1 00:00:02,279 --> 00:00:05,560 Speaker 1: From the heart of where innovation, money and power COLLI 2 00:00:06,400 --> 00:00:10,960 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:11,000 --> 00:00:27,600 Speaker 1: Emily Jay. I'm Emily Check in San Francisco, and this 4 00:00:27,640 --> 00:00:30,280 Speaker 1: is Bloomberg Technology. Coming up in the next hour, broad 5 00:00:30,320 --> 00:00:32,879 Speaker 1: Common talks to buy the m Ware, setting up a 6 00:00:32,920 --> 00:00:36,360 Speaker 1: blockbuster tech deal that would vault the chip maker into 7 00:00:36,400 --> 00:00:40,480 Speaker 1: a highly specialized area of software. We'll tell you everything 8 00:00:40,520 --> 00:00:44,000 Speaker 1: we know so far about this Bloomberg School. Plus I'm 9 00:00:44,080 --> 00:00:47,800 Speaker 1: joined exclusively by Shantan now Ryan, CEO and share of Adobe. 10 00:00:47,840 --> 00:00:50,280 Speaker 1: We've got a lot to talk about, including how Adobe 11 00:00:50,400 --> 00:00:53,440 Speaker 1: is handling this market sell off, plus his outlook for 12 00:00:53,440 --> 00:00:58,320 Speaker 1: the company's future and plans for the metaverse. And coin 13 00:00:58,360 --> 00:01:02,680 Speaker 1: bases fall from rates, how a bear market, regulatory pressure 14 00:01:02,680 --> 00:01:05,520 Speaker 1: and falling crypto prices are piling up on the largest 15 00:01:05,600 --> 00:01:09,080 Speaker 1: US crypto exchange, coin Base has now lost fifty one 16 00:01:09,440 --> 00:01:13,040 Speaker 1: billion dollars in market values since its IPO. More in 17 00:01:13,040 --> 00:01:15,720 Speaker 1: our crypto report later this hour. Let's talk a whole 18 00:01:15,720 --> 00:01:18,200 Speaker 1: lot more about that Broadcom deal for vm Ware. I 19 00:01:18,240 --> 00:01:20,759 Speaker 1: want to bring in bloom brig Leanna Baker, who covers 20 00:01:20,840 --> 00:01:22,319 Speaker 1: M and A for US, and I'm also joined by 21 00:01:22,400 --> 00:01:25,520 Speaker 1: James Fish and analyst at Piper Sandler who focuses specifically 22 00:01:25,920 --> 00:01:30,440 Speaker 1: on infrastructure and communication software. Leana, first of all, tell 23 00:01:30,520 --> 00:01:32,960 Speaker 1: us what we know what we don't know at this point. Sure, 24 00:01:33,120 --> 00:01:35,720 Speaker 1: so we know that Broadcom is in talks by vm 25 00:01:35,760 --> 00:01:37,840 Speaker 1: where it's a blockbuster or deal. We don't know the 26 00:01:37,880 --> 00:01:41,000 Speaker 1: exact price. But before our story, you know, shares are 27 00:01:41,000 --> 00:01:44,280 Speaker 1: already trading valuing vm Ware it over forty billions. So 28 00:01:44,360 --> 00:01:47,400 Speaker 1: this is really going to be a large one and 29 00:01:47,520 --> 00:01:50,520 Speaker 1: the deal is probably imminent. We reported it's coming later 30 00:01:50,600 --> 00:01:52,560 Speaker 1: this week and it's going to be one of the 31 00:01:52,560 --> 00:01:55,880 Speaker 1: biggest tech deals in years. So, Jane, if we're looking 32 00:01:55,880 --> 00:01:59,280 Speaker 1: at a potential sixty billion dollar valuation for vm Ware 33 00:01:59,280 --> 00:02:01,080 Speaker 1: as part of this, l who do you think, Wayne, 34 00:02:01,080 --> 00:02:04,240 Speaker 1: who loses in this tie up? Um? Look at a 35 00:02:04,480 --> 00:02:08,640 Speaker 1: story for Broadcommon talking with my colleague Harshkmar where you 36 00:02:08,680 --> 00:02:10,920 Speaker 1: know they've done a tremendous job on rolling up some 37 00:02:10,919 --> 00:02:13,960 Speaker 1: of these software assets, whether it's c A and Semantic together. 38 00:02:14,160 --> 00:02:16,160 Speaker 1: Actually an apt Meta was a small one that they 39 00:02:16,200 --> 00:02:19,680 Speaker 1: did last year. Um. But at the end of the day, 40 00:02:19,960 --> 00:02:23,640 Speaker 1: you know, the playbook that the CEO of Broadcom runs, 41 00:02:23,880 --> 00:02:27,640 Speaker 1: you know, fits well with vm work. For the most part, 42 00:02:28,080 --> 00:02:32,040 Speaker 1: we see vm Ware is fairly complimentary to the existing 43 00:02:32,160 --> 00:02:37,240 Speaker 1: software segments that they have. There is some overlap, especially 44 00:02:37,280 --> 00:02:39,720 Speaker 1: as you start to think about the Carbon Black deal 45 00:02:39,760 --> 00:02:43,240 Speaker 1: that vm Ware did with for example, the Semantic endpoint 46 00:02:43,240 --> 00:02:47,359 Speaker 1: protection business UM. But overall, you know, vm Ware has 47 00:02:47,400 --> 00:02:51,120 Speaker 1: been a drag versus some of the others in infrastructure 48 00:02:51,919 --> 00:02:55,079 Speaker 1: because of the Delta vestiture overhang, because of the move 49 00:02:55,120 --> 00:02:58,639 Speaker 1: towards public cloud, and because of its ongoing transition. So 50 00:02:58,800 --> 00:03:00,400 Speaker 1: you know, it can be a win win for both 51 00:03:00,400 --> 00:03:03,160 Speaker 1: sides in this case, Leona, how close is this to 52 00:03:03,240 --> 00:03:05,280 Speaker 1: being a done deal? I know we're reporting it could 53 00:03:05,280 --> 00:03:09,000 Speaker 1: potentially happen this week. It's funny with Broadcom, you never know. 54 00:03:09,160 --> 00:03:11,200 Speaker 1: Last summer they were close to a deal with something 55 00:03:11,240 --> 00:03:15,160 Speaker 1: called sas Institute, a deal valued close to twenty billion, 56 00:03:15,200 --> 00:03:18,200 Speaker 1: and it fell apart. And then three years ago Broadcom 57 00:03:18,200 --> 00:03:20,239 Speaker 1: was close to buying all of Semantic and that also 58 00:03:20,320 --> 00:03:23,639 Speaker 1: fell apart. So you never know with Broadcom CEO Hawk ten. 59 00:03:23,800 --> 00:03:26,760 Speaker 1: But this one, from what we know, it's still in talks. Uh, 60 00:03:26,880 --> 00:03:29,560 Speaker 1: not in danger right now of of falling apart, but 61 00:03:29,720 --> 00:03:32,560 Speaker 1: a deal isn't done until it gets the finish line, 62 00:03:32,560 --> 00:03:34,240 Speaker 1: and as you know with Elon Musk and Twitter, even 63 00:03:34,280 --> 00:03:35,760 Speaker 1: if you do get to the finish line, it may 64 00:03:35,760 --> 00:03:41,240 Speaker 1: not be a done deal exactly. Um Qualcom. Broadcom did 65 00:03:41,240 --> 00:03:43,960 Speaker 1: try to buy qual Calm back in which also would 66 00:03:43,960 --> 00:03:46,960 Speaker 1: have been a massive deal that didn't happen because of 67 00:03:47,000 --> 00:03:51,800 Speaker 1: Trump administration concerns about Broadcom's headquarters in Singapore. But we 68 00:03:51,840 --> 00:03:54,920 Speaker 1: did catch up with Qualcom CEO Cristiano I'm on in 69 00:03:55,120 --> 00:03:58,880 Speaker 1: Davos earlier asked his thoughts on this potential tie up 70 00:03:58,920 --> 00:04:01,560 Speaker 1: between Broadcom and vm ware. Take a listen to what 71 00:04:01,600 --> 00:04:05,280 Speaker 1: he had to say. It's really for Broadcom to comment. 72 00:04:05,360 --> 00:04:07,080 Speaker 1: By the way, I look, Broadcom has become a more 73 00:04:07,080 --> 00:04:09,520 Speaker 1: of a software company and uh, you know with some 74 00:04:09,560 --> 00:04:11,760 Speaker 1: of the acquisitions they made in the past, and I 75 00:04:11,760 --> 00:04:14,480 Speaker 1: think vm or is a software company. We're going to 76 00:04:14,600 --> 00:04:17,400 Speaker 1: the different direction. I think we will continue to be 77 00:04:17,760 --> 00:04:21,760 Speaker 1: a semiconductor company, focus in the growth that we have 78 00:04:22,279 --> 00:04:26,159 Speaker 1: in this industry, especially at the edge, and uh, we'll 79 00:04:26,160 --> 00:04:31,279 Speaker 1: continue to see not consolidation but conversions of all those opportunities. 