Speaker 1: From Mahard where Innovation of money and power Collie in
Speaker 1: Silicon Valley.
Speaker 2: N Beyond This is Bloomberg Technology with Caroline Hyde and
Speaker 2: Ed Ludlove.
Speaker 3: Ed Lovelow here in San Francisco. Caroline hides off today.
Speaker 3: This is Bloomberg Technology coming up on the program for
Speaker 3: earnings coverage ahead from Qualcom to Etsy, Expedia and beyond.
Speaker 4: We got you covered.
Speaker 3: Plus, we sit down for an exclusive conversation with Flexport
Speaker 3: founder Ryan Peterson, who's joined Founder's Fund as a partner.
Speaker 3: His thoughts, where he's going to invest in the world,
Speaker 3: adventure capital and super conductivity. It's having a moment. Everyone
Speaker 3: is obsessed. We'll explain why a potential breakthrough in the
Speaker 3: technology has been driving both excitement and controversy.
Speaker 4: Let's get a quick look at the markets. First.
Speaker 3: We are treading more frankly on the technology corners of
Speaker 3: the equity market. You look at the Nazek one hundred. Basically,
Speaker 3: flat earning is a big part of the story. But
Speaker 3: we see as sell off in treasuries. The yield on
Speaker 3: the US Tenure Treasury at its highest level in nine months.
Speaker 3: There is concerns about the costs of borrowing more dynamic movement.
Speaker 4: In the chip space.
Speaker 3: The Philadelphia Semiconductor Index or SOCKS underperforming software by three
Speaker 3: tens to one percent. A big part of that is
Speaker 3: Quowcom down ten percent. We will get to those details
Speaker 3: with bloombergs Ian King shortly. The two big ones that
Speaker 3: we're braced for, Apple and Amazon report after the bell.
Speaker 3: We're going to look ahead and think about what the
Speaker 3: macro environment means for those two names, both from the
Speaker 3: consumer perspective, but when it comes to Amazon also the
Speaker 3: cloud narrative with AWS. Remember last week Microsoft showed slow
Speaker 3: in growth in cloud that is their biggest direct competitor.
Speaker 3: Does it translate to AWUS two earnings already out and
Speaker 3: weighing on markets this morning, Etsy and Quowdcom study Wetsy, Yeah,
Speaker 3: Look we're down twelve percent. Concern about the growth outlook
Speaker 3: for them. We're going to go talk to Schwedder Cajuria
Speaker 3: about that in just a moment.
Speaker 4: And then Qualcom down ten.
Speaker 3: Percent, tracking on a closing basis for its biggest drop
Speaker 3: since March of twenty twenty. The story here is that
Speaker 3: this is the biggest maker of smartphone processes in a
Speaker 3: market for smartphones that is having one of the most
Speaker 3: severe slowdowns for a long time and it continues. The
Speaker 3: outlook that they gave was worrying for the current period.
Speaker 3: For more, let's bring in Bloomberg's Ianking. He covers everything
Speaker 3: semiconductors for us. What were the sort of main takeaways
Speaker 3: from that earnings print in Yeah.
Speaker 5: I mean, the big focus here was where are we
Speaker 5: with the smartphone inventory correction? And the answer was, we're
Speaker 5: still in that inventory correction China.
Speaker 4: You know, everybody was.
Speaker 5: Hoping the Chinese consumer would come back, and that just
Speaker 5: doesn't appear to be the case.
Speaker 3: It's the main market, right, and you forget that in
Speaker 3: China there are many domestic players who make Android platform phones.
Speaker 3: The other data point that we get from Qualcon is
Speaker 3: this full year shipment's forecast. What did they say about
Speaker 3: twenty twenty three relative.
Speaker 5: To Yeah, I mean, it's a down year. You know,
Speaker 5: we're looking high single percentages down from a year ago,
Speaker 5: and that clearly indicates that not only have we still
Speaker 5: got inventory, but also consumers just aren't coming rushing back.
Speaker 3: When I think of Qualcomm, I said it just then
Speaker 3: the biggest maker of smartphone processes. The other side of
Speaker 3: their business is modems, and we are always asking questions
Speaker 3: about the future relationship between Qualcomm and Apple and the iPhone.
Speaker 3: What did Cristiano I'm on the CEO say about that?
Speaker 5: Yeah, I mean this is this always comes up on
Speaker 5: their call. This is always a point of contention because
Speaker 5: obviously they had a massive legal fight and Apple was
Speaker 5: forced to go back to them and ask for their technology.
Speaker 5: So that's the background. What he did was confirm that
Speaker 5: when we have the new iPhone later this year, qual
Speaker 5: Com will be in there. Their modem will be what
Speaker 5: takes that iPhone through the until next year. And just
Speaker 5: want to know, so, hey, is this the end of
Speaker 5: the show? Do Apple do their own thing? As Bloomberger's reported,
Speaker 5: And he just refused to talk about that. So that
Speaker 5: leaves open the potential that maybe we'll see Qualcom in
Speaker 5: there in the future.
Speaker 3: We were just showing actually some of what Christian Ammon
Speaker 3: was saying. I want to bring those comments back because
Speaker 3: the other standalone story was then reacting to this environment
Speaker 3: with cost cutting measures and that includes job cuts.
Speaker 4: What did they say, Yeah, No.
Speaker 5: I mean we'll then actually say explicitly on the call,
Speaker 5: but if you deald into the filings as we did,
Speaker 5: you saw that they'd had more than two hundred million
Speaker 5: dollars of severance payments in the previous quarter, and then
Speaker 5: they said, look, this is likely going to recur again
Speaker 5: in this quarter. So clearly they are moving around their workforce.
Speaker 5: They said, look, we're going to concentrate our resources on
Speaker 5: what gets us going in the future, but that means
Speaker 5: that they're probably going to shed some jobs in other
Speaker 5: parts of the company.
Speaker 3: That's what we do here at Bloomberg Technology, not just
Speaker 3: the earnings print, not just the call that Ian King
Speaker 3: goes saluthing through the filings and that's where we find
Speaker 3: the GC details blooms in King, thank you very much.
Speaker 4: The other name that we're talking about top of the.
Speaker 3: Show, Etsy falling is look basically failed to re ensure
Speaker 3: investors on growth s get more on Etsy's earnings and
Speaker 3: bring in Sweater, Cajuria, ever core Isa and lest Sweater.
Speaker 3: You've got an outperform rating on etc. Which is interesting,
Speaker 3: also a one oh five price target. What were the
Speaker 3: main takeaways for you from that earning sprint?
