Meta’s Earnings Surge, Microsoft’s Azure Lag, Tesla’s Challenges, and Hospitality Opportunities

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Uploaded: 2026-01-30T23:15:55.815612+00:00
Channel: Financial Education
Description: Meta’s Earnings Surge, Microsoft’s Azure Lag, Tesla’s Challenges, and Hospitality Opportunities Meta Earnings Overview Q4 results: EPS $8.88 vs. $8.

Financial Education

Jan 30, 2026

•

3 min read

YouTube video ID: hRWB-Rc19n0

Source: YouTube video by Financial Education — Watch original video

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Meta Earnings Overview

Q4 results: EPS $8.88 vs. $8.23 estimate; revenue $59.89 bn vs. $58.59 bn (+$1.3 bn beat).
Guidance: FY23 revenue forecast $53.5‑$56.5 bn (midpoint $55 bn) vs. consensus $51.4 bn.
Growth drivers: 24% YoY revenue growth, 58.1 bn advertising revenue (97% of total), daily active users 3.58 bn in line with expectations.
Cost concerns: Operating expenses up 40% YoY, especially R&D (+40%) and G&A (+385%). Operating income grew only 6%.
Capex: $115‑$135 bn projected for the year, $15 bn above analyst expectations.
Investor view: Despite high spend, strong ad demand and rapid AI‑glasses adoption suggest continued revenue momentum; author holds shares and sees Meta as a better buy than Microsoft.

Microsoft Azure Growth

Azure growth: 38% constant‑currency growth, slightly below the hoped‑for 40%+.
Implication for competitors: Potential upside for Amazon AWS if Azure underperforms.
Overall performance: Revenue $81.2 bn (up 17% YoY), operating income $38.2 bn, net income $38 bn, EPS $5.16.
Valuation: Microsoft trades at ~27× forward P/E, higher than Meta’s ~22×; author still rates Microsoft a buy but prefers Meta.

Tesla Performance and Outlook

Q4 results: Revenue $24.9 bn (down from $25.7 bn YoY); gross profit up to $5 bn; operating income $1.4 bn (down); net income $0.84 bn (down from $2.1 bn); diluted EPS $0.24 (down from $0.60).
Product shift: End of Model S and Model X production signals reduced focus on high‑margin luxury EVs.
Robotics (Optimus): CEO’s hype likely overpromised; author expects real impact only in the 2030s.
Strategic risk: Potential SpaceX IPO (mid‑2026) could siphon investor capital away from Tesla.
Positioning: Author plans a modest add‑to in spring, viewing Tesla as a hedge rather than a core growth play.

Las Vegas Sands & Win Resorts

LVS results: Revenue $3.665 bn (up YoY); operating income fell to $77 m; interest expense rose; share buybacks criticized – author prefers debt reduction.
Win Resorts outlook: New Middle‑East resort under construction; early‑stage opportunity with high‑net‑worth clientele; current forward P/E < 20, suggesting cheap valuation.
Competitive context: Historical missed timing by Steve Wynn in Atlantic City and Macau gave LVS a size advantage; Win now aims to avoid that mistake.

Whirlpool’s Struggles

Q4 snapshot: Net sales down YoY; gross margin fell to $575 m; COGS up while sales down; SG&A up; one‑off gains mask underlying weakness.
Balance sheet: Cash $669 m, long‑term debt up to $5.5 bn.
Investment view: Stock near multi‑year lows; author waits for a deeper discount (≈$45) before considering entry.

Federal Reserve Policy Critique

Current rates: Fed funds 3.5‑3.75% despite CPI 2.7% (core 2.6%).
Author’s stance: Fed should cut 25 bps now and continue easing until rates align with true inflation (~2%).
Tariff impact: Fed Chair indicated tariffs are a one‑time pass‑through, yet rates remain high.
Takeaway: Monetary policy appears overly tight, adding pressure to equities.

Overall Market Takeaways

Meta remains the headline winner with strong ad revenue and AI‑glasses momentum, despite aggressive capex.
Microsoft is solid but faces Azure growth slowdown and AI competition.
Tesla shows mixed fundamentals; long‑term bets on robotics and SpaceX may reshape its valuation.
Hospitality (Win Resorts) offers a niche, high‑net‑worth play in the Middle East; LVS is a cash‑rich but possibly mis‑allocating capital.
Whirlpool is a distressed consumer‑appliance story needing a deeper price cut.
Fed policy may be a drag on equity momentum; investors should monitor upcoming rate decisions.

The author encourages viewers to like, subscribe, and consider joining a private investment community for deeper analysis.

Meta’s earnings beat and AI‑glasses growth make it the standout buy, while Microsoft’s Azure slowdown, Tesla’s operational headwinds, and a potentially over‑tight Fed suggest caution across the broader market.

