WEBVTT - Twitter, Musk and Bots, and Peloton's Digital App 0:00:02.240 --> 0:00:05.560 From the heart of where innovation, money and power collive 0:00:06.360 --> 0:00:10.880 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.920 --> 0:00:26.759 Emily Jay. I'm Emily Check in San Francisco, and this 0:00:26.800 --> 0:00:29.640 is Bloomberg Technology. Coming up the next hour. A judge 0:00:29.680 --> 0:00:32.600 tells Twitter to give Elon Musk the data about Box 0:00:32.720 --> 0:00:36.760 that he's been asking for, but also called Musk's requests 0:00:36.960 --> 0:00:41.600 absurdly brought on that in a moment. Plus, Peloton is 0:00:41.680 --> 0:00:45.000 going all in on content after reporting a huge loss 0:00:45.000 --> 0:00:48.360 of struggling brand leading into its digital app, adding new 0:00:48.400 --> 0:00:52.440 subscription tears Tears, including a freemium version. We'll talk about 0:00:52.440 --> 0:00:57.040 the pivot from hardware and gen Z isn't about the 0:00:57.120 --> 0:01:00.320 corporate life half of responding to a new surveys. They're 0:01:00.320 --> 0:01:04.200 trying to make money creating content for social media instead. 0:01:04.560 --> 0:01:08.240 Will it work? We'll discuss all that in a moment, 0:01:08.319 --> 0:01:10.120 but first, let's talk a little bit more about Twitter. 0:01:10.240 --> 0:01:13.960 Now that judge in Delaware telling Twitter they got a 0:01:14.000 --> 0:01:17.000 hand over more information on spam and bots to Elon Musk. 0:01:17.080 --> 0:01:20.360 Here to talk about that. Bloomberg News Alex Barrinka and 0:01:20.800 --> 0:01:24.400 Sarah Fryar. So, Alex, I'll start with you look, the 0:01:24.520 --> 0:01:28.240 judge asking Twitter to hand Musk the data that he's 0:01:28.280 --> 0:01:31.920 been asking for. This is data that uh Musk's camp 0:01:31.920 --> 0:01:34.280 has said Twitter has been hiding, not all of it, 0:01:34.520 --> 0:01:37.399 but some of it. What do we know? Yeah, it 0:01:37.520 --> 0:01:39.399 is some of it. Some of a concession in this 0:01:39.760 --> 0:01:42.800 absurdly broad ask, as the judge called it, Twitter had 0:01:42.840 --> 0:01:46.280 done a survey of nine thousand accounts basically looking to 0:01:46.319 --> 0:01:48.920 see are there humans connected to these accounts or are 0:01:48.920 --> 0:01:53.000 they bought. Initially, the company had not turned this over 0:01:53.040 --> 0:01:56.720 to Elon Musk on a number of concerns, including privacy concerns. 0:01:56.760 --> 0:02:00.120 But this specific like tronche of data is what the 0:02:00.240 --> 0:02:03.400 judge is speaking about, needs to be turned over to Musk, 0:02:03.440 --> 0:02:06.760 which frankly does fall squarely in this argument that he's 0:02:06.840 --> 0:02:10.560 making that he doesn't have enough information yet um to 0:02:10.800 --> 0:02:15.760 say really strongly that Twitter's initial kind of public um 0:02:15.960 --> 0:02:18.880 statements that about five percent of users or boughts must 0:02:18.880 --> 0:02:20.840 says he doesn't have enough data to kind of vet that. 0:02:21.000 --> 0:02:24.280 So this is one concession here that we do see 0:02:24.320 --> 0:02:27.079 the judge kind of forcing Twitter's hand to make sure 0:02:27.160 --> 0:02:30.239 Musk gets a bit more details on on what's happening 0:02:30.240 --> 0:02:33.160 on the platform more broadly. Well, and Sarah, it seems 0:02:33.160 --> 0:02:35.519 like most of the orders from the judge so far 0:02:35.680 --> 0:02:40.520 have gone in Twitter's favor. This one though not. I 0:02:40.600 --> 0:02:43.480 wonder do you make what you make of this? Is 0:02:43.480 --> 0:02:48.079 it a clear negative for Twitter? Well, she's narrowed the 0:02:48.120 --> 0:02:51.360 broad requests to just those nine thousand accounts and wild 0:02:51.360 --> 0:02:53.200 Twitter has said, you know, we can't give over that 0:02:53.280 --> 0:02:56.359 data for privacy reasons and other reasons. Um. I think 0:02:56.400 --> 0:02:59.000 that is that is limited enough that there's it's sort 0:02:59.000 --> 0:03:02.080 of a compromise her for the company. I do think 0:03:02.120 --> 0:03:05.000 it's a small win for Musk, and it shows that 0:03:05.360 --> 0:03:08.320 the judge may in some part think that it's true, 0:03:08.400 --> 0:03:11.519 though he doesn't have enough information to gauge whether that 0:03:11.639 --> 0:03:15.520 five percent number is Box. But let's let's not forget. 