Amazon Shareholders‼️ Major New Developments — Transcript

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1. 0:00Let's talk about some amazing on. And
2. 0:02then, you know what I'll do? I'll tell
3. 0:04you what my favorite mag seven stocks
4. 0:07are to buy right now. Like, what's my
5. 0:08favorite one? Which one's the best buy?
6. 0:11And then,
7. 0:13uh, which one's maybe I'm least
8. 0:14interested in.
9. 0:14>> to its aggressive AI spending plans. So,
10. 0:16that has not changed. The company
11. 0:18continuing to project
12. 0:19>> No, no, no. Let's do it right now. Let's
13. 0:20do it right now before we get into this
14. 0:22video. What's my
15. 0:24What's the best buy in mag seven right
16. 0:25now for a long-term investor? What's the
17. 0:28worst buy?
18. 0:29Uh, worst buy
19. 0:31Tesla. You know, Tesla least interesting
20. 0:34of the bunch by a large margin.
21. 0:37Uh, best I would say
22. 0:44It's tough. It's really tough right now
23. 0:47because valuations have gotten more
24. 0:49compelling.
25. 0:52I would say the most attractive risk
26. 0:55reward right now
27. 0:58is
28. 1:02[sighs]
29. 1:04I've got to give it to Amazon. It's
30. 1:09tough though. It's very tough because
31. 1:11there's a The close second right behind
32. 1:13it is Meta, and the close third behind
33. 1:16it is Google. Like, those companies are
34. 1:18like all three of them I think are are
35. 1:21really interesting buys. Google really
36. 1:23got my attention with this latest
37. 1:24quarterly results. Uh, you know, Wall
38. 1:27Street walked away from that very
39. 1:28negative. I walked away from those
40. 1:30results for Google feeling the best I
41. 1:33felt about Google in quite some time.
42. 1:34Obviously, it's a smaller position for
43. 1:36me in the public account, but I walked
44. 1:37away
45. 1:38I walked away from those results feeling
46. 1:40even better about Google than Meta and
47. 1:42Amazon. Right? And that doesn't mean I
48. 1:44feel bad about I mean, Meta Meta I kind
49. 1:46of feel a little bad about. That one's
50. 1:48just like the spend's out of control and
51. 1:50they just don't have the business lined
52. 1:53up to really generate these crazy growth
53. 1:56rates. Right? Um, we're hoping like Muse
54. 1:59can be something big but we don't have
55. 2:01any definitive proof.
56. 2:02With AWS, at least you got the growth
57. 2:04rates, right? Like they're putting up
58. 2:05the growth rates 39% they're talking
59. 2:08about 40% plus next year and the year
60. 2:10after. Like you you got something there,
61. 2:12right? Something real. Google, the
62. 2:15growth rates are insane for Google
63. 2:16Cloud.
64. 2:18100 and you know 3%
65. 2:21latest quarter like it's got the growth,
66. 2:23right? So
67. 2:24yeah, you know
68. 2:26outside of that Apple is not super
69. 2:29interesting. I don't think it's it's
70. 2:30horrible. I think Microsoft's actually a
71. 2:32pretty interesting buy. We ran
72. 2:33valuations on that. It probably I I
73. 2:36would say likely produces a teens
74. 2:40a teens
75. 2:42return per year for the next four or
76. 2:45five years.
77. 2:47So let's call something between like 13%
78. 2:49and maybe 19% returner. So that's good.
79. 2:51Solid. It should beat the market over
80. 2:53the next four years.
81. 2:56And then who else Nvidia is a decent
82. 2:59buy, but I don't love it here, you know.
83. 3:02I would still much rather be in AMD.
84. 3:04Like AMD has real potential to double
85. 3:06and triple in the next 24 months
86. 3:09to 36 months. AMD double and triple in
87. 3:12the next 36 months very unrealistic in
88. 3:13my opinion because we going to have
89. 3:15those much slower growth rates, you
90. 3:17know, starting at the end of next year
91. 3:18and then moving into future years. So
92. 3:21Okie dokie. Let's go ahead and react to
93. 3:23Wall Street.
94. 3:23>> The the the capital expenditures of $220
95. 3:26billion for the year. That's a forecast
96. 3:29that sent the shares lower and joining
97. 3:31us right now to break down some of those
98. 3:32numbers Mark Mahaney is Evercore head of
99. 3:34internet research. Good morning to you.
