Speaker 1: From Mahard where Innovation, Money and Power Collie in Silicon Valley, NBN.
Speaker 1: This is Bloomberg Technology with Caroline Hyde and.
Speaker 2: Ed lud Love.
Speaker 3: And Caroline Hyde in San Francisco. Ed Lulow is off.
Speaker 3: This is Bloomberg Technology coming up the US set to
Speaker 3: unveil sweeping tarras on China targeting EVS, batteries and more
Speaker 3: details ahead. Plus we'll sit down with the CEOs of
Speaker 3: Grinder of Akamai to break down their latest earnings results
Speaker 3: and Apple apologizing for its latest ad after the online backlash.
Speaker 3: We'll discuss that and so much more throughout this hour. First,
Speaker 3: it's going to quick check on these markets and look,
Speaker 3: it is three straight weeks of games, folks. That is
Speaker 3: the best winning street we've seen since back in February.
Speaker 3: But on the day, we're actually just pulling back a little,
Speaker 3: only two percent on the NASDAK. Some mixed economic data
Speaker 3: coming through, in particular some of the confidence consumer confidence
Speaker 3: actually falling quite significantly in the previous month. That because
Speaker 3: of lingering inflationary issues, labor side concerns. But nevertheless we're
Speaker 3: down some two tens percent. But the sock six hundred
Speaker 3: over in Europe on a tear are up eight tens
Speaker 3: ofven percent, and in fact we are have just a
Speaker 3: real run of good gains in Europe as we see
Speaker 3: earnings beat time after time, every single industry group up
Speaker 3: to finish the day over in Europe. Bitcoin echoing some
Speaker 3: of that slight risker version, but notably we're also seeing
Speaker 3: well the first time you're seeing crypto exchange volume are
Speaker 3: actually falling in about seven months. So post bitcoin etf
Speaker 3: slight pullback, slight reality bump, we're off by two point
Speaker 3: six percent. Move on, have a look at some of
Speaker 3: the individual movers that we're looking on the micro perspective,
Speaker 3: and Warner brother Discovery actually your best performer when you're
Speaker 3: looking at the Nasdaq one hundred at more than three percent. Yesterday,
Speaker 3: Lucashaw breaking the news that David Saslav is looking to
Speaker 3: control costs here once again. Maybe even more job cuts come.
Speaker 3: Remember they've already fired some two thousand people. We could
Speaker 3: see a real focus on ultimately profitability at the moment.
Speaker 3: For Warner Brothers Discovery, we're seeing actually Apple off by
Speaker 3: more than a percentage point. That we'll get into the
Speaker 3: woes that is the pulling of the ad when it
Speaker 3: comes to the iPad that's seemingly crushing of ingenuity and
Speaker 3: human expression, suddenly not being liked. Apple apologizes we were
Speaker 3: down a percentage point. Tesla also down two point three
Speaker 3: percent earlier. I've been training higher. Now Is this something
Speaker 3: to do with the fact that now we've got a
Speaker 3: flip reverse on what Elon Musk is currently doing with superchargers. Yes,
Speaker 3: he is going to be selling focusing on some five
Speaker 3: hundred million dollars of investment in that area, swift reversal
Speaker 3: from what we'd heard the previous week, the fact that
Speaker 3: he was of course firing the entire team of the superchargers.
Speaker 3: But also is this more to do with geopolitics? Is
Speaker 3: this more to do with the fact that the Biden
Speaker 3: administration is potentially set to unveil a sweeping decision on
Speaker 3: China tarras next week, targeting key industries, including of for
Speaker 3: Tesla's perspective, electric vehicles and batteries and solar cells. Would
Speaker 3: that mean we get Chinese backlack on US producers such
Speaker 3: as Tesla joining US and Wall Bloomberg's Mike Shephard, who's
Speaker 3: in Washington, and my incredible reporting coming from the team
Speaker 3: at Bloomberg, and it does seem that what this is
Speaker 3: finally after years of decision, more focus on China and
Speaker 3: a targeted manner.
Speaker 4: Well, it certainly is, and I'm glad you brought it
Speaker 4: up in that context. The team did such a terrific
Speaker 4: job really going after this for weeks and weeks to
Speaker 4: try to figure out when and in what manner this
Speaker 4: decision would take place and how it would hit. And
Speaker 4: it is really shaping up in those three areas that
Speaker 4: you outlined. This is going to be one of the
Speaker 4: most significant moves that Biden has made since taking office
Speaker 4: with respect to China. It is one of the most
Speaker 4: consequential because it affects that big round of tariffs that
Speaker 4: Donald Trump announced back in twenty eighteen, and that has
Speaker 4: been the subject of a lot of back and forth
Speaker 4: with the world's second largest economy since then.
Speaker 3: Therefore, are we expecting more back and forth? Are we
Speaker 3: bracing ourselves to the fact that if this comes that
Speaker 3: this does indeed target more of the evs, the solar
Speaker 3: anity We've already seen some focus on metals, even though
Speaker 3: then have a broad implication. Are we going to have
Speaker 3: more tip for tat here is China going.
Speaker 4: To respond, Well, China respond to this morning at least
Speaker 4: with a verbal volley objecting to this. You'll recall that,
Speaker 4: you know, with the emergence of news about the export
Speaker 4: controls aimed against Huahwei, that they saw that as economic coercion.
Speaker 4: They're complaining about this as well. The response to the
Speaker 4: news last night was swift from the Chinese government.
Speaker 1: They're concerned.
Speaker 4: However, the retaliation from China may not come in the
Speaker 4: areas that are directly aligned with the policy that we're seeing,
Speaker 4: and we'll expect next week. Senator Chuck Grassley, according to
Speaker 4: our reporting, is indicating that we may see a retaliation
Speaker 4: in agricultural products, trying to hit America where it hurts
Speaker 4: a different place, and it's something that in the past
Speaker 4: has been targeted by Beijing.
Speaker 3: Just to stay with us, Mike, we've got some breaking
Speaker 3: news this being reported by the Wall Street Journal. So
Speaker 3: building on the Bloomberg reporting that apparently min administration is
Speaker 3: actually going to quadruple tariffs on Chinese evs. Now, how
Speaker 3: broader implication is that, considering not many electric vehicles are
Speaker 3: actually shipped from China to the United States.
