1 00:00:00,040 --> 00:00:01,880 Welcome back, everyone. Today on the Joseph Carlson 2 00:00:01,880 --> 00:00:04,080 Show, there is a stock that I keep buying. 3 00:00:04,360 --> 00:00:07,080 I'm buying another $3000 of it today. 4 00:00:07,440 --> 00:00:09,120 We'll be going over which company it is. 5 00:00:09,120 --> 00:00:12,720 Why I keep building up this position, why I believe it's a 6 00:00:12,720 --> 00:00:14,320 buy. We'll be discussing all of it. 7 00:00:14,320 --> 00:00:16,600 Now, we also have a lot of other news to get into. 8 00:00:16,600 --> 00:00:19,080 Of course, we have the big news. the United States officially 9 00:00:19,080 --> 00:00:24,320 bombed Iran directly, dropping 13 MO PS massive ordinance 10 00:00:24,320 --> 00:00:27,080 penetrators. These bombs weigh 30,000 lbs 11 00:00:27,080 --> 00:00:29,240 apiece. They were targeted specifically 12 00:00:29,240 --> 00:00:30,880 at Iran's nuclear clear facilities. 13 00:00:31,120 --> 00:00:34,320 Now, this is a huge escalation entering the US directly into 14 00:00:34,320 --> 00:00:36,960 this conflict. But so far, investors, the 15 00:00:36,960 --> 00:00:40,480 market don't seem too concerned about this escalation. 16 00:00:40,560 --> 00:00:42,960 We'll be going over why the market is reacting the way it 17 00:00:42,960 --> 00:00:45,000 is, as well as getting commentary from other people 18 00:00:45,000 --> 00:00:48,040 like Tom Lee on why he thinks the market is so resilient. 19 00:00:48,040 --> 00:00:51,320 Another thing that happened over the weekend was the Tesla robo 20 00:00:51,320 --> 00:00:54,040 taxi event. We have people excitedly 21 00:00:54,040 --> 00:00:56,840 anticipating this day. We've been awaiting it for a 22 00:00:56,840 --> 00:00:59,680 long time where Tesla finally gets to the point of launching 23 00:00:59,680 --> 00:01:02,200 their Bobo taxi vehicles. Now, I watched a number of 24 00:01:02,200 --> 00:01:05,080 footage from all different vehicles and rides and different 25 00:01:05,080 --> 00:01:07,800 drivers and the different content creators that went to 26 00:01:07,800 --> 00:01:10,560 this event, and I have a lot to say about it. 27 00:01:10,800 --> 00:01:14,000 We'll be doing a full review. My overall thoughts of how I 28 00:01:14,000 --> 00:01:17,240 think this launch event went, whether I think Tesla investors 29 00:01:17,440 --> 00:01:20,320 should be bullish or bearish based on this event. 30 00:01:20,320 --> 00:01:23,080 Now, last week, we had this crazy news that Sam Altman, 31 00:01:23,200 --> 00:01:26,720 members of his team at Open AI were receiving $100 million 32 00:01:26,720 --> 00:01:29,800 signing bonuses, that Mark Zuckerberg was trying to poach 33 00:01:30,040 --> 00:01:33,000 his best people and he was willing to pay any amount 34 00:01:33,000 --> 00:01:35,680 necessary. Now, that was just from Sam 35 00:01:35,680 --> 00:01:38,680 Altman, and we've since received more on this news. 36 00:01:39,040 --> 00:01:42,040 We now know that it's real. Sam Altman wasn't making this 37 00:01:42,040 --> 00:01:44,280 up. And it gets even crazier with 38 00:01:44,280 --> 00:01:47,000 Zuckerberg directly reaching out to these people. 39 00:01:47,080 --> 00:01:49,760 We'll be going over this report on how intently focused Mark 40 00:01:49,760 --> 00:01:52,080 Zuckerberg is on building up his team. 41 00:01:52,080 --> 00:01:54,880 And then we have a bunch more stuff to get into hims and her 42 00:01:54,880 --> 00:01:58,400 stock is crashing 32%. We'll be looking at that as 43 00:01:58,400 --> 00:01:59,960 well. As Amazon launches their second 44 00:02:00,080 --> 00:02:02,640 batch of Kuiper Internet satellites, we'll be looking at 45 00:02:02,640 --> 00:02:04,400 that as well. So obviously, we have a ton to 46 00:02:04,400 --> 00:02:06,280 get into in this episode. Let's go ahead and start off 47 00:02:06,280 --> 00:02:08,039 with the company that I keep buying. 48 00:02:08,080 --> 00:02:10,880 The stock is in the financial category and it's Equifax. 49 00:02:10,880 --> 00:02:13,640 I'm buying another $3000 worth of Equifax today. 50 00:02:13,640 --> 00:02:16,480 I'm continually building up this position because I'm very 51 00:02:16,480 --> 00:02:19,160 bullish on this company. Equifax is a company that I 52 00:02:19,160 --> 00:02:22,840 would describe as much better than it appears on the surface. 53 00:02:23,240 --> 00:02:26,200 I think that looks can be misleading and even though 54 00:02:26,200 --> 00:02:29,520 Equifax looks like an old stodgy company with nothing 55 00:02:29,520 --> 00:02:32,720 particularly interesting about it, this is truly a great 56 00:02:32,720 --> 00:02:34,080 company. Now if we just look at the 57 00:02:34,080 --> 00:02:36,680 revenue of this company, you can see that it's growing over time. 58 00:02:36,960 --> 00:02:40,000 It has ebbs and flows, grows a little bit faster at some points 59 00:02:40,000 --> 00:02:43,520 than others. But ever since around 2002, it's 60 00:02:43,520 --> 00:02:46,120 an old company. Ever since around then it's 61 00:02:46,120 --> 00:02:48,840 grown very steadily. And that's because it's a credit 62 00:02:48,840 --> 00:02:50,680 Bureau. When you're a credit Bureau, 63 00:02:50,680 --> 00:02:52,720 you're basically in an oligopoly. 64 00:02:52,760 --> 00:02:55,320 You're in a shared monopoly. Those in and of themselves are 65 00:02:55,320 --> 00:02:58,000 very high Moat businesses. It's almost impossible to 66 00:02:58,000 --> 00:03:00,040 replicate what a credit Bureau is today. 67 00:03:00,520 --> 00:03:02,880 Now, that's not the exciting part of the company. 68 00:03:03,080 --> 00:03:06,080 We know that Equifax has grown year after year. 69 00:03:06,280 --> 00:03:09,960 They've grown organically due to the housing market, and the need 70 00:03:09,960 --> 00:03:11,800 for additional credit ratings has grown. 71 00:03:12,160 --> 00:03:14,880 Knowing who you're lending money to is a really big deal. 72 00:03:15,040 --> 00:03:16,640 They play a crucial role in that. 73 00:03:17,080 --> 00:03:19,720 But if we look at this more specifically, in fact if we 74 00:03:19,720 --> 00:03:23,160 breakdown this revenue growth by segment, it paints a much 75 00:03:23,160 --> 00:03:25,320 clearer picture. We have the KP is here in 76 00:03:25,320 --> 00:03:28,000 Qualtrim. Equifax is broken up into three 77 00:03:28,000 --> 00:03:30,400 key segments. The first one is the workforce 78 00:03:30,400 --> 00:03:33,440 solution. This is the biggest and fastest 79 00:03:33,440 --> 00:03:36,960 growing segment of the company. The work number is not the only 80 00:03:36,960 --> 00:03:40,400 part of workforce solution, but it's by far the most important 81 00:03:40,400 --> 00:03:42,200 part. We also have USIS. 82 00:03:42,200 --> 00:03:44,800 This is the credit reports segment of the company. 