1 00:00:02,240 --> 00:00:05,560 Speaker 1: From the heart of where innovation, money and power collive 2 00:00:06,360 --> 00:00:10,879 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:10,960 --> 00:00:27,440 Speaker 1: Emily Jay. I'm Emily Check in San Francisco, and this 4 00:00:27,440 --> 00:00:29,800 Speaker 1: is Bloomberg Technology. Coming up in the next hour, a 5 00:00:29,880 --> 00:00:32,720 Speaker 1: bounce back for tech stocks. The Nasdaq one hundred seeing 6 00:00:32,760 --> 00:00:36,160 Speaker 1: a bump a day after a sell off, better raised 7 00:00:36,440 --> 00:00:39,320 Speaker 1: trillion spot Will it all be undone with new inflation 8 00:00:39,400 --> 00:00:44,360 Speaker 1: numbers come Wednesday? We'll discuss plus Elon Mosk says banning 9 00:00:44,400 --> 00:00:48,000 Speaker 1: former President Trump on Twitter was quote flat out stupid 10 00:00:48,360 --> 00:00:53,680 Speaker 1: and but he'll reverse it. And Tony Fidel's unorthodox advice 11 00:00:53,760 --> 00:00:57,440 Speaker 1: to founders in these times of market turmoil, so called 12 00:00:57,600 --> 00:01:01,200 Speaker 1: father of the iPod and co found of Nest, talks 13 00:01:01,240 --> 00:01:04,280 Speaker 1: about the most and least exciting inventions coming out of 14 00:01:04,319 --> 00:01:07,520 Speaker 1: Silicon Valley today. That's later this hour. I want to 15 00:01:07,520 --> 00:01:10,720 Speaker 1: dive into this ongoing volatility, especially in the tech sector, 16 00:01:10,760 --> 00:01:13,240 Speaker 1: where we've seen a big sell off since the start 17 00:01:13,280 --> 00:01:15,720 Speaker 1: of the year. I'm joined out by Ellen Hazen. She's 18 00:01:15,760 --> 00:01:20,200 Speaker 1: the chief market strategist at Putnam Investment. Ellen, thank you 19 00:01:20,240 --> 00:01:23,000 Speaker 1: so much for joining us. So, look, what do you 20 00:01:23,000 --> 00:01:26,080 Speaker 1: make of this sell off? Especially when it comes to tech. 21 00:01:26,120 --> 00:01:27,880 Speaker 1: How we hit bottom or is there more to come? 22 00:01:29,600 --> 00:01:33,120 Speaker 1: There's probably more to come. It makes sense that tech 23 00:01:33,160 --> 00:01:35,720 Speaker 1: stocks have pulled back so far because we saw tech 24 00:01:35,760 --> 00:01:38,720 Speaker 1: stocks do so well in the last three years, particularly 25 00:01:38,760 --> 00:01:41,440 Speaker 1: with the pull forward that we saw due to COVID 26 00:01:41,560 --> 00:01:43,959 Speaker 1: of all the stay at home names, but that was 27 00:01:44,040 --> 00:01:47,039 Speaker 1: also really exacerbated by the easy money policies that the 28 00:01:47,040 --> 00:01:50,200 Speaker 1: Federal Reserve is pursuing. And as the Fed begins to 29 00:01:50,240 --> 00:01:53,520 Speaker 1: pull back, a lot of tech is dominated, as you 30 00:01:53,560 --> 00:01:56,320 Speaker 1: know and as your viewers know, by those companies that 31 00:01:56,400 --> 00:01:58,960 Speaker 1: have very little cash flow now, and the market has 32 00:01:59,000 --> 00:02:01,960 Speaker 1: been betting on Ashlands pretty far out into the future. 33 00:02:02,560 --> 00:02:05,200 Speaker 1: We have looked at the tech sector as bifurcated between 34 00:02:05,240 --> 00:02:09,520 Speaker 1: those companies that have dominant market positions, a strong runway 35 00:02:09,520 --> 00:02:12,519 Speaker 1: for growth and cash flow now and those that were 36 00:02:12,560 --> 00:02:15,640 Speaker 1: really hopes and dreams. And I think that Ladder group 37 00:02:16,000 --> 00:02:18,320 Speaker 1: may not come back for a long time, if at all. 38 00:02:18,639 --> 00:02:20,799 Speaker 1: But the former group has come in quite a bit 39 00:02:20,840 --> 00:02:23,480 Speaker 1: as well, and