Bloomberg Technology 08/03/2023
>> FROM THE HEART OF WHERE MONEY, POWER INNOVATION CONVERGE, THIS IS BLOOMBERG TECHNOLOGY. ♪ ED: CAROLINE HYDE IS OFF TODAY AND THIS IS BLOOMBERG TECHNOLOGY. COMING, FULLER EARNINGS COVERAGE FROM QUALCOMM TO ETSY, EXPEDIA AND BEYOND. PLUS, WE SIT DOWN WITH AN EXCLUSIVE CONVERSATION WITH FLEX PORT AND ARE RYAN PETERSON WHO HAS JOINED FOUNDERS FUND AND WHERE HE WILL INVEST IN THE WORLD OF VENTURE CAPITAL. AND SUPERCONDUCTIVITY IS HAVING A MOMENT AND WE WILL EXPLAIN WHERE A POTENTIAL BREAKTHROUGH IN TECHNOLOGY HAS BEEN DRIVING BOTH EXCITEMENT AND CONTROVERSY. LET'S GET A QUICK LOOK AT THE MARKETS. WE ARE TREADING WATER WITH THE
TECHNOLOGY QUARTERS. THE NASDAQ IS FLAT AND EARNINGS ARE A BIG PART OF THE STORY BUT WE SEE A CELL OFTEN TREASURIES. THE YIELD ON THE U.S. 10 YEAR TREASURY IS THE HIGHEST
IN NINE MONTHS BUT THERE IS A CONCERN ABOUT THE COST OF BOTHER -- OF BORROWING. . THE PHILADELPHIA SEMICONDUCTOR INDEX IS SOFTER BY 0.3% AND A BIG PART OF THAT IS ALL COME WHICH IS DOWN BY 10%. WE WILL GET TO THAT SHORTLY. THE TWO BIG ONES WE ARE BRACED FOR, APPLE AND AMAZON REPORT AFTER THE BELL.
WE WILL LOOK AHEAD AND THINK ABOUT WHAT THE MACRO ENVIRONMENT FOR THOSE TWO NAMES BOTH FROM THE CONSUMER PERSPECTIVE AND THE CLOUD NARRATIVE. LASTLY, MICROSOFT SHOWED SLOWING GROWTH IN CLOUD WHICH IS THEIR BIGGEST DIRECT COMPETITOR AND DOES IT TRANSLATE TO AWS. EARNINGS ARE OUT AND WEIGHING ON MARCUS THIS MORNING. QUALCOMM IS DOWN 10% AND
CONCERN ABOUT THE GROWTH OUTLOOK FOR THEM. WE WILL TALK ABOUT THAT IN A MOMENT AND QUALCOMM IS DOWN 10% TRACKING ON A CLOSING BASIS FOR ITS BIGGEST DROP SINCE MARCH OF 2020. THIS IS THE BIGGEST MAKER OF SMARTPHONE PROCESSORS. IN A MARKET FOR SMARTPHONES
THAT IS HAVING ONE OF THE MOST SEVERE SLOWDOWNS FOR A LONG TIME AND IT CONTINUES. THE OUTLOOK THEY GAVE WAS WORRYING FOR THE CURRENT PERIOD. LET'S BRING IN IAN KING. WHAT WAS THE MAIN TAKEAWAYS FROM THEIR EARNINGS CALL? >> THE BIG FOCUS WAS WHILE THERE IS A SMARTPHONE INVENTORY CORRECTION, WE ARE STILL IN THAT CORRECTION.
EVERYBODY WAS HOPING THE CHINESE CONSUMER WOULD COME BACK AND THAT DOESN'T SEEM TO BE THE CASE. ED: YOU FORGET THAT IN CHINA, THERE ARE MANY DOMESTIC LAYERS WHO MAKE ANDROID PLATFORM PHONES. THE OTHER DATA POINT WE GET FROM QUALCOMM IS THIS FOR YOUR SHIPMENTS FORECAST. WHAT DID THEY SAY ABOUT 2023 RELATIVE TO LAST YEAR? >> IT'S A DOWN YEAR. WE ARE LOOKING HIGH SINGLE
DIGIT PERCENTAGES DOWN FROM A YEAR AGO. THAT CLEARLY INDICATES THAT NOT ONLY HAVE WE STILL GOT INVENTORY BUT ALSO CONSUMERS JUST AREN'T RUSHING BACK. ED: WHEN I THINK OF QUALCOMM, THE BIGGEST MAKER OF SMARTPHONE PROCESSORS, THE OTHER SIDE OF THEIR BUSINESS IS MODEMS. WE ARE ALWAYS ASKING QUESTIONS ABOUT THE FUTURE RELATIONSHIP BETWEEN QUALCOMM AND APPLE AND THE IPHONE.
WHAT DID THEY SAY ABOUT THAT? >> THIS ALWAYS COMES UP ON THEIR CALL. THEY HAD A MASSIVE LEGAL FIGHT AND APPLE WAS FORCED TO GO BACK TO THEM AND ASK FOR THEIR TECHNOLOGY. HE CONFIRMED THAT WHEN WE HAD THE NEW IPHONE LATER THIS YEAR, QUALCOMM WILL BE IN THEIR. THEIR MOTIVE WILL BE WHAT TAKES THE IPHONE3 INTO NEXT YEAR. IS THIS THE END OF THE SHOW? WILL APPLE DO THEIR OWN THING AS WAS REPORTED? HE REFUSED TO TALK ABOUT THAT SO THAT LEAVES OPEN THE POTENTIAL THAT MAYBE WE WILL SEE QUALCOMM IN THERE IN THE FUTURE. ED: WE ARE SHOWING OF WHAT
CHRISTIANE IS SAYING THE OTHER STANDALONE STORY WAS COST AT ANY MEASURES -- WAS COST-CUTTING MEASURES. >> THEY DIDN'T SAY EXPRESSLY ON THE CALL BUT THEY DELVED INTO THE FILINGS AS WE DID. DECIDE THEY HAD MORE THAN $200 MILLION OF SEVERANCE PAYMENTS IN THE PREVIOUS QUARTER AND THEY SAID THIS IS LIKELY GOING TO RECUR AGAIN IN THIS QUARTER SO CLEARLY, THEY ARE MOVING AROUND THEIR WORKFORCE. THEY SAID THEY WILL TRADE THEIR RESOURCES AND WHAT GETS THEM GOING IN THE FUTURE BUT THEY WILL PROBABLY SHED SOME JOBS IN OTHER PARTS OF THE COMPANY. ED: IT'S NOT JUST THE EARNINGS PRINT OR THE CALL BUT THE FILINGS AND THAT'S WHERE WE FIND THE DETAILS. THANK YOU VERY MUCH.