80 00:04:31,680 --> 00:04:37,080 Speaker 1: James Broadcom CEO Hackten as ambitious and seemingly acquisitive as 81 00:04:37,120 --> 00:04:40,000 Speaker 1: effort is Broadcom even a chip company anymore, or is 82 00:04:40,040 --> 00:04:43,000 Speaker 1: it more of a software company? Well, to be fair, 83 00:04:43,000 --> 00:04:44,919 Speaker 1: I don't I don't cover Broadcom, but you know that 84 00:04:45,040 --> 00:04:48,920 Speaker 1: the chip part does still overwhelmed the software piece. But 85 00:04:48,960 --> 00:04:51,640 Speaker 1: when you think about it, you have a roughly seven 86 00:04:51,720 --> 00:04:55,160 Speaker 1: eight billion dollars running right on the software side, and 87 00:04:55,320 --> 00:04:57,320 Speaker 1: when you look at what vm Ware could do, that 88 00:04:57,360 --> 00:05:00,080 Speaker 1: could essentially triple the side of the software business and 89 00:05:00,080 --> 00:05:02,159 Speaker 1: and kind of start to bring it more in line 90 00:05:02,200 --> 00:05:05,560 Speaker 1: with the UH semiconductor side of the business. James, what 91 00:05:05,600 --> 00:05:07,040 Speaker 1: do you make of the fact that this is happening 92 00:05:07,040 --> 00:05:09,800 Speaker 1: when we are in the midst of a tech sell off, 93 00:05:09,839 --> 00:05:13,040 Speaker 1: and do you expect more big deals of this nature. Well, 94 00:05:13,520 --> 00:05:14,960 Speaker 1: it's a good question. I actually just wanted to come 95 00:05:15,080 --> 00:05:19,359 Speaker 1: on only honest point there. It probably does trigger the 96 00:05:19,480 --> 00:05:23,120 Speaker 1: Chinese regulatories just because vm Ware does have a decently 97 00:05:23,120 --> 00:05:26,159 Speaker 1: sized business there. Um that would kind of be over 98 00:05:26,240 --> 00:05:29,000 Speaker 1: that threshold rate that that's typically assigned there. So it 99 00:05:29,040 --> 00:05:31,920 Speaker 1: would expect China to be someone involved here on the 100 00:05:31,960 --> 00:05:35,080 Speaker 1: approval process needing to get done. And you know, it's 101 00:05:35,200 --> 00:05:38,640 Speaker 1: very few companies that could actually swallow something the size 102 00:05:38,839 --> 00:05:42,840 Speaker 1: of vm Ware in this case. Um, And let's face it. 103 00:05:42,920 --> 00:05:45,760 Speaker 1: Some of the hyper scalers would have some challenge and 104 00:05:45,800 --> 00:05:47,440 Speaker 1: getting this kind of deal done, so it kind of 105 00:05:47,440 --> 00:05:50,360 Speaker 1: removes them to a degree from the equation I would 106 00:05:50,440 --> 00:05:54,039 Speaker 1: say it's impossible, but it does present some problems on 107 00:05:54,240 --> 00:06:00,640 Speaker 1: that and um, but it is the case where um, 108 00:06:00,680 --> 00:06:02,280 Speaker 1: you know, at the end of the day, broadcom makes 109 00:06:02,360 --> 00:06:08,040 Speaker 1: makes a lot of sense and you know, for um, 110 00:06:08,200 --> 00:06:11,280 Speaker 1: for really what needs to get done here, Um, we 111 00:06:11,640 --> 00:06:15,159 Speaker 1: see pretty smooth process. It just might take some time. 112 00:06:15,240 --> 00:06:20,200 Speaker 1: And um yeah, all right, James Fish, Piper Sandler, thanks 113 00:06:20,240 --> 00:06:22,520 Speaker 1: for your perspective. Leanna. We're going to continue to watch 114 00:06:22,560 --> 00:06:34,520 Speaker 1: your teams reporting on this deal. Thank you both. Airbnb 115 00:06:34,760 --> 00:06:38,120 Speaker 1: is closing its business in China. According to Bloomberg sources, 116 00:06:38,200 --> 00:06:42,960 Speaker 1: Chinese starts traveling abroad have been a bigger opportunity for Airbnb, 117 00:06:43,200 --> 00:06:46,279 Speaker 1: with its domestic business inside China accounting for just a 118 00:06:46,320 --> 00:06:50,560 Speaker 1: percent of Airbnb's revenue. AIRBNBC O Brian Chesky addressed all 119 00:06:50,600 --> 00:06:53,560 Speaker 1: of this in my last interview with him on Bloomberg Television. 120 00:06:53,600 --> 00:06:58,120 Speaker 1: Take a listen. You know, our China business has primarily 121 00:06:58,160 --> 00:07:03,000 Speaker 1: been people in China leaving China obviously crossing a border, 122 00:07:03,040 --> 00:07:06,080 Speaker 1: so it's cross border travel going to other countries. Japan 123 00:07:06,200 --> 00:07:09,159 Speaker 1: was a really popular corridor. South Korea they're going to 124 00:07:09,320 --> 00:07:12,600 Speaker 1: like Europe, They're going to other places. Because of the 125 00:07:12,600 --> 00:07:15,920 Speaker 1: situation of China. In COVID, there's not a huge amount 126 00:07:15,960 --> 00:07:18,240 Speaker 1: of outbound business right now, and so our business in 127 00:07:18,320 --> 00:07:20,560 Speaker 1: China is not super robust and it's going to be 128 00:07:20,600 --> 00:07:23,440 Speaker 1: probably a while. It's really gonna track with the health crisis, 129 00:07:25,080 --> 00:07:29,760 Speaker 1: all mainland Chinese listings will be taken down by this summer, 130 00:07:29,800 --> 00:07:34,320 Speaker 1: according to sources. Alright, speaking of AIRBNBC Obrian Chesky also 131 00:07:34,480 --> 00:07:37,200 Speaker 1: tweeting a number of times about the difficulties fighting tech 132 00:07:37,320 --> 00:07:40,880 Speaker 1: and startups, in particular given the volatility we are seeing 133 00:07:40,960 --> 00:07:42,640 Speaker 1: in the markets. For more on all this and just 134 00:07:42,800 --> 00:07:45,800 Speaker 1: how low things could go, I'm joined by Dan Suzuki. 135 00:07:45,800 --> 00:07:49,360 Speaker 1: He's the chief investment officer at Richard Bernstein Advisory, which 136 00:07:49,360 --> 00:07:53,080 Speaker 1: has about fifteen billion dollars in assets under management. Dan, 137 00:07:53,120 --> 00:07:55,080 Speaker 1: thank you so much for joining us. So looked, did 138 00:07:55,080 --> 00:07:56,760 Speaker 1: we just hit the bottom and are we on our 139 00:07:56,800 --> 00:07:59,600 Speaker 1: way back up? Or is there a lot lower we 140 00:07:59,640 --> 00:08:04,000 Speaker 1: could go? Well, Emily, I think the reality is that 141 00:08:04,000 --> 00:08:07,200 Speaker 1: that nobody really knows for sure. Um, but I would 142 00:08:07,200 --> 00:08:09,679 Speaker 1: say that the you don't want to sort of jump 143 00:08:09,720 --> 00:08:12,680 Speaker 1: in here simply because you know, regardless you're going to 144 00:08:12,760 --> 00:08:15,080 Speaker 1: get these big moves and markets on both sides. But 145 00:08:15,480 --> 00:08:17,560 Speaker 1: you know, it all comes back to us. You know, 146 00:08:17,760 --> 00:08:19,640 Speaker 1: why do you Why would you buy? And I think 147 00:08:19,640 --> 00:08:22,000 Speaker 1: it's when the data tells you should buy? And right 148 00:08:22,200 --> 00:08:25,040 Speaker 1: the issue that the markets content have is despite the 149 00:08:25,080 --> 00:08:27,200 Speaker 1: fact that you have this, you've had this sell off, 150 00:08:27,440 --> 00:08:31,320 Speaker 1: profits are still slowing, liquidity is still tightening, and you know, 151 00:08:31,520 --> 00:08:33,800 Speaker 1: evaluations why it come down a little bit, there's still 152 00:08:33,840 --> 00:08:36,520 Speaker 1: quite elevated certain parts of the market. So that's not 153 00:08:36,559 --> 00:08:39,560 Speaker 1: a combination of factors that tells you you want to 154 00:08:39,640 --> 00:08:41,959 Speaker 1: jump in feed first to markets, even if you think 155 00:08:42,000 --> 00:08:45,199 Speaker 1: that they've gotten a little bit cheaper. So let's talk 156 00:08:45,240 --> 00:08:48,400 Speaker 1: about tech in particular. Just what kind of a roller 157 00:08:48,400 --> 00:08:51,520 Speaker 1: coaster are you expecting tech itself to be on over 158 00:08:51,520 --> 00:08:55,360 Speaker 1: the next weeks and months? Yeah, you know, to be honest, 159 00:08:55,440 --> 00:08:57,360 Speaker 1: I think that we are at you know, we in 160 00:08:57,360 --> 00:09:00,600 Speaker 1: the early stages of a new paradigm him and a 161 00:09:00,640 --> 00:09:03,920 Speaker 1: new secular leadership in stocks, and that secular leadership is 162 00:09:03,960 --> 00:09:06,840 Speaker 1: not going to be the same as the leadership over 163 00:09:06,880 --> 00:09:09,640 Speaker 1: the last ten or fifteen years. I mean, investors always 164 00:09:09,679 --> 00:09:13,280 Speaker 1: invest in the rear view mirror, you know, but this 165 00:09:13,360 --> 00:09:16,400 Speaker 1: is probably a time given the huge shifts, you know, 166 00:09:16,480 --> 00:09:19,599 Speaker 1: the tectonic shifts we're seeing in the macro backdrop, that 167 00:09:19,640 --> 00:09:23,120 Speaker 1: are screaming that, you know, the backdrop is changing. So 168 00:09:23,320 --> 00:09:26,000 Speaker 1: it's it should be no, it should be obvious that 169 00:09:26,040 --> 00:09:28,960 Speaker 1: the probably the leadership of markets is going to change 170 00:09:29,200 --> 00:09:32,320 Speaker 1: with all this happening. Um. I I think this is 171 00:09:32,320 --> 00:09:33,800 Speaker 1: not going to be a short term thing. And this 172 00:09:33,880 --> 00:09:36,200 Speaker 1: is something we've been saying that you know, tech and 173 00:09:36,400 --> 00:09:40,240 Speaker 1: innovation and disruption. While we believe in the story, you know, 174 00:09:40,320 --> 00:09:43,479 Speaker 1: people have got ahead of themselves in terms of their evaluations, 175 00:09:43,480 --> 00:09:45,920 Speaker 1: in terms of the expectations, and it's created a bubble. 