'Bloomberg Technology' Full Show (06/02/2023)
ANNOUNCER: FROM THE HEART OF WHERE MONEY AND INFORMATION COLLIDE, THIS IS "BLOOMBERG TECHNOLOGY" WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I'M CAROLINE HYDE AT WORLD HEADQUARTERS IN NEW YORK. ED: AND I M AM ED LUDLOW. CAROLINE: WE WILL BREAK DOWN WHAT HIRING LOOKS LIKE IN THE TECH SECTOR AND SPEAK TO THE DIRECTOR OF HUMAN RESOURCES AT ETHENA. ED: WE LOOK INSIDE THE C-SUITE WHEN IT COMES TO THE HEALTH OF THE TECH INDUSTRY AND SPEAK TO THE CEO'S OF CROWDSTRIKE AND ZSCALER. CAROLINE:
AMAZON AND TALKS OF A MOBILE PHONE SERVICE TO PRIME CUSTOMERS. WHAT THAT MEANS FOR THE COMPETITION. THAT AND MUCH MORE, COMING UP. LET'S LOOK AT HOW TECH IS IN CHARGE. WE ROUND OUT THIS WEEK FROM THE MARKET'S PERSPECTIVE ON THE HIGHER SIDE. WE DELVE INTO THE FACT WE HAVE BEEN LED HIGHER BY A SMALL NUMBER OF BIG TECH HEAVYWEIGHTS THAT HAVE DRIVEN THIS RALLY THIS YEAR. IT IS ALL ABOUT AI. WE SAW THAT BLOWOUT NUMBER FROM THE JOBS DATA.
339,000 JOBS ADDED, BUT UNEMPLOYMENT TICKS HIGHER. DO WE SEE THE FEDERAL RESERVE RAISING IN JUNE OR JULY? 13 BASIS POINTS AND THE TWO-YEAR IS DIGESTING HOW MUCH THE FED IS GOING TO FIGHT A HEALTHY LABOR MARKET. CRYPTO UP 0.9%. THE RISK ASSET DEPLOYMENT IS HAPPENING ACROSS EQUITIES AND BITCOIN LANGUISHING AT $27,000. LET'S LOOK AT THE RELATIVE STRENGTH INDEX. I'M LOOKING AT BIG TECH AND AI DELIVERING.
THIS WAS THE WEEK WE SAW ANOTHER $1 TRILLION COMPANY ADDED TO THE CLUB. NVIDIA SITTING AT 170. AI IS THE DRIVING FORCE. WE SEE A HEALTHY PERFORMANCE IN META. THAT IS ALL ABOUT VR. THE OUTPERFORMANCE OF CERTAIN TECH STOCKS IS FRONT AND CENTER.
ED: THERE IS A LOT GOING ON. APPLE IS UP AT $181 A SHARE. IF WE GET TO $182, WE ARE HEADING TOWARD A RECORD FOR APPLE, WHICH IS ASTONISHING WHEN YOU CONSIDER WE ARE PRETTY MUCH IN OVERBOARD TERRITORY.
WE WILL TALK TO MARK GURMAN LATER IN THE PROGRAM. INTERESTING IF THAT MOMENTUM CONTINUES. BROADCOM UP W 1.8%. OUTSHINING SLOW DOWN IN THE BROADER MARKETS. UP FOR 4% BECAUSE OF STRENGTH IN THE BUSINESS SALES OF PC'S. THAT BIG STORY IN THE MARKET THIS FRIDAY IS AMAZON.
ACCORDING TO SOURCES, BASICALLY PROVIDE WIRELESS SERVICES TO PRIME MEMBERS. THIS IS THE IMPACT. DISH OF 23%. THE BIGGEST JUMP SINCE 2011. TO THE DOWNSIDE, T-MOBILE, DOWN 8%. VERIZON DOWN 4.5%. WE GET INTO THIS LATER WITH MATT DAY. IS THERE A STORY ABOUT UNDERCUTTING, UNDERPRICING THAT LEGACY INDUSTRY? WHEN I LOOK AT THE MARKET, YES, WE HAD THE JOBS HOT, HOT, HOT. BUT THERE IS NO ONE CATALYST.
T-MOBILE, FOR EXAMPLE, BIG DRAG ON THE NASDAQ 100. WHAT IS IT THE MARKET IS TRADING WHEN IT COMES TO THE TECHNOLOGY SECTOR? AI. ANOTHER PART OF THE STORY. CAROLINE: BOY, HAS IT BEEN THE STORY FOR THE INTEGRITY OF MAY. BUT ALSO THE ENTIRE YEAR. I DON'T KNOW IF YOU SAW THE STORY COMING OUT OF BANK OF AMERICA, ONCE AGAIN SHOWING WHERE THE FUND FLOWS ARE GOING.
MICHAEL HAS BEEN PUTTING OUT NOTE AFTER NOTE, CALLING WHAT HE SAYS AN AI BABY BUBBLE. DID YOU SEE THE STATUS IN THE LAST WEEK OF MAY? THE MONEY FLOWING INTO TECHNOLOGY A RECORD AMOUNT, $8.5 BILLION. EXTRAORDINARY. AND WE KNOW WHY. WE KNOW IT IS THE AI BUBBLE. ED: THERE IS THIS FOMO ELEMENT. REMEMBER WHEN WE TALKED TO
JOANNE FEENEY. ALL OF THE GAINS OF THE S&P 500 ARE SEVEN NAMES. NVIDIA IS A BIG PART OF THAT STORY. AND THEN WE THINK ABOUT THE FED. HOT, HOT, HOT JOBS DATA. SWAPS PRICING FOR A HIKE IN
JULY. HIGHER RATES IMPACT PRESENT VALUE OF CASH FLOWS. WE HAVE TO PAY ATTENTION TO THE FUNDAMENTALS AS WELL. CAROLINE: 24 HOURS AGO YOU WERE TALKING -- I KNOW THIS IS A WEIRD WEEK -- JOANNE WAS 48 HOURS BUT I HAVE NO IDEA WHAT DAY IT IS. WE ARE TALKING CHIPS, AI, HOW
ABOUT PAYROLL? TODAY WE ARE SHOWING CONTINUED STRENGTH IN THE LABOR MARKET. WE ARE TRYING TO DISSECT WHERE THAT STRENGTH IS AND IF IT IS IN THE TECH SECTOR. LET'S BRING IN SOMEONE WHO KNOWS WELL. ROXANNE PETRAEUS, CEO OF THE KEY COMPANY THAT IS LOOKING AT THE RESOURCE PLATFORM THINKING ABOUT THE TECHNOLOGY STARTUPS LELIKE ZOOM. ETHENA IS SUPPLYING TO THESE COMPANIES. WHAT ARE YOU SEEING IN TERMS OF NERVOUSNESS? YOU ARE ALL ABOUT COMPLIANCE, CULTURE. WHAT DOES THE TECH SECTOR FEEL
LIKE? ROXANNE: I THINK THERE IS TENSION BECAUSE THERE HAVE BEEN HUGE CHALLENGES, MASSIVE LAYOFFS THAT HAPPENED THE LAST 12 TO 18 MONTHS. ON THE FLIPSIDE, THERE IS DESIRE TO KEEP KEY TALENT IN COMPANIES. WHETHER THEY ARE NAVIGATING RETURN TO OFFICE, INTERGENERATIONAL IN THE WORKFORCE. YOU ARE SEEING THE RAMIFICATIONS OF A TIGHTER ECONOMY IN TECH. BUT ALSO, ABSOLUTELY WANTING TO HOLD ON TO YOUR TALENT BECAUSE THAT IS WHAT MAKES GREAT TECH COMPANIES. CAROLINE: TRY AND CARVE IT OUT FOR US.
