>> SPECIFICALLY WILL YOU BE IN
TERMS OF --
>> EXCUSE ME --
[INAUDIBLE]
NEXT.
THOSE QUESTIONS ARE NOT COOL.
NEXT.
I THINK PEOPLE SHOULD DEFINITELY
NOT BUY OUR STUFF.
I AM NOT HERE TO CONVINCE YOU TO
BUY OUR STUFF.
DO NOT BUY IT IF VOLATILITY IS
SCARY.
>> WHAT -- HOW -- WHAT
PERCENTAGE HAVE ACTUALLY
TAKEN --
[INAUDIBLE]
CHARLES:
ALL RIGHT.
WELL, IT'S THE CONFERENCE CALL
HEARD AROUND THE WORLD AS ELON
MUSK TOOK ON WALL STREET ANALYST
ARES WITH REPLIES LIKE, NEXT,
EXCUSE ME, BONEHEAD QUESTIONS.
ALSO WE'RE GOING TO GO TO
YouTUBE.
THOSE QUESTIONS ARE SO DRY THAT
THEY'RE KILLING ME.
MUSK NOT ONLY DISSED THOSE
FOLKS, BUT SUGGESTED THAT
INDIVIDUAL INVESTORS WERE ASKING
SMARTER QUESTIONS ON YouTUBE.
WALL STREET, THOUGH, THIS IS A
GREAT MOMENT TO ASK ABOUT THE
ROLE OF ANALYSTS.
WHEN IT COMES TO THE WORK, AND
MAYBE SOMETIMES CAN IT BE CLOUD
BY PRIVATE EGO.
JOINING ME NOW, ERIN GIBBS,
PERFORM MANAGER.
DAVID NELSON IS BACK WITH US AS
WELL.
SO FIRST, THE CONFERENCE CALL.
WAS IT CLASSIC ELON MUSK OR DID
WE LEARN SOMETHING THERE IN
GENERAL?
>> THIS WAS MORE OUT THERE THAN
NORMAL.
I MEAN, WE'RE USED TO HIM BEING
MORE OF THE VISIONARY, A LITTLE
MORE COMPOSED, AND THIS WAS
CLEARLY HE CAME IN ON THE
DEFENSIVE.
AND WHEN YOU START INSULTING
PEOPLE AND JUST KIND OF GOING
DOWN THAT ROAD, IT DOESN'T LOOK
GOOD WHEN YOU'RE IN THAT KIND OF
LEADERSHIP ROLE AS THE CEO.
SO I WOULD SAY OVERALL HE CAME
OFF VERY POORLY.
CHARLES: DID HE HURT HIS --
>> I WOULD TAKE IT A STEP
FURTHER, HE WAS KIND OF AN ASS
ON THE CALL.
[LAUGHTER]
THESE ANALYSTS ARE TRYING TO DO
A JOB, AND THESE ARE VALID
QUESTIONS .
YOU'RE A BONDHOLDER, YOU'D LIKE
TO KNOW HOW BAD IS THE CASH
BURDEN.
THIS KIND OF BRAVADO THAT HE
EXHIBITED, IT WORKS RIGHT UP
UNTIL THE TIME THE LAST CHECK
BOUNCES.
THESE ARE IMPORTANT CONCERNS.
IF YOU'RE AN EQUITY LD HOLDER IN
THIS COMPANY, YOU WANT TO KNOW
IS IT GOING TO BE DILUTE --
DELUDED ONCE AGAIN.
I WAS APPALLED.
>> WE FIND THE EARNINGS
VOLATILITY JUST TOO SCARY.
IN GENERAL, HIS HISTORICAL BEAT
RATE HAS BEEN 50%.
50% OF THE TIME HE MISSES, 50%
OF THE TIME HE BEATS.
AN AVERAGE COMPANY IN THE S&P
500 BEATS THREE-QUARTERS OF THE
TIME, 75%.
SO IT'S VALID FOR ANALYSTS TO
COME IN AND START GRILLING YOU
WHEN YOU HAVE SUCH A HORRIBLE
HISTORICAL BEAT RATE.
CHARLES: WHAT ABOUT THE ANALYSTS
THEMSELVES, ASIDE FROM ELON MUSK
--
[AUDIO DIFFICULTY]
GOING TO A BUY ON THIS WHICH,
OBVIOUSLY, HAD A GREAT EARNINGS
NUMB.
THE STOCK ROCKETED HIGHER.
EVERYONE ELSE IS THRILLED ABOUT
IT, BUT THIS PERSON WHO MISSED
IT STILL RELUCTANT TO GIVE IT
CREDIT.
>> THERE'S SOME OF THAT, BUT
RIGHT NOW THERE'S A LOT OF
QUANTITATIVE OVERSIGHT THAT
HELPS ANALYSTS TRY TO GET PAST
THE EGO.
A LOT OF THEM USE SOME SORT OF
MODELING UNDERNEATH IT --
CHARLES: TO KEEP THEM HONEST, SO
TO SPEAK.
>> THEY GET ATTACHED TO THEIR
BABIES.
THEY HAVE A HARD TIME CHANGING
THINGS DRAMATICALLY ALL AT ONCE
BUT, YEAH, A LOT OF THEM
GENERALLY TRY TO LOOK AT IT AS
AN UNBIASED PERSPECTIVE.
>> CONTRITION IS A BIG PART OF
IT.
YOU'VE GOT TO OWN UP TO YOUR
MISTAKES.
I'VE HEARD ANALYSTS SAY, YOU
KNOW WHAT?
I MISSED IT.
I'M NOT READY TO GO A BUY HERE.
IT HAS COME 200%.
MAYBE THAT'S NOT THE RIGHT MOVE,
BUT I'VE GOT TO TAKE MY SELL
OFF --
CHARLES: APPLE THIS WEEK, WALL
STREET WAS VERY, VERY NEGATIVE
ON IT --
>> BUT THEY SHOULD HAVE BEEN.
CHARLES: WHY?
>> BECAUSE THEY ACTUALLY MISSED
THE NUMBER ALMOST BY EIGHT
BILLION, JUST A COUPLE OF MONTHS
AGO IT WAS 68 BILLION THEY WERE
SUPPOSED TO MAKE, AND ANALYSTS
DID THE RIGHT THING.
DID THEY LOWER IT A LITTLE TOO
FAR?
CHARLES: WHAT HAPPENS WHEN
INVESTORS SELL THESE STOCKS?
>> WELL, THAT'S ON THEM.
A LOT OF THOSE GUYS THAT CUT
THOSE NUMBERS, THEY DIDN'T LOWER
THEIR RATING.
CHARLES: REAL QUICK, JOBS
NUMBERS.
WHAT NUMBER ARE YOU LOOKING FOR?
>> I WOULD SAY DEFINITELY
BEATING THE SORT OF THREE MONTH
AVERAGE, I DON'T REMEMBER
EXACTLY WHAT IT IS, BUT I LOOK
FOR ANOTHER, LIKE, IMPRESSIVE --
WE'VE JUST BEEN ROLLING --
CHARLES: MARKET LOOKING FOR GOOD
NEWS?
>> GOOD NEWS.
>> I'M HOPING WE HIT THE NUMBER,
BECAUSE IF WE GET AN OUTSIDE
NUMBER EITHER WAY, INVESTORS
WILL TRY TO FIGURE OUT A WAY TO
