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Welcome back, everyone. 
Today on the Joseph Carlson 

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Show, we're going to be talking 
about Palantir. 

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Palantir has had an incredible 
year. 

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The stock is up 121 percent this
year, so it's been a good one 

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for Palantir investors. 
This has been one of the best 

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stories. 
It's been riding the AI wave, 

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but unfortunately, this 
monumental rise in stock price 

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has led the stock to be 
extremely expensive. 

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With this being one of the most 
known popular stocks among 

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social media and retail 
investors, I think it's good to 

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take a look once in a while at 
the valuation. 

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So we're going to be taking a 
look at Palantir, going through 

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the valuation and explaining why
I believe this stock is 

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extremely expensive. 
Now we also have news from 

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Bloomberg that Netflix saw a 
spike in cancellations after the

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former CEO Reed Hastings donated
millions of dollars to the 

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Kamala campaign. 
It upset conservatives. 

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There are protests. 
We know that a lot of people are

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posting screenshots of them 
canceling the service. 

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Now we have some analytics and 
data to show that this did in 

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fact, Causeway a spike in 
cancellations. 

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We're going to be going over 
what this means for Netflix. 

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As a Netflix investor, how do I 
view this company leaning so 

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liberal, being such a a Democrat
liberal company and why it's 

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continually targeted by leading 
conservatives like Elon Musk? 

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We have news at Tim Sweeney, the
owner of Epic Games, which is 

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the creator of the game 
Fortnite, is once again unhappy 

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with Google. 
He's suing Google once again. 

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And this time Samsung as well 
for good measure, will be 

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looking into those lawsuits. 
And then finally, we also have a

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report that Google apparently 
paid $2.7 billion to bring back 

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a single employee, an AI genius.
That's quite the price tag to 

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pay for one employee. 
We'll be looking at why Google 

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decided to pay $2.7 billion for 
this employee. 

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Now, we start off today with the
main story, which is Palantir is

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now an extremely expensive 
stock. 

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Whether it's overvalued is a 
different question, but it is 

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very, very expensive. 
Now, I know anytime you say 

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something like this for a very 
popular stock, one that there's 

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a lot of social media, one that 
a lot of people have their money

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in, there's a an immediate 
backlash. 

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People immediately jump to the 
keyboard. 

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They go down to the comments 
section in a fury with full of 

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full of anger and hatred towards
anyone that criticizes their 

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company. 
So before you do that, before 

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you race to the comments section
to leave a comment that Joseph 

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doesn't know what he's talking 
about. 

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Joseph is just coping because he
miss Palantir. 

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Joseph just doesn't don't like 
Alex Karp's hair. 

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None of that is true. 
So just slow down a bit. 

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None of that is true. 
I do like Alex Karp's hair. 

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I think it's it's cool. 
He has great style. 

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He's very eccentric leader. 
I do think that Palantir is a 

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great company. 
So it's not true that I have 

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something against Palantir. 
In fact, I've been very positive

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about Palantir for a long period
of time. 

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So before you jump to judgement 
and start leaving angry 

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comments, just slow down a bit. 
Wait until you at least watch 

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this first segment, then leave 
the angry comments afterwards. 

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Now, like, like I said, Palantir
is one of the most popular 

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stocks among social media and 
retail investors. 

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And this isn't something that 
I'm just saying because I, I 

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kind of see it. 
It's also something that I'm 

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saying because the data supports
it. 

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Over 50% of Palantir shares are 
owned by retail investors. 

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A minority is owned by 
institutional investors, meaning

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that it's a lot of individuals 
buying this company, a lot of 

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individuals, a lot of small 
funds. 

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It's not major institutions 
buying up Palantir, which I 

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think is fine. 
That's a great thing to have 

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individuals buying shares in a 
great company. 

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So I don't see any problem with 
that, but it just shows that 

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this is a really, really popular
stock. 

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There's no set answer in 
valuation. 

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In fact, there's a number of 
ways to value a company. 

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You can value a company through 
revenue multiples. 

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You can value it through 
earnings per share. 

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You can value it through free 
cash flow, free cash flow per 

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share share. 
You can value it through EBITDA 

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or enterprise value. 
There's all sorts of ways to 

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look at valuation of a company 
and rather than focus on just 

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one and try to nitpick one way 
of valuing Palantir, I want to 

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look at it through multiple 
ways. 

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We can illustrate the price of 
Palantir by looking at it 

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through multiple lenses. 
Now the first one we can look at

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is the free cash flow. 
This is one that I look at for 

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every company. 
Basically what Qualtrum shows 

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here, this free cash flow yield 
is the yield you're getting when

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you buy the stock. 
And this is very similar to the 

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yield that you get from a bond. 
For example, if you look at a 

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stock and it has a 4% free cash 
flow yield, that means that if 

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you invest $100 based on their 
last 12 months of cash flows, 

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they can pay you $4.00 back in a
calendar year. 

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So you invest $100, you get 
$4.00 back per year. 

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Now hopefully they grow that 
amount year over year. 

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Bonds can't do that. 
They just pay you the same 

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amount. 
Hopefully stocks will grow and 

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they'll pay you $4.00 and $5 and
$6 back per year. 

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But this is the current yield, 
$100 invested. 

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Getting back $4.00 per year 
means a 4% yield # here right 

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now, not factoring in stock 
based comp, not factoring in 

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dilution, which is a whole other
thing we could factor in. 

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But even leaving that out, has a
.81% free cash flow yield based 

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on the trailing 12 months. 
Again, if we look at this and we

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look at the free cash flow # 
tier generated $700 million of 

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free cash flow. 
That's a lot of free cash flow. 

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But unfortunately, the market 
cap is $82 billion. 

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The way you look at the yield is
you divide the amount that they 

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generate in cash flows. 
That's the 700 million divided 

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by the $82 billion market cap. 
You move the decimals 2 places 

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and you get that .85%. 
And that's how we get the free 

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cash flow yield of .84%, a below
1% yield, which is important. 

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If we look at Palantir from this
lens, that means that based on 

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the trailing cash flows, if we 
invested $100, we get back $0.84

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per year based on $100 
investment. 

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And that is rather low even 
looking at Palantir compared to 

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comparable companies. 
Now I realize that Palantir is 

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unlike most companies. 
It's an AI company, It's led by 

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a great leader. 
It has a great story. 

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Palantir is awesome. 
But there's also a lot of other 

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great companies, a lot of other 
great similar software 

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companies. 
And if we compare Palantir to 

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any of them, you may notice a 
difference here, for example, we

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look at another company, Crowd 
Strike. 

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This is one that's just 
incredible. 

