White House Calls Out Amazon, SoFi CEO on Earnings | Bloomberg Technology
>> IN SILICON VALLEY AND BEYOND. THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM NEW YORK AND SAN FRANCISCO, COMING UP THE WHITE HOUSE TAKES AIM AT AMAZON AFTER REPORTED TO DISPLAY THE COST OF TARIFFS ON CERTAIN PRODUCTS BUT THE TECH GIANT DENIES THE MOVE. ED: SPOTIFY SEES A SURGE IN SUBSCRIBERS BUT SHARES SLIDE. CAROLINE: THE SOPHIA CEO JOINS US AFTER A FIRST QUARTER BEAT AND RAISING GUIDANCE SHOWING RESILIENCE IN THE ECONOMIC TURMOIL. WE WILL CHECK IN ON THESE MARKETS SHOWING RESILIENCE.
UP 3/10 OF A PERCENT. WE SEE WILL -- THE WORST READING IN TERMS OF CONSUMER SENTIMENT IN ALMOST FIVE YEARS. THAT FUELS THE DESIRE AND THE HOPE THAT THE FEDERAL RESERVE MIGHT INDEED START TO CUT RATES TO SUPPORT THE ECONOMY. UP 3/10 OF A PERCENT BUT SOME NEUTRAL NAMES ON THE DOWNSIDE PAID AND YOU ARE LOOKING AT ONE OF THEM. ED: IT'S A STORE YOU MAY HAVE MISSED ON EVERYTHING ELSE. THE STOCK WAS DOWN SIGNIFICANTLY. PAIRED SOME OF THE DECLINE.
TWO PIECES OF NEWS, TARIFFS IMPACT AND UNCERTAIN ENVIRONMENT HITTING THE OUTLOOK AND PERFORMANCE IN THE QUARTER. KEY SUPPLY TO THE AUTOMOTIVE SECTOR. BUT ALSO CEO RETIRING AND THEN PROMOTING FROM WITHIN. YOU WANT TO KEEP AN EYE ON THE KEY NAME IN THE SUPPLY CHAIN. >> LET'S RETURN TO THE WHITE HOUSE BECAUSE IT IS TAKING AIM AT AMAZON. >> I JUST GOT OFF THE PHONE WITH THE PRESIDENT ABOUT AMAZON'S ANNOUNCEMENT. THIS IS A HOSTILE AND POLITICAL
ATTACK BY AMAZON. -- ACT BY AMAZON. IT'S WHY WE ARE ON SHOWING CRITICAL SUPPLY CHAINS TO SHORE UP OUR OWN CRITICAL SUPPLY CHAIN AND BOOST OUR OWN MANUFACTURING. >> THE COMMENTS WEIGHED ON SHARES OF THE TECH GIANT GEARS UP TO REPORT RESULTS ON THURSDAY AFTER THE CLOSING BELL. KAILEY LEINZ IS HERE TO BREAK DOWN THE STORY. ALL OF THIS BASED ON REPORTING FROM ANOTHER SOURCE.
AMAZON HAS SINCE DENIED THERE WAS EVER UNDER CONSIDERATION FOR THE MAIN SITE THAT THEY WOULD MAKE IT TRANSPARENTLY CLEAR WHAT TARIFFS ADD TO THE PRICE OF GOODS PAGES GIVE US THE BACKGROUND. >> THE WHITE HOUSE WAS RESPONDING TO A REPORT FROM PUNCH BOWL NEW CITING A SOURCE THAT SUGGESTED AMAZON WOULD SOON GO IN TO POST-E SEVERAL ITEM -- ON ITS WEBSITE. AKIN TO WHAT WE'VE SEEN TEEMU DOING WITH CHARGES NOW THAT THE U.S. IS ENDED THAT EXEMPTION ON CHEAPER GOODS COMING OUT OF CHINA AND HONG KONG. AMAZON SAYS THAT WAS ACTUALLY
NEVER UNDER CONSIDERATION FOR ITS MAIN WEBSITE. THAT THE ULTRA LOW COST DID DISCUSS THIS BUT ULTIMATELY IT WAS NEVER IMPLEMENTED ON ANY AMAZON PROPERTY. SO THAT HOSTILE AND POLITICAL ACT OF THE KAROLINE LEAVITT REFERRED TO HAS -- NO ACTION HAS BEEN TAKEN AND PERHAPS AMAZON IS NOT YET ACTUALLY GOING SIDEWAYS WITH THE WHITE HOUSE BUT THE CRITICISM OF THE COMPANY THE KAROLINE LEAVITT LOBBIED DID NOT END THERE. SHE REFERRED TO AMAZON AS A
CHINA ALIGNED COMPANY AND REFERRED BACK TO A REUTERS REPORT GOING BACK TO 2021 ABOUT AMAZON PARTNERING WITH A CHINESE PROPAGANDA ARM ESSENTIALLY THAT AMAZON ALLOWED ITSELF TO RESPOND TO EAT IT FROM BEIJING OR COOPERATED WITH AN EDICT FROM BEIJING AROUND NEGATIVE VIEWS OF THE BOOK OF SPEECHES FROM CHINESE PRESIDENT XI JINPING. AND POINTING TO THAT AS AN EXAMPLE OF THE CHINA ALIGNMENT OF THIS COMPANY. SHE ALSO TALKED ABOUT THE IMPORTANCE OF TURNING AWAY FROM CHINA AND BUYING AMERICAN AND ON SHOWING AMERICAN MANUFACTURING.
WHAT THIS MEANS FOR THE COMPANY'S RELATIONSHIP WITH THE WHITE HOUSE IS A QUESTION AFTER IT HAS GONE TO GREAT LENGTHS TO INGRATIATE ITSELF WITH THE ADMINISTRATION. AMAZON DONATING $1 MILLION TO TRUMP'S INAUGURAL COMMITTEE. JEFF BEZOS SPENT TIME WITH PRESIDENT TRUMP TRYING TO FORTIFY THEIR RELATIONSHIP AND THAT RELATIONSHIP IS ONE THAT KAROLINE LEAVITT SAID SHE DID NOT WANT TO SPEAK TO THIS MORNING. CAROLINE: KAILEY LEINZ WE THANK YOU. LET'S TURN TO A KEY STORY. SPOTIFY SHARE SLIPPING AFTER THE COMPANY REPORTED A PROFIT THAT FELL SHORT OF ANALYST ESTIMATES AS A SUBSCRIBER NUMBERS GROUP.
