WEBVTT - Nvidia Earnings and Twilio's New AI Tool 0:00:01.480 --> 0:00:06.760 From Marhard where Innovations, Money and Power Collie in Silicon Valley, NBN. 0:00:07.080 --> 0:00:11.120 This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 0:00:24.640 --> 0:00:27.160 I'm Caroline Hyde and Bloomberg's world headquarters in New York 0:00:27.680 --> 0:00:29.400 and Ourmed Ludlow in San Francisco. 0:00:29.560 --> 0:00:31.840 This is Bloomberg Technology. 0:00:31.440 --> 0:00:32.760 Coming up in Vidio. 0:00:33.120 --> 0:00:35.559 Boy Knock said out of the park with earnings that 0:00:35.680 --> 0:00:37.000 blow past estimates. 0:00:37.360 --> 0:00:39.960 Shares they're still at that all time high. We'll bring 0:00:39.960 --> 0:00:40.639 you the details. 0:00:41.440 --> 0:00:44.000 Class will have full market coverage and cover the other 0:00:44.040 --> 0:00:47.599 tech names reporting results like Snowflake and China's may Twine, 0:00:47.680 --> 0:00:47.959 and we. 0:00:47.960 --> 0:00:52.000 Talk all things artificial intelligence with CEO's of Twilio and 0:00:52.159 --> 0:00:55.480 Hugging Face. But we start with the AI story that 0:00:55.600 --> 0:00:57.440 is pervasive for the entire. 0:00:57.240 --> 0:00:58.360 Market there and in Vidio. 0:00:58.440 --> 0:01:00.440 Even though it comes off of its highs that we're 0:01:00.440 --> 0:01:02.600 trading what in excess of six percent higher earlier in 0:01:02.640 --> 0:01:04.759 the day, we're still at a record. We're up more 0:01:04.760 --> 0:01:08.880 than one, almost at two percentage points higher. But extraordiny 0:01:08.959 --> 0:01:10.880 where some of these price targets have been moved to 0:01:11.280 --> 0:01:14.520 one one hundred dollars one price target from Rosenblack. 0:01:14.560 --> 0:01:15.920 We're looking at four hundred seventy nine. 0:01:15.920 --> 0:01:18.880 This could still double Edits an amazing set of numbers. 0:01:19.959 --> 0:01:22.120 Yeah, let's get right to the numbers, right. This is 0:01:22.160 --> 0:01:25.480 the third consecutive quarter where Nvidia's guidance for the current 0:01:25.520 --> 0:01:28.440 fiscal quarter was way ahead of expectations. 0:01:28.760 --> 0:01:29.479 Revenue in the. 0:01:29.400 --> 0:01:32.520 Fiscal third will be sixteen billion dollars plus or minus 0:01:32.560 --> 0:01:34.400 two percent, as you see on your screen. 0:01:34.480 --> 0:01:36.280 In the second quarter just gone. 0:01:36.480 --> 0:01:40.000 Data center is everything ten point three billion, way past 0:01:40.040 --> 0:01:42.520 the expectations of almost eight billion. And if you look 0:01:42.560 --> 0:01:44.680 at the commentary Carrow, the growth is coming from the 0:01:44.800 --> 0:01:48.360 United States. It's the hyperscalers in the enterprise company. But 0:01:48.440 --> 0:01:51.320 it was also interesting to note that China accounted for 0:01:51.400 --> 0:01:54.440 twenty to twenty five percent of data center revenue, which 0:01:54.480 --> 0:01:56.360 is well within its historic range. 0:01:56.800 --> 0:01:59.080 I mean, the fact that we're seeing it firing on 0:01:59.160 --> 0:02:01.080 all these cylinders, whether or not we're seeing it at 0:02:01.120 --> 0:02:03.800 being a data center story. I thought what was interesting 0:02:03.800 --> 0:02:06.760 in a Morgan Stanley note just saying the pervasiveness of 0:02:06.840 --> 0:02:09.880 the small companies, small cloud providers that want to be 0:02:09.919 --> 0:02:12.680 in on an AI, not just the huge hyperscalers as well. 0:02:12.760 --> 0:02:15.480 Yes, it's a really good point because for example, AMD, 0:02:15.600 --> 0:02:19.000 a competitor, right opened up two percent in this morning's open. 0:02:19.040 --> 0:02:21.720 It's now down almost eight percent, a swing of ten percent. 0:02:22.080 --> 0:02:25.600 The market sees yields rising ahead of Jackson Hole, but 0:02:25.720 --> 0:02:28.440 how much of that is the strength in response on Nvidia? 