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Full Transcript YouTube

You got to be flipping my flapjacks. If
you told this kid right here 17 years
ago making $8.75 an hour, if you told
him something would be possible, like
what just happened here 30 minutes ago,
we'd be like, "No way. No way that's
possible." Meta stock. It is the biggest
position in the public account. I'm up
$98,000
in the past 30 minutes on my Meta
position just in one portfolio. That
does not account for other portfolios.
If anybody out there owns a few meta
shares, congratulations to you.
Unbelievable. Right now, it was destiny.
You know why it was destiny? $888,000.
I was up going into these earnings. And
uh if you know anything about Chinese
culture, 38 is extremely good luck. And
I said, "Today, call me Chinese lefave."
Okay, I'm Chinese Lefave today. And it
ended up working in the end. No such
luck in regards to Mr. Softy. Microsoft
stock is down over 5% after hour. still
a very very weak stock overall. I posted
this on my X page that's always linked
in the description area if you ever want
to follow me on X. I posted this on X.
Tesla's ending production of the Model
X. I posted that just 3 minutes ago.
This is the end of an error. Elon Musk
just said this. One of the best autos
ever made in my opinion. I plan on
driving mine for years to go in the
future. By the way, Tesla reported
earnings very mixed bag as far as their
earnings go. We'll discuss it in today's
video. Las Vegas Sands LVS. Ouch. That
stock's down about 8% after hours. What
does this mean for Windtock? Is do I
view Windtock as a huge opportunity? I'm
assuming Windtock will be down quite a
bit tomorrow given if Las Vegas Sands
goes down a bunch. It usually pulls down
Win Resorts as well. Whirlpool stock,
one of the Buy America trades, is not
working. This stock is down after their
earnings just came out down almost 8%
after hours. Oh, by the way, did I
forget Jerome Pow came out and they made
a rate decision today, right? I mean,
just a busy busy action-packed day. We
have so much to get into today's video,
folks. I'm just going to need to get
straight into this. So, first we're
going to cover Meta. What's going on
there? My opinion, perspective, is an
opportunity, is it not? Is it a buy? Is
it a not? Mr. Softy, Microsoft, is it a
buy? Is it a not? What's going on there?
Tesla, is it a buy? Is it a short? Is it
a nothing? Right now, we'll talk about
Tesla in today's video. Las Vegas Sands,
what does that mean for Win Resorts?
What's my perspective there, right? Is
Win stock a huge opportunity or not?
Right now, we'll talk about that.
Whirlpool. Is this a generational buying
opportunity in Whirlpool or is it a
situation where you still don't want to
get involved with the stock? As of right
now, I own zero shares in it. Am I
interested in buying some here? Okay.
Then we'll talk about the Fed. What does
that mean for the market? My
perspective, did they screw up? Did they
do something good? It's just an
action-packed video. It's one thing and
one thing only I need from you. If you
have not already done it, if you could
please just smash that little like
button, that little thumbs up button.
That's all I need from you. That's all I
need. It's an action-packed day. I hope
you guys appreciate me covering all this
for you guys. I've been prepping this
video for hours and hours and hours, and
that's all I need from you. If you want
to be subscribed here to the channel,
certainly subscribe. It is free to do
so. And um I think we're up to 912,000
subscribers, something like that. Okay.
All righty. So, Meta, listen, it was not
necessarily all good news regarding
Meta, okay? But let's cover the great
news first.
Earnings per share 8.88. There's the
eights again.
The eights again. 8.88 versus 823 was
estimated for their earnings per share.
And as far as revenue goes, 59.89
billion versus 58.59
billion. Analysts had some pretty high
expectations regarding earnings per
share and revenue. And so the fact that
Meta still came in and beat both those
numbers was actually very, very
impressive. And pretty big beat, too. I
mean, revenue beat was a $1.3 billion
beat there. So that's that's pretty darn
impressive, right? I mean, how many
companies in the world even do $1.3
billion of revenue in a in a three-month
span? Never mind beat analysts estimates
by 1.3 billion in a 3-month span. Right?
Now, also great news. Meta said it
expects first quarter sales to be in a
range of $53.5 billion to 56.5 billion.
So we can call that a $55 billion uh
midpoint there, right? That's way ahead
of the analysts. Analysts were at 51.4
billion. So that guide is honestly why
people are really excited about Meta.
And the reason that stock is trading
higher is because of this guide. A $55
billion midpoint, right, versus 51.4. I
mean, that's just a huge difference
there, right? In a very positive way
from Meta. So, the business is just
growing much more quickly than really
anybody had anticipated. Finance Chief
Susan Lee said that the forecast was
really underpinned by strong demand that
we saw through the end of Q4 and
continuing into the start of 2026. The
company said fourth quarter sales rose
24% year-over-year. That's very
impressive for a company this size.
Where are you getting these sort of
growth rates in MAG 7? There one company
you're getting these sorts of growth
rates and it's Nvidia and that's it,
right? The company said its advertising
business generated 58.1 billion in the
period. Advertising made up 97% of the
company's overall revenue. Does not come
as a surprise. Meta said fourth quarter
daily active people. This is like
somebody using at least one of their
apps in a given day. 3.58 billion which
is in line with Wall Street estimates.
Right now it's not all just like blue
skies for Meta here. Right? I mean if
this was a blue sky report the stock
probably would have been up 17 to 20%
after hours instead of you know 7 to
10%. Right? Here's the issue. Revenue,
great, 20 up 24%. But
but cost and expenses rose 40%
year-over-year. That's not good. You
never want to see your cost and expenses
rising at a faster clip than your
revenue.
And especially not 1,600 basis points
faster. That's a substantial difference
there. So what ended up happening to
their income from operations? It only
grew 6% in the quarter. Not ideal for a
company growing revenues 24% like you
expect your income from operations to be
up bare minimum 24%. But higher. Usually
if your revenue is up 24 24% you're
going to expect your income from
operations to be up 30 or 40 or maybe
even 50%. To be up 6%.
No bueno. No bueno. Net income grows 9%.
