Let's bring in Michael, Nathan said.
Michael, I don't think we need to hear from you.
I think I just made the case he's the senior.
I'm done.
Maybe the the way that I would be curious is
to say it does seem like Meta is executing very
well right now and maybe has a little bit of
this, you know, shot for the moon with the with
the glasses.
So kind of tell me the world from your point
of view.
Yeah, it feels like also with Meta, their, their core
business is really getting the benefit of AI.
You see in their ad numbers, they're accelerating their engagements,
doing really, really well.
So they definitely have momentum behind their business and they've
they've beat our numbers all year long.
But at the same time, you know, Alphabet's been involved
in machine learning for more than a decade.
There's worries about regulatory clearly and competition, but I think
we're underestimating the extent in which AI has helped them
get to where they are now.
So, so we like both, but just the outperformance of
Meta has been so stark and the gap in valuation
is really starting to pay, you know, kind of call
our attention.
So that's why we we've pivoted more to alphabet.
But it's funny, you know, I thought Meta would hit
a wall this year.
We down, we daggerated, we normated the top pick, but
the strength on operations have been so strong that he
succeeded our numbers the past two quarters.
It's interesting there Ford PE is only 22.
That actually surprises me and maybe speaks to that earnings
power we're talking about.
I mean, they've really used AI for a very business
friendly purpose of optimizing ad load.
I also can't help but watch Mark Zuckerberg and that
funny video he put out for, you know, the wife's
birth, the anniversary or whatever it was.
I mean, he's this is not a person who seems
to be concerned.
He seems he's a person who seems to be kind
of, you know, reveling and in what would meet to
my read on that is, is in how well business
is going.
So maybe it's a sign of a top, but it's
a sign of something.
No, Kelly, can I I agree with you.
I've covered this company about a decade now and they've
had two or three major pivots in that time.
And we've always worried on the street.
Oh, you know, they're they're over their skis.
They're spending too much money.
The future is now more uncertain and every time they've
made a major bet, they've won.
And I think your read is correct.
Like he understands what he has in terms of technology
power.
They're investing behind things that are working.
I feel the way you do.
I I think we're we're all done doubting these big
pivots, right?
He's proven it to us a bunch of times.
Yeah.
And you know, what they're doing on these big, big
opportunities.
Pretty impressive for a kid who just started this in
college.
I mean, to have evolved the way that that he
has.
We're supposed to be talking about the case for alphabet.
Maybe we're not doing it very well.
So is there a read through in terms of the
Trump administration?
Some would say, look, Musk and Zuck, we're going to
have that cage fight and maybe that, you know, it's
not so great or, you know, is alphabet calling, you
know, is there an overlay there or anything on the
kind of DOJ front that you think benefit alphabet or
is it simply just evaluation?
No, it's it's simply evaluation.
That's what we started with.
We we also thought that the fears about competition from
ChatGPT or perplexity, we're overdone, right.
So, so alphabets dubbed their toe off in the past
year.
We're only at new products.
But if you look at what they're doing now in
search with AIO reviews, it seems to be working right.
So I think when people take another look at Alphabet,
they realize that they're actually better long made their first
thought on regulatory.
I thought you're going to ask that question earlier.
I was going to say, unfortunately, regulatory is something that
I can't factor right now because it feels to us
that it's obviously early days, but a lot of it's
transactional.
One of the things that Trump has said is he
doesn't want to break up Google.
He needs Google because it's a counterbalance to China and
their own AI ambitions, right?
So perhaps the DOJ under his administration to be less
punitive towards to its alphabet.
You know, they have in the middle of a remedy
cycle now to figure out what to do about the
finding that they're a monopolist.
But that wasn't in the calculation.
It was simply AI is probably a better tailwind for
them than people imagine.
And look, if we if we have a less regulatory
pressure DOJ for the for alphabet, it's upside, right?
It's just.
It's not my calculation, but I'll take it.