1 00:00:02,560 --> 00:00:10,960 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,000 --> 00:00:14,240 Speaker 2: From Mahart where Innovation, money and power Collie in Silicon Valley, Nbon. 3 00:00:14,640 --> 00:00:19,160 Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 4 00:00:32,159 --> 00:00:34,760 Speaker 3: And Caroline Heinder Bloomberg's world headquarters in New York. This 5 00:00:34,880 --> 00:00:37,880 Speaker 3: is Bloomberg Technology coming up in Vidio. It tops two 6 00:00:37,920 --> 00:00:41,120 Speaker 3: trillion dollars in market value, becoming the world's fourth most 7 00:00:41,159 --> 00:00:45,239 Speaker 3: valuable company. For coverage, Ahead Plus will break down reddits 8 00:00:45,280 --> 00:00:48,400 Speaker 3: filing to go public, from its AI ambitions to its 9 00:00:48,440 --> 00:00:50,760 Speaker 3: largest shareholders, and Sam Altman. 10 00:00:50,640 --> 00:00:51,560 Speaker 4: Here's Omni present. 11 00:00:51,800 --> 00:00:55,080 Speaker 3: We've got you covered and Calvana shares pop by the 12 00:00:55,120 --> 00:00:57,720 Speaker 3: most of seven months after the used car retailer defied 13 00:00:57,800 --> 00:01:00,720 Speaker 3: challenges of higher interest rates and inflation to actually post 14 00:01:00,960 --> 00:01:02,840 Speaker 3: we kind of solid end to twenty twenty three. 15 00:01:03,080 --> 00:01:05,520 Speaker 4: We sit down with the company's CEO. I mean, while 16 00:01:05,600 --> 00:01:06,520 Speaker 4: not all. 17 00:01:06,240 --> 00:01:10,400 Speaker 3: Earnings are glorious, and Mircado Libre manages to underperformer off 18 00:01:10,400 --> 00:01:12,960 Speaker 3: by thirteen percent, one of the worst performers on the day. 19 00:01:13,040 --> 00:01:15,640 Speaker 3: Not to mention Warner Brothers, which will be digging into 20 00:01:15,720 --> 00:01:18,280 Speaker 3: a little bit later, But first, let's just peel back 21 00:01:18,560 --> 00:01:20,679 Speaker 3: all of these narratives. When it comes to earnings, when 22 00:01:20,680 --> 00:01:23,000 Speaker 3: it comes to the AI boom, and really decide whether 23 00:01:23,000 --> 00:01:25,240 Speaker 3: there's more legs to run on In terms of this market, 24 00:01:25,280 --> 00:01:27,360 Speaker 3: Erica claren Places says, well, that's what folio manager of 25 00:01:27,360 --> 00:01:30,760 Speaker 3: a PGM Jennison Technology Fund her read on tech on 26 00:01:30,840 --> 00:01:33,200 Speaker 3: markets on and video. Of course, I mean, we look 27 00:01:33,200 --> 00:01:36,039 Speaker 3: at the one point nine at seven trillion dollar market capitalization, 28 00:01:36,080 --> 00:01:38,280 Speaker 3: we're clawing our way to the two trillion mark, Erica, 29 00:01:38,280 --> 00:01:41,720 Speaker 3: And I'm interested as to whether you think the hype 30 00:01:42,000 --> 00:01:45,120 Speaker 3: has reality underneath it and ultimately whether we will see 31 00:01:45,120 --> 00:01:47,520 Speaker 3: a leg higher or well we'll see a broadening at 32 00:01:47,600 --> 00:01:49,880 Speaker 3: last in terms of the AI love. 33 00:01:50,560 --> 00:01:52,640 Speaker 5: Well, to answer your question, I think yes to both. 34 00:01:53,240 --> 00:01:56,040 Speaker 5: Jennison has always had a very long term outlook on 35 00:01:56,640 --> 00:01:59,920 Speaker 5: trying to dimension what these opportunities are. We've always been 36 00:02:00,200 --> 00:02:03,120 Speaker 5: very very positive. We were very early in investing in 37 00:02:03,480 --> 00:02:07,200 Speaker 5: Nvidia back in twenty sixteen, and all of our expectations, 38 00:02:07,320 --> 00:02:10,120 Speaker 5: even as ambitious as they were, have been absolutely blown 39 00:02:10,120 --> 00:02:10,959 Speaker 5: out of the water. 40 00:02:10,760 --> 00:02:14,359 Speaker 4: To the upside. I mean, Jensen is an operator. 41 00:02:14,480 --> 00:02:16,959 Speaker 3: He manages to guide and then beat and guide and 42 00:02:17,000 --> 00:02:21,359 Speaker 3: beat each time and still managed to be a global business. 43 00:02:21,440 --> 00:02:23,639 Speaker 3: And I think that's sort of what's been extraordinary that 44 00:02:23,680 --> 00:02:25,640 Speaker 3: this is a company that is finding working with China 45 00:02:25,680 --> 00:02:29,280 Speaker 3: more difficult, largely because of US Chinese geopolitics. How much 46 00:02:29,320 --> 00:02:30,840 Speaker 3: do you have to factor that into some of these 47 00:02:30,840 --> 00:02:31,919 Speaker 3: big tech names. 48 00:02:32,040 --> 00:02:35,840 Speaker 5: Well, certainly the political landscape right now is much more 49 00:02:35,919 --> 00:02:39,320 Speaker 5: challenging for companies as they have restrictions in terms of 50 00:02:39,360 --> 00:02:41,720 Speaker 5: where they can sell what they can sell into China. 51 00:02:42,160 --> 00:02:45,680 Speaker 5: China had risen to about twenty percent of in Nvidia's 52 00:02:45,720 --> 00:02:48,640 Speaker 5: data center revenue. That contracted down to five percent in 53 00:02:48,680 --> 00:02:51,560 Speaker 5: the most recent quarter. But what we're seeing is for 54 00:02:51,600 --> 00:02:54,919 Speaker 5: companies like in Vidia, they've been very nimble, very innovative 55 00:02:55,120 --> 00:02:57,560 Speaker 5: in terms of coming out with products that comply with 56 00:02:57,600 --> 00:03:00,239 Speaker 5: all the export laws. Those will start to ship later 57 00:03:00,320 --> 00:03:02,959 Speaker 5: this year. We believe at Jennison that there's a lot 58 00:03:02,960 --> 00:03:06,200 Speaker 5: of pent up demand from those Chinese customers that will 59 00:03:06,240 --> 00:03:09,080 Speaker 5: contribute to the company's overall performance in the second half. 60 00:03:09,639 --> 00:03:10,880 Speaker 4: Let's broaden out from Nvidia. 61 00:03:10,960 --> 00:03:14,440 Speaker 3: Therefore, is there room market share ability and capability for 62 00:03:14,520 --> 00:03:16,240 Speaker 3: the likes of MD and some of the other rivals 63 00:03:16,280 --> 00:03:16,680 Speaker 3: in the space. 64 00:03:16,720 --> 00:03:18,400 Speaker 4: Should we look to other chip makers? 65 00:03:19,240 --> 00:03:21,600 Speaker 5: Our view is yes, at Jennison, we see that in 66 00:03:21,680 --> 00:03:25,120 Speaker 5: Nvidia in its own process of innovation has opened up 67 00:03:25,160 --> 00:03:28,360 Speaker 5: the doors of opportunity for many other companies, from compute 68 00:03:28,400 --> 00:03:32,440 Speaker 5: companies as you mentioned, like Advanced micro Devices and Broadcom 69 00:03:32,560 --> 00:03:36,520 Speaker 5: which we own in size, to storage companies, to networking companies, 70 00:03:36,720 --> 00:03:38,840 Speaker 5: and of course to software companies that are able to 71 00:03:38,960 --> 00:03:41,280 Speaker 5: harness this incredible compute. 72 00:03:40,840 --> 00:03:43,000 Speaker 4: Power to deliver software. 73 00:03:42,600 --> 00:03:45,880 Speaker 5: That enables tremendous games and productivity and innovation. 74 00:03:46,960 --> 00:03:49,640 Speaker 3: When just going back to Nvidia for a moment, is 75 00:03:49,720 --> 00:03:53,240 Speaker 3: there anything that makes you give pause a two trillion 76 00:03:53,280 --> 00:03:57,440 Speaker 3: dollar market valuation an issue of China or indeed of 77 00:03:57,520 --> 00:03:59,960 Speaker 3: just like running out of road of exuberance, or really 78 00:04:00,120 --> 00:04:03,440 Speaker 3: you have to go back to well forward pe ratios 79 00:04:03,440 --> 00:04:05,840 Speaker 3: that still make the company look really rather attractive and 80 00:04:05,920 --> 00:04:06,880 Speaker 3: not that expensive. 81 00:04:07,520 --> 00:04:10,440 Speaker 5: Well, what we try to do at Jennison is really 82 00:04:10,520 --> 00:04:13,040 Speaker 5: take a longer term view. We've actually written some white 83 00:04:13,040 --> 00:04:15,680 Speaker 5: papers that are on our website about this. But looking 84 00:04:15,720 --> 00:04:19,960 Speaker 5: out over the entire TAM of the installed base of infrastructure, 85 00:04:20,240 --> 00:04:23,640 Speaker 5: we see that as a one trillion dollar opportunity today. 86 00:04:24,040 --> 00:04:26,640 Speaker 5: But the very innovation that Nvidia and others are bringing 87 00:04:26,680 --> 00:04:30,160 Speaker 5: to the table is expanding that TAM and will really 88 00:04:30,200 --> 00:04:33,880 Speaker 5: only maybe ten to fifteen percent penetrated at this point, 89 00:04:34,040 --> 00:04:37,919 Speaker 5: so we see years of opportunity ahead for further penetration 90 00:04:38,000 --> 00:04:41,160 Speaker 5: of those markets, further updating to this brand new way 91 00:04:41,480 --> 00:04:44,120 Speaker 5: of compute, which is known as parallel processism. 92 00:04:44,560 --> 00:04:47,080 Speaker 4: Where else is the slack then, because there is. 93 00:04:47,160 --> 00:04:50,080 Speaker 3: If you talk to the VC community, yes they're looking 94 00:04:50,120 --> 00:04:52,640 Speaker 3: at the underlying compute and the large language models, but 95 00:04:52,640 --> 00:04:54,560 Speaker 3: they're also looking at the applications and the. 96 00:04:54,480 --> 00:04:55,559 Speaker 4: App layer to AI. 97 00:04:55,960 --> 00:04:58,560 Speaker 3: But where are you looking from an industry perspective where 98 00:04:58,640 --> 00:05:02,960 Speaker 3: ultificient intelligence can bring real opportunities for productivity. 