So that's good that net income was up
faster than income from operations. Then
diluted EPS was up 11% higher than net
income. My guess is they bought back a
lot of shares in the quarter. Right now
also we have a little bit of an issue
here. Okay, check this out.
Capex, the company is expecting to spend
115 to 135
billion
or for the year in regards to capex. 110
billion was expected. That was a huge
number, right? And so basically the
midpoint here is $125 billion for capex.
I mean that's $15 billion more than what
analysts were expecting and we were
expecting in general right that's a huge
huge number huge number huge number and
so they talk about you know Zuckerberg
talks about to support our meta super
intelligence labs efforts in core
business okay so overall as far far as
our income statement when it's actually
only a C-grade income statement here
from meta grade revenue growth 24% cost
of revenue up 23% so it rose almost as
fast as a percent. Now, I don't usually
worry about that too much. Even if it
was 24%, you know why? Yes. Let's do
some math. Just think about it
logically. Why don't I care that much if
cost of revenue was up 24% and revenue
was up 24%.
Anybody got it? Here's why. Revenue is a
way bigger number. So, if these both
were rising 24% 24%, guess what? It this
number is so much bigger. It dwarfs this
number. So if the percentage is the
same, like it's literally nothing,
right? Like I'll take 24% revenue growth
with 24% cost of revenue growth any day
of the week. Like of course, like this
number is just so much bigger. Like the
the whole amount is substantially
bigger, right? No, R&D, research, and
development. This is where we have big
problems. This grew 40%. 40%
year-over-year.
That's way outstripping revenue, right?
Marketing and sales was not an issue.
That was only up 5% year-over-year. So,
that's great. That's the type of stuff
you want to see. Revenue up 24%, market
and sales only up 5%. Let's go, baby.
All day. And then we had the big dog
problem. GNA, General Administrative.
Look at this. Went from $761
million in this quarter to almost $3.7
billion in the quarter. That's up 385%.
Oh, that hurts my feelings. Total costs
and expenses up 40% year-over-year. So
that's why income from operations was
only up 5%. Interest in other income was
up 223%. Uh you know which is a very
impressive number year-over-year. Net
income up 9%, dilute EPS up 11%. And
once again, um, if we look at diluted
shares, a little bit down on a
year-over-year basis here, right now, me
personally, as somebody that's been a
shareholder of this company for years,
years and years and years, right? I've
been buying this stock in the public
account since like 2000. The first
shares I ever bought in the public
account
of Meta, if I recall, was 2018.
[clears throat] Okay.
So, my perspective on this is I don't
understand why the company needs to
spend this much flipping flapjacking
money. It's insane. I don't get it. I
literally don't get it. I understand why
they want to spend. I understand they
need to spend, right? We're growing
revenue is nice. We should continue to.
We're investing in AI. But why they need
to spend this insane?
I don't get it, man. I just don't get
it. However, we got to remember
something very important here, ladies
and gentlemen. We're dealing with
Zuckerberg. And Zuckerberg has a great
track record. He has an unbelievably
great track record. Now, you might say,
"Well, what about the metaverse? That
looks like it was a failure." Okay, you
you name that as a failure. I'll name 10
of the biggest successes in business
history.
Like, are you kidding me? Uh Facebook,
uh Instagram, uh WhatsApp. like the
world runs on those three platforms. Are
we flipping our flapjacks or what are we
doing here? Right? And so, you know,
threads like the messenger platform,
like it's incredible what he's been able
to build and what his company's been
able to build over the years, right? And
then you can take so many smaller
segments off of all those products and
how big of successes those were. So,
it's like, well, yeah, the metaverse
hasn't really worked out. Like, Oculus
hasn't become the big thing and we all
don't aren't walking around with
headsets on our heads, right? But guess
what? Something going on here, ladies
and gentlemen. Mark Zuckerberg just said
that Meta's sales of AI glasses have
more than tripled tripled in the last
year. The AI glasses are taking off,
ladies and gentlemen, and continue to he
might he might just have he might you
know, wearables has always been a thing
that people are like, you know, has kind
of gotten pushed off. The only company I
can say has really been successful in
wearables is Apple with the Apple Watch,
right? But outside of that, like we were
supposed to have this big wearables
revolution. This was the thing that was
talked about 10 years ago when Fitbit
was taking off like crazy and like we're
all going to wear things on us that are
all connected to the internet and all
these sorts of things, right? And it
never really came to fruition other than
Apple Watch, right? Until now.
Zuckerberg is clearly winning when it
comes to their their AI platform
glasses, right? And I have a pair as
well, right? And I posted this way back
in early 2024. I said only Ray-B band
store in Vegas is at Caesar's Palace. Uh
the lady told me cuz I went down there.
She said demand was crazy for metag
glasses. She said people call the store
from other states to see if they can get
it cuz their state doesn't have them,
right? Um it was incredible and that was
way back once again almost 2 years ago
now at this point in time. I posted that
on my axe page, right? And so these are
just booming. So keep that in mind as
well. All that money might not have been
just wasted. I also have went to this
store recently. So, they opened up a
store in the nice, beautiful wind mall
as well, the Metal Lab. 4.6 stars, 75
reviews so far. So, good to see that as
well. It's definitely serious in terms
of their ambitions there, right? No,
let's talk about that guidance. I think
that's important, right? Cuz they're
guiding 53.5 to 56.5 billion. Listen,
what does Meta come in and do? They come
in and smash numbers, right? They just
did it this last quarter. Analyst had
pretty high expectations. And where'
they beat revenue by? $1.3 billion or
whatever. So companies are in that
range, don't be surprised if they come
in with like a $57 billion number or
something even maybe even bigger than
that, right? Like I would not be shocked
at all if they come in and beat the
highest end of that range. That's what
Meta does, man. They do it. They get it
done, right? No. As far as me
