WEBVTT - Amazon Scores, Twitter Misses

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<v Speaker 1>You're listening to Bloomberg Business Week with Carol Messer and

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<v Speaker 1>Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. Well, let's

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<v Speaker 1>get to James Thompson, partner at buy Box Experts, former

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<v Speaker 1>business head of Amazon Web Services, your Amazon Services. Excuse me,

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<v Speaker 1>joining us on the phone from Seattle. Hey, James, UM,

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<v Speaker 1>let's go through these numbers here, because even though Charlie

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<v Speaker 1>talked about them just now, they are certainly worth repeating.

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<v Speaker 1>For Amazon, first quarter net sales beat estimates one eight

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<v Speaker 1>point five billion dollars, first quarter operative income beat estimates

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<v Speaker 1>one eight point nine billion dollars, Online stores net sales

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<v Speaker 1>fifty two point nine billion dollars, handily beating estimates there.

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<v Speaker 1>And then here's here's the big one. This is the

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<v Speaker 1>guidance sees second quarter net sales one billion to one

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<v Speaker 1>hundred sixteen billion. The estimate was one eight point three

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<v Speaker 1>five billions. So how's Amazon doing well? You give me,

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<v Speaker 1>you give me two minutes to look over the earnings numbers.

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<v Speaker 1>Welcome to my life. There you go. So a couple

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<v Speaker 1>of things thinking about for Q two. UM, Amazon is

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<v Speaker 1>likely going to do Prime Day at the end of June.

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<v Speaker 1>So that's going to count in the in the Q

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<v Speaker 1>two numbers. This is a holiday that Amazon invented, that

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<v Speaker 1>inspired by for inventing holidays, if it creates capitalism, invent

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<v Speaker 1>the holiday. So uh, yeah, that that's an Amazon holiday.

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<v Speaker 1>We're now in years five or six. Amazon's got most

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<v Speaker 1>of the kinks worked out in the system. Um, it's

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<v Speaker 1>interesting to see that they're moving it, but most likely

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<v Speaker 1>and again they haven't announced the exact date, but all

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<v Speaker 1>indications suggest that it's going to be before the end

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<v Speaker 1>of June. It's interesting that they're moving in a little

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<v Speaker 1>bit earlier. UM. And I think there's a few interesting

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<v Speaker 1>things that are that tell us that there may be

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<v Speaker 1>issues on the horizon. The fact that they're doing Prime

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<v Speaker 1>Day in June at the same time that we're seeing

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<v Speaker 1>Amazon placing big, big bets with brands. Uh. You know,

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<v Speaker 1>we're we're seeing Amazon placing six to nine months worth

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<v Speaker 1>of inventory orders all at once that they want to

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<v Speaker 1>make sure that those products get on the ships, get

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<v Speaker 1>into the United States, and get into their warehouses before

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<v Speaker 1>Q four. We haven't seen Amazon do this kind of

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<v Speaker 1>thing before. Uh. It's an interesting move. It means their

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<v Speaker 1>warehouses are going to be fuller than usual by the

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<v Speaker 1>time we get to the beginning of Q four. As

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<v Speaker 1>much as Amazon has been able to continue to build

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<v Speaker 1>out its facilities different fulfillment facilities, the reality is demand

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<v Speaker 1>for prime space from both vendors as well as through

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<v Speaker 1>party sellers. Everybody wants to be prime eligible that that's

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<v Speaker 1>that's the goal, and it's hard to keep up with

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<v Speaker 1>the demand and Amazon struggling I believe, to to keep up,

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<v Speaker 1>and that's going to create a situation where it come

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<v Speaker 1>Q four, a lot of these successful third party sellers

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<v Speaker 1>that have become completely reliant on FBA, on the Fulfillment

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<v Speaker 1>by Amazon program, they're going to find that they can't

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<v Speaker 1>get an inventory space. And I think we're going to

