WEBVTT - Tech and Crypto Market Rout and Twitter Cuts Costs 0:00:03.880 --> 0:00:07.200 From the heart of where innovation, money and power collive 0:00:08.000 --> 0:00:12.520 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:12.560 --> 0:00:28.920 Emily Jay. I'm Emily Check in San Francisco, and this 0:00:28.920 --> 0:00:31.800 is Bloomberg Technology. Coming up in the next hour, Saudi 0:00:31.920 --> 0:00:36.560 Aroundco overtakes Apple as the world's most valuable company. How 0:00:36.600 --> 0:00:39.159 the tech and crypto selloff, coupled with a surge in 0:00:39.280 --> 0:00:42.599 oil prices is up ending the order of the biggest 0:00:42.640 --> 0:00:47.199 forces in the global economy. Plus two top executives are 0:00:47.280 --> 0:00:49.920 out at Twitter as the company looks to cut costs 0:00:50.120 --> 0:00:53.720 and freeze hires ahead of Elon Musk's takeover. This as 0:00:53.880 --> 0:00:56.600 Musk is looking for new funding as he cuts his 0:00:56.760 --> 0:01:00.360 Tesla margin loan. And we will be here from some 0:01:00.440 --> 0:01:03.080 top CEOs today. Ryan Chesky joins us to talk about 0:01:03.080 --> 0:01:05.640 Airbnb is quote the biggest change in a decade, and 0:01:05.840 --> 0:01:08.679 how we thinks travelers will be hit by inflation. And 0:01:08.720 --> 0:01:11.640 we'll hear from Arms CEO as the chip company gets 0:01:11.680 --> 0:01:14.080 ready for an I p O. All of that in 0:01:14.120 --> 0:01:16.320 a moment, But first I want to continue this conversation 0:01:16.319 --> 0:01:19.199 now talk about Apple in particular falling again behind Saudi 0:01:19.240 --> 0:01:22.920 Aramco as the world's most valuable company. Pierre Farragou joining 0:01:23.000 --> 0:01:25.760 us now who heads up the Global Tech Infrastructure team 0:01:26.080 --> 0:01:28.840 at New Street Research. So, Pierre, is this a changing 0:01:28.840 --> 0:01:31.440 of the guard here or is this a momentary blip? 0:01:32.680 --> 0:01:34.920 Not much is happening if you if you take a 0:01:34.920 --> 0:01:37.640 step back and look at Apple in the perspective of 0:01:37.680 --> 0:01:40.200 the world. You know, I look at on the daily 0:01:40.240 --> 0:01:44.360 basis there as as Ed mentioned, it down like that 0:01:44.560 --> 0:01:48.480 twenty percent from the high, seventeen percent from there average 0:01:48.880 --> 0:01:52.559 value of the last eighteen months. Look at Tesla down 0:01:52.760 --> 0:01:58.040 fifty nine percent, Amazon down thirty Google down thirty percent. 0:01:58.160 --> 0:02:02.760 So Apple, on the alative is exactually doing doing quite 0:02:02.800 --> 0:02:07.400 all right? Um uh. And there are a lot of 0:02:07.400 --> 0:02:09.600 reasons for that. You know, they've done very well. They've 0:02:09.600 --> 0:02:16.120 grown through the last five years earnings twenty more than uh. 0:02:16.120 --> 0:02:18.760 And they've done very well in them uh in the 0:02:18.840 --> 0:02:23.560 recent context, through the pandemic, through like inflationary pressure, they've 0:02:23.560 --> 0:02:26.920 had actually a very strong demand. UM. And then when 0:02:27.320 --> 0:02:30.960 UM investors look at Apple today in this massive set 0:02:30.960 --> 0:02:34.359 of that that's actually more you know, of a quality name, 0:02:35.240 --> 0:02:38.600 like a safe heaven for them, UM, because they tend 0:02:38.639 --> 0:02:41.120 to to consider that Apple still has like a pretty 0:02:41.200 --> 0:02:45.880 nice outlook that revenue growth could continue. You have new products, 0:02:45.919 --> 0:02:51.280 opportunities in are in UM in autos. So so like 0:02:51.440 --> 0:02:53.520 the longer term I would look for Apples still looks 0:02:53.560 --> 0:02:55.720 really attractive to investors, and that's the reason why I 0:02:55.760 --> 0:02:59.720 think they stuff didn't do that bad. So there's a 0:02:59.800 --> 0:03:02.200 kind put in an Apple's fundamentals. What about the broader 0:03:02.320 --> 0:03:05.639 tech sector. I mean, Saudi Aramco has lived above all 0:03:05.680 --> 0:03:07.240 of them, and if you look at the top six 0:03:07.560 --> 0:03:13.520 companies by market cap, Apple, Microsoft, Alphabet, Amazon, all behind 0:03:13.560 --> 0:03:18.040 an oil company. Yeah. So yeah, it's a good question. 