176 00:09:46,360 --> 00:09:48,880 Speaker 1: Uh And and that bubble is in the process of deflating. 177 00:09:48,920 --> 00:09:50,920 Speaker 1: And if you look at the history of bubbles, they 178 00:09:50,920 --> 00:09:53,920 Speaker 1: don't softly and quickly correct over a six month period. 179 00:09:54,120 --> 00:09:57,160 Speaker 1: That typically takes longer, and they usually go down more 180 00:09:57,200 --> 00:09:59,720 Speaker 1: than what we've seen so far, despite the fact that 181 00:09:59,760 --> 00:10:03,079 Speaker 1: you have sometimes monster rallies on the way down. Um 182 00:10:03,200 --> 00:10:04,800 Speaker 1: So there's nothing to say you can't get that. But 183 00:10:04,880 --> 00:10:07,959 Speaker 1: I would not be jumping in here like some others 184 00:10:08,000 --> 00:10:09,959 Speaker 1: are saying this is a buying opportunity of a lifetime. 185 00:10:10,240 --> 00:10:13,000 Speaker 1: I just don't think so. Now we're just getting some 186 00:10:13,080 --> 00:10:16,360 Speaker 1: headlines from a new filing that just came out from 187 00:10:16,800 --> 00:10:21,560 Speaker 1: snap Snaps saying that they are expecting their EBITDA and 188 00:10:21,920 --> 00:10:24,040 Speaker 1: revenue in the second quarter to come in at the 189 00:10:24,080 --> 00:10:27,559 Speaker 1: low end of their guidance, saying that the macro economic 190 00:10:27,640 --> 00:10:31,760 Speaker 1: environment has deteriorate, deteriorated much more quickly than they thought. 191 00:10:31,840 --> 00:10:35,040 Speaker 1: What do you make of this? Well, I think you 192 00:10:35,040 --> 00:10:38,720 Speaker 1: know there there there's two important takeaways here. You know, one, 193 00:10:39,280 --> 00:10:43,640 Speaker 1: this is just another example of you know, companies results 194 00:10:43,720 --> 00:10:46,600 Speaker 1: over the last earning season or two that have had 195 00:10:46,640 --> 00:10:52,120 Speaker 1: to sort of bring down these un unattainable, unrealistic investor 196 00:10:52,120 --> 00:10:55,640 Speaker 1: expectations down to earth. I think the two unrealistic expectations 197 00:10:55,640 --> 00:10:58,040 Speaker 1: have been that you're going to continue to see growth 198 00:10:58,080 --> 00:11:00,640 Speaker 1: at the same trajectory you have over the last feyears 199 00:11:00,720 --> 00:11:03,600 Speaker 1: and all Secondarily, that you're going to see all these 200 00:11:03,600 --> 00:11:07,040 Speaker 1: companies be winners. I think you're seeing company after company 201 00:11:07,160 --> 00:11:08,760 Speaker 1: tell you that that's not going to be the case. 202 00:11:09,240 --> 00:11:13,040 Speaker 1: Underlying growth is slowing as these companies mature and it 203 00:11:13,040 --> 00:11:16,760 Speaker 1: gets more competitive, and that's one thing. The second thing 204 00:11:17,040 --> 00:11:20,040 Speaker 1: that I think is critical is that the market continues 205 00:11:20,080 --> 00:11:24,720 Speaker 1: to underestimate the economic sensitivity of these tech stocks. I 206 00:11:24,760 --> 00:11:27,160 Speaker 1: think that when you when you think about it, you 207 00:11:27,200 --> 00:11:30,600 Speaker 1: know what if the economy starts to slow, You're gonna 208 00:11:30,640 --> 00:11:33,200 Speaker 1: cut their number of streaming services, you're gonna use, companies 209 00:11:33,240 --> 00:11:36,000 Speaker 1: are gonna cut their advertising spending. They're gonna have less 210 00:11:36,040 --> 00:11:40,200 Speaker 1: software investments, You're gonna buy less discretionary you know, high 211 00:11:40,240 --> 00:11:44,760 Speaker 1: expensive technology goods, and so technology is very cyclical. It 212 00:11:44,880 --> 00:11:47,800 Speaker 1: just wasn't during the pandemic, and so as growth continues 213 00:11:47,800 --> 00:11:50,480 Speaker 1: as slow, that's gonna be a headwind. And the big 214 00:11:50,480 --> 00:11:53,000 Speaker 1: issue is not just that things are gonna slow, but 215 00:11:53,160 --> 00:11:55,480 Speaker 1: expectations just aren't there yet. So I think that's why 216 00:11:55,480 --> 00:11:58,840 Speaker 1: you get these big ratings as you re rate those expectations. 217 00:11:59,360 --> 00:12:03,880 Speaker 1: So Snap shares now down in twenty two percent after hours, 218 00:12:03,880 --> 00:12:05,560 Speaker 1: We're going to continue to follow that. Dan, I'd love 219 00:12:05,600 --> 00:12:08,760 Speaker 1: to get your thoughts on this pending potentially pending deal 220 00:12:09,000 --> 00:12:12,839 Speaker 1: between Broadcom and vm Ware would be a massive consolidation 221 00:12:12,840 --> 00:12:14,240 Speaker 1: in the tech space. Do you think we're going to 222 00:12:14,360 --> 00:12:18,479 Speaker 1: see more M and A like this given the environment 223 00:12:19,280 --> 00:12:21,000 Speaker 1: or not, given that what we're seeing is actually a 224 00:12:21,080 --> 00:12:25,880 Speaker 1: huge premium on where VM is, where is trading today. Yeah, 225 00:12:25,920 --> 00:12:27,760 Speaker 1: I think you know, if you if you think about 226 00:12:27,840 --> 00:12:32,240 Speaker 1: just overall trends, it's not it's it's not you know, 227 00:12:32,280 --> 00:12:34,720 Speaker 1: out of the norm to see this type of action. 228 00:12:34,760 --> 00:12:37,600 Speaker 1: I mean it, you know very much. Typically what you 229 00:12:37,640 --> 00:12:41,280 Speaker 1: see with company the way companies act is very similar 230 00:12:41,280 --> 00:12:43,360 Speaker 1: to the way investors act. And so that's why you 231 00:12:43,400 --> 00:12:46,920 Speaker 1: see share buybacks tend to peak at market highs. M 232 00:12:46,960 --> 00:12:49,360 Speaker 1: and A activity tends to peak, you know, at peaks 233 00:12:49,360 --> 00:12:52,960 Speaker 1: of markets, and then even after things start to roll over, 234 00:12:53,280 --> 00:12:56,160 Speaker 1: you tend to see a lot of momentum with investor 235 00:12:56,200 --> 00:12:59,480 Speaker 1: activity as well as company activity because they think, you know, 236 00:12:59,480 --> 00:13:03,280 Speaker 1: they're getting big sale price on the on these assets. Uh. 237 00:13:03,280 --> 00:13:05,880 Speaker 1: And I think that that's kind of what you're seeing today. 238 00:13:06,200 --> 00:13:07,960 Speaker 1: That will probably dry up, and that will be the 239 00:13:08,000 --> 00:13:10,440 Speaker 1: sign that you know, you're really starting to see things 240 00:13:10,520 --> 00:13:14,120 Speaker 1: roll over and that you're reaching that auto. All right, 241 00:13:14,120 --> 00:13:16,280 Speaker 1: We're gonna continue to watch all of this. Dan Tazuki, 242 00:13:16,440 --> 00:13:20,000 Speaker 1: Richard Bernstein Advisers, thank you for sharing your perspective with us. 243 00:13:20,400 --> 00:13:22,679 Speaker 1: And coming up, we're gonna hear from Intel CEO in 244 00:13:22,760 --> 00:13:25,160 Speaker 1: Davos on all things Chip and a progress update on 245 00:13:25,160 --> 00:13:28,480 Speaker 1: supply chain pain, plus his thoughts on that vm Ware 246 00:13:28,480 --> 00:13:31,200 Speaker 1: a deal given that he was of course previously c 247 00:13:31,200 --> 00:13:41,720 Speaker 1: CEO of vm Ware. This is Bloomberg continuing our coverage 248 00:13:41,720 --> 00:13:44,480 Speaker 1: of a potential acquisition of vm Ware by Broadcom. We 249 00:13:44,520 --> 00:13:47,920 Speaker 1: spoke with Intel CEO Pat gal Singer from Davos. He was, 250 00:13:47,960 --> 00:13:51,240 Speaker 1: of course the former CEO of vm Where here he 251 00:13:51,360 --> 00:13:53,520 Speaker 1: is with my colleague, has Linda a mean talking about 252 00:13:53,559 --> 00:13:59,280 Speaker 1: all things? Also chip supply Yeah, no, we we definitely 253 00:13:59,280 --> 00:14:04,000 Speaker 1: think that the applied demand balances and uh, you know, 254 00:14:04,040 --> 00:14:06,679 Speaker 1: a year ago, I said twenty three. Since then, we've 255 00:14:06,720 --> 00:14:10,120 Speaker 1: seen a number of equipment supply chains move out, so 256 00:14:10,240 --> 00:14:12,640 Speaker 1: our equipment coming into the fabs that we're building that 257 00:14:12,720 --> 00:14:16,160 Speaker 1: has moved out. So overall four until we start to 258 00:14:16,160 --> 00:14:19,880 Speaker 1: see a reasonable balancing of semiconductor supply chain. So what 259 00:14:19,960 --> 00:14:21,880 Speaker 1: I get worse from here before it gets better, because 260 00:14:21,880 --> 00:14:23,280 Speaker 1: when you take a look at the ports and China, 261 00:14:23,320 --> 00:14:26,480 Speaker 1: for instance, we're talking about fifties sixty ships just waiting 262 00:14:26,480 --> 