ED: I AM IN SAN FRANCISCO. THIS IS BLOOMBERG TECHNOLOGY. COMING UP, TECH STOCKS A DROP AS THE HOT JOBS REPORT AS PRESSURE ON THE FED TO KEEP RAISING RATES. WARNINGS FROM AMAZON AND ALPHABET COME AWAY ON SHARES AS BIG TECH GETS HIT BY THE SLOW DOWN. THE NASDAQ 100 RISES FOR A FIFTH STRAIGHT WEEK. AS APPLE GAINS. IN THE CYBERATTACK WHICH SENT DERIVATIVE TRADING INTO THE 1980'S. WE HAVE THE BLOOMBERG SCOOP ON HOW VULNERABILITY AT A LITTLE-KNOWN SOFTWARE FORM -- FIRM LED TO MARKETS GOING MANUAL.
THE MARKETS ARE HOT, JOBS FOR. PUTTING PRESSURE ON THE FED TO LOOK AT RAISING RATES. THAT IS THE MARKET TAKE AWAY. WE DIGEST EARNINGS, DOWN 1.8%. WE ENDED THE WEEK UP ON THE WEEK , MEANING FIVE STRAIGHT CONSECUTIVE WEEKS OF GAINS. THE PHILADELPHIA SEMICONDUCTOR
INDEX ONLINE WITH THAT, DOWN 1.9% AS YIELDS PUSH HIGHER. BITCOIN DID NOTHING IN REACTION TO WHAT WE SAW FROM THE DATA. IT TRADED SIDEWAYS AT $23,500. THERE IS MOMENTUM IN THE EARNINGS STORY IN BOTH DIRECTIONS. LOOK AT THE NAMES WE ARE THINKING ABOUT.
PARTICULARLY APPLE. THE POST MARKET REACTION THURSDAY TO APPLE'S MISS WAS NEGATIVE AND YET WE ARE UP 2.5%. THERE WAS SOME OPTIMISM AROUND WHAT TIM COOK HAD TO SAY ABOUT REOPENING IN CHINA. NOT SO FOR ALPHABET OR GOOGLE -- AMAZON. THOSE SHARES DROPPING AND
ACCELERATING THE DECLINES AFTER THE JOB SPRINT. EARNINGS WERE NOT IMPRESSIVE TO INVESTORS. META--- META HAD BEEN HIGHER ON THE CONTINUING MOMENTUM FOR EARNINGS THAT BEAT EARLIER IN THE WEEK BUT THEN WE HAVE THE JOBS PRINT. THE FOCUS ON DATA IS BACK. THE FOCUS IS ON THE FED BACK. REED, HIT ME WITH THE NUMBERS WE GOT FROM THE ECOSPHERE ON FRIDAY. REED: I AM HERE TO REPORT GOOD ECONOMIC NEWS.
THAT IS A GREAT WAY TO AND FRIDAY. WHAT WE SAW WAS EMPLOYERS ADDING HALF A MILLION JOBS IN JANUARY WHICH BLEW PAST ESTIMATES AND IT WAS THIS BROAD-BASED GAME THAT REALLY SHOWED IN THIS THREE STRENGTHENING IN THE LABOR MARKET. WHEN WE DID NOT KNOW IT COULD GET STRONGER.
YOU SAW THE UNEMPLOYMENT RATES FALL TO 3.4%. WHICH IS A 53 YEAR LOW. WE SAW THIS BROAD-BASED HIRING, WE SAW THE WORK WEEK TAKE UP. SHOWING THAT THERE IS THIS ROBUST LABOR DEMAND. WE SAW WAGES, DECELERATING FROM THE PRIOR MONTH, WE SAW THEM CONTINUE TO CLIMB AT A ROBUST RATE. ED: YOU ARE THE ONLY PERSON THAT I
KNOW THAT CAN GO THROUGH ALL OF THAT WITH SUCH BEAMING JOY ON FRIDAY AFTER WHAT HAS BEEN A BUSY DAY IN MARKETS. VOLATILITY DRIVEN BY THE NUMBERS. HERE I AM BROKEN AND EXHAUSTED. YOU KEEP GOING. LET'S GO WITH IT. THE NARRATIVE, WE FRAME IT,
BACK TO THE FRED -- FED. GOOD ECONOMIC DATA, BAD FOR THE MARKETS BECAUSE OF WHAT WE THINK THE FED WILL HAVE TO RECONSIDER. WHAT IS THE MARKET SAYING ABOUT THE FEDERAL RESERVE IN RESPONSE TO THE NUMBERS WE HAVE ON THE SCREEN? READE: WHENEVER YOU GET A NUMBER LIKE TODAY IN THE WAKE OF OTHER STRONG DATA, YOU SAW JOBS -- JOB OPENINGS RALLY ABOVE 11 MILLION. JOBLESS CLAIMS, APPLICATIONS FOR ON EMPLOYMENT, FALL IN THE LAST FOUR OUT OF THE FIVE LAST WEEKS. YOU'VE SEEN THIS SUSTAINED A STRENGTH IN THE CONSUMER. IT REALLY MAKES -- IT REALLY MAKES THE FED'S JOB DIFFICULT.
WE HAD A GREAT STORY OUT TODAY THAT WHEN YOU SEE JOBS NUMBERS LIKE TODAY, IT STRENGTHENS THE FED'S RESOLVE TO PUSH RATES ABOVE 5%. ED: BLOOMBERG'S REED PICKETT, FANTASTIC REPORTING ON THE. ECO-DATA I WANT TO HONE IN ON THE TECH SECTOR AND PUT IT IN THE CONTEXT OF JOB CUTS. ALL THAT WE HAVE SEEN IN 2022, WE HAVE BEEN ASKING IF THESE CUTS HAVE BEEN TOO LARGE, TOO SMALL OR EVEN TO PREMATURE. HERE IS WHAT OF -- HE WAS WHAT SOME GUESTS HAVE HAD TO SAY. -- HERE IS WHAT SOME GUESTS HAVE SAID.
>> EVEN AFTER THE RECENT LAYOFFS HE OF SEEN, WE STILL SEE TECH AS RELATIVELY LOADED. WHEN YOU LOOK AT HOW MUCH EMPLOYMENT COUNTS HAVE GROWN RELATIVE TO ITS REAL SALES GROWTH OVER THE PAST SEVERAL YEARS. EVEN AFTER >> THE RECENT LAYOFFS.
FOR EVERY LARGE BIG TECH COMPANY THAT IS HAVING LAYOFFS, THERE ARE MANY SMALL ORGANIZATIONS THAT ARE EAGER TO GOBBLE THE EMPLOYEES UP. I WOULD NOT SAY THERE IS A GROWTH. WE'RE SEEING IS A CEOS TAKING ADVANTAGE OF FEAR. >> THESE LAYOFFS PUT THE COMPANIES IN A POSITION WHERE IT IS MORE DIFFICULT FOR THEM TO SHOW, BETTER THAN EXPECTED SALES IN PROFITS BECAUSE IF THEY HAD BETTER THAN SALES PROFITS THEY WOULD NOT CUT HEADCOUNT SIGNIFICANTLY.
