WEBVTT - Snap Earnings and Nikola CEO on 2023 Outlook 0:00:13.920 --> 0:00:16.480 I'm Caroline hired of Bloomberg's World Hoarders in New York 0:00:17.000 --> 0:00:19.680 and I made Ludlow in San Francisco. This is Bloomberg 0:00:19.680 --> 0:00:22.119 Technology and Carolina a great month and then has that 0:00:22.200 --> 0:00:24.840 one d best since July ahead of a key FED meeting. 0:00:25.040 --> 0:00:27.560 But right now all about earnings, and it's all about 0:00:27.600 --> 0:00:31.240 the share reaction after earnings. And first and foremost, we 0:00:31.320 --> 0:00:33.879 therefore got to dive into snap falling hard after it 0:00:33.920 --> 0:00:40.280 forecasts is first ever quarterly revenue decline. Then my conversation 0:00:40.400 --> 0:00:43.680 with the Nicholas CEO, Michael lost Seller is the company 0:00:43.760 --> 0:00:48.080 reboots its electric truck offering and the Unicorn trying to 0:00:48.159 --> 0:00:52.640 bring back the Dodo bird. We talked to Colossal Biosciences, 0:00:53.120 --> 0:00:54.880 but first we want to get into the devil of 0:00:54.920 --> 0:00:58.120 the detail insider Intelligence. Principal analyst Jasmine and Burger's with 0:00:58.240 --> 0:01:01.360 us for more on STAPs earnings. And you lead the 0:01:01.400 --> 0:01:07.840 coverage of influencer marketing of social commerce. You focus on TikTok, Instagram, YouTube, Snapchat, Twitter, Facebook, 0:01:07.840 --> 0:01:11.040 I need not go on you know where the eyeballs are. 0:01:11.120 --> 0:01:14.759 What notices for me every time Snapchat does really well 0:01:14.800 --> 0:01:16.959 in terms of the amount of users. It has the 0:01:17.160 --> 0:01:20.240 control has the thirteen year olds to the thirty year olds, 0:01:20.280 --> 0:01:23.199 the amount of impressions they get. Why can't they convert 0:01:23.240 --> 0:01:27.320 it into money? Well, you're absolutely right. I mean, snapchats 0:01:27.360 --> 0:01:30.760 audience and its user growth is absolutely not its problem. 0:01:30.880 --> 0:01:34.559 It has a strong hold over gen Z, over teams 0:01:34.600 --> 0:01:38.199 who really love the platform. It's very different from any 0:01:38.200 --> 0:01:42.120 other social platform. It's more focused on private sharing. It 0:01:42.200 --> 0:01:45.679 has also, you know, invested heavily into augmented reality, which 0:01:45.720 --> 0:01:49.080 its users love. But the reality is, at this point 0:01:49.240 --> 0:01:51.880 most of its user growth is actually coming from the 0:01:51.880 --> 0:01:54.280 rest of the world, and the rest of the world 0:01:54.320 --> 0:01:57.760 monetizes at a much lower rate than the US, and 0:01:58.080 --> 0:02:02.400 that has hampered it's reven your growth as well, Jasmine 0:02:02.400 --> 0:02:04.920 the range of two to ten percent drop in top 0:02:04.960 --> 0:02:07.720 line for the current period. Does that tell you Snap 0:02:07.760 --> 0:02:10.839 has no visibility on the ad market or Snap has 0:02:10.840 --> 0:02:16.040 no visibility on how their tweaks around direct response is going. Yeah, 0:02:16.120 --> 0:02:19.360 I mean I think it's you know, a pretty difficult 0:02:19.440 --> 0:02:21.760 sign for how the ad market is doing right now. 0:02:21.800 --> 0:02:24.040 But I think the reality is is we have to 0:02:24.120 --> 0:02:27.160 be ready for a period of much more modest growth 0:02:27.200 --> 0:02:29.960 for social media in general. There are a lot of 0:02:30.040 --> 0:02:33.440 challenges right now to social ad businesses, whether that is 0:02:33.440 --> 0:02:38.480 the privacy policy changes that have really impacted particularly performance advertisers, 0:02:38.520 --> 0:02:41.480 as well as the volatile economic conditions. And you know, 0:02:41.639 --> 0:02:46.079 these challenges clearly continued to persist throughout two and I'm 0:02:46.080 --> 0:02:49.399 expecting there to be more challenges and much more competition 0:02:49.440 --> 0:02:53.480 ahead as well. One headline on the terminal is about 0:02:53.520 --> 0:02:55.960 the forecast for the drop in revenue. The other headline 0:02:56.000 --> 0:02:59.519 is Snapchat Plus subscription draws more than two million users. 0:02:59.560 --> 0:03:02.560 The stock down thirteen and a half percent in after hours. 