'Bloomberg Technology' Full Show (10/25/2022)
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE, IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY" WITH EMILY CHANG. CAROLINE: I AM CAROLINE HYDE IN YORK IN FORM EMILY CHANG THIS IS "BLOOMBERG TECHNOLOGY," COMING UP THE NEXT HOUR EARNINGS COME THICK AND FAST, WE DOUBT IN ON ALPHABET, THEY MISSED ESTIMATES. SEARCH, YOUTUBE, NETWORK DIVISION FALL BELOW ENDLESS DICTATIONS. THE COMPANY USES A POINT SYSTEM HELP YOU PAY RENT OR A HOME DOWN PAYMENTS ALL THE VALUATION COUPLE OVERNIGHT, WILL TALK TO THE CEO ABOUT THE UNICORN STATUS AND WHAT THEY PLAN TO DO ANY TOUGH HOUSING MARKET. IT IS THE ONLY STORY NEED TO READ ABOUT CRYPTO, MATT LEVINE HAS WRITTEN A COVER TO COVER ISSUE IN BLOOMBERG BUSINESSWEEK, THE SECOND OF ITS KIND IN HISTORY. WE WENT DELVE INTO THE MARKET IMPACT A STRONG DAY FOR TECHNOLOGY SHARES BEFORE THE CLOSING BELL.
AFTERWARDS WE ARE SEEING SOME PRESSURE, TAYLOR RIGGS RUNS TO OUR PRESSURE TELLS WE SHOULD EXPECT FOR THE MARKETS. TAYLOR: CAROLINE YOU KNOW THE STORY JUST AS WELL AS I DO. TAKE A LOOK AT AFTER HOURS, I LOVE THE CAVEAT YOU PUT IN THERE. BEFORE THE MARKET CLOSE THINGS LOOK OK, AFTER HOURS GIVEN THE MISSES THAT YOU DESCRIBED IN THE OPEN, MICROSOFT DOWN ABOUT 2%, GOOGLE DOWN ABOUT 5.6% AS WELL. SOME REAL BIG HEADWINDS A PARTICULAR WITH ALPHABET ABOUT
THE ADVERTISING BUSINESS AND THE OUTLOOK GIVEN THE WEAKER GLOBAL ECONOMIC ENVIRONMENT. WE WILL DIVE INTO ALL OF THOSE INTO THE SHOW TODAY AS WELL. CHANGE OF THE BOARD AND WILL BROADEN THIS OUT A LITTLE BIT TO SWITCH IT OFF. WHEN YOU THINK ABOUT THE IMPACT IT HAS ON THE AFTER-HOURS MARKET ON THE NASDAQ. AS YOU MENTIONED DURING THE TRADING SESSION THINGS IN -- THINGS LOOKED OK.
BIG TECH WAS THE OUTPERFORMER UP 2% ON A BANNER DAY FOR ALL THE CLASSIC RISK ASSETS. STOCKS UP TO .5%, SOME OF THE -- ABOUT CONCERNS OF CHIPS IN CHINA, A TWO-YEAR YIELD AND 10-YEAR YIELD, DROPS ABOUT 14 BASIS POINTS ON THE DAY. HELPING THOSE RISK ON ASSETS. TWITTER, WE HAVE JOKED ABOUT THIS, THERE WAS A CONTRACTUAL OBLIGATION. THERE WAS A COURT ORDERED
CLOSING ON FRIDAY, OCTOBER 28, ELON MUSK COMES OUT AND CONFIRMS HE IS WORKING WITH BANKERS TO THAT DEAL CLOSED FRIDAY. WE WILL KEEP OUR FINGERS CROSSED AND SEE IF THAT HAPPENS. CAROLINE: TAYLOR, A GREAT WRAP UP, WE THANK YOU SO MUCH AS WE PUSH TOWARDS FURTHER EARNINGS AND FUNDAMENTALS. MORE RAMIFICATIONS OF WHAT WE GOT AFTER THE BELL. HE IS A FOUNDING PARTNER OF
PRINCIPAL AND LIST OF FUTURE RESEARCH, AND MEN WHO IS AT THE CUTTING EDGE OF WHAT DIGITAL TRANSFORMATION MEANS FOR YOU AND YOUR BUSINESS. WE WILL GO WITH EITHER MARKET CAPITALIZATION OR MARKET IMPACT, OKTA IMPACT WILL BE COMING FROM ALPHABET TODAY. I'M -- MARKET IMPACT WILL BE COMING FROM ALPHABET TODAY. I AM INTERESTED, IS A MESS? GUEST: WE HAD THE OVERALL EXPECTATION OF SEEING THE AD MARKET PULLING BACK OF THE BIG CONCERNS OFFER GOOGLE AS MUCH AS THE AD SPACE. WHEN I SAID LAST QUARTER, ALPHABET IS TOP OF THE HEAT -- KEEP. THERE WILL BE THE LAST TO BE REMOVED, THE LAST TO BE SLOWED, THIS MEANS THAT THE ADVERTISING BUSINESS IS SLOWING SIGNIFICANTLY. I AM WORRIED ABOUT WHAT THIS
MEANS FROM META WE ALREADY SAW WHAT HAPPENED FOR SNAP. WITH THAT IS MY BUSINESS -- BIGGEST CONCERN. THE BUSINESS OVERALL IS ROBUST, IT IS THE BEST OF CLASS, I AM OPTIMISTIC GOING FORWARD THAT GOOGLE IS STILL GOING TO OFFER A LOT OF VALUE TO ITS SHAREHOLDERS. I WAS CONCERNED ABOUT THE SLOWING OF THE CLOUD BUSINESS THIS BY THE FACT THAT IT EAT, DID NOT KEEP UP WITH AZURE THIS QUARTER. THAT IS TO WATCH AS WELL -- AS
WELL. THEY ARE POURING MONEY INTO THIS BUSINESS, I DID ATTEND THE GOOGLE CLOUD NEXT EVENT. IT DOES SEEM THAT INVESTMENT WILL PAY OFF AS THE MARKET CONTINUES TO SPEND ON ENTERPRISE. CAROLINE: WE KNOW IN MANY WAYS THIS IS A COMPANY THAT HAS BACKED OFF FROM OTHER BETS IN LARGE PARTS BECAUSE THEY HAVE THE DOUBLE DOWN WHERE THIS PROFITABLE AT THE MOMENT. THE CFO OF ALPHABET WAS SPEAKING WITH ED LUDLOW EARLIER. SHE SAID IN TERMS OF YOUTUBE, I WOULD SAY THE LARGEST DRIVER OF THE DECELERATION WAS A FURTHER PULLBACK IN SPEND FROM SOME ADVERTISERS THAT WAS ACROSS BRAND AND DIRECT RESPONSE.
