PC Sales, SoftBank and Holiday Box Office Trends | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM NEW YORK THIS IS BLOOMBERG TECHNOLOGY. PC SALES ARE STALLING CAUSING DELL TO FALL. PLUS SOFTBANK WANTS TO BOOST ITS STAKE IN OPENAI, LOOKING TO BUY 1.5 BILLION DOLLARS IN SHARES FROM THE STARTUPS EMPLOYEE. AND WICKED AND GLADIATOR II HAVE KICKED OFF WHAT IS LIKELY TO BE A STRONG SEASON FOR CINEMAS.
FIRST WE CHECK OUR MARKETS. WE HAVE A STRONG SET OF DATA IN THE ECONOMY. WE STILL HAVE PCE, THE GAUGE OF CONSUMER PRICE POINTS COMING IN WHERE WE EXPECTED, 2.8% GROWTH. THAT IS STILL STRONG AND MAYBE WE GET A MORE CAUTIOUS FED INTO A RATE CUTTING CYCLE.
WE SEE A SELLOFF IN THE MARKETS AS PERHAPS THAT IS THE CHANGING OF THE GUARD WITH THE FEDERAL RESERVE YOU. BIG TECH SELLS OFF THE MOST. NVIDIA DOWN MORE THAN 3%. WHAT LEADS US LOWER ON THE S&P IS SOME THE EARNINGS WE'VE GOT.
LET'S LOOK AT WHAT IS HAPPENING ON THE LIKES OF DELL, HP, BOTH KEY DRAGS ON THE S&P 500 TODAY. DELL OF 12%. BOTH OF THE SIGNIFYING THE RECOVERY IN PC DEMAND IS NOT REALLY HAPPENING AT THE PACE WE WERE ANTICIPATING. WE ALSO HAVE AI IN ALL OF THIS. WE CAN DO IT WITH BLOOMBERG'S BRODY FORD. LET'S START WITH DOUBT.
THIS IS A COMPANY THAT IS NOT ONLY FOCUSING ON THE AI SERVER PERSPECTIVE BUT THIS IS ABOUT PCN HARDWARE AND A RECOVERY THAT IS NOT HAPPENING. BRODY: I AM SPEAKING TO YOU ON A LAPTOP THAT I BOUGHT IN THE SUMMER OF 2020 AND I AM STILL HAPPY WITH IT. THEY WANT ME TO BUY A NEW ONE, I AM STILL STICKING WITH THIS LAPTOP THAT IS PUSHING FIVE YEARS OLD.
THE DATA SHOWS I AM NOT ALONE. IT SEEMS LIKE A LOT OF BUSINESSES AND CONSUMERS BOUGHT LAPTOPS IN THE EARLY DAYS OF THE PANDEMIC AND FOR A WHILE NOW THE HP'S AND DELL'S OF THE WORLD HAVE SAID THE PC MARKET RECOVERY IS JUST A QUARTER OR TWO OUT. IT IS COMING, IT IS TIME. AS WE HAVE SEEN IN THESE EARNINGS IT KEEPS GETTING PUSHED OUT AS FOLKS ARE TIGHT ON THEIR BUDGET AND SPENDING MONEY ELSEWHERE AND STILL HAPPY WITH THAT HARDWARE THEY GOT A COUPLE YEARS AGO. CAROLINE: ALL EYES ON THE FORECAST BEING A LITTLE BIT LESS THAN EXPECTED. WE HAVE MORE EARNINGS.
CROWDSTRIKE SHARES OF 4.5%. TO THE SUMMER, WE GO TO THE IMPACT ON MICROSOFT, WE THINK ABOUT THE OFF-LINE IMPLICATIONS OF CROWDSTRIKE. HAVE THEY RECOVERED? >> JULY 19 WE HAD THIS GLOBAL TECH OUTAGE AFTER CROWDSTRIKE PUSHED OUT A SOFTWARE UPDATE IMPACTING DEVICES USING WINDOWS OPERATING SYSTEMS. IT LOOKS LIKE IT WAS THE SECOND REPORT
SINCE THIS GLITCH AND IT LOOKS LIKE SALES HAVE NOT BEEN HIT BY IT. HOWEVER SHARES DROPPED WHEN INVESTORS READ ABOUT THE ESTIMATES FOR THE EARNINGS PER SHARE EARNINGS REPORT. IT IS $.84 TO $.86 WHEN ANALYSTS WERE EXPECTING $.87
WHICH SUGGEST THEY ARE NOT OUT OF THE WOODS QUITE YET AND THE HEADWINDS COULD CONTINUE. CAROLINE: TALK TO US ABOUT A $32 MILLION DEAL AND WHETHER WE ARE GETTING DEALS PUSHED OUT OR CANCELED OR ANY RETHINKING ULTIMATELY ON DEMAND FOR PRODUCTS COMING FROM CROWDSTRIKE? >> THE COMPANY DID REFER TO THIS DEAL IN THE EARNINGS REPORT BUT CURRENTLY THEY SEEM FOCUSED ON TALKING ABOUT THEIR PRODUCTS IN TERMS OF AI AND UPDATES THERE. IN TERMS OF DEALS WITH THE GOVERNMENT, THEY WERE PRETTY TIGHTLIPPED ON THAT. MORE TO SEE WITH THAT. CAROLINE: IT MUST BE NOTED THAT THIRD-QUARTER REVENUE DID COME IN BETTER-THAN-EXPECTED. THE BREAKDOWN ON WHAT HAPPENED WITH CROWDSTRIKE. MORE EARNINGS AND TECH MORE BROADLY. ANGELINE IS WITH US.
IT IS WONDERFUL TO HAVE SOME TIME WITH YOU. WE ARE TRYING TO UNDERSTAND WHETHER THIS WHOLE EXUBERANCE AROUND GENERATIVE AI, THE DESIRE TO GET INTO INFRASTRUCTURE IS IMPLICATING YOUR OR MY DEMAND FOR PC, YOUR OR MY DEMAND FOR PROTECTION AND CYBERSECURITY THAT INVOLVES GENERATIVE AI. IS IT BEING TRANSLATED YET? >> I THINK THERE IS A HUGE EXPECTATION ON GENERATIVE AI. IT HAS BEEN TWO YEARS SINCE THE LAUNCH OF CHATGPT. WHAT IS INTERESTING IS THE BUILD UP IS CREATING A LOT OF DEMAND FOR ALL SORTS OF NEW TECHNOLOGIES. YOU MENTIONED THE PC, THE SMARTPHONES.
