Nvidia Surges and Reddit Gears Up for IPO | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I AM CAROLINE HYDE. THIS IS BLOOMBERG TECHNOLOGY. NVIDIA SURGES AS A I DEMAND POWERS THE COMPANY OUTLOOK AGAIN. WE WILL HAVE FULL COVERAGE ON
THE COMPANY AS IT LOOKS TO ADD $250 BILLION TO ITS MARKET CAP TODAY. WE WILL GET A READ ON THE STATE OF THE IPO MARKET AS RATED -- REDDIT GEARS UP. PLUS, A PREVIEW OF WHAT WE CAN EXPECT FROM AN EXPLORATION START UP AND ITS ATTEMPT TO PUT A U.S.-MADE LANDER ON THE MOON
FOR THE FIRST TIME IN 50 YEARS. FIRST, EXTRAORDINARY MOVES ONCE AGAIN AND STILL A VALUATION THAT IS RELATIVELY CHEAP, NVIDIA SURGING 15%. WILL BE THE BIGGEST EVER ADDITION IN TERMS OF MARKET CAP FOR ANY SINGLE STOCK, UP 15% AGAIN, MAKING IT ON THE EDGE OF GETTING TO THE $2 TRILLION MARK. AND THE REASON MAY BE THE VALUATION -- THOSE EARNINGS KEEP ON RISING AT AN X ORDINARY PACE. >> WHAT A SENSATIONAL SET OF >> RESULTS FROM NVIDIA. >>I WILL DO MY BEST TO CONTAIN MY ENTHUSIASM.
>> EACH QUARTER, THEY CONTINUE TO SURPRISE. >> THE ONLY RESULTS THAT WOULD BE ACCEPTABLE WAS A SUBSTANTIAL BEAT. >> THIS IS A COMPANY THAT CONTINUES TO BLOW AWAY EVERYBODY'S MOST ROBUST FORECASTS.
>> YOU CANNOT DENY THE IMPACT IT IS HAVING ON THE U.S. TECH SECTOR AND ONE OF THOSE REASONS IS THE IDEA THAT IT IS THE TIPPING POINT. >> THERE IS GREAT MOMENTUM THERE. >> PEOPLE ARE BEGINNING TO WONDER HOW MANY CONSECUTIVE QUARTERS THIS COMPANY CAN CONTINUE TO RUN.
>> HOW LONG CAN THIS CONTINUE? >> THERE IS CONSENSUS TO PUT COMPETITIVE PRESSURE BACK. >> THE COMPETITION HAS NEVER BEEN MORE FIERCE THAN NOW, BUT THEY HAVE A HUGE HEAD START. >> THIS IS COMING TO THE REST OF TECH AND THAT WILL CONTINUE TO FUEL THIS MARKET.
>> THE EQUITY MARKET IS NICELY SET UP FROM HERE. >> THIS AI PARTY IS JUST GETTING STARTED. CAROLINE: WHAT WAS EXTRAORDINARY WAS IF YOU WERE TRADING AFTER HOURS AT ONE POINT YOU WERE LOOKING AT A LOSS. WHAT PUSHED US BACK INTO THE
GREEN? >> WHEN YOU LOOK AT THE PRINT, THE CHINA NUMBERS STOOD OUT. CHINA USED TO BE 20% OF REVENUE. NOW IT WAS SINGLE DIGITS. THEY HAD SOME HEADWINDS. DESPITE THAT, THEY COME OUT AND
RAISE THE FORECAST BY ANOTHER 10%. THAT IS WHAT IS MOST IMPRESSIVE ABOUT THE RESULTS. THEY HAVE NOT MISSED A BEAT IN TERMS OF SHIPPING YOUR PRODUCT, SO THEY ARE TALKING ABOUT CHIPS, DOUBLE THE PERFORMANCE.
THEY ARE EXECUTING TO PERFECTION HERE AND THEY KEEP DELIVERING QUARTER AFTER QUARTER OF PERFECTION. THE QUESTION IS, WHAT IS THE MARKET? IT IS $1 TRILLION INCREMENTAL OVER THE NEXT FIVE YEARS. THEY ARE WELL-POSITIONED ON THE COMPUTER SIDE. IF YOU TAKE THAT FORECAST AND MODEL THAT, YOU WILL BELIEVE THEY CAN KEEP WITH THESE NUMBERS. AT SOME POINT, THERE WILL BE A DIGESTION PHASE BECAUSE THEY ARE EXPOSED TO HYPER SCALARS. 50% OF THEIR REVENUES COMING FROM HYPER SCALARS CAPEX, WHICH MEANS EVERY HYPER SCALER IS ABOUT 5% OF THEIR REVENUE AND THEY ARE BUYING THESE CHIPS. BUT FOR HOW LONG?
IF ONE DOES GET THEIR OWN SHIP, WHAT IMPACT DOES IT HAVE? PROBABLY PEOPLE ARE NOT WANT TO TALK ABOUT IT FOR THE NEXT ONE OR TWO QUARTERS. CAROLINE: BUT THEY HAVE STARTED TO TALK ABOUT DIVERSIFICATION AND THAT SOVEREIGNS NEED TO HAVE ACCESS TO THEIR OWN COMPUTER. HOW MUCH DO THINK THEY CAN DIVERSIFY AWAY FROM THESE MEGA COMPANIES THAT ARE SO DOMINATING THEIR REVENUE? MANDEEP: THEY NEED THAT AND THERE WILL BE MORE THAN FIVE FOUNDATIONAL MODELS.
RIGHT NOW, THE PREVAILING MARKET VIEW IS FOUR OR FIVE MODELS AND EVERY COMPANY WILL STANDARDIZE ON THAT. HE IS SAYING THERE WILL BE VERTICAL LARGE LANGUAGE MODELS BECAUSE THESE COMPANIES DO NOT WANT TO GIVE AWAY THEIR DATA TO OPENAI OR GEMINI. IF THAT IS THE CASE, THESE COMPANIES NEED TO INVEST OR GOVERNMENTS NEED TO HAVE THE SAME LEVEL OF CAPEX INVESTMENTS AS HYPER SCALARS HAVE DONE. IF THE STANDARDIZE MODELS ARE GOING TO BE THE FOUR OR FIVE WE HAVE KNOWN, I THINK IT WILL BE HARD TO JUSTIFY COMPANIES SPENDING $50 BILLION TO BUY NVIDIA CHIPS.