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<v Speaker 1>see a situation where between their continued recovery of the

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<v Speaker 1>ECONO of me as covid gets under control, and Amazon

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<v Speaker 1>struggling with inventory space. I think by the time we

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<v Speaker 1>get to queue four, that that's when we're going to

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<v Speaker 1>see that Amazon has actually um not been able to

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<v Speaker 1>keep up with the demand for its its marketplace. So

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<v Speaker 1>then what happens to Amazon's business. Do we get to

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<v Speaker 1>the time around the holidays this year and Amazon says, hey,

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<v Speaker 1>in order to actually get these products to you by

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<v Speaker 1>the time that you expect you need to order them

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<v Speaker 1>by this date, or is it is it something that's

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<v Speaker 1>that's more severe than that, that that you're actually not

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<v Speaker 1>able to find what you're looking for on Amazon and

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<v Speaker 1>it's not able to get to you. Well, let me

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<v Speaker 1>be clear, Amazon always puts the customer first, So I

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<v Speaker 1>don't think we're going to see customers being told that

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<v Speaker 1>you can't have this, or you you can have it,

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<v Speaker 1>but you're gonna wait much longer than usual. I think instead,

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<v Speaker 1>what we're going to see is companies that sell products

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<v Speaker 1>that aren't necessarily the absolute top selling items, they're going

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<v Speaker 1>to find it very difficult to get their products into

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<v Speaker 1>the Amazon warehouses. So consumers are likely going to be

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<v Speaker 1>moving to a model where you can have the best

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<v Speaker 1>selling product, but you can't have the fifth best selling

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<v Speaker 1>product or that that's best selling product. And you know

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<v Speaker 1>Amazon's all about choice. I want to be able to

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<v Speaker 1>go there to find everything I want. If I can't

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<v Speaker 1>find the purple pokadad version I need, where do I go? Well,

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<v Speaker 1>I don't know where to go after after looking at Amazon.

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<v Speaker 1>So that's that's one major trend I'm looking at and

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<v Speaker 1>I'm anticipating based on some of the stuff we're already

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<v Speaker 1>seeing with our first party and third party clients. Uh,

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<v Speaker 1>there are issues on the horizon at a time when

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<v Speaker 1>there's so much uncertainty and we're not necessarily hearing guidance

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<v Speaker 1>from every company out there that's reporting earnings. This quarter,

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<v Speaker 1>the company is saying that it's going to see net

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<v Speaker 1>sales from a hundred ten billion dollars to a hundred

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<v Speaker 1>and sixteen billion dollars, handily beating estimates that we're at

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<v Speaker 1>a hundred and eight point three five billion. This gets

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<v Speaker 1>to that central question of what life looks like on

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<v Speaker 1>the other side of the pandemic. It's something that Pinterest

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<v Speaker 1>talked about earlier this week. It's something that Twitter made

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<v Speaker 1>reference to in its own earnings that just came out

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<v Speaker 1>to what extent people continue to use the products they

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<v Speaker 1>used during the pandemic. Is Amazon to you in a

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<v Speaker 1>different position than other companies because it's p kind of

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<v Speaker 1>have been known to keep their habits when they when

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<v Speaker 1>they start to use Amazon products and services. I start

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<v Speaker 1>again with the customer, and I asked myself this question.

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<v Speaker 1>If I'm a customer and during the pandemic. All those

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<v Speaker 1>retailers I went to before the COVID started, I wasn't

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<v Speaker 1>interacting with those retailers. And by the way, a lot

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<v Speaker 1>of brands who are exclusively reliant on retailers to tell

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<v Speaker 1>their story to consumers, a lot of those brands were

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<v Speaker 1>hurt because the retailers weren't open or the retailers didn't

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<v Speaker 1>have well established e commerce in place for COVID. So

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<v Speaker 1>I then look at the alternative. I go to Amazon.