personally, I'm going to hold my shares
tight. I don't have any, you know,
ambition to sell these shares. Like, why
why would I sell them? I don't like how
much Zuckerberg's spending. I don't. But
with that being said, I'll give him the
benefit of the doubt. The man's done an
unbelievable job. He's got the second
fastest Mag 7 company in terms of
growth. And so, I'll give him the
benefit of the doubt that he's spending
like a drunken sailor and it's all going
to be for something and a lot, right?
And to be honest, we're already starting
to see the early signs of it's working.
You don't just start having your revenue
go up 20 plus% magically.
Clearly their AI is working when it
comes to their products in terms of
getting more and more people to use
them, more and more people to use them
more often. Better and better results
for the advertisers like this. This is
not just you don't just accidentally do
this. Okay? And so I don't love that
he's spending that much, but at the end
of the day, shoot, if we can keep
growing revenue 20 and 30% clips, I
guess he can be fine spending $125
billion or whatever he does capex-wise.
The moral of the story though is 27 28
like he can't have big ramps again like
though it's got to be very small
increases if any increases there right
so that covers meta Mr. Softy up here
then we'll get into Tesla LVS which is
around win worldpool other opportunities
and the Federal Reserve okay Mr. softy.
Keep this in mind, ladies and gentlemen.
Very important.
This stock was right around here 2 years
ago. So when we talk about this stock
kind of in that 440 to 450 range, pull
up the stock about 2 years ago and
you're going to find it right around
that range as well. Right? So stocks
kind of been dead money for the last
couple years now at this point in time.
Now when it comes to Microsoft,
everybody looks at one number like
there's an overwhelmingly important
number when it comes to Microsoft and it
is the Azure business. Okay, Azure. That
is everything for this company and
everybody looks to that number. They
almost don't even care what everything
else is. It's all about Azure. And so
38% growth there on a constant currency
basis. A lot of people were really
hoping for 40% plus. So 38% is a great
number, but it was actually a little bit
of a let down for what people are
expecting. Now this could play an
important part for Amazon stock. Listen,
there's a potential
that since Azure, you know, didn't have
that great of a quarter compared to
what, you know, some people were
expecting, that 40% plus number, it
could be that Amazon AWS had better
growth than people anticipate, right?
One company does a little worse, one
company does a little better. And we
have seen very recently AWS growth
start to reach higher levels than what
people were anticipating, right? So keep
this in mind for when Amazon goes in
ahead and reports I think if I recall
Amazon's reporting this upcoming you
know like next week essentially. So AWS
don't be surprised I'm going to say it
right now once again do not be surprised
if AWS growth beats analysts estimates
now that Azure has missed analysts
estimates. Okay. Now with that being
said let's be quite honest. This is an
A+ income statement. If you want me to
show you an A+ I'm going to show you
this right here. Okay. Product revenue
is only up slightly, but that's not
really what's important for the company.
Services and others, what's really
important, six almost $65 billion from
$53 billion. Total revenue 81.2 billion
from 69.6 billion. As far as cost of
revenue, they kept they actually that
was down year-over-year, right? Services
and other was up, but not nearly up as
much as a whole number as you know how
much the overall revenue was up, right?
Total cost of revenue went to about
right around 26 billion from 21.7
billion. So, they kept that in check.
Gross margin dollar went to over 55ab
billion dollars from 47.8 billion. R&D
up, but they kept that in check. Sales
and marketing up, but they kept that in
check. That's like hardly even an
increase year-over-year. GNA, oh my
gosh, only $100 million up
year-over-year. There's nothing when
your revenue is up like $12 billion
year-over-year, right? So operating
income went to $38.2
billion from $31.6 billion.
Smoking. other income almost $10 billion
of other income versus 2.2 billion in
the same or a negative 2.2 billion in
the same quarter last year. My guess is
part of that might be on open AI higher
valuation and that being reflected
there. Um I would have to dig deeper to
find out that that's just like my little
artificial intelligence brain like
putting pieces together. I could be
wrong on that. Just keep that in mind.
But that's just my guess is OpenAI
probably got a bigger valuation. So it
had to be reflected under other income.
Uh income before income tax is 48.2
billion from $29.3 billion. Net income
38 billion from 24 billion. Dude EPS 516
from 323. That's an A+ income statement,
ladies and gentlemen. Phenomenal. Is
Microsoft stock a buy?
Yes, absolutely it's a buy. 100%.
Microsoft stock is a buy. Okay.
But listen, okay, I have a better buy
for you. You know what it is? Meta. Meta
is a better buy than Microsoft. Here's
why. Ford P 22 on Meta. Um, keep in
mind,
Meta is probably going to beat numbers,
so that Ford P could even be under 20
right now, right? But of course, stocks
going to go up a bunch tomorrow, so
we'll see. Microsoft's at a 27 Ford P.
Okay, but here's the deal.
If you think about it right, there's a
huge overhang that's going on in regards
to Microsoft stock right now and it's
around um revenue performance
obligations in the future and open AAI.
There's a lot of questions about Open AI
and if Open AI is really going to be the
winner winner chicken dinner, right?
They're facing a lot of competition from
Google with Gemini. Now, at this point
in time, they're facing competition from
either even companies like um what XAI
is doing with Grock, but we'll see if
you know they're successful or not. They
might not be, you know, but the moral of
the story is there's more and more LLM
competition than ever. And
Chad GPT got out in front of everybody,
but now it seems like people are right
on their heels, right? And as far as the
benchmarks and everything we're seeing,
like it's very impressive what these
other guys are putting up. I don't know
if that's a technical term for what they
call how they um you know actually like
measure these these different LLMs, but
what we're seeing is very impressive out
of other companies as well. Anthropics
keeping the pedal to the floor, right?
So, I mean, we'll see. We'll see.
The other thing is there's a lot more
