>> THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY" WITH CAROLYN HYDE AND ED LUDLOW. CAROLINE: AND MET BLOOMBERG WORLD HEADQUARTERS IN NEW YORK. WE PUSH AHEAD TO APPLE'S RESULTS AFTER THE BELL AS INVESTORS ANXIOUSLY AWAIT IPHONE SALES NUMBERS. ED: AND WE SIT DOWN WITH THE CEO OF QUALCOMM. CAROLINE: AND THE CFO OF DOORDASH JOINS US TO RUN THROUGH THE COMPANY'S LATEST RESULTS.
THERE IS A WEALTH OF MICRO DATA TODAY THAT WE WILL BE DIGGING INTO, NOT TO MENTION NEW YORK-BASED PELOTON. I AM LOOKING AT A PLOT -- AT A BROAD INDEX. WE ARE SEEING THE NASDAQ UP .7%. WE ARE RELIEVED WE WILL NOT SEE RATE HIKES BUT NO SIGNAL OF RATE CUTS AS WE SEE A RESILIENT U.S. OVERALL JOBS PICTURE WHICH WE GET NO DETAIL OF FRIDAY. YES THERE IS A COOLING, THE SLOWEST INCREASE IN JOBS SINCE NOVEMBER.
WE ARE SEEING A 10 YEAR YIELD DOWN ONE BASIS POINT. WE ANTICIPATE THE JOBS DATA AND THE BLOOMBERG DOLLAR INDEX WEAKER AS WE SEE A BIT OF A RELIEF. DOWN .4%. WHAT IS BITCOIN DURING VERSUS THE U.S. DOLLAR? THEY WERE UP 3%. A RISK ON TRADE TODAY.
WHAT ARE YOU WATCHING ON THIS CORPORATE NEWS FRONT? ED: LET'S START WITH PELOTON. WILD MORNING SESSION. THE CEO WILL STEP DOWN. 50% OF THE GLOBAL HEADCOUNT WILL BE CUT. THINGS ARE NOT GETTING BETTER FOR PELOTON. LOOK AT THE CHART TO ILLUSTRATE THE POINT. WHEN THE MARKET OPENED THERE
WAS A SESSION HIGH OF 18% CURING WHAT IS ANOTHER RESTRUCTURING AND WE ARE NOW DOWN MORE THAN 10%. HAVING HAD TIME TO LOOK AT WHAT PELOTON IS SAYING COMMENT ON THE HARDWARE SIDE OF THEIR BUSINESS MULTI CHANNEL SALES SIDE AND SUBSCRIPTION THINGS WILL NOT BE AS GOOD BY THE END OF THE YEAR AS THEY HAD HOPED AND THE MARKET HAD HOPED. WE WILL GET DEEP ON THAT LATER IN THE SHOW WITH BLOOMBERG'S MARK GURMAN. THAT IS A REAL RIDE. THE EARNING STORY IS ELSEWHERE. QUALCOMM UP ALMOST 10%. THE SMARTPHONE MARKET SEEMS TO BE RECOVERING.
THERE'LL BE A LOT TO TALK ABOUT WITH THE CEO AND ALSO WHAT IS HAPPENING IN CHINA. THEN DOORDASH. THIS IS A TALE AS KNOWN AS THE HISTORY OF GIG ECONOMY COMPANIES. INVESTORS LOOKING AT THE EBITA FORECAST. THE RELATIONSHIP BETWEEN APP -BASED GATE PLATFORMS AND PEOPLE TOP IS SOMETHING WE HAVE TALKED ABOUT A LOT. IT IS THE U.S.'S BIGGEST DELIVERY PLATFORM.
MID-SINGLE DIGIT IN THE SECOND QUARTER. LET'S FIND OUT WHAT IS GOING ON WITH THAT ONE. CAROLINE: WE DID SEE STRONG NUMBERS FOR A FISCAL FIRST QUARTER BUT IT WAS THIS WORRY ABOUT THE FORECAST THAT IS SENDING THE SHARES LOWER. THE DOORDASH CEO IS THE PERFECT
PERSON TO SPEAK ABOUT US. TALK TO US ABOUT WHY THIS RESTRAINED OUTLOOK FOR ADJUSTED EBITA AND THE SECOND QUARTER AND WHY THE RAMP IN THE SECOND HALF? >> GOOD MORNING AND THANKS FOR HAVING ME THIS MORNING. Q1 WAS STRONG FOR US ACROSS THE BOARD. DEMAND FOR THE PLATFORM CONTINUES TO BE VERY STRONG. ALL-TIME HIGH IN TERMS OF USERS
AND SUBSCRIBERS. ALL-TIME HIGH IN TERMS OF ORDER FREQUENCY. IN Q1 WE HAD MORE ORDERS THAN OUR HISTORY. ONE OF THE STRONGEST QUARTERS
SINCE I'VE BEEN HERE THE LAST SIX YEARS. WHEN I LOOK AT THE UNDERLYING DEMAND ON THE PLATFORM IS VERY GOOD. WE ARE NOT SEEING WEAKNESS ON THE CONSUMER SIDE, WHETHER LOW INCOME OR HIGH INCOME OR THE EAST COAST OR THE WEST COAST. ACROSS ALL MARKETS WE OPERATING IN 30 COUNTRIES. WE POSTED THE LOWEST NET LOCKED IN OUR HISTORY WHICH IS MEDIATED BY THE HIGHEST ADJUSTED PEOPLE TOP IN HISTORY. I'M EXCITED BY NOT JUST THE Q1
RESULTS BUT Q2 AS WELL AS THE REST OF 2024. CAROLINE: YOU GET FRUSTRATED WHEN THE SHARES FALL BECAUSE THE MARKET WANTS TO SEE MORE IN TERMS OF PROFITABILITY FOR THE FORECAST? RAVI: OUR GOAL HAS BEEN TO CONTINUE TO BUILD THE BEST PRODUCT POSSIBLE AND YOU ARE SEEING THAT IN OUR RESULTS. USERS HAVE BEEN AN ALL-TIME HIGH. WE ENDED 2023 WITH 37 MILLION CONSUMERS. THAT NUMBER CONTINUES TO GROW
CONSIDERABLY. WE ARE NOT SEEING ANY WEAKNESS OR THE LOCAL MERCHANTS ON THE PLATFORMS. WE ARE SEEING STRONG DOUBLE-DIGIT SAME-STORE SALES ACROSS THE BOARD. OUR GROCERY BUSINESS IS BELOW IT -- IS GROWING AT 100% YEAR ON YEAR. OUR GOAL WILL CONTINUE TO BE TO
BUILD THE BEST PRODUCT POSSIBLE, WHETHER IT IS CONSUMERS, MERCHANTS, OR DASHERS. ED: IF YOU ZERO IN ON THE ADJUSTED EBIT FORECAST THERE IS SOME SENSE YOU ARE INVESTING IN SPECIFIC AREAS AND THAT MIGHT BE IMPACTING THE BOTTOM LINE. YOU ARE INVESTING IN THE TECHNOLOGY LAYER. WHAT IS THE GOAL THERE? RAVI: IN Q1 ONE OF THE CUTE THINGS THAT IMPACTED THE BUSINESS IS WE DID ABSORB SOME COSTS IN NEW YORK AS WELL AS SEATTLE.
THAT COST WILL REDUCE AS WE GO THROUGH THE REST OF THE YEAR AS WE CONSIDER OTHER OPPORTUNITIES TO MAKE THOSE COSTS GO DOWN. IF YOU RECALL OUR BUSINESS, THE RESTAURANT BUSINESS HAS BEEN PROFITABLE FOR MANY YEARS. WE ARE TAKING THE PROFITS FROM THAT BUSINESS AND BUILDING TWO NEW BUSINESSES, GROCERY AS WELL AS INTERNATIONAL. BOTH OF WHICH ARE GROWING EXTREMELY FAST. THEY ARE GROWING FASTER THAN A RESTAURANT BUSINESS. AT THE SAME TIME THE PROFITABILITY OF THE BUSINESSES IS GOING UP.
