1 00:00:00,020 --> 00:00:04,300 Ejaaz: Yesterday, four of the five most valuable companies in the world reported the 2 00:00:04,300 --> 00:00:07,880 Ejaaz: biggest earnings in tech history within a 90-minute window. 3 00:00:08,040 --> 00:00:11,680 Ejaaz: And now, we have a pretty good idea of whether we're in an AI bubble or not. 4 00:00:11,840 --> 00:00:17,060 Ejaaz: Google, Amazon, Meta, and Microsoft reported their Q1 quarterly earnings, 5 00:00:17,100 --> 00:00:21,040 Ejaaz: and it blew every single Wall Street analyst's expectations out of the water. 6 00:00:21,180 --> 00:00:22,980 Ejaaz: Seriously, these numbers are pretty insane. 7 00:00:23,360 --> 00:00:28,440 Ejaaz: Google's earning per share was rated 94% above expectations. That's not a typo. 8 00:00:28,780 --> 00:00:34,400 Ejaaz: 94%. And every single cloud business, AWS and Google Cloud reported revenue 9 00:00:34,400 --> 00:00:40,400 Ejaaz: increase average of 50%, with Google having back orders of half a trillion dollars 10 00:00:40,400 --> 00:00:42,160 Ejaaz: worth of compute orders. 11 00:00:42,660 --> 00:00:47,340 Ejaaz: Even Meta, who's categorically been behind in the AI race, reported massive 12 00:00:47,340 --> 00:00:50,820 Ejaaz: growth in revenue for their ad business thanks to AI. 13 00:00:50,980 --> 00:00:55,120 Ejaaz: In fact, it's so good that they're beating Google at their own business of search advertising. 14 00:00:55,400 --> 00:01:00,240 Ejaaz: For two years, AI critics have constantly been saying that we are in an AI bubble. 15 00:01:00,380 --> 00:01:02,940 Ejaaz: They're saying the house of cards is going to come down, that we're spending 16 00:01:02,940 --> 00:01:06,620 Ejaaz: too much. The earnings reports of yesterday proved the exact opposite. 17 00:01:06,880 --> 00:01:10,140 Ejaaz: All these companies that are spending hundreds of billions of dollars are actually 18 00:01:10,140 --> 00:01:12,380 Ejaaz: making more money than they ever did before. 19 00:01:12,600 --> 00:01:16,320 Josh: So are we in a bubble? The answer to that question is probably unequivocally yes. 20 00:01:16,600 --> 00:01:20,640 Josh: I think we are to some extent, but what is the size of that bubble? 21 00:01:21,460 --> 00:01:24,400 Josh: Chances are it's much smaller than i think a lot of people think and how 22 00:01:24,400 --> 00:01:27,700 Josh: much runway is left well i think a lot more than people anticipate and 23 00:01:27,700 --> 00:01:30,900 Josh: we could start with google because that's what you're mentioning a lot i mean their earnings 24 00:01:30,900 --> 00:01:33,680 Josh: report showed we got to start with the capex number so for those 25 00:01:33,680 --> 00:01:36,980 Josh: who aren't familiar with capex capex is the capital expenditure the amount of 26 00:01:36,980 --> 00:01:41,400 Josh: money that a company is going to spend over the next x period of time now for 27 00:01:41,400 --> 00:01:45,800 Josh: google they've provided capex for their next calendar year and they guided even 28 00:01:45,800 --> 00:01:51,040 Josh: higher than they did previously at $180 to $190 billion. 29 00:01:51,920 --> 00:01:56,940 Josh: This is a tremendous amount of money, like a stupid, crazy amount of money. 30 00:01:57,440 --> 00:02:01,520 Josh: Their revenue, for reference, $110 billion, is more than Coca-Cola's annual 31 00:02:01,520 --> 00:02:03,880 Josh: revenue. And this is what they did in a single quarter. 32 00:02:04,080 --> 00:02:08,480 Josh: One of the most kind of worried about and concerned about categories, Google search. 33 00:02:08,620 --> 00:02:11,280 Josh: I mean, I remember a few months ago, very vividly, we were on the show 34 00:02:11,280 --> 00:02:14,360 Josh: talking about Google search and whether or not it's going to be a viable business 35 00:02:14,360 --> 00:02:18,740 Josh: is the chatbot llm interface going to cannibalize google search the answer now 36 00:02:18,740 --> 00:02:26,620 Josh: is an unequivocal no google search grew 20 to 60 billion dollars which is again 37 00:02:26,620 --> 00:02:30,920 Josh: just a huge amount of money and i think that the headline here is that 38 00:02:31,490 --> 00:02:36,170 Josh: Capital expenditure is going up, meaning the money is going to be spent on building 39 00:02:36,170 --> 00:02:40,150 Josh: out the infrastructure required to scale AI at the same time that they're actually 40 00:02:40,150 --> 00:02:45,530 Josh: generating a lot more profits from their services like Google search and Google cloud. 41 00:02:45,670 --> 00:02:47,970 Josh: I think one of the themes we're going to notice as we cover these earnings reports 42 00:02:47,970 --> 00:02:51,490 Josh: is that cloud revenue is kind of the bread and butter of a lot of these companies. 43 00:02:51,550 --> 00:02:53,590 Josh: And it's accelerating very quick. 44 00:02:53,730 --> 00:02:57,970 Josh: I mean, for their projected guidance on their cloud revenue that they're going 45 00:02:57,970 --> 00:03:01,430 Josh: to make next year, they doubled it to about $460 billion. 46 00:03:01,730 --> 00:03:06,430 Josh: And for reference, that's larger than the GDP of Belgium and roughly equivalent 47 00:03:06,430 --> 00:03:10,850 Josh: to two of Walmart's annual revenues just in cloud search alone. 48 00:03:11,010 --> 00:03:12,750 Josh: So the Google numbers are incredible. 49 00:03:13,010 --> 00:03:16,970 Josh: The one thing that really sent me for a loop in terms of how I kind of calculate 50 00:03:16,970 --> 00:03:22,110 Josh: the guidance of where we are in this AI bubble is a line that Sundar said in the earnings report, 51 00:03:22,430 --> 00:03:28,770 Josh: CEO of Google, who said their 2027 CapEx will significantly increase Yes. 52 00:03:29,370 --> 00:03:33,030 Josh: In 2027, next year, compared to this, which is already a record. 53 00:03:33,190 --> 00:03:37,770 Josh: So they are really guiding towards a very strong 2026, a strong 2027. 54 00:03:37,770 --> 00:03:41,550 Josh: And that was one of four that really made a pretty big impact on the market. 55 00:03:41,770 --> 00:03:45,250 Ejaaz: Well, I just want to tell a slightly different story on the Google side, 56 00:03:45,350 --> 00:03:49,770 Ejaaz: because really, it's that cloud business that absolutely killed it. 57 00:03:49,910 --> 00:03:54,090 Ejaaz: They made $20 billion in the last three months for guidance here, 58 00:03:54,250 --> 00:03:58,650 Ejaaz: that's around 63% more than they did this same time last year. 59 00:03:58,770 --> 00:04:01,490 Ejaaz: So it's a massive jump up. But then you might be wondering, well, 60 00:04:01,990 --> 00:04:05,030 Ejaaz: how amazing is this? How substantial is this? 61 00:04:05,270 --> 00:04:08,890 Ejaaz: The projections that you just mentioned, the half a trillion dollars, 62 00:04:09,010 --> 00:04:14,030 Ejaaz: so it's actually $462 billion, I believe, is already locked in orders. 63 00:04:14,290 --> 00:04:17,510 Ejaaz: It's not a projection. These are orders that they already have on the backlog. 64 00:04:17,690 --> 00:04:21,290 Ejaaz: And people are waiting for this to happen. In fact, I have a neat little graphic, 65 00:04:21,490 --> 00:04:24,430 Ejaaz: which shows this because this caption goes, this is so crazy, 66 00:04:24,630 --> 00:04:25,950 Ejaaz: it literally looks fake. 67 00:04:26,210 --> 00:04:30,850 Ejaaz: And it shows you the back orders, $460 billion just for Google Cloud alone. 68 00:04:30,970 --> 00:04:36,590 Ejaaz: This is one of like eight different major business units that feed into the Google profit funnel. 69 00:04:36,730 --> 00:04:40,170 Ejaaz: So I just want to emphasize that. Now, Sundar also said on the call, 70 00:04:40,350 --> 00:04:44,830 Ejaaz: we, and I'm quoting this, we are compute constrained in the near term. 71 00:04:45,130 --> 00:04:49,230 Ejaaz: Our cloud revenue would have actually been higher if we were able to meet the 72 00:04:49,230 --> 00:04:53,870 Ejaaz: demand. So the point is, they don't have enough supply TPUs and infrastructure, 73 00:04:54,190 --> 00:04:57,250 Ejaaz: which is, by the way, Google Cloud is one of the biggest cloud providers in the entire world. 74 00:04:57,350 --> 00:05:00,230 Ejaaz: I think they're like second to AWS, Amazon, which is the biggest one, 75 00:05:00,350 --> 00:05:01,310 Ejaaz: which we'll talk about in a second. 76 00:05:01,650 --> 00:05:05,070 Ejaaz: They can't supply enough. Google is like one of the biggest hyperscalers that 77 00:05:05,070 --> 00:05:08,190 Ejaaz: are out there, and even they can't meet demand. So the point is... 78 00:05:09,080 --> 00:05:14,200 Ejaaz: The criticism that we're faced around AI bubbles is we're investing in all this AI capex. 