>> FROM THE HEART OF WHERE INNOVATION, POWER, AND MONEY COLLIDE, IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY." WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM NEW YORK AND SAN FRANCISCO, THIS IS "BLOOMBERG TECHNOLOGY." BROADCOM IS FALLING HARD AFTER A DISAPPOINTING FORECAST, DESPITE ROBUST DEMAND FOR AI PRODUCTS. ED:
TECH STOCKS FLIRTING WITH THEIR WORST WEEK SINCE 2022 APPLE'S LAUNCH EVENT. CAROLINE: IN THE WHITE HOUSE IS TARGETING CHINA AGAIN, WE DISCUSSED, BUT FIRST WE HAVE SOME MACRO BREAKING NEWS FROM THE FEDERAL RESERVE. AND THE MAN TO BRING US THE DETAILS IS MICHAEL MCKEE. COMING FROM FED TO SPEAK. MIKE: THIS IS WHAT EVERYBODY HAS BEEN WAITING FOR ALL DAY.
THE JOBS NUMBER COMES IN AT ONE JUNTA 42 THOUSAND AND UNEMPLOYMENT FALLS BACK TO 4.2%. WHAT WILL THE FED DO? WE GET A HAND FROM THE FEDERAL RESERVE GOVERNOR, OFTEN SEEN AS THE LEADING GUIDE TO FIT ACTIVITY. HE SAYS TODAY'S DATA SHOWS IT IS TIME TO CUT RATES. DETERMINING THE PACE OF RATE CUTS AND ULTIMATELY THE TOTAL REDUCTION IN THE POLICY RADAR DECISIONS THAT LIE IN THE FUTURE AS OF TODAY I BELIEVE IT IS IMPORTANT TO START THE RATE CUTTING PROCESS AT OUR NEXT MEETING. IF SUBSEQUENT DATA SHOW A SIGNIFICANT DETERIORATION IN THE LABOR MARKET THE FOMC CAN ACT QUICKLY AND FORCEFULLY TO ADJUST MONETARY POLICY. NOW, WHILE WALLER SAYS WE ARE
NOT IN RECESSION AND IT DOES NOT NECESSARILY LOOK LIKE WE ARE GOING INTO RECESSION, THE ECONOMY LOOKS STRONG, HE SAYS THE RISKS ARE TILTED TOWARD THE DOWNSIDE ON GROWTH, WHILE INFLATION HAS GOTTEN BETTER. HE DOES NOT SAY WHETHER IT WILL BE 50 OR 25, BUT SAYS THAT IS A DECISION COMING UP. ED: ONCE WE GET THROUGH THE YIELD, SHOW ME THE NASDAQ OR S&P 500 AND SHOW OUR AUDIENCE AT THE MARKETS CHANGE DIRECTION ON THOSE HEADLINES. I WANT TO READ ONE SPECIFIC IT BACK TO YOU, WHICH IS THE CURRENT BATCH OF DATA NO LONGER REQUIRES PATIENCE, IT REQUIRES ACTION. THERE IS NO SIZE AND SCOPE TO ONE ACTION MEANS. WE DON'T HAVE A BASIS POINTS NUMBER, DO WE? MIKE: WE DON'T, AND THAT IS ODD. CHRIS WALLACE GOES ON TO SAY
THAT HE WAS AN ADVOCATE FOR FRONTLOADING RATE INCREASES WHEN INFLATION WENT UP. AND IF THE DATA SUPPORT IT, HE WOULD BE AN ADVOCATE OF FRONTLOADING RATE CUTS. WHAT DATA IS HE TALKING ABOUT? WE DON'T GET MUCH MORE BEFORE THE FED MEETING, SO I'M NOT SURE WHY HE WAS NOT MORE SPECIFIC OTHER THAN PERHAPS HE DOES NOT WANT THE MARKETS TO GET AHEAD OF THEMSELVES IN PRICING. CAROLINE: THAT IS WHAT MARKETS DO. MICHAEL MCKEE, JUST BRILLIANT TO HAVE YOU ON THIS MARKET-MOVING STORY.
LET'S GET ANALYSIS FROM THE MARKET. SHANA SISSEL IS WITH US. CEO OF BANRION CAPITAL MANAGEMENT, WHICH HELPS INDEPENDENT ADVISORS WITH ALTERNATIVE INVESTMENT OPTIONS. YOU CURRENTLY HAVE 4 BILLION DOLLARS UNDER ADVISEMENT.
I'M INTERESTED IN HOW MUCH MACRO THE FED IS GUIDING INVESTMENT CHOICES RIGHT NOW OR HOW MUCH YOU CAN THINK ABOUT AI AND PRODUCTIVITY AND TECHNOLOGY STILL WINNING OUT? SHANA: I THINK YOU'VE GOT TO THINK OF THOSE THINGS IN TWO SEPARATE WAYS, RIGHT? THERE IS THE CURRENT ECONOMIC ENVIRONMENT, AND -- IN WHICH THE FED HAS BEEN TIGHTENING. THEY HAVE BEEN RAISING RATES FOR A WHILE. THEY HAVE TRIED TO GET INFLATION UNDER CONTROL. THE RAMIFICATIONS OF THAT IS THAT IT SOFTENS LABOR MARKETS, IT SLOWS GROWTH. THE GOAL IS FOR IT TO SLOW
GROWTH, NOT MAKE GROSS GO NEGATIVE. AND WE ARE SEEING THAT PLAY OUT, BECAUSE IT IS MORE EXPENSIVE TO BORROW MONEY AND THE CAPITAL MARKETS ARE REACTING ACCORDINGLY. YOU CAN THINK OF THAT AS THE CURRENT ENVIRONMENT AND STILL BELIEVE THAT TECHNOLOGY TRENDS LIKE AI WIN LONGER-TERM, AND IT DOES NOT CHANGE THE FACT THAT COMPANIES, WHEN THEY LOOK AT WHERE THEY ARE GOING TO DEPLOY CAPITAL AND WHERE THE OPPORTUNITIES LIE, ARE GOING TO DO IT IN THE PLACES THEY THINK THEY NEED TO DEVELOP IN ORDER TO COMPETE GOING FORWARD. AND SO, AS THEY MAKE THOSE CAPITAL DEPLOYMENT DECISIONS THEY ARE LOOKING AT THINGS LIKE AI, WHICH IS THE NUMBER ONE THING THEY NEED TO BE CONSIDERING TO CONTINUE TO STAY COMPETITIVE. A GREAT EXAMPLE IS APPLE, RIGHT? EVERYBODY WAS DOWN ON THE STOCK PRIOR TO THEIR ANNOUNCEMENTS OF HOW THEY WERE GOING TO BE INCORPORATING AI INTO THEIR IPHONE PLATFORM AND INTO THEIR OTHER DEVICES, RIGHT? BEFORE THAT EVERYBODY WAS LIKE, THEY ARE BEHIND THE EIGHT BALL. AND THE STOCK HURT. ED: LET ME JUMP IN HERE. AND I'M SORRY TO CUT YOU OFF.
I WANT TO CONTINUE WITH THE REACTION TO THOSE FED HEADLINES. ONE OF THOSE THINGS YOU TRACK IS BITCOIN. WHEN WE GOT THE NUMBERS BITCOIN JUMPED AND WAS IN POSITIVE TERRITORY FOR MUCH OF THE SESSION. GOING INTO THOSE HEADLINES AT THE TOP OF THE 11:00 EASTERN HOUR IT WAS MARKEDLY LOWER. ABOUT 2.5%.
