WEBVTT - Chips Stocks Still Down and Tech Earnings Preview 0:00:02.240 --> 0:00:05.480 From the heart of where innovation, money and power COLLI 0:00:06.360 --> 0:00:10.880 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.920 --> 0:00:27.000 Emily Jay. I'm Emily Check in San Francisco, and this 0:00:27.000 --> 0:00:29.360 is Bloomberg Technology. Coming up in the next hour. The 0:00:29.520 --> 0:00:33.280 chips are down. Shares of semi conductor companies plunging to 0:00:33.280 --> 0:00:36.680 start the week after new US curbs on China's access 0:00:36.680 --> 0:00:40.879 to American technology. Where is the industry's downturn headed We 0:00:41.159 --> 0:00:45.000 will discuss. Plus, it's not just chip stocks at risk. 0:00:45.159 --> 0:00:47.040 Both the I m F and the World Bank are 0:00:47.040 --> 0:00:50.920 warning of a potential global recession. This as tech earnings 0:00:51.000 --> 0:00:54.120 kick off next week, We're gonna preview what to expect, 0:00:55.280 --> 0:00:58.160 and the markets are spoken about the Twitter deal as well. 0:00:58.240 --> 0:01:01.640 Investors seem to see about a six chance that Elon 0:01:01.720 --> 0:01:05.559 Musk still closes by October. What will become the social 0:01:05.560 --> 0:01:09.199 media platform once that happens. We will explore that this hour. 0:01:09.480 --> 0:01:10.920 All that in a moment, but first I want to 0:01:10.920 --> 0:01:14.559 stick to the chip story. Now, chip stocks down their 0:01:14.600 --> 0:01:19.160 lowest since joining US. Now wugin Hoe Boomberg Intelligence, Senior 0:01:19.160 --> 0:01:24.200 analyst for Hardware and Networking, So a disappointing start Wuginhoe 0:01:24.560 --> 0:01:27.640 ahead of you know what could be a potentially difficult 0:01:27.880 --> 0:01:30.400 earning season. We've already already had these warnings from A 0:01:30.560 --> 0:01:34.880 m D and from Samsung. Where is this going? Sure? 0:01:35.000 --> 0:01:37.880 I thank thanks simily so so UM. I think the 0:01:37.959 --> 0:01:39.880 A m D as well as the stamp sub warnings 0:01:40.400 --> 0:01:43.360 UH is a precursor to what we may potentially see 0:01:43.360 --> 0:01:46.280 for earning season. For the upcoming earning season, I think 0:01:46.280 --> 0:01:48.440 that the risk here is is not on the consumer side. 0:01:48.480 --> 0:01:51.960 I think the consumer concerns on the PC side UM 0:01:52.000 --> 0:01:54.680 has already been factored in. I think the bigger risk 0:01:54.720 --> 0:01:58.240 going through into earning season is this going to affect 0:01:58.280 --> 0:02:01.920 the enterprise side on this chip side. We haven't seen 0:02:02.000 --> 0:02:04.560 that yet, but if we look at the m D 0:02:05.080 --> 0:02:08.000 data center numbers, they weren't as strong as people as hoped. 0:02:08.160 --> 0:02:10.840 They were more in line than anything else. And and 0:02:10.880 --> 0:02:13.359 the concern is that it's going to affect more chip 0:02:13.400 --> 0:02:17.079 makers on the data center in cloud side. So is 0:02:17.160 --> 0:02:19.639 the chip downturn far from over? I mean, is it 0:02:19.760 --> 0:02:23.359 just starting? But it potentially could be. Right if we 0:02:23.400 --> 0:02:27.400 start thinking about enterprise bending going going forward, UH, if 0:02:27.400 --> 0:02:30.919 there is a downturn going to three, then then there 0:02:31.040 --> 0:02:34.480 is that risk of downward learnings revisions to reflect the 0:02:34.520 --> 0:02:39.200 weakness on the enterprise side of the ledger. Right, UM, 0:02:39.320 --> 0:02:41.440 I still don't have a good crystal ball on where 0:02:41.520 --> 0:02:44.160 the PC sector is going to bottom out, and I 0:02:44.200 --> 0:02:48.040 think we're gonna have to start seeing, uh where the 0:02:48.040 --> 0:02:52.160 the enterprise side is gonna flesh out as well. Now, 0:02:52.240 --> 0:02:55.440 of course, these you know, new round of of American 0:02:55.480 --> 0:03:01.240 curves on China's access to US technology. How that, um, 0:03:01.280 --> 0:03:06.000 you know, potentially make a bad situation worse and and 0:03:06.200 --> 0:03:09.080 how does that play out over the longer term. Sure, 0:03:09.160 --> 0:03:11.160 I don't think it's going to be a near term 0:03:11.240 --> 0:03:14.000 impact if if anything, it's gonna be a longer term impact. 