WEBVTT - DOJ's Apple Lawsuit and the IPO Ecosystem 0:00:02.600 --> 0:00:09.120 Bloomberg Audio Studios, podcasts, radio news, from. 0:00:09.000 --> 0:00:13.080 The heart where innovations, money and power, Collie in Silicon 0:00:13.200 --> 0:00:14.160 Valley and beyond. 0:00:14.400 --> 0:00:18.440 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:32.280 --> 0:00:35.280 I'm Caroline Heidet Bloomberg's World headquarters in New York, and 0:00:35.360 --> 0:00:35.840 I met. 0:00:35.680 --> 0:00:40.040 Lover in San Francisco. Happy Friday. This is Bloomberg Technology Long. 0:00:39.880 --> 0:00:40.559 Week coming up. 0:00:40.600 --> 0:00:43.040 We'll discuss the regulatory overhang for Apple, I mean the 0:00:43.159 --> 0:00:46.560 Justice Department's sweeping lawsuit against the iPhone maker. 0:00:46.600 --> 0:00:49.040 Full analysis ahead, Plus we'll. 0:00:48.880 --> 0:00:51.800 Get to read on the IPO ecosystem after a Steri 0:00:51.880 --> 0:00:56.240 Labs and Reddit went public this week with strong debuts. 0:00:56.200 --> 0:00:57.560 And talking of the big week. 0:00:57.600 --> 0:00:59.760 Bitcoin actually set for one of his worst weeks of 0:00:59.760 --> 0:01:01.800 the year, as ETF demand that slows. 0:01:02.000 --> 0:01:04.759 We'll discuss that and so much more throughout this hour. 0:01:04.800 --> 0:01:09.800 Of Apple doj antitrust lawsuit against them and on Thursday 0:01:09.920 --> 0:01:13.319 session it had a real material impact on the stock. 0:01:13.680 --> 0:01:16.240 You can see actually we're sort of recovering up four 0:01:16.240 --> 0:01:18.800 ten to percent in the session, but I still think 0:01:18.840 --> 0:01:21.679 it was notable that finally there was a headline about 0:01:21.680 --> 0:01:24.639 antitrust relating to Apple, and there was a clear stock 0:01:24.680 --> 0:01:28.280 reaction in that session Thursday. What happens next is the 0:01:28.280 --> 0:01:31.199 big question from all. Let's bring in Bloomberg's Mark German, 0:01:31.280 --> 0:01:35.319 chief correspondent covering Apple. What's changed in the last twenty 0:01:35.319 --> 0:01:37.160 four hours since we last spoke. Do we have any 0:01:37.160 --> 0:01:40.280 signals from how Apple's going to respond to this suit? 0:01:40.720 --> 0:01:43.399 Yeah? I think reading through the lawsuit reveals a lot. 0:01:43.520 --> 0:01:47.000 It reveals that the Department of Justice had been working 0:01:47.040 --> 0:01:50.000 on the case for so long that I would say 0:01:50.040 --> 0:01:53.600 about sixty to seventy percent of their major points are 0:01:53.680 --> 0:01:58.040 things that have already been resolved. Apple doesn't believe, of course, 0:01:58.240 --> 0:02:01.280 they would say this that the case holds much water. 0:02:01.400 --> 0:02:04.680 They don't believe that they're a monopoly. They seem to 0:02:04.720 --> 0:02:08.200 find it perplexing that the government is trying to position 0:02:08.240 --> 0:02:10.919 them a monopoly, whereas they believe they only have about 0:02:10.960 --> 0:02:15.639 twenty percent global smartphone market share. I think that Apple 0:02:15.720 --> 0:02:18.400 is prepared for a fight here. I doubt they're going 0:02:18.480 --> 0:02:21.280 to settle. They've settled in some cases, but I don't 0:02:21.320 --> 0:02:24.400 think that Tim Cook has shown a willingness to settle. 0:02:24.480 --> 0:02:28.360 I think Apple believes and based on my read of 0:02:28.360 --> 0:02:32.680 the lawsuit, I'm not seeing much harm towards consumers. I'm 0:02:32.720 --> 0:02:36.120 seeing a lot of harm towards developers. I'm seeing harm 0:02:36.200 --> 0:02:41.120 towards partners and some rivals. But again, here are their 0:02:41.200 --> 0:02:44.360 top five issues the Department of Justice. A lack of 0:02:44.520 --> 0:02:49.520 cloud gaming support, allowed of message interoperability, a lack of 0:02:49.720 --> 0:02:53.240 super apps, which are things like we Chat, a lack 0:02:53.520 --> 0:02:57.519 of support for third party smart watches to the same 0:02:57.560 --> 0:03:00.359 degree as the Apple Watch, and a lack of support 0:03:00.880 --> 0:03:04.560 for Apple Pay the NFC chip on third party applications. 