1 00:00:02,240 --> 00:00:05,520 Speaker 1: From the heart of where Innovation, money and power COLLI 2 00:00:06,360 --> 00:00:10,879 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:10,960 --> 00:00:27,720 Speaker 1: Emily Jay I'm Emily check in San Francisco and this 4 00:00:27,840 --> 00:00:30,400 Speaker 1: is Bloomberg Technology. Coming up in the next hour. Texas 5 00:00:30,400 --> 00:00:34,239 Speaker 1: Governor Greg Abbott says the gunman who killed nineteen children 6 00:00:34,240 --> 00:00:38,240 Speaker 1: and two adults used Facebook to talk about his plants, 7 00:00:38,240 --> 00:00:41,199 Speaker 1: but the social network clarifies, claiming the posts were actually 8 00:00:41,680 --> 00:00:44,080 Speaker 1: private messages. We will bring you the very latest as 9 00:00:44,080 --> 00:00:49,160 Speaker 1: we learn more about this horrific turn of events, plus 10 00:00:49,280 --> 00:00:53,240 Speaker 1: lessons learned from Twitter's annual shareholder meeting, investor's voicing concerns 11 00:00:53,240 --> 00:00:56,720 Speaker 1: about Elon Musk's blooming takeover, and just after the meeting wraps, 12 00:00:57,160 --> 00:00:59,920 Speaker 1: Musk files to change the balance of equity and debt 13 00:01:00,000 --> 00:01:02,400 Speaker 1: in the deal. Our own at Ludlow will join us 14 00:01:02,440 --> 00:01:06,960 Speaker 1: live from the ground, and Meta and Amazon holding their 15 00:01:07,000 --> 00:01:09,480 Speaker 1: annual meetings as well. It's the first one for Amazon 16 00:01:09,600 --> 00:01:13,440 Speaker 1: CEO Andy Jassey, how he addressed growing concerns about worker 17 00:01:13,560 --> 00:01:16,800 Speaker 1: safety at the company's market cap threatens to dip back 18 00:01:16,880 --> 00:01:20,959 Speaker 1: below one trillion dollars. All of that in a moment, 19 00:01:21,040 --> 00:01:22,759 Speaker 1: but first let's get a look at the market, stocks 20 00:01:22,800 --> 00:01:25,520 Speaker 1: climbing after a volatile trading day and the tech having 21 00:01:25,560 --> 00:01:30,040 Speaker 1: NAZAC one hundred outperforming blooming. Waga Gupta has the latest Whittica. 22 00:01:30,160 --> 00:01:33,440 Speaker 1: Why the turn from yesterday, Yes, Emily is quite interesting 23 00:01:33,440 --> 00:01:36,720 Speaker 1: that we do see stocks finishing the day in the green, 24 00:01:36,760 --> 00:01:40,280 Speaker 1: and as you mentioned, NAZAC one hundred really outperforming here 25 00:01:40,280 --> 00:01:41,880 Speaker 1: and a lot of it, Emily, down to some of 26 00:01:41,920 --> 00:01:45,800 Speaker 1: those heavyweights you apple your Amazons in particular, leading that 27 00:01:46,440 --> 00:01:48,520 Speaker 1: index higher. But I will point out that a lot 28 00:01:48,520 --> 00:01:51,880 Speaker 1: of the impetus, that momentum really started gaining after the 29 00:01:51,920 --> 00:01:54,760 Speaker 1: Fed minutes. We're starting to see traders kind of pairing 30 00:01:54,840 --> 00:01:57,400 Speaker 1: back their expectations of just how aggressive the pace of 31 00:01:57,480 --> 00:02:00,400 Speaker 1: rate hikes. Maybe that's on some of those owth fear 32 00:02:00,480 --> 00:02:02,640 Speaker 1: So you didn't see much change in that tenure year, 33 00:02:02,720 --> 00:02:05,360 Speaker 1: but the two year yield, which is more sensitive to 34 00:02:05,480 --> 00:02:08,720 Speaker 1: Fed policy changes, just ticking up a little higher. And 35 00:02:08,760 --> 00:02:11,240 Speaker 1: then I do have to touch on end Video. They 36 00:02:11,360 --> 00:02:14,120 Speaker 1: just had their earnings out. You see that stock down 37 00:02:14,160 --> 00:02:17,040 Speaker 1: as some seven percent in after hours trade. They mere 38 00:02:17,120 --> 00:02:20,840 Speaker 1: the analysts estimates. They've been expecting some robust profit and growth. 39 00:02:20,840 --> 00:02:23,240 Speaker 1: But this stock on a year to date basis down 40 00:02:23,320 --> 00:02:26,800 Speaker 1: some forty or so. I mean, it's quite surprising. Just 41 00:02:26,840 --> 00:02:28,840 Speaker 1: back in November we were talking about it being close 42 00:02:28,880 --> 00:02:32,320 Speaker 1: to a one trillion dollar market cap valuation. But this, Emily, 43 00:02:32,360 --> 00:02:35,160 Speaker 1: is a story broader in the chip space. If you 44 00:02:35,240 --> 00:02:38,720 Speaker 1: think back to last year, we saw chips surging off 45 00:02:38,840 --> 00:02:41,800 Speaker 1: the chip shortage, but what we're seeing this year is 46 00:02:41,840 --> 00:02:44,600 Speaker 1: that momentum has really started to wane. An end video 47 00:02:44,639 --> 00:02:47,600 Speaker 1: mentioned the key issue there really about the supply chain 48 00:02:47,720 --> 00:02:52,320 Speaker 1: issues from those COVID China lockdowns, but it's also about valuations, Emily, 49 00:02:52,520 --> 00:02:55,880 Speaker 1: because investors have been shunning some of these high pe 50 00:02:56,000 --> 00:02:58,480 Speaker 1: stocks that we've seen in the text based particularly in 51 00:02:58,520 --> 00:03:02,400 Speaker 1: this chip makers. And really I do want to get 52 00:03:02,400 --> 00:03:06,080 Speaker 1: to these annual general meetings are happening today, many of 53 00:03:06,120 --> 00:03:10,600 Speaker 1: them intact, Twitter, Amazon, and Meta. We were all following 54 00:03:10,600 --> 00:03:13,959 Speaker 1: these What were key takeaways? Yes, Emily, we'll staff with 55 00:03:14,000 --> 00:03:16,959 Speaker 1: Twitter that one very closely watched a lot of the 56 00:03:17,080 --> 00:03:20,280 Speaker 1: buzz because of course the drama surrounded by the Elon 57 00:03:20,400 --> 00:03:23,960 Speaker 1: Musk takeover drama, but that vote actually set to happen 58 00:03:24,000 --> 00:03:25,760 Speaker 1: at a later date. We did get the news the 59 00:03:25,840 --> 00:03:29,440 Speaker 1: founder Jack Dorsey stepping down off the board and a 60 00:03:29,520 --> 00:03:33,000 Speaker 1: key director also failing his re election bid. Let's move 61 00:03:33,000 --> 00:03:35,920 Speaker 1: it on to Amazon though, because the shareholders rejecting all 62 00:03:36,080 --> 00:03:40,200 Speaker 1: of the proposals that were in place to make the 63 00:03:40,240 --> 00:03:43,160 Speaker 1: conditions better for the the workers. This company has come under 64 00:03:43,160 --> 00:03:46,600 Speaker 1: a lot of scrutiny because of those conditions for workers, 65 00:03:46,640 --> 00:03:51,000 Speaker 1: as we know, and also the stock split being approved 66 00:03:51,000 --> 00:03:53,200 Speaker 1: by shareholders at twenty two one that's set to take 67 00:03:53,280 --> 00:03:57,800 Speaker 1: place in June. Emily all right, Rodko Gupta, thank you 68 00:03:57,920 --> 00:04:01,320 Speaker 1: for that round up. Meantime, were learning new details about 69 00:04:01,360 --> 00:04:05,520 Speaker 1: the deadly and devastating shooting in Uvaldi, Texas. Texas Governor 70 00:04:05,520 --> 00:04:08,480 Speaker 1: grab Abbott saying the eighteen year old gunman who killed 71 00:04:08,760 --> 00:04:12,760 Speaker 1: nineteen children and two teachers at rob Elementary School posted 72 00:04:12,800 --> 00:04:16,560 Speaker 1: about his plans on Facebook in the minute before the attack. 73 00:04:18,240 --> 00:04:21,800 Speaker 1: As of this time, the only information that was known 74 00:04:21,960 --> 00:04:28,239 Speaker 1: in advance was posted by the government on Facebook approximately 75 00:04:29,080 --> 00:04:34,520 Speaker 1: thirty minutes before reaching the school. The first post was 76 00:04:36,360 --> 00:04:40,040 Speaker 1: to the point of he said, I'm going to shoot 77 00:04:40,040 --> 00:04:45,479 Speaker 1: my grandmother. The second post was I shot my grandmother. 78 00:04:46,640 --> 00:04:50,720 Speaker 1: The third post, maybe less than fifteen minutes before arriving 79 00:04:50,720 --> 00:04:55,240 Speaker 1: at the school, was I'm going to shoot an elementary school. 80 00:04:57,480 --> 00:05:01,560 Speaker 1: Facebook spokes versus Andy Stone. However, verified and direct replies 81 00:05:01,640 --> 00:05:05,719 Speaker 1: on Twitter that the messages the governor described were private 82 00:05:05,880 --> 00:05:09,880 Speaker 1: one to one text messages that were discovered after the 83 00:05:09,920 --> 00:05:12,839 Speaker 1: tragedy occurred. I want to bring in our Bloomberg Technology 84 00:05:12,839 --> 00:05:15,320 Speaker 1: executive editor Tom Giles to discuss, so what exactly do 85 00:05:15,360 --> 00:05:17,839 Speaker 1: we know about these messages. There is a big distinction 86 00:05:17,880 --> 00:05:22,359 Speaker 1: between a public post and a private message, absolutely major distinction, 87 00:05:22,400 --> 00:05:26,160 Speaker 1: and what a horrific set of developments. What we know 88 00:05:26,440 --> 00:05:29,599 Speaker 1: is that once when these things happen, there's always a 89 00:05:29,680 --> 00:05:35,360 Speaker 1: question about what roles social media played in either broadcasting them, 90 00:05:35,400 --> 00:05:40,440 Speaker 1: glorifying them, Was social media involved in any way? Could 91 00:05:40,480 --> 00:05:45,200 Speaker 1: this have been prevented? Those questions always arise. In this instance, 92 00:05:45,400 --> 00:05:49,839 Speaker 1: what Greg Abbott said was taken to mean that somehow 93 00:05:49,880 --> 00:05:53,279 Speaker 1: he was publicizing his intentions, that he had made this 94 00:05:53,320 --> 00:05:56,800 Speaker 1: in a public setting. When you say post on Facebook, 95 00:05:57,120 --> 00:05:59,360 Speaker 1: that makes it sound like he's putting it out there 96 00:05:59,360 --> 00:06:03,240 Speaker 1: for everyone to hear, suggesting that maybe could this have 97 00:06:03,320 --> 00:06:06,840 Speaker 1: been prevented? Maybe was Facebook in some way involved in 98 00:06:06,839 --> 00:06:11,520 Speaker 1: this terrible way. Quickly Facebook comes out and says, wait, 99 00:06:12,279 --> 00:06:15,479 Speaker 1: these were private one to one message is not the 100 00:06:15,600 --> 00:06:19,200 Speaker 1: kinds of things that could have been seen by the public. 