November 13, 2025 • 39 mins
Chuck Zodda and Mike Armstrong discuss Disney saying film studio expenses weigh on current quarter. Streaming prices are soaring, and consumers are still paying. The Nasdaq whale's Nvidia sale smells desperate. Sundar Pichai is Google's AI wartime CEO after all. Toyota doubles down on hybrids in the US. Michael Burry shuts down Scion.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The Financial Exchange is produced by Money Matters Radio and
is hosted by employees of the Armstrong Advisory Group, a
registered investment advisor. All opinions expressed are solely those of
the hosts. Do not reflect the opinions of Armstrong Advisory
or anyone else. Investments can lose money. This program does
not offer any specific financial or investment advice. Please consult
your own financial, tax, and estate planning advisors before making
(00:20):
any investment decisions. Armstrong Advisory and the advertisers heard on
this program do not endorse each other or their services.
Armstrong and Money Matters Radio do not compensate each other
for referrals and are not affiliated. This is the Financial
Exchange with Chuck Zada and Mike Armstrong, your exclusive look
at business and financial news affecting your day, your city,
(00:42):
your world. Stay informed and up to date about economic
and market trends plus breaking business news every day. The
Financial Exchange is a proud partner of the Disabled American
Veterans Department of Massachusetts. Help us support our great American
heroes by visiting dav five K Dog Boston and making
a donation today. This is the Financial Exchange with Chuck
(01:05):
Zadath and Mike Armstrong.
Speaker 2 (01:09):
Chuck Mike Tucker with you here.
Speaker 3 (01:11):
And as we kick things off, we've got markets having
a little bit.
Speaker 2 (01:16):
Of a sell off today.
Speaker 3 (01:17):
It's nothing crazy, but the S and P is down
about one point one percent, seventy six points, Dow Jones
Industrial Average down three quarters of percent three hundred and
fifty seven points, and the Nasdaq Composite down four hundred
and seventeen points almost two percent. Uh and so you
can tell, yeah, it's the tech stuff that is getting
(01:39):
hit here. And this has kind of been the story
the last month or so, is some renewed concerns in
parts of that tech market that are weighing on it,
while in Nvidia and Apple try to do their best
to keep things afloat. So today you look at some
of your stocks that are you know, sinking. You got
Core Weave who reported earnings earlier this week. They're down
(01:59):
another six percent, Broadcom down five percent, in Vidia today
down four percent, Oracle down three Oracle mic by the way,
now about ten percent below where it was prior to
that big forty percent pop. So Oracle stock in the
last call it two months has gone from three forty
(02:21):
five down to two twenty. More than a third of
its value wiped off the map U during that time,
and they're now flirting with numbers that they last saw
back in June. So that's what's going on with them.
Other things moving in markets. US ten year treasury up
two point one basis points to four point one percent.
Not a huge move there, Dollar index despite rates up,
(02:44):
Dollar index selling off down point four to one percent.
Pretty sizable move there to ninety eight ninety seven. We
got gold down ten twenty an ounce again, kind of
things moving in different directions. Normally you get a week dollar,
you get gold popping a little bit. But gold down
to forty two four and twenty cents right now, in
about a quarter percent sell off. Oil up point three
(03:07):
to two and not point three two thirty two cents.
I guess is how humans would say that? Uh So,
oil up to fifty eight eighty one the tripa national
average four. Gas prices up another half a cent per
gallon over night to three oho eight even again, still
no meaningful move a year ago. Mike, do you know
where we were for oil for gas prices a year ago?
Speaker 2 (03:28):
Right around where we are now three Oho.
Speaker 3 (03:30):
Eight and four ten So we've moved four tenths of
a cent in a year. There just has not been
much movement there for the last twelve months. Thought is
a trick question there for a minute. I would never
do that to you. And that's what we've got moving
in markets today. Anything I missed there that you wanted
to touch.
Speaker 2 (03:44):
On, No, not market wise. Talk a little bit.
Speaker 3 (03:47):
About Disney earnings quite honestly, Like and and Mike, this
is gonna sound kind of weird, but doesn't Disney feel
kind of irrelevant to the broader market today? Like just
in general, I know.
Speaker 2 (04:03):
Brod to the broader market.
Speaker 4 (04:05):
Yeah, because I mean having is this company now one
hundred and ninety billion dollars? Yeah, sure, So they're not
going to drive the market one direction or the other.
I think they do have a fairly interesting representation of
pieces of the US economy in terms of discretionary spending.
That's not what's moving their company today, but I do
(04:25):
think they still have you know, I can look at
their parks revenue and it can give me a pretty
good semblance.
Speaker 2 (04:30):
Of what's going on with wealthy Americans for example. Yeah,
I'd say that's fair.
Speaker 3 (04:35):
The piece that is interesting, though, like just when when
you look at this and again, I just I sometimes
I feel like I get a little bit out of
touch with where things actually are in terms of their importance.
And I had one of those last week where I
said to you, Mike, did you realize that Uber's doing
twice the revenue that McDonald's is? Sure, and both of
(04:56):
us are kind of like wow, Like that's that's pretty amazing.
Here's another one, just along the same lines. Eight years ago, Mike,
Disney was doing about eight times the revenue that Uber was. Today,
Disney's doing about one point eight times the revenue that
Uber is.
Speaker 2 (05:14):
Uber's getting to.
Speaker 3 (05:15):
A point where it's giving you almost as much signal
about the US economy as Disney. In my opinion, it's close.
It's not there yet, but another four or five years
and it might be there. So when we talk about Disney,
they obviously have their different segments. They got parks, they
got their theaters, they got their legacy cable.
Speaker 2 (05:32):
And they've got streaming too. They got streaming as well.
Speaker 3 (05:36):
Given the fact that the stock is down nine percent,
I'm guessing at least one of those didn't please investors.
Speaker 4 (05:41):
Yeah, it was really the legacy cable In the movie
businesses that did not please investors a whole lot too
much screen time. So what we have here, You know,
Disney's been dealing with the same cord cutting that all
the traditional cable networks are and has been struggling with it,
just like all of them have been.
Speaker 2 (05:59):
They have a replace to it.
Speaker 4 (06:00):
That's quite powerful, which is Disney Plus, and their subscriber
growth there is quite good. But they're talking about serious
dollars that are just walking out the door. When Tucker
cuts his Exfinity package finally and you know, doesn't subscribe
to cable anymore. Disney's been in this fight with is
it YouTube TV that they've been battling with over Oh yes, I.
Speaker 3 (06:19):
Finally I got my twenty dollars credit a couple days ago,
and I am thrilled.
Speaker 4 (06:24):
Congratulations. And so that legacy business of theirs is under pressure,
and I don't know exactly what makes it improve other
than just a plateauing of the traditional cable package, which
we might be getting to based on conversations that I'm
having the other pieces. I see a potential temporary hit,
which is it's really expensive to make the latest Avatar
(06:46):
movie and it had better be a huge box office hit.
There's other movies as well, but that seems to be
weighing on earnings pretty substantially.
Speaker 2 (06:57):
Yeah, I think that's the case.
Speaker 3 (06:59):
And you know, you look at Disney and what they've again,
I find some of this is also like just thinking
about what Disney has, what they've transformed into over the
last twenty thirty years in terms of what they I'm
(07:20):
trying to think of the right way to phrase this, Like,
here's the example that I'll give when when you and
I were kids, Mike, and we went to Disney. You
would go there and you'd spend the day there, and
you'd have to wait in some lines, and it would
basically be like okay, you'd get on you know, your rides,
and you do this, and you do that, and that
would be the day. It's at the point now where
(07:41):
in order to have a day at Disney, from what
I understand, I haven't been there since I was in
like seventh grade, so it's been it's been a minute,
you know, it's been thirty years or so since I've
been to Disney. My understanding is that you basically have
to pre schedule your day and then pay for the
right to get on rides when you want to get
on them.
Speaker 2 (08:00):
Is that accurate?
Speaker 4 (08:01):
You don't have to And this is the piece where
I'm not the foremost expert, But you can still have
that experience of sitting in the lines and dealing with that.
I think the lines are probably longer than they were
were more people now, Yeah, but you can still have
that experience. But what Disney has latched onto is the
same thing that airlines and everything else has latched onto,
(08:22):
which is different customers are willing to pay different prices.
And that just wasn't a thing thirty years ago. John
no and Walt Disney like fought against this. He was like,
one of the things was like I want everyone, regardless
of how much they make, to be able to have
the same great experience at Disney.
Speaker 2 (08:37):
It was like the core of like the whole Disney thing.
Speaker 4 (08:39):
And that's definitely not the case anymore because you have, yeah,
these passes where you can entirely cut the line. They
have two lines, one for those who have reserved their spa,
the others who have not. You have to pay for
the right to reserve it. So yeah, it is a
very very different experience depending on it. And by the way,
if you pay the extra money to stay at a
Walt Disney World resort, which are you know, far.
Speaker 2 (09:01):
More expensive than the Hampton in down.
Speaker 4 (09:03):
The street, well you get to go into the park
an extra I think, half an hour before everybody else.
So there's there is definitely an exclusivity to these places
now that may not have existed thirty years ago.
Speaker 3 (09:15):
So look, obviously that's good for the park's business in
terms of you know, dollars in the short term. Does
it create you know, problems longer term.
Speaker 2 (09:23):
I don't know.