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The growth is monumental. 
It is growing lockstep every 

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single quarter even after their 
failed a software update where 

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they had problems. 
You can take a look at the 

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revenue, it looks like it's 
fabricated, but this is real. 

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This is all recurring 
subscription revenue. 

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So this is virtually the best 
type of revenue you can get. 

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It's profitable subscription 
revenue, fast growing cash 

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flows. 
If we look at the free cash 

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flow, the customer growth, all 
of it is growing, lock step more

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predictable, more reliable than 
most software companies and the 

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free cash flow is at $1.1 
billion, again growing every 

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single quarter of the year 
lockstep. 

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So this is a fantastic company. 
And if we look at the free cash 

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flow yield, it is double. 
Palantirs As expensive as 

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Crowdstrike is, this company's 
still at double the yield of 

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Palantir's. 
So Palantir is far more 

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expensive on a free cash flow 
basis than Crowdstrike. 

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But we can look at other 
companies here again, Palantir's

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at a .84% yield. 
ServiceNow is at a 1.67, it's 

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over double. 
We have Palo Alto Network, 

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another great fast growing 
company at a 2.81% yield. 

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This is about 3 times what 
Palantir's is. 

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Datadog at 1.74, we have 
Synopsis at 1.28. 

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Even Microsoft, which I consider
really expensive right now, has 

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over double the free cash flow 
yield is Palantir. 

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Viva Systems has three times the
yield at 2.86, Adobe's at 2.83, 

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Intuit's at 2.67, Hubspot's at 
1.19, Oracle is at 2.44, 

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Snowflake is at 2.23, Roper's at
3.47, Autodesk is at 1.81, at 

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Lassine's at 3.41, Work Day is 
at 3.34, SAP is at 2.5, and 

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Salesforce has the highest free 
cash flow yield, meaning based 

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on the cash flows, it is the 
cheapest company out of every 

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major enterprise software 
company with a free cash flow 

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yield of 4.39. 
So in summary, when we look at 

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the free cash flow yields of 
every major enterprise company, 

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Palantir has around half the 
yield of the average, meaning 

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that on average it's around 
double the price of any other 

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major enterprise company based 
on its trailing metrics. 

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Now it is true that Palantir may
be growing faster and maybe it 

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will grow it's free cash flow 
way faster than these other 

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companies. 
Maybe it's all worth it. 

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I'm not saying it's not. 
I'm not saying that Palantir 

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can't make it worth it. 
But what I am saying is a lot is

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already priced into the stock 
based on the cash flows. 

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Investors in Palantir are 
assuming that the stock is 

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roughly twice as valuable as any
other comparable stock and 

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software. 
Now, again, that may be the 

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case, but that's quite the 
assumption to make. 

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Now again, there's many ways to 
value a stock. 

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The free cash flow yield's not 
the only one. 

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We can also do it based on an 
earnings per share basis. 

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This is where you take the next 
four quarters of the annals 

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estimates and then you see the 
multiple that investors are 

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paying for those next four 
quarters of earnings. 

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With Palantir, the forward PE is
currently 87.8, so it's almost 

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pushing a 94 PE ratio. 
We can look at other, again, 

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very great companies, ones like 
Crowdstrike. 

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They have huge total addressable
markets. 

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They have all subscription 
revenue. 

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They're growing very fast. 
They have still very fast 

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revenue growth that is faster 
than Palantir's revenue growth. 

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And this stock is still trading 
at a lower PE ratio. 

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We have one like ServiceNow at a
53. 

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Again, that's compared to 
Palantir's 88. 

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We have Cadence Design at A39 
4PE. 

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We have Palo Alto Network at a 
53. 

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We have Datadog at a 58, 
Synopsis at a 34, Microsoft at a

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32, Viva at a 34, Adobe at a 25,
Intuit Data 32, HubSpot at a 59,

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Oracle out of 26, Snowflake out 
of 38, Roper out of 27, Autodesk

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at a 33, Atlassian at a 48, Work
Day at a 35, SAP at a 33 and 

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Salesforce at a 27.8. 
So once again, we find that 

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Palantir has a multiple on its 
earnings that are roughly double

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the average of every major 
enterprise software company, 

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many of which are growing really
fast. 

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They have free cash flow that's 
growing quickly. 

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They have very resilient 
business models, but Palantir's 

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still worth roughly double. 
Now again, you may say that 

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Palantir so far really shouldn't
be judged on an earnings basis 

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or even a free cash flow basis 
because so far they're just 

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trying to land contracts. 
They're trying to grow their 

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revenue and grow their reach. 
They're not super focused on 

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generating profits today, and 
that may be the case. 

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That's the case often with 
software companies that are 

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still in the expansion phase. 
But there's also ways to value 

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it based on pure revenue, 
revenue multiples based on the 

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enterprise value to sales. 
Sales is another word for 

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revenue. 
If we look at the relative 

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valuation of Palantir compared 
to other enterprise software 

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companies on an enterprise value
to revenue multiple, you'll 

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notice that one sticks out a 
little bit from the others. 

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We have here all these companies
that we've been looking at, all 

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of these great companies with 
wide moats, resilient business 

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models, and most of them trade 
at an enterprise value to sales 

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multiple of around 9.9 times. 
That is the median across the 

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industry, so just shy of 10 
times. 

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Palantir's enterprise value to 
sales multiple is 27.7. 

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It's over double the median of 
all of these companies, and in 

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fact, it's far more than anyone 
even close even crowd strike. 

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For as expensive this company 
is, it has an enterprise Value 

224
00:11:28,120 --> 00:11:32,360
to revenue multiple of 15.3 
against Palantir's 27.7. 

225
00:11:32,360 --> 00:11:35,000
This should paint a stark 
picture of what's currently 

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00:11:35,000 --> 00:11:38,160
being priced into this stock. 
And you'll notice here that the 

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00:11:38,160 --> 00:11:41,600
one that's supposed to be the 
loser of Palantir, the one that 

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00:11:41,600 --> 00:11:44,960
has all the gloomy sentiment 
right now, is Salesforce, which 

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00:11:44,960 --> 00:11:47,440
on almost every metric is 
currently the cheapest 

230
00:11:47,440 --> 00:11:49,720
enterprise stock. 
But this stark visual should be 

231
00:11:49,720 --> 00:11:51,960
a reminder of what you're paying
for a company. 

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00:11:52,040 --> 00:11:54,400
The reason I bring up all of 
these visuals is just to 

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00:11:54,400 --> 00:11:57,680
illustrate that this company is 
expensive when you base it off 

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00:11:57,680 --> 00:12:01,440
of any relative investment. 
Palantir is expensive on a free 

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00:12:01,440 --> 00:12:04,560
cash flow yield basis. 
Palantir is expensive based on 

236
00:12:04,560 --> 00:12:07,520
an earnings per share basis, and
it's expensive based on a 

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00:12:07,520 --> 00:12:09,960
revenue basis. 
No matter which way you slice 

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00:12:09,960 --> 00:12:13,160
it, this company's trading at an
extremely rich valuation. 