0:03:18.160 --> 0:03:20.800 That's what I've been working on interest studays. You know, what, 0:03:21.120 --> 0:03:24.440 what are the opportunities like names to buy in this 0:03:24.600 --> 0:03:28.200 in this like broad tech tex set of UM And 0:03:28.280 --> 0:03:30.760 the way I'd like to think about it is what 0:03:30.880 --> 0:03:35.960 prey triggers the set of initially is inflation and the 0:03:36.040 --> 0:03:39.760 concern of interest rates going up, because when, of course, 0:03:39.760 --> 0:03:41.400 when you look at the very high growth company, if 0:03:41.440 --> 0:03:45.360 interests go up, it is a very negative effect on 0:03:45.000 --> 0:03:49.160 the evaluation. Now here's the way I'm thinking about about it. 0:03:49.240 --> 0:03:52.920 The million a lot of these companies are actually fairly 0:03:53.040 --> 0:03:59.119 inflation proof. So if you get an Apple, Microsoft, an Amazon. 0:03:59.440 --> 0:04:02.600 There you to pass on costs is actually not too bad. 0:04:02.680 --> 0:04:06.320 So in an fashionary environment, they should actually grow faster 0:04:07.160 --> 0:04:10.920 because they'll be able to increase their prices with with inflation. 0:04:11.440 --> 0:04:16.760 And so what I like doing are overreacting then yes, 0:04:16.880 --> 0:04:21.120 I I think that the investors reaction is creating opportunities. 0:04:21.200 --> 0:04:23.599 And you need to look at these companies who have 0:04:23.680 --> 0:04:27.400 good pricing power, who have very strong market position, and 0:04:27.440 --> 0:04:30.679 who have been battered down in recent weeks and likely 0:04:30.720 --> 0:04:34.240 even recent months, in the last six months, and you 0:04:34.279 --> 0:04:38.040 can find very I think, very interesting opportunities like the 0:04:39.040 --> 0:04:41.919 three or all that UM popped to my eyes to 0:04:42.000 --> 0:04:44.960 the Artesla of course, the stocky string and forty five 0:04:45.000 --> 0:04:47.400 times earnings. It's down from a hundred and forty times 0:04:47.400 --> 0:04:51.360 six months ago, and um it's still up to grow 0:04:51.440 --> 0:04:54.880 like earnings forty two fifty a year. Another one is 0:04:54.920 --> 0:04:58.800 c SMC is the ship manufacturer, down thirty straight on 0:04:58.880 --> 0:05:02.040 fifteen times earning, and it's it has a better gross 0:05:02.040 --> 0:05:06.520 potential in my view, uh than Apple. And then the 0:05:06.560 --> 0:05:10.200 other one interesting worth mentioning is actually Nvidia, down almost 0:05:10.240 --> 0:05:15.359 sev from the peak. And and here again a company 0:05:15.400 --> 0:05:18.520 that has a lot of pricing power, very strong leadership 0:05:18.520 --> 0:05:22.680 in their market. Everybody needs their cheap and they steket 0:05:22.720 --> 0:05:25.280 you do very well in in the next few years. 0:05:25.279 --> 0:05:28.760 So so I see opportunities um in that set of 0:05:30.240 --> 0:05:32.240 even in the midst of pare even in the midst 0:05:32.279 --> 0:05:35.040 of a supply chain shortage and a lockdown in China, 0:05:35.160 --> 0:05:37.560 I mean in video, I mean obviously Apple and Video 0:05:37.600 --> 0:05:42.080 is also exposed to that. Yeah, So yeah, it's a 0:05:42.120 --> 0:05:45.960 good point. Like the next few the next few months 0:05:46.040 --> 0:05:47.960 or even you know, the next couple of quarters could 0:05:48.000 --> 0:05:52.559 be slightly challenging for for these players. But I don't 0:05:52.600 --> 0:05:56.479 think you you have any like you know, incremental negative 0:05:57.480 --> 0:06:02.800 negative news flow coming through on that front. So we 0:06:02.880 --> 0:06:05.760 are really in the deep of the supply constraints and 0:06:05.880 --> 0:06:09.360 supply is now coming back to take time to get 0:06:09.400 --> 0:06:13.159 supply back, but it is it is already on the 0:06:13.200 --> 0:06:15.800 way up. And I think the situation in China, as 0:06:15.880 --> 0:06:19.320 much as it is like a dramatic disruption for a 0:06:19.320 --> 0:06:22.839 lot of these businesses, it's