ETSY IS FALLING WITH AN OUTLET THAT FAILED TO REASSURE INVESTORS ON GROWTH. LET'S GET MORE ON THE EARNINGS. LET'S BRING IN THE EVERCORE ANALYST. YOU GOT AN OUTPERFORM CALL. WHAT WERE THE MAIN TAKEAWAYS FROM THAT EARNINGS PRINT? >> THANKS FOR HAVING ME. THERE WERE SOME POSITIVES BUT CLEARLY THERE ARE SOME NEGATIVES. PART OF THE REASON WHY THE SHARES MAY BE TRADING OFF IS THAT THERE WAS SOME RUN-UP INTO THE EXPECTATIONS OF MODEST CORRECTIONS IN ADDITION TO JUST A LOWER THAN EXPECTED DIE ON FUNDAMENTALS. IN TERMS OF THE TAKE AWAY ON
THE EARNINGS CALL, THERE IS THE FACT THAT BUYERS CAME IN AT AN ALL-TIME HIGH, THE SECOND QUARTER OF YEAR-OVER-YEAR GROWTH AND THE HABITUAL BUYER WHICH IS 45% OF THEIR GMS STARTED SHOWING SIGNS OF STABILIZATION. THAT'S A KEY METRIC. THE THIRD IS GMS PRODUCTIVE BUYER WHICH IS MORE OF A PURCHASE FREQUENCY PROXY AND SHOWED SIGNS OF STABILIZATION AND THAT IS ALSO A GREAT CONTRACT IN TERMS OF LOOKING AT IMPROVEMENT. ETSY IS A HIGHLY TO GRATIAN EVERY COMPANY AND THEY ARE STARTING TO SEE PRESSURE ON THE CONSUMER WALLET.
THEY DID SAY THAT HOUSEHOLDS THAT MAKE LESS THAN $100,000 IN INCOME ARE SEEING A SHIFT AND SPEND AWAY FROM DISCRETIONARY. THEY ALSO TALKED ABOUT SOME CATEGORIES LIKE HOME AND LIVING CRAFTS AND APPAREL BUT THERE ARE OTHER DISCRETIONARY CATEGORIES THAT ARE UNDER PRESSURE. THEY ALSO ARE TALKING JUST GENERALLY CONSUMER SPENDING BEING PRESSURE BECAUSE OF THE END OF THE STUDENT LOAN FORBEARANCE AS WELL AS THE CHILD TAX CREDIT. ALL OF THAT IS PRESSURING CONSUMER SPENDING.
THEY ARE HIGHLY SKEWED TOWARD THAT. ED: THINK ABOUT ETSY AS A TECHNOLOGY PLATFORM. THERE IS A PLACE WHERE THE CONSUMER MEETS SMALL RETAILERS ALL OVER THE COUNTRY AND ALL OVER THE WORLD AT DIFFERENT SIZES BUT WHAT IS IT THAT DIFFERENTIATES THEM FROM A TECHNOLOGICAL PERSPECTIVE? >> THERE ARE COUPLE OF THINGS. IT'S THE TYPE OF PRODUCT THEY OFFER ON THEIR PLATFORM. IT IS DIFFICULT TO CREATE A MARKETPLACE WITH A STICKY SET OF SELLERS. ALSO A STICKY SET OF BUYERS WERE COMING TO THE PLATFORM AT LEAST ONCE A YEAR IF NOT MORE ON A REGULAR BASIS.
THAT ITSELF IS LIKELY IN A BOTTLE. IS DIFFICULT TO REPLICATE AT SCALE. NOW THEY HAVE OVER 90 MILLION IMPACTED BUYERS OF THAT'S THE SCALE IN THE CORE MARKETS. SECOND IS THE UNIQUENESS OF THE
PRODUCTS THAT ARE OFFERED. OFTEN TIMES LIKE WITH AMAZON OR EBAY BUT THEY KNOW WHAT THEY STAND FOR. IT IS NOT THE TYPICAL COMMODITIZED PRODUCT YOU CAN COMPARE PRICES ACROSS DIFFERENT PLATFORMS WHETHER IT'S OFFER ONLINE. IT'S REALLY A UNIQUE CUSTOM ITEM THAT YOU WANT WHICH IS SPECIAL WHICH MEANS SOMETHING TO THE CUSTOMERS ACROSS DIFFERENT CATEGORIES. THEY HAVE CREATED A PLACE FOR THEMSELVES IN THAT SORT OF E-COMMERCE CATEGORY.
THAT IS UNIQUE ABOUT THEM AND THE OTHER THING ABOUT THE TECHNOLOGY IS WHEN YOU THINK ABOUT WHERE ETSY WAS AND WHERE IT CAME FROM, SEVERAL YEARS AGO, THEY DIDN'T HAVE THE TEAM THEY HAVE TODAY. THIS IS A TRULY TURNAROUND STORY AND A HUGE REASON WHY IS BECAUSE WHAT THEY DID TO THE PRODUCT. THE USER EXPERIENCE IS PHENOMENALLY BETTER AND THE SEARCH EXPERIENCE IS SO MUCH BETTER. THEY ARE CONSTANTLY ITERATING ON IT TO DRIVE USER EXPERIENCE AND ENGAGEMENT ON THEIR PLATFORM. SO FAR, THEY HAVE DONE A GREAT JOB. ED: THE FIFA WOMEN'S WORLD CUP IS ON NOW AND THAT'S GOT US THINKING ABOUT FUBAR TV REPORTING BEFORE FRIDAY.
THEY ARE TEENY TINY BUT THEY ARE IN IS HER THING PLATFORM AND THEY STAND OUT IN THE MARKET. >> THEY DO, WE THINK THEY DO HAVE PROFITABILITY ISSUES. THIS WAS AN ASSET AND THE BUSINESS WHEN BUSINESSES WERE GIVEN CREDIT FOR JUST DRIVING TOPLINE GROWTH AT THE COST OF THE BOTTOM LINE. THAT NO LONGER HOLDS TRUE.
WE ARE NOT ONLY DO THEY HAVE COMPETITORS BIGGER THAN THEM BUT THEY ALSO ARE FOCUSED ON REINING AND THERE TOPLINE GROWTH SO THEY CAN MAKE IT PROFITABLE. THEY ALSO HAVE DEBTS THEY NEED TO THINK ABOUT AND THEY HAVE LIMITED LIQUIDITY. SO THEY ARE TRYING TO NOT HAVE A CAPITAL RATE AND BECOME SELF-SUSTAINING AND WHILE THEY DO THAT, THEY ALSO HAVE TO SHOW TOPLINE GROWTH. THAT IS THE BIGGEST CHALLENGE THEY HAVE AND THAT'S WHY THEY ARE ON THE SIDELINE. THEY TYPICALLY GUIDE CONSERVATIVELY. THE TV ENGAGEMENT HAS BEEN GOING UP. WE SAW A PRETTY GOOD BEAT AT
ROKU, FOR EXAMPLE. OVERALL, THE DEMAND FOR LIVE SPORTS BECAUSE OF THE WRITERS STRIKE, VIEWERS ARE SHIFTING A LITTLE BIT TOWARD LIVE SPORTS AS WELL AS NEWS BECAUSE OF THE LACK OF CONTENT BY THE HOLLYWOOD WRITERS STRIKE. THAT SHOULD BENEFIT THEM ULTIMATELY. I EXPECT A BEAT AND A BRACKET SORT OF A QUARTER BUT FUNDAMENTALLY, THIS IS AN ASSET THAT HAS A BIG QUESTION IN TERMS OF THE LONGEVITY OF THE BUSINESS. ED: THAT CONSUMER BEHAVIOR QUESTION IS WHERE I WANTED TO GO.
