'Bloomberg Technology' Full Show (05/02/2023)
>> FROM THE HEART OF WHERE MONEY, AND EFFICIENT AND POWER COLLIDE, FROM SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY" WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: CLIMBED CAROLINE HYDE AND BLOOMBERG'S WORLD HEADQUARTERS. ED: AND I AM ED HAD LOW -- ED LUDLOW IN SAN FRANCISCO. CAROLINE: DISRUPTION HITS HIRING, BUSINESS MODELS, AND MORE. WE WILL DISCUSS IT WITH STEVE WOZNIAK. ED:
WE WILL SIT DOWN WITH THE CEO OF UBER AS IT POSTS STRONG EARNINGS. CAROLINE: THE CEO OF SOPHIA AMID THE BANKING SYSTEM TERM I'LL -- BANKING SYSTEM TURMOIL AS IT PARTNERS WITH EXPEDIA TO CREATE A REWARDS PROGRAM. LET'S DIG IN ON THESE MARKETS BECAUSE WE ARE NERVOUS. WE ARE FOCUSING ON THE FEDERAL RESERVE, WHAT DOES THAT MEAN FOR THE MACRO? WHAT DOES IT MEAN FOR THE BANKING SYSTEM? WE ARE UP BY 1.5% ON THE NASDAQ WITH THE KBW BANK INDEX IS FALLING, 4.81%.
THE RIPPLE AND REPURCUSSIONS COMING FROM FIRST REPUBLIC STILL BEING DIGESTED AS WE WORRY ABOUT THE STRENGTH OF THE FINANCIAL SYSTEM. THE TWO NEW YIELD SPIRALING -- THE 10 YEAR YIELD IS SPIRALING -- 10 YEAR YIELD IS SPIRALING DOWN. WE ARE NOT SEARCHING FOR SAFETY, WE ARE LOOKING FOR RISK ASSETS IN BITCOIN. MAYBE THIS IS ALSO LINKED TO THE BANKING TURMOIL, THE WORRY ABOUT THE SOLIDITY OF YOUR NORMAL FINANCIAL SYSTEM. UP MORE THAN 3%. WE HAVE COME BACK FROM THE 30,000 LEVEL. DIG INTO THE MICRO. ED: THE RIPPLE OF THAT, THERE ARE
FEW MOVERS ON THE UPSIDE IN THE TECHNOLOGY SECTOR. I FOUND TWO, IN XP -- NXP SEMICONDUCTOR, ONE OF THE BEST PERFORMING STOCKS ON THE NASDAQ 100 AND THE ONLY MEGA CAP IN THE GREEN THIS TUESDAY. YOU MENTIONED CRYPTO, THAT IS SUPPORTING CRYPTO RELATED STOCKS LIKE COINBASE, HIGHER BY .8%. IT HAD BEEN HIGHER AFTER THE COMPANY ANNOUNCED IN INTERNATIONAL DERIVATIVES EXCHANGE. U.S. REGULAR DIGITS ARE ONGOING.
WESTERN ALLIANCE, ANOTHER REGIONAL BANKING, LOWER. WE CONTINUE TO TRACK THAT CONTAGION RISK. THE MAIN EARNINGS MOVER IS UBER. WE LOOKING AT THE BIGGEST ADJUSTMENT SINCE NOVEMBER, OUTPERFORM AND IN THE QUARTER, STRONG -- THERE IS STRENGTH IN RIDING AND DELIVERING. WE WILL GET TO THAT LATER. LYFT IS MODESTLY HIGHER. THEY ARE SO CLOSELY LINKED AS MARKET COMPETITORS. CAROLINE: FOR A MOMENT, LET'S TALK ABOUT
ONE COMPANY DID NOT MENTION IN THE MICRO. WE WILL TALK ABOUT CHECK GPT, HOW IS THAT ENDING THE TECH INDUSTRY? THAT SEEMS TO BE THE CASE FOR CHEGG WHICH IS DOWN BY 50%. THE CHABAD TOOL IS THREATENING ITS HOMEWORK SERVICES. THEY NOTICED A SPIKE IN STUDENT INTEREST IN CHECK GPT -- CHAT GPT SINCE MARCH. WHAT DOES AI AND EDUCATION LOOK LIKE GOING FORWARD? HOW DO THEY HARNESS EACH OTHER? LET'S LOOK INTO GENERATIVE AI.
TEACH AI IS A LOOK AT AN INITIATIVE TO HELPING EDUCATORS TEACH WITH AI ABOUT AI. HOW MUCH IS AI TEACHING KIDS THE TEACHERS? >> I DON'T KNOW ABOUT TEACHING KIDS INSTEAD OF TEACHERS, BUT WHAT EVERY SCHOOL AND TEACHER AND STUDENT RECOGNIZES IS THAT SINCE CHECK GPT -- CHAT GPT CAME OUT, THEY ARE ASKING, CAN BASIS FOR MY HOMEWORK? WHEN I SHOWED THIS TO MY KID, HE ASKED IF I'M ALLOWED TO THIS FOR SCHOOL BUT THAT HE ASKED WHAT IS THE POINT OF SCHOOL IF YOU CAN DO ALL THIS. THESE ARE QUESTIONS NOBODY HAS FROM ANSWERS TO AND THE TECHNOLOGY CREATORS ANNOUNCING HOW SCHOOLS SHOULD BE USING IT AND SCHOOL LEADERS ARE RECEIVING THE TECHNOLOGY COMING OUT WONDERING HOW WE REACT WHEN IT IS MOVING SO FAST. THE GOAL
OF TEACH AI IS TO BRING TOGETHER LEADERS WHO ARE CREATING THESE TECHNOLOGIES WITH EDUCATION LEADERS, CON ACADEMY, THE COLLEGE BOARD, AND GLOBAL EDUCATION LEADERS ACROSS THIS COUNTRY TO ANSWER THESE QUESTIONS ABOUT HOW SHOULD EDUCATION EVOLVE IN AN AGE OF AI. CAROLINE: FOR THIS ROAD MANY BUSINESS MODELS? YOU ARE LOOKING AT ANKLE CORPORATE AI CURRICULUM INTO PLATFORM TO REACH 150 BILLION STUDENTS BY 2030. WHAT IS EDUCATION GOING TO LOOK LIKE BY 2030? WILL THEY REALLY BE USING ONLINE TOOLS? >> THE CURRENT EDUCATION SYSTEM WE USE, MOST STUDENTS READING BOOKS WAS DESIGNED ON THE INVENTION OF THE PRINTING PRESS 600 YEARS AGO. WE NEED TO RETHINK HOW WE DO EDUCATION IN A TIME WHEN INFORMATION IS AVAILABLE AT YOUR FINGERTIPS AND AI CAN SYNTHESIZE AND CREATE FOR YOU.
