let's ask doug clinton of deepwater asset management, welcome, dog. good to see you on this friday. >> likewise, scott, happy friday. >> you too. i've run out of superlatives to describe what's happening. some who are positive investing use the word insane. for some of these mega cap games. what kind of words would you? use how do you feel about what you're witnessing? >> when a trillion-dollar market cap is up50% in a month, i think that probably qualifies as insane. we are big-time tech investors, we have a lot of love for the big seven. as rational people to, we look at some of the moves we've seen over the past month, the past eight weeks. at some, point these trillion dollar companies can't keep adding a couple hundred million dollars to their market cap every single month. my view is, at some point, we will get a break. we're due for a breather, maybe we're due for a little bit of a pullback. i don't know if that happens in a week. or longer. obviously, the market can be insane it's the word of the moment here for longer than we think. but longe

joining us to share his text playbook, doug clinton, of deepwater asset management. welcome back. you think immediate proved to us this week? >> i think approved the a.i. market that we are in right now is not over. there is a lot of questions about the valuation -- the the valuation seem to change at least how quickly those talks have moved. it looks like immediate stop showed us in a lot of the commentary is it still feels like we are pretty early in the a.i. bull market. what we think is a bull market now to what will inevitably be a bubble. i think it will take a few years. i think it kind of gave us a little bit of an all clear in terms of continuing to be excited about that a.i. theme. >> you agree with adam parker, for example, on the show, making the argument that we are not even close to the end. in fact, we are barely past the beginning of this whole gloom and what it is going to mean and, at such, you need to remain very heavily invested in these large -- >> i would agree with that, depending on what analogy want to use, depending on 1996 of the 2000 room, if you want t

doug clinton from deepwater put a great post out over the weekend is google dead?tors and we're asking that question. >> yeah. >> the concern is rising. they need to do something and push these models in the next three to six months. >> the concern is rising, but you raise the point that investors' dill emma, can you really disrupt your existing franchise one that is that dominant or fall by the wayside because you moved too slowly? >> so we think that they'll be able to bridge that trigs from 10 blue links to a conversation which search will evolve to. it's important to keep in mind who is in the conversation. specifically at this very minute right now this conversation is people who are well aware of what's going on with the different opportunities to find information. most of the world has heard about this, but isn't tuned in to it. that is the piece that google needs to manage to is that basically making that transition. they don't want to push -- the innovators dilemma, push it faster than they're doing now, but if they just turn it off, turn ten blue links of

thisinto just a whole different atmosphere, and this is -- this theory comes from deepwater's doug clinton llama is just taking a step back, an open source model. the other foundation models, claude and chatgpt and gemini, they're all closed. llama has 30 million downloads. if they monetize this, they will likely announce some sort of a cloud infrastructure or probably a few ways away, get into the same aws, azure, google cloud type of business. that is a new -- whole new shift and new benefit to meta. >> gene, we're almost out of time. i've only got about 30 seconds. why apple? that's the one that i think may be most underappreciated. >> apple's going to come out with their own foundation model, likely in june, and they're going to allow this to do personalized a.i. this is really going to capture, i think, 20% of the world's interest, and they can charge $10 a month for this. i think that's a significant opportunity that most investors believe apple is asleep at the wheel at a.i. that's the opposite. >> and very quickly, i'm guessing microsoft, not there just because they've already seen

i want to bring in doug clinton from deepwater asset management to walk through the numbers. what were you impressed by and unimpressed by and what will you do about it? >> andrew, you have to give the best grade to meta when you think about the earnings everything was flawless. earnings were great. buyback and addition to that was great. the guidance was really strong accelerating revenue growth off the great number in q4 they get the highest marks i actually think is the most interesting take has nothing to do with any of the three companies that reported last night. what mark zuckerberg talked about on the earnings call for meta is the year of efficiency the hunger that has brought to meta and pace of innovation was inspiring. i think that was a tell for google i think google needs its year of efficiency when you compare the energy on the call, which i think is a reflection of the pace of innovation at the company, to meta and to microsoft, it doesn't feel like it is on the same level i would love to see as a google shareholder and meta shar shareholder, i would love to se

the policy president doug showing, democratic strategist before clinton advisor.do you make of what the president said, he didn't waste time attaching criticism to donald trump. i don't know if this was the moment to be doing that but he did it. >> reporter: actions speak louder than words. president biden has words about donald trump's words but if you look at the track record of these two president and the trust american voters have a neither one of them when it comes to foreign policy matters and conflict in israel or ukraine or even in dealing with china more voters say they trusted donald trump likely because he subscribed to to a good policy of peace through strength. got to get back to that policy and projecting american strength around the world to honor dissidents like navalny and elsewhere. neil: he left out what he has done to punish vladimir putin in response to vladimir putin invading ukraine. something that happened under his leadership. it is a very important detail here. what do you make of the tone and tenor? >> they have yet in the white house to

but i'll tell you what's not, doug holtz-eakin, the '90s, at least in the second term of bill clintonewt gingrich and the republicans in the house, you and i were both around for all this stuff, we went into surplus. so i just want to raise this point. as a former director -- >> what's that, larry? if what's a surplus? larry: yeah, i know, a sur surplus. you're a former cbo director, an honest cbo director. dowe -- doug, we are running $. >> 2 trillion deficits as far as the eye can see, roughly 8% of gdp as far as the eye can see in a peacetime economy with a 3.7 unemployment rate. i don't know how you get that. when you're left, right or -- how do you get that? or sustain that? >> you don't sustain it. it's not sustainable, larry. something's got to give. the other thing you point out is, you know, it's gotten worse while we're at full employment. that's completely irresponsible. i mean, you just do not respond if a deficit with full employment. we've done that. and this is the bug withest headwind -- biggest headwind to better trend growth. when you borrow a ton of money, you're co