1 00:00:00,100 --> 00:00:02,300 Welcome back everyone. We have an exciting week ahead 2 00:00:02,300 --> 00:00:03,900 of us. We have some of the biggest 3 00:00:04,000 --> 00:00:06,200 earnings in the market happening this week. 4 00:00:06,500 --> 00:00:09,200 In fact, this is considered the biggest earnings week of the 5 00:00:09,200 --> 00:00:12,700 earnings season and front of us. Now, we have a list of the most 6 00:00:12,700 --> 00:00:16,000 anticipated earnings reports. Lots of big companies here. 7 00:00:16,300 --> 00:00:17,400 And what I've done is, I've gone through. 8 00:00:17,400 --> 00:00:20,400 And I've circled, the ones that I think are the most notable the 9 00:00:20,400 --> 00:00:22,900 ones that I want to go over and give my predictions of. 10 00:00:23,200 --> 00:00:26,200 We just had Coca-Cola, they reported this morning but then 11 00:00:26,200 --> 00:00:29,600 tomorrow we have Verizon McDonald's Spotify. 12 00:00:30,000 --> 00:00:33,800 Microsoft and Google. So two big tech companies and 13 00:00:33,800 --> 00:00:38,200 then we have visa and chipotle. So tomorrow we get to see how 14 00:00:38,200 --> 00:00:39,900 Verizon's doing. I'm going to give some thoughts 15 00:00:39,900 --> 00:00:42,300 on Verizon and a little bit of analysis on it. 16 00:00:42,500 --> 00:00:44,200 We get to see how the food industry is doing with 17 00:00:44,200 --> 00:00:47,400 McDonald's and Chipotle. We can see what spotify's up to. 18 00:00:47,400 --> 00:00:49,500 We haven't looked at that company in a while and then we 19 00:00:49,500 --> 00:00:52,500 have two big tech companies, which these ones really drive 20 00:00:52,500 --> 00:00:55,400 the market. So, tomorrow is a massive day in 21 00:00:55,400 --> 00:00:58,000 the market. Then on Wednesday, we have meta, 22 00:00:58,200 --> 00:01:00,800 another big tech company will See how Matt is doing. 23 00:01:00,800 --> 00:01:05,000 We have Roku and then Thursday's another, massive day Thursday, 24 00:01:05,000 --> 00:01:10,700 we have Amazon Intel Snapchat, MasterCard and Crocs. 25 00:01:11,100 --> 00:01:14,500 So another five, huge companies reporting earnings. 26 00:01:15,100 --> 00:01:18,100 I'm going to be going over all of these and giving my thoughts. 27 00:01:18,100 --> 00:01:21,100 My predictions on what's going to happen and what investors 28 00:01:21,100 --> 00:01:23,200 should have in their mind. Going into these earnings. 29 00:01:23,600 --> 00:01:25,800 So we have a lot to get to. We're going to be reviewing all 30 00:01:25,800 --> 00:01:27,000 of these. I think it's going to be a very 31 00:01:27,000 --> 00:01:29,200 fun video. I'm going to put timestamps with 32 00:01:29,200 --> 00:01:31,700 all the ticker As of the different companies but I hope 33 00:01:31,700 --> 00:01:34,200 you enjoyed the whole video. Okay, now let's go ahead and 34 00:01:34,200 --> 00:01:36,700 Jump Right In the first thing I want to mention is before we get 35 00:01:36,700 --> 00:01:39,400 to the specific companies, I want to share some thoughts 36 00:01:39,400 --> 00:01:41,800 about how I view, earnings reports. 37 00:01:41,800 --> 00:01:45,300 My mind frame going into them. When I first started, investing 38 00:01:45,500 --> 00:01:49,100 the big thing for me that I focused on was what the news 39 00:01:49,100 --> 00:01:52,300 focused on and when you go into earning season, there's a couple 40 00:01:52,300 --> 00:01:55,500 things that the news always focus is on, they focus on 41 00:01:55,500 --> 00:01:58,100 whether or not the company beat its earnings per share 42 00:01:58,100 --> 00:01:59,800 estimates, or whether they missed it. 43 00:02:00,100 --> 00:02:02,600 Whether they beat their revenue estimates or whether they missed 44 00:02:02,600 --> 00:02:06,100 it, every single quarter, a bunch of different analysts, 45 00:02:06,100 --> 00:02:09,000 come up with different analysis of what the EPS will be, and 46 00:02:09,000 --> 00:02:12,900 what the revenue will be, and that forms a consensus EPs, and 47 00:02:12,900 --> 00:02:15,200 revenue estimate. And then the company either 48 00:02:15,200 --> 00:02:18,700 beats that by coming in above those estimates, or they miss it 49 00:02:18,700 --> 00:02:21,800 by coming and Below. Like it's a pass fail, even if 50 00:02:21,800 --> 00:02:25,100 they're really close, but they missed by a couple pennies they 51 00:02:25,100 --> 00:02:28,200 missed the company failed. It was pass fail and they miss 52 00:02:28,200 --> 00:02:29,800 their earnings per share estimates. 53 00:02:29,900 --> 00:02:32,000 So when I first started investing, I'd look at all the 54 00:02:32,008 --> 00:02:35,200 companies in my portfolio and I would see the news that this 55 00:02:35,200 --> 00:02:38,300 company missed its earnings per share estimate and I'd be so 56 00:02:38,300 --> 00:02:41,100 bummed because of that. I think the company is doing 57 00:02:41,100 --> 00:02:43,900 poorly, it's missing its revenue and its earnings per share. 58 00:02:44,200 --> 00:02:46,900 If a company beat its earnings per share, I'd feel so good. 59 00:02:46,900 --> 00:02:50,400 Like my company is doing a great job and that is a totally wrong 60 00:02:50,400 --> 00:02:53,600 way to look at earnings. If you're a long-term investor, 61 00:02:54,000 --> 00:02:57,700 if you're a long-term investor then if the company came in a 62 00:02:57,700 --> 00:02:59,800 few pennies above its earnings per share. 63 00:03:00,500 --> 00:03:03,200 That's not really all that relevant to the long-term story 64 00:03:03,200 --> 00:03:06,700 of the company, the company's margins were 100 basis points 65 00:03:06,700 --> 00:03:10,000 above or below. That's just not that relevant 66 00:03:10,300 --> 00:03:12,600 instead. What long-term investors should 67 00:03:12,600 --> 00:03:17,400 be focused on is the overall story arc of the company. 68 00:03:17,700 --> 00:03:21,400 The overall qualities of the company, the moat the earnings 69 00:03:21,400 --> 00:03:24,600 power, the amount of customers, it can gain the long-term 70 00:03:24,600 --> 00:03:27,700 Investments, the companies, making many of the things that 71 00:03:27,700 --> 00:03:30,900 are short-term are whether or not they beat Quarter by quarter 72 00:03:31,200 --> 00:03:33,100 but long term. We should look at the overall 73 00:03:33,100 --> 00:03:36,200 qualities of a company. So when I'm looking at earnings 74 00:03:36,200 --> 00:03:40,100 season, coming up the type of questions, I'm asking, are not 75 00:03:40,100 --> 00:03:42,800 just if they beat their earnings per share Revenue, but I'm 76 00:03:42,800 --> 00:03:45,100 asking if the company still growing, if it's still 77 00:03:45,100 --> 00:03:48,800 maintaining a moat, if the leadership is still in acting in 78 00:03:48,800 --> 00:03:51,700 a way that's in the long-term benefit of the company, we can 79 00:03:51,700 --> 00:03:53,800 look at different metrics and different Investments That 80 00:03:53,800 --> 00:03:56,400 companies do in order to accomplish those goals. 81 00:03:56,900 --> 00:03:59,100 So that's my thought process going in, it's more of a 82 00:03:59,108 --> 00:04:01,500 long-term approach. And I think that most investors 83 00:04:01,900 --> 00:04:05,000 should not pay so close attention to the earnings per 84 00:04:05,000 --> 00:04:08,300 share estimates and the revenue and base the entire company's 85 00:04:08,300 --> 00:04:11,200 performance on that. Now, having said that, let's go 86 00:04:11,200 --> 00:04:13,600 ahead and Jump Right In. We'll start off and we'll go 87 00:04:13,600 --> 00:04:15,200 left to right throughout this week. 88 00:04:15,400 --> 00:04:17,300 The first one that I want to mention is Coca-Cola. 89 00:04:17,399 --> 00:04:20,399 They just reported earnings this morning and the story of 90 00:04:20,407 --> 00:04:22,900 Coca-Cola is all the same. It's still on track. 91 00:04:22,900 --> 00:04:25,200 Nothing's changed. It has a wide moat has an 92 00:04:25,200 --> 00:04:29,100 incredibly lucrative business. I think it's very difficult to 93 00:04:29,900 --> 00:04:32,200 Dislodge or disrupt Coca-Cola where it is right now. 94 00:04:32,200 --> 00:04:36,000 They do have some competitors with Monster Energy Celsius, Red 95 00:04:36,000 --> 00:04:39,400 Bull, some other companies in the energy drink category, but I 96 00:04:39,400 --> 00:04:41,500 think overall if you're a Coca-Cola investor like Warren 97 00:04:41,500 --> 00:04:44,500 Buffett, you don't feel any need to sell the company right now. 98 00:04:44,800 --> 00:04:47,900 Now there's some other companies on this list. 99 00:04:47,900 --> 00:04:51,600 Starting off Tuesday, we have Verizon reporting their 100 00:04:51,600 --> 00:04:54,200 earnings. And let me bring it up here on 101 00:04:54,200 --> 00:04:56,500 qual trim. Quatrain, by the way, is a 102 00:04:56,500 --> 00:04:58,600 website that I developed. It's part of the patreon 103 00:04:58,600 --> 00:04:59,900 membership, you can try it out for free. 104 00:04:59,900 --> 00:05:01,500 Three. Let's go ahead and plug in 105 00:05:01,500 --> 00:05:03,000 Verizon. Here we have it up. 106 00:05:03,400 --> 00:05:08,200 Verizon is a company. And I've said this for over two 107 00:05:08,200 --> 00:05:11,200 years, straight Verizon's, a company that I believe is a 108 00:05:11,207 --> 00:05:13,700 value trap. I think it's just a 109 00:05:14,000 --> 00:05:18,200 run-of-the-mill value trap. I don't like the investment, I 110 00:05:18,200 --> 00:05:21,000 was invested in it very early when I started off a dividend 111 00:05:21,000 --> 00:05:23,000 investing. And once I learned more about 112 00:05:23,000 --> 00:05:25,900 the economics of companies and what drives intrinsic value 113 00:05:25,900 --> 00:05:29,700 growth and compounding, I sold out of this company, the value. 