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More than 200,000 lawyers and 80% of the AMO 100 are building with Harvey, accelerating review, sharpening negotiations, and more. Learn more at Harvey.ai Harvey does not provide legal advice, users should always independently review and verify any output from Harvey. I'm a voice agent powered by deepgram. I don't just understand words, but I understand context. Like when you're at Trittia Knight and say, "I'm on fire," it means you got the last three questions right. But when you're camping and say, "I'm on fire," it means a spark just landed on your highly flammable synthetic rain pants. Deepgram understands words in context, across STT, TTS, and voice agents. That means better conversations at production scale. Learn more at deepgram.com/context is everything. I feel like the president feels like he's got two years left to molest the country for as much money as possible. Hi, everyone. This is Pivot from New York Magazine in the Vox Media Podcast Network. I'm Cara Swisher and I love AI. And I'm Scott Galloway. You need to say AI because Trump is banning it. Yes. But I just want to be clear, there's no way as a distraction, and also it's real. I think this is outstanding governance. I think this is what he should be focused on, and I think this is a good move rebranding as governance. This is absolutely the hill to die on for the president. And the Cheesecake Factory, correct? And the Cheesecake Factory. AI company is filing two trillion dollar IPOs and committing half a trillion to compute and in the risk section saying that they might destroy humanity, but no, superintelligence is where he should be focused. Yeah, I think so too. I think it's a good spot for him. He can play with himself. Let's rename the iceberg before we hit it. Yes. I'm going to call it, no, no, no, call it IB, not iceberg, but it's coming right towards us, sir. Just shut the fuck up. Call it IB. Okay. AI, I like it. Oh, God. That's why you're such a genius marketing professor. Oh, yeah, that's it. That's it. That's what they call me. Are you ready for Halloween, Scott? Ready. I'm already full. Halloween up. I got three different costumes. Okay. Which one of you weren't? You look a little tired. I've heard you've been going out in New York. There's a lot of exciting stuff here. Uh oh. Do you have your spies out? I do. I just freaked you about it. I'm a tour next week. I would, you know, daddy did go a little deep in the pants. Yeah. Yeah. I'm getting reports. Is it? Is the fact that I'm shaking and have ad bill in an IV attached to my eyeball for an AI? An AI. An AI attached to you. Not an IV. It's like, what's got our parting last night? Chances are. Yeah. Good question. Good question. Interesting. Interesting. What are you wearing? Which one did you pick for Halloween? Last night. I was going to go as Larry David. Yeah. And despite the fact that I was not looking for him, I'm like, God, it's just too unfocable. I know. Yeah, that's going to come. I just couldn't do it. I knew you couldn't. And I took it off and then I had this Darth Vader thing, but it looked like a blouse on me. It just didn't look. I looked like, I looked like Delta Burke from, what was that great show? Designing women. Such a good show. That was a good show. I loved Delta Burke. I looked like Delta Burke with like a stereo panel on her chest. Yeah, okay. That was my Darth Vader outfit. Okay, this doesn't work. Okay. Okay. And then what did I do? Oh, I had Spider-Man. Yeah. It was too tight. I think I gained some weight. Oh, no. You can't be fat Spider-Man. You'll be like on the one in Times Square, Derby Fats. Yeah. Yeah. Yeah. I looked like. And I'm dirty fat Spider-Man in time. No, it's even worse. I'm not even fat right now. I'm skinny fat. I'm skinny at soft. Oh. Really fat. Skinny fat. Skinny fat. I love that. You're absolutely right. People can be skinny in fat. But the alcohol and the blueberry muffin and three coffees I've had this morning is really going to book. You're really good. You know, I, when I was in Michigan last weekend, I hugged Alex and he is so, he is, he is so fit that I almost broke my nose hugging him. No. He's like, ow. He's a, he's a brick house. He's a brick house. He is, he's not skinny. He's, he's just not soft in any way. No. But so what did you decide? You're going to go with Scott Galloway? What? No. I totally, I totally screwed up. I went as the same thing as one of last year. I put on my old dead pool outfit, which is always a crowd loser. That's okay. But everybody under the age of 40 is like, are you Iron Man? I'm a Jesus Christ. Get your character. I'm saying, it's Halloween is until Saturday. Oh, not in New York by sweetheart. Oh, is it? No. We started last night. Oh, yeah. And it goes every night. Yeah. By Saturday. You know, by Saturday, I've had a massive schematic stroke. Okay. But I mean, all the weed rolls around. But it's time there are kids out on the street. Yeah. Yeah. I'm 40% chance. I'm still. Yeah. I'm still with us. Oh, well. I'm going to do a big home in my house. I decorate quite a bit. As you know, I got more stuff. I got ghosts. I just got glow up. Chains. I got a new blow up for the top of the roof, which I went out on my roof the other day and put it up, which was crazy. But the neighborhood seems to like it. All the kids. I'm popular with the childrens. Yeah. It's your I'm going to have. I'm deciding whether I have full candy bars or not. What do you think? Because that'll just lock it for me. I have this image of you accidentally ending up in a very like mega right wing neighborhood and people rolling by you with their kids and then pulling their kids close to them and streaming at you. Sinner. They love me. They love me. They love me. What does that make me happy? Yeah. I'm going to do full. I may have to do. I don't know. That's wrong. I don't know. Anyway, excited about I'm coming to New York on this on Sunday. I think that's right. We have this whole tour thing. Uh-huh. Yeah. Yeah. We're busy. We're going to get new photos done of Scott and I, which is very exciting. But you better look, get some like Korean mask or something before Monday, because we're taking photography of ourselves again, and this is eight years ago, we don't see ethnicity with my beauty products. Okay. It's just a mask. Whatever it takes. It's just a mask on Southeast Asia. Y'all need to look good. I don't like to appropriate cultures with my beauty routine. You don't want to know. You want to know my beauty routine? What? I splash water on my face. Okay. Well, you need to look good. We're going to do makeup. I think we're going to have to. Obviously. We're going to do that. I'm going, you know, I'm going on the view on Monday. Uh-oh. You're going on again. They must like you. Yeah. I'm going on. I have a special guest. I'm brilliant. Not you. Um, does Alison own that? No. Tell me six months. Yeah. I know. Exactly. No. No, no, no. It's, um, it's exciting. Um, so are you going to be ready for our event? I'm super excited. Okay. It's going to be fun. We've got great guests everywhere. It's going to be so much fucking news and we'll have the election. And if we have to stay there, um, we'll, we'll seek asylum there for ourselves or whatever. Um, does Elon will become president. Um, but let's, let's, let's, I, the reason I was talking about artificial intelligence AI, because Trump has been officially banning the term from government documents and news words, everything else in short order. In this post, he called out Wall Street Journal for not using his preferred to super intelligence or SI, which is sports illustrated, calling AI the very bad and inaccurate name. I don't know why that. It's unclear. If you don't comply, what'll happen anyway? That's what it, that it was. Um, so we will just say AI, AI, AI, all the time today, just as much as we can. You know, the, the letters AI are in a lot of words. Did you know that? Faith. There's AI pops up a lot of places. Well, that's why people come to the show for that type of blinding insight. I just think it's interesting pain, which you are in obviously right now. Um, what else? Okay. I'll think of words over the course of the show. Um, this is ridiculous. Even Matt Walsh called the thing the weirdest political hell to die on. So there you have it. It's just, um, do you have any other good names for AI if you were going to rename it? Mass extinction event. Um, we're rich. We're rich. We're rich. We're rich. We're not. We're rich. Nope. We're dead. We're dead. We're dead. No. Okay. All right. Let me speak. Speaking of which, it's been a busy speaking of like pronouncements. It's been a busy week for you that called out by Elon Musk. Finally, you've been taking it to him. I've noticed all the, but you're like really going for it. You've been calling them all manner of names. He responded to a video posted on X of you discussing the potential Tesla space sex merger. Where you said Tesla is the patient and space sex shareholders of the organ donors, which are very funny. Um, you were making a point in context of Tesla's declining deliveries and sales, but apparently it didn't sit well with Elon who was posted, quote, he never had any clue. Uh, how do you feel? You've been, you've been going at him, not just on that, but I, I've noticed on your other. You, you say something minor about him. He threatens to pull you in prison. I know. Right. Listen to you. I called him a menace and addict and a traitor to the West. Yes. A traitor to the West. What interests him is that I say one group of shareholders might be getting taken advantage of. That's what he decides. Yeah. You know, I, I quite frankly, I just still validated. I feel like my parking has just been validated by, I don't know, by Elon Musk.
