1 00:00:13,039 --> 00:00:15,520 Speaker 1: And Caroline hired up Blougs World headquarters in New York, 2 00:00:15,880 --> 00:00:19,160 Speaker 1: and I made Lovelow in San Francisco. This is Bloomberg Technology. 3 00:00:19,239 --> 00:00:23,400 Speaker 1: Three giants of global technology, Caroline three very disappointing earnings 4 00:00:23,440 --> 00:00:26,200 Speaker 1: reports and will that put an end to quite the 5 00:00:26,280 --> 00:00:28,320 Speaker 1: run up in tech stocks that we've been seeing. Ed, 6 00:00:28,400 --> 00:00:31,000 Speaker 1: let's get to it. The juggernaut that is Apple. It 7 00:00:31,080 --> 00:00:35,720 Speaker 1: reports its first revenue declines fully short, almost across the 8 00:00:35,760 --> 00:00:39,840 Speaker 1: board product wise, plus the rally stores. As Caroline said 9 00:00:39,880 --> 00:00:43,280 Speaker 1: in after hours, with Alphabet feeling the slowdown in ad spend, 10 00:00:43,320 --> 00:00:47,360 Speaker 1: we speak to the CFO and Amazon projects lackluster sales 11 00:00:47,400 --> 00:00:51,440 Speaker 1: and slower cloud unit growth shares. They're also falling after hours. 12 00:00:51,640 --> 00:00:54,080 Speaker 1: Let's get straight back to Apple and bringing Julia Arsk, 13 00:00:54,280 --> 00:00:57,240 Speaker 1: principal analysts at Forrester Research. You look at the numbers, 14 00:00:57,400 --> 00:01:00,960 Speaker 1: the sort of more deep weak this in that holiday 15 00:01:01,040 --> 00:01:04,160 Speaker 1: quarter for Apple. Perhaps it was that some new products 16 00:01:04,160 --> 00:01:06,520 Speaker 1: weren't released until the new year. What was your takeaway 17 00:01:06,520 --> 00:01:10,600 Speaker 1: from the print? So my takeaway was is, you know, 18 00:01:10,640 --> 00:01:13,400 Speaker 1: I'm not a financial analyst, but are certainly our expect 19 00:01:13,440 --> 00:01:16,240 Speaker 1: Tachens is that sales would be lower. If we look 20 00:01:16,240 --> 00:01:19,199 Speaker 1: at our data from consumers. We have seventy one percent 21 00:01:19,280 --> 00:01:21,880 Speaker 1: of consumers today in the United States that are concerned 22 00:01:21,880 --> 00:01:24,520 Speaker 1: about the general state of the economy. Those numbers are 23 00:01:24,560 --> 00:01:27,319 Speaker 1: even higher in Europe. We have thirty eight percent of 24 00:01:27,360 --> 00:01:31,200 Speaker 1: consumers who are cutting back spending on non essential goods. 25 00:01:31,680 --> 00:01:33,840 Speaker 1: And while we did have a holiday forecast that was 26 00:01:33,920 --> 00:01:38,319 Speaker 1: up in the United States six point one one, a 27 00:01:38,319 --> 00:01:41,720 Speaker 1: lot of that was still fueled by inflation. So all 28 00:01:42,000 --> 00:01:43,640 Speaker 1: you know, savings rates are down. There's a lot of 29 00:01:43,680 --> 00:01:46,840 Speaker 1: economic concerns that consumers have today. So that's that's one 30 00:01:46,840 --> 00:01:50,280 Speaker 1: of the factors that's impacting the near term. And talk 31 00:01:50,360 --> 00:01:55,280 Speaker 1: to us about whether really this is a focus on 32 00:01:55,440 --> 00:01:59,320 Speaker 1: services that will eventually bear fruit in that respect overall 33 00:01:59,360 --> 00:02:02,360 Speaker 1: g because we have despite some of the misses that 34 00:02:02,400 --> 00:02:05,680 Speaker 1: we're seeing compared to analyst expectations. The CEO, Tim Cook, 35 00:02:05,760 --> 00:02:08,600 Speaker 1: the CFO really trying to talk about the strength and resilience, 36 00:02:08,639 --> 00:02:11,480 Speaker 1: the amount of two billion products in people's hands, the 37 00:02:11,520 --> 00:02:14,720 Speaker 1: fact that services a record revenue rate. Is that something 38 00:02:14,720 --> 00:02:18,400 Speaker 1: to be optimistic about. I think it's there's act absolutely 39 00:02:18,440 --> 00:02:20,960 Speaker 1: it's something need to be optimistic about because one of 40 00:02:20,960 --> 00:02:23,680 Speaker 1: the other long term factors we haven't talked about is 41 00:02:23,760 --> 00:02:27,760 Speaker 1: very intentionally Apple, like other smartphone manufacturers, right, these smartphones 42 00:02:27,800 --> 00:02:31,200 Speaker 1: is their number one source of revenue, are intentionally building 43 00:02:31,200 --> 00:02:34,160 Speaker 1: devices that consumers can keep for longer. Right, There's more 44 00:02:34,200 --> 00:02:37,800 Speaker 1: focus on sustainability, There's more focus on a consumer's right 45 00:02:37,880 --> 00:02:41,600 Speaker 1: to repair the device, their supporting devices for longer periods 46 00:02:41,639 --> 00:02:45,000 Speaker 1: of time. So as we focus on some of these 47 00:02:45,120 --> 00:02:47,920 Speaker 1: environmental factors, as we look into the future, consumers are 48 00:02:47,960 --> 00:02:51,000 Speaker 1: going to have also slower upgrade times. So Apple will 49 00:02:51,040 --> 00:02:53,720 Speaker 1: have to look to building out an ecosystem and products 50 00:02:53,760 --> 00:02:56,840 Speaker 1: and being more focused on their services revenue, which granted 51 00:02:56,919 --> 00:02:59,160 Speaker 1: is a smaller proportion of their overall revenue, but certainly 52 00:02:59,240 --> 00:03:02,280 Speaker 1: their highest margin business. Julie, I want to go back 53 00:03:02,280 --> 00:03:05,359 Speaker 1: to this idea of new products and timing. Right, we 54 00:03:05,520 --> 00:03:07,600 Speaker 1: write in our Bloomberg News story that it's a tough 55 00:03:07,639 --> 00:03:11,560 Speaker 1: comparison because in the holiday quarter of one, Apple would 56 00:03:11,560 --> 00:03:13,800 Speaker 1: come out with a new line of MacBooks. They didn't 57 00:03:13,880 --> 00:03:17,440 Speaker 1: do that in two. How how dependent is Apple and 58 00:03:17,520 --> 00:03:20,920 Speaker 1: churning out generation off the generation of new hardware to 59 00:03:21,080 --> 00:03:25,040 Speaker 1: drive that sales growth, to drive the interest Absolutely they 60 00:03:25,040 --> 00:03:28,680 Speaker 1: are we I mean, I look not only looking at 61 00:03:28,760 --> 00:03:31,079 Speaker 1: let's say the MacBook cycle, whether it's a tablet cycle, 62 00:03:31,120 --> 00:03:34,239 Speaker 1: and most importantly the smartphone cycle, weren't in every six 63 00:03:34,320 --> 00:03:36,760 Speaker 1: months of one of their largest competitors, which is Samsung, 64 00:03:36,800 --> 00:03:39,800 Speaker 1: which had which you know, rolled out a news device yesterday. 65 00:03:40,000 --> 00:03:43,280 Speaker 1: But literally they need to have the next, latest and 66 00:03:43,360 --> 00:03:46,920 Speaker 1: greatest thing every year with every one of these product 67 00:03:46,960 --> 00:03:50,960 Speaker 1: lines because they've got really stiff competition coming from other geographies. 68 00:03:51,360 --> 00:03:54,880 Speaker 1: And Apple has a very strong focus on this profitability. 69 00:03:55,120 --> 00:03:57,120 Speaker 1: It doesn't have as big of a product line as 70 00:03:57,160 --> 00:03:59,280 Speaker 1: some of its competitors can do, where they may be 71 00:03:59,360 --> 00:04:02,880 Speaker 1: able to sell devices, uh not the same profit margins 72 00:04:02,920 --> 00:04:05,680 Speaker 1: or any profit at all. So absolutely, you know, you 73 00:04:05,680 --> 00:04:07,880 Speaker 1: look at factors like R and D and bringing people 74 00:04:07,880 --> 00:04:10,160 Speaker 1: back to the office and innovation like all of that 75 00:04:10,320 --> 00:04:14,120 Speaker 1: is key. Absolutely, product releases, new product releases, not only 76 00:04:14,200 --> 00:04:16,440 Speaker 1: keeping up but like leap frogging ahead of the competition 77 00:04:16,480 --> 00:04:18,800 Speaker 1: with every one of these products is critical. And Urine 78 00:04:18,800 --> 00:04:20,919 Speaker 1: and you're out, and it's critical to be able to 79 00:04:20,960 --> 00:04:23,200 Speaker 1: make these products. Julie, and I know you're much more 80 00:04:23,240 --> 00:04:26,400 Speaker 1: focused on the consumer trends, the demand trends, rather than 81 00:04:26,440 --> 00:04:28,640 Speaker 1: say that my new shives supply chain over in China, 82 00:04:28,680 --> 00:04:30,559 Speaker 1: but supply chain has been a real headache for Apple, 83 00:04:30,720 --> 00:04:33,440 Speaker 1: particularly in the last quarter. We look at actually some 84 00:04:33,480 --> 00:04:37,840 Speaker 1: of their supply chain suffering after hours Skyworks TSMC down 85 00:04:38,040 --> 00:04:39,880 Speaker 1: and they've been down over the year and they're certainly 86 00:04:39,880 --> 00:04:43,279 Speaker 1: falling after hours as well. From your perspective, are you 87 00:04:43,360 --> 00:04:45,800 Speaker 1: hoping this is a company that can remain diversified to 88 00:04:45,800 --> 00:04:47,880 Speaker 1: be able to make the product at the right run 89 00:04:47,960 --> 00:04:51,279 Speaker 1: rate and get it into the hands that can customer. Yeah. 90 00:04:51,360 --> 00:04:53,840 Speaker 1: I think, you know, if you read through the quarter 91 00:04:53,839 --> 00:04:55,960 Speaker 1: of the reports and our reports, I think Apple has 92 00:04:55,960 --> 00:04:57,760 Speaker 1: a very good hand on the risk factors that are 93 00:04:57,760 --> 00:05:00,240 Speaker 1: in place, and I think everything to to you know, 94 00:05:00,240 --> 00:05:02,240 Speaker 1: trusting what Tim Cook is saying. Everything he's saying is 95 00:05:02,240 --> 00:05:04,919 Speaker 1: about diversifying the supply chain and lowering the risk of 96 00:05:05,000 --> 00:05:07,680 Speaker 1: being dependent on you know, one country in one geography 97 00:05:07,800 --> 00:05:10,320 Speaker 1: for so many critical components to go into their core devices. 