Welcome back, everyone. Today on the Joseph Carlson
Show, we have Duolingo, a stock that I first started buying just
this week. I highlighted on my YouTube
channel a few days ago. We're going to be looking at
Duolingo, kind of revisiting this stock and the timeline of
events. We'll be looking at things like
when I first started doing research on this company, what
characteristics caught my attention, when did I first
start making videos on it, as well as responding to some of
your comments on my previous video.
A lot of users left some interesting feedback, some of
its criticism, some of it's just nice comments.
I'll be responding to some of those comments as well.
Now, of course, we have some other news to get into.
We have Uber that also reported earnings this week.
The CEO of Uber also went on to CNBC to talk about Waymo, and he
mentions one particular statistic about Waymo that is
incredible. We'll be going over that.
And then we have Texas Roadhouse, one of my larger
positions, reporting earnings this evening.
I'll give some thoughts going into this earnings of whether or
not I think the cinnamon butter rolls will continue to
outperform. So like always, we have a lot to
do in this episode, a lot to go over.
And we start things off with Duolingo.
Duolingo is a stock that I highlighted in a recent episode,
and it's the newest holding in My Portfolio.
I bought $10,000 of this stock just this past week.
Now the holding resides in the Story fund, which is the smaller
of my 2 portfolios. It's a little bit more
concentrated and growth focused. And this portfolio has overall
just had outstanding performance, outperforming the
QQQSCHG, the S&P 500, mostly because of Netflix.
I put a lot of effort and energy into this holding.
It's compounded like crazy. That's where the majority of
games come from. But there really hasn't been any
slackers in it. Amazon, I think has done the the
weakest of the bunch and it still hasn't done bad.
We're up $42,000 in Amazon and the rest of the holdings have
they've they've held their weight.
When we look at Duolingo, I looked at a lot of different
companies of what I wanted to enter into this portfolio and I
decided upon, out of all the different ones that I was
looking at, that Duolingo was my favorite risk adjusted reward
addition. So I bought $10,000 of that
stock this past week. Now to a lot of people, this may
have came across as out of left field or out of the ordinary.
In fact, one of the most common pieces of feedback I got after
buying Duolingo, making a video about it, was that a lot of
viewers didn't understand why I was buying the company.
Even after explaining the thesis, many people were just
perplexed by it. They're confused.
There's many comments like this one.
This is the first pick I truly don't understand with 260 thumbs
up. So lots of people seemingly very
confused by my purchase of Duolingo.
And I think it's important before we jump into the earnings
that I can help explain this purchase a bit more and the
timeline of me buying it. When we look at recent videos,
we have one going back three months.
This is May 5th, so three months ago.
I have a video highlighting top five quality growth stocks to
buy now. Now the fifth one on this video
is Duolingo. This is what I say about
Duolingo in this video a few months back.
Now, this one may seem like a weaker company.
A lot of people have their opinions on the application,
whether or not they like using it, a lot of anecdotal and
various opinions on it. But keep in mind those are the
same type of opinions and anecdotes that you get for
companies like Spotify and like Netflix.
Some people say I don't like Netflix shows or I don't like
Spotify. I'd rather have Ale Music.
Very similar situation with Duolingo and similar to those
companies as well. This one works with millions and
millions of people. It's a subscription company,
it's a bit of entertainment, but it's mostly focused on the
educational side. In that video, I go over just a
few minutes of Duolingo and express my interest in the
company, how it actually fits a lot of my investment criteria.
Everything that I saw when I was doing deeper and deeper research
raised my conviction in the stock.
It didn't lower it. When I looked over the
characteristics of this company, this is how I summarized it the
way that I saw it. Duolingo is the undisputed
leader in digital language learning with unmatched brand
recognition and global scale. You know about Duolingo?
You probably don't know about even the second or third place
or 4th place options. Most people don't even know what
they're called. So at least with Netflix, you
know about Amazon Prime Video or Peacock or Paramount?
With Duolingo, most people don't even know the competitors.
They are the the by far dominant one in their industry.
It is a gamified freemium model that drives massive user
acquisition at a low cost, converting efficiently to paid
subscribers. It follows in a very similar
structure as Spotify. You have the free tear that just
allows people to sign up frictionless.
You can Join Now and get an account for free.
Then when you get into the ecosystem, you really like it.