>> THE LAYOFFS ARE THE CATALYST TO GIVE THE FED CONFIDENCE INFLATION WILL GET BACK TO 2%. >> YOU WILL SEE THE MARGIN IMPROVEMENTS AND BOTTOM-LINE IMPROVEMENTS ON EARNINGS THAT RESULT FROM THE LAYOFFS IN THE COST-CUTTING. YOU WILL NOT SEE IT YET, WE WILL TRICKLE IT IN THE COUPLE MONTHS. ED: YOU HAD THE ECO-DATA AND EARNINGS. LET'S GET TO THE MACRO WITH THE MANAGING DIRECTOR OVER AT NINE POINT PARTNERS. OVER $6 BILLION, U.S. AND ASSETS UNDER MANAGEMENT, CANADIAN DOLLARS.
IT IS QUITE THE WEEK TO DIGEST. LET' START ON THES JOBS DATA. REALLY HOT PRINT FOR JANUARY IN THE U.S. THE LOGIC IS THE FED WILL HAVE TO RETHINK ABOUT THE TIMING OF A POLICY PIVOT. IN THE CONTEXT OF HIGHER RATES DISCOUNTING PRESENT VALUE, FUTURE PROFITS, TECH, ETC. IS THIS A THINK AGAIN MOMENT OR IS THIS A BLIP? >> WE ARE BACK IN THE ZONE WHERE GOOD NEWS IS BAD NEWS. THE MARKET REACTION WAS PRETTY PREDICTABLE, GIVEN THE MUCH HARDER THAN EXPECTED APPARELS AS HE POINTED OUT THE MARKET HAS BEEN UP FIVE WEEKS IN OF ROW. THE NASDAQ WHICH IS SENSITIVE
TO INTEREST RATES IS SAID TO CLOSE, RECENTLY CLOSING AT OVER 3% FOR THE WEEK. WE ARE DUE FOR A PULLBACK AFTER A BLISTERING HOT PERIOD AS I SEE IT I DON'T SEE THE NUMBER TODAY AS ONE ISOLATED DATA POINT IS ENOUGH TO DERAIL THE RISK ON TRADE WE HAVE SEEN PICKUP. ED: YOU HOLD APPLE, AMAZON, MICROSOFT AS WELL AS WE REFLECT ON THE WEEK OF EARNINGS. ONE OF THE TAKEAWAYS THAT OTHER GUESTS HAVE SAID IS ESSENTIALLY THIS IS DEFINITIVE PROOF.
MEGA CAP TECH IS NOT IMMUNE TO WHAT WE HAVE SEEN IN THE GLOBAL ECONOMY. WAS THAT YOUR TAKE AWAY? ALEX: I THINK THAT IS BEEN OBVIOUS FOR THE PAST FEW MONTHS. GOING INTO 2023, INVESTORS HAVE BEEN PRICING IN THE WORST-CASE SCENARIO FOR THE START TO THIS YEAR. EXPECTATIONS WERE THAT INFLATION WAS GOING TO RUN HOT, FORCING THE FED AND OTHER CENTRAL BANKS TO KEEP JACKING UP RATES.
AND WE WILL BE DUE AT SOME POINT FOR SOME KIND OF ECONOMIC SLOWDOWN, MAYBE EVEN A MAJOR RECESSION. SO FAR, THE DATA HAS NOT BORNE THAT OUT. I WOULD NOT SAY WE ARE OUT OF THE WAS WHAT THE WORST-CASE SCENARIO IS REALLY NO LONGER THE BASE CASE. A SOFT LANDING WENT FROM SOMETHING THAT WAS A PIPE DREAM FOR A LOT TO SOMETHING THAT IS BEING INCREASINGLY PRICED INTO THE MARKET. THAT IS OBVIOUSLY GOING TO CYCLE CAPITAL BACK INTO STOCKS. A LOT OF MANAGERS STARTED THE
YEAR VERY UNDERWEIGHT, LOOKING TO WAIT AND SEE HOW THE FED REACTED. YOU GET THIS FOMO, WHERE THEY HAVE TO PLAY CATCH-UP TO MAKE SURE THAT THEY DON'T MISS THEIR BENCHMARKS. WE'RE SEEING THAT. ED: THERE IS THIS IDEA OF TOUGH COMPS OR UNFAIR COMPARISONS BETWEEN Q4 22 AND 2021. APPLE WAS THAT. ALSO, THE IDEA THAT IT WAS NOT
FAIR TO COMPARE WITH THE YEAR -- WITH A PERIOD A YEAR AGO BECAUSE OF THE DIFFERENT PRODUCT RELEASE TIMINGS. HOW GOOD WAS Q4 21 COMPARED TO WHAT WE SAW IN THE MOST RECENT EARNINGS PERIOD? ALEX: EVERY COMPANY IS DIFFERENT. IN ALEX, THE PRODUCT CYCLE CAN WE ON EARNINGS. Q4 21 COME A LITTLE OVER A YEAR AGO WAS THE GOLDILOCKS ZONE.
WE HAD ALL THIS DEFERMENT, CONSUMER SPENDING, PEOPLE WERE LOCKED UP DURING COVID. YOU HAD AN ECONOMY GROWING. INFLATION RESERVES WERE NOT AS CUTE AS THEY ARE TODAY -- AS A CUTE AS THEY ARE TODAY. YOU SAW THAT TRANSFERRED INTO CONSUMER SPENDING, SPENDING ON CLOUD, SO FORTH. I WOULD SAY, LOOKING AT MOST INVESTORS WERE LOOKING AT THE EARNINGS PRINTS FROM THESE DIFFERENT COMPANIES, HOPING TO AVOID THE WORST. TECH EARNINGS WERE MEDIOCRE. I WOULD SAY, KIND OF A MIXED BAG READ FACEBOOK READ ON EARNINGS BUT HAD EXCEPTIONALLY LOW EXPECTATIONS. APPLE, MIXED ON BOTH YOU -- MIXED ON BOTH.
