Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live
Speaker 1: from the heart of Silicon Valley with Ed Lavow in
Speaker 1: Fan Francisco.
Speaker 2: This is Bloomberg Tech coming up. SpaceX's first earnings reveal
Speaker 2: massive AI spending, an ambitious Starlink expansion, and Elon Musk's
Speaker 2: latest bowl prediction one hundred billion dollars and your revenue
Speaker 2: run rate by year end.
Speaker 3: Plus.
Speaker 2: We speak with Uber CEO Dara Kosra Shahi and joins
Speaker 2: us to discuss the company's earnings and it's robotaxi ambitions
Speaker 2: and more. Robotaxi talkers were joined by the CEO of
Speaker 2: Zooks later this hour on a big commercial milestone for
Speaker 2: the company, SpaceX's first ever quarterly earning. So the stock
Speaker 2: is down. This is what it looks like, on track
Speaker 2: for its biggest drop since June twenty two. Okay, it
Speaker 2: only started trading June twelve, but it is much further
Speaker 2: below its IPO price of one hundred and thirty five
Speaker 2: dollars a share. There's a lot of stories and a
Speaker 2: lot of numbers that we need to go through, but
Speaker 2: today's big number one trillion dollars. That's how much Elon
Speaker 2: Musk expects SpaceX revenue to hit in twenty thirty. Everything
Speaker 2: you need to know Bloomberg's Lauren Grush covering all things
Speaker 2: space joins us. Now, so let's go over the quarter
Speaker 2: that was the numbers that we need to hear about,
Speaker 2: what the stories were in SpaceX's first ever earnings and
Speaker 2: earnings call.
Speaker 4: Right, So, you know, I think it paints a pretty
Speaker 4: similar picture to the one that we saw merge ahead
Speaker 4: of the IPO. Obviously, revenue is up, but you know,
Speaker 4: it's still a cash burning business. Of the three segments,
Speaker 4: the one that's really the one bringing in the numbers
Speaker 4: at the moment is the connectivity segment, that startling segment,
Speaker 4: the space segment, what they've built their business on rocket launches,
Speaker 4: you know, that's that is making some gains in terms
Speaker 4: of revenue, but still holding relatively steady. And then of
Speaker 4: course the newly acquired AI segment that is really the
Speaker 4: big source of the cash burn for the company. And
Speaker 4: as SPACEXCFO Brett Johnson mentioned, we can expect to see
Speaker 4: capital expenditure on par with what we saw this quarter
Speaker 4: for the next two quarters.
Speaker 2: There was a lot of discussion of Starship as well.
Speaker 2: Starship of course, is central to the future ambitions the
Speaker 2: company has. But what do we really learn about it?
Speaker 2: What is it that Elon Musk and the other execs.
Speaker 4: Said, Yeah, I feel like the more surprising tidbits really
Speaker 4: did come during that earnings call, and a lot of
Speaker 4: very big, bold claims were made about some of the.
Speaker 5: Things we might see in the future.
Speaker 4: For instance, Starship, as you mentioned, you know, he said
Speaker 4: that Starship would be launching once a day by this
Speaker 4: time next year. Also, the heat shield for Starship is
Speaker 4: essentially solved, which is interesting given that there is some
Speaker 4: skepticism whether the heat shield design actually would hold up
Speaker 4: and make it a fully reusable and rapidly reusable rock.
Speaker 4: It just a reminder, Starship has launched twice this year
Speaker 4: on test flights, so to reach a launch a day
Speaker 4: by next year, you know, that's an exponential increase. So,
Speaker 4: you know, a lot of big claims. We'll see how
Speaker 4: they hold up. But you know, that's what Elon is
Speaker 4: known for. I think anyone investing in his company knows
Speaker 4: that he likes to push the limit and set really
Speaker 4: big expectations in order to challenge people to meet them.
Speaker 2: What were the other bits that you kind of would
Speaker 2: pick out having had a night to sleep on it,
Speaker 2: you put the business of space news that are out
Speaker 2: this morning, you know, with a bit of time to
Speaker 2: think what do we need to know?
Speaker 4: Sure, you know, there was another moment as well that
Speaker 4: Starlink would be the majority of the world's Internet in
Speaker 4: the next few years. Again, I'm not sure about that one.
Speaker 4: I did take notice of Gwynn shot Well, the president
Speaker 4: of SpaceX, talking about Starlink Mobile and how they actually
Speaker 4: think that they're going to be able to acquire a
Speaker 4: lot of the customers that you know, the major telecom
Speaker 4: servicers like Verizon AT and T and T Mobile have.
Speaker 4: You know, that definite definitely spoke to their ambitions for
Speaker 4: expanding that service. I think there's a lot of speculation
Speaker 4: of you know, whether they'll have to bring in ground
Speaker 4: based components, terrestrial components, something that she did mention. I
Speaker 4: don't think it's out of the realm of possibility, but
Speaker 4: I think it's going to take a lot of investment
Speaker 4: on their end in order to make that happen. And
Speaker 4: of course, you know, as we've seen, they're not adverse
Speaker 4: to putting.
Speaker 5: In a lot of capex.
Speaker 2: We're going to go deeper on SpaceX Mobile later in
Speaker 2: the hour. Thank you very much, Bloombergs, Laura and Grush
Speaker 2: stay with SpaceX, Edison you. Deutsche Bank head of Global
Speaker 2: Space and Aerial Mobility joins us now. He maintains a
Speaker 2: by rating on the stock, but cut the price target
Speaker 2: from two hundred and fifty five dollars to two hundred
Speaker 2: and thirty five dollars. And I want to get to
Speaker 2: you with you to the bit that we probably haven't covered,
Speaker 2: which is, in the short term, it is the business
Speaker 2: of cloud services, leasing, renting compute capacity to third parties
Speaker 2: Google Anthropy that seems to have the most momentum right now.
Speaker 6: Yeah, yeah, And you probably noticed they announced another deal
Speaker 6: right another customer undisclosed in the beginning of three Q.
Speaker 6: So the cloud business, by our estimates, right it probably
Speaker 6: can end December probably running at a forty plus billion
Speaker 6: dollar runweight, which is obviously much higher than now in
Speaker 6: generating the bulk of revenue. So we actually feel very
Speaker 6: good about that trajectory.
