Speaker 1: This episode is brought to you by P and C Bank.
Speaker 1: A lot of people think podcasts about work are boring,
Speaker 1: and sure they definitely can be, but understanding a professionals
Speaker 1: routine shows us how they achieve their success little by little,
Speaker 1: day after day. It's like banking with P and C Bank.
Speaker 1: It might seem boring to safe plan and make calculated
Speaker 1: decisions with your bank, but keeping your money boring is
Speaker 1: what helps you live or more happily fulfilled life. P
Speaker 1: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly
Speaker 1: Boring since eighteen sixty five is a service mark of
Speaker 1: the PNC Financial Service Group, Inc. P and C Bank
Speaker 1: National Association Member FDIC.
Speaker 2: Erness What's Up?
Speaker 1: You ever walk into a small business and everything just
Speaker 1: works like the checkout is fast, the receipts are digital,
Speaker 1: tipping is a breeze, and you're out the door before
Speaker 1: the line even builds. Odds are they're using Square? We
Speaker 1: love supporting business that run on Square because it just
Speaker 1: feels seamless. Whether it's a local coffee shop, a vendor
Speaker 1: at a pop up market, or even one of our
Speaker 1: merch partners. Square makes it easy for them to take payments,
Speaker 1: manage inventory, and run their business with confidence, all from
Speaker 1: one simple system. If you're a business owner or even
Speaker 1: just thinking about launching something soon, Square is hands down
Speaker 1: one of the best tools out there to help you start,
Speaker 1: run and grow. It's not just about payments, it's about
Speaker 1: giving you time back so you can focus on.
Speaker 2: What matters most ready.
Speaker 1: To see how Square can transform your business, visit Square
Speaker 1: dot com backslash, go backslash eyl to learn more. That's
Speaker 1: Square dot com backslash, go backslash eyl. Don't wait, don't hesitate.
Speaker 1: Let's Square handle the back end so you can keep
Speaker 1: pushing your vision forward.
Speaker 3: So that has lost forty five billion dollars on their
Speaker 3: Metaverse division and the stock dropped after their earnings report
Speaker 3: last Thursday. I believe when their guidance so we didn't
Speaker 3: really meet the expectation. Even though their revenue am expectations.
Speaker 2: They're incredible.
Speaker 3: Their revenue outpaced expectations, profits were doubles, but their guidance
Speaker 3: fell short and as a result, it dropped I think
Speaker 3: like fifteen percent. On Friday, they lost two hundred billion
Speaker 3: in market cup. So, okay, Ian, what's your take on this.
Speaker 3: I'm gonna come in listen.
Speaker 2: I know.
Speaker 4: Normally I'm on the other side of his argument. This
Speaker 4: is unfair like for them to have outperformed this well.
Speaker 4: Zuckerberg is still an incredible shape. All offices are on fire.
Speaker 4: Whatsappens doing incredibly well? Instagram is different. Put Sports Illustrated
Speaker 4: out of business. You got all the bikini girls on
Speaker 4: Instagram for free. They are the ultimate competitor, and they
Speaker 4: dropped fifteen percent because they're guiding lower for the next quarter.
Speaker 2: Meanwhile, Dusk and Master was.
Speaker 4: Saying, hey, Tesla may be the new n Ride, and
Speaker 4: they popped after earnings and then pop this morning after
Speaker 4: they get the China deal done, like it's one of
Speaker 4: those in it and I get it. I was talking
Speaker 4: to everyone a red Pandla in stock club about it.
Speaker 4: There was more upside on the Tesla trade at one
Speaker 4: thirty eight one thirty nine than there is the Meta trade.
Speaker 4: But for Teslas, I mean, for a matter to the
Speaker 4: gap down fifteen percent, which I don't remember them ever
Speaker 4: gapping down that much, and earnings, I don't know what
Speaker 4: the analysts were thinking. Like normally I'm banging the table
Speaker 4: on the other side of this argument.
Speaker 2: But when it dropped. I'm like, the fucking happened?
Speaker 4: Like the numbers were great, this appear he was honest,
Speaker 4: and what's gonna happen next quarter?
Speaker 2: And as a result, they fall fifteen percent?
