THAT IS A RALLY, CASE CLOSED, A
RALLY ON THE NASDAQ AS WELL, BY
THE WAY.
>>> OUR NEXT GUEST SAYS TESLA,
THE STOCK, WILL GO UP AFTER IT
REPORTS PROFITS NEXT WEEK.
HE IS OUR GUEST TODAY.
ANDREW, WELCOME BACK TO THE
SHOW.
ALWAYS GOOD TO SEE YOU.
WHAT'S SO GOOD ABOUT THE
EARNINGS REPORT THAT WILL GET
TESLA STOCK UP AGAIN?
WHAT IS IT?
>> I MEAN, YOU CAN'T REALLY SAY
WHAT'S GOING TO BE GOOD ABOUT
THE EARNINGS REPORT BUT WE KNOW
ONE THING ABOUT ELON MUSK.
WHENEVER HE SAYS ANYTHING GOOD,
SOMETHING BAD MIGHT HAVE
HAPPENED.
WHENEVER HE TALKS DOWN THE
COMPANY AS HE HAS IN THE PAST
FEW WEEKS, YOU CAN LOOK FOR
SOMETHING GOOD.
I THINK THE DEMAND IS THERE FOR
THE CAR, THE CASH FLOW IS THERE
AND THE BODY LANGUAGE BY
MANAGEMENT, IF YOU READ THROUGH
IT WHEN HE'S BEEN TALKING THINGS
DOWN, PROBABLY MEANS HE PUTS UP
A GOOD NUMBER NEXT QUARTER.
STUART: BUT HE'S GOT TO PAY OUT
A LOT OF MONEY WHEN THESE BONDS
COME DUE.
DOESN'T HE HAVE TO HAVE THE
STOCK AT LIKE $350 PER SHARE AND
IF IT DOESN'T HIT THAT LEVEL,
HE'S GOT TO SHELL OUT A COUPLE
BILLION CASH?
ISN'T THAT THE SITUATION?
>> YEAH, NO DOUBT.
I MEAN, IT HAS TO BE OVER $350 A
SHARE FOR IT TO CONVERT AND IF
NOT, IT WILL EAT RIGHT INTO THE
CASH FLOW.
BUT IF THE COMPANY'S PRODUCING
THAT MUCH CASH FLOW, THAT'S A
PART OF BUSINESS.
IT WILL EAT INTO IT BUT WE'LL
SEE.
HE'S PROMISED THE AMOUNT OF CASH
FLOW THAT WILL SERVICE THE DEBT.
STUART: DOES HE HAVE THE MONEY?
>> IF THEY PUT UP A GOOD QUARTER
THAT IS EXPECTED, YEAH.
IT JUST SEEMS WHEN HE STARTS
TALKING DOWN THE STOCK, LOOK AT
MUSK OVER THE YEARS, WHAT'S
HAPPENED.
WHEN HE TALKS DOWN THE STOCK,
SOMETHING GOOD'S GOING TO
HAPPEN.
STUART: HAVE YOU BOUGHT IT?
>> I OWNED IT A FEW MONTHS AGO.
I'M LONG THE STOCK, SMALL, NOT A
LARGE POSITION, OBVIOUSLY IT'S A
SPECULATIVE STOCK.
I WOULDN'T SUGGEST ANYONE MAKE
IT A LARGE POSITION.
STUART: WHAT'S THIS ABOUT
RESTORATION HARDWARE?
YOU SAY IT'S GOING TO SEE A
BETTER THAN 100% RETURN IN THE
NEXT TWO YEARS, DOUBLING, IN
FACT?
WHEN YOU MADE THAT CLAIM, YOU
MOVED THE MARKET.
>> WHY NOT.
I THINK IT'S THE CLAIM ITSELF
THAT MOVED THE MARKET.
IF YOU READ THE REPORT IT'S
EXTREMELY VALID.
IMAGINE A COMPANY WITH ZERO
COMPETITION IN ITS SPACE.
IT'S AN AMAZING THOUGHT, TO
THINK NO COMPETITION.