Speaker 3 (09:24):
I mean, I don't not sure, so they'll figure it out.
The piece that is interesting to me is the streaming
and cable business because it dovetails into the next story
that we're gonna cover, which is from the Wall Street
Journal titled streaming prices are soaring and consumers are still paying.
Let's take a quick break, and when we come back
and want to touch on that. We've also got some
trivia to do. But I got to tell you, Mike,
(09:47):
I'm starting to get a little fed up with the
costs of all this TV that I don't watch.
Speaker 2 (09:54):
And that's all I got to tell you people about it.
Speaker 3 (09:58):
Yeah, now you're gonna hear about it about it month
in advance of Festivus, So.
Speaker 2 (10:02):
Let's take a quick break.
Speaker 3 (10:03):
But when we come back, we're going to talk about
why the streaming is just so expensive.
Speaker 1 (10:09):
Find daily interviews and full shows of the Financial Exchange
on our YouTube page. Subscribe to our page and get
caught up on anything and everything you might have missed.
This is the Financial Exchange Radio Network. The Financial Exchange
is now available every day from eleven to noon on
Serious XM's business radio Channel one thirty two. Stay informed
(10:30):
about the latest from Wall Street, fiscal policy, and breaking
business news. Every day. The Financial Exchange is life on
Serious XM's Business Radio Channel one thirty two. This is
the Financial Exchange Radio Network.
Speaker 5 (10:47):
Tim for sure of you here on the Financial Exchange
and on this day. Back in nineteen seventy one, Steven
Spielberg released his first feature length film, Duel. Four years
after the release of Duel, Spielberg released his first box
office hit, Jaws. Since then, Spielberg has become obviously one
of Hollywood's most bankable directors. So our tribute question today,
(11:12):
what is the highest grossing movie of Steven Spielberg's career?
Once again, what is the highest grossing movie of Steven
Spielberg's career. Be the sixth person today to text us
at six one seven three six two thirteen eighty five
with the correct answer, and you win a Financial Exchange
Show T shirt. Once again, the six correct response to
(11:32):
Texas to the number six one seven three six two
thirteen eighty five will win that T shirt. See complete
contest rules at Financial Exchange Show dot com.
Speaker 2 (11:41):
And again.
Speaker 5 (11:41):
The Financial Exchange streams every day live on YouTube. Subscribe
to our page and follow market activity all morning long
only here on the Financial Exchange. Just search for the
show on YouTube and hit that subscribe button. Spielberg's gotta
be a top five director all time.
Speaker 3 (11:59):
Yeah, of course, Yeah, I'm just yeah, pitballing here again.
Speaker 2 (12:06):
Sure, didn't mean to offend anyone.
Speaker 3 (12:09):
Uh, Let's talk a little bit about the streaming business, Mike,
because here's the deal. For the last five to seven years,
the streaming business for pretty much everyone other than Netflix
has been bad. Everyone's been like trying to figure out
how to make money off of it.
Speaker 2 (12:23):
And as I say, I don't know that it's been bad,
it's just been unprofitable.
Speaker 3 (12:26):
Well that's bad. A business that's not profitable. It's a
bad business. Uber was unprofitable for a decade and now
they're and it was a bad business then, Yeah, like
they figured out how to make it profitable.
Speaker 2 (12:35):
You know.
Speaker 3 (12:35):
Like there's plenty of businesses that stay unprofitable and then
go out of business, which makes them bad businesses. So
the solution to an unprofitable streaming business is simple, raise
the price for your subscribers. So over the last six
years now, the cost of HBO Max, which has gone
(12:55):
through like eight different names, but it's HBO Max now,
is up twenty three percent. Not too bad actually, given
like the overall inflation during that time is north of it.
HBO Max has actually gone up at a slower pace
than inflation.
Speaker 2 (13:07):
It's fine.
Speaker 3 (13:08):
Netflix up thirty eight percent, pretty much in line with
inflation over that time, maybe a touch hotter paramount plus,
which I didn't know existed back in twenty nineteen, but
this piece from the Journal tells me he did up
forty percent.
Speaker 2 (13:21):
Hulu I'm fifty eight.
Speaker 3 (13:22):
And then you get into the egregious ones Peacock up
one hundred and twenty percent, Apple TVA one hundred and sixty,
Disney Plus up one seventy Two, the question that I ask,
are we getting close to the point where people are
going to start trimming on these because to this point,
with these price increases, we haven't seen that, and I'm
wondering if there is a point we get to where
(13:45):
people just say no, Like the aggregate pie of you know,
the aggregate pie that I have to allocate towards watching
video at home isn't big enough to cover all these costs,
and I gotta start cut some of these out.
Speaker 4 (14:00):
Yeah, I think a few things about this are new. One,
the price increases are relatively new. The password sharing crackdowns
also relatively new.
Speaker 2 (14:12):
To all of this.
Speaker 4 (14:13):
There's a few features that are new to right like
Netflix rolled out gaming apples, rolling out live sports as
is HBO, the bundles where you can put this all together,
and kind of I wouldn't say, get a cheaper price,
but get a more confusing price where you can't really
precisely tell what you're paying for. What are getting more popular,
But I would say, yes, chuck during they're in the
(14:35):
first downturn, I would expect that this is one of
the early things that does get cut. The other piece
of the cord cutting and streaming that I'm hearing more
and more people, you know, rebel against is the cord
cutting options for traditional cable, because Disney Plus is not
a cord cutting option for traditional cable. If you want
(14:55):
to watch some of those things. But you know, we've
both done it. YouTube TV, I have Fubo. I was
talking to a bunch of people my age in the
hockey locker room last week about this, and they're like,
you know, I hate paying Exfinity, but hearing you guys
complain about, Okay, how am I gonna watch Nessen this week?
How am I going to watch TNT that next week?
(15:17):
The games keep switching between these channels. It sounds like
nobody's terribly happy with their non cable scream U streaming package.
Speaker 2 (15:25):
It's not a lot.
Speaker 4 (15:26):
Cheaper, and the only real benefit that you seem to
be touting is that I don't need to pay for
all of these set top boxes, which the traditional cable
companies are starting to deal with that too. Exfinity, for example,
is now offering a you know, quote unquote cable package
that's all just streamed over the internet. And so as
(15:48):
we suspected, I think we're getting back, I wouldn't be
surprised if we reach have already reached peak cord cutting.
I don't know where we get these figures on that statistic,
but it doesn't seem like the same deal that it
was five years ago.
Speaker 3 (16:04):
No, And like I here's the other thing that's interesting,
just from again, my kids are not old enough for
most of this to matter yet. But like, I have
a number of friends who have kids that are now
in their teens, you know, like anywhere from like well
I guess they're they're teens, you.
Speaker 5 (16:19):
Know, like got it anywhere in the teen range.
Speaker 2 (16:22):
Yeah.
Speaker 3 (16:23):
And the interesting thing so, like one of them was
talking to their kid, who I think turned to like
thirteen or fourteen in the last month or two, and
was like, hey, like, do you want a TV in
your room? Which, again, like every family's different, I'm not
saying this is good or bad, but what I am
saying is the kid was like, no, I don't see
any use for that because he doesn't watch anything that's
(16:46):
on you know, normal TV. And he's perfectly content, you
know with you know, whether it's his tablet or whatever
it might be like watching you know, the stuff that
he does on that.
Speaker 4 (16:54):
Yeah, I was gonna say if I cut a bunch
of my streaming packages and allowed my kids to watch
more YouTube, they would be perfectly content. I'm not going
to do that because the content that's put onto YouTube
I find.
Speaker 2 (17:05):
Terry really dumb, really dumb. I really limit some kids
stuff out there is just like all right.
Speaker 4 (17:11):
Yeah, I really limit the amount of time my kids
can spend on there.
Speaker 2 (17:14):
So I wouldn't do that.
Speaker 4 (17:15):
But again, to your point, plenty of families are different,
and when the penny's getting pinched, I wouldn't be surprised
to say, see a bunch of kids say, yeah, I'll
be fine with just watching YouTube videos. I can go
watch another kid play a video game that I don't
know the name of anymore for an hour. Like that
is the type of stupid stuff that kids consume these days.
(17:36):
And by the way, to your point, they're usually doing
it on a cell phone or on an iPad.
Speaker 3 (17:42):
And so like, I have the thoughts, quite honestly, do
I cancel like that, you know, cable replacement streaming service
and just not replace it with anything.
Speaker 2 (17:53):
Yes, I lose live sports, quite.
Speaker 3 (17:56):
Honestly, I don't know how much many of them I
watch at this point, like it's and again like twenty
three year old me would be like, don't you ever
do that, You're gonna lose your soul.
Speaker 2 (18:05):
But like, I don't know.
Speaker 3 (18:07):
My soul's like okay ish, And I just don't know
if it's worth paying the eighty bucks a month for
YouTube TV, because.
Speaker 2 (18:18):
What do I really get out of it.
Speaker 4 (18:21):
Yeah, I think most families are going to continue to
pay for some form of a basic cable package.
Speaker 2 (18:27):
I think that that's.
Speaker 4 (18:28):
Ingrained enough into or equivalent or equivalent right either from
Inxfinity or from YouTube TV or Fubo or Sling or
one of these competitors. I don't think the actual cord
cutting is going to continue at these paces. And other
than Netflix, I would consider pretty much all of those
other streaming packages to be on the table for cost
(18:51):
cutting in the event of somebody losing their job. Netflix
somehow has this like dominant position where you might trade
down and get the ad supported to you. But I
just don't see much evidence of people cutting it.
