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there's a lot of earnings news out there this week let's start with meta's q1 the
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company saw Revenue increased 27% uh from 28.6 uh 5 billion in the same period last year net income more than doubled
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to 12.37 billion this this company is making some money but meta's forecast of rising costs related to AI they've
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replaced a you know their um virtual reality stuff with AI sent which is very expensive sent its share price down 15%
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in extended Trading it's going to cost some money for them to get into this business Mark Zuckerberg said on the
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earnings call that his immediate goal is getting millions or billions of people using meta AI with Revenue coming down
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the line they do not have Revenue plans that's one thing we need to stress a lot
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of this AI doesn't have a business plan yet um and or there's it's a small business plan um and there's
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anticipation of huge profits in the future so he's doubling down on doing this um and at the same time is current
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business is killing it right I mean thoughts I it's arguably unfortunately for our children this is one of the best
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run companies in the world it's just uh the amount of money here they're Printing and he's the what what was I
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thought the most interesting thing about their earnings call relative to Tesla was Tesla's
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massive uh investment in AI you know um musk was bragging about how many gpus they'd order ordered because he's trying
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to create a distraction the fact his core businesses well let me get let me put those earnings you can let's talk
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about the let's talk about metaph first so should a lot of should he be focusing
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on the other parts of his business no because that's he's going to have this is something we were both making fun of
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his uh investments in virtual reality and uh Occulus you know all the metaverse stuff you know and changing
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the name we thought that was ridiculous and a waste of money and throwing money down a down a toilet essentially in this
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case do you think the spending which is going to be massive is he's got to be in
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here right this is not a choice so I can't I I can't predict if these Investments are going to pay off but I
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think they have to make them I I just yeah when you have when you have the Premier Technology eating the world and
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the market the market seems to offer you a return on investment on that the perception that you're investing here I
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mean to a certain extent even to St despite the fact let me back up Microsoft has spent more money on AI
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than every other company in venture capitalist I believe combined if you look at Microsoft and
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its Affiliates and its proxies it is in Sachin nadela is now considered in my opinion the probably
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the brightest minding business and I mean there's a lot of them but his forward lean his forward leaning
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investments in AI have increased the market cap of that company probably one or one to$ 1.4 trillion dollar offer of
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a huge investment but relative to $1.4 trillion it's the best corporate investment it's probably arguably the
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best Venture investment in history and so everyone says we can't be the company that got behind I mean quite frankly
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Mark uh the supposedly the brightest man in technology musk he's way behind in AI
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he talks about it a lot he doesn't have a single real victory in AI it's not his
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he's known in AI for walking away from the most successful AI company ever without a single sh or anything so he's
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trying to play catchup and everyone so I I think Mark Zuckerberg taking his forward-leaning Investments which he can
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afford out of virtual reality into AI that just feels right as rain to me yeah yeah I agree I mean look his main
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business right now is going to carry him through look at these increases he owns
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the current business environment right it looks like uh you know these numbers are really impressive um and it's sort
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of like Microsoft's owning windows and leaning into the future right like where they wanted to lean and uh when they
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leaned into Cloud for example it's a but this is so much more expensive it's just
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they he has to do this and I think people were thrilled when he was making cuts to employees but this stuff is
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expensive and it's also we have to build new Fabs we it's just there's going to be enormous investment here um for this
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and and as we get into Quantum Computing and he just can't he cannot miss this turn or else another company will will
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will take over the all the next version of business even without a business plan
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that people can foresee at this moment um but it's almost like shifting from horses to cars that's what it you know
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the other we're going to have cars the other big shift that just really blew me away meta is essentially a video company
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video now represents more than 60% of time yeah on both Facebook and Instagram on Instagram isn't that your experience
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now with it it's pretty much video but it wasn't that way just 2 or 3 years ago I mean if you think about just how
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TV is on Instagram reals makes up 50% of the time that's spent on Instagram and that's a new product and
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it's a video-based product it's not images it's not Stills it's video I mean people people constantly criticize
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including myself meta for its inability to come up with new products it's not good at Hardware but technically
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speaking they pivot or supplemental or their Venture into video has been enormously successful and also they're
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getting a big bump this week from the the the um Tik Tock Bill passing and Biden signing it I mean this has been
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this is going to this is going to it's a waterfall to all companies and especially Facebook this is this has
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been the greatest there's a great story in the Washington posit to how these legislators quietly got together to do
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this but they got a lot of lift from Facebook he's been talking about this he talked about it with me in 2019 he's
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been aiming at Tik Tok and China for years and now he's gotten his reward I I do think we just but but I don't think
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it's a fair to come play off because let's talk about the Tesla's earnings you were talking about them investing
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their profit fell 55% to 1.1 billion quite a small company from the first quarter of 2023 and revenue fell um 9%
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to 23 uh 21.3 billion the biggest decline since 20 uh 2012 the drop in sales was steeper than Tesla's last
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decline in 2020 which was due to disrupted production during covid uh Tesla put the focus on some of its other
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efforts he's the jazziest hands of jazz hands on earnings call including accelerating the launch of more
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affordable models which she didn't give any details about cyber taxis which he didn't really give any details about um
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and everything else um he's been doing a number of things to try to Jazz up the stock and the one thing that did affect
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people is Cuts job cuts which immediately someone asked me why the stock went up and I said because he's
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doing job cuts and you can do the math right essentially um these numbers are rough numbers but the stock has been