101 00:06:19,680 --> 00:06:22,960 Speaker 1: We are trying to get clarification from Abbott's office as 102 00:06:23,000 --> 00:06:26,039 Speaker 1: we speak to determine what he meant by that. Was 103 00:06:26,080 --> 00:06:30,640 Speaker 1: he referring to some public or semi public part of Facebook, 104 00:06:30,680 --> 00:06:33,719 Speaker 1: maybe in groups? Was there something out there that we 105 00:06:33,760 --> 00:06:36,440 Speaker 1: could have seen? Now, none of us has seen anything 106 00:06:36,480 --> 00:06:39,840 Speaker 1: publicly on Facebook. Obviously that would be blasted all over 107 00:06:40,000 --> 00:06:44,719 Speaker 1: social media. If somebody had used the public news feed 108 00:06:44,760 --> 00:06:47,480 Speaker 1: on Facebook to talk about this kind of thing. We 109 00:06:47,520 --> 00:06:51,000 Speaker 1: don't have any evidence of that. We're seeking clarification from 110 00:06:51,040 --> 00:06:55,480 Speaker 1: Abbott's office as we speak, but thus far Facebook has 111 00:06:55,520 --> 00:07:00,160 Speaker 1: been like this was private one to one ket Can 112 00:07:00,240 --> 00:07:03,279 Speaker 1: we confirm though, that these were on a Facebook platform 113 00:07:03,600 --> 00:07:07,000 Speaker 1: private because Facebook doesn't have text messages if you will, 114 00:07:07,040 --> 00:07:10,760 Speaker 1: there are direct right, there's the direct there's m there's WhatsApp, 115 00:07:10,840 --> 00:07:13,120 Speaker 1: there's the kinds of communications that you can use you 116 00:07:13,160 --> 00:07:15,840 Speaker 1: can use Instagram for But how much of that does 117 00:07:16,040 --> 00:07:20,000 Speaker 1: does Facebook have access to? Now? In a case like this, 118 00:07:20,520 --> 00:07:24,080 Speaker 1: if the shooter or the alleged shooter was a Facebook user, 119 00:07:24,600 --> 00:07:29,560 Speaker 1: Facebook would have justification for going into his private messaging, 120 00:07:29,600 --> 00:07:33,600 Speaker 1: but we don't know which platform on Facebook. If it 121 00:07:33,720 --> 00:07:36,360 Speaker 1: was in fact a Facebook platform that he used well. 122 00:07:36,440 --> 00:07:39,680 Speaker 1: And Andy Stone also says in this Twitter message that 123 00:07:39,720 --> 00:07:45,160 Speaker 1: they are coordinating cooperating with law enforcement in their ongoing investigation. 124 00:07:45,840 --> 00:07:51,000 Speaker 1: So Facebook is now somehow involved in this investigation. Um, 125 00:07:51,080 --> 00:07:52,480 Speaker 1: what do you make of the way that Facebook is 126 00:07:52,520 --> 00:07:57,720 Speaker 1: communicating this though through direct replies on Twitter not maybe 127 00:07:57,760 --> 00:08:03,200 Speaker 1: put a statement statement? I mean will in fairness, in 128 00:08:03,240 --> 00:08:06,080 Speaker 1: fairness to Facebook, I mean in Meta right, Twitter is 129 00:08:06,120 --> 00:08:09,160 Speaker 1: an official platform, I mean it is recognized. As a 130 00:08:09,200 --> 00:08:11,800 Speaker 1: way of getting the statement out there, I would like 131 00:08:12,560 --> 00:08:17,280 Speaker 1: Facebook Meta to be more clear about which messaging platform 132 00:08:17,360 --> 00:08:21,120 Speaker 1: they're talking about here. And remember, you know, in cases 133 00:08:21,200 --> 00:08:24,640 Speaker 1: like this, law enforcement will will want to move very 134 00:08:24,760 --> 00:08:28,560 Speaker 1: very quickly to get any private communications. They use power 135 00:08:28,600 --> 00:08:31,280 Speaker 1: of subpoena, they use court orders. They're able to get 136 00:08:31,560 --> 00:08:35,120 Speaker 1: access to these kinds of things that ordinarily big tech 137 00:08:35,240 --> 00:08:38,600 Speaker 1: does not want to share. But in this instance, obviously 138 00:08:39,160 --> 00:08:43,360 Speaker 1: Meta has a great interest in helping law enforcement and 139 00:08:43,440 --> 00:08:47,000 Speaker 1: the greater public get to the bottom of how its 140 00:08:47,040 --> 00:08:51,960 Speaker 1: platform may have been used, and incredibly important that we 141 00:08:52,000 --> 00:08:55,280 Speaker 1: do get to the bottom of it, given the gravity 142 00:08:55,360 --> 00:08:58,680 Speaker 1: of this situation. Tom Giles, our executive editor, thank you 143 00:08:59,120 --> 00:09:10,920 Speaker 1: so much for sharing we know now with us Jack 144 00:09:11,000 --> 00:09:13,800 Speaker 1: Dorsey is off Twitter's board. That is just one of 145 00:09:13,840 --> 00:09:17,080 Speaker 1: a few developments from Twitter's annual shareholder meeting. His departure 146 00:09:17,120 --> 00:09:19,680 Speaker 1: was announced earlier this year, but it's still notable since 147 00:09:19,720 --> 00:09:22,600 Speaker 1: it is the first time since two thousand six that 148 00:09:22,679 --> 00:09:26,160 Speaker 1: he has had no formal role at the company. No 149 00:09:26,280 --> 00:09:28,960 Speaker 1: new details on Elon Musk's takeover deal were shared, but 150 00:09:29,240 --> 00:09:33,440 Speaker 1: his shadow loomed large. CEO Paragua Agrawal opened his remarks 151 00:09:33,440 --> 00:09:39,120 Speaker 1: by addressing concerns about misinformation and bias. More broadly, we're 152 00:09:39,200 --> 00:09:44,600 Speaker 1: constantly improving our product, our policies, and our processes in 153 00:09:44,720 --> 00:09:48,120 Speaker 1: order to earn more trust. We believe Twitter is a 154 00:09:48,200 --> 00:09:51,720 Speaker 1: place for different voices and perspective to be. Our rules 155 00:09:51,720 --> 00:09:55,880 Speaker 1: are enforced objectively on content and accounts, and our policies 156 00:09:55,880 --> 00:10:01,920 Speaker 1: remain neutral too political identity and ideology. Our own and 157 00:10:02,000 --> 00:10:04,400 Speaker 1: bloodlaw joining us now has been following the meeting all 158 00:10:04,480 --> 00:10:07,960 Speaker 1: day and no vote ed on the Elon Musk deal. 159 00:10:08,200 --> 00:10:13,520 Speaker 1: But just how big was his shadow over this meeting today? Yeah? 160 00:10:13,559 --> 00:10:16,679 Speaker 1: You know, shareholders found a way to get the references 161 00:10:16,720 --> 00:10:19,360 Speaker 1: in there, right. There was one proposal from our Junia Capital, 162 00:10:19,400 --> 00:10:21,880 Speaker 1: which you know really well, and on having a new 163 00:10:21,920 --> 00:10:24,839 Speaker 1: board member with a high level of expertise in human 164 00:10:24,880 --> 00:10:27,600 Speaker 1: and civil rights. And the point that Natasha Lamb and 165 00:10:27,600 --> 00:10:30,480 Speaker 1: our Juna made was had Twitter had a better track 166 00:10:30,559 --> 00:10:33,320 Speaker 1: record in human civil rights, they'd have a better track 167 00:10:33,400 --> 00:10:36,439 Speaker 1: record on free speech and freedom expression, and we would 168 00:10:36,440 --> 00:10:38,920 Speaker 1: not be where we are with the world's richest man 169 00:10:38,960 --> 00:10:41,720 Speaker 1: trying to take the company private to fix the issue 170 00:10:41,920 --> 00:10:43,559 Speaker 1: of freedom of speech, which of course is one of 171 00:10:43,600 --> 00:10:48,640 Speaker 1: the big rationales behind his decisions by the company. He says, Now, 172 00:10:49,400 --> 00:10:53,600 Speaker 1: just after the meeting ends, Elon Musk files a new 173 00:10:54,280 --> 00:10:59,160 Speaker 1: uht D where he boosts the equity portion of the 174 00:10:59,240 --> 00:11:02,840 Speaker 1: deal but deuces the dead portion of the deal. Can 175 00:11:02,880 --> 00:11:07,800 Speaker 1: you explain why this is significant? Yeah, it is significant. 