all righty so Meta biggest position in the public account it's the big dog we're up $930,000 on that position right so Metan talks over scale AI investment that could exceed 10 billion Bloomberg reports oh my gosh meta is in talks to make an investment that could exceed $10 billion in artificial intelligence startup scale AI now I don't know why they call it startup because this company's been around a little bit now bloomberg News report on Sunday the terms of deal were not yet finalized and could still change the report said citing people familiar with the matter sounds about right skill AI declined a comment and Meta did not immediately respond to Reuters requests for comment outside regular business hours founded in 2016 which once again why they call it a startup when it's founded in 2016 like the company's like almost a decade old now at this point in time scale AI is a data labeling startup backed by tech giants such as Nvidia Amazon and Meta uh could it be three better backers like literally if you had to pick three companies to back your company in the whole world you would probably start with Nvidia Amazon and Meta right like oh my gosh less valued at nearly 14 billion dollars scale AI also provides a platform for researchers to exchange AI related information with contributors in more than 9,000 cities and towns so scale AI make the best models with your with the best data scale data engine powers nearly every major foundation model with scale gen AI platform leverages your enterprise data to unlock the value of AI right and obviously on the front page they brag about Microsoft um you know uses them meta uses them cisco uh even companies like GM and time and then uh Open AI is on the the front page as well right so clearly this company is extremely important for these very large very successful companies in the AI space right now if you're wondering kind of what's the deal between this company and Palanteer they seem like very different business models scale AI and Palanteer are companies in the AI space but they differ in their core offerings and target markets scale AI focuses on data labeling and model evaluation essentially providing the ingredients for AI models while Palunteer offers broader enterprise AI platforms for analyzing and leveraging data so I'll put it to you like this okay if I was a company maybe making LLMs or foundation models or doing anything in that realm I would probably go to a company like Scale AI versus go to a company like Palanteer however let's say I'm a big Fortune 500 company let's say I'm a big beverage maker right and I need my company my company has data spread all over this thing it's my big massive company and I need my data all in one place and I needed I need the data to be intelligent and be able to tell me you should do this next you should do that next right and leverage all that data to tell me problems that are going to arise that I might not see or other humans that are running the company and I might might not see right how to better utilize this data in a much more intelligent way right so we can figure out how to sell more whether we can figure out how to save cost doing this or doing that so that would be a Palanteer project that I'm going to that that I'm going to use Palanteer for i'm not going to use a scale AI company for something like that so they're very different use cases okay very very different use cases so and this is going to be something that's confusing to investors over this next bit of time because you're going to hear a lot of companies over this next many years they're an AI company and so you're like wait are they like an AI company as in like a Palunteer are they like a a scale AI or are they like data bricks or what are they like these companies are all going to be very very different right there's some that will have similarities or overlaps but a lot of them are going to be very different even you look at Meta Meta is an AI company but Meta the way they're going to compete in AI is very different than the way Palanteer competes in in AI versus the way scale AI competes in AI these companies are very very different or even a company like Amazon for that matter okay and even Google the way Google leverages AI very different than even Meta would utilize AI so do keep in mind a lot of these companies are competing in AI but doing it in very different ways it's not like these companies are all going head-to-head and just fighting over the same customers no it's not the way it works you need different companies for different things right no these AI Rayban metagasses which I actually have a pair it's pretty interesting what they've done recently so they're they're doing this essentially live translation where let's say you speak French I speak English we could actually have a conversation and it will do translation in real time so we can have as smooth of a conversation as possible right now I've watched some of these different translations some of them work well some of them don't work well the product needs more refinement right it needs to get up to a higher and higher level but the moral of the story is this is the future and this is going to be massive in my opinion and the reason this is so massive for Meta and I'll explain why it's so big for Meta as a product over time but keep in mind a lot of Meta is a worldwide company instagram's all over the world facebook is all over the world whatsapp's all over the world right if you're somebody that does business which how does how does Meta make all its money from advertising right if Meta could do anything to make it easier for somebody in China to talk to somebody in the United States to talk to somebody in France to talk to somebody in Belgium and Germany and you know Japan wherever South Korea then more business can be conducted if more business can be conducted on Facebook on Instagram on WhatsApp right more ads can be run more business success can happen more money can be made by companies because their friction