114 00:05:29,900 --> 00:05:34,100 Trap part of it is that always trades at low multiples and High 115 00:05:34,100 --> 00:05:37,300 free cash flow yields. So trades at a 6.6 percent free, 116 00:05:37,300 --> 00:05:40,200 cash flow yield trades at a PE ratio of a 7. 117 00:05:40,600 --> 00:05:44,000 So it's always decent value. And that's what a value trap is. 118 00:05:44,400 --> 00:05:47,300 You get lured into the good valuation metrics. 119 00:05:47,600 --> 00:05:50,700 And if you just focus on those and you don't look at the other 120 00:05:50,700 --> 00:05:53,500 economics of the company, you realize that you buy into a 121 00:05:53,500 --> 00:05:57,500 company that's going nowhere and gives you very, very battery 122 00:05:57,500 --> 00:06:01,500 turns, over long period of time. We can look at just one piece of 123 00:06:01,500 --> 00:06:04,200 evidence here and I won't spend too much time on this but this 124 00:06:04,200 --> 00:06:08,100 is the free cash flow of Verizon here is a 10 billion dollar. 125 00:06:08,100 --> 00:06:12,300 Mark notice something there. The free cash flow has been the 126 00:06:12,300 --> 00:06:16,300 same since 2002. So they have not improved their 127 00:06:16,300 --> 00:06:20,800 free cash flow growth since literally 2002 over 20 years 128 00:06:20,800 --> 00:06:22,800 ago. No, free cash flow growth. 129 00:06:23,300 --> 00:06:25,200 And then we can just simply look at some other things that they 130 00:06:25,200 --> 00:06:28,300 have changed over time, like the amount of debt we can. 131 00:06:28,300 --> 00:06:31,500 Look at the long-term debt here. And even though their free cash 132 00:06:31,500 --> 00:06:33,600 flow has remained the same there amount of debt has gone up 133 00:06:33,600 --> 00:06:36,600 substantially since then. So overall, I think the company 134 00:06:36,600 --> 00:06:39,700 is becoming less attractive over time, not more attractive. 135 00:06:40,200 --> 00:06:42,900 And personally, when I invest in companies, I'm looking for 136 00:06:42,900 --> 00:06:47,000 companies that can grow their free cash flow by at least 12 137 00:06:47,000 --> 00:06:49,800 percent per year. I want free cash flow per share 138 00:06:49,800 --> 00:06:53,900 growth of around 15% per year. So Verizon my opinion is a value 139 00:06:53,900 --> 00:06:56,400 trap and this is one of the companies that even though 140 00:06:56,400 --> 00:06:59,200 earning Seasons coming up and they have earnings tomorrow. 141 00:06:59,800 --> 00:07:02,300 Even if they beat their earnings and beat their revenue which 142 00:07:02,300 --> 00:07:05,300 they probably will, that does not make it a good investment in 143 00:07:05,308 --> 00:07:07,100 my opinion. I think it's very very poor 144 00:07:07,100 --> 00:07:10,200 investment. Next up, we have McDonald's 145 00:07:10,200 --> 00:07:12,400 here. Let's go ahead and bring up 146 00:07:12,400 --> 00:07:14,900 McDonald's on on quiet room here. 147 00:07:16,200 --> 00:07:19,400 I believe that the restaurant category still going to do 148 00:07:19,400 --> 00:07:22,800 really well. Now I have a hard time saying 149 00:07:22,800 --> 00:07:26,800 this because it's done so well for so long that you believe 150 00:07:26,800 --> 00:07:29,300 there has to be a pullback at some point or another. 151 00:07:29,800 --> 00:07:32,500 But when I look at fast-food lines, when I look at McDonald's 152 00:07:32,600 --> 00:07:36,200 fast-food lines, we have two of them in my city and both 153 00:07:36,200 --> 00:07:40,100 McDonald's are constantly backed up with people in the lines. 154 00:07:40,600 --> 00:07:42,900 What I see is, I see a lot of demand all the time with 155 00:07:42,900 --> 00:07:45,800 McDonald's McDonald's has also been on top of their app. 156 00:07:45,900 --> 00:07:48,400 And they have a great mobile app, they're better at getting 157 00:07:48,400 --> 00:07:50,600 orders out. Consistently, they've improved 158 00:07:50,600 --> 00:07:53,400 the consistency of their food, the Management's doing a great 159 00:07:53,400 --> 00:07:55,600 job. This company is in good position 160 00:07:56,100 --> 00:07:58,500 and I think they're going to have good earnings. 161 00:07:58,500 --> 00:08:00,600 I think that once again the restaurants are going to have 162 00:08:00,600 --> 00:08:02,400 good earnings throughout this year. 163 00:08:02,800 --> 00:08:07,400 So McDonald's would surprise me. It would surprise me if they 164 00:08:07,400 --> 00:08:10,100 came in way below expectations, or they had something go 165 00:08:10,100 --> 00:08:11,500 fundamentally wrong with their business. 166 00:08:11,500 --> 00:08:14,000 This quarter, that would be a shock because I think this 167 00:08:14,000 --> 00:08:18,000 company I think it's fire. On all cylinders McDonald's. 168 00:08:18,100 --> 00:08:20,800 Unlike Verizon would be a company that I'd be happy to be 169 00:08:20,800 --> 00:08:23,300 invested in. I think the company is great. 170 00:08:23,300 --> 00:08:25,300 My problem with McDonald specifically is I think the 171 00:08:25,300 --> 00:08:28,100 company is very expensive for a restaurant. 172 00:08:28,300 --> 00:08:33,000 It's a pretty expensive company. 26 forward, P/E free cash flow, 173 00:08:33,000 --> 00:08:36,299 yield of 2.56. So investors are paying a lot 174 00:08:36,299 --> 00:08:37,900 for McDonald's. Right now, it has very high 175 00:08:37,900 --> 00:08:40,600 expectations. I'm not willing to pay that much 176 00:08:40,600 --> 00:08:43,000 for McDonald's because I have other companies that I think 177 00:08:43,400 --> 00:08:45,600 deserve the cash a little bit more companies that are growing. 178 00:08:45,900 --> 00:08:48,100 A little bit faster. Now after McDonald's, we have a 179 00:08:48,100 --> 00:08:51,500 tech company, which is Spotify, Spotify is a great product. 180 00:08:51,500 --> 00:08:53,800 It's a company that I've used the product for a number of 181 00:08:53,800 --> 00:08:55,600 years. I'm I'm glue to it. 182 00:08:55,800 --> 00:08:59,400 Whenever I try to leave Spotify, I end up coming back and that's 183 00:08:59,400 --> 00:09:02,300 a good sign for the company because you actually have stats 184 00:09:02,300 --> 00:09:06,400 on this over 70% of the people that leave the company Spotify 185 00:09:06,500 --> 00:09:08,300 and try to go to a competing product. 186 00:09:08,500 --> 00:09:12,400 They come back. So it is a very sticky product. 187 00:09:12,600 --> 00:09:16,600 Having said that the problem I have with Spotify is They focus 188 00:09:16,600 --> 00:09:21,600 on all these different kpis, like usership, growth Revenue, 189 00:09:21,600 --> 00:09:25,700 growth growing out there podcast platform, they're growing, but 190 00:09:25,700 --> 00:09:29,200 they're not growing profitably. So even though the company is 191 00:09:29,200 --> 00:09:31,500 getting bigger and bigger and bigger, the economics have an 192 00:09:31,500 --> 00:09:35,600 improved check out this chart here that shows in Orange, the 193 00:09:35,608 --> 00:09:37,200 amount of free cash flow, they generate. 194 00:09:37,500 --> 00:09:40,400 And then in blue, the amount of stock-based compensation, they 195 00:09:40,400 --> 00:09:44,000 do over the past year. They've, they've done more in 196 00:09:44,000 --> 00:09:45,800 stock based compensation done in freak. 197 00:09:45,900 --> 00:09:48,800 Cash flow in, this is for a very mature company. 198 00:09:49,000 --> 00:09:53,400 Spotify, has been around for a long time companies very, very 199 00:09:53,400 --> 00:09:57,500 old and I don't love the idea of owning a company that even 200 00:09:57,500 --> 00:10:00,600 though it gets bigger and bigger and bigger, it never becomes 201 00:10:00,600 --> 00:10:02,700 profitable. It never has any year where it 202 00:10:02,700 --> 00:10:06,000 has any massive profits right now, I'm staying out of that 203 00:10:06,000 --> 00:10:08,800 one. Now, after Spotify, Tuesday on 204 00:10:08,800 --> 00:10:12,500 market closed, we have two massive earnings reports I'd 205 00:10:12,500 --> 00:10:15,700 even say three because visas, that's a pretty big deal but we 206 00:10:15,700 --> 00:10:20,600 have Microsoft, Google, and Visa three massive earnings reports 207 00:10:20,600 --> 00:10:22,600 coming up Tuesday after market close. 208 00:10:22,900 --> 00:10:24,700 Let's go ahead and start off with Microsoft hair. 209 00:10:25,600 --> 00:10:28,600 When I look at Microsoft, I've said this many times before I'm 210 00:10:28,600 --> 00:10:30,700 heavily invested in this company, I think it's the poster 211 00:10:30,700 --> 00:10:33,100 child of a company with great fundamentals. 