0:03:14.240 --> 0:03:17.280 The band or the curbs on the AI side. Isn't 0:03:17.280 --> 0:03:19.639 there anything new? This is something that m D as 0:03:19.639 --> 0:03:22.840 well as in video hinted at at one of the 0:03:22.919 --> 0:03:26.320 a K filings U back in September. And this makes 0:03:26.360 --> 0:03:28.400 it more official than anything else. And I believe I 0:03:28.440 --> 0:03:30.680 am D as well as in video said the impact 0:03:30.720 --> 0:03:34.400 will be minimal because they could still sell lesser um 0:03:35.160 --> 0:03:39.080 lesser powered AI chips to to China. Now, now that 0:03:39.160 --> 0:03:41.760 being said, I do think that the the U S 0:03:41.800 --> 0:03:45.520 do does want to send in broader curbs UH to 0:03:45.880 --> 0:03:51.320 slow down China's development of not only the use of 0:03:51.360 --> 0:03:54.240 AI chips, but also the manufacturer of AI chips. There 0:03:54.240 --> 0:03:58.480 were some developments by by Smike of introducing seven animator chips. 0:03:58.600 --> 0:04:01.120 I think that put a scare UH and into the 0:04:01.200 --> 0:04:03.520 US and they want to slow down anything that China 0:04:03.560 --> 0:04:07.960 can do to develop some of these higher powered UH 0:04:08.080 --> 0:04:12.280 chips going forward. So it doesn't sound like you think 0:04:12.280 --> 0:04:14.680 we're heading towards a total ban, but you know, is 0:04:14.720 --> 0:04:20.120 that a possibility. Well, let's let's use UM. Well, let's 0:04:20.160 --> 0:04:23.840 use whahwah as an example of as well as et EU. 0:04:23.960 --> 0:04:27.640 There is an entity list that they're on UH and UM. 0:04:28.240 --> 0:04:30.360 At the end of the day, whilwah is a smart 0:04:30.360 --> 0:04:34.680 phone business. Essentially has UM pretty much died, all right? 0:04:35.400 --> 0:04:38.280 If if there there is a an entity list that 0:04:38.360 --> 0:04:42.520 the US has started to beef up and we might 0:04:42.560 --> 0:04:46.200 start seeing H some of these lesser known Chinese memory 0:04:46.200 --> 0:04:50.000 companies as well as chip manufacturing companies UH fall into 0:04:50.040 --> 0:04:53.240 that entity. If that's going to be the case, then 0:04:53.680 --> 0:04:57.520 then there might be a dent into the China China's 0:04:57.600 --> 0:05:03.119 chip manufacturing UH initiatives going forward. So I mean, we'll case, 0:05:03.279 --> 0:05:05.560 we still have to see where this will go, but 0:05:05.920 --> 0:05:09.400 that still may happen. All right, Well, a lot of 0:05:09.480 --> 0:05:11.839 rad for chips to start the week. U Jin Hobe, 0:05:11.839 --> 0:05:16.279 Bloomberg Intelligence senior analysts, thank you so much for stopping by. Now. 0:05:16.360 --> 0:05:19.320 Speaking of China, we're following the COVID situation there as well, 0:05:20.120 --> 0:05:24.360 tally's rising and fears of a potential lockdown returning once again. 0:05:24.480 --> 0:05:29.040 The country reported one thousand, eight hight seven cases for Sunday, 0:05:29.200 --> 0:05:32.560 the highest since August. In Shanghai posted the most new 0:05:32.560 --> 0:05:36.360 local infections in almost three months, official saying anyone traveling 0:05:36.400 --> 0:05:40.039 to Shanghai will need a negative COVID result within twenty 0:05:40.040 --> 0:05:42.200 four hours of arriving in the city, and we'll have 0:05:42.240 --> 0:05:48.440 to do three tests in three days. Coming up a 0:05:48.480 --> 0:05:51.400 bit more than a coin tossed Cowan analysts pricing in 0:05:51.440 --> 0:05:54.680 a sixt chance that Ellen Musk's deal with Twitter gets 0:05:54.680 --> 0:05:57.640 done by the deadline. We're gonna dig into the odds next. 0:05:57.880 --> 0:06:10.680 This is Bloomberg. The glimpses we've had of Elon Mask's 0:06:10.720 --> 0:06:13.120 vision for Twitter include potentially becoming part of what he 0:06:13.200 --> 0:06:16.680 calls X the Everything app, which brings to mind the 0:06:16.800 --> 0:06:20.200 Chinese app we Chat. Quick takes out were talked to 0:06:20.320 --> 0:06:23.520 us about the obstacles Twitter will face if it tries 0:06:23.560 --> 0:06:28.360 to become while like we Chat. Take a listen. Elon 0:06:28.440 --> 0:06:31.920 Musks billion dollar deal to buy Twitter is back on 0:06:32.000 --> 0:06:35.279 and it comes with an interesting wrinkle, turning the social 0:06:35.320 --> 0:06:38.160 media company into a so called super app. Now, this 0:06:38.200 --> 0:06:41.640 is what the Chinese company we Chat has really pioneered. 