0:03:02.680 --> 0:03:07.120 Does anyone care about Snapchat Plus? Well, you know, Snapchat 0:03:07.200 --> 0:03:09.840 users care about Snapchat Plus. I think it's you know, 0:03:10.040 --> 0:03:13.520 a feature that has really been able to draw in 0:03:13.560 --> 0:03:16.480 more engagement for a Snapchat. Whether it's going to be 0:03:16.520 --> 0:03:19.600 a revenue boon is still an open question. I think, 0:03:19.639 --> 0:03:21.639 you know, more it will be a way for them 0:03:21.680 --> 0:03:25.000 to keep their users engaged and keep them happy on 0:03:25.080 --> 0:03:28.920 Snapchat and and really just using the app more so 0:03:29.120 --> 0:03:32.480 users like it. Let's talk about how they can convert 0:03:32.560 --> 0:03:35.200 the advertisers to liking. Is it as you say that 0:03:35.240 --> 0:03:37.960 they need to just drive more conversion, more money from 0:03:37.960 --> 0:03:41.240 the international growth or how can they start proving that 0:03:41.280 --> 0:03:45.240 the direct response is really where the American purchaser needs 0:03:45.280 --> 0:03:48.920 to be. Yeah, I think one thing for Snapchat, of course, 0:03:48.920 --> 0:03:51.800 it's a much smaller platform, so it has been more 0:03:51.880 --> 0:03:55.760 impacted by a lot of these challenges. One interesting thing 0:03:55.840 --> 0:03:58.960 to note with Snapchat is that it is incredibly highly 0:03:59.000 --> 0:04:02.240 associated with augmented reality, but it actually only makes a 0:04:02.320 --> 0:04:05.280 fraction of its ad revenues. So there's a lot of 0:04:05.400 --> 0:04:08.560 challenges that it has to you know, rise to this year, 0:04:08.840 --> 0:04:11.920 and one of them is really helping advertisers to understand 0:04:11.920 --> 0:04:14.360 the platform and how to use the platform and its 0:04:14.400 --> 0:04:19.600 features to be able to reach those consumers. And let's 0:04:19.640 --> 0:04:21.960 do the read across the ripple effect, the fact that 0:04:22.040 --> 0:04:25.480 metas trading lower pinterest and sympathy. Is that the right 0:04:25.560 --> 0:04:28.920 view to take that this is something industry wide or 0:04:29.000 --> 0:04:31.480 is this idiosyncratic because I'm going to give another key 0:04:31.560 --> 0:04:33.600 name that's also better an awful lot or not just 0:04:33.960 --> 0:04:37.320 a are but VR. Yeah, I mean I think this, 0:04:37.640 --> 0:04:40.839 These challenges really are affecting all of these social platforms, 0:04:40.880 --> 0:04:43.400 and you know, I don't think it's wrong to be 0:04:43.520 --> 0:04:46.720 worried about the state of social media advertising right now. 0:04:46.760 --> 0:04:50.480 I mean, at Insider Intelligence, we're actually forecasting metas first 0:04:50.560 --> 0:04:54.200 ever ad revenue client decline for two So I think 0:04:54.240 --> 0:04:57.680 that tells you kind of the state of social advertising 0:04:57.760 --> 0:05:01.760 right now. Jazzmine, we've been covering a lot recently Twitter 0:05:01.920 --> 0:05:05.159 right and its aspirations to go from around two million 0:05:05.160 --> 0:05:08.800 installed user base to about while a billion. Maybe my 0:05:08.920 --> 0:05:11.239 question is when you look at Twitter, you look at Snap, 0:05:11.839 --> 0:05:14.760 is there growth there? How do they grow to be 0:05:14.839 --> 0:05:18.440 more meaningfully global, to have much bigger factors of audience 0:05:18.480 --> 0:05:23.159 that use their platforms well, Twitter of course is unique 0:05:23.200 --> 0:05:25.400 and that a lot of its issues right now are 0:05:25.480 --> 0:05:29.040 are self inflicted. And the Insider Intelligence we're actually expecting 0:05:29.560 --> 0:05:32.840 Twitter's user base to decline both in the US and worldwide. 