00:00I'm looking at CoreWeave because this stock is down more than 4%.
00:04It's one of its competitors, Nebius, also down about 3%.
00:09This is because of a joint venture between Google's Alphabet and Blackstone.
00:13It's putting pressure on these, what they call, neocloud stocks.
00:16So the venture is going to create a new cloud focused on tensor processing units.
00:22These are TPUs.
00:23Blackstone is going to commit $5 billion.
00:25This is going to bring 500 megawatts of cloud capacity online next year.
00:30And so a lot of analysts, of course, are weighing in on this.
00:32There's one Bernstein analyst who noted that the deal is, quote,
00:35not immediately problematic for CoreWeave,
00:38but it does represent the beginning of a more earnest hyperscale attack of the market.
00:43That is not what you want to hear if you're a CoreWeave or a Nebius.
00:47And so we're seeing those stocks take a hit now.
00:49Are these the people that are directly involved where people don't want data centers?
00:55They want to boo at commencement speeches.
00:58I mean, they're Core AI cloud, right?
01:03I mean, that's what they are.
01:05That's what they do.
01:05And now the hyperscalers who do a whole lot of other things are encroaching on their business.
01:10And they're saying this could actually hurt their transition towards that sort of really lucrative
01:14enterprise-heavy base of customer because you've got the hyperscalers moving in.
01:19So we're seeing some pressure there.
01:20Let's move on to Meta.
01:22So here's what's going on.
01:23Big week for Meta employees.
01:25They told employees today, or actually yesterday,
01:28that it was going to reassign 7,000 workers to focus on new initiatives around AI.
01:33But it comes the same week the company's planning to lay off 10% of its workforce.
01:38That's about 8,000 workers as they refocus around becoming more efficient
01:43with regards to artificial intelligence.
01:46So they're just one of a string of companies doing this, right?
01:50Microsoft Block, Coinbase recently announced similar cuts because of AI.
01:54But it's not just technology.
01:56Standard Chartered, right?
01:57The British-based bank today announcing that it's going to be having some job cuts because
02:04it's going to incorporate more AI, especially into those lower-end jobs.
02:09People say over time it's going to add jobs.
02:12I don't know.
02:12We're not seeing it yet.
02:14If that's happening, maybe it's shaking out this way up front.
02:17And this is affecting, going back to Tom talking about commencement speeches,
02:22it's affecting the grads who are trying to break into this job market.
02:26To be clear, this is not search engines.
02:28It's AI agents.
02:30Like, I got three bullet points.
02:31Workflow chaining, strategic direction, error debugging.
02:36Is it agentics?
02:37Is that what they call it?
02:38Oh, I got it.
02:40We're talking about a sophisticated studio here.
02:44Gosh.
02:44I mean, we're still all learning.
02:46You know, we're learning with the rest of the industry.
02:48One more.
02:49What do you got?
02:49All right.
02:49Home Depot, because we've got to do it.
02:50We've been talking about it all morning.
02:52But it's sort of like the litmus test for where consumers' heads are at.
02:55So there's a key metric here, which is sales open at least a year or comparable sales,
03:00slightly below estimates.
03:02And they are admitting you've got elevated interest rates, high housing prices.
03:07People are uncertain.
03:08They're even holding off on upgrading and those home improvement projects.
03:12And they said they're not sure yet.
03:14Home Depot says they're not sure yet when high gas prices are going to force them to start
03:18raising prices because it takes gas to get the products to their stores.
03:22And so they don't know if they're going to pass that along to the consumer.
03:25But overall, I think the story from Home Depot is consumers are still resilient.
03:28They reaffirmed their guidance.
03:30So they're still holding on.
03:31But the results were not as good as expected when it came to comparable sales.
03:35Oh, by the way, this week, Lowe's and Target tomorrow.
03:37So more big box retailers.
03:39And then we're going to hear from Walmart on Thursday.
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