0:06:41.880 --> 0:06:45.320 It's a portal in China for everything from dating apps 0:06:45.360 --> 0:06:49.880 to paying your bills, ordering food and getting taxis. But 0:06:49.960 --> 0:06:53.320 it hasn't really succeeded in Europe and the US, and 0:06:53.360 --> 0:06:56.719 there are often three obstacles. Firstly, you need to have 0:06:56.760 --> 0:06:59.839 a payment layer, something that connects all of the apps 0:06:59.839 --> 0:07:04.240 together and makes it easy to pay in one quick action. Secondly, 0:07:04.320 --> 0:07:06.760 you need to have a lot of developers. Twitter has 0:07:06.760 --> 0:07:09.680 about two million users, but there are about one point 0:07:09.680 --> 0:07:12.960 eight billion active users of Apple devices and three billion 0:07:12.960 --> 0:07:16.000 active users of Android devices. If you're a developer or 0:07:16.000 --> 0:07:18.760 a company looking to build a product, it's pretty clear 0:07:19.120 --> 0:07:23.160 which of those three services you're likely to prioritize. And finally, 0:07:23.240 --> 0:07:27.040 there is the regulatory consideration. If you are a company 0:07:27.080 --> 0:07:29.720 that leverages its strength in one service, to build strength 0:07:29.760 --> 0:07:32.360 in a different one. That is not something that regulators, 0:07:32.400 --> 0:07:35.480 particularly in Europe, look too kindly upon. But it also 0:07:35.520 --> 0:07:38.600 comes with a slight problem. Either you are not big 0:07:38.680 --> 0:07:40.920 enough for developers to have the scale that they want 0:07:40.960 --> 0:07:43.960 to build apps and services for your product, or if 0:07:43.960 --> 0:07:46.240 you do have the scale, you're going to attract that 0:07:46.320 --> 0:07:49.080 regulatory attention. Perhaps Ellen is the person who can make 0:07:49.120 --> 0:07:52.040 this happen, but it does come with a lot of obstacles. 0:07:54.480 --> 0:07:58.960 Cutics alex Web, they're sticking with Twitter merger arbitrage strategists 0:07:58.960 --> 0:08:01.480 a cow and say the mark is pricing in just 0:08:01.560 --> 0:08:03.000 a bit more than the odds of a coin. Tash 0:08:03.080 --> 0:08:06.040 that Ela Musk still with Twitter, will close by the 0:08:06.080 --> 0:08:09.680 court issued deadline of October. Here tell us more about 0:08:09.680 --> 0:08:12.760 the latest Bloomberg's Kurt Wagner, who has has of course 0:08:12.760 --> 0:08:14.360 been covering this whole pograah for us. We're gonna get 0:08:14.360 --> 0:08:16.000 to the weach that thing in a moment, Kurt. But 0:08:16.080 --> 0:08:19.360 what do you make of this whole six chance thing, 0:08:20.480 --> 0:08:25.480 especially given it has been a short thing to this point. Yeah, 0:08:25.680 --> 0:08:27.600 I was trying to think of something clever about form 0:08:27.640 --> 0:08:31.760 me once, you know whatever, But to me it feels 0:08:31.920 --> 0:08:35.960 higher than sixty simply because you know, both sides are 0:08:36.000 --> 0:08:38.840 showing up. They want the same deal, right, They want 0:08:38.880 --> 0:08:40.880 the same price, at least that's what they say, And 0:08:40.880 --> 0:08:43.880 now a judges said, okay, you have until to do 0:08:43.960 --> 0:08:46.800 this and a lot of the stuff getting debt financing 0:08:46.800 --> 0:08:50.000 in order, for example, getting shareholder approval, that's all done. Right, 0:08:50.040 --> 0:08:52.480 So they say they want the same deal. They say 0:08:53.000 --> 0:08:54.480 that all the stuff that they need to do to 0:08:54.520 --> 0:08:57.920 get that done is essentially done. So I feel like 0:08:57.960 --> 0:08:59.880 it's got to be higher than sixty pc, Emily, But 0:09:00.120 --> 0:09:01.559 you know what, what do I know? I feel like 0:09:01.600 --> 0:09:03.480 we've been talking about this for six months and it 0:09:03.559 --> 0:09:07.760 keeps changing. So right, what do any of us know? Well, 0:09:07.800 --> 0:09:10.600 Elon Musk knows, or at least he has said he 0:09:10.640 --> 0:09:15.080 wants to make Twitter part of this Everything app vision. 