1 00:00:00,120 --> 00:00:01,880 Welcome back, everyone. Today on the Joseph Carlson 2 00:00:01,880 --> 00:00:04,200 Show, we're going to be taking a look at two different companies 3 00:00:04,200 --> 00:00:07,840 that just reported earnings. Yesterday it was Google, today 4 00:00:07,840 --> 00:00:10,200 it's Amazon. Amazon reported just minutes 5 00:00:10,200 --> 00:00:11,640 ago. I'm going to go through the 6 00:00:11,640 --> 00:00:13,480 report. I'll give you my quick reaction 7 00:00:13,480 --> 00:00:15,400 on it. And Google reported yesterday, 8 00:00:15,680 --> 00:00:17,080 had more time to look at that one. 9 00:00:17,200 --> 00:00:19,160 I'll give you the full breakdown of that one as well. 10 00:00:19,720 --> 00:00:22,080 Now to start things off, we can just take a look at what's going 11 00:00:22,080 --> 00:00:25,400 on with Amazon because this one literally just reported a couple 12 00:00:25,400 --> 00:00:27,480 minutes ago. If we look at how the stock is 13 00:00:27,480 --> 00:00:32,159 doing, we can bring it up here. Amazon stock will zoom into it 14 00:00:32,159 --> 00:00:36,720 and it's up around 9% as of now. Very good start. 15 00:00:36,720 --> 00:00:39,280 Obviously something went way above expectations. 16 00:00:39,600 --> 00:00:42,480 Amazon beat, they beat on something. 17 00:00:42,880 --> 00:00:47,080 My guess instantly would be AWS because it's all eyes on AWS 18 00:00:47,880 --> 00:00:49,360 now. There was a lot of chatter. 19 00:00:49,800 --> 00:00:53,880 The AWS would come in very low that it would come in far below, 20 00:00:54,560 --> 00:00:57,640 you know, just dragging behind Google Cloud and Azure. 21 00:00:57,840 --> 00:01:00,120 Haven't you heard that? Haven't you felt that a little 22 00:01:00,120 --> 00:01:03,120 bit that Google Cloud and Microsoft Azure are kind of 23 00:01:03,120 --> 00:01:06,360 running away with it? And poor old AWS is just kind of 24 00:01:06,360 --> 00:01:09,000 old and bloated. It can't attract new clients. 25 00:01:09,600 --> 00:01:14,440 I've been resistant to that because AWS has 4 + 1,000,000 26 00:01:14,440 --> 00:01:16,600 customers. They're not all going to just 27 00:01:16,840 --> 00:01:20,600 run away in a single day to Google Cloud or, or Microsoft 28 00:01:20,600 --> 00:01:22,120 Azure. And they're not. 29 00:01:22,640 --> 00:01:27,160 The reason that Amazon is up 9% as of right now is because if we 30 00:01:27,160 --> 00:01:29,360 look at their earnings report, we can go through it, they 31 00:01:29,360 --> 00:01:31,720 highlight a couple things and, and this all looks great. 32 00:01:32,000 --> 00:01:33,920 We'll go through all of it. But I just want to highlight the 33 00:01:33,920 --> 00:01:37,400 most important one here, the AWS segment. 34 00:01:38,760 --> 00:01:43,280 Where is it the revenue growth? Let's take a look right here. 35 00:01:43,600 --> 00:01:48,720 We, we got it right here. AWS segment sales increased 20% 36 00:01:48,720 --> 00:01:53,800 year over year to 33 billion. What was that number, 20%? 37 00:01:54,480 --> 00:01:57,560 People are predicting like 16% or 17%. 38 00:01:58,320 --> 00:02:02,360 The Street had it at 18%. AWS came in and they said no, 39 00:02:02,360 --> 00:02:05,000 20%. We're growing way faster than 40 00:02:05,000 --> 00:02:08,440 anyone's really predicting. Maybe a few small investors, but 41 00:02:08,680 --> 00:02:13,120 really this is fast growth. 20% is fast given the scale and size 42 00:02:13,120 --> 00:02:15,720 of AWS. Now again, it's not as fast as 43 00:02:15,720 --> 00:02:19,520 Google or Azure, but it's much larger. 44 00:02:19,520 --> 00:02:25,040 This is $33 billion in 1/4. AWS is so big, it's almost as 45 00:02:25,040 --> 00:02:28,360 big as Microsoft Azure and Google Cloud combined. 