339,000 FROM A U.S. MACRO PERSPECTIVE LOOKS VERY HOT. BUT THE ON THE PLANET RATE IS RISING. WE ARE SEEING A FIGHT FOR
CERTAIN TYPES OF TALENT. JP MORGAN IS HIRING 40% WITH AI TALENT. ARE YOU TALKING ABOUT THIS WORRY THAT THOSE THEY HAVE DECIDED TO KEEP ARE HAVING A HARD TIME BEING CAPPED? ROXANNE: THERE COULD BE THIS FEELING YOU CONDUCT A LAYOFF AND IT IS DONE. WHAT I AM SEEING THE THOUGHTFUL COMPANIES WE ARE PROUD TO SERVE IS THEY MAY CONDUCT THE LAYOFF, BUT THAT IS DAY ONE. WHAT YOU NEED TO DO IS INVEST IN MAKING SURE THOSE STAYING ARE HAPPY, THAT THEY ARE CONNECTED TO THE COMPANY, THAT THEY UNDERSTAND NEW POLICIES, AND WHATEVER NEW THINGS ARE HAPPENING IN THAT COMPANY. A COMPANY HAS DONE A LAYOFF BUT
THEY ARE ABSOLUTELY PLANNING FOR GROWTH. THEY FUNDAMENTALLY BELIEVE IN THEIR CORE MISSION. TO DO THAT, THEY HAVE TO KEEP THE BEST TALENT AND AI IS DRIVING A LOT OF THIS. BUT YOU NEED STRONG MANAGERS TO STEP UP. I THINK THE IDEA LAYOFFS WERE CONDUCTED AND DONE WERE NOT BEING SEEN. WE ARE SEEING COMPANIES INVEST IN, WHAT IS THE DAY AFTER? CAROLINE: ED, HOW MUCH YOU ARE HAVING TO PAY PEOPLE. THAT IS THE OTHER INTERESTING
PART. MAYBE YOU SAW THE WAGE INCREASE DIAL BACK A LITTLE BIT. ED: YEAH. THAT THIRD DATA POINT. SOMETHING I TWEETED THIS WEEK WAS THE STORY AROUND ZIPPER ZIPRECRUITER CUTTING 20% OF ITS STAFF. WHAT DOES THAT TELL YOU WHEN A COMPANY LIKE ZIPRECRUITER, THAT IS DOING RECRUITMENT, IS CUTTING 20% OF ITS OWN STAFF? ROXANNE: I THINK REGARDLESS OF WHAT COMPANY IT IS THE LAYOFFS HAVE TENDED TO BE BETWEEN 10% AND 20%. ANY COMPANY HEAVILY IN THE
TALENT SPACE WAS HIT HEAVY AND HARD. I DO NOT THINK IT FUNDAMENTALLY CHANGES. IF YOU PULL BACK FROM THE MONTH-TO-MONTH AND LOOK YEAR-TO-YEAR, EVERYBODY BELIEVES TECH IS THE FUTURE. THERE IS STRONG OPTIMISM DRIVEN BY AI, BUT ACROSS THE BOARD, AS COMPANIES GO HYBRID, KEY TOOLS ARE GOING TO BE NEEDED IN ORDER TO CONNECT MANAGEMENT WITH THEIR EMPLOYEES.
NONE OF THESE SECULAR TRENDS ARE ROLLING BACK. I THINK IT IS MORE IS THERE MAY HAVE BEEN OVER HIRING REGARDLESS OF WHAT THE COMPANY IS. THE LAST COUPLE YEARS WERE QUITE WILD AND I THINK IT IS MORE OF A RESTRUCTURE, NOT A FUNDAMENTAL DISAGREEMENT THAT THE FUTURE OF THESE TECH COMPANIES REMAINS STRONG. ED: WHEN DO WE RETURN TO HIRING? ROXANNE: I MEAN, I THINK WE ARE ABSOLUTELY THERE. MANY OF THE COMPANIES WE WORK WITH -- EVEN THOSE THAT HAVE CONDUCTED 10%, 20% LAYOFFS -- MAY STILL BE HIRING FOR KEY ROLES. I'M NOT SURE IF THEY HAD -- IF I HAD A CRYSTAL BALL, EVERYTHING WOULD BE EASIER.
I WOULD NOT SAY THE PEOPLE TEAMS THAT WE WORK CLOSELY WITH HAVE STOPPED HIRING. THEY ARE BACKFILLING CERTAIN ROLES AND THINKING ABOUT WHERE THEY NEED TO INVEST. IT IS THIS COMPLICATED DANCE OF CONDUCTING A LAYOFF, BUT ON THE OTHER HAND, INVESTING IN THE TALENT THAT REMAINS AND THINKING ABOUT THE TALENT COMING IN. CAROLINE: ARE THE PEOPLE TEAMS BEING
REPLACED BY AI? ROXANNE: I THINK THEY ARE BEING ENHANCED BY AI. THAT IS BOTH THE HOPE AND WHAT WE ARE SEEING IN GENERAL. THERE IS SO MUCH OF THE PEOPLE FUNCTION THAT REALLY IS THIS INTERPERSONAL CONDUCTING SENSITIVE CONVERSATIONS. THERE IS UNDERSTANDING EVEN AMONG THOSE OPTIMISTIC ABOUT AI YOU'RE GOING TO NEED THESE CONVERSATIONS AND HAVE THIS INTERPERSONAL DYNAMIC.
BUT THE ABSOLUTE HOPE IS REPLACE A LOT OF THAT PAPERWORK WITH AI SO YOU CAN FOCUS ON THE PEOPLE WORK AND NOT JUST THAT ROUTINE DAY TO DAY STUFF. THAT IS WHAT ETHENA IS AIMING TO DO. ED: ROXANNE PETRAEUS, THANK YOU. CAROLINE: THANK YOU. ED: CROWDSTRIKE REPORTS ITS FIRST
QUARTER RESULTS. WE BREAK IT DOWN WITH CEO GEORGE KURTZ. WE ARE LOOKING AT SHARES OF BROADCOM. WHICH STORY DO YOU BUY INTO WHEN IT COMES TO BROADCOM? THE NARRATIVE THAT AI SALES WILL DOUBLE OVER THE COURSE OF THIS FISCAL YEAR? OR THAT EVERY OTHER BUSINESS AREA IS SLOWING DOWN? PARTICULARLY WHEN IT COMES TO THE MEMORY SIDE.