scariness that Microsoft's business is
going to be disrupted by these AI
companies. Their core business, right,
of like the Excel product and all, you
know, that whole suite of products is
going to be disrupted by potentially
claude and anthropic and kind of what's
going on there. You know, that's kind of
I don't know like maybe it is, maybe it
isn't. I don't know. I don't have a big
opinion on that. But what I will say,
what I will say is it's a serious
question, right? Are they going to be
disrupted or not? With Meta, you don't
have to deal with any of this. You don't
have to deal with, well, if OpenAI is
not everything they cracked up to me and
they're not going to spend with
Microsoft like crazy, the Azure business
is going to, you know, have their
revenue go down a bunch, right? And that
revenue growth rate is going to collapse
in terms of what's been going up there,
right? You don't have to worry about
with that with Meta. Additionally, you
don't have to worry about anybody
disrupting them. the years of oh meta is
being disrupted that was years ago.
there was the worries about Tik Tok and
oh you know so many people are using Tik
Tok it's disrupting meta blah blah blah
right those are all day you know things
of the past now at this point in time so
with Microsoft you have serious worries
on two fronts meta you don't you just
don't have those worries that you do
with Microsoft right and so you get a
cheaper valuation you get less worries
better growth too keep in mind's revenue
growth is much quicker than than
Microsoft right so
overall Meta's better buy it's It's as
simple as that, right? All righty. So,
next up here, we're going to get into
Tesla. But before we do that, let me let
you guys know the pinned comment down
there today is if you're looking to
apply, join my private stock group,
private wealth group, get access to
thousandx.com, my advanced software, all
that good stuff. This group is
specifically for people that have over
$100,000 net worth. That does not mean
you need to have $100,000 plus in
stocks, just $100,000 plus net worth. If
you are under $100,000 plus net worth,
you can still apply to join my private
stock group. you might not be a good fit
for us in there. It might not work out
and that's fine. But if you have over
100K and you're watching us right now,
you definitely want to apply. Join us in
there. Let's get up to a much higher
level than where you're at. Let's get
more serious about investing. Let's quit
gambling money. Let's be confident
making our decisions. That's one of the
biggest things being in the private
group. I hear over and over time and
time again, I actually feel confident
when I go to make decisions rather than
feeling like gambling money. And by
doing that, you got to be able to run
valuations on companies. You got to
understand how to use an advanced
software like we have, right? You got to
understand balance sheets, income
statements, all this sort of stuff. And
then you can feel like you're actually
like doing something out there instead
of just throwing money around. Uh, very
exciting. We had just in the past couple
weeks here, we had two people hit seven
figures plus in their portfolio and we
had 12 people hit six figures plus in
their portfolio in the private group.
Also, sometimes I just, you know, we'll
have random stuff that I give away to
private group members. And so, um, we
had two private group members that are
going to be getting red thousandx hats.
Pretty darn cool. Um, additionally, once
you join us in there, we'll send you
your steel membership cards to your
house. All righty. That will be the
pinned comment down there. Tesla, my
Tesla, can we say
Dminus? Uh, not very good as far as uh
the income statement here for Tesla. So,
$24.9 billion of revenue they did versus
25.7 in the same quarter last year.
Gross profit did go up very nicely for
the company to $5 billion from $4.1
billion. But income from operations went
down to $1.4 billion from almost $1.6
billion in the same quarter last year.
Net income went from $2.1 billion plus
to $840 million plus. Huge decrease
obviously year-over-year. Diluted EPS
went from 60 cents in the positive to
only 24 cents in the positive. So
overall it's a Dminus income statement
for Tesla my Tesla. Now, additionally,
with the ending of the Model S and the
Model X production that Elon Musk was
talking about, this is interesting
because that basically means Tesla's
just doesn't care about the high-end
market anymore, right? Those vehicles
have already always done a good job of
attracting higherend buyers, right? I
had a Model S Plaid for many years. I
had a Model X and then I got the Model X
Plaid recently. Uh, love those vehicles
and they attract a higherend buyer like
myself that's looking for an EV, right?
And these vehicles from my understanding
were always very good margins, right?
They're not cheap vehicles. Like look at
the Model X price here. $123,000 I spent
on that. But [sighs]
you know, it is what it is. Um
they decided to end it. Um and so
winding down. I don't know. It could be
a sales tactic by Elon. Do keep that in
mind. Like maybe they don't actually end
it. It's just like, you know, trying to
spur up sales or something. But I don't
know, man. little little questionable in
regards to that. Now, as far as
optimists, Tesla's talking about
Optimist ready to rock and roll, right?
Uh people are going to have to learn a
hard lesson in regards to this Optimus
situation, right? Uh they're they're
basically being led on in my personal
opinion. They're being led on just like
back in the day, we were as Tesla
shareholders of full self-driving,
right? Full self-driving was always
right around the corner and it never
was. Right? Finally, the robo taxis are
here and like finally Tesla's starting
to launch them in different cities and
we're in 2026 and this was something
that you know we've been talking about
for 5 6 7 years about oh it's it's
almost here it's almost here it's almost
here it's almost here and so now there's
going to be that same exact game played
with these Optimus robots about oh
they're right around the corner we're
about to go into production right and
the reality around this in my personal
opinion is this is not going to be
meaningful component of Tesla's business
for anything in the 2020s 2030s I think
possible. And do I think Tesla will be
successful with robots long term? I do.
But it's not anytime soon. It's not this
year. It's not next year. Okay? And so
people will learn the same lesson they
learned with FSD. Okay? It's going to
come, but it's not anytime soon. Okay?
Now, as far as me personally with kind
