Roblox Slumps on Hindenburg Bet, States Sue TikTok | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY AND POWER COLLIDE. THIS IS "BLOOMBERG TECHNOLOGY," WITH CAROLINE HYDE AND ED LUDLOW. ♪ CAROLINE: FROM NEW YORK AND SAN FRANCISCO, THIS IS "BLOOMBERG TECHNOLOGY."
HINDENBURG RESEARCH BETS AGAINST ROBLOX BASED ON WHAT IT CALLS INFLATED KEY METRICS AND THE LACK OF CHILD SAFETY. ED: TIKTOK GETS SUED IN CALIFORNIA, NEW YORK AND OTHER STATES FOR DECEIVING USERS ABOUT ITS SAFETY FOR CHILDREN. CAROLINE: WE HEAR FROM JAMIE DIMON ON AI AND EXCESSIVE INTERVIEW AT THE FIRM'S TECH STARS CONFERENCE IN EUROPE. COMING UP, WE GO STRAIGHT TO SHARES OF ROBLOX WHICH ARE TUMBLING TODAY AFTER SHORT SELLER HINDENBURG RESEARCH SAYS IT IS BETTING AGAINST THE GAMING PLATFORM, SAYING IT HAS INFLATED KEY METRICS AND ALSO FOCUSING ON A LACK OF SAFETY FOR CHILDREN ON THE PLATFORM. WE GO TO BAILEY LIPSCHULTZ FOR
MORE. THE ACCUSATIONS OF PEOPLE, OF KEY METRICS, TIME SPENT, ENGAGEMENT. WHAT ARE THE ACCUSING HERE? BAILEY: THAT'S THE BIG THING. THIS IS A NEW TAKE FROM THE SHORT SELLER HINDENBURG TARGETING THEY ARE INFLATING SOME OF THOSE METRICS TO APPEASE INVESTORS.
WE HAVE SEEN LONG DISCUSSED ISSUES WITH THE PLATFORM AND CHILD SAFETY. BLOOMBERG HAD A BIG TAKEN THE SUMMER ENTITLED ROBLOX, PEDOPHILE PROBLEM. THOSE ALLEGATIONS FROM HINDENBURG THAT THEY HAVE BEEN INFLATING METRICS, THE COMPANY SAYS THEY REJECT THOSE. THAT IS WHAT IS NEW. THE COMPANY COULD, IF YOU TAKE
IT AT FACE VALUE, THEY ARE BETTING AGAINST THE COMPANY AND BOOSTING THE NUMBERS TO ALLAY INVESTOR CONCERNS THAT MAYBE THEY DON'T HAVE THE REACH OR ENGAGEMENT WALL STREET IS LOOKING FOR. ED: LET'S GO TO ROBLOX'S RESPONSE. LET'S BRING IT UP ON THE SCREEN. WE TOTALLY REJECT THE CLAIMS MADE IN THE REPORT. THE FINANCIAL CLAIMS MADE BY HINDENBURG RESEARCH ARE SIMPLY MISLEADING. THE AUTHORS ARE ADMITTEDLY SHORT-SELLERS AND HAVE AN AGENDA IRRESPECTIVE OF THE SUBSTANCE OF ROBLOX'S BUSINESS MODEL. THEY SAY A PUSHBACK AGAINST THE THESIS AT THE CENTER OF VANDENBERG'S RESEARCH -- HINDENBURG'S RESEARCH. BECAUSE IT'S A COMPANY THAT
CLAIMS IS AN PROFITABLE, THE CLAIM IS THEY ARE MISLEADING INVESTORS BECAUSE THEY RELY ON A DAILY ACTIVITY USER NUMBER AND A PEOPLE NUMBER THAT OF THE SAME. IF YOU READ THE FOOTNOTES IN THE DISCLOSURES, THEY READ YOU SHOULD NOT RELY ON THE DAILY ACTIVITIES NUMBER BECAUSE IT COULD INCLUDE BOTS OR ALT ACCOUNTS. IT IS HARD TO FOLLOW. GO OVER THE BACK AND FORTH PARTIES, BAILEY. -- BETWEEN THE PARTIES, BAILEY. BAILEY: WHEN YOU LOOK AT IT TO VIDEO GAMING PLATFORM IT IS VALUE.
THAT IS BULLISH FOR THE COMPANY IN THEIR VIEW. TO WHAT HINDENBURG LAID OUT LOOKING AT THE METRICS, THEY ARE LOOKING AT PROFITABILITY AND A STRING OF UNPROFITABLE QUARTERS. YOU HAVE TO TAKE INTO CONSIDERATION HINDENBURG IS BETTING AGAINST THE COMPANY. THE COMPANY IS DOWN 70% FROM ITS ALL-TIME HIGH IN 2021. IT'S BEEN ON A STRING OF LOSING DOWN DAYS, DOWN ABOUT 13% OR 14% FROM THE SEPTEMBER HIGH. IT DEPENDS ON HOW YOU WANT TO VALUE IT. YOU CAN POINT AT ANY
SHORT-SELLERS REPORT AND SAY THEY ARE CHERRY PICKING DATA WHICH SEEMS TO BE WHAT ROBLOX IS DOING HERE, ON THE FLIPSIDE IF YOU'RE AN INVESTOR WHO HAS LONGED THE STOCK, WRAP YOUR MIND AROUND THE TOTALITY OF THE DATA. I WANT TO CALL OUT WE ARE NINE TIMES WHAT IS NORMAL IN TERMS OF TRADING VOLUME. MORE THAN 17 MILLION SHARES CHANGING HANDS IN THE FIRST HOUR AND A HALF OF TODAY, WHICH REALLY IS MORE THAN WE WOULD NORMALLY SEE AN ENTIRE SESSION. CAROLINE: WE HAVE ROBLOX'S RESPONSE AND THEY HAVE LONG BEEN TRYING TO SHOW OFF WAYS IN WHICH THEY ARE TRYING TO TAKE ON THE SAFETY CONCERNS AS WELL. I'M INTERESTED IN THIS IS NOT THE ONLY VOICE OF A BEARISH NATURE.
