
Mad Money Host at CNBC
Member since: Sep '20 · 8338 Opinions
Is suing OpenAI, cleaming it stole Apple's IP to build its own consumer devices, essentially naming Apple employees who left for OpenAI. But some accuse Apple of sour grapes. Then again, OpenAI faces many lawsuits of wrongdoing. OpenAI's lawsuits could distract it from winning the AI race, Apple's suit could be the first of more IP ones.
Shares jumped 40 on its July 1st IPO, but has lost most of those gains. They have 500 million active users. They grow by buying mature tech companies, slashing costs and monetizing the existing user base. Revenues have growth from $387 million in 2023 to $1.31 billion in 2025, and boast 132% growth in Q1. Organic growth was only 13%, because most gains come from takeovers. Operating income was $84 million in 2023 and $278 million in 2025. However, at end of 2025, they carried $2.67 billion in debt and $630 million in cash, but climbed to $4.36 billion of debt in Q1. Doesn't like that the founders control 83% of voting power, so shareholders have little say. Trades at 15x last year's revenues, not earnings, so not cheap. Many of their businesses are software, which is vulnerable to AI takeover. Can they continue to deliver? But a little now and then at lower levels.
He fears bad news about Copilot, weaker-than-expected Azure numbers and software worries in the face of Anthropic developing its own software. But an analyst points to strength in their AI business, solid growth in sales, including Azure. Let it run, and don't sell.