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Welcome back everyone. 
Today on the Joseph Carlson 

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Show, we're going to be taking a
look at three different 

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companies, three that you've 
heard about that we're going to 

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do some in depth research and 
this is going to be a little bit

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more in depth than I think 
you're used to. 

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We're going to really dive into 
these companies and try to do 

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some some research of how 
they're going to evolve over the

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next five years. 
Now the companies that we're 

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going to be looking at today are
ones that we've heard about, but

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I think they're worth reviewing.
We have Spotify is number one. 

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We have Uber and we have Google.
We're going to be going over all

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three of them. 
These are three companies I 

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really like. 2 of them I don't 
own, which is Spotify and Uber, 

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and then one I obviously do, 
which is Google. 

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And what we'll be doing here is 
looking at different hedge funds

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research on these companies. 
And I'll be giving you some of 

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my feedback. 
We'll be going through their 

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take on it. 
I'll go through it and give you 

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some commentary and reaction and
whether or not I agree or 

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disagree. 
And we're also going to be 

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looking at the fundamentals of 
these companies, the valuation a

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little bit, and see if these 
companies are opportunities. 

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Because I really think that 
Spotify, Uber and Google are 

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three of the best companies in 
the world and they're really 

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worth looking at. 
Let's go ahead and just take a 

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look at their research and see 
what they say. 

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Spotify continues to be our 
largest position and has been 

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the largest contributor to fund 
performance over the past two 

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years. 
That's like Spotify is like 

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their Netflix for me. 
It's just this one company big 

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position that goes wild. 
The stock was up 71% in the 

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first half after enduring 4 
years of underperformance. 

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Isn't that what you have to 
suffer through? 

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They have these incredible 
returns. 

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You have to suffer through some 
time periods of 

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underperformance, in this case, 
four years of underperformance. 

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Spotify has delivered a 5.7 X 
return or 27.5% annualized since

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we initiated our position 6.5 
years ago. 

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They're doing a little boasting 
care and they deserve it. 27% 

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annualized return from their top
position. 

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Just incredible. 
The core Spotify's thesis is 

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that the spoken word, including 
music is the most undervalued 

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form of communication on the web
by a country mile. 

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The spoken word including music 
is the most undervalued form of 

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communication on the web by a 
country mile. 

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Certainly piques my interest. 
I I'm always very bullish on 

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video entertainment. 
I've I've seen studies that 

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video is more engaging, video 
has more watch time, but they're

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saying spoken word and music is 
more undervalued than video. 

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Very interesting. 
Spotify's business model is to 

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deliver an exceptional search 
and discovery user experience in

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exchange for ownership of your 
real time behavior data and a 

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monthly fee for an ad free 
premium tear. 

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Similar to YouTube and Meta, 
Spotify continues to demonstrate

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that owning consumer attention 
at scale can be more valuable 

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than owning the content being 
consumed. 

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They're pointing out a lot of 
stuff here and This is why I 

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like it. 
It makes me consider things and 

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really reflect on things when I 
read these hedge funds that are 

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pouring tons of resources into 
studying these type of dynamics.

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For example, this is not just 
flowery language saying it's a a

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great company. 
They're pointing out here a 

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couple things that I fully agree
with. 

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Owning the consumer attention at
scale is more valuable than 

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owning the content. 
We've seen that with Netflix. 

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Netflix doesn't have all the 
best content that they own. 

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They have some good content. 
They have Stranger Things, they 

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have Squid Game, they have, you 
know, all these UK shows and 

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South Korean shows. 
They have some good stuff. 

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But, but Netflix also licenses 
content that's better than their

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own content. 
Routinely. 

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They license Warner Brothers 
Discovery, they license Dune, 

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right? 
They license a lot of content 

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that's better than what they 
already own 'cause they got the 

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attention. 
Netflix has the attention. 

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Even if they don't have the, the
content, they have the 

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subscribers and that's what 
matters. 

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The platform of distribution, 
the attention is what matters. 

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And one thing that I strongly 
believe is that analysts, 

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professional analysts in their 
banks, in the high rises in New 

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York City, at working at the 
banks that are underwriting 

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these companies, they believe 
that these type of companies 

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like Spotify, YouTube, Netflix, 
they didn't have a lot of 

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pricing power, that just having 
attention alone doesn't have a 

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lot of pricing power associated 
with it. 