176 00:11:07,840 --> 00:11:10,080 Speaker 1: So where the equity portion is now at thirty three 177 00:11:10,120 --> 00:11:14,760 Speaker 1: point five billion dollars, he's essentially removed altogether the margin 178 00:11:14,880 --> 00:11:18,440 Speaker 1: loan component. That's significant because the margin loan component had 179 00:11:18,440 --> 00:11:21,600 Speaker 1: the loan to value ratio of so Elon Musk had 180 00:11:21,640 --> 00:11:24,880 Speaker 1: to stump up a big number of Tesla shares to 181 00:11:24,960 --> 00:11:28,600 Speaker 1: meet the dollar value as collateral. That's gone. He in 182 00:11:28,679 --> 00:11:33,000 Speaker 1: turn currently concurrently is adding another six point two five 183 00:11:33,040 --> 00:11:36,360 Speaker 1: billion dollars of exit financing. But as part of the filing, 184 00:11:36,360 --> 00:11:40,079 Speaker 1: we learned he's talking to existing shareholders about rolling their 185 00:11:40,160 --> 00:11:43,520 Speaker 1: public shares into the private entity, something he'd stated previously 186 00:11:43,760 --> 00:11:46,760 Speaker 1: he would do. Jack Dorsey is among those shareholders that 187 00:11:46,840 --> 00:11:50,440 Speaker 1: he's speaking to. Significant because it essentially de risks the 188 00:11:50,640 --> 00:11:53,240 Speaker 1: entire thing, right and interested to hear or your next 189 00:11:53,240 --> 00:11:55,199 Speaker 1: guest has to say on that point. But it will 190 00:11:55,240 --> 00:11:58,000 Speaker 1: be also interesting to see who he brings in because 191 00:11:58,040 --> 00:12:00,560 Speaker 1: he's talking about even though he's added at six point 192 00:12:00,559 --> 00:12:03,760 Speaker 1: two five billion dollars Vexty financing that he's backing, who 193 00:12:03,760 --> 00:12:06,440 Speaker 1: else might join this and really interesting names already there right, 194 00:12:06,520 --> 00:12:09,480 Speaker 1: Larry Ellison being one. The big question I have is like, 195 00:12:09,760 --> 00:12:12,839 Speaker 1: is this just Elon Musk searching for cash or are 196 00:12:12,840 --> 00:12:15,240 Speaker 1: the strategic elements here in terms of the people he's 197 00:12:15,240 --> 00:12:19,400 Speaker 1: bringing in for a new look private Twitter. Interesting, Okay, 198 00:12:19,520 --> 00:12:22,599 Speaker 1: at Ludlow outside Twitter headquarters there in San Francisco. I 199 00:12:22,640 --> 00:12:25,199 Speaker 1: want to bring in that next guest now, Ross Gerbert 200 00:12:25,280 --> 00:12:29,560 Speaker 1: of Guru Kawasaki CEO and president. They're also a Twitter shareholder. Look, 201 00:12:29,600 --> 00:12:32,000 Speaker 1: there was no vote taken on the Musk deal today, Ross, 202 00:12:32,040 --> 00:12:35,240 Speaker 1: but if you could have voted, are you four or against? Oh? 203 00:12:36,679 --> 00:12:38,840 Speaker 1: I mean I can't wait for it to happen. I 204 00:12:38,840 --> 00:12:41,079 Speaker 1: think Elan is going to do a phenomenal job fixing 205 00:12:41,080 --> 00:12:46,000 Speaker 1: this wonderful asset. So have you increased your Twitter position 206 00:12:46,040 --> 00:12:48,520 Speaker 1: since the sell off and are you continuing to boost 207 00:12:48,559 --> 00:12:52,559 Speaker 1: it ahead of this deal? Absolutely? Absolutely. The fact that 208 00:12:53,520 --> 00:12:57,360 Speaker 1: people don't believe that Elon is serious about taking this 209 00:12:57,440 --> 00:13:00,960 Speaker 1: company over just proves how many people don't really understand 210 00:13:00,960 --> 00:13:04,120 Speaker 1: Hellan after all these years. So he's dead serious on 211 00:13:04,280 --> 00:13:08,080 Speaker 1: completing this deal. Um, and it is at a price 212 00:13:08,160 --> 00:13:11,800 Speaker 1: of over fifty four dollars and there is no renegotiation 213 00:13:11,880 --> 00:13:15,720 Speaker 1: going on, and so you know, I very much believe 214 00:13:15,760 --> 00:13:19,239 Speaker 1: he's going to complete the deal. So look, some shareholders 215 00:13:19,280 --> 00:13:22,560 Speaker 1: are excited like you. Some shareholders are skeptical, Natasha lamb 216 00:13:22,559 --> 00:13:25,880 Speaker 1: As I've mentioned, very skeptical about how Elon Musk will 217 00:13:25,920 --> 00:13:29,440 Speaker 1: handle free speech, human rights, civil rights issues. What do 218 00:13:29,480 --> 00:13:36,240 Speaker 1: you think about those more nuanced and very complicated issues. Well, 219 00:13:36,280 --> 00:13:39,000 Speaker 1: I think that it's silly to think that Elon musk 220 00:13:39,160 --> 00:13:41,520 Speaker 1: is new job is going to be the arbitrator of 221 00:13:41,640 --> 00:13:44,480 Speaker 1: free speech on Twitter. That's not his call in taking 222 00:13:44,480 --> 00:13:46,600 Speaker 1: over the company. I think what he's trying to do 223 00:13:46,640 --> 00:13:50,400 Speaker 1: is put in a management team and a transparent system 224 00:13:50,840 --> 00:13:54,480 Speaker 1: so that the users of Twitter fully understand what in 225 00:13:54,880 --> 00:13:58,120 Speaker 1: what isn't allowed on the platform. What I think most 226 00:13:58,120 --> 00:14:01,160 Speaker 1: people are upset about, including myself, with Twitter, is just 227 00:14:01,200 --> 00:14:04,080 Speaker 1: the sort of arbitrary nature that decisions are made and 228 00:14:04,120 --> 00:14:07,360 Speaker 1: the lack of transparency. And I think by bringing transparency, 229 00:14:07,400 --> 00:14:11,080 Speaker 1: which He's already been pushing really hard on Twitter, at 230 00:14:11,120 --> 00:14:14,559 Speaker 1: Twitter to get more transparency, I think will be very 231 00:14:14,600 --> 00:14:18,720 Speaker 1: beneficial for the users of Twitter. Now, interestingly, we heard 232 00:14:18,720 --> 00:14:23,040 Speaker 1: parag agerol weiterate the company's mission to serve a diversity 233 00:14:23,080 --> 00:14:26,280 Speaker 1: of views. But earlier this month, Elon Musk announced that 234 00:14:26,320 --> 00:14:29,360 Speaker 1: he will be voting Republican. How does that strike you? 235 00:14:29,760 --> 00:14:33,360 Speaker 1: Is that good for Twitter? You know, Elon and I 236 00:14:33,400 --> 00:14:36,560 Speaker 1: are in the same camp here. We're both ex Democrats, 237 00:14:36,600 --> 00:14:39,480 Speaker 1: and I'm never going to be a Republican because I 238 00:14:39,520 --> 00:14:42,520 Speaker 1: can't stand them. But but you know, I'm I've become 239 00:14:42,560 --> 00:14:44,640 Speaker 1: an independent voter, and I think what Ellen is saying 240 00:14:44,720 --> 00:14:47,240 Speaker 1: is true. I worked very very hard to get Joe 241 00:14:47,280 --> 00:14:49,920 Speaker 1: Biden and as president, and I'm a very big believer 242 00:14:50,240 --> 00:14:55,880 Speaker 1: in the values that the Democrats represent, and they've achieved nothing. 243 00:14:56,120 --> 00:14:58,960 Speaker 1: They've achieved none of the agenda that they set out 244 00:14:59,000 --> 00:15:03,920 Speaker 1: to achieve, and they've really disappointed big supporters like myself 245 00:15:03,920 --> 00:15:07,720 Speaker 1: and especially entrepreneurs who they've attacked and constantly saying that 246 00:15:07,760 --> 00:15:10,640 Speaker 1: we don't pay our fair share when we do. And 247 00:15:10,720 --> 00:15:14,040 Speaker 1: so it's just they've pushed the do you know, especially 248 00:15:14,200 --> 00:15:17,960 Speaker 1: successful entrepreneurs of the out of the Democratic Party and 249 00:15:18,160 --> 00:15:21,160 Speaker 1: and I'm one of them too. Well, speaking about a 250 00:15:21,200 --> 00:15:24,360 Speaker 1: big time entrepreneur who is now out at Twitter, Jack Dorsey, 251 00:15:24,440 --> 00:15:27,480 Speaker 1: the era of Jack Dorsey is officially over. We knew 252 00:15:27,480 --> 00:15:29,840 Speaker 1: this was coming. No formal role at the company now, 253 00:15:29,880 --> 00:15:31,520 Speaker 1: but you know, we can assume he will still have 254 00:15:31,560 --> 00:15:34,560 Speaker 1: some influence. His tweets will carry some influence. What do 255 00:15:34,560 --> 00:15:39,480 Speaker 1: you think is the significance of Jack leaving? Well, I 256 00:15:39,520 --> 00:15:44,040 Speaker 1: think he'll be back. I think he'll be back. Well, 257 00:15:44,080 --> 00:15:47,000 Speaker 1: I think he's going to I think he's in with 258 00:15:47,040 --> 00:15:49,360 Speaker 1: this Zelon stuff. I mean, I would be surprised if 259 00:15:49,360 --> 00:15:52,720 Speaker 1: he's not working with Elon at all. Um, he seems 260 00:15:52,760 --> 00:15:55,280 Speaker 1: to be on Twitter, you know, sort of jumping on 261 00:15:55,360 --> 00:15:57,920 Speaker 1: the arguments that Elon's are making and seem to be 262 00:15:57,960 --> 00:16:03,120 Speaker 1: defending Elon's positions. Um, So I'm not really sure what's 263 00:16:03,160 --> 00:16:06,000 Speaker 1: next for Jack Um, I think he's really focused on Square, 264 00:16:06,040 --> 00:16:08,360 Speaker 1: which as a Square shareholder, I want him to be, 265 00:16:08,800 --> 00:16:12,800 Speaker 1: and I think he'll play a role in the new Twitter. Meantime, 266 00:16:12,960 --> 00:16:16,680 Speaker 1: silver Lakes Egon Durbin didn't get enough votes. Shareholders did 267 00:16:16,720 --> 00:16:19,400 Speaker 1: not re elect him to the board. What's your reaction 268 00:16:19,440 --> 00:16:25,040 Speaker 1: to that. Um, it's hard to understand, you know, why 269 00:16:25,120 --> 00:16:27,360 Speaker 1: certain shareholders are on the board and not on the board, 270 00:16:27,440 --> 00:16:29,520 Speaker 1: especially when they have large states in the company where 271 00:16:29,520 --> 00:16:32,880 Speaker 1: that might have changed. UM. So, you know, I find 272 00:16:32,880 --> 00:16:35,720 Speaker 1: that to be significant because silver Lake is a major player. 273 00:16:36,080 --> 00:16:38,760 Speaker 1: But I think it has to do with the changing 274 00:16:38,880 --> 00:16:42,120 Speaker 1: nature of what's going on. So there might be some 275 00:16:42,160 --> 00:16:45,760 Speaker 1: conflicts of interests involved as well. Maybe they're involved with 276 00:16:45,800 --> 00:16:48,120 Speaker 1: the new takeover, so they don't want to have a 277 00:16:48,120 --> 00:16:50,000 Speaker 1: conflict by having somebody on the board. So it's just 278 00:16:50,040 --> 00:16:52,560 Speaker 1: really hard to tell why these moves are being made. 279 00:16:53,480 --> 00:16:57,160 Speaker 1: Meta also held its shareholder meeting today. Peter Till no 280 00:16:57,280 --> 00:16:59,920 Speaker 1: longer on the board there, so that's also the end 281 00:17:00,160 --> 00:17:02,720 Speaker 1: of an era. He's going to work more on the 282 00:17:02,760 --> 00:17:05,680 Speaker 1: Trump agenda. I'm curious for your thoughts on Twitter versus Facebook. 