1 00:00:00,080 --> 00:00:02,680 Welcome back everyone. We've had some big news over the 2 00:00:02,680 --> 00:00:05,120 past couple of days. We've had two companies really 3 00:00:05,120 --> 00:00:07,480 talk about different developments they're doing with 4 00:00:07,560 --> 00:00:09,480 AI. The first one is Open AI. 5 00:00:09,480 --> 00:00:13,080 Open AI scheduled for their developer conference to be one 6 00:00:13,080 --> 00:00:15,880 day in advance of Google's and they showed off their 7 00:00:15,880 --> 00:00:18,320 capabilities. And of course, the very next day 8 00:00:18,320 --> 00:00:20,000 we had Google's developer conference. 9 00:00:20,000 --> 00:00:23,120 That was yesterday where they showed off their capabilities 10 00:00:23,320 --> 00:00:25,600 and of course these two companies are going back and 11 00:00:25,600 --> 00:00:28,720 forth. It's the battle over AI over 12 00:00:28,720 --> 00:00:32,960 ChatGPT and Gemini over artificial assistance. 13 00:00:33,240 --> 00:00:36,080 Now what I want to do in this episode is go over a little 14 00:00:36,080 --> 00:00:39,000 highlight of both of them and kind of compare and contrast. 15 00:00:39,200 --> 00:00:41,320 We have two different companies here taking two different 16 00:00:41,320 --> 00:00:44,160 approaches, but they're really competing over the same thing. 17 00:00:44,280 --> 00:00:46,920 We'll go over who's actually winning in the Say I race. 18 00:00:47,000 --> 00:00:49,600 Now, of course, we also have a lot of other news to get to. 19 00:00:49,600 --> 00:00:54,600 The former SEC chair Jay Clayton Win on a CNBC, and he expressed 20 00:00:54,600 --> 00:00:57,920 his disappointment and frustration over the meme stock 21 00:00:57,920 --> 00:01:00,400 craze. We have news that Walmart is on 22 00:01:00,400 --> 00:01:03,960 track of being taken over as the largest retailer by Amazon. 23 00:01:04,120 --> 00:01:07,000 We also have a report that Amazon is pushing further and 24 00:01:07,000 --> 00:01:10,720 further into traditional media, taking advertiser dollars from 25 00:01:10,720 --> 00:01:13,360 cable TV. Another headline is that Netflix 26 00:01:13,360 --> 00:01:15,520 is officially streaming live sports. 27 00:01:15,520 --> 00:01:17,960 They've entered into this category from their own blog 28 00:01:17,960 --> 00:01:19,360 posts. They say Netflix will be the 29 00:01:19,360 --> 00:01:22,440 home of live NFL games this Christmas Day. 30 00:01:22,560 --> 00:01:25,760 And then finally, does Polet give you 2 small serving sizes? 31 00:01:26,040 --> 00:01:29,000 Well, there is currently an online trend of very frustrated 32 00:01:29,000 --> 00:01:32,200 people that aren't getting big enough burrito bowls and they're 33 00:01:32,200 --> 00:01:33,880 taking their frustration to TikTok. 34 00:01:34,120 --> 00:01:36,720 They're actually calling for boycotts on the company. 35 00:01:37,040 --> 00:01:39,200 We'll be discussing this and of course much more. 36 00:01:39,280 --> 00:01:41,720 Now, as I'm sure most of you have observed, there's major 37 00:01:41,720 --> 00:01:44,400 themes that drive the market over time, things that people 38 00:01:44,400 --> 00:01:47,480 want to invest in because it's the new driving, innovative 39 00:01:47,480 --> 00:01:49,960 force in the market this time period. 40 00:01:50,040 --> 00:01:52,120 That theme is artificial intelligence. 41 00:01:52,600 --> 00:01:55,320 We know that it's a buzz term. Some companies try to put 42 00:01:55,320 --> 00:01:57,800 themselves in the artificial intelligence bucket when they're 43 00:01:57,800 --> 00:01:59,920 really not. But it is a major thing. 44 00:01:59,920 --> 00:02:01,840 And artificial intelligence is real. 45 00:02:01,840 --> 00:02:03,560 It's present. It's actually generating 46 00:02:03,560 --> 00:02:05,560 revenue. That's how you tell something's 47 00:02:05,560 --> 00:02:08,759 actually a real product when it's generating sales and 48 00:02:08,759 --> 00:02:10,960 profits. And artificial intelligence is 49 00:02:10,960 --> 00:02:13,720 far past that point. We know from companies like 50 00:02:13,720 --> 00:02:16,920 NVIDIA that there is massive demand for AI. 51 00:02:17,400 --> 00:02:21,440 Now, I'm invested in a couple companies that have a lot to do 52 00:02:21,440 --> 00:02:24,240 with artificial intelligence. In my main portfolio, the 53 00:02:24,240 --> 00:02:27,760 passive income portfolio. I'm invested in tech companies 54 00:02:28,440 --> 00:02:31,160 like Salesforce, which is a big AI company. 55 00:02:31,160 --> 00:02:34,320 They have AI interwoven into everything they do, but I'm also 56 00:02:34,320 --> 00:02:37,720 invested into Microsoft. Microsoft has a partnership with 57 00:02:37,760 --> 00:02:40,440 Open AI. They're a major investor in Open 58 00:02:40,440 --> 00:02:42,960 AI. They allow Open AI to train on 59 00:02:42,960 --> 00:02:45,320 their Azure cloud. So they're also giving 60 00:02:45,320 --> 00:02:47,640 infrastructure and support to Open AI. 61 00:02:48,000 --> 00:02:50,320 So I'm invested in Microsoft, still very bullish on the 62 00:02:50,320 --> 00:02:53,320 company and all these other companies that are big players 63 00:02:53,320 --> 00:02:55,960 in AI. Again, Salesforce is 1, but you 64 00:02:55,960 --> 00:02:59,080 also have Apple that may be partnering with Open AI to 65 00:02:59,080 --> 00:03:02,760 integrate it into their devices. In my financial category, if you 66 00:03:02,760 --> 00:03:06,160 listen to the earnings call of every one of these companies, 67 00:03:06,160 --> 00:03:09,600 S&P Global is a big data company and they talk at length of 68 00:03:09,600 --> 00:03:12,560 artificial intelligence into it's a tech company that builds 69 00:03:12,560 --> 00:03:15,680 upon artificial intelligence. So all of these companies are 70 00:03:15,680 --> 00:03:19,400 trying to move into AI as fast as they can, but one of the 71 00:03:19,400 --> 00:03:22,480 companies that's had the biggest head start, the biggest lead and 72 00:03:22,480 --> 00:03:24,800 some of the biggest talent is Google. 73 00:03:25,080 --> 00:03:27,480 They're a company that I'm invested in, in my secondary 74 00:03:27,480 --> 00:03:30,640 portfolio called the Story Fund. I track both of these publicly 75 00:03:30,640 --> 00:03:33,120 every single week. Now in the Story Fund, I have 76 00:03:33,120 --> 00:03:35,240 Google as the third largest position. 77 00:03:35,560 --> 00:03:38,000 I invest in this company primarily because of Google 78 00:03:38,000 --> 00:03:40,880 Cloud, but I also like their core business, Google Search. 79 00:03:41,160 --> 00:03:43,560 I don't think their market shares being eroded, but I also 80 00:03:43,560 --> 00:03:45,880 believe that Google's one of the biggest competitors in the 81 00:03:45,880 --> 00:03:48,040 forefront of AI. They've been working on this 82 00:03:48,040 --> 00:03:50,760 stuff for years now. Out of this battle, you have all 83 00:03:50,760 --> 00:03:53,560 the players, you have all the kind of secondary companies, you 84 00:03:53,560 --> 00:03:56,280 have the ones like this, sales forces and intuits that are 85 00:03:56,440 --> 00:03:59,400 using AI, but they're not really at the forefront of developing 86 00:03:59,400 --> 00:04:00,840 it. And then you have the companies 87 00:04:00,840 --> 00:04:05,320 really developing artificial intelligence that is Open AI and 88 00:04:05,320 --> 00:04:06,960 Google. These are two of the companies 89 00:04:06,960 --> 00:04:08,680 that are at the very forefront of that. 90 00:04:08,920 --> 00:04:11,360 And both of them just had their developer conference. 91 00:04:11,440 --> 00:04:15,400 Let's start off by looking at an example of Open AI demoing their 92 00:04:15,400 --> 00:04:17,440 artificial intelligence assistant. 93 00:04:17,720 --> 00:04:19,240 And this is what they focused on. 94 00:04:19,560 --> 00:04:22,120 An assistant that can really just help you do all these 95 00:04:22,120 --> 00:04:26,320 tasks. Hello there, I'm here with my 96 00:04:26,320 --> 00:04:30,920 son and I love you to tutor him on this math problem, but don't 97 00:04:30,920 --> 00:04:33,120 give him the answer. You can ask questions and nudge 98 00:04:33,120 --> 00:04:35,720 him in the right direction, but I really want to make sure he 99 00:04:35,720 --> 00:04:38,440 understands it himself. And he's here in the room so you 100 00:04:38,440 --> 00:04:42,320 can talk to him directly. See the amount of context he 101 00:04:42,320 --> 00:04:45,080 gave the artificial intelligence, explaining that 102 00:04:45,080 --> 00:04:48,360 it's his son he wants not not just for you to give him the 103 00:04:48,360 --> 00:04:51,600 answer, but to help him learn. And he's in the room right now, 104 00:04:51,600 --> 00:04:53,160 so you can speak directly to him. 105 00:04:53,560 --> 00:04:56,640 A lot of context. And it's it's insane that this 106 00:04:56,640 --> 00:04:59,840 artificial intelligence can take in all of that context and use 107 00:04:59,840 --> 00:05:02,000 all of it appropriately. And then you listen to the 108 00:05:02,000 --> 00:05:04,400 answer the opening eyes Assistant gives. 