98 00:05:10,360 --> 00:05:13,520 Speaker 1: I think absolutely it's important. We want to thank you 99 00:05:13,600 --> 00:05:17,680 Speaker 1: for us to research Principal analyst Julie Arsk fascinating across 100 00:05:17,720 --> 00:05:19,840 Speaker 1: the board in terms of all things Apple, and we've 101 00:05:19,839 --> 00:05:21,760 Speaker 1: got to make the pivot now because there were so 102 00:05:21,800 --> 00:05:24,600 Speaker 1: many key names and Daniel Newman is going to join 103 00:05:24,680 --> 00:05:26,760 Speaker 1: us now to dig in to the world of Alphabet 104 00:05:26,800 --> 00:05:29,880 Speaker 1: principal analyst over it for true and Research and just 105 00:05:30,680 --> 00:05:33,080 Speaker 1: we had a conversation this CFI let ed dig into 106 00:05:33,080 --> 00:05:35,520 Speaker 1: that because he really spoke to with poor your initial 107 00:05:35,560 --> 00:05:38,680 Speaker 1: takeaway on Alphabet, the worries about perhaps cloud growth and 108 00:05:38,839 --> 00:05:43,000 Speaker 1: really though trying to talk up their AI prows, right, Yeah, 109 00:05:43,000 --> 00:05:45,600 Speaker 1: I think there was mrs really across the board. And 110 00:05:45,640 --> 00:05:48,640 Speaker 1: this is an adjusted down guided silver lining though, Caroline 111 00:05:48,720 --> 00:05:51,920 Speaker 1: is I believe the fan wants to see things break 112 00:05:52,040 --> 00:05:54,600 Speaker 1: and so if we like that devish talk for the market, 113 00:05:54,720 --> 00:05:57,160 Speaker 1: we need to first see big companies that have been 114 00:05:57,279 --> 00:05:59,760 Speaker 1: running pretty successfully even through this downturn over the last 115 00:05:59,839 --> 00:06:03,479 Speaker 1: year or start to miss And so that's the silver lining. Um, 116 00:06:03,560 --> 00:06:06,919 Speaker 1: the AI talk is a massive consideration right now. You 117 00:06:06,960 --> 00:06:09,120 Speaker 1: can absolutely tell that Google is going to have to 118 00:06:09,160 --> 00:06:11,120 Speaker 1: lean in to deal with what Microsoft is doing with 119 00:06:11,160 --> 00:06:16,479 Speaker 1: its open AI commitment. UM, the cloud business, the advertising business, UM, 120 00:06:16,520 --> 00:06:19,880 Speaker 1: every part of the company is at risk if they 121 00:06:19,880 --> 00:06:24,200 Speaker 1: don't figure out a way to combat what Microsoft is doing. 122 00:06:24,520 --> 00:06:26,720 Speaker 1: So this is definitely gonna be part and you saw 123 00:06:26,760 --> 00:06:28,919 Speaker 1: that they even have new reporting that they're planning to 124 00:06:28,960 --> 00:06:32,640 Speaker 1: start in their new uh the reports coming up around 125 00:06:32,640 --> 00:06:35,000 Speaker 1: AI to give more clarity to their investors about how 126 00:06:35,000 --> 00:06:38,200 Speaker 1: that is is transpiring. So it was a tough quarter 127 00:06:38,480 --> 00:06:40,440 Speaker 1: for all these big tech names. But like I said, 128 00:06:40,440 --> 00:06:42,120 Speaker 1: I think the silver lining is in the fact that 129 00:06:42,200 --> 00:06:44,599 Speaker 1: starting to miss is the indication that we really have 130 00:06:44,880 --> 00:06:49,200 Speaker 1: maybe hit this bottoming period that people have been waiting for. Dan. 131 00:06:49,279 --> 00:06:50,920 Speaker 1: We're grateful to have you on the program and get 132 00:06:50,920 --> 00:06:52,919 Speaker 1: this quick reaction. As Karenine said, I've been on the 133 00:06:52,920 --> 00:06:56,280 Speaker 1: phone with CFO Reef Parratt, and you know she framed 134 00:06:56,279 --> 00:06:59,800 Speaker 1: this pretty quick, quickly and clearly, this is a reset. 135 00:06:59,839 --> 00:07:02,880 Speaker 1: We are committed to re engineering our cost base to 136 00:07:03,080 --> 00:07:05,680 Speaker 1: long term profitable growth. That was kind of her response 137 00:07:05,960 --> 00:07:08,760 Speaker 1: to the layoffs. Are you convinced by that? Is this 138 00:07:08,920 --> 00:07:11,680 Speaker 1: alphabet basically saying, Okay, this is the year of discipline. 139 00:07:12,960 --> 00:07:15,160 Speaker 1: I think this is a theme across tech. I think 140 00:07:15,160 --> 00:07:17,200 Speaker 1: these reduction and forces in layoffs. I think it's in 141 00:07:17,240 --> 00:07:19,800 Speaker 1: a moment where all the companies are taking to reset. 142 00:07:20,040 --> 00:07:22,440 Speaker 1: I think throughout the pandemic, we hired uh, the tech 143 00:07:22,440 --> 00:07:25,320 Speaker 1: industry hired to aggressively. I think it was trying to 144 00:07:25,360 --> 00:07:28,080 Speaker 1: meet that rapid onset of demand and a lot of 145 00:07:28,120 --> 00:07:31,080 Speaker 1: the digital transformation projects that we heard companies were doing. 146 00:07:31,080 --> 00:07:34,920 Speaker 1: We're really more bodies being thrown at growth and revenue 147 00:07:34,920 --> 00:07:38,440 Speaker 1: and demand. The spiked UH during the pandemic. So now 148 00:07:38,480 --> 00:07:40,960 Speaker 1: companies are looking at some of those uh those hires 149 00:07:41,000 --> 00:07:43,360 Speaker 1: they had to make it way over market values. They're 150 00:07:43,360 --> 00:07:45,440 Speaker 1: trying to reset some of those and trying to get 151 00:07:45,480 --> 00:07:48,600 Speaker 1: back to a more favorable outfact situation, which as we've seen, 152 00:07:48,640 --> 00:07:50,840 Speaker 1: as companies have announced reduction in forces and laots, the 153 00:07:50,840 --> 00:07:54,480 Speaker 1: markets actually favoring these decisions because these are getting back 154 00:07:54,520 --> 00:07:57,920 Speaker 1: to the roots of running these businesses. And so I 155 00:07:57,960 --> 00:07:59,920 Speaker 1: see this as a moment. Is it enough? I mean, 156 00:08:00,240 --> 00:08:03,120 Speaker 1: the size of Google is still significantly larger than it 157 00:08:03,200 --> 00:08:05,720 Speaker 1: was a year ago, even after twelve and that's the 158 00:08:05,760 --> 00:08:07,320 Speaker 1: case of most of these tech comes. So they are 159 00:08:07,320 --> 00:08:09,800 Speaker 1: reducing enforced, but there's still larger than they were a 160 00:08:09,880 --> 00:08:11,920 Speaker 1: year ago, as many of them did a lot of hiring. 161 00:08:12,120 --> 00:08:14,760 Speaker 1: So it's a start. But if the next quarter doesn't 162 00:08:14,760 --> 00:08:17,440 Speaker 1: look good, I would expect to see more. All right, Yeah, 163 00:08:17,480 --> 00:08:19,800 Speaker 1: Alphabet confirming it will book a charge of one point 164 00:08:19,880 --> 00:08:22,440 Speaker 1: nine billions two point three billion dollars as a result 165 00:08:22,680 --> 00:08:25,280 Speaker 1: of those layoffs. I guess the fighting talk was about AI, 166 00:08:25,360 --> 00:08:27,480 Speaker 1: and I think we knew this was coming right Dan, 167 00:08:27,600 --> 00:08:31,000 Speaker 1: that executives would be quizzed on AI. What Roofport told 168 00:08:31,000 --> 00:08:34,400 Speaker 1: me was basically a flex. It was basically defense saying 169 00:08:34,440 --> 00:08:36,920 Speaker 1: we've been working on AI for a long time. We're 170 00:08:36,920 --> 00:08:41,559 Speaker 1: excited about momentum as, breakthroughs coming from their research team, 171 00:08:41,600 --> 00:08:44,560 Speaker 1: like in language models, generative AI. A big emphasis on 172 00:08:44,640 --> 00:08:47,680 Speaker 1: research because for Alphabet it's not yet out there in 173 00:08:47,720 --> 00:08:50,520 Speaker 1: the real world. Do you expect Alphabet to become a 174 00:08:50,600 --> 00:08:55,720 Speaker 1: real commercialized AI player this year? I think anything that 175 00:08:55,800 --> 00:08:57,440 Speaker 1: was behind the curtain is going to have to start 176 00:08:57,440 --> 00:09:00,800 Speaker 1: to become more exposed. I think the p A commitment, 177 00:09:00,800 --> 00:09:04,440 Speaker 1: I think chat, GPTs popularity and the general concerns to 178 00:09:04,520 --> 00:09:07,319 Speaker 1: what this can mean for search for instance, or workspaces 179 00:09:07,800 --> 00:09:10,120 Speaker 1: is going to force Google and Alphabet to start to 180 00:09:10,160 --> 00:09:12,920 Speaker 1: reveal all of the research it's done. Now. To be clear, 181 00:09:13,080 --> 00:09:17,479 Speaker 1: as you know, technology industry analysts, we are continuously impressed 182 00:09:17,520 --> 00:09:20,200 Speaker 1: by what Google is capable of in the AI space. 