'Bloomberg Technology' Full Show (05/11/2023)
>> FROM THE HEART OF WHERE INNOVATION, MONEY AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY" WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I AM CAROLINE HYDE AT BLOOMBERG WORLD HEADQUARTERS IN NEW YORK. ED: I'M ED LUDLOW IN SAN FRANCISCO, THIS IS BRICK TECHNOLOGY -- "BLOOMBERG TECHNOLOGY". CAROLINE: DISNEY TAKES A HIT AS THAT BATTLE FOR STREAMING DOMINANCE RAGES ON. ED:
AND TEAMING UP WITH GOOGLE CLOUD TO MAXIMIZE AI USAGE. CAROLINE: MICROSOFT IS FREEZING SALARIES AS THEY LOOK TO NAVIGATE ECONOMIC UNCERTAINTY. SO MUCH MORE THIS HOUR AND THE MARKET IS TRYING TO NAVIGATE ECONOMIC UNCERTAINTY. WORRIES ABOUT THE DEBT CEILING AND ONGOING CONCERNS AROUND U.S. BANKS AND YET TECH OUTPERFORMS. SHAKING OFF THE NERVES AND THE REST OF THE MARKET, UP 15 POINTS. THERE WAS ECONOMIC DATA THAT THE JOBLESS CLAIM SHOWED WORRY IN THE JOBS MARKET, INFLATION PRESSURE DIALING BACK A LITTLE.
THE TWO YEAR YIELD COMING DOWN. DOES THIS MEAN EVER SESSION OUR ENVIRONMENT? -- A RECESSIONARY ENVIRONMENT? PAC WEST IS WHEN WE ARE LOOKING AT. THE DOLLAR IS GOING HIGHER, CRYPTO GOING LOWER. GOOD POINT TRADING AT 27,000 ON THE DAY. BUT GO INTO THE EARNINGS. ED:
THERE IS A LOT OF NEWS FLOW. PELOTON -- AT ONE POINT IT HAD A RECORD LOW. ALPHABET, PARENT OF GOOGLE, 5%.
TRADING AT A HIGH, THE MARKET LIKED WHAT IT HEARD ABOUT WHAT THEY'RE DOING IN AI. SOME OF ITS PEERS ARE A LITTLE SOFTER, BOTH DOWN AROUND .8%. DISNEY IS THE BIG MOVER. A MISS ON SUBSCRIBERS AND PROFIT IN THE CURRENT PERIOD, LOSS WILL BE WIDENING FROM THE PAST QUARTER.
THEY ARE STILL ON TRACK TO MEET THE COST REDUCTION GOAL. BUT THERE ALSO SEEING SIGNS ABOUT THE COST OF THE STREAMING. LET'S BRING IN CHRIS FROM L.A.. THE SUBSCRIBER MISTS WAS INTERESTING. IT SEEMS TO BE SHOWING THE IMPACT OF BRINGING IN AN AD SUPPORTED TWO-YEAR IN THE QUARTER -- TEAR -- TIER.
>> SOME WOULD ARGUE IT WOULD BRING IN NEW SUBSCRIBERS BUT FOR THE SECOND QUARTER THEY HAVE LOST SUBSCRIBERS. THEY RAISED THE COST OF THE AD FREE VERSION 38% SO YOU ARE SEEING SOME PEOPLE CANCEL FOR THAT REASON. AND THERE IS CONCERN, HAVE WE PEAKED IN STREAMING PENETRATION? THAT IS WORRISOME. CAROLINE: THEIR CFO TRYING TO CAST THIS AS A BLIP WHEN IT COMES TO INCREASED SPENDING FROM A MARKETING PERSPECTIVE.
WHY AREN'T INVESTORS SEEING IT AS THAT? CHRIS: THERE'S BEEN SO MUCH FOCUS IN THE LAST FEW MONTHS, LESS ON SUBSCRIBER GROWTH IN THESE COMPANIES AND MORE ON LET'S GET PROFITS. BUT IT SEEMS TO BE THE FOCUS ON BOTH AS WELL. IT IS GOING TO BE DIFFICULT, THERE WAS A LOT ON THE CALL TO PONDER, SUGGESTIONS THAT ROBERT IGER LIKES OF HULU AND WANTS TO KEEP THAT AND WHICH MEANS THEY WILL HAVE TO BUY OUT THE ONE THIRD OF HULU THAT THEY DON'T OWN. THERE'S ALSO A BIG RIGHT OFF ON CONTENT THAT THEY ARE NO LONGER PUTTING ON THE SERVICES. THERE TALKING ABOUT RAISING THE COST OF THE DISNEY PLUS SERVICE, REDUCING THE PROGRAMMING ON IT.
THERE IS A LOT OF UNCERTAINTY IN STREAMING. CAROLINE: AND THE PEOPLE WHO HAVE LEFT FROM THE STREAMING UNIT AS WELL. THE FACT THAT ALL OF THE SAME TIME THEY ARE THINKING ABOUT COSTS, THEY ARE CUTTING INTO THEIR LABOR AND THEIR TALENT POOL. A LARGE LOT OF THAT COMES FROM THE PEOPLE WHO ACTUALLY LAUNCHED DISNEY PLUS. CHRIS: AN OVERALL DISNEY IS IN THE MIDST OF EIGHT 7000 PERSON REDUCTION, HOPING TO SAVE $5.5 BILLION IN COSTS.
THIS WAS NOT THE MAXIMUM QUARTER. IT WILL BE THE CURRENT ONE. A LOT OF PEOPLE WERE LET GO. THERE WAS NOT A LOT OF DISCUSSION. THEY ARE ON PROGRESS TO MEET THOSE TARGETS BUT NOT A LOT OF DISCUSSION ABOUT HOW MUCH THEY ARE REALLY SAVING AND WE WILL -- AND WILL SEE THIS YEAR. ED: THE DISCUSSION ACROSS A
BLOOMBERG TELEVISION AND RADIO ALL MORNING IS WHETHER DISNEY IS A TECHNOLOGY COMPANY OR A MEDIA ENTERTAINMENT COMPANY. THE BRIGHT SPOT, THE PARKS BUSINESS. TECHNOLOGY COMPANY THAT OPERATES A PARKS BUSINESS. CHRIS: THEY WOULD LIKE TO THINK THEY ARE TECHNOLOGICALLY SAVVY. YOU CAN ORDER ONLINE, EVERYTHING IS THROUGH YOUR APP. YOU PAY A LITTLE EXTRA THROUGH THE APP AND YOU CAN CUT IN LINE ON THE RIDES.
