Tesla Under Pressure, Big Tech Bolsters S&P 500 | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE, IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY" WITH CAROLINE HYDE AND ED LUDLOW. ♪ CAROLINE: LIVE FROM NEW YORK, THIS IS "BLOOMBERG TECHNOLOGY." TRADE TENSIONS RAN HIGHER AS THE U.S. AND CHINA ACCUSED ONE ANOTHER
VIOLATING RECENT AGREEMENTS. WE BRING YOU THE TECH IMPACTED BIG TECH STOCKS HAVE BEEN BACK IN THE DRIVER'S SEAT, OUTPERFORMING THE S&P 500 FOR 8 CONSECUTIVE WEEKS. BUT TESLA IS UNDER PRESSURE COME WITH SALES FALLING AGGRESSIVELY IN FRANCE TO A THREE-YEARLOW. CAN MUSK'S RETURN FROM DOGE TURN THAT AROUND? WE WERE IN RISK AVERSION MODE AND NOW WE TREAD BACK WATER TO FLAT. THEY WAS A STELLAR MONTH. S&P 500 HAD ONE OF ITS BEST MAYS IN YEARS.
WE TRY TO SHAKE OFF ANXIETY AROUND TRADE TENSIONS AND WE GET A DOSE OF MANUFACTURING REALITY IS MANUFACTURING NUMBERS COME IN WEEK. THE NASDAQ GOLDEN DRAGON LOOKING AT SOME OF THE TECH GIANTS IN CHINA. THAT RECOVERS UP .1%. TESLA HAS BEEN OFF TODAY MORE
BROADLY. WE WILL KEEP AN EYE ON SALES IN FRANCE. BYD, WE WILL BRING YOU WHAT BYD SHARES HAVE BEEN DOING. DEPOSITORY RECEIPTS HAVE BEEN TRADING FLAT. UP .2%. LOWER IN CHINESE TRADING. CRITICISM FROM THE GOVERNMENT ITSELF AND GOVERNMENT RELATED ENTITIES.
FOCUSING MORE BROADLY ON CHINA, NOT JUST THE EV SECTOR CAN WE LOOK AT WHAT IS HAPPENING WITH THE GOLDEN DRAGON INDEX. THE PAST THREE DAYS IT HAS BEEN FALLING COME LET'S CALL IT A PLUMMET. MORE PAIN COULD BE IN STORE CHINA ISSUES ITS OWN CLAIMS THAT THE U.S.
HAS BREACHED A RECENT DEAL ITSELF. THE TENTATIVE AGREEMENTS OF SWITZERLAND ARE UNWINDING THEMSELVES SOMEHOW. >> THEY REALLY ARE. WE ARE SEEING THIS DÉTENTE IN
GENEVA A FEW WEEKS AGO RAPIDLY FADE AWAY. ON FRIDAY WE SAW PRESIDENT DONALD TRUMP ACCUSED BEIJING OF VIOLATING THE SPIRIT OF THE UNDERSTANDING WITHOUT OFFERING TOO MANY SPECIFICS. HIS TRADE ADVISOR JAMIESON GREER HELPED FILL IN THE BLANKS. U.S.
CONCERNS SEEM TO CENTER ON WHAT THEY SEE HAS BEIJING'S FAILURE TO LIFT BARRIERS ON EXPORTS OF RARE EARTH MINERALS PER WHATEVER WAS DISCUSSED IN SWITZERLAND. ON THE UPSIDE WE ARE SEEING CHINA COME BACK VERY STRONG TODAY, ACCUSING THE U.S. OF VIOLATING ITS PROMISES UNDER THE AGREEMENT WITH THE STEPS. WE SAW THAT WITH AMERICAN MOVE TO UNVEIL NEW GUIDELINES THAT ARE COMING ON AI SHOULD EXPORT CONTROLS.
THAT INCLUDED A WARNING TO U.S. ALLIES AGAINST USING HUAWEI'S CHIP, A CHALLENGE TO NVIDIA. U.S. HAS MOVED TO RESTRICT EXPORTS OF SALES OF CHIP DESIGN SOFTWARE TO CHINA A BIG DEAL FOR CHINA'S OWN AI AND TECH AMBITIONS. THE ICING ON THE CAKE, THE REVOCATION OF CHINESE STUDENT VISAS, ALL OF THESE IN CHINESE BILL OF GOODS. THIS RAISES QUESTIONS ABOUT WHETHER SHE SHOULD BRING IN DONALD TRUMP WILL ACTUALLY SPEAK BY PHONE -- WHETHER XI JINPING AND DONALD TRUMP WILL SPEAK BY PHONE. CAROLINE: WHAT IS NOTABLE IS THAT THE THREE THAT YOU OUTLINED ARE COMPLETELY TECH-FOCUSED.
IS IT GOING TO BE TECHNOLOGY THAT REMAINS THE EYE OF THE STORM WITH THIS TIT-FOR-TAT? MICHAEL: EITHER THE EYE OF THE STORM OR THE THING DRIVING THE DIRECTION OF THE STORM. THIS COMES ON TOP OF YEARS OF ESCALATING RESTRICTIONS ON EXPORTS TO CHINA IMPOSED BY THE U.S. AND ALSO TWISTING ALLIES' ARMS TO TAKE PART IN THOSE AS WELL. THIS IS NOT JUST SEMICONDUCTOR EXPORTS, IT IS SALES OF CHIPMAKING MACHINERY. ALL OF THIS IS DESIGNED TO CURB CHINA'S ADMISSIONS IN AREAS LIKE ARTIFICIAL INTELLIGENCE. THIS IS STARTING TO TAKE A TOLL
POLITICALLY BETWEEN WASHINGTON AND BEIJING. WE ARE SEEING TECH EMERGE AS THIS FLASHPOINT. IT COULD BE WHAT UNRAVELS WHATEVER UNDERSTANDING MAY HAVE EMERGED IN GENEVA. THERE IS A LOT OF TIME BEFORE THE 90-DAY PAUSE EXPIRES. THE TWO SIDES COULD FIND A WAY BACK TO THE BARGAINING TABLE AND MAYBE HAVE THE CALL BETWEEN THE LEADERS. THE DIRECTION OF TRAVEL IS NOT HEADING IN THAT WAY, AT LEAST FROM WHAT WE ARE SEEING.
CAROLINE: MICHAEL SHEPPARD, THANK YOU. LET'S STICK WITH HOW MARKETS ARE REACTING BUT MORE BROADLY HOW THEY SHOULD THINK ABOUT THE STREET UNCERTAINTY. AN EXPERT IS A MANAGING DIRECTOR AT GARNEAU GLOBAL.
WE TURN TO YOUR YEARS OF ADVISING THE GOVERNMENT, THE CIA , AND MORE BROADLY THE FIELD OF ENTERPRISE. HOW BAD IS THIS LOOKING? HOW MUCH ARE WE RETURNING TO ESCALATION? >> HI, CAROLYN CAN AGREE TO BE ON WITH YOU, AND I AGREE WITH MICHAEL SHEPPARD THAT THE HONEYMOON OUT OF GENEVA A FEW WEEKS AGO IS SHATTERED. WE ARE BACK IN THIS CYCLE OF ESCALATION BETWEEN THE U.S. AND CHINA.