EVAN DORSEY WRITES, MULTIPLE BEARISH CASES. WHY HE IS CONCERNED ABOUT PARTICULAR COMPANIES. IS THIS A MOUNTING CONCERN OR IS THIS THE FIRST TIME? BAILEY: RELATING TO USER METRICS IS NEW. THAT IS NOT WHAT EDWARD DORSEY HAS TARGETED AND NOW IN BLOOMBERG AND OTHER OUTLETS HAVE REPORTED AROUND CHILD SAFETY AND POTENTIALLY PUTTING PROFITS OVER PEOPLE. THESE ALLEGATIONS IN TERMS OF
POTENTIALLY INFLATING NUMBERS, TO MY KNOWLEDGE IT IS NEW. I HAVE READ, AS I AM SURE A NUMBER OF VIEWERS DO HAVE READ A LOT ABOUT THEY PUT OUT. THEY HAVE BEEN PUBLISHING ON THIS COMPANY FOR QUITE SOME TIME. THE MOST RECENT REPORT WAS EARLIER THIS WEEK INCORPORATING SOME OF THEIR METRICS IN THE LATEST REPORT FROM LAST WEEK. FOR THE MOST PART WHAT I HAVE
READ IT FOCUSES MORE ON CHILD SAFETY, PROFITS AND THE LACK OF SAFEGUARDS. ED: THEY ARE DIFFERENT THESES. WE MADE EVERY ENDEAVOR -- EFFORT TO INVITE HINDENBURG AND ROBLOX. BAILEY LIPSCHULTZ, THANK YOU VERY MUCH. ANOTHER BREAKING NEWS STORY. TIKTOK WAS SUED BY CALIFORNIA, NEW YORK AND A DOZEN OTHER STATES ON TUESDAY FOR ALLEGEDLY DECEIVING USERS ABOUT ITS SAFETY FOR CHILDREN AND USING HARMFUL AND ADDICTIVE FEATURES TO KEEP CHILDREN ON THE PLATFORM LONGER TO MAXIMIZE PROFITS. TIKTOK HAS NOT RESPONDED TO OUR REQUEST FOR COMMENT. MIKE SHEPPARD JOINS US IN D.C.. EXPLAINED THE BASICS OF THE ACTION TAKEN BY THESE STATES, THE MECHANISM HOW THEY TOOK IT AND WHAT THE CLAIM IS. MIKE:
THE STATES HAVE WORKED TOGETHER IN THIS CLAIM AGAINST TIKTOK, GOING AFTER THE COMPANY OVER WHAT THE STATE ATTORNEYS GENERAL CALLS HARMFUL BEHAVIOR TO THE PUBLIC. IN OTHER WORDS, BAKING IN ADDICTIVE FEATURES INTO THE ALGORITHM, THE SOFTWARE, THIS PLATFORM THAT CHILDREN ARE USING SO THAT THEY ARE HOOKED. SO IT KEEPS THEM ON AS REPEAT CUSTOMERS SO THEY STAY ON THE PLATFORM LONGER. THIS INCLUDES THINGS LIKE, SCROLLING. IT ALSO INCLUDES -- LIKE ENDLESS SCROLLING.
IT ALSO INCLUDES BEAUTY FEATURES AND COMMENTS AND LIKE SECOND HER SELF-ESTEEM. ALL THIS IS CAUSING A PUBLIC HEALTH CRISIS AMONG YOUNG PEOPLE. THEY ARE TAKING STEPS TO TRY TO ADDRESS IT. CAROLINE: THAT IS NOT THE ONLY LAWSUIT.
THERE'S BEEN A BARRAGE OF FEDERAL LAWSUITS IN AUGUST CLAIMING TIKTOK ALLOWED CHILDREN TO OPEN ACCOUNTS AND GATHERED INFORMATION ABOUT THEM WHEN THEY SHOULD NOT HAVE BEEN. WHAT IS INTERESTING IS TIKTOK LIKE META AND OTHER COMPANIES ARE PUTTING IN PLACE WHAT THEY SAY OR SAFEGUARDS. YOU HAVE ACCOUNTS FOR TEENS STARTING IS PRIVATE AND A SCREEN THEM AT TIME OF SAFETY MINUTES. THE ATTORNEYS GENERAL TAKE ISSUE WITH SAFETY PRECAUTIONS SAYING THEY ARE NOT REAL. MIKE: IN THE CASE YOU MENTIONED, AND
I'M GLAD YOU BROUGHT IT UP, IN AUGUST, THE FEDERAL TRADE COMMISSION SUED THE COMPANY FOR FAILING TO ABIDE BY THE TERMS OF THE 2019 SETTLEMENT OVER CHILD PRIVACY. IN BOTH CASES WITH THE FEDERAL GOVERNMENT AND THEN STATE ATTORNEYS GENERAL ARE ALLEGING IS THESE MEASURES HAVE NOT BEEN ENOUGH. IN THE CASE BROUGHT BY CALIFORNIA TODAY AND THE OTHER STATES, THEY WERE SAYING CHILDREN'S PRIVATE DATA WAS BEING EXPLOITED WITHOUT PARENTAL CONSENT OR NOTICE. THAT IS A FUNDAMENTAL VIOLATION OF THE RELATIONSHIP WITH CHILDREN UNDER THE AGE OF 13. CAROLINE: MIKE SHEPPARD, WE APPRECIATE IT.
THANK YOU. LET'S TURN TO SOUTH KOREAN TECH GIANT SAMSUNG ISSUING A RARE APOLOGY TO INVESTORS AFTER POSTED DISAPPOINTING RESULTS, ADMITTING IT IS GRAPPLING WITH A POTENTIAL CRISIS AFTER LOSING ITS WAY. THE NEWLY APPOINTED HEAD OF SAMSUNG'S CHIP BUSINESS PROMISED OVERHAUL THE ORGANIZATION AND BEGAN LAYING OFF WORKERS LAST WEEK IN SOUTHEAST ASIA, AUSTRALIA AND NEW ZEALAND AS PART OF A PLAN TO REDUCE GLOBAL HEADCOUNT. ED? ED: COMING UP, RIVIAN HITS A SNAG IN AND SUPPLY CHAIN, THROWING A WRENCH INTO 2024 PRODUCTION TARGETS. ONE OF THE STORIES WE WILL BRING YOU LATER IN THE HOUR. LOOK AT SHARES OF NVIDIA. IT IS OFF THE SESSION HYBRID TOUCHED AGAIN A 4%.
THAT WOULD MAKE THE STOCK TRADING ITS HIGHEST LEVEL SINCE MID JULY. IT IS INTERESTING. THEY ARE HOLDING THEIR AI SUMMIT D.C. RIGHT NOW WHETHER TALKING ABOUT BLACKWELL AND HOW ENERGY EFFICIENT IT IS. TRYING TO OVERCOME CONCERNS ABOUT POWER CONSUMPTION IN THE CONTEXT OF GPU'S THEY GO INTO DATA CENTERS. STAY WITH US. THIS IS "BLOOMBERG TECHNOLOGY." ED: AMAZON IS SET TO FACE AN ANTITRUST SUIT FILED BY U.S.
FEDERAL TRADE COMMISSION OVER COMPLAINTS ITS ONLINE MARKETPLACE PRACTICES HARMED COMPETITION. LEAH NYLUND JOINS US AT A D.C. GIVE US THE BASICS OF THE COMPLAINT AND THE PROCESS. LEAH: THE ENTITY -- FTC FILED THIS COMPLAINT ALLEGING AMAZON HAS HARMED EMERGENCY USE ITS ONLINE MARKETPLACE THROUGH A VARIETY OF TACTICS. AMAZON DENIES THE ALLEGATIONS AND FILED A REQUEST THE COURT THROW OUT THE COMPLAINT AT THIS EARLY STAGE. THAT IS UNUSUAL BUT META WAS SUCCESSFUL WHEN IT DID THAT AGAINST THE FTC COMPLAINT SO AMAZON IS TRYING AS WELL.