Speaker 4: Well, you're right, and the whole idea of this, at
Speaker 4: least with EVS is it's symbolic in a way, it's
Speaker 4: low cost for the Biden administration to quadruple EVS because
Speaker 4: there is no consumer impact at home. Remember, when you
Speaker 4: raise tariffs, it is not the country that is targeted
Speaker 4: with the tariffs that pays the cost. It is actually
Speaker 4: the consumers in the purchasing country that actually pay the price,
Speaker 4: and in this case there are. China does not have
Speaker 4: much of an ev market presence here in the US
Speaker 4: with its makers, So the administration is trying to do
Speaker 4: two things. It's trying to show that it's tough without
Speaker 4: imposing too much cost, but it is also trying to
Speaker 4: create a bullwark so that it is harder for Chinese
Speaker 4: makers to break into the US market, which is becoming
Speaker 4: increasingly amenable to the idea of EVS.
Speaker 3: We'll see also what Europe does. We know that Europe
Speaker 3: has been focusing a lot on EVS when it comes
Speaker 3: to China as well. Mike Shepherd bring in to have you,
Speaker 3: thank you so much on the latest when it comes
Speaker 3: to tariffs. Now, all of this, well is the context
Speaker 3: with which you're trying to invest more broadly across assets
Speaker 3: At the moment, the geopolitics is a key headwind. Let's
Speaker 3: dive into that and the impact on equities in tech
Speaker 3: in particular with Mona Mahazan. She's senior investment strategist to
Speaker 3: Edward Jones. And once again we're just Monas seeing more
Speaker 3: and more navigation necessary by big tech companies of geopolitics.
Speaker 3: Is that an overhang for you? Yeah?
Speaker 5: Thanks, Carolyn, It's a great question. Look, I think as
Speaker 5: we get closer and closer at election time period, we
Speaker 5: will be hearing more and more about the policies that
Speaker 5: both sides of the aisle will be proposing, and a
Speaker 5: lot of times what we see is the impact is
Speaker 5: felt in an outside way way in certain sectors, and
Speaker 5: technology is certainly one of them. I'd point to healthcare
Speaker 5: as another, depending on regulation and policy that's administered. Higher taxes,
Speaker 5: as was noted earlier, higher tariffs taxes in general does
Speaker 5: tend to be inflationary, so we have to think about that.
Speaker 5: Will the administration want to take that step or is
Speaker 5: this more symbolic in nature in that we don't want
Speaker 5: to one enter a more meaningful trade war with China,
Speaker 5: but two we want to signal to them that they
Speaker 5: cannot be flooding the market, whether it's EVS or any
Speaker 5: other end market or good that they may be trying
Speaker 5: to get into into the US. So keep in mind
Speaker 5: some of it is signaling, some of it has real
Speaker 5: meaningful implications for areas like technology. But we will get
Speaker 5: more and more insight into how these policies manfold. I
Speaker 5: think as we get closer to the November time period,
Speaker 5: I'd say more broadly, we are looking at a market
Speaker 5: that has been driven still by the momentum behind AI
Speaker 5: and tech anology and megacap technology in particular, But we
Speaker 5: do expect that to broaden over time.
Speaker 3: And can that broadening with stan still issues you mentioned
Speaker 3: infrastory pressure coming from Taris. Infrastry pressure is still something
Speaker 3: that the FED is still very focused on. We're hearing
Speaker 3: from many a FED member at the moment saying we're
Speaker 3: going to be higher for longer. We see the stocks
Speaker 3: just take a little bit of a dip on the
Speaker 3: back of that context, Mona, are you expecting inflatory headwinds
Speaker 3: to limit some of the increase in the stock markets
Speaker 3: from here?
Speaker 5: You know, Actually we are in the Jerome Powell camp,
Speaker 5: who he did outline. You know, he had the famous
Speaker 5: line he doesn't see the stag and he doesn't see
Speaker 5: the flation. We are also of the mindset that we
Speaker 5: do think inflation can gradually, perhaps not in a straight line,
Speaker 5: but gradually move more meaningfully towards at two percent target.
Speaker 5: For a couple of reasons. One, we do see that
Speaker 5: shelter and rent component playing some catch up. We are
Speaker 5: seeing the data in real time if you look at
Speaker 5: a ZILLA rent index move meaningfully lower. That has not
Speaker 5: yet showed up in any of the CPI baskets, And
Speaker 5: even the PC basket, which is a lower part has
Speaker 5: a lower exposure to shelter and rent still hasn't moved
Speaker 5: meaningfully lower, So we think that's coming. Number two, we
Speaker 5: are starting to see more meaningful potential slowdown in the
Speaker 5: wage gains component of the labor market. So labor market
Speaker 5: a couple of early signals of softening, not only the
Speaker 5: non farm jobs are poured on Friday, but also the
Speaker 5: jobless claims figure this week was elevated. We think over
Speaker 5: time there'll be better balanced in the labor force, more
Speaker 5: supply coming in, less demand for jobs, which will lead
Speaker 5: to softer wage gains, which has a direct implication on
Speaker 5: services inflation. So a combination of shelter and rent and
Speaker 5: a softening labor market we think will lead to better
Speaker 5: inflationary trends going forward.
Speaker 3: That, combined with.
Speaker 5: This earnings growth picture that we are seeing continuing to
Speaker 5: outperform and improve meaningfully, we think is a good headwind
Speaker 5: or sorry, tailwind for equities broadly.
Speaker 3: Interestingly, here in San Francisco, the one key thing that
Speaker 3: comes up time and time again is how expensive engineers are.
Speaker 3: Whether it's particularly in the field of AI, software developers
Speaker 3: a little bit less but still arguably about a million
Speaker 3: in terms of their overall pay at the moment. Mona,
Speaker 3: I'm interested in what you make there for of AI,
Speaker 3: the tailwinds of AI more broadly, are we going to
Speaker 3: see you mentioned the broadening out which industry groups in
Speaker 3: particular is the healthcare industry groups that we start to
Speaker 3: pile into.
Speaker 5: Yeah, you know, it's a great point because thus far,
Speaker 5: what we've seen is most of the gains from the
Speaker 5: AI trade have been felt by the enablers of AI,
Speaker 5: the infrastructure players, the semiconductors for example. We do think
Speaker 5: over time you will see the sectors that will benefit
Speaker 5: from the productivity gains of AI start to place a
Speaker 5: meaningful catchup as well. They mentioned healthcare, that's certainly one
Speaker 5: of the sectors, but if you look at financial services,
Speaker 5: if you look at manufacturing and industrials, all of those
Speaker 5: sectors we think will be beneficiaries. And this is over
Speaker 5: you know, not a twelve month period, but probably more
Speaker 5: like a three to five year period. We will start
Speaker 5: to see those productivity gains come through. And keep in
Speaker 5: mind those sectors are not only prevalent here in the US,
Speaker 5: but globally. When you think about where manufacturing, financials, industrials
Speaker 5: tend to lie, it does tend to be in non
Speaker 5: US markets as well. So we think there is a
Speaker 5: case to be made to have exposure to the US.