TALK TO US ABOUT WHETHER OR NOT THIS WILL BE THERE FOR WE READ INTO META. YOU TALKED ABOUT THE IMPACT OF SNAPPED, THE WORRIES ABOUT MARKETING BUDGETS GETTING SMALLER. IS THERE ANYWHERE IN TERMS OF REINVESTMENT, DOUBLING DOWN ON YOUTUBE SHORTS THAT YOU WANT TO SEE TO PROVE THAT YOUTUBE IS WHERE YOU WANT -- HAVE TO BE FOR EYEBALLS. GUEST: YOU HAVE TO STAY THE COURSE ON
STRATEGY, THE MACRO ECONOMIC CONDITIONS AT THIS MOMENT ARE WHAT THEY ARE. GOOGLE HAS THE BEST PRODUCT, THEY ARE DIVERSIFYING, THEIR INNOVATING, THE YOUTUBE STORE PRODUCT IS INTERESTING, TIKTOK HAS ACCELERATION, THAT IS WHAT YOUTUBE IS TRYING TO -- I WATCHED IBM EARNINGS LAST WEEK, THE STRENGTH OF AN -- ENTERPRISE COME THE OTHER SIDE THE CLOUD BUSINESS, THINK THAT INVESTMENT WILL BE EVEN MORE CRITICAL. COMING OUT OF PANDEMIC, THE COPIES WILL HAVE TO ADJUST THE INVESTMENT IN -- COMPANIES WILL HAVE TO ADJUST THEIR INVESTMENT IN CLOUD AND ENTERPRISE. I THINK IT IS AN OPPORTUNITY FOR GOOGLE. CAROLINE:
MICROSOFT IS BEING DRAGGED LOWER IN AFTER HOURS, THIS IS A COMPANY THAT IS STILL POSTING, MORE THAN 9% FX HEADWINDS, WHERE YOU SEE THE CONCERNS IN TERMS OF CORPORATE SPENDING, ANY? GUEST: IT SEEMS LIKE THE BIGGEST CONCERN AND WHAT DROVE THIS STOCK DOWN AFTER HOURS IS THAT IT DID I HIT IT AS YOUR NUMBER -- AZURE NUMBER. FX WAS AN ISSUE ACROSS THE BOARD AT GOOGLE. I LIKE THE FACT THAT IT WAS DIVERSE, THE COMPANY PERFORMED IN MOST CATEGORY. IN PRODUCTIVITY IT PERFORMED, THE INTELLIGENT CLOUD BUSINESS AND PERFORM, ON PERSONAL COMPUTING ON THE CONSUMER SIDE WITH SERVICE IN GAMING, AN AREA WHERE A LOT OF PEOPLE WERE CONCERNED IT CAME OUT WHERE WAS EXPECTED TO. I DID NOT FEEL AS NEGATIVELY ABOUT THE ORDER. 35% GROWTH IS STILL ABOVE -- A LOW BIT FASTER THAN THE GOOGLE CLOUD BUSINESS INDICATIVE TO ME THE ENTERPRISE IS STRONGER.
THAT IS WHY I ALLUDED TO THE IBM RESULT IT SURPRISED A LOT OF PEOPLE. IT SEEMS WHERE SPENDING WORK -- WILL CONTINUE, ADVERTISING IS DEPRESSING, CONSUMER TECH FOCUSED BRANDS WILL TURN OUT THIS QUARTER IS MY CONCERN. CAROLINE: WE ARE AWAITING WHAT IS BEING SAID IN CALLS, AND THE PRESS RELEASE AND ON THE EARNINGS HE TALKED ABOUT THE WORLD FACING INCREASING HEADWINDS AND -- DIGITAL TECHNOLOGY BEING THE ULTIMATE TAILWIND. IT IS DEFLATIONARY, HAVE WE NOT BROUGHT FORWARD ALL THAT SPENDING DURING COVID, OR IS THERE STILL MORE TO COME? GUEST: HE IS SAYING THE SAME THING, I'VE HAD A FEW MORE CONVERSATIONS, BOTH OF THEM HAVE USE THAT. I HAVE FOUND THAT TO BE THE CASE. COMPANIES DURING THIS PANDEMIC THEY HAD TO SPEND RAPIDLY TO SUPPORT GROWTH DID A LOT OF HIRING.
ADDED A LOT OF SHORT-TERM COSTS. AS LONG AS THE GROWTH WAS THERE THEY DID NOT HAVE TO FIX THAT. NOW THAT WE SEE THE MARKET COMPRESS, THE ECONOMY SLOW, SOME OF THE INVESTMENTS AND THINGS LIKE AUTOMATION AND AI NEED TO BE FULLY AMENDMENT DID -- IMPLEMENTED SO THE HIRING FREEZES AND PULLBACKS DO NOT SLOW CUSTOMER EXPERIENCE AND PRODUCT DELIVERY. I THINK THE DIGITAL INVESTMENTS WILL BE MUCH MORE ROBUST. WE SEE SOME OF THOSE HIRING FREEZES, THE LAYOFFS, SLOWING REVENUE. MARGIN COMPRESSION THE NEAR WILL BE THE CONCERN FOR TECH.
LONG-TERM IS HARD TO NOT THINK THAT MICROSOFT AND COMPANIES LIKE THAT WILL BE SOLVING ALLOW THESE PROMS FOR ENTERPRISES. CAROLINE: WHEN WE LOOK AHEAD FOR AMAZON IS THAT A FIXER FOR THIS QUARTER? WHEN WE LOOK AT META-IS THAT -- META IS THAT A HIT IN ADVERTISING SPEND? WE MOST CONCERNED ABOUT? GUEST: I AM QUITE CONCERNED ABOUT META. WITH THE BIG DOLLARS INVESTED IN THE METAVERSE PEOPLE ARE NERVOUS ABOUT THAT. YOU SEE GOOGLE ALPHABET ADVERTISING DOLLARS GOING THE WRONG WAY IN TERMS OF MARKET PERCEPTION. I THINK THEY ARE AT THE TOP OF
THE HEAP FOR ADVERTISING, LAST TO BE CUT OUT. APPLE WILL BE INTERESTING TO WATCH. APPLE TENDS TO HAVE THAT CONSUMER QUALITY THAT BUCKS SOME OF THE CONSUMER TRENDS.
PEOPLE OF HIGHER AFFLUENCE CONTINUE TO BUY AS MARKETS GET TOUGHER. THE IPHONE 14 SPECS ARE WORRYING FOR PEOPLE. I WILL SEE THAT EIGHT OF U.S. CLOUD NUMBER, THAT IS A HUGE NET -- AWS CLOUD NUMBER. THAT IS HUGE.
DESPITE THE PRIME DAYS, AMAZON HAS HAD A TOUGH QUARTER. IN THE LONG-TERM IT IS HARD TO NOT LIKE THEM. AWS HAS BEEN SO INCREMENTAL, THAT IS A BIGGEST CLOUD PROVIDER COME OF MY ENTERPRISE PIECE IS TRUE, IT SHOULD SEE AT LEAST AS BIG A GROWTH AS ASURE DID.