NO ONE WOULD BE EXPECTED THAT A MAN TO BE SO HIGH EVEN A YEAR AGO. I THINK THAT TRICKLES DOWN TO PC SMARTPHONES. LACKLUSTER NUMBERS TODAY, BUT WHEN YOU THINK ABOUT AI ON THE EDGE AND WHAT CAN COME AROUND ANY SMARTPHONE INCLUDING THE IPHONE 17 WHICH IS ONLY EXPECTED TO INCREASE MEMORY BY 50% FOR THE NEXT ROUND OF INNOVATIONS, I THINK AI ON THE EDGE, HP WITH HIGH-BANDWIDTH MEMORY, MOORE'S LAW EMBEDDING MORE MEMORY IN ORDER TO RUN GENERATIVE AI. THAT BUILDUP IS CREATING A LOT OF DEMAND FOR DIFFERENT TECHNOLOGIES.
ALSO TO THE ACTUAL EQUIPMENT MAKERS WHO NOW SEE DEMAND FOR THIS ADVANCED PACKAGING I MENTIONED EARLIER. I THINK WHERE WE ARE IS ALSO AN S CURVE UP THE INFRASTRUCTURE BUILDOUT IS IMPORTANT. IN THE SECOND AND THIRD PHASE THERE ARE INTERESTING INVESTMENTS WE SEE IN SOFTWARE NOW STARTING TO EMBED MORE AND MORE IN GENERATIVE AI.
YOU MENTIONED CROWDSTRIKE EARLIER WHERE THERE IS A SHORTAGE WHERE GEN AI CAN HELP. CROWDSTRIKE HAS A PRODUCT THAT HELPS YOU FIND PROBLEMS OR DATA-DRIVEN INFORMATION AND BE USED WITHIN GENERATIVE AI AS WELL AS WITHIN THE PRODUCTS THEY SELL AND THAT IS QUITE INTERESTING. CAROLINE: THE QUESTION FOR MANY IS THERE IS INTERESTING S CURVES , THERE ARE INTERESTING OPPORTUNITIES. YOU TALK ABOUT THE BANDWIDTH WHERE YOU COULD BE ALLOCATING MONEY, BUT ARE VALUATIONS AFFECTING OPTIMISM THAT WE GET AI AND WE START ADOPTING IT? >> ON VALUATIONS IT IS AN INTERESTING DILEMMA.
THERE IS A LOT GOING ON IN TERMS OF THE PROFITABILITY OF REVENUES YOU SEE TODAY AND PROBABLY JUSTIFIES A LOT OF IT. I THINK MOVING FORWARD TO A BIGGER POOL OF POTENTIAL INVESTMENT OPPORTUNITIES BEYOND THE TECH STOCKS FOR THE INFORMATION TECHNOLOGY STOCKS, I THINK YOU SEE A LOT OF OTHER AREAS WHICH ARE NOT NECESSARILY RELATED TO I.T., WHICH CAN HAVE INTERESTING VALUATIONS, ALSO INTERESTING OPPORTUNITIES. YOU LOOK BEYOND AN INDEX OR BEYOND A HANDFUL OF STOCKS, THERE CAN BE INTERESTING OPPORTUNITIES WHERE THE VALUATIONS MAY NOT BE AS HIGH AND THE POTENTIAL REMAINS STRONG. CAROLINE: GIVE US SOME EXAMPLES. ARE YOU TALKING ABOUT ENERGY
OPPORTUNITIES OR OTHER SPACES WITHIN SOFTWARE THAT HAS NOT ALREADY BEEN PRICED IN LIKE PALANTIR? BRODY: WE LOOK AT EVERYTHING -- >> WE LOOK AT EVERYTHING LIKE SOME OF THE EQUIPMENT MAKERS THAT PLAY A BIG ROLE IN THE U.S. RE-SHORING. THERE HUGE SUBSIDIES AND HUGE INVESTMENTS THAT ARE ALREADY OUT THERE FOR A HUGE NUMBER OF THESE NEW BUILD OUTS OF SEMICONDUCTORS. CAROLINE: SO INTEL AND EVEN TSMC IN THIS ENVIRONMENT? >> IF YOU TAKE UNDER THEIR RE-SHORING SCORE MICRON OR TSMC AND INTEL AND SAMSUNG YOU HAVE 325 BILLION EXPENSES OUT THERE IN TERMS OF BUILDING OUT THESE MANY FACTORIES. I THINK THAT MEANS. EVEN INDUSTRIAL ROBOTICS WITHIN THOSE FACTORIES. THESE CHIPS ARE SO HEAVY YOU
NEED ROBOTIC ARMS TO CARRY THEM. THAT IS WHY YOU CAN LOOK BEYOND SOME OF THE OBVIOUS I.T. STOCKS THAT VERY OFTEN WOULD FALL INTO THAT CATEGORY OF VALUATIONS BEING TRICKY. CAROLINE: OR CB IS SO FASCINATING BECAUSE YOU STARTED FOCUSING ON THE BOND MARKET. YOU DIVED INTO NICHE AREAS EVERYONE IS NOW INTERESTED IN.
ROBOTICS, SECURITY. WHERE ARE WE GOING TO SEE ROBOTICS REIMAGINING COME IN? IS IT U.S.-BASED COMPANIES, IS IT GLOBAL? >> ON THE ROBOTIC SIDE YOU CAN LOOK AT EVERYTHING FROM INDUSTRIAL ROBOTICS, FACTORY ARMS THAT HELP YOU BUILD SEMICONDUCTOR CHIPS, BUT THE AUTOMATION BEHIND ROBOTICS IS QUITE INTERESTING IN TERMS OF EXPANDING THROUGH SOFTWARE THROUGH ALL OF THESE DATED DRIVEN DECISIONS FOR INDUSTRIAL AND ENTERPRISE. THERE IS A VERY INTERESTING CHART ARGUES ABOUT THE GROWTH SINCE 2021 TO 2030 ABOUT THE SEMICONDUCTOR INDUSTRY. YOU SEE THE GROWTH RATE IS QUITE INTERESTING, THE AUTOMOTIVE AND INDUSTRIAL SECTOR. THAT IS ALSO DRIVING A LOT OF
M&A. EVEN SYNOPSYS, THERE IS M&A IN THAT SPACE. THE HARDWARE IS SOMETHING THAT IS SUPPLEMENTED MORE AND MORE WITH THE SOFTWARE BUT ALSO THE DATA-DRIVEN DECISIONS. I THINK THAT IN THE FIELD OF ROBOTICS WILL BE INTERESTING MOVING FORWARD. CAROLINE: GREAT TO HAVE SOME TIME WITH YOU. COME BACK. COMING UP, WILL BE JOINED BY THE CEO ON THE COMPANIES EARNINGS RESULTS. THIS IS BLOOMBERG TECHNOLOGY.
CAROLINE: INFRASTRUCTURE SOFTWARE COMPANY REPORTED FISCAL FIRST-QUARTER RESULTS AND GIVE OUTLOOK SEEN AS POSITIVE BY ANALYSTS. SHARES TRADING LOWER. LET'S TALK ABOUT IT WITH THE CEO. PEOPLE FEELING THAT PERHAPS YOU HAD A GOOD SET OF GROWTH BUT A CAUTIOUS OUTLOOK, PARTICULARLY WHEN IT COMES TO FEDERAL SPENDING. CAN YOU TALK US THROUGH SOME OF THAT CAUTION.