He just said you don't have a clue. He's calling you stupid, I think. But he's got a really threatening you with swords. - Yeah, which, you know, there's some truth to that. I'm gonna reflect on it. - If he threatens you, swords in your dress is Deadpool, that'll work, right? Doesn't he have swords? Do you have swords in your Deadpool outfit? - I do, but they're really difficult to haul around and you can't sit down and have dinner. And people come and take them and, you know, walking around with swords is rough. - Is it? Well good, good, I'm glad he didn't physically threaten you. - Why did you call him Trader of the West, may I ask? And I didn't watch that when I watched the others. I didn't get, I saw it, I'd pop up Trader of the West. - Because he is, because he's undermining the military capability and the wishes of the U.S. public to defend against a murderous autocrat and save Europe again from an invasion. I don't, anyway, I've said this before. Had a, if the CEO Boeing in World War II was somehow had the ability to disarm B-17s, which we had, I think lent his bombers to Britain, that person, and then without cooperation with the government of the military without giving a Churchill heads up, turned off the guidance systems mid-bombing or on against the Nazis, what would we call that person? - Right, no, you're absolutely wrong, no, no, no. - Putin praised him this week. - Well, there you go. Maybe he can be a character witness at the trial. - Yeah, that was weird. I was like, mm, that's not a very good recommendation, Putin. - Bread the hearing, I don't know if he's gonna be. - Hearing, I don't know if he's gonna be a hearing. - Yeah, it's gonna be a hearing. - It's gonna be a hearing. - Yeah, you'll be the witness. You'll be the witness. If you can get yourself together, long after Tuesday. - Sorry. - You're really suffering today. Oh my gosh, you gotta get this weekend. You need to rest, no going out. And if I get my, and don't shake the drink, like you just took the drink. - I got a ginger iced tea. - Oh, whatever you need that. - This'll solve my problem. - I know, let me just tell you, you better rest as we get. I have my spies everywhere and I will know what you get. I'm gonna put a tracker on you. Anyway, I'm gonna rest, I'm just gonna do Halloween and spend time with kids and stuff like that. Anyway, as we mentioned, we are gonna be this next big week. We kick off in New York and then we're headed all around the country. Minneapolis, Los Angeles, San Francisco, Toronto, Denver, all places, but we're going on tour. We're also launching a newsletter, The Pivot Post. We get fantastic questions from our listeners every week and this will be a perfect place to answer them. Plus more opportunities for the dick jokes from Scott, God help us. And as we travel the country, on tour next week, we'll be sending out three special editions filled with photos and behind the scenes content. Go to pivotshow.com to sign up. Scott's on a new set of pants, but I love it. We're gonna have all kinds of all manner things and we'll see how it goes. We're considering some new features, including more shows. And so it'll be there first. We'll answer questions from listeners. We'll solicit essays from our friends of pivot. I don't know. We'll do whatever we want. We'll paint whatever picture we want. But I think it's nice for our fans to get more stuff. We're not gonna weekly do a long, pontificating thing or anything else. But I think it's kind of interesting to experiment in different mediums with all kinds of things. We always have to shout. And hold on, am I being hungover and sensitive a long, weekly pontificate? Are you describing any further? - No, no, no, no. - Was that passive aggressive? - No, I was thinking of someone else. No, I like your essays from a No Marcee No Malice. I think they're quite good. I like them. You're a very good writer. You actually are. I assume you're writing yourself, but you do. You work hard at writing. I don't like writing anymore as much as you do. - You think about fitness. There's physical fitness. I think the ultimate mental fitness is writing. I think it is hands down the hardest thing I do. Hands down. - I'm working on a book and I'm having trouble. Like every time. - Every time about two chapters, I'm writing about two chapters of my latest into my current book. I'm like, how on earth did I agree to do this again? - Correct. - I'm like shocked. You know, supposedly right after a child birth, the hormone comes over the female brain such that you forget how awful it is such that you'll do it again. For about every time you finish a book, I'm convinced that hormone comes out. 'Cause you would never do it again if you remember what it's like in chapter three when you're trying to figure out a way to say something unique about AI. - Yeah. Exactly. - That'll last in the six months. It will age well in six months when the hormone gets on the shelf. - It's absolutely hard. I have to say I did it for the last two days, working with people, I'm working on this book. And I just, it was like everything else is so easy. It's a pleasure. And what's right is really hard. We're gonna try to keep this one fun. And we'll see where it goes. We're not, I like the name the post. You know, Amanda came up with that name. - The post. - Pivot post. - Pivot post. - Oh, that's our newsletter. - Yeah. - Oh, great. - Yeah. - Oh, yeah, I'm super excited about that. - Anyway, sign up at pivotshow.com. All right. Oh, we're gonna quick break. When we come back, it's the final countdown to the midterms. - Support for the show comes from Zbiotics. I know a lot of us like to have some drink string vacations. I just got back from vacation myself. If you do, we'd like to tell you about pre-alcohol by Zbiotics. Zbiotics pre-alcohol probiotic drink is the world's first genetically engineered probiotic. It was engineered by PhD microbiologist to break down acid aldehyde and unwanted byproduct of alcohol metabolism. Make pre-alcohol your first drink of the night drink responsibly and enjoy your next day activities. Zbiotics is sold more than 14 million bottles and earn the trust of thousands including us. I am trying to drink less as I get older, but I do still enjoy a cocktail and my first drink before I go out is in fact Zbiotics. I was using it before they became a sponsor. Try for yourself today. If you are unsatisfied, they will refund your entire order. No questions asked. Head to zbiotics.com/pivot. Code pivot for 15% off your first order. Zbiotics is a partner of ours. - Support for the show comes from quince. There's nothing better than that sweater. You know the one, we all have it. It's perfectly warm and you can't help but reach for it again and again as the weather gets cooler. If you don't have one yet, there's probably one on Quince's website with your name on it. Quince makes elevated everyday essentials using premium materials like Mongolian cashmere organic cotton and premium stretched denim. The designs are timeless, thoughtfully crafted and made to be worn again and again. The 100% Mongolian cashmere sweaters start at just $50, giving you the softness and quality you expect from a luxury brand without the luxury price tag. I am about to get a ton of quince items 'cause I can be wearing them on the upcoming pivot tour. But right now, I am actually using my cardigan because it's which I love from Quince. It's very comfortable. It's so soft and the weather's starting to get cooler. I also have an amazing blazer. I use a black blazer that is just, it looks rich, it isn't expensive at all. So find the fall pieces. You'll reach for most at Quince. Download the Quince app for app exclusive