You might get converted to the paid tear if you're convinced
enough and a certain percentage of their free tear users are
continually convinced to upgrade the paid tear.
So you have this nice funnel of first free, then paid.
Paid are what really makes some money.
User data fuels AI driven personalizations, reinforcing a
self improving loop of engagement and learning
outcomes. User retention is near social
media levels. This is something that people
don't understand about Duolingo is that they look at it as
basically like just a video game or a random app.
But Duolingo has some of the highest retention of any app in
the world. It's not quite what social media
is, but it's getting closer and closer to those levels.
Social media levels means that you log on and use it every
single day, and Duolingo now has 10s of millions of daily users.
Daily use is social media levels that becomes an ingrained part
of your life when you use something every day.
It is a very large addressable market with an estimated 2
billion people currently learning English.
They're growing into these massive verticals that have
long, long runways of potential growth.
The total addressable market is huge.
And then just an added bonus, the company's still led by the
founder of the company. He's very, he's certainly not
focused on the short term. He's not going to squeeze
profits out of it, out of the short term.
When I looked at the overall investment thesis of Duolingo, I
really liked what I saw diving in more to the financial
metrics. I also saw it as a very high
retention, high margin, very good cost structure subscription
business. Those are the type of companies
that I typically focus on, ones that have huge amounts of
reoccurring revenue. They're very reliable, they're
scalable, they have huge total addressable markets.
And of course, selling at a reasonable price.
Now when we look at the price, a lot of people will squabble or
be hung up on the PE ratio. And while it's true that
Duolingo had a very high PE ratio, it's also true that
Duolingo is growing incredibly fast.
And anytime I look at a PE ratio, you have to match it with
the growth rate of the company, with the cost structure, with
the operating leverage. Those things are part of the
price to earnings growth ratio. They're part of the long term
expectations. When I looked at the overall
valuation of Duolingo and looked at the overall growth
assumptions, I saw is undervalued, not overvalued
because if we look at it here, just making a couple assumptions
at $440.00. So this is $100 more than I
bought it. If we plug in a 20% free cash
flow per share growth rate over the next five years, which I
believe is completely achievable, the company's
growing it's top line revenue above 30%, around 35%.
A company growing top line revenue with great cost
structure and margins can certainly achieve 20% free cash
flow per share growth. Then if we just assume a 2% free
cash flow yield, we get a 13% annualized return for the next 5
years. Now let's say our desired return
is 19%. That moves us to a starting
price of $330, meaning that when I plugged in the same
assumptions just a couple days ago at a price of $330 per share
with 20% free cash flow per share growth and a 2% yield,
that gave me a 19% compounded return over five years.
Even after it moving up 27% today or whatever, it's moved
up, that still gives me a 12 to 13% return.
So even after this move, I still don't believe by the numbers
that Duolingo's overvalued. I think it's less undervalued
than it was before, but I still believe it's undervalued.
When you dive into the fundamentals of the company,
especially this most recent quarter.
When we look at this, for example, on a quarterly basis,
this is just last quarter, the revenue was $252 million.
Again, this is like a $20 billion company.
So we have revenue growing 41.4%, so about 42% revenue
growth and revenues of $252 million.
If we look at this on a trailing basis, this is what it looks
like, 40% growth, $885 million of revenue.
Now the amazing thing is out of that 885 million, if we look at
subscription revenue, this is just the part that's from
subscribers, not advertisements or anything that's not
reoccurring. This is now at $734 million.
So the huge majority of their revenue is coming from
subscriptions. This number grew by 47% year
over year. Massive growth.
On a mostly subscription based company, you can see these
growth curves and this is part of the valuation.
So when you're factoring in the price to sales or the PE ratio
or the free cash flow, you have to factor in the rate of growth.
Most companies are not growing by 40%.
Most companies are not subscription based.
Most companies don't have 70% gross margins.
All of that should be factored into the valuation.
When we look at the daily active users, this is another metric
that is just incredible. Now this is the one that they
focus on possibly the most is getting people to use the app
every single day because that's the engagement.
That's similar to a social media company is using it every single
day. Having it be part of your habit,
it went up even after a great Q1.
So from Q4 of last year to Q1, they gained a lot of daily
active users, about 6,000,000. The growth rate from Q1 to Q2
wasn't as much, but it still grew.
And year over year it grew 39%, almost 40%.
Once again, one of the only weaknesses in this report was
the monthly active users. These are people that have
logged on at least once in the past 30 days, and it had a
sequential decline quarter over quarter.
