This is ONCE-IN-A-GENERATION earnings growth, expert says

[INAUDIBLE] >> MY NEXT GUEST REMAINS BULLISH ON THE MARKET BUT CAUTIONS SPENDING, SPENDERS HAVE TO BE CLEAR WHEN THEY COMMUNICATE RETURN ON INVESTMENT. WHILE MANAGING PARTNER, IT'S GREAT TO HAVE YOU IN STUDIO. THIS IS THE LATEST CONCERN THAT HASN'T SOME LEGITIMACY TO IT ALTHOUGH THE LAST COUPLE WEEKS WITH EARNINGS AND CONFERENCE CALLS, SOME HAS BEEN TAPPED DOWN. THEY ARE MOVING HIGHER NEVERTHELESS. >> ABSOLUTELY. I THINK THERE'S A LOT OF SKEPTICISM BUT WHAT'S HAPPENING WITH HYPER SCALER'S, THIS EARNINGS SEASONS, THEY CARE LESS ABOUT WHETHER THEY ARE EATING OR FIRE FORWARD AND IF THEY CAN CLEARLY ARTICULATE HOW THE SPENT IN A I WILL TRANSLATE INTO MONETIZATION AND INCREMENTAL RETURN ON INVESTMENT. >> YOU THINK MANAGEMENT IS GETTING BETTER TAX MICROSOFT, GOOGLE'S EARNINGS CAME OUT AND I THOUGHT THE NUMBERS WERE REMARKABLE LATER ON OTHER HYPER SCALER STOCKS STARTED TO TAKE OFF, MAYBE THEY WILL GET THE BENEFIT OF THE DOUBT. >> AND HE DID A GREAT JOB, ZUCKERBERG DID A TERRIBLE JOB AND CAME OUT WITH HIS ESSAY SO THEY ARE LEARNING. >> 6000 WORD ESSAY MAY NOT BE THE ANSWER EITHER. [LAUGHTER] ONE THING IS, YOU TALKED ABOUT YOUR CLIENTS KEEP ASKING YOU, HOW DOES HE KEEP GOING UP? WAR, INFLATION, WE ARE WITNESSING A ONCE IN A GENERATION EARNINGS GROWTH. >> WE ARE. AS OF LAST FRIDAY, 88% OF COMPANIES AND S&P REPORTED AND WE SHOW EARNINGS GROWTH YEAR OVER YEAR OF 50.4% SO THAT'S ONCE AND A GENERATION MIGHT DROP GOING INTO THIS QUARTER, EXPECTATIONS WERE EARNINGS GROWTH OF 23.1%, A LOT OF CONCERN THE BAR WAS SET TOO HIGH AND IT'S BLOWN OUT OF THE WATER. >> THAT'S 23% HISTORICALLY, SIGNIFICANTLY ABOVE THE AVERAGE ANYWAY. >> TRIPLE. AVERAGE INCREASE OVER THE LAST 20 YEARS. >> IT'S PRETTY CLEAR, PEOPLE WERE GOING BACK TO SHARPENING PENCILS AND A RECENT SURVEY, RATCHETING UP EARNINGS. AFTER YOU ANSWER, YOUR CLIENTS MUST BE SAYING, HOW MUCH LONGER CAN THIS CONTINUE? NOW THEY THINK IT WILL CONTINUE. >> ANALYSTS ARE ALWAYS BEHIND SO 2026, 365 FOR EARNINGS-PER-SHARE SO THAT WOULD IMPLY EARNINGS GROWTH OF 12%, QUARTER AFTER QUARTER OF 30%, AND ITS CONSERVATIVE. >> SENTIMENT, THIS MORNING, AND UPDATE WE CAN SEE IT OUTWEIGHS BULLISH AND INVESTORS INTELLIGENCE, WHY IS IT GOOD WITH SENTIMENT, NOT EVERYONE IS BULLISH. >> WE WANT TO BE CONTRARY IN SIMILAR TO PRIOR DATA, WE SEEN IN INSTITUTIONAL INVESTORS ARE OPTIMISTIC ABOUT THE MARKET. RETAIL INVESTORS ARE NOT -- THEY ARE STILL CAUTIOUS. >> LET'S TALK ABOUT STOCKS, MICROSOFT IS THE NAME YOU LIKE, IRONICALLY, THE WORK SOFTWARE MIGHT HAVE HURT THE STOCK FOR A LONG TIME LIKE A LOT OF THESE SOFTWARE NAMES UNDER PRESSURE, THEY CAP SCRATCHING THEIR HEADS WHAT YOU THINK THIS PART IS A GOOD PART. >> I DO, WE ARE MOVING FROM THE COMPANY SECOND, BUILD THE MODELS AND DATA CENTERS TO ONE SET CAN INTEGRATE AI INTO LARGE ENTERPRISES AND MICROSOFT IS AT THAT INTERSECTION WITH MICROSOFT 365 SO THEY HAVE SHOWN AN ABILITY TO MAKE AN INVESTMENT WITHOUT AFFECTING FREE CASH FLOW WHICH IS WHAT THE MARKET WANTS RIGHT NOW. >> AND THE RESPONDENT LAST WEEK. HE ALREADY, THE NAME WAS LIKE BEFORE AND STILL LIKE IT, A COMPETITIVE VOTE, WHAT DOES THAT MEAN? >> THIS COMPANY IS FOR VIEWERS WHO DON'T KNOW, MAKING INFRASTRUCTURE FOR DATA CENTERS SO THEY TALK ABOUT HOW THE COMPETITION IS. >> THAT HAVE A LIMITED COMPETITION. >> THEY DROPPED 17%. >> A BIG MOVE BUT BOUNCING OFF THE 200 DAY? >> SORT OF SAME THING, FREE CASH FLOW, A BIG ISSUE IN THE MARKET, COMPANIES AND THE FREE CASH FLOW, YOU SAY THEY ARE FREE CASH FLOW POSITIVE. >> EXPECTED TO BE AT 12.9% IN 2028, IT'S 33% 52 WEEK HIGH SO I THINK IT'S A MULTIPLE STORY, NOT OF EARNINGS DETERIORATION. >> IT'S GOING TO TAKE OFF SAY ELIZABETH