1 00:00:02,240 --> 00:00:05,600 Speaker 1: From the heart of where innovation, money and power collive 2 00:00:06,360 --> 00:00:10,880 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:10,920 --> 00:00:26,960 Speaker 1: Emily Jay I'm Emily check in San Francisco and this 4 00:00:27,000 --> 00:00:29,440 Speaker 1: is Bloomberg Technology. Coming up in the next hour, Apple 5 00:00:29,480 --> 00:00:33,880 Speaker 1: share soar after an impressive second quarter records almost across 6 00:00:33,920 --> 00:00:37,040 Speaker 1: the ward, beats on iPhone sales, iPad Mac, an all 7 00:00:37,120 --> 00:00:41,320 Speaker 1: time services record, also for the services business. I spoke 8 00:00:41,320 --> 00:00:43,760 Speaker 1: with Apple CEO Tim Cook and will tell you what 9 00:00:43,800 --> 00:00:46,800 Speaker 1: he had to say. And just as Elon Musku is 10 00:00:46,840 --> 00:00:50,320 Speaker 1: poised to take over Twitter, revenue misses the slowest growth 11 00:00:50,360 --> 00:00:53,000 Speaker 1: in six quarters. This on top of a new report 12 00:00:53,360 --> 00:00:56,880 Speaker 1: that the FTC is investigating how Musk disclosed his purchases 13 00:00:56,880 --> 00:01:00,480 Speaker 1: of Twitter shares as he amassed a massive steak in 14 00:01:00,600 --> 00:01:05,039 Speaker 1: secret and qualcom source as the Chip Giant diversifies beyond 15 00:01:05,080 --> 00:01:09,320 Speaker 1: phones to cars, networks and computers, CEO Cristiano Amman joins 16 00:01:09,400 --> 00:01:11,840 Speaker 1: us later this hour. We will get to all of 17 00:01:11,880 --> 00:01:14,080 Speaker 1: that in a moment, but first we are watching Apple 18 00:01:14,160 --> 00:01:17,920 Speaker 1: and Amazon results. Also out this hour, Bloombriggs Emily Grafao 19 00:01:18,280 --> 00:01:20,679 Speaker 1: joins us now to see how investors are reacting. Emily 20 00:01:20,680 --> 00:01:23,039 Speaker 1: take it away hi Emily Will was a largely green 21 00:01:23,160 --> 00:01:25,600 Speaker 1: day for the US stock marke at the SMP five 22 00:01:25,680 --> 00:01:28,679 Speaker 1: hundred ended up two point four seven percent, and the 23 00:01:28,720 --> 00:01:32,119 Speaker 1: tech heavy Nasdaq one hundred also ended up higher three 24 00:01:32,240 --> 00:01:34,800 Speaker 1: by three point four eight percent. That was the largest 25 00:01:34,840 --> 00:01:38,119 Speaker 1: one day game since March sixteenth. We also saw yields 26 00:01:38,160 --> 00:01:41,400 Speaker 1: higher but didn't seem to bother US equity investors from 27 00:01:41,400 --> 00:01:44,000 Speaker 1: buying up stocks. And of course it was a largely 28 00:01:44,080 --> 00:01:46,720 Speaker 1: risk on day. So we also saw bitcoin finishing the 29 00:01:46,840 --> 00:01:49,040 Speaker 1: day in New York higher. We tend to see that 30 00:01:49,240 --> 00:01:52,120 Speaker 1: risk on trade. Bitcoin tends to get higher. But the 31 00:01:52,160 --> 00:01:54,520 Speaker 1: big story of the day was really all about the 32 00:01:54,560 --> 00:01:57,240 Speaker 1: big tech earnings coming up. We're gonna look at Apple 33 00:01:57,360 --> 00:02:01,000 Speaker 1: right now because the stock is rallying after reported earnings. 34 00:02:01,040 --> 00:02:04,120 Speaker 1: They are up right now about point four seven percent. 35 00:02:04,200 --> 00:02:07,320 Speaker 1: They beat on sales, they beat on profits. They reported 36 00:02:07,320 --> 00:02:11,120 Speaker 1: sales rising to about ninety seven point three billion dollars 37 00:02:11,160 --> 00:02:13,640 Speaker 1: in the quarter. It was largely fueled by demand for 38 00:02:13,680 --> 00:02:17,280 Speaker 1: iPhones demand for their web services. They also announced a 39 00:02:17,360 --> 00:02:20,400 Speaker 1: ninety billion dollar stock buy back program, and so you're 40 00:02:20,400 --> 00:02:23,640 Speaker 1: really seeing that optimism reflected uh in the stock price, 41 00:02:23,720 --> 00:02:26,880 Speaker 1: but it wasn't positive for all of the big tech companies. 42 00:02:26,919 --> 00:02:30,520 Speaker 1: I'm looking at Amazon right now, down nine point five 43 00:02:30,639 --> 00:02:34,040 Speaker 1: four percent in the post market. They missed on sales 44 00:02:34,080 --> 00:02:37,600 Speaker 1: for this quarter, but they also projected um a forward 45 00:02:37,600 --> 00:02:41,160 Speaker 1: guidance that was lower than analysts expected for the next quarter. 46 00:02:41,200 --> 00:02:43,200 Speaker 1: And it was the same thing for Intel. You're seeing 47 00:02:43,240 --> 00:02:47,280 Speaker 1: until down about four uh percent in the post market. 48 00:02:47,360 --> 00:02:50,360 Speaker 1: They also projected that that forward guidance for the next 49 00:02:50,440 --> 00:02:53,919 Speaker 1: quarter was going to be lower than analyst estimates. Twitter 50 00:02:54,160 --> 00:02:56,680 Speaker 1: also reported earnings this morning. It was one of the 51 00:02:56,720 --> 00:03:01,560 Speaker 1: final earnings reports before Mr Elon Musk take the company private. 52 00:03:01,639 --> 00:03:04,720 Speaker 1: They did miss on revenue, but interesting to note they 53 00:03:04,760 --> 00:03:08,960 Speaker 1: did report a six increase in their daily active users, 54 00:03:09,240 --> 00:03:14,800 Speaker 1: so daily active users grew to million, and that beat estimates. 55 00:03:14,800 --> 00:03:17,120 Speaker 1: And then we're also seeing again that Apple shares falling 56 00:03:17,160 --> 00:03:19,920 Speaker 1: lectually a little bit now um in the postmarket. Emily, 57 00:03:20,480 --> 00:03:23,080 Speaker 1: all right, Emily graffe O, thank you. Lots to break 58 00:03:23,080 --> 00:03:25,080 Speaker 1: down throughout the show. I want to start with Apple 59 00:03:25,120 --> 00:03:29,519 Speaker 1: beating estimates yet again, shares rising in extended trading. This 60 00:03:29,680 --> 00:03:34,200 Speaker 1: Apple's biggest non holiday quarter ever. I spoke with Apple 61 00:03:34,240 --> 00:03:37,520 Speaker 1: CEO Tim Cook just moments ago to break down his 62 00:03:37,600 --> 00:03:39,560 Speaker 1: remarks and the numbers I want to bring in. Juliasc 63 00:03:39,640 --> 00:03:42,160 Speaker 1: vice president and principal analyst at Forrester Research, and Tom 64 00:03:42,240 --> 00:03:45,880 Speaker 1: Giles are Bloomberg Tech Executive editor. Thank you both for 65 00:03:46,000 --> 00:03:48,640 Speaker 1: being here. Looking across the board, it is fairly impressive 66 00:03:48,680 --> 00:03:51,640 Speaker 1: to see how Apple weathered the macro environment. On the 67 00:03:51,680 --> 00:03:54,440 Speaker 1: call with me, Tim Cook said it was a record quarter. 68 00:03:54,680 --> 00:03:57,680 Speaker 1: We grew in each of our categories except iPad, where 69 00:03:57,720 --> 00:04:02,040 Speaker 1: we had very significant supply constraints. He said they did 70 00:04:02,080 --> 00:04:05,840 Speaker 1: experience apply constraints, but they were significantly lower than what 71 00:04:05,920 --> 00:04:08,960 Speaker 1: they experienced in December, and that they were all silicon 72 00:04:09,040 --> 00:04:12,880 Speaker 1: shortage related, so chip issue related. And it's of course 73 00:04:12,880 --> 00:04:16,560 Speaker 1: that's an industry wide issue that affected several of their products. Julie, 74 00:04:16,560 --> 00:04:20,080 Speaker 1: what's your big takeaway that despite they supply constraints, despite 75 00:04:20,680 --> 00:04:26,400 Speaker 1: macro economic uncertainty, Apple still blowing it out of the water. Yeah, no, 76 00:04:26,600 --> 00:04:28,640 Speaker 1: it's it's exciting to watch. And I think you know, 77 00:04:28,720 --> 00:04:30,600 Speaker 1: one of the things that we always know about Apple 78 00:04:30,800 --> 00:04:34,960 Speaker 1: is there in terms of like worldwide market share for 79 00:04:35,040 --> 00:04:38,280 Speaker 1: something like smartphones or PCs, they have a minority stake 80 00:04:38,360 --> 00:04:40,919 Speaker 1: relative to Android and some other platforms, so there's always 81 00:04:40,960 --> 00:04:43,200 Speaker 1: going to be a lot of upside and Apple is 82 00:04:43,240 --> 00:04:45,960 Speaker 1: always going in a forward direction. It's very common that 83 00:04:46,000 --> 00:04:49,880 Speaker 1: if I own an iOS smartphone or I own laptop maclaptop, 84 00:04:50,200 --> 00:04:52,400 Speaker 1: are more likely to buy an Apple device with my 85 00:04:52,480 --> 00:04:55,640 Speaker 1: next purchase, a more likely to buy Apple services. So 86 00:04:55,720 --> 00:04:59,200 Speaker 1: the stickiness of their devices and services is very high. 87 00:04:59,320 --> 00:05:01,440 Speaker 1: And so yeah, there's a lot of upside for Apple 88 00:05:01,480 --> 00:05:05,480 Speaker 1: ahead as we look forward, Tom, how don't score this 89 00:05:05,520 --> 00:05:08,080 Speaker 1: with with Amazon's results, which we're going to dig into 90 00:05:08,120 --> 00:05:11,400 Speaker 1: a little later in the show, but sluggish second quarter sales. Uh. 91 00:05:11,520 --> 00:05:15,479 Speaker 1: Tim Cook did say they're seeing inflationary pressure, but that 92 00:05:15,720 --> 00:05:18,159 Speaker 1: in their op X and gross margins you see that 93 00:05:18,200 --> 00:05:21,640 Speaker 1: reflected and they're navigating that as best they can. But 94 00:05:21,720 --> 00:05:25,200 Speaker 1: still these numbers, it's a night and day situation here. 95 00:05:25,320 --> 00:05:29,360 Speaker 1: Apple benefited from the fact they introduced a new lower 96 00:05:29,400 --> 00:05:32,120 Speaker 1: cost iPhone that started to kick in during the quarter. 