actually were understood learning Like 0:06:22.880 --> 0:06:24.919 Apple talked about it from the Earning School not so 0:06:24.920 --> 0:06:28.599 long ago, and investors are kind of putting their heads 0:06:28.600 --> 0:06:32.520 around around that situation. So I tend to overlook that 0:06:32.680 --> 0:06:35.280 and think about, you know, what are like the great 0:06:35.320 --> 0:06:38.800 compounding stories, like names that have this very high creaty 0:06:38.839 --> 0:06:44.240 growth outlook that has been like taken let us suffered 0:06:44.320 --> 0:06:47.000 so much in this pullback, and that's where I see 0:06:47.040 --> 0:06:49.280 the opportunities. But of course you have to look through 0:06:49.640 --> 0:06:53.000 the next couple of quarters. Maybe. Well, thanks for helping 0:06:53.120 --> 0:06:55.440 us try to make sense of it all here, fair, 0:06:55.720 --> 0:06:58.240 I was going to have your new Street research. Thank you. 0:06:59.320 --> 0:07:01.920 I mean time to is making some changes at it 0:07:02.080 --> 0:07:05.040 as it awaits Elon Musk's forty four billion dollar takeover, 0:07:05.120 --> 0:07:08.839 including cutting some big costs. Bloom Berk's Kurt Wagner covers 0:07:08.880 --> 0:07:12.120 Twitter for US and joins US now, so Kurt, two 0:07:12.120 --> 0:07:16.239 big executives leaving. Is this all because of Elon Musk? 0:07:16.320 --> 0:07:20.280 Or is this because of Twitter's own business problems. That's 0:07:20.320 --> 0:07:22.920 sort of the question that I'm trying to get to 0:07:22.960 --> 0:07:25.440 the answer to. As well. We have a new CEO, 0:07:25.520 --> 0:07:29.280 of course, Paraguagor Wall, who took over last November, and 0:07:29.320 --> 0:07:31.360 it's always natural for a new CEO to sort of 0:07:31.400 --> 0:07:34.400 want to leave their imprints on the new company, makes 0:07:34.400 --> 0:07:37.200 some big changes, get their own kind of executive team 0:07:37.240 --> 0:07:39.800 in there. Of course, we're in this unique situation right 0:07:39.800 --> 0:07:42.240 now with Twitter where everyone's kind of in a limbo 0:07:42.320 --> 0:07:44.520 right there, waiting for Elon Musk to take over, So 0:07:44.560 --> 0:07:46.400 it was sort of interesting timing for him to make 0:07:46.400 --> 0:07:50.440 two big moves right now. Although I'm told that this 0:07:50.480 --> 0:07:51.920 has sort of been in the works for a couple 0:07:51.920 --> 0:07:54.840 of weeks, so it's unclear exactly whether this was, you know, 0:07:55.160 --> 0:07:58.120 a plan of Elon Musk's, or something that Parragu wanted 0:07:58.160 --> 0:08:00.280 to do, sort of with Elon's blessing. I to get 0:08:00.280 --> 0:08:04.000 the sense it's maybe the latter, So let's talk about 0:08:04.040 --> 0:08:07.400 who is leaving. In the reaction, there were some not 0:08:07.520 --> 0:08:10.760 happy tweets, as one might expect when people get fired 0:08:10.920 --> 0:08:15.640 from Twitter. Well, these are two long time product executives, 0:08:15.720 --> 0:08:18.440 Cavon Baked Poor, who has been running product at Twitter 0:08:18.520 --> 0:08:21.440 for years now, and Bruce Falk, who has been running 0:08:21.560 --> 0:08:24.560 revenue product at the company. So two people who have 0:08:24.680 --> 0:08:26.200 been there for a long time and who a lot 0:08:26.240 --> 0:08:28.880 of people did really like. And when you are in 0:08:28.920 --> 0:08:31.600 a situation like this right where employees are already wondering 0:08:31.680 --> 0:08:34.200 like what comes next? What is my job going to 0:08:34.240 --> 0:08:36.360 be secure? When Ellen takes over. Is the team I'm 0:08:36.360 --> 0:08:38.880 working on going to be around when Ellen takes over. 0:08:39.120 --> 0:08:40.480 And then you see two people who a lot of 0:08:40.520 --> 0:08:42.160 people like and who have been there such a long 0:08:42.200 --> 0:08:46.520 time kind of get booted unexpectedly. I think that creates 0:08:46.559 --> 0:08:50.640 a lot of, you know, concern from employees. And so 0:08:50.679 --> 0:08:52.000 that's sort of what I've been hearing today, a lot 0:08:52.040 --> 0:08:55.160 of people scratching their