Welcome back everyone. Today on details of Carlson Show, Meta's fast growing competitor to Twitter threads that reached 100 million users after only a couple of days. Well, user engagement is now reportedly dropping like a rock. It's down 70% from its high. We're going to take a look at
what's going on with threads. We also have some interesting news that Sergey Brin, one of the original founders of Google, as apparently back in the trenches working again at Google, specifically focused on AI projects. Why did he return? Why is he focusing on AI? What does this mean with Google? We're going to be taking a look at it now. We of course had this week kickoff earnings with notable companies, Tesla and Netflix
giving their earnings. We have interviews on Netflix with Tom Rogers and we have Dan Ives giving his commentary on Tesla. So be looking at both of these interviews and seeing what we can learn from this week's earnings. And then of course, it's Friday, which means we turn to TikTok and try to get the insights from the best investors, the best financial advice on the web.
And in this case, this woman here is going to tell us how to turn an incredibly small amount of money into a much, much larger amount of money. I show you how I turned my initial $300.00 investment into well over 6 figures in a span of two years. A $300.00 investment into over 6 figures in less than two years. That is a rapid rate of growth that puts her into one of the best investors in the world, so I'm excited to go through this one. Now, this has been a really fun week.
I love earnings season because we get a check in on these companies, see how they're doing, see if they're compounding or if things go wrong can. It brings a lot of excitement and fun into investing, but it's also very informative. Now this week for me has been a great week. My companies, I think have done
really well. Granted, most of them themselves have not reported earnings, so next week is going to be the real test for My Portfolio. But as of the past five days, this portfolio, my main one, is up 1.73%, outpacing the S&P 500. I'm very happy with the performance here. We're making gains, we're layering gains on every single week. Now if I look at this on a case by case basis and see what happened over the past week, we
can just take a quick glance. S&P Global made good gains 2%. MasterCard was one of the outliers, down .4%. I'll forgive MasterCard for this past week, but it's one of the worst performers in My Portfolio. We have Intuit, which is making huge gains over the past month. It's up 3% just this week. Intuits, one of the newer holdings in the portfolio. I think it's a wonderful company. We look at the tech category. Microsoft is in the green ever so slightly.
We have Apple up 1.32% over the week. In the real estate category, we have my biggest gainer for the week, up 4%. In the consumer category, we have my main holding care, Costco, that's up 2.39%. Texas Roadhouse is hitting all time highs, going up 1.82%, hitting prices above $116. Starbucks is also making some gains. It's up 1.16%. And then even the railroads. I've been waiting around for these companies to do something and they're finally making some gains. Canadian Pacific is up 1%.
Union Pacific is up 2.38% over the past five days. In the past week, that's the combined $8500. Now, we don't want to get complacent here. A lot of these gains are from market momentum, from bullish sentiment, from people that used to be in cash now piling money back into the market. So we have to remain cautious and on guard. And if you know me as an investor, I become very almost nervous and cautious and
concerned. When things seem too good to be true, when stock prices are racing up, when the portfolio is surpassing 10s of thousands of dollars seemingly every couple of days, that's when I become nervous. I get a little bit of a grimace face hair when things are going down, when stocks are going in the red every single day, when there's continued downward momentum, that's when I become very greedy. I get excited when that happens. That's what I'm doing. Big buys.
That's what I'm depositing money that's in my savings account to buy and scoop up companies at lower P/E's and lower free cash flow yields. But right now I'm in the nervous mode. I'm a little bit cautious right now. I'm just feeling like investors are a little too bold this week. We're a little too aggressive, so I'm remaining very cautious. I'm watching my companies closely. I'm looking at the fundamentals
and the intrinsic values. I refuse to have FOMO or get swept up with the excitement of the herd. And if you watched my previous video, you would see that I created a chart here that had my valuation estimates, what I assume is the intrinsic value of each of my holdings and my watch list. And I'm still referencing this. Again, next week is when most of the companies report their earnings. So we're going to get an update on this and maybe we'll get a big sell off, maybe we'll have a
big pull back. I'll be looking at which company pulls back and I might buy an aggressive amount of that company. Maybe it's on my watch list. If all the companies in My Portfolio do really well and we don't have any type of pullback and we have a good one and one of these companies on the watch list, I may add these as a new position to the passive income portfolio. So this next week is going to be a very busy one.