97 00:05:32,360 --> 00:05:36,000 Speaker 1: iPhone continues to be this big money maker for them, 98 00:05:36,279 --> 00:05:38,800 Speaker 1: and they really took advantage of that. And as your 99 00:05:38,800 --> 00:05:43,000 Speaker 1: other guests pointed out, services they keep they keep adding services, 100 00:05:43,040 --> 00:05:46,640 Speaker 1: and they keep making that an attractive proposition for iPhone 101 00:05:46,680 --> 00:05:49,360 Speaker 1: owners and getting you to come back to it, whether 102 00:05:49,440 --> 00:05:52,599 Speaker 1: it's app downloads, whether it's entertainment, etcetera. So it just 103 00:05:52,720 --> 00:05:57,000 Speaker 1: keeps going on and on and on Amazon huge contrast 104 00:05:57,320 --> 00:06:00,599 Speaker 1: inflation inflation. Inflation seems to be a big issue there. 105 00:06:00,640 --> 00:06:03,760 Speaker 1: You're talking about rising fuel costs. Remember we broke the 106 00:06:03,800 --> 00:06:08,080 Speaker 1: news that they imposed a surcharge for their their partners 107 00:06:08,160 --> 00:06:12,920 Speaker 1: to account for rising fuel costs and other inflationary pressures. 108 00:06:12,960 --> 00:06:16,719 Speaker 1: That took a toll over. Capacity is another important story 109 00:06:16,760 --> 00:06:20,400 Speaker 1: about Amazon, and they really invested in warehouses, they invested 110 00:06:20,440 --> 00:06:24,719 Speaker 1: in people because remember Amazon had this surge in demand 111 00:06:24,800 --> 00:06:27,160 Speaker 1: during the pandemic. We were all at home, we were 112 00:06:27,200 --> 00:06:32,719 Speaker 1: all ordering everything online, and that hugely benefited Amazon. That 113 00:06:32,880 --> 00:06:36,080 Speaker 1: party cannot continue forever, and we are starting to see 114 00:06:36,120 --> 00:06:39,839 Speaker 1: the effects of the trail off in the pandemic fueled 115 00:06:39,920 --> 00:06:43,120 Speaker 1: boom that Amazon benefited from for so long. Now. I 116 00:06:43,160 --> 00:06:45,159 Speaker 1: did ask for Tim Cook for more color on the 117 00:06:45,200 --> 00:06:46,960 Speaker 1: current corn and what he sees through the end of 118 00:06:46,960 --> 00:06:49,840 Speaker 1: the year, when it comes to demand, when it comes 119 00:06:49,880 --> 00:06:52,760 Speaker 1: to supply chain issues, when it comes to Russia. He 120 00:06:52,800 --> 00:06:54,160 Speaker 1: said they'd get into all of that on the call, 121 00:06:54,200 --> 00:06:55,800 Speaker 1: and we are listening in and you can follow on 122 00:06:56,400 --> 00:06:59,360 Speaker 1: along at our t live block. He actually said they're 123 00:06:59,360 --> 00:07:02,320 Speaker 1: going to be giving an number on Russia revenue specifically, 124 00:07:02,360 --> 00:07:04,239 Speaker 1: and what kind of a hit they took their given 125 00:07:04,240 --> 00:07:07,760 Speaker 1: that they paused sales of products. Julie, what is your 126 00:07:07,800 --> 00:07:11,760 Speaker 1: outlook on how Apple will continue to whether supply constraints 127 00:07:11,760 --> 00:07:17,920 Speaker 1: should they persist given an ongoing lockdown in China? Yeah, so, 128 00:07:18,040 --> 00:07:20,520 Speaker 1: well that thing is supply chain analysts. I think, you know, Emily, 129 00:07:20,520 --> 00:07:22,160 Speaker 1: you really kicked it off, and you started the call 130 00:07:22,240 --> 00:07:24,760 Speaker 1: and said, you know, despite whatever happens, whether there's a war, 131 00:07:24,800 --> 00:07:27,280 Speaker 1: there's a pandemic, there's supply chain issue, there's a lockdown 132 00:07:27,280 --> 00:07:31,120 Speaker 1: in China, Apple continues to weather it will. So you know, 133 00:07:31,160 --> 00:07:33,680 Speaker 1: they just seem to be somehow better positioned than perhaps 134 00:07:33,680 --> 00:07:36,960 Speaker 1: some of their competitors and consumer electronics to ride through 135 00:07:36,960 --> 00:07:39,400 Speaker 1: the supply chain issues even though it is impacting you know, 136 00:07:39,440 --> 00:07:42,440 Speaker 1: one or two of their categories today. So I just 137 00:07:42,600 --> 00:07:45,560 Speaker 1: tend to never underestimate what Apple can get done. All right, 138 00:07:45,600 --> 00:07:47,000 Speaker 1: I want to talk a little bit more about their 139 00:07:47,000 --> 00:07:49,840 Speaker 1: services business, because, of course the other big story in 140 00:07:49,880 --> 00:07:52,440 Speaker 1: the business world is streaming and the decline we saw 141 00:07:52,440 --> 00:07:55,080 Speaker 1: on Netflix subscribers. Of course, Apple has a signal, you know, 142 00:07:55,120 --> 00:07:57,680 Speaker 1: a significant position or has made a significant bet there 143 00:07:58,040 --> 00:08:00,680 Speaker 1: with TV Plus, and I asked know how that's doing 144 00:08:00,720 --> 00:08:02,680 Speaker 1: and if they're still as bullish on streaming. He said, 145 00:08:02,880 --> 00:08:05,320 Speaker 1: we're very bullish. Our philosophy for TV plus from the 146 00:08:05,320 --> 00:08:09,400 Speaker 1: beginning and it continues unchanged is to create high quality, 147 00:08:09,400 --> 00:08:12,280 Speaker 1: original content that aligns well with our values and to 148 00:08:12,320 --> 00:08:14,840 Speaker 1: be one of the most desire platforms for storytellers. And 149 00:08:14,880 --> 00:08:16,800 Speaker 1: I feel we're doing a pretty good job of that. 150 00:08:17,000 --> 00:08:21,800 Speaker 1: He highlighted Coda, which of course won the Oscar for 151 00:08:21,840 --> 00:08:24,400 Speaker 1: Best Picture and I think was extraordinary. He highlighted the 152 00:08:24,440 --> 00:08:28,360 Speaker 1: success of ted Lasso. You know, you know, certainly not 153 00:08:28,440 --> 00:08:30,480 Speaker 1: as big a bet on on on streaming as as 154 00:08:30,520 --> 00:08:33,920 Speaker 1: Netflix has made um on streaming. But Tom, what do 155 00:08:33,960 --> 00:08:35,640 Speaker 1: you make of the fact that this is an area 156 00:08:35,679 --> 00:08:38,480 Speaker 1: that they're going to continue to invest in. They're coming 157 00:08:38,520 --> 00:08:41,280 Speaker 1: from behind here. They don't have to prove themselves in 158 00:08:41,320 --> 00:08:44,680 Speaker 1: the way Netflix is the is the player to really 159 00:08:44,800 --> 00:08:48,040 Speaker 1: knock off on this on streaming right now, and we're 160 00:08:48,040 --> 00:08:52,959 Speaker 1: starting to see that happen. Apple is a much smaller 161 00:08:53,000 --> 00:08:56,040 Speaker 1: player there they are, they're coming from behind, and it's 162 00:08:56,040 --> 00:08:59,120 Speaker 1: all upside to them. It's one of many businesses. This 163 00:08:59,200 --> 00:09:02,240 Speaker 1: is a very law overall percentage when you think about 164 00:09:02,280 --> 00:09:05,360 Speaker 1: where they get their revenue from. It's almost like gravy 165 00:09:05,440 --> 00:09:09,000 Speaker 1: for them in some ways, and they're not betting the 166 00:09:09,080 --> 00:09:12,600 Speaker 1: farm on streaming. They are investing in great shows. We're 167 00:09:12,640 --> 00:09:15,720 Speaker 1: all waiting for the next season of ted Lasso, but 168 00:09:15,800 --> 00:09:19,480 Speaker 1: it's not the centerpiece of their of their strategy. I'm 169 00:09:19,600 --> 00:09:22,560 Speaker 1: very curious to hear on the call any more detail 170 00:09:22,600 --> 00:09:25,000 Speaker 1: they can give us about their user numbers, the time 171 00:09:25,200 --> 00:09:28,400 Speaker 1: being spent, and are they getting any of the subscribers 172 00:09:28,400 --> 00:09:30,840 Speaker 1: who are maybe not spending as much time on Netflix 173 00:09:30,960 --> 00:09:33,240 Speaker 1: right now? And just on the supply chain. I want 174 00:09:33,240 --> 00:09:36,360 Speaker 1: to add on something Julie said, think about where China 175 00:09:36,559 --> 00:09:40,240 Speaker 1: is the lockdowns. Are the parts of China that are 176 00:09:40,280 --> 00:09:43,000 Speaker 1: that Apple is really dependent on, are not the parts 177 00:09:43,040 --> 00:09:46,680 Speaker 1: of China that are really most severely hurt right now. 178 00:09:47,520 --> 00:09:50,000 Speaker 1: I was very surprised at how upbeat Tim Cook was 179 00:09:50,120 --> 00:09:53,360 Speaker 1: about the supply chain issue, how much better it's getting. 