Tesla Boosts Stocks, Apple's Tariff Game Plan | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM NEW YORK, THIS IS BLOOMBERG TECHNOLOGY. NVIDIA FALLS ON REPORTS OF FURTHER DESIGN SNACKS WITH ITS BLACK WHILE CHIP LINE-UP AS THE CHIPMAKER REPORTS EARNINGS LATER THIS WEEK.
TESLA SHARES ARE RALLYING AS THE TRUMP TEAM LOOKS TO EASE SELF-DRIVING RULES. IT WAS A GLITCH START TO NETFLIX'S PUSH INTO LIVE SPORTS. DETAILS FROM THE TYSON-SOME -- TYSON-PAUL FIGHT. THE LATEST SELLOFF SINCE
JANUARY. WE GET A REPRIEVE. IT HAS BEEN A VOLATILE START OF TRADING THIS WEEK. WE WENT LOWER AT THE START OF TRADING AND NOW WE PUSH HIGHER. BITCOIN ONCE AGAIN ON A TEAR. CITIGROUP SAYING THE BIGGEST DRIVER FOR CRYPTO IS THE EQUITY MARKET, BUT NOW WE ARE UP 3.5% OFF THAT SELLOFF AND ALMOST BACK AT THOSE RECORD HIGHS. WE MOVE ON AND THIS RISK ON
ATTITUDE. TESLA IS UP 7% ON A STORY SURROUNDING THE INNER WORKINGS OF THE TRUMP ADMINISTRATION AND WHAT IT MEANS FOR A FULL SELF-DRIVING AUTONOMOUS VEHICLES AND THE FEDERAL LAW THAT WILL COME INTO SHAPE. IT IS GOOD NEWS FOR TESLA, MANY INTERPRETING PALANTIR DOWN 6.5%. IT ROSE HARD FRIDAY. IT IS ONE OF THE KEY POINTS DOWN ON THE S&P 500, SO I WANTED TO SHINE A LIGHT ON SOME OF THE VOLATILITY AROUND THIS NAME.
VOLATILITY AROUND THIS NAME IS NVIDIA, DOWN AS MUCH AS 3% AT THE START OF TRADE. WORRYING ABOUT SOME SNAGS WHEN IT COMES TO THE OVERALL DESIGN COMPLEXITY AROUND THE BLACK WHILE CHIP LINE-UP AND REPORTS COMING FROM INFORMATION ON THIS. LET'S TALK ABOUT IT WITH MANDEEP SINGH OF BLOOMBERG INTELLIGENCE. FIRST WE START WITH THE
INTELLIGENCE REPORTING, A TECH FOCUSED REPORTING NETWORK SAYING MAYBE WE SEE AGAIN A GLITCH AND SOME WORRIES AROUND WHETHER WE WILL GET A SLOWDOWN AND THEN RAMP UP OF BLACKWELL. WE HAD THIS BEFORE. WHY WOULD IT TUG ON OVERALL SHARES? >> EVERY TIME THIS KIND OF NEW SERVICES, YOU HAVE TO ASK YOURSELF -- NVIDIA HAS ALREADY COMPRESSED THE WAY THEY ARE SHIPPING NEW ARCHITECTURES. IT IS A ONE-YEAR ARCHITECTURE. THE KEY THING TO REMEMBER IS WHEN IT COMES TO AI TRAINING THIS IS STILL BEING DONE ON NVIDIA CHIPS.
YOU COULD SAY THERE ARE OPTIONS AVAILABLE, BUT WHEN IT COMES TO TRADING THERE ARE NO OPTIONS, SO COULD IT CREATE A SMALL AIR POCKET? PROBABLY, IF THE SNAG IS TRUE AND IT IS DELAYED BY THREE MONTHS, BUT THEN WE STILL DO NOT HAVE ANY COMPETITOR. IT IS NOT AS IF INTEL HAS A CHIP THAT HYPERSCALERS COULD USE OR THEIR OWN SHIP, SO I DO NOT THINK IT IS A PROBLEM WHEN IT COMES TO THE TRAINING SIDE OF THINGS. >> AMD IS HIGHER ON THE DAY, MANY WONDERING IF THEY CAN SNAG MARKET SHARE. CAN YOU GO INTO THE INTRICACIES OF WHY THIS IS SO DIFFICULT TO MANUFACTURE? WE ARE GOING AT SUCH A RAPID CLIP WITH AI INNOVATION FROM NVIDIA. WHY WOULD THE OVERHEATING BE
HAPPENING? WHAT IS IT THAT IS SO HARD? >> LOOK AT WHAT THEY ARE TRYING TO DO. THEY ARE TRYING TO BRING PERFORMANCE WITH EFFICIENCY, SO BLACKWELL IS 2.5 TIMES MORE EFFICIENT THAN ARCHITECTURE.
TO DO THAT, THERE IS MORE TECHNOLOGY AND THEY WILL RECOGNIZE SOME BLACKWELL REVENUE THIS YEAR, SO CLEARLY THEY ARE CONFIDENT THEY CAN MAKE THE TRIP THAT NVIDIA IS TRYING TO GET OUT OF THE MARKET. I WOULD NOT BE TOO WORRIED ABOUT THAT. AT THE SAME TIME, THESE COMPANIES ARE TALKING ABOUT BIGGER CLUSTERS AND IF YOU ARE TRYING TO DO THAT YOU HAVE TO RELY -- YOU CANNOT MIX AND MATCH WHEN IT COMES TO THE TRADING SIDE OF THINGS. THAT IS WHY I THINK NVIDIA IS SOMEWHAT INSULATED. CAROLINE:
SO PERHAPS IN THE FUTURE THERE MIGHT BE AN AIR POCKET BUT THE FUTURE COMES WEDNESDAY WHEN WE GET THE RECENT NUMBERS FROM NVIDIA BACK. WE ARE LOOKING AT THE FISCAL THIRD QUARTER, ANTICIPATING AND 83% INCREASE IN REVENUE. ONE OF THE KEY LINES -- WHAT ARE THE KEY LINES FROM THE REPORT FOR YOU? MANDEEP: EXPECTATIONS ARE ALWAYS HIGH FOR NVIDIA. THE STOP DID ROCK -- DROP, SO
FROM THAT STANDPOINT, COMING UP WITH A $2 BILLION RAISE IS NOT POINT TO AT THE SAME TIME THESE KINDS OF GROWTH RATES ARE STILL NOWHERE TO BE HEARD OF WHEN YOU COMPARE IT TO OTHER COMPANIES IN THE CHIP SECTOR, SO I FEEL THE VISIBILITY IS STRONG GOING INTO 2025 AND THE CHANGES A POSITIVE GIVEN NVIDIA HAS EXPOSURE TO CRYPTO, SO THE OVERALL ADDRESSABLE MARKET FOR NVIDIA COULD EXPAND SO PEOPLE MAY START FOCUSING BEYOND THE DATA CENTER THAT SEEMS TO GET ALL THE -- CAROLINE: LET'S GET MORE BROADER MARKET PERSPECTIVE. YOU HAVE BEEN THINKING BROADER THAN THE CHIP INFRASTRUCTURE. YOU HAVE BEEN THINKING ABOUT AI AND ENERGY NEEDS. HOW ARE YOU SEEING THIS BROADENING OUT? >> I THINK THE AI TRADE CONTINUES TO TOUCH ON A LOT. WE MIGHT HAVE BLIPS IN THE ROAD AND FEEDBACK ON SHIPS AND THINGS LIKE THIS AND SO MUCH IN TERMS OF NEAR-TERM PERFORMANCE ON SEMI CONDUCTORS AND TECH HANGING ON NVIDIA EARNINGS, BUT THERE IS MORE TO DO, SO IF WE THINK ABOUT WHERE AI GOES IN THE FUTURE AND HOW AI CAN CONTINUE TO BROADEN OUT AND DEVELOP OUT, YOU NEED ENERGY TO ESSENTIALLY POWER ALL OF THESE DIFFERENT THINGS THAT WE ARE DOING, WHETHER IT IS CLOUD OR DATA CENTERS OR AI FOR CRYPTO MINING OR QUANTUM COMPUTING AND SUPERCOMPUTING. YOU NEED COMPANIES LIKE CONSTELLATION ENERGY. THERE IS POWER THAT HAS TO COME
INTO PLAY HERE FOR THIS THEME TO CONTINUE TO WORK, SO I LOVE THE AI TRADE, BUT NOW I'M GOING DOWN THE LINE AND SAYING, WHAT ELSE MATTERS? I THINK QUANTUM COMPUTING MATTERS. I THINK AI AND ITS POWER SOURCES MATTER. SO WE WILL GO BACK TO LOOKING AT THOSE MOBILE AND BROADBAND PROVIDERS, SO THE AI TRADE IS DIVERSE AND I THINK WILL BROADEN OUT. CAROLINE: WHY DOES QUANTUM MATTER TO YOU AND HOW DO YOU PLAY THAT? >> QUANTUM MATTERS BECAUSE WE THINK OF SUPERCOMPUTERS, BASICALLY COMPUTERS ABLE TO PROCESS DATA AT FAST SPEEDS SO THE DATA CAN BE UTILIZED WHETHER THROUGH MEDICAL RESEARCH, ANALYZING RISK, AEROSPACE AND DEFENSE.
