Morning Brew Daily - Berkshire Dumps More Apple Stock & Boeing’s Costly Space Test

Episode Date: May 6, 2024

Episode 316: Neal and Toby recap Berkshire Hathaway’s post-Munger shareholder meeting that had another selling of Apple stock and adds to its cash pile. Then, Boeing prepares a highly anticipated, highly scrutinized space test that will send its first astronaut team in orbit. Next, the Google antitrust case hears its closing arguments and prepares for a ruling that could change the landscape of the internet. Also, diss tracks and sleep tracks are this weekend’s winners. Meanwhile, everyone is into retro gaming and why Apple is letting it be the top downloaded app on its app store. Lastly, what’s ahead for this coming week. Visit https://www.wendys.com/morningbrew for more! 00:00 - Intro 2:30 - Berkshire offloads Apple 7:00 - Boeing enters space race 11:00 - Google on trial 14:15 - Winners of the weekend 19:30 - Emulator app on Apple 22:00 - Week ahead Per My Last Email: Spotify, Apple, YouTube or wherever you listen to podcasts Get your Morning Brew Daily Mug HERE: https://shop.morningbrew.com/products/morning-brew-daily-mug?utm_medium=youtube&utm_source=mbd&utm_campaign=mug Listen to Morning Brew Daily Here: https://link.chtbl.com/MBD Watch Morning Brew Daily Here: https://www.youtube.com/@MorningBrewDailyShow Learn more about your ad choices. Visit megaphone.fm/adchoices

Consider this comparison. PWC data found the percentage of CEOs who report revenue gains or cost reductions from AI is almost equal to the percentage who say they're still stuck. What separates these two groups? PWC points to a clarity issue. Even for CEOs, it's hard to tell what's AI hype, what's reality, and where this tuck can make a tangible difference. Learn where AI can actually make an impact and what successful adoption looks like at

pwc.com slash U.S. slash brew AI. That's pwc.com slash us slash brew AI. Good morning brew daily show. I'm Neil Fryman. And I'm Toby Howell. Today, the antitrust trial of the century has just

wrapped up is Google search in real trouble. Ben Drake and Kendrick Lamar have brought back the disc track. But what does their beef say about the current state of the music industry? It's Monday, May 6th. Let's ride. Toby, this weekend you attempted something

most normal people would never consider a 48-mile bike race on gravel. How'd it go? What are your takeaways? I was humbled. I know we have some bikers who listen to this podcast, and I tip my helmet to you guys because I thought I was in shape. I thought I had the aerobic capacity for this race, but I got wrecked.

I actually ended up, Dina not finishing the race. I had to hitchhike my way back 26 miles in. This nice man named Scott picked me up. He's a retired petroleum engineer. I learned a lot from him, actually, learned about how refineries work. I think I got a new Morning Brew Daily listen out of it. But yes, overall, the experience was incredible, but very humbling. Did you learn anything about setting goals that you didn't think you could achieve,

what's known as these big, hairy goals, which are these huge targets that, you know, potentially you may not be able to hit and just you made DNF halfway through? Yeah, I learned that there's a difference between confidence and delusion. I did not prepare for this properly. so I think I overestimated my ability. So there is a huge difference between training and preparing and then failing versus just tossing yourself over the deep end. It's much easier. And you did that.

And I did that. And it did not work. But bikers tip my helmet to you. And now let's take a moment to hear about the bundle of joy that is the Wendy's Sinabun pull apart. Neil, I'll be the first to admit. I'm a sweet treat guy. And there is no better treat than this collab between Wendy's and Sinabun. Oh, believe me.

I know. I'm not a sweet treat guy, but I'll admit it's tough to resist snagging a bite of a pull apart. You do the classic, oh, no, I'm good. I don't want anything. But then when the smell of that warm, sweet cinnamon sugar rolled dough hits your nose, you go, well, maybe I'll have a bite. Hey, it's literally called the Wendy's Cinevon pull apart. It's meant to be shared. I'm not judging.