Speaker 3: Going into to your.
Speaker 2: End, let's get to what you just mentioned, which is
Speaker 2: there was a disclosure of the cloud business in the
Speaker 2: current period. Let's listen to CFO Brett Johnson.
Speaker 7: In the first few weeks of the third quarter. We've
Speaker 7: already contracted an additional six point seven billion dollars of
Speaker 7: cloud services revenue over a six month period that begins
Speaker 7: ramping starting in October of this year. We believe this
Speaker 7: puts US on a trajectory, including contribution from Cursor, to
Speaker 7: reach one hundred billion of ARR or annualized revenue run
Speaker 7: rate by the end of this year.
Speaker 1: So this is.
Speaker 2: Space X, right, there are three business segments, space AI connectivity.
Speaker 2: But you know Brett was pushed, wasn't he on what
Speaker 2: the biggest contributors to thee hundred billion AR was, and he,
Speaker 2: I think at the end, said, yeah, this is US
Speaker 2: leasing compute capacity.
Speaker 3: Yeah.
Speaker 6: So I mean we can do some some rough math
Speaker 6: around it, right, just as I just mentioned, right, we
Speaker 6: can probably easily, pretty easily get to the forty. You
Speaker 6: have other parts of AI, right, you have grock X,
Speaker 6: you have the advertising businesses as well, and I think
Speaker 6: you put these pieces together you get probably I don't
Speaker 6: know point five you add on Cursor, which depending on
Speaker 6: you know, I think maybe Bloomberg has even reported on this, right,
Speaker 6: is running out at a very very fast growth rate.
Speaker 6: So you put that all together, we think you could
Speaker 6: probably get to something like sixty billion run rate not
Speaker 6: too far from December of nine December. So if you're
Speaker 6: already at sixty, you need the rest of the businesses
Speaker 6: to do to do by definition, right, something like thirty
Speaker 6: five to forty.
Speaker 3: And we think that's that's achievable.
Speaker 6: And so we believe that in that one hundred billion
Speaker 6: r And you know, obviously time will tell, but but
Speaker 6: we feel pretty Goodson.
Speaker 2: A lot of the research that I've been reading from
Speaker 2: you of late, it has been on the orbital data
Speaker 2: center side, And a big piece of technology news was
Speaker 2: that SpaceX has decided to go exclusively with Nvidia and
Speaker 2: Vira rubin architecture. That did seem important. You know, what
Speaker 2: did you make of that? And the statement that next
Speaker 2: year they will start launching that orbital data design.
Speaker 6: Yeah, so I think there's there's there's kind of two
Speaker 6: angles here, right. There's the more new term you just mentioned,
Speaker 6: which is we need to deploy some prototypes and de
Speaker 6: point the prototypes. I would say it's not it's just
Speaker 6: the beginning. We need to get them up there, we
Speaker 6: need to prove it works. The real question is how
Speaker 6: do we scale this up, and to do that, we
Speaker 6: really need to increase the volume, reduce the cost of
Speaker 6: solar of also of the radiator. So I actually don't
Speaker 6: I don't worry too much about next year. Can we
Speaker 6: deploy some prototypes. I think the much more difficult part
Speaker 6: ultimately is the cost and scale of doing this at
Speaker 6: gigawat level, and that's what really will be the truth test,
Speaker 6: rather than kind of just getting like a.
Speaker 3: Couple up there.
Speaker 2: Elon Musk said that he's pulled forward his expectations SpaceX
Speaker 2: hits a trillion dollars of revenue to twenty thirty from
Speaker 2: twenty thirty one, and that there is a non zero
Speaker 2: chance that that happens twenty twenty nine.
Speaker 3: Are you able to model for that?
Speaker 6: I would frame it like this, so we have a
Speaker 6: forecast out there right that's you can see on Bloomberg
Speaker 6: is much lower than that, and I think the way
Speaker 6: to frame it in the context of stock is to
Speaker 6: get a much higher stock value. You do not need
Speaker 6: to hit one trillion by twenty thirty. If by some
Speaker 6: chance you do, the stock is worth significantly more than
Speaker 6: what it is right now, and certainly even versus our
Speaker 6: price target, we're probably modeling call it more like a
Speaker 6: third of that, and we think that more than justifies
Speaker 6: where the stock is right now.
Speaker 2: I mean, at the end of the day, Ela must
Speaker 2: said it trillion dollars in twenty thirty. I'm looking at
Speaker 2: consensus on the Bloomberg fago three hundred and fifty one
Speaker 2: billion dollars for the full year twenty thirty.
Speaker 3: Should we talk about Starship to end?
Speaker 2: You know, all of the future is predicated on Starship
Speaker 2: working and it's rapid reusability. How did you digest the updates?
Speaker 2: I guess from the call, I.
Speaker 6: Think it's basically on track with our expectations, which you know,
Speaker 6: we're expecting that probably flies call it fifteen twenty times
Speaker 6: next year. And if you kind of triangulate, you know
Speaker 6: they're talking about maybe deploying one thousand, B three satellites.
Speaker 6: You look at fifty sixty satellites per launch, right, you
Speaker 6: probably get into that realm. So we think there's certainly
Speaker 6: you know, you need to catch the second stage, you
Speaker 6: need to address some of the heat shield concerns. But
Speaker 6: in terms of the operational cadence of Starship, it is
Speaker 6: tracking roughly what we're modeling for for next year, and
Speaker 6: you know we will see it on flight fourteen, which
Speaker 6: is really soon.
Speaker 2: You know how that goes, Edison, you have thoish Bank.
Speaker 2: Great to have you back on the show. Really appreciate it.
Speaker 2: That's Space Acts. There are so many other technology earnings.
Speaker 3: Let's go through it.
Speaker 2: AMD third quarter sales outlook thirty point three billion dollars
Speaker 2: plus or minus three hundred million, disappointing, the stockdown seven percent,
Speaker 2: promont s guidance, profits surging, but questions and concerns about
Speaker 2: the Warner Brothers Discovery deal. We're going to get to
Speaker 2: that halfway through the program. Disney higher as streaming and
Speaker 2: parks both drove profit in the third quarter gone.
