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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is live

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Speaker 1: from coast to coast with Caroline Hyde in New York

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Speaker 1: and ever though in Sent Francisco.

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Speaker 2: This is Bloomberg Tech coming up.

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Speaker 3: Disney shares sinking after giving a tepid growth outlook that

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Speaker 3: says the market of waits news on who will be

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Speaker 3: it's new leader. Plus Oracle raising more debt as a

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Speaker 3: software giant looks to raise forty five to fifty billion

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Speaker 3: dollars in bonds, an equity for additional cloud in the

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Speaker 3: structure capacity and sources, say Elon musk Is in advanced

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Speaker 3: talks to combined SpaceX with XAI. Will have all the details,

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Speaker 3: but first we check in on these markets. Then in

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Speaker 3: certain areas breathe some size of relief after selloff on

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Speaker 3: the NASZAC on the s and P five hundred, we're

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Speaker 3: actually seeing a bit more of the buying of the

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Speaker 3: dip when it comes to stocks, not so much when

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Speaker 3: you're looking at commodities rob percent when you're looking at

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Speaker 3: the NASAK. Now Bitcoin bounces, but boy did it feel

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Speaker 3: the pain. Over the course of the weekend. We're only

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Speaker 3: training at seventy eight thousand, so still the pressure on

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Speaker 3: on so called digital gold as we actually see that

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Speaker 3: continued strain on gold and silver that really catalyzed on

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Speaker 3: Friday and the decision of who will be the next

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Speaker 3: FED chair. Move on to the individual stocks in video

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Speaker 3: is one of the biggest points drags to the downside

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Speaker 3: to day off by one point four percent. We're going

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Speaker 3: to dig into what really its relationship with Opening Eye

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Speaker 3: and how much it's committing to funding. It is going

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Speaker 3: to look like we're looking at Oracle now up two

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Speaker 3: percentage points. It's selling a whole wealth of debt and equity.

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Speaker 3: But does this steady the nerves that it would in

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Speaker 3: some way temp junk status on its debt. We're getting

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Speaker 3: into that a little bit later. Move on there, because

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Speaker 3: then the here and now we're looking at earnings and it

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Speaker 3: was tepid growth more broadly that we saw for Disney,

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Speaker 3: and that particular seems to be being pointed forward to

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Speaker 3: this fiscal quarter that we look at what is the

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Speaker 3: worry about people not traveling towards many of the parks

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Speaker 3: in the year to come. We're currently off by four

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Speaker 3: percent to say, on the interry day basis, but interesting

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Speaker 3: news over the course of a weekend as well. About management.

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Speaker 3: Felix Chillette joins us. Now, just going to the fundamentals

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Speaker 3: of the business. The quarter they just reported was strong,

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Speaker 3: particularly in streaming, but it seems to be where we're

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Speaker 3: going in parks, which is a slight nervousness.

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Speaker 4: Yeah, I mean, they just reported record sales and parks

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Speaker 4: for the previous quarter. They hit ten billion dollars of

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Speaker 4: sales in the quarter for the first time. But they

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Speaker 4: offer this outlook today that said, you know, in the

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Speaker 4: current quarter, there are some concerns. There's all this you know,

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Speaker 4: volatility in terms of the international market. Are they going

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Speaker 4: to have as many international visitors to the parks. They're

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Speaker 4: going to shift some of their marketing to try and

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Speaker 4: attract more domestic visitors to the domestic parks. There's also

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Speaker 4: increased costs. They're launching a new cruise ship. They have

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Speaker 4: a new Frozen exhibit opening in the parks in France.

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Speaker 4: So yeah, the park's outlook for this quarter is not

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Speaker 4: as good coming off a very strong quarter.

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Speaker 3: Interesting time for parks though, and it's leadership because we

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Speaker 3: understand there's a key vote going on at the boarderlane

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Speaker 3: this week.

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Speaker 4: Yeah, so the ward is meeting they're expected to vote

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Speaker 4: on Bob Isereiger's successor. We've been watching this for three

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Speaker 4: years now. They are leaning towards Josh Tomorrow, who's the

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Speaker 4: head of Parks, and we're expecting to see that vote

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Speaker 4: this week. Disney previously said they're going to announce a

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Speaker 4: successor for Bob Biger sometime before the end of March.

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Speaker 4: So things are moving forward and it makes sense that

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Speaker 4: Josh Tomorrow would be in the lead at this point.

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Speaker 4: The Parks and Cruise division is providing the vast amounts

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Speaker 4: of profit at this company, and it sort of reflects

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Speaker 4: where things are at. The experience is really working well

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Speaker 4: for consumers right now, and we've talked about the home

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Speaker 4: entertainment is still somewhat tumultuous as we make this transition

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Speaker 4: from cable to streaming.

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Speaker 2: Felix Junette with the best run up. We so appreciate it.

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Speaker 2: Thank you. Meanwhile, Disney CEO Bob Byga.

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Speaker 3: Didn't talk about their IP, saying there's no rush to

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Speaker 3: acquire any more of it.

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Speaker 2: Here he is in Today's Enny's Cool.

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Speaker 5: I think we have a great hand. I don't really

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Speaker 5: feel that we have a need to buy more iping

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Speaker 5: to continue to create our.

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Speaker 6: Own and we've got an unbelievable bedrock of stories already

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Speaker 6: told to grow.

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Speaker 3: From sticking to Disney, streaming landscape and more with Daniel

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Speaker 3: Payne his slate Stone Wealth CIO. Just for a moment,

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Speaker 3: we're just talking about how important the parks are. But

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Speaker 3: from the streaming side, it had a really good innings

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Speaker 3: in terms of profitability. Finally, in terms of the previous

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Speaker 3: court are just reported on that push us forward.

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Speaker 6: Yeah, really good from the entertainment standpoint, and that's where

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Speaker 6: they see a lot of their operating leverage leverage.

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Speaker 5: In the company.

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Speaker 6: But we do believe moving forward there are a few

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Speaker 6: catalysts out there on the experiences, which is their parks

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Speaker 6: and cruises over the course of the year that really

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Speaker 6: could be beneficial to shareholders.

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Speaker 5: You know.

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Speaker 6: The near term concerns which they mentioned for the first

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Speaker 6: quarter because of international travel, you know, might be pressuring

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Speaker 6: the stock today along with the management changing. So there's

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Speaker 6: a lot going there, you know, under the hood. But

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Speaker 6: bottom line is we got massive stimulus and down to

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Speaker 6: pipe in this country with the tax cuts, with the

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Speaker 6: one big beautiful bill, We're going to have about one

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Speaker 6: hundred and fifty billion dollars of tax refunds for consumers,

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Speaker 6: and the US consumer they've proven over and over again

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Speaker 6: that if they're halfway confident with their job and they

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Speaker 6: have excess money in their pocket, they're going to spend it.

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Speaker 6: So that could be a catalyst moving forward once we

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Speaker 6: get into summer. And another thing that nobody's really talking

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Speaker 6: about is that this summer we have a few events

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Speaker 6: that are kind of unique for this country. We have

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Speaker 6: the World Cup here this summer, and we have the

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Speaker 6: two hundred and fiftieth anniversary of our country, which.

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Speaker 5: Is going to be a lot of steamless in and

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Speaker 5: of itself.

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Speaker 6: I've seen some projections that the World Cup is going

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Speaker 6: to generate about six point five people coming for the event,

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Speaker 6: it's going to generate roughly seventeen billion in GDP for

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Speaker 6: this country. And you know, with those kind of visitors,

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Speaker 6: who's not to say they might stay a little bit

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Speaker 6: longer and bolt on a trip to one of the

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Speaker 6: Disney parks moving forward, So I think longer term, there

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Speaker 6: could be some catalyst to get this stock out of

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Speaker 6: the fund that has been in over the past four

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Speaker 6: years under the current management.

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Speaker 3: We'll talk about management and current management, how do you

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Speaker 3: feel about maybe the person who's helped drive the park's

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Speaker 3: business becoming the CEO of the whole business again.

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Speaker 6: Well, that could be the reason why we've seen some

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Speaker 6: weakness today because it could be like, you know, here

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Speaker 6: we go again, because if you remember back in twenty twenty,

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Speaker 6: we had the same thing happen when I Eiger, you know,

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Speaker 6: placed his hand picked successor, Bob Chappick, in control, and

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Speaker 6: you know, unfortunately for Chapick, he was put in control

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Speaker 6: of the entire operations in February of twenty twenty, so

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Speaker 6: we know exactly what happened a month or two later.

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Speaker 6: It's kind of hard to run a company when the

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Speaker 6: whole economy shuts down and discretionary spending comes to a halt.

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Speaker 6: So you know, that might be kind of unfair to

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Speaker 6: judge Chappick on that, but there could be some nervousness

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Speaker 6: with investors by doing the same thing once again, putting

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Speaker 6: the head of the experiences, which again is parts and

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Speaker 6: cruise line and gaming ahead at the charge of the company.

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Speaker 5: So there might be some hesitancy there.

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Speaker 6: But I will say Disney over the past four years

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Speaker 6: has nearly doubled their EPs, but yet the stock has

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Speaker 6: been essentially flats. We've had massive valuation contraction. And if

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Speaker 6: they get the right person in charge that can pull

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Speaker 6: the various levers of this company, you know, we can

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Speaker 6: have a premium brand once again trading at a premium valuation.

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Speaker 6: So right now the stock trades at roughly seventeen times

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Speaker 6: to twenty twenty six earn exestimus about six sixty. You know,

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Speaker 6: if a market multiple is placed upon this premium brand,

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Speaker 6: you know the stock could get into the mid one

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Speaker 6: fifties with pretty much ease.

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Speaker 5: And so that is significant.

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Speaker 6: Upside potential if the right person can make the right

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Speaker 6: decisions moving forward.

