CAROLINE: I AM CAROLINE HYDE IN NEW YORK. >> THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: ALL IN ON AI, ARTIFICIAL INTELLIGENCE AS THE NEXT BIG INVESTMENT IN SILICON VALLEY. A $10 BILLION INVESTMENT IN ONE CREATOR. >> CRYPTO, COINBASE ANNOUNCING LAYOFFS AND WINKLEVOSS PUSHING FOR THE OUSTER OF ANOTHER. CAROLINE: A DENT IN ENGLAND'S FIRST SPACE LAUNCH.
NOT TO THE MOON, THE WORLD SPACE, BUT NOT THE MOON FOR THE MARKETS EITHER, BUT A LATE STAGE RALLY. THE NASDAQ. BIG TECH DOING WELL. WE HAVE BEEN UP THREE STRAIGHT DAYS. THE FOCUS ON THE CHIPMAKERS.
UP 1.3%. THE U.S. OUTPERFORMING THE WORLD. EUROPE DOWN. CHINA ENDING ITS RECENT RUN-UP IN THE STOCK MARKET EXUBERANCE. THE MSCI UP ONLY .2 7%. WERE TRYING TO DECIDE WHETHER THE FEDERAL RESERVE WILL BE CATERING TO TAKING DENT INFLATION WITH THE CPI PRINT THURSDAY AND JP MORGAN TRADERS LOOKING UP AT CPI PRINT COMING IN SOFTER. THE MARKET LIKE THAT AND THAT'S
WHY WE SAW TECHNICAL AND G TECH OFF. THIS IS A MACRO PICTURE. THIS OF THE CRYPTO PERSPECTIVE. ON THE BACK ABOUT MOOD MUSIC IN THE U.S., WE HAVE SEEN A CONTINUED RUN-UP IN BITCOIN AND I WANT TO SHOW YOU FOR THE SEVEN STRAIGHT DAYS THAT WE SEEM TO QUITE UP AGAINST THE U.S. DOLLAR WITH THE COLOR FADING AND MAY BE THE FEDERAL RESERVE WILL TAKE THEIR FOOT OFF THE PETAL IN TERMS OF TACKLING INFLATION. IN FACT, THIS IS THE LONGEST
RUN SINCE FEBRUARY 2022. ED: WHEN I'D LOOK AT THE TECH SECTOR IN THE NASDAQ 100, WE ARE TREADING WATER. AMAZON ONE OF THE BIGGEST GAINERS ON THE NASDAQ 100. WE WILL TALK ABOUT THAT LATER. FIRST U.K. MISSION ENDING IN FAILURE AND LACK OF SUCCESS HITTING THAT START.
GOLDMAN SACHS RAISING THE PRICE TARGET, MAINTAINING A CELL, EFFECTS OF THE STRONGER DOLLAR AND TESLA WITH A PULLBACK , JUST .8% LOWER AFTER RECENT GAINS. I AM FOCUSED ON MICROSOFT. MODEST GAINS ON THAT NEWS FROM MICROSOFT. ACCORDING TO SOURCES, INVESTING AROUND $10 BILLION ARE THINKING INVESTING $10 BILLION INTO OPEN AI, SPECIFICALLY FOCUS ON A CHATBOT.
THEY WILL SPLIT THE INVESTMENT OVER A NUMBER OF YEARS, BUT THE BUSINESS MODEL IS INTERESTING BECAUSE OPEN AI LICENSES CHAT GPT TO DEVELOPERS AND ACCORDING TO REPORTS, MICROSOFT MIGHT SPLIT THE PROFIT FROM OPEN AI, WHICH IS CONFUSING GIVEN THE BUSINESS MODEL. IT WAS SUPPORTIVE FOR THE STOCK ON TUESDAY. CAROLINE: IT WAS THE TALK OF THE TOWN IN THE WORLD, EVERYONE WATCHING WHETHER MICROSOFT WOULD PUT AN ENORMOUS CHUNK OF CHANGE TO WORK WHEN IT COMES TO CHAT GPT. LET'S TALK ABOUT IT WITH OUR GUESTS. TALK US THROUGH WHITE MICROSOFT WOULD PUT SUCH A SIGNIFICANT AMOUNT OF MONEY TO YES DISTRIBUTE IT OVER SEVERAL YEARS, BLANCO INTO THIS? IS IT ALL ABOUT BEING? >> IT'S NOT ABOUT BING, BUT EVERY PRODUCT THEY HAVE. EVERYBODY'S BEEN TALKING ABOUT AI, WATSON, BUT THIS INVESTMENT SHOWS IT IS THE SEASON FOR AI GOING FORWARD BECAUSE ONE OF THE THINGS YOU HAVE IS A CUSTOMER THAT IS -- NOW YOU NEED TO GET SOMETHING IN RETURN TO THAT PERSON TO ENHANCE THE PRODUCTIVITY.
AI IS ONE WAY TO DO IT. WHETHER IT IS SALES AUTOMATION, EMAIL, OFFICE, ANY SOFTWARE MICROSOFT HAS COME OF THIS CAN ENHANCE THE PRODUCTIVITY OF THAT APPLICATION. ED: YOUR REPORT SUGGESTS THIS TRANSACTION COULD VALUE OPEN AI AT $29 BILLION. I POINT OUT THAT OPEN AI AND MICROSOFT DECLINED TO COMMENT ON THE STORY, BASED ON BLOOMBERG SOURCES. IS THIS CHAT GPT THE NEXT BIG DEVELOPMENT IN GLOBAL TECHNOLOGY? WILL THIS BE THE STORY OF THE YEAR FOR HER WORLD? >> IT'S NOT JUST CHAT GPT, BUT A QUESTION OF WHETHER THERE ARE CERTAIN ADVANCEMENTS IN AI, NATURAL LANGUAGE PROCESSING AND THE VISION, OTHER AREAS. WHAT CAN YOU DO IN YOUR NORMAL DAY-TO-DAY? THEY WILL NOT SELL THIS TO SOMEBODY AS A STANDALONE THING, BUT LET'S IMAGINE YOU HAVE SOMETHING IN YOUR USING MICROSOFT PRODUCTS TO MANAGE SALES AND YOU WALK IN THE OFFICE IN THE SYSTEM TELLS YOU YOUR HIGHEST PROBABILITY OF CLOSING THE DEAL TODAY IS THIS, BASED ON THE EMAILS, CONVERSATIONS, WHAT IS HAPPENING OUTSIDE.