Just maybe order your own next time, okay? If you're like Neil and always rely on your friends for your sweet treats, consider heading to Wendy's.com slash morning brew to try out the new. Cineba and Pull Apart to get a taste for yourself. It's time to refresh your yard during spring backyard days at the Home Depot. Get low prices guaranteed on propane grills starting at $179, like the next grill 3-burner gas grill. Or get $50 off a select Weber Spirit grill and bring big flavor to your backyard. Then set the scene with Hampton Bay string lights that bring it all together.

Shop spring backyard days for seven days at the Home Depot. Now through May 6th. Exclusion supplies, see Home Depot.com slash price match for details. It was ComicCon for Finance Bros this weekend in Omaha, aka Berkshire Hathaway's annual shareholders meeting. It's for people far and wide flock to hear how the portfolio of companies Warren Buffett has assembled over the years is doing, and also hear some sage words of advice from the Oracle of Omaha.

This year was more of a somber affair, as it was the first meeting in decades that Buffett did not have Charlie Munger by a side, who passed away last year at the age of 99. Buffett actually handed a question off to Charlie through sheer habit, which was a funny but bittersweet moment. Buffett also cracked a joke or two about his own mortality saying he hopes to attend next year's meeting while also reaffirming that Brookshire Hathaway's succession plans, which would see vice chair Greg Abel step into the CEO's seat, are fully in place for a smooth transition. As for the business side of things, it was kind of a weird quarter for Berkshire. The company reported a $12.7 billion profit in the quarter, which is only

about a third of last year's $35.5 billion in the same quarter. But most of that number was affected by a change in the paper value of some stock it holds. It's operating income, which is the money that the companies it owns outright like GEICO actually brings in, jumped 39% to $11.2 billion. The company is now holding a record $189 billion in cash as it waits for more tasty buying opportunities to come its way. Neil, what were some of your takeaways from another legendary Berkshire Hathaway annual meeting? Yeah, I think all of the questioning, the pondering of mortality was my big takeaway. Buffett is about to turn 94 and he didn't have Charlie Munger there. That was definitely the most poignant moment, though, when he turns to his lieutenant, Greg

Abel, who's going to take over from him and he says, Charlie and passes off the question to him, and Greg Abel's like, uh, you know, I'm not Charlie. And everyone got a good laugh about it, but it was definitely a bittersweet moment. Greg Abel was like, wow, that was the biggest honor I could have ever had anyone, you know, compare me to Charlie Munger. There was a video tribute to Munger about all his quips from over the years. So he was definitely missed. The big, the big topic was Succession. It does appear like Warren Buffett's going to hand the reins to these two guys. Adjie, Jane, and Greg Abel. Greg Abel is going to be the CEO. And the question was, are they going to be able to pick up where these two guys left off? And you know what? They may not have the same

Junice et Croix as Charlie Munger and Warren Buffett, but among shareholders who were there, who were interviewed, they were like, yeah, these guys, you know, they're very solid. They're going to grow your money. They may not have this R around them, but they are completely competent. Yeah, the succession plans, especially at Berkshire Hathaway, are just so important because the company is Warren Buffett and Charlie Munger. So then what happens in the post-Buffet and Munger era? So that's why they devoted so much time to speaking about it.

Let's also talk about this cash pile because it's, it's topping legendary standards at this point because there is a path to the cash file reaching $200 billion in this next quarter. And the reason why it keeps growing so big is that Berkshire Hathaway owns these cash flowing companies. And Warren Buffett is saying we don't see any eye-popping opportunities to deploy this cash. And also, cash is doing very fine for them right now. It's interest in other investment income hit $1.9 billion. That's coming from just parking the cash in essentially treasury bonds and just taking the yield on that. It's doing fine for them.