I THINK THAT IS REALLY IMPORTANT. RIGHT NOW, INVESTORS ARE LIKING IT. UP 1.9%. THIS IS BLOOMBERG. ED: CROWDSTRIKE REPORTING ITS FIRST QUARTER RESULTS EARLY THIS WEEK, BOOSTING THE REVENUE GUIDANCE WITH THE FOUR-YEAR. IT IS WORKING WITH AWS TO
DEVELOP REGENERATIVE AI APPLICATIONS. LET'S BRING IN CEO GEORGE KURTZ. THERE WAS CONCERN ABOUT A DECELERATION IN BILLING. THURSDAY DOWN 11%, BIGGEST SINCE NOVEMBER. OTHERS ON THE STREET SAYING NOTHING TO DISLIKE IN THIS EARNINGS REPORT. WHAT WAS THE MOST IMPORTANT POINT FOR YOU? GEORGE: I THINK WHEN YOU LOOK AT THE EARNINGS REPORT, YOU HAVE GOT TO START WITH GUIDED METRICS. WE ACTUALLY HAD RECORD REVENUE,
RECORD GROSS PROFIT, RECORD OPERATING PROFIT, AND FOR THE FIRST TIME, GAP PROFITABILITY. WHEN YOU PUT ALL THAT TOGETHER IT WAS EXTREMELY STRONG. THE WAY WE RUN OUR BUSINESS IS NOT BY BILLINGS. IT IS A TIMING ISSUE. YOU HAVE TO LOOK AT THE NEW ARR. IF YOU LOOK AT THE CURRENT ENVIRONMENT WITH THE CURRENT CONDITIONS IN MACRO HEADWINDS, WE THINK IT WAS AN ABSOLUTELY STRONG QUARTER.
I THINK IT IS A TESTAMENT TO THE PRODUCT AND THE CUSTOMER BASE WE HAVE. CAROLINE: LET'S TALK ABOUT THE NEW ANNUAL RECURRING REVENUE. FIRST YEAR OF DECLINE AMID A CHALLENGING MACROENVIRONMENT. IS THAT MACROENVIRONMENT IMPROVING IN ANY WAY THE PERSPECTIVE YOU ARE SEEING? IS IT GETTING EASIER OR NO? GEORGE: IT IS NOT GETTING EASIER. WHEN WE LOOKED AT IT, IT REMAINED CONSISTENTLY CHALLENGING.
IT WAS SOMETHING WE TALKED ABOUT, THE HEADWINDS THE LAST COUPLE OF QUARTERS. WE DID NOT SEE IT GET BETTER BUT WE SAW IT REMAINED THE SAME. WE WILL SEE WHAT HAPPENS FOR THE UPCOMING QUARTERS. OBVIOUSLY, EVERYONE IS HOPING FOR RELIEF WITH INTEREST RATES AND THE DEBT CEILING ISSUES. BUT THAT REMAINS TO BE SEEN. CAROLINE: THE CLIENTS YOU ARE SIGNING. WHAT ARE THEY MOST FOCUSED ON?
I AM PRETTY SURE EVERYBODY IS TALKING ABOUT GENERATIVE AI, THE RISKS INVOLVED IN CLOUD. WHAT IS THE NUMBER ONE PRIORITY FOR THE CLIENTS YOU ARE CURRENTLY SERVING? GEORGE: IT STARTS WITH STOPPING BREACHES, WHICH IS WHY I BUILT THE COMPANY. I BELIEVE WE ARE THE BEST AT IT AND I THINK OUR CUSTOMERS WOULD SAY THAT. BUT WHEN YOU PUT THAT ASIDE THE NUMBER ONE DRIVER IS CONSOLIDATION. EVERYONE IS LOOKING TO
CONSOLIDATE. WITH A PLATFORM THAT HAS 23 MODULES WE CAN CREATE A PAYBACK WITHIN THE FIRST YEAR. WE ARE TAKING SHARE FROM OTHER VENDORS, CONSOLIDATING IT ON OUR PLATFORM. ED:
WHEN WE SPOKE AT RSA IN APRIL, AI WAS THE BUZZ WORD. BOTH AS A TOOL BUT ALSO RECOGNIZING THREAT ACTORS HAVE ACCESS TO THE SAME TECHNOLOGY. NOW YOU HAVE GOT A PARTNERSHIP WITH AWS. HOW DID THAT COME APART? GEORGE: THEY HAVE BEEN A PARTNER MANY YEARS AND ALSO A CUSTOMER. WHEN WE LOOKED AT WHAT WE WERE DOING, WHAT THEY WERE DOING WITH BEDROCK, WE THOUGHT IT WAS A GREAT PARTNERSHIP.
WE PROTECT A LOT OF THEIR CUSTOMERS AND CLOUDS. WHEN WE THINK ABOUT AI, YOU TALK ABOUT RSA. IT WAS ALL ABOUT AI. CROWDSTRIKE HAS BEEN DOING THIS
SINCE 2012, WHEN I STARTED THE COMPANY. THAT WAS THE FOUNDATION OF WHY I STARTED IT. AI HAS TRANSFORMED OVER TIME. GENERATIVE AI, WHICH WE ARE EXCITED TO TALK ABOUT, BUT AWS HAS BEEN A GREAT PARTNER. WE LOOK FORWARD TO ADVANCING THAT RELATIONSHIP. ED:
WHAT I INCREASINGLY HEAR IN THE C-SUITE CONVERSATIONS IN SILICON VALLEY'S TECHNICAL EXPERTISE IS THE DRIVER WITHIN A COMPANY. WHO WITHIN YOUR ORGANIZATION WAS PUSHING YOU TO SAY, WHAT CAN WE DO WITH AMAZON? HOW CAN WE BUILD SOMETHING WITHIN BEDROCK? I WANT TO KNOW HOW DAY TO DAY A COMPANY LIKE CROWDSTRIKE BRINGS LLM'S INTO THE OFFERING. GEORGE: GREAT QUESTION. THERE IS NOT A LOT OF PUSHING. IT IS BUILT INTO THE DNA OF THE
COMPANY. THAT IS THE WAY WE PROTECT AGAINST ADVERSARIES, USING AI. WHEN WE THINK ABOUT GENERATIVE AI, WE STARTED THIS PROJECT AS LLM'S WERE COMING TO THE MARKET. WE HAVE A GROUP -- MANY GROUPS -- BUT A PARTICULAR ONE IN EUROPE. THAT WAS WHEN WE LAUNCHED
CHARLOTTE AI. WE BASICALLY SAID, HOW DO WE DO THIS AT SCALE? HOW DO WE PARTNER WITH SOMEONE LIKE AWS? HOW DO WE COME UP WITH THE BEST OUTCOMES FOR CUSTOMERS? ONE OF THE THINGS TO KEEP IN MIND IS YOU HAVE TO HAVE THE DATA SET TO COME OUT WITH THE BEST OUTCOMES. CAROLINE: ALWAYS GREAT TO CATCH UP WITH YOU. THANKS. I AM SURE YOU'RE HITTING THE ROAD SOON. BUT TALKING EUROPE AND THE FOCUS ON AI, GEORGE KURTZ, CROWDSTRIKE CEO. WE HAVE PLENTY MORE TO COME WHEN IT COMES TO CYBERSECURITY.
