Microsoft Just Changed The Game

You know, I was trying to wait until Friday to summarize the earnings week and go over them, but then Microsoft and Meta reported and it's just too good to wait. I can't wait until tomorrow. We have to talk about these two companies. Microsoft and Meta's report, they were just incredible. Incredible doesn't even describe it. These weren't just solid reports. These were step changes in the

direction of the businesses. Meta posted again their astronomical beats on the top and bottom line. It's at the point now where it's like the Breaking Bad meme. You can't keep getting away with this. Well, Mark Zuckerberg keeps doing it. Every single earnings quarter he seems to post groundbreaking earnings results way above expectations. And now Meta is at all time highs. Then we have Microsoft with Satya Nadella posting numbers that are unthinkable. These are literally unthinkable

numbers just a couple years ago. And here we have them growing cloud faster and faster. The AI revolution is real and these companies are showing it, and we're going to be going through all of it. I can't wait to jump into this report, look over the numbers and the commentary. We had time to look over the earnings calls and really dig in and see what's going on. And we have a few other companies I have to throw in today. S&P Global, my largest holding, or at least one of them,

reported earnings today. It was pretty good. We'll be talking about it. We have FICO, which is on its long trend downwards. Fico's being decimated. It's down below $1500 per share. I'll be sharing the clip of the CEO addressing one of the problems that company's facing. And then we have MasterCard and Spotify, two other ones we'll be talking about briefly as well. So we have a lot to jump into. First of all, let's go ahead and jump into Microsoft.

We have this one here, and just at a quick glance, it's up 4 1/2%. Now. There is some fade going on here. It was originally up like 8%. We faded down to 4 1/2%. It's moderating a little bit, but I think that Microsoft deserves to be up 4 1/2% at least after this report. And that is with knowing that this company trades at a 35 Ford PE. So it's already an expensive company. My opinion, it deserves to be expensive. It deserves to be more expensive

than it is today. This is, I'll go over it, but this is an incredible, incredible report. When we look at Microsoft in terms of my position and ownership of this company, I've been bullish on Microsoft for a long period of time. And, and just as a side note, we reached record highs in the portfolio today.

We're finally up to 911 thousand, $363,000 in gains, record highs mostly due to MasterCard, Microsoft and S&P Global. But if we look specifically at Microsoft, we can see this position in this passive income portfolio. It's an $87,000 position, 44,700 of that being gains. So the performance weighted return is 2 and a 250%. That's because I've owned it for years and on a performance internal return it's been really

high returns. I've added more to the holding recently at a price of around 23240 and it's since doubled over, doubled since then. So this one overall, even with my most recent additions has doubled in price. And that's just in the passive income portfolio. If we look at the story fund, my secondary portfolio, this one is now at all time highs as well. So both portfolios record highs today. Love seeing this type of thing. It's what we should see in bull markets and Microsoft has played

a key role. This one is again another $27,000 position, 14,000 of that being gains. So it's another one in both portfolios. It it's wild the returns that I've had with this company and it's really incredible because Microsoft has always been one of the biggest, one of the most known companies, but it's still been one of the best risk reward companies in the market. If we look at the combined portfolio here and the unrealized gains from this stock, keep in mind this does

not count dividends. So this is the gains without dividends is $56,700 in Microsoft, just an incredible, incredible performer. Now it's the fourth largest holding in the portfolio, making up roughly 9%. Now again, if we look at this most recent report of Microsoft, what did this company do this so special? You're not really going to see it in just the revenue segment chart. You see a little bit of it. The company's growing 15% year over year.

Now already when we look at Microsoft, 15% revenue growth is already good. That's good growth for a company this size. We're talking about a $4 trillion company growing revenue 15% year over year. That's already incredible. That beats out a lot of smaller startup companies. But then you look at what is actually growing in the company. We have the Qualtrim summary of the earnings transcript, and we have here Microsoft Cloud and AI

scale. Microsoft Cloud annual revenue surpassed 168 billion, up 23%, driven by rapid innovation and adoption of AI products. Now, here's where Microsoft gets a little bit confusing. There's Microsoft Cloud and then there's Azure, and those are two different things. A lot of people kind of intermingle those or they use them interchangeably. They're not the same. Microsoft Cloud is like every single cloud product.