212 00:10:33,500 --> 00:10:38,000 Having said that Microsoft's business, relies heavily on the 213 00:10:38,000 --> 00:10:41,000 entire economics of the Fortune 500. 214 00:10:41,200 --> 00:10:44,800 So if your Fortune 500 company, you use Microsoft products, one 215 00:10:44,800 --> 00:10:49,200 way or another, you As Microsoft teams use Azure Cloud hosting 216 00:10:49,200 --> 00:10:52,200 use the suite of excel products, and that type of thing, they 217 00:10:52,200 --> 00:10:54,600 have so many different products. They sell business to business. 218 00:10:55,100 --> 00:10:58,400 And the issue for Microsoft that they're facing is that they sell 219 00:10:58,400 --> 00:11:00,400 to all these Fortune 500 companies. 220 00:11:00,800 --> 00:11:03,600 And many of these Fortune 500 companies and even smaller. 221 00:11:03,800 --> 00:11:06,900 Tech companies, they're cutting back their cutting back in the 222 00:11:06,900 --> 00:11:09,300 amount of licenses. They need the amount of seats. 223 00:11:09,400 --> 00:11:12,100 Many of them are doing layoffs and of course, when they do 224 00:11:12,100 --> 00:11:14,800 layoffs, they say, hey Microsoft, we don't need as many 225 00:11:14,800 --> 00:11:18,400 licenses for Excel. We don't need as many licenses 226 00:11:18,400 --> 00:11:20,700 for this Nat. We don't need as much Cloud 227 00:11:20,700 --> 00:11:23,800 hosting. So Microsoft I believe. 228 00:11:24,500 --> 00:11:26,900 I'm not sure on this but I think it might show some weaknesses 229 00:11:26,900 --> 00:11:28,900 quarter. That would be my guess I think 230 00:11:28,900 --> 00:11:31,800 it's going to be tough for them to grow their business and have 231 00:11:31,800 --> 00:11:35,900 a lot of growth when all of their customers and the broader 232 00:11:35,900 --> 00:11:39,800 S&P 500 in the Fortune 500 companies, they're all cutting 233 00:11:39,800 --> 00:11:42,400 back a little bit. So I think Microsoft is trying 234 00:11:42,400 --> 00:11:45,400 to swim upstream. They're fighting an uphill 235 00:11:45,400 --> 00:11:47,100 battle Why? I think it's going to be a very 236 00:11:47,100 --> 00:11:49,900 difficult next three quarters for them. 237 00:11:50,300 --> 00:11:53,700 Now, the history, statistically speaking, Microsoft 238 00:11:53,700 --> 00:11:57,500 statistically beats earnings per share in Revenue all the time. 239 00:11:57,700 --> 00:12:00,900 They beat it, nine times out of ten out of the past 20 or 240 00:12:00,900 --> 00:12:03,300 earnings reports. I believe they beat it like 18 241 00:12:03,300 --> 00:12:06,300 times so they're very good at beating their earnings per share 242 00:12:06,300 --> 00:12:08,800 in Revenue. But again I have my concerns 243 00:12:08,800 --> 00:12:11,800 this time with the way the economy is working and how 244 00:12:11,800 --> 00:12:15,400 businesses are focusing on efficiency and profitability. 245 00:12:15,600 --> 00:12:18,000 And Cutting back on excess. A lot of that. 246 00:12:18,000 --> 00:12:20,000 Cutting back. On excess is cutting back on 247 00:12:20,000 --> 00:12:21,800 Microsoft. So that's my thoughts on it. 248 00:12:21,800 --> 00:12:24,500 I think it might be a weaker earnings report in terms of the 249 00:12:24,500 --> 00:12:27,900 fundamentals of the business and the continued story arc of it, I 250 00:12:27,900 --> 00:12:29,800 believe the moat is still in place. 251 00:12:30,100 --> 00:12:33,600 So even if it goes through a weaker quarter or two, I'm not 252 00:12:33,600 --> 00:12:37,000 concerned about this company. It is incredibly strong, it has 253 00:12:37,000 --> 00:12:40,700 an incredibly wide mode. The economics are incredible 254 00:12:40,700 --> 00:12:43,800 with this company. The profitability, the margins 255 00:12:43,800 --> 00:12:46,700 of it are very consistent. They're even going over time. 256 00:12:47,000 --> 00:12:48,900 They've done such a good job with the company. 257 00:12:48,900 --> 00:12:52,900 So I think Microsoft is just as relevant today, as it was 20 258 00:12:52,900 --> 00:12:55,500 years ago, I think the cloud business is still going to grow 259 00:12:55,500 --> 00:12:58,100 over time. I think they're sweet of Office 260 00:12:58,100 --> 00:13:00,100 products are still very well positioned. 261 00:13:00,200 --> 00:13:03,600 I think that chat GPT the technology behind that and how 262 00:13:03,600 --> 00:13:05,300 they got ahead of Google with that. 263 00:13:05,400 --> 00:13:10,100 I think was incredible, incredible pivoting by 264 00:13:11,300 --> 00:13:13,300 forgetting his name, not Sundar pichai. 265 00:13:13,300 --> 00:13:15,400 He's of Google. What is a Microsoft Satya 266 00:13:15,400 --> 00:13:17,400 Nadella? I think that he did such a good 267 00:13:17,400 --> 00:13:21,500 job, getting ahead of Sundar pichai, so they're taking 268 00:13:21,500 --> 00:13:24,300 different approaches with it. But I really like what Microsoft 269 00:13:24,300 --> 00:13:26,700 is done. I think another weakness 270 00:13:26,700 --> 00:13:28,900 potential in Microsoft's business. 271 00:13:29,600 --> 00:13:33,700 Might be the gaming portion. I still think people are in the 272 00:13:33,700 --> 00:13:37,200 mode of going out, getting out of the house having experiences 273 00:13:37,600 --> 00:13:40,000 and I think it's going to take a while for the pull forward of 274 00:13:40,000 --> 00:13:42,600 covid to work its way out of the gaming category. 275 00:13:42,600 --> 00:13:46,000 So it'll be interesting to see long-term ERM. 276 00:13:46,000 --> 00:13:48,700 I'm very bullish on Microsoft. I'm invested in the company 277 00:13:48,900 --> 00:13:50,200 short term. I think that they're going to 278 00:13:50,200 --> 00:13:52,400 have a little bit of struggle. Now, moving on, of course, we 279 00:13:52,400 --> 00:13:54,700 have Google the other massive big tech company. 280 00:13:54,700 --> 00:13:56,900 Reporting this week. We have it pulled up here, 281 00:13:57,200 --> 00:13:59,600 Google trades at a lower valuation of Microsoft. 282 00:13:59,600 --> 00:14:01,500 So that's why a lot of companies are sorry. 283 00:14:01,500 --> 00:14:04,700 Investors are focused on Google is because the company trades at 284 00:14:04,700 --> 00:14:08,600 a lower valuation. An 18 forward, P/E ratio of four 285 00:14:08,600 --> 00:14:11,200 point two, three percent free cash flow yield. 286 00:14:11,200 --> 00:14:14,700 These are very good valuation metrics, it Paints the company's 287 00:14:14,700 --> 00:14:17,600 being relatively cheap. Right now and I think Google has 288 00:14:17,600 --> 00:14:19,200 created down too much. I think the company is 289 00:14:19,208 --> 00:14:21,800 undervalued, I'm invested in the company personally. 290 00:14:22,200 --> 00:14:25,800 Now a couple notes on Google, Google release, their AI 291 00:14:25,800 --> 00:14:29,900 chatbot, which is Google barred, and investors quickly noticed. 292 00:14:29,900 --> 00:14:33,800 It's not as good as chat GPT. So investors got concerned that 293 00:14:33,800 --> 00:14:36,900 maybe Google doesn't have as much of an edge on AI as 294 00:14:36,900 --> 00:14:39,300 Microsoft does. Maybe they're, they're behind 295 00:14:39,300 --> 00:14:42,800 Microsoft, but then Sundar pichai, just last week, went on 296 00:14:42,800 --> 00:14:46,600 to 60 minutes and he said in that, that Yes, we know it's not 297 00:14:46,600 --> 00:14:49,000 as powerful, but this isn't all we have. 298 00:14:49,000 --> 00:14:52,800 He said, obviously, this is not our most capable chatbot. 299 00:14:53,300 --> 00:14:56,900 They have more powerful chatbots that they have not yet released 300 00:14:57,100 --> 00:15:01,000 and he said that he wanted to basically get people a little 301 00:15:01,000 --> 00:15:04,100 bit used to Bard before doing the next releases because the 302 00:15:04,100 --> 00:15:08,800 next releases are scary powerful, so we don't really 303 00:15:08,800 --> 00:15:11,100 know. But he gave a strong impression 304 00:15:11,100 --> 00:15:14,400 that Google has something much more powerful than Bard, much 305 00:15:14,400 --> 00:15:17,300 more powerful language models, And even ones that are hooked up 306 00:15:17,300 --> 00:15:20,400 to search and internet access, which is different than how 307 00:15:20,400 --> 00:15:24,600 barred operates right now. So basically, it's a long way of 308 00:15:24,608 --> 00:15:27,500 saying that Google might actually still be ahead of 309 00:15:27,500 --> 00:15:31,000 Microsoft and AI, but they just haven't released the tech yet. 310 00:15:31,300 --> 00:15:32,800 We don't know. But that's one of the 311 00:15:32,800 --> 00:15:37,000 assumptions being made here outside of the, a ichat GPT 312 00:15:37,000 --> 00:15:39,700 barred debate. Google has its core products, 313 00:15:39,700 --> 00:15:42,000 which are doing great. I think, out of everything that 314 00:15:42,000 --> 00:15:45,700 I'm going to be looking for on Google's earnings report, the 315 00:15:45,800 --> 00:15:49,500 Thing, I'm going to be looking for, I'll be ignoring the Google 316 00:15:50,200 --> 00:15:53,300 The Google course search. I'll be ignoring YouTube that 317 00:15:53,300 --> 00:15:55,300 stuff is going to be fine. We already know about those 318 00:15:55,300 --> 00:15:59,000 businesses, the thing that I'll be looking at is the cloud 319 00:15:59,200 --> 00:16:02,800 service Revenue. The cloud product, I want to see 320 00:16:02,800 --> 00:16:05,000 that grow. And more importantly, I want to 321 00:16:05,000 --> 00:16:07,500 see the margins improve on that to where it can eventually 322 00:16:07,500 --> 00:16:11,100 become profitable hopefully profitable this year. 323 00:16:11,400 --> 00:16:13,800 If Google Cloud became profitable, that would be a 324 00:16:13,800 --> 00:16:15,700 massive Tailwind for this company. 