100. 3:38I wasn't that surprised by their
101. 3:40numbers, Mark, but I'm surprised that
102. 3:42the market's taken it the way it has
103. 3:44given maybe the way they reacted to some
104. 3:47of the Google numbers, but the Google
105. 3:48story's kind of different. What do you
106. 3:50think is going on here?
107. 3:52>> Well, I I think you're right. There is a
108. 3:53big difference between Google results
109. 3:55and the Meta results and these results,
110. 3:57but all three of them had pretty strong
111. 4:00negative market reactions. With Amazon
112. 4:02it's three things. The
113. 4:04the market wanted 40% plus, you know,
114. 4:07low 40s AWS growth, and it only got 39
115. 4:09%. It accelerated, but not by as much as
116. 4:12the market wanted. The market got 12% ad
117. 4:15revenue growth, and the market didn't
118. 4:17wanted something more like 18 19 %. So
119. 4:19that was a disappointment. And then the
120. 4:21cash flow came in worse than expected.
121. 4:23The Street was thinking maybe 10 billion
122. 4:25in negative free cash flow. It came in
123. 4:26at a record amount that was closer to
124. 4:29the 30 billion. I I think there answers
125. 4:31to all three of these. I I think this is
126. 4:33what's called a what I call an
127. 4:34expectations correction, not a
128. 4:35fundamentals correction. AWS revenue
129. 4:37growth accelerated for the sixth
130. 4:39straight quarter
131. 4:41in a row. And then they laid out these
132. 4:42goals for the next two years of 40% plus
133. 4:45AWS growth. At that scale, I think
134. 4:47that's really impressive, and the
135. 4:48margins were good at at AWS. Advertising
136. 4:51just had some comp issues, and they went
137. 4:52out of their way to kind of normalize
138. 4:54the ad revenue growth rate and pretty
139. 4:56strongly suggest it's going to get back
140. 4:58closer to 20% high teens in the next
141. 5:01quarter. And then the the the negative
142. 5:03record free cash flow, well, that's
143. 5:05because the CAPEX got pulled forward.
144. 5:07They didn't change the CAPEX for the
145. 5:08full year. It's just that it was a lot
146. 5:10heavier in Q3 than the Street had
147. 5:12expected, which actually means Q4 is
148. 5:14going to have positive free cash flow.
149. 5:16So, you know, look, this company is
150. 5:17still going through a major investment
151. 5:19cycle, but I I I look at this as an
152. 5:20overreaction. I like Amazon as a stock.
153. 5:23It's a
154. 5:24Yeah, it's a number one pick, and it's
155. 5:25my number one buy even here off the
156. 5:27correction. I didn't I don't like
157. 5:28corrections on my top picks, but, you
158. 5:30know, it's happened, and I understand
159. 5:32why. I just think they're answers to all
160. 5:34three of those main major concerns.
161. 5:36>> Okay, so 226 bucks, if we're sitting
162. 5:38here together a year from now, what do
163. 5:39you think it's worth?
164. 5:41>> Well, I think this thing gets back to
165. 5:43I think this thing gets back to doing
166. 5:45like 25 times earnings. I think what the
167. 5:46market needs to see are two or three
168. 5:48things. They need to see the we need to
169. 5:50see the end the light at the end of the
170. 5:51tunnel in terms of this free cash flow
171. 5:53hole that the company's going to go
172. 5:55through next year. I think it's going to
173. 5:56be about 50 billion in negative free
174. 5:58cash
175. 5:58>> This is where I think everybody's making
176. 5:59a big mistake. Big mistake with these
177. 6:02big tech companies, okay? Big mistake.
178. 6:05Listen.
179. 6:06Don't
180. 6:07assume like these companies to like just
181. 6:10their stocks are going to go crazy over
182. 6:11the next year, right? It's possible, but
183. 6:13I I wouldn't be super bullish on them
184. 6:15necessarily in the very short term,
185. 6:17meaning the next 6 to 12 months. Is it
186. 6:19possible Amazon, you know, over the next
187. 6:2012 months goes to 300 plus and Meta goes
188. 6:23to 900 and blah blah blah. It's
189. 6:25possible, but I'm just like they they
190. 6:27these companies do have a lot of
191. 6:28headwinds, right? They got the economy,
192. 6:30which the consumer's in a weaker spot.