ANOTHER KEY LEADER, ZSCALER BEATING ANALYST ESTIMATES. MORE WITH THE CEO, NEXT. WE GOT TO KEEP AN EYE ON OTHER EARNINGS. DELL IS UP 0.3%. WHY? BUSINESSES DID NOT FALL AS SHARPLY IN TERMS OF THE PC PURCHASES AS ANTICIPATED. THE CONSUMER IS A STRUGGLE BUT MANAGING TO DELIVER WHAT WAS, OVERALL, CONCERNS OVER THE OUTLOOK. THIS IS BLOOMBERG.
CAROLINE: LET'S TALK ABOUT ZSCALER. IT BEAT EXPECTATIONS, EVEN RAISING THE FORECAST FOR ADJUSTED EARNINGS. SHARES HAD BEEN PERFORMING WELL TODAY. UP 7.5%. THE CEO IS WITH US. YOU PRE-RELEASED THE SOLID NUMBERS.
WHAT ARE YOU FEELING IN TERMS OF MACROECONOMIC HEADWINDS? WHAT ARE YOU FEELING AND HEARING FROM CLIENTS? JAY: MACRO CONDITIONS ARE TIGHT. THERE IS A LOT OF SCRUTINY. BUT CIO'S ARE STILL LOOKING FOR MAKING SURE THEY ARE DOING WHAT NEEDS TO BE DONE FOR CYBERSECURITY. BUT THEY WANT TO DO IT BY HAVING GOOD COST SAVINGS, BY HAVING GOOD ROI. SINCE WE DELIVER GREAT
CYBERSECURITY AND CAN ELIMINATE POINT PRODUCTS, ROI IS OFTEN 200% TO 300%. THAT IS GIVING STRENGTH TO OUR BUSINESS. ED: THIS IS A GOOD OPPORTUNITY FOR US TO WORK OUT WHAT IS GOING ON INSIDE CYBERSECURITY. WE HAD GEORGE KURTZ ON, CROWDSTRIKE.
HIS STOCK FALLS 11% BECAUSE GROWTH IS DECELERATING. YOURS IS DOING THE OPPOSITE. YOU HAVE A LOT OF ENTERPRISE CUSTOMERS. WHY IS IT YOU ARE BENEFITING FROM A SPEND ON CYBER? JAY: MARKETS DO WHAT THEY DO. ED: THAT IS ONE WAY OF PUTTING IT. [LAUGHTER] JAY:
I FOCUS LESS ON THE STOCK PRICE. I FOCUS ON BUILDING GREAT SOLUTIONS AND TAKING CARE OF CUSTOMERS. BUT IT IS HARD TO SAY WHAT IS HELPING US. TWO THINGS. THE MANY ASPECTS OF CYBERSECURITY. THE ASPECT WE DEAL WITH IS IMPLEMENTING ARCHITECTURE, WHICH IS FUNDAMENTAL TO STOP RANSOMWARE AND OTHER SOPHISTICATED ACTORS. TWO, YOU MAY BE DOING GREAT
CYBERSECURITY. IF YOUR BUSINESS CASE FOR ROI AND COST SAVINGS IS NOT STRONG, YOUR DEAL GETS PUT ON HOLD. ED: WE ARE GOING TO GIVE CAROLINE THE OPPORTUNITY TO TALK ABOUT AI. JAY: OK. ED: BUT RANSOMWARE INTERESTS ME. WHERE ARE THE THREATS COMING FROM? IT HAS NOT BEEN LONG SINCE RSA AND RANSOMWARE WAS A BIG CONVERSATION. JAY:
WHERE DOES RANSOMWARE COME FROM? ED: YEAH. GEOGRAPHICALLY, AT THE STATE LEVEL, WHAT ARE YOU SEEING? JAY: THERE IS A LOT OF STATE-LEVEL STUFF GOING ON. CHINA AND RUSSIA ARE GENERALLY IN THE TOP TWO LIST. CHINA DRIVEN MORE BY IP AND RUSSIA, THEY DO A WHOLE LOT OF THINGS. MANY TIMES IT IS DRIVEN BY MAKING MONEY, ALTHOUGH THERE IS A RANGE OF GROUPS THAT GO AFTER RANSOMWARE. CAROLINE: CAN I ASK YOU YOUR THOUGHT AS AN EXPERT IN THE FIELD ABOUT THE CREDIBILITY, THE VALIDITY? WHEN RUSSIA AND THE RUSSIAN GOVERNMENT ACCUSES THE U.S. OF HACKING CERTAIN IPHONES IN
RUSSIA, IS THAT SOMETHING YOU THINK BEARS WEIGHT? ONE COULD ASSUME THAT COULD HAPPEN EVEN IF IT DID NOT? JAY: ALL COUNTRIES DO IT TO A CERTAIN DEGREE. IT IS HARD TO SAY FOR SURE WHICH OF THESE REPORTS ARE TRUE. BUT I CAN TELL YOU OUR SECURITY RESEARCH TEAM PICKS UP A LOT ON RECONNAISSANCE. AT THE END OF THE DAY THERE IS COMMUNICATION GOING ON BEFORE ANY MAJOR BREACHES HAPPEN. RECONNAISSANCE STARTS. WE AT ZSCALER ARE IN THE MIDDLE OF ALL COMMUNICATIONS THAT HAPPENED BETWEEN USERS AND APPLICATIONS ALIKE.
AND WE OFTEN SEE A LOT OF THAT. THAT IS HOW WE ARE ABLE TO DETECT SOME OF THESE EARLY WARNINGS OF PHISHING ATTACKS AND RANSOMWARE. WITH SUCH A LARGE VOLUME OF DATA YOU CAN PICK UP STUFF. THE EXAMPLE I WILL GIVE YOU IS BEFORE 9/11 THE FBI HAD A LOT OF INFORMATION. IF THEY COULD REALLY CORRELATE, THERE WERE LOTS OF TELLTALE SIGNS. SINCE WE HAVE SUCH A MASSIVE CLOUD, WE HAVE A LOT OF THOSE TELLTALE SIGNS. NOW GENERATIVE AI IS HELPING US
TO FIGURE THOSE THINGS OUT AT SCALE AND HELP CUSTOMERS. ED: GENERATIVE AI, ALWAYS THE KEYWORD. JAY CHAUDHRY, THANK YOU FOR YOUR TIME. COMING UP, AMAZON SHOPPING AROUND FOR A PARTNER IN ORDER TO ADD WIRELESS SERVICES TO ITS LIST OF PERKS FOR PRIME.