IT'S A HIGH END RETAILER,
LIFESTYLE.
THEY WILL GET THE HOSPITALITY,
DINING, IT'S A LUXURY PLATFORM,
AMAZINGLY CHEAP.
ANALYSTS ARE COMPARING IT
AGAINST ETHAN ALLEN AND IT
COULDN'T BE DIFFERENT.
IT'S EXCITING.
IT'S A WONDERFUL CONCEPT AND
RELATIVELY INEXPERIENCE
CONSIDERING IT HAS NOT GONE
INTERNATIONAL YET.
STUART: LET'S TALK ABOUT
TWITTER.
I UNDERSTAND YOU BELIEVE
ALEXANDRIA OCASIO-CORTEZ HAS
MADE TWITTER MORE, AS YOU SAY,
FEMALE-FRIENDLY.
IS THAT A REASON TO BUY THE
STOCK AT $32?
>> WELL, I PUT OUT A NOTE A
MONTH AGO THAT I WAS VERY
CONCERNED THAT A REPORT WAS PUT
OUT BY AMNESTY INTERNATIONAL
DISCUSSING THAT TWITTER IS VERY
ANTI-WOMEN, FILLED WITH HATE
SPEECH AND A PLATFORM THAT MAYBE
ADVERTISERS SHOULDN'T GRAVITATE
TO.
WHAT'S AMAZING BY AOC, WHAT
SHE'S DONE IS TAKEN THAT
ARGUMENT AND THROWN IT ON ITS
HEAD.
WHETHER YOU LIKE HER OR NOT, ALL
POLITICS ASIDE, IT'S THE FACT
SHE CHOSE THIS AS HER PLATFORM
ALONG WITH THE PRESIDENT, MORE
VALIDATES IT TO MILLENIALS AND A
DIFFERENT E
DIFFERENT GENERATION OF USERS
BUT MORE IMPORTANTLY, IT'S
EMBRACED ADVERTISING DOLLARS AND
IT QUELLS CONCERNS THE AMNESTY
REPORT BROUGHT UP LAST MONTH.
STUART: FASCINATING.
YOU ARE AN ORIGINAL THINKER.
YOU ARE A VALUABLE GUY.
TALK ABOUT FACEBOOK, BECAUSE THE
LAST TIME YOU WERE ON THE SHOW,
YOU SAID BUY IT IN 2019.
STILL FEEL THAT WAY?
>> ACTUALLY, I PUT OUT A REPORT
ABOUT BUYING FACEBOOK AT AROUND
$128 I THINK A MONTH AGO.
THE TRUTH IS, FACEBOOK IS STILL
RELEVANT.
MY SON IS IN THE STUDIO RIGHT
NOW.
HE DOESN'T GET OFF HIS
INSTAGRAM.
PEOPLE STILL USE IT,
ADVERTISERS.
ADVERTISERS VALUE FROM IT.
I GET THE FACT IT WAS EVIL BUT
WHAT'S INTERESTING THIS YEAR,
THAT EVIL FACEBOOK WAS TRADING
AT A CHEAPER MULTIPLE THAN
PHILIP MORRIS.
IF YOU WANT TO CALL FACEBOOK
EVIL, PHILIP MORRIS NOT EVIL, WE
HAVE TO CHECK OUR VALUES.
STUART: I DON'T THINK THEY'RE
EVIL.
I JUST THINK THEY'RE BIG
BROTHER.
I HAVE A REAL PROBLEM WITH BIG
BROTHER.
ALL POLITICS ASIDE, YOU CAME
STRAIGHT AT IT THERE.
HOW ABOUT NETFLIX?
>> IT'S BUSINESS, JUST BUSINESS.
STUART: EXACTLY.
>> NETFLIX, NETFLIX IS THE
OPPOSITE.
I UNDERSTAND PEOPLE LOVE THEIR
NETFLIX.
NETFLIX, UNLIKE FACEBOOK, IS NOT
A PLATFORM.