we think those are where the opportunities are. 40 00:02:24,440 --> 00:02:29,399 Speaker 1: So inflation numbers coming out in twenty four hours, how 41 00:02:29,520 --> 00:02:33,360 Speaker 1: is that going to affect this broader story? Certainly if 42 00:02:33,400 --> 00:02:36,360 Speaker 1: inflation remains high, and we think it will probably peak 43 00:02:36,440 --> 00:02:38,799 Speaker 1: sometime in the second quarter. But if we see a 44 00:02:38,880 --> 00:02:41,639 Speaker 1: high inflation print tomorrow, that's very bad for those long 45 00:02:41,720 --> 00:02:45,040 Speaker 1: duration tech stocks because that will give the Federal Reserve 46 00:02:45,120 --> 00:02:48,160 Speaker 1: license to raise rates even faster. Real rates are going 47 00:02:48,200 --> 00:02:50,760 Speaker 1: to continue to increase, and that hurts those cash floads 48 00:02:50,760 --> 00:02:53,120 Speaker 1: that you're discounting for a lot of the far outgrows names. 49 00:02:54,040 --> 00:02:55,880 Speaker 1: So when you say there's more to come, just how 50 00:02:55,960 --> 00:03:01,160 Speaker 1: much more? How low can we go? Uh? It depends 51 00:03:01,160 --> 00:03:04,520 Speaker 1: on the company, of course, but we wouldn't be surprised 52 00:03:04,560 --> 00:03:06,760 Speaker 1: to see another five time percent down and a lot 53 00:03:06,800 --> 00:03:08,919 Speaker 1: of the larger names and some of the smaller names, 54 00:03:08,960 --> 00:03:12,600 Speaker 1: it's really hard to say where they could go, particularly 55 00:03:12,639 --> 00:03:15,360 Speaker 1: those that are that are less profitable. A lot of 56 00:03:15,400 --> 00:03:18,040 Speaker 1: the excess has been wrung out of the bigger names, though, 57 00:03:18,080 --> 00:03:20,160 Speaker 1: and so if you look at some of the largest 58 00:03:20,200 --> 00:03:23,120 Speaker 1: tech names and the outperformance that they had had going 59 00:03:23,240 --> 00:03:27,200 Speaker 1: into two, a lot of that performance has been given back, 60 00:03:27,240 --> 00:03:29,600 Speaker 1: and so we think the larger names are are pretty 61 00:03:29,600 --> 00:03:33,200 Speaker 1: close to bottoming out here. Um. Of course, one can 62 00:03:33,240 --> 00:03:36,160 Speaker 1: never say never, and it's hard to predict day to day, 63 00:03:36,200 --> 00:03:39,120 Speaker 1: but they're getting to be pretty attractively valued um, but 64 00:03:39,240 --> 00:03:41,840 Speaker 1: some of the smaller and less profitable companies it could 65 00:03:41,840 --> 00:03:46,320 Speaker 1: be a while. So let's talk about big tech earnings. 66 00:03:46,360 --> 00:03:49,440 Speaker 1: We've seen a number of companies miss their marks this quarter. 67 00:03:49,600 --> 00:03:52,480 Speaker 1: Do you see that happening again in the current quarter 68 00:03:52,640 --> 00:03:56,520 Speaker 1: and the next quarter? A lot of that is going 69 00:03:56,600 --> 00:04:00,560 Speaker 1: to depend on what happens with underlying economic growth right now. 70 00:04:00,800 --> 00:04:03,520 Speaker 1: It does come back to the consumer and corporate strength. 71 00:04:03,880 --> 00:04:06,680 Speaker 1: The consumer remains strong. We still have that two and 72 00:04:06,720 --> 00:04:09,520 Speaker 1: a half trillion of excess savings on the consumer balance sheets. 