WEBVTT - Bad Week for Tech Stocks and Grindr's New CEO 0:00:02.279 --> 0:00:05.560 From the heart of where innovation, money and power COLLI 0:00:06.400 --> 0:00:10.920 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.960 --> 0:00:27.560 Emily Jay. I'm Emily check in San Francisco, and this 0:00:27.720 --> 0:00:30.920 is Bloomberg Technology coming up in the next hour. It 0:00:31.040 --> 0:00:33.400 was a bad week for tech stock that just kept 0:00:33.400 --> 0:00:35.879 getting worse from big names too small. It was the 0:00:35.880 --> 0:00:40.360 worst five days for the nast accents January as investors 0:00:40.360 --> 0:00:44.839 wonder what the Fed does next. Plus Grinder, the dating 0:00:44.840 --> 0:00:47.360 app focused on the l g B t Q plus 0:00:47.560 --> 0:00:50.519 community as a new CEO or conversation with George Harrison 0:00:50.920 --> 0:00:54.560 as it readies for a public debut, And bad news 0:00:54.600 --> 0:00:58.279 for Star Wars fans, Disney has pulled the upcoming film 0:00:58.440 --> 0:01:02.640 Rogue Squadron from its three release calendar. How this will 0:01:02.720 --> 0:01:08.040 impact theaters globally this hour. I am a hacker. That 0:01:08.200 --> 0:01:11.840 is the Slack message that Uber employees received from an 0:01:11.920 --> 0:01:15.360 unknown source late Thursday, prompting the company to shut down 0:01:15.440 --> 0:01:19.400 its internal Slack messaging as it investigates a massive cyber breach. 0:01:19.520 --> 0:01:22.440 This according to The New York Times. My next guest 0:01:22.520 --> 0:01:25.600 casey Ls is the founder and ct O of bug Crowd, 0:01:25.640 --> 0:01:28.640 a bug bounty company that specializes in identifying errors or 0:01:28.720 --> 0:01:32.560 vulnerabilities in other companies software systems. He joins us now 0:01:33.040 --> 0:01:36.760 to break it all down. So it sounds pretty serious. Casey, 0:01:36.800 --> 0:01:39.839 I know, there's a real fire drill happening inside uber 0:01:40.000 --> 0:01:42.720 right now. How did this happen? Yeah, so thank you 0:01:42.760 --> 0:01:45.480 for having me. Um. You know, bug crowd works with 0:01:45.520 --> 0:01:47.320 hackers all the time, but this was one of the 0:01:47.960 --> 0:01:50.480 bad ones that we try to stop. Essentially, what we 0:01:50.520 --> 0:01:52.760 know at this point is that there was either through 0:01:52.880 --> 0:01:58.080 text messaging or possibly a multi factor push message notification, 0:01:58.520 --> 0:02:02.480 basically a spam campaign conducted against people with with elevated 0:02:02.520 --> 0:02:07.960 privilege within uber. Um. That spam campaign was successful, and um, 0:02:08.120 --> 0:02:10.760 you know, because of that success, the the attacker got 0:02:10.800 --> 0:02:13.400 access to credentials that got them inside the network. Once 0:02:13.400 --> 0:02:16.240 they're inside, they're able to to move around, you know, 0:02:16.240 --> 0:02:19.080 find additional information to escalate their privilege and and do 0:02:19.200 --> 0:02:20.720 some of the things that caused, you know, some of 0:02:20.720 --> 0:02:23.160 the weirdness that was on Slack for example, to that 0:02:23.240 --> 0:02:25.720 started to break yesterday. Let's talk about the weirdness. One 0:02:25.720 --> 0:02:29.400 of my sources says there are unseemly pictures all over 0:02:29.440 --> 0:02:35.560 their internal networks. Aside from wreaking havoc. What kind of 0:02:35.680 --> 0:02:39.760 valuable information could they've gotten their hands on. Yeah, it's 0:02:39.760 --> 0:02:43.000 it's speculation at this point because you know, I think Uber, 0:02:43.400 --> 0:02:46.880 as of two hours ago, they're they're basically posting precautions. 