COMPARED TO WHAT WE SAW LAST YEAR. REALLY, PEOPLE ARE TRYING TO LOOK FORWARD TO SEE WHAT THESE COMPANIES ARE GOING TO DO TO TRY TO RIGHT THE SHIP. ED: HOW ZERO IN IS THIS MARKET ON THE BOTTOM LINE? WHEN WE TALK ABOUT EARNINGS IN 2023 GOING FORWARD, THE ANSWER IS NOT MUCH, OTHER THAN THEY ZEROED IN ON COST. ALEX: IT IS A GROW AT ALL COST ENVIRONMENT. THAT IS WHY YOU SAW UNPROFITABLE TEXT -- TECH COMPANIES TRADING AT SKYHIGH PRICES. WE ARE STARTING TO MIGRATE FROM A TOPLINE MARKET TO A BOTTOM LINE MARKET. THERE IS A FOCUS ON COST, ALL
THE INPUTS THAT GO INTO THE FINANCIALS FOR THESE COMPANIES. AS HE POINTED OUT THERE HAVE BEEN JOB CUTS AND OTHER TRIMMING. IF YOU LOOK AT THE EARNINGS CALLS FOR THESE COMPANIES THE PAST WEEK AND A HALF. THAT IS SOMETHING THEY HAVE DRILL DOWN ON. INVESTORS ARE PRICING THAT IN. IF THEY CAN KEEP CUTTING COSTS, EVEN AS REVENUE IS FLAT, I'M GOING TO SEE BIGGER EARNINGS AND I WANT TO BUY IN THAT TRADE. ED: ALEX TAPSCOTT, MANAGING
DIRECTOR AT NINEPOINT PARTNERS DIGITAL ASSETS. GOOD TO TALK TO ON THIS FRIDAY. COMING UP, WE WILL WRAP UP THE WEEK THAT WAS IN TECH EARNINGS TAKING THE LESSONS FROM AMAZON, GOOGLE AND APPLE AS WE LOOK AHEAD TO NEXT WEEK'S EARNINGS. ALL OF THAT, NEXT. THIS IS BLOOMBERG. ♪
>> TECH IS REALLY DOING QUITE TERRIBLY ON FUNDAMENTALS. WHILE TECH COMPANIES ARE RIPPING ON THE STOCK PRICES THEY ARE HAVING AN AWFUL EARNINGS SEASON. ED: IT IS A PRETTY DIRECT AND DIRE ASSESSMENT FROM CREDIT SUISSE'S JONATHAN ON HOW TEXT FAIR -- TECH FARES.
LET'S GET AN E-COMMERCE PERSPECTIVE. THE CEO OF MICMAC, AN ANALYTICS PLATFORM FOR MULTICHANNEL BRANDS. YOU HEARD WHAT HE HAD TO SAY ABOUT HOW TECH IS DOING IN SUMMARY, NOT VERY WELL.
WHEN YOU LOOKED ACROSS AMAZON AND ALSO AS IT EXTENDS TO WHAT ALPHABET HAD SAID ABOUT CORE SEARCH. WHAT WAS YOUR TAKE AWAY FROM THIS WEEK? RACHEL: WE KNEW THIS WAS GOING TO BE A TOUGH WEEK. WE'RE TALKING ABOUT THE THREE BIGGEST PLAYERS IN ADVERTISING, GOOGLE META-AND AMAZON THEY EACH PLAY A FUNDAMENTAL ROLE IN THE ECOSYSTEM BUT TIMES ARE CHANGING. WITH GOOGLE THEY HAD THE STRONGHOLD ON SEARCH BUT THEY ALSO SIT ON THIS AMAZING ASSET, YOUTUBE WHICH IS AN INCREDIBLE PLACE FOR BRAND AWARENESS. YOU HAVE META-, THE LARGEST PLAYER IN SOCIAL, THEY HAVE DONE A PHENOMENAL JOB OF BUILDING FULL FUNNEL APP SOLUTIONS ACROSS FACEBOOK AND META-AND THEN YOU HAVE AMAZON, THE LARGEST PLAYER IN ECON WHICH IS ANOTHER WAY OF SAYING THEY ARE SITTING ON A TREASURE OF BRIDGES DATA WAITING TO BE MONETIZED. WHAT HAS CHANGED -- ED: I WANTED TO ZERO IN ON THAT.
THIS IS WHAT HAS SURPRISED ME ABOUT THIS EARNINGS REPORT FROM AMAZON. LAST QUARTER, THE UPSIDE SURPRISE WAS ADVERTISING. THIS QUARTER, THE DOWNSIDE TO -- A SURPRISE WAS AWS DID NOT SAVE THE DAY. WE DID NOT TALK ABOUT ADVERTISING. YOU'RE SAYING THAT THIS IS STILL LOCKED UP POTENTIAL FOR THE E-COMMERCE GIANT. RACHEL: ABSOLUTELY.
AWS WHAT HAVE OFFSET -- IS AN AMAZING WAY TO OFFSET MARGINS IN THE LOSSES OF THEIR TRADITIONAL RETAIL BUSINESS. AMAZON'S AD BUSINESS GREW 23% IN Q4 IT WAS NOW BECOMING A VERY, VERY CLOSE PLAYER BEHIND META-. THE REASON FOR THIS IS BECAUSE OF THE HEADWINDS THAT GOOGLE AND META HAVE EXPERIENCED.
CHANGES IN APPLE IOS14, THEY STARTED TO UNDO THE WAY THAT DIRECT RESPONSE ADVERTISING FUNDAMENTALLY WORKED IN PLATFORMS LIKE META AND GOOGLE. AS A RESULT, ADVERTISERS WANT TO BE ABLE TO DEMONSTRATE THE ROI OF THEIR MARKETING INVESTMENTS. AMAZON IS SITTING ON ALL OF THIS PURCHASE DATA TO BE ABLE TO DEMONSTRATE ADVERTISERS TO THAT RETRIBUTION. AMAZON IS WRITING THE TAILWINDS THAT ARE GOOGLE AND META--- META'S HEADWINDS. ED:
LET'S ZERO IN ON META, THE SURPRISE OF THE WEEK. A, THE RESPONSE, META-SHARES JUMPING MORE THAN A DECADE ON THURSDAY. THE OTHER DATA POINT IS FACEBOOK AT 2 BILLION DATA USERS, UP 17 MILLION FROM A YEAR AGO. WHAT HAS META DONE TO MAKE THE PLATFORMS INTERESTING? PRESUMABLY, THE MARKET REACTION IS INVESTORS SAYING THIS BODES WELL FOR ADVERTISING REVENUE GOING FORWARD. RACHEL: YEAH.
THE WAY THAT PEOPLE MEASURE THE AT -- EFFICACY IS TO THIS MYTHICAL MODEL CALLED MEDIA MIXED MODELING. IT REQUIRES BRANDS NEED FULL FUNNEL MARKETING. IN ORDER FOR THE MATH EQUATION TO WORK THEY NEED TO HAVE UPPER FUNNEL MEDIA THAT IS LETTING PEOPLE KNOW, HEY EXIST IN THE WORLD. MID FUNNEL MEDIA THAT IS ENCOURAGING THEM TO BUY. THEN BOTTOM OF THE FUNNEL MEDIA THAT IS PUSHING THEM TOWARDS THE PATH TO PURCHASE. BOTTOM OF THE FUNNEL MEDIA,
THINK AMAZON, WALMART, INSTACART. IT'S TYPICALLY EXPENSIVE. UPPER FUNNEL MEDIA IS MORE AFFORDABLE. META, REMAINS TO BE A REALLY STRONG PLATFORM FOR UPPER FUNNEL MEDIA.