283 00:17:05,680 --> 00:17:07,600 Speaker 1: I know you don't you don't you have a miniscule 284 00:17:07,640 --> 00:17:11,560 Speaker 1: position in Facebook, you know, also versus Snap, especially given 285 00:17:12,280 --> 00:17:15,080 Speaker 1: social media stocks getting pummeled and Snap coming out saying 286 00:17:15,080 --> 00:17:19,240 Speaker 1: they're gonna miss their guidance, right, And We've spent a 287 00:17:19,320 --> 00:17:22,000 Speaker 1: good day looking at Snap and I have friends that Snap, 288 00:17:22,080 --> 00:17:23,359 Speaker 1: so you know, I was trying to figure out what 289 00:17:23,400 --> 00:17:25,720 Speaker 1: the hell is going on there, And these are three 290 00:17:25,800 --> 00:17:28,600 Speaker 1: different stories and I think that they're playing out differently. 291 00:17:28,640 --> 00:17:31,119 Speaker 1: So Snap is just getting eaten by TikTok. You know, 292 00:17:31,240 --> 00:17:33,560 Speaker 1: there's not much more to it. TikTok is like a 293 00:17:34,320 --> 00:17:39,320 Speaker 1: vacuum of young people's eyeballs and it's just Snapchat hasn't 294 00:17:39,359 --> 00:17:41,520 Speaker 1: been able to compete and there's nothing more to it 295 00:17:41,560 --> 00:17:44,720 Speaker 1: than that. Meta and you know, Facebook and Instagram are 296 00:17:44,720 --> 00:17:49,679 Speaker 1: also suffering from the TikTok thing and the Apple privacy changes, 297 00:17:49,920 --> 00:17:54,000 Speaker 1: which are really affecting Instagram and Facebook um and their targeting, 298 00:17:54,000 --> 00:17:57,440 Speaker 1: but also a lot of ad you know, people are saying, hey, 299 00:17:57,560 --> 00:17:59,199 Speaker 1: you know, you need to boot some of your instament 300 00:17:59,320 --> 00:18:02,199 Speaker 1: grand budget to TikTok, and that's what's happening. So that 301 00:18:02,240 --> 00:18:06,040 Speaker 1: puts pressure on Facebook and Meta not to mention, you know, 302 00:18:06,080 --> 00:18:08,320 Speaker 1: there really hasn't been any innovation there in a long time, 303 00:18:08,320 --> 00:18:11,800 Speaker 1: and the younger generation isn't using Facebook. And then with Twitter, 304 00:18:12,280 --> 00:18:15,040 Speaker 1: it's really, to me the news, so it serves a 305 00:18:15,040 --> 00:18:19,639 Speaker 1: completely different demographic than the Snapchat, Instagram, Facebook demo, and 306 00:18:19,680 --> 00:18:22,800 Speaker 1: it really serves people who are looking for information, and therefore, 307 00:18:22,960 --> 00:18:25,960 Speaker 1: to me, it's a much more powerful and valuable platform. 308 00:18:26,320 --> 00:18:30,119 Speaker 1: And in fact, Twitter is probably the most valuable you know, 309 00:18:30,359 --> 00:18:33,879 Speaker 1: information platform you know in the world, and if you 310 00:18:33,880 --> 00:18:38,480 Speaker 1: look at the depth of the global leaders and users, um, 311 00:18:38,520 --> 00:18:41,760 Speaker 1: there really is nothing like it. And as an investor, 312 00:18:41,880 --> 00:18:44,719 Speaker 1: I I can't even imagine trying to be an investor 313 00:18:44,760 --> 00:18:48,080 Speaker 1: and not used Twitter. So I think Twitter has a 314 00:18:48,119 --> 00:18:51,720 Speaker 1: lot more intrinsic value than the other platforms. All right, 315 00:18:52,359 --> 00:18:56,120 Speaker 1: Les Garber, President and CEO of Gerbert Kawasaki, always love 316 00:18:56,320 --> 00:19:00,000 Speaker 1: having your views here, Ross, Thank you. Coming up, Twitter, 317 00:19:00,359 --> 00:19:02,400 Speaker 1: as we said, not the only one holding its shareholder 318 00:19:02,440 --> 00:19:05,160 Speaker 1: meeting today, Meta as well and Amazon. It was Andy 319 00:19:05,240 --> 00:19:08,399 Speaker 1: Jase's first as CEO. Will get an update on how 320 00:19:08,400 --> 00:19:25,000 Speaker 1: it all went down. Next. This is Bloomberg Amazon also 321 00:19:25,160 --> 00:19:28,120 Speaker 1: holding its annual shareholder meeting, the first for CEO Andy Jase. 322 00:19:28,240 --> 00:19:30,680 Speaker 1: I'm joined now by Bloomberg Spencer Soaper, who of course 323 00:19:30,680 --> 00:19:33,879 Speaker 1: covers Amazon for Spencer, what were the big takeaways and 324 00:19:33,880 --> 00:19:38,159 Speaker 1: Andy Jase's responses to some of these resolutions, Well, the 325 00:19:38,560 --> 00:19:42,440 Speaker 1: UH a big one. There were several regarding worker treatment 326 00:19:42,880 --> 00:19:46,280 Speaker 1: and Jesse really had to respond to that and just 327 00:19:47,000 --> 00:19:51,040 Speaker 1: these high injury rates. Amazon was hiring a lot of 328 00:19:51,080 --> 00:19:54,080 Speaker 1: people through the pandemic, and Jesse was trying to explain 329 00:19:54,119 --> 00:19:55,359 Speaker 1: that there are a lot of them are new to 330 00:19:55,480 --> 00:19:59,639 Speaker 1: industrial work environments. Therefore injury rates climbed even though Amazon 331 00:19:59,720 --> 00:20:02,560 Speaker 1: made the pledged to UH, you know, to make it 332 00:20:02,880 --> 00:20:04,760 Speaker 1: you know, the best place to work and to to 333 00:20:04,840 --> 00:20:08,119 Speaker 1: really target reducing the injury rates. So he's definitely like 334 00:20:08,160 --> 00:20:10,280 Speaker 1: trying to buy some time there by explaining the unique 335 00:20:10,320 --> 00:20:13,520 Speaker 1: circumstances around the pandemic. Then there was also an advisory 336 00:20:13,600 --> 00:20:16,639 Speaker 1: vote on pay and it was a big deal because 337 00:20:16,720 --> 00:20:19,840 Speaker 1: you have Jasse, who was promoted into this role as CEO, 338 00:20:20,040 --> 00:20:22,440 Speaker 1: is you know, not not someone who built the company himself, 339 00:20:22,480 --> 00:20:26,960 Speaker 1: but was you know, promoted into succeed Jeff Bezos. Um. 340 00:20:27,000 --> 00:20:33,439 Speaker 1: You know, some influential advisory firms saying that Jesse and 341 00:20:33,480 --> 00:20:37,320 Speaker 1: to other executives, their pay is not linked strongly enough 342 00:20:37,359 --> 00:20:39,280 Speaker 1: to company performance. They want to see if they're going 343 00:20:39,320 --> 00:20:41,640 Speaker 1: to be paid substantial amounts of money that it better 344 00:20:41,680 --> 00:20:44,399 Speaker 1: be more more directly tied to the performance of the company. 345 00:20:44,440 --> 00:20:48,760 Speaker 1: So quickly on that, you've got Amazon shares dipping nearly 346 00:20:48,800 --> 00:20:52,080 Speaker 1: below a trillion dollars UH in market cap. How concerned 347 00:20:52,080 --> 00:20:55,760 Speaker 1: our shareholders about that? Quickly? That did come up uh 348 00:20:55,800 --> 00:20:58,800 Speaker 1: and Jasse addressed it. And one of the questions shareholders 349 00:20:58,920 --> 00:21:01,159 Speaker 1: shareholders had was he know, you're you're firing in so 350 00:21:01,160 --> 00:21:03,520 Speaker 1: many directions, You've got so many things going on. You 351 00:21:03,520 --> 00:21:05,600 Speaker 1: know what if you're more focused with that make the 352 00:21:05,600 --> 00:21:09,359 Speaker 1: company more profitable. And Jesse's response to that was, you know, 353 00:21:09,400 --> 00:21:11,960 Speaker 1: we'll look at we had Amazon Web Services and when 354 00:21:11,960 --> 00:21:15,600 Speaker 1: it was in its gestational period and infancy stage, you know, 355 00:21:15,600 --> 00:21:17,600 Speaker 1: people were very critical of that or had a lot 356 00:21:17,600 --> 00:21:19,679 Speaker 1: of questions about that sort as a big gamble, and 357 00:21:19,720 --> 00:21:22,280 Speaker 1: we turned into this huge, you know, multibillion dollar business. 358 00:21:22,560 --> 00:21:24,040 Speaker 1: So I guess he's trying to make the case that 359 00:21:24,080 --> 00:21:26,840 Speaker 1: you can't afford to not invest in things even when 360 00:21:26,880 --> 00:21:31,000 Speaker 1: even when profitability is down. All right, Bloomberg Expense or soaper, 361 00:21:31,200 --> 00:21:32,920 Speaker 1: thank you for giving us the round up on it. 362 00:21:33,200 --> 00:21:45,160 Speaker 1: Jesse's first a g M Welcome back to Bloomber technology 363 00:21:45,200 --> 00:21:47,760 Speaker 1: and Emily Chang in San Francisco. Get back now to 364 00:21:48,160 --> 00:21:51,240 Speaker 1: the markets and hone in on social media stocks where 365 00:21:51,240 --> 00:21:53,680 Speaker 1: it could take it away. Yes, Emily, well, I'll start 366 00:21:53,720 --> 00:21:55,960 Speaker 1: off with the broader markets, which we did see moving 367 00:21:56,119 --> 00:21:59,400 Speaker 1: higher today, and it was now like one that out performed. 