THE JUDGE RELEASED ITS DECISION -- HIS DECISION AND AGREE TO TOSS OUT A COUPLE OF ALLEGATIONS UNDER ITS VARIOUS STATE LAW CLAIMS THAT AMAZON'S MARKET PLACE VIOLATES STATE CONSUMER PROTECTION LAWS. HE RULED THE FTC'S COMPLAINT CAN MOVE FORWARD, A BIG LOAD AMAZON. AMAZON SAID IT MADE A BUNCH OF ARGUMENTS THAT IT'S MARKETPLACE IS DESIGNED TO HELP CONSUMERS. ALL OF ITS ALGORITHMS ARE DESIGNED TO HELP LOWER PRICES. THE JUDGE SAID THAT MAY BE THE
CASE BUT AT THIS POINT IN THE SUIT I CAN'T REALLY CONSIDER THAT. WE HAVE TO MOVE FORWARD BEFORE AMAZON IS ALLOWED TO MAKE THOSE KINDS OF ARGUMENTS. CAROLINE: AMAZON FRONT AND CENTER, BUT SO TOO IS ALPHABET AT THE MOMENT IN MULTIPLE WAYS. WE EXPECTING FURTHER UPDATES IN
TERMS OF CONCERNS ABOUT ITS OWN MARKETPLACE TODAY. LEAH: YEAH. YESTERDAY IN THE GOOGLE PLAY CASE, AN ANTITRUST CASE IN CALIFORNIA INVOLVING EPIC GAMES, THE JUDGE IN THE CASE IMPOSED AN INJUNCTION ON GOOGLE DEVIL BA -- THAT WILL BAN IT FROM PAYING DEVELOPERS OR MANUFACTURERS TO MAKE ITS PLACE THE DEFAULT WHEN ON THE DEVICE. THEY CAN NO LONGER PAY DEVELOPERS TO EXCLUSIVELY LAUNCH THEIR APPS IN THE APP STORE. IT HAS TO ALLOW OTHER COMPANIES THAT WANT TO PERHAPS LIKE AMAZON OR MICROSOFT OFFER ALTERNATE APP STORES FOR ANDROID DEVICES. THIS LAST FOR THREE YEARS. THE IDEA IS THAT GOOGLE HAS MADE ALL OF THESE PROVISIONS IN ITS RULES RELATED TO THE APP STORE THAT HARMED COMPETITION A JURY FOUND.
THIS PROHIBITION ON PAYING DEVELOPERS TO LAUNCH EXCLUSIVELY AND BEING FORCED TO ALLOW OTHER APP STORES IS TO HELP DEVELOP MORE APP STORES IN THE ANDROID ECOSYSTEM. GOOGLE IS GOING TO APPEAL. THEY ANNOUNCED THAT YESTERDAY. THIS IS NOT GOING TO GO INTO EFFECT IMMEDIATELY. THERE WAS AN IMMEDIATE IMPACT ON THE STOCK PRICE BECAUSE THIS IS A $14 BILLION A YEAR BUSINESS FOR GOOGLE. IT IS GOING TO DEFINITELY IMPACT THE AMOUNT OF REVENUE THEY MAKE EACH YEAR. SEPARATELY -- SORRY. SEPARATELY TODAY AND THE SEARCH CASE, THE ONE THE JUSTICE DEPARTMENT FILED IN 2020, THE JUDGE RULED EARLIER THIS YEAR GOOGLE HAS AN ILLEGAL MONOPOLY IN ONLINE SEARCH AND SEARCH ADS.
THE JUSTICE DEPARTMENT IS SUPPOSED TO MAKE ITS FIRST PROPOSAL SOMETIME LATER TODAY ABOUT WHAT IT THINKS GOOGLE SHOULD BE FORCED TO DO TO REMEDY THE HARM CAUSED IN THE ONLINE SEARCH MARKET. WE REPORTED A COUPLE OF MONTH AGO ONE OF THE OPTIONS THEY MIGHT BE PROPOSING IS A BREAKUP. THIS COULD BE THE FIRST TIME THE FEDERAL GOVERNMENT IS LOOKING TO BREAK UP A COMPANY IN DECADES.
WE ARE EAGERLY AWAITING THAT HERE IN D.C. CAROLINE: SEARCH, APP STORE. WITH AMAZON IT IS MARKETPLACE. THERE'S A LOT ON YOUR PLACE. WE APPRECIATE THAT, LEAH NYLUND. META IS ROLLING OUT NEW AI TOOLS TO HELP ADVERTISERS CREATE AND EDIT VIDEOS EASILY. SEEKING TO REACH FACEBOOK, INSTAGRAM USERS WHO ARE SPENDING MORE TIME WATCHING VIDEOS. THE NEW FEATURES AVAILABLE
BROADLY NEXT YEAR WILL THAT ADVERTISERS USE GENERATIVE AI TO TURN STATIC IMAGES INTO VIDEO ADS. MARKETERS WILL ALSO BE ABLE TO EDIT AND ADJUST THE SIZE OF THE VIDEO ADS AUTOMATICALLY. LET'S BRING IN RACHEL TIPOGRAPH . THESE TOOLS -- THE CEO COMING ON OTHER KEY SOCIAL MEDIA COMPANIES THAT HAVE REALLY BEEN THINKING ABOUT THE WAYS IN WHICH THEY CAN USE GENERATIVE AI. THAT WAS PINTEREST LAST WEEK. META TODAY. WHAT IS THAT ADD TO YOUR MARKETERS WHO WANT TO SPEND TIME ON THESE COMPANIES? RACHEL: THE ANNOUNCEMENT THAT META MADE AROUND WHAT THEY CUP CALLED METAGEN VIDEO.
THE NUMBER ONE BARRIER IS CREATIVE. THE FASTEST GROWING AD PLATFORMS ARE ONES THAT ARE CENTERED AROUND SHORT-TERM VIDEO -- SHORT FORM VIDEO. THE FACT THAT THEY WILL DEMOCRATIZE VIDEO CREATION, IT SHOULD BOON THEM TO GET MORE AD DOLLARS FROM THE SMB BUSINESSES. THAT IS A LONG TAIL OF ADVERTISING THAT IS REALLY GOING TO PROPEL TO MINISTER OF FOREST -- META'S GROWTH FORWARD. CAROLINE: IMPRESSIONS.
COMMERCE IMPRESSIONS. YOU ARE SAYING META IS DRIVING TWO THIRDS OF SOCIAL TRAFFIC. IT'S ALREADY A WINNING FORMULA FROM YOUR PERSPECTIVE. RACHEL: IT ABSOLUTELY IS.
TO PUT THIS SLIDE IN THE CONTEXT, BETWEEN 2023 AND 2024, WE HAVE SEEN A 10% GROWTH IN BRAND TRAFFIC AT META. WE HAVE SEEN 190% GROWTH IN BRAND TRAFFIC IN TIKTOK. IF META WANTS TO CONTINUE TO HAVE THIS HUGE LEAD IN FRONT OF PLATFORMS LIKE TIKTOK AND GOOGLE, IT NEEDS TO CONTINUE TO MAKE INVESTMENTS IN THEIR PLATFORM. THEY CANNOT REST ON THEIR LAURELS.