0:09:15.559 --> 0:09:17.840 What does that mean to you? How do you interpret that? 0:09:17.920 --> 0:09:22.120 Does it sound to you like we chat? It sounds 0:09:22.120 --> 0:09:25.000 a lot like we chat um. And it's not necessarily 0:09:25.040 --> 0:09:28.200 a bad idea because we chat is incredibly popular in 0:09:28.320 --> 0:09:32.280 China and we've seen other companies, mostly Facebook, try to 0:09:32.320 --> 0:09:34.680 do this as well. Where I think it's an issue 0:09:35.240 --> 0:09:37.520 is that, as Alex said in kind, of the intro 0:09:37.640 --> 0:09:40.840 you showed, Twitter just doesn't have the scale that's needed 0:09:40.840 --> 0:09:44.000 for for something like this, right. And most of what 0:09:44.160 --> 0:09:46.079 makes we chat so valuable, I think, is that it's 0:09:46.080 --> 0:09:48.959 also the place where people do all of their communication. Right. 0:09:48.960 --> 0:09:50.640 It's not just where you get your Uber or you 0:09:50.760 --> 0:09:53.400 order your food delivery. It's where you're talking with mom 0:09:53.400 --> 0:09:56.200 and dad and grandma and your boss and your cousins. 0:09:56.200 --> 0:09:58.760 And like, Twitter is not that place right there. It 0:09:58.920 --> 0:10:01.360 is not a place that people are hanging out. And 0:10:01.400 --> 0:10:03.840 so for me, the idea of suddenly turning into a 0:10:03.880 --> 0:10:07.320 place where everyone is hanging out and suddenly doing their shopping, 0:10:07.920 --> 0:10:10.560 it just doesn't really make sense. Again, I like the 0:10:10.600 --> 0:10:14.400 idea and concept because it's see it clearly works in China. 0:10:14.880 --> 0:10:16.679 I just don't think that this is going to happen 0:10:16.720 --> 0:10:19.520 for Twitter now. It is ambitious and if anyone can 0:10:19.559 --> 0:10:21.160 do it right, you would say, all right, well maybe 0:10:21.160 --> 0:10:23.760 Elon Musk is that person. But Mark Zuckerberg's trying to 0:10:23.880 --> 0:10:25.800 met a few times and it's not happening there either. 0:10:27.520 --> 0:10:30.240 So speaking of scale, how are you thinking about potential 0:10:30.320 --> 0:10:35.560 staffing changes once Musk presumably takes over the company. You know, 0:10:35.640 --> 0:10:37.360 is there going to be a mass exodus. Is there 0:10:37.360 --> 0:10:39.920 going to be an influx of of you know, Elon 0:10:40.000 --> 0:10:43.360 Musk's fans who want to work for him. You know, 0:10:43.640 --> 0:10:47.120 clearly the size that the company is can't necessarily handle, 0:10:47.720 --> 0:10:50.840 like you said, the scale of a social media platform, 0:10:50.920 --> 0:10:54.160 the size of wei chat. Well, I can tell you 0:10:54.160 --> 0:10:56.120 what I know, and then I can speculate a little bit. 0:10:56.160 --> 0:10:57.680 What I know is that a lot of people inside 0:10:57.720 --> 0:11:01.840 Twitter are currently worried for their jobs. Right. They expect 0:11:01.880 --> 0:11:03.800 Ellen to come in and do laughs. They expect them 0:11:03.800 --> 0:11:07.680 to essentially kind of clean the executive ranks um you know, 0:11:07.760 --> 0:11:12.480 certainly Ceo Pragaga Waal, probably the head lawyer Vigionatti and 0:11:12.600 --> 0:11:14.600 you know, this is something that happens a lot of 0:11:14.600 --> 0:11:17.439 times during an acquisition, but I think especially now because 0:11:17.480 --> 0:11:20.440 Ellen has basically said he doesn't have competence or faith 0:11:20.679 --> 0:11:22.760 in those leaders. Right, So this is this is what 0:11:22.800 --> 0:11:25.960 people are bracing for now. What he does next is 0:11:26.000 --> 0:11:28.880 going to be a good question. Is he going to 0:11:28.960 --> 0:11:31.320 trim the company down and simply keep