368 00:21:59,400 --> 00:22:00,960 Speaker 1: It was some of you a heavier weight. It's your 369 00:22:01,480 --> 00:22:04,760 Speaker 1: your Amazon, your Tesla, and even your Apple pushing that 370 00:22:04,920 --> 00:22:08,479 Speaker 1: index up higher today. And that impetus that really started 371 00:22:08,520 --> 00:22:10,359 Speaker 1: to come out after those FED minutes. It was this 372 00:22:10,440 --> 00:22:14,359 Speaker 1: idea that maybe Fed policymakers one as aggressive as the 373 00:22:14,440 --> 00:22:17,000 Speaker 1: market was expecting. You didn't see much changes in the 374 00:22:17,040 --> 00:22:19,080 Speaker 1: ten ye yield, but the two year yield has more 375 00:22:19,080 --> 00:22:22,320 Speaker 1: sensitive to FED policy changes. That did take just a 376 00:22:22,400 --> 00:22:24,359 Speaker 1: touch higher. And I also point to the vix that 377 00:22:24,520 --> 00:22:28,280 Speaker 1: is ak that big age. This was lower today and 378 00:22:28,320 --> 00:22:30,080 Speaker 1: this is as we get a bit more of a 379 00:22:30,200 --> 00:22:32,280 Speaker 1: risk on field today. And speaking of risk on you 380 00:22:32,280 --> 00:22:36,320 Speaker 1: mentioned it, Emily, those social media stocks that plunged yesterday, 381 00:22:36,320 --> 00:22:38,320 Speaker 1: we are seeing them get We saw them get a 382 00:22:38,320 --> 00:22:41,479 Speaker 1: big bid today, Snap actually bouncing back up some nearly 383 00:22:41,560 --> 00:22:44,639 Speaker 1: eleven percent. But we know that these stocks behind me, 384 00:22:44,680 --> 00:22:46,760 Speaker 1: I mean, perhaps investors thought they were a little bit 385 00:22:46,760 --> 00:22:49,800 Speaker 1: oversold yesterday and they're swooping in on some bargains, but 386 00:22:49,920 --> 00:22:51,840 Speaker 1: on a year today basis, they've all been down in 387 00:22:51,880 --> 00:22:54,879 Speaker 1: the double digits. It's concerns of a slowdown what that 388 00:22:54,920 --> 00:22:58,240 Speaker 1: means for ad revenues. But it isn't Emily just social 389 00:22:58,280 --> 00:23:02,280 Speaker 1: media companies that are stuffed ring this year. That's represented 390 00:23:02,320 --> 00:23:05,160 Speaker 1: by the orange line there on my chart. They're down 391 00:23:05,200 --> 00:23:08,199 Speaker 1: some thirty seven on a year to date basis, but 392 00:23:08,240 --> 00:23:10,800 Speaker 1: it's also your Spack Index, it's also your I p 393 00:23:10,920 --> 00:23:13,479 Speaker 1: O Index, it's also the r g TF and then 394 00:23:13,520 --> 00:23:16,640 Speaker 1: that's that Golden Dragon Index, which houses Chinese tech. Arguably 395 00:23:16,640 --> 00:23:19,640 Speaker 1: has its own regulation challenges, but you can see clearly 396 00:23:19,880 --> 00:23:23,920 Speaker 1: investors shunning some sort of speculative or more risky assets 397 00:23:23,920 --> 00:23:26,760 Speaker 1: and honing in on some of those relatively more safe 398 00:23:26,760 --> 00:23:31,040 Speaker 1: place Emily alright, Ritica, thank you. And while we did 399 00:23:31,080 --> 00:23:34,040 Speaker 1: see that slight rebound in social media and tech stocks 400 00:23:34,040 --> 00:23:36,320 Speaker 1: and general, big concerns still looming about the future of 401 00:23:36,320 --> 00:23:39,399 Speaker 1: digital ads. Joined now by Mark Mahaney's senior managing director 402 00:23:39,440 --> 00:23:42,199 Speaker 1: and head of the Internet research team at evercre Mark. Yes, 403 00:23:42,240 --> 00:23:44,800 Speaker 1: Snap bounced back a little bit today, but remember they 404 00:23:44,880 --> 00:23:49,399 Speaker 1: lost for yesterday so regained about about ten percent of 405 00:23:49,480 --> 00:23:53,919 Speaker 1: that today. You know, how concerned are you about Snap? 406 00:23:54,840 --> 00:23:58,040 Speaker 1: I think I share most of the market's concerns. The 407 00:23:58,119 --> 00:24:00,320 Speaker 1: open question is how much of this is mac growth, 408 00:24:00,400 --> 00:24:03,560 Speaker 1: which is impacting all which therefore impacts a whole bunch 409 00:24:03,600 --> 00:24:05,920 Speaker 1: of these names were particularly ad names, and how much 410 00:24:05,920 --> 00:24:08,399 Speaker 1: of this is Snap specific. And I guess I started 411 00:24:08,400 --> 00:24:10,639 Speaker 1: off thinking this was largely macro. I was taking the 412 00:24:10,720 --> 00:24:14,120 Speaker 1: company at at face value. Um, But you know, there 413 00:24:14,160 --> 00:24:16,200 Speaker 1: is a track record here and this company has had 414 00:24:16,600 --> 00:24:19,840 Speaker 1: a couple of surprises along the way, including in the 415 00:24:19,920 --> 00:24:22,919 Speaker 1: September quarter last year when they had said they wouldn't 416 00:24:22,920 --> 00:24:25,000 Speaker 1: have any impact from Apple and then they said they did. 417 00:24:25,600 --> 00:24:27,960 Speaker 1: So there's a bit of a there's a bit there's 418 00:24:27,960 --> 00:24:30,840 Speaker 1: a greater credibility issue here at Snap. Now. I assume 419 00:24:30,960 --> 00:24:33,520 Speaker 1: that they are seeing a lot of macro pressures. This 420 00:24:33,640 --> 00:24:35,840 Speaker 1: company has a lot of exposure to brand advertising that 421 00:24:35,880 --> 00:24:38,240 Speaker 1: would be the first to get cut in a recession. 422 00:24:38,800 --> 00:24:42,360 Speaker 1: They also have substantial exposure to Europe, which I think 423 00:24:42,359 --> 00:24:44,480 Speaker 1: is a reasonably one could reasonably assume that's going to 424 00:24:44,560 --> 00:24:47,800 Speaker 1: see pressure first before the US does. So a lot 425 00:24:47,800 --> 00:24:49,800 Speaker 1: of what they're seeing probably is a broader read due 426 00:24:49,880 --> 00:24:51,840 Speaker 1: to add names. But you know, this is a couple 427 00:24:51,840 --> 00:24:54,679 Speaker 1: of times that this has happened, so maybe it's not 428 00:24:54,760 --> 00:24:57,240 Speaker 1: terribly surprising this doc gets taken down more than the 429 00:24:57,280 --> 00:24:59,919 Speaker 1: other ad names. So how much of this could be 430 00:25:00,080 --> 00:25:05,480 Speaker 1: TikTok eating snaps lunch specifically? Look, you you're asking the 431 00:25:05,560 --> 00:25:08,000 Speaker 1: right question. If it isn't mackerel, what could it be? 432 00:25:08,119 --> 00:25:10,240 Speaker 1: Or if in addition to Mackerel, what are the other 433 00:25:10,280 --> 00:25:12,879 Speaker 1: could what could other factors could there be? Um, it 434 00:25:12,920 --> 00:25:16,080 Speaker 1: could be TikTok, It could well be ad budgets that 435 00:25:16,240 --> 00:25:19,040 Speaker 1: slipped over to um Snap and awake of the Apple 436 00:25:19,080 --> 00:25:22,879 Speaker 1: privacy changes slipping back to Facebook. Um, it could be 437 00:25:23,440 --> 00:25:27,040 Speaker 1: additional Apple privacy changes. I mean, there's a serious series 438 00:25:27,080 --> 00:25:29,159 Speaker 1: of things that Apple could still do to kind of 439 00:25:29,160 --> 00:25:31,920 Speaker 1: tighten screws on the add ecosystem. That could be having 440 00:25:31,920 --> 00:25:35,119 Speaker 1: an issue on on Snap. And then there could just 441 00:25:35,160 --> 00:25:37,440 Speaker 1: be that this company is much more exposed to brand 442 00:25:37,480 --> 00:25:41,080 Speaker 1: advertising than the market realizes. And again that's the probably 443 00:25:41,119 --> 00:25:43,679 Speaker 1: the part of Internet advertising in a in a in 444 00:25:43,720 --> 00:25:45,919 Speaker 1: a downturn, that gets hit first, and what would get 445 00:25:45,960 --> 00:25:49,320 Speaker 1: had black hit last? With the performance marketing channels of course, Google, 446 00:25:49,440 --> 00:25:51,480 Speaker 1: but a lot of Facebook that would be hit last 447 00:25:51,640 --> 00:25:54,600 Speaker 1: because it's more performance marketing based. So anyway TikTok's an issue, 448 00:25:54,600 --> 00:25:56,560 Speaker 1: There's a couple of these other things that could all 449 00:25:56,560 --> 00:25:59,639 Speaker 1: be kind of piling up on Snap. Now it's just 450 00:25:59,720 --> 00:26:02,399 Speaker 1: us surprised to have that guidance change in just a 451 00:26:02,440 --> 00:26:05,080 Speaker 1: month period. So it's probably macro, but it could well 452 00:26:05,119 --> 00:26:07,960 Speaker 1: be a few other factors. So there's a big question 453 00:26:07,960 --> 00:26:10,320 Speaker 1: what this means for other social media companies, even though 454 00:26:10,320 --> 00:26:13,960 Speaker 1: they're all in the middle of some fairly different narratives. Twitter, 455 00:26:14,240 --> 00:26:17,199 Speaker 1: for example, just wrapping their a g M today. You know, 456 00:26:17,280 --> 00:26:20,840 Speaker 1: no vote on Elon Musk, but of course, you know 457 00:26:21,359 --> 00:26:26,640 Speaker 1: concerns excitement about the deal looming large over that meeting today. 458 00:26:26,680 --> 00:26:29,000 Speaker 1: You know, what's your take on what direction this is 459 00:26:29,000 --> 00:26:31,920 Speaker 1: gonna go? We just saw Elon Musk raised his equity 460 00:26:32,000 --> 00:26:38,439 Speaker 1: portion of the deal. Well, I assume he's not going 461 00:26:38,480 --> 00:26:41,359 Speaker 1: to walk away from the deal. I assume that he'd 462 00:26:41,359 --> 00:26:43,320 Speaker 1: love to get a lower price. Whether he can get 463 00:26:43,359 --> 00:26:46,680 Speaker 1: it or not will really come around to whether those 464 00:26:46,720 --> 00:26:50,600 Speaker 1: shareholders that he talked with and I think convinced that 465 00:26:50,920 --> 00:26:53,240 Speaker 1: he would be a good fire of their stock at 466 00:26:53,880 --> 00:26:57,760 Speaker 1: with a price, whether they would be really still willing 467 00:26:57,800 --> 00:27:00,280 Speaker 1: to sell it to him at forty five or forty 468 00:27:00,359 --> 00:27:02,439 Speaker 1: or some lower price. And I don't know who has 469 00:27:02,480 --> 00:27:06,160 Speaker 1: the most leverage in that in that environment. Um, maybe 470 00:27:06,160 --> 00:27:08,040 Speaker 1: he does. I assume he really still wants to have 471 00:27:08,119 --> 00:27:10,399 Speaker 1: this asset, that he really doesn't want to waste a 472 00:27:10,400 --> 00:27:13,760 Speaker 1: billion dollars. And uh, of course I would take Twitter's 473 00:27:14,040 --> 00:27:15,760 Speaker 1: shares down, but I think at the end of the day, 474 00:27:15,760 --> 00:27:18,760 Speaker 1: Elon Musk wants to own Twitter. So my guess is 475 00:27:18,800 --> 00:27:22,080 Speaker 1: that this gets negotiated, maybe at a lower price, or 476 00:27:22,200 --> 00:27:24,159 Speaker 1: we're gonna be spending a lot of time in courts 477 00:27:24,200 --> 00:27:26,960 Speaker 1: for the next year, which would be unfortunate for everybody involved. 