0:02:46.919 --> 0:02:49.000 There was there was obviously the notice and the report 0:02:49.040 --> 0:02:51.560 of them, you know, telling their internal employees to stop 0:02:51.639 --> 0:02:56.840 using Slack and so on. Um So it looks from 0:02:56.880 --> 0:03:00.000 from the outside in that you know, nothing is necessarily 0:03:00.080 --> 0:03:02.079 off the table at this point, and there's still obviously 0:03:02.200 --> 0:03:04.720 a lot of incident response going down, like Uber is 0:03:04.760 --> 0:03:08.920 having a very busy Friday and quite likely a very 0:03:08.960 --> 0:03:11.000 busy weekend just being able to reverse this thing out 0:03:11.000 --> 0:03:13.079 and work out exactly what has happened so they can 0:03:13.080 --> 0:03:16.840 take the appropriate response steps and and obviously alert people 0:03:17.360 --> 0:03:19.320 um as as necessary as well. But you know, as 0:03:19.320 --> 0:03:21.440 at this point in time, they're they're saying that, you know, 0:03:21.720 --> 0:03:25.120 things like private user data has not been accessed, uh 0:03:25.320 --> 0:03:28.440 and and so on. So it's not necessarily um an 0:03:28.480 --> 0:03:30.600 assumption that the attack has gone and gotten everything and 0:03:30.760 --> 0:03:32.760 and used all of that. But obviously they've had a 0:03:32.760 --> 0:03:35.280 lot more access than they should and when anything like 0:03:35.320 --> 0:03:37.560 that happens, especially with some of the kind of trolling 0:03:37.600 --> 0:03:38.960 that seemed to go on and off the back of 0:03:38.960 --> 0:03:42.360 the hack, inside the inside the corporate environment of of 0:03:42.480 --> 0:03:45.080 uber Um. There's a lot of work to be done 0:03:45.120 --> 0:03:46.880 to figure out, you know, what exactly has happened so 0:03:46.880 --> 0:03:49.200 it can be fixed, you know, as you say, Uber 0:03:49.240 --> 0:03:52.120 says they have no evidence that the incident involved access 0:03:52.160 --> 0:03:56.440 to sensitive Uber data. It doesn't seem like the Uber service, 0:03:56.600 --> 0:04:01.560 the public Uber right sharing service has been impacted yet, right, Yeah, 0:04:01.600 --> 0:04:04.960 it seems like yeah, correct. They seem to be focusing on, 0:04:05.000 --> 0:04:08.440 you know, continuing operations and providing business as usual. But 0:04:08.480 --> 0:04:11.480 obviously Um you know, talking to folk on on the 0:04:11.520 --> 0:04:15.160 inside and folk rounds the situation. They are very busily 0:04:15.440 --> 0:04:17.640 burning the whole thing down and working out exactly what 0:04:17.760 --> 0:04:19.600 needs to be taken as a as a response step 0:04:19.600 --> 0:04:22.880 and as future precautionary steps as well. All external services 0:04:22.920 --> 0:04:26.640 operational to this point. Now, there's an interesting bug bounty 0:04:26.839 --> 0:04:29.920 tie in here in that the perpetrator also got into 0:04:30.000 --> 0:04:34.760 their hacker one system, which helps the company um pay 0:04:34.880 --> 0:04:39.159 bug bounties to people who find vulnerabilities in Uber system. 0:04:39.200 --> 0:04:43.080 This is similar to what your company bug crowd does. 0:04:43.560 --> 0:04:46.120 What do you make of this yeah, it's it's similar 0:04:46.160 --> 0:04:48.880 to to a big part of what we do for sure. Look, 0:04:49.200 --> 0:04:51.000 I think what I what I make of that is 0:04:51.080 --> 0:04:53.920 that that's actually how I first lewent of of of 0:04:53.960 --> 0:04:57.880 the issue. There was there was basically more spam. So 0:04:57.960 --> 0:05:00.480 you talked about some of the inappropriate pitch is and 0:05:00.960 --> 0:05:03.640 there was you know, apparently bands are going on on 0:05:03.640 --> 0:05:06.400 on the corporate slack um, you know, people interacting with 0:05:06.400 --> 0:05:10.000 with the attacker and so forth. UM. Kind of carrying 0:05:10.000 --> 0:05:13.000 along that same line, there was messages that got sent 0:05:13.040 --> 0:05:16.800 out to basically everyone in the researcher community or in 0:05:16.839 --> 0:05:19.120 the white called the white hat hacker or the good 0:05:19.120 --> 0:05:23.080 guy that thinks like bad guys um community who had 0:05:23.120 --> 0:05:26.440 submitted an issue into hacker one in the past, basically 0:05:26.520 --> 0:05:28.800 saying this is what's happened, like I'm in here now 0:05:29.040 --> 0:05:31.480 just so you know. UM. They didn't really seem to 0:05:31.520 --> 0:05:33.520 be much of an intend or purpose to that other 0:05:33.560 --> 0:05:35.839 than just to make a bunch of noise, but it 0:05:35.880 --> 0:05:38.479 