ALL THOSE THINGS CAN ENHANCE YOUR SOFTWARE WHICH YOU ARE ALLOWED TO SELL MUCH MORE THAN A COMPETITOR LIKE SALESFORCE. CAROLINE: IT IS FASCINATING HOW THIS WILL BE ACCRETIVE. THANK YOU. MEANWHILE, LET'S DIG INTO WHETHER THIS IS A MOVEMENT IN TERMS OF PROFITABILITY, WHETHER THIS IS A PARADIGM SHIFT. OUR GUEST IS THE MANAGING
DIRECTOR AT GENERAL CATALYST. YOU HAVE BEEN QUOTED SAYING THAT, TALKING ABOUT HOW THIS MIGHT BE A NEW MOBILE PARADIGM SHIFT, THE MOVE TO AI, GENERATIVE AI TO TALK ABOUT THE OPPORTUNITIES YOU SEE. >> YEAH, HI, EXCITED TO BE HERE. AI HAS BEEN IN THE NEWS LATELY FOR A FEW REASONS. THERE HAS BEEN BREAKTHROUGHS IN
THE FORM OF FOUNDATION MODELS, COMBINED WITH THE USES WE HAVE SEEN RECENTLY. THEY HAVE CAPTURED THE IMAGINATION OF DEVELOPERS. THIS DEVELOPER ATTENTION IS A GREAT SIGN OF AN EMERGING ECOSYSTEM. WE ARE SEEING THESE MODELS ARE IN THE LARGER CLASS OF BUILDERS. THESE ARE ALL AI SYSTEMS MAY BE BEFORE A LOT OF TECHNICAL EXPERTISE THAT WAS MOSTLY PHD FOLKS WORKING FOR REALLY BIG COMPANIES. NOW IT IS A QUESTION OF
IMAGINATION. OPEN AI IS ONE OF THE COMPANIES DRIVING THIS INNOVATION. WE ARE STILL IN EARLY DAYS. WE ARE SEEING YOUNG, TECHNICAL, GEN Z FOUNDERS.
ONE OUT OF THREE WHO WALK INTO OUR OFFICE ARE PITCHING US IDEAS. >> WE HAVE HAD A LOT OF FUN WITH CHAT GPT. WE GET THE USE CASES. WE ARE INTERESTED IN THE
BUSINESS MODEL AND THE VALUATION , THE REPORTED VALUATION FOR OPEN AI, $29 BILLION, BUT OPEN AI LICENSES CHAT GPT AND THE UNDERLYING ALGORITHMS TO DEVELOPERS. AS A VENTURE CAPITALIST, WHY IS THIS AN ATTRACTIVE POTENTIAL INVESTMENT? NIKO: I CAN'T COMMENT ON THAT PARTICULAR TRANSACTION. I SPEND MY TIME ON THINGS THAT ARE EARLY-STAGE AI, THE NEW PARADIGM WE HAVE BEEN WAITING FOR, FOR MOBILE, FOR CLOUD. IT WILL CHANGE EVERYTHING WE KNOW. IT IS NOW HAPPENING FOR TWO MAJOR REASONS, ESPECIALLY ALL THINGS GENERATIVE AI COME THAT THE OUTPUT WILL HAVE CLEAR PRACTICAL APPLICATIONS. IF YOU ARE A CREATIVE PERSON, YOU HAVE THIS SET OF SUPER INTELLIGENCE THAT CAN HELP YOU WITH IDEAS AND GENERALLY HELP YOU BE MORE CREATIVE AND PRODUCTIVE SO YOU CAN SEE RESULTS RIGHT AWAY, QUICKLY AND CHEAPLY.
YOU CAN INTERACT WITH THESE AI MODELS THROUGH NATURAL LANGUAGE. YOU DON'T HAVE TO LEARN APPLICATIONS TO USE THEM. CAROLINE: WHAT IS SO INTERESTING IS THAT GOOGLE, MICROSOFT, THESE COMPANIES ARE AI EXPERTS AND HAVE DOMINATED THE FIELD IN THE SPACE FOR A LONG TIME, BUT AS IT IN THE PR HEADACHES THAT GENERATIVE AI HAS EXPOSED THEM TO IN THE PAST THAT HAS LEFT SPACE FOR SOME OF THIS REALLY EXCITING START UP TO BREATHE WITHIN AI? >> ABSOLUTELY.
WHEN YOU HAVE FOUNDERS WHO CAN DO THIS WITH FOUNDATIONAL AI MODELS AND IT IS A QUESTION OF IMAGINATION, THEY WILL BE ABLE TO BUILD WHATEVER THEY HAVE IN MIND. THEY WILL REINVENT. THEY WILL REINVENT HOW THEY WOULD DO THEIR HOMEWORK. THEY WILL REINVENT HOW TO BUILD GAMES. IF YOU WORK FOR A BIG COMPANY, IT IS TRICKY TO BUILD NEW PRODUCTS, BECAUSE AT THE MINIMUM YOU NEED TO ASK YOUR -- GC BELIEVES IN RESPONSIBLE INNOVATION, OUR INVESTMENT THESIS, AND WE ONLY INVEST WITH FOLKS WHO HAVE GOOD ETHICS AND INTEGRITY. THIS WAY OF MOVING QUICKLY AND BREAKING THINGS WAS THE ERA BUILDING PRODUCTS IN SILICON VALLEY IN THE PAST HAS COME TO AN END. A NEW GENERATION OF FOUNDERS DO
NOT EMBRACE THAT IT DOES. ED: WE HAVE JUST 30 SECONDS HERE. WHAT HAVE YOU USED CHAT GPT FOR, YOUR FAVORITE USE CASE? NIKO: TO PUT TOGETHER INVESTMENT MEMOS. AMAZING. I HAVE TO DO IT. IT IS PART OF MY JOB. AND WITH CHAT GPT I CAN DO IT IN THREE MINUTES. ED: THAT IS CHEATING. THAT IS INCREDIBLY PRAGMATIC. WE WILL HAVE YOU ON AGAIN A FOR A MORE ROBUST DISCUSSION ON THAT. THANK YOU VERY MUCH. YOU EXPECT SOMETHING MORE
EXCITING. COMING UP, WHAT IS THE FUTURE OF MEME STOCKS AS BED, BATH, AND BEYOND CATCHES ATTENTION. WE WILL DISCUSS THIS NEXT WITH >> IN TERMS OF A COMPANY THAT WILL PROBABLY GO OVER THE BRIDGE, ONE COMPANY COMES TO MIND, IT IS BED, BATH & BEYOND. I THINK THEY WILL NOT BE AROUND ONE YEAR FROM NOW. THEY HAVE TOO MUCH DEBT. THEY ARE IRRELEVANT.
AND BY THE WAY, THE HOUSING MARKET HAS FALLEN OFF A CLIFF, AND THAT WILL NOT HELP EITHER. CAROLINE: OUR MARKETS ANALYST, PRETTY GRIM ABOUT BED, BATH & BEYOND, THE FUNDAMENTALS AT LEAST. LET'S LOOK AT THE SHARES, BECAUSE DESPITE THE FUNDAMENTAL STORY, WORRYING ABOUT BANKRUPTCY , THE COMPANY CLOSING UP 28%, YES, JUST TWO DOLLARS, BUT 28% AND CONTINUES TO RALLY ON THE BACK OF MEME STOCK INVESTING. IS IT BACK? RISHI KHANNA IS WITH US, THE CEO OF STOCKTWITS, A REAL-TIME SOCIAL NETWORK.