0:05:33.880 --> 0:05:37.039 Four We're expecting a decline of about thirty two million 0:05:37.200 --> 0:05:40.719 monthly users worldwide. So it's going to be an uphill 0:05:40.800 --> 0:05:44.039 battle really for Twitter to be able to grow its 0:05:44.120 --> 0:05:46.600 user base. I do think that there is an opportunity 0:05:46.640 --> 0:05:50.159 to be able to increase engagement among users as long 0:05:50.160 --> 0:05:53.359 as Twitter is able to hit on features that really 0:05:53.400 --> 0:05:56.040 appeal to its audience, and that is something that they 0:05:56.080 --> 0:05:59.840 haven't been able to do as if yet. All Right, well, 0:05:59.839 --> 0:06:02.839 can continued to track snapshare reaction in after hours throughout 0:06:02.839 --> 0:06:06.560 the show, Insider Intelligence principal analysts Jasmine Enberg, thank you 0:06:06.680 --> 0:06:17.480 very much. The d o J is looking into Tesla's 0:06:17.520 --> 0:06:20.800 autopilot and self driving claim to the ev maker confirmed 0:06:20.800 --> 0:06:24.120 in a regulatory filing it's received requests for documents from 0:06:24.120 --> 0:06:27.479 the US Justice Department. It's looking at claims the company 0:06:27.520 --> 0:06:31.440 has made about features that it markets as autopilot and 0:06:31.560 --> 0:06:34.159 for self driving or FSD, and it's all part of 0:06:34.160 --> 0:06:38.960 growing scrutiny around Tesla's technology. Now Elon Musk company said, quote, 0:06:39.200 --> 0:06:42.320 we have experienced and we expect to continue to face 0:06:42.480 --> 0:06:46.560 claimed and regulatory scrutiny around what the company characterizes as 0:06:46.640 --> 0:06:51.440 claimed failures or alleged misrepresentations. Tesla said it's unaware of 0:06:51.520 --> 0:06:55.320 any government agency with an ongoing investigation that's reached the 0:06:55.400 --> 0:06:58.760 conclusion any wrongdoing has occurred. Now on the company's most 0:06:58.760 --> 0:07:02.279 recent earnings, called where it would be expectations, must said 0:07:02.320 --> 0:07:04.880 that every time Tesla sells a car, it quote has 0:07:04.920 --> 0:07:08.040 the ability to have full self driving enabled, which he 0:07:08.080 --> 0:07:14.560 sees as quote a tremendous upside potential. Now, Caroline, that's 0:07:14.560 --> 0:07:17.120 the d o J. It was just Friday, where Bloomberg 0:07:17.160 --> 0:07:21.600 reported the SEC is also looking specifically at comments Musk 0:07:21.640 --> 0:07:26.000 has made around this area of self driving as part 0:07:26.000 --> 0:07:29.480 of its broader investigation. This regulatory overhang, though, seems to 0:07:29.520 --> 0:07:32.960 not be as important to shareholders as ultimately the fundamentals 0:07:32.960 --> 0:07:35.880 of the business, the prices of the cars, because today 0:07:36.120 --> 0:07:39.680 we actually saw the shares rise, yes, mid risk appetite, 0:07:39.720 --> 0:07:43.560 but also despite this d J headline and since its earnings, 0:07:43.600 --> 0:07:46.239 real momentum for Tesla. So I'm gonna move on actually 0:07:46.240 --> 0:07:48.960 Caroline to another ev maker because earlier today here in 0:07:48.960 --> 0:07:51.560 San Francisco, I caught up with Michael lo Sheller, who 0:07:51.640 --> 0:07:54.880 is the latest CEO of Nicola, who was here in 0:07:54.960 --> 0:07:57.400 town for the Bloomberg any F conference, and after what 0:07:57.520 --> 0:08:00.400 was frankly a tough year last year for Nicola, I 0:08:00.440 --> 0:08:03.920 asked going to be a chance to reset. Here's what 0:08:03.960 --> 0:08:06.960 he told me. So key message from our side will 0:08:07.000 --> 0:08:09.080 be we have the trucks on the one side, zero 0:08:09.080 --> 0:08:11.240 mission trucks. We started last year with a launch of 0:08:11.240 --> 0:08:14.679 the battery electric truck, launched this year the fuel sil truck, 0:08:14.720 --> 0:08:16.680 and we want to make sure that also the energy 0:08:16.760 --> 0:08:18.880 infrastructure is there. So in a way we want to 0:08:18.880 --> 0:08:21.400 make sure we have an integrated solution, you can call it. 0:08:21.440 --> 0:08:23.360 We want to put the chicken in the egg together. 0:08:24.320 --> 0:08:27.840 A big focus of Bloomberg U energy finances research around 0:08:27.880 --> 0:08:31.960 batteries and nichol is interesting. Multiple sources of cell supply. 