You're going to want to tune in. I'm going to have a lot of videos on earnings reports, reactions to them, what I think has happened with these companies, the intrinsic value, the fundamental direction, we're going to be covering a ton and ultimately I'll decide what I'm going to be doing with this cash. So make sure you're tuned in next week, make sure you're subscribed with the Bell notification. So I look forward to the busy
earnings week ahead. Now moving on to some news we have, we have some a little disappointing news for meta investors. I'm sure this one's not going to be met with a lot of enthusiasm by meta investors, but unfortunately Threads, the socalled Twitter killer, is having a bit of a pullback in engagement and usage. The report states that for the second week in a row, the number of daily active users has declined on threads, falling to 13 million, down from around 70% from the July 7th peak.
It shows the initial peak of the honeymoon period of excitement and curiosity. What is this new threats? Is it better than Twitter? How does it function? Does it have a nice animation? It all looks interesting at the beginning, but then people started to go right back to what they're using before. If they came from Instagram, they went back to Instagram. If they came from Twitter, they started going back to Twitter. It's down 70% from its peak, down to 13 million daily active users.
It raced up to 100 million registered users, which was incredible growth and a lot of people thought it would overtake Twitter right away. But the amount of daily active users is much more important than the total number of registered users. Registering just takes one step. Using the app every single day is what's really difficult to accomplish. The average time spent is also declining on threads. It's decreased by 4 minutes down
to 19 minutes on average. Twitter, on the other hand, has daily active users remaining steady at around 200,000,000. So Twitter has around 15 times the daily active users that Threads has. So a lot of people that thought it would instantly overtake it. It doesn't seem like that's happening. And even though Twitter has 15 times the daily active users currently the average time spent on Twitter is 30 minutes a day, which is a good 10 minutes over
threads. So people are using Twitter more and they're using Twitter longer. So let's just do an examination of what went right here and what went wrong. The first thing that went right here is Mark Zuckerberg timed the release of threads really well. He saw weakness in Twitter. Twitter was rate limiting people at the time. It caused a lot of bad blood with Twitter users. They did not like being rate limited.
Even though the rate limiting affected less than 1% of Twitter users, it was still frustrating to a lot of people. Threads was released right during that time period. They took advantage of a weakness in Twitter and they got
the influx of users. But the big problem is they rushed it out ahead of schedule and they don't have many of the features in parity with Twitter. They don't have advanced searches, They don't have chronological feeds, They don't have tickers that you can search in and out. They don't have a lot of the basic support that Twitter has.
For a lot of those reasons, including stuff like not being able to direct message people, Twitter became preferred again very quickly after trying out threads and that's where we see the decline and users now. A lot of this is expected with any type of huge viral boom. Typically, it doesn't just continue to go up in a straight line. You can see some big pull back after the initial reaction, after the initial interest in the app.
And in my opinion, if I was a met investor, I would not be too concerned about this. I think it's just a temporary thing for them. They'll continue to build usage over time as they stabilize and grow new features in the app. But the big message here is that network effects are real. They are very, very difficult to overcome. When a lot of people use a certain thing, it's very difficult to get them to stop using that certain thing. Twitter has stood up to many competitors.
Many new Twitter clones have come out. Meta has positioned themselves as by far the biggest threat, and even Meta is struggling at fighting against those strong network effects. So when you look at your companies and your portfolio, consider the network effects your companies have. Why is MasterCard such a great company with such a significant Moat The network? They literally have network effects. So many people use them because so many people use them.