79 00:05:14,380 --> 00:05:18,800 Ejaaz: Google alone is investing, I think, $150 to $200 billion this year to create 80 00:05:18,800 --> 00:05:21,860 Ejaaz: more TPUs and AI infrastructure to supply the demand. 81 00:05:22,080 --> 00:05:26,020 Ejaaz: The skepticism has been that there is no demand for this. No one's willing to pay for this. 82 00:05:26,460 --> 00:05:29,660 Ejaaz: These quarterly earnings prove that categorically incorrect. 83 00:05:29,920 --> 00:05:32,000 Ejaaz: And we have a half a trillion dollar backlog. 84 00:05:32,440 --> 00:05:35,140 Josh: Yeah, there's no way that the spending is going to slow down. 85 00:05:35,280 --> 00:05:38,160 Josh: And the fact that the only constraint that they had was compute, 86 00:05:38,320 --> 00:05:41,860 Josh: not demand, given the profit margins that they already have is pretty telling. 87 00:05:42,080 --> 00:05:46,320 Josh: I found one funny fact about this is that a lot of the revenue actually came 88 00:05:46,320 --> 00:05:49,240 Josh: from their private investments getting marked up. 89 00:05:49,360 --> 00:05:55,680 Josh: So of their total net income of $62 billion, 37 of it was unrealized gains on 90 00:05:55,680 --> 00:05:58,320 Josh: equity securities that includes companies like SpaceX and Anthropic. 91 00:05:58,540 --> 00:06:02,060 Josh: You mentioned the largest cloud provider, Amazon, who also reported yesterday. 92 00:06:02,060 --> 00:06:07,720 Josh: They have a similar thing where I think of their net income of $30 billion, 93 00:06:08,540 --> 00:06:12,080 Josh: 16.8 of it was their pre-tax gains on Anthropic shares. 94 00:06:12,320 --> 00:06:16,780 Josh: So this is very much a circular economy where like they're investing in Anthropic, 95 00:06:16,960 --> 00:06:20,800 Josh: the Anthropic valuation is rising, a large percent of the net income becomes 96 00:06:20,800 --> 00:06:22,440 Josh: Anthropic, becomes SpaceX. 97 00:06:22,700 --> 00:06:25,760 Josh: So earning season when those IPO is going to be pretty crazy, 98 00:06:25,900 --> 00:06:27,240 Josh: but we have to talk about Amazon. 99 00:06:27,440 --> 00:06:32,940 Josh: Their AWS services is up 28%, which is their fastest growth they said in 15 100 00:06:32,940 --> 00:06:36,900 Josh: quarters that's 150 billion dollar run rate to put that in context that's larger 101 00:06:36,900 --> 00:06:41,480 Josh: than the entire annual revenue of disney netflix and spotify combined 102 00:06:42,220 --> 00:06:46,900 Josh: And that's AWS alone. It's bigger than the entire global movie industry at a 103 00:06:46,900 --> 00:06:50,560 Josh: margin of almost 40%. So again, this is the same story we heard with Google. 104 00:06:50,920 --> 00:06:54,420 Josh: Their cloud is really just constrained by compute. Their margins are high. 105 00:06:54,560 --> 00:06:56,720 Josh: They have more demand than they ever had before. 106 00:06:56,980 --> 00:07:01,300 Josh: And now we're seeing them move into building their own chips and working with other companies. 107 00:07:01,480 --> 00:07:04,900 Josh: And now that OpenAI is not locked in with Microsoft, we're seeing them start 108 00:07:04,900 --> 00:07:07,440 Josh: to serve OpenAI infrastructure as well through their bedrock. 109 00:07:07,580 --> 00:07:09,960 Josh: It's a really impressive range report from Amazon as well. 110 00:07:09,960 --> 00:07:13,200 Ejaaz: There's been a trend shift with Amazon in particular. 111 00:07:13,440 --> 00:07:16,800 Ejaaz: Now, if you talk to an average person about Amazon a few years ago, 112 00:07:16,900 --> 00:07:20,920 Ejaaz: they'd be like, oh, yeah, it's that e-commerce company. It's where I order my toilet paper from. 113 00:07:21,320 --> 00:07:26,600 Ejaaz: Amazon has undergone a very categorical shift into the compute infrastructure 114 00:07:26,600 --> 00:07:28,260 Ejaaz: and distribution service. 115 00:07:28,380 --> 00:07:31,400 Ejaaz: Now, that sounds like a lot of buzz terms. Let me explain what that means. 116 00:07:31,800 --> 00:07:36,200 Ejaaz: AWS is basically the bedrock for any internet company that exists today. 117 00:07:36,200 --> 00:07:41,760 Ejaaz: If it runs online, it's most likely running off of Amazon's AWS servers. 118 00:07:42,020 --> 00:07:45,900 Ejaaz: And so what that means is, okay, you can run a website, you can service all 119 00:07:45,900 --> 00:07:48,100 Ejaaz: the requests that you have from people trying to buy stuff from you. 120 00:07:48,240 --> 00:07:51,620 Ejaaz: But with this recent AI shift, Amazon looked at it and thought, huh. 121 00:07:52,220 --> 00:07:56,820 Ejaaz: This looks really similar. We could be the distributor and infrastructure providers for AI. 122 00:07:56,980 --> 00:08:01,140 Ejaaz: And guess what they already had? A bedrock of customers that already had that. 123 00:08:01,360 --> 00:08:04,560 Ejaaz: And I use bedrock very specifically, by the way, because their main AI part 124 00:08:04,560 --> 00:08:09,400 Ejaaz: is literally pun very much intended, was called or is called Amazon Bedrock. 125 00:08:09,520 --> 00:08:14,240 Ejaaz: And just over the last week, they now officially are going to be the main distributor 126 00:08:14,240 --> 00:08:16,500 Ejaaz: for OpenAI's chat GPT models. 127 00:08:16,620 --> 00:08:22,320 Ejaaz: Now, the reason why that's a big thing is because Microsoft was the sole cloud provider for OpenAI. 128 00:08:22,520 --> 00:08:26,960 Ejaaz: But this week, that contract broke, which meant that OpenAI can now serve their 129 00:08:26,960 --> 00:08:28,400 Ejaaz: models through whatever distributor they want. 130 00:08:28,520 --> 00:08:32,520 Ejaaz: And the first door that they were knocking on was Andy Jassy at Amazon saying, 131 00:08:32,660 --> 00:08:34,660 Ejaaz: hey, we would love to be the main provider. Why? 132 00:08:34,820 --> 00:08:38,320 Ejaaz: Because Amazon has connections to all the enterprise companies. 133 00:08:38,480 --> 00:08:42,500 Ejaaz: They service all the government's AI requests and all the Fortune 500 companies' AI requests. 134 00:08:42,600 --> 00:08:45,720 Ejaaz: They run all the servers. No one wants to pick the model. No one wants to set 135 00:08:45,720 --> 00:08:49,640 Ejaaz: up the dev environment. AWS has got you and they are creating a crazy business 136 00:08:49,640 --> 00:08:51,760 Ejaaz: for this. Like you mentioned, 28% growth. 137 00:08:51,900 --> 00:08:54,240 Ejaaz: That's almost $40 billion they've made over the last three months. 138 00:08:54,360 --> 00:08:57,340 Ejaaz: The fastest growth in the last four years. 139 00:08:57,460 --> 00:09:01,000 Ejaaz: That is not an anomaly because in Q4, we were saying the same thing when we 140 00:09:01,000 --> 00:09:02,580 Ejaaz: were reporting on their earnings as well. 141 00:09:02,820 --> 00:09:06,400 Ejaaz: And it's good to see that the market is now finally starting to understand that. 142 00:09:06,540 --> 00:09:09,420 Ejaaz: And they, this week, actually breached their all-time highs. 143 00:09:09,600 --> 00:09:13,280 Ejaaz: I think it breached over $260 price per share, which is insane. 144 00:09:13,520 --> 00:09:16,760 Ejaaz: And the final point I want to make about Amazon and Google, actually, 145 00:09:16,980 --> 00:09:18,560 Ejaaz: is there's a common theme. 146 00:09:18,860 --> 00:09:24,240 Ejaaz: Now, if you look at total revenue earned by both of these companies, it's increased... 147 00:09:24,740 --> 00:09:28,200 Ejaaz: By a decent amount, but not like mind-blowing amounts. 148 00:09:28,340 --> 00:09:32,220 Ejaaz: Where you need to look is the profit margins that both of these companies have 149 00:09:32,220 --> 00:09:33,180 Ejaaz: made over the last three months. 150 00:09:33,300 --> 00:09:39,320 Ejaaz: That has expanded on average by around 50%. I wanna reemphasize that point. 151 00:09:39,520 --> 00:09:44,640 Ejaaz: 50% for their cloud businesses, which means that AI chips, which is what both 152 00:09:44,640 --> 00:09:49,760 Ejaaz: Google and Amazon provide, and their cloud services allows them to eat more 153 00:09:49,760 --> 00:09:53,220 Ejaaz: profit on the margins, which is very good if you're any kind of a shareholder 154 00:09:53,220 --> 00:09:54,140 Ejaaz: of either of these companies. 155 00:09:54,660 --> 00:09:58,320 Josh: Yeah. And the pricing elasticity is very high too. It's not like they are out 156 00:09:58,320 --> 00:09:59,820 Josh: of customers. They just don't have the compute. 157 00:09:59,980 --> 00:10:03,040 Josh: So theoretically they could raise these prices, increase those margins quite 158 00:10:03,040 --> 00:10:05,020 Josh: a bit. And people will still continue to pay. 159 00:10:05,140 --> 00:10:09,240 Josh: Like I know for a fact, like someone like open AI can double the cost to serve it. 160 00:10:09,460 --> 00:10:12,460 Josh: And Amazon could forward that onto the customer. People would still pay. 161 00:10:12,640 --> 00:10:15,660 Josh: And Amazon's CapEx, again, at $200 billion. 