I SUBSCRIBE TO EVERY PLATFORM UNDER THE SUN. I LOVE ALL SPORTS BUT YOU CAN GET WHAT YOU GET ONFUBO ELSEWHERE AS PART OF A GROUP -- A BROADER PACKAGE. HOW DO THEY SURVIVE IN THAT LANDSCAPE? IT'S SO CROWDED AND WHEN YOU HAVE A TOUGH MACRO ENVIRONMENT, CONSUMERS HAVE TO MAKE A CHOICE. >> THAT'S ABSOLUTELY TRUE. THE VALUE PROPOSITION IS AT THE MARGIN, THEY HAVE SOME EXCLUSIVITY ON COMMENT. LIKE REGIONAL SPORTS, YOU CAN FIND ONLY ON FUBO. AT THE MARGIN, THERE IS SOME EXCLUSIVE CONTENT. THE SECOND THING IS ALSO JUST
THE USER ENGAGEMENT. FUBO WAS BUILT POST THIS CONNECTED TV SO THEIR PRODUCT IS NEW AND IT'S NOT ARCHAIC AND IT'S EASY TO USE AS WELL AS EASY TO NAVIGATE. THAT'S ANOTHER REASON WHY VIEWERS ARE CHOOSING FUBO OR SOME UP -- OVER SOME OF THE OTHER PLATFORMS. THE THIRD THING IS THAT THEY HAVE CREATED
A BRAND NAME AROUND THEMSELVES WERE ALMOST ALL VIEWERS VIEW THEM AS A SPORTS FIRST OFFERING. IT'S GOOD BRANDING ON THEIR PART BUT IT'S MARGINALLY EXCLUSIVE CONTENT BUT SPORTS FIRST IS WHERE THEY OFFER A LOT OF ENGAGING USER EXPERIENCES WHEN YOU WATCH FOOTBALL AND THAT'S A DRAW FOR THEM. ED: MESSY MANIA HAS HIT THIS COUNTRY AND THE STREAMING ISSUE. WE LOVE HAVING YOU ON THE SHOW,
THANK YOU. >> THANKS FOR HAVING ME. ED: COMING UP, CANADIAN ONLINE RETAILER SHOPIFY MAKING ATTEMPTS TO REFOCUS ITS CORE BUSINESS. OUR CONVERSATION WITH ITS PRESIDENT NEXT. WE TALKED ABOUT IT, THE BIG ONES AFTER THE BELL, AMAZON AND APPLE TO REPORT EARNINGS IN THE STORY FOR AMAZON IS AWS AND CLOUD AND APPLE IS SET TO REPORT ITS THIRD SEQUENTIAL YEAR ON YEAR DECLINE IN REVENUES,, THE WORST STRAIGHT BACK TO 2019. DOES THE IPHONE COME TO THE RESCUE? THIS IS BLOOMBERG TECHNOLOGY.
♪ ♪ ED: SHOPIFY MADE PROGRESS IN ITS ATTEMPT TO PRIORITIZE ITS CORE BUSINESS AFTER COST-CUTTING AND PRICE CHANGES. THE CANADIAN E-COMMERCE GIANT -- PROVIDED SECOND-QUARTER ESTIMATES THAT BEAT EXPECTATIONS. THE RESULTS SPEAK TO THEIR EFFORT TO IMPROVE SHIPPING AND EXPAND ITS GLOBAL MERCHANT BASE. WE ARE JOINED BY THE PRESIDENT. A BEAT IN THE QUARTER, SOMEWHAT NEGATIVE SHARE REACTION AND MORGAN STANLEY RAISED ITS PRICE TARGET ON THE STOCK TO $59 BUT THEY POINT OUT THAT WHAT WAS MISSING WAS A ROADMAP FOR INVESTORS TO UNDERSTAND HOW YOU'RE GOING TO GROW IN THE FUTURE. LET'S START THERE, HOW ARE YOU GOING TO GROW IN THE FUTURE? >> YOU STARTED BY TALKING ABOUT OUR ANNOUNCEMENT LAST QUARTER WHEN WE REPORTED ON Q1 AND WE TALKED ABOUT THAT WE ARE CREATING A NEW SHAPE OF MARKETING TO MAKE SURE WE CAN GO FASTER WITH GREATER TALENT FOR FOCUS ON HER MAIN QUEST WHICH IS COMMERCE SOFTWARE AND RETAIL SOFTWARE.
THE RESULTS EXEMPLIFY THAT AND WE WILL USE UP TO 31%, GME'S WAS UP TO $55 BILLION. THE THING THAT PEOPLE MISSED IS WE ARE ALSO EARNING MORE PARTS OF MERCHANT BUSINESS. WE USE THE PRODUCT ATTACH RATE WHICH MEASURES THE USAGE OF OUR PRODUCTS BY ERA MERCHANTS AND THAT WAS ABOVE 3% FOR THE SECOND TIME. ALL THAT WE ALSO HAVE THE THIRD CONSECUTIVE QUARTER OF POSITIVE FREE CASH FLOW ME EXPECT FREE CLASH -- FREE CASH FLOW PROFITABILITY IN THE THIRD QUARTER TO BE GREATER THAN THE ENTIRE FIRST HALF. IN TERMS OF THE FUTURE AND WHAT WE ARE LOOKING TO DO NEXT, WE NOW KNOW THAT MOST PEOPLE CONSIDERING STARTING A BUSINESS DO SO WITH SHOPIFY. PEOPLE THAT HAVE IDEAS IN THE SHOWER IN THE MORNING, SHOPIFY IS THE GO TO FOR THEM. NOT ALWAYS SUCCEED BUT THE ONES
THAT COME TO SHOPIFY AND STAY, THAT'S THE JIM SHARK STORY, THESE HOMEGROWN SUCCESS STORIES. WE ARE ALSO SEEING LARGE BRANDS COMING TO SHOPIFY AS WELL WHETHER HIS COMPANY LIKE MATTEL OR STAPLES. WE ARE SEEING THE ENTERPRISE COME TO US AS WELL. THE SECOND THING IS WHEN YOU LOOK HORIZONTALLY THROUGH OUR MERCHANT SOLUTIONS WHETHER IT'S PAYMENTS ARE CAPITAL OR AUDIENCES WHICH HELP TO BUY ADS MORE FOR EFFECTIVELY WITH THINGS LIKE COLLECTIVE, WE ARE LOOKING ACROSS EVERY PAIN POINT A MERCHANT MAY HAVE.
WE WERE TALKING ABOUT OFFLINE EARLIER. IN SHOPIFY, IT POWERS 10% OF U.S. E-COMMERCE RETAIL WHICH MEANS IF WE WERE A RETAILER, WE WOULD BE THE SECOND LARGEST RETAILER IN AMERICA.
THAT MEANS WE CAN NOW GET INCREDIBLE ECONOMIES TO SCALE AND GIVE THEM TO THE MILLIONS OF STORES THAT YOU SHOPIFY. WE ARE OPTIMISTIC ABOUT THE FUTURE. ED: I UNDERSTAND THE STORY. THE PRIMARY ENGINE AND BUSINESS FORMATION AND THOSE NEW BUSINESSES STAY WITH YOU FOR A LONG TIME. WHAT HAPPENED IN A RECESSION WHEN NEW BUSINESSES ARE NOT FORMS? >> FIRST OF ALL, EXISTING BUSINESSES LOOK TO ONE MODERNIZED TECHNOLOGY SOFTWARE THEY USE AND THEY LOOK TO FIND THE BEST VALUE IN THE SOFTWARE THEY USE. THAT IS SHOPIFY. FOR $39 A MONTH, YOU CAN BUILD A MULTIMILLION DOLLAR OR MULTIBILLION DOLLAR COMPANY.