325 00:16:16,300 --> 00:16:20,400 So far Google has multiple parts of their businesses that are 326 00:16:20,400 --> 00:16:22,200 profitable. They have, the course, search, 327 00:16:22,200 --> 00:16:24,900 they have Android, Dev YouTube, all generating profits. 328 00:16:25,300 --> 00:16:28,100 Then they have their other bets, which is a money furnace. 329 00:16:28,100 --> 00:16:30,900 They burn money in the other bets, then they have Google 330 00:16:30,900 --> 00:16:33,100 cloud. Google cloud is the fastest 331 00:16:33,100 --> 00:16:35,500 growing portion of the business, it's where they've hired the 332 00:16:35,500 --> 00:16:39,000 most new employees where they put the most new capital in and 333 00:16:39,000 --> 00:16:43,000 it's not yet profitable. So once that gets profitable, 334 00:16:43,200 --> 00:16:45,600 that is another entire pillar of their business. 335 00:16:45,800 --> 00:16:48,800 It's more important than YouTube that will suddenly become 336 00:16:48,800 --> 00:16:51,900 profitable and be a Tailwind with growing profits year over 337 00:16:51,900 --> 00:16:53,700 year. So that's what I'm gonna be 338 00:16:53,708 --> 00:16:56,300 looking for. When I look at Google's report, 339 00:16:56,300 --> 00:16:59,900 I'll be looking over the other stuff but the cloud is by far 340 00:16:59,900 --> 00:17:03,300 the most important story line right now with this company, I 341 00:17:03,300 --> 00:17:06,000 think that Google's earnings are going to be good, I think they 342 00:17:06,000 --> 00:17:08,200 will be, I think YouTube has been doing well. 343 00:17:08,200 --> 00:17:09,700 I think Google search has been doing well. 344 00:17:10,000 --> 00:17:13,000 I don't think that chat gbt is taking massive market share from 345 00:17:13,000 --> 00:17:16,400 search or anything like that but again, my Kiss when I'm looking 346 00:17:16,400 --> 00:17:17,800 at Google, it's going to be Google Cloud. 347 00:17:17,800 --> 00:17:21,900 I'm hoping at the margins, go up and that it loses less money, 348 00:17:22,099 --> 00:17:24,000 this quarter than it did the previous quarter. 349 00:17:24,400 --> 00:17:26,800 It's not going to be profitable this quarter but I want to see 350 00:17:26,800 --> 00:17:29,700 the losses decrease and accelerated rate, so it gets 351 00:17:29,700 --> 00:17:31,400 closer and closer to profitability. 352 00:17:32,200 --> 00:17:34,400 So Microsoft and alphabet. Those are going to be two big 353 00:17:34,400 --> 00:17:36,400 ones. The next big one is going to be 354 00:17:36,400 --> 00:17:38,300 Visa. Now if we think about how Visa 355 00:17:38,300 --> 00:17:42,600 reacts Microsoft is a weather vane for corporate spending, if 356 00:17:42,600 --> 00:17:44,800 corporate spending is doing well, and the business world is 357 00:17:44,800 --> 00:17:46,900 doing well in growing. And Microsoft's earnings are 358 00:17:46,900 --> 00:17:50,700 going to grow Visa is similar but with consumer spending so 359 00:17:50,700 --> 00:17:54,000 it's a weather vane for the overall consumer economy and how 360 00:17:54,000 --> 00:17:56,500 much we're spending. I think their earnings are going 361 00:17:56,500 --> 00:17:58,100 to be good. I think they're going to meet 362 00:17:58,100 --> 00:18:00,300 their expectations or be right in line with them. 363 00:18:00,700 --> 00:18:04,300 I believe the company right now is a high-quality compounder 364 00:18:04,300 --> 00:18:06,300 that has a lot of continued. Growth ahead of it. 365 00:18:06,500 --> 00:18:09,200 Visa has a natural hedge against inflation. 366 00:18:09,400 --> 00:18:11,600 As inflation goes up, consumers, spend more money. 367 00:18:12,000 --> 00:18:14,900 They already hedge against that and the company right now, I 368 00:18:14,900 --> 00:18:16,300 think trades at a good. You're Wastin. 369 00:18:16,300 --> 00:18:19,700 So there's not too much baked into the price already, in my 370 00:18:19,700 --> 00:18:22,900 opinion, with this company. So the earnings report for Vis, 371 00:18:22,900 --> 00:18:25,000 I think will be very simple. I think the earnings will be 372 00:18:25,000 --> 00:18:27,600 good, I think consumer spending is going to be very strong. 373 00:18:27,900 --> 00:18:30,200 You'll probably see even headlines up being stronger than 374 00:18:30,200 --> 00:18:32,600 expected, but I wouldn't bet on this. 375 00:18:32,600 --> 00:18:34,700 This is just my prediction. I can't see the future. 376 00:18:35,000 --> 00:18:37,200 Maybe I could be wrong. Let's go ahead and move on to 377 00:18:37,200 --> 00:18:39,600 Chipotle hair. Now, we have Chipotle brought up 378 00:18:39,600 --> 00:18:43,100 here, ticker symbol CMG, and this company trades, if you can 379 00:18:43,100 --> 00:18:46,600 see it, there, let me zoom in a bit at Thousand eight hundred 380 00:18:46,600 --> 00:18:49,700 dollars per share. The stock price has really gone 381 00:18:49,700 --> 00:18:51,500 up and they haven't done any stock split. 382 00:18:51,500 --> 00:18:53,400 So it's trading at a very high valuation. 383 00:18:53,700 --> 00:18:58,300 The valuation right now is that a PE ratio of 35 and a free cash 384 00:18:58,300 --> 00:19:01,000 flow? Yield of 1.7, which fills too 385 00:19:01,000 --> 00:19:04,200 expensive when you first glance at this company, it feels too 386 00:19:04,200 --> 00:19:09,500 expensive, but keep in mind, this PE ratio of 35 is the same 387 00:19:09,700 --> 00:19:12,900 as it was five years ago. So the PE Ratio hasn't changed 388 00:19:12,900 --> 00:19:14,500 all that much or the past five years. 389 00:19:14,800 --> 00:19:17,200 But the stock prices, Up hundreds and hundreds of 390 00:19:17,200 --> 00:19:18,800 percentages over the past five years. 391 00:19:19,200 --> 00:19:22,300 This has been a wonderful investment an incredibly strong 392 00:19:22,300 --> 00:19:25,000 company to invest in. This is one of bill ackman's 393 00:19:25,000 --> 00:19:27,700 main Holdings and one of the ones that he was most notably 394 00:19:27,700 --> 00:19:30,600 public about. And no matter what you think of 395 00:19:30,600 --> 00:19:33,300 Bill Ackman, he got chipotle, right? 396 00:19:33,400 --> 00:19:35,200 He really nailed this investment. 397 00:19:35,500 --> 00:19:39,500 This shows you that again. A lot of investors are focused 398 00:19:39,700 --> 00:19:42,600 on the next quarter. What's going to be the earnings 399 00:19:42,600 --> 00:19:43,900 per share, what's going to be the revenue? 400 00:19:44,100 --> 00:19:46,900 What is the PE Ratio? That's East on next year's 401 00:19:46,900 --> 00:19:49,100 earnings. These are all quarterly 402 00:19:49,300 --> 00:19:52,500 short-term viewpoints. And I did a video on this where 403 00:19:52,500 --> 00:19:55,800 I went into an interview that Bill Ackman had years and years 404 00:19:55,800 --> 00:19:58,000 and years ago. This was all the way back in 405 00:19:58,000 --> 00:20:02,500 2017, 2017 to put that in perspective. 406 00:20:02,800 --> 00:20:04,800 During the time of this interview that I'm going to show 407 00:20:04,800 --> 00:20:08,700 you a Chipotle was trading as a seven billion dollar company. 408 00:20:09,100 --> 00:20:12,800 Now, it's a fifty billion dollar company so the interview was 409 00:20:12,800 --> 00:20:14,600 seven billion dollars. It's currently trading at a 410 00:20:14,608 --> 00:20:16,500 fifty billion dollar. Valuation. 411 00:20:16,800 --> 00:20:19,300 Let's go ahead and take a look at some of this the summer. 412 00:20:19,300 --> 00:20:22,000 Just the parts of this interview that I think stand out well 413 00:20:22,000 --> 00:20:25,300 Chipotle Bill. If we could sure she has got 414 00:20:25,300 --> 00:20:27,300 crushed again last week on earnings. 415 00:20:27,400 --> 00:20:30,300 Yeah. What makes you still convinced 416 00:20:30,300 --> 00:20:31,400 that you can turn this thing around? 417 00:20:31,800 --> 00:20:33,900 So we're early. We joined the board in the last 418 00:20:33,900 --> 00:20:38,300 year and we're going to work hard to make it helped the 419 00:20:38,300 --> 00:20:41,100 company turn, but it's working this work to do for sure. 420 00:20:41,200 --> 00:20:44,100 Okay, so he says that there's work to do with the company and 421 00:20:44,100 --> 00:20:49,600 again, this was back in 17, the stock price of Chipotle was $275 422 00:20:49,900 --> 00:20:53,700 currently 1800 dollars. So, there was a lot of work to 423 00:20:53,700 --> 00:20:56,200 do, and it seemed to work out really well for him, but I want 424 00:20:56,200 --> 00:20:59,000 you to listen to part of the debate here of what the other 425 00:20:59,000 --> 00:21:01,500 investors are focused on the gang here. 426 00:21:01,500 --> 00:21:05,300 Today, Josh, you been - on AAA Steve. 