Tesla Earnings, Apple in China, TikTok's Bill | Bloomberg Technology
>> THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: I AM CAROLINE HYDE. ED: I AM ED LUDLOW. CAROLINE: FACING ITS WORST START OF THE YEAR IN CHINA SINCE THE COVID PANDEMIC IS A NEW REPORT SHOWS SALES FELL BY 19% IN THE FIRST QUARTER FOR APPLE. CAROLINE: CONSIDERING $95 BILLION AID PACKAGE THAT COULD LEAD TO A NATIONWIDE BAN ON TIKTOK. CAROLINE:
WE PUSH I DID HAS THE LEARNINGS -- EARNINGS CAREER FOCUS ON DEVELOPING SHARES ALREADY SUFFERING THEIR LONGEST DRESSES 2022. THAT IN SO MUCH MORE THIS HOUR. WE SIT WITH MUCH ANTICIPATION OF THE EARNINGS TO COME, SOME RISK APPETITE TODAY. MAYBE THE BAD NEWS IS GOOD NEWS. SOME OF THE BUSINESS ACTIVITY COOL ENOUGH MORE THAN THE MARKET ANTICIPATED MEANS WE DECIDE TO GO INTO EQUITIES AS WE THINK THE FEDERAL RESERVE MAYBE HAS MORE SPACE TO BE CUTTING IN THE SECOND HALF OF THE. NASDAQ CURRENTLY UP 1.5%. TWO YEAR YIELD, 69 MILLION DOLLARS WITH, RECORD AMOUNT COMING TO THE MARKET YET YIELDS FALLING TODAY AS MONEY MOVE INTO SOME OF THE HAVENS, 4.93%. EQUITIES RALLYING ON THIS
PARTICULAR DAY. STOXX 600 IN EUROPE HAVING A STELLAR RUN ON THE MOMENT, OF A PERCENTAGE POINT. -- UP A PERCENTAGE POINT. WE HAVE A LOOK OVERALL AT MONEY MOVING IN TO BOTH RISK ASSET CLASSES AND BITCOIN.
WELL OFF THE HIGHS BUT STILL MONEY COMING IN DESPITE A RELATIVELY STRONG DOLLAR. ED: EARNINGS SENT INDIVIDUAL TECHNICIAN, TESLA GETTING A BOOST. WE WILL GET READY TO PLAY TESLA BINGO. TUNE IN AT THE END OF THE SHOW TO FIND OUT WHAT I'M TALKING ABOUT. BLOOMBERG, NAME A LOT OF PEOPLE WATCHING, A BIG JUMP IN THE SHARES. ADOBE, THE ONE-YEAR ANNIVERSARY
SINCE FIREFLY WAS RELEASED. BIG QUESTIONS ABOUT PARTICULARLY TEXT TO VIDEO. WE HAVE AN INTERVIEW WITH AN EXECUTIVE. APPLE IS INTERESTING. NOW HIGHER IN THE SESSION. WE OPENED LOWER. BASICALLY, TRADING AT THE SAME
LEVEL ON APPLE WE WERE ONE YEAR AGO. IT HAS BEEN A DIFFICULT START TO THE YEAR. CONCERNS PRINCIPALLY ABOUT CHINA, THIRD-PARTY DATA, CAP REPORT RESEARCH SHOWS IPHONE SALES ARE DOWN 19%. MORE INTERESTING PERHAPS IS THE OTHER DATA OUTSIDE OF APPLE SHOWING THOMISTIC HANDSET MAKERS GAINING MARKET SHARE -- DOMESTIC HANDSET MAKERS GAINING MARKET SHARE. APPLE ON WITH HUAWEI. THE DATA DOESN'T SEEM TO BE
WORRYING ANYONE RIGHT NOW. BIG PICTURE AHEAD OF EARNINGS LATER ON NEXT WEEK, APPLE IN FOCUS. LET'S TALK TO MARK. WE STRESSED THIRD-PARTY DATA. IT IS NOT APPLE TELLING US THIS BUT THERE IS A BIT OF CONCERN CHINA IS THE KEY BATTLEGROUND AND THE IPHONE IS LOSING GROUND. >> THIS IS EXACTLY WHAT WALL STREET AND INVESTORS HAVE BEEN BRACING FOR, ANOTHER BIG DECLINE IN CHINA. APPLE HAD ITS BIGGEST DECLINE
IN A COUPLE OF YEARS LAST QUARTER RELATED TO OVERALL SALES AND NOW IT LOOKS LIKE YOU'RE GOING TO SEE ANOTHER DECLINE IN CHINA GIVEN THIS DATA FROM COUNTERPOINT RESEARCH. AS I TYPICALLY SAY, THESE DATA POINTS ARE TYPICALLY NOT EXACTLY ON THE MONEY BUT THEY'RE USUALLY DIRECTIONALLY CORRECT. IF THEY ARE TELLING US IPHONE SALES AND CHINA ARE DOWN BY 15, I WOULD BELIEVE -- BY 1/5, I WOULD BELIEVE. IN ALL LIKELIHOOD, DOWN OF THE OVERALL PICTURE OF CHINA. WHY'S THAT INTERESTING? BECAUSE EVEN THOUGH CHINA HAD ABOUT A $2 BILLION DECLINE IN THE PRIOR QUARTER, TIM COOK ON THE EARNINGS CALL SAID IT IS NOT BECAUSE OF THE IPHONE BUT BECAUSE OF APPLE'S OTHER PRODUCTS THEY SELL IN CHINA.
THIS TIME IT IS LIKELY BECAUSE THE IPHONE IF THESE NUMBERS ARE TO BE BELIEVED. CAROLINE: LET'S TALK ABOUT OTHER PRODUCTS. WE KIND OF HAVE SIGNALING ON THIS BEFORE, THIRD-PARTY DATA GIVING US A SIMILAR PICTURE. WHAT IS NEW IS A SEVEN WE HAVE A NEW EVENT AND IT IS RUN THE NEW IPADS.
>> AS I HAVE BEEN SAYING ON HERE AND THE LAST SEVERAL WEEKS, APPLE IS SET TO LAUNCH ITS BIGGEST REVAMP TO THE IPAD IN OVER FIVE YEARS. GOING TO SEE NEW VERSIONS OF THE IPAD AIR INTRODUCED ON MAY 7. THEY WILL PLAY A VIDEO ON THEIR WEBSITE.
THEY'RE TRYING SOMETHING NEW, VIDEO START TIME OF 7:00 P.M. VERSUS THE USUAL 10:00 A.M. AND ANNOUNCING THIS VIDEO WELL IN ADVANCE. THEY HAVE BEEN TRYING DIFFERENT THINGS LATELY. THEIR USUAL CADENCE IS TO ANNOUNCE THING SEVEN DAYS IN ADVANCE, SO NOW WE ARE GETTING A FULL TWO WEEKS, WHICH IS QUITE INTERESTING.
MAYBE THEY WANT MORE MOMENTUM. TRYING TO SEE FOR THE SMALLER SCALE LUNCHES IF MORE NOTICE BRINGS IN MORE PEOPLE. THIS IS SOMETHING TO LOOK OUT FOR. DO IPAD PRO AND IPAD AIR, NEW MAGIC KEYWORDS ALL COMING ABOUT ONE MONTH BEFORE THEY ANNOUNCED THE NEW AI INITIATIVES AT THE WORLDWIDE DEVELOPERS CONFERENCE IN EARLY JUNE.