IF YOU LOOK AT OUR NEW VERTICALS BUSINESS, THE THIRD PARTY HAS BEEN GROSS PROFIT POSITIVE, THE SAME AS THE CASE WITH INTERNATIONAL WHERE MANY COUNTRIES, THE RESTAURANT BUSINESS IS MARGIN POSITIVE. THE RESTAURANT BUSINESS PROFITABILITY IS IMPROVING. ED: REALLY QUICK, YOU MENTIONED SEATTLE AND NEW YORK. THERE ARE IDIOSYNCRATIC FACTORS IN THE QUARTER. EXPLAIN THE BASICS TO AUDIENCES ON WHAT HAPPENED ON THE POLICY FRONT. RAVI: OUR GOAL IS ALWAYS TO WORK WITH POLICYMAKERS AND REGULATORS. WE DO THAT IN HUNDREDS OF
CITIES ACROSS 30 DIFFERENT COUNTRIES TO ENSURE WE ARE PROTECTING THE FLEXIBILITY AND ACCESSIBILITY OF DOCTORS ACROSS THE GLOBE. WE HAVE TAKEN SOME ACTION TO CHANGE THE WAY WE OPERATE WITH MAKING THE BUSINESS MORE EFFICIENT. OUR GOAL IS TO CONTINUE TO WORK WITH POLICYMAKERS IN THAT REGARD. CAROLINE: LET'S GET DETAILS ON OPERATING PROFITS. YOU SAY THEY WILL COME IN THE NEAR FUTURE. THE MARKET EXPECTS THE THIRD QUARTER. ARE THEY RIGHT TO EXPECT THAT?
RAVI: WHAT YOU ARE SEEING IN THE BUSINESS IS THE GROWTH IS STRONG. PROFITABILITY ACROSS ALL LINES OF BUSINESS IS IMPROVING. I EXPECT THE TREND TO CONTINUE. IF THAT TREND CONTINUES ON GROWTH AS WELL AS PROFITABILITY, THE OVERALL BUSINESS WILL BE POSITIVE.
IT IS JUST A QUESTION OF TIME. OUR LOW HAS BEEN VERY STRONG. YOU LOOK AT THE QUARTER, WE GENERATED HALF BILLION. THAT IS OUR START AND BE ABLE TO MAXIMIZE THAT SIDE OF THE BUSINESS. ED:
WHAT ARE THE SPECIFIC CONSUMER HABITS, THE SIZE OF THE BASKET THEY ARE DOING? LOTS OF FREQUENCY LEVEL SPENT. THAT ALL THINGS LIKE THAT. RAVI: WHAT WE ARE SEEING IN THE BUSINESS IS MORE CONSUMERS ORDERING FROM MORE CATEGORIES. HISTORICALLY PEOPLE THOUGHT OF US AS A RESTAURANT DELIVERY PLATFORM. TODAY 20% OF OUR CONSUMERS ARE ORDERING FROM CONVENIENCE GROCERY, ALCOHOL.
WE HAVE INCREASED THE BASKET SIZES. ED: WE HAVE TO GO. THANK YOU. CAROLINE: WE HAVE SOME BREAKING NEWS. LET'S GO TO PRESIDENT BIDEN LEVERING REMARKS. 9 THE FIRST -- PRES. BIDEN: THE FIRST IS THE RIGHT TO FREE SPEECH AND THE RIGHT FOR PEOPLE TO PEACEABLY ASSEMBLE.
THE SECOND IS THE RULE OF LAW. BOTH MUST BE UPHELD. WE ARE NOT BEEN A THOUGHT OR TERRY AND NATION WHERE WE SILENCE PEOPLE -- WE ARE NOT AN AUTHORITARIAN NATION WHERE WE SILENCE PEOPLE OR SQUASH DISSENT. PEACEFUL PROTEST IS AN THE BEST TRADITION OF HOW AMERICANS RESPOND. NEITHER ARE WE A LAWLESS COUNTRY. WE ARE A CIVIL SOCIETY AND
ORDER MUST PREVAIL. WE HAVE OFTEN FACED MOMENTS LIKE THIS BECAUSE WE ARE A BIG, DIVERSE, FREEDOM LOVING NATION. MOMENTS LIKE THIS THERE ARE ALWAYS THOSE WHO RUSH IN TO SCORE POLITICAL POINTS. THIS IS NOT A MOMENT FOR
POLITICS. IT IS A MOMENT FOR CLARITY. LET ME BE CLEAR. PEACEFUL PROTESTS IN AMERICA. VIOLENT PROTESTS ARE NOT PROTECTED. PEACEFUL PROTEST IS. IT IS AGAINST THE LAW WHEN VIOLENCE OCCURS. DESTROYING PROPERTY IS NOT A PEACEFUL PROTEST, IT IS AGAINST THE LAW. VANDALISM, TRESPASSING, BREAKING WINDOWS, FORCING THE
CANCELLATION OF CLASSES AND GRADUATIONS. NONE OF THIS IS A PEACEFUL PROTEST. THREATENING PEOPLE, INTIMIDATING PEOPLE IS NOT PEACEFUL PROTEST. IT IS AGAINST THE LAW. DISSENT IS ESSENTIAL TO DEMOCRACY BUT DISSENT MUST NEVER LEAD TO DISORDER OR DENYING RIGHTS OF OTHERS SO STUDENTS CAN FINISH THE SEMESTER AND THEIR COLLEGE EDUCATION. IT IS A MATTER OF FAIRNESS. IT IS A MATTER OF WHAT IS RIGHT. THERE IS THE RIGHT TO PROTEST
BUT NOT THE RIGHT TO CAUSE CHAOS. PEOPLE HAVE THE RIGHT TO GET AN EDUCATION, THE RIGHT TO GET A DEGREE, THE RIGHT TO WALK ACROSS CAMPUS SAFELY WITHOUT FEAR OF BEING ATTACKED. LET'S BE CLEAR ABOUT THIS. THERE SHOULD BE NO PLACE ON ANY CAMPUS, NO PLACE IN AMERICA FOR ANTI-SEMITISM OR THREATS OF VIOLENCE AGAINST JEWISH STUDENTS. THERE IS NO PLACE FOR HATE SPEECH OR VIOLENCE OF ANY KIND, WHETHER IT IS ANTI-SEMITISM, ISLAMOPHOBIA, OR DISCRIMINATION AGAINST ARAB-AMERICANS OR PALESTINIAN AMERICANS.
IT IS SIMPLY WRONG. THERE IS NO PLACE FOR RACISM IN AMERICA. IT IS ALL WRONG. I UNDERSTAND PEOPLE HAVE STRONG FEELINGS AND DEEP CONVICTIONS. IN AMERICA WE RESPECT THE RIGHTS AND PROTECT THE RIGHT FOR THEM TO EXPRESS THAT. IT DOES NOT MEAN ANYTHING GOES. IT NEEDS TO BE DONE WITHOUT VIOLENCE, WITHOUT DESTRUCTION WITHOUT HATE, AND WITHIN THE LAW . MAKE NO MISTAKE. AS PRESIDENT I WILL ALWAYS
DEFEND FREE SPEECH AND I WILL ALWAYS BE JUST AS STRONG STANDING UP FOR THE RULE OF LAW. THAT IS MY RESPONSIBILITY TO THE AMERICAN PEOPLE AND MY OBLIGATION TO THE CONSTITUTION. THANK YOU VERY MUCH. >> HAVE THE PROTESTS FORCED YOU TO RECONSIDER ANY OF THE POLICIES IN THE REGION? PRES. BIDEN: NO.