Speaker 3 (19:03):
Interesting stat in here that in the last ten years,
the average household has gone from about one and a
half streaming services up to almost four and a half. Wow,
And I'm trying to think. I think we have three
maybe four, so like we're in the same boat. I'm
including like YouTube TV in that puzzle, but I do
think like that's that's kind of the norm. Right now,
(19:25):
just take a quick break. When we come back, we
have the Trivia Answer and.
Speaker 6 (19:28):
Wall Street Launch, bringing the latest financial news straight to
your radio every day. It's the Financial Exchange on the
Financial Exchange Radio Network.
Speaker 7 (19:49):
We're proud to announce that circle K is now the
official convenience store of the dav Department of Massachusetts at
circle K. Supporting those who bravely served our country isn't
just a commitment, it's a hard felt mission. Circle K
is honored to stand with the dav Department of Massachusetts
to ensure that veterans receive the care and recognition they deserve.
If you'd like to do your part, please visit DAVMA
(20:11):
dot org. Thank you for standing with circle K and
the dav Department of Massachusetts, and thank you veterans.
Speaker 1 (20:16):
For all you've done. Time now for Wall Street. Watch
a complete look at what's moving markets so far today
right here on the Financial Exchange Radio Network.
Speaker 5 (20:31):
Hey, the longest government shutdown in US history has ended.
In markets are now seeing a broad based sell off
by midday Right now, the dows down by three quarters
of a percent or three hundred and fifty three points.
S and P five hundred now down over one percent,
Nasdaq down one point six percent or three hundred and
(20:53):
eighty nine points, Russell two thousand, down one point seven percent.
Tenure Treasure reeled up two basis points at four point
one zero six percent. In crude oil up three quarters
of a percent, rating just below fifty nine dollars a barrel.
Cisco rising four percent after the network equipment company lifted
(21:13):
its earnings outlook, driven by demand for AI products. Meanwhile,
Disney offered mixed quarterly results where beat earnings expectations, bill
fell short of revenue forecasts. The media in entertainment giants
TV networks in movie business declined, offsetting gains in parks
and streaming, Disney stock falling nine percent now Elsewhere, fandual
(21:35):
parent company Flutter Entertainment cut its annual outlook that stocked
down by twelve percent and breaking news involving Verizon this
hour after The Wall Street Journal reported the company's planning
to cut about fifteen thousand jobs, looking to reduce costs
as it contends with increase competition for wireless service and
(21:55):
home internet. The cuts, the largest ever for Verizon, are
set to take place in the next week. That again,
according to the Wall Street Journal, Verizen stock now up
over one percent. I'm Tucker Silva and that is Wall
Street Watching. In the previous segment, we asked you the
tribute question, what is the highest grossing movie of Steven
Spielberg's career. That would be Jurassic Park. Chris from Pocasset
(22:20):
Masses are a winner today taking on a Financial Exchange
Show t shirt. Congrats to Chris, and we play trivia
every day here in the Financial Exchange See complete contest
rules at Financial Exchange Show dot com.
Speaker 2 (22:32):
Mike, are you familiar with the Nasdaq whale? What kind
of whale is it? H Well, it's it's a killer whale.
J Looking at whale, it's a baby wheel. Uh. I
think it's hurt, Jay. The Nasdaq whales hurt.
Speaker 3 (22:50):
So apparently masios Son, who runs soft Bank, is referred
to as the Nasdaq whale, which you gotta tell you.
I've known mas not personally, but I've known masiosra Sun
has existed for you know, the better part of twenty years.
I don't think I've ever heard of him referred to
as the Nasdaq whale before this piece. And so here's
(23:10):
the deal. So he runs soft Bank, and soft Bank
announced earlier this week that they sold their entire stake
in in Vidia for five point eight billion dollars. Now Here,
here's where things get kind of funny in all this, Mike, So,
soft Banks sold five point eight billion.
Speaker 2 (23:26):
Dollars in in Vidia stock.
Speaker 3 (23:27):
Okay, because Sun said that he wanted to go and
buy more open Ai. Not I mean it's not it's
technically stock, but you can't like buy open Ai in
the open market. He wanted to make, you know, a
private investment into open Ai, which buys in video products.
So like, just think of the weird circularity. Yeah, I'm
(23:50):
selling in Vidia stock to go buy the company that
buys in Vidia products.
Speaker 4 (23:53):
Okay, whatever, I was trying to think of what kind
of signal this actually is? Here's the sim answer. Sone
has no liquidity. He's gotta sell whatever is liquid, and
Nvidia's liquid, and so he can sell it, whereas he
can't sell the other stuff in his portfolio. Yeah, but
in terms of broader signals about anything other than soft
Bank does it tell me anything.
Speaker 3 (24:15):
Generally, Sone has been a pretty inopportune investor over the
last decade. Yes, in that when he has been making
these moves, they've generally been in opportune times. See his
investment in we Work and other similar companies in that
(24:35):
vintage he basically rode the rollercoaster up and then down
from twenty twenty to twenty twenty two. I don't know
that there's like a ton of signal he loves to make,
you know, crazy slides that just show things that are
detached from reality and PowerPoint. I like it's that I'm
in case you can't tell, I'm not particularly impressed with
(24:56):
like what he does because I don't think he does
anything particularly impressive.
Speaker 2 (25:01):
How's that for circularity right there? That's all I got is.
Speaker 5 (25:06):
State planning isn't just about taxes. It's about peace of mind.
Cushing and Dolan believes your plan should protect your family,
not complicate your life. A joint revocable trust can help
you do both. It lets you avoid probate, which means
no court delays, no public filings, and no stress for
your loved ones. Your state stays private, and your famili's
(25:27):
and your family stays in control. Cushing and Dolan's new guide,
called The Simplicity of Joint Revocable Trusts explains how our
trust can protect your children's inheritance from creditors, divorce, or
bad financial decisions down the road. The guide makes it
easy for you to understand why a joint trust may
be the smart move for your family's future. Call eight
(25:49):
six six eight four, eight five six nine nine right
now and ask for your copy of Cushing Dolan's guide,
called The Simplicity of Joint Revocable trust Us once again
call eight six six eight four eight five six nine
to nine, or you can request it from their website
Legal exchange show dot com.
Speaker 1 (26:09):
The proceeding was paid for and the views expressed are
solely those of Cushing and Dolan. Cushing and Dolan and
or Armstrong Advisory may contact you offering legal or investment services.
Cushing and Armstrong did not endorse each other and are
not affiliated.
Speaker 3 (26:20):
Past and Bloomberg. Mike soon de Pratchai is Google's AI
wartime CEO.
Speaker 2 (26:26):
After all, I'm gonna I feel like you're gonna be
doubtful of this.
Speaker 4 (26:31):
I'm gonna take the side of let's talk about where
Google what a Google occupied a year ago in terms
of their positioning, Because what I was hearing about Google
a year ago was they're a monopoly that's about to
be broken up. They are way behind on artificial intelligence,
and they're gonna be dead in the water because of
those two factors. And all three of those have been
proven false dramatically. So now, is it all because of
(26:55):
sunder patchaie?
Speaker 2 (26:55):
I don't know.
Speaker 4 (26:56):
I think you can still argue that he was timid
when it came to artifian intelligence and worried about what
it might do to their business, but has since kind
of reverse course on that and managed to roll out
their own artificial intelligence program not lose customers of their
cloud computing businesses, right, I mean, they're not being talked
(27:17):
about for open AI in the same way that Amazon
and Microsoft are because they more directly compete in that space,
but sure still picking up plenty of cloud business and
not seeing any meaningful deterioration in their traditional search plus
very successfully, whether you agree or disagree, I happen to disagree,
but very successfully argued that they are not to be
(27:39):
broken up because of monopolistic concerns.
Speaker 3 (27:42):
Yeah, there's no doubt that the last couple of years
has been good for PITCHAI and for Google. I think
it's a question as to, you know, hey, can you
expect this to continue? Like is this going to be
what we continue to see as the AI battly vow
as we see what comes of that over the next
(28:02):
three to five years. But I think it's absolutely true
that for the last couple of years, as much as like,
I can personally look at Google and be like, yep,
I don't love how monopolistic you are, and I don't
think you've had like a ton of innovation in your
core products, and I feel basically trapped by your YouTube
TV subscription service. Other than like, you know, again, those
(28:26):
are like my my personal things. But there's no doubt
that from an execution perspective, he's done what's needed in
order to keep the stock moving where he wants to
and from a investors wanted to.
Speaker 2 (28:40):
Yeah, and just you know, thinking about the future for
Google for a moment here.
Speaker 4 (28:45):
From a positioning standpoint, right, if if Apple is on
the cusp of spending a whole boatload of money to
onboard some sort of artificial intelligence system onto their platform,
doesn't Google seem pretty well positioned to benefit from that.
Speaker 2 (29:02):
Well, didn't they have an announcement to that effect like
a week or two? Yeah, I think they had some.
Speaker 4 (29:07):
And I just think about the deep ties that these
two companies already have, the integrations that they already have
in terms of Google having paid Apple for years now
to be the default search engine.
Speaker 2 (29:16):
Yeah, they know each other fairly well.
Speaker 4 (29:19):
And you know, Apple's whole positioning to this has been
will wait and see, And I think they're getting sorry,
go ahead with the announcement.