The same thing with S&P Global, The same thing with Intuit. And their software network effects are everywhere. They provide tremendous moats. The moats can be broken, but it's very, very difficult. Now, we also have a bit of surprising news here that Sergey Brin, one of the original founders of Google, a guy that's worth nearly $100 billion, is back in the trenches working at Google. He has worked closely with a group of researchers building Google's long-awaited AI model, Gemini.
They have discussed technical matters such as lost curves, a way of measuring an AI program's performance, overtime and Brim has convened weekly discussions of new AI research with Google employees. He also has intervened in personal matters, such as the hiring it sought after researchers, according to people familiar with this matter.
Now, obviously something around this project has caught Bren's attention because if you're worth $100 billion, you don't have to do anything that you don't want to do. So he's doing this just because he's interested in it. He wants to help out with this. Gemini is Google's attempt to build the general purpose AI program that can rival Open Ai's ChatGPT 4 model. And they're saying that this program will be available later this year.
Now, I don't know that Brin's presence here will be extremely impactful. I don't know if he's an AI expert. He's obviously very intelligent, so he's probably going to help out with the effort. But I also think it's a show of support of how important this project is, Something cool enough to make it so that someone that's retired worth a ton of money, has a great deal of interest in this and is willing to go back to work.
So Google's still pushing forward heavily with AI, and I'm excited to see what they come out with later this year. Now, Next up, we have Netflix's earnings report. I've made a previous video about this because I thought that the earnings report was very good overall. I thought it was a very strong report. Netflix gained 5.9 million new subscribers. That's a very good number of subscribers. They beat on their earnings by a decent margin. They slightly missed on their revenue estimate.
But when a company has this big of expectations going into earnings, when it has the type of run up that Netflix has had this year, it's very difficult to surpass expectations. The company's literally up 50% just over the past couple of months. So it's trading down a little bit, giving up some of the prior gains going back just a couple weeks. So despite the sell off, I actually believe that Netflix's earnings report was pretty
strong overall. Now we have Tom Rogers on CNBC who has been someone that so far has been spot on on Netflix. He's really made all the right calls with this company. Let's step back a minute. Contrast that earnings call with the Eiger interview with David Faber last week and it's it's. Night and day, you're talking about a company with Netflix that just doesn't have to deal with the burden of decline.
And what happens when your current business model is thrown up in the air and you have to recreate a new one. This was all forward-looking. It was about accelerating revenue. It was about increasing margin increase. Using cash flow, it was all
about growth. And you can really contrast that with the very difficult situation of the legacy media companies made worse by the strike, as you say, he points out something that's been a struggle for Netflix's competitors, Disney having the legacy media business being a huge problem for the company, to the point where Disney's Bob Iger says that he's considering selling off that portion of the business. Netflix doesn't have to worry
about that. Netflix is just worrying about future growth, future profits, future margins. Well, I didn't have any question about the Netflix model and obviously as you know on this show I pointed out the, the problems on the legacy side for a long time even as those stocks were we're doing much better I think the.
View here on Netflix was that they had let a problem grow well beyond that they should have with 100 million viewers around the globe taking the product for free and they finally decided to crack down and I think the the headline coming out of that is the crackdown. A lot less noise to it than many people expected, meaning it's implemented. There isn't a huge amount of pushback. They obviously got a lot more Subs out of that than people
thought they would at first. And with that, to Joe's point, hey, is this A1 not time phenomena or is this something that's recurring? What you got to remember about streaming services is that they all have a lot of churn. Netflix a lot less churn every month and most, but still on an annual basis close to 25% of subscribers come off. But they do come back when they want to watch something. And now when they come back, that lowcost ad free tier at 999
isn't going to be there for him. And so the thinking is that they're going to come into the ad tier. And the ad tier, because of the additional ad revenue that comes with it, has a lot more revenue behind it. And so there's something going here that looks like they can really grow revenue substantially and that's something that the other guys can't easily point to. That's a great insight there and something that I didn't put together myself. Subscription companies like
Netflix have constant churn. Churn is the amount of people that leave every single month or every single year. So they're always losing customers every single day, but they're also always gaining customers every single day. The net new subscribers is simply that loss and that gain netted out. Hopefully they gain more than they lose, but as people churn and they turn away from that $10 per month non ad version of Netflix, if they ever come back,
that plan no longer exists. For new signups, they have to go with the ad tear version at $7.00 a month that has an average monthly revenue of 15 with the ads. So Netflix knows that they can make more money this way and they're using the churn cycle to their advantage. It's almost like a sneaky way of doing a price hike. They're basically hiking the price but only for new customers. So I think Netflix will be able to reaccelerate some revenue growth.