46 00:02:28,600 --> 00:02:30,640 So we're working on an entirely different scale here. 47 00:02:31,160 --> 00:02:33,480 Now to look through the the rest of Amazon's report. 48 00:02:33,480 --> 00:02:35,600 And I just want to give a quick reaction here before we jump 49 00:02:35,600 --> 00:02:39,240 into Google. And, and I, I say this again as 50 00:02:39,240 --> 00:02:41,520 someone that's, I'm very invested in Amazon. 51 00:02:41,520 --> 00:02:44,360 I can show you my position in it right here. 52 00:02:44,560 --> 00:02:49,200 I have a $137,000 position, $42,000 in the green. 53 00:02:49,480 --> 00:02:52,400 It's going to be up in the green if these gains stick around. 54 00:02:52,640 --> 00:02:55,440 So I'm in it on Amazon. If you notice in the story, fund 55 00:02:55,720 --> 00:02:59,320 this portfolio, Amazon is the largest position today. 56 00:02:59,880 --> 00:03:02,120 But I'm also in Google across 2 portfolios. 57 00:03:02,320 --> 00:03:05,400 When I combine Google across both portfolios, it's actually a 58 00:03:05,400 --> 00:03:07,040 larger position than Amazon today. 59 00:03:07,480 --> 00:03:09,680 But in any case, I am very invested in Amazon. 60 00:03:10,080 --> 00:03:13,000 I want this company to do really well and I'm really excited to 61 00:03:13,000 --> 00:03:15,720 see the AWS growth. But for me, there's bigger 62 00:03:15,720 --> 00:03:17,280 things to focus on than even AWS. 63 00:03:17,320 --> 00:03:22,200 When we look at Amazon, people discount the other businesses 64 00:03:22,200 --> 00:03:24,960 that they're in, but they're in a lot of exceptional businesses. 65 00:03:24,960 --> 00:03:27,600 The retail one is one that they're in that's exceptional. 66 00:03:27,640 --> 00:03:32,760 Online retail is huge. Net sales increased 13% to 180.2 67 00:03:32,760 --> 00:03:36,640 billion in the third quarter compared with one 58.9 billion 68 00:03:36,640 --> 00:03:41,560 in the third quarter of 2024. Excluding 1.5 billion favorable 69 00:03:41,560 --> 00:03:43,920 impact from a year over year change in foreign exchange. 70 00:03:44,600 --> 00:03:50,200 So they grew from 158.9 to 180 massive growth in their total 71 00:03:50,200 --> 00:03:52,200 sales. North America segment sales 72 00:03:52,200 --> 00:03:55,200 increased 11%. International is growing faster 73 00:03:55,200 --> 00:03:58,080 at 14%. Then AWS of course increased by 74 00:03:58,080 --> 00:03:59,960 20%. So that's lifting up the growth 75 00:03:59,960 --> 00:04:02,120 rate. Overall the operating income was 76 00:04:02,120 --> 00:04:07,080 17.4 billion in the third quarter compared with 17.4 a 77 00:04:07,280 --> 00:04:10,200 year ago. So basically the exact same, the 78 00:04:10,240 --> 00:04:15,040 operating income staying flat. It says it excludes 2 special 79 00:04:15,040 --> 00:04:18,079 charges, 2.5 billion. Some legal battle. 80 00:04:18,079 --> 00:04:20,760 All these companies have legal battles, something with Europe, 81 00:04:20,760 --> 00:04:22,480 I'm sure. Yeah, the Federal Trade 82 00:04:22,480 --> 00:04:26,760 Commission, $1.8 billion. North America segment operating 83 00:04:26,760 --> 00:04:30,800 income was 4.8 billion compared with 5.7 billion. 84 00:04:31,000 --> 00:04:33,040 So their operating income actually went down year over 85 00:04:33,040 --> 00:04:34,680 year. They have more operational 86 00:04:34,680 --> 00:04:36,640 expenses. We'll probably get to that in 87 00:04:36,640 --> 00:04:38,920 just a minute. International segment operating 88 00:04:38,920 --> 00:04:42,760 income was 1.2 billion compared to 1.3 in the third quarter of 89 00:04:42,760 --> 00:04:46,280 2024. The AWS segment operating income 90 00:04:46,280 --> 00:04:48,440 was 11.4 billion compared with 10. 