BUT BASICALLY THIS IS AN EXPERIENTIAL BUSINESS AND IN THE FUTURE WE WILL BE WATCHING THINGS ONLINE. BUT IT DEPENDS ON HUMAN INTERACTION TO MAKE THOSE GREAT MOVIES AND TV SHOWS WORK. I WOULD PUT DISNEY IN THE MEDIA AND ENTERTAINMENT CATEGORY MORE THAN TECH. CAROLINE: DID THEY MENTION AI? CHRIS: THERE WAS A DISCUSSION OF THAT. I DON'T THINK THERE SEEMS TO BE AGREEMENT IN HOLLYWOOD THAT THIS IS NOT GOING TO COMPLETELY REPLACE THE SCREENWRITER.
SO WE WILL SEE HOW THAT PLAYS OUT IN NEGOTIATIONS WITH THE WRITER STRIKE. THE WRITERS WANT THAT IN WRITING. CAROLINE: THANKS FOR BRINGING IT BACK ALL THINGS HOLLYWOOD. A GREAT BREAKDOWN ON WHAT IS
HAPPENING WITH DISNEY. TALK MORE ABOUT HOW AI IS UPENDING THE WAY IN WHICH PEOPLE ARE THINKING ABOUT INVESTING IN TECH AND OTHERWISE. TO DIVE INTO THE MARKETS MORE, SYLVIA IS THE CEO AND CIO, OVERSEEING $900 MILLION IN ASSETS UNDER MANAGEMENT. SOME OF YOUR ETF'S CATERING TO
THE FOCUS ON AI. DO YOU WORRY THERE IS HIGH-PRICED IN OR ARE WE UNDERESTIMATING THE AMOUNT OF CHANGE AND VALUE THAT CAN BE FOUND? SYLVIA: GREAT TO BE HERE. I THINK THE RISE ON THE STOCK PRICE THIS YEAR IS PERHAPS ON SOME EXUBERANCE OVER AI. DON'T FORGET 2022 WAS A TECH RECESSION YEAR. A LOT OF THAT IS CATCH UP AND
THE INERTIA BEHIND THE AI BUILDOUT WILL HELP PROPEL GAINS. I THINK IT IS UNDERESTIMATED AND TECH HAS A LONG WAY TO GO. WITH THAT COMES OTHER COMPONENTS OF TECH, SEMICONDUCTOR COMPANIES. AI IS JUST BEGINNING AND IT HAS BEEN AROUND FOR A COUPLE OF DECADES BUT IS NOW COMING TO FRUITION AND COMING MONETIZE A BOWL. IF YOU THINK ABOUT WHAT AI CAN CHANGE, IT IS EVERY SECTOR. EVERYTHING FROM HEALTH CARE, ROBOTICS, SURGERY, RESEARCH, DEFENSE. BANKS.
ACCURATE CREDIT RISK, PREVENTING SVB TYPES OF CRISES. WE ARE AT THE BEGINNING OF WHAT IS GOING TO BE A MAJOR INNOVATION IN THE WAY THAT WE USE TECHNOLOGY FOR THE NEXT DECADE TO COME. CAROLINE: YESTERDAY WE HAD SCALE AI AND HE WAS SAYING THERE ARE A LOT OF AI TOURISTS, NOT MUCH BEING APPLIED IN THE MARKET NOW. ARE YOU THINKING ALONG THE HYPE OR THE REALITY SIDE ECHO -- SIDE? ED: IT IS INTERESTING, IN YOUR CASE, DEFIANCE OPERATES -- THOSE COMPANIES TAKE ADVANTAGE OF DEVELOPMENTS IN THE SHE LEARNING AND QUANTUM COMPUTING. IT IS NOT PERFORMED AS WELL AS THE NASDAQ 100, DOWN 30% LAST YEAR. WHAT WITHIN THAT BASKET HAS WORKED WELL FOR YOU AND WHAT HAS LET YOU DOWN? SYLVIA: WE LOOK AT IT DIFFERENTLY. WHAT WE TRY TO DO, THE WAY WE
TRIED TO CATER THIS PRODUCT AND BUILD IT IS TO GIVE INVESTORS ACCESS TO EVERYTHING THAT HAS TO DO WITH THE FUTURE OF TECHNOLOGY, MACHINE LEARNING AND ARTIFICIAL INTELLIGENCE. YOU HAVE TO INCLUDE THE BIG GENERALS THAT ARE PERFORMING WELL, APPLE, MICROSOFT, IBM, NVIDIA ON THE SEMICONDUCTOR SIDE. YOU ALSO HAVE TO INCLUDE SMALLER COMPANIES THAT WILL BE PART OF THE VISUAL ASPECT. THERE ARE A LOT OF THINGS THAT HAVE TO HAPPEN FOR AI TO WORK. YOU NEED TO GATHER DATA. YOU NEED TO PROCESS DATA. YOU NEED A COMPUTER THAT IS
FAST ENOUGH TO DO IT. QUANTUM COMPUTING AND THE SPEED TO PROCESS AND USE ALL OF THE DATA IS THE KEY. WE HAVE HEARD THE CRITICISMS ABOUT AI OR THE PRESENTATIONS ABOUT BAD DATA. SO WHAT PERFORMED BADLY, HIGH INTEREST RATES AND BAD GROWTH STOCKS PERFORM BADLY. BUT WHEN THIS INNOVATION STARTS TO TRANSFORM INDUSTRIES AND TAKE OFF, INTEREST RATES ARE COMING DOWN AND YOU GOT THE PERFORMANCE. THE HEDGE ARE THE TOP LEADING TECH COMPANIES THAT ARE GUIDING YOU FORWARD. ED:
DEFIANCE QUANTUM ETF UP 12%, THE NASDAQ 22%. WHAT ARE THE COMPANIES THAT EXCITE YOU MOST FROM WHAT YOU JUST OUTLINED? SYLVIA: FOR NOW, BECAUSE THE TYPE OF MARKET ENVIRONMENT WE ARE IN, I AM SENSITIVE TO THAT. I WILL GIVE YOU THE OBVIOUS ONES. MICROSOFT, GOOGLE, APPLE, AMAZON, NVIDIA. ALL OF THESE COMPANIES I NAME BECAUSE THEY HAVE BALANCE SHEETS, THEY HAVE CASH. THEY CAN INVEST IN R&D AND DO
EMANATE ACQUISITIONS AND TAKEOVER COMPANIES LIKE IN THIS A -- THE CASE OF MICROSOFT BIG INVESTMENT IN AI TO GET CHECKED GPT GOING. THEY ARE THE COMPANIES THAT ARE GOING TO BE THE PERFORMERS. THE SAFEST PLACE TO SIT. SOME OF THE SMALLER PLAYS I THINK, WE JUST HAVE NOT HEARD ABOUT FOR A LONG TIME. YOU SAW PALANTIR CRUSH EARNINGS. THESE WILL START COMING TO THE FOREFRONT. THEY EXCEED EXPECTATIONS WITH THE INNOVATIONS THEY'RE WORKING ON. CAROLINE:
ON A MACRO PERSPECTIVE, CAN THOSE NAMES OUTPERFORM EVEN IF WE SEE GROWTH CONTINUE TO SLOW DOWN, IF WE WORRY WE HIT A RECESSIONARY ENVIRONMENT? THE JURY IS OUT AS TO WHETHER TECH IS A SAFETY PLAY IN THIS ENVIRONMENT OR IS BEHOLDEN TO MACROECONOMIC ENVIRONMENTS. SYLVIA: IT IS A GREAT QUESTION. ALL OF THE MAJOR INDICES AND SECTORS AND TOP-PERFORMING -- IT FEELS LIKE AN OBVIOUS ANSWER BUT IT IS NOT. WE HAVE A SITUATION WHERE WE HAVE A FED THAT IS KEPT IN THE GAS PEDAL, RISING RATES AND SLOW DOWN GROWTH. THERE ARE FEW COMPANIES THAT
CAN TRULY WITHSTAND THAT. WE HAVE TO BELIEVE WE'RE GETTING TOWARD THE END OF THAT. IT LOOKS LIKE INFLATION IS COMING DOWN ACROSS CPI AND PPI. IF THE FED GIVES US A LITTLE RELIEF, THE COMPANIES THAT HAVE WITHSTOOD ALL OF THIS CAN START TO SPEND AND INCREASE THEIR ROLLOUT, IT WILL BE A DIFFERENT STORY.