It's just like Microsoft Excel. It's everything that's hosted in the cloud that uses one of their clouds. That's Microsoft cloud. But then you have Azure. This is Microsoft's actual cloud offering. This is more directly relatable to something like Google Cloud or like AWS. Azure's annual revenue exceeded 75 billion, up 34% with constant currency market share gains and global data center expansion over 400 data centers in 70 regions. What?

Excuse me, is this something where they're like manipulating the data? I had to do a double take when I saw these numbers growing 34% and at a $75 billion annual rate. When we again compare this to Google Cloud, and I'm very bullish on Google, I'm a bullish on all these cloud companies. But if we compare this to Google Cloud, we have search, YouTube ads, let's cross all of those out, then we have Google Cloud. Google Cloud is at a run rate of

$50 billion. So it's actually relatively close to Microsoft, 50 billion versus 75. But Google Cloud grew by 32% last quarter, quarter over quarter. Azure, which is at a $75 billion run rate, you're at 34%. So it's bigger and growing faster. That's usually not a recipe that happens. You usually get one or the other. Usually you're a lot bigger, but you grow a little bit slower because of the law of large

numbers. But what Microsoft is showing is that even though they're bigger, they are growing faster. And to pull that off, you have to have an advantage. You have to have very specific advantages, which of course Microsoft has their advantage is that Microsoft is doing a lot of integrations from local on premise to cloud.

They're doing migrations rather where they're taking a lot of their customers that they already have because everybody uses Microsoft products and they're saying, hey, our cloud offering works really well with our our Microsoft products simply upload to the cloud. Those migrations have speed up this year as well as all of their AI tooling.

So Microsoft has this very unique, very good dynamic working with the company that Google's tried to mimic, but is having a harder time mimicking and AWS simply doesn't have. Now again, to give this some perspective, if we go back to Google, Google Cloud is at $50 billion, growing 31%. Microsoft is at 75, growing at 34%. And then we compare this to Amazon. A lot of people are saying Go, Microsoft has a better cloud business than Amazon because Amazon's growing a lot slower.

AWS will probably post growth of 17 to 18%, maybe a little bit faster if we get lucky. But AWS is growing around 18%. And again, that's a lot slower than Microsoft or Google. But AWS is at a $112 billion run rate, $112 billion when they report later today. AWS could be bigger than both Microsoft Azure and Google Cloud combined. So even though they're growing slower, AWS is substantially bigger, and I don't think that gets highlighted enough.

So it is true that Microsoft is growing super fast, faster than Google, a lot faster than Amazon. But Amazon does have a massive cloud. They mention here that Microsoft is scaling data center capacity faster than competitors, so they're actually building out new data centers at a faster rate. It says in competitors. I wonder which competitors they're talking about. They have to be talking about

Google and Amazon right? Every Azure region is now AI 1st and supports liquid cooling for greater infrastructure flexibility, continued improvement in efficiency and performance, 90% more inference tokens for the same GPU via software optimization. So again, the most important thing in this report, the very top thing outlined, is Microsoft

Cloud and AI scaling. The reason that the company's up so much today is because of the monumental acceleration in Microsoft Azure. The fact that they're growing at a 34% rate is incredible. It does make the company deserve a higher multiple. Now on top of that, there's a lot of other things. The cloud isn't growing in isolation. It basically powers every other tool from Microsoft. You have AI, platform, data and

developer ecosystem. Introduction of Microsoft's sovereign cloud to address specific data residency. Microsoft Fabric revenue rose 55% with over 25,000 customers. Azure Data Bricks, Snowflake, Azure Cosmos DB, Azure Postgres SQL showed strong adoption and support for open AI workloads. Azure AI Foundry is gaining traffic, offering tools for redesigning, customizing, and managing AI agents at scale.