162 00:10:16,020 --> 00:10:19,120 Josh: To put that into perspective, it's larger than the entire annual 163 00:10:19,120 --> 00:10:22,440 Josh: CapEx of the US oil and gas industry 164 00:10:22,440 --> 00:10:25,260 Josh: like this is a huge amount of money 165 00:10:25,260 --> 00:10:28,140 Josh: and then we have one other quote from the earnings report 166 00:10:28,140 --> 00:10:30,860 Josh: which i thought was was fun it was uh andy jassy 167 00:10:30,860 --> 00:10:34,240 Josh: talking about the combination of their industry-leading price 168 00:10:34,240 --> 00:10:37,440 Josh: performance tranium custom silicon market leading 169 00:10:37,440 --> 00:10:40,840 Josh: gravitons cpus and their core aws he's 170 00:10:40,840 --> 00:10:43,960 Josh: basically describing as a once-in-a-lifetime opportunity he said amazon and 171 00:10:43,960 --> 00:10:47,040 Josh: his shareholders will be very well off in the future as amazon 172 00:10:47,040 --> 00:10:50,180 Josh: crossed a new all-time high so it's very exciting 173 00:10:50,180 --> 00:10:53,020 Josh: to see all of these numbers go up and we don't even we didn't 174 00:10:53,020 --> 00:10:55,680 Josh: even talk about their logistics business like the part of 175 00:10:55,680 --> 00:10:58,820 Josh: amazon that we interact with on a daily basis when you order groceries or order 176 00:10:58,820 --> 00:11:01,960 Josh: things from amazon it's just an unbelievable business there's like 10 different 177 00:11:01,960 --> 00:11:06,200 Josh: businesses and i think that's the theme of a lot of these larger mega cap companies 178 00:11:06,200 --> 00:11:09,300 Josh: is as they take as they have their cash flow coming in they're going to spend 179 00:11:09,300 --> 00:11:12,200 Josh: it efficiently and they're going to increase their margins elsewhere what an 180 00:11:12,200 --> 00:11:13,620 Josh: incredible business well well 181 00:11:13,620 --> 00:11:16,900 Ejaaz: Let's speak about the cash flow for a second because we sound very rosy right 182 00:11:16,900 --> 00:11:19,260 Ejaaz: now and that it's like the best companies in the world. Now, 183 00:11:19,440 --> 00:11:20,760 Ejaaz: I want to point out two things. 184 00:11:21,200 --> 00:11:29,800 Ejaaz: As of the end of Q1, Amazon has now spent around or committed to spending 94% of their free cash flow. 185 00:11:30,040 --> 00:11:33,940 Ejaaz: We're talking about like money that they have available coming in through operating 186 00:11:33,940 --> 00:11:37,120 Ejaaz: income and through money that they have on the cash balance sheet. 187 00:11:37,300 --> 00:11:41,120 Ejaaz: Out of the four companies that we're speaking about today, they are the most 188 00:11:41,120 --> 00:11:43,800 Ejaaz: aggressive spenders on AI infra. 189 00:11:44,080 --> 00:11:48,640 Ejaaz: And the bet that Andy Jassy, the CEO, was making was, we're doing this intentionally 190 00:11:48,640 --> 00:11:52,580 Ejaaz: because we know for a fact that we're going to make money from this. 191 00:11:53,020 --> 00:11:57,960 Ejaaz: And the projections or the reported earnings from Q1 has proven that exact point, 192 00:11:58,060 --> 00:12:00,100 Ejaaz: but it's still a very aggressive maneuver, right? 193 00:12:00,180 --> 00:12:04,480 Ejaaz: Like as of the next three months, you could argue that either if they don't 194 00:12:04,480 --> 00:12:07,860 Ejaaz: have enough money or they run into some kind of hurdle, they might need to start 195 00:12:07,860 --> 00:12:10,080 Ejaaz: having debt financing and start borrowing money. 196 00:12:10,220 --> 00:12:13,580 Ejaaz: Now, as of today that we're speaking about and reported on these earnings, 197 00:12:14,040 --> 00:12:15,520 Ejaaz: they aren't in a levered position. 198 00:12:15,700 --> 00:12:19,640 Ejaaz: So for everyone saying that we're in an AI bubble, an AI bubble by definition 199 00:12:19,640 --> 00:12:22,940 Ejaaz: means that these companies are levered up on their balance sheet. 200 00:12:23,360 --> 00:12:25,560 Ejaaz: Neither of the companies that we're talking about today, Google, 201 00:12:25,680 --> 00:12:28,640 Ejaaz: Amazon, and Meta and Microsoft, which we're about to, are levered. 202 00:12:28,960 --> 00:12:31,840 Ejaaz: So I disagree with your earlier point, Josh, because basically, 203 00:12:32,080 --> 00:12:35,500 Ejaaz: I don't think we're in a bubble yet. Big, big emphasis on yet. 204 00:12:35,640 --> 00:12:39,540 Josh: Well, I think we're definitely aligned on being bullish about where we are in 205 00:12:39,540 --> 00:12:43,500 Josh: this stage of the market, whatever it is, that there's a lot of runway left. 206 00:12:43,620 --> 00:12:46,340 Josh: But there's an interesting dynamic to that point around free cash flow, 207 00:12:46,440 --> 00:12:48,920 Josh: which is the money that basically is left over after all their expenses, 208 00:12:49,440 --> 00:12:50,440 Josh: A lot of that is flowing out. 209 00:12:50,540 --> 00:12:55,640 Josh: Like you mentioned, about 95% of Amazon's earnings, the free cash is flowing out. And this 210 00:12:56,020 --> 00:12:59,400 Josh: is kind of inverting what we've traditionally had in the markets. 211 00:12:59,520 --> 00:13:03,020 Josh: Generally, Amazon, Google, these companies have absorbed all of the cash and 212 00:13:03,020 --> 00:13:04,400 Josh: they have a tremendous amount of free cash flow. 213 00:13:04,660 --> 00:13:07,580 Josh: Now they're spending it. You're seeing a lot of money going out the door. 214 00:13:07,680 --> 00:13:10,280 Josh: The capex is between the four companies we're going to cover is what, 215 00:13:10,360 --> 00:13:12,000 Josh: 600, 700 billion dollars. 216 00:13:12,320 --> 00:13:15,820 Josh: The question is like, where is that money flowing to? Because the reality is 217 00:13:15,820 --> 00:13:20,740 Josh: that while cash flow is coming out of Amazon, it is finding its way into other companies as well. 218 00:13:20,840 --> 00:13:24,300 Josh: And we're starting to see this with companies like Bloom Energy, 219 00:13:24,540 --> 00:13:28,600 Josh: who we famously mentioned on the show a few months ago and then a few weeks 220 00:13:28,600 --> 00:13:32,680 Josh: ago and still have not filled large enough bags to see the upside of this, 221 00:13:32,780 --> 00:13:33,500 Josh: which is very frustrating. 222 00:13:33,600 --> 00:13:35,680 Josh: But Bloom Energy is up 1400% on 223 00:13:35,680 --> 00:13:38,780 Josh: the year. And this is one example of where that free cash flow is going. 224 00:13:39,060 --> 00:13:42,280 Josh: When companies are building, they're spending this capex, they need to create 225 00:13:42,280 --> 00:13:45,660 Josh: data centers, they need the shell, they need the energy, they need the chips. 226 00:13:46,020 --> 00:13:49,940 Josh: Bloom Energy is an energy part of that equation. And it's clearly captured a 227 00:13:49,940 --> 00:13:53,420 Josh: lot because it was just up 24% yesterday on huge earnings. 228 00:13:53,700 --> 00:13:58,000 Josh: And now Leopold, in the most recent 13F filing, he had a position of 875 million, 229 00:13:58,020 --> 00:14:00,340 Josh: is now in a position worth $2.7 billion. 230 00:14:00,860 --> 00:14:04,000 Josh: This is one example of the money. The other, I guess we have SanDisk that we 231 00:14:04,000 --> 00:14:04,920 Josh: should probably mention briefly. 232 00:14:05,200 --> 00:14:09,020 Josh: If you invested in SanDisk two years ago, you're up 30 times your money. 233 00:14:09,400 --> 00:14:13,680 Josh: Like 30X, every $1,000 you put in is $30,000. Why is that? 234 00:14:13,780 --> 00:14:16,660 Josh: Well, because one of the critical thresholds and something that we heard on 235 00:14:16,660 --> 00:14:20,220 Josh: all of the four earnings reports that we're gonna mention is that memory is 236 00:14:20,220 --> 00:14:21,660 Josh: a serious supply constraint. 237 00:14:22,290 --> 00:14:26,150 Josh: And the costs associated with that are going up and the companies are just absorbing that. 238 00:14:26,270 --> 00:14:31,710 Josh: I think it was maybe Amazon or Meta who added $25 billion in CapEx just for 239 00:14:31,710 --> 00:14:33,510 Josh: the increased cost of these goods. 240 00:14:33,750 --> 00:14:36,010 Josh: And companies like Sandisk are the ones that are absorbing those. 241 00:14:36,150 --> 00:14:40,290 Josh: So we're seeing for the first time in a while, the money flowing downhill from 242 00:14:40,290 --> 00:14:43,270 Josh: these like mega cap companies down into the core infrastructure. 