>> THANK YOU. COMING UP WE HAVE SOMEBODY MORE EARNINGS TO LOOK AT. LOOKING FROM MICRO TO MACRO WITH LIZ YOUNG. THIS IS BLOOMBERG. ♪ CAROLINE: AND MICROSOFT'S PRESS RELEASE IT JUST NOW SAID IT IS A WORLD FACING INCREASING HEADWINDS. RECESSION REMAINS ON THE REMINDER OF INVESTORS THIS SEASON, A RECENT LUKE ABOUT -- BLOOMBERG MODEL SUGGESTS THAT A LIKELY U.S. RECESSION IS 100% IN COMING MONTHS. LIZ YOUNG IS HERE WITH US, AS
WE GET THE MICRO DATA WITH THE EARNINGS, WHEN THEY MEET OR BEAT, ULTIMATELY IN THE BACK OF OUR MINDS, WHERE THE VALUATIONS OF BUSINESSES AND DO THEY REFLECT THE WAY WITH -- HEADLINES THEY ARE BEING HIT WITH? >> I THINK WE ARE SITTING AT A POINT IN THE YEAR WHERE WE HAVE DONE A LOT OF WORK. VALUATIONS HAVE SEEN A DECENT AMOUNT OF PAIN SINCE JANUARY. IT IS LESS ABOUT WHAT IS THE RIGHT VALUATION FOR THE STOCKS TO BE AT.
IT IS MORE ABOUT WHAT ARE PEOPLE WILLING TO PAY FOR THEM KNOWING WE HAVE NOT SOLVED ALL THE PROBLEMS OF STILL LAY AHEAD. KNOWING THAT WE STILL HAVE A PRETTY UNCERTAIN GEOPOLITICAL BACKDROP. WE ARE COMING UP ON MIDTERM ELECTIONS. WE HAVE THE CLASSIC MARKET SIGNALS AND. A RECESSION IS COMING. THOSE ARE GOING OFF.
THERE IS UNCERTAINTY AHEAD, NOT TO MENTION THE MONTH OF OCTOBER, DESPITE THIS RALLY, WE HAVE SEEN A HALF OF THE DAYS WITH A MORE THAN 2% SWING IN THE S&P 500. THAT IS A LOT OF HALL -- VOLATILITY ANDY BIGGS -- AND A VIX HOVERING AROUND 30 SAYS IT WILL BE VOLATILE. >> IF YOU SEE IN THE BOND MARKET AND THE FX MARKET, I AM INTERESTED IN THE CORRELATIONS. IN TODAY'S TRADE WE SAW STOCKS
RALLY AND TECH DO WELL BECAUSE BOND MARKETS RALLIED AND YIELDS PUSH LOWER. IS THAT THE CORRELATION WE ARE LIKELY TO SEE? GUEST: TODAY WAS VERY MUCH A RATE STORY, WE GOT SOME HOUSING DATA 9 A.M. EASTERN TIME, IF YOU LOOK AT THE TAPE AND HOW THINGS MOVED THROUGHOUT THE DAY, THE 9:00 A.M. RELEASE OF HOME PRICES COMING DOWN SHARPLY IS WHAT SENT 10 YEAR YIELDS DOWN, TWO-YEAR YIELD DOWN, EVER LET EXCITED THAT IT IS WORKING AND INFLATION WOULD GO AWAY.
STOCKS RALLIED ON THE OTHER SIDE OF THAT. YET THE LOOK OF THE FACT THAT NOT ONLY TECH START -- RALLIED, -- I WOULD NOT LIKE THAT TO BE LASTING IN AN ENVIRONMENT WHERE WE HAVE MORE THAN A 50% CHANCE OF RELATION -- RECESSION IN THE NEXT 12 MONTHS. IT WAS A SIGH OF RELIEF, WE MIGHT GET A SOLVE ON THE INFLATION PROBLEM SOONER THAN WE THINK. THE ISSUE IS ONCE THAT BOULDER STARTS ROLLING DOWN THE HILL, IT IS REALLY DIFFICULT TO STOP IT AT A CERTAIN POINT AND NOT GOING TO CONTRACTION TERRITORY. CAROLINE: TO THAT END, WITH THE MARKET MOVES BEING DICTATED BY BAD NEWS BEING GOOD NEWS, THE FEDERAL RESERVE NOT HIKING QUITE AS MUCH AS WE EXPECTED. HOW MUCH OF A DOLLAR STORY IS
THIS GOING TO BE? ARE WE AT PEAK DOLLAR? THIS IS HUGELY IMPORTANT TO MICRO STORIES, FOR EXAMPLE MICROSOFT THAT HIGHLIGHTED THE HEADWINDS OF A STRONG DOLLAR. GUEST: WE THOUGHT WE WERE AT PEAK DOLLAR, WHEN I SAY WE I SAY INVESTORS AT LARGE, A LOT OF PEOPLE THOUGHT WE WERE AT PEAK DOLLAR EARLIER THIS YEAR. I DO NOT KNOW IF THIS IS PEAK OR NOT. REGARDLESS, EVEN IT IS TECHNICALLY PEAK IT DOES NOT MEAN IT WILL NOT COME DOWN WITH A QUICKNESS. A STRONG DOLLAR IN GENERAL, AS
WE KNOW IS A HEADWIND NOT ONLY TO TRADE. IT IS A HEADWIND TO LARGE-CAP CORPORATIONS THAT HAVE A LOT OF INTERNATIONAL REVENUE. THOSE BIG COMPANIES ARE THE ONES THAT HAVE BEEN THE MARKET STORY. IF YOU ARE A NEW INVESTOR
THOUGH IS -- THOSE OTHER COMPANIES THAT BEEN A WINNER FOR YOU IN THE PORTFOLIO. IT IS DIFFICULT TO SHIFT YOUR MINDSET. I WOULD ENCOURAGE PEOPLE THAT IN AN ENVIRONMENT LIKE THIS YOU HAVE TO THINK ABOUT WHERE THE OPPORTUNITIES ARE. THEY COULD BE IN PLACES WE DO NOT NORMALLY LOOK. A STRONG DOLLAR IS GOOD FOR SMALLER CAP COMPANIES. THEY GET A MAJORITY OF THEIR
REVENUE FROM INSIDE U.S. BORDERS. THEY DO NOT HAVE THE HEADWIND. LOOKING AT THINGS LIKE THAT. BLESSING JOSÉ ABOUT A STRONG DOLLAR FROM THE MACRO EXPECT -- THE LAST THING I WILL SAY ABOUT A STRONG DOLLAR FROM THE MACRO PERSPECTIVE, WE SEE WEAKNESS THAT MEANS WE ARE ENDING A HIKING CYCLE. THE FACT THAT THE DOLLAR IS PRETTY STRONG NEEDS THAT THE FED CONTINUES TO HIKE. THEY'RE RIGHT NOW YOU HAVE A TON OF REASON NOT TO. CAROLINE:
PARTICULARLY WITH SUCH STRONG LABOR MARKET AS WE HAVE SEEN TIME AND TIME AGAIN. ON AN ANECDOTAL BASIS YOU HEAR OF STARTUPS AND BIG TECH LISTED COMPANIES DIALING BACK HEADCOUNT. LOOKING TO SLOW HIRING OR INDEED BUYER. ARE YOU -- FIRE. ARE YOU SEEING MORE CONCERN FORCED -- VOICED BY CEOS? I'M NOT HEARING IT. GUEST: IF WE LOOK AT THE LABOR MARKET IN PARTICULAR I WOULD EXPECT TO SEE WEAKNESS AND SEE IT COME THROUGH IN THE DATA WAS OR TO THE END OF THE YEAR.