0:03:15.560 --> 0:03:17.919 I mean, this is not really a debate about Box, 0:03:18.200 --> 0:03:22.480 debate about whether there's been a materially adverse effect to 0:03:22.520 --> 0:03:26.080 Twitter in its time since Elon must sign that boarded 0:03:26.080 --> 0:03:30.400 four billion contracts to buy Twitter and argue what Twitter 0:03:30.440 --> 0:03:33.440 would argue or is arguing that there has not been 0:03:33.480 --> 0:03:36.440 a major change, not anything that would get Musk out 0:03:36.480 --> 0:03:40.280 of that contract. Um. And so so if the judge 0:03:40.280 --> 0:03:43.080 is asking for this data to be handed over. UM, 0:03:43.120 --> 0:03:46.440 and it could go towards answering that question. UM, but 0:03:46.600 --> 0:03:51.080 I don't know that it will be enough. All right, UM, 0:03:51.200 --> 0:03:53.119 We're gonna continue to follow that. But I also want 0:03:53.160 --> 0:03:58.280 to ask about some changes to Instagram today. Instagram alex 0:03:58.400 --> 0:04:02.400 introducing some new child safety measures. Tell us what these 0:04:02.400 --> 0:04:06.440 measures involves. Yeah, so, UM, they had some measures in 0:04:06.480 --> 0:04:11.280 place for teens think under the age of sixteen, basically 0:04:11.640 --> 0:04:14.200 so that they can have a feed that shows them 0:04:14.640 --> 0:04:18.000 less of content that might be seen as inappropriate for 0:04:18.040 --> 0:04:23.280 those younger users. Think um, sexually explicit content, violence, things 0:04:23.320 --> 0:04:26.680 that are allowed on the app that don't actually violate 0:04:26.720 --> 0:04:30.920 community guidelines but might not be right for that cohort Um. 0:04:31.120 --> 0:04:34.320 The company basically came out and said, UM, they will 0:04:34.480 --> 0:04:37.719 default users under the age of sixteen years old to 0:04:37.800 --> 0:04:40.159 get this kind of less version of the platform that 0:04:40.240 --> 0:04:43.760 excludes them from seeing some of this content. Now, if 0:04:43.800 --> 0:04:47.200 you have been watching and following UM some of Instagram 0:04:47.440 --> 0:04:50.400 and its sister companies Facebook's kind of dust ups in 0:04:50.480 --> 0:04:53.400 d C regarding child privacy, you'll know that this comes 0:04:53.400 --> 0:04:55.760 on the heels from a bit of a flurry of 0:04:55.800 --> 0:04:59.039 activity in d C there's a couple of actions in 0:04:59.080 --> 0:05:02.680 the Senate, a bill and an extension on child privacy 0:05:02.800 --> 0:05:06.720 laws and uh an action in the House basically that 0:05:06.839 --> 0:05:09.799 have taken a step back to look at these platforms 0:05:09.800 --> 0:05:13.360 and say, hey, are we really protecting miners who are 0:05:13.480 --> 0:05:17.000 using the app? Remember, Instagram allows users thirteen years old 0:05:17.080 --> 0:05:19.520 and older on the app, so there are a number 0:05:19.560 --> 0:05:21.840 of years there, um where folks are below the age 0:05:21.839 --> 0:05:24.960 of eighteen on social media and might not be the 0:05:25.080 --> 0:05:27.839 right audience for some more of the explicit content that 0:05:27.839 --> 0:05:30.839 can show up on that platform. Interesting now, Sarah, of 0:05:30.839 --> 0:05:34.440 course you wrote the book on Instagram. Last year the 0:05:34.440 --> 0:05:37.239 company announced this big plan to start Instagram for kids. 0:05:37.240 --> 0:05:40.520 There was a huge public outcry. They put those plans 0:05:40.920 --> 0:05:45.400 on pause. Do you think that project is done or 0:05:45.520 --> 0:05:49.960 or or could they attempt to, um, you know, do 0:05:50.040 --> 0:05:53.159 it again. I think they're taking a lot of the 0:05:53.360 --> 0:05:57.080 ideas that they had for Instagram Kids and applying them 0:05:57.320 --> 0:06:00.359 two teams who are currently on the platform. And and 0:06:00.440 --> 0:06:04.160 let's be