243 00:14:43,410 --> 00:14:45,970 Josh: And I think that's an inversion that hasn't quite been priced in because it 244 00:14:45,970 --> 00:14:47,350 Josh: hasn't been that way in a really long time. 245 00:14:47,690 --> 00:14:51,530 Ejaaz: Exactly. And so the theme that we've spoken about for the companies so far, 246 00:14:51,630 --> 00:14:55,570 Ejaaz: Google and Amazon, has been very much on AI CapEx spending, on Google Cloud, 247 00:14:55,750 --> 00:15:00,690 Ejaaz: on Amazon Web Services, and whether there is customer demand for the infra. 248 00:15:01,010 --> 00:15:03,910 Ejaaz: Now, another company that we want to speak about today is Meta. 249 00:15:04,010 --> 00:15:07,610 Ejaaz: And in fact, they're the company that added an additional $35 or $25 billion 250 00:15:07,610 --> 00:15:09,970 Ejaaz: for CapEx to their CapEx spend this year. 251 00:15:10,290 --> 00:15:13,550 Ejaaz: They're playing in a bit of a different field. Like, Meta is, 252 00:15:14,010 --> 00:15:18,090 Ejaaz: for better or worse, a social media company, but they're really, 253 00:15:18,310 --> 00:15:20,950 Ejaaz: really good at making money from advertising. 254 00:15:21,210 --> 00:15:24,250 Ejaaz: And for the longest period of time, it's been Meta versus Google. 255 00:15:24,390 --> 00:15:28,910 Ejaaz: And Google has, quite frankly, always won. They're the doormat to the internet, 256 00:15:29,070 --> 00:15:30,550 Ejaaz: right? They have dominated search. 257 00:15:30,730 --> 00:15:34,050 Ejaaz: And Meta has come close, but never quite as close, right? 258 00:15:34,610 --> 00:15:38,090 Ejaaz: Except for the last three months where they started integrating AI, 259 00:15:38,590 --> 00:15:41,670 Ejaaz: specifically their newer models and Manus who they acquired for $2 billion, 260 00:15:41,950 --> 00:15:43,070 Ejaaz: which just got blocked by China. 261 00:15:43,210 --> 00:15:45,390 Ejaaz: And that's a whole other thing. You should go check out our episode that we 262 00:15:45,390 --> 00:15:47,170 Ejaaz: published earlier this week. 263 00:15:48,110 --> 00:15:55,590 Ejaaz: The point being is Meta started integrating AI and they started having higher AI search conversions. 264 00:15:55,910 --> 00:15:59,410 Ejaaz: Now, I need to make it very clear. SEO, search engine optimization, 265 00:15:59,550 --> 00:16:04,450 Ejaaz: is a huge business and companies and advertisers pay billions and billions of 266 00:16:04,450 --> 00:16:09,710 Ejaaz: dollars per year just to get access and put their product in front of the right profile of person. 267 00:16:10,170 --> 00:16:14,190 Ejaaz: Meta is pioneering the AI version of that. And we were kind of in the dark. 268 00:16:14,330 --> 00:16:16,950 Ejaaz: They were kind of behind on the AI race. They don't have a frontier model. 269 00:16:16,950 --> 00:16:19,870 Ejaaz: So we didn't know whether they could actually pull this off. 270 00:16:20,010 --> 00:16:21,710 Ejaaz: And the data has shown that they can. 271 00:16:21,850 --> 00:16:27,530 Ejaaz: They beat earnings per share by 53%, and their revenue is up 33% year over year, 272 00:16:27,650 --> 00:16:30,650 Ejaaz: which is just categorically very impressive. 273 00:16:30,850 --> 00:16:33,850 Ejaaz: And I think we're going to start to see more of these things happen with other 274 00:16:33,850 --> 00:16:36,890 Ejaaz: such companies, Google being the most obvious one, where everyone thought AI 275 00:16:36,890 --> 00:16:40,590 Ejaaz: was going to eat into their search revenue, and they're up 20% over the quarter. 276 00:16:40,790 --> 00:16:45,270 Ejaaz: So overall, I think Meta, and it's not just an AI CapEx infra thing. 277 00:16:45,270 --> 00:16:51,010 Ejaaz: It's also AI bleeding into every single other type of product category and also making them money. 278 00:16:51,130 --> 00:16:53,990 Ejaaz: So the demand for this thing, for this technology is insatiable. 279 00:16:54,230 --> 00:16:57,270 Ejaaz: And the lesson that I'm hearing from all these three companies that we've spoken 280 00:16:57,270 --> 00:17:00,310 Ejaaz: about so far is there's not enough compute to go around. 281 00:17:00,730 --> 00:17:03,490 Josh: Okay. So Ijoz, I'm hearing you say all these positive things about meta, 282 00:17:03,510 --> 00:17:07,390 Josh: and then I'm looking at the stock today and it's down 9%. So clearly there's 283 00:17:07,390 --> 00:17:10,490 Josh: a disconnect between the market and the numbers. And we've seen this before. 284 00:17:10,650 --> 00:17:12,770 Josh: People sell on the news, even when it's good sometimes. 285 00:17:12,950 --> 00:17:15,830 Josh: But do you have any ideas as to why this is happening? 286 00:17:16,510 --> 00:17:21,510 Ejaaz: I think Meta's been getting a lot of hate, justifiably, because they've made 287 00:17:21,510 --> 00:17:22,750 Ejaaz: a few different blunders. 288 00:17:23,270 --> 00:17:25,190 Ejaaz: We mentioned on a previous episode that Zuck has. 289 00:17:25,190 --> 00:17:25,750 Josh: Gone on an 290 00:17:25,750 --> 00:17:29,630 Ejaaz: Acquisition spree and barely any of them have paid off. And his most recent, 291 00:17:29,790 --> 00:17:32,510 Ejaaz: most successful one is now getting unwound and blocked by China. 292 00:17:32,690 --> 00:17:35,890 Ejaaz: So it's not a good streak for him in general. But I think the market reaction 293 00:17:35,890 --> 00:17:42,370 Ejaaz: is specifically because advertising in itself is more of a variable business 294 00:17:42,370 --> 00:17:45,410 Ejaaz: versus something as hard to find as compute. 295 00:17:45,550 --> 00:17:48,810 Ejaaz: You have recurring customers with compute, with AWS, with Google Cloud. 296 00:17:49,010 --> 00:17:52,230 Ejaaz: You have contracts that you sign, long-term contracts with these enterprises, 297 00:17:52,230 --> 00:17:54,230 Ejaaz: and you know they're going to keep coming back. With advertising, 298 00:17:54,450 --> 00:17:55,890 Ejaaz: it's kind of like, do you think Google. 299 00:17:55,890 --> 00:17:56,370 Josh: Is going to create 300 00:17:56,370 --> 00:17:59,570 Ejaaz: A better AI search optimization system next quarter? Maybe. 301 00:17:59,830 --> 00:18:03,030 Ejaaz: And I think the meta FUD is just oversold at this point. I think people are 302 00:18:03,030 --> 00:18:05,730 Ejaaz: looking at it as a social media company versus an advertising business. 303 00:18:05,870 --> 00:18:09,910 Ejaaz: And if I were a meta investor right now, I'd probably be adding on to my position. 304 00:18:10,550 --> 00:18:13,770 Josh: Yeah, it may be helpful for people to reconsider these companies because a lot 305 00:18:13,770 --> 00:18:17,210 Josh: of the times the way that they interface with these companies is through the consumer layer. 306 00:18:17,370 --> 00:18:20,610 Josh: It's like on Amazon, you're interfacing with their Amazon mobile app. 307 00:18:20,810 --> 00:18:23,730 Josh: On Meta, you're interfacing with Instagram or Facebook. But the reality is, 308 00:18:23,830 --> 00:18:27,730 Josh: is that there's huge businesses built on the backs of these that is far larger 309 00:18:27,730 --> 00:18:30,790 Josh: than the actual core business that you're interfacing with on a daily basis, 310 00:18:30,910 --> 00:18:34,110 Josh: which is interesting. Now, Meadow was perhaps the biggest loser today, 311 00:18:34,230 --> 00:18:35,170 Josh: just in terms of price performance. 312 00:18:35,390 --> 00:18:37,590 Josh: The second biggest loser was Microsoft. 313 00:18:37,930 --> 00:18:41,470 Josh: Now, Microsoft should surprise no one. They're having a little bit of a difficult 314 00:18:41,470 --> 00:18:46,190 Josh: time when it comes to kind of being at the forefront of AI, but not in terms 315 00:18:46,190 --> 00:18:47,990 Josh: of their cloud or their infrastructure. 316 00:18:48,270 --> 00:18:51,850 Josh: Because like everyone else, they have more demand than they know what to do with. 317 00:18:51,970 --> 00:18:55,350 Josh: They have incredibly high margins and they're doing really well, 318 00:18:55,570 --> 00:18:57,530 Josh: pretty much across the board. They generated great numbers. 319 00:18:57,950 --> 00:19:00,630 Josh: One of the things that I think surprised investors, perhaps the reason 320 00:19:00,630 --> 00:19:03,870 Josh: why it's down today is because this capex number it grew 321 00:19:03,870 --> 00:19:06,590 Josh: to 190 billion for the calendar year 322 00:19:06,590 --> 00:19:10,130 Josh: of 2026 and that includes 25 percent boost 323 00:19:10,130 --> 00:19:13,230 Josh: from previous estimates because of this higher component pricing 324 00:19:13,230 --> 00:19:16,970 Josh: now for reference for framing that's more than the gdp of greece it's more in 325 00:19:16,970 --> 00:19:21,130 Josh: the annual capex of boeing lockheed martin and general motors combined basically 326 00:19:21,130 --> 00:19:26,210 Josh: the entire defense industry so it's a tremendous amount of spending on a business 327 00:19:26,210 --> 00:19:29,770 Josh: that i think a lot of people are a little confused on They had some issues recently 328 00:19:29,770 --> 00:19:31,470 Josh: with the Microsoft and opening a restructuring. 