Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Joining us now from
Speaker 1: Snowflake Clothing, Dan, i'ves joins us this morning.
Speaker 2: Thank you for toning it down. Dan. I'm apoplectic this morning.
Speaker 1: Over what I saw is a complete reaffirmation of the
Speaker 1: Google model.
Speaker 2: It's out there. I'm gonna do a major shout out
Speaker 2: to as a fitch over it. Heard in the street
Speaker 2: on the Wall Street Journal, who I think really nailed?
Speaker 2: I was OMG? Was I right to be? Omg? At
Speaker 2: four twenty yesterday afternoon? I mean, look this it.
Speaker 3: I think it's a game changer for the whole story
Speaker 3: because it shows like Google, now there was a view
Speaker 3: they're in the defensive. AI is going to ruin their
Speaker 3: search business now look at look at search, mass advertising, struck, YouTube, cloud,
Speaker 3: better things back and then the best thing by then
Speaker 3: increasing cap bax ten billion. That's then basically beat in
Speaker 3: their chest saying hey in this arm.
Speaker 1: I went and looked at it, folks. You can do
Speaker 1: this with the WACC screen. Good morning, mister Secunda. The
Speaker 1: way did the average cost a capitol screen on the
Speaker 1: Bloomberg an added ten billion of capax for Google is
Speaker 1: basically trying to buy another house out in Menlo Park.
Speaker 2: It's like a rounding error.
Speaker 3: That's it's exactly and look Tom, the last thing that
Speaker 3: they could be is on the outside looking in on
Speaker 3: this AI arms race. And I think the view, look,
Speaker 3: we think on a large cap perspective, this has been
Speaker 3: the most over sold stock relative.
Speaker 2: I'll go with it.
Speaker 3: And again I get like DOJ regulatory, But the view
Speaker 3: that AI is going to ruin Alphabet's business is dramatically flowed.
Speaker 2: Let's go touch a feey concept here, it's away.
Speaker 1: Lisa Rolls, what did we learn yesterday about how we
Speaker 1: use AI.
Speaker 2: With our searches? I think we learned something new yesterday.
Speaker 3: I think what you learn is that you do those searches.
Speaker 3: Google's going to play a huge part. And I think
Speaker 3: if you look at like actual like advertising, you look
Speaker 3: at like search results, you look at all the underlying metrics,
Speaker 3: it shows that it's actually an accelerant for their business.
Speaker 3: That's something that takes away and I think that's the thing.
Speaker 1: Is Paul Dan's code. Okay, for those of you on radio,
Speaker 1: it looks like look at his code. It's like a
Speaker 1: truckboard in a physics lecture.
Speaker 4: It's not kill tech it's very troubling.
Speaker 2: In a Cartesian space.
Speaker 4: Continue, search revenue is number of clicks times revenue per click.
Speaker 4: I'm clicking materially less. How does that not bead for
Speaker 4: their search case?
Speaker 3: So that you can say it's bad now. But the
Speaker 3: view is is that Paul, given what they're doing in
Speaker 3: terms of investments in AI, given where they view ultimately
Speaker 3: the future, that when you're going to come back in
Speaker 3: terms of searching through models, through through actually like LMS,
Speaker 3: Google is going to play a role in monetizing that
Speaker 3: and even on the advertising side. And I think that's
Speaker 3: really the view is that this is not something that's
Speaker 3: structurally gonna be a threat to their business.
Speaker 2: It's actually the opposite.
Speaker 3: They're gonna turn it into what I view.
Speaker 2: As a towel.
Speaker 3: And I think that's what Tom's talking about. That's what
Speaker 3: came out last night, is that this is not a
Speaker 3: company on the defensive.
Speaker 2: This is coming on the offense.
Speaker 4: Okay, all right, So, and we're seeing that in this
Speaker 4: in the stock the stocks up three point six percent
Speaker 4: here today, although it's flat for the year, so it's
Speaker 4: there's definitely concern out there in the marketplace about this story.
Speaker 4: Here more concern is with Tesla. I don't know, man,
Speaker 4: My hat's off to you hanging with this dude, But
Speaker 4: making cars is not a good business for anybody. It's
Speaker 4: never has been. So he's trying to redirect us to
Speaker 4: all this other stuff, which fine, you know, a lot
Speaker 4: of people will bank on this guy. Where should we
Speaker 4: be focusing our attention on the Tesla story because I
Speaker 4: don't want to be bending metal here.
Speaker 3: Look but me, we've talked about for years, like I
Speaker 3: don't view this as a car company, and you never
Speaker 3: have right nowlogies. But to me, the future is about AI.