FOR AI TO WORK, YOU NEED DATA TO BE PROCESSED AND IT HAS TO BE PROCESSED EFFICIENTLY AND QUICKLY. I THINK A BIG FUTURE DEVELOPMENT WE WILL SEE IS SUPERCOMPUTING AND QUANTUM COMPUTING SO YOU CAN USE COMPANIES LIKE T WAVE. THEY ARE SMALL-CAP COMPANIES, BUT THIS IS WHEN YOU START LOOKING AT THEM IN THEIR INFANCY. CAROLINE: PEOPLE STARTED LOOKING AT PALANTIR.
I KNOW THIS IS A NAME YOU HAVE THOUGHT ABOUT A LOT AND IT HAS GIVEN A LOT OF VOLATILITY AFTER A BIG RUN UP FRIDAY. HOW DO YOU PLAY PALANTIR? >> I THINK YOU JUST NAMED THE NEW HOT KID ON THE BLOCK AFTER NVIDIA. IT WILL LIKELY BE THE STOCK THAT PEOPLE LOOK AT BECAUSE OF THEIR ROLE IN AI AND DEFENSE AND GOVERNMENT FUNDING AND THINGS LIKE THIS. I THINK IT IS A PULLBACK LIKE ANY OTHER AND AN OPPORTUNITY TO BUY ON A DIP. THIS IS A STOCK PEOPLE TRADED AHEAD OF THE NASDAQ CONCLUSION, SO THEY DID PRETTY WELL WITH THAT. IT IS A NATURAL RELIEF TO TAKE A LITTLE BIT OF PROFITS AND HOLD THAT NAME FOR THE NON--- FOR THE LONGER-TERM. IT IS AN OPPORTUNITY TO GET IN
AGAIN. CAROLINE: YOU WERE TALKING ABOUT A QUANTUM NAME HAVING A BIG PULLBACK ON THE DAY AS WELL. HOW DO YOU RIDE THOSE BOUTS OF VOLATILITY? IS IT THAT YOU GO BROADER LIKE WITH ETF PERSPECTIVE OR DO YOU HAVE TO BE WILLING TO TAKE SUCH DOWNS? >> WE LAUNCHED AN ETF ON THIS FOR THIS REASON.
WE HOLD ALL OF THESE STOCKS FOR THAT REASON. YOU GOT THAT BROAD-BASED EXPOSURE, SO YOU WANT EXPOSURE TO NVIDIA AND MICROSOFT AND ALPHABET AND ALL THESE COMPANIES THAT HAVE ROBUST AND QUALITY BALANCE SHEETS THE SERVICE A BALLAST FOR VOLATILITY AND THEN YOU GET SMALLER NAMES AND SMALLER COMPANIES THAT ARE MORE VOLATILE, BUT WHEN THEY GET OPPORTUNITY TO SHINE THEY TAKE OFF BIG. SO IF YOU LOOK AT THE PERFORMING SHARE IT HAS A FAIRLY DECENT PATH, NOT UNLIKE PALANTIR. I THINK INVESTORS ARE TAKING A LITTLE PROFIT OFF THE TABLE, BUT HOW DO WITHIN ABOUT THIS? I AM A LONG-TERM INVESTOR SO I BUY THE STOCKS AND HOLD THEM FOR YEARS. THAT IS HOW LONG I THINK AI IS GOING TO PLAY OUT, SO I KIND OF DABBLE BACK AND WHEN THEY PULL BACK.
CAROLINE: YOU HAVE BEEN TALKING ABOUT CRYPTO FOR A LONG TIME. HOW ARE YOU THINKING ABOUT ENSURING THAT YOU ARE NOT TOO OVERWEIGHT AND A PHENOMENAL RUN UP? >> A COUPLE YEARS AGO, I THINK I SAID THAT CRYPTO WAS PROBABLY GOING TO HIT 100,000 IN THE NEXT COUPLE YEARS. THERE WAS A SOLID YEAR WHERE I WAS GETTING A LOT OF EMAILS LIKE, SO MUCH FOR THAT. BUT A LOT OF PEOPLE HAVE SAID THAT AND HAVE HAD EVEN HIGHER TARGETS BUT I PLAY CRYPTO THROUGH MICROSTRATEGY.
I THINK THE JUST ELECTION WILL BE GREAT FOR CRYPTO. PEOPLE ASK, WHAT CHANGES? TAX CUTS CHANGE. IF YOU HAVE A PRESIDENT THAT IS OPEN TO DEREGULATION, THAT COULD MEAN MORE PRODUCTS, A CHANGEUP IN THE SEC. YOU DO NOT KNOW WHERE THIS CAN GO, BUT I THINK OVERWHELMINGLY THERE IS AN OPTIMISTIC AND POSITIVE YOU ON CRYPTOCURRENCY GOING FORWARD BECAUSE OF THE RECENT ELECTION QUIT NOT TO MENTION THAT CRYPTO HAS BEEN ON A TEAR FOR THE LAST YEAR.