clear, I mean although the rule said thirteen 0:06:04.160 --> 0:06:06.760 and up is allowed on Instagram, there are plenty of 0:06:07.240 --> 0:06:10.360 nine and ten year old on on that app. Um. 0:06:10.440 --> 0:06:14.920 That's why Instagram has increased the restrictions around you know, 0:06:15.160 --> 0:06:17.520 asking you about your birthday. A lot of a lot 0:06:17.560 --> 0:06:21.039 of people recently have been asked that question us because 0:06:21.120 --> 0:06:22.719 Instagram is trying to make sure that they block it 0:06:23.040 --> 0:06:25.960 to anyone below thirteen, and they're trying to clean up 0:06:26.000 --> 0:06:28.200 their act and they're trying to improve their reputation. So 0:06:28.240 --> 0:06:30.320 I think that if they do manage to do that, 0:06:31.120 --> 0:06:33.400 you know, nothing's off the table. They will always want 0:06:33.440 --> 0:06:37.719 to expand into new markets, into new demographics and people 0:06:37.720 --> 0:06:41.520 who are are younger than thirteen. Um. Those are the 0:06:41.600 --> 0:06:45.560 kinds of users that are really obsessed with YouTube, really 0:06:45.560 --> 0:06:49.720 obsessed with TikTok, those major competitors of Instagram, that they 0:06:49.720 --> 0:06:52.159 want to figure out how to how to make a 0:06:52.200 --> 0:06:55.039 product for it. And I think social media opens up 0:06:55.080 --> 0:06:58.920 a lot more concerns than a straight entertainment product might 0:06:59.600 --> 0:07:02.560 because of the connections with strangers and the ability for 0:07:02.600 --> 0:07:05.520 your own content to be viewed by the masses um 0:07:05.960 --> 0:07:08.599 in a little bit more explicit way. So I think 0:07:08.640 --> 0:07:12.600 that that they're they're adding this around teams. They had 0:07:12.680 --> 0:07:16.320 parental controls earlier, ways to have a guardian check up 0:07:16.360 --> 0:07:18.240 on your account and know who you're connected to, who 0:07:18.280 --> 0:07:21.280 you're messaging with. All of those are in an effort 0:07:21.320 --> 0:07:25.800 to try to improve that reputation around child safety, So 0:07:25.840 --> 0:07:28.000 that may be down the line they could they could 0:07:28.000 --> 0:07:32.160 take that extra step and bring the kids product back. Meantime, 0:07:32.200 --> 0:07:35.240 you've got this new survey out that younger people gen Z, 0:07:35.720 --> 0:07:38.720 you know, ditching corporate jobs are not taking them at 0:07:38.760 --> 0:07:42.160 all because they hope to make a career creating content 0:07:43.040 --> 0:07:48.520 on social media. Alex, how realistic is it? Obviously we 0:07:48.600 --> 0:07:52.120 know that you know, social media influencers, they can make 0:07:52.680 --> 0:07:56.000 a lot of money. Um, this is obviously an evolving 0:07:56.480 --> 0:08:00.000 business that's still likely and it's very early stages. UM. 0:08:00.040 --> 0:08:04.680 Tell us more about this survey and what it tells us. Yeah, 0:08:04.960 --> 0:08:07.800 the service survey tells us basically that this younger generation 0:08:07.920 --> 0:08:10.920 gen Z does really want to, like you said, half 0:08:10.960 --> 0:08:13.600 of them, UM, think about a job outside of the 0:08:13.680 --> 0:08:16.320 kind of run of the mill job making money off 0:08:16.320 --> 0:08:20.320 of social Now. The caveat here is influencers on social 0:08:20.360 --> 0:08:23.760 from the platforms themselves aren't making a ton of money. 0:08:23.760 --> 0:08:27.880 It's about building your following, UM, connecting with sponsors, getting sponsorships, 0:08:28.080 --> 0:08:31.560 and leveraging that following to make money off the platform. 0:08:31.600 --> 0:08:35.040 The survey basically broke down some of the numbers and 0:08:35.120 --> 0:08:38.320 showed that, you know, while there might be a benefit 0:08:38.360 --> 0:08:41.120 to this flexible work environment, you are your own Boston, 0:08:41.120 --> 0:08:44.480 you need to hustle. Only twelve percent of these participants 0:08:44.520 --> 0:08:48.079 surveyed are actually making more than fifty thou dollars a year, 0:08:48.240 --> 0:08:50.160 which if you live in a place like New York, 0:08:50.200 --> 0:08:53.360 where a lot of these creators are, that's actually below 0:08:53.720 --> 0:08:57.760 the median income. So folks are hustling. Um. It's also 0:08:57.840 --> 0:09:00.319 probably why you know, some of these younger, Aden says, 0:09:00.320 --> 0:09:02.240 are looking to get on social earlier and build those 0:09:02.280 --> 0:09:06.280 followings if they have aspirations to turn this into a career. 