>> YOU THINK THE NATIONAL GUARD SHOULD INTERVENE? PRES. BIDEN: NO. CAROLINE: PRESIDENT BIDEN DELIVERING REMARKS AT THE WHITE HOUSE REGARDING STUDENT PROTEST. LET'S BRING IN KAILEY LEINZ FOR MORE. AGAINST VIOLENCE AND DESTRUCTION BUT FOR PEACEFUL PROTEST. KAILEY:
THE PRESIDENT MAKING IT CLEAR HE DOES STAND AMERICANS RIGHT TO FREE SPEECH, BUT ESSENTIALLY THAT IT SHOULD BE DONE PEACEFULLY. THE PRESIDENT MAKING REMARKS IN THE ROOSEVELT ROOM SAYING DISSENT MUST NEVER READ TO DISORDER OR THE DENIAL OF RIGHTS AND THE RIGHT TO PROTEST IS NOT MEAN THE RIGHT TO CAUSE CHAOS, GOING ON TO SAY THERE IS NO PLACE FOR ANTI-SEMITISM IN AMERICA. HE MAKES THE REMARKS AS HE IS FACING GROWING PRESSURE TO ADDRESS WHAT WE ARE SEEING HAPPENING FROM COLUMBIA UNIVERSITY TO THE WEST COAST WITH WHAT WE HAVE SEEN AT UCLA. ALL OF IT SPEAKING TO THE PRESSURE HE IS UNDER AS HE IS TRYING TO STAND BY ISRAEL AS AN ALLY BUT THERE IS GROWING CONCERN ABOUT THE WAY ISRAEL IS CONDUCTING ITSELF AGAINST HAMAS IN GAZA. WE HEARD THE PRESIDENT BEING
ASKED BY A REPORTER WHETHER THIS HAS MADE HIM RETHINK HIS POLICY ON ISRAEL. HE SAID NO. HE ALSO SAID NO ABOUT WHETHER THE NATIONAL GUARD SHOULD BE INTERFERING IN THESE INSTANCES ON COLLEGE CAMPUSES. I WOULD ALSO POINT OUT WE WILL BE HEARING FROM PRESIDENT BIDEN ON THE ISSUE OF ANTI-SEMITISM AGAIN NEXT WEEK ON TUESDAY, MAY 7.
HE IS PLANNING TO SPEAK AT THE CAPITAL AS PART OF THE NATIONAL HOLOCAUST REMEMBRANCE ADDRESS CEREMONY THAT WILL BE HAPPENING ON THAT DATE. WE HEARD FROM THE WHITE HOUSE PRESS SECRETARY YESTERDAY WHO SAID THE PRESIDENT WILL DISCUSS THE MORAL DUTY TO COMBAT THE RISING SCOURGE OF ANTI-SEMITISM IN THE ADMINISTRATION'S WORK ON THAT ISSUE. WE PROBABLY GOT A PREVIEW OF SOME OF WHAT HE WILL SAY WHEN WE HEARD HIM SPEAK TODAY. ED: BLOOMBERG'S KAILEY LEINZ, THANK YOU FOR THE CONTEXT. WE HAVE BEEN TALKING ABOUT
PROTESTS AT DIFFERENT UNIVERSITY CAMPUSES ACROSS THE COUNTRY AND ACROSS THE WORLD FOR SEVERAL DAYS NOW. WHAT WAS THE POLITICS OF THIS WITH THE PRESIDENT? WHAT WAS THE PRESSURE ON THE HILL IN THE CONVERSATION ABOUT WHETHER OR NOT BIDEN WOULD SAY ANYTHING AND THE TIMING OF IT? KAILEY: WE HAD HEARD PRESIDENT BIDEN SPEAK ON THIS BEFORE, SAYING HE CONDEMNS ANTI-SEMITISM , ALTHOUGH HE ALSO SUGGESTED PEOPLE NEED TO UNDERSTAND WHAT IS GOING ON WITH THE PALESTINIAN PEOPLE. CERTAINLY THE DOMESTIC POLITICAL PRESSURE HAS BEEN GROWING. WE HAVE SEEN REPUBLICAN MEMBERS
OF CONGRESS TAKING HOLD OF THIS ISSUE. WE HAVE SEEN MIKE JOHNSON TOGETHER WITH OTHER REPUBLICAN MEMBERS OF THE NEW YORK DELEGATION GOING TO THE CAMPUS OF COLUMBIA UNIVERSITY JUST LAST WEEK. JUST LAST NIGHT THE HOUSE PASSED A BILL THAT WOULD ESSENTIALLY HELP THE DEFINITION OF ANTI-SEMITISM BE APPLIED DIFFERENTLY WITH THE DEPARTMENT OF EDUCATION. THERE WAS SOME CONCERN THAT WOULD BECOME A FREE SPEECH ISSUE AND WOULD LIMIT CRITICISM OF ISRAEL OR THE ISRAELI GOVERNMENT.
IT STILL GOT THROUGH WITH A BIPARTISAN MAJORITY. IT IS UNCLEAR WHETHER THAT WILL MOVE FORWARD IN THE SENATE BUT YOU ARE SEEING EFFORTS TO COMBAT ANTI-SEMITISM. A LOT OF BLAME BEING CAST ON PRESIDENT BIDEN, WHETHER RIGHTLY OR NOT FOR WHAT WE ARE SEEING ON COLLEGE CAMPUSES, AND HE HAS BEEN DEALING WITH APPLICABLE RAMIFICATIONS OF HIS WIDER POLICY TOWARDS ISRAEL THROUGHOUT THIS PRIMARY SEASON AS WE HAVE SEEN DEMOCRATIC PRIMARY VOTERS VOTING AGAINST ALTERNATIVES, WHETHER IT BE UNCOMMITTED OR SOMETHING TO THE EFFECT IN DIFFERENT STATES LIKE MICHIGAN AND OTHERS TO EXPRESS THEIR DISCONTENT WITHOUT THE PRESIDENT HAS BEEN HANDLING HIS ISRAELI POLICY. CAROLINE: TALKING OF ISRAELI POLICY, BREAKING NEWS THAT TURKEY HAS HALTED ALL TRADE WITH ISRAEL, THAT IS BOTH EXPORTS AND IMPORTS TO AND FROM ISRAEL AS OF THURSDAY ACCORDING TO TURKISH OFFICIALS FAMILIAR WITH THE MATTER. KAILEY LEINZ BRINGING US THE LATEST FROM WHAT THE PRESIDENT HAS BEEN SAYING.
WE WANT TO RETURN OUR ATTENTION TO WHAT IS IN INVESTORS FOCUS RIGHT NOW. WE ARE STILL AMID EARNINGS SEASON. TODAY IS APPLE REPORTING QUARTERLY RESULTS AFTER THE MARKET CLOSED LATER TODAY, GIVING INVESTORS A BETTER SENSE OF HOW THE IPHONE MAKER IS WEATHERING THE SALES SLUMP.
WE ALSO HAVE TO BE TALKING ABOUT ONE ON EARTH IS HAVING A PELOTON. BLOOMBERG'S MARK GURMAN FOR MORE ON WHAT TO EXPECT. LET'S KICK OFF WITH APPLE BECAUSE IT IS THE HUGE COMPANY MANY FOCUS ON. WHAT ARE WE LINING UP FOR? MARK: THE EXPECTATION FOR THE FIFTH TIME IN SIX CORNERS APPLE WILL REPORT AN ANNUAL DECLINE.