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And that was the total 
absolutely wrong take, totally 

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180° wrong. 
The attention economy has 

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enormous pricing power. 
People will pay for something 

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that they find so engaging that 
they take time out of, out of 

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their busy schedule to consume. 
So in the case of Netflix, 

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Netflix has exercised immense 
pricing power over the past 10 

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years. 
The Netflix Top subscription is 

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like $24.00 a month where 10 
years ago it was 7, right? 

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And then all their plans kind of
go up every single year. 

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We've seen the same with Disney 
Plus. 

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We've seen the same with all 
these attention driven things. 

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Meta just continues to turn out 
more cash every single year just

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based purely on attention. 
Spotify is generating more and 

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more revenue, upping prices over
and over again based on 

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attention engagement, right? 
Attention at scale has enormous 

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pricing power. 
A company that has attention at 

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scale is more important than 
even the content. 

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The platform of distribution is 
more important than the content.

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It is the platform that Netflix 
developed is more important than

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Disney's IP, more important than
Pixar, more important than 

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Lucasfilm and Marvel. 
Just the platform, the 

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attention, the way of 
consumption, and that's what 

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Spotify has figured out as well.
So already there's a couple of 

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things I really like that 
they're pointing out here. 

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I think it rings very true. 
I'll continue on. 

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They say while other platforms 
have been ultra successfully at 

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monetizing video, unlocking the 
value of audio has historically 

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required a different approach. 
Spotify has made enormous 

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progress in closing the 
monetization gap between audio 

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and video, but they're still 
very early on in this journey. 

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Spotify recently got an 
important boost to future 

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earnings power after winning its
years long fight with Apple on 

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June 4th in the US 9th Circuit 
appeals court ruled that Apple 

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must immediately comply with the
judge Rogers April 2025 finding 

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that Apple must allow Spotify to
direct users to external payment

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options. 
Spotify subscription onboarding 

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before the ruling Go Premium. 
You can't upgrade to premium in 

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the app. 
We know it's not ideal. 

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It's a static message, like a 
pamphlet saying go there after 

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the ruling. 
Spotify Premium, play millions 

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of songs ad free and offline. 
Individual duo, family, student 

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has the prices and a big green 
button to get premium right 

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there right in the app while 
bypassing Apple's App Store. 

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Those little differences of how 
easy it is to sign up for a 

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platform, it makes a world of 
difference because if someone's 

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trying to sign up for something 
and they run into any friction, 

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they might bail out halfway 
through the process. 

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As of June 4th, Spotify's 
145,000,000 US users will be 

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able to directly purchase 
anything Spotify wants to sell 

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using a one click link within 
the app, including upgrading the

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premium subscription and audio 
book credits while not paying 

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the App Store 15% commissions. 
I mean that that is really big. 

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Like again, I see this from an 
an owner's perspective, when you

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can reduce the friction of your 
own customers to buy something 

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you're selling, that's a big 
deal. 

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So this is a really bullish 
thing towards Spotify. 

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Direct billing is the next tool 
in Spotify's tool kit to 

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continue unlocking the value of 
the spoken word. 

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The first benefit will be 
lowering churn from a reduction 

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in friction to sign up and 
maintain premium subscribers. 

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Think about this. 
OK, so I'm running Qualtrim and 

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when I run it through Patreon, I
have very limited options of 

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being able to offer anything 
like referrals, you know, 

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campaigns, affiliate marketing. 
I don't have really control 

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over. 
I don't even have people's 

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credit cards saved. 
Like I don't have control over 

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their billing. 
It's harder for me to do refunds

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and all this type of stuff, 
right? 

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I don't have that relationship. 
When we build things directly 

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and we have control over the 
customer, we can do so much 

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more. 
For example, we can reduce churn

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if people sign up directly on 
qualtrum.com in the future. 

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How can we do that? 
We can say if they've been a 

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member for over eight months, 
OK, so they've been like a 

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member for a while. 
If they want to cancel, I can 

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offer them a month for free to 
stay, right? 

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I can say, hey, you want to 
cancel. 

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Would you stick around if we 
give you a month for free to 

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kind of make up your mind? 
And if they click no, they can 

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continue to cancel. 
But I can, I can do stuff like 

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that. 
I can say that if they've been a

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member for eight months, then 
those members that want to 

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cancel, I'll give them a a month
free to try to reduce churn. 

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And even if like 20 or 30% of 
people accept that month for 

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free, maybe that's enough to 
convince them to stick around, 

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right? 
And I'm not saying that's what 

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we're going to do, but those are
just ideas that you can do when 

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you control the customer 
relationship. 

