WEBVTT - AMD Soars on Blockbuster AI-Fueled Forecast 0:00:02.520 --> 0:00:13.480 Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live 0:00:13.520 --> 0:00:17.319 from coast to coast with Caroline Hide in New York 0:00:17.600 --> 0:00:19.520 and Vla low in sentrances go. 0:00:22.000 --> 0:00:23.479 This is Bloomberg Tech coming up. 0:00:23.560 --> 0:00:27.000 AI enthusiasm is back as AMD rallies on a blockbuster 0:00:27.080 --> 0:00:30.920 Forcus and nvidiaoting's a deal with fiber maker Corning. Plus, 0:00:30.960 --> 0:00:34.960 Disney posts stronger results than expected thanks to improve profitability 0:00:35.080 --> 0:00:38.360 and its streaming business, and we speak with Uber's CFO 0:00:38.479 --> 0:00:41.360 as the right hailing platform posts a second quarter outlook 0:00:41.720 --> 0:00:43.400 that also beat expectations. 0:00:43.880 --> 0:00:46.319 First, we return to these markets that are risk on look. 0:00:46.360 --> 0:00:48.440 A lot of that has to do with geopolitics. There 0:00:48.520 --> 0:00:50.880 is hope of a de escalation between Iran and the 0:00:51.040 --> 0:00:53.800 United States. Could it's a deal be getting closer. The 0:00:53.880 --> 0:00:56.760 market trades on that. Stocks rise higher, and indeed bon 0:00:56.880 --> 0:00:58.720 yields pull back. We see a move in the dollar 0:00:58.760 --> 0:01:01.160 two Oil on the down side means we're at one 0:01:01.200 --> 0:01:02.600 point four percent on. 0:01:02.560 --> 0:01:03.600 The nasat one hundred. 0:01:03.680 --> 0:01:05.520 But there's a whole host of other news as to 0:01:05.520 --> 0:01:08.119 why technology stocks are on top, and. 0:01:08.040 --> 0:01:10.160 It comes from earnings and AI ambitions. 0:01:10.200 --> 0:01:14.640 We've got AMD pumping up fifteen percent once again taking 0:01:14.640 --> 0:01:16.480 the breath away from investors that not only are we 0:01:16.480 --> 0:01:19.880 seeing GPU traction, but CPU is seemingly on fire, despite 0:01:20.160 --> 0:01:23.360 of course also concerns about memory. We're still seeing growth 0:01:23.400 --> 0:01:26.640 in that trajectory. And in Nvidia up four percent, managing 0:01:26.640 --> 0:01:28.120 to play a bit of catch up after it's sold 0:01:28.120 --> 0:01:29.119 off for the last few days. 0:01:29.200 --> 0:01:30.759 But that's as they could do with Corning. 0:01:30.760 --> 0:01:33.040 They could be buying up to five hundred million dollars 0:01:33.040 --> 0:01:35.759 worth of shares and it's all about optical fibers. That's 0:01:35.800 --> 0:01:38.959 all about the AI data center too. So as TALKI 0:01:39.000 --> 0:01:40.959 infrastructure with a man who's been doing it for years 0:01:41.000 --> 0:01:45.160 in Kings with us in first AMD Lisa Sou managing 0:01:45.200 --> 0:01:47.640 to show that the total addressable from a market for 0:01:47.920 --> 0:01:51.600 CPU in particular really on fire as well as GPUs. 0:01:52.480 --> 0:01:53.760 Yeah, now you're exactly right. 0:01:53.840 --> 0:01:56.720 They put out earnings that were sort of pretty good, 0:01:57.120 --> 0:01:59.880 not as maybe exciting as some had hoped and learn. 0:02:00.320 --> 0:02:03.120 On the conference call, she gave a very bullish projection 0:02:03.360 --> 0:02:06.680 for the CPU, which is one of their core parts, 0:02:06.840 --> 0:02:09.480 part that's kind of been neglected in this AI race, 0:02:09.560 --> 0:02:11.919 and said, look, things are really strong there and guess 0:02:11.919 --> 0:02:14.160 what in this current quarter things are going to be 0:02:14.240 --> 0:02:16.639 up seventy percent for that particular business, and that was 0:02:16.680 --> 0:02:19.440 affirmation of what a lot of other companies have said. 0:02:19.840 --> 0:02:22.520 Wow, I mean, how is she navigating some of the 0:02:22.600 --> 0:02:24.680 issues that we've seen from a supply chain perspective, some 0:02:24.720 --> 0:02:27.320 of the memory issue that of course hits the PC 0:02:27.520 --> 0:02:28.519 side of the business. 