Speaker 3 (29:27):
It was last week on the fifth Apple nears deal
to pay Google billion dollars annually for Gemini to help
power their new sery.
Speaker 2 (29:34):
Right.
Speaker 4 (29:35):
So, yeah, I don't know both of those companies. Apple
is an interesting case, right, Like you know, they're play
they're taking the page from their old playbook of we're
not going to be first, but we're going to develop
something super user friendly. I'm not sure they'll be able
to execute on it. But man, Google has really, I guess,
(29:57):
shaken off any of the big looming can cerns about
their business so far.
Speaker 2 (30:02):
Yeah, I'd say that's fair. Just take a quick break
here when we return, time for a little bit of
stack root.
Speaker 1 (30:08):
Let's here the Financial Exchange every day from eleven to
noon Non Serious XM's Business radio channel one thirty two.
Keep it here for the latest business and financial news
and the trends on Wall Street. The Financial Exchange is
now life on Serious XM's business radio channel one thirty two.
Face He's the Financial Exchange Radio Network. The Financial Exchange
(30:31):
streams live on YouTube. Subscribe to our page and stay
up to date on breaking business news all morning long
Face is the Financial Exchange Radio Network.
Speaker 5 (30:43):
This segment of The Financial Exchange is powered by circle
K Convenience Stores. Circle K is now the official convenience
store of the dav Department of Massachusetts. On behalf of
circle K. Thank you veterans for all you've done.
Speaker 2 (30:58):
Mark, What do you got for stack Roulex?
Speaker 4 (31:00):
I want to talk a little bit about Toyota. I
know we brought this company up several times, but this
was a pretty quick turn in terms of a company
that had been so heavily criticized generally sticking to their guns.
Did they replace their CEO during all of this? I
feel like there might have been some capitulation by Toyota
(31:22):
at some point from the pressure of I don't think
it was because of EV's I think it happened to
coincide at the same time, so I think it was
read as you know, maybe a capitulation on the EV push.
But there was immense pressure on this company in particular
to roll out electric vehicles and abandon their hybrids, abandon
their hybrid twenty things that they had made.
Speaker 2 (31:43):
And it was not that long ago.
Speaker 4 (31:45):
It was yeah, twenty twenty three that changed the CEOs,
But this was pressure that was mounting in twenty twenty
one and twenty twenty two, twenty twenty five rolls around.
Every other car maker out there is abandoning their electric
vehicle plans, trying to focus on hybrid technologology, which is
not the most complicated thing to get right. But if
(32:05):
you have only been making internal combustion engine cars, my
guess is you're not going to be perfect at at
the first time around. Whereas Toyota has been dominating the
space with the Prius for twenty some odd years, and
I don't know, I see I see a lot of
growth potential for them. I think the only area where
they where I have some lingering concerns would be the
(32:25):
technology in their vehicles falls a little bit flat. Compared
to what the Korean car makers are doing.
Speaker 2 (32:33):
The technology like like like AV systems and stuff like that.
Speaker 4 (32:37):
Yeah, I would say the AV systems, the connectibility of
you know, Apple car Play, Google car Play or whatever
Google calls their version of that, as well as some
of the autopilot features that existing the new newer vehicles
that people look for Toyota. Again, I have a Toyota
in a Honda, and I just compare the two frequently,
and my Toyota is three years newer, but the Honda
(33:00):
is better with lane keep assistan things along those lines. So,
but they've been catching up on that stuff pretty rapidly,
and so I don't know, I see a pretty good
path forward for Toyota here when it comes to the
US auto market, at least. I don't know about foreign
auto markets quite as well. There they face a lot
more competition from China. But here in the US, man,
(33:20):
I don't see a lot of other companies doing what
they're doing.
Speaker 1 (33:22):
No.
Speaker 3 (33:23):
I mean again, they're two best selling models now, the
Rev four and the Camera are both gonna be hybrid
only as of next year, and they're gonna just they're
gonna crank through sales because again, you look at it,
and again, they're not your grandfather's prius. Sure you know,
it's like, okay, these are still like mainstream vehicles in
(33:44):
normal shapes and configurations that can get forty to fifty
five miles a gallon and still do all the stuff
that people want to do in them. And so that's like,
that's it's like the whole thing. And they're doing it
in a way now because they're against streamlining their production capacity,
they're doing it in a way where the additional cost
is not significant relative to what it would have been
(34:06):
for just an internal combustion engine vehicle because it's just, hey,
we're only producing hybrids and so we don't have as
much additional cost for the new configuration because we're making.
Speaker 2 (34:18):
Four hundred thousand a year of this, not just one
hundred thousand.
Speaker 4 (34:21):
But I'll tell you, I think American car company CEOs
have some tough questions to answer about why they.
Speaker 3 (34:29):
Really they're not tough questions in my opinion, Like they
they saw all the excitement about EV's and what was
going on with Tesla's stock price, and they wanted to
be part of it. Like I understand the incentives at
the time, Yeah, and I think it makes sense, Like
I understand why they did what they did. It doesn't
mean it was a good decision, but yeah, I think
and I mean why like they got to that point?
Speaker 2 (34:50):
What was it?
Speaker 4 (34:50):
Was it general motors that invested in like the Panasonic
battery factory that they had to sell off a couple
of years that there were some serious dollars at play
here and they really be kind of bought into a
bunch of investor and you know, public enthusiasm that I
think they should have taken a much harder look at
in hindsight.
Speaker 3 (35:11):
Yeah, I would. Uh, I would agree. Let's see, so
we covered Toyota. Uh, let's see build a bearn No,
I want to talk about Michael Burry. Yeah, because everyone
loves to talk about Michael Burry because they've seen the
big short and so like people just like, for whatever reason,
it's just like something about him, Like everyone just loves
(35:32):
to follow his investment moves, like he's never been wrong.
And granted, he's way smarter than I ever will be.
He's made more money in the investing world than I
ever will and so I'm not poopooing him, but it's
just like, okay, like he's still just a guy. It's
it's just he's you know, he's human. He's not perfect.
Speaker 2 (35:49):
Uh.
Speaker 3 (35:49):
He is shutting his hedge fund down. He's deregistered his
hedge fund and sent a letter out basically saying that
he is moving on. And I I think when when
looking at this, the comparison that I've seen, you know,
tossed about, just because again Burry's hedge fund, by all accounts,
(36:10):
has not done great over the last few years, just
because he's kind of seen like things looking a little bubbly,
and he's made some big out bets on the other
side of that that haven't paid off. And the thing
I've seen like bandied about in terms of what this
could signal, and again it's gonna depend on where markets
go the next several years. But Julian Robertson who founded
(36:34):
Tiger Investment whatever the heck was called back in back
in the eighties, like again probably like the basically the
hedge fund of hedge funds for the eighties and nineties,
Tiger Management was the official name of it. They returned
to like thirty percent a year net of fees for
a twenty year period. It was insane, like the only
(36:54):
hedge fund that comes close is Renaissance Macro, Renaissance Capital,
Renaissance Technology, and like it's just insane, Like what a
couple of these guys have done. But Robertson closed down
Tiger in two thousand was basically like, I've gotten bludgeoned
betting against the tech bubble in ninety nine and early
two thousand.
Speaker 2 (37:12):
I can't do it anymore.
Speaker 3 (37:14):
And basically like right after he called it quits, the
tech bubble popped. And so the question that like it
has been raised and that I wonder is okay, So
Burry's doing the same thing here. And granted Burry does
not have the track record that Robertson does. Again, Robertson
I look at as probably one of the two or
three best hedge fund managers in history. And that's just
(37:35):
not Burry. Burry had you know, one great trade that
made an awful lot of money, and the rest of
his career has been fine but not you know, amazing.
But you look at this, you do kind of get
that echo and you wonder, ah, like he's gotten beaten
up for the last couple of years, same way that
Robertson did.
Speaker 2 (37:52):
What if like his exit is basically, you know, he
just he just.
Speaker 3 (37:56):
Couldn't hold on long enough Mark, you know, so it's
might find that interesting an interesting comparison. Yeah, other stories
why Americans are giving up on Sweet Green because it's
about to salad. It's really highly priced salad, and there's
more competition coming into the space in the form of companies.
Speaker 2 (38:12):
Like just Salad Done. Okay, glad we covered Thatt what
else we got?
Speaker 4 (38:18):
Markets are in strongly negative territories or close out the show.
The Dow is off four hundred and eighty one points,
a full percentage point SMP off about eighty eight points,
more than one and a quarter than NASDAC leading the
way down. As we close out the show today on
the day of the government reopening, four hundred and fifty
points one point nine percent. We will have a full
recap and more for you tomorrow a Friday here on
(38:39):
the Financial Exchange
The Financial Exchange is produced by Money Matters Radio and
is hosted by employees of the Armstrong Advisory Group, a
registered investment advisor. All opinions expressed are solely those of
the hosts. Do not reflect the opinions of Armstrong Advisory
or anyone else. Investments can lose money. This program does
not offer any specific financial or investment advice. Please consult
your own financial, tax, and estate planning advisors before making
(00:20):
any investment decisions. Armstrong Advisory and the advertisers heard on
this program do not endorse each other or their services.