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00:12:13,560 --> 00:12:16,960
Now, I've been very careful in 
both the title of this video and

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00:12:16,960 --> 00:12:20,400
in the video itself to use the 
terms expensive and cheap, not 

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00:12:20,400 --> 00:12:23,200
the terms overvalued and 
undervalued, because a company 

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00:12:23,200 --> 00:12:26,240
can be expensive and still be 
undervalued. 

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00:12:26,440 --> 00:12:29,200
We've seen examples of that 
before where company looks 

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00:12:29,200 --> 00:12:31,640
incredibly expensive and it 
turns out it was still 

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00:12:31,640 --> 00:12:35,000
undervalued at the time. 
That's happened before, and I'm 

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00:12:35,000 --> 00:12:37,400
not saying that that can't 
happen with Palantir. 

247
00:12:37,840 --> 00:12:40,000
There is a chance of this 
company outperforming 

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00:12:40,000 --> 00:12:43,000
expectations and turning out to 
be undervalued. 

249
00:12:43,240 --> 00:12:46,280
Whether or not a company's truly
undervalued or overvalued 

250
00:12:46,440 --> 00:12:49,360
depends heavily on how much cash
they generate in the future. 

251
00:12:49,560 --> 00:12:52,440
Since we don't perfectly know 
the future, we don't perfectly 

252
00:12:52,440 --> 00:12:54,920
know if a company's overvalued 
or undervalued. 

253
00:12:55,400 --> 00:12:58,320
But judging whether or not a 
company's expensive or cheap 

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00:12:58,520 --> 00:13:02,040
trading with high expectations 
or low expectations is based on 

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00:13:02,040 --> 00:13:03,680
history. 
Now, I don't bring up any of 

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00:13:03,680 --> 00:13:06,280
this to attack your stock or to 
bum you out if you're invested 

257
00:13:06,280 --> 00:13:08,640
in Palantir, I promise you 
that's not the goal. 

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00:13:09,000 --> 00:13:11,560
In fact, I've been in the same 
situation before with some of 

259
00:13:11,560 --> 00:13:15,920
the companies that I own. 
For example, Costco, Costco's a 

260
00:13:15,920 --> 00:13:19,600
very expensive stock based on 
almost all of the metrics. 

261
00:13:19,840 --> 00:13:22,760
You look at it at a free cash 
flow yield instead of 1.8%. 

262
00:13:23,080 --> 00:13:26,000
It's not nearly as expensive as 
Palantir, but for a company 

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00:13:26,000 --> 00:13:29,400
that's more established the 
larger chain, it's a company 

264
00:13:29,400 --> 00:13:33,720
that that's a retail company, 
1.8% is very expensive. 

265
00:13:34,120 --> 00:13:38,240
It also trades at A50 Ford PE 
ratio which is around double 

266
00:13:38,240 --> 00:13:40,080
what Walmart and Target trade 
at. 

267
00:13:40,480 --> 00:13:43,280
So Costco stands out just like 
Palantir as being a very 

268
00:13:43,280 --> 00:13:46,280
expensive company and I still 
refuse to sell it. 

269
00:13:46,640 --> 00:13:50,200
So I knowingly hold a very 
expensive company. 

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00:13:50,480 --> 00:13:53,800
When I look at My Portfolio, I 
look at the companies I hold. 

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00:13:54,280 --> 00:13:56,600
I've held Costco for such a long
period of time. 

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00:13:56,600 --> 00:14:00,000
It's been such a great stock. 
It it's just continued to grow, 

273
00:14:00,000 --> 00:14:03,000
its earnings grow, its cash 
flows, pay huge dividends. 

274
00:14:03,000 --> 00:14:06,920
At the same time, I'm so much in
the green on this stock that I 

275
00:14:06,920 --> 00:14:09,640
just don't feel like selling a 
company that has so many things 

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00:14:09,640 --> 00:14:13,320
going the right direction. 
So in many ways, I feel very 

277
00:14:13,320 --> 00:14:16,600
similar with the way that I hold
Costco today, that I think the 

278
00:14:16,600 --> 00:14:19,600
same way many investors in 
Palantir fill where the stock 

279
00:14:19,600 --> 00:14:22,520
has done so well, you know, it's
trading up to a very rich 

280
00:14:22,520 --> 00:14:24,880
valuation. 
But in many cases, you might 

281
00:14:24,880 --> 00:14:26,760
just choose to hold onto it 
anyway. 

282
00:14:27,040 --> 00:14:30,080
And I respect that decision. 
The one risk of holding a 

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00:14:30,080 --> 00:14:33,680
company like Costco or holding 
one like Palantir, one that's 

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00:14:33,680 --> 00:14:37,400
trading at a very high multiple 
and a rich valuation is there's 

285
00:14:37,400 --> 00:14:41,240
no room for mistakes. 
There's no room for any holes in

286
00:14:41,240 --> 00:14:44,640
the armor of these companies. 
If Costco is to show any real 

287
00:14:44,640 --> 00:14:48,120
weakness at all, any problems 
with the business model, any new

288
00:14:48,120 --> 00:14:50,520
competitors that are really 
threatening its business model, 

289
00:14:50,800 --> 00:14:54,280
this stock would crater. 
The stock could go down from a 

290
00:14:54,280 --> 00:14:58,840
54 PE to a 30, going down 40% in
value. 

291
00:14:59,160 --> 00:15:02,240
It could go down even further. 
Costco's currently priced to not

292
00:15:02,240 --> 00:15:05,040
have any major challenges or 
mistakes, and I hold Costco 

293
00:15:05,040 --> 00:15:07,320
believing that it's not going to
have any major challenges or 

294
00:15:07,320 --> 00:15:09,600
mistakes. 
I'm extremely confident in the 

295
00:15:09,600 --> 00:15:11,720
future of the company. 
I think it's one of the most 

296
00:15:11,720 --> 00:15:15,800
proven resistant all weather 
businesses that exist today. 

297
00:15:16,240 --> 00:15:20,160
So I'm OK holding the company at
a high valuation because I think

298
00:15:20,160 --> 00:15:23,880
the chances of something wrong 
with it, something challenging 

299
00:15:23,880 --> 00:15:26,240
happening with it are extremely 
slim. 

300
00:15:26,240 --> 00:15:28,320
Palantir is currently priced the
same way. 