0:03:05.280 --> 0:03:07.959 I think of those five items, at least three, I 0:03:07.960 --> 0:03:09.960 would say even three and a half of those items 0:03:10.160 --> 0:03:15.040 have already been resolved. I expect the messages situation and 0:03:15.080 --> 0:03:18.600 the NFC situations to be resolved as well. But taking 0:03:18.600 --> 0:03:21.040 a step back here, you know, despite that, I don't 0:03:21.040 --> 0:03:24.640 think the DJ is making great arguments given the resolutions 0:03:24.680 --> 0:03:28.040 already in place. You have to be honest here. A 0:03:28.080 --> 0:03:30.760 lot of these resolutions are in place because Apple has 0:03:30.840 --> 0:03:34.680 been afraid of this impending DOJ lawsuit for several years, 0:03:34.920 --> 0:03:37.400 and they knew these were where they would be attacked, 0:03:37.440 --> 0:03:39.360 and so they knew they had to fix them. It 0:03:39.640 --> 0:03:43.240 just for some reason, Apple implementing the fixes didn't stop 0:03:43.280 --> 0:03:45.960 the DOJ from moving forward anyways, This is. 0:03:45.960 --> 0:03:46.840 A global company. 0:03:47.120 --> 0:03:50.640 Tim Cook in China at the moment seemingly all smiles 0:03:50.720 --> 0:03:55.440 and some conversations happening with Baydoo around potential generative AI. 0:03:55.520 --> 0:03:57.800 Of course, as many would say, as expected, that was 0:03:57.800 --> 0:04:01.080 all street journal reporting, Mark. But what seems to be 0:04:01.160 --> 0:04:06.000 at stake here is a philosophical difference. Philosophy driving Apple 0:04:06.040 --> 0:04:09.120 and the way in which wants its own ecosystem to work, 0:04:09.160 --> 0:04:09.360 and a. 0:04:09.360 --> 0:04:10.760 Philosophy that seems to be changing. 0:04:10.840 --> 0:04:13.200 Tach among regulators in the US and Europe is still 0:04:13.200 --> 0:04:17.120 looking at Apple as a whole, not just individual places that 0:04:17.160 --> 0:04:18.440 they act monopolistically. 0:04:19.760 --> 0:04:21.760 Yeah, a few things. Well, of course Tim Cook is 0:04:21.800 --> 0:04:25.200 going to be all smiles in China. He really has 0:04:25.720 --> 0:04:29.320 no other option. China is a very important market and 0:04:29.400 --> 0:04:32.880 Tim Cook is a poker player. He's not going to 0:04:33.120 --> 0:04:36.760 show his true feelings about this DOJ lawsuit, certainly not 0:04:36.839 --> 0:04:39.120 in front of the press and in a public setting 0:04:39.800 --> 0:04:43.040 as China is. You know, Apple stock took a big 0:04:43.120 --> 0:04:46.080 hit yesterday. I could think of ten better reasons for 0:04:46.160 --> 0:04:48.479 you to sell your Apple stock than what's in this 0:04:48.560 --> 0:04:52.400 DOJ lawsuit. Apple will certainly have to implement changes. I 0:04:52.480 --> 0:04:55.400 would imagine that what you've saw in the European Union 0:04:55.720 --> 0:04:59.240 regarding the digital market, sac changes, appside loading, opening up 0:04:59.240 --> 0:05:00.839 the NFC chip, You're going to see a lot of 0:05:00.839 --> 0:05:03.760 those changes over the next years occur in the US. 0:05:04.080 --> 0:05:05.640 But I don't think that's going to do much to 0:05:05.760 --> 0:05:09.200 change the fundamental situation with Apple. They're making a lot 0:05:09.200 --> 0:05:12.040 of money from the app store. They need to figure 0:05:12.040 --> 0:05:14.960 out a way to bring a next big hardware category 0:05:15.000 --> 0:05:18.440 to market. Everyone thought that was the car. That's probably 0:05:18.520 --> 0:05:20.839 what could have added fifty to one hundred billion or 0:05:20.880 --> 0:05:24.320 more to Apple's bottom line on an annual basis. That's 0:05:24.360 --> 0:05:27.559 what I could have doubled Apple's market cap to several 0:05:27.600 --> 0:05:30.760 more trillion over time. That's no longer happening, and so 0:05:30.920 --> 0:05:34.279 now I think the biggest issue for Apple is not regulation. 