WE ASKED OUR AUDIENCE WHETHER THEY THINK IT IS BACK. NO, IT WOULD SEEM THAT THE TWITTER POLL SAID THE TREND IS DEAD. WHAT ARE YOU SEEING IN TERMS OF A DESIRE TO BE BACKING THESE MEME AGAIN? RISHI: THE TREND WHEN COMPARED TO THE CONTEXT OF 2021 AND THE GAMESTOP THE IESCO, I DON'T THINK WE WILL SEE THOSE -- FIASCO, I DON'T THINK WE WILL SEE THOSE AGAIN, BUT BED, BATH & BEYOND AND OTHERS ARE STILL ALIVE AND IN THE WORLD OF THE TRADING AND INVESTING COMMUNITY THAT IS QUITE ACTIVE. THEY ARE STILL THERE. ALIVE AND WELL MIGHT BE AGGRESSIVE. WE JUST SAW THERE ARE A LOT OF
QUESTIONS WHETHER BED, BATH & BEYOND WILL BE ALIVE. WITH THE WIDER THAN EXPECTED LOSS POSTED TODAY AND MISSING REVENUE EXPECTATIONS, THERE IS A LOT OF BEARISH SENTIMENT, BUT THE COMMUNITY IS ACTIVELY TALKING ABOUT IT FROM OUR COMMUNITY. THE MESSAGE VOLUME THE LAST FEW DAYS HAS BEEN EXTREMELY HIGH. WITH MEME STOCKS IN GENERAL, THEY HAVE BEEN MAINTAINED.
AIM FEE STILL FINISHED 2022 AS THE NUMBER ONE MOST TALKED ABOUT STOCK ON STOCKTWITS. IT WAS NUMBER ONE IN 2021 AS WELL. SO STILL AROUND. THE CONVERSATIONS ARE STILL HAPPENING. ED: GOOD TO SEE YOU. WE ARE SHOWING THE TOP STOCK TICKERS ON YOUR PLATFORM, AMC AND OTHER MEME STOCKS, TESLA. I LOVE YOUR JUMPER IT SAYS "NEW YORK OR NOWHERE." RISHI: SWEATSHIRT.
ED: SWEATSHIRT. THERE WE GO. WHEN DO YOU HAVE A HEADLINE THAT SAYS X COMPANY HEADED FOR BANKRUPTCY AND YOU SEE A STOP JUMP 28%, WHAT IS DRIVING THE ENERGY ON YOUR PLATFORM? IS IT THE HEARD NARRATIVE? IS IT SHORT-SELLERS? WHAT IS CAUSING VOLUME IN THE CONVERSATION? RISHI: THE VOLATILITY AROUND IT, RIGHT? THE COMBINATION OF THOSE. YOU HAVE THE SHORT-SELLERS IN THOSE WHO ARE FUNDAMENTAL INVESTORS AND TELLING US ALL THE REASONS WHY BED, BATH & BEYOND LIKELY MAY NOT BE AROUND IN A YEAR OR NOT. AT THE SAME TIME, YOU HAVE THOSE THAT LOOK AT THE PRICE ACTION AND BELIEVE IN THE OPPORTUNITIES AND GET TOGETHER AND SAY HEY, THIS IS A COMPANY THAT CAN BE REORGANIZED. WHAT VALUE CAN BE FIND IN THIS? THE CONVERSATION REMAINS.
THERE IS PASSION AROUND, TODAY'S MOVE, WE DON'T KNOW. IT WAS A BIG MOVE ON A PERCENTAGE BASIS, IS THAT SHORT COVERING FROM THE LOWS LAST WEEK? THE ANNOUNCEMENT LAST WEEK, RIGHT? SO SELL ON THE NEWS. COVER ON THE NEWS. THE CO CONVERSATION CONTINUES TO HAPPEN AND IT IS THE DISCOVERY PROCESS BETWEEN THE BEARS AND BULLS, AND WHILE THIS SENTIMENT IS ACTUALLY BEARS NOW, THE CONVERSATION STILL HAPPENS. MARKETS ARE ALIVE AND PEOPLE ARE STILL TRADING IT. THE VOLUMES ARE THERE. CAROLINE: I DID NOT REALIZE IT WAS
STOCKTWITS THAT CAME UP WITH THE HASHTAG. WHAT WAS SO INTERESTING IN THE ACTIVE NAMES IN YOUR PLATFORM? A LOT WERE TV'S, NOT JUST TESLA -- EV'S NOT JUST TESLA, BUT OTHERS. IS THE TREND AI? CAN YOU SEE THE BEGINNING OF PICKUPS INSERT NARRATIVES? RISHI: SPEAKING OF AI, RIGHT, I JUST SAW A SEGMENT THAT WAS FASCINATING, ALTHOUGH I'VE ONLY USED FOR REPORTING JUST FAR, YOU LOOK AT THAT AND THAT IS AN AREA WE WANT TO INVEST INTO HELP US UNDERSTAND BETTER ALL THE DATA IN THE CONTENT WE HAVE.
WE HAVE OUR SENTIMENT ANALYTICS AND OTHER THINGS, BUT YOU CAN START TO SEE TRENDS. MAYBE NOT FAR AHEAD, BUT IN SOME CASES, A LITTLE BIT AHEAD OF WHAT MAY BE THE MAINSTREAM MEDIA PICKS UP ON. EVS IS AN INTERESTING SPACE BECAUSE EVS A LOT WENT PUBLIC THROUGH SPAC'S, SO THERE IS A LOT OF PASSION FOR EVS.
TESLA IS THE GODFATHER OF NOT ALL STOCKS, BUT THE EV WORLD. ED: YES. RISHI: YOU HAVE LUCID, FISK AIR, ETC. COME ETC., AND THE CEO OF FISKER IS ACTIVE ON STOCKTWITS. THESE COMPANIES HAVE ROBUST AND HIGHLY ENGAGED FOLLOWINGS BECAUSE THEY GOT IN AT THE SPAC OR HEY, I LOVE TESLA, OR I LOVE THE NEXT PRODUCT TO COME OUT OF FISKER AND THAT WILL DESTROY THEM, OR WHATEVER THE CASE MAY BE.
THESE ARE RETAIL-DRIVEN STOCKS IN THE GENESIS OUT OF THE SPAC WORLD, AND SO, WE WILL CONTINUE, I THINK IN 2022, WE WILL CONTINUE TO SEE CONVERSATION AROUND THE EV WORLD AND THERE IS INTEREST IN THE EV SPACE AND WE WILL SEE WHAT HAPPENS WITH TESLA, AND THAT WILL BE A BELLWETHER FOR THE CONVERSATION THERE. ED: YES. RISHI: I DON'T KNOW THAT AI HAS MADE IT INTO THE PUBLIC STOCK IN PUBLIC MARKET ZEITGEIST, RIGHT? THERE'S NOT A LOT OF COMPANIES YOU WOULD TRADE ON THAT. ED: WHEN THAT MOMENT HAPPENS, COME BACK ON THE SHOW AND LET US KNOW BECAUSE WERE TRYING TO STAY ON TOP OF TRENDS, AND THIS IS THE NEW ERA OF MARKETS ENGAGEMENT. THAT IS THE CEO OF THE SOCIAL PLATFORM STOCKTWITS. THANK YOU VERY MUCH. COMING UP, HOW COVID IS RESHAPING ONE INDUSTRY, THE DEALS COME IN WHERE DIGITAL HEALTH SERVICE ARTS TRAINING.
