Apple Eyes AI Server Chips, Lyft CEO Talks Growth Plans | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER CAN LIVE IN SILICON VALLEY AND BEYOND. THIS IS "BLOOMBERG TECHNOLOGY" WHAT CAROLINE HYDE AND ED LUDLOW. >> LIVE FROM NEW YORK AND SAN FRANCISCO, THIS IS BLOOMBERG TECHNOLOGY. PRESIDENT TRUMP FLOWS POTENTIALLY AN 80% TARIFF ON CHINA AHEAD OF NEGOTIATION DUE TO BEGIN ON SATURDAY. THIS AS HE URGES BEIJING TO DO MORE TO OPEN UP THEIR MARKETS TO U.S. GOODS. ED:
APPLE WORKING ON NEW CHIPS FOR FUTURE DEVICES INCLUDING SMART GLASSES, POWERFUL MACS, AND AI SERVERS. CAROLINE: LYFT JUMPING AFTER REPORTING STRONG GROSS BOOKINGS IN THE FIRST QUARTER. FIRST, WE CHECK ON THE MARKETS AND WE ARE RELATIVELY CALM. HEADING INTO THE WEEKEND WHERE WE SEE A LITTLE BIT OF A DRAWDOWN ON THE LAST FIVE TRADING DAYS, AFTER TWO PHENOMENAL DAYS, WE TRIM BY .2%. IT IS ALL ABOUT TARIFFS, NEGOTIATIONS WITH CHINA, WHETHER THERE IS ANY SORT OF ICEBREAKING. ED:
THAT IS WHY I'M LOOKING AT TESLA. I DON'T SEE A HEADLINE DRIVER ON THE TERMINAL THIS MORNING, BUT TESLA IS HEADING FOR ITS THIRD STRAIGHT WEEKLY GAIN. THE LOGIC IN THE LAST 24 HOURS HAS BEEN, IF THE TARIFF NARRATIVE WITH CHINA IMPROVES, NAMES LIKE TEST LEVEL SEE A REPRIEVE. TESLA EXPORT SOME VEHICLES FROM SHANGHAI. THE MIX OF VEHICLES, HIGHER
MARGIN FOR TESLA. WE ARE TRYING TO EXTRAPOLATE FROM WHAT THE PRESIDENT SAID YESTERDAY ABOUT WHAT MIGHT HAPPEN IN THE CONTEXT OF TARIFFS, AND THAT HE TAKES TWO TRUTH SOCIAL AND SAYS MORE. CAROLINE: LET'S BRING UP THAT POST FROM EARLIER THIS MORNING, SAYING HAVING 80% TARIFFS ON CHINA SEEMS ABOUT RIGHT, THEN LEAVING IT UP TO TREASURY SECRETARY SCOTT BESSENT. LET'S GET THE INSIDE TRACK WITH MICHAEL SHEPPARD. 80%, IS THAT A POSITIVE OR NEGATIVE FOR THE MARKET? MICHAEL: IF THE MARKET WERE LOOKING FOR A BIG CONCESSION ON THIS, THEY GOT THE SIGNIFICANT CUT FROM THE CURRENT 145% TARIFF LEVEL. KEEP IN MIND, 80% TARIFFS ON GOODS COMING IN FROM CHINA IS STILL PRETTY EYE WATERING.
IT'S ON A LEVEL THAT WOULD DISCOURAGE MOST TRADE. WE HAVE SEEN COMPANIES INCLUDING APPLE FOR INSTANCE TRYING TO SHIFT THEIR SUPPLY CHAINS AND SUPPLY LINES WHEN IT COMES TO CHINA TO REDUCE THEIR EXPOSURE TO CHINA WHEN IT COMES TO GOODS EXPORTED TO THE U.S. IT IS INTERESTING THE PRESIDENT IS ALSO FRAMING THIS AS A CHALLENGE TO CHINA TO OPEN UP ITS MARKETS, EVEN AS HE IS MAINTAINING WHAT WOULD BE AN HISTORICALLY HIGH BARRIER THERE. ED: THE PRESIDENT, INDEED THE BRITISH AMBASSADOR TO THE U.S., FRAMING THIS AS A GREAT DEAL, THE 10% LEVEL TARIFF, U.K. TO U.S.
WHEN EVERYONE KEPT ON ASKING IS, IS THIS THE TEMPLATE FOR YOUR OTHER NEGOTIATIONS? THE PRESIDENT BASICALLY SAID 10% IS A GREAT DEAL, IT WILL NOT BE LIKE THAT FOR OTHER COUNTRIES. MICHAEL: THAT'S RIGHT, AND THAT IS THE QUESTION ON THE MINDS OF TRADING PARTNERS AND COUNTRIES AROUND THE WORLD. THEY WANT TO KNOW HOW DO WE NEGOTIATE WITH THIS ADMINISTRATION THAT HAS COME IN REALLY ELBOWS OUT ON TRADE FROM THE START? WHAT WE HEARD FROM HOWARD LUTNICK LAST NIGHT WAS THAT THIS MAY NOT BE A TEMPLATE PER SE BUT IT IS A ROAD MAP. IT GIVES A FRAME TO OTHER COUNTRIES, TRADING PARTNERS ABOUT WHAT SORTS OF CONCESSIONS THE TRUMP ADMINISTRATION MIGHT BE LOOKING FOR. WHEN IT COMES TO THE U.K., THEY CAME IN WITH SOME OFFERS THAT WERE QUITE APPEALING TO DONALD TRUMP. THE U.K. AGREED TO BY 3 BILLION WORTH OF BOEING AIRCRAFT, VERY MUCH MUSIC TO HIS EARS AS HE TRIED TO STOKE THE MANUFACTURING BASE HERE IN THE U.S.
ALSO SOME AGRICULTURAL CONCESSIONS, WITH PROMISES TO INCREASE PURCHASES OF AMERICAN BEEF. THE U.K. FOUND A WAY TO GET THE RECIPROCAL TARIFF LOWERED ALL THE WAY TO 10%. THAT MAY NOT BE THE CASE WITH OTHER COUNTRIES. NEGOTIATIONS WITH SOUTH KOREA AND JAPAN WILL FACE A MUCH TOUGHER AND MUCH MORE COMPLICATED ROAD, HOWARD LUTNICK INDICATED YESTERDAY. ED: MICHAEL SHEPPARD AND WASHINGTON, D.C. THANK YOU. SEMICONDUCTING INTERNATIONAL PLUNGED FRIDAY AFTER IT WARNED SALES COULD FALL AS MUCH AS 6% THIS QUARTER BECAUSE OF PRODUCTION DISRUPTIONS.
THE COMPANY'S CO-CEO CITED UNSPECIFIED ISSUES WITH PRODUCTION LINES AND WARNED OF A LIKELY SHIPMENT CORRECTION IN THE SMARTPHONE MARKET OVER THE SUMMER. CAROLINE: LET'S TURN TO APPLE. THE TECH GIANT IS SAID TO BE DESIGNED A NEW CHIPS TO BE USED IN FUTURE DEVICES, SMART GLASSES, MORE POWERFUL MACS, AI SERVERS.