Armstrong and Money Matters Radio do not compensate each other
for referrals and are not affiliated. This is the Financial
Exchange with Chuck Zada and Mike Armstrong, your exclusive look
at business and financial news affecting your day, your city,
(00:42):
your world. Stay informed and up to date about economic
and market trends plus breaking business news every day. The
Financial Exchange is a proud partner of the Disabled American
Veterans Department of Massachusetts. Help us support our great American
heroes by visiting dav five K Dog Boston and making
a donation today. This is the Financial Exchange with Chuck
(01:05):
Zadath and Mike Armstrong.
Speaker 2 (01:09):
Chuck Mike Tucker with you here.
Speaker 3 (01:11):
And as we kick things off, we've got markets having
a little bit.
Speaker 2 (01:16):
Of a sell off today.
Speaker 3 (01:17):
It's nothing crazy, but the S and P is down
about one point one percent, seventy six points, Dow Jones
Industrial Average down three quarters of percent three hundred and
fifty seven points, and the Nasdaq Composite down four hundred
and seventeen points almost two percent. Uh and so you
can tell, yeah, it's the tech stuff that is getting
(01:39):
hit here. And this has kind of been the story
the last month or so, is some renewed concerns in
parts of that tech market that are weighing on it,
while in Nvidia and Apple try to do their best
to keep things afloat. So today you look at some
of your stocks that are you know, sinking. You got
Core Weave who reported earnings earlier this week. They're down
(01:59):
another six percent, Broadcom down five percent, in Vidia today
down four percent, Oracle down three Oracle mic by the way,
now about ten percent below where it was prior to
that big forty percent pop. So Oracle stock in the
last call it two months has gone from three forty
(02:21):
five down to two twenty. More than a third of
its value wiped off the map U during that time,
and they're now flirting with numbers that they last saw
back in June. So that's what's going on with them.
Other things moving in markets. US ten year treasury up
two point one basis points to four point one percent.
Not a huge move there, Dollar index despite rates up,
(02:44):
Dollar index selling off down point four to one percent.
Pretty sizable move there to ninety eight ninety seven. We
got gold down ten twenty an ounce again, kind of
things moving in different directions. Normally you get a week dollar,
you get gold popping a little bit. But gold down
to forty two four and twenty cents right now, in
about a quarter percent sell off. Oil up point three
(03:07):
to two and not point three two thirty two cents.
I guess is how humans would say that? Uh So,
oil up to fifty eight eighty one the tripa national
average four. Gas prices up another half a cent per
gallon over night to three oho eight even again, still
no meaningful move a year ago. Mike, do you know
where we were for oil for gas prices a year ago?
Speaker 2 (03:28):
Right around where we are now three Oho.
Speaker 3 (03:30):
Eight and four ten So we've moved four tenths of
a cent in a year. There just has not been
much movement there for the last twelve months. Thought is
a trick question there for a minute. I would never
do that to you. And that's what we've got moving
in markets today. Anything I missed there that you wanted
to touch.
Speaker 2 (03:44):
On, No, not market wise. Talk a little bit.
Speaker 3 (03:47):
About Disney earnings quite honestly, Like and and Mike, this
is gonna sound kind of weird, but doesn't Disney feel
kind of irrelevant to the broader market today? Like just
in general, I know.
Speaker 2 (04:03):
Brod to the broader market.
Speaker 4 (04:05):
Yeah, because I mean having is this company now one
hundred and ninety billion dollars? Yeah, sure, So they're not
going to drive the market one direction or the other.
I think they do have a fairly interesting representation of
pieces of the US economy in terms of discretionary spending.
That's not what's moving their company today, but I do
(04:25):
think they still have you know, I can look at
their parks revenue and it can give me a pretty
good semblance.
Speaker 2 (04:30):
Of what's going on with wealthy Americans for example. Yeah,
I'd say that's fair.
Speaker 3 (04:35):
The piece that is interesting, though, like just when when
you look at this and again, I just I sometimes
I feel like I get a little bit out of
touch with where things actually are in terms of their importance.
And I had one of those last week where I
said to you, Mike, did you realize that Uber's doing
twice the revenue that McDonald's is? Sure, and both of
(04:56):
us are kind of like wow, Like that's that's pretty amazing.
Here's another one, just along the same lines. Eight years ago, Mike,
Disney was doing about eight times the revenue that Uber was. Today,
Disney's doing about one point eight times the revenue that
Uber is.
Speaker 2 (05:14):
Uber's getting to.
Speaker 3 (05:15):
A point where it's giving you almost as much signal
about the US economy as Disney. In my opinion, it's close.
It's not there yet, but another four or five years
and it might be there. So when we talk about Disney,
they obviously have their different segments. They got parks, they
got their theaters, they got their legacy cable.
Speaker 2 (05:32):
And they've got streaming too. They got streaming as well.
Speaker 3 (05:36):
Given the fact that the stock is down nine percent,
I'm guessing at least one of those didn't please investors.
Speaker 4 (05:41):
Yeah, it was really the legacy cable In the movie
businesses that did not please investors a whole lot too
much screen time. So what we have here, You know,
Disney's been dealing with the same cord cutting that all
the traditional cable networks are and has been struggling with it,
just like all of them have been.
Speaker 2 (05:59):
They have a replace to it.
Speaker 4 (06:00):
That's quite powerful, which is Disney Plus, and their subscriber
growth there is quite good. But they're talking about serious
dollars that are just walking out the door. When Tucker
cuts his Exfinity package finally and you know, doesn't subscribe
to cable anymore. Disney's been in this fight with is
it YouTube TV that they've been battling with over Oh yes, I.
Speaker 3 (06:19):
Finally I got my twenty dollars credit a couple days ago,
and I am thrilled.
Speaker 4 (06:24):
Congratulations. And so that legacy business of theirs is under pressure,
and I don't know exactly what makes it improve other
than just a plateauing of the traditional cable package, which
we might be getting to based on conversations that I'm
having the other pieces. I see a potential temporary hit,
which is it's really expensive to make the latest Avatar
(06:46):
movie and it had better be a huge box office hit.
There's other movies as well, but that seems to be
weighing on earnings pretty substantially.
Speaker 2 (06:57):
Yeah, I think that's the case.
Speaker 3 (06:59):
And you know, you look at Disney and what they've again,
I find some of this is also like just thinking
about what Disney has, what they've transformed into over the
last twenty thirty years in terms of what they I'm
(07:20):
trying to think of the right way to phrase this, Like,
here's the example that I'll give when when you and
I were kids, Mike, and we went to Disney. You
would go there and you'd spend the day there, and
you'd have to wait in some lines, and it would
basically be like okay, you'd get on you know, your rides,
and you do this, and you do that, and that
would be the day. It's at the point now where
(07:41):
in order to have a day at Disney, from what
I understand, I haven't been there since I was in
like seventh grade, so it's been it's been a minute,
you know, it's been thirty years or so since I've
been to Disney. My understanding is that you basically have
to pre schedule your day and then pay for the
right to get on rides when you want to get
on them.
Speaker 2 (08:00):
Is that accurate?
Speaker 4 (08:01):
You don't have to And this is the piece where
I'm not the foremost expert, But you can still have
that experience of sitting in the lines and dealing with that.
I think the lines are probably longer than they were
were more people now, Yeah, but you can still have
that experience. But what Disney has latched onto is the
same thing that airlines and everything else has latched onto,
(08:22):
which is different customers are willing to pay different prices.
And that just wasn't a thing thirty years ago. John
no and Walt Disney like fought against this. He was like,
one of the things was like I want everyone, regardless
of how much they make, to be able to have
the same great experience at Disney.
Speaker 2 (08:37):
It was like the core of like the whole Disney thing.
Speaker 4 (08:39):
And that's definitely not the case anymore because you have, yeah,
these passes where you can entirely cut the line. They
have two lines, one for those who have reserved their spa,
the others who have not. You have to pay for
the right to reserve it. So yeah, it is a
very very different experience depending on it. And by the way,
if you pay the extra money to stay at a
Walt Disney World resort, which are you know, far.
Speaker 2 (09:01):
More expensive than the Hampton in down.
Speaker 4 (09:03):
The street, well you get to go into the park
an extra I think, half an hour before everybody else.
So there's there is definitely an exclusivity to these places
now that may not have existed thirty years ago.
Speaker 3 (09:15):
So look, obviously that's good for the park's business in
terms of you know, dollars in the short term. Does
it create you know, problems longer term.
Speaker 2 (09:23):
I don't know.
Speaker 3 (09:24):
I mean, I don't not sure, so they'll figure it out.
The piece that is interesting to me is the streaming
and cable business because it dovetails into the next story
that we're gonna cover, which is from the Wall Street
Journal titled streaming prices are soaring and consumers are still paying.
Let's take a quick break, and when we come back
and want to touch on that. We've also got some
trivia to do. But I got to tell you, Mike,
(09:47):
I'm starting to get a little fed up with the
costs of all this TV that I don't watch.
Speaker 2 (09:54):
And that's all I got to tell you people about it.
Speaker 3 (09:58):
Yeah, now you're gonna hear about it about it month
in advance of Festivus, So.
Speaker 2 (10:02):
Let's take a quick break.
Speaker 3 (10:03):
But when we come back, we're going to talk about
why the streaming is just so expensive.
Speaker 1 (10:09):
Find daily interviews and full shows of the Financial Exchange
on our YouTube page. Subscribe to our page and get
caught up on anything and everything you might have missed.