IT CAME OFF OF THAT LITTLE BIT. USE THAT CASE STUDY OF ONE SESSION TO EXPLAIN WHY YOU TRACK BITCOIN SO CLOSELY FOR YOUR CLIENTS. SHANA: SO, AGAIN, WE THINK BITCOIN IS, OR EVEN EASTER, CRYPTO IN GENERAL, ARE TAKING ADVANTAGE OF A TECHNOLOGY IN THE FUTURE IN BLOCKCHAIN. BLOCKCHAIN IS A QUOTE OF -- IS A PROTOCOL, AND WE HAVE SEEN THE REVOLUTIONS OF PROTOCOLS THROUGHOUT THE HISTORY OF THE INTERNET, YOU KNOW? EVERYTHING FROM VOICEOVER INTERNET PROTOCOL TO HTTPS A PROTOCOL. THESE ARE ALL PROTOCOLS. WATCHING IS A PROTOCOL. WATCHING WORKS ON THAT PROTOCOL, AND -- BLOCKCHAIN IS A PROTOCOL AND ONE WE THINK WILL BE MORE LARGELY ADOPTED. WE SAW IN THE SHORT-TERM
REACTION TO INFORMATION HAD MORE TO DO WITH A RISK ON-RISK OFF TRADING, NOT NECESSARILY THE ADOPTION OF THE PROTOCOL. YOU CAN BELIEVE TWO THINGS AT ONCE. THIS IS THE DIFFERENCE BETWEEN A TRAITOR AND A LONG-TERM INVESTOR, RIGHT? YOU CAN BELIEVE IN THE SHORT TERM YOU ARE GOING TO HAVE THE MARKET MOVEMENTS THAT YOU CAN PROFIT FROM, AND YOU CAN ALSO BELIEVE THAT, I DON'T CARE ABOUT WHAT HAPPENS ON ONE INDIVIDUAL DAY, BUT THE LONGER TERM TREND WINS OUT IN THE LONG TERM. CAROLINE: IS THAT WHAT IS HAPPENING WHEN WE LOOK AT THE LIKES OF BROADCOM TODAY OR NVIDIA LAST WEEK? THAT IT IS THE TRADING THAT SENDS THEM SO MUCH LOWER ON PRETTY FUNDAMENTALLY DECENT NUMBERS IN THE LONG TERM, BUT THEY DISAPPOINT BECAUSE EXPECTATIONS HAVE RUN SO FAR SO FAST? SHANA: THAT IS EXACTLY RIGHT. THERE IS TWO DIFFERENT TYPES OF ANALYSIS IN FINANCE. THERE IS TECHNICAL AND FUNDAMENTAL.
THE FUNDAMENTALS REMAIN STRONG, BUT THE TECHNICALS BROKE DOWN. THE TECHNICALS DRIVE A LOT OF THE ALGORITHMS THAT MOVE THE MARKETS THESE DAYS, AND SO THAT IS WHY YOU CAN SEE THESE SHORT-TERM PRICE DISLOCATIONS THAT OCCUR EVEN THOUGH FUNDAMENTAL INFORMATION IN THE ACTUAL COMPANY ITSELF IS IN GOOD SHAPE. ED: YOU STATED A LINE I HAVE BEEN USING ALL WEEK, WHICH EFFECTIVELY IS, ONE SESSION A MARKET DOES NOT MAKE.
BUT I WANT TO STICK WITH WHAT IS HAPPENING RIGHT NOW. WE HAD THAT STATEMENT FROM WALLER. TIE IT ALL TOGETHER. THE POSTMORTEM OF NVIDIA, WHAT THE EXPECTATION OF WHAT THE FED WILL WANT TO DO THIS MONTH IS, AND WHERE YOU GO FROM HERE. SHANA: THE POSTMORTEM OF NVIDIA IS THAT NVIDIA IS A GREAT COMPANY DOING GREAT THINGS, AND IT HAS REALLY ATTRACTIVE GROWTH.
JUST NOT THE ATTRACTIVE GROWTH THEY HAD BEFORE. SO, WHEN YOU WERE EXPERIENCING 300%, 400% INCREASES IN REVENUE AND YOU DECREASE TO 150%, THAT IS A DECREASE. BUT IT IS STILL A 150% INCREASE IN YOUR REVENUE. OVERALL AS A LONG-TERM HOLDER OF NVIDIA, PERSONALLY, I BELIEVE THE STOCK WINS IN THE LONG TERM. I FOLLOWED THE STOCK FOREVER. IN THE SHORT-TERM WHAT YOU ARE SEEING IS THAT DISAPPOINTMENT, AND THE STOCK COMING BACK TO REFLECT MORE CLOSELY ITS FUNDAMENTALS WHEN YOU START TO LOOK AT PRICE TO EARNINGS AND THINGS OF THAT NATURE.
POSTMORTEM I THINK LONG-TERM NVIDIA GOOD, SHORT TERM WE WILL PROBABLY HAVE VOLATILITY. IN TERMS OF THE FED AND WHAT HAPPENS NEXT I THINK TODAY'S DATA AND THE COMMENTS CAME FROM WALLER SUGGEST THAT THE FED IS STILL IN-LINE TO MAKE A RATE CUT THIS MONTH, AND IT WILL BE THE FIRST OF MANY. AND THE QUESTION REALLY BECOMES HOW BIG WILL THAT RATE CUT BE? THERE IS NOTHING THAT CAME OUT IN TODAY'S DATA THAT SUGGEST IT SHOULD BE ANYTHING MORE THAN 25 BASIS POINTS, IN MY OPINION. ED: SHANA SISSEL, CEO OF BANRION -- SHANA: DID I ANSWER YOUR QUESTION? ED: YOU TOOK WHAT I ASK AND REALLY RAN WITH IT. THANK YOU VERY MUCH. COMING UP, WE GO BACK TO EARNINGS. CONVERSATIONS WITH THE C-SUITE, INCLUDING DOCUSIGN CEO ALLAN THYGESEN AND UIPATH CEO ASHIM GUPTA. BUCKLE UP, CAROLINE.
FRIDAY IT IS. THIS IS "BLOOMBERG TECHNOLOGY." ED: DOCUSIGN SHARES UP IN TODAY'S TRADING AFTER THE COMPANY REPORTED SECOND-QUARTER RESULTS, BOASTING REVENUE OF $736 MILLION. IT IS MARGINS WHERE A LOT OF THE STREET'S FOCUS IS.
LET'S BRING IN CEO ALLAN THYGESEN. I JUST WANT THE DOCUSIGN STORY. I THINK HISTORICALLY YOU HAVE EATEN THE MARKET'S EXPECTATIONS, SO EVERYONE WAS EXCITED. THEY ARE A LITTLE CONCERNED ON THAT, THE STORY BEHIND GROWTH. ALLAN:
WHEN I JOINED TWO YEARS AGO THERE WERE THREE QUESTIONS. COULD WE STABILIZE THE BUSINESS, COULD WE BECOME MORE EFFICIENT, AND COULD WE DEVELOP OUR NEXT CHAPTER? THIS CORNERSTONE IS A NICE MILESTONE. WE HAVE MADE THE BUSINESS MUCH MORE EFFICIENT. WE ARE NOW POISED FOR GROWTH. WE HAVE LAUNCHED OUR NEW PRODUCT LINE. WHICH IS BROADER THAN THE E-SIGNATURE EVERYONE IS FAMILIAR WITH.