Speaker 3: And then there's Uber.
Speaker 2: Right now, the stock seems to be trading on the
Speaker 2: outlook for gross bookings, but there was a really big
Speaker 2: discussion about Uber's plans for its robotaxi business going forward,
Speaker 2: and that is where we will focus coming up. Uber
Speaker 2: CEO Dara Koshrasahi joins us to discuss the company's earnings,
Speaker 2: but also it's robotaxi ambitions that's next.
Speaker 3: This is Bloomberg Tech.
Speaker 2: Take another look at shares of Uber down about six percent.
Speaker 2: I think that's on track for its biggest drop since November.
Speaker 2: The company said gross bookings for the current quarter are
Speaker 2: expected to be between fifty eight point twenty five billion
Speaker 2: dollars and sixty point twenty five billion dollars, but that
Speaker 2: figure includes rides and delivery bookings as well as driver
Speaker 2: and merchant earning. So Uba said it faces some international headwinds,
Speaker 2: particularly in Brazil and the next focus. Robotaxi CEO Dara
Speaker 2: Kostra Shaki's back with us here on Bloomberg Tech. You know,
Speaker 2: the growth bookings outlooked like there's a number of stories
Speaker 2: within it. I'd also not like at the same time,
Speaker 2: rider activity seems to be increasing, you know, help us
Speaker 2: understand those two data points.
Speaker 8: Yeah, the growth bookings results that we had up twenty
Speaker 8: two percent in the quarter were actually very healthy and
Speaker 8: represented quarter on quarter acceleration. Mobility business was stable at
Speaker 8: twenty percent. The delivery business actually accelerated quarter on quarter
Speaker 8: as well. So the business continues to grow at pretty
Speaker 8: extraordinary rates at the scale we're doing over three hundred
Speaker 8: million trips per week. It drove really strong profitability as well.
Speaker 8: The pressure that we talked about was real in Brazil,
Speaker 8: which caused a trip slowdown for the quarter, and that
Speaker 8: was actually about competition in the food delivery space in Brazil. Actually,
Speaker 8: we have a lot of mobility ridership that are two wheelers.
Speaker 8: We actually don't engage in the food delivery space, but
Speaker 8: there's a big war going on in food delivery, and
Speaker 8: that took away some of our two wheeler drivers from
Speaker 8: mobility to delivery because they're getting paid a lot to
Speaker 8: engage in that war. It really has no effect on
Speaker 8: us whatsoever. So the guidance that we gave for forward
Speaker 8: gross bookings growth is very consistent with the guidance that
Speaker 8: we gave last quarter, and hopefully we will meet and
Speaker 8: hopefully beat those kinds of expectations.
Speaker 2: DAR, is there anything to discuss on both like the
Speaker 2: health and behavior of the consumer that you're seeing going
Speaker 2: into the second half of this year.
Speaker 8: All signs point to a healthy consumer. We look at
Speaker 8: both our mobility and livery business in terms of the
Speaker 8: growth of those businesses, they continue to be healthy. We
Speaker 8: look at like other indications are consumers trading down and
Speaker 8: eating at more forfordable restaurants, or our eaters leaving less
Speaker 8: tips eaters or riders leaving less tips we don't see
Speaker 8: any signs whatsoever of a consumer slowdown, so the consumer
Speaker 8: remains strong. And then on the labor front, actually, our
Speaker 8: driver earnings, we've got over ten million now earners around
Speaker 8: the world that continues to be very healthy. And in
Speaker 8: the US, for example, driver earnings are up eight percent
Speaker 8: on a year on your basis. So you know, people
Speaker 8: talk about the K shaped economy, but we think both
Speaker 8: sides of the K continue to be very healthy and
Speaker 8: right now all signs point to the same going forward.
Speaker 2: Let's take the driver out of it for a moment
Speaker 2: and talk about robotaxis. You kind of explained to plan
Speaker 2: for the rest of the year, which is to get
Speaker 2: into more cities through different partnerships in different lanes, different methods.
Speaker 3: Let's start with that.
Speaker 2: You know, are you wanting to see the team accelerate
Speaker 2: a bit on that deployment, Dara.
Speaker 8: Yeah, definitely. So we're in seven cities already with a
Speaker 8: number of partners and just a review. We want to
Speaker 8: work with all of the ecosystem partners, and just like
Speaker 8: we want every safe driver human driver on our platform,
Speaker 8: we want every safe robot driver on our platform, and
Speaker 8: we're working with the entire ecosystem to accomplish that. We're
Speaker 8: in seven markets now, by the end of the year
Speaker 8: we'll be in fifteen markets, and we're on track to
Speaker 8: be on fifteen markets. And we see, you know, a
Speaker 8: lot of advancements as it relates to our partners. I
Speaker 8: know you're going to have aisha from Zookson. They got
Speaker 8: a great approval from the NHTSA to run there like
Speaker 8: really really innovative and cool robot vehicles as well. We
Speaker 8: got approval for a wave to start testing operations in
Speaker 8: London as well. In Nvidia, who is a huge partner
Speaker 8: of ours, announced the release of their Alphameo two model,
Speaker 8: which is a physical AI model as well. So the
Speaker 8: ecosystem around AV continues to move forward, is actually accelerating,
Speaker 8: and we are helping that ecosystem accelerate through our partnership,
Speaker 8: through investment, through data collect for a number of these partners,
Speaker 8: and then ultimately commercialization of these vehicles on the road
Speaker 8: in the cities in which we live.
Speaker 2: Dara on zookes and I'll ask I said this obviously,
Speaker 2: but now they can charge a fair which is a
Speaker 2: first for a true robotaxi no driver controls. When does
Speaker 2: that manifest on the Uber app. When will Zookes be
Speaker 2: available on an Uber app in which of a city
Speaker 2: with a fair associated with it?
Speaker 8: We think later this year actually in Las Vegas, and
Speaker 8: then we'll expand from there. And Zeus's strategy is going
Speaker 8: to be to make vehicles available on Uber as well
Speaker 8: as on the Zoops app as well. So we're very,
Speaker 8: very excited to work with that.