0:02:28.720 --> 0:02:31.320 You know they are direct competitors for GPUs in the 0:02:31.360 --> 0:02:34.560 service space. In Vidia, You're right, it's off session highs. 0:02:34.639 --> 0:02:37.640 What's so interesting in that Morgan Stanley note, By Morgan 0:02:37.720 --> 0:02:40.920 Stanley's estimation, in Vidia is only meeting fifty percent of 0:02:40.960 --> 0:02:43.320 the demand that's out there. So when they talk up 0:02:43.320 --> 0:02:46.560 supply improving as well, it gives confidence that the outlook 0:02:46.680 --> 0:02:47.720 longer term is strong. 0:02:47.919 --> 0:02:49.880 And I think you've raised this point and it's one 0:02:50.120 --> 0:02:53.880 worth dwelling on the analyst reaction the price targets one 0:02:53.919 --> 0:02:56.040 after another being raised or. 0:02:56.080 --> 0:02:59.919 No single sell on this stock. Just look at that graphic. 0:03:00.960 --> 0:03:04.040 Values tripled beyond three a trillion dollars of market cap. 0:03:04.120 --> 0:03:07.280 The final sell final analyst throwed in through in the 0:03:07.280 --> 0:03:09.639 tow which was morning Star really quick. They did give 0:03:09.720 --> 0:03:12.240 us a note of caution and said on China that 0:03:12.400 --> 0:03:16.000 even if US technology export restrictions are increased in the 0:03:16.040 --> 0:03:18.880 near term, there won't be an immediate effect, why because 0:03:18.919 --> 0:03:21.560 demand around the world for the HGX server designs is 0:03:21.600 --> 0:03:26.360 so great. But long term they called it basically the 0:03:26.480 --> 0:03:29.320 removal of opportunity and what is the world's key market 0:03:29.639 --> 0:03:32.560 for data center and also electronics, So China is a 0:03:32.560 --> 0:03:33.320 long term question. 0:03:33.400 --> 0:03:35.640 Yeah, yeah, and is for armholdings as we approach that 0:03:35.640 --> 0:03:38.320 particular IPO, and it is for this particular company as well, 0:03:38.360 --> 0:03:39.680 the exposure to the demand there. 0:03:40.600 --> 0:03:40.920 Yeah. 0:03:41.000 --> 0:03:42.520 Well, we got the numbers out the way, but I 0:03:42.560 --> 0:03:45.040 think we have to look forward. Let's bring in JP Scandalios, 0:03:45.040 --> 0:03:48.160 Franklin Equity Group portfolio manager one hundred and twenty five 0:03:48.160 --> 0:03:50.640 billion dollars in assets, and you guys hold and video 0:03:51.000 --> 0:03:53.560 across multiple funds. Let's just start with the simple question, 0:03:53.880 --> 0:03:55.360 what was your take from this? 0:03:55.400 --> 0:03:57.160 In Nvidia earnings print. 0:03:57.480 --> 0:04:00.600 Certainly and thank you for having me. As you guys 0:04:00.640 --> 0:04:03.120 alluded to, you went through the numbers that kind of growth, 0:04:03.160 --> 0:04:06.400 we just we just don't see eighty eight percent sequential 0:04:06.440 --> 0:04:10.040 growth and one hundred and forty one percent quench growth 0:04:10.040 --> 0:04:12.840 in that all important data center business that you referenced, 0:04:12.840 --> 0:04:17.000 which is now seventy six percent of total revenues five 0:04:17.080 --> 0:04:19.320 ten years ago, and I've been covering the group for 0:04:19.320 --> 0:04:20.719 about thirty years. 0:04:21.160 --> 0:04:22.039 Five ten years. 0:04:21.839 --> 0:04:23.960 Ago in the video was a gaming company and now, 0:04:24.000 --> 0:04:27.520 as you said, it's all about data center. So there's 0:04:27.520 --> 0:04:33.719 two things here, right, fundamentals outstanding, huge beat huge rays. 0:04:33.760 --> 0:04:36.080 It's like The Godfather too, the sequel was as good 0:04:36.160 --> 0:04:40.800 as the predecessor. So nothing there, and I think Abigail 0:04:40.839 --> 0:04:44.120 alluded to it. There was a lot of you if 0:04:44.120 --> 0:04:46.520 you had been paying attention, I'm sure you were during 0:04:46.560 --> 0:04:51.120 the quarter. Expectations we're so so high, and there's a 0:04:51.160 --> 0:04:54.800 lot of people who get uncomfortable with parabolic