0:08:32.520 --> 0:08:35.800 But an acquisition of Romeo, how how has that gone? 0:08:36.000 --> 0:08:38.480 You know, how do you feel about your supply? Going 0:08:38.480 --> 0:08:42.800 into very important decision for us to acquire all neal 0:08:42.880 --> 0:08:46.240 power because obviously the battery is a very important element 0:08:46.320 --> 0:08:49.520 component of the truck, and I think the vertical integration 0:08:49.720 --> 0:08:53.600 is so important. Now we can control the battery, optimize it, 0:08:53.720 --> 0:08:57.559 improve it. We also will move from Cyprus to Coolist 0:08:57.600 --> 0:09:00.280 so that everything is together and our stay of the 0:09:00.360 --> 0:09:03.240 art facility. So I think it's a big benefit. And 0:09:03.320 --> 0:09:04.960 of course there's a lot to do. We can on 0:09:05.000 --> 0:09:07.880 the battery and improve it further. I want to get 0:09:07.920 --> 0:09:10.880 to the kind of hydrogen infrastructure, but battery electrics where 0:09:10.880 --> 0:09:14.080 you've started. Um, you know that the guidance was just 0:09:14.120 --> 0:09:18.960 short three hundred deliveries on the battery electric truck in 0:09:20.840 --> 0:09:23.920 Romeo is an interesting situation because before you bought them, 0:09:23.960 --> 0:09:27.760 they were offering these kind of supply of seals packs 0:09:27.760 --> 0:09:30.120 at a discount, then you acquired them and brought them in. 0:09:30.600 --> 0:09:33.640 How are the economics of that transaction worked out? Is it? 0:09:33.720 --> 0:09:36.600 Is it the sort of most prudent financial decision to 0:09:36.679 --> 0:09:39.120 just go out and buy your own sell supply rather 0:09:39.160 --> 0:09:41.640 than do deals with the parties. First of all, it 0:09:41.679 --> 0:09:43.880 was important for us to do the vertical integration. It's 0:09:44.000 --> 0:09:46.240 much better that we have it in our hands, and 0:09:46.280 --> 0:09:49.040 obviously we will improve the cross position going forward. Right 0:09:49.400 --> 0:09:52.880 instead of having negotiations with suppliers and have lots of things, 0:09:52.880 --> 0:09:55.679 so to own the battery is really important for us 0:09:55.679 --> 0:09:57.240 and makes a lot of sense that I feel very 0:09:57.280 --> 0:10:02.840 good about that. I've been covering Nickless since early and 0:10:02.880 --> 0:10:05.880 a part of the story that gets discussed less is 0:10:06.200 --> 0:10:08.920 you're not just planning to make a hydrogen fuel cell 0:10:09.200 --> 0:10:12.880 semi truck. You're planning to build out the infrastructure to 0:10:12.960 --> 0:10:16.760 fuel the trucks literally hydrogen supply. What is the plan 0:10:17.040 --> 0:10:20.199 presently for that? And that's a very important point. So 0:10:20.280 --> 0:10:24.600 last week we actually announced all our hydrogen energy related 0:10:24.720 --> 0:10:27.640 things and we umbrella everything under the name of Hyler. 0:10:27.960 --> 0:10:30.440 So I think that's very important to have a brand 0:10:30.520 --> 0:10:33.480 for our hydrogen energy activities and what we want to 0:10:33.520 --> 0:10:36.280 do at Nicola is to offer the truck, so the 0:10:36.320 --> 0:10:38.720 fuel sure truck, but every few side truck of course 0:10:38.760 --> 0:10:42.160 needs hydrogen. And the customers are expecting that we offer books, 0:10:42.200 --> 0:10:45.440 and I think bringing these things together is really important 0:10:45.720 --> 0:10:47.200 and at the end of the day, I'm sure the 0:10:47.240 --> 0:10:51.760 customer will value that a lot. Great interview there with 0:10:51.840 --> 0:10:55.199 the CEO of Nicola. Now let's turn to some earnings 0:10:55.200 --> 0:10:56.920 that we've just been getting again, Thick and Fast and 0:10:56.960 --> 0:10:59.280 electronic arts one of them. The video game publisher behind 0:10:59.280 --> 0:11:02.960 the franchises, Fever, just gave a forecast for next bookings 0:11:03.000 --> 0:11:05.480 in the fourth quarter that fell short of analyst estimates. 