0:05:34.760 --> 0:05:36.839 It's not how the app store is going to be impacted. 0:05:37.160 --> 0:05:38.960 It's how Apple is going to continue to grow its 0:05:38.960 --> 0:05:41.679 hardware business. And don't forget, seventy five percent of Apple 0:05:41.680 --> 0:05:44.919 revenue is still hardware. Fundamentally, they are a hardware company, 0:05:45.160 --> 0:05:47.400 and so they really need to figure out how they 0:05:47.520 --> 0:05:51.040 expand there. But still AI, that's another important component, and 0:05:51.080 --> 0:05:52.719 they need to figure out that situation too. 0:05:53.040 --> 0:05:55.599 Need the next catalyst, Mark German, We thank you for 0:05:55.680 --> 0:05:57.000 really breaking that all down, and we. 0:05:56.960 --> 0:05:59.360 Want to just delve into the overhand from. 0:05:59.200 --> 0:06:01.159 A regulatory perspect to go a little bit more and 0:06:01.160 --> 0:06:02.080 the nuances around it. 0:06:02.120 --> 0:06:03.080 William Cover chitches with. 0:06:03.120 --> 0:06:05.880 Us George Washington Law School, Global Competition Professor of Law 0:06:05.920 --> 0:06:08.080 and Policy work at the CMO of and UK at 0:06:08.080 --> 0:06:11.160 one point, and William to that, and we all know 0:06:11.440 --> 0:06:14.280 that these sorts of legal wranglings are distraction. How much 0:06:14.320 --> 0:06:16.080 impact do you think you will have on a business model. 0:06:16.600 --> 0:06:18.960 I think the distraction comes from the number of people 0:06:19.000 --> 0:06:21.800 inside the company you have to commit to support the litigation. 0:06:22.400 --> 0:06:25.159 We don't know what that number is, but the experience 0:06:25.200 --> 0:06:27.720 in other major cases is that this can be a 0:06:27.760 --> 0:06:31.680 significant drag on the company. You have also the inhibition 0:06:31.760 --> 0:06:34.440 that comes from the pending lawsuits. Companies don't want to 0:06:34.520 --> 0:06:38.880 provide additional ammunition for prosecutors. It means that they're not 0:06:38.960 --> 0:06:42.400 quite as agile, not quite as adroit in developing business programs. 0:06:42.839 --> 0:06:47.520 I realize these are somewhat intangible consequences, but then cumulatively, 0:06:47.760 --> 0:06:49.800 when you take all of the developments we've just been 0:06:49.880 --> 0:06:53.400 talking about, in the United States and abroad. It's an 0:06:53.440 --> 0:06:57.240 avalanche of regulatory oversight that has to sap to some 0:06:57.400 --> 0:06:59.640 extent the creative energy of the company. 0:07:01.000 --> 0:07:05.000 Mister Kovachich, we sometimes talk about in this program regulating 0:07:05.120 --> 0:07:08.320 through the courts, you know, a legal action to get 0:07:08.360 --> 0:07:11.440 a result, that's the bigger picture. Is there an avenue 0:07:11.480 --> 0:07:14.000 where Apple and the DOJ can just work this out 0:07:14.080 --> 0:07:15.000 outside of court? 0:07:15.520 --> 0:07:18.600 I would think there's always the possibility of reaching a solution. 0:07:19.280 --> 0:07:21.440 The solution, though, is going to have to be one 0:07:21.480 --> 0:07:25.760 that persuades the just This Department that the overall aim 0:07:26.080 --> 0:07:30.120 of any specific settlement is not subject to evasion by 0:07:30.120 --> 0:07:31.280 additional adjustments in. 0:07:31.280 --> 0:07:32.160 The business model. 0:07:32.520 --> 0:07:34.680 They'll have to be confident that the solution is one 0:07:34.720 --> 0:07:37.840 that they can monitor and oversee effectively. I think that 0:07:38.000 --> 0:07:40.880 there would be a willingness to discuss settlements. But a 0:07:40.960 --> 0:07:45.040 major message that has come from the age agencies in 0:07:45.080 --> 0:07:48.160 the US in recent years is a great deal of 0:07:48.160 --> 0:07:51.960 skepticism about the efficacy of many settlement arrangements and doubts 0:07:52.000 --> 0:07:54.840 about how readily you can implement them and be effective. 