I AGREE WITH YOU THAT AT THE CENTER OF THIS IS TECHNOLOGY. WHAT IS INTERESTING ABOUT CHINA'S VERY STRENUOUS REACTION TO THE U.S. EXPORT CONTROLS ON THE WHITE -- PAUL WHITE ASSUMPTION IS THE PROPAGANDA APPARATUS HAS BEEN ARGUING THAT THE U.S. EXPORT CONTROLS ARE INEFFECTIVE AND CHINA CAN WORK AROUND THEM. THE LEVEL OF EMPHASIS THEY ARE PUTTING ON THIS, THE VOLUME AT WHICH THEY ARE SCREAMING FOR THESE THINGS TO BE REMOVED INDICATES JUST HOW EFFECTIVE AND PAINFUL THEY ARE ON CHINA. WE ARE GOING TO BE WATCHING TO SEE HOW THE U.S. REACTS GOING FORWARD.
CHINA IS TRYING TO PRESS THE U.S. VERY HARD TO MAKE MORE CONCESSIONS. AFTER GENEVA, THE TARIFFS CAME DOWN SIGNIFICANTLY. AT THE HEART OF THE TENSIONS WERE CHINA'S EXPORT CONTROL ON RARE EARTHS AND THE U.S. EXPORT CONTROL ON AI CHIPS AND RELATED TOOLING. CAROLINE: LET'S GO TO AI CHIPS BEFORE RARE EARTHS.
THERE IS NOT ONLY THE CRITICISM FROM CHINA, BUT SOME U.S. COMPANIES -- I THINK OF WHAT JENSEN HUANG WAS TELLING ED LUDLOW LAST WEEK, HOW MUCH WE ARE FORCING CHINA TO INNOVATE AND HOW HE LONGS TO BE ABLE TO ACCESS THE MARKET. DO YOU EVER SEE THAT HAPPENING? LIZA: I THINK IT IS ABOUT THE SCALE OF COMPUTE THAT IS NEEDED. CHINA CAN FIND WORK THROUGH SMUGGLING AND MAKING ITS OWN CHIPS. IT IS ALL ABOUT SCALING.
AS YOU TALK ABOUT UNDER SHOW, BEING ABLE TO MAKE ENOUGH CHIPS TO SUPPLY THE RAPIDLY ESCALATING DEMANDS OF COMPUTE IN THE AGE OF AI AT ISSUE. THAT IS WHERE THE U.S. HAS A VERY LARGE LEADER JUST BEING ABLE TO SCALE UP, SO IF CHINA IS ABLE TO EXTRACT ANY ADDITIONAL CONCESSIONS FROM THE U.S. AND GET MORE CHIPS LEGALLY, THAT WILL HELP THEM SHRINK THE GAP FASTER. IF THE U.S. KEEPS THESE EXPORT CONTROLS IN
PLACE AND ENFORCES THEM STRICTLY AND GETS ALLIES AND PARTNERS ON BOARD WITH SOME OF THE ASPECTS WERE COUNTRIES LIKE JAPAN AND THE NETHERLANDS AND GERMANY ARE STRONG, THE GAP BETWEEN THE U.S. AND CHINA IN COMPUTE STANDS TO LENGTHEN THE COMING MONTHS AND YEARS. CAROLINE: BUT BOTH SIDES HAVE CHIPS ON THE TABLE THAT THEY CAN PLAY HARD. I WAS AT THE REAGAN NATIONAL ECONOMIC FORUM ON FRIDAY WHERE THERE WAS A LOT OF ANXIETY JUST HOW CONFIDENT CHINESE LEADERSHIP IS AT THE MOMENT, THAT THEY CAN FIGHT BACK. WHAT ABOUT THE RARE EARTHS SIGNALS? HOW MUCH PAIN COULD THAT LEVY ON U.S. INDUSTRY ITSELF AS WELL? LIZA:
WE KNOW THE AUTO MANUFACTURERS AND DEFENSE MANUFACTURERS THEY CAME CRYING TO THE U.S. GOVERNMENT BEFORE THE GENEVA TALKS AND SAID THAT THESE THINGS ARE STARTING TO IMPOSE PAIN AND STARTING TO IMPOSE WORK STOPPAGES. THAT IS SOMETHING THAT IT IS A GRAY RHINO. U.S. NATIONAL SECURITY ESTABLISHED HAS KNOWN ABOUT THIS DEPENDENCY ON CHINA FOR RARE EARTHS PROCESSING FOR YEARS BUT THEY HAVE NOT COME UP WITH A SOLUTION AT SCALE. WHAT IS INTERESTING OVER THE LAST MONTH IS THAT CHINA HAS BROKEN THE GLASS ON USING THE SCORES OF INSTRUMENT.
IT IS NOW RATCHETING UP PRESSURE . XI JINPING HAS AN APPETITE FOR LEVERAGE. NOW THAT HE KNOWS HE HAS THE LEVERAGE OVER THE U.S., WE WILL SEE HIM PUSHING AGAIN AND AGAIN TO RECYCLE THE LEVERAGE AND EXTRACT MORE CONCESSIONS FROM THE U.S. RATHER THAN BENDING OVER AND DOING CHINA MORE CONCESSIONS OVER THE LAST COUPLE OF WEEKS, YOU HAVE SEEN THEM DOUBLING DOWN WITH THIS EMPOWERED COMMERCE DEPARTMENT STRENGTHENING AND BROADENING THE EXPORT CONTROLS. CAROLINE: YOU DON'T EXPECT TO THE U.S. TO BLINK IN THIS MOMENT.
WHAT ADVICE DO YOU GIVE TO THE PRIVATE SECTOR RIGHT NOW AS TO HOW TOUGH THIS COULD GET TO ACCESS RARE, AND INDEED THE FLIPSIDE IF YOU ARE A CHINESE COMPANY, ACCESS TO U.S. CHIPS. LIZA: THE PRIVATE SECTOR NEEDS TO REMEMBER THIS IS NOT JUST JUST A COMMON POSITION ABOUT TARIFFS AND TRADE. PERHAPS EVEN MORE IMPORTANT IS TO WATCH THE GEOPOLITICAL TENSIONS THAT ARE UNFOLDING IN THE INDO PACIFIC AROUND TAIWAN IN THE SOUTH CHINA SEA. THE SECRETARY OF DEFENSE PETE HEGSETH ON SATURDAY AT THE SHANGRI-LA FORUM WAS WARNING THAT THE TAIWAN CRISIS COULD BE IMMINENT. WE KNOW THAT CHINA FREQUENTLY HAS MILITARY DRILLS, THESE PRACTICE EXERCISES AROUND TAIWAN AND IN THE SOUTH CHINA SEA. IT HAS HAD THE HABIT LATELY OF NOT ANNOUNCING THESE IN ADVANCE.