head wondering what does this mean exactly, 0:08:55.200 --> 0:08:58.679 and then what happens next for the rest of us. Meantime, 0:08:58.800 --> 0:09:02.920 Mosk is still trying to get financing, scrapping part of 0:09:03.080 --> 0:09:07.599 his Tesla margin loan. Are these two things related. I 0:09:08.080 --> 0:09:10.760 think they're related in the sense that everything that Ellen 0:09:10.920 --> 0:09:13.360 does kind of either makes the deal seem more or 0:09:13.480 --> 0:09:16.319 less likely. And I think the fact that he's perhaps 0:09:16.720 --> 0:09:18.640 you know, going to get rid of this margin loan 0:09:18.760 --> 0:09:21.800 because he's able to secure a little bit more equity financing, 0:09:21.880 --> 0:09:23.840 I think that just makes the deal more likely to 0:09:23.880 --> 0:09:26.440 go through. Right. And so if you're sitting there as 0:09:26.480 --> 0:09:29.800 the CEO of Twitter, you kind of have to prepare 0:09:29.840 --> 0:09:32.400 for two scenarios, the one in which maybe the deal 0:09:32.440 --> 0:09:34.960 doesn't happen and suddenly you're still in charge what have 0:09:35.040 --> 0:09:37.079 you been doing over these last six months to to 0:09:37.320 --> 0:09:40.040 make that happen? And then the other where Ellen comes in, 0:09:40.200 --> 0:09:42.160 and then you're wondering, you know, if you're progu am, 0:09:42.160 --> 0:09:44.280 I still going to have a job under this new guy. 0:09:44.400 --> 0:09:47.040 So I think he's probably trying to navigate that. And 0:09:47.040 --> 0:09:50.040 I think Ellen getting closer and closer to getting the 0:09:50.080 --> 0:09:53.680 deal funded um probably dictates, you know, the timing of 0:09:53.720 --> 0:09:57.480 some of these things. Interesting. Alright, Well, more twists and 0:09:57.480 --> 0:10:00.440 turns to come. I'm sure bloom works. Kurt Wagner. Thanks, 0:10:08.679 --> 0:10:11.160 I'm not gonna give your timing, Emily, you know that. 0:10:12.080 --> 0:10:14.240 Do I want the company to become a public company 0:10:14.240 --> 0:10:16.480 at some point, of course, but I really want to 0:10:16.480 --> 0:10:18.680 make sure that the company that we do take public 0:10:18.840 --> 0:10:22.559 is a company that's reflective of this uh new Bold 0:10:22.559 --> 0:10:28.120 Elevision Instagart CEO Fiji Cima their last month when I 0:10:28.160 --> 0:10:30.120 asked her on studio at one point, oh, when the 0:10:30.120 --> 0:10:33.120 company might go public? Well, Piers, now is the time 0:10:33.160 --> 0:10:36.520 Bloomberg has learned. The company has filed confidentially paperwork to 0:10:36.559 --> 0:10:39.400 start the process with the sec The ten year old 0:10:39.480 --> 0:10:41.640 grocery delivery up Start was once one of the most 0:10:41.720 --> 0:10:45.640 highly valued of the gig economy companies and grew exponentially 0:10:46.000 --> 0:10:49.440 through the pandemic, but now we'll navigate a very volatile market. 0:10:49.679 --> 0:10:53.600 Instacart slashed its private market valuation by almost in March, 0:10:53.640 --> 0:10:59.200 as orders have slipped in a post pandemic world. Well 0:10:59.360 --> 0:11:02.840 it was built as Airbnb's biggest change in a decade, 0:11:02.840 --> 0:11:05.400 the company rolling out a number of new features, including 0:11:05.440 --> 0:11:09.079 categories like Castles and Amazing Pools and homes that make 0:11:09.120 --> 0:11:13.319 you go OMG, as well as split stays and air cover, 0:11:13.520 --> 0:11:17.800 which addresses one of the company's biggest issues, consumer protections. 0:11:18.080 --> 0:11:20.400 I spoke to Airbnb CEO and co founder Brian chess 0:11:20.400 --> 0:11:23.280 Ca about all the changes, along with concerns about rising prices, 0:11:23.360 --> 0:11:28.120 inflation and how that will affect their customers. Take a listen. Well, 0:11:28.360 --> 0:11:30.679 first of all, the reason that the price per night 0:11:30.760 --> 0:11:34.120 went up was mostly because people are booking more expensive airbnbs. 