Daniel Newman, CEO of Futurum analyzes Alphabet's earnings numbers and explains why Meta is the world's most consequential company. He argues that Meta's involvement in AI and chip manufacturing helps shield it from Trump tariffs and other competitors.

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

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Daniel Newman, CEO of Futurum, has highlighted Meta as a highly consequential company in the current tech industry landscape. Despite competitors like Alphabet and Microsoft revealing substantial earnings and investments in fields like cloud and AI, Newman holds Meta in particular esteem. He points out that Meta's strategic involvement in artificial intelligence (AI) and chip manufacturing provides it considerable resilience against external challenges such as tariffs and competitive pressures.

Newman's analysis of Alphabet's situation reveals ongoing challenges, particularly regarding its visibility in AI investments and the pressure from antitrust actions. Additionally, despite Microsoft's somewhat underwhelming earnings report, Newman finds its diversified approach across applications and media promising. However, it's Meta's extensive user base and innovative strategies that are drawing significant attention. Newman notes that Meta caters to 3.3 billion users daily through its various apps, demonstrating its significant market reach and impact.

Despite acknowledging TikTok as a significant competitor, Newman asserts that Meta's diversified product range and existing strategies make it well-positioned within the market. TikTok's narrower focus presents opportunities for Meta to continue thriving. These dynamics, according to Newman, fuel investor confidence in the company. Meta’s strategic resilience and adaptability are deemed crucial in sustaining its growth trajectory amidst a competitive environment.



Meta the 'most consequential' company in the world: Futurum CEO

Microsoft came up just short, it was like in the 30%-ish, and Google did the exact same thing with Google Cloud. I think everybody wants to see, you said it before, the AI ROI. We heard their CFO just before I came on talking about the $75 billion in spend. When does that $75 billion in servers, network, data center, infrastructure start to create what's easily visible as return? And that question mark is further down the line. What I do like about Alphabet is they have a really great customer zero story. A little bit like meta. You saw that they beat on top, they beat on bottom. A lot of the AI that they're building is not just for cloud and infrastructure deployment. They're training these Gemini models, they're making money that way, but they're still almost 90% of the search market. I'll add to that, though, that 90% continues to cause consternation. They continue to be under attack from antitrust. China came into the mix today. And so long as there's kind of all this uncertainty around Google, and they didn't hit that cloud number, they're not quite making that AI number clear to the market. I think that Google will continue or Alphabet will continue to see a little bit more selling pressure in that lower valuation that it has right now, which could be lucrative if you think they're going to get through this. I wonder what your pecking order is, Daniel, within the tech names, given all the earnings that you've seen thus far. So right now, you know, I still really like the diversification across the Microsoft portfolio. I know they came in a little light, but I do like their bullishness and their clarity on their AI number. They came out with that $13 billion number. I like that they're diversified across applications. They've got a little bit of consumer exposure, some media and advertising exposure. So I am really happy with them. I also like the, you know, I like Alphabet. So I came out and I said, look, I think Thomas Kurian's done a great job with Google Cloud, turning it around that moat with their core advertising business is great. But maybe more than any of them, Tanvir, I love Meta. And this is not something I said along the way, but Meta has become possibly the most consequential company in the world. They're building AI, they're democratizing it, they're open sourcing it, they're building their own chips. And they got 3.3 billion people a day using one of their apps. And that company just continues to zoom. They are tariff proof, bulletproof, Trump proof. They are just doing incredible. And I don't mean that in a negative way about Trump. I just mean, no matter what he says, Meta just seems to keep going up while others have not had that same fate. But they're not TikTok proof. Well, we're going to see about TikTok. I mean, TikTok has been a formidable competitor, but TikTok has a much smaller moat. It's a much less diversified product portfolio. I look at TikTok as a very interesting play. It's going to continue to cause a lot of uncertainty in the market, the relationship between China, what ends up happening. Is it going to be Microsoft? Is it going to be Oracle? I think there's some good in competition. But with all the certainty around TikTok, I actually think that's a good thing for Meta. And I think that's part of the reason people have become so bullish and investors continue to pour dollars into Meta.

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Washington

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Jerusalem

Middle East Conflict

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Kyiv

Ukraine Invasion

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Dhaka

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Tehran

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Taipei

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Redmond

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As Suwayda

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