99 00:05:02,279 --> 00:05:05,560 Speaker 5: Basic Well, you know, there are, of course the obvious 100 00:05:05,560 --> 00:05:08,360 Speaker 5: places that people talk about, the big hyperscalers being able 101 00:05:08,400 --> 00:05:12,560 Speaker 5: to recommend with much more accuracy and targets companies like 102 00:05:12,600 --> 00:05:17,719 Speaker 5: Amazon Google using these tools to improve their recommenders. However, 103 00:05:18,320 --> 00:05:21,159 Speaker 5: one of the I guess two big new opportunities that 104 00:05:21,200 --> 00:05:24,520 Speaker 5: have emerged in the market unexpectedly in twenty twenty three 105 00:05:24,520 --> 00:05:27,240 Speaker 5: and are accelerating into twenty twenty four. One would be 106 00:05:27,279 --> 00:05:31,240 Speaker 5: the healthcare industry, where companies are using this technology for 107 00:05:31,480 --> 00:05:34,960 Speaker 5: much faster drug development times. And then also we've seen 108 00:05:35,040 --> 00:05:39,480 Speaker 5: an extraordinary interest in sovereigns country's coming in saying we 109 00:05:39,560 --> 00:05:43,440 Speaker 5: want our own version of Chatchibt and our own native language. 110 00:05:43,560 --> 00:05:45,839 Speaker 5: They have their own sets of concerns with regards to 111 00:05:45,920 --> 00:05:49,160 Speaker 5: oversight that they can then control, and they are looking 112 00:05:49,240 --> 00:05:52,560 Speaker 5: for US counterparts to enable them to bring these technologies 113 00:05:52,600 --> 00:05:53,159 Speaker 5: to the market. 114 00:05:53,839 --> 00:05:56,560 Speaker 3: How about the cyber iml of all of this, because 115 00:05:56,600 --> 00:05:59,680 Speaker 3: it felt like that was a real tailwind for syvestalks 116 00:05:59,680 --> 00:06:01,440 Speaker 3: as well. And then you get the awnings of Palo 117 00:06:01,480 --> 00:06:03,680 Speaker 3: outs on networks and everyone's worried and then not going 118 00:06:03,720 --> 00:06:05,760 Speaker 3: to factor in as quickly as people at anticipate. Is 119 00:06:05,839 --> 00:06:08,320 Speaker 3: are there any parts of the technology space that you 120 00:06:08,400 --> 00:06:11,839 Speaker 3: think is overdone? All the valuation's on attractive right now? 121 00:06:12,320 --> 00:06:15,160 Speaker 5: Well, you know, what we're seeing at Jennison is a 122 00:06:15,360 --> 00:06:19,480 Speaker 5: real tale of haves and have not those companies that 123 00:06:19,560 --> 00:06:23,120 Speaker 5: are bringing technologies to the table that are truly disrupting 124 00:06:23,120 --> 00:06:25,919 Speaker 5: the industries that they are in, and those companies that 125 00:06:26,120 --> 00:06:30,120 Speaker 5: may be facing challenges over the longer period, particularly with 126 00:06:30,160 --> 00:06:34,240 Speaker 5: regards to pricing. People talk about, for example, as you mentioned, cybersecurity, 127 00:06:34,520 --> 00:06:37,520 Speaker 5: there's so many different flavors of where cybersecurity exists, whether 128 00:06:37,520 --> 00:06:39,760 Speaker 5: it's in the end market, in your phone or your computer, 129 00:06:40,080 --> 00:06:44,120 Speaker 5: whether it's in your enterprise or even whether it's within 130 00:06:44,200 --> 00:06:46,880 Speaker 5: the internet. So one really has to be very careful 131 00:06:47,160 --> 00:06:50,279 Speaker 5: in looking at the various players where they exist, whether 132 00:06:50,360 --> 00:06:52,760 Speaker 5: or not they have pricing power, and the sustainability of 133 00:06:52,760 --> 00:06:54,760 Speaker 5: that pricing power over a longer period of time. 134 00:06:56,120 --> 00:07:00,680 Speaker 3: Is your focus about the US paying the output FORMERHA 135 00:07:00,680 --> 00:07:03,960 Speaker 3: when it comes. There's been a lot of ongoing narrativists 136 00:07:04,000 --> 00:07:05,960 Speaker 3: whether China is ahead with AI or US, and it 137 00:07:06,000 --> 00:07:08,040 Speaker 3: feels as in the US still is. But where is 138 00:07:08,080 --> 00:07:10,360 Speaker 3: the global opportunity because as we reference at the top 139 00:07:10,400 --> 00:07:12,440 Speaker 3: of the show, European stocks are a record high. On 140 00:07:12,440 --> 00:07:14,320 Speaker 3: the back of this, Japanese docks managed to go on 141 00:07:14,320 --> 00:07:16,160 Speaker 3: the record high, and all of US are factoring in 142 00:07:16,240 --> 00:07:17,160 Speaker 3: AI because of that. 143 00:07:18,000 --> 00:07:20,640 Speaker 5: I think that the answer to this question is that 144 00:07:21,000 --> 00:07:24,640 Speaker 5: the predominance of the opportunities that we see are in 145 00:07:24,640 --> 00:07:29,559 Speaker 5: the United States. However, there are incredible opportunities overseas as well. 146 00:07:29,920 --> 00:07:34,200 Speaker 5: For example, ASM Lithography has a dominating position in the 147 00:07:34,240 --> 00:07:37,280 Speaker 5: area of lithography. This is an essential you cannot get 148 00:07:37,320 --> 00:07:40,160 Speaker 5: around it in using this tool to make the next 149 00:07:40,200 --> 00:07:44,120 Speaker 5: generation of semiconductors as well as the older generation of semiconductors. 150 00:07:44,600 --> 00:07:48,320 Speaker 5: This company is an incredibly innovative company, which is reflected 151 00:07:48,320 --> 00:07:52,080 Speaker 5: in its margin profile, grows profit margins, operating margins, free 152 00:07:52,080 --> 00:07:56,440 Speaker 5: cash flow margins, and so we do find opportunities overseas 153 00:07:56,560 --> 00:07:59,880 Speaker 5: as well, but the majority of the innovation that we're 154 00:08:00,320 --> 00:08:02,320 Speaker 5: and is in the United States today. 155 00:08:02,880 --> 00:08:05,160 Speaker 3: It's just been fantastic having your voice, your expertise on 156 00:08:05,200 --> 00:08:07,160 Speaker 3: the show. Thank You, you will come back, have a 157 00:08:07,160 --> 00:08:10,200 Speaker 3: wonderful weekend. Erika Klaarr, she's portfolio manager for the p 158 00:08:10,320 --> 00:08:13,640 Speaker 3: Jim Jennison Technology Fund, really taking us through all the 159 00:08:13,640 --> 00:08:14,520 Speaker 3: big hitters. 160 00:08:14,200 --> 00:08:14,520 Speaker 4: Of the week. 161 00:08:14,560 --> 00:08:17,720 Speaker 3: Mean while coming up WI another big hitter which eventually 162 00:08:17,800 --> 00:08:21,000 Speaker 3: might become public. Reddit it's filing for its IPO. All 163 00:08:21,120 --> 00:08:24,280 Speaker 3: the details on this company that's long been waiting to 164 00:08:24,320 --> 00:08:26,240 Speaker 3: get into the public markets. Meanwhile, let's go to those 165 00:08:26,240 --> 00:08:28,400 Speaker 3: public markets check in on what's happening with Walmart. 166 00:08:28,480 --> 00:08:32,160 Speaker 4: Up sixtens of percent. We're basically seeing flat. 167 00:08:31,840 --> 00:08:34,000 Speaker 3: Though on the company that it's looking to be acquiring 168 00:08:34,520 --> 00:08:37,000 Speaker 3: a ten spot ninety nine Viseo holdings. 169 00:08:37,040 --> 00:08:38,360 Speaker 4: Of course, Walmart's. 170 00:08:37,920 --> 00:08:41,240 Speaker 3: Acquisition of Video is a warning bell, according to Massachusetts 171 00:08:41,280 --> 00:08:42,520 Speaker 3: Democrat Elizabeth Warren. 172 00:08:42,840 --> 00:08:44,200 Speaker 4: She's putting this in a post on. 173 00:08:44,160 --> 00:08:47,280 Speaker 3: Social media platform x In fact, regulators should scrutinize this 174 00:08:47,400 --> 00:08:50,040 Speaker 3: merger and they will potentially be looking as to whether 175 00:08:50,040 --> 00:08:52,880 Speaker 3: it will extend Walmart's dominance, especially threatened competition. 176 00:08:52,960 --> 00:08:53,360 Speaker 4: She says. 177 00:08:53,480 --> 00:08:55,920 Speaker 3: Remember Walmart also gained on some strong results earlier in 178 00:08:56,000 --> 00:08:56,280 Speaker 3: the week. 179 00:08:56,559 --> 00:09:10,960 Speaker 4: This is Roommate Technology. 180 00:09:12,040 --> 00:09:15,200 Speaker 3: Let's talk about potential IPOs San Francisco, BA social media 181 00:09:15,200 --> 00:09:18,400 Speaker 3: company read it and has publicly filed for that IPO. 182 00:09:18,559 --> 00:09:19,960 Speaker 4: Long waited, and. 183 00:09:19,960 --> 00:09:21,160 Speaker 3: Of course it's going to be a big test for 184 00:09:21,240 --> 00:09:24,280 Speaker 3: VC backtech IPOs for the year. Here to break down 185 00:09:24,320 --> 00:09:26,240 Speaker 3: what we now know from the S one filing for 186 00:09:26,320 --> 00:09:29,000 Speaker 3: New Meg's Katie Rufe, who you've been tracking this closely, 187 00:09:29,040 --> 00:09:32,600 Speaker 3: waiting with baited breath, and we have ultimately got to 188 00:09:32,600 --> 00:09:34,800 Speaker 3: group to the fact that this company is not yet profitable. 189 00:09:36,440 --> 00:09:39,400 Speaker 6: That's true, that's right. They reported they have over eight 190 00:09:39,520 --> 00:09:42,800 Speaker 6: hundred million in annual revenue, but they are not profitable. 191 00:09:42,960 --> 00:09:46,840 Speaker 6: They lost less than one hundred million last year. Their 192 00:09:46,920 --> 00:09:51,800 Speaker 6: losses are shrinking and their revenue is growing, but not profitable. 193 00:09:52,040 --> 00:09:56,000 Speaker 6: They are hoping that this new AI partnership is going 194 00:09:56,080 --> 00:10:01,000 Speaker 6: to be what excites Wall Street, the partnership with Google, 195 00:10:01,240 --> 00:10:04,439 Speaker 6: and they're thinking that this is the time to announce that, 196 00:10:04,679 --> 00:10:06,880 Speaker 6: you know, the Google partnership that's going to scrape some 197 00:10:06,920 --> 00:10:10,200 Speaker 6: of their data from Reddit will excite. 