AND INFERENCING IS THE OTHER BIG OPPORTUNITY. IF NVIDIA CHIPS ARE GOING TO BE AND OTHER TYPES, THAT EXPANDS THE MARKET. IF WE DO NOT KNOW THOSE DETAILS, ALL WE KNOW HIS NEXT QUARTER THEY WILL COME OUT AND PROBABLY RAISED BY ANOTHER 10%. CAROLINE: AND WE ARE EXPECTING ANOTHER REVENUE INCREASE.
ALWAYS BRILLIANT TO PUSH IT FORWARD WITH MANDEEP SINGH. WE WERE REFERENCING CHINA. LET'S DIVE DEEPER INTO THAT. THE CHINA STORY IS IMPORTANT. JUNHENG LI IS JOINING US NOW, THE HEAD OF RESEARCH AT JL WARREN CAPITAL. YOU ARE BASICALLY FOCUSING A LIMELIGHT ON THE COMPANIES THAT HAVE BIG EXPOSURE TO CHINA AND DOING DEEP DIVE RESEARCH INTO THEM. HOW MUCH EXPOSURE IS NVIDIA
GOING TO HAVE GOING FORWARD? >> I THINK IT IS VERY DYNAMIC. RIGHT NOW, THEY HAVE 5%. IN FISCAL YEAR 2023, 20 PERCENT, SO THERE IS A SHARP JUMP IN THE DIRECT EXPOSURE TO THE CHINA MARKET. THE OFFSHORE DATA CENTERS OWNED BY CHINESE ENTITIES THAT USE NVIDIA CHIPS, THOSE WILL BE MARKETS IN SINGAPORE AND THE MIDDLE EAST. WHEN YOU COMBINE ALL THOSE, THAT IS PROBABLY 20% OF THE NVIDIA AI CHIP EXPOSURE. THE BIDEN ADMINISTRATION APPROVAL -- CHINA IS EXPECTING A SHIPMENT OF A DUMBED DOWN VERSION OF THE EDGE 100 AI CHIP IN THE SECOND QUARTER BUT IT DEPENDS ON THE ADMINISTRATION IN THE U.S..
THERE'S A SHORTAGE OF EQUIPMENT OF AI GPU CHIPS IN CHINA, EVEN THOUGH -- TO CATCH UP. IT IS SUCH A LONG AND COMPLEX SUPPLY CHAIN. IT IS NOT SOFTWARE, WHICH CHINA IS GOOD AT. CAROLINE:
HOW QUICKLY DO YOU THINK -- MUCH HAS BEEN SAID THAT IF WE DO FORCE THE U.S. COMPANIES TO EXIT THEIR EXPOSURE TO CHINA ULTIMATELY WE ARE JUST FAST TRACKING THE SUPPLY CHAIN OF CHINA. DO YOU BELIEVE THAT OR DOES JENSEN STILL WANT TO BE WINNING IN CHINA? >> THERE IS SHORT-TERM HERE THERE IS LONG-TERM. THERE IS SLOW INCREMENT OF TECHNOLOGY, ARCHITECTURE, AND PRODUCTION, WHICH IS IMPORTANT. THIS IS A COMPANY IN OPERATION FOR 30 YEARS WITH A RICH HISTORY OF UPS AND DOWNS. THE A100, THE FIRST DOMINATING AI PARALLEL COMPUTING SHIP THAT WAS LAUNCHED TWO YEARS AGO TAKES A COUPLE YEARS TO FIGURE OUT PRODUCTION CAPACITY. EVEN TODAY, DEMAND EXCEEDS
SUPPLY. IT IS COMPLEX. IT IS A HARDWARE COMPANY AND THE SUPPLY CHAIN IS LONG AND PRIMARILY ACROSS ASIA, SO IT WILL TAKE A LONG TIME FOR HUAWEI TO FIGURE OUT WHERE TO SOURCE ITS CAPEX INCREMENT, WHERE TO SOURCE. I THINK FIVE TO 10 YEARS. UNTIL THEN, THERE'S ENOUGH ROOM FOR NVIDIA LEGACY CHIPS TO CHINA JUST GETTING GOING AND FOR COMPANIES TO FIGURE OUT HOW TO RUN THEIR LOWER VERSION OF AI COMPUTING. CAROLINE:
I AM INTERESTED ON YOUR PERSPECTIVE ON THE TOTAL ADDRESSABLE MARKET BECAUSE AMD HAVE PUT OUT THIS $400 MILLION FIGURE. WHERE DO YOU STAND WHEN IT COMES TO THESE SORTS OF TRIPS? -- CHIPS? >> IT IS SO EARLY IN THE ADOPTION IT IS KIND OF IRRELEVANT. CURRENTLY, ABOUT 4%. REALLY DEPENDING ON WHAT YOU THINK, THE AI -- RIGHT NOW, NO ONE KNOWS.
EVEN ASSUMING THE NUMBER IS 400 BILLION, LET'S ASSUME NVIDIA TAKES 70% OF THAT AI CHIP MARKET AND IT IS NORMALIZED. SO MARGINAL 40% VERSUS TODAY 15% BECAUSE THEY HAVE SUCH BARGAINING POWER TO ITS CUSTOMERS BECAUSE OF A SHORTAGE OF SUPPLY AND PRODUCT MIX AND THAT IS 300 BILLION RUN RATE ANNUALLY AND WHICHEVER MULTIPLE YOU WANT TO PUT IT, YOU CAN ARGUE IT IS HARDWARE. IT IS THE INDUSTRY GOLD STANDARD, SO YOU PUT 25 TIMES AND NORMALIZE THE DEMAND CYCLE SO THAT GIVES YOU A 3 TRILLION MARKET CAP VERSUS TODAY, I GUESS ONE POINT SEVEN 2 TRILLION. SO WE ARE LOOKING AT CLOSE TO DOUBLING IN THE NEXT FEW YEARS. IT COULD BE BIGGER THAN THAT BECAUSE THE NUMBER CAN BE TOO LOW JUST AS THE NUMBER COULD BE CLOSER TO REALITY BUT NO ONE KNOWS. IT DEPENDS ON THE MARKET APPLICATION.