it sort of 0:11:31.320 --> 0:11:33.920 the engineers bare bones folks who are going to build product, 0:11:34.320 --> 0:11:36.160 or if he wants to do this kind of super 0:11:36.200 --> 0:11:38.640 apt thing he's talking about he's gonna need partnerships people, 0:11:38.679 --> 0:11:42.840 He's gonna need probably content people like moderation people, right, 0:11:42.880 --> 0:11:44.880 which is is something that he has kind of shied 0:11:44.880 --> 0:11:47.360 away from. And so that's where I think things get 0:11:47.360 --> 0:11:50.719 a little tricky, is you know, the financial vision for 0:11:50.760 --> 0:11:52.720 the company seems to be let's cut everything back and 0:11:52.720 --> 0:11:56.120 and maybe you know, get healthy, as he likes to say, um, 0:11:56.160 --> 0:11:59.120 but the vision is much more ambitious than that, and 0:11:59.160 --> 0:12:02.200 I'm not sure that Surly works with that small of 0:12:02.240 --> 0:12:07.400 his staff. All Right, lots continue to follow a Kurt, 0:12:07.440 --> 0:12:09.640 I know you'll be all over it. Thank you for 0:12:09.679 --> 0:12:11.520 the updates. I want to get a quick check on 0:12:11.559 --> 0:12:14.880 another story that we're following, which is several airport websites 0:12:14.920 --> 0:12:18.440 in the US we're knocked offline by a pro Russia 0:12:18.440 --> 0:12:21.360 activist group. Chicago's O'Hare and l a X among the 0:12:21.400 --> 0:12:24.720 websites hacked. The group, called kill Net, has been linked 0:12:24.760 --> 0:12:27.480 to a series of cyber attacks against Western targets, including 0:12:27.520 --> 0:12:41.720 disruptions to some state government websites last week. Curology, the 0:12:41.760 --> 0:12:46.280 cosmetics company that provides prescription skincare customized to patient skin, 0:12:46.840 --> 0:12:49.959 has grown at lightning speed over the last few years. 0:12:49.960 --> 0:12:54.880 With revenue projected over two million dollars. The company is 0:12:54.920 --> 0:12:57.800 now profitable and announcing changes to its c suite to 0:12:57.840 --> 0:13:00.600 prepare for the next phase. Dr d with Larger, co 0:13:00.679 --> 0:13:03.720 founder of Curology, stepped down as CEO to pass the 0:13:03.720 --> 0:13:07.720 torch to Heather Wallace, who was most recently president at Revlon. 0:13:07.840 --> 0:13:10.720 They're both joining me now for more on the transition. So, David, 0:13:10.720 --> 0:13:12.400 I want to start with you give us some background 0:13:12.400 --> 0:13:14.760 on the transition here and who popped the question and 0:13:14.800 --> 0:13:18.319 how oh thank you Emily. That would be me who 0:13:18.360 --> 0:13:21.000 popped the question. And the reason is that the skills 0:13:21.000 --> 0:13:23.600 you need to successfully found the company are just very 0:13:23.640 --> 0:13:25.920 different than the skills you need to take an established 0:13:25.920 --> 0:13:28.680 company like cure Ology and grow it to its full potential. 0:13:28.720 --> 0:13:30.880 And so you know, right now the company is in 0:13:30.880 --> 0:13:34.400 this incredible position for the future because um, like you said, 0:13:34.440 --> 0:13:37.360 we became profitable and we really have the ability to invest. 0:13:37.720 --> 0:13:39.600 And so my goal is just to find someone to 0:13:39.640 --> 0:13:41.920 help take us to that next level. And I just 0:13:41.960 --> 0:13:46.800 couldn't be more excited to be able to found Heather here. Heather, 0:13:47.080 --> 0:13:50.160 given what you learned recently at Revlon, what's your vision 0:13:50.679 --> 0:13:54.080 for the company and you know what you know about 0:13:54.080 --> 0:13:56.760 what's going on in in the beauty world, especially given 0:13:56.840 --> 0:13:59.800 that we are moving into potentially a pretty pronounced down 0:13:59.840 --> 0:14:03.520 to earn. So I mean a couple of things. One 0:14:03.720 --> 0:14:07.280 is I'm so sorry excited to be joining Curology, and 0:14:07.360 --> 0:14:10.880 Carology is actually doing what many baby companies are talking about, 0:14:10.880 --> 0:14:15.840 which is personalization. So it's truly personal personalized