THIS WILL BE SIGNIFICANT IN THE HOPE IF YOU ARE ON WALL STREET OR A SHAREHOLDER OF THE COMPANY IS THAT THIS WILL BOOST IPAD CELLS WHICH HAVE BEEN DOWN QUITE CONSIDERABLY THE LAST SEVERAL QUARTERS DUE TO A LACK OF ANY UPDATES ACROSS 2023. CAROLINE: AND THEREIN LIES A LOT OF THE ISSUE, A LACK OF UPDATE. MARK, I TELLING US IT FIRST. MEANWHILE, LET'S CONTINUE THE
CONVERSATION. AYAKO YOSHIOKA OF WEALTH ENHANCEMENT GROUP IN THE HOUSE. WHEN YOU'RE LOOKING AT APPLE AND HAVE SEEN SOME OF THE WEAKNESS OF THE WORRIES ABOUT PRODUCT UPDATES, ABOUT PERHAPS BEHIND THE CURVE WHEN IT COMES TO AI, IS THERE'S NO SUCH A SOLID NAME YOU CANNOT AVOID BUT TO REMAIN ALLOCATED TO IT, WOULD YOU START TO TAKE SOME RISK OFF? >> RAGE QUESTION. WHEN WE LOOK AT APPLE, IT IS A GREAT COMPANY. THERE'S SO MUCH CASH ON THEIR BALANCE SHEET. THAT ALLOWS THEM TO BUY BACK A
LOT OF STOCK. IT IS A BIG POSITION WITHIN THE S&P 500 INDEX SO IT IS DIFFICULT NOT TO OWN IT AND YET WE START TO SEE SOME OF THESE ISSUES WITH APPLE IN TERMS OF INNOVATION AND THE BEING ABLE TO BRING NEW PRODUCTS THAT CAN CONTINUE TO GROW AT THE PACE THEY HAVE BEEN GROWING OVER THE LAST SEVERAL YEARS. CAROLINE: I THINK THIS IS SOME OF THE TENSION WE ARE SEEING ACROSS THE SO-CALLED MAGNIFICENT SEVEN. WHEN WE ARE WORRIED ABOUT TESLA AND APPLE WHICH IN MANY WAYS HAVE SIMILAR ISSUES. CHINA WEAKNESS, COMPETITION
FROM CHINA, WORRIES ABOUT LACK OF AN UPDATE FROM OUR PRODUCT. IS IT MORE YET TO LOOK AT VALUATIONS RATHER THAN TRYING TO SEE A NARRATIVE AS TO WHEN YOU GET THE NEXT PRODUCT? >> I THINK IT IS BOTH VALUATION AND FUTURE GROWTH. BOTH APPLE AND TESLA ARE SUFFERING FROM THE ISSUES THAT YOU TALKED ABOUT AND THAT IS DAMPENING THEIR OVERALL GROWTH GOING FORWARD. VALUATION FOR THAT LOWER GROWTH IS A LITTLE BIT HIGHER THAN EVERYBODY WOULD LIKE TO PAY. ED: IF THE MEGA CAPS DON'T MEET, WHAT HAPPENS? >> I THINK THERE COULD BE A LITTLE BIT OF ANOTHER SORT OF SELLOFF IN THE MARKET. WE SAW IT LAST WEEK AND A HALF,
EVER SINCE THE INFLATION PRINT. I THINK WE DO NEED TO SEE A LOT OF THESE LARGER NAMES, MICROSOFT, AMAZON, GOOGLE, META. THEY NEED TO COME OUT AND SHOW US THEY CONTINUE TO GROW AT THE PACE THEY CAN GROW AND SHOW THAT FREE CASH FLOW GROWTH SO PEOPLE CAN CONTINUE TO RELY ON THEM FOR THAT QUALITY GROWTH.
ED: DO YOU GET THE SENSE, OK, THIS IS THE QUARTER WHERE WE LOOK PAST THE AI HYPE AND START AGAIN TO LOOK AT FUNDAMENTALS? DID YOU HAVE EARNINGS GROWTH? HOW IS YOUR FREE CASH FLOW? TRADITIONAL BORING THINGS LIKE THAT? >> I THINK IT WILL BE A COMBINATION OF BOTH. IN TERMS OF YOU HAVE TO PRODUCE THOSE NUMBERS COME THIS FUNDAMENTALS ARE GOING TO MATTER, BUT EVERYBODY WANTS TO LOOK AT THE FUTURE AND SAY, WELL, CAN YOU CONTINUE TO PRODUCE THOSE QUALITY NUMBERS THAT WE HAVE SEEN? SO AI CONTINUES TO BE A TAILWIND. EVERYBODY WANTS TO SEE PRODUCTION OUT OF IT. AND FOR THE CONTINUANCE OF THAT REVENUE AND EARNINGS GROWTH. CAROLINE: WHEN YOU ARE SEEING SUCH A RUN-UP IN BIG TECH OF LATE COME HOW MUCH ARE YOU THINKING ABOUT THE MACRO, THINKING ABOUT THE DATA WE GOT TODAY? >> I THINK AMERICA ALWAYS CONTRIBUTES TO THE OVERALL MARKET NARRATIVE -- I THINK THE MACRO ALWAYS CONTRIBUTES TO THE OVERALL MARKET NARRATIVE. THEY ARE TECHNICALLY THE
LONG-DURATION ASSETS THAT EVERYBODY LIKES TO TALK ABOUT AND ARE MOST IMPACTED BY HIGHER INTEREST RATES. THEY ARE A CRUCIAL PART OF HOW WE LOOK AT THE OVERALL MACRO AS WELL AS THE INDIVIDUAL STOCKS. ED: LET'S TO A CASE STUDY WHICH IS SPOTIFY. IT IS AN INTERESTING PLATFORM. WHAT DOES IT TELL YOU? >> SPOTIFY HAS BEEN ON QUITE A TEAR THE LAST YEAR. THEY HAVE REALLY FOCUSED ON MANAGING COSTS.
AS EVERYBODY HAS SEEN WITH THE RESULTS, THOSE GROSS MARGIN NUMBERS WERE REALLY EYE-POPPING. SEEING THE GUIDANCE FOR GROSS MARGIN TO CONTINUE HIGHER AT 28% NEXT QUARTER IS DEFINITELY SOMETHING THAT WE CAN CONTINUE TO SEE WHAT SPOTIFY, REALLY, GENERATING THAT REVENUE AND THE EARNINGS GROWTH AND MANAGING THE COSTS WHILE THEY DO THAT. ED: THE STOCK ON TRACK FOR ITS BIGGEST JUMP SINCE OCTOBER 2019. AYAKO YOSHIOKA, THANK YOU.
COMING UP, WE TALK SPOTIFY, SHARES JUMPING MOST AS I SAID SINCE OCTOBER 2019. WE ARE GOING TO GO VERY DETAILED ON THE REPORT NEXT. THIS IS "BLOOMBERG." ♪ ED: LET'S GET BACK TO SPOTIFY EARNINGS AFTER THE AUDIO GIANT SWUNG TO PROFIT IN THE FIRST QUARTER. SUBSCRIBER GROWTH. WHAT WERE BEHIND THOSE THINGS? >> OVER THE PAST YEAR, SPOTIFY HAS REALLY CHANGED ITS BUSINESS. ON THE EARNINGS CALL, THE CEO CALLED IT THE NEW SPOTIFY.