183 00:09:20,280 --> 00:09:23,600 Speaker 1: They've been inventive, they've been innovative, but they haven't necessarily 184 00:09:23,640 --> 00:09:26,320 Speaker 1: done a great job of coming out in front recently 185 00:09:26,360 --> 00:09:30,640 Speaker 1: and explaining how they plan to combat what others are doing, 186 00:09:30,760 --> 00:09:32,440 Speaker 1: and in the case of the open Ai came on 187 00:09:32,600 --> 00:09:36,439 Speaker 1: very quickly, Microsoft's large commitment and investment, and now Google 188 00:09:36,520 --> 00:09:38,439 Speaker 1: is in a situation where they have to be able 189 00:09:38,480 --> 00:09:40,560 Speaker 1: to show the market, yes, we have a plan, we 190 00:09:40,640 --> 00:09:43,560 Speaker 1: have technology. We are not going to let a chat 191 00:09:43,640 --> 00:09:46,840 Speaker 1: bot or what open eye is doing significantly disrupt our 192 00:09:46,880 --> 00:09:50,800 Speaker 1: advertising business. Uh. And that's that's what the market's gonna 193 00:09:50,800 --> 00:09:52,680 Speaker 1: want to hear, is that there isn't a big risk 194 00:09:52,800 --> 00:09:55,400 Speaker 1: to that part of the business that's so critical to 195 00:09:55,480 --> 00:09:57,600 Speaker 1: its long term success. But down what is the risk 196 00:09:57,640 --> 00:10:00,520 Speaker 1: to that part of the business from regulation rather than 197 00:10:00,559 --> 00:10:04,480 Speaker 1: perhaps competition. Yeah, I'm really glad you asked that question. 198 00:10:04,559 --> 00:10:08,439 Speaker 1: I think the regulators across the board continue to look 199 00:10:08,480 --> 00:10:12,240 Speaker 1: at Google and of course the disproportionate amount of ads spending. 200 00:10:12,280 --> 00:10:15,079 Speaker 1: I still don't think it's the biggest challenge that regulators 201 00:10:15,120 --> 00:10:18,320 Speaker 1: actually have. I still find a lot of of what 202 00:10:18,360 --> 00:10:21,839 Speaker 1: Apple does with its uh you know, it's captive app ecosystem, 203 00:10:22,040 --> 00:10:24,679 Speaker 1: for instance, is a bigger issue. I mean, you see 204 00:10:24,720 --> 00:10:29,000 Speaker 1: Amazon coming out with growth and its advertising business right now. 205 00:10:29,520 --> 00:10:32,199 Speaker 1: Like I said, you see what chat GPT could potentially 206 00:10:32,280 --> 00:10:34,800 Speaker 1: due to the everyday search that feeds so much of 207 00:10:34,800 --> 00:10:38,360 Speaker 1: our ads that isn't really commerce demanded search, and you 208 00:10:38,400 --> 00:10:42,040 Speaker 1: suddenly say, you know, does Google's long term um, you know, 209 00:10:42,240 --> 00:10:45,800 Speaker 1: market strength? I don't dominance is the right word prevail 210 00:10:46,280 --> 00:10:48,760 Speaker 1: with all this new AI and technology that's coming into 211 00:10:48,760 --> 00:10:51,720 Speaker 1: the marketplace. Look, regulators are going to continue to regulate. 212 00:10:51,760 --> 00:10:54,800 Speaker 1: Europe will always, for instance, continue to be very tough 213 00:10:54,840 --> 00:10:57,040 Speaker 1: on big technology, and of course in the US we've 214 00:10:57,080 --> 00:11:00,360 Speaker 1: got leadership in the FTC that's constantly looking to regulate. 215 00:11:00,520 --> 00:11:03,040 Speaker 1: Having said that, I don't think Google is its biggest focus, 216 00:11:03,080 --> 00:11:05,959 Speaker 1: nor should it be, and I don't think regulators will 217 00:11:05,960 --> 00:11:08,680 Speaker 1: be doing any favors to the market by harming Google 218 00:11:08,800 --> 00:11:11,160 Speaker 1: because I also think with all the Apple I D 219 00:11:11,320 --> 00:11:13,800 Speaker 1: you know, the I D f A Apples and other 220 00:11:13,920 --> 00:11:17,200 Speaker 1: scary you know, entrent to have a really dominant opportunity 221 00:11:17,280 --> 00:11:19,960 Speaker 1: in advertising as it controls so much of the flow. 222 00:11:20,000 --> 00:11:22,280 Speaker 1: Is what we saw with Meta. Well, many say Amazon 223 00:11:22,360 --> 00:11:26,599 Speaker 1: is also competitive in advertising, and Amazon of course the 224 00:11:26,640 --> 00:11:30,439 Speaker 1: juggnal when it comes to cloud services AWS, so some slowdown. 225 00:11:30,440 --> 00:11:32,560 Speaker 1: We'll talk about that in a minute with our next guest, 226 00:11:32,600 --> 00:11:34,880 Speaker 1: But talk to us about Alphabet and it's cloud offering. 227 00:11:34,920 --> 00:11:38,720 Speaker 1: I mean, should it be committing this much, there's another loss. Yeah, 228 00:11:38,760 --> 00:11:41,360 Speaker 1: well the losses are narrowed. And I do believe that 229 00:11:41,520 --> 00:11:44,559 Speaker 1: Google has the opportunity with its customer base. It's uh, 230 00:11:44,600 --> 00:11:47,199 Speaker 1: you know, it's BROADUS user base, and it's a lot 231 00:11:47,200 --> 00:11:51,040 Speaker 1: of its technologies around data that it's become part of 232 00:11:51,080 --> 00:11:54,160 Speaker 1: the enterprise's larger cloud ecosystem. So in what we talk 233 00:11:54,200 --> 00:11:58,480 Speaker 1: called the multi cloud ecosystem. Google has been a consistent 234 00:11:58,640 --> 00:12:01,520 Speaker 1: growth engine. You saw they grew up this quarter, which 235 00:12:02,000 --> 00:12:04,320 Speaker 1: was right in part with with Azure and you know, 236 00:12:04,360 --> 00:12:06,400 Speaker 1: faster than AWS. And I know you're gonna kick over 237 00:12:06,400 --> 00:12:08,280 Speaker 1: to a w S, but you gotta look at a 238 00:12:08,440 --> 00:12:11,880 Speaker 1: w S as an over eighty billion dollar business, and yes, 239 00:12:12,160 --> 00:12:16,280 Speaker 1: slowing to is significant, but the business is so much 240 00:12:16,440 --> 00:12:19,680 Speaker 1: larger than you know, some of the other cloud providers 241 00:12:19,720 --> 00:12:21,800 Speaker 1: that I still think it WUS is in a really 242 00:12:21,800 --> 00:12:25,319 Speaker 1: good position. Going back to Google, Google needs to continue 243 00:12:25,360 --> 00:12:27,840 Speaker 1: to grow. It's going to have to hit an economy 244 00:12:27,840 --> 00:12:30,720 Speaker 1: of scale right get profitable. I don't sense that making 245 00:12:30,760 --> 00:12:33,000 Speaker 1: money is its biggest focus, but I think in this 246 00:12:33,040 --> 00:12:35,600 Speaker 1: time of austerity, they're gonna have to get there quicker 247 00:12:35,640 --> 00:12:39,719 Speaker 1: than they maybe wanted to. Future and research analyst d 248 00:12:39,720 --> 00:12:43,400 Speaker 1: and human digesting breaking down a big nings report from 249 00:12:43,400 --> 00:12:45,040 Speaker 1: out Bed, Thank you very much. Now coming out, we've 250 00:12:45,040 --> 00:12:46,600 Speaker 1: got to state with earnings, and we're going to dive 251 00:12:46,840 --> 00:12:49,719 Speaker 1: into Amazon's lackluster results. I just want to get a 252 00:12:49,800 --> 00:12:52,520 Speaker 1: quick check on Qualcom ches and how they're looking in 253 00:12:52,600 --> 00:12:54,439 Speaker 1: after hours training. We're actually down to and a half 254 00:12:54,520 --> 00:12:58,000 Speaker 1: well four percent. Now that's Amazon, but I'm talking about 255 00:12:58,120 --> 00:13:01,240 Speaker 1: Qualcolm the largest theory two and a half percent lower, 256 00:13:01,559 --> 00:13:04,240 Speaker 1: a pretty weak forecast. At first, it was not that 257 00:13:04,360 --> 00:13:06,880 Speaker 1: much of a decline because we saw this coming a 258 00:13:06,960 --> 00:13:10,400 Speaker 1: slowdown in the smartphone market. But again the market listening 259 00:13:10,440 --> 00:13:12,320 Speaker 1: to what executives are having to say on the call, 260 00:13:12,600 --> 00:13:16,479 Speaker 1: and those losses accelerating in post market. This is Bloomberg. 