LET'S GET TO MARK GURMAN. FINALLY THOSE ARABIANS WILL HAVE SOME COMPETITION BUT IT WILL TAKE SOME YEARS. MARK: THAT IS THE BIG NEWS, META SMART GLASSES WILL HAVE SOME COMPETITION. APPLE HAS BEEN WORKING ON THIS PROJECT FOR SOME TIME INCLUDING THOSE WITHOUT AUGMENTED REALITY, AND THOSE WITH AUGMENTED REALITY. YOU NEED A PRODUCT TO HOLD YOU OVER UNTIL THEN. THEY HAVE SEEN THE METAS ARE POPULAR, ARTIFICIAL INTELLIGENCE WILL BE A BIG PART OF HARDWARE, SO THEY ARE GOING DOWN THIS ROAD. AS WITH OTHER CATEGORIES, THEY
ARE DEVELOPING A CUSTOM CHIP BASED ON THE APPLE WATCH PROCESSOR, SPECIAL COMPONENTS TO INCREASE POWER, EFFICIENCY, DECREASE POWER DRAW, AND CONTROL MULTIPLE CAMERAS THAT WOULD BE ON THE EXTERIOR OF THE GLASSES. THEY WOULD WORK LIKE META'S WHERE YOU CAN LOOK AT ITEMS AND ASK FOR CONTEXT USING SIRI. ED: THIS IS CONSISTENT WITH APPLES STRATEGY ON CUSTOM SILICON. MANY OF THE PROCESSES ARE APPLE'S OWN I BELIEVE MADE BY TSMC, FABRICATED BY TSMC. EXPLAIN APPLE'S FOOTPRINT IN THAT SENSE. MARK: THEY HAVE THEIR OWN CUSTOM PROCESSORS AND EVERY DEVICE THEY SELL -- THEY MOVED AWAY FROM INTEL IN 2020. THE MAC NOW HAS THESE HIGH
SERIES M PROCESSORS. IPHONE IN THE LOWER IPADS HAVE THE A SERIES PROCESSORS. OF COURSE, THEY ARE GOING TO DO IT FOR THE GLASSES AS WELL AS A SIGNIFICANT PRODUCT CATEGORY WITHIN THAT VISION BRAND IN ALL LIKELIHOOD. THEY USE TSMC FOR THAT FINAL MANUFACTURING BUT MUCH OF THE DESIGN IS DONE IN-HOUSE FROM APPLE, IN THEIR LABS, ACROSS EUROPE, THE UNITED STATES, AND THEY HAVE A LICENSE WITH ARM. THEY USE FUNDAMENTAL UNDERLYING TECHNOLOGIES FROM ARM. ED:
MANY PEOPLE TALK ABOUT APPLE BEING A FAB-LESS DESIGNER. WE ARE GOING TO SPEAK TO THE LYFT CEO WHO POSTED BETTER-THAN-EXPECTED GROSS BOOKINGS IN THE FIRST QUARTER. CAROLINE: TIME FOR TALKING TECH. SHARES OF CROWDSTRIKE LOWER
TODAY. U.S. REGULATORS ARE PROBING SENIOR EXECUTIVES OVER WHAT MAY HAVE BEEN KNOWN BY THEM ABOUT ITS $32 MILLION DEAL WITH CARA HSOFT. TSMC RISING TODAY AS THE COMPANY POSTED A REVENUE JUMP OF 47% IN APRIL, AS COMPANIES INCREASE PURCHASES OF ESSENTIAL COMPONENTS. THEY SEE CONTINUED RESILIENT DEMAND FROM A BUT RECENT SURGES IN THE TAIWAN DOLLAR HAVE COMPRESSED THE COMPANY'S MARGINS GOING FORWARD.
PANASONIC IS CUTTING 10,000 JOBS IN AN EFFORT TO BOOST PROFITABILITY. THE WORK PRODUCTION COULD SEE 5000 EMPLOYEES IN JAPAN AND 5000 OVERSEAS PERSONNEL BE LET GO. PANASONIC EXPECTS ABOUT 890 $5 MILLION IN RESTRUCTURING CHARGES THIS YEAR. ED: SHARES OF LYFT UP ABOUT 20% TODAY, ON TRACK FOR THE BIGGEST JUMP SINCE NOVEMBER. THE COMPANY POSTING A BETTER-THAN-EXPECTED GROSS BOOKINGS OF $4.6 BILLION, AND AN EXPANDED SHARE BUYBACK PROGRAM.
LYFT CEO DAVID RISHER JOINS US NOW. INTERESTING, IN YOUR FORWARD-LOOKING STRATEGY ON THE CALL, HUBER SAYS THE SAME, THERE ARE PARTS OF AMERICA WHERE RIDESHARE IS LESS PERVASIVE, PEOPLE DON'T USE AS MUCH. PROBABLY THEY DRIVE THEIR OWN CAR. YOU WANT TO GO AFTER THAT MARKET. WHY AND HOW? DAVID:
THE ANSWER IS WE HAVE GOTTEN REALLY GOOD AT OBSESSING OVER OUR CUSTOMERS AND WE WANT TO GO BIGGER. THIS IS ON THE 16TH CONSECUTIVE QUARTER OF GROWTH. WE ARE A PROFITABLE COMPANY, GENERATING $900 MILLION OF CASH, AND YET, THE RIDESHARE MARKET IS STILL TINY. 160 BILLION RIDES A YEAR, AND WE ONLY DO A COUPLE BILLION BETWEEN US. SO MUCH OPPORTUNITY. IT IS REALLY BETTER TO HAVE
SOMEBODY ELSE DRIVING YOU, AND WE WANT TO DO IT IN PLACES LIKE INDIANAPOLIS, WHERE THE OPPORTUNITIES ARE EVEN BIGGER. ED: CASH. LAST WEEK, WE WERE TALKING ABOUT MNA IN EUROPE. A MODEST DEAL. THE BUYBACK IS CLEARLY WELL RECEIVED BY YOUR INVESTORS, BUT THAT WOULD INDICATE THAT YOU HAVE SOME ABILITY TO DO MNA GOING FORWARD. DO YOU SEE THAT IN YOUR CAPITAL PLANS? IF YOU DID BUY SOMETHING, WHAT WOULD IT BE? DAVID: FIRST, THANK YOU FOR ACKNOWLEDGING THIS.
THIS IS A BUSINESS GENERATING NEARLY A BILLION DOLLARS IN CASH. WONDERFUL PLACE TO BE. AGAIN, HUGE THANKS TO THE CREDIBLE DUTCH INCREDIBLE TEAM WORKING SO DANG HARD TO MAKE THIS BUSINESS NOT ONLY GREAT FOR CUSTOMERS BUT SHAREHOLDERS AS WELL. SO WHAT ARE THE OTHER OPPORTUNITIES? OUR NEAR-TERM FOCUS IS PUTTING OUR CASH TO WORK. THIS WILL ALLOW US TO EXPAND INTERNATIONALLY. NOTHING TO ANNOUNCE RIGHT NOW OTHER THAN THE BUYBACK. BUT IT IS GREAT TO BE IN A
STRONG POSITION. WE HAVE A STRONG BALANCE SHEET AND GOOD INCOME STATEMENT. CAROLINE: STRONG POSITION WHERE YOU CAN FIGHT OFF COMPETITORS. A PUSHY INVESTOR WANTING CHANGE IS POTENTIALLY AT THE BOARD LEVEL BUT THEY HAVE WITHDRAWN THAT BECAUSE OF WHAT YOU GAVE TO THE INVESTOR BASE IN TERMS OF BUYBACKS. IS THAT A SIGH OF RELIEF? DAVID: WE TALK TO INVESTORS ALL THE TIME. NOT SO MUCH THE SIGH OF RELIEF AS MUCH AS, IT ALLOWS US TO FOCUS ON OUR RIDERS AND DRIVERS.
