Microsoft, Meta Allay Tariff Fears; Apple Dealt a Blow | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND B, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW CAROLINE: LIVE FROM NEW YORK, THIS IS "BLOOMBERG TECHNOLOGY." MICROSOFT SURGES ON THE BACK OF STRONG QUARTERLY SALES AND PROFIT GROWTH DESPITE ECONOMIC UNCERTAINTY. ED: MEADOW JUMPING ON THE AD SALES, LEADING TO THAT INVESTOR FEELS ABOUT TARIFFS. CAROLINE: APOTEX AND AT THE GLOW FROM A FEDERAL JUDGE ABOUT ITS APP STORE SALES AS THE TECH GIANT GEARS UP FOR ITS OWN EARNINGS TODAY. FIRST, WE CHECK IN ON THE MARKETS WHICH ARE IN RISK ON MODE. MORE THAN 2% ON THE NASDAQ 100, BEST DAY IN A WEEK, AS WE SEE THE EARNINGS NEWS FLOW IN.
BITCOIN UP 2.4%. MORGAN STANLEY'S E*TRADE MAY BE OFFERING CRYPTO TO ITS RETAIL INVESTOR BASE. DIVE UNDERNEATH THE HOOD, WHAT IS GOING ON? ED: BIG TECHNOLOGY PERFORMANCE. META, OUTLOOK FOR THE CORE BUSINESS OF THE PERIOD STRONG. COMMITMENT TO ADVANCED COMPUTING ACCESS ACROSS THE COMPANY. BUT THERE IS A NUANCE THERE THAT ALSO THE HIGHER COST OF DOING BUSINESS BECAUSE OF TARIFFS IS HAVING AN IMPACT.
MICROSOFT, LOOK AT THE GAME, 33 PERCENT TOPLINE GROWTH ON AZURE CLOUD, DISCUSSION ON THE COMMITMENT TO SPEND ON THE DATA CENTER. BUT THERE IS EVIDENCE THAT THE PRIOR INVESTMENT IS MATERIALIZING IN THE CLOUD BUSINESS. LET'S GET MORE ON MICROSOFT RESULTS. TED MORTONSON OF ROBERT W.
BAIRD. 4% BEYOND WHAT THE STREET SAID BUT WITHIN THAT THERE IS A 16% CONTRIBUTION FROM AI. TOO MANY, THOSE ARE JUST NUMBERS, BUT IT SEEMS TO BE EVIDENCE THAT THE INVESTMENT TO DATE IS TIME TO TRANSLATE TO TOPLINE GAIN. TED: YOU NAILED IT, AND THANKS FOR HAVING ME. THE BOTTOM LINE, ACTUALLY 35% IN ACCOUNTS AND CURRENCY. WHAT A NEW HOOD ALLUDED TO IS
MOST OF THAT UPSIDE IS THE GLOBAL 2000 MIGRATING TO CLOUD. RIGHT NOW ON AZURE, THEY CANNOT KEEP UP WITH DEMAND ON GENAI. THAT GUIDE OF 34% WAS WAY ABOVE THE STREET. CAROLINE: UNABLE TO SATISFY CURRENT DEMAND. IS IT CAUTION COMING FROM MICROSOFT? THEY ARE WILLING TO BE UNDER SERVING IN TERMS OF SUPPLY BECAUSE THEY ARE STARTING TO NORMALIZE THEIR SPENT INTERMENTS -- IN TERMS OF CAPITAL EXPENDITURE. TED:
I THINK THEY ARE TRYING THEIR BEST TO PROVISION A LOT OF THIS NEXT GENERATION EQUIPMENT, PACIFICALLY NVIDIA GPU'S. THERE IS SO MUCH DEMAND, EVEN IF YOU LOOK AT THE METRICS THAT OPENAI PUT OUT LAST WEEK OF HAVING A RUN RATE OF $174 BILLION IN REVENUES, THE DEMAND IS OUTSTRIPPING THE SUPPLY, PLAIN AND SIMPLE. IN THEIR PROVISIONING OF NEW NEXT GENERATION GENAI STACK INFRASTRUCTURE, CANNOT KEEP UP WITH DEMAND. THAT IS A VERY GOOD PROBLEM TO HAVE. CAROLINE: WE HAD NOTE AFTER NOTE, ANALYSIS AFTER ANALYSIS THAT IN SOME WAY MICROSOFT WAS CURTAILING DATA CENTERS WHETHER THROUGH LEASES OR RENEGOTIATION. IS THAT HAPPENING OR IS THE EBB AND FLOW OF DOING BUSINESS? TED: THE CALL, THEY TRY TO GET TO THE ROUTE ROOT INFORMATION ON THIS -- TO THE ROOT OF THIS MISINFORMATION.
IT CANNOT GO AT THE SAME LEVEL OF 24-25 WHEN THEY WERE BUILDING LONG-TERM ASSETS. THEY DEFINED LONG-TERM ASSETS AS DATA CENTERS WITH A SHELF LIFE OF ABOUT 15 YEARS. THE OTHER SHELVES THEY ARE BUILDING, THEY HAVE TO BE HOOKED UP TO UTILITIES. THE BIG THING THAT THE STREET WAS MISSING WAS TIME TO POWER. THEY ARE SOMEWHAT RESTRICTED ON THESE NEXT GENERATION DATA CENTERS, GETTING THE POWER NEEDED TO FUEL THE GENAI LOADS.
FISCAL 26 WILL MODERATE. IT CANNOT GROW AT 50% PLUS FOREVER. I THINK WE'RE MAY BE THE STREET GOT IT WRONG, SOME OF THE ANALYSTS ON THE REIT SIDE PICKING UP SOME WEAKNESS. QUITE FRANKLY, THAT IS A GOOD DATA CHECK BUT PROBABLY NOT IN THE RIGHT CONTEXT IF YOU UNDERSTAND CORE TECHNOLOGY, WHAT IS HAPPENING IN GENAI. ED: MY RELATIONSHIP WITH MICROSOFT IS I LEARNED TO USE COMPUTERS ON THEIR OPERATING SYSTEM. RECENTLY I AM A GAMER. TITLES ARE GOING UP BECAUSE OF TARIFFS.
I LOOK AT THE BLOOMBERG SPLIT UP CLOUD AND SOFTWARE REVENUES, THEY ARE STILL QUITE GOOD AT SELLING SOFTWARE THAT YOU CAN OTHERWISE GET FREE SOMEWHERE ELSE. IS THAT FAIR? TED: THAT IS FAIR. YOU LOOK AT MICROSOFT AND THEY HAVE A HUGE ADVANTAGE, AS WELL AS ORACLE, IN RELATION TO THE OTHER CLOUD TITANS, WHETHER META, GOOGLE, AMAZON.