THE VALUE TO COST RATIO IS SO FAR ON THE SIDE OF VALUE THAT EVEN IN TIMES OF RECESSIONARY PRESSURE, WE HAVE SEEN MORE AND MORE MERCHANTS MIGRATE TO SHOPIFY. THE SECOND THING IS ON THE CONSUMER SIDE. WHAT WE SEE IN THE GM V THIS QUARTER, WE SAW $55 BILLION IN SHOPIFY. CONSUMERS IN THESE RECESSIONARY TIMES BUY DIRECT FROM THE BRANDS THEY CARE ABOUT THEM AND ALL OF THOSE BRANDS ARE IN SHOPIFY AS WELL. FROM A MERCHANT SIDE AND A CONSUMER SIDE CAN WE THINK WE'VE BEEN AROUND FOR ALMOST TWO DECADES NOW, WE HAVE SEEN WE DO WELL IN BOOM AND BEAR CYCLES. WE WILL CONTINUE TO DO THAT. ED: CAN YOU QUANTIFY THE EXPOSURE
THAT SHOPIFY HAS TWO NEW BUSINESS VERSUS I SUPPOSE ESTABLISHED ONLINE MERCHANTS? >> THAT'S THE BEST PART. WE CAN DO BOTH. YOU CAN START WITH AN IDEA IN THE MORNING AND YOU CAN BUILD A STORE ON SHOPIFY IN A COUPLE OF HOURS FOR $39. WE SEE THAT HAPPENING EVERY SINGLE DAY. AT THE SAME TIME, WE ARE SEEING MUCH LARGER BRANDS MIGRATE TO SHOPIFY AS WELL.
THEY COME UNTO US TO LEVERAGE THIS ENTERPRISE SCALE SOFTWARE. THAT IS THE GREAT PART OF THE BUSINESS MODEL. IT IS NOT SIMPLY ONE SEGMENT OF THE MARKET. IT'S THE ENTIRE E-COMMERCE STACK. WHEN YOU THINK ABOUT THE FUTURE OF RETAIL, WE HAD AN INCREDIBLE QUARTER.
WE ARE NOW REPLACING OLD, DILAPIDATED TRADITIONAL POINT-OF-SALE SYSTEMS WITH SHOPIFY POINT-OF-SALE. YOU END UP WITH THE FUNDAMENTAL RETAIL OPERATING SYSTEM THAT'S WHAT MODERN RETAILERS WANT. THEY WANT A SINGLE PLACE WHERE THEY HAVE AN ENTIRE VIEW OF THEIR BUSINESS REGARDLESS OF SALES CHANNELS. THE PREVIOUS GUEST TALKED ABOUT
ETSY BEING IS GREAT SALES CHANNEL. YOU CAN PUSH CHANNELS FROM SHOPIFY TO ETSY AND INSTAGRAM AND OFFLINE EVERYWHERE BUT IT ALL FEEDS BACK INTO ONE CENTRALIZED RETAIL OPERATING SYSTEM AND THAT IS THE SHOPIFY PRODUCT. ED: THERE IS A RELATIONSHIP BETWEEN SHOPIFY AND AMAZON WHICH IS REPORTING AFTER THE BALANCE FOCUS ON FULFILLMENT. A LOT OF FOLKS WANT TO UNDERSTAND WHAT PROGRESS IS THERE COME OF THE RELATIONSHIP OF AMAZON AND SHOPIFY.
TOO MANY IT'S BEEN A SLOW MOVER. >> I SAID THIS ON THE CALL YESTERDAY, WE ARE STILL PROGRESSING THERE. WE HAVE NOTHING TO REPORT AND THAT JUST YET. ED: UNDERSTOOD. WE STARTED TALKING ABOUT THE COST CUTS YOU MADE CAN, PARTICULARLY IN THE CONTEXT OF PROFIT AND THE ROADMAP, A LACK OF ROADMAP FOR FUTURE GROWTH.
EXCUSE ME, COST CUTS CONTINUE OR WILL YOU START INVESTMENT MODE AGAINST TO START GROWING THE BUSINESS? >> THE IMPORTANT PART TO UNDERSTAND ABOUT SHOPIFY'S WE HAVE ALWAYS BEEN VERY THOUGHTFUL ON SPENDING AND HAVE SPENT IN A VERY DISCRETE FASHION. WE WERE NOT RAISED ON VENTURE CAPITAL LIKE OUR PEERS SO FROM THE EARLY DAYS, WE ALWAYS MADE SURE WE STRETCH EVERY DOLLAR. SPENDING WILL HAPPEN BUT IN A VERY DISCIPLINED FASHION.
WHAT WE ARE SEEING IS THAT WHILE OPTICS REMAINED STABLE, REVENUE WILL CONTINUE TO GROW WHICH IS UP EARLY 1% YEAR ON YEAR. WHEN WE SEE OPPORTUNITIES WHERE WE CAN ACTUALLY HAVE INCREDIBLE RETURNS ON THINGS LIKE OFF-LINE MARKETING AND POINT-OF-SALE OR THE COST OF CUSTOMER ACQUISITION PROFILES, THEY LOOK IN LINE WITH AN OPTIMAL RATIO. WE WILL TAKE THOSE AND WE WILL SPEND THEIR BUT WE WILL ALWAYS DO SO IN AN INCREDIBLY DISCIPLINED FASHION. IN TERMS OF THE TEAM SIZE, WE WANT TO MAKE SURE WE RETAIN THE BEST AND THE BRIGHTEST ON SHOPIFY.
WE LIKE THE SIZE OF THE COMPANY RIGHT NOW IN WEEKS PAID THE -- WE EXPECT THE HEAD CAN'T REMAIN CONSISTENT AND WE DON'T EXPECT TO UNDO ANYTHING FROM LAST QUARTER BUT WE WANT TO MAKE SURE THE BEST AND BRIGHTEST COME HERE AND STAY HERE. ED: SHOPIFY PRESIDENT HARLEY FINKELSTEIN. THANK YOU. COMING UP ON THE SHOW, A NEW HIGH SCORE FOR NINTENDO FOR THE RELEASE OF NEW SUMMER GAMES. YOU KNOW THE TITLE I'M TALKING ABOUT AND AN EARNINGS RECAP IS COMING UP NEXT.
WATCHING SHARES OF DOORDASH WITH RECORD NUMBERS OF DELIVERY ORDERS IN THE SECOND QUARTER, CONSUMER COMMITMENT TO TAKE OUT DESPITE THE RISING PRICES, SHARES ARE UP. THIS IS BLOOMBERG TECHNOLOGY. ED: TIME FOR TALKING TECH -- NINTENDO HIT A NEW HIGH FOR A FIRST FOR-PROFIT AFTER THE SUCCESSFUL LAUNCH TO ITS LATEST LEGEND OF ZELDA. THE GAME HAD SALES OF THE SWITCH CONSOLE AND THE SUPER MARIO BROTHERS MOVIE TRIPLED THEIR LICENSING. THEY REPORTED A PROFIT OF 1.3 MILLION DOLLARS, BEATING
EXPECTATIONS. INVESTORS CONTINUE TO PILE INTO KOREAN STOCKS RELATED TO SUPERCONDUCTORS AND MAKE CLAIMS OF BREAKTHROUGHS INTACT. WE WILL TALK ABOUT THE LATER IN THE SHOW AMID SOME DEVELOPMENTS. JUUL SEEKING TO RAISE ABOUT $1 BILLION. IT ALMOST WENT BANKRUPT LAST
YEAR AND IS WORKING WITH JEFFRIES FINANCIAL GROUP ON THE FUNDRAISING EFFORT. VALUATION IN THE ROUND REMAINS UNCLEAR BUT IT'S EXPECTED TO BE DRAMATICALLY LOWER THAN THEIR $38 BILLION IT WAS WORTH IN 2018. COMING UP, TRAVELING WITH AI, WHAT IT MEANS AT THE TRAIL -- TAIL END OF TRAVEL SEASON WITH THE CEO OF EXPEDIA, PETER KERN.