73 00:04:10,280 --> 00:04:13,400 Speaker 1: Consumers have pretty good wage growth, and they all have 74 00:04:13,600 --> 00:04:16,320 Speaker 1: jobs for the most part. We saw the unemployment come 75 00:04:16,360 --> 00:04:18,440 Speaker 1: in last week at a very low three point six. 76 00:04:19,080 --> 00:04:21,679 Speaker 1: So as long as the consumer keeps spending and therefore 77 00:04:21,720 --> 00:04:25,520 Speaker 1: the economy keeps going, then we think that they're the 78 00:04:25,560 --> 00:04:28,400 Speaker 1: company's top lines will be okay. I think the biggest 79 00:04:28,480 --> 00:04:31,680 Speaker 1: question is whether or not that slows down materially from here. 80 00:04:32,240 --> 00:04:34,560 Speaker 1: And then the second question is whether or not wage 81 00:04:34,560 --> 00:04:37,000 Speaker 1: pressures are going to catch up and cause big tech 82 00:04:37,080 --> 00:04:40,039 Speaker 1: to have to pay more to their workers. If we 83 00:04:40,160 --> 00:04:44,200 Speaker 1: see inflation take hold in wages, not just in tech 84 00:04:44,240 --> 00:04:46,920 Speaker 1: workers but across the board, then that can really slow 85 00:04:46,960 --> 00:04:49,440 Speaker 1: the economy down and keep inflation high and cause the 86 00:04:49,480 --> 00:04:52,640 Speaker 1: FED to move even faster and harder than they were before. 87 00:04:53,440 --> 00:04:55,800 Speaker 1: But if the FED is able to engineer a soft landing, 88 00:04:55,839 --> 00:04:58,039 Speaker 1: then we think the large cap tech companies are going 89 00:04:58,080 --> 00:05:01,120 Speaker 1: to remain more or less okay. But it does depend 90 00:05:01,240 --> 00:05:03,799 Speaker 1: on the degree of pull forward that has been seen, 91 00:05:03,800 --> 00:05:07,760 Speaker 1: and that's very much accompanied by company evaluation. Now, there's 92 00:05:07,760 --> 00:05:09,400 Speaker 1: certainly a lot of factors that are just out of 93 00:05:09,400 --> 00:05:14,359 Speaker 1: their control, including China's COVID policy, you know, continuing to 94 00:05:14,440 --> 00:05:17,560 Speaker 1: keep Shanghai on lockdown. We know the Tesla factory, for example, 95 00:05:17,600 --> 00:05:20,960 Speaker 1: has experienced a lot of disruptions. We know Apple has 96 00:05:21,000 --> 00:05:24,160 Speaker 1: some big warnings about supply constraints and the impact it 97 00:05:24,200 --> 00:05:26,799 Speaker 1: will have on their quarter to the tune of billions 98 00:05:26,839 --> 00:05:29,400 Speaker 1: of dollars. How much of an impact do you think 99 00:05:29,839 --> 00:05:35,000 Speaker 1: China's COVID policy specifically is having on this broader slowdown. 100 00:05:36,480 --> 00:05:39,880 Speaker 1: It's clearly a factor, and particularly on the hardware side, 101 00:05:39,920 --> 00:05:42,440 Speaker 1: as you point out, because so much hardware, including some 102 00:05:42,600 --> 00:05:47,320 Speaker 1: means but other um other assemblies take place in China, 103 00:05:47,440 --> 00:05:50,839 Speaker 1: and so the zero COVID policy is definitely having an effect. 104 00:05:51,320 --> 00:05:54,000 Speaker 1: I think the question becomes not what effect is it 105 00:05:54,040 --> 00:05:56,719 Speaker 1: having today, but what effect is it going to have 106 00:05:56,880 --> 00:05:59,240 Speaker 1: in one or two more quarters? And does the government 107 00:05:59,400 --> 00:06:04,240 Speaker 1: have the wherewithal and the plan to continue with this 108 00:06:04,279 --> 00:06:08,320 Speaker 1: type of very very sharp lockdown for an indefinite period 109 00:06:08,320 --> 00:06:11,479 Speaker 1: of time. If they ease up on it, either because 110 00:06:11,520 --> 00:06:14,839 Speaker 1: the case numbers get better or it becomes untenable, then 111 00:06:14,920 --> 00:06:17,880 Speaker 1: we can see a lot of those tech products begin 112 00:06:17,960 --> 00:06:20,280 Speaker 1: to flow again. So a lot of it's going to 113 00:06:20,400 --> 00:06:23,400 Speaker 1: depend on the on the policy itself. But if the 114 00:06:23,440 --> 00:06:26,960 Speaker 1: case numbers get better and or the COVID zero COVID 115 00:06:27,000 --> 00:06:33,000 Speaker 