THEY HAVE TO MAKE SHOWS,
RECREATE SHOWS, AND FOR SOMEHOW
THEY SEEM TO BE THAT JUST
BECAUSE THEY CAN EXPAND THEIR
PRICING, THE STOCK WILL GO
HIGHER, THEY STILL LOSE A LOT OF
MONEY.
I THINK THIS WILL BE THE YEAR
THAT WE WILL GRAVITATE TOWARDS
COMPANIES THAT MAKE MONEY AND
HIGH GROWTH COMPANIES THAT LOSE
MONEY WILL FALL OUT OF FAVOR.
I KNOW RIGHT NOW, EVERYONE'S ALL
GIDDY THAT NETFLIX CAN RAISE
PRICING BUT WHEN YOU SIT BACK
AND REALIZE THAT THEY MUST
CONSISTENTLY MAKE THOSE SHOWS
AND BURN THAT CASH, THE TRICK
DOESN'T SEEM TO BE AS VALUABLE
AS PEOPLE ARE PRESENTING IT
RIGHT NOW.
STUART: I REALLY LIKE IT WHEN
YOU GO THROUGH SOME OF THESE BIG
NAME STOCKS AND GIVE CLEAN-CUT
OPINIONS ABOUT WHERE THE MARKET
IS GOING TO TAKE THEM.
I ALSO LIKE IT THAT YOU DON'T
CARE, I DON'T THINK YOU CARE
ABOUT THE GOVERNMENT SHUTDOWN,
ABOUT CHINA TRADE OR THE FEDERAL
RESERVE.
YOU DON'T CARE THAT MUCH, DO
YOU?
>> I MEAN, THE POINT IS, AS
SOMEONE IN THE STOCK MARKET, I
CAN'T HANDICAP WHEN CHINA IS
GOING TO BE RESOLVED.
I CAN'T HANDICAP WHAT THE EFFECT
OF THE MARKET.
WHAT YOU TRY TO DO IS FIND GOOD
COMPANIES AND BUY THEM OR FIND
COMPANIES THAT EVENTUALLY BAD --
NOT BAD, OVERVALUED COMPANIES
THAT WILL GO LOWER.
YOU CAN'T HANDICAP POLITICS.
STUART: TRUE.
YOU CAN'T.
>> THAT'S WAY OUT OF MY PAY
GRADE OR ANYONE.
WE CAN HOPE FOR RESOLUTION, BUT
YOU KNOW, OF THE CHINA ISSUE,
BUT I THINK THE COMPANIES WILL
LOOK THROUGH IT.
STUART: CAN I TRY YOU WITH THIS
ONE?
I OWN A LITTLE BIT OF MICROSOFT.
I HAVE OWNED IT FOR YEARS AND
YEARS AND YEARS AND YEARS.
I JUST LET IT RIDE AND HAVE DONE
WELL.
SHOULD I SELL IT?
>> AMAZING MANAGEMENT,
MICROSOFT.
WHAT AN AMAZING JOB THEY HAVE
DONE.
THE ONLY SCARY PART ABOUT
MICROSOFT TO ME IS THAT THE
LEVEL OF COMPLACENCY AMONG
SHAREHOLDERS.
EVERYONE JUST LOOKS AT IT AS
LIKE AN ANNUITY.
IT'S THAT SAFE.
HISTORICALLY IN ANY STOCK WHERE
WE'VE HAD THAT FEELING,
SOMETHING DANGEROUS IS AROUND
THE CORNER.
BUT THAT BEING SAID, THAT'S JUST
A SENSEMENT.
IT REALLY IS OWNED BY A MASS
OWNERSHIP WHO LOOKS AT IT AS
BEING A ROCK.
STUART: OKAY.
I THINK YOU GOT IT RIGHT.
THERE'S THE ONE-YEAR CHART.
DID YOU JUST CALL ME A GENIUS?
YOU DID.
YOU ARE COMING BACK, ANDREW.
NO QUESTION ABOUT IT.
MY BEST REGARDS TO YOUR SON,