193. 6:32We know that. Look at the consumer
194. 6:33sentiment, look at the company numbers.
195. 6:35We're just seeing a lot of weak numbers
196. 6:37across the board
197. 6:38for anything that's really dealing with
198. 6:39the consumer. The AI related stuff for
199. 6:41like business is spending is fine, but
200. 6:44anything consumer related looks weak
201. 6:45right now, very very weak, right?
202. 6:47So that's something to kind of keep in
203. 6:48mind there. And and and so
204. 6:53you know,
205. 6:54I would say
206. 6:56don't get your hopes up that these
207. 6:58stocks are going to go blasting higher
208. 7:00in the short term. Like I'm just like,
209. 7:02you know, like you really need to be
210. 7:04thinking about these sorts of companies
211. 7:05in a 5 year span. If you're thinking
212. 7:07about just over the next 12 months,
213. 7:09you're going to be set up for
214. 7:09disappointment.
215. 7:11Like I'm not getting my hopes up around
216. 7:13any of these stocks, Amazon, Meta,
217. 7:14Google, any of these big techs. I'm not
218. 7:17getting my The only one I would say I
219. 7:18have my hopes up on and that I think
220. 7:21could blast higher in the shorter term
221. 7:23is AMD, right? AMD. Outside of that, no.
222. 7:27>> Slow next year, but is if we can go
223. 7:29through next year and get some
224. 7:31confidence that that's the that's the
225. 7:32worst of the of the that that's the
226. 7:35trough of the free cash flow loss, then
227. 7:38and I think that's what's going to
228. 7:39happen. We'll probably know that, I
229. 7:40don't know, a quarter or two into the
230. 7:42year, then I think you'll get a real
231. 7:43unlock on the stock. Also I'm looking
232. 7:45for new product catalysts and there's
233. 7:47one coming. It's launching and that's
234. 7:48Project Leo, which is going to go
235. 7:50commercial by the end before the end of
236. 7:52this year. That'll also actually be very
237. 7:54beneficial for the P&L because they'll
238. 7:55start capitalizing some of those
239. 7:57manufacturing
240. 7:59expenses. So those are the those those
241. 8:01are the two things I'm really looking
242. 8:02for, but it's most important for I think
243. 8:04for investors is show me when uh can I
244. 8:06get confidence that the worst uh of the
245. 8:09the free cash flow losses is is behind
246. 8:11me?
247. 8:12>> Yeah, and Mark, really, it's the street
248. 8:14wants to to know that the capex that's
249. 8:16being spent right now does have a
250. 8:19a way to profitability. Last night on
251. 8:22the earnings call, Andy Jassy said that
252. 8:24he sees a clear line of sight to
253. 8:26profitability for all of this. Do you?
254. 8:30>> Uh yeah, and I think there's some
255. 8:31evidence right in the numbers. I mean,
256. 8:33the uh the margins at AWS are close to a
257. 8:3540% and if they can do they can keep
258. 8:37margins relatively close to where they
259. 8:39are today and grow 40% top line the next
260. 8:422 years, I mean, you're going to get uh
261. 8:44you're going to get back to substantial
262. 8:46free cash flow perhaps as early as 28
263. 8:49and very likely in 29. So yeah, I think
264. 8:52so. And then they also gave you a
265. 8:53backlog number. Their backlog grew 80
266. 8:56billion sequentially and there wasn't
267. 8:57any one deal in there. It was very
268. 8:59diverse set of um uh new deals that were
269. 9:02signed up. So I just think you have a
270. 9:03lot of visibility into demand and the
271. 9:06track record that they're showing with
272. 9:08their cloud business, the most important
273. 9:09one is showing rising margins. By the
274. 9:11way, as a company as a whole gave you
275. 9:13record operating margins last night and
276. 9:16I think those margins are going to
277. 9:17continue to move higher uh in the next
278. 9:19couple of years. You're at record
279. 9:20operating cash flow. So it's really a
280. 9:22matter of when the capex spend
281. 9:25>> Amazon stands for always abide, baby.