REALLY IT FELT THERE WAS A LOT OF GOOD NEWS THAT ULTIMATELY WAS OUTSHONE BY A PROFIT HIT. >> I THINK INVESTORS ARE JUST JITTERY. THEY ARE SEEING SPOTIFY FORECAST INTENTIONALLY MISSING FOR GROSS PROFIT MARGIN AS WELL AS ACTIVE USERS. I THINK THEY ARE LIKE IS THIS GOING TO BE THE FUTURE AND THE TREND OR IS THIS A ONE-OFF MOMENT. SPOTIFY SAYS THIS IS A ONE-OFF
MOMENT OF COURSE. CAROLINE: THE LONG TERM -- ED: THE LONG TERM THEY WANT TO THINK ABOUT IS A WORLD WHERE THEY MOVE INTO PODCASTS, AUDIO, VIDEO MORE AND THEY MIGHT ALSO RAISE PRICES ALONG THE WAY. >> OVER THE PAST COUPLE OF YEARS THEY PRINTED AUDIOBOOKS. THEY ARE LAUNCHING THIS CREATOR PARTNER PROGRAM WHERE THEY ARE TRYING TO GET YOUTUBERS AND VIDEO PODCASTERS TO PUT VIDEOS ON THE SURFACE -- SERVICE. THEY ARE REALLY TRYING TO PIONEER SOME NEW FORMATS AND DIVERSIFY AWAY FROM MUSIC. ED: ASHLEY, THANK YOU VERY MUCH OF SOPHIA ARE HIGHER AFTER THE FINTECH COMPANY RAISED ITS FORECAST. THE CEO IS HERE WITH
US. I THINK THERE WAS A LOT OF FOCUS IN THE QUARTER ON THE MOMENTUM FROM THE BUSINESS PARTICULARLY THE INTEREST IN DEMAND FOR PRIVATE CREDIT. TALK TO ME ABOUT THAT AND WHERE YOU SEE THAT BUSINESS GOING FORWARD? ANTHONY: WE HAD A TREMENDOUS QUARTER AND A TREMENDOUS START TO 2025 WITH 33% YOUR GROWTH IN TOTAL. $771 MILLION AND THAT WAS UP TO 33% ARE FASTEST GROWTH IN FIVE QUARTERS. THE PLATFORM AS YOU MENTIONED WAS A KEY DRIVER OF THAT. VERY STRONG RESULTS THERE.
WE BASICALLY PAID A FEE BY THESE ASSET BUYERS THAT WANT US TO UNDERWRITE LOANS AGAINST THE SPECIFIC CREDIT BOX THEY OUTLINE. WE LEVERAGE OUR UNDERWRITING CAPABILITIES AND ARE SERVICING CAPABILITIES AND WE GET PAID A FEE FOR THAT. WE STARTED ABOUT A YEAR AGO WE HAVE ORIGINATED $6 BILLION IN LOANS IN THAT PARTICULAR BUSINESS. AND ON THE QUARTER WAS ABOUT $96 MILLION OF REVENUE SO IT'S ALMOST $4 MILLION ON AN ANNUALIZED BASIS WE EXPECT IT TO BE OVER $1 BILLION OVER THE COURSE OF TIME AS THE DEMAND FOR THAT PRODUCT INCREASES. ONE AREA WE HAVEN'T TAPPED INTO YET BUT THAT WE WILL IS TAKING SOME OF THE LOANS WE DECLINED. WE DECLINED ABOUT $100 BILLION
OF LOANS A YEAR AND MAKING THOSE AVAILABLE THROUGH THE LOAN PLATFORM BUSINESS AS WELL FOR THOSE WHO WANT A NEAR PRIME TYPE OF CREDIT ASSET. ED: THE AREA YOU WANT TO TAP IS CRYPTO. YOU ALLUDED TO ENTERING INTO STABLECOIN MARKETS. ANTHONY: WE ARE VERY FORTUNATE IN THAT WE HAVE BUILT THIS WAS ANOTHER RECORD QUARTER FOR MEMBER GROWTH. AT 11 MILLION MEMBERS NOW WE HAD 800,000 MEMBERS IN THE QUARTER. 1.2 MILLION PRODUCTS UP 34% RESPECTIVELY. WE WANT TO CONTINUE TO GIVE OUR
MEMBERS A FULL SUITE OF FINANCIAL SERVICES PRODUCTS. MONEY IS THE LARGEST PRODUCT WE HAVE TODAY. THE DEPOSITS ARE UP 52%. OUR BUSINESS ON ACCELERATION UP
21%. WE EXPECT THAT TO CONTINUE. CRYPTO ANOTHER ASSET CLASS TO ADD TO THE INVEST BUSINESS ALLOWING PEOPLE TO BUY, SELL AND HOLD CRYPTO COINS IS SOMETHING WE USED TO DO AND WAS ELIMINATED BECAUSE OF -- BUT NOW THE OCC HAS PUT OUT INTERPRETIVE LETTER THAT ALLOWS THAT BUSINESS TO BE PART OF A BANK AGAIN. SO WE WILL EVALUATE THE LANDSCAPE BUT WE WOULD LIKE TO NOT JUST ONLY OFFER CRYPTO FOR BUY, SELL AND HOLD BUT ALSO HAVE A TRANSCEND ALL OF OUR BUSINESSES.
SO USING BLOCKCHAIN AND CRYPTO IN THE LENDING AREA. IN ADDITION TO OUR THIRD-PARTY TECHNOLOGY PLATFORM SERVICES OFFERING THOSE TYPES OF INFRASTRUCTURE SERVICES. CAROLINE: YOU'VE GOT A REALLY OPTIMISTIC TONE AND YOU BEAT AND YOU RAISED.
THIS WHEN CONSUMER SENTIMENT IS THE LOWEST IN FIVE YEARS. HOW DO YOU HAVE THAT CONFIDENCE THAT CONSUMERS WILL CONTINUE TO BE OF DEMAND FOR YOU. ANTHONY: WE ARE SEEING STRONG DEMAND FOR GOODS AND SERVICES. OUR CUSTOMERS ARE HIGHER IN CUSTOMER THAN THE TYPICAL AVERAGE AMERICAN ABOUT 150,000 DOLLARS IN HOUSEHOLD INCOME AND A CREDIT SCORE ON AVERAGE THE 750 FROM A FICA STANDPOINT. WE ARE TAKING A SHARE FROM THE SPACE IN THE COUNTRY. SO WE ARE NOT AS DEPENDENT ON THIS CYCLICAL ENVIRONMENT BECAUSE WE ARE REALLY A SECULAR GROWER. THAT SAID OUR CREDIT
PERFORMANCE HAS ALSO BEEN VERY STRONG WHICH IS SUBJECT TO THE MACROECONOMIC ENVIRONMENT. BUT WE SAW IN OUR FIFTH QUARTER IMPROVEMENT IN 90 DALE DELINQUENCIES. WE SAW CONTINUED IMPROVEMENT IN OUR NET CHARGE-OFFS.