of my hedge against Tesla stock, I'm
going to likely add to that in the
spring. And the reason being is
nothing's going on with Tesla's business
model that has me really like, you know,
concerned from a standpoint of like, oh
my gosh, it's going to like go up so
much. Additionally, the SpaceX IPO could
be in sometime in mid 2026, right? And
so
that's going to suck all the air out of
Tesla stock. You got to understand a lot
of the money in Tesla stock is in it
just because it's like, you know, it's
like this big think of like we're going
to have robots, we're going to have, you
know, self-driving cars and all these
exciting things. Once SpaceX is a public
company, it takes all the air out of
Tesla. Tesla seems lame then. It's like
self-driving cars, who cares? Like,
dude, we're talking about going outer
space. We're talking about mining on
other planets. We're talking about
satellites all over the place to do this
and do that. like
makes like a self-driving car look like
boring, right? And so SpaceX is going to
take all the oxygen out of that. You're
going to see a lot of money move out of
Tesla stock in my opinion and move into
SpaceX for that IPO and over the coming
time. And so I think Tesla stock will go
through a very very very difficult time
um after that. And so my thing is I'll
likely end up adding to my hedge overall
in the springtime. So that covers that.
Okay, next up here, LVS. What does this
mean for when is this a big opportunity?
Then we get a whirlpool, the Fed, all
that good stuff. Well, Las Vegas Sands
here. Stocks down big about like 8%
after hours. I was looking at the
earnings. It was a B-grade. It was
pretty good. Uh, as far as every
component of their business was up
year-over-year. Net revenues went to 3
about, you know, 36 $65 billion from
$2.9 billion. Resort operations was up
quite a bit for a company, but they kept
that pretty in check. They did have this
problem here. Loss on disposable or
impairment of assets. I was $164 million
hit they took in this quarter versus
only $9 million in the same quarter last
year. So that made their expenses, you
know, much higher than probably it
should have been or could have been if
it wasn't for that more like one-off
situation. Uh overall operating income
went to $77 million from $590. So good.
Operating income was down for the
company year-over-year down to 38
million from $57 million. And then
interest expense was up year-over-year.
So that's a double bad there. If your
interest income's down and your interest
expense is up, no bueno. No bueno. Okay.
$191 million in interest expense in the
quarter from 180 million, right? Net
income $448 million from 392. So that's
a nice increase year-over-year, but a
lot of that comes from this income tax
expense. So do keep that in mind there.
Or not from the income tax expense. So
income before income tax is 551 versus
561. No, that's fair. That's fair. uh
dilute DPS 58 cents versus4 cents. My
main concern with LVS here is right
here, right? They're using a ton of
money to buy back shares. I think they
should be using money to pay down debt.
I think that would be a much better use
of their capital. You don't know how
long interest rates are going to stay
high. Why not pay down some of that
debt, right? Get yourself in a cleaner
balance sheet situation than spending a
ton of money on on share buybacks right
now, right? Like, yeah, that's my
opinion on that, right? But I don't own
LV has to talk. So, oh well, who cares
if they don't make decisions that I
agree with? I really don't care in right
now. Is there anything in those numbers
that makes me scared about wind's
numbers? Absolutely not. Nothing. Now,
as far as wind goes, they're building
their property in the Middle East right
now. Uh we have some updated pictures of
how this property is looking. This was
as of January 11th. Baby's looking good,
is it not? Oh, yeah. Oh, yeah. It's
looking very good. So it should be ready
next year. Should be ready. It's going
to be very exciting. Right. This picture
is from January 22nd. Here you can see
so much construction around it as well.
Right now this is a very exciting
opportunity for win. And the reason
being is you want to be early to a new
market. Okay. This Middle East
opportunity like this is brand new
opportunity and like winds got it like
they got the opportunity for the next
several years and basically exclusively
as well. right now. Steve Wyn, the man
behind Win Resorts, he's unbelievable in
regards to his design of properties, his
understanding of luxury, right? And that
DNA is really embedded into Wind's
management team nowadays. Maybe someday
it leaves the the team, but it's not
right now. I can tell you the properties
are still run on such a high level. So
Steve Win, he was incredible in regards
to creating these resorts and these
environments that would attract the
highest end people that you'd want
gambling in your casino, right? Big
money, big money. And that was his
specialty. But if there was one thing
that Steve Win missed huge on over his
career, it was being first or very early
into a new city or a new, you know,
country or things like that, right? And
so a good example is Atlantic City. He
was not early in Atlantic City. He was
still successful in Atlantic City, but
he was actually late. When Atlantic City
first opened, he, you know, spoke to one
of the gentlemen that was running one of
the resorts down there at that
particular time. And he said like, "You
got to get out here. Like we're making
so much money, we got it piled up in
crates. You got to get out here." And
it's a, you know, old story Steve Win
told a long time ago, right? And then
Steve's like, "Okay." And so they found
some land and then they built a property
on it. But they were already several
years late in regards to Atlantic City
opportunity. Then he he was late in
Macau as well. Sheldon add really took
the you know he really took took that
opportunity and made the most of it. And
that's why Las Vegas Sands today is a
way bigger company than Wind Resorts.
like Wind Resorts could be the much
bigger company, but it's not because Las
Vegas Sands really entered Macau first,
really understood that opportunity,
started making bank from the Macau
business, right? And then expanded in
Sheldon add really saw that opportunity
before Steve Wyn did. And Sheldon add
you know, started to show Steve Win
around Macau. And then next thing you
know, uh, Win ended up opening a
property in Macau and then a second
property in Macau and then they opened
up the Wind Palace, right? Singapore,
another great example. Uh Steve Win
didn't go to Singapore. Uh Las Vegas
Sands won that opportunity with the