REVENUE IS EXPECTED TO COME IN AT ABOUT $90 BILLION, WHICH WOULD BE A $5 BILLION TIP ON YEAR-OVER-YEAR. THE OTHER THING THAT IS NOT SO HOT, ALL OF APPLE'S PRODUCT CATEGORIES, HARDWARE CATEGORIES FROM THE IPHONE TO THE IPAD, THE MAC, WEARABLES, THOSE ARE EXPECTED TO DECLINE ON AN ANNUAL BASIS. THE ONLY BRIGHT SPOT BEING SIGNIFICANT GROWTH IN THE SERVICES BUSINESS. ANOTHER DECLINE IN GREATER CHINA ON THE HEELS OF REPORTS FROM COUNTERPOINT AND OTHERS THAT IPHONE SALES IN CHINA DIPPED ABOUT 1/5 DESPITE THE SMARTPHONE MARKET GOING UP IN GENERAL. $90 BILLION IN REVENUE IS A BIG NUMBER, THAT IS AMAZING FOR MOST COMPANIES. FOR APPLE WALL STREET WOULD HAVE LIKED A BIT MORE.
ED: HARDWARE AND SERVICES IS A WILD STORY WHEN IT COMES TO PELOTON. LET'S SHOW THE TWO DAY CHART. OPENED AS HIGH AS 18% AND IS NOW DOWN MORE THAN 10% STOP NO SIGN THAT PELOTON HAS A STRATEGY TO GET ITSELF OUT OF TROUBLE. GIVE ME THE DETAILS. MARK: I DO NOT THINK PEOPLE REALIZE HOW CLOSE PELOTON IS TO BANKRUPTCY. THEY WILL BE LUCKY TO REMAIN ON THE STOCK MARKET MUCH LONGER.
I AM SHOCKED MARY MCCARTHY STUCK AROUND SO LONG. THERE IS NOTHING HE DID NOT DO. HE HAS LAID OFF SEVERAL THOUSAND PEOPLE AND MOVE FROM THE HARDWARE FOCUS TO A CONTENT AND SUBSCRIPTION FOCUS, RESTRUCTURED THE COMPANY MULTIPLE TIMES, HIRE NEW EXECUTIVES TO RIGHT THE SHIP, OUTSOURCED EVERYTHING YOU CAN OUTSOURCE, FROM INSTALLATION TO SHIPPING TO MANUFACTURING, AND HERE WE ARE, MISSING WALL STREET EXPECTATIONS, MISSING INTERNAL FORECASTS, DIFFERENT PELOTON APPLIANCES. THE PREMIUM APP FALLING FLAT ON ITS PLACE -- ON ITS FACE. THE MARKETING CHIEF CONTINUING TO LEAVE.
PELOTON IN THE WORST SHAPE IT HAS EVER BEEN IN THEY HAVE NO CEO RUNNING THE COMPANY. CAROLINE: LOOKING -- ED: THE STOCK IS AT A RECORD LOW. THEY ENDED THE QUARTER WITH $700 MILLION OF CASH AND THEY DID SAY BECAUSE OF THE HEADCOUNT REDUCTION THEY WILL SAVE ABOUT $200 MILLION A YEAR IN CASH FLOW POSITIVITY IS POSSIBLE BY THE FOURTH QUARTER BUT AS YOU OUTLINED THE SITUATION WITH PELOTON, WHICH IS A COMPANY WAY OFF ITS PANDEMIC ERA HIGH IS PRETTY BLEAK. BLOOMBERG'S MARK GURMAN. STAY TUNED FOR HIS REPORTING ON
APPLE. COMING UP, CHIPMAKER QUALCOMM OUT WITH EARNINGS. THERE IS A LOT OF TALK ABOUT WITH THE CEO CRISTIANO AMON. THAT CONVERSATION IS COMING UP.
THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: TIME FOR TALKING TECH. VIDEOGAME PUBLISHER TAKE TWO INTERACTIVE PLANS TO SHUT DOWN TWO SUBSIDIARIES AS PART OF A SHUT DOWN IN LONDON IN SEND THE ADULT -- IN LONDON AND SEATTLE. LAST MONTH TAKE-TWO SAID IT WOULD LAY OFF 5% OF ITS STAFF. LET'S TAKE A LOOK AT STARLINK AS IT IS STILL OPERATING IN MULTIPLE UNAUTHORIZED REGIONS AFTER IT SAID IT SATELLITE INTERNET WOULD BE SHUT DOWN BY MAY 1 IN THOSE AREAS. THESE NOTICES AFTER A MARCH INVESTIGATION BY BLOOMBERG NEWS WHICH FIRST REVEALED THE EXTENT TO WHICH ELON MUSK SATELLITES ARE BEING USED IN COUNTRIES WHERE IT IS ILLEGAL TO OPERATE, INCLUDING IN TERRITORIES RULED BY REPRESSIVE REGIMES.
REGULATORS MOVE TO BAR A HUAWEI LAB FROM APPROVING TELECOM GEAR FOR USE IN THE UNITED STATES. IT IS PROPOSED SIMILAR MOVES AGAINST OTHER PROVIDERS DEEMED A NATIONAL SECURITY THREAT. THE SEC SAYS THIS WILL ENSURE NONGOVERNMENT LABS ARE NOT "INFLUENCED BY UNTRUSTWORTHY ACTORS." ED: THIS IS ANOTHER BIG BLOOMBERG STORY. CHINESE TELECOMMUNICATION GIANT WHILE WEIGHT IS SECRETLY FUNDING CUTTING-EDGE UNIVERSITIES -- CUTTING-EDGE RESEARCH AT AMERICAN UNIVERSITIES THROUGH AN INDEPENDENT WASHINGTON-BASED FOUNDATION.
HERE IS BLOOMBERG'S KATO KEITH. AT THE HEART OF THIS REPORTING IS YOU FOLLOWING THE MONEY. WHAT DID FOLLOWING THE MONEY TELL YOU? KATE: WHAT WE SAW IS OVER THE PAST FEW YEARS HUAWEI HAS FUNDED HUNDREDS OF RESEARCHERS AND SPENT MILLIONS OF DOLLARS AND IT WAS ALL WITHOUT THEIR KNOWLEDGE. THEY THOUGHT THEY WERE BEING FUNDED BY A FOUNDATION BASED IN WASHINGTON, D.C. CAROLINE: COMPETITION ADMINISTERED BY OPTICA AND YOU SAID THERE ARE 11 OPPORTUNITIES FOR GRANTS ON THE WEBSITE TO HAVE CAREER PRIZES AND FELLOWSHIPS. ALL THAT THE HUAWEI FUNDED
COMPETITION ARE CLEAR ABOUT WHICH BACKERS ARE PROVIDING THE MONEY. WHAT DID THE OPTICA FOUNDATION SAY FOR ITS QUIETNESS ON HUAWEI'S MONEY? KATE: THE OTHER 10 OPPORTUNITIES MADE CLEAR THEY WERE FUNDED BY AN INDIVIDUAL OR A COMPANY OR SOME COMBINATION. THE HUAWEI FUNDED PRIZE APPEARED TO BE FUNDED BY THE FOUNDATION'S GENERAL FUND. THE RESPONSE FROM OPTICA CEO WAS THERE IS A LOT OF DONORS WHO WANT TO REMAIN ANONYMOUS INCLUDING U.S. DONORS AND EFFECTIVELY THERE IS NO ISSUE WITH IT. ED: THERE IS EXAMPLES IN OTHER JURISDICTIONS OF HUAWEI BEING A BIT MORE PUBLIC, HAVING INITIATIVES TO MAKE INROADS IN THOSE MARKETS. PARTICULARLY IN EUROPE.