Speaker 5: We like having exposure that megacap technology, but also the
Speaker 5: sectors that may benefit from AI, but also international we
Speaker 5: think still plays a meaningful part of your portfolio.
Speaker 3: Thanks for going global with us. We love it. Menahajen,
Speaker 3: great to have you on Senior Investments. Stanks Jone had
Speaker 3: Edward Jones stay well, happy weekend. Meanwhile, well, look, maybe
Speaker 3: not a happy weekend for some if you're looking at
Speaker 3: the infrastructure here in the US, it's severe solar storm
Speaker 3: is expected this weekend and it threatens to trigger blackouts,
Speaker 3: disrupt navigation systems, knock out high frequency radios around the world.
Speaker 3: And this is the first time, it's January two thousand
Speaker 3: and five that the US Space where the Prediction Center,
Speaker 3: has actually issued a G four geomagnetic storm watch. It's
Speaker 3: the second highest on a five step scale, and it
Speaker 3: says multiple waves of solar energy are going to be
Speaker 3: bearing down on the planet now five eruptions, some material
Speaker 3: from the Sun's atmosphere of forecast to arrive starting late
Speaker 3: on Friday and persist through Sunday. Coming up, we'll hear
Speaker 3: from Snapchat CEO Evan Spiegel. Spiegel when talking all things
Speaker 3: social media as TikTok ban looms here in the United States,
Speaker 3: what did he have to say at yesterday's San Francisco
Speaker 3: tech e Ben Meanwhile, t SMC on an absolute tear.
Speaker 3: Let's focus in on the fact that it's April sales
Speaker 3: jumped sixty percent. You won't guess that it's a stayed
Speaker 3: demand for AI chips with me, there's a broadening out
Speaker 3: here as well. We've seen perhaps a bit of a
Speaker 3: bottoming out in the global smartphone industry as well, returning
Speaker 3: to growth for them. We're seeing it really paying out
Speaker 3: for the world's largest contract chip maker, this will be
Speaker 3: their technology time now for Talking Tech first up Elon
Speaker 3: Musk's U turn on superchargers Now, the Tesla founder says
Speaker 3: that the company will still spend well over five hundred
Speaker 3: million dollars to grow its charging network this year. Now.
Speaker 3: The news comes just over a week when Tesla actually
Speaker 3: fired nearly roughly five hundred people who were running the
Speaker 3: charging business plus for years. Now. Soft Bank has quietly
Speaker 3: sold off billions of dollars of assets from its flagship
Speaker 3: Vision Fund now, a sign that basically found in Masseosti's
Speaker 3: son is shifting away from broader venture capital deals towards
Speaker 3: investments in just semiconductors and AI.
Speaker 4: Now.
Speaker 3: Since the end of twenty twenty one, soft Bank's Vision
Speaker 3: funds sort its US portfolio shrink almost twenty nine billion dollars,
Speaker 3: and Microsoft enters the mobile gaming arena, announcing it will
Speaker 3: launch its own version of a mobile game store by July,
Speaker 3: taking on the likes of Apple and Google Now, the
Speaker 3: browser based store will debut Microsoft's own games and offer
Speaker 3: discounts on in game items Misoft says that eventually it
Speaker 3: will open the store to other publishers at a later date.
Speaker 3: Let's turn from gaming to social and snap CEO Evan
Speaker 3: Spiegel is urging the government to develop a more comprehensive
Speaker 3: framework for dealing with national security issues. Social media rival
Speaker 3: TikTok faces a divestment or band ultimatum. Now here's part
Speaker 3: of what he had to say at Bluebog's technology event
Speaker 3: in San Francisco.
Speaker 6: Always focused on communication between family and friends and making
Speaker 6: that really fast and fun and visual, and I think
Speaker 6: that's why we've been able to continue to grow through
Speaker 6: all the changes that you mentioned. Now reach more than
Speaker 6: eight hundred million people. So, you know, I think just
Speaker 6: sticking you know, really staying focused on those close relationships.
Speaker 6: They're the relationships that mean the most to us, are
Speaker 6: the people we talk to most frequently.
Speaker 1: And enriching that, you know, through Snapchat.
Speaker 6: With visual communication, with stories, with the math that allows
Speaker 6: people to see what their friends are up to, where
Speaker 6: they are, what they're doing. All these sorts of products
Speaker 6: I think help bring people close together with the people
Speaker 6: that mean the most to them. And I think that's
Speaker 6: really what's you know, led to our just enduring growth.
Speaker 7: We actually have a poll, a TikTok specific poll.
Speaker 3: What is your opinion on the TikTok ban.
Speaker 7: I'll be bummed when TikTok is banned. TikTok should be
Speaker 7: totally banned care either way, So please vote. Are you
Speaker 7: a TikTok should be totally banned kind of guy like that?
Speaker 7: Seems like it would be an opportunity for you.
Speaker 1: It's probably a no brainer.
Speaker 6: But really, what I think is is really important is
Speaker 6: that we come up with a durable framework to deal
Speaker 6: with these sorts of national security issues. I think the
Speaker 6: United States has recognized that there are these issues, but
Speaker 6: has sort of been dealing with them in sort of
Speaker 6: an ad hoc, one off kind of way, And I
Speaker 6: think that has real implications for the economy looking forward.
Speaker 1: If you think about how.
Speaker 6: Many businesses in the United States, you know, have a
Speaker 6: relationship with China, you know, whether or not they manufacture
Speaker 6: there or they sell their products there. I think it's
Speaker 6: going to be really important for those businesses here in
Speaker 6: the United States to get a lot of clarity around
Speaker 6: what the government thinks is totally okay. Maybe that's like
Speaker 6: kids toys and diapers and those sorts of things, no problem,
Speaker 6: you know, but sensitive technology chips, you know, things that
Speaker 6: could be used in weapons, probably not okay. And I
Speaker 6: think the sooner that the United States government can be
Speaker 6: clear about the areas where they think business cooperation makes
Speaker 6: a lot of sense, and also clear about the areas
Speaker 6: where it's you know, maybe not not okay, the more
Speaker 6: stability we can have in our economy, and I think
Speaker 6: we can you know, maybe better strengthen that relationship.