TECH WILL LEAVE THE MARKET. THUS NEED MARKET. WE DON'T HAVE ENOUGH FACTORIES THAT CAN MEET THE SUPPLY AND DEMAND FUNCTION. WE HAD SO MANY INVENTORY ISSUES. FOR -- THE NEED FOR TECH AND THE INCREASE IN SPENDING IS GOING TO INCREASE. CAROLINE: WE TALKED ABOUT THE FED, THE CENTRAL BANK TO THE WORLD. QUANTUM HAS ORANGE, THE FRENCH COMPANY, AIRBUS. HOW MUCH ARE YOU THINKING ABOUT POSITIONING YOURSELF GLOBALLY? ARE THERE WINNERS IN ASIA THAT YOU WANT TO BE OWNING? SYLVIA: ABSOLUTELY. IT HAS BEEN VERY DISCUSSED THAT
THE U.S. IS IN A RACE TOWARD ARTIFICIAL INTELLIGENCE VERSUS CHINA. YOU WILL HAVE SOME COMPANIES LEADING THE CHARGE AND YOU ARE GOING TO HAVE COMPANIES IN THE U.S. THAT ARE CATCHING UP. BUT THE IDEA IS TO GET THIS GLOBAL EXPOSURE TO THE TOP COMPANIES THAT ARE INVESTING IN MACHINE LEARNING, AI AND QUANTUM COMPUTING. ED: THANKS TO SYLVIA JABLONSKI. COMING UP, ALL THINGS GOOGLE.
MORE ON WHAT GOOGLE ANNOUNCED THAT THE DEVELOPERS CONFERENCE WITH LIZ. AND MORE FROM GOOGLE CLOUD AND SAP ON THE EXTENDED PARTNERSHIP. THE BIGGEST JUMP SINCE THE FIRST WEEK OF FEBRUARY, THE STOCK TRADING AT ITS HIGHEST LEVEL SINCE AUGUST OF LAST YEAR. WE WENT IN SAYING THIS WAS ALL ABOUT SURGE. WHAT MOVED THE NEEDLE ON THE STOCK WAS WHAT THEY ARE DOING, INTEGRATING ON THE SOFTWARE SIDE. WORKSPACES AND A FOLDING PIXEL SMARTPHONE. THIS IS BLOOMBERG.
ED: YOU JUST WON'T SHOW IT TO THE USER. >> AND IF WE THINK A QUERY IS UNSAFE OR HARMFUL WE WILL NOT PROVIDE AN AI SNAPSHOT. ED: LIZ REED, A 20 YEAR VETERAN OF GOOGLE. WE WANTED TO KNOW WHAT RESEARCH WITH GENERATIVE AI LOOKS LIKE. THEY WENT ON STAGE AND IT BECAME CLEAR WHAT IT ACTUALLY LOOKS LIKE TO THE CONSUMER. CAROLINE: WHAT IS SO INTERESTING ABOUT THE PATH ALPHABET AND GOOGLE ARE TAKING IS A CAUTIOUS ONE. THEY'RE ALMOST ANTITHESIS TO
THE WAY MICROSOFT IS FOLDING AND WITH BEING. THEY ARE AWARE THIS CAN'T GO WRONG. THEY'RE CALLING IT A LAB. ED: THEY WILL DO A WAITLISTED SLOW ROLLOUT FOR ACCESS, TESTING INITIALLY. BUT WE ALSO SAW HOW IT RELATES TO DOCS AND SHEETS, EVERYDAY THINGS PEOPLE USE. IN THE MARKET REACTION, THEY
HAVE CHEERED IT. A SLOW ROLLOUT BUT SUBSTANTIVE EVIDENCE OF PROGRESS. SAP AND GOOGLE CLOUD JUST ANNOUNCED AN EXTENSIVE EXPANSION OF THEIR PARTNERSHIP TO MAKE ENTERPRISE DATA MORE OPEN AND VALUABLE AND TO ADVANCE ENTERPRISE AI DEVELOPMENT. I SPOKE ABOUT THAT WITH THE GOOGLE CLOUD CEO THOMAS AND CHRISTIAN CLEANER. >> IT WILL HAPPEN ON ONE PAPER WITH ONE COMMERCIAL OFFERING. YOUR SIMPLE BUYING IT. FOR US IT WAS VERY IMPORTANT
THAT IT COMES WITH AN ATTRACTIVE PRICE. THIS HAS TO BE A IWIN-WIN-WIN. WANT TO GIVE OUR CUSTOMERS MORE REASON TO GO TO SAP AND GOOGLE. BUT WE WANT TO OFFER THIS NEW SOLUTION AT AN ATTRACTIVE PRICE POINT. ED: THOMAS, HOW DOES GOOGLE CLOUD MAKE MONEY FROM THIS? THOMAS: MOST IMPORTANT LAY, I WOULD SAY WHAT IS THE VALUE CUSTOMERS GET OUT OF THIS? THEN CAN IMPROVE THEIR UNDERSTANDING OF CUSTOMER, OF THEIR END CUSTOMERS. WITHOUT THE LUXURY INDUSTRY.
CUSTOMERS CAN IMPROVE THE WAY THEY MANAGING THE--INVENTORY. WORK OUR ORGANIZATIONS HAVE DONE AT HOME DEPOT. CUSTOMERS CAN BE MORE PRECISE IN RESPONDING IF YOU'RE AN E-COMMERCE COMPANY AND YOU'RE MAKING COMMITMENTS TO DELIVER PRODUCT ON TIME AS WE HAVE DONE WITH MAKOTO LIBRE.