THE CONSUMER IS LOOKING QUITE STRONG AS IT RELATES TO CREDIT AND THE DEMAND FOR OTHER PRODUCTS LIKE SOPHIA -- SOFI MONEY AND INVEST. SPENDING WE ARE ANNUALIZED GOT $14 BILLION FROM OUR INSTALLED BASE. ANNOUNCEMENT QUITE STRONG ALSO. CAROLINE: YOU RAISED YOUR GUIDANCE BUT REALLY ONLY REFLECTING THE BEAT IN THIS QUARTER JUST GONE. SO WHY NOT RAISE MORE BROADLY ARE WE BEING CONSERVATIVE HERE? ANTHONY:ANTHONY: WE ALSO RAISED FOR THE FULL YEAR AND OUR GUIDANCE FOR Q2 IS ABOVE CONSENSUS ON BOTH REVENUE AND PROFITABILITY. WE HAVE REALLY STRONG MOMENTUM, WE SET IT ON THE CALL THAT WE WILL STEP ON THE GAS AND ACCELERATE OUR RATE OF PART INTRODUCTIONS AND THE EXISTING PRODUCTS. WE FEEL THEIR COMPETITIVE, THE
AUDIT -- IT IS SO IN FRONT OF US THAT WE SHOULD ACCELERATE OUR LEVEL OF INVESTMENT AND RATE OF INNOVATION. SO WE FEEL GREAT ABOUT IT AND WE WANT TO MAKE SURE WE CAN COMPOUND THESE GREAT GROWTH RATES FOR A WHILE. >> AS MUCH IS THAT IN THE YOU ALWAYS USE THE PHRASE RAPID INNOVATION. WHERE IS THE RAPID INNOVATIONS. AND IS AT SOME OF YOU GUYS ARE FOCUSED ON DOING IN-HOUSE OR WILL M & A BE PART OF YOUR TOOLKIT FOR THE BALANCE OF THE YEAR. ANTHONY: ALL OF THEM WE WANT TO BE THE
FASTEST IN THE MOST CONVENIENT, TO HAVE THE BEST SELECTION AND THE BEST CONTENT SO WE ARE CONTINUOUSLY ITERATING ON EACH ONE OF OUR PRODUCTS. IN ADDITION TO MAKING THE PRODUCTS BETTER WHEN THEY ARE USED TOGETHER. AS AN EXAMPLE WE INTRODUCED A SUBSCRIPTION PRODUCT CALLED SOPHIA PLUS. FOR FINANCIAL PRESCRIPT AND PRODUCT AT OVER $1000 OF VALUE. AND IT GIVES YOU ACCESS TO A
NUMBER OF DIFFERENT BENEFITS THAT YOU WOULD NOT OTHERWISE GET IF YOU USE THAT PRODUCT. 90% OF OUR EXISTING MEMBERS HAVE SIGNED UP. OF THOSE THAT HAVE SIGNED UP FOR THE 90% ARE FORMER EXISTING MEMBER -- FROM OUR EXISTING MEMBER BASE WHICH MEANS THEY WANT TO USE MORE OF OUR PRODUCTS WE HAVE TO OFFER AND IT ALLOWS THEM TO GET THESE BENEFITS. SO REALLY ENCOURAGING. AND AGAINST PEOPLE WHO ARE ALREADY MEMBERS TAKING OUT SOFI PLUS IT'S BEEN TAKING OUT A THIRD PRODUCT 30% OF THE TIME, SO PRETTY STRONG PERFORMANCE FROM THEM. WHICH IS AN ITERATION WE ARE
CONSTANTLY TRYING TO DRIVE ACROSS FIVE DIMENSIONS I MENTIONED. ED: WHAT'S YOUR INTERPRETATION OF HOW THIS ADMINISTRATION IS LOOKING AT REGULATION, SUPPORTING THE CRYPTO INDUSTRY AS IT RELATES TO YOU. WILL FINTECH BE A BIT MORE UNDER THE MICROSCOPE.
>> THE EARLY SIGNS IS THAT IT IS A MORE FAVORABLE ENVIRONMENT FROM A REGULATORY STANDPOINT. IT'S CRITICAL THAT WE CONTINUE TO PROVIDE THE SAFE AND SECURE WAY FOR OUR MEMBERS TO USE FINANCIAL SERVICES PRODUCTS AND THAT'S OUR PRIORITY REGARDLESS OF REGULATION. WE WANT TO HAVE GREAT NPS SCORES AND BE A TRUSTED HOUSEHOLD BRAND NAME.
BUT IT DOES FEEL LIKE THE REGULATORY ENVIRONMENT WILL ALLOW US TO OFFER MORE PRODUCTS TO OUR MEMBERS THAT WE NEED. WE'D LOVE TO BE ABLE TO DO SECURE LENDING OFF TO CRYPTOCURRENCY WHICH I BELIEVE WILL BE A GREAT LOW COST OF DEBT IN ADDITION TO THAT, POTENTIALLY BEING ABLE TO OFFER STABLECOIN THAT COULD HAVE SOME TYPE OF INTEREST-BEARING ELEMENT TO IT. AND BEING USED FOR PAYMENTS. ED: GOOD TO HAVE YOU BACK WITH US HERE ON BLOOMBERG TECHNOLOGY THANK YOU VERY MUCH.
SOME BREAKING NEWS CROSSING THE BLOOMBERG TERMINAL. RUSSIAN PRESIDENT VLADIMIR PUTIN IS INSISTING? TAKE CONTROL OF FOUR REGIONS OF UKRAINE THAT IT DOES NOT CURRENTLY FULLY OCCUPY AS PART OF ANY POTENTIAL AGREEMENT TO END THE WAR IN UKRAINE. THIS IS BLOOMBERG REPORTING CITING SOURCES. THE ADMINISTRATION AND THE
UNITED STATES HAD -- HAS AN APRIL 30 TARGET DEADLINE FOR A CEASE-FIRE AS WE REPORT THE DEMAND THE THE RUSSIANS ARE MAKING DEALS TO PRESIDENT TRUMP'S EFFORTS TO REACH THAT CEASE-FIRE, NEGOTIATIONS BLOOMBERG IS REPORTING AT AN IMPASSE FOR NOW BUT ACCORDING TO SOURCES, PUTIN WANTED TO TAKE CONTROL OF FOUR REGIONS IN UKRAINE. CAROLINE: PRESIDENT TRUMP ALSO SET TO OFFER SOME TERROR FOR AUTOMAKERS. MORE ON THAT NEXT. LET'S GET BACK TO THE FINTECH SIDE. PAYPAL UP 8/10 OF A PERCENT.
IT'S LEFT ITS FULL-YEAR FORECAST FOR EARNINGS UNCHANGED UNLIKE SOFI, BECAUSE THEY SAY THEY HAVE UNCERTAINTY IN THE GLOBAL MACRO ENVIRONMENT DESPITE A PRETTY STRONG FIRST QUARTER. ED: PRESIDENT TRUMP SET TO OFFER SOME TARIFF REPRIEVE FOR AUTOMAKERS LIFTING SECURITIES ON FOREIGN PARTS FOR CARS AND TRUCKS. THE MOVE COMES AS PRESIDENT TRUMP IS SET TO TRAVEL TO MICHIGAN FOR A RALLY TO MARK HIS FIRST 100 DAYS IN OFFICE. THAT'S GET OUT TO DETROIT WITH
DAVID WELCH. WE PROBABLY ARE PRINTED SIMPLY INJURE STREET -- INTERESTED IN THE EV SUPPLY CHAIN BUT WHAT DO WE KNOW ABOUT THIS LEVY REPRIEVE AND HOW DOES IT IMPACT AUTOMAKERS YOU COVER? DAVID: WHAT WE KNOW SO FAR IS THEY WILL DO SOMETHING PROBABLY TO GIVE A REPRIEVE ON TARIFFS ON PARTS WHICH IS ONE OF THE MOST DIFFICULT THING FOR THE ADMINISTRATION TO CALCULATE. THEY WERE GOING TO TARIFF THE NON-US CONTENT EVEN THE VEHICLES THAT QUALIFIED FOR A TARIFF FREE STATUS UNDER THE USMCA. THEY WOULD ALSO TRY TO DO
SOMETHING WHERE YOU REMOVE TARIFFS OR GIVE THE AUTOMAKERS A CREDIT BACK IF THEY ALREADY PAID A TARIFF ON METALS USED IN A PART COMING ACROSS SO THINK ABOUT A HOOD ON A VEHICLE, A COMPANY PAYING A TARIFF ON THAT BECAUSE OF STEEL, 25% AND THEN ANOTHER 25% SO THEY ARE TRYING TO ELIMINATE THAT SORT OF DOUBLE CHARGE. THE BIGGER ONE WOULD BE IF THEY GET RELIEF ON PARTS. WE DON'T KNOW THE DETAILS WHICH IS WHY THEY DIDN'T GIVE US NEW GUIDANCE. I DON'T THINK THEY COMPLETELY KNOW YET. THE CAR COMPANIES THEMSELVES
ARE LOOKING AT THIS AND SAYING WE NEED TO KNOW EXACTLY WHAT THE ADMINISTRATION IS GOING TO DO WITH ALL THESE TARIFFS FOR THEY CAN GET ANY KIND OF FINANCIAL PROJECTIONS AND UNDERSTAND THE IMPACT ON THEIR BUSINESS. CAROLINE: NOT SEEING MUCH RESULTS FOR THE STOCKS STILL UNDERWATER ON GM FOR EXAMPLE. WHAT MORE CARET ARE YOU EXPECTING FROM ANY OF THE CEOS OF THE MOMENT. >> I THING THEY WANT TO KNOW HOW MUCH OF THE PARTS THEMSELVES WILL GET TARIFFS AND IF THERE IS A CHANGE TO THE VEHICLES THEMSELVES. GM STILL BRINGING IN SOME
IMPORTANT VEHICLES FROM CANADA AND MEXICO. ONE OF ITS BEST SELLERS. ANY OF THAT CHANGE. SO THE ADMINISTRATION HAS SAID FOR COMPANIES THAT MAKE PRODUCTS HERE THEY WILL GIVE THEM A BREAK BUT WE DON'T KNOW EXACTLY WHAT IT IS. PARTS IS ON THE BIG ONE. >> CAROLINE: TESLA OFF BY 1.5%. WE THANK YOU VERY MUCH. JUST A BROADER TECH LANDSCAPE RIGHT NOW.