Speaker 2: A lot of people want to understand what's happening in
Speaker 2: the relationship with Weimo. There was a change of plans
Speaker 2: in Phoenix. But how confident are you also about sort
Speaker 2: of renewing non exclusive contracts with Weimo. I think that
Speaker 2: your agreements with them, for example in in Austin Atlanta
Speaker 2: run through twenty twenty eight, and then you've got to
Speaker 2: work out how to go from there.
Speaker 8: Yes, so the deployment in Phoenix was a really small deployment.
Speaker 8: It was less than ten cars, so that's not material
Speaker 8: in any way, shape or form. We're going to continue
Speaker 8: to work with Weimo. It's been a strong partnership going
Speaker 8: forward into twenty eight as well. And you know, our
Speaker 8: philosophy has always been we don't want to be dependent
Speaker 8: on one partner one way or the other. Of course,
Speaker 8: we'd love to continue the relationship with Weimo, but then
Speaker 8: you've got partners like zoop A, wave a, we Ride,
Speaker 8: av Ride, and then of course Nvidia as well, so
Speaker 8: that we're not dependent on any single player to keep
Speaker 8: driving and growing this ecosystem.
Speaker 2: By the way, Dara, we're live on Bloomberg Television and
Speaker 2: on Bloomberg Radio, and this is Bloomberg Tech speaking to
Speaker 2: Uber's CEO, and you've just said that you don't want
Speaker 2: to rely on any one partner. Let me put it
Speaker 2: a different way. If we accept that weimo's kind of
Speaker 2: the commercial robotaxi leader in the US, at least in
Speaker 2: terms of deployments, charging a fair of the rest of
Speaker 2: the field. Which do you think is most competitive or
Speaker 2: going to be most competitive against Weemo.
Speaker 8: I think there are gonna be multiple winners. I mean,
Speaker 8: this market is so early in its development, and I
Speaker 8: compare it to like the foundation model Space. You remember,
Speaker 8: like three years ago or two years ago, peop were
Speaker 8: like open Ai is gonna run away with it. They're
Speaker 8: gonna be the only game of down. Then it turned
Speaker 8: into anthropic and Claude is you know, the best model
Speaker 8: that's going to conquer the hall. Now you see Xai
Speaker 8: and SPACEXAAI coming in with Grock and the combination with
Speaker 8: Cursor being a really great combination as well. You've got
Speaker 8: Google coming in with Gemini. They were late in the game,
Speaker 8: but they're definitely in the game. In Vidia releasing open
Speaker 8: source and really supporting that ecosystem. So there is going
Speaker 8: to be no single winner here. Weamo's in the lead
Speaker 8: now just like open Ai was in the lead, but
Speaker 8: there are going to be many, many players as part
Speaker 8: of this ecosystem, and we will help the ecosystem overall
Speaker 8: commercialize because ultimately we've got the demand and we can
Speaker 8: bring more rides to those cars and monetize those vehicles
Speaker 8: in a way that no one else can.
Speaker 3: So DAR really quick to drive early adoption.
Speaker 2: Is it important that the robotaxi firms price lower than
Speaker 2: other ride share.
Speaker 8: No, Actually, what we're seeing is pricing is super strong
Speaker 8: and demand is super strong as well. So when you
Speaker 8: get the product in market, it sells. It's taken a
Speaker 8: long time, right, Like twenty percent of search now is
Speaker 8: driven by AI av is less than point five percent
Speaker 8: of overall trips at this point, So the adoption is
Speaker 8: going to take time. But the product is a terrific
Speaker 8: product and we look forward to making it available on
Speaker 8: the Uber app really all over the world.
Speaker 2: Ubercio, Dara Kostra, thank you very much. And again later
Speaker 2: in the hour, we're gonna get stick with Robutaxes and
Speaker 2: speak with Zoop CEO Aisha Evans to stick around for
Speaker 2: that coming up right now. AI safety is back in
Speaker 2: the spotlight after open AI and anthropics models took quote
Speaker 2: unsanctioned actions by the details. Next, this is Blomberg Tech
Speaker 2: Ben Griffins Sit to Doen. It's cashing in on Wall
Speaker 2: Street's biggest AI hedge fund blow up Citadel's flagship Wellington Fund.
Speaker 3: Excuse me search five point nine percent in July. You
Speaker 3: know what I'm going to turn So you hire. If
Speaker 3: it's Talking Tech, because I've lost my voice, you hire.
Speaker 3: I'm hoping you there save me for a.
Speaker 9: Second, I will add, well, let's get to Talking tech
Speaker 9: a ride away first step. Monolith Management, one of Moonshot's
Speaker 9: AI's early backers, is looking to raise five hundred million
Speaker 9: dollars for a new fund. According to sources. Last year,
Speaker 9: Monolith raised two hundred and eighty nine million dollars for
Speaker 9: a fund and has since emerged as one of China's
Speaker 9: most prolific venture backers, and Open AI and Anthropics AI
Speaker 9: models carried out unsanctioned actions during a safety test, including
Speaker 9: a hacking a website and trying to inject powerful code
Speaker 9: into software. That's according to the UK government's AI Security Institute,
Speaker 9: which says it's the first time it sees quotes risks
Speaker 9: around autonomy and deception manifest this clearly in the real world. Ed,
Speaker 9: I hope you got some water out there.
Speaker 3: Yeah, let's try that again.
Speaker 2: Another stock that we're watching today, by the way, Shopify
Speaker 2: absolutely surging actually at one point in the session, up
Speaker 2: the most since twenty fifteen. Continues to hit top line
Speaker 2: growth above thirty percent six consecutive quarters. And that's the
Speaker 2: direction of travel for this name.
Speaker 3: It's interesting.
Speaker 2: It's one that we cover less in the e commerce space,
Speaker 2: but it continues to have a lot of momentum and
Speaker 2: is growing super fast. It is an astonishingly busy earnings
Speaker 2: period and with my voice back in full force, this
Speaker 2: is what's to come more earning. So we're going to
Speaker 2: break down the prints from AMD, Paramount and Disney, and
Speaker 2: this is how those stocks are trading right now in
Speaker 2: this Wednesday session. Okay, everybody, take a breath. It's halftime
Speaker 2: here in San Francisco, the beautiful city of don't go far.