Speaker 1: But there's a keyer point. There's a key a point,
Speaker 1: So like I think I text you, I think I
Speaker 1: text you after Tesla and I'm like, yeah, makes sense
Speaker 1: of it because we got to explain the why, and
Speaker 1: so I had to dig really deep in the research
Speaker 1: to figure out, like, all right, fifteen percent is crazy
Speaker 1: and meta. Over the past few years, we've seen historic drops, right,
Speaker 1: like they had the large decline in.
Speaker 2: History, but they've also had the largest appreciation history.
Speaker 1: This fifteen percent, this is when the honesty part of
Speaker 1: being a CEO and a leader actually backfired for him.
Speaker 1: But yes, it may it made sense why so yes,
Speaker 1: the numbers doubling, profits, revenues is up twenty seven percent.
Speaker 2: They actually increased their average ad price by six.
Speaker 1: Percent, so they see more people put it as they
Speaker 1: raise the prices on those the weak guidance was cast
Speaker 1: for it. But what he admitted to is that they're
Speaker 1: going to have to increase the spending in AI. They
Speaker 1: want to be the leaders in it. They want to
Speaker 1: have the infrastructure for it, they want to have the
Speaker 1: platform for it, they want to be the innovators in it.
Speaker 1: So you would think that would be a good time.
Speaker 1: I want to get leaded behind. On the surface, it
Speaker 1: is a good sign, so that increase. I think he
Speaker 1: said up to ten billion a year in the AI spending,
Speaker 1: which is a futuristic technology.
Speaker 2: Correct, yes, So then we have to peel back the layers.
Speaker 1: How much money or what was the last futuristic innovation
Speaker 1: that they said they were going to spend money on.
Speaker 4: I get it the metaverse. I've waived that flag loud
Speaker 4: and clear. But guess what when you have market makers,
Speaker 4: how much.
Speaker 2: Did it lose? Quadrullions?
Speaker 1: It was a lot, a fifty billion dollar futuristic innovation
Speaker 1: that didn't pan out. You're now telling investors we're going
Speaker 1: to spend more on a futuristic now we know that
Speaker 1: this has a use case, right, which should be since
Speaker 1: the future literally we can see it like we've see
Speaker 1: it now, we're using it now, it has cuse. So
Speaker 1: there was there were some paws in that, right. People
Speaker 1: are looking like, well, they're going to spend more, We're
Speaker 1: not gonna be able to recruit it, and Zuckerber said,
Speaker 1: we're not going to be able to see profits from
Speaker 1: the spending until maybe twenty twenty seven.
Speaker 2: And so now you're.
Speaker 1: Telling investors futuristic innovation, we're going to put more capital
Speaker 1: into it. People have seen it over the past three years,
Speaker 1: the future innovation they lost money in as an investor
Speaker 1: fifty percent.
Speaker 2: I mean, it doesn't make sense.
Speaker 1: But those are some of the is that I fear, yeah,
Speaker 1: that look, that's that that that slight fear of investigato
Speaker 1: the future again and what if it doesn't work?
Speaker 4: The different main differences between Metaverse and this spend is
Speaker 4: that Meta wasn't a hardware company, per se, and no
Speaker 4: one wanted the glasses. The AI move is in play
Speaker 4: by Apple, Microsoft, Cisco, and Video Intel if you want
Speaker 4: to throw them in the race. So there's already a
Speaker 4: market for it. Then if you look at the gross
Speaker 4: margins eighty percent, the Meta AI isn't bad.
Speaker 2: And they also made the operating system for.
Speaker 4: Their glasses open source, which I think was a brilliant
Speaker 4: move to be able to have something open source in
Speaker 4: an era where like Apple is too closed to let
Speaker 4: developers develop on that platform. And of course because they're
Speaker 4: not in the lead and that they're letting that be
Speaker 4: open source. But I think they made a lot of
Speaker 4: great moves these last two quarters. I think that that's
Speaker 4: kind of like being like, well, I'm not going to
Speaker 4: listen to Ian because you call square, what about the
Speaker 4: fifteen hundred other great things? I'll call right Like, he
Speaker 4: got that one thing wrong and I was the main
Speaker 4: one wave in that flag. But if you look at Instagram,
Speaker 4: even Messenger, the amount of uses they have on Messenger,
Speaker 4: Facebook is still moving for the older crowd. I think
Speaker 4: he's doing a hell of a job running that organization,
Speaker 4: and in profits will higher. I like that the profit
Speaker 4: margins twenty percent, gross margin is eighty.