00:14:29,880 Speaker 1: to unload, and of course, uh, that's causing a lot 263 00:14:29,880 --> 00:14:32,600 Speaker 1: of headaches. Oh yeah, the supply chain issues that we've 264 00:14:32,640 --> 00:14:35,120 Speaker 1: seen in China. But it comes on the back of 265 00:14:35,200 --> 00:14:37,760 Speaker 1: many other supply chain issues. So we're already sort of 266 00:14:37,760 --> 00:14:39,680 Speaker 1: beaten down and so we have to work through it. 267 00:14:40,000 --> 00:14:42,520 Speaker 1: And maybe the you know, softening of the economy, a 268 00:14:42,560 --> 00:14:45,280 Speaker 1: little bit of consumer softness, gives us just a little 269 00:14:45,280 --> 00:14:48,440 Speaker 1: bit of breath, but you know, we're still out and 270 00:14:48,480 --> 00:14:52,480 Speaker 1: obviously the Shanghai ports have created a bit more turbulous 271 00:14:52,520 --> 00:14:55,600 Speaker 1: that we're managing through. Near term. We talk about a slowdown, 272 00:14:55,680 --> 00:14:58,320 Speaker 1: in fact, a global slowdown, although we've seen a pushback 273 00:14:58,320 --> 00:15:01,400 Speaker 1: from Crystalline and Jeva saying we're not looking at a 274 00:15:01,400 --> 00:15:05,120 Speaker 1: global recession, but definitely a slowdown. What do that mean, 275 00:15:05,200 --> 00:15:08,680 Speaker 1: demand destruction? What assumptions are you making? Well, we definitely 276 00:15:08,720 --> 00:15:11,840 Speaker 1: see a bit of softening on the consumer side. How 277 00:15:11,880 --> 00:15:13,800 Speaker 1: much softening, I mean, can you give a number to that? 278 00:15:14,080 --> 00:15:15,880 Speaker 1: Um you know, as you saw on our earnings, you know, 279 00:15:16,000 --> 00:15:17,760 Speaker 1: we saw, you know, there was a meaningful you know, 280 00:15:18,280 --> 00:15:20,360 Speaker 1: you know, a number of percentage of points software there. 281 00:15:20,400 --> 00:15:23,280 Speaker 1: We originally were expecting the PC industry to be up 282 00:15:23,320 --> 00:15:26,080 Speaker 1: a couple of points this year. Now it's sort of flatish, 283 00:15:26,160 --> 00:15:29,120 Speaker 1: maybe down one point, so you know, a meaningful swing. 284 00:15:29,440 --> 00:15:32,560 Speaker 1: But on the business side, the enterprise and commercial side, 285 00:15:32,800 --> 00:15:36,440 Speaker 1: no change, right continuing to have real strength, and those 286 00:15:37,280 --> 00:15:39,480 Speaker 1: areas of the market. You know, I think with you know, 287 00:15:39,560 --> 00:15:45,320 Speaker 1: inflation concerns, tightening a monetary policy, these continuing supply chain challenges, Yeah, 288 00:15:45,320 --> 00:15:46,960 Speaker 1: things are probably gonna be a little bit choppy for 289 00:15:47,000 --> 00:15:50,840 Speaker 1: a couple of quarters. You're also were looking reviewing where 290 00:15:50,920 --> 00:15:54,120 Speaker 1: you produced your chips and facts. You're making Europe as 291 00:15:54,120 --> 00:15:57,600 Speaker 1: well as the US a priority, and perhaps that message 292 00:15:57,640 --> 00:16:01,240 Speaker 1: is resonating even more given what we're seeing in China. Um, 293 00:16:02,080 --> 00:16:04,960 Speaker 1: how is that coming along? Well, we are all in 294 00:16:05,360 --> 00:16:09,800 Speaker 1: on the rebuilding on what we've called the geographically balanced, 295 00:16:09,920 --> 00:16:14,280 Speaker 1: resilient supply chain where you know, this industry was in 296 00:16:14,400 --> 00:16:19,280 Speaker 1: US and Europe thirty years ago. Now it's manufactured in Asia. 297 00:16:19,960 --> 00:16:22,400 Speaker 1: What happened? You know? And it was never as I 298 00:16:22,480 --> 00:16:24,680 Speaker 1: you know, I was in Washington last week, and you know, 299 00:16:24,760 --> 00:16:28,120 Speaker 1: I joked to some of the congressional leaders. We never 300 00:16:28,240 --> 00:16:32,160 Speaker 1: voted to get rid of this industry, but those countries 301 00:16:32,360 --> 00:16:35,280 Speaker 1: voted to get this industry, you know, and they put 302 00:16:35,320 --> 00:16:38,640 Speaker 1: strong packages in place to attract this industry there. And 303 00:16:38,680 --> 00:16:41,040 Speaker 1: now we see that, oh, you know, we are way 304 00:16:41,080 --> 00:16:44,200 Speaker 1: too dependent on too few places in the world, you know, 305 00:16:44,240 --> 00:16:47,520 Speaker 1: And has Linda what aspect of your life is not 306 00:16:47,640 --> 00:16:51,520 Speaker 1: becoming more digital? Everything is becoming digital, right. You know, 307 00:16:51,600 --> 00:16:55,080 Speaker 1: my consumer my healthcare, my trade, transportation, you know how 308 00:16:55,120 --> 00:16:59,000 Speaker 1: I work, how I live, and everything digital runs on semiconductors. 309 00:16:59,280 --> 00:17:01,840 Speaker 1: As I say, you know where the oil reserves are 310 00:17:02,240 --> 00:17:06,479 Speaker 1: defined geopolitics for the last five decades. Where the fabs 311 00:17:06,520 --> 00:17:09,600 Speaker 1: are is more important for the next several decades. Let's 312 00:17:09,600 --> 00:17:11,919 Speaker 1: build them where we want them and do it in 313 00:17:11,960 --> 00:17:14,480 Speaker 1: a way that we have more resilience to the supply chain. 314 00:17:14,720 --> 00:17:17,080 Speaker 1: It is all great that you want to make the 315 00:17:17,200 --> 00:17:20,080 Speaker 1: US and Europe a priority, but it's also about scaling 316 00:17:20,119 --> 00:17:23,680 Speaker 1: and scaling quickly. How soon can you get there? Well, 317 00:17:23,720 --> 00:17:26,719 Speaker 1: you know we've announced the Ohio side expansions in Arizona. 318 00:17:26,840 --> 00:17:30,560 Speaker 1: In Europe, we announced our expansion and Germany, new research 319 00:17:30,880 --> 00:17:36,000 Speaker 1: in France, expansions continuing in Ireland. And what we're really 320 00:17:36,040 --> 00:17:40,119 Speaker 1: now anxious to see is that the US and the 321 00:17:40,240 --> 00:17:43,480 Speaker 1: EU Chips Act get completed that allows us to make 322 00:17:43,520 --> 00:17:47,680 Speaker 1: those good economic investments, because part of the challenges is that, 323 00:17:47,880 --> 00:17:50,440 Speaker 1: you know, we're competing now with countries that have very 324 00:17:50,520 --> 00:17:54,439 Speaker 1: actively incented those investments in Asia, and these investments they 325 00:17:54,440 --> 00:17:57,760 Speaker 1: have to be competitive worldwide or I can't compete for 326 00:17:57,800 --> 00:18:00,320 Speaker 1: the worldwide market. So, and that's what we're looking for 327 00:18:00,800 --> 00:18:04,000 Speaker 1: the EU leaders as well as the US congressional leaders, 328 00:18:04,040 --> 00:18:06,720 Speaker 1: get these things done so we can go faster. Just 329 00:18:06,880 --> 00:18:10,919 Speaker 1: for our radio listeners, we're speaking to about pad galcinga 330 00:18:11,040 --> 00:18:15,160 Speaker 1: Intel CEO here in Davos. I mean, we talked about 331 00:18:15,200 --> 00:18:17,879 Speaker 1: how we want to ramp up that production in the 332 00:18:17,960 --> 00:18:21,320 Speaker 1: US and Europe. But what kind of government support are 333 00:18:21,359 --> 00:18:24,600 Speaker 1: you seeing are you getting and is it enough? Well, 334 00:18:24,640 --> 00:18:27,520 Speaker 1: you know, the US Chips Act fifty two billion dollars, 335 00:18:27,600 --> 00:18:31,720 Speaker 1: the European Chips Act forty five billion euros. And as 336 00:18:31,760 --> 00:18:34,400 Speaker 1: we've looked at those programs and we've helped to shape them, 337 00:18:34,640 --> 00:18:36,920 Speaker 1: they make us competitive in the world. We feel very 338 00:18:36,960 --> 00:18:40,440 Speaker 1: good that these are very good steps forward and it's 339 00:18:40,480 --> 00:18:43,199 Speaker 1: against what I call the moon shot. And by the 340 00:18:43,280 --> 00:18:45,439 Speaker 1: end of the decade, our objective is that we go 341 00:18:45,520 --> 00:18:51,639 Speaker 1: from eight percent Asia, US and Europe to fifty fifty right, 342 00:18:51,720 --> 00:18:56,199 Speaker 1: thirty US tent in Europe fifty percent in Asia. That 343 00:18:56,440 --> 00:18:58,720 Speaker 1: is the goal that we are driving these four and 344 00:18:58,760 --> 00:19:01,800 Speaker 1: we think these these are rate steps forward and if 345 00:19:01,840 --> 00:19:15,520 Speaker 1: they are being successful, we can drive towards that welcome 346 00:19:15,520 --> 00:19:17,760 Speaker 1: back to Bloomberg Technology and Emily changing in San Francisco, 347 00:19:17,760 --> 00:19:21,360 Speaker 1: want to get back to that breaking news out of Snap. 