OUR GOAL IS JUST TO GET STUDENTS TO MEMORIZE A LOT OF INFORMATION AND PRACTICE REPETITIVE TASKS, BUT HELPING STUDENTS BECOME CREATORS AND PROBLEM SOLVERS USING AI AS A SUPERPOWER. CAROLINE: ARE YOU ON THE SIDE THAT AI AUGMENTS RATHER THAN COMPETES? OR ARE YOU THINKING EDUCATION IS GOING TO HAVE TO BID IT BECAUSE THE JOB MARKET IS GOING TO HAVE TO BID IT? HADI: BOTH OF THOSE ARE TRUE. AI AUGMENTS BUT WE NEED TO TEACH STUDENTS NOT JUST THE SKILLS OF THE PAST WITH THE SKILLS OF THE FUTURE. EVERY WORKPLACE IS ASKING ITS WORKERS TO FIGURE OUT HOW THIS CAN MAKE YOU MORE PRODUCTIVE. TODAY, MANY SCHOOLS ARE BANNING AI BECAUSE IT IS CONSIDERED CHEATING. THE CHEATING PEOPLE ARE TRYING TO STOP BY SCHOOLS IS WHAT EMPLOYERS WANT THEIR EMPLOYEES TO DO.
IF THIS MAKES YOU WORK FASTER, PLEASE DO IT. IF IT REDUCES THE TIME SPENT ON ANY KIND OF TASK. ED: DOES -- HAVE ANY KIND OF INSIGHT INTO HOW STUDENTS AT THE HIGH SCHOOL LEVEL OR COLLEGE LEVEL ARE ACT USING GENERATIVE AI TOOLS ARE ACTUALLY USING GENERATIVE AI TOOLS -- ARE ACTUALLY USING GENERATIVE AI TOOLS? HADI: THE BEST WAY TO SEE THAT IS BY LISTENING TO PARENTS, STUDENTS, AND TEACHERS AND IT IS MUCH MORE ANECDOTAL.
MY NEIGHBOR'S DAUGHTER GOT AN F BECAUSE A TEACHER ACCUSED HER OF USING CHATGPT. SHE IS INSISTING SHE DID NOT USE IT. THAT IS A STORY HAPPENING ALL AROUND THE WORLD. IT IS NOT EASY TO KEEP TRACK OF BECAUSE STUDENTS WHEN THEY USE THESE TOOLS USE THEM AT HOME AND THEY KNOW TO CHANGE OF THE WRITING AND PERSONALIZE IT. THE REAL ISSUE IS NOT TO VIEW USING THE TECHNOLOGY IS CHEATING BUT TO FIGURE OUT HOW WE MOVE THE GOALPOSTS OF EDUCATION, HOW DO WE TEACH CREATIVITY, CAN MEDICATION SKILLS, PROBLEM-SOLVING SKILLS AND TECHNOLOGICAL INFANCY SO STUDENTS LEARN THE STUFF WE WANT THEM TO LEARN AND USE THESE TOOLS TO BE MORE PRODUCTIVE? ED: IN CHAGNON -- IN CHEGG'S CASE, THEY ARE PLUNGING BECAUSE THEY ARE -- THEY ARE BEING REPLACED BY CHATGPT. IS THAT WHAT YOU ARE SEEING, THAT GENERATIVE AI TOOLS ARE DISPLACING TRADITIONAL ONLINE EDUCATION TOOLS? HADI: TOOLS LIKE CHATGPT CAN HELP THEM DO WHAT ALL THE CURRENT HOMEWORK LOOKS LIKE TODAY.
ONCE THAT IS OUT THERE, STUDENTS WONDER, CAN USE THIS FOR MY HOMEWORK AND TEACHERS, CLASSROOMS, SCHOOLS WONDER, HOW CAN I CHANGE WHAT HOMEWORK IS BECAUSE WHAT IS THE POINT IF A STUDENT PLUGS IT IN AND JUST GETS AN ANSWER AND DOES NOT USE THEIR HEADS? THERE IS GOING TO BE DISRUPTION WITHIN EDUCATION TECHNOLOGY IN CLASSROOMS AS WE RETHINK NOT ONLY TOOLS FOR EDUCATION BUT HOW TEACHING IS DONE AND THE PURCHASE -- THE PURPOSE OF EDUCATION. CAROLINE: YOU HAVE BEEN IN THE FOR-PROFIT SIDE. WHEN YOU ARE NOW IN A NONPROFIT FOCUS, HOW MUCH ARE YOU TALKING WITH GOVERNMENT? HOW MUCH ARE YOU THINKING ABOUT THE ETHICAL REPERCUSSIONS OF WEAR ARTIFICIAL INTELLIGENCE IS LEADING US, WHETHER IT BE FROM CHILDREN OR MORE BROADLY ABOUT THE WAY IN WHICH WE USE IT AS HUMANKIND AND WHAT IT ULTIMATELY MEANS FOR ALL OF US? HADI: THAT IS A FANTASTIC QUESTION. IT IS THE PURPOSE OF WHAT WE ARE ANNOUNCING TODAY WHICH IS TO BRING TOGETHER FOR-PROFIT AND PRIVATE CORPORATE LEADERS, THE TECHNOLOGY CREATORS, WITH EDUCATING LEADERS TO HAVE THIS DIALOGUE TO FIGURE OUT HOW TO SAFELY AND ETHICALLY INTEGRATE AI. CAROLINE: AND NOT PUT IT BACK IN ITS BOX? IF YOU DON'T THINK WE SHOULD SLOW DOWN? HADI: THERE IS THE EXTREME, RELISTED TECHNOLOGY AND SEE WHAT HAPPENS, THE OTHER IS TO PANIC AND STOP IT. THE MIDDLEGROUND IS TO LEARN
HOW TO HARNESS IT WITH SAFETY AND ETHICS AS PART OF THE CONVERSATION. THAT IS WHY WE ARE BRINGING TOGETHER NOT ONLY TAKE LEADERS AND EDUCATION LEADERS BUT GOVERNMENT LEADERS. THERE ARE MINISTRIES FROM AROUND THE WORLD PARTICIPATING IN THIS WORK BECAUSE THEY WANT TO BE AT THE FOREFRONT OF HOW WE CHANGE EDUCATION. CAROLINE: FOR GOOD, OVERLY. -- FOR GOOD, HOPEFULLY. THANK YOU FOR JOINING US. MORE ON THE GLOBAL SPHERE RIGHT
NOW. ED: -- TECHNOLOGIES IS BREAKING GROUND ON A NEW CHIP FACTORY. THE GERMAN COMPANY IS HOPING TO GET ANOTHER $1 BILLION -- ANOTHER ONE BILLION EUROS FROM THE EUROPEAN UNION. THE CEO ALSO SPOKE ABOUT THE CHIPS ACT AND SELF-RELIANCE AND IT SEMICONDUCTOR INDUSTRY -- IN THE SEMICONDUCTOR INDUSTRY. >> I WOULD APPRECIATE SOME ALIGNMENT IN THE DEMOCRATIC WORLD ON THE CHIPS ACT. NO COUNTRY WILL ACHIEVE SELF SUFFICIENCY. IT IS ABOUT PRODUCING ONE-SIDED
DEPENDENCIES. SOME ALIGNMENT WOULD BE FOR THE BETTER GOOD OF THE WHOLE INDUSTRY AND ECONOMY. ED: COMING UP, UBER IS OUT WITH EARNINGS. WE SIT DOWN WITH THE CEO, DARA KHOSROWSHAHI. THIS IS BLOOMBERG.