282. 9:29Hey, it's Jeremy. I hope you really
283. 9:30enjoyed that clip here today. What
284. 9:33you're looking at in front of you right
285. 9:34there, that's the six figure hall of
286. 9:37fame. Do you want to see the next one?
287. 9:39That's the seven figure hall of fame.
288. 9:42Now, that is my private group. Those are
289. 9:44members of my private group that have
290. 9:45scaled to six figures, multi six
291. 9:47figures, seven figures, multi seven
292. 9:49figures in their stock market portfolio.
293. 9:51They say you are the average of the five
294. 9:53people you associate with. If you're
295. 9:55somebody that is having trouble finding
296. 9:57other long-term investors that are
297. 9:59focused on building their wealth over
298. 10:01the coming years, finding like-minded
299. 10:02folks, look no further than my private
300. 10:04group. We got a tremendous amount of
301. 10:06people. We're consistently talking with
302. 10:08each other, learning from each other,
303. 10:10researching companies together, sharing
304. 10:12news about our different companies,
305. 10:14right? We do all that inside my private
306. 10:17group. If you would like to apply to
307. 10:19join us in there, go down to the
308. 10:21description area. There'll be an
309. 10:22application down there. You can click on
310. 10:24that and you can apply to join us in
311. 10:26there and take your game up to a much
312. 10:28higher level and associate with the type
313. 10:31of folks that you actually want to
314. 10:32associate with. Tom Lee.
315. 10:36>> In this cauldron.
316. 10:38Yeah, exactly. We got tricks on Friday
317. 10:41on mischief night. Overall though, and
318. 10:44and I don't know, you're not jumping up
319. 10:46and down like sometimes you do, but you
320. 10:48still think maybe 8,200 by the end of
321. 10:53this year.
322. 10:54You
323. 10:54you you want to say that or you want to
324. 10:57sort of say it or you want to say it
325. 10:58this way or
326. 11:00you you think it's going to happen?
327. 11:02>> Yeah, I think we are.
328. 11:03>> Okay.
329. 11:04>> I do think markets are going to exit the
330. 11:06year strong,
331. 11:07but they have been struggling, you know?
332. 11:09Like underneath the surface, it's been a
333. 11:11real battle and
334. 11:13I think everyone I speak to is nervous
335. 11:15about one of many things, right? The
336. 11:17war,
337. 11:18AI spending, the debt markets, the Fed,
338. 11:22inflation, midterms, and I think
339. 11:25the market's held up really well in the
340. 11:27face of all that. And as you know,
341. 11:28markets climb a wall of worry. So I
342. 11:30think if we get some clearing of any of
343. 11:33these things, then
344. 11:35we can really see money come off the
345. 11:36sidelines.
346. 11:38>> And just to get one of them out of the
347. 11:40way in terms of a clearing event, you
348. 11:41think the midterms will be a clearing
349. 11:43event? And
350. 11:45Donald Trump is not on well, he says
351. 11:47he's on the ballot. Maybe he is in in in
352. 11:49some ways, but he's not and he the veto
353. 11:51pen will be intact even if both
354. 11:54houses of Congress go
355. 11:57to the Democrats. So you still view that
356. 11:59as gridlock, which is not going to be
357. 12:01that much of a a surprise to the
358. 12:03markets.
359. 12:04>> Correct. I think markets in some ways
360. 12:06prefer gridlock because then you don't
361. 12:08have too much policy creep.
362. 12:10So the presidential vetoes is still very
363. 12:14I do think one thing that
364. 12:16investors are worried about is like data
365. 12:18centers if the Democrats take the Senate
366. 12:20and house.
367. 12:22But I I'm going to take the contrarian
368. 12:23view that
369. 12:25Democrat house Democrats will support AI
370. 12:29post midterms because it does bring
371. 12:31money to their communities. So I think
372. 12:32it's sort of a an important voting issue
373. 12:35today, but I think at the end of the day
374. 12:37it's good for jobs and it's good for the
375. 12:38economy.
376. 12:39>> Right. It definitely was a political
377. 12:41football for both
378. 12:43both parties. Do you
379. 12:44you have a you know
380. 12:47sort of a non-consensus you have a lot
381. 12:49of things.
382. 12:51Do you have a view on prediction
383. 12:52markets? Are they better than polls or
384. 12:54are they based on polls? Do do you think
385. 12:56there's any surprises, major surprises
386. 12:59possible on Tuesday or you think they
387. 13:01get it right this time?