Speaker 6: Thanks for having me, and a few things.
Speaker 7: One, there were some positives and then clearly there are
Speaker 7: some negatives and as you mentioned, the stuffs trading off.
Speaker 7: Part of the reason why the shares may also be
Speaker 7: traded on off, however, is that there was some run
Speaker 7: up into the print with expectations, so modest expectations correction
Speaker 7: in addition to just a lower than expected guide.
Speaker 6: So on fundamentals too.
Speaker 7: In terms of what I took away from from the
Speaker 7: earning skull, there are some green shoots.
Speaker 6: First thing is that buyers came.
Speaker 7: In at an all time high second consecutive quarter of
Speaker 7: year of your growth. Second is that the habitual buyer,
Speaker 7: which account for about forty five percent of their GMS,
Speaker 7: actually started showing signs of stabilization, and that's a key metric.
Speaker 7: And then third is GMS per active buyer, which is
Speaker 7: somewhat of a purchase frequency proxy, also showed signs of
Speaker 7: stabilization and that's also a great metric in terms of
Speaker 7: looking at improvement.
Speaker 6: So what did not work well?
Speaker 7: Etsy is a highly discretionary platform and they are continuing
Speaker 7: to see pressure macroeconomic pressure on the consumer wallet. They
Speaker 7: did call out that households that make less than one
Speaker 7: hundred thousand dollars in income are seeing a mix shift
Speaker 7: in spent away from discretionary to nondiscretionary spend.
Speaker 6: They also talked about some categories seeing.
Speaker 7: Some green shirts, such as home and living crafts in apparel,
Speaker 7: but there are a lot of other discretionary categories that
Speaker 7: are pressured. And they also are talking about just generally
Speaker 7: consumer spent being pressured because of the end of student
Speaker 7: loan forbearance as well as the child tax credit that
Speaker 7: will be coming in. So all of that is pressuring
Speaker 7: the consumer spend and they are highly skewed towards discretionary spent.
Speaker 3: I want to think about it. See is a technology
Speaker 3: platform sweter. You know, it is a place where the
Speaker 3: consumer meets small retailers all over the country, all over
Speaker 3: the world of different sizes. But what is it that
Speaker 3: differentiates them from a technological perspective.
Speaker 6: Well, there are a couple of things.
Speaker 7: So first is that it's the type of product that
Speaker 7: they offer on their platform. It is very difficult to
Speaker 7: create a marketplace with a sticky set of sellers which
Speaker 7: they have and a largely sticky set of buyers who
Speaker 7: are either coming to the platform at least once a year,
Speaker 7: if not more, on a regular basis. And that itself
Speaker 7: is lightning in a bottle. That's very difficult to replicate
Speaker 7: at scale. Now they have over ninety million active buyers,
Speaker 7: so that's really good scale in some of their core markets.
Speaker 6: That's number one.
Speaker 7: And second is a uniqueness of the products that are
Speaker 7: offered so often times at Seeds compared to an Amazon
Speaker 7: or an eBay, but they know what they stand for.
Speaker 7: It's not the typical auditized product that you can compare
Speaker 7: prices over across different platforms, whether it's offline or online.
Speaker 7: It's really a unique custom item that you want which
Speaker 7: is special, which means something to put customers across different categories.
Speaker 7: And they have created a place for themselves in that
Speaker 7: sort of you know e commerce when we think about
Speaker 7: e commerce as a category, and so that is.
Speaker 6: Unique about them.
Speaker 7: And then the other thing about the technology is they
Speaker 7: when we think about where ets was and where.
Speaker 6: It came, I mean several years ago, they didn't have
Speaker 6: the management team that they have today.
Speaker 7: This is a truly a turnaround story, and a huge
Speaker 7: reason why it's a turnaround is because what they did
Speaker 7: to the product, the user experience is phenomenally better, and
Speaker 7: the search experience is so much better, and they are
Speaker 7: constantly iterating on it to drive user experience and engagement
Speaker 7: on their platform.
Speaker 6: So far, they've done a great job.
Speaker 4: Schweida.
Speaker 3: The FIFA Women's World Cup is on right now, and
Speaker 3: that's got us thinking about Fubo TV report before market Friday.
Speaker 4: What are you expecting from them?
Speaker 3: I find them such an interesting platform, the teeny tiny
Speaker 3: but they still stand out in the market they do.
Speaker 7: We actually are on the sidelines with Gougo primarily because
Speaker 7: we think that they do have profitability issue.
Speaker 6: Now, this was an asset.
Speaker 7: This is a business that went public when businesses were
Speaker 7: given credit for, you know, just driving top line growth
Speaker 7: at the cost of bottom line, but that no longer
Speaker 7: holds true, and now Fubo.
Speaker 6: Is at a place where not only do.
Speaker 7: They have competitors which are much bigger than them, but
Speaker 7: they also have to focus on raining in their top
Speaker 7: line growth. It's so bad they can become profitable. They
Speaker 7: also have debts that they need to think about, and
Speaker 7: they have a limited liquidity, so they're trying to not
Speaker 7: have another capital raise and become self sustaining, and in
Speaker 7: a while they do that, they also have to show
Speaker 7: top line growth.
Speaker 6: So that is the biggest challenge.
Speaker 7: That Googo has and that's why we're on the sideline,
Speaker 7: just specifically to the sport. They typically guide conservatively, and
Speaker 7: this connective TV engagement has been going up. We saw
Speaker 7: a pretty good beat at local for example, and overall
Speaker 7: the demand for live sports, especially because of the writers strike,
Speaker 7: Viewers are shifting a little bit towards live sports as
Speaker 7: well as news because of.
Speaker 6: The lack of content.
Speaker 7: Yes, Hollywood writers strike, so that should also benefit Fubo
Speaker 7: at the margin. So I expect a beat and a
Speaker 7: bracket sort of a quarter, But fundamentally this is an
Speaker 7: asset that we question in terms of the longevity of
Speaker 7: the business.
Speaker 3: Yeah, that consumer behavior questions exactly where I wanted to go.
Speaker 3: I subscribe to every platform under the sun. I love
Speaker 3: all sports, but you can get what you get on
Speaker 3: Fubo elsewhere as part of a broad package. I'm thinking,
Speaker 3: like Peacock Paramount Plus for example, how do.
Speaker 4: They survive in that landscape.
Speaker 3: It's so crowded and when you have a tough macro environment,
Speaker 3: consumers have to make a choice.
Speaker 6: That's absolutely true.
Speaker 7: Pubo's value proposition is they have at the margin, they
Speaker 7: have some exclusivity on content.