skincare. We 0:14:15.880 --> 0:14:21.520 are connecting people with dermatology providers that create custom formulas 0:14:21.560 --> 0:14:24.680 and we can service those consumers and really help them 0:14:24.680 --> 0:14:28.440 have better skin outcomes. And so people, your face is 0:14:28.480 --> 0:14:30.200 the way that you face the world, and so how 0:14:30.280 --> 0:14:32.920 you look and how your face looks really has a 0:14:32.960 --> 0:14:36.120 big impact on your confidence, on how you feel um 0:14:36.160 --> 0:14:38.040 and and truly a big impact in your life. So 0:14:38.080 --> 0:14:41.160 I'm excited about that with the Ology. Now. You know, 0:14:41.160 --> 0:14:43.360 as terms of what's happening with the economy, I think 0:14:43.400 --> 0:14:45.400 where we all are concerned about that this is an 0:14:45.400 --> 0:14:49.560 incredibly resilient category um and I do expect us to 0:14:49.640 --> 0:14:51.680 be able to do very well during this time period. 0:14:53.160 --> 0:14:56.440 I want to agree that good skincare is vital, but 0:14:56.560 --> 0:14:58.200 how much do you think people are really going to 0:14:58.240 --> 0:15:01.360 be spending on themselves right now when they're spending more 0:15:01.480 --> 0:15:04.640 on everything from gas to groceries. I mean, isn't that 0:15:04.720 --> 0:15:08.960 the first thing to go you It's actually not. Um. 0:15:09.000 --> 0:15:11.720 There are many things that go before skincare. So I've 0:15:11.720 --> 0:15:15.280 actually seen data over time on UM what happens during 0:15:15.440 --> 0:15:18.640 challenging economic times, and skincare is one of the most 0:15:18.720 --> 0:15:21.400 resilient categories. The end of the day, as you say, 0:15:21.560 --> 0:15:23.640 you know you're going to work, you're in front of 0:15:23.680 --> 0:15:27.240 friends and family, You're putting your best face forward, and 0:15:27.280 --> 0:15:29.560 it is very important, and so I do expect consumers 0:15:29.560 --> 0:15:33.880 to still spend in this area. David. The cult of 0:15:33.920 --> 0:15:37.440 the founder is so strong, and especially in Silicon Valley, 0:15:37.480 --> 0:15:39.840 and I'm wondering if you've You've been pretty straightforward about 0:15:39.840 --> 0:15:41.560 why you're doing this in now, do you think too 0:15:41.560 --> 0:15:45.560 many founders stay too long and that more founders should 0:15:45.640 --> 0:15:52.440 leave potentially sooner. Every company is different, but but I 0:15:52.480 --> 0:15:55.280 do believe that you know, the decision to pass the baton, 0:15:55.320 --> 0:15:57.760 as you say to someone like Heather, should actually be 0:15:57.840 --> 0:16:00.760 made a lot more commonly, because ultimately what we care 0:16:00.760 --> 0:16:03.480 about is getting our business to that next level, and 0:16:03.680 --> 0:16:07.120 the same person to successfully found a company isn't necessarily 0:16:07.160 --> 0:16:09.000 the right person to get you to that next level. 0:16:09.040 --> 0:16:12.080 So so I do think there's um um there. There's 0:16:12.080 --> 0:16:17.240 a lot of merit in that um Heather, I know 0:16:17.280 --> 0:16:21.920 that Revlon recently filed for bankruptcy. They're talking about supply 0:16:22.040 --> 0:16:24.520 chain issues. Curious if you're expecting to deal with some 0:16:24.560 --> 0:16:27.400 of those similar issues at cure Ology, especially as it 0:16:27.480 --> 0:16:30.440 pertains to the supply chain and what you learned there 0:16:30.480 --> 0:16:33.520 that you can potentially apply here and head off some 0:16:33.640 --> 0:16:37.440 of these challenges. Yeah, so I think when it comes 0:16:37.480 --> 0:16:40.680 to cure Ology, our supply chain is really focused in 0:16:40.720 --> 0:16:43.760 the US, and so it's much more simple. We are 0:16:44.400 --> 0:16:46.800 providing products end to end, but it's a much more 0:16:46.840 --> 0:16:49.120 simple supply chain. So the other thing I know is 0:16:49.120 --> 0:16:52.200 that just keeping us focused, so keeping us focused on 0:16:52.400 --> 0:16:54.480 the right and the core of the products and being 0:16:54.520 --> 0:16:58.240 able to