CUSTOMERS CAN PLAN BETTER. THE VALUE THAT WE BOTH BRING IS HELPING PEOPLE USE THE BUSINESS SYSTEMS, SAP AND GOOGLE CLOUD, THEIR DATA, AND TO TRANSFORM THE WAY THEY SERVE CUSTOMERS AND MANAGE THE BUSINESS. THAT IS WHAT DRIVES VALUE AND BRINGS CUSTOMERS TO BOTH OF US.
ED: CHRISTIAN, IN THE COMPETITIVE LANDSCAPE FOR CORPORATE APPLICATIONS, LOOK WHAT MICROSOFT HAS DONE TO MOVE EARLY AND BRING AI INTO CORPORATE APPLICATIONS. I'M THINKING ABOUT DYNAMICS 365, COPILOT. HOW MUCH OF THIS ARRANGEMENT IS YOU BEING CONSCIOUS OF THE COMPETITIVE LANDSCAPE NOW? CHRISTIAN: IN A LOT OF PARTNERS, ESPECIALLY IN AI, THEY ARE REACHING OUT TO SAP. A LOT OF COMPANIES HAVE ONE CHALLENGE TODAY. THEY ARE BUYING AI TECHNOLOGY. BUT ABOUT ADOPTION? 80% OF THE WORLDS TRANSACTIONS ARE TOUCHED BY AN SAP SYSTEM.
IF YOU ARE GOING TO EMBED MACHINE LEARNING AND GOING FORWARD, GENERATIVE AI, AND OUR PRODUCTS, YOU ARE GOING TO SEE HIGH ADOPTION AND YOU UNFOLD A LOT OF VALUE FOR THE CUSTOMERS IN THEIR BUSINESS PROCESSES. THIS IS WHY WE ARE EXCITED ABOUT AI AND THIS PARTNERSHIP. YOU ALSO NEED HIGH-QUALITY DATA TO REALLY BRING AI TO THE NEXT LEVEL. ED:
BOTH PARTIES ARE EXPRESSING CONFIDENCE THAT OPEN DATA CLOUD IS GOING TO SPUR INNOVATION IN THE FIELD OF AI. WHAT DOES THAT LOOK LIKE? THOMAS: WE BELIEVE DATA HAS A CRITICAL ASSET FOR COMPANY. BOTH SAP AND GOOGLE'S JOINT BELIEVE THAT CAN BE OPEN.
SO PEOPLE CAN USE WHATEVER TOOLS THEY WANT TO ACCESS THE DATA. SECOND, WE ARE UNLOCKING DATA AND SIMPLIFYING THE USE OF THAT DATA IN THE CONTEXT OF BUSINESS PROCESSES THAT LARGE CUSTOMERS HAVE. THE WORLD'S LARGEST AND MOST SOPHISTICATED COMPANIES IN VIRTUALLY EVERY INDUSTRY RUN SAP. MANY ARE USING GOOGLE CLOUD. THE COMBINATION IS UNLOCKING HOW AI IS APPLIED EVERYDAY. THINK ABOUT EMERGENT -- MERCHANDISING MANAGER IN E-COMMERCE, TRY TO FIGURE OUT WHAT PRODUCT MAINTAIN AND WHAT LOCATION.
THE SUPPLY CHAIN MANAGER TRYING TO FIGURE OUT WHERE DO I NEED TO PUT CAPACITY IN WHICH COUNTRY? EVERYONE OF THOSE CUSTOMERS AND MANY MORE WILL BE ABLE TO USE OUR JOINT SOLUTION TO OPEN UP HOW AI IS GOING TO HELP THEM EVERY DAY IN THEIR DAY-TO-DAY WORK. ED: ARE THERE ANY SPECIFIC VERTICALS WHERE YOU EXPECT THIS RELATIONSHIP WITH SAP TO HELP YOU DO BETTER THAN AWS AND AZURE ? THOMAS: WE HAVE STRONG PARTNERSHIPS IN MANY VERTICALS. RETAIL, HEALTH CARE, SUPPLY CHAIN AND LOGISTICS. THESE ARE DIFFERENT INDUSTRIES IN WHICH WE WORK CLOSELY WITH THE TEAM AND OUR STRATEGIC PARTNER WITH US, NOT JUST HOW WE BRING SOLUTIONS TO CUSTOMERS BUT ALSO THE ENGINEERING COLLABORATION. AND EVERY STEP AS WE LEAVE OUR OFFERINGS TOGETHER, WE THINK IT WILL BRING VALUE AND COMPETITIVE DURING THE -- DIFFERENTIATION. CAROLINE:
A BRILLIANT INTERVIEW, GOOGLE CLOUD AND SAP CEOS. ED: IT WAS INTERESTING, BETWEEN TWO BIG-NAME CEOS. MICROSOFT BUCKLING DOWN ON THE COST DURING A TIME OF MOUNTING ECONOMIC UNCERTAINTY. MORE CHANGES TO WORK NEXT. CAROLINE:
AND WE ARE WATCHING A CHINESE COMPANY, JD.COM HAVE ANNOUNCED THEIR RELATIVELY RECENT CO WILL BE RETIRING, AND LONG-TERM PRESENT AT THE BUSINESS HANDING OVER THE REINS TO A FEMALE CFO AS THE COMPANY IS STRUGGLING WITH THE FOCUS ON PROFITABILITY. SHARES SPIKING MORE THAN 3%, QUARTER SALES AND EARNINGS BEAT ANIMAL -- ANALYST ESTIMATES. IT IS A SLOWDOWN. FROM NEW YORK AND SAN FRANCISCO, THIS IS BLOOMBERG. CAROLINE: TIME FOR TALKING TECH. HORN HIGH REPORTED ITS THIRD STRAIGHT QUARTERLY PROFIT MISS. IT IS THE COMPANY THAT IS THE
MAIN ASSEMBLER FOR MOST OF APPLE SIGNATURE DEVICES. A REBOUND IN IPHONE SALES FAILED TO RESET THE SOFTWARE MARKET. SOFTBANK IS LOSING MONEY AGAIN. DIVORCE ABOUT $2 BILLION FROM MARCH AND THE INVESTMENTS IN STARTUPS, THE PRIVATE COMPANIES HAVE FALLEN ABOUT 90% DURING THE YEAR. THE FIRM'S ARMY UNIT POSTED RECORD REVENUE ON A QUARTERLY BASIS. BUT MIXED RESULTS AND TRYING TO TAKE IT PUBLIC. MICROSOFT FREEZING PAY FOR ALL FULL-TIME WORKERS FOR WHAT IT SAYS IS TO HELP NAVIGATE MACROECONOMIC UNCERTAINTY.