0:09:06.679 --> 0:09:10.360 But also it's not easy. You see the big success stories, 0:09:10.920 --> 0:09:13.160 but what you don't see are the folks who are 0:09:13.280 --> 0:09:16.040 on social kind of as a side hustle or kind 0:09:16.040 --> 0:09:17.840 of really leaning in to turn it to a full 0:09:17.840 --> 0:09:20.360 time job because you know, they are their own boss. 0:09:20.600 --> 0:09:23.720 Nothing's guaranteed, and it is one of those industries you know, 0:09:23.760 --> 0:09:25.400 where you get out of it as much as you 0:09:25.960 --> 0:09:28.920 put in. UM. So you know, we'll see if gen 0:09:29.040 --> 0:09:30.960 Z can turn this into the next big economy. But 0:09:31.000 --> 0:09:33.640 there are certainly a lot of folks with aspirations to 0:09:33.880 --> 0:09:38.040 make social media their career path. Well, let's talk about 0:09:38.080 --> 0:09:41.199 that side hustle part of it, because there's this whole 0:09:41.440 --> 0:09:46.520 theme right now quiet quitting, where people are talking about 0:09:46.640 --> 0:09:50.360 just doing the bare minimum at their jobs, not going 0:09:50.400 --> 0:09:55.679 above and beyond, trying to maintain a healthy work life balance. Um, Sarah, 0:09:55.720 --> 0:09:57.640 how realistic is it that some of these folks could 0:09:57.840 --> 0:10:00.920 you know, make some extra cash if you know that 0:10:00.960 --> 0:10:04.160 time that they're not spending going above and beyond at 0:10:04.200 --> 0:10:09.000 their corporate jobs, but making really cool TikTok's listen, and 0:10:09.080 --> 0:10:13.320 I've talked to to teens gen D folks who are 0:10:13.360 --> 0:10:16.599 now in the workforce who are using Instagram and YouTube 0:10:16.720 --> 0:10:20.200 alongside their jobs. You know, they have that their personal account, 0:10:20.200 --> 0:10:22.400 and then they might have a more professional account, or 0:10:22.480 --> 0:10:25.240 they might have um one that's focused on fashion or 0:10:25.280 --> 0:10:28.800 food or their pets or home debt, or because they 0:10:28.880 --> 0:10:32.840 want to try something um as a as a you know, 0:10:33.600 --> 0:10:37.240 creative pursued a hobby that in the back of their minds, 0:10:37.280 --> 0:10:40.200 they're thinking, this could be a fallback plan if my 0:10:40.280 --> 0:10:42.439 career doesn't work out or if this becomes you know, 0:10:42.440 --> 0:10:44.760 wouldn't it be nice to be paid to travel the world. 0:10:44.800 --> 0:10:47.959 Wouldn't it be nice to be paid to go to restaurants? 0:10:48.960 --> 0:10:53.000 Only a select few people end up getting the level 0:10:53.000 --> 0:10:55.080 of income that you would need to to really be 0:10:55.559 --> 0:10:57.800 micro famous. And then then, like Alex said, you really 0:10:57.840 --> 0:11:00.480 got to keep it up. There's a lot of consistency involved. 0:11:00.559 --> 0:11:03.440 There's a lot of reinventing yourself involved. If you're on Instagram, 0:11:03.480 --> 0:11:06.920 for example, and you've been post posting great photography, now 0:11:06.920 --> 0:11:09.200 they want you to make short form video, so you 0:11:09.240 --> 0:11:13.680 have to be really consistent and and um, you can't 0:11:13.760 --> 0:11:17.400 quiet quit if you're working for yourself. So so I do. 0:11:17.480 --> 0:11:20.200 I do see it as a side hustle thing, something 0:11:20.240 --> 0:11:22.360 that kids are doing in college, or I should say 0:11:22.360 --> 0:11:26.720 adults are doing in college alongside their other work and 0:11:26.920 --> 0:11:30.480 hoping that it can help pay the bills. Um if 0:11:30.480 --> 0:11:33.360 they if they get the block of the draw. But 0:11:33.440 --> 0:11:36.400 I think that that's pretty rare. Um. It's just