THE LABOR MARKET IS WHEN THE LAST THINGS IF NOT THE LAST THING TO TURN WHEN YOU HAVE AN ECONOMIC CONTRACTION OR A SLOWDOWN. WHEN YOU THINK ABOUT THAT LOGICALLY THERE IS A REASON WE DO NOT HEAR ABOUT IT FROM CEOS. THEY WILL DO EVERYTHING ELSE THEY CAN TO CONTROL COSTS FOR THEY HAVE TO LAY PEOPLE OFF AND CUT JOBS. WE ARE HEARING RIGHT NOW IS A LOT OF HIRING FREEZES, THAT COMING THROUGH THE DATA. IF YOU LOOK AT THE JOB OPENINGS
OR THE JOLTS NUMBER WE GOT IN AUGUST, JOB OPENINGS CAME DOWN BY 1.1 MILLION THAT IS A HUGE DROP. THE RATIO OF THE NUMBER OF JOBS OPEN PER UNEMPLOYED WORKERS NOW 1.7. THAT IS DOWN FROM 2. WE USED TO HAVE TWO JOBS ARE EVERY UNEMPLOYED PERSON, PRE-PANDEMIC THAT NUMBER WAS 1.2 . THAT GAP HAS THE NARROW A BIT. WHEN THE GAP NARROWS WE ARE IN A COMFORTABLE SUPPLY DEMAND PLACE WITH LABOR, THAT IS WHEN IF WE HAVE NOT SLOW THE BLEEDING YOUR ABOUT LAYOFFS. WE SAW HAVE SOME TIME NOW AND THAT POINT.
I DO EXPECT IT TO START COMING THROUGH IN THE LABOR DATA, SEASON WEAKNESS BY THE END OF THIS YEAR. CAROLINE: ULTIMATELY, LIZ, TALKING ABOUT PITY PERCENT OF RECESSION, -- 50% OF RECESSION, THE LACK OF CLARITY, IS A TIME TO REINVEST TURKEY POWDER DRY FOR NOW? >> YOU CAN THINK ABOUT REINVESTING, NO ONE WILL CALL THE BOTTOM, IF YOU DO WE ARE LUCKY. YOU ARE AT A DATE WITH S&P DOWN TO 20 TO 22% YEAR TO DATE.
THAT WAS BETTER THAN JANUARY. WHAT IS A SHOPPING LIST? WHAT ARE THE SECTORS AND INDUSTRY GROUPS YOU WOULD BE INTERESTED IN BUYING AND TRIP AND SLOWLY. IN THIS ENVIRONMENT I BE LOOKING UP FINANCIALS. THEY ARE ATTRACTIVELY PRICED COMPARED TO OTHER SECTORS.
THEY DO NOT HAVE A TON OF PAIN AHEAD, IN MY OPINION. THEY HAVE BEEN PRETTY PUNISHED THROUGH THE CYCLE AND THEY WILL COME OUT WELL ON THE OTHER SIDE. I WOULD BE LOOKING AT INDUSTRIALS. I HAVE BEEN TALKING ABOUT HEALTH CARE FOR A LONG TIME. I THINK HEALTH CARE IS A GREAT LONG-TERM INVESTMENT. A LITTLE BIT FURTHER DOUBT, I THINK THIS RALLY IS FRAGILE.
-- A LITTLE BIT FURTHER DOWN, I THINK THE RALLY IS FRAGILE, EXPECT A CORRECTION. YOU GET THE S&P DOWN THE PREVIOUS LEVELS, THAT IS WHEN YOU START TO NIBBLE ON RISKIER THINGS. LOOK AT SEMICONDUCTORS, TECH AGAIN, AND OTHER THINGS THAT MIGHT BE A LITTLE BIT MORE HIGH BETA. AFTER THE ECONOMY HAS A CONFIRMED IT IS WEAKENED, WHEN THE LABOR MARKET FALLS ABOUT -- APART COME YOU LOOK AT HOME BUILDERS AND GET BACK IN ON THAT TRAIN AND LOOK AT THE SMALL-CAP ENVIRONMENT. CAROLINE: A GREAT CONVERSATION TO COME IN TERMS OF YOUR EXPOSURE TO THE REAL ESTATE MARKET. ALWAYS SO SMART TO HELP YOUR
CONVERSATION DOVETAIL WITH OUR AUDIENCES INTERESTED IN DEBT, LIZ YOUNG, SOFI HEAD OF INVESTMENT STRATEGY. AMAZON EXPANDING PAYMENT OPTIONS INCLUDING VENMO. WE WE TALK ABOUT STRATEGY AND DICTATIONS. THIS IS BLOOMBERG. CAROLINE: THERE WAS ANOTHER KEY STORY THAT OCCURRED TODAY. AMAZON ADDING VENMO AT LAST IS A PAYMENT OPTION FOR CUSTOMERS AT A BLACK FRIDAY IN THE KEY HOLIDAY SEASON. HE IS HERE IN YOUR, HE COVERS AMAZON FOR US, WONDERFUL TO HAVE YOU IN THE SAME STUDIO.
SPENCER, TALK TO US, THIS HAS BEEN IN THE WORKS FOR A YEAR. GUEST: THE VENMO AMAZON TIE UP HAS BEEN IN THE WORKS FOR QUITE SOME TIME. VENMO IN PARTICULAR, PAY PAUL -- PAYPAL HAS WANTED TO MOVE THIS PEER-TO-PEER PAYMENT SYSTEM. WE BOUGHT A PIZZA YOU WILL PAY ME $10, GOING BEYOND SPLITTING BILLS, TO SOMETHING THEY CAN MAKE MONEY OFF OF, COMMERCE, BUYING THINGS. THIS IS A VERY BIG DEAL FOR PAYPAL AND VENMO IN TERMS OF NUDGING THAT ALONG. THEY HAVE BEEN WORKING ON IT FOR A LONG TIME.
YOU MACY'S -- MAY SEE IT USED BY A MISSILE -- NELSON LAWN OR LANDSCAPE OR. YOU DO NOT -- LANDSCAPER. THIS IS A SYMBOL, AMAZON IS WILLING TO DO IT, WHEN I YOU? IT LOWERS THE COST -- WHY NOT YOU? IT LOWERS THE COST. WHEN THEY NEGOTIATE WITH CARS COME HOW TO THE TRANSACTION THEY HAVE OF THEM. CAROLINE:
I AM INTERESTED, HEAD OF THE HOLIDAY SEASON, HOW MANY PEOPLE DO THEY THINK WILL BE USING THIS VERSUS BUY NOW, PAY LATER THAT THEY HAVE WITH A FIRM OR A COULD OCCUR THEY HAVE ON TAP? GUEST: I THINK THAT WILL TRADITIONALLY BE THE PREDOMINANT WAY TO PAY, THE CREDIT CARD THAT THEY HAVE. THAT IS A PROBLEM HERE, VENMO HAS A LOT OF INCENTIVE TO MAKE THIS WORK. AMAZON HAS A LOT OF INCENTIVE TO MAKE THIS WORK. CUSTOMERS DO NOT HAVE MUCH INCENTIVE TO USE IT. HOW WILL THEY COMPEL PEOPLE TO
BREAK THOSE HABITS AND START USING VENMO TO PAY FOR THINGS? IT HAS BEEN A LONG GAME FOR VENMO, THEY DO NOT DISCLOSE HOW MUCH. THEY HAVE BILLIONS OF DOLLARS SLOSHING AROUND IN VENMO, IT IS STILL MOSTLY THINGS THEY DO NOT MAKE MONEY ON, PEOPLE PAYING BACK ONE ANOTHER FOR THESE NICKEL AND DIME THINGS. THE QUESTION IS WILL THEY GET PEOPLE TO USE VENMO THE WAY THEY MAKE -- THE WAY THEY USE THEIR CREDIT CARDS? CAROLINE: WE WILL SEE WHAT INCENTIVES THEY GIVE US, HE WILL BE A BUSY GUY, AMAZON HAS THEIR NUMBERS COMING OUT LATER ON THIS WEEK. COMING UP, PAYING FOR YOUR
PIZZA OR YOUR NAILS, WHAT ABOUT PAYING FOR YOUR RENT WITH POINTS? ANOTHER NEW WAY WE THINK OF REWARDING, A NEW START UP, THE CEO HAS A HUGE FUNDING ROUND WE WILL START WITH THE -- DISCUSSING NEW VALUATION AND WHERE THIS GOES. CAROLINE: THIS IS "BLOOMBERG TECHNOLOGY," I AM CAROLINE HYDE IN NEW YORK. THIS TALK TO ANOTHER NEW YORK STARTUP.