UNCLE REYNOLDS IS WITH US. MANAGING $45.6 BILLION IN ASSETS. THE ONGOING CHANGES COMING FROM THE ADMINISTRATION IS EXHAUSTING FOR INVESTORS AND CEOS AND ANYONE TO KEEP TRACK OF. HOW ARE YOU LOOKING TOWARDS BIG TECH EARNINGS COMING WEDNESDAY THURSDAY AND HOW DO YOU PRICE ANY OF IT? >> WE ARE LOOKING AT TECH FOR PERHAPS Q1 PUTTING 15% EARNINGS GROWTH ON A YEAR FOR YEAR BASIS BUT WE ARE IN A SITUATION WHERE INVESTORS ARE ASKING DOES IT MATTER ALL THAT MUCH WITH THE RESULTS ARE. WHEN THIS REALLY BIG CHANGES ON THE HORIZON. AND ELECTRONICS AREN'T REALLY EXEMPT FROM THAT. A GOOD ANALOGY FOR THAT IS
ACTUALLY BASEBALL ANALOGY. JUST SAY YOUR PICTURE GOT THROUGH A TOUGH INNING. THAT'S GREAT WE ARE GLAD YOU DID THAT BUT THERE ARE SLICK -- THEIR SLUGGER IS UP NEXT. IT'S THAT SORT OF NEXT PIECE WHERE THERE IS ON THE HORIZON THAT REALLY IS A BIG RISK YOU WANT TO HEAR MORE FROM THEM ABOUT. WE THINK IT'S MORE IMPORTANT TO BE PARSING THROUGH THE GUIDANCE AND THE STATEMENTS OUT OF THE C-SUITE FOR THE REST OF THE YEAR RATHER THAN THE ACTUAL RESULTS THEMSELVES FROM Q1. CAROLINE: APPLE LIKELY TO GET A LOT OF PULL FORWARD AS CONSUMERS RUSH TO BUY THEIR PHONES BEFORE PRICES WENT UP.
WHAT DO YOU THINK IN TERMS OF THE NARRATIVE WE HAVE STEERING INTO INDIA IN TERMS OF SUPPLY CHAIN. OR CEOS MANAGING TO GET AHEAD OF THESE MOVES? MIKE: THERE IS NO SHORTAGE OF BUSINESSES BEING DYNAMIC IN THE U.S.. THAT IS SOMETHING YOU SEE ACROSS THE BOARD. TECH IS BEHAVING THAT WAY AS WELL TRYING TO GET AHEAD OF THE SUPPLY CHAIN RECONFIGURATIONS. THAT'S HAPPENING IN REAL TIME.
INVESTORS ARE ALSO THINKING THROUGH WHEN CONSUMERS MAY SEE THESE PRICES START TO ARRIVE IN THE STORES AND ELECTRONICS ARE PROBABLY SOME OF THE FIRST PLACES YOU CAN SEE IT BECAUSE A LOT OF OUR ELECTRONICS COME FROM ABROAD AND THERE IS DECENT TURNOVER IN TERMS OF INVENTORY WHEN IT COMES TO ELECTRONICS. THERE IS A REPRIEVE BECAUSE WE GOT THAT EXEMPTION OF SOME ELECTRONIC PARTS FOR TECH WHICH HELPS BUT IT WILL PROBABLY NOT BE ALL ENCOMPASSING. IT'S ELECTRONICS ALONGSIDE APPAREL AND TOYS AND GAMES IT COULD BE ONE OF THE FIRST PLAYERS THESE DEAF PLACES THEY SEE THOSE HIGHER PRICES. ARE THEY GOING TO BALK AT THOSE PRICES OR WILL THEY CONSUME NO MATTER WHAT.
ED: WITH BIG TECH FOCUSED ON GUIDANCE, WHAT HAPPENS IF BIG TECH DOES NOT GIVE US ANY. MIKE: THAT'S A REALLY UNCERTAIN ENVIRONMENT AND UNCERTAINTY HAS BEEN THE NAME OF THE GAME FOR ALL OF APRIL FOR CERTAIN. INVESTORS HAVE BEEN RE-PRICING THE VALUATION MULTIPLES THEY HAVE BEEN REWARDING TO THE MAGNIFICENT SEVEN MEGA CAP TECH. THOSE WILL COME DOWN A LOT.
BUT BAR ARE OUR ESTIMATES THOSE ARE NOT IN FAIR VALUE JUST YET. YOU COULD START TO SEE IF INVESTORS ARE ASKING QUESTIONS THAT CAN BE ANSWERED YET. ED: WE ARE INTERESTED IN THE HYPERSCALERS, THE CALCULUS SEEMS PRETTY SIMPLE. NOT SERVE MUCH HOW MUCH MONEY THEY MAKE AN URN BUT HOW MUCH MONEY THEY ARE WILLING TO COMMIT AND SPEND. HOW CLOSELY DO YOU WATCH THE
CAPITAL SPEND CHOOSE? ED: ONE OF THE -- MIKE: ONE OF THE BIG THEMES OF THE LAST DECADE IS THE MARKET HAS BEEN LOOKING AT THINGS ARE CAPITAL-INTENSIVE. THESE WARRANT REALLY ALL THAT CAP X INTENSIVE. BUILDING OUT DATA CENTERS. WE WOULD ARGUE THAT IF THE MAG SEVEN WERE THEIR OWN SECTOR THEY WOULD BE ONE OF THE MOST CAPITAL-INTENSIVE IN THE S&P 500 SAVE FOR MAYBE UTILITIES OR REAL ESTATE WHICH ARE CAPITAL-INTENSIVE. IT SORT OF MAKES SENSE TO SEE THE MARKET PRICING THESE COMPANIES ON THAT INTENSITY ALONE BECAUSE YOU DON'T ALWAYS HAVE A GUARANTEE THAT YOU HAVE THE EARNINGS FLOW THROUGH ON THAT INVESTMENT. IT IS ALWAYS UNCERTAIN.