0:11:05.640 --> 0:11:08.000 This is the company's holiday releases that they failed to 0:11:08.040 --> 0:11:11.360 offset a broader decline in gaming revenue or down by 0:11:11.360 --> 0:11:14.200 seven percent after ours as COVID related game delays pushed 0:11:14.240 --> 0:11:19.280 several anticipated titles into three including as remake of the 0:11:19.320 --> 0:11:24.040 two thousand and eight survival horror game Dead Space coming up. 0:11:24.240 --> 0:11:28.040 Sony facing some challenges with its vr head site, one 0:11:28.080 --> 0:11:30.160 of them, of course, being all games are you gonna 0:11:30.200 --> 0:11:31.920 be playing on it? What it all means for the 0:11:32.000 --> 0:11:36.679 virtual reality sectors fate next slush teachers rejoice open a 0:11:36.760 --> 0:11:39.880 eyes got a tool to help classify content as AI 0:11:39.960 --> 0:11:43.800 written but passed off as human or on that next 0:11:44.320 --> 0:11:54.920 this is Blomberg. There might be a relief to some 0:11:55.080 --> 0:11:58.360 teaching staff out there because open ai is coming out 0:11:58.360 --> 0:12:01.200 with a new tool to tell when text is written 0:12:01.240 --> 0:12:04.160 in AI, the company behind chat chypt. Of course it's 0:12:04.160 --> 0:12:06.800 going to flag content written by its products as well 0:12:06.800 --> 0:12:09.800 as other AI tools, but open ai does say that 0:12:09.800 --> 0:12:12.640 the tool quote still has a number of limitations, should 0:12:12.640 --> 0:12:15.319 be used as a complement to other methods of determining 0:12:15.480 --> 0:12:17.760 the source of text. It will be available as a 0:12:17.760 --> 0:12:21.440 web ab and available to totally teachers. Let's bring in 0:12:21.600 --> 0:12:24.079 them bugs, Dina bas for more. I mean a lot 0:12:24.240 --> 0:12:28.600 of the handwringing around chat chypt was around teaching staff 0:12:28.600 --> 0:12:31.280 and the fact that students are going to busy basically 0:12:31.320 --> 0:12:35.480 getting chat gypt to write their studies. Absolutely, I don't 0:12:35.480 --> 0:12:37.840 know if we should be excited about the extent to 0:12:37.880 --> 0:12:42.320 which our students embrace innovation, but yes, some of the 0:12:42.360 --> 0:12:45.800 earliest users of chat chypt were students who figured out 0:12:45.800 --> 0:12:47.320 that they could use it to do their homework and 0:12:47.320 --> 0:12:51.720 do their essays. Also employees, people that work using it, 0:12:51.840 --> 0:12:54.800 and people pretending to be humans. There's real worry about 0:12:54.880 --> 0:12:59.360 using it for misinformation for astroturfing campaigns. So open ai 0:12:59.440 --> 0:13:01.400 as well as the people have been working on ways 0:13:01.440 --> 0:13:04.920 to flag when content is AI generated as opposed to 0:13:05.000 --> 0:13:08.600 human author but not so fast. As you mentioned, open 0:13:08.640 --> 0:13:12.360 ai flag that it's a bit limited. Right now, they're 0:13:12.360 --> 0:13:17.040 only getting about a success rate and identifying AI generated content, 0:13:17.440 --> 0:13:20.120 and on some level, perhaps even more worrying, they're getting 0:13:20.120 --> 0:13:23.520 a nearly ten percent false positive rate. So something is 0:13:23.600 --> 0:13:26.480 human authored and it will be flagged as generated by 0:13:26.520 --> 0:13:29.440 the AI. Now imagine you're a high school student whose 0:13:29.760 --> 0:13:32.439 teacher is using this accuses you of cheating when you've 0:13:32.480 --> 0:13:36.920 actually written the essay yourself. Also not great. So you know, 0:13:36.920 --> 0:13:41.440 I appreciate that the underlying technology that powers chat GPT 0:13:41.600 --> 0:13:44.839 is complicated, but as best you can how does this work? 0:13:45.040 --> 0:13:48.840 How is it supposed to work? So all of the 0:13:49.080 --> 0:13:53.160 things that underli chat GPT are large language models that 0:13:53.200 --> 0:13:55.679 have been trained on the vast or ay of data 0:13:55.720 --> 0:13:59.000 from the Internet. So what open ai did here was 0:13:59.080 --> 0:14:02.600 also attempt to train and model. They took samples that 0:14:02.840 --> 0:14:05.800 they believed to be human authored, they labeled them as 0:14:05.880 --> 0:14:08.440 human author that they matched You know, a prompt to 0:14:08.520 --> 0:14:11.040 the output, and they did the same thing with things 0:14:11.120 --> 0:14:14.680 that were AI authored and trying to use that to 0:14:14.880 --> 0:14:19.520 teach an artificial intelligence model to guess for itself, predict 0:14:19.520 --> 0:14:22.320 for itself which ones are human, which ones are not. 0:14:22.760 --> 0:14:25.880 Now you know some of the limitations here. It is 0:14:25.920 --> 0:14:29.800 not reliable on very short amounts