continue to do our personalization and our customized 0:16:58.280 --> 0:17:01.000 formulas at scale is going to be where the focus is. 0:17:02.480 --> 0:17:04.320 So let's talk a little bit more about that. What's 0:17:04.359 --> 0:17:06.359 your hope for the next chapter of growth given the 0:17:06.440 --> 0:17:09.520 rise in direct consumer skincare, the rise in personalization, as 0:17:09.560 --> 0:17:12.159 you say, the rise in subscription services, but also the 0:17:12.160 --> 0:17:14.440 fact that we're you know, some people might be paying 0:17:14.480 --> 0:17:18.040 for a few different script subscription services. Um, you know 0:17:18.160 --> 0:17:20.879 at one time, how do you how do you see 0:17:21.280 --> 0:17:25.400 balance consumers balancing all of that, and curology winning out. 0:17:26.600 --> 0:17:30.200 So the company was founded on the mission of access, 0:17:30.240 --> 0:17:34.480 that consumers should have access to the kind of skincare 0:17:34.560 --> 0:17:38.280 solutions that the best dermatologists can provide. And so as 0:17:38.280 --> 0:17:40.320 we think about growth in the future, it's all going 0:17:40.359 --> 0:17:44.000 to be about continued awareness and access to those providers. 0:17:44.160 --> 0:17:46.359 And the more access and awareness that we can create, 0:17:46.440 --> 0:17:49.000 the more consumers we can bring in. Where the the 0:17:49.200 --> 0:17:53.000 largest player in the personalized skincare space, but we are 0:17:53.040 --> 0:17:56.480 relatively small at this point compared to the twenty billion 0:17:56.600 --> 0:18:01.639 dollar facial skincare market in the US. David, what are 0:18:01.680 --> 0:18:04.520 you hoping to see in this next chapter and how 0:18:04.560 --> 0:18:09.280 involved will you be? I will be stepping into the 0:18:09.320 --> 0:18:13.520 position of board chairperson, and you know, ultimately the most 0:18:13.520 --> 0:18:16.280 important thing is that Chology succeeds, and so I'm going 0:18:16.320 --> 0:18:18.040 to be helping in every way that any way that 0:18:18.080 --> 0:18:20.240 I can. UM But you know, the biggest thing for 0:18:20.280 --> 0:18:24.080 me is that we have this this really huge opportunity 0:18:24.160 --> 0:18:25.640 in front of us because I think if you talk 0:18:25.720 --> 0:18:28.640 to almost anybody who's used cure Ology, they will tell 0:18:28.640 --> 0:18:30.840 you there's no way I'm going back to using what 0:18:30.880 --> 0:18:33.320 I use before. But when you take a step back 0:18:33.400 --> 0:18:38.080 and look at the market, about plus percent of people 0:18:38.200 --> 0:18:42.600 are still using non personalized, less effective skincare. And so 0:18:42.680 --> 0:18:44.800 what I really do hope to see is just us 0:18:44.800 --> 0:18:48.719 being able to continue to spearhead the market shifting towards 0:18:48.720 --> 0:18:51.520 the more effective, personalized type of skincare that the best 0:18:51.600 --> 0:18:57.040 dermatologists provide. And speaking of the market, Heather, I mean, 0:18:57.040 --> 0:18:59.520 are you thinking about an I p O. You know, 0:18:59.560 --> 0:19:03.600 in terms of the next phase of growth? You know, 0:19:03.600 --> 0:19:05.840 who knows what the future will bring. I think we're 0:19:05.880 --> 0:19:09.400 going to be focused on profitable growth and reaching more 0:19:09.440 --> 0:19:14.000 consumers with our fantastic customized solutions UM and the better skin, 0:19:14.119 --> 0:19:16.800 the more better skin outcomes, that will just unlock the 0:19:16.800 --> 0:19:23.240 future possibilities. All right, Heather Wallace, the new CEO of Curology, 0:19:23.359 --> 0:19:27.520 and Dr David Lusher, co founder of Curology, moving into 0:19:27.520 --> 0:19:30.000 the role of chair. Thank you both for joining us. 0:19:39.480 --> 0:19:42.120 Welcome back to Bloomer Technology. I'm emily changing San Francisco. 