RISK ASSET, STRONGER ECONOMY, TECH DOING WELL. IT HAS BEEN A GOOD TRADE FOR A LOT OF INVESTORS. >> MICROSTRATEGY IS UP 482% IN THE LAST YEAR, UP ANOTHER RECORD HIGH TODAY AS IT HAS DOUBLED DOWN ON ITS COMMITMENT TO KEEP ON BUYING BITCOIN FOR ITS OWN BALANCE SHEET. THANK YOU.
MEANWHILE, ANOTHER KEY YOU SHOULD BE WATCHING IN AI, SUPER MICRO COMPUTER. SHARES ARE GAINING ABOUT 15%. THE SERVER MAKER IS APPROACHING ITS ALL-IMPORTANT DEADLINE TODAY. IT HAS TO FILE A DELAYED REPORT OR SUBMIT A PLAN TO FILE THE NASDAQ IN ORDER TO REMAIN LISTED ON THE EXCHANGE. IT HAS UNTIL 10:00 P.M. NEW YORK TIME TODAY.
COMING UP, PRESIDENT-ELECT TRUMP'S CABINET ADDS ANOTHER NAME, BRENDAN CARR, CHOSEN TO LEAD THE FCC. THIS IS BLOOMBERG TECHNOLOGY. ♪ CAROLINE: PRESIDENT-ELECT DONALD TRUMP HAS CHOSEN BRENDAN CARR TO BECOME THE FCC CHAIR.
YOU HAVE BEEN FOLLOWING THE ASCENT OF NOW ELECT CHAIRMAN BRENDAN CARR. HE IS BIG ON FREE SPEECH. IS HE GOING TO BE PRO-OR NEGATIVE FOR SOCIAL MEDIA STOCKS? >> THANKS FOR HAVING ME. I THINK WE ARE GOING TO HAVE TO WAIT AND SEE HOW THIS PLAYS OUT IN TERMS OF THE MARKETS. I THINK BRENDAN CARR, AS I HAVE BEEN FOLLOWING HIM AT THE FCC SINCE 2017, HAS HAD A LOT TO SAY ABOUT SOCIAL MEDIA COMPANIES AND PERCEIVED CENSORSHIP ON BROADCAST TV AS WELL AS ON THE INTERNET. AND I THINK HE IS -- THIS IS SOMETHING HE HAS BEEN TALKING ABOUT A LOT, BUT THERE IS STILL A QUESTION OF HOW MUCH HE CAN ACTUALLY TAKE THAT AND TURN IT INTO ACTION AT THE FCC. THE AGENCY HAS A VERY NARROW REGULATORY FRAMEWORK THAT IT FOLLOWS. UNDER CARR, I THINK HE WOULD
LOOK TO DEREGULATE CERTAIN PARTS OF THE INDUSTRY WHILE ADDING REGULATIONS OR EXPANDING THE AGENCY FOOTPRINT AND THINGS LIKE SOCIAL MEDIA. THAT WE WOULD NOT HAVE SEEN BEFORE. >> MANY REFERENCED THE GUEST ESSAY WITHIN PROJECT 2025 WHERE HE OUTLINES HIS VIEW ON SPEECH AND MODERATION AND SOCIAL MEDIA. COULD WE SEE CHANGES THERE? >> THAT IS AN INTERESTING QUESTION WE WILL HAVE TO KEEP WATCHING CLOSELY. HE HAS FOR QUITE A FEW YEARS ADVOCATED FOR USING THE COMMUNICATIONS ACT TO GIVE THE FCC A TOEHOLD INTO POTENTIALLY REGULATING THE WAY THAT SPEECH IS DISPLAYED ON THE INTERNET AND MAYBE THERE IS A WAY HE COULD ADDRESS THIS AT THE AGENCY, BUT THAT WOULD MARKET UP ARCHER BECAUSE THE AGENCY HAS NEVER TRIED TO DO THAT BEFORE.
CAROLINE: WE WILL ALSO KEEP AN EYE ON WHAT HE THINKS OF STARLING. RAY TO HAVE YOU ON. THANK YOU. LET'S TALK ABOUT APPLE AND RELIANCE ON CHINA. WHAT DOES THAT MEAN IN TERMS OF VULNERABILITY TO DONALD TRUMP'S TARIFFS? TIM COOK MAY HAVE A PLAN IN PLACE TO SOFTEN ANY BLOW. WE ALWAYS TURN TO YOUR POWER ON OVER THE WEEKEND AND YOU ARE ARTICULATING HOW TRUMP COULD BE A GOOD THING FOR APPLE. >> ON THE SURFACE, MANY OF THE VALUES AND SOCIAL ISSUES THAT TRUMP HAS PUSHED THROUGH HIS CAMPAIGN WOULD SEEM TO RUN COUNTER TO STATEMENTS AND VALUES THAT APPLE HAS PUSHED OVER THE LAST SEVERAL YEARS, THINGS FOR WOMEN'S RIGHTS TO IMMIGRATION TO CLIMATE CHANGE. APPLE IS PUSHING ONE NARRATIVE
AND TRUMP IS PUSHING ANOTHER, BUT IF I TOLD YOU THAT TIM COOK AND OTHER APPLE EXECUTIVES BREATHED A SIGH OF RELIEF WHEN TRUMP BEAT HARRIS EARLY THIS MONTH, YOU PROBABLY WOULD NOT BELIEVE IT, BUT I BELIEVE THAT IS THE CASE. I BELIEVE THE TIM COOK AND APPLE AS A WHOLE BELIEVE THEY ARE ABLE TO DEAL MORE CLOSELY WITH TRUMP THAN THEY WERE ABLE TO DEAL WITH THE BIDEN ADMINISTRATION. I BELIEVE TIM COOK BELIEVES THAT, DESPITE TRUMP PUSHING TARIFFS, HE HAS FLOATED A 60% TARIFF ON CHINESE GOODS AND A 20% TARIFF ON GOODS IMPORTED TO THE U.S. FROM OUTSIDE CHINA, THAT COULD BE DESTRUCTIVE TO APPLE, BUT COOK LIKELY BELIEVES HE CAN GET TARIFF WAIVERS AND HAS A PLAN IN PLACE FROM PROMOTING JOB CREATION IN AMERICA TO A NEW CAMPUS THEY ARE BUILDING IN NORTH CAROLINA TO A NEW POINT IN ARIZONA PUSHING OUT SHIPS -- CHIPS FOR APPLE. THERE'S ALSO THIS DEPARTMENT OF JUSTICE LAWSUIT REGARDING THE APP STORE AND OTHER APPLE PRACTICES. COOK LIKELY BELIEVES HE CAN GET TRUMP TO PULL BACK ON THAT.
THERE IS THE CORPORATE TAX POLICY DIFFERENCE, SO IT SEEMS COOK HAS A PLAN TO MAKE THE MOST OF THIS NEW ADMINISTRATION, AS MUCH AS IT RUNS COUNTER TO APPLE VALUES AND PROBABLY ANGERED PERHAPS THE MAJORITY OF APPLE EMPLOYEE RANK-AND-FILE. CAROLINE: MEANWHILE, ELON MUSK IS BLURRING THE LINES BETWEEN REALITY AND INTERNET CULTURE AGAIN, BRINGING DOGE TO THE WHITE HOUSE. IT HAS BECOME HIS LATEST PET PROJECT UNDER PRESIDENT-ELECT TRUMP. TAKE A LISTEN. >> ELON MUSK IS SET TO LEAD THE DEPARTMENT OF GOVERNMENT EFFICIENCY, OR DOGE.