0:07:56.080 --> 0:07:59.520 In your reading of the suit itself, do you think 0:07:59.560 --> 0:08:00.560 the JAY. 0:08:00.840 --> 0:08:01.720 Has a point here? 0:08:02.600 --> 0:08:05.160 They do have a point, and the point is one 0:08:05.200 --> 0:08:10.120 that in a sense involves again a collection of intangible considerations. 0:08:10.480 --> 0:08:14.400 But there's anxiety about the possibility that incumbent firms that 0:08:14.480 --> 0:08:19.160 have a significant market position, will, through a variety of tactics, 0:08:19.240 --> 0:08:23.040 diminish the emergence of alternative technologies and. 0:08:23.040 --> 0:08:24.080 New business models. 0:08:24.960 --> 0:08:28.160 That concern might be very much the feeling that anti 0:08:28.240 --> 0:08:31.560 trust law failed in the last thirty years to deal 0:08:31.560 --> 0:08:35.080 effectively with the emergence of new tech. And I believe 0:08:35.160 --> 0:08:37.960 a state of mind and perspective that has a tight 0:08:38.000 --> 0:08:40.560 grip on the agencies is that they're not going to 0:08:40.600 --> 0:08:44.960 allow the permissiveness of the past to continue. And it 0:08:45.000 --> 0:08:46.959 means that they're going to dig in and look carefully 0:08:47.160 --> 0:08:50.439 at anything that appears to be an effort by an 0:08:50.440 --> 0:08:55.240 incumbent to see that new technologies, new business approaches do 0:08:55.360 --> 0:08:56.040 not emerge. 0:08:56.840 --> 0:08:57.959 This is dj action. 0:08:58.360 --> 0:09:03.520 We've seen FTC have a similar focus. But sometimes this 0:09:03.640 --> 0:09:07.199 is political. In an election year, does this sort of continue. 0:09:07.679 --> 0:09:09.960 I'm going to give you a bit of speculation that 0:09:10.000 --> 0:09:13.280 I could never prove in a rigorous way, but I 0:09:13.400 --> 0:09:18.079 noticed that President Biden's opponent in many instances has been 0:09:18.120 --> 0:09:21.240 skeptical of tech. Now that skepticism has been focused in 0:09:21.280 --> 0:09:26.440 particular on the information services platforms that are involved in 0:09:26.440 --> 0:09:29.080 involved in advertising, involved in social messaging. 0:09:29.360 --> 0:09:31.400 But it was Donald Trump's Justice. 0:09:31.080 --> 0:09:35.320 Department that initiated the Google search monopolization case. It was 0:09:35.360 --> 0:09:39.080 Donald Trump's Federal Trade Commission that began the lawsuit against 0:09:39.120 --> 0:09:42.960 Meta for its acquisition of Instagram. It could entirely be 0:09:43.080 --> 0:09:46.240 possible that, at least for tech, given the way their 0:09:46.240 --> 0:09:50.400 political contributions go, given his concern about the role they've 0:09:50.440 --> 0:09:53.600 played in his own electoral process in the past, that 0:09:53.720 --> 0:09:55.720 he may look at the FTC in the Department of 0:09:55.880 --> 0:09:57.800 Justice and say, keep up the good work. 0:09:58.640 --> 0:10:01.840 It was a Trump as well when this was first 0:10:01.840 --> 0:10:04.480 initiated to Apple back in twenty nineteen, William cover Chich, 0:10:04.520 --> 0:10:05.199 we thank you so much. 0:10:05.200 --> 0:10:07.439 George Washington Law School, absolutely brilliant to get his take. 0:10:07.520 --> 0:10:09.600 Mean while coming up, Look, we're going to be chatting 0:10:09.640 --> 0:10:12.880 to a head moderator of Reddit forum all street bets. 0:10:12.960 --> 0:10:15.040 You know you know it, well, I's going to be 0:10:15.120 --> 0:10:18.040 joining us find out how reddits ipo, how much the 0:10:18.040 --> 0:10:35.720 effect to the user base there's in Bloomberg Technology. 