198 00:10:10,440 --> 00:10:12,520 Speaker 3: And we'll see whether, of course that extends to other 199 00:10:12,600 --> 00:10:15,520 Speaker 3: large language models, most notably open Ai, where we understand 200 00:10:15,559 --> 00:10:17,680 Speaker 3: now that sal Maltman, who is a temporary CEO for 201 00:10:17,760 --> 00:10:20,520 Speaker 3: the company, is of course a big shareholder. But Katie 202 00:10:20,679 --> 00:10:22,079 Speaker 3: remind us who is going. 203 00:10:21,920 --> 00:10:24,000 Speaker 4: To be winning, who is whether or not they win. 204 00:10:24,120 --> 00:10:26,160 Speaker 3: Remember, this is kind of a down round compared to 205 00:10:26,200 --> 00:10:30,000 Speaker 3: its last money in from vcs at a ten billion valuation. 206 00:10:30,240 --> 00:10:34,920 Speaker 3: But are we anticipating some good liquidity events for some 207 00:10:35,040 --> 00:10:36,720 Speaker 3: KEYVC names out there. 208 00:10:38,000 --> 00:10:40,600 Speaker 6: Well, so Bloomberg has reported that they might just be 209 00:10:40,720 --> 00:10:43,800 Speaker 6: valued about five billion when they go public, although it 210 00:10:43,880 --> 00:10:46,800 Speaker 6: remains to be seen because a lot of this just 211 00:10:46,840 --> 00:10:50,000 Speaker 6: gets socided the night before based on how the market 212 00:10:50,120 --> 00:10:54,559 Speaker 6: is trading. They have. You know, it's interesting because they've 213 00:10:54,559 --> 00:10:56,720 Speaker 6: been around since two thousand and five, so some of 214 00:10:56,760 --> 00:11:01,360 Speaker 6: their early shareholders are no longer major in vesters, you know, 215 00:11:01,480 --> 00:11:04,720 Speaker 6: Conde Nasts actually they've been a major shareholder and Reddit 216 00:11:04,800 --> 00:11:07,840 Speaker 6: and so this has been a long time coming for 217 00:11:07,920 --> 00:11:12,239 Speaker 6: their investment. But you look at some of the early names, 218 00:11:12,280 --> 00:11:17,040 Speaker 6: like a founder Alexis o'hanian. He wasn't even on the prospectus. 219 00:11:17,600 --> 00:11:20,760 Speaker 6: He did not make the cuite for a five percent shareholder, 220 00:11:20,800 --> 00:11:22,880 Speaker 6: which is what it's required to see in the filing. 221 00:11:23,040 --> 00:11:26,400 Speaker 6: So you know, at this point, since Reddit's been around 222 00:11:26,559 --> 00:11:29,000 Speaker 6: nineteen years, I would imagine a lot of the original 223 00:11:29,000 --> 00:11:34,040 Speaker 6: shareholders actually sold shares on the secondary markets and got 224 00:11:34,120 --> 00:11:37,439 Speaker 6: some early liquidity before the actual liquidity event. 225 00:11:37,920 --> 00:11:41,480 Speaker 3: Advanced Magazine publishes, as you say, the new house family 226 00:11:41,520 --> 00:11:44,640 Speaker 3: behind Conye Nast, and plenty of other publishing set to 227 00:11:44,679 --> 00:11:47,040 Speaker 3: be a Kia and or in this particular event. 228 00:11:47,200 --> 00:11:48,000 Speaker 4: We thank you, Katie. 229 00:11:48,000 --> 00:11:50,520 Speaker 3: We've just breaking down the intricacies of what's going on. 230 00:11:50,600 --> 00:11:53,280 Speaker 3: Let's get into well that secondary market, how active it is, 231 00:11:53,280 --> 00:11:55,559 Speaker 3: how positive is on Reddit getting to any sort of 232 00:11:55,600 --> 00:11:58,360 Speaker 3: whipne it anywhere near a five billion dollar evaluation. We've 233 00:11:58,360 --> 00:12:01,600 Speaker 3: got Brian Lynch with us of Market inside of Equityzen 234 00:12:01,679 --> 00:12:04,280 Speaker 3: which connects to a holders of private companies with invested 235 00:12:04,360 --> 00:12:07,960 Speaker 3: seeking alternative investments, and just how active has read it 236 00:12:08,000 --> 00:12:09,800 Speaker 3: been in the secondary market. 237 00:12:10,880 --> 00:12:14,240 Speaker 7: Redda has definitely been a popular name in the secondary 238 00:12:14,240 --> 00:12:17,120 Speaker 7: market over the years since Katie said, this is a 239 00:12:17,240 --> 00:12:20,160 Speaker 7: nineteen year old company, So there has been a lot 240 00:12:20,160 --> 00:12:24,720 Speaker 7: of demand foreign liquidity from early shareholders over time. 241 00:12:25,200 --> 00:12:27,320 Speaker 8: You know. We know they did a tender offer in 242 00:12:27,400 --> 00:12:29,000 Speaker 8: twenty twenty one, so I think that. 243 00:12:29,080 --> 00:12:32,480 Speaker 7: Helped alleviate maybe some of that liquidity need. But I 244 00:12:32,520 --> 00:12:35,280 Speaker 7: think there's still a lot of demand for a liquidity 245 00:12:35,360 --> 00:12:38,199 Speaker 7: that will come you know, via the IPO. For what 246 00:12:38,240 --> 00:12:41,880 Speaker 7: we've seen from you know, trades that have been reported 247 00:12:41,920 --> 00:12:44,120 Speaker 7: recently in the secondary market is about a four and 248 00:12:44,120 --> 00:12:46,880 Speaker 7: a half for four point eight billion dollar valuation. So 249 00:12:47,400 --> 00:12:50,160 Speaker 7: the fact that they're eyeing a five billion dollar valuation 250 00:12:50,480 --> 00:12:53,400 Speaker 7: kind of makes sense since companies tend to trade at 251 00:12:53,440 --> 00:12:56,199 Speaker 7: a discount in the private markets where you don't have that. 252 00:12:56,200 --> 00:12:58,520 Speaker 8: Same liquidity that you do in the public markets. 253 00:12:59,040 --> 00:13:01,240 Speaker 3: Who if you can on and it's a tool from 254 00:13:01,280 --> 00:13:02,840 Speaker 3: the activity in the secondary market. 255 00:13:03,320 --> 00:13:04,760 Speaker 4: Is this going to be a retail name? 256 00:13:05,080 --> 00:13:09,160 Speaker 3: Given well ready it became synonymous with means stock investing 257 00:13:09,160 --> 00:13:11,520 Speaker 3: because the wool Street bets is it more likely to 258 00:13:11,520 --> 00:13:14,760 Speaker 3: be bought by retail investment? Will institutional players be interested 259 00:13:14,800 --> 00:13:17,400 Speaker 3: in a company that isn't yet posting profits. 260 00:13:18,880 --> 00:13:22,480 Speaker 7: I think they're really betting on there being retail interest 261 00:13:22,520 --> 00:13:24,760 Speaker 7: in this name or you know, in their s one 262 00:13:24,800 --> 00:13:26,959 Speaker 7: they even say as a risk factor, the fact that 263 00:13:26,960 --> 00:13:30,040 Speaker 7: there is retail interest, or they expect retail interest, is 264 00:13:30,120 --> 00:13:31,240 Speaker 7: going to cause. 265 00:13:31,040 --> 00:13:32,360 Speaker 8: Volatility in the stock. 266 00:13:32,760 --> 00:13:36,680 Speaker 7: The fact that they are issuing shares to seventy five 267 00:13:36,720 --> 00:13:39,880 Speaker 7: thousand power users, or allowing those users to buy into 268 00:13:39,920 --> 00:13:43,560 Speaker 7: the IPO, will also create some volatility. Since there's no 269 00:13:43,679 --> 00:13:45,839 Speaker 7: lock up to those shares, they're going to allow those 270 00:13:45,840 --> 00:13:47,439 Speaker 7: shares to trade freely. 271 00:13:47,600 --> 00:13:49,800 Speaker 8: So I think they're expecting a lot of. 272 00:13:49,760 --> 00:13:53,599 Speaker 7: Retail activity, which isn't likely to increase the volatility of 273 00:13:53,640 --> 00:13:57,679 Speaker 7: the stock, especially in its early days. From an institutional 274 00:13:57,679 --> 00:14:00,640 Speaker 7: investor perspective, I think you're right. You know, we've seen 275 00:14:00,920 --> 00:14:06,440 Speaker 7: over time that institutions are less interested in these unprofitable companies. 276 00:14:06,480 --> 00:14:09,559 Speaker 8: And Reddit is interesting because while they are. 277 00:14:09,440 --> 00:14:12,839 Speaker 7: A nineteen year old business, they really didn't start monetizing 278 00:14:13,000 --> 00:14:15,040 Speaker 7: until twenty so their. 279 00:14:14,880 --> 00:14:17,760 Speaker 8: Monetization engine is relatively. 280 00:14:17,240 --> 00:14:21,360 Speaker 7: Young and unproven, and advertising is ninety eight percent of 281 00:14:21,360 --> 00:14:25,080 Speaker 7: that engine now. And there are opportunities for them on 282 00:14:25,120 --> 00:14:27,920 Speaker 7: the data license in front, as Katie mentioned the Google 283 00:14:27,920 --> 00:14:30,600 Speaker 7: partnership they talked about this week, but a lot of 284 00:14:30,600 --> 00:14:35,320 Speaker 7: that is very forward looking and unproven, so I'm curious 285 00:14:35,360 --> 00:14:37,160 Speaker 7: to see how institutions. 286 00:14:37,280 --> 00:14:39,160 Speaker 8: You take that into account. 287 00:14:38,800 --> 00:14:41,240 Speaker 3: And Steve Hoffman, having been there at its birth in 288 00:14:41,240 --> 00:14:45,280 Speaker 3: two thousand and five, still driving that new iteration of Reddit. 289 00:14:45,640 --> 00:14:48,760 Speaker 4: And where is the risk factor in cozying. 290 00:14:48,400 --> 00:14:52,480 Speaker 3: Up with large language model makers, with the big tech 291 00:14:52,560 --> 00:14:54,400 Speaker 3: firms that want to scrape the data? 292 00:14:55,480 --> 00:14:56,160 Speaker 8: Yeah, I think. 293 00:14:56,480 --> 00:14:58,440 Speaker 7: I mean, we've heard this from the Reddit community that 294 00:14:58,840 --> 00:15:02,000 Speaker 7: there has been some pushback about this and concern, but 295 00:15:02,040 --> 00:15:06,400 Speaker 7: it really is these human conversations that are needed to 296 00:15:06,440 --> 00:15:10,600 Speaker 7: train these models. And Reddit has, you know, billions of 297 00:15:10,880 --> 00:15:14,360 Speaker 7: posts and comments on its platform that are the exact 298 00:15:14,360 --> 00:15:16,440 Speaker 7: types of posts and comments that will help. 299 00:15:16,280 --> 00:15:17,120 Speaker 8: Train those models. 300 00:15:17,120 --> 00:15:20,320 Speaker 7: So I think there could be a little backlash from 301 00:15:20,480 --> 00:15:25,680 Speaker 7: users on the platform, but it is a huge monetization opportunity. 