LOOK AT THE QUARTER'S MARGIN. THAT IS REALLY RARE. THE ONLY COMPANY I CAN THINK OF WITH A GROSS MARGIN CLOSER -- WHICH TELLS ME THAT THIS IS A STORY THAT DEMAND EXCEEDS SUPPLY AND THE COMPANY HAS SO MUCH BARGAINING POWER TO SUPPLIERS AND THERE'S TREMENDOUS OPERATING -- ECONOMY OF SCALE. CAROLINE: STILL MUCH TO BE MADE OF THIS PARTICULAR STOCK MOVE, MANY STILL FEELING THEY WANT TO GET IN. IT HAS BEEN BRILLIANT TO GET
YOUR EXPERTISE TODAY. LET'S CHECK IN ON THE BROADER MARKETS BECAUSE THERE IS REAL IMPACT HERE. THIS IS A GLOBAL REPERCUSSIONS STORY.
WE HAVE SEEN THE NASDAQ UP 2.3% BUT THE JAPANESE INDEX SURGED TO A NEW RECORD HIGH BECAUSE AI RELATED COMPANIES DID A LOT TODAY ON THE BACK OF THESE NUMBERS FROM NVIDIA. OVER IN EUROPE, A NEW RECORD HIGH AS WELL. THIS IS A TECH PLAY. THIS IS EUPHORIA AROUND THE PRODUCTIVITY GAINS WE CAN GET OUT OF AI.
WE WILL HAVE A LOOK AT OTHER RISK ASSETS. CRYPTO NOT SURGING IN THE SAME LOCKSTEP AS THE NASDAQ BUT WE ARE STILL UP ON THE DAY, AROUND THE ALMOST $52,000 LEVEL. REDDIT GEARS UP TO FILE FOR ITS INITIAL PUBLIC OFFERING SOON. DETAILS TO COME. AND SHARES OF AT&T AND VERIZON. IF YOU ARE OUT THERE TODAY WITH
AN AT&T CONTRACT, YOU HAVE HAD SOME PROBLEMS GETTING AROUND USING THE SERVICE. EVER SINCE 3:00 A.M., THERE HAVE BEEN ISSUES SHOWING THE NETWORK HAS BEEN FORCED OFF-LINE. WE ARE OFF BY 2.9 PERCENT ON AT&T. T-MOBILE AND VERIZON SAID THEIR NETWORKS WERE WORKING WELL BUT THEY WERE AFFECTED BY AT&T'S ISSUES. THIS IS BLOOMBERG TECHNOLOGY.
CAROLINE: GOOGLE PAUSING ITS AI MADE IMAGES OF PEOPLE AFTER CRITICISM ABOUT HOW IT WAS HANDLING RACE. GOOGLE SAID IT WAS AWARE THAT GEMINI WAS OFFERING WHAT IT CALLED INACCURACIES IN SOME HISTORICAL IMAGE GENERATION DEPICTIONS. THE COMPANY SAYS IT IS WORKING TO ADDRESS THE ISSUES. PLUS, A VENTURE FIRM HAS ADDRESSED -- INVESTED $100 BILLION IN A CRYPTO START UP, SUGGESTING SOME OF THE TOP BACKERS ARE STILL BETTING ON BLOCKCHAIN DESPITE A DOWNTURN IN CRYPTO VENTURE FUNDING. SOCIAL MEDIA PLATFORM REDDIT HAS STRUCK A DEAL WITH GOOGLE. IT WILL MAKE REDDIT'S CONTENT AVAILABLE FOR TRAINING THE SEARCH ENGINE GIANT'S ARTIFICIAL INTELLIGENCE MODELS, RAKING IN MUCH-NEEDED REVENUE EACH YEAR BY GIVING ACCESS TO ITS DATA.
THIS COMES AHEAD OF AN EXPECTED FINDING IN THE COMING DAYS FOR ITS ANTICIPATED IPO. WE ARE STARTING TO HEAR ABOUT THESE DEALS AND REVENUE-GENERATING DEALS COMES TO ACCESS TO DATA FOR TRAINING AI AHEAD OF WHAT COULD BE AN IPO FILING. >> OBVIOUSLY THEY ARE HOPING TO GET SOME BUZZ. AI IS A HOT CATEGORY NOW, SO REDDIT IS HOPING THIS AI PARTNERSHIP WILL EXCITE WALL STREET. CAROLINE:
THERE ARE A FAIR FEW COMPANIES WANTING DATA TO TRAIN AI MODELS ON, SO WE COULD SEE MORE OF IT FLOW IN AND GET MORE MONEY TO BE AGREED TO IF WE THINK IT WILL BE ABOUT $60 MILLION IN REVENUE PER YEAR. I'M INTERESTED IN WHY REDDIT WILL BE LOOKING TO FINALLY GO PUBLIC NOW. >> WHAT HAPPENED WAS REDDIT ANNOUNCED THEY HAD FILED FOR IPO BUT THAT WAS WHEN THE IPO WINDOW CLOSED FOR TECH IPOS, SO OTHER THAN INSTACART LAST SEPTEMBER, THOSE ARE THE ONLY TECH IPOS WE HAVE HAD IN OVER TWO YEARS.
SO REDDIT DID NOT RESTART THE IPO WINDOW. INSTACART TRIED TO, BUT NOW REDDIT WILL TRY TO REOPEN THE WINDOW AND PART TWO OF ATTEMPTING TO INCITE THE MARKET ABOUT TECH IPOS AGAIN. IT HAS BEEN A LONG TIME COMING. CAROLINE: EXCITING TO FINALLY GET SOME LIQUIDITY. WE THANK YOU SO MUCH FOR
BRINGING US EXPERTISE. MEANWHILE, LOSSES WIDEN AMID THE OVERALL EARNINGS WE GOT FROM AN ELECTRIC VEHICLE MAKER. WE WILL PASS THROUGH SOME OF THE NUMBERS BUT THE FORMER CEO IS LEADING DISCUSSIONS WITH STAKEHOLDERS.