0:02:28.800 --> 0:02:30.480 Yeah, I mean she got a lot of questions on 0:02:30.520 --> 0:02:33.359 the conference call exactly on that point, as you would imagine, 0:02:33.680 --> 0:02:36.080 and her answer was like, look, we've seen this coming, 0:02:36.120 --> 0:02:38.960 We've been working really hard. Guess what if you're a 0:02:38.960 --> 0:02:42.840 memberships player, you want to be selling this extremely expensive 0:02:42.880 --> 0:02:45.519 memory to me and to data center. So don't worry, 0:02:45.560 --> 0:02:48.280 we can meet our forecast, was what she was essentially 0:02:48.320 --> 0:02:49.120 assuring people. 0:02:49.600 --> 0:02:52.200 Now, AMD managed to pay off and we are seeing 0:02:52.200 --> 0:02:54.280 them ramp up sales. But when you compare like an 0:02:54.320 --> 0:02:56.920 eleven billion dollar guidance for the Core to coming compared 0:02:56.960 --> 0:02:59.920 to well seventy billion dollars we expect from the like 0:03:00.040 --> 0:03:03.720 sort of an Nvidia, it's still a second versus the giant, 0:03:03.760 --> 0:03:05.640 and the giant making news to day in what did 0:03:05.680 --> 0:03:08.840 you think about the deal with coreing Corning And once 0:03:08.840 --> 0:03:11.120 again is this cirt killar financing in some way or 0:03:11.160 --> 0:03:13.679 just making sure that AI infrastructure can get built. 0:03:14.520 --> 0:03:16.600 I think Jensen would explain it as you did at 0:03:16.600 --> 0:03:18.880 the Milk and conference this week, is like, look, we 0:03:19.000 --> 0:03:20.520 are going to go out. We're going to use our 0:03:20.560 --> 0:03:23.160 money to remove or to do our best to remove 0:03:23.280 --> 0:03:27.760 any possible bottle neck that's out there. And fiber is 0:03:27.760 --> 0:03:31.200 a big potential bottle neck going forward. Speed of light 0:03:31.320 --> 0:03:34.480 is as fast as you can transmit information. Traditional copper 0:03:34.560 --> 0:03:36.800 is reaching its limits. Guess what we need to make 0:03:36.800 --> 0:03:39.200 sure we have a lot of fiber optic connections out 0:03:39.200 --> 0:03:42.480 there for our forthcoming chips to keep this whole thing going. 0:03:42.800 --> 0:03:45.280 So he's obviously been putting his money to work in 0:03:45.360 --> 0:03:46.600 that kind of company as. 0:03:46.440 --> 0:03:48.960 Well, company based right here in New York State and 0:03:49.080 --> 0:03:51.520 King We so appreciate you out on the West coast 0:03:51.520 --> 0:03:51.840 for us. 0:03:51.920 --> 0:03:54.280 Thank you. Let's speak about more of all of this 0:03:54.400 --> 0:03:55.640 streny perjury is. 0:03:55.600 --> 0:03:58.960 With US Semiconductor and Semi's equipment and this obviously capital 0:03:59.160 --> 0:04:01.880 your latest note, can you highlight how am d strong 0:04:01.960 --> 0:04:06.600 CPU growth doubling of projections is that achievable? 0:04:06.680 --> 0:04:07.560 What could Chow call that? 0:04:09.200 --> 0:04:09.480 Well? 0:04:09.760 --> 0:04:13.040 Right now? The demand is very strong, you know, Agent 0:04:13.240 --> 0:04:16.800 Ki is the primary reason. But overall, AI capex has 0:04:16.800 --> 0:04:19.120 been going up as well. And on top of that, 0:04:19.160 --> 0:04:22.080 we're seeing strong demand on the enterprise you know, server 0:04:22.200 --> 0:04:23.760 side as well. So I think in a part of 0:04:23.800 --> 0:04:25.560 it is AI, part of it is in a traditional 0:04:25.640 --> 0:04:30.039 server demand. Overall demand is very strong, and in addition 0:04:30.120 --> 0:04:32.600 to that, you know, supply has been tight. Uh you know, 0:04:32.640 --> 0:04:35.760 Intel talked about you know, not not having you know, 0:04:36.000 --> 0:04:38.400 enough supply to you know, address the current demand. As 0:04:38.440 --> 0:04:42.080 a result, you know, the visibility is extending, the backlog 0:04:42.200 --> 0:04:45.000 is extending through the year, even into into next year. 0:04:45.680 --> 0:04:48.479 But I think I think there's also the