THEY ALREADY HAD THE ENTERPRISE CUSTOMER. WHEN YOU CONTROL THE ENTERPRISE CUSTOMER TO BEGIN WITH FROM PREVIOUS REVISIONS. WHETHER IT BE EXCEL, WORD, OUTLOOK, AND NOW YOU HAVE THE CEO, SATYA NADELLA, SHOULD BE AT THE TOP OF THE LIST OF CEOS THAT ACTUALLY GET THE MIGRATION TO GENAI. NOW YOU CAN LEVERAGE THAT ENTIRE BASE THROUGH GENAI. WHAT IS DIFFERENT ON MICROSOFT -- THEY BROUGHT THIS UP ON PREVIOUS CALLS.
MICROSOFT HAS A GENAI STACK THAT THEY HAVE CREATED OVER THE LAST MULTIPLE YEARS. IT IS WRITTEN ONCE. IT IS UNBELIEVABLY SCALABLE. WHEN YOU LEVERAGE APPS ON TOP OF THAT, YOU HAVE A MODEL THAT YOU CAN TOUCH. ED: WHILE THIS IS ALL HAPPENING, MICROSOFT IS A BIG CONTRIBUTOR, AND NASDAQ IS PUSHING 2%, THE S&P HIGHER.
I KNOW MICROSOFT IS NOT WHERE IT WAS AT THE OPEN BUT ON TRACK FOR ITS BIGGEST GAIN SINCE 2020. FOR ALL THE NEGATIVE SENTIMENT AROUND THE WORLD ABOUT CLOUD COMPUTING, TARIFFS, PRETTY ASTONISHING MOMENT IN TIME IN THE EARNINGS CONTEXT. CAROLINE: THERE IN LIES WHAT IS PHENOMENAL ABOUT THIS GUIDANCE, THAT WE GOT IT. IS IT THAT COMPANIES ARE
STARTING TO SEE, DESPITE MACRO ECONOMIC HEADWINDS, SEE THE SHIFT FROM ON-PREM TO THE CLOUD, TO GENAI, IT IS SO CRITICAL THEY HAVE TO STICK WITH MICROSOFT RIGHT NOW? TED: THAT IS THE RIGHT QUESTION. THERE ARE TWO ASPECTS. ALL OF GLOBAL 2000 HAS TO MIGRATE TO CLOUD TO LOWER COSTS. THAT IS WHAT YOU DO IN A RECESSIONARY ENVIRONMENT. MORE IMPORTANTLY, WHAT MICROSOFT SAID ON THEIR CALL LAST NIGHT WAS A LITTLE BIT I OPENING ON THE GUIDE OF AZURE BEING UP 34, 30 5% NEXT QUARTER. THEY ARE BRINGING THE COST DOWN ON THESE MODELS 2X. AND THERE ARE TOKENS, GENAI
AGENT TOKENS ARE UP ALMOST 50%. SO THE STREET HAD THIS HUGE DEBATE ON RETURN ON INVESTED CAPITAL. MICROSOFT IS REDUCING COST OF GENAI FOR BROAD ADOPTION. IF YOU ARE IN THE S&P 500, IF YOU ARE NOT MIGRATING TO GENAI, YOU PUT YOUR WHOLE MODEL AT RISK FROM AN OPERATING MODEL PERSPECTIVE." CAROLINE: TED MORTONSON, FANTASTIC TO HAVE YOUR VOICE TODAY. LET'S SHIFT TO META.
SHARES ARE ALSO JUMPING FOLLOWING RESILIENT AD SALES IN THE FACE OF TARIFFS. >> WE HAVE HAD A STRONG START TO THE YEAR. OUR COMMUNITY KEEPS GROWING WITH MORE THAN 3.4 BILLION PEOPLE NOW USING AT LEAST ONE OF OUR APPS EACH DAY. OUR BUSINESS HAS ALSO PERFORMED VERY WELL.
I THINK WE ARE WELL-POSITIONED TO NAVIGATE THE MACRO ECONOMIC UNCERTAINTY. CAROLINE: MARK ZUCKERBERG TALKING ABOUT THE ABILITY TO NAVIGATE. LET'S GET TO EVERCORE ISI MANAGING DIRECTOR MARK MAHANEY. THE RETURN ON INVESTORS
CAPITAL, IS THIS BARREN, IS THE INTEGRATION OF GENAI VINDICATING THAT SPENDING, AND THEY ARE UP THIS YEAR BECAUSE OF TARIFF COSTS? MARK: A COUPLE OF POINTS ON THIS. META IS PROVING TO SHOW AT THE APPLICATION LAYER, YOU CAN GET GOOD ROAI SPEND. THE WAY THAT HE LAID OUT THE EARNINGS CALL LAST NIGHT, THE FIVE AREAS OF FOCUS FOR THE COMPANY AND ON THE RETURN THEY ARE GETTING, EACH AREAS OF THOSE FOCUS, THEY ARE APPLYING AI TO IMPROVE THEIR ADS PLATFORM. THE APPLICATION OF AI HAS ABOUT CONVERSION RATES TO RISE ABOUT 5%, A BIG NUMBER FOR AN AD PLATFORM. ON THE USER SIDE THEY ARE TRYING TO ENGAGE THE USER. TRYING TO MAKE THE CONTENT MORE PERSONALIZED. THE APPLICATION OF AI HAS LED
TO A 6% INCREASE IN TIME SPENT ON BOTH INSTAGRAM AND FACEBOOK. I THINK THEY ARE PROVEN THEY CAN USE AI TO IMPROVE THE SERVICE AND ACTUALLY MONETIZE IT. I WANT TO BE CAREFUL, THOUGH. EXTRAPOLATING FROM META TO OTHER COMPANIES IS TRICKY TO DO. NOT MANY COMPANIES HAVE SPENT AS MUCH AS META HAS. AND THE ADVERTISING PLATFORM IS
MORE RESILIENT. I'M NOT SURE THAT ANY OF THESE COMPANIES ARE OUT OF THE DANGER ZONE WHEN IT COMES TO THE IMPACTS OF TARIFFS. ED: THE TIME SPENT METRICS, IN TERMS OF RESILIENCY, I FEEL LIKE THE STORY EVOLVED. THIS IS THE QUOTE FROM SUSAN ON WHY. THE CAPEX RANGE GETS RAISED, EVEN THOUGH THEY SET COMMITMENT TO AI. THEN SUSAN IS ASKED ABOUT TARIFFS AND THIS IS THE ANSWER.
THE HIGHER COST WE EXPECT TO INCUR FOR THE INFO STRUCTURE HARDWARE THIS YEAR REALLY COMES FROM SUPPLIERS WHO SOURCE FROM COUNTRIES AROUND THE WORLD. GOES ON TO EXPLAIN UNCERTAINTY WHICH RENEGOTIATIONS. WE ARE WORKING ON TRADE MITIGATIONS. THE CAPEX SPEND HIS RACE BECAUSE THEY ARE SPENDING MORE ON DATA CENTERS.