BILT REWARDS CONVINCE RENT PAYMENTS AND THE POINTS, THE VALUATION HAS QUADRUPLED, $1.5 BILLION, WE WANT TO KNOW HOW THEY WOULD USE THE FUND. GROWTH TRAJECTORY, WHO BETTER TO TALK THROUGH IT ALL COULD, THE CEO. GREAT TO HAVE YOU HERE. WHAT IS THE GROWTH -- TRAJECTORY COME HOW CAN YOU PENETRATE THE MARKET AND PET -- AND DISRUPT FINANCIAL INSTITUTIONS? GUEST: TODAY MORE THAN EVER RENT PRICES CONTINUE TO SOAR, ONE OF THE THINGS BANKS AND STARTUPS MISS, ON THE ONE HAND START OF THE TRAINER -- TRYING TO HAWK CRYPTOCURRENCY TO PEOPLE. THE BIGGEST EXPENSE IS, WHY DO NOT GET ANYTHING BACK FOR THAT? WHY CANNOT I BUILD MY CREDIT HISTORY FOR PAYING MY RENT ON TIME? WHY CANNOT EARN POINTS TO TRAVEL THE WORLD BY PAYING MY RENT? IT TOOK US 4 YEARS TO BUILD -- TO BRING TOGETHER THE INDUSTRY, THE PAYMENTS, THE BANKS, AIRLINES, THE HOTELS, WHEN WE LAUNCH AS WE WERE NOT SURE HOW FAST THIS WOULD PICK UP.
WHAT WAS CRAZY TO SEE, LESS THAN 14 MONTHS WE HAVE HAD OVER $3 BILLION OF PAYMENTS GOING THROUGH THIS ON THE RENT ASIDE. PEOPLE SIGNING UP FOR THE BILT MASTERCARD, CAN REPLACE YOUR EVERYDAY CARD HAS SEEN $1.6 BILLION ARE SPENT ALREADY. YOU SEE THIS MASSIVE UPTAKE OF A GENERATION THAT SAYS, RENT IS MIGHT BIGGEST EXPENSE, IF YOU GIVE MY -- ME VALUE THERE I WILL BE LOYAL TO YOU ACROSS MY OTHER SPEND CATEGORIES.
IF YOU CAN HELP ME BUILD A PATH TOWARDS HOMEOWNERSHIP THAT IS YOU LOCK ME IN. CAROLINE: TALK TO ME ABOUT THAT PATH, IT IS ABOUT BUILDING UP YOUR CREDIT QUALITY, HOW ELSE? >> ONE OF MY CHALLENGES IS HOMEOWNERSHIP, I JUST BOUGHT MY PLACE HERE. CAROLINE: CONGRATULATIONS. >> IT WAS SO COMPLICATED, I CONSIDER MYSELF A FINANCIALLY ASTUTE INDIVIDUAL.
I SAID I WOULD SPAIN -- PAY $6,000 A MONTH. THE AVERAGE NEW YORK RENT TO $6,000 A MONTH. IT IS TIME YOU EARN POINTS AND MILES ON IT. HOW DO I COMPARE THE? -- THAT? NOTHING EXITS, WE PARTNERED WITH FANNIE MAE, FREDDIE MAC, FHA, YOU COULD SEE BASED ON YOUR PROFILE, YOUR INCOME, REAL-TIME INTEREST RATES HERE IS HOMES YOU COULD BUY FOR THE SAME MONTHLY PAYMENT AS YOUR RENT.
COMPARE APPLES TO APPLES, IF YOU HAVE -- IF YOU ARE READY TO BUY WE HAVE REGULATORY APPROVAL TO USE YOUR POINTS TO COVER YOUR EMPLOYMENT -- DOWN PAYMENT. THAT WENT LIVE THIS MORNING. CAROLINE: YOU ARE TALKING POINTS, REWARDS, GEN Z, MILLENNIALS. I CAN ONLY INFER THAT AMEX IS LOOKING AT YOU, WHO ARE YOU IN TERMS OF DEMOGRAPHICS? GUEST: A VAST MAJORITY OF OUR CARDHOLDERS AND LOYALTY MEASURES ARE 21 TO 35, IF YOU LIVE IN A HIGH-RISE BUILDING ANY MAJOR CITY, NEW YORK, L.A., SAN FRANCISCO, DENVER, YOU ARE LIVING IN A BILT ALLIANCE PROPERTY. YOU CAN USE IT TO PAY YOUR RENT AND ALL THESE BUILDINGS. YOU HAVE OTHER 25-YEAR-OLDS WHO WOULD LIVE IN OTHER BUILDINGS, MOM-AND-POP LANDLORDS, SIGNING UP FOR THE BILT MASTERCARD EARNING POINTS WITH NO ANNUAL FEE. CAROLINE: WHAT IS IT ABOUT?
HIRING, BUILDING PARTNERSHIPS, WHAT YOU LOOK AT IN TERMS OF YOUR TO DO LIST? GUEST: ONE OF THE THINGS WE SPENT A LOT TIME IN THIS BUSINESS, IS PROFITABILITY. BILT IS A PROFITABLE BUSINESS. WHEN WE WERE LOOKING TO GROW THE BUSINESS WE WERE NOT LOOKING TO RAISE MONEY, WERE NOT LOOKING TO GROW THE BUSINESS. AN OLD FRIEND OF MINE REACHED OUT TO US THAT IT WAS AN OPPORTUNITY TO READ TOGETHER STRATEGIC PART -- BRING TOGETHER STRATEGIC PARTNERS IN THIS BUSINESS IF WE DO FINANCING. WE HAVE COMPANIES LIKE GRAY STAR, INVITATION HOMES, AND EVEN OUR BANKING PARTNERS LIKE WELLS FARGO'S TO DOUBLE DOWN AND BUILD THE DEFENSIBLE MOAT AROUND THE BUSINESS. CAROLINE: IN THIS LANDSCAPE, VALUATIONS ARE COMING DOWN, PEOPLE ARE NOT WRITING CHECKS OF SAME LIBERAL MANNER THEY WERE.