This is the Financial Exchange Radio Network. The Financial Exchange
is now available every day from eleven to noon on
Serious XM's business radio Channel one thirty two. Stay informed
(10:30):
about the latest from Wall Street, fiscal policy, and breaking
business news. Every day. The Financial Exchange is life on
Serious XM's Business Radio Channel one thirty two. This is
the Financial Exchange Radio Network.
Speaker 5 (10:47):
Tim for sure of you here on the Financial Exchange
and on this day. Back in nineteen seventy one, Steven
Spielberg released his first feature length film, Duel. Four years
after the release of Duel, Spielberg released his first box
office hit, Jaws. Since then, Spielberg has become obviously one
of Hollywood's most bankable directors. So our tribute question today,
(11:12):
what is the highest grossing movie of Steven Spielberg's career?
Once again, what is the highest grossing movie of Steven
Spielberg's career. Be the sixth person today to text us
at six one seven three six two thirteen eighty five
with the correct answer, and you win a Financial Exchange
Show T shirt. Once again, the six correct response to
(11:32):
Texas to the number six one seven three six two
thirteen eighty five will win that T shirt. See complete
contest rules at Financial Exchange Show dot com.
Speaker 2 (11:41):
And again.
Speaker 5 (11:41):
The Financial Exchange streams every day live on YouTube. Subscribe
to our page and follow market activity all morning long
only here on the Financial Exchange. Just search for the
show on YouTube and hit that subscribe button. Spielberg's gotta
be a top five director all time.
Speaker 3 (11:59):
Yeah, of course, Yeah, I'm just yeah, pitballing here again.
Speaker 2 (12:06):
Sure, didn't mean to offend anyone.
Speaker 3 (12:09):
Uh, Let's talk a little bit about the streaming business, Mike,
because here's the deal. For the last five to seven years,
the streaming business for pretty much everyone other than Netflix
has been bad. Everyone's been like trying to figure out
how to make money off of it.
Speaker 2 (12:23):
And as I say, I don't know that it's been bad,
it's just been unprofitable.
Speaker 3 (12:26):
Well that's bad. A business that's not profitable. It's a
bad business. Uber was unprofitable for a decade and now
they're and it was a bad business then, Yeah, like
they figured out how to make it profitable.
Speaker 2 (12:35):
You know.
Speaker 3 (12:35):
Like there's plenty of businesses that stay unprofitable and then
go out of business, which makes them bad businesses. So
the solution to an unprofitable streaming business is simple, raise
the price for your subscribers. So over the last six
years now, the cost of HBO Max, which has gone
(12:55):
through like eight different names, but it's HBO Max now,
is up twenty three percent. Not too bad actually, given
like the overall inflation during that time is north of it.
HBO Max has actually gone up at a slower pace
than inflation.
Speaker 2 (13:07):
It's fine.
Speaker 3 (13:08):
Netflix up thirty eight percent, pretty much in line with
inflation over that time, maybe a touch hotter paramount plus,
which I didn't know existed back in twenty nineteen, but
this piece from the Journal tells me he did up
forty percent.
Speaker 2 (13:21):
Hulu I'm fifty eight.
Speaker 3 (13:22):
And then you get into the egregious ones Peacock up
one hundred and twenty percent, Apple TVA one hundred and sixty,
Disney Plus up one seventy Two, the question that I ask,
are we getting close to the point where people are
going to start trimming on these because to this point,
with these price increases, we haven't seen that, and I'm
wondering if there is a point we get to where
(13:45):
people just say no, Like the aggregate pie of you know,
the aggregate pie that I have to allocate towards watching
video at home isn't big enough to cover all these costs,
and I gotta start cut some of these out.
Speaker 4 (14:00):
Yeah, I think a few things about this are new. One,
the price increases are relatively new. The password sharing crackdowns
also relatively new.
Speaker 2 (14:12):
To all of this.
Speaker 4 (14:13):
There's a few features that are new to right like
Netflix rolled out gaming apples, rolling out live sports as
is HBO, the bundles where you can put this all together,
and kind of I wouldn't say, get a cheaper price,
but get a more confusing price where you can't really
precisely tell what you're paying for. What are getting more popular,
But I would say, yes, chuck during they're in the
(14:35):
first downturn, I would expect that this is one of
the early things that does get cut. The other piece
of the cord cutting and streaming that I'm hearing more
and more people, you know, rebel against is the cord
cutting options for traditional cable, because Disney Plus is not
a cord cutting option for traditional cable. If you want
(14:55):
to watch some of those things. But you know, we've
both done it. YouTube TV, I have Fubo. I was
talking to a bunch of people my age in the
hockey locker room last week about this, and they're like,
you know, I hate paying Exfinity, but hearing you guys
complain about, Okay, how am I gonna watch Nessen this week?
How am I going to watch TNT that next week?
(15:17):
The games keep switching between these channels. It sounds like
nobody's terribly happy with their non cable scream U streaming package.
Speaker 2 (15:25):
It's not a lot.
Speaker 4 (15:26):
Cheaper, and the only real benefit that you seem to
be touting is that I don't need to pay for
all of these set top boxes, which the traditional cable
companies are starting to deal with that too. Exfinity, for example,
is now offering a you know, quote unquote cable package
that's all just streamed over the internet. And so as
(15:48):
we suspected, I think we're getting back, I wouldn't be
surprised if we reach have already reached peak cord cutting.
I don't know where we get these figures on that statistic,
but it doesn't seem like the same deal that it
was five years ago.
Speaker 3 (16:04):
No, And like I here's the other thing that's interesting,
just from again, my kids are not old enough for
most of this to matter yet. But like, I have
a number of friends who have kids that are now
in their teens, you know, like anywhere from like well
I guess they're they're teens, you.
Speaker 5 (16:19):
Know, like got it anywhere in the teen range.
Speaker 2 (16:22):
Yeah.
Speaker 3 (16:23):
And the interesting thing so, like one of them was
talking to their kid, who I think turned to like
thirteen or fourteen in the last month or two, and
was like, hey, like, do you want a TV in
your room? Which, again, like every family's different, I'm not
saying this is good or bad, but what I am
saying is the kid was like, no, I don't see
any use for that because he doesn't watch anything that's
(16:46):
on you know, normal TV. And he's perfectly content, you
know with you know, whether it's his tablet or whatever
it might be like watching you know, the stuff that
he does on that.
Speaker 4 (16:54):
Yeah, I was gonna say if I cut a bunch
of my streaming packages and allowed my kids to watch
more YouTube, they would be perfectly content. I'm not going
to do that because the content that's put onto YouTube
I find.
Speaker 2 (17:05):
Terry really dumb, really dumb. I really limit some kids
stuff out there is just like all right.
Speaker 4 (17:11):
Yeah, I really limit the amount of time my kids
can spend on there.
Speaker 2 (17:14):
So I wouldn't do that.
Speaker 4 (17:15):
But again, to your point, plenty of families are different,
and when the penny's getting pinched, I wouldn't be surprised
to say, see a bunch of kids say, yeah, I'll
be fine with just watching YouTube videos. I can go
watch another kid play a video game that I don't
know the name of anymore for an hour. Like that
is the type of stupid stuff that kids consume these days.
(17:36):
And by the way, to your point, they're usually doing
it on a cell phone or on an iPad.
Speaker 3 (17:42):
And so like, I have the thoughts, quite honestly, do
I cancel like that, you know, cable replacement streaming service
and just not replace it with anything.
Speaker 2 (17:53):
Yes, I lose live sports, quite.
Speaker 3 (17:56):
Honestly, I don't know how much many of them I
watch at this point, like it's and again like twenty
three year old me would be like, don't you ever
do that, You're gonna lose your soul.
Speaker 2 (18:05):
But like, I don't know.
Speaker 3 (18:07):
My soul's like okay ish, And I just don't know
if it's worth paying the eighty bucks a month for
YouTube TV, because.
Speaker 2 (18:18):
What do I really get out of it.
Speaker 4 (18:21):
Yeah, I think most families are going to continue to
pay for some form of a basic cable package.
Speaker 2 (18:27):
I think that that's.
Speaker 4 (18:28):
Ingrained enough into or equivalent or equivalent right either from
Inxfinity or from YouTube TV or Fubo or Sling or
one of these competitors. I don't think the actual cord
cutting is going to continue at these paces. And other
than Netflix, I would consider pretty much all of those
other streaming packages to be on the table for cost
(18:51):
cutting in the event of somebody losing their job. Netflix
somehow has this like dominant position where you might trade
down and get the ad supported to you. But I
just don't see much evidence of people cutting it.
Speaker 3 (19:03):
Interesting stat in here that in the last ten years,
the average household has gone from about one and a
half streaming services up to almost four and a half. Wow,
And I'm trying to think. I think we have three
maybe four, so like we're in the same boat. I'm
including like YouTube TV in that puzzle, but I do
think like that's that's kind of the norm. Right now,
(19:25):
just take a quick break. When we come back, we
have the Trivia Answer and.
Speaker 6 (19:28):
Wall Street Launch, bringing the latest financial news straight to
your radio every day. It's the Financial Exchange on the
Financial Exchange Radio Network.
Speaker 7 (19:49):
We're proud to announce that circle K is now the
official convenience store of the dav Department of Massachusetts at
circle K. Supporting those who bravely served our country isn't
just a commitment, it's a hard felt mission. Circle K
is honored to stand with the dav Department of Massachusetts
to ensure that veterans receive the care and recognition they deserve.