LET'S TALK ABUT ANOTHER EV MAKER. RIVIAN IS TUMBLING 20% ON THE BACK OF NOT ONLY NOT LIVING UP TO EXPECTATIONS IN TERMS OF PRODUCTION BUT ALSO HAVING TO LAY OFF STAFF, DOWN SOME 28%. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: VINFAST SHARES HAVE BEEN MOVING AROUND BECAUSE REPORTS SHOW THAT LOSSES INCREASED DURING THE FISCAL FOURTH-QUARTER BUT REVENUE DID JUMP, DOUBLING FROM A YEAR ON YEAR BASIS. WE HAVE AN ACCELERATION OF AUTOMOBILE DELIVERIES. I'M INTERESTED ABOUT THAT LOSS WIDENING.
WHAT IS DRIVING THE LOSSES ESCALATING AT THE MOMENT? >> THERE WAS AN ADJUSTMENT OF THE INVENTORY. OTHERWISE, THE TREND HAS BEEN POSITIVE, SO THE ADJUSTMENT IS ABOUT 27%, -27% IN Q3, SO WE HAD -- WE ARE HEADING IN THE RIGHT DIRECTION. YOU SEE THE MARGIN GOING DOWN. CAROLINE: WE HAVE SEEN 513 DELIVERIES -- 13 -- WE HAVE SEEN DELIVERIES IN THE EV'S. HOW DO YOU GET TO YOUR TARGET? >> WE ARE THE ONLY ONE OF THE WORLD THAT HAS THE WHOLE LINEUP OF VEHICLES. THIS YEAR, WE START DELIVERING VEHICLES AS WELL SO WE HAVE THE FULL LINEUP AND MARKETS. WE ARE IN VIETNAM SO WE CONTINUE TO BE -- TO SUPPORT ABOUT HALF OF THAT FORECAST AND IT CONTINUES TO BE THE BIGGEST MARKET FOR US.
THE REST OF US ARE SPREAD ACROSS NORTH AMERICA AND ASIA AS WELL. WE BELIEVE WITH OUR LINEUP OF VEHICLES WE SHOULD BE ABLE TO ACHIEVE THE FORECAST. >> WITH THAT SUPPLY QUIT NEED TO HAVE DEMAND MEDIA GET ON THE OTHER SIDE. VIETNAM IS STILL YOUR BIGGEST MARKET AT THE MOMENT. TELL US ABOUT WHERE YOU LOOK TO EXPAND. YOU HAVE BEEN LOOKING AT THE
PHILIPPINES AND INDONESIA. WHERE IS THE DEMAND COMING FROM? WE HAVE SEEN IT WITH RIVIAN AND TESLA THAT THERE IS A PULLBACK, A SLOWING IN GROWTH OF DEMAND FOR ELECTRIC VEHICLES BECAUSE PEOPLE ARE WORRIED ABOUT INFRASTRUCTURE AND ABILITY TO CHARGE. >> WE HAVE SKEPTICISM IN ADOPTIONS. HOWEVER, THERE IS STILL ADOPTION IN ALL MARKETS, SO THE EV VEHICLE SALES INCREASE BY 12% IN U.S.
AND EUROPE LAST YEAR. EV SALES INCREASED BY 45%, SO THERE IS STILL AN INCREASE IN EV'S, STILL ADOPTION OF EV'S BUT STILL A MARKET FOR EV'S. THE FORECAST IS STILL 2.4 MILLION OF EV SALES THIS YEAR
IN THE U.S.. WE LOOK AT -- WE SHOULD BE ABLE TO GET SOME MARKET SHARE IN NORTH AMERICA. WE THINK THE VOLUME DRIVEN MARKETS IN THE FUTURE WILL BE CLOSER TO US, LIKE IN ASIA AND INDIA FOR EXAMPLE, THE MOST POPULOUS COUNTRY IN THE WORLD. AND ALSO VERY LOW ADOPTION NOW. CAROLINE: THANK YOU FOR BEING WITH US FROM HANOI LATE IN THE EVENING. COMING UP, MORE EARNINGS. WE ARE GOING TO BEGIN BACK TO THE BIG GAME IN TOWN, WHICH IS NVIDIA, REMAINING THE BIGGEST BENEFICIARY OF THE AI SPENDING BOOM. LET'S CHECK IN ON ANOTHER COMPANY.
EUROPEAN NAME DELIVERIES EURO. TAKING DOWN 3.3%. A GERMAN COMPANY WITH A LOT OF EXPOSURE IN ASIA. THEY ARE PUTTING ON ICE TALKS TO SELL FOOD PANDA. IT SEEMS TO HAVE FAILED AT THE MOMENT, SO THERE IS SOME WEAKNESS IN THAT PARTICULAR COMPANY TODAY, AT ONE POINT FALLING AS MUCH AS 4%. CAROLINE: WELCOME. LET'S GET A CHECK ON THE MARKETS. IT IS AN AI STORY.
THE NASDAQ 100 IS UP 2.5 PERCENT. THIS IS NOT JUST A U.S. STORY. YOU ARE SEEING GET PLAY OUT WITH THE JAPANESE NIKKEI HITTING A RECORD HIGH. STOXX 600 IS UP A RECORD HIGH. THE CHIPMAKERS ARE MANAGING TO
FLOURISH AT THE MOMENT. IT SEEMS TO BE AN ENORMOUS ADDRESS OF THE MARKET. NVIDIA UP 4.5%. LOOKING AT OTHER INDIVIDUAL NAMES, THERE HAVE BEEN EARNINGS, NVIDIA IS FRONT AND CENTER AT MORE THAN 15%.
SYNOPSIS IS ANOTHER AI PLAYER, UP AROUND 11%. RIVIAN, UGLY. OFF BY 27% AFTER THEY SLOWED THEIR PRODUCTION. THEY ARE MORE WORRIED ABOUT HAVING TO BE LAYING OFF PEOPLE. WE WILL DIG INTO SOME OF THE NAMES. LET'S HAVE A RETURN TO WHAT'S HAPPENING WITH NVIDIA. THEY WE ARE UP SIGNIFICANTLY, $250 BILLION OF INCREASED MARKET CAP. WE ARE ALMOST AT A $2 TRILLION
MARKET CAPITALIZATION. DESPITE THAT, THE STRUCTURE IS STILL CHEAP. PE FUTURE EARNINGS, THEY KEEP ESCALATING. FROM A FORWARD PE BASIS, WE ARE AT 33.