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Speaker 3: If we hear it's Josh, and we know the board

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Speaker 3: is voting this week and then they've promised us that

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Speaker 3: we would hear by the end of March. If that's

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Speaker 3: the case, then where do you think they can drive

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Speaker 3: the realization that their IP is worth so much more

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Speaker 3: that the spending isn't having to just go up into

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Speaker 3: the right when they're trying to market the latest Avatar movie,

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Speaker 3: or when they're having to really pay top dollar for

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Speaker 3: sporting events. I mean, you just went at length and

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Speaker 3: what the soccer means for the US more broadly, but

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Speaker 3: when you're trying to stream it or show it, it

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Speaker 3: gets very expensive.

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Speaker 5: And that's the problem with that side of the business.

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Speaker 6: There's significant operating leverage with the variable cost and you know,

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Speaker 6: you spend all that variable cost money up front and

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Speaker 6: it's almost.

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Speaker 5: Like you build it and you hope they show up.

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Speaker 6: And so you know, if you get the formula right,

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Speaker 6: you spend the money on the content and it's success,

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Speaker 6: then that significant leverage for the earnings growth of the company.

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Speaker 6: And that's kind of the factor that investors are weighing

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Speaker 6: right now with especially with this change in leadership. Could

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Speaker 6: it just adds uncertainty to the stock but you know,

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Speaker 6: once again, you know, and uncertainty lead to opportunity, and

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Speaker 6: their opportunities how you make money in the stock over

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Speaker 6: market cycle.

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Speaker 2: Daniel Payne a Slate Stone Wealth.

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Speaker 3: I appreciate it coming on today and coming up the US.

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Speaker 2: It aims to slash.

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Speaker 3: Its reliance on Chinese rare earths and other metals. We'll

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Speaker 3: tell you all about the plans for the first of

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Speaker 3: its kind stockpile for the US private sector.

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Speaker 2: That's next as a blomleg tech.

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Speaker 3: President Trump, Well, it's set to launch a twelve billion

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Speaker 3: dollar stockpile of strategic critical minerals. The move set to

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Speaker 3: count US lance on Chinese rare earth but send prices

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Speaker 3: for related companies higher. But it's all according to sources

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Speaker 3: thus far. Let's bring in Bloomberg's tech editor in DC,

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Speaker 3: Mike Shephard, tell us about this first of its kind

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Speaker 3: store for US private sector. What do we know is

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Speaker 3: set to potentially be announced here, Mike.

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Speaker 7: Well, what we're looking for is the US Export Import

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Speaker 7: Bank to take a vote later today on approving this package.

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Speaker 7: The private sector will kick in about one point six

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Speaker 7: to seven billion dollars as part of this seed money,

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Speaker 7: and the US Export Import Bank will kick in another

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Speaker 7: ten billion dollars, and this would be the biggest such

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Speaker 7: deal in the Bank's history by far. And it really

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Speaker 7: is a sign of just how much the administration is

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Speaker 7: pushing in this area of rare roots and critical minerals

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Speaker 7: and trying to wean the US from its dependence on

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Speaker 7: China as a key source for these inputs. They're so

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Speaker 7: essential to the private sector, to autos, to iPhones, to

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Speaker 7: gas turbines even and without access to them, we risk

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Speaker 7: seeing a manufacturing supply chain disruption akin to what we

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Speaker 7: risk experiencing earlier last year when the Chinese government started

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Speaker 7: to impose some of those export controls on rare earth.

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Speaker 7: So the US is trying to diversify around it and

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Speaker 7: ensure both pricing stability and supply stability.

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Speaker 8: Here.

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Speaker 3: Caro administration officials have been detailing what could be announced.

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Speaker 3: But what's interesting, Mike is through which countries are we

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Speaker 3: going to be sourcing from and what sort of backstops

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Speaker 3: do these The export import back need to know that

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Speaker 3: they can sell this on correctly and not be landed

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Speaker 3: with an awful lot of minerals.

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Speaker 7: Well, the idea is to ensure that US manufacturers have

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Speaker 7: this access, and it would create this stockpile akin to

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Speaker 7: the Strategic Petroleum Reserve here that manufacturers here in the

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Speaker 7: US could access is needed, they would have to pay

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Speaker 7: into it to be able to eventually make purchases and

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Speaker 7: then promise to replenish it down the road. But this

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Speaker 7: is just one of several steps in the area of

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Speaker 7: rare earth that the US government is taking right now.

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Speaker 7: Later this week there will be meetings with dozens of

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Speaker 7: foreign ministers here in Washington to agree on trying to

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Speaker 7: find some way to create a mechanism to stabilize prices

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Speaker 7: and supply around the world, not just here in the US,

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Speaker 7: but with allies, so that collectively they can reduce some

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Speaker 7: of their dependence on China and increase extraction, mining and

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Speaker 7: refining in a number of other countries. While we call

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Speaker 7: them rare earths, they are actually fairly common. It is

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Speaker 7: just that they are not extracted or exploited in as

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Speaker 7: many places as they are, and to the extent that

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Speaker 7: China has come to dominate the market and cara. The

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Speaker 7: clock is ticking. Remember that the trade truths that the

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Speaker 7: President signed with Shijinping late last year, it's only good

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Speaker 7: for one year, so they have to start making these

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Speaker 7: moves to ensure that supply won't be as disrupted as

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Speaker 7: a risk being facing earlier last year before the trade agreement.

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Speaker 3: I'll see how project vaulted it is known continues being

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Speaker 3: by to Smack Shepherd. Thanks for detailing all of this.

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Speaker 3: Let's get the broader economic picture now to well what's

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Speaker 3: moving tech stocks in particular Natal Gallagher's with US principal

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Speaker 3: economists and director at Board.

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Speaker 2: Just going back to that rarer suggestion, is.

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Speaker 3: That positive do we need is supply chain, real headache

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Speaker 3: for the this is out there right now.

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Speaker 9: Yeah.

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Speaker 10: Absolutely, you know what we're seeing as a fundamental shift

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Speaker 10: in how the US has really been addressing supply chain

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Speaker 10: resilience over the past few years and absolutely top of

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Speaker 10: mind following the export control measures by China back in

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Speaker 10: twenty twenty five. You know what, in essence we're doing

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Speaker 10: is we're creating a strategic preserve of rare earth menerals

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Speaker 10: for the digital economy, which means that we're less at

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Speaker 10: the behest of foreign entities as we try to continue

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Speaker 10: to move forward right in AI innovation and all the

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Speaker 10: potential for the economy that that really houses.

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Speaker 3: A lot of the focus has been not so much

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Speaker 3: on supply chain of rare US as well as that,

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Speaker 3: but also really just the bottlenecks that we see in

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Speaker 3: delivering the AI hope and euphoria that is built into

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Speaker 3: the market, whether that's power, that's energy, whether it's land. Natalie,

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Speaker 3: where do you stand in terms of the reality of

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Speaker 3: AI and what has been thus far driving a lot

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Speaker 3: a lot of stock share and shares high this year?

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Speaker 11: Yeah?

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Speaker 10: Absolutely, I mean twenty twenty five we saw a really

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Speaker 10: intense increase in valuations there's a lot of hope in

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Speaker 10: what AI can deliver. We heard that at the DeVos

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Speaker 10: Economic Forum, also allowed and clear by many key tech

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Speaker 10: and political leaders as well. Now, in order for these

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Speaker 10: valuations to hold in twenty twenty six, and what we're

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Speaker 10: really going to have to see and it's going to

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Speaker 10: sort of earmark the year, is a close right in

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Speaker 10: the gap between how much is being spent on AI

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Speaker 10: and the ROI that we're actually going to achieve. If

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Speaker 10: we get those productivity gains, then this is absolutely a

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Speaker 10: great story of foresight. If we don't see those productivity gains,

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Speaker 10: then we're going to have a conversation much more housed

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Speaker 10: around capital misallocation.

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Speaker 3: But now, Sie, how's that going to show up? As

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Speaker 3: an economist? You looking at job's data? I mean, because

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Speaker 3: at the moment, all we're seeing is jobs cuts upon

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Speaker 3: jobs cut, which in some way seems to be going

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Speaker 3: back to AI.

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Speaker 10: Yeah, I mean, it's fascinating right what we're seeing in

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Speaker 10: the overall jobs data. I'll first sort of approach that

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Speaker 10: and then tell you as an economist what I'm looking at.

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Speaker 10: We look at the jobs data, there's not a whole

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Speaker 10: lot of evidence that the jobs that are currently being

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Speaker 10: cut is.

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Speaker 11: Due to AI.

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Speaker 10: Right, we know that that's what companies are saying. At

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Speaker 10: the same time, it's not really showing up in a

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Speaker 10: clear way in the data.

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Speaker 11: On the other hand, what.

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Speaker 10: We do really need to see is almost a discontinuous

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Speaker 10: jump in the productivity data. Right, So if we're sort

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Speaker 10: of on this level increase, what we really want to

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Speaker 10: see with AI is we're jumping up and then we're

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Speaker 10: on a totally new level playing field when we see that,

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Speaker 10: and there should be early adopters in some key industries.

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Speaker 10: I'm thinking, you know, healthcare, consulting, finance, we should see

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Speaker 10: those early signals and they should be showing up in the.

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Speaker 2: Data as soon as twenty twenty six. You think.

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Speaker 10: That, I firmly believe that's going to need to happen

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Speaker 10: in twenty twenty six in order for these valuations to

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Speaker 10: be deemed worthwhile.

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Speaker 3: We're going to be getting into these big stories that

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Speaker 3: are in the market today of how.

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Speaker 2: At the moment we continue to fuel.

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Speaker 3: The ever needing expansion of AI infrastructure, whether it's oracles

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Speaker 3: selling debt and equity, whether it's well whether or not

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Speaker 3: in video is going to be giving up to one

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Speaker 3: hundred billion dollars or not to open AI. How are

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Speaker 3: you seeing that narrative continue in twenty twenty six, and

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Speaker 3: we're going to have to see a pullback in the

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Speaker 3: amount that the companies are committing.