I think that they have immense operating leverage. I still remain very bullish on this company. Now let's go ahead and move on to Tesla. We also had their earnings report this week. The stock has, likewise with Netflix given up some gains after earnings. So investors weren't they weren't fully satisfied with it. Although Tesla's another company that's up huge this year, so giving up a little bit of gains is not a huge concern for Tesla investors right now.
But we have Dan Ives reaction to the earnings report 3. 50 so you actually raise. Even though the stock is down and the market's worried about more price. Cuts Why I think investors aren't seen far should be trees right off the bat. Dan Ives actually raises his price target for Tesla after the company reports earnings and the shares drop in value. This is something that I like to see from an analyst, because it means that they're actually
sticking to their guns. They're not simply following momentum. They're not simply following the current price of the company. He's raising his price target even though the price of Tesla's going down. Because often what's happening here, we're seeing a stabilization from margin perspective better than expecting in terms of auto gross margins. Now I'm going to pause it right there, he says that we're seeing a stabilization in the gross margins of auto.
This is always my big concern for Tesla, the margins of the company. Auto companies do not have great margins and if Tesla's like an auto company, we should see the margins decline overtime. Now we are seeing that over the past year it's declined from 25% down to 18%. So margins are declining as they have to lower prices to deal with the interest rates going up and further competition. But he notes that the decline is starting to stabilize, only
moving from 19% to 18%. So going down 1% quarter over quarter is not quite as bad. It's not two or three percent drops every quarter, but we also have the operating margins of Tesla coming in at 9.6%, dropping from 11.4 last quarter and all the way down from 17.2 and Q3 of 2022. So it's a pretty sizable drop in operating margins year over
year. Now to the Tesla bear, these drop in margins are an indication that Tesla is overhyped, that it's really a car company subject to all the market forces, all the extrinsic factors that normal car companies are. This is further confirmation to the Tesla bear that their thesis is playing out. Tesla cannot remain with its pricing power while it has these competitive and economic forces. To the Tesla bull, this is
simply margin stabilizing. The forward outlook looks really good and this is also the troth margins. Margins from here are going to continue going up in the back half of the year. So this is one of those situations where whether you're a Tesla bull or a Tesla bear, you can get from this report what you want. You can look at the good or look at the bad and form a logical conclusion. Either way, Dan Ives is
obviously still bullish. We're seeing a stabilization from margin perspective better than expecting terms to auto gross margins. You look at units right now, they aren't introjectory toward 2,000,000 and then this is the drum roll the Super Bowl to now what I believe is monetization of supercharger battery. And I think last night the biggest thing from the conference call, FSD talking to another OEM because this from an A I perspective is ultimately
how I see Tesla getting to a trillion and 1/2. 2 Trillions So there he goes, outlining the bull case. This is troth margins. You have full self driving which is going to be the big gainer for Tesla. What's going to turn this company into a multi trillion dollar stock? Now one thing that stuck out to me that Elon Musk specifically said on the earnings call of this latest Tesla quarter is something. I just can't let him off the hook for it. I have to call this out on the earnings call.
He says that autonomy will make all of these numbers look silly. I recommend looking at ARC Invest. I think their analysis is very good. It's the best. And generally Fin Twit or the finance smart finance people on Twitter follow their accounts. They're great. So that's in my opinion where you'll get the best info. He directly mentions ARC invests research as being the place to get the best info on Tesla. Arc Invest now is the best place to get our research.