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When you don't, when it's on a 
different platform, you don't 

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have that flexibility. 
So, so Spotify by having control

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over their own customers and 
their own payment system, they 

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can come U with all these super 
like tested mathematical ways to

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lower churn even further, making
it so that they can offer secial

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churn reduction tools like the 
one I just came U with, right? 

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So this is a, a big thing, like 
on scale, this is a massive 

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thing. 
Spotify can now evolve faster 

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into a grown up marketplace 
platform allowing artists, 

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authors, podcasters, creators 
and content owners of all walks 

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of life to directly monetize 
their audiences. 

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Advertising and related revenues
represent only 10% of Spotify's 

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total revenue, or approximately 
€2 billion versus $25 billion 

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for YouTube and 180 billion for 
Meta. 

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With Spotify's user base 
projected to surpass 1 billion 

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over the next 18 months, the 
runway for scaled advertising 

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monetization is substantial at 
roughly 30 times our estimates 

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of 2026. 
EBITDA. 

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Spotify Spotify's valuation is 
optically expensive, as it has 

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been the entire time we've owned
it. 

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However, looking out over the 
next few years, Spotify's $145 

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billion valuation today will 
look cheap if management can 

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keep even close to achieving 
their goals of $20 billion of 

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operating earnings with a 
minimal incremental capital 

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invested. 
Now I'll say Spotify is a 

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company I'm seriously 
considering. 

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I really just want to own it. 
When I look at Spotify, I see a 

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company now at 140 billion, and 
yes, it's far more expensive 

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than it was a couple years ago. 
And that anchoring bias can be 

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very strong. 
The anchoring bias can keep you 

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out of good companies. 
You could say, oh man, I could 

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have bought it for $75.00. 
That's anchoring bias. 

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If you erase all the past and 
you just look at the company 

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now, you have a company at A50 
PE and a 2% free cash flow yield

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in the 50 PE. 
This company went from -5 

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dollars in earnings to plus $6 
in, in two years. 

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That's incredible levels of 
earnings per share growth 

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exercising operating leverage in
terms of the, the free cash 

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flow. 
I mean, look at this, it looks 

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Netflix like it, it looks 
explosive operating leverage 

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out, out of control operating 
leverage with this company, 

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they're growing the free cash 
flow while they're stock based 

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comp and their expenses are 
going down. 

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Incredible to see this. 
The cash is just stacking up 

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with this company. 
Again, incredible to see. 

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You know, it's just all around. 
It's an incredible company, an 

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incredible product. 
You can hate on Spotify just 

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like people hate on Netflix. 
I think the product personally 

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is great. 
It it's global, it's needed, 

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it's consolidated the demand for
audio entertainment. 

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My podcast, in fact, the Joseph 
Carlson Show is picking up steam

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on Spotify. 
Every episode gets thousands and

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thousands of views and listens 
on Spotify. 

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And I think this is a company 
that you could buy and hold for 

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like 10 or 15 years and not 
break sweat, you know, not break

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a sweat over every time they 
have an earnings report, Every 

230
00:11:36,480 --> 00:11:39,080
time this or that happens. 
It's one that I don't think you 

231
00:11:39,080 --> 00:11:41,400
can be too concerned about. 
Now, of course, next, like I 

232
00:11:41,400 --> 00:11:44,680
said, we have Uber. 
Uber is a technology provider 

233
00:11:44,680 --> 00:11:46,720
that connects riders with 
drivers and customers with 

234
00:11:46,720 --> 00:11:49,960
restaurants and food carriers 
operating it's on demand 

235
00:11:49,960 --> 00:11:53,960
platform in over 70 countries 
with more than 170 million 

236
00:11:53,960 --> 00:11:57,240
monthly users. 
As far as quality is concerned, 

237
00:11:57,760 --> 00:12:01,800
Uber operates one of the best 
business models around a network

238
00:12:01,800 --> 00:12:05,280
based marketplace. 
Uber aggregates both the supply 

239
00:12:05,280 --> 00:12:08,680
and demand and transportation 
services at a scale large enough

240
00:12:08,680 --> 00:12:12,640
to give it both a cost and 
service advantage over any would

241
00:12:12,640 --> 00:12:16,280
be competitors. 
Adding to this extensive user 

242
00:12:16,280 --> 00:12:19,320
data enables continuous 
improvement and dynamic pricing 

243
00:12:19,320 --> 00:12:22,720
and utilization algorithms, 
which in turn enhances the value

244
00:12:22,720 --> 00:12:24,800
proposition for both drivers and
riders. 