IT IS GREAT THAT INVESTORS ARE RESPONDING SO WELL TO WHAT WE ARE DOING. SHARE BUYBACK IS GREAT. PROFITABLE GROWTH QUARTER AFTER QUARTER IS GREAT. THIS IS WHAT I'VE ALWAYS SAID, IT IS CUSTOMER OBSESSION THAT DRIVES PROFIT GROWTH. CAROLINE: THAT CUSTOMER OBSESSION DRIVES INNOVATION, DRIVES AUTONOMOUS VEHICLES.
HOW MUCH ARE YOU GOING TO SEE DRIVERLESS VEHICLES, SAFETY DRIVERS IN THE CAR, WHAT WILL THAT LOOK LIKE AS A PILOT? DAVID: THIS IS A PILOT THAT WE ARE DOING WITH MAY MOBILITY. AUTONOMOUS VEHICLES ARE HERE IN SAN FRANCISCO, L.A., OTHER PLACES. IT WILL BE MANY YEARS BEFORE THEY ARE A BIG DEAL, BUT AS THEY COME, IT SUCH A GREAT OPPORTUNITY FOR RIDESHARE AND LYFT. WE CAN PROVIDE BETTER SERVICE USING BETTER TECHNOLOGIES. AS YOU SAY, STARTING IN ATLANTA
IN THE MIDDLE OF THE SUMMER. WE WILL START WITH CONFIDENCE DRIVERS, SOMEBODY ELSE IN THE CAR TO MAKE SURE THAT PEOPLE FEEL COMFORTABLE WITH WHAT IS GOING ON. IT WILL BE A SMALL PILOT, BUT IT WILL GROW INTO TEXAS NEXT YEAR WITH THE PARTNERSHIP WITH MOBILEYE, AND THEN WE WOULD KEEP ON BUILDING. ED: YOU ARE A TECHNOLOGY CEO. AS SUCH, YOU MUST FEEL QUESTIONS ON ECONOMICS AND THE STATE OF TRADE AND TRAVEL. IT'S OUR FAVORITE THING TO DO. UBER REFLECTED ON THE IDEA OF CROSS-BORDER TRAVEL, CANADA INTO THE U.S., IN DOWN TRAVEL BEING SOFT. PEOPLE ARRIVING AT AIRPORTS, ARE THEY OR ARE THEY NOT DOING RIDESHARE? WHAT ARE YOU SEEING THROUGH THE STATE OF THIS ECONOMY? DAVID: WE ARE SEEING STRENGTH.
ED: GRANULAR, WHERE, HOW. DAVID: LET'S GO BACK TO EARLIER THIS WEEK, CINCO DE MAYO, NOT A NECESSARILY HUGE HOLIDAY. BUT WE SAW ONE OF OUR BIGGEST HOLIDAYS EVER. THE END OF MARCH, OUR STRONGEST WEEK EVER IN TERMS OF RIDE VOLUME. WHAT WE ARE SEEING HERE IS,
RIDESHARE HAS BECOME A VERY STABLE PART OF SO MANY PEOPLE'S LIVES, THAT I DON'T EXPECT CONSUMER SENTIMENT TO FLUCTUATE AROUND, TO SEE THAT MUCH DIFFERENCE. LET'S TALK ABOUT AIRPORTS BECAUSE YOU ASKED. QUARTER TO QUARTER, THEY ARE FLAT. THE COMMUTE IS GOING UP FASTER. IF YOU LOOK AT IT THAT WAY, COMMUTE IS GROWING FASTER. EVEN WHEN YOU LOOK AT AIRPORTS, ONLY ONE IN FIVE PEOPLE USE RIDESHARE TO GET TO THE AIRPORT IN THE FIRST PLACE. THAT MEANS 80% IS STILL OUT
THERE FOR THE PICKINGS. OUR FOCUS IS TRYING TO EXPAND THE MARKET. I DON'T THINK THE MACRO STOP IS A BIG DEAL FOR US. CAROLINE: YOU ARE GROWING IN CANADA. I HAVE ASKED TIME AND AGAIN, IS THERE ANY IMPACT FROM BEING AN AMERICAN BRAND GOING INTO A COUNTRY SUCH AS CANADA RIGHT NOW? WE ARE HEARING SOME PUSHBACK. DAVID: IT IS SO INTERESTING. NO IS THE REAL ANSWER. WE JUST GOT AUTHORIZATION TO OPEN UP IN THE PROVINCE OF QUEBEC, WHICH WE MIGHT HAVE WONDERED GIVEN EVERYTHING GOING ON. WE HAVE ACTUALLY SEEN ACCEPTANCE.
TORONTO IS A BIG CITY FOR US. CAROLINE: DAVID RISHER, CONGRATULATIONS ON THE NUMBERS. THANK YOU FOR JOINING US. BY NOW, PAY LATER, A FIRM IS
ANNOUNCING A DEAL WITH COSTCO. COO MAX LEVCHIN IS JOINING US TO TALK ABOUT EARNINGS. THIS IS "BLOOMBERG TECHNOLOGY." ED: PINTEREST SHARES UP AFTER THE COMPANY REPORTED SECOND-QUARTER REVENUE GARDENS THAT BEAT EXPECTATIONS AND TOLD ANALYSTS THE PLATFORM WAS LEVERAGING AI TO ATTRACT ADVERTISERS. THE CEO SPOKE TO BLOOMBERG
EARLIER. >> PINTEREST IS WHERE GEN Z GOES TO SHOP. IT IS OUR LARGEST GROWING DEMOGRAPHIC, OVER 40% OF USERS. WE ARE GIVING THEM A GREAT SHOPPING DESTINATION BUT THAT HAS ALLOWED US TO DELIVER GREAT PERFORMANCE FOR OUR ADVERTISERS. WE DELIVERED A PERFORMANCE ADVERTISING PLATFORM WHERE ADVERTISERS CAN GET CLICKS AND CONVERSIONS. WE ARE GIVING THEM A-ENABLED TOOLS, SO IT EASY FOR THEM TO CREATE CAMPAIGNS ON PINTEREST AND SEE GREAT RETURNS ON THAT.
WE HAVE MADE PINTEREST A SHOPPING DESTINATION. 80% OF OUR USERS COME TO US DIRECTLY AND THEN WE CONNECT THEM WITH ADVERTISERS, MAKING IT EASY TO CONNECT WITH THOSE ADVERTISERS, LOOKING FOR SOMETHING TO BUY BUT HAVE NOT DECIDED ON WHAT TO BUY. THAT'S A GREAT MOMENT FOR THOSE TWO TO MEET. WE SEE THAT CONTINUING TO ACCELERATE. WE ARE AT ALL-TIME HIGHS OF
USERS AND DEPTH PER ENGAGEMENT OF USER REALLY DRIVEN BY AI AND PERSONALIZATION, HOW WE ARE CONNECTING SHOPPERS AND SELLERS. CAROLINE: IS THAT KEEPING THE LIKES OF TEMU AND SHEIN, IS THAT STICKING AROUND? MANY WERE WORRIED BECAUSE OF THE TARIFFS, DIFFICULTY ACCESSING THE U.S. CONSUMER IN TERMS OF PRICE POINT, WE WOULD SEE RETRENCHMENT IN TERMS OF ADS FROM THOSE COMPANIES.