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Speaker 10: You know, I think it's more so we're really going

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Speaker 10: to have to see the ROI in a meaningful way

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Speaker 10: that we can go back to. And again that gets

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Speaker 10: back to productivity, and the risk really is as we

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Speaker 10: sort of pull all of these levers and they get

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Speaker 10: more and more complex, it becomes a much more opaic environment,

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Speaker 10: right for investors to really operate in, and so the

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Speaker 10: risk of those valuations maybe being artificially bolstered goes up.

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Speaker 3: Just from your perspective, the narrative of circular deals is

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Speaker 3: that actually, in many ways we often put it in

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Speaker 3: a negative context, but that's exactly what in VIDEOS should

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Speaker 3: be doing, investing in its own clients to be able

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Speaker 3: to foster the potential ROI that we might see in

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Speaker 3: this locks that jump.

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Speaker 11: Yeah, I mean absolutely right.

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Speaker 10: So if we see this truly meaningful transformation in the

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Speaker 10: economy that's sort of promised with AI, then.

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Speaker 11: We're in a great spot, right.

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Speaker 10: These circular investing schemes that is excellent foresight by these companies.

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Speaker 10: If we don't see that, right, that's the real risk

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Speaker 10: of pretty significant market correction, right because that investing scheme,

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Speaker 10: it is bolstering the overall revenue numbers that we're seeing.

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Speaker 2: What therefore are some more of the headwinds.

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Speaker 3: Other than waiting for ROAI, we're also still tackling tariffs,

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Speaker 3: We're still worried about South Korea's relationship with the United States,

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Speaker 3: for example in the here and now, let alone China.

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Speaker 3: What could be the headwind that you're looking out for?

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Speaker 10: You know, one head wind I'm particularly interested in tracking

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Speaker 10: is actually jobs. Right, So we're in a labor market overall.

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Speaker 10: When we talk about the macroeconomy that's quite soft. But

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Speaker 10: when we speak specifically to AI, machine learning, sort of

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Speaker 10: these high powered tech jobs, we have a little bit

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Speaker 10: of a bottleneck there. And so something really interesting that

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Speaker 10: came out of the US Taiwan trade deal just a

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Speaker 10: few weeks ago was this goal, right of onshoring significant

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Speaker 10: supply chain efforts from Taiwan to the US.

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Speaker 11: In order to do that, we're also.

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Speaker 10: Going to need significant changes in our workforce development. And

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Speaker 10: there's a risk there, right, because We've had meaningful policy

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Speaker 10: changes over the last year alone.

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Speaker 3: Fascinating Take Massady Gaga come back soon, we hope. Principal

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Speaker 3: economist over at Board coming up, elamsk will is in

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Speaker 3: advanced talks to combine SpaceX with Xai. Will have all

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Speaker 3: the details. Next, this is Broombed Tech checking on on

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Speaker 3: Tesla shares well. We're seeing the impact of European sluggishness again.

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Speaker 3: You saw it throughout twenty twenty five, but down two.

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Speaker 2: And a half percent.

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Speaker 3: As we understand, European car sales of Tesla's in particular

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Speaker 3: slumped into twenty twenty six, in particular absolutely plummeting French

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Speaker 3: shells down forty two percent. They only sold six hundred

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Speaker 3: and sixty one cars. Norway registrations plunging eighty eight percent.

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Speaker 2: But that says we.

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Speaker 3: Hear specific changes in policy over in Noise in particular,

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Speaker 3: but look generally Evy registrations going higher in Europe, but

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Speaker 3: just not the Tesla, whether it's a political read across

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Speaker 3: or whether indeed it continues to be something around the

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Speaker 3: brand and a slower adoption of older models versus the

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Speaker 3: Chinese one. But let's move on to other areas of

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Speaker 3: Elon Musk's empire right now, because we understand that he

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Speaker 3: is in advanced talks to combine SpaceX with Xai, according

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Speaker 3: to sources, a deal that would combine, of course, two

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Speaker 3: of the largest closely held companies in the world. I

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Speaker 3: just think XAAA is valued two hundred billion dollars. SpaceX

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Speaker 3: is currently worth eight hundred billion dollars at the last

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Speaker 3: Camp and their Deals Team Managing editor Ianna Baker joins

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Speaker 3: us some more, there's been a lot of conversation about

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Speaker 3: somehow his empire combining forces, whether it's Tesla and SpaceX

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Speaker 3: or Xai and SpaceX. It looks like the latter is

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Speaker 3: the more likely at the moment.

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Speaker 12: That's the idea that's gained traction in you know, late

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Speaker 12: last week and over the weekend, that it looks like

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Speaker 12: these two private companies SpaceX and Xai, which also on X,

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Speaker 12: would come together. It's possible, and the future Tesla could

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Speaker 12: be involved. There's a lot of theories that one day

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Speaker 12: there's just going to be one huge Elon must conglomerate.

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Speaker 12: But for now, at least it looks like this is

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Speaker 12: the plan and that SpaceX would still go public later

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Speaker 12: this year.

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Speaker 2: I can see that.

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Speaker 3: The benefit for xais that it needs a ton of money.

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Speaker 3: What is in theory the benefit to investors of both

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Speaker 3: these companies buy culbination.

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Speaker 12: A lot of this is futuristic. If investors in SpaceX

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Speaker 12: want to see these data centers in space one day,

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Speaker 12: which there's been some filings that could indicate maybe that's

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Speaker 12: something they're working on. This is a way to bring

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Speaker 12: that together. But definitely, you know, is it a bailout

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Speaker 12: of XAI, you know, compared to SpaceX hard to say.

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Speaker 12: We don't know any details on what is the structure

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Speaker 12: right now, what shares will be transferred or exchange or

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Speaker 12: swaps for each other, so those details still need to

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Speaker 12: come out to see, you know, how shareholders make out.

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Speaker 3: And what sort of approvals do they need because we

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Speaker 3: understand a lot of this has got investors support, but

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Speaker 3: do they need to Can it just be done because

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Speaker 3: it must thinks it's the right thing to do.

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Speaker 12: It's hard to say, but last year when x and

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Speaker 12: Xai merge, it kind of just happened in an ex

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Speaker 12: post and that's fat A lot of this, especially when

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Speaker 12: there's private companies, the M and A is very much

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Speaker 12: behind the scenes. Maybe an investment bank gets brought on

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Speaker 12: for a fairness opinion, or there's certainly law firms, but

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Speaker 12: it's hard to say. It's not like a public shareholder

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Speaker 12: deal or you know, there might be committees, but a lot.

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Speaker 11: Of it's done behind the scenes.

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Speaker 12: And if Tesla had been part of this merger, then

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Speaker 12: you might see more public information or independent board shareholder

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Speaker 12: votes and whatnot. But this is all going to be

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Speaker 12: happening kind of under the radar.

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00:21:38,320 --> 00:21:39,720
Speaker 2: Briefly, who would run it?

442
00:21:40,400 --> 00:21:41,359
Speaker 11: That's a great question.

443
00:21:42,320 --> 00:21:45,120
Speaker 12: You know, Xai has brought on Anthony Armstrong, a former

444
00:21:45,160 --> 00:21:47,639
Speaker 12: investment banker and who worked in the government. You know,

445
00:21:47,720 --> 00:21:51,119
Speaker 12: SpaceX has leadership, and our reporting you know, doesn't have

446
00:21:51,200 --> 00:21:53,639
Speaker 12: the answers. But there's certainly a few people in Elon

447
00:21:53,760 --> 00:21:57,600
Speaker 12: Musk's sphere that could you know, potentially run this. Apparently

448
00:21:57,680 --> 00:22:00,240
Speaker 12: all his executives do everything at all the company, so

449
00:22:00,320 --> 00:22:02,280
Speaker 12: maybe it's just everyone.

450
00:22:02,600 --> 00:22:05,440
Speaker 3: Certainly there's cross pollination already. Leanna Baker is a great

451
00:22:05,440 --> 00:22:07,959
Speaker 3: scoop that came out earlier today. We so appreciate it. Meanwhile,

452
00:22:07,960 --> 00:22:10,639
Speaker 3: coming up Oracle, it's raising to build out to day

453
00:22:10,680 --> 00:22:13,280
Speaker 3: our infrastructure, with plans to raise up to fifty billion

454
00:22:13,359 --> 00:22:14,480
Speaker 3: dollars on that.

455
00:22:14,560 --> 00:22:26,359
Speaker 2: Next, this is blue Beg Tech. Welcome back to Blue

456
00:22:26,400 --> 00:22:27,880
Speaker 2: Beg Tech. We check in on these market.

457
00:22:27,880 --> 00:22:29,760
Speaker 3: It's a bit of a reprieve if you're in stocks

458
00:22:29,800 --> 00:22:31,840
Speaker 3: and the dollar today, not so much if you're in

459
00:22:31,840 --> 00:22:33,960
Speaker 3: gold and silver or up nineteen percent on the Nasdaq

460
00:22:34,040 --> 00:22:35,800
Speaker 3: one hundred is we get a bit of a bounce

461
00:22:35,840 --> 00:22:38,840
Speaker 3: back after a couple of days selling on big tech stocks.

462
00:22:38,920 --> 00:22:41,399
Speaker 3: We're looking at Bitcoin, It's seventy nine thousand. Look it's

463
00:22:41,480 --> 00:22:43,000
Speaker 3: up on the day, but boy was it sold off

464
00:22:43,000 --> 00:22:46,320
Speaker 3: hard throughout the weekend. Once again, we're questioning people's desire

465
00:22:46,359 --> 00:22:48,840
Speaker 3: full risk assets. More broadly, at these sorts of valuations.