180 00:09:54,040 --> 00:09:58,080 Speaker 1: The question is if the lockdown spread much more significantly 181 00:09:58,080 --> 00:10:00,960 Speaker 1: throughout China than what happens top All right, we'll be 182 00:10:01,000 --> 00:10:03,680 Speaker 1: listening for all of that on the call. Tom Giles, 183 00:10:03,679 --> 00:10:07,520 Speaker 1: our executive editor, thank you as well as juliask much 184 00:10:07,520 --> 00:10:10,680 Speaker 1: more to come we're gonna be talking about Amazon falling 185 00:10:10,880 --> 00:10:13,760 Speaker 1: after less than stellar results. Break down all of that, 186 00:10:13,800 --> 00:10:16,800 Speaker 1: including what role inflation and the supply chain is playing 187 00:10:16,840 --> 00:10:29,080 Speaker 1: in the miss That is next. This is Bloomberg, Amazon 188 00:10:29,240 --> 00:10:31,880 Speaker 1: tumbling after a less than stellar earnings report, including a 189 00:10:31,920 --> 00:10:34,080 Speaker 1: loss in the first quarter and projected loss in the 190 00:10:34,160 --> 00:10:37,160 Speaker 1: second quarter. I'm joined now by Melissa Burdic, president and 191 00:10:37,160 --> 00:10:39,319 Speaker 1: co founder of pack few, and of course a former 192 00:10:39,400 --> 00:10:43,280 Speaker 1: Amazon employee. Melissa, what's your takeaway here, especially given the 193 00:10:43,360 --> 00:10:48,000 Speaker 1: strong numbers from Apple. I know that's a pretty crazy 194 00:10:48,080 --> 00:10:49,959 Speaker 1: but like the gentleman said, the bore and really is 195 00:10:50,000 --> 00:10:53,560 Speaker 1: apples and oranges. Um. You know, this quarter people return 196 00:10:53,640 --> 00:10:56,880 Speaker 1: to stores. There's also more competition in e commerce. There's 197 00:10:56,920 --> 00:10:59,640 Speaker 1: more sites people are shopping at in addition to going 198 00:10:59,640 --> 00:11:02,520 Speaker 1: to school, is Walmart and Sapart, Target, They all have 199 00:11:02,600 --> 00:11:05,160 Speaker 1: a target on Amazon's back, and they're they're getting better. 200 00:11:05,679 --> 00:11:08,760 Speaker 1: Another thing too, is that you know the supply chain georages, 201 00:11:09,040 --> 00:11:12,199 Speaker 1: of course everyone knew about. Brands are also taking a 202 00:11:12,280 --> 00:11:15,040 Speaker 1: lot of cost increases and spending some time negotiating with 203 00:11:15,080 --> 00:11:18,640 Speaker 1: Amazon trying to get those costs increases through, and sometimes 204 00:11:18,640 --> 00:11:20,880 Speaker 1: they stop shipping during that time as they were doing 205 00:11:20,920 --> 00:11:23,880 Speaker 1: that negotiation, and then the other thing that also happened. 206 00:11:23,880 --> 00:11:27,319 Speaker 1: You know, Amazon did increase crime rate from one nineteen 207 00:11:27,360 --> 00:11:30,160 Speaker 1: a month to one thirty nine. In terms of their 208 00:11:30,160 --> 00:11:33,400 Speaker 1: membership feed and we do you see the subscription revenue 209 00:11:33,440 --> 00:11:36,599 Speaker 1: was slightly higher eight point four billion last quarter or 210 00:11:36,679 --> 00:11:39,480 Speaker 1: eight point one billion this quarter. But that's definitely something 211 00:11:40,000 --> 00:11:45,040 Speaker 1: to watch. So, you know, what about the supply chain 212 00:11:45,200 --> 00:11:48,920 Speaker 1: issues we're seeing Apple, for example, navigating you know, ongoing 213 00:11:48,960 --> 00:11:52,040 Speaker 1: supply issues quite well. You know, what is it that 214 00:11:52,120 --> 00:11:54,319 Speaker 1: Amazon needs to do? And you know, if it's Apples 215 00:11:54,360 --> 00:11:58,200 Speaker 1: two oranges, how are Amazon supply issues different from what 216 00:11:58,600 --> 00:12:03,360 Speaker 1: a company like Apple is facing. It's just so different 217 00:12:03,360 --> 00:12:06,960 Speaker 1: because Amazon relies on merchants, you know, third party merchants 218 00:12:07,000 --> 00:12:10,520 Speaker 1: and brands versus Apple has whole control over just what 219 00:12:10,679 --> 00:12:14,720 Speaker 1: they're selling. So especially with the lockdown in China where 220 00:12:14,720 --> 00:12:18,520 Speaker 1: there's zero tolerance of COVID sellers, you know, there's no 221 00:12:18,600 --> 00:12:21,960 Speaker 1: manufacturing during that time frame, so sellers are not able 222 00:12:22,000 --> 00:12:24,640 Speaker 1: to get their goods. The Amazon is just reliant on 223 00:12:25,080 --> 00:12:28,200 Speaker 1: you know, their party marketplace and retailers or i'm sorry, 224 00:12:28,200 --> 00:12:31,920 Speaker 1: brands that are reliant on the manufacturing supply chains. It's 225 00:12:32,000 --> 00:12:35,040 Speaker 1: it's really Amazon in the marketplace that is trying to 226 00:12:35,120 --> 00:12:37,040 Speaker 1: broker all these things, and it's the brands and the 227 00:12:37,120 --> 00:12:42,640 Speaker 1: third party sellers that are really having struggles and challenges there. Meantime, 228 00:12:42,760 --> 00:12:47,360 Speaker 1: of course, we're seeing wage inflation, rising gas prices. You know, 229 00:12:47,400 --> 00:12:50,720 Speaker 1: how is this all going to impact consumer spending, you know, 230 00:12:50,760 --> 00:12:54,920 Speaker 1: which is like the bread and butter of Amazon dot Com. Yeah, 231 00:12:54,960 --> 00:12:57,360 Speaker 1: I agree, And one one thing, just to correct the 232 00:12:57,679 --> 00:13:01,439 Speaker 1: last gentleman did say that Amazon implemented a fuel searcharts. 233 00:13:01,520 --> 00:13:04,280 Speaker 1: It actually goes into effect at the end of April, UM, 234 00:13:04,320 --> 00:13:06,320 Speaker 1: so in a couple of days from now, actually think today. 235 00:13:06,920 --> 00:13:09,560 Speaker 1: So I don't think that impacted too much yet. But 236 00:13:09,760 --> 00:13:12,520 Speaker 1: I mean, the reality is is that prices are going up, 237 00:13:12,600 --> 00:13:16,520 Speaker 1: costs are going up, so um, there will be some slowing, 238 00:13:16,679 --> 00:13:18,880 Speaker 1: but there are some bright spots, you know. One of 239 00:13:18,920 --> 00:13:20,679 Speaker 1: the things that people are just point about with Q 240 00:13:20,880 --> 00:13:24,559 Speaker 1: two that also had some you know, poor guidance, and 241 00:13:24,640 --> 00:13:27,679 Speaker 1: I think the market light but Prime Day is always 242 00:13:27,720 --> 00:13:29,839 Speaker 1: a shining star, and that's actually going to be in 243 00:13:30,000 --> 00:13:32,280 Speaker 1: Q three this year, and so I do think that 244 00:13:32,320 --> 00:13:35,440 Speaker 1: customers are going to be looking for deals and Amazon 245 00:13:35,559 --> 00:13:38,320 Speaker 1: has the capacity they've built up the supply chain. They're 246 00:13:38,360 --> 00:13:41,400 Speaker 1: going to be having a huge Q three this uh 247 00:13:41,480 --> 00:13:44,520 Speaker 1: this year with Prime Day. Let's talk a little bit 248 00:13:44,559 --> 00:13:47,600 Speaker 1: about about streaming because Amazon also has a bet here 249 00:13:47,679 --> 00:13:51,440 Speaker 1: and it impacts potentially prime subscription. We we saw what 250 00:13:51,480 --> 00:13:54,280 Speaker 1: happened with Netflix. We just heard Apple CEO Tim Cook 251 00:13:54,400 --> 00:13:58,120 Speaker 1: telling me they're still very bullish on Apple TV plus. 252 00:13:58,440 --> 00:14:00,680 Speaker 1: You know, this is a big area of ending for 253 00:14:00,880 --> 00:14:03,400 Speaker 1: all of these companies. Should Amazon continue to be pouring 254 00:14:03,440 --> 00:14:06,000 Speaker 1: money into this and how does it impact the bottom line. 255 00:14:06,720 --> 00:14:10,679 Speaker 1: I'm super positive on Amazon streaming opportunity. They just bought 256 00:14:10,760 --> 00:14:13,960 Speaker 1: MGM that closed last month, so that gives them access 257 00:14:13,960 --> 00:14:16,840 Speaker 1: to senting tholls and TV shows and four thousand films. 258 00:14:17,240 --> 00:14:21,400 Speaker 1: They're gonna have the most expensive show this this fall, 259 00:14:21,440 --> 00:14:24,200 Speaker 1: which sounds pretty cool with the Lord the Rings, and 260 00:14:24,200 --> 00:14:26,880 Speaker 1: then they're also talking about bring an NFL game to 261 00:14:26,960 --> 00:14:31,480 Speaker 1: Black Friday. What's beautiful about Amazon streaming opportunity is also 262 00:14:31,560 --> 00:14:34,440 Speaker 1: their ad revenue that they can get from all these shows. 