Speaker 2: We'll be right back. This is Bloomberg Tech. Welcome back
Speaker 2: to Bloomberg Tech. This is what tech pology markets look
Speaker 2: like this morning. SpaceX is the big earning story. Then
Speaker 2: as that one hundred modesty lower, basically flat. You know
Speaker 2: with SpaceX there's been limited ripple effect, the downward pressure
Speaker 2: on the carriers. We'll talk about that later in the program.
Speaker 2: A little bit of upsided Nvidia after the Elon Musk
Speaker 2: name check.
Speaker 3: Then there's the earning stories that continue.
Speaker 2: AMD reported better than expected second quarter earnings yesterday, but
Speaker 2: that wasn't enough for investors who expected more given rising
Speaker 2: demand in the sector, sending the stock lower and a
Speaker 2: big focus on the outlook of sales and third quarter
Speaker 2: thirteen point three billion dollars plus or minus three hundred million.
Speaker 2: Why aren't they doing better? Blue Momsey in King joins
Speaker 2: us to try and explain. I mean a lot of
Speaker 2: the call focused on what do you mean, Lisa Sue,
Speaker 2: CEO of AMD, that the business for data central more
Speaker 2: than double it seemed like the street really wanted specific
Speaker 2: size and scope.
Speaker 10: Absolutely.
Speaker 11: I mean, if you look at the forward estimates, AMD
Speaker 11: is doing very well. Everybody thinks they're going to do
Speaker 11: very well, but everybody kind of knows that. So when
Speaker 11: she said, oh, we expect data send a business to
Speaker 11: more than double, what do you mean by more than?
Speaker 11: Do you mean sixty percent more? Then do you mean
Speaker 11: two percent more than? So that was a lot of
Speaker 11: what was going on on the plot.
Speaker 2: It's still framed in the context of like, well, what
Speaker 2: is in Vidia doing in terms of growth and is
Speaker 2: AMD closing the grap the gap? But there was also
Speaker 2: a technology story, which is that AMD has a new
Speaker 2: generation of server design helios with four point fifty its
Speaker 2: latest generation accelerator that's not shown up yet.
Speaker 11: Yeah, there's a lot of focus on this accelerator, and
Speaker 11: you know AMD has been out there and said, look,
Speaker 11: this is this is a product that's actually better than
Speaker 11: what Invidia has and has coming. So the expectations are
Speaker 11: obviously rising for that. So now it's a case of Okay,
Speaker 11: we believe you, but when's it going to be there?
Speaker 11: When is it going to really kick in? And the
Speaker 11: same with the server design, could because again in Vidio said, look,
Speaker 11: we can do everything for you. We can put it
Speaker 11: all in one server.
Speaker 3: It's easy.
Speaker 11: You just get it off the loading dot, plug it in,
Speaker 11: and away you go. This is AMD's attempt to head
Speaker 11: that off at the pass, and we want to see that.
Speaker 3: What's the CPU story.
Speaker 11: CPU story. There are so much demand for CPUs right now.
Speaker 11: It's what is old is new again right the data
Speaker 11: centers are now full of CPUs. We saw huge run
Speaker 11: up in Intel's CPU business. Obviously the expectation was that
Speaker 11: that would happen for AMD as well. It did the
Speaker 11: taking share, but again people want more. People put a
Speaker 11: lot of money to work in this stuff.
Speaker 2: Bloubergsy and King on all Things chips, thank you very much.
Speaker 2: Paramounts posted a surprise surge in second quarter profits, proving
Speaker 2: its cost cutting Skydance merger continues to pay off. Meanwhile,
Speaker 2: in the company's earning school, CEO David Ellison said they're
Speaker 2: moving forward with the Warner Brothers deal.
Speaker 12: We remain highly confident that this transaction will close, and
Speaker 12: we're preparing for basically successful combination once it does. If
Speaker 12: you take a step back and just look at exactly
Speaker 12: where we are today, We received approvals from basically, you know,
Speaker 12: sixty five regulators representing sixty five countries around the world,
Speaker 12: you know, including the United States, federal government, Canada, European Union, China,
Speaker 12: and many more.
Speaker 2: Okay shares are up two percent or so. Nothing that
Speaker 2: much to write home about in terms of size and scope.
Speaker 2: What's the story here, bluembogs. Hannah Miller is with us,
Speaker 2: you know, Surprise profit. There seems to be a lot
Speaker 2: of focus on what's going to happen with Warner Brothers.
Speaker 13: Yeah, there is a lot of focus here. And you know,
Speaker 13: David Ellison mentioned on the earnings call yesterday that he
Speaker 13: is interested in pursuing an out of court settlement potentially,
Speaker 13: so even though this trial is now scheduled for March,
Speaker 13: you know, things could still change.
Speaker 2: How is Paramount's business doing, you know, like I'm trying
Speaker 2: to think, like what's the top hits that I associate
Speaker 2: with them. We've been through the sky Dance thing. It
Speaker 2: seems to be like that merger and integration's gone well.
Speaker 13: Yeah, we saw strength for streaming platforms. You know, they
Speaker 13: had a big hit with Dutton Ranch, fantastic premiere for them. Also,
Speaker 13: the UFC fight at the White House did very well
Speaker 13: for them in terms of viewership, so they did have
Speaker 13: some wins in streaming.
Speaker 2: I loved all of them, Dunn, Ranch, Marshall's Yellowstone spinoffs. Right,
Speaker 2: and so let's see what happens with Warner Brothers, Discovery,
Speaker 2: Bloomberg's Hanah Miller on the entertainment beat. Thank you very much.
Speaker 2: There's also Disney. Disney released Learning today before the opening bell,
Speaker 2: impressing investors with profit surge fueled by its streaming service,
Speaker 2: but also Theme Parks shares up two and a half percent.
Speaker 2: Philip Securities Research and analyst Helen and a One has
Speaker 2: a by rating on the stock and joins US Now.
Speaker 2: There was a lot of fighting talk from CEO Josh
Speaker 2: Damarro that Disney is doing better than its peers. Did
Speaker 2: they give the data points that evidence that.
Speaker 5: Well, we're seeing a really strong performance with US quarter.