Speaker 2: You can't yeah, you can't argue with that. So I
Speaker 2: think it was a mistake. And it's had a tremendous run.
Speaker 1: So even with the fifteen percent pullback that the run
Speaker 1: that has had over the past.
Speaker 2: Two quarters has been incredible. Yea, So people who have
Speaker 2: some profit take Yeah.
Speaker 1: So if you've been in the stock since it was
Speaker 1: down in the one hundreds one sixties, and you've wrote
Speaker 1: this thing all the way up to four hundred four fifty,
Speaker 1: fifteen percent pull back. Yeah, okay, a slight correction that
Speaker 1: makes sense of it.
Speaker 3: Yeah, well I spoke to it in cider. Are you
Speaker 3: telling me this?
Speaker 2: Yeah? Yeah, Anonymous.
Speaker 3: So so I'll share what he had to say about
Speaker 3: right after the earnings came out and it was crashing,
Speaker 3: and he said revenue was up by twenty seven percent.
Speaker 3: We're increasing cap x for artificial intelligence, and the same
Speaker 3: risks that always persisted are there. Q one results are
Speaker 3: instantly positive, especially with twenty seven percent year over year
Speaker 3: growth in revenue. Market is over reacting at the moment.
Speaker 3: I agree with that he said what we just said.
Speaker 3: But yeah, I think it's interesting the kind of hair
Speaker 3: from I mean that that even confirms, like kind of
Speaker 3: what we just said, like perfect if there's an insight
Speaker 3: who was saying the same exact thing I think this
Speaker 3: is about. I think the CFO might be to blame too,
Speaker 3: because she gave a very pessimistic outlook in her in
Speaker 3: the guidance. So that's interesting. While she would do that,
Speaker 3: I'm not sure, but I think that she. I don't
Speaker 3: think her guidance report was something that they probably were
Speaker 3: happy about, or maybe they wanted to stock to go
Speaker 3: down so they could buy more who knows, but she
Speaker 3: the CFO gave a very pessimistic guidance.
Speaker 1: Outlook for the second quarter, right, Yeah, and so it
Speaker 1: wasn't even a full guidance for the entire year.
Speaker 2: So I mean take that with a grain of salt.
Speaker 1: But medis here to stay, not going anywhere.
Speaker 4: Yeah, and we got to reward seeos. To be honest,
Speaker 4: I'm not going to continue rail on Elion.
Speaker 2: But yeah, but Jesus Christ children, but the children.
Speaker 4: He hasn't delivered on some promises, the mouse per gallon
Speaker 4: that the carr can get at best. I think Dustin
Speaker 4: went a little bit far calling at the new airon,
Speaker 4: but math is not mathing.
Speaker 5: An illegal alien from Guatemala charged with raping a child
Speaker 5: in Massachusetts. An MS thirteen gang member from Al Salvador
Speaker 5: accused of murdering a Texas man of Venezuelan charged with
Speaker 5: filming and selling child pornography in Michigan. These are just
Speaker 5: some of the heinous migrant criminals caught because of President
Speaker 5: Donald J. Trump's leadership. I'm Christy Noman, the United States
Speaker 5: Secretary of Homeland Security. Under President Trump, Attempted illegal border
Speaker 5: crossings are at the lowest levels ever recorded, and over
Speaker 5: one hundred thousand illegal aliens have been arrested. If you
Speaker 5: are here illegally, your next you will be fine nearly
Speaker 5: one thousand dollars a day, imprisoned, and deported. You will
Speaker 5: never return. But if you register using our CBP home
Speaker 5: app and leave now, you could be allowed to return legally.
Speaker 5: Do what's right. Leave now. Under President Trump America's laws,
Speaker 5: border and families will be protected.
Speaker 2: Sponsored by the United States Department of Homeland Security,