Speaker 1: I think it's the uncertainty that's tricky.
Speaker 6: So you know, I think the more the government can
Speaker 6: share about how they're thinking about those risks and you know,
Speaker 6: really create some clarity for business, that'll be helpful.
Speaker 7: Now TikTok's not banned yet, there is uncertainty for some
Speaker 7: of their really important stakeholders, like creators or advertisers. What
Speaker 7: are you guys doing to take advantage of that uncertainty
Speaker 7: right now?
Speaker 6: The most important thing we can do is just focus
Speaker 6: on our own business. Folks have lots of alternatives when
Speaker 6: it comes to short video. You know, they can use Spotlight,
Speaker 6: which is on our platform, or YouTube.
Speaker 1: Shorts or you know, Instagram reels.
Speaker 6: So I think there are a lot of different opportunities
Speaker 6: in the short video space. So what we've continued to
Speaker 6: do is just focus on what creators love about our platform,
Speaker 6: which is the relationship they can form with their audience,
Speaker 6: and that's primarily through our stories products. So creators love
Speaker 6: using stories to just show what they're doing throughout their day.
Speaker 6: And because we revenue, creators don't feel pressure to do
Speaker 6: all these brand deals. So Snapchat content just feels very authentic,
Speaker 6: which is why their viewers and their audience, you know,
Speaker 6: really love it and why that resonates with them.
Speaker 1: And then they use tools like Spotlight.
Speaker 6: To get more distribution to help people discover them so
Speaker 6: that they'll add them and watch their story on an
Speaker 6: ongoing basis. So I think that's a pretty unique value
Speaker 6: proposition we have for creators, and we're just going to,
Speaker 6: you know, really stay focused on that.
Speaker 3: Snap CEO even Spiegel yesterday, let's talk earnings now, with
Speaker 3: Grinder posting its first quarter results showing revenue growth thirty
Speaker 3: five percent year every year, let's discuss all of it,
Speaker 3: the margin as well, and the expansion of products. Grinder
Speaker 3: CEO George Arrison is here with me, and George you're
Speaker 3: saying in your statement, this is a really strong set
Speaker 3: of numbers. Still loss making, but much smaller loss.
Speaker 8: How are you not a real lass from the financial perspective,
Speaker 8: because it's all weren't related, So we'd have warrants because
Speaker 8: we did as back and warrants are held as a
Speaker 8: liability right, and so when you're we have an operating
Speaker 8: profit and then a loss because of the warrants. So
Speaker 8: from the business perspective, we didn't lose anyone and.
Speaker 3: An adjusted EBITDAR that's showing margin, that's improving.
Speaker 8: I mean, we did very well on even are fourty
Speaker 8: two percent, which I think is really healthy. And we're
Speaker 8: investing in the busines at the same time.
Speaker 3: So and where are you investing because you do talk
Speaker 3: about your product roadmap. In fact, you're bringing two key
Speaker 3: products to bear a lot of technical innovation that comes
Speaker 3: to the chat parts.
Speaker 8: Well, yeah, so that was a really big launch for us.
Speaker 8: We launched a new chat architecture. People would lose chats
Speaker 8: every time they switched phones before and there was a
Speaker 8: huge complaint. So that's not going to happen anymore because
Speaker 8: chats were hosted locally on your device, So we moved
Speaker 8: away from that. We are when I joined, we didn't
Speaker 8: really have a long term part problemap. We spent a
Speaker 8: lot of time last year working on that. We believe
Speaker 8: there's huge extension opportunities for the product, extending it into
Speaker 8: more into dating, building feature sets to support dating and
Speaker 8: do that not in terms of what other people did day,
Speaker 8: but what dating world will look like in two years
Speaker 8: one A What like, well, AI is going to be first, right, Like,
Speaker 8: I think people will expect that social networks will actually
Speaker 8: drive connections through AI rather than through filtering, because today
Speaker 8: the dating problems haven't really fundamentally changed. It is you
Speaker 8: come to a page and then you filter what you're
Speaker 8: interested in. I think that's going to really change.
Speaker 3: So you're going to be pushed people because they can
Speaker 3: the AI can already understand you exactly.
Speaker 8: Even from activity that you do on the app, or
Speaker 8: even activity from the outside the app. Right, Like, there's
Speaker 8: so much information your text messages about who you are,
Speaker 8: what you're into. What if there's a world where you
Speaker 8: uploaded a bunch of your text messages and we use
Speaker 8: that to understand who you are. I'm not necessarily saying
Speaker 8: we're going to do that, but those are the kinds
Speaker 8: of things I think that ay, I will allow companies
Speaker 8: like us to do and so we don't have a
Speaker 8: broad dating specific features are today. We have a lot
Speaker 8: of dating that happens on the app through conversations and chat,
Speaker 8: but not in terms of like features for dating specifically.
Speaker 8: And so as we build that out, I think there's
Speaker 8: a huge opportunity to kind of skip over the world
Speaker 8: we're in today and go directly through the world will
Speaker 8: be coming in a couple of years.
Speaker 3: What's interesting is, of course that means you have to
Speaker 3: have a lot of your community buy into that from
Speaker 3: a security perspective, and I know that at the moment
Speaker 3: in the UK, for example, you have been sued because
Speaker 3: of what you claim is four years a mischaracterization of
Speaker 3: the way that you were running the businesses practice four
Speaker 3: years ago. But when there is a concern about privacy,
Speaker 3: how do you start forward?
Speaker 8: So two things. One is for us, privacy is a
Speaker 8: paramount in sixty concerns in the world, being gay is illegal,
Speaker 8: and we have users in most of those countries, and
Speaker 8: so we need to really protect our user privacy because
Speaker 8: it's not just a matter of life good for business,
Speaker 8: it's a matter of their life and death. In some
Speaker 8: respects and so we take that really really serious thing.
Speaker 8: We do a lot to protect user privacy. That's where
Speaker 8: you can get on Grinder without giving a photo, for example,
Speaker 8: learn her the verification to support user privacy. Secondly, we've
Speaker 8: never shared any HIV or medical information with any advertiser ever,
Speaker 8: So it's a complete miscarpectation of what Grinder doesn't do.