478 00:27:28,040 --> 00:27:31,320 Speaker 1: And how insulated do you think Twitter and Facebook are 479 00:27:31,480 --> 00:27:34,480 Speaker 1: from the problems that Snap is facing or are are 480 00:27:34,520 --> 00:27:36,840 Speaker 1: they really in the same boat? Yeah, Emily, I don't 481 00:27:36,840 --> 00:27:38,880 Speaker 1: think they're insulated at all. But I'm sorry, I don't 482 00:27:38,880 --> 00:27:41,800 Speaker 1: think Twitter at all is insulated. I think Twitter has 483 00:27:41,840 --> 00:27:46,080 Speaker 1: got relatively material exposure to Europe, and uh, it's very 484 00:27:46,080 --> 00:27:49,199 Speaker 1: heavily into brand advertising. Again, that's probably the weakest part 485 00:27:49,280 --> 00:27:53,200 Speaker 1: of the Internet advertising ecosystem, and that's seventy of Twitter's 486 00:27:53,200 --> 00:27:56,760 Speaker 1: total revenue. So if that's what's being hurt at, and 487 00:27:56,880 --> 00:27:59,000 Speaker 1: that's what's taking down Snap. It would be taking on 488 00:27:59,119 --> 00:28:01,640 Speaker 1: Twitter in dro of. I think there's also probably gonna 489 00:28:01,640 --> 00:28:03,680 Speaker 1: be a lot of dislocation and Twitter, well, this was 490 00:28:03,720 --> 00:28:05,760 Speaker 1: a hostile takeover. What do you expect? I mean, you 491 00:28:05,800 --> 00:28:09,200 Speaker 1: get you disenfranchised, your disincentivized, that's probably the better word. 492 00:28:09,400 --> 00:28:11,960 Speaker 1: A lot of the employees you've had turnover, a lot 493 00:28:11,960 --> 00:28:13,800 Speaker 1: of uncertainty over you know, whether people are going to 494 00:28:13,880 --> 00:28:15,879 Speaker 1: keep their jobs. So of course, almost certainly it's going 495 00:28:15,920 --> 00:28:19,879 Speaker 1: to lead to poorer or less or suboptimal execution, although 496 00:28:19,880 --> 00:28:24,200 Speaker 1: that's gonna pile up and probably hurt Twitter's fundamentals near term. Anyway, 497 00:28:24,280 --> 00:28:26,760 Speaker 1: this doesn't help what the issues that Snap talks about. 498 00:28:27,040 --> 00:28:29,680 Speaker 1: If in fact they are seeing loss of ad budgets 499 00:28:29,680 --> 00:28:32,800 Speaker 1: to Twitter, if they're seeing macro pressure on their display advertising. 500 00:28:32,960 --> 00:28:35,200 Speaker 1: Twitter is going to see all of that. Facebook much 501 00:28:35,280 --> 00:28:37,000 Speaker 1: less so, but they'll see a smidgen of that, and 502 00:28:37,040 --> 00:28:39,800 Speaker 1: Google the least of all those. But just remember, go 503 00:28:39,880 --> 00:28:43,080 Speaker 1: through these major recessions. You and I watched this. Google 504 00:28:43,120 --> 00:28:46,240 Speaker 1: went uh growth rate crater to only three percent year 505 00:28:46,240 --> 00:28:48,560 Speaker 1: of rear during a great financial crisis, and then during 506 00:28:48,560 --> 00:28:51,800 Speaker 1: the COVID quarter it went negative. So Google is not 507 00:28:51,880 --> 00:28:55,200 Speaker 1: immune to you know, full blown advertising recession. Well, and 508 00:28:55,280 --> 00:28:58,160 Speaker 1: let's talk about another big tech company where you know, 509 00:28:58,200 --> 00:29:00,959 Speaker 1: the gains from the pandemic have been completely erased, and 510 00:29:01,000 --> 00:29:05,120 Speaker 1: that is Amazon. We're seeing Amazon's market cap get close 511 00:29:05,240 --> 00:29:08,880 Speaker 1: back to that one chillion dollar mark. Amazon also holding 512 00:29:08,920 --> 00:29:13,320 Speaker 1: their annual shareholder reading today. It's Andy Joss's first one 513 00:29:13,840 --> 00:29:16,520 Speaker 1: at the helm. You know what we are takeaways from 514 00:29:16,560 --> 00:29:20,760 Speaker 1: what we heard there, and you know whether Amazon can 515 00:29:20,800 --> 00:29:24,240 Speaker 1: turn it around. The one I'm sure Amazon can turn 516 00:29:24,280 --> 00:29:25,960 Speaker 1: it around. I look at Amazon is kind of what 517 00:29:26,000 --> 00:29:28,640 Speaker 1: I call a d h Q dislocated high quality stock. 518 00:29:29,240 --> 00:29:32,480 Speaker 1: It's the most successfully diversified tech asset that I followed. 519 00:29:32,560 --> 00:29:37,440 Speaker 1: I don't follow Apple, but it's the most successfully diversified 520 00:29:37,440 --> 00:29:40,479 Speaker 1: in terms of advertising, cloud, retail, and then I think 521 00:29:40,480 --> 00:29:42,600 Speaker 1: there's a couple of other targets that they can go after, 522 00:29:42,960 --> 00:29:45,920 Speaker 1: including logistics and business supplies, et cetera. And I think 523 00:29:45,920 --> 00:29:48,280 Speaker 1: groceries that probably falls into retail, but I think I 524 00:29:48,280 --> 00:29:50,120 Speaker 1: think that's a new that's a that's a big area 525 00:29:50,160 --> 00:29:52,280 Speaker 1: for them. So I'm not worried about the long term 526 00:29:52,280 --> 00:29:54,840 Speaker 1: outlook really for Amazon. I think they can execute their way. 527 00:29:54,840 --> 00:29:56,840 Speaker 1: I think they've got some good growth initiatives that the 528 00:29:56,920 --> 00:29:58,880 Speaker 1: nuance I picked up from today at least from the 529 00:29:58,880 --> 00:30:01,440 Speaker 1: headlines and we have them all up yet is the 530 00:30:01,480 --> 00:30:04,960 Speaker 1: focus on cost efficiencies and so yeah, I think the 531 00:30:05,000 --> 00:30:08,800 Speaker 1: company um company did something where I don't recall Emily 532 00:30:08,880 --> 00:30:12,640 Speaker 1: Amazon ever coming out and saying we overbuilt. But that's 533 00:30:12,640 --> 00:30:15,160 Speaker 1: what they said on the March quarter earnings call that 534 00:30:15,240 --> 00:30:18,240 Speaker 1: they that they made it a mistake and they over 535 00:30:18,320 --> 00:30:22,160 Speaker 1: extrapolated when they were making their CAPEX plans, their distribution 536 00:30:22,200 --> 00:30:24,600 Speaker 1: center build up plans at the end of twenty and 537 00:30:24,640 --> 00:30:27,800 Speaker 1: beginning of twenty one, the over extrapolated trends. I don't 538 00:30:27,800 --> 00:30:29,520 Speaker 1: blame it for doing that. I think I probably did 539 00:30:29,560 --> 00:30:31,600 Speaker 1: that too. I think the market obviously did that too. 540 00:30:31,680 --> 00:30:34,320 Speaker 1: But Amazon did that, and now they've got excess capacity, 541 00:30:34,360 --> 00:30:36,800 Speaker 1: both on the labor force side and on the physical 542 00:30:36,800 --> 00:30:39,240 Speaker 1: plant side. And the investor question is how long will 543 00:30:39,280 --> 00:30:41,880 Speaker 1: it take you to work through that? And will what 544 00:30:42,080 --> 00:30:44,320 Speaker 1: if we're going into recession, Well, that's just gonna make 545 00:30:44,360 --> 00:30:46,920 Speaker 1: that that that that could pass utilization build back up 546 00:30:47,240 --> 00:30:50,600 Speaker 1: time longer and longer. But I think they'll get through this, 547 00:30:50,840 --> 00:30:53,160 Speaker 1: and and I think if I look at the stock 548 00:30:53,280 --> 00:30:55,520 Speaker 1: right now. You're a long term investor, not a trader, 549 00:30:55,520 --> 00:30:58,400 Speaker 1: but an investor that you should be buying at least 550 00:30:58,440 --> 00:31:02,600 Speaker 1: taking partial positions in Amazon on here today. Well, certainly 551 00:31:02,640 --> 00:31:05,160 Speaker 1: it will be interesting to watch how Andy Dasey steers 552 00:31:05,160 --> 00:31:07,600 Speaker 1: this ship. E recours at Mark Mahaney. Always good to 553 00:31:07,600 --> 00:31:21,720 Speaker 1: have you, Mark, Thank you. We're probably going to hit 554 00:31:21,800 --> 00:31:24,800 Speaker 1: eight thousand dollars before what was that number? Eight thousand 555 00:31:24,920 --> 00:31:29,640 Speaker 1: until we totally flush. I mean, if I were I'd 556 00:31:29,640 --> 00:31:33,000 Speaker 1: be short. Could Bitcoin follow as low as eight thousand dollars? 557 00:31:33,000 --> 00:31:36,440 Speaker 1: That was Googenheim Partners chief investment officer Scott Minored. They're 558 00:31:36,480 --> 00:31:39,200 Speaker 1: speaking in Davos. He's a known skeptic on crypto, though 559 00:31:39,200 --> 00:31:40,800 Speaker 1: at one point a couple of years ago, he was 560 00:31:40,840 --> 00:31:46,000 Speaker 1: optimistic enough to predict bitcoin would hit four hundred thousand dollars. 