CAROLINE: ON A DAY WERE TECH STOCKS ON THE DOWNSIDE, THERE IS IN OUTPERFORMER WE HAVE TO TURN OUR ATTENTION TO. UBER OUT WITH EARNINGS AND ABSOLUTELY ROCKETING. THE REVENUE BEAT RECORD PROFITABILITY, FREED CASH, AND THEY PROMISE THEY WILL BE EXPANDING PROFITABILITY. ALL OF THIS AS USERS ARE PERHAPS LESS THAN EXPECTANT. THOSE USERS ARE ACTIVE. RIDING MORE, ORDERING MORE. I TOOK A DRIVE FROM THE AIRPORT
YESTERDAY AND WHEN I CHECKED OUT LYFT VERSUS UBER, UBER HAS A LOWER PRICE POINT. HOW MUCH THE COMPETITION AND FOCUS ON PRICES, THAT COMING DOWN, AND IF THAT WILL ULTIMATELY IMPACT THE BUSINESS MODELS. UBER IS ABLE TO SHOW ITS PROGRESS OVER EARNINGS. ED:
STRONG IN THE QUARTER, STRONG OUTLOOK GOING INTO THE SECOND QUARTER, 800 TO $850 MILLION. THEY HAD THAT 2024 GOAL WHEN IT COMES TO ADJUSTED -- WE WELCOME OUR BLOOMBERG TV AND RADIO AUDIENCES WORLDWIDE. JOINING US NOW, THE CEO OF UBER, DARA KHOSROWSHAHI. AND OF COURSE, EMILY CHANG JOINING ME. EMILY:
WE ARE SEEING A STRONG REACTION IN THE STOCK TODAY. I WANT TO FOCUS ON A DELIVERY BECAUSE THAT IS DISCRETIONARY AND TIMES ARE CAP. PEOPLE ARE BEING MORE PICKY ABOUT WHAT THEY SPEND ON. ARE YOU EXPECTING ANY PULLBACK IN DELIVERY? WHY OR WHY NOT? DARA: THANK YOU FOR HAVING ME, IT IS GREAT TO BE HERE, ESPECIALLY IN THE CONTEXT OF SUPERSTRONG RESULTS. WE SAW A REALLY SOLID GROWTH THIS LAST QUARTER IN TERMS OF COST AND CURRENCY, GROWING ABOUT 12% ON A YEAR ON YEAR BASIS.
WE ARE SEEING THE HABIT OF FREQUENCY FOR DELIVERY. CONSUMER WAS UP ON A YEAR ON YEAR BASIS. BASKET SIZE CONTINUES TO BE HIGHER AND WE SAW OUR GROSS BOOKINGS GROWTH ACCELERATE FROM JANUARY TO FEBRUARY TO MARCH.
WE EXPECT DELIVERY GROWTH TO BE HIGHER THAN WHAT WAS IN Q1. WE ARE NOT SEEING ANY KIND OF A SIGNAL OF A SLOWDOWN. WHILE THERE MAY BE A SLOWDOWN GOING DOWN IN TERMS OF THE ECONOMY, GENERALLY THE CONSUMER REMAINS STRONG. THE CONSUMER IS ANYMORE MONEY ON EXPERIENCES AND I THINK FOOD IS PART OF THAT EXPERIENCE. WE AS A COMPANY AND BECAUSE OUR
GLOBAL SCALE AND SIZE AND OUR BRAND ARE GENERALLY GOING FASTER THAN THE DELIVERY CATEGORY. IF YOU PUT THAT ALTOGETHER ALONG WITH PROFITABLE GROWTH, YOU GET TO GOOD OUTCOMES REGARDLESS OF THE ENVIRONMENT. EMILY: LYFT HAS A NEW CEO. THEY HAVE MADE IT CLEAR THAT THEY WANT TO COMPETE. WHAT IS THE RISK OF A PRICE WAR? DARA: YOU NEVER KNOW AND YOU CANNOT PREDICT THE FUTURE, BUT WHAT WE HAVE SEEN IS THAT THEY WANT TO COMPETE BASED ON COMPETITIVE PRICING.
WHAT WE ARE SEEING AND THE MARKETPLACE, YOU MENTIONED THE BEGINNING THAT UBER PRICING IS QUITE COMPETITIVE IN THE MARKETPLACE. IF YOU HAVE UBER AND LYFT COMPUTING NOT ON THE LOWEST-PRICED BUT WHO HAS THE BEST EXPERIENCE AND THE BEST BRAND AND BEST RELIABILITY, I THINK WE CAN BOTH DEFINE -- BOTH DO FIND. THE MOBILITY SECTOR IS GROWING. PEOPLE ARE RETURNING TO WORK, TO THE OFFICE. WE ARE SEEING THOSE TAILWINDS
AND I WOULD NOT BE SURPRISED IF LYFT BANK DOES, TOO. ED: WELCOME TO OUR BLOOMBERG TV AND RADIO AUDIENCES. WE ARE WITH THE CEO OF BLOOMBERG, DARA KHOSROWSHAHI. THAT OUTLOOK OF CONSUMER STRENGTH, HOW LONG DOES IT LAST? ARE YOU SEEING PRESSURE ON THE CONSUMER OR GRANULAR DATA ABOUT HOW YOU CAN SEE THE REST OF THE YEAR? DARA: WE ARE NOT SEEING ANY KIND OF PRESSURE AS IT WAS IT'S TO CONSUMER SPENDING -- AS IT RELATES TO CONSUMER SPENDING. PART OF IT IS BECAUSE OF OUR SUPPLY SITUATION AND GENERALLY SUPPLY GETTING BETTER. WE ARE SEEING DRIVERS TALK
ABOUT INFLATION MORE. 70% OF DRIVERS COMING ONTO THE PLATFORM HAVE SAID INFLATION, THE AFFORDABILITY OF GROCERIES, ETC. HAS PLAYED A PART IN THEIR DECISION TO COME ONTO THE PLATFORM AND JOIN UBER TO AUGMENT THEIR EARNINGS AND BRING IN A HEALTHY EARNING SET AS IT RELATES TO THE MARKETPLACE. WE ARE SEEING SOME SIGNS ON THE ENTERPRISE SIDE OF WEAKNESS IN TERMS OF UBER FOR BUSINESS. WHEN WE LOOK AT UBER FOR BUSINESS, NEW CLIENT SIGNINGS ARE SLOWER THAN WHAT THEY WERE PACING BEFORE. I THINK YOU ARE SEEING COMPANIES ARE BE MORE CAREFUL, THEY ARE CUTTING COSTS, OFTEN THEY ARE CUTTING PERSONNEL. THAT WEAKNESS IS NOT TRANSLATED
TO THE CONSUMER. THE CONSUMER RECEIVING VERY STRONG AND WE DON'T SEE ANY SIGNAL OF WEAKNESS THERE. ED: ENTERPRISE FACING BUSINESS IS FREIGHT WHICH YOU FIND SEPARATELY. WHAT METRICS WOULD GUIDE A TIMELINE TO SELL OR SPIN OFF UBER FREIGHT? DARA: AT THIS POINT THE FOCUS FOR FREIGHT IS TO OPERATE THE BUSINESS IN AN OPTIMAL WAY. RIGHT NOW THE FREIGHT BROKERAGE BUSINESS AND TRANSPORTATION BUSINESS IS READJUSTING PRICING SIGNIFICANTLY. PRICES WERE SKYHIGH TWO YEARS AGO. THEY HAVE COME DOWN
SIGNIFICANTLY FOR TWO YEARS. WHAT WE ARE GOING TO SEE IS ESSENTIALLY PRICING BOTTOMING OUT SOMETIME IN THE NEXT COUPLE OF MONTHS. AS WE SEE THAT, THEN WE CAN BE IN POSITION TO GROW OUR FREIGHT BUSINESS, USE OUR DIGITAL ACUMEN , AND THE DATA ADVANTAGE WE HAVE IN ORDER TO PROVIDE A BETTER SERVICE FOR SHIPPERS AND BE THE BEST PLATFORM FOR TRUCKERS. THAT IS THE ULTIMATE GOAL. WE WILL OPTIMIZE TO MAXIMIZE SHAREHOLDER VALUE.