MARK: I THINK THERE ARE TWO REASONS. THEY ARE GETTING MORE AGGRESSIVE OFFENSIVELY. THEY SEE THE RETURN THEY ARE GETTING ON THE AI SPEND AND ARE LEANING INTO IT MORE. THE SECOND THING IS COSTS ARE RISING. I DON'T KNOW IF YOU NOTICE BUT SHE WAS CAREFUL NEVER TO USE THE TARIFF WORD. IT IS A POLITICAL STATEMENT THESE DAYS.
NOBODY WANTS TO GET INVOLVED INTO POLITICS. SHE WAS CAREFUL ABOUT HOW SHE ANSWERED THAT. BUT THE COST OF TARIFFS ARE A TAX, INFLATIONARY. IF YOU ARE BUYING A LOT OF INFRASTRUCTURE HARDWARE, YOUR COSTS ARE GOING UP. MY GUESS IS AMAZON MAY HAVE TO RAISE ITS CAPEX. GOOGLE MAY HAVE TO COME BACK AND RAISE ITS. MICROSOFT WILL HAVE TO RAISE
ITS NUMBERS BECAUSE THE COSTS ARE RISING. ED: SHE IS A CFO BUT SHE GETS THE BUSINESS. WHEN SHE WAS EXPLAINING IS THE COMPUTE NEEDS ARE ACROSS THE BUSINESS. IN OTHER WORDS, WE ARE NOT JUST
DOING THIS FOR THE TRAINING OF A FRONTIER MODEL. WE HAVE PEOPLE IN MARKETING, THE AD DEVELOP BUSINESS DEMANDING ACCESS TO THE COMPUTER. DO YOU HAVE CONVICTION THAT SUSAN LI IS GETTING THAT RIGHT IN THE NUMBERS THAT SHE GAVE LAST NIGHT? MARK: I THINK SO. WE HAVE HAD THREE YEARS NOW REALLY AGGRESSIVE DEPLOYMENT OF AI TO BOOST THE AD BUSINESS, TO BOOST THE PLATFORM FOR ADVERTISERS AND USERS, BUT ALSO TO ROLL OUT SOME NEW THINGS LIKE META AI, AI DEVICES, RAY-BANS, ALSO TO BOOST THE WHATSAPP BUSINESS. THEY HAVE SHOWN THEY CAN GET A GOOD RETURN ON THIS. THEY ARE CUTTHROAT CAPITALISTS LIKE THESE OTHER COMPANIES AND THEY ARE MAKING RATIONAL BUSINESS DECISIONS. I THINK YOU WILL SEE OTHER
COMPANIES LOOK AT WHAT META HAS DONE AND I THINK THEY WILL LEAN INTO AI AS WELL. I KNOW WE DRIFTED AWAY FROM THE AI REVOLUTION EARLIER THIS YEAR BUT I THINK META WILL GIVE US REASON TO DO THAT. CAROLINE: META AI AS A STANDALONE APP, HOW DOES THREADS FILTER INTO OTHER OFFERINGS MORE BROADLY. YOU SAY YOU CANNOT READ INTO META WITH OTHER SOCIAL MEDIA COMPANIES.
READ ACROSS TO AMAZON IN TERMS OF CLOUD. YOU SAY THAT AMAZON MAY HAVE TO RAISE THEIR SPENDING IN THAT RESPECT. WHERE ELSE DOES AWS TAKE US IN TERMS OF GROWTH? MARK: IF THE INFRASTRUCTURE HARDWARE IS MORE EXPENSIVE FOR META, IT IS MORE EXPENSIVE FOR EVERYBODY. THAT WILL BE THE CASE WITH AMAZON, TOO. THE DIRECTION OF A WAS WILL GO UP BUT THINGS COULD CHANGE QUICKLY IN THIS TARIFF ENVIRONMENT. FOR NOW, COST WILL GO HIGHER, SO THAT WILL PROBABLY REFLECTED IN RAISING THE SPENDING. META, THEIR MODEL IS MORE
RESILIENT. ALSO WE HAVE NOT SEEN A DRAMATIC DISLOCATION. YOU STARTED TO SEE SOME ADD VERTICAL SOFFIT IN THE MONTH OF APRIL BUT WE STILL HAVE THE WHOLE YEAR AHEAD OF US. I DON'T THINK META IS OUT OF THE WOODS.
BUT RELATIVE TO EVERY OTHER AD PLATFORM, THEY ARE MORE INSULATED, RESILIENT THAN ANYBODY ELSE. BUT IF THERE IS A SHARP ECONOMIC DOWNTURN, THEY WILL NOT BE IMMUNE TO IT. CAROLINE: AND THE CHINESE RETAILERS THAT PULL BACK ON AD SPENDING, WHAT ABOUT AMAZON'S E-COMMERCE BUSINESS? MARK: I THINK THE MARCH QUARTER WILL BE FINE. GOOGLE GAVE US A FINE MARCH QUARTER, META ALSO DID. PRICES ARE RISING.
THOSE DOLLS ARE GOING TO BE MORE EXPENSIVE ON AMAZON. EXACTLY HOW AMAZON HANDLES THAT, WHETHER THEY ARE GOING TO EAT MARGINS OR DEFEND MARKET SHARE. MY GUESS IS KNOWING AMAZON THEY WILL DEFEND THEIR MARKET SHARE. THEY WILL BE WILLING TO TAKE A HIT TO MARGINS. THAT COULD BE A DOWNSIDE TO STOCKS. PRICES ARE RISING ON AMAZON, NOT A GOOD THING FOR THE AMAZON ECOSYSTEM. ED: GOOD TO HAVE YOU BACK ON THE
SHOW. COMING UP, QUALCOMM BECOMES THE LATEST CHIPMAKER TO OFFER A CAUTIOUS SALES OUTLOOK IN THE FACE OF TRADE UNCERTAINTY. MORE ON THE COMPANY EARNINGS NEXT. THIS IS "BLOOMBERG TECHNOLOGY."
ED: BREAKING NEWS THAT IS MOVING MARKETS. BLOOMBERG REPORTING TO THE U.S. IS WINNING A POTENTIAL EASING OF RESTRICTION ON NVIDIA SALES TO THE UNITED ARAB EMIRATES, ACCORDING TO SOURCES WHO SAY PRESIDENT TRUMP COULD ANNOUNCE THE START OF WORK ON A BILATERAL CHIP DEAL DURING HIS UPCOMING TRIP TO THE GULF. NOTHING HAS BEEN DECIDED
OFFICIALLY. THEY EMPHASIZE THE DEBATE OVER CHIP TRADE RULES FOR THE UAE AND OTHER COUNTRIES REMAINS ONGOING. THE STOCK SPIKING ON THAT REPORT, SESSION HIGHS OF 5%. COMPETITION FOR NVIDIA. INVESTORS WILL BE PAYING CLOSE ATTENTION TO AMAZON'S AI BUSINESS WHEN THEY RELEASE EARNINGS TODAY.