348 00:19:21,400 --> 00:19:25,199 Speaker 1: The company shares plummeting in late trading here in the 349 00:19:25,280 --> 00:19:27,359 Speaker 1: US after cutting its guidance for the current quarter. Are 350 00:19:27,400 --> 00:19:29,640 Speaker 1: at ludlow here. Snap shares last I look down more 351 00:19:29,680 --> 00:19:34,399 Speaker 1: than two percent, saying the macro economic environment has deteriorated 352 00:19:34,480 --> 00:19:36,920 Speaker 1: much more quickly than even the anticy. And you you'll 353 00:19:36,920 --> 00:19:39,800 Speaker 1: remember in April when they reported first quarter arnings and 354 00:19:39,800 --> 00:19:41,920 Speaker 1: gave guidance for the current set of quarter, they said 355 00:19:41,960 --> 00:19:44,760 Speaker 1: that they started the year better than expected. Advertisers had 356 00:19:44,760 --> 00:19:47,200 Speaker 1: held up a lot of young people stuck with Snap 357 00:19:47,200 --> 00:19:49,960 Speaker 1: at a time where they weren't sticking with Facebook, that's 358 00:19:50,000 --> 00:19:53,280 Speaker 1: for sure. But things changed, particularly in the context of 359 00:19:53,280 --> 00:19:55,800 Speaker 1: the war in Ukraine, and what we're hearing from Snap 360 00:19:55,880 --> 00:19:58,440 Speaker 1: right now is that that's got even worse. And so 361 00:19:58,480 --> 00:20:01,320 Speaker 1: they're saying, our revenue in the second quarter are adjusted 362 00:20:01,320 --> 00:20:05,199 Speaker 1: earnings before interest tax, et cetera, will be at the 363 00:20:05,240 --> 00:20:07,000 Speaker 1: lower end of the scale which they gave in revenue, 364 00:20:07,000 --> 00:20:10,040 Speaker 1: they said, will the street have been looking for something more? 365 00:20:11,320 --> 00:20:13,520 Speaker 1: And this has also taken down other social media's rights. 366 00:20:13,600 --> 00:20:16,919 Speaker 1: Twitter Twitter doesn't need any more bad news, right, It 367 00:20:16,960 --> 00:20:19,200 Speaker 1: does not need any more complication, that's for sure. I 368 00:20:19,240 --> 00:20:21,959 Speaker 1: think you remember back in April when we were digesting 369 00:20:22,000 --> 00:20:24,879 Speaker 1: Metas earnings, we're thinking, oh, Snap was a bright spot. 370 00:20:25,520 --> 00:20:27,560 Speaker 1: We did see movement in other stocks depending on the 371 00:20:27,560 --> 00:20:30,480 Speaker 1: fate of others. Why because they all have tied fates 372 00:20:30,520 --> 00:20:33,119 Speaker 1: when it comes to advertising, and so this is worrying, 373 00:20:33,200 --> 00:20:37,880 Speaker 1: especially for Facebook, where Snapp has had growth, Facebook has 374 00:20:37,920 --> 00:20:40,800 Speaker 1: stagnated in its growth, and so if we're hearing this 375 00:20:40,840 --> 00:20:43,080 Speaker 1: message from Snap, I think there would be a concern 376 00:20:43,280 --> 00:20:45,399 Speaker 1: to some of the other social media platforms. Now, it 377 00:20:45,440 --> 00:20:48,800 Speaker 1: was interesting at the time when Snap tied the lower 378 00:20:48,960 --> 00:20:53,080 Speaker 1: numbers to the war in Ukraine, when it seems like 379 00:20:53,080 --> 00:20:55,240 Speaker 1: it would be more directly tied to coming out of 380 00:20:55,240 --> 00:20:58,200 Speaker 1: a pandemic and people just having less disposable time to 381 00:20:58,320 --> 00:21:01,520 Speaker 1: sit around and look at social media. So the thing 382 00:21:01,600 --> 00:21:04,919 Speaker 1: when you cover social media stocks and companies is we 383 00:21:05,000 --> 00:21:07,800 Speaker 1: forget how they make money, which is advertising revenue. You know, 384 00:21:07,840 --> 00:21:10,560 Speaker 1: we're super fixated on how many users they do or 385 00:21:10,600 --> 00:21:13,520 Speaker 1: don't have on a daily or monthly active user basis, 386 00:21:13,600 --> 00:21:16,680 Speaker 1: or how their growth is. But ultimately advertisers have other 387 00:21:16,720 --> 00:21:19,200 Speaker 1: reasons to pull money right. If they don't have confidence 388 00:21:19,240 --> 00:21:21,919 Speaker 1: in the global economy, they might hold off on spending 389 00:21:22,119 --> 00:21:24,720 Speaker 1: y because they're targeting people with those ads. They need 390 00:21:24,720 --> 00:21:27,320 Speaker 1: the consumer to be strong to actually buy products, and 391 00:21:27,520 --> 00:21:29,240 Speaker 1: that's certainly what we've seen in the war in Ukraine. 392 00:21:29,240 --> 00:21:31,760 Speaker 1: You see Alphabet, the parent company of Google and YouTube 393 00:21:31,920 --> 00:21:34,600 Speaker 1: hit by similar impact. It's the worry that those ads 394 00:21:34,640 --> 00:21:37,440 Speaker 1: aren't getting any eyeballs willing to spend all right at Lovell, 395 00:21:37,520 --> 00:21:40,920 Speaker 1: thank you for that update. We're watching so many tech 396 00:21:40,960 --> 00:21:43,080 Speaker 1: companies trying to navigate this sell off, and my next 397 00:21:43,080 --> 00:21:46,120 Speaker 1: guest is one of software's biggest success stories, but even 398 00:21:46,160 --> 00:21:49,000 Speaker 1: they haven't been immune to the recent volatility. I'm joined 399 00:21:49,040 --> 00:21:51,199 Speaker 1: now by Shantonoon and Ryan. He is the CEO and 400 00:21:51,320 --> 00:21:55,320 Speaker 1: chair of Adobe. Shantonoo, great to have you back with us. 401 00:21:55,359 --> 00:21:57,879 Speaker 1: It's been a while and the world has changed a lot. 402 00:21:58,160 --> 00:22:00,400 Speaker 1: I have to get due reaction to the later sell off. 403 00:22:00,440 --> 00:22:03,199 Speaker 1: Obviously we're talking about what's happening in Snap at this 404 00:22:03,320 --> 00:22:06,560 Speaker 1: very moment, but in big TEG more broadly as well. 405 00:22:06,600 --> 00:22:08,920 Speaker 1: What's your outlook on all of this, given that you've 406 00:22:08,960 --> 00:22:12,760 Speaker 1: been in this industry for a couple of decades. Well, 407 00:22:12,840 --> 00:22:14,760 Speaker 1: Lemily First, it's great to be back on your show. 408 00:22:14,800 --> 00:22:17,800 Speaker 1: As you said, it's been a couple of years, and 409 00:22:18,560 --> 00:22:22,600 Speaker 1: big picture for us, certainly the move towards digital, it's 410 00:22:22,640 --> 00:22:26,720 Speaker 1: no longer would be nice. It's an absolutely critical imperative 411 00:22:26,800 --> 00:22:29,960 Speaker 1: and so it's sort of a cliche, but the truth 412 00:22:30,080 --> 00:22:34,320 Speaker 1: is that digital is changing everything from entertainment to work 413 00:22:34,440 --> 00:22:37,240 Speaker 1: to play, and uh, I think we're at the center 414 00:22:37,280 --> 00:22:40,600 Speaker 1: of all those secular trends. So some of the companies 415 00:22:40,600 --> 00:22:44,600 Speaker 1: reporting I don't understand fully what their business cycles are, 416 00:22:44,640 --> 00:22:48,360 Speaker 1: but from our perspective, we continue to innovate and our 417 00:22:48,400 --> 00:22:54,080 Speaker 1: addressable market opportunity just continues to grow larger and larger. Now, 418 00:22:54,280 --> 00:22:57,280 Speaker 1: some folks are comparing what we're seeing right now to 419 00:22:57,560 --> 00:22:59,680 Speaker 1: the dot com bust, and I'd love to hear how 420 00:22:59,760 --> 00:23:02,720 Speaker 1: you are trying to put this into context. What is 421 00:23:02,800 --> 00:23:07,800 Speaker 1: your assessment of the macro economic environment and the circumstances 422 00:23:07,800 --> 00:23:10,840 Speaker 1: that are beyond your control, whether it is inflation or 423 00:23:11,040 --> 00:23:16,040 Speaker 1: rising rates or an ongoing war. Well, a couple of 424 00:23:16,080 --> 00:23:18,760 Speaker 1: thoughts come to mind, Emily. The first is that we 425 00:23:18,880 --> 00:23:23,800 Speaker 1: have been through this incredible, uh macro economic bull period 426 00:23:23,880 --> 00:23:27,159 Speaker 1: for the last few years, and so to some degree 427 00:23:27,240 --> 00:23:32,200 Speaker 1: a business cycle is absolutely critical, and that's happening also 428 00:23:32,240 --> 00:23:34,520 Speaker 1: as a result of the backdrop of what happened both 429 00:23:34,560 --> 00:23:38,680 Speaker 1: with the pandemic and more recently with the war in Ukraine. Uh. 430 00:23:38,760 --> 00:23:42,600 Speaker 1: I believe that what this will cause is a number 431 00:23:42,640 --> 00:23:45,199 Speaker 1: of companies that are single product companies that may not 432 00:23:45,320 --> 00:23:48,000 Speaker 1: have the depth and the breadth of the kinds of 433 00:23:48,000 --> 00:23:51,560 Speaker 1: offerings that the larger tech companies like Adobe have will 434 00:23:51,640 --> 00:23:53,520 Speaker 1: be shaken out. And so I think part of what 435 00:23:53,560 --> 00:23:57,000 Speaker 1: you're seeing is a normal period where when you go 436 00:23:57,080 --> 00:24:00,560 Speaker 1: through such a boom, everybody believes that you know it's 437 00:24:00,600 --> 00:24:03,199 Speaker 1: because of them, and then you realize, in a period 438 00:24:03,280 --> 00:24:06,119 Speaker 1: like this, who are going to be the true secular winners. 