261 00:13:25,679 --> 00:13:28,720 Speaker 1: All the earnings come thick and fast on Thursday, and 262 00:13:28,760 --> 00:13:32,200 Speaker 1: Amazon was among them of course as well. Earnings well 263 00:13:32,200 --> 00:13:35,920 Speaker 1: showing some lack luster forecasts coming through. We're down three 264 00:13:35,600 --> 00:13:39,319 Speaker 1: point immediately after hours, Slower cloud unit growth as well 265 00:13:39,360 --> 00:13:41,600 Speaker 1: a w S, which is the profit center in many ways. 266 00:13:42,120 --> 00:13:44,640 Speaker 1: Let's talk to Minissa Verdict, because she's not only co 267 00:13:44,679 --> 00:13:46,440 Speaker 1: found in president of pack for You, which of course 268 00:13:46,480 --> 00:13:49,000 Speaker 1: all about making the best of your e commerce provisions 269 00:13:49,000 --> 00:13:52,280 Speaker 1: and marketing but also a tenure Amazon veteran. You know 270 00:13:52,400 --> 00:13:54,920 Speaker 1: this business, particularly on the e commerce side. So let's 271 00:13:54,960 --> 00:13:58,280 Speaker 1: start their overall, Melissa. When you're looking at what they're offering, 272 00:13:58,320 --> 00:14:02,360 Speaker 1: the macroeconomic headwind all, they navigating it. All. They focusing 273 00:14:02,360 --> 00:14:05,160 Speaker 1: and AFL and trimming costs, sudden growing growth and the 274 00:14:05,160 --> 00:14:08,800 Speaker 1: way you'd like to see them. Uh, they're definitely focusing 275 00:14:08,800 --> 00:14:11,760 Speaker 1: on that. I would say that they're focusing on profit 276 00:14:12,120 --> 00:14:15,520 Speaker 1: at this point. Um. Amazon is famous for, you know, 277 00:14:15,720 --> 00:14:18,480 Speaker 1: changing their knobs pretty quickly and they can go from 278 00:14:19,000 --> 00:14:22,920 Speaker 1: driving brow to driving profit and that's what they're doing now. UM. 279 00:14:23,080 --> 00:14:26,360 Speaker 1: Q four was a really interesting kind of quarter. There 280 00:14:26,480 --> 00:14:29,760 Speaker 1: was definitely a slowdown in demand. UM consumers that were 281 00:14:29,760 --> 00:14:33,560 Speaker 1: coming in, they're actually coming in to buy deals and discounts. Uh. 282 00:14:33,560 --> 00:14:36,200 Speaker 1: And the good news is that Amazon is always known 283 00:14:36,240 --> 00:14:38,960 Speaker 1: for having the greatest prices and so that that's something 284 00:14:39,000 --> 00:14:42,000 Speaker 1: that was definitely going for them. But um, you know, 285 00:14:42,120 --> 00:14:45,280 Speaker 1: unlike in years past, Amazon and Q four actually had 286 00:14:45,520 --> 00:14:49,640 Speaker 1: more inventory. UM consumers wanted to buy on deals, so 287 00:14:49,680 --> 00:14:52,960 Speaker 1: they came in, they bought during Black Friday's every Monday. UM. 288 00:14:53,000 --> 00:14:57,000 Speaker 1: But you know, Amazon is really focused on cost cutting 289 00:14:57,040 --> 00:15:01,160 Speaker 1: at this point, being efficient profit margin um in the 290 00:15:01,240 --> 00:15:04,760 Speaker 1: face of having a lot of slower demand consumer demand. 291 00:15:06,200 --> 00:15:09,280 Speaker 1: It's interesting on the cool Brander's abscie the CFOs talking 292 00:15:09,320 --> 00:15:13,080 Speaker 1: about the layoffs and saying this round of layoffs is 293 00:15:13,200 --> 00:15:16,440 Speaker 1: over and talking about the charges and impairments which they took. 294 00:15:16,800 --> 00:15:19,400 Speaker 1: But Amazon is still kind of bloated. It seems still 295 00:15:19,440 --> 00:15:21,960 Speaker 1: a big beast. Do you expect the company to be 296 00:15:22,000 --> 00:15:24,560 Speaker 1: more nimble in terms of how it kind of adds 297 00:15:24,560 --> 00:15:29,280 Speaker 1: and flows in hiring and reduction going forward. Absolutely, they 298 00:15:29,360 --> 00:15:33,200 Speaker 1: hired half a million people and they have over one 299 00:15:33,480 --> 00:15:38,480 Speaker 1: five million employees, so eighteen thou employees is not a 300 00:15:38,600 --> 00:15:41,840 Speaker 1: huge amount. And in the face of slowing growths and 301 00:15:41,920 --> 00:15:45,200 Speaker 1: slowing demand, you know, it's it's something to think about, 302 00:15:45,280 --> 00:15:47,840 Speaker 1: which is they will have to look at their bottom line. 303 00:15:48,440 --> 00:15:50,800 Speaker 1: Where do they lean into at the moment? When so, 304 00:15:50,960 --> 00:15:54,080 Speaker 1: where are they able within the focus on profit to 305 00:15:54,160 --> 00:15:58,160 Speaker 1: decide to allocate cash for growth? Well, the through the 306 00:15:58,280 --> 00:16:01,800 Speaker 1: two businesses at Amazon that are very profitable are advertising 307 00:16:01,920 --> 00:16:06,040 Speaker 1: and AWS. Uh So those are definitely areas that they 308 00:16:06,080 --> 00:16:09,040 Speaker 1: plan on continue to invest in. The AWS is slowing 309 00:16:09,040 --> 00:16:12,600 Speaker 1: what you worried by about. They're definitely both slowing um 310 00:16:12,600 --> 00:16:16,640 Speaker 1: and absolutely. Uh. You know, AWS market share has dropped 311 00:16:16,680 --> 00:16:19,280 Speaker 1: from forty three percent thirty four percent. They have a 312 00:16:19,320 --> 00:16:23,080 Speaker 1: lot of competition with Microsoft and Google, and right now 313 00:16:23,400 --> 00:16:27,480 Speaker 1: all companies unit hards are looking at cutting costs, and 314 00:16:27,640 --> 00:16:29,960 Speaker 1: one of the first places you go to is AWS. 315 00:16:30,360 --> 00:16:31,960 Speaker 1: So I think that is going to be a big 316 00:16:32,040 --> 00:16:35,320 Speaker 1: challenge this year because companies are looking to cut be 317 00:16:35,440 --> 00:16:41,120 Speaker 1: efficient themselves, and that will impact AWS. I guess my question, 318 00:16:41,200 --> 00:16:45,120 Speaker 1: Melissa is how long does AWS be the sort of 319 00:16:45,240 --> 00:16:49,560 Speaker 1: bankroller of the rest of the business, Because that's the 320 00:16:49,640 --> 00:16:53,320 Speaker 1: situation right where Amazon has this sort of ginormous commerce business. 321 00:16:53,760 --> 00:16:57,840 Speaker 1: There's the prime subscription element, the video and content element, 322 00:16:57,880 --> 00:16:59,920 Speaker 1: but it's all kind of dependent on this cash cat. 323 00:17:00,000 --> 00:17:03,160 Speaker 1: How you've been inside that that company, you know how 324 00:17:03,240 --> 00:17:05,960 Speaker 1: it operates. Do you think they'll have a change, They'll 325 00:17:06,000 --> 00:17:10,399 Speaker 1: have a snap snap free of that business model? Um, 326 00:17:10,560 --> 00:17:12,840 Speaker 1: I mean serve the services business. Amazon has become a 327 00:17:12,880 --> 00:17:18,560 Speaker 1: services business. It's over of their revenue across AWS, advertising 328 00:17:18,640 --> 00:17:22,280 Speaker 1: and subscriptions, and so that will continue. And I think 329 00:17:22,359 --> 00:17:24,560 Speaker 1: that you know, one thing that Amazon is well known 330 00:17:24,640 --> 00:17:27,600 Speaker 1: for is innovation. The thing that can't control is the 331 00:17:27,720 --> 00:17:30,080 Speaker 1: demand and the cost cutting part that other people are 332 00:17:30,119 --> 00:17:34,440 Speaker 1: doing and that impacts AWS. UM, I think advertising is 333 00:17:34,440 --> 00:17:37,400 Speaker 1: a bright star. They're doing so many things there. Crime 334 00:17:37,560 --> 00:17:40,600 Speaker 1: video for the first time surpassed as Netflix is the 335 00:17:40,680 --> 00:17:44,280 Speaker 1: top streaming service. Amazon talked about a hundred million viewers 336 00:17:44,520 --> 00:17:47,639 Speaker 1: watching a Lord of the Rings. Um, more people watching 337 00:17:47,720 --> 00:17:51,720 Speaker 1: streaming means more advertising revenue to Amazon, and so that 338 00:17:52,000 --> 00:17:55,080 Speaker 1: is a big star for them. Very briefly. We've touched 339 00:17:55,119 --> 00:17:58,000 Speaker 1: on it with Alphabet, but the regular story overhang anything 340 00:17:58,080 --> 00:18:02,919 Speaker 1: that worries you with Amazon. Uh, the DJ definitely has 341 00:18:03,000 --> 00:18:06,160 Speaker 1: Amazon as a target. It's really hard to call them 342 00:18:06,200 --> 00:18:09,479 Speaker 1: and monopoly with so much competition. They actually have slipping 343 00:18:09,560 --> 00:18:12,760 Speaker 1: market share in AWS. But that's not to say that 344 00:18:12,840 --> 00:18:14,800 Speaker 1: it's not going to be a distraction and something that 345 00:18:14,880 --> 00:18:16,960 Speaker 1: they're going to have to answer. So you know, this 346 00:18:17,080 --> 00:18:19,879 Speaker 1: happened before with private label UM and they had to 347 00:18:20,119 --> 00:18:23,119 Speaker 1: answer to that. So it'll continue to be something that 348 00:18:23,680 --> 00:18:27,200 Speaker 1: all these tech companies are dealing with. But I see 349 00:18:27,280 --> 00:18:30,840 Speaker 1: less of kind of a like to stand on pact 350 00:18:30,880 --> 00:18:33,280 Speaker 1: for your co founder and president, Melissa birt It, thank 351 00:18:33,320 --> 00:18:36,360 Speaker 1: you so much for breaking down again and now they're challenging. 