IT WILL CONSIDER RAISING RATES FOR HOURLY WORKERS. THE LATEST TO TIGHTEN FOR INVESTORS. ED: SHARES DOWN THE MOST SINCE CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY, I'M CAROLINE HYDE IN NEW YORK. ED: I'M ED LUDLOW IN SAN FRANCISCO. WE BETTER GET A CHECK ON THESE MARKETS WHEN WE COME TO THE TECHNOLOGY SECTOR. THE NASDAQ OUTPERFORMING, RELATIVE TO A SLIGHTLY DOWN MARKET. THERE IS UNDERPERFORMANCE IN
CHIP STOCKS. SOME NAMES GIVING UP RECENT GAINS, SOME MOVING TO THE DOWNSIDE, SOME REPOSITIONING ON WHO THE LEADING HORSE IS IN THE AI RACE. THE YIELD ON U.S. 10 YEAR SOFTWARE BY 6.5 BASIS POINTS, SEVEN, 3.37%.
BITCOIN, WE ARE GOING BACK TOWARD 27,000 U.S. DOLLARS. THAT IS THE LEVEL WE WERE OUT AT THE END OF MARCH. WE HAVE LOST MOMENTUM WHEN IT COMES TO THE BIGGEST CRYPTOCURRENCY BY MARKET CAP. IN THE EQUITY MARKET THERE IS A CLEAR MOVER TO THE DOWNSIDE, DISNEY DROPPING BY THE MOST SINCE NOVEMBER. LOOKING AT A WIDENING LOSS WHICH THE COMPANY DESCRIBES AS A BLIP. IT IS ALL STREAMING.
NO MATTER HOW MUCH WE WANTED TO TALK ABOUT PARKS AND WHETHER THIS IS A TECH COMPANY OR A MEDIA AND ENTERTAINMENT COMPANY, YOU'RE TALKING ABOUT STREAMING. CAROLINE: LET'S TALK ABOUT THE TECH ANGLE WITH RICH GREENFIELD. HE IS HERE IN NEW YORK. WE HAVE MADE IT INTO TALK ABOUT
THIS BECAUSE YOU DON'T OFTEN SEE A JUGGERNAUT LIKE THIS MOVE PERCENT ON THE DOWNSIDE. THIS IS A BUG-->> THIS IS A BIG MOVE. YOU ARE SEEING THE MEDIA SECTOR UNDER PRESSURE.
THE CORE BUSINESS OF THESE MEDIA COMPANIES ARE BROADCAST AND CABLE NETWORKS. YOU ARE SEEING THOSE NEWLY STRUGGLE. CORD CUTTING IS ACCELERATING. YOU ARE SEEING THAT FROM MAJOR PLAYERS, WHETHER THAT IS COMCAST, CHARTER, YOU'VE SEEN IT WITH DISH. JUST A REAL ACCELERATION AND CORD CUTTING. HIGH SINGLE DIGITS. COMPLETELY COMCAST HAVE DOUBLE-DIGIT DECLINES IN THEIR VIDEO SUBSCRIBER BUSINESSES.
THAT IS HAVING AN IMPACT ON COMPANIES LIKE DISNEY. SOUGHT AT PARAMOUNT WITH A HUGE MOVE TO THE DOWNSIDE, FORCING THEM TO CUT THEIR DIVIDEND. ALL OF THESE COMPANIES ARE STRUGGLING WITH WHAT IS THE FUTURE? STREAMING, THEY ARE LOSING MONEY. THEY ARE CUTTING LOSSES AS YOU JUST PROFILED WHICH IS GOOD. BUT THEIR CORE BUSINESSES ARE FACING MORE AND MORE HEADWINDS WHERE REVENUES, OBSTRUCTION AND AVID -- ADVERTISING, ARE GOING DOWN. THEIR COST STRUCTURES ARE GOING UP IN THEIR ONLY CHOICE IS TO MASSIVELY CUT COSTS.
IT IS WHAT YOU ARE SEEING ACROSS THE BOARD. CAROLINE: OR CHARGE US MORE WHEN WE GET ADDICTED TO CERTAIN -- THE OVERALL VIEW IS CHARGE YOU FOR IT OR GET GOOD ADVERTISING. RICHARD: DISNEY PLUS IS WHAT YOU ARE SAYING OUT OF WARNER BROS. DISCOVERY, BOTH COMPANIES WANTED TO BE NETFLIX. THE GOAL WAS TO TAKE ON AND BE NETFLIX, A LITTLE OF SOMETHING FOR EVERYONE. IT IS NOT JUST HBO WITH AN HBO MAX, NOW CALLED MAX.
DISNEY WAS TRYING TO BE A LITTLE EVERYTHING, ROLDAN PROGRAMMING. NURSING A CONTRACTION BACK TO WHAT THEIR CORE IS. HBO IS CENTERING BACK ON HBO. DISNEY IS SAYING WE ARE GOING TO CUT $1 BILLION AND A HALF -- $1.5 BILLION OF CONTENT ON THE
PIPELINE AND THEY ARE NOT EQUIPPED FINANCIALLY TO COMPLETE -- COMPETE ON THE LEVEL THAT LOOKS IS TRYING TO DO GLOBALLY. IT IS A BULLISH SIGN FOR ANYONE LOOKING AT THIS SPACE. YOU SHOULD BE BUYING NETFLIX. THAT IS THE TAKEAWAY. NETFLIX IS INCREASINGLY "WON." ED:
CONSOLIDATION OF PLATFORMS, THE COMBINATION OF HULU AND DISNEY PLUS, THERE SEEMS TO BE REAL VALUE IN HAVING GENERAL ENTERTAINMENT COMBINED WITH DISNEY PLUS. IF HULU IS THAT SOLUTION, WE ARE BULLISH. ARE YOU BULLISH ABOUT THAT? RICHARD: IT IS INTERESTING. A FEW MONTHS AGO, IGER WAS TALKING ABOUT HOW GENERAL ENTERTAINMENT WAS UNDIFFERENTIATED. CALLING INTO QUESTION THE FUTURE OF HULU. THEY LOOKED AT SELLING HULU. MY GUESS IS THEY CANNOT FIND A
BUYER AND THEY REALIZED THEY HAVE NO CHOICE OTHER THAN TO ABSORB IT. THEY ARE ALSO LOOKING AT DISNEY PLUS SLOWING SO THEY ARE LOOKING AT BROADENING THE CONTENT. WHAT THEY ANNOUNCED LAST NIGHT IS NOT REALLY A COMBINATION OF DISNEY PLUS AND HULU. IF YOU SUBSCRIBE TO BOTH YOU WILL SEE A HULU TILE INSIDE DISNEY PLUS. YOU WON'T EVEN GET ALL THE CONTENT ON HULU INSIDE THE DISNEY PLUS TILE.