MIKMAK WE WORK ACROSS, 800 OF THE BIGGEST BRANDS IN THE WORLD. IN 2022 WE SAW PAY TRAFFIC WITHIN META-INCREASE BY 8%. WE SAW DECLINE IN GOOGLE BY 7%. THAT DEMONSTRATES ADVERTISERS STILL SEE MET AS ANA UPPER FUNNEL CHANNEL. PEOPLE ARE MOVING DOLLARS OUT OF GOOGLE, BECAUSE THAT IS PRIMARILY SEARCH, INTO AMAZON. AMAZON IS THE NEW SEARCH. ED: RACHEL, WHAT DID WE LEARN ABOUT THE HEALTH OF THE ADVERTISER MARKET FOR SOCIAL MEDIA COMPANIES THIS WEEK? RACHEL: WE ARE LEARNING THAT PEOPLE ARE CONTINUING TO SPEND. IS IT THE GOLD RUSH OF 2020 AND
2021? NO. BUT ARE BILLIONS OF DOLLARS A STILL MOVING INTO PLATFORMS LIKE MET AND PINTERESTA AND TIKTOK? ABSOLUTELY. TIKTOK CONTINUES TO BE A PLATFORM THAT EVERYONE SHOULD BE WATCHING.
WE SAW MASSIVE AMOUNTS OF DOLLARS, AGAIN SHIFT AWAY FROM PLATFORMS LIKE YOUTUBE. INTO TIKTOK IN 2022. ED: I FINALLY WANT TO GO TO TWITTER. SINCE IT HAS GONE PRIVATE THERE ARE LESS FUN TO BE HAD.
YOU CAN GO TO ELON MUSK'S TWITTER. HE IS TALKING ABOUT SHARING REVENUES FROM ADS WITH THE CREATORS. I'M INTERESTED IN YOUR TAKE ON THIS ABOUT TWITTERS PIVOT TO A CREATED -- CREATOR DRIVEN PLATFORM, DO YOU THINK HE CAN DO THAT? RACHEL: IS DOING EVERYTHING TO KEEP DOLLARS WITHIN THE PLATFORM.
AT MIKMAK WE HAVE SEEN NO HUNDRED PERCENT DECLINE IN PAID -- 100% DECLINE IN TRAFFIC SINCE HE TOOK OVER TWITTER. WITH CREATORS IT IS AN INTERESTING PLAY. YOUTUBE DID A SIMILAR MOVE, THEY SHARED 50% OF THE AD REVENUE WITH CREATORS. AS A RESULT, MANY INFLUENCERS
BUILT SIX-FIGURE BUSINESSES ON YOUTUBE. IT'S ENCOURAGE THEM TO MOVE WAY FROM PLATFORMS LIKE INSTAGRAM TO YOU TO FOR CONTENT CREATION. THERE IS AN OPPORTUNITY FOR TWITTER TO ENGAGE WITH CREATORS. IT IS NOT NOVEL. IT IS A PROVEN PLAYBOOK THAT WORKS. ED: RACHEL TIPOGRAPH, FOUNDER AND CEO OF MIKMAK.
THANK YOU SO MUCH OF JOINING US THIS FRIDAY -- FOR JOINING US THIS FRIDAY. RIVIAN IS DEVELOPING AN ELECTRIC BIKE, EXPANDING THE EV MAKERS PRODUCT LINEUP. THIS IS SOMETHING I REPORTED ON EARLIER FOR BLOOMBERG. THE CEO DISCOURAGED THE EVITE EFFORT FRIDAY -- E BIKE EFFORT.
THAT IS ACCORDING TO MY SOURCES. A SMALL GROUP OF ENGINEERS IS WORKING ON THIS PROJECT. HE TOLD HIS STAFF THAT THE COMPANY OWNS PATENTS FOR ELECTRIC BICYCLE COMPONENTS AND DESIGNS. COMING UP, DERIVATIVES TRADERS ASCEND BACK TO MANUAL PROCESSING, THANKS TO CYBERATTACK. WE HAVE THE DETAILS ON THAT,
COMING UP. THIS IS BLOOMBERG. ED: A CYBERATTACK EARLIER THIS WEEK SENT DERIVATIVES TRADING BACK TO THE 1980'S. JOINING US FOR MORE, BLOOMBERG'S CATHERINE WHO HAS THE SCOOP EXPLAINS THE BASIC OF THE STORY. >> JUST THIS WEEK, I ON TRADING, A SOFTWARE FIRM THAT IS THE KEY TO MANY MARKETS ACROSS THE GLOBE. THIS SPECIFIC SOFTWARE WAS FOR DERIVATIVES TRADING.
EARLIER IT STARTED IN EUROPE. SOME OF THE SYSTEMS WERE DOWN. IT CAME OUT THAT THERE WAS A CYBERATTACK. ULTIMATELY, THAT MEANT THAT DERIVATIVES TRADING WAS UPENDED ACROSS THE WORLD. IT REALLY HAS BEEN A DISRUPTION. THIS TARGET IS ONGOING, THESE SYSTEMS ARE STILL DOWN ACROSS THE GLOBE AND ONLY JUST NOW EITHER COMING BACK ONLINE OR MOVING ELSEWHERE. THERE HAS BEEN A RIPPLE EFFECT.
THERE HAS ALSO BEEN MANY DEVELOPMENTS EVEN CURRENTLY, WE'RE CALLING SOURCES BECAUSE IT HAS COME OUT ON THE CYBERATTACK, THE ACTUAL ATTACKING WEBSITE. THIS SOFTWARE IS NOW NOT ON THEIR TARGET LIST. WE MAY SEE SOME DEVELOPMENTS AND RESOLUTION SOON. ED: THIS IS A STORY, OF TECHNOLOGY GONE WRONG. TERRIFIC REPORTING FROM YOU ON THE TEAM. WE HAVE HAD RESPONSES FROM THE U.S.