1: policy is effective at keeping it um contained in certain areas, 116 00:06:33,800 --> 00:06:36,119 Speaker 1: I do think there will be a relief rally as 117 00:06:36,320 --> 00:06:38,960 Speaker 1: we see a lot of the exports begin to come 118 00:06:39,000 --> 00:06:42,680 Speaker 1: back online. Well, and of course we need to see 119 00:06:42,680 --> 00:06:45,440 Speaker 1: how committed China is to that zero COVID policy. Look, 120 00:06:45,440 --> 00:06:48,200 Speaker 1: what's your advice for tech investors right now? Are there 121 00:06:48,240 --> 00:06:51,520 Speaker 1: any safe havens where should they be putting their money? 122 00:06:52,160 --> 00:06:55,800 Speaker 1: Have a shopping list and come up with the names 123 00:06:55,800 --> 00:06:57,960 Speaker 1: that you want for us, that's the large cap tech 124 00:06:57,960 --> 00:07:01,200 Speaker 1: companies with big motes like Microsoft, like Google, like Apple. 125 00:07:01,640 --> 00:07:05,159 Speaker 1: Stay away from companies whose competitive modes are being eroded 126 00:07:05,200 --> 00:07:09,960 Speaker 1: either by regulatory scrutiny or by consumer preferences or COVID 127 00:07:10,080 --> 00:07:13,200 Speaker 1: and stay at home ending and find companies that are 128 00:07:13,200 --> 00:07:16,560 Speaker 1: actually generating cash flow. Now. I do not think that 129 00:07:16,640 --> 00:07:19,280 Speaker 1: the very low cash flow or negative cash flow companies 130 00:07:19,320 --> 00:07:21,840 Speaker 1: are likely to come back, and I think that could 131 00:07:22,160 --> 00:07:27,040 Speaker 1: really um be a losing trade going forward to try 132 00:07:27,040 --> 00:07:29,520 Speaker 1: to buy some of those, even though they're down six 133 00:07:29,800 --> 00:07:33,440 Speaker 1: seventy eight plus percent, It's probably not a good idea 134 00:07:33,480 --> 00:07:35,720 Speaker 1: to chase those because unless the FED comes back with 135 00:07:35,920 --> 00:07:38,120 Speaker 1: very easy money, I don't think we're going to see 136 00:07:38,120 --> 00:07:42,679 Speaker 1: those valuations again. All Right, have a shopping list. Advice 137 00:07:42,720 --> 00:07:45,560 Speaker 1: from Ellen Hays and chief market strategist at fl Platinum. 138 00:07:45,560 --> 00:07:49,160 Speaker 1: Thank you Ellen for joining us coming up. Elon Musk 139 00:07:49,200 --> 00:07:52,800 Speaker 1: says he'll reverse the permanent ban of former President Trump 140 00:07:52,920 --> 00:07:55,840 Speaker 1: if his deal to buy Twitter goes through. My Musk 141 00:07:56,000 --> 00:07:58,720 Speaker 1: is still casting doubt on his ability to buy the 142 00:07:58,760 --> 00:08:04,480 Speaker 1: platform next Mrs Bloomberg, I would reverse the perma ban, obviously, 143 00:08:04,520 --> 00:08:06,360 Speaker 1: I'm not. I don't own Twitter yet, so this is 144 00:08:06,400 --> 00:08:08,480 Speaker 1: not like a thing that will definitely happen, because what 145 00:08:08,520 --> 00:08:21,480 Speaker 1: if I don't own Twitter. He has publicly stated that 146 00:08:21,720 --> 00:08:25,080 Speaker 1: he will not be coming back to Twitter um and 147 00:08:25,240 --> 00:08:28,840 Speaker 1: that he will only be on truth social And this 148 00:08:28,920 --> 00:08:30,920 Speaker 1: is the point that I'm trying to make, which is 149 00:08:30,960 --> 00:08:35,800 Speaker 1: perhaps not getting across, is that is that fanning Trump 150 00:08:35,840 --> 00:08:40,360 Speaker 1: from Twitter didn't end Trump voice. It will amplify it 151 00:08:40,960 --> 00:08:43,800 Speaker 1: among the rights. And this is why it is morally 152 00:08:43,880 --> 00:08:48,280 Speaker 1: wrung and flat out stupid. Elon Musk, they're speaking at 153 00:08:48,280 --> 00:08:50,960 