83 00:03:44,960 --> 00:03:48,040 Of course, a good part of the business, it's better 90% of the 84 00:03:48,040 --> 00:03:49,880 businesses in the world, but again, it's not the most 85 00:03:49,880 --> 00:03:52,840 important part of this company. Then we have international where 86 00:03:52,840 --> 00:03:55,560 they bucket all of their products in total revenue. 87 00:03:55,760 --> 00:03:58,400 Internationally, this is probably been the slowest 88 00:03:58,400 --> 00:04:00,880 growing portion of the company. We look at what the company's 89 00:04:00,880 --> 00:04:04,480 doing care and the reason that I remain so bullish on it, it's 90 00:04:04,480 --> 00:04:07,640 for two reasons. First of all, we have the credit 91 00:04:07,640 --> 00:04:10,720 report part of this company. If we look at just the growth of 92 00:04:10,720 --> 00:04:14,160 that, it grows during time periods where people take out 93 00:04:14,160 --> 00:04:17,320 more loans, where interest rates are lower, where people are 94 00:04:17,320 --> 00:04:19,800 transacting more with home mortgages. 95 00:04:19,959 --> 00:04:23,840 Now organically this grows overtime anyway, but interest 96 00:04:23,840 --> 00:04:26,280 rates going down has an outsized impact on this. 97 00:04:26,720 --> 00:04:29,640 If interest rates go down in the future, which I believe they 98 00:04:29,640 --> 00:04:32,640 will, lower interest rates is a strong catalyst for this 99 00:04:32,640 --> 00:04:34,440 company. Now again, this part of the 100 00:04:34,440 --> 00:04:37,080 business I believe is better than most businesses in the 101 00:04:37,080 --> 00:04:40,080 United States. So even the the lesser good 102 00:04:40,080 --> 00:04:43,320 portion of Equifax, I still believe is better than most 103 00:04:43,320 --> 00:04:45,680 businesses. The most exciting part to me is 104 00:04:45,760 --> 00:04:48,600 the work number. It's in the Workforce Solutions. 105 00:04:48,960 --> 00:04:52,560 Now the work number, just a refresher, is a work history 106 00:04:52,560 --> 00:04:56,320 verification service where you can look up someone and see 107 00:04:56,320 --> 00:04:59,040 their entire work history, what companies they worked at, how 108 00:04:59,040 --> 00:05:02,240 long did they work there, what did they do at the company, what 109 00:05:02,240 --> 00:05:04,720 was their role and how much money were they making. 110 00:05:05,120 --> 00:05:08,600 The work number contains almost all or all of that information 111 00:05:08,600 --> 00:05:11,680 for everybody that opts in. Now, of course, they have all 112 00:05:11,680 --> 00:05:14,400 the legal rights to do it. Everybody signs off and 113 00:05:14,400 --> 00:05:16,840 participates in it. The work number has proper 114 00:05:16,840 --> 00:05:20,080 permission to get this information and there's lots of 115 00:05:20,080 --> 00:05:22,920 companies that benefit from it. The array of companies that 116 00:05:22,920 --> 00:05:26,480 benefit from work verification is massive. 117 00:05:26,800 --> 00:05:29,480 You have government entities wanting to know if you really 118 00:05:29,480 --> 00:05:32,400 have the income that you have. They've all partnered with the 119 00:05:32,400 --> 00:05:35,080 work number, both local municipalities and federal 120 00:05:35,080 --> 00:05:37,480 agencies. We also have lenders, banks, 121 00:05:37,520 --> 00:05:41,760 everybody loaning money wants to verify that you make money so 122 00:05:41,760 --> 00:05:44,640 that you can pay back the loan. You have insurance brokers 123 00:05:44,640 --> 00:05:47,280 wanting to assess your risk. You have landlords wanting to 124 00:05:47,280 --> 00:05:49,560 know that their tenants that they're renting to can really 125 00:05:49,560 --> 00:05:51,960 pay the rent and so on and so forth. 126 00:05:52,440 --> 00:05:55,280 The amount of use cases for the work number is massive. 127 00:05:55,560 --> 00:05:58,760 The product has enormous potential, and it's incredibly 128 00:05:58,760 --> 00:06:01,560 difficult to replicate. There's no company in the world 129 00:06:01,560 --> 00:06:04,400 that has accumulated the partnerships, the network and 130 00:06:04,400 --> 00:06:07,480 the database that the work number has, so they are full 131 00:06:07,480 --> 00:06:09,360 steam ahead. It's important to remember when 132 00:06:09,360 --> 00:06:12,200 you're buying companies in your portfolio to be focused on the 133 00:06:12,200 --> 00:06:15,280 basics of investing. What creates value for 134 00:06:15,280 --> 00:06:17,560 investors? Where does shareholder returns 135 00:06:17,560 --> 00:06:20,200 come from? They don't come strictly from 136 00:06:20,320 --> 00:06:23,000 innovation or how exciting the company is. 137 00:06:23,160 --> 00:06:25,280 In fact, sometimes the opposite can happen. 138 00:06:25,280 --> 00:06:27,160 Some of the most exciting companies in the world, 139 00:06:27,160 --> 00:06:30,040 so-called highly innovative companies, have been some of the 140 00:06:30,040 --> 00:06:32,400 worst investments. Arc Innovation has marketing 141 00:06:32,400 --> 00:06:35,840 materials and documents going over their highly innovative 142 00:06:35,840 --> 00:06:37,960 investment strategy. You can look at this marketing 143 00:06:37,960 --> 00:06:41,240 material and it can sound very compelling, investing in stuff 144 00:06:41,240 --> 00:06:44,960 that's disruptively innovative. Intelligent devices, autonomous 145 00:06:44,960 --> 00:06:48,200 mobility, precision therapies, neural networks, next Gen. 146 00:06:48,200 --> 00:06:52,000 cloud, digital wallets, digital asset, smart contracts, so on 147 00:06:52,000 --> 00:06:54,400 and so forth. You see this type of stuff and 148 00:06:54,400 --> 00:06:57,720 it's marketed all the time. But this isn't what generates 149 00:06:57,720 --> 00:06:59,840 shareholder returns. And that's why it's easy to 150 00:06:59,840 --> 00:07:02,600 contrast the difference in outcomes between these types of 151 00:07:02,600 --> 00:07:04,720 strategies. Arc innovation over the past 152 00:07:04,720 --> 00:07:09,360 five years has returned .42%. It's been completely flat, while 153 00:07:09,360 --> 00:07:12,200 Texas Roadhouse, a company that doesn't do much on the 154 00:07:12,200 --> 00:07:16,400 innovative front, is up 266%, not counting dividends. 155 00:07:16,520 --> 00:07:19,640 Investment returns come from free cash flow per share growth. 156 00:07:19,640 --> 00:07:22,360 They come from profitability, they come from companies, they 157 00:07:22,360 --> 00:07:25,440 come from highly profitable companies growing quickly and 158 00:07:25,440 --> 00:07:27,360 purchased at reasonable valuation. 