TREASURY DEPARTMENT AND ALSO SOME BANKS. WHAT ARE THEY SAYING? KATHERINE: TODAY WE PUT OUT REPORTING ON THE BANKS THAT ARE EITHER DIRECTLY IMPACTED AND WHAT THEY ARE SAYING IS THEY ARE MANAGING THEIR TRADE, SOME OF THEM MANUALLY. THEY ARE GOING BACK TO -- WE REFER TO THE 1980'S WHEN THIS WORLD OF DERIVATIVES TRADING WAS MORE MANUAL AND LESS AUTOMATED, LESS DEPENDENT ON COMPUTERS AND ELECTRONIC TRADING THEN IT IS TODAY. THEY ARE TRYING TO RESOLVE THIS ISSUE, THEY ARE MANUALLY REPORTING SO THAT THEY CAN ABIDE BY THE REGULATORY GUIDANCE. THE REGULATORS ARE GIVING SOME FLEXIBILITY AS WELL. THEY EXTENDED SOME DEADLINES AND SOME OF THE REPORTING REQUIREMENTS THAT ARE DUE AT THE END OF THIS WEEK HAVE BEEN EXTENDED. ED:
IT FEELS LIKE THIS IS THE START OF THIS ONE. CATHERINE DOHERTY, THANK YOU VERY MUCH. THE PENTAGON IS TRACKING SURVEILLANCE BLOOM THAT WAS IN HIGH ALTITUDE. THE BALLOON WAS HOME TO BALLISTIC MISSILES, THE PENTAGON ADVISED THE SHOOTING IT DOWN DUE TO THE RISK OF FALLING DEBRIS. THEY POSTPONED THE SECRETARY BLINKEN'S UPCOMING TRIP TO BEIJING WHICH WAS DUE TO HAPPEN, NEXT WEEK.
MORE AND MORE TECH GIANTS GETTING INTO AI. GOOGLE IS THE LATEST. WE WILL TELL YOU ABOUT THAT ONE, NEXT. THIS IS BLOOMBERG. ED: WELCOME BACK TO BLOOMBERG TECHNOLOGY. I'M ED LUDLOW IN SAN FRANCISCO. GOOGLE INVESTED ALMOST 400 MILLION IN THE AI STARTER WHICH IS TESTING ARRIVAL TO OPEN AI'S CHATGPT. THE DEAL GIVES GOOGLE A STAKE
IN ANTHROPIC. IT DOES NOT REQUIRE ANTHROPIC TO SPEND ANY OF THE FUNDS BUYING CLOUD SERVICES FROM GOOGLE. IT'S BEEN A LONG WEEK OF AI HEADLINES. I WANT TO BREAK MORE DOWN NOW WITH THE HEAD OF RESPONSIBLE AI AT THIS GLOBAL AI PROVIDER TO COMPANIES ACROSS FINANCE COME HEALTH CARE AND RETAIL.
START WITH THAT. YOU OPERATE IN THE WORLD OF AI. YOU ARE FOLLOWING THE HEADLINES IN TECHNOLOGICAL DEVELOPMENTS. THE EXECUTIVES OVER AT ALPHABET AND GOOGLE WERE READY FOR THE QUESTIONS, ONE ARE YOU GOING TO PULL BACK THE CURTAIN. WHAT DID U.S. AND INDUSTRY ARE TO SUBMIT LEARN THIS WEEK ABOUT GOOGLE'S LATEST NAI? -- IN AI? >> THIS IS A FASCINATING TOPIC FOR ALL OF US IT WILL AFFECT SOCIETY. DEFINITELY, AFTER THE GOOGLE EARNINGS REPORT THAT INDICATES A LOT OF -- A LOT ABOUT THE MICROECONOMIC ENVIRONMENT.
NOT GROWING AS FAST AS IT WAS LAST YEAR. THAT IS THE MICRO TREND. THE MOST INTERESTING PART HAS BEEN THE INVESTMENT OF ANTHROPIC AS WELL AS THE ARMS OF GOOGLE COMING TOGETHER WHICH HAS BEEN A GREAT THING TO SEE. THE LANGUAGE MODEL'S ARM RIGHT. THEY ARE USING THAT FOR THE APPRENTICE PART IN ORDER TO TEST. THEY ASK EMPLOYEES TO USE
IT AND SEND FEEDBACK. IT IS AN INTERESTING MOVE. THE OTHER DEEP MINE, IT HAS THE BEST ALGORITHM SINCE 2010. IT'S BECOME PART OF GOOGLE. THEY ARE ASKING PEOPLE TO GET
INVOLVED IN THIS. ALSO ANTHROPIC, EVERYONE IS NOTICING IT IS ONE OF THOSE INVESTMENTS WHICH IS A SIGNIFICANT INVESTMENT. LESS THAN MICROSOFT'S MULTIBILLION-DOLLAR INVESTMENT IN OPEN AI. I FEEL GOOGLE IS TRYING TO
MATCH UP THE SPEED AS WELL IS USING ALL AI METHODS TO CATCH UP. IT'S POSSIBLE IN MAKO BETTER -- MAY GO BETTER. ED: THE OTHE CONVERSATIONR -- HAS EMERGED OVER THE WEEK, WHO WAS AHEAD AND WHO IS BEST POSITIONED, TO COMMERCIALIZE ARTIFICIAL INTELLIGENCE. THE STOCK MARKET IS PAYING
ATTENTION. SEE THREE AI, BIG BEAR AI, EVEN BUZZFEED WHO IS A STOCK HAS BEEN ALL OVER THE PLACE. BECAUSE OF THEIR RELATIONSHIP WITH OPEN AI FOR THE USE OF CHATGPT. BIG BEAR UP 44%. BELOW IS YOUR CONCLUSION THIS WEEK ABOUT WHO IS LEADING IN THE FIELD OF ARTIFICIAL INTELLIGENCE? IS IT MICROSOFT, GOOGLE? >> THAT IS A TOUGH QUESTION. FRANKLY. I WOULD REFLECT UPON IT IN A DIFFERENT WAY. THE RACE IS MUCH LONGER.
FRANKLY, CHATGPT INTEGRATED AI, IT'S A LARGER UMBRELLA IN IT'S A SYNTHETIC DATA LANGUAGE MODELS. OTHERS ARE BEING USED. IT IS STILL FAR AWAY FROM BEING WHERE GOOGLE SEARCH IS TODAY. I THINK IT IS HARD TO PREDICT WHERE THE COMPETITION WILL LIE. MICROSOFT IS DOING THE SAME WITH MICROSOFT TEAMS, ALL OF ITS APPLICATIONS.
WILL THE SEARCH MOVER FROM GOOGLE TO AMAZON -- MOVE UP FROM GOOGLE TO AMAZON? OR MAYBE GOOGLE WILL DOUBLE OF SOMETHING BETTER. THAT IS THE DEBATE WE KEEP HAVING EVERYDAY. IT'S A LITTLE AWAY FROM THE STOCK MARKET. THE STOCK MARKET REACTIONS ARE STARK. I WOULD EXPECT LESS GOING FORWARD. YOU WILL START SEEING THE
IMPROVEMENTS IN AI. CURRENTLY , IT CANNOT BE TRUSTED TO DO MANY THINGS. IT CAN DO BASIC STUFF, LIKE AN APPLICATION, COPIES, MEDIA, NDA'S CONTRACTS. THOSE JOBS MAY GET REPURPOSED TO SOMETHING MORE MEANINGFUL, UPSCALING.
