Bloomberg Technology 08/01/2023
ANNOUNCER: FROM THE HEART OF WHERE INNOVATION, POWER, MONEY COLLIDE AND SLICK IN VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. ED: ED LUDLOW HERE IN SAN FRANCISCO, CAROLINE HYDE IS OFF TODAY. THIS IS "BLOOMBERG TECHNOLOGY." COMING UP, FOR EARNINGS COVERAGE AS UBER REPORTS ACER FAR -- SURPRISE OPERATING PROFIT BUT MISSES A REVENUE ESTIMATE. WE SIT DOWN WITH THE CEO.
PLUS WE LOOK A COMPETITION IN SOCIAL MEDIA AS ELON MUSK'S X TRIES TO BECOME AN EVERYTHING OUT. WE DISCUSS WITH THE CEO AND GET A READ ON PRIVATE MARKETS AN VENTURE CAPITAL WITH OUR VENTURE SPOTLIGHT. A QUICK CHECK ON THE MARKETS, THIS IS THE TECHNOLOGY CORNERS OF YOUR EQUITY MARKETS, 100, SOFT ABIDE, 210%. WE ARE TREADING WATER WHEN IT COMES TO THE TECH SECTOR. 2% GAIN ON THE NASDAQ 100, LAST WEEK WEEK EARNINGS DRIVING THE NARRATIVE, UNDERPERFORMANCE IN THE U.S.
LISTED SHARES OF CHINESE TECHNOLOGY NAMES, THE NASDAQ GOLDEN DRAGON INDEX DOWN 1.7% AS WE CONTINUE TO GAUGE WHAT IS GOING ON IN THE CHINESE ECONOMY. PARTICULARLY FROM THE REGULATORY STANDPOINT AND CHINESE A GOVERNMENT ATTITUDE TOWARDS SOME CHINESE TECH PLAYERS.
AND AGAIN BITCOIN NOW BELOW 29,000 U.S. DOLLARS, TRADED FOR THE LAST 10 DAYS OR SO IN THIS NARROW RANGE BETWEEN 20 9000, 20 9500 U.S. DOLLARS PER TOKEN. NO REAL NEWS CATALYST OR NEWS FLOW DRIVING WHAT IS HAPPENING IN THAT CRYPTOCURRENCY. ONE OF MY FAVORITE RISK ASSETS.
IN THE EARNINGS STORY AND THE SINGLE NAME MOVERS, THIS IS WHAT WE ARE LOOKING AT, UBER. FOR THE FIRST TIME AN OPERATING PROFIT ON A CAP ACES, SOMETHING THE WORLD HAS BEEN WAITING FOR WHEN IT COMES TO UBER. THE QUESTION IS, WILL THEY BE PROFITABLE? THE STOCK DOWN 6%, ITS BIGGEST DECLINE SINCE OCTOBER. THE CONCERNS IN THE STREET SEEMED TO BE ABOUT GROWTH BUT THE NUMBERS IN THE QUARTER GONE WITH GOOD. WE GET MORE WITH BLOOMBERG RESULTS COVERING EVERYTHING GIG ECONOMY AND THE APPS. GIVE ME THE MAY NUMBERS. BY ALL ACCOUNTS ON EVERY
METRIC, WHETHER IT IS THE DEMAND FOCUS OR SUPPLY FOCUS, UBER DID WELL. >> HOOVER USED TO BE KNOWN AS THE POSTER CHILD FOR MONEY-LOSING UNICORNS IN SELLECK AND VALLEY. THIS QUARTER, REALLY PUT A LID ON THAT.
YOU HAD NET INCOME OF $394 MILLION, NOT THE FIRST TIME IT HAS POSTED A NET GAIN BUT WHAT IS DIFFERENT THIS TIME IS A LOT OF THAT CAME FROM THE UNDERLYING BUSINESS, NOT JUST POSITIVE SWINGS IN ITS EQUITY STAKES. WHEN YOU LOOK UNDER THE HOOD, THOSE WERE TRIP VOLUMES AND -- IN ITS RIDE-HAILING BUSINESS AT ALL-TIME HIGHS FINALLY RECOVERING TO PRE-PANDEMIC LEVELS. YOU ALSO HAD DELIVERY DEMAND AT ALL-TIME HIGHS, PEOPLE USING THE APP TO ORDER TAKEOUT MORE OFTEN WITH BIGGER BASKET SIZES AND ON TOP OF THAT, YOU HAVE OTHER BUSINESS LINES LIKE ADVERTISING, SUBSCRIPTIONS, FINALLY RISING TO A POINT WHERE IT IS MAKING A DENT IN HOW MUCH DEBT DEMAND THE COMPANY IS BRINGING IN TO THE APP. LIKE YOU SAID, THE STREET WAS
NOT TOTALLY CONVINCED THE NUMBERS ARE THERE LONG-TERM. YOU HAVE POSITIVE BOOKINGS FOR THIS QUARTER, GROW 16%. AT THE SAME TIME, THERE IS SKEPTICISM THEY CAN KEEP THE RUN GOING, ESPECIALLY WHEN MACROECONOMIC HEADWINDS ARE LOOKING TO BE A BIT OF A CHALLENGE FOR OTHER TECH PLAYERS. ED: THE STORIES, A VERY GOOD SUMMARY BY THE WAY OF THE NUMBERS, BUT THE STORY IS PEOPLE ARE WILLING TO SPEND ON THE RIDE-HAILING, THEY ARE WILLING TO SPEND ON FOOD DELIVERY, DESPITE A TOUGHER ECONOMIC ENVIRONMENT. BUT THE BAR SO HIGH FOR UBER
GOING FORWARD, RIGHT? JACKIE: THAT IS EXACTLY RIGHT. THEY MADE STEPS OVER THE PAST FEW YEARS AND REALLY DIFFICULT ONES AT THAT. IF YOU REMEMBER WHERE THEY WERE DURING THE START OF THE PANDEMIC, MASSIVE LAYOFFS, THEY HYPED OFF UNPROFITABLE UNITS, THEY HAVE BEEN PREPARING THE BUSINESS FOR A BUSINESS THAT IS NOT RELYING ON ARTIFICIALLY LOW PRICING AND NOW YOU TAKE A LOOK AT WHAT ITS GROWTH DRIVERS ARE GOING FORWARD. IT IS GOING TO RELY ON IS THE
APP FUN TO BE ON FOR USERS? IS IT USEFUL NOT JUST FOR TAKEOUT AND DELIVERY BUT ALSO WHAT ARE THE OTHER WAYS I CAN SNAG SOME OF THE ATTENTION? IT IS GOING INTO CHARTERED BUSES, IT HAS UBER BOAT IN GREECE FOR EXAMPLE. IT IS REALLY LOOKING AT ANY OTHER WAYS IT CAN TAP OATH AND IT HAS BEEN EFFECTIVE SO FAR BUT, AT THE SAME TIME, THE DELIVERY DEMAND IS STARTING TO TAPER OFF A LITTLE BIT. YOU HAVE DOORDASH REPORTING TOMORROW AND I THINK INVESTORS ARE LOOKING TO SEE HOW RESILIENT THAT IS BECAUSE THAT IS A GROWING PART OF UBER'S OVERALL BUSINESS. ED: THE OTHER PIECE OF STANDALONE NEWS IS THE CFO, NELSON CHAI, WILL STEP DOWN EFFECTIVE JANUARY 5.