THEY REDUCED COSTS SIGNIFICANTLY, PARTICULARLY IN THEIR PODCAST BUSINESS. THEY REDUCED COSTS AND VIRTUALLY DID HAVE TO REDUCE THEIR HEADCOUNT QUITE A BIT BUT WE ARE SEEING THAT PLAY OUT IN THE FIRST QUARTER EARNINGS FOR SURE. CAROLINE: PHENOMENAL MOVE IN SHARES, ACTUALLY, YET STILL SOME OF THE FORECASTS MAYBE BEHIND WHAT THE MARKET HAD ANTICIPATED. THIS IS A FEEL-GOOD FACTOR AROUND PROFITABILITY? >> I THINK THE INVESTORS ARE THRILLED TO SEE THEY'RE STILL GROWING THEIR USER BASE AND SUBSCRIBERS AT PROFITABILITY.
THIS IS ALL HAPPENING WHILE THEY REDUCED THE NUMBER OF PEOPLE WORKING FOR THEM AS WELL AS INCREASING PRICES AROUND THE WORLD WITH MORE PRICE INCREASES TO COME. I THINK INVESTORS ARE FEELING THERE'S A LOT OF OPPORTUNITY TO SQUEEZE MORE REVENUE OUT OF THEIR USERS. ED: IN THE CURRENT PERIOD WHICH TAYLOR SWIFT HAPPENED. I LISTENED TO THE ENTIRE THING ON FRIDAY.
DID THEY TALK ABOUT THAT? >> THEY DID NOT TALK ABOUT TAYLOR SWIFT, THOUGH I WISH. CAROLINE: MORE PERHAPS WHAT THEY WERE TALKING ABOUT, FOCUS ON AUDIO FROM THE BOOKS PERSPECTIVE. SURE, THEY'VE BEEN PULLING BACK IN PODCASTING BUT CAP THERE HEAVY HITTERS LIKE JOE ROGAN. WHAT ABOUT THE ABILITY TO CHARGE MORE FOR AUDIOBOOKS IN FULL, THAT SEEMS TO BE WORKING.
>> YES. WE HAVE REPORTED THIS LAST WEEK AND DANIEL MENTIONED IT TODAY THAT BASICALLY, THEY INTRODUCED 15 HOURS OF AUDIOBOOK LISTENING TO SUBSCRIBERS IN CERTAIN PARTS OF THE WORLD. OF THOSE USERS WHO HAVE THE ABILITY TO PLAY AUDIOBOOKS, 25% HAVE TAKEN ADVANTAGE OF THAT OFFERING. WHAT THEY ARE SEEING IS ADOPTION. WHAT THEY CAN DO WITH THAT IS THEY COULD CHARGE MORE, BREAKOUT AUDIOBOOKS ONLY.
I THINK IT IS GIVING THEM A LOT OF ROOM TO POTENTIALLY PLAY DIFFERENT SUBSCRIPTION TIERS, GIVING THE FLEXIBILITY. CAROLINE: INVESTORS LOVE OPPORTUNITY. THANK YOU FOR TALKING ICE THROUGH WHAT IS A KEY MOVER TODAY. STICKING WITH EARNINGS AND THOSE COMPANIES IN EUROPE, S.A.P. SAYS ITS CURRENT BACKLOG FASTEST GROWTH ON RECORD. SEEKING TO MIGRATE CUSTOMERS
FROM LEGACY ON PREMISE SOFTWARE TO THE CLOUD WHERE IT IS TO OFFER BUSINESS AI SERVICES TO SWEETEN THE DEAL. WE SPOKE TO THE CFO A LITTLE EARLIER TODAY. >> THE ADMIN OF AI HAS CLEARLY PROPELLED THE STORY OF THE TRANSFORMATION TO THE CLOUD TO MOVE OUR CUSTOMERS FROM THEIR ON PREMISE INSTALLATIONS TO CLOUD COVER RESULTING IN AN UPTICK ON A CONSTANT CURRENCY BASIS. ALL THAT IS DRIVEN BY THE CORE OFFERING WE HAVE IN THE CLOUD. ED: TIME FOR TALKING TECH. ELON MUSK SOCIAL NETWORK HIT WITH AN INJUNCTION BY AN AUSTRALIAN COURT TO REMOVE FOOTAGE OF A RECENT TERRORIST ATTACK.
LAST NIGHT AND SYDNEY, THE FEDERAL COURT FOR AUSTRALIA ORDERED X TO HIDE ALL RECORDINGS OF THE ATTACK UNTIL WEDNESDAY. THE COURT WILL CONVENE FOR A SECOND HEARING AT A LATER DATE TO DETERMINE THE VALIDITY OF A REMOVAL NOTICE BY THE COUNTRY'S E-SAFETY COMMISSIONER. ESML -- ASML WEIGHING EXPANSION. THE COMPANY SAID IT SIGNED A LETTER OF INTENT IN THE FINAL DECISION IS SUBJECT TO IRONING OUT A FEW CRUCIAL POINTS. PERPLEXITY AI HAS RAISED ABOUT
62 $3 MILLION IN A NEW FUNDING ROUND THAT ICE THE COMPANY AT MORE THAN $1 BILLION. PERPLEXITY OFFERS AN AI CHATBOT THAT SUMMARIZES SEARCH RESULTS, LIST CITATIONS FOR ANSWERS, AND HELPS USERS REFINE THEIR QUERIES TO GET THE BEST RESPONSES. THE FINANCING DOUBLES THE VALUATION FROM JUST THREE MONTHS AGO. CAROLINE: AI IS STILL SO HOT. LET'S TALK ABOUT ADOBE. IT IS BRINGING MORE GENERATIVE AI TOOLS TO PHOTOSHOP. JOINING US NOW FROM LONDON, DAVID WADHWANI. WELCOME.
HOW IS THIS INCENTIVIZING CLIENTS TO PAY MORE FOR ADOBE? HOW IS GENERATIVE AI BRINGING ABOUT A REVENUE INCREASE FOR THE BUSINESS? >> I THINK WE HAVE TO PUT EVERYTHING WE'RE DOING WITH GENERATIVE AI IN THE CONTEXT OF WHAT WE HAVE BEEN DOING THE LAST YEAR. WE FIRST INTRODUCED GENERATIVE AIA YEAR AGO. IN THAT PERIOD OF TIME, WE HAVE ADDED IMAGING MODEL, ANOTHER VERY IMPORTANT FORMAT FOR CREATIVE PROFESSIONALS. WE HAVE ENABLED CUSTOMIZATION OF THAT CONTENT FOR THEIR SPECIFIC 10 I NEEDS -- DESIGN NEEDS. WE HAVE EXPOSE THAT IN PHOTOSHOP AND ACCRETIVE CLOUD APPLICATIONS, EXPOSED IT IN ADOBE EXPRESS FOR MARKETERS AND CREATIVE PROFESSIONALS AND ENTREPRENEURS.