109 00:05:04,760 --> 00:05:07,840 And it feels very human like, very, very human like. 110 00:05:09,640 --> 00:05:13,400 Of course, I'd be happy to help. Let's look at the problem 111 00:05:13,400 --> 00:05:18,160 together. Can you first identify which 112 00:05:18,160 --> 00:05:22,400 sides of the triangle are the opposite, adjacent and 113 00:05:22,400 --> 00:05:25,440 hypotenuse? Relative to angle alpha. 114 00:05:26,320 --> 00:05:29,440 All right, so I'm pretty sure this is the angle alpha right 115 00:05:29,440 --> 00:05:32,720 here, right? Perfect, correct. 116 00:05:33,160 --> 00:05:36,240 Now, looking at the triangle, which side do you think is the 117 00:05:36,240 --> 00:05:40,360 hypotenuse? That's the basic example, and it 118 00:05:40,360 --> 00:05:43,400 it seems magical, just like Sam Altman described. 119 00:05:43,400 --> 00:05:45,600 It's kind of magical because it feels like there's a tutor 120 00:05:45,600 --> 00:05:49,680 sitting in the room with you, and this has huge implications. 121 00:05:49,680 --> 00:05:51,760 It has, it has huge possibilities. 122 00:05:51,880 --> 00:05:53,760 We already have a situation where there's not enough 123 00:05:53,760 --> 00:05:56,800 teachers and there's more people needing one-on-one tutoring, so 124 00:05:56,800 --> 00:05:59,720 this could come in very handy. It wouldn't replace teachers, it 125 00:05:59,720 --> 00:06:03,120 would just help them do their job, help kids catch up, and it 126 00:06:03,120 --> 00:06:05,520 would help kids accelerate that are exceptionally smart. 127 00:06:05,640 --> 00:06:08,200 So obviously there's a mass amount of opportunities, and 128 00:06:08,200 --> 00:06:10,280 this is basically what Open AI demoed. 129 00:06:10,480 --> 00:06:13,120 They demoed the strength of their artificial intelligence 130 00:06:13,120 --> 00:06:14,800 assistant. It did a lot of other things, 131 00:06:14,800 --> 00:06:17,960 like live language translation. You could talk in one language, 132 00:06:17,960 --> 00:06:20,200 it would spit it out in a different language in a live 133 00:06:20,200 --> 00:06:23,040 conversation. It did things like photo 134 00:06:23,040 --> 00:06:25,160 recognition. It would show you that it 135 00:06:25,160 --> 00:06:27,480 recognizes your surroundings and it would talk to you. 136 00:06:27,920 --> 00:06:32,680 And overall, the entire demo from Open AI felt a lot like one 137 00:06:32,680 --> 00:06:36,200 particular movie. It felt like her the movie with 138 00:06:36,200 --> 00:06:38,880 Joaquin Phoenix where he falls in love with an operating 139 00:06:38,880 --> 00:06:41,560 system. It really felt a lot like that 140 00:06:41,560 --> 00:06:43,640 movie. But overall, Opening Eyes demo 141 00:06:43,640 --> 00:06:45,600 was live. It was incredibly impressive and 142 00:06:45,600 --> 00:06:48,160 it was focused specifically on artificial intelligence 143 00:06:48,280 --> 00:06:51,760 assistance, like having a very smart secretary, someone that 144 00:06:51,760 --> 00:06:54,440 really knows a lot about everything, follow you along 145 00:06:54,440 --> 00:06:56,640 throughout the day and converse with you and answer your 146 00:06:56,640 --> 00:06:59,400 questions. It's almost like having a super 147 00:06:59,400 --> 00:07:03,120 advanced Siri that just is with you in your pocket and will 148 00:07:03,120 --> 00:07:06,480 answer any question you want. That was opening Eyes, major 149 00:07:06,480 --> 00:07:09,320 selling point in this demo, and they're pushing a lot of these 150 00:07:09,320 --> 00:07:12,560 updates out right now. Now, if we contrast that with 151 00:07:12,560 --> 00:07:16,200 what Google did, they took a different approach in Google's 152 00:07:16,200 --> 00:07:18,880 developer conference. They showed off a lot wider 153 00:07:18,880 --> 00:07:21,160 breadth of capability. Let's go ahead and just take a 154 00:07:21,160 --> 00:07:23,680 look at some of the highlights. The first thing they showed off 155 00:07:23,680 --> 00:07:26,960 is an advanced photo search. It knows the cars that appear 156 00:07:26,960 --> 00:07:31,080 often, it triangulates which one is yours and just tells you the 157 00:07:31,080 --> 00:07:34,320 license plate number. You can even follow up with 158 00:07:34,320 --> 00:07:38,320 something more complex. Show me how Lusia's swimming has 159 00:07:38,320 --> 00:07:40,320 progressed. Here. 160 00:07:40,760 --> 00:07:44,680 Gemini goes beyond a simple search, recognizing different 161 00:07:44,680 --> 00:07:48,560 contexts from doing laps in the pool, the snorkeling in the 162 00:07:48,560 --> 00:07:51,200 ocean. Google's leveraging their Google 163 00:07:51,200 --> 00:07:54,680 Photos integration with Gemini so that it can give you further 164 00:07:54,680 --> 00:07:57,880 context into your photo history, something that Open AI can't do 165 00:07:57,880 --> 00:07:59,600 because they don't have a million photos of you. 166 00:07:59,800 --> 00:08:03,200 Google was also very quick to demonstrate their infrastructure 167 00:08:03,200 --> 00:08:06,800 advantage, how they're not just an AI company, but they have 168 00:08:06,800 --> 00:08:08,640 everything vertically integrated. 169 00:08:08,880 --> 00:08:12,200 They have the AI software on top of the huge infrastructure to 170 00:08:12,200 --> 00:08:15,280 power it. So today we are expanding the 171 00:08:15,280 --> 00:08:18,200 context window with two million tokens. 172 00:08:19,880 --> 00:08:23,200 This represents the next step on our journey towards the ultimate 173 00:08:23,200 --> 00:08:26,440 goal of infinite context. They show how it's not just a 174 00:08:26,440 --> 00:08:29,080 thing on your phone that you aim at different things to try to 175 00:08:29,080 --> 00:08:32,400 ask questions, but since they have such a huge breadth of 176 00:08:32,400 --> 00:08:35,240 different software and services, they have the advantage of 177 00:08:35,240 --> 00:08:38,880 putting Gemini into all of this, like Gmail for example. 178 00:08:39,440 --> 00:08:42,600 Is an hour long. If it's from Google meet, you 179 00:08:42,600 --> 00:08:44,840 can ask Gemini to give you the highlights. 180 00:08:45,880 --> 00:08:48,120 There's a parents group looking for volunteers. 181 00:08:48,200 --> 00:08:51,320 You're free that day. Of course, Gemini can draft a 182 00:08:51,320 --> 00:08:53,400 reply. They also went on and showed off 183 00:08:53,400 --> 00:08:57,280 something called Notebook LM. So this is a new thing from 184 00:08:57,280 --> 00:09:00,320 Google where it it looks like a notebook where you can have 185 00:09:00,320 --> 00:09:03,960 conversations, but it actually takes notes from meetings and 186 00:09:03,960 --> 00:09:06,760 different notes on different subjects and it has an AI 187 00:09:06,760 --> 00:09:10,440 conversation with it and you can actually interject with this AI 188 00:09:10,440 --> 00:09:13,520 conversation. He also gives the example of 189 00:09:13,520 --> 00:09:17,400 teaching something to his son. And what's amazing is that my 190 00:09:17,400 --> 00:09:21,640 son and I can join into the conversation and steer it 191 00:09:21,640 --> 00:09:25,720 whichever direction we want when I tap join. 192 00:09:26,960 --> 00:09:28,400 Hold on, we have a question. What's up, Josh? 193 00:09:29,520 --> 00:09:31,920 Yeah. Can you give my son Jimmy a 194 00:09:31,920 --> 00:09:33,440 basketball example? Hey. 195 00:09:37,640 --> 00:09:41,840 Jimmy, that's a fantastic idea. Basketball is actually a great 196 00:09:41,840 --> 00:09:43,760 way to visualize force and motion. 197 00:09:43,760 --> 00:09:46,360 Let's break it down. OK, so first imagine a 198 00:09:46,360 --> 00:09:48,080 basketball just sitting there on. 199 00:09:48,840 --> 00:09:53,000 Both of those voices, both the male and female voice, are AI. 200 00:09:53,080 --> 00:09:55,320 They sound so realistic, just like Open AI. 201 00:09:55,360 --> 00:09:58,520 They sound really good, but they're both AI voices now. 202 00:09:58,520 --> 00:10:01,520 They also showed off the lens where you can look through on 203 00:10:01,520 --> 00:10:04,360 your video camera. Similar to Open AI, it'll give 204 00:10:04,360 --> 00:10:06,040 you context about what you're looking at. 205 00:10:06,240 --> 00:10:08,960 It obviously understands on the fly everything that you're 206 00:10:08,960 --> 00:10:11,440 pointing the camera AT and it will talk with you and explain 207 00:10:11,440 --> 00:10:14,320 what it is. When I I was watching this, I 208 00:10:14,320 --> 00:10:16,320 thought that Open AI is a little bit better. 