WE SAW SOME VERY POSITIVE RESULTS. IT IS STILL EARLY BUT WE ARE VERY ENCOURAGED. CAROLINE: DIG INTO THOSE POSITIVE RESULTS. AI ROTTING OUT FROM CONTRACTS, HOW IS IT WORKING FOR COMPANIES THAT USE IT? ALLAN: HE LOST IT TO COMMERCIAL CUSTOMERS, AND WE HAVE HAD A NUMBER OF FOLKS THAT WERE DEPLOYED AND THE RESULTS ARE GOOD. WHAT THEY ARE SAYING IS THEY LOVE THE FACT THAT WE CAN INGEST ALL OF THEIR AGREEMENTS AND GIVE THEM IMMEDIATE INSIGHTS INTO EVERY CONTRACT THEY HAVE THIS IS VALUABLE FOR EVERY ROLE IN THE CON -- THE COMPANY. THE NEW ARE A CEO OR PURCHASING AGENT OR HR RECRUITER YOU WANT TO KNOW, WHAT ARE THE ESSENTIAL TERMS AND HOW ARE THINGS GOING? THAT IS WHAT WE PROVIDE AND WE CAN DO THAT FAIRLY INSTANTANEOUSLY. ED:
WHEN YOU HAVE AN AI-ENABLED PRODUCT HE'D USUALLY REQUIRED AN INVESTMENT ON THE TALENT SITE OR COMPUTER SIDE. WHAT CAN YOU TELL ME AND YOU ARE INVESTORS AND THE AUDIENCE TO CONVINCE US THAT IS PAYING OFF FULL? ALLAN: IF YOU LOOK AT OUR PAST PERFORMANCE WE HAVE BEEN DOING AI FOR A LONG TIME. WE HAVE HAD A I EMBEDDED IN OUR PRODUCTS SINCE BEFORE LLMS CAME OUT. AND OBVIOUSLY WITH THE ADVENT OF THESE NEW MODELS WE WERE ABLE TO TAKE A SIGNIFICANTLY FORWARD AND THE FUTURE I JUST DESCRIBED IS AI-ENABLED SO, WE TAKE YOUR CONTRACT DATA, RUN IT THROUGH SOME OF THESE MODELS, SCORE THEM, AND GIVE YOU BACK THE CENTRAL DATA ABOUT YOUR AGREEMENTS. YOU CAN DO THAT IN A VERY INSTANTANEOUS WAY. FROM AN INVESTOR PERSPECTIVE WE HAVE RAMPED UP OUR INVESTMENTS IN PRODUCT AND TECHNOLOGY AND WE ARE MOVING TO THE PUBLIC CLOUD. WE HAVE A PARTNERSHIP WITH
MICROSOFT. WE ARE HOLDING THE LINE ON EXPENSES. AND OF COURSE THE COSTS OF AI CONTINUE TO DROP. CAROLINE: WE ARE LOOKING AT THE MOMENT AT AN INTRADAY. I LOOK BACK OVER THE FIVE
YEARS, AT ONE POINT YOUR SHARE PRICE IT CLIPPED -- ECLIPSED 300. I'M WONDERING AS TO WHETHER YOU THINK THIS AI IN FOR YOU IS EVERCORE -- EUPHORIA IS GOING TO INFUSE ITSELF INTO THE MARKET CAPITALIZATION AS THE PANDEMIC DID ONCE BEFORE? ALLAN: I THINK THOSE WERE DAYS WHERE DOCUSIGN WAS GROWING 60% OF YEAR. I DON'T KNOW IF WE HAVE A PATH TO THAT YET. I CERTAINLY LOVE THAT BUT I AM NOT PROJECTING OUT. FOR NOW WE ARE SETTING OURSELVES A MILESTONE. I THINK WE HAVE A PATH TO THAT, AND THE EARLY SIGNS HERE ARE ENCOURAGING.
WE ARE A MUCH MORE PROFITABLE COMPANY NOW AND WILL OPERATING AT A BIGGER SCALE. I'M NOT GOING TO PREDICT WHETHER MARKET IS GOING TO VALUE US BUT WE ARE PLEASED WITH THE EARLY PROGRESS HERE. ED: VERY QUICKLY, THE COST OF AI IS DROPPING.
I DON'T KNOW THAT I HAVE HEARD MANY PEOPLE SAY THAT TO ME. WHAT DO YOU MEAN? ALLAN: IF YOU LOOK AT THE EFFICIENCY OF THESE MODELS AND THE COST PER ITEM PROCESSED, WHETHER IT IS AN IMAGE, OR IN OUR CASE AN AGREEMENT, THE COST HAS DROPPED BY ORDERS OF MAGNITUDE. PEOPLE ARE TAKING ON MORE AMBITIOUS TASKS. THE MODELS ARE GETTING LARGER, SO THE COMPUTE COST FOR THE LARGE VENDORS, FOR EXAMPLE, THE CAPITAL INVESTMENT THEY ARE MAKING IS GOING UP. I THINK BECAUSE OF THE EXPANSIVENESS OF THE OPPORTUNITY THEY SAY. BUT AS A CUSTOMER ON A PER-ITEM PROCESSED PERSPECTIVE COSTS ARE DROPPING VERY RAPIDLY. CAROLINE: FASCINATING TAKE.
THANK YOU VERY MUCH. ALLAN THYGESEN. LET'S GO ELSEWHERE. SHARES OF AUTOMATION IN UIPATH ARE DOWN IN TODAY'S TRADING AFTER 10% REVENUE GROWTH RESULTS AND A SMALL UPWARD REVISION IN ITS RECURRING REVENUE FORECAST. THAT IS AMID A CEO TRANSITION. UIPATH CFO AND COO ASHIM GUPTA
FOR MORE. YOU ARE TAKING ON MORE GOALS AND RESPONSIBILITIES. WE ARE SEEING AN INVESTOR BASE THAT WANTS OF CERTAINTY IN THIS PERIOD OF CHANGE.
YOU ARE SHOWING EXECUTION. CAN YOU GIVE THEM THAT IF THE MOMENT? ASHIM: YEAH, AND I THINK THIS QUARTER WAS A GOOD TESTAMENT TO THAT. WE BEAT OUR METRICS ACROSS THE BOARD FROM WHAT WE GOT INTO LAST QUARTER. WE RAISED OUR OPERATING MARGIN AND FREE CASH FLOW BY 25 MILLION DOLLARS, WHICH PROJECTS OUR CONFIDENCE IN OUR ABILITY TO EXECUTE EFFICIENTLY AND AT THE SAME TIME WITH MINIMUM DISTRACTION ON THE TOPLINE RESULTS WE ARE GOING TO CONTINUE TO DRIVE. WE HAVE ALSO EXECUTED WELL AGAINST OUR BUYBACK. WE INCREASED OUR AUTHORIZATION FOR ANOTHER $500 MILLION, RINGING A BILLION DOLLARS IN TOTAL. I THINK THAT PROJECTS THE CONFIDENCE WE HAVE IN THE
COMPANY AND OUR ABILITY TO EXECUTE. THAT IS TRANSLATING WELL IN THE INVESTOR DISCUSSIONS WE HAVE HAD TO DATE. CAROLINE: WHAT ABOUT EXECUTING AGAINST YOUR COMPETITION? ASSUMING YOUR ROLE BEFORE WAS ABOUT CUSTOMER EXCELLENCE. SERVICE NOW, SALESFORCE ARE ROLLING OUT AI AGENTS. I'M INTERESTED IN SEEING YOUR ABILITY TO COMPETE HERE. ASHIM: IT IS A GREAT QUESTION. WE FEEL GOOD ABOUT OUR POSITION AND THE EXECUTION OF OUR FIELD IN COMPUTING. WE CLOSED THE LARGEST TEST
AUTOMATION DEAL IN THE HISTORY OF THE COMPANY IN ONE OF THE WORLD'S LARGEST TECH COMPANIES. WE HAVE EXPLAINED IT -- EXPANDED OUR CLOUD SERVICE INTO OUR OVERALL TOPLINE RESULTS. WHEN YOU LOOK ACROSS OUR CUSTOMER BASE WE HAVE INCREASED OUR CUSTOMERS GREATER THAN $1 MILLION BY 15% YEAR-OVER-YEAR.