I THINK THAT CONFIRMS YOUR REPORTING FROM EARLIER IN JULY. WHAT DID THE COMPANY HAVE TO SAY ABOUT THAT? JACKIE: ONLY POSITIVE THINGS. NELSON HAS HAD AN AMAZING RUN AT THE COMPANY. HE REALLY CLEANED UP THE UBER
BALANCE SHEET FROM WHEN IT FIRST IPO DID INTO NOW -- IPO'D INTO NOW. THIS IS KIND OF HIS VICTORY LAP OF SORTS. THE COMPANY SAID THEY ARE LOOKING FOR ANOTHER REPLACEMENT BUT HE WILL STAY ON BOARD UNTIL JANUARY 5 NEXT YEAR, SO INVESTORS CAN STAY ASSURED THAT DISCIPLINE AND EXECUTION IS STILL GOING TO REMAIN IN THE MONTHS TO COME. ED: BLOOMBERG'S JACKIE DAVALOS OUT OF D.C., THANK YOU. LET'S STAY WITH UBER, I WITH A NOTE REACTING TO EARNINGS, THE UBER CEO, THE COMEBACK KID. THE CEO IS LEADING A "COMEBACK FOR THE AGES AT UBER." JOINING US IS DAN IVES, A
SENIOR ANALYST WHO HAS PERFORMED RATING AND $52 PRICE TARGET ON UBER. THE COMEBACK KID, WHY DO YOU SAY THAT? DAN: GO BACK 18 MONTHS, IT WAS AGAINST THE LAW AND I LOOK AT GROWTH, LOOK AT PROFITABILITY AND CASH FLOW, ESPECIALLY AS ITS LITTLE BROTHER LIFT IS AT THE KIDS TABLE -- LYFT IS AT THE KIDS TABLE. I THINK THIS IS A KNEE-JERK REACTION WHERE BUYERS WILL CAUSE THE STOCK TO CONTINUE TO MOVE HIGHER. IN THE FOURTH QUARTER, ROCKY
BALBOA COME BACK. ED: THE GROSS BOOKINGS FORECAST FOR THE CURRENT PERIOD WAS SLIGHTLY AHEAD OF EXPECTATIONS. THERE DOES SEEM TO BE CONCERNED LONGER-TERM WITH UBER. WHY DON'T YOU SHARE THAT CONCERN? DAN: [INDISCERNIBLE] STRATEGICALLY IF YOU LOOK AT RIDES, MOBILITY, YOU LOOK AT WHAT IS HAPPENING ULTIMATELY ON THE FOOD DELIVERY BUSINESS, I THINK NUMBERS CONTINUE TO BE CONSERVATIVE. I THINK THE KEY HERE IS THE STREET DOES NOT GET AHEAD OF ITSELF. THEY ARE NOT GOING TO CAN YOU TO RAISE GUIDANCE MAYBE AS MUCH AS INVESTORS THOUGHT WHICH IS WHY YOU SAW A KNEE-JERK REACTION BUT I THINK THAT IS AGAIN FOR THEM, UNDER PROMISE AND OVER DELIVER, INTO 2024 AND I THINK AT WAS ONE OF THE BEST REPORT DISRUPTIVE TECH NAMES OUT THERE WHICH COMEBACKS HAVE BEEN LED DOWN. ED:
BACK TO FEBRUARY AND THE GUIDANCE YOU ARE REFERRING TO, THE $5 BILLION IN 2024, EVEN IF NOT DRAMATIC, WERE YOU SURPRISED THEY DID NOT REVISE HIGHER EVEN THOUGH -- REVISE HIGHER LITTLE? DAN: I THINK THAT'S THE WAY IT GOES. THEY'RE STILL VOLATILITY INTO THE SECOND HALF OF THE YEAR AND WANT TO GIVE THEMSELVES WIGGLE ROOM. I THINK THEY ARE UNBEATABLE BUT IF YOU LOOK AT THE EXECUTION STORY, NOT JUST TALKING THE WALL, WALKING THE WALK.
MANY OF THE BARRIERS THAT HAVE BEEN SKEPTICAL HAVE BEEN PROVEN WRONG. THE LAST RECORDERS AND EVEN LAST YEAR, THIS IS NOW WHAT I WILL CALL THE NEXT CHAPTER OF SUCCESS STARTING TO PLAY OUT. ED: LONG-TERM, WHAT IS THE PICTURE FOR UBER? YOU CALLED THE CEO THE COMEBACK KID, BUT THAT COMEBACK HAS HAPPENED. HOW DOES HE LEAD THE COMPANY INTO THE NEXT FIVE OR 10 YEARS? DAN: ULTIMATELY, DOWN THE ROAD, IT'S GOING TO BE TIMELESS AND PLAY A.
WHERE I SEE THEM DOING MORE MORE THINGS WITH TESLA, JUST WHEN YOU THINK ABOUT FROM WHERE THEY ARE GOING FROM THE TECHNOLOGY PERSPECTIVE, I THINK IT WILL BE SOMETHING WHERE THEY ADD MORE FROM THE RESOURCE PERSPECTIVE AND ULTIMATELY PENETRATING THE CONSUMER MORE AND MORE. I THINK THAT IS GOING TO BE THE GOAL, THAT IS THE GOLDEN GOOSE WHEN YOU THINK ABOUT AHEAD. ED: I THINK THE CEO WAS SAYING EARLIER THIS MORNING THEY SEE A WORLD OF TRUE AUTONOMY BEING SEVEN TO 10 YEARS AWAY. DOES THAT SIGNAL COMPLACENCY TO
YOU? THAT THEY ARE NOT INVESTING AND FOCUSED ON IT NOW. DAN: WHAT THEY SAY AND WHAT THEY ARE DOING ARE TWO SEPARATE THINGS. STRATEGICALLY THEY ARE GOING TO BE FOCUSED ON IT BUT I THINK IT WILL BE MORE THROUGH PARTNERSHIPS. THE LAST THING YOU WANT TO SEE THEM DO IS SPEND MONEY LIKE ROCK STARS LIKE THEY WERE DOING TWO TO THREE YEARS AGO. I THINK IT IS ABOUT BALANCE AND
GROWTH. THAT CONTINUES TO PLAY OUT. IT IS HARD TO POKE HOLES IN THE STORY. YOU HAVE KNEE-JERK REACTIONS LIKE WE HAVE SEEN WITH OTHER NAMES BUT WE ARE BUYERS. I THINK THIS IS A STOCK THAT ULTIMATELY GETS THE SENIOR CITIZEN HAD LEVEL INTO 2024. ED:
WE HAVE BEEN TALKING A LOT ABOUT "BLOOMBERG TECHNOLOGY" -- ON "BLOOMBERG TECHNOLOGY" ABOUT THE IDEA OF AN EVERYTHING APP. UBER SEEMS LIKE IT IS AS CLOSE TO AN EVERYTHING APP AS YOU SEE THAN SOUTHEAST ASIA. YOU SEE A FUTURE FOR THEM WHEN THEY ALTER A BROAD RANGE OF SERVICES AND PRODUCTS? DAN: I THINK THAT IS DEFINITELY ONE OF THE POTENTIAL PATHS. AS WE HAVE SEEN WITH GRAB IN
INDONESIA AND THROUGHOUT ASIA, WE HAVE SEEN IT WITH WE CHAT, IT IS EASIER SAID THAN DONE. I THINK UBER IS GOING TO BE A BROADER PLAN FOR TWITTER FORMALLY AND NOW IN TERMS OF OVERALL STRATEGY. UBER NEEDS TO MAKE SURE THEY BUILD THIS OUT THE RIGHT WAY AND DON'T TRY TO BE ALL THINGS TO ALL PEOPLE. I THINK THE BALANCE THEY ARE STRIKING. AND NOW ADULTS ARE RUNNING THE
COUNTRY AND INVESTORS LIKE WHAT THEY SEE THIS YEAR. ED: DAN, LOOKING AHEAD TO THURSDAY, THE BIG ONE, APPLE REPORTS ITS EARNINGS, WHAT ARE YOU EXPECTING FROM THE IPHONE MAKER? DAN: GET OUT THE POPCORN. THEY CONTINUE TO BEAT EXPECTATIONS IN CHINA, WHICH IS THE HEARTS AND LUNGS. THEY TALK ABOUT THE IPHONE 15. THERE RATING HIGHER ON SERVICES AS IT MARCHES TOWARD THE FOUR CHILEAN MARK. DESPITE MANY IN THEATER THIS YEAR. ED: I LOOK AT MO D.L.