209 00:10:16,360 --> 00:10:18,520 Honestly, it sounded a little bit more fluid, but it's 210 00:10:18,520 --> 00:10:21,040 basically the same idea. Both Google and Open AI are 211 00:10:21,040 --> 00:10:22,520 trying to do the same thing here. 212 00:10:22,640 --> 00:10:25,040 Google also showed off that they have this in glasses form. 213 00:10:25,040 --> 00:10:27,880 So she's wearing glasses now with a camera and it's giving 214 00:10:27,880 --> 00:10:29,720 her context. Google went over the 215 00:10:29,720 --> 00:10:32,880 advancements in their photo generative tools like Imagine 3. 216 00:10:33,680 --> 00:10:37,120 Today I'm so excited to introduce Imagine 3. 217 00:10:37,560 --> 00:10:39,200 Imagine Three is more photo realistic. 218 00:10:39,440 --> 00:10:41,760 You can literally count the whiskers on its snout with 219 00:10:41,800 --> 00:10:45,080 richer details like this incredible sunlight in the shot 220 00:10:45,160 --> 00:10:48,000 and fewer visual artifacts or distorted images. 221 00:10:48,320 --> 00:10:51,040 They also shifted over. From images to music with a 222 00:10:51,040 --> 00:10:54,600 music AI sandbox. A suite of professional music AI 223 00:10:54,600 --> 00:10:57,320 tools that can create new instrumental sections from 224 00:10:57,320 --> 00:11:00,080 scratch. Transfer styles between tracks. 225 00:11:01,200 --> 00:11:03,960 They talked about VO, the new generative video tool where it 226 00:11:03,960 --> 00:11:07,520 can take text prompts like a fast racing car, and it makes 227 00:11:07,520 --> 00:11:10,000 videos from it. Now they say that you can extend 228 00:11:10,000 --> 00:11:12,720 the amount of time you can change the context, and it's in 229 00:11:12,720 --> 00:11:16,840 1080, so the actual resolution is pretty high for generative 230 00:11:16,840 --> 00:11:18,560 video. The thing that impressed me the 231 00:11:18,560 --> 00:11:22,000 most about Google's capabilities was not how good it was at one 232 00:11:22,000 --> 00:11:25,120 particular thing, but how many things they're working on at 233 00:11:25,120 --> 00:11:27,080 once. That was the overall feeling I 234 00:11:27,080 --> 00:11:29,680 got from it. With Open AI, you had a super 235 00:11:29,680 --> 00:11:33,760 well polished tool that was really good at like one thing, 236 00:11:33,920 --> 00:11:36,480 which is being an artificial intelligence assistance. 237 00:11:36,880 --> 00:11:39,160 Now I think that's a good strategy from Open AI because 238 00:11:39,160 --> 00:11:41,080 that's a very good thing to be good at. 239 00:11:41,320 --> 00:11:43,880 So they're going in a good direction trying to specialize 240 00:11:43,880 --> 00:11:45,880 in this artificial intelligence assistance. 241 00:11:46,240 --> 00:11:48,840 But I compare it to what Google's doing and they're just 242 00:11:48,840 --> 00:11:51,800 taking different approaches. Google's breadth of things 243 00:11:51,800 --> 00:11:53,920 they're working on is so much wider. 244 00:11:54,000 --> 00:11:57,600 They're auto answering emails, auto returning products, they're 245 00:11:57,600 --> 00:12:00,600 generating different videos. They also have the artificial 246 00:12:00,600 --> 00:12:03,360 intelligence assistance and then it continues on. 247 00:12:03,480 --> 00:12:06,000 They're wrapping AI into their search engine. 248 00:12:06,200 --> 00:12:08,800 The advancements in their search engine are what I believe are 249 00:12:08,800 --> 00:12:10,440 the most important part of this meeting. 250 00:12:10,760 --> 00:12:14,240 Find the best yoga or Pilates studios in Boston and show you 251 00:12:14,240 --> 00:12:17,400 details on their intro offers and The Walking time from Beacon 252 00:12:17,400 --> 00:12:19,960 Hill. You get some studios with great 253 00:12:19,960 --> 00:12:23,200 ratings and their introductory offers and you can see the 254 00:12:23,200 --> 00:12:26,920 distance for each like this one. It's just a 10 minute walk away. 255 00:12:27,360 --> 00:12:30,000 This is like Google. Search on Hyperdrive Google 256 00:12:30,000 --> 00:12:32,600 search where you can add in a ton of different contexts and 257 00:12:32,600 --> 00:12:35,840 you can make really elaborate questions and it will understand 258 00:12:35,840 --> 00:12:38,800 the advanced context. Think of more examples of this 259 00:12:38,800 --> 00:12:42,440 advanced Google search where you can ask it to create meal plans 260 00:12:42,440 --> 00:12:44,440 or trip plans and it does it for you. 261 00:12:45,400 --> 00:12:48,240 And you can export your meal plan or get the ingredients as a 262 00:12:48,240 --> 00:12:49,880 list. There's been a lot of chatter 263 00:12:49,880 --> 00:12:54,600 about LLM's like proximity or ChatGPT taking market share from 264 00:12:54,600 --> 00:12:56,960 Google search, and I just don't see that happening. 265 00:12:57,280 --> 00:13:00,160 Especially with this advanced Google search that interwees 266 00:13:00,200 --> 00:13:03,040 Google search with artificial intelligence giving it these 267 00:13:03,040 --> 00:13:05,440 advanced capabilities. I think it's now becoming even 268 00:13:05,440 --> 00:13:07,880 less likely that Google search loses market share. 269 00:13:08,040 --> 00:13:10,840 Google continues to add on all these little AI advancements to 270 00:13:10,840 --> 00:13:13,560 Gmail, which are things that they couldn't do without these 271 00:13:13,560 --> 00:13:15,680 investments in AI and their infrastructure. 272 00:13:16,000 --> 00:13:18,480 And again, no one else can replicate this because no one 273 00:13:18,480 --> 00:13:20,720 else has Gmail. It's just Google that owns these 274 00:13:20,720 --> 00:13:23,840 properties. Gemini now has an advanced trip 275 00:13:23,840 --> 00:13:25,760 planning tool. Or if you're focusing on a 276 00:13:25,760 --> 00:13:29,360 vacation or traveling somewhere, you can lay out exactly where 277 00:13:29,360 --> 00:13:32,920 you're going, how long, the type of money you want to spend on 278 00:13:32,920 --> 00:13:36,520 this trip, and it will give you an entire itinerary tailored to 279 00:13:36,520 --> 00:13:38,000 the exact thing you're typing in. 280 00:13:38,160 --> 00:13:40,360 In some ways, it looks like Google's actually expanding 281 00:13:40,360 --> 00:13:42,680 their lead in search and information. 282 00:13:42,800 --> 00:13:45,400 They're not losing it. And this conference continued on 283 00:13:45,400 --> 00:13:48,800 with more examples of AI being used with different applications 284 00:13:48,800 --> 00:13:51,560 in different contexts. And I believe that's the biggest 285 00:13:51,560 --> 00:13:53,840 differentiator between Open AI and Google. 286 00:13:54,040 --> 00:13:57,280 Open AI is a very highly polished artificial intelligence 287 00:13:57,560 --> 00:14:01,160 used for very specific reasons. Google is a massive 288 00:14:01,160 --> 00:14:03,720 infrastructure company with massive amounts of different 289 00:14:03,720 --> 00:14:06,560 properties and context to wrap their AI into. 290 00:14:06,640 --> 00:14:08,880 So when we look at these two companies next to each other, 291 00:14:08,880 --> 00:14:12,480 Google's narrowing the gap with its AI capabilities, but it also 292 00:14:12,480 --> 00:14:14,640 has this massive infrastructure advantage. 293 00:14:14,880 --> 00:14:18,160 Open AI is going to have to partner with bigger companies to 294 00:14:18,160 --> 00:14:19,800 continue to develop like they are. 295 00:14:20,120 --> 00:14:22,520 So I look at them in different categories and as far as I'm 296 00:14:22,520 --> 00:14:25,760 concerned, when I look at Google and my investment in the 297 00:14:25,760 --> 00:14:28,840 company, I currently have a $41,000 position. 298 00:14:29,480 --> 00:14:32,440 This has been a company that I've owned for some time, and as 299 00:14:32,440 --> 00:14:35,680 of right now I really just have no concerns owning them. 300 00:14:35,880 --> 00:14:38,280 As far as we can see right now, Google's still on track. 301 00:14:38,440 --> 00:14:41,440 Now moving on, we get to the continued news developing of 302 00:14:41,440 --> 00:14:43,760 GameStop. We know that Roaring Kitty made 303 00:14:43,760 --> 00:14:48,320 his epic return by tweeting an ominous meme of a gamer leaning 304 00:14:48,320 --> 00:14:51,200 forward in his chair, even though it didn't even reference 305 00:14:51,200 --> 00:14:52,760 GameStop it. Caused the stock. 306 00:14:52,760 --> 00:14:56,440 To immediately go up 100% as many people got excited that it 307 00:14:56,440 --> 00:14:59,280 was the first time that Keith Gill or Roaring Kitty had 308 00:14:59,280 --> 00:15:02,360 tweeted in over three years. Now, if we look at GameStop 309 00:15:02,360 --> 00:15:05,400 today, of course like you would expect, it's a bit of a roller 310 00:15:05,400 --> 00:15:08,440 coaster. The stock is down 32% on the day 311 00:15:08,720 --> 00:15:12,720 after going up like 120%. And then it's having its ups and 312 00:15:12,720 --> 00:15:15,920 downs during the day. You have day traders, meme 313 00:15:15,920 --> 00:15:18,440 stirs. People like Dave Portnoy betting 314 00:15:18,440 --> 00:15:21,800 on the stock using leverage and options, and they're trying to 315 00:15:21,800 --> 00:15:24,080 get ahead of it, trying to get out of it. 316 00:15:24,280 --> 00:15:27,560 The stock has been halted repeatedly over and over again 317 00:15:27,840 --> 00:15:31,720 by the SEC, and as always, this draws a lot of media attention, 318 00:15:31,720 --> 00:15:33,320 a lot of highlights, a lot of headlines. 