THAT IS WHY I'M PURSUING -- PERSONALLY PROUD OF META FOR RECOGNIZING THE NEED TO MAKE THE ADVANCEMENTS IN AI TO CONTINUE TO LOWER THE BARRIER TO ENTRY FOR ADVERTISERS. ED: I WOULD LIKE TO GO BACK TO META AND THE NEWS. YOU UNDERSTAND THE IMPORTANCE OF TECHNOLOGY FROM THE ADVERTISER'S PERSPECTIVE. THIS NEW FEATURE CAN TURN A STATIC IMAGE INTO A VIDEO AD. SIMPLE. I THINK META IS GETTING A LOT OF CREDIT FOR THE REAL WORLD PROGRESS IT IS MAKING IN AI. JUST YOU REACTION TO THAT BASIC IDEA OF WHAT YOU THINK YOU WILL DO TO MOVE THE PATH FORWARD FOR ADVERTISERS? RACHEL: ABSOLUTELY. TO PUT THIS IN CONTEXT,
ADVERTISERS CAN SPEND SOMEWHERE BETWEEN 10% OF THEIR OVERALL MARKETING INVESTMENTS ON CREATIVE. THAT IS JUST FROM THE COST OF CREATED. THE AMOUNT OF HOURS THEY GO INTO CREATING A VIDEO, PROVING A VIDEO, UP AND DOWN THE TOTEM POLE, THAT IS SEVERAL PEOPLE'S JOBS IN AN ORGANIZATION. A SIMPLE SOLUTION LIKE THIS
MIGHT SEEM OBVIOUS AND SMALL BUT IT ACTUALLY CAN CHANGE MARKETING AND ADVERTISING AS WE KNOW IT. IT ALSO CAN CREATE A RIPPLING EFFECT IN TERMS OF HEADCOUNT. YOU MIGHT NEED FEWER MARKETERS WITH TOOLS LIKE THIS. IT IS A REALLY BIG DEAL IN THE ADVERTISING INDUSTRY.
THE FLIPSIDE IS, FOR FORTUNE 1000 BRANDS WHEN IT COMES TO AI AND CREATIVE THEY HAVE TWO MAJOR CONCERNS. NUMBER ONE, COPYRIGHT VIOLATION. NUMBER TWO, DATA PRIVACY. THERE IS A DIFFERENCE WHEN YOU TALK TO A MARKETER THAT'S RUNNING A BUSINESS THAT'S DOING $50 MILLION REVENUE VERSUS WHEN YOU TALK TO MARKETERS DOING A BILLION DOLLARS REVENUE. MEDICAL HAVE SOME WORK TO DO WITH THE MAJOR -- META WILL HAVE MAJOR WORK TO DO WITH ADVERTISERS ABOUT COPYRIGHT AND DATA PRIVACY. ED: WE HAVE TO MOVE ON A LITTLE BIT TO AMAZON. IT IS PRIME DAY. AT HOME PRIME DAY WILL BE BIG. I HAVE A FEW THINGS TO GET. FOR OTHER PEOPLE IT IS
COMPLETELY INANE. WHY IS AMAZON PRIME DAY WINDOW IMPORTANT FOR YOU AND YOUR PLATFORM? RACHEL: ABSOLUTELY. AMAZON PRIME DAY HAS BECOME A TENTPOLE MOMENT NOT JUST IN THE U.S. BUT GLOBALLY. IT IS A DAY TO REALLY MOVE A LOT OF EXCESS SUPPLY AND BRING VALUE TO CONSUMERS. IN 2024, THIS IS REALLY IMPORTANT.
ON ANY GIVEN DAY AT KNICKKNACK WE HAVE SEEN A 20% DECLINE IN BASKET SIZES. YOU HAVE NOW SEEN THIS PLAY OUT IN PUBLIC EARNINGS OF MASS CONSUMER PRODUCT COMPANIES. VOLUME SALES ARE DOWN. WHY? THE LAST TWO YEARS MAJOR MASS CONSUMER PRODUCT COMPANIES HAVE TAKEN PRICE HIKES. NOW CONSUMERS ARE FIGHTING BACK WITH THEIR WALLETS.
WHAT AMAZON PRIME DAY IS GOING TO SHOW US TODAY AND TOMORROW IS HOW WILLING ARE CONSUMERS GOING TO SPEND DURING THIS YEAR'S HOLIDAY SEASON. THERE'S BEEN INFLATION AND PRICE HIKES. ON THE OTHER SIDE OF THE EQUATION THE FED DROPPING INTEREST RATES AND HOPEFULLY DOING THAT AGAIN IN NOVEMBER AND DECEMBER BRINGS OPTIMISM TO CONSUMERS. ED: RACHEL COVERING ALL OF IT, THANK YOU SO MUCH. AMAZON RIVAL TIMMY WAS -- TEMU IS SELLING ALEXA ACTIVATED REMOTE CONTROLS THAT ARE COMPATIBLE WITH AMAZON'S FIRE TV STICK FOR AS LITTLE AS FOUR DOLLARS.
SIMILAR GENERIC VERSIONS COST ABOUT $10 ON AMAZON.COM. THE OFFICIAL FIRE TV REPLACEMENT IS ABOUT $25. CAROLINE: COMING UP, DID CHINESE HACKERS GET ACCESS TO COURT AUTHORIZED WIRETAPS THREE U.S.
TELECOM COMPANIES? THE NSA IS INVESTIGATING ACCORDING TO ONE OFFICIAL. DETAILS ARE AHEAD. CAROLINE: THE U.S. IS IN THE EARLY STAGES OF AN INVESTIGATION INTO CHINESE HACKING OF AMERICAN TELECOM COMPANIES. INVESTIGATORS SAY A HACKER MAY HAVE ACCESS TO COURT AUTHORIZED WIRETAPPING INFORMATION. WE WILL DISCUSS THIS WITH
FORMER CHIEF OF STAFF KIERSETN TODT. HOW DO WE KNOW IT IS CHINESE HACKERS? KIERSTEN: WE ARE LEARNING ABOUT THE EFFORT. THIS MALICIOUS ACTOR, SAUL TYPHOON PART OF A PRC STATE-SPONSORED CYBER CAMPAIGN AND THIS ONE IN PARTICULAR WE BELIEVED TO HAVE HACKED INTO INTERNET SERVICE PROVIDERS A LITTLE OVER A MONTH AGO. WE ARE RESEARCHING IF IN FACT
IT HACKED INTO COMMUNICATION COMPANIES. WE BELIEVE IT IS THE START OF A BROADER CAMPAIGN. EARLIER THIS YEAR THEY ATTACKED THE I.T.
NETWORKS AND A CYBER ESPIONAGE EFFORT BY CHINA AGAINST THESE ORGANIZATIONS. ED: THE FOCUS IS INFRASTRUCTURE. TELECOMS. WATER INFRASTRUCTURE. YOUR EXPERT ANALYSIS ON THAT? KIERSTEN: IT IS ALL INFRASTRUCTURE. WHEN WE LOOK AT INTELLIGENCE OVER THE LAST TWO YEARS -- LAST YEAR THE THREAT ASSESSMENT FROM THE UNITED STATES INTELLIGENCE COMMUNITY SAID CHINA WOULD BE SEEKING TO PRE-POSITION ITSELF ON ALL INFRASTRUCTURE. IF WE BELIEVE IN CHINA'S STRATEGIC OBJECTED TO GO AFTER TAIWAN, THEY WOULD HAVE THE ABILITY TO DISRUPT AND IN SOME CASES DESTROY OUR INFRASTRUCTURE TO MINIMIZE OUR ABILITY TO ACT AS AN ADVERSARY AGAINST CHINA. CAROLINE: THE RESPONSE, THE SAFETY, IS THERE ENOUGH COMING FROM THE U.S.? KIERSTEN: WE HAVE TO BE DOING MORE.