IS THIS ABOUT STRATEGIC INVESTORS, AT ABOUT A VALUATION THAT WAS LOWER THAN ANTICIPATED? GUEST: I DO NOT BELIEVE IN PLAYING THE VALUATION GAME. INEVITABLY ALL THESE THINGS COME TO AN END. AS WE DID THIS ROUND WE LOOKED AT FAIRLY CONSERVATIVE PUBLICLY TRADED COMPETITION, THAT IS HERESY TO SAY IN SILICON VALLEY. CAROLINE:
WHO IS COMPETITION FOR YOU? GUEST: IT IS NOT THAT DIFFERENT FROM MASTERCARD OR VISA COME IF WE TAKE A PIECE OF TRANSACTIONS NUMBER RENT OR DINING AND WE START TO CLIP THAT ON ALL THE BIGGEST EXPENSES WHILE REWARDING THE CUSTOMERS IT IS NOT THAT DIFFERENT FROM A PAYMENT NETWORK. THAT IS HOW WE BILT THE VALUATION AND HOW WE BILT THE BUSINESS. TODAY ENTREPRENEUR SHOULD BE FOCUSED ON TEACHING TO CAPITAL. WE WERE LUCKY TO GET THAT LEFT LANE CAPITAL, ALSO FROM OUR REAL ESTATE PARTNERS IN BANKING OWNERS THEY GET TO WORK WITH US ON THE PAYMENT SIDE AND INVESTMENT SIDE. CAROLINE:
I AM LOOKING AT VISA, THE ESTIMATED P/E RATIO 23 TIMES, TRADING 29 TIMES IN THE HERE AND NOW. THEY ARE A COMPANY THAT JUST HAD THEIR EARNINGS AND THEIR -- THEY ARE RAISING DIVIDENDS, GIVING MORE BACK TO INVESTORS. THEY SAY THE ECONOMY IS STRONG. WHAT DOES THE ENVIRONMENT LOOK LIKE? GUEST: ONE OF THE EXCITING THINGS ONLY THINK ABOUT THIS TYPE OF BUSINESS IT IS COUNTERCYCLICAL TO RECESSION.
AND GOOD TIME TO SEE A LOT OF SPEND ON RETAIL AND TRAVEL THAT WE SEE ON THE BILT MASTERCARD. IN A DOWNTURN, RENT IS A EXPENSE BECAUSE PEOPLE HAVE TO PAY MONTH OVER MONTH. IF YOU CAN MAKE THAT A BETTER PAYMENT EXPERIENCE AND REWARD THEM, OUR BUSINESS STAYS FAIRLY RECESSION PROOF AS CONSUMERS CHANGE SPENDING HABITS ELSEWHERE. CAROLINE: WHAT ABOUT HIRING? GUEST: WE ARE A NEW YORK OFFICE, WE ARE WELL THOSE CRAZY COMPANIES THAT BELIEVES IN A IN PERSON OFFICE, OUR TEAMS HAVE BEEN COVERING -- COMING IN SINCE IT WAS ALLOWED 2021. WE CONTINUE TO HAVE OAKS COME IN. THAT -- FOLKS COME IN.
THAT HAS BEEN A BEST RECRUITING TOOL, TELLING PEOPLE WE ARE AN IN PERSON CULTURE, YOU CAN WORK WITH REALLY SMART PEOPLE TO SOLVE REAL PROBLEMS THAT AFFECT OUR OWN EMPLOYEE BASE AND OUR FRIENDS. CAROLINE: ARE THERE ANY HYBRID? GUEST: I THINK IS IMPORTANT IN TODAY'S ECONOMY AS A CEO TO BE CLEAR WHERE YOU STAND. IT IS AMBIGUITY THAT FEELS HARD, YOU, BUT NO ONE ELSE, WE MAKE IT VERY SIMPLE, WE ARE AN IN PERSON COMPANY.
IF YOU NEED TO TAKE TIME AND BE FIVE CIVIL WE ARE OK WITH THAT. THE PRODUCTIVITY, THE MORALE, WE HAVE HAD NO TURNOVER REALLY IN THE LAST OR 10 MONTHS SINCE WE HAVE LAUNCHED A PRODUCT -- 14 MONTHS SINCE WE LAUNCHED THE PRODUCT. THAT IS A TESTAMENT TO THE RELATIONSHIPS AND WORKING ON PROBLEMS THAT MATTER TO SOCIETY. WHAT I'M EXCITED ABOUT TODAY IS THE BILT HOME STUFF. IF WE CAN HELP YOUNG PEOPLE TO UNDERSTAND WHAT IT TAKES TO GO FROM RENTING TO HOMEOWNERSHIP AND MAKE IT AS EASY TO UNDERSTAND THAT THIS IS WHAT YOU PAY IN RENT, THIS WAY YOU CAN BUY FOR THAT SAME AROUND, -- AMOUNT, YOU CAN USE YOUR POINTS OCCUR THAT DOWN PAYMENT. THAT WILL BE THE MOST IMPORTANT DRIVER TO FIXING AND IN OUR GENERATION, THE SMALL HANDFUL THAT CAN BUY HOMES AND BUILD WEALTH, EVERYONE ELSE BE LEFT BEHIND PAYCHECK-TO-PAYCHECK.
IF WE CAN HELP MOVE THE NEEDLE A LITTLE BIT ON THAT IT IS REALLY MOTIVATING OPPORTUNITY. CAROLINE: FINANCIAL KNOWLEDGE, FINANCIAL EMPOWERMENT, WE ARE SURE ABOUT IT, WE COULD TALK ABOUT ALL DAY EVERYDAY. BILT CEO, TALK ABOUT WHAT I AM PASSIONATE ABOUT, MEANWHILE, THE STORY OF CRYPTO, WHERE DID IT COME FROM, HOW DOES IT WORK, IS IT A SCAM? WHERE WILL IT TAKE US? WE WILL DISCUSS IN THE LATEST ISSUE OF BLOOMBERG BUSINESSWEEK, TOTALLY AND UTTERLY DEDICATED TO THIS QUESTION. THIS IS BLOOMBERG.
>> HI, I AM OUTLIVING, FORMER LAWYER AND INVESTMENT BANKER, I AM A COLUMNIST FROM BLOOMBERG OPINION. FOR THE PAST TWO YEARS AND MOST POLARIZING THING IN FINANCE HAS BEEN CRYPTO. IT GREW OUT OF CITO SHE -- NOT KOMODO -- SOME PEOPLE BOUGHT LAMBORGHINIS. THIS YEAR THOSE LINES ON CHARTS.
WENT DOWN. . IF YOU ARE A. CRYPTO SKEPTIC THIS IS SATISFYING. CRYPTO ENTHUSIAST, IT WAS ANOTHER REASON TO DOUBLE DOWN. I DO NOT HAVE STRONG FEELINGS EITHER WAY ABOUT THE VALUE OF CRYPTO I LIKE FINANCE I THINK IT IS INTERESTING.