0:10:34.000 --> 0:10:37.480 The fourth largest IPO of the year, Reddit climbed forty 0:10:37.520 --> 0:10:40.640 eight percent on its first day of trading yesterday, after 0:10:40.679 --> 0:10:44.120 pricing at the top of its marketed range, raising seven 0:10:44.200 --> 0:10:47.920 hundred and forty eight million dollars. Let's bring in Bloombo's 0:10:48.000 --> 0:10:51.360 Katie Ruth, who has lived and breathed reddits ipo this week. 0:10:52.679 --> 0:10:54.600 That's true. I mean for many people, I would say 0:10:54.600 --> 0:10:55.440 this went well. 0:10:55.440 --> 0:10:56.040 This ipo. 0:10:56.559 --> 0:10:58.000 So it did the first day. 0:10:58.200 --> 0:11:01.680 Right now it's trading down, although yes, technically it's still 0:11:01.720 --> 0:11:05.240 above well above the IPO price, it's not really much 0:11:05.280 --> 0:11:08.360 above where it opened yesterday. And so I think there's 0:11:08.400 --> 0:11:10.800 two numbers to watch here. It's the thirty four dollars 0:11:10.880 --> 0:11:12.959 where priced at the top of the range, and that's 0:11:13.000 --> 0:11:16.400 where the insiders, you could say, the institutional investors that 0:11:16.480 --> 0:11:19.120 have banker connections, that's where they bought. And then some 0:11:19.520 --> 0:11:22.640 some of Reddit's top users were able to buy at 0:11:22.640 --> 0:11:25.320 that price. And then there's everybody else which bought it 0:11:25.400 --> 0:11:28.320 that forty seven dollars a share where it opened yesterday, 0:11:28.520 --> 0:11:30.320 and right now it's trading at. 0:11:30.200 --> 0:11:31.400 Forty seven ish. 0:11:31.600 --> 0:11:35.000 So and it was actually dipped below that opening price 0:11:35.080 --> 0:11:37.199 this morning for a little bit, so some people could 0:11:37.240 --> 0:11:40.160 have already lost some money on Reddit. But you know, 0:11:40.600 --> 0:11:41.920 most are making money. 0:11:42.280 --> 0:11:46.240 And certainly long term investors have cashed in here potentially, Katie, 0:11:46.280 --> 0:11:50.520 I'm interested as to what this means for ongoing IPOs, 0:11:50.600 --> 0:11:53.480 what this means more broadly, for money left on the table. 0:11:53.880 --> 0:11:55.360 We want IPOs to do well. 0:11:55.520 --> 0:11:58.400 Bankers certainly do, but the people raising the money don't 0:11:58.400 --> 0:11:59.640 want them to go too well and feel that they 0:11:59.640 --> 0:12:02.480 could have rais Yeah, the money left on. 0:12:02.440 --> 0:12:05.240 The table argument is an interesting one. It sounds like 0:12:05.280 --> 0:12:08.079 what you're referencing is where they could have raised even 0:12:08.120 --> 0:12:10.719 more money and had less of a pop. I think 0:12:10.760 --> 0:12:14.040 it's too early to tell whether Reddit allowed for too 0:12:14.120 --> 0:12:15.880 much of a pop. You know, as I noted, it's 0:12:15.920 --> 0:12:18.679 already trading lower today, and you know, we'll see what 0:12:18.760 --> 0:12:21.720 happens next week. But you know, it depends on what 0:12:21.760 --> 0:12:24.360 they're optimizing for. If they if they're just optimizing for 0:12:24.440 --> 0:12:27.360 raising a little bit more cash, then you want to 0:12:27.480 --> 0:12:29.920 price it high. But you don't want to make a 0:12:29.960 --> 0:12:32.360 bad first impression on the stock market because it could 0:12:32.400 --> 0:12:36.040 be really hard to recover from that. And so that's 0:12:36.160 --> 0:12:38.480 you know, the argument that the bankers will make about 0:12:38.520 --> 0:12:42.719 why they price it to pop. They also want these insiders, 0:12:42.760 --> 0:12:48.240 these large anchor investors to keep buying more shares you know, 0:12:48.360 --> 0:12:50.720 in this IPO and ips to come, and they're not 0:12:50.760 --> 0:12:52.240 going to do that. They're not going to take that 0:12:52.440 --> 0:12:55.600 risk on a new listing on the first day unless 0:12:55.640 --> 0:12:57.760 they feel like they're getting some sort of discount. 