SOME OF THOSE THINGS MAY HAPPEN. BUT IT WILL NOT BE AS COMPLETELY DISRUPTIVE AT LEAST FOR THE NEXT FEW MONTHS. ED: GIVE ME A TASTE OF THE HERE AND NOW, THE REALITY. AND WHAT FRACTAL IS DOING. YOU'RE PROVIDING AI RIGHT NOW
TO FORTUNE 500 COMPANIES. WHAT DOES THAT LOOK LIKE? WHAT DOES THAT MEAN? SAGAR: FRACTAL, HAS A SET OF 5000 PEOPLE PROVIDING TECH SERVICES IN AI TO ALMOST 150 PLUS COMPANIES, ACROSS HEALTH CARE, FINANCIAL SERVICES, INSURANCES, CONSUMER GOODS AND RETAIL. FOR US, EVERY STRATEGIC DECISION, TACTICAL DECISION, OPERATIONAL DECISION, A CONSUMERS MAKING, HOW CAN WE MAKE THAT BETTER. WHEN I SAY AI IT IS A MUCH BROADER TERM, AI CLOUD ENGINEERING, WHICH ENABLE USER OPTIONS. ALL OF THOSE THINGS COME
TOGETHER TO HELP COMPANIES MAKE BETTER DECISIONS. FOUR ALSO HAVING PRODUCTS WILL -- WE ALSO HAVE PRODUCTS HELP BEHAVIORAL SCIENCES THAT SOLVE COMPLEX PROBLEMS. ONE OF MY COMPANIES WORK CLOSELY TO PREVENT -- REDUCE HUMAN TRAFFICKING AND HIV AND SO ON. OTHERS HELP IN TRAINING ANALYTICS. WHICH HELPS CREATE DATA SCIENCE PROFESSIONAL PULL IN THE WORLD. IT'S THE LARGEST TRADING PLATFORM.
THAT'S WHAT WE'RE TRYING TO DO. WE ARE ALSO READING A COMMUNITY OF DATA SCIENTISTS WHO CAN WORK IN THIS NEW ENVIRONMENT, BECAUSE A LOT OF UPSCALING IS REQUIRED IN THIS ENVIRONMENT. A LOT OF BUSINESS PROBLEMS CAN BE SOLVED USING AI. BUT THERE'S ALWAYS A HUMAN REQUIRED. WHAT WE BELIEVE HIS PEOPLE WITHOUT AI WILL SUFFER, COMPARED TO PEOPLE WITH AI. IT'S NOT AI VERSUS HUMAN. ED: SAGAR SHAH, A DEEP READ ON WHAT IS HAPPENING IN THE SPACE.
HEAD OF RESPONSIBLE AI AT FRACTAL. THANK YOU. BECAUSE -- CALLS ARE GOING FOR GROWTH -- CALLS ARE GROWING FOR BANNING TIKTOK IN THE U.S. CAN IT HAPPEN? THIS IS BLOOMBERG. ♪ ♪ ED: COULD TIKTOK BE BANNED IN THE U.S.? OVER TWO YEARS AFTER THE DONALD TRUMP ADMINISTRATION TRIED -- TRY TO FORCE BYTEDANCE TO SELL ITS U.S. BUSINESS, THEIR NEW LEGISLATIVE EFFORTS TO BAN THE SOCIAL MEDIA APP OUT RIGHT.
TWO BILLS ARE BEING PROPOSED ONE AT THE HOUSE, ONE IN THE SENATE. IT IS A TRICKY ISSUE. >> POLICY ARE WALKING A LINE. THEY WANT TO KEEP AMERICA USERS DATA SAFE AND MAKE SURE THERE'S NO INFLUENCE FROM FOREIGN GOVERNMENTS ON THE U.S. THEY ALSO DO NOT WANT TO UPSET A REALLY IMPORTANT AND INCREASINGLY POWERFUL VOTER BASE, BEING YOUNG AMERICANS WHO ARE LOVING AND FINDING A LOT OF THE LIGHT FROM THE TIKTOK APP.
>> THAT IS REFLECTED IN THE MOOD IN D.C. A REPORTER FOR BLOOMBERG NEWS WAS SITTING IN HIS CAR A BLOCK AWAY FROM THE CAPITAL WHEN WE SPOKE. >> YOU WILL NOT FIND MANY LAWMAKERS ON CAPITOL HILL WHO ARE UNABASHED SUPPORTERS OF TIKTOK. THEY SAY THAT THEY HAVE SOME CONCERNS.
>> MY PATIENCE HAS RUN THEN. IF THEY HAVE A SOLUTION SAID THEY HAVE TO LAID OUT. IF THEY DO NOT, YOU ARE GOING TO SEE IF THEY EVER GET TO A SOLUTION IT MAY BE MOVED. INDIVIDUAL STATES. MAY ACT >> IT IS NOT CLEAR WHETHER THEY HAVE THE APPETITE TO MAN IT COMPLETELY. THAT WILL BE TAKING THINGS PRETTY FAR.
AND COULD POTENTIALLY BE CHALLENGED IN COURT. WE WILL SEE HOW THAT WORKS OUT. >> THE APP'S BAN ON ALL DEVICES ISSUED BY THE FEDERAL GOVERNMENT. STATES HAVE FOLLOWED SUIT AS HAS PUBLICLY FUNDED UNIVERSITIES IN THOSE STATES. SOME HAVE ADVOCATED USING AN OUTRIGHT BAN AS A BARGAINING CHIP FOR NEGOTIATIONS WITH CHINA OVER TECH.
IF CONGRESS FAILS TO MAKE ANY PROGRESS, IT WILL FALL TO PRESIDENT JOE BIDEN TO FIND A WAY TO REIN IN THE CHINESE TECH GIANT. ED: THAT WAS BLOOMBERG'S ALEX WEBB. NOW, LET'S TALK MORE ABOUT THIS. LET'S BRING IN GEN Z BC FINANCE CEO FOR HER TAKE. YOU KNOW VC FOUNDERS, YOU KNOW GEN Z TECH.
TIKTOK IS AN APP USED BY A BROAD DEMOGRAPHIC. BUT GEN Z AS WELL. THE OTHER SIDE OF THIS DEBATE IS THE USER BASE, THEN SAYING WE DON'T GET IT.
WE DO NOT GET THE RISKS. WE DON'T GET WHY YOU ARE TAKING THIS AWAY FROM US. WHERE DO YOU SIT ON THAT? >> I THINK IT IS INTERESTING. THERE ARE TWO SORT OF USERS YOU HAVE TO THINK ABOUT. THERE ARE THE PEOPLE WHO CONSUME TIKTOK CONTENT, LIKE ME. AND THE CREATORS WHOSE LIVELIHOODS ARE DEPENDENT ON TIKTOK.