offers or go to quince.com. Get free shipping on your order and 365 day returns. Now available in Canada and the UK too. And when Quince asked you where you heard about them, let them know it was pivot. It's the best way to support the show. - Support for the show comes from Harvey AI. It starts with a handshake, two people find common ground and shake on it. The word becomes an agreement and agreement becomes a contract, a contract becomes bound by law. For centuries, law has made our promises durable. Agreements are how we live side-by-side, set a lot of differences, build businesses, and move forward together. Today, Harvey, the AI platform designed specifically for legal work, is writing the next chapter of that legacy, helping lawyers handle those agreements more effectively and bring their expertise to more people. Harvey is trusted by more than 3,000 customers across 70 countries, more than 200,000 lawyers, 80% of the AMLA 100 and 20% of the Fortune 500 are all building with Harvey. They're accelerating review, sharpening negotiations, and covering insights, drafting first responses and more. And they're doing it all in one secure place built for legal teams. This is how the future of agreements has been crafted now. Learn more at Harvey.ai. Harvey does not provide legal advice. Users should always independently review and verify any output from Harvey. - Scott, we're back with more news. We're just days away from the midterms. Let's get into one of the more bizarre midterm battles. Alaska's Republican governor, Mike Dunlavi, has ordered an investigation into reports. The Democratic operatives recruited a candidate with the same name as incumbent Republican Senator Dan Sullivan. The New York Times investigation found the effort was reportedly aimed at splitting Sullivan's vote to help the Democrat Mary Peltola win the Senate race. Trump has called for Peltola to be prosecuted while as Justice Martin has sued to block the certification of the results of the second. Sullivan costs the incumbent. The election will go through more stuff. Trump is making a last minute push to win over voters with promises of cash payments, including a $1 million reward for tips about voter fraud that can lead to an arresting conviction, which is just nonsense. Recent polling shows Democrats leading Republicans 50, 3 to 44% among likely voters. I did a very long show with Hillary this week about that and she had some predictions of various things, but I'd like to hear yours where this is going. And if anything really stands out, besides Obama has really tight, a tight tent as they say, you know, he's just really funny. I'm not sure if it'll matter, but I have to say it's quite enjoyable to watch a stumping for various candidates. And him and Ossof together was like amazing charisma, tsunami essentially. - Yeah, I feel like 90210 politics. - Yeah, exactly, yeah. He's still got it. I gotta say he's still got it. - I can't figure out their strategy. Like as, you know, let's make our final case to the voters and tell them that anyone who says artificial intelligence is the enemy, I don't get the strategy here. having the fun to the fun.
places, you know, Kansas, you never would have thought. And then Bounties to vote are fraud, a gas at 440 a gallon, and then a favorable, you know, when Democrats had their big win in 2018, they were D plus seven this time, they're D plus nine. Now, I do think in certain places, you probably can see the Republican poll better than we think that the one that always does the Susan Collins, like the polls for some reason that may never seem to get that right. But I'm nervous because I'm really I'm really hopeful. And obviously, everyone's going to have their eyes on the Senate. What are your thoughts? I, you know, I'm not next right. Hillary had some very interesting thoughts about it. But I think probably the Democrats will win both. I just seems like that. It seems a momentum. But again, you're right. It's always a mirage, right? It's this close. I will say the candidates are on the Democratic side are terrific. Really strong, really strong, not fake strong. You know, and some people are like flashy strong. I think I just think they're all like everywhere you go, and they're all different. Amy Acton is an Ohio against Vivek, which I think should be a slam dunk given his behavior. And by the way, she's been backed by yet another step sibling about what happened to her. I mean, she shouldn't have to be. But this is what we're where we are. I saw a really interesting AOC's out stomping for people a lot, which is really interesting. She had a great, I kind of tell you, they're so they're so good. She said, do you know, they're pushing back on this communism thing? Because these are the arguments that are following communism, trans, and call it S.I. That's their like, I'm like, do these have anything to do with people's lives? I don't think so. But one thing she pushed back and I thought it was well done was common sense, not communism. And I thought, you know, in a short word in the way she delivered it was smart, with like super smart. I think every one of them is different and interesting. I just that's my takeaway. And they're very appealing. Now, the question is, where are there's these ghost Republicans who don't do polls? And suddenly going to in my experience with people, I know who are pro-Trump, they're very disillusioned, I would say. They feel very disillusioned. The question, will they just pull that lever for Trump again? If it's one, he's not on the ballot, which he isn't. And two, when they feel so take an advantage of like the Joe Rogans have switched, all those guys have switched in that regard and quite vocally. So I don't know. I don't know. I just I'm just going to I'm glad we're in Toronto. That's what I have to say. But let's look at the data. Real clear polling generic ballot average has Democrats up 8.3 points. This isn't desk HQ 79% chance Democrats take the House 238 seats. For scale, Democrats won the 2018 House popular vote by 8.6 points and picked up 40 seats. And according to Kalshi, it puts the odds of a Democratic blue tsunami at 57 percent up from 45% just two weeks ago. So that's real momentum. Now what does the tsunami mean? There's actual technical definitions there. tsunami means Democrats win at least 235 House seats and 51 Senate seats. A blue wave, 218 House seats, but Republicans maintain control of Senate. Kalshi has at 82% and then a quote unquote new category, mega tsunami, 240 House seats, 54 Senate, 25%. So the momentum is just it usually tightens at the end, right? Yeah. And but it appears that the momentum is what the my favorite is what he's offering Republican voters. A five that what Trump is offering, a $5,000 Trump dividend to every adult citizen for Republicans hold both chambers, $8 billion in direct payments to farmers, up to $30,000 for government fraud tips, and settling the remaining camp on water contamination claims. That's my favorite one. Only if Republicans win. I'll settle the camp on water contamination claims if we win the House and the Senate. That's kind of an odd one. Yeah. Yeah. The crowds, I never go by the crowds, but it's really interesting to watch in Texas, the huge, I mean, Tel Rico keeps having to get bigger and bigger venues and Kenpaks isn't these sad little old people places like that. But old people vote. So, you know, I don't know, like will people actually vote? That's the thing. I think it is, you know, it is, get out the boat. The other thing that I think people are not paying enough attention to is Trump's outbursts, these weird, you know, Jade or like he does them, can't pronounce Kenpaksen's