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The data center. The data center. The data center. I mean, you're probably tempted to say, enough already. It's the data center. Give me something else.
So on still one more day where the averages roared, the Dow jumping 790 points, S&P 500 advancing 1.02%. By the way, another new all-time high. And Nasdaq gaining 0.89% to also reach another record high. I got an idea. Why don't we take a look at some of the top performers in the S&P today, not the SanDisk and the Western Digitals. I know you're sick of all those. Just to figure out if they're real companies in here, if the data center is too narrow a concept to lead the stock market, or as a whole, is this list representative of what we want? Because if it's too narrow, then the market will have a hard time going further.
So, let's do this. I'm going to go down, literally go down the S&P stock gainers today. I'm doing a little bit of order changes just so we can get the narrative right. But let's see if they're representative of anything other than the data center, even if they are involved in it. So let's start with Quanta Services, PWR. This stock soared nearly 16% today. That's a big gain. It's an installer of power lines and infrastructures of all kinds. Quanta's been a decent company for a long time and it's been worth owning, but it's been roaring because it's the obvious winner when you want to build out the electric grid.
Management explains this very clearly right at the beginning of this incredibly stunning positive conference call they had today. Quote: 'Utilities are being asked to double in size. Technology customers are demanding speed at scale they haven't dealt with before.' End quote. See, this is a whole new way our country is doing business. A rally that includes Quanta tells you the data center is about a lot more than just the semiconductors and disc drives. Data centers are like giant mouths that must be fed with constant activity and never-ending electricity.
We know there are many ways for the utilities to produce more energy. The most frequent being converting natural gas to a GE turbine that's connected to the grid. Quanta builds that. They can also build the other end where the grid's connected to the data center. Quanta does this with American labor, high-paying jobs, using steel that's often produced by Nucor, the largest steel company in our country. Eaton, based in Ohio, makes the transformers needed to put that electricity into the data center. And when that electricity gets in there, well, you know what? It burns real hot.
We know that Eaton has cooling technology. So does Vertiv. But the one that was up the biggest today was Carrier. You know, the air conditioning company is up almost 9% after reporting a big upside surprise. I think this quarter may be the beginning of a multi-year move for the climate control company. Also had very good numbers out of Europe. Then there's Teradyne. Okay, now this is a little more arcane. This is up 12%. It's not new to this. It's been a tremendous performer during the data center buildout. It's a semiconductor test and measurement play.
Semiconductors are a fragile thing. When you first start building a new line of chips, you got to throw away a lot of them. No one can afford an error in a semiconductor given how many are in a data center. That's a lot of testing. But that's narrow. Okay, so I understand someone might say, Jim, that doesn't do it for me. And nor does this next one, Qualcomm. Okay, this one was up 15% today. It had been an out-of-favor semi. Now it's in favor. They just landed a big account with a hyperscaler. Don't know which one, but we do know that Qualcomm was considered more of a niche cell phone play, and no longer. It's branching out.
Kind of reminds me of its competitor ARM Holdings, a position we've been trying to build for the Travel Trust ahead of when it reports on May 6. Sadly, ARM has gotten away from us. The stock's going parabolic. You know, I don't buy parabolas. Okay. Then there's one that's totally away from manufacturing or industry or tech, and that's Eli Lilly. It was up 10%. Lilly astounded people today by reporting a fantastic quarter with encouraging prescription data for the new pill form GLP-1 drug, Orforglipron.
There was some worry that this drug had gotten off to a slow start. A lot of rumors going around Wall Street that it was a bummer. Novo Nordisk was said to be ahead of Lilly because it got approved earlier. As is so often the case, the Wall Street gasbags got it wrong. When David Ricks, CEO of Lilly, came on CNBC this morning, he said that things were pretty strong. Strong demand for the pill. More than 20,000 people now taking it, even as the company had only just started marketing it and building the brand. That's good news for my Travel Trust. We've been telling people to stick with Lilly no matter what. Just too much good going on there.
I think that Eli Lilly's gain, though, today is sensational, and this company is creating a lot of jobs, built factories all over the country. But it is, alas, a healthcare company, and healthcare companies are not good indicators of good times when it comes to the stock market. And drug companies, they're bad leaders. I remember the days when our economy ran only on the consumer, with some new homes thrown in.