352 00:18:36,400 --> 00:18:47,760 Speaker 1: Earnings report from Amazon now is one of the most 353 00:18:47,840 --> 00:18:50,560 Speaker 1: read stories on the terminal amongst our clients, at least today, 354 00:18:50,800 --> 00:18:53,520 Speaker 1: because some major hedge funds they've been asked by US 355 00:18:53,560 --> 00:18:57,600 Speaker 1: regulators to review certain employees personal mobile phones. Why because 356 00:18:57,600 --> 00:18:59,920 Speaker 1: it's all part of this big probe that continues to 357 00:19:00,080 --> 00:19:03,959 Speaker 1: mushroom of Wall Street's use of unofficial messasaging platforms, basically 358 00:19:04,280 --> 00:19:06,760 Speaker 1: the use of WhatsApp to be able to do deals, 359 00:19:06,880 --> 00:19:09,439 Speaker 1: broker potentially M and A and that sort of thing. 360 00:19:09,520 --> 00:19:12,520 Speaker 1: And ultimately we're hearing that the SEC has our Steve 361 00:19:12,640 --> 00:19:16,919 Speaker 1: Cohen's points on only two Ken Griffin's Citadel other firms 362 00:19:17,000 --> 00:19:19,960 Speaker 1: as well. But what about the liability here? What about 363 00:19:20,040 --> 00:19:22,399 Speaker 1: people's phones? What sort of data might we end up 364 00:19:22,560 --> 00:19:25,000 Speaker 1: sort of unfolding here in terms of health, in terms 365 00:19:25,040 --> 00:19:27,560 Speaker 1: of finance, Well, we should say those hedge funds you name, 366 00:19:27,680 --> 00:19:30,040 Speaker 1: no one's been accused of any wrongdoing, but they are 367 00:19:30,160 --> 00:19:35,879 Speaker 1: literally asking them to review the devices for any transactional stuff, 368 00:19:35,920 --> 00:19:38,960 Speaker 1: that business stuff that's being done on them inappropriately. That's 369 00:19:39,000 --> 00:19:41,000 Speaker 1: the reality of what's playing out on Wall Street. We've 370 00:19:41,000 --> 00:19:44,720 Speaker 1: already seen the fines being exerted upon the brokerages and 371 00:19:44,840 --> 00:19:48,080 Speaker 1: the actual banks. We see asset managers kind of pushed 372 00:19:48,119 --> 00:19:57,720 Speaker 1: back at the moment, I'll come back to Bluemo technology. 373 00:19:57,720 --> 00:19:59,159 Speaker 1: I'm Caroline had in New York, and let's get you 374 00:19:59,240 --> 00:20:00,760 Speaker 1: up to speed with some of cost cuts, some of 375 00:20:00,800 --> 00:20:03,439 Speaker 1: the layoffs, whether they're done or not. Lumbag intelligence put 376 00:20:03,480 --> 00:20:05,960 Speaker 1: on oil and pieces says with us Rumas Tech Executive 377 00:20:06,080 --> 00:20:08,639 Speaker 1: editor Tom Jailes as well, start with you and on 378 00:20:08,800 --> 00:20:12,119 Speaker 1: Amazon because ed talking about this reset and alphabet, this 379 00:20:12,240 --> 00:20:14,680 Speaker 1: focus on being more disciplined and on cost cuts, the 380 00:20:14,720 --> 00:20:17,480 Speaker 1: layoffs Amazon's used to be saying, look the cost cuts, Well, 381 00:20:17,640 --> 00:20:20,800 Speaker 1: certainly the layoffs are done. Are they right sizing in 382 00:20:20,840 --> 00:20:23,280 Speaker 1: the way that the market wants to see? Well, they're 383 00:20:23,400 --> 00:20:25,320 Speaker 1: there are laborers down for a percent and a year 384 00:20:25,400 --> 00:20:28,280 Speaker 1: or a year basis, So they did right size a little. 385 00:20:28,400 --> 00:20:31,640 Speaker 1: Now you can argue that could they do more? Sure, 386 00:20:31,840 --> 00:20:34,880 Speaker 1: but maybe they're just waiting to see how things unfold. 387 00:20:35,080 --> 00:20:38,800 Speaker 1: And remember Amazon's a business where many parts of it 388 00:20:38,880 --> 00:20:42,399 Speaker 1: are still in rapid growth mode, whether that's advertising a 389 00:20:42,720 --> 00:20:46,280 Speaker 1: WS or um even on the three P side where 390 00:20:46,400 --> 00:20:49,440 Speaker 1: they really are growing much faster than expected, or the 391 00:20:49,560 --> 00:20:53,879 Speaker 1: overall retail business despite resolve all down. Sorry it interrupts 392 00:20:53,880 --> 00:20:55,520 Speaker 1: you out, Tom, I actually want to pivot to Apple 393 00:20:55,640 --> 00:20:58,119 Speaker 1: because we kind of saw this coming, you know, we 394 00:20:58,200 --> 00:21:01,320 Speaker 1: knew that December would be really tasked. They missed estimates 395 00:21:01,359 --> 00:21:04,560 Speaker 1: basically across all the products, and the markets reacting as 396 00:21:04,600 --> 00:21:07,800 Speaker 1: you'd expect, pretty negatively. But is that a surprise. I mean, 397 00:21:07,880 --> 00:21:10,600 Speaker 1: we thought they'd be weak. We saw the headlines out 398 00:21:10,640 --> 00:21:12,560 Speaker 1: of China. We knew that there were going to be 399 00:21:12,680 --> 00:21:16,080 Speaker 1: supply chain constraints, We saw the lockdowns, and we saw 400 00:21:16,160 --> 00:21:20,080 Speaker 1: the impact, and and Apple is absolutely feeling it. In 401 00:21:20,160 --> 00:21:23,719 Speaker 1: addition to supply chain concerns, Tim Cook talked about currency 402 00:21:23,800 --> 00:21:27,240 Speaker 1: headwinds that has to be taken into consideration. But also 403 00:21:28,760 --> 00:21:31,280 Speaker 1: remember back the saying when Clinton was running for pred 404 00:21:31,720 --> 00:21:35,359 Speaker 1: it's the economy, stupid, it's the economy. The economy is 405 00:21:35,480 --> 00:21:40,680 Speaker 1: hurting Apple. It's hurting demand for iPhones. The economy is 406 00:21:40,720 --> 00:21:44,399 Speaker 1: affecting demand for ads on Alphabet, and the economy is 407 00:21:44,440 --> 00:21:49,280 Speaker 1: affecting demand for a WS, the cloud services at Amazon, 408 00:21:49,920 --> 00:21:53,080 Speaker 1: all of those things. That's the theme running between all 409 00:21:53,119 --> 00:21:55,720 Speaker 1: of these three companies today. I love how you bring 410 00:21:55,800 --> 00:21:59,120 Speaker 1: them all together and this discipline, this focus. What's interesting 411 00:21:59,480 --> 00:22:03,080 Speaker 1: is rule for Apple, in particular, their supply chain headaches. 412 00:22:03,520 --> 00:22:05,159 Speaker 1: Did they speak to that in any way? Have we 413 00:22:05,240 --> 00:22:07,800 Speaker 1: got an idea as to whether the China issues, whether 414 00:22:07,880 --> 00:22:10,160 Speaker 1: they're now trying to broaden out of just Fox Con, 415 00:22:10,200 --> 00:22:12,399 Speaker 1: whether that was what was hindering some of the sales, 416 00:22:12,400 --> 00:22:16,600 Speaker 1: particularly on iPhone sales. Well, a couple of things, Caroline, 417 00:22:16,680 --> 00:22:21,720 Speaker 1: great questions. First and foremost, Obviously, things have changed dramatically 418 00:22:22,000 --> 00:22:25,760 Speaker 1: in China since we had the lockdowns late last year. 419 00:22:26,119 --> 00:22:29,600 Speaker 1: You've seen this opening up. Uh, So you're not seeing 420 00:22:29,640 --> 00:22:32,680 Speaker 1: the headlines of like of of people just locked in 421 00:22:32,720 --> 00:22:36,720 Speaker 1: their homes literally not going out, not buying um, and 422 00:22:36,840 --> 00:22:38,880 Speaker 1: people not even being being able to get to work 423 00:22:38,920 --> 00:22:44,679 Speaker 1: to actually manufacture the phones. So that's changing. What isn't changing, however, 424 00:22:45,119 --> 00:22:48,399 Speaker 1: is these questions about, you know, just how quickly is 425 00:22:48,520 --> 00:22:53,760 Speaker 1: demand overall globally going to come back. It's not roaring back. Um. 426 00:22:54,200 --> 00:22:56,320 Speaker 1: You know they've had to take they've had to slow 427 00:22:56,400 --> 00:22:59,879 Speaker 1: down their hiring. Um. Everybody's taking different kinds of us 428 00:23:00,000 --> 00:23:03,359 Speaker 1: theority measures. Um. You know, I sort of put out 429 00:23:03,400 --> 00:23:06,080 Speaker 1: a tweet about how all these companies maybe they should 430 00:23:06,080 --> 00:23:09,600 Speaker 1: be talking about, just like Zuckerberg did, is going to 431 00:23:09,680 --> 00:23:12,800 Speaker 1: be the year of austerity. You're not quite hearing it 432 00:23:13,119 --> 00:23:16,440 Speaker 1: as aggressively as you heard with with Meta, and remember 433 00:23:16,880 --> 00:23:19,760 Speaker 1: Meta also talked about authorizing a buyback of as much 434 00:23:19,800 --> 00:23:22,040 Speaker 1: as forty billion dollars. Another reason why you may not 435 00:23:22,200 --> 00:23:25,720 Speaker 1: be seeing quite the rally in the stocks that you 436 00:23:25,840 --> 00:23:29,200 Speaker 1: saw with Meta earlier today. Okay, let's go back to Amazon, 437 00:23:29,240 --> 00:23:31,120 Speaker 1: but also kind of links what Tom was talking about 438 00:23:31,119 --> 00:23:34,879 Speaker 1: about the broader economy. You're you've written about a