91 00:04:48,720 --> 00:04:51,440 So AWS seems like the only part that's growing its operating 92 00:04:51,440 --> 00:04:53,640 income year over year out of what we're looking at. 93 00:04:54,440 --> 00:04:56,080 Now. Again, when investors are 94 00:04:56,080 --> 00:04:58,360 looking at this, they'll look at the top and bottom line, but 95 00:04:58,360 --> 00:05:00,720 they're focused solely on that AWS number. 96 00:05:00,720 --> 00:05:02,640 That is all eyes are looking at that. 97 00:05:03,240 --> 00:05:08,080 The net income increased to 21.2 billion in the third quarter or 98 00:05:08,080 --> 00:05:12,320 1.9 five, $1.95 per diluted share. 99 00:05:13,080 --> 00:05:18,720 That's crazy compared with 15.3 billion or $1.43 diluted per 100 00:05:18,720 --> 00:05:21,520 share last year. So I, I don't know what the 101 00:05:21,520 --> 00:05:27,000 growth rate is, but 143 to 195 is huge growth in net income and 102 00:05:27,000 --> 00:05:30,160 they're already growing net income like crazy. 103 00:05:30,440 --> 00:05:34,600 If we take a look at Amazon, we'll have these numbers in, in 104 00:05:34,600 --> 00:05:36,240 a minute, but we can go ahead and just take a look at the 105 00:05:36,240 --> 00:05:37,760 growth of their net income over time. 106 00:05:38,280 --> 00:05:39,880 This is what the chart looks like. 107 00:05:40,400 --> 00:05:42,840 We can see this exponential growth. 108 00:05:43,080 --> 00:05:47,280 This is over a trailing year. This is still growing quickly, 109 00:05:47,720 --> 00:05:50,720 very impressive to see. I love seeing the net income 110 00:05:50,720 --> 00:05:52,960 grow. Operating cash flow increase by 111 00:05:52,960 --> 00:05:55,360 16%. So we do have operating cash 112 00:05:55,360 --> 00:05:59,960 flow growth very fast to 130.7 billion for the trailing 12 113 00:05:59,960 --> 00:06:05,160 months compared with 112 free cash flow, this is going down. 114 00:06:05,880 --> 00:06:09,360 Remember, free cash flow is the amount of of income from 115 00:06:09,360 --> 00:06:11,800 operations minus your CapEx investment. 116 00:06:12,160 --> 00:06:16,160 Since they're ramping up CapEx to take advantage of this unique 117 00:06:16,160 --> 00:06:19,080 situation we have with artificial intelligence, it 118 00:06:19,080 --> 00:06:22,080 naturally follows that free cash flow is declining. 119 00:06:22,480 --> 00:06:24,280 But free cash flow is not declining because they're 120 00:06:24,280 --> 00:06:27,800 bringing in less cash. It's declining because they're 121 00:06:28,040 --> 00:06:31,680 out laying more cash to CapEx, a very important distinction. 122 00:06:31,960 --> 00:06:33,960 And you can see that through the CapEx line. 123 00:06:34,280 --> 00:06:35,800 You can see it through the free cash line. 124 00:06:35,800 --> 00:06:39,480 You kind of put those together. It decreased by 14.8 billion in 125 00:06:39,480 --> 00:06:42,480 the trailing 12 months, driven primarily by year over year 126 00:06:42,480 --> 00:06:46,280 increases of 50.9 billion in purchases of property and 127 00:06:46,280 --> 00:06:48,400 equipment. Purchases of property and 128 00:06:48,400 --> 00:06:53,160 equipment is just a euphemism for CapEx or vice versa. 129 00:06:53,600 --> 00:06:55,160 So we have the CapEx right there. 130 00:06:56,520 --> 00:07:01,000 This is the commentary from the CEO, Andy Jassi, who he's taken 131 00:07:01,000 --> 00:07:03,200 a lot of trash over the past five years. 132 00:07:03,200 --> 00:07:05,680 People have really trashed his name across the Internet. 133 00:07:06,320 --> 00:07:08,840 Nobody likes it when a stock stays flat for a wonderful 134 00:07:08,840 --> 00:07:11,520 company. I've defended Andy Jassi only 135 00:07:11,520 --> 00:07:13,080 because I'm following the fundamentals. 136 00:07:13,320 --> 00:07:15,200 Amazon. Amazon's gaining in revenue. 