So combine all those factors, and that's how you get a cash pile that is only rivaled by the likes of Apple in terms of corporate America. They're making $1.9 billion in income from just putting their cash in a bank account and buying treasury bonds. That is literally the craziest thing I've ever heard, $1.9 billion. The other big topic du jour was this Apple steak that Warren Buffett has built up over many years, it's become to be their biggest stock holding. Turns out Buffett did trim his apple steak this past quarter. And he said it was nothing to do with the business. All he had was

positive things to say about Tim Cook and the way he's handled the transition from Steve Jobs. He said it was for tax purposes. But overall, if you look at Berkshire's portfolio of companies, they touch every part of the economy. They employ 400,000 people. So they're very closely watched by investors to see, hey, how's the economy doing? And those operating earnings did increase 39 So everything is pretty hunky dory overall in the U.S. economy, according to Berkshire Hathaway. The final note is Buffett did talk about AI. And what I like about Buffett is he doesn't try to explain things or understand things that he has no conception of. And when it comes to AI, like he's a pretty standard 93-year-old guy, maybe a little smarter than most.

But he's like, yeah, I really don't know the implications of AI. But he said that there's a lot of potential for scamming. and that's because he watched a video of himself, and he was like, this is super eerily realistic, and he's like, this has potential for a lot of good, a lot of bad. I see a lot of the bad as well. Yeah, he said if I was interested in investing in scamming, it's going to be a growth industry of all time.

So, yes, just speaking to the fact that this has the potential to be weaponized for harmful outcomes. After taking so many Ls on Earth the past few years, Boeing is hoping it can score a much-needed win by leaving the atmosphere behind. Tonight, Boeing is planning to launch its Starliner capsule that will ferry two NASA astronauts to the International Space Station. It's going to have that sweet new car smell. This vehicle has never carried a human crew on board before. And the stakes are as high as the altitude. For Boeing, Starliner is a chance to prove it can safely shuttle people to orbit

and calm nerves over its quality control measures. And for NASA, it's an opportunity to reduce its dependency on SpaceX and add a new model to its space taxi fleet. And you're going to be shocked, shocked when you hear that Boeing Starliner has had lots of troubles getting off the ground. It's had just two uncrewed test missions, and even those ran into issues. On one of them, the computer on board, the spacecraft was 11 hours off leading to chaos. In all, the Starliner program has been delayed for seven years and cost $1.5 billion more than expected. But finally, it appears that all systems are go for a launch tonight that will take NASA and Boeing into uncharted territory. Yeah, we have to go back before the time where the door

plug blew out, before the whistleblowers came forward, before the DOJ opened this criminal investigation into the Alaska Airlines incident. Before all that, Boeing had this Starliner program that was trying to reach space with astronauts. And it's almost like eerily the same tail of the tape, though, when you look at the setbacks that Starliners had, it landed that $4.2 billion contract from NASA, but then its onboard computer failed in the first test flight because in a very classic Boeing move, the internal clock was off by 11 hours, which caused all sorts of complications. Valves got stuck on the second flights. And then also, when Boeing finally had things up and running, they felt good about it. They realized that the installation they'd used on wires

was flammable. So it is almost, it writes itself at this point, just all the setbacks Boeing has had, in its ground in its normal airline operations, but then also in its quest to reach the International Space Station. So it almost feels like the perfect Boeing story, but hopefully everything goes correctly this time around. Boeing has really turned into a punchline, but it wasn't always. So let's go back to why this thing is happening in the first place. NASA ends the space shuttle program in 2011. It's like, okay, we need to find a new way to get people, our astronauts into space. We're not going to build it ourselves. We are going to hand this off to commercial partners.

So in 2014, they handed out $6.8 billion in contracts to two companies, Boeing and SpaceX. In the last 10 years, SpaceX has launched nine crude missions to space and four private missions. Over that time span, Boeing has launched two uncrewed test missions. So Elon has absolutely lapped the field when it comes to actually getting people in space. Boeing has been delayed for years, cost overruns, and they actually got to. got double the amount of money that SpaceX did. So from NASA's perspective, they've been relying on SpaceX for the past four years since that first mission in 2020 to get their astronauts into space.