>> RATE TO BE ON HERE. WE HAD A GOOD QUARTER AND EXCEEDED ALL OF OUR GUIDED METRICS. WHY WAIT RAISED OUR FREE CASH FLOW GUIDE. WE HAD A WEEK FEDERAL BUSINESS THAT IS USUALLY THE PEAK BUSINESS FOR THE FED.
WE EXPECT FED SPENDING TO RETURN TO NORMAL LEVELS IN Q2 BUT THEN WE HAVE A NEW ADMINISTRATION COMING ON IN JANUARY. WE DO NOT EXACTLY KNOW WHAT IS GOING TO HAPPEN BUT WE HAVE TO ADAPT TO WHAT MAY HAPPEN WITH THE NEW ADMINISTRATION. WE ARE BEING A BIT CAUTIOUS ABOUT THE FED OVERALL FOR THE REST OF THE YEAR. IS ONE OF THE REASONS WE KEPT OUR FULL-YEAR REVENUE OUTLOOK THE SAME. CAROLINE: THE LAST THREE MONTHS YOUR
SHARES HAVE DONE WELL. MORGAN STANLEY WAS PUTTING IT OUT THAT THEY FEEL TECHNOLOGY SPENT IS MORE IMMUNE THAN THE BELT-TIGHTENING WE WILL SEE MORE BROADLY WITH THE NEW ADMINISTRATION. DO YOU FEEL THAT VIEWPOINT? USUALLY YOU WRITE OUT ANY CUTBACKS? >> FUNDAMENTALLY WHEN I LOOK AT EVERY COMPANY, OUR BECOMING SOFTWARE ENTITIES MORE AND MORE BECAUSE THEY RELY ON APPLICATIONS AND DATA TO DRIVE THEIR BUSINESSES MORE SO THAN EVER. FROM THAT PERSPECTIVE THEY HAVE TO MAKE THE RICE INVESTMENTS AND TECHNOLOGY.
TECH SPENT WILL DO SLIGHTLY BETTER. SOFTWARE SPENDING WILL BE BETTER BECAUSE THEY HAVE TO INVEST IN THESE KEY INITIATIVES. THAT IS WHAT WE THINK OF AS A COMPANY WHEN CUSTOMERS PICK US TO RUN DATA. CAROLINE: I'M INTERESTED THAT WITH THAT COME SUPPLY CHAIN HEADACHES YOU HAVE SUFFERED IN THE PAST. I GO
ABOUT A FEW YEARS AND YOU ARE WELL VERSED A TALKING US THROUGH MACRO HEADWINDS. WHEN YOU LOOK AT GEOPOLITICS TO HAVE ANY WORRIES ABOUT YOUR OWN SUPPLY CHAIN AND ACCESS TO CERTAIN HARDWARE? >> WE ARE A SOFTWARE COMPANY BUT CUSTOMERS RUN OUR SOFTWARE ON HARDWARE. THERE ACCESS ON HARDWARE IS IMPORTANT AND THAT IS THE DIRECT DEPENDENCY WE HAVE.
WHAT WE HAVE DONE ON OUR FRONT IS PROVIDED A LOT OF DIVERSITY AND FOR OUR CUSTOMERS. THEY CAN TAKE THEIR CHOICE OF SERVERS ACROSS THE SPECTRUM, ANY SERVER AND RUN OUR SOFTWARE ON IT. THAT HELPS THEM DIVERSIFY FROM ANY SUPPLY CHAIN SHORTAGES THAT MIGHT COME ON BOARD BECAUSE THEY DO HAVE THIS BROAD CHOICE. THE SOFTWARE COMPANY WE TRY TO PROVIDE FLEXIBILITY AND FREEDOM OF CHOICE SO OUR CUSTOMERS CAN CONDUCT THEIR BUSINESS. CAROLINE: ON THE SAME DAY OF YOUR NUMBERS WE DIGEST DELL, BIG AI SERVERS AND GROWTH THERE FOR THEM. I'M INTERESTING HOW THE MARKET IS DIGESTING YOUR OWN GENERATIVE AI FOCUS? >> OUR FOCUS IS PRETTY EARLY. AI AND THE MARKET, A LOT OF
MONEY HAS BEEN SPENT TRAINING LARGE LANGUAGE MODELS WITH A SMALL NUMBER OF HIGH SPENDERS. THE VAST MAJORITY OF ENTERPRISES AND GOVERNMENT ORGANIZATIONS, THESE ARE OUR CUSTOMERS. THERE IS 100,000 AROUND THE WORLD. THEY ARE STILL IN THE EARLY STAGES OF DEPLOYING AND ADOPTING GENERATIVE AI. MOST OF THEM ARE GOING TO BE CONSUMING THESE MODELS AND THEY WILL BE USING IT FOR FINE TUNING AND INFERENCING SO THEY CAN GET REAL PRODUCTIVITY GAINS. THEY'VE IMPROVED CUSTOMER SUPPORT AND GET BETTER MEANS TO DO FRAUD DETECTION AS AN EXAMPLE. THESE ARE SOME OF THE APPLICATIONS COMPANIES AROUND
THE WORLD AND ORGANIZATIONS ARE TRYING TO BUILD. WE PROVIDE A SIMPLE PLATFORM THAT PROVIDES A WAY FOR THEM TO BUILD AND DEPLOY GENERATIVE AI INFERENCING APPLICATIONS. THAT MARKET IS STILL EARLY. MOST COMPANIES ARE INCUBATING
THESE APPLICATIONS. WE HAVE SEEN SOME GO TO PRODUCTION. I THINK 2025 AND 2026. CAROLINE: IS GREAT TO HAVE SOME TIME WITH YOU. COMING UP, PRESIDENT-ELECT DONALD TRUMP'S PICK FOR TRADE ONCE TO STEER CLEAR OF CHINA. DETAILS NEXT. CAROLINE: PRESIDENT-ELECT DONALD TRUMP'S PICK FOR THE TOP TRADE POSITION SEES CHINA AS A GENERATIONAL CHALLENGE DENIED STATES AND HAS ADVOCATED FOR A STRATEGIC DECOUPLING FROM THE COUNTRY AND IS PLAYED A KEY ROLE IN IMPOSING TARIFFS ON CHINA DURING TRUMP'S FIRST TERM.