137 00:07:15,400 --> 00:07:17,240 They're gaining, gaining in operating cash flow. 138 00:07:17,240 --> 00:07:20,520 They're gaining in AWS. Like he's actually running the 139 00:07:20,520 --> 00:07:23,160 business really well. The stock price is just the 140 00:07:23,160 --> 00:07:26,440 issue, he says. Quote, we continue to see strong 141 00:07:26,440 --> 00:07:29,560 momentum and growth across Amazon as AI drives meaningful 142 00:07:29,560 --> 00:07:33,000 improvements in every corner of the business, said Andy Jassi, 143 00:07:33,000 --> 00:07:36,400 president and CEO. AWS is growing at paces we 144 00:07:36,400 --> 00:07:41,160 haven't seen since 2022, re accelerating to 20.2% year over 145 00:07:41,160 --> 00:07:43,600 year. That's right, Andy Jassi, lay it 146 00:07:43,600 --> 00:07:46,000 down for him, lay down that 20 plus percent. 147 00:07:46,680 --> 00:07:49,400 Incredible to see him be able to to drop that in an earnings 148 00:07:49,400 --> 00:07:51,960 report. We continue to see strong demand 149 00:07:51,960 --> 00:07:55,160 in AI and core infrastructure and we've been focused on 150 00:07:55,160 --> 00:07:58,960 accelerating capacity adding more than 3.8 gigawatts in the 151 00:07:58,960 --> 00:08:02,640 past 12 months in stores. We continue to to realize the 152 00:08:02,640 --> 00:08:05,440 benefits of innovating in our fulfillment network and we're on 153 00:08:05,440 --> 00:08:08,800 track to deliver to Prime members the fastest speeds ever 154 00:08:08,800 --> 00:08:12,920 again this year, expanding same day delivery of perishable 155 00:08:12,920 --> 00:08:15,680 groceries to over 2300 communities by the end of the 156 00:08:15,680 --> 00:08:19,040 year and double the number of rural communities with access to 157 00:08:19,040 --> 00:08:21,040 Amazon same day and next day delivery. 158 00:08:21,480 --> 00:08:24,800 Now I just want to mention something I've I've gone over 159 00:08:24,800 --> 00:08:28,200 Amazon a number of times and we went over this report. 160 00:08:28,200 --> 00:08:32,200 If you recall, it was a semi analysis report and their 161 00:08:32,200 --> 00:08:36,200 reporting showed that Amazon has a lot of capacity coming online 162 00:08:36,360 --> 00:08:39,159 soon. Their report showed that Amazon 163 00:08:39,360 --> 00:08:42,840 would re accelerate, AWS wouldn't be going down, it would 164 00:08:42,840 --> 00:08:45,800 reaccelerate. They were right their their 165 00:08:45,800 --> 00:08:48,920 analysis was correct. Amazon is reaccelerating and 166 00:08:48,920 --> 00:08:52,480 like we discussed in previous episodes, if they accelerate and 167 00:08:52,480 --> 00:08:54,600 they reaccelerate AWS, the stock's going up. 168 00:08:54,960 --> 00:08:57,920 There's this no way around it. If AWS grows faster and that 169 00:08:57,920 --> 00:09:02,440 narrative of AWS falling behind gets diminished, Amazon stock 170 00:09:02,440 --> 00:09:05,360 will go up. Now, there's other things, and 171 00:09:05,560 --> 00:09:08,160 this report, Amazon's is so long, we can't possibly go 172 00:09:08,160 --> 00:09:10,120 through all of it. It's literally like 20 pages 173 00:09:10,120 --> 00:09:12,480 long. It's just a library of content 174 00:09:12,480 --> 00:09:16,600 that you can go through. But in the report, what I'd be 175 00:09:16,600 --> 00:09:19,480 looking for over the next couple of years with Amazon and what 176 00:09:19,480 --> 00:09:23,360 I'll be paying attention to is, of course, the AWS business is 177 00:09:23,400 --> 00:09:25,120 great and we want to pay attention to that. 178 00:09:25,680 --> 00:09:28,280 But Amazon's solved that. Like that's old news. 179 00:09:28,280 --> 00:09:29,920 That's what Wall Street is focused on. 180 00:09:30,360 --> 00:09:32,800 You don't want to be focused on the exact same thing that Wall 181 00:09:32,800 --> 00:09:36,320 Street is. What we should focus on as 182 00:09:36,320 --> 00:09:39,840 individual investors looking forward with Amazon is the story 183 00:09:39,840 --> 00:09:46,040 of automation, of robotics, of their 1.5 + 1,000,000 employee 184 00:09:46,040 --> 00:09:49,120 workforce. They have an enormous workforce 185 00:09:49,640 --> 00:09:51,200 now. Tesla's great at creating 186 00:09:51,200 --> 00:09:53,480 automation. They're great at robotics, but 187 00:09:53,480 --> 00:09:55,560 Tesla doesn't have as many employees. 