301
00:15:28,480 --> 00:15:30,680
Palantir is priced in a way 
where if investors find 

302
00:15:30,680 --> 00:15:33,760
themselves having any concerns 
about the future, any changes in

303
00:15:33,760 --> 00:15:36,920
forecast for future expected 
growth, any problems with 

304
00:15:36,920 --> 00:15:41,160
competition, any negative turn 
in their story and this stock is

305
00:15:41,160 --> 00:15:44,280
going to sink. 
It is not price for negativity. 

306
00:15:44,360 --> 00:15:46,880
Palanter is currently priced to 
have an extremely prosperous 

307
00:15:46,880 --> 00:15:48,800
future. 
We also saw the same thing from 

308
00:15:48,800 --> 00:15:50,680
Morningstar. 
They're bullish on the stocks 

309
00:15:50,680 --> 00:15:51,920
future. 
They think it has a great 

310
00:15:51,920 --> 00:15:54,680
future, but they're concerned 
about the valuation from a 

311
00:15:54,680 --> 00:15:57,160
valuation standpoint. 
While our forward-looking 

312
00:15:57,160 --> 00:16:00,160
estimates testify to our 
optimism on the name, we remain 

313
00:16:00,160 --> 00:16:02,960
skeptical of the exuberant 
valuation at which Palanter is 

314
00:16:02,960 --> 00:16:05,200
trading. 
Even without factoring in the 

315
00:16:05,200 --> 00:16:08,200
sharp rise in the firm stock 
price after hours, Palanter 

316
00:16:08,200 --> 00:16:11,880
remains the most expensive 
software company in our coverage

317
00:16:12,080 --> 00:16:15,560
with an enterprise value sales 
multiple of around 20 times. 

318
00:16:15,840 --> 00:16:19,520
Now it's getting closer to 30. 
We'd caution investors that sky 

319
00:16:19,520 --> 00:16:23,000
high expectations baked into the
firms current valuation. 

320
00:16:23,520 --> 00:16:27,000
Any small bump on the road can 
crater the stock price and 

321
00:16:27,000 --> 00:16:28,560
they're of course correct in 
that statement. 

322
00:16:28,600 --> 00:16:31,520
Any bump in the road can cause a
huge problem for Palantir. 

323
00:16:31,520 --> 00:16:33,120
So overall that was basically 
it. 

324
00:16:33,120 --> 00:16:35,600
I thought it'd be good to check 
in on Palantir as I've been 

325
00:16:35,600 --> 00:16:38,800
following this company for years
and give some updated thoughts 

326
00:16:38,800 --> 00:16:42,200
on it right now, again, I'm not 
bearish on the company. 

327
00:16:42,200 --> 00:16:43,480
I think they're doing a great 
job. 

328
00:16:43,480 --> 00:16:46,160
I like their product road map. 
I like that they're taking over 

329
00:16:46,160 --> 00:16:48,560
market share. 
I like Alex Karp is a leader. 

330
00:16:48,560 --> 00:16:51,240
I've been impressed by him. 
So I like this stock a lot 

331
00:16:51,240 --> 00:16:54,040
fundamentally, but I also think 
it's good to compare that 

332
00:16:54,040 --> 00:16:56,880
against what's currently priced 
in and try to do updated 

333
00:16:56,880 --> 00:17:00,080
analysis on the risk and reward.
And right now, Palantir has 

334
00:17:00,080 --> 00:17:03,080
shifted into that bracket where 
I think there's a lot higher 

335
00:17:03,080 --> 00:17:06,240
risk in valuation than there was
just a couple years ago. 

336
00:17:06,240 --> 00:17:08,880
But I'll continue to follow it 
along and see how it develops. 

337
00:17:08,920 --> 00:17:10,720
Now let's go to move on to some 
news stories here. 

338
00:17:10,720 --> 00:17:13,280
The first one is we have an 
update on the news that I 

339
00:17:13,280 --> 00:17:16,200
covered a couple weeks ago. 
If you followed this channel a 

340
00:17:16,200 --> 00:17:19,640
few weeks ago, I covered news 
that Netflix had a bit of a 

341
00:17:19,640 --> 00:17:22,359
controversy, and they do from 
time to time. 

342
00:17:22,720 --> 00:17:25,880
But this one was because there's
a big headline that this guy, 

343
00:17:25,880 --> 00:17:29,280
Reed Hastings, the former CEO of
Netflix and current chair of the

344
00:17:29,280 --> 00:17:34,520
company, he donated, I think it 
was like 4 or $5,000,000 to 

345
00:17:34,640 --> 00:17:37,120
Kamala Harris's campaign through
some super PAC. 

346
00:17:37,720 --> 00:17:40,520
So he has a lot of money. 
He founded Netflix, he was like 

347
00:17:40,520 --> 00:17:43,960
the creator of it and he donated
some money to his preferred 

348
00:17:43,960 --> 00:17:47,120
candidate. 
Now he donated his own money. 

349
00:17:47,320 --> 00:17:50,600
He didn't use Netflixs balance 
sheet or Netflixs funds. 

350
00:17:50,960 --> 00:17:55,120
He used his personal money that 
he made working at Netflix, but 

351
00:17:55,120 --> 00:17:56,840
it was his personal money that 
he donated. 

352
00:17:57,080 --> 00:18:00,160
So Netflix can't control the 
donations of their employees. 

353
00:18:00,400 --> 00:18:02,040
That's not something that you 
can legally do. 

354
00:18:02,040 --> 00:18:05,240
Netflix can't say, hey, 
employees, stop donating to 

355
00:18:05,240 --> 00:18:07,480
specific candidates. 
You just can't do that. 

356
00:18:07,920 --> 00:18:11,960
But regardless, the affiliation 
of him being the former creator 

357
00:18:11,960 --> 00:18:15,160
of Netflix and donating such a 
large money to the Kamala Harris

358
00:18:15,160 --> 00:18:18,880
campaign meant that he was 
targeted by a boycott from 

359
00:18:18,880 --> 00:18:21,480
conservatives. 
I think that's OK to do. 

360
00:18:21,520 --> 00:18:24,440
You can support whatever 
business you want, but we didn't

361
00:18:24,440 --> 00:18:27,600
really see what happened from 
that boycott until we got the 

362
00:18:27,640 --> 00:18:29,600
analytics. 
And that's what this article 

363
00:18:29,600 --> 00:18:31,880
shows. 
It shows an update on what that 

364
00:18:31,880 --> 00:18:34,600
boycott really did. 
The headline is that the Netflix

365
00:18:34,600 --> 00:18:37,600
cancellation spiked after Reed 
Hastings donated to the Kamala 

366
00:18:37,600 --> 00:18:39,680
Harris campaign. 
Looking further into this, they 

367
00:18:39,680 --> 00:18:43,520
say Netflix suffered a surge in 
cancellations in the days after 

368
00:18:43,520 --> 00:18:46,920
the Co founder and chairman Reed
Hastings endorsed Kamala Harris 

369
00:18:47,160 --> 00:18:49,680
for president and donated 
millions to our campaign. 