466
00:22:49,080 --> 00:22:53,120
Speaker 3: Digital gold has not been particularly loved. Meanwhile, gold got

467
00:22:53,160 --> 00:22:56,960
Speaker 3: absolutely hammered on Friday and continuing into Monday. But let's

468
00:22:56,960 --> 00:22:59,000
Speaker 3: look at some of the other areas of focus when

469
00:22:59,000 --> 00:23:01,639
Speaker 3: it comes to individual stocks. The mood because underneath the

470
00:23:01,640 --> 00:23:03,280
Speaker 3: hood and Video has been one of the ways down

471
00:23:03,320 --> 00:23:05,720
Speaker 3: in terms of points. We're going to dig into why

472
00:23:05,800 --> 00:23:08,119
Speaker 3: in Video is perhaps reassessing how much is going to

473
00:23:08,119 --> 00:23:10,639
Speaker 3: be committing to Open AI's infrastructure build out, how it

474
00:23:10,720 --> 00:23:13,080
Speaker 3: commits to that as well. So we also see how

475
00:23:13,119 --> 00:23:15,200
Speaker 3: Oracle is up to and a half percent, having brought

476
00:23:15,240 --> 00:23:17,280
Speaker 3: a little bit more transparency as to what they need

477
00:23:17,320 --> 00:23:20,720
Speaker 3: to raise for its own AI infrastructure, largely to open

478
00:23:20,760 --> 00:23:24,760
Speaker 3: AI bonds stock. The sales are upon us already. Bloomberg's

479
00:23:24,760 --> 00:23:27,080
Speaker 3: Brodie Ford joins us, who was working hard all weekend

480
00:23:27,560 --> 00:23:30,200
Speaker 3: because it was on a Sunday that we learn that

481
00:23:30,240 --> 00:23:32,199
Speaker 3: here's a company that's looking to raise what up to

482
00:23:32,240 --> 00:23:34,080
Speaker 3: fifty billion and a make sure of equity and.

483
00:23:34,040 --> 00:23:38,600
Speaker 13: Debt Sunday night, it's time to raise more money. Yeah,

484
00:23:38,680 --> 00:23:41,159
Speaker 13: it was kind of a unique situation to have this

485
00:23:41,280 --> 00:23:43,840
Speaker 13: kind of large announcement from a company as mature as

486
00:23:43,880 --> 00:23:47,760
Speaker 13: Oracle on a Sunday. But what that really underscores is

487
00:23:47,760 --> 00:23:50,679
Speaker 13: how Oracle has become this poster child of all the

488
00:23:50,720 --> 00:23:55,359
Speaker 13: AI financing fears. It's expected to be negative free cash

489
00:23:55,400 --> 00:23:57,520
Speaker 13: flow for the next couple of years as it builds

490
00:23:57,560 --> 00:24:00,159
Speaker 13: massive data centers, and the big question has been and

491
00:24:00,760 --> 00:24:02,880
Speaker 13: how much money will they have to borrow to do that?

492
00:24:03,119 --> 00:24:06,160
Speaker 13: Will they be able to maintain their investment grade? And

493
00:24:06,400 --> 00:24:09,679
Speaker 13: they essentially were trying to respond to these concerns and

494
00:24:09,720 --> 00:24:11,960
Speaker 13: say that no, we have a solid plan.

495
00:24:12,560 --> 00:24:16,040
Speaker 3: And it's interesting maybe they've been learned from past haste

496
00:24:16,080 --> 00:24:17,760
Speaker 3: with a previous bond sell at the end of last

497
00:24:17,840 --> 00:24:19,520
Speaker 3: year where Bonholder was an own suing because.

498
00:24:19,320 --> 00:24:20,800
Speaker 2: They felt that they didn't get enough.

499
00:24:21,200 --> 00:24:23,360
Speaker 3: Well clear transparency that this was a company that will

500
00:24:23,359 --> 00:24:24,879
Speaker 3: be tapping the debt market a lot.

501
00:24:25,240 --> 00:24:26,600
Speaker 2: When we're looking at what they're getting.

502
00:24:26,359 --> 00:24:29,280
Speaker 3: Today, though there's three year floating rate notes, there's three

503
00:24:29,359 --> 00:24:31,520
Speaker 3: a fixed, five year fixed, seven year fixed, what's a

504
00:24:31,520 --> 00:24:32,200
Speaker 3: long seventy.

505
00:24:32,080 --> 00:24:33,239
Speaker 2: Ar, ten year, thirty or forty year.

506
00:24:33,359 --> 00:24:35,359
Speaker 3: How much they're having to pay for the debt side

507
00:24:35,359 --> 00:24:36,880
Speaker 3: of the equation, which they actually say is the only

508
00:24:36,880 --> 00:24:38,600
Speaker 3: time they're going to be tapping the bond markets.

509
00:24:38,280 --> 00:24:42,480
Speaker 13: This year, Well they're gonna be. They're expected to get

510
00:24:42,480 --> 00:24:44,600
Speaker 13: a ton of free cash flow once you look a

511
00:24:44,640 --> 00:24:47,800
Speaker 13: couple of years out, once those OAI contracts and others

512
00:24:47,840 --> 00:24:51,520
Speaker 13: start flowing. And what's particularly interesting today is to see

513
00:24:51,560 --> 00:24:55,120
Speaker 13: them issue equity and often when that happens, investors don't

514
00:24:55,160 --> 00:24:57,840
Speaker 13: like dilution and the stock goes down. So it's funny

515
00:24:57,880 --> 00:25:00,480
Speaker 13: to see the stock go up on an equity insurance.

516
00:25:01,040 --> 00:25:03,600
Speaker 13: And what that means is that the company is willing

517
00:25:03,640 --> 00:25:06,239
Speaker 13: to do what it takes to keep investment grade. It

518
00:25:06,280 --> 00:25:09,320
Speaker 13: does not want to get saddled with some incredible interest rates.

519
00:25:09,640 --> 00:25:11,760
Speaker 13: We've heard a lot of concerns on these loans, and

520
00:25:11,840 --> 00:25:13,919
Speaker 13: so they're trying to show that they're going to do

521
00:25:13,960 --> 00:25:15,840
Speaker 13: what it takes to maintain a good rating.

522
00:25:16,160 --> 00:25:18,359
Speaker 3: And actually that was really what we heard from the

523
00:25:18,400 --> 00:25:21,920
Speaker 3: analyst space coming out here, saying this should be positive

524
00:25:22,000 --> 00:25:24,480
Speaker 3: sign that they are really committed to avoiding junk.

525
00:25:26,320 --> 00:25:29,480
Speaker 13: Absolutely, and I think what it is too is just clarity.

526
00:25:29,560 --> 00:25:32,960
Speaker 13: I mean, there's been so much uncertainty about Hey, is

527
00:25:33,000 --> 00:25:35,399
Speaker 13: Oracle going to be able to get all of the

528
00:25:35,440 --> 00:25:37,560
Speaker 13: loans it needs? Is it going to be able to

529
00:25:37,600 --> 00:25:40,639
Speaker 13: complete this build out seamlessly? Is Open AI going to

530
00:25:40,640 --> 00:25:43,280
Speaker 13: pay its bills? That's a lot of the questions that

531
00:25:43,280 --> 00:25:45,199
Speaker 13: have been weighing on the stock and so kind of

532
00:25:45,240 --> 00:25:48,879
Speaker 13: any new information that shows a specific plan, almost whatever

533
00:25:48,880 --> 00:25:51,560
Speaker 13: that plan is, as long as it seems reasonable, is

534
00:25:51,600 --> 00:25:52,919
Speaker 13: going to be read as good news.

535
00:25:53,240 --> 00:25:55,880
Speaker 3: We'll see how the up to twenty five billion dollars

536
00:25:55,920 --> 00:25:57,520
Speaker 3: on sale goes today and and need some of those

537
00:25:57,520 --> 00:26:01,520
Speaker 3: convertible notes as well. Broddie Ford all over the Oracle story,

538
00:26:01,560 --> 00:26:05,120
Speaker 3: and let's stay with the AI related debt story now,

539
00:26:05,160 --> 00:26:07,960
Speaker 3: because the cost of data center build out, it is

540
00:26:08,000 --> 00:26:08,760
Speaker 3: expected to.

541
00:26:08,640 --> 00:26:10,080
Speaker 2: Top three trillion dollars.

542
00:26:10,280 --> 00:26:12,720
Speaker 3: An Oracle isn't the only tech company borrowing to finance

543
00:26:12,760 --> 00:26:16,200
Speaker 3: their plans, but he works senior private credit reporter policylks.

544
00:26:15,680 --> 00:26:16,439
Speaker 2: And joins us.

545
00:26:16,440 --> 00:26:19,679
Speaker 3: Now, who you've been looking across the board at the

546
00:26:19,720 --> 00:26:22,680
Speaker 3: panacee all ways in which companies are trying to finance

547
00:26:22,760 --> 00:26:24,960
Speaker 3: an extraordinary amount of build out right now? How much

548
00:26:24,960 --> 00:26:28,159
Speaker 3: are they leaning on public bond markets or indeed the

549
00:26:28,200 --> 00:26:29,280
Speaker 3: rest of the debt system.

550
00:26:29,440 --> 00:26:31,119
Speaker 14: So the best way to think about this is they

551
00:26:31,119 --> 00:26:34,480
Speaker 14: are tapping all debt markets. So we have obviously the

552
00:26:34,520 --> 00:26:37,560
Speaker 14: typical unbalanced sheet corporate borrowing, which you see like with

553
00:26:37,600 --> 00:26:40,560
Speaker 14: the Oracle deal today. That can be an investment grade bond,

554
00:26:40,600 --> 00:26:42,560
Speaker 14: a hiled bond, or a leverage loan, or even a

555
00:26:42,600 --> 00:26:45,160
Speaker 14: private credit direct loan. But there's a lot of off

556
00:26:45,200 --> 00:26:47,880
Speaker 14: balance sheet borrowing happening as well. I know that sounds

557
00:26:47,880 --> 00:26:49,600
Speaker 14: a little bit scary when you first hear the words

558
00:26:49,600 --> 00:26:51,800
Speaker 14: off balance sheet, but what it simply means is that

559
00:26:51,880 --> 00:26:54,520
Speaker 14: instead of an investor lending to the company, they're lending

560
00:26:54,600 --> 00:26:57,560
Speaker 14: to the actual data center project itself. So they create

561
00:26:57,560 --> 00:27:00,159
Speaker 14: a special purpose vehicle that is the actual building, or

562
00:27:00,160 --> 00:27:03,040
Speaker 14: an owner and borrower to create the data center. When

563
00:27:03,040 --> 00:27:05,480
Speaker 14: you tap that, that opens up a whole other realm

564
00:27:05,480 --> 00:27:08,800
Speaker 14: of markets. So, for example, the bank project finance construction

565
00:27:08,880 --> 00:27:11,320
Speaker 14: loan market has been heavily involved in this space. You're

566
00:27:11,320 --> 00:27:14,280
Speaker 14: seeing private placements, which are typically insurance companies. You're seeing

567
00:27:14,400 --> 00:27:17,159
Speaker 14: structured finance investors in the form of commercial mortgage.