329 00:19:31,550 --> 00:19:34,750 Josh: The partnership agreement that happened earlier this week, it sucks down a little 330 00:19:34,750 --> 00:19:38,590 Josh: bit, but it seems overall, as long as Microsoft is leaning into their cloud 331 00:19:38,590 --> 00:19:39,990 Josh: infrastructure, they're going to be okay. 332 00:19:40,450 --> 00:19:44,930 Ejaaz: Yeah, I think I relatively agree. Okay, so the reason why I say relatively, 333 00:19:45,430 --> 00:19:49,070 Ejaaz: their cloud business, Azure, is a beast. It's up 40%. 334 00:19:49,530 --> 00:19:54,030 Ejaaz: They're printing money. They're just not printing as much money versus their 335 00:19:54,030 --> 00:19:57,110 Ejaaz: competitors, which happened to release their same earnings report within the 336 00:19:57,110 --> 00:19:59,850 Ejaaz: same 90 minutes. window, right? So AWS, 337 00:20:00,650 --> 00:20:03,290 Ejaaz: blew them out the water. And they are like the biggest car business. 338 00:20:03,410 --> 00:20:05,590 Ejaaz: So if you're a smaller car business, such as Microsoft Azure, 339 00:20:05,770 --> 00:20:08,870 Ejaaz: you kind of want to be putting up bigger percentage increases. This wasn't the case. 340 00:20:09,250 --> 00:20:13,530 Ejaaz: Google Cloud also crushed them as well. So comparatively, if you were looking 341 00:20:13,530 --> 00:20:18,650 Ejaaz: at all three businesses, even though Microsoft's stat statistical increase is 342 00:20:18,650 --> 00:20:22,070 Ejaaz: better, you're probably going to want to buy Amazon and Google over this. 343 00:20:22,170 --> 00:20:23,850 Ejaaz: But that might also be an opportunity for you. 344 00:20:24,010 --> 00:20:27,530 Ejaaz: The other reason, and I want to put my bear hat on for a second with Microsoft. 345 00:20:28,090 --> 00:20:30,490 Ejaaz: Josh, what's the name of the AI leader at Microsoft? 346 00:20:31,290 --> 00:20:31,810 Josh: Copilot? 347 00:20:32,690 --> 00:20:36,710 Ejaaz: No, I mean the person that leads the AI team. Oh, I have no idea. 348 00:20:37,090 --> 00:20:38,670 Ejaaz: Exactly. That's my point. 349 00:20:38,710 --> 00:20:39,070 Josh: Not a clue. 350 00:20:39,190 --> 00:20:45,890 Ejaaz: So the leader of AI at Microsoft, I believe his name is Mustafa Saleman, 351 00:20:46,390 --> 00:20:51,610 Ejaaz: just has been sitting at the helm and not really delivering on the products that you would expect. 352 00:20:51,810 --> 00:20:56,270 Ejaaz: And like Anthropic, OpenAI, and even Google have been absolutely running circles 353 00:20:56,270 --> 00:21:00,910 Ejaaz: around them, right? So remember, Microsoft CoPilot and the OpenAI partnership 354 00:21:00,910 --> 00:21:03,770 Ejaaz: were the earliest partnerships that you could make. 355 00:21:04,110 --> 00:21:09,350 Ejaaz: Microsoft, best investor in the room here, put in $13 billion into OpenAI, 356 00:21:09,490 --> 00:21:14,570 Ejaaz: and it is currently worth $132 billion, 27% stake in OpenAI. 357 00:21:14,910 --> 00:21:19,910 Ejaaz: And even with that, what is it, a year and a half lead across any of the competitors, 358 00:21:20,170 --> 00:21:23,810 Ejaaz: they still couldn't figure out how to make CoPilot a really good AI assistant. 359 00:21:23,810 --> 00:21:27,110 Ejaaz: And the adoption rate for Copilot across all the enterprise customers, 360 00:21:27,250 --> 00:21:29,930 Ejaaz: which by the way, they already have in a contract. 361 00:21:30,130 --> 00:21:32,910 Ejaaz: People just didn't want to use it. They requested Claude. 362 00:21:33,130 --> 00:21:37,350 Ejaaz: They requested ChatGPT directly. And you know what Microsoft has done in response, 363 00:21:37,510 --> 00:21:39,270 Ejaaz: what Mustafa Salomon has done in response? 364 00:21:39,630 --> 00:21:42,390 Ejaaz: He's created Microsoft Features, 365 00:21:43,160 --> 00:21:47,700 Ejaaz: are backed by Claude and ChatGPT. And now their partnership is broken. 366 00:21:48,080 --> 00:21:51,280 Ejaaz: Microsoft still has control over the IP, but what happens when that IP runs 367 00:21:51,280 --> 00:21:53,960 Ejaaz: out in, what is it, three, four years time? 368 00:21:54,300 --> 00:21:56,920 Ejaaz: What are they going to do then? They won't be a forefront. And I think people 369 00:21:56,920 --> 00:22:00,620 Ejaaz: are projecting that bear case in the future and they're deciding just to go 370 00:22:00,620 --> 00:22:03,880 Ejaaz: with a safer option, which is Google or Amazon. That seems right. 371 00:22:04,020 --> 00:22:07,700 Josh: Yeah, Microsoft, they've really just kind of missed when it comes to adopting AI. 372 00:22:07,900 --> 00:22:10,520 Josh: There's another earnings report that I'm very excited about that by the time 373 00:22:10,520 --> 00:22:12,820 Josh: you're listening to this episode is out, which is Apple's. 374 00:22:13,160 --> 00:22:15,840 Josh: I think that's going to be interesting to see how they're starting to navigate 375 00:22:15,840 --> 00:22:19,040 Josh: this new paradigm shift where they're slowly moving into AI. 376 00:22:19,540 --> 00:22:22,440 Josh: I know WWDC is coming in June. Hopefully, we get Apple Intelligence. 377 00:22:22,720 --> 00:22:24,880 Josh: I mean, of all these companies, they're serving the infrastructure, 378 00:22:24,880 --> 00:22:28,440 Josh: but in terms of where that infrastructure is actually served, 379 00:22:28,680 --> 00:22:31,820 Josh: that's all on Apple devices. It's on all the MacBooks. It's on all the iPhones. 380 00:22:31,980 --> 00:22:35,600 Josh: So that's going to be really interesting to see. I see a hyperscaler cloud growth 381 00:22:35,600 --> 00:22:37,460 Josh: chart here. Do you want to talk about this for a sec? 382 00:22:37,600 --> 00:22:40,860 Ejaaz: No, I just wanted to like, as we round up this segment, because I know there's 383 00:22:40,860 --> 00:22:42,140 Ejaaz: like a lot of numbers here. 384 00:22:42,460 --> 00:22:45,920 Ejaaz: There's a lot of percentages that we're peddling here. This chart kind of like 385 00:22:45,920 --> 00:22:49,940 Ejaaz: lays it out pretty clearly what the thesis is and what has been proven in these earnings reports. 386 00:22:50,480 --> 00:22:53,940 Ejaaz: AI-related profit is up massively. 387 00:22:54,160 --> 00:22:58,880 Ejaaz: It largely comes out of infrastructure, margin, growth, and that specifically 388 00:22:58,880 --> 00:23:02,220 Ejaaz: has come out of cloud businesses specifically. 389 00:23:02,500 --> 00:23:05,580 Ejaaz: And who owns the biggest cloud businesses? It's Google, it's Amazon. 390 00:23:05,720 --> 00:23:09,820 Ejaaz: And even though it's their littlest brother, It's also Microsoft Azure. 391 00:23:10,000 --> 00:23:11,700 Ejaaz: And this chart I expect to see 392 00:23:11,700 --> 00:23:15,420 Ejaaz: go up and to the right over the next couple of years at the very least. 393 00:23:15,950 --> 00:23:18,690 Josh: And as long as there's free cash flow coming into these businesses, 394 00:23:19,030 --> 00:23:20,430 Josh: it's fine that they spend it. 395 00:23:20,650 --> 00:23:22,910 Josh: That money is going to find a home elsewhere and that's going to improve the 396 00:23:22,910 --> 00:23:26,290 Josh: whole market. So I think as we wrap this up, you look at the PE ratios, 397 00:23:26,370 --> 00:23:27,190 Josh: the price to earnings ratio. 398 00:23:27,290 --> 00:23:29,710 Josh: This is basically how expensive a company is. 399 00:23:30,090 --> 00:23:33,390 Josh: So price to earnings ratio, money comes in, a stock gets value. 400 00:23:33,750 --> 00:23:37,130 Josh: This is the multiple at which the premium of how expensive it is. 401 00:23:37,390 --> 00:23:42,970 Josh: So Meta is trading 16 times earnings. That means it's trading 16 times the forward's 402 00:23:42,970 --> 00:23:44,250 Josh: projected earnings of the company. 403 00:23:44,250 --> 00:23:47,290 Josh: On a relative basis that's pretty low we 404 00:23:47,290 --> 00:23:50,190 Josh: have a comp for the dot-com bubble peak the pe ratio has 405 00:23:50,190 --> 00:23:53,650 Josh: got fairly high microsoft set 73 times earnings 406 00:23:53,650 --> 00:23:56,550 Josh: relative to 25 where we are now cisco was 407 00:23:56,550 --> 00:24:01,430 Josh: over 200 times earnings and yahoo is over 800 times earnings now there are some 408 00:24:01,430 --> 00:24:05,350 Josh: early signs of this spacex being one of them when i think about its pe ratio 409 00:24:05,350 --> 00:24:09,270 Josh: i don't know what it is it's not public yet that's going to probably be close 410 00:24:09,270 --> 00:24:14,170 Josh: to the microsoft cisco level but in terms of these core businesses that are running. 