And they're like, we need to diversify our supplier base, right? Like, what if something happens to SpaceX? Then we have no way of getting astronauts into space. So now it's very nice beneficial that Boeing has finally got their act together. We're like, maybe now Boeing can take our astronauts to space as well. It's a perfect look into the approaches of the two different companies. I mean, you have the very traditional company in Boeing that has been around for a long time, does a lot of things a very certain the Boeing way.

And then you have SpaceX who builds, who tests and crashes. They want to learn and then build again. And their development cycle is just far more rapid. And we see that in just the sheer amount of flights that it has launched. And Boeing is still trying to get off the ground here. So, yeah, tonight is going to be a big night for Boeing. we're all rooting for its sea. Let's put that out for sure. Absolutely. 1034 Cape Canaveral, 95% chance of good weather over there on the east coast of Florida, so hope it all goes well.

We'll be tuning in. The U.S. government has been throwing darts out of Monopoly Board in recent years, trying to get a case to stick against the tech giants that dominate our online lives. And before we headed out for the weekend, the first suit to really find its target, U.S. Justice Department versus Google, reached its finale and put the fate of its search business in the hands of a federal judge. The DOJ has accused Google of illegally wielding monopoly power to control the search engine business, sidelining competition, and delivering a lower quality experience to customers as a result. Google has maintained that it's just better than the other search engines out there, so that's why everyone uses it.

Most of the trial played out over a 10-week period last fall that saw both Google CEO Sundarpechei and Microsoft CEO Satya Nadella testify, but there were some still some tasty nugs that emerged in closing arguments. One I want to highlight is that court documents revealed the exact number Google pays Apple for the privilege of being Safari's

default search engine. The number is $20 billion, which happened to be 17.5% of Apple's operating income, aka it's a lot of money and good fodder for the government to point a finger out and say, does that seem fair for the competition?

Neil, after everything that's come out in this trial. And after the closing arguments on Thursday and Friday, do we think Google is a monopoly? Well, the judge himself doesn't even know. He said, I can tell you, as I sit here today, I have no idea what I'm going to do. And he acknowledged that this is the most consequential antitrust trial since Microsoft in the 1990s. And whatever he decides to do with Google will impact billions of people all over the world because of how many, how much people use Google. So this is such a huge deal. And it does all revolve around that $20 billion. number because that is something you can point to to say, Google, you have 90% of this market share

and sure, you may have done that in a, not an anti-competitive way, you might have done that in the fair way, but the fact that once you got there, you started to leverage that for these anti-competitive practices by essentially using that power to pay Google 20 or to pay Apple $20 billion to be the default search engine on Safari is a prime example of anti-competitive behavior. Google said, Look, Apple could have inked a contract with anybody. They could have gone with Microsoft Edge from Microsoft. They could have done their own browser. They could have gone with Bing.

But they chose us. Why? Because we're just better. And you can't fault us for just being better. Yeah. Google also argues that the government is defining the search engine market too narrowly. Yes, it obviously holds a very dominant position over those other names you mentioned, like the Bing's, like the Yahoo's of the world.

But when you zoom out a little bit and you think about consumers searching with intent on the internet. It's not just Google. That is the playing field. For instance, if you are looking for a product, you would go to Amazon. If you're looking to stay on an overnight biking trip, for instance, you might look at Airbnb or if you want to look at a restaurant nearby, you would go to Yelp. So Google was trying to say, let's take a more broad approach. It's not just the search engine market we're talking about. It's anybody searching for anything on the internet. When you look at it that way, we have a lot more competition. So look out for a decision in the next. weeks or months ahead. That could be hugely consequential. If he does rule against Google,

then the phase of this trial will move to what's called the remedies phase, which is basically the judge will decide what are the penalties that Google has to pay or do. And that could lead to some major shakeups in how people use the internet. Up next, you know what time it is. Neil and I pick our winners of the weekend. Not loving your AT&T or T Mobile Bill. Yeah, we've been hearing that a lot. Good news. Bring your AT&T or T Mobile Bill to Verizon and we'll give you a better deal. So get away from that unfortunate phone bill and get to Verizon. Run, ride, canoe. Whatever it takes, we'll be here.