568
00:27:16,920 --> 00:27:18,920
Speaker 11: Backed securities and asset backed securities.

569
00:27:18,920 --> 00:27:22,080
Speaker 14: You're seeing private credit, You're seeing GPU finance for the chips.

570
00:27:22,200 --> 00:27:24,600
Speaker 11: It is touching all parts of the debt markets, and.

571
00:27:24,520 --> 00:27:27,440
Speaker 3: We think about cole Weaves very much thinking about financing

572
00:27:27,440 --> 00:27:29,400
Speaker 3: of the chips to begin with, we saw that deal

573
00:27:29,440 --> 00:27:31,359
Speaker 3: between blue Out a meta is a real pin up.

574
00:27:31,240 --> 00:27:33,919
Speaker 2: And the private slubpot of the business. What are they

575
00:27:33,960 --> 00:27:35,119
Speaker 2: having to pay for all of this?

576
00:27:35,720 --> 00:27:38,359
Speaker 14: It really depends, and it can range from just a

577
00:27:38,400 --> 00:27:41,200
Speaker 14: little bit over investment grade all the way to double

578
00:27:41,280 --> 00:27:44,240
Speaker 14: digit teams mid teens yields.

579
00:27:44,280 --> 00:27:45,760
Speaker 11: It just kind of depends on the structure.

580
00:27:45,920 --> 00:27:48,280
Speaker 14: There's also a big difference between something that is a

581
00:27:48,359 --> 00:27:52,560
Speaker 14: hyperscaler borrowing or ultimately backed by a hyperscaler versus some

582
00:27:52,560 --> 00:27:55,480
Speaker 14: of the more risky things where maybe it's a small

583
00:27:55,840 --> 00:27:57,880
Speaker 14: early stage company that needs to borrow money.

584
00:27:57,880 --> 00:27:58,760
Speaker 11: That's all in on AI.

585
00:27:59,359 --> 00:28:01,240
Speaker 2: We've had a lot of new neo clouds.

586
00:28:01,320 --> 00:28:04,800
Speaker 3: It ca'll hang out you for example, just tell us

587
00:28:04,840 --> 00:28:07,320
Speaker 3: about the need for transparency. Though, what so interesting is

588
00:28:07,359 --> 00:28:10,840
Speaker 3: the equity markets response to Oracle today? It's just few

589
00:28:10,880 --> 00:28:12,919
Speaker 3: you're telling us a little bit more. When we have

590
00:28:13,000 --> 00:28:15,919
Speaker 3: so much private credit getting involved, do investors feel they

591
00:28:15,960 --> 00:28:19,399
Speaker 3: have enough information about just how broadly the borrowing is

592
00:28:19,440 --> 00:28:20,640
Speaker 3: going from certain issues?

593
00:28:21,000 --> 00:28:22,479
Speaker 11: I think it depends on the issuer.

594
00:28:22,560 --> 00:28:25,560
Speaker 14: So Oracle, for example, well, it is doing this off

595
00:28:25,600 --> 00:28:29,240
Speaker 14: balance sheet borrowing, it is still tied to those data

596
00:28:29,280 --> 00:28:32,040
Speaker 14: centers through lease commitments, and that does show up publicly

597
00:28:32,080 --> 00:28:33,240
Speaker 14: in their financial statements.

598
00:28:33,440 --> 00:28:35,120
Speaker 11: But I think for a lot.

599
00:28:34,920 --> 00:28:37,800
Speaker 14: Of these deals it's actually pretty much all private. It's

600
00:28:37,840 --> 00:28:39,640
Speaker 14: also a lot of times private company is doing it,

601
00:28:39,680 --> 00:28:41,760
Speaker 14: so then the investor base is just a very different

602
00:28:41,760 --> 00:28:44,880
Speaker 14: investor base. And I hope we're getting disclosures, but it's unclear.

603
00:28:45,120 --> 00:28:46,920
Speaker 14: And I think what makes it nerve wracking for the

604
00:28:46,920 --> 00:28:50,080
Speaker 14: markets is even if those private company investors are learning

605
00:28:50,120 --> 00:28:52,200
Speaker 14: about it, maybe the rest of the market doesn't know,

606
00:28:52,240 --> 00:28:55,000
Speaker 14: and that can just cause unease and uncertainty around the

607
00:28:55,040 --> 00:28:57,680
Speaker 14: absolute scale of the debt being borrowed right now.

608
00:28:57,560 --> 00:29:00,200
Speaker 3: Well, said Bloommegg's polastics and got to go and read

609
00:29:00,240 --> 00:29:04,800
Speaker 3: her offers throughout all about the debt markets. Really interesting stuff. Meanwhile,

610
00:29:04,840 --> 00:29:07,480
Speaker 3: let's go to other Ai build out. In video, CEO

611
00:29:07,560 --> 00:29:10,360
Speaker 3: Jensen Huang says the company has proposed one hundred billion

612
00:29:10,360 --> 00:29:14,040
Speaker 3: dollar investment in open Ai was quote never a commitment.

613
00:29:14,480 --> 00:29:17,400
Speaker 3: Speaking to reporters in time, Hay over the weekend reiterated

614
00:29:17,400 --> 00:29:19,960
Speaker 3: his support for the chat chip tea maker, but did

615
00:29:20,000 --> 00:29:21,320
Speaker 3: not disclose the total investment.

616
00:29:21,360 --> 00:29:25,640
Speaker 6: Just to listen, Sam is closing the realm, and we

617
00:29:25,680 --> 00:29:26,760
Speaker 6: will absolutely be.

618
00:29:26,760 --> 00:29:29,960
Speaker 5: Interupted in their home mode, their home mode.

619
00:29:31,040 --> 00:29:33,840
Speaker 7: We will invest a great deal of money, probably the

620
00:29:34,040 --> 00:29:35,840
Speaker 7: largest investment we've ever made a.

621
00:29:36,160 --> 00:29:38,520
Speaker 3: Large So is that going to be your overall one

622
00:29:38,560 --> 00:29:39,160
Speaker 3: hundred peal?

623
00:29:39,240 --> 00:29:41,920
Speaker 7: No, no, no, no, no, no, nothing like that.

624
00:29:43,120 --> 00:29:46,200
Speaker 3: Fair Figeman joins us now for what was a busy weekend,

625
00:29:46,440 --> 00:29:50,480
Speaker 3: as always from mister Huango for in Taipei. Look are

626
00:29:50,520 --> 00:29:53,160
Speaker 3: we meant to be surprised that when you've inked some

627
00:29:53,200 --> 00:29:55,200
Speaker 3: sort of deal and said look we're good for up

628
00:29:55,200 --> 00:29:57,520
Speaker 3: to one hundred billion dollars that actually that hasn't been

629
00:29:57,560 --> 00:30:00,160
Speaker 3: fully ironed out and agreed and it's up to sch

630
00:30:00,200 --> 00:30:02,560
Speaker 3: Mega walk coming online a little bit.

631
00:30:02,640 --> 00:30:03,920
Speaker 8: I mean, I think it's important to step back. I

632
00:30:03,920 --> 00:30:06,440
Speaker 8: remember when this deal was announced in a few months back.

633
00:30:06,520 --> 00:30:08,960
Speaker 8: It was a monumental moment for both companies. One that

634
00:30:09,040 --> 00:30:11,120
Speaker 8: attested to the scope of the buildout that opening I

635
00:30:11,280 --> 00:30:13,480
Speaker 8: had in mind and Nvidia's role in that, and also

636
00:30:13,520 --> 00:30:15,880
Speaker 8: a lot of the circular deals concerns. To your point,

637
00:30:15,920 --> 00:30:17,440
Speaker 8: there are a lot of daylight there. They've ever set

638
00:30:17,440 --> 00:30:19,880
Speaker 8: a firm timetable or a fixed amount, and so there

639
00:30:19,960 --> 00:30:21,480
Speaker 8: was room to imagine and maybe it wouldn't be one

640
00:30:21,520 --> 00:30:24,200
Speaker 8: hundred billion dollars, But now I think it's a question

641
00:30:24,280 --> 00:30:26,200
Speaker 8: of just how far away is it from that, and

642
00:30:26,240 --> 00:30:27,880
Speaker 8: again over what timetable.

643
00:30:28,160 --> 00:30:31,160
Speaker 3: Some of the reporting from other networks and outlets has

644
00:30:31,200 --> 00:30:33,920
Speaker 3: been that actually in video is getting uncomfortable with a

645
00:30:33,920 --> 00:30:37,640
Speaker 3: competitive landscape, uncomfortable with a so called discipline of open AI.

646
00:30:38,240 --> 00:30:40,120
Speaker 3: Is that something that we're hearing in our reporting or

647
00:30:40,200 --> 00:30:42,240
Speaker 3: is this more this is a company that's maybe he

648
00:30:42,360 --> 00:30:44,760
Speaker 3: is aware of the criticism around circular financing and it's

649
00:30:44,840 --> 00:30:46,239
Speaker 3: just been questioning a little bit more.

