Earnings Watch Party: Microsoft (MSFT), Meta (META), and Tesla (TSLA)

Hello everybody, we're going to get started right on time today because a lot of the news has already broken. I'm excited to be here with you today. I'll be honest, this was— this, uh, earnings watch was, was not my idea. One of our marketing consultants said, hey David, why don't you host a session to talk about these earnings releases because, you know, you have a very different take. And I will tell you, absolutely, I think these earnings releases and company conference calls are commercials to sell stock. They are another way to push the narrative that is often misguided, untrue, and flat-out unfair. And, and that's my take. And, you know, interesting, today we've got some of the biggest stocks and some of the strongest narratives out there. Let's start with Tesla. Let's just jump right in because they've already reported. Things got going a little even faster than we expected today. And what did we see with Tesla? Well, we saw what our model said we would see, which was a major miss on both the top and bottom line. How did we know this was going to happen? Well, let me show you in our, in our system here. I created a portfolio. I went to the portfolios page. I created a little special portfolio for Earnings Watch, and I put Tesla, Meta, and Microsoft in here. We've got Meta open. And what I went in here and first looked at was, all right, what's my earnings distortion score? This is our near-term indicator as to whether or not the company is going to beat or miss or meet. And so we see strong miss. What does that mean? Well, that when we come down here and we look at the earnings distortion tab, under the rating here, and this is available to our institutional clients and I think professional as well. What you get to see is how reported earnings compare to the actual real core earnings. Now, core earnings is our number that is most analogous to sort of the popular numbers on the street, the Wall Street estimate, the reported earnings number, the number that people talk about. That's not economic earnings. Economic earnings is different. NOPAT is different. Economic earnings is really the all-in number. That's the number we think that matters most, but we needed a number that was like a clean number to compare to what everybody talks about. So we can do things like predict a beat or miss. And here you can see a major divergence between reported and accounting earnings. And that is why we're seeing a strong miss. Why is that? It's because Tesla is boosting its numbers with face— with fake revenue. And fake earnings. Those of you who are familiar with our research know that we've been pointing out for a long time that this stock is super highly valued. And those of you who saw a recent piece on Nvidia, how DeepSeek is sinking that stock, DeepSeek is sinking that stock. You know, look, the, the valuations— nobody argues. I don't think anybody argues. And by the way, please jump into the chat. Jump into the Q&A if you've got any questions about what we're talking about here. But nobody argues that the valuation of a lot of these stocks is ridiculous. The question is, how long is it going to stay ridiculous, right? It could stay ridiculous for a long time. And that's really just all that all comes down to. What is your risk-reward? What is your risk tolerance? We talked to a big client yesterday, renewal. And you got to love clients that say every time we go to them, we say, yeah, the price is going up. And they thank us at the end. For how much money we save them. Thank you for not having— making me have to hire 20 people, David, because that's what it would take for me to get the answers and the information you give me. But we were talking yesterday with this guy and he's like, I got a client and he's got one stock in his portfolio. It's Tesla. And he called me and he said, should I sell? And my client was like, you know, I'm not going to tell you that. And, and, and so, you know, and we're not, and we're not advisors here at New Constructs either, even though that client is an advisor. And I'm not here to tell you how to time the market. I don't believe in timing the market. I think timing the market is for suckers. For people who want to actually understand fundamentals, that's a different thing. That's what we're here to do. And to be honest with you, as we go through these earnings reports, I'm starting to believe, you know, having been in the markets for 25, 30 years now, That in the same way we have now recognized so many false narratives in the marketplace, whether it's COVID, whether it's this or that political China, Russia, we know that we have been inundated as a society by bad actors trying to influence people, whether it's children through TikTok or Snapchat or Instagram, whatever. We know that's happening. We see it all over in society. We know that consumer goods