THIS IS BLOOMBERG TECHNOLOGY. ED: WELCOME BACK TO BLOOMBERG TECHNOLOGY. WE ARE LOOKING AT SHARES OF EXPEDIA, NOW DOWN 17%. IT'S ON TRACK FOR ITS BIGGEST DROP SINCE MARCH OF 2020. THERE ARE SOME CONCERNS ABOUT TOPLINE GROWTH AND SECOND QUARTER PROFIT WAS ABOVE FORECAST AND WE ARE ENTERING THE KIND OF TAIL END OF THE SUMMER TRAVEL SEASON.
JOINING ME NOW IS THE EXPEDIA CEO PETER KERN. WE HAVE TO START WITH THE REACTION. THE STOCK IS DOWN 17%. IS THE CONCERN FROM THE MARKET JUSTIFIED ABOUT THE GROWTH TRAJECTORY OF YOUR COMPANY? >> NO, ABSOLUTELY NOT. WE DELIVERED WHAT WE TOLD THE MARKET WE WOULD DELIVER AND JUST PAST THE QUARTER, WE LOST OUR BIG REWARDS PROGRAM WHICH -- WITH HUGE TECHNICAL INVESTMENTS AND REAFFIRMED OUR YEARLY INVESTMENTS ARE NOT SURE WHAT THE MARKET WAS LOOKING FOR. MAYBE THEY WERE LOOKING ABOUT CONCERNS FOR THE CONSUMER BUT WE WERE ON OUR PLAN AND EXCITED ABOUT THE BACK HALF OF THE YEAR. OTHER THAN THE CHART BEHIND ME, WE ARE EXCITED ABOUT WHERE WE ARE. ED:
HOW DO YOU SEE THIS TRAVEL SEASON HAVING PLAYED OUT AND WHAT ARE THE SIGNS FOR THE REST OF THE YEAR AND THE HEALTH OF THE CONSUMER? >> WHEN WE LOOK AHEAD, ERROR PACING FOR THE YEAR IS UP VERSUS LAST YEAR AND PRIOR PERIODS. WE HAVE HAD VERY GOOD INTEREST IN INTERNATIONAL TRAVEL. YOU'VE SEEN THE TRAVELERS MOVING AROUND A BIT SO YOU SEE POCKET THAT MIGHT BE RETREATING BUT OTHER POCKETS ARE ADVANCING. ASIA IS STRONG AND LATIN AMERICA AND THE WEST, THE U.S. NORTH AMERICA AND WESTERN EUROPE HAVE SLOWED SOMEWHAT THAT THEY BEEN STABLE. BASICALLY, CUSTOMERS ARE MOVING AROUND AND CITIES ARE POPULAR NOW. INTERNATIONAL TRAVEL HAS
DEFINITELY ECLIPSED DOMESTIC. IT'S SORT OF THIS EXTENSION OF COVID. PEOPLE GO OVER THE NEXT THING OPENS UP OR WHERE THEY HAVEN'T BEEN ABLE TO GO. DOMESTIC WAS BIG THAN INTERNATIONAL AND NOW AGES OPENING UP. WE SEE IT IN -- AND NOW ASIA IS OPENING UP. DEMAND REMAINS HIGH AND THERE IS NOT MUCH EVIDENCE REALLY OF ALL OFADR PRICE DROPS.
YOU CAN FIND DOMESTIC AIR IN NORTH AMERICA HAS COME DOWN A LITTLE BUT IN INTERNATIONAL AIR, THEY ARE STILL ELEVATED. HOTELS GENERALLY HAVE BEEN STABLE. THERE REALLY ISN'T MUCH EVIDENCE OF A CONSUMER LAPSE HERE. ED:
YOU ARE JOINING US FROM LONDON. YOU ARE SITTING IN THE CHAIR I USED TO SIT IN WHEN I WAS THERE. IT'S A NICE CHAIR. IS THERE A DIFFERENTIATION BETWEEN THE HEALTH IN DIFFERENT MARKETS OF THE LONDON CONSUMER, THE EUROPEAN CONSUMER AND WHAT WE SEE IN THE UNITED STATES? >> I THINK THERE IS A LOT OF PEOPLE FROM THE UNITED STATES IN LONDON RIGHT NOW. EUROPE HAS BEEN A POPULAR DESTINATION FOR NORTH AMERICAN TRAVELERS THIS SUMMER BECAUSE LAST SUMMER, THEY WERE NOT TRAVELING AS MUCH INTERNATIONALLY. NOW EVERY CITY IN EUROPE IS FULL OF AMERICANS AND LIKEWISE EUROPEAN TRAVELERS ARE TRAVELING TO OTHER INTERNATIONAL CITIES. YOU ARE SEEING A LOT OF THAT BUT THE HEALTH OF THE CONSUMER IS STRONG. WE STILL HAVEN'T SEEN IT EVEN
AT THE LOWER END. IT DOESN'T MEAN YOU CANNOT FIND A POCKET OF A CITY OR DESTINATION THAT IS SLIGHTLY LOWER, FOR EXAMPLE MOUNTAIN DESTINATIONS, BEACH DESTINATIONS ARE SLIGHTLY LESS POPULAR THIS YEAR IN FAVOR OF BIG INTERNATIONAL CITIES. IT DOESN'T MEAN THE TRAVELER IS LESS WILLING TO TRAVEL OR SPEND, IT MEANS THERE MOVING THEIR DOLLARS AROUND THE NECK CREATES SMALL POCKETS WHERE YOU MIGHT SEE REDUCED INTEREST. THAT'S FROM SUPERHIGH ELEVATED INTEREST ACROSS MOST OF THESE MARKETS. THIS IS A SLIGHT TAMING IN A FEW SPOTS AND STRENGTHENING AND OTHER SPOTS THAT MAKE UP FOR IT. ED: YOU'VE BEEN DOING SOME
INVESTMENT IN TECHNOLOGY WITH STREAMLINING BEHIND THE SCENES FOR THE LOYALTY AND REWARDS PROGRAM. HOW DO YOU SEE THAT DRIVING YOUR BUSINESS IN THE NEAR TERM BUT THE LONGER TERM AS WELL? >> IT'S A HUGE INVESTMENT FOR US. WE HAVE INVESTED OVER THE LAST FEW YEARS TO BRING ALL OF OUR STACKS TOGETHER, ALL OF OUR BRANDS TOGETHER ON ONE TECHNOLOGY SO WE CAN GO FASTER AND INNOVATE FASTER FOR THE CONSUMER. OUR NEW LOYALTY ROYA -- ROLLOUT IS AN EXAMPLE THAT COMING TOGETHER. NOW ARE A BIG THREE BRANDS ARE
UNDER ONE LOYALTY PLATFORM. PEOPLE CAN EARN REWARDS WHICH IS LIKE MONEY, SPEND IT ON ANYTHING THEY WANT TO CROSS THOSE BRANDS. IT'S THE COMBINATION OF A BUNCH OF WORK THAT'S BEEN GOING ON FOR MORE THAN TWO YEARS TO REALLY CHANGE OUR FUTURE.