After looking into this, there's a couple things that explain
this. First of all, the Q1 jump to Q2
is often the smallest throughout history.
That's typically been the smallest jump is Q1 to Q2Q4 to
Q1 is typically a big step up and that's how it is throughout
history. So naturally you have these
bigger jumps from Q4 to Q1 as people are starting the new
year, they want to learn a new language, you know, they sign up
for Duolingo. So a lot of that happens in Q4
to Q1 now in 2025. Q One in particular, that was a
massive step up because they had a very unique marketing
campaign. The Duolingo bird died and
everyone had to revive it. It went super viral.
It got so many new users in a single quarter because it was by
far their most successful marketing campaign.
It was just an ultra viral social media campaign.
So they gained an unnaturally large amount of users in this
quarter to quarter and then they gave up a few of those users
that were less committed. This is a very healthy thing.
We've seen it happen with Netflix before during COVID when
they had unnatural growth, they shed off some users, but then
the long term trend took over. They continued to gain
subscribers over time. You can see the same type of
trend over time. This was an unusually good Q1
because of that marketing campaign.
But if you factor that in, it looks like good organic growth
from Q4 of last year to Q2 of this year.
The most financially important part of this company is the paid
subscribers. Over time, they make up for
around 80 to 90% of the total revenue of the company.
So the huge majority of money, free cash flow, earnings per
share, everything is driven by these paid subscribers.
When you subscribe to Duolingo, typically you sign up for like a
whole year. You just do an annual plan.
They have family plans as well. You can have multiple people use
them so they have a lot of lock in.
Once you sign up, you have it for a full year.
It's not that expensive of a membership.
Most people renew it over time and the paid subscribers
continues to grow at an incredibly fast pace going up
36,000,000, going to 10.9 million where the last quarter
was 10.35. Around every 30 days are gaining
200,000 subscribers and these are some of their most dedicated
people using the app everyday. All the KPIs and business
fundamentals look really good. You see continued growth, strong
engagement, increases in daily active users increases and paid
subscribers. There's overall some shedding in
the monthly active users, but the growth trend continues.
When we look at some of the financials, this also looks
better and better. Now the free cash flow growth is
really fast. It's growing at 55%.
So again, when we're looking at free cash flow yields, we're
making growth assumptions of the future.
You have to factor in what you think this company will do over
the next five years. It's growing 55% today.
I believe it can grow above 20% per year for the next five
years. In fact, I think those
assumptions are rather conservative.
The earnings per share is also growing super fast, up 73% year
over year. If you look at it just on a
quarterly basis, it's up around 78%.
So you have earnings per share just shy of doubling year over
year. That cuts down the PE ratio from
100 to 50 to 25 really fast if you keep growing at these rates.
And then to add on to that, this is a company that has no debt.
They just have cash piling up on their balance sheet.
All the efficient free cash flow they're generating has to go
somewhere. They're just putting it in cash
for the time being. Now, this was one where there is
a lot of, I would say mixed reception.
A lot of people confused if I was buying it, leaving kind of
comments where they're like perplexed and I wanted to go
through and just respond to some of them.
So I have a little bit of AQ and a here I'll respond to some of
these comments. One of the comments that I
received a lot and I decided to just screenshot this one because
it it exemplifies a lot of the thoughts people had after
watching that video Is this is the first pick?
I truly don't understand my reaction to the people that are
saying this is did you watch the video?
I made a pretty in depth video going over the entire summary of
the company and why it fits in with my investing philosophy and
just saying that you don't understand it doesn't really
give me anything to work with. You don't understand what part
of it? Duolingo is a subscription based
company. It has a huge total addressable
market. It's growing very fast, has
great cost structure, very high margins.
It has a product that has a big total addressable market, big
verticals to grow into, founder LED, and it was selling at a
valuation that if you incorporate growth was
completely reasonable. So I don't know what people are
saying when they don't understand it, like they're
completely baffled by this pick. What is so bad about Duolingo?
What what is the problem here? We have some other comments here
that are a bit more specific. Steven says, I think people are
surprised because it doesn't fit well with what companies you
buy. You have the sort of portfolio
that Dev Kantasaria wouldn't mind.
He'd make his changes, no doubt, but he'd approve of a lot of it.
Ask Dev the first thing he'd change, probably the language
game thing or bicycle game thing.