319 00:15:33,520 --> 00:15:37,600 And we have here the SEC chair, or at least the former SEC 320 00:15:37,600 --> 00:15:41,600 chair, making an appearance on CNBC to show his disdain of 321 00:15:41,600 --> 00:15:43,760 what's going on. Let's go ahead and listen to 322 00:15:43,760 --> 00:15:45,720 some of this. It bothers me. 323 00:15:46,080 --> 00:15:50,320 It bothers me on on many levels. I I think your last guess got it 324 00:15:50,320 --> 00:15:52,720 right. It's it's a lot closer to 325 00:15:52,720 --> 00:15:55,440 gambling than it is to trading, and it's certainly not 326 00:15:55,440 --> 00:15:59,480 investing. And you know, is a is a tweet 327 00:15:59,880 --> 00:16:04,480 really investment advice? The first thing he says out of 328 00:16:04,480 --> 00:16:07,080 out of the gate, the first thing he says in this interview, it 329 00:16:07,080 --> 00:16:09,680 bothers me. It it bothers. 330 00:16:09,680 --> 00:16:12,160 It bothers him. People are are doing these 331 00:16:12,160 --> 00:16:14,240 things trading. They're they're gambling. 332 00:16:14,520 --> 00:16:17,440 How dare that happen in his stock market? 333 00:16:18,000 --> 00:16:21,800 How, how dare people gamble and do dumb things in my stock 334 00:16:21,800 --> 00:16:25,280 market bothersome. Let's go ahead and listen in on 335 00:16:25,280 --> 00:16:29,200 why it bothers him so much. I think we've learned over the 336 00:16:29,200 --> 00:16:33,320 last five, 6-7 years that a tweet is really never investment 337 00:16:33,320 --> 00:16:35,000 advice it. Never even mentions that the 338 00:16:35,000 --> 00:16:36,720 companies involved. I mean, that's what's so 339 00:16:36,720 --> 00:16:40,960 phenomenal to see massive moves like this, when really it was 340 00:16:40,960 --> 00:16:44,240 just the implication that he may be setting up and taking notice. 341 00:16:44,240 --> 00:16:46,640 That's the tweet we're talking. About yeah and and we can, we 342 00:16:46,640 --> 00:16:48,840 can debate. That is exactly what Roaring 343 00:16:48,840 --> 00:16:52,680 Kitty tweeted. A picture a a pen drawing 344 00:16:52,680 --> 00:16:55,640 picture of a gamer leaning forward in a chair. 345 00:16:56,200 --> 00:17:00,400 And that's what bothers the SEC the the former SEC chair is 346 00:17:00,400 --> 00:17:03,280 roaring Kitty having this type of power that he can tweet one 347 00:17:03,280 --> 00:17:06,480 meme and it will cause a a random stock, at least not 348 00:17:06,480 --> 00:17:09,839 random, but one associated with him to go up 100%. 349 00:17:10,680 --> 00:17:14,960 They whether that's, you know, let's put it this way, whether 350 00:17:14,960 --> 00:17:17,960 it's legal or illegal or it's manipulation or not. 351 00:17:18,119 --> 00:17:21,960 But I have a question for Keith Gill, which is why not tell 352 00:17:21,960 --> 00:17:25,839 people why you did, why not come on the show and say, are you 353 00:17:25,839 --> 00:17:28,600 saying that that that GameStop is now a good investment 354 00:17:28,600 --> 00:17:32,760 opportunity? I think here we we just have 355 00:17:32,760 --> 00:17:36,800 another illustration of how incredibly detached and out of 356 00:17:36,800 --> 00:17:39,880 touch the SEC is with regular investors. 357 00:17:40,600 --> 00:17:44,960 He acts like Keith Gill committed some crime by tweeting 358 00:17:44,960 --> 00:17:48,480 out a picture of a meme that literally has nothing to do with 359 00:17:48,480 --> 00:17:50,520 the stock. Didn't mention it, didn't have 360 00:17:50,520 --> 00:17:53,160 any hidden meaning. There's no call to action of any 361 00:17:53,160 --> 00:17:54,880 kind. He just tweeted. 362 00:17:55,400 --> 00:17:59,280 And the former SEC chair is bothered by his tweet, by one 363 00:17:59,280 --> 00:18:03,080 person tweeting a meme and he's calling on him like like he has 364 00:18:03,080 --> 00:18:06,000 some type of power come to me, appear to me in front of my 365 00:18:06,000 --> 00:18:10,920 congressional committee here on CNBC as if CNBC is the authority 366 00:18:10,920 --> 00:18:14,320 leader in the stock market and anybody that has any type of 367 00:18:14,320 --> 00:18:18,080 influence has to come on a CNBC. You just see the level of 368 00:18:18,080 --> 00:18:21,520 detachment, how how out of touch these SEC members are. 369 00:18:22,080 --> 00:18:26,280 What did he actually do here? You notice that Jay Clayton here 370 00:18:26,480 --> 00:18:30,160 says we can have this debate over what's legal and illegal, 371 00:18:30,560 --> 00:18:32,120 but why don't we just have him on? 372 00:18:32,720 --> 00:18:34,520 No, why don't you just say it, Jay? 373 00:18:34,800 --> 00:18:37,800 Nothing he did was illegal. It wasn't illegal. 374 00:18:38,080 --> 00:18:39,680 That's why you don't want to have the debate, because the 375 00:18:39,680 --> 00:18:42,520 debate would be this quick. Was it illegal? 376 00:18:42,520 --> 00:18:44,840 No, it wasn't. What he did was completely 377 00:18:44,840 --> 00:18:47,040 legal, and that's why you don't want to talk about it. 378 00:18:47,200 --> 00:18:50,480 Did he do something illegal, Tweeting out a picture of 379 00:18:50,480 --> 00:18:52,000 someone leaning for it in a chair? 380 00:18:52,560 --> 00:18:55,640 That's not even a debate, Jay. There's nothing even remotely 381 00:18:55,640 --> 00:18:58,200 close to illegal there, he continues on with this 382 00:18:58,200 --> 00:19:00,920 interview. We don't know. 383 00:19:01,160 --> 00:19:05,520 What we know is that triggered what I would say is euphoric and 384 00:19:05,520 --> 00:19:08,760 speculative buying among the retail community, which is never 385 00:19:08,760 --> 00:19:11,480 a great thing. So this was a really interesting 386 00:19:11,480 --> 00:19:14,200 proposition put up by Matt Levine from Bloomberg yesterday. 387 00:19:14,200 --> 00:19:18,600 Just what about the idea if Keith Gill, Warren Kitty, who 388 00:19:18,600 --> 00:19:21,320 tweeted this, were to have gone on and bought options ahead of 389 00:19:21,320 --> 00:19:24,560 time, tweeted this and then made a lot of money based on 390 00:19:24,560 --> 00:19:27,520 everybody going into this and the price going up, is that 391 00:19:27,520 --> 00:19:29,560 illegal? Now the question being posed 392 00:19:29,560 --> 00:19:32,080 here. Is if Keith Gill, Roaring Kitty 393 00:19:32,080 --> 00:19:34,720 went on to his brokerage and bought call options before 394 00:19:34,720 --> 00:19:38,000 tweeting, knowing that the tweet would cause the stock to go up, 395 00:19:38,280 --> 00:19:42,480 would that be illegal? So we have Keith Gill buying a 396 00:19:42,480 --> 00:19:44,840 stock ahead of time before releasing it publicly. 397 00:19:44,960 --> 00:19:46,640 And this is hypothetical. We don't even know if he 398 00:19:46,640 --> 00:19:48,960 actually did this. But just assuming he did, 399 00:19:49,120 --> 00:19:52,760 assuming he did buy the stock hypothetically, and then it 400 00:19:52,760 --> 00:19:55,160 caused the stock to go up when he tweeted, would that be 401 00:19:55,160 --> 00:19:57,360 illegal? That is exactly what Warren 402 00:19:57,360 --> 00:19:59,000 Buffett has done his entire career. 403 00:19:59,440 --> 00:20:03,160 He secretly buys stocks without anyone knowing, and then once 404 00:20:03,160 --> 00:20:06,080 it's released that he bought into the stock, it causes the 405 00:20:06,080 --> 00:20:07,920 stock to go up by billions of dollars. 406 00:20:08,400 --> 00:20:11,760 They're posing questions to a retail investor that they don't 407 00:20:11,760 --> 00:20:13,800 post a billion dollar hedge funds and people like Warren 408 00:20:13,800 --> 00:20:15,480 Buffett. In fact, Warren Buffett got 409 00:20:15,480 --> 00:20:19,040 special approval to hide one of his purchases for eight months 410 00:20:19,040 --> 00:20:21,720 now because he's still accumulating shares and he 411 00:20:21,720 --> 00:20:24,080 doesn't want the knowledge of him buying it to cause a stock 412 00:20:24,080 --> 00:20:26,000 to go up. He wants to have his entire 413 00:20:26,000 --> 00:20:29,640 position already purchased. Before anyone else finds out 414 00:20:29,640 --> 00:20:32,320 about it, because he knows when other people find out about it, 415 00:20:32,320 --> 00:20:35,280 the stock will go up. So again, you have this type of 416 00:20:35,280 --> 00:20:38,520 dichotomy. You have this unfair biased look 417 00:20:38,520 --> 00:20:41,520 where the SEC looks with far greater scrutiny on retail 418 00:20:41,520 --> 00:20:43,160 investors. Then they do some of the biggest 419 00:20:43,160 --> 00:20:45,200 hedge funds in the. World, when it should be the 420 00:20:45,200 --> 00:20:47,240 complete opposite. They should look with far 421 00:20:47,240 --> 00:20:50,320 greater scrutiny on bigger hedge funds than they do with people 422 00:20:50,320 --> 00:20:52,600 like Keith Gill. And we have his answer here. 423 00:20:52,600 --> 00:20:55,720 It's not insider trading that's that's that's clear unless he 424 00:20:55,920 --> 00:20:57,680 and he's trading on his own information. 