370
00:18:50,000 --> 00:18:53,240
The rate of cancellations, or 
churn in the industry parlance, 

371
00:18:53,720 --> 00:18:57,160
nearly tripled in the US after 
his endorsement, according to 

372
00:18:57,160 --> 00:18:59,520
the researcher. 
Antenna, the streaming giant, 

373
00:18:59,520 --> 00:19:00,960
has the lowest turn in the 
history. 

374
00:19:01,240 --> 00:19:04,040
So they're basing this off of 
the research of Antenna. 

375
00:19:04,480 --> 00:19:07,680
They have some different ways of
getting this data because of 

376
00:19:07,680 --> 00:19:11,440
course Netflix isn't releasing 
daily cancellation rates, but I 

377
00:19:11,440 --> 00:19:15,200
think they can use some other 
third party stuff like credit 

378
00:19:15,200 --> 00:19:18,840
cards and PayPal and and 
different transactions and 

379
00:19:19,000 --> 00:19:21,960
traffic to different websites to
try to determine what the 

380
00:19:21,960 --> 00:19:25,200
normalized cancellation rate and
then if there's any spike. 

381
00:19:25,400 --> 00:19:27,000
I think that's how they're 
getting this data. 

382
00:19:27,320 --> 00:19:30,680
They say the customers in the US
canceled Netflix at a higher 

383
00:19:30,680 --> 00:19:35,400
rate in July, 2.8% than any 
month since February. 

384
00:19:35,480 --> 00:19:39,160
But the five day period after 
Hastings endorsement was unusual

385
00:19:39,440 --> 00:19:42,200
even for July. 
Hastings, long time Democratic 

386
00:19:42,200 --> 00:19:45,360
donor endorsed Harris in a post 
in the social media platform. 

387
00:19:45,680 --> 00:19:48,040
A day later, Hastings told the 
information that he had donated 

388
00:19:48,040 --> 00:19:50,480
$7,000,000. 
So it was 7 million. 

389
00:19:50,480 --> 00:19:53,400
That's a that's a lot of money 
to the Pro Harris super PAC. 

390
00:19:53,440 --> 00:19:55,920
Shortly after Hastings 
endorsement, fans of Donald 

391
00:19:55,920 --> 00:19:58,160
Trump begin urging people to 
drop the service. 

392
00:19:58,320 --> 00:20:00,560
Some posted photos showing that 
they close their accounts 

393
00:20:00,560 --> 00:20:04,040
alongside the hashtag cancel 
Netflix three days after the 

394
00:20:04,040 --> 00:20:07,040
donation became public. 
July 26th was the single worst 

395
00:20:07,040 --> 00:20:09,480
day for Netflix cancellations 
this year. 

396
00:20:09,560 --> 00:20:11,200
So this looks bad for Netflix 
having. 

397
00:20:11,320 --> 00:20:14,280
Any spike in cancellations is 
never a good thing, especially 

398
00:20:14,280 --> 00:20:17,280
when the company is so dependent
on their subscriber number. 

399
00:20:17,440 --> 00:20:20,360
We've seen this in the past. 
Netflix is reporting their 

400
00:20:20,360 --> 00:20:23,680
subscriber number until the 
beginning of 2025, so they're 

401
00:20:23,680 --> 00:20:26,400
still going to be reporting it 
next quarter, which is coming up

402
00:20:26,400 --> 00:20:28,920
in just a month. 
If there is a spike in 

403
00:20:28,920 --> 00:20:32,280
cancellations and Netflix 
reports a lower amount of 

404
00:20:32,280 --> 00:20:35,240
subscribers than expected, that 
could cause a sell off in the 

405
00:20:35,240 --> 00:20:37,680
stock. 
And we've seen this before. 

406
00:20:37,680 --> 00:20:40,200
They say the spike in 
cancellations at Netflix lasted 

407
00:20:40,200 --> 00:20:42,720
just a few days. 
And they also note that it 

408
00:20:42,720 --> 00:20:46,680
wasn't as severe as reaction in 
2020 when conservatives asked 

409
00:20:46,680 --> 00:20:49,640
Netflix to take down the French 
movie Cuties, which they felt 

410
00:20:49,640 --> 00:20:52,440
exploited children. 
So if you remember that whole 

411
00:20:52,440 --> 00:20:55,520
controversy, that was one of the
biggest ones Netflix has ever 

412
00:20:55,520 --> 00:20:57,400
had. 
They licensed this movie called 

413
00:20:57,400 --> 00:21:00,200
Cuties. 
I haven't watched it, but a lot 

414
00:21:00,200 --> 00:21:03,000
of people are very upset with it
because it it potentially 

415
00:21:03,320 --> 00:21:06,320
exploited children. 
It was a big mess and a lot of 

416
00:21:06,320 --> 00:21:08,240
people cancelled Netflix, 
millions of people. 

417
00:21:08,240 --> 00:21:12,320
Did they say that this is not 
quite as bad, that this one only

418
00:21:12,320 --> 00:21:15,080
lasted a couple of days? 
It hasn't been as big of a 

419
00:21:15,080 --> 00:21:17,560
reaction as the French movie 
Cuties. 

420
00:21:17,560 --> 00:21:19,520
Now, obviously, I'm an investor 
in Netflix. 

421
00:21:19,520 --> 00:21:21,040
I've held this company for some 
time. 

422
00:21:21,280 --> 00:21:24,600
I think it's a great investment.
It's one that's it's done really

423
00:21:24,600 --> 00:21:26,240
well so far. 
It's recovered. 

424
00:21:26,240 --> 00:21:28,880
There's a lot of bullish 
momentum in Netflix and it is 

425
00:21:28,880 --> 00:21:31,520
true that a large amount of 
cancellations, like a million 

426
00:21:31,520 --> 00:21:34,680
people canceling the service 
over Reed Hastings donating 

427
00:21:34,680 --> 00:21:37,280
Democrat could potentially harm 
the stock. 

428
00:21:37,600 --> 00:21:41,320
So I wouldn't be surprised if 
this next upcoming earnings was 

429
00:21:41,320 --> 00:21:44,400
a little bit risky for Netflix. 
We could see a drop after hours 

430
00:21:44,400 --> 00:21:47,520
if they have disappointing 
subscriber numbers, but Even so,

431
00:21:47,760 --> 00:21:50,920
I'm still not concerned about 
this stock and any large drop in

432
00:21:50,920 --> 00:21:53,560
the stock price, in my opinion, 
is a buying opportunity. 