>> WE ARE A GLOBAL PLATFORM, 500 70 MILLION USERS, 80% OUTSIDE OF THE U.S. FOR ASIAN CROSS-BORDER SELLERS, THAT HAS SLOWED DOWN COMING INTO THE U.S., BUT WE ARE SEEING THOSE SELLERS SO MORE GLOBALLY. WE ARE HELPING THEM TO CONNECT TO OTHER MARKETS IN THE WORLD.
HERE IN THE U.S., CONSUMERS ARE RESILIENT. LOTS OF INFORMATION THAT SAYS CONSUMERS ARE STILL SHOPPING. WE WENT THROUGH A MAJOR SUPPLY CHAIN DISRUPTION DURING THE PANDEMIC. WE ALL SAW THINGS OUT OF STOCK.
CONSUMERS FOUND WAYS, OTHER THINGS TO BUY. WE SEE THAT ON THE PLATFORM. WHILE YOU HAVE BUDGET-CONSCIOUS SEARCHES LIKE BUDGET FROM THE RECIPES, PARTY DECORATIONS, BUDGET PARTY FAVORS UP 200% YEAR ON YEAR, PEOPLE FIND OTHER WAYS TO BRING TO LIGHT INTO THEIR LIFE. WE ARE A GREAT PLACE TO HELP THEM DO THAT, A GREAT PLACE FOR ADVERTISERS TO SEE THESE SHIFTING CONSUMER TRENDS.
CAROLINE: LET'S STICK WITH EARNINGS WITH THE CONSUMER SENTIMENT, AS WELL. LET'S GO TO A BY NOW, PAY LATER COMPANY, AFFIRM. THE INCREASED GUIDANCE. CEO OF IS WITH US. ANALYSTS CALLING THIS A KNEE-JERK REACTION, LOFTY EXPECTATIONS, BUT DO YOU STILL SEE THE CONSUMER SPENDING RIGHT NOW? MAX: WE ARE. HE IS RIGHT. THE U.S. CONSUMER HAS FOUND NEW THINGS
TO BUY, NEW THINGS TO BE EXCITED ABOUT. WE ARE SEEING STRONG GROWTH. JUST POST A 36% GROWTH, THIRD-QUARTER ACCELERATION. THE RUMORS OF U.S. CONSUMER DECLINE ARE SOMEWHAT EXAGGERATED IT SEEMS. CAROLINE: MAYBE IT IS LOFTY EXPECTATIONS. MAYBE YOU'LL TELL ME THAT YOU DON'T CHECK IN ON THE SHARES MUCH, BUT WHEN YOU SEE SENTIMENT LIKE THIS, WHAT DO YOU THINK INVESTORS ARE SHYING AWAY FROM, COMPETITION? MAX: HARD FOR ME TO TELL.
I TRY NOT TO CHECK TOO OFTEN. I CARE MORE IF THE TEAM, THEIR WORK IS UNDERSTOOD BY THE MARKET. I THINK IT TOOK OUR CONSUMERS AND MERCHANT PARTNERS ABOUT A DECADE TO FULLY GRASP JUST HOW DIFFERENT AND ACCRETIVE WE ARE TO THEIR SALES, HOW POWERFUL THIS WHOLE NEW IDEA IS.
THEY SAY SLOWLY AT FIRST AND THEN ALL AT ONCE. THAT IS MY HOPE FOR THE MARKET. ED: MAX, LET'S TALK ABOUT COSTCO. YOU HAVE THIS ARRANGEMENT TO ALLOW COSTCO CUSTOMERS TO PAY OVERTIME. I AM A MEMBER, I HAVE A CITI CREDIT CARD. THE BENEFIT IS THAT IT GIVES ME
5% BACK ON GAS, 4% ON GROCERIES. YOU AND I HAVE TALKED ABOUT THIS A LOT, THE ACADEMIC APPROACH TO WHETHER YOU SHOULD PUT SOMETHING ON CREDIT OR NOT. JUST EXPLAIN HOW YOU THINK YOU'LL BE COMPETITIVE AGAINST COSTCO MEMBERS LIKE I WITH THIS OFFER? MAX: I'M NOT SURE I'M GOING TO BE COMPETITIVE. LIKE EVERYTHING AT COSCO, IT'S OFFERED A GREAT VALUE, CERTAINLY NOT SOMETHING THAT WE ARE TRYING TO TALK YOU OUT OF IF YOU ARE COMMITTED TO IT. WE SPEAK TO A YOUNGER DEMO THAN THE TYPICAL CREDIT CARD CONSUMER WHO IS VERY MILES CONSCIOUS.
THEY CHOOSE TO BORROW WITH AFFIRM BECAUSE THEY HAVE A POINT OF VIEW ON THEY DON'T LET CREDIT CARD DEBT, THEY WANT TO KNOW THE TRUE COST OF THE THING THEY ARE BUYING. THEY WANT TO KNOW WHEN THEY ARE OUT OF DEBT AND FULLY PAID OUT. LESS INTERESTED IN REWARDS, MORE INTERESTED IN TRANSPARENCY OF PRICING. I THINK COSCO UNDERSTANDS THAT AS THEY TRY TO ATTRACT YOUNGER BUYERS, THAT IS WHY THEY PARTNERED WITH US. ED: I AM NO LONGER IN THE YOUNGER DEMOGRAPHIC. MAX: YOU ARE STILL IN A YOUNG DEMOGRAPHIC. ED: THE TOP END OF THE GUIDE WAS
ABOVE CONSENSUS. WHERE WERE THE SPECIFIC ELEMENTS OF STRENGTH FOR YOU, ANYTHING YOU WERE DOING ON THE TECHNOLOGY SIDE THAT IS GIVING YOU A REAL ADVANTAGE? MAX: IT IS VERY FASHIONABLE TO FLASH YOUR AI CREDENTIALS, BUT WE HAVE BUILT A REALLY MEANINGFUL BUSINESS ENTIRELY ON THE STRENGTH OF AI AND MACHINE LEARNING ALL THESE YEARS UNDERWRITING CONSUMERS WITH ALTERNATIVE DATA, DIFFERENT APPROACH TO MODELING, WHILE REMAINING FULLY COMPLIANT WITH ALL THE APPLICABLE LAWS. WE ARE A TECHNOLOGY FIRST COMPANY WITH REAL DEPTH OF APPROVALS WHILE MAINTAINING OUR CORE VALUES, SUCH AS NO LATE FEES, NO COMPOUNDING INTEREST, ALL THE THINGS THAT PEOPLE LOVE TO COMPLAIN ABOUT WHEN THEY TALK ABOUT CREDIT CARDS. THAT HAS GIVEN US REAL STRENGTH WITH THE YOUNGER CONSUMER, GEN Z.
