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they have money Starts Now hey I'm Kramer welcome Mad Money welcome to Great America hope you want to make friends we're to teach to discover to learn for over a decade TX talks led the market and we got so used to it that we forgot this group has often been a pariah yet that's exactly what techs become over the past year so it's time to face a few facts that nobody in Silicon Valley seems to want to acknowledge facts to display more than apps that keeps underperforming the other averages like today where the Dow inched up two points has to be dip 0.74 in the NASDAQ tumbled 2.04 percent as the guy who created the term Fang and then made it Fang which now stands for meta platforms Amazon Apple Netflix alphabet and hey why not throw a Microsoft for good measure I know why these companies used to be the crown Kings of the stock market they had little competition great growth and no real economic sensitivity but that's no longer the case hence the text reached aside over the past 11 months while there are moments when they can have a Resurgence Apple might report something good tomorrow this formerly gigantic cohort is no longer what it used to be which makes the market capitalization you're very difficult to justify even after these declines now there are four of us been well chronicled but it took the last 24 hours to rip the Shroud off of the glory of the acronym so let's take them down one by one with an idea towards what really has happened here because it's rather monumental first Define names are no longer secular growth stories many of them have no growth whatsoever they're now well Hostage to the Border economy or even to their own let's say incompetence last night Google told a story of advertising it didn't sound too different from what you might hear from say an old school television Company linear TV they were hurt by a lack of ads especially from crypto and mortgage lenders yeah I thought those would be small potatoes versus the ad Revenue they'd be getting from anything connected to travel forget about it the disappointing YouTube ad numbers should only get worse as the FED Titans in the end it's a cyclical business that rises and falls with the rest of the economy no longer is such a low price Journeys multiple we just heard something very similar from meta platforms that's the artist formerly known as Facebook today not only did they report mixed results with better than expected sales uh but also a huge huge shortfall here I you know what these guys may be delusional they just may be delusional the forecast for the current quarter was lackluster why the average price per ad is way down off 18 didn't help that CEO Mark Zuckerberg warned up steep losses in the metaverse division next year something improves proving to be a a real money pit hence why the Stock's plummeting it and I shouldn't say Plumbing hence why the stock is destroying everyone who owns it tonight what a nightmare just a hurricane of pain and you know what we've owned it forever for the travel trust they could make anyone even someone who's a big one a chump delusional Microsoft had plenty of growth from the remote work environment but that growth vanished because it's not like you need to buy a new pc every year although some people seem to think you had to the gaming division seemed lackluster again that was something you did during covet worst of all was the prediction of a Slowdown in Azure their Cloud infrastructure business that had been so strong I know Microsoft's actual quarter was excellent they'll tell you that from now after the cows come home but the forecast from CFO Amy Hood was ugly and she is not by the way in the habit of sandbagging us with global guidance so Point number two the endless claims that were still in the early Innings of cloud adoption can now be debunked you don't get that kind of slowdown in Azure if the Cloud's roaring to put it in baseball terms I think the Cloud's now probably in the fifth or sixth inning and they're way too many uh competitors I mean there are some like serviced now important good number tonight but they're few and far between now Google's spending a fortunes to poach customers their Cloud division from Amazon and Microsoft then they're going to do something just destroy everybody's profitability really if you're now just now hopping on the cloud bandwagon you're real late to the game and I'm sick of hearing otherwise although they will tell you because the denial out in Silicon Valley is palpable remember I did not say lie I did not say fraud I said denial third there is now so much competition with these companies the Chinese video platform Tick Tock is crushing YouTube just like it's laneway's uh Facebook I was taken aback by how much damage Tick Tock did the Google this is one of the greatest disruptors of all time this Tick Tock yet the CEOs of the big dogs seem totally oblivious or in denial about tick tock's power maybe they're arrogant now here's something you used to apply to people went to Stanford Business School and Stanford Computing and Engineering maybe they're idiots idiots fourth speaking of arrogance these companies with the exception I think of Apple have no idea how to read the room when you disappoint like alphabet or Microsoft you have to put it right up front you don't obscure the shortfall you don't tell us what a great quarter you had oh by the way and you're never you never say you're going to hire 12 000 people within a few sentences of talking about the need to tighten your belt like alphabet did pure U-verse it was embarrassing and Unbecoming hey let me tell you something you know