growth like this. 0:04:55.480 --> 0:04:59.120 We're much more comfortable on Wall Street with steady or 0:04:59.560 --> 0:05:03.640 linear growth, and this kind of growth. People optically right 0:05:03.640 --> 0:05:06.960 away say well, this can't continue, and certainly there is 0:05:07.000 --> 0:05:09.960 a law of large numbers. But they are so well 0:05:10.000 --> 0:05:16.919 positioned for the foreseeable future. I suspect fundamentals will remain 0:05:17.000 --> 0:05:19.880 very strong, and ed you mentioned it, they conveyed that 0:05:19.920 --> 0:05:22.880 they're getting additional capacity and they have more demand than 0:05:22.920 --> 0:05:24.239 they know than they can address. 0:05:24.560 --> 0:05:28.680 I'm interested more broadly with the fact that the competition. 0:05:29.040 --> 0:05:31.400 Is this why we're seeing the likes of MD fall off. 0:05:31.440 --> 0:05:33.560 Are people feeling that really this is the winner that 0:05:33.640 --> 0:05:36.320 takes all or is that more a sign of market 0:05:36.360 --> 0:05:37.960 and gyrations that's happening on the day. 0:05:38.960 --> 0:05:40.239 I think it's the former. 0:05:40.400 --> 0:05:41.520 I think. 0:05:42.880 --> 0:05:46.719 Lisas who has done an excellent job at AMD, and 0:05:46.760 --> 0:05:50.400 I think AMD, given their limited resources, went after the 0:05:50.480 --> 0:05:53.560 CPU and especially the data center CPU market first, and 0:05:53.600 --> 0:05:56.560 they're doing really nicely. They're a relative to Intel, especially 0:05:56.600 --> 0:05:58.960 when you compare it to again five or ten years ago. 0:05:59.839 --> 0:06:02.880 I think now they've just gotten with their I three hundred. 0:06:03.279 --> 0:06:08.080 They're coming into the data center GPU market and the 0:06:08.200 --> 0:06:11.600 issue is can they gain some share? And I think 0:06:11.600 --> 0:06:15.159 there was some expectation throughout the quarter as that product 0:06:15.240 --> 0:06:17.960 comes to market that they would gain share. They're not, 0:06:18.120 --> 0:06:20.040 you know, the killer of Nvidia, but they're going to 0:06:20.080 --> 0:06:22.839 gain some share. And I think with such strong results 0:06:22.839 --> 0:06:25.880 from Nvidia, and not just the results but the guidance 0:06:25.920 --> 0:06:29.040 of course, but also their product lineup, they're just canvassing 0:06:29.160 --> 0:06:33.880 between inferencing and training, between the networking on the Finneban 0:06:34.040 --> 0:06:36.800 side and Ethernet that I think some investors who are 0:06:36.800 --> 0:06:39.599 saying this is going to be a real uphill battle 0:06:40.520 --> 0:06:43.280 climb for AMD, that'd be my guess. 0:06:43.400 --> 0:06:45.760 I mean, and it feels as though many a betting 0:06:45.760 --> 0:06:48.200 in video is the only picks and shovels out there 0:06:48.200 --> 0:06:51.320 at the moment, but only from a product perspective of offering, 0:06:51.360 --> 0:06:53.760 but just the breadth of where their customers are coming from. 0:06:54.160 --> 0:06:56.480 That's why the level of Intel's so key. Caroline right, 0:06:56.520 --> 0:06:59.000 just I'm really sorry to interrupt JP. Just point out 0:06:59.040 --> 0:07:01.840 one thing, you know, loads analysts ask collect cress, give 0:07:01.920 --> 0:07:04.880 us detail which product, right, is it H one hundred. 0:07:04.920 --> 0:07:08.400 It's broadly HGX server tip right, And I think Jensen 0:07:08.400 --> 0:07:10.440 made the point that, you know, H one hundred is 0:07:10.480 --> 0:07:13.560 not just a single chip, it has a trillion transistors 0:07:13.800 --> 0:07:15.920 in combination. You don't just sort of hand it over 0:07:16.280 --> 0:07:18.880 to the customers. But did you hear enough from them 0:07:19.120 --> 0:07:22.440 that the pipeline of future products maintains that technology lead? 0:07:22.520 --> 0:07:24.360 JP? You know I did. 0:07:24.440 --> 0:07:27.600 I think HGX is just getting started, right, and Grace 0:07:27.920 --> 0:07:31.960 on its own, and Grace Hopper CPUGPU combination is just 0:07:32.040 --> 0:07:37.200 coming to market now. There are Ethernet product Spectrum just 0:07:37.240 --> 0:07:41.160 coming to market, Bluefield their DPU Bluefield three kind of 0:07:41.320 --> 0:07:43.920 just getting going. And then you add on top of 0:07:43.920 --> 0:07:48.200 that all their software offerings. So yes, I don't think 0:07:48.240 --> 0:07:50.640 this was like, Okay, that's the game over and now 0:07:50.720 --> 0:07:53.720 time to move on. And Carolyn brings up a great point. 