WE HAVE MORE ON ULTIMATELY A COMPANY THAT LOOKS THE PART. HAVE WE SEEN ANY OTHER COMPANIES ABLE TO DELIVER TWICE, 200% GROWTH, EXCLUDING WHEN IT COMES TO THE OVERALL EARNINGS SHARE AS WELL? >> I HAVE NOT. SURPRISED WITH THE IMMEDIATE EARNINGS IS NO LONGER A SURPRISE. MORE THAN THE MAGNITUDE, IT WAS THE QUALITY OF THE EARNINGS THAT WAS REASSURING TO US. ON THE SUPPLY SIDE, IT SEEMS SUPPLY KEEPS COMING IN STRONG. THEY HAVE DIVERSIFIED THE
SUPPLIERS. YOU SAW THAT IN THE GROSS MARGINS. MORE IMPORTANTLY WAS THE QUALITY OF THE DEMAND.
IT SEEMS DEMAND AND MOMENTUM IS CONTINUING BUT IT WAS ALSO THE BROAD-BASED DEMANDS. NOT JUST FROM THEIR LARGEST OUT PLAYERS BUT BEYOND THAT, TO THE HYPER SCALARS AND THE ENTERPRISES. >> THE ONE AREA OF DEMAND PEOPLE MIGHT BE CONCERNED ABOUT IS CHINA. THIS SEEMS TO BE AN AREA THAT
JENSEN IS FOCUSED ON, THINKING THEY CAN WIN AND THERE IS A PLACE FOR THEM IN THAT MARKET. >> WE SAW A SIGNIFICANT DROP IN CHINA. ALMOST A LOSS OF $2 BILLION IN THE DATA CENTER. WE DON'T THINK THIS HEADWIND IS GOING UP ANYTIME SOON, IF AT ALL , GETTING WORSE. IN THE NEAR TERM, IT SHOULD NOT
IMPACT BECAUSE THE DEMAND IS RUNNING AHEAD OF SUPPLY. THEY CAN EASILY SHIP THE PRODUCTS THEY WOULD HAVE LIKED TO SHIP TO CHINA TO OTHER COUNTRIES. IN THE LONG TERM, THIS TAKES A BITE OUT OF -- CHINA BEING THE SECOND LARGEST MARKET, IF THERE WERE NO RESTRICTIONS, THEY COULD HAVE GROWN MUCH FASTER FOR MUCH LONGER. CAROLINE: THE BLOOMBERG INTELLIGENCE ANALYST WHO HAD A LATE NIGHT AND A EARLY START. WE APPRECIATE IT A LOT. FEMA HOSTED THE 2024 CEO -- FEMALE FOUNDERS HOSTED THE 2024 CEO STOCK EXCHANGE. THIS IS BLOOMBERG TECHNOLOGY.
♪ CAROLINE: LET'S TALK ABOUT THE VENTURE COMMUNITY AND THE WOMEN IN IT. HERE IS WHAT ANNA DUGAL HAD TO SAY ABOUT THE VC ENVIRONMENT AND WHAT SHE IS SEEING FOR WOMEN IN THE TECH SECTOR. >> I THINK IT'S AN INTERESTING TIME. I THINK THE INVESTABLE CATEGORIES HAVE SHIFTED SIGNIFICANTLY. WE REMAIN EXCITED ABOUT DIGITAL HEALTH. WE JUST ANNOUNCED THE FUNDING,
THE SERIES WE WILL BE FUNDING THIS WEEK, WHICH IS INCREDIBLY EXCITING. BEAUTY AND PERSONAL CARE IS ANOTHER CATEGORY THAT WE THINK REMAINS RESILIENT. IT HAS SEEN INCREDIBLE EXITS AND OUTCOMES OVER THE PAST 12 MONTHS. VERTICAL SOFTWARE SOLUTIONS, THAT REMAINS A CONSISTENT THEME ACROSS THE LAST DECADE.
LASTLY, I WOULD SAY THE NEWER CATEGORY WHERE WE HAVE BEEN INVESTING IS CLIMATE TECH. CAROLINE: LET'S GO IN ON CLIMATE TECH. SOME WOULD SAY THAT GETS A LOT OF POLITICIZATION AROUND IT, PARTICULARLY IN AN ELECTION YEAR. HOW ARE YOU SEEING REAL WORLD USE CASES OF WHAT YOU ARE STARTING TO BACK? >> IT'S A FAIRLY BROAD CATEGORY. I WILL GIVE YOU A COUPLE OF
EXAMPLES. WE INVESTED IN A COMPANY LAST YEAR CALLED WATTS. IT'S A WASTE MANAGEMENT SOLUTION, HELPING LARGE HOSPITALITY PLAYERS DO A BETTER JOB OF MANAGING THE EXPENSE AROUND THEIR WAIST. WE INVESTED IN THE FIRST HYDROGEN POWER PRIVATE PLANE COMPANY, STARTED BY A FRENCH AERONAUTICS ENGINEER. WE THINK THERE IS A LOT OF OPPORTUNITY BUT AT THE END OF THE DAY, WHAT WE ARE REALLY LOOKING FOR IS WHERE ARE THE EXITS? ARE THESE CATEGORIES OR BUSINESSES THAT HAVE A LARGE ACQUIRED BASE? AND I THINK WITHIN CLIMATE TECH, THERE IS SO MUCH INTEREST AND SO MUCH NEED FOR BETTER PRODUCTS AND SOLUTIONS. CAROLINE: I'M SURE A LOT OF YOUR LPS ARE ASKING WHERE ARE THE EXITS AND YOU THINK A LOT ABOUT WHERE WE ARE IN THE LANDSCAPE RIGHT NOW, IPO MARKET, STILL NOT LOOKING THAT PRETTY.