159 00:07:27,360 --> 00:07:31,080 In My Portfolio, I hyper focus on these type of companies and 160 00:07:31,080 --> 00:07:33,640 my favorite type of company overall is the subscription 161 00:07:33,640 --> 00:07:36,440 revenue type of company. It's why in the story fund I 162 00:07:36,440 --> 00:07:39,680 have Netflix as a top position. I own Costco as another long 163 00:07:39,680 --> 00:07:41,720 term significant bet in My Portfolio. 164 00:07:41,720 --> 00:07:44,240 The way that Costco makes money is by its membership. 165 00:07:44,240 --> 00:07:46,640 It is overall a subscription based company. 166 00:07:46,640 --> 00:07:50,280 Apple transition from a hardware company to a seller of software. 167 00:07:50,360 --> 00:07:52,720 Microsoft is a subscription based company, same with 168 00:07:52,720 --> 00:07:55,320 Salesforce. S&P Global and Intuit are 169 00:07:55,320 --> 00:07:58,520 examples of two other fantastic subscription based companies. 170 00:07:58,520 --> 00:08:01,160 And then we have Equifax, which can be put into that same 171 00:08:01,160 --> 00:08:03,800 category. Equifax has a strong majority 172 00:08:03,800 --> 00:08:06,280 subscription like revenue that I believe will continue to grow in 173 00:08:06,280 --> 00:08:07,920 the future. And on top of that they're 174 00:08:07,920 --> 00:08:10,920 launching a lot of new products. Now typically I like to buy 175 00:08:10,920 --> 00:08:13,920 companies like this on a significant dip, but it doesn't 176 00:08:13,920 --> 00:08:15,880 look like we're going to get that anytime soon. 177 00:08:15,880 --> 00:08:19,160 We just had a major geopolitical event and so far the market 178 00:08:19,160 --> 00:08:21,400 isn't reacting. Now, this is something that we 179 00:08:21,400 --> 00:08:23,800 discussed that could happen in the previous episode. 180 00:08:24,040 --> 00:08:28,440 We said that the US is getting closer to directly bombing Iran. 181 00:08:28,680 --> 00:08:32,039 And we knew this because both figuratively and literally, the 182 00:08:32,120 --> 00:08:35,280 US was getting closer. There were ships and planes and 183 00:08:35,360 --> 00:08:37,960 and military and naval assets moving closer to Iran in 184 00:08:37,960 --> 00:08:41,000 preparation for this, as well as the United States president has 185 00:08:41,000 --> 00:08:43,120 been commentating on this, saying that it's a real 186 00:08:43,120 --> 00:08:45,520 possibility. Well, this weekend, of course, 187 00:08:45,520 --> 00:08:47,920 we had the news that the US directly bombed Iran. 188 00:08:47,920 --> 00:08:51,640 The US flew B2 stealth bombers with Tomahawk missiles as well 189 00:08:51,640 --> 00:08:54,480 as these MO PS massive ordnance penetrators. 190 00:08:54,560 --> 00:08:57,680 There are 30,000 LB bombs that can dive deep into the mountain 191 00:08:57,680 --> 00:08:59,880 and they're called bunker Busters. 192 00:09:00,000 --> 00:09:02,600 And the goal here was to get critical hits on these nuclear 193 00:09:02,600 --> 00:09:05,320 development sites to slow down their nuclear program. 194 00:09:05,440 --> 00:09:08,360 On the success of it, JD Vance said, I'm not going to get into 195 00:09:08,360 --> 00:09:11,120 sensitive intelligence about what we've seen on the ground 196 00:09:11,120 --> 00:09:14,360 with Iran, but we've seen a lot and I feel very confident that 197 00:09:14,360 --> 00:09:17,800 we substantially delayed the development of nuclear weapons 198 00:09:17,800 --> 00:09:19,280 and that was the goal of this attack. 199 00:09:19,280 --> 00:09:22,120 The vice president has also who insisted that this is not going 200 00:09:22,120 --> 00:09:25,640 to drag the US into a long drawn out war in the Middle East. 201 00:09:25,960 --> 00:09:29,160 He's aware that everybody is against that, that nobody wants 202 00:09:29,160 --> 00:09:30,760 that. He says that we're not at war 203 00:09:30,760 --> 00:09:33,280 with Iran, we're at war with their nuclear program and that 204 00:09:33,280 --> 00:09:35,040 these are targeted, limited strikes. 205 00:09:35,040 --> 00:09:37,160 Now, investors are currently in the process of pricing and 206 00:09:37,160 --> 00:09:40,640 judging this event, trying to weigh whether or not Iran being 207 00:09:40,640 --> 00:09:43,560 further away from nuclear development is worth the risk of 208 00:09:43,560 --> 00:09:45,600 escalated war. And as of right now, the 209 00:09:45,600 --> 00:09:48,560 market's relatively flat. I think the market is correct in 210 00:09:48,560 --> 00:09:51,200 being mostly flat today. I don't see this is a big 211 00:09:51,200 --> 00:09:53,200 bullish catalyst. There's no reason that stocks 212 00:09:53,200 --> 00:09:56,800 should surge up today, but I also don't so far see this is a 213 00:09:56,800 --> 00:09:59,560 reason to sell out of companies. Like I said, I think there's a 214 00:09:59,560 --> 00:10:02,960 chance anytime there's escalated chance of conflict that the 215 00:10:02,960 --> 00:10:05,960 market could sell off, and I would buy that dip if it 216 00:10:05,960 --> 00:10:08,400 happened. But right now it doesn't look 217 00:10:08,400 --> 00:10:10,680 like we're going to get a big sell off because of this. 218 00:10:10,760 --> 00:10:14,240 What would cause a sell off in the US stock market based on 219 00:10:14,240 --> 00:10:17,800 this conflict is continued escalation, specifically if 220 00:10:17,800 --> 00:10:20,320 other big countries join Iran in the fight. 221 00:10:20,600 --> 00:10:22,680 But right now it doesn't look like that's happening. 222 00:10:22,720 --> 00:10:25,400 Bloomberg reports that Iran's leaders are discovering that 223 00:10:25,400 --> 00:10:28,480 they're on their own against the US and Israel without a network 224 00:10:28,480 --> 00:10:31,480 of proxies and allies that have allowed them to project power in 225 00:10:31,480 --> 00:10:34,320 the Middle East and beyond. Without other larger allies 226 00:10:34,320 --> 00:10:37,680 stepping in directly to back Iran and their nuclear ambition, 227 00:10:38,000 --> 00:10:40,360 it doesn't look like this is going to escalate much beyond 228 00:10:40,360 --> 00:10:41,960 this point. Tom Lee shares a similar 229 00:10:41,960 --> 00:10:44,480 sentiment, highlighting the resilience of the stock market. 230 00:10:44,480 --> 00:10:46,960 In some ways it actually strengthens the case for stocks 231 00:10:46,960 --> 00:10:49,720 to do better into year end because at the start of this 232 00:10:49,720 --> 00:10:53,760 year we would said US bombing a nuclear facility is a Black 233 00:10:53,760 --> 00:10:58,080 Swan. Oil would be 120, stocks should 234 00:10:58,080 --> 00:11:02,760 be down 10% and then we have the event and oil is not really 235 00:11:02,760 --> 00:11:06,280 surging and stocks are up. So I'd almost say that you've 236 00:11:06,560 --> 00:11:08,400 put another stress test into the market. 