425 00:20:57,680 --> 00:20:59,520 That's why it's not an insider trading. 426 00:20:59,760 --> 00:21:02,480 But is this, is this something that we should be tolerating in 427 00:21:02,480 --> 00:21:05,200 our markets? He goes on to acknowledge right 428 00:21:05,200 --> 00:21:07,600 away that there's nothing illegal about it. 429 00:21:07,600 --> 00:21:11,160 So technically, if we're enforcing the law like we're 430 00:21:11,160 --> 00:21:14,720 supposed to do as the SEC, we're supposed to enforce the laws on 431 00:21:14,720 --> 00:21:16,440 the book. Well, there's nothing actually 432 00:21:16,440 --> 00:21:19,040 illegal about it. But should we tolerate it? 433 00:21:19,320 --> 00:21:21,840 Should we have this type of action in our market? 434 00:21:22,320 --> 00:21:26,160 This should be frowned upon. I find this type of Country Club 435 00:21:26,160 --> 00:21:29,560 attitude that the SEC has on these topics very amusing. 436 00:21:29,920 --> 00:21:33,320 They act like they have disdain for poor investors that are 437 00:21:33,320 --> 00:21:36,360 going into a meme stock. Should we tolerate this type of 438 00:21:36,360 --> 00:21:38,840 behavior? Well, forget all the rich people 439 00:21:38,960 --> 00:21:41,520 that move stocks around like crazy and advertise their 440 00:21:41,520 --> 00:21:44,800 positions like crazy, but this is what we should focus on. 441 00:21:44,960 --> 00:21:47,960 This whole thing is just silly. Why is a former SEC member 442 00:21:47,960 --> 00:21:51,160 coming on to CNBC and acting incredulous over a couple 443 00:21:51,160 --> 00:21:55,440 investors doing legal things, doing things that he, by his own 444 00:21:55,440 --> 00:21:57,880 acknowledgement, say are completely legal? 445 00:21:57,920 --> 00:22:00,200 He continues on with this, saying that this should be 446 00:22:00,200 --> 00:22:03,280 looked at with greater scrutiny. You know, whether it's legal or 447 00:22:03,280 --> 00:22:06,160 legal, I don't think so. And that's why I say, why 448 00:22:06,160 --> 00:22:07,960 doesn't it, you know? What does that mean not to 449 00:22:07,960 --> 00:22:10,720 tolerate? So the idea I would think is you 450 00:22:10,720 --> 00:22:13,800 look at this more in the context of market manipulation, right. 451 00:22:13,840 --> 00:22:17,400 And the question is, are you allowed to manipulate the 452 00:22:17,400 --> 00:22:19,520 market? People, by the way, publish 453 00:22:19,520 --> 00:22:22,720 things all the time and they say, hey, I like this stock and 454 00:22:22,720 --> 00:22:25,760 they, you know, hope that other folks follow them. 455 00:22:25,880 --> 00:22:28,120 Is that market manipulation? Generally not. 456 00:22:28,240 --> 00:22:29,800 Maybe, maybe, maybe not. So what? 457 00:22:30,640 --> 00:22:35,640 So you have Andrew Sorkin here explaining the pure hypocrisy of 458 00:22:35,640 --> 00:22:39,520 this SEC former SEC member saying that many people come on 459 00:22:39,520 --> 00:22:42,120 and they give their case for a stock and it causes in many 460 00:22:42,120 --> 00:22:43,640 cases the stock to go up in price. 461 00:22:43,920 --> 00:22:46,720 Is that market manipulation? And he says right away, no, it's 462 00:22:46,720 --> 00:22:48,400 not. It's not most of the time, but 463 00:22:48,400 --> 00:22:51,080 just with Keith Gill, just with these meme investors, that's 464 00:22:51,080 --> 00:22:54,840 when we should look at it. Is the distinction in your mind 465 00:22:54,920 --> 00:22:57,360 as somebody who ran this department and who's looking at 466 00:22:57,480 --> 00:22:59,520 and cares about the integrity of these markets? 467 00:22:59,600 --> 00:23:01,480 Well, that's why. That's why I'm saying, OK, we 468 00:23:01,480 --> 00:23:04,520 can we can discuss what are exactly the facts and 469 00:23:04,520 --> 00:23:07,920 circumstances around the publication of this tweet and 470 00:23:07,920 --> 00:23:10,880 the like. But in but in the meantime, if 471 00:23:10,880 --> 00:23:13,520 you care about the markets and you care about investing, come 472 00:23:13,520 --> 00:23:15,200 on this program. Tell people. 473 00:23:15,240 --> 00:23:17,880 Tell people why you did this. From your lips, God bless you. 474 00:23:17,880 --> 00:23:20,440 We hope he does. So this is a big problem, 475 00:23:20,480 --> 00:23:23,600 according to the SEC chair, a problem that should be looked at 476 00:23:23,600 --> 00:23:26,240 because we want to protect the integrity of our markets. 477 00:23:26,680 --> 00:23:29,680 Of course, with this problem, he doesn't actually illustrate that 478 00:23:29,680 --> 00:23:31,800 there's any victims. No one's being victimized by 479 00:23:31,800 --> 00:23:33,360 this. No one's being hurt by it. 480 00:23:33,720 --> 00:23:36,840 You can invest in it and either gamble your money or not, just 481 00:23:36,840 --> 00:23:39,800 like anyone else investing money into highly speculative assets 482 00:23:40,360 --> 00:23:43,720 so it doesn't affect anyone else and there's no victims. 483 00:23:43,920 --> 00:23:47,240 But for some reason this is a big problem, and it's only a 484 00:23:47,240 --> 00:23:50,160 problem when small retail investors do this. 485 00:23:50,360 --> 00:23:51,880 That's an important part of this equation. 486 00:23:52,160 --> 00:23:55,200 If we look at other examples of wealthy people that have gone on 487 00:23:55,200 --> 00:23:59,840 to CNBC like he says, you see a much greater problem that the 488 00:23:59,920 --> 00:24:03,080 SEC refuses to look at. Let me take you back to October 489 00:24:03,080 --> 00:24:06,200 of 2020. We're here on CNBC and we have 490 00:24:06,200 --> 00:24:09,240 Andrew Ross Sorkin and Chamath Polyhopatia. 491 00:24:09,640 --> 00:24:12,800 He's going to talk about one of his specs called Clover. 492 00:24:12,960 --> 00:24:15,440 Let's go ahead and hear what he has to say about Clover. 493 00:24:15,760 --> 00:24:18,920 Call a spade a spade right now. This is a money losing company. 494 00:24:18,920 --> 00:24:20,480 It does not make money today, correct? 495 00:24:20,480 --> 00:24:25,200 It's still losing money. On a per unit basis, on a 496 00:24:25,200 --> 00:24:28,520 operating margin basis, it is almost at break even in 497 00:24:28,520 --> 00:24:31,440 profitability. By 2023, we will have overall 498 00:24:31,440 --> 00:24:34,120 profitability. You have Chamath Polyhopatia 499 00:24:34,200 --> 00:24:37,800 pitching one of his specs that he's being paid for to promote. 500 00:24:38,240 --> 00:24:40,720 So we have certain agreements with different parties, but he's 501 00:24:40,720 --> 00:24:43,200 basically a sales person for these SPAC's. 502 00:24:43,560 --> 00:24:45,880 Now, SPAC has a way of taking a company public where you don't 503 00:24:45,880 --> 00:24:47,040 have to go through the normal route. 504 00:24:47,200 --> 00:24:50,080 You can avoid all those, you know, annoying things like 505 00:24:50,080 --> 00:24:52,680 making sure the company actually has its accounting together. 506 00:24:52,960 --> 00:24:56,040 But either way, he's promoting this company called Clover, 507 00:24:56,040 --> 00:24:59,280 which is a health company and he says right off the bat that it's 508 00:24:59,280 --> 00:25:01,800 close to profitability. It's really close. 509 00:25:01,800 --> 00:25:04,160 It's right on the brink of profitability and it will be 510 00:25:04,200 --> 00:25:08,760 overall profitable by 2023. Well, it's 2024, so let's go 511 00:25:08,760 --> 00:25:11,640 ahead and take a look at that forward-looking statement from 512 00:25:11,640 --> 00:25:13,760 Chamont. We have the EBITDA of the 513 00:25:13,760 --> 00:25:17,960 company In 2023 it lost $180 million. 514 00:25:18,160 --> 00:25:22,160 If we look at the free cash flow, it lost $116 million in 515 00:25:22,160 --> 00:25:25,760 free cash flow while paying the executives employees a nice 516 00:25:25,760 --> 00:25:29,240 stock based compensation bonus of $140 million. 517 00:25:29,600 --> 00:25:31,840 So it actually paid the employees more money than they 518 00:25:31,840 --> 00:25:35,200 actually lost in cash. If we look at the net income of 519 00:25:35,200 --> 00:25:37,640 the company, it lost 213 million. 520 00:25:37,920 --> 00:25:41,680 If we look at the earnings per share, it lost $0.44 per share. 521 00:25:41,760 --> 00:25:45,480 On an overall profitability basis, Clover lost money every 522 00:25:45,480 --> 00:25:47,400 way you can. No matter what accounting way 523 00:25:47,400 --> 00:25:49,560 you look at the company, it lost money. 