EXPLAIN WHAT YOU LEARNED THERE. KATE: THAT'S RIGHT. IN COUNTRIES LIKE FRANCE AND GERMANY HUAWEI IS OPENLY FUNDING RESEARCH CENTERS. IN THE U.S. IT IS A DIFFERENT STORY BECAUSE SEVERAL YEARS AGO THE U.S.
GOVERNMENT MOVED ON MULTIPLE FRONTS TO RESTRICT HUAWEI. ONE OF THE MAJOR RESTRICTIONS THAT HAVE BEEN IN PLACE OUR EXPORT CONTROLS AND THAT BLOCKS PEOPLE AND COMPANIES FROM SHARING TECH WITH HUAWEI. WHAT IS INTERESTING ABOUT THIS COMPETITION IS IT FALLS THROUGH THE CRACKS OF ALL OF THESE DIFFERENT REGULATIONS BECAUSE IT DEALS WITH ACADEMIC RESEARCH, WHICH IS FOR THE MOST PART MEANT TO BE PUBLISHED AND THEREFORE IT IS NOT SUBJECT TO THE CURRENT EXPORT CONTROLS WE HAVE IN THE U.S.. CAROLINE: NEVERTHELESS, AND AS A GREAT
QUOTE IN YOUR PIECE SAYS, IT IS A BAD LOOK FOR A PRESTIGIOUS RESEARCH FOUNDATION TO BE ANONYMOUSLY ACCEPTING MONEY FROM A CHINESE COMPANY. ULTIMATELY THIS IS ABOUT THE FEEL OF IT RATHER THAN THE LETTER OF THE LAW. CAROLINE: THERE IS NOTHING ILLEGAL ABOUT THIS AS FAR AS I COULD TELL IN MY REPORTING. IT DOES PUT UNIVERSITIES WHO ACCEPT THE MONEY ON BEHALF OF THESE RESEARCHERS AS WELL AS THE RESEARCHERS THEMSELVES IN AN UNCOMFORTABLE POSITION. A LOT OF THE UNIVERSITIES HAVE DECIDED INDEPENDENTLY THAT THEY DO NOT WANT TO WORK WITH HUAWEI ANYMORE.
SOME OF THEM HAVE MADE PUBLIC STATEMENTS ABOUT THAT. THEY ARE IN THIS WEIRD SPOT WHERE SOME OF THE RESEARCHERS HAVE GOTTEN MONEY ALREADY TO DO SCIENCE, BUT THEY DID NOT KNOW WHO WAS FINDING IT. MAYBE -- WHO WAS FUNDING IT. MAYBE SOMETHING DIFFERENT WOULD'VE HAPPENED HAD THEY KNOWN THAT YOU SOURCE OF FUNDING. CAROLINE: KATE O'KEEFE, WE SO APPRECIATE YOU JOINING THE SHOW. COMING UP, CHIPMAKER QUALCOMM OUT WITH EARNINGS.
WE WILL SIT DOWN WITH THE CEO CRISTIANO AMONG. HE DID NOT WANT TO MISS THAT CONVERSATION. >> WELCOME TO OUR BLOOMBERG RADIO AUDIENCES WHAT COLE COMSTOCK SIGNIFICANT HIGHER. THINGS LOOK THEY ARE THAT SHOULD LOOK LIKE THEY ARE IMPROVING IN THE SMARTPHONE MARKET GLOBALLY AND WITHIN THAT THERE IS A LOT OF NUANCE. SPECIFIC ACTION IN CHINA AND STRENGTH ALSO FOR THE CHIPS THAT GO INTO CARS IN THE AUTOMOTIVE SECTOR.
DELAY TO SAY THAT QUALCOMM'S CEO JOINS US NOW. GOOD MORNING TO YOU. LET'S START WITH CHINA. WHEN YOU GUYS SAID IS THAT SALES TO CHINESE HANDSET MAKERS SURGED 40% IN THE FIRST HALF, I WONDER WHAT THE STORY BEHIND THAT IS IN THE END MARKET. WHAT IS HAPPENING PARTICULARLY WITH ANDROID-BASED PLATFORMS THE CHINESE CONSUMER? >> GOOD MORNING TO U.S. WELL. A GREAT MORNING TODAY. THE STORY ON HANDSETS IN CHINA IS PRETTY SIMPLE. WE'VE SEEN THE MARKET STABILIZED.
WE SAID THAT A COUPLE QUARTERS AGO. AND USERS ARE BUYING BETTER PHONES. IT IS REALLY FOR US A STORY OF IDEAS WITHIN THE ANDROID, ESPECIALLY A LOT OF THOSE FLAGSHIPS LAUNCHING WITH GENAI. I THINK WE SEE THE VERY BEGINNING OF GENAI COMING TO DEVICES AND THAT DROVE A LOT OF THE GROWTH. IT IS 40% NOT ONLY IN THIS QUARTER BUT EXPECTED TO HAVE THE SAME INTO NEXT. AS WE LOOK AT THE GUIDE HE HAS
BEEN A GOOD STORY AT THE SMARTPHONE MARKET STABILIZED. FLAGSHIP HAS STAYED RESILIENT. >> AS YOU KNOW AND THE AUDIENCE KNOWS, WE WILL TALK ABOUT GENERATIVE AI. WITH LINGERING MOMENT LEN -- LONGER ON CHINA. IT LOOKS LIKE SOME OF THE NESTING PLAYERS ARE GAINING MARKET SHARE. YOU SEE THAT IN THE COUNTERPOINT RESEARCH DATA.
IF THAT IS THE CASE, WHETHER DOMESTIC PLAYERS ARE GAINING THAT MARKET SHARE, WHAT DOES IT MEAN FOR QUALCOMM? >> THE WAY YOU SHOULD THINK ABOUT OUR POSITION IN CHINA, WE HAVE BEEN VERY FOCUSED ON PREMIUM AND HIGH TIER WITH SNAPDRAGON. SO WHEN AN OEM FROM OUR CUSTOMERS SHOWS ME OPAL ONE PLUS, WHEN THEY ARE SELLING A FLAGSHIP DEVICE, I HAVE A LOT OF CONTENT NOT ONLY THE MODEM CONTENT A LOT OF THE APPLICATION PROCESSOR, THE AI ENGINE. THAT HAS BEEN A COST OF DEVELOPMENT AND THAT IS WHAT HAS BEEN DRIVING THE CONTENT INCREASE IN THE ASP INCREASE ESPECIALLY WHEN THE KNICKS CHANGES TO A PREMIUM DEVICE. THE FACT THAT HE ENJOYED FLAGSHIP IN CHINA IF THE CHINESE OEMS HAD BEEN STABLE, PROVEN TO BE RESILIENT AND SEE POSITIVE MOMENTUM AS THE RICH GET RICHER, CHINESE USERS ARE BUYING A BETTER PHONE, THAT IS A GOOD STORY FOR QUALCOMM AND IS REFLECTED IN THE NUMBERS.