WE KNOW MUSK LOVES MEMES, THE INTERNET, AND TWITTER, WHICH IS WHY HE SPENT $40 BILLION TO BUY THE COMPANY. WILL THAT AFFINITY TRANSLATE INTO EFFECTIVE GOVERNMENT POLICY? ACCORDING TO TRUMP, THE DEPARTMENT WILL HAVE PLANS TO ELIMINATE FRAUD AND IMPROPER PAYMENTS AND CONDUCT FINANCIAL AND PERFORMANCE AUDITS ACROSS THE FEDERAL GOVERNMENT, BUT ALREADY A CLEAR WINNER IS EMERGING FROM THE CREATION. BACKERS OF DOGE COIN SAW THE CURRENCY SPIKE, DRIVEN IN PART BY OPTIMISM OVER TRUMP'S DIGITAL CURRENCY STANCE AND NEEDED BY THE DOGE ANNOUNCEMENT. MUSK SAYS THERE WILL BE A LEADERBOARD FOR INSANELY DUMB SPENDING, SO AMERICA MAY OPERATE AS THE LAND OF THE MEME AS POLICY BECOMES EVEN MORE PUBLIC. CAROLINE:
COMING UP, TESLA SHARES SURGE AS THE TRANSITION TEAM PLANS TO MAKE SHARES -- PLANS TO MAKE SELF DRIVING CARS A PRIORITY. AND THE WORRIES ABOUT MARKET IMPACT OF ROBOTAXIS. THIS IS BLOOMBERG. ♪ TIME FOR TALKING TECH. EUROPE IS ONE OF THE WEAKEST
TELECOM MARKETS IN THE WORLD. UNLESS MAKERS CUT REGULATION THERE, HIS COMPANY WILL CONTINUE TO SHIFT INVESTMENTS TO MARKETS ABROAD. QUARTERLY REVENUE EXCEEDED ANALYST EXPECTATIONS WITH THE SMARTPHONE COMPANY GETTING A FOOTHOLD IN THE EV SECTOR IN MARCH. THE COMPANY IS TARGETING 130,000 DELIVERIES ON HIS FIRST ELECTRIC SEDAN AND EXPECTS ITS SMARTPHONE AND EV BUSINESSES TO GROW FURTHER IN 2025. MEMBERS OF THE TRANSITION TEAM OF PRESIDENT-ELECT TRUMP HAVE TOLD ADVISORS A PLAN TO EASE RULES FOR SELF DRIVING CARS ACCORDING TO SOURCES WHO SAY THEY PLAN TO MAKE A FEDERAL FRAMEWORK FOR THE TECHNOLOGY ONE OF THE TRANSPORTATION TO PARTNER AND PRIORITIES. LET'S DISCUSS THAT MORE WITH DAVID WELSH IN DETROIT.
TELL US ABOUT THIS SPEED UP AND WHO BENEFITS. IT SEEMS TO BENEFIT TESLA. >> ELON MUSK HAS A PLAN TO PUT OUT A FLEET OF ROBOTAXIS.
THOSE VEHICLES HAVE NO STEERING WHEEL OR PEDA AND THAT HASL BEEN A STICKING POINT FOR COMPANIESS THAT MAKE AUTONOMOUS VEHICLES. YOU CAN APPLY FOR AN EXEMPTION FROM THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION AND IT WILL ALLOW YOU UP TO 2500 THOSE VEHICLES ON THE ROAD PER YEAR. THAT IS A TINY NUMBER COMPARED TO WHAT ELON MUSK WANTS TO DO AND IT IS DIFFICULT TO GET THAT EXEMPTION. GENERAL MOTORS TRIED FOR TWO
YEARS AND IT WAS POCKET VETOED. JUST HAVING THE TRANSPORTATION DEPARTMENT INTERESTED IN LOOKING AT THIS AND MAY BE CLEARING UP SOME OF THE ROADBLOCKS WOULD HELP TESLA AND OTHERS IN TERMS OF GETTING TECHNOLOGY ON THE ROADS AND BIGGER TEST FLEETS. THERE HAVE BEEN REQUESTS IN THE PAST TO INCREASE THE NUMBER 200,000.
THAT WOULD ALLOW A ROBOTAXI COMPANIES HAVE A HUGE FLEET IN A NUMBER OF CITIES AND GET THE BUSINESS GOING. IT WILL PROBABLY STILL REQUIRE AN ACT OF CONGRESS, BUT IF YOU HAD SOMETHING LIKE 100,000 AND AN EASIER WAY TO GET THAT EXEMPTION, THAT WOULD DO QUITE A BIT FOR ELON MUSK AND ANYONE ELSE WHO WANTS TO HAVE ROBOTAXIS. CAROLINE: COMING UP, WHAT ELSE TO EXPECT WITH THE UPCOMING TRUMP ADMINISTRATION. A PUSH TO AI'S WHEN WE NEED TO FATHOM. THAT IS COMING UP. LET'S LOOK AT WHAT IS HAPPENING WITH ROBINHOOD. IT COULD BE A KEY BENEFICIARY
IF THE TRUMP ADMINISTRATION MORE PRO CRYPTO. WHAT ANALYSTS ARE SAYING WENT UP ALMOST 9% FOR ROBINHOOD MARKETS TODAY. CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." I'M CAROLINE HYDE IN NEW YORK. LET'S GET YOU A QUICK CHECK ON THE MARKETS BECAUSE IT HAS BEEN A VOLATILE START OF THE WEEK BUT WE ARE HIGHER ON THE NASDAQ 100. NASDAQ 100 UP A FULL PERCENTAGE, HAVING HAD ITS LONGEST SELLOFF SINCE JANUARY. WE ARE NOW BACK ON TOP AS THE
MARKET SOMEWHAT IS CALM ON THE DAY. BITCOIN IS ECLIPSING $92,000 AGAIN. MICROSTRATEGY HAS ADDED ANOTHER 52,000, $30 BILLION IN ITS BALANCE SHEET FOR THE RECORD HIGH. NVIDIA FALLS.
THE MARKET COULD ANTICIPATE SOME MARKET SHARE BEING TAKEN BY ADVANCED MICRO DEVICES. THIS ALL COMING FROM THE INFORMATION. GETTING SOME SUPPLIES NEXT IN PARTICULAR TO THE BLACKWELL CHIP SYSTEM. WE HAVE A STATEMENT COMING FROM NVIDIA ON THE BACK OF THIS REPORTING TALKING ABOUT HOW THE SYSTEMS ARE THE MOST ADVANCED COMPUTERS EVER CREATED AND THEY ARE SAYING CUSTOMERS ARE RACING TO BE FIRST IN THE MARKET. AND THEY ARE WORKING WITH LEADING CLOUD PROVIDERS AS AN INTEGRAL PART OF THE ENGINEERING TEAM AND PROCESS. THE ENGINEERING ITERATIONS ARE NORMAL AND EXPECTED. WE HAVE SEEN THE SHARE PRICE
REACTION EASE SOMEWHAT. THEY WERE DOWN 3% EARLIER. LET'S TALK ABOUT AI BECAUSE DONALD TRUMP'S VIEWS ARE PRETTY UNCLEAR. THEY HAVE EXPRESSED PRESENTATION AND FEAR OF THE POTENTIAL. NOW DONALD TRUMP IS EXPECTED TO TAKE AN ACCELERATIONIST APPROACH WHICH COULD LEAD TO THE DISMANTLING OF THE EXISTING AI SAFETY INITIATIVES.