Speaker 8: We've never done that and we never will. So we're
Speaker 8: going to fight that last suit very vigorously because we
Speaker 8: don't think it has a merit. But it's also important
Speaker 8: to remember that whatever they're seeing might have happened which
Speaker 8: is not true. Happened along there claiming happened a long
Speaker 8: time ago, two managements ago. So this is a very
Speaker 8: different regime at Grinder today than was under Chinese ownership
Speaker 8: in twenty and eighteen. So you know, I think that's
Speaker 8: an important thing as well. I think users have to
Speaker 8: trust us. That's that's really important for us, and that's
Speaker 8: why we make privacy such a big deal at the company.
Speaker 3: I wish we had longer, but we've got thirty seconds.
Speaker 3: One thing you are hiring.
Speaker 8: Again, we are We've grown our chetreeam about fifty percent
Speaker 8: on the last quarter and we have a lot of
Speaker 8: roles open across the company.
Speaker 3: George, come back, thank you for talking us through it all.
Speaker 3: Grind the CEO, George Rrison, on that thirty five percent,
Speaker 3: you're on near growth in revenue. Welcome back to Blue
Speaker 3: Meg Technology. I'm Caroline Hide in San Francisco, and let's
Speaker 3: just get you a quick check on these markets, because
Speaker 3: today we're currently seeing well, the market just a little
Speaker 3: bit sanguine on the broader benchmark. But then as that
Speaker 3: one hundred actually turning into the green. Now that we've
Speaker 3: had a relative wealth of overall contexts coming from the
Speaker 3: Federal Reserve, We've had FED speak still saying look, we're
Speaker 3: going to be keeping these rates higher for longer. You've
Speaker 3: also had on the flip side, some slightly weaker economic
Speaker 3: data when you're looking at consumer sentiment. Add that together
Speaker 3: and look, we're just still up about two tens per percent,
Speaker 3: and in fact we're on call for the best well
Speaker 3: a three straight week winning streak when it comes to benchmarks,
Speaker 3: actually the longest winning street that we seen since back
Speaker 3: to February. So we're currently higher. We're see the stock
Speaker 3: six hundred on a tear as well. Europe once again
Speaker 3: seeing another day of gains and that's been ramping up
Speaker 3: higher as we see earnings doing well. We're seeing tenure
Speaker 3: yield just up four basis points there. So still factoring
Speaker 3: in perhaps some of the supply that we've seen this
Speaker 3: week from the bomdernd auctions, but also perhaps still some
Speaker 3: sensitivity to FED speech saying we're high for longer. Move
Speaker 3: on to have a look at some of the individual
Speaker 3: movers that we're having a look at, because ultimately we've
Speaker 3: got key TSMC moves that we were just shining a
Speaker 3: light on at the previous part of the show. That
Speaker 3: TSMC up more than will call it five percent. Another
Speaker 3: great month April, just showing that revenue is higher and
Speaker 3: growing at a faster pace than the market had anticipated.
Speaker 3: Of course ongoing AI demand, but also factoring a global
Speaker 3: scene for smartphones it seems to be bottoming out and
Speaker 3: seeing some recovery and revenue growth, so key for that
Speaker 3: chip maker. We're looking at Tesla off by one and
Speaker 3: a half percent, whether that's the reversal that we've seen
Speaker 3: on its superchargers, whether or not. It's also the fact
Speaker 3: that we're getting more tough talk coming from the US
Speaker 3: the Bloomberg reporting that maybe we'll see increased tariffs coming
Speaker 3: on Chinese evs in particular, and what would that mean
Speaker 3: for the Tit for Tap? Could that hurt Tesla a
Speaker 3: little bit? So we're seeing it just down and video
Speaker 3: at one point four percent. Doesn't look like some of
Speaker 3: the chip makers are going to potentially be hit anymore
Speaker 3: when it comes to the Tit for tat with US
Speaker 3: and China. Remember we've got in VideA earnings still to come.
Speaker 3: But meanwhile, I want to take a quick like another
Speaker 3: key stock ack am I currently falling now? This is
Speaker 3: after forecasts for revenue and adjusted earnings per share came
Speaker 3: in well less than where the market had wanted to
Speaker 3: see it. Here to walk us through some of the
Speaker 3: numbers and the content distribution part in particular, that seems
Speaker 3: to be the weness. As a CEO, Tom Laton and
Speaker 3: security revenue was good, up twenty one percent, Compute revenue
Speaker 3: good up twenty five percent. But it's a delivery revenue
Speaker 3: that is under pressure. Is that what's really hitting the
Speaker 3: revenue forecasts?
Speaker 9: Yes, exactly right. You know Internet traffic always increases, but
Speaker 9: it's not in a straight line. And we have the
Speaker 9: world's largest content delivery network, and so when there are dips,
Speaker 9: we feel it. The good news is that we really
Speaker 9: diversified our business beyond delivery to the point where now
Speaker 9: two thirds of our revenue is security and compute, and
Speaker 9: as you noted, both of those businesses are very strong,
Speaker 9: great growth and great potential. And I think over time,
Speaker 9: as we have more and more of our revenue from
Speaker 9: security and compute, you know, the dips you get from
Speaker 9: time to time and Internet traffic, we won't see as
Speaker 9: noticeably on our overall performance.
Speaker 3: Interesting diversification key what's took me my interest was a
Speaker 3: large social media customer optimizing its costs. As what was
Speaker 3: put forward as to why you've downgraded so many outlooks.
Speaker 3: Who is the social media player? Are we seeing that
Speaker 3: more broadly.
Speaker 9: Or is it just one Well, we do have a
Speaker 9: very large social media company and they are cutting back
Speaker 9: as best they can on costs, you know, facing some
Speaker 9: geopolitical pressures, I would say more broadly. You know, we've
Speaker 9: seen sort of a week past couple of months in
Speaker 9: the gaming vertical and in video, and there's been a
Speaker 9: lot of reports out there talking about you know, subscriber numbers,
Speaker 9: you know, and traffic as a whole. And so we
Speaker 9: feel that because you know, we carried most of all
Speaker 9: the video out there and a very big for the
Speaker 9: gaming companies, and so that creates a little bit of
Speaker 9: a dip in our outlook for the year. That said,
Speaker 9: we raised our outlook on security and compute, both of
Speaker 9: those business is very strong.
Speaker 3: Tom, You're the perfect person to therefore ask, because I'm
Speaker 3: reading between the lines here. A geopolitically affected social media
Speaker 3: company has got to be TikTok, and I know that
Speaker 3: you have expertise when it comes to security and more
Speaker 3: broadly an exposure. At the moment that we're seeing of
Speaker 3: US companies to China, how much you seeing geopolitics weighing
Speaker 3: on your business and the business of your clients.