302 00:15:26,320 --> 00:15:29,320 Speaker 7: At the sixty million dollar contract they're talking about with Google, 303 00:15:29,400 --> 00:15:31,680 Speaker 7: that only makes up about seven and a half percent 304 00:15:31,680 --> 00:15:33,840 Speaker 7: of their current revenue, But if this is something that 305 00:15:33,880 --> 00:15:36,480 Speaker 7: they can replicate with others, it could become a much 306 00:15:36,480 --> 00:15:39,640 Speaker 7: more sizeable part of their business. But an interesting thing 307 00:15:39,720 --> 00:15:43,240 Speaker 7: that they do note is that these language learning models. 308 00:15:43,000 --> 00:15:44,640 Speaker 8: Could also hinder their business. 309 00:15:44,720 --> 00:15:48,520 Speaker 7: So if people go to chat GBT instead of Reddit 310 00:15:48,600 --> 00:15:51,960 Speaker 7: to ask whatever question they'd ask on Reddit, Reddit may 311 00:15:52,240 --> 00:15:55,080 Speaker 7: lose daily active users and that's really going to hurt 312 00:15:55,120 --> 00:15:56,520 Speaker 7: their ad revenue in the end. 313 00:15:56,600 --> 00:15:57,840 Speaker 8: So it's a double edged sword. 314 00:15:58,400 --> 00:16:03,600 Speaker 3: Well said, I'm interested in that advertising focus. Ultimately, when 315 00:16:03,640 --> 00:16:06,760 Speaker 3: analysts go out there and try to decide whose reddits 316 00:16:06,800 --> 00:16:10,640 Speaker 3: competitors are, are they immediately going to be looking to alphabet, 317 00:16:10,920 --> 00:16:13,440 Speaker 3: to meta to other social media platforms. 318 00:16:14,640 --> 00:16:18,160 Speaker 7: I think those are the obvious, you know, competitors in 319 00:16:18,160 --> 00:16:21,080 Speaker 7: the space, and this market has gotten a lot more 320 00:16:21,080 --> 00:16:25,160 Speaker 7: competitive as ad dollars have been pulled back. What Reddit 321 00:16:25,280 --> 00:16:29,160 Speaker 7: is really trying to sell investors on is the fact 322 00:16:29,200 --> 00:16:32,920 Speaker 7: that they can allow advertisers to reach a much more 323 00:16:33,080 --> 00:16:37,760 Speaker 7: niche target audience. So, you know, you're a sleeping bag manufacturer, 324 00:16:37,840 --> 00:16:39,640 Speaker 7: you want to talk to people who are camping. We 325 00:16:39,720 --> 00:16:43,239 Speaker 7: have a conversation of thousands of people who are specifically 326 00:16:43,280 --> 00:16:46,640 Speaker 7: talking about this and their ability to actually convert people. 327 00:16:47,000 --> 00:16:50,320 Speaker 7: From their own research, they've shown that sixty one percent 328 00:16:50,320 --> 00:16:52,960 Speaker 7: of their users say they're more likely to trust an 329 00:16:52,960 --> 00:16:54,240 Speaker 7: ad that comes from Reddit. 330 00:16:54,560 --> 00:16:55,840 Speaker 8: So if that can. 331 00:16:55,720 --> 00:16:59,560 Speaker 7: Be proven in the clicks and the impressions that these 332 00:16:59,560 --> 00:17:02,160 Speaker 7: ads get, they may have a bit of an edge, 333 00:17:02,200 --> 00:17:05,399 Speaker 7: even though their audience is much smaller than these other platforms, 334 00:17:05,600 --> 00:17:08,000 Speaker 7: but I think we're still early improving now. 335 00:17:08,880 --> 00:17:11,560 Speaker 3: Trying to be proving out the niche factor and whether 336 00:17:11,560 --> 00:17:13,919 Speaker 3: that's a drawer. Brian Lynch really great to catch up 337 00:17:13,960 --> 00:17:14,119 Speaker 3: with you. 338 00:17:14,200 --> 00:17:14,600 Speaker 4: Thank you. 339 00:17:22,160 --> 00:17:25,600 Speaker 3: Time now for talking tech. First up, GM's autonomous driving unit, Cruise, 340 00:17:26,040 --> 00:17:28,399 Speaker 3: is nearing the resumption of its robotaxi testing after the 341 00:17:28,400 --> 00:17:30,879 Speaker 3: grounding of its fleet last year. Now, according to sources, 342 00:17:30,920 --> 00:17:34,600 Speaker 3: Cruises in talks as several metro areas Houston Dallas, for example, 343 00:17:34,800 --> 00:17:37,520 Speaker 3: about test driving on public roads with safety drivers, and 344 00:17:37,600 --> 00:17:39,960 Speaker 3: before the suspension of the operations, company had hundreds of 345 00:17:39,960 --> 00:17:43,160 Speaker 3: cars in San Francisco and smaller numbers across Austin, Houston, 346 00:17:43,240 --> 00:17:46,520 Speaker 3: and Phoenix. Meanwhile, the investment firm that manages part of 347 00:17:46,560 --> 00:17:50,040 Speaker 3: the fortune of Ali Baba chairman Joe Zai Bluepool, It's 348 00:17:50,040 --> 00:17:53,240 Speaker 3: called It's all Over thirty four million Blue Owl shares 349 00:17:53,359 --> 00:17:55,359 Speaker 3: for eighty three percent of its remaining holdings in that 350 00:17:55,480 --> 00:17:56,800 Speaker 3: alternative asset Giant. 351 00:17:57,040 --> 00:17:58,680 Speaker 4: Now, the shares would have been worth about. 352 00:17:58,440 --> 00:18:01,119 Speaker 3: One or sixty million dollars in weighted average price at 353 00:18:01,119 --> 00:18:04,000 Speaker 3: the stock over the last three months. Now, let's turn 354 00:18:04,040 --> 00:18:06,479 Speaker 3: our attention to some other shares that are being hit 355 00:18:06,560 --> 00:18:08,560 Speaker 3: at the moment. Warner Brothers Discovery. We were just looking 356 00:18:08,600 --> 00:18:11,080 Speaker 3: at it before the break media company reporting its fourth 357 00:18:11,119 --> 00:18:13,600 Speaker 3: quarter revenue profits. They fell short of estimates, and we're 358 00:18:13,600 --> 00:18:15,200 Speaker 3: seeing the stock at a record low. 359 00:18:15,600 --> 00:18:17,080 Speaker 4: Chris pal Mary joins us. 360 00:18:16,960 --> 00:18:20,920 Speaker 3: Now on basically like weakness in linear television, weakness and 361 00:18:20,960 --> 00:18:23,480 Speaker 3: the advertising spend. I mean, was there any area that 362 00:18:23,600 --> 00:18:24,080 Speaker 3: was good? 363 00:18:25,920 --> 00:18:28,600 Speaker 9: Yeah, I guess you could say if things weren't that bad. 364 00:18:28,840 --> 00:18:33,920 Speaker 9: In their direct to consumer the streaming business, it was unprofitable, 365 00:18:33,960 --> 00:18:37,320 Speaker 9: but for the full year it was profitable, and the 366 00:18:37,400 --> 00:18:40,720 Speaker 9: losses were much lower in the fourth quarter, and subscribers 367 00:18:40,720 --> 00:18:42,439 Speaker 9: were a little bit better than they hoped, but not 368 00:18:42,600 --> 00:18:48,280 Speaker 9: dramatic growth. Actually lost subscribers in domestically instilled way behind 369 00:18:48,320 --> 00:18:50,400 Speaker 9: Netflix and Disney in that department. 370 00:18:51,320 --> 00:18:55,320 Speaker 3: And all of this just highlights the dia straits that 371 00:18:55,359 --> 00:18:58,360 Speaker 3: basically the entire ecosystem finds itself in. We are understanding 372 00:18:58,400 --> 00:18:59,600 Speaker 3: there's going to be M and A that's going to 373 00:18:59,600 --> 00:19:02,440 Speaker 3: be consolid because a lot of these companies are struggling 374 00:19:02,440 --> 00:19:03,480 Speaker 3: with the same sort of headwinds. 375 00:19:03,520 --> 00:19:06,600 Speaker 9: Ran Yeah, And one of Brothers CEO, David Savo, is 376 00:19:06,640 --> 00:19:09,120 Speaker 9: pretty candid on the call. He said, this really does 377 00:19:09,200 --> 00:19:12,280 Speaker 9: illustrate all the challenges we're facing. I mean TV, traditional 378 00:19:12,280 --> 00:19:14,840 Speaker 9: TV advertising down at double digits. 379 00:19:14,960 --> 00:19:17,800 Speaker 10: And you know, the strikes really hurt them. 380 00:19:17,880 --> 00:19:21,520 Speaker 9: It turns out hoots last year, actors and writers being 381 00:19:21,640 --> 00:19:25,879 Speaker 9: out of not working, and so that studio business was down. 382 00:19:26,440 --> 00:19:28,880 Speaker 9: You know, Warner Brothers had a big push in December, 383 00:19:29,000 --> 00:19:31,199 Speaker 9: releasing three big movies at once. It was kind of 384 00:19:31,200 --> 00:19:36,359 Speaker 9: bold where revenue theatrically we're up, where profits were down, Aquaman. 385 00:19:36,320 --> 00:19:37,880 Speaker 8: Being the biggest disappointment there. 386 00:19:38,400 --> 00:19:40,719 Speaker 9: So there's a lot of they talked about on the call, 387 00:19:40,840 --> 00:19:44,359 Speaker 9: the superhero fatigue sort of. So there's a lot of 388 00:19:44,680 --> 00:19:46,639 Speaker 9: work to be done in these traditional media companies. 389 00:19:47,040 --> 00:19:49,560 Speaker 3: Sure is. And I know you'll be across at Chris Palmary. 390 00:19:49,600 --> 00:19:59,399 Speaker 3: We really appreciate it. Welcome back to being that technology 391 00:19:59,440 --> 00:20:01,359 Speaker 3: im caindin High in New York. Let's focus in on 392 00:20:01,400 --> 00:20:04,359 Speaker 3: a company that eventually will have its market capitalization for 393 00:20:04,440 --> 00:20:07,000 Speaker 3: all to see on the public markets Reddit. Of course, 394 00:20:07,040 --> 00:20:10,120 Speaker 3: company filing publicly for its IPO just yesterday after the Bell. 395 00:20:10,040 --> 00:20:12,240 Speaker 4: One name in the filing stood out. 396 00:20:12,440 --> 00:20:15,760 Speaker 3: He's everywhere Open AI CEO Sam Altman was listed to 397 00:20:15,760 --> 00:20:18,800 Speaker 3: one of the company's major shareholders, joining us now is 398 00:20:18,840 --> 00:20:21,480 Speaker 3: Bloomgg's Ryan Gould, and. 399 00:20:20,760 --> 00:20:21,880 Speaker 4: We shouldn't be surprised. 