439 00:24:06,160 --> 00:24:07,840 Speaker 1: And I think Adobe is going to be part of it. 440 00:24:07,960 --> 00:24:10,640 Speaker 1: So I think the way we think about an opportunity 441 00:24:10,760 --> 00:24:14,119 Speaker 1: like this is, first, are we continuing to innovate on 442 00:24:14,160 --> 00:24:17,960 Speaker 1: behalf of our customers. Second, we have a tremendous balance sheet, 443 00:24:18,000 --> 00:24:22,639 Speaker 1: We have tremendous opportunity, So don't do anything that is 444 00:24:22,680 --> 00:24:25,600 Speaker 1: short term focused and continue to focus on making sure 445 00:24:25,960 --> 00:24:29,040 Speaker 1: that we drive the company long term. But I think 446 00:24:29,080 --> 00:24:31,920 Speaker 1: for the single product companies or the much smaller companies, 447 00:24:32,160 --> 00:24:34,360 Speaker 1: it's going to be a trying period because whether it's 448 00:24:34,359 --> 00:24:37,320 Speaker 1: the war in Ukraine or the potential dark clouds on 449 00:24:37,400 --> 00:24:41,240 Speaker 1: the macroeconomic environment, a lot of those companies haven't learned 450 00:24:41,240 --> 00:24:45,760 Speaker 1: how to deal with that. Now, speaking of innovation at Adobe, 451 00:24:45,840 --> 00:24:50,680 Speaker 1: you just launched Creative Cloud Express. Most folks know Adobe 452 00:24:50,760 --> 00:24:55,120 Speaker 1: for its signature Photoshop product, which is facing some increasing 453 00:24:55,160 --> 00:24:58,919 Speaker 1: competition from Canava light Ricks. How do you plan to 454 00:24:59,040 --> 00:25:02,400 Speaker 1: hold off some of that? You know, potential market share 455 00:25:02,400 --> 00:25:06,240 Speaker 1: gains to some of these competitors for this iconic product 456 00:25:06,280 --> 00:25:10,720 Speaker 1: in your portfolio. Emily, we created three categories, and when 457 00:25:10,720 --> 00:25:13,600 Speaker 1: you create three large categories the way we did, whether 458 00:25:13,640 --> 00:25:17,040 Speaker 1: it's creativity and uh, you know, our vision of enabling 459 00:25:17,119 --> 00:25:19,719 Speaker 1: anybody who has a story to tell to tell their story. 460 00:25:20,119 --> 00:25:22,560 Speaker 1: At the other end of the spectrum, whether it's enabling 461 00:25:22,800 --> 00:25:26,600 Speaker 1: every single business that's increasingly going to be digital to 462 00:25:26,680 --> 00:25:30,320 Speaker 1: engage with their customers digitally, and in the middle what 463 00:25:30,400 --> 00:25:34,919 Speaker 1: we do with document cloud and automating document productivity. Uh, 464 00:25:35,160 --> 00:25:38,520 Speaker 1: these are massive markets and we're going to win because 465 00:25:38,760 --> 00:25:41,840 Speaker 1: we created these markets. We have a vision for the market. 466 00:25:42,160 --> 00:25:44,879 Speaker 1: But the reality is that when you create these addressable 467 00:25:44,920 --> 00:25:47,919 Speaker 1: opportunities that are hundreds of billions of dollars you're going 468 00:25:47,960 --> 00:25:50,560 Speaker 1: to see other companies. So the way we focus on it, 469 00:25:50,880 --> 00:25:53,959 Speaker 1: specifically on the creative side, we are the largest company 470 00:25:54,000 --> 00:25:57,920 Speaker 1: in that space. We have an incredible portfolio, whether it's 471 00:25:57,960 --> 00:26:00,560 Speaker 1: Creative Cloud as you mentioned, and photoshop up, what we're 472 00:26:00,560 --> 00:26:04,040 Speaker 1: doing to enable the emerging metaverse, what we are doing 473 00:26:04,720 --> 00:26:08,919 Speaker 1: for people who are either communicators or consumers. So I 474 00:26:08,920 --> 00:26:11,040 Speaker 1: think it's the breadth of our offerings and it's the 475 00:26:11,080 --> 00:26:14,480 Speaker 1: depth of our technology and understanding of these trends that 476 00:26:14,520 --> 00:26:16,560 Speaker 1: will continue to make sure that Adobe is at the 477 00:26:16,560 --> 00:26:20,680 Speaker 1: forefront of all of these massive opportunities. You've got five 478 00:26:20,680 --> 00:26:22,959 Speaker 1: billion dollars in cash sitting on your balance sheet, are 479 00:26:22,960 --> 00:26:25,280 Speaker 1: you buying any acquisitions? We were just talking about a 480 00:26:25,280 --> 00:26:30,760 Speaker 1: big potential deal between Broadcam and VM where Adobe always 481 00:26:30,840 --> 00:26:35,160 Speaker 1: looks for really deep technology and great culture. I think, 482 00:26:35,160 --> 00:26:38,200 Speaker 1: to your point, what's happened in the market, there will 483 00:26:38,240 --> 00:26:40,719 Speaker 1: be a number of companies, so you know, we're always 484 00:26:40,760 --> 00:26:44,040 Speaker 1: judicious and we're always thoughtful in terms of the acquisitions 485 00:26:44,040 --> 00:26:46,520 Speaker 1: that we made. We just made a couple of acquisitions 486 00:26:46,520 --> 00:26:49,360 Speaker 1: that have actually turned out to be a phenomenal one 487 00:26:49,400 --> 00:26:52,240 Speaker 1: in the collaboration space Emily, where we bought this company 488 00:26:52,320 --> 00:26:56,400 Speaker 1: called frame Io, which enables anybody who's doing video collaboration 489 00:26:56,800 --> 00:26:59,719 Speaker 1: to collaborate in a way. We've also bought a company 490 00:26:59,760 --> 00:27:03,640 Speaker 1: called Workfront that allows anybody who's creating these marketing campaigns 491 00:27:04,119 --> 00:27:06,960 Speaker 1: to be far more efficient. So we're always looking. We're 492 00:27:07,240 --> 00:27:09,800 Speaker 1: very pleased with the portfolio of products that we have 493 00:27:09,880 --> 00:27:12,439 Speaker 1: in the depth, but we will continue to take a 494 00:27:12,480 --> 00:27:15,399 Speaker 1: look and our criteria continues to be making sure that 495 00:27:15,440 --> 00:27:18,560 Speaker 1: there's great technology, that there's a culture match, and financially 496 00:27:18,640 --> 00:27:22,040 Speaker 1: it is a good deal for our shareholders. All right, 497 00:27:22,240 --> 00:27:26,000 Speaker 1: Chanton Ryan, CEO of Adobe. Great to have you back 498 00:27:26,160 --> 00:27:29,159 Speaker 1: with us. Hopefully we can do it again before another 499 00:27:29,240 --> 00:27:33,560 Speaker 1: two years past. Thank you. Coming up once the crypto 500 00:27:33,680 --> 00:27:38,480 Speaker 1: Darling coin based now crashing hard. What is behind the 501 00:27:38,600 --> 00:27:41,720 Speaker 1: rise and fall of the largest US cryptocurrency in exchange 502 00:27:41,760 --> 00:27:44,520 Speaker 1: and what does it mean that's next? This is Bloomberg. 503 00:27:59,160 --> 00:28:01,000 Speaker 1: It's time now for our crypto report, and I want 504 00:28:01,000 --> 00:28:02,639 Speaker 1: to take a quick look at coin base, which has 505 00:28:02,640 --> 00:28:05,320 Speaker 1: gone from one of the stock market's biggest debuts to 506 00:28:05,480 --> 00:28:08,720 Speaker 1: one of its most spectacular crashes, all in a little 507 00:28:08,760 --> 00:28:10,720 Speaker 1: over a year. Coin Base seeing a bit of a 508 00:28:10,800 --> 00:28:13,919 Speaker 1: hike in Monday trading but share still down about sixty 509 00:28:14,000 --> 00:28:19,080 Speaker 1: six dollars apiece, way down from that three high back 510 00:28:19,119 --> 00:28:21,720 Speaker 1: in November. I want to get into this all and 511 00:28:21,840 --> 00:28:24,760 Speaker 1: more with Rebecca Kaida, director of marketing xpt o, which 512 00:28:24,880 --> 00:28:29,199 Speaker 1: offers global access to crypto finance through institutional trading, mining 513 00:28:29,680 --> 00:28:33,000 Speaker 1: and investing. Rebecca, what do you make of coin based 514 00:28:33,200 --> 00:28:37,359 Speaker 1: in particular as a microcosm of what's happening in crypto 515 00:28:37,440 --> 00:28:41,120 Speaker 1: more broadly? Well, absolutely, I mean I think that you know, 516 00:28:41,240 --> 00:28:43,360 Speaker 1: we have to remember that crypto is such, it's in 517 00:28:43,400 --> 00:28:46,400 Speaker 1: its pre teen phase um as a kind of financial 518 00:28:46,520 --> 00:28:50,560 Speaker 1: system uh and digital asset class. So it's important to 519 00:28:50,680 --> 00:28:55,280 Speaker 1: note that volatility is just a huge part of emerging technologies. 