WE HAVE A HUGE PENETRATION INTO MILLENNIAL, GEN Z DEMOGRAPHIC. THAT IS WHAT RETAILERS COME TO US FOR, TO ATTRACT THIS YOUNGER BUYER. I DON'T WANT TO THINK OF THIS AS A BY NOW, PAY FOREVER, WHICH IS WHAT CREDIT CARDS ARE. CAROLINE: IS THAT YOUNGER DEMOGRAPHIC, ANY OF YOUR DEMOGRAPHIC STARTING TO USE IT BECAUSE OF THE ECONOMIC UNCERTAINTY? IS THAT WHAT YOU ANTICIPATE GOING FORWARD? MAX: I DON'T THINK WE ARE GAINING SHARE BECAUSE OF ECONOMIC UNCERTAINTY. TBD. WE ARE LIVING IN VOLATILE MOMENTS, SO WHO KNOWS WHAT IS HAPPENING NEXT. RIGHT NOW, OUR CONSUMER COMES TO US, MORE THAN ANYTHING, FOR THE TRANSPARENCY. MORE THAN ANYTHING, WE ARE
SEEING INCREASED GROWTH RIGHT NOW BECAUSE OF THE 0% OFFERS THAT WE ARE SEEING, THE WORK THAT WE ARE PUTTING INTO THE MARKET. ED: AFFIRM CEO MAX LEVCHIN, THANK YOU FOR BEING WITH US. THEN HAD WITH WARNINGS -- ♪ CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." I’M CAROL MASSAR IN NEW YORK. ED: AND TIME ED LUDLOW IN SAN FRANCISCO. LET’S LOOK AT THE MARKETS AND
TECHNOLOGY. NASDAQ 100 AS IT STANDS, VERY MODESTLY IN DECLINE OVER THE COURSE OF FIVE DAYS. TARIFFS HAVE BEEN WHAT’S DRIVING THINGS.
I WANT TO LOOK AT ALPHABET. THE D.O.J. TRIAL IS ONE FACTOR. SEARCH CONSIDERATIONS. RIVALS LIKE APPLE AND SAYING THIS IS WHAT WE PLAN DO IN THE STERGER MARKET. IT’S REALLY IMPACTED THE STOCK. ON WEDNESDAY, 47 BILLION IN MARKET SHARE ALONE HEADING TO ABOUT DECLINE LATER THE PROGRAM. WE’LL GET INTO IT. AND THEN IN TERMS OF SPECIFIC MOVERS, WE’RE GOING TO GO TO THE EARNINGS CONTEXT VERY SHORTLY BUT THINK ABOUT THE STRENGTH THAT WE’RE SEEING IN STREAMING IN PARTICULAR. AND NOT JUST HERE IN AMERICA BUT WE’VE GOT SOME INTERESTING NEWS FROM AROUND THE WORLD. CAROLINE: WE DO.
LET’S TURN OUR ATTENTION TO NINTENDO WEAKER THAN EXPECTED FOR THE SALES FOR SWITCH 2. DESPITE IT WOULD BE THE FASTEST CONSOLE IN HISTORY. WHAT IS THIS OFF BY 3%? THEY’VE GOT TRADE AND TARIFFS TO BE THINKING ABOUT.
BUT WHY THE SLOW IN ANTICIPATED SALES? >> TARIFFS ARE THREE BIG ONE. NOBODY KNOWS WHAT’S GOING TO HAPPEN, NINTENDO INCLUDED. THEY MAKE THE MAJORITY OF SWITCH 2S THAT ARE SOLD IN THE U.S. THEY MAKE IN VIETNAM, WHICH IS ONE OF THOSE TARIFFS THAT IS STILL ON PAUSE FOR 90 DAYS ACCORDING TO PRESIDENT TRUMP.
SO WE’LL SEE WHAT HAPPENS THERE. THE OTHER FACTOR IS FLY SHORTAGE. THAT’S ALWAYS A QUESTION SURROUNDING THE RELEASE OF THESE NEW CONSULS. HOW MUCH CAN THEY MANUFACTURE AND GET TO U.S.
SHORES WITH OR WITHOUT TARIFFS? ED: LAST TECHNOLOGY CONVERSATION WITH THE SWITCH 2. INSIDE OF IT IS A HIGH PERFORMANCE NVIDIA PROCESSOR THAT TAKES THE SWITCH 2 FROM BEING A LEER FIDELITY, LOWER PERFORMANCE CONSUL TO BEING MORE ON PAR WITH PLAYSTATION AND XBOX. WHAT IS GOING TO BE DIFFERENT THIS TIME AROUND FOR THE SWITCH? CULTURALLY, HOW WILL PEOPLE APPROACH WHAT IT WILL DO AND THE TYPES OF GAMES YOU CAN PLAY ON IT? >> IT’S INTERESTING IN THAT GRAPHICAL FIDELITY HAS NOT GOTTEN THAT MUCH MORE IMPRESSIVE OVER THE LAST FOUR OR FIVE YEARS. SO NINTENDO IS PRETTY WELL POSITIONED EVEN WITH TECHNOLOGY THAT IS A FEW YEARS OLD AT THIS POINT, EVEN TECHNOLOGY THAT IS FIVE, SIX YEARS OLD, IT IS IN A GOOD POSITION TO STILL TELL GAMES AND COMPETE WITH THE OTHER TWO CONSULS. THE OTHER BIG FACTOR IS THAT
PEOPLE BUY NINTENDO CONSOLES FOR NINTENDO GAMES, MARIO CART WORLD WHICH IS EXPECTED TO SELL A LOT OF COPIES. AND THE LAST ONE SOLD OVER 70 MILLION UNITS ALONE. SO WE’RE TALKING ABOUT A CUSTOMER BASE THAT IS BUILT IN AND DOESN’T CARE QUITE AS MUCH ABOUT GRAPHICS, ABOUT THE HIGHEST END GTA LEVEL GAMES AS MUCH AS THEY DA ABOUT THESE FRANCHISES THAT ARE REALLY ALWAYS CONSISTENTLY GOOD. ED: GREAT TO HAVE YOU ON THE SHOW, THANK YOU.
SHARES OF TRADE DEBTS ARE FLOURISHING IN MORE THAN TWO YEARS, GETTING BETTER FROM BETTER THAN EXPECTED RESULTS THE BEST PERFORMER ON THE NASDAQ 100 IN TERMS OF PERCENTAGE GAIN. LAURA MARTIN JOINS US NOW. NOW, LET ME DO THIS. WHAT IS TRADE DESK? WHAT DOES IT DO? AND DOES IT DO IT WELL? [LAUGHTER] LAURA: IT’S A DEMAND SIDE PLATFORM OF DSP. TRADE DESK DELIVERS AN AD IN REAL TIME AND THAT AD HAS GONE TO AUCTION BECAUSE THEY KNOW WHO YOU ARE AND THEY KNOW HOW MUCH MONEY THAT YOU MAKE AND THEY KNOW YOU’RE IN THE FINANCIAL INDUSTRY. SO YOUR AD UNITS THAT ARE GETTING SERVE TO YOU IN MILLISECONDS ARE VERY VALUABLE. MUCH MORE VALUABLE THAN LIKE, YOU KNOW, MY KIDS WHO EARNS NO MONEY AND LIVES AT HOME. SO TRADE DESK DELIVERS THOSE IN
MILLISECONDS HAVING BOUGHT THEM AT AUCTION AND THEY REPRESENT THE LARGEST 200 ADVERTISERS. TECHNICALLY, THEY HAVE 4,000 AD BUYERS BUT THEY ONLY TOP OF -- WITHOUT A PERFORMERS METRIC ASSOCIATED WITH IT. CAROLINE: THEY ARE GETTING MORE POWER THAN EVER. THEY’RE DELIVERING ON A
TECHNOLOGY FRONT BUT THERE’S GOT A RESILIENT DESIRE TO BE ADVERTISING AT THIS MOMENT. WE’VE SEEN IT IN PINTEREST AND META FROM YOUR PERSPECTIVE, IS THE ADVERTISERS, THE MARKETERS STILL WILLING TO SPEND IN THIS ENVIRONMENT? LAURA: SO EVERY COMPANY HAS NOW REPORTED EARNINGS AND ON EVERY CALL, THEY’VE GOTTEN ASKED SINCE APRIL 2 TARIFFS, HAVE YOU SEEN DOWNDRAFT? AND WITH A COUPLE OF EXCEPTION, EVERYBODY SAYS NO. TODAY HAS BEEN FIVE WEEKS AND THEY HAVE NOT SEEN DOWNDRAFT OTHER THAN IN AREAS LIKE AUTOS OR HOME LINESES IS DOWN LIKE 40% WITH ONE COMPANY I TALKED TO SINCE APRIL 2 . SO, I THINK THIS MIGHT BE A GATHERING STORM.