definitely did UM. And you know, at that point in time, 0:05:38.480 --> 0:05:41.680 you've obviously got a whole bunch of computer security experts 0:05:41.720 --> 0:05:44.200 receiving this message. They jumped straight into like what the 0:05:44.200 --> 0:05:47.120 hecks happened mode um, at which point, you know, I 0:05:47.200 --> 0:05:50.440 noticed it and got involved and obviously started taking you know, 0:05:50.480 --> 0:05:53.640 whatever steps might be necessary. From from our perspective at 0:05:53.680 --> 0:05:55.800 bug crowd, it's like, Okay, if there's weird stuff going 0:05:55.839 --> 0:05:59.680 on that's impacting the vulnerability disclosure and bug bounty space, 0:05:59.720 --> 0:06:01.600 and we're obviously a large part of that spice, we 0:06:01.720 --> 0:06:03.920 need to make sure that you know, there's nothing affecting 0:06:03.960 --> 0:06:06.200 us as well, which sure enough it w wasn't decompy 0:06:06.240 --> 0:06:07.720 too careful and this sort of thing starts to go 0:06:07.800 --> 0:06:11.560 down well. Interestingly, at this very same time, Joe Sullivan, 0:06:11.640 --> 0:06:14.359 the former chief security officer at Uber, has been on 0:06:14.480 --> 0:06:17.960 trial for a data breach, a huge data breach that 0:06:18.000 --> 0:06:22.240 happened back in sixteen that the company allegedly didn't notify 0:06:22.279 --> 0:06:25.480 the public about when they should have. Uber at the time, 0:06:25.520 --> 0:06:28.640 as I understand it paid this hacker a hundred thousand 0:06:28.640 --> 0:06:32.000 dollars to make the hacker go away, but didn't properly 0:06:32.640 --> 0:06:38.240 disclose it. Um, what do you make of of the 0:06:38.360 --> 0:06:41.880 timing and also the history of Uber maybe not having 0:06:41.880 --> 0:06:46.360 a great track record here. Yeah, it's it's interesting because 0:06:46.400 --> 0:06:49.280 obviously that cases is ongoing at this point. I think 0:06:49.279 --> 0:06:51.680 it's actually you know, it's in session today. It's been 0:06:51.680 --> 0:06:55.080 in session pretty much a week, um, to my knowledge, 0:06:55.160 --> 0:06:57.920 And you know, I think Joe's side of the story 0:06:57.960 --> 0:07:00.240 and kind of the internal side of the story through 0:07:00.240 --> 0:07:04.719 discoveries is playing out now. Um. You know, that whole 0:07:04.800 --> 0:07:07.839 that whole incident, I mean, probably the other thing that 0:07:07.880 --> 0:07:09.960 got my spidey sense is tingling just a little bit, 0:07:10.440 --> 0:07:12.480 um with with the timing of all of this, was 0:07:12.520 --> 0:07:15.640 obviously that that whole thing is going on currently with 0:07:15.680 --> 0:07:19.120 respect to the to the breach. Um, You've got you know, 0:07:19.160 --> 0:07:21.200 a bunch of other things happening that that are just 0:07:21.280 --> 0:07:26.200 generally um, you know, encouraging I guess activist, Um, you know, 0:07:26.240 --> 0:07:31.680 activism activity around you know, Bay Area tech. At the moment, 0:07:31.680 --> 0:07:33.320 there's a there's a string of things that are happening 0:07:33.320 --> 0:07:38.760 that's getting people's attention. You Mudge's testimony h earlier on 0:07:38.800 --> 0:07:40.440 in the week was respect to Twitter, you know, the 0:07:40.440 --> 0:07:42.200 stuff that's going on with cloud Flower over the past 0:07:42.200 --> 0:07:44.640 couple of weeks. There's a lot of very heightened and 0:07:44.720 --> 0:07:47.280 very passionate subjects kind of all boiling up at the 0:07:47.320 --> 0:07:51.400 same time. Um. And that was frankly the correlation between 0:07:51.440 --> 0:07:53.080 all of those things, and then this happening at Ober 0:07:53.200 --> 0:07:54.600 was was one of the things that kind of you 0:07:55.080 --> 0:07:57.080 caused me a bit of a sleepless, sleepless night last 0:07:57.160 --> 0:07:58.480 night trying to figure out what that is going on. 0:07:59.120 --> 0:08:02.920 But yeah, and so of you know, speaking to how 0:08:02.960 --> 0:08:05.240 that reflects on Uba and how it reflects on all 0:08:05.240 --> 0:08:07.880 of that, It's it's too early to say any of that, 0:08:07.920 --> 0:08:10.320 