188 00:09:55,920 --> 00:09:58,880 Tesla's already highly efficient, Amazon is not. 189 00:09:59,120 --> 00:10:03,280 When it comes to to robotics and automation, Amazon has far more 190 00:10:03,280 --> 00:10:06,520 low hanging fruits to be able to refine their business and raise 191 00:10:06,520 --> 00:10:09,040 margins than Tesla does. And that's because if they 192 00:10:09,040 --> 00:10:12,760 create a robot that can do simple, repetitive tasks, they 193 00:10:12,760 --> 00:10:15,040 have the opportunity to replace millions of employees. 194 00:10:15,040 --> 00:10:18,800 So like a million employees now that sounds terrible. 195 00:10:18,800 --> 00:10:21,880 And it, you know, I hope all these employees find wonderful 196 00:10:21,880 --> 00:10:23,440 jobs. I think they'll find better ones 197 00:10:23,440 --> 00:10:25,640 with other companies that are being started and created. 198 00:10:26,800 --> 00:10:30,440 So that that's one perspective. But as an investor, we have to 199 00:10:30,440 --> 00:10:33,000 look at reality, not how we want things to be. 200 00:10:33,280 --> 00:10:35,920 I'd love for everybody to never lose a job, but this is the 201 00:10:35,920 --> 00:10:38,840 reality that we're working with. Automation is a real thing. 202 00:10:39,080 --> 00:10:42,840 Many jobs will be automated and there's ways that we can benefit 203 00:10:42,840 --> 00:10:45,760 and we can invest accordingly. For companies that will raise 204 00:10:45,760 --> 00:10:48,760 margins over time. I've argued, and I'll still 205 00:10:48,760 --> 00:10:52,200 continue to argue that Amazon is the best equipped to be able to 206 00:10:52,200 --> 00:10:56,480 benefit from ongoing automation. So while these results, I, I 207 00:10:56,480 --> 00:10:59,160 think are exciting and I love seeing the AWS growth. 208 00:10:59,400 --> 00:11:02,960 I love seeing Andy Jassi just dropped that #20 plus percent 209 00:11:02,960 --> 00:11:05,880 growth. Amazon stock is up 8 to 9% right 210 00:11:05,880 --> 00:11:08,320 now. It could go up even further. 211 00:11:08,760 --> 00:11:11,240 The only thing that could take it down is commentary on the 212 00:11:11,240 --> 00:11:14,720 call that that shows a future that's less bright. 213 00:11:14,720 --> 00:11:16,480 Maybe they bring down guidance or something. 214 00:11:16,880 --> 00:11:19,880 But it also could even go higher if they say AWS is going to 215 00:11:19,880 --> 00:11:22,440 continue to accelerate. So investors will be looking at 216 00:11:22,440 --> 00:11:23,720 that. We'll see how it trades. 217 00:11:24,360 --> 00:11:27,880 So overall, again, this this week has been quite the week. 218 00:11:28,240 --> 00:11:30,320 I thought I was having a good week with Google. 219 00:11:30,960 --> 00:11:32,680 To me, that was a massive victory. 220 00:11:33,520 --> 00:11:36,040 You know, as Google investors, we can take a victory lap. 221 00:11:36,080 --> 00:11:38,600 We deserve it. Google investors have have taken 222 00:11:38,600 --> 00:11:41,560 some crap over the past year. There's many big investors 223 00:11:41,560 --> 00:11:43,920 saying that Google is going to fail, that it was the next 224 00:11:43,920 --> 00:11:46,440 Kodak. There were big investors that 225 00:11:46,440 --> 00:11:50,400 said that about Google, not ironically, and here we are. 226 00:11:50,400 --> 00:11:55,360 Google is at all time highs, the company reported yesterday and 227 00:11:55,360 --> 00:11:58,080 it's it's just right up there, right close to its all time 228 00:11:58,080 --> 00:12:02,680 highs, $282 per share or almost 300. 