LET'S GET TO GRIPS FROM A TECH PERSPECTIVE WITH MIKE SHEPPARD. WE ARE GETTING THE FEELING THAT ANYONE WITH EXPOSURE TO CHINA SUPPLY CHAIN WILL HAVE A TOUGH TIME. THAT -- >> THAT IS RIGHT. THE SELECTION OF GREER SIGNALS
THE DIRECTION OF TRAVEL FOR THE UPCOMING ADMINISTRATION THAT MAY BE HARDER FOR COMPANIES TO AVOID. THERE IS BEEN SOME HOPE THAT THE NAMING OF SCOTT PERCENT AS THE INCOMING TREASURY SECRETARY COULD MEAN TRUMP MIGHT TEMPER HIS DESIRE TO IMPOSE TARIFFS OF AS MUCH AS 60% ON CHINESE GOODS THE WAY HE HAD PROMISED ON THE CAMPAIGN TRAIL. PICKING JAMISON GREER FOR THIS KEY TRADE POSITION THAT WILL NEGOTIATE AN ELABORATE U.S. TRADE POLICY SUGGEST OTHERWISE VERY MUCH SO. WHEN WE TALK ABOUT THE STRATEGIC DECOUPLING, GREER HAS LEFT US A FEW CLUES.
HE HAS FLOATED THE IDEA OF REVOKING CHINA'S PERMANENT NORMAL TRADE RELATIONS STATUS. THIS IS ONE THAT WAS GRANTED TO BEIJING IN 2000 WHEN CHINA WAS TRYING TO ENTER THE WTO. THAT WOULD PUT CHINA ON THE SAME FOOTING AS RUSSIA AND CUBA AND NORTH KOREA AND SUBJECT CHINESE GOODS TO A RANGE OF TARIFFS THERE EXEMPTED FROM RIGHT NOW. THE OTHER THING HE HAS TALKED ABOUT DOING IS EXPANDING EXPORT CONTROLS OF THE KIND WE'VE SEEN THE BIDEN ADMINISTRATION IMPOSE ON A RANGE OF TECH PRODUCTS AND ALL THIS HAS HUGE RAMIFICATIONS FOR COMPANIES LIKE APPLE AND INTEL AND EVEN VENTURE INVESTORS. CAROLINE: EXACTLY. I AM TIM COOK READING THIS HYPOTHESIS ON THE GENERATIONAL CHALLENGE. IN MY CONFIDENT THAT I WILL GET
SOME EXEMPTION? MICHAEL: IF YOU ARE TIM COOK YOU ALREADY KNOW DONALD TRUMP PRETTY WELL FROM HIS FIRST TERM IN OFFICE AND YOU WILL REMEMBER THE EXPERIENCE THAT YOU WENT THROUGH AS HE IMPOSED TARIFFS ON GOODS COMING IN FROM CHINA AND HE KNOWS HE WILL NEED TO INTERCEDE AND INTERVENE PRETTY QUICKLY AND PERSONALLY WITH THE PRESIDENT. DONALD TRUMP IS SOMEONE WHO LIKES TO ENGAGE WITH CEOS AND BUSINESSES AND IS WILLING TO HEAR THEM OUT. THE TIME TO ACT IS SOONER RATHER THAN LATER. YOU CAN EXPECT TOP EXECUTIVES WILL BE TRYING TO GET DONALD TRUMP'S YEAR AND ALSO TALKED TO JAMISON GREER AND OTHER TOP ECONOMIC OFFICIALS LIKE SCOTT BESSENT, THE INCOMING TREASURY CHIEF, AND ALSO THE PERSON HE DESIGNATED AS HIS NATIONAL ECONOMIC COUNCIL DIRECTOR AND THAT IS KEVIN HASSETT. CAROLINE:
ANOTHER PERSON RECOGNIZED FROM THE FIRST ADMINISTRATION. MIKE SHEPPARD, THANK YOU SO MUCH. ONE KEY CEO WHO HAS TRUMP STEER, LET'S GET TO TODAY'S TECH DAILY. ELON MUSK IS ABOUT TO TWITTERIZE THE U.S. GOVERNMENT IT IS NEW OFFICIAL ROLE AS THE HEAD OF THE DEPARTMENT OF GOVERNMENT EFFICIENCY, AND UNOFFICIAL TRUMP GROUP TEST WITH IDENTIFYING $2 TRILLION IN SPENDING CUTS. WE CAN DEBATE WHETHER $2
TRILLION IS EVER A REALITY. WE CAN KIND OF SENSE WHAT IS COMING FROM WHAT HAPPENED TO TWITTER. >> WE HAVE BEEN HERE BEFORE. TWO YEARS AGO WE WERE WATCHING HIM BASICALLY GO INTO ANOTHER INSTITUTION, IN THIS CASE TWITTER, AND GOT THE COMPANY. WE ARE SEEING A LOT OF THE SAME STRATEGIES COME FORWARD IN THIS SORT OF FIRST COUPLE WEEKS OF THE DEPARTMENT OF GOVERNMENT EFFICIENCY. HE SAID HE WILL ELIMINATE WORK FROM HOME.
HE WILL HAVE DRAMATIC COST CUTS ON HEADCOUNT FOR PEOPLE. WE KNOW HE IS GOING TO DO THINGS AT A MILLION MILES PER HOUR. THAT IS WHAT ELON MUSK DOES WITH EVERYTHING. THE POINT OF THIS COLUMN THIS
MORNING WAS FROM -- WAS TERMITE PEOPLE THAT WHEN HE DID THAT AT TWITTER HE DID SUCCEED IN THE SENSE THAT TWITTER STILL OPERATES ON A MUCH SMALLER BUDGET THAT HE DID BEFORE, BUT HE BROKE A LOT OF THINGS ON THE WAY. CAROLINE: HE BROKE AND HE MADE THE POINT IT MIGHT BE ACHIEVABLE BUT IS IT HEALTHY? ONE SOCIAL MEDIA PLATFORMS VERSUS THE U.S. GOVERNMENT FUNCTIONING IS A VERY DIFFERENT THING. >> IT IS NOT A PERFECT APPLES TO APPLES COMPARISON BUT I THINK WHAT WE SAW FROM THE TWITTER EXAMPLE WAS THAT HE WAS VERY COMFORTABLE SAYING WE WILL DO THESE CUTS, WE WILL DO THEM AS FAST AS POSSIBLE AND THEN WE WILL GO BACK AND FIX THINGS AFTERWARDS. I DO NOT THINK IT WILL BE THAT
SIMPLE WHEN YOU DO THIS AT THE SIZE AND SCALE OF THE U.S. GOVERNMENT. MY HOPE AS A CITIZEN OF THE U.S. IS HE IS MORE THOUGHTFUL AND HE DOES NOT JUST SLASH AND BURN AND TRY TO GO BACK AND FIX THOSE MISTAKES LATER ON BECAUSE THAT MIGHT NOT BE POSSIBLE IN THE GOVERNMENT SITUATION IN THE SAME WAY HE TRIED TO DO WITH TWITTER. CAROLINE:
THAT IS A GREAT READ. CHECK OUT THE TECH DAILY TODAY. THANK YOU SO MUCH FOR COMING ON. COMING UP, SOFTBANK LOOKING TO BOOST A STAKE IN OPENAI. WE ARE DISCUSSING HOW THAT IS NEXT. THIS IS BLOOMBERG TECHNOLOGY. ♪ CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." LET'S TALK ABOUT CRYPTO AND THE
FUTURE OF IT AT THE MOMENT WITH THE RELATIVELY UNDERFUNDED REGULATOR THAT HAS BEEN OVERSHADOWED BY THE SEC, NOW A PATH TO PROMINENCE IF THE INCOMING TRUMP CRYPTO POLICY. REPUBLICANS CONTROLLING CONGRESS AND THE WHITE HOUSE, THE AGENCY'S JURISDICTION MIGHT EXPAND DRAMATICALLY, INCLUDING TWO MAJOR TOKENS SUCH AS BITCOIN. LET'S BRING IN BILL HARRIS FOR MORE ON HOW WE SHOULD BE THINKING ABOUT CRYPTO, CEO OF EVERGREEN WEALTH AND ALSO FORMER CEO OF PAYPAL AND INTUIT. WHEN YOU ARE LOOKING AT THE
REGULATORY OVERVIEW, SUDDENLY EVERYONE PULLING UP ASKING HOW INVESTMENTS IN CRYPTO ARE LOOKING AND HOW THEY SHOULD MAKE THE MOST OF THEM, YOU MAKE CHANGES AHEAD OF AN ADMINISTRATION CHANGE? BILL: WHAT YOU DO IS TRY TO ANTICIPATE WHERE IT IS GOING. IN FINANCIAL TECHNOLOGY THERE IS LIKELY TO BE A SIGNIFICANT REDUCTION IN THE REGULATORY BURDEN FOR PARTICULARLY THE PEOPLE WHO WORKING WITH NEW ASSETS SUCH AS CRYPTO. CAROLINE: PAYPAL HAS BEEN MAKING INROADS INTO THAT SPACE. THEY HAVE BEEN OFFERING IT FOR MORE. HAS THIS BECOME A MORE
UBIQUITOUS ASSET CLASS? BILL: AS IT STARTS TO SHOW UP IN ETF'S AND THINGS LIKE THAT, YES. IN TERMS OF HOLDING, I DON'T THINK SO. MOST OF THE PEOPLE WHO WANT TO HOLD IT DIRECTLY ARE ALREADY WORKING THROUGH EXCHANGES. CAROLINE: BEFORE I GET ONTO WHAT EVERYONE IS ASKING YOU ABOUT HOW TO HOLD CRYPTO AND HOW TO MAKE IT THE MOST BENEFICIAL, I WANT TO KNOW WHICH YOUR HAT ON HAVING LED BUSINESSES SUCH AS INTO IT AND PAYPAL, HOW DO YOU START TALKING TO PEOPLE IN GOVERNMENT? HOW DO YOU START TALKING WITH YOUR EMPLOYEE BASE HOW THINGS MIGHT LOOK MORE IN CERTAIN -- MORE UNCERTAIN INTO THE NEW YEAR? BILL: IN TERMS OF TALKING TO GOVERNMENT IT IS IMPORTANT TO TRY TO MAKE CONTACTS WITH PEOPLE WHO ARE LIKELY TO BE IN DECISION-MAKING POSITIONS, PARTICULAR IN MY CASE. BUT THE EMPLOYEES THERE IS NOT A WHOLE LOT TO SAY. WE FOCUS ON INVESTMENT TAXES AMONG OTHER THINGS.
IT IS LIKELY TO BE MORE OF THE SAME RATHER THAN BIG CHANGES. THE REASON BEING THE REAL UNKNOWN HAS BEEN WHETHER THE TAX CUT AND JOBS ACT WOULD BE EXTENDED AT THE END OF 2025. IT IS NOW CLEAR IT WILL BE EXTENDED. WHAT IS THE IMPACT? THE IMPACT AS THERE WILL BE NO CHANGES IN MANY ASPECTS OF THE INVESTMENT TAX ARENA. CAROLINE: LET'S TALK ABOUT WEALTH BUILT UP DURING 2024? CRYPTO HAS EXPLODED.
WHAT DOES ONE DO? DOES ONE THEREFORE SELL OUT IF IT IS THAT SORT OF A FUN THEY HAVE BEEN GETTING INTO? WE ARE NOT TALKING ABOUT YOUR 401(K). WE'VE BEEN TALKING ABOUT PEOPLE WHO BEEN TRAINING THIS. BILL: FROM A TAX POINT OF VIEW CRYPTO IS A MESS. IT IS NOT TREATED LIKE CURRENCY. IT IS TREATED AS PROPERTY.
THAT MEANS IT IS TAXED THE SAME WAY MOST SECURITIES ARE. YOU HAVE CAPITAL GAIN. CAPITAL GAIN IS THE BEST KIND OF INCOME TO BE TAXED ON. IT IS LOWER TAX RATE THAN
ORDINARY INCOME. IT IS ALSO -- THERE ARE MANY THINGS YOU CAN DO ABOUT THE TIMING OF RECOGNIZING CAPITAL GAINS. IF YOU DO NOT DO THAT, IF YOU DO NOT THINK ABOUT THE TIMING, THEN YOU WILL BE HIT BY ANYTHING FROM 20% TO 35% CAPITAL GAINS TAX WHEN YOU SELL AT A GAIN. THERE ARE SOME REALLY TERRIFIC THINGS YOU CAN DO TO REDUCE, OFFSET, TOUGHER, OR ELIMINATE THAT CAPITAL GAINS TAX BUT YOU HAVE TO BE SMART ABOUT IT.
CAROLINE: WE ARE TALKING ABOUT TAX EFFICIENCY, NOT TAX AVOIDANCE. WHAT IS EFFICIENT, ESPECIALLY IF YOU'RE THINKING THIS IS THE TIME OF YEAR I WILL BE GIVEN KIND OF PERSON? THERE IS A LOT OF CHARITABLE GIVING YOU CAN DO BY LOCKING IN THOSE GAINS. BILL: BOTH CHARITABLE GIVING AND FAMILY GIFTING ARE WAYS YOU CAN ELIMINATE THE CAPITAL GAINS YOU WOULD OTHERWISE PAY. IF YOU'RE GOING TO DO A CHARITABLE DONATION, THE BEST WAY TO DO IT IS WITH A DONOR ADVISED FUND.
THE REASON IS THIS. THERE ARE TWO BENEFITS FOR GIFT GIVING TO CHARITY. NUMBER ONE, YOU DO NOT PAY ANY UNREALIZED CAPITAL GAINS. YOU NEVER PAY TAX ON THAT UNREALIZED GAIN. WHAT IS THE PROBLEM? THERE ARE NOT MANY CHARITIES ABLE TO EVEN CONTEMPLATE TAKING CRYPTO.