388. 13:02>> One thing I'm wrestling with is in 2024
389. 13:05the prediction markets varied so much
390. 13:08from the polls.
391. 13:10They were in 2024 they showed Donald
392. 13:12Trump very strong
393. 13:14relative to the polls and I thought that
394. 13:16was a lot of signal.
395. 13:18But in this 2026 midterm the polls and
396. 13:22the prediction markets are almost the
397. 13:23same.
398. 13:24So I'm not sure they're generating
399. 13:26signal
400. 13:28on the margin
401. 13:29cuz they're both basically showing a
402. 13:31democratic sweep.
403. 13:33And that's why I think it'll be
404. 13:34interesting cuz I I think a lot of the
405. 13:36folks like that I know in Texas are
406. 13:38saying that Texas could be a surprise
407. 13:41where
408. 13:43you know maybe the Republicans fare
409. 13:45better than we expect. So I don't it's a
410. 13:47good question, but I I don't think it's
411. 13:49as much signal as it was in 2024.
412. 13:51>> Right.
413. 13:52Just the
414. 13:54I don't know how polls are conducted at
415. 13:56this point. Is it still on on mobile
416. 13:58phone?
417. 13:59>> Kind of wasting Tom Lee's time there in
418. 14:01my opinion. All my exes live in Texas
419. 14:03like I'm George Strait.
420. 14:05You know
421. 14:06I said what I said about the election
422. 14:08stuff like that's here today gone
423. 14:09tomorrow like you know market could
424. 14:11freak over that tomorrow and the next
425. 14:13few days and then not even care about it
426. 14:15anymore. And that's why at the end of
427. 14:18the day,
428. 14:19listen, you want to make a lot of money
429. 14:20in the stock market,
430. 14:22you have to have the ability to look
431. 14:25past
432. 14:27everything.
433. 14:29Like that's just the truth.
434. 14:31You have to have the ability to look
435. 14:33past
436. 14:34geopolitical conflicts. You have to have
437. 14:36the ability to look past elections.
438. 14:39You have to have the ability to look
439. 14:41past
440. 14:42everything that could mean a once in a
441. 14:45hundred year health event, 2020.
442. 14:49It doesn't matter what it is. You have
443. 14:51to be able to look
444. 14:53right past it.
445. 14:54Whatever you're whatever you agreed with
446. 14:56in the short term. And it doesn't matter
447. 14:58if it's a great financial crisis and you
448. 14:59got credit completely collapsed um and
449. 15:02lending completely dry up, right? And
450. 15:05the market go down 50%. Doesn't matter
451. 15:08what happens. You have to be able to
452. 15:09look past it. And uh
453. 15:12that's the difference between being able
454. 15:13to make a lot of money in this game or
455. 15:15get sidetracked by all those short-term
456. 15:18side shows that go on. Bill Ackman.
457. 15:21>> Question kind of plays into some of your
458. 15:22investments too. Elliott Investment
459. 15:25Management had uh its October letter to
460. 15:27investors that was out this morning or
461. 15:29it was out this for in October. The Wall
462. 15:31Street Journal has a story in this
463. 15:32morning's paper looking at it. They're
464. 15:35saying they're comparing this time to
465. 15:36the Roaring Twenties that led to the
466. 15:38Great Depression. They're worried about
467. 15:40several things that they listed. Uh one
468. 15:42is debt finance capital spending that's
469. 15:44out there, circular AI infrastructure
470. 15:47deals. And then they laid out this
471. 15:49growing pushback and backlash towards AI
472. 15:52and and how we're seeing that play out.
473. 15:54Do you share those concerns or do you
474. 15:56think that there's a different way to
475. 15:57see it?
476. 15:57>> I don't see a Roaring Twenties in the
477. 15:59stock market. Uh you know, if anything
478. 16:01this year earnings expectations have
479. 16:02gone up meaningfully and the multiple is
480. 16:04is is actually reasonably low uh
481. 16:06relative to the the growth inherent in
482. 16:08the market. So I'm not seeing that sort
483. 16:09of bubble-like activity in markets. I
484. 16:11think in private markets I would say
485. 16:13you're seeing a little bit more uh
486. 16:15what uh bubble-like activity
487. 16:17particularly in the kind of FOMO,
488. 16:19you know, private venture space, there
489. 16:20is some, but a lot of it is justified.