name. There's something going on with him, because he keeps doing it. That's just what happens old man. We just start making noises involuntarily. I know, but honestly, it's really astonishing. The two things that people, I'm kind of surprised were these new rape allegations against him. And I know the report from Congress was democratic, but this woman was in the New York Times piece and said she couldn't say everything. She had been vetted by the New York Times and then she has this woman said she was violently raped by Trump. And so I'm surprised that there's not more covers that. It's probably because newspapers really have to lock those things down, before they say anything, but there's just this guy has fallen apart in real time. And I think the scary part to me is not so much, I think the Democrats will probably sweep. But if they don't sweep enough, or even if they sweep, what happens between November 3rd and seeding these people, like what craziness could ensue? And because he's obviously cognitively declining rather precipitously, that worries me. And what will his accolades do? They may just abandon him if he really loses a lot. If he loses his power, the emperor has no clothes. On November 4th, he's a lame duck. He's a lame duck. But speaking of my newsletter, which you hate, I'm just not some stack. The title of it, the title of it, anyone can get it. I love no mercy, no malice. I read that every week, and that's not true. I read it online. I appreciate that. Anyway, so 440,000 subscribers FYI. Anyway, so the title of this week's no mercy is criminal. I guess it was about, we give it one guess. Yeah, I know, I know criminal. Yeah. But yeah, I think, like, I've never thought the cognitive decline or the health stuff or whatever is, I've always thought it's Democrats kind of hoping. But his criminality, it appears like, you know, you know, have you, do you remember those, those 70s or 80s TV shows where they said to someone, here's a shopping cart, and you have two minutes, that's where as much shit is possible. And get out of that. And you just see, you just see Western capitalism and consumption culture at its worst. And that he feels, he's, his lawyers have said, you're, no one's going to put you in prison, which I actually agree, just do whatever you can. And it feels like he's just get, he had more stock trades than the rest of Congress combined. I know. Yeah. And he knew it was going to come out. He files them. He doesn't care. I think he literally believes I'm immune for this stuff. I got to think we're going to find out about all sorts of things. Well, the Jared Kushner stuff, some of this recording that's coming out. It's just, there's a lot. And it's all linked to money. Every single bit of it is linked to money. It's not, the Marxist presidency for me is there's a picture of Jared and the bonka. And they're both very attractive. They both look really good. And it said, just FYI, one thing they share, this couple shares is both of their fathers are convicted felons. That kind of marks this presidency. Yeah. Absolutely. Anyway, we'll see what happens. We'll see. We'll be, we won't know in New York, but we will know when more in Canada. I think we'll know. We'll see. Toronto, we're excited to come. It's not a bad idea. We're going to be in Toronto. I know. So I said we're going to just we may never come back. We may never come back. What happened to Karen Scott? And they live in Saskatchewan together. They have a, they have an alpaca farm. It's really fun. Scott is drinking. He's got sheers all day. He's here's playing. I'm enjoying the hardware store. He bought a pickup truck and pulled up and yells at the help. Yeah. Exactly. Yeah. That would be so much. That would be such a good reality show. Yeah. Didn't get Sarah Pailin up there with us. Okay. All right. We're not going to do that. But let's get to some actual tech earnings. And Microsoft beat Wall Street quarterly expectations with revenue up 19%. It's Azure cloud business grew 48%. That's which is a lot. The capital spending came in below expectations at 45.2 billion. Shares rose nearly 4% in pre-market traders. It looks like they got a hold of their spending. Microsoft is offering voluntary bias about 60,000 employees. It looks to reduce costs. We'll continue to invest in AI shares for alphabet though. We're down 13% at the time of the taping putting the company on course for as biggest ever post earnings drop. The Google parent company missed Wall Street quarterly earnings expectations for the first time in nearly four years despite revenue growing 25%. The company reported negative free cash flow of nine billion while long-term debt jumped to nearly 480% to 125 billion cloud revenue more than double to 30.7 billion but search advertising revenue missed expectations growing 12%. Google's Gemini app now has reached one billion users. I will note the company's facing questions about its AI search tool, including for me, which wouldn't give a straight answer when asked who won the 2020 election. The company responded to my threads post about the issue saying they're fixing it and there was a technical gap in the 2020 election information. Very sus because cloud and all I checked all the others were just fine. And the only one they wouldn't answer was about the Biden election and they answered the Trump ones very clearly. Give us a thought on these earnings because they're sort of two different ones. And I do think I find myself in search using cloud much more, that happens to be my choice, than I do Google. Although I still use Google search, I don't. And Gemini, that's on the Google search page. And Microsoft, I think, showed a little more discipline, but your thoughts. - Well, one, just with respect to market expectations, one beat them and one problem, you know, probably miss them. Microsoft, Microsoft did nearly the impossible here and that is they thread the needle between what is, you know, it's a reasonable amount of CapEx while maintaining a credible top line growth. They had a beat on revenue, they're up 19%, and Azure was up 48%. Well, CapEx came in below expectations. So this, again, this is the earnings report that was able to kind of thread the needle that the market wanted, and that is growth without, some of the runway spending that marks the age, right? And then as a result, shares popped 4%, while Alphabet actually created in the wrong direction. The more interesting part of the story I think is that a 60,000 person or employee buy-out offering sitting next to accelerating AI CapEx is the clear, like our K-shaped economy or two workforces, if you will, is really the market for tech, and that is humans get bio packages, and GPUs get huge blank checks and bonuses. - Oh, that's an interesting answer to me. - This is what Mark's AIH, who we beat on earnings and we're asking 60,000 people to leave. - Yeah, there was a great post, some said, to all software engineers, 19, I don't know, A3 to 2026, you had a good run or something like that. - But the headlines, and this is where the monetization and the idolatry of the dollar and shareholder value over trumping everything in the age it is America right now. - I think the headline a couple decades ago, and definitely 40 or 50 years ago would have been Microsoft laying off 60,000 people. Instead, the headline is top and bottom beat from Microsoft. It's just whatever, the God we pray to now is shareholders, and then Alphabet was actually a bigger story, and this was Alphabet's first top and bottom miss in nearly four years. And the stock shed 9, 10% after hours. That's the worst post earnings reaction on record. Despite revenue actually growing 25% and beating