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<v Speaker 1>Guess what, I can find what I want on Amazon

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<v Speaker 1>and Amazon can market specifically to me and my needs

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<v Speaker 1>as a consumer. If I know that I can go

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<v Speaker 1>somewhere and Amazon is going to be looking out for

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<v Speaker 1>me and suggesting products that actually are relevant to me,

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<v Speaker 1>I can engage with the brand the brands that I

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<v Speaker 1>want on Amazon. That's pretty enticing when every other retailer

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<v Speaker 1>has struggled to be able to con tinue that discussion

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<v Speaker 1>with consumers during COVID. So the longer the short is,

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<v Speaker 1>I expect Amazon is going to continue to do very

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<v Speaker 1>well post COVID because consumers who either did or didn't

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<v Speaker 1>have Amazon experienced pre COVID, They're going to say, you

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<v Speaker 1>know what this experience is a whole lot more robust

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<v Speaker 1>than anything I can get with my local retailer. Yeah.

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<v Speaker 1>I like to go in and try stuff out, but

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<v Speaker 1>the reality is they always have my color, my size,

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<v Speaker 1>and they certainly aren't as good at making recommendations to

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<v Speaker 1>me as Amazon is. I'm wondering about other highlights from

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<v Speaker 1>the earnings report. Um, and I know you didn't necessarily

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<v Speaker 1>work on this when you were at Amazon, but Amazon

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<v Speaker 1>Web Services has certainly turned into an incredibly important part

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<v Speaker 1>of the company's business. I mean, essentially, starting out as

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<v Speaker 1>an experiment at the company, they invented a category there. Um.

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<v Speaker 1>Amazon Web Services revenue for the first quarter beat estimates.

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<v Speaker 1>It was thirteen point five billion dollars. Estimates were at

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<v Speaker 1>thirteen point nine billion dollars. Um. What is that telling

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<v Speaker 1>you about how Amazon is still able to eat those

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<v Speaker 1>estimates even though we're seeing increased competition from Microsoft and

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<v Speaker 1>earlier this week hearing from Google as well. Well. I'm

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<v Speaker 1>definitely not an a AWS expert by any means. One

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<v Speaker 1>of the key things to keep in mind here is

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<v Speaker 1>that as more and more companies realize that they need

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<v Speaker 1>to have an e commerce presence, even if they're not

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<v Speaker 1>selling on Amazon. They need to have the backbones, they

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<v Speaker 1>need to have the systems in place that allow them

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<v Speaker 1>to become e commerce relevant. And AWS helps brands to

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<v Speaker 1>become more efficient, helps them to host different types of

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<v Speaker 1>capabilities for consumers or customers. So Amazon is going to

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<v Speaker 1>continue to grow the whole process of how do they

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<v Speaker 1>communicate expectations and how do they manage that? You know,

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<v Speaker 1>that's an art that every company needs to figure out. Um,

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<v Speaker 1>we will continue to see more and more demand for AWS.

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<v Speaker 1>Now I think back to my time at Amazon. One

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<v Speaker 1>of the most impressive things about AWS was that they

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<v Speaker 1>are aggressively going out of their way to lower prices

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<v Speaker 1>as often as possible. That's an amazing model to have

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<v Speaker 1>to be in a position where you're trying to lower

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<v Speaker 1>the cost every consumer in this case business customer. Uh

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<v Speaker 1>And that's a model that not necessarily every other cloud

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<v Speaker 1>service company has been able to keep up with. You've

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<v Speaker 1>got this huge competitor called Amazon. They're aggressively lowering prices regularly,

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<v Speaker 1>and you're trying to grow to beat them, and you're

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<v Speaker 1>faced with a lower cost competitor every month. It's an

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<v Speaker 1>interesting model. So at the end of the day, AWS

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<v Speaker 1>will continue to grow and it continue to be a

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<v Speaker 1>big cash cow that helps to fund other parts of

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<v Speaker 1>the business um and even if they start to slow