263 00:14:34,840 --> 00:14:37,520 Speaker 1: This is premium inventory that they can put through their 264 00:14:37,560 --> 00:14:42,120 Speaker 1: advertising network, UM thirty one billion dollars last year and 265 00:14:42,320 --> 00:14:44,800 Speaker 1: uh so that's that's a really great opportunity for them. 266 00:14:44,960 --> 00:14:48,080 Speaker 1: But also speaking about advertising. That also was a slight 267 00:14:48,160 --> 00:14:52,080 Speaker 1: miss for them this quarter as well. Um, it missed expectations, 268 00:14:52,160 --> 00:14:54,360 Speaker 1: but it kind of goes back to you know, brands 269 00:14:54,360 --> 00:14:57,680 Speaker 1: can't advertise what they don't have, so supply chain also 270 00:14:57,760 --> 00:15:01,400 Speaker 1: impacted advertising, So UM, I don't really saw that our 271 00:15:01,480 --> 00:15:05,680 Speaker 1: business all right, Patty's Melissa Verdick, thank you as always 272 00:15:05,720 --> 00:15:08,120 Speaker 1: for your analysis. There will continue to follow the Amazon 273 00:15:08,200 --> 00:15:19,280 Speaker 1: call as well. Onto more earnings now, and let's take 274 00:15:19,280 --> 00:15:22,080 Speaker 1: a look at Twitter revenue missing analyst estimates. And this 275 00:15:22,160 --> 00:15:25,920 Speaker 1: one of the last earnings reports before Elon Musk plans 276 00:15:25,960 --> 00:15:29,360 Speaker 1: to take over the company. We're seeing a slowdown in advertising. 277 00:15:29,560 --> 00:15:32,040 Speaker 1: Musk has signal he doesn't necessarily want Twitter to rely 278 00:15:32,120 --> 00:15:35,240 Speaker 1: on ads and might prefer a subscription model. Could this 279 00:15:35,480 --> 00:15:38,520 Speaker 1: accelerate that plan? Let's ask our next guest, Scott Kessler, 280 00:15:38,880 --> 00:15:42,080 Speaker 1: global head of technology at Third Bridge, how do you 281 00:15:42,120 --> 00:15:47,080 Speaker 1: think Elon Musk is looking at these ad results? Scott Um, 282 00:15:47,120 --> 00:15:51,520 Speaker 1: thanks a lot, Emily. I think honestly, they're largely in line. 283 00:15:51,600 --> 00:15:54,320 Speaker 1: I think when you see uh the m d AU 284 00:15:54,440 --> 00:15:57,560 Speaker 1: number go up so significantly, I think there are positives 285 00:15:57,600 --> 00:16:01,800 Speaker 1: to take from the results, and I think he's probably 286 00:16:01,840 --> 00:16:04,800 Speaker 1: also reading a lot of the tweets about people suddenly 287 00:16:04,840 --> 00:16:08,280 Speaker 1: gaining a lot more followers, um, and they're obviously constructive 288 00:16:08,320 --> 00:16:12,080 Speaker 1: on that. So let's talk a little bit about then 289 00:16:12,200 --> 00:16:15,240 Speaker 1: the broader ad industry. Clearly we're seeing digital ads take 290 00:16:15,280 --> 00:16:17,120 Speaker 1: a toll. We saw it at Metta, we saw it 291 00:16:17,320 --> 00:16:20,560 Speaker 1: at Snap. You know, how do you expect this to 292 00:16:20,600 --> 00:16:23,000 Speaker 1: play out over the course of the year if the 293 00:16:23,040 --> 00:16:29,240 Speaker 1: macro environment doesn't significantly change. Yeah. Well, what's interesting is historically, 294 00:16:29,680 --> 00:16:34,480 Speaker 1: if you had kind of uh um, challenging economic backdrop, 295 00:16:34,880 --> 00:16:40,040 Speaker 1: it would seem like those areas, including historically digital advertising 296 00:16:40,440 --> 00:16:44,280 Speaker 1: would actually perform better because the thought is that the 297 00:16:44,360 --> 00:16:47,960 Speaker 1: shift over from say, legacy or traditional advertising to digital 298 00:16:48,040 --> 00:16:54,360 Speaker 1: advertising would accelerate given that more challenging backdrop. Now is 299 00:16:54,360 --> 00:16:57,480 Speaker 1: a different time though, however, because of the impact, among 300 00:16:57,520 --> 00:17:00,800 Speaker 1: other things, of id f A, which had a negative 301 00:17:00,800 --> 00:17:06,960 Speaker 1: impact on a lot of digital and social media advertising companies, 302 00:17:07,440 --> 00:17:10,639 Speaker 1: and it's one of the primary reasons that we've seen 303 00:17:11,320 --> 00:17:16,280 Speaker 1: meta platforms struggle so mightily, and people cheered, uh when 304 00:17:16,280 --> 00:17:21,720 Speaker 1: the company generated seven percent revenue growth. So, uh, let's 305 00:17:21,760 --> 00:17:25,040 Speaker 1: talk a little bit about this Elon deal. How bullish 306 00:17:25,119 --> 00:17:28,359 Speaker 1: are you on this? You know, clearly Twitter has a 307 00:17:28,440 --> 00:17:30,480 Speaker 1: lot of potential I think everyone can agree that has 308 00:17:30,520 --> 00:17:33,560 Speaker 1: not necessarily been realized from a business perspective, from a 309 00:17:33,680 --> 00:17:37,159 Speaker 1: user's perspective, from uh an influenced perspective, but you know, 310 00:17:37,359 --> 00:17:40,880 Speaker 1: still very controversial whether or not he's going to be 311 00:17:41,320 --> 00:17:45,200 Speaker 1: good for this platform. Yeah. I mean, look, I think 312 00:17:45,240 --> 00:17:47,320 Speaker 1: one of the things that everyone can agree on, and 313 00:17:47,359 --> 00:17:51,520 Speaker 1: there's a lot of different opinions on this proposed transaction, 314 00:17:51,920 --> 00:17:55,520 Speaker 1: is that if Elon Musk ends up buying Twitter, a 315 00:17:55,560 --> 00:17:58,560 Speaker 1: lot of change is going to come to the company 316 00:17:58,680 --> 00:18:01,520 Speaker 1: and to the platform. Now, whether those changes are going 317 00:18:01,560 --> 00:18:04,520 Speaker 1: to be for the good, for the bad, or otherwise 318 00:18:04,840 --> 00:18:07,600 Speaker 1: remains to be seen. But a lot of us who 319 00:18:07,640 --> 00:18:10,439 Speaker 1: have been using Twitter for a lot of time would 320 00:18:10,480 --> 00:18:13,800 Speaker 1: acknowledge that it's largely the same platform that it was 321 00:18:13,880 --> 00:18:17,040 Speaker 1: ten years ago, and that and of itself, I think 322 00:18:17,440 --> 00:18:21,359 Speaker 1: speaks to some of the issues that people have around Twitter. 323 00:18:21,440 --> 00:18:24,879 Speaker 1: The edit button, for example, that Musk has highlighted in 324 00:18:25,000 --> 00:18:28,080 Speaker 1: some of his tweets. That being said, however, I think 325 00:18:28,080 --> 00:18:32,199 Speaker 1: the reality is that I look at it as you know, 326 00:18:32,400 --> 00:18:37,280 Speaker 1: a pendulum, right that sits between Twitter's focus historically on 327 00:18:37,359 --> 00:18:39,480 Speaker 1: health and safety, at least over the last couple of 328 00:18:39,560 --> 00:18:44,080 Speaker 1: years and Musk's indicated focus on free speech, we've seen 329 00:18:44,080 --> 00:18:47,359 Speaker 1: that pendulum swing quite far to health and safety. Musk 330 00:18:47,440 --> 00:18:50,880 Speaker 1: obviously wants to shift it more uh to free speech. 331 00:18:51,320 --> 00:18:55,639 Speaker 1: What that will do, in effect is render less relevant 332 00:18:55,720 --> 00:18:59,720 Speaker 1: or maybe irrelevant. The notion of content moderation, which Twitter 333 00:19:00,000 --> 00:19:01,800 Speaker 1: and a lot of money on, has a lot of 334 00:19:01,800 --> 00:19:05,440 Speaker 1: employees doing, and that's clearly an area that Musk would 335 00:19:05,520 --> 00:19:09,680 Speaker 1: seemingly look to make cuts to help not only fulfill 336 00:19:09,680 --> 00:19:13,640 Speaker 1: his free speech goal, but also to help preserve and 337 00:19:13,760 --> 00:19:17,879 Speaker 1: grow free cash flow. The Information is reporting that the 338 00:19:17,960 --> 00:19:23,639 Speaker 1: FTC has opened an inquiry into how Musk disclosed his 339 00:19:24,320 --> 00:19:28,800 Speaker 1: Twitter steak and whether or not he followed the rules there. 340 00:19:28,840 --> 00:19:32,080 Speaker 1: What do you make of this and potential regulatory headwinds 341 00:19:32,160 --> 00:19:35,280 Speaker 1: to this deal? Yeah, Look, I think a lot of 342 00:19:35,280 --> 00:19:39,840 Speaker 1: people have been looking for potential hold ups in this transaction, 343 00:19:39,920 --> 00:19:44,080 Speaker 1: especially legal and regulatory ones. Um. Look, I don't know 344 00:19:44,119 --> 00:19:47,960 Speaker 1: the specifics of the inquiry, what exactly they're focused on. Um. 345 00:19:48,080 --> 00:19:50,680 Speaker 1: Musk is no stranger to a lot of these types 346 00:19:50,720 --> 00:19:54,120 Speaker 1: of issues. Um, but he's been able to push through them. 347 00:19:54,160 --> 00:19:57,199 Speaker 1: I can't imagine that those types of issues are going 348 00:19:57,240 --> 00:19:59,600 Speaker 1: to hold up this deal. I think at the end 349 00:19:59,640 --> 00:20:02,320 Speaker 1: of the day, a this really comes down to does 350 00:20:02,440 --> 00:20:07,920 Speaker 1: Elon Musk fall through honest financing and consummate the transaction 351 00:20:08,280 --> 00:20:10,480 Speaker 1: and what happens next? And I frankly think there are 352 00:20:10,480 --> 00:20:13,560 Speaker 1: a lot of questions about the financing and the fall through, 353 00:20:13,760 --> 00:20:16,880 Speaker 1: but in terms of legal and regulatory I don't expect 354 00:20:16,960 --> 00:20:20,760 Speaker 1: that to be the primary impediment for this deal going through. 