companies want us to eat things that are bad for us because that's how they make money. Right? And, and what I want to introduce here is the idea that maybe the same thing is going on in the stock market in the same way that China sees our right to free speech as an Achilles heel that they can attack to push all kinds of false narratives in our society to make us so divided. to have the left so far from the right, to have riots, to all these things. Maybe they're doing the same thing to corrupt our capital markets. Maybe they want us to, to bid up stocks that don't deserve our capital and bid down the stocks they do. Maybe they want to undermine the viability of our capitalist system by undermining the integrity of our stock market. Just saying, I think they are. I think that's part of why we see so many stocks— quantum computing stock, we're about to publish a report Later today, just showing how ridiculous these stocks are priced. We do it all the time in our reverse DCF case studies for our professional institutional clients. We go through and we break down what the future performance has to be to justify the price. And when we did that for Tesla, we've been doing it for a long time. Let's go, let's go back to here, 2022. And we look at, you know, the trend and a lot of things. Look, we've seen issues with Tesla for a long time. But one of my favorite parts in all these reports Is to talk about how the valuation makes no sense. And we do this with simple math. Real quick question about economic earnings. Is that the same as what Warren Buffett refers to as owner's earnings? Correct, it is. Good question. What we'd like to do is like just back into the number of cars they got to sell to justify the valuation. And this was back when Toyota or Tesla was at $200 a share. And I don't know if this is even split adjusted. I don't— I'm not sure. This was in 2022, so you guys tell me. It may have split since then. But in back then, to justify that price, what we showed is that the— they'd have to sell the following number of vehicles based on average selling price benchmarks. At their current average selling price, that was 12 million vehicles. At $40,000 average selling price, that's 16 million vehicles. Or $21,000 average selling price, 30 million vehicles. That's of the entire EV market, what the EV market was expected to be in 2031. That's— this is the market share that's implied. So it's absolutely nutty. Absolutely nutty. Let's see if we got a more recent version of this analysis for Tesla so we can maybe make sure we're apples to apples here. Or we, you know, what we might do is we'll just open up a model while we're talking about this, do this analysis live. So let's go here about a year ago. That's not— this is not going to have that analysis. Here's another way of looking at it. This is at $290 a share. Right? And, and whereas Tesla's now is like, you know, close to 400, this is the implied, the implied return on capital for Tesla at $290 a share. You can see it means it's going to have a higher return on capital than Apple. Anyway, we can do a lot of work on this. We've done this many times. Here's the reverse DCF math at $290 a share and the implied Here you go, $290, $293, and $26 a share to generate more profits than Apple making. That's, that's the, that's the profit level implied. There's Apple. This is all, all the incumbents combined, etc. And at $290 a share, we pointed out that at the average selling price, current average selling price of $40,000 per vehicle, You're talking about 59% of the market. What is my point in all this? My point in all this is that when valuations get nutty, look out below. I don't know how else to say it. It's, it's, you're just taking on risk. You're taking on a crazy risk. And inevitably, we live in a world where there's competition. And the, when, when companies are priced as if they're going to have monopolistic market share, Just as we wrote about with Nvidia. What did the DeepSeek thing reveal? Nvidia is not going to have a monopoly. And it reveals that about a variety of other stocks as well. But if you're not going to have a monopoly, you can't justify this valuation. And at some point in the future, I can't tell you exactly when. Again, I'm not a market timer. At some point in the future, the narrative is going to implode. And I would imagine that if we reran this analysis now, if at $290 a share, We were looking at 59% of the expected vehicle, electric vehicle market being owned by Tesla. I would imagine, you know, we're close to like 80 or 90%, and that's at a $42,000, $47,000 average selling price. I don't believe they're going to be able to maintain a $40,000 average selling price at 31 million vehicles. That would be amazing. I think if you put it down to the average new car price, which is what they've got to be and they've been trying to do, and that's been part of the narrative from Tesla