YOU WILL HAVE TO GO TO THE HULU APP FOR ALL THE CONTENT. BUT THE KEY TRIGGER IS THIS IS A SIGN TO WALL STREET AND THE BROADER MEDIA INDUSTRY. DISNEY KNOWS THEY'RE GOING TO BE BUYING HULU. IT IS PROBABLY GOING TO COST AT A MINIMUM $9 BILLION, PROBABLY 11, 12 OR $13 BILLION TO BUY COMCAST OUT OF THEIR HULU STAKE. THAT IS ADDING TO PRESSURE ON DISNEY STOCK. AS ANOTHER FINANCIAL BURDEN
COMING OVER THE COURSE OF THE NEXT 12 OR 18 MONTHS. ED: OUR STAR WARS FANS IN THE AUDIENCE ARE GOING -- WILL NOTICE, THERE WERE IN PLATFORM AND OUT PLATFORM ADDS ABOUT THE CONTENT RELATING TO THAT MAY THE FOURTH BE WITH YOU DATE. RICHARD: ONE QUESTION FOR DISNEY, BROADER THAN THE QUESTION ON STAR WARS, AND A LOT OF CORE FRANCHISES HAVE NOT BEEN FIRING ON ALL CYLINDERS. EVEN GUARDIANS OF THE GALAXY, WELL REVIEWED, THE THIRD FILM IS DOING WORSE THAN THE SECOND. THERE ARE QUESTIONS. SOUGHT WITH BLACK PANTHER. DISNEY IS HAVING TROUBLE BOTH
IN THE LIVE-ACTION FILMMAKING WITH MAJOR FRANCHISES AS WELL AS ANIMATION. ANIMATION IS THE STORY NO ONE IS TALKING ENOUGH ABOUT. LAST NIGHT BOB IGER CONGRATULATED A COMPETITOR ON THEIR ANIMATION SUCCESS WITH SUPER MARIO. THE LIFEBLOOD OF DISNEY IS
ANIMATION. WHAT WAS THE LAST DISNEY ANIMATED MOVIE THE PEOPLE WERE EXCITED ABOUT? IT HAS BEEN YEARS AND THEY ARE GETTING BEATEN TO THE PUNCH DAY AFTER DAY BY UNIVERSAL. IT IS A PROBLEM FOR DISNEY AND IT IS WHAT IGER, HE IS SLOWING DOWN PRODUCTION, FOCUSING ON QUALITY OVER QUANTITY. IT IS THE RIGHT DECISION. THE PROBLEM IS IT IS NOT A QUICK FIX. WHEN HE CAME IN ORIGINALLY TO DISNEY THE FIRST TIME, WHAT WAS HIS QUICKFIX? BUYING PIXAR. IT TAKES YEARS TO TURN AROUND ANIMATION. AND EVEN JUST CONTENT MORE
BROADLY. DON'T CHANGE YOUR MOVIE SCHEDULE OVERNIGHT. THIS IS WHAT YOU ARE SEEING IN TERMS OF INVESTORS. THEY ARE AWARE OF THE FIX FOR DISNEY IS GOING TO TAKE TIME. ED: FANTASIA, 1940 TWO ANSWER YOUR QUESTION. ONE OF THE PROBLEMS DISNEY IS FACING IS THE WRITER STRIKE.
CAROLINE: AND COSTLY LABOR AT A TIME WHEN THEY NEED PEOPLE TO BE WRITING. HOW MUCH IS THAT -- OBVIOUSLY WE ARE SEEING PEOPLE WORRYING ABOUT THE COST OF LABOR AND TRYING TO TRIM DOWN. IS THIS SOMETHING THAT AFFECTS DISNEY IN PARTICULAR? RICHARD: ALL OF THESE COMPANIES ARE LOSING. NETFLIX IS MAKING BILLIONS,
FREE CASH FLOW. BUT THE OTHER LEGACY MEDIA COMPANIES, DISNEY, PARAMOUNT, UNIVERSAL -- THEY ARE LOSING BILLIONS ON STREAMING. ANYTHING THAT SLOWS PRODUCTION IS IN THE SHORT-TERM FINANCIALLY ON A CASH BASIS, IT IS GOOD FOR THEM. THEY WILL LOSE LESS MONEY THIS YEAR BECAUSE OF A LONG WRITER STRIKE. THAT IS ESSENTIALLY WHAT IS GOOD FOR THESE COMPANIES ON A CASH BASIS. THE PROBLEM IS A LONG WRITER
STRIKE IS GOING TO IMPACT LINEAR TELEVISION COME THE FALL. YOU MAY NOT SEE A LOT OF YOUR FAVORITE SHOWS ON AIR BECAUSE YOU NEED WRITERS FOR THESE SHOWS , FOR PEOPLE THAT ARE STILL WATCHING LINEAR TV, IT IS STILL A PRETTY BIG BUSINESS FOR THESE COMPANIES FINANCIALLY. THAT IS GOING TO HAVE AN IMPACT. IF THE STRIKE GOES ON LONG ENOUGH, SEPTEMBER, OCTOBER, YOU START TO IMPACT HOW MUCH CONTENT IS ON THESE STREAMING SERVICES. THAT COULD BE A PROBLEM FOR THE COMPANIES IN TERMS OF KEEPING SUBSCRIBERS. PEOPLE WERE FRUSTRATED WITH DISNEY LOSING SUBSCRIBERS, NOT A BIG NUMBER IN THE U.S., BUT THEY LOST SUBSCRIBERS LAST NIGHT. THAT IS SOMETHING THEY HAVE NOT
SEEN IN THE PAST. CAROLINE: THERE ARE IMMEDIATE HEADLINE GRABBING LINES FOR US TO FOCUS ON WITH DISNEY, BUT AI DID GET ITS WAY IN THERE AND FEEDS INTO THE WRITER STRIKE AND WHAT THEY'RE WORRIED ABOUT. IT'S IS AI GOING TO HELP OR HINDER DISNEY, IS IT SOMETHING WE'RE TALKING ABOUT? RICHARD: IT IS A CATEGORY THAT CAN HELP PRODUCTION. IT CAN SPEED PRODUCTION WHEN YOU THINK ABOUT WHAT YOU CAN DO WITH IT CREATIVELY. I THINK FOR MOST OF THE MEDIA INDUSTRY, AI IS A RISK IN THE SHORT-TERM, NOT BECAUSE OF PIRACY. I THINK ABOUT WHAT THE GREATEST RISK OF AI RIGHT NOW, IMAGINE THE QUALITY OF CONTENT ON YOUTUBE, TIKTOK, INSTAGRAM REELS.