structural you know, 0:04:48.760 --> 0:04:51.719 uh tailwind from you know, you know what we call 0:04:51.800 --> 0:04:54.480 the CPU to GPU ratio. If you look at the 0:04:54.520 --> 0:04:58.440 systems today in AI, typically it's one to four is 0:04:58.440 --> 0:05:00.640 what we see. In some cases one too, but the 0:05:00.760 --> 0:05:02.640 view is that that's going to go to one to one, 0:05:02.760 --> 0:05:04.760 even you know, more than one to one. 0:05:04.839 --> 0:05:06.560 So you know, that will be interesting to see. 0:05:06.560 --> 0:05:10.080 Tiny for our audience talk through that step function. It's 0:05:10.080 --> 0:05:13.760 all about agent KI, It's all about the need for inference, right. 0:05:15.240 --> 0:05:19.200 Yeah. I mean, look in training workloads. You know, historically 0:05:19.279 --> 0:05:22.400 we have seen you know, a CPU to GPU ratio 0:05:22.480 --> 0:05:24.520 of you know, one to four, even in some cases 0:05:24.520 --> 0:05:27.479 one to eight. And as we move to influencing, that 0:05:27.640 --> 0:05:31.040 is changing, primarily because of agentic AI. And of course 0:05:31.080 --> 0:05:33.640 you need to run the models still on you know, 0:05:33.720 --> 0:05:36.920 powerful GPUs, but to manage you know, because users are 0:05:36.960 --> 0:05:40.719 creating so many agents, to manage these agents, and to 0:05:40.800 --> 0:05:43.600 make sure that agents are you know, getting the appropriate 0:05:43.680 --> 0:05:47.279 data and they're talking to you know, other APIs. You know, 0:05:47.360 --> 0:05:50.040 CPUs you know, play a critical role. So we are 0:05:50.080 --> 0:05:53.120 seeing again it's early days. It's it's difficult to draw 0:05:53.200 --> 0:05:55.479 you know, too many conclusions, but the trend is moving 0:05:55.520 --> 0:05:59.280 in the direction of you know, that ratio improving in 0:05:59.279 --> 0:06:01.839 favor of cp you. So you know, our view is 0:06:01.839 --> 0:06:04.360 that at least you know, we have visibility based on 0:06:04.480 --> 0:06:06.440 you know, some of the architectures that we have seen 0:06:06.480 --> 0:06:09.960 from Nvidia and AMD and Google, et cetera. Into twenty 0:06:10.000 --> 0:06:12.880 twenty seven. You know, it's moving in the in the 0:06:12.920 --> 0:06:15.640 direction we think it's going to get to like, you know, 0:06:15.960 --> 0:06:18.640 one to two by end of next year. But whether 0:06:18.680 --> 0:06:20.760 it gets to one to one or even higher than 0:06:20.800 --> 0:06:23.040 one to one, that remains to be seen. 0:06:23.800 --> 0:06:26.240 Can I talk you about talk to you about valuations, 0:06:26.279 --> 0:06:29.120 because when you look at AMD on a one year hr, 0:06:29.360 --> 0:06:30.120 it's extraordinary. 0:06:30.160 --> 0:06:31.560 We're at a new record high. 0:06:31.600 --> 0:06:35.120 We're up three hundred percent over that one year basis, 0:06:35.160 --> 0:06:37.800 we're up sixty more than sixty percent on the year, 0:06:37.880 --> 0:06:40.280 and a new record high of look at six hundred 0:06:40.320 --> 0:06:42.640 billion dollars market cap, that's nothing compared to the four 0:06:42.680 --> 0:06:45.480 trillion of Nvidia. But when you start to get a 0:06:45.520 --> 0:06:49.800 little bit anxious about where the stock trades, well. 0:06:49.560 --> 0:06:52.400 You know, the valuation is rich, right, you know, and videos, 0:06:52.440 --> 0:06:54.520 you know, trading in high teens. When you look at 0:06:54.600 --> 0:06:58.200 calendar twenty seven members and AMD is probably trading close 0:06:58.240 --> 0:07:01.279 to twice the multiple. It is at a premium. But 0:07:01.360 --> 0:07:04.120 as you said, it's a smaller market cap name. You 0:07:04.160 --> 0:07:07.360 could argue maybe it's growing faster because it's smaller in size. 0:07:07.400 --> 0:07:10.920 But you know, for US, I think CPU certainly helps 0:07:10.920 --> 0:07:13.480 the short term, but longer term, if you look at 0:07:13.480 --> 0:07:17.480 the GPU opportunity