FOR USERS SPENDING 15 OR 20 HOURS A WEEK ON TIKTOK AND IT IS THEIR SOURCE OF ENTERTAINMENT, THEY ARE CONFIRMING THAT THAT IS GOING TO BE TAKING AWAY. FOR CREATORS WHERE THEY ARE MONETIZING ON TIKTOK AND, 70 PLUS PERCENT OF CREATORS, IT'S THROUGH BRAND DEALS. YOU TAKE AWAY THEIR MAIN PLATFORM AND THEIR LIVELIHOODS. PEOPLE ARE UP IN ARMS, THOSE WHO MAKE 60% OF TIKTOK USERS SIMPLY BECAUSE YOU ARE TAKING AWAY EITHER A MAIN SOURCE OF ENTERTAINMENT OR OUR ACTUAL SOURCE OF INCOME.
THE MAIN CAREER PATH WANT TO BE YOUTUBERS AND CONTENT CREATORS, THIS WILL BE A THEME FOR A LOT OF PEOPLE IN TIKTOK. ON THE FOUNDER SIDE, YOU SEE A LOT OF CONSUMER FOUNDERS SCALING THEIR BUSINESSES ON TIKTOK. IT IS A GREAT PATH FOR DISTRIBUTION AND BUILDING AUTHENTIC, ORGANIC PRESENCE VERSUS PAID MARKETING. YOU TAKING AWAY OPPORTUNITY
FROM FOUNDERS AS WELL. ED: COLLOQUIALLY, GEN Z, IS ANYONE BORN IN THE LATE 90'S UNTIL 2010. THAT IS A WIDE GROUP OF PEOPLE WE ARE TALKING ABOUT. I AM INTERESTED IN JAY-Z, VC'S -- JEN -- GEN Z'S VC'S. THE OTHER DEBATE WE WANT TO HAVE YOU WANT TO TALK ABOUT IS HOW THOSE PEOPLE WILL FARE IN 2023. OUR COLLEAGUES AT BLOOMBERG OPINION WROTE TO THIS, -- COLUMN THIS WEEK CALLED GEN Z STARTUPS WILL FACE A TOUGH SELL IN 2023.
THEY'RE ENTERING AN ENVIRONMENT WHERE THEY ARE TRYING TO RAISE MONEY, GET BUSINESSES OFF THE GROUND, BUT THE WORLD HAS CHANGED. WHAT CONVERSATIONS ARE YOU HAVING NOW WITH COMMUNITY THAT YOU FOUNDED? >> I THINK THE FUNDING ENVIRONMENT IS DIFFERENT FOR YOUNGER FOUNDERS AND OLDER FOUNDERS. THE AVERAGE AGE IS 35 YEARS OLD. I UNDERSTAND THAT THE CONVERSATION WITH THE INVESTORS WHERE IT IS LIKE, MAYBE THERE IS LESS RISK IN BACKING EXPERIENCE FOUNDERS WHO ARE -- WHO HAVE DONE IT BEFORE. . ON THE FLIP SIDE THERE IS GENERATIONAL SIDE. YOU SEE THIS WITH EVERY GENERATION.
IT'S NOT SOMETHING THAT IS UNIQUE WITH GEN Z BUT IT IS AN IMPORTANT PIECE, WHEN YOU LOOK AT THE WORLD TODAY AND THE PROBLEMS WE ARE EXPERIENCING, GEN Z FOUNDERS HAVE NATURALLY ASKED IAN'S THE PAIN FIRSTHAND AND CAN BUILD FIRSTHAND. EVEN ME AS A GEN Z INVESTOR, LARGE FUNDS, I TENDED TO BACK FIRST TIME FOUNDERS, GEN Z FOUNDERS BECAUSE I UNDERSTOOD THEIR TAKE AS AN INVESTOR. WHAT I AM SEEING IS ENCOURAGING FOUNDERS TO FUNDAMENTALS.
THINKING ABOUT THEIR UNIQUE VALUE, WHAT MAKES THEM THE BEST PERSON TO BUILD THE BUSINESS. JUST THINKING ABOUT FOUNDER MARKET FOR, WHICH IS TRUE FOR GEN Z FOUNDERS, LINEAL FOUNDERS, GE X FOUNDERS -- GEN X. FOUNDERS. THERE IS A MASSIVE OPPORTUNITY TO BACK GEN Z FOUNDERS. ED: WHEN YOU LOOK AT OPPORTUNITIES AS AN INVESTOR I KNOW YOU BACK A LOT OF GEN Z FOUNDERS, WHAT ARE THE AREAS YOU ARE MOST EXCITED ABOUT IN 2023? WE HAVE 30 SECONDS. >> WE DO A POLL EVERY YEAR. THE TOP THREE TRENDS THAT GEN Z INVESTORS ARE TRACKING OUR CLIMATE TECH, AI AND ML, WHICH IS A HOT TOPIC, AND FINTECH AS WELL.
THOSE ARE THREE AREAS WE ARE TRACKING. EVEN JUST THIS WEEK I HAVE BEEN TO BUNCH OF AI COMPANIES. A LOT OF YOUNGER FOUNDERS ARE BUILDING AN AI PROPERTY. ED: GEN Z VC'S FOUNDER. THANKS SO MUCH FOR JOINING US. COMING UP, THE INDOOR CYCLING PHENOMENON. NO, WE'RE NOT TALKING ABOUT PELOTON. STAY WITH US.
WE WILL EXPLAIN A BIT MORE. ♪ ED: WHEN YOU THINK OF INDOOR CYCLING AT HOME, YOU PROBABLY THINK OF PELOTON. THERE'S A NEW KID ON THE BLOCK ZWIFT, WHICH IS SOME CYCLISTS USE WHEN THEY CANNOT WRITE OUTSIDE. THIS TAKES YOU INSIDE THE METAVERSE. TIM STENOVEC TOOK A RIDE WITH THE COMPANY CEO. TIM: NOT HAVE TO CATCH YOU. I'M CHASING YOU NOW.
WHERE IS THIS? THAT IS WHAT I AM WAITING FOR. YOU LEFT ME IN THE DUST. WHEN IT COMES TO INDOOR CYCLING, EVERYBODY HAS HEARD OF PELOTON. ZWIFT IS WHAT A LOT OF THE SERIOUS CYCLISTS USE WHEN THEY ARE NOT ABLE TO WRITE OUTSIDE. A SMART TRAINER NEXT APPS AND THEY CAN ADJUST TO MAKE IT HARDER, LIKE IF YOU'RE GOING UP A HILL. ONE OF THE APPS IS ZWIFT IT HELPS YOU EXERCISE BUT IT IS A GAME. YOU'RE PEDDLING YOUR BIKE IN
THE REAL WORLD WHAT YOU HAVE THIS AVATAR. I WANTED TO LEARN MORE ABOUT ZWIFT I THOUGHT THERE WAS NO BETTER WAY TO DO THAT THAN TO GO FOR A RIDE WITH THE COMPANY CEO. I AM IN NEW YORK CITY. YOU ARE IN LONG BEACH RIGHT NOW. WE'RE 3000 MILES AWAY. WE'RE ACTUALLY RIDING TOGETHER ON SCREEN. IS THIS THE METAVERSE TO YOU? >> ABSOLUTELY. IT IS THE METAVERSE.