Bring your AT&T or T mobile bill to a Verizon store today and we'll give you a better deal on the best network. A better deal. No surprises. That's Verizon. Best Network based on Route Metrics, Best Overall Mobile Network Performing with U.S. Second Half 2025. All rights reserved.

It must provide a recent consumer mobile bill in the name of the person who gave me the deal. Additional terms, conditions, and restrictions apply. You said this place was steps from the water. We just haven't found the steps yet. How much did we save? Enough. Enough to get lost. Or you could book a stay with Hilton. Welcome to your oceanfront room. Just steps from the water.

The Hilton sale is on now. Book on Hilton.com or the Hilton app and save up to 20% to get the stay you expected. When you want savings, not surprises. It matters where you stay. Hilton for the stay. Welcome back to our winners of the weekend, the segment where we highlight two things that had an even bigger weekend. Anthony Edwards. I won the pre-show Thumb War, so I get to go first. And my winner of the weekend is disc tracks, because we are in the middle of the most intense war of words in decades. Drake and Kendrick Lamar, two of the biggest names in hip-hop, spent the weekend hurling insults at each other

in a flurry of songs that had fans scrambling to decode the lyrics before the next track was released. Even Duolipa was tagged in to explain it all on Saturday Night Live. This weekend's disc track extravaganza was remarkable for a few. few reasons. First was the sheer output of production. Drake released three songs and Kendrick released three songs over a span of 36 hours. Second was the personal attacks. I mean, this got ugly with accusations of physical abuse, addiction, secret children, things that would seem to be off limits. Of course, discracks are core to hip-hop's DNA, but this year they're taken over the genre. Nikki Minaj and Megan Thee Stallion kicked off 2024 trading barbs and Drake and Kendrick

just took it to a whole new level. Toby, put on your cultural critic hat here. What do you think is going on? I read this article, this ringer article from Charles Holmes, and he basically said that we're living in this world where hip-hop is not producing megastars at the level of Drake at the level of Kendrick anymore. So now they're just starting beef over nothing, really. It's not necessarily advancing the genre. These are not sonically the most interesting pieces of work that either artist has put out. but at this point, they are probably only two artists that can command this sort of attention,

so they're just going at each other. It is interesting, too, though, because Drake is the king of the internet. He has retained this popularity because he knows how to leverage memes, knows how to leverage internet culture. Think back to Hotline Bling in 2019 where that Drake dancing meme

just took over the internet. But this time around, I think Kendrick is winning this beef because he is above the internet. He doesn't go on Instagram stories. He does not trade bar, on social media platforms, he seems above it all. And I think that has actually helped contribute to him having the leg up in this beef

because it's not a good look if you're Drake trying to post a response on Instagram stories. It's impossible to look cool. You only look cornyer if you do that. And I think that's at the heart of this beef is like who is more cornyer at this point. Obviously, there's some very serious allegations in there as well. So that's just my take on it. I think that Kendrick is winning because he is above the internet at this point. Meanwhile, this is just great for both of their royalty checks that they're collecting because people cannot get enough of this.

I mean, they're listening to all these songs very intently yesterday. I checked the Spotify top 50 and Lamar's Kendrick's Lomar's Euphoria was the number one song. And Drake's Family Matters was at number five. So they are just going to keep pushing these out because people are listening and there's a huge demand for it. Everyone's getting rich. Labels are going to get rich. Kendrick and Drake get rich. Streamers who post these reactions.