WE HAVE EXPOSED IT AS A BROAD BASE OF AUTOMATION WORKFLOWS. WHAT THIS HAS DONE IS IT SUPERCHARGED CONTENT CREATION. YOU CAN PRODUCE CONTENT MUCH MORE EFFECTIVELY AND QUICKLY. IF YOUR TREND AUTOMATE WORKFLOW, YOU CAN DO THAT WITH YOUR EXISTING ENVIRONMENTS YOU HAVE. IF YOU ARE A MARKETER, YOU CAN REACT MORE QUICKLY TO ANYTHING HAPPENING ON SOCIAL. IT HAS EMPOWERED BUSINESSES TO
OPERATE AT ANOTHER LEVEL OF SCALE. CAROLINE: I WANT TO TALK ABOUT SCALE AND THE DIFFICULTY ULTIMATELY OF FEEDING DATA IN TO FOUNDATIONAL MODELS. YOU HAVE BEEN UNVEILING THE NEW FOUNDATION A MODEL AND I'M INTERESTED AS TO WHAT IS GOING IN BECAUSE WHAT SET A PART OF ADOBE IS YOU ARE SAFER BECAUSE YOU ARE BUILDING BASICALLY UPON YOUR OWN DATA, YOUR OWN IMAGES THAT YOU OWN STOP YOUR STOCK. BUT THERE ARE RECORDINGS THAT ULTIMATELY, YOUR HAVING TO USE SYNTHETIC DATA WHICH IS SOMETIMES USED FROM RIVAL AI IMAGE GENERATORS. CAN YOU TELL US ABOUT HOW CLIENTS ARE RESPONDING TO WHAT YOUR DATA IS BEING TRAINED ON RIGHT NOW? >> WE ARE WITHOUT A DOUBT THE MOST RESPONSIBLE TRAINING MODEL IN THE MARKET. WE HAVE BEEN VERY THERE THAT WE
HAVE LICENSED RIGHTS FOR EVERYTHING WE HAVE TRAINED ON. WE HAVE A PROCESS THAT WE INTERNALLY CALL ART WHICH IS ABOUT ACCOUNTABILITY, RESPONSIBILITY AND TRANSPARENCY. EVERYTHING WE GENERATE AT ANY MODEL BEFORE IT SHIPS GOES THROUGH THIS PROCESS. WE HAVE BASICALLY A MODERATION SYSTEM IN PLACE SO WE MAKE SURE ANY CONTENT THAT COMES IN DOES NOT HAVE OR IS NOT ENCUMBERED WITH ANY MISAPPROPRIATED IP RIGHTS. CUSTOMERS HAVE BEEN VERY CLEAR
WITH US THAT THERE IS A LOT OF INTERESTING WORK GOING ON AROUND THE INDUSTRY AROUND AI MODELS, BUT WHEN IT COMES TO TRUE PRODUCTION SYSTEMS, WE ARE REALLY AT THE TOP IN TERMS OF THE ABILITY TO USE THIS TO CREATE AND SHIP CONTENT THAT IS GENERATED WITH THESE MODELS. ED: DAVID, THERE'S ONLY ONE SIGNAL QUESTION BEING DIRECTED AT ADOBE RIGHT NOW WHICH IS, WHEN AND IN WHAT FORM WILL YOU HAVE A TEXT TO VIDEO GENERATION PLATFORM AKIN TO SORA? >> I DON'T KNOW IF YOU HAD A CHANCE TO SEE THE ANNOUNCEMENTS WE MADE LAST WEEK AT THE NATIONAL AMERICAN BROADCASTERS VIDEO SERIES, WE ANNOUNCED AND WE TALKED ABOUT HOW WE ARE -- GAVE A SNEAK OF OUR TEXT TO VIDEO CAPABILITIES AS PART OF THAT. WE ALSO ANNOUNCED WE ARE WORKING WITH SORA, WORKING WITH RUNWAY. AND TOGETHER, ALL OF THESE CAPABILITIES ARE GOING TO BE EMBEDDED IN ALL OF OUR CREATIVE APPLICATIONS.
WHAT IS EXCITING ABOUT ALL THIS TEXT TO VIDEO CAPABILITY IS THAT WE HAVE THE ABILITY NOW TO LOOK AT THIS AND SAY, ALL OF THIS GENERATIVE CAPABILITIES IS ANALOGOUS TO MORE CAMERAS IN THE WORLD. THE MORE CONTENT CREATED, THE WAR CONTENT COMES IN OUR SYSTEMS FOR EDITING. WE HAVE JUST BEEN CLEAR OUR TECHNOLOGY FOR VIDEO, ARCHITECTURE AND THE RESEARCH GOT INTO IT, IS SIMILAR TO WHAT YOU SEE ON SORA AND OTHERS AND WE EXPECT TO HAVE OUR MODEL IN MARKET LATER THIS YEAR. ED: THE STRATEGY IN PREMIER -- WHEN I WAS IN JOURNALISM SCHOOL, WE TRAINED ON PREMIER. FULL CIRCLE. YOU'RE GOING USE THIRD-PARTY MODELS.
SO FAR, PHOTOSHOP HAS NOT HAD THE EXTENSION OF THAT STRATEGY. EXPLAIN WHY AND WHAT YOU WILL DO GOING FORWARD. >> WE'RE GOING TO EMBRACE ALL MODELS. PHOTOSHOP, LATER THIS YEAR YOU WILL SEE SUPPORT FOR ANY MODEL THAT CAN BE INTEGRATED INTO PHOTOSHOP WILL BE INTEGRATED INTO PHOTOSHOP. BUT WE ALSO RECOGNIZE EACH MODEL HAS ITS OWN PERSONALITY. AT ANY GIVEN MOMENT, WHAT YOU
GENERATE IN ONE MODEL VERSUS ANOTHER, THERE MAY BE VARIED PREFERENCES. THE ONE THING WE KNOW IS THAT FIREFLY IS GOING TO BE SYNONYMOUS WITH THE BEST QUALITY OF CONTENT, WITH THE BEST DETAIL OF CONTENT, AND WITH THE MOST CONTROLABILITY. THAT MEANS WHATEVER WE CREATE WITH FIREFLY CAN GET MORE DEEPLY EMBEDDED IN OUR TOOLS. WE JUST HAD AN ENORMOUS SET OF ANNOUNCEMENTS IN TERMS OF DOZENS OF NEW CAPABILITIES. AI GENERATION EMBEDDED IN OUR WORK AND THAT IS BECAUSE OF THE WAY WE HAVE FIREFLY. WE EXPECT TO INTEGRATE. ED:
DAVID WADHWANI, GREAT TO HAVE YOU ON, WORKING ONE YEAR SINCE FIREFLY. COMING UP, ALL EYES ARE ON TIKTOK, DIVEST OR BAN BILL. THE FORMER CHIEF OF STAFF TO SENATOR AMY KLOBUCHAR WILL BE JOINING US.
GETTING CLOSER TO THE ONE YOUR TIMELINE WHERE TIKTOK -- ONE YOUR TIMELINE WHERE TIKTOK WILL FACE DIVEST OR BAN. LOOKING AT SHARES OF GENERAL MOTORS. ONE OF THE MOVERS OF THE UPSIDE TODAY, EARNINGS ACTUALLY LARGELY RELATING TO THE LEGACY BUSINESS.
TRUCK SALES DOING WELL. INITIATIVES IN CHINA NOT DOING SO WELL. KEEP TRACKING GM. BIDEN THIS IS "BLOOMBERG." ♪ ♪ ED: WELCOME BACK TO BLOOMBERG TECHNOLOGY. CAROLINE: WE'VE GOT A LITTLE BIT OF MONEY BACK INTO THE TECH SECTOR AFTER WHAT HAS BEEN HEATING UP OVER THE LAST FEW TRADING DAYS. WE ARE ALL BRACING FOR THE EARNINGS NARRATIVE THAT COMES OUT FAST FOR THE REST OF THE WEEK AND SO FAR, SEEING A LITTLE BIT OF BUYING THE DIP THAT WE SEEN IN SOME OF THE TECH NAMES FROM FRIDAY INTO MONDAY, NOW TUESDAY.