561 00:31:46,000 --> 00:31:47,960 Speaker 1: Of course we're still far from that. I want to 562 00:31:47,960 --> 00:31:50,640 Speaker 1: bring into well Atchison now for her perspective. She's the 563 00:31:50,640 --> 00:31:53,800 Speaker 1: head of market insights at Genesis Trading, a digital currency 564 00:31:54,000 --> 00:31:57,760 Speaker 1: prime broker. Noel, what do you think eight thousand dollars? 565 00:31:57,800 --> 00:32:01,000 Speaker 1: What's going to come first? That? Or four hundred? Well 566 00:32:01,080 --> 00:32:03,640 Speaker 1: between eight and four there's certainly quite a right range. 567 00:32:03,680 --> 00:32:05,880 Speaker 1: I think you know the saying, if you're going to predict, 568 00:32:06,120 --> 00:32:09,160 Speaker 1: predict with very wide ranges. Right. Thank you so much 569 00:32:09,160 --> 00:32:11,240 Speaker 1: for having him. I do have to say that anything 570 00:32:11,240 --> 00:32:13,240 Speaker 1: I say or my opinions not those of my employer, 571 00:32:13,400 --> 00:32:16,320 Speaker 1: and of course nothing I say is investment advice. And 572 00:32:16,320 --> 00:32:18,600 Speaker 1: first of all, huge respect to Mr Minard. He was 573 00:32:18,640 --> 00:32:21,320 Speaker 1: one of the first institutional investors, one of the early 574 00:32:21,360 --> 00:32:23,560 Speaker 1: ones to look at bitcoin, and he did do his 575 00:32:23,640 --> 00:32:25,880 Speaker 1: homework back in the day. But later on in this 576 00:32:25,960 --> 00:32:28,120 Speaker 1: interview that you showed a part of, he did say 577 00:32:28,160 --> 00:32:31,320 Speaker 1: that his predictions of eight thousand was based on technicals 578 00:32:31,320 --> 00:32:34,120 Speaker 1: because there's nothing else like more or less quote there, 579 00:32:34,440 --> 00:32:38,959 Speaker 1: and that is overlooking the growing adoption and the fixed supply. 580 00:32:39,200 --> 00:32:41,480 Speaker 1: This is something that many people tend to forget that 581 00:32:41,840 --> 00:32:45,400 Speaker 1: no matter how high the bitcoin price, for how large 582 00:32:45,440 --> 00:32:49,920 Speaker 1: the demand, the supply remains fixed. That's a fundamental feature 583 00:32:50,000 --> 00:32:53,840 Speaker 1: right there. Bitcoins demand, which is growing could multiply by 584 00:32:53,880 --> 00:32:57,240 Speaker 1: a thousand times the suppliable and rain fixed. Its price 585 00:32:57,280 --> 00:32:59,840 Speaker 1: could go up by tech x the suppliable raine fixed. 586 00:33:00,080 --> 00:33:02,400 Speaker 1: That's a pretty compelling investment case right there. On me, 587 00:33:04,040 --> 00:33:07,040 Speaker 1: I want to ask you about some of the wreckage. 588 00:33:08,040 --> 00:33:12,320 Speaker 1: In the wake of this terror disaster, they now have 589 00:33:12,600 --> 00:33:15,080 Speaker 1: a new plan that's been approved to split the Terror 590 00:33:15,160 --> 00:33:20,640 Speaker 1: blockchain into Terror Classic and Luna Classic. What do you 591 00:33:20,760 --> 00:33:23,840 Speaker 1: make of this as a path forward? Well, you can 592 00:33:23,880 --> 00:33:27,120 Speaker 1: imagine crypto Twitter today is having a field day with this. 593 00:33:27,480 --> 00:33:31,400 Speaker 1: I must say that anything that gives those that lost 594 00:33:31,480 --> 00:33:33,719 Speaker 1: a lot of money a chance to get some of 595 00:33:33,760 --> 00:33:37,040 Speaker 1: that money back should be entertained. I mean that would 596 00:33:37,120 --> 00:33:39,720 Speaker 1: be a very good development. That said, a lot of 597 00:33:39,760 --> 00:33:42,320 Speaker 1: trust has been broken here, a lot of trust needs 598 00:33:42,320 --> 00:33:44,080 Speaker 1: to be recovered, which is how many when you come 599 00:33:44,080 --> 00:33:46,479 Speaker 1: to think of it, it it is quite ironic that trust 600 00:33:46,600 --> 00:33:51,840 Speaker 1: is still such a firm component of a system that 601 00:33:52,000 --> 00:33:55,120 Speaker 1: was designed to not need centralized trust to be able 602 00:33:55,160 --> 00:33:58,280 Speaker 1: to have a decentralized trust mechanism. Shows that we can't 603 00:33:58,320 --> 00:34:02,040 Speaker 1: get rid of the trust component after all. Well, so 604 00:34:02,280 --> 00:34:05,920 Speaker 1: I wonder what the path forward is then? Also for regulators, 605 00:34:05,920 --> 00:34:07,840 Speaker 1: we know that the house can be on financial services 606 00:34:07,920 --> 00:34:10,920 Speaker 1: is going to be talking about digital assets. For example, 607 00:34:11,000 --> 00:34:15,840 Speaker 1: could up FED you know, FED central bank digital dollar 608 00:34:16,440 --> 00:34:20,879 Speaker 1: so to is bay possible? It's certainly possible, and in fact, 609 00:34:20,880 --> 00:34:23,000 Speaker 1: in some parts of the world we already are seeing 610 00:34:23,120 --> 00:34:26,080 Speaker 1: central bank digital currencies, and my opinion is that yes, 611 00:34:26,120 --> 00:34:28,960 Speaker 1: we will see central bank digital currencies be quite commonplace 612 00:34:29,320 --> 00:34:32,799 Speaker 1: within five years, and the form that this will take 613 00:34:32,880 --> 00:34:37,520 Speaker 1: is still being hotly debated. It has many potential efficiency features, 614 00:34:37,520 --> 00:34:39,640 Speaker 1: there are also some risks. We need to be careful. 615 00:34:39,960 --> 00:34:42,160 Speaker 1: But what is most interesting, and going back to what 616 00:34:42,200 --> 00:34:46,080 Speaker 1: you mentioned earlier about the terror implosion, is that this 617 00:34:46,160 --> 00:34:52,000 Speaker 1: will accelerate regulatory clarity not just about crypto assets, but 618 00:34:52,040 --> 00:34:55,920 Speaker 1: about stable coins, their potential use in global trade, their 619 00:34:55,920 --> 00:35:00,080 Speaker 1: potential convenience for consumer services as well. It's a as 620 00:35:00,160 --> 00:35:02,680 Speaker 1: a meeting field and standing here and right in the 621 00:35:02,719 --> 00:35:05,200 Speaker 1: middle of it where it's all happening, watching what is 622 00:35:05,280 --> 00:35:08,120 Speaker 1: arguably one of the most profound transformations of how we 623 00:35:08,239 --> 00:35:13,120 Speaker 1: transact with each other as entities, as individuals, as sovereigns. 624 00:35:13,160 --> 00:35:16,200 Speaker 1: Even it's it's an exciting time to be looking at 625 00:35:16,200 --> 00:35:20,440 Speaker 1: this space now. Someone who is optimistic is Andreas and Harrow. 626 00:35:20,520 --> 00:35:23,680 Speaker 1: If they just announced a record for an half billion 627 00:35:23,719 --> 00:35:26,600 Speaker 1: dollar crypto fune, what do you make of the influence 628 00:35:26,640 --> 00:35:31,240 Speaker 1: that andreason Horowitz has on the cryptos ecosystem. More broadly, 629 00:35:31,400 --> 00:35:34,080 Speaker 1: They've got quite a bit of money at Stakecare. They 630 00:35:34,120 --> 00:35:35,959 Speaker 1: have a lot of money. They have a lot of money, 631 00:35:35,960 --> 00:35:38,800 Speaker 1: and that's their main influence. But what they have announced 632 00:35:38,800 --> 00:35:42,040 Speaker 1: today is a reminder of just how much money is 633 00:35:42,040 --> 00:35:45,680 Speaker 1: still sitting on the sidelines. We've had a frothy time 634 00:35:45,719 --> 00:35:48,200 Speaker 1: of it in the crypto markets recently, certainly not because 635 00:35:48,200 --> 00:35:51,520 Speaker 1: of the price, but valuations have been very high, Hiring 636 00:35:51,560 --> 00:35:55,239 Speaker 1: has been very accelerated. I know of many investors who 637 00:35:55,320 --> 00:35:57,359 Speaker 1: have been accompla with this. They're sitting it out because 638 00:35:57,360 --> 00:35:59,680 Speaker 1: they think the valuations are crazy. I know of many 639 00:35:59,719 --> 00:36:02,720 Speaker 1: and burners that have walked out of initial pitch meetings 640 00:36:03,040 --> 00:36:06,240 Speaker 1: with signed term sheets, and many other investors and itcdotally 641 00:36:06,280 --> 00:36:08,000 Speaker 1: have told me that if they don't come up with 642 00:36:08,040 --> 00:36:09,880 Speaker 1: the term sheet after the first meeting, they're out of 643 00:36:09,920 --> 00:36:12,800 Speaker 1: the deals. That's kind of a crazy time. That's frothy, 644 00:36:12,920 --> 00:36:16,000 Speaker 1: not because of price, Unlike other frothy markets that we've had. 645 00:36:16,160 --> 00:36:18,720 Speaker 1: What happened in the market crash the week of maybe 646 00:36:18,719 --> 00:36:22,160 Speaker 1: eleventh is a cold, cold job of water, a j 647 00:36:22,160 --> 00:36:24,520 Speaker 1: are cold water on the entire system has knocked a 648 00:36:24,600 --> 00:36:27,279 Speaker 1: lot of the froth out. So the vast amount of 649 00:36:27,280 --> 00:36:29,320 Speaker 1: money that has been sitting on the sidelines, but a 650 00:36:29,400 --> 00:36:31,520 Speaker 1: lot of it coming from and recent horrowitz and their 651 00:36:31,520 --> 00:36:35,200 Speaker 1: funds will now have better opportunities in which to invest, 652 00:36:35,280 --> 00:36:36,960 Speaker 1: will be able to take their time and really do 653 00:36:37,040 --> 00:36:40,319 Speaker 1: some due diligence and perhaps be more careful. That's another thing. 654 00:36:40,320 --> 00:36:43,080 Speaker 1: The terror implosion reminded all of us that which we 655 00:36:43,160 --> 00:36:45,600 Speaker 1: do need to be careful and really think things through. 