of text. So open 0:14:29.840 --> 0:14:33.760 AI said below a thousand characters, it really can't do much. Um, 0:14:33.800 --> 0:14:36.400 if it's looking at a text where there's automatically a 0:14:36.480 --> 0:14:38.600 right answer, like they gave the example at the first 0:14:38.640 --> 0:14:41.680 thousand prime numbers, you can't tell the correct answer will 0:14:41.680 --> 0:14:44.520 be the same regardless of who is who's writing it. 0:14:44.760 --> 0:14:47.040 There's also, you know, people have been very smart about 0:14:47.080 --> 0:14:50.960 these things. There's ways to edit the AI generated content 0:14:51.040 --> 0:14:54.640 in order to evade this classification tool. And so you 0:14:54.880 --> 0:14:56.160 end up in a bit of a game of whack 0:14:56.200 --> 0:14:59.040 a mole where people figure out how to change the 0:14:59.200 --> 0:15:02.720 AI content to make it hard of a classifier to 0:15:02.760 --> 0:15:07.160 determine that it's written by about Bloomberg. Steena Bass, you 0:15:07.200 --> 0:15:10.520 have been across every single step of this story since 0:15:10.560 --> 0:15:14.240 the start. Unbelievable, great reporting. Thanks for joining. Now let's 0:15:14.280 --> 0:15:17.800 pivot a little bit Sony reduced projections for the initial 0:15:17.880 --> 0:15:21.960 launch of its PlayStation VR two headset drastically. That's according 0:15:22.240 --> 0:15:26.120 to sources. That's also as a result of week early 0:15:26.320 --> 0:15:28.440 pre orders. I want to bring in Bloomberg's Mark German 0:15:28.480 --> 0:15:31.080 all across the consumer electronics feed Mark, what have we 0:15:31.200 --> 0:15:34.800 learned about this kind of reset from Sony. Yes, so 0:15:34.880 --> 0:15:39.000 Bloomberg News reported uh this week that orders have been 0:15:39.040 --> 0:15:42.960 reduced for their new VR ps v R two headset. Now, 0:15:43.000 --> 0:15:46.200 this is a big deal slashing orders. It's right now 0:15:46.280 --> 0:15:48.600 the VR market does not have a lot of momentum 0:15:48.960 --> 0:15:52.400 Apples announcing it's headset in just a few months. But 0:15:52.480 --> 0:15:54.520 at the same time you have this report, you have 0:15:54.720 --> 0:15:57.640 Meta actually reducing the price, at least on a limited basis, 0:15:58.160 --> 0:16:00.920 of its Quest Pro headset by a few hundred dollars. 0:16:00.920 --> 0:16:04.240 From so, I think overall this is not so much 0:16:04.240 --> 0:16:08.200 a story about Sony but the virtual reality market in general. 0:16:08.280 --> 0:16:09.680 And this is why you see some of the other 0:16:09.760 --> 0:16:13.640 tech giants, including Apple, Samsung and Amazon really looking long 0:16:13.760 --> 0:16:17.360 term more at a R rather than VR. That's fascinating, Mark, 0:16:17.360 --> 0:16:19.520 because of course you bring our scooper to scoop on 0:16:19.840 --> 0:16:22.960 what Apple is thinking about at the moment. The question 0:16:22.960 --> 0:16:24.960 with Sony is whether it's the price point, whether the 0:16:24.960 --> 0:16:28.400 fact that it's basically only servicing its own PS five 0:16:28.800 --> 0:16:30.440 so it's a bit too much of a niche market. 0:16:30.480 --> 0:16:32.160 I'm interested is to what the read across four and 0:16:32.240 --> 0:16:34.760 Apple is for example, I mean, have they got enough content, 0:16:34.920 --> 0:16:37.560 enough content creation to make you want to splurge on 0:16:37.600 --> 0:16:42.240 these sorts of devices. Yes. So the Sony device, right, 0:16:42.480 --> 0:16:45.560 it's not too expensive if you compare the price point 0:16:45.640 --> 0:16:49.160 to Apples three thou dollars versus you know, sub five 0:16:49.520 --> 0:16:52.160 dollars for the VR headset. The problem is is that 0:16:52.200 --> 0:16:56.040 it requires, like you said, a PlayStation, right, there are 0:16:56.040 --> 0:16:58.360 still some people who want PlayStations who can't get their 0:16:58.360 --> 0:17:01.240 hands on PlayStations. So this is a device for device 0:17:01.280 --> 0:17:03.480 that you can't even get your hands on in some cases, 0:17:03.760 --> 0:17:06.320 and it only works with that product. The difference being 0:17:06.400 --> 0:17:08.879 that the Meta headset, the Apple