Speaker 6: So regional sports, for example.
Speaker 7: You can find only on Pubo, and then there's some
Speaker 7: soccer games that you can find only on Google, so
Speaker 7: at the margin there is some exclusive content that you
Speaker 7: can get on Google. The second thing is also just
Speaker 7: the user engagement.
Speaker 6: Google was built post.
Speaker 7: All this connected TV everything came on, so their product
Speaker 7: is very new, it's not our take, and it's easy
Speaker 7: to use as well. It's easy to navigate, so that's
Speaker 7: another reason why UH viewers are choosing Fubo where maybe
Speaker 7: some of the other platforms. And then finally the third
Speaker 7: thing is that they do have a They have created
Speaker 7: a brand name around themselves where almost all viewers view
Speaker 7: them as a sports first offering, and it's good branding
Speaker 7: on their part, but it's you know, the marginally exclusive content,
Speaker 7: but still that brand name of their sports first and
Speaker 7: they offer a lot of engaging sort of user experiences
Speaker 7: when you're watching football as it leads to fantasy etc.
Speaker 6: And that's as for you to use Pubo.
Speaker 3: We got to keep talking about it, you know it
Speaker 3: later shows because Messy Mania, in the context of Apple
Speaker 3: TV is really put football soccer in this country in
Speaker 3: the streaming issue. Front has said Schwedder Cajuria Ever, Koris I,
Speaker 3: we love having you on the show.
Speaker 4: Thank you for your thanks for having me.
Speaker 3: Shopify made progress in its attempt to prioritize its core
Speaker 3: business after cost cutting and price changes. The Canadian e
Speaker 3: commerce giant reported second quarter sales and profit that beat
Speaker 3: analyst expectations. President Harley Finkelstein said the results speak to
Speaker 3: Shopify's efforts to improve shipping and expland its global merchant base.
Speaker 3: Harley joins us Now, good morning, good afternoon to you.
Speaker 4: Harley.
Speaker 3: Okay, so a beat in the quarter, somewhat negative share reaction,
Speaker 3: and Morgan Stanley actually raised it price target on the
Speaker 3: stock fifty four dollars to fifty nine. But they point
Speaker 3: out that what was missing was a roadmap for investors
Speaker 3: to understand how you're going to grow in the future.
Speaker 4: So let's start there. How are you going to grow
Speaker 4: in the future.
Speaker 8: Well, look, I mean you started by talking about our
Speaker 8: announcement last quarter when we reported on Q one, we
Speaker 8: talked about that we are really you know, creating a
Speaker 8: new shape or ketting a new shape of shop Flight
Speaker 8: make sure we can go faster with greater talent density
Speaker 8: for focus on our main quest, which is commerce software
Speaker 8: and retail software. And the results are you know, the
Speaker 8: results exemplify that right. Revenue is up thirty one percent
Speaker 8: to one point seven billion gmbs up to seventy was
Speaker 8: up to fifty five billion dollars. That's up seventeen percent.
Speaker 8: I think the thing that people missed, however, is that
Speaker 8: we are also earning more parts of merchants businesses. We
Speaker 8: use a metriccure called the product attach rate, which measures
Speaker 8: the usage of our products, all of our products by
Speaker 8: our merchants, and that was above three percent for the
Speaker 8: second time. All that and we also had the third
Speaker 8: consecutive quarter of positive free cash flow and we expect
Speaker 8: that actually free cash flow profitability for the third quarter
Speaker 8: of this year to be great at the entire first half.
Speaker 9: So we're really firing in all cylinders here.
Speaker 8: But in terms of our you know, the future and
Speaker 8: what we're looking to do next, there's a couple things.
Speaker 9: First of all, we now.
Speaker 8: Know that most people that are considering starting a business
Speaker 8: do so with Shopify. People that have ideas in the
Speaker 8: shower in the morning, aspirational entrepreneurs, Shopify is the go
Speaker 8: to for them. Now we know all not all will succeed,
Speaker 8: but the ones that do come to Shopify and stay
Speaker 8: with Shoplight long to the future. I mean that's the
Speaker 8: Gym Sharks stories, that's the all Bird story, the fig story,
Speaker 8: these homegrown success stories. But we're also seeing very large
Speaker 8: brands coming to Shopify as well. Whether it's companies like Spank,
Speaker 8: or it's Mattel, or it's Colossier, or it's Staples.
Speaker 9: We're seeing the enterprise come to us too. So that's
Speaker 9: the first thing.
Speaker 8: The second thing is when you look horizontally about our
Speaker 8: through our merchant solutions, whether it's Shopify Payments or Shopify
Speaker 8: capital or shop Flight audiences which helps you buy ads
Speaker 8: more effectively, or things like Collective, you're seeing we are
Speaker 8: looking across every pain point that a merchant may have
Speaker 8: and making it easies. Even and I were talking offline earlier,
Speaker 8: just before we started about the size of Shopify in
Speaker 8: Shopify now powers more than ten percent of all US
Speaker 8: e commerce retail which means that if we were a retailer,
Speaker 8: we'd be the second largest retailer in America online retailer
Speaker 8: in America. And that means that we can now get
Speaker 8: incredible economies of scale and give them to the millions
Speaker 8: of stores that you shopify, and we are set up
Speaker 8: with the future and we're Yeah.
Speaker 3: So, Harley, I understand this story. The primary growth engine
Speaker 3: business formation, and those new businesses stay.
Speaker 4: With you for a long time.
Speaker 3: So what happens in a recession when new businesses are
Speaker 3: not formed.
Speaker 9: Yeah, there's two things that happen in a recession.
Speaker 8: First of all, existing businesses look to one modernize the
Speaker 8: technology software they use, and they look to also find
Speaker 8: the best value, the best value in the software to use.
Speaker 4: That's Shopify.
Speaker 8: I mean, for thirty nine dollars a month, you can
Speaker 8: build a multimillion dollars in some cases a multay billion
Speaker 8: dollar company. So Shopify's value to cost ratio is so
Speaker 8: far on the side of value that even in times
Speaker 8: of recessionary pressure, we've seen more and more merchants migrate
Speaker 8: to Shopify.
Speaker 9: That's the first thing.
Speaker 8: The second thing is on the consumer side. One of
Speaker 8: the other things that we're seeing in you know, the GMV.