a 0:11:36.440 --> 0:11:39.520 general aspiration that people have, all Right, well, we're gonna 0:11:39.600 --> 0:11:43.920 let you go uh and uh do some other things 0:11:43.920 --> 0:11:47.480 with your time. Gloober Sarah Bryar and Alex Barenka, thank 0:11:47.520 --> 0:11:50.680 you both. We'll be right back. This is a little 0:11:50.679 --> 0:12:02.800 bit peloton shares are reeling from a one point to 0:12:03.120 --> 0:12:07.439 billion dollar loss, but CEO Barry McCarthy says naysayers are 0:12:07.760 --> 0:12:11.199 looking at it all wrong. Shares jump this week when 0:12:11.240 --> 0:12:14.480 Peloton announced its new partnership with Amazon, that game all 0:12:14.480 --> 0:12:18.079 but wiped out today McCarthy that was optimistic. He says, 0:12:18.240 --> 0:12:21.800 what I see is significant progress driving our comeback and 0:12:21.880 --> 0:12:25.120 Peloton's long term resilience. For more on that, I want 0:12:25.120 --> 0:12:27.640 to bring in row Hit called Carney, managing director at 0:12:27.760 --> 0:12:31.800 MKM Partners, the worst stock plunge in seven months? Uh 0:12:31.960 --> 0:12:36.360 is it warranted again? Thanks for having me, Emily. Not 0:12:36.520 --> 0:12:39.319 many things to cheer about in today's filing is and 0:12:39.520 --> 0:12:44.600 they have consistently underperformed the guidance. They have consistently underperformed 0:12:44.600 --> 0:12:47.640 that expectations. I think fourth quarter in a row we 0:12:47.679 --> 0:12:52.120 are seeing them coming low below our expectations and lowering 0:12:52.120 --> 0:12:55.400 the guidance. So we don't know yet where the demand 0:12:56.320 --> 0:13:00.120 is going to essentially stabilize, So I think, yeah, to 0:13:00.240 --> 0:13:03.520 CEO's credit, they are moving fast. They're showing a lot 0:13:03.520 --> 0:13:07.760 of velocity of execution, but the market is moving against them. 0:13:08.120 --> 0:13:11.920 The demand curve is slipping very very quickly, very far 0:13:11.960 --> 0:13:16.560 away from them. So how hopeful are you about Barry 0:13:16.640 --> 0:13:21.200 McCarthy and the possibility of a turnaround. Um in terms 0:13:21.240 --> 0:13:25.120 of the what they're doing, whether they can get the 0:13:25.200 --> 0:13:28.520 results that they hope to get is still probably six 0:13:28.559 --> 0:13:30.559 maybe twelve months out, so there needs to be some 0:13:30.600 --> 0:13:33.920 patients while during that time, we hope to have some 0:13:34.520 --> 0:13:38.200 stability of how in a post pandemic world, in a 0:13:38.240 --> 0:13:42.160 post procession world, in a high inflation world, how people 0:13:42.280 --> 0:13:45.199 view a high end product like Peloton and its place 0:13:45.280 --> 0:13:48.000 in the consumer discretion he spent. So that's the big unknown. 0:13:48.080 --> 0:13:51.600 But what they can control is are a lot of things, 0:13:51.640 --> 0:13:54.800 and they're loading prices that they're playing around with some 0:13:54.880 --> 0:13:59.560 consumer options like renting fitness as a service. They're going 0:13:59.600 --> 0:14:02.360 to am is on and more retailers to try to 0:14:02.400 --> 0:14:04.920 get a broader audience. So they're doing a lot of things. 0:14:05.160 --> 0:14:08.160 But as as you know, we are in a very 0:14:08.280 --> 0:14:13.080 very unusual point in macro cycle, so that is hurting 0:14:13.120 --> 0:14:15.680 them a lot more than what Barry McCarthy and his 0:14:15.760 --> 0:14:18.800 team hopes to achieve in a short time. What do 0:14:18.840 --> 0:14:23.080 you think of this pivot away from hardware to you know, 0:14:23.400 --> 0:14:28.520 offering some premium classes for example, how much could that help. Um, 0:14:28.520 --> 0:14:30.760 that is helping, but again, as I said, that is 0:14:30.960 --> 0:14:34.440 that is opening up their kind of user base to 0:14:34.680 --> 0:14:38.160 people who are extremely price sensitive. As if you were 0:14:39.120 --> 0:14:41.200 not willing to buy a bite which is worth two 0:14:41.560 --> 0:14:45.160 dollars or fifteen dollars right now, probably you could rent 0:14:45.240 --> 0:14:49.720 it for a few months and uh and see how 0:14:49.760 --> 0:14:51.920 things go, and then of three to four months, if 0:14:51.960 --> 0:14:54.680 you feel like using it more, you could bite or 0:14:54.720 --> 0:14:58.400 you could continue to pay per month. So there is 0:14:58.440 --> 0:15:01.800 a certain cohort of users who may be willing to 0:15:02.240 --> 0:15:05.440 try that out. And that's still very early days. So 0:15:05.480 --> 0:15:07.680 there needs to be a full kind of two directional 0:15:08.080 --> 0:15:10.280 logistics network they need to set up, They need to 0:15:10.320 --> 0:15:13.600 have inventory to be able to fulfill such a demand. 