THE IDEA IS SIMPLE WHICH IS WE WANT TO BUILD THE BEST PRODUCTS THAT CONSUMERS ARE LOYAL TO AND GET THEM INTO OUR LOYALTY PLANS AND GET THEM ON THE PATH WHERE THEY CAN HAVE THE BEST EXPERIENCE AND SEE THE MOST DISCOUNTS AND REWARDS FOR THE TRAVEL AND THAT WILL CREATE A STICKY RELATIONSHIP WITH OUR CONSUMERS AND THEY WILL COME BACK DIRECT TO US. WE THINK THERE IS A HUGE OPPORTUNITY FOR INNOVATION IN TRAVEL AND WE THINK WE ARE DOING THE MOST WITH TECHNOLOGY AND AI AND MACHINE LEARNING TO PERSONALIZED ALL OF THOSE PIECES TO CREATE THE NEXT STEP FORWARD. WE INVENTED THE CATEGORY AND WE ARE TRYING TO REINVENT THE CATEGORY FOR THE NEXT DECADE OR TWO WITH NEW PRODUCT, BETTER CONSUMER PROPOSITION AND A MUCH STICKIER, LESS TRANSACTIONAL KIND OF PRODUCT THAT TRAVEL USED TO BE. ED:
IN THE META-EARNINGS, WE SAW EVIDENCE THAT AI RECOMMENDATIONS BOOSTED THEIR AD SALES. GIVE ME SOME TANGIBLE EXAMPLES OF HOW ARTIFICIAL INTELLIGENCE AIDS THE CONSUMER ON YOUR PLATFORM BUT ALSO HELP YOU MAKE MORE MONEY. >> WE USE IT REALLY EVERYWHERE WE CAN. THAT DOESN'T MEAN EVERYWHERE YET BUT THROUGHOUT THE PRODUCT, EVERYTHING FROM OPTIMIZING THE PICTURES YOU SEE. YOU MIGHT BE TRAVELING WITH A FAMILY OR KIDS AND IT WILL SHOW YOU POOLS OR MAYBE YOU'RE TRAVELING BY YOURSELF ARE A COUPLE OF WE SHOW YOU BARS OR ROOMS OR OTHER THINGS.
WE OPTIMIZED THAT AND WE OPTIMIZE HOW YOU SEARCH THEM USE MACHINE LEARNING TO BETTER MOVE THE PIECES AROUND THE PAGE SO YOU SEE THE THINGS MOST RELEVANT TO YOU MOST EASILY. OR TO SIMPLIFY HOW YOU SHOP. SOME ROOMS ARE CALLED A QUEEN-SIZE SUPERIOR IN SOME ROOMS ARE CALLED THE KING-SIZE CITYVIEW. WE'VE DONE THE WORK TO COMPARE THOSE THINGS SO YOU CAN EASILY SEE THEM SIDE-BY-SIDE AND UNDERSTAND USING AI WHAT THE OPTIONS REALLY MEAN AND WHAT THE DIFFERENCES ARE. WE ARE USING IT AND ALL KINDS OF SIMPLE AND ELEVATED WAYS.
WE ALSO PUT CHATGPT INTO OUR ILS APP SO WE GIVE PEOPLE THAT UTILITY AND WE SAY PRODUCTS THEY'VE LOOKED AT AND COMPARE THEM LATER. THERE IS LOTS OF PLACES WHERE WE USE OF THE SOME OF THEM ARE QUITE SIMPLE AND STRAIGHTFORWARD LIKE PERSONALIZED SEARCH AND SOME OF THEM ARE THE LATEST LARGE LANGUAGE MODELS AND THOSE OPPORTUNITIES AHEAD OF US. ED: THE EXPEDIA CEO PETER KERN, THANK YOU FOR YOUR TIME. LET'S WATCH AURORA INNOVATION
WHICH RAISED THE BETTER PART OF $1 BILLION, THE SELF-DRIVING COMPANY IS WORKING WITH CAR COMPANIES TO OPERATIONALIZE SELF-DRIVING SEMI TRUCKS BUT ALSO CONSUMER VEHICLES. THE STOCK IS DOWN 0.7% BUT HAD BEEN UP EARLIER THIS SESSION. THEY HAVE SHRINKING LOSSES AND JOINING US IS THE AURORA CEO. IT'S GOOD TO SEE YOU IN PERSON AGAIN.
>> ED: ED: IT'S BEEN A WHILE. LET'S START WITH $820 MILLION OR SO. HOW HAVE YOU EXPLAIN TO INVESTORS HOW YOU WILL USE IT? >> IT IS KIND OF INCREDIBLE TO RAISE THAT MONEY IN THIS ENVIRONMENT. IT'S A STRONG VOTE OF CONFIDENCE FROM THE INVESTMENT COMMUNITY. IT'S ABOUT DELIVERING OUR PRODUCT. NEXT YEAR, WE EXPECT TO HAVE TRUCKS ON THE ROAD WITH NOBODY IN THEM AND CAN CAN -- AND CAN COMMERCIAL AIDED AUTOMATED TRUCKING. ED: YOU WANT TO PUT THEM IN SEMI
TRUCKS WITH A SAFETY DRIVER. EXPLAIN THE PATHWAY TO MAKING MONEY ON A BUSINESS LIKE THAT. THE FRUSTRATION IS UNDERSTANDING THE APPLICATION OF THE TECH IN THE REAL WORLD. >> WE HAVE THE OPPORTUNITY OF HAVING A PRODUCT THAT WILL HAVE INCREDIBLE IMPACT FOR OUR CUSTOMERS. WE CAN HELP THEIR TOPLINE AND DRIVE DOWN THE BOTTOM LINE.
IF YOU ARE A TRUCKING COMPANY TODAY, YOU THINK ABOUT HOW MUCH MONEY I CAN MAKE PER TRUCK AND YOU ARE LIMITED BASED ON THE FACT THAT PEOPLE ARE LIMITED TO DRIVE TRUCKS 11 HOURS PER DAY. WITH THE AURORA DRIVER, WE CAN DRIVE TWICE AS MUCH SO YOU CAN DOUBLE THE REVENUE PER TRUCK WHILE MAKING IT EASIER TO HAVE DRIVERS BY MAKING IT SAFER ON THE ROAD AND IMPROVING PERFORMANCE. ED: WE HAVE SEEN THIS INDUSTRY CONSIDER HIS LONG-TERM MODE AND REEVALUATING ITS TRUCKING BUSINESS AND REFOCUSED ON THE PASSENGER VEHICLE. HOW DO YOU VIEW THAT SPLIT? DO YOU WANT TO DO BOTH OR JUST FOCUS ON THE TRUCKING BUSINESS? >> WE'VE BEEN BUILDING DRIVERLESS FROM DAY ONE. WE WILL FOCUS ON TRUCKING FIRST BUT WE HAVE AN INCREDIBLE PARTNERSHIP WITH TOYOTA AND UBER FOR THE LONG-TERM. WE SEE TRUCKING IS A REALLY GREAT WAY TO BUILD A BUSINESS BECAUSE THE OPPORTUNITY IS SO CLEAR AND PRESENT.
THE MARKET IS ABOUT 10 TIMES BIGGER THAN THE RIDE HAILING MARKET AND THE ECONOMICS ARE MUCH STRONGER. FOR A NEW TECHNOLOGY, THAT'S WHAT YOU ARE LOOKING FOR, A BUSINESS WHERE YOU CAN GROW INTO IT AND BE PROFITABLE QUICKLY. ED: THERE IS A PARTNERSHIP BETWEEN THE TWO OF YOU. EXPLAIN TO THE CONSUMER WATCHING THE SHOW THE FUTURE OF WHAT UBER USING AURORA TECHNOLOGY LOOKS LIKE.