videos get rich. Ticktokers break down the whole saga and these like five to 10 minute TikTok videos are getting rich. So there's no real losers in a beef like this. Everyone seems to profit off of it. But maybe that's why. Maybe the artistry. Right. The artistry of it. That's people are saying like maybe hip hop needs to evolve a little bit and move beyond like this old guard just beefing with each other over nothing really. My winner of the weekend is insomnia because boy, do I have a sleep cure for you. It's not counting sheep. It's not pounding melatonin. and it's not listening to Jay Cole's disc track, is listening to Randy Smith,

who many consider the most boring man in the world. Randy Smith is a former motivational speaker who did most of his work in the 80s and 90s, but has recently discovered renewed popularity as people use his soothing and boring voice to fall asleep. An old tutorial he recorded in 1989 on how to use Microsoft Word was re-uploaded to YouTube with a new title,

the most boring video ever made, and now has 3.1.9. million views and over 11,000 comments from people praising him for being so perfectly monotonous that it helps them drift off to sleep. You know, it's not just Randy Smith either. There is this whole cottage industry that's arisen dedicated to satisfying the needs of a sleep-deprived nation that enjoys falling asleep to people yapping about various boring topics. Yeah, one of my favorite parts of the genre is this website that produces podcasts that recreates a baseball game, a fictional baseball game that would appear on the radio maybe a few years a few decades ago.

And they have the crowd noise, which is this white noise and this guy's doing this baseball game play by play in a very hush tone. That has become super popular for people to use to fall asleep. There's also Bob Ross videos of him kind of going on and on about his paintings. There's a loops of BBC shipping forecast. So this genre has really exploded. People are reading short stories. People are reading made-up stories.

people are reading Wikipedia entries. And so this subgenre of podcast has blown up because people aren't getting as much sleep as they used to and they want to fall asleep. Can you fall asleep to people talking? Because I cannot. Yes. You're good at that?

Oh, yeah. Put me in a lecture class in college. And I fell asleep very, very easily. I don't know if it was the setting. But if you just port me over to any one of my, you know, I won't say the class, but any one of those lectures and just play that audio, I will fall asleep in an instant. But it is very interesting to see.

how this category of music or sounds has blown up. I really hope people aren't using Morning Brew Daily, but I understand if you're the opposite. We are the opposite. That's why we crank the music up so loud so no one can fall asleep to us. If you've looked at the Apple App Store over the past few weeks,

you may have noticed an odd name sitting atop the free app charts. Delta. No, people aren't suddenly downloading the airline app in mass. Delta is a video game emulator app. It can bring back the glory days of retro games from retro consoles, but on modern technology like your iPhone. Think different iterations of childhood classic consoles like the Game Boy, Nintendo DS or NES,

and classic games like Mario Kart. It also mimics the authentic gameplay with all the buttons and other controls each game was designed for. If this feels a little illegal, you're kind of correct. Emulators are legal, but downloading copies of games is illegal. It's a bit of a gray area. To play anything on these emulators, you technically need to extract. a copy from an old cartridge of a game that you personally own. But in reality, most people are just downloading copies of games off the internet via Reddit or Google.

So if you're wondering why Apple pulled a 180 on emulators, reversing the app store's long-standing ban on them last month, there is a deeper story here. Neil, why is Apple suddenly embracing emulators? I don't know if they're embracing it. They're being forced to embrace it because on both sides of the Atlantic, we have regulators staring them down and forcing them to make changes around. the App Store, the EU just enacted this law, that requires Apple to allow third-party app stores on the iPhone. And those app stores are probably going to offer emulators. So Apple has to say, all right, well, if we don't want people going to those app stores,

then they want them to coming to the App Store in all caps, Apple's App Store, then we need to also release regular. We also need to allow emulators. And then the United States, the DOJ, it just sued Apple over its smartphone monotable. alleged smartphone monopoly. So it's making these changes in response to regulators. And I don't know if this is exactly what it wants to be doing, but it's being forced into it. It's so interesting that emulators are at the core of this big antitrust debate. Meanwhile, consumers are probably loving this because it is very fun to bust out your iPhone, have it look like an old Game Boy, play your old

Pokemon games, play your old Mario Car games. I did once download an emulator back in the day in high school where I got Super Smash Bros on my computer. I thought it was the absolute coolest thing. ever. And emulators have long been kind of relegated to the sidelines. It's more of a fringe culture. You have to go through a fair amount of steps, download some stuff that maybe you wouldn't want to download on your computer in order to play these games. But Delta has totally brought it to the mainstream. And we see that just at its position on top of the app store. People clearly, there is demand for something like this. And on top of just playing these games and allowing them to be played, this emulator boom is really important for the preservation of old video games.

