Dan Niles: Public cloud compute will be next phase of Meta monetizing AI

>> AND COMING OFF A RECORD CLOSE, BOOSTED BY NVIDIA CLOSING IN ON THIS $6 TRILLION MARKET CAP, LET'S BRING IN NILUS INVESTMENT MANAGEMENT FOUNDER AND PORTFOLIO MANAGER DAN NILES. GIVE HIM A LITTLE ROUND OF APPLAUSE ON THIS CALL. DAN, YOU FEEL GOOD ABOUT THAT? >> HOW CAN YOU NOT? I GET PLENTY OF THINGS WRONG. SO IT'S NICE TO HAVE A NICE BIG WINNER FOR A CHANGE. >> WHAT DID YOU SEE? I MEAN, WERE YOU ACTUALLY LOOKING FOR A PHYSICAL AGENT TO COME AROUND? AND WHAT DO YOU DO NOW? >> YEAH, I MEAN, I THINK WITH META, WE WROTE ABOUT IT ON SEPTEMBER 7TH AND WE SAID, LOOK, THE STOCK'S DOWN 7% YEAR TO DATE. ZUCKERBERG IS REALLY SMART. HE'S VERY FOCUSED ON MONETIZING ALL OF THIS SPEND. AND YOU GOT THE MUSE API. SO THAT'S FOR BUSINESSES. AND THEN THE NEXT WEEK YOU GOT THIS AGENT AND YOU CAN KIND OF THINK BACK TO OPEN CLAW. THAT'S WHEN PEOPLE GOT REALLY EXCITED ABOUT AGENTIC AI. AND THAT WAS, YOU KNOW, JANUARY 30TH THAT GOT FORMALIZED. BUT THAT'S KIND OF HARD TO DO, RIGHT? YOU GOT TO BUY A MAC, YOU GOT TO SET IT ALL UP. THIS IS KIND OF MY MUSE IS THE AGENT FOR THE REST OF US, AND IT'S PRETTY EASY TO USE, ETC. AND SO I THINK WITH META, YOU STILL HAVE TO LIKE IT BECAUSE I THINK THE NEXT BIG THING THAT COMES FROM FROM META IS HEY GOOGLE MICROSOFT AMAZON, ALL HAVE PUBLIC CLOUDS. META DOESN'T. AND SO THAT WOULD BE THE NEXT PHASE OF THEM BEING ABLE TO MONETIZE THAT HUGE AI SPEND. AND RIGHT NOW, YOU KNOW, META MUSE IS NUMBER ONE ON THE APP STORE. IT'S ABOVE CHATGPT. AND SO IT'S HARD NOT TO SAY, HEY, YOU SHOULD HAVE A POSITION IN IT. DO I LIKE IT AS MUCH AS I DID ON SEPTEMBER 7TH? OF COURSE NOT. I MEAN, IT'S UP A TON, BUT I THINK YOU STILL HAVE MOMENTUM IN IT. >> DO YOU WORRY ABOUT SEARCH PER SE? I MEAN, ARE WE BACK TO THAT ON THE ALPHABET DISCUSSION? >> I MEAN, YOU DO THE OTHER SIDE OF IT. I ACTUALLY LIKE ALPHABET QUITE A BIT, IS THAT PEOPLE HAVE SAID, YOU KNOW WHAT. THEY'RE NOWHERE NEAR THE FRONTIER. WELL GUESS WHAT. THEY PUT OUT A MODEL, YOU KNOW LAST WEEK THAT IT'S NOT FORMALLY OUT. EVERYBODY CAN'T USE IT. BUT YOU LOOK AT IT RELATIVE TO THE BENCHMARKS. IT'S IT'S AT THE FRONTIER NOW. NOW, WHAT I DON'T LIKE IS THEY DON'T HAVE AN AGENT OUT THAT COMPETES WITH. AND BY THE WAY, YOU'RE GOING TO GET AGENTS FROM ALL OF THESE COMPANIES, RIGHT? OPENAI LAUNCHED ONE CALLED DOTS AT THEIR DEVELOPER CONFERENCE LAST WEEK. I THINK IT'S REALLY IMPORTANT FOR GOOGLE TO GET ONE OUT THEMSELVES. BUT YOU'RE RIGHT, CARL, LIKE SEARCH IS SOMETHING I'M LOOKING AT. I DON'T THINK IT'S A PROBLEM BECAUSE REMEMBER WE WERE WORRIED ABOUT SEARCH, YOU KNOW, GOING BACK A COUPLE OF YEARS AGO. AND THEN GOOGLE CAME OUT. THEY HAD THEIR ENGAGEMENT GO UP. MONETIZATION WAS GOOD AND THEY SORT OF INTEGRATED IT IN WITH SEARCH AND BUSINESS HAS BEEN BOOMING FOR THEM. AND LET'S NOT FORGET GOOGLE CLOUD. THEY'RE DOING OVER 80% YEAR OVER YEAR REVENUE GROWTH IN THAT BUSINESS. IT WAS THE FASTEST ACCELERATION BETWEEN THEM, MICROSOFT AND AMAZON LAST QUARTER. AND I EXPECT TO SEE THAT MOMENTUM CONTINUE. SO I ACTUALLY LIKE GOOGLE QUITE A BIT. BUT YOU'RE 100% RIGHT. YOU GOT TO