WE HAVE MORE ON THAT. WE ARE WATCHING SHARES OF META, FORMERLY KNOWN AS FACEBOOK. ASKING EMPLOYEES ASSIGNED TO THE OFFICE TO COME IN THREE TIMES A WEEK BEGINNING IN SEPTEMBER, ACCORDING TO SOURCES. TRYING TO CLAMP DOWN AND REMOTE WORK. HOW OFTEN ARE WE HEARING THIS?
THREE DAYS A WEEK. COME BACK TO THE OFFICE. INTERESTING. CAROLINE: IT DOES FEEL LIKE THREE IS THE MAGIC NUMBER. A LITTLE BIT HIGHER IF YOU ARE LOOKING ACROSS WALL STREET AND THOSE BIG FINANCIAL PLAYERS WANTING FOUR OR FIVE DAYS A WEEK.
BUT NOTABLE EVEN THOUGH THEY HAVE ALL THE VIRTUAL-REALITY WAYS OF INTERACTING ONLINE THEY STILL WANT PEOPLE TO COME IN AND INTERACT. CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." I'M CAROLINE HYDE. ED: AND I'M AT ED LUDLOW. THERE ARE SO MUCH GOING ON. AN EQUITY MARKET CHARGING TOWARDS A BULL MARKET. IN PART DRIVEN BY RELENTLESS OUTPERFORMANCE IN TECH. ALSO THINKING ABOUT THAT HOT, HOT, HOT JOBS NUMBER THAT CAME IN.
LOOKING AT SWAPS, WHEN WE THINK ABOUT THE FED, MAY BE A PAUSE OR SKIP IN JUNE. AND THEN A HIKE IN JULY SEEMS POSSIBLE. THROW INTO THAT THE OUTPERFORMANCE OF SINGLE NAMES. NAMES TO THE UPSIDE LIKE DISH. TO THE DOWNSIDE WHAT WE ARE SEEING OUR CARRIERS, T-MOBILE IN PARTICULAR, DOWN 7.7%. BLOOMBERG NEWS REPORTING, ACCORDING TO SOURCES, AMAZON IS IN TALKS WITH CARRIERS TO BUY WHOLESALE RATES AND START OFFERING PRIME CUSTOMERS SOME SORT OF WIRELESS OFFERING. LET'S CONTINUE THE CONVERSATION ON THAT EXCLUSIVE REPORTING WITH MATT DAY, WHO JOINS US NOW. WHAT ARE THE DETAILS OF WHAT
YOU REPORTED? WHAT IS IT THAT AMAZON IS LOOKING AT DOING? MATT: AMAZON IS TRYING TO ADD THE BIGGEST PERK TO PRIME IN MANY YEARS, MAYBE SINCE THEY LAUNCHED THE STREAMING SERVICE. WHAT WE KNOW IS THEY ARE HOPING TO ADD SOME SORT OF WIRELESS SERVICE. MAY BE FREE AND OFFER THAT IS A PRIME BUNDLE. CAROLINE: THIS IS ABOUT MAKING PRIME EVEN MORE ADDICTIVE.
IS IT BECAUSE THE GROWTH RATE IS SLOWING? WHAT YOU THINK THE REAL CAUSATION IS? MATT: I THINK IT IS A LITTLE BIT OF THAT. IT IS ALSO AMAZON IS TRYING TO CUT COSTS ACROSS THE BOARD AND EMPHASIZE THE VALUE OF CORE PRODUCTS. THAT IS ONLINE RETAIL BROADLY. IT IS NOT SURPRISING FOR THEM LOOKING TO MAKE A SPLASH. ED: I THINK THE CONSIDERATION -- YOU AND I TALK ABOUT THIS IN THE CONTEXT OF HEALTH CARE. WHEN AMAZON MOVES INTO A NEW
INDUSTRY, THAT INDUSTRY SHIVERS. WHAT IS THE LOGIC IN THIS NEGATIVE REACTION, FOR EXAMPLE, FROM T-MOBILE AND VERIZON? MATT: I THINK THE LOGIC IS IN THE U.S. THE MARKET IS WELL CARVED OUT BETWEEN THREE MAJOR PLAYERS, VERIZON, T-MOBILE, AND AT&T.
THE THOUGHT IS IF AMAZON COMES IN AND RENTS ONE OF THOSE NETWORKS, THAT MEANS LESS FOR THE REST OF THE TABLE. CAROLINE: WHAT IS INTERESTING IS ONE SPACE AMAZON HAS NOT REALLY MANAGED TO MAKE HEADWIND IS IN HARDWARE. IS THAT ULTIMATELY GOING TO GIVE UP THE FACT THAT YOU WILL STILL BE USING AN APPLE PHONE OR GOOGLE PIXEL BUT USING IT FOR AN AMAZON CARRYING SERVICE? MATT: THAT IS POSSIBLE. DESPITE AMAZON'S HIGH-PROFILE FAILURE TO CATCH FIRE WITH THEIR OWN FIRE PHONES -- EXCUSE THE PUN -- THERE ARE ALWAYS RUMORS THEY MIGHT BE KICKING AROUND THE IDEA OF BRINGING THAT BACK. IT WOULD BE A WEIRD LOOK TO SEE SOMEBODY USING A PIXEL WITH AMAZON WIRELESS. CAROLINE: LET'S TALK ABOUT HARDWARE. ALEXA. ALL THE DATA OF THAT HARDWARE.
AMAZING STORY, 30,000 AMAZON WORKERS HAD ACCESS TO THE ALEXA DATA. MATT: THAT'S RIGHT. BETWEEN 2018 AND 2019 THE FTC SAYS 30,000 PEOPLE AT AMAZON COULD PLAY VOICE RECORDINGS. IT SEEMS LIKE A LOT AND THEY ALLEGE HALF THE FOLKS DID NOT NEED ACCESS TO THAT. A WORRYING INDICATION ABOUT THE INTERNAL DATA CONTROLS ON THE MOST INTIMATE STUFF THEY HAD ABOUT US, WHICH IS VOICE RECORDINGS. ED: OUR THANKS TO MATT DAY FOR THAT REPORTING. PAPA INC. IS A TASK RABBIT FOR SENIORS
WHERE CONTRACTORS PROVIDE HOME ASSISTANCE SERVICES. THINK LIKE UBER OR LYFT BUT IN ELDERCARE. BUT RECENT FINDINGS FROM BLOOMBERG REVEAL A DARK AND TROUBLING EXPERIENCE FOR SOME OF ITS USERS. JOINING ME FOR MORE ON HER STORY FROM BLOOMBERG BUSINESSWEEK IS PRIYA.