Foundry now has 14,000 customers with 80% of the Fortune 500 using it. Foundry serves over 500 trillion AI tokens per year, a sevenfold increase indicating widespread platform use. So when Satya Nadella talked about no longer being a software company, but now being an AI engine that powers AI for the rest of the world, this is what

we're talking about. They are are basically like a Microsoft can now be looked at as like you get into your toolbox and you have all these various tools, but they are the toolbox for artificial intelligence for the rest of the world. That's the type of company they're transforming to. We go to Copilot in the application layer. Copilot Suite has over 100 million monthly active users, a commercial and consumer with 800 million users engaged in AI features across Microsoft

products. So copilot alone has 100 million active users. If we look at this, we can go back to Microsoft here on the insights page and one of the KPIs we track in Qualtrum here with Microsoft is the 365 consumer subscribers. Now, if you're not aware of what this is, this is the amount of people using their whole like suite of software, the 365 suite. But within this suite is Copilot O, the 100 million users of Copilot are part of the scope of the 347,000,000 using 365

consumer subscribers. We have Microsoft 365. Copilot adoption is accelerating with significant seat growth and notable enterprise wins. Barclays, UBS, Adobe. Copilot Studio enables customers to create and tune their own AI agents. With three million agents created in the past year, this is directly competitive towards Salesforce. Salesforce has the agentic technology as well. GitHub Copilot continues rapid growth with 20 million users and enterprise customers count up

75% quarter over quarter. Used by 90% of the Fortune 100 in healthcare, Dragon Copilot usage increase by 7X in business applications. Dynamic 365 is seeing share gains across industries. How can you read through any of this and be slightly pessimistic about this company? They have like 100 different tools, all of them being used in growing amounts, gaining market share against competitors. You have consumer business, LinkedIn and Xbox.

We're getting off of the cloud and copilot here at Microsoft has a wonderful social media company. Linkedin's one of the best that you can get economically speaking. AI features and agents are being deployed across hiring and sales on LinkedIn. The gaming business, you have 500 million monthly active users, strong performance in Xbox and PlayStation publishing Call of Duty Black Black Ops 6 reached 50 million players and Minecraft saw record active usage in revenue helped by the

Minecraft movie movie. So we have good growth in the other various segments. These aren't as core to Microsoft. Another thing that they mentioned on the earnings call is that Xbox, what is it called the Xbox membership that you can get the Game Pass that's also seeing strong growth. So they're again getting more subscribers, more of this residual type of revenue in

every business line. Microsoft launched over 100 new security features in the past year, expanded capabilities in Microsoft Sentinel and Tread, Defender and PureView. I've talked to employees of people from places like Crowdstrike and they list Microsoft as one of their biggest competitors. So even just security focused enterprise cloud application companies view Microsoft is one

of their biggest competitors. What we're seeing here is incredible fundamental business performance with every segment of the company growing hundreds of various products, all of them growing and taking market share. And then to encapsulate all of that, the cloud is outgrowing even its gigantic competitors. Overall, the report was better than solid.

It was incredible. This is a report where you can try to look through it with a fine tooth comb and find something to criticize, but if you do that, you're missing the bigger picture. This is a massive, ingrained tech company deeply embedded in every single company in the world, but now it's embedded itself even more by powering the rest of the world with artificial intelligence. Microsoft is not going away for a long period of time. This company will far outlive me.