ED: MICHAEL REYNOLDS, THANK YOU VERY MUCH. AMAZON'S STARLINK RIVAL SEES A SUCCESSFUL LAUNCH. WE HAVE MORE ON THAT NEXT. THIS IS BLOOMBERG TECHNOLOGY. ♪ ED: TIME FOR TALKING TECH. A JUDGE IN SPAIN'S NATIONAL
COURT IS OPENING AN INVESTIGATION TO DETERMINE WHETHER THE COUNTRYWIDE BLACKOUT WAS CAUSED BY CYBERATTACKS. SPAIN'S GRID OPERATOR SAID THE BLACKOUT IMPACTED SPAIN, PORTUGAL AND PARTS OF FRANCE IS NOT DUE TO ANY HISTORICAL ATTACK BASED ON PER LUMINARY ANALYSIS. UNVEILING THEIR -- ALIBABA UNVEILING THE QUENTIN THREE. CLAIMING THE NEWEST MODEL RIVALS THE PERFORMANCE OF DEEPSEEK INCLUDING IN MATH AND CODING AND INTRODUCES A WAY TO MIMIC HUMAN REASONING. AMAZON'S FIRST BATCH OF 27 PRODUCTION SATELLITES HAVE REACHED LOW-EARTH ORBIT. THE SATELLITES LIFTED OFF ON MONDAY WITH THE CEO SAYING THEY WERE OPERATING AS EXPECTED.
IT'S THE FIRST LAUNCH OF A PLANNED 3002 HUNDRED 36 SATELLITES AMAZON INTENDS TO SELL INTERNET CONNECTIVITY TO RIVAL STARLINK. CAROLINE: DISCUSSING THE STRATEGY BEHIND THE TIE UP WITH GOOGLE. AS WE HAD TO BREAK, CHECK OUT META-STOCK. WE ANTICIPATE EARNINGS THIS WEEK BUT A STANDALONE APP BEING >> WELCOME BACK. I'M CAROLINE HYDE IN NEW YORK.
QUICK CHECK ON THESE MARKETS. CLINGING TO GAINS WHEN IT COMES TO THE NASDAQ 100 AND SOME PRETTY AWFUL CONSUMER SENTIMENT HITTING OVERALL NEAR A FIVE-YEAR LOW BUT WILL THE FED STEP IN. WE ARE LOOKING AT CRYPTO STILL MANAGING TO OUTPERFORM.
WE ARE AT 94,894 SO CLEARLY A HAVEN AMID THE TARIFF TURMOIL. TERMS OF THOSE EARNINGS WE START TO DIGEST, I'M LOOKING AT THE OVERALL SEMICONDUCTOR INDEX WHICH IS LOWER TO THE TUNE OF THREE QUARTERS OF PERCENT. WE OF COURSE LOSE THE CEO HANDING OVER THE REINS EVEN THOUGH HE IS 56 YEARS OLD.
WHAT DOES THAT MEAN ABOUT THE PLACE IN WHICH THE BUSINESS IS THAT HE LEAVES AS WE SEE REAL CONCERN ABOUT THE UNCERTAINTY AMID THESE TARIFFS. I'M LOOKING AT CADENCE WHICH MANAGED TO OUTPERFORM ITS EARNINGS. THEY ALSO SEE TESLA ON THE DOWNSIDE. THAT'S AS WE SEE ANALYSTS SAYING I STICK BY MAISEL RATING. SEEN VOLUMES DECLINES GOING FORWARD. >> LET'S GET BACK TO TODAY'S TOP STORY.
THE WHITE HOUSE ANNOUNCING AMAZON'S REPORTING PLAN TO DISPLAY THE COST OF PRESIDENT TRUMP'S TARIFFS ON PRODUCTS. LISTEN TO THIS. >> I GOT OFF THE PHONE WITH THE PRESIDENT AND THE ANNOUNCEMENT THIS IS A HOSTILE AND POLITICAL ACT BY AMAZON. ANOTHER REASON WHY WE ARE ONSHORE AND CRITICAL SUPPLY CHAINS HERE AT HOME TO SHORE UP OUR OWN CRITICAL SUPPLY CHAIN AND BOOST OUR OWN MANUFACTURING. >> THE WHITE HOUSE COMMENTS AS THE TECH GIANT GETS READY TO REPORT RESULTS THURSDAY AFTER THE CLOSING BELL. THE STOCKS DECLINE MUCH MORE MUTED THAN IT HAD BEEN IN THE MARKET OPEN NOW DOWN ABOUT 9/10 OF A PERCENT. MATT DAY JOINS US WITH MORE.
IN THE LAST 20 MINUTES AMAZON REVIVED -- REVISE THEIR STATEMENT. JUST HIT OUR INBOXES SO LET'S START WITH THAT. WHAT IS AMAZON SAYING IN RESPONSE TO THE WHITE HOUSE CLAIM. GIVE US THE FULL DETAILS OF THE STORY. >> AMAZON SAYS THAT WHENEVER CONSIDERING ANY TYPE OF DISCLOSURE BUT THEY WERE CONSIDERING THEY HAVE A LOW COST GOODS SERVICE, IT'S VERY MUCH IN THE MOLD OF TEEMU. IT'S THINGS DIRECTLY FROM CHINA. THEY SAY THEY WERE CONSIDERING
SOME SORT OF DISCLOSURE THERE RELATED TO CLOSING THE EXEMPTION ON DUTIES FOR PRODUCTS SHIPPED IN THAT MANNER WOULD HAVE NO PLANS TO DO ANYTHING ON THE MAIN SITE AND THERE'S NO FUTURE FOR THIS. >> NO STORY DESPITE -- DESPITE THE REPORT. THE DAMAGE AND WAS ALREADY DONE WHEN IT COMES TO THE NARRATIVE THAT WAS DRAWN UPON BY THE WHITE HOUSE ADMINISTRATION AND IT WENT AS THOUGH KAROLINE LEAVITT WENT FURTHER PUTTING IN AN OLD REPORT FROM REUTERS THAT WAS DATED IN THE PREVIOUS ADMINISTRATION. MATT: A LITTLE BIT OF A SHOOT FIRST ASK QUESTIONS LATER FROM THE WHITE HOUSE. THEY CLEAR THIS UP. THIS KIND OF VALIDATES AMAZON'S BEEN REALLY QUIET ON TARIFFS SINCE THEY ROLLED OUT. NOT A LOT OF PUBLIC STATEMENTS WE SAW ANDY JASSY INTERVIEWED ABOUT THIS TIME A WEEK AGO ON TARIFFS AND IT WAS VAGUE ON THE COMPANY'S PLANS.
THEY WOULD RATHER STAY OUT OF THIS THIS MORNING. ED: I THINK IT'S HELPFUL TO HELP THEM UNDERSTAND HOW AMAZON WORKS FROM THE INVENTORY STANDPOINT. FROM THE VENDOR STANDPOINT.
SO APRIL 9 WE REPORTED AMAZON CANCELED SOME INVENTORY ORDERS FROM CHINA AND YOU INCLUDED THE REPORTING THAT THOSE CANCELLATIONS PUT THE TARIFF EXPOSURE BACK ON THE VENDORS THEMSELVES. JUST EXPLAIN HOW THAT MARKETPLACE WORKS. >> AMAZON SELLS THINGS INTO PRIMARY WAYS.