411 00:24:14,330 --> 00:24:18,270 Josh: They're not priced very highly at all. This isn't bubble territory. 412 00:24:18,430 --> 00:24:22,270 Josh: They're not going into debt. They are not spending what they can't afford. 413 00:24:22,470 --> 00:24:25,690 Josh: They are just taking the revenue that they're earning from their customers and 414 00:24:25,690 --> 00:24:28,810 Josh: they're deploying it to grow their businesses even larger. 415 00:24:29,090 --> 00:24:32,510 Josh: So if you're asking, is there going to be a problem? 416 00:24:32,630 --> 00:24:37,350 Josh: Are there shortcomings in the market coming soon? The answer is, I mean, maybe not. 417 00:24:37,650 --> 00:24:41,230 Josh: Things can break. This is subject to change. I know there's a lot of underlying 418 00:24:41,230 --> 00:24:44,650 Josh: things that may change the narrative here, but as of now, things seem pretty 419 00:24:44,650 --> 00:24:46,450 Josh: solid and these earnest reports look awesome. 420 00:24:47,250 --> 00:24:50,930 Ejaaz: My answer to the bubble question is, we're not in a bubble right now. 421 00:24:51,070 --> 00:24:56,850 Ejaaz: As soon as these companies start taking a lot more debt and these P ratios skyrocket, then we are. 422 00:24:57,250 --> 00:25:01,350 Ejaaz: Listen, it might happen suddenly once SpaceX IPOs, once OpenAI IPOs and capital 423 00:25:01,350 --> 00:25:04,290 Ejaaz: gets sucked out of these companies, it remains to be seen. 424 00:25:04,410 --> 00:25:06,830 Ejaaz: But for now, theoretically, we are not there. 425 00:25:07,010 --> 00:25:10,430 Josh: But well, there's one thing. One last thing is like, so the thing that I'm looking 426 00:25:10,430 --> 00:25:14,090 Josh: at is, so long as that incremental dollar spent on compute is still valuable 427 00:25:14,090 --> 00:25:16,170 Josh: to the customer, then everything works. 428 00:25:16,350 --> 00:25:20,370 Josh: It's like as long as the end user is finding value from these AI tools and services 429 00:25:20,850 --> 00:25:23,670 Josh: and they're willing to pay for that, everything continues to work. 430 00:25:23,750 --> 00:25:27,070 Josh: It's once that train stops, once Claude starts to become dumb, 431 00:25:27,370 --> 00:25:30,670 Josh: once we run out of use cases for it, that's when we run into problems and we 432 00:25:30,670 --> 00:25:32,630 Josh: haven't got there yet. So I'm feeling optimistic. 433 00:25:32,810 --> 00:25:35,870 Ejaaz: It's really funny because you mentioned Claude, you mentioned ChatGBT. 434 00:25:36,150 --> 00:25:37,710 Ejaaz: Those are the two products. 435 00:25:38,450 --> 00:25:42,870 Ejaaz: Like if these two companies implode overnight, we are screwed. 436 00:25:43,110 --> 00:25:47,250 Ejaaz: But the good news is not just regular consumers like you and I, 437 00:25:47,410 --> 00:25:52,370 Ejaaz: but very high-powered enterprises that generate billions and billions of dollars 438 00:25:52,370 --> 00:25:55,610 Ejaaz: every single year, find deep value in these products, and they're embedding 439 00:25:55,610 --> 00:25:57,690 Ejaaz: it in every aspect of their business. 440 00:25:57,950 --> 00:26:03,730 Ejaaz: So for now, directionally, we're heading in what I would say is a positive direction for all of this. 441 00:26:03,850 --> 00:26:07,370 Ejaaz: I think that brings us to the end of the earnings. We have more to cover. 442 00:26:07,650 --> 00:26:09,550 Ejaaz: Let's switch contexts a bit. 443 00:26:09,850 --> 00:26:13,030 Ejaaz: So Josh, have you heard of something called Project Deal? Yeah. 444 00:26:13,430 --> 00:26:14,530 Ejaaz: No, never heard of it. 445 00:26:14,610 --> 00:26:14,930 Josh: Fill me in. 446 00:26:15,290 --> 00:26:19,450 Ejaaz: Okay, so our girl Olivia Moore does a very good job of summarizing an experiment 447 00:26:19,450 --> 00:26:22,410 Ejaaz: that the Anthropic team did for one week. 448 00:26:22,570 --> 00:26:26,650 Ejaaz: They said, we created a classified marketplace for our employees in San Francisco. 449 00:26:26,730 --> 00:26:28,750 Ejaaz: It's kind of like a Craigslist, but with a twist. 450 00:26:29,130 --> 00:26:34,430 Ejaaz: All the deals that were conducted by AI models were acting on behalf of employees. 451 00:26:34,530 --> 00:26:38,330 Ejaaz: So they spun up a bunch of AI agents, and you as a human couldn't list the item 452 00:26:38,330 --> 00:26:40,650 Ejaaz: that you wanted to sell. You couldn't write the description. 453 00:26:40,850 --> 00:26:44,250 Ejaaz: You couldn't pitch it. And you as a purchaser couldn't say, oh, 454 00:26:44,350 --> 00:26:45,110 Ejaaz: I don't like the look of that. 455 00:26:45,270 --> 00:26:48,990 Ejaaz: It had to be completely run autonomously by clawed AI agents. 456 00:26:49,090 --> 00:26:53,190 Ejaaz: So they ran this experiment for a week and did the human exchange by the end of it. 457 00:26:53,250 --> 00:26:58,990 Ejaaz: And it ended up generating $4,000 worth of purchases and sales across the entire platform. 458 00:26:59,050 --> 00:27:01,590 Ejaaz: And the customer feedback from the employees themselves were, 459 00:27:01,910 --> 00:27:03,770 Ejaaz: wow, I actually ended up with items that I really wanted. 460 00:27:03,970 --> 00:27:06,530 Ejaaz: Like if you were a purchaser, you gave your agent a wishlist. 461 00:27:06,670 --> 00:27:09,470 Ejaaz: And if you were a seller, you just listed an inventory of things that you had 462 00:27:09,470 --> 00:27:11,470 Ejaaz: in your apartment and the swap was done after a week. 463 00:27:11,630 --> 00:27:15,070 Ejaaz: I thought this was a pretty cool experiment for autonomously run businesses 464 00:27:15,070 --> 00:27:17,430 Ejaaz: or e-commerce specifically that could happen in the future. 465 00:27:17,790 --> 00:27:22,090 Josh: That's very cool. And also here's an answer to why the income will not stop 466 00:27:22,090 --> 00:27:26,850 Josh: anytime soon, because think about how many tokens this requires in terms of agentic capabilities. 467 00:27:27,110 --> 00:27:30,430 Josh: It's like, we started with the chatbots, you talk, it spits something out. 468 00:27:30,770 --> 00:27:33,970 Josh: That was like, okay, but it didn't use that much tokens. Then we had chain of 469 00:27:33,970 --> 00:27:37,670 Josh: thought where it actually generated tokens in order to create a better answer. 470 00:27:37,790 --> 00:27:40,410 Josh: And now we have agents that leverage not only chain of thought, 471 00:27:40,530 --> 00:27:42,710 Josh: but now are going off and performing all of these skill trees, 472 00:27:42,850 --> 00:27:43,950 Josh: burning tons of tokens. Yes. 473 00:27:44,230 --> 00:27:47,250 Josh: As this type of workflow becomes more powerful and delivers more value, 474 00:27:47,450 --> 00:27:50,510 Josh: the amount of tokens that are required to generate go vertical. 475 00:27:50,750 --> 00:27:53,710 Josh: And I think that's what we're seeing right now is not only is the demand for 476 00:27:53,710 --> 00:27:57,990 Josh: AI going up, the demand for tokens is going astronomical with it because of 477 00:27:57,990 --> 00:28:01,870 Josh: these workflows like this one, where I'm sure in order to get this done at this 478 00:28:01,870 --> 00:28:03,990 Josh: quality, you consumed a tremendous amount of tokens. 479 00:28:04,250 --> 00:28:06,590 Josh: And I think, again, this is probably another bullish use case. 480 00:28:06,710 --> 00:28:08,750 Josh: Now, we have more news as it relates to Cursor. 481 00:28:08,910 --> 00:28:12,830 Josh: Cursor releases their agent harness to the public. What's going on with Cursor? 482 00:28:12,830 --> 00:28:16,930 Ejaaz: Yeah, okay. So I need to pause for a second and eat some humble pie because 483 00:28:16,930 --> 00:28:20,770 Ejaaz: exactly a week and a half ago, I was crapping on Cursor. 484 00:28:20,850 --> 00:28:22,970 Ejaaz: I basically said that they have no moat. 485 00:28:23,090 --> 00:28:29,110 Ejaaz: They are, and I quote, an AI rapper that sits on top of the smarter models like Claude and Chad GPT. 486 00:28:29,630 --> 00:28:33,550 Ejaaz: And, you know, Anthropic and OpenAI can basically eat their lunch at any given moment. 487 00:28:34,010 --> 00:28:38,290 Ejaaz: I was wrong. So Cursor this week released a really cool product, 488 00:28:38,490 --> 00:28:41,170 Ejaaz: which was their AI Agent Harness. 