And over that time period, I think it's going to continue generating enormous amounts of wealth even at the share price that it's currently at. I refuse to trim this one. I just refuse to trim it. When I see a company that's this fundamentally strong, it's hard for me to find any weakness in it. So as of now, Microsoft is lifting My Portfolio, becoming a bigger and bigger position, and I continue to hold. Now moving on, of course, we had

Meta also report their earnings. They're up even more today, up

12% on the day. Now Qualtrm notes here that Meta Platform shares are trading higher after the company reported better than expected Q2 financial results and issued Q3 sales guidance above estimates. So there's the quick summary. Meta beat on both this quarter's results and they beat on their expectations of guidance. And this is one of those things where Mark Zuckerberg just keeps doing it. He keeps doing this thing where he beats the earnings estimates

by like 2030%, even 50% or more. These incredible earnings beats. For example, if we just pull this up on Qualtrim, we look at the the dot plot chart here we look at the earnings over time. This shows that they beat. Then if we show the estimates, you can get an idea of this. It was $7.14. Sorry, the estimates were for $5.88 and they came in at $7.14. It's incredible. How do they beat by that much? The estimates were for 44.8 billion and they came in with

47.5. The analysts aren't even close and they haven't been close for a while. Look at the last couple of quarters. They weren't close this quarter. The analysts weren't close last quarter or the one before or the one before. They're a little bit closer in Q3 of 2024, but still just shy. Meta is outperforming the analyst estimates by huge margin quarter after quarter after quarter.

So the the stock of course is going to have incredible performance when you have that type of outperformance every single quarter of expectations. Now we can take a look at some of the financial performance metrics here and they're pretty staggering. Q2 revenue reached 47.5 billion, up 22% year over year. So Meta is still growing at that rate over 20%. When a company can continue to grow above 20% year over year, it's hard for anything else to

go that wrong. It really the other metrics have to be terrible for you to grow 20% for a long period of time and to have bad performance. The top line revenue growth gives so much wiggle room for everything else. If you're growing 20%, it's difficult for margins to go down. It's difficult for you to have other troubles in the business, especially when you have 1/2 decent business or at least a great one like Meta. So a company of this quality growing 22% is huge.

Operating income was 20.4 billion with 43% margin. Net income was 18 billion. These are massive numbers. Expense was 27 billion, up 12%. So the expenses are growing far slower than the top line revenue. When we look at some of the more business metrics of the company, one thing that's always impressed me is how they're able to get so many people using their platforms, keep them on their platforms and then kind of cross sell them to their other

platforms. So people using Instagram are going to be using Reels or Facebook or you know, all all the different properties they have on each platform. Even going out to things like Threads. They're getting more people to use different, different platforms. They have Meta reached over 3.4 billion daily active users across his families. A family of apps reporting strong engagement across Facebook, Instagram and WhatsApp.

If we look at this number over time, the family daily active people metric, this is what we're looking at here is up 6.42%. Now that is strong growth when you keep in mind that this is from 3.43 billion people to 3.48 billion. So they added on hundreds of millions of people in the last quarter. Incredible to see that continue growing. Time spent increased due to AI driven improvements with Facebook up 5%, Instagram up 6% in the quarter.

They're still keeping people on their platforms for longer periods of time. Instagram video time and Facebook video time both increased by 20% year over year globally and in the US, respectively. So they're growing much faster in video across all their platforms than any other any other form factor. You can look at that as a competitor to YouTube. I I certainly think it is, But I also just think that video is by far the most intriguing and engaging way to consume content.

It's more engaging than just audio. Even Spotify says that video is more engaging than the audio on their platform. Whenever someone uploads a video podcast, they have higher engagement levels. Mark Zuckerberg noted that he believes we're getting closer to super intelligence, meaning that the artificial intelligence has begun to self improve internally, with initial use cases seen for autonomous AI agents enhancing product

algorithms. So basically the whole idea of super intelligence is it's like a a system that improves itself with no feedback from humans. It's self reinforcing, self improving all by itself. That's super intelligence because when you do that for long enough periods of time and it compounds over time, theoretically that means that computers could far outweigh human intelligence and do it in a self reinforcing way. That's what Mark Zuckerberg is