0:07:54.200 --> 0:07:59.160 To some degree, there's just not many AI companies, especially 0:07:59.200 --> 0:08:06.280 generated A companies that are monetizing this robust trend today, 0:08:06.400 --> 0:08:08.920 and so there is a scarcity value there. 0:08:10.480 --> 0:08:10.720 JP. 0:08:10.840 --> 0:08:12.400 I think we need to look at what collect Cress 0:08:12.480 --> 0:08:15.480 had to say about China long term that if you 0:08:15.520 --> 0:08:20.000 know US X technology export controls are in place long term, 0:08:20.080 --> 0:08:23.480 she's calling it a lots of opportunity in that market 0:08:23.520 --> 0:08:28.000 the US semiconductor maker is how seriously do you take 0:08:28.040 --> 0:08:28.560 that warning? 0:08:29.400 --> 0:08:32.440 I take it very seriously. I've done several meetings with 0:08:32.520 --> 0:08:35.679 in a podcast with Chris Miller, who wrote the book 0:08:35.960 --> 0:08:42.240 Chapurs that has often cited, and there's public funds we 0:08:42.320 --> 0:08:47.040 own GSMC as well. It's one of my major concerns 0:08:47.160 --> 0:08:52.240 just because very difficult to analyze the political back and 0:08:52.280 --> 0:08:56.200 forth between China and the US and how far our 0:08:56.240 --> 0:08:58.679 government will go and how far their government will go. 0:08:59.200 --> 0:09:02.480 And so to your point, I try to address it 0:09:02.559 --> 0:09:06.840 with adjusting my terminal growth rate, because as you say, 0:09:07.120 --> 0:09:11.600 if you take out that economy and that market, certainly 0:09:11.640 --> 0:09:15.760 it will be a lower terminal growth rate over time, 0:09:15.840 --> 0:09:19.120 and it's just a we will see what happens, but 0:09:19.880 --> 0:09:22.520 certainly something to follow, as if we don't have enough 0:09:22.520 --> 0:09:26.000 to follow. In the semiconductor industry, another thing to watch 0:09:26.080 --> 0:09:27.160 very closely. 0:09:27.000 --> 0:09:27.640 Well said. 0:09:27.840 --> 0:09:30.960 One thing that many an investor was following was the 0:09:30.960 --> 0:09:36.199 buyback enormous Where else could they should they be allocating 0:09:36.240 --> 0:09:38.600 that money at these sorts of price points to be 0:09:38.679 --> 0:09:40.719 buying back their stock? Is it because they believe the 0:09:40.760 --> 0:09:43.160 stock has got yet further to run, as some analysts do. 0:09:43.520 --> 0:09:44.640 Why not more in R and D? 0:09:46.280 --> 0:09:48.480 So they spend they already spend a lot hot well, 0:09:48.640 --> 0:09:51.080 a tremendous amount in R and D, And so I'm 0:09:51.080 --> 0:09:55.160 willing to give them a pass there if you will. 0:09:56.080 --> 0:09:58.880 I think what it says. One thing it says is 0:10:00.400 --> 0:10:03.800 M and A again going back to China, that M 0:10:03.840 --> 0:10:05.520 and A is going to be very difficult to get 0:10:05.520 --> 0:10:10.480 approved through all these regulatory bodies. And so you turn 0:10:10.520 --> 0:10:11.880 around and you say, well, what else can we do 0:10:11.960 --> 0:10:13.920 with it? Well, we have four billion left in our 0:10:13.960 --> 0:10:16.360 buy back. Let's add twenty five billion to that. I 0:10:16.400 --> 0:10:18.480 think it's sending a message to the market that they're 0:10:18.600 --> 0:10:21.880 very comfortable even at these prices, that their prospects are 0:10:21.920 --> 0:10:25.920 