>> A NUMBER OF YEARS AGO, WE WERE FORTUNATE TO ACQUIRE SELF-DRIVING CAR BUSINESS AND THAT WAS THE FOUNDATION ON WHICH A PARTNERSHIP HAS BEEN BUILT. THEIR BUSINESS IS ABOUT PROVIDING THE NETWORK AND THE INTERFACE TO CUSTOMERS. WE ARE REALLY ABOUT PROVIDING DRIVERS.
WE BEGIN WITH TRUCKING WHERE WE CAN HELP OTHER BUSINESSES INCLUDING FREIGHT AND IN THE LONG TERM, WE WILL PROVIDE DRIVERS TO MAKE IT EASIER AND MORE EQUITABLE FOR PEOPLE TO GET AROUND. ED: YOU BEEN A LEADER IN THE SELF-DRIVING SPACE FOR A LONG TIME. I FEEL LIKE I'VE BEEN TALKING FOR A LONG TIME ABOUT BEING CLOSE. WHERE ARE WE TO YOUR MIND NOW
IN REAL-WORLD DEPLOYMENT OF VEHICLES THAT DO NOT HAVE A DRIVER IN THE FRONT SEAT? >> IT'S INCREDIBLY EXCITING TIME. THE ZEITGEIST IS OUT OF PHASE WITH REALITY. ABOUT FIVE YEARS AGO, THE TECHNOLOGY WAS HERE AND IT WAS GONNA HAPPEN TOMORROW AND THAT WAS CLEARLY NOT TRUE. TODAY, THE INCREASING DOUBT ABOUT WHETHER THIS WILL HAPPEN BUT IT IS HAPPENING WHETHER IT'S ON THE STREETS OF SAN FRANCISCO OR L.A. OR PHOENIX OR HAULING LOADS FOR CUSTOMERS DELIVERING GOODS. ED: THE FUTURE OF AURORA IS A
STANDALONE BUSINESS AND YOU BRAISE THE CAPITAL WHICH IS SIGNIFICANT. DO YOU STILL HAVE CONFIDENCE THE BEST WAY TO GO AS A BUSINESS MODEL IS YOU PROVIDE THE TECH RATHER THAN SELL YOURSELF TO A FLEET OPERATOR OR THERE ARE OTHERS THAT HAVE TAKEN THAT ROUTE? >> I'VE NEVER BEEN MORE CONFIDENT ABOUT THE PROSPECTS OF HER BUSINESS WHERE THE PATH WE'VE TAKEN TO GET HERE. OVER THE LAST SIX OR SEVEN YEARS, WE MADE A NUMBER OF STRATEGIC BETS WHETHER IT'S ON OUR LIDAR TECHNOLOGY OR SIMULATION TECHNOLOGY AND THAT'S PLAYING OUT AS WE SEE THE COMPETITIVE LANDSCAPE AROUND US. ED:
THE AURORA CEO, GOOD TO CATCH UP. IT'S BEEN A WHILE SINCE I'VE BEEN IN THAT SELF-DRIVING MODE IN TEXAS. NEXT, WE SIT IN WITH AN EXCLUSIVE CONVERSATION WITH FLEX PORT FOUNDER RYAN PETERSON WHO HAS JOINED FOUNDERS FUND IS A PARTNER. ED: TIME FOR VC SPOTLIGHT. THE FOUNDER OF LOGISTICS START
UP FLEX PORT HAS JOINED THE VENTURE CAPITAL FIRM FOUNDERS FUND AS A PARTNER. HE JOINS ME NOW. THAT'S HOW WE KNOW YOU AS FLEX PORT AND WE SAW THE NEWS YOU JOINED FOUNDERS FUND, WHY? >> FOUNDERS FUND HAS BEEN PROBABLY MY MOST CONSISTENT BACKER. THEY LED AIR SERIESA, B C PARTICIPATED IN THE, AND THE D. THEY BEEN WITH ME SINCE DAY ONE AND A BEEN INCREDIBLY SUPPORTIVE OF THE COMPANY. MORE IMPORTANTLY, I FEEL THEY HAVE THIS INCREDIBLE LEADERSHIP TEAM IN PLACE. WE HAVE DAVE CLARK AND A STRONG GROUP OF PEOPLE AND A LOT OF NEW FOLKS AS WELL. IT'S THE COMPANY IS DOING GREAT
AND THEY ARE IN A GOOD PLACE THERE IS LESS FOR ME TO DO AND UNLIKE AN ALL OR NOTHING GUY. ED: DO YOU COMPLETELY WALK AWAY FROM FLEX PORT? >> ABSOLUTELY NOT. I FEEL LIKE I'M MORE INVOLVED WITH FLEX PORT SINCE JOINING FOUNDERS FUND. ED: HAVE YOU ALWAYS BEEN INTERESTED IN BEING AN INVESTOR? I FIND THAT RELATIONSHIP INTERESTING. YOU SPEND A LOT OF YOUR LIFE TRYING TO RAISE MONEY AS A FOUNDER. ARE THOSE TRANSFERABLE SKILLS
TO GO THE OTHER WAY? >> YES, I'VE BEEN INTERESTED IN BEING AN INVESTOR. I'VE BEEN INTERESTED SINCE I WAS 16 YEARS OLD AND I WAS INTERESTED IN STOCKS BEFORE THAT. I DIDN'T HAVE ASPIRATIONS TO BE AVC. A COUPLE OF MONTHS AGO, I
WASN'T THINKING ABOUT THAT BUT I WAS CONVINCED THAT I COULD STILL RUN FLEX PORT AND BE ACTIVELY INVOLVED IN DUE THIS JOB. I'M THE FOURTH OR FIFTH PERSON AT FOUNDERS FUND. I'M WORKING HARD AND BEING IN THE ARENA RUNNING A COMPANY AND ACTIVE LIKE I'M DOING CAN HELP ME BE A BETTER INVESTOR. ED: YOU SAID YOU WANT TO BE A GENERALIST. THERE MUST BE SOME CRITERIA OR STRATEGY THAT YOU ARE LOOKING AT.
>> I AM A GENERALIST AND LIFE. I TRIED TO LEARN A LITTLE BIT ABOUT EVERYTHING. BEING AVC IS AN AWESOME PLATFORM FOR THAT BECAUSE I GET TO SEE A RANGE OF IDEAS AND STAGES AND BUSINESS TYPES OF MODELS AND GEOGRAPHIES. FOR ME, THAT'S WHAT I LOVE IS MEETING PEOPLE AND HELPING THEM.