going for here. He's hired this team of really smart people that they're paying hundreds, millions of dollars, a small team to continue making these improvements. So Meta's become a little bit like Google where they're now doing a lot of experimental stuff. They're doing more labs and kind of becoming a researchers and scientists along with just a business and that's been really successful for Google. I think it will work for Meta as

well. Generative AI and AD creation is increasingly contributing to ad revenue. New models deployed and AD rankings and retrieval systems. Introduction of ad placements and threads feed and WhatsApp updates tab with plans to gradually increase ad supply. Business messaging and Click to message revenue continue to grow, especially in the US over 40% year over year growth for Click to message content recommendation and original

content. Continued optimization of recommended algorithms with LLMS, including Llama, driving significant improvements, especially on threads. So what they're doing here is they highlighted that they're trying to surface smaller, newer content creators that are actually creating good content, because a lot of them just get lost in a sea of content. And they're using LLMS to determine that this is fresh content. It needs to be shown to other people, and they're growing a

little bit that way. They have focused effort on promoting original content. And then one of the notable things about the shift with Meta is that they remain focused on leveraging a small, talent dense team for frontier AI research contrasted with the larger scale teams used for incremental product enhancements across its platform. So for AI, Mark Zuckerberg is convinced that that a few amount of really small smart people is better than a large amount of

mediocre people. He thinks that if you can just pay the right people, buy the right team, that it can make more gains in AI than just hiring endless amounts of people. The primary focus over the near medium term is not immediate monetization of generative AI, but ramping user engagement and product quality. Monetization will follow as products and scale matures. I think that's the right approach as well.

Meta's investment cadence is directly tied to business opportunity and return expectations, focusing on sustained profitability growth over time, even if investment cycles occasionally surpass short term margins. So they are in this for the long term. Now let me be clear about one thing here with Meta. The company deserves to be moving up today. It deserves to trade at the 29 PE ratio it now trades at.

Expectations should be higher moved up for Meta because how much they have proven Wall Street wrong again and again. Now I'm of the opinion that right now Meta is a a great company. I would be fine having this one in My Portfolio. But I look in compare and contrast the opportunity of Meta and Google and I just think that Google is such a good opportunity for me.

When I I look at putting in incremental money into the market, I look at Google trading at an 18 to 19 PE ratio and Meta trading at a 29. And even if Meta has some unique things about it that Google doesn't have, Google has a lot of unique things about it that Meta doesn't have. And both of these companies had incredible earnings reports. They're growing quickly. Google Cloud is not slacking.

And this company is full stack integrated from creating cloud infrastructure, artificial intelligence models all the way to distribution. They already have the AI research labs as well. So in my opinion, even though Meta is incredibly strong and I see it as a great company, I'd

be fine holding in My Portfolio, when I'm looking at new incremental cash flows, I'd probably choose Google over Meta. Now outside of Microsoft and Meta, there's still a lot of important companies that reported earnings. One of them is S&P Global.

This one just reported today, the stock is reacting by around up 4 1/2% and it says that S&P Global shares are trading higher after the company reported better than expected Q2 financial results and raised its financial year 2025 adjusted earnings per share guidance above estimates. So they be on the top and bottom line and they're raising their guidance. This is something that's very

common for this company. Now when I look at S&P Global, this is around a 13% weighted position, $38,000 in gains. It's moving up quite nicely this year. I don't have too much to say other than this one is what I expected, which is business as usual when we look at the revenue segments of this company. One of the major things that could help this company is interest rates dropping. If interest rates do go down, which I think they eventually will, it'll help out every

segment of this company. The indices, you have more investments going, more trading, the market intelligence, you have more interest in investment. When interest rates drop, you have the rating business. All that global debt. When interest rates drop, it helps out global debt. All of that is benefited by

interest rates dropping. Now, that's not something that you need to bet on. So if you're invested in S&P Global, you're not just sitting around waiting for interest rates to drop because the company will do fine even if that doesn't happen. But it can be viewed as an extra catalyst for this company. Overall, the report is strong. Business as usual, continue to growth for company.