headset, some of the 0:17:08.920 --> 0:17:13.360 headsets from other providers, those are all completely stand abone devices. Right, 0:17:13.440 --> 0:17:18.240 So Sony is limiting use cases, usability and the addressable 0:17:18.240 --> 0:17:21.280 market right from the get go, just by including that, 0:17:21.840 --> 0:17:26.719 you know, required compatibility and required use with the PlayStation, right, 0:17:26.920 --> 0:17:32.280 Apples fully standalone requiring phone. Mark. We've covered Apple that 0:17:32.680 --> 0:17:34.800 we've covered, so let's do Samsung as well. Why not 0:17:34.920 --> 0:17:38.480 big week for them? You're excited about what's to come. No, 0:17:38.600 --> 0:17:42.200 I'm not. Actually, I think Samsung's new devices this week 0:17:42.240 --> 0:17:46.280 are actually going to be pretty marginal. We're talking minor 0:17:46.400 --> 0:17:50.399 camera improvements on the two base models. We're talking about 0:17:50.440 --> 0:17:52.440 a jump from a hundred eight megapixels to two d 0:17:52.560 --> 0:17:55.200 megapixels on the back camera of their highest end phone. 0:17:55.800 --> 0:18:00.320 So you're not seeing major improvements, major design changes, AGR 0:18:00.320 --> 0:18:03.600 processor upgrades here. These are going to be very smaller 0:18:03.640 --> 0:18:07.600 year over your upgrades. For the Apple watchers out there, 0:18:07.760 --> 0:18:10.720 there's this term where you call it an s year, right, 0:18:10.840 --> 0:18:15.000 sometimes you get the iPhone fives or success right the tenants. 0:18:15.840 --> 0:18:18.320 This is like that for samtime. This's your small improvements. 0:18:18.680 --> 0:18:24.040 Mark German, fascinating. Thank you so much across the hardware conversation. Meanwhile, 0:18:24.240 --> 0:18:27.360 let's get you to the music conversation. Because Spotify reported 0:18:27.359 --> 0:18:29.399 fourth court to subscribe a growth that beat estimates a 0:18:29.440 --> 0:18:31.040 lot of that of course to do a podcasting to 0:18:31.400 --> 0:18:34.679 the monthly active users have now reached almost five million. 0:18:34.720 --> 0:18:37.960 The gross margin also better than expected. Because all helping 0:18:38.000 --> 0:18:40.080 the shares jump the most in the year. Today now 0:18:40.119 --> 0:18:42.919 the ad supported revenue in the music streaming giant also 0:18:43.000 --> 0:18:46.399 climbed four and that's actually at a time when brands 0:18:46.400 --> 0:18:49.280 have been slowing their spending. So the executives were staying 0:18:49.359 --> 0:18:52.840 pretty optimistic on the longer term goals of this business 0:18:53.000 --> 0:18:55.360 and also of course focused on the near term efficiency 0:18:55.359 --> 0:18:58.280 after Spotify recently announced that it is planning to cut 0:18:58.280 --> 0:19:09.280 about six percent of its employee Welcome back to Remo Technology. 0:19:09.280 --> 0:19:12.000 I'm Caroline Hide in New York and ed well the 0:19:12.160 --> 0:19:16.199 stories continue earnings but also sadly layoffs. Yeah, and a 0:19:16.200 --> 0:19:18.360 lot of that driving movement and after hours, so let's 0:19:18.359 --> 0:19:19.800 get right to it. Some of the names we've been 0:19:19.840 --> 0:19:22.399 talking about in the show, particularly snap down in a 0:19:22.440 --> 0:19:25.479 big way and after hours now more than fourteen percent. 0:19:25.680 --> 0:19:29.639 Forecasts for revenue that's going to drop two a wide range, 0:19:29.880 --> 0:19:32.480 and investors kind of shaking off this idea. It subscription 0:19:32.560 --> 0:19:35.480 service has reached two million users quickly e A now 0:19:35.600 --> 0:19:39.080 down eleven percent, really accelerating those declines in after hours. 