YOU HAVE TO PASS IT AS CRYPTO. YOU CANNOT YOURSELF TURN IT TO FIAT AND THEN PASS IT BUT -- A DONOR ADVISED FUND ALLOWS YOU TO PUT THE CRYPTO INTO THE FUND. YOU CAN TAKE THE TAX-EXEMPT AND THIS YEAR AND THEN DECIDE WHEN YOU WANT TO DONATE AND TO WHOM ANY TIME YOU LIKE FOR THE NEXT INDEFINITE PERIOD OF TIME. CAROLINE: AS SOMEONE WHO IS TRYING TO MAKE ELDIN WEALTH AS TECHNOLOGICALLY ADVANCED AND FORWARD THINKING AS POSSIBLE, YOU'VE ALREADY RUN BUSINESSES AT THE FOREFRONT OF FINTECH AND DIGITAL ADOPTION. HOW DO YOUR CONSUMERS FEEL
RIGHT NOW, HOW DO YOU FEEL AS A BUSINESS LEADER ABOUT CONFIDENCE BUILDING IN THE U.S. ECONOMY AND WHETHER OR NOT IT IS FIT FOR PURPOSE FOR YOUR PARTICULAR BUSINESS? CAROLINE: I BELIEVE IN THE -- BILL: I BELIEVE IN THE U.S. ECONOMY. THE BIG CHALLENGE IS TARIFFS. MOST ECONOMISTS WHO LOOK AT
THAT SAY THIS IS LIKELY TO ACCELERATE INFLATION RATES AND INFLATION RATES DO A WHOLE LOT, PARTICULATE FROM THE POINT OF VIEW OF DRIVING INTEREST RATES WHICH DIRECTLY IMPACTS ANY INVESTOR WITH SIGNIFICANT ASSETS. CAROLINE: FOR THE CUSTOMERS YOU NOW HAVE AN MANY WATCHING, BILL HARRIS, CEO OF EVERGREEN WEALTH. NOW IT IS TIME FOR TALKING TECH. BLACK FOREST LABS, GERMAN AI STARTUP THAT HELPS ELON MUSK PRODUCE IMAGES IS IN TALKS TO RAISE AS MUCH AS DOLLARS FROM INVESTORS. ALL OF THIS LESS THAN FOUR MONTHS AFTER IT LAUNCHED. PLUS DELIVERY HERO BOOSTED THE PUBLIC LISTING SIZE OF ITS MIDDLE EASTERN UNIT BY AS MUCH AS $2 BILLION. THE DEAL IS ON TRACK TO BE THE UNITED ARAB EMIRATES BIGGEST LISTING OF THE YEAR.
APPLE IS MISSING OUT ON THE BIG 2024 SMARTPHONE MARKET REBOUND. IT ACTUALLY SAYS APPLE BARELY MANAGED GROWTH PEOPLE -- EVEN AS SMARTPHONE SALES DECLINED. APPLE REMAINS BY FAR THE PROFIT LEADER OVER ITS ENJOYED RIVALS. LET'S DOVETAIL INTO WHAT IS HAPPENING ON THE MARKETS. WE HAVE SEEN THE NASDAQ UNDER PRESSURE.
WE ALSO WANT TO -- WE ARE OFF BY 1.1% ON THE NASDAQ. NVIDIA IS THE BIGGEST POINT THAT DRAGS US LOWER AS WE WORRY ABOUT THE FED CUTTING. HERE IS ANOTHER EXAMPLE OF A COMPANY HAVING ISSUES WITH AUDITING AND REPORTING, CUTTING ITS OUTLOOK GOING FORWARD, COUNTING ERRORS IS WHAT THEY'RE CURRENTLY SAYING, THEY CANNOT FILE THEIR 10K ON TIME. WE ARE OFF 40% OVER LAST TWO TRADING DAYS.
WORRIED ABOUT THE REVENUE FORECAST GOING FORWARD. LOWERING 480 TO $500 MILLION. WHAT IS INTERESTING IS THIS COMPANY WENT PUBLIC VIA SPAC. SOFTBANK'S VISION FUND HAD
FLIPPED THIS COMPANY. WE ARE LOOKING MORE AT SOFTBANK. THE COMPANY IS AIMING TO INCREASE ITS STAKE IN OPENAI, ACQUIRING UP TO $1.5 BILLION. THAT IS ACCORDING TO SOURCES. MARK BERGEN JOINS US NOW. SOFTBANK IS ALWAYS ACTIVE, THEIR PARTICULAR HE ACTIVE IN ARTIFICIAL INTELLIGENCE. HOW WILL THEY ACCESS THIS MONEY? MARK: THEY HAVE BEEN RELATIVELY QUIET AFTER THE BIG SPURT WE SAW FROM 2017 TO 2021. THEY ARE NOW ALL IN. THEY ARE LIMITED TO 500 MILLION. NOW THEY HAVE THIS ARRANGEMENT
WHERE THEY ARE ABLE TO DO A SECONDARY SHARE SALE FROM OPENAI THAT WILL FREE UP 1.5 BILLION AND GIVE HIM HIS OPPORTUNITY TO GET THIS TRANSFORMATIONAL COMPANY. CAROLINE: HE HAS ALREADY PUT SOME MONEY TO WORK. $1.5 MILLION IS A LOT OF EMPLOYEES SELLING. DO WE THINK THEY WILL MEET THAT
MARK? MARK: MY EXPECTATION IS OPENAI DID A LOT OF THE MATH BEFORE HAND. IT WILL BE CURIOUS TO SEE IF SOME EMPLOYEES HOLD ON TO IT, THEY WILL BE ABLE TO MAKE MORE LATER ON. THIS IS SOMETHING SAM ALTMAN HAS TALKED ABOUT DOING THESE WITH REGULARITY, SOMETHING WHERE WE SEE COMPANIES LIKE STRIPED THAT HAVE STAYED PUBLIC FOR AN EXTENDED AMOUNT OF TIME, DO NOT EXPECT OPENAI TO IPO NEXT YEAR. THIS IS PROBABLY THE BEST PATH FOR THEM AS FAR AS EMPLOYEE RETENTION. CAROLINE: WELL SAID. THANK YOU ON THE LATEST WHEN IT COMES TO SOFTBANK AND OPENAI.
COMING UP, MORE IN THE VENTURE SPACE. THE COMPANY'S FOUNDING PARTNER JOINS US ON THEIR SPACE INVESTMENTS. THE CEO OF PONY AI'S JOINING BLOOMBERG TECHNOLOGY TO DISCUSS THE SELF DRIVING TECHNOLOGY COMPANIES IPO.