I'll continue to hold. One company that's having a lot more trouble that recently reported and it continues to fall is FICO. It's down another 6.7% on the day, down to $1400 per share. Now it seems like a a high share price, but if we look just this year, FICO was trading at $2200, so it went from 2200. Now it's down nearly 30% on the year, down 50% from its highs. It's down to $1400 per share.

Qualtrum has a note here noting the reason why it's saying that Fair Isaac shares are trading lower after the FHFA director. Poult yesterday said Fannie and Freddie will allow lenders to

use Vantage 4 Point O Score with no current requirement to build new infrastructure. Multiple analysts lowered their price targets on the stock. So what's going on is FICO was one of the ones that was the sole approved to do credit ratings and now they're just expanding it, allowing Vantage Score. Now theoretically, this helps out Vantage Score owners like we have, for example, Equifax here.

This is a company that I own and this could theoretically help them out, but it's not a huge business segment. So if Vantage Score grows, that's good for Equifax. It's another business line, but it's not like the biggest thing going on with the company. So this hurts FICO a lot more than it helps Equifax. But either way, as an Equifax owner, I'm not concerned about this at all. It doesn't affect me. This really only effects FICO. Now. Why has FICO become such a

target for regulators? Why are they wanting to adopt so much competition and allow Vanish Score to compete directly with them? Well, part of it is that FICO raised prices rather aggressively over a short period of time. They went from like a dollar a score to around 5 or 6 bucks a score over just a short amount of time. And even though the amounts are small, it looks huge in terms of percentages.

Imagine if for just a second the dollar 50 hot dog combo at Costco suddenly went to like $8 in a single year. You you just be Jarred by it. People say what's going on? It was $1.50 and now it's $8 in a single year. I mean the people would be furious about it. Normally looking at a hot dog combo and seeing that it's for 8 bucks may not raise any eyebrows, but the rapid price increase is what raised eyebrows for FICO. And this is what the CEO is trying to address.

So he's kind of on a media tour here doing PR damage control over their price increases. And this is one of the most interesting conversations because the CEO directly addresses the price increase comments. Look, the difference between a penny and five cents is 500%. It sounds terrible in percentage terms, but let's face it, we're talking about the price of a FICO sport being in the in the neighborhood of a cup of coffee, and we're talking about $6000 of

closing costs. Hundreds of dollars in other fees, hundreds of dollars in title insurance fees, for example. So $4.95. Frankly, I think it's a bargain. I cannot. We could give it away for free and it wouldn't change anyone's costs. Now the CEO of FICO is correct and he makes a strong point. Going from a penny to 5 pennies is a 500% increase, but it's still only 5 pennies.

So looking at the change in percentage terms gives you the impression that it's this huge change when it's really just 5 pennies. And that's how he's trying to portray this, that even though they increase the price a lot, it's still dirt cheap, so it's not that big of a deal. What I think he misses is simply optics. He's the CEO of the company. He should be concerned not just about what's real reality, but what perception is.

I, I have a phrase, it's one in business that my dad has always told me that in terms of business, perception is reality. How people perceive something becomes their reality of the situation. So even if FICO is offering great value, even if it's true that penny to $0.05 is only $0.05 in all, it's still a 500% increase. They still went from less than a dollar to now $5 per score in just a couple of years. And that's going to raise eyebrows. That's going to frustrate

people. People look at the increase in price, Regulators look at that, and they believe that you're a monopoly extracting toll, monopoly price increases. Now, if you took the approach of trying to have a better optics, better perception with regulators, he would have increased prices on a slower cadence over a longer period of time, Still fast, but not so aggressively in such a short

amount of time. So my big criticism of the CEO is basically that even though he might be mathematically correct, even though FICO represents a very small portion of total closing costs, even though most consumers aren't really concerned with it, he played the game wrong. They are in a dominant monopolistic position, and he extracted too much pricing power too quickly.