ON THE BLOOMBERG TERMINAL, THE ESTIMATES WE ARE COMPILING AND THE YARN YOU'RE TOPPLING GOES -- GROWTH'S SERVICES. WHERE'S YOUR HEAD OUT WITH APPLE SERVICES OFFERING RIGHT NOW? DAN: I THINK SERVICES STARTS TO TAKE TOWARD DOUBLE DIGITS INTO FISCAL 2024. I THINK SOME OF THE CARDS WORTH 1.3 CHILEAN DOLLARS TO $1.4 TRILLION. THIS IS OFFER GROWTH STORY DESPITE THE MACRO. THAT IS WHAT IS HAPPENING AT APPLE. I THINK WHEN YOU THINK ABOUT IT, IT IS ALSO THE MARGIN STORY, YOU SEE ASP'S LEFT, IT IS ANOTHER EXAMPLE OF COOK PLAYING CHESS WHILE OTHERS PLAY CHECKERS. ED:
DAN IVES CALLING THE UBER CEO, DARA KHOSROWSHAHI, THE COMEBACK EEO. COME BACK LATER WHEN DARA KHOSROWSHAHI DISCUSSES THOSE RESULTS. COMING UP, ELON MUSK'S X GOES AFTER NONPROFIT. WHY THEY ARE THROWING THE BOOKS AT A GROUP THAT MONITORS FOR HATE SPEECH. THAT CONVERSATION NEXT. WE ARE ALSO WATCHING SHARES OF PINTEREST AND ELECTRONIC ARTS, BOTH NAMES REPORTING AFTER THE BELL PINTEREST, THE EXPECTATIONS PRETTY LOW, LITTLE CHANGE IN MONTHLY ACTIVE USERS FROM THE PRIOR QUARTER. MUTED USER GROWTH IS WHAT
BLOOMBERG INTELLIGENCE IS EXPECTING. CONTRAST THAT WITH ELECTRONIC ARTS, THE STOCK TRADING FLAT. LOTS OF FOCUS ON STAR WARS. STAR WARS, STAR WARS, AND MORE STAR WARS. THIS IS BLOOMBERG TECHNOLOGY.
♪ ED: ELON MUSK'S X PSEUDO-NONPROFIT GROUP THAT MONITORS ONLINE HATE SPEECH, ACCUSING IT OF FALSELY DESCRIBING THE SOCIAL MEDIA PLATFORM FORMALLY KNOWN AS TWITTER AS BEING OVERWHELMED WITH HARMFUL CONTENT. IN THE LAWSUIT FILED MONDAY IN SAN FRANCISCO FEDERAL COURT, X CORP SAYS THE CENTER FOR COUNTERING DIGITAL HATE IS ILLEGALLY SCRAPING HIS SERVERS AND CARRY PICKING OBJECTIONABLE POSTS AS PART OF THE "SCARE CAMPAIGN" TO DRIVE AWAY ADVERTISERS. WE WILL CONTINUE TO TRACK THAT STORY. FOR MORE ON THE EVERYTHING APP, THE BATTLE FOR SOCIAL MEDIA DOMINANCE, WE ARE DELIGHTED TO BE JOINED BY STOCK TO ITS CEO. THIS IS SO INTERESTING BECAUSE AT THE CORE OF THE IDEA OF AN EVERYTHING APP, AS OUTLINED BY ELON MUSK AND THE CEO OF ACTS, FORMALLY KNOWN AS TWITTER, IT IS ADDING DATA, FINANCIAL SERVICES, AND THAT IS CREEPING INTO YOUR DOMAIN A LITTLE BIT.
>> YEAH, I THINK IT IS EASIER SAID THAN DONE. FIRST OF ALL, THINGS FOR HAVING ME ON. I THINK AN EVERYTHING APP IS BEYOND JUST ADDING THE FEATURES, IT IS ABOUT ENGAGING AND CREATING A SPACE THAT MAKES PEOPLE COMFORTABLE DOING IT AND I WOULD ARGUE TRUST IS A LARGE PART OF THAT SPACE. WHICH MAKES IT DIFFICULT. OVER THE LAST THREE TO SIX MONTHS, WE HAVE SEEN A TOUGH TIME OF TWITTER ESTABLISHING OR X ESTABLISHING AND MAINTAINING TRUST WITH THEIR COMMUNITY END USER BASE. ED: THERE'S A PLATFORM WHERE YOU HAVE DATA AND YOU ALSO HAVE THE OPPORTUNITY TO COMMENT AND SHARE LIVE QUOTE ABOUT THE MARKETS. DO YOU SEE THAT BEING ABLE TO BE REPLICATED ON X, WHICH ALREADY HAS A COMMENT PART, JUST NOT THE DATA PART. RISHI: OBVIOUSLY WE HAVE THE COMMUNITY
ASPECT OF IT AS X DOES. WE CAME UP WITH TWITTER 14 YEARS AGO AND OUR COMMUNITY ORGANICALLY GREW THE LAST FOUR YEARS. WE HAVE SEEN EXPERIMENTS WITH X ADDING CHARTS AND PARTNERSHIP WITH OTHER VENDORS AND PROVIDERS AND I THINK THAT IS SOMETHING THEY COULD DO BUT I WOULD ARGUE IN CERTAIN VERTICALS, THERE IS MUCH MORE DEPTH THAN DATA DEMANDED BY THE COMMUNITY END USERS TO MAKE IT A VALUABLE, VERTICAL EYES TAP. INVESTING SPECIFICALLY IS A GREAT SPACE FOR THAT AND THAT IS THE SPACE WE ARE IN BUT I THINK IT IS MORE THAN JUST ADDING DATA, IT IS THE CONTEXT, TO BE ABLE TO FOCUS ON THE CONTEXT FOR THE COMMUNITY AS YOUR STRATEGY ENTIRELY, WHICH IS MUCH MORE THAN WHERE X IS OUT TODAY. ED: WE HAVE BEEN SPEAKING WITH YOU AND "BLOOMBERG TECHNOLOGY" OVER THE LAST TWO THE THREE YEARS IN THE CONTEXT OF MEME STOCKS. THE IDEA THAT SOMETHING IS TRENDING OR A POINT OF DISCUSSION ON SOCIAL MEDIA PLATFORMS IN THE CONTEXT OF SPECIFIC NAMES. DO YOU RECOGNIZE X, THE
PLATFORM FORMALLY KNOWN AS TWITTER, AS A PLACE WHERE THOSE CONVERSATIONS ARE STILL TAKING PLACE OR WHERE THEY ORIGINATE FROM? RISHI: I THINK ABSOLUTELY THE CONVERSATION IS STILL TAKING PLACE. THE CONVERSATION HAS TAKEN PLACE ON X, FORMALLY TWITTER, ON STOCKTWITS, ON REDDIT. A CONVERSATION IS MORE THAN JUST ANYONE PLATFORM. I DO THINK YOU ARE SEEING AN EROSION IN THE TRUST ON X TODAY RIGHT NOW WHERE IT IS TOUGHER TO FIND THE CONVERSATIONS.
I KNOW FROM SPEAKING TO MANY PEOPLE, THEIR EXPERIENCE AND DISCOVERY OF THE CONVERSATION HAS GOTTEN HARDER JUST WITH THE ALGORITHMIC CHANGES AND WHATNOT, SO I THINK THAT IS THE OPPORTUNITY FOR OTHER PLATFORMS, WHETHER IT IS THREADS OR US AT STOCKTWITS TO LEAN IN AND MAKE SURE THAT WE PROVIDE THE RIGHT KIND OF SPACE FOR THOSE CONVERSATIONS. BUT IT ABSOLUTELY STILL HAPPENS ON X. ED: HOW DO STOCKTWITS LEAN IN? IS THERE AN OPPORTUNITY FOR YOU TO EXPAND THE STOCKTWITS OFFERING AND BECOME YOUR OWN EVERYTHING APP? RISHI: I FEEL LIKE I'M AT A BOARD MEETING RIGHT NOW. BUT NO, IT IS SOMETHING WE HAVE BEEN FOCUSED ON FOR OUR VERTICAL.