of like not being able to communicate with each other is alleviated which means more money being spent on advertisements on Facebook and Instagram and WhatsApp and those sorts of things so it grows the whole pie so this is very very big as this translation uh technology it's not like it's impossible to like let's say you're a drop shipper right and you use Facebook for your advertising and you use Instagram for your advertising you use Shopify as your e-commerce platform but you drop ship different items from from China right and you need to communicate with those folks like you could you could get it done today but it's not like it's a great process it's not very easy i if you could hop on a on a Zoom caller but not Zoom right like something that's through a Facebook platform whatever and be able to communicate back and forth like it just it helps you do business better right and it alleviates kind of a pain point there and anything you could do easier is going to end up meaning in the end more money in Meta's pockets right but additionally I think this can help the meta glasses really take off right and so let me give you an example let's say I live in Vegas i do not speak Japanese but let's say I want to go to Japan with my wife right wouldn't it be great if I could be wearing a product like metal glasses and imagine it's three years in the future and I go to Japan and I'm able to conversate in a very easy way with uh you know folks in Japan and I'm able to understand them even though they're speaking Japanese and it's very easy for me to understand exactly what they're saying for me to see a menu let's say or whatever it is right some sort of document and you know I can just say meta you know what does that say and even though it's all in Japanese it's going to be able to say exactly what this sign says or what this document says or whatever right makes my life a whole lot easier and makes me say these medical glasses are very valuable they're worth a lot more than I spent on them Let's say you're a Chinese citizen you live in Shanghai China you want to come to my city you want to come to Vegas baby we know the Chinese they love they love to gamble they love to come to Vegas right so instead of coming to Vegas and there's hardly anybody to talk to and keep in mind there are some dealers especially at the high-end resorts like the Win and whatnot that do uh have some dealers that do speak fluent uh in Mandarin right but there's also most don't and so imagine you you go on a trip from Shanghai to Vegas and you're wearing a device like metaglasses or something like that and you can easily talk to the dealers or people that work at the restaurant waiters and things like that and able to communicate effectively in an easy manner with these sorts of folks right and as more and more people understand like how important this technology is then you start to have the staff needing to wear things like that right because imagine this technology is so good you could have a fluent conversation why would the why would let's say Win Resorts not want to have a device like this if they could easily have a device like this in all their employees ears right that could easily translate because you got to understand a company like Win they got customers coming from Latin America that don't speak English well or or China or Japan wherever right what would you not buy your entire employee force a device like this so they could easily be able to communicate back and forth with your customers instead of it being that awkward like I I don't know what he's saying i don't know what she's saying does anybody speak blah blah blah language like you know it's like an awkward whole situation right imagine if you could have a natural conversation and it's translating everything for you as you have that conversation that's what we call a killer app folks and if you want to know like how the iPhone took off right here's the deal the iPhone took off for one core reason it had a killer app the killer app was the internet right and Safari prior to that cell phones were were already loved and never didn't really need any tweaking people loved the text conversations you had it they loved their Blackberry devices they loved the ability to call uh they loved that they would have an iPod as well that they could listen to music with there was no issue with the phone that made everybody say "I hate phones." Like I don't remember being in high school and everybody saying I hate phones i can't wait till a new phone comes out no no everybody loved their phones people had the sidekicks anybody remember the Sidekick phones for some of you youngans you're probably like "What the heck see speaking a foreign language right now." Remember the Sidekicks man the Blackberries like all those devices were like great in their day but then iPhone came out and the thing that really made people say "I got to go get this iPhone." Was the fact that it had a good internet browser and that did not exist prior to iPhone the internet experience was complete trash on any of those old devices but then iPhone came out and said "We got this great internet." And people are like "Oh my gosh like this is basically like using internet on a laptop or a computer but it's on my phone sign me up." And so that's what we're talking about if you want the masses to really buy a product like the Metag Glasses instead of just like you know people that are kind of really forward looking on technology you need killer apps if you need things that makes people say "This is so awesome this is way better than like if I didn't have this device it makes my life way easier and better." Boom that's how you get the mass to adopt and then if you're meta that's how when you just keep building on it building on it building on it and next thing you know maybe you have the replacement of the phone right i know as of today it's very hard for us to even imagine a replacement of our smartphones today but you know don't be surprised if that gets replaced