A KEY PART OF THEIR GROWTH STRATEGY IS THE COMPANY'S CUSTOM-DESIGNED CHIP. I GOT A TOUR OF THE AWS FACILITY WHERE THEY ARE MADE AND DESIGNED. THIS IS A W LABS IN AUSTIN, TEXAS.
AMAZON DOES ALL OF ITS CUSTOM CHIP DESIGN IN THE U.S.. AMAZON BOUGHT THEM 10 YEARS AGO. TODAY, THE TEAM DESIGNS AND TESTS SOFTWARE THAT POWERS AWS DATA CENTERS WORLDWIDE. WE LOOKED AT AMAZON'S AI CHIP.
THE OVERSEE COMPUTER ELECTRICAL MECHANICAL, THERMAL, AND SOFTWARE ENGINEERING FOR THE ENTIRE SERVER. SALES REPS FOCUS A LOT ON PRICE FOR PERFORMANCE TO WIN BUSINESS FOR THE CHIP. TODAY, IT DELIVERS 4X THE PERFORMANCE OF GEN ONE.
IN AUSTIN, THERE IS A QUIET LAB FOR CHIP VALIDATION. THEN THERE IS A NOISY ROOM. FULL OUR STRESS TESTED. IT HELPS TO REDUCE AMAZON'S RELIANCE ON A I CHIP LEADER NVIDIA. IT COULD ALSO GIVE THEM MORE CONTROL OVER THEIR OWN DESTINY IN THE MARKET THAT NVIDIA DOMINATES. PROJECT RAINIER WILL BUILD 100,000 OF THESE CHIPS AND THAT PROJECT GOES LIVE THIS YEAR. CAROLINE: LET'S STICK WITH CHIPS.
THE WORST PERFORMER IS QUALCOMM AFTER GIVING A SOFT PREDICTION FOR THE QUARTER. FOR MORE, LET'S BRING IN IAN KING. I FEEL FOR THEM BECAUSE THEY BEAT ON THE PREVIOUS QUARTER BUT IT IS THAT MIDDLING GUIDE IAN: YOU ARE ABSOLUTELY RIGHT. THE GUIDE AT THE TOP AND WAS NOT BAD. ALL THEY HAVE DONE IS SAY WHAT EVERYBODY ELSE SAID WHICH AS WE HAD A REALLY GOOD QUARTER, THINGS ARE GOING OK FOR US. WE ARE DOING BETTER THAN WE SAID BUT MAYBE WE ARE NOT SURE ABOUT WHAT IS GOING FORWARD. THESE THINGS ARE BEYOND OUR
CONTROL. EVERYBODY ELSE SAID THE SAME THING BUT THEY ARE GETTING -- GETTING BEAT UP A LOT HARDER. ED: QUALCOMM, ANDROID, CHINA. WHAT WAS THE STORY? IAN: MASSIVE MARKET FOR THEM SO IN A WAY THEY ARE A TEST CASE.
THEY SAID IT WENT WELL. CAROLINE: WE KEEP OUR EYES ON THE CHINA AND THE BUSINESS THERE. ROBLOX REPORTING EARNINGS BEFORE THE BELL. LARGER THAN EXPECTED JUMP IN ACTIVE USERS, BENEFITING FROM EFFORTS TO ATTRACT NEW PLAYERS AND KEEP AS THEY GROW OLDER. SHARES UP 4%. MANDEEP SINGH IS HERE WITH US.
THIS IS A COMPANY MANAGING TO STEER US TO GROWTH DESPITE MACRO UNCERTAINTY. THEY HAVE THE USERS. MANDEEP: A DEFENSIVE THE NAME LIKE NETFLIX WHERE PEOPLE STILL NEED ENTERTAINMENT. IN THIS CASE, THEY CATER TO THE YOUNGER DEMOGRAPHIC, THE 13-YEAR-OLDS. OLDER AS WELL. THEY HAVE THAT NATIVE CONTENT. YOU THINK ABOUT WHY TIKTOK DID SO WELL, BECAUSE THEY HAD THE CREATORS.
GAMING CREATORS ARE ON ROBLOX. THIS IS WHERE THEY CURATE THEIR CONTENT. THEY HAVE A SUCCESSFUL MODEL IN TERMS OF PAYOUTS THAT THEY GIVE TO THOSE CREATORS, SO IT IS ALL USER GENERATED CONTENT. THEY DON'T HAVE TO SPEND A LOT IN TERMS OF GETTING BRANDED CONTENT, PAYING CONTENT COSTS.
IT'S A VERY SMALL COMPANY WHEN IT COMES TO THE HOURS SPENT ON THE PLATFORMS. 80 BILLION PLUS HOURS ANNUALLY. COMPARE THAT TO NETFLIX. 100 BILLION. AND THEY MONETIZE LESS COMPARED TO ALL THE OTHER PLATFORMS OUT THERE. FROM THAT PERSPECTIVE, THERE IS SO MUCH ROOM TO MONIITIZE. ED: THROUGH ADVERTISING AND LICENSING.
MANDEEP SINGH, THANK YOU VERY MUCH. COMING UP, TESLA'S CHAIR SAYS IT IS NOT LOOKING TO REPLACE ELON MUSK AS CEO. WE WILL DISCUSS NEXT. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: LET'S CHECK IN ON THE SHARES OF TESLA. THE CHAIR HAS BEEN DENYING REPORT FROM THE WALL STREET JOURNAL THAT ALLEGES THE COMPANY WAS LOOKING TO REPLACE ELON MUSK AS ITS CEO.
CURRENTLY UP 1.7%. IS THERE SMOKE BEFORE FIRE? ED: ALL YOU HAVE TO DO IS GO TO THEIR REGULATORY FILINGS, FORM 10K, AND THEY SPELL IT OUT CLEARLY, THIS IDEA ABOUT HE-MAN RISK. THEY ARE HIGHLY DEPENDENT ON HIS SERVICES. THEY ACKNOWLEDGE HE SPENDS TIME AT ALL THESE OTHER COMPANIES. I KNOW THAT SUCCESSION PLANNING
IS ALWAYS IN THE BACKGROUND OF THE TESLA BOARD. CAROLINE: THE ROLE OF CORPORATE GOVERNANCE. ED: WHAT IS INTERESTING, I CONTINUE TO HEAR THAT ELON MUSK ALSO PLANNED TO SPEND MORE TIME ON X AI. THAT IS A BIG PROJECT FOR HIM, A PRIORITY BECAUSE HE WANTED TO BE COMPETITIVE WITH OPENAI FOR HISTORICAL REASONS.