LAST YEAR WE LAUNCHED TRADING IN THE APP, THROUGH OUR OWN BROKER-DEALER. I LOOK AT OUR OPPORTUNE -- OPPORTUNITY TO LEAN IN ABOUT DELIVERING VALUE ACROSS THE INVESTING LIFESTYLE FROM IDEATION, THROUGH THE EXECUTION PHASE AND INTO PORTFOLIO MANAGEMENT. THAT IS THE EVERYTHING LIFECYCLE OF YOUR INVESTING OR TRADING JOURNEY. SO WE ARE FILLING IN THE PIECES ACROSS THAT, STRATEGICALLY LIKE I SAID LAST YEAR WE ADDED EQUITY TRADING, THIS YEAR WE WILL EXPAND ON THE EXECUTION PLATFORM AND KINDS OF TRADING YOU CAN DO BOTH DIRECTLY THROUGH US AS WELL AS PARTNERS. AND CONTINUE TO FILL THAT AND LEAN IN THERE. AT THE SAME TIME, WE ARE MUCH LEANING INTO THE COMMUNITY SIDE AND SOCIAL SIDE AND GIVING BETTER TOOLS TO OUR COMMUNITY, FILLING THE GAPS AND TACKLING THE PROBLEMS THAT OUR MEMBERS HAVE. ED:
LET'S RUN WITH THAT IDEA. YOU ARE IN A BOARD MEETING, X WITH A PROPOSAL ON THE TABLE TO ACQUIRE STOCKTWITS, WHAT ARE THE CHANCES OF THAT HAPPENING? RISHI: I WOULD SAY IT IS LOW TO QUITE LOW IN TERMS OF THAT OFFER COMING. WE HAVE BEEN INDEPENDENT FOR A LONG TIME AND I THINK ELON MUSK -- THINK ELON MUSK IS MORE CURVE EURO -- MERCURIAL TYPE PERSON AND I DON'T KNOW IF HE WOULD HAVE THE APPETITE FOR ACQUISITIONS OR LOOKING OUTSIDE. HE HAS A STRONG VISION FOR WHAT HE THINKS HE WANTS TO DO FROM BACK IN THE 1990'S AND SO I DON'T KNOW THAT IT IS COMING OUT AND ACQUIRING STOCKTWITS, WHICH MAY BE WILL TAKE OVER THE TWEED BRANDING FOR HIM SINCE HE DECIDED TO LET IT GO. ED:
WHAT IS DRIVING THE CONVERSATION ON STOCKTWITS? CULTURALLY, WHERE ARE YOU SEEING TRAFFIC AND ENGAGEMENT AT ITS HIGHEST? RISHI: THE BEAUTY OF THE MARKETS IS IT IS NEW EVERY DAY. SO TODAY, RIGHT NOW IN OUR CURRENT -- WHERE WE ARE AT, EARNING SEASON IS IN FULL SWING AND WE SEE A TON OF CONVERSATION HAPPEN AROUND EARNING SEASON. SOPHIA, YESTERDAY, YOU OBVIOUSLY HAD REALLY GREAT, POSITIVE NEWS FOR THEIR STOCK AND THERE WAS A LOT OF CONVERSATION AROUND THAT, GOING INTO -- BIG EARNINGS LAST YEAR, GOING INTO BIG EARNINGS.
SO EARNINGS AND THOSE KINDS OF MARKET FACTORS ARE ALWAYS THERE. YOU DEFTLY HAVE THAT MEME STOCK ASPECT AS WELL, SO TUPPERWARE HAS BEEN ONE OF THE BIG CONVERSATIONS OVER THE LAST CALL IT FIVE DAYS OR SO I GUESS. SO WHERE PEOPLE ARE DISCOVERING, WITH TUPPERWARE, THEY ARE -- IT HAS THOSE CATALYSTS THAT I'VE TALKED ABOUT IN TERMS OF WHAT DRIVES OR CAN CREATE A MAIN STOCK. THE BEAUTY WITH THE MARKETS IS THERE IS DIFFERENT CATALYSTS, WHETHER IT IS A REGULAR THING LIKE EARNINGS OR WHETHER IT IS NEWS DRIVEN, SPECIAL REPORT FOR A BIT, AI HAS BEEN A BIG THING, EV SPACE HAS BEEN A HUGE ASPECT. ED: RISHI KHANNA OF STOCKTWITS, ALWAYS GOOD TO CATCH UP. THANK YOU FOR YOUR TIME OUT OF NEW YORK.
COMING UP, FTX'S NEW BANKRUPTCY PLAN COULD MEAN CASH PAYMENTS FOR CUSTOMERS. WE WILL BRING YOU THAT NEXT. THIS IS BLOOMBERG TECHNOLOGY. ED: NASA IS LISTENING FOR ANY SOUND FROM VOYAGER TO AFTER LOSING CONTACT WITH THE SPACECRAFT BILLIONS OF MILES AWAY. VOYAGER TWO HAS BEEN OUT OF TOUCH EVER SINCE FLIGHT CONTROLLERS ACCIDENTALLY SENT A WRONG COMMAND MORE THAN A WEEK AGO THAT TILTED ITS ANTENNA AWAY FROM EARTH. PLUS ADVISORS ARE DOUBLING DOWN
ON IN DOES -- INDIA'S DRONE MAKING SECTOR ON THE MOON BY LISTED COMPANY GENERATING A RETURN OF 600%. A 15% STAKE IN BOUT LABS DYNAMIC FOR 2.4 MILLION, EXPECTS THREE MORE PORTFOLIO COMPANIES TO GO PUBLIC SOON. FTX UNVEILED A CASH REPAYMENT PLAN AS PART OF ITS BANKRUPTCY. THE DRAFT PROPOSES VALUING CUSTOMER CLAIMS IN U.S.
DOLLARS AS OF THE DATE IT WENT BANKRUPT AND REPAYING THEM BY SELLING ACCESS TIED TO VARIOUS SILOS OF THE BUSINESS. FTX HAS NOT RULED OUT REBOOTING ANY OFFSHORE EXCHANGE, ACCORDING TO FILINGS. A BIG BLOOMBERG SCOOP ON TESLA COMING UP, A 100 MILLION DOLLAR PLAN FOR A SEMI-TRUCK CHARGING NETWORK. ED: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." ED LUDLOW IN SAN FRANCISCO, LOOKING AT THE MARKETS, THEN IT'S THE -- THE NASDAQ 100 IS THE TECH HEAVY INDEX, SOFTER BY .4%. THE STORY HAS BEEN THE MARKET TREADING WATER. THIS EARNING SEASON, THERE HAVE
BEEN DISAPPOINTMENTS, SOME MEGA CAPS HAVE SURPRISED TO THE UPSIDE WITH FOCUS AS WELL ON ECONOMIC DATA AND THE CONVERSATION ABOUT A RECESSION, PARTICULARLY IN THE U.S., IS STEERING TOWARD A SOFT LANDING BUT THERE IS SO MUCH OF THIS EARNINGS SEASON STILL TO GO. AWAY FROM EARNINGS, WE ARE LOOKING AT SHARES OF TESLA MOVING TO THE DOWNSIDE, MOVING A LITTLE LOWER, BUT THERE IS NEWS OUT OF BLOOMBERG NEWS. TESLA SEEKING A100 MILLION DOLLAR CHECK FROM THE U.S.
TO HELP IT BUILD A NETWORK OF CHARGING STATIONS FOR THE TESLA SEMI TRUCK. THAT IS ACCORDING TO EMAILS SEEN BY BLOOMBERG NEWS. THE OUTLYING PROPOSED TRUCKING CORRIDOR FROM THE TEXAS MEXICO BORDER TO NORTHERN CALIFORNIA. BLOOMBERG BROKE THAT STORY ALONGSIDE ANOTHER AND JOINS ME NOW. LET'S LOOK AT THE MAP AND WE ARE TALKING ABOUT A ROUTE BETWEEN LAREDO, TEXAS UP TO CALIFORNIA. WHAT DID YOU LEARN ABOUT WHAT HAS LET IS TRYING TO DO? >> THERE'S A LOT OF MONEY IN INFRASTRUCTURE BILL FROM PRESIDENT BIDEN TO BUILD OUT EV CHARGING.