YOU GAVE TROUBLING EXAMPLES OF INTERACTION BETWEEN CONTRACTORS THAT WERE EMPLOYED THROUGH THIS APP AND THE ELDERLY THEY WERE GIVING CARE TO. BUT IN THE FIRST INSTANCE I HAD NEVER HEARD OF PAPA BEFORE. THEY RAISED MONEY AT HIGH VALUATION. PRIYA: YOU MAY NOT HAVE HEARD OF PAPA BUT PLENTY ON MEDICARE ADVANTAGE AND MEDICAID HAVE HEARD OF PAPA. EMPLOYER PLANS ARE OFFERING THIS AS A SERVICE TO EMPLOYEES WHO ARE CAREGIVERS FOR ELDERLY PARENTS AND THIS COMPANY HAS BEEN VALUED AT $1.4 BILLION BY SOFTBANK AND TIGER GLOBAL. THEY HAVE RACKED OF CONTRACTS
WITH THE LARGEST INSURERS IN THE COUNTRY, LIKE CIGNA, HUMANA, AETNA. ED: YOU REPORTED IN THAT STORY SOME OF THE SCALE OF PAPA IN TERMS OF REVENUE, THE NUMBER OF HOURS OF CARE. SOME OF THOSE FACTS THE COMPANY DISPUTED. THEY DID NOT GIVE US UP-TO-DATE
OR OTHER FIGURES. PRIYA: THAT'S RIGHT. ED: EXPLAIN HOW PAPA WORKS AND WITH THE IDEA BEHIND IT WAS. PRIYA: IT BRINGS THE GIG ECONOMY TO ELDERCARE.
THE COMPANY HAS CREATED A NEW CATEGORY OF CARE BY TAKING OUT THE MORE NURSING RELATED THINGS THAT HOME HEALTH AIDES TAKE CARE OF. LET'S SAY YOU ARE AN ELDERLY PERSON AND YOU HAVE NO HELP AT HOME. YOU NEED HELP GOING TO THE GROCERY STORE, MAYBE DOING YOUR LAUNDRY, FOLDING CLOTHES.
YOU CAN CALL SUNDAY FROM PAPA AND THEY WILL MAYBE CHAT WITH YOU, HELP YOU FEEL LESS LONELY, IF THAT IS A CONCERN. YOU GET THOSE HOURS FOR FREE FROM YOUR HEALTH INSURANCE PLAN IN A LOT OF CASES. CAROLINE: CERTAINLY, IN OUR PARTICULAR AGE RANGE, I AM FORTUNATE TO THINK ABOUT THE CARE OF MY YOUNGER CHILDREN RATHER THAN MY PARENTS. BUT THAT FEAR IS ALWAYS WITHIN ME WHEN I LEAVE MY CHILD WITH SOMEONE WHO I HAVE NOT MET BEFORE BECAUSE I NEEDED EMERGENCY BACKUP CARE. THE STORY IS HEART WRENCHING. WHAT WAS IT, 1200 COMPLETE
REPORTS OVER THE LAST FOUR YEARS? DOZENS OF ALLEGATIONS, ONE INVOLVING RAPE. THERE IS SEXUAL HARASSMENT AND IT IS NOT JUST THE PO PAPA CARE WORKERS BUT THE ELDERLY. DOES THIS COME DOWN TO LACK OF TRAINING? PRIYA: THE COMPANY DISPUTED ANY CHARACTERIZATIONS THAT IT IS LAX ON SAFEGUARDS AND LAX ON SAFETY MEASURES. BUT THEIR BACKGROUND CHECKS HAVE HAD INCIDENTS FALL THROUGH THE CRACKS WHERE SOMEBODY HAD A PRIOR CONVICTION AND BEEN ABLE TO BECOME A CONTRACTOR AND VISIT AN ELDERLY PERSON. THEY SAY THEY DO BACKGROUND CHECKS BUT AT THE END OF THE DAY, THE TRAINING PROVIDED IS LITTLE. FOR HOME HEALTH AIDES MEDICARE
RULES REQUIRE 75 HOURS OF TRAINING. BUT BECAUSE PAPA STRIPS AWAY THE NURSING ASPECT THERE IS NO BATHING. YOU JUST PROVIDE HELP WITH HOUSEHOLD TASKS AND COMPANIONSHIP. THERE ARE NO TRAINING REQUIREMENTS.
THE COMPANY'S TRAINING IS A SHORT VIDEO THAT PALS WATCH AND THEN CAN GO TO HOMES. CAROLINE: YOU HIGHLIGHT THE PREVIOUS WORKERS THAT THOUGHT THERE WERE ISSUES WITH THE BUSINESS. ULTIMATELY, NURSING FOR THE ELDERLY HAS BEEN WOEFUL NO MATTER WHAT WAY. WE THINK BACK TO THE UNDERSTAFFING OF NURSING HOMES DURING THE PANDEMIC. HORRIFIC SOME OF THE THINGS THAT HAVE HAPPENED.
DO YOU THINK THIS IS SOMETHING THE COMPANY IS LOOKING TO TACKLE? IS THERE MONEY BEHIND THIS ENSURING IT TACKLES THESE PROBLEMS AND CAN SOLVE A REALLY BIG PROBLEM FOR MANY FAMILIES? PRIYA: THE COMPANY SAYS IT TAKES SAFETY VERY SERIOUSLY AND THAT SAFETY RELATED COMPLAINTS FROM THE ELDERLY MEMBERS THAT RELY ON PAPA AND ITS WORKERS ACCOUNT FOR LESS THAN 1%. BUT WE FOUND IN OUR REPORTING MORE THAN 1200 COMPLAINTS AND COURT RECORDS THAT THERE HAVE BEEN INSTANCES WHERE THOSE MEASURES HAVE FALLEN THROUGH THE CRACKS. INCIDENTS HAVE OCCURRED AND, IN SOME CASES, ON A REPEAT BASIS. HARASSMENT ON BOTH SIDES BECAUSE THEY SHARED DIRECT PHONE NUMBERS. WE FOUND INCIDENTS WHERE THERE WERE REPEAT OCCURRENCES AND SEEMING INCIDENTS THAT IF SOMEONE HAD NOTICED A PRIOR CONVICTION, IT MAY HAVE BEEN PREVENTABLE. CAROLINE: WE HAVE REQUESTED INTERVIEWS FROM THE CEO, AND TRUE PARKER, AND THE INVESTORS. THEY HAVE DECLINED TO COMMENT.