IT IS A VIRTUAL SPACE WHERE PEOPLE COME TOGETHER. THEY ENGAGE. THEY BUILD COMMUNITIES. IF YOU LOOK AT THE CLUBS WE HAVE WE HAVE WELL OVER 20 CLUBS. IT'S INTERESTING. THE COMMUNITY IS UNIQUE TO ZWIFT . TIM: HOW DO YOU DEVELOP COURSES? >> WE HAVE A FANTASTIC CREATIVE TEAM.
THESE MAGICAL PLACES ARE THE KIND OF MAPS THAT OUR COMMUNITY WOULD LIKE TO SPEND MORE OF THEIR TIME ON. THAT IS PARTLY BECAUSE WE CAN DO CRAZY THINGS. WE CAN CREATE TUNNELS UNDER THE WATER AND IN THE SEABED. WE CAN CREATE ROSE ABOVE MANHATTAN. THERE ARE OTHER PEOPLE THAT CAN REPLICATE AND BE MORE OF A SIMULATOR. WE WANT TO BE OUR OWN THING. WE CAN ENHANCE WHAT THE REAL WORLD IS AND JUST MAKE IT MUCH MORE INTERESTING, DO THINGS THAT YOU OTHERWISE CANNOT DO.
TIM: WE SEE A LOT OF COMPANIES RAISING PRICES BECAUSE OF INFLATION. MY CORRECT IN THINKING YOU GUYS HAVE NOT RAISED PRICES? >> WE RAISED PRICES FIVE YEARS AGO BUT WE HAVE NOT DONE SO SINCE THEN. BE HONEST, THE COST OF RUNNING OUR BUSINESS HAS GOTTEN MORE EXPENSIVE. IT HAS BEEN TOUGH. THE SUPPLY CHAIN ISSUES ARE REAL.
WE ARE TRYING TO RUN A BUSINESS THAT IS PROFITABLE AT SOME POINT, IT IS NOT AT THE MOMENT. WE ARE FOCUSING ON ONBOARDING AS MANY CUSTOMERS AS POSSIBLE AND TRYING TO MAKE THE PRICING ACCESSIBLE. TIM: YOU HAVE RAISED OVER HALF A BILLION DOLLARS, YOUR INVESTORS WANT TO SEE A RETURN, WHAT IS THE EXIT FOR THAT? >> WE HAVE ASPIRATIONS OF TAKING THE COMPANY PUBLIC. THERE'S NO DOUBT ABOUT IT ARE INVESTORS HAVE INVESTED IN THE BUSINESS BECAUSE IT THINK WE WILL BE THE CATEGORY LEADER.
WE BELIEVE WE CAN DO THAT THROUGH PRODUCT. TIM: TAKE US INTO THE DECISION TO LAUNCHER CYCLES AND TALK TO US ABOUT THE RECEPTION. >> BACK IN SEPTEMBER WE AND -- LAUNCHED THE HAND CYCLE. THOSE USING IT WERE DISABLED. THIS IS ABOUT LIVING UP TO OUR VALUES WHICH IS ABOUT, DIVERSITY AND INCLUSIVITY. WE HAVE SOME RESPONSIBILITY IN MAKING SURE WE MAKE THOSE INVESTMENTS. TIM:
WHAT IS THE BREAKDOWN OF ZWIFT, MALE VERSUS FEMALE? >> 80% MEN, 20% WOMEN. THERE IS A LOT OF WORK TO BE DONE. THIS IS WHY THE SPONSORSHIP OF THE WOMAN IS SO IMPORTANT. TAKE ME THROUGHOUT AI THROUGH THAT. HOW DOES THAT TRANSLATE TO MORE PEOPLE PAYING $15 MORE PER MONTH. >> IF YOU SPONSOR BY GRACE -- RACE BIKE RACE.
THE OPPORTUNITY CAME UP TO RELAUNCH THE WOMAN'S RACE, WE JUMPED ON THAT. WE HAVE TO FIND A SPRINT TO DO. TIM: THAT WAS FAST. I FEEL SO BAD I AM THROWING MY SWEATY TOWEL. YOU USED TO WORK AT A BANK. >> YES. TIM: NOW YOU RIDE BIKES ALL DAY.
>> I STARTED MY CAREER ON WALL STREET MANY YEARS AGO. ONE OF THE INSPIRATIONS FOR STARTING ZWIFT WAS TO RE-CREATE MY COMMUNITY, MY EXPERIENCE, THE COMPETITION, THE TRAINING THAT I HAD IN CENTRAL PARK. TIM: WHAT DOES ZWIFT LOOK THREE TO FIVE YEARS FROM NOW? >> THERE WILL BE A CONVERGENCE. IT'S OUR JOB TO MAKE THE INTERPLAY BETWEEN INDOOR AND OUTDOOR AS SEAMLESS AS POSSIBLE SO THAT WHAT IS NOT LOST IN THAT INTERPLAY IS A SOCIAL CONNECTION AND THE ABILITY TO SHARE EXPERIENCES. THAT IS A BIG UNLOCK FOR HOW WE CAN CONTRIBUTE TO THE CYCLING INDUSTRY. TIM: I HAVE NEVER DONE ANYTHING LIKE THIS BEFORE IN TERMS OF INTERVIEWS.
>> I HAVE NEVER DONE THIS BEFORE EITHER. BUT I AM TOLD THAT THERE ARE SOME TECH LEADERS WHO, ION -- ON A MONTHLY BASIS GET ON ZWIFT AND HAVE THEIR CATCH OF CALLS. THEY FIND IT AMUSING TO BE ABLE TO GET EXERCISE AT THE SAME TIME. TIM: I'M GOING TO CATCH YOU. >> HERE WE GO. OK.
THAT'S ENOUGH FOR ME. [LAUGHTER] THAT'S MY WORKOUT FOR TODAY. TIM: VIRTUAL HIGH FIVE. THANKS. >> SEE YOU AGAIN. TIM: LET'S DO IT AGAIN. ED: QUICK TAKES TIM STENOVEC. BREAKING ON THE BLOOMBERG TERMINAL. ELON MUSK HAS DEFEATED THE
TESLA SHAREHOLDER SUIT ON THE 2018 TWEET ABOUT TAKING TESLA PRIVATE. THE JURY HAS FOUND THAT ELON MUSK DID NOT LEAD -- MISLEAD THE PUBLIC ABOUT THE TESLA TAKE PRIVATE DEAL. WE'LL HAVE MORE ON THAT IN THE COMING DAYS. THAT DOES IT FOR THIS EDITION
OF BLOOMBERG TECHNOLOGY. TAK -- CHECK OUT OUR PODCAST, WHEREVER YOU GET YOUR PODCAST. WHAT A WEEK. THIS IS BLOOMBERG.
2023-02-04