THAT IS WHAT WE ARE HERE FOR. BUT TODAY THE FOCUS IS ON BUILDING THE BEST DIGITAL FREIGHT SERVICE WE CAN. EMILY: TENS OF THOUSANDS OF FOLKS HAVE BEEN LAID OFF IN THE INDUSTRY. YOU HAVE SAID NO COMPANYWIDE LAYOFFS BUT YOU HAVE DONE TARGETED LAYOFFS AND PERFORMANCE RELATED CUTS.
HOW ARE YOU THINKING ABOUT HEADCOUNT RIGHT NOW AND ARE YOU CONSIDERING A BROADER RIFF IF THINGS CONTINUE TO GET WORSE LOOKING ACROSS THE BROADER LANDSCAPE? DARA: I DON'T THINK COMPANIES SHOULD ALL OF A SUDDEN GET DISCIPLINED ABOUT HEADCOUNT BECAUSE THEY HAVE TO. I THINK YOU HAVE TO HAVE DISCIPLINE ON HEADCOUNT AND COST AS A CONTINUING WAY YOU OPERATE GOING FORWARD DAILY, WEEKLY, MONTHLY, YEARLY. YOU HAVE SEEN THAT FOR US. IF YOU LOOK AT OUR HEADCOUNT GROWTH FROM 2019 TO NOW FOR THE BASE BUSINESS, FOR OUR MOBILITY AND DELIVERY BUSINESS, TOTAL HEADCOUNT GROWTH IS UP ABOUT 10% VERSUS BOOKINGS GROWTH THAT IS APPROACHING 70%. WE HAVE ALWAYS BEEN VERY DISCIPLINED IN TERMS OF HOW WE MANAGE COSTS. WE TALKED ABOUT THIS YEAR, EVEN THOUGH WE ARE SHOWING HUGE TOP LINE GROWTH AND PROBABILITY GROWTH, WE ARE NOT LETTING GO THAT DISCIPLINE AND THAT HAS LEARNED -- THAT HEADCOUNT IS GOING TO BE DOWN. THAT ALLOWS THE COMPANY TO
FOCUS ON EXECUTING AND ELEVATING AND NOT LOOKING OVER YOUR SHOULDER. RIGHT NOW, THE BUSINESS IS EXECUTING WELL. IF WE KEEP EXECUTING WELL, WE ARE NOT GOING TO HAVE A RIFF. IF WE DON'T, THEN WE ARE GOING TO ADJUST. WE HAVE ALWAYS ADJUSTED AT UBER IN A TIMELY WELL. EMILY: YOU ROASTING TO UBER CEO, DARA
KHOSROWSHAHI. YOU HAVE READ SO MANY COMPANIES, AFTER 9/11 AND THROUGH A FINANCIAL CRISIS. WE SAW FIRST REPUBLIC IN A FIRE SALE TO JP MORGAN. HOW ARE YOU THINKING ABOUT WHAT IS AHEAD, YOUR OUTLOOK AND HOW LONG DOES THIS LAST? DARA: I COULD NOT TELL YOU HOW LONG THIS LASTS. AS A COMPANY, YOU HAVE GOT TO BE PREPARED. THE COST, THE CAPITAL FOR THE BANKING SYSTEM TENDS TO BE HIGHER LEVERAGE. FOR THE STARTUP ECOSYSTEM, IT
IS GETTING MUCH MORE DEAR. I THINK RATES ARE GOING TO STAY HIGHER FOR LONGER BECAUSE DESPITE PEOPLE PREDICTING RECESSION, IS NOT THERE YET. I THINK A BASE ACROSS THE BOARD, WHETHER YOU ARE A BANK OR TECHNOLOGY COMPANY, YOU HAVE TO BE SUPER CONSERVATIVE AS IT RELATES TO YOUR BALANCE SHEET AND YOU HAVE TO BE INCREDIBLY DISCIPLINED IN TERMS OF CAPITAL ALLOCATION. I THINK THAT GOVERNMENT IS GOING TO HELP WITH LARGER GLOBAL PLAYERS WHO ARE MORE DIVERSIFIED. WE ARE EXACTLY THAT. THAT IS WHY WE ARE SHOWING HIGHER THAN CATEGORY GROWTH AND STRONGER THAN CATEGORY MARKET EXPANSION AND NO SIGNIFICANT FREE CASH FLOWS -- NOW A SIGNIFICANT FREE CASH'S. WE ARE PREPARED TO DELIVER ON THE PROCESS -- ON THAT PROMISE WHETHER THE ENVIRONMENT IS STRONG, MEDIUM, OR WEEK. ED:
I WENT TO THE EARNINGS TRANSCRIPT, NO MENTION THAT THE FIRST QUESTION WAS ABOUT AI. ARE YOU GOING TO ACCELERATE YOUR INVESTMENTS IN AI? ARE YOU AN AI COMPANY? DARA: WE HAVE BEEN IN AI SINCE I HAVE BEEN HERE. THE THING ABOUT OUR PRICING ALGORITHMS, OUR ROUTING ALGORITHMS. WHEN WE DECIDE TO BATCH A DELIVERY ORDER OR NOT. EVEN TECHNOLOGY SUCH AS RECOGNITION OF YOUR LICENSE OR YOUR INSURANCE CARD, ETC. ALL OF THESE ARE AI DRIVEN AND THEY HAVE BEEN PART OF HOW WE OPERATE AS A COMPANY. WHAT WE ARE SEEING NOW IS AS THESE MODELS MORE CAPABLE AND LARGER, YOU CAN TRAIN THEM OVER LARGER DATASETS.
WE WOULD HAVE AN ALGORITHM PRICING BY CITY BY CITY, NOW OUR ALGORITHMS CRISIS GLOBALLY AND EFFICACY OF PRICING AND MATCHING IS INCREDIBLY POWERFUL. BECAUSE WE HAVE MORE DATA THAN ANYBODY ELSE ACROSS A MULTITUDE OF BUSINESSES, WE THINK AI WILL BE A POWERFUL TAILWIND FOR US. ED: ARE YOU A CHATGPT USER? DARA: I AM A CHATGPT USER. MY SKILLS AS A PROMPT ENGINEER ARE NOT WHAT I WANT THEM TO BE. ED: OUR THANKS TO DARA KHOSROWSHAHI AND TO OUR OWN EMILY CHANG. CAROLINE: WHAT A GREAT QUESTION TO LEAVE IT ON.