If you still owned it. It's no FICO, that's for sure.
Hope it does well for you. So this is kind of a, a feedback
that Duolingo is not as high quality as companies like FICO.
It's not as high quality as the type of companies that Dev
Kantasaria own. The first thing I want to
highlight is I don't I like Dev Kantasaria.
I do like him. I respect him a lot.
I think he's a great thinker. He does great analysis on
companies and I like his philosophy.
There's certainly a lot of similarities, but I'm not Dev
Kantasaria and in fact, I have a lot of disagreements with Dev
Kantasaria. He did sell Amazon at the lowest
point over the past five years and I thought that was a huge
mistake. I bought more of it at the exact
time that he was selling Amazon. Although Dev Kantasaria and I
agree, I think that into it's a great company.
MasterCard, S&P Global, the credit rating agencies.
There's also some companies that I think we just disagree on.
Dev Cantisari has gone on the record saying that Costco is not
a quality company in his opinion.
I would argue the exact opposite.
I think Costco is going to be around longer than most
companies on planet earth generating enormous amounts of
money through their membership model.
I think Costco is is one of the most flawless, best business
models in the world. Dev does not and he said it in
in different podcasts. And then some of the companies
that I've made the most amount of money on, ones that I I
really made about half the gains in my total portfolio or more.
Netflix, Google, Amazon, Texas Roadhouse are all ones that Dev
has said that he hasn't owned or wouldn't own.
Those are all companies that fit outside of the mold of Dev
Kantasaria companies. He would never buy a Netflix.
I don't think he's ever going to buy that company.
He's outwardly spoken against big tech saying they spend too
much on CapEx. So he's not buying Google and
you're not going to catch him buying Texas Roadhouse.
Which Texas Roadhouse has been one of my best performing
positions. I think it's far underrated as a
compounder. The company is incredibly well
positioned and Texas Roadhouse many people may criticize as
having a lot of competition, having a smaller Moat, but Texas
Roadhouse doesn't have regulatory issues like FICO.
It doesn't have disruption issues like Google with LLMS
Texas Roadhouse has been an incredibly insular company
focusing on executing its business model and growing
rapidly. But again, these are the type of
companies that don't fit well with the Devcantasaria type of
portfolio. And then you mentioned that
Duolingo's know FICO, that's for sure.
Well, Fico's not immune to different disruptions or
problems as well. Even though FICO has a dominant
position in their market on credit rating, they did make a
huge mistake. Management exercised too much
pricing power too quickly and that has been a huge problem for
the stock. If we look at FICO today, this
is Devcantasari's largest holding by far.
It was a 30% position, so over double the size of any holding
in My Portfolio. It's down 31% year to date.
In the past year, it's down 20.6%.
FICO has been getting crushed recently because of regulatory
scrutiny on the company that they asked for by their
incredible price hikes in a short amount of time.
So again, even though I I really like Dev Kantasaria, I've
continually been very complimentary of them.
It's not going to be the case where I buy every company that
he buys. If he sells one, I sell it.
That's not how I operate. I'll use his research, I'll look
at what he does, but I'll have my own investing philosophy.
Another commenter said, I was hoping you picked Shark Ninja.
Shark Ninja is an awesome company.
I really, I really like this one.
I respect the CEOA lot. I think it's really cool what
they're doing. Just innovating over and over
again, coming out with really creative products.
But there's just no subscription model there.
There's no recurring revenue. They have to continually
innovate and innovate and innovate.
I'd rather own the Costco that they sell.
Shark Ninja. Think about Costco's job and
Shark Ninja's job and think about who has an easier job.
Costco that just takes whatever products are popular and puts
them on their shelves and has really good customer service,
treats their members well. Or Shark Ninja that's constantly
engineering, doing new designs, refining, manufacturing, and
dealing with all sorts of returns.
Whenever Costco has a return, they just send it over to the
manufacturer. Costco has a much easier job
than Shark Ninja and Costco has a recurring revenue through
their membership model. So I I just rather own a company
that's at steady instead of 1 like Shark ninja.
The reason I buy Duolingo over Shark Ninja Again, if Duolingo
had no recurring revenue, no subscribers, I wouldn't own the
stock. Another common one, this one had
over 100 up votes. Says Duolingo has APE ratio of
169. It's a lot.
Perhaps you see the value of it, but for me, it's a pass.