237 00:11:08,560 --> 00:11:11,200 We've seen it pass it and I think it means stocks should do 238 00:11:11,200 --> 00:11:14,320 pretty well here. It all depends on this moment of 239 00:11:14,320 --> 00:11:17,680 if there's continued escalation, Iran is going to retaliate to 240 00:11:17,680 --> 00:11:19,680 some degree. The leadership knows they have 241 00:11:19,680 --> 00:11:22,720 to do at least some type of symbolic retaliation against the 242 00:11:22,720 --> 00:11:24,760 United States. But it really depends on whether 243 00:11:24,760 --> 00:11:27,880 the true stakes get meaningfully higher and higher, whether the 244 00:11:27,880 --> 00:11:29,520 market becomes concerned about this. 245 00:11:29,600 --> 00:11:32,200 One of the things that Iran could do in retaliation is 246 00:11:32,200 --> 00:11:34,240 closing something called the Strait of Hormuz. 247 00:11:34,480 --> 00:11:37,560 It is a shipping which would cause oil prices to go higher. 248 00:11:38,480 --> 00:11:42,240 I do, but you know, Brian Sullivan was off camera was 249 00:11:42,240 --> 00:11:45,520 mentioning a lot of strategic reasons why that that may not be 250 00:11:45,520 --> 00:11:47,000 the case. I'm sure he's going to have his 251 00:11:47,000 --> 00:11:51,680 views, but I I would say I'm watching oil and if oil isn't 252 00:11:51,680 --> 00:11:54,240 surging then I think it just means that the risks of straight 253 00:11:54,240 --> 00:11:55,840 the straights being closed is lower. 254 00:11:56,040 --> 00:11:58,440 There's some debate on whether or not they'll really do this or 255 00:11:58,440 --> 00:12:02,520 for how long because although it would impact U.S. oil prices, it 256 00:12:02,520 --> 00:12:04,960 also impacts Iran's economy dramatically. 257 00:12:04,960 --> 00:12:07,480 So this would be a double edged sword action from Iran. 258 00:12:07,560 --> 00:12:10,400 Now, a question for investors right now is if even an 259 00:12:10,400 --> 00:12:13,520 escalated conflict can't bring down the US stock market, 260 00:12:13,760 --> 00:12:17,040 doesn't mean that prices are so high today that there's nothing 261 00:12:17,040 --> 00:12:18,720 worth buying. Tom Lee and I agree on this 262 00:12:18,720 --> 00:12:21,920 subject that even though there's some companies, some meme stocks 263 00:12:21,920 --> 00:12:24,960 and popular social media stocks that are trading at incredible 264 00:12:24,960 --> 00:12:28,160 valuations, that isn't an indication that the entire 265 00:12:28,160 --> 00:12:32,640 market is overpriced. Similar to 20/21/2021 was unique 266 00:12:32,920 --> 00:12:35,560 and that almost nothing was undervalued. 267 00:12:35,560 --> 00:12:37,520 And that's not the market that we're currently in. 268 00:12:37,520 --> 00:12:38,960 It is. I mean, those are echoes of 269 00:12:39,280 --> 00:12:46,080 2021, which is some stocks get fantastically bizarre valuations 270 00:12:46,080 --> 00:12:51,280 and I'm not naming any. And and then there is signs of 271 00:12:51,280 --> 00:12:55,520 speculation. And, but the one thing that was 272 00:12:55,520 --> 00:12:58,200 true in 2021 that's not true now is when I meet with fund 273 00:12:58,200 --> 00:13:01,160 managers in 2021, they said there was no stock they could 274 00:13:01,160 --> 00:13:03,120 buy because everything was expensive. 275 00:13:03,560 --> 00:13:05,360 That's actually not true anymore now. 276 00:13:05,600 --> 00:13:08,360 Now the people I talked to are saying, look, the numbers have 277 00:13:08,360 --> 00:13:11,520 been better and numbers are going up, but the macro is 278 00:13:11,520 --> 00:13:14,600 making them uncertain. So there's actually a lot less 279 00:13:14,680 --> 00:13:17,320 risk taking by institutional investors. 280 00:13:18,000 --> 00:13:20,760 There's a small number of stocks that are trading at astronomical 281 00:13:20,760 --> 00:13:23,520 valuations, but there's a lot of companies that are trading at 282 00:13:23,520 --> 00:13:25,880 reasonable valuations. We'll see whether or not Tom Lee 283 00:13:25,880 --> 00:13:28,560 is right that the overall market will go up this year, but I do 284 00:13:28,560 --> 00:13:31,480 agree with him that there are many stocks to buy today. 285 00:13:31,560 --> 00:13:34,680 Now moving on, we get to the news that Tesla finally launched 286 00:13:34,680 --> 00:13:37,240 their robo taxi network. It officially happened 287 00:13:37,280 --> 00:13:39,200 yesterday. On Sunday, they had a launch 288 00:13:39,200 --> 00:13:41,040 event. They invited mostly Tesla 289 00:13:41,040 --> 00:13:44,480 influencers, people that are prominent figures in the Tesla 290 00:13:44,480 --> 00:13:46,800 community, to congregate in Austin. 291 00:13:46,800 --> 00:13:50,400 And with around 10 different robo taxis, they launched the 292 00:13:50,400 --> 00:13:52,080 event. This is just a fun event for a 293 00:13:52,080 --> 00:13:53,880 lot of people. You can tell that they're having 294 00:13:53,880 --> 00:13:56,240 fun here gathering. It's something that Tesla 295 00:13:56,240 --> 00:13:58,880 investors have been anticipating for literally years. 296 00:13:59,080 --> 00:14:02,120 Some of them have been in the stock for like 10 years talking 297 00:14:02,120 --> 00:14:04,880 about the launch of this. And so they're obviously happy 298 00:14:04,880 --> 00:14:07,160 to finally get to this point. And I think that's reasonable. 299 00:14:07,520 --> 00:14:09,960 One of the funniest things about this video, though, that the 300 00:14:09,960 --> 00:14:12,760 dancing here I think is good. I'm not criticizing that. 301 00:14:12,960 --> 00:14:16,200 But one of the funniest parts of this video that I noticed is as 302 00:14:16,200 --> 00:14:20,320 he's dancing, filming the Robotaxi launch, a Waymo drives 303 00:14:20,320 --> 00:14:22,200 by in the background. Did you catch it? 304 00:14:22,720 --> 00:14:25,880 There's the Waymo cruising by in the background. 305 00:14:26,200 --> 00:14:30,040 No driver in that driver's seat or passenger in that passenger 306 00:14:30,040 --> 00:14:31,440 seat. That thing is just driving 307 00:14:31,440 --> 00:14:33,040 itself. And that was one of the things 308 00:14:33,040 --> 00:14:36,160 that a lot of people invited to this event commented on, that 309 00:14:36,160 --> 00:14:39,280 they saw Waymo's everywhere. One of them said that they saw 310 00:14:39,280 --> 00:14:42,600 like 300 Waymo's. Everywhere they went, there was 311 00:14:42,600 --> 00:14:44,560 a Waymo. Waymo has been in this area for 312 00:14:44,560 --> 00:14:46,880 years, so they are operating at a pretty good scale here. 313 00:14:46,880 --> 00:14:48,760 Now, there's a few things to note about this event. 314 00:14:48,760 --> 00:14:51,760 The area that it launched is about four miles across. 