THIS IS BLOOMBERG. COMPANIES LIKE SPACEX AND BLUE ORIGIN ARE HELPING ARCHER IN A NEW WAVE OF MAINSTREAM SPACE EXPLORATION. THEY ARE NOT THE ONLY FIRM SEARCHING FOR ANSWERS IN THIS GUY. THAT IS WHY 776 HAS ALREADY MADE INVESTMENTS IN OTHER SPACE COMPANIES. LET'S TALK THROUGH THEM WITH
KATELIN HOLLOWAY, COFOUNDER OF 776. WE ARE NOT TALKING ABOUT REUSABLE ROCKETS, WE ARE TALKING ABOUT MINING RESOURCES IN SPACE. HOW YOU GET TO VISUALIZE THEY CAN BUILD A TOTALLY NEW ECOSYSTEM? KATELIN: THAT IS SUCH A GOOD QUESTION. MY BACKGROUND IN BUILDING HIGH-GROWTH COMPANIES FOR THE LAST 15 OR 20 YEARS HAS HELPED ME TO BETTER UNDERSTAND DESPITE NOT BEING A ROCKET SCIENTIST MYSELF WHAT IT TAKES TO BUILD INTO THE FUTURE AND LOOK TO THE STARS AND SEE A FUTURE FOR HUMANITY THAT MOST OF US CANNOT. UNDERSTANDING WHAT IT TAKES TO BE A GREAT FOUNDER, WHETHER YOU ARE BUILDING A CHOCOLATE BAR OR A REUSABLE ROCKET. THERE ARE PRETTY STANDARD THINGS THAT MAKE FOUNDER FANTASTIC. CAROLINE: WHAT MAKES THE BUSINESS
OPPORTUNITY OR THE VALUATION FANTASTIC? YOU ARE TAKING SUCH BIGGER SCALE RISK IN A WAY OVER WHETHER OR NOT ONE CAN MINE IN SPACE RATHER THAN BUILD A CHOCOLATE BAR HERE ON EARTH. KATELIN: RIGHT. THAT IS SOMETHING ABOUT THE ECONOMY AND THE TIMES WE ARE LIVING IN TODAY. EVEN FIVE YEARS AGO I THOUGHT THIS WAS FAR TOO INSPECTED OF FOR EARLY-STAGE FIRMS TO BE INVESTING IN THESE COMPANIES AT THE EARLIEST STAGES. WITH SPACEX AND BLUE ORIGIN WHO HAVE BEEN CHARTING THE PATH FROM THE PRIVATE SECTOR SO PUBLICLY, IT HAS ALLOWED US TO BETTER UNDERSTAND WHERE THE TECHNOLOGY IS TODAY AND I THINK FOR SO LONG THE GOVERNMENT BETWEEN NASA AND OTHER SCIENTISTS WHO HAVE BEEN BUILDING BEHIND THAT CLOAK, BEHIND THE CURTAIN, ALL OF THAT TECHNOLOGY IS FINALLY COMING TO THE FOREFRONT.
THEY MIGHT SEE RETURNS COMEBACK BACK WITHIN THE NEXT 10 YEARS . CAROLINE: MANY WAYS SPACEX HAS BEEN SUCKING UP ALL OF THE OXYGEN. WITH THE TRUMP ADMINISTRATION THERE MIGHT BE HELP FROM A REGULATORY PERSPECTIVE.
I THINK THE BEAUTIFUL THING -- KATELIN: THE BEAUTIFUL THING ABOUT BEING A STARTUP IS YOU ARE MUCH MORE AGILE AND THESE FOUNDERS ARE NOT SCARED OF TAKING BIG SWINGS. THAT IS THE BEAUTY OF BEING AN EARLY STAGE FOUNDER. IT IS THE LUXURY SPACEX DOES NOT HAVE ANY MORE. WHILE THEY HAVE PAVED THE WAY FOR ALL OF THE OBVIOUS REASONS, IT IS THE YOUNGEST COMPANIES THEY ARE BUILDING NOW THAT WILL TAKE ADVANTAGE OF THAT TECHNOLOGY AND BUILD THINGS -- WHEN I LOOK AT THE NIGHT SKY WITH MY LITTLE BOYS, IT WILL LOOK MUCH DIFFERENT FOR THEM. WHETHER THAT IS ASTRO FORGE OR
STOKE, THEY WILL BE THE REASON WHY. CAROLINE: IS THERE IS MUCH COMMITTED CAPITAL TO OTHER AREAS? I AM THINKING ABOUT YOU DEPLOY MONEY ACROSS AI, PLUS -- ACROSS CLIMATE TECH? YOU ARE LOOKING EVALUATION OF AI COMPANY, HOW COMPETITIVE IS IT? KATELIN: IT IS INTERESTING. OBVIOUSLY VC LOVES A GOOD FRIEND AND A BIG HYPE CYCLE. WHILE MANY ARE LOOKING FOR OBVIOUS REASONS, THEY ALSO LOOKING TO DEEP TECH IN A WAY THEY HAVE NOT BEFORE. YOU ARE SEEING YOUNG GENERALIST FUNDS COME IN AND SIT SIDE-BY-SIDE ON TABLES WITH THE EXPECTATION OF SOME OF THESE LARGER MULTISTATE FIRMS.
CAROLINE: WHAT ARE YOU SEEING IN TERMS OF FUTURE FUNDRAISING OPPORTUNITIES AS TO WHETHER THE COMPANIES YOU GIVE AN INVESTMENT C2 ARE ABLE TO RAISE FURTHER ROUNDS? YOU'RE MANAGING TO SEE THE INCREASE IN THE VALUE OF THE FUN YOU'VE HELPED BUILD? KATELIN: I THINK THIS IS WHERE THE POWER OF SELECTION COMES INTO PLAY. MY PARTNER HAS QUITE THE TRACK RECORD HIMSELF. UNDERSTANDING WHERE THAT PEOPLE COMPONENT MEETS THE PRODUCT. FOR US EARLY STAGE INVESTING THERE IS POWER AT PLAY. THE EXPECTATION IS WE WILL SEE
THESE COMPANIES MOVE ON. IF WE ARE INVESTING IN THE BEST FOUNDERS WE HAVE NO DOUBT THEY WILL PICK UP THOSE LATER ROUNDS AND TAKE IT ALL THE WAY. CAROLINE: KATELIN HOLLOWAY, THANK YOU FOR COMING ON. KEEP COMING BACK AS THOSE PORTFOLIO COMPANIES RAISE MORE ROUNDS. BLACK FRIDAY IS COMING UP. DEALS CAN ALSO BE FOUND ON CAROLINE: BLACK FRIDAY. IT IS NOT JUST FOR CLOTHING OR ELECTRONICS DEALS. DREAMING SERVICES ARE ON SALE
TOO AND THAT CAN HELP CUSTOMERS ESCAPE RECENT INCREASES IN SUBSCRIPTION PRICES. HANNAH MILLER IS HERE WITH MORE. YOU DOCUMENT ALL OF THE DEALS AVAILABLE ACROSS THE MULTITUDE OF STREAMERS WE ALL HAVE. HANNAH: MOST OF THESE ARE FOR AD SUPPORTED VERSIONS OF THE STREAMING SERVICES WITH AN EXCEPTION HERE OR THERE.