Again, I think these comments are fine.
If you look at the company and you think it's expensive, that's
fine. And it's never my goal to
convince everyone to buy the companies that I do.
I don't care if you buy them or not.
Frankly, it's not a sales pitch. If I wanted to buy just the most
popular stocks to get an audience through them, I'd be on
the Tesla bandwagon or on the Palantir bandwagon, right?
I'd be buying the companies that I think have the biggest
audience. There's very little content ever
made about this company. I simply bought it because I
wanted to buy it. Now when we look at Duolingo's
valuation in particular, again, it's easy to get hung up on
these Nosebleed PE ratios. You look at it and you go, wow,
the trailing PE is 173, but APE ratio without the corresponding
growth rate is giving you one part of the recipe.
It's like saying, hey, I want to sell you a car for $50,000 and
you say What Car is it? And I say, I'm not going to tell
you it's just $50,000. Can you make a good decision
with only knowing what you're paying but not knowing what
you're buying? That's what you're doing.
If you just look at APE ratio, you know the price tag, but you
don't know whether or not you're getting a good deal.
You don't know if you're getting a good deal or a bad deal just
by the price tag alone. You have to know what you're
buying, how fast it goes, what is the car you're buying for
50,000? If you're buying a used Toyota
Corolla, that's probably not the best deal.
If you're buying a Lamborghini, it's probably a decent deal.
So knowing what you're buying is important.
When we look at the trailing PE ratio, that's true that it looks
expensive, but the PE is growing by roughly double year over
year, meaning that the PE ratio will get cut in half in 12
months. And with this type of company
that has a lot of operating leverage, even though the
revenue growth is growing really fast, the earnings growth is
likely to grow at a much faster pace.
So if Duolingo grows 40% revenue growth, the earnings growth is
probably going to be closer to 60% or 70% because they have
that nice operating leverage. So I think the earnings growth
is going to be well in excess of 50% over the next couple of
years. That'll make the high PE ratio
today look very cheap in the future.
Finally, the last thing that I'll highlight is a lot of
people had a very similar thought.
And I think it's one of the first things you think about the
company is that AI translation tools like a Zoom translating
you or having your phone translate to you into different
languages is going to kill Duolingo.
We have different people saying the future will have people
speaking whatever language they want and having AI translated
for them in real time. And it's already happening now.
I think right there in this first sentence, you highlighted
a problem with this thesis. This is already happening and
Duolingo's still growing. Right now we have more AI
translation tools, more language translation tools.
We have it on our phone. We've had it for a long time.
There's things that will immediately translate you into a
different language. Yet Duolingo's still growing in
number of users, daily active users and revenue growth by 40%.
And they have for years. AI has been around for years and
it continues to grow. And I believe the reason why is
because if you asked most people why they're using Duolingo, why
they're learning a new language, it's not because of a lack of AI
translation tools. That's not why they're using it.
People want to learn new languages, to exercise their
brain, to expand their knowledge, to be able to live in
a different culture, to be able to communicate themselves
directly to people without a piece of technology or phone in
between their face. So even though AI translation
tools may have some effect on the margin, I don't see them
having a meaningful impact on the company long term.
They do not address the core reason the majority of people
learn new languages. Now moving on, we get to a
different subject here, which is Texas Roadhouse reporting
earnings. Aftermarket closed today.
The stock price is currently at 184.
It's floated around just under $200 for quite some time now for
about the past year. But overall, the performance of
this one has been really good. We zoom out five years and you
can see the full picture here. It's actually performed as well
as FICO, in fact, beating FICO over the past five years now.
So you have a restaurant company beating out FICO for five years.
You also have a restaurant company beating out Google for
the past five years. We look at Google's performance
in five years, 163 versus 200% for Texas Roadhouse.
That doesn't factor in dividends.
We can go to Microsoft. Microsoft is another company.
We zoom out five years, Texas Roadhouse has outperformed it.
We go to let's take a look at Meta.
Meta is a great company, great compounder.
Let's take a look at this one. Past five years, 191, not quite
as good as Texas Roadhouse, and again, not factoring in
dividends, which Texas Roadhouse pays hefty dividends?
What other ones are we leaving out here?
Amazon. It's not even close.
Amazon has been a laggard over the past five years, only going
up 41%. If you bought it during the dip,
you got a better deal. But Amazon isn't close to Texas
Roadhouse. If we look at Netflix, did
Netflix do well over the past five years?