HAVE YOU SEEN AN UPTICK IN MN A? HAVE YOU SEEN AN INTEREST IN YOUR PORTFOLIO COMPANIES? >> THE LAST 12-18 MONTHS HAVE BEEN CHALLENGING IN TERMS OF RAISING GROWTH CAPITAL AS WELL AS IPO MARKETS BEING CLOSED AND MNA FOR THAT MATTER. I THINK IF YOU LOOK TO THE REMAINDER OF THIS YEAR, IT'S GOING TO BE CHALLENGING. YOU HAVE AN ELECTION YEAR COMING UP. IT'S FUNNY. THERE WAS A MOTTO IN D.C.
CALLED SURVIVE TILL 25. I THINK IT'S GOING TO BE A TOUGH YEAR THIS YEAR. I THINK IF YOU ARE ABLE TO COME THROUGH, THAT'S THE ADVICE WE ARE GIVING OUR FOUNDERS.
CAROLINE: ISN'T IT AMAZING THAT YOU'VE CALLED IT THE YEAR OF WOMEN AND WE HAVE AT THE TAIL END OF 2024, THE ACHIEVEMENTS OF ULTIMATELY HOW MUCH ECONOMIC IMPACT BEYOND -- BEYONCE AND TAYLOR SWIFT HAVE HAD TOGETHER ON THE U.S. ECONOMY. YOU ARE A FOUNDER, HAVING SET UP A FEMALE FOUNDERS FUND. HOW ARE YOU SEEING YOUR ROLE CHANGE AND WHAT'S BEING ASKED OF YOU IN THIS PARTICULAR MOMENT FROM YOUR PORTFOLIO COMPANIES AND SOCIETY AT LARGE? >> I THINK THE SHIFT HAS REALLY BEEN LOOKING AT OUR PORTFOLIO COMPANIES AND THE ADVICE AND THE WAY WE WORK WITH THEM, THERE HAS DEFINITELY BEEN A SHIFT, I WOULD SAY, IN TERMS OF HOW WE GET FROM A MORE GROWTH AT ALL COSTS STRATEGY TO JUST RUNNING OUR BUSINESSES EFFICIENTLY.
THAT REQUIRES A LOT OF WORK ON THE BUDGET. IT REQUIRES THINKING THROUGH TEAM STRUCTURE AND REALLY HONING IN ON WHAT IT IS THAT YOUR BUSINESS NEEDS TO SURVIVE. THAT, I THINK FOR FOUNDERS, AS WELL AS VCS, IS A SKILL WE HAVE NOT NECESSARILY HAD TO LEVERAGE OR USE FOR OVER A DECADE. >> ANU DUGGAL. SHE IS PUTTING ON THE YEAR OF WOMEN CONFERENCE WHERE SHE PUT TOGETHER A WHOLE HOST OF FEMALE CEOS TO HAVE REAL TALK ABOUT THE ENVIRONMENT. FROM TRYING TO SURVIVE UNTIL 2025 TO THRIVING, WE HAVE ONE THAT IS. ONE OF THE COMPANIES THAT SHE
MENTIONED, A MATERNITY CARE CLINIC. IT HAS RAISED $28 MILLION TO EXPAND ITS TECHNOLOGY ENABLED AND HYBRID. HERE FOR MORE IS THE COFOUNDER AND CEO WHO IS HEAVILY PREGNANT RIGHT NOW YOURSELF. THANK YOU FOR COMING IN. I AM FASCINATED ABOUT RAISING SUCH MONEY IN THIS CURRENT ENVIRONMENT AS A FEMALE FOUNDER, AS A MATERNAL HEALTH COMPANY. WAS IT EASIER THAN THE SEED ROUTE YOU GOT OFF THE GROUND DURING THE DEPTHS OF COVID IN 2020? >> IN SOME WAYS, THEY WERE SIMILAR IN THAT IT WAS A TOUGH ENVIRONMENT TO BE RAISING IN 2020, APRIL, IF YOU GUYS REMEMBER WHAT YOU WERE DOING. PROBABLY NOT GOING TO A LOT OF
BRICK-AND-MORTAR BUSINESSES. THAT WAS A CHALLENGING ENVIRONMENT. IN SOME WAYS, WHAT MADE IT EASIER IN THIS ENVIRONMENT IS WE HAVE DATA NOW. WE ARE ABLE TO SHOW THAT THIS IS THE SOLUTION TO A REALLY BROKEN MATERNAL CARE SYSTEM. WHETHER THAT IS LOOKING FROM THE CONSUMER PERSPECTIVE OR FOR OUTCOMES OR FOR COSTS. EVEN IN A TOUGH ENVIRONMENT, I THINK BEING ABLE TO POINT TO A PROVEN MODEL MADE IT JUST A LITTLE BIT EASIER. CAROLINE:
THAT PROVEN MODEL BEING 1500 BIRTHS, FEWER C-SECTIONS AND PROBLEMATIC OUTCOMES FOR POSTNATAL CARE. TELL ME ABOUT THE TECHNOLOGY THAT YOU ARE BUILDING. WHY IS IT NECESSARY TO BE A TECH BUSINESS? >> WHAT'S KIND OF WILD ABOUT PREGNANCY CARE IS THE STATUS QUO LOOKS STRIKINGLY SIMILAR NOW TO WHAT IT DID 100 YEARS AGO, WHICH IS YOU HAVE A LOT OF ONE-ON-ONE VISITS OVER NINE MONTHS, EVEN THOUGH EVERYTHING ABOUT THE WORLD HAS CHANGED AND TECHNOLOGY HAS CHANGED. WE ARE TRYING TO MODERNIZE THAT EXPERIENCE AND BRING TECHNOLOGY INTO THE EQUATION.