is that hey, we got to get the price down to make it a mass market product, you're talking about 51.6 million vehicles or 98.5% of the market. So, when we're talking about Tesla missing on the top and bottom line despite deep discounting, seeing a fall in revenue, look, the narrative is unfolding. We've been talking about it for a long time. And look, we're just not a buyer. We're not a buyer. We're not a believer. And we believe that this is a stock that is been seriously overpriced, and it's only been a matter of time before this thing's going to come falling back down to earth in a, in a big, big way. Unattractive rating. The only thing that looks good about this is the return on capital, and that's— I think it's because they've been bloating their, their top line and underspending on R&D in, in an, in an attempt to try to get earnings up. As you can see, economic earnings compared to accounting earnings looks a lot like core earnings except even worse. Economic earnings headed down, the They were looking a little bit better for a while. The business was doing better, wasn't terrible, but it's back to negative economic earnings. They broke even on economic earnings for a short amount of time, but it's going back down. Competition is coming. And look, the cult of personality that is Elon Musk, he cannot make money out of thin air forever. He's certainly done it for a long time, and he's done it with Tesla for a long time. And that that can't continue. Let's talk about Microsoft. And again, throw your questions and comments into the chat or the Q&A, and I am happy to take them. I think this makes it more fun when we get more folks in there. Let's take a look. Yeah, what's Tesla doing after hours? Good question. Yeah, I'm showing it up 4%. So, you know, this is one of the things that's been confounding about Tesla. We've been joking about this for years internally at New Constructs. It's like, yeah, Tesla's got a bad quarter, but he talks about sending sending, uh, a rocket to Mars and everyone just forgets about it. Yeah, I, I don't know how the stock could be up on that kind of news after hours, but I do know that it is in the best interests of the enemies of our country for capital to flow into companies that don't deserve it and, uh, away from companies that do deserve it, because the capital markets For the United States are probably one of our biggest, if not our biggest advantage versus the world. It's our ability to take capital, you know, certain amounts of capital and grow it into better things, right? Technology, innovation. We do that better than anyone in the world. And when that mechanism is undermined, handicapped because capital's going to places where it can't earn, it can't create value. Because when capital goes into a stock like Tesla, That implies evaluation as it does. All you're doing is sending money to Elon Musk. You're taking money from the pockets of taking pennies from the pockets of many and putting into the pocket of one. And you know what he does with it. You know, depending on what you think, he's maybe doing a great job with it, but he's certainly buying a lot of influence. And I don't think that that's healthy. I don't think that's healthy. Another comment here: Is the valuation crazy because most investors do not care about fundamentals? Sorry, I'm not going to be able to read all the comments or maybe get to all the questions, but keep, keep them coming in. Yeah, no, I think that's right. I think a lot of investors don't care about fundamentals because they say stock price, bro. I've heard that for years. And is that in the best interest of the enemies of our country? 1,000%. Is it in your best interest to focus on fundamentals? 1,000%. I believe that. I believe that if you focus on the fundamentals, it may be hard today. It may be hard at the cocktail party with the doofus who's bragging about his stock portfolio, probably not telling the truth. But in the long run, it's what you can put your head on your night— head on your pillow at night and know that you've done the right thing. It's how I feel good about my business and my career, my contribution to society. I'm here to provide truth. I'm here to provide people the ability to make smarter decisions, to allocate capital as individuals and in aggregate as a society in a way that is in the best interest of our country and our descendants, my children and my potential grandchildren. Yeah, you know, they're doing all kinds of things to boost numbers, including extending the life of certain assets. This is a great comment here, very insightful. Extending the useful life is always something that we like to red flag as well in our system, because the useful life of an asset, when it's extended, that just means your depreciation costs go down. Doesn't affect the economics of the business, affects the accounting. It's a way to juice numbers. Artificially enhanced