What earnings reports stuck out to you? Because it seems like almost every company that reported earnings this week did not report something that filled that SaaSpocalypse narrative.

Well, not, I mean, not all of them, but it w- I think it was probably better than expected, and I think Datadog is the one that stands out for me.

So that's ticker DDOG.

Uh, rallied over 30% on, uh, of results for Q1 that were just outstanding, much better than forecasters expected.

Revenue was up over 32% and passed a billion dollars in a quarter for the first time.

It was really impressive.

This is also a very efficient company.

Do we look back on autonomous driving as a similar step change in how we think about transportation in general?

This is a large tech pharma company that is diversified.

Yeah, it is diversified.

And, and I have to say, when you look back at this, so let's take a couple of points here from the, from the story here.

If you look at Bristol Myers Squibb, which is now, you know, if you took on the crumb Celgene, you decided, "You know what? I wanna have some Bristol Myers Squibb," I think you've been disappointed.

And just for context here, over the last three years, three of the last four years, you've had declining gross margin, you've had declining revenue, which is a little bit hard to take.

And some of that starts from back around the time of this acquisition because, I mean, it certainly has been consequential.

You know, Revlimid is obviously one of the big success stories there.

Tim Beyers, what, in your mind, is the single biggest reason this stock has been flat over the last 10 years?

So to start, can you walk us through the history of SaaS? What is SaaS? And then what, tell me about the glory days, you know, several years back.

Yeah.

So as you mentioned, I'm a senior analyst at The Motley Fool, and I've been in and around, not always as a senior analyst, but I've been in the tech markets for about 30 years now.

I started in the PR and marketing side of things.

My job used to be to Translate really complex deep tech products for things like marketing and PR campaigns.

I used to write stuff.

I've had an eclectic number of jobs in the tech industry.

allowing you to back it up, like the data holders.

So is that a good analogy for thinking about it? Or is there a big difference in this build-out versus that telecom build-out?

You would hope there's a difference.

I don't know that there's a difference.

And I think there is a genuine fight over the right economic model for...

AI, particularly any kind of commercial AI.

And I think you have two ways to fight the portal fight.

And what I mean by the portal fight is, I think we are getting to a point where the next interface for computing is likely to be a chat interface.

So, Tim, what should we take away from the potential that home values are going down? Not a lot, but at least a little bit throughout the country.

So as we look at this acquisition, the real business of what we're discussing on today's show, why does Salesforce slash Mark Benioff want to spend billions on a data management company?

Because Salesforce is better when you have data to do things with.

That's the whole point of Salesforce.

Salesforce as a customer relationship management business is you collect a bunch of data about your customers, about deals that are in the pipeline, and then you do stuff with that data that helps you do more business.

Data is at the heart of what Salesforce does.

You would like to have as much data as possible residing into or connected to Salesforce as humanly possible.

The connected to is the point that matters here for why Informatica is important.

So if you've got an idea, podcasts at fool.com, but we'll go with Tim Beyers first.

If you're holding a defensive, maybe a cyclical stock like this, if you're an investor, should you be sweating this a little bit?

I mean, I think we can fairly say that Walmart has been performing exceptionally well and has earned the premium for which it trades.

So not sweating immediately.

Having said that, I do think this is a premium valuation.

But again, let's go to the numbers.

If we look at the most recent quarter, U.S. store-level comps, so same-store sales up 4.5%.

That is extraordinary.

Tim, that part sounds a little scary to me.

For companies in your portfolio, the management teams behind them, what are you looking to hear?

Well, I'm looking to hear as much honesty and transparency as possible here.

An area that I cover where this is happening with regularity is the semiconductor market right now.

Both NVIDIA and AMD, you'll remember, Dylan, because I think we talked about this somewhat recently, they had to say, hey, look, because of export restrictions, we are not going to be able to sell some chips that were designed to sell into the Chinese market.

We thought we were going to have, I think in NVIDIA's case, it was about 1.5 billion worth of chips that they have essentially just written off.

And in the case of AMD, it's about 800 million.

So I just want clarity.

What's going on with the business?

What needs to go right for this to happen?

Global ARPU, that's average revenue per user, needs to go up as the ad tier gets successful in other territories around the globe.

They need to get footholds in other places.

Another great sign would be more content finding its way across borders.

Essentially, in order to do this, Netflix doesn't need to do new things.

That's the point I want to underscore here.

The reason I believe them They don't have to do new things.

There's a lot of open source AI types of offerings, but not really within the architecture.

Why wasn't that useful?

It's not that it isn't useful, Mary.

It's that it was sudden, and it seemed entirely designed.

It's a bit like moving the goalposts.

You may have heard this term in sports.

you know, Hey, you know what? Don't pay attention to this over here.

If I do this, I am amazing.

that I'm trying to

What happened to turn that trend around? What did they do?

It's hard to say exactly what happened here, but it does appear that Chewy is doing a lot to do more for its customers.

In tech, we hear this term a lot, but it's called wallet share.

We are getting more from our customers by doing more for our customers.

I'll talk a little bit more about this in a minute.

As a provider that you can go back to reliably over and over and over again, the evidence is that customers are relying on Chewy more and more and more.

The auto ship, for example, that has been an unqualified success.

How does Chewy balance its commitment to customer care, which their CEO is very explicit about, while also prioritizing growth and finances?

So, my question, what advice do you have for investors who are interested in quantum and itching to invest in the space? Any companies that are interesting? What's the next stock to be looking at in regards to the AI slash quantum boom? Thanks!

I'm afraid, Mike, that Jensen Wang is right, that we are a few years away.

We're probably not as far away as Jensen makes it out to be.

Having said that, he's not wrong.

It's a completely different paradigm.

There are completely different things that need to be put in place in order to seize quantum at scale.

Having said that, there are companies that are investing in this and trying to make it a bit more accessible in the nearer term.

When do you know that it's no longer too early?

Tim, are you surprised to see this one? I'm very

surprised.

I'm also mourning it a little bit, because even though I get the deal and I get the rationale for the deal, Glenn Kelman, as the CEO of Redfin, has been one of my favorite Fool CEOs really since I've been covering stocks.

I love his transparency, I love his honesty, I love his earnestness.

He's not a founder, but he acts like a founder.

And so, if Kelman is willing to make this deal happen, he must really believe in it.

And so, that gives me some confidence that there's the right thing here, even though structurally, investors...

What do you think they see here?

Tim, I feel like there's already a company that does a little bit of ad buying over streaming video.

There is.

You might have heard of it.

It's called The Trade Desk.

This feels like Boy, I don't mean to sound cynical, Dylan, but does this not sound like a money grab? I mean, this totally sounds like a money grab.

And it's not necessarily a bad thing, although we don't really know too much about the details of this.

But here's why I say it's a money grab.

And Fubo has been a thorn in their side as they've been trying to do that, Tim.