WE HAVE WILL HAVE A LOOK AT THE DETS NEXT. >> OVER THE LAST THREE YEARS, WE HAVE ADDED $40 BILLION OF ORGANIC REVENUE TO THAT BUSINESS, SO THERE IS TREMENDOUS GROWTH THROUGH INNOVATION, THE DIGITAL FORMULARY, OR THE VIRTUAL CARE CAPABILITIES, AND TAKING IT NOT JUST TO TRIAGE, BUT HEALTH SERVICES OR VIRTUAL PRIMARY CARE FROM THAT STANDPOINT, SO WE SEE TREMENDOUS INTEREST, ADOPTION FOR THE SERVICES. ED: THAT WAS THE CEO OF CIGNA ON EXPANDING DIGITAL HEALTH SERVICES, PART OF AN INTERVIEW FROM J.P. MORGAN HEALTH CARE CONFERENCE IN SAN FRANCISCO, WHICH IS UNDERWAY. WE ARE ON THE GROUND BRAVING THE STORMS, WIND, RAIN, HAIL. IS IT LIKE THAT IN THE CONFERENCE ROOM? >> WELL, IT IS --. I WILL TELL YOU THAT MUCH.
THE RAIN HAS BEEN COMING IN SIDEWAYS. IT IS NOTEWORTHY THERE ARE SO MANY PEOPLE IN SAN FRANCISCO IN THE MIDDLE OF THE STORM. THIS IS THE LARGEST GATHERING OF THE INDUSTRY WE HAVE SEEN IN THREE YEARS, SPEAKING TO THIS IDEA OF THE POST-COVID WORLD AND WHAT THE DIGITAL WORLD LOOKS LIKE IS A KEY THEME AT THIS CONFERENCE, DECIDE THAT YOU HAVE TO HAVE ACCESSIBILITY TO HEALTH CARE REMOTELY IN A MORE EXPANDED WAY, AND OVER THE COURSE OF THE PANDEMIC, A LOT OF PHYSICIANS ARE DEALING WITH BURNOUT. WHAT CAN YOU DO FROM A
TECHNOLOGICAL INNOVATION STANDPOINT TO HELP PROVIDERS IN THE INDUSTRY, BUT REALLY ACCELERATE THE INDUSTRY GOING FORWARD, AND AI IS A BIG THEME THE LAST TWO DAYS HERE. CAROLINE: OF COURSE IT IS. WE HAVE BEEN TALKING ABOUT AI THROUGHOUT THE SHOW. IT WILL BE FRONT AND CENTER IN
HEALTH CARE. WHAT ARE THE APPLICATIONS AND WHAT OTHER AREAS OF TECHNOLOGY ARE BEING TALKED ABOUT? >> ON THE AI FRONT, YOU ARE SEEING DEALS TO HELP EXISTING COMPANIES ACCELERATE THEIR FOOTPRINT. ONE COMPANY ANNOUNCING A $684 MILLION DEAL TO BUY A U.K. COMPANY BASED ON AI. YOU ARE SEEING OTHER DEALS
TAKING SHAPE AS WELL. FOR INSTANCE, THEY ARE RELATIVELY SMALL, ONLY A FEW MILLION DOLLARS WITH ANNOUNCES WEEK, BUT THIS IS STILL AN INDUSTRY THAT HAS BEEN STARRED FOR DEALS OVER THE LAST YEAR. THE 2022 DEALS ANNOUNCED WERE FEWER THAN 2021. BIOFARMA IS THE LOWEST SINCE 2013, SO WE ARE LOOKING TO SEE IF THERE IS PICKED UP IN THE DEALMAKING APPETITE IN 2023. ED:
I THINK I AM RIGHT SAYING YOU SPOKE TO THE CEO OF NOVAVAX RIGHT? WHAT WAS THE TAKE AWAY? >> IT IS FOR THAT COMPANY HOW THEY CAPTURE MORE SHARE OF THE ENDEMIC MARKET, SINCE DURING THE PANDEMIC THEY WERE BEHIND ON THEIR COVID VACCINE, BUT WE HAD AN INTERESTING CONVERSATION AROUND PRICING WAS NOW THAT THAT WILL BE SHIFTED TO THE COMMERCIAL MARKET. TAKE A LISTEN TO WHAT HE SAID ABOUT HIS EXPECTATIONS. >> PFIZER AND MODERNA HAVE SET THE STAGE. THEY SET IT AT A REASONABLE LEVEL.
THE COST-BENEFIT ANALYSIS FOR THAT TYPE OF PRICING, I THINK IT IS REASONABLE. THERE IS ALWAYS A DISCOUNT FROM THAT RANGE, AND EACH COMPANY WILL FIND ITS OWN WAY. >> SO, IT WILL BE A CONVERSATION ABOUT WHAT THAT PRIVATE PRICING LOOKS LIKE AND WHAT THE APPETITE FOR COVID VACCINES WILL STILL CONTINUE TO BE AS WE GET FURTHER AND FURTHER OUT FROM THE MOST ACUTE STAGES OF THE PANDEMIC AND HOW THESE COMPANIES REINVENT THEMSELVES IN A POST-COVID WORLD IS WHERE. CAROLINE: WHERE WE CAN CONTINUE TO BE OPTIMISTIC ABOUT HEALTH CARE, SO MANY APPLICATIONS. WEATHERING IT OUT IN SAN FRANCISCO, THANK YOU. STAY WELL. KEEP DRY.
COMING UP, TALKING ABOUT THE CRYPTO OG. HE IS BEING ACCUSED OF, GET THIS UNETHICAL WORK BY'S GEMINI WINKLEVOSS. MORE ON THAT FIGHT AHEAD. FROM NEW YORK, THIS IS BLOOMBERG. ♪ CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. I AM CAROLINE HYDE IN NEW YORK. AND, ED LUDLOW. IT IS FUN TO BE IN THE SAME
PLACE. WE HAVE BEEN TALKING ABOUT MICROSOFT INVESTING $10 MILLION INTO OPEN AI, PARENT OF CHAD GPT , BUT WHAT ABOUT START UP ACQUISITIONS, BIG DEALS? WE KNOW IT DROPPED, VENTURE BACKED M&A DROPPED, BUT THERE WERE GLIMMERS OF HOPE. KATIE WROTE ABOUT IT FOR BUSINESS. IPOS ARE DEAD, BUT DOES THAT MEAN WE GET MORE M&A? >> EXACTLY. VENTURE CAPITALIST CAN ONLY MAKE MONEY IN TWO WAYS, M&A OR IPOS.