524 00:25:49,880 --> 00:25:53,160 Now of course, predictions are hard, and I don't think Chamath 525 00:25:53,320 --> 00:25:54,760 believes he can predict the future. 526 00:25:54,760 --> 00:25:57,240 So there's always a chance things go worse than expected. 527 00:25:57,720 --> 00:26:00,480 But you have a 6 minute interview here where Chamath 528 00:26:00,480 --> 00:26:04,000 answers every question in the most glowing terms possible, 529 00:26:04,200 --> 00:26:07,240 promoting a stock that he's being paid to promote on live 530 00:26:07,240 --> 00:26:09,800 television. He goes through in great detail, 531 00:26:09,800 --> 00:26:13,040 talking up this company like it's the future, you have to 532 00:26:13,040 --> 00:26:15,520 invest in it. He's directly selling this 533 00:26:15,520 --> 00:26:19,520 company to the public in order to get the stock price to go up. 534 00:26:19,720 --> 00:26:22,240 That appearance was in October of 2020. 535 00:26:22,520 --> 00:26:27,440 The stock price from that point has dropped over 95%. 536 00:26:27,800 --> 00:26:29,800 You can see the great decline over time. 537 00:26:30,040 --> 00:26:32,560 Investors in this company lost almost all of their money. 538 00:26:32,760 --> 00:26:35,000 Now maybe my memory is a little bit unclear. 539 00:26:35,000 --> 00:26:37,480 Maybe I just forget. But I don't remember the time 540 00:26:37,480 --> 00:26:41,040 where the SEC chair went on to CNBC soon after the interview 541 00:26:41,040 --> 00:26:44,520 with Chamath and expressed his disdain for someone going on and 542 00:26:44,520 --> 00:26:47,400 trying to sell a SPAC. Someone trying to go on and sell 543 00:26:47,400 --> 00:26:49,720 something that's highly speculative with very poor 544 00:26:49,720 --> 00:26:51,920 fundamentals. Do you remember that interview? 545 00:26:51,920 --> 00:26:54,280 I don't. And this wasn't the only time 546 00:26:54,280 --> 00:26:57,440 this occurred. In September of 2020, Chamath 547 00:26:57,440 --> 00:27:02,000 once again went on to CNBC and this time he got an entire 15 548 00:27:02,000 --> 00:27:06,160 minute segment with slideshows. He had slides accompanying his 549 00:27:06,160 --> 00:27:09,920 appearance to sell another SPAC. If we look at this, this one was 550 00:27:09,920 --> 00:27:11,920 called Open Door. Let's go ahead and listen to 551 00:27:11,920 --> 00:27:14,520 some of it. Being what we love to call a 552 00:27:14,520 --> 00:27:16,320 virtuous cycle. So how does this work? 553 00:27:16,600 --> 00:27:20,800 You as a consumer, you can now go to opendoor.com and within 24 554 00:27:20,800 --> 00:27:23,600 hours they will give you an all cash offer for your home. 555 00:27:24,160 --> 00:27:27,160 And if you choose to sell within three days, you can sell your 556 00:27:27,160 --> 00:27:29,120 home. It's a really incredible 557 00:27:29,120 --> 00:27:30,560 experience. And so you can start to 558 00:27:30,560 --> 00:27:35,280 understand how they can build a really powerful competitive Moat 559 00:27:35,560 --> 00:27:39,160 because the more offers that they're able to make, the more 560 00:27:39,160 --> 00:27:42,080 homes that they will buy and sell, which means the more 561 00:27:42,080 --> 00:27:45,480 markets still dominate, which means the more value added 562 00:27:45,480 --> 00:27:47,480 services that they can automate online. 563 00:27:47,480 --> 00:27:51,360 For example, mortgages, title escrow, all these things where 564 00:27:51,360 --> 00:27:54,000 you used to have hundreds of pages of documents they can 565 00:27:54,000 --> 00:27:57,480 streamline through a mobile app. It also allows them to work with 566 00:27:57,480 --> 00:28:01,280 banking partners to secure large pools of capital at cheaper and 567 00:28:01,280 --> 00:28:03,840 cheaper rates. They can pass all these savings 568 00:28:03,840 --> 00:28:07,000 on to you and all of that drives more demand to the business. 569 00:28:07,720 --> 00:28:10,440 Now that's what got us really excited about the company. 570 00:28:10,640 --> 00:28:13,040 But then we took a step back and sort of Buffett and Monger 571 00:28:13,040 --> 00:28:14,840 language asked what's our margin of? 572 00:28:15,240 --> 00:28:18,680 Buffett and Monger language this continues on. 573 00:28:18,800 --> 00:28:22,360 It's just, it goes on and on for 15 minutes. 574 00:28:22,680 --> 00:28:24,680 You have Chamoth and one box hair. 575 00:28:24,880 --> 00:28:27,000 You have the virtuous cycle right here. 576 00:28:27,280 --> 00:28:30,920 And you have Chamoth, glowingly, with his excellent communication 577 00:28:30,920 --> 00:28:35,280 skills, selling this stock to investors, and CNBC knows it. 578 00:28:35,280 --> 00:28:38,160 They're airing this whole thing. They get very little pushback to 579 00:28:38,160 --> 00:28:40,560 him the entire time. And they know that he's being 580 00:28:40,560 --> 00:28:44,000 paid to promote these specs, these companies that have very 581 00:28:44,000 --> 00:28:47,320 unproven fundamentals. They have no robust history of 582 00:28:47,320 --> 00:28:49,360 finances. Everything is built on these 583 00:28:49,360 --> 00:28:51,600 narratives that people like Chamath are saying. 584 00:28:52,000 --> 00:28:56,280 Now again, this was September of 2020, and we can take a look at 585 00:28:56,280 --> 00:28:58,400 the outcome. If we look back five years, we 586 00:28:58,400 --> 00:29:02,840 have September of 2020 right there at 10/20/20 is around 587 00:29:02,840 --> 00:29:07,040 $24.00, right? So around $2425 and we can look 588 00:29:07,040 --> 00:29:10,240 at the stock price right now, $2.42. 589 00:29:10,560 --> 00:29:14,520 So investors once again got completely crushed and another 590 00:29:14,560 --> 00:29:19,200 garbage company that Chamath promoted directly on CNBC for a 591 00:29:19,200 --> 00:29:21,560 15 minute segment. Now you may have to jog my 592 00:29:21,560 --> 00:29:23,600 memory because I must be getting very forgetful. 593 00:29:23,760 --> 00:29:26,720 I don't remember the time. The SEC chair went on to CNBC 594 00:29:26,720 --> 00:29:30,240 after these appearances by Chamath and offered his disdain, 595 00:29:30,640 --> 00:29:34,960 calling Chamath out by name like he is now with Keith Gill. 596 00:29:35,240 --> 00:29:39,560 Keith Gill, Roaring Kitty committed the crime of tweeting, 597 00:29:39,760 --> 00:29:43,760 tweeting out a picture of a meme completely unrelated to a stock, 598 00:29:44,000 --> 00:29:47,280 and according to the SEC, that is enough for him to appear on 599 00:29:47,280 --> 00:29:49,920 CNBC. Call him out by name, say that 600 00:29:49,920 --> 00:29:52,560 it's not appropriate and that it needs to be investigated. 601 00:29:52,560 --> 00:29:55,920 But when people like Chamath go directly onto CNBC to promote a 602 00:29:55,920 --> 00:29:59,440 stock they're paid to promote and dump it on retail investors 603 00:29:59,680 --> 00:30:02,320 where it subsequently loses 95% of value. 604 00:30:02,800 --> 00:30:05,200 What do you get from the SEC? Crickets. 605 00:30:05,600 --> 00:30:07,920 You don't get anything. And therein lies the problem. 606 00:30:07,920 --> 00:30:10,280 Now let's go ahead and move on to some headlines. 607 00:30:10,440 --> 00:30:12,400 There's one big headline here, and I don't want to spend too 608 00:30:12,400 --> 00:30:14,840 much time on this one. It's basically a story from the 609 00:30:14,840 --> 00:30:19,800 Wall Street Journal that Walmart is on track to be overtaken by 610 00:30:19,800 --> 00:30:23,040 Amazon. And this is like a similar story 611 00:30:23,040 --> 00:30:26,160 that we hear for all different types of industries. 612 00:30:26,680 --> 00:30:29,720 I remember hearing this about FedEx and USPS. 613 00:30:30,120 --> 00:30:32,400 Amazon overtook them in logistics. 614 00:30:32,760 --> 00:30:35,280 Now Walmart, the biggest retailers on track to be 615 00:30:35,280 --> 00:30:37,800 overtaken by Amazon in retail sales. 616 00:30:38,240 --> 00:30:41,160 Now I don't think this is actually that meaningful. 617 00:30:41,160 --> 00:30:44,320 It's true that Amazon will eventually overtake Walmart. 618 00:30:44,440 --> 00:30:46,160 It's just the dynamics of the industry. 619 00:30:46,280 --> 00:30:50,200 Amazon has the dominant share of online marketplace and they're 620 00:30:50,200 --> 00:30:51,880 growing much faster than Walmart. 621 00:30:52,400 --> 00:30:54,760 But I don't think this actually serves Amazon that well. 622 00:30:55,040 --> 00:30:58,240 The only thing I think this news will accomplish will make it 623 00:30:58,240 --> 00:31:00,920 easier to have those catchphrases by regulators. 624 00:31:01,240 --> 00:31:03,680 Amazon is the biggest retail company in the world. 625 00:31:03,960 --> 00:31:06,680 That's what they'll say. No longer is it Walmart being 626 00:31:06,680 --> 00:31:10,240 technically bigger than Amazon, but Amazon will be #1, which 627 00:31:10,240 --> 00:31:13,160 they'll now be able to say. Amazon is the biggest retail 628 00:31:13,160 --> 00:31:16,200 company in the world, which will almost always be exclusively 629 00:31:16,200 --> 00:31:18,920 used against Amazon. Now there's other news for 630 00:31:18,920 --> 00:31:20,480 Amazon. It's a little bit more positive. 