ARC Innovation ETF has been a disaster. It's had incredibly high levels of volatility with incredibly poor risk adjusted returns by almost any measurement. The returns have been haphazard unpredictable over the past five years. It's returned 7.65% in a five year period where the S&P 500 has done 61% with dramatically less volatility. And he's pointing to ARC Invest is where you get the most credible research on Tesla.
So maybe in the future autonomous vehicles will make all of these numbers look silly, but I can't predict that, and neither can ARC Invest. They've shown for a long period of time that their predictions are akin to throwing darts at a board. Now, of course, as it's Friday, we have to turn to TikTok to get the best financial advice.
This is where you get it. This corner of the Internet is full of different ways to generate massive amounts of wealth, and this woman has a way for us to generate a lot of wealth very quickly. Let's go ahead and listen to her plan. I show you how I turned my initial $300.00 investment into well over 6 figures in a span of two years by simply doing compound trading. Now this is embarrassing for me because I've never heard of compound trading before. I've never heard that term.
I have heard of compounding machines, companies that build their earnings and their cash flows over long periods of time that have resilient business models, but they certainly don't give the returns that she's talking about here. You're not going to turn $600 into 100,000 in a couple years buying compounding companies. So let's go ahead and see specifically what she's talking about. So if you. Started with $300.00 and you grew it 2% every single day for 260 days.
You're going to end up with over $11,000 in your trading account. Let me go ahead and just pause it right there and rewind just a bit. She just outlined the plan right there and I'm surprised I didn't think of this. I feel like a fool for missing out on this very simple, reasonable, achievable plan. All I had to do all this time was simply grow my account by 2% every single day for 260 trading days. That's it. How did I not realize this a long time ago?
Why am I worrying about investments that grow earnings and intrinsic value when all I had to do is make 2% gains every single day for 260 consecutive trading days? That seems like a much easier path. Now you might be saying, Joseph, that's crazy. That's statistically impossible to accomplish, but that's where you'd be wrong. She explains how to get these 2% daily gains. And I know you're like, OK, but
that's not six figures. Let's take that initial investment plus the gains that we made in year one and reinvest it for a second year. But we took that 11,000, almost 12,000, and we throw it back in to compound it again for a second year. We don't take out any of our profits and we keep trading for 2% every single day. The second year we end up with over 6 figures. That's over 400 K compounded into your trading account. It seems like she understands the principle of compounding
really well. She's outlining it right here. What we're lied on so far is details of how to accomplish that 2% daily compounding you're. Probably sitting there like OK that's cool, but I have no idea how to trade like 0 knowledge ground level beginner. There are softwares out there that you can leverage to actually give you those type of results being a complete beginner having zero knowledge in the financial markets. One of them is called Menara and I talk about it all the time on
my platform. OK, so you have to sign up for this platform that will enable you with 0 knowledge to get these 2% daily gains. Now she also goes on to outline that you need certain characteristics to accomplish this 2% gain per day. You need to have a lot of grit, a lot of stick to itiveness. You need to have a very
motivated personality. But if you think that you're disciplined enough and you're willing to stick to a trading plan that you build for yourself, or you want access to my Tuesday trading call where we take trades together, mark up the charts together, I show you how to utilize the softwares, shoot me a message on Instagram, and drop your questions in the
comments. Now, I'm personally very excited to start this daily, compounding this trade, compounding that she's talking about and starting with $500,000, that gives me a little bit of a head start. For example, if I compound my money one year, 2% every day for 260 days, that leaves me with $86 million after a single year. That's pretty exciting. That's probably enough that I can finally retire on that
money. And if I implement this strategy with my 86 million for another single year, just another 260 days, I'll have $14 billion. Fourteen billion. I'll be one of the richest people in the world. And if I do it for a third year, only after three years, I'll have $2.5 trillion. I can get to the point with this daily compounding strategy of being able to pay off the national debt. So I'm very excited about this.
If I implement this strategy for three or four years with these returns, I can start to pay off the US national debt. That's all for this episode. I'll see you in the next one. I can't believe it.