what I said to be in a show it's not about friends it's about money well let me tell you something I don't even want a friend out there after tonight by the I I don't care if they hate me it makes me stronger by the way the idea that Google can spend money on anything and everything should be long dead plus the endless chunking up of search results to leading to search fatigue I mean do you ever try to use it anymore yes we all need Google but that no longer makes it a good stock as far as management goes I'll just say this if alphabet had gotten meme on a terrific with poor act took over CFO they'd be in much better shape now instead they've got a host of money losing side businesses I bet you a lot of the executives don't even know these businesses exist within their own companies it's almost like it's beneath them oh and let's make one thing perfectly clear meta like AMD and Nvidia but those are two honorable companies should have pre-announced the shortfall that I saw tonight it was way too big to keep secret no wonder the stock kept going down ahead of time that's why the government has these damn rules it's not Cricket it's not how you play the game still advised unfair but they are unfazed as has become typical with the firm salad Silicon Valley they've made so much money what do they care they destroyed everyone but what do they care why do they care fifth nobody enjoys uh firing people I know I've had to fire some people in my lifetime but when you lose your secular growth status like these companies have you have to find ways to save money and simply not filling positions is not enough you need to do what's called layoffs reductions and forces no one wants to do it but they don't even seem to know how to do I don't even know if they know it I wonder if they think rif is like some sort of thing like I don't know uh you know annual recurring Revenue rif can they come up with something in incoming Force I don't know maybe I'll Google it oh no you can't there's 70 things ahead of it six we discovered last night that the data centers become a cost center when I hear that the price of electricity in Europe is hurting data center profitability I start thinking what the heck are these chemical companies if that's the case I'd rather own Dell it also makes me realize that the semiconductor companies semiconductor industry well that may be an industry uh with the exception of The Honorable people at AMD and Nvidia well maybe that's not even much of an industry seventh the Fang cohort can no longer grow their way out of this Jam by making Acquisitions you know why governments worldwide despise it they hate them do you know it's the only thing that the Republicans and Democrats agree on that how horrible these companies are the Biden Administration in particular would like nothing more than destroy these companies any excuse to go after them but it's not just Democrats hating big Tech is one of the last bastions of hey when you speak to uh guys like McCarthy you know they like speak to him as a minority leader or you speak to the majority leader they like they said like the only thing you can say to them when they're disagree with each other's how about what do you think of metaverse finally tech companies issue stock endlessly and typically pay little to no dividends yet there are lesions of stocks out there with immense BuyBacks and generous dividends and many of them are much less Hostage to the broader economy it's time to recognize that Fang names got too big can they turn things around sure but they really got to change the way they operate like we've seen Netflix rolling out ads to breed New Life the business model this is they're trying I think Apple's trying now some of these companies can be reset meta I don't know I think that to change the name again they really do I mean you can't you can't be saved never I don't how about loser how about suputa I don't know anything anything doesn't even matter I don't know if they can make a comeback the facts have changed and I have to change with it I believed I thought I'd be safe I was wrong bottom line forget being leaders big stocks are now followers in a post-covet era where we're learning that their earnings were far more inflated by the pandemic than we knew we're just now discovering the tech Emperors have no clothes if they're even Emperors at all Brandon California Brandon uh big boo yeah Jim booyah my question to you my good man is I'm looking for a well-managed asset management company to add to my portfolio uh what do you think about uh BlackRock yes sir BlackRock is an excellent company run by honorable people who tell the truth as they see it and are very realistic and I I would definitely recommend that they are worth owning all right so up am I hot under the collar ah actually I'm fine I'll be more upset if the Phillies don't win the World Series or if Eagles lose this weekend but sometimes you know you got to blow off steam particularly when you see trillionaires and billionaires unable to come to grips with the fact that they want to destroy everything you have oh man bunny tonight Illinois tour supporter top and bottom might be you think they want to take everything ahead I think they just want to be good tool Works people oh then earlier today we got the largest side view of your mobile eye but could the Intel spin-off be investable after today's big run I'll give you my take and the financers are back in Fashion on the Wall Street fashion show so could Steve will be a name you should keep on your radar I'm talking to the CEO once again you know what no harm no foul Chief
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