IN THAT COHORT OF CUSTOMERS, CUSTOMERS GREATER THAN $100,000 OR $1 MILLION, IS EXPANDING. THAT SHOWS WE ARE WINNING IN THE MARKET. THERE IS INCREASED COMPETITION IN PERSONAL PRODUCTIVITY. SMALLER R.O.I., MUNDANE TASK-TYPE OF AUTOMATIONS. WHERE WE ARE WINNING IS IN LARGE-SCALE ENTERPRISE AUTOMATIONS, AND WHERE AI AND AUTOMATION COME TOGETHER. THAT IS WHAT CUSTOMERS WANT, AND WE ARE WINNING IN THOSE TYPES OF USE CASES. AS EVIDENCED BY THE DEMO WE
PROVIDED IN OUR EARNINGS CALL THAT SHOWS THE IMPACT WE COULD HAVE WITH HEALTH CUSTOMERS ACROSS THE INDUSTRY FOR A SIMPLE USE CASE THAT CAN SAVE THEM HUNDREDS OF BILLIONS OF DOLLARS. ED: CONGRATULATIONS ON BEING GIVEN A SECOND JOB ON TOP OF THE ONE YOU ALREADY HAVE, CFO AND COO NOW. SOMETHING WE PROBABLY LOOKED AT EARLIER IN THE YEAR, THIS BIGGER PICTURE OF LICENSE TO SUBSCRIPTION. THERE ARE LOTS OF PEOPLE THAT WATCH THIS PROGRAM WHERE THAT IS SOMETHING THEY WILL CONFRONT EACH DAY, BECAUSE THEY EITHER ADMINISTER SOFTWARE AGREEMENTS OR WHATEVER. CAN YOU EXTRAPOLATE OUT FROM YOUR EARNINGS OF WHAT THAT TREND LOOKS LIKE FOR YOU GUYS GOING FORWARD? ASHIM: YEAH, WE REALLY LOOK AT OUR ANNUAL RECURRING REVENUE AS AKIN TO OUR SUBSCRIPTION MODEL.
AND THAT IS GROWING 19%. WE REALLY LOOK AT THAT AS A VERY GOOD INDICATOR OF WHERE WE ARE AS A COMPANY AND HOW CUSTOMERS LOOK AT US AS A LONG-TERM PART OF THEIR ARCHITECTURE. THE SECOND PIECE IS OUR NET DOLLAR EXPANSION RATE. THAT IS STILL AT 150% OF THE SCALE WE ARE AT. WHEN YOU LOOK AT CUSTOMERS
BUYING IN NOT JUST FOR ONE TIME-TYPE PROJECT BUT REALLY SUBSCRIBING TO US, IT IS BECAUSE WE PROVIDE CONTINUOUS AND LONG-TERM VALUE IN THEIR ENTERPRISE PROCESSES. AS YOU EXTRAPOLATE THAT FORD AND YOU SAY 150% NET DOLLAR EXPANSION RATE, CONTINUING TO LAUNCH NEW PRODUCTS SUCH AS AUTOPILOT, THAT BRINGS NATURAL LANGUAGE PROCESSING FOR AUTOMATION DEVELOPERS AND PUTS THAT IN THEIR HANDS, AND EXPANDING OUR PLATFORM INTO TEST AUTOMATION, AND CONTINUING TO DRIVE MORE COMPLICATED USE CASES, WE FEEL GOOD ABOUT THE TRAJECTORY OF THAT SUBSCRIPTION MODEL FOR US. ED: HOW IS YOUR DAY TODAY GOING TO BE DIFFERENT NOW THAT YOU ARE COO AS WELL? ASHIM: I HAVE A GREAT TEAM IN FINANCE THAT HAS DONE SO MUCH AND BUILT A GREAT FOUNDATION.
REALLY, DANIEL AND I LOOK AT EXECUTION AND DRIVING PRIORITIZATION, AND THEN DIVIDING AND CONQUERING. WHERE HE CAN SPEND TIME CONTINUING TO LEAD US INTO THIS WAVE THAT IS THERE. AGENTIC IS SUCH A POWERFUL WAVE, AND CONTINUING OUR LEADERSHIP IN THAT AREA IS GREAT. FOR ME TO BE ABLE TO HELP
DANIEL AND THE TEAM BY PROVIDING DAY-TO-DAY OWNERSHIP OVER THE ENABLING FUNCTIONS THAT REALLY DRIVE I WOULD ABILITY TO EXECUTE AGAINST OUR BROADER VISION, THAT IS WHERE I'M GOING TO SPEND MORE FIGHT TIME. IT IS AN HONOR TO BE PART OF THE LARGER TEAM. CAROLINE: IT IS A HARD TIME BECAUSE YOU ARE CUTTING PEOPLE. HOW MUCH IS AI ABLE TO OFFSET AND REPLACE SOME OF THAT TALENT? ASHIM: I THINK FIRST IS, YOU ARE RIGHT, IT IS NEVER EASY TO PART WITH EMPLOYEES. AT THE SAME TIME I THINK
CONTINUING TO DRIVE SHAREHOLDER VALUE IS IMPORTANT FOR US, AND EFFICIENCY, AND MAKING SURE WE HAVE STREAMLINED PROCESSES. I THINK AI IS A REALLY IMPORTANT PART OF US. WE USE OUR PLATFORM INTERNALLY. MORE THAN 350 AUTOMATIONS, DOING EVERYTHING FROM INVOICE PROCESSING TO EVEN COMPLEX AREAS LIKE VENDOR ENGAGEMENTS. THAT IS A BIG PART OF OUR PRODUCTIVITY. WITH AUTOPILOT WE ARE ABLE TO LAUNCH THAT INTO OTHER AREAS, SUCH AS OUR SALES PROCESSES.
I THINK THAT EFFICIENCY GIVES US NOT JUST PRODUCTIVITY IN DOLLARS, BUT REALLY OF MIND SHARE. TO SPEND MORE TIME WITH CUSTOMERS CUSTOMER CENTRICITY IS A KEY PART OF DANIEL'S PRIORITY AS WE GO FORWARD. ED: UIPATH COO, ASHIM GUPTA. COMING UP, AMERICANS ARE SHIFTING THEIR STANCE ON A POTENTIAL TIKTOK BAND. WE WILL HAVE ALL OF THE DETAILS
NEXT. AND AS WE HEAD TO THE BREAK, TAKE ANOTHER LOOK AT THE NASDAQ ONE HUNDRED. ACTUALLY TRADING NEAR SESSION LOWS NOW, HEADING TOWARD ITS BIGGEST WEEKLY DECLINE SINCE NOVEMBER 2022. DOWN 2.5% IN THIS SESSION. YOU CAN SEE THE SPIKE OR PAIRING OF THOSE LOSSES. WE WILL TALK MORE. THIS IS "BLOOMBERG TECHNOLOGY."
ED: IT IS TIME NOW FOR TALKING TECH. AMERICANS ARE LESS SUPPORTIVE OF A POSSIBLE TIKTOK BAND AND THEY WERE 18 MONTHS, ACCORDING TO A NEW PEW RESEARCH SURVEY. JUST 32% OF ADULTS SUPPORT A BAN. TIKTOK.