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<v Speaker 1>down at some point, they are learning so much from

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<v Speaker 1>different types of customers about how to offer better services

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<v Speaker 1>to the next customer that needs an AWS capabilities. Amazon's

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<v Speaker 1>Amazon is going to be a major player for decades

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<v Speaker 1>to come in this space, James, I want to go

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<v Speaker 1>back to something that you talked about earlier and the

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<v Speaker 1>challenges that you potentially see Amazon having was specifically with

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<v Speaker 1>the Fulfilled by Amazon program later this year. It splain

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<v Speaker 1>what exactly it is and and because I don't think

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<v Speaker 1>consumers necessarily know that when they're ordering something on Amazon,

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<v Speaker 1>even though it does say, and some consumers do look

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<v Speaker 1>where it's coming from, it's not necessarily coming from Amazon.

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<v Speaker 1>Many many, many three or third party sellers. Rather than

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<v Speaker 1>fulfilling the orders themselves, they will ship products in bulk

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<v Speaker 1>into Amazon's warehouses, and Amazon will actually do the order

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<v Speaker 1>fulfillment when the customer places the order. So when you

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<v Speaker 1>buy that product from a third party seller on Amazon

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<v Speaker 1>and you magically get an Amazon branded box, that's because

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<v Speaker 1>the box actually came from an Amazon facility Amazon basically

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<v Speaker 1>serves as the warehouse and storage and order fulfillment service

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<v Speaker 1>for that third party seller. Well, there's only so much

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<v Speaker 1>facility space to put third party seller inventory. While Amazon

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<v Speaker 1>can scale up the number of orders they fulfilled, especially

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<v Speaker 1>in Q four, um, there is a physical limit to

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<v Speaker 1>how much inventory can be in a warehouse at any

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<v Speaker 1>given point. During my time at Amazon, we were regularly

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<v Speaker 1>had to deal with situations where in Q four whatever

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<v Speaker 1>warehouses were available were cloaks to capacity. Fast forward a

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<v Speaker 1>decade and now there's that many more facilities, but there's

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<v Speaker 1>that many more consumers that want products that are magically

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<v Speaker 1>delivered to them within one day or two days. That

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<v Speaker 1>requires Amazon to have this huge network of fulfillment centers,

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<v Speaker 1>but also Amazon to have what they now do, They

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<v Speaker 1>own the last mile delivery for somewhere north of of

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<v Speaker 1>all orders that are prime eligible here in the US. UM.

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<v Speaker 1>That's just a massive investment of capital. It's not a

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<v Speaker 1>it's not an exciting investment, but the reality is it

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<v Speaker 1>creates a huge moat an advantage for Amazon relative to

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<v Speaker 1>every other retailer and brand out there. So um, good

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<v Speaker 1>good good times. As a consumer, won't want you to

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<v Speaker 1>get stuff deliver to you fast, but it's hard for

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<v Speaker 1>Amazon to to make make that promise happen without continuing

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<v Speaker 1>to scale its business. Good times for shareholders as well.

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<v Speaker 1>James tom In, thanks so much for joining us. James

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<v Speaker 1>Thompson's a partner at buy Box Experts, our former business

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<v Speaker 1>head of Amazon Services, joins us on the phone from Seattle. Well,

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<v Speaker 1>we are making our way through Twitter earnings. The company

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<v Speaker 1>reported earnings per share and revenue just topping estimates, but

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<v Speaker 1>shares are sinking after lackluster sales and user outlooks. Joining

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<v Speaker 1>us now with more is Kurt Wagner, technology reporter who

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<v Speaker 1>covers Twitter for Bloomberg News, joining us on the phone

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<v Speaker 1>from San Francisco. Kurt uh, It's sort of seems like

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<v Speaker 1>there is a kind of like tale of two social

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<v Speaker 1>media and advertising supported companies here, right, there are the

