Welcome back everyone. Today on the Joseph Carlson
Show, we get into yet another busy week in the stock market.
Last week felt like a year, it felt like.
A long time. Period to invest throughout all
of this chaos. Uncertainty, all these constant
changes in policy regarding tariffs, we've seen the effects
that it's had on the 10 year Treasury commentary from
different businesses and the impact the.
Whipsaw of the stock. Market, well, now we get all of
that, it's continuing on and we're entering into earnings
season. This is where these companies.
Give their report card of what? Happened over the past 90 days
as well as they more importantly give commentary on their.
Views and perspectives. Of the current environment and
what they're expecting over the next 90 days or the next year,
this is where. We get to see.
What companies are saying and this?
Week is very busy if we look at the.
Qualtrum earnings calendar. This shows you day by day,
dynamically which companies are reporting earnings and
information about their earnings.
And here we have on Monday, Goldman Sacks.
That it's already reported. Earnings.
Now I circled some other really important companies.
For example, on Wednesday, this Wednesday we have ASML.
This is one of my key investments, one of my newer
ones. I made a significant bet in
ASML. TSM is also reporting earnings.
On Thursday and we're. Going to see both of them this
week. Their commentary on what to
expect with iPhone demand with chip processing and AI demand.
Everything related to all these. High end companies.
These companies in many ways represent the demand.
That all these big. Tech companies are facing.
So this is an incredibly. Important week with these two
very crucial companies reporting.
And then on Thursday, we also. Have another one thrown in after
market. Close.
We have Netflix. Netflix is one of my most
significant investments. It's a company that I've.
Talked about for years. It's the reason that the Story
Fund is doing so well, and we get to see how.
They're doing and what they expect for the future.
So we're going to dive into the numbers, what the expectations
are, and I'm going to make some predictions overall with this
earnings season of what all these companies are going to
say. I believe there's going to be
some common themes, especially regarding the tariffs and
uncertainty. So I'll be going over just a few
predictions about this earnings season.
Now, of course, we also have some news to get to.
We have an interview here, This one is.
Ray Dalio. He went on to Meet the Press and
I like. This because this.
Is more of a. A territory that's.
Outside of the investment circle, it's not CNBC or Fox
News. Now we're getting to.
Just everyday people, everyday people.
That don't even work with finances.
They're not addicted to looking at the stock market, just normal
people. And then you have Ray Dalio
there. Who's like the most?
Bearish of all the bears. Sitting there just blasting them
with all this incredibly frightening information, Ray.
Dalio I've criticized. Many times as being a mega bear,
a continual bear, he's persistently negative and
concerned and worrying about one thing or the next.
Well, this made it the prime time and this.
Interview went hyper viral. Getting multiple millions of
views just on YouTube. So we're going to be looking
over some of the key arguments he makes.
I'll be responding to some of the things he says.
That are incredibly bearish. On this environment now to
balance out Ray Dalio and his gloomy outlook, we also have to
look at what Tom Lee is doing. He is much more on the bullish.
Side always looking for. Opportunities optimistically and
he's very constructive about what's going on.
So we're going to get the viewpoint of both someone
that's. Overall bearish.
And someone that's bullish. And then finally, one of the
most. Amazing stories I've read.
Is that this? AI shopping app that this guy
made promised that if you buy something from the app, it was
the artificial intelligence going in and buying it from
these random websites. So you could just click on
something you want to buy, you didn't have to do anything else.
The AI would figure it out. But in reality.
It was all powered by. People in the Philippines, this
is one of the most crazy stories.
That I've heard of. And it's just the state.
We're in This story is emblematic and representative of
the. Current state we're in, so we
have a ton to get into in this episode.
It's going to be an interesting one.
Now before we jump in, just one thing I have to mention.
You'll notice that I'm not sponsored by different
companies. I'm not constantly plugging VPN.
Services or audible or whatever. It may be I don't have any of
them as sponsorships and that's an intentional choice.
I could if I wanted to, but instead I focused on building a
product that I think you'll actually enjoy.
Something that I think. Offers a real value.
To investors, that is. Qualtrum Qualtrum is $10 per
month. And the reason that I can
charge. Such a low price for it is I.
Own it outright. There's no other partners, the
team that. Works on it with me.
Is incredibly efficient. Qualtrum costs 1/3 or 1/4 as
much as other. Stock analysis tools and in most
cases does way more than them. You have the insights page.
That gives you all. The fundamentals of a company in
Visual. Format.