245
00:12:25,320 --> 00:12:28,960
This combines into powerful 
flywheels where both the product

246
00:12:28,960 --> 00:12:31,960
and the economics of the 
business continuously improve 

247
00:12:32,320 --> 00:12:36,880
with the passage of time. 
As such, what started as a taxi 

248
00:12:36,880 --> 00:12:42,080
alternative has expanded to 
encroach an on car rentals and 

249
00:12:42,080 --> 00:12:46,320
public transportation and now 
even competes with car ownership

250
00:12:46,320 --> 00:12:50,840
among certain demographics. 
So their Tam, the total 

251
00:12:50,840 --> 00:12:54,200
addressable market is just it. 
It's creeping in the different 

252
00:12:54,200 --> 00:12:57,280
categories, constantly expanding
organically in the different 

253
00:12:57,280 --> 00:12:59,120
categories. 
They're doing this without any 

254
00:12:59,120 --> 00:13:02,360
major acquisitions or, you know,
buying their way to success. 

255
00:13:03,080 --> 00:13:05,800
Late last year and into the 
beginning of this year, Uber 

256
00:13:05,800 --> 00:13:09,400
stocks sold off as much as 30% 
due to investors concerns 

257
00:13:09,400 --> 00:13:13,400
regarding autonomous vehicles. 
To start, this theoretical risk 

258
00:13:13,400 --> 00:13:17,280
is mainly applicable to Uber's 
US ride sharing business, which 

259
00:13:17,280 --> 00:13:20,000
accounts for approximately 25% 
of its gross bookings. 

260
00:13:20,400 --> 00:13:23,840
It is hard for a VS to compete 
with food delivery and the labor

261
00:13:23,840 --> 00:13:27,880
cost of low income countries, 
but let's leave that aside for 

262
00:13:27,880 --> 00:13:30,120
now. 
We believe that these concerns 

263
00:13:30,120 --> 00:13:32,160
are misplaced for two main 
reasons. 

264
00:13:32,360 --> 00:13:35,680
One, the time frame for AV 
adoption will be longer than 

265
00:13:35,680 --> 00:13:37,960
expected. 
And two, adoption will 

266
00:13:37,960 --> 00:13:41,040
ultimately be good be a good 
thing for Uber as it will expand

267
00:13:41,040 --> 00:13:42,960
their total addressable market 
considerably. 

268
00:13:43,040 --> 00:13:46,160
While we admit that AV 
technology is advancing rapidly,

269
00:13:46,600 --> 00:13:49,880
broad based commercialization is
expected to be more measured due

270
00:13:49,880 --> 00:13:53,160
to key limitations such as 
achieving consistent superhuman 

271
00:13:53,160 --> 00:13:56,720
safety records, establishing 
harmonized regulatory frameworks

272
00:13:56,720 --> 00:14:00,200
nationwide, scaling the cost 
effective manufacturing and 

273
00:14:00,200 --> 00:14:02,960
developing the on ground 
infrastructure and operations. 

274
00:14:03,320 --> 00:14:06,240
Adding to these issues is the 
highly variable nature of ride 

275
00:14:06,240 --> 00:14:09,240
sharing demand, which fluctuates
massively throughout the day, 

276
00:14:09,320 --> 00:14:12,280
week and year. 
Think vacation destinations. 

277
00:14:12,760 --> 00:14:16,240
This variability and demand 
would make it very hard to build

278
00:14:16,560 --> 00:14:19,160
out a fixed AV fleet that 
maximizes profits. 

279
00:14:19,160 --> 00:14:22,160
Without third party marketplace 
to smooth the volatility. 

280
00:14:22,640 --> 00:14:26,320
That would either undersupply 
and lose customers or oversupply

281
00:14:26,320 --> 00:14:28,400
and lose money. 
Uber can just have their drivers

282
00:14:28,400 --> 00:14:31,440
get on at any busy time. 
What do you do with all these AV

283
00:14:31,480 --> 00:14:33,760
cars when they're not being 
used? 

284
00:14:33,840 --> 00:14:35,480
They just sit in a parking lot, 
right? 