THAT IS WHERE THINGS LIKE CREATING A BETTER CONSUMER EXPERIENCE, WE HAVE A PATIENT PORTAL THAT EXTENDS CARE OUTSIDE THE FOUR WALLS. DON'T JUST GET CONNECTION TO YOUR TEAM IN THOSE 13 VISITS. YOU ACTUALLY CAN TALK TO THEM AND GET CARE IN ALL THE MOMENTS IN BETWEEN WHICH IS WHERE PREGNANCY HAPPENS. WHEN YOU HAVE A QUESTION AT 2:00 IN THE MORNING OR YOU ARE STRUGGLING POSTPARTUM. IT IS EXTENDING BEYOND THE FOUR WALLS. CAROLINE:
I'M INTERESTED, AND THIS IS A TOUGH QUESTION, BUT GIVEN THE NEWS OUT OF ALABAMA, THE IDEA THAT THE SUPREME COURT IS THINKING OF RULINGS THAT RECOGNIZE ON IMPLANTED HUMAN EMBRYOS AS CHILDREN, I KNOW YOU GIVE CARE FOR A MISCARRIAGE. MANY HAVE SAID THIS COULD HAVE A CHILLING EFFECT ON MISCARRIAGE MANAGEMENT. HOW IS YOUR BUSINESS THINKING ABOUT EXPANDING OUTSIDE OF NEW YORK CITY AND WHAT STATES YOU GO INTO AND HOW YOU ARE ABLE TO ADDRESS THOSE LITERAL HEADWINDS? >> AT THE END OF THE DAY, WE ARE IN A BUSINESS THAT IS ABOUT SUPPORTING CHOICE. WHETHER THAT IS THE CHOICE FOR HOW YOU WANT TO GO THROUGH WITH YOUR PREGNANCY OR HOW YOU WANT A MIDWIFE TO BE INVOLVED IN CARE OR AN EPIDURAL, I THINK WE TAKE THE PRINCIPAL AND THE VALUES TO ANYWAY WHICH WE THINK ABOUT EXPANDING CARE AND SERVICES. AND KEEP THE AT THE FOREFRONT OF WHAT WE DO. WE THINK WOMEN IN BLUE STATES AND RED STATES NEED GREAT CARE AND WE ARE GOING TO BE DRIVEN MORE BY THE PATIENT DEMAND AND NEED FOR THE EXPERIENCE.
CAROLINE: WE WILL SEE YOU EXPAND OUTSIDE OF NEW YORK. TELL US WHERE YOU'RE GOING NEXT. THE COFOUNDER AND CEO OF OULA. GOOD LUCK IN THE NEXT FEW WEEKS WHEN IT COMES TO YOUR OWN FAMILY. I GOT THE CHANCE TO SPEAK WITH THRIVES GLOBAL CEO, ARIANNA HUFFINGTON. HEAR HER THOUGHTS ABOUT HOW AI CAN BE USED FOR POTENTIAL HEALTH BENEFITS.
>> WE ARE EXCITED AT THRIVE ABOUT THE WAY WE CAN BRING IN GENERATIVE AI INTO DAILY BEHAVIORS. IF WE LOOK AT THE DATA, WE SEE THAT THIS -- THESE FIVE DAILY BEHAVIORS OF SLEEP, FOOD, MOVEMENT, STRESS AND CONNECTION DRAMATICALLY AFFECT OUR HEALTH AND OUR LONGEVITY. THE PROBLEM IS THAT CHANGE IN BEHAVIORS IS NOT EASY. BUT WITH AI AND CREATING WHAT WE ARE BUILDING AND A COPILOT AND WELLNESS HEALTH COPILOT, IT IS KIND OF INCREDIBLE HOW THIS PERSONALIZATION CAN MAKE DRAMATIC CHANGES IN HOW WE ADOPT HEALTHIER HABITS THROUGH MICRO-STEPS. WE ARE BIG BELIEVERS IN SCIENTIFIC ADVISORY BOARD, LED BY BJ FOGG FROM STANFORD. IT IS SHOWING ALL THE DATA THAT TO CHANGE BEHAVIORS, YOU HAVE TO START SMALL. WE CALL THEM MICRO STEPS, TOO
SMALL TO FAIL. SMALL, DAILY CHANGES THAT INCREMENTALLY BECOME HEALTHIER HABITS. CAROLINE: THIS HYPER PERSONALIZATION, AS YOU REFERENCE IT, IS IT ALREADY A REALITY, ALREADY BEING DEPLOYED? HOW COMFORTABLE OR UNCOMFORTABLE ARE PEOPLE WITH THESE INTIMATE CUES? >> THAT'S WHAT'S SO INTERESTING. PEOPLE ARE CONFIDENT ABOUT GIVING THEIR OWN PERSONAL DATA, BIOMETRICS, LABS AND CALENDAR TO SHOW WHERE THEY NEED THE STRESS BREAKS, PROVIDED THEY GET HELP BACK, PROVIDED THEY GET VALUE AND PROVIDED THAT THEY ARE GIVEN TO OTHERS LIKE EMPLOYERS IN AN AGGREGATED WAY.
ONCE WE GUARANTEE THAT, THEN PEOPLE ARE WILLING TO SHARE PERSONAL DATA. AND KNOWING PERSONAL PREFERENCES AROUND SLEEP, AROUND FOOD, HOW YOU LIKE TO EXERCISE, IS CRITICAL, SO THAT THE MARGINS ARE HYPER PERSONALIZED. THE OTHER THING THAT IS REALLY IMPORTANT TO REMIND OURSELVES OF IS THAT THE HEALTH CARE SYSTEM RIGHT NOW IS BROKEN. IT IS UNSUSTAINABLE. WE ARE NOW SPENDING 70% OF GDP IN HEALTH CARE.
UP FROM 5% IN THE 1960'S. THE RESULTS ARE WORSE EVERY YEAR. CHRONIC DISEASES ARE SKYROCKETING. ONE STAT THAT I CAN'T GET OUT OF MY MIND IS THAT LAST YEAR, 150,000 -- THERE WERE 150,000 LEG AMPUTATIONS OF PEOPLE WITH DIABETES. THE HUMAN COST, THE HEALTH CARE COST IS TRULY UNSUSTAINABLE. THAT'S WHY LOOKING AT BEHAVIOR CAROLINE: LATER TODAY, A PRIVATE AMERICAN-MADE LUNAR LANDER, WHICH WAS LAUNCHED WITH A SPACEX ROCKET, IS ABOUT TO ATTEMPT LANDING ON THE MOON. IT WAS BUILT BY HOUSTON-BASED
INITIATIVE MACHINES. IF SUCCESSFUL, IT WOULD PUT THE U.S. BACK IN BUSINESS ON THE MOON FOR THE FIRST TIME SINCE THE APOLLO PROGRAM WAS CLOSED OUT 50 YEARS AGO. IT WOULD BECOME THE FIRST PRIVATE OUTFIT TO REALIZE A MOON LANDING. YOU ARE A DEPUTY DIRECTOR. YOU HAVE BEEN TRACKING THIS MISSION CLOSELY. IT IS AHEAD OF SCHEDULE.