numbers, and it's a and and it's it's false. And yeah, we're seeing that quite a bit lately. All right, enough on Tesla. Let's look at Microsoft. How's it doing? They reported it's down after hours. What does our system say about Microsoft? It's also unattractive and has a rating that's similar to Tesla. But what I will tell you about Microsoft is this is a really good business. All right, economic earnings, maybe not as good as accounting earnings, but they're very positive. Return on capital, really high, has been high for a long time. And you can see economic earnings pretty steadily up and not, not taking the downturn that, that Tesla is. Uh, return on invested capital, if we go back over a longer amount of history, returns on capital at Microsoft— let me open a model here, we'll look at that in a second. But returns on capital at Microsoft have been even higher than this, but consistently. They're down here recently, seeing a lot of competition, having to spend big money on AI, blockchain, other stuff. And that's— look, that's just— that's the way it is at the end of the day. But their economic earnings are huge, are huge. And you can see on a per-share basis, you're talking about $7.50. Uh, that's a— that's a big big number on Microsoft. What's the headline in terms of shares slip slightly on light quarterly Azure growth? They beat the market, but they dropped after, after the company issued its report which showed Azure cloud growth slowed, slowed slightly. You know, this is a good example. We talk about sort of the tale of 2 stocks, right? Tesla misses, and who knows what the guidance is. I mean, he's guiding that like that on a robot, and people buy the robot thing, right? Even though it gets debunked within like 2 hours that the robots were controlled by remote control, or it's a robot that's a woman dressed up in tights and dancing. You know, I have a hard time with that. Keep in mind, if you're raising your hand, that doesn't help us. I need you to put a comment into the chat, or if you're typing in the chat, I can't see it. Into the Q&A, but raising the hand doesn't really help us. So please put the— please put your comment in there. Let's take it— let's take a look at free cash flow for, for Microsoft, because that's something that has also been really, really impressive. You see $40 billion, $31 billion, $24 billion, $24 billion negative here recently. Big spending, big spending, and, and, and, and that's dragged it down here recently, but typically a very large free cash flow Generator, but you know that's why we're seeing returns on capital decline here because we're seeing invested capital. You know margins have been strong. You can see here margins at Microsoft doing great, but they're investing. And you know look there's going to be a lag here. It's going to be a lag. We'll see returns on capital dropping for a bit as they increase the cap, increase the balance sheet faster than revenues are growing. But long term that should put them in good position to grow revenues because they're investing in the business and reinventing themselves. I think that's one of the things that. Microsoft has done well and shown over time. As we open the model for Microsoft, we go to the metrics page, we look at return on invested capital. We can go all the way back to 1998. They didn't really even have numbers, but like in 2001, 2002, look at this is, you know, 200%, 100% through the mid to early mid-2000s, 80%, 50%, 70%. Scrolling through here, you know, just recently dropped down into sort of the 30s and 40s, and then another good bit. So I would imagine that, and my expectation is that Microsoft, you're going to see Microsoft's ratings get better. So we'll see economic earnings trend up, we'll see return on invested capital trend up, and this is going to change the, potentially change the valuation a bit. That said, Look, the reason Microsoft is not on our focus list is because we don't see good enough risk-reward. Expectations are quite high, not as high as what we see with Tesla. Tesla expectations are way worse. You know, you've got a price-to-economic book value of -26.3 compared to Microsoft, it's just 3.8. That's pretty high, um, don't get me wrong, because we'd like to see that down closer to 0.5 or 0.7 or 0.9. But negative 26.3 is, is interesting, right? That, that means the economic book value for Tesla is negative, right? And that means it's the no growth value. The business is negative. What does that look like? What is— when we look at economic book value, you can see here economic book value for Tesla has really barely ever been much above zero. Got up to 22.9 in that one good year. It's a negative 15.4. We want to know what's driving that because the NOPAT is positive. What people miss with the valuation of Tesla, one of the big things they miss, and this is in the— you can see the valuation section of our models here. There's $109 