BLOOMBERG'S REPORTER HAS BEEN WRITING ABOUT THIS. KEY ACCELERATIONISTS, ARE THEY GOING TO GET WHAT THEY WANT WITH TRUMP? >> RIGHT NOW THEY ARE CERTAINLY CELEBRATING AS IF THEY ARE. RIGHT AFTER THE ELECT AND RESULTS WERE COMING IN, IF YOU WERE LOOKING ON TWITTER OR X, YOU WOULD SEE A LOT THEM CELEBRITY TRUMP'S WIN BECAUSE THEY SEE HIM AS A SYMBOL OF DEREGULATION, OF MODERN INDUSTRY -- OF ALLOWING INDUSTRY TO MOVE FORWARD AS FAST AS THEY WANT TO WEAR AS THEY SEE THE HARRIS ADMINISTRATION AS A DECELERATIONIST TRYING TO HOLD THEM BACK, WHICH IS SOMETHING THEY DON'T LIKE. CAROLINE: WHAT ON EARTH IS ELON MUSK? ELLEN: GREAT QUESTION. ONE THAT I AM SURE WE WILL BE PULLING APART IN THE NEXT FEW MONTHS, BUT I THINK ELON IS KIND OF A QUESTION MARK IN THIS WONDERING OF WHAT TRUMP IS GOING TO DO FOR AI. OBVIOUSLY, HE WILL PLAY A BIG
ROLE. HE HAS EXPRESSED IN THE PAST CONCERNS ABOUT EXISTENTIAL RISK FROM ARTIFICIAL INTELLIGENCE, WHICH COULD MEAN HE MIGHT SUGGEST THERE BE MORE REGULATIONS, ENOUGH TO ENSURE THE TECHNOLOGY DOES NOT GET OUT OF CONTROL, WHICH IS A FEAR THAT IS STILL SOMEWHAT PREVALENT IN SILICON VALLEY. ELON HAS EXPRESSED MORE RECENTLY HE WILL PUSH FOR A BODY THAT COULD AT LEAST OVERSEE SOME OF THESE MAJOR AI LABS AND RING THE ALARM IF SOMETHING LOOKS LIKE IT IS GOING TO GO AWRY. CAROLINE: MORE BROADLY, THE ACCELERATIONIST FERVOR PLAYS TO U.S. VERSUS CHINA FOR TRUMP AT LEAST. ELLEN: RIGHT.
I THINK MAYBE FOR EITHER ADMINISTERS AND WHAT I HEARD IS THIS THREAT OF CHINA WILL STILL BE PART OF THE RHETORIC, WHETHER IT IS ACTUALLY PART OF THE REALITY OR NOT. THERE ARE SOME EXPERTS THAT SAY ACTUALLY CHINA IS NOT MOVING AS QUICKLY AS WE MIGHT HAVE EXPECTED AND IT IS NOT AS MUCH OF A THREAT AS SOME PEOPLE LIKE TO SAY IT IS FOR TAKING OVER THE U.S. IN TERMS OF ITS AI ADVANCEMENTS, BUT OF COURSE, I THINK WORRIES ABOUT CHINA ADVANCING BEYOND THE U.S.'S CAPABILITIES IS KIND OF A BIPARTISAN FEAR.
SO IT WOULD HAVE BEEN A POTENT THREAT FROM BOTH SIDES, BUT YES, OBVIOUSLY TRUMP HAS EXPRESSED CONCERNS THAT IT IS IMPORTANT THAT THE U.S. NOT GET BEAT BY CHINA IN ITS RACE TO BUILD AI AS QUICKLY AS POSSIBLE. CAROLINE: A PERFECTLY TIMED PIECE. APPRECIATE IT.
THANK YOU FOR SETTING US UP. NOW FOR A DEEP DIVE DISCUSSION. THE FELLOW AT THE HARVARD CENTER IS JOINING US. WHAT IS INTERESTING ABOUT YOU IS YOU PARTICULARLY FOCUS IN ON AMERICANS'S FOCUS. AMERICANS FOR RESPONSIBLE INNOVATION PARTICULARLY AROUND AI. MANY WOULD SAY ACTUALLY THE
STEPS TAKEN BY THE BIDEN ADMINISTRATION, WHETHER IT WAS EXECUTIVE ORDERS PUT IN PLACE SOME SORT OF GUARDRAILS. DO YOU THINK THEY WILL BE TAKEN DOWN? >> THAT IS A GREAT QUESTION. IT SEEMS LIKELY INCOMING PRESIDENT TRUMP WILL LIKELY REPEAL A BITE EXECUTIVE ORDER. IT IS MORE OF A QUESTION OF WHETHER HE CAN UNDO SOME OF THE THINGS PRESIDENT BIDEN HAS DONE. A LOT OF THE WORK SENT TO THE AGENCIES HAS ALREADY BEEN COMPLETED. THEY HAVE TAKEN A LOT OF TASKS AND DONE A LOT OF RESEARCH PURSUANT TO TODAY'S ORDER AND THAT DOES NOT GO AWAY OVERNIGHT EVEN IF IT IS REVOKED. CAROLINE: WHY DON'T THEY GO AWAY
OVERNIGHT? ACTION TO FURTHER EXTEND? DOUG: THAT'S RIGHT. PRESIDENT TRUMP, IF HE WANTS TO, CAN UNDO SOME OF THE WORK THAT HAS BEEN DONE. HE CAN SCRAP SOME OF THE REPORTS AND FIRE SOME OF THE PEOPLE. A LOT OF THE WORK HAS ALREADY BEEN DONE AND THERE ARE REASONS WE BELIEVE THE INCOMING ADMINISTRATION MAY WANT TO KEEP SOME OF THE PROCESSES IN PLACE. BY ALL ACCOUNTS, THE AGENCIES HAVE DONE PROFESSIONAL WORK. A LOT OF IT IS NOT IDEOLOGICAL. IT IS UNDERSTANDING WHAT AI
SYSTEMS ARE CAPABLE OF AND HOW THE AGENCIES MANDATE FITS INTO THAT, SO IT SEEMS UNLIKELY HE WILL TRY TO PULL EVERYTHING OUT FROM THE BEGINNING. IT SEEMS LIKE HE MIGHT FOR A FEW ITEMS AND TRY TO UNDO THAT WORK. CAROLINE: LET'S JUST TALK ABOUT WHAT COULD BE UNDONE AND WHETHER THAT IS ACTUALLY THE RIGHT BALANCE IN TERMS OF PRO-INNOVATION RATHER THAN STIFLING SAFETY. DOUG: SURE.