427 00:21:05,400 --> 00:21:08,500 You've been - on AAA suggesting that there's no reason why this 428 00:21:08,500 --> 00:21:09,900 stock can't continue to go lower. 429 00:21:09,900 --> 00:21:12,600 I love the, by the way, I love the restaurant. 430 00:21:13,100 --> 00:21:16,900 I just think I just think there was a You can about the company 431 00:21:17,000 --> 00:21:21,200 and sometimes the magic wears off and once it wears off, then 432 00:21:21,200 --> 00:21:23,700 people say okay, it's quick service restaurant. 433 00:21:23,800 --> 00:21:25,800 Why am I paying 30 times earnings for it? 434 00:21:25,900 --> 00:21:28,900 Why would investors pay 30 times earnings for Chipotle back in 435 00:21:28,908 --> 00:21:31,900 2017? That's the problem with focusing 436 00:21:31,900 --> 00:21:35,100 on the short-term earnings estimates, is they only show you 437 00:21:35,100 --> 00:21:36,900 what's going to happen over the next couple of months. 438 00:21:37,200 --> 00:21:39,500 They do not tell you how the story arc of a company's going 439 00:21:39,500 --> 00:21:42,700 to be over the next five years. And this is what everyone was 440 00:21:42,700 --> 00:21:44,700 focused on. What is the PE ratio of the 441 00:21:44,700 --> 00:21:46,400 company? What our next year's earnings 442 00:21:46,400 --> 00:21:48,800 next quarter's earnings, the current multiple of the company. 443 00:21:48,900 --> 00:21:50,800 None of them. Look at it, through the lens of 444 00:21:50,800 --> 00:21:53,200 a long-term story arc. They look at it through the lens 445 00:21:53,200 --> 00:21:56,000 of next quarterly. Earnings how much you paying for 446 00:21:56,000 --> 00:21:58,600 that in the current multiple? I mean, it's still a skit about 447 00:21:58,600 --> 00:22:00,900 with the stocks done that and that doesn't really matter. 448 00:22:00,900 --> 00:22:03,600 What matters is one of the earnings done and what's the 449 00:22:03,600 --> 00:22:08,000 valuation and a 30 x, next year, giving the benefit they hit 450 00:22:08,000 --> 00:22:11,600 their target for once first time in three years, it's still very 451 00:22:11,600 --> 00:22:13,700 expensive. In a competitive space, I would, 452 00:22:13,800 --> 00:22:17,600 it was $275 and Very expensive, very expensive. 453 00:22:17,600 --> 00:22:20,000 At that time. And notice how Bill Ackman does 454 00:22:20,000 --> 00:22:22,600 not focus on the current multiple he focuses on the 455 00:22:22,608 --> 00:22:26,100 long-term story arc, probably the opportunities in the stock 456 00:22:26,100 --> 00:22:28,700 market are created because most investors are focused on what 457 00:22:28,700 --> 00:22:30,500 our next year's earnings going to be, what's an appropriate, 458 00:22:30,500 --> 00:22:32,900 multiple? And first story like this, when 459 00:22:32,900 --> 00:22:34,700 we're company's been through what they've been through sales 460 00:22:34,700 --> 00:22:36,300 of gone from Two and a half to two million. 461 00:22:36,600 --> 00:22:38,200 The right way to look at in our view is not just about a 462 00:22:38,200 --> 00:22:40,100 multiple next year. You're like, okay, what's a 463 00:22:40,100 --> 00:22:42,800 reasonable trajectory for a recovery and what will the 464 00:22:42,800 --> 00:22:45,400 earnings be two years out for years out? 465 00:22:45,600 --> 00:22:47,900 Years out and then discount those earnings back in time on 466 00:22:47,900 --> 00:22:50,500 that basis. It's a very cheap stock, if they 467 00:22:50,500 --> 00:22:51,800 can perform. So that's the biggest 468 00:22:51,800 --> 00:22:53,800 distinction there. While all of them are focused on 469 00:22:53,800 --> 00:22:55,300 next. Quarterly report, the next 470 00:22:55,300 --> 00:22:58,000 earnings Ackman is focused on the long-term storyline of the 471 00:22:58,008 --> 00:22:59,700 company. So I think that's important to 472 00:22:59,708 --> 00:23:02,300 keep in mind, instead of focusing on just the current 473 00:23:02,300 --> 00:23:04,500 multiple, just the free cash flow yield. 474 00:23:04,700 --> 00:23:06,800 Look at the qualities of the business and how things will 475 00:23:06,800 --> 00:23:08,400 develop over. The next five years, it has a 476 00:23:08,408 --> 00:23:12,200 much bigger determining Factor. So right now the multiple is 477 00:23:12,200 --> 00:23:15,500 around the same for Chipotle's that was back in 2017. 478 00:23:15,900 --> 00:23:18,000 We look at the performance since then it's up. 479 00:23:18,100 --> 00:23:22,100 Well, over 500 percent. This goes back to 2018 back in 480 00:23:22,100 --> 00:23:25,600 2017 was right here at the lowest point to be buying the 481 00:23:25,600 --> 00:23:29,000 company, two hundred and seventy three hundred dollars per share. 482 00:23:29,000 --> 00:23:32,000 Now, with my expectations going forward with Chipotle, I think 483 00:23:32,000 --> 00:23:33,500 they're going to have good results. 484 00:23:33,500 --> 00:23:36,900 I think just like McDonald's, I'm expecting the food industry, 485 00:23:36,900 --> 00:23:39,900 the quick service restaurant industry to do really well 486 00:23:39,900 --> 00:23:42,200 overall. So Chipotle is one that I'm 487 00:23:42,200 --> 00:23:43,900 bullish on. I think it's going to do great. 488 00:23:43,900 --> 00:23:46,400 I look forward to the earnings It's going to be on my watch 489 00:23:46,400 --> 00:23:48,700 list. If we do have a sell-off, if we 490 00:23:48,700 --> 00:23:52,300 have investors panic because of a slow quarter, I just might 491 00:23:52,300 --> 00:23:54,700 jump into that one. Now, moving on from Chipotle, we 492 00:23:54,700 --> 00:23:57,600 have another giant company reporting earnings, which is 493 00:23:57,700 --> 00:24:00,200 meta, another big tech company here. 494 00:24:00,200 --> 00:24:02,600 Let's go ahead and type this one in here. 495 00:24:03,200 --> 00:24:06,200 Mehta has always been around The Narrative of the company. 496 00:24:06,200 --> 00:24:09,000 That's what's been driving this company stock price performance. 497 00:24:09,500 --> 00:24:13,200 Now, we have a story here. I used to own meta, I sold out 498 00:24:13,200 --> 00:24:15,200 of the company at a very favorable time. 499 00:24:15,700 --> 00:24:18,900 Right around here, I sold out of the company because Mark 500 00:24:18,900 --> 00:24:22,200 Zuckerberg was talking about the metaverse. 501 00:24:22,200 --> 00:24:25,100 That's all he was focused on here was the metaverse. 502 00:24:25,600 --> 00:24:27,700 He is talking about all the Investments, they're making in 503 00:24:27,700 --> 00:24:30,200 the new goggles are coming out with and all the he was coming 504 00:24:30,200 --> 00:24:33,000 out with videos and advertisements and promos for 505 00:24:33,000 --> 00:24:36,100 the metaverse and talking about how he's going to sink a lot of 506 00:24:36,100 --> 00:24:40,900 money into this metaphors, and the ROI on this money is very 507 00:24:40,900 --> 00:24:43,500 unknown. So obviously investors did not 508 00:24:43,500 --> 00:24:45,500 like all of this discussion around. 509 00:24:45,600 --> 00:24:49,600 The metaverse the stock price completely plummeted over the 510 00:24:49,600 --> 00:24:53,100 following year. And what did Mark Zuckerberg do? 511 00:24:53,500 --> 00:24:55,600 He had a choice there, he could continue to talk about the 512 00:24:55,600 --> 00:24:58,200 metaverse ad, nauseam and talk about how he's investing more 513 00:24:58,200 --> 00:25:01,500 and more money there but he made a huge pivot. 514 00:25:01,500 --> 00:25:04,100 Once the stock price, it an ultimate low a couple weeks 515 00:25:04,100 --> 00:25:07,400 later Mark Zuckerberg came out with a letter, you publish a 516 00:25:07,400 --> 00:25:11,000 letter saying that he was optimizing the business and the 517 00:25:11,000 --> 00:25:13,400 letter really did not mention the metaverse at all. 518 00:25:13,600 --> 00:25:15,500 This letter was a complete pivot. 519 00:25:15,700 --> 00:25:19,900 A 180-degree turn from all of the talk of the metaverse now, 520 00:25:19,900 --> 00:25:23,200 he was focused on profitability laying off, employees of the 521 00:25:23,200 --> 00:25:25,700 company. Doing a different layout of the 522 00:25:25,700 --> 00:25:28,000 management structure to have less managers and more people 523 00:25:28,000 --> 00:25:30,300 working at the company doing the Hands-On stuff. 