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<v Speaker 1>facebooks and and and alphabets, right, and then there are

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<v Speaker 1>the Twitters and Pinterests. What's going on with Twitter? Well,

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<v Speaker 1>I think the biggest issue here is that Twitter has

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<v Speaker 1>always been what's called a brand advertiser. You know, they

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<v Speaker 1>get the big brands. You're familiar with, the same people

0:11:55.200 --> 0:11:57.800
<v Speaker 1>who are spending money on television, who like to be

0:11:57.840 --> 0:12:00.400
<v Speaker 1>involved with, you know, big events like the scurs of

0:12:00.480 --> 0:12:03.600
<v Speaker 1>the Olympics, but they're not very strong when it comes

0:12:03.640 --> 0:12:06.520
<v Speaker 1>to what has become the bulk of online advertising, which

0:12:06.520 --> 0:12:10.440
<v Speaker 1>is this direct response advertiser, right the small retailer who's

0:12:10.440 --> 0:12:12.720
<v Speaker 1>trying to target you very specifically to get you to,

0:12:13.000 --> 0:12:16.280
<v Speaker 1>you know, buy something. And so what we've seen over

0:12:16.320 --> 0:12:18.959
<v Speaker 1>the last year is that that direct response has really

0:12:19.240 --> 0:12:22.480
<v Speaker 1>blown up. We've seen Google and Facebook really capitalized as

0:12:22.520 --> 0:12:25.839
<v Speaker 1>all these businesses have gone online. And Twitter meanwhile, is

0:12:25.880 --> 0:12:27.880
<v Speaker 1>still kind of doing the same old brand stuff that

0:12:27.920 --> 0:12:30.040
<v Speaker 1>it's been doing historically, and I just don't think that

0:12:30.080 --> 0:12:32.920
<v Speaker 1>it's really reaping the same benefits that some of those

0:12:33.120 --> 0:12:36.520
<v Speaker 1>bigger companies are. Well. Shares down down more than nine

0:12:36.520 --> 0:12:39.840
<v Speaker 1>point six in the after hours. Is this all about guidance?

0:12:41.360 --> 0:12:43.640
<v Speaker 1>I think of guidance is a big part of it. Um.

0:12:43.679 --> 0:12:46.040
<v Speaker 1>You know, we saw that the numbers came in almost

0:12:46.120 --> 0:12:49.720
<v Speaker 1>exactly where everyone expected they would. Um, But for next

0:12:49.800 --> 0:12:53.440
<v Speaker 1>quarter they've said that, uh, they gave a revenue range

0:12:53.679 --> 0:12:56.240
<v Speaker 1>and the estimates are on the high end of that range.

0:12:56.240 --> 0:12:58.800
<v Speaker 1>In other words, that means Twitter has to basically hit

0:12:58.880 --> 0:13:01.079
<v Speaker 1>the very high end of of what it's giving people

0:13:01.080 --> 0:13:03.960
<v Speaker 1>in order to meet the expectations. So I do think

0:13:04.000 --> 0:13:06.240
<v Speaker 1>there's a little bit of disappointment there and that you

0:13:06.280 --> 0:13:08.719
<v Speaker 1>know what we saw again, Facebook and Google really come

0:13:08.720 --> 0:13:11.120
<v Speaker 1>out and say, hey, not only was cute one strong,

0:13:11.160 --> 0:13:13.480
<v Speaker 1>but we're expecting a good Q two as well. There's

0:13:13.520 --> 0:13:16.240
<v Speaker 1>a really good chance that Twitter might under deliver here, Kart,

0:13:16.280 --> 0:13:17.360
<v Speaker 1>I want to go back to what you said about

0:13:17.400 --> 0:13:19.520
<v Speaker 1>direct responsive. I'm me thinking about what I see in

0:13:19.520 --> 0:13:21.600
<v Speaker 1>my own Twitter timeline when it comes to ads and

0:13:21.559 --> 0:13:23.560
<v Speaker 1>and look full disclosure here, I spent way too much

0:13:23.600 --> 0:13:25.640
<v Speaker 1>time on Twitter, more time on Twitter than pretty much

0:13:25.640 --> 0:13:28.240
<v Speaker 1>any other app. One thing I noticed this week is like,

0:13:28.320 --> 0:13:30.600
<v Speaker 1>even until yesterday, I was still getting ads on the

0:13:30.600 --> 0:13:34.880
<v Speaker 1>mobile app for the Oscars, something that ended on Sunday.