Going back 30 years you have KPI's which are key.
Performance indicators of companies like Netflix
subscribers. And revenue by regions?
You have the discounted. Cash flow calculator that's
incredibly simple to use. Earnings call transcript
summaries, you have the earnings calendar and so on and so forth.
It comes with a ton of functionality and it's getting
more powerful every single day. I have my developer working on
this all the time so. If you want to try it out.
I think you'll love it if you join today.
You won't pay anything until the beginning of next month.
And if for some reason if you say, hey, Joe.
I tried it out and I. Accidentally got charged for
some reason. We get free refunds, no
questions asked. We only want people that love
it. And there's a lot of people
that. Do we have over 9?
1000 members on it and it continues.
To grow. So try that.
Out if you haven't now let's go ahead and jump into this week.
We have starting off Monday, a company.
That's already reported. Earnings, which is Goldman
Sachs. For long term investors, we like
a market that's generally not that.
Volatile one that just. Goes up over.
Time, but for day. Traders for short term technical
traders. They love a volatile market.
A surge in trading activity fueled by investor uncertainty
about president. Trump's policies is.
Minting money for Goldman Sachs and other big banks.
The Wall Street. Firm joined at JP Morgan and
Morgan Stanley. In reporting a bigger profit for
the first quarter fueled by record revenue.
In its equities trading and lending unit, banks have been
raking in fees. As investors reposition their
portfolios. In anticipation of how trump's
trades and other economic. Policies might rattle markets,
but in terms of anticipating the future, the commentary of the
CEO. Is one of the ones of many
business leaders saying. That they believe we're.
Going into a recession. Quote The prospects of a
recession have increased with growing.
Indications that economic activity is slowing down around
the. World.
So Goldman Sachs is yet one more voice.
To raise the red flag of a recession.
With the Goldman Sachs CEO saying that there's a higher.
Percentage chance of a. Recession.
I believe this is a good point to jump into some predictions.
I have overall. About this earnings season.
This is broadly. Speaking across the board for
every company, I believe there's going to be a lot of talk about
consumer slowing down. We saw a little bit of.
Evidence of this. Early in the year with Texas
Roadhouse. They noted that last.
Year things were incredibly good.
There is strong. Growth, but going into this year
they saw in the past just couple.
Of weeks. Customers slow down.
Same store sales were flat. They weren't growing.
That was the first red flag of a consumer LED recession.
But that was before the tariffs. Were introduced With the tariffs
being introduced, the level of uncertainty has gone up.
In fact, we have. Some surveys here just over the
past. Couple of weeks showing that
consumer sentiment fell 11% in April.
It's down 30% since December of 2024.
Now if consumer sentiment is falling and customers don't want
to spend money as much as they did, that's going to show up in
the revenue of companies in their bottom line.
So we're going to hear a lot of companies reflect.
That a lot of. CE OS say that consumers are
being more cautious. They're trading down a little
bit, they're wanting to spend a little bit less money, they're
wanting to see more. Deals.
We're going to see a lot of commentary.
About that with every. Company that works.
With consumers, which is. Almost all of them.
Then we also have this theme playing out right now and I
believe something that's changed over just the past couple of
weeks. Since all of this tariff.
Policy has come into play, which is that.
Business leaders. CE OS and investors alike have
become aware. That A.
Small group of people, just a few people in the United States
can rapidly implement. Policy that dramatically changes
the potential. Earnings of companies and their
entire landscape these changes are dramatic, monumental changes
to business prospects, led by someone that can do it at a whim
without any regard to Congress, and someone that has the.
Wherewithal to do it? And face the consequences.
That is a change. In risk assessment, whether
you're pro. Tariff or anti tariff.
This new realization that only a few people can do this so
rapidly into such a great magnitude is a new.
Uncertainty in the market that investors will price.
In. The market is already uncertain.
Stocks are already. Unpredictable to some degree,
but this new adaptation that. Investors have become aware.
Of has raised the. Unpredictability to a whole.
New level now CE OS are. Unsure.
Of how much money they're going to earn over the next three
months, of how well their business is going to do, because
not only do they have to. Project their future growth
based on their business performance.
But they have to. Guess about policy.
Of which they can't possibly know.
They can change day-to-day. So I believe there's going to be
a. Lot of commentary about CE, OS
and CFO saying we just don't know.
We have no clue what the tariff rate will be.
But we can give some vague predictions based on what it may
be. I think there's going to be a
lot of guessing games, a lot of just kind of maybe it's this and
in that case the business might do this, maybe the.