NASDAQ 100 HIGHER. LOOKING AT TWO YEAR YIELD CURRENTLY DOWN BY ALMOST FOUR BASIS POINTS AHEAD OF THAT AUCTION OF TWO-YEAR BONDS. A RECORD HIGH, YOU'RE HAVING A GOOD DAY. A LOOK AT SOME OF THE INDIVIDUAL MOVERS AS WE DO ANTICIPATE SOME GOOD EARNINGS NARRATIVES. NVIDIA DOWN 10% FRIDAY BUT MONDAY IT BOUGHT THE DEBT, TUESDAY THEY ARE BUYING THE DIP AGAIN.
MANAGING TO WHITTLE AWAY SOME OF THOSE LOSSES THAT EXTENDED TO MORE THAN $200 BILLION WORTH OF MARKET CAP LOST. YES, WE GET THE EARNINGS LATER BUT WE ALSO ANTICIPATE STILL THE FOCUS ON ARTIFICIAL INTELLIGENCE. THEY'VE GOT A SMALLER MODEL THAT THEY'VE ANNOUNCED TODAY, BILLED BY MICROSOFT'S OWN AI RESEARCHERS WHICH YOU CAN USE MORE ON YOUR ACTUAL DEVICES.
OPEN-SOURCE MODEL AS WELL, SO INTERESTING AS THEY CONTINUE TO BASICALLY CREATE WITH OPENAI. INSTACART DOWN HEAVILY. THIS IS AS WE UNDERSTAND AMAZON IS GOING TO BE GETTING INTO THE WORLD OF GROCERY DELIVERIES. NOT ALWAYS WORK THAT WELL BEFORE, BUT THIS IS THE BREAD AND BUTTER OF INSTACART. ANALYSTS SAY THERE IS ROOM ENOUGH FOR MORE. >> AWAY FROM SOME OF THE PRIVATE NAMES, THERE IS A PUBLIC MIND AND THAT IS TIKTOK AND LEGISLATION INVOLVING TIKTOK WHICH WOULD BAR THE SOCIAL PLATFORM FROM OPERATING IN THE U.S. IF ITS CHINA-BASED OWNER DOESN'T SELL ITS STAKE WITHIN A YEAR.
KAILEY LEINZ IS HERE FROM D.C.. MY UNDERSTANDING TODAY IS THERE IS KIND OF A NEXT PROCEDURAL STEP BEFORE THE MAIN EVENT. WHAT IS GOING TO HAPPEN? >> EXACTLY RIGHT, THIS IS THE U.S. SENATE IN WHICH PROCEDURE DOES LOOM LARGE.
WHAT REALLY NEEDS TO HAPPEN TO GET WE FINAL PASSAGE VOTE IS FIRST IT MUST ASK THE CLOSURE VOTE BEGINNING AROUND ONE. TO BE A QUESTION OF HOW MUCH DEBATE THERE IS OVER THIS PACKET WHICH DOES INCLUDE TIKTOK DIVEST OR BAN BILL BUT PART OF A WIDER BILL WITH $45 MILLION IN AID FOR ALLIES. IN MIND THAT A VERY SIMILAR BILL THAT DID NOT HAVE TIKTOK INCLUDED HAD OVER THE PAST THE SENATE BY A VOTE OF 70-4 MONTHS AGO SO IT IS HIGHLY LIKELY THAT THIS ULTIMATELY WILL PASS. IT REALLY IS JUST A QUESTION OF WHEN AND HOW MUCH DISRUPTION WE COULD SEE FROM REPUBLICAN SENATOR OR DEMOCRATIC SENATOR BERNIE SANDERS OF THE WAY THIS GOES IS WHEN THE CLOSURE VOTE HAPPENS THEY WILL BE A MAXIMUM OF 30 HOURS OF DEBATE AFTER THAT. THIS IS HIGHLY ENABLED -- HIGHLY LIKELY TO PASS THE
SENATE. WORTH KEEPING IN MIND THAT THEY ARE SUPPOSED TO BE ON RECESS THIS WEEK SO IT IS LIKELY THAT A LOT OF SENATORS ARE EAGER TO GET OUT OF WASHINGTON AND ACTUALLY TAKE THEIR TIME OFF IN THEIR DISTRICTS. BUT THEN IT BECOMES A QUESTION OF WHAT HAPPENS AFTER THIS IT'S PRESIDENT BIDEN'S SIGNATURE BECAUSE NOT ONLY DOES THIS GIVE TIKTOK POTENTIALLY A YEAR TO WORK ON THIS DIVESTITURE, BUT ALSO PLANS TO FIGHT THIS IN COURT. THERE IS LIKELY TO BE A LONG LEGAL BATTLE THAT WILL PLAY OUT AND A LOT OF HER MANY QUESTIONS INCLUDING WHETHER OR NOT CHINA WOULD ACTUALLY SIGN OFF ON ANY DEVASTING CHURCH OF BYTEDANCE AND THE TIKTOK U.S. OPERATIONS. WHAT HAPPENS TO THE ALGORITHM? WHO WOULD BE ABLE TO BUY THIS BUSINESS WITHOUT RUNNING INTO ANTITRUST ISSUES? A LOT OF QUESTIONS WILL STILL REMAIN. CAROLINE: AND I THEREFORE ASK A QUESTION
ON THE SENTIMENT YOU ARE HEARING FROM THE PEOPLE YOU SPEAK TO ON CAPITOL HILL ABOUT WHAT THIS MEANS FOR CHINA AND THE U.S., WHAT THIS MEANS FOR OTHER CHINESE BUSINESSES LOOKING TO EXPAND IN THE U.S. KAILEY: THAT'S A VERY REAL CONCERN. THOSE TWO ARE MORE OPPOSED TO THIS LEGISLATION, KEEPING IN MIND THAT INITIALLY IT WAS A BILL THAT WAS THE TIKTOK NEED TO BE THE BEST WITHIN SIX MONTHS. YOU DID HAVE SOME CRITICS TALKING ABOUT HOW THAT TIMELINE SEEMED UNREALISTIC. THERE WERE ALSO OTHERS CALLING ATTENTION TO THE FACT THAT THIS IS A PIECE OF LEGISLATION TARGETING A PRIVATE BUSINESS AND WHAT KIND OF PRECEDENT THAT MAY SET IF THE U.S.
IS SUDDENLY PURSUING THE KIND OF POLICY. BY AND LARGE, IT DOES SEEM THAT ESPECIALLY AMONG THE INTELLIGENT AND NATIONAL SECURITY COMMUNITY THEY ARE MUCH MORE CONCERNED WITH THOSE NATIONAL SECURITY ISSUES AROUND DATA PRIVACY, THE WAY IN WHICH THE CHINESE GOVERNMENT MAY BE ABLE TO ACCESS USER DATA FROM THE WELL OVER 100 MILLION AMERICANS ON THIS PLATFORM AND ALSO ON THE PROPAGATION OF MIS OR DISINFORMATION THAT CAN BE ON THIS PLATFORM IN THE RUN-UP TO THE ELECTION. WORTH KEEPING IN MIND THAT THE TIMELINE THAT HAS BEEN SET WHICH WOULD BE DIVESTITURE BETWEEN NINE MONTHS UP TO A YEAR, THAT WILL TAKE US WELL BEYOND THE VOTE IN NOVEMBER. CAROLINE: ARTICULATELY PUT.
WE THANK YOU. LET'S GET MORE OF A DEEP DIVE ON ALL OF THIS. THE FORMER CHIEF OF STAFF TO SENATOR AMY KLOBUCHAR, AND NOW A FELLOW AT THE HARVARD CENTER WHERE HE FOCUSES ON U.S. TECH POLICY AND PARTICULARLY THINKING AROUND THOUGHTFUL AI POLICY.