WHEN WE TALK ABOUT EV CHARGING, WE FOCUS ON PASSENGER CARS BUT IF WE ARE GOING TO ELECTRIFY TRANSPORTATION IN THE UNITED STATES, HEAVY DUTY TRUCKING IS HUGE OPPORTUNITY AND IT IS THIS CHICKEN AND EGG THING WHERE WE DON'T REALLY HAVE A LOT OF EV TRUCKS ON THE ROAD YET BECAUSE THERE IS NOT A ROBUST EV CHARGING INFRASTRUCTURE FOR THE CLASS EIGHT TRUCKS OUT THERE. TESLA IS SEEKING FUNDING TO BUILD THIS ROUTE BASICALLY FROM TEXAS WHERE THEY HAVE A FACTORY TO NORTHERN CALIFORNIA WHERE THEY ALSO HAVE A FACTORY. IT IS OBVIOUSLY IN THEIR INTEREST TO DO THE ROUTE THIS WAY. WE KNOW THE SEMITRUCK IS GOING TO BE USED THE HALL TESLA GOODS INTERNALLY, AND ALSO A MAJOR TRUCKING CORRIDOR. THERE IS A LOT OF TRUCKING IN TEXAS IN GENERAL. THIS IS NOT A DONE DEAL, THIS IS TESLA SEEKING FEDERAL FUNDING TO DO THIS PROPOSAL BUT IT IS AN INTERESTING WINDOW INTO WHAT TESLA HAS PLANNED AND IS THINKING ABOUT AND THEIR POLICY TEAM HAS ALWAYS BEEN SHREWD OF TAKING ADVANTAGE OF ANY FEDERAL FUNDING OUT THERE. ED: I THINK IT IS NINE PROPOSED
SITES BETWEEN LAREDO AND NORTHERN CALIFORNIA. IT IS ALSO INTERESTING SOUTH OF THE BORDER BECAUSE TESLA HAS PLANS FOR PRODUCTION IN MEXICO. DANA: ABSOLUTELY. AND YOU CAN IMAGINE TESLA COULD USE THIS ROUTE TO SHIP PARTS AND BATTERIES AND GOODS BETWEEN ITS VARIOUS FACILITIES IN NORTH AMERICA BUT IT IS ALSO THE ROUTE GOES FROM LAREDO THROUGH THE PHOENIX AREA AND SOUTHERN CALIFORNIA AND THEN UP TO FREMONT. INTERESTINGLY, IT STOCKS IN COMPTON AND BAKERSFIELD. THERE IS A BIG PUSH TO ELECTRIFY IN NEIGHBORHOODS THAT ARE LOW INCOME SO THE BIDEN ADMINISTRATION IS VERY AWARE OF THE IMPACT OF DIESEL FUEL ON PORT COMMUNITIES, LOW INCOME COMMUNITIES, SO THE CITY IS CHOSEN ARE INTERESTING FROM THAT PERSPECTIVE AS WELL. ED: YOU ARE COMPLETELY RIGHT THAT THE ELECTRIFICATION STORY IS JUST AS MUCH ABOUT COMMERCIAL VEHICLES AS HIS CONSUMER CAR. WHAT DO WE KNOW ABOUT THE
PRODUCTION PLANS FOR THE TESLA SEMI? DANA: INTERESTINGLY, THEY HAVE BEEN SLOW TO GET THESE VEHICLES OUT. THEY MADE A BIG SHOW OF TURNING OVER THEIR FIRST VEHICLES TO PEPSI AND FRITO-LAY, AND THAT COMPANY IS DEFINITELY USING THEM AND PILOTING THEM AND RUNNING THEM, BUT IN THE LAST EARNINGS REPORT, TESLA SAID THE SEMI IS STILL IN PILOT PRODUCTION. IT IS GOING TO BE QUITE A WHILE BEFORE WE SEE THESE AT A MASSIVE SCALE.
TESLA IS STILL LEARNING A LOT, THE BATTERY SIZE IS STILL A QUESTION FOR A LOT OF PEOPLE LIKE HOW BIG IS THIS BATTERY. THERE WAS A RECALL THIS YEAR SO THEY ARE STILL WORKING OUT THE KINKS WHICH IS SMART, YOU DON'T WANT TO MAKE A TON OF CLASS EIGHT TRUCKS AND HAVE TO RECALL THEM. I THINK IT IS A SLOW PROCESS. ED: DANA HULL, I ENCOURAGE YOU TO CHECK OUT HER REPORTING AND WHAT TESLA IS DOING WITH PEPSICO. YOU HAVE BEEN ON THE GROUND. THE TESLA SEMI GOING TO BE A BIG STORY GOING FORWARD, BUT IT IS IN THE EARLY STAGES OF PRODUCTION AS WE LOOK AT TESLA SHARES OF SOFTER BY ALMOST 3% AT THIS POINT, BUT SEEING A LOT OF GAINS.
THANK YOU TO BLOOMBERG'S DANA HULL. ANOTHER BIG STORY WE ARE WATCHING, UBER EARNINGS OUTCOME OF THE STOCK LOWER, DISAPPOINTMENT ON THE STREET. WITH THAT IN MIND, WE WELCOME OUR BLOOMBERG RADIO AND TELEVISION AUDIENCES WORLDWIDE, JOINING US NOW IS THE CEO OF UBER, DARA KHOSROWSHAHI AND EMILY CHANG WITH ME ON SET IN SAN FRANCISCO. EMILY: THANK YOU SO MUCH FOR JOINING US. IT IS GOOD TO HAVE YOU BACK. INVESTORS ARE REACTING TO A BIT OF A REVENUE MESS BUT YOUR FIRST CAP PROFIT REPORTED EVER. TALK TO US ABOUT THE DISCIPLINE
HERE AND WHAT KIND OF CHOICES YOU HAD TO MAKE TO MAKE THIS HAPPEN IN THIS MACRO ENVIRONMENT. DARA: WE ARE VERY EXCITED ABOUT THIS. IT IS A SEMINAL MOMENT FOR UBER TO DELIVER CAP OPERATING A PROFIT, FREE CASH FLOW OVER $1 BILLION JUST IN THE CORRIDOR, ALONG WITH A STRONG TOPLINE. LOOKING AT GROSS BOOKINGS, IT WAS $33.6 BILLION, UP 18% ON A CURRENCY BASIS. I THINK THE RESULTS BOTH IN TERMS OF THE TOPLINE AND BOTTOM-LINE HAVE BEEN SECOND TO NONE AND CERTAINLY LEADING IN OUR INDUSTRY.
IT HAS TAKEN A LOT OF COST DISCIPLINE IN TERMS OF REALLY LOOKING AT MAKING THAT PERFECT MATCH BETWEEN A WRITER AND DRIVER OR AN EATER OR COURIER AT A RESTAURANT AND MAKING SURE EVERYTHING IN THAT TRANSACTION HAPPENS PERFECTLY, NO ERRORS, NO MISTAKES, NO CANCELLATIONS. AND AT THE SAME TIME, IT TAKES A LOT OF COST DISCIPLINE IN TERMS OF OVERHEADS. OUR HEADCOUNT HAS BEEN FLAT. IF YOU LOOK AT OUR HEADCOUNT
COMPARED TO 2019, PRE-PANDEMIC, OUR TOTAL HEADCOUNT IS UP 10% DURING THOSE YEARS AND GROSS BOOKINGS IN THE CORE BUSINESS HAS BEEN UP 80% VERSUS HEADCOUNT GROWTH OF 10%. IT ABSOLUTELY HAS TAKEN THE DISCIPLINE AND AT THE SAME TIME THE COMPANY CONTINUES TO INNOVATE WHICH IS WHAT IT IS ALL ABOUT. EMILY: YOU FORMALLY ANNOUNCED THE CFO, NELSON CHAI, WILL BE LEAVING THE COMPANY WHICH BLOOMBERG REPORTED A FEW WEEKS AGO.