Speaker 8: This quarter demonstrates that we had we saw fifty five
Speaker 8: billion dollars of GMV flow through Shopify. Consumers in these
Speaker 8: recessionary times vote with their wallets to buy direct from
Speaker 8: the brands they really care about, and all those brands
Speaker 8: are on Shopify as well. So both on the merchant
Speaker 8: side and the consumer side. We think that we've been
Speaker 8: around for almost two decades now, we've seen that we
Speaker 8: do well in both, you know, Boom cycles and and
Speaker 8: and and bear cycles, and we'll continue doing that.
Speaker 3: Harley, can you quantify it the exposure that the Shopify
Speaker 3: has to new business versus I suppose the way of
Speaker 3: putting it is established online merchants.
Speaker 9: Yeah, that's the best part ed. We can do both.
Speaker 8: So the idea that you can start, you know, you
Speaker 8: can you have an idea in the morning to sit
Speaker 8: down at your mom's kitchen table or at a coffee
Speaker 8: shop and you can build a store on shop line
Speaker 8: a matter of a couple of hours for thirty nine dollars.
Speaker 8: We see that happening every single day. At the same time,
Speaker 8: we're seeing much larger brands migrate over to Shopify as well,
Speaker 8: whether it's the Alo Yogas or the Viewrys or the
Speaker 8: Spanks or Supreme, one of my favorite brands coming on
Speaker 8: to us to leverage this enterprise scale software. So that's
Speaker 8: the great part of the business model. It isn't simply
Speaker 8: just one segment of the market. It's the entire e
Speaker 8: commerce stack. And then when you think about the future
Speaker 8: of retail being retail everywhere. I mean our point of
Speaker 8: sale product this particular quarter had an incredible had incredible quarter.
Speaker 9: We're now going and ripping it and.
Speaker 8: Replacing old, dilapidated traditional point of sale system with shop
Speaker 8: by point of sale, and what you end up with
Speaker 8: is a fundamentally a retail operating system.
Speaker 9: And I think that's what modern retailers want. They want
Speaker 9: one single.
Speaker 8: Place where they have an entire view of their business,
Speaker 8: regardless of sales channels. I heard a previous guest talk about,
Speaker 8: you know at sea being a great sales channel. Well,
Speaker 8: from Sharpify, you can push products at etty if you want.
Speaker 8: You can also push products to TikTok and Instagram and
Speaker 8: online and offline and everywhere.
Speaker 9: But it all feeds back into one.
Speaker 8: Centralized retail operating system, and that really is a sharp
Speaker 8: line product.
Speaker 3: There's a relationship between Shopify and Amazon, Amazon reporting after
Speaker 3: the bell, and it's focused on fulfillment.
Speaker 4: A lot of.
Speaker 3: Folks I've spoken to want to understand what progress is
Speaker 3: there the relationship with Amazon and shop Fire.
Speaker 4: To many, it's kind of been a slow mover.
Speaker 2: Yeah.
Speaker 8: Look I said this on the car yesterday because I
Speaker 8: got a question just like this. You know, we're still
Speaker 8: progressing there, but there's no news for a problem that
Speaker 8: just yet.
Speaker 4: Okay, understood.
Speaker 3: We started this segment talking about the cost cuts you've made,
Speaker 3: particularly in the context of profit, and then the roadmap,
Speaker 3: a lack of roadmap for future growth. To excuse me
Speaker 3: to cost cuts continue? Or are you going to start
Speaker 3: investment mode again to start growing this business?
Speaker 1: Yeah?
Speaker 8: And the important part to understand but opify that I
Speaker 8: think a lot of our investors, and I should think
Speaker 8: you probably know this too, is that we have always
Speaker 8: been very thoughtful but spending, and we've always spent in
Speaker 8: a very disciplined fashion. We were not raised on venture
Speaker 8: capital the way some of our peers were, so we
Speaker 8: always from the very early days of Shopify, we always
Speaker 8: made sure we stretched every dollar. So spending will happen,
Speaker 8: but in a very disciplined fashion. And so what we
Speaker 8: think what we're seeing is that while opex will remain stable,
Speaker 8: revenue will continue to grow in revenue again up thirty
Speaker 8: one percent year on year. When we see opportunities, however,
Speaker 8: where we can actually have incredible returns right now, for example,
Speaker 8: and things like offline marketing and point of sale where
Speaker 8: the cost of customer acquisition profiles look really in line
Speaker 8: with an optimal CAC to LTV ratio, We're going to
Speaker 8: take those and we'll spend there, but we will always
Speaker 8: do so in an incredible an incredibly disciplined fashion. In
Speaker 8: terms of the team size that you mentioned, we want
Speaker 8: to make sure we retain the best and the brightest
Speaker 8: on Shopify. We really like the size of the company
Speaker 8: right now. We expect head counter remain largely consistent and
Speaker 8: we're not looking at undo any the head count decisions
Speaker 8: from last quarter. But obviously we do want to make
Speaker 8: sure the best um breads come here and stay here
Speaker 8: and what can you do so in a very discipline
Speaker 8: buffer with all.
Speaker 3: Right, Shopify President Harley fink Lstein, When you're ready to
Speaker 3: talk about Amazon, do it back here on Bloomberg Technology.
Speaker 4: Thank you. They're coming up here on the show.
Speaker 3: A new high score for Nintendo for the release of
Speaker 3: some new summer games. You know exactly the title I'm
Speaker 3: talking about. Earning's recap coming up next, watching shares the
Speaker 3: door Dash reporting record numbers for delivery orders in the
Speaker 3: second quarter.
Speaker 4: Consumer commitment to.
Speaker 3: Take out despite those rising prices, shares up four point
Speaker 3: eight percent.
Speaker 10: This is Bloomberg Technology.
Speaker 4: Time for talking tech.
Speaker 3: First up, Nintendo hit a new high for first quarter
Speaker 3: profit after the successful launch to its latest legend of Zelda.
Speaker 3: The game propped up sales of this console, and the
Speaker 3: Super Mario Bros. Movie tripled Nintendo's licensing income. The Kyoto
Speaker 3: based company reported op profit of one point three billion,
Speaker 3: beating expectation. Class investors continue to pile into Korean stocks
Speaker 3: related to superconductors amid claims of breakthroughs in the tech.
Speaker 3: We'll talk about that one a bit later in the show,
Speaker 3: amid some development and Juell seeking to raise about a
Speaker 3: billion dollars that according to Bloomberg sources, the e cigarette
Speaker 3: company that almost went bankrupt last year, is working with
Speaker 3: Jeffrey's financial group.
Speaker 4: On the fundraising effort.