IT IS TIME FOR SOME TALKING TECH. WE WILL STICK WITH THE THEME OF ARTIFICIAL INTELLIGENCE. IBM'S CEO SAYS IATA TECHNOLOGY IS PUMPING PEOPLE TO STOP JOBS THAT ARE BELIEVED TO BE REPLACED BY OFFICIAL INTELLIGENCE. THAT IS OVER THE NEXT FIVE YEARS ALONE. SAMSUNG SAID THIS WEEK IT WOULD BEEN EMPLOYEES FROM USING GENERATIVE AI TOOLS. THEY ARE CONCERNED DATA SENT TO AI PLATFORMS COULD BE STORED ON EXTERNAL SERVERS MAKING IT DIFFICULT TO DELETE.
SO MUCH MORE TO DIG INTO. THE REAL WORLD IMPACT OF GENERATIVE AI, WE HAVE BEEN TALKING ABOUT EDUCATION, WE ARE LOOKING ABOUT WHAT IT MEANS FOR JOBS AND EVEN FOR THOSE STRIKING IN HOLLYWOOD, THE AIRPORT ABOUT CHATGPT -- THEY ARE WORRIED ABOUT CHATGPT. ED: WE SAW IN THE MARKETS THE IMPACT TO THE BUSINESS MODEL AND INVESTORS REALIZING THE IMPACT TO THE BUSINESS MODEL. CAROLINE: AND SUDDENLY PRESSING IT IN. THE FACT THAT IT IS A 40% DROP IN THE VALUE OF A COMPANY LIKE CHEGG.
THIS IS GOING TO AFFECT VALUE. PRODUCTIVITY, WE HOPE THAT IS ADDITIVE BUT WE WANT TO GET IT WITHOUT SOME DISRUPTION. WE WILL TALK ABOUT IT SO MUCH MORE, WHAT IT MEANS FROM AN ETHICAL BASIS. STEVE WOZNIAK IS JOINING US NEXT. THIS IS BLOOMBERG. ED: WELCOME BACK TO GLOBAL NEWS 24 HOURS A DAY ON AIR AND ON BLOOMBERG QUICKTAKE, POWERED BY MORE THAN 2700 JOURNALISTS AND ANALYSTS IN MORE THAN 120 COUNTRIES.." ED:
WELCOME BACK TO "BLOOMBERG TECHNOLOGY." I AM ED LUDLOW. CAROLINE: TECH STOCKS FITTING SOME OF THE PAIN. WE GO ACROSS TO THE GLOBAL MACRO MOVE AS WE DON'T JUST LOOK AT THE EQUITY MARKETS, LOOK AT WHAT IS HAPPENING IN TERMS OF THE FX MARKET. WE ARE LOOKING FOR SOME SORT OF HAVEN, THE CANADIAN DOLLAR. WE SEE THAT IN THE COMMODITY
SECTOR. BRENT CRUDE UP BY MORE THAN 4.8%. WE ARE WORRIED ABOUT GROWTH, THE SOFTENING AND IT DELIVER MARKET IN THE U.S., THE FOCUS
ON THE FED, THE CHINESE DATA COMING IN SLOWER THAN EXPECTED. ALL OF THIS PAINTS A WORSE MACRO HEADWIND. I ALSO LOOK AT SOVEREIGN BONDS, PHENOMENAL MOVES HAPPENING. THE U.S. FIVE-YEAR DOWN 17 BASIS POINTS. AMAZON IS THE ONLY PORT OF CALL SAFETY AT THE MOMENT.
APPLE IS ON THE DOWNSIDE. CHINESE STOCKS FALL ON MANUFACTURING DATA AND CHEGG IS OFF BY 40%, THAT IS AN MA THAT IS AN -- IT IS AN AI IMPACT ON THE EDUCATION SECTOR. ED: IS A HUGE DISCUSSION TO BE HAD AROUND ARTIFICIAL INTELLIGENCE.
WE WELCOME OUR BLOOMBERG TD -- OUR BLOOMBERG TV AND RADIO AUDIENCES AND BRING IN APPLE COFOUNDER, STEVE WOZNIAK, ACTIVE IN THE FIELD OF AI TECHNOLOGY, ADDED HIS NAME FOR THE OPEN LETTER CAUSING FOR A SIX-MONTH PAUSE ON TRAINING AI TECHNOLOGY MORE POWERFUL THAN CHATGPT TO GIVE RESEARCHERS TIME TO GET A BETTER GRASP ON THE TECHNOLOGY. WELCOME. STEVE: GLAD TO BE HERE. ED: YOU ARE A SIGNATORY, DID THE EFFORT WORK? STEVE: ARE WE DEALING THE DEVELOPMENT OF AI? NO, YOU CANNOT REALLY GIVE YOU CANNOT REALLY -- NOT REALLY. NEW TECHNOLOGY BRINGS THE PLUSES AND MINUSES AND WE ARE SEEING SOME EXAMPLES OF THAT IN THE NEWS AND PRESENTATIONS THAT ARE BEING MADE ABOUT IT. WHEN NEW TECHNOLOGY BRINGS BIG
CHANGES, SOMETIMES RESPONSIBLE, THINK ABOUT THE PLUSES AND MINUSES. I BELIEVE THE APEX OF EVERYTHING THAT IS GOOD IN THE WORLD IS TRUTH. ED: WHAT ARE THE MINUSES? WHY DID YOU SIGN THAT OPEN LETTER? STEVE: I AM A HUMAN BEING AND I'M INFLUENCED BY THINGS I CAN READ AND BY CERTAIN PEOPLE I TRUST. PEOPLE TRUSTED WERE GOING IN THIS DIRECTION AND I WANTED TO BE PART OF IT. I BELIEVE ON THE RESPONSIBILITY. NOT JUST THAT I AM SCARED OF THE BAD SIDES OF AI OR THAT IT IS GOING TO BE HELP FOR US, WHICH IS, BUT NEW TECHNOLOGY BRINGS RESPONSIBILITIES. ED: ONE OF THE CLOSING ENTRIES WAS ELON MUSK. HE THEN STARTED X AI AND HAS
BEEN HIRING FOR HIS OWN STARTUP. WHAT DO YOU MAKE OF THAT? STEVE: I HOPE GREAT THINGS COME FROM IT. I HOPE OF BEING HELD BACK FROM BAD PEOPLE DOING BAD THINGS ON ITS OWN. I ALWAYS THINK OF DREAMS. AND A LOT OF THINGS THAT COME BY OUR DREAMS THAT MAKE SOME SENSE. THEY COULD BE PARTLY REAL, BUT
DREAMS ARE ITS OPINION. THEY TALK ABOUT HALLUCINATIONS COMING OUT OF AI. IF YOU HAD A DREAM AND THOUGHT IT WAS REAL, YOU EXPERIENCE THOSE THINGS IN REAL LIFE.
