Threads is not the reason why Meta's stock is up, Ritholtz's Josh Brown

TALKING, WHAT ELSE, META SOARING ON EARNINGS. THE COMPANY BEAT ESTIMATES ACROSS THE BOARD WHILE OFFERING UP STRONG GUIDANCE ROB, I'M COMING OVER TO YOU. YOU'RE LONG ON META. TWHAFLS YOUR TAKE ON THIS QUARTER? >> I THINK REALLY POSITIVE ACCELERATING GROWTH ACROSS THE BOARD. THEY CONTINUE TO EXECUTE THEY HIGHLIGHTED SOME OF THEIR USE CASES FOR AI THE STOCK IS STILL NOT EXPENSIVE. WE GOT LONG ABOUT TEN TIMES AND I THINK THISIS ONE OF THOSE COMPANIES IF THEY CAN CONTINUE TO FOCUS ON COSTS AND SEE THEIR CORE BUSINESS RE-ACCELERATE, IT SHOULD HAVE MORE UPSIDE. >> PEOPLE THOUGHT THEY WERE MIGRATING AWAY FROM THE PLATFORM KARI, YOU OWN FACEBOOK AS WELL >> YEAH. WELL, WHAT WE'VE SEEN IS WHAT WE EXPECTED WHICH IS STARTED WITH COST CUTTING AND THEY HAD EXCESS EMPLOYEES AND THEY HAD PRO JUKTS THAT WERE VERY UNPROFITABLE. THEY DID ALL OF THAT AND WE WERE IN A RECESSION FOR DIGITAL ADVERTISING AND NOW WE'RE STARTING TO SEE BETTER NUMBERS IN TERMS OF USAGE. NUMBERS ARE DOWN 18%, AD PRICES. ONCE YOU HAVE DEMAND KICK IN FOR A WHILE, WE'LL SEE BETTER PRICING, AND THAT WILL MOVE THE EARNINGS AND MOFFITTABILITY. WE REALLY LIKED WHAT WE SAW ON REELS. ANYTHING THAT'S TO TWITTER'S DETRIMENT IS TO META'S BENEFIT IT'S 20 TIMES NEXT YEAR'S EARNINGS THEY ARE LOOKING FOR A NAME THAT'S NOT EXCESSIVELY EXPENSIVE RELATIVE TO THE MARKET >> WE'RE EG UBS AND MIZUHO BUMPING UP YOU WERE GIVING YOURSELF A LOT OF TITLES. JUST TO PLAY DEVIL'S ADVOCATE BECAUSE THE STOCK IS UP BIG. THREADS IS NOT FULLY FLESHED OUT. DO YOU HAVE THE SAME CONCERNS? >> I DON'T THINK THREAD IS THE REASON THE STOCK IS UP TODAY I DON'T NECESSARILY THINK THE NUMBERS ARE NECESSARILY MATERIAL THE STOCK IS FINE WITH OR WITHOUT ANY MEANINGFUL CONTRIBUTION FROM THAT AREA. YOU WOULD THINK ABOUT THREADS THE SAME WAY AS HARDWARE YOU'RE TALKINGBOUT DOWN 40% YEAR OVER YEAR THEY FOUND A WAY TO LOSE $400 MILLION. $276 MILLION IN REVENUE. IT'S A ROUNDING ERROR. THE ADVERTISING BUSINESS IS RE-ACCELERATING TO ROB'S POINT THAT'S WHAT REALLY MATTERS IF, IN FACT, SOMETHING HAPPENS WITH THREADS WHERE THEY CAN SUSTAIN THE MOMENTUM THEY GOT IN THE FIRST FEW WEEKS AND CAN FIGURE OUT FACTORS THAT ARE A WINNING PRODUCT FOR ADVERTISERS TO STICK WITH, THAT'S GREAT. IT WILL BE A LONG TIME BEFORE THAT'S A NET CONTRIBUTOR IT'S MORE INTERESTING FOR PEOPLE IN THE MEDIA >> ARE YOU EXCITED ABOUT THE PROSPECTS OF LLAMA THEY SAY THEY WILL HAVE TO HIRE MORE HIGHER EARNING PEOPLE, ENGINEERS, AND PEOPLE TO BUILD OUT THEIR AI CAPABILITY. >> I'M MORE EXCITED FOR MY HOLDINGS IN AMAZON, MY HOLDINGS IN ALPHABET. WHAT THAT IS ABOUT IS THE CLOUD AND DATA CENTERS AND MY NVIDIA HOLDINGS THOSE WILL BE BIGGER SHORT-TERM BENEFICIARIES MUCH FASTER THAN THEY WILL ACCRUE TO THE BOTTOM LINE OF THE TURNPIKE LIKE META I DON'T SEE IT AS A PROFIT CENTER ANYTIME SOON. IT'S THE BEST AD PLATFORM. >> NOT WORRIED ABOUT ALL THE BELLS AND WHISTLES BUT THEY CUT THEIR WORKFORCE AND THAT DOESN'T COUNT ALL THE PEOPLE THEY LAID OFF. >> COULD YOU HAVE A COMPANY MAKE CUTS AS SHARP, AS ACUTELY AND AS QUICKLY AND HAVE REVENUE RE-ACCELERATE. THAT TELLS YOU THIS IS NOT A MIRACULOUS RESTRUCTURING IT TELLS YOU THE STRATEGY OF THROWING AS MANY PEOPLE, ENGINEERS, WHATEVER THEY WERE, AS YOU CAN INTO THE MIX AND THINKING THAT'S GOING TO GROW YOUR COMPANY IS A BAD STRATEGY WE SHOULD ALL BE GLAD WE'RE SEEING THE END OF. I THINK IT WAS A REALL

Channel: CNBC Television

Views: 9,079

Keywords: Fast Money Halftime Report, CNBC, business news, finance stock, stock market, news channel, news station, breaking news, us news, world news, cable, cable news, finance news, money, money tips, financial news, stock market news, stocks

Id: s57sFskfFdk

Length: 5min 29sec (329 seconds)

Published: Thu Jul 27 2023