355 00:20:22,400 --> 00:20:27,000 Speaker 1: All right, Scott Kessler, Third Bridge, Global head of Technology, 356 00:20:27,040 --> 00:20:29,080 Speaker 1: thanks so much for joining us. All of us very 357 00:20:29,080 --> 00:20:33,520 Speaker 1: anxious to see how these how this deal plays out. Meantime, 358 00:20:33,560 --> 00:20:36,080 Speaker 1: Snap is trying to make it even easier to take 359 00:20:36,119 --> 00:20:40,320 Speaker 1: a selfie. The company just unveiled this yellow, square shaped 360 00:20:40,520 --> 00:20:44,880 Speaker 1: flying camera drone called Pixie. Snap c e O Evan 361 00:20:44,880 --> 00:20:47,560 Speaker 1: Spiegel said the inspiration for the Pixie was, quote, what 362 00:20:47,640 --> 00:20:51,919 Speaker 1: would feel like if Tinkerbell were your personal photographer? Well, 363 00:20:52,080 --> 00:20:55,159 Speaker 1: now you can have that personal photographer for two dollars. 364 00:20:55,440 --> 00:20:58,359 Speaker 1: The Pixie is available for pre order only in the 365 00:20:58,480 --> 00:21:02,399 Speaker 1: US and France and is expected to begin shipping next month. 366 00:21:10,440 --> 00:21:13,040 Speaker 1: Welcome back to Bloomberg Technology and Emily Chang in San Francisco. 367 00:21:13,280 --> 00:21:16,880 Speaker 1: Anyone concerned about falling chip demand post pandemic need look 368 00:21:16,960 --> 00:21:20,440 Speaker 1: no further than qual Calm for reassurance, posting better than 369 00:21:20,480 --> 00:21:24,159 Speaker 1: expected earnings and a strong sales forecast. This thanks in 370 00:21:24,280 --> 00:21:27,320 Speaker 1: large part to see On CEO Christiano Almond's plan to 371 00:21:27,320 --> 00:21:32,080 Speaker 1: diversify the company beyond smartphones. Aumon joins me. Now, Cristiano, 372 00:21:32,160 --> 00:21:34,600 Speaker 1: great to have you back with us. You know you 373 00:21:34,680 --> 00:21:37,440 Speaker 1: ended the call by thanking analysts for all the questions 374 00:21:37,440 --> 00:21:40,359 Speaker 1: about phones, but reminded them that qual Calm is so 375 00:21:40,480 --> 00:21:44,399 Speaker 1: much more than a communications chip company. Now, how do 376 00:21:44,440 --> 00:21:48,560 Speaker 1: you see these earnings proving that out look? Uh? First 377 00:21:48,600 --> 00:21:50,960 Speaker 1: of all, great talking to you know, Emily. Uh. And 378 00:21:51,359 --> 00:21:55,080 Speaker 1: strategy is working for the companies. It's it's really working. 379 00:21:55,200 --> 00:21:58,480 Speaker 1: We we are now growing across the whole business in 380 00:21:58,560 --> 00:22:01,160 Speaker 1: a number of different in Mark gets hands, It's yes, 381 00:22:01,240 --> 00:22:03,920 Speaker 1: it's a great story, will continue to be a great story. 382 00:22:03,960 --> 00:22:06,679 Speaker 1: I think we're doing well there. Um, I guess like 383 00:22:06,760 --> 00:22:10,000 Speaker 1: no good did go to goes unpunished as by doing 384 00:22:10,040 --> 00:22:12,680 Speaker 1: well and hance it. So I think we're we get 385 00:22:12,720 --> 00:22:16,080 Speaker 1: all those questions, but the reality is the IoT growth 386 00:22:16,119 --> 00:22:20,960 Speaker 1: has been incredible. We grew sixty um and until we 387 00:22:21,000 --> 00:22:23,960 Speaker 1: added three billion dollars to our design when pipeline within 388 00:22:24,000 --> 00:22:29,240 Speaker 1: the quarter. So the company is truly changing from what 389 00:22:29,520 --> 00:22:34,520 Speaker 1: is perceived to be a communication company for the handsOn market. 390 00:22:34,600 --> 00:22:38,960 Speaker 1: It's really a connected processor company for the intelligent edge. 391 00:22:39,359 --> 00:22:43,080 Speaker 1: And uh, you know, hopefully that message came across. You've 392 00:22:43,080 --> 00:22:46,080 Speaker 1: gotten so many questions over the years about your relationship 393 00:22:46,160 --> 00:22:49,720 Speaker 1: with Apple, including from yours truly, but the call focused 394 00:22:49,720 --> 00:22:53,600 Speaker 1: a lot on Samsung. Is it better for Qualcom to 395 00:22:53,680 --> 00:22:57,840 Speaker 1: have Samsung as a customer a successful customer, as opposed 396 00:22:57,880 --> 00:23:02,000 Speaker 1: to Apple? And if so, why, Well, that's a very 397 00:23:02,080 --> 00:23:04,720 Speaker 1: good question, and I think it goes to the heart 398 00:23:05,040 --> 00:23:09,320 Speaker 1: of our mobile strategy is so, here's the reason we're 399 00:23:09,320 --> 00:23:12,040 Speaker 1: doing so well enhance its and we had the outline 400 00:23:12,040 --> 00:23:15,040 Speaker 1: and the call exactually one of the fastest growing uh 401 00:23:15,080 --> 00:23:18,959 Speaker 1: in a revenue for US and and silicon content and 402 00:23:18,960 --> 00:23:22,360 Speaker 1: and of course earnings is on the processor side. So 403 00:23:23,160 --> 00:23:27,480 Speaker 1: we we put the following strategy in place. We want 404 00:23:27,520 --> 00:23:32,040 Speaker 1: to be synonymous with premium and high tier Android. We 405 00:23:32,400 --> 00:23:35,080 Speaker 1: when when you think about a flagship Android, you think 406 00:23:35,160 --> 00:23:39,720 Speaker 1: Snapdragon and snap Dragon eight. It's really becoming the platform 407 00:23:39,760 --> 00:23:44,000 Speaker 1: of choice across every o EM, from Samsung to Vivo, OPO, 408 00:23:44,080 --> 00:23:48,920 Speaker 1: shall me Huawei honor UH to build their phones UH 409 00:23:48,960 --> 00:23:52,000 Speaker 1: in the flagship category. And what's happening go back to 410 00:23:52,040 --> 00:23:57,600 Speaker 1: your question when we sell, When we sell a snap 411 00:23:57,720 --> 00:24:02,159 Speaker 1: Dragon eight series into a ALEXS twenty two from a 412 00:24:02,320 --> 00:24:08,480 Speaker 1: revenue UH and in an earning standpoint, is probably equivalent 413 00:24:08,600 --> 00:24:13,640 Speaker 1: of selling modems to five iPhones. So it's a great trade. 414 00:24:14,160 --> 00:24:17,160 Speaker 1: So and especially when you look at the decision made 415 00:24:17,160 --> 00:24:19,960 Speaker 1: by Samsung as a result of the strategy of being 416 00:24:20,040 --> 00:24:23,760 Speaker 1: very focused, and the snap Dragon been winning in all categories, 417 00:24:23,800 --> 00:24:26,080 Speaker 1: the best oft smartphone camera in the ward, the highest, 418 00:24:26,119 --> 00:24:31,639 Speaker 1: the XO mark scores the fastest AI, lowest power with 419 00:24:31,640 --> 00:24:37,200 Speaker 1: with a graphics and CPU performance. That is driving the 420 00:24:37,400 --> 00:24:42,600 Speaker 1: shift from four percent to seventy. So Galaxys one, we're 421 00:24:43,520 --> 00:24:47,680 Speaker 1: now we're seventy plus. You know, you've been pretty optimistic 422 00:24:47,720 --> 00:24:50,600 Speaker 1: about supply issues easing through the end of the year. 423 00:24:50,640 --> 00:24:53,240 Speaker 1: And I just got off a call with Apple CEO 424 00:24:53,400 --> 00:24:55,560 Speaker 1: Tim Cook, and here's what he told me about supply 425 00:24:56,080 --> 00:24:58,440 Speaker 1: at least over the last quarter. Said, we did experience 426 00:24:58,520 --> 00:25:02,240 Speaker 1: significant can we it experienced supply constraints, but they were 427 00:25:02,280 --> 00:25:06,160 Speaker 1: significantly lower than what we experienced in the December quarter, 428 00:25:06,280 --> 00:25:08,960 Speaker 1: and they were all silicon shorts related, so that the 429 00:25:09,040 --> 00:25:13,400 Speaker 1: industry wide issue with silicon that affected us on several 430 00:25:13,880 --> 00:25:17,720 Speaker 1: of our products. UM. I didn't get a lot of 431 00:25:17,760 --> 00:25:22,000 Speaker 1: color on supply issues in the current quarter, but you know, 432 00:25:22,000 --> 00:25:25,440 Speaker 1: how would you square that with what you're seeing. Look, 433 00:25:25,480 --> 00:25:29,440 Speaker 1: it's very consistent what what he said. If you remember 434 00:25:29,480 --> 00:25:32,600 Speaker 1: we said that in this year of two thou two 435 00:25:33,000 --> 00:25:36,200 Speaker 1: we expect supply to improve dramatically. That it is true. 436 00:25:36,840 --> 00:25:40,320 Speaker 1: We said that the second half who have a significant 437 00:25:40,320 --> 00:25:43,679 Speaker 1: improvements in supply. That is happening. But having said that, 438 00:25:44,240 --> 00:25:47,679 Speaker 1: would still have more demandant supply. We are now not 439 00:25:47,920 --> 00:25:52,879 Speaker 1: the main constraint or supply constraint. And especially for the 440 00:25:52,960 --> 00:25:57,000 Speaker 1: company which is now part of the digital transformation trans 441 00:25:57,080 --> 00:25:59,399 Speaker 1: they've seen enterprise and that's driving a lot of growth 442 00:25:59,400 --> 00:26:02,240 Speaker 1: in our IoT business. UM in addition to all to 443 00:26:02,440 --> 00:26:06,720 Speaker 1: enhance its now you gave a huge target for revenue 444 00:26:06,720 --> 00:26:09,879 Speaker 1: coming from automotive, sixteen billion dollars, and I'm curious how 445 00:26:09,960 --> 00:26:13,159 Speaker 1: quickly we get to that massive total given where the 446 00:26:13,160 --> 00:26:16,280 Speaker 1: business is today, which is it's growing, but it's still 447 00:26:16,359 --> 00:26:20,440 Speaker 1: relatively small. Yeah. No, it's the way to the way 448 00:26:20,480 --> 00:26:22,639 Speaker 1: to think about automotive, and I think that's the reason 449 00:26:22,960 --> 00:26:26,800 Speaker 1: we provide that metric off the design winds UH that 450 00:26:26,960 --> 00:26:31,280 Speaker 1: we have. We're winning the future, UH, you know, silicon 451 00:26:31,680 --> 00:26:36,400 Speaker 1: in in the automobile industry, we're with twenty six brands. 