that's much bigger, I would say GPUs 0:07:17.560 --> 0:07:20.920 probably we're talking including the custom chips, you know, a 0:07:21.000 --> 0:07:24.800 trillion dollar type SAM and the CPU. As Lisa said, 0:07:24.800 --> 0:07:26.760 it's about one hundred and twenty billion. It used to 0:07:26.800 --> 0:07:29.160 be sixty, not too long ago. So I think it's 0:07:29.280 --> 0:07:32.880 essential that AMD make progress on the GPU front. And 0:07:33.120 --> 0:07:36.720 they've announced you know, new customers, you know, Open Ai 0:07:36.840 --> 0:07:40.120 and Meta, and those customers are expected to ramp later 0:07:40.160 --> 0:07:43.080 this year and into next year. So you know, that's 0:07:43.080 --> 0:07:45.520 why we're we're actually sitting on the sidelines right now, 0:07:45.560 --> 0:07:48.200 even though the demand is very strong because of valuation. 0:07:48.280 --> 0:07:50.720 We want to see some evidence that you know, AM 0:07:50.760 --> 0:07:53.360 they can actually gain and compete against Nvidia and gain 0:07:53.440 --> 0:07:55.720 some incremental share as we go into next year. 0:07:55.800 --> 0:07:58.720 So it's about execution for Lisa, Sue talk to us 0:07:58.720 --> 0:08:01.280 a little bit about what we seeing in optical fiber 0:08:01.400 --> 0:08:04.800 exuberance today as well. Corning up fourteen percent in video 0:08:04.840 --> 0:08:06.640 saying look, I want I want to in on your 0:08:06.680 --> 0:08:08.840 shares up to five hundred million dollars worth and the 0:08:08.920 --> 0:08:13.400 right start purchase them. What can Corning bring to AI 0:08:13.600 --> 0:08:15.400 data centers? 0:08:16.000 --> 0:08:19.720 Well, at a high level, you know, AI demand is 0:08:19.720 --> 0:08:23.640 putting pressure on connectivity. You know, you know it's one 0:08:23.680 --> 0:08:26.000 thing to process the data, but you also need to 0:08:26.080 --> 0:08:29.760 move the data at the super fast speeds, and the 0:08:29.800 --> 0:08:32.280 demand has been so strong that you know, all those 0:08:32.440 --> 0:08:37.160 connectivity you know, bottlenecks are emerging and optical plays a 0:08:37.320 --> 0:08:39.840 key role in moving the data not only between you know, 0:08:39.880 --> 0:08:43.679 the servers, but also between data centers. So you know, 0:08:43.720 --> 0:08:47.040 we're seeing, you know, the supply constraints emerge across the board, 0:08:47.320 --> 0:08:49.640 and I think in videos, what EN Video is trying 0:08:49.679 --> 0:08:52.199 to do is make sure that you know, those supply 0:08:52.240 --> 0:08:55.760 constraints are not going to limit their growth and they're 0:08:55.840 --> 0:08:57.760 using their balance sheet strength. And that's one of the 0:08:57.800 --> 0:09:00.200 reasons you know, we like n Video because you know, 0:09:00.240 --> 0:09:02.480 they not only have the best products in the industry, 0:09:02.520 --> 0:09:04.840 but also have the balance sheet strength. I think that 0:09:05.000 --> 0:09:07.960 is a structural like vantage in an environment like this 0:09:08.040 --> 0:09:09.440 where everything is so tight. 0:09:10.160 --> 0:09:13.320 I'll bec analyst Streni perjury. It's really great to have 0:09:13.360 --> 0:09:14.720 your analysis on the show today. 0:09:14.760 --> 0:09:15.760 Thank you very much. Indeed. 0:09:15.840 --> 0:09:20.000 Meanwhile, sticking with all things chips, Germany's Infinian also reporting 0:09:20.040 --> 0:09:23.439 earnings forecasting revenue of around four point eight billion dollars 0:09:23.440 --> 0:09:26.000 for its fiscal third quarter that did beat expectations. 