Speaker 3: While Jewell's valuation in the round remains unclear, it's expected
Speaker 3: to be dramatically lower than the thirty eight billion dollars
Speaker 3: it was worth in twenty eighteen. Now coming up here
Speaker 3: on Bloomberg Technology, traveling with AI, what it means, the
Speaker 3: tail end of travel season and their earnings with Expedia
Speaker 3: CEO Peter Kern From here, in San Francisco. This is
Speaker 3: Bloomberg Technology. Welcome back to Blueblow Technology. Ed Lovelow here
Speaker 3: in San Francisco. We're looking at shares of Expedia now
Speaker 3: down seventeen percent, posit on track for its biggest drop
Speaker 3: since March of twenty twenty. Some concerns about top line growth.
Speaker 3: Second quarter profit was above forecasts. We're entering the kind
Speaker 3: of key period or tail end of the summer travel season.
Speaker 3: Joining them now Expedia CEO Peter Ker, and Peter we
Speaker 3: do have to start with the reaction. The stock is
Speaker 3: down seventeen percent. Is the concern from the market justified
Speaker 3: about the growth trajectory of your company?
Speaker 2: No, absolutely not.
Speaker 11: I mean, we basically delivered what we told the market
Speaker 11: we were going to deliver, and in the quarter just
Speaker 11: past the quarter, we launched our new big rewards program.
Speaker 11: We've made huge technical advancements, and we reaffirmed our yearly guidance.
Speaker 2: So not sure what the market was looking for.
Speaker 11: They're looking for concerns about the consumer, But basically we
Speaker 11: were on our plan and really excited about the back
Speaker 11: half of the year, So we were you know, other
Speaker 11: than the charts you have buying me, we're very excited
Speaker 11: about where we are.
Speaker 3: So, so, Peter, what's the story, you know, how do
Speaker 3: you see this travel season having played out and what
Speaker 3: are your signs into the rest of the year about
Speaker 3: bookings and the health of the consumer, because it is
Speaker 3: what the story wants to know about, as you.
Speaker 11: Note, yeah, yeah, absolutely, no, I mean when we look
Speaker 11: ahead our pacings for the year up versus last year
Speaker 11: and prior periods, all prior periods, basically we've had, you know,
Speaker 11: very good. There's been very high interest in international travel.
Speaker 11: What you've seen is the travelers moving around a bit.
Speaker 11: So you see pockets that might be retreating a little bit,
Speaker 11: but other pockets advancing. So Asia is very strong, Latin
Speaker 11: America is very strong. The West US, North America, and
Speaker 11: Western Europe you know, have slowed somewhat, but they've been stable.
Speaker 11: So basically, customers will around. Cities are very popular, International
Speaker 11: cities are very popular. International travel has definitely equipped domestic
Speaker 11: in the rebound. Again, it's sort of this COVID unroll
Speaker 11: that we've seen again and again. People go where the
Speaker 11: next thing opens up or where they haven't been able
Speaker 11: to go. So domestic was very big, then international got big.
Speaker 11: Now Asia's coming up because Asia is opening up, so
Speaker 11: we see it in waves, and you know, as we
Speaker 11: look out, the consumer is very strong in travel, demand
Speaker 11: remains high. There's not much evidence of really at all
Speaker 11: of ADRs. You know, pricing dropping. Yes, you can find
Speaker 11: that domestic air in North America the prices have come
Speaker 11: down a little, but in international.
Speaker 2: Air they're still very elevated.
Speaker 11: And international hotel hotel generally has been very stable in ADRs.
Speaker 11: So there really isn't much evidence of a consumer lapse
Speaker 11: here in any way.
Speaker 3: Peter, you're joining us from London. In fact, you're sitting
Speaker 3: in the chair that I used to sit in when
Speaker 3: I was at QBS. It's a nice chair. Is there
Speaker 3: a sort of different perentiation between the health in different
Speaker 3: markets of the London consumer, European consumer and what we're
Speaker 3: seeing here in the United States.
Speaker 11: Well, I think you know again, you're seeing, first of all,
Speaker 11: there's a lot of people from the United States in
Speaker 11: London right now. You know, Europe has been a popular
Speaker 11: destination for North American travelers this summer because last summer
Speaker 11: they weren't traveling as much internationally. So now every city
Speaker 11: in Europe is full of Americans and likewise, European travelers
Speaker 11: are traveling to other international cities, so you're seeing a
Speaker 11: lot of that, but the health of the consumer is strong.
Speaker 11: You know, we still haven't really seen it even at
Speaker 11: the lower ends. It doesn't mean there isn't you know,
Speaker 11: you can't find a pocket of a city or a
Speaker 11: destination that's slightly lower for example, mountain destinations beach destinations
Speaker 11: are slightly less popular this year in favor of big
Speaker 11: international cities. But it doesn't mean the travelers less willing
Speaker 11: to travel or spend.
Speaker 2: It just means they're moving their.
Speaker 11: Dollars around and that creates small pockets that might you know,
Speaker 11: where you might see some reduced interest, but that's from
Speaker 11: super high elevated.
Speaker 2: Interest across most of these markets.
Speaker 11: So this is you know, a slight teaming and a
Speaker 11: few spots and strength in other spots that make.
Speaker 2: Up for it.
Speaker 3: You've been doing some investment in technology, technological streamlining behind
Speaker 3: the scenes, so the sort of.
Speaker 4: Loyalty and rewards program.
Speaker 3: How do you see that driving your business in the
Speaker 3: near term but also longer term as well.
Speaker 2: Yeah, it's a huge investment for us.
Speaker 11: I mean, first of all, we've invested over the last
Speaker 11: few years in a huge technological transformation to bring all
Speaker 11: our stacks together, all our brands together on one technology
Speaker 11: so we could go faster, innovate faster for the consumer,
Speaker 11: and really our loyalty. Our new loyalty rollout of one
Speaker 11: Key is a great example of all of that coming together,
Speaker 11: where now our big three brands will be under one
Speaker 11: loyalty program so Expedia, Hotels, dot Com and Verbo people
Speaker 11: can earn rewards which is basically like money, spend it
Speaker 11: on any product they want across all of those brands.
Speaker 11: And it's you know, it's the culmination of a bunch
Speaker 11: of work that's been going on for more than two
Speaker 11: years to really change our future. And our idea is
Speaker 11: a simple one, which is we want to build the
Speaker 11: best products that consumers are loyal to get them into
Speaker 11: our loyalty plans, get them into our app where they
Speaker 11: can have the best experience, see the most discounts, the
Speaker 11: most rewards for their travel, and that that will create
Speaker 11: a sticky relationship with our consumers and they'll come back
Speaker 11: direct to us. And we've seen it again and again
Speaker 11: in every industry. We think there's huge opportunity for innovation
Speaker 11: and travel and we think we're doing the most with technology,
Speaker 11: with AI and machine learning to personalize and all of
Speaker 11: those pieces to really create the next step forward. You know,
Speaker 11: we invented the category, and we're trying to reinvent the
Speaker 11: category for the next decade or two with new product,
Speaker 11: better consumer proposition, and really a much stickier, less just
Speaker 11: transactional kind of product that travel used to be.