I FEEL LIKE UNDERSTANDING THE STRUCTURES PEOPLE BUILD TO ORGANIZE ECONOMIC REALITY, CRYPTO IS AMAZING. BLOOMBERG BUSINESSWEEK ASKED ME TO WRITE ABOUT CRYPTO, WHEN I WAS FINISHED IT WAS ENOUGH TO FILL AN ENTIRE ISSUE COVER TO COVER. IT IS CALLED THE CRYPTO STORY. I THINK IT IS THRILLING TO READ AS A RIDE IN A LAMBORGHINI. CAROLINE: BLOOMBERG A PREGNANT COLUMNIST -- OPINION COLUMNIST WHO COVERS FINANCE, THE SECOND TIME IN THE MAGAZINE HISTORY THAT ONE SINGLE AUTHOR HAS DONE THAT.
IN TODAY'S REPORT WE WILL LOOK AT THAT STORY, WHERE COMES FROM, WHAT IT MEANS, WHY IT STILL MATTERS. NUMBER BUSINESSWEEK'S PAT. IT TAKES TWO TO TANGO. YOU HAD TO EDIT THE ENTIRE THING, A LABOR OF LOVE FOR THE PERSON WHO WROTE IT. TELLS ABOUT THIS ESSAY, AND WITH THE KEY TAKEAWAY IS FOR YOU. >> FOR ME IT WAS AN OPPORTUNITY TO HAVE CRYPTO DEMYSTIFIED. I HAVE SPENT THE LAST COUPLE OF YEARS GETTING DEEP INTO CRYPTO.
EVERY STORY I DO I AM ASKING THE WRITER, WHAT IS THIS THING? IS THIS A COMPANY, PROTOCOL, WHAT IS THIS THING HAPPENING ON THE BLOCKCHAIN? CRYPTO HAS A WAY OF FILLING THE SPACE WITH NEW WORDS AND WHAT SEEMS LIKE IDEAS, THAT YOU HAVE TO DECODE TO EVEN TELL THE SIMPLEST STORY ABOUT CRYPTO. ONE OF THINGS MATT ACCOMPLISHED IN THIS PIECE, EVERYONE WHO READS THIS WILL ENJOY THIS, IT TAKES CRYPTO STEP-BY-STEP AND EXPLAINS IT. MOST IMPORTANTLY DOES NOT DO IT WITH THE PURPOSE OF SELLING YOU ON CRYPTO. IN FACT ETIQUETTE IS A TOOL ABOUT THINKING ABOUT IT -- IT IS A TOOL FOR THINKING ABOUT IT. WHAT IS THIS I AM GETTING SOLD OR PITCHED ON? WHAT IS THIS THING I THINK ABOUT INVESTING IN? WHAT IS THIS THING MY KID IS TALKING ABOUT? IS THIS SOMETHING I AM FAMILIAR WITH, AS OPPOSED TO BE INTIMIDATED, THAT I COULD NOT UNDERSTAND IT AND MORE SOPHISTICATED THAN I COULD GRASP. CAROLINE: WELL DONE, IT IS VERY ON DECREMENT OF TO PUT UP ACRONYMS IN AREAS WE DO NOT UNDERSTAND, AND IT FEELS LIKE A WALLED GARDEN.
WHERE THE ADDICTION HAS BEEN REAL, I HAVE SEEN IT IN MY OWN FAMILY, TRADITIONAL FINANCE. THEY CATCH THE BUG FOR CRYPTO, THEY WILL GO ALL IN AS WELL. ARE WE STILL HEARING ABOUT THE REVOLVING DOOR AND IF THAT WILL CONTINUE? GUEST: SOME OF THAT WAS HAPPENING, AS HE SAID LINE WAS GOING UP FOR A WHILE. LATELY THE LINES HAVE BEEN GOING DOWN. NOT IN TRADITIONAL FINANCE AND IN CRYPTO. THAT MAY SLOW THINGS DOWN. WHETHER THINGS CRYPTO DOES IS
GIVE PEOPLE ANOTHER DOOR TO GO THROUGH. YOU MAY SEE THIS. YOU DO SOMETHING IN TRADITIONAL FINANCE AND THINGS ARE NOT LOOKING FOR YOU AND IT DOES NOT MOVE AS FAST AS YOU LIKE. OVER HERE THERE IS ANOTHER NEW FINANCIAL SYSTEM, IF YOU CAN MASTER A PIECE OF CODE, BECAUSE IT IS ALL THERE AND IT IS NEW TO GET BUILT, YOU CAN START MOVING RIGHT AWAY.
THOSE THAT HAVE COVERED FINANCE FOR A WHILE KNOW THAT THERE ARE CYCLES WHERE THAT HAPPENS. THERE IS A NEW THING ON THE GROUND. I STARTED COVERING FINANCE IN THE 90'S.
THIS SOUNDS UNBELIEVABLE, ONCE, JEWEL FUNDS WITH A THE HOT THING, IF YOU ARE -- MUTUAL FUNDS, IF YOU ARE YOUNG, THEN IT WAS ETF'S. CAROLINE: CRYPTO STARTED TO BE A THING WHEN PEOPLE WERE STARTED TO UNDERSTAND WHAT TANTALIZED BY WAS AN FTS. -- NFTS. I CAN UNDERSTAND A ROYALTY GOING TO AN ARTIST, OR I CAN KEEP A VALUE AS IT GOES THROUGH DIFFERENT HANDS. IT IS NFTS STILL A GATEWAY? >> MATT, WHEN HE LOOKS AT THE PIECE, TALKS ABOUT HOW THIN THE CONNECTION IS BETWEEN THE CODE YOU INVEST IN AND THE ACTUAL PIECE OF ART. I DO THINK FOR A LOT OF PEOPLE,
IT IS DISTURBING TO IMAGINE, BITCOIN, WHAT IS BACKING THE VALUE OF BITCOIN? I DO NOT KNOW. THERE IS NOTHING BACKING THE VALUE OF OR DATE, YOU CAN SAY I UNDERSTAND -- BORED APE. I CAN UNDERSTAND THE AESTHETIC OF A MARKET LIKE THAT. THERE WERE ENOUGH SHENANIGANS IN THAT MARKET, CREATING INFLATED EVALUATIONS -- VALUATIONS THAT I THINK IT HAS GIVEN PEOPLE A LOT OF PAUSE ABOUT GETTING INTO THAT SPACE. CAROLINE: WHAT THEN? WE TALK ABOUT COME ACROSS A LOT OF OUR PLATFORMS HERE, IT IS STILL A STORE OF VALUE, IT IS GENERALLY A TRADING ASSET TYPE. WHEN DOES BECOME MORE THAN THAT?
WIND DOES IT BECOME INTEGRAL TO OUR WAY OF LIFE? GUEST: THAT IS THE QUESTION MATT IS WRESTLING WITH. HE IS A EXPERT ON FINANCING. WAY HE FOCUSES ON, THE DEGREE TO WHICH CRYPTO FINANCE IS JUST FINANCE. IT IS SIMILAR TO FINANCE. WHEN YOU STRIP IT ALL DOWN, IT GIVES PEOPLE A NEW FASTER START ON ALL THINGS, IT IS OFTEN REBUILDING THE SAME STRUCTURES WE HAD BEFORE.