Tariffs are lower. And it's business as?
Usual, but either way. I think CE, OS and business
leaders are going to be negative on the tariffs.
They're going to mention how the cost of them are passed on to
the consumer. They're going to mention how
it's going to slow growth. They're going to mention how
it's going to raise the chances of a recession.
More than they were before the tariffs.
I think we'll have a repeated. Theme of CE OS relaying.
That information to investors just like the.
CEO of Goldman Sachs did now let's go ahead and take a look
at some of these companies individually and breakdown my
expectations for these earnings reports.
First of all, this week we have. A SMLASML is a stock that I have
in the passive income portfolio so it's in my main 1 here and
it's one of the newer position currently the stock.
Is in the red by 8. Percent.
That's $3000 on a 42. $1000 position.
Now stock going into the red soon after you buy it is.
Really not a problem. In fact, if you read Peter
Lynch's. Books.
He talks about how. His best investments happened.
Three years. After buying the stock, that's
usually when he. Saw the best.
Returns from his companies. Was three years after.
I've owned FML for well less than a.
Year so this. One really hasn't had a lot of
time to grow and I'm still very optimistic about this company.
Now if we go to the earnings calendar, ASML reports Wednesday
before market open. We can go to Qualtrum here and
look at the what? To watch for this gives you a
summary of the biggest points to look.
For for each company with ASML in.
Particular this. Company beat on their
expectations big time in Q4, so last quarter they had a
monstrous. Quarter.
It was actually incredible. We see the ASML.
Far surpassed their. Expectations with 9.3 billion.
Dollars of sales last. Quarter, we're going to be
looking to see if they continue momentum or if they say things
are going to. Slow down dramatically.
The other thing that I'm most interested to see in terms of
ASML is not only their commentary on what the demand
outlook looks like. For the different.
Chips and high end things like car chips and phone chips and
whatnot. But I also want to see what they
say in terms of geopolitical. Factors.
Their business in China. How they view the tariffs.
I want to see what they say about all of that coming into
play. I think they'll have overall
optimistic outlook. Investors are going to try to.
Dissect ASML and see whether or not they can see the demand
outlook for artificial intelligence with companies like
NVIDIA, companies like Google, companies like Meta and Amazon
with Asml's report. So this company.
'S report will act like the first.
Weathervane of what direction the AI demand?
Looks like for. All these other companies, the
other. Incredibly important company
reporting. This week as TSM.
A lot of people have asked why I.
Invest in ASML instead of TSM, and Simply put, ASML has even
fewer competitors than TSM does, and TSM is a highly concentrated
monopolistic business. So that gives you an idea of how
monopolistic ASML is. But either way, they're.
Commentary and what investors are going to try to look at.
Is very similar for both of these.
Companies, they're going to look at what the demand outlook is.
For all of these devices. Things like Tesla's and.
Ev's chips. For smartphones and televisions,
you name it, all of that comes through TSM.
Based on their most recent earnings report, TSM noted that
their AI. Accelerator revenue showed
impressive. Growth and that they expect.
It to double. In 2025.
So they've already noted that this form of revenue.
Is going to double and investors are going to see if that's still
the plan, if that's. Still their.
Projection, whether or not that estimate's moving upwards or
down, are staying the same. Overall both.
FML and TSM are. Going to be companies and
investors look at. As the weathervane for big tech
and other big companies, these are going.
To be the first. Ones giving us an indication of
what to expect now, moving on later.
Throughout this week, we get to Thursday after market.
Close and we have Netflix Now let's take a look at my position
in Netflix. This company is one of the.
Larger positions. I've held it in the story fund
for years. I've really liked.
This company for a long period of time and I bought more of it
during the dip which. Really bolstered the performance
of this. Portfolio.
It's made-up for the majority of the games with $51,000 in the
green. Even Amazon OR.
Google or. Microsoft pale in comparison of
buying Netflix during the dip. So of course, Netflix turned out
to be. A great deal buying it in 2022
when it was almost. $200 per share.
The question is, what does it look like Now?
If we look at what to expect from this company, we can take a
look at some of the the key things to look for with Netflix.
Netflix is executing on a lot of things at the same time.
For example, one of them is their advertising tier.
I want to see how many. Users or members they.
Have on their advertising tier. Then we have their content
spending forecast. Netflix has said that.
They've increased their budget a lot.
And they're increasing it to $18 billion from 16 billion.