IF I'M A CEO OR BOARD MEMBER OF A COMPANY, I'M ENSURING I'M ELEVATING MY SECURITY, MY SAFETY. I HAVE TO ASSUME CHINA IS ON MY NETWORK. THIS IS NOT ABOUT FEAR. IT'S ABOUT STRATEGY AND BEING SMART AND PREPARING FOR A MORE SECURE AND RESILIENT INFRASTRUCTURE. WE HAVE TO ELEVATE OUR GAME. THIS SHOULD NOT BE NEWS TO ANY
COMPANY OR ANY BOARD MEMBER WITH CYBER BOARD GOVERNANCE. ALL COMPANIES, CRITICAL INFRASTRUCTURE COMPANIES SHOULD BE TESTING CONTINUITY PLANS AND DIFFERENT SCENARIOS TO ENSURE THEY ARE SAFE AND SECURE IN LIGHT OF THIS THREAT. ED: KIERSTEN TODT, THANK YOU SO MUCH.
COMING UP ON BLOOMBERG, WE WILL HEAR FROM J.P. MORGAN'S HEAD OF EUROPEAN TECH INVESTMENT BANKING ON HIS BIGGEST BETS IN THE REGION. THE BIGGEST NAMES OUT OF EUROPE. THAT IS NEXT. THIS IS "BLOOMBERG TECHNOLOGY."
♪ CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." ED: I MET LULA -- ED LUDLOW AND SAN FRANCISCO. CAROLINE: THE MAG7 DOING HIS THING. WHO LEADS THE CHARGE? NVIDIA, OF COURSE. WE CONTEMPLATE THE DIRECTION OF TRAVEL FOR THE FEDERAL RESERVE AND WHETHER THEY CAN CONTINUE TO . A 30% RALLY IN THE LAST FIVE DAYS. WE GET NEWS ABOUT ITS ENERGY EFFICIENCY COMING FROM ITS AI EVENT THAT'S HAPPENING TODAY. MICROSOFT UP A PERCENTAGE POINT.
MORE BEARISH CALLS COMING FOR THIS PARTICULAR NAME. WILL IT LIVE UP TO THE AI HEIGHT. OPPENHEIMER MORNING THE OFFER ESTIMATED IN MICROSOFT PUSHING THAT MORE THAN A PERCENTAGE POINT. SUPERMICRO COMING DOWN FROM YESTERDAY. DOWN BY ALMOST 6% AFTER A RALLIED MORE THAN 15% YESTERDAY.
THIS IS ON THE BACK OF IT TALKING ABOUT DEPLOYING OVER 100,000 GRAPHICS PROCESSING UNITS AND GP USING JUST ONE QUARTER ALONE. THEY ARE TALKING ABOUT LIQUID COOLING SYSTEMS. THIS IS IN A BEATEN UP BECAUSE THEY'RE WORRIED ABOUT THE DOJ INVESTIGATING. ED: THERE ARE CORNERS OF THE MARKET WHERE INVESTORS ARE LITTLE DISAPPOINTED THAT CHINA IS HOLDING BACK ON FURTHER STIMULUS. BEIJING STILL EXPRESSING CONFIDENCE IN CURRENT TARGETS.
>> WE ARE CONFIDENT IN REALIZING OUR GOALS FOR THE WHOLE YEAR AND HAVE FULL CONFIDENCE IN MAINTAINING CONTINUED STEADY AND SOUND DEVELOPMENT OF THE ECONOMY. ED: LET'S BRING IN HIS ABILITY -- ISABEL LEE. IF YOU ARE TUNING IN FOR THE FIRST TIME OR EVEN IF YOU'RE TUNING IN FOR MANY TIMES OVER THE PAST WEEK OR SO, THE IDEA OF CHINA STIMULUS AND FOLLOWING THE WORLD AROUND THE CLOCK, BIG MARKET SWINGS FOR TECH NAMES, WHAT HAS HAPPENED OVERNIGHT? >> CHINA REOPENED ITS MARKET IN ANTICIPATION OF SOME REALLY BUILDING UP. EVERYONE WAS EXCITED ABOUT WHAT WOULD HAPPEN BECAUSE WE SAW THIS RALLY THAT WAS POWERED BY THE MASSIVE STIMULUS. AS WE SAW, INVESTORS WERE DISAPPOINTED. CHINA HELD A PRESS CONFERENCE SAYING THEY ARE CONFIDENT THEY WILL REACH THEIR GROWTH GOALS AND THEY WERE PROMISED SUPPORT GROWTH BUT STOPPED SHORT OF ISSUING MORE STIMULUS. INVESTORS REALLY UNDERWHELMED
BY THAT. THE BENCHMARK CSI CLOSING ROUND 6%. THAT IS AFTER THE POP OF 11%. THE HANG SENG INDEX, THE WORST SINCE 2008. YOU LOOK AT THE GOLDEN DRAGON INDEX DOWN BY 6.5%.
THE CONSENSUS IS JUST THAT THEY ARE ALL DISAPPOINTED. OK, NOTHING MUCH IS NEW COMPARED TO THE PREVIOUS ANNOUNCEMENTS. IT LOOKS LIKE THE COMMITMENT TO FISCAL STIMULUS LOOKS WEAKER THAN EXPECTED. IT SHOWS HOW THE OPTIMISM AND CHINA IS QUITE FRAGILE AT THIS POINT. CAROLINE: ISABELLE LEE WITH A WRAP UP OF WHAT IS HAPPENING FOR CHINA NAMES. JP MORGAN CHAIRMAN CEO JAMIE
DIMON SAT DOWN FOR AN EXPOSE OF INTERVIEW WITH LISA ABRAMOWICZ IN LONDON AT THE 12 EDITION OF THE TEXTILES CONFERENCE IN EUROPE. THIS IS WHAT HE HAD TO SAY ABOUT THE U.S. IPO MARKET. JAMIE: IT MAY STAY WELL MUTED BECAUSE THE MARKETS MAY COME DOWN AS OPPOSED TO GOING UP ENDLESSLY. THEY MAY FIND OTHER SOURCES. I SPEAK TO A LOT OF PRIVATE EQUITY AND PRIVATE VENTURES THEY TELL YOU ABOUT MORE NONPUBLIC SOURCES. EVEN HERE IN THE UNITED STATES WE MADE IT HARDER TO GO PUBLIC.
CAROLINE: LET'S BEGIN OF THAT. MATT GEHL, GREAT TO HAVE YOU HERE. WE SEEM TO BE SEEING THE SAME. LARGE FINTECHS WE ARE WAITING FOR WITH BATED BREATH. YOU THINK ABOUT STRIPE AND REV OLUTE.
THEY CAN ALL TAP A SECONDARY MARKET. MATT: I THINK IT WILL CONTINUE. I THINK IN THE SECONDARY DEALS IT'S A SIGNAL OF STRENGTH OF THE MARKET. THESE COMPANIES ARE ABLE TO GO OUT THERE, ABLE TO GIVE LIQUIDITY TO SOME OF THE EARLIER INVESTORS AND PUT A FAIRLY ATTRACTIVE VALUATION OF THE COMPANY AND REMOVE SOME OF THE TIME PRESSURE TO HAVING TO GO PUBLIC.