0:11:34.320 --> 0:11:36.600 So before the pandemic, a lot of people are traveling 0:11:36.600 --> 0:11:38.880 by themselves or one person. They were booking one, two 0:11:38.880 --> 0:11:42.200 bedroom homes. Now they're booking much bigger homes to travel 0:11:42.240 --> 0:11:44.800 with families and groups. And there's been a mixed shift 0:11:44.880 --> 0:11:47.720 from Asia to North American Europe, and these are higher 0:11:47.720 --> 0:11:51.720 price per knights. That's the primary contribution for the increase 0:11:51.760 --> 0:11:53.839 of price. You are correct, though, a lot of people 0:11:53.880 --> 0:11:55.400 aren't going to be able to travel and be able 0:11:55.400 --> 0:11:58.680 to afford to travel. But another thing. Airbnb was started 0:11:58.760 --> 0:12:01.520 during the Great Recession in two thousand eight, and people 0:12:01.640 --> 0:12:04.520 used Airbnb because it wasn't a more affordable way to travel. 0:12:04.760 --> 0:12:06.679 After two years of people not being able to leave 0:12:06.720 --> 0:12:08.679 their home, many people, I think they want to get 0:12:08.679 --> 0:12:10.360 out and this is going to be a travel rebound 0:12:10.400 --> 0:12:13.800 unlike anything we've ever seen before. Still, even though you're 0:12:13.800 --> 0:12:17.520 projecting this travel rebound, you've got Airbnb shares down to 0:12:18.120 --> 0:12:20.959 new lows. And I'm so curious how you're watching this 0:12:21.240 --> 0:12:24.160 broader market turmoil. What's your take on this? I'm not 0:12:24.200 --> 0:12:27.760 watching the broader market turmoil, and I would hope shareholders 0:12:27.800 --> 0:12:30.200 know that I'm obsessed over every single day. Are the 0:12:30.280 --> 0:12:32.679 inputs to the stock price? Not the stock price. I 0:12:32.720 --> 0:12:34.920 think that's the very best thing for shareholders. So my 0:12:35.040 --> 0:12:36.920 job is to make sure we have the best service, 0:12:36.960 --> 0:12:39.800 we have enough host they're prepared for the great travel season. 0:12:39.960 --> 0:12:41.680 That's how I'm gonna worry about. We're gonna play a 0:12:41.679 --> 0:12:44.320 long game, and I think the long term shareholders will 0:12:44.320 --> 0:12:47.440 really benefit from that. I wonder how this impacts retention 0:12:47.480 --> 0:12:50.680 and recruiting though. Are actually seeing a lot of companies 0:12:50.679 --> 0:12:54.559 that really uh, you know, Sword in the pandemic, struggling 0:12:54.640 --> 0:12:57.960 coin Base, robin Hood as well. Do you think this 0:12:58.040 --> 0:13:01.920 could impact hiring at all or the mood in Silicon Valley. 0:13:01.960 --> 0:13:06.080 I mean, we're actually completely overwhelmed with hiring. We're completely overwhelmed. 0:13:06.559 --> 0:13:10.319 Two weeks ago we announced that Airbing employees can live 0:13:10.360 --> 0:13:12.199 and work anywhere in the world, and if you move 0:13:12.200 --> 0:13:13.880 wherever you want in the country, we're not gonna lower 0:13:13.880 --> 0:13:16.880 your pay. Since we made that announcement, more than one 0:13:17.080 --> 0:13:20.280 million people visit our jobs and careers page. We only 0:13:20.320 --> 0:13:23.560 have six thousand people at the company, so um, I 0:13:23.600 --> 0:13:26.360 do think that there might be some broader kind of considerations, 0:13:26.360 --> 0:13:28.520 But Airbnb, we have quite a lot of interest, and 0:13:28.640 --> 0:13:31.760 I don't think that will change. So Twitter just announced 0:13:31.760 --> 0:13:35.640 a hiring freeze and cutting costs, potentially rescinding some offers 0:13:35.640 --> 0:13:37.480 for a different reason. And I wonder, with this, on 0:13:37.600 --> 0:13:41.400 top of other companies pausing hiring, if this could be 0:13:41.440 --> 0:13:44.280 a moment of opportunity for you. Do you see this 0:13:44.640 --> 0:13:47.720 as a chance to attract be a magnet for new talent. 0:13:47.960 --> 0:13:49.240 I mean a lot of people are reaching out to 0:13:49.320 --> 0:13:51.320 us from other big tech companies, maybe because a lot 0:13:51.360 --> 0:13:52.920 of tech companies are asking people to go back to 0:13:52.920 --> 0:13:54.920 the office three days a week, or maybe because they're 0:13:54.920 --> 0:13:57.840 not hiring as many. But make no mistake, Airbnb is 0:13:57.880 --> 0:14:01.040 stepping on the gas this summer. How are you stepping 0:14:01.080 --> 0:14:04.720 on the gas in China? We're seeing ongoing COVID lockdowns there. 