Speaker 9: Well, there is some concern there, and you know we
Speaker 9: made a disclosure that in particular, if the law does
Speaker 9: take effect banning TikTok, that could impact about a percent
Speaker 9: and a half of our revenue next year. You know,
Speaker 9: it shouldn't have a direct impact this year, and it
Speaker 9: remains to be seen if the law will go into effect.
Speaker 3: Are you trying to diversify out of exposure to China
Speaker 3: more and.
Speaker 9: More time well, we want to diversify our company as
Speaker 9: a whole. Today we have seven customers at one percent
Speaker 9: of revenue, and you know the goal is to have
Speaker 9: a broader and broader base, and I think we've done
Speaker 9: a really good job of that, both within the customer
Speaker 9: base and also across product lines and geographies, so that
Speaker 9: you know, you won't see much of an impact, you know,
Speaker 9: as we go forward, when you know particular things happen
Speaker 9: on the political stage, or you get a dip in traffic.
Speaker 3: And I mean with the wealth of patterns that you
Speaker 3: have and the focus on security, where are we in
Speaker 3: the cybersecurity landscape? How much are you seeing in particularly
Speaker 3: the age of artificial intelligence, it becoming harder and harder
Speaker 3: to ensure that we are protected in some way from
Speaker 3: our data.
Speaker 9: Yeah, things are in a very challenged state with cybersecurity,
Speaker 9: particularly with the advances in gen ai, which as of
Speaker 9: now are very helpful to the attacker. It's much easier
Speaker 9: for them to generate very malicious malware. We're seeing a
Speaker 9: lot more breaches and I think the key now really
Speaker 9: is to develop the internal layer of defense for an
Speaker 9: enterprise because probably you're going to get breached and the
Speaker 9: key is to identify it quickly and to proact block
Speaker 9: it spread. And there we have the market leading solution
Speaker 9: with guardacoor to stop the spread of ransomware and data
Speaker 9: exfiltration malware. And that's a very rapidly growing segment.
Speaker 3: For US and a key acquisition made Tom Layton thank
Speaker 3: you so much spending time with us Yakami a CEO,
Speaker 3: on all of geopolitics and indeed the revenue from the business. Meanwhile,
Speaker 3: at our Bloomberg Technology event, I actually talked a little
Speaker 3: bit more around AI but the infrastructure within coming from
Speaker 3: chip makers MPARE Computing. The CEO, Renee James, was on
Speaker 3: stage with me to discuss the state of well the
Speaker 3: semiconductor industry, some of the competition there. Take to listen.
Speaker 10: I had worked in semi conductors obviously a long time,
Speaker 10: and one of the unexplored areas was continuing to deliver
Speaker 10: performance but a lower and lower and lower power because
Speaker 10: one of the things that we had the luxury of
Speaker 10: doing in the early days of high performance semi conductors
Speaker 10: was just to use more power, like make them more powerful.
Speaker 10: We got faster, but we threw more power at it.
Speaker 10: So when we started the company, we said you know,
Speaker 10: we don't need to start a company to prove that
Speaker 10: we know how to make semi conductors or that to
Speaker 10: do what we'd already done. So really what we wanted
Speaker 10: to pioneer is what we call technical term efficiency frontier,
Speaker 10: which is that knife sedge between super high performance but
Speaker 10: at lower power. And up until the time that we
Speaker 10: started ampere, low power met low performance, okay, and so
Speaker 10: people would think about it and they'd be like, oh, yeah,
Speaker 10: we have a super low power device, like is it
Speaker 10: for a cell phone or is it you know whatever,
Speaker 10: even though nowadays phones.
Speaker 3: Are super bowful.
Speaker 10: So we endeavored to build products that could be air cooled.
Speaker 10: And we of course had been building microprocessors. My core
Speaker 10: team and I that started the company. We'd been building
Speaker 10: microprocess for a long time, as you pointed out, and
Speaker 10: we of course knew that you know, that mL AI
Speaker 10: was a major workload. We're thinking a lot about how
Speaker 10: much power takes and how are we going to even
Speaker 10: be able to build all these data centers because we
Speaker 10: had we had been a team that had worked together
Speaker 10: on the first phase of build out of what you
Speaker 10: now call hyperscalers, and we knew how big these data
Speaker 10: centers were getting and how much power these chips the combination.
Speaker 3: Right, So that was our thesis.
Speaker 10: You can do this at lower power. You can do
Speaker 10: this in a way that enables all these workloads and
Speaker 10: stay air cooled, which means you don't have to build
Speaker 10: a brand new data center with liquid cooling, and that
Speaker 10: you can stay within the envelope of kind of you know,
Speaker 10: think about being landlocked. When you build a data center,
Speaker 10: you have a certain amount of power in that footprint.
Speaker 10: How are you going to ever upgrade to better compute.
Speaker 3: It's a relatively new chip company and it's making inroads
Speaker 3: into market share and PR computing CEO and A James there.
Speaker 3: Of course, twenty eight years you'd had an Intel before
Speaker 3: spotting her own company coming up, we're going to be
Speaker 3: joined by Index's partners, Nina at Chatian. She's scared her
Speaker 3: take on AI investing trends of course, where she's seeing
Speaker 3: the hype in the reality that's next this will be
Speaker 3: my technology.
Speaker 5: I think twenty twenty four is going to be a
Speaker 5: monumental year for AI.
Speaker 2: The current generation of models that we're seeing out there
Speaker 2: is still in one hundred million dollar range, you know,
Speaker 2: I think all of this can scale to one hundred
Speaker 2: billion dollar range.
Speaker 1: LAMA three should not be open source. It's a national
Speaker 1: security has to open source.
Speaker 11: We are trying to be the most responsible actors that
Speaker 11: we can be and think about what are the potential
Speaker 11: externalities that could be caused kind of accidentally by this tech.
Speaker 5: I also worry about over hyping of human extinction risk.
Speaker 1: I think that is blown out of control.
Speaker 6: I feel like today every single company has to guild
Speaker 6: their own AI.
Speaker 1: They run the risk of being left behind.
Speaker 3: Yet the theme there it was AI of cross every
Speaker 3: single conversation yesterday when we're at the Blueback Technology event,
Speaker 3: and let's keep that conversation going. He now shady and
Speaker 3: is with us in Next Ventures partner who joins us
Speaker 3: to today's VC spotlight. A boy, you've been busy writing
Speaker 3: some checks backing some AI companies and are the valuations
Speaker 3: out of whak?