433
00:21:53,680 --> 00:21:56,280
If we look at the data here from
Qualtrim, we have one of the 

434
00:21:56,280 --> 00:21:58,800
KPIs that tracks the total 
subscribers over time. 

435
00:21:58,840 --> 00:22:02,000
This is what it looks like. 
They say that this controversy 

436
00:22:02,000 --> 00:22:05,680
so far has not been as bad as 
the Cuties controversy. 

437
00:22:05,800 --> 00:22:08,520
So we go back to August or 
September of 2020. 

438
00:22:08,720 --> 00:22:10,480
We have the amount of 
subscribers right here. 

439
00:22:10,720 --> 00:22:14,960
Netflix had around 195 million 
subscribers when they had that 

440
00:22:14,960 --> 00:22:17,920
big controversy and boycott over
the Cuties film. 

441
00:22:18,320 --> 00:22:23,000
Since then, Netflix has gained 
roughly 75,000,000 subscribers. 

442
00:22:23,000 --> 00:22:26,240
They're now at 277 million 
subscribers. 

443
00:22:26,720 --> 00:22:30,760
That is after that boycott. 
This is what I mean by Netflix 

444
00:22:30,760 --> 00:22:34,080
being inevitable. 
It's true that a boycott can 

445
00:22:34,080 --> 00:22:36,800
take down the subscriber number 
by a couple million or half a 

446
00:22:36,800 --> 00:22:40,400
million for maybe a quarter or 
two, but overtime, the dominant 

447
00:22:40,400 --> 00:22:43,400
streaming player will continue 
to gain global market share. 

448
00:22:43,560 --> 00:22:46,480
The company's current path and 
global growth, in my opinion, is

449
00:22:46,480 --> 00:22:50,280
inevitable and the donations of 
a former CEO are not going to be

450
00:22:50,280 --> 00:22:53,440
enough to change that course. 
Now, on a side note, Elon Musk 

451
00:22:53,440 --> 00:22:57,080
continues to go after Netflix by
sharing how liberal or Democrat 

452
00:22:57,080 --> 00:22:59,640
the company is. 
For example, he says just 

453
00:22:59,640 --> 00:23:02,560
yesterday on Twitter that 
donations by Netflix employed 

454
00:23:02,760 --> 00:23:06,080
could not be more lopsided in 
favor of the Democrat Party. 

455
00:23:06,280 --> 00:23:10,360
It's nearly 100% Democrat. 
And he shares this graphic here,

456
00:23:10,560 --> 00:23:13,960
which shows the election 
contributions in 2024 by major 

457
00:23:13,960 --> 00:23:16,920
companies. 
Netflix is nearly 100% to the 

458
00:23:16,920 --> 00:23:19,040
Democrat side. 
Then you have other companies 

459
00:23:19,040 --> 00:23:23,680
like Alphabet at 89%. 
You have Twilio at 100%. 

460
00:23:24,000 --> 00:23:25,880
You have other companies like 
Blackstone that are mostly 

461
00:23:25,880 --> 00:23:29,200
conservative, but basically 
every media company and 

462
00:23:29,200 --> 00:23:31,400
technology company is mostly 
Democrat. 

463
00:23:31,400 --> 00:23:33,760
And this is where, frankly, I 
don't agree with a lot of these 

464
00:23:33,760 --> 00:23:36,560
posts and the criticisms focus 
solely on Netflix. 

465
00:23:36,880 --> 00:23:40,040
It is true that Netflix is a 
mostly Democrat or liberal 

466
00:23:40,040 --> 00:23:43,240
company, but so is every 
entertainment company. 

467
00:23:43,640 --> 00:23:46,520
If you were to cancel Netflix 
and find your entertainment 

468
00:23:46,560 --> 00:23:48,920
somewhere else, where else are 
you going to go? 

469
00:23:49,200 --> 00:23:51,960
What is the conservative 
entertainment company that's 

470
00:23:51,960 --> 00:23:55,440
also a dominant streamer that 
provides thousands of hours of 

471
00:23:55,440 --> 00:23:57,520
entertainment? 
Are you going to go to YouTube? 

472
00:23:57,880 --> 00:24:02,040
Google's 90% liberal or 90% 
Democrat based on their 

473
00:24:02,040 --> 00:24:05,160
donations. 
Out of the 180,000 employees, 

474
00:24:05,400 --> 00:24:08,240
there are 160,000 that are 
Democrat. 

475
00:24:08,880 --> 00:24:11,680
So YouTube is not some 
conservative bastion. 

476
00:24:11,680 --> 00:24:13,480
It's not some conservative place
to go. 

477
00:24:13,480 --> 00:24:15,480
Are you going to go to Warner 
Brothers Discovery? 

478
00:24:15,680 --> 00:24:18,520
It's almost 100% Democrat. 
Are you going to go to Peacock 

479
00:24:18,520 --> 00:24:20,440
with NBC? 
Do you consider that a 

480
00:24:20,440 --> 00:24:22,840
conservative company? 
Of course it's not. 

481
00:24:22,840 --> 00:24:25,080
Companies that are in show 
business and entertainment are 

482
00:24:25,080 --> 00:24:27,840
mostly liberal or Democrat. 
Companies that are in 

483
00:24:27,840 --> 00:24:31,400
agriculture, oil and gas, 
trucking, farming, those are 

484
00:24:31,400 --> 00:24:33,800
mostly conservative. 
So this mostly just speaks to 

485
00:24:33,800 --> 00:24:36,520
the industry these companies are
in and the headquarters of where

486
00:24:36,520 --> 00:24:38,160
they're located. 
I also disagree with the 

487
00:24:38,160 --> 00:24:41,080
caricature painted here that 
Netflix is just a leftist 

488
00:24:41,080 --> 00:24:44,280
company making content only for 
Democrats or liberals. 

489
00:24:44,560 --> 00:24:46,640
It sure doesn't seem that way 
with many of the pieces of 

490
00:24:46,640 --> 00:24:49,200
content they're putting out. 
They invite on people like Joe 

491
00:24:49,200 --> 00:24:51,760
Rogan, Bill Burr, Dave 
Chappelle, Shane Gillis. 

492
00:24:52,080 --> 00:24:54,360
These are people that I don't 
think are necessarily right 

493
00:24:54,360 --> 00:24:57,160
wing, but they're also not 
extreme leftist by any means. 

494
00:24:57,520 --> 00:25:00,200
So I think Netflix tries to 
create content that is consumed 

495
00:25:00,200 --> 00:25:02,200
by everyone. 
It's a global company. 