THE BETTER THAT CONTENT, WE ARE IN A WAR FOR TIME. IF ALL OF A SUDDEN THE CONTENT THAT SOME RANDOM PERSON CAN CREATE ON THEIR OWN AND PUT ON TIKTOK OR CREATE THEIR OWN NEWSCASTS, WHATEVER IT MAY BE, THAT CREATES COMPETITION FOR EYEBALLS. WHEN YOU'RE TALKING ABOUT ADVERTISING, YOU ARE SEEING THE IMPACT NETFLIX ARE HAVING ON TAKING ADD DOLLARS FROM ADDITIONAL MEDIA. IMAGINE THE QUALITY OF USER GENERATED CONTENT GETTING BETTER. ED: LET'S GO BACK TO THE QUESTION OF THE DAY. IS DISNEY A TECHNOLOGY COMPANY OR A MEDIA AND ENTERTAINMENT COMPANY? >> I WOULD SAY NEITHER. THEY ARE AN IP COMPANY.
THEY ARE THE BEST AT MONETIZING IT THROUGH THE FLYWHEEL OF THE DISNEY ENGINES. THERE IP HAS NOT BEEN AS GOOD. LOOK AT WHAT HAPPENED WITH THEIR CONSUMER PRODUCTS BUSINESS LAST NIGHT. DOWN DRAMATICALLY YEAR-OVER-YEAR. THE CREATIVE ENGINES OF DISNEY, A LOT OF COMPANIES WOULD HAVE -- WOULD LOVE DISNEY'S STRUGGLES. IT IS STILL BETTER THAN A LOT OF COMPANIES. BUT RELATIVE TO WHERE DISNEY HAS BEEN OVER THE LAST FIVE YEARS, THINK ABOUT IGER'S FIRST RUN WHERE HE WENT INTO THE SUNSET WITH THIS RUN IN 2019, DISNEY IS NOT FIRING AT THAT LEVEL CREATIVELY THAT THEY WERE. THAT IS WHAT INVESTORS ARE
CONCERNED ABOUT. IN LOOKING FOR THEM TO TURN AROUND. ED: RICH GREENFIELD OF LIGHT CHECK PARTNERS, THANK YOU. CAROLINE: I AM STILL EXCITED ABOUT THE LITTLE MERMAID. CHINA INNOVATIONS IN TECH AND THE U.S., MITCHELL GREEN FROM LEAD EDGE CAPITAL IS NEXT. AND WE WANT TO KEEP AND I ON
THE BANKING WORLD, PACK WEST -- AND THE LENDER WAS IN TALKS OF POTENTIALLY -- >> AMERICA AND CHINA HAVE A LOT OF COMMON INTEREST. CLIMATE, ANTITERRORISM, GLOBAL STABILITY. AND WE HAVE DIFFERENCES. WE ARE CAPITALIST AND THEY ARE NOT. WE CAN SORT IT OUT. BUT WE NEED TO KEEP THE WESTERN ALLIANCE TOGETHER, NOT JUST AROUND WAR IN UKRAINE BUT STRATEGIC, ECONOMIC RELATIONSHIPS INCLUDING TRADE. ED: THAT WAS JPMORGAN CHASE CEO JAMIE DIMON TALKING ABOUT THE GLOBAL LANDSCAPE IN THE CONTEXT OF RISING TENSIONS BETWEEN CHINA AND THE U.S.. THIS COMES AS U.S. NATIONAL SECURITY ADVISOR JAKE SULLIVAN SAT DOWN WITH THE TOP CHINESE DIPLOMAT IN VIENNA EARLIER.
THE WHITE HOUSE IS SEEING --SEEKING TO KEEP RELATIONS FROM GETTING WORSE ACCORDING TO A U.S. OFFICIAL. TODAY'S VC SPOTLIGHT, MITCHELL GREEN, CEO OF LEAD EDGE, YOU HAVE BEEN BULLISH ON CHINA. YOU HEAR JAMIE DIMON IN THE NEWS FLOW OF THE DAY, DO YOU REMAIN BULLISH? MITCHELL: I THINK LONG-TERM WE ARE BULLISH. PREDICTING -- THANKS FOR SHUTTING ME OUT BY THE WAY. LONG-TERM WE ARE BULLISH. NEAR-TERM IT WILL BE BUMPY.
BUT WE WOULD ALSO -- I AM NOT GOING TO, AND PONTIFICATE ABOUT THE MACRO AND FORMULATIONS WITH COUNTRIES AROUND THE WORLD AS THAT IS THE LAST THING WE ARE EXPERTS ON. BUT I THINK AN OPEN DIALOGUE BETWEEN OUR COUNTRIES, I THINK IT IS IMPORTANT THAT BOTH COUNTRIES REALIZE THAT BOTH OF US NEED EACH OTHER. AND A MILITARY CONTRACT WOULD BE HORRIBLE FOR BOTH COMPANIES. S COUNTRIES. ED:
YOU WERE AND -- AND INVESTOR IN ALIBABA. I'M HEARING ABOUT NOT JUST WHETHER YOU SHOULD PUT CAPITAL INTO CHINESE STARTUPS, BUT IF YOU SHOULD TAKE MONEY FROM CHINA-BASED LPS. WHERE DO YOU SIT IN THAT DEBATE? MITCHELL: WE WOULD BE WILLING TO TAKE CAPITAL FROM -- WE DO NOT -- I THINK IT BACK. WE HAVE ONE ASIAN LP. WE WOULD TAKE ADDITIONAL CAPITAL. OUR COMPANIES, PRIMARILY NORTH
AMERICAN AND EURO BASE, WE ARE INVESTORS IN ALIBABA AND WE HAVE ONE IN BYTEDANCE AND HIM FINANCIAL. WE WANT TO HAVE OUR NEXT FUND, WE WANT TO HAVE MORE MIDDLE EAST AND LP'S. CHINESE LPS, KOREAN. THERE ARE CHALLENGES IN THESE OTHER COMPANIES -- COUNTRIES IN ASIA WITH GETTING MONEY OUT OF THE COUNTRY SO THEY NEED TO HAVE BEEN -- THEY NEED THE RIGHT STRUCTURES IN PLACE. I WOULD LOVE TO HAVE THEM. CAROLINE: WHAT ABOUT THE ECOSYSTEM IN WHICH WE BUILD IN THE U.S.