in 10 20 years right there's a lot of devices and things that we've had over time that we could never imagine that being replaced until a new technology came out and replace that thing and then we said we don't really have as much of a need for that thing anymore right technology moves on and uh that's how you capture new platforms but you need killer apps if you're really going to have something take off and I'm like stuff like that big time Right hey I want to thank you so much for watching that clip i hope you really enjoyed it what I'm showing you in front of your face right now is 1,000xstocks.com this is such an important website in service to use if you want to research companies if you want to understand companies on a high level so you can hopefully get better results in the market and we know as the years tick on money compounds it is so important you research companies you compare companies you're listening to conference calls looking at SEC filings all that's included into 1000xstocks.com so to enjoy thousandx.com and to apply for that service you can go to the description area of this video or you can go to 1000xstocks.com whichever you prefer all righty let's get into this bloomberg says that the Meta CEO has been frustrated with his company's progress in the AI race so far and is putting together what's being called a super intelligence group inside Meta the report says that Zuckerberg's goal is to beat other tech companies to reaching the See you know what that this is so big this is so big listen that's a difference between somebody that really pushes a company hard versus CEOs that are just there to collect paycheck right because you're looking at Meta meta is doing amazing things in AI and they're already making fortunes of money from AI like if you want to talk about who's making the most money in the world from AI honestly outside of Nvidia the company making the most direct money from AI is Meta through their AI algorithms that they already have running on Facebook Instagram to feed content to run ads all that good stuff and yet even with all the success right even with the llama model Zuckerberg still say "We're not moving fast enough we got to move even faster that's big man." You know that that's that's what true top CEOs that are dedicated their companies that's what they do right and that what would Steve Jobs do exactly what Zuckerberg's doing right like he would move that company faster and faster and faster and when you have a CE a CEO that is there day in and day out right pushing his company it leads to phenomenal results over time versus you know some of these comp you know CEOs that you know are kind of you know work at their companies two days a week right you know some of those guys you know where AI can perform as well as humans do so that it can incorporate the technology into its range of products according to reports over the last few days Meta is in talks to invest billions of dollars in an AI startup Scale AI bloomberg says that Zuckerberg is personally working to recruit dozens of people for Meta's new effort driven by frustration over the response to the latest version of the company's Llama large language model it's very similar to what we've heard from Sergey Brin getting kind of reinvigorated by this a year or two a couple years ago actually and building up and spending a lot running that team himself but AI is definitely the thing that has all these original coders super excited super competitive about and Zuckerberg's apparently moving desks in the office so that all of these people can sit right by him well hurry up it be interesting to see it it is break it's It seems quantum like you made that quantum leap and now we're really moving quickly we'll see it's amazing now i I am impressed at times with I ask something like wow how how does that work um so you know 100% that that's that's why I feel very comfortable having $1.1 million plus invested into meta stock of course $931,000 that is gains in the public account right but that's why I feel very very comfortable cuz you got a man there Zuckerberg he's like "Hey we got to move desks i'm moving desks together." Like we're going to do whatever it takes to to make this certain thing happen this certain thing happen right and I posted this on my X page if you guys ever want to follow me on X uh it's always linked in the description area down there if you even use X but um you know I post quite a bit of stuff on there almost every single day like you can see in the past 24 hours I've made like several different posts on different things uh talking about many different stocks but this one I thought was really important i just posted I said $1.1 million plus I have invested in Meta what many don't realize is Meta is a number two most direct AI play in the world outside of Nvidia they're even more of an AI even more AI than Palunteer which is saying a lot investors realize how much of an AI company Meta is over the next 3 years and when we're talking about meta for AI we're talking about how it feeds you content through their platforms right we're talking about what types of ads it serves up to you because at the end of the day if Meta is going to get advertisers to spend more and more money those advertisers have to get better and better ROIs the advertisers get more better ROIs they can spend even more money with Meta and it's like a great cycle plus if people actually get ads on those platforms that they're actually interested in right it's a better consumer experience as well everybody appreciates that right so it's a win-win across the board but then we talk about what they're doing with the llama models then we talk about all these subset of features they're going to have on their platforms over the coming years right in what they're going to be doing there i mean and you talk about you know let's say you're you're you know a top a top software engineer in the world right a top coder woo who do you want to go work for you want to go work for you