you know. I think my my main thought right now 0:08:10.440 --> 0:08:13.720 is is frankly, um, you know, sympathy and kind of 0:08:13.760 --> 0:08:15.640 my heart going out to the security team that's having 0:08:15.640 --> 0:08:18.200 to work a very long weekend coming up to burn 0:08:18.240 --> 0:08:20.160 this whole thing down. So I think just starting there 0:08:20.200 --> 0:08:23.200 is probably the right place to start long hard weekend 0:08:23.320 --> 0:08:25.840 for sure, ahead of them. Casey Ellis, founder and CTEO 0:08:26.080 --> 0:08:29.760 of bug Crowd, Thank you for stopping by. Coming up. 0:08:29.960 --> 0:08:32.800 Grinder gets a brand new CEO. We're gonna speak with 0:08:32.800 --> 0:08:37.559 George Arison next about his ideas for the popular dating 0:08:37.600 --> 0:08:54.640 app Mrs Bloomberg. The dating app Grinder just announced the 0:08:54.640 --> 0:08:58.440 new CEO, George Arison, co founder and former CEO of 0:08:58.480 --> 0:09:01.880 the auto e commerce marketplace Shift. The ftill has applied 0:09:01.880 --> 0:09:04.760 to a point someone who identifies with the lgbt Q 0:09:04.920 --> 0:09:08.160 plus community in this top role. As the company prepares 0:09:08.200 --> 0:09:10.920 to go public, George Arison joins us Now for more 0:09:11.480 --> 0:09:16.040 on the big news. So stepping into a big role here, George. 0:09:16.080 --> 0:09:19.640 But you have some experience with UM obviously a car 0:09:19.720 --> 0:09:23.400 marketplace and on the board. What did you learn behind 0:09:23.480 --> 0:09:27.120 the scenes that you think you bring to the table here. Look, 0:09:27.360 --> 0:09:30.960 Grinder is an amazing company. UM I build a company 0:09:31.000 --> 0:09:33.800 taken in public, but margins are always a challenge in 0:09:33.840 --> 0:09:36.480 our on the auto business, and with Grinder, margins are 0:09:36.520 --> 0:09:40.560 amazing and so that's obviously a very big difference. Grinder 0:09:40.640 --> 0:09:43.600 is a really awesome business, but more importantly, it's a 0:09:43.679 --> 0:09:47.559 really awesome mission. Right You're serving a community that's been 0:09:47.640 --> 0:09:50.880 underserved and then uses this product in a really dramatic 0:09:50.920 --> 0:09:54.440 way to connect And that mission to me is super 0:09:54.520 --> 0:09:56.960 killing and I'm really excited to be UM to be 0:09:57.000 --> 0:09:59.640 a part of it. Uh. And obviously Grinder has been 0:09:59.679 --> 0:10:01.719 around for a long time since two thousand and nine. 0:10:01.960 --> 0:10:04.360 The product, as we haven't really finally changed in that 0:10:04.440 --> 0:10:07.480 time period. People have used it the same way for 0:10:07.480 --> 0:10:10.319 for a long time, but the features that it offers 0:10:10.520 --> 0:10:13.760 have obviously expanded. It's come from being just about sex 0:10:13.800 --> 0:10:15.839 to being about dating, and now it's used that in 0:10:15.880 --> 0:10:18.600 a lot of pub ways. And my goal, let's see, 0:10:18.640 --> 0:10:20.320 I was going to be to try to continue nurture 0:10:20.400 --> 0:10:23.360 this really incredible product um and the community that it 0:10:23.400 --> 0:10:25.440 serves in the best way. We can talk to us 0:10:25.440 --> 0:10:28.280 a little bit more about how Grinder is used globally, 0:10:28.320 --> 0:10:31.200 because I think there's you know, one impression it is, 0:10:31.240 --> 0:10:34.160 you know, quote unquote just a dating app, but it's 0:10:34.280 --> 0:10:37.760 actually so much more. Yeah, I mean, in so many 0:10:37.840 --> 0:10:41.040 there's so many other things. People use it for. Travels 0:10:41.120 --> 0:10:44.160 and massive feature said that people use it for and 0:10:44.200 --> 0:10:46.199 it's all, by the way organic. It's not like Grinders 0:10:46.280 --> 0:10:49.800 built products to facilitate travel, but people logged into a 0:10:49.880 --> 0:10:52.600 city they might be visiting to start talking to people 0:10:52.640 --> 0:10:55.360 about where they should say, what they should do, where 0:10:55.400 --> 0:10:58.160 they should um go out to dinner or go out 0:10:58.160 --> 0:11:00.800 to have fun. So in a very organic way, people 0:11:00.880 --> 0:11:04.680 use it for travel. Health information is another massive feature 0:11:04.840 --> 0:11:08.440 and Grinder with the market pops epidemic right now, Grinder 0:11:08.480 --> 0:11:12.559 has been very active in helping our user base understand 0:11:12.640 --> 0:11:14.800 that there's a problem and where to get vaccines, how 0:11:14.840 --> 0:11:17.079 to get them. There's even like a feature inside the 0:11:17.120 --> 0:11:19.000 app to find out a way should go get a vaccine. 