Marita B Sands property and that
property has made Las Vegas Sands a
fortune over the years. Unbelievably
successful property for Las Vegas Sands
and that's why LVS became a way bigger
company than Win Resorts. But I say all
that to say basically winds actually
learn from those failures, right? Steve
Win's not involved with the company
anymore. And they're taking, you know,
the understanding of making a great
property. They're taking that to the
Middle East, but they got the
opportunity first before anybody else.
And we know this is a big opportunity in
the Middle East, and we know that
property is going to be insanely
successful. We It's only a question of
how successful it is. That's the only
question. We know it's going to be
successful. We know there's a huge
appetite for that. And keep in mind,
it's not just going to be like big money
from the Middle East because there's
going to be plenty of that, right?
There's gonna be there's so much big big
money, big dog money in the Middle East.
It's incredible, right? Incredible. But
also keep in mind the people that are
going to be going that property are
super high net worth individuals from
Europe as well and from even other parts
of Asia as well that maybe don't want to
go to Macau and maybe want to go to a
property like that. And you'll get some
rich Americans that will go out there
that want to go to the Middle East. I'll
I'll go I'm going to visit the property
probably in either 27 or 28. Like you'll
get those people as well, right? So you
get a little bit of everybody. So really
exciting opportunity for Wind Resorts.
And keep in mind the beautiful thing
about this is Wind's trading at a Ford P
under 20 right now. And P is not always
the best way to judge these resort
companies because they take massive
depreciation amortization.
Huge numbers each year, right? And so
that always hurts their earnings. But
these these properties don't really
depreciate the way people think they
depreciate. If anything, I think they're
appreciating over time. Like if
anything, I think the win in Encore
today is worth more than when they built
it and they depreciate those over time.
It's just, you know, so the moral of the
story is a Ford P under 20 is extremely
cheap for win. But this is before we
even get to the Middle East opportunity.
Remember, none of the Middle East
numbers even in this forward P. So, you
know, we once again, we don't know how
successful that property is going to be,
but we know it's going to be successful.
It's just a question of how much. Right?
Now, let me cover this subject in
regards to wind resorts because this
gets talked about sometime, right? They
talk about prediction markets and how
those have been taken off. They talk
about online gaming. They talk about
regional gaming, right? I mean, if you
live in America and you're watching this
right now, you probably live within an
hour drive of a casino, right? So,
listen, all that type of stuff, this,
you got to understand, wins customer
base. This is not those type of people,
okay? The person that's gambling 20
bucks on FanDuel, DraftKings, whatever.
Okay,
Khi,
that's not W's customer base. Okay, they
might be stealing money from Caesar's
Palace, right? From B, somebody like
that. But W's customer base, listen,
these people are not going to some
little regional casino to go gamble.
They want to come to the win and the
encore. They want to come to these
properties. You know why?
Because they got a lot of money. And
when you got a lot of money, you want to
be surrounded with beautiful women. Go
to the winning encore. More beautiful
women in those properties than you ever
seen in your whole life. I went we went
to Miami. My wife and I went to Miami
and we you know always hear all this
stuff about oh Miami women so beautiful
this and that. like dude once you've
been in Vegas like nah no you already
seen the best the best quality out there
right you want to be in the with playing
with like the you know other high net
worth players that are very successful
in business and very successful in
general right meeting interesting people
eating at the best best restaurants it's
about the whole experience going to the
best of the best clubs like it's the
whole experience it's not just like I'm
going to place $20 for the Buffalo Bills
to beat the Kansas City Chiefs today.
No. No. That's a whole different That's
a whole different customer segment. GH.
That's not W's customer segment. GH. No.
W's customer segment. Those people are
coming with a half million to play with
on a weekend. Those people are coming
with $6 million to play with on a
weekend. Coming with 50 bucks in their
pocket. Come on, man. And so, you got to
understand there's a huge difference
between W's customer base, the big dog
money. like we got millionaires,
multi-millionaires, billionaires. That's
W's customer base. It's a whole
different level of clientele than, you
know, um what these other properties are
doing. So, that stuff, it doesn't even
affect Win in any sort of negative way.
And that stuff's not new, right? Doesn't
hurt win. Like I said, it could hurt
other players cuz yeah, some guy instead
of, you know, coming to Vegas, he
spends, you know, the 300 bucks he was
going to spend in Vegas, he ended up
spending it on, you know, Kouchi or, you
know, whatever the other platforms are
named, right? And so, oh gosh, he lost
his money. Now he can't come to Vegas.
Okay, that's going to hit one of the
super low-end properties. That dude
wasn't going to stay at the win. Okay.
No, no, no. I mean, one meal at a
restaurant at win and he would have blew
through his whole budget. The table
minimums at win are like 25 and that's
like lowest. But I'll go there on a busy
night. Table minimums are like $50.
Dude, come with your 300 bucks. It's
going to last you like 10 minutes. Come
on, man. [laughter]
Next up here, Whirlpool stock. And then
we'll talk Federal Reserve. Okay, so
Whirlpool's down big after hours down
over 8%. Looking at the numbers for
Whirlpool, it doesn't look good. This
was a C minus income statement here. Net
sales was down for the company
year-over-year. Gross margin was down
for the company year-over-year to 575
mil from 671, right? I mean, cost of
cost of goods sold was up year-over-year
when net sales was down. Like, that's
just devastating. Uh, selling general
administrative was also up. Your revenue
is down. Your SGNA is up. Your cost of
product sold is up. Then they had
restructuring cost of $46 million.
Impairment of goodwill and other
intangibles. So, they only took a $106
million hit from 381. So, their
operating profit looked a lot better