However, with the arrival of data centers, it's no surprise to see that Caterpillar's on the list of hottest stocks, up 10% today. Caterpillar's got a ton of that led the Dow. That's why the Dow is up so much. It's got a ton of business from the data center buildout. In a new twist, though, investors, actual investors, are putting together groups, buying and then going and buying, okay, get this. Buying hundreds, if not thousands, of engines, Cat engines. They're stringing them up. They're putting them next to a natural gas, I don't know, like West Virginia, that kind of thing. That's actually where it's happening.
And they are taking the natural gas from the hills in West Virginia, pumping it through these actual Caterpillar engines, and building their own power plants basically off the grid. And this is just driving a huge amount of business for CAT. I was always worried these guys might have too much inventory. After I heard that story, I worried they don't have enough. And again, if the power grid has to get much bigger, that means a lot of construction for the utilities. Who do you think they're going to call? That's right, Caterpillar. And a huge number of workers again, strong for the economy.
How about Alphabet, up 10%, which is expanding by leaps and bounds, needs all the computing it can get. I'm going to go into more detail on Alphabet later, along with the other three mega-cap tech companies that reported yesterday. But Alphabet's strength is not bad for this economy, it's good. Then we got Ciena, up 11%, networking equipment. You need to get all these chips talking to each other. Ciena's been in networking forever, and as well as Arista Networks and Cisco are the big three of the industry, and the stock's been strong for ages.
And finally, there's another company that used to be something else. It isn't anymore because of the data center, and that's Iron Mountain. I used to know it as a paper shredder. They've done a big pivot, though, and are taking their massive document storage facilities and leasing them next to the hyperscalers who need space for racks of their artificial intelligence chips. Yes, they too are cashing in on the data center.
Now, I know that it wasn't on the list, but this evening we got a staggering set of numbers from Apple, or at least I thought so, as there was a controversy over how strong the iPhone really was. But I've got to tell you, I think that Apple is having no controversy whatsoever. And tomorrow we'll realize that revenue up 17% is pretty darn good. That the guidance is good. And as far as I'm concerned, you had a chance to buy it after they reported. And people once again didn't understand the greatness of Apple. They should watch the show maybe occasionally. I don't know, maybe once every 30 seconds, because I say Apple, you own it. You don't trade it.
And by the way, you know who agrees with me? Intergalactically, on the Artemis 2, they were taking pictures of the Earth from the dark side of the moon. Came out a lot better than a lot. Hey, I got the 17 Pro Max, man. It's fabulous.
Now, if we look at all these winners, what do we see? I think it's a manufacturing mosaic the likes of which we haven't been seeing since we decided to outsource a huge percentage of our industrial base to China or other countries with cheap labor. I know that the data center seemed fringe in terms of its impact on the so-called real economy a year ago, but this quarter, what happened? It went mainstream. And from listening to so many of these conference calls, I say we're in the early innings of this buildout.
Listen, I got nothing against any other sector, including the consumer sector, the healthcare sector. But the bottom line, as far as I'm concerned, the data center is a windfall for almost every slice of the economy. I say don't look a gift horse in the mouth, and instead maybe you buy some of these stocks. I think there's some real winners on that list. I'm going to go to Mark in Illinois. Mark.
Oh yeah. To the great sensei of the retail investor, Jim.
Well, you're very kind. That is what I like to think of myself as, something like that. But my wife says that'll give me a very big head. How can I help?
Well, I went to my wife's hospital gala, and they were raising money for a surgery suite, and they said Da Vinci was in the other room. And I said, this piqued my interest because I thought the guy died over 500 years ago. Anyway, it was a surgical robot. So I looked into it, and the company had a great quarter, at least from my thoughts. I'm wondering what your thoughts are on Intuitive Surgical.
Isn't that funny? I did the same thing years ago for the Overlook Hospital when we wanted to get a Da Vinci. By the way, Da Vinci actually now works at Nvidia. But here's the thing. Both J&J and Medtronic claim they've got competitors, and I am worried that one of those two is going to hit pay dirt, and that is going to hurt Intuitive Surgical. Thank you for the call.
All right. The data center buildout is a windfall for the entire economy, and I think we're still in the early innings of this revolution. On Mad Money tonight, Mastercard moved lower today despite a top and bottom line beat. So maybe you're getting a buying opportunity in the payments giant. I got the CEO to learn more. And four members of Big Tech reported last night. I'm combing through the results to see who's leading the pack in the AI race. And the shares of Reddit are on the move after the earnings crossed the tape. I'm going to sit down with the CEO. Very rarely do we get to add some insight into that company, but I got to tell you something. It's on fire. It's David Kramer.