285
00:14:35,480 --> 00:14:37,920
So you have underutilization or 
you don't have enough of them 

286
00:14:37,920 --> 00:14:40,080
during peak hours. 
Said another way, Uber's 

287
00:14:40,080 --> 00:14:43,800
marketplace model with its 
dynamic supply and human drivers

288
00:14:43,800 --> 00:14:47,760
can naturally adjust to peak 
peaks in demand, allowing for 

289
00:14:47,760 --> 00:14:51,080
optimized utilization. 
Therefore, we believe that most 

290
00:14:51,080 --> 00:14:53,840
likely outcome is that 
partnering with existing 

291
00:14:53,840 --> 00:14:56,720
rideshare networks like Uber 
will be the most effective 

292
00:14:56,720 --> 00:15:00,640
solution for AV players to scale
faster, maximize vehicle 

293
00:15:00,640 --> 00:15:04,040
utilization and avoid the 
substantial operating expenses 

294
00:15:04,360 --> 00:15:06,240
of recreating Uber's 
capabilities. 

295
00:15:06,800 --> 00:15:10,600
For #2 If we believe partnering 
with Uber is the best strategy 

296
00:15:10,600 --> 00:15:14,400
for AV providers, then having a 
product that is much better, a 

297
00:15:14,400 --> 00:15:17,000
much better consumer experience 
on Uber's network at a 

298
00:15:17,000 --> 00:15:20,120
significant price step down 
should unlock a lot of new 

299
00:15:20,120 --> 00:15:22,600
business for Uber. 
Consider that today, the most 

300
00:15:22,600 --> 00:15:26,720
penetrated use case for Uber is 
an airport drop off in pickups. 

301
00:15:27,240 --> 00:15:29,640
In a world where a VS make 
ridesharing both cheaper and 

302
00:15:29,640 --> 00:15:32,640
more convenient, we could 
imagine more and more consumers 

303
00:15:32,640 --> 00:15:35,920
forgoing car ownership all 
together, leading to a 

304
00:15:35,920 --> 00:15:38,280
significant acceleration in 
Uber's business. 

305
00:15:38,640 --> 00:15:40,400
So it's basically saying 
they're, they're just saying, 

306
00:15:40,400 --> 00:15:42,240
look guys, you're missing the 
forest from the trees. 

307
00:15:42,800 --> 00:15:45,200
If you're focused on like a VS 
taking a little bit of market 

308
00:15:45,200 --> 00:15:48,040
share here and there in these 
cities, what a VS will do over 

309
00:15:48,040 --> 00:15:51,560
the next 10 years is make it so 
people won't even own cars, 

310
00:15:52,040 --> 00:15:54,720
they'll just have an app and 
Uber will show up. 

311
00:15:54,880 --> 00:15:57,400
And again, we can have anchoring
bias if you, if you missed out 

312
00:15:57,400 --> 00:16:00,280
on these companies here. 
And a lot of cases people say, 

313
00:16:00,720 --> 00:16:03,160
oh, I didn't buy it there, so 
I'm not going to buy it here. 

314
00:16:03,880 --> 00:16:07,320
And then it goes up another 50% 
and then they say, well, I 

315
00:16:07,320 --> 00:16:09,360
didn't buy it here, so I'm not 
going to buy it there. 

316
00:16:09,920 --> 00:16:12,680
The truth is, if a company's 
around for 20 years and it's an 

317
00:16:12,720 --> 00:16:15,160
excellent company, it's going to
be a great investment. 

318
00:16:15,200 --> 00:16:18,080
You could have bought it like a 
long, long time ago. 

319
00:16:18,680 --> 00:16:21,520
I mean, look at Amazon. 
Look at all the time periods you

320
00:16:21,520 --> 00:16:23,560
could have bought this stock. 
So you don't want to have 

321
00:16:23,560 --> 00:16:28,520
anchoring bias. 
It is impossible to consistently

322
00:16:28,640 --> 00:16:32,920
time the bottom in stocks. 
You might get lucky once, but 

323
00:16:32,920 --> 00:16:34,800
then your next buy, you'll not 
time the bottom. 

324
00:16:35,320 --> 00:16:37,760
Nobody's ever consistently timed
the bottom in stocks. 

325
00:16:37,840 --> 00:16:40,480
No one's ever done it. 
What you want to do is make sure

326
00:16:40,480 --> 00:16:43,640
the valuation is reasonable, 
meaning that if you buy it right

327
00:16:43,640 --> 00:16:45,560
now, you have a good future 
expected return. 

328
00:16:46,200 --> 00:16:48,520
The way that the fundamentals 
and the thesis and everything 

329
00:16:48,520 --> 00:16:51,480
plays out today. 
So use the Qualtrim DCF 

330
00:16:51,480 --> 00:16:54,520
calculator, throw in a few 
examples, kind of look at where 

331
00:16:54,520 --> 00:16:57,160
you think, think things will be 
in five to 10 years. 