SO FAR, TRADE DESK HAS NOT SEEN AN IMPACT OF TARIFF. ED: THIS WEEK IN EUROPE, WE HAVE THE SEMIFINALS OF THE CHAMPIONS LEAGUE WHICH MAKES ME THINK OF PARAMOUNT JUST AS A CASE STUDY THEY SHOWED SOME STREAMING STRENGTH, BUT ON AGGREGATE, HAVE A WHAT HAVE YOU LEARNED ABOUT THE STREAMING LANDSCAPE THIS FAR AND PARTICULARLY CONSUMER SENTIMENT? LAURA: WE CAN TALK ABOUT DIS, DISNEY, AND PARAMOUNT ALTOGETHER. BUT IN A STOCK POINT OF VIEW FIRST, I WANT TO MAKE A DISTINCTION. BECAUSE PARAMOUNT REVENUE FELL 10%. WARNER BROTHERS FELL 6%. AND BOTH OF THEM WERE PROJECTING NEGATIVE 4% REVENUE GROWTH THIS YEAR AND FLAT NEXT YEAR. WHICH BEGS THE QUESTION -- WHY DO YOU NEED TO BE IN THESE NOW? THEY’RE STILL NOT GROWING.
DISNEY BY CONTRAST, REVENUE UP 7% THIS YEAR AND 4% NEXT YEAR. A LOT OF THAT IS DRIVEN BY STREAMING. SO THAT’S WHERE I GET TO THE ANSWER TO YOUR QUESTION.
A LOT OF THAT IS DRIVEN BY, YOU KNOW, NOT ONLY DOES DISNEY HAVE MORE DIVERSITY OF ASSETS, OF COURSE, BUT IT ALSO HAS BETTER FILMS, HELPS ALTHOUGH FILMS LESS THAN 15% OF BUSINESS AT WALT DISNEY THESE DAYS BUT DISNEY IS REALLY WHAT’S DRIVING THAT OUTPERFORMS PAIRED TO WARNER BROTHERS AND PARAMOUNT. PARAMOUNT HAS THE OVERHANDING OF CAN THIS DEAL GET DONE? THAT’S A BIG LIKE CLOUD ON PARAMOUNT. BUT THE FUNDAMENTALS OF STREAMING ARE A BRIGHT SPOT BUT IF YOU CAN’T MAKE GOOD FILMS OR YOU CAN’T SELL GOOD TV, OR YOU HAVE A BIG LINEAR TV BUSINESS WHICH BOTH PARAMOUNT DOES AND WARNER BROTHERS DISCOVERY DOES, IT’S A PROBLEM. BECAUSE IT’S DRINKING TOO FAST. CAROLINE:
WHAT’S THE PROBLEM IS YOU’RE SUDDENLY GOING TO HAVE MASSIVE COSTS ON YOUR MOVIES GOING -- WELL, ANYWHERE, BEING ABLE TO MAKE CONTENT ABROAD, BEING ABLE TO BRING FOREIGN-MADE PRODUCED CONTENT INTO THE UNITED STATES THAT HAS BEEN PROPOSED BY THE ADMINISTRATION. SEEMS TO BE HURT THE VERY INDUSTRY THAT THEY’RE TRYING TO PROTECT RIGHT NOW. WHAT IS THE IMPACT FROM PARAMOUNT? WHAT IS THE IMPACT ON DISNEY IF THIS GOES INTO FULL FORCE? LAURA: EXCELLENT POINT. AS YOU KNOW, FILMS TAKE THREE YEARS TO MAKE. SO THE TARIFFS IMMEDIATELY WOULD HURT A FILM THAT STARTED THREE YEARS AGO BEFORE THIS POLICY EXISTED, BEFORE THE COMPANIES COULD REACT.
SO EVERY FILM TRYING TO COME BACK TO AMERICA THAT’S BEEN MADE OFFSHORE, WHETHER IT’S TAX ADVANTAGE OR NOT, YOU WATCH "MISSION: IMPOSSIBLE," THEY’RE GOING FOR THE TAX BREAKS THEY’RE GOING TO THESE REALLY EXOTIC LOCATIONS AND LIKE MONEY ISN’T THE REASON THEY’RE OFFSHORE. THEY’RE OFFSHORE FOR THE ART OF IT LIKE WHERE THE PLOT LINE. SO NOW THOSE FILMS ARE COME BACK OVER THE NEXT TWO YEARS AND THEY’RE ALL GOING TO BE TAXED AT 100%? THAT IS NOT HELPFUL FOR THE INDUSTRY. ED: I MENTIONED IT AT TOP OF THE BLOCK ABOUT ALF BELT AND GOOGLE RIGHTS. IT’S BEEN AN ASTONISHING WEEK ABOUT REVELATION IN THE ANTI TRUST CONTEXT. YOU FOCUSED ON YOUTUBE WHEN WE TALK ABOUT THE STREAMERS, BUT JUST IN THAT ANTI-TRUST CONTEXT, HAVE YOU RECALCULATE, REMODELED THE FUTURE YOU SEE FOR ALPHABET AND IT’S VARIOUS PROPERTIES LARGELY SEARCHED? LAURA: YEAH, WE DO EVALUATION OF YOUTUBE AS A STAND-ALONE ENTITY EVERY SINGLE QUARTER.
THIS COMPANY, IN MY OPINION, IS GOOGLE IS WORTH MORE IN PIECES THAN IT IS TOGETHER. BECAUSE IT’S MY TENNESSEE THAT PEOPLE WITHIN THE ALF BELT HOLDING COMPANY FRAMEWORK GET SUBSIDIZED BY SEARCH. SO THEY ARE NOT REQUIRED TO MAKE MONEY AS THEY’RE THE GENERAL MANAGER. THE BEST THING THAT COULD HAPPEN IS TO SPIN OFF THE AD SERVER AND THE AAP, THE SUPPLY SIDE. -- SSP. IT WOULD ALSO BE GOOD FOR NOT THE GOOGLE PERIMETER THAT STAYED BEHIND BUT THE GOOGLE ASSET, THE MANAGERS THAT HAVE TO COMPETE FOR THE FIRST TIME AND NOT GET THE BENEFIT OF BEING TIED TO STERGER DATA AND YOUTUBE DATA WHICH IS BEST IN CLASS LIKE CONSUMER DATA. AND I THINK THE MORE ALPHABET GETS SMALLER, THE MORE THEY CAN FOCUS ON WHAT MATTERS, WHICH IS SOLVE THE SEARCH PROBLEM NOW THAT A.I.