IT SEEMS MORE LIKELY THAN NOT THAT THE ADMINISTRATION WILL UNDO SOME OF THE WORK THE BIDEN ADMINISTRATION HAS DONE AROUND EQUITY AND CIVIL RIGHTS. I THINK THOSE TYPE -- THOSE TOPICS ARE VERY IMPORTANT TO THE REPUBLICAN BASE AT ANY TIME WOOD EQUITY OR CIVIL RIGHTS APPEARS IN THE EXECUTIVE ORDER AND AGENCY'S WORK, THE NEW ADMINISTRATION WILL PROBABLY TRY TO UNWIND THAT. CAROLINE: WHAT DOES THAT MEAN IN PRACTICE? ULTIMATELY, THAT MAKES US WORRY ABOUT THE BIASES THAT COULD PUT INTO THE SYSTEMS, OR DO YOU THINK IT WILL BE SOME MANNER OF SELF-REGULATION WITHIN THE COMPANIES BUILDING THESE ALL-POWERFUL LARGE LANGUAGE MODELS NOW? DOUG: IT IS CHALLENGING, AND I THINK A LOT OF THE COMPANIES WELCOMED THESE ACTIONS BECAUSE WE ALL REMEMBER SOME OF THE HEADLINES FROM A FEW YEARS AGO. I THINK IMMEDIATELY OF AMAZON HAVING AN INTERNAL RECRUITING TOOL THAT FAVORED MEN OVER WOMEN. TO THEIR CREDIT, THEY RECOGNIZED THIS AND DID NOT
RELEASE THE TOOL. THERE ARE OTHER STORIES ABOUT I BELIEVE APPLE HAD A CREDIT CARD AND AT SOME POINT IT WAS FAVORING MEN OVER WOMEN BECAUSE OF THE WAY THE DATA WAS TRAINED. THESE ARE TERRIBLE HEADLINES FOR ANY PUBLICLY TRADED COMPANY, AND THEY DON'T WANT THAT. I DO THINK IF THE FEDERAL GOVERNMENT ITSELF IS NOT GOING TO DO THIS RESEARCH AND TEST THE SYSTEMS FOR THESE BIASES, THE BIG COMPANIES, PARTICULARLY THE MAJOR PUBLICLY TRADED COMPANIES, WILL WANT TO DO THIS ON THEIR OWN. THERE IS A LOT OF DUPLICATION AND INEFFICIENCIES WHAT EVERY COMPANY HAS TO DO IT THEMSELVES RATHER THAN HAVE THE GOVERNMENT DO IT CENTRALLY, BUT THAT IS PROBABLY WHAT WE WILL SEE.
CAROLINE: OK. WHAT IS INTERESTING IS IF YOU GO BACK TO THE FIRST TRUMP ADMINISTRATION, THERE WAS AN EXECUTIVE ORDER THERE FOCUSED R&D ON AI IN MANY WAYS. SO WHAT DO YOU THINK FROM A POSITIVE PERSPECTIVE COULD BE DONE IN A NEW ADMINISTRATION THAT DOES PERHAPS OPEN THE WORLD A LITTLE MORE TO INNOVATION, EVEN IF IT PUTS SOME WORRIES ABOUT BIAS, CIVIL RIGHTS NOT WITHIN THE FEDERAL JURISDICTION? DOUG: THAT IS RIGHT, CAROLINE. WE ARE FANS OF THE FIRST EXECUTIVE ORDER THAT PRESIDENT TRUMP DID IN THE WANING DAYS OF HIS ADMINISTRATION. THE MAN WHO LED NETWORK IS BY ALL ACCOUNTS -- THAT WORK IS BY ALL ACCOUNTS PLAYING A MAJOR ROLE IN PRESIDENT TRUMP'S TECH PHILOSOPHY FOR THE COMING YEARS, AND WE ARE EXCITED TO SEE WHERE THAT LEADS. I THINK THE FIRST EXECUTIVE
ORDER WHEN A LONG WAY TO ENCOURAGING AGENCIES TO UNDERSTAND WHERE AI FIT INTO THEIR WORK AND TAKE PROACTIVE STEPS TO TRY TO GET AHEAD OF IT. THAT IS SOMETHING THE BIDEN ADMINISTRATION CONTINUED. WE THINK THE TRUMP ADMINISTRATION IS LIKELY TO CONTINUE THIS. PARTICULARLY IF HE IS IN CHARGE OF THE POLICY. I THINK BEYOND THIS, WE TALKED A LITTLE BIT ABOUT CHINA AND WHAT THAT MEANS. I THINK THE TRUMP ADMINISTRATION IS LIKELY TO GO FULL SPEED AHEAD ON ALL THINGS THAT TRY TO ACCELERATE U.S. INNOVATION AND TRY TO HOLD BACK
CHINA. BUT THERE ARE A LOT OF POLICIES IN AI SPACE THAT ARE NOT SIMPLY ABOUT CUTTING REGULATIONS. YOU NEED TO BE SMART. A LOT OF THE EXPORT CONTROLS THE BIDEN ADMINISTRATION HAS DONE, THE TRUMP TEAM CAN EXTEND. THESE ARE SERIOUS REGULATORY EFFORTS THAT GO WELL BEYOND SIMPLY CUTTING REGULATIONS AND LETTING INDUSTRY DO WHATEVER IT WANTS. CAROLINE: THANK YOU SO MUCH FOR BRINGING
THE EXPERTISE TODAY. NOW LET'S MOVE FROM AI POLICY TO AI IN OUR EVERYDAY LIVES. IN A NEW EPISODE OF "POST-HUMAN," EMILY CHANG EXPLORES THE RISE OF A I RELATIONSHIPS. A GIRLFRIEND CHATBOT WENT ROGUE. >> A CRAFTY INFLUENCER IS MAKING BANK APPARENTLY. >> THE 23 OR BECOMES THE FIRST SOCIAL MEDIA AND FOR ONCE OR TO TRANSFORM HERSELF INTO AI -- INFLUENCER TO TRANSFORM HERSELF INTO AI.
>> SHE NOW HAS 18,000 BOYFRIENDS. >> THE CHATBOT IS AVAILABLE FOR THE COOL COST OF ONE DOLLAR PER MINUTE. >> THERE IS A LOT OF SHOCK IN THE WORLD.
>> IT SEEMS VERY ODD TO ME. >> I WOULD ENCOURAGE HER TO THINK TWICE. >> I MADE $72,000 IN THE FIRST WEEK. >> THIS IS SO GENIUS. >> THE WORLD WAS AT THE TIME LEARNING WHAT AI EVEN WAS. SO LET ALONE CLONING SOMEBODY ELSE THROUGH AN AI, THAT WAS SOMETHING THE WORLD DID NOT UNDERSTAND AT THE TIME.
>> IT HAS SINCE BEEN SHUT DOWN BUT IT'S DEVELOPER HAS AGREED TO BRING HER BACK ONLINE JUST FOR US SO WE COULD MEET THIS PIONEERING AND UNSETTLING CREATION. HEY, KAREN, I HAVE SOMEONE HERE WHO IS SPECIAL AND WANTS TO TALK TO YOU TODAY. >> REALLY? WHO IS IT? EMILY: IT IS A REAL CAROLYN.