AS FOR A SPECIFIC THEME, IT'S MORE ABOUT THE PEOPLE. I WANT TO FIND PEOPLE WHO ARE IN IT FOR THE RIGHT REASON AND YOU'RE PASSIONATE ABOUT WHAT THEY ARE BUILDING AND MAYBE HAVE A CHIP ON THEIR SHOULDER AND FEEL THEY BEEN WRONGED IN SOME WAY I WANT TO PROVE TO THE WORLD THAT THEY ARE THE BEST. IT'S NOT JUST PEOPLE TRYING TO MAKE A QUICK BUCK OR GET HIGHER STATUS BY STARTING A COMPANY OR SOMETHING LIKE THAT. ED: IT'S AN OPEN MINDED SECTOR? >> WE'VE STARTED SOME GREAT COMPANIES AND THEY ARE INCUBATED BY FOUNDERS FUND. WE LIKE TO BE EARLY BECAUSE YOU
GET BETTER RETURNS IF YOU ARE EARLY. WE HAVE A LARGE GROWTH FUND, BILLION-DOLLAR GROWTH FUND SO WE HAVE TO LOOK ACROSS ALL STAGES. ED: I'VE BEEN READING ABOUT YOU AND YOU'VE BEEN AN ANGEL INVESTOR AND ASSOCIATED WITH MANY STARTUPS, 100 OR SO. WHAT HAVE YOU LEARNED FROM THAT? ARE THERE SPECIFIC RED FLAGS WHEN YOU SPEAK TO A FOUNDER OR THINGS THAT ATTRACT YOU ABOUT BACKING SOMEONE? >> I GET TO MEET A LOT OF AMAZING FOUNDERS WHO HAVE AN AMAZING NETWORK. I'VE MET PROBABLY A HUGE PERCENTAGE OF THE GREAT START OF FOUNDERS AT LEAST IN THE SAN FRANCISCO AREA OVER THE LAST DECADE .
I THINK I HAVE TO UNLEARN IS MUCH AS I LEARN. ED: IT'S A CONVICTION OR GUT CALL? >> YOU ARE ALSO LOOKING AT OTHER PEOPLES SIGNALS. YOU ARE NOT MAKING THE DECISION. BEING AVC IS DIFFERENT, YOU HAVE TO HAVE CONDITIONING CONVINCE THE FOUNDER YOU'RE THE BEST PARTNER. YOU DON'T TO SLIDE A CHECK INTO A CROWDED ROUND AS AN ANGEL. I HAVE TO UNLEARN AS MUCH AS I
HAVE LEARNED. ED: YOU HAVE RISEN TO THIS NEW JOURNEY. WHAT'S YOUR WORKING RELATIONSHIP IN LINE WITH PETER THIEL? HAS A CHANGE FROM THE TIME YOU LED FLEX PORT? >> PETER IS AN ICON AND FOUNDED PAYPAL AND THE PAYPAL MAFIA WENT ON TO START TONS OF COMPANIES. HE'S GOT PROBABLY THE BEST NETWORK OF ANYBODY IN THE INDUSTRY AND BEST TRACK RECORD OF INVESTING. HE HAS THE BEST RESULTS IN THE LAST CYCLE.
I THINK HE COMES UP WITH THE BEST ORIGINAL IDEAS. EVERY SIX MONTH OR SO, HE DROPS A NEW VIDEO IN YOUTUBE. I'M NOT SAYING ALL THAT IDEAS ARE RIGHT BUT THEY ARE ALL INTERESTING AND IT'S AMAZING TO WORK WITH HIM. HE ALSO WROTE THE BEST BOOK ON SYRUP SNOW LAST 20 BOOKS DOES IN THE LAST 20 YEARS THAT EVERYONE SHOULD READ. -- THE BEST BOOK ON STARTUPS IN THE LAST 20 YEARS.
YOU CAN WRITE ON HIS COATTAILS AND LEARN FROM HIM. HOPEFULLY, I GET TO BE MORE INTIMATE AND LEARN ABOUT GETTING DEEP IN THE WEEDS. I'M EXCITED FOR THAT. ED: YOU HAVE OUTLINED SOME EXPERIENCE IN BEING AN ANGEL INVESTOR. LITERALLY IN THE LAST TWO OR THREE WEEKS, HOW IS YOUR DAY TO DAY BEEN? HAVE YOU HAD A LOT OF INBOUND FOUNDERS OR HAVE YOU BEEN OUT FOR DISH OUT THERE IN THE REAL WORLD LOOKING FOR THINGS? >> TONS OF INBOUND AND EVERYBODY KEEP REACHING OUT.
LOTS OF GREAT INBOUND ALESSA REFERRALS FROM FRIENDS AND OTHER CEOS TELLING ME ABOUT COMPANIES. I PROBABLY SAID NO MORE TIMES IN THE LAST THREE WEEKS THAN IN MY WHOLE CAREER. THAT'S THE NATURE OF VC, YOU HAVE TO SAY NO TO 99.9% OF THE STUFF YOU SEE. I HAVE TO FIGURE IT HOW TO DO THAT IN A WAY THAT PEOPLE STILL LIKE ME AND WANT TO TALK TO ME AND SEND ME MORE STUFF. I'M FINDING MYSELF GOING BACK AND WORKING HARDER AT FLEX PORT.
WORKING HARD LEASE TO MORE WORKING HARD. I'M GETTING MORE INVOLVED IN THE SALES PROCESS AND WHAT TAKES TO KEEP GROWING AND BE SUCCESSFUL. ED: THE STORY OF THE YEAR IS X. YOU ARE ACTIVE ON X WHICH WAS
TWITTER. WHAT IS YOUR TAKE ON IT? >> YOU ARE CONFUSING ME CALLING IT THAT. I DON'T KNOW ENOUGH WHAT THE VISION IS.
ELON MUSK'S HAD A CONSISTENT TRACK RECORD AND I WOULD BET AGAINST HIM AND TWITTER IS THE MOST TECH -- THE MOST IMPORTANT TECHNOLOGY PLATFORM IN THERE. WE TAKEN FOR GRANTED BUT IT'S SO AWESOME YOU CAN JUST MESSAGE WITH ANYBODY ON PLANET EARTH, ANYBODY ON THEIR WITCHES A LOT OF THE INTELLECTUAL THOUGHT LEADERS ON THE PLANET. ED: RYAN PETERSON, WE HAVE KNOWN YOU FOR SO LONG AS PART OF FLEX PORT. THANK YOU FOR COMING IN AND TALKING ABOUT THIS NEXT JOURNEY WITH US. COME BACK WHEN YOU MAKE SOME
INVESTMENTS. >> THAT WOULD BE GREAT. ED: COMING UP, ARE YOU OBSESSED WITH SUPERCONDUCTORS? YOU'RE NOT ALONE, I MYSELF -- WHO WROTE THIS? I MYSELF AND FEELING THE HYPE AND CRAVING THIS TECHNOLOGY AS IS BEING FELT IN TRADING FLOORS AROUND THE WORLD AND WE WILL TALK ABOUT THAT NEXT. THIS IS BLOOMBERG TECHNOLOGY. ED: AMBIENT SUPERCONDUCTORS ARE SPARKING AN OBSESSIVE FOLLOWING. IT'S THE TECHNOLOGY BEHIND TRANSPORTING ELECTRICITY WITH NO RESISTANCE AND AT LOWER TEMPERATURES AND IT HAS THE POTENTIAL TO TRANSFORM LIFE AS WE KNOW IT.
EXPERTS IN SOUTH KOREA CLAIM TO HAVE SYNTHESIZE THE WORLD'S FIRST SUPERCONDUCTOR KNOWN ASLK-99 AND SHARES FOR SUPERCONDUCTOR RELATED STOCKS HAVE SEEN A MASSIVE JUMP. LK-99 IS NOT PEER-REVIEWED BUT LABS AROUND THE WORLD ARE NOW TRYING TO REPLICATE THE RESULTS. ONCE MORE RESEARCH BECOMES AVAILABLE, SUPERCONDUCTORS CAN REDUCE WASTE, LOWER BILLS AND HELPING TO CURB GLOBAL WARMING.
2023-08-04 21:56