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All right. What just happened to the stock? One of my longtime favorites, Mastercard. This morning, the payments company reported what I thought was a very strong quarter in the face of a very tricky economic backdrop. Stock sold off more than 4% today. It's now down 12% for the year. While Mastercard delivered a healthy top and bottom line beat, their guidance to some was a little disappointing on the expense side. So the stock got hit. I don't think it should have been down 4%, though. Could this pullback be a buying opportunity? Let's check in with Michael Miebach. He's the CEO of Mastercard to find out. Mr. Miebach, welcome back to Mad Money.
Thanks, Jim. Thanks for having me.
Okay. 3.7 billion people, right? The most technologically oriented of these kinds of cards, a system that can actually be the payment system of whole countries. Are we looking at it too small when we think, uh-oh, they had a little bit more expense than they should have this quarter?
Okay. So I have to agree we are.
If you look at the quarter, we beat our own expectations. We beat the market expectations. Then you start to look at the numbers and you start to see the underlying growth. We continue to grow. The payment market continues to grow. Our customers are buying our value-added services and solutions. So it's been very strong. But then you start to look at the complicated backdrop that you talked about. So we do have geopolitical tensions. We continue to monitor that. But you know, when you look at the facts of underlying consumer spending, that's been healthy. It's been healthy in the fourth quarter. It's been healthy in the first quarter. So there's really no change there. But spending patterns have been changing. They have been changing because of, like, the travel impact from the Middle East conflict, for example, just to name one. But are they spending less? No, they're spending it differently.
Well, I think that you, in your first paragraph in your excellent call, you said, look at the macro picture. The economic foundation remains generally supportive, healthy underlying consumer and business spending. However, the backdrop remains uncertain, driven by geopolitical tensions, which has put some pressure on cross-border travel. I think anyone who's traveling to the Middle East has to rethink the plans, and you're an international company, so it will hit you.
But are they going to go and sit at home and do nothing? No, they're going to go somewhere else. But you got to book a new trip, and so we'll see how the rest of the year will go. All right. So I agree, nothing to worry about the consumer spending.
Okay. Now you are doing some things that astonish me. You are already predicting what the agents are going to do, which is run amok, right? I've just started using agents. I almost felt like maybe I shouldn't do it, but you already have a plan for them too, don't you?
We do. So, you know, in the age of AI, one of the use cases that is going to hit us first in our everyday lives is agentic commerce, you know, where people are going to change their ways and how they're going to find a product online, for example. So they're going to start to use maybe an LLM of their choice or a very large merchant, and they're going to ask some AI-driven agent that says, what is the best product for me? And then why would you stop there? Why would you not, right at that moment, tell your agent, why don't you buy these products for me? I like what you recommended. And then there's a very simple checkout process, as you do it today when you're, you know, with your favorite digital wallet. What it might be, of course, is a Mastercard behind it. So we're looking at a paradigm shift. Now, for something like this to actually scale, you got to keep safety and security and trust in mind.
Because if you're using a solution like that, asking an agent to buy something for you, and then something goes wrong and there's no protection and you don't know who to call, what to do about it, then you're not going to use it again. So we're at the start of this paradigm shift. So the whole industry is really busy right now ensuring that there's protocols that ensure safety, that it's clear who these agents are, which company are they from, are they meeting the rules, what happens if something goes wrong, etc., etc. So that's what we're very focused on as a company, and we're leading the industry there.
One of the key things is actually this very specific question. So, this agent buys a pair of running shoes that you have, okay? But they come in the wrong size, and you're going to say, you call the agent that something is wrong. What do you do? And you know, if something is not clear, was it actually what you ordered, or do you just claim what that ordered? So, where's that proof? The untampered proof on what actually happened that can go back to the bank and the merchant to basically say, no, no, this consumer is right. We just automate it. Whole thing is reversed. You do your return. Done. As you are used to today. How do you do this amongst agents? Verifiable intent. Google and us came together. Google and Mastercard put out this particular protocol, verifiable intent. So we're now ready for agentic commerce. If something goes wrong, as it does in everyday life. So that's a real step forward. So this is happening as we speak. It's still very early days now. A lot of people just continue to buy the way they do. But this will change very quickly. I think it's a tremendous upside opportunity for us as a company.