know Apple that's having trouble doing anything you want to go work at Microsoft fall asleep you want to go work at you know Open AI you want to go work at Meta where you might be one of those 50 desks working alongside Zuckerberg right on a day in dayout basis or you want to go work at Tesla where you know you might see the CEO once a year where you want to go work I want to go work at Meta and so you know I think that's very meaningful because at the end of the day these companies with the best workforces are the ones that push the fastest and make the the the most insane new products and services that people are like dang like how did they just come out with that like How did they just create that out of thin air right and so Meta's moving fast here zuckerberg's not content for even a second and I love that man i absolutely love that cuz there's a lot of these big tech companies get really complacent really content really fast here right hey I want to thank you so much for watching that clip i hope you really enjoyed it what I'm showing you in front of your face right now is 1,000xstocks.com this is such an important website in service to use if you want to research companies if you want to understand companies on a high level so you can hopefully get better results in the market and we know as the years tick on money compounds it is so important you research companies you compare companies you're listening to conference calls looking at SEC filings all that's included intoxtocks.com so to enjoy thousandx.com and to apply for that service you can go to the description area of this video or you can go to 1,000xtocks.com whichever you prefer all righty next one up here David Cost on where the markets are headed who joins us here on set david good to see you welcome good morning i see you are you are you sensing u a legitimate reason for the market to grind higher uh well near-term there is some concern about the uh tariff uncertainty but people generally optimistic on the prospect that that's going to be resolved in a in a positive way and so longer term our expectation is the market rises maybe 9% or so high single digit maybe 10% when you include dividends over the next uh over the next year but near-term there's some uncertainty and uh not not surprising the market has rebounded pretty significantly off of its low in uh in early April are you looking for the hard data to start to reflect the weak soft data of the last month or two well the equity market traditionally trades more on the soft data than on the hard data and the expectation is that we've had a weak bout of soft data maybe some of that may be turning uh so I referenced the small business optimism as an example sort of surveys but the hard data is expected to weaken in the next our economics team is expecting that to be weaken the next sort of month or so uh we sit here today in the mid part of June you look out over the next uh sort of month to two months we still have some uncertainty on that uh extension of the tariff that delayed implementation go through the early part of July you have earning season which will start July 11th through or first week of August so that's uh uncertainty exactly before it goes further here what do I think about his call here for the market to go up 9% over the next year well what a what a boring call and why do I say that and the reason I say that is how much do you expect the S&P 500 to go up per year usually around 8% or so so by saying he thinks the market's going to go up 9% over the next year it's basically saying the market's going to do what the market does on average like that's not like a a big bold call or something like that right and so you know I'm expecting seeing this market continue to grind higher and if this market continues to grind higher you know throughout June into July August I think there's going to be fireworks this fall and I think there's going to be fireworks i'm still trying to figure out exactly what's going to be uh the lighter in this situation but I'm expecting fireworks this fall if the market continues to grind higher um you know this just is a little too good to be true right like we got we got fireworks coming it reminds me 2018 pricing actions would be in the companies in terms of their ability to maintain margins uh the China delay in the tariffs 90 days that'll put you into early part of August so we're sitting here in the next month to two months you get some hard data will be weaker you get some uncertainty around the earnings the blackout period for company share repurchases basically ends later this week or early part of next week in terms of the month before uh the season when companies something important you got to understand here is if the market does see a little weaker hard data as long as it's not like off a cliff the market will gladly take a little weaker hard data why well that helps alleviate the fear around overheating economy or or fears around inflation those sorts of things and so the market could get more confident in Fed rate cuts Because if you get some more weakening hard data the Fed can say you know what we we need a cut we we need to start cutting we need to start another cut cycle right are able to still repurchase discretionarily their their their uh shares so these are some of the variables that signposts you're looking at we're looking at plants are looking at you look out further uh to next year economy is likely to continue to grow we don't have a recession in the forecast that's not the base case and therefore you've got earnings growth 7% this year another 7% next year that lifts the market to around 6,500 6,500 is roughly up nearly 10% that's kind of the framework as we talk about it with clients so where where do you think tariff rate we're kind of under a month here into the 90-day deadline to make a bunch of trade deals and we haven't seen much on that front the UK so how do you factor in what that's going to do to margins so when we think about it from a level perspective