489 00:28:41,310 --> 00:28:43,750 Ejaaz: Now, for those of you who don't know what an AI Agent Harness is, 490 00:28:43,910 --> 00:28:46,810 Ejaaz: you have the main model, but the model in itself is good. 491 00:28:46,930 --> 00:28:50,950 Ejaaz: But if you can mold it in a very specific way around a very particular use case, 492 00:28:51,030 --> 00:28:54,810 Ejaaz: so that includes a bunch of very heavily detailed prompts. 493 00:28:54,930 --> 00:28:58,330 Ejaaz: It includes setting up the right developer environment. 494 00:28:58,470 --> 00:29:02,910 Ejaaz: It includes plugging in the right APIs and orchestrating all these things in 495 00:29:02,910 --> 00:29:05,850 Ejaaz: a very meticulous way. That's known as the harness. 496 00:29:06,130 --> 00:29:09,670 Ejaaz: That has grown to be as valuable as the model itself. 497 00:29:09,790 --> 00:29:13,990 Ejaaz: In fact, there was an eval board that was put out this week because we had ChatGPT 498 00:29:13,990 --> 00:29:16,670 Ejaaz: 5.5 come out and we had Claude Opus 4.7 come out. 499 00:29:17,010 --> 00:29:21,450 Ejaaz: They tried adding the harness from Cursor on top of these models and guess what? 500 00:29:21,770 --> 00:29:25,470 Ejaaz: They performed better than the actual models themselves. So now companies are 501 00:29:25,470 --> 00:29:27,450 Ejaaz: like, well, I want this harness as well. 502 00:29:27,570 --> 00:29:32,810 Ejaaz: And in fact, Sam Altman himself said this week that the harness and the model are equivocal. 503 00:29:33,050 --> 00:29:37,030 Ejaaz: They're the same thing and are as valuable as each other. So Cursor decided 504 00:29:37,030 --> 00:29:39,110 Ejaaz: to do the insane thing, which is. 505 00:29:39,630 --> 00:29:42,930 Ejaaz: Release their harness as an API and charge people to sit on top of that. 506 00:29:43,090 --> 00:29:46,950 Ejaaz: So in an instant, overnight, they created this moat that sits on top of these 507 00:29:46,950 --> 00:29:51,070 Ejaaz: models, and they can now charge a premium for it. It was just a genius move by Cursor. 508 00:29:51,530 --> 00:29:54,730 Ejaaz: I'm kind of embarrassed that I didn't see it play out in this way myself, 509 00:29:54,730 --> 00:29:58,410 Ejaaz: but they basically have a product that they can sell that makes ChatGPT and 510 00:29:58,410 --> 00:30:01,590 Ejaaz: Claude 10x better than it already is today. And that's pretty cool. 511 00:30:01,930 --> 00:30:06,890 Josh: Well, you know who saw that is Elon and SpaceX XAI, which sounds like one of his children's names. 512 00:30:06,950 --> 00:30:10,070 Josh: It's a mouthful, but they acquired the option to purchase cursor 513 00:30:10,070 --> 00:30:13,270 Josh: what last week two weeks ago and imagine if that 514 00:30:13,270 --> 00:30:15,950 Josh: model wasn't anthropic it wasn't open ai 515 00:30:15,950 --> 00:30:18,610 Josh: but it was a grok model and now it can be 516 00:30:18,610 --> 00:30:21,850 Josh: 10 to 20 times better in a harness run by cursor i 517 00:30:21,850 --> 00:30:24,630 Josh: think that's probably what they're guiding towards so cursor seems now to be 518 00:30:24,630 --> 00:30:27,630 Josh: a very important company a very important puzzle piece 519 00:30:27,630 --> 00:30:30,650 Josh: and hopefully grok can take advantage of that when they either 520 00:30:30,650 --> 00:30:33,390 Josh: work together or come to the acquisition later this 521 00:30:33,390 --> 00:30:36,190 Josh: year now there is more news on the 522 00:30:36,190 --> 00:30:39,170 Josh: front of ai generated content this one 523 00:30:39,170 --> 00:30:42,470 Josh: being 11 labs now 11 labs for those who don't know is the 524 00:30:42,470 --> 00:30:45,910 Josh: kind of frontier leading edge of audio ai 525 00:30:45,910 --> 00:30:49,470 Josh: so that's things like ai voices voice cloning 526 00:30:49,470 --> 00:30:52,910 Josh: and just recently music production so 527 00:30:52,910 --> 00:30:55,650 Josh: they have a music platform website in which you can 528 00:30:55,650 --> 00:30:59,370 Josh: actually sign your voice up to be used for music 529 00:30:59,370 --> 00:31:02,170 Josh: generation and creation and they announced not only that 530 00:31:02,170 --> 00:31:07,290 Josh: they created this new platform but also that they've paid out 11 million dollars 531 00:31:07,290 --> 00:31:11,770 Josh: to creators through the 11 lives voice library so the question i asked myself 532 00:31:11,770 --> 00:31:14,890 Josh: and i asked each other before i recorded is why have we not signed up our voices 533 00:31:14,890 --> 00:31:18,530 Josh: for this creator program because my god 11 million dollars is a lot of money 534 00:31:18,530 --> 00:31:21,750 Josh: it seems like a lot of the pushback around music generation 535 00:31:22,740 --> 00:31:25,760 Josh: When it comes to ai in particular is that it's 536 00:31:25,760 --> 00:31:28,540 Josh: not real and it takes away from real artists and i 537 00:31:28,540 --> 00:31:31,440 Josh: think the reality is is that artists who publish on spotify make virtually 538 00:31:31,440 --> 00:31:34,100 Josh: no money you get almost zero dollars even if you get 539 00:31:34,100 --> 00:31:37,000 Josh: a billion plays whereas 11 labs they're paying out 11 million 540 00:31:37,000 --> 00:31:40,320 Josh: dollars to a very small set of creators because they can actually earn and 541 00:31:40,320 --> 00:31:43,980 Josh: participate in the upside of this ai generated music so in addition to the music 542 00:31:43,980 --> 00:31:48,780 Josh: being incredibly well produced in some cases it also creates this really interesting 543 00:31:48,780 --> 00:31:54,040 Josh: incentive economy around submitting your human vocals to be used for this music 544 00:31:54,040 --> 00:31:57,960 Josh: production we have some samples of music maybe we should take a sec yeah give 545 00:31:57,960 --> 00:31:59,180 Josh: it a listen go on josh pick 546 00:31:59,180 --> 00:32:00,200 Ejaaz: A pick a track. 547 00:32:00,200 --> 00:32:03,880 Josh: Let's see chrome candy sounds like fun okay here we go 548 00:32:13,370 --> 00:32:15,850 Josh: Okay, I do immediately regret that decision. 549 00:32:16,310 --> 00:32:20,330 Ejaaz: Okay, so out of all of that, I think we picked the most AI generated one. 550 00:32:20,530 --> 00:32:24,090 Ejaaz: I do immediately regret that decision. I promise you some of these are actually pretty good. 551 00:32:24,390 --> 00:32:27,270 Ejaaz: The thumbnail was a bit of a giveaway there. But yeah, to your point, 552 00:32:27,830 --> 00:32:29,670 Ejaaz: there's a few reasons why I like this product. 553 00:32:29,990 --> 00:32:34,830 Ejaaz: Number one, the biggest pushback from artists specifically against AI, 554 00:32:35,030 --> 00:32:39,670 Ejaaz: and rightly so, is this is killing our business. We aren't able to make money. 555 00:32:39,830 --> 00:32:43,590 Ejaaz: You're stealing our IP and just generating profits for free. 556 00:32:43,770 --> 00:32:49,710 Ejaaz: This platform not only recognizes your IP, but feeds profits and money back to you. 557 00:32:49,810 --> 00:32:52,970 Ejaaz: Now, typically in the music industry, it's very complicated. 558 00:32:52,970 --> 00:32:57,030 Ejaaz: You need to have your IP owner, record label, all this kind of stuff. 559 00:32:57,190 --> 00:32:59,690 Ejaaz: And it gets very contractually boring and tedious. 560 00:32:59,970 --> 00:33:04,630 Ejaaz: This is one singular platform that is traceable across the technology itself 561 00:33:04,630 --> 00:33:07,590 Ejaaz: that can license your voice for content that you haven't even created. 562 00:33:07,810 --> 00:33:11,370 Ejaaz: It could be someone else, you and I, Josh, that come up with an idea to leverage 563 00:33:11,370 --> 00:33:14,450 Ejaaz: someone's voice and create a banger tune that goes on to make millions of dollars. 564 00:33:14,710 --> 00:33:18,830 Ejaaz: And you see money come through that and it's in a transparent way through this platform. 565 00:33:19,030 --> 00:33:23,210 Ejaaz: So I think although this is a small infrastructure and platform right now, 566 00:33:23,370 --> 00:33:24,870 Ejaaz: this could grow to be something massive. 567 00:33:25,070 --> 00:33:28,490 Ejaaz: Imagine if Spotify used this infrastructure, you know, you'd end up with a bunch 568 00:33:28,490 --> 00:33:31,250 Ejaaz: more happy artists that end up making more money on average. 