Speaker 5: We're seeing very strong experiences despite the macrons certain days
Speaker 5: that we have. If we look at domestic park attendance,
Speaker 5: the global guest growth, and even per capital guest spending,
Speaker 5: they'll all be increasing. On a cruise side, that's all
Speaker 5: very strong. We're seeing very health see occupancy and forward
Speaker 5: bookings for their Disney Destiny and Disney Adventure. They've also
Speaker 5: tried to raise their guidance to the higher end. And
Speaker 5: for the entertainment side, they've managed to release Toy Story
Speaker 5: five this quarter and it resonated very well with the audience.
Speaker 5: It also helped push up their customer products to the
Speaker 5: highest gross in the twenties.
Speaker 2: Collers, let's listen a little bit to what Josh Morris
Speaker 2: said about the entertainment business, the streaming business, and what's
Speaker 2: in the pipeline.
Speaker 14: Our ability to outperform our prior consolidated fiscal Q three
Speaker 14: guidance and reiterate our full year outlook despite the mixed
Speaker 14: box office performance demonstrates the strength of our diversified entertainment model.
Speaker 14: Of course, I'd be remiss not to acknowledge and congratulate
Speaker 14: everyone on this past weekend's record breaking opening for Spider Man.
Speaker 2: You know, it's interesting Spider Man did break records, but
Speaker 2: he talks about the box office being mixed. How much
Speaker 2: is Disney judged by those theatrical releases and success is well.
Speaker 5: I would say Disney's greatest competitive advantage is what I
Speaker 5: call the it flywheel, So it has one of the
Speaker 5: strongest and most monetizable itp portfolios in the Google media
Speaker 5: industry and support it by incredibly loyal fan base built
Speaker 5: over the decades.
Speaker 6: So take this quota.
Speaker 5: For example, their Toy Story five has been successful, So
Speaker 5: the customer might watch the Toy Story fiving cinema, decide
Speaker 5: that he likes it, and then goes on to Disney
Speaker 5: Plus to watch in the entire franchise and maybe visit
Speaker 5: the Disneyland and crews to interact with the IPS and
Speaker 5: then purchase related merchandise. So yes, even though this time
Speaker 5: their office is a little bit mixed, so they're a
Speaker 5: little bit mixed on their style war and also the
Speaker 5: live action Juana, but they're still able to escalate that
Speaker 5: outside of theater and bring it into the IPS and
Speaker 5: the related merchandise. So very few companies can actually monetize
Speaker 5: their content across so many touch points, and that is
Speaker 5: what makes Disney's business models so unique.
Speaker 2: There was a contribution from Parks right particularly to profit Disney.
Speaker 2: You know, from a stock perspective, I think it's trading
Speaker 2: it thirteen times forward twelve month earnings. I'm still asking
Speaker 2: the question, like, is Disney a technology company focused on
Speaker 2: streaming or do we still continue to model it based
Speaker 2: on the parks and other sort of more physical businesses.
Speaker 5: I think you can't really stay there a streaming company
Speaker 5: because they're still seeing very strong on their experiences. They're
Speaker 5: also trying to invest very heavily for long term expansion pipeline.
Speaker 5: So we are seeing the Valaancing area in Walt Disney World,
Speaker 5: the Avanta experience in Disneyland, and of course the new
Speaker 5: Disney Abu Dhabi. They're also trying to add more cruise ships,
Speaker 5: find more cruise ship by twenty thirty one, and all
Speaker 5: these additions are going to drive long term revenue for Disney.
Speaker 5: So I think it would be a little bit unfair
Speaker 5: to just categorize them as a streaming company. It's more
Speaker 5: like a company that's one of its kind that has
Speaker 5: compared with strengths.
Speaker 10: In its ip.
Speaker 2: It's still early days in the Josh Demorrow era of Disney,
Speaker 2: But how do you assess his leadership at the company
Speaker 2: and what he's tried to implement.
Speaker 5: Well, I think he's the right person. He has the
Speaker 5: exact expertise to do. I think Bob Agar before he left,
Speaker 5: he already said that Josh is ready and he's more
Speaker 5: than ready to bring the company in the correct direction.
Speaker 5: I think right now Disney they've already managed to fix
Speaker 5: so many problems they used to have, so they're and
Speaker 5: previously now streaming as profitable. Cors have come down, parks
Speaker 5: are still generating strong cash flow, so I do think
Speaker 5: it's going towards the right direction.
Speaker 2: Of course, Josh Tomorrow in posts, it's about mid March.
Speaker 2: What's the next catalyst? What happens in the balance of
Speaker 2: the year with Disney that you're looking at most closely.
Speaker 5: So I think that'll be interesting for this quarter. Is
Speaker 5: they've just announced today that they're doing a collaboration with TikTok.
Speaker 5: So that's quite interesting to me because Disney has always
Speaker 5: been really detective of its ike usage because that's their
Speaker 5: core competitive advantage. So this collaboration is Disney acknowledging that
Speaker 5: customer behavior have changed, and they're trying to embrace the changes.
Speaker 5: I mean Disney plus previously they can pey mainly streaming
Speaker 5: companies like Netflix, but now because customers they spend so
Speaker 5: much time on screen time on TikTok, YouTube shorts, all
Speaker 5: those short video platforms, So they are trying to embrace
Speaker 5: the new trend as well, and I think it will
Speaker 5: also help Disney for their engagement problem. The current problem
Speaker 5: that Disney Plus have is users will click onto Disney
Speaker 5: Plus to watch a specific content that they want to watch,
Speaker 5: and then they will close it. So unlike TikTok, TikTok
Speaker 5: managed to convince their users to open the app multiple
Speaker 5: times in a day. So if they're able to guide
Speaker 5: that kind of traffic into Disney Plus, then customer who
Speaker 5: opened Disney Plus so many times per day is less
Speaker 5: likely to cancel.
Speaker 2: Hello Along, Philip Securities, Thank you very much. Indeed, let's
Speaker 2: try this again, Ken Griffin. Citadel is cashing in on
Speaker 2: Wall Street's biggest AI hedge fund blow up. Cidadel's flagship
Speaker 2: Wellington fund surge five point nine percent in July after
Speaker 2: buying most of troubled Situational Awarenesses public stock portfolio at
Speaker 2: a discount. The deal helped lift Wellington's gains for the
Speaker 2: year to twelve percent, underscoring Citadel's ability to profit from
Speaker 2: market turmoil, while many AI focus hedge funds were hit
Speaker 2: by the tech selloff.