Oh, definitely. Now, it's early days for some of us, but not early days for you guys. The concept of the stablecoin, the concept of the payments business as the kind of the national, the international treasury, and you're at the forefront of that.
We are. So, as a company, you know, we have card in our name. And of course we love cards, and cards are particularly good for one use case, that is, if you buy something, you buy something in a shop or online, great, this has been solved. You don't need to solve that with stablecoins. Stablecoins are, though, a great technology because they're very fast, they're available 24/7, and they're programmable. So if you take that technology and instead of, say, what are some use cases that you can solve with this technology now as a payments company, if there are such use cases, we want to offer that technology. Cross-border remittances, disbursements, things that take days today, they're not transparent, you know, what is it going to cost. So this technology, I think, is going to unlock a lot of new flows today that don't even come to Mastercard. So we can be behind the stablecoin to ensure that the same thing we just talked about in agentic commerce, cards, all the protections, all the safety. 3.7 billion people out there have our cards today, and they have certain expectations. Now, if there's a stablecoin behind it, why would you expect anything different?
So, imagine fast forward, a lot of people start to use stablecoins. There's a lot of issuers that put out stablecoins. Then you have a world of multiplicity, many chains, many stablecoins, and you start to get in a situation where you want to pay me in a stablecoin of your choice, and I want to be paid in a stablecoin of my choice. Payment choice matters. Who will be in the middle to ensure this can happen?
Interoperability. That's what we do today. That's what we will do in an age of stablecoin. And that is basically just us enabling any kind of payment choice on whatever is the latest technology.
Well, because one of the reasons why I didn't understand the stock just down. You're the most forward-thinking of the payments companies, and you got the best brand. There, well, there's another brand that's also quite good. We know that. But when it comes to things that we're talking about, you're well ahead, as you have been since you've been teaching me about this for a very long time. So I want to thank Michael Miebach, the CEO of Mastercard, MA, a trust owner for a very long time. Have to go back and look at it because it's just too low. Doesn't make any sense to have money back in.
Coming up, now that the dust is settled on yesterday's mega-cap earnings reports, Cramer is ready to sort through the aftermath. He's diving in next.
Last night, we heard from four of the largest tech companies on the planet, and that's Alphabet, Amazon, Microsoft, and Meta Platforms. All right, at the same time, as I mentioned at the top, presumably because these guys are just trying to make my life difficult. Now that the market's had a full 24 hours to digest these numbers, I want to dig into what we heard from big tech and what it means for the rest of the market. Why don't we start with Alphabet, which saw its stock up 10% today in response.
Alphabet reported an incredibly strong quarter with 22% revenue growth, 82% earnings growth, 82%. Both coming in well above expectations. All right, the quarter wasn't perfect. They had some small business, YouTube advertising, and the Other Bets business. The most important parts of this company, though, were very much strong. The core Google Search division was up 19%. Google Cloud, their web infrastructure business, saw its sales skyrocket 63% to 20 billion. This is the part of the business where they've been spending a fortune on data centers. Right now, that's looking like a great investment. Yeah, you heard me.
What else? We know that Gemini Enterprise saw paid monthly active users jump 40% quarter over quarter. They also talked about the tremendous demand for their custom-built TPU chips from AI labs and other customers. Now, this you have to understand, that's stuff that they make. Okay, that's not Nvidia. Now, Google did bump up its full-year capital expenditure budget by $5 billion, take it to the $180 to $190 billion range. CFO Anat Ashkenazi mentioned that they expect the capex budget to significantly increase again in 2027. Like, insane amount of money, but outputs producing spectacular results. So, Wall Street was happy to get behind it. See, they not only have that line of sight that I talked about, they are coining money now.
Next up, Amazon, very good numbers. Even if the stock didn't get any love. The stock was volatile in after-hours trading and ultimately gained less than 1% today. In the end, I thought it was a very solid quarter. 17% revenue growth, 75% earnings per share growth. Ladder being much, much better than expected, even if it included a large pre-tax gain from Amazon's early investment in Anthropic. Still, when you look at the operating income, that was up 30%, also well above expectations. The stock should have been up more, but you know, it ran into the quarter.