YOU DID NOT KNOW IT WAS A DREAM, THAT IS ONE POSSIBLE EXPLANATION FOR HIS OPINION -- FOR SCHIZOPHRENIA. I AM ON THE SIDE OF TRUTH. THE FACT OF THAT PEOPLE IN THE WORLD WHO WANT TO SCAM US AND TAKE OVER OUR LIFE, THEY HAVE A NEW TOOL. HOW ARE THEY GOING TO BE ABLE
TO USE IT? CAROLINE: USING THE PHRASE HALLUCINATING, MANY PEOPLE ARE SAYING WE ARE MAKING IT MORE POWERFUL, WE ARE ENCOURAGING PEOPLE TO THINK AI IS GOING TO BE MORE TERRIFYING BECAUSE WE MAKE IT -- BECAUSE WE KEEP MAKING IT OUT TO BE HUMAN. DO WE NEED TO CHANGE OUR TURN OF PHRASE? YOU NEED TO UNDERSTAND AT THE END OF THE DAY THIS IS JUST TECHNOLOGY? STEVE: IT HAS TAKEN US FURTHER IN WHAT WE CAN DO AS HUMANS. IF I AM FED A LOT OF GOOD SOURCE INFORMATION AND I AM A HUMAN EDITOR AND KNOW HOW TO PASS IT ON, IT IS A GREAT TOOL. LOOK AT THE SOCIAL NETWORK AND THE MOVIE "THE SOCIAL DILEMMA." A LOT OF GOOD CAN BRING A LOT OF BAD OF BEING TRACKED AND TRACED.
WHAT IF WE HAD DEVELOPED THE INTERNET WITH PROTOCOLS IN PLACE THAT YOU COULD ALWAYS IDENTIFY ANYBODY AND SPAM WAS IMPOSSIBLE? WHAT IF WE HAVE THAT CHANCE TO SIT BACK AND THINK ABOUT AI A LITTLE BEFORE IT IS HERE? WE DON'T REALLY HAVE THE CHANCE BUT IT IS THAT RESPONSIBILITY I WANT TO TAKE THE SIDE OF. CAROLINE: STEVE WOZNIAK IS OF COURSE THE APPLE COFOUNDER FOR OUR AUDIENCES. PEOPLE HAVE ANTICIPATING THIS COMING NOT JUST SINCE NOVEMBER WHEN PEOPLE SAW CHATGPT COMING TO OUR NORMAL LIVES. YOU HAVE SEEN AROUND THE
CORNERS. WHY WERE YOU NOT WORRIED ABOUT THIS A YEAR AGO? WHY WAS IT NOT ON CHATGPT VERSION THREE THAT STARTED TO BE MORE POWERFUL? WHY NOW GO TO THE ADMINISTRATION AND TO COMPANIES TO SELF REGULATE? STEVE: IT IS BASED ON NEW CYCLES. FIVE YEARS AGO, THE BOOK "SINGULARLY" CANNOT -- "SINGULARITY" CAME OUT AND I WAS GIVING SPEECHES ABOUT HOW THIS IS GOING TO TAKE OVER.
WE WILL HAVE COMPANIES RUNNING WITH NO HUMANS AT ALL. I BACKED OFF OF THAT. . I GOT SCARED OF THAT IT COMES OUT ALWAYS NEGATIVE. AI IS GOING TO TAKE CARE OF ME
SO I WILL HAVE ALL OF MY FOOD AND MY CLOTHING AND MY SHELTER AND MY KIDS AND MY FAMILY AND A LOT OF ENTERTAINMENT AND I WILL BE LIKE A FAMILY PET, TOTALLY TAKEN CARE OF. IF I AM GOING TO BE APEX SOME GREAT, I HAVE THOUGHT ABOUT IT, HOW DO I WANT TO BE TREATED? SO THAT IS WHERE I STARTED FEEDING MY DOGS PLACE TAKES. NO, A COUPLE OF YEARS BEFORE I FINALLY SWITCHED DIRECTIONS BASED OFF OF WHAT ONE OF MY KIDS SAID TO ME. ALL OF THIS GREAT STUFF IN THE WORLD TWO MORE AS HUMANS. WE FOUNDED APPLE, ONE OF MY PRIMARY PURPOSES WAS A PERSON IS ONLY SO CAPABLE. GIVE THEM THE ABILITY TO USE A
COMPUTER AND THEY CAN BE MORE IN CHARGE OF WHERE THEIR LIFE GOES AND BE MORE CAPABLE. I AM ALL FOR THAT. I AM FOR CHANGE BUT ALSO AGAINST THINGS WE USE DISHONESTLY, LIKE THE WOMAN WHO GOT A PHONE CALL AND IT WAS A DEEPFAKE AND HER DAUGHTER'S VOICE PLEADING FOR MONEY. SOME OF US HAVE ALREADY BEEN HIT UP WITH RANSOMWARE ATTACK'S. ED: I TWEETED WHEN -- WHEN I TWEETED YOU WERE COMING ON THIS SHOW, A LOT OF QUESTIONS FROM OUR AUDIENCE. WHY DO WE NOT TALK MORE ABOUT APPLE AND ARTIFICIAL INTELLIGENCE? STEVE: [LAUGHTER] I DON'T KNOW.
I DON'T KNOW WHAT IS GOING ON INSIDE OF APPLE ANYMORE THAN ANYONE ELSE. APPLE MAY HAVE SOME DEEP PROGRAMS GOING ON IN ARTIFICIAL INTELLIGENCE. APPLE LOOKS AROUND AND WHEN THERE IS TECHNOLOGY NO ONE IS USING, WE CAN ASSIMILATED. LOOK WHAT MICROSOFT DID WITH OPEN AI. ED: WHO DO THINK LEAD THE CHARGE?
MICROSOFT PUT US ON THE MAP AT THE BEGINNING OF THIS YEAR BECAUSE OF THE INVESTMENT INTO OPEN AI AND THE INTEGRATION OF OPEN AI. DO YOU SEE MAKE CAP COMPANIES LEADING THE WAY? STEVE: I DON'T TRY TO PICK A WINNER OR A LOSER. THE NEW ONE COULD COME OUT NEXT WEEK FROM SOMEONE UNKNOWN AND BE A LEADER. CHATGPT IS REALLY WHAT TURNED US INTO IT AS PEOPLE. COMPANIES AT ALL OF THAT MOVE AHEAD BECAUSE OF KNOWLEDGE, THEY MOVE AHEAD BECAUSE OF MOTIVATION AND EMOTIONS.
WE SHOULD DO THIS, WE SHOULD DO THAT, THIS WILL FIT IN WITH HER LIFE AND OUR COMPETITORS -- WITH OUR LIFE AND OUR COMPETITORS. AI COMES FROM STUFF THAT IS ALREADY PUBLISHED. CREATION IS THE WAY FORWARD. THEY DON'T CREATE A NEW STUFF, THEY APPLY IT, SPEAK IT, USE IT VERY WELL, IN A WAY THAT MAKES SENSE AS A HUMAN TO MOVE FORWARD. WHEN IS AN AI GOING TO SIT DOWN AND SAY WHAT SHOULD I CREATE NEXT THAT MAKES SENSE FOR THE WORLD OF PEOPLE? IT WILL ALWAYS BE IN THE END FOR PEOPLE. PEOPLE LIKE TO SAY THAT AI WILL
BE HEAD OF US. ED: YOU ALMOST -- CAROLINE: HE ALMOST ADMITTED IT CANNOT BE PUT BACK IN ITS BOX. THE SIGNING OF THE LETTER HAS NOT DONE ANYTHING TO SLOW THE DIRECTION OF TECHNOLOGY. WOULD YOU LIKE TO SEE REGULATION AND IS ITSELF REGULATION OR GOVERNMENT REGULATION? STEVE: THE STUDIO OF OPENING -- THE CTO OF OPEN AI AND JEFFREY WHO WON THE NOBEL PRIZE SAID THERE SHOULD BE REGULATION AND WE SHOULD BE CAUTIOUS ABOUT WHAT IS COMING BECAUSE YOU DON'T KNOW HOW TO HANDLE SUCH BIG CHANGE. I AM WORRIED MORE THAN ANYTHING
ELSE ABOUT SPAM AND TAKING ADVANTAGE OF PEOPLE, THE PEOPLE USE OF IT -- THE EVIL USE OF IT. I HOPE WE BROUGHT ATTENTION TO THE FACT THAT AI HAS SOME ISSUES. I WOULD LIKE TO KNOW EVERYTHING I READ, DID IT COME FROM AI? THAT COULD BE SKEPTICAL.