Speaker 12: Well, thank you for having me, Caroline, It's great to
Speaker 12: see you. Yes, there is definitely a tale of two cities.
Speaker 12: If you are an AI company right now, you can
Speaker 12: raise in the one hundred x er or multiple But
Speaker 12: if you're not an AI company, it's still trending around
Speaker 12: ten x. So there is a huge discrepancy between the
Speaker 12: valuations for AI and everybody else where.
Speaker 3: Are you seeing the value therefore in AI investments, where
Speaker 3: would you want to be allocating checks when they are
Speaker 3: at a heady price point?
Speaker 12: Yeah, So for us, it really comes back down to
Speaker 12: the basics. Is this company building something that has true
Speaker 12: ROI for their customers? And we're really seeing that a
Speaker 12: lot in the application layer sometimes focus on very specific verticals.
Speaker 12: For example, we invested in this company called Viscom. They
Speaker 12: build software for industrial designers. So think anybody that has
Speaker 12: to design a shoe, a car, a piece of furniture
Speaker 12: may use AI to help these industrial designers accelerate their process.
Speaker 12: And they had some inbound interest very early on from
Speaker 12: huge companies like Ford and New Balance, And so those
Speaker 12: are really the areas that we find attractive to invest
Speaker 12: clear customer, clear ROI, and of course over time we'll
Speaker 12: see more and more of these.
Speaker 3: Hopefully you're leading the team here in San Francisco, and
Speaker 3: I'm sure there's many an entrepreneur who've used US who's
Speaker 3: interested in how therefore this called gets your interest? How
Speaker 3: did they get your inbound? Did they come to you?
Speaker 3: Do you come to them? How you finding out these
Speaker 3: jewels in the rough.
Speaker 12: Yeah, Well, for us, it's all about investing in people,
Speaker 12: and so we try to build relationships with folks very early.
Speaker 12: Sometimes this is while they're still at their current job,
Speaker 12: or it could be through a network that we have
Speaker 12: of our own entrepreneurs. And so we really meet people
Speaker 12: in all different avenues, whether it's a pants referrals from
Speaker 12: our own entrepreneurs, or even just outbound, and so we're
Speaker 12: always open to meet great entrepreneurs.
Speaker 3: Where are some of the other use cases of AI
Speaker 3: really peaking your appetite there? It seemed to be more
Speaker 3: the visual perspective in the way in which ultimately we
Speaker 3: can spark creativity. Look at the backlash the Apples ad
Speaker 3: like there's a worry about creativity being stifled rather than
Speaker 3: rather than augmented. But where else is oxygen intelligence and
Speaker 3: generative AI reaping rewards for some of the companies that
Speaker 3: you look at?
Speaker 12: Yeah, so, I think the code generation space has been
Speaker 12: an area that a lot of people have talked about,
Speaker 12: and there's many companies that have popped up in the space.
Speaker 12: But that seems one that's an obvious use case and
Speaker 12: we've already seen a lot of customers, even Fortune five
Speaker 12: hundreds really putting down, you know, commitment to try out
Speaker 12: these new codegen softwares companies like Augment for example, and others,
Speaker 12: And so we're really excited about that use case. And
Speaker 12: then if you think about anybody that's using pen and
Speaker 12: paper and has a lot of unstructured data, that really
Speaker 12: is ripe for the use of AI, because now suddenly
Speaker 12: you can make sense of all of that data and
Speaker 12: really integrate into your workflow something that will accelerate what
Speaker 12: you're trying to do.
Speaker 3: That sparks my imagination back to a conversation with may
Speaker 3: havebb yesterday of right REI, and she was saying, like,
Speaker 3: ultimately scanning all the cools from other companies right now
Speaker 3: who are running out of money and they would need
Speaker 3: to be bulled. Is this something you're seeing of a
Speaker 3: generation of AI entrepreneurs that companies off the ground but
Speaker 3: they can't sustain it from a cost perspective. Absolutely.
Speaker 12: I think we're going to see a lot of consolidation
Speaker 12: in the space because everybody talks about how it's a
Speaker 12: war for talent specifically within AI, and it's just not
Speaker 12: sustainable that all of these companies can exist at very
Speaker 12: high valuations when they're still very early in revenue. And
Speaker 12: so you know, we saw that very early on with
Speaker 12: Mosaic and Data Bricks, of course, the Inflection and Microsoft partnership,
Speaker 12: and so I think we'll start to see more and
Speaker 12: more of that over time, and hopefully, you know, two
Speaker 12: plus two one plus one will equal greater than two.
Speaker 3: Are we going to get more of these weird kind
Speaker 3: of acquihighs though, because the Inflection Microsoft deal it was
Speaker 3: a relatively extraordinary one.
Speaker 12: I wish I could tell you it was extraordinary. We
Speaker 12: were also scratching our heads a little bit on it.
Speaker 12: But look, I think it all comes down to acquisition
Speaker 12: of talent. And I think for a lot of companies
Speaker 12: that have raised money and they're struggling to find that
Speaker 12: product market fit, I think it could be an attractive
Speaker 12: path for them moving forward.
Speaker 3: We've only got forty seconds left, But where else, if
Speaker 3: not AI, where can still be a good investment.
Speaker 12: Look, I still think this transition from doing things manually
Speaker 12: to digitizing them is really important for some of these
Speaker 12: massive industries. For example, there's a company that I invested
Speaker 12: in called Siso. They're trying to be the work day
Speaker 12: for the agriculture industry. So right now, in the agriculture
Speaker 12: industry you have to do a lot of paperwork on
Speaker 12: digital onboarding completely manually. So doing things like that and
Speaker 12: helping those huge industries really transform to tech first, I
Speaker 12: think is a huge opportunity.
Speaker 3: Wish we could talk more. Nina, Thanks for coming in.
Speaker 3: Thank great to have you here. Nina shout in which
Speaker 3: is an Index Benures partner right based here in San Francisco. Now,
Speaker 3: let's go back to the new meg Tech event that
Speaker 3: was held right in this city yesterday. Flow co founder
Speaker 3: and of course well known for being the We Work CEO,
Speaker 3: Adam Newman, sat with our own Bradstone yesterday to discuss
Speaker 3: his attempts to win back We Work.
Speaker 13: Take a listen, and we're just at the middle of
Speaker 13: all of it right now. But just to explain a
Speaker 13: little bit more about it, our bid was six hundred
Speaker 13: and fifty million. The bid that seems to be the
Speaker 13: one that they're considering to confirm at the end of
Speaker 13: the month is four hundred million. It's the difference of
Speaker 13: two hundred and fifty million. The number is very important.