Speaker 3: So bear with me on this one that in Metas earnings,
Speaker 3: we saw evidence that AI recommendations boosted their AD sales.
Speaker 3: As an example, give me some tangible examples of how
Speaker 3: artificial intelligence aids the consumer on your platform but also
Speaker 3: just helps you guys make more money.
Speaker 11: Yeah, so we use it really everywhere we can, and
Speaker 11: that doesn't mean everywhere yet, but throughout the product, from
Speaker 11: everything from optimizing the pictures you see.
Speaker 2: You know, you might be.
Speaker 11: Traveling with a family or kids and we will show
Speaker 11: you pools, or maybe you're traveling by yourself or a
Speaker 11: couple and we might show you bars or rooms or
Speaker 11: other things like we optimize that, We optimize how you search.
Speaker 11: We use machine learning to better move the pieces around
Speaker 11: the page so you're seeing the things that are most
Speaker 11: relevant to you. These most easily or to simplify how
Speaker 11: you shop. So you might know that some rooms are
Speaker 11: called the Queen Size Superior, some rooms are called the
Speaker 11: King size, some of the city view. You know, we've
Speaker 11: done all the work to compare all those things so
Speaker 11: that you can easily see them side by side and understand, uh,
Speaker 11: you know, using AI and mL understand what the options
Speaker 11: really mean and what the differences are. So we're using
Speaker 11: it in all kinds of simple and elevated ways. We've
Speaker 11: also put shat GPT into our iOS app. We just
Speaker 11: launched it in our Android app. So we're giving people
Speaker 11: that utility if they want to use it for discovery,
Speaker 11: and then we save products that they've looked at and
Speaker 11: they can go compare them later.
Speaker 2: So there's lots of places we use it.
Speaker 11: But some of them are quite simple and straightforward, you know,
Speaker 11: personalized search and other things, and some of them are
Speaker 11: the latest large language models and all of those opportunities
Speaker 11: that are still ahead of us.
Speaker 3: All right, Expedia ceop to Kern, thank you so much
Speaker 3: for your time. Another stock that we're watching, Aurora Innovation,
Speaker 3: just raise the better part of the billion dollars. The
Speaker 3: self driving company working with transportation industry leaders like Toyo
Speaker 3: to FedEx Volvo to basically operationalize self driving semi trucks,
Speaker 3: but also we think about consumer vehicles. The stock down
Speaker 3: seven tens one percent, have been up earlier in the session.
Speaker 3: The story in the court gone shrinking losses, which is
Speaker 3: a good thing. Joining us now or Aurora CEO, Chris Holmson,
Speaker 3: it's good to see you in person again.
Speaker 2: Yeah, once in a while.
Speaker 4: Let's start with the money.
Speaker 3: You know, it's eight hundred and twenty million dollars or so,
Speaker 3: how have you explained to investors how you're going to
Speaker 3: use it?
Speaker 1: Really, so, I think first and foremost, it is kind
Speaker 1: of incredible to raise that money in this environment. Really
Speaker 1: a strong vote of confidence from the investor community. What
Speaker 1: it's about is delivering our products. So next year we
Speaker 1: expect to have trucks on the road with nobody in
Speaker 1: them and begin commercializing automated trucking.
Speaker 3: You and I have spent some time together in Texas
Speaker 3: on the road in these semi trucks, you know, with
Speaker 3: the safety driver grand tipped. Just explain the pathway to
Speaker 3: making money on a business like that. I mean, for
Speaker 3: those that's the frustration understanding the application of the tech
Speaker 3: in the real world.
Speaker 1: Well, we have the opportunity of having a product that's
Speaker 1: going to have an incredible impact for our customers. We
Speaker 1: can help their top line and really drive down their
Speaker 1: bottom line. So, if you're a trucking company today, what
Speaker 1: you really think about is how much money can I
Speaker 1: make per truck? And you're limited based on the fact
Speaker 1: that people are limited to drive trucks eleven hours a day.
Speaker 4: With your raw driver, we.
Speaker 1: Expect to be able to drive twice as much and
Speaker 1: so you can double the revenue per truck while making
Speaker 1: it easier to have drivers by making it safer on
Speaker 1: the road, improving your performance as a business.
Speaker 3: We have seen this industry consider its long term WAYMO
Speaker 3: has reevaluated it's trucking business and refocused on the passenger vehicle.
Speaker 3: How do you view that split? Do you want to
Speaker 3: do both or just focus on the core trucking business.
Speaker 1: So we've been building a driver to work for both
Speaker 1: from day one. Now we're going to focus on trucking first,
Speaker 1: but we have an incredible partnership with both Toyota and
Speaker 1: Uber for the long term. We see trucking as a
Speaker 1: really great way to build a business. Here because the
Speaker 1: opportunity is so clear and present. The market is about
Speaker 1: ten times bigger than the right heiling market, and the
Speaker 1: unit economics are much stronger. So for a new technology,
Speaker 1: that's really what you're looking for as a business where
Speaker 1: you can grow into it and.
Speaker 2: Be profitable very quickly.
Speaker 3: We had Dara Kostrashahi on the show last week and
Speaker 3: this week by loose sense of tractive of time, But
Speaker 3: the point is it's a partnership between the two of you.
Speaker 3: I think Dara's on your board as well. So explain
Speaker 3: to the consumer watching the show the future of what
Speaker 3: Uber using Aurora's technology looks like.
Speaker 1: Yeah, so a number of years ago we were fortunate
Speaker 1: to acquire Uber self driving car business, and that was
Speaker 1: the kind of the foundation on which our partnership has
Speaker 1: been built. Dara's business, as I understand, it is really
Speaker 1: about providing the network and providing that interface to customers.
Speaker 1: We're really about providing drivers, and so we'll begin with
Speaker 1: trucking where we can help other businesses including Goober Freight,
Speaker 1: operate theres and then in the long term we'll provide
Speaker 1: drivers to help provide it make it easier more equitable
Speaker 1: for people to get around.
Speaker 4: Chris.
Speaker 3: You've been a leader in the self driving space for
Speaker 3: a long time, and I feel like, you know, I've
Speaker 3: been talking for a long time about we're close, We're close,
Speaker 3: We're close.