631 00:31:20,920 --> 00:31:24,560 They are growing in digital media and they're also growing 632 00:31:24,560 --> 00:31:26,760 in traditional media. We have a headline here that 633 00:31:26,760 --> 00:31:29,920 Amazon's appearance at Upfronts highlights its push beyond 634 00:31:29,920 --> 00:31:32,640 digital ads into the traditional media. 635 00:31:32,880 --> 00:31:35,440 They also mentioned that the company said its ad supported 636 00:31:35,440 --> 00:31:40,520 streaming content now reaches 175 million US viewers every 637 00:31:40,520 --> 00:31:43,600 month. So 175,000,000 is a lot. 638 00:31:43,840 --> 00:31:46,360 The only company that really comes close to this is Netflix. 639 00:31:46,640 --> 00:31:50,000 They say up from more than 120 million in 2021. 640 00:31:50,400 --> 00:31:52,560 So this is growing quick and I think it's going to continue to 641 00:31:52,560 --> 00:31:56,240 grow quick because Amazon is pushing out a lot of big content 642 00:31:56,240 --> 00:31:58,840 on Prime. It also disclosed that Prime 643 00:31:58,840 --> 00:32:03,200 Video counts 200 million global customers, 115 million of whom 644 00:32:03,200 --> 00:32:06,600 are in the US So we know that Prime is growing closer to 300 645 00:32:06,600 --> 00:32:09,440 million and Prime Video is now above 200 million. 646 00:32:09,520 --> 00:32:12,280 I've said it many times before, I think Amazon is one of the 647 00:32:12,280 --> 00:32:14,160 biggest advertising winners in the world. 648 00:32:14,440 --> 00:32:17,200 They'll continue to consolidate ads and I think they're just 649 00:32:17,200 --> 00:32:20,840 going to steal from cable TV. Cable TV advertising dollar 650 00:32:20,840 --> 00:32:23,760 continues to go down as Amazon and companies like Netflix 651 00:32:24,000 --> 00:32:27,880 continue to gain. Now we also had some surprising 652 00:32:27,880 --> 00:32:31,280 news, but not that surprising if you've been following along news 653 00:32:31,280 --> 00:32:34,120 from Netflix. There is news now that they are 654 00:32:34,120 --> 00:32:37,560 going to live stream NFL on Christmas Day. 655 00:32:37,960 --> 00:32:40,240 They say specifically that Netflix will be the home of the 656 00:32:40,240 --> 00:32:45,320 live NFL games this Christmas Day and in 2025 and in 2026. 657 00:32:45,440 --> 00:32:48,080 Netflix is one of the companies that does more strategy shifts 658 00:32:48,080 --> 00:32:50,960 than any company that I ever have been invested in. 659 00:32:51,320 --> 00:32:54,960 They change their direction and they evolve and they change what 660 00:32:54,960 --> 00:32:58,200 they're doing seemingly overnight, and that's part of 661 00:32:58,200 --> 00:33:00,600 their culture. If you're invested in Netflix, 662 00:33:00,600 --> 00:33:03,400 you need to know that this is part of your investment, a 663 00:33:03,400 --> 00:33:05,840 company that will change what they're doing on a dime. 664 00:33:06,240 --> 00:33:09,120 This is both a good thing and a bad thing, but I think 665 00:33:09,200 --> 00:33:12,280 overwhelmingly a good thing. We can look at certain examples 666 00:33:12,280 --> 00:33:14,640 here. Netflix said that they were 667 00:33:14,640 --> 00:33:17,360 first ADVD company and they transitioned to a streaming 668 00:33:17,360 --> 00:33:19,160 company. They said that they're a company 669 00:33:19,160 --> 00:33:22,120 that's going to license content and then they transition to a 670 00:33:22,120 --> 00:33:24,480 production company where they produce their own content. 671 00:33:24,640 --> 00:33:26,320 They said that they were a company that would never have 672 00:33:26,320 --> 00:33:28,680 advertising and now they have advertising tears. 673 00:33:29,000 --> 00:33:31,120 They said that they're a company that allowed for password 674 00:33:31,120 --> 00:33:33,440 sharing and now they're doing a password crackdown. 675 00:33:33,760 --> 00:33:36,400 They said that they're a company that wouldn't have live events. 676 00:33:36,680 --> 00:33:39,760 Everything would be on demand. Now they have live events and 677 00:33:39,760 --> 00:33:41,840 their company that said that they would never have sports 678 00:33:41,840 --> 00:33:45,200 because it was too expensive. Now they have live sports, their 679 00:33:45,200 --> 00:33:47,520 company that's constantly evolving and shifting. 680 00:33:47,880 --> 00:33:50,840 Now you can take this the way of them not doing what they say and 681 00:33:50,840 --> 00:33:53,480 sticking with the every previous statement they've ever made. 682 00:33:53,960 --> 00:33:56,280 That's not really how I view healthy companies. 683 00:33:56,480 --> 00:34:00,280 Healthy companies evolve and mold and what's best for the 684 00:34:00,280 --> 00:34:02,800 company. In the current situation with 685 00:34:02,800 --> 00:34:07,160 Netflix, their company notable for not having a lot of red 686 00:34:07,160 --> 00:34:10,600 tape, when they make decisions, they can make decisions very 687 00:34:10,600 --> 00:34:12,880 quickly. They can pivot into things very 688 00:34:12,880 --> 00:34:15,320 quickly. You don't have layers and layers 689 00:34:15,320 --> 00:34:16,880 of upper management to go through. 690 00:34:17,320 --> 00:34:21,000 Netflix employees are given a lot of autonomy over their job. 691 00:34:21,560 --> 00:34:24,600 So when I look at this news, it is surprising because Netflix 692 00:34:24,600 --> 00:34:26,560 has stayed out of live sports for a long time. 693 00:34:26,840 --> 00:34:30,600 They've reiterated that it's not lucrative, it's not economical, 694 00:34:30,920 --> 00:34:33,320 and I still believe that that's a true statement. 695 00:34:33,560 --> 00:34:37,480 The only reason that I believe Netflix made this decision to 696 00:34:37,480 --> 00:34:41,400 broadcast these two NFL games is because it made financial sense, 697 00:34:41,760 --> 00:34:44,639 because they believe they'll get a return on their investment. 698 00:34:45,080 --> 00:34:47,679 There's no other way possible that I think they'd make this 699 00:34:47,679 --> 00:34:52,040 decision, so they must have carved some attractive deal with 700 00:34:52,040 --> 00:34:55,480 the NFL where the viewership and the additional subscribers and 701 00:34:55,480 --> 00:34:57,560 the engagement will be worth the cost. 702 00:34:58,080 --> 00:35:00,800 Now finally, we move on to the story of Chipotle being 703 00:35:00,800 --> 00:35:03,600 boycotted by social media. We know that there's a lot of 704 00:35:03,600 --> 00:35:06,720 danger with social media, especially these name brand food 705 00:35:06,720 --> 00:35:08,560 companies. We've seen it happen before 706 00:35:08,560 --> 00:35:11,200 where companies like Starbucks are being boycotted by a lot of 707 00:35:11,200 --> 00:35:13,720 people because of their so-called participation in 708 00:35:13,720 --> 00:35:16,080 supporting Israel over Palestine. 709 00:35:16,480 --> 00:35:18,320 Now if you look at the data, that's not true. 710 00:35:18,320 --> 00:35:20,760 Starbucks corporate has not supported either side 711 00:35:20,880 --> 00:35:23,280 individually, but either way there's always going to be 712 00:35:23,280 --> 00:35:26,160 boycotts and the risk of people gathering together on social 713 00:35:26,160 --> 00:35:29,080 media to try to prove a point. And in this case, we see it with 714 00:35:29,080 --> 00:35:31,200 Chipotle. People are upset that they're 715 00:35:31,200 --> 00:35:34,640 not getting the portion sizes they deserve at Chipotle. 716 00:35:34,960 --> 00:35:38,200 And here's an example. This is a viral TikTok of a 717 00:35:38,200 --> 00:35:41,840 Chipotle employee under serving them, not giving them big enough 718 00:35:41,840 --> 00:35:46,640 portions. Chicken. 719 00:35:55,680 --> 00:35:57,880 Oh. Man, I'm. 720 00:35:57,880 --> 00:35:58,680 I'm OK. I'm OK. 721 00:35:58,960 --> 00:36:00,760 He gives them. He just walks out. 722 00:36:00,840 --> 00:36:03,000 The problem here, of course, being that she's not giving him 723 00:36:03,000 --> 00:36:05,200 a whole lot of food. These serving sizes, these 724 00:36:05,200 --> 00:36:06,960 scoops he's getting are a little too small. 725 00:36:07,360 --> 00:36:10,520 And this type of trend of showing Chipotle not giving 726 00:36:10,520 --> 00:36:12,680 enough food is blowing up on TikTok. 727 00:36:12,840 --> 00:36:16,840 We now have TikTok Vigilantes going after Chipotle in the most 728 00:36:16,840 --> 00:36:20,120 devastating ways they can, first of which is taking down the 729 00:36:20,120 --> 00:36:23,240 review star rating on their app breaking news. 730 00:36:23,240 --> 00:36:26,280 As of last night, we have officially gotten Chipotle down 731 00:36:26,280 --> 00:36:29,360 to a 4.6 star rating on the App Store. 