0:19:39.240 --> 0:19:42.320 It's forecast for bookings basically show that those new titles 0:19:42.480 --> 0:19:45.000 out in the holidays have not gained traction. If there's 0:19:45.000 --> 0:19:46.840 a bright spot, it's a m D in the chip 0:19:46.880 --> 0:19:49.640 sets are at one point seven percent, a strong forecast 0:19:49.680 --> 0:19:51.960 for the current period, bucking the trend, a lot of 0:19:52.000 --> 0:19:54.480 strength in server. I also want to pivots to fintech 0:19:54.600 --> 0:19:57.439 because there's actually a fair amount of newsflow and fintech, 0:19:57.480 --> 0:20:00.720 particularly around layoffs. As you discussed PayPal in firming that 0:20:00.840 --> 0:20:03.640 it's doing layoffs being cheered in after hours, up too, 0:20:04.080 --> 0:20:06.480 and Upstart a name that caught my eye. It is 0:20:06.840 --> 0:20:10.120 cutting around of staff Caroline, but that wasn't as far 0:20:10.200 --> 0:20:13.439 as it went. It also is scrapping development of a 0:20:13.520 --> 0:20:17.760 small business loans program, citing macro economic conditions, which for 0:20:17.800 --> 0:20:22.120 a fintech company that basically deals in AI powered lending, 0:20:22.480 --> 0:20:25.000 is a worrying sign. Yeah, good point on the macro there. 0:20:25.080 --> 0:20:26.800 Let's dig in a little bit more into the fintech 0:20:26.800 --> 0:20:30.199 space and really what some other key companies are seeing 0:20:30.359 --> 0:20:32.359 as to where to invest on a MARS is with 0:20:32.480 --> 0:20:36.240 us as American Express Glue president for Global Commercial Services, 0:20:36.440 --> 0:20:39.439 just introduced in fact Business Blueprint. It's a free digital 0:20:39.480 --> 0:20:41.919 tool that lets small businesses manage their cash flow. So 0:20:41.960 --> 0:20:45.639 let's talk about the business Blueprint on and what are 0:20:45.640 --> 0:20:49.160 you responding to. Clearly you're seeing demand coming from small 0:20:49.200 --> 0:20:53.080 businesses like absolutely, So we're really excited about the launch 0:20:53.119 --> 0:20:56.120 of Business Blueprint for a few reasons for American Express. 0:20:56.800 --> 0:20:58.960 The first is American Express of the leader in small 0:20:58.960 --> 0:21:02.040 business cards. You'll know that we have over three million 0:21:02.080 --> 0:21:05.439 small business card customers here in the US UH and 0:21:05.440 --> 0:21:08.120 we know that those customers want more. They want easier, 0:21:08.359 --> 0:21:11.119 more integrated ways to manage your cash flow, which is 0:21:11.160 --> 0:21:13.240 always a small business pain point, you know, in any 0:21:13.280 --> 0:21:16.760 economic climate. And what Blueprint lets us does, let's us 0:21:16.800 --> 0:21:19.080 do is engage with these customers in new ways so 0:21:19.119 --> 0:21:21.920 they can come onto the platform and log into access 0:21:21.920 --> 0:21:24.840 a free insights tool, they could apply for a flexible 0:21:24.840 --> 0:21:27.760 line of credit product, they can take an American Express 0:21:27.840 --> 0:21:30.840 business checking account and access a great a p y 0:21:30.960 --> 0:21:33.400 all in one, easy to manage place. And we kind 0:21:33.400 --> 0:21:35.800 of see it as one of the most important new 0:21:35.840 --> 0:21:38.920 benefits that you've rolled out to small businesses really since 0:21:39.000 --> 0:21:41.840 membership rewards. So we're very excited about the launch today. 0:21:41.960 --> 0:21:46.400 You see, it's a significant growth opportunity where why well, 0:21:46.440 --> 0:21:49.480 small business already a big part of American Express and 0:21:49.480 --> 0:21:51.439 and We're a big part of small businesses here in 0:21:51.480 --> 0:21:53.920 the US. In fact, I talked about those three million 0:21:53.960 --> 0:21:57.840 small businesses, but they represent about of all of all 0:21:58.000 --> 0:22:02.480 US small business cards spending. That every time a small 0:22:02.480 --> 0:22:05.159 business uses a card in the US on a billions 0:22:05.200 --> 0:22:08.240 of making a payment, it comes through American Express. So 0:22:08.280 --> 0:22:10.520 it's already a big part of the company. And it's 0:22:10.560 --> 0:22:13.160 our goal really to support these small businesses as they grow. 0:22:13.560 --> 0:22:16.840 You know, the post pandemic period, we saw this incredible 0:22:16.880 --> 0:22:20.520 small business formation in the US, over five million small 0:22:20.520 --> 0:22:23.280 businesses forms. We want to make sure that as many 0:22:23.320 --> 0:22:26.320 of them as possible become American Express customers. We help 0:22:26.359 --> 0:22:29.000 them navigate whatever is ahead. And of course in the 0:22:29.160 --> 0:22:32.400