>> IS THERE ANY ANXIETY FROM A GEOPOLITICAL PERSPECTIVE? YOU'VE OBVIOUSLY WHETHER THE FACT THAT WERE ONLY IN FOR CHIEF OWENS NOW, SEEING ULTIMATELY REVENUE PULL AWAY BY THE END OF THIS YEAR FOR HUAWEI. BUT THE GEOPOLITICAL CONTEXT, HOW DIFFICULT IS IT SOUPY -- TO BE SO DEPENDENT ON CHINA? >> THE FIRST THING I WANT TO SAY IS OUR BUSINESS NOT JUST CHINA. WHAT WILL HAPPEN WITH THE SMARTPHONE IS A PHENOMENON GLOBALLY. YOU EVEN SAW SAMSUNG WHEN THEY
TALK ABOUT THE EARNINGS CALL, THEY HAVE A COMMENTARY ABOUT THE DEVICE AI OPPORTUNITY FOR LIKE CHIPS. IT'S REAL. THE SECOND PART OF THE WE THINK ABOUT EVERYTHING IS IF YOU HAVE A LEADERSHIP POSITION IN TECHNOLOGY, YOU ARE GOING TO HAVE A BIG BUSINESS IN CHINA. IT IS JUST A FUNCTION OF THE SIZE OF THE MARKET. THAT HAS BEEN TRUE NOT ONLY FOR QUALCOMM BUT FOR A NUMBER OF OTHER COMPANIES. TO THIS POINT, I THINK WE SPIN SEEING OUR BUSINESS IN CHINA CONTINUE TO BE A STABLE BUSINESS.
WE'VE NOT BEEN RESTRICTED BUT LIKE EVERYBODY ELSE IN THE INDUSTRY WE HAVE TO MONITOR THE SITUATION. WE HAVE TO NAVIGATE IN THE SEMICONDUCTOR INDUSTRY BUT WE ARE HAPPY WITH THE RESULTS WE HAVE RIGHT NOW. >> LET'S GO TO THE TECHNOLOGY THAT IS WINNING OUT. YOU TALK ABOUT AI ON DEVICE. HOW ARE PEOPLE USING IT?
THAT IS REALLY MEANT TO BE SUPPORTING GENERATIVE AI AT THE MOMENT. BASICALLY WITH A PERSONAL ASSISTANT POTENTIALLY, BUT HOW IS THAT A REALITY FOR ANY OR MANY? >> I LOVE TALKING ABOUT THIS AND THEY WISH HE HAD A LOT OF TIME SO I'M GOING TO TRY TO SUMMARIZE IT IN A A FEW MINUTES. THE FIRST THING THAT IS HAPPENING, YOU NEED TO THINK ABOUT WHAT IS HAPPENING ON THE CLOUD AND ON THE DEVICE AS A NEW WAY OF DOING COMPUTING. WE ARE JUST AT THE VERY BEGINNING OF THE USE CASES. WE CAN SEE MULTIPLE TENS OF USE CASES, AND I EXPECT THAT WITHIN SIX MONTHS FROM NOW WILL BE HUNDREDS IF NOT MORE. WHAT ARE PEOPLE DOING WITH IT?
YOU SEE SOME CASES TRANSLATED, YOU CAN WATCH A VIDEO, YOU CAN ADD A SUBTITLE IN ANY LANGUAGE ON. YOU CAN DO A LOT OF REAL-TIME PHOTO EDITING. YOU CAN CHANGE A LOT OF THE IMAGES THE WAY YOU LIKE IT, YOU CAN CREATE NEW IMAGES. YOU CAN SUMMARIZE DOCUMENTS. BUT THE MOST IMPORTANT THING IS THE OTHER THING IT IS GOING TO PHONES. I'M GOING TO POINT TO AN EXAMPLE. YOU DO MORE THINGS ON THE PHONE TODAY, BUT THEY ARE THINGS YOU ARE GOING TO THINK ABOUT. I HAVE TO RESPOND TO THIS VERY LONG EMAIL. I'D RATHER WAIT UNTIL I GET TO
MY LAPTOP. WHEN YOU THINK ABOUT A MICROSOFT COPILOT AND THE PHONE, YOU'RE GOING TO SEE A LOT MORE USE OF THOSE DEVICES. MUCH MORE PRODUCTIVITY. IT IS GOING TO TAKE SOME TIME. USE CASES ARE DEVELOPING. IN THE BEGINNING, THERE'S JUST A FEW APPS IN THE APP STORE. BUT THEN ALL OF A SUDDEN, THE APPS START TO DEFINE THE USER EXPERIENCE. THAT IS HOW WE FEEL ABOUT AI,
WHERE AT THE BEGINNING IS GOING TO THINK A LITTLE BIT OF TIME, BUT THE SIGNS ARE GREAT. >> WE ARE SPEAKING TO THE QUALCOMM CEO, AND I THINK YOU SUMMED IT UP WELL. WE ARE IN THE VERY EARLY STAGES OF THE WORLD WHERE WE ARE RUNNING 10 BILLION PARAMETER MODELS LOCALLY ON A DEVICE ON THE SMARTPHONE SIDE. BUT WE ARE ALREADY TALKING ABOUT THE AI PC. IT IS VERY IMPRESSIVE.
I STILL THINK A LOT OF PEOPLE STRUGGLE TO SAY WHAT AM I GOING TO DO SITTING IN A CAFE RUNNING A 10 BILLION PARAMETER MODEL WHILE I HAVE A CAPPUCCINO? WHAT IS THE ACTUAL REAL-WORLD USE CASE? >> WE COULD NOT BE MORE EXCITED ABOUT WHAT IS HAPPENING. I REALLY THINK VC IS REBORN WITH THE SNAPDRAGON ELITE. AND IT IS NOT ONLY BECAUSE OF THE PERFORMANCE, BECAUSE BY THE WAY, WE CAN RUN 20 BILLION PARAMETER. THIS IS EVOLVING VERY, VERY FAST. BUT THE USE CASE ARE REALLY INCREDIBLE. THINK ABOUT THIS AI RUNNING ALL THE TIME. EVERYTHING YOU ARE DOING IS
RUNNING AND THAT IS PRIVATE. IT IS YOUR DATA, YOUR USE. WE ARE STARTING TO SEE THAT YOU CAN USE THE COPILOT FOR EVERYTHING, FOR POWERPOINT, FOR EXCEL. THE AI IS HELPING YOU RECALL DOCUMENTS THAT YOU HAVE THAT YOU SEE WHERE YOU HAVE ON YOUR COMPUTER, IT'S GOING TO HELP YOU THAT IS GOING TO CHANGE, AND THE INTERESTING THING IS HOW DO YOU DO THIS IN A WAY THAT YOU DON'T COMPROMISE BATTERY LIFE? A CPU AND A CHEAP YOU HAVE A JOB TO DO. BUT YOU NEED A WHOLE NEW ENGINE THAT NEEDS TO DO SOMETHING ELSE, NEEDS TO DO IT ALL THE TIME IT NOT COMPROMISE BATTERY LIFE THAT IS THE QUALCOMM STORY.
>> AND WHAT IS THE MARKET SHARE STORY OF QUALCOMM? WE'VE BEEN HEARING A LOT ABOUT OTHER COMPETITORS GETTING INTO THE SPACE. >> I THINK THIS IS THE GREAT STORY FOR QUALCOMM BECAUSE WE ARE NEW, JUST ENTERING THE MARKET. WE ARE GOING TO SEE A LOT OF THE DEVICES COMING UP IN THE SECOND HALF OF THIS YEAR. I ENCOURAGE EVERYBODY TO WATCH THE MICROSOFT FAILED AN INCREDIBLE THING IF THEY ARE DOING WITH NEW WINDOWS, AND I THINK WHAT IS GOING TO HAPPEN IS QUALCOMM IS COMING IN WITH THE LEADERSHIP PRODUCT. FINANCIALLY, THAT'S GOING TO BE MORE OF A FISCAL 2025 EVENT BECAUSE A LOT THE LAPTOPS ARE GOING TO BE ON THE SHELVES FOR THE SECOND HALF OF FACT SCHOOL, BUT THE PRODUCT MOMENTUM IS GREAT.
AND HERE'S HOW WE SHOULD THINK ABOUT FALL, MARKET SHARE IN GENERAL. EVERYTHING THAT WE SET OURSELVES TO DO, THE TRACK RECORD IS ACTUALLY NOT BAD. AUTOMOTIVE WE SAID WE ARE GOING TO GO TO AUTOMOTIVE.