Speaker 1: the Financial Times the Future of the Car summit his 154 00:08:51,040 --> 00:08:53,960 Speaker 1: thoughts on the permanent ban a former President Trump on 155 00:08:53,960 --> 00:08:58,920 Speaker 1: Twitter following the deadly attack at the US Capitol on January, 156 00:08:59,160 --> 00:09:02,960 Speaker 1: Musk saying, reverse the ban if his four D four 157 00:09:03,000 --> 00:09:06,000 Speaker 1: billion dollar bid to buy Twitter goes through. For more, 158 00:09:06,000 --> 00:09:08,000 Speaker 1: I'm joined by our ad Ludlow, who helps cover Musk 159 00:09:08,080 --> 00:09:10,600 Speaker 1: for US, as well as Bloomberg Sarah Fryer, who covers 160 00:09:10,640 --> 00:09:13,760 Speaker 1: Big tex So. Not only did he say he reversed 161 00:09:13,760 --> 00:09:17,120 Speaker 1: the ban on former President Trump, he repeatedly said if 162 00:09:17,840 --> 00:09:20,880 Speaker 1: if the deal goes through, casting some doubt on it 163 00:09:20,960 --> 00:09:23,200 Speaker 1: going through at all. What did you make of that? Yeah, 164 00:09:23,240 --> 00:09:26,000 Speaker 1: I mean he was couching or caveating that the deal 165 00:09:26,040 --> 00:09:28,680 Speaker 1: is not yet closed, but he did reference at the 166 00:09:28,800 --> 00:09:31,320 Speaker 1: idea that it might not go through. You know, investors 167 00:09:31,360 --> 00:09:35,800 Speaker 1: have speculated that he could walk away potentially, uh, you 168 00:09:35,840 --> 00:09:37,679 Speaker 1: know that there would be some kind of challenge, as 169 00:09:37,720 --> 00:09:39,960 Speaker 1: there has been a pension funders suit must to block it. 170 00:09:40,040 --> 00:09:43,560 Speaker 1: The FDC, according to sources, is investigating it. But also 171 00:09:43,600 --> 00:09:45,840 Speaker 1: mean it wasn't just about the ban reversing the band 172 00:09:45,880 --> 00:09:48,680 Speaker 1: for Trump. He basically said banning doesn't work, and he 173 00:09:48,760 --> 00:09:52,000 Speaker 1: cited Trump setting up Truth Social, his own social media 174 00:09:52,040 --> 00:09:54,880 Speaker 1: platform where his voice is essentially at Hans. It's a 175 00:09:54,960 --> 00:09:57,920 Speaker 1: very right leaning platform, and he kind of used that 176 00:09:58,000 --> 00:10:00,240 Speaker 1: as the basis of his argument that an out right 177 00:10:00,320 --> 00:10:03,040 Speaker 1: band full stop just doesn't work on the Twitter platform. 178 00:10:03,320 --> 00:10:07,280 Speaker 1: Musk confirming what he had hinted at before, saying that 179 00:10:07,360 --> 00:10:10,680 Speaker 1: we should be cautious. Twitter should be cautious about permanent bands. 180 00:10:10,720 --> 00:10:13,680 Speaker 1: That said Sarah. He has said he'd be okay censoring 181 00:10:13,760 --> 00:10:18,400 Speaker 1: some content and potentially banning some individuals. So aside from 182 00:10:18,800 --> 00:10:21,560 Speaker 1: the case of President Trump, what exactly would be different 183 00:10:21,679 --> 00:10:25,360 Speaker 1: when it comes to content moderation under Elon Musk, Well, 184 00:10:25,440 --> 00:10:28,000 Speaker 1: you know, it's it's unclear because he he says he's 185 00:10:28,040 --> 00:10:30,720 Speaker 1: a free speech absolutist, and then when it comes down 186 00:10:30,760 --> 00:10:32,840 Speaker 1: to it, when you sort of drill into the details, 187 00:10:32,840 --> 00:10:36,240 Speaker 1: in these conversations he's been having, he's totally open with 188 00:10:36,320 --> 00:10:39,120 Speaker 1: some content moderation. He says he wants to get rid 189 00:10:39,160 --> 00:10:40,920 Speaker 1: of the spam box, he wants to get rid of 190 00:10:40,960 --> 00:10:44,640 Speaker 1: the bitcoin spams that's happening on Twitter right now. There 191 00:10:44,679 --> 00:10:47,600 Speaker 1: are some kinds of content that he's okay with with 192 00:10:47,640 --> 00:10:50,719 Speaker 1: getting rid of. And he was speaking with the European 193 00:10:50,840 --> 00:10:55,800 Speaker 1: Union Commissioner yesterday um about this very this very problem, 194 00:10:55,960 --> 00:10:58,600 Speaker 1: and we expected there to be a lot of clashing 195 00:10:58,600 --> 00:11:03,000 Speaker 1: there because the E one to have really strict content policy. 