IT LOOKS LIKE IT WILL BE LANDING SOFTLY, WE HOPE AT 4:30 P.M. NEW YORK TIME. WHAT DOES THE SIGNAL ABOUT THE WAY NASA DOES BUSINESS? >> THANK YOU FOR HAVING ME ON YOUR SHOW. FIRST OFF, THIS IS HUGE NEWS IF INTUITIVE MACHINES CAN STICK THIS LANDING TODAY. THIS IS BIG NEWS FOR COMMERCIAL SPACE. THIS IS BIG NEWS FOR THE UNITED STATES. WE HAVE NOT BEEN SINCE 1972. BUT THIS IS ALSO BIG NEWS FOR NASA BECAUSE IT VALIDATES THE APPROACH THEY HAVE TAKEN FOR LANDING ON THE MOON OF USING COMMERCIAL SERVICES TO DO THAT, WHICH IS VERY DIFFERENT THAN PRIOR WAYS NASA HAS DONE SPACE MISSIONS. CAROLINE:
WHAT'S INTERESTING IS IT CREATES OPPORTUNITIES FOR THIS PARTICULAR COMPANY WHO HAS SEEN ITS ULTIMATE MARKET VALUATION SKYROCKET ON THE POTENTIAL OF THIS SUCCESS. WHAT HAS IT BREATHED INTO THE ECOSYSTEM IN THE U.S.? >> THIS ONE PROGRAM THAT NASA HAS, WHICH I AM THINKING LOOKS A LOT LIKE FEDEX OR UBER TO THE MOON, WHERE NASA IS SAYING WE HAVE A PAYLOAD, WE HAVE SOMETHING WE WANT TO GET TO THE MOON'S SURFACE AND WE ARE PAYING FOR A COMPANY TO TAKE IT THERE. THERE ARE 14 COMPANIES ON THAT CONTRACT FROM ALL AROUND THE COUNTRY, INTUITIVE MACHINES FROM TEXAS. ASKED ROBOTIC -- ASTROBOTIC IS FROM PITTSBURGH, PENNSYLVANIA. THE GOAL IS TO CREATE COMPETITION AND MAKE IT CHEAPER AND MORE COST-EFFECTIVE TO GET SOMEBODY FROM EARTH TO THE MOON.
CAROLINE: NASA HAS FIVE COMMERCIAL ONES AS WELL. THE CONTRACT IS ROUGHLY $100 MILLION AND HAS ESCALATED SINCE WHEN IT WAS FIRST SIGNED ON. TALK US THROUGH HOW DIFFICULT IT MIGHT BE TO STICK THIS LANDING. WHAT FAILURES WE HAVE SEEN
RECENTLY OF WHAT'S GOING TO BE -- AND WHAT'S GOING TO BE SO IMPORTANT ABOUT THIS PARTICULAR ONE? >> I THINK WE FORGET HOW DIFFICULT IT IS JUST TO GET INTO SPACE. IF WE THINK ABOUT THAT IN THE CONTEXT HERE, THEY HAD TO GET INTO SPACE, THEY HAD TO GET FROM EARTH TO THE MOON AND ORBIT THE MOON. THE LAST STEP, LANDING ON THE MOON, IS PROBABLY THE HARDEST PART. WE ARE HAVING TO RELEARN HOW TO DO THAT SINCE WE HAVE NOT DONE THAT FOR SUCH A LONG TIME. THE PRE-PRIOR -- THREE PRIOR COMMERCIAL ATTEMPT TO LAND ON THE MOON DID NOT SUCCEED. I THINK ONE WAY TO LOOK AT
THESE MISSIONS IS HOW MAY BE THE TECH SECTOR WORKS AND HOW YOU CAN FAIL FAST AND LEARN A LOT FROM THOSE ACTIVITIES. ADMITTEDLY, THIS IS MY FIRST TV INTERVIEW. I'M GOING TO WATCH THIS LATER AND THINK I COULD HAVE DONE SOMETHING BETTER BUT I WILL TAKE THAT THE NEXT ONE. SOMETIMES YOU ONLY LEARN THROUGH DOING AND TRYING. CAROLINE: SAY THEY STICK THE LANDING AND IT ALL WORKS, WHAT DO WE SEE EVOLVE FROM THERE? WHAT ARE THE NEXT KEY LANDMARKS THAT WE WANT AND SPACE MARKS THAT WE WANT TO SEE COMING FROM SUCH COMPANIES AND NASA? >> ONE THING TO KEEP IN MIND, THIS IS A COMMERCIAL APPROACH TO DOING SPACE TO GETTING TO THE MOON.
IT IS STILL BANKROLLED BY THE GOVERNMENT. THIS IS NASA MONEY FUNDING THESE MISSIONS. IT'S HELPING TO LEARN HOW TO GET TO THE MOON, USING METHODOLOGIES TO GET TO THE MOON. INVESTIGATING NEW TECHNOLOGIES. STILL, IT'S GOVERNMENT MONEY.
WHAT WE ARE GOING TO WANT TO SEE IS HOW THESE FOUNDATIONAL CAPABILITIES AND WAYS TO DO BUSINESS IN SPACE, HOW THEN THOSE CARRY OVER INTO OTHER ECONOMIC DEVELOPMENT IN SPACE AND HOW PEOPLE LEARN TO FIND BUSINESS USES IN SPACE THAT ARE NOT NECESSARILY BASED ON GOVERNMENT MONEY. THAT COULD BE ANYTHING FROM ASTEROID MINING TO ELECTRICITY TO SOME KIND OF MANUFACTURING. CAROLINE: IT CERTAINLY DOES NOT FEEL LIKE IT WILL BE ONLY TV. THE DEPUTY DIRECTOR. WE WAIT WITH BAITED BREATH FOR 4:30 P.M. NEW YORK TIME.
THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. YOU DO NOT WANT TO FORGET TO CHECK OUT OUR PODCAST. ALL THINGS THE AI ECOSYSTEM AND ALL THINGS AS WE ANTICIPATE NOT ONLY THE IPO LISTING COMING
2024-02-25 21:04