WE SAID WE ARE GOING TO ENTER THE METAVERSE, WE HAVE EVERY SINGLE DESIGN. NOW WE STARTED OUT THE GATE WITH THE LEADERSHIP IN THE PRODUCT. AS WE CONTINUE TO EXECUTE, TIME IS GOING TO SHOW THAT WE CAN GAIN SHARE AND CAN BE A SIGNIFICANT PLAYER. AFTER THAT IT'S GOING TO BE INDUSTRIAL AS WE CONTINUE TO EXECUTE ON THE GROWTH AND DIVERSIFICATION OF THE COMPANY. >> WE THANK YOU FOR BRINGING THE ENERGY TODAY.
>> THANK YOU GREAT TALKING TO BOTH OF YOU. >> WHAT HAVE WE GOT COMING UP? ED: LET'S CHECK IN ON THE MARKETS. QUALCOMM STOCK OF 10% ON TRACK FOR ITS BIGGEST DUMP SINCE NOVEMBER 2021. THAT IS BOOSTING THE STOCKS. NVIDIA ALSO PUSHING HIGHER, THE NAMES INTERVENING AT THE INDEX LEVEL.
APPLE, THAT IS THE BIG ONE. AFTERMARKET EARNINGS. AGAIN, PARTICULAR FOCUS ON CHINA. BEARING WHAT WE JUST HEARD ABOUT THE DOMESTIC HANDSET MAKERS GAINING MARKET SHARE, THAT IS PROBABLY WHERE THE FOCUS WILL BE. THEN I WILL THROW IN BITCOIN, BECAUSE WHY NOT? IT TRADES 24-7. IT'S LIKE TRYING TO KEEP TRACK
OF A WATERFALL IF YOU KNOW WHAT I MEAN. THAT IS THE MARKET PICTURE FOR YOU RIGHT NOW AND THEN A LOT OF FED SPEAK THROWN IN BETWEEN. >> MEANWHILE, WERE GOING TO GIVE YOU SORT OF A BROAD PERSPECTIVE OF THE U.S. IPO WINDOW AT THE MOMENT. A LITTLE BIT MORE MACRO IN OUR VENTURE CAPITAL. THAT IS NEXT. THIS IS BLOOMBERG TECHNOLOGY.
>> LET'S GET SOME NEWS IN THE WORLD OF PRIVATE MARKETS. BLOOD CHEST THING -- BLOOD TESTING COMPANY KARIUS LED BY EXISTING VENTURES ALONGSIDE 5:00 A.M. VENTURES AND GLIDE HEALTH CARE. THE COMPANY DECLINED TO GIVE ITS VALUATION BUT SAYS PEOPLE USE THE CASH TO GET ITS TECHNOLOGY FOR DETECTING HARD TO IDENTIFY INFECTIONS INTO MORE HOSPITALS. WITH STICK WITH ALL THINGS PRIVATE VENTURE IN STARTUPS. BRINGING IN GENERAL PARTNER MAX GAZA ON TODAY'S SPOTLIGHT. PRISONER EXTRAORDINAIRE MARGUERITE HAS BEEN CRUNCHING THE NUMBERS ON IPO ACTIVITY. WE DON'T REALLY NEED TO CRUNCH
THE NUMBERS BECAUSE WE'VE BEEN QUITE BUSY OF LATE. WE HAD A POCKET IN SEPTEMBER. YOUR FIRM INVESTED THE SEED IN SERIES A STAGE. WHAT ARE THE NUMBERS THAT YOU
CRUNCH WHEN ACTIVITIES ARE HAPPENING IN THE MARKET? >> GREAT TO BE BACK. LAST TIME I WAS HERE IN JANUARY WE MENTIONED THAT WE COUNTED OVER 100 COMPANIES THAT WE FELT WERE IPO-READY AND I'M GLAD TO REPORT THAT THAT NUMBER IS STILL HOLDING STRONG. WE'VE SEEN ALSO SOME GREAT ACTIVITY IN THE PUBLIC MARKETS WITH RUBRIC GOING OUT FOR IPO -- WE SAW SOME STRENGTH WITH NAI INFRASTRUCTURE HARDWARE PLAY. ARM HELD UP POST KNOCKED OUT.
THESE ARE LOCATED GOOD POINTS THAT WOULD SUGGEST THAT NOT ONLY IPO MARKET SONG, THE M&A MARKET AS WELL. WE FEEL THAT THE BIG THAW THIS YEAR, WE ARE VERY OPTIMISTIC. >> THE REASON WE WANT TO HAVE YOU ON THE SHOW, AND THEY GET THAT YOU GIVE YOURSELVES A LITTLE ON THE BACK IS IDENTIFY THE NAMES REALLY THAT GO ON TO BE SUCCESSFUL SEEMS TO ME THAT EVEN SERIES A IS BECOMING A VERY COMPETITIVE SPACE IN THE CONTEXT OF AI. >> ABSOLUTELY. AI IS ONE OF THE THINGS THAT PEOPLE ARE FOCUSED ON.
WE THINK OF IT NOT JUST AS AN INNOVATION FROM A TECHNOLOGY POINT OF VIEW. THERE IS A TECHNOLOGY FUNCTION IN A CHANGE, BUT ALSO FROM A BUSINESS MODEL PREVIEW. MOST SOFTWARE TODAY IS SOLD VIA LICENSE MODEL. WHETHER YOU USE IT OR NOT, YOU PAY FOR THE LICENSE AND THAT'S THAT. ORGANIZATION CASE MODEL. WHAT IF THAT BUSINESS MODEL CHANGES TO A PERK CONSUMPTION BASIS? YOU PAY FOR EVERY TASK THAT THE AI COMPLETE. IF THAT HOLDS WE ARE AT THE DAWN OF A NEW ERA IN BUSINESS SOFTWARE BECAUSE IT IS A TRAIN FORMATION SHIFT IN HOW SOFTWARE WILL BE SOLD NAI IS ENABLING THAT.