569 00:33:32,290 --> 00:33:35,110 Josh: Yeah it's pretty cool i like 11 labs i think they have an incredible 570 00:33:35,110 --> 00:33:38,150 Josh: platform i like this new take on music generation i hope it 571 00:33:38,150 --> 00:33:40,830 Josh: changes the sentiment around ai produced music how it can 572 00:33:40,830 --> 00:33:43,770 Josh: be an actual tool that empowers creator more than it destroys 573 00:33:43,770 --> 00:33:46,690 Josh: them uh we also have more news as it relates to 574 00:33:46,690 --> 00:33:49,450 Josh: claude releases now the month of claude is kind 575 00:33:49,450 --> 00:33:52,510 Josh: of over they slowed down on their daily releases but they did release something 576 00:33:52,510 --> 00:33:55,570 Josh: just yesterday that we found interesting which is a new 577 00:33:55,570 --> 00:33:58,690 Josh: series of connectors things like blender things like adobe 578 00:33:58,690 --> 00:34:02,570 Josh: creative cloud ableton which is a music production software canva 579 00:34:02,570 --> 00:34:05,310 Josh: sketchup a lot of new applications one of the most noteworthy ones 580 00:34:05,310 --> 00:34:08,110 Josh: was blender which for those who aren't familiar blender is 581 00:34:08,110 --> 00:34:11,050 Josh: a 3d modeling and rendering software that actually takes 582 00:34:11,050 --> 00:34:14,370 Josh: really complicated files for rendering things like if 583 00:34:14,370 --> 00:34:18,430 Josh: you ever wanted to produce a product it creates the 3d renderings of all the 584 00:34:18,430 --> 00:34:22,450 Josh: intricacies of something like a keyboard all the keys all the switches the housing 585 00:34:22,450 --> 00:34:27,030 Josh: for it and now it can work directly with claude i was really interested i wanted 586 00:34:27,030 --> 00:34:29,950 Josh: to check out the adobe creative cloud because i'm a huge fan of creative cloud 587 00:34:29,950 --> 00:34:31,710 Josh: and do a lot of work in that world. 588 00:34:32,170 --> 00:34:35,730 Josh: Unfortunately, it's only just Adobe for creativity. It's a pretty lame app. 589 00:34:35,930 --> 00:34:38,270 Josh: And then I started playing around with this more. And the reality is, 590 00:34:38,290 --> 00:34:41,550 Josh: is that it's very slow when it does all of these things. 591 00:34:41,690 --> 00:34:44,130 Josh: It takes a long time to think and work. And while it is powerful, 592 00:34:44,130 --> 00:34:48,790 Josh: it's just painstakingly slow to actually get outputs and engage with these tools 593 00:34:48,790 --> 00:34:51,670 Josh: right now. But it seems pretty interesting. 594 00:34:51,890 --> 00:34:56,050 Josh: I would hate for it to make a mistake on like a 10,000 part rendering of some 595 00:34:56,050 --> 00:34:59,310 Josh: complicated object and you don't know what it is. So it's high risk. 596 00:34:59,470 --> 00:35:01,350 Josh: Use at your own discretion. 597 00:35:01,730 --> 00:35:04,290 Josh: But I think it is noteworthy news for this week, at least. 598 00:35:04,890 --> 00:35:10,830 Ejaaz: Okay, so for the final topic, Josh, I have a nomination for the worst AI product ever created. 599 00:35:11,430 --> 00:35:15,650 Ejaaz: And I'm sad to say that it was created by one of the biggest companies that 600 00:35:15,650 --> 00:35:19,270 Ejaaz: we just spoke about on the earnings reports. So thank God this isn't the moneymaker. 601 00:35:19,650 --> 00:35:24,550 Ejaaz: So this is a new feature from Amazon, where when you go on their e-commerce 602 00:35:24,550 --> 00:35:27,430 Ejaaz: business, the Amazon platform where you order toilet paper, like I mentioned 603 00:35:27,430 --> 00:35:33,390 Ejaaz: earlier on, you now have a new AI feature which generates a podcast about the products. 604 00:35:34,360 --> 00:35:38,680 Ejaaz: Two AI hosts discuss the product that you're viewing and takes your questions 605 00:35:38,680 --> 00:35:40,920 Ejaaz: as if it's in a call-in show. 606 00:35:41,160 --> 00:35:46,020 Ejaaz: So just to be clear, you press the button, right? This is like a demo here. I'm not going to play it. 607 00:35:46,240 --> 00:35:51,080 Ejaaz: But like, you know, you're looking at, what is this? Home Care Pro Rapid Relief Rash Cream. 608 00:35:51,400 --> 00:35:55,460 Ejaaz: And you can generate two AIs that like talk about the product. 609 00:35:55,680 --> 00:35:58,960 Ejaaz: And if you have a question, you can type in the question and they answer it live. 610 00:35:59,100 --> 00:36:02,700 Ejaaz: So as you're scrolling through the page i don't know why you would want to use 611 00:36:02,700 --> 00:36:06,620 Ejaaz: this maybe i'm missing something i we are in the podcast game and even i hate 612 00:36:06,620 --> 00:36:11,220 Ejaaz: this product with a visceral amount of myself josh can you help me unpack this 613 00:36:11,220 --> 00:36:12,280 Ejaaz: like why would i want to use this. 614 00:36:12,280 --> 00:36:15,660 Josh: Is this even real this seems like they're trolling like 615 00:36:15,660 --> 00:36:19,160 Josh: is this even a real feature i'm like very skeptical but it's funny i mean previously 616 00:36:19,160 --> 00:36:23,100 Josh: notebook lm which is google's program they did this they allowed you to kind 617 00:36:23,100 --> 00:36:27,380 Josh: of insert any sort of research or idea into their program and then it would 618 00:36:27,380 --> 00:36:32,540 Josh: generate you a podcast this seems to be doing a live call in q a based on people's 619 00:36:32,540 --> 00:36:34,580 Josh: reviews and tough questions it's 620 00:36:35,160 --> 00:36:39,360 Josh: I guess if anything, it's a testament to the cost of content coming down to 621 00:36:39,360 --> 00:36:43,400 Josh: a level that is so marginal that Amazon is looking to implement it basically for free. 622 00:36:43,780 --> 00:36:46,320 Josh: Is this necessary? Probably not. Are people going to use this? 623 00:36:46,420 --> 00:36:48,300 Josh: Probably not. Is this real? I'm not even sure. 624 00:36:48,580 --> 00:36:51,460 Josh: If anything, it's a really compelling demo. But yeah, I found it really funny 625 00:36:51,460 --> 00:36:55,220 Josh: that, I mean, it's just a testament, again, to the cost of everything going 626 00:36:55,220 --> 00:36:59,020 Josh: down, the accessibility of AI and the AI-ification of everything. 627 00:36:59,400 --> 00:37:02,200 Josh: Not everything needs to have a podcast. Not everything needs AI. 628 00:37:02,640 --> 00:37:05,320 Josh: I don't know. Funny story to end on. but i think that is everything this was 629 00:37:05,320 --> 00:37:09,100 Josh: kind of long if you made it to the end yeah you've really you you've made it 630 00:37:09,100 --> 00:37:12,080 Josh: you're up to date you know all the things that matter this week we had a few 631 00:37:12,080 --> 00:37:15,300 Josh: other episodes this week that were pretty interesting if you missed one is on 632 00:37:15,300 --> 00:37:16,320 Josh: that china deal with meta 633 00:37:16,840 --> 00:37:19,760 Josh: one thing that wasn't covered in the earnings report is this meta 634 00:37:19,760 --> 00:37:22,540 Josh: and manis acquisition issue where china actually blocked it 635 00:37:22,540 --> 00:37:25,400 Josh: meanwhile the ceo of manis is a 636 00:37:25,400 --> 00:37:28,400 Josh: vice president of meta and working at the offices currently so it's 637 00:37:28,400 --> 00:37:31,200 Josh: a huge disaster we had an interview earlier this week where we spoke 638 00:37:31,200 --> 00:37:35,700 Josh: with the guy who is responsible for usvc an easy way that you can invest in 639 00:37:35,700 --> 00:37:38,860 Josh: anthropic spacex and open ai before it goes public that was pretty interesting 640 00:37:38,860 --> 00:37:42,700 Josh: and we also covered sam albin and elon musk's trial now we don't have any updates 641 00:37:42,700 --> 00:37:46,180 Josh: on that today we're going to be covering those in the coming weeks but yeah 642 00:37:46,180 --> 00:37:49,760 Josh: thank you guys so much for watching you guys any final thoughts before we leave them for the weekend 643 00:37:49,760 --> 00:37:53,940 Ejaaz: Oh no i think we've we've kept them here for a while but you are officially 644 00:37:53,940 --> 00:37:58,440 Ejaaz: caught up to date with everything and anything going on with ai from everything 645 00:37:58,440 --> 00:38:03,600 Ejaaz: from product releases to earnings reports to drama between Elon Musk and Sam 646 00:38:03,600 --> 00:38:05,960 Ejaaz: Altman. We do grudges. We do everything on this show. 647 00:38:06,180 --> 00:38:09,880 Ejaaz: So the point is we have extensive coverage. And if you aren't a subscriber, 648 00:38:10,140 --> 00:38:14,600 Ejaaz: if you haven't rated the show, even if you hate us, leave us a comment, give us a rating. 649 00:38:14,760 --> 00:38:16,940 Ejaaz: We would love to hear from you. It helps us out massively. 650 00:38:17,400 --> 00:38:20,540 Ejaaz: And yeah, we will see you next week on the next one. 651 00:38:20,880 --> 00:38:22,080 Josh: Thanks. Have a great weekend. See you guys.