400 00:20:21,880 --> 00:20:24,359 Speaker 3: He was a for eight whole days the interim CEO 401 00:20:24,440 --> 00:20:27,720 Speaker 3: of this company. He of course was there at the 402 00:20:27,720 --> 00:20:31,840 Speaker 3: there at the y Combinator alongside the founders of Reddit 403 00:20:31,920 --> 00:20:35,400 Speaker 3: back in two thousands, early two thousands. But why does 404 00:20:35,400 --> 00:20:37,240 Speaker 3: he hold so much in the stock, Like who else 405 00:20:37,359 --> 00:20:38,880 Speaker 3: is also holding a lot of the stock here? 406 00:20:38,920 --> 00:20:41,919 Speaker 11: Well, I mean, you know, he let their series be 407 00:20:42,119 --> 00:20:46,400 Speaker 11: fifty million dollars in twenty fourteen. You know, he's sitting 408 00:20:46,440 --> 00:20:50,440 Speaker 11: alongside the advanced magazine publishers entity that is sort of 409 00:20:50,520 --> 00:20:53,960 Speaker 11: the new House family, the big Conde lost family that 410 00:20:54,040 --> 00:20:57,360 Speaker 11: owns around thirty four percent of the stock there. 411 00:20:58,200 --> 00:20:59,840 Speaker 10: You know, the new House family. 412 00:20:59,600 --> 00:21:01,640 Speaker 11: Sort of bought read it in two thousand and six 413 00:21:01,720 --> 00:21:04,520 Speaker 11: then spun it out in twenty eleven. So you know, 414 00:21:04,560 --> 00:21:06,719 Speaker 11: there's still a lot of Kerry. But I think, Caroline, 415 00:21:06,720 --> 00:21:09,439 Speaker 11: what's interesting is that this is kind of an ipio 416 00:21:09,480 --> 00:21:12,160 Speaker 11: for the moment. It has everything. It has, Ai has 417 00:21:12,200 --> 00:21:15,639 Speaker 11: sam Altman, it has advertising. It's reckoning with you know, 418 00:21:15,920 --> 00:21:18,320 Speaker 11: large language models and what it means for partnerships and 419 00:21:18,359 --> 00:21:21,560 Speaker 11: suddenly with Google and such. So yeah, I mean it's really, 420 00:21:21,760 --> 00:21:23,640 Speaker 11: it's really an ipio for the moment, I would. 421 00:21:23,440 --> 00:21:26,400 Speaker 3: Say, and ipeo that comes at time where markets are 422 00:21:26,440 --> 00:21:29,320 Speaker 3: at record or near record highs. We've had just smp 423 00:21:29,400 --> 00:21:31,359 Speaker 3: A clips a new one we've just had, you know, 424 00:21:31,480 --> 00:21:34,160 Speaker 3: Europeans stock markets are a record high, Japanese stock markets 425 00:21:34,160 --> 00:21:36,720 Speaker 3: are record high. What do you think the narrative has 426 00:21:36,760 --> 00:21:39,480 Speaker 3: to be to ensure that we don't question the market 427 00:21:39,480 --> 00:21:42,280 Speaker 3: cap too much. We're hearing from sources what about a 428 00:21:42,320 --> 00:21:44,560 Speaker 3: five billion dollar level for Reddit. 429 00:21:44,840 --> 00:21:45,840 Speaker 4: But that's a huge. 430 00:21:45,640 --> 00:21:48,080 Speaker 3: Markdown from where it recently, well not recently but a 431 00:21:48,119 --> 00:21:49,320 Speaker 3: few years ago, raised money. 432 00:21:49,400 --> 00:21:49,719 Speaker 4: It is. 433 00:21:49,800 --> 00:21:52,000 Speaker 11: It's a good point, and I think much of the 434 00:21:52,240 --> 00:21:55,320 Speaker 11: sort of talk so far, you know, on the testing, testing, 435 00:21:55,359 --> 00:21:57,359 Speaker 11: the waters meetings has been around. You know, let's not 436 00:21:57,400 --> 00:22:00,480 Speaker 11: get too ahead of ourselves here. Let's be realistic. This 437 00:22:00,680 --> 00:22:03,520 Speaker 11: is probably, you know, the first large venture capital back 438 00:22:03,600 --> 00:22:06,119 Speaker 11: tech alperiod we've had in a while. Obviously Clavier happened 439 00:22:06,200 --> 00:22:07,840 Speaker 11: last year, but this is kind of a different breed. 440 00:22:08,520 --> 00:22:10,600 Speaker 11: It's had a very story journey, and so I think, 441 00:22:10,640 --> 00:22:12,840 Speaker 11: you know, the banks investors are sort of coming together 442 00:22:12,880 --> 00:22:15,320 Speaker 11: and saying, well, you know, let's not really push this 443 00:22:15,400 --> 00:22:17,960 Speaker 11: too hard. Let's not end up in a situation where 444 00:22:17,960 --> 00:22:20,080 Speaker 11: we feel like, you know, we've been of more, we 445 00:22:20,160 --> 00:22:22,320 Speaker 11: can more than we can chew. And I think that 446 00:22:22,400 --> 00:22:24,360 Speaker 11: kind of reflects and how Reddit thinking about it as well. 447 00:22:24,400 --> 00:22:26,320 Speaker 11: It kind of wants to get past this history that 448 00:22:26,320 --> 00:22:28,119 Speaker 11: it's had for the past two years of being a 449 00:22:28,160 --> 00:22:30,959 Speaker 11: company that's just waiting and waiting and waiting to go public, 450 00:22:31,800 --> 00:22:33,760 Speaker 11: and it wants to get on with being a public company. 451 00:22:34,240 --> 00:22:36,240 Speaker 4: Steve Harfman himself wants to get on when. 452 00:22:36,080 --> 00:22:38,679 Speaker 3: Being a public CEO, having helped birst It back in 453 00:22:38,720 --> 00:22:40,920 Speaker 3: two thousand and five and still now he is the 454 00:22:40,960 --> 00:22:43,760 Speaker 3: current CEO. Rangled great to catch up with him as 455 00:22:43,880 --> 00:22:46,480 Speaker 3: IPO markets get a little bit more exciting now. Turning 456 00:22:46,480 --> 00:22:49,720 Speaker 3: from IPOs to the Moon to space more broadly, American 457 00:22:49,760 --> 00:22:52,240 Speaker 3: made lander It touched down on the Moon for the 458 00:22:52,280 --> 00:22:55,040 Speaker 3: first time since the Apollo era, and it happened last night. 459 00:22:55,200 --> 00:22:57,720 Speaker 3: I think a string of what have been pretty obvious 460 00:22:57,720 --> 00:23:01,199 Speaker 3: failures and making it the first prime at spacecraft to 461 00:23:01,280 --> 00:23:04,719 Speaker 3: ever reach the lunar surface. Intact Nalanda, built by Houston 462 00:23:04,760 --> 00:23:07,960 Speaker 3: based Intuitive Machines, reach the Moon at six twenty three 463 00:23:08,000 --> 00:23:11,440 Speaker 3: pm New York time on Thursday is what NASA Administrator 464 00:23:11,480 --> 00:23:13,160 Speaker 3: Bill Nelson had to say about. 465 00:23:12,920 --> 00:23:19,040 Speaker 12: The feet a commercial lander name Odysseus, powered by a 466 00:23:19,080 --> 00:23:25,960 Speaker 12: company called Intuitive Machines, launched upon a SpaceX rocket, carrying 467 00:23:26,160 --> 00:23:32,520 Speaker 12: a bounty of NASA scientific instruments and bearing the dream 468 00:23:32,560 --> 00:23:33,560 Speaker 12: of a new adventure. 469 00:23:35,760 --> 00:23:37,840 Speaker 3: Here to talk us through that dream of a new adventures, 470 00:23:37,880 --> 00:23:41,600 Speaker 3: Bloomberg's Lauren Grush and Lauren this shows us not just 471 00:23:41,640 --> 00:23:43,640 Speaker 3: a dream, but the reality of the way in which 472 00:23:43,760 --> 00:23:47,440 Speaker 3: NASA is now working. It is turning to private companies, 473 00:23:47,600 --> 00:23:50,440 Speaker 3: and not just SpaceX anymore, but more start ups, more 474 00:23:50,480 --> 00:23:55,280 Speaker 3: other companies to help it basically make space a bit cheaper, right. 475 00:23:55,400 --> 00:23:57,640 Speaker 1: It's it's you know, NASA does want to go back 476 00:23:57,680 --> 00:23:58,960 Speaker 1: to the Moon, but they want to go back to 477 00:23:59,000 --> 00:24:01,200 Speaker 1: your moon in a very different way where they bring 478 00:24:01,440 --> 00:24:04,240 Speaker 1: many plenty of companies with them. And this was such 479 00:24:04,280 --> 00:24:06,879 Speaker 1: a great example of kind of this new paradigm shift 480 00:24:06,880 --> 00:24:09,960 Speaker 1: that NASA is working with. This was a private company, 481 00:24:10,040 --> 00:24:12,280 Speaker 1: I mean as a publicly traded company, but a private 482 00:24:12,280 --> 00:24:15,359 Speaker 1: sector entity landing on the Moon. They did receive some 483 00:24:15,520 --> 00:24:18,720 Speaker 1: development funding from NASA a little less than one hundred 484 00:24:18,720 --> 00:24:21,440 Speaker 1: and eighteen million dollars. They also had to raise their 485 00:24:21,440 --> 00:24:24,080 Speaker 1: own capital in order to get the rest of the 486 00:24:24,080 --> 00:24:26,000 Speaker 1: funding they needed to make this mission work. 487 00:24:26,760 --> 00:24:29,199 Speaker 3: We now see a market cap of more than a 488 00:24:29,240 --> 00:24:32,320 Speaker 3: billion for intuitive machines, and we've seen it rise about 489 00:24:32,320 --> 00:24:34,160 Speaker 3: two hundred and twenty six million dollars in the day. 490 00:24:34,200 --> 00:24:38,920 Speaker 4: We're twenty eight percent. Where does this all point us next? 491 00:24:39,040 --> 00:24:42,720 Speaker 3: What are we anticipating that is achieved after this? We 492 00:24:42,800 --> 00:24:46,399 Speaker 3: understand about well, south pole, more of the moon, but 493 00:24:46,720 --> 00:24:48,680 Speaker 3: what are the next situations of the space economy? 494 00:24:49,600 --> 00:24:49,840 Speaker 4: Right? 495 00:24:49,880 --> 00:24:52,400 Speaker 1: So there are really two goals with this mission. One 496 00:24:52,440 --> 00:24:55,960 Speaker 1: you mentioned this was the first mission to land closest 497 00:24:55,960 --> 00:24:58,200 Speaker 1: to the south pole of the Moon. India also landing 498 00:24:58,240 --> 00:25:01,760 Speaker 1: near the south pole but an enticing place for NASA 499 00:25:01,800 --> 00:25:04,199 Speaker 1: because it's thought to have water ice, and so they 500 00:25:04,280 --> 00:25:06,080 Speaker 1: are curious to see if we can go there to 501 00:25:06,160 --> 00:25:08,960 Speaker 1: mine that water ice. It's where NASA hopes to land 502 00:25:09,040 --> 00:25:10,760 Speaker 1: future astronauts. 