490. 16:23You know, I I met with the
491. 16:25Ramp team. Unbelievably impressive
492. 16:28company. If I were at American Express,
493. 16:30I would be concerned, but they're
494. 16:31building basically a financial operating
495. 16:32system
496. 16:33for every company in the world. Super
497. 16:36impressive team, growing at this massive
498. 16:38rate. You know, I think they justify the
499. 16:40valuations that they're in. So
500. 16:42I'm not saying that anything looks like
501. 16:43the 1920s.
502. 16:45Where I worry again, you your point on
503. 16:48the short-term stuff I think is bad. One
504. 16:49day options, people using a lot of
505. 16:51mental leverage, a lot of money being,
506. 16:53you know, betting on the outcome of
507. 16:55sports.
508. 16:56Short-term stuff I think
509. 16:57>> It's crazy this is even a headline,
510. 17:00right? And I'm obviously a huge Amazon
511. 17:01shareholder. It's one of my biggest
512. 17:03positions across, you know, my
513. 17:05public portfolios and private portfolios
514. 17:07and all that stuff, right?
515. 17:09Amazon's more likely to win in retail
516. 17:10than than competitors, right? Listen,
517. 17:13like why why is Amazon primed to
518. 17:15continue to win in retail for, you know,
519. 17:19the next 10 20 plus years easily even in
520. 17:22the AI wave, right? You got to ask
521. 17:24yourself that. I'll give it I'll put it
522. 17:26to you very simple.
523. 17:28Supply chain,
524. 17:30distribution,
525. 17:32transportation. Everything has to get
526. 17:35sent somewhere, right? And the one
527. 17:38company that is most well positioned be
528. 17:40be, you know, you you can't replicate
529. 17:43what Amazon's been able to do in in
530. 17:45terms of that sort of scale of
531. 17:48you know, the warehouses and, you know,
532. 17:51the the trucks and the planes and all
533. 17:53those sorts of things like that. It's
534. 17:54just
535. 17:56that's crazy. Like that's a crazy build
536. 17:58out, right? And
537. 18:00and to be able to make it work on a
538. 18:02margin profile front, oh,
539. 18:04it's it's so
540. 18:06it's so nearly impossible. It's not even
541. 18:08funny, right? And no one's been able to
542. 18:10try it. Then that's very different than
543. 18:12the physical retail space, right? You
544. 18:14know, obviously Walmart won the most,
545. 18:17right? But you had a lot of other
546. 18:18companies that was were able to build
547. 18:20something somewhat similar, not nearly
548. 18:22as successful as Walmart, but they built
549. 18:24something somewhat similar in terms of
550. 18:25the distribution of, you know, in in the
551. 18:27warehouses and all sorts of things,
552. 18:29right? Target, obviously still a very
553. 18:31successful company, they did it, right?
554. 18:32Just on a smaller scale than Walmart.
555. 18:34You had Kmart back in the day, they
556. 18:35ended up going bankrupt, but they did
557. 18:36it, right? You had Sears, you had many
558. 18:38other companies, right? But um at the
559. 18:40end of the day, like
560. 18:43you don't have anybody that has built
561. 18:46out the distribution the way Amazon has
562. 18:48built it out just focused on e-com,
563. 18:50right? You can say, well Walmart done
564. 18:51it, but Walmart really did it based on
565. 18:53physical retail, right? And so that's
566. 18:56that's special. Like like that is
567. 18:58special. What Amazon's been able to pull
568. 19:00off is very very special and uh Amazon's
569. 19:03just a company you can buy and hold and
570. 19:06not worry about. You know, obviously
571. 19:08your stock price is going to move all
572. 19:09around short term, but if you're just
573. 19:11thinking out over the next 5 10 15 20
574. 19:13years of a stock you can buy a lot of
575. 19:16shares in over time and just hold
576. 19:19through all the crap. Oh my gosh, like
577. 19:22Amazon's just a winner winner chicken
578. 19:23dinner and will likely outperform the
579. 19:24S&P 500 in a severe way.
580. 19:27>> At one day options, people using a lot
581. 19:29of amount of leverage, a lot of money
582. 19:31being, you know, betting on the outcome
583. 19:32of sports.