THEY GRAB A BUNCH OF THINGS IN BULK. THEY BUY IT, THEY IMPORTED. THEY ALSO THIRD-PARTY SELLERS WHO SELL DIRECTLY. THE REPORT THAT WE HAD. ONE OF THE WAYS AMAZON GETS ITS GOODS IS A CONSOLIDATE SHIPMENTS AND SAYS GIVE IT TO US AT THE FACTORY OR THEREABOUTS WE WILL TAKE IT AND REPORT IT FOR YOU.
THEY TOLD SOME OF THEIR VENDORS LISTEN, YOU GUYS ARE RESPONSIBLE FOR THIS YOURSELVES. ESSENTIALLY PUTTING THEM ON THE HOOK FOR TARIFFS. ED: MATT DAY, THANK YOU VERY MUCH. LET'S TURN TO CYBERSECURITY. DEMAND FOR CLOUD PROTECTION IS EXPECTED TO SURGE AS MORE BUSINESSES ADOPT AI CAPABILITIES. WE DISCUSSED THAT WITH THEIR ACQUISITION OF PROTECT AI.
THE BIGGEST MOVE IN THE SPACE IS GOOGLES $32 BILLION DEAL WITH WICKS. JOINING US IS THE CHIEF VICE PRESIDENT OF PRODUCT. THE INNOVATION WAS A SUPERFAST WAY OF SCANNING VIRTUAL MACHINES. THAT IS WHAT THEY DO. WHAT IS THE BENEFIT TO GOOGLE AND HAVING THAT TECHNOLOGY. IS IT THAT GOOGLE USES IT ITSELF OR IS IT SOMETHING OFFERED THROUGH GCP? I THINK THAT'S WHAT PEOPLE ARE TRYING TO UNDERSTAND.
>> THAT WAS HELPING EVERY ORGANIZATION IN THE WORLD BUILD SECURELY ON CLOUD AND THAT MEANS ANY CLOUD. IT MEANS AZURE. AND THE MISSION WAS A BIG MISSION. SECURITY, EVERYTHING CLOUD BEEN SECURING FOR THE MODERN DEVELOP AND STAFF. AND THE -- THEY WERE JUST FOUNDED, WE STARTED FIVE YEARS AGO. IT'S A MAJOR RATE OF GROSS. CRITICAL OF THIS MISSION FOR MODERN ORGANIZATIONS TODAY AND GOOGLE SHARES THAT MISSION.
THE MISSION THEY SHARE WITH US IS THAT. SECURING EVERY CLOUD NO MATTER WHAT THE ORGANIZATION USES. I CAN SAY THAT ON OUR SIDE THEN THE LOGIC FOR THE ACQUISITION WE THINK WE CAN ACTUALLY SUPPORT THIS EXACT MISSION OF HELPING SECURE EVERYTHING MUCH FASTER USING THE PARTNERSHIP WITH GOOGLE TO THE SENSE OF BEING ON THE BLEEDING EDGE OF AI TECHNOLOGY WHICH WILL ENABLE US TO BUILD EVEN FASTER AND HELP SHIP THAT MISSION FASTER. ED: THERE'S A PROCESS THAT WILL
PLAY OUT, I GET THAT. IS ME THE BACK STORY. WHO CAME UP WITH THIS GREAT IDEA BUT GOOGLE AND WIZ SHOULD BE ONE. >> IT COMES TO SHARING THAT MISSION.
I THINK GOOGLE -- THE GOOGLE TEAM IS AS COMMITTED AND PASSIONATE GIVING ORGANIZATIONS FREEDOM TO BUILD SECURELY ON CLOUD. THE PARTNERSHIP IS VERY NATURAL FOR US IN THAT SENSE. >> FREEDOM IS ALSO GIVEN TO CONTINUE TO SERVE ON OTHER CLOUD OFFERINGS AS WELL. HOW MUCH IS A PRODUCT STRATEGIC THAT YOU ARE ARE YOU THINKING ABOUT CONTINUING TO ROLL OUT FOR OTHER ORGANIZATIONS NOT JUST THE ENTERPRISES THAT GOOGLE SERVES. RAAZ: ABSOLUTELY. THIS WAS ALSO VERY CLEAR THE WAY GOOGLE THEMSELVES TALKED ABOUT THIS.
THE MISSION IS TO SUPPORT AWS. AND SUPPORT GCP. REMAINING WITH THE EXACT SAME MISSION AND GOOGLE SHARES THAT EXACT SAME VIEW. SO WE WILL CONTINUE THAT SOLUTION FOR ANY CLOUD. >> GOOGLE CLOUD PLATFORM PERHAPS PREYED ARE YOU DOING M&A? WHAT'S SO INTERESTING IS THE WAY YOU ORGANICALLY GROWING. ARE YOU STILL GOING TO BE ABLE
TO DO DEALS, STILL FOLDING IN THE TEAMS? RAAZ: THAT'S A GREAT POINT. WIZ HAS BEEN FORTUNATE OVER THE PAST YEAR AND A HALF WE HAD THREE ACQUISITIONS. AND ALL THREE OF THOSE ACQUISITIONS WE HAVE BEEN I THINK WE APPROACH IT IN A DELIBERATE WAY MEANING WIZ ACQUIRED COMPANIES WHERE WE KNEW THE PEOPLE AND TECHNOLOGY BUT WE DIDN'T REALLY SELL THE TECHNOLOGY VERSUS ALL THE COMPANIES JOINED AND THEN STOPPED WHAT THEY WERE DOING AND REBUILT THEIR PRODUCT AND THEIR SOLUTIONS ON TOP OF THE NATIVE PRODUCT BECAUSE ONE OF THE CHALLENGES WE SEE IN CYBERSECURITY IS GIVING END USERS SECURITY TEAMS AND DEVELOPERS A REALLY GOOD PRODUCT. SO THAT'S WHAT WE HAVE BEEN DOING OVER THE PAST FEW YEARS AND NOTHING HAS CHANGED IN OUR STRATEGY. WE ARE ALWAYS MAKING THE PRODUCT GREATER WITH GREAT SOLUTIONS IN THE SPACE. ED:
YOU FOUNDED 2020, IN MY CAREER I'VE COVERED COMPANIES THAT HAVE GROWN VERY FAST AND SOMETIMES TOO FAST. WHAT IS IT THAT IS UNIQUE. WHAT IS THE DIFFERENTIATOR. IS IT JUST THE TALENT POOL YOU HIRED. IS IT THE BRAINCHILD OF THE UNDERLYING CODE BASE.