650
00:30:46,280 --> 00:30:48,000
Speaker 8: Yeah, I mean, it's unclear, and it's a delicate balance

651
00:30:48,040 --> 00:30:50,520
Speaker 8: here between these two companies. Even if Nvidia is maybe

652
00:30:50,560 --> 00:30:52,640
Speaker 8: having those concerns that you lay out, Opening Eye is

653
00:30:52,640 --> 00:30:54,800
Speaker 8: still very central both to a larger landscape and to

654
00:30:54,960 --> 00:30:58,160
Speaker 8: Nvidia's own deployment of chips. It's clear that the relationship

655
00:30:58,200 --> 00:31:00,840
Speaker 8: between these two firms has not broken down. As Jensen said,

656
00:31:01,080 --> 00:31:03,600
Speaker 8: we'll probably be the largest investment they've ever made, and

657
00:31:03,600 --> 00:31:06,120
Speaker 8: will probably be the largest funding round we've ever seen.

658
00:31:06,920 --> 00:31:08,600
Speaker 8: But it's possible there is some daylight there.

659
00:31:08,880 --> 00:31:11,640
Speaker 3: Let's just go to that funding round because that's what's

660
00:31:11,640 --> 00:31:14,959
Speaker 3: currently under negotiation. We know that Middle Eastern investors has

661
00:31:14,960 --> 00:31:17,520
Speaker 3: been eyed up, we know the Amazon's interested in the round.

662
00:31:17,800 --> 00:31:20,200
Speaker 3: So what sort of scale are we talking and how

663
00:31:20,240 --> 00:31:23,520
Speaker 3: will it be related to using certain companies equipment or

664
00:31:23,720 --> 00:31:25,320
Speaker 3: giga what's coming online?

665
00:31:25,400 --> 00:31:27,280
Speaker 8: Yeah, so, I mean we've reported that up to one

666
00:31:27,320 --> 00:31:29,560
Speaker 8: hundred billion dollars in this funding round, which again would

667
00:31:29,560 --> 00:31:31,960
Speaker 8: be the largest that we've ever seen, trumping Opening Eyes

668
00:31:32,000 --> 00:31:35,200
Speaker 8: prior forty billion dollar funding rounds. We've seen that Amazon,

669
00:31:35,960 --> 00:31:39,680
Speaker 8: SoftBank and Vidia each willing to potentially commit billions or

670
00:31:39,680 --> 00:31:41,880
Speaker 8: tens of billions of dollars to this round. Does not

671
00:31:42,000 --> 00:31:44,200
Speaker 8: currently feel like Opening Eye is hurting for money in

672
00:31:44,240 --> 00:31:46,720
Speaker 8: that one respect remains to be seen. And then to

673
00:31:46,800 --> 00:31:50,640
Speaker 8: your question, not just in Vidia, but certainly Amazon, Microsoft,

674
00:31:50,720 --> 00:31:53,840
Speaker 8: like these are all, if not circular relationships. Then continued

675
00:31:53,880 --> 00:31:58,040
Speaker 8: examples of the companies using the suppliers to fund their ambitions.

676
00:31:58,680 --> 00:32:00,840
Speaker 3: Well, we'll keep a track of it, figure and breaking

677
00:32:00,840 --> 00:32:02,800
Speaker 3: it all down on that relationship between the video and

678
00:32:02,840 --> 00:32:06,200
Speaker 3: open Ai. Meanwhile, coming up, let's talk about crypto exchanges.

679
00:32:06,200 --> 00:32:07,040
Speaker 2: They're under pressure.

680
00:32:07,160 --> 00:32:09,640
Speaker 3: Plunging trading volumes is really the issue. At the moment,

681
00:32:09,680 --> 00:32:12,800
Speaker 3: we're off by just a couple of percent. We've cooped

682
00:32:12,800 --> 00:32:14,320
Speaker 3: some of our losses on the day, but we'll dig

683
00:32:14,360 --> 00:32:14,880
Speaker 3: into it next.

684
00:32:14,920 --> 00:32:25,720
Speaker 2: This has been their tech bearish sentiment in crypto.

685
00:32:25,840 --> 00:32:29,120
Speaker 3: It is weighing on the exchanges as investors pull back

686
00:32:29,160 --> 00:32:32,280
Speaker 3: on trading platforms like coinbase and Gemini, Well, they're seeing

687
00:32:32,280 --> 00:32:36,240
Speaker 3: stock prices and training volumes drop more on the entire ecosystem.

688
00:32:36,320 --> 00:32:38,680
Speaker 3: Let's bring in Boombog cross asset reporter Isabel Lee and

689
00:32:38,720 --> 00:32:42,480
Speaker 3: no Wonder. Companies exposed to trading and volume are going

690
00:32:42,520 --> 00:32:44,480
Speaker 3: to be feeling the pain when everyone probably takes.

691
00:32:44,360 --> 00:32:46,440
Speaker 2: A bit of a step back at this moment, definitely

692
00:32:46,480 --> 00:32:46,959
Speaker 2: a step back.

693
00:32:47,000 --> 00:32:48,960
Speaker 15: I was sitting in my SOFA nicely over the weekend,

694
00:32:48,960 --> 00:32:51,400
Speaker 15: and then bitcoin fell. It fell to as slower since April,

695
00:32:51,440 --> 00:32:53,719
Speaker 15: the tarify of in volatility. So it's made a lot

696
00:32:53,720 --> 00:32:56,800
Speaker 15: of investors panic. Granted, thin liquidity over the weekend and

697
00:32:56,840 --> 00:33:00,000
Speaker 15: fewer traders, fewer online, and we know they've been Bitcoin falls.

698
00:33:00,400 --> 00:33:02,560
Speaker 15: It triggers a wave of liquidations. We saw billions and

699
00:33:02,600 --> 00:33:05,680
Speaker 15: billions of long and short positions liquidated. But still investors

700
00:33:05,720 --> 00:33:09,240
Speaker 15: have been increasingly becoming a little unhappy with bitcoin because

701
00:33:09,280 --> 00:33:11,840
Speaker 15: macro factors that used to help it before haven't been

702
00:33:11,880 --> 00:33:13,880
Speaker 15: really helping. Like a weeker dollar that's supposed to be

703
00:33:13,920 --> 00:33:16,160
Speaker 15: good for bitcoin, but it's not really helping right now.

704
00:33:16,160 --> 00:33:18,920
Speaker 15: So now we're seeing January decline and it's really one

705
00:33:18,960 --> 00:33:20,800
Speaker 15: of the longest streaks. I think it's a fourth straight

706
00:33:20,880 --> 00:33:23,280
Speaker 15: monthly decline, the longest streak since twenty eighteen.

707
00:33:23,400 --> 00:33:26,719
Speaker 3: I mean, bitcoin shed nearly eleven percent in January. At

708
00:33:26,760 --> 00:33:29,360
Speaker 3: one point it was trading the lowest since President Trump's

709
00:33:29,360 --> 00:33:32,200
Speaker 3: returned to the White House. Much had been hoped for

710
00:33:32,640 --> 00:33:36,560
Speaker 3: regulatory changes, in particular what white get through Congress that

711
00:33:36,640 --> 00:33:37,880
Speaker 3: seems to be put on ice.

712
00:33:38,160 --> 00:33:40,360
Speaker 2: Is that also an issue? Definitely, it's put on.

713
00:33:40,400 --> 00:33:42,520
Speaker 15: Ice because if this president, which is supposed to be

714
00:33:42,560 --> 00:33:44,840
Speaker 15: the most crypto friendly president, can't help it, what can

715
00:33:44,920 --> 00:33:47,000
Speaker 15: And you also see it and flows flows are drying up.

716
00:33:47,040 --> 00:33:49,400
Speaker 15: I mean, sure it's just a bucket and this we

717
00:33:49,440 --> 00:33:51,360
Speaker 15: still have more than a billion dollars in assets, but

718
00:33:51,400 --> 00:33:53,360
Speaker 15: you see flows drying up. I think investors have been

719
00:33:53,400 --> 00:33:55,560
Speaker 15: spoiled because it used to be always green on disc

720
00:33:55,560 --> 00:33:58,800
Speaker 15: green inflos after inflows. When bitcoin ETF's launch in twenty

721
00:33:58,840 --> 00:34:01,160
Speaker 15: twenty four, which is crazy, two years ago, it made

722
00:34:01,280 --> 00:34:03,960
Speaker 15: records after records, and now I mean some would say

723
00:34:04,000 --> 00:34:06,440
Speaker 15: it's consolidation. Some would say, oh great, now I can

724
00:34:06,480 --> 00:34:08,839
Speaker 15: buy it's an attractive entry point because for a while

725
00:34:08,880 --> 00:34:11,200
Speaker 15: Bitcoin has been too high, and if it's too high,

726
00:34:11,239 --> 00:34:13,439
Speaker 15: I mean, how will that be an attractive entry point.

727
00:34:13,440 --> 00:34:15,799
Speaker 15: So it's a mixed sentiment out there, but for now,

728
00:34:15,800 --> 00:34:19,080
Speaker 15: you can't deny that there's some gloom in crypto.

729
00:34:18,680 --> 00:34:22,160
Speaker 3: World, some blue for Michael Sailor in particular. I mean,

730
00:34:22,280 --> 00:34:25,600
Speaker 3: just talk to us about these digital asset treasury companies

731
00:34:25,719 --> 00:34:27,800
Speaker 3: and how much this pain must be hurting.

732
00:34:27,600 --> 00:34:28,840
Speaker 11: Them, just like bitcoin.