0:09:26.040 --> 0:09:28.120 The company is saying it's benefiting from spending moon on. 0:09:28.120 --> 0:09:31.319 AI infrastructure, where it's power supply solutions for data centers 0:09:31.360 --> 0:09:34.040 and very high demand. But as you see, the stock 0:09:34.080 --> 0:09:37.319 has been under pressure in European trading like twenty twenty six, 0:09:37.360 --> 0:09:40.839 they say on track to grow about ten percent coming up. 0:09:41.320 --> 0:09:45.480 Disney gets a profit boost from some successful sequels, improved 0:09:45.559 --> 0:09:49.840 streaming results, and guests spending at their parks will dig in. 0:09:49.840 --> 0:09:50.880 This has been by tech. 0:09:59.600 --> 0:10:01.880 Check in on shares of Disney having their best day 0:10:02.000 --> 0:10:04.760 in a year, currently up seven percent, the company posting 0:10:04.800 --> 0:10:07.640 stronger than expected results thanks to improve profitability from its 0:10:07.679 --> 0:10:11.160 streaming business and guests they're spending more at the parks. 0:10:11.360 --> 0:10:14.119 Here discuss is Helen and Wang, which is Philip Securities 0:10:14.160 --> 0:10:18.000 research analyst. You were impressed by the numbers and all 0:10:18.040 --> 0:10:19.320 being given by the new CEO. 0:10:20.760 --> 0:10:22.599 Yes, I think it's a pretty solid number of the 0:10:22.720 --> 0:10:26.200 m ros first earnings both revenue and EPs pis estimate 0:10:26.640 --> 0:10:29.199 and they've guided for twelve percent EPs girls for twenty 0:10:29.200 --> 0:10:31.520 twenty six, so that's for the acceleration. So I will 0:10:31.559 --> 0:10:33.320 say it's pretty good start for the new CEO. 0:10:34.360 --> 0:10:36.800 Good start when actually we thought maybe things didn't look 0:10:36.840 --> 0:10:38.760 so pretty when he first took up the reins. There 0:10:38.880 --> 0:10:41.720 was Sora unraveling the deal with open Ai. There was 0:10:41.760 --> 0:10:44.440 concerns with what's happening with Epic Games and their partnership. 0:10:44.440 --> 0:10:47.840 But more broadly, how do you think the consumer is 0:10:47.840 --> 0:10:50.679 feeling right now getting into the park, because we've got 0:10:50.720 --> 0:10:51.840 a lot of micro headwinds. 0:10:53.480 --> 0:10:57.960 Yes, looking at their experience division, they are seeing a 0:10:58.000 --> 0:11:01.600 slight decrease in their US parkeet so that is probably 0:11:01.600 --> 0:11:04.240 something paired from the wall. So fewer for as far 0:11:04.240 --> 0:11:06.720 as are traveling to the US, but we are seeing 0:11:06.760 --> 0:11:09.559 guests spending more at the US parks. So per person 0:11:09.640 --> 0:11:13.000 spending group five percent you're on year, So that means 0:11:13.160 --> 0:11:15.280 people are spending more on the tickets, on the food, 0:11:15.320 --> 0:11:18.120 on the merchandises. They're seeing very strong booking in their 0:11:18.120 --> 0:11:21.440 Disney World. Another factor that's coming is they're seeing the 0:11:21.520 --> 0:11:24.839 cruise ship having higher volume, probably because of the new 0:11:24.840 --> 0:11:28.200 introduction of their Disney Destiny and Disney Adventure that was 0:11:28.600 --> 0:11:31.480 introduced in March twenty twenty six, so that kind of 0:11:31.480 --> 0:11:34.520 gives them a forty percent increase in cruise booking capacity. 0:11:35.720 --> 0:11:37.840 I love how in your notes you really think about 0:11:38.240 --> 0:11:40.760 the flywheel effect, the IP flywheel effect. 0:11:40.800 --> 0:11:42.200 This is how this business makes sense. 0:11:42.200 --> 0:11:45.400 The fact that they've got new frozen experiences coming online. 0:11:45.440 --> 0:11:48.400 They're investing in the IP and the entertainment but also 0:11:48.600 --> 0:11:51.600 in the experience space, are you willing to take down 0:11:51.640 --> 0:11:53.480 more of that investment at the moment because they have 0:11:53.559 --> 0:11:56.600 spent a lot on cruises, they are updating the way 0:11:56.640 --> 0:11:58.440 in which they're serving people at the parks. 