315 00:14:51,760 --> 00:14:55,000 It's a small geofenced area. If you map it out and compare it 316 00:14:55,000 --> 00:14:58,680 against the initial area that Waymo launched, it's around half 317 00:14:58,680 --> 00:15:00,960 the size. So Tesla took a very 318 00:15:00,960 --> 00:15:03,400 conservative approach on this initial launch. 319 00:15:03,400 --> 00:15:05,160 They didn't want to take any chances. 320 00:15:05,160 --> 00:15:07,040 They launched it in a very confined area. 321 00:15:07,200 --> 00:15:09,280 You could only ride back and forth in the highlight of 322 00:15:09,280 --> 00:15:10,920 portions. Here we got to take a look at 323 00:15:10,920 --> 00:15:14,720 the Tesla Robotaxi app and for what I could see, it looks very 324 00:15:14,720 --> 00:15:17,520 similar to Uber. Obviously, the Tesla engineers 325 00:15:17,520 --> 00:15:20,800 took a few learnings from it, but it also looks really good. 326 00:15:20,840 --> 00:15:24,160 I actually really like the app. I I think it's really well done. 327 00:15:24,160 --> 00:15:26,720 It looks kind of polished here. You can zoom in. 328 00:15:26,720 --> 00:15:30,040 It just looks like Google Maps or Apple Maps or anything else. 329 00:15:30,480 --> 00:15:33,240 You can see the robotaxi's moving if you zoom in. 330 00:15:33,960 --> 00:15:36,920 You also have integrated controls so that it will 331 00:15:36,920 --> 00:15:40,720 automatically sync your Spotify, Apple Music, your Netflix, that 332 00:15:40,720 --> 00:15:43,920 type of thing with the Tesla vehicle upon entry. 333 00:15:44,080 --> 00:15:47,240 You also have some specific controls like calling support or 334 00:15:47,240 --> 00:15:49,920 pulling over at the bottom. Now there's tons of footage 335 00:15:49,920 --> 00:15:52,560 shared online. Lots of people live streaming 336 00:15:52,560 --> 00:15:54,120 drives. There's still live streaming 337 00:15:54,120 --> 00:15:57,320 drives, and I sat back and watched a couple drives and it 338 00:15:57,320 --> 00:16:00,520 was rather boring, which is a good thing if you're running a 339 00:16:00,520 --> 00:16:03,680 robotaxi network. You want boring, you want 340 00:16:03,680 --> 00:16:06,840 uneventful, you want a car simply going from one place to 341 00:16:06,840 --> 00:16:09,080 the other without anything exciting happening, and that's 342 00:16:09,080 --> 00:16:11,320 typically what happened. We have examples like this of 343 00:16:11,320 --> 00:16:14,640 someone highlighting that Tesla properly slows down for a speed 344 00:16:14,640 --> 00:16:29,480 bump. It's cool that it was able to 345 00:16:29,480 --> 00:16:32,200 recognize the speed bump and adjust the speed of the car. 346 00:16:32,200 --> 00:16:35,360 There's also people that drove that posted full length drives 347 00:16:35,360 --> 00:16:37,120 on YouTube. You can go in and just watch the 348 00:16:37,120 --> 00:16:39,520 entire thing. And again, from the most part 349 00:16:39,560 --> 00:16:42,840 everything I saw I was watching a number of drives and I thought 350 00:16:42,840 --> 00:16:44,840 it looked pretty good. I didn't see any problems with 351 00:16:44,840 --> 00:16:46,400 it. It seemed to drive smoothly. 352 00:16:46,960 --> 00:16:50,320 People in the the passenger seat, in the back seat had a 353 00:16:50,320 --> 00:16:52,520 good experience. And every one of the Tesla 354 00:16:52,520 --> 00:16:56,320 vehicles, they do have a safety passenger, someone monitoring 355 00:16:56,320 --> 00:16:58,360 the vehicle sitting there. So that's the person in the 356 00:16:58,360 --> 00:17:00,640 passenger seat there. But the ones in the back seat 357 00:17:00,640 --> 00:17:03,040 are the passengers. Now, as you can see, they're 358 00:17:03,040 --> 00:17:05,960 just cruising around. There's nothing unusual. 359 00:17:05,960 --> 00:17:08,240 You can look at the Tesla in different situations. 360 00:17:08,240 --> 00:17:11,240 It's stopping at red lights or yellow lights, yielding to 361 00:17:11,240 --> 00:17:14,680 traffic, going through all these different types of situations 362 00:17:14,680 --> 00:17:16,319 and it seems to handle them just fine. 363 00:17:16,560 --> 00:17:18,240 This is what all the footage was showing. 364 00:17:18,319 --> 00:17:20,680 So I'm sitting back pretty impressed with what's going on 365 00:17:20,680 --> 00:17:23,400 here Now. At the same time, there are some 366 00:17:23,400 --> 00:17:26,359 complaints with people saying that the pickup location is 367 00:17:26,359 --> 00:17:28,760 pretty bad. You have to, in some case, walk 368 00:17:28,880 --> 00:17:31,520 blocks and blocks to get to a pickup location. 369 00:17:31,880 --> 00:17:34,440 That's an easy fix for Tesla, something that they can likely 370 00:17:34,440 --> 00:17:37,000 change overtime with some simple updates. 371 00:17:37,240 --> 00:17:40,600 The important thing here is the driving, that Teslas are 372 00:17:40,600 --> 00:17:42,800 behaving correctly, that they're driving normally. 373 00:17:43,120 --> 00:17:46,840 And again, I watch multiple rides, full length rides, multi 374 00:17:46,840 --> 00:17:50,080 miles, and I didn't see any issues now that was the case 375 00:17:50,080 --> 00:17:52,600 until this one part of this OneDrive. 376 00:17:52,600 --> 00:17:55,920 It looks like Tesla ran into some problem with the logic or 377 00:17:55,920 --> 00:17:58,920 the mapping. Either way, something went wrong 378 00:17:58,920 --> 00:18:01,280 and it caused the Tesla to behave a little erratically 379 00:18:01,280 --> 00:18:03,120 here. Here's the exact footage, and 380 00:18:03,120 --> 00:18:05,280 this is posted on the Tesla Daily Channel. 381 00:18:33,600 --> 00:18:35,480 Now, if you didn't see it or you're just listening to the 382 00:18:35,480 --> 00:18:38,760 podcast with audio only, basically what the Tesla does 383 00:18:38,760 --> 00:18:41,200 here is it looks like it's going to turn left. 384 00:18:41,320 --> 00:18:44,120 In fact, the the mapping looks like it's going to turn left and 385 00:18:44,120 --> 00:18:47,960 then it stutters and the wheel jerks left and right while it's 386 00:18:47,960 --> 00:18:50,080 on it. It's already moved out of its 387 00:18:50,080 --> 00:18:53,240 lane in the intersection, like it's going to turn left, but 388 00:18:53,240 --> 00:18:56,160 instead of committing to the left turn lane, it looks like it 389 00:18:56,160 --> 00:19:00,200 decides to go back right. Now it's going back right while 390 00:19:00,200 --> 00:19:04,200 a car presumably behind it thought it was going to go left 391 00:19:04,200 --> 00:19:05,560 because it was initially going left. 392 00:19:05,840 --> 00:19:09,720 That car decided to pass the Tesla and now it's it's kind of 393 00:19:09,720 --> 00:19:12,400 pushing its way back in right and you can hear that driver 394 00:19:12,400 --> 00:19:15,040 behind them honk at them because they're trying to illegally 395 00:19:15,040 --> 00:19:18,200 merge back into the lane. Then when the Tesla seems like 396 00:19:18,200 --> 00:19:21,400 it doesn't have enough room to get back in the lane, it just 397 00:19:21,400 --> 00:19:25,440 crosses over these double yellow lines bypassing the other cars 398 00:19:25,440 --> 00:19:27,080 to get into the left turning lane here. 399 00:19:27,200 --> 00:19:28,920 Now this didn't result in anything. 