so strong and they outlook so positive that they're willing 0:10:25.960 --> 0:10:29.080 to buy back their shares, And you're right. It's again, 0:10:29.240 --> 0:10:34.440 it's like the results. The sticker tag is a massive number, 0:10:34.720 --> 0:10:36.960 but you're talking about a one point one trillion dollar 0:10:37.040 --> 0:10:39.400 market cap company. So at the end of the day, 0:10:39.480 --> 0:10:42.160 the number of shares that they'll actually buy back, it's 0:10:42.200 --> 0:10:44.600 great to see, don't get me wrong, but put it 0:10:44.600 --> 0:10:47.400 in a little context, I guess, yeah, hey. 0:10:47.240 --> 0:10:49.360 I have the stocks undervalue, or they got nothing to 0:10:49.400 --> 0:10:52.560 spend on JP scandalios the Frank collectority. Great to have 0:10:52.600 --> 0:10:53.760 you here on bloem. It's analogy. 0:11:01.280 --> 0:11:04.760 So further news, regarding, of course, the plane crash that 0:11:04.800 --> 0:11:09.280 presumably killed the Wagner founder Progosion, we're hearing from Putin 0:11:09.360 --> 0:11:14.680 himself saying an investigation into Progosion's death will be completed. Overall, 0:11:14.960 --> 0:11:18.680 he's saying overall that there are concerns and indeed an 0:11:18.760 --> 0:11:22.840 investigation will be completed, expressing condonencis over the Progosion jet 0:11:22.880 --> 0:11:26.160 crash and saying he was a talented man and a businessman. 0:11:26.840 --> 0:11:28.760 More on that global news throughout the day. 0:11:28.800 --> 0:11:32.000 But meanwhile, let's just return to technology and China's mag 0:11:32.080 --> 0:11:35.600 one in particular seeing its fastest pace of sales growth 0:11:35.760 --> 0:11:37.720 two years. That's like it's a large part to a 0:11:37.760 --> 0:11:40.800 rebound in dining, in travel demand. Bloomberg's Isabel Lee is 0:11:40.840 --> 0:11:43.600 here with more and for many that's a hard thing 0:11:43.640 --> 0:11:46.240 to swallow around all the narrative that China is slowing, 0:11:46.320 --> 0:11:49.000 the consumers weak, the housing crisis, the wealth crisis. 0:11:49.520 --> 0:11:52.079 It's kind of a good report and it takes some 0:11:52.160 --> 0:11:55.680 analysis because yes, the Chinese economy is slowing down, but 0:11:55.760 --> 0:11:58.880 because it's slowing down, consumers are shying away from big 0:11:58.880 --> 0:12:02.200 ticket items expensive so far something like that, and they're 0:12:02.679 --> 0:12:05.840 leaning more into the little pleasures of eating out or traveling. 0:12:05.880 --> 0:12:08.600 May to One is a giant in the delivery business, 0:12:08.640 --> 0:12:12.520 and this bounce back and travel and eating out really 0:12:12.760 --> 0:12:16.439 help its earnings dis quarter, especially after the COVID pandemic 0:12:16.440 --> 0:12:19.280 when we know that China had years of stringent lockdowns. 0:12:19.320 --> 0:12:22.959 So salesloras are better than expected at thirty three percent 0:12:23.160 --> 0:12:26.920 and may to One swung from an operating loss earlier 0:12:27.679 --> 0:12:30.440 a year earlier to an operating profit. So it's really 0:12:30.640 --> 0:12:33.520 good news for this report. But again we also focus 0:12:33.559 --> 0:12:36.040 on the outlook and the outlook is kind of shaky. 0:12:36.280 --> 0:12:40.480 Investors are saying that, you know, maybe we won't see 0:12:40.480 --> 0:12:41.280 the same growth. 0:12:41.400 --> 0:12:42.920 We are expecting a slowdown. 0:12:43.240 --> 0:12:45.520 So it's still kind of a double edged sword when 0:12:45.520 --> 0:12:47.840 it comes to these Chinese companies, But for now it's 0:12:48.120 --> 0:12:49.440 kind of good news, so we'll take it. 0:12:50.320 --> 0:12:52.840 Yeah, there's so much analogous with this May to One 0:12:52.880 --> 0:12:55.800 report and what we saw really playing up AI as well, 0:12:56.040 --> 0:12:59.119 while the macro conditions improve our big banks. To Bloomberg's 0:12:59.200 --> 0:13:01.839 Isabel Lee out in New York, another company we are watching, 0:13:01.880 --> 0:13:06.840 Cloud Software provide a snowflake displaying signs of caution after 0:13:06.920 --> 0:13:08.920 its sales out looked for the third quarter came in 0:13:08.960 --> 0:13:12.559 line with expectations. Bloomberg's Brodie Ford has everything on the 0:13:12.600 --> 0:13:14.959 software beat. Bradie, what's the story with Snowflake. 