So they've increased the budget. By $2 billion, that's money they
could have generated in free cash flow, but they're now
producing more and more content. We also have big currency
impacts on this company and their hedging strategy.
Netflix makes over. 50% of their revenue.
Outside of the US, so currency has a big implication on their
earnings and we have the market penetration and price.
Strategy. Netflix has frequently announced
price. Increases on their membership.
During their quarterly reports, so they'll.
Report earnings, then they'll announce a price increase.
They've done that over and over again.
I don't know if they'll announce the price increase this.
Time because they've recently. Done so, but Netflix is a.
Company with substantial pricing.
Power and they've leveraged. This over the past couple of
years. Not only have they.
Increased their budget dramatically, but they've
increased the price of their service as their service.
Value has grown. When I look at Netflix today and
my assumption going into this earnings report, I still love
the company. I still love the stock where it
is today. It's a little bit.
More than where I'd want. To buy it if I was first
entering into a big position. I'd try to buy.
It for around 730. Dollars couple 100 bucks.
Lower than it is today, but even at today's price, I think that
it will beat the market. And the reason why is simple.
When investors look at valuations, they make the same
mistakes. Over and over again.
They look at the multiples of a company without looking at the
growth and I see this same thing.
Over and over again, people say it's crazy.
That Netflix. Trades at a 30. 6 Ford multiple.
Whenever you look at the multiple of a company, you have
to match that with the expected growth of the company.
For example, yes. It's true that Netflix trades at
a 30. 6 multiple. But if we go down and look at
the earnings growth of the company, it also adds in some
context. Over the trailing 12 months,
Netflix has grown their earnings per.
Share. By 65%, so 65% growth.
Is incredibly fast. That's three to four.
Times the average. Of a.
Fast growing company that's 10 times faster than the S&P 500.
So obviously when a company is growing earnings 10 times faster
than the S&P 500, the multiple deserves.
To be a little higher. Netflix's earnings per.
Share has skyrocketed over the past couple of years, so this 35
Ford PE ratio. Could look very expensive.
If the company grew by 6 or 7%. Earnings over the next five
years, but my expectations for Netflix.
Is that it's? Going to grow more in line of
25% earnings per share growth over the next.
Five years. If it does that, it'll still
justify its. Valuation.
Even with the uncertainty in today's market, I believe these
companies will do well. I think ASML is going to have
great earnings. I think that the company is
undervalued. The same thing for TSM and
Netflix. Netflix hasn't gone down as much
because the company is not quite affected.
By tariffs, but I also believe they're going to have very.
Strong earnings. So my expectation going into
this week is even with the. Overshadowing of uncertainty
that earnings reports are going to be.
Good. Now moving on, we get to some
news. That I won't call.
Shocking news, in fact, this is. Probably the most predictable.
News that you could. Ever, ever dream of.
And that is that Ray Dalio is making media rounds predicting
calamity and future economic distress.
Now saying that, Ray Dalio. Is going to predict.
Future calamity and problems and warn about things is like saying
that the ocean is wet. Or that the sun will rise from
the east tomorrow. It's a prediction.
That you can make. With a relative level.
Of confidence. And here we have again Ray Dalio
doing the media tours talking about what may happen in the
future, and this one had millions of views.
Because it had a very catchy tag that Ray Dalio predicts.
Something worse than a recession.
Talking about a recession, do you think it is likely that the
United States will dip into a recession because of President
Trump's tariffs? I think that right now we are at
a decision making point and very close to a recession and I'm
worried about something worse than a recession if this isn't
handled well. A recession is 2 negative
quarters of GDP and whether it goes slightly there.
We always have those things. We have something that's much
more profound. We have a breaking down of the
monetary order. We are going to change the
monetary order because we cannot spend the amounts of money.
So we have that problem. And when we talk about the
dollar and we talk about tariffs, we have that we are
having a profound changes in our domestic order, how ruling is
existing and we're having profound changes in the world
order. Such times are very much like
the 1930s. I've studied history and this
repeats over and over again. So if you take tariffs, if you
take debt, if you take the rising power, challenging the
existing power, if you take those factors and look at the
factors that those changes in the orders, the systems are
very, very disruptive. How that's handled could produce
something that is much worse than a recession.
So here he uses a lot of of words.
Like changing order monetary and managing changing order.
It's a lot of. Euphemisms or abstractions of
what he's really saying. When I listen to this, I think
he's talking about changes to the US.
Reserve currency status. Changes to how businesses are
managed and the. Debt.
How the debt? Is being handled.