BUT THIS IS A CLEAR DENIAL POSTED BY TESLA CITING THE CHAIR OF THE REPORT THAT THE BOARD WAS LOOKING TO FIND A REPLACEMENT. NOT CLEAR SUCCESSION OR REACTION TO THE STATEMENT THIS YEAR. CAROLINE: DON'T YOU THINK IT WOULD BE A FAILURE OF CORPORATE GOVERNANCE IF THEY WERE NOT THINKING ABOUT WHO COULD LEAD A BUSINESS SUCH AS TESLA? ED: BEYOND ELON MUSK, THERE ARE MANY GENERALS RUNNING THE COMPANY TODAY, AND THE COMPANY IS STILL THE LEADER IN MANY OF THE FIELDS IT IS IN. CAROLINE: A FEDERAL JUDGE RULED THAT APPLE VIOLATED THE COURT ORDER BY NOT OPENING UP THEIR APP STORE TO THIRD-PARTY PAYMENT OPTIONS. WHAT IS NEXT FOR THE TECH GIANT? THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: WELCOME BACK. ED:
LET US TALK ABOUT SOME OF THE BIGGEST MOVERS AND MARKETS AND IT CONTINUES TO BE MICROSOFT. FROM A POINT AND PERCENTAGE -- PERSPECTIVE. TOPLINE GROWTH OF 33%. THE EVIDENCE THAT ALL OF THAT AI SPENDING IS TRANSLATING INTO SALES AND THAT IS A CLEAR IMAGE. AWAY FROM THE EARNINGS CONTEXT, THERE IS ALSO LITIGATION AND ANTITRUST CONSIDERATION. WE ARE TALKING ABOUT ALPHABET, THE PARENT OF GOOGLE AND APPLE.
WE WILL GET TO ONE OF THE STORIES. APPLE IS BASICALLY FLAT AND WE ACKNOWLEDGE THAT IT IS TREADING WATER. ALPHABET, I DO NOT KNOW, I DO NOT DRAW A CAUSAL LINK. CAROLINE: I THINK IT IS THE NUMBERS FEEDING INTO ADVERTISING RESILIENCY. WE GOT A STRONG PUSH BACK AGAINST ANY SORT OF DE FACTO BREAKUP OF THE COMPANY AS WE CONSIDER REMEDIES TO WHAT IS DEEMED A MONOPOLY WITHIN SEARCH. IN COURT FINALLY GETTING UP THERE AND SAYING ANY OF THESE REMEDY IS WHETHER IT IS SHARING THE DATA OR SPINNING OFF CHROME YOU ARE BREAKING US APART AND IT IS MUCH.
>> HE TOOK THE STAND YESTERDAY IN THE TRIAL. THIS IS THE THREE-WEEK TRIAL SUPPOSED TO DETERMINE WHAT THE REMEDY IS FOR GOOGLE'S ILLEGAL ONLINE MONOPOLY IN SEARCH. THE JUSTICE DEPARTMENT PROPOSED THAT GOOGLE'S BEEN OFF THE CHROME BROWSER AND THE REQUIRED TO SHARE A LOT OF THE DATA THAT IT COLLECTS ABOUT USERS AND THE WEB WITH RIVALS. AND HE PUSHED BACK ON THAT REMEDY PRETTY HARD. HE SAID THAT THAT, WHILE NOT AN ACTUAL BREAKUP WOULD BE D -- WOULD BE A DE FACTO BREAKUP, WHICH WOULD ALLOW THEIR RIVALS TO REVERSE ENGINEER THEIR TECHNOLOGY AND USE THE THINGS THAT GOOGLE HAS BUILT UP OVER THE PAST SEVERAL YEARS TO GAIN ITS SHARE IN SEARCH. ED: I SAID THAT APPLE STOCK WAS
FLAT. MAYBE THERE IS DOWNWARD PRESSURE FROM A CRITICAL COURT DECISION. APPLE VIOLATED COURT ORDERS BY NOT OPENING THE APP STORE TO THIRD PARTIES. YOU HAVE BEEN TRACKING THAT AS WELL. WHAT ARE THE NEED TO KNOW DETAILS?
LEAH: THIS GOES BACK TO THE LONG-RUNNING LITIGATION BETWEEN APPLE AND EPIC GAMES WHICH SUED THE COMPANY IN 2020 OVER THE APP STORY. EVEN THOUGH IT LOST MOST OF THE COUNTS, THEY DID FIND THAT APPLES ABSOLUTELY VIOLATED CALIFORNIA STATE LAW OVER ANTITRUST AND ORDERED APPLE TO MAKE CHANGES TO ITS POLICIES, IN PARTICULAR ALLOWING DEVELOPERS TO MAKE IT EASIER TO BUY DIGITAL GOODS AND SERVICES ON THEIR OWN WEBSITES AS OPPOSED TO WITHIN THE APPLE ECOSYSTEM. APPLE DID NOT LIKE THIS AND INTRODUCED SOME NEW POLICIES JANUARY OF LAST YEAR THAT IT WILL CHARGE A 27% COMMISSION ON THINGS THAT PEOPLE PURCHASED OUTSIDE OF THE APP STORE IF THEY TOOK ADVANTAGE OF THE LINKS. EPIC COMPLAINT AND THE JUDGE HELD A SERIOUS OF HEARINGS -- A SERIES OF HEARINGS LAST YEAR AND THIS YEAR AND AMY SAID THAT THE CHANGES WERE DELIBERATELY ANTICOMPETITIVE.
SHE SAID IN AN OPINION, SHE SAID EVERY SINGLE TIME THAT APPLE HAD A CHOICE IT SHOWS THE ANTICOMPETITIVE OPTION. SOME OF THE EXECUTIVES LIED ON THE STAND AND SHE RECOMMENDED THAT THE FEDERAL GOVERNMENT OPEN AN INVESTIGATION INTO WHETHER THEY SHOULD BE HELD LIABLE FOR CRIMINAL CONTEMPT OF COURT. CAROLINE: ON FIRE WAS GONZALEZ ROGERS SAYING THAT IF THEY THOUGHT TO THE COURT WOULD TOLERATE INSUBORDINATION IT IS A GROSS MISCALCULATION. APPLE SAYS WE DISAGREE AND WE WILL APPEAL. WHAT NEXT? LEAH: APPLE WILL APPEAL. SHE SAID IN HER DECISION APPLE NEEDED TO MAKE IMMEDIATE CHANGES.