524 00:25:30,500 --> 00:25:35,800 He talked incessantly about cost structure and optimization after 525 00:25:35,800 --> 00:25:38,600 doing that. The company had a huge rally 526 00:25:38,800 --> 00:25:42,300 back to $200 per share. It's not back to where it was in 527 00:25:42,300 --> 00:25:45,500 2021, is things were getting out of control, but it's had a huge. 528 00:25:45,600 --> 00:25:47,800 Huge rally up 100 percent from its lows. 529 00:25:47,800 --> 00:25:50,100 So it's gone through this dramatic pivot and the stock 530 00:25:50,100 --> 00:25:54,300 prices run back up to where it now has a PE ratio of 15, a more 531 00:25:54,300 --> 00:25:57,600 average value where it's neither really undervalued or really 532 00:25:57,600 --> 00:26:00,600 overvalued at this point. And it has a free casual yield 533 00:26:00,600 --> 00:26:03,700 of 3.4 1%. So I know a lot of met investors 534 00:26:03,700 --> 00:26:06,400 bought into the company when it was dipping are now taking 535 00:26:06,400 --> 00:26:07,700 gains. Many of them are moving on to 536 00:26:07,700 --> 00:26:10,200 different positions. Now, my thoughts on meta, first 537 00:26:10,200 --> 00:26:14,800 of all, I'm a little bit biased against meta because I don't 538 00:26:14,800 --> 00:26:18,600 like, so, Media companies overall all that much, I don't 539 00:26:18,600 --> 00:26:20,300 like the industry. I don't like Pinterest that 540 00:26:20,300 --> 00:26:22,600 much. I don't like Snapchat and I 541 00:26:22,608 --> 00:26:25,200 don't love Instagram and Facebook that much. 542 00:26:25,200 --> 00:26:27,700 I just don't love the industry all that much. 543 00:26:27,700 --> 00:26:29,100 I think it has a lot of problems. 544 00:26:29,100 --> 00:26:31,100 There's always the legality issues. 545 00:26:31,200 --> 00:26:34,300 They're always being called in front of Congress and then they 546 00:26:34,300 --> 00:26:37,100 have ADD problems and there's all different things with it. 547 00:26:37,300 --> 00:26:39,300 So I'm a little bit biased against this industry. 548 00:26:39,600 --> 00:26:41,700 I've invested in meta before I made a little bit of money on 549 00:26:41,700 --> 00:26:44,900 the company, but I was never a huge holding when I look at the 550 00:26:44,900 --> 00:26:47,200 company that Challenges. They're facing one of the 551 00:26:47,200 --> 00:26:49,500 biggest ones is the cost structure of the company. 552 00:26:49,800 --> 00:26:52,600 You can see the problem here with the growing amount of 553 00:26:52,600 --> 00:26:56,100 stock-based compensation, like every Big tech company meta 554 00:26:56,100 --> 00:26:58,600 faces this as well. And I think this is a challenge 555 00:26:58,600 --> 00:27:00,800 for the company. So I think what investors should 556 00:27:00,800 --> 00:27:03,500 be focused on with these upcoming earnings is looking at 557 00:27:03,500 --> 00:27:06,200 the cost structure. Looking at the, the amount of 558 00:27:06,200 --> 00:27:08,300 stock-based compensation compared to the amount of free 559 00:27:08,300 --> 00:27:11,400 cash flow, and compared it to the amount of capex Investments, 560 00:27:11,700 --> 00:27:13,800 we should see stock-based compensation. 561 00:27:14,100 --> 00:27:16,500 Start to fall a little bit. Has he been doing these 562 00:27:16,500 --> 00:27:19,400 aggressive layoffs? And we should also see free cash 563 00:27:19,400 --> 00:27:21,300 flow. Start to go back up as they're 564 00:27:21,300 --> 00:27:23,400 at least leveling out their capex. 565 00:27:23,400 --> 00:27:26,700 Spend in the past quarter, they've been spending nine 566 00:27:26,700 --> 00:27:31,300 billion dollars on capex in a single quarter which is massive. 567 00:27:31,400 --> 00:27:35,000 This is around 30 percent of their revenue, going to capex, 568 00:27:35,200 --> 00:27:38,800 massive capex. Spend that needs to level out at 569 00:27:38,800 --> 00:27:42,000 a minimum or at least go down for them to generate their 570 00:27:42,000 --> 00:27:43,300 growing free. Cash flows. 571 00:27:43,800 --> 00:27:45,400 So that's what I'm going to be focused on with medicine. 572 00:27:45,600 --> 00:27:47,700 Earnings report the cost structure of the company. 573 00:27:47,800 --> 00:27:51,300 The stock based compensation, the capex spend, and the other 574 00:27:51,300 --> 00:27:55,500 stuff whether or not they gained a few 10 million, new users or 575 00:27:55,500 --> 00:27:57,600 lose 10 million users. I don't think is the biggest 576 00:27:57,600 --> 00:27:59,200 deal. I think the cost structure is 577 00:27:59,208 --> 00:28:03,300 going to be the primary focus and I think the overall they're 578 00:28:03,300 --> 00:28:06,100 going to have positive metrics because it sounds like 579 00:28:06,100 --> 00:28:08,600 Zuckerberg has been very focused on this pivot. 580 00:28:08,800 --> 00:28:11,200 It's not just talk. He has laid off a lot of people 581 00:28:11,400 --> 00:28:13,300 he has focused on optimizing costs. 582 00:28:13,400 --> 00:28:16,600 Now next up of course we have a Roku Earnings Wednesday after 583 00:28:16,600 --> 00:28:18,900 closes. Well this is a company that I've 584 00:28:18,900 --> 00:28:21,500 never. I've never been behind the story 585 00:28:21,500 --> 00:28:23,000 of this company. I think there's too many 586 00:28:23,000 --> 00:28:24,700 problems and headwinds that it faces. 587 00:28:25,200 --> 00:28:27,300 First of all the performance of the company over the past two 588 00:28:27,300 --> 00:28:32,300 years has been - 84%. It got hyped up to a point that 589 00:28:32,300 --> 00:28:35,700 was incredible where people thought that Roku is taking over 590 00:28:35,700 --> 00:28:38,900 the world. This was in line with the Kathy 591 00:28:38,900 --> 00:28:42,800 would Arc invest hype one of her key Holdings and then it came 592 00:28:42,800 --> 00:28:45,700 back down to reality that this company is not making Money 593 00:28:45,700 --> 00:28:49,500 right now and it faces intense competition part of their 594 00:28:49,500 --> 00:28:54,600 competition is apple with the Apple TV and then you have even 595 00:28:54,600 --> 00:28:58,400 more intense competition from Amazon with the Amazon Fire. 596 00:28:58,700 --> 00:29:03,200 Amazon's practically giving away TVs on Amazon just to get people 597 00:29:03,200 --> 00:29:06,100 using their Fire TV. So when you buy the Amazon TV, 598 00:29:06,100 --> 00:29:10,700 it comes with the Fire TV built inside like many, many Roku TVs 599 00:29:10,700 --> 00:29:12,700 as well. They have the Roku built inside. 600 00:29:13,000 --> 00:29:16,300 The the reason that they want to subsidize the Where to get you 601 00:29:16,300 --> 00:29:19,400 using their their piece of software is just like apple 602 00:29:19,400 --> 00:29:21,000 wanting to get you to use an iPhone. 603 00:29:21,200 --> 00:29:23,800 They want you to get into the ecosystem and they can monetize 604 00:29:23,800 --> 00:29:26,400 you a bunch of different ways through advertisements through 605 00:29:26,400 --> 00:29:28,600 different media and content that they produce. 606 00:29:28,600 --> 00:29:32,600 They're all different means. So this is a platform play Roku 607 00:29:32,600 --> 00:29:36,100 wants to become such a massive platform in Smart TVs that they 608 00:29:36,108 --> 00:29:38,600 can leverage that to sell advertising that they can build 609 00:29:38,600 --> 00:29:41,100 out their own little mini Netflix service that they can 610 00:29:41,300 --> 00:29:44,000 sell subscriptions and different things in shops. 611 00:29:44,100 --> 00:29:45,400 They can have lots of different ways. 612 00:29:45,500 --> 00:29:48,900 As of monetizing it, if they become a big enough platform. 613 00:29:48,900 --> 00:29:51,700 So that's the story in the thesis of the company, but like 614 00:29:51,700 --> 00:29:55,000 many of these companies, it talk really big about their big 615 00:29:55,000 --> 00:29:58,000 grandiose plans. The metrics don't look too 616 00:29:58,000 --> 00:30:00,600 favorable. The earnings per share has been 617 00:30:00,600 --> 00:30:03,600 - for the past three quarters. It's expected to be - this next 618 00:30:03,600 --> 00:30:05,700 quarter. We're going to have - earnings 619 00:30:05,700 --> 00:30:08,500 per share and then of course this is another company where 620 00:30:08,500 --> 00:30:10,400 their free cash flow is all over the place. 621 00:30:10,400 --> 00:30:13,200 Sometimes positive, sometimes negative but then there's 622 00:30:13,200 --> 00:30:15,400 another one where they have the high stock-based compensation. 623 00:30:15,600 --> 00:30:17,400 It's an expense that's going up over time. 624 00:30:17,600 --> 00:30:19,400 Meaning, they're deluding shareholders. 625 00:30:19,600 --> 00:30:21,100 I don't know if they'll beat or missed. 626 00:30:21,100 --> 00:30:23,600 I can't say, but I think it's just going to be tough. 627 00:30:23,600 --> 00:30:26,600 That's my guess on this one. Now, next up, we have Thursday 628 00:30:26,600 --> 00:30:30,500 morning, we have MasterCard the duopoly with Visa reporting 629 00:30:30,500 --> 00:30:33,000 earnings as well. And the comments that I said 630 00:30:33,000 --> 00:30:36,600 around Visa, you could almost use those for MasterCard as 631 00:30:36,600 --> 00:30:38,300 well. I'm personally invested in, 632 00:30:38,308 --> 00:30:40,600 MasterCard, I'm extremely bullish on the company. 633 00:30:40,900 --> 00:30:43,700 The more that I read about it and research it, the more that 634 00:30:43,700 --> 00:30:47,200 my concerns about the of the company and competitive threats. 635 00:30:47,500 --> 00:30:50,500 Those go away a little bit and I realized the fundamentals of 636 00:30:50,500 --> 00:30:53,500 this company and how good of a compounder it is, the revenue. 