WHAT IS THE INTERIM PLAN AND WHAT ARE YOU LOOKING FOR? WILL THIS BE AN INTERNAL HIGHER, EXTERNAL HIRE? DARA: NELSON IS GOING TO BE STAYING WITH US THROUGH THE BALANCE OF THE YEAR UP UNTIL EARLY JANUARY TO MAKE SURE THAT WE HAVE A SMOOTH SUCCESSION PLAN , THE NEXT CFO IS IN SEAT AND CAN BE COACHED BY NELSON. WHAT I'M LOOKING FOR IS ANOTHER PARTNER LIKE NELSON. NELSON CAME IN AT A DIFFICULT TIME AND TEAMED UP WITH MYSELF AND THE REST OF THE TEAM, TAKING US THROUGH AN ENVIRONMENT OF DEEP OPERATING LOSSES, THROUGH THE IPO, GETTING US A STRONG BALANCE SHEET SO WE COULD COME OUT OF THE IPO AND DEAL WITH ISSUES LIKE THE PANDEMIC TO WHERE WE ARE NOW WHICH IS A LEADING COMPANY. THE NEXT FIVE YEARS OF THE JOURNEY ARE ABOUT SCALING AND BECOMING THE TRUE GLOBAL PLATFORM THAT CAN GROW TOPLINE IN 20% RANGE, COULD CONTINUE TO INNOVATE, AND CONTINUE TO DRIVE THE KINDS OF MARGINS AND INCREMENTAL MARGIN GROWTH WE HAVE BEEN DRIVING HISTORICALLY.
WE TOLD INVESTORS THAT INCREMENTAL MARGINS IS A PERCENTAGE OF ROAST BOOKINGS GROWTH WILL BE SEVEN PLUS PERCENT AND CONSISTENTLY WE HAVE COME IN ABOVE THAT BECAUSE WE HAVE BEEN INNOVATING BUT AT THE SAME TIME DISCIPLINED ON THE BOTTOM LINE. I'M LOOKING FOR A PARTNER WHO CAN DELIVER THE NEXT CHAPTER OF OUR GROWTH LIKE NELSON DID. EMILY: LET'S TALK ABOUT THE EXECUTIVE SUITE IN THE NEXT CHAPTER, YOUR CTO A LEFT IN 2021, WAS NOT REPLACED. HOW ARE YOU THINKING ABOUT THAT
ROLE? IS THERE ANYONE IN PARTICULAR IN MIND? DARA: WE ARE -- OUR TECH TEAM IS LED BY THREE DIFFERENT LEADERS, OUR CHIEF PRODUCT OFFICER REALLY THINKING ABOUT THE WRITER APP, DRIVER APP, EATER APP, GUS FOLDER THINKING ABOUT THE CORE SERVICES, CUSTOMER SERVICE, SAFETY INSURANCE, ETC., AND ALBERT GREENBERG WHO RUNS THE INFRASTRUCTURE. WE ARE AT OUR CORE A TECHNOLOGY COMPANY AND INSTEAD OF HAVING ONE TECH LEADER WE HAVE THREE. AND THE TEAM HAS COME TOGETHER TO DRIVE OUTSIZE INNOVATION. YOU LOOK AT DRIVER UPFRONT FARES, WHEN YOU LOOK AT UBER TEAMS PRODUCT, WHEN YOU LOOK AT HALO BULLS, LOW-COST, ENTRY INTO NEW VERTICALS, THERE IS NO COMPANY IN THE INDUSTRY THAT IS INNOVATING AT OUR SPEED OR SCALE AND IT IS THANKS TO THE TECH LEADERS WE HAVE IN-HOUSE AT THIS POINT. ED: TO OUR GLOBAL RADIO AND TELEVISION AUDIENCE, YOU ARE LISTENING TO OUR CONVERSATION WITH UBER CEO, DARA KHOSROWSHAHI , FOLLOWING THE EARNINGS PRINT.
A LOOK AT THE QUARTER GONE, NUMBER OF TRIPS, GROSS BOOKINGS, ACTIVE DRIVERS, DEMAND AND SUPPLY SIDE, ALL RECORDS. STRONG GROSS FORECAST. WHY WASN'T THAT ENOUGH TO RAISE A STATION'S FOR ADJUSTED -- NEXT YEAR? YOU SAID IT WOULD BE AROUND $5 BILLION. DARA: I'M NOT A STOCK ANALYST, I FOCUS ON RUNNING THE COMPANY READ WE GUIDED FOR Q3 WELL ABOVE STREET ESTIMATES AND WE GOT IT FOR 975 MILLION FOR $1 BILLION 25 -- $1.25 BILLION WHICH WAS A SUBSTANTIAL
INCREASE VERSUS EXPECTATIONS AND CONSISTENTLY IF YOU LOOK AT OUR TRACK RECORD, WE PUT OUT TARGETS, HAVE CONSISTENTLY BEATEN THE TARGETS, ANYWHERE 5% TO 10%, AND WE INTEND TO BE TO THAT $5 BILLION TARGET JUST AS WE HAVE BEATEN EVERY TARGET THAT WE HAVE PUT IN FRONT OF INVESTORS. WE THINK CONTINUE DISCIPLINE EXECUTION, STRONG TOPLINE GROWTH, INCREASED MARGINS, AND MORE OF THE SAME ALONG WITH INNOVATION IS GOING TO GET US WILL BE ON THE $5 BILLION. ED: THE INNOVATION PIECE IS INTERESTING, I LIKED EMILY'S QUESTION ABOUT THE TECH LEADERSHIP.
EMILY HAS BEEN ALL AROUND SAN FRANCISCO IN A CRUISE, AND I HAVE BEEN AROUND IN WAYMO AND I APPRECIATE JUMPING IN A ROBO TAXI WOULD KNOW DRIVER IS NOT YET A REALITY. I ASKED FRIENDS ON LINKEDIN, WHEN IS UBER GOING TO TAKE THAT FLEET OF AUTONOMOUS VEHICLES AS MORE OF A PRIORITY? DARA: WE ARE VERY BULLISH ON AUTONOMOUS. IT IS TAKING TIME. WE HAVE TO MAKE SURE THE TECHNOLOGY IS SAFE.
WE ARE PARTNERING AMONGST ALL OF THE SIGNIFICANT VERTICALS WE HAVE, WHAT ARE THE UNIQUE ASPECTS OF UBER NOT ONLY ARE WE GLOBAL, NOT ONLY ARE WE THE LARGEST PLATFORM WITH THE BIGGEST AUDIENCE, 100 37 MILLION CONSUMERS COMING TO US, EVERY MONTH, BUT WE OPERATE IN EVERY SIGNIFICANT VERTICAL FOR AUTONOMOUS, PASSENGER VEHICLES WITH UBER, DELIVERY FOOD, AND GROCERY DELIVERY WITH EATS, THEN THE FREIGHT AS WELL, AUTONOMOUS TRUCKS ARE GOING TO BE A BIG PART OF OUR FUTURE. IF YOU LOOK AT EACH ONE OF THOSE VERTICALS, WE ARE PARTNERING WITH LEADING COMPANIES. WAYMO FOR EXAMPLE, A PASSENGER VEHICLES -- IN PASSENGER VEHICLES, NERO AND SERVE, AMONGST OTHERS IN DELIVERY, THEN TRUCKING OF COURSE, AURORA WITH WHICH WE HAVE A STRATEGIC INVESTMENT AS WELL. SO WE ABSOLUTELY BELIEVE AUTONOMOUS IS GOING TO BE PART OF THE FUTURE AND WE ARE WORKING TO EXPOSE OUR LEADING MARKETPLACE TO AUTONOMOUS TECHNOLOGY AS IT DEVELOPS IN A SAFE, EFFICIENT MANNER. EMILY: PEAKING OF ANOTHER TECHNOLOGY, ARTIFICIAL INTELLIGENCE, INSTACART IS OUT WITH A CHATBOT, DOORDASH AS WELL, IS THERE AN YOU PER BOT IN THE WORKS -- UBER BOUGHT IN THE WORKS? DARA: THERE'S DEFTLY GOING TO BE ONE IN THE WORKS. WE HAVE BEEN WORKING WITH MACHINE LEARNINGS, ARTIFICIAL INTELLIGENCE SYSTEMS, DEEP LEARNING SYSTEMS, FOR YEARS AND YEARS AND YEARS.