THE IPO WINDOW HAS BEEN LARGELY CLOSED FOR OVER A YEAR SO THAT WILL PUT PRESSURE ON MORE COMPANIES TO SELL. EVEN ADOBE FIGGA, THEY PARTLY SOLD BECAUSE THERE WAS NO IPO WINDOW. IT WAS A GREAT PRICE, $20 BILLION, BUT THERE WAS NO ALTERNATIVE IN THE NEAR-TERM, AND THEY KNEW THAT, SO SOME DEALS WILL SELL ABOVE THEIR LESS PRIVATE VALUATION, BUT WHAT WE WILL PROBABLY SEE MORE OF HIS COMPANIES RECOGNIZING THEY HAVE TO SO FAR BELOW THEIR LESS PRIVATE VALUATION. VALUATIONS ARE DOWN SIGNIFICANTLY.
THERE IS NO IPO WINDOW AND THERE IS A LOT OF INVESTOR SKEPTICISM ABOUT INVESTING AS BEFORE, SO THAT WILL FIX THAT. ED: WE WERE IN VEGAS LAST WEEK, VERY BUSY. YOU ARE VERY BUSY. YOU GO TO ALL THE PARTIES AND KNOW WHO TO TALK TO. I GET A MIXED PICTURE. THERE ARE SOME OPPORTUNITIES IN TERMS OF DEALS THAT CAN GET DONE. VENTURE CAPITALISTS TALK ABOUT SEED STAGE AS THE OPPORTUNITY WHERE YOU CAN MAKE SOME BETS IN AN ENVIRONMENT LIKE THIS IS A BUT WHERE DO YOU EXPECT ACTIVITY TO HAPPEN, AT LEAST IN THE FIRST HALF OF THIS YEAR? >> SURE, CERTAINLY INVESTORS WHO INVEST EARLY ARE LESS PHASED BY THE DIFFICULT EXIT ENVIRONMENT BECAUSE THEY HAVE A LONGER-TERM OUTLOOK, BUT FOR COMPANIES THAT ARE GROWTH STAGE, THEY WILL HAVE TO BE MORE OPEN TO POTENTIAL BUYERS.
THERE ARE 1200 UNICORNS ON PAPER . THAT IS TOO MANY IN THIS ENVIRONMENT, SO WE WILL SEE MORE CONSOLIDATION. I AM HEARING THAT FINTECH WILL CONSOLIDATE BECAUSE THERE ARE TOO MANY PAYMENTS COMPANIES. I ALWAYS HEAR THAT ABOUT CYBERSECURITY. I THINK WE WILL SEE DIFFERENT
START UP ACQUISITIONS. WE WILL SEE STRATEGICS RECOGNIZING THEY WILL GET A LOWER PRICE AS TO THE YEAR BEFORE FOR SOME OF THESE COMPANIES. WE WILL SEE UNICORNS BUYING EACH OTHER IN PRIVATE EQUITY FIRMS BUYING PRIVATE COMPANIES THAT ARE VENTURE-BACKED.
MAYBE THEY SEE SLOWING GROWTH, BUT SEE SOME POTENTIAL TO HELP FIX THEM AND GROW INTO BIGGER BUSINESSES. CAROLINE: WHAT HAS TO HAPPEN IS THERE HAS TO BE MORE OF A MEETING IN THE MIDDLE OF THEM PRETTY SURE LAST YEAR THERE WAS A LOT OF MONEY TO BE PUT TO WORK AND WHAT MANY FELT WERE CHEAP COMPANIES, BUT THE FOUNDERS WILL NOT WANT TO LET GO OF THEIR COMPANY AT THOSE SORTS OF VALUATIONS. WHAT GETS THAT FOUND HER TO REALIZE THEY HAVE TO TAKE THAT PRICE POINT? IS IT THEY ULTIMATELY RUN OUT OF RUNWAY? >> EXACTLY. YOU WILL SEE MORE AND MORE OF THAT. IT MADE A LOT OF COMPANIES RAISED A LOT OF MONEY IN 2021, 2020, SO SOME STILL HAVE QUITE A BIT OF RUNWAY AND MIGHT NOT BE FEELING THAT PRESSURE YET, BUT WAS COMPANIES ARE TO LOOK AND SAY OH, WE HAVE LESS RUNWAY, AND THEN A BIRD IN HAND LOOKS ATTRACTIVE. ED: ALL RIGHT. KATIE, GOOD TO HANG OUT.
COME BACK. MORE SCOOPS, PLEASE BID THAT IS WHAT WE LIKE. WE HAVE HAD A RANGE OF VOICES ON. THE SECOND HALF OF THIS YEAR,
IPOS, IPOS, IPOS, SOME STRONG BALANCE SHEET REVENUE GENERATING COMPANIES, BUT THERE ARE STILL DEALS TO BE DONE, AT LEAST THAT IS THE TAKEAWAY. CAROLINE: IT'S NOT THAT EVERY SINGLE SHOW WILL BE TALKING ABOUT ARTIFICIAL INTELLIGENCE, BUT IT SEEMS LIKE A DOMINANT FORCE FROM THE DEALS WE HAVE BEEN HEARING OUT AND BUY ONE WHERE THE FIRST SERIES WILL SEE THAT CONSOLIDATION KATIE WAS TALKING ABOUT, AND INDEED, THE CRACKS IN THE IPO MARKET. WHAT IS BEING TALKED ABOUT. I FELT WHAT WAS INTERESTING YESTERDAY IS THE SECONDARY MARKET IS STILL RELATIVELY ACTIVE. ED: YES. CAROLINE: THERE WILL STILL BE A LOT OF PEOPLE WORKING FOR THESE COMPANIES THAT NEED TO BE ABLE TO HAVE A LIQUIDITY EVENT. ED: THE SECONDARY MARKET CAN BE A PRECURSOR TO ACTIVITY IN THE IPO MARKET DOWN THE LINE, AND EVS, THAT PLAY IS STILL POPULAR.
MAYBE A BIG YEAR FOR 2023. LET'S TALK CRYPTO. COINBASE, THE LATEST COMPANY TO ANNOUNCE ANOTHER ROUND OF JOB CUTS. MEANWHILE, GEMINI CRYPTO EXCHANGE CAMERON WINKLEVOSS IS CALLING ON THE BOARD OF DCG TO REMOVE THE CEO, ACCUSING HIM OF BAD STALL TACTICS.
BLOOMBERG IS FOLLOWING THESE DEVELOPMENTS. LET'S START WITH THE ACCUSATION, WHAT IS THIS ABOUT? >> WE HAVE SEEN OPEN PUBLIC LETTERS FROM CAMERON WINKLEVOSS THAT ADDRESSES THE GROUP AND THE CEO. GENESIS WAS A PARTNER FOR THE GEMINI PRODUCT, AND WE DO COMES TO THAT PRODUCT, THERE ARE HUNDREDS OF THOUSANDS OF RETAIL INVESTORS THAT HAD EXPOSURE TO THAT LENDING PRODUCT. A LOT OF THINGS HAVE GONE WRONG IN THE LAST COUPLE OF WEEKS, AND NOW YOU HAVE CAMERON WINKLEVOSS CALLING FOR BERRY SILVER TO STEP DOWN AS CEO OF DCG, ACCUSING HIM OF BAD-FAITH TACTICS, GETTING TO THE EDGE OF ACCUSING HIM OF MISLEADING INVESTORS FOR SOMETHING THAT WAS FRAUDULENT.