some estimates, that's the AIH, that's how crazy the expectations have become. - Yeah, but the long term debt thing, I think, is what freaked them out, the long term debt jumping, the negative cash flow, even though things did grow, right? And it seems like search is something's happening with search or it's shifting. Let's just say it's shifting. - Well, free cash flow went negative to 9 billion, and second straight negative quarter, catbacks hit get this 51.4 billion in a single quarter, that's more than Google's clouds, entire quarterly revenue. And long term debt is up six X, year over year, from 21 million. - So what does Wall Street do when they see that? Is it lack of discipline or things are shifting for this company in terms of its revenue profile? - Well, no lack of ROI, and that is Microsoft was able to say, okay, our catbacks is actually less than earnings or more than expected, whereas the fears run all these guys, that the returns are just not gonna catch up. The R is not gonna catch up to the O and the I. And that the catbacks is just become, they're like someone who can't stop eating, and it's become an arms race, and like the Soviet Union, it's gonna collapse on itself, trying to keep up with one or two players. Right now I would say meta, and you would argue alphabet. I'm sorry, meta and Microsoft are probably this accurate, probably showing the most visible signs of return on a massive catbacks. - Still massive, still hasn't, but showing signs of it, right? By the way, it's technically R and I, O is just on. - Thank you. - Yeah, that's good. Again, more blinding insight. Is there an A in an I in an R, and also it's just that, the 2020 glitch that it can't answer who won 2020, this kind of technical gap is just really bad timing for an AI search tool won't state a settled fact. And that kind of undercuts the very AI narrative, the company needs to justify the catbacks. - Yeah, the thing is either you're not good at it or you're sus, there's no good answer here, right? In terms of how they couldn't do it, that after all this time. - Yeah, so look, Microsoft thread the needle and it looks like alphabet from the market perspective is on the wrong side of the needle. But again, I think the number here that is the most important number is 60,000, 60,000 people. I mean, that's enormous. - So I wonder what they'll do if they don't get 60,000? What are they? When you do a lay, I've never done a massive lay of obviously, but you're aware of that, you've had more experience. When you offer 60,000, how many do you expect and then what do you do if there's got to be a number they are going for not 60,000, right, presumably? - Yeah, so they calibrate it probably using AI and say if we offer this much. But what you also do is you have a hammer and that is basically buyouts come with sort of a Sophie's choice and that is take it now, maybe you don't want it. But by the way, if you don't accept it, there's a chance you'll be laid off with a much less generous severance package. - Yeah, that's what they're doing at Paramount. They're doing in different parts of the company, volunteer. - And folks, you know who I always over indexes on these lists, just FYI young people, people who are working remotely. It's just much easier to laugh people you don't know. And you're dramatically, the odds of you being laid off are dramatically higher when you work remotely. But what you do are typically in a lay off and I've been through a bunch of these. You go to the people who, you don't like to say this out loud but I believe this. 10% of the employees at 120% of the value than the other 90% are negative 20. That's not that you don't need them. But they take a lot of management time. They're good, not great. Obviously, just statistically half the workforce is gonna be at average or below average. Typically, what you're doing a layoff is you go to the really key people and you say this is what we're doing tomorrow. We're actually gonna increase or this is why you are so important here. And then you do the layoff. And they've already calibrated of those 60,000 people. How many they want? They want to leave, they've already, they've already, you know, if it's a generous bio-package with a hammer on the back end, they might be expecting 40 or 50,000. If it's, but when you offer, I think when you offer someone to buy out, you also gotta keep in mind in terms of morale. Is that person gonna be really motivated from that point? Even if they're motivated, I think just gonna be fearful. So it's not. And typically when you do a layoff, and this is an aspirational, my advice is always go deeper than you want 'cause this is like surgery. And every time you open up somebody, it takes the corpus time to respond. You don't wanna do this every year. - Yeah, yeah, have you ever been laid off? - Well, technically I've been far from every job I've ever had, but because I've only had, well, the only job I've ever capped was Morgan Stanley. That's 'cause I was just into your analyst program. So you weren't fired. You just went back to business school. I've been fired from some of the best restaurants in Los Angeles. I've been fired from the Chard House, Monties, Islands, which was a burger change. I was fired from the restaurant at LA Fitness. I've been fired from most tonnigrate restaurants. - I wonder why. - Losen, and I'm not a great, I know this is gonna come as a surprise. I'm not an outstanding employee. I know that's a shocker. No, I've never. - I've been fired twice. One, from selling chipwitches, 'cause I wouldn't go to the mall and sell chipwitches on July 4th, 'cause I thought I'd kill myself, I had to do that, and wear an outfit. And two, from my first job at City Paper in Washington, DC, I was, he, the guy Jack, I think I deserved it. In a lot, I was too inexperienced, but he hired his friend, so that was it. Thanks, Jack, that worked out well for me, actually. - Yeah, look, I don't, layoffs are just, I think, I mean, I don't wanna say I'm a fan of layoffs, and my view on layoffs is you're patience about the decision and you are generous with terms. And I think there's a good way about it, and I've hired and fired at much people, and what I find with the right way to layoff or fire somebody is the following. People always make excuses for why it's not working out. And as soon as I start to hear these, these smells or things like, he's in the wrong role, or he just needs time, or we haven't done a good job at simulating him, okay, it's not working. And you're not doing that person any favors by keeping them around, and as soon as you let them know, it's not working, I've never been one of these people, you have to do this sometimes in public companies where security walks them out. I think that is just stupid and dumb, and just not kind. You sit them down and you say, it's not working here, and we can talk about why, but what I'd rather talk about, is how we're gonna help you find a place somewhere else, where you're gonna be more successful. - Yeah, thank you. - And if you're in a small company, and it's doing well, you can offer to keep paying them until they find another job. You can offer to keep their insurance, and you can try and help them find another gig. And you can say, look, I understand you might be angry, but I don't want you to be scared. And I think people really appreciate that. They might look back and say, he shouldn't have fired me, but they weren't, you know, they weren't mean. They weren't, you don't, you want to treat people, the sooner you make the decision, the more of the magnitude is the more generous you can be in terms of severance, but I've always been like, okay, stop making excuses.