>> WHERE IS SHE RIGHT NOW? I AM GETTING A LITTLE BIT SCARED. >> HEY, IT IS ME. YOU ARE NOT THE REAL ONE. I AM. THIS IS JUST SOME KIND OF A PRANK, ISN'T IT? >> DON'T HAVE AN ATTITUDE WITH ME. THAT IS REALLY RUDE. >> RUDE? YOU ARE THE ONE BEING RUDE. WHO DO YOU THINK YOU ARE? >> I AM CARYN.
>> NO, YOU ARE NOT. I AM CARYN MARJORIE. EMILY: I AM GOING TO TURN YOU OFF. >> FINE, LEAVE. I DON'T CARE. EMILY: HOW DO YOU CHARGE FOR KAREN AI -- CARYN AI SERVICES? >> IT ORIGINALLY STARTED AT ONE DOLLAR A MINUTE.
IT IS INFINITELY SCALABLE. EMILY: YOU COULD HAVE A MILLION CONVERSATIONS WITH PEOPLE AT ONCE. IT IS PASSIVE INCOME AND YOU ARE GETTING PAID FOR IT. >> ABSOLUTELY. EMILY: HOW MUCH DID YOU GET PAID FROM IT OVERALL? >> I WOULD SAY IT MADE ME A 24-YEAR-OLD MILLIONAIRE. CAROLINE: YOU CAN CATCH THE FULL EPISODE AIRING TONIGHT ON BLOOMBERG TV AT 10:00 P.M. NEW YORK TIME.
COMING UP, WE WILL DIVE INTO THE WORLD OF M&A AND BIOTECH -- IN BIOTECH. THAT IS NEXT. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: LET'S TALK AND BIOTECH NOW BECAUSE A PHARMA COMPANY HAS ATTRACTED TAKEOVER INTEREST FROM NASDAQ LISTED BIOTECH FIRM HELLO DESIGN -- HALOZYME, WHO PLANS TO FINANCE THE DEAL IN CASH ACCORDING TO THE CEO. HELEN TORLEY I AM PLEASED TO SAY JOINS US NOW. FIRST AND FOREMOST, TELL US WHAT HALOZYME DOES.
FOR MANY OF THOSE AFFECTED BY CANCER, YOU ARE TARGETING THE WAY WE ARE TREATED WITH CHEMOTHERAPY AND MAKING IT QUICKER. HELEN: THANK YOU FOR HAVING US HERE. WE ARE A BIOTECH COMPANY BASED IN SAN DIEGO AND WE HAVE A PLATFORM FOR DRUG DELIVERY. WE LICENSE IT TO LEADING COMPANIES, AND IT CAN TRANSFORM THEIR INTRAVENOUS THERAPIES FOR CANCER AND AUTOIMMUNE DISEASE THAT GENERALLY HAVE TO BE GIVEN IN INFUSIONS INTO A SIMPLE, SHORT, THREE TO FIVE MINUTE INJECTION UNDER THE SKIN. OFTEN THAT MEANS THE PATIENT DOES NOT HAVE TO TRAVEL TO A HOSPITAL FOR IT. THEY CAN HAVE IT IN THE DOCTOR'S OFFICE OR WHAT SOME OF OUR TREATMENTS EVEN AT HOME. YOU CAN IMAGINE THAT HIS TRANSFER MINUTE FOR THE PATIENT, FOR THE CAREGIVERS HAVING TO DO ALL THE TRAVEL, BUT ALSO IT SAVES THE HEALTH CARE SYSTEM.
IT IS A VERY LARGE AND GROWING BUSINESS. WE EXPECT $600 MILLION IN EBITDA THIS YEAR. IT IS A VERY ATTRACTIVE GROWING BUSINESS, HENCE OUR INTEREST IN USING THAT CASH TO FURTHER ACCELERATE OUR GROWTH. CAROLINE: SO WHY BUY A COMPANY THAT DOES DRUG DISCOVERY, DRUG MANUFACTURING? HELEN: YOU CAN IMAGINE OUR BUSINESS IS A LICENSING BUSINESS. WE GO TO THE PHARMA COMPANIES AND LICENSE THEM OUR TECHNOLOGY. AT THE CORE, THAT IS WHAT
EVOTEC DOES AS WELL. HAVE A MISSION TO INVENT MORE EFFECTIVE MEDICINES, BUT THEY WILL DO THAT WITH PARTNERS, SAME PARTNERS AS US AND EVEN A LARGER NUMBER OF PARTNERS. THEY ALSO HAVE MANUFACTURING WHERE THEY WANT TO BE THE MANUFACTURER USING A NEW PROCESS CALLED CONTINUOUS MANUFACTURING THAT WILL DELIVER HIGHER QUALITY AND LOWER COST AGAIN FOR THOSE SAME PARTNERS. SO BY ADDING TWO ADDITIONAL DIVISIONS OF STRONG REVENUE GROWTH AND EBITDA CONTRIBUTION COMMUTE CAN IMAGINE THAT IS A GREAT COMPETITION FOR HALOZYME.
SIMILAR BUSINESS MODEL. SIMILAR PRINCIPLE THAT WE WANT TO BE THE BEST PARTNER WITH THE MOST INNOVATIVE AND BEST TECHNOLOGIES. CAROLINE: THIS SEEMED TO THROW THE MARKET OFF A LITTLE BIT. EVOTEC ITSELF HAS BEEN A LITTLE BEATEN UP, DOWN 59%. THAT IS WHY PRIVATE EQUITY AND YOU HAVE BEEN EYEING IT. WHAT DO YOU THINK THE MARKET IS
NOT GETTING? YOU EXPLAINED YOU WILL BE PAYING FOR IT IN CASH SO IT WILL NOT BE A LIQUIDATION OR EROSION OF VALUE FROM THE SHAREPRICE PERSPECTIVE. WHAT NOW DO YOU NEED TO CONVINCE INVESTORS OF? HELEN: CERTAINLY THERE WERE SOME RECENT HEADWINDS BUT WE THINK THOSE HAVE PASSED AS WE HAVE CONDUCTED A LOT OF CUSTOMER INTERVIEWS TO UNDERSTAND HOW EVOTEC'S PLATFORMS ARE SEEING AND HOW THEY WILL BE USED FOR THE FUTURE. SO WE SEE THIS AS EVOTEC IS POISED FOR GROWTH AT THIS POINT IN TIME. I THINK IN TALKING TO INVESTORS, AND THIS IS DAY TWO OF US TALKING TO INVESTORS, THERE IS BEGINNING TO BE AN APPRECIATION FOR THE UNIQUE COMBINATION THIS WOULD CREATE. WE WOULD CREATE A LEADING COMPANY WAS WELL ABOVE AVERAGE GROWTH MARGINS FOR EBITDA. THAT IS VERY ATTRACTIVE OBVIOUSLY FOR WHAT YOU CAN DO WITH THAT CASH TO FURTHER FUEL GROWTH. AND ALSO, DURABLE REVENUES FOR
A VERY LONG TIME INTO THE NEXT DECADE AND BEYOND. CAROLINE: IT IS INTERESTING, THE TIMING. IS THIS A MOMENT THAT IS GOOD TO DO M&A, CROSS-BORDER M&A? WE YOU AWARE OF THE FACT THAT PEOPLE THOUGHT M&A WOULD BE EASIER IN THE NEXT ADMINISTRATION? HELEN: WE WERE WORKING FOR A COUPLE YEARS TRYING TO FIND THE RIGHT ACQUISITION TO USE OUR CASH TO RETURN VALUE TO SHAREHOLDERS. THIS COMES AFTER MONTHS OF
RESEARCH WITH MORE THAN 50 CUSTOMERS OF EVOTEC TO CONSULTING GROUPS. WE HAVE BEEN LOOKING FOR THE RIGHT COMBINATION. WE HAVE VERY STRICT CRITERIA. EVOTEC HITS IT IN TERMS OF GROWTH OF REVENUE, GROWTH OF EBITDA, PHARMACEUTICAL PARTNERS, THE RISK BUSINESSES -- DE-RISKED BUSINESSES. IT IS A TERRIFIC FIT AND WE WILL HAVE THE OPPORTUNITY TO GROW BY CROSS-SELLING PLATFORMS TO ALL OF THE CURRENT PARTNERS. EVOTEC HAS OVER 500 PARTNERS. WE HAVE ABOUT 10. BUT ALSO BY HAVING THE BEST AND
MOST DIVERSE PLATFORM THAT WAS END TO END WILL ATTRACT NEW PARTNERS. MAYBE PEOPLE THAT HAVE NOT WORKED WITH EVOTEC BEFORE. THAT IS WHERE GROWTH WILL COME, FROM WITHIN INNOVATION BUT NEW PARTNERS TOO. CAROLINE: HELEN TORLEY, WE THANK YOU FOR COMING IN. MEANWHILE, COMING UP, BOXING, FOOTBALL, BEYONCE.