bifurcation 439 00:23:35,400 --> 00:23:38,919 Speaker 1: in trends and particularly focus on that AWS drag. Right, 440 00:23:38,960 --> 00:23:42,439 Speaker 1: You wanted to know about the macroeconomic environment. You wanted 441 00:23:42,800 --> 00:23:45,879 Speaker 1: to know about cost saving progressions. Well, what did you 442 00:23:46,000 --> 00:23:49,560 Speaker 1: learn so far from Amazon's commentary? Sure, I mean the 443 00:23:49,640 --> 00:23:52,359 Speaker 1: call starting as we speak, but what I've seen them 444 00:23:52,440 --> 00:23:55,879 Speaker 1: say just recently on the call is that consumers are 445 00:23:55,920 --> 00:23:59,240 Speaker 1: trading down. And that's obviously a concern because when you 446 00:23:59,320 --> 00:24:02,080 Speaker 1: start to see a trade down, you kind of get 447 00:24:02,160 --> 00:24:05,200 Speaker 1: the first signal that the economy is softening. So there 448 00:24:05,280 --> 00:24:07,760 Speaker 1: are pockets of weakness that we do need to look 449 00:24:07,800 --> 00:24:11,600 Speaker 1: out for as we move forward into three But overall, 450 00:24:11,680 --> 00:24:14,119 Speaker 1: when I think about Amazon, Amazon is just not a 451 00:24:14,200 --> 00:24:16,800 Speaker 1: one P business. It's also a three P business, and 452 00:24:16,920 --> 00:24:20,440 Speaker 1: their third party business is very very strong. It remains 453 00:24:20,480 --> 00:24:25,280 Speaker 1: an attractive platform for new businesses. And existing businesses to 454 00:24:25,359 --> 00:24:28,440 Speaker 1: really get the eyeballs that they want. So it's it's 455 00:24:28,480 --> 00:24:30,400 Speaker 1: it's kind of a mixed story when you think about 456 00:24:30,440 --> 00:24:33,120 Speaker 1: Amazon's total g m B, where one P may struggle 457 00:24:33,160 --> 00:24:36,560 Speaker 1: a little, but three P is still very much on fire. 458 00:24:37,400 --> 00:24:39,840 Speaker 1: Three P third party. We love the lingo. We love 459 00:24:39,920 --> 00:24:42,040 Speaker 1: the fact that both of you could draw all of 460 00:24:42,080 --> 00:24:44,760 Speaker 1: these juggernauts together and sort of tell us the thread 461 00:24:44,760 --> 00:24:48,160 Speaker 1: across it all, which is, of course, efficiency, efficiency, efficiency, 462 00:24:48,200 --> 00:24:52,240 Speaker 1: stupid Bloomberg intelligence pot and goil. Bloomg Executive editor Tom Giles, 463 00:24:52,400 --> 00:24:55,000 Speaker 1: We thank you both so much, great expertise. Meanwhile, coming up, 464 00:24:55,119 --> 00:24:56,840 Speaker 1: I'm gonna pivot a little bit. Let's get out of 465 00:24:56,880 --> 00:24:59,280 Speaker 1: the world of earnings. Let's go back to the world 466 00:24:59,320 --> 00:25:01,800 Speaker 1: of fts. Because we had an exclusive interview with the 467 00:25:01,840 --> 00:25:04,680 Speaker 1: former f t x U S president Brett Harrison. When 468 00:25:04,760 --> 00:25:07,720 Speaker 1: wrong from an inside of you, that's next and this 469 00:25:07,800 --> 00:25:20,440 Speaker 1: is Greenback. It's been less than three months since f 470 00:25:20,600 --> 00:25:23,879 Speaker 1: t x collapsed and a former top executive is eager 471 00:25:24,200 --> 00:25:26,600 Speaker 1: to get it all behind him. Former f t x 472 00:25:26,720 --> 00:25:29,840 Speaker 1: U S President Brett Harrison insists he didn't have a 473 00:25:30,000 --> 00:25:33,359 Speaker 1: clue what Sam Bankman Freed was up to. He sat 474 00:25:33,400 --> 00:25:38,680 Speaker 1: down with Bloomberg Sinali Bassik in an exclusive interview. M H. 475 00:25:39,480 --> 00:25:42,879 Speaker 1: There were primarily disputes that I would attribute to the 476 00:25:42,960 --> 00:25:46,520 Speaker 1: growing pains of any high growth company, you know, problems 477 00:25:46,560 --> 00:25:52,520 Speaker 1: around internal communication, around structuring the company, for providing better governance, 478 00:25:52,680 --> 00:25:55,960 Speaker 1: especially as we as we were growing larger, around hiring 479 00:25:56,080 --> 00:25:58,440 Speaker 1: enough you know, developers and other senior staff that we 480 00:25:58,520 --> 00:26:00,400 Speaker 1: needed to be able to accomplish many of the goals 481 00:26:00,440 --> 00:26:03,680 Speaker 1: that we were seeking to accomplish. And when I would 482 00:26:03,680 --> 00:26:06,159 Speaker 1: try to bring up these kinds of criticisms internally at 483 00:26:06,200 --> 00:26:09,520 Speaker 1: the company, UM, they were never met well. And at 484 00:26:09,600 --> 00:26:11,959 Speaker 1: some point, you know, we truly weren't really speaking much 485 00:26:12,000 --> 00:26:13,760 Speaker 1: to each other over the course of the last queen 486 00:26:13,800 --> 00:26:15,600 Speaker 1: a part of the time that I was there. Now, 487 00:26:15,720 --> 00:26:17,840 Speaker 1: you had mentioned these disputes were not just with Sam 488 00:26:17,920 --> 00:26:19,920 Speaker 1: Big but Free you had mentioned these disputes were with 489 00:26:20,040 --> 00:26:23,800 Speaker 1: other members of his staff, his deputies. Who else did 490 00:26:23,840 --> 00:26:26,359 Speaker 1: you find those disputes with? Yeah, you know, they were 491 00:26:26,400 --> 00:26:29,159 Speaker 1: primarily with Sam, but you know, I think many of 492 00:26:29,200 --> 00:26:31,440 Speaker 1: the people around Sam really agree with him on most 493 00:26:31,480 --> 00:26:33,879 Speaker 1: of the internal decisions, especially around trying to kind of 494 00:26:33,920 --> 00:26:37,760 Speaker 1: grow and separate the staff. Um, there was very much 495 00:26:37,760 --> 00:26:40,360 Speaker 1: sort of a separation between the group of people who 496 00:26:40,400 --> 00:26:43,080 Speaker 1: were the executives in the Bahamas, sort of around them, 497 00:26:43,200 --> 00:26:45,960 Speaker 1: living together, who were making those kinds of decisions, versus 498 00:26:46,040 --> 00:26:47,800 Speaker 1: the people on the U S side, who are you know, 499 00:26:47,840 --> 00:26:49,760 Speaker 1: I guess I said, we're systematically left out of many 500 00:26:49,800 --> 00:26:52,879 Speaker 1: of those decisions. Um to the extent that you believe. 501 00:26:53,080 --> 00:26:54,959 Speaker 1: You know, the number of his deputies have already come 502 00:26:55,040 --> 00:26:57,359 Speaker 1: up and pled guilty to some of the charges that 503 00:26:57,480 --> 00:27:01,440 Speaker 1: we're seeing against f t X. What do you think 504 00:27:01,640 --> 00:27:04,360 Speaker 1: about those charges and do you think that there's anybody 505 00:27:04,400 --> 00:27:07,520 Speaker 1: else that will be brought into them. I'm not sure 506 00:27:07,560 --> 00:27:09,680 Speaker 1: if there's going to be anybody else at this point. UM. 507 00:27:10,280 --> 00:27:14,040 Speaker 1: I do think that the charges are they're damning, and 508 00:27:14,560 --> 00:27:18,359 Speaker 1: they're truly shocking to see sort of the depths that 509 00:27:19,160 --> 00:27:22,520 Speaker 1: um Sam and his close associates went to to try 510 00:27:22,560 --> 00:27:26,359 Speaker 1: to conceal this fraud from the public and the private 511 00:27:26,880 --> 00:27:31,000 Speaker 1: UM and you know, as as a customer of the exchange, myself, 512 00:27:31,040 --> 00:27:33,440 Speaker 1: as someone who had worked extremely hard to try to 513 00:27:33,520 --> 00:27:35,560 Speaker 1: build out this great business on the U S side, 514 00:27:35,560 --> 00:27:38,920 Speaker 1: who had hired extremely talented individuals into the U S 515 00:27:38,960 --> 00:27:41,320 Speaker 1: Company to be able to accomplish those goals. It was 516 00:27:41,440 --> 00:27:43,280 Speaker 1: really really sad to see all this come to light. 517 00:27:43,520 --> 00:27:45,520 Speaker 1: Now you had said fraud, but this is still an 518 00:27:45,600 --> 00:27:49,160 Speaker 1: alleged fraud. He has not been convicted yet, although others 519 00:27:49,200 --> 00:27:52,440 Speaker 1: have played guilty. I'm wondering what you think about the 520 00:27:52,520 --> 00:27:55,679 Speaker 1: go forward path here? I mean, do you have any evidence? 