I LIKE SURENESS, CAN I REALLY BELIEVE THIS? I AM ALREADY OLD ENOUGH TO BE VERY SKEPTICAL. ED: WHAT DO YOU MAKE OF THE APPLE OF 2020 THREE, THE COMPANY THAT YOU WANTS FOUNDED 30 YEARS AGO -- HE ONCE -- YOU WANTS FOUNDED THREE YEARS AGO? WHAT DO YOU MAKE OF THE BUSINESS? STEVE: I DID ASSESS BUSINESS HEALTH. IT IS WELL SUPPORTED AND MAINTAINED, BUT I ALSO LOOK AT PEOPLE WHO RUN A COMPANY. TIM HAS BEEN A LONG TIME
FAVORITE OF MINE BECAUSE OF HIS CARE OF DIVERSITY AMONG CLIENTS AND EMPLOYEES AND PARTNERS. ED: APPLE COFOUNDER, STEVE WOZNIAK, THANK YOU. COMING UP, HOLLYWOOD WRITERS ARE FORMING A PICKET LINE AFTER WEEKS OF NEGOTIATIONS WITH STUDIOS FELL THROUGH. WE WILL HAVE MORE ON WHAT THE WRITERS ARE DEMANDING AND THE ROLE GENERATIVE AI PLAYS IN HOLLYWOOD. THIS IS BLOOMBERG. ♪ CAROLINE: IN TODAY'S GOING VIRAL, DEJA VU FOR US WHO CONSUMED TELEVISION IN DELAY TO THOUSANDS.
MEMBERS OF THE WRITERS GUILD OF AMERICA ARE ON TRACK AGAIN, THE FIRST IN 15 YEARS. -- IS JOINING US FOR THE IMPACT NOT ONLY ON THE MEDIA COMPANIES BUT IMPACTED THE ECONOMY OF VALET. REMIND US WHY THEY ARE STRIKING AND WHY IT IS ABOUT STREAMING. >> IT COMES DOWN TO THE SEISMIC CHANGES IN HOW PEOPLE HAVE BEEN CONSUMING TELEVISION AND HOW TELEVISION IS BEING MADE AS WE SWITCH FROM THE BROADCAST ROAD TO THE STREAMING WORLD.
DURING THAT TRANSITION, AND A LOT OF THE WAYS IN WHICH WRITERS WERE COMPENSATED CHANGED. THE WRITERS ARE ESSENTIALLY SAYING ALL OF THE VALUE IN THE TRADITIONAL TV MARKET HAS BEEN STRIPPED OUT AND WE ARE NOT BEING FAIRLY COMPENSATED. A LOT OF THAT COMES DOWN TO THINGS LIKE HOW LONG SEASONS ARE. IN THE STREAMING WORLD,
TYPICALLY STREAMERS WILL MAKE EIGHT TO 10 EPISODES AS OPPOSED TO 20 AND 80 BROADCAST WORLD. -- AS OPPOSED TO 20 AND 80 BROADCAST WORLD. -- 20 IN THE BROADCAST WORLD. ALL OF THE RESIDUALS, IF YOU HAD A SUCCESSFUL SHOW IN THE BROADCAST WORLD, YOU CAN LIVE ON RESIDUALS THE REST OF YOUR LIFE. STREAMING, ALL OF THAT HAS BEEN STRIPPED OUT. ED: ARTIFICIAL INTELLIGENCE WAS
LISTED AMONG THE COMMANDS -- AMONG THE CONCERNS. THEY'RE NOT AGAINST USING CHATGPT. , THERE ARE JUST PARAMETERS THEY WANT TO SET. FELIX: THEY DON'T WANT TO RESIDUALS GOING TO PEOPLE WHO CREATED GENERATIVE AI TO CREATE SCRIPTS. THEY WANT SOME CONTROL ABOUT HOW THAT TECHNOLOGY IS BEING EMPLOYED IN THE WRITERS ROOM. A LOT OF THAT COMES DOWN TO HOW MANY WRITERS ARE WORKING ON THESE SHOWS, HOW THE MONEY IS CARVED UP.
I THINK THAT IS ONE OF THE CONCERNS THAT IS FURTHER OUT IN THE FUTURE BUT ON EVERYBODY'S MINDS. RIGHT NOW A LOT OF IT IS MORE PROSAIC CONCERNS LIKE HOW MANY WRITERS ON A MINIMUM FOR A SHOW THAT IS IN PREDEVELOPMENT? WHAT IS THE NUMBER OF WRITERS ON A SHOW THAT IS IN DEVELOPMENT? THOSE ARE THE ISSUES THEY ARE FIGHTING BACK AND FORTH ON. ED: THANK YOU SO MUCH. COMING UP, WE RETURNED TO THE VOLATILITY IN THE BANKING SYSTEM AND SPEAK TO THE CEO OF SOPHIA, ANTHONY NOTO.
THIS IS BLOOMBERG. CAROLINE: WE ARE STILL ARE THINKING ABOUT THE BANKING TURMOIL. IT CONTINUES TODAY AS REGIONAL BANKS ARE TAKING A HIT. WE WANT TO CUT ABOUT THE ECOSYSTEM OF FINANCE AND SOME MICROMUSE WITH THE CEO OF ONLINE LENDER, SOFI, ANTHONY NOTO.
THE COMPANY IS PARTNERING WITH EXPEDIA. YOU ARE THINKING HOW TO SET YOURSELF APART FROM OTHER ONLINE LENDERS. FIRST AND FOREMOST, WHAT DID YOU MAKE OF THE U.S. AT THE MOMENT AND THE WORRY OVER REGIONAL LENDERS. ANTHONY: ON THE BACK OF SILICON VALLEY BANK AND -- CONSUMERS WANT TO GO TO A PLACE WHERE THEY CAN TRUST THE BRAND, TRUST THE COMPANY.
ONE OF THE THINGS WE HAVE SEEN IS THAT OUR MEMBERS TRUST US NOT JUST WITH CHECKING AND SAVINGS NEEDS, BUT NEEDS MORE BROADLY, WHETHER IT IS THE CREDIT CARD WITH A BROKERAGE ACCOUNT OR REFINANCING. WE JUST POSTED OUR EIGHTH CONSECUTIVE QUARTER OF REVENUE YESTERDAY WITH 46% YEAR-OVER-YEAR GROWTH. $460 MILLION OF REVENUE. THOSE QUARTERS OF RECORD PERFORMANCE REFLECTED THE TRUST AND RELIABILITY WE ARE DEALING FOR MEMBERS. WE HAVE ALSO INCREASED THE BENEFITS THEY HAVE. WE PROVIDE TWO-MINUTE DOLLARS OF FDIC -- $2 MILLION OF FTSE INSURANCE -- FDIC INSURANCE.