400 00:19:28,920 --> 00:19:31,360 There is no accident, error or any big event. 401 00:19:31,760 --> 00:19:33,960 But it doesn't look great. This looks like a problem 402 00:19:33,960 --> 00:19:36,720 specifically with the navigation or full self driving. 403 00:19:36,720 --> 00:19:40,280 Now I want to highlight again. This is the only real problem I 404 00:19:40,280 --> 00:19:43,720 saw out of watching 5 or 6 full drives. 405 00:19:44,080 --> 00:19:46,800 So I am highlighting the one thing that went wrong. 406 00:19:47,360 --> 00:19:51,360 But with cars and safety, the one thing that goes wrong is the 407 00:19:51,360 --> 00:19:53,320 important thing. That's what gets highlighted. 408 00:19:53,520 --> 00:19:56,720 You don't surface all the times it got it right, you surface the 409 00:19:56,720 --> 00:19:59,520 time it got it wrong. Tesla's robo taxi network is 410 00:19:59,520 --> 00:20:02,680 going to be judged by these type of events, whether they result 411 00:20:02,680 --> 00:20:05,240 in collisions or accidents. Now it's true that Waymos do 412 00:20:05,240 --> 00:20:07,080 things like this from time to time as well. 413 00:20:07,080 --> 00:20:10,360 We have examples of a Waymo like this blocking an intersection 414 00:20:10,360 --> 00:20:13,480 blocking emergency vehicles from being able to pass for about 30 415 00:20:13,480 --> 00:20:15,680 seconds. So there's examples of 416 00:20:15,880 --> 00:20:18,440 autonomous vehicles doing this and they're never going to be 417 00:20:18,440 --> 00:20:20,640 perfect. Now, while Waymo does that from 418 00:20:20,640 --> 00:20:23,680 time to time, Waymo also has thousands of vehicles on the 419 00:20:23,680 --> 00:20:26,720 road doing 200 + 1000 rides per week. 420 00:20:27,080 --> 00:20:30,200 So they're at a much larger scale already, which makes sense 421 00:20:30,200 --> 00:20:33,600 to have more opportunities for edge cases or weird events. 422 00:20:34,040 --> 00:20:37,840 In this case, there's only 10 Tesla vehicles only for a single 423 00:20:37,840 --> 00:20:41,520 day, and it's already had a pretty big error, which I think 424 00:20:41,520 --> 00:20:44,720 is a bit concerning when you take into account the limited 425 00:20:44,720 --> 00:20:46,320 scale they're already operating at. 426 00:20:46,680 --> 00:20:49,040 They're seeing this problem on day one. 427 00:20:49,240 --> 00:20:51,280 And this isn't even an edge case. 428 00:20:51,480 --> 00:20:55,040 An edge case for an autonomous vehicle is something happening 429 00:20:55,040 --> 00:20:58,960 far out of the ordinary that only happens once in a million. 430 00:20:59,040 --> 00:21:01,200 Things like police officers being in the middle of an 431 00:21:01,200 --> 00:21:05,200 intersection, things like dogs running out from a car, things 432 00:21:05,200 --> 00:21:08,520 like fog, rain, extreme sun glare. 433 00:21:08,880 --> 00:21:10,840 But in this case, there's nothing that happens. 434 00:21:10,840 --> 00:21:12,640 It's an edge case from what I can see. 435 00:21:12,640 --> 00:21:14,840 It's a totally normal intersection with nothing 436 00:21:14,840 --> 00:21:17,760 abnormal happening. So why did the Tesla screw up on 437 00:21:17,760 --> 00:21:20,480 a normal intersection? That's a question for the Tesla 438 00:21:20,480 --> 00:21:23,400 engineers, and this is going to be a question of how quickly 439 00:21:23,400 --> 00:21:26,680 Tesla can fix these issues, how much their future updates can 440 00:21:26,680 --> 00:21:28,960 address them to make them so they don't happen at greater 441 00:21:28,960 --> 00:21:30,560 scale. The Tesla engineers are going to 442 00:21:30,560 --> 00:21:33,400 need to address these specific situations, make sure these type 443 00:21:33,400 --> 00:21:36,160 of errors don't happen in the future because they'll run into 444 00:21:36,160 --> 00:21:40,120 more and more of these type of edge cases or wacky behavior as 445 00:21:40,120 --> 00:21:41,720 they scale up their vehicle fleet. 446 00:21:41,880 --> 00:21:45,120 Bigger fleets, more cars mean more chances of crazy things 447 00:21:45,120 --> 00:21:47,200 happening. Now, overall, all things 448 00:21:47,200 --> 00:21:49,800 considered, the good and the bad, the way that this was 449 00:21:49,800 --> 00:21:52,880 conducted, I consider this a successful launch of the 450 00:21:52,880 --> 00:21:56,360 robotaxi network. I think Tesla, even in this very 451 00:21:56,360 --> 00:22:00,200 controlled environment with safety monitors, with a very 452 00:22:00,200 --> 00:22:04,000 small Geo fenced area, all of this doesn't really matter. 453 00:22:04,200 --> 00:22:07,560 The big thing that Tesla had to prove to investors is that it's 454 00:22:07,560 --> 00:22:10,680 making real steps, real definitive steps towards getting 455 00:22:10,680 --> 00:22:13,840 the robo taxi launched. And they did that this weekend. 456 00:22:14,280 --> 00:22:16,240 So you can grapple with the specifics of it. 457 00:22:16,480 --> 00:22:20,360 It's on a very small scale. They're charging $4.20 a ride. 458 00:22:20,680 --> 00:22:22,880 They have mostly influencers there with people in the 459 00:22:22,880 --> 00:22:25,680 passenger seat. There's a lot of caveats, but 460 00:22:25,680 --> 00:22:29,880 Even so, Tesla is moving in the right direction and I believe 461 00:22:29,880 --> 00:22:32,480 investors should look at this event as a bullish iterate of 462 00:22:32,480 --> 00:22:35,680 development in the company. Tesla still has a lot to prove. 463 00:22:35,800 --> 00:22:38,920 Scaling from 10 vehicles to hundreds of vehicles introduces 464 00:22:38,920 --> 00:22:42,040 lots of opportunities for edge cases and weirder things to 465 00:22:42,040 --> 00:22:45,120 happen, things that Waymo has been dealing with for years. 466 00:22:45,520 --> 00:22:48,400 So there's still a lot to be said for the future, but as of 467 00:22:48,400 --> 00:22:52,000 right now, I believe that this is an incrementally bullish move 468 00:22:52,000 --> 00:22:54,200 for Tesla. So it makes sense that the stock 469 00:22:54,200 --> 00:22:57,200 is up today, that investors are more bullish on it, and I think 470 00:22:57,200 --> 00:23:00,040 that this move is deserved. If I was a Tesla investor 471 00:23:00,280 --> 00:23:03,760 waiting for four years for this company to release the robotaxi 472 00:23:03,760 --> 00:23:06,800 network, even with the small caveats, I would still be happy 473 00:23:06,800 --> 00:23:09,560 about this change. One company that this leaves in 474 00:23:09,560 --> 00:23:11,280 the more question, I believe, is Uber. 475 00:23:11,760 --> 00:23:14,880 The only real reason that I haven't bought Uber stock is my 476 00:23:14,880 --> 00:23:17,400 concern over autonomous vehicle technology. 