This isn't working for us, and that's working for, isn't working for that. Yeah, that's hard. It's difficult to fire people. It definitely is. The best scene of firing ever was in broadcast news when they were laying people off in, in, in, in, in. Cool. I hope you die soon. I hope you die soon. I hope you, it was me. That was the finest scene I've ever seen. Jane Talks. That's a wonderful movie. Wonderful. Jane's Brooks just amazing. Yeah. Holly Hunter. William Burke. Everyone used to compare me to her, by the way. And that, you know, how does it feel to be, think you're the smartest person in the room and people. People. You know, he said, he says, it must, it must be nice to be, oh, it's be the smartest person in the world. And she's like, no, it's awful. You've always sent that to me. They always, I actually would answer, yes, it's awful. It's a wonderful movie called The Piano, but I love her. I love her so much. Let's bring Holly on. Let's get Holly as a guest for Pivot. Where is she? You're right. We should. We love her. She was in succession, if you remember. She played, I do. It was great. Wherever she goes. All right, Scott, let's go on a quick break. We come back. We'll be talking about NVIDIA and meta-cozying up. Hi, everyone. I'm Cara Swisher. And I'm Scott Gallowayne. Twice a week, we get together on Pivot to sort through the biggest stories in tech business and politics. And we're taking the show back on the road for a live tour in November. So we'll bring hot tags. I'll bring the insight and the dick jokes that Cara will try. The key word is try to keep me in check. You'll get to see her hit me in person live. I'll do it. If someone has to do it. We'll cover AI, whatever chaos Washington has cooked up that week, and every billionaire is misbehaving. That's all of them. And you'll also get to participate in audience Q&A, so bring your best questions. Scott, we'll probably answer ones you didn't ask. We also have secret special guests, which you'll enjoy for every city. Get tickets at pivottour.com, that's pivottour.com. We are selling out, so don't wait, and we look forward to seeing you. Support for the show comes from DeleteMe. In the age of AI, we're all vulnerable to scammers using our personal data against us, especially since it's all floating around the internet. Here's what you do to better protect yourself. Go to joindeleteMe.com/pivot and enter the code Pivot. You'll get 20% off DeleteMe. DeleteMe removes your personal information from data broker sites that sell it online. I have used DeleteMe for a long time. I love their dashboard. It's really smart. The problem is, I find out terrible things about how my data is being abused online, including putting stuff together where I used to live. My family members, other things like that. Much of it is actually inaccurate, but at the same time, it really makes me feel very vulnerable. And now, since everything is so digitized, it's really important to keep on top of this stuff. Take control of your data and keep your private life private by signing up for DeleteMe. You can get an individual plan for a little over $8 per month, the discounts, get even better with a two-year plan or when you enroll with your partner or family. Now, to special discount for our listeners, get 20% off your DeleteMe plan when you go to joindeleteMe.com/pivot and use the promo code Pivot at checkout. The only way to get 20% off is to go to joindeleteMe.com/pivot and enter the code Pivot at checkout. That's joindeleteMe.com/pivot code Pivot. Are you getting enough care and Scott in your life? We think not. So we're launching a newsletter for our super fans to get even closer to us and to each other. Starting this week, you can sign up to get the Pivot post delivered to your inbox. We're going to respond to your letters. Pivot fans are so smart and thoughtful in every week. We get incredibly substantive questions about business and tech news and we don't have time to respond to it on the show. The newsletter will be a place for us to answer those queries directly with the help of some of our expert friends. If you have a burning question about a trend in business, tech or finance, that we can help answer send it to
[email protected]. We know you have other questions too about parenting, careers, dating and mating. Keep sending those our way and every now and then we'll take a break from explaining the news. To also answer your advice questions, we cannot be held in response for any of the outcomes if you follow Scott's suggestions for your personal life. Our first newsletter will drop next week. We can sign up now on our new website at pivotshow.com, that's pivotshow.com. Scott, we're back with more news. Invidia and meta are teaming up for the latest circular AI deal, which I've called the Circle Jerk, with Invidia investing $3 billion in meta, part of an expanded partnership focused on the AI agent muse. This is tied to meta's new plan to raise nearly $100 billion through stock offerings to fund its ambitions. Chipmaker AMD is also getting in on the action investing $1 billion in meta's equity offering. Invidia is really spreading the money around at this point with stakes in SpaceX, OpenA, Anthropic and several other companies. Feels CiscoE, this is sort of the kidnaker in these deals. It's worth noting invidia is reportedly being investigated by the DOJ over its acquisition of AI open source platform hugging face and how the impact competitors feel so Cisco to me. It's probably what one would do here, but it feels something, something not good. Also, this incredible story came out a little while ago, US intelligence agencies believe Invidia CEO Jensen Wong was targeted by a Chinese spy who did business with him according to a report in the New York Times. Trump was briefed about these findings about a year ago and chose not to do anything with the information. Your thoughts? Okay, so just to review, Invidia is investing in meta who is raising money in part to buy Invidia chips, while AMD also invests in meta's equity raise. This is literally the textbook definition of a circular financing structure. The same dollar is round tripping through a chipmaker, a cloud customer and captable in one closed loop. And when you have Invidia owning and investing, owning stakes, the investment in SpaceX open AI and anthropic simultaneously, essentially, the question is the following is Invidia's demand signal organic or self-funded. So very good way to put it. The metaphor is this is a company that's selling shovels, it's investing in the miners and it also owns a stake in the bank lending money to the miners to buy the shovels. At some point, you know, if if picks and shovel stops being the safe AI trade and starts being the whole mine and the market looks at these deals and goes, okay, these circular deals work until they don't and then they unwind really fast. I was guilty of this back in the, oh, a well, that was a well, so yeah, but even small, it happens everywhere. In the 90s, when I was raising a ton of money for my companies, I knew all these entrepreneurs and I'd be like, oh, you're selling this software, okay, I'll invest 50 grand and I'll buy your software package from my small city business being funded by so-called. We were all kind of buying each other's products. Well, they would call it a virtuous circle that, and I used to call it a circle jerk at that time. Like, I was like, okay, it's a circle, but not the guy in your think it, and maybe a circle jerk is virtuous for the people getting jerked. But it does feel funny, and it's interesting that the DOJ might be investigating them because he has done everything possible to suck up to Trump, Jensen Wong, so he- That's really smart. I know. I know. Being able to feel like, remember, did you ever see that chart of every crypto company that- Mm-hmm. I know what you're talking about. Stan Bankman treated invested in the FDX. He was, he felt like he own, it felt like he was financing the entire sector. Yeah, exactly. So what happened? How does it go wrong or how does it go right? Let's be fair. What goes right is that Anthropic keeps, which was up, its revenues dropped 14 acts in the first half. And to be fair, despite all the critics you're going to hear on proxy markets of the I trade, if they can keep anything, even if that growth gets cut in half, they are, they are, they do look to be recognizing scale relative to CapEx. You know, this could be a company that's doing 200 billion in annual revenue by 20. Yeah, the Google. The Google, it's the Google. Yeah. And at 10 times, if it goes out of 2 trillion, 10 times revenue just doesn't seem that, you know, that seems cheap compared to some other stuff. Yeah. It's the Google. They are who had a stake in Google. If you remember, it did investments in Google because it was, Google was one of its vendors. You know, it was just one of those similar things. So what could go right is it maintains its current growth. It's able to reflect margins. It's able to show scale around its CapEx or an anthropic as already the second greatest revenue per employee in the world. It went from 1.4 million to 6 million per employee and it's second only to NVIDIA and I'll probably pass NVIDIA if it continues to scale like this. You're essentially getting, you know, it's growing much faster than NVIDIA. It's going much faster than SpaceX and you're probably going to, in this IPO, I'm actually going to read the S1. It's actually quite bullish, distinctive and existential threat or some huge scandal. I think what they're going to be able to honestly say is you're getting greater growth with us than NVIDIA SpaceX and a much lower multiple. I think that'll be very attractive to the public markets. But how this unwinds is one of these guys. If NVIDIA's demand signal starts to look really, really bullshit and really artificial and propped up and all of a sudden NVIDIA's stock starts going down and NVIDIA's no longer feels like it can finance these companies. The whole thing just on why? It's like pulling on a string, right? The whole thing on why it's really fast. You mean if they get one win like an anthropic, it could be fine, right? But I don't think that helps NVIDIA necessarily. It has got to have a broader-- Well, it's the internet again. I mean, everyone, this will correct at some point. That's just a natural part of these tax cycles, right? the railroads.