IT IS NOT GIVING MARKETS A HEADS-UP IT IS GOING TO HAPPEN. IT WANTS TO PRESERVE AMBIGUITY. IF OUTSIDE OBSERVERS AREN'T SURE IF THIS IS JUST A DRILL OR SOMETHING MORE, AN ACTUAL REHEARSAL FOR SOMETHING LIKE A BLOCKADE, IS VERY WORRISOME BECAUSE IT SHRINKS THE WINDOW OF WARNING. THAT IS SOMETHING WE'RE WATCHING VERY CLOSELY, THE LINKS BETWEEN THE TECHNOLOGY EXPORT CONTROL, TARIFFS, AND SOME KIND OF SUPPLY CHAIN DISRUPTING CRISIS AROUND TAIWAN THAT COULD PREVENT THE CHIPS FROM GETTING OUT OF TAIWAN FOR A COUPLE WEEKS OR LONGER. CAROLINE: THAT IS CRUCIAL TO OUR AUDIENCE, SO THANKS FOR MAKING THAT LINK. LIZA TOBIN, GREAT TO HAVE TIME WITH YOU.
COMING UP, LET'S TALK ABOUT CHIPS MORE WITH BROADCOM'S RESULTS. AI DEMANDED STILL BOOMING. CAROLINE: LET'S TALK ABOUT HOW THE SAME TECH GIANTSS THAT CONTRIBUTE TO THE S&P 500'S DECLINE IN APRIL ARE DRIVING THE RECOVERING U.S. EQUITIES COULD JUST TAKE NVIDIA. THEY PUT A BOW ON EARNINGS SEASON BY DELIVERING A STRONG LOOK FOR REVENUE. THIS AS RESPECT EARNINGS FROM BROADCOM THIS WEEK. YOU SEE THE SHARES ARE TRADING HIGHER. WRITING LESS DELEGATE HAS BEEN WRITING ABOUT HOW THE MAGNIFICENT SEVEN IN PARTICULAR HAVE BOUNCED BACK WITH PHENOMENAL RECOVERY NUMBERS.
RYAN: THANKS FOR HAVING ME. THIS EARNINGS SEASON WAS A REAL TEST FOR TECH AND GIVEN HOW UNCERTAIN THE BACKDROP BECOME, GIVEN TARIFFS, GIVEN ALL SORTS OF GEOPOLITICAL TENSIONS AND AI SPENDING. BROADLY SPEAKING THIS GROUP PASSED WITH FLYING COLORS. THE NOTABLE EXCEPTION WAS
APPLE, WHICH IS DEALING WITH A NUMBER OF ITS IDIOSYNCRATIC ISSUES. THE MAJOR COMPANIES LIKE MICROSOFT, NVIDIA, META, ALPHABET, QUITE STRONG ACROSS THE BOARD, SHOWING POSITIVE TRENDS, AND THEY HAVE ALLOWED OF THE MARKET TO REALLY RECOVER OF THE LOW WE SAW EARLY IN APRIL. CAROLINE: INTERESTING THAT WE ARE NOT BACK TO OUR RECORD HIGHS. WE ARE INCHING IN ON THEM. THE S&P 500, THE VALUATION STORY IS SOUNDING DICEY WHEN YOU ARE LOOKING AT MAGNIFICENT SEVEN NAMES. RYAN: THESE NAMES ARE PRETTY CHEAP BY A LOT OF METRICS.
THEY HAVE COME BACK QUITE DRAMATICALLY. NVIDIA IS UP 45% OR SO SINCE THAT LOW. THESE ARE REMARKABLE GAINS THAT HAVE COME BACK IN THE VALUATION.
THE COUNTERING ARGUMENT THAT THIS IS IF YOU LOOK AT SOMETHING LIKE THE PEG RATIO, THEY ARE TRADING AT FAIRLY MODEST RATIOS ON THE METRIC. VALUATIONS HAVE COME BACK SOME, BUT THE GROWTH THAT WAS JUST AFFIRMED IN THE MOST RECENT REPORTS ALSO PRETTY POSITIVE. CAROLINE: WE ARE LOOKING AT THE MOMENT OF HOW PRICEY THEY ARE FROM A PRICE TO FORWARD-LOOKING EARNINGS PERSPECTIVE. RYAN VLASTELICA, GREAT TO HAVE YOU ON IS ALWAYS GOOD LET'S GET MORE OF A TAKE HERE, PARTICULARLY ON AI DEMAND.
VP IN CEDAR ANALYST AT VF OUR RESEARCH. WE SAW NUMBERS LOOKING GOOD. WHAT ABOUT BROADCOM? ARE WE GOING TO GET AI OPTIMISM THERE? >> THANKS FOR HAVING ME, CAROLINE. TO YOUR POINT, IT IS GOING TO BE VERY STRONG.
TOPLINE GROWTH OF 20% FOR THE APRIL QUARTER. WHEN YOU LOOK OVERALL, THE TRENDS WE HAVE SEEN OVER THE LAST COUPLE WEEKS, OR SINCE Q1 EARNINGS SEASON, STARTING WITH ALPHABET AND MICROSOFT UP UNTIL NVIDIA LAST WEEK, THE TREND ON THE COMPUTER SIDE OF THINGS IS MUCH STRONGER THAN ANYBODY ANTICIPATED. REALLY SOMETHING THAT JENSEN HUANG LAST YEAR, LAST WEEK REALLY POUNDED THE TABLE ON. WHEN YOU THINK ABOUT THE DRIVERS SPECIFICALLY FOR THE AI SEMI NAMES OVER THE NEXT COUPLE YEARS, IT REALLY IS GOING TO BE TRIED TO COMPUTE IN THE HIGHER DEMAND FOR COMPUTE IS GOING TO DRIVE HIGHER CAPITAL SPENDING PLANS WHICH IS WHAT WE SAW DURING Q1 EARNINGS SEASON. THE TRENDS REMAIN INTACT FOR BROADCOM SPECIFICALLY. THEY HAVE GOT ABOUT A 60-40
SPLIT IN SEMIS VERSUS SOFTWARE. THAT WILL CONTINUE TO DRIVE THE DEMAND, BUT SOFTWARE SHOULD NOT BE IGNORED BECAUSE OF PROFITABILITY AND GROWTH CONTINUES TO BE GOOD. CAROLINE: WE ARE EXPECTED STRONG THINGS FROM BROADCOM YOUR TOP SEMICONDUCTOR NAMES ARE NVIDIA, ANDY. I'M LOOKING AT HOW THE NAMES WERE DRIVING THE S&P 500 RECOVERY. A GREAT TRUCK SHOWS THAT NVIDIA
MAKES UP 12% OF THE S&P 500 REBOUND SINCE APRIL, BUT SWIFTLY AFTER THEM WAS MICROSOFT THAT YOU NAMED AS BEING A WINNER. BROADCOM, SOME 5%. IS THE VALUATION GETTING TO RICH EVEN THE AMOUNT OF GEOPOLITICAL ANXIETY WHICH WE JUST TALKED ABOUT WITH LIZA TOBIN? ANGELO: AS FAR AS THE VALUATION IS CONCERNED IT IS NOT AS ATTRACTIVE AS IT WAS 4 TO 6 WEEKS AGO. THE VALUATIONS, BASEMENT LEVEL VALUES -- WE WERE TALKING BUT NVIDIA AT ONE POINT TRADING 18 TIMES THE 2026 ESTIMATE.
THEY ARE CLOSER TO ABOUT 24, 25 TIMES ON 2026 EXPECTATIONS. VISIBILITY IS IMPROVING. IT HAS IMPROVED WEATHER ON THE TRADE SIDE OF THINGS, IMPROVING COMMENTARY ON TRADE, OR JUST OF THE REITERATION IN TERMS OF CAPEX FOR HYPERSCALERS.