332
00:16:57,440 --> 00:16:59,280
Is Uber going to be dramatically
bigger? 

333
00:16:59,440 --> 00:17:01,920
Is it really going to continue 
growing this AV demand? 

334
00:17:02,240 --> 00:17:04,800
Are fewer people going to own 
cars in busy places and they're 

335
00:17:04,800 --> 00:17:06,359
just going to use Ubers 
everywhere? 

336
00:17:06,680 --> 00:17:09,560
You know, if that happens, this 
is a fantastic buy today. 

337
00:17:09,560 --> 00:17:11,800
The stock could double over the 
next 5 to 10 years. 

338
00:17:12,240 --> 00:17:15,359
So don't get wrapped up in 
anchoring bias. 

339
00:17:15,960 --> 00:17:19,280
It's always fun, you know, when 
you get crazy games, if you get 

340
00:17:19,280 --> 00:17:22,880
a great company that really gets
gutted like a Netflix or Meta or

341
00:17:22,880 --> 00:17:25,560
Spotify in 2022. 
So you got to take advantage of 

342
00:17:25,560 --> 00:17:28,480
when that happens. 
But again, if you're investing 

343
00:17:28,480 --> 00:17:31,920
for the next 20 or 30 years, I 
think it you're best served to 

344
00:17:31,920 --> 00:17:34,840
just keep building positions in 
great companies, you know, hold 

345
00:17:34,840 --> 00:17:38,240
them through thick and thin, add
to them more when they sell off.

346
00:17:38,280 --> 00:17:39,840
Now finally we get to the last 
one here. 

347
00:17:40,120 --> 00:17:42,440
It's this little company, very 
obscure. 

348
00:17:42,840 --> 00:17:44,280
You might have heard me talk 
about it. 

349
00:17:44,280 --> 00:17:46,600
I think I've mentioned it like a
couple times, a super obscure, 

350
00:17:46,600 --> 00:17:50,080
tiny company. 
OK, it's Google and it's about 

351
00:17:50,080 --> 00:17:52,880
three $3 trillion market cap. 
And we know the investor we're 

352
00:17:52,880 --> 00:17:55,400
talking about today, it's 
Pershing Square Capital. 

353
00:17:55,400 --> 00:17:59,720
We got Bill Ackman in Google. 
I'm happy to be in this one with

354
00:17:59,720 --> 00:18:01,840
Bill Ackman. 
I think he's a great investor. 

355
00:18:02,200 --> 00:18:04,400
I so wish that he held on to to 
Netflix. 

356
00:18:04,840 --> 00:18:08,120
Did you know, just a fun fact, 
had he not sold his Netflix 

357
00:18:08,120 --> 00:18:12,720
position, it would be by far, by
far his biggest position, over 

358
00:18:12,720 --> 00:18:15,520
double the size of any other 
position in his portfolio. 

359
00:18:15,760 --> 00:18:18,320
Regardless, I'm happy that he's 
in in Google. 

360
00:18:18,520 --> 00:18:20,040
I think this one's treating him 
well. 

361
00:18:20,680 --> 00:18:23,040
I think he's going to stick 
around in Google because it 

362
00:18:23,040 --> 00:18:24,720
looks great. 
So I haven't read this again. 

363
00:18:24,720 --> 00:18:26,080
This is going to be just my 
reaction. 

364
00:18:26,080 --> 00:18:28,120
Let's go ahead and jump into 
some Google hair. 

365
00:18:28,280 --> 00:18:31,360
Alphabet, parent company of 
Google is successfully executing

366
00:18:31,360 --> 00:18:34,920
on its vast AI potential. 
The company's key advantages 

367
00:18:34,920 --> 00:18:37,920
stemming from industry leading 
models and full stack approach 

368
00:18:37,920 --> 00:18:41,160
to technical infrastructure, 
including proprietary chips, 

369
00:18:41,200 --> 00:18:44,360
access to high quality data, 
rapidly improving product launch

370
00:18:44,360 --> 00:18:46,760
velocity, and robust 
distribution ecosystems of 

371
00:18:46,760 --> 00:18:50,120
several different apps with over
2 billion users each are 

372
00:18:50,120 --> 00:18:52,760
beginning to meaningfully widen 
Google's mode and competitive 

373
00:18:52,760 --> 00:18:55,880
differentiation and AI. 
That's a mouthful, but I agree 

374
00:18:55,880 --> 00:18:57,480
with everything. 
I mean, look at what they 

375
00:18:57,480 --> 00:19:00,880
outline full stack approach. 
I've been saying the same thing.