477 00:23:17,720 --> 00:23:21,200 Not just Tesla, but with Waymo, these companies are proving that 478 00:23:21,200 --> 00:23:25,400 this technology works, that it can work, that it can scale, and 479 00:23:25,400 --> 00:23:29,720 that it can take market share. Now, Waymo is far ahead of Tesla 480 00:23:29,720 --> 00:23:32,800 at this point, but Tesla could iteratively expand to more 481 00:23:32,800 --> 00:23:35,120 cities and saturate more territory. 482 00:23:35,120 --> 00:23:37,720 Some of the uncertainty with Uber's future is already priced 483 00:23:37,720 --> 00:23:41,120 into the company with a lower multiple and a lower valuation, 484 00:23:41,120 --> 00:23:43,800 and I share those concerns. I think the market that Uber 485 00:23:43,800 --> 00:23:47,080 controls basically all by itself right now is going to be 486 00:23:47,080 --> 00:23:49,920 challenged by this new technology over the upcoming 487 00:23:49,920 --> 00:23:52,720 decade, but we'll have to wait further to see how all this pans 488 00:23:52,720 --> 00:23:54,200 out. Now moving on, we get to this 489 00:23:54,200 --> 00:23:57,720 news story, which is a follow up of a new story, which Sam Altman 490 00:23:57,720 --> 00:24:01,440 said that Meta is offering some of Sam Altmann best employees 491 00:24:01,680 --> 00:24:06,760 $100 million signing bonuses on top of $100 million salaries. 492 00:24:07,000 --> 00:24:08,600 So just massive amounts of money. 493 00:24:08,920 --> 00:24:11,800 Altman said that so far their top talent hasn't decided to go 494 00:24:11,800 --> 00:24:13,480 with it. That's all we knew back then. 495 00:24:13,480 --> 00:24:15,920 And maybe Sam Altman was exaggerating. 496 00:24:16,440 --> 00:24:18,240 Maybe he was a little bit overstating it. 497 00:24:18,560 --> 00:24:21,640 Well, that's not the case. We have further details on this 498 00:24:21,640 --> 00:24:24,040 that it goes even deeper than you would expect. 499 00:24:24,040 --> 00:24:27,080 The smartest AI researchers and engineers have spent the past 500 00:24:27,080 --> 00:24:29,960 few months getting hit up by one of the richest men in the world. 501 00:24:30,360 --> 00:24:33,920 Mark Zuckerberg is spending his days firing off emails and 502 00:24:33,920 --> 00:24:36,880 WhatsApp messages to the sharpest minds in artificial 503 00:24:36,880 --> 00:24:39,280 intelligence. In a frenzied effort to play 504 00:24:39,280 --> 00:24:41,600 catch up, he has personally reached out. 505 00:24:41,920 --> 00:24:45,080 So not members of his team, not his recruiting staff or HR. 506 00:24:45,400 --> 00:24:49,040 He has personally reached out to hundreds of researchers, 507 00:24:49,160 --> 00:24:52,760 scientists, infrastructure engineers, product stars and 508 00:24:52,760 --> 00:24:56,560 entrepreneurs to try to get them to join a new super intelligent 509 00:24:56,560 --> 00:24:58,240 lab. He's putting together. 510 00:24:58,640 --> 00:25:01,880 Some of the people who received the messages were so surprised 511 00:25:01,880 --> 00:25:04,360 that they didn't believe it was actually really Zuckerberg. 512 00:25:04,680 --> 00:25:07,360 One person assumed it was a hoax and didn't respond for several 513 00:25:07,360 --> 00:25:09,440 days. Now that does have to be very 514 00:25:09,440 --> 00:25:13,640 odd to be one of these AI researchers and have randomly a 515 00:25:13,640 --> 00:25:17,600 celebrity status CEO like Mark Zuckerberg message you on 516 00:25:17,600 --> 00:25:21,720 WhatsApp or send you a quick message saying, hey, what's up? 517 00:25:22,320 --> 00:25:25,960 I want you to join this secret lab of super intelligent people 518 00:25:26,160 --> 00:25:29,200 building all this crazy stuff in the future, and I'll give you 519 00:25:29,200 --> 00:25:31,040 generational wealth in the process. 520 00:25:31,200 --> 00:25:33,920 So I think it's understandable that people didn't necessarily 521 00:25:33,920 --> 00:25:35,640 believe it was really him to begin with. 522 00:25:36,120 --> 00:25:38,200 So that's really what Mark Zuckerberg has been doing. 523 00:25:38,240 --> 00:25:42,120 He's also, if he can't just buy the employees, he's wanting to 524 00:25:42,120 --> 00:25:44,800 indirectly buy the employees by buying the companies they work 525 00:25:44,800 --> 00:25:46,160 at. At least in one case, he 526 00:25:46,160 --> 00:25:49,120 discussed buying a startup outright just to get the talent 527 00:25:49,120 --> 00:25:51,080 within it. While the financial incentives 528 00:25:51,080 --> 00:25:54,040 have been mouth watering, some potential candidates have been 529 00:25:54,040 --> 00:25:57,360 hesitant to join Meta Platform's efforts because the challenges 530 00:25:57,360 --> 00:26:00,280 that it faces in AI, Meta is behind. 531 00:26:00,560 --> 00:26:03,520 So even though these people are getting these crazy offers, they 532 00:26:03,520 --> 00:26:06,040 do want to align themselves with the company that will ultimately 533 00:26:06,200 --> 00:26:08,480 win an AI. Meta struggled to develop 534 00:26:08,480 --> 00:26:10,960 cutting edge artificial intelligence technology reached 535 00:26:10,960 --> 00:26:14,480 ahead in April when critics accuse the company of gaming the 536 00:26:14,480 --> 00:26:17,200 leaderboard to make a recently released AI model look better 537 00:26:17,200 --> 00:26:19,280 than it was. They also delayed the unveiling 538 00:26:19,280 --> 00:26:21,960 of a new flagship AI model, raising questions about the 539 00:26:21,960 --> 00:26:25,360 company's ability to continue advancing quickly in an industry 540 00:26:25,360 --> 00:26:28,920 wide AI arms race. Zuckerberg is reportedly furious 541 00:26:28,920 --> 00:26:30,720 that Meta is falling behind an AI. 542 00:26:31,120 --> 00:26:34,680 And now he's on this rampage of trying to buy his way brute 543 00:26:34,680 --> 00:26:36,920 force to getting the town necessary. 544 00:26:36,960 --> 00:26:39,800 Zuckerberg also held discussions with Perplexity and offered to 545 00:26:39,800 --> 00:26:42,560 buy the AI search startup, according to people familiar 546 00:26:42,560 --> 00:26:44,680 with the matter. We have the $100 million pay 547 00:26:44,680 --> 00:26:46,880 packages that he's offering to multiple people. 