AS FAR AS THE JEW POLITICAL SIDE, THERE ARE A LOT OF MOVING PARTS THE NEXT COUPLE WEEKS. WE WANT TO HEAR ABOUT THE U.S.-CHINA DISCUSSIONS, BUT AS FAR AS SEMIS ARE CONCERNED, THERE IS A SEMICONDUCTOR INVESTIGATION ONGOING RIGHT NOW. WE EXPECT MORE CLARITY IN TERMS OF WHAT THAT IS GOING TO LOOK LIKE AS FAR AS TARIFFS ARE CONCERNED OVER THE NEXT TWO MONTHS OR SO. IT IS WAIT AND SEE MODE, BUT OUR VIEW IS YOU ARE GOING TO SEE A PERMANENT TARIFF ON THE SEMICONDUCTOR INDUSTRY WHEN THAT GETS UNVEILED. OUR BASE CASE IS A 25% TARIFF. CAROLINE:
WHAT ABOUT THE SMARTPHONE INDUSTRY? APPLE HAS CONTRIBUTED TO THE REPRIEVE IN THE S&P 500 AND IS ONE OF YOUR TOP NAMES FOR HARD-WORKING BUT YOU ARE WONDERING WHETHER IT WILL GET INDIVIDUAL TARIFFS OF 25%. NOT TO MENTION SAMSUNG GETS THE SAME. ANGELO: WE ARE NOT LOOKING FOR AN INDIVIDUAL TARIFF ON THAT SIDE OF THINGS, BUT OUR VIEW IS THAT THEY FALL UNDER THE NATIONAL SECURITY UMBRELLA OF THE SEMICONDUCTOR INVESTIGATION, SIMILAR TO OTHER HARDWARE NAMES THAT ARE EXEMPT FROM A LOT OF THE TARIFFS. THAT SAID, IF WE ARE ASSUMING SOMETHING ALONG THE LINES OF 25% BASED TARIFF, THAT WOULD IMPLY THAT APPLE HAS TO INCREASE THE PRICE OF ITS IPHONE 17 THIS FALL. OUR VIEWS ALONG THE LINES OF $50 OR SO. WE HAVE TO WAIT AND SEE TO SEE HOW ALL THIS STUFF REALLY PLAYS ITSELF OUT ON THE GEOPOLITICAL SIDE. OUR VIEW IS THERE IS GOING TO
BE SOME SORT OF PERMANENT TARIFF THAT GOES INTO EFFECT FOR THE HARDWARE COMPANIES AND SPECIFICALLY APPLE. APPLE WE THINK IS BEST POSITIONED TO OFFSET SOME OF THE HIGHER TARIFFS BECAUSE OF THE BRAND RECOGNITION AND BECAUSE OF THEIR PRICING POWER. CAROLINE: IF AN INVESTOR DOESN'T HAVE THE EXPOSURE THEY WOULD LIKE IN THESE NAMES, SHOULD THEY BUY AT THIS POINT? ANGELO: I THINK THAT'S A GOOD QUESTION. WE LOOK AT IT RIGHT NOW IN THE
SENSE THAT WE ARE LOOKING MORE FOR NEAR-TERM DIGESTION PERIOD. THE DANGEROUS THING IS THAT YOU DON'T KNOW WHAT YOU WILL GET ON A DATE--- DAY-IN, DA-OUT BASIS BECAUSE THE GEOPOLITICAL ENVIRONMENT. OUR VIEW IS YOU WANT THESE SEMI ORIENTED NAMES BECAUSE THEY WILL DRIVE THE EARNINGS POTENTIAL FOR THE TECH SECTOR OVER THE NEXT TWO TO THREE YEARS, SPECIFICALLY NVIDIA AND BROADCOM, AS WELL AS SMALLER NAMES. NVIDIA BROAD CA -- NVIDIA AND BROADCOM WOULD BE TWO TOP NAMES WITH THE BIGGEST VISIBILITY. WITH THE NEGATIVE HEADWINDS WITH THE SEMICONDUCTOR INVESTIGATION OR SOMETHING ON THE TRADE SIDE OF THINGS, ULTIMATELY WE THINK THIS WORKS ITSELF OUT AND THE EARNINGS POTENTIAL IS SO GREAT THAT TWO TO THREE YEARS DOWN THE ROAD THESE SLOTS SHOULD BE SIGNIFICANTLY HIGHER THAN WHERE THEY ARE NOW. CAROLINE: WE GET THE EARNINGS FROM
BROADCOM ON THURSDAY AFTER THE BELL. SAMSUNG IS TEAMING UP WITH PERPLEXITY AI TO BEEF UP ARTIFICIAL INTELLIGENCE OFFERINGS. CAROLINE: SAMSUNG, IT'S NEARING A WIDE-RANGING DEAL TO INVEST IN PERPLEXITY AI AND PUT SEARCH TECHNOLOGY FROM THE START UP AT THE VERY FOREFRONT OF ITS DEVICES. THAT IS ACCORDING TO PEOPLE FAMILIAR. THE COMPANIES ARE IN TALKS TO PRELOAD THE PERPLEXITY APP ON UPCOMING SAMSUNG DEVICES.
WE KNEW THAT SAMSUNG HAD ONGOING CONVERSATIONS. HOW DEEPLY INTERTWINED WILL THEY BECOME? >> IT'S A LITTLE MORE EXPENSIVE THAN MOTOROLA. WITH SAMSUNG IT IS INTEGRATED INTO ITS SYSTEM PRODUCT AND BROWSER AND PRELOADING ON SAMSUNG DEVICES GENERALLY. IF YOU ARE GOOGLE, YOU ARE SETTING UP A LITTLE BIT STRAIGHTER RIGHT NOW. THERE'S A DIFFERENCE BETWEEN BEING PRELOADED AND THE DEFAULT SERVICE, WHICH IS WHAT GOOGLE PAID FOR FOUR YEARS, EXPENSIVELY. THIS IS A STEP IN THAT DIRECTION, AND GIVEN THE ANTITRUST SCRUTINY ON GOOGLE, I WOULD BE CONCERNED. CAROLINE:
THE DISCUSSION OF WHAT WOULD BE THE POLICIES TO APPEASE THE JUDGE, THAT WRAPPED UP ON FRIDAY. ANALYSTS ARE DEEPLY CONCERNED ABOUT WHAT ALL OF THIS MEANS FOR ALPHABET. HOW MUCH DOES THIS DEPEND ON PERPLEXITY GETTING SOME MONEY FROM SAMSUNG? SETH: THAT IS PART OF THE BROADER TRIAL.
PERPLEXITY IS CLOSE TO RAISING $500 MILLION. SAMSUNG COULD BE ONE OF THE LARGER INVESTORS IN THAT DEAL AND THAT STRIKES AT THE MUCH LARGER TYPE BETWEEN THESE COMPANIES. CAROLINE: HOW DOES THAT STACK UP? WE HAVE BECOME SO NUMB TO THESE FIGURES. SETH: IT IS ONE OF THE LARGEST AI PLAYERS RIGHT NOW. NOT ONLY ARE THEY GOING UP AGAINST GOOGLE, BUT THEY ARE GOING AGAINST AI AND OTHERS. BEING MORE DEEPLY INTEGRATED INTO DEVICES MILLIONS USE.