0:13:34.960 --> 0:13:37.200
<v Speaker 1>And I'm thinking to myself, even before these earnings, I'm

0:13:37.200 --> 0:13:39.559
<v Speaker 1>thinking to myself, why is how is Twitter to the

0:13:39.600 --> 0:13:43.000
<v Speaker 1>point in not not smart enough? And I mean when

0:13:43.000 --> 0:13:44.520
<v Speaker 1>I say Twitter, I mean the app, Like, how is

0:13:44.559 --> 0:13:46.760
<v Speaker 1>the app not smart enough to show me something that's

0:13:46.760 --> 0:13:49.960
<v Speaker 1>more relevant? Well, it's really funny that you say that,

0:13:50.000 --> 0:13:52.800
<v Speaker 1>because I had that experienced a few weeks ago. I

0:13:52.840 --> 0:13:56.920
<v Speaker 1>started seeing ads promoting a baseball game that was over

0:13:57.400 --> 0:13:59.600
<v Speaker 1>h and had been over for a couple of days,

0:13:59.679 --> 0:14:02.760
<v Speaker 1>and I was, you know, similarly disappointed, right, like, who's

0:14:02.920 --> 0:14:06.640
<v Speaker 1>paying to promote a live event to me that is

0:14:06.679 --> 0:14:10.040
<v Speaker 1>no longer live, not only not live now, but has

0:14:10.080 --> 0:14:12.600
<v Speaker 1>happened days ago. And I don't have a good answer

0:14:12.640 --> 0:14:14.959
<v Speaker 1>for why that's the case, other than that, you know,

0:14:15.440 --> 0:14:19.160
<v Speaker 1>advertisers should be maybe paying closer attention to the timelines

0:14:19.200 --> 0:14:21.200
<v Speaker 1>of their campaigns. But you would think Twitter as well

0:14:21.600 --> 0:14:23.880
<v Speaker 1>would not want to show that kind of an ad right,

0:14:23.880 --> 0:14:26.120
<v Speaker 1>It's not very relevant, it's not helpful, certainly to you

0:14:26.240 --> 0:14:28.280
<v Speaker 1>or me. And so I think that that's, you know,

0:14:28.360 --> 0:14:30.080
<v Speaker 1>an example of the kind of thing that they could

0:14:30.080 --> 0:14:31.960
<v Speaker 1>certainly do a better job of. What about when it

0:14:31.960 --> 0:14:34.520
<v Speaker 1>comes to Twitter's product, because you and I've talked a

0:14:34.520 --> 0:14:36.880
<v Speaker 1>lot about this over the last few months, that Twitter

0:14:36.960 --> 0:14:40.080
<v Speaker 1>Investor Day and the way that the company h really

0:14:40.200 --> 0:14:42.840
<v Speaker 1>changed the way that investors were thinking up until then,

0:14:42.840 --> 0:14:45.560
<v Speaker 1>at least year to date, about the company's ambitions and

0:14:45.560 --> 0:14:47.640
<v Speaker 1>the company's ideas for the product. That Twitter is a

0:14:47.720 --> 0:14:52.080
<v Speaker 1>unique product and that it hasn't changed significantly apart from

0:14:52.120 --> 0:14:54.480
<v Speaker 1>the number of characters that you can really type out

0:14:54.480 --> 0:14:57.680
<v Speaker 1>on a tweet since the company was started more than