0:11:19.320 --> 0:11:21.679 So people use Grinder in a ton of different ways. 0:11:22.040 --> 0:11:24.760 One of the interesting things for me on the board 0:11:24.800 --> 0:11:27.800 the last couple of months, we left one of the 0:11:27.920 --> 0:11:31.520 very challenging countries UM to be operating in and to 0:11:31.640 --> 0:11:35.880 be gay in UM recently because we just didn't feel comfortable. 0:11:36.280 --> 0:11:39.040 And you know, we heard that so much feedback from 0:11:39.520 --> 0:11:41.640 using in that country and and use in that country 0:11:41.920 --> 0:11:43.959 pleading with us to come back. So the board with 0:11:44.080 --> 0:11:45.840 us decides should we go back or not? And I 0:11:45.840 --> 0:11:48.600 mean it's like a life wort deficio almost in some ways. 0:11:48.640 --> 0:11:50.520 On the one hand, people want to use the product 0:11:50.600 --> 0:11:53.440 to connect and it's super valuable. On the folk side, 0:11:53.480 --> 0:11:55.520 we know that the state uses the product to try 0:11:55.559 --> 0:11:58.240 to find people who are gay, And like which society 0:11:58.280 --> 0:12:00.360 you kind of go on, right, you deny people product 0:12:00.400 --> 0:12:02.760 that's really important to them, or do you allow them 0:12:02.800 --> 0:12:06.800 to have the product at risk their security? Really tough issue. 0:12:07.080 --> 0:12:08.719 I won't rebuild the country it's in because I don't 0:12:08.760 --> 0:12:11.480 think that's appropriate. But like that kind of describes how 0:12:11.559 --> 0:12:14.920 critical Grinder is to so many people, and this amazing 0:12:15.120 --> 0:12:17.840 product that it is for that community. Now, you've gone 0:12:17.840 --> 0:12:20.559 through one spack process with Shift, and I know you're 0:12:20.559 --> 0:12:22.760 trying to get Grinder over the finish over the finish 0:12:22.800 --> 0:12:25.720 line now, but how are you thinking about that given 0:12:26.200 --> 0:12:30.880 pretty dreadful market dynamics out there and and a tough environment. Yeah, 0:12:31.000 --> 0:12:33.320 it's I mean, spack is great in that kind of 0:12:33.360 --> 0:12:36.240 situation because it's a guaranteed way to get the transaction 0:12:36.280 --> 0:12:38.920 done right. You are not depending on market conditions. Um 0:12:39.000 --> 0:12:42.680 and Grinder's partner for for the stock transaction is a 0:12:42.800 --> 0:12:45.240 very strong stock. There's a for purchase agreement in the 0:12:45.280 --> 0:12:48.640 transaction which insuresn't there's no need for any capital to 0:12:48.679 --> 0:12:51.480 come into the transaction, and redemptions are not an issue. 0:12:51.640 --> 0:12:55.480 The last many many of the most recent spects haven't 0:12:55.520 --> 0:12:58.680 done well. That most spots have not done well, no question. 0:12:59.080 --> 0:13:01.800 But there are about two dozen spacts in the last 0:13:01.840 --> 0:13:04.560 twelve months are doing very well, and but they share 0:13:04.600 --> 0:13:07.559 one trait. They're all profitable businesses. So Grinder kind of 0:13:07.559 --> 0:13:09.880 falls into that bucket as well. It's a very profitable 0:13:09.920 --> 0:13:12.880 business and no one is selling in this transaction, So 0:13:12.920 --> 0:13:15.520 all the current owners of Grinder are going to roll 0:13:15.559 --> 0:13:18.680 over and continue holding the business. UM, so we feel 0:13:18.679 --> 0:13:22.280 pretty good about the transactions from that perspective, grind, I 0:13:22.320 --> 0:13:25.160 mean a spost is the mechanism or getting the transaction 0:13:25.240 --> 0:13:27.959 done so we can become a public company. I think 0:13:28.000 --> 0:13:29.880 the outcome will be the same way that we've had 0:13:29.920 --> 0:13:32.360 done a regular way at PO or a stock transaction. 