year-over-year, right? Um, they also had
a gain on a sale of disposal disposal of
business of $250 million. So, they made
their operating profit look like, oh,
it's good. But if guys, you know, factor
a lot of this in and it's not actually
good. But operating profit went to 243
positive versus negative 136, right?
Dude DPS 191 positive versus 710
negative. It's still not good, right?
It's a C minus grade. Um there's a lot
of one-offs that kind of help things
here. Okay. Now, as far as their balance
sheet goes, it's also gotten much worse
over the past year. They're down to $669
million in cash and cash equivalents,
and they had now have long-term debt of
5.5 billion from 4.7 billion. So, it got
worse. It's not good. It's not good.
So, Whirlpool, I mean, it's a stock I'm
interested in, right? The stock's at
multi-year lows or right around
multi-year lows, but gosh, I think I got
to see more damage in it to get involved
in this one. Like, the riskrewards got
to be even crazier.
And the housing market still isn't
moving. It's still frozen. Mortgage
rates still haven't come down enough. We
got to get that 30-year to be
consistently in the fives. If we can do
that, ladies and gentlemen, then we
could talk about the housing market
starts to unfreeze. Boom, we start
rolling. But man, if that that if that
30-year, excuse me, if a 30-year
mortgage still stays in the sixes,
that's just a psychological number
that's just people can't wrap their
heads around. Fives, they can get it. We
go to fours, that's then the housing
market's going to be red hot. But you
keep in these sixes, gh, it's tough.
It's really, really tough. And so,
I need a better riskreward profile,
which means I need the stock a lot lower
from here. I might need the stock to go
45 to get involved with this one. I need
to be so overwhelmingly low, right? And
keep in mind, this used to be a stock
that was several hundred that it makes
me say I got to get in. It's really the
only American appliance maker out there.
So, I do think it's in the best interest
for the United States to make sure
Whirlpool succeeds, but gosh, man, it's
an ugly situation. The income statement
doesn't look good. The balance sheet
looks bad. GH sad.
We'll see. We'll see what happens in
regards to that. Okay. Next up here, the
Federal Reserve in the market and all
that good stuff. Okay, so I posted this
on my X page. Once again, if you want to
follow me on X, I post quite a few
things on there Monday through Friday at
least. Uh, and that will be linked in
the description area of this video if
you use X. I said the Fed should have
cut 25 basis points today.
100% they should have. Why do I say
something like that? So, I don't agree
with the Federal Reserve. Here's why.
I'll lay it out for you. CPI is at 2.7%.
Okay, this was as of December. So this
is backwards looking data. CPI at 2.7.
Core inflation, so taking out energy and
food is at 2.6%. All right. Truth
inflation has us at 1.1% inflation right
now. Okay. So keep in mind if you're
looking at true inflation, you're in the
ones right now. If you're looking at the
government data, which is once again
backwards looking and questionable,
you're in the twos right now. Okay.
Where's the So, seeing that, you would
assume the Fed funds rate would be
probably in the twos right now. That's
where it should be, right? Are we there?
No. We're at a Fed funds rate right now
of 3.5 to 3.75. What are we doing? What
are we doing? We're way too high right
now. Way too high. If the goal is to,
you know, keep inflation at bay, you
don't need to have it here. like the
you're so you're you're 100 basis points
ahead of where CPI is even on the
government data. And if you look at true
inflation, which I actually trust more,
you're like 200 basis points plus ahead
of where you should be right now, right?
So this is why I'm like they should have
easily cut 25 more basis points today.
Cut another 25 next meeting. Keep
cutting, keep cutting until you get into
the twos, which is where inflation's at.
If if CPI went to the threes, okay, then
we should be in the threes. But we're
not we're not even remotely close,
right? Not even remotely close.
So now you might say, well the tariffs,
the tariffs are going to cause a lot of
inflation, those sorts of things. Jerome
Pow today, I I listen to his whole
little press conference. He does, right?
He even said in the press conference
that that he expects tariffs to
basically be a one-time pass through.
One time pass through. Not like it's
going to be something that keeps So
basically that's a Federal Reserve
admitting Jerome Pow admitting that the
tariffs are not going to be a longer
term issue to inflation. It's a one-time
pass through. I know. He so wanted to
say transitory. He so wanted to say it.
He didn't say it. He called it a
one-time pass. I know he wanted to say
it so deep down, but he's like, "Oh, I
can't say that word anymore. I can't say
transitory. They they killed me for that
a few years ago. I can't say it
anymore." Right? But,
you know, I just think the Federal
Reserve silly. That's the way I'll say
it. Like, I just think they're silly.
They're they're scared to make moves
for what? If you got a CPI in the threes
right now, I get it. I get it. But you
even said tariffs are going to be a
one-time pass through.
So even if tariffs are raising CPI right
now, you you admit it that it's only a
one. It's just a one-off thing. So why
are we keeping a Fed funds rate 3.5 3.75
right now? Come on, man. Come on. Now,
with that being said, I don't agree with
the Federal Reserve and what they're
doing. Um I don't agree with sometimes
what presidents are doing and other
individuals are doing, politicians are
doing. Sometimes my CEOs are doing. But
at the end of the day, you got to stay
focused on the long term in this game.
Don't get caught up in all the
short-term stuff. Make short-term
decisions. Focus on the long-term. Play
the game. Build, build, build, grow,
grow, grow. Okay? I appreciate y'all for
joining me. Once again, if you have over
$100,000 net worth and you're looking to
apply to join private stock group, that
will be the pinned comment down there
there today. You can fill out a form,
see if we can get you in there, see if
you're a good fit for it. If you have
under $100,000 net worth, you can still
apply. It just might not be a good fit
for you. Once you join us in there, we
will send you steel membership cards.
This is the private group card we're
going to send to you.
Sounds so nice. We got your ThousandX
card right here. And for the individuals
that join us on a lifetime basis, we
have the black card. I appreciate y'all.
Much love and have a great