DCG IMPORTANTLY FIGHTING BACK IN SYNC THIS IS ALSO THE WINKLEVOSS EFFORT TO DEFLECT BLAME OVER DCG. AT THE END OF THE DAY, WHAT YOU HAVE IS TWO COUNTERPARTIES HERE IN A VERY DIFFICULT DECISION, BOTH IN A DIFFICULT POSITION, BOTH ON THEIR OWN AND TOGETHER. CAROLINE: DCG WAS LOOKING BEHIND THE SCENES THEIR CONVERSATIONS WERE MORE PRODUCTIVE. SOME YOU WOULD HOPE MORE CORDIAL, BUT IN PUBLIC, AND AIRING OF GRIEVANCES THAT IS PAINFUL TO SEE. AMID ALL THIS FALLOUT, MANY LOOKING TO OTHER AREAS OF PARIS SILVER'S EMPIRE TO MAKE A BET, RIGHT? GRAYSCALE AND THE BITCOIN TRUST HER? >> THERE HAS BEEN THIS SIGNIFICANT DISCOUNT IN THE GRAYSCALE TRUST. THERE IS THE QUESTION OF WHETHER THEY COULD
TAKE OVER THE GRAYSCALE TRUST. IS IT WORTH BUYING AT THESE DISCOUNTS? THAS THE MEANING OF THE GRAYSCALE TRUST CHANGED? IT WAS ONE OF THE MOST SIGNIFICANT WAYS TO GET ACCESS TO BITCOIN, AND OVER TIME IT BECAME A BIGGER BET ON WHETHER IT WOULD BECOME AN ETF AT SOME JUNCTURE. IF THAT DOES NOT HAPPEN, WHAT IS THE INVESTMENT THESIS AND DOES IT CHANGE? THIS IS BEEN A CASH COW FOR THE DIGITAL CURRENCY GROUP, BUT YOU HAVE TO LOOK AT HOW MUCH IT BECOMES NECESSARY FOR DIGITAL CURRENCY GROUP. WE ARE TALKING ABOUT LAYOFFS ACROSS THE INDUSTRY. DCG, AN OPEN LETTER FROM THE CEO TODAY, FASCINATING TO SEE HIM BE PUBLIC LIKE THIS. HE IS NOT ALL THAT PUBLIC USUALLY. WE HAVE NOT SEEN HIM ON TELEVISION OR TWITTER THAT MUCH.
LIKE WE HAVE SEEN SOME OTHERS, HE WAS TALKING ABOUT HAVING TO CLOSE DOWN A WEALTH MANAGEMENT SUBSIDIARY AND CAUGHT -- CUT COSTS AGGRESSIVELY THE LAST COUPLE OF MONTHS, WHICH MAKES GRAYSCALE EVEN MORE IMPORTANT FOR HIM. ED: CUTS, LAYOFFS, CRYPTO. THOSE OF THE HEADLINES. IT'S TALK ABOUT COINBASE. ANOTHER ROUND OF LAYOFFS.
THE LATEST ROUND OF LAYOFFS. WHAT DO WE KNOW ABOUT THIS PARTICULAR ROUND OF LAYOFFS? >> ONE THING TO LOOK AT IS HOW INVESTORS HAVE REACTED TO IT. THEY REACTED POSITIVELY TO DATE, NOT JUST INVESTORS. YOU HAVE SELL SIDE ANALYSTS REACTING POSITIVELY BECAUSE THEY BELIEVE IT WILL CUTS EXPENSES SIGNIFICANT. ED: WE SEE IT ON THE SCREEN. UP 13% TUESDAY.
TWO ALREADY PERCENT OVER DAYS, SO POSITIVE REACTION. >> POSITIVE REACTION. WILL THIS HELP REDUCE EXPENSES ENOUGH TO MAKE IT THROUGH THE REST OF THIS CRYPTO WINTER WITH THIS DOWNTURN IN TRADING VOLUMES WE ARE SEEING? THE QUESTION FOR COINBASE AND ALL OF THEM, WHAT DOES THIS MEAN FOR THE PRODUCTS THEY ARE BUILDING? DO THEY, ARE THEY ABLE TO REMAIN COMPETITIVE AND OFFER NEW, INNOVATIVE THINGS WHEN YOU ARE WATCHING THESE MASSIVE HEADCOUNT REDUCTIONS? ONE CRYPTO TRADE PUBLICATION HAS COUNTED 27,000 CUTS ACROSS THE INDUSTRY. SO, ALL IN ALL, WITH WHAT WE HAVE SEEN SO FAR, WE DEFINITELY HAVE A LOT OF PAIN OUT THERE, AND HUNDREDS OF PEOPLE ARE COINBASE IN ADDITION TO THE HUNDREDS BEFORE, THE REALITY OF IT IS EVEN PLACES ARE GROWING, THEY CUT THEIR HEADCOUNT, BUT THEY THINK THEY WILL GAIN THAT VECTOR ACQUISITIONS LATER, SO WHAT DID THESE CUTS REALLY MEAN IN TERMS OF HOW THEY ARE TO THE CYCLE? CAROLINE: WELL SAID. YOUR HUSBAND IS A SENIOR MANAGER COINBASE, QUICK DISCLOSURE. IT'S TALK ABOUT THE MOVEMENT OF TALENT WITHIN THIS AT THE MOMENT. WHAT IS SO INTERESTING IS THAT
WHILE MANY IN FINTECH, CRYPTO LOSE THEIR JOBS, THERE ARE AREAS WHERE THEY COULD FIND A HEADHUNTER IN THE FUTURE, AND NOT THE MOST USUAL PLACES. ED: NOT WHAT YOU WOULD EXPECT. CAROLINE: LIQUIDITY, IT IS KNOWN , A MASSIVE DIGITAL MEDIA COMPANY SET UP BY AN X WALL STREET PERSON. ED: WE DO NOT KNOW. CAROLINE: THEY ARE NOW GETTING INTO THE WORLD OF, WELL, JOBS, RIGHT? HEAD HUNTING. ED: ONE OF THE BEST STORIES OF THE DAY, LIQUIDITY PARTNERING WITH WHITNEY PARTNERS, A CLASSIC HEADHUNTER. WHAT IS SO INTERESTING ABOUT CRYPTO, JOB CUTS, WHAT LIQUIDITY HAS DONE IS AMAZING. THEY GET FED INFORMATION BY EVERYONE WORKING IN FINANCE ABOUT OPENINGS TO SALARIES, RAISES AND HAVE TAKEN THAT IN SAID WE WILL HELP YOU MOVE FORWARD. IT IS AN ASTONISHING PLATFORM.