EVERY TIME YOU GET MATCHED UP WITH A CAR OR MATCHED UP WITH A COURIER, THERE ARE ALGORITHMS MAKING THAT MATCH. THE PRICING THAT HAPPENS, TIME OF DAY, AND DISTANCE, ALL OF THAT IS DRIVEN BY MACHINE LEARNING ALGORITHMS, SO THAT HAS BEEN GOING ON AND THOSE ALGORITHMS ONLY GET BETTER AND THE DATA SETS WE WORK WITH ARE THE LARGEST GLOBALLY. THE MORE DATA WE HAVE, THE SMARTER WE GET, THE MORE PERSONAL WE CAN GET. WE ARE NOW FOCUSED MORE ON PRODUCT APPLICATION. INTRODUCING GET HUB COPILOT FOR OUR DEVELOPERS OR HOPING SUMMARIZE SITUATIONS FOR CUSTOMER SERVICE AGENTS SO THAT THEY ALREADY KNOW CONTEXT OF WHAT IS GOING ON WITH A PARTICULAR CUSTOMER AND HOW THEY CAN HELP. WE WILL ABSOLUTELY PUT OUR AI AGENTS OUT TO HELP THE CONSUMER BUT ALSO DO NOT FORGET ABOUT THE DRIVER.
DRIVERS ARE DRIVING ON OUR MARKETPLACE, THEY ALSO WANT HELP, WHERE SHOULD I GO, WHAT RIDE SHOULD I ACCEPT, ETC.. SO WE ARE ALSO WORKING ON AI TO POWER DRIVERS AND COURIERS SO THEY CAN MAKE SMARTER DECISIONS EVERY DAY TO BE ABLE TO EARN FLEXIBLY BUT MAXIMIZE EARNINGS BASED ON THEIR TIME. EMILY: SO JUST TO DOUBLE DOWN THERE, ISN'T UBER CHATBOT SOMETHING YOU ARE WORKING ON NOW? DARA: WE ARE WORKING ON IT NOW, ABSOLUTELY. BUT IT IS A VERY SMALL PART OF THE AI ECOSYSTEM IN UBER. ED: OUR GLOBAL RADIO AND TELEVISION
AUDIENCES LISTENING TO UBER'S CEO, DARA KHOSROWSHAHI . UBER IS AS CLOSE TO ANYTHING THE U.S. AND EUROPE HAS TO AN EVERYTHING APP, SOMETHING YOU WOULD SEE AKIN TO SOUTHEAST ASIA. I'M CURIOUS HOW CLOSELY YOU ARE PAYING ATTENTION TO YOUR CROSSTOWN NEIGHBOR, MR. MOSK, AND WHAT X IS DOING WITH AN EVERYTHING APP. DARA: IT IS DIFFICULT TO TAKE YOUR EYES OFF OF WHAT MOSK IS DOING OR READ ABOUT -- MUSK IS DOING A READ ABOUT WHAT ELON IS DOING.
WE WANT TO LEARN BECAUSE IT IS PRETTY FUN BUT WE ARE LEADING IN TERMS OF BUILDING OUT A SUPER APP. IN SOUTHEAST ASIA, WE HAVE A SIGNIFICANT STRATEGIC INVESTMENT IN GRAB. GRAB HAS MOBILITY, DELIVERY, PAYMENTS ON THEIR APP. KAREEM, IN WHICH WE HAVE A BIG INVESTMENT IN MIDDLE EAST, SAME THING, MOBILITY, DELIVERY, PAYMENTS AND STUFF. WE ARE VERY FAMILIAR WITH A SUPER APP CONCEPT AND IN THE WEST, I THINK UBER IS THE CLOSEST TO ACHIEVING THAT SUPER APP. WE WANT TO BE THE OPERATING SYSTEM FOR YOUR EVERYDAY LIFE WHEREVER YOU ARE GOING, WHATEVER YOU WANT TO GET DELIVERED, UBER WILL BE THERE FOR YOU.
I THING WE ARE STEADILY MOVING ALONG THE SUPER APP PATH, WHICH IS WHY WE ARE GAINING CATEGORY POSITION AGAINST COMPETITORS. BOTH MOBILITY AND DELIVERY WHILE DELIVERING MARGINS THAT ARE PROFITABLE AS WELL. EMILY: CURIOUS IF FREIGHT IS PART OF THE SUPER APP LAND. EVEN YOU POINTED OUT TODAY THAT THAT IS THE WEAKNESS IN THE BUSINESS, IT DOES SEEM TO BE A DRAG ON THE BUSINESS AND WHAT IS THE PLAN THERE? TO SALEK, TWO SPIN IT OFF? DARA: TO BUILD. FREIGHT IS SUFFERING FROM THE SAME KINDS OF TRANSIT YOU SEE IN -- TRENDS YOU SEE IN DELIVERY OF THINGS AND RETAIL GENERALLY IS A BIT WEAKER THAN SPEND ON SERVICES.
YOU SO YELLOW, BIG TRUCKING FIRM GO OUT OF BUSINESS, YESTERDAY. THERE'S A LOT OF DIFFICULTY IN TERMS OF FREIGHT AND FREIGHT RACE. FREIGHT IS FIGHTING HIS WAY THROUGH THAT BUT WE CONTINUE TO INNOVATE, EVEN TODAY THE WAY SHIPPERS CONNECT TO TRUCKERS IS INCREDIBLY OUT MODE IT, THE ROUTING, THE PRICING IS BASED ON TECHNOLOGY BUILT A 20 TO 25 YEARS AGO. AS WE CONTINUE TO INNOVATE AND AS WE CONTINUE TO FOCUS ON ALGORITHMIC PRICING, MAKING THE PERFECT MATCH BETWEEN A SHIPPER AND TRUCKER, WE THINK OVER A PERIOD OF TIME WE CAN BUILD AN ACID OF RATE VALUE. IT IS HEADS DOWN, THE TEAM IS
EXECUTING AN TOUGH ENVIRONMENT, LOSSES ARE DECREASING, WE THINK THE SECOND HALF WILL BE SIGNIFICANTLY BETTER THAN THE FIRST HALF, AND NEXT YEAR WE WILL GET BACK TO GROWTH. ED: THANKS TO EMILY CHANG IN THAT CONVERSATION WITH UBER'S CEO, DARA KHOSROWSHAHI. MORE AHEAD. STAY WITH US. THIS IS BLOOMBERG. ♪ ED: QUICK PIECE OF NEWS, ATOS IS IN NEWS TO SELL A LEGACY DIVISION TO A PRIVATE EQUITY FIRM RUN BY A CHECK BILLIONAIRE. THE COMPANY PLANS TO NEGOTIATE $110 MILLION IN CASH AND TRANSFER 1.9 BILLION IN DEBT TO
THE BUYER. THE PROPOSED DEAL FOLLOWS MONTHS OF STRUGGLE FOR THE FRENCH COMPANY AFTER ITS I.T. OUTSOURCING BUSINESS WAS SLOW TO ADAPT TO THE CLOUD. LET'S CAPITAL RAISED 1.5 -- LUX CAPITAL RAISED $1.5 BILLION TO FOCUS ON SCIENCE AND DEEP TECHNOLOGY SUCH AS ARTIFICIAL INTELLIGENCE, ROBOTICS, AND BIOTECH. FOR MORE ON HOW IT IS GOING, THE LUX CAPITAL GENERAL PARTNER.
THERE'S A DIFFERENCE BETWEEN THE BACKWARD LOOKING DATA AND THAT HEADLINES ON THIS PROGRAM ABOUT FUNDS BEING RAISED. SEEMS LIKE THE ENVIRONMENT IS GOOD. >> IT DEPENDS ON HOW YOU LOOK AT IT. THERE IS CERTAINLY A LOT OF DRY POWDER OUT THERE, AND FUNDS LIKE OUR -- HOURS ARE EAGER TO INVEST IN COMPANIES, ESPECIALLY AI, ACROSS A LOT OF CATEGORIES LIKE HEALTH CARE. WE BELIEVE THIS WILL BE ONE OF THE MOST EXCITING VINTAGES OF COMPANIES TO BE BORN YET. ED: HOW QUICKLY HAVE YOU GOT GOING SINCE APRIL? DEENA: WE HAVE BEEN VERY ACTIVE, ANNOUNCING NEW DEALS IN THE AI SPACE, IN BIO, INVESTING IN HEALTH CARE, MORE NEWS TO COME, SO WE HAVE BEEN DEPLOYING.