billion, $110 billion in liabilities related to outstanding options. So what does that mean about Tesla? And I'm sorry for spending so much time here. You think it's got $13 billion in debt. Why do they have debt? Because they're free cash flow negative, very free cash flow negative at Tesla. But on top of that, they've got another $110 billion in option liabilities. All those options that are out there, right? It's not just Elon Musk that that money's owed; it's the other investors. So that's that's dilutive to you as an existing shareholder today, or to you as a marginal shareholder in the future. So despite the fact they've got positive profitability, that is wiped out. The perpetuity value of their existing profits is wiped out by this huge increase in the option— in the after-tax liability related to after-tax options. All right. So yeah, I think between Tesla and Microsoft, you're really seeing a tale. You know, the ratings look the same, but I see honestly 2 very different businesses in terms of prospects. Now, the ratings look the same, and, and it's funny, you know, I say that and, and immediately I think, because some of the team, we're always talking about, should we change the rating system? I'm like, I don't know if we're gonna change it or not. But, you know, it's almost like we need another level for, for Tesla, because right now it's hitting the same thresholds, uh, in terms of valuation as Tesla, uh, even though Tesla's like in another atmosphere. Stratosphere, I should say, when it comes to valuation. And that's why for Tesla, we'll, we'll do long-form reports where we will more specifically quantify just how expensive the stock is and give you a sense of, of what a negative 26.3 price-to-economic book value ratio means. I think in this report on, on Microsoft back in 2021, we probably did some reverse DCF here. Let me see. What we said about this? Yeah, you could see that that the current share at $333 back in the day—that's what it implied. So, you know, not anything as crazy as what we've seen with Tesla. So if we if we assume that they maintain the same margin and they grow revenue at 14% CAGR. Then the stock would have had a bunch of upside back when we priced it. The current stock price back in the day, we said margins would stay the same and they'd only grow revenue by 8% compounded annually versus consensus at 14%. So that's why we were bullish when we wrote this report back then. Those are much lower expectations. I get it, that's a different time, but you get the idea. You want to buy stocks with low expectations, sell stocks with high expectations. When expectations are through the roof They're through the roof. Let's see, has Meta reported yet? Okay. For our last of the 3, gonna get your questions in here pretty soon. Let's talk about Meta. Did anybody listen to the Joe Rogan podcast with Mark Zuckerberg? It's actually pretty good. They maybe talked about jiu-jitsu a little bit too much. Don't get me wrong, I love jiu-jitsu. Pretty good at jiu-jitsu. I think I could take Mark, probably Joe too, but, you know, that's a different subject. Just kidding. But it was a good interview. And what I liked about it is, you know, when, when Mark is talking, it's very, to me, it's very down to earth and substantive in terms of what the strategy is. And, and he, and he's, and he gives, he gives examples, you know, how are we going to curate our platform in a way to keep really negative influences out there? Like, because it's, it's a problem. It's a real problem. You know, anyone who has children, And, and, and who's paying attention to social media knows that social media is, is dangerous. It is dangerous. My son was just on a, on a, on a sports trip recently, and his roommate, they were sharing, they were sharing a room and, and the night before a big wrestling tournament. And my son was telling me about his buddy who had a traumatic experience. He said, my friend went from, you know, the highest of highs to the lowest of lows in like a matter of 10 minutes. He said he was, my, my, my son was in the shower and he heard the, heard him screaming. I said, what happened? He goes, well, he was on Instagram, and at first he was seeing all these funny videos and it was great, haha. And he stayed on there, and next thing you know, he was seeing some stuff that was incredibly disturbing. I said, what do you mean? He goes, Dad, it was some AI thing. And, and my son was like visibly shaking. He's like, he goes, I don't even know how the kind of prompt you'd have to write to create something like that. And I'm like, yeah, I've told you, son, like, there's real evil out there. It's really evil. And, and these systems are designed to monetize our attention. And how do we monetize attention? Shock and awe. So they keep taking things to more and more and more and more shocking. Where does that lead eventually? It leads to bad places. Period. So