503 00:25:10,520 --> 00:25:12,000 Speaker 8: When they do return to the Moon. 504 00:25:12,359 --> 00:25:13,679 Speaker 10: But the goal is also. 505 00:25:13,520 --> 00:25:17,560 Speaker 1: To spur a commercial lunar economy. So the idea is 506 00:25:17,600 --> 00:25:21,280 Speaker 1: that NASA wanted to trigger the development of this commercial 507 00:25:21,320 --> 00:25:23,679 Speaker 1: lander so that the company could have a way to 508 00:25:23,720 --> 00:25:27,359 Speaker 1: transport NASA payloads, but then also in turn use that 509 00:25:27,480 --> 00:25:31,760 Speaker 1: lander to create and note their own business transporting experiments 510 00:25:31,760 --> 00:25:35,040 Speaker 1: and payloads to the Moon. So that lander had NASA 511 00:25:35,040 --> 00:25:38,040 Speaker 1: payloads on it, but it also had commercial customer payloads 512 00:25:38,080 --> 00:25:39,879 Speaker 1: on it. So the idea is to see, you know, 513 00:25:39,960 --> 00:25:42,240 Speaker 1: can that be a sustainable business moving forward? 514 00:25:42,560 --> 00:25:45,600 Speaker 3: And who knows what Jeff Coon's piece is going to 515 00:25:45,600 --> 00:25:47,160 Speaker 3: be doing rolling around on the Moon. 516 00:25:47,000 --> 00:25:47,760 Speaker 4: After this Lord? 517 00:25:47,880 --> 00:25:51,200 Speaker 3: But who are the other names out there? We put 518 00:25:51,320 --> 00:25:54,000 Speaker 3: so much of our exuberance around the space economy on 519 00:25:54,080 --> 00:25:56,959 Speaker 3: SpaceX call still a private company. We now look at 520 00:25:57,000 --> 00:25:59,840 Speaker 3: Intuitive Machines entering on Lexican, but who else has been 521 00:25:59,840 --> 00:26:02,080 Speaker 3: now them making moves and sometimes failing at that? 522 00:26:03,440 --> 00:26:07,560 Speaker 1: Right, So another company kind of considered Intuitive Machines's rival. 523 00:26:07,840 --> 00:26:11,280 Speaker 1: It was a company called Astrobotic. They actually launch launched 524 00:26:11,280 --> 00:26:13,960 Speaker 1: their lander first. They were another partner with NASA's through 525 00:26:14,000 --> 00:26:17,040 Speaker 1: the same program that Intuitive Machines was a partner with. 526 00:26:17,359 --> 00:26:20,480 Speaker 1: They launched in January, but unfortunately they suffered an engine 527 00:26:20,480 --> 00:26:24,080 Speaker 1: failure right after getting to space and ultimately precluded their 528 00:26:24,160 --> 00:26:26,600 Speaker 1: chances of actually attempting to touch down. 529 00:26:26,440 --> 00:26:28,400 Speaker 8: On the Moon, and they ended up bringing back that. 530 00:26:28,440 --> 00:26:31,800 Speaker 1: Lander to Earth and disposing it in the atmosphere. But 531 00:26:31,960 --> 00:26:34,760 Speaker 1: they're going to try again. They have another mission lined up. 532 00:26:34,760 --> 00:26:38,320 Speaker 1: Intuitive Machines has more missions lined up. There's another company, 533 00:26:37,840 --> 00:26:42,919 Speaker 1: Firefly Aerospace, that is also partnering with NASA. So NASA 534 00:26:43,000 --> 00:26:45,800 Speaker 1: is looking to you know, dole out funding to those 535 00:26:45,840 --> 00:26:47,919 Speaker 1: that really do want to make a business going to 536 00:26:47,960 --> 00:26:50,760 Speaker 1: the Moon. There are plenty of companies that are interested. 537 00:26:50,920 --> 00:26:53,879 Speaker 1: And you know, as this return to the Moon gets 538 00:26:54,119 --> 00:26:56,600 Speaker 1: more mature, I feel like there's going to be even 539 00:26:56,600 --> 00:26:58,480 Speaker 1: more opportunities for companies. 540 00:26:58,080 --> 00:27:00,359 Speaker 4: To get into the game. And long Golash going to 541 00:27:00,359 --> 00:27:01,560 Speaker 4: turn to you in those moments. 542 00:27:01,600 --> 00:27:04,320 Speaker 3: We thank you so much for talking us through well 543 00:27:04,440 --> 00:27:07,000 Speaker 3: really what it was meant by yesterday's landing. Meanwhile, coming 544 00:27:07,080 --> 00:27:10,640 Speaker 3: up we'll have all the details into how disputes within Klana. 545 00:27:11,000 --> 00:27:13,359 Speaker 3: That's of course, the fintech over in Europe has spilled 546 00:27:13,359 --> 00:27:16,600 Speaker 3: over into a high profile VC drama. It's coming up 547 00:27:16,600 --> 00:27:19,879 Speaker 3: next meanwhile, talking a drama. Unfortunately, there is some among 548 00:27:19,960 --> 00:27:22,560 Speaker 3: Rivian shares. Check this out in terms of a long 549 00:27:22,640 --> 00:27:26,560 Speaker 3: term share price chart of Rivian down almost ninety percent. 550 00:27:27,080 --> 00:27:30,399 Speaker 3: Of course, this on the back of some lackluster earnings 551 00:27:30,440 --> 00:27:32,479 Speaker 3: that were just posted after the bell on Wednesday, and 552 00:27:32,600 --> 00:27:34,320 Speaker 3: yesterday the stock fell hard as they said they were 553 00:27:34,320 --> 00:27:36,080 Speaker 3: going to be and letting go of. 554 00:27:36,000 --> 00:27:38,000 Speaker 4: Some staff as well. From New York. 555 00:27:38,560 --> 00:27:53,920 Speaker 3: This will be med technology. We're going to get into 556 00:27:53,920 --> 00:27:55,840 Speaker 3: a bit of a VC drama brewing at the moment. 557 00:27:55,880 --> 00:28:00,440 Speaker 3: Sequoia Capital has named a new board member for fintech Klana. Now, 558 00:28:00,440 --> 00:28:03,119 Speaker 3: this is an effort to a conflict between Well the 559 00:28:03,200 --> 00:28:06,240 Speaker 3: VC firm is from a partner Michael Moritz and Ashley 560 00:28:06,600 --> 00:28:09,200 Speaker 3: Well issues between two of the founders of Klana too, 561 00:28:09,520 --> 00:28:12,119 Speaker 3: Hitch help break it all down. Kind of extraordinary story 562 00:28:12,320 --> 00:28:15,000 Speaker 3: bringing baxst to Sarah McBride. So what's going on? What 563 00:28:15,119 --> 00:28:18,240 Speaker 3: was the spark of the issue that's occurred with Klana? 564 00:28:19,359 --> 00:28:23,000 Speaker 2: Oh, Caroline, it is such a mess. So what happened 565 00:28:23,080 --> 00:28:25,560 Speaker 2: is a little bit unclear, but it seems that there 566 00:28:25,640 --> 00:28:31,040 Speaker 2: was some sort of dispute at Klarna about a governance 567 00:28:31,240 --> 00:28:38,240 Speaker 2: or control issue and Sequoia Capital's partner, who was on 568 00:28:38,280 --> 00:28:44,560 Speaker 2: the board, Matt Miller, saw things one way and Michael Moritz, 569 00:28:44,640 --> 00:28:48,800 Speaker 2: a legendary VC who was until very recently a partner 570 00:28:48,920 --> 00:28:54,040 Speaker 2: at Sequoia, side another way. And the upshot is that 571 00:28:54,080 --> 00:28:57,600 Speaker 2: Michael Morritz still has his board seat. He now represents 572 00:28:57,680 --> 00:29:04,080 Speaker 2: a related firm called Sequoia Heritage and Matthew Miller, the 573 00:29:04,120 --> 00:29:08,000 Speaker 2: board member from Sequoia Capital, is out. I know that's 574 00:29:08,040 --> 00:29:11,560 Speaker 2: a little head spinning, but hopefully it makes a bit 575 00:29:11,600 --> 00:29:12,000 Speaker 2: of sense. 576 00:29:12,480 --> 00:29:15,440 Speaker 3: And so the drama seems to have unfolded between Sebastian Victor, 577 00:29:15,480 --> 00:29:19,200 Speaker 3: the two co founders, people sort of taking side. How 578 00:29:19,200 --> 00:29:22,840 Speaker 3: often or not does sort of drama accursor. It feels 579 00:29:22,840 --> 00:29:25,719 Speaker 3: like it's relatively rare, but of course the money's involved, 580 00:29:25,760 --> 00:29:27,960 Speaker 3: things do get dramatic, right. 581 00:29:28,200 --> 00:29:33,920 Speaker 2: So Klarna is doing very well. It had some hiccups, 582 00:29:33,960 --> 00:29:37,160 Speaker 2: as many companies did over the past couple of years, 583 00:29:37,200 --> 00:29:42,320 Speaker 2: but basically it's a very richly valued company that should 584 00:29:42,600 --> 00:29:46,600 Speaker 2: be headed for an IPO at some point. And when 585 00:29:46,680 --> 00:29:51,280 Speaker 2: this type of drama unfolds, it's usually behind the scenes. 586 00:29:51,480 --> 00:29:56,280 Speaker 2: Whatever disagreements happen at the board level rarely make it 587 00:29:56,760 --> 00:29:57,840 Speaker 2: beyond those doors. 588 00:29:58,480 --> 00:30:00,120 Speaker 4: And then when they do. 589 00:30:00,320 --> 00:30:05,880 Speaker 2: To have two partners affiliated so closely with one firm 590 00:30:06,200 --> 00:30:09,880 Speaker 2: have a dispute like this is almost unheard of. So 591 00:30:10,400 --> 00:30:14,600 Speaker 2: people are surprised it happened, but more than anything, they're 592 00:30:14,720 --> 00:30:19,000 Speaker 2: surprised at how word of it became so public and 593 00:30:19,200 --> 00:30:22,920 Speaker 2: the CEO ended up having to fly to Silicon Valley 594 00:30:23,400 --> 00:30:27,640 Speaker 2: to make amends and smooth things over with Sequoia. Sequoias 595 00:30:27,720 --> 00:30:31,320 Speaker 2: has had to appoint a new board member. It's all 596 00:30:31,360 --> 00:30:33,080 Speaker 2: gotten unusually messy. 597 00:30:33,200 --> 00:30:36,120 Speaker 3: And all of the time, where Sequoia itself is transitioning 598 00:30:36,200 --> 00:30:39,240 Speaker 3: and having new leadership and splitting from its China division, 599 00:30:39,280 --> 00:30:41,600 Speaker 3: there was a whole host of stories going on on 600 00:30:41,720 --> 00:30:43,920 Speaker 3: your side of the world right now, Sarah McBride, we're 601 00:30:43,920 --> 00:30:45,920 Speaker 3: so pleasy you're able to bring it to us, the 602 00:30:45,960 --> 00:30:49,000 Speaker 3: inside trank you. Now, let's stick with VC maybe a 603 00:30:49,160 --> 00:30:51,680 Speaker 3: slightly calmer part of it at the moment, and we're 604 00:30:51,680 --> 00:30:54,560 Speaker 3: pleased to welcome Jet Fine onto the show for VC Spotlight. 