MAYBE IN NEW WAYS, OFTEN IN DISASTROUS WAYS. INSIDE THE CRIB THE SPACE WE SAW A CRYPTO 2008, THEY BUILT ALL THE STRUCTURES TO CREATE A FINANCIAL CRISIS INSIDE OF CRYPTO. IT IS INTERESTING THAT CRISIS DID NOT LEAK OUT INTO THE REST OF THE MARKET. I THINK HOWEVER THAT IS WHY CRYPTO CONTINUES TO BE WORTH OUR ATTENTION. THE PEOPLE THAT ARE BUILDING THE STRUCTURES ARE BUILDING THINGS THAT LOOK A LOT LIKE THE THINGS IN TRADITIONAL FINANCE THAT BREAK AND SOMETIMES BREAK DISASTROUSLY. CAROLINE: WELL DONE, WHAT AN ENORMOUS
READ. GO AND HAVE A LOOK AT HIS WORK, AND THAT OF MATT. WE THANK HIM. COMING UP ELON MUSK US AS THE TWITTER DEAL IS STILL ON. THIS IS ANOTHER THING MATT TALKS A LOT ABOUT, WE WILL BE CLOSING ON FRIDAY WILL HAVE THE LATEST DETAILS. THIS IS BLOOMBERG. CAROLINE: LET'S GET YOU UP TO SPEED WITH THE LATEST IN THE MUSK TWITTER SADA. ELANA -- SAGA.
ELON MUSK HAS CALLED PLEDGED EARLIER TO CLOSE THE ACQUISITION OF TWITTER ON FRIDAY. ED LUDLOW, MENA BY MINUTE ACROSS THIS PARTICULAR DEAL. HE SAID HE WOULD DO IT AT THE BEGINNING, NOW IT SEEMS AS THOUGH HE IS FORCED TO DO AT THE END. ED: THIS IS ONE OF THE INTERESTING SITUATIONS WITH THE DEVIL IS IN THE DETAILS, BLOOMBERG IS REPORTING THAT BANKS ARE BRACED FOR THE HOUR WE NOTICE THAT SHOULD HAVE COME TUESDAY. THE MONEY PLEDGED WOULD HAVE
GOING TO NEED TO GO INTO ESCROW THURSDAY, HE TOLD BANKERS THAT HE WOULD CLOSE A DEAL BY 5 P.M. FRIDAY, THE STOCK ACT IN THE WAY YOU WOULD EXPECT, GOING CLOSER TO THE OFFER PRICE. A SOFT INDICATION FROM THE STREET THAT WE THINK WE ARE IN A PLACE WHERE THIS DEAL WILL GET DONE. THE MECHANICS OF IT ARE SUCH
THAT THEY ARE MOVING IN THAT DIRECTION. I WOULD SAY WE ORDER REPORTING AND WEEK AGO THAT BANKERS AND ADVISERS IN BOTH SIDES HAVE BEEN ACTING DILIGENTLY TO MEET THAT 5 P.M. EASTERN TIME DEADLINE THAT WAS SET BY THE DELAWARE JUDGE. WE KNOW WHERE WE STAND. CAROLINE: LATER IN THE WEEK, 26, WE GET TWITTER EARNINGS, TELLS ABOUT THE EARNINGS YOU DIGESTED, THE CONVERSATION WITH RUTH AT ALPHABET. ED:
ALPHABET MISSING ON THE TOP AND BOTTOM LINE, INTERESTING, LILY THIS IS A CHALLENGING ENVIRONMENT FOR THEM -- CLEARLY THIS IS A CHALLENGING ENVIRONMENT FOR THEM. IN THAT CONVERSATION SHE GAVE HER INSIGHT ON THE PULLBACK IN AD BY. THE MACROENVIRONMENT REMAINS CHALLENGING, THIS IS WHERE ALL BIG TECH COMPANIES THAT DERIVE PROFITS, I SHOULD SAY SALES FROM AROUND THE WORLD ARE FACING CURRENCY HEADWINDS. THE DECELERATION IS PRIME REALLY DRIVEN BY LAPPING. RUTH IT SAYS THAT SHE IS COMPARISON -- COMPARING THE QUARTER TO AN INCREDIBLE DOUBLE-DIGIT TOPLINE GROWTH A YEAR AGO AS THEY RECOVERED FROM THE EARLIER STAGES OF THE PANDEMIC.
THAT IS AN INTERESTING TRICK EXECUTIVES SOMETIMES USED TO COMPLAIN TO COMPARISON TO A STRONG QUARTER. CAROLINE: AND LIST ACROSS THE BOARD HAD BEEN DOWNGRADING COMPANIES, IT IS ALWAYS A JOLT WHEN THEY MISS THEM. WHAT IS YOUR READ AND HOW SHE IS THINKING ABOUT COME WHAT SHE'S TALKING ABOUT TERMS OF YOUTUBE AND ADVERTISING WHAT THIS MEANS IN TERMS FOR META? ED: WHAT WE SEE IS BROAD WEAKNESS IN THE AD SPACE, SNAP EARNINGS SCRAPPED GUIDANCE AND HAD THE SLOWEST EARNINGS ON RECORD, THEY GAVE US VARIOUS GRANULARITY ABOUT THE PULLBACK FROM ADVERTISERS. THE QUESTION ON THE STREET IS THIS PARTICULAR TO SNAP? OR IS THIS MORE WIDESPREAD? IN THE COMMENTARY HAD FROM RUTH AND OTHER GOOGLE ALPHABET EXECUTIVES IT IS MORE WIDESPREAD.
THAT BUILDS CONCERN GOING INTO META THIS THURSDAY. CAROLINE: SHE SAYS THIS IS A PULLBACK IN ADVERTISING, THE QUESTION IS HOW LONG DOES IT LAST? WE WILL GET MORE REGULAR DETAILS WITH CALLS AN ANALYST WITH INVESTORS AT THE MOMENT. SO SMART, WE THANK YOU FOR DELVING IN WITH THE KEY QUESTIONS WITH HER AND BRING THEM TO US AS QUICKLY AS YOU DID. THIS DOES IT WITH THIS EDITION
OF "BLOOMBERG TECHNOLOGY," WEDNESDAY DO NOT MISS THE NEXT STUDIO 1.0. TALKING TO THE NEXT DOORDASH CEO. THE DESIRE TO SPEND UP TO GET YOUR DELIVERIES. THERE IS QUESTIONS ABOUT THE LABOR MARKET AS WELL AS HAS WE CONTINUE -- AND HOW WE CONTINUE TO CONSIDER THOSE EMPLOYEES. DO NOT FORGET TO CHECK AT THE PODCAST AS WELL, YOU CAN FIND ON THE TERMINAL, APPLE, SPOTIFY, I HARD, CHECK OUT WHAT WE HAVE BEEN MAKING OF THE LATEST SPOTIFY EARNINGS. LOOKING FOR WHAT APPLE'S EARNINGS ARE LATER IN THIS WE CAN STICK WITH US ON BLOOMBERG TV AND ACROSS ALL OUR PRODUCTS FOR THE EARNINGS.
THIS IS BLOOMBERG. ♪
2022-10-26 12:42