496
00:25:02,360 --> 00:25:04,520
They're going to have some 
content that appeals more to the

497
00:25:04,520 --> 00:25:06,440
right, some that appeals more to
the left. 

498
00:25:06,440 --> 00:25:09,200
And I have to believe that this 
boycott because of this donation

499
00:25:09,200 --> 00:25:11,480
will likely be forgotten about 
in a few months. 

500
00:25:11,560 --> 00:25:14,000
Now, moving on, we get to the 
story that Google is once again 

501
00:25:14,000 --> 00:25:17,760
being sued by Tim Sweeney, the 
owner of Epic Games, which is 

502
00:25:17,760 --> 00:25:20,080
the creator of the popular game 
Fortnite. 

503
00:25:20,360 --> 00:25:23,160
He has sued them before. 
They note that he's actually won

504
00:25:23,160 --> 00:25:26,720
the case in the past December, 
and Epic is now suing them 

505
00:25:26,720 --> 00:25:28,960
again. 
The Fortnite game developer has 

506
00:25:28,960 --> 00:25:31,520
filed a second antitrust lawsuit
against Google. 

507
00:25:31,640 --> 00:25:34,200
And now additionally, Samsung 
accusing them of illegally 

508
00:25:34,200 --> 00:25:36,760
conspiring to undermine third 
party app stores. 

509
00:25:36,880 --> 00:25:38,840
So they're accusing them of a 
conspiracy here. 

510
00:25:38,840 --> 00:25:41,480
That's quite the accusation. 
Let's take a look at what 

511
00:25:41,480 --> 00:25:44,600
Samsung and Google are doing. 
The lawsuit revolves around 

512
00:25:44,600 --> 00:25:48,120
Samsung's auto blocker feature, 
which now comes turned on by 

513
00:25:48,120 --> 00:25:51,080
default on new Samsung phones. 
While it's turned on, it 

514
00:25:51,080 --> 00:25:53,800
automatically keeps users from 
installing apps unless they come

515
00:25:53,800 --> 00:25:58,320
from authorized sources, namely 
Google and Samsung's app stores.

516
00:25:58,880 --> 00:26:03,560
So unless you download something
from the Google or or Samsung 

517
00:26:03,560 --> 00:26:07,040
App Store, it gets blocked by 
this auto blocker feature. 

518
00:26:07,360 --> 00:26:10,200
Epic claims that there's no 
process for any rival store to 

519
00:26:10,200 --> 00:26:12,920
become authorized. 
They have a screenshot here 

520
00:26:13,200 --> 00:26:17,440
showing if If we zoom in on this
it it shows an example of this 

521
00:26:17,440 --> 00:26:20,000
being blocked. 
It can't install the app from 

522
00:26:20,000 --> 00:26:22,360
unknown source. 
Auto blocker is on to keep your 

523
00:26:22,360 --> 00:26:24,720
phone safe. 
You can only install apps from 

524
00:26:24,720 --> 00:26:28,880
authorized sources. 
That seems you know, when I 

525
00:26:28,880 --> 00:26:31,720
first look at this headline, a 
lot of times what Tim Sweeney 

526
00:26:31,720 --> 00:26:34,840
complaints about I think is is 
not realistic. 

527
00:26:34,840 --> 00:26:36,720
A lot of times he's complaining 
about stuff where I don't think 

528
00:26:36,720 --> 00:26:39,240
he has a serious complaint. 
But this is one of the cases 

529
00:26:39,240 --> 00:26:43,000
where I actually agree with him.
It's blocking the download of 

530
00:26:43,000 --> 00:26:46,640
the App Store, but it's also not
giving you just a permission. 

531
00:26:47,000 --> 00:26:50,520
It should be more like Windows 
10 or 11 where it says, hey, 

532
00:26:50,520 --> 00:26:52,120
this is from an unauthorized 
source. 

533
00:26:52,480 --> 00:26:55,280
Are you sure you want this 
developer to be able to make 

534
00:26:55,280 --> 00:26:58,120
changes to your device? 
And then you have to OK it. 

535
00:26:58,520 --> 00:27:01,000
That's a permission. 
And it allows you to just one 

536
00:27:01,000 --> 00:27:03,880
click download the thing and let
it make changes to your device. 

537
00:27:04,360 --> 00:27:07,720
In this case, it looks like it's
not only saying hey, you don't 

538
00:27:07,720 --> 00:27:10,360
have permission for this, but 
you can't easily give it 

539
00:27:10,360 --> 00:27:13,280
permission on this screen. 
And that's the big thing that 

540
00:27:13,280 --> 00:27:16,280
Tim Sweeney is upset about. 
Epic claims that it now requires

541
00:27:16,280 --> 00:27:19,600
an exceptionally onerous 21 step
process to download a third 

542
00:27:19,600 --> 00:27:21,840
party App Store onto the Samsung
phone. 

543
00:27:22,280 --> 00:27:25,360
Now I haven't confirmed if it's 
really 21 steps, but if it was, 

544
00:27:25,360 --> 00:27:27,720
that seems ridiculous. 
I would agree with Tim Sweeney 

545
00:27:27,720 --> 00:27:30,160
there, they say. 
While saying it's 21 steps seems

546
00:27:30,160 --> 00:27:33,240
like an exaggeration, on Epic's 
own website they claim that you 

547
00:27:33,240 --> 00:27:36,360
can turn off this auto blocker 
feature in just four steps. 

548
00:27:36,840 --> 00:27:38,920
Now in my opinion, either way, 
that's too many. 

549
00:27:39,120 --> 00:27:41,040
You shouldn't have to take 
multiple steps. 

550
00:27:41,040 --> 00:27:44,840
It shouldn't be a multi step 
process to download an extra App

551
00:27:44,840 --> 00:27:45,960
Store. 
They say. 

552
00:27:45,960 --> 00:27:49,000
Not only does the auto blocker 
prevent me from installing the 

553
00:27:49,000 --> 00:27:52,800
new Epic Game Store, but the 
can't install app pop up no 

554
00:27:52,800 --> 00:27:55,280
longer tells how to turn auto 
blocker off. 

555
00:27:55,840 --> 00:27:58,880
So user wants to download Epic 
Games apps, they want to 

556
00:27:58,880 --> 00:28:00,960
download the Epic Game App 
Store. 

557
00:28:01,280 --> 00:28:03,600
They go to download it. 
It says that you can't because 

558
00:28:03,600 --> 00:28:06,200
of the auto blocker feature. 
And then you're just left to 

559
00:28:06,200 --> 00:28:08,480
figure it out yourself. 
You have to go to Google. 