If you'd like to do your part, please visit DAVMA
(20:11):
dot org. Thank you for standing with circle K and
the dav Department of Massachusetts, and thank you veterans.
Speaker 1 (20:16):
For all you've done. Time now for Wall Street. Watch
a complete look at what's moving markets so far today
right here on the Financial Exchange Radio Network.
Speaker 5 (20:31):
Hey, the longest government shutdown in US history has ended.
In markets are now seeing a broad based sell off
by midday Right now, the dows down by three quarters
of a percent or three hundred and fifty three points.
S and P five hundred now down over one percent,
Nasdaq down one point six percent or three hundred and
(20:53):
eighty nine points, Russell two thousand, down one point seven percent.
Tenure Treasure reeled up two basis points at four point
one zero six percent. In crude oil up three quarters
of a percent, rating just below fifty nine dollars a barrel.
Cisco rising four percent after the network equipment company lifted
(21:13):
its earnings outlook, driven by demand for AI products. Meanwhile,
Disney offered mixed quarterly results where beat earnings expectations, bill
fell short of revenue forecasts. The media in entertainment giants
TV networks in movie business declined, offsetting gains in parks
and streaming, Disney stock falling nine percent now Elsewhere, fandual
(21:35):
parent company Flutter Entertainment cut its annual outlook that stocked
down by twelve percent and breaking news involving Verizon this
hour after The Wall Street Journal reported the company's planning
to cut about fifteen thousand jobs, looking to reduce costs
as it contends with increase competition for wireless service and
(21:55):
home internet. The cuts, the largest ever for Verizon, are
set to take place in the next week. That again,
according to the Wall Street Journal, Verizen stock now up
over one percent. I'm Tucker Silva and that is Wall
Street Watching. In the previous segment, we asked you the
tribute question, what is the highest grossing movie of Steven
Spielberg's career. That would be Jurassic Park. Chris from Pocasset
(22:20):
Masses are a winner today taking on a Financial Exchange
Show t shirt. Congrats to Chris, and we play trivia
every day here in the Financial Exchange See complete contest
rules at Financial Exchange Show dot com.
Speaker 2 (22:32):
Mike, are you familiar with the Nasdaq whale? What kind
of whale is it? H Well, it's it's a killer whale.
J Looking at whale, it's a baby wheel. Uh. I
think it's hurt, Jay. The Nasdaq whales hurt.
Speaker 3 (22:50):
So apparently masios Son, who runs soft Bank, is referred
to as the Nasdaq whale, which you gotta tell you.
I've known mas not personally, but I've known masiosra Sun
has existed for you know, the better part of twenty years.
I don't think I've ever heard of him referred to
as the Nasdaq whale before this piece. And so here's
(23:10):
the deal. So he runs soft Bank, and soft Bank
announced earlier this week that they sold their entire stake
in in Vidia for five point eight billion dollars. Now Here,
here's where things get kind of funny in all this, Mike, So,
soft Banks sold five point eight billion.
Speaker 2 (23:26):
Dollars in in Vidia stock.
Speaker 3 (23:27):
Okay, because Sun said that he wanted to go and
buy more open Ai. Not I mean it's not it's
technically stock, but you can't like buy open Ai in
the open market. He wanted to make, you know, a
private investment into open Ai, which buys in video products.
So like, just think of the weird circularity. Yeah, I'm
(23:50):
selling in Vidia stock to go buy the company that
buys in Vidia products.
Speaker 4 (23:53):
Okay, whatever, I was trying to think of what kind
of signal this actually is? Here's the sim answer. Sone
has no liquidity. He's gotta sell whatever is liquid, and
Nvidia's liquid, and so he can sell it, whereas he
can't sell the other stuff in his portfolio. Yeah, but
in terms of broader signals about anything other than soft
Bank does it tell me anything.
Speaker 3 (24:15):
Generally, Sone has been a pretty inopportune investor over the
last decade. Yes, in that when he has been making
these moves, they've generally been in opportune times. See his
investment in we Work and other similar companies in that
(24:35):
vintage he basically rode the rollercoaster up and then down
from twenty twenty to twenty twenty two. I don't know
that there's like a ton of signal he loves to make,
you know, crazy slides that just show things that are
detached from reality and PowerPoint. I like it's that I'm
in case you can't tell, I'm not particularly impressed with
(24:56):
like what he does because I don't think he does
anything particularly impressive.
Speaker 2 (25:01):
How's that for circularity right there? That's all I got is.
Speaker 5 (25:06):
State planning isn't just about taxes. It's about peace of mind.
Cushing and Dolan believes your plan should protect your family,
not complicate your life. A joint revocable trust can help
you do both. It lets you avoid probate, which means
no court delays, no public filings, and no stress for
your loved ones. Your state stays private, and your famili's
(25:27):
and your family stays in control. Cushing and Dolan's new guide,
called The Simplicity of Joint Revocable Trusts explains how our
trust can protect your children's inheritance from creditors, divorce, or
bad financial decisions down the road. The guide makes it
easy for you to understand why a joint trust may
be the smart move for your family's future. Call eight
(25:49):
six six eight four, eight five six nine nine right
now and ask for your copy of Cushing Dolan's guide,
called The Simplicity of Joint Revocable trust Us once again
call eight six six eight four eight five six nine
to nine, or you can request it from their website
Legal exchange show dot com.
Speaker 1 (26:09):
The proceeding was paid for and the views expressed are
solely those of Cushing and Dolan. Cushing and Dolan and
or Armstrong Advisory may contact you offering legal or investment services.
Cushing and Armstrong did not endorse each other and are
not affiliated.
Speaker 3 (26:20):
Past and Bloomberg. Mike soon de Pratchai is Google's AI
wartime CEO.
Speaker 2 (26:26):
After all, I'm gonna I feel like you're gonna be
doubtful of this.
Speaker 4 (26:31):
I'm gonna take the side of let's talk about where
Google what a Google occupied a year ago in terms
of their positioning, Because what I was hearing about Google
a year ago was they're a monopoly that's about to
be broken up. They are way behind on artificial intelligence,
and they're gonna be dead in the water because of
those two factors. And all three of those have been
proven false dramatically. So now, is it all because of
(26:55):
sunder patchaie?
Speaker 2 (26:55):
I don't know.
Speaker 4 (26:56):
I think you can still argue that he was timid
when it came to artifian intelligence and worried about what
it might do to their business, but has since kind
of reverse course on that and managed to roll out
their own artificial intelligence program not lose customers of their
cloud computing businesses, right, I mean, they're not being talked
(27:17):
about for open AI in the same way that Amazon
and Microsoft are because they more directly compete in that space,
but sure still picking up plenty of cloud business and
not seeing any meaningful deterioration in their traditional search plus
very successfully, whether you agree or disagree, I happen to disagree,
but very successfully argued that they are not to be
(27:39):
broken up because of monopolistic concerns.
Speaker 3 (27:42):
Yeah, there's no doubt that the last couple of years
has been good for PITCHAI and for Google. I think
it's a question as to, you know, hey, can you
expect this to continue? Like is this going to be
what we continue to see as the AI battly vow
as we see what comes of that over the next
(28:02):
three to five years. But I think it's absolutely true
that for the last couple of years, as much as like,
I can personally look at Google and be like, yep,
I don't love how monopolistic you are, and I don't
think you've had like a ton of innovation in your
core products, and I feel basically trapped by your YouTube
TV subscription service. Other than like, you know, again, those
(28:26):
are like my my personal things. But there's no doubt
that from an execution perspective, he's done what's needed in
order to keep the stock moving where he wants to
and from a investors wanted to.
Speaker 2 (28:40):
Yeah, and just you know, thinking about the future for
Google for a moment here.
Speaker 4 (28:45):
From a positioning standpoint, right, if if Apple is on
the cusp of spending a whole boatload of money to
onboard some sort of artificial intelligence system onto their platform,
doesn't Google seem pretty well positioned to benefit from that.
Speaker 2 (29:02):
Well, didn't they have an announcement to that effect like
a week or two? Yeah, I think they had some.
Speaker 4 (29:07):
And I just think about the deep ties that these
two companies already have, the integrations that they already have
in terms of Google having paid Apple for years now
to be the default search engine.
Speaker 2 (29:16):
Yeah, they know each other fairly well.
Speaker 4 (29:19):
And you know, Apple's whole positioning to this has been
will wait and see, And I think they're getting sorry,
go ahead with the announcement.
Speaker 3 (29:27):
It was last week on the fifth Apple nears deal
to pay Google billion dollars annually for Gemini to help
power their new sery.
Speaker 2 (29:34):
Right.
Speaker 4 (29:35):
So, yeah, I don't know both of those companies. Apple
is an interesting case, right, Like you know, they're play
they're taking the page from their old playbook of we're
not going to be first, but we're going to develop
something super user friendly. I'm not sure they'll be able
to execute on it. But man, Google has really, I guess,
(29:57):
shaken off any of the big looming can cerns about
their business so far.
Speaker 2 (30:02):
Yeah, I'd say that's fair. Just take a quick break
here when we return, time for a little bit of
stack root.
Speaker 1 (30:08):
Let's here the Financial Exchange every day from eleven to
noon Non Serious XM's Business radio channel one thirty two.
Keep it here for the latest business and financial news
and the trends on Wall Street. The Financial Exchange is
now life on Serious XM's business radio channel one thirty two.