BYTEDANCE IS RAISING AS MUCH AS SIX HUNDRED MILLION DOLLARS FOR HIS CAR INFORMATION AND TRADING PLATFORM, ACCORDING TO SOURCES. THE FUNDRAISING ROUND VALUES THE PLATFORM CLOSE TO $3 BILLION. TELEGRAM CEO DEFENDED THE ENCRYPTED MESSAGING APP IN HIS FIRST PUBLIC COMMENTS SINCE BEING ARRESTED IN PARIS LAST MONTH. HE ACKNOWLEDGED "GOING PAINS" FROM A RAPID EXPANSION, AND PROMISED TO TACKLE CRIMINAL ABUSE. TAKE CAROLINE: A LOOK AT THESE MARKETS AND ANTICIPATE WHAT WE ARE DISCUSSING NEXT. BROADCOM, I MEAN, SLUMPING ON
THE BACK OF ITS NUMBERS. THEY WERE PRETTY STRONG IN AI, BUT THE FORECAST DISAPPOINTED. THE NASDAQ OFF 5.6% OVER THE LAST FIVE TRADING DAYS. CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." I'M CAROLINE HYDE IN NEW YORK. ED: AND I'M ED LUDLOW IN SAN FRANCISCO. CAROLINE:
IT IS A BRUTAL END TO THIS WEEK. IT IS THE MACRO DATA SHOWING ONCE AGAIN A COOLING IN THAT JOBS MARKET. WAGE GROWTH TICKED UP, BUT WE ARE LOOKING FOR REASONS TO SELL THIS FRIDAY. WE ARE DOWN ON THE NASDAQ BY 2.3%. WE ARE IN A RISK-ADVERSE ENVIRONMENT, SO THE BOND MARKET WHICH IS A DID. OFF OF SOME 14 BASIS POINT
COLLAPSE EARLIER IN THE DAY. THIS AS WE START TO BAKE IN, IS THERE A 50 BASIS POINT CUT AS SOON SEPTEMBER? LOOK AT WHAT SOME OF THE INDIVIDUAL MOVERS ARE DOING. I WANT TO SHINE A LIGHT ON WHAT A BRUTAL GEEK IT HAS BEEN FOR CHIPS MORE BROADLY. OFF BY ANOTHER 4%. WE ARE BASICALLY DOWN 9% ON THE WEEK. ROD COME TODAY IS THE VICTIM OF CHOICE AND WE ARE CURRENTLY SEEING A COLLAPSE. EVEN THOUGH IT'S FORECAST
LOOKED BRIGHT. ALSO SUPER MICRO COMPUTER'S. JP MORGAN SLASHING ITS PRICE TARGET ON THIS COMPANY DOWN TO 500 FROM 950 AFTER THE SHORT SELLER NOTE, WHEN IT GETS BACK IN COMPLIANCE. LET'S DIG INTO WHAT IS HAPPENING WITH BROADCOM. ED: THE BROADCOM STORY IS
IMPORTANT, FALLING AFTER THE COMPANY DELIVERED ITS SALES FORECAST, WHICH WAS HEARD BY THE PARTS OF ITS BUSINESS THAT ARE NOT TIED TO ARTIFICIAL INTELLIGENCE. I WANT TO BRING IN BLOOMBERG INTELLIGENCE. THE FISCAL QUARTER, NOT AS STRONG AS HOPED. FULL FISCAL YEAR, $12 BILLION IN AI SALES. THAT IS GOOD. YOU'RE BASICALLY CONCLUDING THAT THE MORE LEGACY BUSINESS ARE NOT DOING AS WELL RIGHT NOW. IS THAT YOUR READER?
>> THAT WAS THE ONLY NEGATIVE, BUT IT WAS NOT SURPRISING. WE HAVE SEEN THE SAME STORY ACROSS MOST OF ITS PEERS WHO HAVE ALREADY REPORTED BECAUSE.COM IS THE LAST ONE TO REPORT. THAT SHOULD NOT HAVE CAUSED
THIS KIND OF REACTION. THE OTHER THING HERE IS, THE AI, MAYBE INVESTORS WERE HOPING FOR EVEN STRONGER UPSIDE. ED: THAT HAS BEEN THE STORY OF DISCERNING SEASON. I WANT TO LOOK AT THESE NON-AI
PARTS. BECAUSE APPLE ON MONDAY AND THE IPHONE. DID WE LEARN ANYTHING NEW ABOUT THAT BUSINESS? AND PERHAPS THE TRAJECTORY OF IT? KUNJAN: NOT REALLY. ALONG WITH OTHER CHIP PLAYERS, WE HAVE NOT SEEN SIGNIFICANTLY STRONGER THAN SEASON OUTLOOKS COMING INTO THIS IPHONE LAUNCH. DESPITE THE REPORTS THAT WE
HAVE BEEN HEARING THAT I -- APPLE IPHONE SHIPMENTS ARE PREPARING FOR 10% HIGHER SHIPMENT VOLUME THIS YEAR. 2023 WAS A DOWN YEAR, SO WE EXPECT VOLUMES TO BE HIGHER BECAUSE OF THAT. BUT WE ARE NOT SEEING ANYTHING OUT OF ORDINARY FROM BROADCOM YESTERDAY. CAROLINE: I WANT TO GO TO WHAT TRUITT SECURITIES IS SAYING. I HATE TO NAME OTHER PEOPLE ON THE STREET, BUT HE IS SAYING IT IS UNPREDICTABLE, IT IS LUMPY WHEN IT COMES TO AI REVENUE GROWTH. BECAUSE AS AND WHEN WE ARE GOING TO GET CUSTOMERS NAMED. WHEN WILL WE HEAR OF ACTUAL
CUSTOMERS WANTING THEIR CHIPS BEING MADE BY BROADCOM? KUNJAN: IT IS NOT CLEAR, BUT THE FACT ABOUT IT BEING LUMPY IS TRUE. I SHOULD NOT TAKE AWAY ANYTHING FROM THE STRENGTH OF THE GROWTH. WE EXPECT THE CONDUCTIVITY BUSINESSES TO GROW NEXT YEAR. MEMBER, THESE ARE HIGHLY-CONCENTRATED FEW CUSTOMERS, THREE AT THIS POINT. YOU ARE GOING TO EXPECT
LUMPINESS FROM QUARTER TO QUARTER. JUST THE TIMING OF PURCHASES AND BUILDUPS. CAROLINE: WE ASK YOU YESTERDAY A SLIGHTLY UNFAIR QUESTION, BECAUSE I ASK YOU AGAIN BECAUSE YOU ARE A FUNDAMENTALLY-DRIVEN PERSON. MARKET SEEMED TO BE SO EXUBERANT AROUND THESE AI NAMES.