376
00:19:01,240 --> 00:19:04,880
Full stack means they got the 
hardware, the infrastructure, 

377
00:19:05,080 --> 00:19:08,400
they got the TP us, the chips. 
They're like, they're, they're 

378
00:19:08,400 --> 00:19:10,080
designed. 
They have like a mini NVIDIA, 

379
00:19:10,080 --> 00:19:12,920
you know, not quite NVIDIA, but 
like a mini NVIDIA with their 

380
00:19:12,920 --> 00:19:15,880
chips. 
They have the models, they have 

381
00:19:15,880 --> 00:19:18,480
Gemini, best model on the market
one of them. 

382
00:19:18,600 --> 00:19:20,720
They have the data scientists 
and engineers. 

383
00:19:21,000 --> 00:19:22,600
And then they have the 
distribution, they have the 

384
00:19:22,600 --> 00:19:26,720
software, they have their reach.
8 out of the top 50 apps or 

385
00:19:26,720 --> 00:19:30,080
Google Apps in the App Store. 
I mean, Google has it all like 

386
00:19:30,080 --> 00:19:31,760
they had the whole world's in 
their hands. 

387
00:19:31,760 --> 00:19:37,320
They have it all robust 
distribution ecosystem, 7 

388
00:19:37,320 --> 00:19:40,160
different apps with over 2 
billion users each. 

389
00:19:41,160 --> 00:19:43,720
This is an incredible, 
incredible company. 

390
00:19:44,360 --> 00:19:49,080
I just look at what we have here
with Google all for a 25 PE like

391
00:19:49,080 --> 00:19:53,400
it's just such AI mean it's you 
get so much for a price that's 

392
00:19:53,400 --> 00:19:56,760
so reasonable. 
In its core search product, the 

393
00:19:56,760 --> 00:20:00,120
company's AI leadership is most 
evident in its broad roll out of

394
00:20:00,280 --> 00:20:03,440
AI powered summary responses 
called AI Overviews, are now 

395
00:20:03,440 --> 00:20:06,320
served to more than 2 billion 
users across 200 countries, 

396
00:20:06,560 --> 00:20:11,320
making it the most widely used. 
Consumer AI product AI overviews

397
00:20:11,720 --> 00:20:14,280
are resulting in users asking 
more detailed questions, 

398
00:20:14,520 --> 00:20:16,800
clicking through at higher rates
and searching with greater 

399
00:20:16,800 --> 00:20:19,200
frequency. 
On the back of AI overview 

400
00:20:19,200 --> 00:20:22,600
success, the company also 
introduced AI mode, which more 

401
00:20:22,600 --> 00:20:26,440
closely resembles a chat like 
user experience directly into 

402
00:20:26,440 --> 00:20:29,000
the search page. 
Beyond the core search 

403
00:20:29,000 --> 00:20:32,200
integrations, the company is 
also having tremendous success 

404
00:20:32,400 --> 00:20:34,600
across its broad consumer app 
portfolio. 

405
00:20:35,040 --> 00:20:38,000
YouTube continues to lead 
streaming watch time in the US. 

406
00:20:38,160 --> 00:20:41,320
YouTube a crown jewel in planet 
Earth. 

407
00:20:41,360 --> 00:20:44,320
They own it and it's leading 
streaming time even above 

408
00:20:44,320 --> 00:20:47,080
Netflix. 
It's leading streaming time with

409
00:20:47,240 --> 00:20:49,720
AI driving meaningful 
improvements to its 

410
00:20:49,720 --> 00:20:53,000
recommendation algorithm, auto 
dubbing and content creation 

411
00:20:53,000 --> 00:20:55,160
tools. 
Many people that are watching 

412
00:20:55,240 --> 00:20:58,360
this very video are doing so in 
like a dozen different 

413
00:20:58,360 --> 00:21:00,000
languages. 
I don't have to pay someone to 

414
00:21:00,000 --> 00:21:01,680
do that because it's now built 
into YouTube. 