IS HERE AND MAKING SURE YOUTUBE REMAINS THE NUMBER ONE STREAMER ON EARTH. CAROLINE: LAURA MAR FINGERS ALWAYS GREAT TO WATCH UP TO YOU. HAVE A GREAT WEEKEND. MORE EARNINGS, MORE C.E.O.’S. JASON ROBINS JOINS US TO DISCUSS THE COMPANY AND, WELL, A SLIGHTLY CUT TO ITS GUIDE. THIS IS "BLOOMBERG TECHNOLOGY."
♪ ED: DRAFTKINGS SHARES RISING WITH INVESTORS SLUGGING OFF THE COMPANY’S REDUCED FULL YEAR GUIDANCE AFTER A CUSTOMER FRIENDLY MARCH MADNESS WAIT ON SALES. DRAFTKINGS C.E.O. JASON ROBINS DELIGHTED TO SAY, JOINS US. THERE’S BEEN SOME BACK OF THE NAPKIN MATH AND PEOPLE LOOK AT THE REVENUE FORECAST BEING LOWERED BY ABOUT $200 MILLION, RIGHT IF BEAR WITH ME, JASON IF IS THAT HOW MUCH DRAFTKINGS HAS LOST ON MARCH MADNESS? THE $200 MILLION FIGURE? JASON: NO, WE HAVE A BRIDGE IN OUR EARNINGS MATERIALS. IT WAS A LITTLE BIT LESS. BUT OVERALL, IT’S NOT TOO FAR OFF. CAROLINE: OK. TALK TO US A LITTLE BIT ABOUT TOO FAR AS WELL? WHAT ELSE IS DRIVING PERHAPS AN EXPECTED DOWNGRADE IN FULL YEAR GUIDANCE? ANALYSTS SEEM TO BE TAKING THIS ONE ON THE CHIN AS WELL AS INVESTORS. JASON:
WELL, WE PUT THIS OUT THERE. WE HAD ABOUT 70 MILLION FROM SPORT OUTCOMES AND THEN $30 MILLION CAME FROM JACK POCKET BEING CAUSED TO NOT OPERATING ANYMORE IN TEXAS. BUT THE OVERALL FUNDAMENTALS OF THE BUSINESS WERE ACTUALLY VERY STRONG WE SAW INCREASED HOLD RATE. SOME OF THOSE THINGS OFFSET AS WELL.
SO REALLY THE FUNDAMENTALS OF THE BUSINESS ARE ABOUT AS HEALTHY AS CAN BE. AND I THINK THE REAL QUESTION IS WHEN WILL THESE SPORT OUTCOMES TURN AROUND IN TWO QUARTER NAS ROW NOW? OBVIOUSLY, THAT HAPPENS. AND THAT’S PART THE GREATNESS OF THE PRODUCT IS THAT CUSTOMERS CAN WIN AND THEY CAN GO ON WINNING STREAKS LIKE THIS AND IT MAKES IT A LOT OF FUN, OBVIOUSLY. WE’LL SEE.
IT’S THE FIRST TIME AND SECOND TIME EVER THERE WERE ALL FOUR NUMBER ONE SEEDS IN THE FINAL FOUR AND ALL TWO’S AND ONE THREE SEED IN IN THE ELITE EIGHT. IT WAS MORE LIKELY AN ANOMALY AND NBA PLAYOFFS ALREADY HAD A BUNCH OF UPSETS. SO IT TENDS TO SWING AROUND THE OTHER WAY OVER TIME. CAROLINE: TOO MUCH CONSISTENCY.
WHAT ALSO IS CONSISTENT, JASON, IS A MASSIVE IN YOUR MONTHLY ACTIVITY WHEN YOU TALK ABOUT THE JACKPOT IN PARTICULAR. I’M INTERESTED IN HOW JACK POCKET IS TRANSFERRING TO OTHER SPORTS, CASINO GAMES AND THE LIKES OR ARE PEOPLE STICKING TO THAT LOTTERY APPLICATION? JASON: WELL, THE JACK POCKET IS STILL VERY EARLY IN ITS GROWTH. IT’S STILL QUITE NASCENT. SO WE BELIEVE THERE’S A TON OF UPSIDE FOR THAT BUSINESS AND WE’RE EXCITED ABOUT IT. WE HAVEN’T FULLY INTEGRATED INTO THE DRAFTKINGS APP YET. WE HAVEN’T PUT IT ON OUR PLATFORM YET WHICH SHOULD DRAMATICALLY INCREASE THE CROSS-SENT AND THE MARKETABILITY AND IT’S WELL ABOVE OUR EXPECTATIONS. SO WE THINK THERE’S EVEN MORE
UPSIDE THERE. SO WE’RE PRETTY EXCITED ABOUT IT BUT IT’S STILL SMALL. THE OVERALL IMPACT ON THE BUSINESS ISN’T GREAT YET. BUT HOPEFULLY, THAT CHANGES AS
JACK POCKET CONTINUES TO GROW. ED: JASON, IN YOUR INDUSTRY THERE, ARE BIG, ALMOST LEGACY NAMES, LAS VEGAS SANDS, FOR EXAMPLE, THAT ARE PULLING OUT OF BIDS FOR LAND-BABASED CASINOS. AND COPY WONDER HOW MUCH YOU CAN ASSESS THEIR NERVOUSNESS THAT ONLINE GAMBLING CANNIBALIZES DEMAND FOR LAND BASE AND HOW THAT IMPACTS YOU. JASON: IT’S CERTAINLY A PERCEPTION THAT WE HAVE TO FIGHT BECAUSE IT’S OUT THERE. I DO THINK THAT THE FACTS ARE VERY MIXED ON THAT WHILE THERE’S SOME EXAMPLES YOU CAN POINT TO WHERE THERE ARE DIMINISHING MARKETS WHERE THEY’VE HAD ONLINE GAMING AND WHERE THERE’S DECLINES GOING INTO THAT AND YOU SEE THE OPPOSITE STORY FOR STATE LIKE NEW JERSEY WHERE IT GREW AFTER LEGALIZING ONLINE GAMING. AND IT’S ALSO A DIFFERENT
PROPERTY TO PROPERTY. I DO UNDERSTAND THOUGH WHY IF YOU’RE A COMPANY THAT HAS NO EYE GAMING PLAYER THAT DOESN’T HAVE AN APP OR A WAY TO MAKE MONEY OFF OF IT THAT THIS WOULDN’T BE SEEN AS ANY UPSIDE FOR YOU. SO IF THERE’S NO UPSIDE THERE, CAN OBVIOUSLY BE DOWNSIDE. AND I DO FUN THAT. BUT I THINK THE AMOUNT OF CAN BOLLIZATION IS DOWNSIDED AND WE NEED TO DO A BETTER JOB EDUCATING ON THAT BECAUSE THE NUMBERS DON’T SUPPORT THAT STORY. CAROLINE:
JASON ROBINS, DRAFTKINGS C.E.O. THANKS FOR JOINING US TODAY. WE ARE STICKING WITH SPORTS. WE CAUGHT UP WITH DAVID BECKHAM’S FORMER TEAMMATE . NEVILLE SPOKE ABOUT THE IMPORTANCE OF CONTENT AS WELL AS PITCH PERFORMANCE TO TAKE IT ALL THE WAY TO THE CHAMPIONSHIP LEAGUE IN THE NEXT FIVE YEARS. TAKE A LISTEN. >> YOU REFER TO WREXHAM DID A GREAT JOB THERE OVER THE LAST FEW YEARS BUT WE’VE BEEN INVOLVED IN IT FOR 10 YEARS.