0:19:42.160 --> 0:19:43.840 I want to turn back to the marcus As, heads 0:19:43.880 --> 0:19:45.720 of the I m F and the World Bank warn 0:19:45.720 --> 0:19:48.960 of a rising risk of global recession. This with advanced 0:19:49.000 --> 0:19:52.560 economy slowing down and faster inflation forcing the Fed to 0:19:52.680 --> 0:19:54.920 keep raising interest rates. What does it mean for tech 0:19:54.920 --> 0:19:57.680 stocks and tech earnings coming up? I want to break 0:19:57.680 --> 0:20:00.720 that all down with Michael Casper of Blue Brig Intelligence. 0:20:00.720 --> 0:20:04.000 So what do you make of the macro environment, what's 0:20:04.040 --> 0:20:07.840 happening here and what it means for tech stox? Michael, Yeah, 0:20:07.880 --> 0:20:11.199 the macro environment is still somewhat strong for what it 0:20:11.280 --> 0:20:14.320 is a technical reception right now. Um, just to give 0:20:14.320 --> 0:20:17.159 you some context around the SMP earnings at large, we 0:20:17.240 --> 0:20:19.800 were looking at about a two point five percent expansion 0:20:20.640 --> 0:20:23.360 in three Q. It's still an expansion, UM, and that's 0:20:23.359 --> 0:20:25.639 gonna be a the trough, or at least looks like 0:20:25.640 --> 0:20:28.080 it's gonna be the trough, at least according a consensus 0:20:28.760 --> 0:20:32.399 um for this earning cycle, and specifically with tech stocks, 0:20:32.880 --> 0:20:34.920 Tech is looking to have about a seven point five 0:20:34.960 --> 0:20:40.040 percent earngas contraction. That's only second worst to communications and financials, 0:20:40.040 --> 0:20:41.960 which are tied with the twelve point one percent to 0:20:42.040 --> 0:20:45.359 client um. And some of the tech stocks are specifically 0:20:45.400 --> 0:20:48.120 some of the industries look to be under pressure here 0:20:48.200 --> 0:20:50.920 given the rising dollar and some of the supply chain 0:20:50.960 --> 0:20:55.760 concerns that linger. Now the World Bank is saying there's 0:20:55.800 --> 0:20:59.920 a real danger of worldwide contraction. You've got Jamie dime 0:21:00.040 --> 0:21:03.000 In saying market is going to fall another twenty percent. 0:21:03.280 --> 0:21:09.119 What's your own research showing, well, we're seeing much lighter contraction. Right, 0:21:09.200 --> 0:21:12.439 So if you use our fare value model and use 0:21:12.440 --> 0:21:14.680 September slow as the price and try to back into 0:21:14.800 --> 0:21:18.240 what earnings contraction was priced by the market, you're looking 0:21:18.240 --> 0:21:22.000 at about a five to EPs to climb that was 0:21:22.080 --> 0:21:24.800 priced in by that September. And the varying scenarios have 0:21:24.960 --> 0:21:28.719 to do with the different rates that drive ps, right, 0:21:28.760 --> 0:21:31.640 So if you get a five percent expansion or five 0:21:31.640 --> 0:21:35.000 percent interest rate, you're looking at about a five percent 0:21:35.000 --> 0:21:36.920 earning strop to accompany that. And by the way, that 0:21:36.960 --> 0:21:39.440 would be pretty much right in line with the narrowest 0:21:39.880 --> 0:21:42.640 earning strop that we've had across all the recessions historically 0:21:42.680 --> 0:21:47.240 back to UM, in line with that recession, which coincidentally 0:21:47.480 --> 0:21:52.520 was a very inflationary period as well. So we've got 0:21:52.520 --> 0:21:55.960 a raft of tech earnings coming out next week. Uh, 0:21:56.119 --> 0:21:58.720 Netflix will be kicking us off. Of course, we've got 0:21:58.880 --> 0:22:01.200 you know, all the big tech penning's quickly to follow. 0:22:01.320 --> 0:22:03.360 What are you looking at and what are you expecting? 0:22:04.600 --> 0:22:07.760 I'm looking at the outlooks for companies, especially the makencaps. 0:22:07.800 --> 0:22:10.359 Right now, the makacaps are expected to have about a 0:22:10.440 --> 0:22:14.640 two earnings increase on medium to the top five tech 0:22:14.720 --> 0:22:17.400 and tech related stocks test slide through Tesla in there 0:22:17.960 --> 0:22:21.160 um and that would be the worst going back to one. 0:22:22.320 --> 0:22:24.520 So I'm watching the outlooks on those make acap stocks 0:22:25.000 --> 0:22:28.840 within tech. I think Semmy's is particularly interesting given given 0:22:28.880 --> 0:22:32.600 the chip news today. UM limiting exports to China and 0:22:32.680 --> 0:22:36.160