Speaker 4: Where are we to your mind right now? In real world.
Speaker 3: Deployment vehicles that do not have a driver in the
Speaker 3: front seat.
Speaker 1: I think it's an incredibly exciting time. The zeitgeist is
Speaker 1: kind of out of phase with reality.
Speaker 9: So about five years.
Speaker 1: Ago it was, Oh, this technology is here, Everyone's going
Speaker 1: to have it tomorrow, and that was clearly not true.
Speaker 1: Whereas today, you know, there's increasing doubt about whether this
Speaker 1: is going to happen, but in practice it is happening,
Speaker 1: whether it's on the streets of San Francisco, or Ila
Speaker 1: or Phoenix, or with us hauling loads today for customers
Speaker 1: delivering goods.
Speaker 3: The future of Aurora is a standalone business. I know
Speaker 3: you've raised the money. The capital is significance, but do
Speaker 3: you still have full confidence that the best way to
Speaker 3: go is a business model where you just make the
Speaker 3: tech and you provide it rather than say, sell yourself
Speaker 3: to a fleet operator or you know there are others
Speaker 3: that have taken that route.
Speaker 1: Yeah, I've never been more confident about the prospects of
Speaker 1: our business or the path we've taken.
Speaker 12: To get here.
Speaker 1: You know, over the last six seven years, we've really
Speaker 1: made a number of strategic bets, whether it's on our light,
Speaker 1: our technology, on our simulation techno, in our partnership model,
Speaker 1: and that's all kind of playing out as we see
Speaker 1: the competitive landscape kind of winner around us.
Speaker 3: For or a CEO Chris Soon, it's good to catch up.
Speaker 3: It's been a while since I've been in that self
Speaker 3: driving semi on the roads of Texas. Now coming up
Speaker 3: here on Bloombay Technology, we sit down for an exclusive
Speaker 3: conversation with Flexport founder Ryan Peterson, who's just joined Founders
Speaker 3: Fund as a partner.
Speaker 4: This is Bloomberg time for VC Spotlight.
Speaker 3: Ryan Peterson, the founder of logistics startup Flexport, has joined
Speaker 3: the venture capital firm Founders Fund as a partner. Ryan
Speaker 3: joins me now here on set in San Francisco. I
Speaker 3: mean that's how we know you. We know you as Flexport.
Speaker 3: We saw the news that you've joined Founder's Fund.
Speaker 13: Why you know, well, Founders one's been probably my most
Speaker 13: like consistent backer of flex War. I think they led
Speaker 13: our series A arb are participated in the C and
Speaker 13: the D and then led the E round. So like
Speaker 13: I mean, basically, they've been with me since day one
Speaker 13: and they've been incredibly supportive of the company. More importantly,
Speaker 13: I feel like flexpor has this incredible leadership team in place. Yeah,
Speaker 13: we did Clark, and also a really strong group of
Speaker 13: people under him, both people we've had for a long time,
Speaker 13: and so a lot of new folks too. I felt
Speaker 13: like the company is doing really great in a really
Speaker 13: good place. There was less for me to do, and
Speaker 13: I'm kind of like an all or nothing guy, and
Speaker 13: I don't like the nothing side of that.
Speaker 12: I'd like want to go all in.
Speaker 4: Do you completely walk away from Flexport?
Speaker 2: Oh?
Speaker 4: No, definitely not. Okay. In fact, I.
Speaker 13: Feel like I'm working more on Flexport since I joined
Speaker 13: Founders one than I was before, because it's like, I
Speaker 13: don't know something about the energy of working hard that
Speaker 13: leads to more working hard.
Speaker 4: Okay.
Speaker 3: Have you always been interested in being an investor? I
Speaker 3: find that relationship interesting. You spend a lot of your
Speaker 3: life trying to raise money as a founder. Are those
Speaker 3: transferable skills.
Speaker 4: To go the other way?
Speaker 12: I don't know yet.
Speaker 13: Yes, I've always been interested in being an investor. I
Speaker 13: think I read Benjamin Graham The Intelligent Investor when I
Speaker 13: was about sixteen years old for the first time, so
Speaker 13: always been very interested, even was interested in stocks before that.
Speaker 13: So yes, did I have aspersion to be a VC.
Speaker 5: No.
Speaker 12: In fact, even as recently as.
Speaker 13: Like a couple of months ago, I wasn't thinking about that.
Speaker 13: But I found just want to reach out to me,
Speaker 13: accorded me, and convinced me that I can still run Flexports.
Speaker 13: He'll be actively engaged in Flexport, let's say, as the
Speaker 13: chairman and do this job. And they've got I think
Speaker 13: I'm the fourth or fifth person I founder fund. It's
Speaker 13: like almost full time running their company and being an
Speaker 13: investor in taking on two jobs and working hard, and
Speaker 13: think being in the arena running a company or being
Speaker 13: really active in the company like I'm doing, can help
Speaker 13: you be a better investor.
Speaker 3: So you said, I think that you want to be
Speaker 3: a generalist, that there must be some criteria or some
Speaker 3: thematic strategy that you're looking at.
Speaker 13: I'm a generalist in life. I try to learn a
Speaker 13: little bit about everything. That's my number one value is learning,
Speaker 13: and being a VC is an awesome platform for that.
Speaker 13: Because I get to see all range of ideas and
Speaker 13: stages and business types, business models, geographies everything. For me,
Speaker 13: that's what I love is like learning, meeting people helping
Speaker 13: them as for like a specific theme.
Speaker 12: No, it's much more about the people.
Speaker 13: Like I want to find people who are really in
Speaker 13: it for the right reasons, like very passionate about what
Speaker 13: they're building, maybe have a chip on their shoulder, feel
Speaker 13: like they've been wronged in some way at some point
Speaker 13: in their life, and want to prove to the world
Speaker 13: that they're they're the best, not just people who are,
Speaker 13: you know, trying to make a quick book or get
Speaker 13: higher status by starting a company or something like that.
Speaker 4: But open minded to size stage secta.
Speaker 13: Yeah, So Founders Fund has like we like to go
Speaker 13: in the earliest stage. In fact, we've started some great
Speaker 13: companies and ORL was incubated inside of Founder's Fund where
Speaker 13: we like to be early because of course you get
Speaker 13: better returns if you're early. But we have a very
Speaker 13: large growth fund, three billion dollar growth fund to do
Speaker 13: later stage stuff too, so we got to be looking
Speaker 13: across all stages.
Speaker 3: Alongside being the founder of Flexible, I've been reading about you.