0:13:32.559 --> 0:13:36.600 You're one of very few openly gay CEOs, certainly as 0:13:36.640 --> 0:13:39.600 it comes to public companies. Is there a precedent that 0:13:39.679 --> 0:13:42.800 you want to set here or a message that you 0:13:42.840 --> 0:13:47.200 want to send. I'm very fortunate and I think, look, 0:13:47.400 --> 0:13:49.640 people should believe that anything is possible, right Like one 0:13:49.640 --> 0:13:52.640 of my core values as an operator is that impossible 0:13:52.679 --> 0:13:54.880 things are possible. And my whole life is almost an 0:13:54.920 --> 0:13:57.040 example of that. Where I was born in the Soviet Union, 0:13:57.480 --> 0:13:59.480 UM came to the U S as a as a 0:13:59.520 --> 0:14:02.480 young teenager to go to prep school. Now this is 0:14:02.480 --> 0:14:05.720 a second company. I'm going to take public incredible things 0:14:05.720 --> 0:14:08.720 that are achievable as long as you work hard and UM. 0:14:08.760 --> 0:14:13.240 You know, for those people who are you know, part 0:14:13.240 --> 0:14:16.959 of the ludic community living in countries where they feel 0:14:16.960 --> 0:14:19.680 like they're being marginalized or they can't be out, things 0:14:19.720 --> 0:14:22.200 are going to get better. Because that's the direction that 0:14:22.240 --> 0:14:25.760 the world is heading into kind of every day, and 0:14:25.800 --> 0:14:27.760 we're really really fortunate to be living in a country 0:14:27.760 --> 0:14:30.680 where we can be ourselves and not be under threat 0:14:30.720 --> 0:14:33.600 all the time. And how are you thinking about monetization 0:14:34.000 --> 0:14:40.080 and boosting the opportunities that Grinder has already explored. Subscriptions 0:14:40.080 --> 0:14:43.440 and ads are of course the money makers. Yeah, we 0:14:43.480 --> 0:14:45.360 make money in two ways. We have ads in the 0:14:45.360 --> 0:14:49.200 product and we have subscriptions. Are percentage of users that 0:14:49.240 --> 0:14:52.560 are paying uses is actually not that high, it's about 0:14:52.560 --> 0:14:56.280 six percent versus you know, Bumbles at I think nine 0:14:56.320 --> 0:14:59.520 percent and Matches at eighteen um, so we have a 0:14:59.560 --> 0:15:03.280 huge you need to grow the paid user base. One 0:15:03.280 --> 0:15:04.720 of the ways we're going to do that is by 0:15:04.720 --> 0:15:08.840 building more adjacent features that people then want to pay for. 0:15:09.200 --> 0:15:11.880 Grind has been behind in that regard. It's only recently 0:15:11.880 --> 0:15:15.720 started to monetize its functionality and add new functionality. So 0:15:16.360 --> 0:15:18.600 for example, we just recently launched boost, which has been 0:15:18.640 --> 0:15:21.560 a very popular feature. Doing more things like that I 0:15:21.560 --> 0:15:24.560 think will be really important. And then with ads, obviously 0:15:24.600 --> 0:15:27.600 there's a huge oputy to have more relevant ads. When 0:15:27.640 --> 0:15:30.640 we have ads that are relevant to our community, they're 0:15:30.680 --> 0:15:34.320 actually very effective and they service the community really well, 0:15:34.640 --> 0:15:38.080 for example with with health related ads, and so my 0:15:38.200 --> 0:15:40.160 focus will be to ensure that the ad quality is 0:15:40.200 --> 0:15:43.520 really good and it really enables the community use the 0:15:43.560 --> 0:15:45.480 product in a in a good way if they don't 0:15:45.480 --> 0:15:49.320 want to take her all right, George Harrison incoming, CEO 0:15:49.560 --> 0:15:52.880 of Grinder, Thanks so much for stopping by. We'll keep watching. 