637 00:30:53,500 --> 00:30:56,500 Growth is remarkable it transfers, all of its Revenue 638 00:30:56,500 --> 00:30:59,100 into ibadah. The free cash flow is so 639 00:30:59,100 --> 00:31:00,900 efficient. All of their cash that they 640 00:31:00,900 --> 00:31:02,800 generate goes right back to the investors. 641 00:31:03,100 --> 00:31:05,400 So the free cash flow generation is incredible. 642 00:31:06,200 --> 00:31:09,300 Stock-based compensation, not a problem for this company, their 643 00:31:09,300 --> 00:31:13,000 free cash flow per share growth is around 17 percent. 644 00:31:13,300 --> 00:31:15,800 Even when you adjust out stock-based compensation, And 645 00:31:16,000 --> 00:31:18,900 it's still around around sixteen and a half percent. 646 00:31:19,000 --> 00:31:21,800 The market average, is around eight percent. 647 00:31:22,100 --> 00:31:25,100 So MasterCard is growing, its free cash flow per share at a 648 00:31:25,100 --> 00:31:27,800 rate of around, double the speed of the market average. 649 00:31:28,100 --> 00:31:31,700 So even though the company trades at a 29 forward P/E, it 650 00:31:31,700 --> 00:31:33,800 deserves to trade that way because it's growing its 651 00:31:33,800 --> 00:31:36,700 intrinsic value at roughly double the annual rate of the 652 00:31:36,700 --> 00:31:40,000 S&P 500 citing, this company's wonderful. 653 00:31:40,100 --> 00:31:42,300 I think it's high-quality compounder. 654 00:31:42,300 --> 00:31:44,100 I think it trades at a reasonable valuation. 655 00:31:44,400 --> 00:31:47,700 I'm personally bought it into the company and the story of it. 656 00:31:47,700 --> 00:31:51,100 I don't concern myself with the competitive threats of 657 00:31:52,500 --> 00:31:55,000 cryptocurrency or any of that type of stuff. 658 00:31:55,000 --> 00:31:57,100 I don't think that that's credible threat. 659 00:31:57,300 --> 00:32:00,600 I think the biggest Potential Threat to MasterCard. 660 00:32:00,600 --> 00:32:04,600 Maybe sometime down the road, is something like Apple pay. 661 00:32:04,900 --> 00:32:07,900 I think that could potentially be a threat, but right now, it 662 00:32:07,900 --> 00:32:11,200 seems like apples much more inclined to work alongside Visa 663 00:32:11,200 --> 00:32:13,400 Mastercard than to butt heads with them. 664 00:32:13,700 --> 00:32:15,300 So as of right now, I think the Earth. 665 00:32:15,500 --> 00:32:18,000 For MasterCard and Visa both of them are going to be good. 666 00:32:18,300 --> 00:32:20,600 I think the companies are very high quality, I don't think 667 00:32:20,600 --> 00:32:23,600 there's too much baked into their price and I expect a lot 668 00:32:23,600 --> 00:32:25,300 from MasterCard. I have very high expectations 669 00:32:25,300 --> 00:32:27,900 for the company. We look at Crocs here. 670 00:32:28,000 --> 00:32:31,000 This is another company that I own just a little bit of, I own 671 00:32:31,000 --> 00:32:35,700 a hundred dollars right now. At one point, I invested 1000 672 00:32:35,700 --> 00:32:40,800 dollars into Crocs and it grew to a $1800 position. 673 00:32:41,200 --> 00:32:44,800 So I quickly made 80 percent gains in the company and around 674 00:32:44,800 --> 00:32:46,700 three months. And so this is a small by for 675 00:32:46,700 --> 00:32:47,900 me. I bought a thousand dollars 676 00:32:47,900 --> 00:32:50,500 worth of it right here. It raised up to an 18 hundred 677 00:32:50,500 --> 00:32:53,100 dollar position and I sold the majority of it right there to 678 00:32:53,100 --> 00:32:56,400 lock in the gains and I put those gains into Google that was 679 00:32:56,400 --> 00:32:58,700 a trade that I did. Now it probably would have been 680 00:32:58,700 --> 00:33:01,800 better if I would have just kept it in Crocs and I think that's a 681 00:33:01,800 --> 00:33:04,100 mistake. I made, I sold the company 682 00:33:04,400 --> 00:33:07,500 because at the time, getting any gains from any company was 683 00:33:07,500 --> 00:33:10,800 incredibly tough and 2022. So when this company went up 684 00:33:10,800 --> 00:33:15,600 80%, I felt like it was prudent to at least lock in some Those 685 00:33:15,600 --> 00:33:17,400 canes and put it into a different company. 686 00:33:17,400 --> 00:33:19,000 That's a little bit less volatile. 687 00:33:19,400 --> 00:33:22,300 Having said that when I look over the fundamentals of Crocks 688 00:33:22,800 --> 00:33:25,600 and the brand value of this company, which I know it sounds 689 00:33:25,600 --> 00:33:29,200 funny. It's Crocs the silly shoes, you 690 00:33:29,200 --> 00:33:31,700 have gen Z decking out there. Croc shoes. 691 00:33:31,900 --> 00:33:35,200 I believe there's sustainable brand value with Crocs people, 692 00:33:35,200 --> 00:33:38,600 like the brand Crocs, they don't want the Chinese knock-offs, 693 00:33:39,000 --> 00:33:40,900 they don't want the, the second-hand pairs. 694 00:33:41,200 --> 00:33:45,300 They want brand-new 60 dollar pair Crocs on top of that. 695 00:33:45,400 --> 00:33:47,500 Crocs bought the brand. Hey dude. 696 00:33:47,700 --> 00:33:51,100 Another very casual shoe, that's incredibly comfortable. 697 00:33:51,400 --> 00:33:54,200 Now, I've never worn a pair of Crocs shoes in my life. 698 00:33:54,200 --> 00:33:57,100 I haven't owned a pair ever, but I do own a number of pairs of 699 00:33:57,100 --> 00:33:58,200 hey, dudes. I think they're the most 700 00:33:58,200 --> 00:34:01,100 comfortable shoes on Earth. So Crux owns two. 701 00:34:01,100 --> 00:34:03,900 Different brands that are both different enough that they give 702 00:34:03,900 --> 00:34:06,600 them access to a different category of consumer, but 703 00:34:06,600 --> 00:34:08,900 they're both incredibly comfortable and they have good 704 00:34:08,900 --> 00:34:12,000 brand value when I buy hey dudes, I don't want to buy 705 00:34:12,000 --> 00:34:13,800 knockoffs, I want to buy the real thing. 706 00:34:14,100 --> 00:34:18,000 So I think this company has Or sustained ability to keep its 707 00:34:18,000 --> 00:34:20,600 economics. Then a trendy company. 708 00:34:20,900 --> 00:34:23,900 I wouldn't consider this just a trendy company, but when I look 709 00:34:23,900 --> 00:34:27,800 at the company, I regret selling it a little bit because I 710 00:34:27,800 --> 00:34:30,699 actually don't think that it's overvalued, it's still trading 711 00:34:30,699 --> 00:34:35,000 at a PE ratio below 9, very low expectations for the company. 712 00:34:35,300 --> 00:34:38,699 The only real downside of the company right now is to buy the 713 00:34:38,699 --> 00:34:41,199 hey, dude brand, they overpaid a little bit. 714 00:34:41,500 --> 00:34:44,400 They bought it during the peak hype and they paid mostly with 715 00:34:44,400 --> 00:34:46,199 cash. So they Took out a lot of debt 716 00:34:46,199 --> 00:34:48,100 for it. They're paying this down super 717 00:34:48,100 --> 00:34:51,100 fast. So they went from 2.8 billion 718 00:34:51,400 --> 00:34:55,800 down to 2.2 billion in just a year, incredibly fast pay off of 719 00:34:55,800 --> 00:34:59,200 their debt, and they're also buying back shares while paying 720 00:34:59,200 --> 00:35:01,300 back the debt. So, Crocs is a really neat 721 00:35:01,300 --> 00:35:03,600 company, they've really done. Well, the management has done 722 00:35:03,600 --> 00:35:07,500 great, very cool company below a ten billion dollar valuation. 723 00:35:07,800 --> 00:35:11,700 Another thing I'd pay attention to with Crocs is we have right 724 00:35:11,700 --> 00:35:13,300 here? This part on quiet room that 725 00:35:13,300 --> 00:35:16,800 shows you the Insider trades of the And you can see what they're 726 00:35:16,800 --> 00:35:20,100 doing if they're buying and if they're selling, I would pay 727 00:35:20,100 --> 00:35:22,500 attention to what the Insiders are doing. 728 00:35:22,800 --> 00:35:25,400 Because one of the biggest indicators to me that this 729 00:35:25,400 --> 00:35:30,300 company was undervalued was, the amount of insane buying that was 730 00:35:30,300 --> 00:35:33,300 happening from all of the Insiders, the executives, the 731 00:35:33,300 --> 00:35:36,000 board of directors. Everybody in the company was 732 00:35:36,000 --> 00:35:38,200 buying the company hand over fist. 733 00:35:38,300 --> 00:35:41,100 When it's sold down here, they were using their own money, 734 00:35:41,100 --> 00:35:43,600 their own salaries, it wasn't just stock options. 735 00:35:43,600 --> 00:35:47,500 Just maturing This was them, buying the company like crazy 736 00:35:47,700 --> 00:35:50,300 when I saw that as well as the valuation, as well as the 737 00:35:50,300 --> 00:35:52,800 acquisition. I thought it was a good buy as 738 00:35:52,800 --> 00:35:54,700 well, and I think that's a big indicator. 739 00:35:54,800 --> 00:35:57,700 So keep that in mind, insiders sell stocks for all different 740 00:35:57,700 --> 00:36:01,000 reasons, but when you see all of them buying a company, they only 741 00:36:01,000 --> 00:36:03,400 really do that for one reason and it's to make a lot of money. 742 00:36:03,500 --> 00:36:06,100 Now, moving on from Crocs, we have a slightly bigger company 743 00:36:06,100 --> 00:36:08,900 which is Amazon. I've talked about Amazon a lot, 744 00:36:08,900 --> 00:36:11,800 so I'm not going to restate the thesis hair but let me give you 745 00:36:11,800 --> 00:36:14,300 my predictions of this upcoming quarter. 