520 00:28:55,400 --> 00:28:58,520 Speaker 1: So what's interesting to note with coin based in particular 521 00:28:58,600 --> 00:29:01,200 Speaker 1: is their price to earnings are quite high. Uh and 522 00:29:01,320 --> 00:29:03,680 Speaker 1: as we know, as we've seen often with the stock market, 523 00:29:03,800 --> 00:29:06,600 Speaker 1: you can have great earnings, are great financials, and your 524 00:29:06,640 --> 00:29:09,360 Speaker 1: stock still plummets. And so what I really see here 525 00:29:09,520 --> 00:29:13,440 Speaker 1: is is negative impacts of the very notorious stable coin 526 00:29:13,840 --> 00:29:16,960 Speaker 1: you know, failure if you will, with Tera Luna recently 527 00:29:17,000 --> 00:29:19,160 Speaker 1: in the last couple of weeks. That's causing a lot 528 00:29:19,280 --> 00:29:22,800 Speaker 1: of panic, if you will, from retail investors, and then 529 00:29:22,880 --> 00:29:25,480 Speaker 1: looking at coin base as a as a kind of 530 00:29:26,000 --> 00:29:28,920 Speaker 1: definition of crypto in the market, it's is seeing some 531 00:29:29,040 --> 00:29:32,280 Speaker 1: of those um downturns. So how long would you say 532 00:29:32,360 --> 00:29:34,520 Speaker 1: this crypto winter is going to last. We talked to 533 00:29:34,640 --> 00:29:37,960 Speaker 1: a guest last week who thinks that don't expect bitcoin 534 00:29:38,120 --> 00:29:40,840 Speaker 1: to start trading back up for twelve to eighteen months. 535 00:29:42,520 --> 00:29:44,959 Speaker 1: I think it's possible, Emily. I mean, if I had 536 00:29:45,000 --> 00:29:48,120 Speaker 1: an oracle and I could tell you definitively, I would 537 00:29:48,240 --> 00:29:51,720 Speaker 1: let you know. But what happened equally in crypto is 538 00:29:51,800 --> 00:29:54,920 Speaker 1: that you know, the lows are are are getting higher 539 00:29:55,120 --> 00:29:58,280 Speaker 1: and they're getting shorter. So it's kind of the same 540 00:29:58,320 --> 00:30:00,360 Speaker 1: with the early stock market. Right. We go in these 541 00:30:00,440 --> 00:30:03,680 Speaker 1: different financial cycles, and you know, they last a lot 542 00:30:03,760 --> 00:30:05,320 Speaker 1: longer in the early stage and then they start to 543 00:30:05,360 --> 00:30:08,080 Speaker 1: get a lot shorter. But I'll bet my career that 544 00:30:08,280 --> 00:30:10,640 Speaker 1: Bitcoin and etherorum are not going to zero. And what 545 00:30:10,720 --> 00:30:14,080 Speaker 1: we're seeing right now is just the the impact of 546 00:30:14,200 --> 00:30:17,440 Speaker 1: some news that's been happening, and even the global markets. Right. 547 00:30:17,560 --> 00:30:20,280 Speaker 1: I think that as we've discussed, many guests on your 548 00:30:20,280 --> 00:30:23,800 Speaker 1: show discussed kind of different you know, macro trends at work. 549 00:30:23,960 --> 00:30:27,040 Speaker 1: The external events that are affecting everything. Crypto is not 550 00:30:27,200 --> 00:30:29,840 Speaker 1: the only one that's being impacted. You've seen a lot 551 00:30:29,880 --> 00:30:33,120 Speaker 1: of tech stocks fall, you know, sevent as well. I think, 552 00:30:33,160 --> 00:30:36,680 Speaker 1: in depending upon how you judge it, that some of 553 00:30:36,720 --> 00:30:39,320 Speaker 1: the tech stocks could be more volatile than crypto right now. 554 00:30:40,800 --> 00:30:45,880 Speaker 1: So how is this all impacting institutional appetite to expose 555 00:30:46,480 --> 00:30:50,200 Speaker 1: you know, themselves to more crypto assets. I mean, you know, 556 00:30:50,280 --> 00:30:53,160 Speaker 1: we were seeing that build up to this point, but 557 00:30:53,280 --> 00:30:57,960 Speaker 1: our institutional investors starting to get cold feet. Well you've 558 00:30:58,000 --> 00:31:02,240 Speaker 1: seen Goldman just invested in in Elwood Technologies, which does 559 00:31:02,320 --> 00:31:05,240 Speaker 1: actually help them, uh, you know, service their clients and 560 00:31:05,560 --> 00:31:09,960 Speaker 1: institutions that are looking to diversify into crypto. But what 561 00:31:10,120 --> 00:31:12,959 Speaker 1: typically happens, emily is that you have retail investors who 562 00:31:13,440 --> 00:31:17,320 Speaker 1: are maybe newer investors, and so they see downturns like 563 00:31:17,480 --> 00:31:20,120 Speaker 1: this and they panic sel and get frustrated, and then 564 00:31:20,200 --> 00:31:23,520 Speaker 1: this becomes a huge opportunity for institutions to get at 565 00:31:23,560 --> 00:31:26,520 Speaker 1: a more palatable price point. So, um, you know, something 566 00:31:26,560 --> 00:31:29,280 Speaker 1: that we've seen is some of the largest crypto wallets 567 00:31:29,360 --> 00:31:32,760 Speaker 1: have been actually amassing a lot more of top tier crypto. 568 00:31:32,960 --> 00:31:35,280 Speaker 1: So I would say that this is actually one of 569 00:31:35,320 --> 00:31:38,520 Speaker 1: the times that you know, UM, different funds of folks 570 00:31:38,600 --> 00:31:41,920 Speaker 1: that have been allocating you know, slowly kind of investing 571 00:31:42,040 --> 00:31:44,200 Speaker 1: over time. UM, this is a good point for them 572 00:31:44,240 --> 00:31:45,920 Speaker 1: to kind of get back in at a price that 573 00:31:46,120 --> 00:31:48,520 Speaker 1: that is a little bit more reasonable. Meantime, you have 574 00:31:48,640 --> 00:31:52,040 Speaker 1: venture capitalists looking at funding the next big crypto thing, 575 00:31:52,160 --> 00:31:53,760 Speaker 1: and I wonder when you look at a company like 576 00:31:53,920 --> 00:31:57,120 Speaker 1: coin base, is that a matter of you know, just 577 00:31:57,440 --> 00:32:00,720 Speaker 1: the market or is there also some measure of poor 578 00:32:00,800 --> 00:32:07,760 Speaker 1: execution there. With coin Bree specifically, I think that, you know, uh, 579 00:32:08,080 --> 00:32:11,760 Speaker 1: they've definitely done a lot of hires UM. So when 580 00:32:11,800 --> 00:32:13,960 Speaker 1: it comes to kind of business execution, I think that, 581 00:32:14,400 --> 00:32:16,800 Speaker 1: you know, it's it's easy for companies to get into 582 00:32:16,880 --> 00:32:20,240 Speaker 1: this this place of over hiring UM for lots of 583 00:32:20,360 --> 00:32:24,160 Speaker 1: positions that they can't necessarily derive a lot of value 584 00:32:24,200 --> 00:32:27,000 Speaker 1: from at the time. And we've seen that with crypto companies, 585 00:32:27,040 --> 00:32:30,080 Speaker 1: we've seen that with tech companies, and oftentimes that that 586 00:32:30,160 --> 00:32:33,720 Speaker 1: can be UM definitely a uh it takes the wind 587 00:32:33,760 --> 00:32:36,160 Speaker 1: out of their sales, if you will. So sometimes it 588 00:32:36,240 --> 00:32:39,280 Speaker 1: can be a little bit about poor business execution UM, 589 00:32:39,440 --> 00:32:43,560 Speaker 1: but that happens all the time. Unfortunately, Okay, Rebecca Kata 590 00:32:44,040 --> 00:32:47,280 Speaker 1: x bt O, thank you for joining us. Thank you 591 00:32:56,200 --> 00:32:59,520 Speaker 1: shaking up office WiFi. It's harder to set up than 592 00:32:59,560 --> 00:33:02,560 Speaker 1: you might think, and the founders of Meter, two brothers, 593 00:33:02,640 --> 00:33:06,400 Speaker 1: think it's the next big opportunity in big tech. Meter 594 00:33:06,560 --> 00:33:08,720 Speaker 1: is a startup that makes all of its own hardware 595 00:33:08,800 --> 00:33:11,360 Speaker 1: and software. To that end, it is backed by Silicon 596 00:33:11,440 --> 00:33:14,480 Speaker 1: Valley heavyweights from Sequoia and silver Lake to vm Ware 597 00:33:15,080 --> 00:33:17,479 Speaker 1: and Stripe. Here to talk about it all. Co founder 598 00:33:17,520 --> 00:33:20,440 Speaker 1: and CEO of Meter A Neil Varnasci and Neil, great 599 00:33:20,480 --> 00:33:22,640 Speaker 1: to have you back with us. So what are the 600 00:33:22,760 --> 00:33:26,960 Speaker 1: problems with office WiFi that we don't quite understand? Yeah, 601 00:33:27,120 --> 00:33:30,560 Speaker 1: every business runs on connectivity, right, most companies no longer 602 00:33:30,800 --> 00:33:33,680 Speaker 1: build their own data centers, but internet infrastructure continues to 603 00:33:33,760 --> 00:33:38,760 Speaker 1: be something that's complex, time consuming and really difficult. So well, 604 00:33:38,840 --> 00:33:41,080 Speaker 1: we think it should be like is similar to a 605 00:33:41,240 --> 00:33:43,680 Speaker 1: utility