0:15:53.120 --> 0:15:55.400 Thank you for having me all right. Coming up, FedEx's 0:15:55.400 --> 0:15:59.880 guidance springs doom and gloom to the markets and especially 0:16:00.040 --> 0:16:02.240 commerce starcks. We're going to tell you more about that. 0:16:02.320 --> 0:16:17.720 Next US is Bloomberg. One story you don't want to 0:16:17.760 --> 0:16:21.560 miss in Bloomberg's Big Take this Thursday, about how a 0:16:21.760 --> 0:16:26.240 Chinese spy tried to steal gees secret but got caught 0:16:26.240 --> 0:16:28.480 by the US and gave the world an unprecedented glimpse 0:16:28.520 --> 0:16:31.680 into China spy system. Here's how the arrest of a 0:16:31.800 --> 0:16:37.120 burned out intelligence officer exposed an economic espionage machine. When 0:16:37.120 --> 0:16:40.360 a Chinese spy was extradited to the US, the FBI 0:16:40.480 --> 0:16:44.480 got his hands on a remarkable resource, his iPhone. It 0:16:44.600 --> 0:16:48.360 shed valuable light on how Asia's largest economy steals top 0:16:48.400 --> 0:16:52.440 secret technology. Chuian Jun was an agent of China's Minister 0:16:52.520 --> 0:16:54.880 of State Security when he was arrested in Brussels. In 0:16:56.040 --> 0:16:58.520 how could the FBI prove it well? On his iPhone 0:16:58.600 --> 0:17:01.640 was an official form that listed his job as deputy 0:17:01.640 --> 0:17:04.440 Division director at the MSS. It might as well have 0:17:04.520 --> 0:17:08.639 said profession spy. Shoe's main job was stealing defense and 0:17:08.680 --> 0:17:13.360 aviation innovations from firms such as General Electric. For instance, 0:17:13.520 --> 0:17:17.199 a colleague distracted a British engineer over a banquet in Nanjing. 0:17:17.440 --> 0:17:20.240 While she was upstairs in his hotel room copying the 0:17:20.240 --> 0:17:23.720 content of his laptop, Shoe said he needs three hours 0:17:23.880 --> 0:17:29.440 speeded up. Became the response between messages to seemingly extramarital lovers. 0:17:29.680 --> 0:17:33.320 Shoe are specialists from China's top aviation companies. What sort 0:17:33.359 --> 0:17:36.719 of intel they needed? Then set about cultivating the sources 0:17:36.720 --> 0:17:39.840 who could provide it. One such source was a ge 0:17:40.040 --> 0:17:44.280 engineer who would ultimately precipitate his downfall. After being rumbled 0:17:44.280 --> 0:17:47.880 by the FBI, the engineer turned double agent and offered 0:17:47.920 --> 0:17:50.359 to meet Sue at a cafe in Brussels. It was, 0:17:50.440 --> 0:17:53.600 of course set up. En route to that fateful meeting, 0:17:53.680 --> 0:17:56.000 Shoe messaged his wife that there was a USB stick 0:17:56.080 --> 0:17:58.400 hidden at home for which should be given. The password 0:17:58.440 --> 0:18:01.120 was something to happen to him, She responded, Oh my god, 0:18:01.200 --> 0:18:04.160 don't scare me like this. The next day he was arrested. 0:18:05.080 --> 0:18:08.640 He now resides in Ohio jail, facing up to sixty 0:18:08.720 --> 0:18:14.520 years in prison. Quick takes alex web for that, and 0:18:14.560 --> 0:18:17.119 of course you could check out the Big Take Thursday. 0:18:17.600 --> 0:18:20.760 Here are some other stories were following. Shopify is now 0:18:21.000 --> 0:18:24.760 changing its compensation practices to let staff decide how much 0:18:24.760 --> 0:18:27.679 of their pay comes in cash versus equity, with the 0:18:27.720 --> 0:18:32.240 ability to withdraw equity immediately. This is Volatility continues to 0:18:32.320 --> 0:18:35.680 beat down shares of tech companies. The Canadian e commerce 0:18:35.720 --> 0:18:40.720 firm saw its own share price fall this year, and 0:18:40.960 --> 0:18:44.600 Google cloud making some changes, with plans to unfreeze hiring 0:18:44.640 --> 0:18:47.960 by October, reversing a pause that was set back in July. 0:18:48.320 --> 0:18:51.320 This according to Business Insider, which cited an internal memo 0:18:51.440 --> 0:18:55.320 from Google Clouds Vice president of Technical Infrastructure Brad Calder, 0:18:55.760 --> 0:19:08.960 saying then it must clarify its priorities. Welcome back to 0:19:08.960 --> 0:19:11.600 Boomore Technology. I'm emily changing in San Francisco. The new 0:19:11.640 --> 0:19:15.679 iPhone fourteen is out the latest generation of Apple's handset 0:19:15.960 --> 0:19:19.119 in stores now in the high end pro coming in 0:19:19.119 --> 0:19:22.720 at a thousand dollars base price. Apple isn't raising process 0:19:22.720 --> 0:19:25.040 from last year this year, perhaps to counter the pain 0:19:25.080 --> 0:19:28.520 of rising inflation, but still more customers pay up, are 0:19:28.560 --> 0:19:31.760 at ludlow. Back in New York with the dates, will 0:19:31.840 --> 0:19:34.520 they add that, yeah, I mean, this is a global 0:19:34.720 --> 0:19:38.040 rollout of the iPhone fourteen, next generation of Apple watches. 