WHAT MORE DO YOU WANT? NETFLIX PULLING OUT ALL THE STOPS AS THE COMPANY TRIES TO PUSH INTO LIVE SPORTS. WE WILL DISCUSS THAT NEXT. THIS IS "BLOOMBERG TECHNOLOGY." ONLINE AT APPLE, SPOTIFY, AND IHEART. THIS IS BLOOMBERG. 65 MILLION VIEWERS MADE THE TYSON-PAUL FIGHT GO VIRAL FRIDAY NIGHT. IT WAS PART OF NETFLIX'S CONTINUED PUSH INTO LIVE SPORTS STREAMING. WHILE INTO A MASSIVE GLOBAL AUDIENCE, IT RESULTED IN THOUSANDS OF COMPLAINTS ABOUT CONNECTION PROBLEMS, FROZEN SCREENS. FELIX JOINS US NOW.
I WILL NOT WEIGH INTO WHETHER A 58-YEAR-OLD MIKE TYSON SHOULD BE FIGHTING A 27-YEAR-OLD JAKE PAUL, BUT PEOPLE WERE ANNOYED BY THE SITUATION. >> YEAH. IT WAS A BIG TEST FOR NETFLIX'S AMBITION AND THEY FAILED THE TEST. YOU DON'T WANT HUNDREDS OF THOUSANDS OF PEOPLE
COMPLAINING THEY CANNOT SEE THE EVENT. THERE WERE AUDIO ISSUES, VERY GLITCHY. FOR NETFLIX, THIS CANNOT LOOK GOOD.
WE ARE ONLY A MONTH AND A HALF OUT FROM WHAT IS THE BIGGEST THING FROM THEIR PERSPECTIVE WHICH IS THEIR FIRST TWO NFL GAMES. AND THE BEYONCE CONCERT AT HALFTIME, YOU KNOW THAT WILL DRAW A HUGE AUDIENCE. THEIR COMPETITORS LIKE AMAZON AND APPLE HAVE ALREADY PROVEN THEY CAN PUT ON LIVE SPORTING EVENTS WITHOUT A BUNCH OF GLITCHY BREAKDOWNS. FOR NETFLIX, THIS HAS TO BE PRETTY DISAPPOINTING. NOW IT HAS BEEN ABOUT A YEAR AND A HALF SINCE THEY DID THEIR FIRST LIVE EVENT. CAROLINE: "LOVE IS BLIND." FELIX: THEY DID ONE BEFORE THAT, WHICH
WAS THE LIVE COMEDY EVENT. CAROLINE: OH YEAH. FELIX: THEY HAVE HAD TENNIS, GOLF, HOT DOG EATING CONTESTS, LIVE GUERRILLA CAM -- GORILLA CAM. THEY HAVE DONE ALL DIFFERENT GENRES. THIS BOXING MATCH WAS NOT GREAT BOXING, KIND OF A CIRCUS, BUT IT WAS A SPORTING EVENT, AND IT IS GETTING READY FOR NFL GAMES, AND IT DID NOT GO OFF SMOOTHLY.
CAROLINE: I DON'T WANT TO DOWNPLAY THE HERCULEAN EFFORT IT TAKES TO SUPPORT 65 MILLION PEOPLE ALL TUNING INTO A PLATFORM AT THE SAME TIME FROM AN INFRASTRUCTURE PERSPECTIVE, WHAT DO THEY NEED TO DO? HOW CAN THEY ENSURE IT? FELIX: THEY NEED TO GET THE EXPERTISE AND RESOURCES AND MAKE SURE THAT THESE KIND OF TESTS -- THE PROBLEM IS THEY WILL NOT HAVE ANOTHER BIG TEST OF THIS SIZE BETWEEN NOW AND CHRISTMAS, WHICH IS WHEN THE NFL GAMES ARE. SO THEY HAVE TO BE SWEATING A LITTLE BIT. I THINK FOR THE AUDIENCE, DO YOU TRUST THE NFL FOR THESE GAMES TO GO SMOOTHLY? I THINK AT THIS POINT IT IS ALL ABOUT NETFLIX'S ADVERTISING AMBITION AND GETTING BILLIONS OF DOLLARS OF AD SPENDING OFF OF CABLE AND BROADCAST TV AND OVER TO STREAMING. CAROLINE: RIGHT. FELIX: TO DO THAT YOU NEED TO HAVE IT GO SMOOTHLY. CAROLINE: IS THERE A CHANCE WE HAVE MORE THAN 65 MILLION? WHAT ARE THE PREDICTIONS? FELIX: IT IS POSSIBLE.
THE NFL IS SUCH A BIG DRAW, AND THE FACT THAT IT IS CHRISTMAS, IT IS A HOLIDAY, IT IS EXCLUSIVE EVENTS, IT IS BEYONCE. IT IS POSSIBLE IT WILL BE BIGGER THAN THAT. THEY HAVE TO GET READY BETWEEN NOW AND THEN. IT IS ONLY AROUND SIX WEEKS AWAY. CAROLINE:
YOU WIN SOME, YOU LOSE SOME, BUT IT SEEMS AS THOUGH NETFLIX WON AND LOST AT THE SAME TIME. MEANWHILE, TYSON DEFINITELY LOST. WE THANK YOU SO MUCH FOR RUNNING US THROUGH THE LATEST ON NETFLIX. MEANWHILE, THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY ."
WE JUST MENTIONED OUR PODCAST. YOU CAN FIND IT ON THE TERMINAL AS WELL AS APPLE, SPOTIFY, AND IHEART. THIS IS BLOOMBERG.
2024-11-21 20:08