THEY ARE LIKELY GOING TO TRY AND APPEAL THAT TO PUT THAT ON HOLD THROUGH THE APPEALS. WE WILL SEE IF THE NINTH CIRCUS -- NINTH CIRCUIT AGREE AS. WE FOUND EARLIER THAT THE DECISION WAS SOLID. THEY COULD PUT THIS ON HOLD WHILE APPLE APPEALS. IF THEY DO IT WILL GO THROUGH THE APPEAL PROCESS AND WE WILL NOT HAVE A DECISION UNTIL MID TO EARLY NEXT YEAR. OR, THIS SHOULD HAVE GONE INTO
EFFECT LAST YEAR AND THEY COULD LET IT GO INTO EFFECT WHILE APPLE APPEALS. ED: THANK YOU VERY MUCH. LET US GET MORE ON APPLE, BUT SPECIFICALLY WHAT INVESTORS EXPECT. LET US BRING IN CAROLINE A MILLAN AC.
MARK, WHO IS PROBABLY THE LEADING CORRESPONDENT AND JOURNALISTS COVERING APPLE IN THE WORLD SAYS DO NOT LOOK BACK AT THE CORRIDOR GONE OR THE NUMBERS, IT IS ABOUT THE LONG-TERM AND WHAT APPLE COMMUNICATES ON HOW IT ADJUSTS TO SUPPLY CHAINS IN THE FACE OF TRADE POLICY, PRESENT -- PRESENTLY. WHAT IS YOUR THESIS? >> I AGREE. IT IS ABOUT WHAT APPLE IS ABLE TO DO FROM A MANUFACTURING AND SUPPLY CHAIN PERSPECTIVE TO MAKE SURE THAT THEY ARE NOT SUBJECTIVE TO WHAT THE ADMINISTRATION DECIDES TO DO. WE KNOW THAT THEY ARE PLANNING TO SHIFT THEIR PRODUCTION TO INDIA, AS FAR AS IPHONES COMING TO THE U.S.. THAT DOES NOT HAPPEN OVERNIGHT.
ANYTHING THAT THEY ARE ABLE TO DISCLOSE, AND OBVIOUSLY APPLE KEEPS THEIR CARDS CLOSE TO THEIR CHEST ON THINGS LIKE THIS. THE STREET NEEDS REASSURANCE THAT THEY HAVE A PLAN. IT IS THE SAME FOR AI. ED: APPLE IS HISTORICALLY THE MASTER OF THE BOTTOM LINE.
PROFIT AND MARGINS, IRRESPECTIVE OF WHAT IS HAPPENING AROUND THE WORLD. YOU AND I DISCUSSED THIS THE LAST TIME YOU WERE ON THE SHOW. IN THE LONG TERM, INDIA FLYING HANDSETS, IT COSTS MONEY MOVING SOMETHING FROM PLACE A TO B. HOW DO YOU SEE THEM EXPLAINING THEIR ABILITY TO PROTECT THEMSELVES FROM THOSE COSTS? CAROLINA: A COUPLE OF THINGS. ONE IS THAT THIS IS TIM COOK'S BREAD-AND-BUTTER. HE HAS AN OPERATIONAL GUY AND HE HAS BEEN ENTRENCHED IN THE SUPPLY CHAIN ORGANIZATION VERY LONG TIME.
HE HAS A VERY GOOD DIPLOMAT. WHILE MOVING THE SUPPLY CHAIN AND PRODUCTION TO INDIA IS ONE OF THE CORE THINGS THEY CAN DO, HE IS VERY GOOD WITH DEALING WITH POLITICS, WHETHER IT IS AT HOME OR IN CHINA. THIS IS THE OTHER THING THAT WE WILL SEE HAPPENING. WE HAVE TO REMEMBER THAT APPLE IS BECOMING MORE DEPENDENT ON REVENUE COMING FROM SERVICES.
WE MIGHT SEE GIVE FROM A PRICE PERSPECTIVE ON THE ACTUAL PHONES AND OTHER DEVICES, THINKING THAT THEY CAN RECOUP SOME OF THAT. CAROLINE: HE MIGHT BE A GOOD DIPLOMAT BUT MANY MIGHT FEEL THEY HAVE DROPPED THE BALL FROM AN AI PERSPECTIVE. I HAVE ONE NOTE SAYING THAT APPLE IS STRUGGLING TO STAY RELEVANT. IS THAT TOO MUCH OF AN
ASSUMPTION TO BE MAKING BECAUSE OF THE LACKLUSTER ROLLOUT OF GEN AI? CAROLINA: AT THE END OF THE DAY PEOPLE ARE PICKING UP THAT APPLE MADE PROMISES AND THEY ARE NOT DELIVERING YET. THAT IS THE REALITY. WHAT IS A REALITY AS WELL IS THAT CONSUMERS ARE STILL NOT GOING INTO A STORE ASKING FOR SOMETHING THAT IS AI DRIVEN AND THEY ARE VERY MUCH FOCUSED ON HARDWARE WHEN THEY ARE LOOKING AT SMARTPHONES. THERE IS SOME GRACE WHEN IT COMES TO THE OPPORTUNITY THAT APPLE HAS. IT IS INTERESTING TO SEE THE EXCITEMENT AROUND THE STATEMENT THAT IF YOU TRIED TO MAKE YESTERDAY AROUND GEMINI GETTING TO APPLE BEFORE THE END OF THE YEAR. CAROLINE: THAT CROSS-POLLINATION. MAYBE THAT IS AI WINNING OUT
FOR APPLE. THEY DO NOT DO IT FIRST BUT THEY END UP DOING IT BEST. DO PEOPLE HAVE THE BANDWIDTH TO HOLD ONTO THAT VIEW? CAROLINA: I THINK SO. THERE WILL BE TWO REALITIES. APPLE, SIRI AND WHAT APPLE INTELLIGENCE WILL DELIVER SOMETHING MORE PERSONAL. WHAT PEOPLE ARE EXCITED ABOUT IS MORE GENERAL AI AND THAT IS WHERE GEMINI, CHATGPT AND OTHER PROVIDERS COME IN. APPLE USUALLY COMES IN LATER IN
THE MARKET WITH A SOLUTION THAT THEN PLEASES CONSUMERS BECAUSE OF THE WAY THAT THEY PACKAGE IT. ED: YOU ARE BOTH MAKING HISTORIC REFERENCES TO BLACKBERRY AND THE HISTORIC MARKET. WHAT IS THE ONE AREA WHERE APPLE IS INDISPUTABLY KING? CAROLINA: I THINK IT IS SIMPLICITY, TO BE HONEST. THE FACT THAT AT THE END OF THE DAY, WHEN THEY
DELIVER IT TO A CONSUMER, THE SIMPLICITY THAT THEY USE TO DELIVER IS ENTICING CONSUMERS TO STAY WHERE THEY ARE. THE OTHER IS MARKETING. CAROLINE: THEY ARE GOOD AT THAT AND WE WILL HAVE TO SEE HOW MUCH THEY DIAL THAT UP. IT IS ALWAYS GREAT TO HAVE YOU. COMING UP, THE NEXT BIG GUY -- BIG AI START UP. THAT IS NEXT. THIS IS BLOOMBERG TECHNOLOGY. TECHNOLOGY PODCAST ON THE TERMINAL, APPLE, SPOTIFY AND IHEART. THIS IS BLOOMBERG.