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going up in the last few days largely I think because of cost savings that will will you'll see on the bottom line for
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the next earnings um thoughts on on this they're trying to create any sort of misdirect or weapon of mass distraction
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from the fact it's an automobile company that's attracted a lot of competition and will ultimately trade it uh like an
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automobile company so they went out of their way to talk about the fact that their energy storage business would grow
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at least 75% from 2023 but that's a pimple on the elephant of this company and they're just trying and and then
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they're saying and we're spending all of this money on AI and when Elon Musk goes
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into a new category watch out and people should pay attention because he is a genius around you know Innovation but
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they're trying to talk about anything but they're core well that's a that's a different
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talk show in the sense that I mean one of the reasons meta is performing is Mark Zuckerberg is not launching Rockets
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into space or you know buying you know buying Sky Media or whatever he's not buying Myspace musk is very distracted
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with a lot of different things and this is an automobile company so they're trying to say look over here AI look
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over here you know our energy business but here's the thing if you look at um if you look at Tesla Google trades a 20
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times Enterprise Value deb. Google's 20 met is 21 Microsoft is 26 these are both
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quite frankly better businesses Tesla despite being the worst performing stock year-to date in the S&P trades it 35
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times now let's compare that to auto companies for to 16 times GM is seven times byd their biggest competitor is
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trades at six times so if Tesla just normalizes across big Tech it's going to get cut in half again and if Tesla if
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people finally acknowledge wake up from their hallucination and realize this is not a mobile company it's probably down
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50 to 80% in the next year yeah well he he does not want to be called a dead car he actually in the
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call very not noted this um uh he said we should be thought of as an AI robotics Company If You value Tesla as
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an auto comp just an auto company just the wrong framework if you ask the wrong question then the right answer is
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impossible he's really he's really a clever piece of person robotics yeah that's what he said mhm
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it's a car I get it but he's he's of course pushing the Affordable Car forward they
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were going to have a more affordable car um which they were delayed and now he's
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going to do them earlier I he's got a deliver he's just got he can't make these Pro you know he's his mouth is
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making a lot of promises he can't possibly deliver but yes he's an AI robotics company as what they're doing
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um and that's his line that's his okay let's see it let's see I to me I'm just like show us the money show us the money
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kind of thing um he went on to encourage the autonomous non-believers to get lost
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of course this is what he always does he can't possibly make a statement without
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saying something obnoxious if somebody doesn't believe in that Tesla is going to solve autonomy I think they should
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not be an investor in this company and we will and we are that is his bet that is his thing he's made a lot of promises
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he never C kept um he really feels that uh when when tesed switches on on full self-driving he calls he's going to say
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it's going to be the the biggest asset value appreciation in history um so he sounds like Kathy Wood he should get a
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you should go through transition and wear chunky glasses and start a hedge fund that loses a lot of money well you
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know what I think if he could come out with more affordable cars he'd be in a better position but the overall Market's
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harder and the China competition and the competition competition I just you want
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to get into an affordability competition with China yeah you want to get into an
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affordability race with the Ben Johnson of of affordability see above China unless also service you know if one more
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one more picture of of a cyber truck getting hauled away because it got stuck in the mud he's getting speaking of
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video in line he is getting killed by videos about these trucks and they seemingly didn't sell very many either
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so for a car that only sold it looks like a couple thousand um boy is it an outsized lemon like you know again he's
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getting killed on all ways look good luck Elon we hope you become an AI robotics company that's great for you
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but just as just a you know I always feel like I got to I do think I've owned a Tesla it is a fantastic car it's just
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it should trade at the upper range of automobile companies it should be the highest multiple on IA of any auto
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company which means it's going to go down 60 to 70% and still I would argue back it
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doesn't hasn't had a new thing in a while and the service sucks from what I understand that right I've never had the
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I was amazed at yeah a lot of people and a lot of people I've had this complaint
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from lots of Tesla owners um service is not as good as the ones who are good at service which are the big car companies
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service is an important part of carip the other thing is new fresh things it doesn't it has not had a new Fresh look
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except for the Cyber truck which is not fresh something else I can validate the problems around service when he called
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me an insufferable num skull I put took a big dump in the passenger seat and no one came no came to clean it up from
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Tesla do you still have your Tesla oh no the moment he look you taught me this and the
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moment he started being mean I'm going to Virtue signal now and feel masculine when he called you the definition of
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pure evil MH I'm like look I give the guy a hard time no my heart was filled with hate that was heart was filled with
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hate yeah see when he said that and and and was it wasn't even like tongue and cheek it was like he woke up and
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decided that you're the definition of pure evil the devil you said something to me that's always struck me why am I
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painting this guy's fence I sold my Tesla and I I I'm I haven't been on Twitter in almost a year now yeah well
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thank you Scott I appreciate it in any case good luck Elon with your robotics company and by the way I now see you a
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lot better since I took C of me anyway um Microsoft alphabet earning are coming out after we record any predictions
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Microsoft and who alphabet you've heard of them well my I don't know if you've heard this uh but big Tech is just this
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great business they they just they've got this they've got this thing I think it's called Sam Sera
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search and it's a monopoly and it keeps printing money uh look the answer is I don't know but the good money is always
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on Big T so so I'm going to go out on a limb here and say that the numbers are going to be amazing even with meta their
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numbers are amazing but their stock is accelerated so much that the the I think people were hoping for another like oh I
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fired half the staff and my revenues are still going up yes firing people gets you good stock hits I'll tell you that