IT IS RIDICULE, MEME, AND SET OUR FOCUS, BUT IS LIQUIDITY KNOWN OPTION OF PEOPLE LOOKING FOR A JOB? ED: IT SPEAKS TO THE GROWTH OF WHERE YOU CAN TAKE A SOCIAL MEDIA STARTUP. ED: IT LITERALLY IS A SOCIAL MEDIA STARTUP. CAROLINE: THAT BECOMES A DIGITAL MEDIA COMPANY. THE FOUNDER HAS GONE INTO ANGEL INVESTING AND HAS NOW STARTED TO THINK HOW CAN I EXPAND AND SERVE THIS PARTICULAR COMMUNITY OF JUNIOR BANKERS, MANY JUNIOR LOOKING FOR EXPERTISE? THEY SAID, WELL, IT WAS DIGITAL ADVERTISING THE PEOPLE KEPT COMING TO THE PARTICULAR ROUND FOSTERING THEIR OWN SKILL-BASED, BEING ABLE TO UP SKILL IN FIND OUT THE VIEW ON JOBS AND ENHANCE THEIR OWN EXPERIENCE, SO IT LOOKS AS THOUGH MILLENNIALS AND MAY BE GEN Z ARE LOOKING NOT JUST TO THE INTERNET, BUT THE INSTAGRAMMING SOCIAL MEDIA. ED: I AM A FOLLOWER OF STOCKTWI TS, DON'T PUT US OUT OF A JOB, PLEASE. CAROLINE: COMING UP, CHANGING OF THE GUARD, INTERNET AD GIANTS SHAKEUP. THIS IS BLOOMBERG.
ED: I WANT TO LOOK AT SOME OF THE TECH NAMES THAT RELY ON ADVERTISING FOR REVENUE. 2022 WAS A PIVOTAL YEAR WITH THE WAR IN UKRAINE THAT DENTED THE CONFIDENCE OF ADVERTISERS IN EUROPE AND CHANGES IN THE INDUSTRY WITH ELON MUSK BUYING TWITTER. YOU CAN SEE THE STATE OF PLAY BEHIND ME FOR WHAT ANALYSTS THINK THE END OF 2022 WILL BE IN TERMS OF SALES AS WE WAIT FOR THOSE EARNINGS REPORTS FROM THE LAST THREE MONTHS OF THE YEAR, BUT WE ARE ALSO THINKING ABOUT HOW MARKETSHARE MIGHT CHANGE IN THE WORLD OF ADVERTISING HAS CHANGED BECAUSE CONSUMER TRENDS HAVE CHANGED. THIS IS DATA FROM BLOOMBERG DILIGENCE ON WHERE MARKETSHARE LIES, ALPHABET, GOOGLE SEARCH, BUT DON'T FORGET YOUTUBE, DOMINATES IN THE TECH SPACE AWAY FROM TRADITIONAL TECH. THIS DATA EXCLUDES CHINA, BY THE WAY, WHERE THERE ARE OTHER PLAYERS WHEN IT COMES TO CERTAIN DOMESTIC PRODUCTS. YOU LOOK AT META. SOME SEE IT AS A TOP PICK FOR
2023 BECAUSE WE HAVE A LOW BASE AND MIGHT SEE A REBOUND. THERE ARE THE OPTIMIST WHO LOOK AT AMAZON AND SAY THAT IT'S A SLEEPING GIANT WHEN IT COMES TO ADVERTISING. IT IS INTERESTING TO TAKE THIS AS AN INFLECTION POINT IN 2022 TO 2023 BECAUSE THAT IS A SNAPSHOT OF THE YEAR AS A WHOLE, BUT WHAT WE KNOW IN THE FINAL THREE MONTHS OF THE USE YEAR, LAST YEAR, THIS YEAR, BUT DATA IS CHANGING AND WE MIGHT SEE NEW NAMES EMERGE IN LEGACY NAME SUFFER AS THE ADVERTISING SPACE CHANGES. CAROLINE: IN THE ADVERTISING SPACE OF RICHLY CHANGING IN TERMS OF PLAYERS, NOT ONLY WITH THE WELL, THE TIKTOKS TAKING MARKET SHARE, BUT TV, NETFLIXS OF THIS WORLD AND KEY ADVERTISING SPACE, AMAZON.
A GREAT STORY ON THE TERMINAL TODAY, AND SARAH FRIER ONE OF THE KEY EDITORS TO TALK US THROUGH THIS AND OTHER SOCIAL PLAYERS TODAY. TALK TO US ABOUT THE CHANGING OF THE GARDEN HOW MUCH PEOPLE ARE ANTICIPATING THIS FOR 2023. >> WILL FOR THE FIRST TIME IN 2022, WE SAW THAT META AND GOOGLE TOGETHER ARE LESS THAN HALF OF THE AD MARKET. THAT HAS NOT HAPPENED SINCE 2015. THEY EXPECT THAT SHARE TO
CONTINUE TO ERODE INTO 2023 AND BEYOND. THAT IS DUE TO A NUMBER OF FACTORS, THE RISE OF MORE OPTIONS ON TV AND WITH E-COMMERCE PLAYERS LIKE AMAZON AND WALMART, BUT ALSO BECAUSE OF SOME OF THE CHALLENGES IN THE MARKET. BEYOND THIS CONDITION IS DUE TO UKRAINE AND OTHER ECONOMIC FACTORS, YOU HAVE THE FACT THAT THERE SIMPLY -- ADVERTISING IS NOT AS EFFECTIVE ANYMORE, BECAUSE APPLE HAS INSTITUTED TRACKING CHANGES THAT THEY CANNOT GET AS MUCH PERSONAL INFORMATION TO TARGET THOSE ADS EFFECTIVELY, SO THE SAME ADS ARE NOT AS USEFUL TO ADVERTISERS, THAT THEY HAVE BEEN LOOKING FOR ELSEWHERE TO PUT THEIR MONEY. IT IS REALLY DIFFICULT FOR THESE BIG PLAYERS WHO AT THE SAME TIME ARE UNDER SCRUTINY BY REGULATORS , ESPECIALLY FOR ANTITRUST, AND PRIVACY, SO IT IS GOING TO BE DIFFERENT GOING FORWARD. THEY MAY NOT BE THIS BIG, SCARY DUOPOLY THAT REGULATORS HAVE BEEN TELLING US ABOUT FOR SO LONG.