Face He's the Financial Exchange Radio Network. The Financial Exchange
(30:31):
streams live on YouTube. Subscribe to our page and stay
up to date on breaking business news all morning long
Face is the Financial Exchange Radio Network.
Speaker 5 (30:43):
This segment of The Financial Exchange is powered by circle
K Convenience Stores. Circle K is now the official convenience
store of the dav Department of Massachusetts. On behalf of
circle K. Thank you veterans for all you've done.
Speaker 2 (30:58):
Mark, What do you got for stack Roulex?
Speaker 4 (31:00):
I want to talk a little bit about Toyota. I
know we brought this company up several times, but this
was a pretty quick turn in terms of a company
that had been so heavily criticized generally sticking to their guns.
Did they replace their CEO during all of this? I
feel like there might have been some capitulation by Toyota
(31:22):
at some point from the pressure of I don't think
it was because of EV's I think it happened to
coincide at the same time, so I think it was
read as you know, maybe a capitulation on the EV push.
But there was immense pressure on this company in particular
to roll out electric vehicles and abandon their hybrids, abandon
their hybrid twenty things that they had made.
Speaker 2 (31:43):
And it was not that long ago.
Speaker 4 (31:45):
It was yeah, twenty twenty three that changed the CEOs,
But this was pressure that was mounting in twenty twenty
one and twenty twenty two, twenty twenty five rolls around.
Every other car maker out there is abandoning their electric
vehicle plans, trying to focus on hybrid technologology, which is
not the most complicated thing to get right. But if
(32:05):
you have only been making internal combustion engine cars, my
guess is you're not going to be perfect at at
the first time around. Whereas Toyota has been dominating the
space with the Prius for twenty some odd years, and
I don't know, I see I see a lot of
growth potential for them. I think the only area where
they where I have some lingering concerns would be the
(32:25):
technology in their vehicles falls a little bit flat. Compared
to what the Korean car makers are doing.
Speaker 2 (32:33):
The technology like like like AV systems and stuff like that.
Speaker 4 (32:37):
Yeah, I would say the AV systems, the connectibility of
you know, Apple car Play, Google car Play or whatever
Google calls their version of that, as well as some
of the autopilot features that existing the new newer vehicles
that people look for Toyota. Again, I have a Toyota
in a Honda, and I just compare the two frequently,
and my Toyota is three years newer, but the Honda
(33:00):
is better with lane keep assistan things along those lines. So,
but they've been catching up on that stuff pretty rapidly,
and so I don't know, I see a pretty good
path forward for Toyota here when it comes to the
US auto market, at least. I don't know about foreign
auto markets quite as well. There they face a lot
more competition from China. But here in the US, man,
(33:20):
I don't see a lot of other companies doing what
they're doing.
Speaker 1 (33:22):
No.
Speaker 3 (33:23):
I mean again, they're two best selling models now, the
Rev four and the Camera are both gonna be hybrid
only as of next year, and they're gonna just they're
gonna crank through sales because again, you look at it,
and again, they're not your grandfather's prius. Sure you know,
it's like, okay, these are still like mainstream vehicles in
(33:44):
normal shapes and configurations that can get forty to fifty
five miles a gallon and still do all the stuff
that people want to do in them. And so that's like,
that's it's like the whole thing. And they're doing it
in a way now because they're against streamlining their production capacity,
they're doing it in a way where the additional cost
is not significant relative to what it would have been
(34:06):
for just an internal combustion engine vehicle because it's just, hey,
we're only producing hybrids and so we don't have as
much additional cost for the new configuration because we're making.
Speaker 2 (34:18):
Four hundred thousand a year of this, not just one
hundred thousand.
Speaker 4 (34:21):
But I'll tell you, I think American car company CEOs
have some tough questions to answer about why they.
Speaker 3 (34:29):
Really they're not tough questions in my opinion, Like they
they saw all the excitement about EV's and what was
going on with Tesla's stock price, and they wanted to
be part of it. Like I understand the incentives at
the time, Yeah, and I think it makes sense, Like
I understand why they did what they did. It doesn't
mean it was a good decision, but yeah, I think
and I mean why like they got to that point?
Speaker 2 (34:50):
What was it?
Speaker 4 (34:50):
Was it general motors that invested in like the Panasonic
battery factory that they had to sell off a couple
of years that there were some serious dollars at play
here and they really be kind of bought into a
bunch of investor and you know, public enthusiasm that I
think they should have taken a much harder look at
in hindsight.
Speaker 3 (35:11):
Yeah, I would. Uh, I would agree. Let's see, so
we covered Toyota. Uh, let's see build a bearn No,
I want to talk about Michael Burry. Yeah, because everyone
loves to talk about Michael Burry because they've seen the
big short and so like people just like, for whatever reason,
it's just like something about him, Like everyone just loves
(35:32):
to follow his investment moves, like he's never been wrong.
And granted, he's way smarter than I ever will be.
He's made more money in the investing world than I
ever will and so I'm not poopooing him, but it's
just like, okay, like he's still just a guy. It's
it's just he's you know, he's human. He's not perfect.
Speaker 2 (35:49):
Uh.
Speaker 3 (35:49):
He is shutting his hedge fund down. He's deregistered his
hedge fund and sent a letter out basically saying that
he is moving on. And I I think when when
looking at this, the comparison that I've seen, you know,
tossed about, just because again Burry's hedge fund, by all accounts,
(36:10):
has not done great over the last few years, just
because he's kind of seen like things looking a little bubbly,
and he's made some big out bets on the other
side of that that haven't paid off. And the thing
I've seen like bandied about in terms of what this
could signal, and again it's gonna depend on where markets
go the next several years. But Julian Robertson who founded
(36:34):
Tiger Investment whatever the heck was called back in back
in the eighties, like again probably like the basically the
hedge fund of hedge funds for the eighties and nineties,
Tiger Management was the official name of it. They returned
to like thirty percent a year net of fees for
a twenty year period. It was insane, like the only
(36:54):
hedge fund that comes close is Renaissance Macro, Renaissance Capital,
Renaissance Technology, and like it's just insane, Like what a
couple of these guys have done. But Robertson closed down
Tiger in two thousand was basically like, I've gotten bludgeoned
betting against the tech bubble in ninety nine and early
two thousand.
Speaker 2 (37:12):
I can't do it anymore.
Speaker 3 (37:14):
And basically like right after he called it quits, the
tech bubble popped. And so the question that like it
has been raised and that I wonder is okay, So
Burry's doing the same thing here. And granted Burry does
not have the track record that Robertson does. Again, Robertson
I look at as probably one of the two or
three best hedge fund managers in history. And that's just
(37:35):
not Burry. Burry had you know, one great trade that
made an awful lot of money, and the rest of
his career has been fine but not you know, amazing.
But you look at this, you do kind of get
that echo and you wonder, ah, like he's gotten beaten
up for the last couple of years, same way that
Robertson did.
Speaker 2 (37:52):
What if like his exit is basically, you know, he
just he just.
Speaker 3 (37:56):
Couldn't hold on long enough Mark, you know, so it's
might find that interesting an interesting comparison. Yeah, other stories
why Americans are giving up on Sweet Green because it's
about to salad. It's really highly priced salad, and there's
more competition coming into the space in the form of companies.
Speaker 2 (38:12):
Like just Salad Done. Okay, glad we covered Thatt what
else we got?
Speaker 4 (38:18):
Markets are in strongly negative territories or close out the show.
The Dow is off four hundred and eighty one points,
a full percentage point SMP off about eighty eight points,
more than one and a quarter than NASDAC leading the
way down. As we close out the show today on
the day of the government reopening, four hundred and fifty
points one point nine percent. We will have a full
recap and more for you tomorrow a Friday here on
(38:39):
the Financial Exchange
Popular Podcasts
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
Ruthie's Table 4
For more than 30 years The River Cafe in London, has been the home-from-home of artists, architects, designers, actors, collectors, writers, activists, and politicians. Michael Caine, Glenn Close, JJ Abrams, Steve McQueen, Victoria and David Beckham, and Lily Allen, are just some of the people who love to call The River Cafe home. On River Cafe Table 4, Rogers sits down with her customers—who have become friends—to talk about food memories. Table 4 explores how food impacts every aspect of our lives. “Foods is politics, food is cultural, food is how you express love, food is about your heritage, it defines who you and who you want to be,” says Rogers. Each week, Rogers invites her guest to reminisce about family suppers and first dates, what they cook, how they eat when performing, the restaurants they choose, and what food they seek when they need comfort. And to punctuate each episode of Table 4, guests such as Ralph Fiennes, Emily Blunt, and Alfonso Cuarón, read their favourite recipe from one of the best-selling River Cafe cookbooks. Table 4 itself, is situated near The River Cafe’s open kitchen, close to the bright pink wood-fired oven and next to the glossy yellow pass, where Ruthie oversees the restaurant. You are invited to take a seat at this intimate table and join the conversation. For more information, recipes, and ingredients, go to https://shoptherivercafe.co.uk/ Web: https://rivercafe.co.uk/ Instagram: www.instagram.com/therivercafelondon/ Facebook: https://en-gb.facebook.com/therivercafelondon/ For more podcasts from iHeartRadio, visit the iheartradio app, apple podcasts, or wherever you listen to your favorite shows. Learn more about your ad-choices at https://www.iheartpodcastnetwork.com
The Joe Rogan Experience
The official podcast of comedian Joe Rogan.