0:13:15.400 --> 0:13:18.320 Snowflake's one of those really interesting companies where it was 0:13:18.400 --> 0:13:21.120 just growing like crazy a year or two. We're talking, 0:13:21.200 --> 0:13:24.000 you know, doubling every year in terms of revenue. But 0:13:24.120 --> 0:13:26.679 of course, like every other software company out there, I 0:13:26.760 --> 0:13:29.080 hit this point where all of its customers said, WHOA, 0:13:29.280 --> 0:13:30.520 our budgets with you have. 0:13:30.559 --> 0:13:33.079 Grown insanely and so what's really. 0:13:32.960 --> 0:13:35.800 Been hitting Snowflake is something that's been hitting AWS or 0:13:35.800 --> 0:13:39.200 Microsoft Azure is that their customers are saying, how can 0:13:39.240 --> 0:13:41.640 we trim our bill a little bit? And that's really 0:13:41.679 --> 0:13:45.360 what's been impacting Snowflake. You know, they're still growing pretty heavily, right, 0:13:45.360 --> 0:13:48.400 I mean we're talking like about around thirty percent revenue growth, 0:13:48.880 --> 0:13:51.120 but at the end of the day, they're really having 0:13:51.200 --> 0:13:53.560 trouble with those big customers because they want to trim 0:13:53.559 --> 0:13:54.200 their budgets. 0:13:54.920 --> 0:13:58.920 It's interesting reading through the analyst reactions and Barkley is saying, look, 0:13:58.960 --> 0:14:01.240 after two quarters of life, we're down your guidance. The 0:14:01.280 --> 0:14:04.679 fact that's unchanged, yep, it is actually a pretty good sign. 0:14:04.800 --> 0:14:06.480 Why are we there for seeing a set off? Why 0:14:06.480 --> 0:14:10.239 are people seeing more caution around this than optimism instability? 0:14:10.720 --> 0:14:12.920 It's a good question because there's a funny dynamic. 0:14:13.280 --> 0:14:16.600 Where as you said, it's stabilized, and that's what Amazon said, 0:14:16.640 --> 0:14:18.920 and people loved it. They said, Okay, it's not getting worse, 0:14:18.960 --> 0:14:21.640 but it's stabilized. I think people just want to see 0:14:21.640 --> 0:14:25.000 a reacceleration. But something very funny that happened last night 0:14:25.160 --> 0:14:26.360 is the results came out. 0:14:26.440 --> 0:14:28.000 People said that I don't know about this. 0:14:28.200 --> 0:14:31.600 They were selling off then in video hit in vidio hit, 0:14:31.720 --> 0:14:34.520 and they had an insane result, and everyone said, oh man, 0:14:34.560 --> 0:14:36.200 I mean that's a good sign for AI. 0:14:36.360 --> 0:14:38.640 And you know what, Snowflake, they'll use that for AI. 0:14:38.800 --> 0:14:39.600 So it's all good. 0:14:39.640 --> 0:14:42.280 And so there's a lot of different factors here. Investors 0:14:42.280 --> 0:14:44.920 want to see growth come back, but sometimes this AI 0:14:45.040 --> 0:14:48.000 demand might be enough to bring Snowflake up with everybody else. 0:14:49.040 --> 0:14:53.120 Brady just having a great time after the ending spread track. 0:14:53.000 --> 0:14:53.720 In the aftermark. 0:14:53.760 --> 0:14:56.560 I mean, to your point, we opened four percent higher 0:14:56.600 --> 0:14:58.560 in this morning session of Snowflake, we're down three and 0:14:58.560 --> 0:15:01.400 a half percent and one point down, a big swing. 