They're saying this is super crucial for the. lifespan of allowing video games that came out on old consoles, old hardware, that these companies that made the games just don't even exist anymore. So these video games would be lost to history. A report last year found that 87% of classic video games released before 2010 are critically endangered. So this is actually amazing for the preservation of old video games and to keep this stuff alive because they would otherwise just be lost to history. Let's move on to our week ahead preview. Here's what you should know about this week. what to prepare for. Chinese President Xi Jinping is visiting Europe for the first time in five

years, making stops in France, Serbia and Hungary to strengthen diplomatic and economic ties. The trip comes during rising trade tensions between the EU and China. Like the U.S., the EU is very frustrated about cheap Chinese green tech products that are flooding its market and undercutting local manufacturers. Yeah, it's a lot of the same points the U.S. is trying to navigate with China, those cheap experts overproduction, but also, French President Emmanuel Macron has advocated for European autonomy. So maybe there's some daylight there for Beijing to make some headway with a key U.S. Alley saying like, hey, I know you want to separate yourself a little bit from the United States.

Here we are. Let's talk a little bit. So, yes, a lot on the line here for this first trip in five years. The Met Gala is tonight. And if you've managed to snag a $75,000 ticket to Anna Wintour's Glitzy Museum fundraiser, you'll be expected to wear an outfit inspired by a 1962 dystopian. short story, The Garden of Time. We'll see what the celebs come up with. I got nothing in my closet for that, so good luck to them. I hope we get a Teddr Swift and Travis Kelsey siding, maybe a

Caitlin Clark siding as well. The stars are definitely going to be out. All right, Apple hasn't released new iPads in 18 months, but that's going to change with an event on Tuesday morning to announce an upgraded iPad Pro and an iPad Air. These tablets could use some fresh paint. Sales plummeted 17% last quarter. I hope Apple's not counting on iPads to kind of write the here because I just don't know where it fits in in the product lineup these days. I don't know if anyone is buying iPads. This could be the last stand. If people don't like this next iteration, then we might not see the iPad going forward. I've met people who are so iPad people. Like they sit on the couch and they just know how to use an iPad. It's like, you know,

their third arm and they love the iPad. But it seems like, so it seems like it has a very core loyal user base. But for the masses, it does appear like tablets are in this messy middle. I mean, the overall tablet market, of which Apple has 40% is at its lowest sales point since 2010. So this market does need a little pick-me-up. What else is going on? Disney, Uber, and Reddit are reporting earnings. Eurovision begins on Tuesday in Sweden. And finally, a Peter Jackson restored 1970 Beatles film.

Let It Be will be released on Disney Plus on Wednesday. Get it. Get back. The Peter Jackson Beatles movie got me through. COVID. You loved that thing, so you're definitely tuning into this. So good. All right, that's all the time we have for today. Have a wonderful start to the week. And remember, Mother's Day is on Sunday. Order those flowers now.

If today's show sparked any questions or thoughts, deep or surface level, get in touch at our email, Morningbrewdaily at Morningbrew.com. Let's roll the credits. Raymond Lue is our producer. Olivia Graham is our associate producer. Yuchinawa Ogu is our technical director. Billy

Minino is on audio. Hair and makeup wants Drake and Kendrick to hug it out. Devin Emery is our chief content officer and our shows of production of Morning Brew. Great show today, Neil. Let's run it back tomorrow. Yamava Resort and Casino at San Manuel is California's number one entertainment destination for today's superstars. Catch the Jonas Brothers return to the Yamava Theater stage on April 30th, the powerful vocals of Demi Lovato on May 17th, and the signature Southern Country Rock of Eric Church on July 19th.

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