452 00:26:36,440 --> 00:26:41,080 Speaker 1: Now we see traction with our Snapdragon digital chassis. We're 453 00:26:41,080 --> 00:26:45,479 Speaker 1: winning across digital cockpit, you know, connectivity with the cloud 454 00:26:46,080 --> 00:26:48,440 Speaker 1: and now a death and autonomy. And the way to 455 00:26:48,560 --> 00:26:51,880 Speaker 1: think about it is when we talk about a sixteen 456 00:26:52,280 --> 00:26:56,480 Speaker 1: billion dollars design wing pipeline, you'll think about cars that 457 00:26:56,520 --> 00:27:00,720 Speaker 1: are gonna be launching in the twenty four, twenty something, 458 00:27:00,720 --> 00:27:02,800 Speaker 1: twenty and twenty four all the way to twenty five 459 00:27:02,840 --> 00:27:05,960 Speaker 1: time frame, and then they stay in production for uh 460 00:27:06,119 --> 00:27:10,000 Speaker 1: five to six years. So it's it's it's almost a 461 00:27:10,080 --> 00:27:14,000 Speaker 1: contracted backlog. And we just added three billion to the 462 00:27:14,040 --> 00:27:17,040 Speaker 1: metric used to be thirteen billion dollars. In the quarter 463 00:27:17,280 --> 00:27:20,160 Speaker 1: we had three billion more UH. And one of the 464 00:27:20,200 --> 00:27:24,080 Speaker 1: biggest components of that is our contract with still luntis 465 00:27:25,480 --> 00:27:28,879 Speaker 1: now Qualcom. As you've said, you want Qualcom to be 466 00:27:28,960 --> 00:27:31,600 Speaker 1: judged by well by how well it transforms to a 467 00:27:31,680 --> 00:27:34,720 Speaker 1: company far beyond phones, and we have seen Qualcom take 468 00:27:34,720 --> 00:27:37,520 Speaker 1: a little bit of a beating um along with other 469 00:27:37,600 --> 00:27:40,800 Speaker 1: chip companies, though of course the shares sword today. Is 470 00:27:40,840 --> 00:27:43,639 Speaker 1: there something that you think investors still aren't seeing that 471 00:27:43,720 --> 00:27:48,120 Speaker 1: you want them to see in terms of this broader transition? Oh? Absolutely, 472 00:27:48,960 --> 00:27:50,719 Speaker 1: you know. The way, the way I will answer your 473 00:27:50,840 --> 00:27:55,920 Speaker 1: question is investors have the tendency to just think about 474 00:27:56,440 --> 00:27:58,800 Speaker 1: the handsets and just because we're doing well and hands 475 00:27:58,840 --> 00:28:03,119 Speaker 1: it's we did we to on the market that was 476 00:28:03,320 --> 00:28:07,080 Speaker 1: flat to to a negative bias and we grew in 477 00:28:07,080 --> 00:28:12,120 Speaker 1: the year the border. But uh, the reality is there 478 00:28:12,280 --> 00:28:15,640 Speaker 1: is a broader story with Qualcom, which is our technology 479 00:28:15,800 --> 00:28:19,080 Speaker 1: is going to power those billions of devices that are 480 00:28:19,160 --> 00:28:24,359 Speaker 1: really enabling the cloud economy. And we see that happening 481 00:28:24,440 --> 00:28:27,120 Speaker 1: with the growth rates that we have in our IoT business, 482 00:28:27,280 --> 00:28:32,280 Speaker 1: uh across consumer uh the as networking in enterprise. And 483 00:28:32,440 --> 00:28:35,560 Speaker 1: just as I was watching uh you right before you 484 00:28:35,640 --> 00:28:38,840 Speaker 1: made a comment about the new A drone of Snap 485 00:28:39,320 --> 00:28:43,280 Speaker 1: that's our chip. That's one of our many IoT categories 486 00:28:43,360 --> 00:28:46,400 Speaker 1: that we have. All right, Well, it's great when we 487 00:28:46,440 --> 00:28:49,120 Speaker 1: can hear about your customers that I know for a 488 00:28:49,120 --> 00:28:51,960 Speaker 1: long time you haven't been able to talk about your customers. 489 00:28:51,960 --> 00:28:55,120 Speaker 1: So thanks for some of the specifics there. Calcom CEO 490 00:28:55,240 --> 00:29:00,480 Speaker 1: Cristiano Alman appreciate it. Meantime, Microsoft block Ster deal for 491 00:29:00,520 --> 00:29:03,720 Speaker 1: Activision Blizzard just got a bit closer to reality after 492 00:29:03,760 --> 00:29:07,040 Speaker 1: a shareholder vote. So why is Wall Street betting that 493 00:29:07,120 --> 00:29:11,400 Speaker 1: the merger won't actually happen. Bloomberg's Broody Ford joins US 494 00:29:11,480 --> 00:29:14,280 Speaker 1: now with the latest, Sobrity, give us the broader context here. 495 00:29:14,320 --> 00:29:17,400 Speaker 1: There's there was a shareholder vote. Um, the deal seems 496 00:29:17,440 --> 00:29:22,760 Speaker 1: to be moving forward, but still investors are skeptical. Yeah, exactly, 497 00:29:22,920 --> 00:29:26,440 Speaker 1: so the shareholders voted to advance the deal today. It's 498 00:29:26,440 --> 00:29:29,560 Speaker 1: an important step that had to happen. Um, but all 499 00:29:29,640 --> 00:29:33,720 Speaker 1: together not too surprising. So all eyes now are on 500 00:29:33,760 --> 00:29:36,040 Speaker 1: what the regulators do. I mean, this deal has a 501 00:29:36,040 --> 00:29:38,280 Speaker 1: little over a year from now to close, and it 502 00:29:38,360 --> 00:29:42,479 Speaker 1: has to clear through the US, the EU, China, Um, 503 00:29:42,520 --> 00:29:45,640 Speaker 1: I think Brad Smith or Microsoft's at a seventeen countries 504 00:29:45,640 --> 00:29:47,560 Speaker 1: that has to pass through. But I mean really, all 505 00:29:47,560 --> 00:29:51,160 Speaker 1: eyes are on the US competition enforces here and whether 506 00:29:51,240 --> 00:29:53,600 Speaker 1: or not they will move to try to block this 507 00:29:53,640 --> 00:29:59,360 Speaker 1: deal on anti competitive grounds. So what's the likelihood that happens? Yeah, well, 508 00:30:00,000 --> 00:30:04,240 Speaker 1: Ill Street saying that in there in the metric, it 509 00:30:04,360 --> 00:30:08,440 Speaker 1: is three times more likely for a Microsoft Activision deal 510 00:30:08,480 --> 00:30:11,480 Speaker 1: to fall apart than Twitter. UM. So right now, let's 511 00:30:11,480 --> 00:30:14,240 Speaker 1: say you own Activision stock, you will get paid ninety 512 00:30:14,840 --> 00:30:17,440 Speaker 1: if this deal closes. Right now, it's trading in about 513 00:30:17,480 --> 00:30:21,040 Speaker 1: the mid seventies, meaning that you know, people are seeing 514 00:30:21,040 --> 00:30:23,640 Speaker 1: a decent chance that this does not go as planned. UM. 515 00:30:23,640 --> 00:30:26,800 Speaker 1: And that could be either that the FTC sues and 516 00:30:26,840 --> 00:30:30,080 Speaker 1: successfully blocks it in court, or that you know, it 517 00:30:30,080 --> 00:30:33,160 Speaker 1: gets tied up in litigation so long that other reasons 518 00:30:33,200 --> 00:30:35,280 Speaker 1: can creep in that can make the deal fall apart. 519 00:30:37,000 --> 00:30:39,640 Speaker 1: So what are the odds What are the odds of 520 00:30:39,680 --> 00:30:42,360 Speaker 1: deal falls apart? Well, it's really hard to say, right. 521 00:30:42,440 --> 00:30:45,960 Speaker 1: I mean, so the for decades mergers in the US 522 00:30:46,000 --> 00:30:47,920 Speaker 1: were very much just kind of allowed to go through 523 00:30:48,040 --> 00:30:51,800 Speaker 1: is pretty hands off. But agency leaders right now have 524 00:30:52,080 --> 00:30:55,520 Speaker 1: said that big tech companies should not be allowed to 525 00:30:55,640 --> 00:31:00,280 Speaker 1: grow via acquisition. UM. Microsoft has very good reputation should 526 00:31:00,320 --> 00:31:03,200 Speaker 1: in DC, It's escaped a lot of the tech lash. 527 00:31:03,280 --> 00:31:06,800 Speaker 1: That being said, you know, it still is the number 528 00:31:06,840 --> 00:31:09,400 Speaker 1: two company in the country. So the idea is that 529 00:31:09,800 --> 00:31:12,440 Speaker 1: they are really looking for a way to get their 530 00:31:12,440 --> 00:31:15,280 Speaker 1: hands dirty and maybe have some new court precedents about 531 00:31:15,400 --> 00:31:17,800 Speaker 1: big tech mergers. And this could be the case, why 532 00:31:17,800 --> 00:31:19,640 Speaker 1: they or not it works. You know, we'll see, but 533 00:31:20,080 --> 00:31:22,640 Speaker 1: a lot of people think it could happen. All right, 534 00:31:22,920 --> 00:31:25,920 Speaker 1: bloomberks broty for it, Thank you, thanks much. Coming up 535 00:31:26,000 --> 00:31:28,560 Speaker 1: robin Hood dirting is also out and the online brokerage continually. 