The budget deficit can be reduced to 3% of GDP.
It's about it will be about 7% if things are not changed, If it
could be reduced to about 3% of GDP and these trade deficits and
so on are managed in the right way, this could all be managed
very well. I believe that members of
Congress should take the pledge, what I'll call the 3% pledge,
that in one way or another that they will get that budget
deficit down to that number. If they don't, we're going to
have a supply demand problem for debt at the same time as we have
these other problems. And the results of that will be
worse than a normal recession. He's saying this lightly.
What he's talking about as the US literally going bankrupt,
where the interest rate on the US debt becomes so expensive
that. Even if we raise.
Taxes, even if we try to. Tackle it we can't pay for.
It, and the fact that we can't pay for it, means that taking
out. Future debt.
Becomes even more expensive. Because investors don't want to
buy the US debt. Because the credibility goes
down. This is a vicious circle.
This is what the government dramatically needs to avoid, and
in this concern, I share it. Wholly with Ray Dalio.
I think that the US needs to get the budget under control.
I think they need to get it down.
To 3% of. GDP he talks.
About how Congress. Should make a pledge to do this,
but Congress has the opposite incentive of controlling the
debt. Congress's incentive.
For themselves, which everybody? Looks out for #1 right?
Congress's number one incentive for themselves.
Is to get re elected. The way that they get re elected
is by. Promising lots of goodies for
their constituents. That you're going to get your
your thing you want. Hair that we're going to pass a
budget that gets the thing you want hair.
That everybody gets the stuff. They want, nobody wants to pay
on debt. That's not something that every
constituent is calling in and saying, hey, did we pay down the
debt today? That's not a popular item, but
that's exactly what we need to be focused on.
When would Congress ever agree to a rule like that?
It goes against their first incentive.
Which is to protect. Themselves.
Ray Dalio O'Hare realizes. He's on an everyday show with
normal people watching this, so again he uses.
A lot of light. Terms and euphemisms.
And he tries to lightly explain that owning someone else's debt
is only an asset. If they have the ability to pay
it back. The value of money.
What is a store hold of wealth that is a bond.
In other words, one man's debt is another man's assets,
bondholders. And so we're going to be in a
situation where if that store hold of wealth is in jeopardy
because there's too much supply and demand and so on, and we
have a monetary inflation, we will have great disruptions.
And that that could be like the breakdown of monetary System 71.
It could be like 2008. It's going to be very severe.
I think it could be more severe than those imagine if we have
have a downturn politically and and and international conflict.
Very grim potential. Outlook from Ray Dalio Ray Dalio
gives these. Warnings that always get a lot
of attention and a lot of media just like any other.
Predictions of calamity. And one of the things that.
These hosts always do. Like this one does here is she
mentions that. This is the guy that accurately
predicted the two. 1007 financial crisis and while it's
true. That Ray Dalio predicted that.
They don't. Mention that he also predicted
20 different crises before and. After that didn't happen.
Overall, his accuracy in predicting.
Economic calamity is incredibly. Poor.
He almost always is wrong. He rarely ever gets it right.
He's the definition of the clock.
That's broken. That's right, twice a day if a
clock is. Broken and says it's. 6:30 that.
Clock is going to be wrong almost all the time.
Until it's 6:30. And then it will be right for
one minute and that. Is Ray Dalio.
He's almost always. Wrong with his predictions.
You can look. Over his entire history.
And when he finally has something bad happen in the
economy, that's when he's finally.
Right. But overall, these predictions
are highly theoretical. There's a lot.
That the US can do to avoid these type of calamities and
talking about them this way, I think.
Overall is very good. To sell books.
Very good to get. Clicks very good to make it seem
like you can see the future. And you have a bigger thought
process. On this, but in most cases it's
entirely unhelpful to investors in most cases.
The market goes up. In most cases, it's good to stay
invested all the time if we look.
At an investor that's the opposite of Ray Dalio.
Someone that is optimistic, advocates staying in the market,
advocates looking at things through the lens of repair and
recovery. That is Tom Lee.
The reason that Tom Lee is more. Reliable than Ray Dalio is
because statistically. Being in the market all the
time. Is the more accurate.
And better choice than being concerned.
About stocks all the. Time staying out of the market
and trying to predict when there's a market crash coming.
So Tom Lee, statistically. By his.
Bullish stance by always being optimistic.
Will be far more. Correct than Ray Dalio.
He's kind of the inverse of the broken clock.
Tom Lee will be correct. Almost all the time.