Zuckerberg understands this. He's working on it. And he under— and he explained that, look, there's a trade-off. He says, look, when we have systems that flag bad stuff, we have a trade-off. We have a trade-off in terms of how we deal with false positives because we're never going to get it right all the time. But what I loved about, about Mark is, is he's talking about systems in the same way that we talk about systems, because at New Constructs, we have to— we can't read— we can't have a person read every single finding and every single footnote. We have to teach the system how to figure that stuff out. And that means, you know, it means getting smarter about what's a false positive and what's a real positive. And Mark was really specific about how he said, look, you know, we can change the, the knob so that we, we flag more content, we pull more stuff offline. But that— what that means is we're gonna be pulling off more stuff that's actually okay. And it's gonna look like we're censoring. So if we wanna come off as being— showing less censorship, we're gonna have to let more crazy stuff get through that we probably wouldn't wanna get through. That's, that's, that's honest. That's honest truth. That's what you gotta do. That's what a free marketplace is. If we're gonna really have free speech, it's not up to Microsoft or Meta or Google. Or Twitter or anybody. It's not up to them to curate our content. It's up to us to do that for, for us and our children. And, and, and the same is true for the content you take in for the stock market. What I'm saying about social media applies to the stock market. There are enemies, I think, of our country that want us to misallocate capital because it undermines our ability to grow. It undermines our ability to innovate. It undermines equality of life. Because what it does is siphon monies off to bankers and big CEOs while smaller— the rest of us smaller investors lose. We may think we're winning in the short term, but long term, I believe a lot of these investors that have gotten into these stocks at overextended valuations are going to lose and lose terribly. So how's Meta doing? After hours, close to 5%. I think also they settled with Trump. For a very small number, like $25 million for the lawsuit for taking them offline. I think that's part of why Mark has been so friendly towards Trump in the last few weeks, as have all tech CEOs. But yeah, when I look at Microsoft, I'm sorry, I look at Meta, I look at what, and I hear someone like Mark Zuckerberg speak, I don't know, I have more confidence in that person running a company well and doing right by shareholders. Just based on the specifics he talks about it. And look, he's not making stuff up. He's not talking about rockets to Mars. He's not talking about robots that don't exist. He's talking about real-world problems and how they solve them and giving us specifics on the challenges he faces. Specifics on the challenges he faces. And, you know, that just keeps it real for me. And I think that that makes a difference. So what does our model say on Meta? I know this has traditionally been a super profitable company as well. Maybe the website's getting overrun. We can get it here if we need to. Yeah, great company. You know, I would say that, you know, expensive valuation, again, cheaper than even Microsoft, of course way cheaper than Tesla. But I would say, you know, Microsoft I think is one of the greatest business models of all time now, and the Office platform one of the greatest of all time. Clearly Office is under some significant attack. From Google Sheets, Google Slides, Google Docs. I know a lot of the younger folks in our team here use it. I use it more and more. There's some definite benefits. Yeah. And, and, and so Microsoft has not really completely reinvented itself. One of the most impressive things about Facebook from the beginning was how it reinvented itself constantly. It forced people to deal with change on the website. I think Mark had seen what had happened with Oh, what were some of those other sites? MySpace, you know, those had clearly not innovated in the way that they needed to innovate and were, of course, boom, obsolete overnight. Mark has done that and consistently done that. And you can see really strong profits. And I, and I think that this business model when it comes to AI is one of the strongest because you can see they've kicked up their capital spending. For AI and for, you know, virtual reality. They're doing all these things like they've kicked up the capital spending, and yet look, returns on capital and rising earning economic earnings per share. So that's impressive. Accounting earnings, economic earnings, both going up. I think this was the metaverse, maybe a little bit too much capital, but guess what? He owned it. He pivoted. Has Musk pivoted away from the robot? Or from a lot of the other outrageous stuff? No, he just