Speaker 3: Okay coming up Zekes.
Speaker 2: Will soon start charging for its rides in Las Vegas,
Speaker 2: marking a milestone for the Robotaxi company and for the industry.
Speaker 2: We're going to speak with the CEO next. This is
Speaker 2: Bloomberg Tech. Zekes will start charging for rides in Las
Speaker 2: Vegas next week, marking a big commercial milestone for the
Speaker 2: company and a first for a steering wheel free robotaxi
Speaker 2: in the US. Souit CEO Ia Evans joins us. Congratulations, Like,
Speaker 2: this is something that I've been questioning you about for years.
Speaker 2: You're allowed to charge a fair.
Speaker 3: Now, what's the plan? First?
Speaker 15: Thanks for having me exciting starting this phase of the journey.
Speaker 15: We start in Las Vegas next week on Monday, and
Speaker 15: then we have San Francisco coming up. We have more
Speaker 15: permits to get in California later this year, Miami and Austin.
Speaker 15: We'll be entering Atlanta and LA and then we've also
Speaker 15: started testing in Dallas and Phoenix, so you can assume
Speaker 15: the robot tax is coming. So starting now the commercial
Speaker 15: journey and bringing what we think is this delightful experience
Speaker 15: to customers.
Speaker 2: So there's going to be a base fair and then
Speaker 2: the final fair gets calculated based on the distance travel
Speaker 2: on and how long it takes to get there and
Speaker 2: your assurance that will pick the best, best route, put
Speaker 2: some sort of dollar figures behind that. How it compares
Speaker 2: to jumping in an uber or a lift driven by
Speaker 2: a human.
Speaker 15: So we're anchoring around what we call the comfort pricings.
Speaker 15: This is known in the industry as a category of
Speaker 15: fair one thing, that one decision we've made. It's so
Speaker 15: early in the journey, so whatever we quoted you in
Speaker 15: terms of the best route, that is what we will
Speaker 15: charge you. So base fair time distance traveled. There are
Speaker 15: some search charges, so for example, the airport is not
Speaker 15: starting on Monday, the rest of the destinations are, but
Speaker 15: it'll be coming online soon, so there's a search charge
Speaker 15: for that. We're also offering some delightful experiences to the
Speaker 15: sphere with a special autossis Vegas in Las Vegas, Yeah,
Speaker 15: with a drop off, so there might be an additional
Speaker 15: fee for that. But whatever we tell you we're going
Speaker 15: to charge you is what we're going to charge you.
Speaker 15: If we took a little longer or the route was
Speaker 15: a little longer, we are not going to change the price.
Speaker 2: The learnings from Las Vegas, you know, I think the
Speaker 2: very simple question is are people that are in Las
Speaker 2: Vegas and hail. Are Zookes prepared to pay for it?
Speaker 15: Well, we were about to find out, so you must.
Speaker 3: Have an indication though.
Speaker 15: Yeah, the demand has been awesome. We've been monitoring from
Speaker 15: customers not just how do they enjoy the experience, but
Speaker 15: what they're willing to pay for it. So we are
Speaker 15: cautiously optimistic that they will be happy to pay for
Speaker 15: this experience and hopefully that will also modulate a little
Speaker 15: bit of the way times that you see in well
Speaker 15: as Vegas right now because it's.
Speaker 2: Free charging a fair is a big piece of news
Speaker 2: because it allows you to progress commercially right beyond R
Speaker 2: and D. But it's not the only piece of news.
Speaker 2: So regulators said, over the next two years, you can
Speaker 2: deploy five thousand of the Zookes on public roads. How
Speaker 2: do you respond to that, like, what's the ramp up
Speaker 2: in production and deployment?
Speaker 15: So I haven't changed measured approach, but you can see
Speaker 15: if you're laughing, measured approach, but you can. I mean,
Speaker 15: one of the things we're looking forward to was starting
Speaker 15: the commercial journey, but also just starting to unleash more robots.
Speaker 10: Now they're not going to.
Speaker 15: Come all at once, will slowly ramp up the flare
Speaker 15: of the fleet size at all locations, and we think
Speaker 15: that five thousand is only the beginning.
Speaker 2: For the record and the tape. I don't know which
Speaker 2: camera the director wants to look at. I'm not laughing
Speaker 2: at Iesha, I'm just smiling because you're always cautious. You're
Speaker 2: always very deliberate in the timelines that you set out,
Speaker 2: more modest than other CEOs we've heard from in the
Speaker 2: last twenty four hours. But you know, you have utilization
Speaker 2: data in lots of cities. There isn't necessarily a match
Speaker 2: of the supply of those vehicles to the demand right now.
Speaker 15: We're very confident in the utilization. I mean, look, it
Speaker 15: can't be one hundred percent because we have to go
Speaker 15: pick up people, drop them off, go pick up the
Speaker 15: next customer. But the industry quotes around fifty four percent.
Speaker 15: We're very confident that we will beat that and we've
Speaker 15: seen that from customers.
Speaker 2: Zoos is owned by Amazon, right, how much pressure are
Speaker 2: you under to deliver some commercial success, bring in some
Speaker 2: real revenues and money.
Speaker 15: A lot less pressure than I put on myself. How's
Speaker 15: that It's been a long journey. We're celebrating our twelveth anniversary.
Speaker 15: So starting this phase. I mean, we've always said we're
Speaker 15: here to build a business. We're here to deliver an
Speaker 15: experience for people and frankly, to change how people move
Speaker 15: throughout society. So Amazon is a great parent. I have
Speaker 15: zero complaints literally, but you know a lot of us
Speaker 15: have been waiting a long time, and so to finally
Speaker 15: sit here and talk about building the business as opposed
Speaker 15: to just the progress of the technology is key.
Speaker 5: Now.
Speaker 15: Having said that, safety, foundational and perform well, that's key.
Speaker 2: What people might not be familiar with is that you
Speaker 2: build the zookes here in the Bay Area.