605 00:30:54,600 --> 00:30:56,680 Speaker 3: Let's actually talk about the investments being made at the moment. 606 00:30:56,760 --> 00:30:58,160 Speaker 3: Let's talk about the bread and butter of what you 607 00:30:58,280 --> 00:31:00,360 Speaker 3: up to a headline benches. It is wonderful to have 608 00:31:00,440 --> 00:31:02,400 Speaker 3: you with us, Jet, and one I've had time and 609 00:31:02,440 --> 00:31:05,160 Speaker 3: time again, an interestingly quite a lot this week at 610 00:31:05,200 --> 00:31:08,960 Speaker 3: a conference was that consumer tech is dead, don't go 611 00:31:09,000 --> 00:31:11,560 Speaker 3: anywhere near it. That was all twenty ten and onwards. 612 00:31:11,640 --> 00:31:13,400 Speaker 3: And for now we've all got to be in healthcare 613 00:31:13,480 --> 00:31:17,200 Speaker 3: and climate tech and AI of course, but you don't 614 00:31:17,280 --> 00:31:17,840 Speaker 3: think that's the. 615 00:31:17,800 --> 00:31:20,360 Speaker 10: Case, Well, thanks Caroline. 616 00:31:20,400 --> 00:31:22,440 Speaker 13: Yeah, it's a pleasure to be with you this morning. 617 00:31:22,480 --> 00:31:25,120 Speaker 13: Thank you for having me. Yeah, as you mentioned, I'm 618 00:31:25,120 --> 00:31:28,240 Speaker 13: a partner at Headline, and we are a tech enabled 619 00:31:28,280 --> 00:31:33,560 Speaker 13: global mentor capital firm where I focus on consumer oriented investments, 620 00:31:33,600 --> 00:31:36,560 Speaker 13: among other things, and we've had the good fortune over 621 00:31:36,600 --> 00:31:41,440 Speaker 13: the years to lead consumer investments like Go Puff Bumble, Axios, 622 00:31:41,480 --> 00:31:46,160 Speaker 13: The Real Real, Farfetch among others. And listen, you're exactly right, 623 00:31:46,240 --> 00:31:48,200 Speaker 13: you know. To answer your question, I think you have 624 00:31:48,280 --> 00:31:52,360 Speaker 13: to look behind the front page here, a little past 625 00:31:52,480 --> 00:31:55,160 Speaker 13: the rumor mill. You know, if you look at Fang 626 00:31:55,360 --> 00:31:58,240 Speaker 13: for example, Fang is all consumer. In fact, the most 627 00:31:58,320 --> 00:31:59,680 Speaker 13: valuable companies in. 628 00:31:59,600 --> 00:32:02,000 Speaker 4: The world are our. 629 00:32:01,920 --> 00:32:07,280 Speaker 13: Consumer companies, Apple, Amazon, Tesla, Snap, Facebook of course, right, 630 00:32:07,320 --> 00:32:11,200 Speaker 13: and you know, going forward, we think at Headline that 631 00:32:11,200 --> 00:32:14,840 Speaker 13: that will continue to be the case, particularly given this 632 00:32:15,040 --> 00:32:18,160 Speaker 13: generational technology shift with with AI. 633 00:32:18,880 --> 00:32:22,520 Speaker 3: Let's get more specific then, because you mentioned Tesla and Snap, 634 00:32:22,600 --> 00:32:26,240 Speaker 3: but both have faced significant headwinds their own share prices 635 00:32:26,280 --> 00:32:28,840 Speaker 3: and headwinds to ultimately consumer demand for some of their 636 00:32:28,840 --> 00:32:32,480 Speaker 3: products at the moment and stimying growth. When you're looking 637 00:32:32,480 --> 00:32:34,160 Speaker 3: at some of the exits that you've had, I mean, 638 00:32:34,440 --> 00:32:37,880 Speaker 3: really notable companies but Farfetch has had a terrible time 639 00:32:37,880 --> 00:32:40,680 Speaker 3: of it and ultimately sort of big bought out of bankruptcy. 640 00:32:41,320 --> 00:32:43,440 Speaker 4: E commerce may be a hard place to be. 641 00:32:43,560 --> 00:32:45,400 Speaker 3: Where is the place to be when you want to 642 00:32:45,400 --> 00:32:47,320 Speaker 3: have exposure to a consumer that is still out there 643 00:32:47,320 --> 00:32:48,640 Speaker 3: and is still buying some stuff. 644 00:32:49,760 --> 00:32:53,080 Speaker 13: Absolutely, Yeah, it's a great point. Listen, consumer companies that 645 00:32:53,120 --> 00:32:57,520 Speaker 13: have historically relied on paid customer acquisition are facing real headwinds, 646 00:32:57,520 --> 00:33:00,280 Speaker 13: and so you know, what we're quite excited about at 647 00:33:00,280 --> 00:33:04,760 Speaker 13: headline is the opportunity to partner with companies that have 648 00:33:04,840 --> 00:33:08,440 Speaker 13: real distribution advantages. And what I mean by that are 649 00:33:08,840 --> 00:33:15,840 Speaker 13: companies that leverage the benefits of community content, celebrity or creators. 650 00:33:16,040 --> 00:33:19,040 Speaker 13: And we're seeing more and more of those companies come up, 651 00:33:19,080 --> 00:33:24,400 Speaker 13: of course in the world of of TikTok, Timu Shean 652 00:33:25,000 --> 00:33:30,000 Speaker 13: and other companies that leverage those distribution advantages beyond beyond 653 00:33:30,160 --> 00:33:31,840 Speaker 13: solely paid acquisitions. 654 00:33:32,680 --> 00:33:35,360 Speaker 3: So am I anticipating more celebrity beauty brands? 655 00:33:35,440 --> 00:33:35,600 Speaker 9: Is that? 656 00:33:35,680 --> 00:33:37,000 Speaker 3: Is that the way that we're going to be sort 657 00:33:37,000 --> 00:33:38,920 Speaker 3: of seeing this come to life? 658 00:33:39,600 --> 00:33:42,920 Speaker 13: Well, certainly, certainly there will be more. Absolutely, I think 659 00:33:43,040 --> 00:33:47,080 Speaker 13: that's one way that companies can find real distribution is 660 00:33:47,320 --> 00:33:50,560 Speaker 13: utilizing celebrity creators and content and community. 661 00:33:52,160 --> 00:33:55,360 Speaker 3: Well, Jet, we'll see what companies you're backing, watch ones 662 00:33:55,440 --> 00:33:59,000 Speaker 3: manage to find that consumer fit and what celebrities are 663 00:33:59,080 --> 00:34:01,840 Speaker 3: currently bringing things to market headline ventures general partner, Jet 664 00:34:01,880 --> 00:34:03,320 Speaker 3: Fine really great to catch up with you. 665 00:34:03,520 --> 00:34:04,720 Speaker 4: Truly global perspective. 666 00:34:04,760 --> 00:34:14,120 Speaker 3: This company is everywhere in Latin America, Asia, around Europe. 667 00:34:15,080 --> 00:34:18,680 Speaker 3: Let's checking on other earnings today. Carvana shares absolutely rocketing. 668 00:34:19,040 --> 00:34:22,040 Speaker 3: Company reported profits are some past estimates. Managing to avoid 669 00:34:22,040 --> 00:34:26,080 Speaker 3: headwinds from well somewhat circumvent and reduce some of those 670 00:34:26,080 --> 00:34:28,960 Speaker 3: headwinds from high interest rates from inflation. Joining us now 671 00:34:28,960 --> 00:34:32,440 Speaker 3: for more on that earnings report, CEO founder Annie Garcia 672 00:34:32,560 --> 00:34:36,240 Speaker 3: and thirty one percent higher. And you have had to, 673 00:34:36,320 --> 00:34:39,160 Speaker 3: like many in the private market and the public market, 674 00:34:39,239 --> 00:34:42,080 Speaker 3: suddenly shift gears from growth at all costs to profits 675 00:34:42,080 --> 00:34:44,080 Speaker 3: at all costs. What have you been doing to be 676 00:34:44,120 --> 00:34:46,480 Speaker 3: able to prove yourself in this recent report? 677 00:34:48,160 --> 00:34:50,040 Speaker 14: So I think you know it's one of those things 678 00:34:50,040 --> 00:34:52,160 Speaker 14: where you start see results come through pretty quickly, but 679 00:34:52,200 --> 00:34:53,480 Speaker 14: there's a lot of work that goes in for a 680 00:34:53,480 --> 00:34:56,120 Speaker 14: long time before. And so I think you know twenty 681 00:34:56,120 --> 00:34:58,360 Speaker 14: twenty two like it was for so many companies. Was 682 00:34:58,680 --> 00:35:01,680 Speaker 14: a time where the winds shifted pretty quickly for us 683 00:35:01,719 --> 00:35:04,560 Speaker 14: and for everyone else. And I think the team came together, 684 00:35:04,600 --> 00:35:07,120 Speaker 14: we came up with the plan that we thought really 685 00:35:07,200 --> 00:35:09,719 Speaker 14: kind of made sense in that moment with the new 686 00:35:09,760 --> 00:35:12,400 Speaker 14: pressures that were out there in the world. And I 687 00:35:12,400 --> 00:35:15,080 Speaker 14: think the team has just executed incredibly well over the 688 00:35:15,160 --> 00:35:17,719 Speaker 14: last two years, and we're starting to see that now. 689 00:35:17,920 --> 00:35:20,359 Speaker 10: I think the results that we just reported and the results. 690 00:35:20,000 --> 00:35:21,960 Speaker 14: That we see coming in the future are something that 691 00:35:22,000 --> 00:35:25,319 Speaker 14: we're extremely excited about. And it is the result of 692 00:35:25,360 --> 00:35:27,920 Speaker 14: the team coming together and doing incredible work. And so 693 00:35:28,120 --> 00:35:29,839 Speaker 14: thank you to the team. Just cannot thank you enough 694 00:35:29,880 --> 00:35:30,760 Speaker 14: for everything you've done. 695 00:35:30,880 --> 00:35:33,440 Speaker 3: And some of the analysts like William Blair, analysts Sharon 696 00:35:33,480 --> 00:35:36,240 Speaker 3: really talking about the steep increases and profits. 697 00:35:35,840 --> 00:35:37,720 Speaker 4: And the return to unit growth. 698 00:35:37,920 --> 00:35:40,399 Speaker 3: But some more cynical people out there would say, look, 699 00:35:40,400 --> 00:35:42,399 Speaker 3: this thirty percent optic in the stare price is because 700 00:35:42,440 --> 00:35:44,120 Speaker 3: it's just squeezing out some of the shorts and you 701 00:35:44,160 --> 00:35:46,360 Speaker 3: wear a heavily shortened name. What do you say to 702 00:35:46,360 --> 00:35:48,760 Speaker 3: those people who are still standing by betting against your company? 