DOUG, I AM INTERESTED AS TO THE NUANCE HERE OF PROMOTING INNOVATION AT THE SAME TIME AS PROMOTING SAFETY. WILL THIS ULTIMATELY SEE LESS SOCIAL MEDIA COMPETITION HERE IN THE U.S., AND WHAT DOES THAT MEAN FOR INNOVATION? DOUG: TIKTOK IS REALLY A UNIQUE CASE. IT IS A CASE WHERE WE ARE LOOKING AT MOST POLICYMAKERS WANT TO FOSTER COMPETITION.
THEY ALSO RESPECT FIRST AMENDMENT RIGHTS AND FREEDOM OF EXPRESSION. BUT ON BOTH SIDES OF THE ISLE YOU'VE SEEN THE ARGUMENT MADE THAT TIKTOK IS A UNIQUE NATIONAL AIR THE THREAT AND I THINK WHEN THE INTELLIGENCE COMMUNITY COMES TOGETHER AND MAKE THE CASE THAT THIS IS THE STUFF THAT NEEDS TO BE TAKEN FOR FINANCIAL SECURITY, POLICYMAKERS BY AND LARGE WON'T LISTEN. I ALSO THINK IT IS LIKELY THAT THIS WILL HOLD UP IN THE COURTS FOR THAT VERY REASON, BUT TIME WILL TELL. ED:
LET'S GO WITH THE BAN SCENARIO. YOU ARE A STUDENT OF U.S. TECHNOLOGY POLICY. YOU HAVE A CD THAT SHOWS YOU UNDERSTAND THE ORGANS OF GOVERNMENT. YOU EXPLAINED TO ME HOW YOU GET 150 MILLION AMERICANS TO NOT USE TIKTOK IN A 12 MONTH TIMELINE. DOUG:
THE WAY THAT THE LEGISLATION WORKS, IT WOULDN'T BE AN IMMEDIATE ON AND OFF SWITCH. YOU WOULD HAVE THE APP STORE BE UNABLE TO UPDATE THE APP AND WHAT MAKES TIKTOK SO GREAT IS THAT IT IS SO USER-FRIENDLY. SO OVERTIME IT WOULD DEGRADE AND PEOPLE WOULD MOVE TO OTHER THINGS. I AGREE THAT THIS -- IF THERE IS NO DIVESTITURE THEY WOULD BE A LARGE PUBLIC OUTCRY, BUT I BELIEVE THE CONGRESS WOULD BE ABLE TO MAKE A CASE, OK, WE GAVE A FULL YEAR OF NOTICE, WE MADE IT SO EVERYTHING WAS IN PLACE FOR DEVASTING CHURCH AND WE TRIED TO MAKE THIS PAINFULLY CLEAR.
AND IF THERE ISN'T DIVESTITURE, THE QUESTION IS WHY? THERE MAYBE ANTITRUST CONCERNS BUT I BELIEVE ANTITRUST REGULATORS WOULD BE COGNIZANT OF THE FACT THAT THIS IS FOR SALE AND REALLY BE CONDUCIVE TO TRYING TO MAKE IT HAPPEN. IT SEEMS LIKELY THAT THE CHINESE GOVERNMENT HAS SAID THEY ARE NOT GOING TO BE OK WITH THIS AND THEY ARE GOING TO STAY IN THE WAY AND IF THE CHINESE CONGRESS PARTIES STANDING IN THE WAY OF THE INVESTITURE, THAT JUST MAKES THE CASE FOR THE LAW EVEN MORE CLEAR AND CONGRESS REALLY WILL HAVE WIND AT ITS BACK IN TERMS OF PUBLIC OPINION, BUT I AGREE IT COULD BE MESSY. A LOT OF PEOPLE RELY ON TIKTOK FOR THEIR LIVELIHOOD AND IF THERE IS NO THE INVESTITURE, THERE'S GOING TO BE A LOT OF PAIN. BUT THERE ARE OTHER OPTIONS. THIS IS SOMETHING THAT CONGRESS BELIEVES IS WORTH IT IN THE LONG RUN EVEN THOUGH IT CAN BE DIFFICULT. CAROLINE: TALK TO US ABOUT THE OTHER OPTIONS AND WHETHER THERE ARE ENOUGH OF THEM.
SOME OF THE SUDDEN QUESTION MARKS ABOUT HOW SWIFTLY A POTENTIAL BAN OR DIVESTITURE WOULD GO THROUGH IS BECAUSE FORMER PRESIDENT TRUMP STARTED HIGHLIGHTING CONCERNS AROUND ME TA BECOMING MORE POWERFUL WITHOUT TIKTOK. IS THAT A CONCERN FOR YOU? DO YOU THINK THERE IS ENOUGH COMPETITION OUT THERE? DOUG: THAT IS A CONCERN. WITH INSTAGRAM AND WITH FACEBOOK ,META REALLY DOES HAVE A MAJOR POSITION HERE AND IT WOULD BE WELL-POISED TO CONSOLIDATE, CONTROL IF TIKTOK IS TAKEN OFF THE TABLE. THAT IS SOMETHING A LOT OF POLICYMAKERS DON'T WANT TO SEE. BUT HERE, THEY ARE WILLING TO COUNT ON THAT POSSIBLY HAPPENING. THERE ARE ALSO OTHER COMPETITORS IN THE SPACE. TIKTOK REALLY BECAME A PHENOMENON BECAUSE THE ALGORITHM IS SO GOOD AND IT USES WHAT THEY WANTED, THAT IS NOT A SECRET NOW. THE ALGORITHM ITSELF IS SECRET
BUT WHAT THEY ARE USING TO TRY TO DRIVE ENGAGEMENT AND REALLY MAKE IT FUN AND EASY TO USE AND VERY SOCIAL ARE THINGS THAT OTHER SOCIAL PLATFORMS CAN COPY NOW. IF TIKTOK WERE NO LONGER A COMPETITOR, I THINK YOU WOULD SEE OTHER APPS SPRING UP TO TRY TO DO THE SAME THING. ED: LET'S GO BACK TO YOUR EXPERIENCE OF ADVISING A SENATOR . PUT THAT HAT ON. WHAT IS THE BENEFIT TO A LAWMAKER GOING STRONG THE ANTI-CHINA RATIONALE OF DOING THIS IF THEIR CONSTITUENTS ARE SAYING I LOVE TIKTOK, I USE TIKTOK.
THEY HAVE TO THEN GO BACK AND EXPLAIN WHY THEY ARE DOING THIS, ALL TOLD, I AN ELECTION CYCLE. DOUG: YOU'RE RIGHT, THAT'S DIFFICULT. THE REASON IT WORKS IS BECAUSE THE LEADING LAWMAKERS ALL HELD HANDS AND SAID THIS IS SOMETHING WE WERE THE CARE ABOUT. THE BILL CAME THROUGH THE HOUSE COMMITTEE UNANIMOUSLY, WITH NONE OPPOSING. THAT ALMOST NEVER HAPPENS AND IT SHOWS HOW BROAD THE SUPPORT IS. THE VOTE IN THE HOUSE WAS VERY STRONG.