Speaker 3: It's about physical AI in terms of autonomous robotics. No
Speaker 3: this quarter, in the next few quarters, there is nothing
Speaker 3: right at home about right in terms of actual deliveries, demand,
Speaker 3: gross margins EPs. But if you look at the story
Speaker 3: over the long term, I believe ninety percent of the
Speaker 3: future value is about robotaxis autonomous. Eventually, it's going to
Speaker 3: be optimist that when it comes to physical AI, and
Speaker 3: Jensen talks about this all the time, the two best
Speaker 3: physical AI plays are Tesla in the video.
Speaker 4: Okay, that I mean, that's obviously the future here. Give
Speaker 4: us that the mile post. We should be if we're
Speaker 4: taking our attention away from the car business, what are
Speaker 4: some of the mile posts for these other businesses shoulday
Speaker 4: attention to.
Speaker 3: So well, first off, from a robotaxic perspective, you're looking
Speaker 3: to be in twenty.
Speaker 2: Five cities in the next year. Okay.
Speaker 3: So our team was in Austin. We saw Robotaxi front center.
Speaker 3: So you're seeing that expansing diffinitely in Austin. California's next,
Speaker 3: then Florida and bunch other Okay, you know, see, look,
Speaker 3: and I believe one of the big mile posts that
Speaker 3: everyone's looking for is, you know, at some point, probably
Speaker 3: early twenty six, when Keyn's in a robo taxi and
Speaker 3: the thing is, I do think that I do think
Speaker 3: that that will happen.
Speaker 2: Okay, Yeah, it's interesting.
Speaker 4: I mean Tom, when Tom's in a roto taxi, Yeah,
Speaker 4: I might be mine.
Speaker 2: Good look for that.
Speaker 1: Dan Ives is here in your commune across the nation,
Speaker 1: particularly good early early morning in the sixteen miles between
Speaker 1: Menlo Park and Coopertino.
Speaker 2: How did Coopertino digest the Google earnings yesterday?
Speaker 1: You know, the basic you know, I can just see
Speaker 1: the leadership of Google and Apple taking a breakfast or
Speaker 1: lunch at Mademoiselle Collette, you know, some fancy place out
Speaker 1: there where everybody eats herbal And the answer is, how
Speaker 1: does Apple take this?
Speaker 2: To me, it's a huge deal for Apple weave.
Speaker 3: I think that the view that Google is going to
Speaker 3: become less important Apple is the exact opt.
Speaker 2: An agreement with that talk about. We've said it. It's
Speaker 2: a two part thing.
Speaker 3: I think you need to get a significant sort of
Speaker 3: upping of that partnership with Google because when you look
Speaker 3: at partners that's one that they're going to bet on.
Speaker 3: In terms of Apple, and I continue as I've talked about,
Speaker 3: I think for the first time, they're going to have
Speaker 3: to do an acquisition. Like I told you, I think
Speaker 3: perplexity continues to be the one that they should go after,
Speaker 3: because my whole point is we should Apple should go
Speaker 3: after perplexity.
Speaker 2: And let's let's dig into that time. Full disclosure, folks.
Speaker 1: Mister Secunda, one of the founders of Bloomberg, is hugely
Speaker 1: influential in AI with the Secunda Foundation, and he leads
Speaker 1: with perplexity.
Speaker 2: What is perplexity When.
Speaker 3: You think about models, chat, GPT, you know anyone that
Speaker 3: uses perplexity as you know, I've used probably one of
Speaker 3: the best next gen AI models out there. The reason
Speaker 3: it's so important and some disagree, but Apple needs to
Speaker 3: make an aggressive move. They cannot watch this AI revolution
Speaker 3: and just when it pass by. That's why I think
Speaker 3: what you saw from Alphabet was a stepping up when
Speaker 3: it comes to Apple. You know, if you go back WWDC,
Speaker 3: they really hardly even mentioned AI, and I think the
Speaker 3: time has come for them to make aggressive moves in AI,
Speaker 3: and that will be the big focus next week in
Speaker 3: the conference.
Speaker 1: Lisa, what's the most herbal macha coffee thing in the morning, Like,
Speaker 1: what would be the typical West Coast you know, a
Speaker 1: healthy coffee thing.
Speaker 2: It's called a dirty macha Cooper Tina.
Speaker 1: This morning, the team's having their dirty matchas to get
Speaker 1: the days started again. How does Apple respond to what
Speaker 1: we learned thirteen percent YouTube growth?
Speaker 2: Thank you folks for that. I'm living it every day.