Amazon's retail business was strong. Advertising business boomed, up 24%. Now, Amazon Web Services, this ended up being the star of the quarter, up 28%, its best growth in almost four years. That's a huge increase on a $129 billion division of Amazon's. Their custom chip business now has a $20 billion annual revenue rate. That's going to go much higher. So, what's the problem here? Amazon's guidance for the current quarter was more mixed. Good revenue, but merely in-line operating income. I think the stock would have gotten hit even harder if Amazon had raised its full-year capital expenditures forecast.
Hey, for what it's worth, though, I thought the CEO, Andy Jassy, was the most thoughtful explainer of why that spending will pay off. These data center investments are very profitable for Amazon. I think the stock goes higher. I was surprised that it didn't go more higher, but remember that's that parabolic move that I tell you about. Parabolic moves do not continue. They consolidate or they go down. I think this one's just consolidating.
Third, there's Microsoft. Much tougher. Okay, and I mean like much tougher. They got clobbered today, down nearly 4%. Ouch. I didn't want this, but rooting don't mean anything, right? We don't root for stocks, not sports teams. It is just tough. Microsoft delivered a nice top and bottom line beat. Revenue...
Up 18% year-over-year. Earnings up 23%. All major segments came in ahead of expectations. The key number for Microsoft these days is Azure revenue growth. That's the company's cloud infrastructure business and it's where the lion's share of Microsoft's investments have been going. For the quarter, Azure revenue grew 40% year-over-year. Fabulous, four points ahead of expectations. Some people say two points ahead. Then we got what I thought was a solid conference call. Management said Azure could grow 39 to 40% in constant currency during the current quarter. That's much better than what the analysts were expecting. I cheered that.
But then there's Microsoft's overall revenue guidance for the current quarter. And that was a little light, and their total paid Copilot users was 20 million, which, you know, some were underwhelmed by that. I thought it was okay. At the same time, Wall Street didn't seem to like what Microsoft had to say about its capex budget. Unlike the other big tech companies, they had basically been giving you this guidance on a quarter-by-quarter basis. This time management said they'd have $40 billion in capital spending this quarter, higher than expected, and they indicated it could go even higher in the coming quarters, offering a capex forecast of $190 billion for the calendar year in 2026. After that capex commentary, the stock started rolling over in after-hours trading and it kept sinking today. In the end, I think Microsoft just didn't give investors enough good news to justify the elevated spending levels that they were projecting.
Do you know that this was actually looking up nicely, but people hadn't put pen to paper and figured out that they were spending a lot. They're spending more money. We don't want that. Finally, how about Meta Platforms? Oh, man. This one really bothered me. It's being clubbed like a baby seal. You know, everything like that. Down more than 8% today. It's a shame because the company really did report a good set of numbers. 33% revenue growth, big beat, 62% earnings per share growth, which was much higher than expected. But ultimately, investors focused on a couple of negatives that are real negatives. First, Meta's family daily active people, their term for users, missed expectations and actually shrank versus the previous quarter. Okay, look, they blamed outages in Iran and blockages in Russia. But that was cold comfort to shareholders. I don't like blame. On top of that, Meta raised its full-year capex outlook by $10 billion, taking it to a range of $125 to $145 billion, blaming the increase on higher component prices, especially for memory and data storage. We saw a lot of those companies report in the last 24 hours. They're making too much money, but what can you do? It's capitalism. I think Meta simply just didn't do a good job of justifying their AI spending. I welcome them to come here and we can sit down and figure it out. At this point, it sure feels like Meta is suffering from the lack of a cloud infrastructure business. Something that's been pretty good for Alphabet is good for Amazon and Microsoft too. It's very easy to explain how building data centers can make this kind of business more lucrative. Now, Meta would tell you that their spending is working too, pointing to how their AI tools are boosting the core advertising business. For example, CFO Susan Li said, quote, 'Usage of our ad creative tools is also scaling, with more than 8 million advertisers using at least one of our Gen AI ad creative tools, particularly strong adoption among small and medium-sized advertisers.' End quote. And the daily users miss notwithstanding, Meta's overall numbers are pretty impressive. It's their best revenue growth in five years. For God's sake, let's not get too down about this thing. It's just that Meta is not the same as the other big tech companies that are seeing their cloud infrastructure divisions explode. At the end of the day, Meta is spending heavily like the other hyperscalers, but it's seeing the benefits come through an advertising business, not a cloud business. And investors just aren't as impressed with that. Remember, a lot of that has to do with small and medium-sized business. People are always worried that they're not going to do well if the economy slows down. Maybe the Meta sell-off today is overdone. I'm going to spend a lot of time with club members to try to figure that out. But it happened. Here's the bottom line. When you look at last night's four mega-cap tech earnings reports, each of these was an opportunity for management to explain how their enormous AI data center investments are paying off. Alphabet did that very well. Amazon did it okay. Microsoft didn't quite do it. And Meta, I don't know. Clearly something's wrong. They've got to do something there because a pop in advertising is not enough to convince Wall Street that that huge capex bill is worth it. Let's go to Jerry in Missouri. Jerry.