CAROLINE: IT IS ONE OF THE FIRST TO OFFER YOU WHERE THE INFORMATION IS COMING FROM. BUT THEY HAVE HAD COPYRIGHT ISSUES AS WELL. SETH: THAT'S TRUE. PERPLEXITY'S MAIN THING IS THAT
THEY HAVE GREAT DESIGN. THEY KNOW HOW TO PACKAGE IT IN A COMPELLING WAY AND IT SEEMS TO BE DRAWING FANS NOT JUST FROM CONSUMERS BUT FROM HARDWARE COMPANIES. CAROLINE: HOW SOON WILL THIS BE ANNOUNCED? SETH: AS SOON AS THIS YEAR. CAROLINE: WE APPRECIATE IT. TESLA, ITS SALES FALL TO AN ALMOST THREE-YEAR LOW.
HOW MUCH CAN MUSK'S RETURN FROM DOGE STEADY THE SHIP? THIS IS "BLOOMBERG TECHNOLOGY." ♪ ♪ CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." I’M CAROLINE HYDE. TODAY WE BOUNCE OFF OUR LOWS BUT THE ANXIETY REMAINS, WHAT ABOUT THE PULLING BACK FROM CHINA AND THE U.S.
IN TERMS OF THOSE TENTATIVE AGREEMENTS MADE IN SWITZERLAND. THE PROGRESS IS ON THE LINE AND MANY ARE WORRYING. TO DIG INTO SOME OF THE NAMES, ONE CHINESE E.V. PLAYER, AND KEEP A EYE ON B.Y.D. UNDER PRESSURE IS THE CHINESE GOVERNMENT HINTING AT B.Y.D., YOU’RE COMPETING TOO HARD IN OUR COUNTRY AND RACING TO THE BOTTOM IN TERMS OF PRICE IN ORDER TO BOOST YOUR NUMBERS.
WILL THEY PULL BACK FROM THAT? TESLA UP 3% AND JUST 700 CARS IN ALL OF FRANCE. THIS COMES AS ELON MUSK OFFICIALLY DEPARTING THE WHITE HOUSE, RUNNING DOGE, AS MANY WOULD SAY. BUT THIS IS QUOTE, MUSIC TO THE EARS OF TESLA SHAREHOLDERS WITH CRUCIAL FEW MONTHS AHEAD. THOSE NUMBERS SHOW WHAT IT MAY MEAN, CAN ELON STEER THIS THE OTHER WAY. OBVIOUSLY THE LEADER IS BACK, TESLA IS MUSK AND MUSIC IS TESLA. IT’S ABOUT GOING TO AUSTIN IN JUNE AND GOING TO THE ROBOTICS FUTURE AND WILL BE THE KEY PART OF THE VALUE OF TESLA HOW WE GOAT TO A $2 TRILLION VALUATION. YOU LOOK AT EUROPE AND U.S.
AND CHINA, I THINK MUSIC WILL START TO TURN THAT AROUND AND THAT’S WHERE INVESTORS ARE STARTING TO FACTOR IN, NOT SAYING WHAT HAPPENED IN THE NEXT MONTH OR TWO BUT A REBOUND IN TECH FOR HALF OF THE YEAR. CAROLINE: STOMACH FOR THE NEAR TERM THE NEW NUMBERS, THE MODEL REFRESH IS NOT COVERING IT AND MORE THE POLITICAL BACKLASH BUT YOU THINK ULTIMATELY THE TECHNOLOGY WILL OUTWEIGH A BRAND ISSUE THEY HAD? >> 90% OF THE FUTURE VALUE IS AUTONOMOUS AND ROBOTICS. IN TERMS OF MODE ROTCY AND A RECOMMITTEED MUSIC AND LOOKING TO THE FUTURE, NVIDIA, AND WHO IS DRIVING THE SOFTWARE, IT’S PA LENTIER. CAROLINE: THERE IS A DIFFERENCE IN THE ECONOMY.
AND WEMU IS IN OTHER CITIES, $200,000 CARS. WHEN I LOOK OUT IN THE COMING YEARS, YOU LOOK, THIS WILL BE DOMINATED BY TESLA IN TERMS OF CYBERCAPS AND STARTS THE NEXT FEW WEEKS IN AUSTIN BUT NO ONE MATCHES THE GLOBAL SCALE AND SCOPE OF MUSK AND TESLA. CAROLINE: WHAT MILESTONES IN AUSTIN DO THEY NEED TO MEET? ED LUDLOW WITH THE GREAT REPORTING THAT JUNE 12 WILL BE THE DATE THEY’RE ANTICIPATING FOR IT TO ALREADY MAKE ACTIONABLE WHAT THEY’VE BEEN TRIALING ON THE ROADS THUS FAR.
WHAT DO THEY NEED TO MEET AND HOW DO THEY NEED TO SHOW OFF AND THE TECHNOLOGY TO WORK? DAN: JUST THE INTERVENTIONS AND TOGETHER IT’S READY FOR PRIMETIME. THIS IS JUST THE BEGINNING OF ULTIMATELY GOING TO BE 15, 20, 25 CITIES OVER THE NEXT YEAR. AND I THINK THIS IS JUST REALLY KIND OF LAYING THE GROUNDWORK FROM A TECHNOLOGY PERSPECTIVE SHOWING WHERE TESLA IS GOING TO GET TO AND WHAT I BELIEVE -- LOOK, WEMO WILL BE SUCCESSFUL AND WILL BE A KEY PLAYER BUT IN TERMS OF THE GLOBAL VISION AND WHO WILL DOMINATE, I BELIEVE IT’S TESLA AND OUGHT ON MUST. CAROLINE:
THE CYBERCAB AND TESLA IS ON THE ROAD BECOMING THE AUTONOMOUS VEHICLES AND THEY’RE THE ONES WE DON’T OURSELVES BUT LEND OUT? DAN: NEXT YEAR YOU’LL HAVE 10 MILLION VEHICLES IN TERMS OF TESLAS THAT HAVE BEEN SOLD, DATA DRIVEN BUT I DO BELIEVE CYBERCABS WHEN YOU THINK OF THE AUTONOMOUS PIECE, THAT WILL BE SO IMPORTANT. BUT THEN ALSO IT’S ABOUT F.S.D. F.S.D. PENETRATION CAN GO FROM 15% TO 50%. THEY HAVE TO MARGIN THE SOFTWARE, THE UPLIFT THAT WILL LEAD TO TESLA AND WHY I BELIEVE THEY’RE GOING INTO THEIR BIGGEST CHAPTER OF GROWTH. THAT’S WHY ALSO IT’S SO IMPORTANT THAT MUSK LASER FOCUS ON TESLA AND THOSE DAYS IN THE TRUMP WHITE HOUSE ARE IN THE REARVIEW MIRROR. CAROLINE: YOU SAY HE WILL BE LASER
FOCUSED ON TESLA AND SAYS HE HAS TO REMAIN FOCUSED ON X AND SPACE X AND S.A.I. IS WOVEN IN AT THE MOMENT. DAN: PART OF THE BROADER MUSK ECOSYSTEM BUT THE HEARTS AND LUNGS AND GOLDEN GOOSE IS TESLA AND MUSK RECOGNIZES NOW IS THE TIME, ESPECIALLY GIVEN AUTONOMOUS AND ROBOTICS. CAROLINE: TELL US THE $2 TRILLION VALUATION AND HOW YOU GOT THERE FROM A NUMBERS PERSPECTIVE? DAN: WHEN YOU LOOK AT AUTONOMOUS AND MODEL OUT WHAT MAY BE 20% OF VEHICLES BEING OUGHT ON MUST, YOU’RE LOOKING -- AUTONOMOUS AND YOU LOOK COUNTERARE LOOKING AT $15 EARNINGS AND THE WHOLE MATH OF THE TESLA VALUATION WILL DRAMATICALLY CHANGE AND I BELIEVE FROM AN A.I. PERSPECTIVE, ONE OF THE MOST UNDERVALUED PURE PLAYS IN THE MARKET IS TESLA. OF COURSE, NVIDIA AND ALLEN -- AND P’ALLEN TIER BUT IN THE PHYSICAL A.I. CLAIMS IN TERMS OF ROBOTICS, THEY’LL BE FRONT AND CENTER.