SOME MEMBERS ON THE FAR RIGHT AND FAR LEFT OPPOSE, BUT MOST VOTED FOR IT. YOU'RE GOING TO SEE A SIMILAR THING IN THE SENATE. IF THERE'S ONE THING THAT LAWMAKERS LIKE IT IS POLITICAL COVER AND WHEN THEY CAN ACTUALLY HOLD HANDS AND DO SOMETHING TYPICAL ALTOGETHER, IT MAKES IT MUCH EASIER FOR EACH ONE OF THEM TO GO BACK TO THE DISTRICTS AND SIMILAR TO THEIR CONSTITUENTS AS SOMETHING THAT NEEDED TO BE DONE. ED: FROM THE POLITICAL TO THE TECH
POLICY, I THINK YOU ARE WELL POISED TO EXPLAIN ALL OF THAT. COMING UP, APPLE SALES IN CHINA SLIDE AS THE COUNTRY FACES ITS WORST START OF THE YEAR SINCE COVID ACCORDING TO SOME THIRD PARTY DATA. WE WILL TALK ABOUT THAT AGAIN NEXT. CAROLINE: LET'S LOOK AT SHARES OF OTHER SOCIAL MEDIA COMPANIES. TRUMP MEDIA AND TECHNOLOGY IN PARTICULAR. WE UNDERSTAND THE BLANK CHECK
DEAL HAS BROUGHT ANOTHER $1.3 BILLION IN STOCK AFTER MEETING CERTAIN TARGETS. THIS IS PART OF THE SPECIAL PURPOSE ACQUISITION, BUT ULTIMATELY WITH THREE $6 MILLION IN ADDITIONAL SHARES, IT WOULD BRING THE TOTAL POSITION TO THE 150 MILLION SHARES. THIS IS BLOOMBERG TELEVISION. CHECK OUT THE QR CODE FOR ALL THE DETAILS. THIS IS BLOOMBERG.
♪ LET'S GET BACK TO APPLE. IPHONE SALES FELL IN CHINA BY 19% DURING THE MARCH QUARTER, WORST PERFORMANCE IN THE MARKET SINCE 2020 ACCORDING TO DATA FROM INDEPENDENT RESEARCH FIRM COUNTERPOINT. BLOOMBERG INTELLIGENCE ANALYST IS HERE TO GET HIS THESIS. I WOULD NOTE THAT THE STOCK EVEN WITH THE PERCEIVED NEGATIVE HEADLINE ISN'T REACTING NEGATIVELY. I GUESS MAYBE THAT IS BECAUSE IT IS A SITUATION WE'VE BEEN AWARE OF FOR A LITTLE WHILE? >> ABSOLUTELY. ONE OF THE NUMBERS YOU REMEMBER IS THEY CAME OUT A LITTLE WHILE AGO, A COUPLE WEEKS AGO AND SAID THE GLOBAL SHIPMENTS ARE DOWN ABOUT 10% FOR APPLE, SO I THINK A LOT OF WHAT WE SEE TODAY IS ALREADY ACCOUNTED FOR IN THAT BIG NUMBER. SO IT'S GOING TO BE FUN TO SEE
WHAT HAPPENS NEXT WEEK WHEN APPLE REPORTS AND OUR EYES ARE MOSTLY ON THE GUIDANCE FOR Q3 OR THE NEXT QUARTER MORE THAN WHAT IS HAPPENING IN THE CURRENT QUARTER. CAROLINE: FOR THE CURRENT QUARTER, JUST TO REMIND VIEWERS, WE ARE EXPECTING A 5% DECREASE IN OVERALL REVENUES. THAT IS ACCORDING TO HER EXPECTATIONS OVER A BLOOMBERG IN THE CONSOLIDATE ALL OF THE ANALYSTS. BUT THE NEXT QUARTER AFTER THAT THERE IS GOING TO BE GROWTH, 2% GROWTH. WHAT DRIVES THAT? IS THIS THE NEW UNVEILING OF CERTAIN IPADS? >> THAT IS WHERE WE THINK MAYBE THERE COULD BE A LITTLE BIT OF UNREST IN TERMS OF ESTIMATES COMING DOWN. WHEN YOU LOOK AT ESTIMATES RIGHT NOW, ESTIMATES FOR THE CURRENT QUARTER FOR THE RESULTS THAT ARE COMING OUT NEXT WEEK, IPHONE REVENUE IS DOWN 11%.
IF THE SHIPMENTS WERE DOWN 10%, THEY COULD BE DOWN 8%, 9% OR SO BECAUSE WE ALL KNOW THAT THE PROMAX MODEL IS DOING WELL AND HAS HIGHER PRICE. FOR NEXT QUARTER, WE ARE LOOKING IN IPHONE REVENUE DOWN JUST 2%. IF THE STUFF THAT IS HAPPENING IN CHINA CONTINUES, THEN THAT NUMBER COULD GO DOWN. I THINK THAT IS WHERE A LITTLE BIT OF THE RISK IS IN TERMS OF FORWARD ESTIMATES FOR APPLE AND THAT IS GOING TO BE THE BIGGEST THING THAT WE FOLLOW IS WHAT IS THE COMPANY GOING TO SAY ABOUT THE RECEPTION OF THE PHONE FOR THE NEXT QUARTER? CAROLINE: MAY2, LOVE THAT YOU PUSH US FORWARD TO THAT AND THE EARNINGS AFTER THE BELL. WE APPRECIATE HIS EXPERTISE. COMING UP, DISCUSSING WHAT TO
EXPECT IN THE EARNINGS COMING EVEN SOONER. AFTER THE BELL THIS AFTERNOON. TESLA, OF COURSE. BRINGING BACK ELON BINGO. >> I'VE NEVER BEEN MORE EXCITED TO LOOK AT SHARES.
TEXAS INSTRUMENTS. REMEMBER, THIS IS A CHIP-MAKER THAT DOES ALL THE KIND OF NOT GLAMOROUS ANALOG SEMICONDUCTORS ACROSS ALL KINDS OF MARKETS AND INDUSTRY. TEXAS INSTRUMENTS HIGHER BY 1.4, 1.5%, SOMETHING LIKE THAT. I DON'T KNOW, RESULTS, OK. KIND OF A PREVIEW. ♪ ED: QUICK NEWS STORY, ELON MUSK'S SOCIAL PLATFORM X IS LAUNCHING A TV APP PUSHING DEEPER INTO VIDEO.
HE DIDN'T CONFIRM A DATE FOR THE RELEASE BUT SAID IT WOULD BE "COMING SOON TO MOST SMART TV'S." THE COMPANY ALSO TALKED ABOUT THE NEED TO CANCEL VIDEO FROM SMARTPHONES TO BIGGER TV SCREENS , A MOVE THAT OF COURSE GOOGLE AND AMAZON HAVE MADE IN RECENT MONTHS AS WELL. CAROLINE: LET'S TAKE ON ALL THINGS ELON MUSK FOR A MOMENT. IT IS TIME FOR TESLA EARNINGS BINGO CARD GAME. AND HERE WITH US FOR MORE, MAX, DOING IT AGAIN.