415
00:21:01,680 --> 00:21:05,400
Google state-of-the-art video 
generation model VO3 has been a 

416
00:21:05,400 --> 00:21:08,560
viral hit with over 70 million 
videos created since its launch 

417
00:21:08,560 --> 00:21:10,600
in May. 
Last month, the company also 

418
00:21:10,600 --> 00:21:13,040
introduced a new agenda 
capability with AI powered 

419
00:21:13,040 --> 00:21:15,440
calling to local businesses to 
make appointments and 

420
00:21:15,440 --> 00:21:17,680
reservations. 
This is a feature that Google is

421
00:21:17,680 --> 00:21:20,440
uniquely positioned to deliver 
by integrating its search, maps,

422
00:21:20,440 --> 00:21:22,600
calendar and Gmail services for 
users. 

423
00:21:23,200 --> 00:21:26,320
Google's cloud segment, a $50 
billion run rate revenue 

424
00:21:26,320 --> 00:21:30,000
business growing at 30% plus 
rate, is also seeing its AI 

425
00:21:30,000 --> 00:21:32,560
capabilities accelerate product 
differentiation. 

426
00:21:33,480 --> 00:21:37,800
The company signed the same 
number of over 1 billion deals 

427
00:21:37,840 --> 00:21:42,120
in the first half of 2025 that 
they did throughout all of 2024.

428
00:21:42,240 --> 00:21:45,480
Just the first half they signed 
more than all of last year. 

429
00:21:45,560 --> 00:21:49,200
With increasing scale, the cloud
segment has increased from break

430
00:21:49,200 --> 00:21:53,280
even profitability in 2023 when 
they initiated that position to 

431
00:21:53,280 --> 00:21:57,680
a 21% profit margin in the most 
recent quarter with line of 

432
00:21:57,680 --> 00:22:01,600
sight to achieve greater than 
30% profit margins enjoyed by 

433
00:22:01,600 --> 00:22:04,200
pairs. 
By the pairs they mean AWS has 

434
00:22:04,360 --> 00:22:07,480
above 30%. 
Despite tremendous business 

435
00:22:07,480 --> 00:22:11,680
momentum, Alphabet still trades 
at a discounted valuation for a 

436
00:22:11,680 --> 00:22:17,040
business of its quality and 
growth prospects. 100% true. 

437
00:22:17,640 --> 00:22:20,400
It's not even close. 
Again, Google has the whole, 

438
00:22:20,400 --> 00:22:23,640
they have the whole world in 
their hands and it's out of 25 

439
00:22:23,640 --> 00:22:25,360
PE. 
Bill Ackman highlights a lot of 

440
00:22:25,360 --> 00:22:27,520
stuff in this latest research 
that I agree fully with. 

441
00:22:27,920 --> 00:22:30,120
Google's trading at a reasonable
to low valuation. 

442
00:22:30,320 --> 00:22:32,720
I know the stock is up since 
that write up. 

443
00:22:32,960 --> 00:22:35,360
So it's up about $20. 
It doesn't matter. 

444
00:22:35,360 --> 00:22:37,640
Google's still undervalued. 
Look at this stock. 

445
00:22:37,720 --> 00:22:39,920
It has all of that going on, all
this momentum. 

446
00:22:40,160 --> 00:22:42,680
YouTube, it has cloud growing 
30%. 

447
00:22:42,680 --> 00:22:46,320
It has a full stack operations, 
highly diversified, 7 apps with 

448
00:22:46,320 --> 00:22:50,040
over 2 billion users, you know, 
7 apps in the top 50 of Apple's 

449
00:22:50,040 --> 00:22:54,520
App Store and it's at a 2024 
Ford PE ratio. 

450
00:22:54,520 --> 00:22:57,600
It's not the cheapest it's ever 
been, but I still think this one

451
00:22:57,600 --> 00:23:00,440
is just fantastic. 
I have no thoughts of selling it

452
00:23:00,680 --> 00:23:01,920
and I feel like it's in a great 
position. 

453
00:23:01,920 --> 00:23:03,640
So no changes on my thought on 
this one. 

454
00:23:03,920 --> 00:23:05,800
I think Google's still a buy 
today. 

455
00:23:06,200 --> 00:23:08,960
But amongst other great 
companies, I really like Uber. 

456
00:23:09,160 --> 00:23:11,840
I really like Spotify. 
These are three companies that I

457
00:23:11,840 --> 00:23:14,120
mostly agree with the bullish 
stance of these different hedge 

458
00:23:14,160 --> 00:23:15,640
funds. 
I think they're great to own. 

459
00:23:16,160 --> 00:23:17,280
So that's gonna be it for this 
episode. 

460
00:23:17,400 --> 00:23:19,160
Hope you all enjoyed and got 
something out of this. 

461
00:23:19,360 --> 00:23:20,160
See you in the next one.