0:12:58.360 --> 0:13:01.720 Katie with go get some thank you so much as 0:13:01.760 --> 0:13:03.600 we brace for more IPOs to come in the next 0:13:03.640 --> 0:13:06.040 few weeks, I'm sure, but well, we want to get 0:13:06.080 --> 0:13:06.559 a take. 0:13:06.400 --> 0:13:09.400 On how the users, those redditors are. 0:13:09.360 --> 0:13:11.640 Feeling about the company's IPO. They had a chance to 0:13:11.679 --> 0:13:13.640 buy in, and of course we know the a vocal bunch. 0:13:13.960 --> 0:13:15.960 Nor ours with us as a senior analyst and private 0:13:16.000 --> 0:13:18.320 equity back to healthcare company. There's also been a Reddit 0:13:18.400 --> 0:13:21.160 user for more than ten years, a moderator for the. 0:13:21.120 --> 0:13:22.719 Forum Wall Street Bets for. 0:13:22.760 --> 0:13:26.439 Nine, spending the most recent three years as a head moderator. 0:13:26.640 --> 0:13:28.880 He joins us now to tell us more well basically 0:13:28.920 --> 0:13:32.000 about Reddit's debut. How has Wall Street bets, How has 0:13:32.000 --> 0:13:33.240 your community reacted? 0:13:33.360 --> 0:13:35.319 Have you been positive on it? 0:13:35.320 --> 0:13:36.480 It's really been a mixed bag. 0:13:36.720 --> 0:13:39.120 There's a ton of positivity but also a lot of 0:13:39.160 --> 0:13:43.560 people excited to short byputs. But Paul and all, they're 0:13:43.559 --> 0:13:46.079 just excited for the volatility, and that's absolutely what we're 0:13:46.080 --> 0:13:46.880 seeing here today. 0:13:47.400 --> 0:13:50.280 Nor last week on the show, we reported on the 0:13:50.920 --> 0:13:53.559 post that Reddit made itself saying we're going to do 0:13:53.600 --> 0:13:58.120 an AMA and we will answer the questions in video format, 0:13:58.720 --> 0:14:01.920 selecting the most up to posts. At the time that 0:14:01.960 --> 0:14:04.560 we reported it on this program, the most upvoted post 0:14:04.640 --> 0:14:06.720 is why are you even going public? It's not a 0:14:06.760 --> 0:14:10.000 great vibe right now. Just give me your reaction to that. 0:14:10.080 --> 0:14:14.800 I mean, it's the function of Reddit ironically pushing the 0:14:15.000 --> 0:14:16.200 management to think again. 0:14:16.760 --> 0:14:20.160 Absolutely, yeah, I think this is actually a great time 0:14:20.160 --> 0:14:23.480 for Reddit to IPOs I'm surprised. Certainly there was a 0:14:23.520 --> 0:14:26.080 lot of turmoil over the past year, but if you 0:14:26.120 --> 0:14:28.640 look at what came out of that from a business perspective, 0:14:28.640 --> 0:14:31.120 it's actually been very positive. We saw with the Reddit 0:14:31.200 --> 0:14:36.280 protests that actually people found Reddit completely indispensable. There was 0:14:36.360 --> 0:14:39.760 so much opportunity for a competitor to take reddits place, 0:14:40.200 --> 0:14:42.920 and nothing came out of it. So this just goes 0:14:42.960 --> 0:14:46.080 to show how deeply ingrained Reddit is in the zeitgeist 0:14:46.280 --> 0:14:47.960 and that it's here to stay. 0:14:48.480 --> 0:14:51.440 Nor there are many redditors and indeed moderators that have 0:14:51.600 --> 0:14:56.520 big concerns on reddits plan to license user and platform 0:14:56.640 --> 0:15:00.520 data to AI companies to use it to train la lens. 0:15:00.960 --> 0:15:02.960 What's your position on it from. 0:15:02.720 --> 0:15:05.240 A business perspective, It's definitely a risk. We're seeing that 0:15:05.320 --> 0:15:08.920 the FTC is also looking into this, but it is 0:15:08.960 --> 0:15:13.360 a huge opportunity and Reddit owns something that is very 0:15:13.400 --> 0:15:16.920 special for lllms, and that is real time user reactions 0:15:17.280 --> 0:15:19.400 to what's going on in the world around us, and 0:15:19.440 --> 0:15:22.120 that's something that I think no other platform has. So 0:15:23.080 --> 0:15:25.560 it's a great opportunity for Reddit to make money off 0:15:25.560 --> 0:15:28.200 of that and then turn around and invest that money 0:15:28.280 --> 0:15:29.840 in improving the user experience. 