0:15:13.720 --> 0:15:16.640 So it is a good experiment. There is good success 0:15:16.680 --> 0:15:19.640 so far, but that's exactly it's an experiment. It's still 0:15:19.720 --> 0:15:22.400 very early days and those experiments, they are doing a 0:15:22.400 --> 0:15:25.240 lot of those, and I feel encouraged by that. But 0:15:25.400 --> 0:15:28.880 as as I said, like the broader ship, the cargo 0:15:28.960 --> 0:15:31.560 ship that Barry McCarthy talks about in the letter, it's 0:15:31.640 --> 0:15:33.960 very slow to turn around, and still we are not 0:15:34.000 --> 0:15:36.960 seeing that from the outside. The effort that they're putting 0:15:37.000 --> 0:15:40.960 in all right, lots to continue to follow. Hit called 0:15:41.000 --> 0:15:51.640 Carney MKM partners managing director Row Hit, thanks for stopping by. 0:15:53.800 --> 0:15:56.760 Amazon is getting greener and leaner the e commerce and 0:15:56.800 --> 0:16:00.880 Claude John announcing a partnership with the electronic equipment maker 0:16:01.440 --> 0:16:04.960 plug Power to cut fossil fuel use. Amazon is aiming 0:16:04.960 --> 0:16:08.520 to hitting at zero carbon emissions. And earlier this week, 0:16:08.640 --> 0:16:12.400 Amazon announced it'll wind down its telehealth service just weeks 0:16:12.440 --> 0:16:15.680 after buying One Medical for three and a half billion dollars. 0:16:15.720 --> 0:16:18.240 Let's bring in Bloombox Spencer Soaper who covers Amazon for us. 0:16:18.240 --> 0:16:20.600 So what do you make of this latest twist in 0:16:20.600 --> 0:16:23.960 the Amazon health story. What does it mean in the 0:16:23.960 --> 0:16:28.040 context of the One Medical acquisition. Yeah, it does look 0:16:28.080 --> 0:16:30.880 like there's a there's a lot of overlap between what 0:16:31.680 --> 0:16:35.960 One Medical provides and what Amazon Care was doing. And 0:16:36.080 --> 0:16:39.640 One Medical is just, you know, significantly ahead of Amazon 0:16:39.720 --> 0:16:42.000 Care in terms of its footprint and its customer base. 0:16:42.080 --> 0:16:46.320 And that's so uh. And then but the only brick 0:16:46.360 --> 0:16:50.280 froms Amazon really dropped about why it is shuddering Amazon 0:16:50.360 --> 0:16:53.640 Care is they said that it's not robust enough that 0:16:53.680 --> 0:16:56.160 as they as they tried to get this service out, 0:16:56.160 --> 0:16:59.360 this primary care medical service that they're trying to target 0:16:59.360 --> 0:17:02.400 other business is you know, to buy it on behalf 0:17:02.440 --> 0:17:06.119 of their own employees for um that they basically couldn't 0:17:06.119 --> 0:17:07.800 sell it, you know that that it didn't have a 0:17:07.880 --> 0:17:11.040 robust enough offering. So it sounds like Amazon's coming back 0:17:11.040 --> 0:17:13.760 to the drawing board and whatever it does with one 0:17:13.840 --> 0:17:17.120 medical that's going to have to go above them beyond this, 0:17:17.240 --> 0:17:20.960 uh this Amazon care service which is fairly limited. Okay, 0:17:20.960 --> 0:17:23.840 so talk to us about this development in Amazon's push 0:17:24.000 --> 0:17:29.640 too e green or how significant is it? I mean, 0:17:29.640 --> 0:17:31.400 it's a it's a big deal and a big commitment 0:17:31.440 --> 0:17:35.159 in in to the extent of the amount of energy 0:17:35.200 --> 0:17:38.520 that they'll be purchasing. You know, there's eleven thousand uh 0:17:38.560 --> 0:17:42.960 tons a year beginning in is basically the entire production 0:17:43.000 --> 0:17:46.600 of one plant of