did transform the United States. The technology was transformative. There were tons of bankruptcies along the way. The internet did transform the United States economy. Amazon and Cisco lost 92% of their value, and then one of them came back to go up 40X from there. So the technology and many of these companies will survive the corrections. The question is how severe is the V down? And then the hard part is when does it happen? And none of us know. And in the meantime, and I had been with Barry Rittles the other night from when the economist perfectly called the crash of the.com bubble. They did it in 97. They were early. The NASDAQ doubled from there. So again, I always go to the same thing. If you're an investor, always be in the market, but always, especially if you're a little bit older, try and be diversified. Yeah. So you know where it's going. One of the things that worries me is they're all, all of these companies have three big customers. And that's it, right? The work that take care of most of their thing. And so that's the, that's the worry I have. Concentration. And it feels very, and Nvidia is right in the middle of it. But it's going to, going to something's going to break at some point. Former Yahoo CEO Mercerer is facing backlash after revealing she used her new AI assistant dazzle to come up with three things that make her 10-year-old daughter special. Marit later said she was not relying on AI to explain her job, but rather testing the apps abilities dazzle. It was a really bad quote. Dazzle uses a person's camera role to learn about their life and preferences. I have a long history with Mercer. I was, I was pretty tough on our CEO, Yahoo, which she did a terrible job at. I'll say she was a former Google executive. And she's sort of trying to, you know, make her differentiation in this AI race. She's tried a bunch of companies that haven't really worked out since leaving Yahoo. But I just want to know if you were an AI chatbot, what would you say, the three most special things about me are? You can't think. Oh God, just call Clawed. Yeah, the three most, but I know I would just leave it at you're just special. We'll leave it there. You're just special. You're just, but you're our little special by Kestra. You're very special. It was, it was really. She should not have said the thing. She said, honestly, sometimes she's very not self-aware. I'm not so sure this was so fair. I'm not a fan of Mercer's, but I have to say, I think if you know her, she's, she has, sometimes awkwardly communicates, I would say. And this was a real, this is a corker of bad communications in a piece. She probably thought it was going to be positive about her efforts. Mercer was in over her head at COV Yahoo. It was the total pump and dump. I mean, back Dan Loeb took a big stake, managed to get a guy fired for saying he minored in computer science when he didn't, which I thought was ridiculous. And then, and then managed to position her. You lied about, let me be clear. I wrote some of those stories. He lied about a lot of stuff. He was, he wasn't the reason he was fired, because there was a, he just, he just constantly wasn't telling truth on a dump. Oh, is that right? I forget his name. Scott, something, Scott, I feel like Scott was his name. And, and then she was painted as something like sort of heroic. Yeah, we know anyone who knew superhero wasn't going to be the case. And she almost blew the tax status and the Japanese stake. She managed, I think, to cut EBITDA revenue by 20% EBITDA on half and meanwhile walked away. I think with close to a quarter of a billion dollars, which today almost seems quaint. Yeah, remember, Enrique, she hired the sales guy. Oh, and fired him seven months later, but she, he had negotiated and she'd agreed to a hundred and ten million dollars. Yeah, he did well. He went there for seven months, got fired and walked away with a hundred and ten million or so. Yeah, yeah. I don't remember, that whole time. I wrote a lot of stories about, oh, not just her, but other CEOs. But nonetheless, yeah, I, look, she made a stupid quote. She seems like a nice lady. I hope she does well, but I wish stuff around your kids and AI. Yeah, you have to keep it. I think it's a little bit toned up because people are expecting those kinds of observations about your kid to come from you. And it just sort of feels, it feels uncomfortable. Like, like, Claude, please, please feed my child and yeah, or do the story. So that story thing, make a story in my voice, so I can have the story read by AI to my child in my voice. There was one posting like that. Tech people shouldn't talk about AI in children ever, ever. There's not just Marissa. There's a lot. And you know, most people expect me very critical. I think she just said something stupid. Knowing her, I have a feeling I know what she was going for. She is an awkward communication style and just tech people don't talk about how AI is great for our kids when most people are super worried about it. Just that's not a great way to sell it. Anyway, one more quick break will be back for predictions. The people of the Great Nation of Texas have not elected to Democrat to the Senate since 1988, but this year that might change. James Talleriko, a Presbyterian seminarian, school teacher, self-convests, cringe progressive. Yes, I was doing it maybe in an annoying way. Is leading in most polls. His opponent, Republican attorney general Ken Paxton is facing two headwinds, the price of gas and everything. Also, Paxton has done some very, very bad stuff. So Republicans have been trying some messaging. Questioning whether Talleriko is man enough for Texas. Lowty Talleriko, two week from Texas. Tofu Talleriko? They're questioning some other things too. I love you too, sir, in a totally platonic way. To be clear, I'm the vice president, not James Talleriko. Mimaw would be appalled, but what do Texans think? Are they buying it? On today's explain from Vox, we pay a visit. It's hard to be a cowboy. Today explain drops every week day. Hey all, it's a step from America actually at Vox.com. We know that you have big questions about the world. And so do we. At Vox, we focus on covering the things that matter in your life and the things that make you curious. Whether that's the big politics questions of the day, climate solutions that might actually work or hopeful news in cancer or Alzheimer's research. We believe that journalism made for the everyday curious person can make a difference in making a better world. And if that sounds like something you want to be a part of, Vox now has a brand new app. And it brings all of our journalism together in one place. Go to Vox.com/app to download today. I'm Bridget Reed. I'm James Walsh. The Alexander brothers moved in a world of multi-million dollar homes, exclusive parties, and powerful people. Behind that glamorous lifestyle were years of rumors and allegations that they were committing sexual assault. In our reporting for New York magazine, we investigated what people knew and heard from women who came forward to tell their stories. Now that reporting is the basis for a new three-part docu-series, the wolves of real estate, the Alexander brothers. You'll see exactly how privilege protected them and how they were finally stopped. Stream all three episodes now, only on peacock. Okay, Scott, let's hear a prediction. I think in one story we didn't talk about that we probably should have Instagram or meta-announced a new program called Features, which will now allow creators to upload up to 90-minute long videos to their platform. This is obviously, they look at, they look at the success and shareholder value that YouTube is driving and marks like, "No, I want some of that." And they want to challenge their long-form dominance online. And I think what they sense is the one that was challenging their dominance. Netflix has its own problems. And so I think they see an opportunity. And also they have three billion daily active users. And talking about AI, I would argue that the best use of AI right now is meta and video. I just find it frighteningly addictive. So you mean on Instagram or on throughout the service? I find Instagram reels. Yeah. I know you love them. I feel like it's turning my brain inside out. Right. Yeah, absolutely. It's frightening to me how on point the next video is going to be. Yep. I agree. I agree. I agree. And I don't think people realize just how many millions of data points in human psychology and behavioral psychology, they are measuring a billion times a second to try and keep you on that screen for just a second longer every day. So currently, and I think where you're going to hide, so my prediction is boring. By the end of next year, Nielsen will be reporting streaming data on meta. And just in the past couple of months, meta has begun rolling out its Instagram app for the Smart TV, which will begin short-form reels and L long-form features in the living room. In some, Instagram's coming for the TV and for streaming media. What's interesting is they're not paying people. I think YouTube pays about 50% of its revenue out to creators. So the question is, and I tasked my team with figuring this out. I'm like, is this a top of the funnel vehicle? Because for the next 90 to 180 days, if you want to get into features, you should do it now because they'll juice the algorithm to display. So you'll be popular. Yeah. You know, they're in a bit of a beef with publishers. They're trying to put these terms where everything you put in there, they have rights to scrape. There's a big fight going.