656 00:36:45,640 --> 00:36:48,120 Speaker 1: The regulators also, no doubt, are going to be taking 657 00:36:48,120 --> 00:36:50,560 Speaker 1: a more careful look at some of the stable coins 658 00:36:50,560 --> 00:36:53,759 Speaker 1: and some of the other projects, because protection is part 659 00:36:53,800 --> 00:36:56,960 Speaker 1: of their part of their role. But now that the 660 00:36:57,200 --> 00:36:59,760 Speaker 1: froth seems to have a slightly different tone, I expect 661 00:36:59,840 --> 00:37:02,880 Speaker 1: us to see different kinds of investment deals. There's a 662 00:37:02,880 --> 00:37:05,400 Speaker 1: lot of money out there, a lot of belief in 663 00:37:05,480 --> 00:37:09,480 Speaker 1: the potential of the crypto industry to transform not just finance, 664 00:37:09,520 --> 00:37:12,560 Speaker 1: but many other aspects of our culture, and it's going 665 00:37:12,600 --> 00:37:15,239 Speaker 1: to be exciting. I wonder quickly, and I think about 666 00:37:15,239 --> 00:37:17,799 Speaker 1: a company like micro Strategy, how do you think these 667 00:37:17,840 --> 00:37:22,800 Speaker 1: massive price fluctuations are going to impact institutional sentiment quickly? 668 00:37:24,160 --> 00:37:26,520 Speaker 1: One thing that needs to change is the accounting principles 669 00:37:26,520 --> 00:37:28,960 Speaker 1: for companies like micro Strategy has a very different issue. 670 00:37:29,040 --> 00:37:31,720 Speaker 1: Institutional sentiment has taken a hit, but it is certainly 671 00:37:31,760 --> 00:37:33,640 Speaker 1: not gone away. This is something that we see a 672 00:37:33,719 --> 00:37:35,960 Speaker 1: Genesis every single day. We are still talking to them, 673 00:37:36,040 --> 00:37:38,440 Speaker 1: they are still investing, they are still trading, but a 674 00:37:38,480 --> 00:37:41,040 Speaker 1: bit more caution is definitely the tone that we're seeing. 675 00:37:41,960 --> 00:37:44,879 Speaker 1: All right now, I'll act to send Genesis trading. Thank 676 00:37:44,920 --> 00:37:47,239 Speaker 1: you for sharing your thoughts. Thank you very much. Money 677 00:37:48,320 --> 00:37:52,040 Speaker 1: coming up, the future of AI and keeping people safe 678 00:37:52,520 --> 00:37:56,000 Speaker 1: on the role then promoting fuel efficiency. I'll chat with 679 00:37:56,000 --> 00:38:22,799 Speaker 1: the CEO. Let's trying to make that happen. Let's talk 680 00:38:22,840 --> 00:38:25,200 Speaker 1: now about the future of AI and helping to make 681 00:38:25,360 --> 00:38:30,080 Speaker 1: driving safe. Motive, the tech company formally known as Keep Chucking, 682 00:38:30,280 --> 00:38:33,200 Speaker 1: just raised a new funding round at nearly three billion 683 00:38:33,239 --> 00:38:37,520 Speaker 1: dollar valuation, and it's planning to invest in artificial intelligence capabilities, 684 00:38:37,520 --> 00:38:42,399 Speaker 1: including dash cams that can identify unsafe driving. For more. 685 00:38:42,520 --> 00:38:46,160 Speaker 1: I'm joined by Motive co founder and CEO Showing mccani Showy. 686 00:38:46,239 --> 00:38:47,920 Speaker 1: Thank you so much for joining us, so talk to 687 00:38:48,000 --> 00:38:51,480 Speaker 1: us about how the technology works, specifically the dash cams. 688 00:38:52,320 --> 00:38:54,000 Speaker 1: Thanks for having me. Yeah, it's great to be here. 689 00:38:54,600 --> 00:38:57,880 Speaker 1: Uh So, really a motive our mission is to unlock 690 00:38:58,360 --> 00:39:02,120 Speaker 1: the potential of the physical economy. We we serve industries 691 00:39:02,160 --> 00:39:07,920 Speaker 1: like construction, energy, transportation, agriculture. UH. And what we do 692 00:39:08,040 --> 00:39:12,080 Speaker 1: is we build technology that allows them to improve safety, 693 00:39:12,480 --> 00:39:15,400 Speaker 1: UH and productivity of their operations. One of our products, 694 00:39:15,480 --> 00:39:18,520 Speaker 1: as you mentioned, is the AI dash Camp, which is 695 00:39:18,760 --> 00:39:23,319 Speaker 1: really a market leading technology that helps our customers understand 696 00:39:23,400 --> 00:39:25,800 Speaker 1: how their drivers are performing on the road and actually 697 00:39:25,840 --> 00:39:29,640 Speaker 1: in real time improved driving performance by observing the driver 698 00:39:30,120 --> 00:39:33,560 Speaker 1: and and alerting them of unsafe behaviors. UM. You know, 699 00:39:33,600 --> 00:39:38,080 Speaker 1: in in our analysis, we've we've observed almost a twenty 700 00:39:38,080 --> 00:39:42,319 Speaker 1: two percent reduction in accidents and road fatalities for our 701 00:39:42,360 --> 00:39:45,640 Speaker 1: customers who deploy this technology. Who are your customers and 702 00:39:45,719 --> 00:39:49,200 Speaker 1: one of the growth opportunities you see ahead? Yeah, we 703 00:39:49,200 --> 00:39:52,520 Speaker 1: we we serve really what we call the physical economy. UM. 704 00:39:52,560 --> 00:39:57,120 Speaker 1: These are industries that move things, build stuff, serve customers 705 00:39:57,120 --> 00:40:02,879 Speaker 1: in the physical world, industries like construction, agriculture, transportation, logistics. UH. 706 00:40:02,920 --> 00:40:05,880 Speaker 1: And and really it's a segment of the economy that 707 00:40:05,920 --> 00:40:09,480 Speaker 1: has been underserved from a technology perspective. UM. These industries 708 00:40:09,520 --> 00:40:13,800 Speaker 1: haven't had a modern technology to drive the efficiency gains, 709 00:40:13,880 --> 00:40:17,279 Speaker 1: the productivity gains that are necessary for them to keep 710 00:40:17,360 --> 00:40:21,960 Speaker 1: up with what is a continuously expanding demand for their 711 00:40:21,960 --> 00:40:24,879 Speaker 1: output and so we we built technology that enables these 712 00:40:24,880 --> 00:40:29,760 Speaker 1: businesses to drive. So let's talk about what you're gonna 713 00:40:29,800 --> 00:40:33,560 Speaker 1: do with this funding. You know, do you have expansion 714 00:40:33,600 --> 00:40:38,239 Speaker 1: plans in mind, perhaps beyond the United States? Yeah? We 715 00:40:38,280 --> 00:40:42,399 Speaker 1: well so, so you know, we were definitely investing in growth. Uh, 716 00:40:42,600 --> 00:40:45,719 Speaker 1: monitoring the macro environment and the health of our customers 717 00:40:45,719 --> 00:40:48,760 Speaker 1: closely to make sure that we're taking the right actions 718 00:40:48,880 --> 00:40:50,920 Speaker 1: and make sure we can we can build great products 719 00:40:50,920 --> 00:40:54,480 Speaker 1: for them. But but also uh, you know, react to 720 00:40:54,560 --> 00:40:58,200 Speaker 1: what is it evolving market condition? Uh importantly, you know, 721 00:40:58,239 --> 00:41:02,120 Speaker 1: our customers are facing incredib inflationary pressures. Uh. The cost 722 00:41:02,160 --> 00:41:05,399 Speaker 1: of their inputs is is rising. Uh, and and our 723 00:41:05,440 --> 00:41:09,359 Speaker 1: technology and that sense actually can be fundamentally deflationary. If 724 00:41:09,400 --> 00:41:13,440 Speaker 1: we deliver on our promise of driving safety, productivity, helping 725 00:41:13,440 --> 00:41:16,440 Speaker 1: them actually reduce their fuel costs, their maintenance cost we 726 00:41:16,480 --> 00:41:20,040 Speaker 1: can help these businesses be more efficient and to thrive 727 00:41:20,400 --> 00:41:23,440 Speaker 1: no matter what happens in the macro environment. Um. And 728 00:41:23,480 --> 00:41:26,080 Speaker 1: so so we were very much investing in growth. Uh. 729 00:41:26,120 --> 00:41:29,920 Speaker 1: There's three really key areas that we're doubling down. Number one, 730 00:41:29,960 --> 00:41:33,600 Speaker 1: AI powered automation. We think the source of operating leverage 731 00:41:33,600 --> 00:41:36,759 Speaker 1: for the physical economy is going to come through productivity 732 00:41:36,800 --> 00:41:41,160 Speaker 1: gains that are happy that happens through automation. UM number two. Uh, 733 00:41:41,280 --> 00:41:45,200 Speaker 1: we're investing in fintech. Uh. So we recently launched the 734 00:41:45,239 --> 00:41:48,800 Speaker 1: Motive Card. It's a zero fee corporate card that helps 735 00:41:48,800 --> 00:41:52,560 Speaker 1: our customers save on fuel, maintenance, tires, the things that 736 00:41:52,600 --> 00:41:55,440 Speaker 1: they spend money on. UM, but also uh, you know, 737 00:41:55,560 --> 00:41:57,640 Speaker 1: give them controls to be able to reduce fraud and 738 00:41:57,680 --> 00:42:00,719 Speaker 1: reduce excess spend. And so we're be doubling down there 739 00:42:00,760 --> 00:42:03,480 Speaker 1: and then also going up market serving larger and larger customers. 740 00:42:04,560 --> 00:42:08,120 Speaker 1: All Right, Showy mccannie, co founder and CEO of Motive, 741 00:42:08,400 --> 00:42:11,160 Speaker 1: We'll keep watching you. And that does it for this 742 00:42:11,320 --> 00:42:14,720 Speaker 1: edition of Bloomberg Technology. We are back here tomorrow Thomas 743 00:42:14,760 --> 00:42:18,120 Speaker 1: Carrie and the CEO of Google Cloud. We'll be with us. 744 00:42:18,480 --> 00:42:20,239 Speaker 1: You don't want to miss it, and don't forget to 745 00:42:20,280 --> 00:42:23,120 Speaker 1: check out our podcast. You can find that anywhere you 746 00:42:23,200 --> 00:42:26,759 Speaker 1: get your podcast. To get your daily Bloomberg Tech ground up. 747 00:42:27,040 --> 00:43:00,800 Speaker 1: I'm Emily Changing in San Francisco. This is Bloomberg's eight