THAT IS WHAT HAS LED TO STRONG REPORTS ACROSS THE BOARD, AS WELL AS POSITIVE MARGINS. CAROLINE: THEY ARE WORRIED ABOUT YOUR FORWARD-LOOKING GUIDANCE ON GROWTH. IS THAT COMPETITION IN ANY WAY? YOU HAVE A BANKING LICENSE BUT A LOT OF ONLINE LENDERS DOING WELL WITH JUST BANKING PARTNERSHIPS. WHAT DO YOU MAKE OF THE SPACE YOU HAVE MADE FOR SOFI WHEN THE MARKET IS WORRIED? ANTHONY: WE RAISE OUR OUTLOOK.
WE INCREASED OUR REVENUE GUIDANCE FOR THE YEAR AND INCREASED OUR GUIDANCE FOR THE YEAR AND REINFORCED OUR VIEW THAT WE WILL BE OPERABLE BY THE FOURTH QUARTER. OUR BANK WHICH IS A SUBSET OF OUR OVERALL COMPANY IS ALREADY CAP -- GAP PROBABLE. MELENCHON RETURN ON EQUITY OF OVER 20%. THE PERFORMANCE WE HAD IN Q1 WE PASSED THROUGH AND RAISED FOR THE FULL YEAR. WE HAVE A LOT OF LEVERAGE IN THE BUSINESS. OUR CRIMINAL MARGINS WHICH IS THE CHANGE IN REVENUE THAT DROPPED THE BOTTOM LINE WAS 40% PLUS FOR NET INCOME IN GAP BASIS. CAROLINE: BUT THEY ARE WHEREBY YOUR
AVATAR -- ABOUT YOUR AVATAR -- ANTHONY: IT IS NOW GREATER THAN OUR STOCK COMPENSATION AND WE ARE ON TRACK TO BE GAP PROFITABLE BY THE FOURTH QUARTER AND GENERATE STRONG RETURNS. ED: LET'S GO BACK TO THE TRAVEL NEWS. AS YOU TRYING TO WIN BUSINESS FROM AMERICAN EXPRESS AND THE CHASE CARD BUSINESS. ANTHONY: OUR VALUE PROPOSITION IS WE WANT TO BE THERE FOR EVERYONE IN THE MAJOR FINANCIAL DECISIONS AND ALL OF THE DECISIONS IN BETWEEN. WE WANT TO HELP PEOPLE GET
MONEY RIGHT BY HELPING THEM BORROW BETTER, SAVE BETTER, PROTECT AND SPEND BETTER. THIS IS OUR FIRST FORAY INTO HELPING PEOPLE SPEND BETTER OUTSIDE OF JUST FINANCIAL SERVICES. WE LAUNCHED SOFI TRAVEL WITH EXPEDIA TO GIVE OUR MEMBERS GREAT VALUE. GREAT SELECTION, GREAT EASE-OF-USE COME AT GREAT PRICES THAT ARE EVEN BETTER WHEN THEY PAY WITH SOFI AND THEY USE REWARD POINTS AND GENERATE REWARD POINTS WITH US. WE ARE PROVIDING WHAT THEY
COULD GET SOMEONE ELSE AT AN EVEN BETTER PRICE. WE WILL LOOK TO DO THIS IN OTHER CATEGORIES LIKE ENTERTAINMENT AND OTHER TYPES OF THINGS LIKE SPORTING EVENTS THAT ARE HIGH TICKET PURCHASES TO GIVE THEM A BETTER WAY TO BUY WITH HER FOR POINTS -- WITH REWARD POINTS AND BETTER INVENTORY. ED: BLOOMBERG IS TRACKING THE LITIGATION AGAINST THE BIDEN ADMINISTRATION'S PLAN TO THE STUDENT LOAN FORGIVENESS PROGRAM. I KNOW THAT HAS HAD AN IMPACT TO YOU. WHAT IS THE LATEST?
ANTHONY: WHAT IS HAPPENING IS IN THE COURTS. IT WILL GO THROUGH THE COURTS WITH DIFFERENT FILINGS AND DIFFERENT MOTIONS. WE THINK IT IS THE RIGHT THING TO DO FOR OUR COUNTRY AND SOMETHING THAT WOULD BENEFIT SOPHIA -- SOFI. I THINK IT IS THE RIGHT THING TO DO FOR THE STUDENT LOAN PROGRAM. COLLEGES ARE NOT GOING TO BE AFRAID. WE ARE SUPPORTIVE OF TARGETED
FORGIVENESS OF LOANS. PEOPLE GOING TO COLLEGE TODAY STILL HAVE TO PAY A SIGNIFICANT AMOUNT OF TUITION AND THEY WILL NEED FINANCING. SOFI CAN PROVIDE THAT BUT THERE ARE NUMBER OF COMPANIES THAT HAVE NOT BEEN ABLE TO WORK AND WITHSTAND WHAT HAS HAPPENED AND THEY HAVE DROPPED OUT IN HELPING PEOPLE REFINANCE THEIR COLLEGE. WE HAVE HAD EIGHT RECORD
QUARTERS OF REVENUE IN A ROW. THREE RECORD QUARTERS OF A BUDDHA -- WE WILL BE DOING EVEN BETTER IF YOU COULD PROVIDE OUR MEMBERS WITH THE WRITEUPS OF SERVICES TO PAY FOR THEIR COLLEGE EDUCATION OR REFINANCE IT. THE ADMINISTRATION HAS PUT THAT ON HOLD WITHOUT A NECESSARY AMOUNT OF SPENDING, ABOUT $5 BILLION A MONTH. THAT COULD BE USED ON PEOPLE WHO NEED IT. CAROLINE:
30 SECONDS, IS IT WORTH THE P.R. HIT? PEOPLE SAY YOU'RE JUST PROFITEERING. ANTHONY: DOING THE RIGHT THING IS ALWAYS THE WAY WE ARE GOING TO GO, EVEN THOUGH IT MAY BE VIEWED AND SCRUTINIZED, IT IS THE RIGHT THING WE NEED TO DO FOR OUR COMPANY AND FOR OUR COUNTRY. ED: ANTHONY NOTO, THANK YOU SO MUCH FOR YOUR TIME. THAT DOESN'T IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." CAROLINE: YOU HAVE SO MUCH TO CAP -- TO
CATCH UP ON. YOU CAN DO THAT, CHECK OUT OUR PODCAST. IF YOU WANT TO CHECK BACK IN TO ANTHONY NOTO OR SEE WHAT IS COMING FROM CODE.ORG, GO DO IT.
ON APPLE PODCASTS, IHEART MEDIA, OR WHEREVER YOU CONSUME YOUR CONTENT. FROM NEW YORK AND SAN FRANCISCO ON A BUSY DAY, THIS IS BLOOMBERG.
2023-05-03 16:04