I THINK PEOPLE DON'T UNDERSTAND HOW YOU PULLED IT OFF. RAAZ: IT SOMETHING WE THINK ABOUT OFTEN. I THINK A LOT OF THE SECRET IS TO REALLY GET TO THIS LEVEL OF FAST PACE EXCELLENCE, THERE ARE MANY DIFFERENT THINGS WIZ HAD TO EXECUTE ON ARID AND IT IS FOR SURE THE TECH BUT IT ALSO THE GO TO MARKET STRATEGY. ONE THING THAT DROVE US FROM DAY ONE WAS REALLY LIVING WE WERE SOLVING FOR. AND DEEPLY UNDERSTOOD THE CORE CHALLENGES AND ALSO FROM DAY ONE. WE WERE PROUD TO SERVE MORE THAN 50,000 -- WIZ IS THEIR
SOLUTION FOR CLOUD SECURITY. BY PARTNERING WITH THOSE COMPANIES AND LISTEN TO THEM FROM DAY ONE OUR ENTIRE FOCUS IS SOLVING FOR THE PROBLEMS. WE WAKE UP ALL WE CARE ABOUT THE CUSTOMERS THEIR PROBLEMS, STRIVEN EVERY DECISION WE'VE MADE INCLUDING HIRING, PRICING AND EVERYTHING. ED: HOW WILLING OUR CUSTOMERS TO SPEND ON RELATIONSHIPS. THERE'S NO ECONOMIC UNCERTAINTY, TARIFF RECESSION LET'S TAKE A B BEFORE WE SIGN UP TO A NEW DEAL? RAAZ: THE MONTH WE STARTED WAS WHEN COVID HIT. THAT MARCH. SO IT ALSO SEEMED LIKE A VERY BAD TIME TO BE SELLING REALLY ANYTHING EVER OR TO START THE COMPANY. WE ARE USE IT.
IF THERE ARE SOME THINGS THAT NEVER STOP IN SOME WAY. THE ADOPTION WE SEE ACROSS AI. THEY ARE PUSHING COMPANIES EVEN FASTER AND MAKING THEM I THINK LOOK FOR WAYS TO BUILD SECURELY. CAROLINE: GREAT TO HAVE SOME TIME WITH YOU. MEANWHILE COMING UP, 100 DAYS IN TRUMPS A SECOND TERM.
IT'S ALSO BEEN 100 DAYS OF DOGE. THIS IS BLOOMBERG TECHNOLOGY. ♪ TERMINAL AS WELL AS APPLE, SPOTIFY AND I HEART. THIS IS BLOOMBERG. >> I WOULD SAY 100 DAYS IN WE NEED ANOTHER 100 DAYS TO SEE WHERE THE POLICY DIRECTIVES ARE GOING.
AND TRY TO BETTER UNDERSTAND HOW WHAT'S TALKED ABOUT SO FAR PARTICULARLY WITH RESPECT TO TRADE IS ULTIMATELY GOING TO BE PUT IN PLACE AND PAY OFF. >> DAVID SOLOMON SPEAKING EARLIER TODAY DISCUSSING THE IMPACT OF PRESIDENT TRUMP'S FIRST 100 DAYS IN OFFICE. MIKE SHEPARD JOINS US NOW. THE HIGHS AND LOWS FOR TAXES SINCE JANUARY THE 20TH. >> IT'S BEEN QUITE A CONSEQUENTIAL STRETCH FOR THE TECH INDUSTRY AND THEY HAVE REALLY BEEN THERE FROM DAY ONE.
ON JANUARY 20 YOU RECALL WE SAW THOSE HIGH-PROFILE LEADERS FROM THE INDUSTRY, FROM ELON MUSK TO SUNDAR PICHAI, MARK ZUCKERBERG TO JEFF BEZOS IN TIM COOK PRIME SEATS OF THE INAUGURATION. SINCE THEN IT'S TAKEN OFF. THE INDUSTRY REALLY GOT A SEAT AT THE TABLE. THE PRESIDENT MAKING EARLY COMMITMENTS ON ADVANCING AND REVAMPING ARTIFICIAL INTELLIGENCE POLICY AND WAS ABLE TO CLAIM SOME CREDIT ON BIG PROMISES OF INVESTMENTS IN THE U.S. BY COMPANIES LIKE TSMC AND APPLE.
AND YET WE ARE HEARING ALL OF THIS CONCERN SURROUNDING THE INDUSTRY BECAUSE OF TRADE AND TARIFFS. THE UNCERTAINTY ECONOMICALLY IT CREATES OVERALL FOR THE U.S. AND THE RISK IT POSES TO SUPPLY CHAINS AND INCREASING COSTS FOR CONSUMERS ALIKE. ED: ONE OF THE EXAMPLES WAS NVIDIA PLEDGING TO BUILD $500 BILLION WORTH OF GOODS. $500 BILLION WORTH OF AI SALES WHICH THE ADMINISTRATION INCORRECTLY CLAIMED TO BE A $500 BILLION INVESTMENT. YOU MENTIONED THE WORD POLICY. TARIFFS IS ONE THING. YOUR PEOPLE LIKE DAVID SACHSEN
THE WHITE HOUSE AS THE AI CZAR. HAVE WE GOT ANYTHING CODIFIED YET. ANYTHING THROUGH CONGRESS? MICHAEL: IT'S A GREAT QUESTION BECAUSE LOST IN THE SHUFFLE WITH ALL THE TURMOIL SURROUNDING TARIFFS ARE THOSE POLICY OFFERS WE KNOW ARE BEING WORKED ON, CRAFTED RIGHT NOW ON ARTIFICIAL INTELLIGENCE AND ON CRYPTO POLICY AS WELL. DAVID SACHS IS BIZARRE INSIDE THE WHITE HOUSE FOR THOSE AREAS AND THEY ARE CRUCIAL TO THE INDUSTRY.
HOW THIS POLICY GETS DEFINED COULD DETERMINE WHAT REGULATIONS ULTIMATELY END UP BEING NOT ONLY FROM AN AGENCY PERSPECTIVE BUT HOW CONGRESS MAY TRY TO LEGISLATE. BUT WHEN WE TALK ABOUT CONGRESS THEY HAVE SO MUCH ON THEIR PLATES ALSO THAT IS CONSEQUENTIAL AS WELL FOR THE TECH INDUSTRY AND THAT IS BIG TAX PACKAGE THEY ARE TRYING TO PUSH THROUGH TO GET DONE BY JULY 4 ACCORDING TO SCOTT BESSENT WHEN YOU TALK TO LAWMAKERS IT'S A DIFFERENT QUESTION. THEY FEEL LIKE THEY NEED A LITTLE BIT MORE TIME TO BE ABLE TO PULL THAT ALTOGETHER. ED: COMPANIES TRYING TO NAVIGATE ALL OF THESE CHANGES.
ONE WHO'S NAVIGATING IT TODAY IS AMAZON OF COURSE AND CAUGHT IN THE CROSSHAIRS. THEY'VE SAID THIS WAS NEVER GOING TO HAPPEN IN TERMS OF IDENTIFYING TARIFFS AND HOW MUCH IT WOULD ADD TO INDIVIDUAL PRICES. BUT WE HEAR FROM CNN THAT PRESIDENT TRUMP HAS CALLED JEFF BEZOS, THE CHAIRMAN OF THE COMPANY, THE FOUNDER, TO COMPLAIN ABOUT TRUMPS CALL WITH BEZOS. HOW ARE CEOS TRYING TO NAVIGATE? HOW HER PREVIOUS FOUNDERS GIVEN HOW MUCH THEY PREVIOUSLY GAVE TO TRUMP IN SOME CASES. MICHAEL:
THIS IS SUCH AN INTERESTING QUESTION FOR COMPANIES BECAUSE THEY ARE SEEING THE RISK OF WHAT THIS ADMINISTRATION IS TRYING TO BRING IN POLICY WISE. THE PRESS SECRETARY SET A VERY CLEAR SIGNAL TO CORPORATE AMERICA THAT DISPLAYING THOSE COSTS OF THE TARIFFS WOULD BE CONSIDERED A HOSTILE POLITICAL ACT. IT WAS A SHOT ACROSS THE BOW AND THEY WANT TO MAKE SURE COMPANIES ARE FOLLOWING IN LINE WITH THE POLICY NOT WORKING AGAINST IT AND COMPLAINING ABOUT IT IN PUBLIC. THERE ARE OTHER WAYS THE POLE. WE TALKED ABOUT THE POLICY ON AI BUT THERE ARE OTHER AREAS.