Except for a few. So here Tom Lee is once again
talking constructively about how he thinks now is a good time to
buy I. I do think markets are getting a
little desensitized. What I mean, yeah, yeah.
And, and I think part of it is if someone had an investor hat
on, not tactical hat, you know, really good opportunities are
emerging because the number of stocks below the 200 day moving
average hit, it was like 15% historically.
That's a, a strong buy signal. I mean, you're going to find a
lot of bargains there. And the VIX got above 50 and it,
it almost always pays you to buy the stocks when VIX is above 50.
But in the near term, it is a, it's a roller coaster.
I mean, it does feel like we're having a lot of zigs and zags
and even over the weekend. But to me, I think everything
that happened over weekend, including the Sunday, further
explanations, all of this is still unequivocally positive for
stocks. Tom Lee is still undeterred from
owning stocks. He also comments very
specifically on this whole. Idea that people are.
Abandoning the. US that people.
Don't want to do business with the USI?
Think that is the narrative at the moment that you know, US
exceptionalism is over and people are selling treasuries
and dollars to buy other assets. But I'm I'm not in that camp
that it's sustainable because unless weaker dollar and higher
yield suddenly makes the best companies in the world outside
the US, you know, the best and the most important companies in
the world are American companies.
They've produced the best shareholder returns and you know
if you look at the S&P, 40% of the returns of the S&P come from
new companies every 10 years. Is there going to be suddenly
the best new company coming out of Europe instead of the US
because of the dollar? And I doubt it.
And I think U.S. companies are going to adapt.
Tom Lee's logic behind still staying in the US with your
investments makes perfect sense to me.
I agree with it 100% that right now in the world the US has the
best companies. That's almost.
Not even a point to argue. Look.
At all the best companies that give the best shareholder
returns, they're in the United States and even in the future,
you can look. At where risk capital is where
there's investor appetite, where there's people.
Starting new businesses. Entrepreneurs all these
different. Software companies and AI
companies most of that is happening still in the United
states another way of looking at this is Tom Lee's basically
arguing that the United. States if.
It was like a business. It's got a very good economic
Moat, It's a very good quality business and it can endure even
if a leadership. Is doing some crazy.
Things, even if they're just shooting from the hip from time
to time, the business will endure.
So I agree, and my money's going to stay.
Where I believe we have. The best companies in the world,
and most of those are in the United States.
Now, finally, we get to a news. Story here that's just
incredible here's just the title of it the.
AI shopping app found to be. Actually powered by.
Philippines call center workers Now that understates what's
going on a fintech founder in the US has been charged with
fraud after it was. Found that his artificial.
Intelligence Shopping app relied heavily on the Philippines call
center employees to complete the purchases manually.
So the app was. Reportedly.
Marketed as a universal shopping cart app that simplified online
shopping by AI by enabling its. Users to skip.
The checkout on retail. Websites by reducing purchases.
To a single tap. For example, if someone wanted
to buy a their sneakers for instance.
They could just buy the. Sneakers by opening the Nate app
and clicking Buy. The.
App claimed it would take. Care of the remainder of the
checkout. Using AI such as quote
selecting. The appropriate.
Size, entering billing information and shipping
information and confirming the purchase.
So that was the whole premise of this app is.
That you you basically. Have an app, you go in and you
just click on an item, click buy.
You don't have to go through any of the sizing or checkout
options. Artificial intelligence would do
that. For you in truth.
Nate relied heavily on teams of human workers, primarily located
overseas, to manually process transactions in secret.
Mimicking what? Users believed was.
Being done by automation. Hundreds of contractors or
quote. Purchasing assistance in the
Philippines and call. Centers were.
Working to manually. Complete the purchases.
Occurring over the Nate app, the investigation found now the
Department of. Justice tried to estimate.
How much of the actual? Purchases were completed by
Artificial. Intelligence and not humans.
And they said it was around 0%. I would love.
To just ask this. Founder What was the plan here?
When did he? Realize this was.
All going to cave in. He couldn't have fully.
Expected it to work out to. Promise to people was.
All driven by artificial. Intelligence while secretly
having the Philippines complete the.
Purchases. At some point he had a no.
He was way in over his head and the.
The ruse was up, the the jig was up.
This isn't going to work forever.
I'd love to know when that was. So hopefully we get some type of
documentary, something small that explains this in greater
detail, because I'd. Love to get the bigger story.
Behind it, but that's going to be for this episode.
Hope you enjoyed seeing the next one.