521 00:27:55,720 --> 00:28:00,320 Speaker 1: Are you cooperating with authorities at this time? You know, 522 00:28:00,320 --> 00:28:01,840 Speaker 1: I can't speak to whether I am or I'm not, 523 00:28:01,960 --> 00:28:04,120 Speaker 1: you know, involved in the investigation. I am very happy 524 00:28:04,240 --> 00:28:06,439 Speaker 1: to cooperate in any way that I can, But at 525 00:28:06,480 --> 00:28:08,359 Speaker 1: this point it's really just sort of a wait and see. 526 00:28:08,720 --> 00:28:10,119 Speaker 1: You know, We're going to see if there are more 527 00:28:10,200 --> 00:28:12,200 Speaker 1: details that come to light, if there are anyone else 528 00:28:12,240 --> 00:28:14,800 Speaker 1: that's sort of brought in, who ends up leading guilty 529 00:28:14,880 --> 00:28:17,159 Speaker 1: or not, you know, whether this case actually ends up 530 00:28:17,200 --> 00:28:18,920 Speaker 1: making it to trial. It's something that I'm kind of 531 00:28:19,000 --> 00:28:21,560 Speaker 1: watching and waiting and interested in the way that kind 532 00:28:21,560 --> 00:28:23,320 Speaker 1: of everyone else is in the public. Have you been 533 00:28:23,359 --> 00:28:26,320 Speaker 1: in touch with Sam since you've left? No, In fact, 534 00:28:26,440 --> 00:28:28,359 Speaker 1: you know, I think we were last in touch several 535 00:28:28,400 --> 00:28:31,239 Speaker 1: months before I left the company. Even have you been 536 00:28:31,280 --> 00:28:33,520 Speaker 1: in touch with any of his other deputies that you 537 00:28:33,560 --> 00:28:36,280 Speaker 1: had said you had disputed with and if you had 538 00:28:36,359 --> 00:28:38,200 Speaker 1: the opportunity to talk to Sam, would you want to 539 00:28:38,280 --> 00:28:42,120 Speaker 1: and what would you say? Um? No to the first question, 540 00:28:42,240 --> 00:28:44,600 Speaker 1: and then the second one. I think nothing. You know, 541 00:28:44,680 --> 00:28:47,600 Speaker 1: I think at this point it's best for me and 542 00:28:47,840 --> 00:28:50,680 Speaker 1: for everyone, the media, the public, investors, everyone to sort 543 00:28:50,720 --> 00:28:53,760 Speaker 1: of to move on from from Sam and find a 544 00:28:53,800 --> 00:28:55,640 Speaker 1: way path forward, to be able to move forward with 545 00:28:55,800 --> 00:28:59,040 Speaker 1: with crypto in this industry. UM, I think you know 546 00:28:59,240 --> 00:29:02,920 Speaker 1: we're time to turn the page. M Brett Harrison, their 547 00:29:03,040 --> 00:29:06,080 Speaker 1: former f t X US president and ED is great 548 00:29:06,160 --> 00:29:08,360 Speaker 1: that Shannale is staying late to talk to us about 549 00:29:08,520 --> 00:29:12,760 Speaker 1: this extraordinary conversation. And I think ultimately Shannali just give 550 00:29:12,800 --> 00:29:15,640 Speaker 1: us your take on the fact that he is trying 551 00:29:15,680 --> 00:29:18,200 Speaker 1: to turn a page. People are handing him money, not 552 00:29:18,280 --> 00:29:20,560 Speaker 1: as much money as he hoped to raise, but five 553 00:29:20,600 --> 00:29:23,120 Speaker 1: millions a lot from some interesting players. Do you think 554 00:29:23,160 --> 00:29:25,880 Speaker 1: he can move on? You know, it's interesting, as you said, 555 00:29:25,920 --> 00:29:28,160 Speaker 1: it's not as much as he initially went out to raise. 556 00:29:28,280 --> 00:29:30,840 Speaker 1: He started that process after leaving f t X, before 557 00:29:31,120 --> 00:29:33,800 Speaker 1: it had imploded. And then you look at who he 558 00:29:33,920 --> 00:29:37,120 Speaker 1: raised money from, the likes of Anthony Scaramucci, who himself 559 00:29:37,200 --> 00:29:40,040 Speaker 1: felt wronged by f t X. Given that Anthony Scaramucci 560 00:29:40,360 --> 00:29:43,440 Speaker 1: had selt sold a part of his own firm to 561 00:29:43,680 --> 00:29:47,120 Speaker 1: f t X Ventures, can he move on? It's interesting 562 00:29:47,200 --> 00:29:50,200 Speaker 1: he's trying to hire former employees of f t X. 563 00:29:50,480 --> 00:29:54,000 Speaker 1: He's hired about five, he said, and the road. He 564 00:29:54,080 --> 00:29:55,600 Speaker 1: says he wants to move on, But how long does 565 00:29:55,640 --> 00:29:58,160 Speaker 1: that take? The questions that still remain are should he 566 00:29:58,320 --> 00:30:02,360 Speaker 1: have known? He says he was misled. He says he's 567 00:30:02,400 --> 00:30:05,560 Speaker 1: kept records of how he was misled. But at the 568 00:30:05,680 --> 00:30:08,320 Speaker 1: end of the day, this will take a long time. 569 00:30:08,480 --> 00:30:11,720 Speaker 1: Even just the responses on Twitter, people won't feel like 570 00:30:11,840 --> 00:30:13,880 Speaker 1: they can move on from f TX until they start 571 00:30:13,920 --> 00:30:16,280 Speaker 1: to get their money back and they get some resolution 572 00:30:16,360 --> 00:30:18,240 Speaker 1: to some of the answers that are so brewing about 573 00:30:18,280 --> 00:30:24,040 Speaker 1: the situation. Snali triffic interview, Just great timing around that conversation. 574 00:30:24,120 --> 00:30:26,680 Speaker 1: The other big headline of the day is, according to 575 00:30:26,760 --> 00:30:31,120 Speaker 1: Bloomberg sources, Silver Gates is facing d o J probes 576 00:30:31,600 --> 00:30:33,800 Speaker 1: over what happened with f t X and Alimta. What 577 00:30:33,880 --> 00:30:37,080 Speaker 1: do we know? A few things? This is US prosecutors 578 00:30:37,120 --> 00:30:40,360 Speaker 1: in the Justice departments fraud Unit. According to Bloomberg's Tom Schoenberg, 579 00:30:40,760 --> 00:30:44,080 Speaker 1: this is a criminal investigation according to his report, and 580 00:30:44,240 --> 00:30:47,239 Speaker 1: it is started fairly recently. Remember when you look at 581 00:30:47,240 --> 00:30:49,600 Speaker 1: silver Gate and its relationship with Alameda, it started in 582 00:30:49,720 --> 00:30:52,400 Speaker 1: two thousand and eighteen. Silvergate was really the bank of 583 00:30:52,520 --> 00:30:56,120 Speaker 1: choice for a lot of crypto large crypto companies. But 584 00:30:56,200 --> 00:30:59,520 Speaker 1: when you take a look here at this investigation itself, 585 00:30:59,600 --> 00:31:02,320 Speaker 1: it comes off the heels of criticism from lawmakers as well. 586 00:31:02,440 --> 00:31:05,880 Speaker 1: To describe more of the relationship between silver Gate, f 587 00:31:06,000 --> 00:31:09,080 Speaker 1: t X and Alometa and what silver Gate really knew 588 00:31:09,080 --> 00:31:12,840 Speaker 1: about what was going on and whether they had appropriate disclosures. Remember, 589 00:31:12,920 --> 00:31:15,920 Speaker 1: silver Gate is a bank here, California based bank that 590 00:31:16,080 --> 00:31:19,720 Speaker 1: is still using a depression era backstop for the way 591 00:31:19,800 --> 00:31:22,320 Speaker 1: that it operates. It has short term funding that really 592 00:31:22,360 --> 00:31:25,000 Speaker 1: allows it to operate in the way it does. So 593 00:31:25,200 --> 00:31:27,480 Speaker 1: it is one of the more clear links to the 594 00:31:27,560 --> 00:31:31,360 Speaker 1: traditional financial system when you're looking at how the crypto 595 00:31:31,440 --> 00:31:35,480 Speaker 1: industry is financed generalie. What's interesting whether or not people 596 00:31:35,560 --> 00:31:37,520 Speaker 1: can move on. Some people are trying to move on 597 00:31:37,600 --> 00:31:40,080 Speaker 1: by the fact that prices are rallying again. They're not 598 00:31:40,240 --> 00:31:43,800 Speaker 1: in anywhere near the heady heights six, but still Bitcoin 599 00:31:43,880 --> 00:31:46,080 Speaker 1: the o G is climbing higher. We've just had some 600 00:31:46,200 --> 00:31:48,600 Speaker 1: numbers out of micro Strategy, which was once upon a 601 00:31:48,640 --> 00:31:52,000 Speaker 1: time a software company and basically became a bitcoin vet. 602 00:31:52,560 --> 00:31:56,400 Speaker 1: How are we seeing these companies still suffering from last year? 603 00:31:56,440 --> 00:31:59,680 Speaker 1: But looking forward, one thing that's interesting is on the 604 00:31:59,720 --> 00:32:02,400 Speaker 1: way down, so many people lost so much money last 605 00:32:02,520 --> 00:32:05,520 Speaker 1: year that when you're looking at places like micro Strategy 606 00:32:05,640 --> 00:32:07,720 Speaker 1: or coin base, or places that are linked to the 607 00:32:07,800 --> 00:32:10,719 Speaker 1: crypto industry, you have an instance in where people are 608 00:32:10,760 --> 00:32:13,400 Speaker 1: looking at, Okay, have we bottom should we get in now? 609 00:32:14,040 --> 00:32:17,240 Speaker 1: As prices of bitcoin start to recover. If you're linked 610 00:32:17,240 --> 00:32:20,200 Speaker 1: to bitcoin, it's an easier way to play the industry 611 00:32:20,720 --> 00:32:25,080 Speaker 1: through infrastructure than it is to really bet on other 612 00:32:25,400 --> 00:32:28,680 Speaker 1: tokens and coins if you're an institutional investor. Micro Strategy 613 00:32:28,760 --> 00:32:31,720 Speaker 1: is still publicly traded stock. So it's interesting. You know, 614 00:32:31,760 --> 00:32:33,800 Speaker 1: we're talking about being in Miami and seeing a lot 615 00:32:33,840 --> 00:32:37,080 Speaker 1: of these big crypto players. I saw Scared Mucci. No 616 00:32:37,160 --> 00:32:40,680 Speaker 1: progress is there as well. There is still an industry 617 00:32:40,760 --> 00:32:44,200 Speaker 1: that is severely bruised. But that balance that you're talking 618 00:32:44,240 --> 00:32:46,960 Speaker 1: about is giving people power to come up and say 619 00:32:47,040 --> 00:32:52,320 Speaker 1: we're surviving basic terrific reporting, Thank you very much. I 620 00:32:52,320 --> 00:32:55,320 Speaker 1: actually want to stick with the conversation around crypto arc 621 00:32:55,400 --> 00:32:58,960 Speaker 1: investment managements. Kathy would spoke to Bloomberg earlier about why 622 00:32:59,080 --> 00:33:01,960 Speaker 1: she's sticking to her bitcoin strategy. You have a listen. 