CAROLINE: AT THE HOME IT’S ADDS 1 TRILLION MODEL CAPITALIZATION, HOW QUICKLY DOES THE $2 TRILLION BECOME REALITY? DAN: NEXT 18 MONTHS. CAROLINE: IT WILL DOUBLE IN THAT TIME? DAN: THAT’S OUR VIEW AND COULD BE CONSERVATIVE AS IT ALL PLAYS OUT. BECAUSE AGAIN AND AGAIN, MUSK AND TESLA UNDERESTIMATED. NEXT WEEK, YOU KNOW, WAIT NEXT
WEEK WHEN THIS ACTUALLY, THE DIVISION STARTS, IT WILL KICK OFF, I THINK IT’S A GOLDEN EVE AT TESLA. CAROLINE: YOU’RE THE HIGHEST PRICED TARGET. AND THE PRICE TARGETS GO DOWN TO JP MORGAN AT 115. SO WHAT IS IT OTHERS AREN’T GETTING HERE? IS IT THE SCALE OF THE AMBITION, THE EXECUTION, WHAT IS IT WHEN YOU SIT AROUND THE TABLE WITH OTHER ANALYSTS THEY’RE LIKE NO, DAN, AND YOU’RE LIKE NO, YES. DAN: TO THAT POINT, MAYBE YOU GO BACK OVER THE LAST FIVE, SEVEN, EIGHT YEARS AND THEY’VE UNDERESTIMATED TESLA AND MUSK MOST EVERY TIME. MANY THOUGHT THE CHANCE OF THEM
ACTUALLY COMING OUT WITH AN E.V. WAS UNREALISTIC AND THE CHANCES OF THEM SCALING TO OVER A MILLION VEHICLES, AGAIN AND AGAIN, THEY CONTINUE TO VIEW THIS AS AN AUTOMOBILE COMPANY. IT’S A DISRUPTIVE TECHNOLOGY PLAYER, ONE OF THE BEST IN THE WORLD ALONG WITH NVIDIA AND OF COURSE IS PALANTIER. CAROLINE: WE’RE LOOKING TO THE GLOBAL STORY, DOES IT HAVE TO BE EXECUTED IN U.S. BUT WHAT ABOUT CHINA WHERE YOU
SEE THE LEVEL OF THE PRICE AND WHAT WE SEE FROM B.I.D. INTO AUTONOMOUS. DAN: CHINA IS A KEY MARKET AND 40% OF DELIVERIES COME FROM CHINA TO KEEPUP A SUPPLY PERSPECTIVE AND WHY, TOO, IT’S IMPORTANT MORE AND MORE THAT MUSK DISTANCE HIMSELF FROM TERMS OF THE TRUMP WHITE HOUSE, NOW START TO PLAY THAT 10% POLITICIAN AND 90% C.E.O. WE SEE FROM APPLE. CHINA IS KEY. WE’LL CONTINUE TO SEE A REBOUND IN CHINA AND AUTONOMOUS AND TESLA WILL BE A MAJOR PLAYER ALONG WITH B.I.D. AND OTHERS. CAROLINE: LET’S TALK ROBOTICS BECAUSE I’M HEARING MORE AND MORE HOW IT WILL BE THE NEXT AREA OF KEY GROWTH.
HOW QUICKLY DOES THE OPTIMIST BECOME THE $2 TRILLION DRIVER? DAN: WE’RE NOT FACTORING THAT IN AND SPEAKS TO OUR VIEW AS LIEU AT OPTIMISTS AND HOW IT PLAYS OUT ROBOTICS COULD BE BIGGER THAN AUTONOMOUS. AND WHEN IT COMES TO PHYSICAL A.I., IT’S TESLA AND NVIDIA LEADING THAT.
THE NEXT 18-24 MONTHS IS THE REALITY. THE SCOPE IS SOMETHING TESLA IS A HUGE ADVANTAGE OF AND INVESTORS, WALL STREET MASSIVELY UNDERESTIMATING BUT WILL BE PROVEN WRONG AS IT ALL PLAYS OUT. CAROLINE: HOW MUCH IS THE SUPPLY CHAIN GOING TO BE A BOTTLENECK HERE BECAUSE WE KEEP TALKING TIME AND AGAIN ABOUT THE RARE EARTH CONTROL CHINA HAS. THE FACT TESLA IS SO PREVALENT IN CHINA FROM A SUPPLY PERSPECTIVE, WITH IS THAT A WINNING FORMULA? DAN: THAT’S THE KEY.
HAVING SUCH A BIG PRESENCE AND OF COURSE MUSK HAS VERY GOOD RELATIONSHIP IN BEIJING IN TERMS OF THEIR FOOTPRINT, THAT’S VERY IMPORTANT AND GIVES THEM A HUGE ADVANTAGE AND ALSO I THINK IT SPEAKS TO THE TIMING, ESPECIALLY IN THIS U.S. CHINA NEGOTIATIONS, THE FURTHER AND FURTHER MUSK DISTANCES HIMSELF FROM TRUMP AND THE WHITE HOUSE I THINK IT’S IMPORTANT ESPECIALLY WHEN IT PLAYS TO WHAT HAPPENS IN CHINA. CAROLINE: GOING TO END ON APPLE BECAUSE YOU WERE JUST TALKING ABOUT OTHER COMPANIES OWNING THE SPACE, PALANTIR IN SOFTWARE BUT WHAT ABOUT FROM A FUTURE OF A SUPPLY PERSPECTIVE AND GEOPOLITICAL PERSPECTIVE BECAUSE TIM COOK NEEDS TO BE A LITTLE MORE POLITICIAN, TOO. DAN: NO BETTER C.E.O. THAT CAN NAVIGATE IT. CAROLINE: HE’S NOT DONE WELL SO FAR. DAN:
I DISAGREE BECAUSE HE NAVIGATED TO INDIA WHICH IS A HUGE PART OF THE POKE MOVE AND PUTS HIM IN THE LAP OF THE NEGOTIATING POSITION AND THE CHANCES OF IPHONES COMING TO THE U.S. IS CONTINUING TO BE VIEWED UNREALISTIC, A $3500 IPHONE AND COOK IS ANOTHER ONE, THERE’S AN UNDERSTANDING THEY MIGHT HAVE BEEN LATE TO THE GAME BUT THE CONSUMER A.I. REVOLUTION COMES THROUGH CUPERTINO AND THE WBC IS A NEXT EVENT THAT STARTS THE NEXT CHAPTER. CAROLINE: DAN I’VE.