0:15:30.600 --> 0:15:33.160 No, I want to ask about the evolution of moderation, 0:15:33.680 --> 0:15:37.320 because money would say in anticipation in the IPO, reditor 0:15:37.440 --> 0:15:41.160 really read it, really got ahead of ensuring that this 0:15:41.240 --> 0:15:43.240 became a safer space to. 0:15:43.200 --> 0:15:46.040 Be able to comment. Does that stand? 0:15:46.320 --> 0:15:49.040 How has anything been lost in the focus of needing 0:15:49.080 --> 0:15:50.280 to clean up the platform. 0:15:50.600 --> 0:15:53.200 We've definitely lost a little bit of the chaos and 0:15:53.680 --> 0:15:57.280 grit that you would have seen on Reddit ten fifteen 0:15:57.360 --> 0:16:01.080 years ago. And although that lose some of its charm, 0:16:01.160 --> 0:16:03.640 I think it's more reflective of the state of the 0:16:03.720 --> 0:16:07.160 Internet rather than Reddit as a platform itself. We're seeing 0:16:07.600 --> 0:16:14.880 all platforms, social media platforms censor in response to government 0:16:14.960 --> 0:16:18.640 regulations and laws that have been placed on hate speech 0:16:18.680 --> 0:16:19.840 and other types of speech. 0:16:20.240 --> 0:16:24.400 So Reddit is actually maintaining. 0:16:23.920 --> 0:16:26.120 Its position as the front page of the Internet and 0:16:26.160 --> 0:16:29.840 simply reflecting what is on the Internet through these policy changes. 0:16:30.920 --> 0:16:35.040 Wall streetbats was what we talked about day in, day 0:16:35.120 --> 0:16:38.960 out in twenty twenty one through twenty twenty two name 0:16:39.040 --> 0:16:43.200 being made around GameStop, the power that reditors had in 0:16:43.280 --> 0:16:46.040 that moment. What do you think the powers of redditors 0:16:46.080 --> 0:16:47.320 around the Reddit stock itself. 0:16:48.000 --> 0:16:50.360 It'll be interesting to see It'll be interesting to see 0:16:50.400 --> 0:16:53.400 you when redditors feel empowered that the actions they take 0:16:53.480 --> 0:16:57.360 on the platform can make a meaningful impact on the 0:16:57.400 --> 0:17:02.280 stock price of Reddit itself. Like with the game Stop debacle, 0:17:02.320 --> 0:17:04.760 we saw over a billion page views in a very 0:17:04.840 --> 0:17:07.199 very short period of time in a month, and we 0:17:07.200 --> 0:17:10.160 saw that continue for several months. So to think that 0:17:10.640 --> 0:17:14.040 redditors now who are might be investors themselves, can have 0:17:14.080 --> 0:17:17.240 a positive impact on the stock will simply deepen their 0:17:17.280 --> 0:17:20.240 relationship with the company and with the platform. 0:17:20.520 --> 0:17:22.920 No, we just have thirty seconds for someone that has 0:17:22.960 --> 0:17:26.040 no idea what Reddit is what's your pitch for them 0:17:26.040 --> 0:17:27.320 to get onto the platform. 0:17:27.720 --> 0:17:30.800 Reddit is a city that is incredibly deep, with countless 0:17:30.800 --> 0:17:35.200 communities to fill every need that you knew or didn't 0:17:35.240 --> 0:17:37.399 know that you are interested in learning more about. If 0:17:37.440 --> 0:17:41.159 you've got an intellectual curiosity that can't be satisfied, Reddit 0:17:41.240 --> 0:17:41.879 is the place for you. 0:17:42.640 --> 0:17:45.320 Head moderator for and Wall Street bets on Reddit, and 0:17:45.320 --> 0:17:49.000 I point out that moderators are volunteers to all intents 0:17:49.040 --> 0:17:51.119 and purposes and are how great to have you on 0:17:51.160 --> 0:18:06.680 the program. 0:17:59.200 --> 0:18:02.280 Time Now tech first Up mayto one's quarterly revenue, it 0:18:02.320 --> 0:18:05.080 climbed better than expected twenty three percent. Now that's a 0:18:05.119 --> 0:18:07.119 sign that the company is actually making some headway in 0:18:07.160 --> 0:18:09.520 its efforts to fend off a challenge from Byte Dances 0:18:09.640 --> 0:18:12.919 Doyen in China's meal delivery arena. Now shares in the 0:18:12.920 --> 0:18:15.480 company are up this year after losing more than half 0:18:15.560 --> 0:18:18.800 of their value in twenty twenty three. Plus Wawei and 0:18:18.840 --> 0:18:21.760 a secretive chip making partner in China, Well, they file 0:18:21.800 --> 0:18:24.439 patterns for a lower tech but potentially effective way to 0:18:24.560 --> 0:18:26.359 make advanced semiconductors. 