Wedbush Analyst Dan Ives Talks Tesla

Bloomberg Audio Studios, podcasts, radio news. Joining us now from Snowflake Clothing, Dan, i'ves joins us this morning.

Thank you for toning it down. Dan. I'm apoplectic this morning.

Over what I saw is a complete reaffirmation of the Google model.

It's out there. I'm gonna do a major shout out to as a fitch over it. Heard in the street on the Wall Street Journal, who I think really nailed? I was OMG? Was I right to be? Omg? At four twenty yesterday afternoon? I mean, look this it.

I think it's a game changer for the whole story because it shows like Google, now there was a view they're in the defensive. AI is going to ruin their search business now look at look at search, mass advertising, struck, YouTube, cloud, better things back and then the best thing by then increasing cap bax ten billion. That's then basically beat in their chest saying hey in this arm.

I went and looked at it, folks. You can do this with the WACC screen. Good morning, mister Secunda. The way did the average cost a capitol screen on the Bloomberg an added ten billion of capax for Google is basically trying to buy another house out in Menlo Park.

It's like a rounding error.

That's it's exactly and look Tom, the last thing that they could be is on the outside looking in on this AI arms race. And I think the view, look, we think on a large cap perspective, this has been the most over sold stock relative.

I'll go with it.

And again I get like DOJ regulatory, But the view that AI is going to ruin Alphabet's business is dramatically flowed.

Let's go touch a feey concept here, it's away.

Lisa Rolls, what did we learn yesterday about how we use AI.

With our searches? I think we learned something new yesterday.

I think what you learn is that you do those searches. Google's going to play a huge part. And I think if you look at like actual like advertising, you look at like search results, you look at all the underlying metrics, it shows that it's actually an accelerant for their business. That's something that takes away and I think that's the thing.

Is Paul Dan's code. Okay, for those of you on radio, it looks like look at his code. It's like a truckboard in a physics lecture.

It's not kill tech it's very troubling.

In a Cartesian space.

Continue, search revenue is number of clicks times revenue per click. I'm clicking materially less. How does that not bead for their search case?

So that you can say it's bad now. But the view is is that Paul, given what they're doing in terms of investments in AI, given where they view ultimately the future, that when you're going to come back in terms of searching through models, through through actually like LMS, Google is going to play a role in monetizing that and even on the advertising side. And I think that's really the view is that this is not something that's structurally gonna be a threat to their business.

It's actually the opposite.

They're gonna turn it into what I view.

As a towel.

And I think that's what Tom's talking about. That's what came out last night, is that this is not a company on the defensive.

This is coming on the offense.

Okay, all right, So, and we're seeing that in this in the stock the stocks up three point six percent here today, although it's flat for the year, so it's there's definitely concern out there in the marketplace about this story. Here more concern is with Tesla. I don't know, man, My hat's off to you hanging with this dude, But making cars is not a good business for anybody. It's never has been. So he's trying to redirect us to all this other stuff, which fine, you know, a lot

Look but me, we've talked about for years, like I don't view this as a car company, and you never have right nowlogies. But to me, the future is about AI. It's about physical AI in terms of autonomous robotics. No this quarter, in the next few quarters, there is nothing right at home about right in terms of actual deliveries, demand, gross margins EPs. But if you look at the story over the long term, I believe ninety percent of the

Okay, that I mean, that's obviously the future here. Give us that the mile post. We should be if we're taking our attention away from the car business, what are some of the mile posts for these other businesses shoulday attention to.

So well, first off, from a robotaxic perspective, you're looking to be in twenty.

Five cities in the next year. Okay.

So our team was in Austin. We saw Robotaxi front center. So you're seeing that expansing diffinitely in Austin. California's next, then Florida and bunch other Okay, you know, see, look, and I believe one of the big mile posts that everyone's looking for is, you know, at some point, probably early twenty six, when Keyn's in a robo taxi and the thing is, I do think that I do think that that will happen.

Okay, Yeah, it's interesting.

I mean Tom, when Tom's in a roto taxi, Yeah, I might be mine.

Good look for that.

Dan Ives is here in your commune across the nation, particularly good early early morning in the sixteen miles between Menlo Park and Coopertino.

How did Coopertino digest the Google earnings yesterday?

You know, the basic you know, I can just see the leadership of Google and Apple taking a breakfast or lunch at Mademoiselle Collette, you know, some fancy place out there where everybody eats herbal And the answer is, how does Apple take this?