Again, this is one that if you bought it in the dip, it's done
incredibly well, but buying it five years ago, it's up 140%.
All these companies beat out the S&P 500.
None of them beat out Texas Roadhouse.
So when people look at this, they see it as highly
competitive and they see it as having poor cost structure and
low margins. But one of the things that they
don't outline with this type of company is it's also highly
insulated. For example, if you invest in
Google, you're competing with disruptive risks like Chachi,
BT, huge dynamic changes in technology.
You have huge changes in servers and cloud hosting and security
and all this stuff at Texas Roadhouse, you really have no
technological disruption risk. It doesn't matter what
technology, what AI, what model's going to get invented in
the future. As long as people like tasty
food and great service and a nice environment, this company
will continue to thrive. And they do so continually by
focusing on those basics. They call it legendary service
and legendary food. They give you great service and
great food. They have a great environment.
They treat their staff really well.
They have a great incentive structure for their staff and
for their management. When I look at Texas Roadhouse,
in the history of investing in this business, I bought around
$35,000 into the position. Now it's an $80,000 position,
$46,000 of it being gains. And it's paid a lot of dividends
along the way as well. I don't expect explosive growth
at this point, but I think they're going to continue
expanding overtime. Now finally, we get to Uber,
which also just reported earnings.
The stock is flattish after earnings, but they're up 40%
year to date. So still great performance from
this company, and it's growing really quickly.
We have the CEO of the company also going on the CNBC to give a
comment specifically on autonomous vehicles.
And I think this part's really applicable to not only the Uber
investor, but also the Google investor with Waymo.
We're working with Waymo in Austin where we expanded our
operational domain. We launched in Atlanta and it's
been a great launch. The average way MO in Atlanta is
busier than 99% of drivers in Atlanta as well.
And we're working with players like We Ride in Abu Dhabi, Wave
in the UK, Baidu outside the US and Neuro and Lucid here in the
US. So we're very excited about the
autonomous trends. I think before I was on, we were
talking about AI. This is physical world AI and we
think it's going to be a huge trend going forward.
Did you catch it? The statistic he gave out, We
have Waymo's in the exact same area as Uber drivers.
Waymo is outperforming 99% of Uber drivers.
Now I'd like to know the 1% that's outperforming the Waymo.
Like who is, who is that guy out there Ubering literally all day,
morning and night, never taking a break, never eating.
I, I want to know who that is because that's incredible.
But it shows the effectiveness of Waymo.
You have one Waymo vehicle and they're outperforming 99% of
people because they can work any time period.
They're not taking breaks. All they have to do is recharge
or refuel. And you can just send them and
you can just send them immediately from one ride to the
next to the next. And right now in the US, Google
has the lead on this Waymo has the lead.
They're expanding the fastest both with and without Uber.
Now, the CEO here, Dars, asked about Tesla and their efforts in
the robo taxi. Here's his comments on Here's
his comments on Tesla. Oh, I think it could be a
competitor, could be a partner and and you know, when you're
talking about trillion dollar tams, there will be no winner
take all in this marketplace. It's great to see Tesla in the
market. They're taking their time and
they are making sure that they're expanding in a Safeway.
So he says that we could be a competitor or we could be a
partner. He's still open to partnering
with Tesla. When you partner with Uber,
you're handing over the direct control of the relationship of
the customer to Uber, no longer to your technology, you're
handing it over to Uber. And that way it pits you against
Uber to some degree, even if you're a partner with them.
For example, if Tesla partnered with Uber across the board and
Uber found a better partner that could build vehicles cheaper or
offered a better mix of how much revenue they share, then they
could switch over to that supplier.
By handing over that direct relationship with the customer,
it makes the autonomous vehicle maker and designer, the Tesla
and the Waymo, become more of a commodity that can easily be
swapped out while Uber maintains the key relationship and they're
the aggregator. The aggregator is the position
you want to be in the position of having the direct
relationship with the customer. And I believe over time, with
Waymo trying out both ways of partnering with Uber and doing
it alone, they may gravitate to also just running things
themselves if they can, if they have the distribution, if they
can make it work, that's in the end the more profitable route.
So we'll see how this continues to work out for Uber as they try
to aggregate everyone into their platform, while these technology
companies are a little bit more reluctant to do so.
That's going to be it for this episode.
See you in the next one.