0:14:04.760 --> 0:14:08.000 I know it's been a priority for you in years past. 0:14:08.240 --> 0:14:10.600 What trends are you seeing in a pack and when 0:14:10.600 --> 0:14:13.640 do you expect them to recover? You know, our China 0:14:13.720 --> 0:14:19.000 business has primarily been people in China leaving China obviously 0:14:19.040 --> 0:14:21.720 crossing a border, so it's cross border travel going to 0:14:21.760 --> 0:14:25.320 other countries. Japan was a really popular corridor, South Korea, 0:14:25.560 --> 0:14:28.120 They're going to like Europe, They're going to other places. 0:14:28.640 --> 0:14:32.080 Because of the situation of China in COVID, there's not 0:14:32.160 --> 0:14:34.400 a huge amount of outbound business right now, and so 0:14:34.480 --> 0:14:37.120 our business in China is not super robust and it's 0:14:37.120 --> 0:14:39.280 going to be probably a while. It's really gonna track 0:14:39.360 --> 0:14:44.640 with the health crisis. Brian Chesky, Airbnb CEO and co founder. 0:14:44.680 --> 0:14:47.560 You can catch our full interview at Bloomberg dot com. 0:14:47.600 --> 0:14:50.600 Coming up, SO no CEO Patrick Spence joins us fresh 0:14:50.680 --> 0:14:53.320 off the company's latest earnings results. Will also talk about 0:14:53.320 --> 0:14:57.040 why so Nos is being compared to Amazon and Apple. 0:14:57.560 --> 0:15:14.920 He's next, This is Bloomberg. The same day that Sons 0:15:15.000 --> 0:15:17.440 released its second quarter result of the company also announced 0:15:17.440 --> 0:15:20.800 a number of new products, including a voice activated assistant 0:15:20.840 --> 0:15:24.440 called Sons Voice Control. This is the company's first step 0:15:24.560 --> 0:15:27.640 into the world of digital assistance, which is largely dominated 0:15:27.680 --> 0:15:31.080 by Amazon's Alexa and Apple's Series. Joining me now, so 0:15:31.200 --> 0:15:35.880 no CEO Patrick spent So, Patrick, how is yours different? 0:15:37.360 --> 0:15:40.240 Ours is very different in the fact that all the 0:15:40.280 --> 0:15:43.680 processing for it is done locally. Um and it's very 0:15:43.760 --> 0:15:46.200 so it's very private, very privacy focus, something we know 0:15:46.240 --> 0:15:48.360 a lot of our customers have been looking for. And 0:15:48.400 --> 0:15:50.440 the other thing is we've really focused it on the 0:15:50.560 --> 0:15:54.080 Sons user experience. So think about music. All your audio 0:15:54.160 --> 0:15:56.280 needs being able to move music from one room to 0:15:56.320 --> 0:15:59.280 another for instance. So ours, I like to say, is 0:15:59.720 --> 0:16:01.960 you know an inch wide and a mile deep. Whereas 0:16:02.320 --> 0:16:05.120 you know our partners at Amazon and Google, they offer 0:16:05.200 --> 0:16:08.360 you one which is a mile wide and an inch deep, 0:16:08.400 --> 0:16:11.040 and of course, um, we want to provide customers choice, 0:16:11.040 --> 0:16:14.640 so you can actually use alexas simultaneously with the Sono's 0:16:14.680 --> 0:16:18.600 voice control. So what's the long term goal with voice control? 0:16:18.720 --> 0:16:21.040 I mean tell us a little bit more, what you 0:16:21.120 --> 0:16:25.200 mean using that mile wide into apart metaphor? Yeah, so 0:16:25.280 --> 0:16:27.640 really making sure Yeah, I think I think we've seen 0:16:27.720 --> 0:16:30.240 kind of a first wave, right, and UM, we usually 0:16:30.240 --> 0:16:32.440 see this with I think Gartner's hype cycle in terms 0:16:32.440 --> 0:16:36.720 of the excitement that comes from that initial wave of um, 0:16:36.800 --> 0:16:39.000 kind of the first part of a technology curve, and 0:16:39.200 --> 0:16:42.880 we saw that with Alexa and Google Assistant, and now 0:16:42.920 --> 0:16:45.480 I think what you'll see is more purpose built assistance, 0:16:45.480 --> 0:16:48.040 which really focus on the actual user experience for a 0:16:48.080 --> 0:16:50.760 particular product or a particular brand. And so you know, 