the margins effective margins in the United States averaged around 3% last year and our economics team is modeling in something around 16% this year well really into once those uh get implemented probably 16% about a 13% increase that's the effective tariff rate so what do you do as a fund manager one of the things we talk about with clients is around companies that have been able to generate high and stable gross margins and so the ideas would be those companies who have demonstrated over the past decade their ability to maintain those high margins you look at some of the companies Kroger as an example of companies have done that uh you could look at GE Bernova you can think about companies like Salesforce uh IBM these are companies that have demonstrated high and stable gross margins over a period of time and we think that's a best indication of company's ability to maintain their margins because right now that is the central debate as to all these tariffs if and when they may get implemented how are they going to be who's going to pay for them is it going to be the So you know there's uh I think I think it's way too early to say there's not going to be a recession next year way too early a couple things to keep in mind here okay listen first home building home building drives so much of the economy how do the home builder numbers look as this year goes along right you need to see these companies continue to sell lots and lots of new homes so we can keep that construction market going cuz that just creates so many jobs and so many adjacent industries as well so I think that's really important let's keep an eye on that if you know these home builder numbers really start to weaken considerably as a year ticks on I would worry about recession a lot more for next year obviously you guys have seen the images and you've seen everything that's going on with uh the ice crackdowns right you might think ah it doesn't have anything to do with the economy it could end up actually I was doing some thinking about this recently i was like dang this could actually negatively affect the economy how everybody knows there's a massive amount of illegals living in the United States right those illegals spend a lot of money a lot of money in the economy they work their jobs and then they go spend that money right if you are in this country and your papers aren't right are you going to go out and spend any money for the next however bit much time whether that means months or years to go in the future no you're going to probably just try to do whatever your job is go straight home and stay in the dang house because you don't want to even risk going out right now right you don't want to risk any sort of situation where you could be pulled over or anything because then you could be talking about you know your whole family's going to be uprooted and so you got to understand there's a lot of the spend in the economy is people that don't have their papers right and those people are really really really going to have to um are going to be scared to go out for a while like imagine you you imagine you being in a situation where your papers aren't right and you're seeing all this stuff every time you go on X every time you go on Instagram Tik Tok whatever right about people left and right you know being in put into one of those ICE vehicles would you would you say "Yeah I'm going to go out to the mall right now i'm going to go out and do this i'm going to go to the taco shop i'm gonna go here i'm going to go there i'm go to the restaurant." I don't know man i'd be hunkered down that's all I'll say about that right and I would be a little petrified to even go out and spend money in the economy and so you know I think it's too early it's too early to make a call that the economy is not going to have a recession or will have a recession in 2026 but those are two factors pay attention to home building and I think this this whole immigration situation like I don't know how that's going to shake out but I just I don't see it being a good thing when it comes to the economic front in the short term that's for sure is it going to be the companies going to absorb that is it going to be the ultimate consumer and that is a a subject of of some debate different companies of course have different um leverage and power in terms of pricing perspective i mean I just keep highlighting retail because traditionally you would pass it on to the consumer but this is not a consumer environment for a lot of retailers where they they can do that so when our conversations and I spend a good amount of my time with corporate managements is a question about whether the consumer will trade down from a branded product to a private label product that's a way of having a product substitution not having to pay the premium if you will on the tariffs and so you get a similar product at a at a at a same price basically as you had had before that would be one behavioral response to uh the tariffs as an example on the on the on the retail side and we hear that from some uh of larger producers right now you know and another factor in regards to the whole immigration situation right and this ties back into home building is we got to be honest here a lot of the home building industry hires illegals right the question is how much of a percent does that that home building industry how much of it are people that don't have their papers right is it are we talking it's like 5% 10% 20% 30% i've seen estimates before um that are kind of in the 15 to 20% range we don't know but it's a big number it's not a small number so you know if we're talking about the home building industry had to go only people that are for sure 100% US citizens I mean it's going to get a lot more expensive to build homes a lot more expensive right so you know just something to keep in mind there which then weighs on inflation right and makes for more inflation so just all things to keep in mind here right in the construction industry in general trust me