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0:19 bold, bold statement. Why. >> Scott, it's for two reasons. Number one is that this bear case around them being able to compete and navigate a generative AI taken away from search, that bear case has been essentially addressed by them accelerating search from the June quarter, then again comfortably beating by 300 basis points the growth for the street in the September quarter, giving expectations that show that we're in a good place. Essentially, they're capturing all of this renewed interest that people have in finding out information and trying or tunneling that into search revenue. And the second piece is that the this gets back to why the stock is up today, is that this Gemini showing that they, in fact, have the chops to compete toe to toe from a large language model perspective against OpenAI, is encouraging for investors that the company's culture has been reignited to compete. And so what that's important is that over the next year, you're going to see more distribution.
1:21 That's what the playbook is going to change for next year around this. These chat bots keep in mind that it's only about 20% of the population uses a chatbot daily. Big opportunity. And I think there's a stand that the multiple go up. >> So why wouldn't I assume that that ChatGPT will get more distribution and pull it away from whatever. You know, you think Gemini three is going is going to deliver, and then the stock alphabet has already had an amazing run. So isn't a lot of what you're suggesting already in the stock?
1:57 >> Well, let me take the second part. First is as of right now, it's trading at 28 times the next 12 month earnings. And that's in line with the rest of I'll call it the Mag six set aside here. Trades at 170 multiple. So take that out of it. So yes it has moved up. But essentially it's that regain on that first part that we talked about. Competing in search is kind of allowed the multiple to kind of get back on par. And so I think that that is understandable. And then the second on the distribution question, if we look at what OpenAI has done such a good job, they've been great at building the brand. Of course, they are the brand when it comes to chatbots. The good job part is they're using Apple's distribution that has not worked for them to date.
2:41 They'll get another crack at that, of course, next spring when the new Siri comes out. But if you think about Google's distribution, it's just habitual. At the end of the day, there's 2.5 billion people use Google search daily, and that compares to my estimates of about 500 million daily ChatGPT users. They give a metric of 800 million weekly. >> One is one is young, one is incredibly mature. You would of course, you would expect those numbers from a search engine that's been around for forever relative to to OpenAI. The other thing is 30 times forward for alphabet must be significantly ahead of their historical average.
3:21 >> It is if you look at the historical average, it's 20 over the past five years, it's a 23 multiple. So it is measurably above that. But I wouldn't put it in the category of egregious. And I think there is I mentioned the multiple expansion, but there is upside to earnings as well. But I want to get back to this point about the old versus the new. I think that's really important. Just in terms of the brand piece to this is indeed is OpenAI.
3:45 ChatGPT is the new generation. I mean, it's it is Google is kind of has this kind of dusty kind of brand. But at the end of the day, again, Google is a habit for people. And so as they can convert and you're seeing it as they're kind of encouraging AI mode, when you you get an AI overviews with a typical search and then it gives you a, it gives you a button for AI mode. But if they start to steer some of that traffic into a pure Gemini mode, you can see them building a big $20 a month business. That's 80% of OpenAI's business today is the consumer side of