0:11:59.679 --> 0:12:02.920 Yes, they're definitely investing very aggressively right now, but I 0:12:02.960 --> 0:12:05.840 see it comes from a point of confidence because they're 0:12:05.880 --> 0:12:08.959 doing so well in their current business, so they're trying 0:12:09.000 --> 0:12:11.280 to expand more in order to lay out more on 0:12:11.320 --> 0:12:14.280 the lanesom Girls Wrongway. So they're coming up with a 0:12:14.320 --> 0:12:17.440 lot of major part expansion globally. They're coming up with 0:12:17.480 --> 0:12:20.839 another new cruise ship in Japan, and they're also coming 0:12:20.880 --> 0:12:23.920 up with a new scene part resulting Abu Dhabi. So 0:12:23.960 --> 0:12:26.600 I guess the war impact is very minimum for them. 0:12:27.120 --> 0:12:30.360 I guess it's a good thing because their unique value 0:12:30.440 --> 0:12:33.720 is rooted in the strong brand, reputation and the flightway effect. 0:12:34.360 --> 0:12:36.480 I think that's a really good point that even though 0:12:36.480 --> 0:12:39.400 we've got conflict geopolitical anxiety in the Middle East, they're 0:12:39.400 --> 0:12:43.400 still going ahead with what's happening in Abadabi. Just one 0:12:43.440 --> 0:12:45.920 area of concern is just the cost of doing business 0:12:45.960 --> 0:12:47.120 when it comes to sports as well. 0:12:47.160 --> 0:12:49.480 Right, ESPN did show that weakness. 0:12:49.480 --> 0:12:51.520 There is that something that you also have to take 0:12:51.520 --> 0:12:52.520 down in terms of investment. 0:12:52.520 --> 0:12:54.200 They need the content, they need to win the rights. 0:12:55.679 --> 0:13:00.000 Yes, ESPN actually the increasing revenue because of the higher 0:13:00.160 --> 0:13:04.120 subscription and affiliate fee due to their NFL transaction, But 0:13:04.240 --> 0:13:08.600 it's definitely they're showing a decreasing operating income because of 0:13:08.600 --> 0:13:11.960 the highest flora and production costs. But I guess everybody 0:13:11.960 --> 0:13:14.520 in the streaming industry right now is trying to increase 0:13:14.559 --> 0:13:17.480 their life sport because it's a large market, it has 0:13:17.480 --> 0:13:20.400 a very loyal fan base that will always be there, 0:13:20.679 --> 0:13:23.319 and everybody wanted the piece of that juicy pie and 0:13:23.400 --> 0:13:25.760 sport where are so expensive right now, especially if you 0:13:25.840 --> 0:13:28.840 want it as skill and Disney they already have the skill, 0:13:29.120 --> 0:13:30.960 so I think even though the cost is a little 0:13:30.960 --> 0:13:34.000 bit high for them, but they do have the advantage 0:13:34.200 --> 0:13:34.960 in that sector. 0:13:35.559 --> 0:13:37.120 Helena, it's great catching up with you. 0:13:37.240 --> 0:13:40.400 Thanks for joining again, Helena Wang of Philip Securities. There 0:13:40.480 --> 0:13:43.800 are all things Disney Now, it's time for talking tech. 0:13:44.120 --> 0:13:46.720 First up, White House economic advice that Kevin. 0:13:46.480 --> 0:13:49.560 Has It says a potential executive order is in the 0:13:49.600 --> 0:13:53.000 works to provide a quote clear roadmap for AI safety. 0:13:53.240 --> 0:13:54.760 Now the directive is taking shape. 0:13:54.800 --> 0:13:58.360 Weeks off, Terranthropic revealed its mythos model that could pose 0:13:58.440 --> 0:14:01.760 a global cybersecurity risk. Plus, Morgan Stanley is rolling out 0:14:01.760 --> 0:14:04.800 cryptocurrency trading on his e trade platform, charging clients at 0:14:04.880 --> 0:14:07.560 just fifty basis points, half the cost of some major 0:14:07.640 --> 0:14:10.560 rivals like Robin Hood. So latest move in a massive 0:14:10.600 --> 0:14:13.160 Wall Street pivot. The biggest banks are no longer just 0:14:13.240 --> 0:14:17.199 watching the crypto space, looking to own it. And Samsung 0:14:17.280 --> 0:14:20.680 has officially entered the trillion dollar club, making the firm 0:14:20.760 --> 0:14:23.400 only the second Asian firm after TSMC, to hit that 0:14:23.480 --> 0:14:24.720 one trillion dollar milestone. 