0:16:50.800 --> 0:16:52.360 we've done a lot of work to make sure that 0:16:52.400 --> 0:16:54.840 you can get the music faster. It's recalling what music 0:16:55.200 --> 0:16:57.800 you've been listening to. It's very specific to the Sonos 0:16:57.880 --> 0:17:00.440 use cases. And again, like I said, private and runs 0:17:00.440 --> 0:17:03.200 locally because we heard from customers that that's important. And 0:17:03.240 --> 0:17:06.240 so what we're really trying to do is drive engagement 0:17:06.320 --> 0:17:09.680 because we know the more customers engage, the higher their 0:17:09.720 --> 0:17:12.080 lifetime value will be, the more chance they have to 0:17:12.119 --> 0:17:14.800 come back and add another Sonos product to their system. Now, 0:17:15.040 --> 0:17:17.960 we saw strong demand for your products in the last quarter, 0:17:18.080 --> 0:17:23.040 but obviously inflation going up. So NOS products are discretionary products. 0:17:23.600 --> 0:17:25.359 You know, how do you think inflation is going to 0:17:25.440 --> 0:17:27.640 impact sales this quarter and the rest of the year. 0:17:28.359 --> 0:17:31.320 You know, we continue to see very strong consumer demand. UM. 0:17:31.359 --> 0:17:33.680 You know, last year we had a huge year UH 0:17:33.760 --> 0:17:37.520 driving top line sales growth UM and this year we 0:17:37.640 --> 0:17:41.560 planned for fift UM. We've reaffirmed that in yesterday's news 0:17:41.800 --> 0:17:44.120 UM SO so we'd obviously taken into account the fact 0:17:44.119 --> 0:17:46.000 that we know we felt we got some tail wind 0:17:46.000 --> 0:17:49.400 obviously from people being at home UM. And we feel 0:17:49.480 --> 0:17:51.359 very good about our business model. And you know this 0:17:51.359 --> 0:17:54.720 supply wheel we have of existing customers telling their friends 0:17:54.720 --> 0:17:57.000 and family they should get so Nos. The number one 0:17:57.080 --> 0:17:59.439 reason people come into so Nos is still from family 0:17:59.440 --> 0:18:01.520 and friends to telling them, and then we have existing 0:18:01.520 --> 0:18:03.600 customers come back and buy the new products. And so 0:18:03.880 --> 0:18:05.960 with a whole set of new products we announced yesterday 0:18:06.200 --> 0:18:09.080 the great portfolio we have and we have a backlog emily, 0:18:09.200 --> 0:18:10.920 So I mean, we feel really good about where we 0:18:10.960 --> 0:18:13.600 are today. Despite I know some of the macro challenges 0:18:13.640 --> 0:18:17.160 that are out there. You raise concerns about supply chain 0:18:17.240 --> 0:18:22.360 issues and rising component prices, just how you know, difficult 0:18:22.400 --> 0:18:24.720 are those going to be to navigate over the next 0:18:24.760 --> 0:18:27.800 several months. Yeah, you know, it's been something that we've 0:18:27.800 --> 0:18:30.000 been dealing with really for eight quarters at this point, 0:18:30.000 --> 0:18:31.800 and we had hoped, and I think the industry had 0:18:31.800 --> 0:18:35.320 hoped that by the second half of two UM most 0:18:35.400 --> 0:18:37.400 of those would have dissipated. That is not the case. 0:18:37.440 --> 0:18:40.840 And obviously nobody anticipated China going back into a COVID 0:18:40.920 --> 0:18:44.200 zero situation in Shanghai, and so that's really impacted things 0:18:44.240 --> 0:18:46.399 as well. And so now we're expecting, and we've been 0:18:46.440 --> 0:18:49.639 planning for the rest of twenty two to really be 0:18:49.800 --> 0:18:54.080 challenged in terms of logistics and shipping and component costs, 0:18:54.080 --> 0:18:56.640 and so we've built that into our model UM as 0:18:56.640 --> 0:18:58.480 we think about delivering the year. But I would say, Emily, 0:18:58.520 --> 0:19:00.800 at this point, from everything I can see, expect the 0:19:00.880 --> 0:19:03.639 supply chain challenges to continue for the industry for the 0:19:03.680 --> 0:19:07.720 rest of twenty two. All Right, Patrick Spence, CEO of Sonas, 0:19:07.760 --> 0:19:18.880 thank you. Welcome back to boone. We're technology Emily changing 0:19:18.880 --> 0:19:21.359 in San Francisco. Let's get back to the