Speaker 3: You've been an angel investor, and you've been associated with
Speaker 3: many startups one.
Speaker 4: Hundred or so. Yeah, what have you learned from that?
Speaker 3: Are there sort of specific red flags when you're speaking
Speaker 3: to a founder or things that really attract you about
Speaker 3: backing someone.
Speaker 13: Yeah, I mean I get to meet a lot of
Speaker 13: amazing founders and have an amazing network.
Speaker 12: Now I've met, you know, probably a.
Speaker 13: Huge percentage of the of the great startup founders, and
Speaker 13: at least in the San Francisco area over the last decade.
Speaker 2: I think I have to.
Speaker 12: Unlearn as much as I learned.
Speaker 13: Angel investing, you're sort of like, well, just take a bet,
Speaker 13: do one hundred investments.
Speaker 4: It's a conviction. It got cool.
Speaker 13: Yeah, And there's also you're writing other people's signal. There's
Speaker 13: some other VC who's leading this round. You're not really
Speaker 13: pricing yet, You're not making the decision is.
Speaker 12: This a go or no go?
Speaker 13: You're sort of like, these smart people are investing, I'll
Speaker 13: just throw in a check and go for it. B
Speaker 13: NFC is very different. You have to have conviction. You
Speaker 13: have to convince the founder you're the best partner. You're
Speaker 13: not just like sliding a check into a out a
Speaker 13: round like you are as an angel, so I think
Speaker 13: I have to unlearn as much as I learned.
Speaker 3: You fresh into this new journey with founders that what's
Speaker 3: your kind of working relationship been like with Peter Teel
Speaker 3: and has it changed a tool from the time that
Speaker 3: you've led Flexpoor You talked about founders leading many of
Speaker 3: the rounds in the company.
Speaker 13: Well, I think you know, Peter is an icon and
Speaker 13: he founded PayPal, and we PayPal Mafia.
Speaker 12: Famously went on to start tons of companies.
Speaker 13: Well, Peter was the CEO of that company and the founder,
Speaker 13: so he's got probably the best network of anybody in
Speaker 13: the technology industry, best track record of investing founders fund
Speaker 13: like I mean, you can talk to the LPs the
Speaker 13: best results in the last certainly the last cycle, and frankly,
Speaker 13: I think comes up with the best original ideas. I
Speaker 13: just love, like every six months or so he drops
Speaker 13: a new video that you can find on YouTube, and
Speaker 13: just like, I'm not saying all the ideas are right,
Speaker 13: but they're all interesting and it's pretty amazing to get
Speaker 13: to work with him. He also wrote the best book
Speaker 13: on startups the last twenty years, so I think everybody
Speaker 13: should read if you're building a company. Zero to one
Speaker 13: coming up on the tenth anniversary of that, and that's
Speaker 13: an incredible book that everybody should read. So I think
Speaker 13: there's a lots of leverage there and write off his
Speaker 13: coattails and learn from him. I wouldn't say our relationship
Speaker 13: has changed, and hopefully I get to be a lot
Speaker 13: more intimate and spend time learning about, you know, like
Speaker 13: deep in the weeds, what happens behind the scenes.
Speaker 12: That I'm excited for that.
Speaker 3: I know that you've outlined some experience in being an
Speaker 3: angel investor a bit literally in the last two or
Speaker 3: three weeks. How has your day to day been. Have
Speaker 3: you had a lot of inbound from founders or have
Speaker 3: you been out there in the real world looking for
Speaker 3: things both?
Speaker 13: Yeah, tons of inbound. Thank you, everybody keep reaching out.
Speaker 13: My dms are open on Twitter, so lots of great inbound,
Speaker 13: lots of referrals from friends and network and other CEOs
Speaker 13: telling me about companies. I've probably already said no more
Speaker 13: times in the last three weeks than in my whole
Speaker 13: career combined. And it's kind of the nature of VC
Speaker 13: is you have to say no to ninety nine point
Speaker 13: nine percent of the stuff you see. But so I
Speaker 13: have to figure out how to do that in a
Speaker 13: way that people still like me and want to talk
Speaker 13: to me and hang out with me and send me
Speaker 13: more stuff. But yeah, and interestingly enough, I'm finding myself
Speaker 13: going back and working harder at Flexport. Now there's something
Speaker 13: about it again, like working hard leads to more working
Speaker 13: hard and so getting more involved.
Speaker 12: In the sales process. Flexport needs to keep growing and
Speaker 12: being successful.
Speaker 3: A story of the year we're talking to everyone about
Speaker 3: is X. You're active on X the platform?
Speaker 2: For me?
Speaker 3: Notice Twitter? Any idea and everything app? What is your
Speaker 3: take on and everything app?
Speaker 12: You're confusing if you're calling it X, So like, wait,
Speaker 12: what Twitter?
Speaker 13: I don't know enough what the vision is. I think
Speaker 13: Elon has had a pretty consistent track record. I would
Speaker 13: I definitely wouldn't bet against him, and I think twitters
Speaker 13: are the most important technology platform out there in terms
Speaker 13: of social media and the ability for everybody to communicate.
Speaker 13: We take it for granted, but it's so awesome that
Speaker 13: you can like just message with anybody on planet Earth,
Speaker 13: anyone who's on there, which is a lot of the
Speaker 13: intellectual thought leaders on the planet.
Speaker 4: Ryan Peterson all found is fun.
Speaker 3: Now we've known you and building by technology for so
Speaker 3: long as part of Flexport. Thank you for coming in
Speaker 3: and talking about this next journey with us.
Speaker 4: Come back when you make some investment.
Speaker 12: Oh yeah, my applies are gonna be great.
Speaker 3: Ambient superconductors are sparking up an obsessive following. It's the
Speaker 3: technology behind transporting electricity with no resistance and at lower temperatures,
Speaker 3: and it has the potential to transform life as we
Speaker 3: know it.
Speaker 4: Experts in South Korea claim.
Speaker 3: To have synthesized the world's first superconductor, known as LK
Speaker 3: ninety nine, and since then shares for superconductor related stocks
Speaker 3: have seen a massive jump. Now ninety nine is not
Speaker 3: peer reviewed, but what's happened is that labs around the
Speaker 3: world are now trying to replicate the results. Once more
Speaker 3: research becomes available, superconductors could reshape the energy industry, reducing waste,
Speaker 3: lowering bills, and helping to coe glibal warming. That does
Speaker 3: it for this edition of Bloomberg Technology, check out the
Speaker 3: podcast for the recap.
Speaker 4: This is Bloomberg