536 00:31:28,600 --> 00:31:32,800 Speaker 1: It's for into crypto listing more cryptocurrencies like Salana. Our 537 00:31:32,840 --> 00:31:35,640 Speaker 1: Crypto report coming up next with that conference in the 538 00:31:35,640 --> 00:31:42,680 Speaker 1: Bahamas still underway. Is the need of the community dictates 539 00:31:42,720 --> 00:31:45,560 Speaker 1: the development of the protocol because the protocol is owned 540 00:31:45,720 --> 00:31:47,960 Speaker 1: by the community. A lot of the work that Salona 541 00:31:48,040 --> 00:31:49,480 Speaker 1: Labs does and a lot of the work the Salanta 542 00:31:49,520 --> 00:31:53,160 Speaker 1: Foundation funds is around building primitives that are open source, 543 00:31:53,200 --> 00:31:55,920 Speaker 1: that can be taken by anyone and turned into amazing 544 00:31:55,960 --> 00:32:11,239 Speaker 1: products built on the Salana blockchain. It time for our 545 00:32:11,240 --> 00:32:13,720 Speaker 1: crypto report now and robin Hood just reporting their results 546 00:32:13,720 --> 00:32:16,360 Speaker 1: that as it aims to become a bigger player in crypto. 547 00:32:17,200 --> 00:32:21,200 Speaker 1: Here to break it all down, Bloomberg's own Annie Massa, Annie, 548 00:32:21,240 --> 00:32:24,400 Speaker 1: what are the headline takeaways from these results? This was 549 00:32:24,440 --> 00:32:26,960 Speaker 1: a really difficult quarter for robin Hood, and it was 550 00:32:27,000 --> 00:32:30,040 Speaker 1: always going to be a stark comparison between this first 551 00:32:30,080 --> 00:32:32,360 Speaker 1: quarter and last first quarter when we saw the huge 552 00:32:32,480 --> 00:32:35,440 Speaker 1: run up in game Stop and other memestocks, but it 553 00:32:35,520 --> 00:32:39,600 Speaker 1: was worse than analysts anticipated. We saw losses across all 554 00:32:39,760 --> 00:32:44,920 Speaker 1: kinds of product categories, transaction revenue sliding, and revenue and 555 00:32:45,000 --> 00:32:49,600 Speaker 1: earnings both missing Wall Streets estimates. So let's talk about 556 00:32:49,760 --> 00:32:53,760 Speaker 1: how they're trying to grow their crypto play and influence 557 00:32:54,240 --> 00:32:57,080 Speaker 1: in the crypto market as the company you know, faces 558 00:32:57,120 --> 00:32:59,680 Speaker 1: some you know, big challenges up ahead. I mean they're 559 00:32:59,680 --> 00:33:03,719 Speaker 1: going through some pretty big job cuts and the stack 560 00:33:04,280 --> 00:33:07,680 Speaker 1: way down. That's right. The stock has really plummeted since 561 00:33:07,720 --> 00:33:10,600 Speaker 1: the I p O. The central struggle that robin Hood 562 00:33:10,640 --> 00:33:13,600 Speaker 1: is dealing with right now is this question of whether 563 00:33:13,680 --> 00:33:17,200 Speaker 1: it can actually get users involved in more than trading 564 00:33:17,240 --> 00:33:20,000 Speaker 1: on its platform. And in the meantime, it's trying to 565 00:33:20,080 --> 00:33:23,640 Speaker 1: keep up with with investors and go where they're going. 566 00:33:23,800 --> 00:33:27,000 Speaker 1: So on the crypto side, for instance, it's introduced some 567 00:33:27,080 --> 00:33:32,400 Speaker 1: new tokens, including the long anticipated Shiba knew coin, and 568 00:33:32,480 --> 00:33:35,160 Speaker 1: that was a recent development. So so robin hood is 569 00:33:35,200 --> 00:33:37,880 Speaker 1: introducing some new products to trade and at the same 570 00:33:37,920 --> 00:33:41,720 Speaker 1: time trying to grow the types of products that it 571 00:33:42,120 --> 00:33:46,000 Speaker 1: offers to investors in areas like retirement accounts. It added 572 00:33:46,040 --> 00:33:48,760 Speaker 1: crypto wallets, So it's offering all these new products as well. 573 00:33:49,800 --> 00:33:52,760 Speaker 1: So what are you looking for here next? How do 574 00:33:52,800 --> 00:33:56,440 Speaker 1: you expect robin Hood to navigate these challenges? You know, 575 00:33:56,520 --> 00:34:02,080 Speaker 1: well Street Darling often very controverse deal. But but now 576 00:34:02,200 --> 00:34:04,880 Speaker 1: a year into being a public company, a lot of 577 00:34:04,920 --> 00:34:09,200 Speaker 1: big kind of existential issues. It is an existential issue, 578 00:34:09,239 --> 00:34:12,000 Speaker 1: and I think that's something investors will be watching closely 579 00:34:12,120 --> 00:34:14,759 Speaker 1: whether robin Hood can deliver on this message that it has, 580 00:34:15,040 --> 00:34:18,600 Speaker 1: that it can expand with its users, grow with its users, 581 00:34:18,840 --> 00:34:22,680 Speaker 1: and and touch more parts of their financial lives. So far, 582 00:34:22,760 --> 00:34:26,719 Speaker 1: transaction revenues are still the core driver of revenues at 583 00:34:26,719 --> 00:34:29,800 Speaker 1: this company, and it remains to be seen whether customers 584 00:34:29,840 --> 00:34:32,600 Speaker 1: will go to robin Hood for other types of products 585 00:34:32,640 --> 00:34:35,120 Speaker 1: as well. They certainly are going to trade, but the 586 00:34:35,160 --> 00:34:38,040 Speaker 1: issue that robin Hood's facing is that trading activity is 587 00:34:38,080 --> 00:34:40,840 Speaker 1: coming way down from where it was during the pandemic. 588 00:34:41,920 --> 00:34:43,120 Speaker 1: How much do you think that has to do with 589 00:34:43,160 --> 00:34:46,480 Speaker 1: the macro environment, I mean inflation, rising gas prices, not 590 00:34:46,560 --> 00:34:48,920 Speaker 1: a lot of not a lot of money to be 591 00:34:48,960 --> 00:34:52,920 Speaker 1: spending right now on discretionary items like new equities and crypto. 592 00:34:53,360 --> 00:34:56,960 Speaker 1: That's a great point that was something that the management 593 00:34:57,080 --> 00:35:00,480 Speaker 1: addressed in both the earnings call and a call with quarters. 594 00:35:00,840 --> 00:35:03,600 Speaker 1: They said, listen, robin Hood has been a company that's 595 00:35:03,680 --> 00:35:06,640 Speaker 1: mostly operated in an environment for much of its history 596 00:35:06,920 --> 00:35:10,680 Speaker 1: where inflation has been low, interest rates have been low, 597 00:35:10,760 --> 00:35:14,600 Speaker 1: and now we're starting to see inflation, uh, come way 598 00:35:14,640 --> 00:35:18,000 Speaker 1: back and the Federal Reserve trying to curb that. So 599 00:35:18,280 --> 00:35:20,520 Speaker 1: the issue for robin Hood is can it weather that 600 00:35:20,680 --> 00:35:24,080 Speaker 1: storm if people do lose interest in putting their discretionary 601 00:35:24,120 --> 00:35:28,680 Speaker 1: income towards trading. All right, we'll continue to follow that story. 602 00:35:28,719 --> 00:35:30,920 Speaker 1: Blue marx Any Massa, who covers robin Hood for us. 603 00:35:31,000 --> 00:35:41,839 Speaker 1: Thank you. Let's wrap up now by taking another look 604 00:35:41,840 --> 00:35:44,759 Speaker 1: at Apple's results. Dan Ives of web Bush Securities here, Dan, 605 00:35:44,800 --> 00:35:47,319 Speaker 1: you've been listening in on the call. What are your 606 00:35:47,400 --> 00:35:50,840 Speaker 1: what are your headline takeaways? Obviously an impressive quarter Apple 607 00:35:50,880 --> 00:35:58,000 Speaker 1: weathering supply shortages, weathering inflation with some record results. Yeah. Look, 608 00:35:58,080 --> 00:36:02,440 Speaker 1: I didn't get to tell two cities. Demand story remains robust. 609 00:36:02,920 --> 00:36:06,120 Speaker 1: I think demand out stripping supply by about ten million 610 00:36:06,200 --> 00:36:10,160 Speaker 1: iPhone units. But he talked about supply chain. That's the 611 00:36:10,280 --> 00:36:12,840 Speaker 1: big part of the call. It looks like four to 612 00:36:12,920 --> 00:36:15,920 Speaker 1: eight billion terms of a headwind book. I believe the 613 00:36:16,000 --> 00:36:18,920 Speaker 1: street the knee jerk is down in terms of the stock, 614 00:36:19,280 --> 00:36:22,000 Speaker 1: but I believe what they're gonna start to look on 615 00:36:22,080 --> 00:36:25,040 Speaker 1: the other side of it's in a normalized an environment. 616 00:36:25,520 --> 00:36:28,000 Speaker 1: That's really really the streets focused on, even though these 617 00:36:28,000 --> 00:36:33,000 Speaker 1: supply chain issues in China clearly ahead wind. I spoke 618 00:36:33,040 --> 00:36:35,520 Speaker 1: to Apple CEO Tim Cook, and he talked about the 619 00:36:35,560 --> 00:36:37,960 Speaker 1: supply shortages, double down on the fact that this was 620 00:36:37,960 --> 00:36:40,160 Speaker 1: a record quarter and that they grew in every category 621 00:36:40,239 --> 00:36:45,320 Speaker 1: except for iPad, where they had the most significant supply constraints. 