0:14:24.720 --> 0:14:24.840 Now. 0:14:24.840 --> 0:14:28.240 The company's gain also pushed the Cosby Index past seven 0:14:28.280 --> 0:14:32.080 thousand for the first time in history. Coming up, we're 0:14:32.120 --> 0:14:34.680 going to be speaking with the Uber cfo Alargi, Christian 0:14:34.760 --> 0:14:37.200 Murphy as as the Right Haling Platform posts a second 0:14:37.280 --> 0:14:40.440 quarter outlook the beat expectations. We're talking all things AI 0:14:40.600 --> 0:14:43.160 as well as delivery the Supremo Tech. 0:14:55.040 --> 0:14:57.640 Checking in on shares of Uber company. 0:14:57.360 --> 0:15:00.440 Reporting second quarter bookings outlooks the beat expector that we're 0:15:00.480 --> 0:15:04.120 out eight point four percent as break down striving bookings 0:15:04.120 --> 0:15:08.520 growth in particular, you' a CFOs with us Alergi Krishna Murphy, ALERGI, 0:15:08.960 --> 0:15:12.520 talk to me about why we're amid the macro concerns, 0:15:12.680 --> 0:15:17.440 amid maybe a slightly worrying environment with oil prices, for example, 0:15:17.600 --> 0:15:20.480 You're still managing to push forward on bookings on demand. 0:15:21.400 --> 0:15:22.280 Thanks Caroline. 0:15:22.680 --> 0:15:25.240 So I think you know, if you think about our quarter, 0:15:25.520 --> 0:15:28.880 the first thing I'd say is we're incredibly proud of 0:15:28.960 --> 0:15:33.360 the pace with which our teams have been introducing new products, 0:15:33.400 --> 0:15:38.440 and you would have seen just recently we at our 0:15:38.520 --> 0:15:41.120 annual go Get event, we introduced a number of new 0:15:41.120 --> 0:15:44.720 products and features that meet our customers where they want 0:15:44.760 --> 0:15:49.160 to go, whether they're developed internally at uber or through 0:15:49.160 --> 0:15:52.520 our partners like Expedia, we're bringing them best of breed solutions. 0:15:52.800 --> 0:15:57.480 So that's setting us up for incredibly strong top line momentum, 0:15:58.400 --> 0:16:01.960 and we delivered twenty one percent growth in the quarter. 0:16:02.040 --> 0:16:04.640 This is the third successive quarter where we've done that 0:16:04.760 --> 0:16:09.640 kind of a mark for the company, and we are 0:16:09.720 --> 0:16:13.560 also in addition to those product innovations organically in our core, 0:16:13.840 --> 0:16:17.160 we also reported that we were able to scale our 0:16:17.680 --> 0:16:21.200 nascent autonomous vehicles business ten x here on year, which 0:16:21.240 --> 0:16:24.080 is again a really good starting possession for us to 0:16:24.160 --> 0:16:24.560 be at. 0:16:25.200 --> 0:16:25.400 Now. 0:16:25.400 --> 0:16:29.040 We're doing all of this in a very choppy macro environment, 0:16:29.080 --> 0:16:32.200 as you rightly pointed out. I'm happy to talk about 0:16:32.240 --> 0:16:37.000 some of the detracting items there, but what we have 0:16:37.200 --> 0:16:41.640 been doing as we get this growth, we've been focused 0:16:41.640 --> 0:16:46.880 on extremely disciplined operations from a cost management standpoint, and 0:16:47.440 --> 0:16:51.920 we're embracing AI increasingly to drive more efficiency for the company. 0:16:52.360 --> 0:16:57.040 So that's allowing us to report EPs growth of forty 0:16:57.080 --> 0:16:59.240 four percent here on you as well on top of 0:16:59.240 --> 0:17:01.000 that twenty one percent and top line growth, and it's 0:17:01.040 --> 0:17:03.520 setting us up really well for the rest of the year. 0:17:03.560 --> 0:17:06.800 And you see that in our outlook, which I think 0:17:06.920 --> 0:17:10.120 met and exceeded expectations on both top and bottom line. 0:17:10.200 --> 0:17:11.960 Let's take into that Uber Expedia partnership. 0:17:11.960 --> 0:17:13.560 It's only about a week old or so, and I 0:17:13.560 --> 0:17:15.879 can understand that it's sort about adding hotel bookings, Like, 0:17:15.960 --> 0:17:18.760 is this some sort of real uptick to subscriptions? Do 0:17:18.800 --> 0:17:20.400 you think in the longer term, how does it help 0:17:20.520 --> 0:17:23.680 just bring more and more people back to the app 0:17:23.760 --> 0:17:24.320 time and again? 