THE PIECE OF CAPITOL IS NOT WHAT IT WAS AT THE HEIGHT OF THE PERIOD OF EXUBERANCE AND THAT IS PROBABLY A GOOD THING. ED: YOU OR SOMEONE DEEPLY PENSIVE, WELL-CONNECTED IN GLOBAL SILICON VALLEY IS ONE OF THE BETTER EXPRESSIONS BUT, ON THE OTHERS OF THE TABLE, WHERE DOES THE ENERGY -- ARE THERE FOUNDER STARTING BUSINESSES IN THE SPACE YOU CARE ABOUT, ARE THEY TRYING TO KICK ON YOUR DOOR FOR A CHECK? DEENA: TO BE A FOUNDER IS SOMEWHAT IRRATIONAL, YOU HAVE TO HAVE THE SENSE OF OPTIMISM AND TO BE A FOUNDER IN THIS ENVIRONMENT, YOU HAVE TO BE EVEN MORE RESILIENT, HAVE EVEN MORE GREAT. IT IS AMAZINGLY INSPIRING TO SEE THE FOUNDERS COMING TO THE TABLE, TO SEE THE COMPANIES BORN OUT OF ACADEMICS, SPINOUTS, TO SEE AND CART WILL TALENT LAID OFF OR OTHERWISE UNLEASHED OUT THERE, BUILDING NEW COMPANIES. WE ARE SEEING AMAZING TALENT, CERTAINLY NOT EASY BUT THAT IS WHY WE WILL BE -- WE BELIEVE WE WILL BE MORE SUCCESSFUL THAN GENERATIONS PRIOR. ED: WE DISSENTER THE SECOND HALF OF THE YEAR, SOMETHING LIKE $6 BILLION OR 250 DEALS OR SO, HOW DOES THE SECOND-HALF LOOK IN THAT SPACE? I KNOW IT'S AN AREA YOU ARE FOCUSED ON AS AN INDIVIDUAL. BROADLY, HOW DOES IT LOOK? DEENA: IF YOU LOOK AT THE DATA, THERE WERE QUITE A FEW DEALS DONE BUT A LOT WERE DONE BY EXISTING INVESTORS COME AROUND THAT WERE OTHERWISE UNLABELED, MANY EXTENSION ROUNDS, COMPANIES REALLY KICKING THE CAN DOWN THE ROAD BEFORE RAISING A NEW ROUTE AND EVALUATION BECAUSE EVALUATIONS HAVE NOT CAUGHT UP TO WHERE PERHAPS INVESTORS THINK THEY SHOULD BE. AT SOME POINT, COMPANIES ARE
GOING TO HAVE TO RAISE AGAIN AND I HAVE TO SAY, DESPITE THESE HEADWINDS, THERE ARE SOME CATEGORIES LIKE WOMEN'S HEALTH WHERE YOU KNOW I SPEND A LOT OF TIME ARE CONTINUING TO SEE LOTS OF ACTIVITY AND INTEREST. ED: THE LUX CAPITAL THESIS IS TO LOOK AT CORNERS OF THE MARKET THAT HAVE BEEN OVERLOOKED AT THIS POINT BY INVESTORS BUT EXPLAIN TO THE AUDIENCE WHY THAT TRANSLATES TO AN OPPORTUNITY AS AN INVESTOR. DEENA: WE SAY WE LIKE TO BELIEVE BEFORE IT IS OBVIOUS. THAT IS WHAT ANY GOOD INVESTOR WANTS TO DO, OTHERWISE YOU ARE PAYING A HEFTY PRICE WHEN EVERYONE ALREADY KNOWS IT IS A GOOD INVESTMENT. WOMEN'S HEALTH IS ONE AREA WE HAVE BEEN DOING THAT FOR SOME TIME. WE DEPLOYED OVER 100 MILLION DOLLARS INTO THE SPACE INTO COMPANIES OF THE COMBINED VALUATION OF OVER $8 BILLION.
THERE ARE LATER STAGE COMPANIES WITH SERIES D WHERE WE CO-LEAD AN EARLIER STAGE COMPANIES INCLUDING ONES THAT WILL BE COMING TO LIGHT IN A FEW MONTHS. WE HAVE HELPED INCUBATE. WE ARE LOOKING AT FERTILITY, COMPANIES THAT ARE PROLONGING OVARIAN LONGEVITY AND DELAYING MENOPAUSE, COMPANIES AND IN FAMILY HEALTH AND PEDIATRIC SPACE, REALLY ACROSS-THE-BOARD, AN AREA THAT REPRESENTS NOT ONLY HALF THE POPULATION BUT WOMEN CONTROL OVER 80% OF THE DOLLARS IN HEALTH CARE SO I MASSIVELY UNDER INVESTED AND UNDERVALUED AREA. ED: WHERE GEOGRAPHICALLY IS THE INNOVATION HAPPENING IN THE SPACE? DEENA: WE ARE IN A POST-COVID WORLD SO WE ARE STILL SEEING IT ALL OVER THE WORLD. DEFINITELY THE COASTAL AREAS, LUX IS BICOASTAL SO WE SEE A LOT OF ENERGY IN NEW YORK, A LOT IN SILICON VALLEY BUT WE SEE INNOVATION OUT OF EUROPE, OUT OF VARIOUS OTHER PLACES AROUND THE COUNTRY, AND HOPEFULLY MORE TO COME FROM ELSEWHERE. ED: DEENA SHAKIR, SO GOOD TO CATCH UP IN PERSON.
A QUICKTIME FOR GOING VIRAL, WHICH JAMES DONALDSON IS NO STRANGER OF. BETTER KNOWN AS MR. BEAST, THE YOUTUBER IS -- HAS MORE THAN 170 MILLION SOME SCRUBBERS TO HIS CHANNEL, MAKING HIM THE MOST SUBSCRIBED INDIVIDUAL ON THE PLATFORM. THE SECOND MOST SUBSCRIBED CHANNEL OVERALL. IN 2020, HE PARTNERED WITH
VIRTUAL DINING AND BEGAN SELLING BURGER AND FRY COMBOS, TAPPING RESTAURANTS AND COMMERCIAL KITCHENS ACROSS THE COUNTRY, EXPERIENCING DOWNTIME THROUGH PANDEMIC ALSO KNOWN AS GHOST KITCHENS. THE YOUTUBE STAR IS SUING HIS PARTNER SAYING THE COMPANY SACRIFICE QUALITY IN ITS BID FOR RAPID EXPANSION. BEESE INVESTMENT SUED FOR BREACH OF CONTRACT ASKING A FEDERAL JUDGE IN MANHATTAN FOR THE RIGHT TO TERMINATE HIS BUSINESS RELATIONSHIP WITH VIRTUAL DINING CONCEPTS, A FLORIDA COMPANY COFOUNDED BY FORMER PLANET HOLLYWOOD EXECUTIVE ROBERT OUT. ANYONE ON SOCIAL KNOWS THIS -- KNOWS MR. BEAST AND WE WILL CONTINUE TO MONITOR THAT STORY. TWO DAYS IN, THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY."
DON'T FORGET YOU CAN RECAP EVERYTHING FROM TODAY'S EPISODE ON OUR PODCAST, WHEREVER YOU GET YOUR PODCASTS BUT WE ARE ON APPLE, SPOTIFY, I HARD, AND ALL OF THE BLOOMBERG PLATFORMS. WE ARE IN THE DEPTHS OF A TECH EARNINGS SEASON. HUBER, THE STORY OF THE DAY, LATER TO COME THIS WEEK, AMAZON AND APPLE. FROM SAN FRANCISCO, THIS IS "BLOOMBERG TECHNOLOGY." ♪
2023-08-02 15:41