HE GOT A DEJA VU. -- WE GOT A DEJA VU. KUNJAN: BUT WE ARE SEEING ARE STRONG REPORTS ARE NOT STRONG ENOUGH BECAUSE THE EXPECTATIONS ARE STRONGER, HIGHER THAN THAT. I JUST REMIND PEOPLE TO GO BACK TO FUNDAMENTALS. WE SAW THE SAME THING FROM BROADCOM WE SAW FROM NVIDIA. THE DEMAND KEEPS GOING STRONGER AND STRONGER. YOUR BOOKINGS CONTINUE TO
INCREASE. THERE IS NO RISK FACTORS HERE, ESPECIALLY WHEN IT COMES TO AI CHIPS. CAROLINE: KUNJAN SOBHANI, WE THANK YOU FOR YOUR EXPERTISE. LET'S TALK ABOUT ANOTHER CHIP NAMED. INTEL IS CONSIDERING OPTIONS FOR A STAKE IN ITS STRUGGLING AUTOMATED SYSTEM, MOBILEYE, AS PART OF A MAJOR STRATEGY OVERHAUL. THE CHIPMAKER COULD OFFLOAD
JUST SOME OF ITS 88% HOLDING ON THE PUBLIC MARKET. ALL VIA A SALE TO A THIRD PARTY. SHARES FALLING TO A RECORD LOW. IAN KING JOINING US. THE NUANCE IS IMPORTANT HERE, BUT THIS IS A COMPANY STRUGGLING TO DO SOMETHING TO CHANGE IT FOR FORTUNES. IAN: BECK, TWO THINGS HERE. THE FIRST ONE IS, LET'S PUT THIS IN A BROAD CONTEXT. LIKE, INTEL NEEDS MONEY TO EXECUTE ON THIS AMBITIOUS PLAN HAS PUT TOGETHER. DOESN'T REALLY HAVE THAT AMOUNT
OF MONEY FROM ITS OPERATIONS RIGHT NOW. IT IS HAVING TO SCALE BACK SOME OF THOSE AMBITIONS AND IT IS ALSO LOOKING, YOU KNOW, AT PARTS OF WHAT IT HAS AND WHETHER THOSE CAN BE MONETIZED IN SOME WAY, OR FIND A BETTER VALUE IN SOME WAY. MOBILEYE WOULD OBVIOUSLY BE PART OF THAT AND IT HAS ALREADY MADE MOVES IN THAT DIRECTION, SELLING A STAKE IN THE IPO. THE IMPORTANT POINT HERE IS IF YOU LOOK AT WHERE MOBILEYE IS RELATIVE TO WHAT INTEL PAID, WHICH IS CONSIDERABLY LOWER, WOULDN'T THEY FANCY DUMPING IT RIGHT NOW UNLESS YOU COULD FIND AN INDIVIDUAL SELLER THAT WOULD PAY BETTER? ED: THERE ARE SOME BASICS WE SHOULD GO OVER. INTEL HAS BEEN OVER A PERIOD OF TIME CHIPPING AWAY AT ITS STAKE IN MOBILEYE ANYWAY.
OUR UNDERSTANDING FROM SOURCES IS THAT INTEL IS LOOKING AT A LOT OF DIFFERENT THINGS AND I THINK ON THE MOBILEYE SIDE THEIR BOARD HAS TO GET TOGETHER AT SOME POINT AND BRACE FOR SOMETHING THAT MIGHT POTENTIALLY HAPPEN. IAN: YEAH. I MEAN, AGAIN, PUTTING MOBILEYE IN THE GENERAL CONTEXT OF INTEL IS PROBABLY THE SAFEST THING TO DO HERE. IT USED TO BE CALLED ALTERA, THEY ARE DISTORTED -- STARTED TO MOVE THAT TOWARD INDEPENDENT STATUS. THERE ARE OTHER DIVISIONS IN INTEL THAT ARE NOT AS PERHAPS IS CENTRAL TO THE CORE OF WHAT IT DOES.
WE HAD THE CFO THIS WEEK TALKING AT A CONFERENCE. WE HAD THE CEO LAST WEEK TALKING TO A CONFERENCE. WE ARE LOOKING AT THESE THINGS, WE WANT TO BE STREAMLINED, WE WANT TO BE QUICKER TO RESPOND TO THE CIRCUMSTANCES WE ARE IN AND MAKE THE KIND OF DECISIONS TO MAKE SURE WE TAKE HOLD OF OPPORTUNITIES. AT THE SAME TIME, MOBILEYE IS NOT IN GOOD SHAPE. THE ALTERA AS THIS IS NOT IN FANTASTIC SHAPE. IT IS A DIFFICULT SET OF
CIRCUMSTANCES AND THEY HAVE NOT MADE CONCRETE DECISIONS YET. CAROLINE: I THINK THIS IS A BAD TIME TO HAVE TO OFFLOAD MOBILEYE WHEN SHARES HAVE BEEN OFF 70% YEAR-TO-DATE. CAN YOU REMIND US OF THE ISSUES GOING ON THERE? IAN: YEAH. I MEAN, ANYBODY WHO HAS BEEN PLAYING INTO THE AUTO MARKET GOING BACK 2, 3 YEARS AGO, WAS, YOU ARE THE BELL OF THE BALL, YOU ARE FANTASTIC, THE WHOLE WORLD WAS GOING EVEN, THE WHOLE WORLD WAS GOING SELF-DRIVING, WE WERE GOING TO HAVE ROBOTAXIS ON EVERY STREET CORNER. CLEARLY WHAT IS HAPPENING, WHETHER YOU ARE MOBILEYE, THE YOU ARE ANYBODY, IT HAS NOT HAPPENED AT THE PACE AT WHICH SOME HAD PROJECTED.
AND MOBILEYE HAS BEEN A VICTIM OF THAT KIND OF UP AND DOWN CYCLE. IT CLEARLY HAS HAD BAD EARNINGS REPORTS THAT HAVE DIMMED CONSIDERABLY. LONG-TERM EVERYBODY LEAVES IN THE DIRECTION THEY ARE HEADING IN AND THEY HAVE AN IMPORTANT ROLE TO PLAY, BUT RIGHT NOW THEY ARE IN A TOUGH SPOT. ED: BLOOMBERG'S IAN KING, ALONG WITH THE TEAM, REPORTING.
TSMC ACHIEVED PRODUCTION YIELDS AT ITS ARIZONA FACILITY, ON PAR WITH ESTABLISHED PLANTS BACK HOME. AN EARLY INDICATOR THAT ITS U.S. PROJECT IS ON TRACK TO ACHIEVE ITS TARGETS. THAT IS ACCORDING TO A SOURCE.
TSMC SAID IT STARTED ENGINEERING PRODUCTION IN APRIL WITH ADVANCED 4-A NANOMETER PROCESS TECHNOLOGY. WE HAVE BEEN TRACKING THEIR PROGRESS. I THINK WE SHOULD GO BACK TO WHAT IS HAPPENING IN MARKETS, AND BASICALLY SINCE WE GOT THOSE COMMENTS FROM WALLER, BONDS HAVE RALLIED, AND DESPITE A MOMENT OF RELIEF THE STORY IS STILL EQUITIES UNDER PRESSURE WITH THAT PRESSURE COMING FROM TECHNOLOGY, I THINK. CAROLINE: IF YOU ARE LOOKING AT SOME OF THE KEY POINTS DRAGS, ON THE S&P IT IS NO SURPRISE. NVIDIA DRAGGING US DOWN BY 14 POINTS. WE'VE GOT BROADCOM DRAGGING US
LOWER. THEN THE WHO'S WHO OF THE MAGNIFICENT SEVEN, NO WONDER YOU ARE SEEING SUCH A PRESSURE ACROSS THE BOARD ON THE BENCHMARKS. THIS HAS BEEN AN UGLY WEEK MORE BROADLY. THE NASDAQ HAVING ITS WORST WEEK SINCE 2022. ED: WE ARE QUICK, BITCOIN
CONTINUING TO SLIDE, DOWN MORE THAN 3%. GOOD JOB GETTING THAT UP, GUYS. I WENT A LITTLE BIT ROBE THERE. THERE IS A LOT HAPPENING IN REAL-TIME ON THE WEEK. AS YOU KNOW, A TOUGH WEEK BROADLY FOR RISK ASSETS. CAROLINE: AND VOLUMES ON -- UP ON THE S&P FOR THIS FRIDAY. WE WANT TO DIG INTO THE
MICROMUSE. U.K. WATCHDOG IS SENDING A NOTE TO GOOGLE, SAYING IT ABUSES ONE AREA OF ITS BUSINESS THAT ACCOUNTS FOR 80% OF TOTAL REVENUE. YOU CAN GUESS WHAT IT IS. THIS IS "BLOOMBERG TECHNOLOGY." HAVE SPECIAL COVERAGE OF ABC'S PRESIDENTIAL DEBATE BETWEEN VICE PRESIDENT, HARRIS AND FORMER PRESIDENT DONALD TRUMP ON SEPTEMBER 10. THIS IS BLOOMBERG. NOW THE BIDEN ADMINISTRATION IS PREPARING STRICTER EXPORT RULES FOR QUANTUM COMPUTING AND SEMICONDUCTOR PRODUCTS.