0:15:01.520 --> 0:15:04.160 A lot of that is the market broadly. Snowflake is 0:15:04.200 --> 0:15:07.360 like this layer on top of the hyper scalers, right 0:15:07.400 --> 0:15:09.280 on top of cloud, and they've been trying to tell 0:15:09.320 --> 0:15:12.680 an AI story that the market wants to make sense of. 0:15:12.800 --> 0:15:14.000 Have you made sense of it? 0:15:14.520 --> 0:15:16.720 So yeah, there's an interesting thing. Where As you said, 0:15:16.760 --> 0:15:20.280 Snowflake is a company that helps people organize their data 0:15:20.320 --> 0:15:22.080 and prepare it for multiple uses. 0:15:22.400 --> 0:15:23.960 One of those uses could be AI. 0:15:24.680 --> 0:15:27.560 Of course, every company that's back end data management right 0:15:27.560 --> 0:15:28.520 now is saying, hey. 0:15:28.400 --> 0:15:30.040 Hey, we'll help you with AI. Don't worry. 0:15:30.080 --> 0:15:32.200 We got you, And I think a lot of investors 0:15:32.200 --> 0:15:34.920 are saying, well, you can't all do this, And so 0:15:34.960 --> 0:15:36.840 that's kind of the question with Snowflake, right, I mean, 0:15:36.880 --> 0:15:39.640 do they have a really unique positioning as it relates 0:15:39.680 --> 0:15:40.120 to AI. 0:15:40.760 --> 0:15:43.760 Some people say they do. Some others would say no, no, no, 0:15:43.800 --> 0:15:45.800 we'll do it instead. So I think the jury is 0:15:45.840 --> 0:15:47.080 still all out on who really will be. 0:15:47.120 --> 0:15:50.440 Able to own this data organizational business as it relates 0:15:50.440 --> 0:15:53.400 to AI and training large language models, the. 0:15:53.320 --> 0:15:54.040 Pigs and shovels. 0:15:54.080 --> 0:15:56.160 The infrastructure is well and truly owned by one, but 0:15:56.360 --> 0:15:58.400 it feels as though the rest of being scribbled over 0:15:58.440 --> 0:16:01.560 when it comes to the software application prodi forward brilliant, 0:16:01.640 --> 0:16:03.800 Thank you so much. Meanwhile, coming up, look the impact 0:16:03.800 --> 0:16:06.200 of the SEC's crypto crackdown on one of the oldest 0:16:06.240 --> 0:16:07.600 digital asset exchanges. 0:16:08.440 --> 0:16:11.400 All the details next from San Francisco. I'm from New York. 0:16:11.640 --> 0:16:24.560 I'm sprinkling in Washington. This is bringing back technology. 0:16:32.600 --> 0:16:33.760 Time for talking tech. 0:16:33.840 --> 0:16:38.040 First up, Walmart is planning its longest distance drone deliveries 0:16:38.120 --> 0:16:40.680 yet by teaming up with Alphabet's Wing. It's going to 0:16:40.720 --> 0:16:43.520 be at two Dallas areas stores. They've got FDA approval 0:16:43.800 --> 0:16:46.800 to drop off food and other household essentials as far 0:16:46.880 --> 0:16:50.680 as six miles away from that store and vin Fast Auto. 0:16:50.760 --> 0:16:53.480 It is seeing a head scratching surge, giving the money 0:16:53.480 --> 0:16:57.680 losing ev startup a bigger market cap this time than 0:16:57.800 --> 0:17:01.400 City Group. By the way, fame shortshare seller Jim Chainos 0:17:01.480 --> 0:17:06.160 is even calling the stocks valuation quote insane. Plus Bitstamp, 0:17:06.240 --> 0:17:10.240 one of the oldest digital asset exchanges, will discontinue staking 0:17:10.320 --> 0:17:14.160 services in the US following a crackdown on their products 0:17:14.160 --> 0:17:18.399 by the SEC. The move takes effect on September twenty fifth. 0:17:18.440 --> 0:17:22.200 Caroline all eyes of course on that story and let's 0:17:22.240 --> 0:17:26.040 just dwell on it Frommtionnani Basek is here for more 0:17:26.080 --> 0:17:28.439 on that latest story and what's the read from market 0:17:28.440 --> 0:17:28.719 on it. 0:17:29.119 --> 0:17:30.639 The region of the market is that this is just 0:17:30.680 --> 0:17:33.720 another player here that you're seeing not able to engage 0:17:33.720 --> 0:17:36.480 in the staking service when we are watching a coinbase 0:17:36.720 --> 0:17:39.600 clearly fight the issue, and we've seen the volatility kind 0:17:39.600 --> 0:17:41.240 of a hover over the market when it comes to 0:17:41.359 --> 0:17:44.000 of course, this means more for ethereum than it does 0:17:44.080 --> 0:17:45.119 for say Bitcoin. 0:17:45.600 --> 0:17:47.960 However, without staking. 