plug power. Plug power uses wind 0:17:46.640 --> 0:17:50.320 and solar energy to create hydrogen which will then be 0:17:50.400 --> 0:17:52.960 used as a fuel. So it's it's it's a very 0:17:53.000 --> 0:17:56.720 streamline green process trying to have no emissions throughout, and 0:17:56.760 --> 0:17:59.080 then that amount of fuel will run tens of thousands 0:17:59.080 --> 0:18:03.440 of forklifts and amas on operation, hundreds of trucks, So 0:18:03.560 --> 0:18:06.199 it's A. It's a it's a significant step and a 0:18:06.240 --> 0:18:10.840 big boost for for hydrogen is a clean power source. Um, 0:18:11.200 --> 0:18:14.520 but it's still you know, Amazon's carbon emissions have still 0:18:14.560 --> 0:18:17.040 been going the wrong way, especially after the pandemic. It 0:18:17.119 --> 0:18:19.679 made this big pledge, but then all the pandemic demand, 0:18:19.720 --> 0:18:22.840 It's It's carbon emissions still went up significantly by like, 0:18:24.119 --> 0:18:25.840 so it's it's got a lot of work left to 0:18:25.840 --> 0:18:29.200 do yet, granted it's got till to do it. How 0:18:29.240 --> 0:18:34.359 optimistic are you that Amazon hits that goal? I don't know. 0:18:34.440 --> 0:18:36.680 I mean, there's so much there's so much time between 0:18:36.840 --> 0:18:40.080 between now and then, and who knows you know, what 0:18:40.240 --> 0:18:43.359 form uh e commerce will will be at that time 0:18:43.359 --> 0:18:45.720 and delivery and that sort of thing. But there's there's 0:18:45.760 --> 0:18:50.240 certainly a lot of time left for them to uh 0:18:50.480 --> 0:18:56.080 develop alternatives. Okay, bloowork Spencer soaper update from Seattle. Thank 0:18:56.119 --> 0:19:08.040 you Spencer for joining us. The iPhone fourteen is only 0:19:08.080 --> 0:19:10.960 a couple of weeks away. Apples planning to announce the 0:19:10.960 --> 0:19:13.760 new device on September seven and put it on sale 0:19:13.840 --> 0:19:17.040 on September sixteen. The new phone will continue to come 0:19:17.040 --> 0:19:20.600 in four models, two pro versions and two standard versions, 0:19:20.600 --> 0:19:23.720 but Apple's replacing the iPhone thirteen Mini with the new 0:19:23.840 --> 0:19:27.720 iPhone fourteen Max that will give Apple a standard iPhone 0:19:27.840 --> 0:19:30.280 with a big six point seven inch display for the 0:19:30.320 --> 0:19:33.119 first time. The new pro phones will have a forty 0:19:33.160 --> 0:19:35.840 a megapixel camera on the back for the wide angle lens, 0:19:36.320 --> 0:19:39.920 thinner bezels around the display, and a faster A sixteen processor. 0:19:40.440 --> 0:19:42.800 The biggest design change will be to the front camera. 0:19:43.160 --> 0:19:45.320 The notch will be replaced with a whole punch sized 0:19:45.359 --> 0:19:48.879 cutout for FaceTime and selfies, and a pill shaped cutout 0:19:48.880 --> 0:19:51.639 will come in for face I D. The Pro models 0:19:51.640 --> 0:19:54.560 will also have enhanced finer recording and better battery life. 0:19:55.359 --> 0:19:57.760 The new phones are launching about a week earlier than usual, 0:19:58.160 --> 0:20:00.879 giving Apple an extra chunk of sale for its fourth quarter. 0:20:01.600 --> 0:20:05.160 Beyond the iPhone fourteen, Apples planning to announce an update 0:20:05.200 --> 0:20:08.480 to the Apple Watch sc with a faster processor, an 0:20:08.480 --> 0:20:11.760 Apple Watch Series eight with a body temperature sensor, and 0:20:11.840 --> 0:20:14.560 its first Apple Watch Pro that will have a more 0:20:14.640 --> 0:20:18.720 rugged design in a larger display. Later this year, Apple's 0:20:18.760 --> 0:20:21.800 aiming to announce revamps to the iPad Pro and the 0:20:21.920 --> 0:20:25.080 entry level iPad in addition to new Max with M 0:20:25.160 --> 0:20:28.800 two Pro and M two max based chips. I'm Mark Erman. 