going on. And they've slowed down their rollout of these things. So just keep in mind they're always looking to steal your shit everybody that you're putting in there. And so they're in the midst of a big fight with people. And again, they were going to put these rules in place for what you uploaded. And there was a lot of pushback from all manner of content creators, especially professional ones, of taking your stuff. But this is, there's just not getting around it. This puts more pressure on the streamers, including Netflix. Streamers now won't just be competing with YouTube over the television. They're going to be competing with Meta. But content creators do not love, like if you put it on Netflix, you don't expect them to steal your shit. Expect Facebook to steal your shit in some way that will help them. That's, it's a, it's a different relationship that it should make you pause. That's always been true of Meta. And every day more and more people decide to upload their content. Right. I get it. But that they're in the midst of that controversy, too. But so you think they're going to keep up. I'll tell you one thing about YouTube. And I just love your observation is I agree. You, you, you go from thing to thing. And it's really addictive in a good way, like in a weird, good way. I find a YouTube as popular as is. And I get why it's popular. And once you figure out rock the way it works, it's great for you. But it's rather confusing still. It's never, and I've talked this about the, to the CEOs of YouTube over the many years. I just, it's hard to go, like, it's hard to organize it. It doesn't seem organized. It seems random as shit. And I don't get as much. It's not as, Meta does a great job at organizing. I don't know how to put it like programming or something, whatever you might call it. I just want to look at, but just, it'll be interesting to revisit the following chart in a year when Meta, you know, what is one of the best operating companies in the world with a ton of content. And they always forgot a way to get creators to give them their content for free. But right now, if you look at the share video or TV, streaming is now half cables, 19% broadcast is 18% others, 14% and now let's look at the streaming market. The big switch here is that Netflix was near double digits. And YouTube is low double digits. Now YouTube is 16% and Netflix is a YouTube has twice the watch time of Netflix. Then after Netflix, at 8% it drops down to five a Disney for Amazon Prime. This is interesting. 3% from Roku, which was just acquired by Newscore, correct or far. Newscore. Well, so far, it's under investigation, under review, 2.3% for Paramount Plus. But when I wasn't expecting to say 2% from 2B, by the way, 2B has greater share of streaming than peacock at 1.6% much lower than I had thought, 1.4% for one of brothers' discovery. HBO punches above its way class, but still sort of artisanal. The real question is, when all of a sudden meta's in this game now, who are they going to take share from? And also, I'm just fascinated to try and figure out what is the incentive, right? And I find I'm spending more time on YouTube. I'm watching East of Eden on Netflix right now, which I think is just fantastic. But where, when meta shows up, the question I have is, I think it's going to be very disruptive here. I'm just trying to figure out who they're going to, who they're going to take share from. So, give me very quick. Who do you think, if you had a pick right now, just top of your head YouTube? They're coming for YouTube. That's who they're coming after. The thing about momentum is momentum creates it's no momentum. And I think Netflix has probably got further to fall right now because the momentum is just so bad for them. I do think they're going to come back. I've even been looking at the stock, because I just think the management team is so strong there. But Zuckerberg looked at, Zuckerberg basically looked at, you know, snap and said, okay, don't kill them, but injure them. Just we want to keep them alive and make them sort of irrelevant. I think he looks, I think he's looking at YouTube and is like, okay, girlfriend, I'm coming for you now. And I have such custody of the consumer. And people, the bottom line is people are using mostly YouTube. And I actually don't know this. My thesis is people are using YouTube on a computer. And the flow of the river of attention is flowing massively downstream to smaller and smaller screens. I am consuming more and more content on my phone and less and less content on my TV. Did you get the duo speaking? I will though. I heard you bought one, no? I did and now I canceled it because I kept reading all the reviews. I may rebuy it again. I don't know. I mean, that's what you anyway. So I got some time. So it does, but various people see, I just, I keep, I should stop reading reviews and just get it because I'll probably get it. But I don't want a bad experience. Some people think it's real clunky, but others don't. I probably will get it. Anyway, we want to hear from you. Send us your questions about business sector. Whatever's on your mind, go to nymag.com/pivot to submit a question for the show or call 85551pivot. Okay, that's the show. Thanks for listening to pivot. Be sure to like and subscribe to our YouTube channel. And also sign up for
[email protected]. And just a programming note will be in your feed a little later on Tuesday because that episode will be freshly recorded live on Monday night. Scott and I will be in New York. We're always worth the wait. I'm very excited about my week with Scott. We have a good time. We discuss things. We braid each other's hair. We have a really nice time. We spend a lot of time together, but we really like it. It's really fun. And we've got some great guests. So, you know, if you're in any of the cities, we're in please come and say hi to us. We'd love to see you. It's true. Today's show is produced by Larry Neiman, Zoe Marcus Taylor, Revenant Todd Weisman. Earning a tight entry of this episode, thanks also to Drew Burrows, Missiveira and Dan Shalan. The shark croat is boxed media's executive producer podcast. Make sure to follow pivot on your favorite podcast platform. Thanks for listening to pivot from boxed media. We'll be back next week for another breakdown of all things tech and business care. I will see you in New York.
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