THERE IS STRONG INTENT OF THESE COMPANIES TO GET PUBLIC IN THE NEAR TO MEDIUM TERM BUT BY DOING THE SECONDARY DEALS THEY KNOW EXACTLY WHEN THEY ARE READY AND NOT BE FORCED INTO A WINDOW. THEY MIGHT BE CHALLENGED WITH SOME OF THE MACRO AND GEOPOLITICAL ISSUES WE ARE FACING IN THE NEXT SIX TO 12 MONTHS. CAROLINE: AMID THAT UNCERTAINTY, DO THEY DO AN IPO AND WHERE? DO THEY COME TO THE U.S. GIVEN THE LIQUIDITY HERE? MATT: THE U.S. HAS BECOME THE DEFAULT FOR A
BUSINESS WITH A GLOBAL FOOTPRINT. YOU HAVE THE ABILITY TO GO PUBLIC WHEREVER YOU SO CHOOSE. THE U.S. IS THE DEEPEST AND RICHEST AND
MOST OPEN AND MOST REGULARLY OF ALL THE IPO MARKETS THAT ARE THERE. FOR EUROPEAN BUSINESS THAT HAS A GLOBAL FOOTPRINT, THE U.S. IS THE FIRST, SECOND AND THIRD OPTION THEY ARE THINKING ABOUT. MOST ARE TRYING TO KEEP
OPTIONALITY AND COMPANIES THAT HAVE MORE OF A EUROPEAN CENTRIC FOOTPRINT. THEY ARE DEFINITELY KEEPING THE OPTIONS OPEN FOR THE EUROPEAN DEAL. FOR LARGER COMPANIES WITH EUROPEAN HOMEGROUND, THOSE ARE DEALS WE THINK WILL BE ABLE TO GET DONE IN EUROPE AND THE NEXT 12 TO 24 MONTHS. ED: IT IS ED IN SAN FRANCISCO. WHEN I LEFT LONDON SIX YEARS AGO, IT WAS THE SAME FINTECH NAMES THAT WERE THE SHINING LIGHTS OF EUROPEAN TACH. STILL THE SAME NAMES NOW.
FOR ALL THE ANALYSTS THAT YOUR DESK AND YOU'RE THINKING ABOUT THE NEXT BIG THING, IS THERE ANYTHING ELSE OUT THERE IN YOUR NECK OF THE WOODS, IN INDUSTRIALS, HARDTACK, CHIPS -- HARD TECH CHIPS,? MATT: YOU SAID IT RIGHT. THEY HAVE GOTTEN A LOT BIGGER . THAT'S A VERY GOOD THING. WHEN THEY GO PUBLIC, THAT WILL BE VERY POSITIVE FOR THE OVERALL MARKETS. WE ARE SEEING A LOT OF INVESTMENTS INTO NEW AREAS. BDEEP TECH IS THE BUZZ WORD IN EUROPE. EVERY THING FROM THE EUROPEAN
VERSIONS OF THE LLM'S. WE ARE SEEING NEW INVESTMENT IN CHIP COMPANIES, INTO INDUSTRIAL SOFTWARE COMPANIES. WE HAVE WIDENED THE FOCUS IN EUROPE BEYOND JUST FINTECH INTO TRADITIONAL ENTERPRISE SOFTWARE. THERE WILL BE A NET IN A FIT
FOR THE ECOSYSTEM AS WE LOOK OUT TWO TO FOUR YEARS. ED: IN THE CONTEXT OF TECHNOLOGY WHAT IS THE FUTURE FOR LONDON'S EQUITY CAPITAL MARKET? IS THERE EVIDENCE THAT IN THE POST-BREXIT WORLD IT IS A GREAT PLACE TO DO IT TECH IPO? MATT: IT COULD BE A GREAT PLACE TO DO IT TECH IPO FOR THE RIGHT COMPANY. IF IT IS A BRITISH-BASED COMPANY THAT HAS A GLOBAL FOOTPRINT, A VERY NATURALISTIC LOCATION WILL BE THE U.S.
IT HAS THE DEEPEST INVESTOR BASE. IT WILL GET YOU THE BEST VALUATION. THAT WAS A HUGE SUCCESS FOR ARM. IF IT'S MORE EUROPEAN, MORE U.K.-CENTRIC, IT HAS TO COME UP
WITH A SIZABLE OFFERING AND A LOT OF LIQUIDITY. THERE IS AN INVESTOR BASE BUT IT NEEDS TO BE THE RIGHT TYPE OF COMPANY TO GO PUBLIC IN THE U.K. AT THE RIGHT TIME. CAROLINE: LET'S TALK ABOUT ARM. THEY HAVE OFTEN TAKEN QUESTIONS AS TO WHETHER THEY ARE DOING ANOTHER OFFERING, A SECONDARY LISTING IN THE U.K. WE ARE THINKING IT MIGHT BE GETTING IN THE MIX OF WHAT WE ARE IN TERMS OF M&A AS WELL.
WHAT DO YOU HEAR? MATT: THE ARM IPO HAS BEEN A HUGE SUCCESS IN THE U.S. IN THE MONTHS AND QUARTERS AFTER AN IPO LIKE TO CONCENTRATE ON LIQUIDITY AND A SINGLE MARKET. THAT HAS BEEN THE FOCUS FOR THE COMPANY. OVER TIME IT COULD MAKE SENSE TO OPEN UP ANOTHER LISTING, JUST LIKE MOST EUROPEAN COMPANIES HAVE ADR'S LISTED IN THE U.S. I THINK THAT IS SOMETHING THEY ARE THINKING ABOUT DOING IN THE NEAR TO MEDIUM TERM.
IT IS NOT EMINENT. FROM AN M&A STANDPOINT, ARM HAS NOT BEEN A TERRIBLY INQUISITIVE COMPANY. BECAUSE THEY HAVE BECOME CENTRAL TO THE ECOSYSTEM AND MORE ACTIVITIES HAPPENING AROUND M&A AND SEMICONDUCTORS, YOU CAN'T PUT IT PAST THEM. ARM HAS BEEN THE SWITZERLAND OF SEMICONDUCTORS. THEY ARE NEUTRAL AND SELL TO
EVERYBODY. BEFORE CONSIDERING AN M&A THEY HAVE TO MAKE SURE THEY ARE NOT CREATING A SITUATION WHERE THEY ARE COMPETING WITH THEIR CUSTOMERS. CAROLINE: THERE LIES A LARGE COMPANY, WHAT YOU CAN DO FROM A JP MORGAN PERSPECTIVE IN TERMS OF SECONDARY LISTINGS AND ADVICE IS HUGE. WHAT ABOUT THE COMPANIES COMING THROUGH THE RANKS THAT ARE GETTING THEMSELVES VC FUNDING? HOW ARE YOU LOOKING TO SERVE THEM OR WHO HAS COME TO FILL THE VOID OF SILICON VALLEY BANK? IT I -- IS THAT THE HSBC MAKING THE PURCHASE? MATT: THERE'S AN OPEN MARKET WITH A LOT OF PEOPLE TRYING TO FILL IT. WE HAVE RECENTLY HIRED OVER 50
BANKERS THAT ARE COMPLETELY FOCUSED ON SERVING EARLY-STAGE TECHNOLOGY COMPANIES WITH SERIES I AND ONWARDS -- SERIES A ONWARDS. IT IS NOT JUST BECAUSE WE HAVE DONE THAT BECAUSE WE THINK IF WE CAN ENGAGE WITH THE COMPANY EARLIER IN HIS LIFE AND WE CAN HELP THE COMPANY GROW WHEN THEY NEED TO SUPPORT, THAT CEMENTS THE RELATIONSHIP. YOU GET TO KNOW THE CEO, THE BOARD, THE FOUNDERS. YOU HELP THEM THINK THROUGH
WHAT TO DO AND THEY'RE NOT TELLING AN IPO STORY FOR SOMEONE YOU HAVE NEVER MET BEFORE. IT IS FOR A COMPANY YOU HAVE BEEN WORKING FOR FOR FIVE YEARS. THERE'S A HUGE OPPORTUNITY AS A BANK YOU CAN NEVER GO OUT OF. THAT IS WHAT WE ARE TRYING TO DO A JP MORGAN. ED: WHAT IS THE TECHNOLOGY STORY GOING TO BE IN EUROPE NEXT YEAR? MATT: I THINK THE STORY -- IT IS SUCH A GLOBAL INDUSTRY. VERY MUCH THE SAME AS WHAT WE
SEE IN THE U.S. MARKETS. WE ARE STARTING TO SEE OF RUNNING OUT BEYOND THE MAGNIFICENT SEVEN AND SEEING INVESTORS LOOK MORE TOWARDS THE SMALLER CAP NAMES, THE HIGHER GROWTH NAMES NOT IN THE LARGE-CAP BASKET. WE ARE SEEING SIMILAR THINGS HAPPEN IN EUROPE.