548 00:26:47,120 --> 00:26:49,960 And of course, he paid the 14 billion for the AI startup 549 00:26:49,960 --> 00:26:52,080 scale. Now, you can say that this leads 550 00:26:52,080 --> 00:26:55,560 to bad culture, but I don't believe that's the correct take 551 00:26:55,560 --> 00:26:58,320 care. What I see is a person that will 552 00:26:58,320 --> 00:27:00,960 stop at nothing to win the AI race. 553 00:27:01,360 --> 00:27:04,480 He will literally pay any price. He will personally recruit any 554 00:27:04,480 --> 00:27:06,320 talent. And in terms of the tactics of 555 00:27:06,320 --> 00:27:08,880 whether or not this will work or not, he may not be able to get 556 00:27:08,880 --> 00:27:11,640 every employee he wants. There are some that will be 557 00:27:11,640 --> 00:27:13,800 comfortable where they're currently at, but I believe 558 00:27:13,800 --> 00:27:16,320 overall it'll work. Zuckerberg is going to 559 00:27:16,320 --> 00:27:19,160 accumulate a lot of talent with the approach he's taking. 560 00:27:19,320 --> 00:27:22,520 Now we also have news that the stock HIMS and Hers is down 32% 561 00:27:22,520 --> 00:27:24,640 today. Even for hims and hers, this is 562 00:27:24,640 --> 00:27:27,320 a relatively big drop and the reason why is a rather big 563 00:27:27,320 --> 00:27:29,160 reason. Novo Nordisk reportedly 564 00:27:29,160 --> 00:27:31,200 terminated its collaboration with the company. 565 00:27:31,400 --> 00:27:33,840 This is a partner of Hymns and Hers, a company that they're 566 00:27:33,840 --> 00:27:36,920 working with, and not only have they terminated their agreement, 567 00:27:37,160 --> 00:27:39,680 but they've made a lot of accusations for Hymns and Hers. 568 00:27:39,680 --> 00:27:42,720 For example, they say in their release that Hymns and Hers has 569 00:27:42,720 --> 00:27:45,520 failed to adhere to the law which prohibits mass sales of 570 00:27:45,520 --> 00:27:49,800 compounded drugs under the false guise of personalization and are 571 00:27:49,800 --> 00:27:52,720 disseminating deceptive marketing that puts patient 572 00:27:52,720 --> 00:27:55,120 safety at risk. They say that we will work with 573 00:27:55,120 --> 00:27:58,880 telehealth companies to provide direct access to a Govi that 574 00:27:58,880 --> 00:28:02,080 share our commitment to patient safety and when companies engage 575 00:28:02,080 --> 00:28:05,240 in a legal sham compounding that jeopardizes the health of 576 00:28:05,240 --> 00:28:07,840 Americans, we will continue to take action. 577 00:28:08,360 --> 00:28:11,640 The quote semi glutide active pharmaceutical ingredients that 578 00:28:11,640 --> 00:28:15,280 are in the knock off drugs sold by telehealth entities and 579 00:28:15,280 --> 00:28:18,080 compounding pharmacies are manufactured by foreign 580 00:28:18,080 --> 00:28:20,880 suppliers in China. So they say that they're putting 581 00:28:20,880 --> 00:28:24,680 customers safety at risk, that they're an illegal sham and that 582 00:28:24,680 --> 00:28:27,680 their compounded drugs are made in pharmacies in China. 583 00:28:27,840 --> 00:28:29,800 Now for investors in this company, this shouldn't be a 584 00:28:29,800 --> 00:28:32,640 huge shock. His and hers is in an industry 585 00:28:32,640 --> 00:28:35,400 that's highly litigious. These type of legal problems and 586 00:28:35,400 --> 00:28:37,600 disagreements happen all the time in the Pharmaceutical 587 00:28:37,600 --> 00:28:40,000 industry. They also happen more frequently 588 00:28:40,280 --> 00:28:43,440 in industries that HIMS and HERS compete in newer verticals of 589 00:28:43,440 --> 00:28:46,680 pharmaceuticals like telehealth. In terms of risk factors for a 590 00:28:46,680 --> 00:28:49,800 company, there's few that have more lawsuit risk than HIMS and 591 00:28:49,800 --> 00:28:52,240 HERS, so investors in it are going to see this type of 592 00:28:52,240 --> 00:28:54,920 volatility overtime. Now finally, we get to news that 593 00:28:54,920 --> 00:28:57,720 Amazon has launched a second batch of Kuiper Internet 594 00:28:57,720 --> 00:28:59,720 satellites. This is a portion of Amazon's 595 00:28:59,720 --> 00:29:01,760 business that if you're not paying attention to, you may 596 00:29:01,760 --> 00:29:04,360 forget that they actually have. Amazon has so many good 597 00:29:04,360 --> 00:29:07,920 businesses that Project Kuiper, this satellite business is kind 598 00:29:07,920 --> 00:29:09,600 of on the back burners. It's one of these things that 599 00:29:09,600 --> 00:29:12,480 investors don't really mention all that often, but could end up 600 00:29:12,480 --> 00:29:15,640 being incredibly valuable. And the Project Kuyper business 601 00:29:15,640 --> 00:29:17,840 is growing. It's taking bigger and bigger 602 00:29:17,840 --> 00:29:19,960 steps to get to real profitability. 603 00:29:19,960 --> 00:29:22,160 Now they're using different partners to launch these 604 00:29:22,160 --> 00:29:24,320 satellites into the air. They say that this one was 605 00:29:24,320 --> 00:29:27,840 launched using Alliance rockets and it carried 27 Kuyper 606 00:29:27,840 --> 00:29:29,520 satellites. They say that they're continuing 607 00:29:29,520 --> 00:29:32,600 this new chapter in low Earth orbit satellite connectivity. 608 00:29:32,600 --> 00:29:36,120 Now to compare this to Starlink. Starlink currently has around 609 00:29:36,160 --> 00:29:38,520 8000 satellites orbiting the earth. 610 00:29:38,840 --> 00:29:41,320 Starlink of course has those nice little dishes you hook up 611 00:29:41,320 --> 00:29:43,200 to. You have Internet access 612 00:29:43,200 --> 00:29:46,320 basically anywhere in the world. I have two Starlinks at home. 613 00:29:46,560 --> 00:29:49,320 I have the Starlink 3 and the Starlink mini and they are 614 00:29:49,320 --> 00:29:51,960 amazing product. Anytime I plug them in and point 615 00:29:51,960 --> 00:29:55,280 them at the sky, I have high speed Internet within 5 minutes. 616 00:29:55,720 --> 00:29:59,000 So this is an incredible product that has enormous applications. 617 00:29:59,280 --> 00:30:02,320 Amazon is basically copying the playbook, trying to get up 618 00:30:02,400 --> 00:30:05,080 enough Kuiper satellites to be able to offer Internet 619 00:30:05,080 --> 00:30:07,120 capabilities. I think this is actually a 620 00:30:07,120 --> 00:30:10,280 really big deal and I'm glad that this is included in the 621 00:30:10,280 --> 00:30:13,000 Amazon bucket and not as a separate private company. 622 00:30:13,320 --> 00:30:15,920 I'm sure that Tesla investors would like to have Starlink as 623 00:30:15,920 --> 00:30:18,440 part of the company. I think if you put a poll, most 624 00:30:18,440 --> 00:30:21,080 of them would want that. In the case of Amazon, you're 625 00:30:21,080 --> 00:30:25,320 getting the early starting of a Starlink like company, but it is 626 00:30:25,320 --> 00:30:27,520 part of Amazon now. It's gonna be for this episode. 627 00:30:27,600 --> 00:30:29,440 Hope you enjoyed seeing the next one.