0:14:57.680 --> 0:14:59.720
<v Speaker 1>a decade ago. Um, what do we learned in the

0:14:59.760 --> 0:15:03.680
<v Speaker 1>earning about the company's thoughts on product Well, that could

0:15:03.680 --> 0:15:07.280
<v Speaker 1>also be I would think um construed as a disappointing

0:15:07.360 --> 0:15:09.600
<v Speaker 1>thing about this earnings report is that there's really not

0:15:09.760 --> 0:15:11.960
<v Speaker 1>much new in here at all. Um. You know, we

0:15:12.040 --> 0:15:15.160
<v Speaker 1>talked about subscriptions as being something that Twitter is looking into.

0:15:15.200 --> 0:15:18.800
<v Speaker 1>There's no updates on subscriptions and their shareholder letter obviously

0:15:18.800 --> 0:15:21.840
<v Speaker 1>Twitter spaces their audio chat room. This is the clubhouse

0:15:22.040 --> 0:15:26.280
<v Speaker 1>competitor right now. Yeah, it's a clubhouse competitor. It's it's UM.

0:15:26.320 --> 0:15:28.960
<v Speaker 1>I think it's actually better position just because there's so

0:15:29.000 --> 0:15:31.520
<v Speaker 1>many people on Twitter will already have a following, UM

0:15:31.560 --> 0:15:33.800
<v Speaker 1>that you know, for someone like me, it works better

0:15:33.840 --> 0:15:35.840
<v Speaker 1>than clubhouse because I don't have to start from scratch.

0:15:36.200 --> 0:15:39.840
<v Speaker 1>But again, no update in the shareholder letter about spaces either,

0:15:40.000 --> 0:15:43.120
<v Speaker 1>And so I just think, like the kinds of things

0:15:43.200 --> 0:15:45.520
<v Speaker 1>that might get someone excited about the future of Twitter,

0:15:45.600 --> 0:15:48.080
<v Speaker 1>we're not really mentioned in this letter. And then you

0:15:48.120 --> 0:15:50.040
<v Speaker 1>couple that with the fact that you know they're they're

0:15:50.080 --> 0:15:53.920
<v Speaker 1>kind of announcing some lackluster projections for next quarter. I

0:15:53.920 --> 0:15:57.440
<v Speaker 1>think that's maybe a combination of what we're seeing here.

0:15:57.600 --> 0:15:59.480
<v Speaker 1>In fifteen seconds, what are you gonna be listening for

0:15:59.480 --> 0:16:03.000
<v Speaker 1>on the earnings call? I am going to be listening

0:16:03.040 --> 0:16:04.920
<v Speaker 1>for some of those product updates. I want to know,

0:16:05.400 --> 0:16:08.920
<v Speaker 1>you know, how spaces is going. Are they getting interested

0:16:08.920 --> 0:16:10.720
<v Speaker 1>in more M and A? And then you know, are

0:16:10.760 --> 0:16:13.280
<v Speaker 1>they getting ready for a newsletter? Subscription? Businesses are all

0:16:13.400 --> 0:16:16.080
<v Speaker 1>new lines of revenue that they could have, and I

0:16:16.080 --> 0:16:18.480
<v Speaker 1>think that would be interesting given their their situation with

0:16:18.520 --> 0:16:20.680
<v Speaker 1>ads right now. Kurt, I know you are swamped. Thank

0:16:20.680 --> 0:16:22.320
<v Speaker 1>you so much for taking the time stepping away from

0:16:22.320 --> 0:16:25.440
<v Speaker 1>crunching those numbers. I really appreciate it. Thanks for joining

0:16:25.520 --> 0:16:28.560
<v Speaker 1>us at Kurt Wagner, technology reporter at Bloomberg News, joining

0:16:28.600 --> 0:16:30.400
<v Speaker 1>us on the phone from San Francisco,