0:17:47.600 --> 0:17:50.520 You don't have that proof of stake model working out 0:17:51.040 --> 0:17:54.240 the way that the market was so excited for. Remember 0:17:54.240 --> 0:17:57.240 the exuberants that surrounded this kind of new model that 0:17:57.400 --> 0:18:00.480 was supposed to be less energy dependent than the mining history, 0:18:00.560 --> 0:18:04.040 that was supposed to potentially have more favorable economics for 0:18:04.160 --> 0:18:07.200 a wider array of people, given that the control would 0:18:07.200 --> 0:18:09.760 be changing in terms of the way that it is 0:18:09.800 --> 0:18:12.720 held over time. So a lot of questions for the 0:18:12.720 --> 0:18:16.359 model itself. But remember coinbase has been still sticking to 0:18:16.480 --> 0:18:19.880 the staking model. While we have seen now Kraken as 0:18:19.920 --> 0:18:21.720 well as Bitsdams start to throw on a towel. 0:18:22.600 --> 0:18:25.000 The other piece of news than headlines that we've seen 0:18:25.000 --> 0:18:27.800 across this morning is FTX court filings. What's the latest 0:18:27.800 --> 0:18:28.800 with FTX Shanami. 0:18:28.880 --> 0:18:31.040 Now, this is really interesting because you were watching them 0:18:31.080 --> 0:18:34.199 look to Galaxy. Remember this is still a bankruptcy process 0:18:34.240 --> 0:18:37.280 in which the FTX and John Jay had John Ray 0:18:37.320 --> 0:18:40.880 I'm sorry, had looked over and looked to Galaxy Asset Management. 0:18:40.920 --> 0:18:42.640 This is a business run by a fellow named Steve 0:18:42.760 --> 0:18:46.879 Kerz that would oversee a certain amount of assets. What 0:18:47.160 --> 0:18:50.320 happens from here, so a certain amount of these assets 0:18:50.440 --> 0:18:53.800 will be essentially liquidated and sold so that they could 0:18:53.800 --> 0:18:57.720 shore up money to pay the creditors back over at FTX. 0:18:58.359 --> 0:19:00.880 There is a fee that Galaxy would take, although from 0:19:00.920 --> 0:19:04.320 now until the court approval, things could definitely change from here. 0:19:04.640 --> 0:19:06.880 But there is an aspect of this as well where 0:19:06.920 --> 0:19:08.679 they don't want to get rid of that bitcoin and 0:19:08.720 --> 0:19:11.320 ether right away as well because the value in the 0:19:11.359 --> 0:19:13.520 price could change. So while a certain number of these 0:19:13.520 --> 0:19:15.960 tokens can be sold into the market, there will be 0:19:15.960 --> 0:19:18.800 a number here that are going to be held managed 0:19:18.840 --> 0:19:21.480 and hedged in order to maintain the most value for 0:19:21.480 --> 0:19:21.879 the firm. 0:19:22.440 --> 0:19:25.639 Remind us there have been some credits of frustrations, to 0:19:25.680 --> 0:19:28.280 say the least, about the fear that they were losing 0:19:28.280 --> 0:19:30.240 money because some of these assets weren't being. 0:19:30.119 --> 0:19:31.880 Sold off in a meticulous amount. 0:19:32.080 --> 0:19:34.000 Yeah, and the idea here is that they would give 0:19:34.040 --> 0:19:36.000 it to somebody who would have the ability to manage 0:19:36.040 --> 0:19:38.000 these assets in the most profitable way. At the end 0:19:38.000 --> 0:19:40.800 of the day, remember time value of money. If you're 0:19:40.840 --> 0:19:43.320 not getting your money back today, how long do you 0:19:43.320 --> 0:19:45.080 have to wait and what happens to those assets? It 0:19:45.119 --> 0:19:47.439 would Bitcoin, ether and some of these tokens continue to 0:19:47.440 --> 0:19:49.840 decline in value. That is of course a concern for 0:19:49.880 --> 0:19:52.560 the creditors, which is why they are holding some of 0:19:52.560 --> 0:19:55.040 that Bitcoin and ether and hedging the exposure rather than 0:19:55.119 --> 0:19:57.199 selling that off right away as they are looking to 0:19:57.200 --> 0:19:59.520 do with some of these other tokens. 0:19:59.800 --> 0:20:03.320 To mind ourselves, sorry, Carol Bloomberg Technology that the whole 0:20:03.320 --> 0:20:05.280