UNCORK CAPITAL HAS RAISED $3 MILLION THAT WILL BE SPREAD ACROSS TWO FUNDS. IT MADE A NAME BACKING THE LIKES OF POSTMATES, EVENTBRITE AND FITBIT, AND THEY ARE LOOKING FOR THEIR NEXT START UP LOOKING AT AI. CAROLINE AND I HAVE NOTICED SOMETHING. EVERY DAY, LITERALLY, WE ARE DELIVERING NEWS ABOUT A NEW FUND THAT HAS CLOSED. WHAT IS THE BIG DRIVER ABOUT THAT ACTIVITY, AND SPECIFIC TO YOU? ANDY: THAT IS A GREAT QUESTION. IT COMES DOWN TO LP. INVESTORS AND FUNDS LOOKING FOR
WAYS TO DEPLOY CAPITAL INTO MANAGERS WHO HAVE A KNACK, HISTORY AND TRACK RECORD OF HAVING FOUND BREAKOUT COMPANIES BEFORE THEY ARE OBVIOUS. AS INVESTORS THAT IS SOMETHING WE HAVE TO BE ABLE TO DO AND SEE AROUND THE CORNER AND SEE THE THINGS MOST PEOPLE CANNOT SEE. CAROLINE: IS THE SEED AND VERY EARLY STAGE THE HARBOR IN THE STORM AT THE MOMENT. IS THAT IS WHERE YOU ARE
GETTING INTEREST? ANDY: WHEN YOU INVEST AS EARLY AS WE DO WHICH IS INCEPTION STAGE OR SHORTLY AFTERWARDS, YOU ARE INSULATED FROM THE GLOBAL MACRO AND THEY WILL BE KNOCK ON EFFECTS ON THE TARIFFS THAT AFFECT OUR LATER STAGE PORTFOLIO COMPANIES GOING OUT FOR AN IPO. I THINK FOR THE VERY EARLY STAGE, IT IS GIVING PEOPLE THE DETERMINATION TO PUT THEIR HEADS DOWN AND BUILD. CAROLINE: MORE BROADLY WE ARE THINKING ABOUT WHERE IT IS IMPACTING LATER STAGE INVESTMENTS AND THE FOLLOW-ON. YOU WERE FOUNDED IN 2004 AS A
VC COMPANY. THIS IS A LONG-TERM BIT THAT IS COMING TO FRUITION. WHAT DO YOU THINK ABOUT THE EXIT MARKET. A LOT OF THE EXITS HAVE BEEN M&A. YOU HAVE NOT HAD THAT MANY LANDMARK IPO'S. ANDY: FITBIT WAS THE FIRST. POSH MARK. POSTMATES HAD FILED BEFORE THEY WERE TAKEN OUT.
THERE HAVE BEEN A LOT OF TALK AROUND IF THE IPO'S ARE NOT HAPPENING AND M&A IS SLOW AND WE ARE BEING GETTING TO SEE THE GRIP AGAIN A LOT OF LIQUIDITY WILL COME FROM THE SECONDARY MARKET. AS EARLY-STAGE INVESTORS WE HAVE TO THINK ABOUT HOW WE WILL REALIZE LIQUIDITY. IF WE DO NOT GIVE THEM CAPITAL BACK THEY WILL NOT GIVE US MORE. ED: LET US SHOW YOU THE PORTFOLIO NAMES. WHAT DO THEY HAVE IN COMMON
WHEN YOU WANT TO LOOK AT THE NEXT GREAT START UP BUT AS I READ AT THE BEGINNING, IN AI? ANDY: ON AI, IT IS PERVASIVE AND IT WILL ONLY BECOME MORE PERVASIVE. PEOPLE ARE STILL TALKING ABOUT NATIVE STARTUPS. YOU WIND THE CLOCK FORWARD AND ALL OF A SUDDEN TALKING ABOUT CLOUD WHERE IT IS ASSUMED THAT YOU ARE BUILDING USING AI. IN TERMS OF THE COMPANIES THE TWO THINGS ARE EARLY BETS ON FOUNDERS THAT HAVE A PARTICULAR POINT OF VIEW OF HOW THINGS SHOULD BE DONE. AND SECONDLY, THEY ARE OPENING NEW MARKETS. PEOPLE NOW THINK ABOUT DOORDASH, BUT POSTMATES WAS THE FIRST ON-DEMAND FOOD DELIVERY AT AND FITBIT WAS THE FIRST THAT COULD TRACK STEPS AND FITNESS. THESE ARE DIFFERENT TYPES OF
BUSINESSES AND BUSINESS MODELS, THAT ONE THING RUNS THROUGH THEM. ED: IT HAS BEEN DOING THE ROUNDS ON AT ABOUT EARLY-STAGE INVESTING AND HOW IT HAS BEEN DOMINATED BY A FEW PLAYERS. WHAT IS IT LIKE FOR YOU IN THAT ENVIRONMENT WHERE THERE IS A HIGH CONCENTRATION OF ACTIVITY FROM HALF A DOZEN TO A DOZEN SLIGHTLY LARGER FIRMS? ANDY: WE TYPICALLY SEE THOSE AS THE FIRMS THAT FOLLOW BEHIND US. THEY ARE ALL DOING PROGRAMS AND INVESTING. BUT WHEN YOU ARE TRYING TO
EMPLOY A MULTIBILLION FUND YOU CANNOT BE SLINGING CHECKS ALL DAY LONG. ONE OF THE THINGS WE LOVE ABOUT INVESTING IS THAT WE HAVE OUR PLACE IN THE ECOSYSTEM AND WE CAN BE COLLABORATIVE AND WORK WITH THE NAMES THAT WE MET -- THAT YOU MENTIONED LATER. AS WE TALKED ABOUT OUR CHALLENGE OPPORTUNITIES, WE HAVE TO PICK THINGS BEFORE THEY ARE OBVIOUS. WHEN THEY ARE OBVIOUS, SEQUOIA WILL PAY BIG MONEY. IT IS ALL ABOUT SPOTTING THE THINGS THAT ARE NOT THERE YET. CAROLINE: IT HAS BEEN GREAT SPEAKING WITH YOU. THANKS. UNCORK CAPITAL.