229 00:12:03,360 --> 00:12:06,400 This stock is going above $300. Now. 230 00:12:07,200 --> 00:12:09,720 It's always exciting when a stock goes up that you're 231 00:12:09,720 --> 00:12:12,360 invested in. But I will say, and I'll admit 232 00:12:12,360 --> 00:12:15,680 this selfishly, this one's particularly exciting for me 233 00:12:16,040 --> 00:12:18,040 because I've put my neck out for Google. 234 00:12:18,080 --> 00:12:20,640 I, I've really made a lot of content about this one. 235 00:12:20,960 --> 00:12:24,280 When I figured out that Google was going to win, when I came to 236 00:12:24,280 --> 00:12:27,800 that conclusion months ago, I leaned in big time on this 237 00:12:27,800 --> 00:12:30,280 company. I've believed for months that it 238 00:12:30,280 --> 00:12:33,800 is the best risk adjusted reward company, the best risk reward 239 00:12:34,040 --> 00:12:37,600 stock in the market. I made that message very clear. 240 00:12:38,240 --> 00:12:41,080 And as a content creator, that's a little bit more risky, I think 241 00:12:41,080 --> 00:12:44,120 then even when you just have an individual hidden investment 242 00:12:44,120 --> 00:12:46,960 that nobody else knows about. Because it's not just win or 243 00:12:46,960 --> 00:12:50,040 lose, make money on the stock or lose money on the stock. 244 00:12:50,400 --> 00:12:53,040 For me, it's my brand value, it's my reputation. 245 00:12:53,200 --> 00:12:56,640 It has downstream effects. So if I'm really leaning in on a 246 00:12:56,640 --> 00:12:59,600 company, if I feel really bullish about it, I'm putting my 247 00:12:59,600 --> 00:13:03,520 reputation and long term trust with you at stake. 248 00:13:03,840 --> 00:13:07,840 So I love seeing that pay off. The fact that this has been a 249 00:13:07,840 --> 00:13:11,280 huge winning stock, that's part of the reason why I'm excited 250 00:13:11,280 --> 00:13:13,200 about it. I'll admit it's selfishly 251 00:13:13,200 --> 00:13:15,120 because I just think it's great for my brand. 252 00:13:15,520 --> 00:13:18,280 It's great to have a win. I love winning with stocks and 253 00:13:18,280 --> 00:13:20,520 making money on them. That's just a a selfish 254 00:13:20,520 --> 00:13:23,720 perspective. But the non selfish perspective 255 00:13:23,760 --> 00:13:25,960 and the reason that I'm actually even more excited about this 256 00:13:25,960 --> 00:13:29,440 company doing so well is that when I was invested in company 257 00:13:29,440 --> 00:13:33,360 like Netflix and that one was a big comeback and it had a great 258 00:13:33,360 --> 00:13:35,840 report. It was very exciting for me, but 259 00:13:35,840 --> 00:13:37,440 there weren't that many people to share it with. 260 00:13:37,880 --> 00:13:39,560 I feel like I was alone with Netflix. 261 00:13:39,560 --> 00:13:41,320 Like there's like 10 other people invested in it. 262 00:13:41,320 --> 00:13:43,920 There's really no Netflix investor community. 263 00:13:44,080 --> 00:13:46,600 There's a small one now, but it's it's nothing notable. 264 00:13:47,320 --> 00:13:50,320 The community for Google and the amount of individual investors 265 00:13:50,320 --> 00:13:52,520 like me that are in the stock is massive. 266 00:13:52,960 --> 00:13:54,440 And I like seeing them make money. 267 00:13:54,840 --> 00:13:57,160 It's great when individual investors have a thesis. 268 00:13:57,160 --> 00:14:00,520 They're head of Wall Street, they don't buy into the fair and 269 00:14:00,520 --> 00:14:04,000 the Kodak and that ChatGPT is going to destroy the company. 