SOME OF THE BIGGEST PRICE TARGETS OUT THERE FOR TESLA AND APPLE. NICE TO HAVE YOU ON THE SHOW. COMING UP, TECH HAS BECOME A MAJOR ECONOMIC DRIVER FOR NEW YORK’S ECONOMY. A NEW CAMPAIGN IS CELEBRATING JUST THAT. WE’LL HAVE MORE ON THE
INDUSTRY’S IMPACT AND WHAT’S EXPECTED FROM NEW YORK TECH WEEK. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: TIME FOR TALKING TECH. BYRON ALLEN, LOOKING FOR LOCAL
TV STATIONS HIS COMPANY OWNS, COMING AS AN EFFORT TO REDUCE DEBT WHILE TAKING ADVANTAGE OF DEREGULATION IN THE BROADCAST BUSINESS. IN A STATEMENT, WE’VE RECEIVED NUMEROUS INQUIRIES AND WILL LOOK AT THE OFFERS. META IS BETTING ON AUTOMATION FOR THE FUTURE OF ADS. THE SOCIAL MEDIA COMPANY ENABLES BRANDS TO FULLY CREATE AND TARGET ADS BY USING A.I. BY THE END OF NEXT YEAR
ACCORDING TO THE "WALL STREET JOURNAL." THE META PLATFORM OFFERS SOME A.I. TOOLS THAT CAN GENERATE EXISTING APPS. A BRIDGE A.I., A STARTUP TO TRANSCRIBE MEDICAL CONVERSATIONS IS RAISING $300 MILLION BY ANDREESSEN AND HOROWITZ. THEY LOOK AT THEM AT $5.3 BILLION. LET’S BRING IT TO NEW YORK. NEW YORK TECH WEEK KICKS OFF
TODAY, KNOWN FOR FASHION AND FINANCE BUT SEEN A TECH BOOM. THE SECTOR MADE 41% OF THE CITY’S NET JOB GROWTH SINCE 2019. JUDY SAMUELS IS C.E.O., A NONPROFIT THAT PROMOTES TECH IN THE CITY AND YOU HAVE A RATHER CORNY CAMPAIGN. JUDY: WE’RE EXCITED ABOUT IT WITH SUPPORT FROM NEW YORK CITY AND SPONSORSHIP WITH RED ANTLER AND A CAMPAIGN CALLED OBVIOUSLY NEW YORK. IT’S GREAT TO CELEBRATE THE TECH INDUSTRY TO HIGHLIGHT ALL THE THINGS WE THINK ARE GOING SO WELL IN NEW YORK RIGHT POW NOW. CAROLINE:
GIVE US THE OBVIOUS FACT THAT MAKES NEW YORK THE NUMBER TWO TECH SECTOR IN THE WORLD. JULIE: WHAT MAKES NEW YORK AMAZING IS THEY’RE THE NUMBER ONE DESTINATION FOR COLLEGE GRADUATES. THE TECH SECTOR HERE IN NEW YORK, YOU TALKED ABOUT THE 41% FIGURE IS RESPONSIBLE FOR -- CREATES 10 TIMES THE AMOUNT OF NEW JOBS IN OUR LOCAL ECONOMY, 10 TIMES MORE THAN OTHER INDUSTRIES. CAROLINE: THAN FINANCE OR FASHION? JULIE: IN FINANCE THE PAST FIVE YEARS AND SPEAKS TO THE GROWTH, THE J CURVE WE’RE ON THAT’S SO IMPORTANT. IT’S A $700 BILLION INDUSTRY,
25,000 STARTUPS. IT’S JUST BOOMING HERE. IT’S BECAUSE OF COURSE, THE NEW YORK CITY IS HOME TO EVERY INDUSTRY AND INCREASINGLY TECHNOLOGY IS JUST POWERING EVERY OTHER INDUSTRY AND THE THING WE THINK IS HAPPENING HERE THAT IS UNIQUE TO NEW YORK IS THAT AS THE TECHNOLOGY, ESPECIALLY IN THIS MOMENT WHERE A.I. IS BOOMING, YOUR ENTIRE INTRO IS ABOUT ALL THESE COMPANIES GROWING A.I., BUILDING A.I. AS THE NEW TECHNOLOGY EVOLVES, WHAT HAPPENS UNIQUELY HERE IN NEW YORK IS COMPANIES FIGURE OUT HOW TO USE IT WHO IS GOING TO PAY FOR IT AND WHAT IT WILL DO IN PRACTICE AND THAT’S THE NEW YORK STORY. CAROLINE: GIVE US SOME PINUPS WHEN YOU THINK OF THE ICONS OF THE NEW YORK STARTUP SCENE, I THINK COMPETITION A.I. FROM THE UNDERLYING LEAPS AND BOUNDS DRIVING FORWARD THE TECHNOLOGY THIS COMES TO CODING BUT WHERE ELSE ARE WE SEEING SUCCESS STORIES? JULIE: IN THE A.I.
SECTOR WE HAVE RUNWAY, AN AMAZING STORY BECAUSE IT SHOWS THE CREATIVITY OF WHAT HAPPENS IN NEW YORK CITY ON THE A.I. SIDE AND BEYOND A.I., OF COURSE. YOU HAVE RAMP, PROBABLY THE FASTEST GROWING STARTUP IN NEW YORK, IN THE FIN TECH SPACE AND A TON HAPPENING IN DIGITAL HEALTH AND COMPANIES LIKE MAVEN. BUT I WOULD UNDERSCORE ALL THOSE COMPANIES ARE FOR THE MOST PART BUILDING IN UNIQUELY NEW YORK INDUSTRIES. CAROLINE: I LOVE YOU KEEP TRYING TO DO THIS TONGUE TWISTER AGAIN AND AGAIN AND NAILING IT. JULIE: I HAVE A LITTLE BIT OF PRACTICE.