703 00:35:49,800 --> 00:35:51,880 Speaker 14: Oh, well, I think there's room in the world for shorts, 704 00:35:51,880 --> 00:35:54,400 Speaker 14: and I think, you know, it's okay. Skepticism is helpful, 705 00:35:54,440 --> 00:35:57,360 Speaker 14: it creates pressure. I think there was a one of 706 00:35:57,360 --> 00:36:00,759 Speaker 14: the ancient I believe Greek philosophers said, hater's going to 707 00:36:00,800 --> 00:36:04,240 Speaker 14: hate players going to play, But me, I'm just gonna shake, shake, shake. 708 00:36:04,400 --> 00:36:05,799 Speaker 10: Shake it off, shake it off. 709 00:36:06,120 --> 00:36:08,880 Speaker 14: I believe that may have been Aristotle, that may have 710 00:36:08,920 --> 00:36:10,120 Speaker 14: been it could have been Plato too. 711 00:36:10,120 --> 00:36:10,759 Speaker 10: I could be wrong. 712 00:36:11,280 --> 00:36:12,920 Speaker 4: Well, she has a way with words. I will give 713 00:36:12,920 --> 00:36:13,160 Speaker 4: her that. 714 00:36:13,880 --> 00:36:17,680 Speaker 3: I'm interested there and eerie in more seriously, like the 715 00:36:17,680 --> 00:36:20,920 Speaker 3: debt market, that's been a tough space, and we are, 716 00:36:21,000 --> 00:36:23,360 Speaker 3: of course as Bluemberg focused on equity markets. 717 00:36:23,360 --> 00:36:25,200 Speaker 4: We're all focused on bonds in particular. 718 00:36:25,520 --> 00:36:28,799 Speaker 3: How are you thinking about well not having to restructure 719 00:36:28,960 --> 00:36:31,200 Speaker 3: once again, how are you thinking about paying down debt? 720 00:36:33,160 --> 00:36:34,800 Speaker 14: I think, you know, listen, the most important thing that 721 00:36:34,840 --> 00:36:37,120 Speaker 14: we do as companies we deliver great experiences to customers, 722 00:36:37,160 --> 00:36:38,880 Speaker 14: and we grow into this huge opportunity that we have. 723 00:36:39,960 --> 00:36:42,080 Speaker 14: I think it was really hard from the perspective of 724 00:36:42,080 --> 00:36:44,520 Speaker 14: a year ago to see the incredible gains that the 725 00:36:44,520 --> 00:36:46,960 Speaker 14: team has made over the last year. And I think 726 00:36:46,960 --> 00:36:49,520 Speaker 14: that those games were possible because the offering that we 727 00:36:49,520 --> 00:36:52,040 Speaker 14: give to customers is unique. The business that we've built 728 00:36:52,120 --> 00:36:54,920 Speaker 14: is very hard to replicate, and the team that we've 729 00:36:55,000 --> 00:36:57,480 Speaker 14: assembled is incredible. And so I think our job now 730 00:36:57,560 --> 00:36:58,960 Speaker 14: is to take advantage of those things and just keep 731 00:36:58,960 --> 00:36:59,399 Speaker 14: moving forward. 732 00:36:59,400 --> 00:37:00,760 Speaker 10: And I think the rest take care of itself. 733 00:37:00,880 --> 00:37:02,920 Speaker 3: You talk about that team, and I know as a 734 00:37:02,920 --> 00:37:05,120 Speaker 3: business leader, it's incredibly hard to have to think about 735 00:37:05,160 --> 00:37:07,560 Speaker 3: how you scale back or reduce headcount. Is that something 736 00:37:07,560 --> 00:37:09,600 Speaker 3: you're having to think about into the future. 737 00:37:09,719 --> 00:37:10,719 Speaker 4: Is the team where you want it? 738 00:37:11,880 --> 00:37:12,920 Speaker 10: The team's in a great spot. 739 00:37:13,239 --> 00:37:15,600 Speaker 14: I think you know, we, like I said, twenty twenty 740 00:37:15,640 --> 00:37:17,319 Speaker 14: two is a tough time for us, like it was 741 00:37:17,360 --> 00:37:19,440 Speaker 14: for so many companies. We had to make adjustments. The 742 00:37:19,440 --> 00:37:21,680 Speaker 14: team's in a great spot. I think you know. One 743 00:37:21,719 --> 00:37:24,239 Speaker 14: of the things that we did a really I would 744 00:37:24,320 --> 00:37:26,640 Speaker 14: like to say, did a really good job with going 745 00:37:26,680 --> 00:37:29,080 Speaker 14: through that period is we were able to make tough 746 00:37:29,080 --> 00:37:31,759 Speaker 14: decisions and to move forward and to do the hard 747 00:37:31,760 --> 00:37:33,360 Speaker 14: work that had to be done to put ourselves in 748 00:37:33,400 --> 00:37:35,680 Speaker 14: a position to really succeed. And I think this is 749 00:37:35,680 --> 00:37:38,040 Speaker 14: now a team that is battle tested and battle hardened, 750 00:37:38,760 --> 00:37:40,759 Speaker 14: and it's a team that, as I said, I every 751 00:37:40,760 --> 00:37:42,080 Speaker 14: time you bring it up I'm going to just say 752 00:37:42,080 --> 00:37:43,960 Speaker 14: thank you because I could not be more grateful. 753 00:37:45,040 --> 00:37:48,200 Speaker 3: And let's look at ultimately where the consumer is at 754 00:37:48,239 --> 00:37:51,640 Speaker 3: from your perspective, because you have been able to take 755 00:37:52,040 --> 00:37:54,440 Speaker 3: more of a cart for each car that you're shifting, 756 00:37:54,560 --> 00:37:57,880 Speaker 3: but consumers have bought a lot of second hand vehicles 757 00:37:57,960 --> 00:38:00,960 Speaker 3: that we are seeing a more competitive space. How do 758 00:38:01,080 --> 00:38:03,640 Speaker 3: you outperform bill competitors? 759 00:38:05,400 --> 00:38:07,600 Speaker 14: So I think you know, this is a big, mature 760 00:38:07,600 --> 00:38:10,959 Speaker 14: industry right Every year, roughly speaking, there's about forty million 761 00:38:11,040 --> 00:38:13,359 Speaker 14: used cars that are transacted in the US. And that's 762 00:38:13,360 --> 00:38:15,200 Speaker 14: because there's two hundred and seventy million cars out there 763 00:38:15,280 --> 00:38:17,560 Speaker 14: driving around. And as a consumer, all of us, you know, 764 00:38:17,560 --> 00:38:19,080 Speaker 14: we get tired of the car we're driving and we're 765 00:38:19,080 --> 00:38:20,760 Speaker 14: insted in driving a new one. 766 00:38:21,080 --> 00:38:23,360 Speaker 10: And so that pushs us to go do a swap. 767 00:38:23,520 --> 00:38:25,640 Speaker 14: And I think what the entire automotive industry is all 768 00:38:25,680 --> 00:38:28,320 Speaker 14: about is it's about finding those moments where one customer 769 00:38:28,360 --> 00:38:30,440 Speaker 14: wants to switch into the next car and making it 770 00:38:30,480 --> 00:38:33,680 Speaker 14: as simple as possible and is cost efficient as possible 771 00:38:33,719 --> 00:38:35,880 Speaker 14: to get that car from one customer to the next. 772 00:38:36,520 --> 00:38:38,320 Speaker 14: And I think that's what our whole business is designed 773 00:38:38,320 --> 00:38:40,359 Speaker 14: to do. We've built an entirely new supply chain. We've 774 00:38:40,360 --> 00:38:43,480 Speaker 14: built an entirely new transaction capability. It's supported by all 775 00:38:43,480 --> 00:38:45,360 Speaker 14: this technology that we've built to weave it together, so 776 00:38:45,400 --> 00:38:48,120 Speaker 14: it's simple for a customer. And I think as long 777 00:38:48,160 --> 00:38:51,319 Speaker 14: as we keep delivering that experience that gives them the 778 00:38:51,360 --> 00:38:53,960 Speaker 14: best price, the best selection, the best experience, I think 779 00:38:54,000 --> 00:38:56,120 Speaker 14: we're in a really good spot. We grew, you know, 780 00:38:56,239 --> 00:38:58,840 Speaker 14: from a seat of an idea in twenty thirteen to 781 00:38:58,840 --> 00:39:01,640 Speaker 14: where we are today by doing that in a market 782 00:39:01,640 --> 00:39:02,840 Speaker 14: that was relatively flat. 783 00:39:03,560 --> 00:39:04,399 Speaker 10: I think today there. 784 00:39:04,280 --> 00:39:06,480 Speaker 14: Are actually, you know, there have been some tailwinds that 785 00:39:06,520 --> 00:39:10,080 Speaker 14: have been nice, and those tailwinds have been lowering car 786 00:39:10,120 --> 00:39:12,799 Speaker 14: prices which were very high for several year period. That 787 00:39:12,880 --> 00:39:14,239 Speaker 14: was tough for a lot of consumers and made it 788 00:39:14,239 --> 00:39:15,719 Speaker 14: hard for them to switch to that next car they 789 00:39:15,719 --> 00:39:19,000 Speaker 14: may have been excited about. So I think, you know, overall, 790 00:39:19,080 --> 00:39:21,399 Speaker 14: our goal is just to keep executing, keep delivering great 791 00:39:21,400 --> 00:39:24,680 Speaker 14: experiences and take market share. And we think secondarily that 792 00:39:25,360 --> 00:39:27,920 Speaker 14: we think secondarily the market will do its thing. 793 00:39:28,480 --> 00:39:29,680 Speaker 4: Market's going to do its thing. 794 00:39:30,120 --> 00:39:32,960 Speaker 3: Caw Vana CEO, you do your thing on TV with us, 795 00:39:32,960 --> 00:39:36,040 Speaker 3: we can so much. Founder Ernie Garcia. We appreciate you 796 00:39:36,040 --> 00:39:39,040 Speaker 3: being with us. We've got some breaking news Jamie Diamond. 797 00:39:39,120 --> 00:39:40,719 Speaker 3: He's been letting go of some shares, one hundred and 798 00:39:40,719 --> 00:39:44,120 Speaker 3: fifty million dollars worth of JP Morgan shares and what. 799 00:39:44,280 --> 00:39:45,560 Speaker 4: Is a first sale. 800 00:39:45,600 --> 00:39:48,240 Speaker 3: His family is selling that amount of the bank stock 801 00:39:48,960 --> 00:39:51,200 Speaker 3: from New York, from San Francisco. That does it for 802 00:39:51,200 --> 00:39:54,000 Speaker 3: this edition of Blue Meg Technology Don't Forget About Podcast