IF YOU WANT THESE DEALS YOU'LL HAVE TO WATCH ADS. CAROLINE: ARE WE FINDING THE STREAMING COMPANIES ARE WANTING TO PRODUCE -- ARE WANTING TO PROMOTE THAT ELEMENT? HANNAH: WE HAVE SEEN A LOT OF LEGACY MEDIA COMPANIES ZERO IN ON STREAMING AND PULL AWAY FROM TRADITIONAL CABLE. THEY WANT MORE SUBSCRIBERS AND THIS IS A WAY TO GET PEOPLE IN. CAROLINE: LOOKING AT SOME OF THE STORY YOU HAVE. HULU JUST $.99 PER MONTH. THE MAX $2.99. HAVE WE SEEN THIS REPEAT?
HANNAH: HULU IS A PIONEER IN THESE BLACK FRIDAY DEALS AND WE HAVE SEEN OTHER STREAMERS JUMP ON THE BANDWAGON. KEEP IN MIND WITH THESE DEALS A LOT OF THEM ARE SHORT-TERM FOR A YEAR AT MOST. THOUGH SAVINGS ONLY GO SO FAR. CAROLINE: HOW EASY IS IT TO EXIT IT? HOW MUCH ARE THEY UNDER DURESS TO MAKE SURE EVERYTHING IS TRANSPARENT? HANNAH: IF YOU TRY TO CANCEL THEY WILL OFTEN OFFER A SWEETENER TO KEEP YOU BACK ON BOARD. IT IS NOT THE WORST PROBLEM.
CAROLINE: IT IS A GREAT READ IF YOU WANT TO GET IN ON BLACK FRIDAY SAVINGS DEALS. LET'S GO FROM THE SMALLSCREEN TO THE BIG SCREEN. AFTER DELAYS FROM LAST YEAR'S HOLLYWOOD STRIKES MOVIE THEATER HYPE IS SURGING ON THE BACK OF A FEW RECENT BLOCKBUSTERS. TAKE WICKET OR GLADIATOR II WHICH BROUGHT IN A COMBINED $168 MILLION IN SALES. THE DOMESTIC BOX OFFICE COULD
REACH UP TO $370 MILLION OVER THE FIVE DAY HOLIDAY PERIOD COMING UP. THAT IS BASED ON THE BLOOMBERG INTELLIGENCE AND OF INDUSTRY FORECAST. THE PERSON CRACKING THE NUMBERS IS KEVIN NEAR FROM BLOOMBERG INTELLIGENCE. IS IT A CONSUMER SENTIMENT THING OR IS IT THESE PARTICULAR MOVIES DRAWING EVERYONE IN? KEVIN: I THINK IT IS BOTH. IT IS A PERFECT STORM. THESE THREE FILMS ARE VERY WELL-RECEIVED BY CRITICS AND AUDIENCES AFTER A FEW DIFFERENT MISFIRES.
CINEMAS ARE HAPPY, THE STUDIOS ARE HAPPY, SOME OF THE MORE BULLISH ESTIMATES ARE PUT IN THE TOTAL NORTH OF 300 OR $350 MILLION. CAROLINE: THESE ARE NOT CHEAP MOVIES TO HAVE MADE SO THESE NEEDED TO BE BLOCKBUSTERS. KEVIN: BY NO STRETCH WHERE THEY CHEAP FILMS. THAT YOU HAVE TO FACTOR IN THE MARKETING CAMPAIGNS. WE SAW INCREDIBLE MARKET SPEND
FOR WICKET. I'M SURE YOU SAW ADS EVERYWHERE. CAROLINE: DOLLS EVERYWHERE. KEVIN: AND THAT KICKS OFF THE CONTENT VALUE FLYWHEEL WITH THE THEATER. THAT THEATRICAL RUNWAY CAN REALLY ACCELERATE THAT FLYWHEEL. CAROLINE:
MY FAMILY A LITTLE BIT TOO YOUNG FOR THE WICKED SIDE OF THINGS, NOT TO MENTION GLADIATOR II, BUT WE ARE INTERESTED IN MOANA. A BIG OF A DEAL WILL THAT BE FOR DISNEY AND DISNEY STREAMING? KEVIN: MOANA 2 AT A GREAT PREVIEW LAST NIGHT. IT DOES COMPLEMENT THE WICKED AUDIENCE. YOU'RE GETTING THE FEMALE DEMOGRAPHIC BUT DIFFERENT AGES. LOOKING GREAT FOR CINEMAS. DISNEY, THE STUDIO HAS HAD SUCH
A WONDERFUL BOUNCE BACK THIS YEAR AFTER A FEW MISFIRES IN 2023. THEY'RE ONLY PUTTING OUT A HANDFUL OF BLOCKBUSTER FILMS BUT INSIDE OUT TO, DEADPOOL AND WOLVERINE, RAY TURNAROUND. HOPEFULLY THAT MOMENTUM CAN CONTINUE NEXT YEAR. CAROLINE: A LOT OF THESE ARE SEQUELS. WICKED IS DIFFERENT BUT TRIED AND TESTED ON BROADWAY. KEVIN: STUDIOS ARE LEADING ONTO ESTABLISHED IP, WHETHER IT IS A BRAND OR A SEQUEL, YOU ARE TO SEE A LOT OF THAT. THEY'RE TRYING TO BALANCE IT
OUT WITH ORIGINALS. AMAZON JUST HAD ORIGINAL FILM CALLED RED ONE. YOU ARE SEEING A LITTLE BIT OF BACK-AND-FORTH BUT I THINK DISNEY ESPECIALLY HAS SAID THEY WILL LEAD INTO SOME OF THEIR ESTABLISHED FRANCHISES. CAROLINE: INTERESTING RED ONE WENT TO THEATERS AS WELL HAVING NOT BEEN PLANTED -- NOT HAVING BEEN PLANNED TO. AND WE KEEP AN EYE ON WHAT IS HAPPENING IS WHERE HURTLED TOWARDS A LONG WEEKEND. WE ARE CURRENTLY SEEING NASDAQ LOWER BY THE LIKES OF NVIDIA AND KEY TECH NAMES. NOT SO FOR BITCOIN.
BACK AT 95,000. DELL AND CROWDSTRIKE EARNINGS COMING OUT AND PUTTING PAID TO ANY OPTIMISM AROUND APC RECOVERY FOR DELL AND HP. WE HAVE SO MUCH MORE TO DIGEST BUT THAT DOES IT FOR THIS ADDITIONAL BLOOMBERG TECHNOLOGY. CHECK OUT OUR PODCASTS ON THE TERMINAL AS WELL AS ONLINE ON APPLE, SPOTIFY, AND I HEART. OF A WONDERFUL THANKSGIVING DAY.
TUNE INTO BLOOMBERG ON FRIDAY.
2024-11-28 22:22