THEY DID IT IN THE PREVIOUS EARNINGS AND THEY WERE ALL SORTS OF FUN THINGS THAT YOU HAVE TO SHOUT BINGO WHETHER HE IS SAYING UNION, WHETHER HE SANG TESLA IS AN AI COMPANY. THIS TIME I AM PRETTY SURE ROBOTAXI IS GOING TO BE ONE OF THE KEYWORDS. >> ROBOTAXI IS THERE. WE GOT A FEW OTHERS. WE'VE GOT HORSE UP THERE, I BELIEVE IT IS IN REFERENCE TO THE FACT THAT ELON SAID OWNING A NON-ROBOTAXI WOULD BE LIKE OWNING A HORSE IN 15 YEARS. WE WILL SEE IF HE SAYS THAT ON THE EARNINGS CALL. OBVIOUSLY THIS IS A HUGE
EARNINGS DAY FOR TESLA, AND A LOT OF DARK NEWS GOING ON THAT WE ARE TRYING TO KEEP IT LIGHT. ED: I THINK WE SHOULD BE HONEST WITH THE AUDIENCE THAT YOU AND I HAVE COME IN FOR A BIT OF STICK ON SOCIAL MEDIA ABOUT SOME OF THE SELECTIONS WE MADE. THAT'S OK. THIS IS SPECIFICS STATUS
EARNINGS CALL. YOU AND I HAVE BEEN TRYING TO GUESS THE LIKELY OUTCOME, THE ROW. YOUR THINKING RIGHT NOW, PLEASE? MAX: YOU GOT TO LOOK AT THE CENTRAL SQUARE, THE FREE SPACE PARADE OF THE BINGO PLAYERS. I THINK THE M LINE GOING DOWN PRETTY PROMISING. YOU GOT INTEREST RATES OBVIOUSLY A HUGE ISSUE. IRAQ, ELON MUSK HAS MENTIONED THE POSSIBILITY OF INTEGRATING IN TESLA CARS, REASONABLY OPTIMISTIC, HE SAYS THAT ALL THE TIME. AND OF COURSE ADVERTISING WHICH
IS BEEN A BIG ISSUE FOR TESLA BECAUSE THEY HAVE THESE DEMAND CHALLENGES, SO THAT IS MY PICK. CAROLINE: YOUR PICK. I MEAN, I WANT TO KNOW HOW CLOSE ANYONE CAME LAST TIME. IT WASN'T AN OUTRIGHT WIN ON SOME OF THE CHOICES. WHICH ONES ARE YOU A LITTLE BIT MORE CONCERNED MIGHT NOT COME UP? MAX: WE GOT PRETTY CLOSE LAST TIME. IN A GOOD BINGO GAME, YOU WANT A LITTLE BIT OF TENSION. I THINK FALLS TO THE WALL, WHICH IS ELON MUSK'S PHRASE FOR HOW THEY ARE APPROACHING ROBOTAXI, I WOULD BE SURPRISED IF THAT APPEARS DURING THIS EARNINGS CALL, ALTHOUGH ELON MUSK LOVES THESE KIND OF EXTREME THE HARD CORE METAPHORS THAT CONVEY JUST HOW HARD HE IS PUSHING, SO YOU NEVER KNOW. ED:
LET'S LOOK AT THE BINGO CARD A FINAL TIME, BUT THERE IS A SERIOUS POINT TO THIS, THAT ACTUALLY INVESTORS HAD A LOT OF QUESTIONS AND THERE IS A LOT OF UNKNOWN. YOU AND I TRIED TO GO OVER THIS ON THE PODCAST THIS AFTERNOON. ROBOTAXI IS AT THE HEART OF IT. I GET THE SENSE THAT MUSK HAS BEEN BUSY FOR A FEW MONTHS. HE HAS COME BACK IN TESLA AND
DECIDED TO FOCUS, HAVING REALIZED THAT THINGS WERE NOT TO HIS LIKING AT THAT COMPANY. YOUR TAKE? MAX: THAT IS CERTAINLY WHAT IS GOING ON. JUST LOOKING AT HIS SOCIAL MEDIA HEINO, YOU CAN SEE HIS ATTENTION HAS BEEN ELSEWHERE. IT IS UNDERSTANDABLE THAT HE WOULD COME BACK OR SORT OF SNAP INTO FOCUS AND SEE A COMPANY THAT IN MANY WAYS SEEMS TO BE IN CRISIS. WE'VE SEEN THE STOCK FALL PRETTY DRAMATICALLY OVER THE FIRST FEW MONTHS OF THE YEAR. THESE HUGE ISSUES WITH INVENTORY PILING UP, QUESTIONED ABOUT DEMAND. AND HE IS LEANING INTO ROBOTAXI
BECAUSE OF COURSE, THAT IS THIS KIND OF HUGE BET WHICH ELON MUSK LIKES THAT COULD POTENTIALLY TURN THIS WHOLE THING AROUND, THAT COULD REALLY SEPARATE TESLA FROM SOME OF THESE OTHER ELECTRIC CARS THAT ARE COMING TO MARKET RIGHT NOW. PEOPLE ARE GETTING EXCITED ABOUT, ALSO GETTING GOOD REVIEWS. ED: FOR MILLIONS OF BLOOMBERG TECHNOLOGY AUDIENCE MEMBERS AROUND THE WORLD, MAKE THE CASE FOR WHY THEY SHOULD FOLLOW US ALONG DURING EARNINGS AND HOW THEY CAN FOLLOW ALONG THIS EVENING. MAX:
YOU CAN FOLLOW ALONG ON THE BLOOMBERG.COM LIVE BLOG, ON THE TERMINAL. ED AND I WILL BE PLAYING THIS GAME LIKE CRAZY ON SOCIAL AND HOPEFULLY OFFERING SOME HALF DECENT COMMENTARY TO HELP YOU PROCESS THIS BECAUSE OF COURSE, THIS IS A HUGE COMPANY, A BIG ISSUE. ONE OF THE LARGEST COMPANIES IN THE WORLD BY MARKET CAP AND WHERE ELON MUSK GOES FROM HERE IS GOING TO AFFECT US ALL, SO WE WILL BE PAYING ATTENTION TO THAT AS WELL. CAROLINE: SHARE PRICES UNDER PRESSURE TO SAY THE VERY LEAST THIS YEAR.
IMPORTANT FOR THOSE INVESTORS. MAKING LIGHT OF WHAT WOULD BE A VERY SERIOUS EARNINGS CALL. THE ELON-ING PODCAST DROP LITTER TODAY. MEANWHILE, SOME BREAKING NEWS FOR GOING TIKTOK. THIS IS ABOUT THE E.U.'S FOCUS ON TIKTOK. THEY HAD ISSUED TIKTOK 24 HOUR
TO SEND OVER RISK ASSESSMENT FOR THE NEW APP WHICH HAD ISSUED IN SPAIN AND FRANCE. WE UNDERSTAND THAT BYTEDANCE SAYS IT HAS SENT TIKTOK RISK ASSESSMENT REPORT TO THE E.U., ALL OF THIS IS HIGHLIGHTING THE ONGOING REGULATORY FOCUS FOR THIS PARTICULAR SOCIAL MEDIA COMPANY THAT OPENED A NEW PROBE ON MONDAY, BASICALLY THREATENING FINES OF UP TO 1% TOTAL ANNUAL INCOME IF THEY DIDN'T GIVE A PARTICULAR RISK ASSESSMENT FOR TIKTOK. THEY SAY POTENTIALLY VIOLATED
THE NEW CONTENT LAW WHEN IT WAS LAUNCHED OVERALL. REMEMBER, THIS IS KIND OF LIKE A LESS HEAVY FROM THE MEMORY PERSPECTIVE VERSION OF TIKTOK BUT ALSO IT PAYS TO PLAY AND THEIR AIR -- ARSON ADDICTION WORRIES. SO ALL EYES ON TIKTOK LATER TODAY IN THE UNITED STATES AS WELL. THAT ALL-IMPORTANT DISCUSSION IN THE SENATE. BUT FOR NOW, THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. ED: DON'T FORGET TO RECAP ON THE PODCAST. I KNOW WE ARE VERY
EXCITED THAT THE MEGA CAP NAMES AND TESLA, BUT SPOTIFY, MY GOODNESS, WHAT A GREAT REPORT OUT OF NEW YORK CITY. WE ARE PUBLISHING THE POT TO APPLE, SPOTIFY, AND OF COURSE, ALL OF THE BLOOMBERG PLATFORMS.
2024-04-25 23:53