270 00:14:04,360 --> 00:14:07,480 They stay invested, they build a position and they reap the 271 00:14:07,480 --> 00:14:11,120 rewards. So this is a shared V1 that I 272 00:14:11,120 --> 00:14:13,680 see the community buzzing about. People are making money. 273 00:14:13,920 --> 00:14:17,520 Google's such a fun investment because it's done so well and it 274 00:14:17,520 --> 00:14:19,840 still remains at a reasonable valuation. 275 00:14:20,360 --> 00:14:22,720 So I've gone over the thesis many times and nothing has 276 00:14:22,720 --> 00:14:25,960 really changed with Google. It's just performing exactly how 277 00:14:25,960 --> 00:14:28,720 I expected it to. I made a video earlier this week 278 00:14:28,720 --> 00:14:31,560 saying I think that this earnings report will crush it, 279 00:14:31,880 --> 00:14:35,760 and they did. It wrote up 2.5% on the day into 280 00:14:35,760 --> 00:14:38,200 earnings and it was up another 2 1/2% after earnings. 281 00:14:38,720 --> 00:14:44,120 This stock has been on a tear up 50% year to date and just the 282 00:14:44,120 --> 00:14:46,960 past week. It's up 9%, the past month 15%, 283 00:14:46,960 --> 00:14:50,720 the past three months, 47%. Incredible performance by this 284 00:14:50,720 --> 00:14:54,320 company and there is more to go in terms of where Google sits 285 00:14:54,320 --> 00:14:57,240 now. I think I have like an 80,000, 286 00:14:57,240 --> 00:15:01,640 maybe $85,000 gain in the stock. It's about $170,000 position. 287 00:15:01,640 --> 00:15:03,360 It's the biggest position in My Portfolio. 288 00:15:03,800 --> 00:15:07,040 As of right now. I am not selling a single share 289 00:15:07,800 --> 00:15:10,440 because I've seen what happens when you want to lock in gains 290 00:15:10,480 --> 00:15:13,720 of a big winner. You want to lock in gains, but 291 00:15:13,720 --> 00:15:18,120 big winners happen in most cases because things are going well 292 00:15:18,120 --> 00:15:20,920 for the company. Companies aren't static. 293 00:15:20,920 --> 00:15:23,640 They're not fixed. It's not just a set of numbers. 294 00:15:23,920 --> 00:15:26,760 Companies evolve. They change strategically over 295 00:15:26,760 --> 00:15:28,720 time. They get stronger or they get 296 00:15:28,720 --> 00:15:30,880 weaker. Google's stronger today than 297 00:15:30,880 --> 00:15:34,520 it's ever been before, by far stronger than it's ever been 298 00:15:34,520 --> 00:15:37,400 before. Management can't say it because 299 00:15:37,400 --> 00:15:40,080 they'll be worried that regulators will use that against 300 00:15:40,080 --> 00:15:43,520 them in the future, but I can. I'm not worried about what 301 00:15:43,520 --> 00:15:45,400 regulators are going to say about Google in the future. 302 00:15:45,800 --> 00:15:48,280 This company is stronger today than ever before. 303 00:15:48,520 --> 00:15:50,320 They have more things aligned for it. 304 00:15:50,320 --> 00:15:52,160 There's more things moving in the right direction. 305 00:15:52,480 --> 00:15:56,480 YouTube reached record highs that grew like 14 percent, 15%. 306 00:15:56,880 --> 00:16:00,560 YouTube Premium and Google One subscriptions passed 300 307 00:16:00,560 --> 00:16:03,440 million, an all time high. Waymo's expanding international 308 00:16:04,080 --> 00:16:07,240 Google search grew up 14 1/2 percent, a percent higher than 309 00:16:07,240 --> 00:16:10,120 Wall Street estimates. It's growing super fast, like 310 00:16:10,120 --> 00:16:12,160 Google search is a fast growing company. 311 00:16:12,600 --> 00:16:15,200 Everything we're seeing with Google right now points to a 312 00:16:15,200 --> 00:16:16,680 company that's incredibly strong. 313 00:16:17,080 --> 00:16:19,720 And again, when we look at the valuation, we try to, we try to 314 00:16:19,720 --> 00:16:22,760 be careful and conservative as investors and sell companies 315 00:16:22,760 --> 00:16:25,080 when they get to unreasonable valuations. 