584. 19:33>> And the best part is the retail business
585. 19:35of Amazon, it's not even it's not even
586. 19:38it's the most important business. Like
587. 19:40that's the most shocking thing of that
588. 19:42because we all go to Amazon all the time
589. 19:43to buy stuff and all those Amazon trucks
590. 19:45driving all over, you know, our
591. 19:47neighborhoods and all that stuff. And
592. 19:49it's like that's not even their most
593. 19:50important business. That's like a second
594. 19:53like business compared to AWS. That's
595. 19:56wild, man.
596. 19:57>> That's where I think there's some
597. 19:58definitely some fluff.
598. 19:59>> Um let me ask you a different question.
599. 20:01It relates maybe to the midterms and
600. 20:02beyond. It's a political question, but
601. 20:04it's an AI question, which is how much
602. 20:06do you worry if you look at an Amazon,
603. 20:08uh a Meta, uh some of the others where
604. 20:11data centers are going to be the
605. 20:12business
606. 20:14and that becomes a political football.
607. 20:16Uh I don't know if you saw
608. 20:17El Sayed, if you think he's going to win
609. 20:18in Michigan is saying that he wants a
610. 20:20pause on AI. It's a it's a conversation
611. 20:22you hear
612. 20:24And what kind of headwind you think that
613. 20:25poses?
614. 20:27>> I think uh you know, it's a global race
615. 20:30for super intelligence. We don't want to
616. 20:32get there second, right? That's That's
617. 20:34existential to the United States. I
618. 20:36think there are plenty of states that
619. 20:38would be delighted to have the jobs uh
620. 20:40the job creation and you know, we got a
621. 20:42lot of land mass in the United States.
622. 20:44Uh I think
623. 20:44>> So you're not worried about it? It's not
624. 20:46something you think becomes a broader
625. 20:48topic of conversation
626. 20:49>> I just think we have I think we have no
627. 20:50choice. It's like you know, saying we
628. 20:52want to slow down the pace of
629. 20:53electricity penetration into America,
630. 20:56right? It's going to give people
631. 20:57Uh so I I I think we
632. 21:00I think it's a good Maybe it helps win a
633. 21:02few votes going into midterms, but
634. 21:04practically speaking, we can't slow down
635. 21:06our
636. 21:07our We have to be uh primary in AI.
637. 21:10>> Was that
638. 21:11really your tweet the other I I'm
639. 21:12looking at to make sure that it was
640. 21:13yours cuz I wanted to retweet it and
641. 21:15then I said, you know what? I don't need
642. 21:17it.
643. 21:17>> Which tweet is this?
644. 21:19>> It's about
645. 21:20these current state of of the midterms
646. 21:22and some of the candidates
647. 21:24>> So here's the thing, right? You know,
648. 21:26cuz obviously worries about like, oh, if
649. 21:28the the Democrats win, it's going to
650. 21:30they're going to block all the data
651. 21:31centers. Listen, no. Listen, listen,
652. 21:33listen. Have you ever
653. 21:35flown in an airplane before and just
654. 21:37like
655. 21:38looked outside? It's just like
656. 21:40United States, we got what? 330 million
657. 21:43people or whatever live here
658. 21:45and we live like nowhere. Like like the
659. 21:47whole dang country is like not even
660. 21:49developed. You know what I mean? Like
661. 21:50like the amount of land that's just
662. 21:52available is insane. So let's say
663. 21:55there's some push back in some cities
664. 21:56and they want to push these data centers
665. 21:59further out, right?
666. 22:01Push them out further. That's fine. Like
667. 22:03you know, a lot of these data centers
668. 22:04are being built now
669. 22:06not even on the grid. They're They're
670. 22:09having their own electric infrastructure
671. 22:11and um
672. 22:13and what not built
673. 22:15for the data center, almost like a
674. 22:17miniature grid, right? So
675. 22:20the truth is like with these data
676. 22:22centers, maybe there could be more
677. 22:24regulations and things like that, but it
678. 22:26all just gets worked through. Like, you
679. 22:28know, maybe that slows things down a
680. 22:30little bit, worst case scenario, but
681. 22:32it's not like, oh, it's all over, we're
682. 22:34finished, we're done, right? I guess
683. 22:36it's just crazy, okay?