that when you go into a space, just like 606 00:33:43,760 --> 00:33:46,720 Speaker 1: you turn on electricity or water, it just works. And 607 00:33:46,840 --> 00:33:51,200 Speaker 1: what we're seeing is that every business increasingly is reliant 608 00:33:51,280 --> 00:33:54,479 Speaker 1: on software and technology, and frankly, we just don't think 609 00:33:54,520 --> 00:33:56,200 Speaker 1: that's going to slow down at all. So for all 610 00:33:56,240 --> 00:33:59,400 Speaker 1: of this to work, we really need great internet infrastructure, 611 00:33:59,520 --> 00:34:03,640 Speaker 1: a qualit us all of the different market segments. Now 612 00:34:03,720 --> 00:34:05,880 Speaker 1: you say you want internet service and infrastructure to be 613 00:34:06,040 --> 00:34:08,680 Speaker 1: a utility, what do you mean by that? And isn't 614 00:34:08,719 --> 00:34:13,080 Speaker 1: it already kind of a utility? So outside of spaces, 615 00:34:13,160 --> 00:34:15,760 Speaker 1: it truly is. But if you go inside of a space, 616 00:34:15,880 --> 00:34:18,239 Speaker 1: let's say you know you're setting up a workhouse, a 617 00:34:18,320 --> 00:34:23,440 Speaker 1: life sciences lab, retail, healthcare office space, what happens inside 618 00:34:23,520 --> 00:34:25,759 Speaker 1: it takes months. You have to deal with so many 619 00:34:25,800 --> 00:34:28,799 Speaker 1: different vendors, and you have to take on the complexity 620 00:34:28,840 --> 00:34:33,600 Speaker 1: of maintaining these really old systems. And so what we 621 00:34:33,840 --> 00:34:35,760 Speaker 1: do is make all of that kind of go away 622 00:34:35,960 --> 00:34:38,600 Speaker 1: so that customers can just go on with building their 623 00:34:38,640 --> 00:34:43,960 Speaker 1: own business. More broadly, is there a redistribution happening of 624 00:34:44,120 --> 00:34:47,879 Speaker 1: how we use WiFi? Given the shift to remote work? 625 00:34:47,920 --> 00:34:50,520 Speaker 1: More people working at home? I mean, aren't less people 626 00:34:50,640 --> 00:34:55,000 Speaker 1: working in the office today? Yeah? We we certainly service 627 00:34:55,040 --> 00:34:59,040 Speaker 1: customers and offices, but we service customers in warehouses, life 628 00:34:59,080 --> 00:35:01,480 Speaker 1: sciences lab else or so think about the past two 629 00:35:01,600 --> 00:35:05,360 Speaker 1: years where we've all ordered stuff on e commerce that 630 00:35:05,440 --> 00:35:08,759 Speaker 1: comes from a warehouse where it has robots and sensors 631 00:35:08,880 --> 00:35:12,759 Speaker 1: and computers and so everything runs on the Internet, So 632 00:35:12,960 --> 00:35:16,640 Speaker 1: there probably isn't a company, a product, or something that 633 00:35:16,800 --> 00:35:20,600 Speaker 1: we are customers of where they don't run on Internet. 634 00:35:20,760 --> 00:35:24,920 Speaker 1: Now working in WiFi. Now, you founded this company with 635 00:35:25,440 --> 00:35:29,560 Speaker 1: your brother, and I've heard some interesting comparisons to you 636 00:35:29,920 --> 00:35:33,440 Speaker 1: all and the Callison brothers, who of course co founded 637 00:35:33,520 --> 00:35:36,760 Speaker 1: Stripe and whose career I've enjoyed following over the last decade. 638 00:35:36,800 --> 00:35:39,320 Speaker 1: Talk to us a little bit about your story and 639 00:35:39,480 --> 00:35:43,160 Speaker 1: why you chose to take internet infrastructure on when it 640 00:35:43,239 --> 00:35:47,160 Speaker 1: could have been just about anything. Yeah, I think fundamentally 641 00:35:47,280 --> 00:35:49,799 Speaker 1: what we saw was this is a problem we wanted 642 00:35:49,840 --> 00:35:53,000 Speaker 1: to solve ourselves. But as we started working with a 643 00:35:53,120 --> 00:35:55,560 Speaker 1: lot of different companies and talked to companies that are 644 00:35:56,000 --> 00:36:00,360 Speaker 1: stalwart technology companies, we increasingly saw them ending a lot 645 00:36:00,400 --> 00:36:03,120 Speaker 1: of time in capital. But even if we take a 646 00:36:03,200 --> 00:36:06,680 Speaker 1: step back for a second, what's importantness to think about again, 647 00:36:06,840 --> 00:36:10,920 Speaker 1: We've heard about software reading the world and um technology 648 00:36:10,960 --> 00:36:14,279 Speaker 1: being everywhere. Internet infrastructure is kind of that underlying bed 649 00:36:14,480 --> 00:36:16,680 Speaker 1: that makes all the possible. So I'm sure your kids 650 00:36:16,719 --> 00:36:19,640 Speaker 1: watch YouTube or Twitch, or you know, we order something 651 00:36:19,800 --> 00:36:21,960 Speaker 1: or order a car to go somewhere. All of that 652 00:36:22,200 --> 00:36:26,160 Speaker 1: needs internet infrastructure. To function. So we think it's tremendously 653 00:36:26,239 --> 00:36:29,520 Speaker 1: important to get that right as technology grows over the 654 00:36:29,600 --> 00:36:32,800 Speaker 1: next decade. So let's talk about dollars. We know you 655 00:36:32,960 --> 00:36:36,520 Speaker 1: just raised a big new round of funding, but you know, 656 00:36:36,640 --> 00:36:39,320 Speaker 1: how big is the market size here? How many billions 657 00:36:39,360 --> 00:36:43,279 Speaker 1: of dollars do you think are up for grabs? Yeah, 658 00:36:43,320 --> 00:36:45,960 Speaker 1: so this is probably one of the largest markets there 659 00:36:46,080 --> 00:36:49,800 Speaker 1: is in technology. You know, there's been some noteworthy companies 660 00:36:49,880 --> 00:36:52,960 Speaker 1: for decades now, so you know, rather than kind of 661 00:36:53,000 --> 00:36:56,879 Speaker 1: thinking about just particular market segment, what's important to look 662 00:36:56,880 --> 00:37:00,160 Speaker 1: at is the billions of square fee that are all 663 00:37:00,239 --> 00:37:04,719 Speaker 1: of these segments that require internet infrastructure. So every single 664 00:37:04,800 --> 00:37:07,000 Speaker 1: type of space you see as you're driving by or 665 00:37:07,080 --> 00:37:10,080 Speaker 1: walking down main street, or when you think about a 666 00:37:10,160 --> 00:37:13,000 Speaker 1: company you work with or a customer of those are 667 00:37:13,040 --> 00:37:17,160 Speaker 1: all customers that are potential markets. Trusts. Is there a 668 00:37:17,280 --> 00:37:20,160 Speaker 1: number you'd put on it? Not not really. I think 669 00:37:20,200 --> 00:37:23,080 Speaker 1: it's in the tens of hundreds of billions, but I 670 00:37:23,160 --> 00:37:26,759 Speaker 1: think it just it's increasing. So what's again, you know 671 00:37:27,120 --> 00:37:30,040 Speaker 1: point earlier I was saying this is where currently it's 672 00:37:30,040 --> 00:37:32,040 Speaker 1: already one of the largest markets, but it is just 673 00:37:32,320 --> 00:37:35,880 Speaker 1: increasing every year as all of these other technology companies 674 00:37:35,920 --> 00:37:40,880 Speaker 1: become successful, and every company becomes a technology company. All right, 675 00:37:41,000 --> 00:37:44,160 Speaker 1: A Neil Varnasi, co founder and CEO of Meter, We'll 676 00:37:44,239 --> 00:37:48,040 Speaker 1: keep her eye on you and that big potential opportunity ahead. 677 00:37:48,080 --> 00:37:50,120 Speaker 1: Thank you. Before we go, I want to mention two 678 00:37:50,120 --> 00:37:53,000 Speaker 1: of those big tech stories that broke late in US 679 00:37:53,040 --> 00:37:56,240 Speaker 1: trading today, Snap shares falling after it cut its revenue 680 00:37:56,280 --> 00:37:59,280 Speaker 1: and profit forecasts below the low end of its guidance, 681 00:37:59,320 --> 00:38:01,880 Speaker 1: and part of that lean the company saying the macroeconomic 682 00:38:02,000 --> 00:38:07,080 Speaker 1: environment has deteriorated further and faster than they anticipated. We 683 00:38:07,160 --> 00:38:10,359 Speaker 1: also watched Zoom report its results, projecting sales and profit 684 00:38:10,440 --> 00:38:13,040 Speaker 1: for the current quarter of that topped estimates. And coming 685 00:38:13,120 --> 00:38:15,319 Speaker 1: up tomorrow right here on Bloomberg Technology, we'll be talking 686 00:38:15,360 --> 00:38:19,080 Speaker 1: about all these trends and earnings with Zoom CFO Kelly Steckelberg. 687 00:38:19,440 --> 00:38:23,480 Speaker 1: I'll also be speaking with Max Peterson, AWS vice president 688 00:38:23,600 --> 00:38:27,560 Speaker 1: for the Worldwide Public Sector about the future of the cloud. 689 00:38:27,640 --> 00:38:30,440 Speaker 1: That does it. For Bloomberg Technology, I'm Emily Chang in 690 00:38:30,480 --> 00:38:32,840 Speaker 1: San Francisco. This is Bloomberg