ONCE AGAIN TAKING AIM AT CHINA. MCKENZIE HAWKINS JOINS US FOR MORE, AND THIS IS GETTING EVER MORE CUTTING EDGE. >> RIGHT. THE RULES WE SAW THE BIDEN
ADMINISTRATION RELEASE YESTERDAY AS AN INTERIM FINAL RULE, MEANING NOTHING IS SET IN STONE, ARE TRYING TO TAKE AIM AT TECHNOLOGIES LOOKING AT A CHIP ARCHITECTURE EXPECTED TO BE INTRODUCED INTO THE MARKET NEXT YEAR, AS WELL AS CUTTING EDGE QUANTUM COMPUTING AND COMPUTER COMPONENTS. SORT OF TRYING TO ALIGN WITH COUNTRIES AROUND THE WORLD THAT HAVE ALSO INTRODUCED SIMILAR, OR IN SOME CASES IDENTICAL, RULES. AND IN DOING SO LIMIT THEMSELVES FROM THE IMPACT OF EXPORT CONTROLS. WE HAVE A GLOBAL COALITION FORMING. IT INCLUDES THE U.S., JAPAN,
AND THE NETHERLANDS, AS WELL AS OTHER ALLIES SUCH AS THE U.K., CANADA, AND ITALY. ED: IN YOUR STORY YOU QUOTE ALAN ESTEVEZ, WHO RUNS THE COMMERCE DEPARTMENT'S EURO OF INDUSTRIES AND SECURITY.
IN THE QUOTE YOU TALKED ABOUT THE ALIGNMENT OF CONTROLS BEING -- I'M GOING TO READ IT, FRANKLY. DIFFICULT FOR OUR ADVERSARIES. SO, ADVERSARIES IS DIFFERENT KIND OF WORDS, COMPETITORS. AND YOU EXPLAIN THE STRATEGY FROM THE U.S.? >> A LOT OF THE U.S. MEASURES ON SHIPS AND OTHER
EMERGING TECHNOLOGIES ARE GEARED TOWARD CHINA, AS WELL AS RUSSIA, NORTH KOREA, AND IRAN. WE ARE TALKING ABOUT GEOPOLITICAL ADVERSARIES, AS OPPOSED TO TECHNOLOGICAL RIVALS. THE U.S. HAS COMPANIES THAT HAVE SIGNIFICANT FOREIGN RIVALS HEADQUARTERED IN U.S.-ALLIED COUNTRY -- COUNTRIES. THAT IS NOW TRYING TO GET THOSE COMPANIES, BUT BEIJING TO DEVELOP CUTTING-EDGE TECHNOLOGIES THAT WASHINGTON COULD WORRY LENDS CHINA A MILITARY EDGE.
WHILE THIS PARTICULAR RULE IS AN EXAMPLE OF SIGNIFICANT MULTILATERAL ALIGNMENT, THERE ARE ALSO REALLY DIFFICULT MEASURES THE U.S. IS ASKING ALLIED GOVERNMENTS TO IMPOSE WHO ARE WORRIED ABOUT RETALIATION FROM CHINA OR DO NOT NECESSARILY BUY INTO THE SAME DEGREE OF NATIONAL SECURITY AND GEOPOLITICAL THREAT FELT HERE IN D.C. ED: MACKENZIE HAWKINS WITH MORE IMPORTANT REPORTING. THANK YOU VERY MUCH. FROM CHINA TO THE UNITED
KINGDOM. BRITAIN'S COMPETITIONS AND MARKET AUTHORITY SAYS GOOGLE IS ABUSING ITS DOMINANT POSITION IN ADVERTISING TECHNOLOGY. HAVING A WAY FOR POTENTIAL FINES AND CHANGES TO ONE OF GOOGLE'S MOST LUCRATIVE BUSINESSES. CATHERINE GAMEL JOINS US AND REPORTED ON THE NEWS. THE CMA, WHAT IS THE BASIC CONCLUSION THAT THEY HAVE REACHED? >> SO, TODAY THE CME ANNOUNCED ITS STATEMENT OF OBJECTIONS IT SENT TO GOOGLE. THESE ARE PRELIMINARY FINDINGS
THAT GOOGLE HAS BROKEN COMPETITION LAW BY USING ITS DOMINANT MARKET POSITION TO FAVOR ITS OWN SERVICES. THIS BASICALLY MEANS THAT GOOGLE IS USING ITS POWERS TO TAKE THE COMPETITION AWAY AND IT MEANS THAT U.K. ADVERTISERS AND OTHER SERVICES ARE LOSING OUT BECAUSE OF THAT. CAROLINE: THE CMA HAS TEETH, RIGHT? IT CAN EXERT PRESSURE. KATHARINE: DOES, AND WE HAVE SEEN WITH THOSE RECENT PROBES OVER THE YEARS AND IT HAS GROWN IN PROMINENCE. IT IS INTERESTING THAT THE U.K. HAS JOINED THE EU AND U.S.
AND THESE SIMILAR PROBES. ON MONDAY WE HAVE THE DOJ UP -- DOJ'S CASE. AND LAST YEAR AS WELL IN EUROPE WE GOT THESE CHARGES LAID OUT ON THE AD TECH SECTOR. GOOGLE IS IN A BIT OF TROUBLE BECAUSE IT HAS THREE MAJOR GLOBAL REGULATORS ON ITS BACK FOR THIS. CAROLINE:
IT IS IN TROUBLE BECAUSE ALSO IT COULD BE FINED QUITE A LOT OF MONEY. I JUST WANT TO GO INTO WHAT GOOGLE PASTA PS ACTUALS -- GOOGLE'S ACTUAL RESPONSE IS. KATHARINE: GOOGLE'S RESPONSE TODAY IS THAT THE CME'S FINDINGS ARE BASED ON A FLAWED UNDERSTANDING OF THE MARKETS AND IT WILL RESPOND. AT THIS STAGE GO CAN RESPOND, AND THEN THE CMA BOOK COME TO A FINAL CONCLUSION FROM A SEPARATE PANEL. IN THE U.K.
FINDINGS FROM THESE SORTS OF INVESTIGATIONS CAN BE UP TO 10% OF GLOBAL TURNOVER. THAT IS AN EXTREME -- EXTREME END. OR THEY CAN OFFER OTHER REMEDIES THAT MAY BE ABLE TO SOLVE THIS ISSUE. IT IS WORTH KEEPING IN MIND THAT THE U.S. AND EU HAVE SAID THEY WOULD LIKE INVESTMENTS OF GOOGLE'S AD TECH AS WELL. ED:
I'VE HEARD THIS BEFORE, BUT GOOGLE BASICALLY SAYING, YOU DON'T UNDERSTAND THE MARKET YOU ARE TRYING TO ADDRESS. BUT THERE ARE OTHER PARTICIPANTS IN THE MARKET -- I'M ASSUMING THE CMA SPOKE TO THE ADVERTISERS THEMSELVES. IT IS THEIR POSITION IN ALL OF IT? KATHARINE: YES. THIS HAS BEEN A LONG-RUNNING INVESTIGATION FROM THE CMA. THESE PROBES CAN GO ON FOR YEARS. THIS ONE HAS BEEN GOING ON FOR TWO YEARS AND THE CMA DOES TALK TO A BROAD RANGE OF MARKET PARTICIPANTS.