0:18:26.520 --> 0:18:30.280 And we're talking about self aligned quadruple patterning here or SAQP. 0:18:30.720 --> 0:18:33.800 Basically, it's raising the prospect that China could improve chip 0:18:33.840 --> 0:18:36.000 production techniques despite. 0:18:35.720 --> 0:18:37.320 US efforts to hold its progress. 0:18:37.920 --> 0:18:40.520 And lastly, Tesla, we'll go chick with steck with China 0:18:40.520 --> 0:18:43.440 here because it's reduced production at its plants over there 0:18:43.480 --> 0:18:46.200 amid us some sluggish growth and EV sales and intense 0:18:46.200 --> 0:18:46.760 competition in the. 0:18:46.720 --> 0:18:48.200 World's biggest all code auto market. 0:18:48.200 --> 0:18:50.959 Now the car maker has instructed employees at its Shanghai 0:18:51.040 --> 0:18:54.480 facility to lower production of the Model Y and Model three. 0:18:54.680 --> 0:18:57.040 That's two vehicles that Tesla actually makes over there in 0:18:57.080 --> 0:18:59.240 China by working just five days a week instead of 0:18:59.320 --> 0:19:00.520 usual six and a half half days. 0:19:00.960 --> 0:19:02.640 All of this, according to sources. 0:19:03.960 --> 0:19:08.719 British audience in the UK pay attention. Vodaphone and Three's 0:19:08.840 --> 0:19:12.520 UK combination is facing a deep check by the UK 0:19:12.640 --> 0:19:16.520 Competition Markets Authority, the CMA, the regulator. They issued a 0:19:16.560 --> 0:19:20.240 statement Friday saying they're concerned and they don't buy the 0:19:20.480 --> 0:19:25.520 argument from Vodafone and three that combining the two would 0:19:25.560 --> 0:19:30.200 mean better deals for customers. Vodaphones London listed shares actually 0:19:30.200 --> 0:19:32.880 at one point eight percent with a little to go, 0:19:33.680 --> 0:19:37.919 but it's an interesting story about consolidation in that market. 0:19:37.960 --> 0:19:38.680 This is Bloomberg. 0:19:46.560 --> 0:19:48.439 Welcome back to me new MEOT technology. I'm Caroline Hid 0:19:48.480 --> 0:19:48.720 in New. 0:19:48.720 --> 0:19:51.200 York and I'm Ed Ludlow in San Francisco. 0:19:51.440 --> 0:19:54.600 Let's talk about this whole new wave of IPO names. 0:19:54.640 --> 0:19:57.359 Read at Asteri Labs debuting this week and just whether 0:19:57.440 --> 0:19:58.960 or not that's going to open up the pipeline. A 0:19:59.000 --> 0:20:02.160 little bit more broadly, eyipa Practice Co had richual Garings 0:20:02.160 --> 0:20:05.920 here to take basically on the feel good factor right now. 0:20:06.160 --> 0:20:09.840 Thus far these companies have come to the market and come. 0:20:09.680 --> 0:20:11.880 Well, does that mean suddenly the. 0:20:11.840 --> 0:20:13.560 Yours the other names that we've been waiting for for 0:20:13.600 --> 0:20:15.200 a long time, I'm gonna be galvanized. 0:20:15.240 --> 0:20:16.280 Do you think it. 0:20:16.280 --> 0:20:20.080 Definitely helps the momentum for what we're expecting in the 0:20:20.160 --> 0:20:22.080 IPO market, the pipeline that. 0:20:22.040 --> 0:20:25.320 We're seeing come through. As you all, we're noting. 0:20:25.080 --> 0:20:28.280 Though, the post IPO performance of these companies that even 0:20:28.320 --> 0:20:31.480 the ones before them, will really help continue setting the 0:20:31.520 --> 0:20:35.120 stage and help influence what will continue coming to market 0:20:35.160 --> 0:20:37.320 over these next several months and throughout the remainder of 0:20:37.400 --> 0:20:39.240 twenty four We've got. 0:20:39.119 --> 0:20:41.040 You know, positive momentum. 0:20:41.080 --> 0:20:43.159