Speaker 1: And the answer is how does Apple respond to perplexity,
Speaker 1: to Gemini and to Google's you know, their embedded relationship Google.
Speaker 3: If you can't beat them, join them, Like they're basically
Speaker 3: going to have to double down on the partnership. Despite
Speaker 3: all the words in terms of d J and everything
Speaker 3: that Google is dealing with. And I think for Apple,
Speaker 3: look this, you have the best global install based in
Speaker 3: the world consumer. You have two point four billion device
Speaker 3: one point five billion iPhones. Now's the time to start
Speaker 3: to monetize AI. But that's not going to happen internally.
Speaker 3: It's not going to happen within the walls of Apple Park.
Speaker 3: It needs to happen through partnerships and what I believe
Speaker 3: ultimately is an acquisition tom.
Speaker 4: This is courtesy of Google AI. A dirty Macha, also
Speaker 4: known as a macha espresso fusion, is a popular beverage
Speaker 4: that combines the earthly flavor of macha tea with the
Speaker 4: bold intensity of a shot or two of espresso.
Speaker 3: Dan.
Speaker 2: In terms of like single, best Buy, web Bush, I
Speaker 2: mean it's great.
Speaker 1: I love the snowflake. Look you look like Heinman's Physics
Speaker 1: last years ago when you got that what's the hat?
Speaker 2: Damn it? Yeah, Majorca hat.
Speaker 3: It's a you know, it's from Majorca to one of
Speaker 3: my Orca It's just my Orca hat. And look it's
Speaker 3: it's one where you know this is I mean to
Speaker 3: me when I look at like Webbush, best Buy, the
Speaker 3: best names. I believe it's Microsoft here. This is the
Speaker 3: one that you know because this is the one. It's
Speaker 3: not just about four trillion, it's about as the enterprise
Speaker 3: AI plays out in the backyard of red. It's Nandella
Speaker 3: that's gonna does.
Speaker 2: Think of what Google did yesterday.
Speaker 3: I think what Google did yesterday on Google Cloud, I
Speaker 3: think just speaks further what you're going to see what
Speaker 3: they did on Azure coming next week. But the most
Speaker 3: important thing is that everything that Google's doing, all the investment,
Speaker 3: everything is sand search gets who eventually benefits.
Speaker 2: Because they're the toll.
Speaker 3: Microsoft's the toll collector. It doesn't matter who's there in
Speaker 3: one way or know you're paying them as more and
Speaker 3: more moved to the cloud right and it's AI driven
Speaker 3: that continues.
Speaker 1: One final question, this is so important the gloom crew
Speaker 1: on dan Ives.
Speaker 2: Did you know I understand there's haters out there.
Speaker 3: Now, haters, haters.
Speaker 1: Lisa, and then you know thousands others, the dan Ives haters.
Speaker 1: You have been so right, including pounding the table the
Speaker 1: first week of April. I want you to speak to
Speaker 1: the haters right now about the X axis of the
Speaker 1: ives tech boom.
Speaker 3: Look, I think the haters, you know, and right now
Speaker 3: they're they're in the hibernation mood in those caves. They
Speaker 3: can find AI in the spreadsheets. And I think part
Speaker 3: of the problem is that they're underestimating the Fourth Industrial Revolution.
Speaker 3: And as I've said, what.
Speaker 2: Does that mean?
Speaker 3: Look three millionaire miles.
Speaker 2: Ask walking test speech.
Speaker 3: Look it point is three millionaire miles to last twenty
Speaker 3: five years. It's about seeing what's happening in the world.
Speaker 3: And if you look what's happened in Asia and you
Speaker 3: look at Chipped the man, we are only it is
Speaker 3: fractional where we are relative to the opportunity.
Speaker 2: It's our view.
Speaker 3: It's ten pm in the AI party. It was nine
Speaker 3: pm and the party goes to four am.
Speaker 1: I'm gonna say this is simple as I can.
Speaker 2: We keep tracked.
Speaker 1: We learn from people who are wrong, we learn from
Speaker 1: people who are right. But it's this thematic idea of
Speaker 1: where we are folks right now to me, I said
Speaker 1: this last.
Speaker 2: Night to missus Keane. It's like late nineteen ninety four,
Speaker 2: early nineteen ninety five and Dan.
Speaker 1: Ives was in a bar with a Budweiser in his
Speaker 1: hand saying, Codje Google's.
Speaker 2: Buy a dog file.
Speaker 3: It's nineteen ninety five, not ninety ninety nine.
Speaker 2: Good Jedives, Thank you so much with Medbush