JAMIE NOTED WE MAY SEE A SOMEWHAT MORE MUTED IPO MARKET IN THE FIRST SIX MONTHS OR THE YEAR. WE ARE SEEING A RAMP IN ACTIVITY OF COMPANIES PREPARING TO GO PUBLIC IN THE U.S. AND FOR EUROPEAN COMPANIES. THAT IS HAPPENING FOR COMPANIES TO GO PUBLIC HERE. THE U.S. IS LOOKING BRIGHTER FOR IPOS. MI NOT BE A STAMPEDE BUT 2025 IS SETTING ITSELF UP TO BE BETTER IN 2024 AND CERTAINLY BETTER THAN 2023. CAROLINE: MATT GEHL, THANK YOU. TIKTOK RESPONDED TO THE LAWSUIT
BY 14 STATES ALLEGING HARMFUL FEATURES ON THE PLATFORM FOR CHILDREN. THE COMPANY SAYS WE STRONGLY DISAGREE WITH THESE CLAIMS, MANY OF WHICH WE BELIEVE TO BE INACCURATE AND MISLEADING. WE ARE PROUD OF AND DEEPLY COMMITTED TO THE WORK WE HAVE DONE TO PROTECT TEENS. YOU CAN SEE THAT ON BLOOMBERG.COM. ED: COMING UP ON "BLOOMBERG TECHNOLOGY," THE WORLD'S LARGEST VIRTUAL CLINIC FOR WOMEN AND FAMILIES RAISES $125 MILLION IN A SERIES F ROUND. WE WILL SPEAK WITH THE CEO KATE RYDER.
THIS IS BLOOMBERG TECHNOLOGY. ♪ ♪ CAROLINE: VIRTUAL CLINIC, THE MAVEN CLINIC SAYS IT HAS RAISED $125 MILLION IN HIS LATEST FUNDING ROUND, BRINGING THE VALUATION TO $1.7 BILLION. WE ARE JOINED BY THE CEO. STEP STONE GROUP LEADS THE
ROUND. SEQUOIA COMING ON BOARD. WHAT TO THEY WANT TO SEE YOU DO WITH THE NEW FUNDS? KATE: BIG PLANS, AS YOU CAN IMAGINE. WE ARE REALLY EXCITED TO COMPLETE THIS FUNDRAISING ROUND AT A TIME WHEN THERE'S NEVER BEEN MORE NEEDED IN WOMEN'S AND FAMILIES HEALTH. OVER THE LAST DECADE SINCE WE STARTED WE HAVE BEEN ABLE TO BUILD A CONFIDENCE OF CARE PLATFORM, DELIVER BETTER ACCESS ACROSS FERTILITY, MATERNITY, PEDIATRICS, MENOPAUSE CARE AND THE NEXT DECADE IS ABOUT TRANSFORMATION AND TAKING A LOT OF THE DATA AND DISTRIBUTION POWER WE HAVE TO GO EVEN DEEPER TO TRANSFORM OUTCOMES. CAROLINE:
YOUR CHIEF PRODUCT AND OPERATING OPERATOR SAYS IT IS A TECHNOLOGY PLATFORM AND HEALTH CARE COMPANY IN EQUAL MEASURE. WE CARE ABOUT THE TECHNOLOGY ELEMENT TO A CERTAIN DEGREE ON THE SHOW. WHAT YOU DO WITH THE DATA? IS IT ABOUT ARTIFICIAL INTELLIGENCE? WHERE DOES THE FUNDING GO TO WORK? KATE: FOR US, THE CARE ENGINE THAT POWERS OUR CARE COACHING AND TELEHEALTH AND THE PROVIDERS THAT TAKE CARE OF OUR PATIENTS IS ONE OF THE AREAS WE ARE MOST EXCITED ABOUT. IF YOU CAN IMAGINE ALL OF THE DIFFERENT WAYS AND DIFFERENT DATA POINTS ARE MEMBERS GENERATE ON THE PLATFORM AND THROUGH THIRD-PARTY SOURCES LIKE WEARABLES OR DATA EMR'S. IF OUR PROVIDERS HAVE ACCESS TO THAT, THE CARE BECOMES THAT MUCH BETTER. YOU CAN GET INTO PREDICTING RISK. REALLY YOU SHOULD FEEL HEALTH
CARE IS SUCH A FRAGMENTED INDUSTRY WITH YOUR DATA IN SEMI-DIFFERENT PLACES. I THINK ACROSS ALL JOURNEYS IT WILL START TO FEEL BETTER VERY SOON AS MAY THEN OTHER PLATFORMS START TO REALLY HARNESS THE --MAVEN AND OTHER PLATFORMS HARNESS THE UNDERLYING TECHNOLOGY. ED: MAVEN IS A GREAT EXAMPLE OF TECHNOLOGY AND A DIFFERENT APPROACH TO AN INDUSTRY THAT IS BEHOLDEN TO AN INSURANCE SYSTEM. I ASK ABOUT THIS. HOW DO YOU FIT WITHIN AMERICA'S
INSURANCE SYSTEM SO IN PRACTICE IT IS EASY FOR PARENTS WHO HAVE TO DECIDE CAN I DO THIS? CAN I MAKE USE OF THIS SERVICE IN A WAY THAT I CAN AFFORD IT? KATE: YEAH, GREAT QUESTION. WE TRULY BELIEVE IN AN INDUSTRY AS ESSENTIAL IS HEALTH CARE YOU HAVE TO INNOVATE FROM WITHIN AND PARTNER WITH INSURERS AND PROVIDERS TO DELIVER THE BEST CARE AND EXPERIENCES FOR MEMBERS. FOR US, WE DEPARTED WITH SOME OF THE LARGEST INSURERS. WE ARE HELPING FILL IN A LOT OF GAPS IN ACCESS TO CARE WITH OUR VIRTUAL CARE MODEL. WE ARE ALSO HELPING MEMBERS UNDERSTAND THE BENEFITS, WHAT IS COVERED, WHAT IS NOT. FOR FERTILITY SPECIFICALLY WE ARE THE PAYER. WE HAVE A CARVEOUT MODEL CALLED