Speaker 13: I'll explain a second. Why two when in bankruptcy and
Speaker 13: I'm learning a lot about I've never heard anything about
Speaker 13: it before, so it's all new. I didn't think bankruptcy
Speaker 13: was a beauty competition.
Speaker 2: I thought bankruptcy was where there is a line in
Speaker 2: your in your in your brief.
Speaker 13: Yeah, it's it is a lender brief. I thought it
Speaker 13: was whoever is going to give the best offer, and
Speaker 13: when you base it, you based well, what is the
Speaker 13: other offer? What's the plan that So they show a
Speaker 13: plan and they give numbers, and just to share a
Speaker 13: few numbers in the plan that's going to be presented
Speaker 13: to the judge at the end of the month. The
Speaker 13: plan says that the average two numbers that are very
Speaker 13: easy to track, average revenue, member and occupancy. The two
Speaker 13: numbers that the current plan is forecasting would be the
Speaker 13: highest numbers we have seen since twenty nineteen, which is
Speaker 13: as far as we can go, which I would call
Speaker 13: peak office and would hockey stick, and they would have
Speaker 13: to achieve those numbers by the end of this year.
Speaker 13: I'll say a little more. The profit margin of the
Speaker 13: margin of the buildings would have to go from sixteen
Speaker 13: percent margin, which is the last number that we saw
Speaker 13: right before it went declared bankruptcy to twenty four percent.
Speaker 13: That is fifty percent growth in margin by the end
Speaker 13: of this year.
Speaker 2: And this is under your plan or the plan this
Speaker 2: is you're saying it's could be hyperbolic.
Speaker 13: Oh, I'm saying it's definitely unpheasical.
Speaker 1: But let me just ask you.
Speaker 2: I mean, don't the creditors have a legal requirement to,
Speaker 2: you know, to take the best deal? So what is
Speaker 2: there something? And you said it's not a popular early content.
Speaker 2: So if it was, you know, why if they looked
Speaker 2: at your deal and perhaps had a legal requirement, had
Speaker 2: a very very self interested requirement to take the best deal,
Speaker 2: why why do you think that they have bypassed.
Speaker 13: We're maybe getting we're getting very technical, but let's say one, I.
Speaker 2: Don't think it's a technical question.
Speaker 13: Well it is because your real question you're asking is
Speaker 13: is the judge obligated to take the best deal or
Speaker 13: does the judge get to choose what deal he's going
Speaker 13: to take? And I think it gets quite technical. But
Speaker 13: let's say something else, just about back to what I said,
Speaker 13: from sixteen percent to twenty four percent, fifty percent growth
Speaker 13: in one year without spending any money on an old
Speaker 13: on a business that now has aging buildings and what
Speaker 13: I think is one of the worst office markets maybe
Speaker 13: in the history, but definitely of the past forty years.
Speaker 13: Look around just here in San Francisco, but it's a
Speaker 13: global phenomenon. If they achieve these very rosy plans that
Speaker 13: I think are unfeasible, they would then need to in
Speaker 13: twenty twenty five grow from that to not go cash
Speaker 13: flow negative.
Speaker 3: Weird old five it's going viral. That was part of
Speaker 3: Apple's recently pulled advertisement, of course, for the new iPad air.
Speaker 3: The company facing backlash online after the ad depicted so
Speaker 3: as you can see musical instruments, TVs, paint cans, other
Speaker 3: creative tools being crushed into an iPad. Apple issued a
Speaker 3: rare apology for the advert and said that an upset
Speaker 3: many creators and other customers. The company also said it
Speaker 3: will not air the ad on television as planned. Meanwhile,
Speaker 3: let's just talk about healthcare for a moment and a
Speaker 3: huge acquisition that Oracle did a twenty eight billion dollar
Speaker 3: one two years ago to acquire electronic records company Serna,
Speaker 3: promising a revolution and healthcare technology. However, interviews with more
Speaker 3: than thirty current and former employees and customers show that
Speaker 3: software maker has lost at least a dozen centers. Large
Speaker 3: clients used to say that Bradie Ford is the guy
Speaker 3: behind the very well word story and so what they're
Speaker 3: all in on a healthcare but the clients don't seem
Speaker 3: to slight the time together.
Speaker 14: If you are anybody with a brain, it's hard not
Speaker 14: to look at the healthcare system of America and say,
Speaker 14: something's not right here.
Speaker 1: We can fix this.
Speaker 14: Apple's done it, Google's done it now, Oracle's done it consistently.
Speaker 14: They found, hey, this is tough to disrupt, right, and
Speaker 14: so Oracle said that we can buy this company, which
Speaker 14: makes essentially if you're at the doctor's office and they're
Speaker 14: taking notes, prescribing stuff, all the kind of software for
Speaker 14: medical facilities they run that. They said, if we buy this,
Speaker 14: we can integrate these systems well, put it on the cloud,
Speaker 14: make it run easier, or a tech company gener today
Speaker 14: grows some generative AI. Turns out it's hard. So it's
Speaker 14: been really tough. They haven't been able to make the
Speaker 14: progress they've wanted. The company they bought it was kind
Speaker 14: of on a downward trajectory. So I mean, this is
Speaker 14: not all Or's fault. But in the two years since
Speaker 14: they've purchased it, the outcome has been revenues down, Customers
Speaker 14: have left, They've fired three thousand plus people. It has
Speaker 14: been tough going. And when they bought initially the talking
Speaker 14: point was this is going to boost our earnings, revenue
Speaker 14: growth engine. Exclusive financials we reviewed show this has not
Speaker 14: been the case.
Speaker 3: We've got thirty seconds. But the move to Nashville, then
Speaker 3: I'm not gonna happen to Nashville.
Speaker 1: Look, it's hard to say.
Speaker 14: I saw some other documents that when they moved to
Speaker 14: Texas more people are still in California. So what does
Speaker 14: the headquarters mean? Is it a state of mind? Is
Speaker 14: it where all your employees are?
Speaker 13: We do not know.
Speaker 3: It's a state of mind, very cooled, natural state of mind.
Speaker 3: We thank you so much for being with us. He's
Speaker 3: going back to New York. I'm going back to New York.
Speaker 3: That's it for this edition of Bloombg Technology. Do not
Speaker 3: forget to check out our podcast. You can relive so
Speaker 3: much as the great content that came out of the
Speaker 3: event yesterday at San Francisco. This is Bloomberg