WE DID NOT GET SPECIFICS ON THAT TODAY, BUT THIS IS SOMETHING THAT THEY HAVE BROUGHT UP PREVIOUSLY IN THEIR STUDIES ON DIGITAL ADVERTISEMENT AND OTHER THINGS AS WELL. ED: CATHERINE GAMEL OUT OF LONDON, THANK YOU VERY MUCH. LET'S GET TO ANOTHER STORY, AND THAT IS DARK TRADE CEO POPPY GUSTAVSON WILL BE LEAVING THE BRITISH CYBERSECURITY FIRM EFFECTIVE TODAY. THIS AS THE COMPANY IS ABSORBED BY THOMA BRAVO. GUSTAVSON FOUNDED DARK TRACE OVER A DECADE AGO AND HELPED POSITION THE COMPANY FOR ITS IPO IN 2021, AS WELL AS ITS SALE IN APRIL. CAROLINE: COMING UP, WE HAVE A LOT TO
LOOK AHEAD TO. APPLE'S BIG LAUNCH EVENT MONDAY. WHAT CAN WE EXPECT FROM THE TECH GIANT? WERE TO COME. THIS IS -- MORE TO COME. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: APPLE HAS A GREEN LIT A VERSION OF TENCENT'S WE CHAT APP AND HEAD OF THE COMPANY'S-16 DEBUT. THE TECH GIANT APPROVED AN UPDATE THAT HAS -- THAT ADDS MOMENTS TO THE APP. SPECULATION OF IT IS BE BETWEEN
THE TWO COMPANIES OVER APP STORE FEEDINGS WITH MANY BELIEVING A COULD SNOWBALL TO A POTENTIAL WE CHAT AND FROM THE LATEST IPHONES. ED: ONE OF THE MOST WELL-READ STORIES ON BLOOMBERG THIS MORNING. LET'S TALK SOME MORE ABOUT APPLE. APPLE IS HOLDING A PRODUCT LAUNCH EVENT AT ITS HEADQUARTERS ON MONDAY, WHERE IT IS SET TO ANNOUNCE DETAILS OF THE IPHONE 16 AND SOME OTHER NEW DEVICES. MARK GURMAN HAS ALREADY REPORTED ON IT AND TOLD US WHAT TO EXPECT, BUT IT IS WORTH GOING BACK TO.
THE IPHONE 16, WHAT IS DIFFERENT? THAT IS THE QUESTION EVERY YEAR. WHAT IS ACTUALLY GOING TO MAKE ME UPGRADE THIS TIME AROUND? MARK: OH, IF YOU HAVE AN IPHONE 15 PRO OR PROMAX I DON'T NECESSARILY THINK YOU ARE GOING TO UPGRADE THIS YEAR UNLESS YOU GET A PRETTY GOOD DEAL OR YOU ARE ON AN UPGRADE PATH. THE CHANGES YOU ARE GOING TO BE ON THE MORE INCREMENTAL SIDE. THEY ARE GOING TO FOCUS ON APPLE INTELLIGENCE, WHICH OF COURSE THE 15 PRO AND PROMAX WILL ALREADY SUPPORT.
AND OF COURSE THERE WERE GOING TO BE SOME MAJOR UPGRADES ON THE CAMERA. THE ULTRA-WIDE LENS IS GOING TO MOVE TO A 48 MEGAPIXEL TO MATCH THE STANDARD LENS. IF YOU ARE COMING FROM AN OLDER PHONE, A 14 OR OLDER, GETTING APPLE INTELLIGENCE, GETTING THE TITANIUM, THOSE ARE GOING TO BE SOME NICE UPGRADES. THERE ARE GOING TO BE SOME NEW COLORS AS WELL. THE MOST SIGNIFICANT TEACHER --
FUTURES GOING TO BE ON THE RIGHT SIDE OF THE PHONE BELOW THE POWER BUTTON WHICH YOU CAN USE TO TAKE PICTURES AND VIDEOS. IT IS GOING TO BE CAPACITIVE, SO YOU CAN SWIPE ON IT TO MOVE IN AND OUT, MOVE BETWEEN STILL AND VIDEO. IT IS REALLY ALL ABOUT AI AND THE CAMERA. THE BIGGER CHANGES WILL COME TO THE APPLE WATCH AND AIRPODS. CAROLINE: BLESS YOU, MARK. TALK TO US ABOUT THE AIRPODS
AND WATCH. WHAT DO WE ANTICIPATE THERE? HOW BIG A CHANGE? MARK: THIS IS GOING TO ACTUALLY BE THE 10 YEAR ANNIVERSARY TO THE DATE OF THE ORIGINAL APPLE WATCH INTRODUCTION IN 2014. AND YOU ARE GOING TO SEE A WATCH THAT HAS DISPLAYS THAT IS A LITTLE BIT BIGGER. YOU ARE SEEING FASTER PROCESSORS.
YOU'RE GOING TO SEE SLEEP APNEA DETECTION AS A MAJOR HEALTH FEATURE. YOU ARE ALSO GOING TO SEE THAT DETECTION COME TO THE APPLE WATCH ALTAR, THOUGH THAT WILL MAINTAIN THE DESIGN SINCE 2022. AIRPODS, APPLE IS REVAMPING THE LOW END OF THE LINE. YOU'RE GOING TO SEE A NEW ENTRY
LEVEL MIDTIER AIRPODS. YOU ARE GOING TO SEE QUITE A BOOST BETWEEN THE NEW WATCHES AND AIRPODS AND I THINK THAT IS GOING TO BE EXCITING FOR CUSTOMERS WHO HAVE BEEN WAITING FOR A NEW VERSION OF THE AIRPODS. CAROLINE: MARK GURMAN, WE BRACE OURSELVES. THANK YOU. LET'S ALSO CHECK IN ON THIS MARKETS. IT IS AN UGLY FINISH TO AN UGLY WEEK. NVIDIA, THE BIGGEST POINT STRAP
NOW. OFF BY MORE THAN 5%. WE ARE NOW JUST A 2.5 TRILLION DOLLARS COMPANY, FOLKS. THIS IS THE WORST DAY FOR BROADCOM SINCE MARCH 2020. THE SOX, ALSO UGLY. ED: THE S&P 500 DOWN THE MOST SINCE MARCH 2023. NASDAQ 100, WORST WEEK SINCE NOVEMBER 2022. NVIDIA HAVING ITS WORST WEEK
CENTS -- SINCE SEPTEMBER 2022. THE STORY WE ARE WRITING ABOUT THOUGH IS TECHNOLOGY IS UNDER PRESSURE IN SPITE OF AND ON TOP OF THE ECONOMIC DATA AND THE FED SPEAK WE GOT TODAY. UGLY I THINK IS A FAIR WORK TO -- WORD TO USE. CAROLINE:
PUT IT INTO CONTEXT. THESE ARE STOCKS THAT HAVE RUN UP MORE THAN 100% OVER THE COURSE OF THE YEAR TO DATE. SO WE HAVE TO ACKNOWLEDGE THAT. WHEN YOU GET A 430 $3 BILLION
EROSION IN MARKET CAP IN FIVE DAYS THAT MATTERS TO EVERYONE WHO HAS A 401(K), WHO IS EXPOSED TO THESE SORTS OF BENCHMARKS. ED: JUST ONE QUICK COMMENT ON NVIDIA. LOOK AT THE NUMBER OF RETAIL INVESTORS THAT HAVE GONE INTO THAT NAME AND THINK ABOUT THAT ON A DAY LIKE TODAY. CAROLINE: AND ARE THOSE 2X LEVERAGE TO? THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." ED:
WHAT A FRIDAY SHOW IT HAS BEEN. RECAP ON THE PODCAST. WE PUBLISH IT ALL OVER THE BLOOMBERG PLATFORMS. THANK YOU TO EVERYONE IN NEW YORK AND SAN FRANCISCO.
THIS IS "BLOOMBERG TECHNOLOGY."
2024-09-07