THAT SHARE MAY ERODE AND WE MAY SEE PLAYERS LIKE AMAZON, NETFLIX, AND TIKTOK TAKE UP MORE. CAROLINE: WE HAVE BEEN TALKING ABOUT THE DATA THAT HAS DISAPPEARED FROM THE LIKES OF META AND THE ABILITY TO TRACK CERTAIN PEOPLE, GIVEN APPLE'S CHANGES, BUT ALSO THERE IS SOME SELF-REGULATION GOING ON PERHAPS AS WELL AS TO WHO THEY TARGET AND HOW THEY TARGET. THERE IS A GREAT PIECE TODAY ABOUT TEENAGER'S GENDER AND WHETHER THAT CAN BE THOUGHT OF AS AN ADVERTISING PIECE FOR MARKETERS AND NOW THEY CAP LOOK AT THAT. SARAH:
META IS TRYING TO IMPROVE THE WAY IT MANAGES TEENAGERS ON THE PLATFORM AFTER A LOT OF SCRUTINY. WE HAVE HEARD ABOUT MENTAL HEALTH ONLINE AND HOW INSTAGRAMMING PARTICULAR HAS BEEN AFFECTING TEEN MENTAL HEALTH. THERE IS A LOT OF PUSHBACK FROM ADVOCATES AND REGULATORS WHO HAVE BEEN REDUCING THE AD TARGETING CAPABILITIES FOR TEENAGERS, SO GENDER IS ONE OF THOSE CATEGORIES. THEY ALSO REDUCE THE ABILITY TO TARGET TEENAGERS BASED ON PAST BEHAVIOR, AND THAT IS AN ATTEMPT TO TRY TO MAKE THEIR INTERNET EXPERIENCE A LITTLE BIT SAFER. AND THEY DID NOT GO DIRECTLY TO A PARTICULAR CATALYST. META THAT HAD BEEN A THEME FOR THE
PAST FEW YEARS, AND THEY REALIZE IT THE WAY YOUNG PEOPLE ARE OPERATING ON THEIR APP IS A MATTER OF GREAT CONCERN TO PARENTS AND REGULATORS MAY NEED TO DO SOMETHING ABOUT IT. ED: LEADING OUR BIG TECH COVERAGE OUT OF SAN FRANCISCO, SARAH FRIER. THANK YOU SO MUCH. COMING UP WHAT HAPPENED AT ENGLAND'S FIRST SPACE LAUNCH. THE FIRST SPACE LAUNCH BY THE U.K. HAD A MISS HAP. YOU CAN SEE IT. THAT IS NEXT. THIS IS BLOOMBERG. CAROLINE: GOING VIRAL FOR A NEGATIVE REASON TODAY. VIRGIN ORBIT FELL IN TERMS OF
SHARE PRICE 20%, AFTER THE FIRST LAUNCH OUT OF THE U.K. FAILED TO REACH SAID ORBIT IT HAS IN ITS NAME. WE CAN TALK TO THE REASONS WHY AND WHY EVERYONE WAS SEARCHING FOR IT ON GOOGLE AND SEEING THE TREND ON TWITTER. THE PERSON WHO COVERS SPACE FOR US IS HERE. CLEARLY IT DID NOT GO AS PLANNED.
>> NO, IT DID NOT. IT DID LOOK AS IF IT WAS GOING TO GO AS PLANNED. THE VIRGIN ORBIT LAUNCH IS NOT WHERE THE ROCKET TAKES OFF FROM THE GROUND. THEY DO AND THERE LAUNCH AIR LAUNCH WITH A MODIFIED 747 PLANE THAT CARRIES IT UNDER ITS WING. IT TOOK OFFICE PLAN FROM CORNWALL AND REACH THE DROP ZONE AND TARGET ALTITUDE FOR DROPPING THE ROCKET, THEN IT IGNITED THAT ENGINE AND EVERYTHING LOOKED FINE, THEN SOMETHING HAPPENED MIDFLIGHT AND WE DON'T KNOW EXACTLY WHAT YOU, BUT IT DID NOT REACH ORBIT.
IT DID MAKE IT TO SPACE, BUT NOT ORBIT. ED: THIS WAS SUPPOSED TO BE A KEY MOMENT FOR THE U.K. SPACE INDUSTRY. CORNWALL IS THE SURF MECCA FOR THE U.K.. THE U.K. SPACE AGENCY, WHICH IS NOT BEEN THAT BUSY FOR A WHILE, WAS REALLY EXCITED. WHAT WAS THE RESPONSE FROM THE COMPANY? THIS IS THEIR SIXTH ATTEMPT TO LAUNCH WITH THE 747 MECHANISM, BUT THE SECOND FAILURE. I'M TRYING TO UNDERSTAND WHAT
WENT WRONG. >> WE ARE ALL TRYING TO UNDERSTAND IT AS WELL. THE COMPANY STATED SOMETHING WENT WRONG DURING THE SECOND STAGE. BOOSTER IGNITION. IF YOU'RE WATCHING THE LIVESTREAM LAST NIGHT, THERE WAS SOME FUNKY DATA COMING IN. IT LOOKED LIKE THE ROCKET WAS TRENDING IN THE WRONG DIRECTION, BUT THE LIVESTREAM HOSTS WERE SAYING EVERYTHING IS GOING WELL. THE SOCIAL MEDIA TWITTER
ACCOUNT WAS TWEETING OUT THEY REACHED ORBIT, BUT THEN WE LEARNED THAT WAS A PREMATURE TWEET AND THEY ENDED UP DELETING THE TWEET ONCE THEY FOUND OUT THAT WAS INCORRECT, SO IT IS STILL UNCLEAR WHAT HAPPENED. ALL WE KNOW IS THAT ALL PAYLOADS WERE LOST AND THEY WILL BE DOING AN INVESTIGATION TO FIGURE OUT WHAT HAPPENED. ED: IRRESPECTIVE OF THE FAILURE, WHAT WAS 2023 DUE TO BE FOR VIRGIN ORBIT IN THE U.K.? WHERE THERE ANY MILESTONES THEY WERE HOPING THE HIP? >> THEY WERE LOOKING TO INCREASE FLIGHT CADENCE. THAT IS ONE OF THE BENEFITS OF THIS THERE LAUNCH METHOD THEY ARE ABLE TO BE MORE FLEXIBLE WHERE THEY LAUNCH FROM.
ALL THEY NEED IS THE RIGHT RUNWAY AND THE RIGHT AIRSPACE AND THEY CAN POTENTIALLY LAUNCH FROM A NUMBER OF LOCATIONS. PLUS, THIS WAS THE FIRST TIME THEY LAUNCHED OUTSIDE OF THEIR NORMAL LUNCH FACILITY IN MOHAVE, CALIFORNIA. BECAUSE OF THE NATIONAL PRIDE ASSOCIATED WITH IT, THERE WAS A BIG SPOTLIGHT ON THIS LAUNCH COMES SO UNFORTUNATE A LOT OF PEOPLE DIDN'T SEE IT GO AWRY, SO IT IS UNCLEAR IF VIRGIN ORBIT CAN EXPEDITE LAUNCHES AS INTENDED, HOWEVER, IT ONLY MADE IT TO ORBIT TWICE LAST YEAR SO IT IS NOT A HIGH BAR TO CLEAR. ED: A LOT OF DASHED HOPES. CAROLINE: THANK YOU. WE STILL LOVE YOU, CORNWALL. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY.
GREAT CONVERSATIONS, CRYPTO, ALANA EDITS TRAGEDY IN THE STUDIO. ED: IHEART RADIO SPOTIFY, APPLE. THIS IS BLOOMBERG.
2023-01-11