keeps doubling down on it. And it's, it's, it's unfortunate because look, there's no question that Musk is a smart guy. Is he really trustworthy guy? I don't know. Hard to say. So yeah, look, returns on capital consistently high as well. I think if we open the model on Meta, I wonder how high return on capital we're going to see for them over time. See, here's, here's a reverse DCF model we can look at for Tesla. Would be interesting. Can do some real stuff real fast. You can see this is, this is sort of my optimistic scenario. What does that mean in terms of revenue for Tesla? That means their revenue is going to be $2.2 trillion. $2.2 trillion is the implied revenue to justify $398 or $400 stock price. $200.2 trillion. I think that would make Tesla like the 9th largest country in the world. Think like the— something like that. Uh, what does it mean for its profits? Billion. You can see how that compares to what the company's done in the past. Like, it's just— it's like hockey stick straight up. Return on invested capital. It's going to get up to 617%. You know the number of times that we've seen a company in the S&P 500 with a return on capital greater than 600% in the last 5 years? The number of times a company in the S&P 500 has earned a return on capital more than 600% in the last 5 years? Zero. Never happened. So you see ridiculous revenue growth. What's the— what does it say the revenue CAGR here is? 30% revenue CAGR for 12 years, 30% compounded annually for 12 years, and an average return on capital versus cost of capital spread of 200%. That means it's getting up to 616%, as I mentioned before. And that's— this would imply $2.2 trillion in revenue. Anyway, you get the idea. Going back to Meta, you can see, you know, this is, you know, not as crazy. You've got 14.7% for 21 years. And a return on capital versus cost of capital spread. This is a neutral scenario of 44%, which is not nearly as crazy as what we see here. It's not as different from what we've seen them do in the past. It's a doubling. So yeah, it's expensive. I mean, that's what the rating says. It's expensive, expensive stock. Not as expensive, but you know, I would say one that deserves to be this expensive. New constructs, we like to buy cheap stocks. So You know, it's going to get an unattractive rating. I'm not saying it's it's a cheap stock, but you can see here in this neutral scenario, revenue for Meta is expected to be around 2.4 trillion. So yeah, that's a big number too, especially if we look at return on capital. What's that got to be in this scenario? It's like yeah. It gets up to, you know, that's not too bad. It only gets up to like 52%. I'm sorry, 76%. That's not bad. Let's see what the company's done in the past for terms of return on capital. Never been that crazy high consistently in the mid-30s to low 40s, mid-30s to mid-40s. Interesting. Okay. So I guess our takeaway today. You know, Microsoft— I'm sorry, Meta. Let's go in reverse order. Meta, it beats and it goes up, maybe because that's a popular stock and maybe they got this sentiment behind them. That's great. And I think that this is the market, you know, rallying, maybe not super strong, but on a company, you know, that continues to do well. Is it too expensive? Yeah. But could capital go to worse places? Absolutely. Microsoft, it's down on a beat, which is interesting. Not quite as much. People aren't as happy about Azure. You know, that's where it's kind of got to reinvent itself. But yeah, you know, at the end of the day, when a stock is this expensive, you've got to have really, really good news to move the needle. And then lastly here with Tesla, up on bad news. I think this is one of the sort of, you know, we would talk about a mind virus. How about the irrational capital allocation mind virus? It's been growing since I think the early 2000s. And it's really bad. And things like Roaring Kitty and meme stocks and meme coins is bad for our society. It's bad for our world. It's bad for our children. It's capital going to the wrong places. If that capital could go to a more productive use, we all win. We all win. We all win because that— when I say more productive use, that's somebody taking money and investing it into a business, a process, a technology that creates value. This is what makes sand into semiconductors. That's what we want to see more of in our society. Not going to somebody super rich who's just going to use it to try and wield power and influence. Not a good thing. Alrighty. Thank you very much for your time today. I am not seeing any other important or tough questions. One of our clients said they bought Meta when it was a very attractive stock back in 2022, so that has gone well. It was really cheap back in the day. But anyway, thanks everybody for, for joining me today. I've really enjoyed being with you. I think this was fun. We'll do it again sometime, and I wish you the best.