ANTITRUST AND COMPETITION IS ANOTHER AREA WE'VE BEEN PAYING ATTENTION TO. MAJOR ANTITRUST TRIALS UNDERWAY RIGHT NOW. ONE INVOLVING META-AND THE OTHER THE PENALTIES THAT COULD BE LINKED -- AGAINST GOOGLE FOR CHROME AND DOMINANCE IN THE AREA. THESE ARE MATERIALS WHERE THE INDUSTRY HAS BEEN TRY TO PUSH FOR A BREAK BUT WE ARE SO FAR NOT SEEING ONE. ED:
ELON MUSK'S DOGE REACHING 100 DAYS SINCE ITS INCEPTION. THE PUBLIC -- TESLA CEO SPLIT CLINICIANS HAVE COST OF NEARLY $130 MILLION IN PERSONAL WEALTH WITH TESLA STOCK FALLING 33% SINCE TRUMPS ALL INAUGURATION. YOU BEEN WRITING ABOUT THIS ABOUT HOW THROUGH THE LENS OF TESLA SHARES IT'S BEEN PAINFUL FOR HIM BUT IF YOU LOOK AT SOME OF HIS PRIVATE COMPANIES WE BROKE THE STORY ABOUT X AI POTENTIALLY RAISING MONEY. THEY HAVE HAD SOME ADVANTAGES THERE. >> I THINK THERE'S A LOT OF INTEREST IN BEING ASSOCIATED WITH ELON MUSK. IT HAS ALWAYS BEEN THAT WAY BUT EVEN MORE SO NOW HE IS CLOSE TO PRESIDENT TRUMP.
WE HAVE SEEN OUT RAISING FOR X, X AI, DESPITE THE NEGATIVE CONSUMER BACKLASH THERE IS STILL A LOT OF INTEREST ON THE BUSINESS SIDE WITH INVESTORS TO GET INTO THE ELON ORBIT. CAROLINE: WHAT'S CONFUSING PEOPLE IS HOW MUCH WILL THIS TIME BE DEDICATED TO THE WHITE HOUSE GOING FORWARD. 130 DAYS IS WHAT EVERYONE KEEPS CITING BUT MANY CLOSE WILL SAY HE WILL STILL BE A REALLY BIG RESOURCE TO THE WHITE HOUSE GOING FORWARD. DOES THAT MEAN TO HIS BRANDS? KURT: HIM ON THE EARNINGS CALL HE SAID I AM -- I WILL STICK AROUND AS LONG AS THE PRESIDENT WANTS ME TO BE HERE. I MAY STICK AROUND THROUGH THE ENTIRE ADMINISTRATION TO MAKE SURE ATTANASIO -- DOGE CONTINUES.
HE REFERRED TO IT AS A SOFT EXIT FROM GOVERNMENT. THE MEDIA FELT IT WAS MUCH PERFORMATIVE FOR TESLA INVESTORS IS ANYTHING RATED TELL THEM I'M COMING BACK, GIVE THEM THAT NEWS THEY ARE CRAVING BUT REITERATE I'M NOT NECESSARILY LEAVING ENTIRELY. I THINK WE WILL SEE HIM CONTINUE TO STICK AROUND. CAROLINE: THANK YOU FOR THE LATEST. OPENAI THAT'S A SHOPPING FEATURE. WE WILL HAVE THE DETAILS NEXT
PRINT THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: CHATGPT USERS CAN NOW GO SHOPPING USING THE CHATBOT. OPENAI ANNOUNCED THE FEATURE. RACHEL METZ IS HERE WITH MORE. TECHNICALLY SPEAKING YOU ARE
GOING TO A DIFFERENT WEBSITE VIA THE APP. >> IT IS SIMILAR TO A LOT OF COMPANIES THAT OFFER REVIEWS ON LINES ARE DOING SUCH AS WHY YOUR FOR INSTANCE. THAT WHICH OVERVIEW AND THERE WOULD BE A LINK AND YOU COULD CLICK OUT TO THE WEBSITE. OPENAI IS DOING A SIMILAR THING WITH CHATGPT.
IF YOU SEARCH, IF YOU SAY SHOW ME A NICE LIPSTICK FOR UNDER $20 IN THEORY IT WOULD GIVE YOU SEVERAL OPTIONS, SORT OF A CONDENSED REVIEW OF THEM AND ALSO HAVE ON A SIDEBAR, THE LINK TO BUY THEM FROM DIFFERENT WEBSITES. ED: IF YOU BUY THAT LIPSTICK AND CLICK THROUGH CHATGPT. WHAT I FOUND INTERESTING IS OPENAI WON'T COLLECT AFFILIATE REVENUE FROM THAT TRANSACTION. SO WHAT IS YOUR UNDERSTANDING OF THE BUSINESS MODEL PLAN GOING FORWARD. RACHEL: RIGHT NOW IT'S LIKE A LOT OF THINGS THEY DO, THEY EXPAND THINGS AND TEST THINGS.
THEY COULD HAVE SOME IDEAS FOR HOW THEY WANT TO MAKE MONEY. I DON'T KNOW IN THE FUTURE THEY WILL ALSO NOT BE TAKING AFFILIATE REVENUE. THAT SURPRISED ME A BIT WHEN THEY SAID ARE YOU COULD MAKE MONEY OFF OF THIS BECAUSE THAT SEEMS LIKE A REALLY WAY TO MAKE SOME MONEY. LIKE PASSIVE INCOME STREAM. THEY WERE VERY CLEAR THEY WERE
NOT MAKING MONEY OFF OF AFFILIATE REVENUE SO WHEN PEOPLE BUY A PRODUCT. THEY ARE NOT ADS. CAROLINE: I THOUGHT THE LONG-TERM GOAL WAS MY AGENT WOULD GO OFF AND BUY EVERYTHING FOR ME. I WON'T HAVE TO CLICK OUT INTO A DIFFERENT WEBSITE PRINT IS THIS A STEPPINGSTONE. RACHEL: I THINK THERE WILL ULTIMATELY
BE A BUNCH OF DIFFERENT WAYS PEOPLE WANT TO BUY THINGS. I THINK THAT IT'S POSSIBLE AT SOME POINT IT WILL BE MUCH MORE COMMON FOR PEOPLE TO SAY I WANT THIS KIND OF THING GO BY IT. MASTERCARD IS TRYING OUT SOME WAYS TO DO PAYMENT THE AGENTS. WE CAN SEE THAT IN THE NEXT FEW YEARS.
WHAT WE ARE SEEING IS GIVING PEOPLE MORE OPTIONS TO STAY IN CHATGPT. ED: THANK YOU VERY MUCH INDEED. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." NASDAQ MUTED GAINS, BASICALLY FLAT.
SPOTIFY DOWN, AMAZON OUR TOP STORY OF THE DAY, THE WHITE HOUSE ACCUSING THEM OF HOSTILE ACTS, A REPORT THEY DENY.
2025-05-05 06:46