PRIYA, THANK YOU FOR BRINGING US WHAT IS AN EXTRAORDINARY STORY. PRIYA: THANK YOU FOR HAVING ME. CAROLINE: WE TURN TO THE DAILY SEGMENT. WE TALKED TO THE FOUNDING MANAGING PARTNER OF PEAR, NEXT. THIS IS BLOOMBERG. ♪ ED: EARLY DOORDASH BACKER PEAR HAS CLOSED A MILLION-DOLLAR FUND FOR EARLY-STAGE INVESTING. IT WILL CONTINUE PEAR'S STRATEGY OF INVESTING ACROSS SECTORS, INCLUDING LIFE-SCIENCES, HEALTH CARE, CONSUMER, CLIENT AND AI. MAR HERSHENSON IS THE FOUNDING
PARTNER AND JOINS US NOW. $432 MILLION EARLY-STAGE. ARE YOU GOING TO WRITE A LOT OF CHECKS OR CHECKS GETTING BIGGER? DR. HERSHENSON: I THINK IT IS A COMBINATION OF BOTH. THE CHECKS HAVE BEEN GETTING BIGGER AND WE HAVE GROWN OUR INVESTMENT TEAM FROM TWO PEOPLE 10 YEARS AGO TO KNOW 12 PEOPLE. ED:
IT IS A BROAD RANGE OF TARGETS. I WONDER HOW MUCH IS IN THE PHYSICAL WORLD VERSUS SOFTWARE. DR. HERSHENSON: MOST OF IT IS SOFTWARE. ED: OK. DR. HERSHENSON: WE ARE VERY FOCUSED ON BUSINESS AT SCALE AND A LOT OF THAT HAS TO DO WITH SOFTWARE. ALTHOUGH, WE DO HAVE SEMICONDUCTORS IN THE PHYSICAL WORLD. CAROLINE: WHAT IS FASCINATING ABOUT THE COMPANIES YOU HAVE CHOSEN TO BACK IS THE DIVERSITY OF THEIR LEADERSHIP.
A LOT OF FEMALE FOUNDERS, DIVERSE FOUNDERS. ARE THERE STILL A LOT OF COMPANIES BEING GROWN BY DIVERSE FOUNDERS? WE KNOW THAT WHEN SILICON VALLEY BANK PULLED BACK AND THE ECONOMY PULLED BACK, IT HAS BEEN HARDER FOR DIVERSE FOUNDERS TO RAISE FUNDS. DR. HERSHENSON: I THINK DIVERSE FOUNDERS -- WE HAVE 41% OF OUR PORTFOLIO IS FEMALE FOUNDERS. THEY ARE AMAZING ENTREPRENEURS. I THINK THEY NEED MORE OF A NUDGE TO MOVE AHEAD WITH THEIR FUNDRAISING.
BUT THEY HAVE -- EVEN WITHIN THE DOWNTURN, IT IS MUCH BETTER RIGHT NOW THEN WHEN I GOT STARTED 30 YEARS AGO. IT IS ALL RELATIVE. CAROLINE: AND IT SPEAKS TO THE FACT YOU HAVE FOUND HER EXPERIENCE, YOU AND YOUR CO-FOUNDER.
THAT WAS YOUR MO. HOW ARE YOU NUDGING YOUR OWN FOUNDERS, PARTICULARLY IN AI? HOW Y ARE YOU ENSURING THEIR LUNCH IS NOT GOING TO BE EATEN? DR. HERSHENSON: I THINK THE MESSAGE FOR FOUNDERS IS ALWAYS FOCUS ON THE METRICS THAT MATTER, WORK REALLY HARD TO ACHIEVE THOSE, AND FORGET THE NOISE. IT IS THE SAME IN AI. I HAS BEEN IN THE VALLEY ALMOST
30 YEARS. I SAW THE WEB REVOLUTION, MOBILE, AND NOW AI. IT IS ALMOST THE SAME DYNAMICS. INITIALLY THERE IS GOING TO BE NOISE AND EXCITEMENT AND EVENTUALLY THERE WILL BE MASSIVE COMPANIES THAT WILL BE CREATED. WE ARE TELLING OUR FOUNDERS TO GIVE THEIR EYES ON THE BALL ON THE LONG-TERM WINS. ED: IT RAISES THE QUESTION OF HOW QUICKLY YOU RAISED THE FUNDS. WAS AI ALWAYS YOUR GOAL OR DID YOU HAVE TO PIVOT? TAKE ADVANTAGE OF LP INTERESTS. DR. HERSHENSON: NOT AT ALL.
WE ARE A GENERALIST FUND. AI IS JUST PART OF WHAT WE DO. THERE IS A LOT OF HEALTH LIFE-SCIENCES, HEALTH CARE, AI, ETC. IT IS GOING TO BE APPLIED TO ALL INDUSTRIES. YOU COULD NOT BE A COMPANY AND NOT HAVE A WEB PRESENCE OR MOBILE STRATEGY. THE SAME WITH ANY INDUSTRY WE ARE GOING INTO.
FOR OUR EXISTING FOUNDERS THAT STARTED THE COMPANY BEFORE CHATGPT, WHICH IS WHEN THE POPULATION BECAME AWARE OF AI, WE ARE TELLING THEM, HEY, THERE IS NEW TECHNOLOGY. YOU SHOULD BE ADOPTING THIS. THE SAME WITH LP'S. OUR JOB IS TO GIVE THE RIGHT ADVICE AHEAD OF WHAT IS COMING.
ED: OR TEMPER EXPECTATIONS. DR. HERSHENSON: OF COURSE. ED: YOU CALL YOURSELVES GENERALISTS. YOU THINK ABOUT LIFE-SCIENCES, CLIMATE, AND AI. WHAT ABOUT THE INBOUND? ARE YOU RECEIVING MORE PITCHS FROM AI? DR. HERSHENSON:
IT HAS CHANGED DRAMATICALLY. EVEN 12 MONTHS AGO OR 18 MONTHS AGO THE AMOUNT OF INBOUND FROM CRYPTO WAS REALLY HIGH. THAT IS ALMOST ZERO. TODAY THE INBOUND FROM AI IS
REALLY HIGH AND SO WAS CLIMATE. I THINK THIS AI -- IF YOU START ANY SOFTWARE COMPANY TODAY, YOU WOULD PROBABLY BE THINKING ABOUT HOW DO I INCORPORATE AI? WHEN YOU ARE AT THE APPLICATION LAYER WE ARE GOING TO SEE MORE OF THIS AI. CAROLINE: NOT WISHING FOR YOU TO GIVE AWAY YOUR SECRET SAUCE BUT THE FOUNDERS YOU FIND, HOW ARE YOU SEARCHING? I KNOW YOU GO TO DORMS. YOU HAVE GOT THE WAY IN WHICH YOU GET STUDENTS ON BOARD. BUT WHERE GEOGRAPHICALLY ARE THESE FOUNDERS? YOU COME FROM SPAIN AND THE OTHER CO-FROM IRAN.
HOW ARE YOU DIVERSIFYING TO BUILD THESE COMPANIES? DR. HERSHENSON: FINDING THE RIGHT FOUNDERS AND VENTURES IS INTENTIONAL. WE ARE NOT SITTING IN A CHAIR WAITING FOR PEOPLE TO SHOW UP. WE ARE OUT THERE TRYING TO FIND
A. WE RUN MULTIPLE PROGRAMS. SOME OF OUR MOST WELL-KNOWN ARE PEAR DORM, WHERE WE SPEND A LOT OF TIME IN UNIVERSITIES TRYING TO FIND THOSE HIGH POTENTIAL FOUNDERS THAT CAN START COMPANIES. 40% OF OUR PORTFOLIO WILL COME FROM THOSE FOUNDERS.