LET US TAKE IN THE WORLD OF VC BECAUSE WASHINGTON HOSTED BUSINESS LEADERS AND LAWMAKERS FOR THE HILL AND VALLEY FORUM WITH A FOCUS ON TECH AND NATIONAL SECURITY. WE SPOKE WITH JOSH WEALTH ON WHY THE WORLD SHOULD NOT FOCUS ON CHINESE AI MODELS. JOSH: WE HAD TO RESTRICT CHIPS IN CHINA AND ONE OF THE GREAT LESSONS OF INNOVATION'S NECESSITY IS THE MOTHER OF INNOVATION.
WHETHER DEEPSEEK WAS TRAINED THROUGH DIFFUSION MODELS WHERE THEY COPIED DOES NOT MATTER. WHAT MATTERS IS REALLY EFFICIENCY ON LESS DP USE THEY WERE ABLE TO DO SOMETHING THAT OUR BEST MODELS COULD NOT. THAT WAS A WAKE-UP CALL TO SAY IS THE FUTURE OF AI GOING TO BE SMALLER MODELS OR DIFFERENT CHIP ARCHITECTURE AND HOW WILL WE COMPETE? MY OWN PERSONAL VIEW IS THAT OPEN SOURCE WILL BE CLOSED SOURCE. THESE LARGE COMPANIES THAT HAVE RAISED TENS OF BILLIONS OF DOLLARS, MOCHE OF WHICH -- MOST OF WHICH HAS WORKED THROUGH NVIDIA.
IN THE FUTURE WHAT WILL HAPPEN IS THAT THE COMPANIES THAT HAVE THE LONGITUDINAL SILOS, PEOPLE WHO HAVE A LOT OF THE BIG DATA ARE THE ONES WHO WILL BE ABLE TO USE FREE OPEN-SOURCE MODELS ON THEIR PROPRIETARY DATA. THAT MIGHT BE PHARMA COMPANIES OR BLOOMBERG WITH A REPOSITORY OF FINANCIAL INFORMATION. META WITH WHATSAPP AND FACEBOOK AND ELON, TESLA AND X.
THOSE ARE THE PEOPLE THAT WILL BE ADVANTAGE AND THAT IS WHAT WE WILL BE FOCUSING ON. HOW DO WE COMPETE WITH CHINA NOT ON THE CHIPS AND MODEL SIDE BUT THE APPLICATIONS AND THE USE OF THE DATA. ANNMARIE: ON THE CHIP SIDE, JENSEN, WHEN HE WAS COMING INTO THE CONFERENCE AND I ASKED HIM HOW FAR BEHIND HIS CHINA AND HE SAID HIS CHINA BEHIND? HE THINKS THEY ARE CLOSE. HOW DO WE MAKE SURE THAT THEY DO NOT SURPASS AMERICA? JOSH: IT WILL BE ABOUT USE CASES. WE DO NOT WANT THE REST OF THE WORLD USING CHINESE MODELS BECAUSE IT WILL APPROACH TRUTH. THERE WILL BE NO SEARCH ABOUT
THE UIGHURS AND THIS KIND OF THING. WE WANT THE WORLD USING OPEN MODELS MADE BY COMPANIES LIKE OURS THAT ARE THE OPEN-SOURCE REPOSITORY FOR ALL THE BEST AI MODELS. VETERANS CLOSER TO TRUTH AND THOSE OF THE SYSTEMS THAT YOU WANT USING THAT -- THAT YOU WANT PEOPLE USING AI FOUR. THEY WILL COME UP WITH LESS GOOD AND MORE NUMEROUS OF THEM AND THEY WILL FIND OUT -- FIND WAYS TO BEAT US IN THAT DOMAIN. THE KEY IS HOW DO WE GET OUR KIDS USING IT EARLY AND BECOME ADVANTAGED AS INDIVIDUAL HUMANS USING AI TO BECOME MORE PRODUCTION -- MORE PRODUCTIVE.
ED: THAT WAS JOSH WOLF SPEAKING. COMING UP, ROBINHOOD REVENUE JUMPS MIDMARKET VOLATILITY. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: TIME FOR TALKING TECH. ROBINHOOD HAD RETAILER INVESTORS FLOCKING TO THE PLATFORM AS THE TARIFFS ROILED MARKETS. NET REVENUE JUMPED 50% BUT CRYPTO REVENUE FELL BEHIND, MAYBE REFLECTED IN THE STOCK MOVE. THE CEO SPOKE ABOUT THE STRENGTH IN APRIL.
>> APRIL HAS BEEN STRONG ACROSS THE BOARD. I TALKED ABOUT FUTURES ALREADY, BUT EQUITIES AND OPTIONS ARE AT OR NEAR MULTIYEAR HIGHS. AND NET DEPOSITS HAVE CONTINUED TO BE REMARKABLY STRONG. CAROLINE:
INSTANTCART HAVE BOUGHT WYNSHIP. THIS POWERS OVER 600 BRAND SITES. THE TERMS AND THE SIZE OF THE DEAL WAS NOT EXPOSED.
VISA IS ENABLING AI AGENTS THAT WILL BROWSE PRODUCTS AND MAKE PURCHASES FOR CONSUMERS CUTTING THE TIME AND ENERGY SPENT ON SHOPPING. WE SPOKE WITH THE VISA CEO WHO HAD THIS TO SAY ABOUT THE PROGRAM. >> WHAT WE HAVE ANNOUNCED IS A SET OF TOOLS THAT GIVE AGENTS THE CAPABILITIES TO MAKE PAYMENTS ON YOUR BEHALF. THINK OF THAT OF AI ENABLED CREDENTIALS.
AND ALSO THE RULES AND CAPABILITIES THAT WILL PROVIDE TRUST. TRUST THAT CONSUMERS WILL HAVE IN THEIR AGENTS AND THAT MERCHANTS WILL HAVE THAT THEY WILL GET PAID AND THAT FINANCIAL INSTITUTIONS WILL HAVE THAT YOU HAVE EMPOWERED YOUR AGENT TO MAKE THOSE PURCHASES. CAROLINE: YOU CAN WATCH MORE OF THAT CONVERSATION ONLINE AT BLOOMBERG.COM. ED: THAT DOES IT FOR BLOOMBERG TECHNOLOGY. LET US RECAP THE BIG STORIES IN MARKETS.
MICROSOFT AND META, RESILIENCE AND STRENGTH WHILE CONTINUING TO SPEND ON AI. NVIDIA PARING SOME OF ITS GAINS AFTER AN EXCLUSIVE THAT THE U.S. IS WEIGHING CHIP EASING. WE WILL CONTINUE TO TRACK THAT STORY THROUGHOUT THE DAY. CAROLINE: WE HAVE MORE EARNINGS TO COME, APPLE DOWN .3%. WE GET THAT LOSS WHEN IT COMES TO THE FIGHT IN THE COURTS REGARDING THE APP STORE AND WHAT WILL THEY SAY IN TERMS OF CONSUMERS. AMAZON UP 2.5%. READ IT UP 4% -- EDDIT, UP 4%.
2025-05-04 13:06