OR IN ASIA OR EUROPE? IN THE REGULATORY ELDIN BLOCKS BEING BUILT FAST ENOUGH OR WITH ENOUGH FOCUS AND KNOWLEDGE BEHIND THEM, WE THINK ABOUT CRYPTO STARTUPS BEING FRUSTRATED, AI STARTUPS, LOOKING FOR LEADERSHIP WHEN IT COMES TO GUARD RAILS IN PLACE? DO YOU FEEL WE HAVE GOT THAT SAFELY IN THE U.S. TO THRIVE IN THE STARTUP SCENE? MITCHELL: REGULATION IN CHINA HAPPENS EXTREMELY FAST. DECISIONS ARE MADE BY A SMALL GROUP OF PEOPLE AND VERY QUICKLY. THE LARGEST TECH COMPANIES IN THE UNITED STATES HOLD A LOT OF MARKET POWER AND CAN DICTATE WHICH COMPANIES FAIL AND SUCCEED AND WHAT COMPANIES PAY AND SMALL COMPANIES CAN MAKE DISTRIBUTION -- IT IS VERY TIGHT. IN TERMS OF THEIR ONLY A HANDFUL OF BIG INTERNET COMPANIES THAT ALL SAW SMALLER COMPANIES TO GET THIS TO GROW. WITH TENCENT AND ALIBABA, THIS WAS NOT LIKE A 10 YEAR DEBATE IN THE UNITED STATES. THERE IS MORE REGULATION THAT
IS NEEDED AROUND ALL OF THIS CRYPTOCURRENCY. WE ARE ON A LOT OF THESE. THEY'RE HERE TO STAY BUT I THINK THE CHINESE HAVE DONE A GOOD JOB WITH THE REGULATORY THINGS. AI IS GOING TO OPEN UP A NEW CAN OF WORMS. MY GUESS IS THEY WILL FIGURE OUT -- I JOKE CHINA IS RUN LIKE A CORPORATION. THE U.S., I WOULD INVITE YOU TO WATCH CONGRESSIONAL HEARINGS ABOUT TIKTOK AND FACEBOOK.
IT IS AMAZING. WE ARE GOING TO TAKE A WHILE FOR REGULATORY FRAMEWORKS TO COME INTO PLACE, GIVEN THE LACK OF KNOWLEDGE IN WASHINGTON. CAROLINE: DESPITE THE LACK OF AI REGULATION AS IT STANDS, ARE YOU BACKING FOUNDERS LOOKING TO BUILD IN THE ARTIFICIAL INTELLIGENCE SPACE ECHO WHAT DO YOU MAKE OF THE RATE AT WHICH COMPANIES ARE DUBBING THEMSELVES AND AI BUSINESS? >> ALL OF THESE HYPE CYCLES COME AND GO. EVERYBODY THOUGHT A FEW YEARS AGO WE WOULD HAVE SELF DRIVING CARS. I STILL DRIVE TO THE OFFICE AND I BET YOU DO AS WELL. AI IS GOING TO CHANGE THE WORLD. IF YOU CALL A DELTA AIRLINES CALL CENTER, THERE IS NO REASON YOU SHOULD SIT ON THE PHONE WITH -- FOR 45 MINUTES TO GET SOME BUDDY WHO CAN HELP. ALL OF THESE THINGS ARE GOING
TO CHANGE, IT IS JUST GOING TO TAKE LONGER THAN PEOPLE THINK. A LOT OF THESE COMPANIES ARE STILL QUITE SMALL AND WE TEND TO INVEST IN COMPANIES WITH 10 MILLION TO 200 MILLION REVENUES. BESSEMER JUST ANNOUNCED --BESSEMER VENTURE PARTNERS ANNOUNCED THEY WANT TO PUT $1 BILLION INTO STARTUPS. ED: I WANT TO ASK ABOUT VENTURE DEBT. UBER GRADING THIS MORNING THAT VENTURE DEBT HAS GONE FROM RECORD LEVELS LAST YEAR TO 2017 LEVELS IN THE FIRST QUARTER OF THIS YEAR. HOW CLOSELY DO YOU TRACK THAT?
MITRAL -- MITCHELL: YOU COULD HAVE SAID THE FIRST -- THE SAME THING -- WE HAVE LOST IN LATE MARCH GENERALLY APRIL. THE LOOK ON VALLEY BANK IS A MAJOR PROVIDER OF VENTURE DEBT. THE SHELL EXISTS BUT IT HAS BEEN ACQUIRED SO WE WILL SEE. BUT AS VENTURE FINANCING IS DOWN, VENTURE DEBT WILL ALSO BE DOWN. THESE THINGS COME IN CYCLES. FRANKLY, IF YOU LIKE INVESTING IN SOFTWARE, INTERNET, AI, GROWTH AND HEALTH CARE BUSINESSES IN 2019 AND 2020, JUST LIKE IN 2006, 2007, THE WAY HE MADE A LOT OF MONEY WAS DOING IT IN 2009, 2010. WE THINK THE NEXT COUPLE OF
YEARS WILL BE SOME OF THE BEST VINTAGES IN GROWTH EQUITY AND VENTURE. THE BEST TIME TO INVEST HIS INTERCESSION. CAROLINE: THANK YOU, MITCHELL GREEN, CEO OF LEAD EDGE CAPITAL. COMING UP, A MASSIVE RECALL OF 2 MILLION PELOTON BIKES. MORE ON THE SAFETY THREAT THEY POSE AND WHAT IT MEANS FOR THE COMPANY.
CAROLINE: WHAT IS GOING VIRAL, SHARES OF PELOTON FALLING TO THE LOWEST POINT IN ALMOST SEVEN MONTHS AFTER THE COMPANY RECALLED 2.2 MILLION BIKES DUE TO A SAFETY HAZARD WITH THE SEAT. MARK BREAKING IT DOWN FOR US. >> THANK YOU FOR HAVING ME. THIS IS THE FOURTH RECALL IN THE HISTORY OF PELOTON.
LESS SIGNIFICANT THAN THE RECALL A COUPLE OF YEARS AGO WHERE PEOPLE DIVIDE -- DIED. THIS IS AN ISSUE WITH THE SEAT POST, THE METAL PART THAT ATTACHES THE SADDLE THAT YOU SIT ON TO THE CORE FRAME OF THE BIKE. THE WELD JOINT, THAT AREA CAN BREAK OFF AND YOU CAN FALL OFF THE BIKE. THERE BEEN A FEW DOZEN CASES, IF YOU INJURIES. SOME BRUISES ARE MENTIONED.
THE MOST SIGNIFICANT IS A FRACTURED RISK. THUS REST. -- FRACTURED WRIST. THEY'RE RECALLING 2.2 MILLION UNITS IN THE U.S. AND CANADA. THERE OFFERING A REPLACEMENT PART FOR YOU TO REPLACE IT YOURSELF. BUT IF YOU HAVE AN IMPACTED BIKE, THEY ARE RECOMMENDING YOU STOP USING IT UNTIL THE FIX IS INSTALLED. ED:
AND IT DOES NOT IMPACT IN THE U.K., GERMANY OR AUSTRALIA. THAT DOES IT FOR "BLOOMBERG TECHNOLOGY". CAROLINE: DON'T FORGET ABOUT OUR PODCAST, CATCH UP ON THE TERMINAL, ONLINE ON APPLE, SPOTIFY, I HEART.
2023-05-12 15:42