316 00:16:25,720 --> 00:16:28,520 For a company with this many bullish catalysts, with this 317 00:16:28,520 --> 00:16:31,640 much strength, this well positioned for the future, with 318 00:16:31,640 --> 00:16:37,920 its own AI models leading the market, is a 27 PE ratio really 319 00:16:37,920 --> 00:16:40,720 that expensive? I argue that it's not. 320 00:16:41,280 --> 00:16:42,640 It's not the cheapest it's ever been. 321 00:16:42,880 --> 00:16:45,360 I don't think Google's cheap per SE, but I also don't think it's 322 00:16:45,360 --> 00:16:47,440 expensive. To me, it's entering into that 323 00:16:47,440 --> 00:16:49,160 category where it becomes a hold. 324 00:16:49,600 --> 00:16:53,120 And if you choose to sell, that's a fine decision. 325 00:16:53,320 --> 00:16:54,920 You're right. You can make your money and you 326 00:16:54,920 --> 00:16:58,440 can exit and look for different opportunities, but opportunities 327 00:16:58,440 --> 00:17:01,400 as good as Google, as good as this company is today, are few 328 00:17:01,400 --> 00:17:03,880 and far between. There's not many companies in 329 00:17:03,880 --> 00:17:05,440 the world. In fact, I think Google's very 330 00:17:05,440 --> 00:17:08,200 unique in the world owning the assets that they own. 331 00:17:09,280 --> 00:17:11,680 There's other investors that wanted to lock in gains when 332 00:17:11,680 --> 00:17:15,480 they made money with Netflix, and you can see what happened 333 00:17:15,480 --> 00:17:17,200 there. You can look over the past five 334 00:17:17,200 --> 00:17:20,960 years, investors wanted to lock in gains from buying it at $200 335 00:17:20,960 --> 00:17:23,800 per share and selling it at 400. They got a double, but they 336 00:17:23,800 --> 00:17:26,640 forgo the gains that they got when it traded the 600. 337 00:17:27,359 --> 00:17:34,360 Now Netflix went from $600.00 U to 900 from 900 U to 1100. 338 00:17:35,080 --> 00:17:38,880 If you sold at the reasonable valuations when the gains had 339 00:17:38,880 --> 00:17:41,280 already been had, you missed out big time. 340 00:17:41,880 --> 00:17:43,960 I hold on to companies that I believe are trading at 341 00:17:43,960 --> 00:17:46,800 reasonable valuations. They have very bright futures 342 00:17:46,800 --> 00:17:48,800 that are getting fundamentally stronger over time. 343 00:17:49,120 --> 00:17:51,760 I sell companies that are getting weaker over time, their 344 00:17:51,760 --> 00:17:55,360 markets getting clouded, and the developments look like they're 345 00:17:55,360 --> 00:17:57,800 going in the wrong direction. The quality overall is being 346 00:17:57,800 --> 00:18:01,440 lowered and with Google, the quality is higher now than ever 347 00:18:01,440 --> 00:18:03,880 before. The valuation is reasonable and 348 00:18:03,880 --> 00:18:08,000 I continue to hold, so I'll have a more in depth report on these 349 00:18:08,000 --> 00:18:10,120 companies. We'll have more content in the 350 00:18:10,120 --> 00:18:11,960 future, especially on Amazon's report. 351 00:18:11,960 --> 00:18:14,000 I'll be diving into that one and the earnings call. 352 00:18:14,560 --> 00:18:16,880 But as of now, I think it's time to celebrate. 353 00:18:17,200 --> 00:18:19,720 We have so many investors that are in Google and Amazon. 354 00:18:20,040 --> 00:18:22,360 Congrats to all of you. You deserve it. 355 00:18:22,640 --> 00:18:25,200 You put your money at risk. If you've worked for your money 356 00:18:25,200 --> 00:18:27,600 and you've invested it, you deserve the gains. 357 00:18:27,600 --> 00:18:29,000 That's going to be it for this time. 358 00:18:29,040 --> 00:18:30,840 Hope you enjoyed, see you in the next one.