Hey Jim, thanks for taking my call.
Oh, absolutely. Jerry, what's up?
Jim, late last year you had great expectations for this stock and it went up and then it came back down and my position overall has barely moved. Do you see any catalysts at all for Palantir when...
Okay, I'm glad you asked about Palantir. See, I'm looking at Palantir as a longer-term investment. It did have... Look, it shot up. It went to 150, did good, then went to 200, did that, came back down, but nothing's changed in terms of how great they are. And I know that it's difficult to say, 'Hey, let's buy a stock at 200 because it's great,' but I will tell you that this company is firing on all cylinders. It's just the stock right now acts as if, well, it's done, and it's not done at all. And I thank you for the call. After viewing all four earnings reports from the mega caps, it's clear that Alphabet was the biggest winner of the bunch, while Meta has some explaining to do with the capex bill, but I think they can do it. They just have to figure out how to make it pay better. Much more on the beaten-down race quarter. I'm going straight to the CEO to learn what's next for what I think is a very exciting social media platform. And it's nearly impossible to study all the companies reporting during earnings season. But tonight, I'll reveal my process to keep an edge during the busiest part of the quarter. Of course, all your calls rapid fire in tonight's edition of the lightning round. So stay with Cramer.
Reddit, with a stock that's down 36% for the year, reported after the close. I thought the numbers were excellent. Management also gave strong guidance for the current quarter. I think this remains a terrific story, one I highlighted in 'How to Make Money in Any Market.' Reddit's basically become a database of human conversations on the internet and it's essential for training artificial intelligence models, and they're doing all this without the massive capital spending plans of other big tech companies. To me it's a winner, and the after-hours market agrees with me, the stock's up big. Earlier today I got a chance to speak with Steve Huffman, he's the co-founder and CEO of Reddit. Take a look.
Mr. Huffman, welcome back to Mad Money.
Thank you. Glad to be here.
Okay, so Steve, I want to get to the numbers, but there's something that caught my eye in your letter that is so wonderful. It's in your letter: 'Reddit conversations are like oil for the modern internet.' Expand on that because I think it's just a brilliant way to look at your company.
So if we look at where the internet is going right now with AI, it's becoming more sanitized, summarized, optimized for attention. People want to hear what other people are saying, including AI. What we say is there's no artificial intelligence without actual intelligence. The knowledge has to come from somewhere. And Reddit is one of the primary sources for that sort of information that AIs crave, but also that people crave in the AI world.
Absolutely. And then a foundational resource that powers literally the next generation of technology. I think you're far ahead of where everybody else is right now.
The irony is that we've been playing the same game for 20 years.
But no, let's puzzle over that.
it got to you. It's catching up to where you are. Is that what's happening?
I actually think that's a lot of what we're seeing is the market is coming to Reddit. I think of Reddit as three chapters. The first, in the early days, is Reddit's not traditional media. Right. The second chapter is Reddit's not social media, which is social media in the way they do things actually helped Reddit make sense because Reddit's more authentic, more people-centric, community-centric, more deep. And now we're in this third chapter, which is Reddit is not AI. And so as the internet keeps evolving and Reddit keeps doing the same human-focused work, right? We just continue to stand out.
Now, at the same time, I mean, look, it's your seventh consecutive quarter with revenue growth over 60%. Industry-leading gross margins of 90%. Now, I was talking to someone yesterday, one of the hyperscalers. I said, 'Oh my god, you guys have 90% gross?' Because, Jim, no one has that. We're fortunate enough to have 80. I don't know anyone who has 90. How do you explain that?
We're a lightweight company. So, we are building a consumer product. So, we use AI. But our capex this quarter was $1 million because what we're not doing is...