196 00:11:03,160 --> 00:11:05,880 Speaker 1: Elon must said, Hey, we have no disagreement here. I'm 197 00:11:05,920 --> 00:11:09,040 Speaker 1: totally on board with other things that you're saying, which 198 00:11:09,160 --> 00:11:12,120 Speaker 1: was very surprising to me. So it's unclear when he 199 00:11:12,160 --> 00:11:15,319 Speaker 1: comes in what will be different besides perhaps a little 200 00:11:15,320 --> 00:11:19,319 Speaker 1: bit more friendliness for the right. And explain Musk's line 201 00:11:19,320 --> 00:11:23,480 Speaker 1: of argument that by removing Trump from Twitter, you amplify 202 00:11:24,040 --> 00:11:26,719 Speaker 1: his voice elsewhere. Yeah, you know, it's it is a 203 00:11:26,720 --> 00:11:29,360 Speaker 1: bit of a head scratcher. But essentially he put it 204 00:11:29,360 --> 00:11:33,439 Speaker 1: in very simple terms that it was foolish to remove 205 00:11:33,480 --> 00:11:35,559 Speaker 1: Trump from the platform. He used a range of words. 206 00:11:35,640 --> 00:11:39,199 Speaker 1: Trump set up his own social media platform, truth Social 207 00:11:39,280 --> 00:11:42,960 Speaker 1: Truth social does not have the potential at least have 208 00:11:43,000 --> 00:11:46,120 Speaker 1: as broader debating conversation as Twitter does. It Must's opinion, 209 00:11:46,480 --> 00:11:50,560 Speaker 1: it is very right leaning. It amplifies Trump's voice with 210 00:11:50,679 --> 00:11:55,480 Speaker 1: that section of American society in American politics, not stifles it. 211 00:11:55,800 --> 00:11:58,800 Speaker 1: And he did display some frustration right because the moderator 212 00:11:58,880 --> 00:12:01,640 Speaker 1: of that FT conference said, Okay, what's your position on 213 00:12:01,720 --> 00:12:04,280 Speaker 1: reversing Trump's ban? Would you do it? Would you not 214 00:12:04,360 --> 00:12:07,040 Speaker 1: do it? His point is it's it's academic to a 215 00:12:07,040 --> 00:12:10,160 Speaker 1: certain point that had we never done that, he may 216 00:12:10,200 --> 00:12:12,640 Speaker 1: never have set up true social and that there would 217 00:12:12,679 --> 00:12:16,280 Speaker 1: be a more moderated or at least bipartisan conversation on 218 00:12:16,400 --> 00:12:18,880 Speaker 1: what Mask describes as the public town square. Right, that's 219 00:12:18,880 --> 00:12:21,840 Speaker 1: what he wants Twitter to be. Now. Musk also go 220 00:12:22,040 --> 00:12:25,360 Speaker 1: so far as to invoke Jack dorsey support, saying Jack 221 00:12:25,400 --> 00:12:30,160 Speaker 1: Dorsey also supports this ban, uh, this unbanning of President Trump. 222 00:12:30,160 --> 00:12:32,920 Speaker 1: Take a listen to what he had to say. My 223 00:12:33,000 --> 00:12:35,520 Speaker 1: opinion and Jack Dorsey, I want to be clear, shares 224 00:12:35,559 --> 00:12:40,520 Speaker 1: this opinion is that we should not have perma bands. Um. Now, now, 225 00:12:40,600 --> 00:12:43,320 Speaker 1: that doesn't mean that somebody gets to say whatever they 226 00:12:43,320 --> 00:12:46,400 Speaker 1: wanted to say. If they say something that is illegal 227 00:12:46,760 --> 00:12:53,000 Speaker 1: or um otherwise uh, just you know, just destructive as 228 00:12:53,040 --> 00:12:55,200 Speaker 1: the world. Then then that there should be perhaps a 229 00:12:55,280 --> 00:13:00,600 Speaker 1: time out, a temporary suspension, or that particular tweet should 230 00:13:00,640 --> 00:13:07,079 Speaker 1: be uh made invisible or or have very limited attraction. 