0:20:29.200 --> 0:20:35.040 This is power On. You can subscribe to Mark's weekly 0:20:35.040 --> 0:20:39.000 power On newsletter at Bloomberg dot com. Let's get back 0:20:39.040 --> 0:20:41.880 to the markets and take a temperature of the private 0:20:41.920 --> 0:20:44.560 markets ahead of FET Chair J. Pal's big speech this week. 0:20:44.840 --> 0:20:47.280 Lots of questions about how much further the government will 0:20:47.320 --> 0:20:51.440 go to tamp down inflation. How are vcs watching it all? 0:20:51.520 --> 0:20:56.199 Let's discuss with Andrea Walney, general partner at Manhattan Venture Partners. Andrea, 0:20:56.280 --> 0:20:59.359 great to have you back with us. So curious what 0:21:00.359 --> 0:21:04.000 Chair J. Powe could say that would change things for 0:21:04.200 --> 0:21:08.840 venture capitalists. Well, thanks, Emily. So I would say overall, 0:21:08.880 --> 0:21:12.000 what we're all really eager to see is what the 0:21:12.040 --> 0:21:14.679 impact on the soaring inflation is going to do for 0:21:14.720 --> 0:21:17.480 all of us. And generally, I think we're all looking 0:21:17.520 --> 0:21:22.399 at the outlook of unemployment reaching absolutely five decade lows 0:21:22.440 --> 0:21:25.560 and generally what does this mean for interest rates when 0:21:25.600 --> 0:21:28.399 they've really just been hovering it near zero for so long? 0:21:28.480 --> 0:21:31.119 And I think we're all just taking a pulse on 0:21:31.240 --> 0:21:34.959 what this employment environment is going to look like going forward. 0:21:35.280 --> 0:21:39.600 So startups are trying to hire, well exactly, So let's 0:21:39.640 --> 0:21:42.080 say you know, the FED says we're going to take 0:21:42.119 --> 0:21:45.119 more steps to tamp down inflation. Would would you do 0:21:45.160 --> 0:21:49.919 anything differently? Would you advise your portfolio companies differently? I 0:21:49.960 --> 0:21:53.119 think everyone's just trying to reduce spend continuously emily so 0:21:53.160 --> 0:21:55.040 that they end the year really strong. I know, we 0:21:55.119 --> 0:21:57.160 really just kicked off the second half of the year 0:21:57.240 --> 0:22:01.320 going into Q three, and so generally, I every startup 0:22:01.359 --> 0:22:04.080 in the market right now is still got that hiring 0:22:04.160 --> 0:22:07.520 freeze going on, and really they're kind of eyeing the 0:22:07.600 --> 0:22:09.560 end of the year and saying, well, how do we 0:22:09.680 --> 0:22:12.680 keep retaining talent? How do we keep ensharing that everyone's 0:22:12.680 --> 0:22:16.480 incentivized while really you know, increasing the workload on everyone, 0:22:16.720 --> 0:22:21.919 while hiring is still more or less still at a standstill. So, 0:22:22.640 --> 0:22:26.280 you know, are are your portfolio companies then thinking about 0:22:26.440 --> 0:22:32.560 doing more layoffs? Is this environment continues? Some of them are, 0:22:32.680 --> 0:22:35.240 some of them are. I think generally, going into the 0:22:35.280 --> 0:22:37.560 start of this past year, a lot of the late 0:22:37.640 --> 0:22:41.800 stage startups at least had big aspirations for big hiring plans, 0:22:42.040 --> 0:22:45.160 and so generally they are still looking to keep reducing 0:22:45.200 --> 0:22:48.560 spend across the board. With that said, I think the 0:22:48.680 --> 0:22:52.240 hiring is still at a standstill. They're not really targeting 0:22:52.359 --> 0:22:56.480 an increase in budgeting and keeping things really tight, and 0:22:56.520 --> 0:22:59.080 I think a lot of startups are changing course around 0:22:59.080 --> 0:23:02.200 their narrative, around their forecast going into the second half 0:23:02.200 --> 0:23:06.640 of this season. Is it changing your investment strategy at all? 0:23:06.680 --> 0:23:09.760 I mean, are you pushing for lower valuations? Are you 0:23:10.440 --> 0:23:13.800 reducing the amount that you would put into a single company? 0:23:13.880 --> 0:23:18.320 Do you as an investor have more power because uh, 0:23:18.720 --> 0:23:21.680 you know, times are tough for some of these companies. 0:23:22.640 --> 0:23:25.160 We really are seeing a big shift, and our investment 0:23:25.200 --> 0:23:27.920 strategy remains the same. So a man hand venture Partners, 0:23:27.960 --> 0:23:29.600 we are looking at late stage companies that are in 0:23:29.640 --> 0:23:33.119 the top decile of their sector. They are a category leader, 0:23:33.320 --> 0:23:36.520