746 00:36:14,800 --> 00:36:18,400 The biggest in Music value drivers of Amazon is the AWS 747 00:36:18,400 --> 00:36:20,400 business, the growth of that business over time and the 748 00:36:20,400 --> 00:36:25,100 economics of it, the advertising business, another huge intrinsic 749 00:36:25,100 --> 00:36:28,500 value, driver of the company. And then you also have the prime 750 00:36:28,500 --> 00:36:31,600 business, which is layered upon the retail business. 751 00:36:31,700 --> 00:36:34,900 I believe that the retail business is going to do fine, it 752 00:36:34,900 --> 00:36:37,600 might come in slightly above slightly below, that doesn't 753 00:36:37,600 --> 00:36:40,200 really matter my opinion. I think it's going to be mostly 754 00:36:40,200 --> 00:36:43,500 in line with expectations. I think the advertising business 755 00:36:43,500 --> 00:36:45,200 is going to do well, I believe that. 756 00:36:45,400 --> 00:36:49,200 Amazon is taking advertising market share from Google and 757 00:36:49,200 --> 00:36:51,400 meta. They have a better advertising 758 00:36:51,400 --> 00:36:54,300 platform because it's directly what the customers shopping for. 759 00:36:54,500 --> 00:36:58,300 And I believe we're Amazon is going to struggle is with AWS, 760 00:36:58,300 --> 00:37:01,800 Amazon's web services. I think this is going to be a 761 00:37:01,800 --> 00:37:05,300 big frowny face for the company. It's going to be sad. 762 00:37:05,500 --> 00:37:08,600 I'm expecting that going in as an investor and I'm expecting 763 00:37:08,600 --> 00:37:12,500 people to blast Amazon investors saying look at this AWS has 764 00:37:12,500 --> 00:37:15,100 slowed down so much over the past 90 days. 765 00:37:15,400 --> 00:37:18,000 It's slow down. It's now down to the low, teens 766 00:37:18,000 --> 00:37:21,400 growth rate, like I said, with Microsoft companies in the 767 00:37:21,400 --> 00:37:24,300 Fortune, 500 are pulling back on their spin. 768 00:37:24,600 --> 00:37:27,300 They're trying to optimize their trying to cut costs and they're 769 00:37:27,300 --> 00:37:30,400 doing that everywhere possible. So a lot of them are firing 770 00:37:30,400 --> 00:37:33,200 employees, they're finding off different divisions and they're 771 00:37:33,200 --> 00:37:36,400 cutting back on licenses from companies like Adobe like 772 00:37:36,400 --> 00:37:38,600 Microsoft. And then they're also cutting 773 00:37:38,600 --> 00:37:42,100 costs where they can in one of their biggest expenses which is 774 00:37:42,100 --> 00:37:44,000 cloud. I think we're going to see a lot 775 00:37:44,000 --> 00:37:47,000 of investors. Bosch Amazon for the slow growth 776 00:37:47,000 --> 00:37:49,800 and AWS that I'm expecting. But I don't think that's going 777 00:37:49,800 --> 00:37:51,700 to be too detrimental to the story. 778 00:37:51,700 --> 00:37:54,500 So, if you're invested in Amazon, like I am, I think 779 00:37:54,500 --> 00:37:55,900 that's what you have to be ready for it. 780 00:37:56,200 --> 00:37:58,500 You have to be ready for the critics, talking about the big 781 00:37:58,500 --> 00:38:01,900 slowdown and Amazon AWS. Now, moving on, we gotta talk 782 00:38:01,900 --> 00:38:05,400 about until this is one of the most popular value Investments 783 00:38:05,400 --> 00:38:08,500 dividend-paying Investments and it's one that I've been bearish 784 00:38:08,500 --> 00:38:11,500 on and I've been trying to persuade investors away from for 785 00:38:11,500 --> 00:38:15,200 a long period of time. I don't like this company in the 786 00:38:15,400 --> 00:38:18,400 Isn't said it's in the risks that it has and the operating 787 00:38:18,400 --> 00:38:21,300 efficiency of it, it's not that efficient of a business. 788 00:38:21,400 --> 00:38:23,800 It has a lot of expenses, a lot of risks and research and 789 00:38:23,800 --> 00:38:26,400 development and capex. The performance of it has been 790 00:38:26,400 --> 00:38:29,200 horrible over the past couple of years because a company has 791 00:38:29,200 --> 00:38:32,800 faced intense competition from new Rivals. 792 00:38:32,900 --> 00:38:36,100 But I will say what makes me think that there may be some 793 00:38:36,100 --> 00:38:40,100 upside with this company is like I said with Crocs seeing the 794 00:38:40,100 --> 00:38:43,600 Insiders aggressively by the company that really changes the 795 00:38:43,607 --> 00:38:46,900 calculation when you see it Insiders aggressively buying the 796 00:38:46,900 --> 00:38:50,200 company over and over again. They could be wrong, but 797 00:38:50,200 --> 00:38:52,100 insiders usually know what's going on. 798 00:38:52,100 --> 00:38:57,200 The most with the company, I see the CEO of the company buying a 799 00:38:57,200 --> 00:38:59,600 lot of the company. These aren't just little 800 00:38:59,600 --> 00:39:02,900 symbolic. Buys he bought 9700 shares right 801 00:39:02,900 --> 00:39:05,600 there, he bought another nine thousand shares back in January 802 00:39:05,600 --> 00:39:08,500 31st and he continues to buy more and more shares of the 803 00:39:08,500 --> 00:39:12,000 company Beyond what's necessary. He really believes the company's 804 00:39:12,000 --> 00:39:14,200 undervalued and that you can turn the company around. 805 00:39:14,200 --> 00:39:16,900 So Intel's a company. Don't find attractive because of 806 00:39:16,900 --> 00:39:19,200 the qualities of the company. It's not one that I'm ever going 807 00:39:19,200 --> 00:39:22,700 to be buying the dip of, but it is encouraging to see the CEO of 808 00:39:22,700 --> 00:39:25,200 the company by more and more shares of the company. 809 00:39:25,300 --> 00:39:27,100 Now, finally, we have the best right here. 810 00:39:27,300 --> 00:39:29,700 We saved the best for last, which is Snapchat. 811 00:39:30,100 --> 00:39:33,500 The nice thing about Snapchat in this earnings report, is 812 00:39:33,500 --> 00:39:36,300 normally, Snapchat is at the beginning of the week. 813 00:39:36,700 --> 00:39:39,300 And that's, that's meaningful. Because what Snapchat 814 00:39:39,300 --> 00:39:42,800 historically does is Snapchats an awful business. 815 00:39:42,800 --> 00:39:44,800 If you're not aware, it's a terrible business, a terrible 816 00:39:44,800 --> 00:39:47,700 investment, It's been one of the worst Investments all time since 817 00:39:47,700 --> 00:39:50,900 the IPO I've routinely stated that this company is terrible in 818 00:39:50,908 --> 00:39:54,200 the way that it manages itself, it has super high expenses, it 819 00:39:54,200 --> 00:39:57,100 has a Founder, that's a multi-billionaire. 820 00:39:57,300 --> 00:39:59,700 And the investors in the company have only lost money. 821 00:40:00,000 --> 00:40:04,100 So it's been an awful investment and what they typically do is 822 00:40:04,100 --> 00:40:07,800 they report before, all these other big companies, Snapchat 823 00:40:07,800 --> 00:40:11,600 has horrible, earnings, horrible reports with the advertising 824 00:40:11,600 --> 00:40:15,000 business, and it drops, the stock price of meta and Google 825 00:40:15,000 --> 00:40:18,100 as Result. Because investors believe that 826 00:40:18,100 --> 00:40:22,000 Snapchat similar to meta and Google, the nice thing is now 827 00:40:22,100 --> 00:40:24,500 they're reporting after both Google and meta. 828 00:40:24,600 --> 00:40:28,200 So, Snapchat can't hurt Google and meta this week, which is 829 00:40:28,200 --> 00:40:31,700 nice for Google meta investors. So whether or not Snapchat beats 830 00:40:31,700 --> 00:40:33,300 or mrs. Is not something I'm too 831 00:40:33,300 --> 00:40:37,300 concerned about it can impact alphabet and meta this time and 832 00:40:37,300 --> 00:40:39,200 the company's one that I've never liked, I don't like the 833 00:40:39,200 --> 00:40:40,900 management. I don't like the way that they 834 00:40:40,900 --> 00:40:43,000 structure their business. I don't like the app. 835 00:40:43,000 --> 00:40:45,200 I don't like anything about it. So Snapchats not one. 836 00:40:45,300 --> 00:40:49,600 One that I'll ever be investing in, but that is my earnings 837 00:40:49,600 --> 00:40:52,200 predictions and I hope this was helpful to you looking forward 838 00:40:52,200 --> 00:40:54,300 to the next week, a lot to dive into. 839 00:40:54,300 --> 00:40:56,800 And of course, after all of this happens, I'll have another 840 00:40:56,800 --> 00:40:58,400 video. That's a follow-up for the next 841 00:40:58,400 --> 00:41:00,900 week, so that's all for now. I hope you enjoyed and I'll see 842 00:41:00,900 --> 00:40:47,000 you in the next one. One that I'll ever be investing 843 00:40:47,000 --> 00:40:51,100 in, but that is my earnings predictions and I hope this was 844 00:40:51,100 --> 00:40:54,000 helpful to you looking forward to the next week, a lot to dive 845 00:40:54,000 --> 00:40:55,600 into. And of course, after all of this 846 00:40:55,600 --> 00:40:57,100 happens, I'll have another video. 847 00:40:57,100 --> 00:40:59,900 That's a follow-up for the next week, so that's all for now. 848 00:40:59,900 --> 00:41:01,600 I hope you enjoyed and I'll see you in the next one.