CAROLINE: WHAT ABOUT WHY THE CAMPAIGN AROUND IT AND WHY THIS MOMENT AND NEED TO CELEBRATE? JULIE: LISTEN, THERE’S A COUPLE THINGS HAPPENING HERE. FIRST OF ALL, I THINK PEOPLE LOVE TO HAVE FUN. PEOPLE LOVE TO CELEBRATE AND RIGHT NOW NEW YORK IS ASCENDENT THIS COMES TO TECH AND WE WANTED TO PUT A STAMP ON THAT AND CALL IT OUT AND WANTED PEOPLE HERE TO FEEL EXCITED AND THEN WE WANTED TO GO ON THE ROAD AND REMIND PEOPLE JUST HOW GREAT THE NEW YORK TECH ECOSYSTEM IS BECAUSE HERE’S THE THING, WHEN YOU MEET YOUNG PEOPLE, THE PEOPLE OF ALL AGES BUT ESPECIALLY YOUNG PEOPLE, THEY ALWAYS WANT TO LIVE IN NEW YORK AND WE NEED TO REMIND THEM THAT YOU CAN COME HERE AND BUILD A REALLY DYNAMIC TECH CAREER DOING THAT. CAROLINE: WHEN I THINK OF THE RESURGENCE IN SAN FRANCISCO, BASICALLY REGENERATIVE A.I., CEREBRAL VALLEY, WE’VE COVERED IT TIME AND TIME AGAIN, DO WE NEED TO BE EITHER/OR, IS IT MUTUALLY BENEFICIAL, WE SEE COMPANIES BUILDING TALENT SYSTEMS IN BOTH PLACES? JULIE: LISTEN, I THINK YOU WANT TO SEE TECH BUILDING AND GROWING THE ECONOMY ALL OVER THE COUNTRY. THAT’S INCREDIBLY IMPORTANT. I LIKE THE WAY WE DO IT IN NEW
YORK AND SPEAKS TO ME AND WHY I’M HERE DOING THIS JOB HERE BUT I THINK TO YOUR POINT, WE WANT THIS TO HAPPEN ON BOTH COASTS. WE WANT THIS TO HAPPEN IN THE MIDDLE OF THE COUNTRY AS WELL. I THINK IT’S REALLY IMPORTANT. AND WE TALKED ABOUT A LOT OF HOMEGROWN NEW YORK TECH COMPANIES BUT OPEN A.I. IS ALSO GROWING LIKE CRAZY HERE
IN REALLY ICONIC NEW YORK BUILDING DOWNTOWN, THEY’RE TAKING MORE AND MORE SPACE. IT WILL TAKE ALL THESE PIECES AND ALL THIS INPUT. CAROLINE: YOU’RE THE QUINTESSENTIAL PUBLIC-PRIVATE PARTNERSHIP BECAUSE YOU’RE A NONPROFIT BRINGING THE LEADERS FROM THE ICONIC TECH SECTOR IN FOR HELP GIVE ADVICE TO THE PUBLIC SECTOR AND GOES BOTH WAYS. WHAT IS THE PUBLIC SECTOR DOING? JULIE: THE CITY IS PUTTING $4 MILLION BEHIND HELPING TO BOLSTER THE A.I. ECOSYSTEM AND PART OF IT IS HELP SUPPORTING OUR CAMPAIGN
BUT THEY’RE DOING A SMALL PART WITH THE A.I. NEXUS SYSTEM AND THEY’RE PUTTING THEIR MONEY WHERE THEIR MOUTH IS AND THE STATE IS DOING ITS FAIR SHARE WITH A GREAT PROGRAM CALLED EMPIRE A.I. EMPOWERING ACADEMIC INSTITUTIONS GIVING THEM ACCESS TO THE AMAZING QUANTITY OF COMPUTE THAT IS HARD FOR ANYONE OUTSIDE OF THE PRIVATE SECTOR TO GET IT. THE CITY IN THIS INSTANCE IS DOUBLING DOWN TO ENSURE THAT NEW YORK IS A PLACE WHERE PEOPLE WANT TO COME TO BUILD AND GROW TECH COMPANIES BUT ALSO WHERE PEOPLE WANT TO LIVE. CAROLINE: EXCITED TO SEE THE STATISTICS COMING OUT FOR 2025, A.I. JOB POSTINGS TOPPING 25,000 IN 2024 IN NEW YORK.
JULIE SAMUELS, PRESIDENT OF TECH N.Y.C. GO ENJOY TECH WEEK. MEANWHILE, LET’S TALK ABOUT CHINA BECAUSE TOM CRUISE’S FILM IS BACK ON TOP, "MISSION IMPOSSIBLE, RECKONING" EARNED $25.2 MILLION DURING THE OPENING WEEKEND, DEFYING TRADE, GEOPOLITICAL TENSIONS BETWEEN WASHINGTON AND BEIJING. COMING UP, ACTION IN THE TECH I.P.O. MARKET, CHIME, CIRCLE ARE ON DECK.
CAROLINE: CHIME AND CIRCLE TARGETING STRONG OPENINGS. ANTHONY HUGHES IS HERE TO BREAK IT DOWN AND THE WAY WE SEE THE STRENGTH OF CIRCLE SHARING MORE SHARES AT A HIGHER PRICE POINT, IT SEEMS. >> SEEMS TO BE GOING VERY WELL AND THE I.P.O. IS PRICING THE MIDDLE OF THIS
WEEK AND LAUNCHED LAST WEEK AND SINCE IT HAPPENED BITCOIN CAME OFF A BIT BUT THERE’S MORE ENTHUSIASM TOWARDS CRYPTO CURRENCY, OF COURSE, BECAUSE IT WAS HIT THE LAST MONTH OR SO AND SAW COIN BASE COME INTO THE S&P 500 LAST MONTH AND CONTRIBUTED TO A LOT OF ENTHUSIASM FOR THAT COMPANY IN PARTICULAR WHICH IS BEHIND STABLE COINS AND IT’S A BUSINESS THAT SOME PEOPLE ARE WONDERING WHERE IT FITS IN TO THE SCHEME OF THINGS AND WHETHER IT’S MORE LIKE A PAYMENT COMPANY AND MIGHT DESERVE A BIT OF A DISCOUNT TO A COMPANY LIKE COIN BASE WHICH HAS BECOME THE PREMIERE STOCK IN THE CRYPTO SPACE, ONE OF THE PREMIERE STOCKS ANYWAY. CAROLINE: WHAT’S INTERESTING IS CHIME BEING VERY MUCH A RETAIL OFFERING IN THE FIN TECH SPACE GIVES IN TO THE INSTITUTIONAL COMMAND THAT MAKES IT A SUCCESS STORY WHEN IT COMES TO THE MARKET? ANTHONY: CHINA IS A RETAIL STORY BECAUSE IT APPEALS SO MUCH TO THE CUSTOMERS AND SELLS A DEBIT CARD AND CREDIT CARD AND HAS BEEN POPULAR WITH A YOUNGER DEMOGRAPHIC AND REMINDS ME OF ROBIN HOOD A FEW YEARS BACK WHERE THERE IS AN IDEA YOU ATTRACTED A LOT OF CUSTOMERS AND MIGHT NOT BE EASY TO TRACK MILLIONS AND MORE RATHER QUICKLY LIKE YOU HAVE IN THE PAST BUT WHEN YOU HAVE THESE YOUNGER CUSTOMERS YOU CAN GROW WITH THEM AND ADD ON PRODUCTS SO THAT WILL BE A SELLING POINT WITH THE CHIME I.P.O. BUT THE COMPANY DOES COME AT A SIGNIFICANT DOWNROUND OR LOW VALUATION THAN IT WAS ABLE TO ATTRACT IN 2021 WHEN WE HAD VERY HIGH VALUATIONS FOR TECH COMPANIES INCLUDING FIN TECH AND THESE COMPANIES BUT ALSO SOFTWARE COMPANIES AND THE LIKE WE ARE IN A VERY DIFFERENT ENVIRONMENT FOR 2021 AND HAVE TO TAKE THAT INTO ACCOUNT.
CAROLINE: I NEED TO DISCLOSE MY HUSBAND WORKS AT COIN BASE AS WELL. ANTHONY HUGHES, THANKS FOR JOINING US. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." CHECK OUT OUR PODCAST AND FIND
2025-06-09 23:22