732 00:36:29,360 --> 00:36:32,360 Welcome to day four of trying to get Chipotle to change their 733 00:36:32,360 --> 00:36:34,480 outrageously small portion sizes. 734 00:36:34,760 --> 00:36:37,680 We're sick of it. First and foremost, keep the one 735 00:36:37,680 --> 00:36:39,760 star reviews coming. We're starting to call it. 736 00:36:39,760 --> 00:36:43,200 If you are willing to go to your nearest Chipotle, order your 737 00:36:43,200 --> 00:36:47,360 normal stuff, and if the portion sizes aren't top tier, walk out. 738 00:36:47,360 --> 00:36:49,840 So there you have him, instructing masses of people to 739 00:36:49,840 --> 00:36:53,200 give Chipotle's app A1 star review and for them to visit 740 00:36:53,200 --> 00:36:56,480 Chipotle's, Go through a meal, crate the whole thing, and then 741 00:36:56,480 --> 00:36:58,920 walk out halfway so that Chipotle has to waste that food 742 00:36:58,920 --> 00:37:00,920 and throw it away. And there's more of these. 743 00:37:00,920 --> 00:37:03,680 There's just more and more of them never ending videos about 744 00:37:03,680 --> 00:37:05,840 Chipotle and them not giving you enough food. 745 00:37:05,960 --> 00:37:08,040 Hi, can I get a chicken burrito please? 746 00:37:08,040 --> 00:37:10,400 OK. And white rice or brown rice? 747 00:37:10,720 --> 00:37:16,840 White rice, white rice. OK, you want black beans, Pinto 748 00:37:16,880 --> 00:37:18,680 beans. There you have it. 749 00:37:18,680 --> 00:37:20,360 It gives them a tiny portion of rice. 750 00:37:20,360 --> 00:37:22,720 You get the point. I've been sent these clips by 751 00:37:22,720 --> 00:37:26,080 various people, members of the community, and viewers here with 752 00:37:26,080 --> 00:37:30,720 great concern that this is this is emblematic of the downfall of 753 00:37:30,720 --> 00:37:33,760 Chipotle. After all, what other evidence 754 00:37:33,760 --> 00:37:37,240 do we need that the company's in serious trouble than people on 755 00:37:37,240 --> 00:37:40,480 TikTok complaining? That's basically that's like the 756 00:37:40,520 --> 00:37:42,800 the silver bullet. That's the one thing that really 757 00:37:42,800 --> 00:37:46,400 crushes a company is when people online complain about the 758 00:37:46,400 --> 00:37:49,000 company. Let me give you another example 759 00:37:49,240 --> 00:37:53,600 of a company that people complain about in mass millions 760 00:37:53,600 --> 00:37:55,760 of people. Just a couple years ago, here's 761 00:37:55,760 --> 00:37:59,200 a highly critical video, another critical video of a large 762 00:37:59,200 --> 00:38:01,840 established company. But this time it's not Chipotle, 763 00:38:02,080 --> 00:38:04,840 it's Netflix, and this was released one year ago. 764 00:38:05,400 --> 00:38:08,240 What does this mean for Netflix? Well, it means that they're 765 00:38:08,240 --> 00:38:11,960 going to see a drastic decline in subscribers, I imagine, 766 00:38:11,960 --> 00:38:14,840 because they fail to realize that this isn't some kind of 767 00:38:14,840 --> 00:38:17,920 must have item. It's not some inelastic good 768 00:38:17,920 --> 00:38:21,360 that everyone needs to own. It's a luxury, and it's an 769 00:38:21,360 --> 00:38:25,920 expensive one and it's a catalogue of mostly dog, more 770 00:38:25,920 --> 00:38:29,880 like net, am I right? So if they can't share an 771 00:38:29,880 --> 00:38:32,120 account with someone that's already paying, it's not like 772 00:38:32,120 --> 00:38:34,480 that person's going to go out and subscribe to Netflix. 773 00:38:34,600 --> 00:38:36,240 The catalogue's not strong enough for that. 774 00:38:36,240 --> 00:38:38,040 They'll just go to a different service or they'll start 775 00:38:38,040 --> 00:38:40,280 pirating. So I imagine once this fully 776 00:38:40,280 --> 00:38:44,400 goes into effect, Netflix stock price will be flushed straight 777 00:38:44,400 --> 00:38:47,200 down this year and just sync to the depths of hell. 778 00:38:47,520 --> 00:38:51,840 It's going to collapse. That video got 3 million views 779 00:38:51,840 --> 00:38:53,280 and it was released one year ago. 780 00:38:53,280 --> 00:38:55,840 And if you look through the comments, every single comment 781 00:38:56,120 --> 00:38:58,560 agreed with them. Netflix was going to tank. 782 00:38:58,960 --> 00:39:00,960 All the investors are going to lose all of their money. 783 00:39:01,200 --> 00:39:03,760 Everyone was going to cancel Netflix because they're doing 784 00:39:03,760 --> 00:39:06,560 something so dumb. In 2022, there's another video 785 00:39:06,560 --> 00:39:09,320 released called The Rise and Fall of Netflix. 786 00:39:09,560 --> 00:39:11,680 This is a documentary made by Cold Fusion. 787 00:39:12,120 --> 00:39:15,440 For over a decade, the Netflix brand has been synonymous with 788 00:39:15,440 --> 00:39:18,760 innovation and disruption. This competition, along with 789 00:39:18,760 --> 00:39:21,840 creative choices and growth struggles, has LED Netflix into 790 00:39:21,840 --> 00:39:24,600 dangerous territory. Netflix's stock price has 791 00:39:24,600 --> 00:39:27,760 plummeted by 70% as of the timing of the production of this 792 00:39:27,760 --> 00:39:30,440 episode. Staff are being let go and 793 00:39:30,440 --> 00:39:32,960 hundreds of thousands of households are unsubscribing, 794 00:39:33,080 --> 00:39:35,600 with even more expected to leave in the coming year. 795 00:39:36,040 --> 00:39:38,960 That documentary, as you may suspect, goes over the rise and 796 00:39:38,960 --> 00:39:42,480 fall of Netflix, how it rose to the top, and now it's basically 797 00:39:42,480 --> 00:39:44,720 game over. And that again was released in 798 00:39:44,720 --> 00:39:48,880 2022 when Netflix was at the absolute bottom stock price. 799 00:39:49,360 --> 00:39:52,000 If we look today, fast forwarding only one year, we can 800 00:39:52,000 --> 00:39:54,560 see the amount of subscribers that Netflix gained over the 801 00:39:54,560 --> 00:39:56,560 trailing year. We can zoom in here. 802 00:39:56,840 --> 00:40:00,120 Netflix gained last quarter 9.3 million subscribers. 803 00:40:00,440 --> 00:40:04,440 The quarter before that, 13.18 point 76 and 5.8. 804 00:40:04,680 --> 00:40:07,760 The exact year that people were complaining online about Netflix 805 00:40:07,960 --> 00:40:10,840 was the year that they gained accumulatively the most 806 00:40:10,840 --> 00:40:12,920 subscribers throughout their entire history. 807 00:40:13,160 --> 00:40:17,040 Aside from COVID, this was one of their best years ever. 808 00:40:17,360 --> 00:40:19,760 And in many cases, that's the best time to buy a stock when 809 00:40:19,760 --> 00:40:22,000 sentiment is at the lowest. That's when I bought the 810 00:40:22,000 --> 00:40:26,640 majority of my Netflix position in 2022 and early 2023. 811 00:40:26,920 --> 00:40:29,560 That's when most people are saying that the company is over. 812 00:40:29,840 --> 00:40:33,400 Now if we look at Chipotle, we see a lot of people here 813 00:40:33,400 --> 00:40:36,480 complaining about the food and the portion sizes, but there's 814 00:40:36,480 --> 00:40:39,360 nothing in the business that's actually causing concern. 815 00:40:39,360 --> 00:40:41,760 We can look at the amount of locations they go up every 816 00:40:41,760 --> 00:40:44,160 single quarter. We can look at the average unit 817 00:40:44,160 --> 00:40:46,520 volume. This is how much each location 818 00:40:46,520 --> 00:40:50,240 is selling every single quarter. It has gone up consecutively 819 00:40:50,240 --> 00:40:53,640 every single quarter since 2020. There's always going to be some 820 00:40:53,640 --> 00:40:56,240 cases where people complain online where they're unhappy 821 00:40:56,240 --> 00:40:59,080 about a service, especially one like Chipotle, where it's not 822 00:40:59,080 --> 00:41:01,560 perfectly consistent customer by customer. 823 00:41:01,800 --> 00:41:03,960 There are some employees that do a bad job. 824 00:41:04,120 --> 00:41:06,360 They don't give enough food. So there's going to be some 825 00:41:06,360 --> 00:41:08,920 unhappy customers that go to those locations. 826 00:41:09,280 --> 00:41:12,880 But overall, when we look at the broad breadth of data here, when 827 00:41:12,880 --> 00:41:16,080 we look at the actual numbers, I don't see anything concerning 828 00:41:16,080 --> 00:41:18,520 with Chipotle or their value proposition. 829 00:41:18,760 --> 00:41:20,960 So despite what TikTok would have you believe, the 830 00:41:21,000 --> 00:41:24,240 overwhelming majority of customers at Chipotle are happy. 831 00:41:24,480 --> 00:41:26,160 Now that's going to be all for this episode. 832 00:41:26,160 --> 00:41:28,840 If you want more content, exclusive episodes and access to 833 00:41:28,840 --> 00:41:31,080 qualtrum.com, you can check out the Patreon. 834 00:41:31,120 --> 00:41:33,240 It comes with a free trial. That's all for now. 835 00:41:33,360 --> 00:41:34,200 See you in the next one.