THIS IS HOW PEAR STARTED. IT WAS NOT IMMEDIATELY OBVIOUS 10 YEARS AGO THAT YOU SHOULD BUILD A FIRM AND SOURCE THOSE FOUNDERS. IN THE LAST COUPLE OF YEARS, WE HAVE PUT TOGETHER A PROGRAM TARGETING FEMALE ENGINEERS, CALLED FEMALE FOUNDERS CIRCLES. IT HAS BEEN EXTREMELY
SUCCESSFUL WHERE WE FORM COMMUNITY FOR FEMALE ENGINEERS. BEFORE THEY WERE STARTING THEIR COMPANY. WE HAVE DONE FOUR COHORTS AND WITHIN THE FIRST THREE OUT OF 105 WOMEN, WE HAVE HAD NEARLY 60 COMPANIES THAT HAVE RAISED SIGNIFICANTLY. ED: I WANT YOUR SECRET SAUCE.
[LAUGHTER] YOU INVESTED IN DOORDASH EARLY. IT WAS A SUCCESS. HOW DID YOU IDENTIFY THEM? DR. HERSHENSON: THE DOORDASH STORY IS INTERESTING. IT IS PART OF HOW PEAR WORKS.
MY PARTNER AND I STARTED PEAR. WE ARE BOTH VERY DIFFERENT. I WAS AN OPERATOR AND WE CAME TOGETHER TO ACTUALLY FORM PEAR, WHICH IS MORE THAN INVESTMENT. TONY REACHED OUT TO ME AND SAID, HE IS AMAZING. WE SHOULD BACK HIM. I SAID, WHAT DOES HE DO? HE SAID, FOOD DELIVERY. OH NO, THAT IS VERY COMPLEX.
WE ARE NOT GOING TO DO THAT. HE SAYS, YOU HAVE TO MEET HIM. I SPENT A LOT OF TIME WALKING UP AND DOWN UNIVERSITY AVENUE AND TALKING TO EVERY RESTAURANT OWNER OR MANAGER AND ASKING THEM WHY. A LOT OF WHAT THEY SAID WAS, THIS CHANGED MY BUSINESS, TONY IS AMAZING. SO WE SPENT A COUPLE OF HOURS WITH THE WHOLE FOUNDING TEAM AND TONY WAS PERHAPS THE ONLY CEO THAT INSTEAD OF SLIDES HE HAS A WHITEBOARD AND HE TELLS YOU WHY THIS IS GOING TO BE A GREAT COMPANY. HE SAID IT WAS NOT GOING TO BE A FOOD DELIVERY COMPANY. HE WAS BRINGING TOGETHER THE
LARGEST LAST MILE DELIVERY COMPANY. HE HAD A CLEAR VISION. CAROLINE: GREAT HEARING SOME OF THE SECRET SAUCE. [LAUGHTER] THANK YOU SO MUCH. MAR HERSHENSON OF PEAR VC, THANK YOU. WE ARE GOING TO TALK ALL THINGS APPLE.
YOU ARE GIVING UP THIS WEEKEND FOR WWDC ON MONDAY. MEANWHILE, NETFLIX. SHAREHOLDERS REJECTING PAY PACKAGES FOR THE LEADERSHIP. THE BOARD CAN DISREGARD THE RESULTS AS THEY HAVE DONE IN THE PAST. ALTHOUGH THE VOTE IS SIGNIFICANT GIVEN THE STRIKE BETWEEN HOLLYWOOD STUDIO SCREENWRITERS. THIS IS BLOOMBERG.
CAROLINE: TIME FOR TALKING TE CH. RUSSIA ACCUSING THE UNITED STATES INTELLIGENCE OF PACKING PHONES BELONGING TO RUSSIAN NATIONALS. RUSSIA'S MADE SECURITY SERVICE DID NOT IDENTIFY WHICH U.S. INTELLIGENCE AGENCY WAS BEHIND THE ALLEGED ATTACKS. MEANWHILE, IT IS A REVOLVING DOOR OVER A TWITTER. THE EXECUTIVE A IN CHARGE OF CONTENT MODERATION HAS RESIGNED.
SHE CONFIRMED HER DEPARTURE IN AN EMAIL. EARLIER WALL STREET JOURNAL SAID THE HEAD OF BRAND SAFETY ALSO DEPARTING. APPLE IS WORKING ON PLANS TO EXPAND AND REVITALIZE ITS RETAIL CHAIN. IT IS AIMING TO PUSH DEEPER INTO CHINA AND OTHER PARTS OF ASIA WHILE OVERHAULING THE U.S. AND EUROPE.
IT WILL ADD 50 NEW OR REBUILT STORES THROUGH 2027, INCLUDING IN SHANGHAI AND LONDON. ED: LET'S STICK WITH APPLE. THE BLOOMBERG PREVIEW OF APPLE WDDC IS OUT ON THE BLUEGER WEBSITE. LET'S BRING IN MARK GURMAN. THE HIGHLIGHT IS THE MIXED REALITY HEADSET. WHAT ARE WE EXPECTING? MARK: THANK YOU FOR HAVING ME.
ON MONDAY, JUNE 5, THIS WILL BE APPLE'S BIGGEST LAUNCH EVENT IN A DECADE SINCE THEY LAUNCHED THE APPLE WATCH AND THE LARGE-SCREEN IPHONES. THE ENTREE IS A MIXED REALITY HEADSET, LIKELY THE REALITY PRO OR APPLE XR PRO. THIS WILL BE APPLE'S HOT NEW PRODUCT. THEY THINK IT IS GOING TO START SLOW BUT BECOME A HIT WITH CONSUMERS AND BE THE FUTURE OF THE COMPUTER.
IT IS GOING TO BLEND AUGMENTED REALITY AND VIRTUAL REALITY. IT WILL LET YOU DO EVERYTHING YOU DO TODAY ON AN IPAD OR MAC IN 3D. IT IS GOING TO GIVE META AND THE OTHER HEADSET MAKERS A HUGE RUN FOR THEIR MONEY. APPLE BELIEVES THE CATEGORY
DOES NOT REALLY EXIST TODAY AND THEY ARE GOING TO CREATE THE MIXED REALITY CATEGORY. I TEND TO BELIEVE IN THIS PRODUCT. CAROLINE: A LOT OF YOUR STORIES DEDICATED TO IT. WHAT ELSE DO YOU MIND ABOUT WHAT IS GOING ON? MARK: I WILL GIVE YOU THE OTHER HIGHLIGHTS. MAC.
YOU WILL SEE THE NEW HIGH-END MAC STUDIOS. THEY HAVE BEEN PLANNING TO UNVEIL THE NEW 15 INCH. ON THE SOFTWARE SIDE, THE REVAMP TO THE APPLE WATCH SOFTWARE. IOS17 AND NEW MAC SOFTWARE.
CAROLINE: HE DID IT. HE ALWAYS DOES. WHEN I COULD END THE CONVERSATION HERE. WE ARE JUMPING ON TWITTER SPACES WITH MARK GURMAN, MYSELF AND ED IN HALF AN HOUR. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." WE HAVE THE PODCASTS FOR YOU TO CATCH UP IF YOU MISSED IT.
2023-06-08 20:06