To me, it's a huge deal for Apple weave.

I think that the view that Google is going to become less important Apple is the exact opt.

An agreement with that talk about. We've said it. It's a two part thing.

I think you need to get a significant sort of upping of that partnership with Google because when you look at partners that's one that they're going to bet on. In terms of Apple, and I continue as I've talked about, I think for the first time, they're going to have to do an acquisition. Like I told you, I think perplexity continues to be the one that they should go after, because my whole point is we should Apple should go after perplexity.

And let's let's dig into that time. Full disclosure, folks.

Mister Secunda, one of the founders of Bloomberg, is hugely influential in AI with the Secunda Foundation, and he leads with perplexity.

What is perplexity When.

You think about models, chat, GPT, you know anyone that uses perplexity as you know, I've used probably one of the best next gen AI models out there. The reason it's so important and some disagree, but Apple needs to make an aggressive move. They cannot watch this AI revolution and just when it pass by. That's why I think what you saw from Alphabet was a stepping up when

Lisa, what's the most herbal macha coffee thing in the morning, Like, what would be the typical West Coast you know, a healthy coffee thing.

It's called a dirty macha Cooper Tina.

This morning, the team's having their dirty matchas to get the days started again. How does Apple respond to what we learned thirteen percent YouTube growth?

Thank you folks for that. I'm living it every day.

And the answer is how does Apple respond to perplexity, to Gemini and to Google's you know, their embedded relationship Google.

If you can't beat them, join them, Like they're basically going to have to double down on the partnership. Despite all the words in terms of d J and everything that Google is dealing with. And I think for Apple, look this, you have the best global install based in the world consumer. You have two point four billion device one point five billion iPhones. Now's the time to start to monetize AI. But that's not going to happen internally. It's not going to happen within the walls of Apple Park.

This is courtesy of Google AI. A dirty Macha, also known as a macha espresso fusion, is a popular beverage that combines the earthly flavor of macha tea with the bold intensity of a shot or two of espresso.

Dan.

In terms of like single, best Buy, web Bush, I mean it's great.

I love the snowflake. Look you look like Heinman's Physics last years ago when you got that what's the hat?

Damn it? Yeah, Majorca hat.

It's a you know, it's from Majorca to one of my Orca It's just my Orca hat. And look it's it's one where you know this is I mean to me when I look at like Webbush, best Buy, the best names. I believe it's Microsoft here. This is the one that you know because this is the one. It's not just about four trillion, it's about as the enterprise AI plays out in the backyard of red. It's Nandella that's gonna does.

Think of what Google did yesterday.

I think what Google did yesterday on Google Cloud, I think just speaks further what you're going to see what they did on Azure coming next week. But the most important thing is that everything that Google's doing, all the investment, everything is sand search gets who eventually benefits.

Because they're the toll.

Microsoft's the toll collector. It doesn't matter who's there in one way or know you're paying them as more and more moved to the cloud right and it's AI driven that continues.

One final question, this is so important the gloom crew on dan Ives.

Did you know I understand there's haters out there.

Now, haters, haters.

Lisa, and then you know thousands others, the dan Ives haters. You have been so right, including pounding the table the first week of April. I want you to speak to the haters right now about the X axis of the ives tech boom.

Look, I think the haters, you know, and right now they're they're in the hibernation mood in those caves. They can find AI in the spreadsheets. And I think part of the problem is that they're underestimating the Fourth Industrial Revolution. And as I've said, what.

Does that mean?

Look three millionaire miles.

Ask walking test speech.

Look it point is three millionaire miles to last twenty five years. It's about seeing what's happening in the world. And if you look what's happened in Asia and you look at Chipped the man, we are only it is fractional where we are relative to the opportunity.

It's our view.

It's ten pm in the AI party. It was nine pm and the party goes to four am.

I'm gonna say this is simple as I can.

We keep tracked.

We learn from people who are wrong, we learn from people who are right. But it's this thematic idea of where we are folks right now to me, I said this last.

Night to missus Keane. It's like late nineteen ninety four, early nineteen ninety five and Dan.

Ives was in a bar with a Budweiser in his hand saying, Codje Google's.

Buy a dog file.

It's nineteen ninety five, not ninety ninety nine.

Good Jedives, Thank you so much with Medbush