733
00:34:28,920 --> 00:34:31,680
Speaker 15: I think digital asset treasuries are whether you love them

734
00:34:31,760 --> 00:34:33,600
Speaker 15: or you hate them. But today headlines are making for

735
00:34:33,680 --> 00:34:37,520
Speaker 15: Michael Sailor because for the first time, the plunge token's

736
00:34:37,560 --> 00:34:41,040
Speaker 15: price fell below the purchase cost of Michael Sailor's leverage

737
00:34:41,040 --> 00:34:43,880
Speaker 15: bitcoin proxy and strategy. So that's really something. There are

738
00:34:43,880 --> 00:34:45,799
Speaker 15: no margin calls yet. I want to make sure there's

739
00:34:45,840 --> 00:34:49,120
Speaker 15: no immediate financial stress, no expectation to sell bitcoin. But

740
00:34:49,320 --> 00:34:51,800
Speaker 15: it's just something worth noting. Could this be the beginning

741
00:34:51,880 --> 00:34:54,759
Speaker 15: of something? Maybe, but maybe it's also just like a

742
00:34:54,800 --> 00:34:56,879
Speaker 15: bad day, a bad week, a bad month. But it's

743
00:34:56,880 --> 00:34:59,919
Speaker 15: definitely worth noting because he is the biggest, biggest bull

744
00:35:00,160 --> 00:35:01,200
Speaker 15: of bigcoin and lots Street.

745
00:35:01,280 --> 00:35:03,560
Speaker 3: Yeah, the company's cost basis is about seventy six thousand,

746
00:35:03,600 --> 00:35:05,600
Speaker 3: and we went below that for a moment. I mean,

747
00:35:05,640 --> 00:35:08,160
Speaker 3: we see the shot stock price just get off of

748
00:35:08,160 --> 00:35:10,799
Speaker 3: its lows, but still under pressure. Once again, isabell lee

749
00:35:10,960 --> 00:35:14,239
Speaker 3: across the sasset class for us, we appreciate it. Now

750
00:35:14,280 --> 00:35:17,319
Speaker 3: coming up Palenteer earnings, they come up after the bell.

751
00:35:17,640 --> 00:35:33,240
Speaker 3: We're going to discuss what to expect. That's in Bloomberg Tech.

752
00:35:29,120 --> 00:35:29,440
Speaker 2: Earning.

753
00:35:29,520 --> 00:35:31,840
Speaker 3: Still coming all lies on pal Andeer reporting after the

754
00:35:31,840 --> 00:35:34,120
Speaker 3: closing bell today and actually, for the first time in

755
00:35:34,160 --> 00:35:37,520
Speaker 3: two years, Palentiner's shares are not rallying into a.

756
00:35:37,560 --> 00:35:38,640
Speaker 2: Quarterly earnings report.

757
00:35:38,680 --> 00:35:41,359
Speaker 3: Let's break it all down Bloomberg's Tech Equity Reporter com

758
00:35:41,400 --> 00:35:43,239
Speaker 3: and rhaning key on the day, they're up just a

759
00:35:43,280 --> 00:35:45,759
Speaker 3: little bit, but yet to date it's been brutal.

760
00:35:45,560 --> 00:35:46,279
Speaker 11: Right, it has.

761
00:35:46,320 --> 00:35:49,160
Speaker 9: And if you look even further back to November when

762
00:35:49,160 --> 00:35:51,560
Speaker 9: they hit the record high ahead of their last earnings report,

763
00:35:51,719 --> 00:35:54,240
Speaker 9: the drawdown is about twenty five percent, which is pretty

764
00:35:54,239 --> 00:35:57,600
Speaker 9: significant for Palenti, for any stock, and a very different

765
00:35:57,640 --> 00:36:01,800
Speaker 9: setup that we've seen going into our earnings from previous reports.

766
00:36:01,840 --> 00:36:05,439
Speaker 9: So it's definitely looking like, you know, the stock could

767
00:36:05,440 --> 00:36:07,359
Speaker 9: get a little bit of help. Its valuation is still

768
00:36:07,480 --> 00:36:09,359
Speaker 9: very high, even though it's come in a little bit.

769
00:36:09,440 --> 00:36:12,960
Speaker 9: With this, you know, the stocks decline, so investors are

770
00:36:12,960 --> 00:36:15,520
Speaker 9: looking for some very key things. I mean, pounds expected

771
00:36:15,520 --> 00:36:18,160
Speaker 9: to put up another great quarter. The guidance will really

772
00:36:18,200 --> 00:36:21,279
Speaker 9: be paramount, and there's a lot of volatility in this name,

773
00:36:21,320 --> 00:36:23,360
Speaker 9: so we could really see big swings in either direction.

774
00:36:23,560 --> 00:36:25,920
Speaker 3: I mean, revenue is still meant to be sixty one

775
00:36:25,960 --> 00:36:29,160
Speaker 3: percent growth fifty more than fifty percent for the fiscal

776
00:36:29,239 --> 00:36:32,279
Speaker 3: full year. But doctor CoP's got to be aware of

777
00:36:32,520 --> 00:36:36,040
Speaker 3: how many ways has deemed a bit of a mean stock,

778
00:36:36,280 --> 00:36:39,040
Speaker 3: and as we've just been discussing with crypto and bitcoin,

779
00:36:39,120 --> 00:36:41,080
Speaker 3: we've seen a lot of changes where people have been

780
00:36:41,120 --> 00:36:41,840
Speaker 3: wanting to allocate.

781
00:36:41,920 --> 00:36:42,600
Speaker 2: Is that anything to do.

782
00:36:42,600 --> 00:36:45,520
Speaker 3: With it, It's more about just a terrible time for software

783
00:36:45,520 --> 00:36:46,000
Speaker 3: in general.

784
00:36:46,280 --> 00:36:47,880
Speaker 9: I think it's a little bit more tied to the

785
00:36:47,920 --> 00:36:51,160
Speaker 9: software you know sell off. We've seen a couple analysts

786
00:36:51,239 --> 00:36:53,799
Speaker 9: commenting on that it's just gotten weighed down with the

787
00:36:53,800 --> 00:36:55,799
Speaker 9: rest of the sector. I think there also could be

788
00:36:55,840 --> 00:36:58,799
Speaker 9: you know, there's been some of a rotation away from

789
00:36:58,800 --> 00:37:01,880
Speaker 9: you know, the most expensive tech names. This definitely is

790
00:37:01,920 --> 00:37:04,920
Speaker 9: in that camp. And you know, a source said to me,

791
00:37:05,040 --> 00:37:07,720
Speaker 9: if you're looking to rotate in something's over one hundred

792
00:37:07,719 --> 00:37:11,360
Speaker 9: times you know forward earnings, that's not really maybe the

793
00:37:11,360 --> 00:37:14,640
Speaker 9: place that you're going to be looking to buy. So yeah,

794
00:37:14,680 --> 00:37:17,279
Speaker 9: we'll just really see I think doctor Karp as well,

795
00:37:17,360 --> 00:37:20,480
Speaker 9: you know, he's such a passionate CEO. People will definitely

796
00:37:20,480 --> 00:37:23,279
Speaker 9: be listening for his comments on the call, and that could,

797
00:37:23,320 --> 00:37:24,600
Speaker 9: you know, really go either way as well.

798
00:37:25,120 --> 00:37:27,600
Speaker 3: We always get some pretty choice words from doctor Carp,

799
00:37:27,840 --> 00:37:30,240
Speaker 3: pretty most common Rhyanikey, great to have you on today.

800
00:37:30,239 --> 00:37:32,680
Speaker 3: Thank you, Look Palente isn't the only big tech name

801
00:37:32,719 --> 00:37:35,840
Speaker 3: reporting earningxist week. Look how many we've got coming and

802
00:37:35,920 --> 00:37:39,160
Speaker 3: please to say Fiona Sincotter's senior analysta City Index Financial can.

803
00:37:39,080 --> 00:37:39,400
Speaker 15: Talk us to.

804
00:37:39,480 --> 00:37:42,800
Speaker 3: We've got a MD on Tuesday, Qualcom, Alphabet Wednesday, Thursday

805
00:37:42,880 --> 00:37:46,080
Speaker 3: got the big one that is an Amazon far out.

806
00:37:46,120 --> 00:37:48,479
Speaker 3: How do you embrace for some of these numbers, because look,

807
00:37:48,680 --> 00:37:52,400
Speaker 3: Microsoft last week wasn't a bad set of numbers, absolutely

808
00:37:52,480 --> 00:37:55,279
Speaker 3: beaten up when people were worried about the capital expenditure.

809
00:37:56,840 --> 00:37:57,640
Speaker 2: Yeah, that's right.

810
00:37:57,719 --> 00:38:01,400
Speaker 16: I mean, we're definitely seeing this sort of division between

811
00:38:02,040 --> 00:38:04,880
Speaker 16: those techs that are in favor and those that are not.

812
00:38:05,080 --> 00:38:07,719
Speaker 16: And I think that's going to be even more under

813
00:38:07,760 --> 00:38:11,160
Speaker 16: the microscope as these earnings come through, the market is

814
00:38:11,440 --> 00:38:16,600
Speaker 16: very much more selective about where they're looking to direct capital.

815
00:38:17,360 --> 00:38:19,239
Speaker 16: You know, before, as we said, it was just very

816
00:38:19,360 --> 00:38:22,200
Speaker 16: much more jump on that tech trade and ride it higher.

817
00:38:22,400 --> 00:38:24,719
Speaker 16: There really wasn't too much in it. But that's just

818
00:38:24,840 --> 00:38:27,160
Speaker 16: not the case anymore. And we're seeing, you know, even

819
00:38:27,239 --> 00:38:30,239
Speaker 16: numbers that come out relatively good, like we said with Microsoft,

820
00:38:30,600 --> 00:38:32,360
Speaker 16: end up with you know, a ten percent drop in

821
00:38:32,400 --> 00:38:34,440
Speaker 16: the stock. And at the same time we saw Meta

822
00:38:34,920 --> 00:38:37,800
Speaker 16: driving ten percent higher. So it does feel a little

823
00:38:37,840 --> 00:38:41,600
Speaker 16: bit more unpredictable in that respect, and it also means

824
00:38:41,600 --> 00:38:45,080
Speaker 16: that the bar I would say is even higher on

825
00:38:45,239 --> 00:38:49,319
Speaker 16: these companies to impress than it has been before, even

826
00:38:49,360 --> 00:38:52,799
Speaker 16: though valuations in some cases have come down a bit

827
00:38:52,920 --> 00:38:54,920
Speaker 16: given that sort of setout of tech that we had

828
00:38:55,000 --> 00:38:57,440
Speaker 16: seen since the November highs.