markets, and 0:19:21.520 --> 0:19:26.200 robin Hood is shoring in late trading after filings showed 0:19:26.320 --> 0:19:29.480 a new stakeholder. Bloomberg's Ed Ludlow here with who it 0:19:29.600 --> 0:19:32.399 is and take it away. Yeah, it's Sam Bankman Freed 0:19:32.480 --> 0:19:35.920 of course, co founder and CEO of f t X. 0:19:36.440 --> 0:19:38.720 He's got a seven point six percent stake according to 0:19:38.760 --> 0:19:42.320 a regulatory filing based on today on Thursday's closing price 0:19:42.320 --> 0:19:44.400 of eight dollars fifty six cents a share, that would 0:19:44.480 --> 0:19:48.480 value his stake at five sixty seven million U S dollars. 0:19:48.480 --> 0:19:51.679 And you can see the reaction in after hours. We 0:19:51.680 --> 0:19:53.720 were up even higher just a few moments ago. We'll 0:19:53.720 --> 0:19:55.600 have to spend the next twenty four hours and I'm 0:19:55.600 --> 0:19:57.480 trying to work out what this means for the future 0:19:57.520 --> 0:20:00.080 of robin Hood. Of course, such a big year for 0:20:00.119 --> 0:20:04.280 the platform, build up a huge user base of retail traders, 0:20:04.280 --> 0:20:08.160 but then transactions started drop off, volatility, volumes not what 0:20:08.240 --> 0:20:10.680 investors thought. It would be one to watch going to 0:20:10.760 --> 0:20:14.479 Friday as well. Another interesting name in the world of markets. 0:20:14.480 --> 0:20:19.000 We're looking at soft Bank reporting a record and your loss, 0:20:19.119 --> 0:20:22.040 and this is Massaoshi son with a lot of problems. 0:20:22.080 --> 0:20:23.879 And you see these are the US listed shares of 0:20:23.960 --> 0:20:26.560 soft Bank. This is its Vision Fund unit that we're 0:20:26.560 --> 0:20:29.359 talking about. You're so familiar with it. But annual loss 0:20:29.800 --> 0:20:32.840 having just closed out the fiscal year of twenty point 0:20:32.920 --> 0:20:37.520 five billion dollars to zero point five billion US dollars. 0:20:37.560 --> 0:20:39.760 And you know, this is a company of knows that 0:20:40.200 --> 0:20:43.119 the invest principally in private sector right startups, but it 0:20:43.160 --> 0:20:45.439 was its public bets that really suffer. Let's bring up 0:20:45.480 --> 0:20:47.600 the board and look at some of the biggest names. 0:20:47.640 --> 0:20:49.880 This is how they performed over a twelve month basis, 0:20:50.119 --> 0:20:52.600 names like uber, Kupu and d D. That is a 0:20:52.600 --> 0:20:55.080 lot of red and you can see how that kind 0:20:55.080 --> 0:20:58.879 of failing in the investment approach kind of failed ultimately 0:20:59.080 --> 0:21:01.320 for Vision Fund. I think the other big takeaway very quickly, 0:21:01.400 --> 0:21:04.040 m is that they've really cut back the funds that 0:21:04.480 --> 0:21:06.960 the Vision Fund is deploying. You look at recent quarters, 0:21:07.440 --> 0:21:10.880 the period January March, they only authorized two point five 0:21:10.920 --> 0:21:14.160 billion dollars to put into their portfolio for new startups. 0:21:14.200 --> 0:21:17.119 That's a real departure from what we've seen in recent quarters. 0:21:17.119 --> 0:21:18.880 Think about two thousand and eighteen. You remember that one 0:21:19.000 --> 0:21:21.320 M thirty three billion dollars in a single quarter for 0:21:21.359 --> 0:21:24.120 the Vision Fund. Times to change for Massaci son how 0:21:24.160 --> 0:21:27.840 could I forget Ludlow? Thank you well. One area where 0:21:27.840 --> 0:21:30.800 soft Bank was more bullish was ARM, It's chip design 0:21:30.920 --> 0:21:33.240 unit that is preparing for an I p O. Massa 0:21:33.359 --> 0:21:36.320 son As detailed how fast ARMS growing and how it 0:21:36.359 --> 0:21:40.840 could ultimately become the most valuable asset in SoftBank's portfolio. 0:21:40.960 --> 0:21:43.160 Joining us to talk about how ARM gets there. It's 0:21:43.280 --> 0:21:46.320 CEO Renee has Renee great to have you back with us. 0:21:46.359 --> 0:21:49.080 So we're gonna get to the SoftBank stuff. But let's 0:21:49.080 --> 0:21:51.800 talk about how ARM is moving into more markets and 0:21:51.840 --> 0:21:55.560