0:17:24.440 --> 0:17:28.000 Yeah, yeah, So I think the important thing to know 0:17:28.160 --> 0:17:32.400 there is we think consumers who engage with our products 0:17:32.400 --> 0:17:36.719 across our portfolio are incredibly valuable to us, and today 0:17:36.800 --> 0:17:39.719 only about twenty percent of our monthly active consumers engage 0:17:39.720 --> 0:17:43.240 across the platform on both mobility and delivery services, but 0:17:43.440 --> 0:17:48.200 when they do, they drive significantly higher growth, bookings profits 0:17:48.240 --> 0:17:51.919 for the company. And underpinning all of that activity for 0:17:52.040 --> 0:17:54.280 US is our Uber one program, right, and we talked 0:17:54.320 --> 0:17:57.879 about getting to about fifty million members as of this quarter. 0:17:58.200 --> 0:17:59.880 We added about twenty million. 0:17:59.600 --> 0:18:03.000 Members the last year alone, and now these members drive 0:18:03.080 --> 0:18:07.440 fifty percent of our gross bookings for the company. When 0:18:07.480 --> 0:18:10.160 you think about a partnership like Experia, what we are 0:18:10.200 --> 0:18:13.000 trying to do is to expand the surface area of 0:18:13.040 --> 0:18:17.480 what we consider cross platform and today's mobility and delivery 0:18:17.480 --> 0:18:21.680 in the core. But hotels are a very adjacent opportunity 0:18:21.680 --> 0:18:25.760 for US, where fifteen percent of our mobility gross bookings 0:18:25.800 --> 0:18:31.240 comes from airport trips, forty percent of our US riders 0:18:31.359 --> 0:18:35.040 take trips outside of their home cities, and then last 0:18:35.119 --> 0:18:37.840 year we did one point five billion trips globally that 0:18:37.960 --> 0:18:41.480 happened in outside users' home cities. So when you bring 0:18:41.520 --> 0:18:45.159 in a program like this, it allows us to bring 0:18:45.320 --> 0:18:49.320 the best prices to our consumers on hotel bookings from 0:18:49.359 --> 0:18:53.159 experience platform, and in addition, we're giving them ten percent 0:18:53.240 --> 0:18:56.040 cash back which is quite incredibly valuable, which they come 0:18:56.080 --> 0:18:56.760 back and spend. 0:18:56.640 --> 0:18:57.080 On our plot. 0:18:57.119 --> 0:18:58.680 Can I talk about the B to B business? 0:18:58.760 --> 0:19:00.560 You want it to become a ten million dollar plus 0:19:00.560 --> 0:19:01.520 business briefly? 0:19:01.760 --> 0:19:01.840 Like? 0:19:02.800 --> 0:19:04.080 What are the growth markets for that? 0:19:05.480 --> 0:19:05.720 Yeah? 0:19:05.760 --> 0:19:10.159 So very exciting trajectory there for us as well. We 0:19:10.320 --> 0:19:13.840 noted that we're at now five billion in gross bookings 0:19:13.840 --> 0:19:16.679 on that business and it's growing forty five percent relative 0:19:16.720 --> 0:19:18.879 to that twenty one percent total that we talked about. 0:19:19.920 --> 0:19:21.880 When you think about our B to B business, it's 0:19:21.880 --> 0:19:26.439 effectively bringing ubers services across both mobility and delivery to 0:19:27.520 --> 0:19:34.200 enterprise grade sort of modality to customers across the enterprise stack. 0:19:35.840 --> 0:19:38.600 When we where we are today, we are at about 0:19:38.600 --> 0:19:41.880 three hundred thousand organizations globally that are using our services 0:19:41.880 --> 0:19:45.560 through this offering, and we do think that over time 0:19:45.640 --> 0:19:48.760 we can service as many as a million organizations globally 0:19:48.800 --> 0:19:51.440 and that would allow us to get to five get 0:19:51.480 --> 0:19:53.160 from five to ten billion dollars there. 0:19:53.560 --> 0:19:55.160 It was CFO Alergy. 0:19:55.520 --> 0:19:57.639 Christian Murphy, thank you very much indeed for joining us 0:19:57.640 --> 0:19:59.920 today on all things earnings. Let's turn our attention to 0:20:00.119 --> 0:20:03.480 energy now, because Microsoft is considering delaying or abandoning is 0:20:03.520 --> 0:20:07.399 ambitious clean energy targets. According to sources, the reason AI 0:20:07.520 --> 0:20:09.520