623 00:33:03,320 --> 00:33:08,320 Speaker 1: The confidence actually was strengthened last year. Now, last year 624 00:33:08,440 --> 00:33:13,920 Speaker 1: was was a terrible year for everything crypto. But if 625 00:33:13,960 --> 00:33:18,760 Speaker 1: you think about what happened, it was the centralized opaque 626 00:33:19,800 --> 00:33:24,720 Speaker 1: players who went bankrupt f T x Celsius three hours 627 00:33:24,920 --> 00:33:30,080 Speaker 1: Capital Um and and what did we see from bitcoin? 628 00:33:30,360 --> 00:33:36,760 Speaker 1: Bitcoin is completely decentralized and transparent. It started because of 629 00:33:36,880 --> 00:33:40,440 Speaker 1: oh eight oh nine, the lack of transparency in the 630 00:33:40,560 --> 00:33:45,800 Speaker 1: traditional financial services ecosystem. And I remember when we did 631 00:33:45,840 --> 00:33:50,160 Speaker 1: our research and Art Laugher I mentioned him. I mentioned him. 632 00:33:50,240 --> 00:33:53,719 Speaker 1: The first was on your show. Um. She took us 633 00:33:53,840 --> 00:33:57,920 Speaker 1: through what bitcoin meant to him and it was wow. Art. 634 00:33:58,960 --> 00:34:04,200 Speaker 1: So this is a a rules based momentary. It's a 635 00:34:04,360 --> 00:34:09,040 Speaker 1: rules based digital monetary system, and it's global and and 636 00:34:09,520 --> 00:34:15,680 Speaker 1: there's no human intervention. Uh, it's very disciplined. It's mathematically 637 00:34:15,760 --> 00:34:19,359 Speaker 1: metered to top out at twenty one million units. Well 638 00:34:19,800 --> 00:34:22,799 Speaker 1: in the last year. The response to the last three years, 639 00:34:22,840 --> 00:34:27,600 Speaker 1: the responses to COVID that the fiscal and monetary responses 640 00:34:28,239 --> 00:34:32,840 Speaker 1: that you know in many countries are causing hyperinflation and 641 00:34:33,360 --> 00:34:37,440 Speaker 1: you know fiscal crises. We're seeing protests and riots all 642 00:34:37,520 --> 00:34:41,239 Speaker 1: over the place. Um, well, where do these people go 643 00:34:41,520 --> 00:34:45,320 Speaker 1: for an insurance policy against an implosion in their purchasing 644 00:34:45,400 --> 00:34:51,360 Speaker 1: power and wealth. It is in something like bitcoin. Happy 645 00:34:51,440 --> 00:35:02,680 Speaker 1: with that Netflix password sharing? Why are we all freaking 646 00:35:02,719 --> 00:35:05,080 Speaker 1: out about it? Okay, let's get to the facts. Because 647 00:35:05,480 --> 00:35:07,920 Speaker 1: last year Netflix told us more than a hundred million 648 00:35:07,960 --> 00:35:11,520 Speaker 1: households currently use memberships and Netflix that don't pay for it, 649 00:35:11,760 --> 00:35:14,000 Speaker 1: and they wanted to crack down on this password sharing, 650 00:35:14,320 --> 00:35:17,239 Speaker 1: probably coming into effect in the end of the first quarter, 651 00:35:17,360 --> 00:35:20,160 Speaker 1: that means by March. Now, why are we all freaking 652 00:35:20,200 --> 00:35:22,880 Speaker 1: out right here right now? Or they've already been trying 653 00:35:23,120 --> 00:35:26,360 Speaker 1: ways to curtail password sharing over in Latin America in 654 00:35:26,400 --> 00:35:29,840 Speaker 1: three key countries in fact, Peru, Chili, Costa Rica, and 655 00:35:30,160 --> 00:35:33,880 Speaker 1: they put out a helpful article to tell users in 656 00:35:33,960 --> 00:35:36,960 Speaker 1: those countries about some of the changes. That they published 657 00:35:37,000 --> 00:35:39,799 Speaker 1: it in every single region, So that's why we're all 658 00:35:39,800 --> 00:35:42,440 Speaker 1: worrying about it. So what are we seeing being trialed 659 00:35:42,560 --> 00:35:45,719 Speaker 1: in those three countries. Well, the users are being asked 660 00:35:45,760 --> 00:35:48,160 Speaker 1: to set a primary location for where they use Netflix 661 00:35:48,239 --> 00:35:51,120 Speaker 1: on their devices, and then Netflix will track a mixture 662 00:35:51,160 --> 00:35:55,000 Speaker 1: of IP addresses or device ideas account activity to see 663 00:35:55,000 --> 00:35:58,520 Speaker 1: if anyone outside the wholesehold is using that password. And 664 00:35:58,560 --> 00:36:01,759 Speaker 1: you're going to be incentivized to add members to your 665 00:36:01,840 --> 00:36:04,279 Speaker 1: own household. If you want them to be using it, 666 00:36:04,440 --> 00:36:07,440 Speaker 1: You've got to pay up now right here in the US. 667 00:36:07,840 --> 00:36:11,000 Speaker 1: Take a deep breath. Nothing is exactly happening at this moment, 668 00:36:11,600 --> 00:36:13,920 Speaker 1: but what's clear is Netflix is going to have to 669 00:36:14,040 --> 00:36:17,040 Speaker 1: use all of its storytelling skills to get you and 670 00:36:17,160 --> 00:36:22,280 Speaker 1: I on board with these changes. Oh and the fewer 671 00:36:22,680 --> 00:36:25,880 Speaker 1: the outrage that was across Instagram, that was across Twitter 672 00:36:26,000 --> 00:36:28,400 Speaker 1: as people got this the wrong way around, thought it 673 00:36:28,480 --> 00:36:30,920 Speaker 1: was being enacted in the US immediately. And what was 674 00:36:30,960 --> 00:36:33,479 Speaker 1: so ironic, I suppose is actually Netflix had some strong 675 00:36:33,560 --> 00:36:35,560 Speaker 1: news coming out on Wednesday. They wanted to talk about 676 00:36:35,800 --> 00:36:39,360 Speaker 1: Netflix Spatial audio are better, an amount of more devices 677 00:36:39,400 --> 00:36:42,120 Speaker 1: if you have the premium Netflix subscription, and instead it 678 00:36:42,160 --> 00:36:44,640 Speaker 1: got drowned out by this. We thought this would be 679 00:36:44,920 --> 00:36:48,680 Speaker 1: adds the story for Netflix right add supported tier about 680 00:36:48,680 --> 00:36:51,320 Speaker 1: password sharing and Greg Peters before he was promoted to 681 00:36:51,440 --> 00:36:54,319 Speaker 1: co CEO, that was his project. He was out there 682 00:36:54,360 --> 00:36:57,320 Speaker 1: trying to crack this problem, whether he does it or not. 683 00:36:57,360 --> 00:37:00,840 Speaker 1: I mean, this was a really fascinating reaction, It really was. 684 00:37:00,920 --> 00:37:02,839 Speaker 1: And I think now we're going to have to hear 685 00:37:03,280 --> 00:37:06,520 Speaker 1: from Netflix about how this might be enacted, the trials 686 00:37:06,600 --> 00:37:08,440 Speaker 1: that were going on, and what it's actually going to 687 00:37:08,480 --> 00:37:10,680 Speaker 1: mean for you and me eventually in the US. Remember 688 00:37:10,680 --> 00:37:13,240 Speaker 1: back in they were saying it was all about passwords sharing. 689 00:37:13,280 --> 00:37:15,240 Speaker 1: Now it's a very different matter when it comes to numbers. 690 00:37:15,320 --> 00:37:18,120 Speaker 1: But talking in numbers, the earnings today, I mean, what's 691 00:37:18,120 --> 00:37:21,680 Speaker 1: the afterno ours reaction looking like? Now? Yeah, I mean 692 00:37:21,719 --> 00:37:24,400 Speaker 1: we're still lower across all of those mega caps. And 693 00:37:24,480 --> 00:37:27,200 Speaker 1: what's so interesting is we asked our audience, did you 694 00:37:27,320 --> 00:37:29,480 Speaker 1: think after meata this was us turning the corner for 695 00:37:29,600 --> 00:37:33,040 Speaker 1: tech tech stocks? Actually, everyone on Twitter at least was 696 00:37:33,080 --> 00:37:38,200 Speaker 1: pretty bearish. No, this is a tad cat bounce. Well, 697 00:37:38,360 --> 00:37:42,360 Speaker 1: there's right. It would see that they're pre improved, right, 698 00:37:42,400 --> 00:37:44,520 Speaker 1: although we're coming off our lows, aren't we? After hours? 699 00:37:44,600 --> 00:37:47,000 Speaker 1: And so we'll all go tune into tomorrow what exactly 700 00:37:47,000 --> 00:37:48,920 Speaker 1: the numbers look like, how we perform in terms of 701 00:37:49,080 --> 00:37:52,000 Speaker 1: tech stocks. But this addition of bl technology, do not 702 00:37:52,120 --> 00:37:56,040 Speaker 1: forget to Tune in to Twitter spaces Friday midday. That's 703 00:37:56,040 --> 00:37:58,320 Speaker 1: twelve noon, right head, Yeah, I got the crew of 704 00:37:58,400 --> 00:38:01,120 Speaker 1: me and a special guest. This is Bloomberg.