00:00 Speaker A
I think there’s just a lack of clarity around the revenue engines of beyond uh the advertising business. If you look at Google, right? They have YouTube, YouTube TV, uh they’ve got Waymo, they have all these other engines, um beyond just the advertising business. They obviously built their own frontier AI system. And when you look at Meta, everyone says, okay, I under- understand Instagram, you know, Facebook and and core messaging, but like, what else do I have? Are are glasses, the Ray-Ban glasses with from, you know, Carly Jenner going to going to drive this? No. Um what happened to the compute business? Uh there’s been a lot of concerns and questions around what are they going to do in compute? They didn’t really address that. Uh are we going to have AI agents?
00:54 Speaker B
You talk about all these other revenue lines that they’re working on, like the advertising revenue, that’s work, I mean, that that and that’s the vast vast majority of the business. That does seem to be operating well, right? And benefiting from some of these AI elements. I guess what you’re saying is just even that could be uh optimized even more and and we’re not getting enough from them on that.
01:21 Speaker A
Yeah. I I I think the core is is executing, but it’s kind of like, you know, you have a great guitarist in a band, but you need a lead singer, you need a drummer, you need you need other parts of the band to to make it make it sound really good. And I think the point is when I gave you, when I give you the Google story, and I can give you the Microsoft story and tell you apps is accelerating, infrastructure is accelerating. They didn’t waste all their cap backs. They’re showing continued good margin. They uh uh are are are unveiling all new product new product lines and usage base and all these other things that they’re doing. and you compare and contrast that to Meta, everyone’s like, well, wait, why aren’t they doing more of this? So, again, it’s it’s not that the core advertising business isn’t good. It’s fine. It’s just investors are going, well, what what else, what are the other engines that are going to drive the next three to five years of the story, not not just continued advertising growth. Right. Um and that’s what I think when you go back and you look at all the engines of growth at Google, all the engines of growth at at at Microsoft, that that is what was catching investors’s eyes right now. Um so, I think Meta’s capable. I don’t think this is a situation where they don’t have the right properties or they have the strategy or whatever. They just didn’t show uh and demonstrate to investors this quarter where those engines are coming from.