829
00:38:57,719 --> 00:39:01,160
Speaker 3: So let's just start with Palenteer for example, what would

830
00:39:01,160 --> 00:39:03,640
Speaker 3: a software company that is going to deliver more than

831
00:39:03,680 --> 00:39:05,919
Speaker 3: sixty percent earnings for share growth more than sixty percent

832
00:39:06,040 --> 00:39:08,680
Speaker 3: revenue growth have to articulate, you think to change the

833
00:39:08,760 --> 00:39:09,560
Speaker 3: sentiment on the name.

834
00:39:11,360 --> 00:39:13,600
Speaker 16: I mean, I think Ford Guidance is going to be

835
00:39:13,800 --> 00:39:17,279
Speaker 16: absolutely key, and I feel that's where sort of, you know,

836
00:39:17,440 --> 00:39:20,680
Speaker 16: Microsoft might have just sort of let the side down

837
00:39:20,760 --> 00:39:24,239
Speaker 16: a little bit compared to Matter for example. So I

838
00:39:24,280 --> 00:39:28,040
Speaker 16: think for Guidance is going to be massively impressive in

839
00:39:28,280 --> 00:39:31,439
Speaker 16: order to support this valuation. I mean, as we spoke about,

840
00:39:31,480 --> 00:39:33,759
Speaker 16: you know, the evaluation here is what one hundred and

841
00:39:33,840 --> 00:39:36,360
Speaker 16: forty times expected earnings.

842
00:39:36,040 --> 00:39:38,359
Speaker 2: So you know, it really has a lot to live

843
00:39:38,440 --> 00:39:40,280
Speaker 2: up to. And given that we've.

844
00:39:40,120 --> 00:39:44,240
Speaker 16: Seen all these questions about the AI spend capital expenditure,

845
00:39:44,760 --> 00:39:49,360
Speaker 16: what's the monetization. This does mean that investors do actually

846
00:39:49,440 --> 00:39:52,440
Speaker 16: want to see that something's coming through now, And for

847
00:39:52,560 --> 00:39:54,680
Speaker 16: that reason, I think Ford guidance is going to be

848
00:39:54,800 --> 00:39:55,080
Speaker 16: key here.

849
00:39:55,239 --> 00:39:58,000
Speaker 3: Yeah, if anyone can show productivity and articulate what AI

850
00:39:58,160 --> 00:40:01,719
Speaker 3: is doing, palentteer like you do that. Meanwhile, Alphabet's that

851
00:40:02,200 --> 00:40:05,360
Speaker 3: one stop shop, vertically integrated, showing what it can do

852
00:40:05,480 --> 00:40:07,080
Speaker 3: with its own chips, doing what it can do with

853
00:40:07,160 --> 00:40:10,440
Speaker 3: its own tech and hardware and the whole shebang. What

854
00:40:10,520 --> 00:40:12,960
Speaker 3: do you anticipate? Alphabet has had a lot of mood

855
00:40:13,120 --> 00:40:15,279
Speaker 3: music to the positive of late. Will that hold?

856
00:40:16,600 --> 00:40:16,799
Speaker 6: Yeah?

857
00:40:17,000 --> 00:40:18,920
Speaker 16: So, I mean I think this is definitely one of

858
00:40:18,960 --> 00:40:21,319
Speaker 16: the stocks that seems to be in the favored few.

859
00:40:21,680 --> 00:40:24,240
Speaker 16: I mean, if we look at up eight percent across January,

860
00:40:24,400 --> 00:40:27,120
Speaker 16: which is you know, pretty good returns for a tex

861
00:40:27,160 --> 00:40:31,600
Speaker 16: stook in January sixty eight percent year on year. But

862
00:40:31,760 --> 00:40:34,800
Speaker 16: I think, you know, Amazon and again with sorry Alphabet,

863
00:40:34,800 --> 00:40:37,160
Speaker 16: again with Amazon, are going to be very much a

864
00:40:37,200 --> 00:40:39,320
Speaker 16: litmus test as far as that whole sort of you

865
00:40:39,400 --> 00:40:43,480
Speaker 16: know AI theme is concerned. Obviously, with Alphabet, you're looking

866
00:40:43,480 --> 00:40:47,080
Speaker 16: at a four trillion dollar valuation, so you know, investors

867
00:40:47,080 --> 00:40:50,239
Speaker 16: are really going to want to see whether there's momentum

868
00:40:50,440 --> 00:40:54,280
Speaker 16: in that Google Cloud and advertising to support that valuation.

869
00:40:54,880 --> 00:40:57,120
Speaker 16: So you know, focus, as I said, will be on

870
00:40:57,280 --> 00:41:01,320
Speaker 16: that cloud, growth, will be on AI initiatives, monetization of that,

871
00:41:01,680 --> 00:41:03,840
Speaker 16: and also spending. I mean, this is what you know

872
00:41:03,960 --> 00:41:06,200
Speaker 16: the market has been getting very nervous about.

873
00:41:06,320 --> 00:41:08,200
Speaker 2: Is you know, what is that AI spending? What are

874
00:41:08,239 --> 00:41:10,880
Speaker 2: we looking at? How much is it expected to go up?

875
00:41:11,719 --> 00:41:14,000
Speaker 2: And what are the returns on the back of that.

876
00:41:14,680 --> 00:41:17,880
Speaker 3: What's interesting is both Alphabet and Amazon will be a

877
00:41:17,960 --> 00:41:20,320
Speaker 3: bit of a tell fro an in video maybe AMD

878
00:41:20,480 --> 00:41:22,920
Speaker 3: as well, which is coming out beforehand, of how well

879
00:41:23,000 --> 00:41:25,400
Speaker 3: are they producing their own chips? How much does that

880
00:41:25,520 --> 00:41:27,600
Speaker 3: matter to InVideo in the future. I mean, we don't

881
00:41:27,640 --> 00:41:29,759
Speaker 3: get their earnings until later in February is always fearing.

882
00:41:29,920 --> 00:41:35,800
Speaker 3: But do you think semiconductor concerns should be start to

883
00:41:35,880 --> 00:41:38,359
Speaker 3: build in in terms of companies being able to build

884
00:41:38,360 --> 00:41:40,440
Speaker 3: their own and just turning to a broad com for example.

885
00:41:42,160 --> 00:41:45,680
Speaker 16: Yeah, I mean it's definitely a question that's on the

886
00:41:45,760 --> 00:41:47,600
Speaker 16: table and a focus that will be there. And I

887
00:41:47,680 --> 00:41:50,040
Speaker 16: mean if we do see that happening, then obviously that

888
00:41:50,160 --> 00:41:53,480
Speaker 16: will move attention away from Nvidia and that sort of

889
00:41:53,520 --> 00:42:00,239
Speaker 16: you know first to market momentum that that stock had.

890
00:42:00,960 --> 00:42:03,239
Speaker 16: I don't think we're necessarily there yet, but I think

891
00:42:03,280 --> 00:42:06,759
Speaker 16: it is right to expect that to slowly start creeping in.

892
00:42:07,000 --> 00:42:09,839
Speaker 16: So attention will be on that as well, as you said,

893
00:42:09,880 --> 00:42:11,640
Speaker 16: you know, and video not for a little while yet,

894
00:42:11,680 --> 00:42:14,720
Speaker 16: but it's always a massive focus as we get past

895
00:42:14,760 --> 00:42:16,040
Speaker 16: these earnings this week.

896
00:42:16,320 --> 00:42:19,800
Speaker 3: How many calls are you taking also about the private side,

897
00:42:19,960 --> 00:42:22,960
Speaker 3: the question marks around Opening Eyes fundraising and what that

898
00:42:23,080 --> 00:42:26,239
Speaker 3: really means the rest of the ecosystem to your public investors.

899
00:42:26,280 --> 00:42:31,000
Speaker 16: For a moment, it's definitely a question, and it's that

900
00:42:31,200 --> 00:42:33,080
Speaker 16: question that we had, and it was very much a

901
00:42:33,200 --> 00:42:36,759
Speaker 16: concern I think, you know, around October November time, where

902
00:42:36,840 --> 00:42:38,840
Speaker 16: there seemed to be a lot of deals going on

903
00:42:39,120 --> 00:42:41,840
Speaker 16: and there was that sense of all that question is

904
00:42:41,920 --> 00:42:45,640
Speaker 16: this sort of an ecosystem that's growing or is it

905
00:42:45,800 --> 00:42:47,160
Speaker 16: just circular investment?

906
00:42:47,480 --> 00:42:49,720
Speaker 2: And I don't think that was ever really resolved.

907
00:42:49,760 --> 00:42:51,600
Speaker 16: The market does seem to be a little bit calmer

908
00:42:51,600 --> 00:42:54,560
Speaker 16: about those questions for the time being, but I wonder

909
00:42:54,640 --> 00:42:57,640
Speaker 16: if we as we move towards and videos, whether those

910
00:42:57,719 --> 00:43:00,359
Speaker 16: questions will start to appear again, and especially after we've

911
00:43:00,400 --> 00:43:01,120
Speaker 16: had the earnings this.

912
00:43:01,160 --> 00:43:04,719
Speaker 3: Week Piana Sincotter bracing us for a big week at

913
00:43:04,760 --> 00:43:07,160
Speaker 3: City Index Financial Markets. Thanks so much for your time

914
00:43:07,200 --> 00:43:09,320
Speaker 3: as always. Meanwhile, that does it for this edition in

915
00:43:09,360 --> 00:43:11,520
Speaker 3: Bloomberg Tech. Do not forget to check out our podcast

916
00:43:11,719 --> 00:43:14,280
Speaker 3: if I'd on the terminal, as well as online on Apple, Spotify,

917
00:43:14,400 --> 00:43:14,920
Speaker 3: and iHeart.

918
00:43:15,480 --> 00:43:17,799
Speaker 2: From New York. This is Bloomberg Tech.