That forced regulators to look at the the situation and now they're responding aggressively, allowing for more competition in scoring. So part of this I do feel is a a misstep by FICO leadership, an unnecessary one where they guided the business for the short term, not for the long term. You can raise prices above inflation and still have a great business for a very long period of time. So to me, this was a strategic

perception PR mistake. It's causing a nightmare scenario in the company where the stock is down 28% from just the beginning of this year. It's now down 10% over the trailing one year. Now this doesn't mean the business is bad or that things are going to keep getting worse for FICO. I believe we'll find some support eventually, but right now the situation is dicey. It seems like regulators are really determined to put pressure on FICO for as long as that's happening.

I feel like this one's a little bit too difficult right now. I'm going to wait and see if things settle down, see if there's a little bit more clarity in the situation. If we look at the total portfolio here, MasterCard is the second largest position. And I know I don't talk about it that often because it's just so it's, it's just so steady and usual and predictable and it's such an easy investment that there's nothing to really discuss.

It's a great company that constantly compounds, has super high margin, it's super profitable, that continues growing at a high rate. And there's not much else to the thesis. It's a 12% position. I'm currently in the green by $36,000 on it. When I look at MasterCard, it was another quarter of business as usual. We already saw from Visa that things were going to be good. They were good for MasterCard,

even above expectations. When we look at some of the metrics here, they're truly just staggering. Here's what the revenue growth looks like over time, another 15% growth quarter. So MasterCard is a fast growing business. Everything looks on track with the business. Free cash flow is growing as usual. Free cash flow per share is growing super fast. We have earnings per share also growing 13 to 15% range. Strong growth there over time

and incredibly consistent. Then you have the earnings call where they continually note that the business is incredibly good, but they're not seeing a lot of consumer issues or signs of a recession or the fears that people have. On top of that, they're embracing stablecoin and helping with doing transactions and different things involved with it. O they're fully embracing the fintech wave. They're not running away from it. Now lastly we get to Spotify,

which in my predictions I noted that this one would probably post great earnings results, but yet it would fade away anyway. And that's what happened with this stock. Spotify posted earlier this week. The stock was around $700.00 when they posted and then it fell down to around 6:30. So it did the same thing roughly that Netflix did. They posted a really strong earnings report, but the stock traded down anyway.

And that's because if they show any slight weaknesses at all, any softness and guidance whatsoever when your stock trading at this valuation, investors are going to sell with any signs of weakness. Now, in my opinion, when I look at Spotify, it's a company that I've wanted to own for a long period of time. So I'm very much wanting to get a stake in equity ownership in this business. I think they're going to be around for a very long period of

time. It's like a Netflix, it's going to be around for another 50 years. They're going to generate a lot of profits. They have a huge platform. They have more and more monthly active users. When we look at the data here, they have 696,000,000 now. So they're basically at 700 million total monthly active users. When we look at this more specifically, the premium users, they have 276,000,000 and then AD supported, they have 433

million. And both of these are great, whether you're AD supported or premium, both of them are profitable for Spotify. So their user base continues to grow over time. And I think they're going to get to that billion mark. They're going to get to a billion users. So the long term of Spotify looks great. The problem that I struggle with is an entry point. I've looked for better entry points and it's very difficult to find a decent one in this

company. I think I'll start looking if the stock gets below $500 per share. That's at the only the only point where I can really look at it and believe it's worth it with the multiples it trades at 'cause it's already at a 54 PE ratio. So Spotify had another great report. They grew their membership base. They're headed towards that billion user mark. They're growing in free cash flow and earnings. They're also gaining market share in video along with Meta and other companies.

So they're growing that out as well. It's one that I wanna own, but I just can't do it right now. I'd rather buy something like Google or some other cheaper company. That's going to be a look at the earnings report so far. Make sure you subscribe to the channel to see my reaction to Amazons and Apples.