622 00:36:45,360 --> 00:36:48,920 Speaker 1: He explained they really had to do with silicon. And 623 00:36:48,960 --> 00:36:52,319 Speaker 1: we're hearing uh Lucamya Street, the CFO of Apple, double 624 00:36:52,400 --> 00:36:55,719 Speaker 1: down on that on the call right now. Um, and 625 00:36:55,760 --> 00:36:58,400 Speaker 1: these are silicon constraints they're saying that go beyond the 626 00:36:58,440 --> 00:37:01,799 Speaker 1: shutdowns in China. How do you expect Apple to continue 627 00:37:02,360 --> 00:37:06,680 Speaker 1: to navigate that in an ongoing you know, COVID lockdown, 628 00:37:08,320 --> 00:37:12,080 Speaker 1: You know, no doubt with China, it's on two parts, right, 629 00:37:12,280 --> 00:37:17,000 Speaker 1: demand as well as supply. Key part of the China story. Look, 630 00:37:17,000 --> 00:37:19,480 Speaker 1: if it's going to happen read happened the June quarter, 631 00:37:19,760 --> 00:37:23,200 Speaker 1: because ultimately this is all the build up to iPhone fourteen, 632 00:37:23,680 --> 00:37:25,720 Speaker 1: which will be in September. And if you look at Apple, 633 00:37:25,719 --> 00:37:28,200 Speaker 1: if you look at the demand trends that we're seeing, 634 00:37:28,560 --> 00:37:32,880 Speaker 1: and it's important demands not softened. So I also believe 635 00:37:32,960 --> 00:37:37,279 Speaker 1: they'll ultimately be able to push the price increases that 636 00:37:37,360 --> 00:37:39,920 Speaker 1: we see over the coming called six months on the 637 00:37:40,000 --> 00:37:44,160 Speaker 1: next iPhone three two consumers. And that's why it's one 638 00:37:44,320 --> 00:37:47,840 Speaker 1: The supply chain issues are well known, but the demand 639 00:37:47,880 --> 00:37:50,960 Speaker 1: stories what investors are really looking at to see if 640 00:37:51,000 --> 00:37:54,400 Speaker 1: there's any cracks from the armor, and Emily, we're not 641 00:37:54,440 --> 00:37:57,080 Speaker 1: seeing them. What is't you a huge reaction in the 642 00:37:57,120 --> 00:37:59,200 Speaker 1: stock And I wonder why that is because it certainly 643 00:37:59,200 --> 00:38:05,160 Speaker 1: seems like App well is uh fairly well insulated from 644 00:38:05,200 --> 00:38:08,360 Speaker 1: the macro economic issues that other tech companies are facing. 645 00:38:08,400 --> 00:38:10,839 Speaker 1: Obviously we're seeing, you know, a big hit to digital 646 00:38:10,920 --> 00:38:14,280 Speaker 1: advertising which not only affected Alphabet on YouTube, but Meta 647 00:38:14,560 --> 00:38:18,319 Speaker 1: and Twitter and also impact on consumer demand. Given these 648 00:38:18,320 --> 00:38:23,880 Speaker 1: sluggish results from Amazon, you know, is Apple different? I 649 00:38:23,920 --> 00:38:26,440 Speaker 1: think there are different and I think what we're seeing 650 00:38:26,520 --> 00:38:32,919 Speaker 1: in tact, there's a narrative that's emerging. Enterprise is strong. Microsoft, 651 00:38:33,400 --> 00:38:37,160 Speaker 1: I think cybersecurity cloud even at the Google parton of cloud, 652 00:38:37,160 --> 00:38:40,040 Speaker 1: and so has Amazon. And you look at Apple more 653 00:38:40,160 --> 00:38:45,600 Speaker 1: tetarn like because this hand up demand cycle for iPhone, 654 00:38:45,600 --> 00:38:49,720 Speaker 1: which I think continues into next year, is underestimated, along 655 00:38:49,760 --> 00:38:53,759 Speaker 1: with on the services side, services beat the whisper. So 656 00:38:53,960 --> 00:38:58,000 Speaker 1: that's really the story that's emerging here that Apple continues 657 00:38:58,120 --> 00:39:03,359 Speaker 1: despite everything. We're seeing demand now strip supply Now, Dan, 658 00:39:03,480 --> 00:39:08,439 Speaker 1: we're getting some new details on Elon Musk's pitch when 659 00:39:08,480 --> 00:39:12,200 Speaker 1: he when he made a pitch to buy Twitter, that 660 00:39:12,480 --> 00:39:16,880 Speaker 1: his pitch featured job cuts and other ways to make money. 661 00:39:17,120 --> 00:39:19,760 Speaker 1: I mean certainly hinted at, you know, wanting to potentially 662 00:39:19,800 --> 00:39:24,640 Speaker 1: move away from advertising, being more interested in a subscription model. 663 00:39:24,800 --> 00:39:27,680 Speaker 1: But his pitch does focus on, you know, turning it 664 00:39:27,719 --> 00:39:33,040 Speaker 1: into a more profitable business, boosting cash flow, monetizing the platform. 665 00:39:33,200 --> 00:39:35,480 Speaker 1: He also brought up his his track record at Tesla 666 00:39:35,480 --> 00:39:38,960 Speaker 1: and spacek Space access proofs his success. What do you 667 00:39:39,000 --> 00:39:43,799 Speaker 1: make of that, Okay, I think from a business model perspective, 668 00:39:43,960 --> 00:39:46,680 Speaker 1: I believe it goes to a paid subscription model. I 669 00:39:46,719 --> 00:39:49,560 Speaker 1: think they'll have a free piece, but ultimately that's probably 670 00:39:49,880 --> 00:39:52,799 Speaker 1: a key part of the strategy going forward. And in 671 00:39:52,880 --> 00:39:54,600 Speaker 1: terms of some of the job cuts with some of 672 00:39:54,640 --> 00:39:58,000 Speaker 1: the cost cutting. I mean, look, this is essentially whoeveraged 673 00:39:58,000 --> 00:40:01,360 Speaker 1: buy out the only given to averaging Testla shares to 674 00:40:01,480 --> 00:40:04,560 Speaker 1: do it. So it's going to create some more uncertainty 675 00:40:04,600 --> 00:40:08,200 Speaker 1: going forward. It's still a long time till this closes. 676 00:40:08,640 --> 00:40:12,160 Speaker 1: But that's why right now for Musk, the easy part 677 00:40:12,600 --> 00:40:16,960 Speaker 1: relatively with buying Twitter, the hard part is going to 678 00:40:17,040 --> 00:40:20,120 Speaker 1: be fixing it. Can you do it? Do you think 679 00:40:20,160 --> 00:40:23,440 Speaker 1: you Musk can do it? Look, I believe it's another 680 00:40:23,480 --> 00:40:26,719 Speaker 1: It's a whole another animal than a Testa, a space X, 681 00:40:26,920 --> 00:40:30,799 Speaker 1: not technology. We're talking on social media. It's been an 682 00:40:30,920 --> 00:40:34,760 Speaker 1: uphill battle for the last decade and I continue to believe. 683 00:40:34,840 --> 00:40:37,799 Speaker 1: I think Tessa Sheryld has believe this is that this 684 00:40:37,880 --> 00:40:42,160 Speaker 1: isn't going to be a hrculean R challenge from Musk, 685 00:40:42,760 --> 00:40:45,120 Speaker 1: and I think that's why you're seeing the overhang on 686 00:40:45,160 --> 00:40:50,160 Speaker 1: Tesla shares because you essentially leverage the position in Testa 687 00:40:50,200 --> 00:40:53,200 Speaker 1: to buy Twitter and ultimately test A share olders that 688 00:40:53,239 --> 00:40:57,120 Speaker 1: are stealing the brunt of this, you know, soap opera 689 00:40:57,160 --> 00:41:01,839 Speaker 1: playing out soap opera and need Dan Ives of wed 690 00:41:01,880 --> 00:41:05,759 Speaker 1: Bush Securities, Thanks so much for your insights. There will 691 00:41:05,760 --> 00:41:07,920 Speaker 1: continue to watch what happens with Twitter. Of course, we'll 692 00:41:07,960 --> 00:41:11,200 Speaker 1: be continuing to follow along the latest on Apple and 693 00:41:11,400 --> 00:41:13,880 Speaker 1: Amazon results. And that does it for this edition of 694 00:41:14,040 --> 00:41:17,520 Speaker 1: Bloomberg Technology. Before we go, I just want to say 695 00:41:17,520 --> 00:41:21,920 Speaker 1: a special goodbye to a very special person on our 696 00:41:21,960 --> 00:41:25,440 Speaker 1: Bloomberg team, Mallory Abelhausen, who has been here running the 697 00:41:25,480 --> 00:41:29,720 Speaker 1: show on the floor of Bloomberg Technology for ten years. 698 00:41:30,680 --> 00:41:33,080 Speaker 1: Ten years, so almost as long as I have. She 699 00:41:33,239 --> 00:41:36,080 Speaker 1: is moving on to her next adventure, moving to New York, 700 00:41:36,120 --> 00:41:38,120 Speaker 1: Bloomberg in New York. She's not leaving the Bloomberg family. 701 00:41:38,120 --> 00:41:40,680 Speaker 1: And we're so so grateful for all of the time 702 00:41:40,760 --> 00:41:42,680 Speaker 1: you have spent with us, and the energy and love 703 00:41:42,680 --> 00:41:44,520 Speaker 1: and heart that you bring to this show and helping 704 00:41:44,560 --> 00:41:46,880 Speaker 1: me us put a show on from my basement for 705 00:41:46,920 --> 00:41:49,920 Speaker 1: eighteen months in a pandemic um. You will be missed 706 00:41:50,160 --> 00:41:52,839 Speaker 1: and we wish you love I love you too. All Right, 707 00:41:53,000 --> 00:41:55,520 Speaker 1: that does it for the show. We'll be back tomorrow. 708 00:41:55,600 --> 00:42:00,359 Speaker 1: I'm Emily checking in San Francisco. This is Bloomberg Op