MAVEN MANAGE BENEFIT WHERE WE HAVE CONTRACTED WITH DIFFERENT CLINICS, BESTING CLASSIC ON THE COUNTRY. THAT ALSO ALLOWS MEMBERS TO HAVE A REALLY TRANSPARENT EXPERIENCE WHILE MANAGING THEIR FERTILITY JOURNEYS AND KNOW EXACT HOW MUCH EVERYTHING COSTS, GET THE VIRTUAL CARE AND COACHING THROUGH MAVEN, AND WE ARE REALLY PARTED WITH THE HEALTH INSURER TO HELP THEM HAVE THE HEALTHIEST OUTCOME POSSIBLE DURING THEIR PREGNANCY AND GET ALL THE RIGHT ACCESS TO BENEFITS. ED: CAROLINE ASKED WHAT THE INVESTORS IN THE SERIES F WANTED TO SEE. THE OTHER QUESTION TO FINISH THIS CONVERSATION THAT COMES OUT OF THE SERIES F IS WHEN IS YOUR COMPANY GOING TO STAND ON ITS OWN TWO FEET? MAKE MEANINGFUL REVENUE? THE BUSINESS MODELS SUPPORT YOUR BUSINESS WHEN? KATE: I WOULD LIKE TO THINK WE ARE STANDING ON HER OWN TWO FEET TODAY. IF YOU'RE ASKING ABOUT GOING PUBLIC, IT IS CERTAINLY -- WE WANT TO BE A PUBLIC COMPANY ONE DAY. IT'S REALLY IMPORTANT THAT WE
CENTER WOMEN AND FAMILIES AT THE CENTER OF OUR CARE MODEL AND FOR US TO REMAIN INDEPENDENT. WE ARE HEADS DOWN ON OUR PRODUCT GROWTH ROADMAP. THERE IS SO MUCH LEFT TO BUILD. WE ARE TAKING A FEW MORE BIG
BETS FIRST. THE PUBLIC MARKETS IS WHERE WE INTEND TO HEAD. ED: KATE RYDER, PRAY TO HAVE YOU BACK ON "BLOOMBERG TECHNOLOGY." CONGRATS ON THE ROUND. RADICAL VENTURES IS SEEKING NEW AI RESEARCHERS WHO WANT TO START THEIR OWN COMPANY, OFFERING A $250,000 INCENTIVE IN COMPUTER CREDITS TO TRY OUT NEW IDEAS. THE PROGRAM IS SAID TO GIVE
AWAY $4 MILLION TOTAL. THE TORONTO FIRM HAS $1.8 BILLION UNDER MANAGEMENT AND USUALLY -- AN UNUSUALLY CLOSE TIE TO AI LUMINARIES LIKE FEIFEI LI AND PIONEER JEFFREY HINTON. CAROLINE: JUST PICKING UP SOME NOBEL PRIZES. HOW ETSY IS USING AI TO GROW
ITS BUSINESS AND CONSUMERS HOLD BACK ON SPENDING. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: LOOKING NOW AT THE NEXT EDITION OF BLOOMBERG CHIEF USER OFFICER. I SAT DOWN WITH ETSY'S CFO
RACHEL GLASER WHO'S KEEPING THEM FOCUSED ON GROWTH HAS PANDEMIC INFLATION CUTS INTO SPENDING. HERE'S HOW SHE'S USING AI TO HELP. RACHEL: ETSY IS POSITIONED TO BENEFIT FROM AI. FINDING THAT NEEDLE IN A HAYSTACK IS TRICKY. THAT IS WHAT MAKES AT THE DELIGHTFUL TO PEOPLE.
ADDING TO THE TOP FASTEST IS WERE AI CAN BENEFIT US. >> OUR MISSION IS KEEPING COMMERCE HUMAN. AI IS HELPING US BE SUPERHUMAN. IT IS A PARTNERSHIP BETWEEN AI AND HUMANS THAT MAKES ETSY WORK. CAROLINE: AI CAN HELP ETSY CUSTOMERS PERSONALLY SEARCHES AND STEER SHOPPERS MORE DIRECTLY TO ITEMS THAT MAY WANT TO BUY. IT'S ALSO HELPING THE COMPANY IMPROVE RELIABILITY BY PREDICTING DELIVERY TIMES MORE PRECISELY.
THAT DOES NOT SOLVE A LARGE CHALLENGE, GETTING MORE CONSUMERS TO THINK OF ETSY MORE OFTEN AND ULTIMATELY BECOME REPEAT BUYERS. ETSY INVENTED GIFT MODE. RACHEL: GETTING IN THE TOP OF MY CONSIDERATION WHEN YOU THINK" I HAVE A GIFT. I WILL GOOD ETSY. GETTING IT TO BE MORE HABITUAL PROVIDES A PERFECT OPPORTUNITY FOR THAT.
WE GET TO KNOW THE GIFTER AND THE RECIPIENT. IT'S A MORE VIRAL WAY TO INTRODUCE PEOPLE TO AT SEA. CAROLINE: ETSY INTRODUCED GIFT MODE WITH A FLOURISH, ROLLING UP TO AN AUDIENCE OF MILLIONS. >> THAT'S A REALLY GOOD GIFT. >> WE CAN USE ETSY'S NEW GIFT MODE.
>> [] SPEAKING FRENCH -- [SPEAKING FRENCH] CAROLINE: YOU TOOK A FAST BED THIS YEAR AFTER THE SUPER BOWL AD. HOW MUCH IS MARKETING PART OF THE PROCESS? RACHEL I LOVE MARKETING: I WAS TOLD BY ANOTHER CEO OF THE MOST GROWTH ORIENTED CEO BECAUSE I'M A BIG BELIEVER IN SPENDING THAT MONEY TO INCREASE BRAND AWARENESS. A BIG BET ON THE SUPER BOWL AD WAS NEVER INTENDED TO BE AN ROI POSITIVE INVESTMENT. IT WAS A LAUNCH OF A NEW INITIATIVE, A PRODUCT. WE SET A LOT OF TIMES IT WAS A KICKOFF, NOT THE MIC DROP.
CAROLINE: ETSY CFO RICHARD GLASER -- RACHEL GLASER TONIGHT. ED? ED: TIME FOR TALKING TAX. RIVIAN SHARES PLUMMETING LAST WEEK AFTER THEY SLASHED PRODUCTION A MISCOMMUNICATION BETWEEN RIVIAN AND THE SUPPLIER LEFT THE CARMAKER WITHOUT ACCESS TO COPPER WINDINGS, A CORE COMPONENT AND ITS ELECTRIC MOTORS. U.K. IS OPENING AN OFFICE TO SPEED UP APPROVALS OF AI, DRONE AND OTHER NEW TECHNOLOGIES. THE REGULATORY INNOVATION OFFICE IS DESIGNED TO REDUCE THE TIME ON TO RENEW HIS WAY TO GET INVENTIONS TO MARKET -- ENTREPRENEURS WAIT TO GET INVENTIONS TO MARKET. GOOGLE WILL JOINED MICROSOFT AND AMAZON IN NUCLEAR TO FUEL THE AI BOOM. CAROLINE:
WHAT A SHOW. WHAT A LOT OF BREAKING NEWS. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." ED: CHECK OUT THE POD. YOU KNOW WHERE TO FIND IT.
2024-10-09 23:52