SO WE ARE NOT JUST LOOKING AT IT FROM A TECHNOLOGY POINT OF VIEW, BUT A BUSINESS POINT OF VIEW. AT THE EARLIEST STAGES IT IS REALLY HARD TO SEE THAT SO WE ARE BETTING ON UNDER THAT IN THOSE BIG TERMS AND WE'VE BEEN DOING THAT 53 YEARS. >> MAX, WHAT IS THEREFORE THE VIEWPOINT WHEN YOU BET ON THOSE FOUNDERS OF THE EXIT RIGHT NOW? WHAT WE ARE SEEING WITH AI STARTUPS IS THEY ARE HAVING THESE INCREASINGLY INTERESTING PARTNERSHIPS WITH THEY LEGACY BUSINESSES, SAYING THEY ARE ACTUALLY GOING TO BE THE WINNERS OF ARTIFICIAL INTELLIGENCE REVOLUTION? DO YOU THINK IT IS ALL ABOUT M&A WHEN IT COMES TO THESE AI BETS? >> IT'S A GOOD QUESTION. MOST OF THE EXIT THAT HAPPENED VIA M&A. THERE ARE A FEW GIANT WINNERS
IN THE POWER LAWS TAKE EFFECT, BUT M&A IS REALLY IMPORTANT WHICH IS WHY IT IS ENCOURAGING FOR US TO SEE THIS FIFA THAT IS HAPPENING. TO YOUR OTHER QUESTION, RIGHT NOW, EVERYONE IS FOCUSING ON THE MAGNIFICENT SEVEN AND THESE BIG COMPANIES AND THE SCALE THAT THEY HAVE THERE ARE SO FEW PUBLIC AI COMPANIES WE THINK THERE'S HUNDREDS TO COME IN THE NEXT DECADE OR SO, AND I THINK THE SHIFT WILL FOCUS AWAY FROM THOSE CONCENTRATED WINNERS TODAY TO SOME OF THE START OF THAT WE ARE SEEING IN THE PRIVATE MARKETS THAT ARE COMING BEHIND THAT. CAROLINE: DICKIE FUNDRAISING FUNDS, TO KEEP ON ALLOCATING TO THE FOUNDERS, YOU GOT TO HAVE THIS PROOF OF TRACK RECORD WHAT YOU HAVE. HAVE YOU GOT ANY COMPANIES THAT YOU ARE THINKING ABOUT TO GET OUT OF THE GATES? I DO BRACE YOURSELF FOR YOUR OWN IPO PIPELINE? >> IT IS A GREAT QUESTION. A FEW THINGS HAVE TO HAPPEN FOR
THE IPO TO OCCUR AND THEY HAPPEN OFTEN VERY FAR IN ADVANCE. ONE IS OFTEN UP LEVELING OF LEADERSHIP TEAMS, FUNCTIONAL ROLES IN FINANCE, IN MARKETING, SALES, PRODUCT. SO WE SEE THAT. WE SEE CAP TABLE FOR DICTATION -- FORTIFICATION WITH BOTH PUBLIC AND PRIVATE INVESTORS THAT COME ON. ED:
NVIDIA IS A BIG ONE DOING THAT AT THE MOMENT. MAX: THAT'S RIGHT. ED: THE OTHER THING IS THE NUMBER OF INDEPENDENT SEARCHES THERE ARE EXECUTIVE OCCURRING PARTNERS. WE'VE BEEN HEARING AN UPTICK IN THAT AND WE FEEL IT FIRSTHAND AS WELL, MANY SEARCHES THAT ARE GOING ON WITH OUR PORTFOLIO. IN A LOT OF COMPANIES ARE GETTING READY FOR THIS AND THAT IS HAPPENING AND IS BEHIND THE SCENES, BUT IT WILL HAPPEN. CAROLINE:
AND BOY, DO WE BRACE OURSELVES FOR IT. NEXT, THANK YOU SO MUCH FOR SPENDING TIME WITH US. MEANWHILE COMING UP, LET'S TALK ABOUT A NEW ONCE-IN-A-LIFETIME STAY AND EXPERIENCE CATEGORY FOR AIRBNB. ALL THE DETAILS NEXT. THERE ARE SOME GOOD PICTURES.
THIS IS BLOOMBERG TECHNOLOGY. ED: THE WORLD'S BIGGEST RECORD LABEL, UNIVERSAL MUSIC SAYS IT HAS ENTERED A NEW LICENSING AGREEMENT WITH TIKTOK, ENDING THE DISPUTE THAT LED TO ARTIST SONGS BEING PULLED FROM THE SOCIAL MEDIA PLATFORM. RIHANNA, DRAKE JOINING TAYLOR SWIFT. GIVE ME THE DETAILS. >> SINCE FEBRUARY BASICALLY THE MUSIC FROM ARTISTS UNDER UND HAVE DISAPPEARED FROM FEEDS BECAUSE OF THE ARTIST THEMSELVES AND TO GET THIS DEAL WAS NOT IN PLACE. THERE IS A NEW DEAL IN PLACE
THAT WOULD GIVE IMPROVED PAYMENTS FOR SONGWRITERS AND ARTISTS. AND THE TWO COMPANIES ALSO SAYING THAT THEY WILL WORK TOGETHER ON PROMOTIONAL CAMPAIGN AROUND NEW SONGS AND RECORDS. ONE MORE PIECE TO THIS WHOLE STORY, THAT WAS A BIG CONCERN, AND THAT IS TO DO WITH AI. THIS AGREEMENT DOES SAY THAT TIKTOK WILL EXPAND ITS PROTECTIONS WHEN IT COMES TO AI BECAUSE CERTAINLY SONGWRITERS ARE WORRIED ABOUT NOT ONLY SONGS BEING CREATED, VIDEOS AND IMAGES BEING CREATED, BUT ALSO THE FACT THAT IT HAS BEEN KIND OF A LAUGHABLE PROCESS.
I'M SURE A LOT OF THE USERS WHO HAD THE SOUND DISAPPEAR OVERNIGHT WILL BE EXCITED TO GET THOSE SONGS BACK. CAROLINE: WE THANK YOU, ALEX. BRILLIANT TO GET ALL THE ASSESSMENT. BUT ALSO GOING VIRAL, AIRBNB ANNOUNCING ITS LATEST CATEGORY, ICONS.
FOR EXTRAORDINARY EXPERIENCES HOSTED BY THE GREATEST NAMES IN MUSIC, SPORTS, ART AND MORE. IS THIS JUST A BIT OF GOOD PR OR IS THIS GOING TO BRING IN REAL MONEY? >> THIS IS DEFINITELY PART OF THE MARKETING EXPENSE. IT'S EXPENSIVE TO BUILD A HOUSE FROM "UP" FROM SCRATCH AND POSTING IN NEW MEXICO AND HOSTING IT WITH A CRANE 50 FEET OFF THE GROUND. THIS IS DEFINITELY IN MARKETING
SPENDS BUT I HOPE TO BE ABLE TO DRIVE MORE TRAFFIC. AND ALSO REACH NEW AUDIENCES ABROAD. ED: THIS WAS A BIG THING THAT PLAYED OUT ON SOCIAL MEDIA. THEY TRIED TO DO THE THING FROM THE MOVIE BUT IT WAS WITH A CRANE AND THEN I SAW ALL THE STANDARDS AND PEOPLE ASSOCIATED WITH AIRBNB PADDING BUT -- PATTING BRIAN CHESKY ON THE BACK. IT SEEMS LIKE A BIT OF A PERSONAL PROJECT. >> IT IS A BIT OF A PERSONAL PROJECT, SOMETHING THAT HE HAS DONE BEFORE. THEY PUT A HOME UP ON AIRBNB
AND OF COURSE LAST YEAR, THERE WITH THE BARBIE DREAM HOUSE WHICH WENT VIRAL, SO THIS IS REALLY HIM TAKING AIRBNB BEYOND SOME OF THE CORE EXPERIENCES THAT WE ALL HAVE COME TO KNOW. HE WANTS PEOPLE TO BE INSPIRED BY THESE HOMES. CAROLINE: SEE, HE STARTS WANTING TO GET IN ON ALL OF THESE ONE-OF-A-KIND EXPERIENCES THANKS FOR BRINGING US A REALLY FUN STORY TO END. AS LONG AS YOU ARE NOT AFRAID
OF HEIGHTS OR SOMETHING. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. ED: WHAT IT DID SHOW AND I IMAGINE IT WILL BE ANOTHER THE SHOW IN 24 HOURS TIME TO GET APPLE REPORTS AFTER THE BELL. SO MANY STORIES.
WE ARE PUTTING THE POT ON APPLE, SPOTIFY, AND THE BLOOMBERG FORMS. AND ONCE AGAIN, JUST A BIG THANK YOU FROM CAROLINE AND I. SO MANY OF YOU REACH OUT SAYING THAT YOU LISTEN TO THE SHOW IN PODCAST WARM AND BRINGING YOU THAT EVERY DAY. STAY TUNED. SO MUCH MORE TO COME, BUT ONE DAY LEFT IN THE WEEK. IT'S ALMOST FRIDAY, AGAIN.
FROM SAN FRANCISCO AND NEW YORK CITY, THIS IS BLOOMBERG TECHNOLOGY.
2024-05-05