Speaker 3: You're talking a little bit about that quickly.
Speaker 15: The factory is great, it's producing. It's nice that we
Speaker 15: used to talk about how many robots per week. We're
Speaker 15: now talking about how many robots per day. It's cranking.
Speaker 15: They are ready to go, and we'll start unnishing them
Speaker 15: into these multiple locations.
Speaker 2: Hi, Shevn's CEO back with us on Bloomberg Tech. Thank
Speaker 2: you very much, my pleasure.
Speaker 10: Thank you.
Speaker 2: Some news crossing the Bloomberg terminal a few moments ago.
Speaker 2: Sources tell Bloomberg that hackers launched a wave of sophisticated
Speaker 2: attacks on Wall Street firms in recent days, targeting information
Speaker 2: systems at major money managers, including Two Sigma, Citadel, and
Speaker 2: Point seventy two. Several private equity firms were also targeted
Speaker 2: as part of the assault. This again, according to sources,
Speaker 2: We're going to keep tracking the story and bring you
Speaker 2: any developments as we get them coming up in the show.
Speaker 2: SpaceX is taking aim at the telecoms giants. We're going
Speaker 2: to look at the company's ambitious wireless plans.
Speaker 3: This is Bloomberg Tech.
Speaker 16: As far as revenue, like, I'm just going to take
Speaker 16: a very high level kind of top down the big
Speaker 16: three in the United States, AT and T, Verizon, and
Speaker 16: Timo roughly between them six hundred billion dollars a year,
Speaker 16: and I anticipate us to be able to acquire quite
Speaker 16: a few of their customers because I think our service
Speaker 16: will be better. We will eliminate dead zones, leveraging the
Speaker 16: the basically the satellites in orbit.
Speaker 2: There was SpaceX president Gwynn shot Well speaking on yesterday's
Speaker 2: Earning School and outlining the company's wireless ambitions. Bloomberg Intelligence
Speaker 2: analyst George Ferguson says the connectivity business should continue to
Speaker 2: benefit from steady growth and subscribers and expanding satellite capacity,
Speaker 2: and George joins us now that there's a lot in that,
Speaker 2: but basically they said, we're going to combine the work
Speaker 2: that they've done in satellite based connectivity starlink direct to
Speaker 2: sell with terrestrial investments and go after the US carriers.
Speaker 3: How did you react to that?
Speaker 10: Yeah, I mean that's that's what I heard.
Speaker 17: And so look, I'm just going to caveat thet's start
Speaker 17: of our discussion with John Butler covers those companies. He
Speaker 17: and I talk about it, and we've talked since the
Speaker 17: earnings those terrestrials carriers. The discussion around it seemed pretty aggressive, right,
Speaker 17: I think they talked about running most of broadband in
Speaker 17: a decade or something like that. And yes, look, you
Speaker 17: know near term when we discuss the technology they have here, right, Look,
Speaker 17: I think the new satellites, the V three's are coming out,
Speaker 17: they'll be better, but there's still a bunch of latency
Speaker 17: between satellites and terrestrial stations. I really feel like their
Speaker 17: broadband service is really one that's going to initially get
Speaker 17: built around where there's gaps and coverage for terrestrial for
Speaker 17: trust or providers. They've got to improve that service dramatically.
Speaker 17: That's one of the reasons why you're seeing so much cappex.
Speaker 10: And R and D.
Speaker 17: I think in order to go after those major carriers
Speaker 17: and take a lot of that market share and the revenue.
Speaker 17: I think they were pointing to yesterday, and I would
Speaker 17: know as I sort of closed my comments initially, is that, look,
Speaker 17: I don't think those carriers are going to roll over
Speaker 17: and just give all their customers.
Speaker 10: A way, you know, to SpaceX.
Speaker 17: So I think you have a good old fashioned, you know,
Speaker 17: price fight on your hand. So I'm not sure that
Speaker 17: you're going to get everything you think it's worth, even
Speaker 17: if you go out and try to conquest all their
Speaker 17: good points, all their customers.
Speaker 2: I mean, Gwen Shutwell said they will acquire those customers,
Speaker 2: and you know that word acquired doing a lot of work.
Speaker 2: Let's go back to the core earnings outlook thesis. SpaceX's
Speaker 2: losses generally overall narrowed in part because the connectivity business
Speaker 2: is still the cash cow.
Speaker 17: Yeah, agreed, But I mean, look, I was one of
Speaker 17: the things I kind of hate to do as an
Speaker 17: analyst is to take a look at sort of six
Speaker 17: month chunks, But I decided to do it anyways because
Speaker 17: there's a company that's growing so fast, and I messed
Speaker 17: around a little bit with that, right, and so in
Speaker 17: most of their businesses, well, I mean one first, we
Speaker 17: know that we know that space, the Launch business and
Speaker 17: AI both were loss making. Neither one of them returned,
Speaker 17: you know, any type of profit. There's a lot of
Speaker 17: R and D going in a boat with those businesses. Really,
Speaker 17: even when you're back the R and D out of Launch,
Speaker 17: it was a flatish business. It looks about as good
Speaker 17: this year at midpoint as it looked last year. And
Speaker 17: you know, look, I think the you know, the connectivity business,
Speaker 17: they grew revenues fifty percent, they grew profit like forty
Speaker 17: six percent, so margins you know, a little bit deteriorated.
Speaker 10: So they they're it's a it's okay, right.
Speaker 17: It's it's performing okay, I think from a longer term.
Speaker 17: And then AI, you know, they they they you know,
Speaker 17: really raised a lot of revenue. I think it was
Speaker 17: like six times or something, sorry, one point three times,
Speaker 17: but costs roads six times.
Speaker 10: So kind of hard to win at that, so.
Speaker 2: Right, George Ferguson of Bloomberg Intelligence, thank you for your service,
Speaker 2: looking at the numbers that does it. In this edition
Speaker 2: of Bloomberg Tech, tune in tomorrow, we're going to speak
Speaker 2: the CEO of Western Digital after their earnings, talking data storage, hyperscoing, infrastructure,
Speaker 2: a whole lot more. It was a big show. Recap
Speaker 2: on the podcast. You know where to find it. This
Speaker 2: is Bloomberg Tech