560
00:28:08,480 --> 00:28:11,920
You have to Google how to turn 
off the auto blocker feature to 

561
00:28:11,920 --> 00:28:15,160
download Epic Game Store. 
Then you have to go to Epic 

562
00:28:15,160 --> 00:28:17,200
Games website and go through 
four steps. 

563
00:28:17,200 --> 00:28:20,720
So this does actually feel like 
Google and Samsung are doing 

564
00:28:20,720 --> 00:28:23,680
what they can to create as much 
friction as possible in 

565
00:28:23,680 --> 00:28:26,320
downloading this other store. 
Tim Sweeney says this thing is 

566
00:28:26,320 --> 00:28:28,480
not designed to protect against 
malware, which would be a 

567
00:28:28,480 --> 00:28:31,600
completely legitimate purpose. 
The things designed to prevent 

568
00:28:31,600 --> 00:28:33,400
competition. 
Now I'm reading this headline. 

569
00:28:33,400 --> 00:28:35,720
I originally didn't believe I'd 
be agreeing with Tim Sweeney, 

570
00:28:35,960 --> 00:28:38,840
but in this case, he's right. 
This isn't some protective 

571
00:28:38,840 --> 00:28:41,560
measure that Google and 
Samsung's taking to protect you 

572
00:28:41,560 --> 00:28:44,640
from viruses or malware. 
They are doing this to create as

573
00:28:44,640 --> 00:28:48,280
much friction as possible, as 
much confusion and downloading a

574
00:28:48,280 --> 00:28:51,480
competitive App Store. 
And I think that this argument 

575
00:28:51,480 --> 00:28:55,360
is going to pill to the judges. 
If I had a guess right now, I 

576
00:28:55,360 --> 00:28:56,840
think Epic's going to win this 
one too. 

577
00:28:56,880 --> 00:28:58,760
Now, this isn't a headline you 
see every day. 

578
00:28:58,960 --> 00:29:04,480
Google paid $2.7 billion to 
bring back an AI genius who quit

579
00:29:04,480 --> 00:29:07,280
in frustration. 
This is the guy here. 

580
00:29:07,280 --> 00:29:10,520
I had no clue who he was until I
read about this story, but 

581
00:29:10,520 --> 00:29:14,160
apparently he's so worthwhile to
Google that they paid nearly $3 

582
00:29:14,160 --> 00:29:16,800
billion to bring him back. 
They say that at a time when 

583
00:29:16,800 --> 00:29:19,200
tech companies are paying eye 
popping sums to hire the best 

584
00:29:19,200 --> 00:29:21,560
minds in artificial 
intelligence, Googles deal to 

585
00:29:21,560 --> 00:29:25,920
rehire Noam Shazier has left 
others in the dust now again, I 

586
00:29:25,920 --> 00:29:28,640
didn't know who this was but 
apparently he's authored a lot 

587
00:29:28,640 --> 00:29:30,800
of papers on AI. 
He's someone that's kind of like

588
00:29:30,800 --> 00:29:33,080
a thought leader in it. 
He co-authored a Seminole 

589
00:29:33,080 --> 00:29:35,080
research paper that kicked off 
the AI boom. 

590
00:29:35,320 --> 00:29:38,840
He quit Google in 2021 to start 
his own company after the search

591
00:29:38,840 --> 00:29:41,400
giant refused to research a chat
bot he developed. 

592
00:29:41,840 --> 00:29:46,000
When that startup character dot 
AI begin to flounder, his old 

593
00:29:46,000 --> 00:29:48,960
employer swooped in. 
Google wrote character a check 

594
00:29:48,960 --> 00:29:52,240
of around $2.7 billion, 
according to people with 

595
00:29:52,240 --> 00:29:54,560
knowledge of the deal. 
Within Google, Shazir's return 

596
00:29:54,560 --> 00:29:57,280
is widely viewed as the primary 
reason the company agreed to pay

597
00:29:57,480 --> 00:29:59,600
multibillion dollar licensing 
fee. 

598
00:30:00,000 --> 00:30:02,520
So the story goes that this guy 
worked at Google. 

599
00:30:02,520 --> 00:30:05,960
He was one of the main research 
guys, one of the geniuses behind

600
00:30:05,960 --> 00:30:08,080
this. 
He got frustrated because Google

601
00:30:08,080 --> 00:30:10,280
wouldn't let him go his own 
direction within the company. 

602
00:30:10,520 --> 00:30:15,080
He starts his own company, 
character AI, which has trouble.

603
00:30:15,080 --> 00:30:18,880
It flounders in their own words 
and then Google wanting to get 

604
00:30:18,880 --> 00:30:23,480
his talent back buys the entire 
company, but mostly just for 

605
00:30:23,480 --> 00:30:25,200
him. 
Google really doesn't care that 

606
00:30:25,200 --> 00:30:28,320
much about character AI or 
licensing what they created. 

607
00:30:28,600 --> 00:30:30,960
They just want Shazer back at 
the company. 

608
00:30:31,120 --> 00:30:33,600
Now the article goes further 
through the story of this guy, 

609
00:30:33,600 --> 00:30:36,200
how he got frustrated with the 
company, him coming back to 

610
00:30:36,200 --> 00:30:39,960
Google and of course him helping
to create new AI creations and 

611
00:30:40,120 --> 00:30:43,200
innovations at Google. 
But I think overall the biggest 

612
00:30:43,200 --> 00:30:45,880
point out stress is just the 
headline of this article. 

613
00:30:46,120 --> 00:30:49,800
It really puts into picture how 
much money these companies are 

614
00:30:49,800 --> 00:30:55,520
willing to spend an invest in 
AI, $27 billion to get back one 

615
00:30:55,520 --> 00:30:59,080
emloyee, one talent. 
He's not an executive, he's not 

616
00:30:59,080 --> 00:31:02,240
leading the company, but they 
need his talent for AI. 

617
00:31:02,680 --> 00:31:06,640
And it shows that AI research 
and AI spend is reaching a 

618
00:31:06,680 --> 00:31:08,800
boiling point. 
Companies are spending more and 

619
00:31:08,800 --> 00:31:10,720
more money on AI every single 
day. 

620
00:31:10,960 --> 00:31:13,520
And so far, the revenue and 
profit they've generated from 

621
00:31:13,520 --> 00:31:15,120
that spend has been 
questionable. 

622
00:31:15,360 --> 00:31:18,480
So overtime, we'll get to see if
all of this AI spend is really 

623
00:31:18,480 --> 00:31:20,440
worth it. 
That's all for this episode. 

624
00:31:20,440 --> 00:31:22,120
Hope you enjoyed. 
See you in the next one.