THE FIRST FLY ON THE WALL THAT WAS ON THE BBC AND WE USED TO GET MILLIONS OF PEOPLE WATCHING IT. WE DEFINITELY WANT TO REVISIT THAT SIDE BUT GROW COMMERCIAL REVENUES BUT DOING IT WHERE FOOTBALL IS DEEMED AS A PRIORITY AND, YOU KNOW, THERE’S GREAT EXCITEMENT ON THE GROUND HERE. IT’S A NEW INJECTION OF LIFE INTO IT. CAROLINE: ED? ED: NEXT, META’S FUTURE COULD HINGE ON WHO IS THE SOCIAL MEDIA’S GIANT’S RIVALS MORE ON THE ANTI-TRUST CASE COMING UP. THIS IS "BLOOMBERG TECHNOLOGY."
ED: THE FEDERAL TRADE COMMISSION HAS SPENT THE PAST MONTH PRESENTING EVIDENCE TO SHOW THE SOCIAL MEDIA GIANT META SHOULD BE BROKEN UP. AND TESTIMONY FOR MORE BIG NAMES IS EXPECTED TO THE COMING WEEKS. BLOOMBERG’S RILEY GRIFFIN IS IN D.C. TRACKING WHAT’S GOING ON. WHAT IS THE LATEST BASED ON PEOPLE’S TESTIMONY? IT’S HARD TO SAY WHERE LIKE NET WE STAND RIGHT NOW. RILEY:
WE ARE AT THE MID POINT OF THE TRIAL. WE EXPECT NEXT WEEK FOR META TO BEGIN IN EARNEST ITS DEFENSE BUT WHAT WE SAW YESTERDAY WAS INSTAGRAM CHIEF DEFENDING META AGAINST THE FTC WHICH IS MAKING THE CLAIM THAT META HAS DOMINATED THE FRIENDS AND FAMILY MARKET. THAT MEANS SOCIAL MEDIA THAT IS FOCUSED ON CONNECTING WITH YOUR FRIENDS. IT’S A TOUGH CASE AHEAD BECAUSE AS ADAM LASRY SAID, TIKTOK IS MORE FOCUSED ON ENTERTAINMENT. CAROLINE: THERE’S EVIDENCE THAT WAS SHOWN AT THIS TRIAL THAT YOU’RE NOT ALWAYS BEING RECOMMENDED TO CONNECT WITH YOUR FRIENDS AND YOUR FAMILY AND GROOMERS HAVE SHOWN AND RECOMMENDED CHILDREN TO CONNECT WITH.
THIS IS IN A DOCUMENT THAT META ITSELF HAS DONE AN INVESTIGATION WITH. RILEY: YES, IN 2019, META IDENTIFIED GROOMERS, A TERM USED TO IDENTIFY CHILD PREDATORS WERE BEING USED TO FOLLOW. THEY FOUND THAT 7% -- 27% OF THE FOLLOW SUGGESTIONS MADE TO THIS COHORT OF POTENTIAL CHILD PREDATORS WERE MINORS AND THIS CAME UP FROM THE FTC WHICH WAS TRYING TO DEMONSTRATE THAT META’S ACQUISITION HAS DEGRADED THE QUALITY OF THE APP. CAROLINE: 2019 IS SEVERAL YEARS AGO AND NOW THEY HAVE MADE A LOT OF STEPS IN TERMS OF CHILD PROTECTION AND TEEN SAFETY.
RILEY GRIFFIN, THANK YOU. AND ALL THINGS META. AND LET’S TURN TO THE THINGS THAT’S BEEN GRIP THE TECH WORLD TWO. IT’S THE FINAL DAY IN A TRIAL TO DETERMINE HOW OR IF TO BREAK UP GOOGLE SEARCH MONOPOLY.
JEFF CISCO JOINS US NOW. JUST WRAP IT UP FOR US IN TERMS OF WHERE YOU THINK THE BALANCE LIES NOW. HAVE THEY MANAGED TO SHOW TO THE COURT THAT SEARCHES ARE SO DISRUPTIVE THAT THEY DON’T NEED TO UNWIND SOME OF THEIR PAYMENTS THAT THEY PUT TO APPLE, FOR EXAMPLE.
>> THE JUDGE IS FAIRLY SKEPTICAL OF GOOGLE’S ARGUMENT SO FAR, WHETHER HE WANTS TO GO SO FAR AS TO BREAK UP THE COMPANY AND FORCE THEM TO SELL OFF CHROME. I THINK THAT’S SORT OF UP IN THE AIR. BUT THIS IDEA OF CUTTING OFF THE MONEY FLOW, I MEAN, HE FOUND AS RULING LAST YEAR THAT THE PAYMENTS WERE ANTI-COMPETITIVE. SO IT’S HARD TO IMAGINE THAT HE WOULDN’T WANT TO STOP SORT OF CUT OFF THAT MONEY FLOW AT THE VERY MINIMUM. ED: A LOT OF THE HEADLINES ARE DRIVEN BY PARTNERS AND COMPETITORS TESTIMONY.
WHAT HAS BEEN FOR YOU, THE BIGGEST HEADLINE ABOUT HOW SOME OF THOSE WITNESSES WITH HAVE DESCRIBED THE MARKET AND HOW THEY THINK THIS SHOULD BE RESOLVED? JOSH: SO THERE’S -- THE TRIAL’S BEEN VERY FORWARD LOOKING BECAUSE THE JUSTICE DEPARTMENT WANTS TO SORT OF PREVENT GOOGLE FROM GETTING A MONOPOLY IN THE NEXT ITERATION, THE NEXT GENERATION OF SEARCH WHICH IS GENERATIVE A.I. AND SO, THERE’S BEEN A LOT OF TESTIMONY FROM COMPANIES LIKE OPEN AI AND PERPLEXITY AND APPLE ABOUT HOW THEY WANT TO INCORPORATE THOSE TYPES OF PRODUCTS INTO THE SEARCH -- INTO THEIR BRUCE BROWSERS AND THEIR SEARCH ENGINE AND APPLE BENEFITS IMMENSELY FROM GOOGLE’S PAYMENTS. IT’S SOMETHING LIKE $20 BILLION OR MORE. THEY WERE -- IT WAS VERY INTERESTING TO SEE THEM DOWNPLAY THE IMPORTANCE OF GOOGLE’S LIKE CURRENT SEARCH PRODUCT, THEIR CORE PRODUCT, AND PLAY UP THE FUTURE OF SEARCH BEING A.I., WHICH I DON’T THINK IS WRONG, BUT THEY ALSO HAVE A LOT TO LOSE IF THEY -- IF THOSE PAYMENTS ARE CUT OFF. SO THEY WANT TO MAKE GOOGLE’S CURRENT PRODUCT SEEM LESS IMPORTANT SO THE JUDGE WILL LEAVE IT ALONE. ED: THANK YOU VERY MUCH.
THAT DOES IT FOR THIS THE DECISION OF "BLOOMBERG TECHNOLOGY." CAROLINE: IT DOES. WHAT A WEEK. WHAT A WEEK OF TURBULENCE AROUND TARIFFS. WE HAVE MUCH ANTICIPATE INTO THE CHINESE NEGOTIATION. OVER THE LAST FIVE TRAINING DAYS, BITCOIN UP 7%.
WE ECLIPSED THE 00,000 MARK. IT’S RISK ON THERE. DON’T FORGET TO CHECK OUT OUR
2025-05-11 22:34