0:19:38.160 --> 0:19:40.920 But here in New York City, Apple CEO Tim Cook, 0:19:41.200 --> 0:19:43.520 He's been in town, he's been on the Upper West side, 0:19:43.560 --> 0:19:45.520 he's been on the East side, he's been on Fifth 0:19:45.520 --> 0:19:48.920 Avenue meeting customers, and there seem to be excitement, there 0:19:48.920 --> 0:19:51.800 seems to be demand. But the question the streets asking 0:19:52.080 --> 0:19:55.080 will it fuel a global wave of upgrades? Will it 0:19:55.200 --> 0:19:58.000 fuel a boost to Apple sales? Let's bring up this 0:19:58.040 --> 0:20:00.600 pie chart, Mrs Director, because we need to contin actualize 0:20:00.640 --> 0:20:03.879 how important the iPhone is in the context of overall sales. 0:20:03.920 --> 0:20:08.679 It's more than right now. Apple was reserved the most 0:20:08.840 --> 0:20:12.960 important new features, the biggest upgrades for that most expensive handset. 0:20:12.960 --> 0:20:14.480 And you know, I've been talking all week about the 0:20:14.560 --> 0:20:18.280 data for early orders or pre orders, which shows that 0:20:18.480 --> 0:20:22.280 actually there is demand for that most expensive handset. The 0:20:22.280 --> 0:20:25.080 other story we've been talking about is the evidence that 0:20:25.240 --> 0:20:29.560 actually demand for consumer electronics is really slowing down. Now, 0:20:29.680 --> 0:20:32.520 let's look at the numbers for iPhone sales over the 0:20:32.600 --> 0:20:34.359 last few years. I'm just I'm going to walk all 0:20:34.359 --> 0:20:37.000 the way over here, m and go straight to one. 0:20:37.080 --> 0:20:41.040 That was an incredible year for Apple, right record iPhone sales. 0:20:41.640 --> 0:20:45.439 The thing is, the early data also shows that the 0:20:45.520 --> 0:20:49.560 demand for the highest price point handset with the nicest, 0:20:49.840 --> 0:20:53.800 the fanciest, the most high spect features is actually outdoing 0:20:53.840 --> 0:20:56.520 what we saw in one as well. So there's debate 0:20:56.560 --> 0:20:59.080 about this. There's actually a guy who works at Bloomberg 0:20:59.080 --> 0:21:02.440 Intelligence here in New York. I think you might be 0:21:02.480 --> 0:21:04.520 about speech to him. He might not see it the 0:21:04.560 --> 0:21:06.640 way that some of the streets sees it in terms 0:21:06.680 --> 0:21:09.679 of this big wave of upgrades that's coming, but some 0:21:09.760 --> 0:21:13.760 of the street does. All right, I'd love the thank you. 0:21:14.000 --> 0:21:16.200 I want to continue this conversation with Carolyn and Milan 0:21:16.280 --> 0:21:19.919 as of creative Strategies and our very own Bloomberg Intelligence 0:21:19.920 --> 0:21:25.320 senior analyst on ra Grana, who covers Apple for US. UM. 0:21:25.560 --> 0:21:27.520 Carolyn and I'll start with you, since we spoke to 0:21:27.720 --> 0:21:30.640 last week from the Apple event we got your sort 0:21:30.640 --> 0:21:32.879 of preview. Take there. Now that you've seen some of 0:21:32.920 --> 0:21:36.359 this pre order data, how good does it look? It 0:21:36.400 --> 0:21:39.640 doesn't surprise me that we see a skew of sales 0:21:39.720 --> 0:21:42.840 towards the higher end of the portfolio. That's always the 0:21:42.880 --> 0:21:46.520 case with pre orders. Usually the customers that pre order 0:21:46.640 --> 0:21:51.119 our early tech early adopters higher income level, So you 0:21:51.280 --> 0:21:54.520 always see that, and I always warrant people not to 0:21:54.680 --> 0:21:57.080 judge the kind of a long tail of the rest 0:21:57.080 --> 0:22:00.760 of a portfolio just by pre orders. I think what 0:22:00.880 --> 0:22:03.600 Apple has done though this year with the pro line 0:22:04.240 --> 0:22:08.200 is appealing to a broader audience than just the camera lovers. 0:22:08.280 --> 0:22:12.560