231 00:13:08,240 --> 00:13:11,199 Speaker 1: Now to be clear, former President Trump was banned from 232 00:13:11,200 --> 00:13:15,959 Speaker 1: Twitter under Jack Dorsey's leadership. He responded to a tweet 233 00:13:16,000 --> 00:13:18,920 Speaker 1: to that effect, uh, saying that he does agree there 234 00:13:18,960 --> 00:13:22,920 Speaker 1: shouldn't be permanent bands. There are exceptions, but generally permanent 235 00:13:22,960 --> 00:13:27,480 Speaker 1: bands are a failure of ours and don't work. Sarah, 236 00:13:27,559 --> 00:13:32,400 Speaker 1: what do you make of Elon Musk invoking Jack Dorsey here? Um? 237 00:13:32,440 --> 00:13:34,440 Speaker 1: And if Elon Musk is going to take over Twitter, 238 00:13:34,760 --> 00:13:37,720 Speaker 1: is Jack Dorsey also going to be in the driver's 239 00:13:37,760 --> 00:13:40,800 Speaker 1: seat or or the co pilot. Well, we know that 240 00:13:40,840 --> 00:13:43,199 Speaker 1: they're friends. They have a friendship that goes way back. 241 00:13:43,559 --> 00:13:47,040 Speaker 1: What's strange though about what Jack Dorsey has been saying 242 00:13:47,120 --> 00:13:50,800 Speaker 1: is who was the CEO of Twitter when Trump was banned? 243 00:13:51,040 --> 00:13:54,040 Speaker 1: Who was the CEO of Twitter when they were making 244 00:13:54,080 --> 00:13:58,000 Speaker 1: all these policies about who they needed to to moderate 245 00:13:58,040 --> 00:14:01,000 Speaker 1: on the platform? It was Jack And and he's he's 246 00:14:01,080 --> 00:14:03,640 Speaker 1: made some strange comments like this lately where he he 247 00:14:03,720 --> 00:14:07,239 Speaker 1: talks about how Twitter's board has always been, the dysfunction 248 00:14:07,280 --> 00:14:09,080 Speaker 1: of Twitter, the fact that it's a public company and 249 00:14:09,080 --> 00:14:12,040 Speaker 1: beholds into the markets. These are all big problems. Um, 250 00:14:12,280 --> 00:14:15,040 Speaker 1: he was running the thing, so he could have changed 251 00:14:15,040 --> 00:14:17,719 Speaker 1: a lot of these things while he was in charge. UM. 252 00:14:18,160 --> 00:14:20,040 Speaker 1: I would love to hear more from Jack about why 253 00:14:20,080 --> 00:14:23,120 Speaker 1: he feels like that was impossible. But I do think 254 00:14:23,160 --> 00:14:26,120 Speaker 1: that he feels if Twitter is a private company that 255 00:14:26,200 --> 00:14:29,680 Speaker 1: they might have more latitude to make certain changes that 256 00:14:29,720 --> 00:14:33,400 Speaker 1: he didn't feel comfortable making as a public business, and 257 00:14:33,520 --> 00:14:37,000 Speaker 1: Elon Musk could make that happen through his deal. Now. 258 00:14:37,040 --> 00:14:39,440 Speaker 1: Elon Musk has said he would be Twitter CEO at 259 00:14:39,480 --> 00:14:42,760 Speaker 1: least for a time after this takeover. But is it, 260 00:14:43,440 --> 00:14:46,640 Speaker 1: you know, at all possible that Jack Dorsey comes back 261 00:14:46,680 --> 00:14:50,440 Speaker 1: as as CEO as well. Sure, I I think that's 262 00:14:50,440 --> 00:14:53,480 Speaker 1: definitely possible. And then's it's one of the top names 263 00:14:53,480 --> 00:14:57,000 Speaker 1: that have been speculated. You know, Elon Musk running it 264 00:14:57,080 --> 00:15:00,480 Speaker 1: for a few months, um is maybe something to say 265 00:15:00,520 --> 00:15:04,880 Speaker 1: to try to get investors on board with the plan. 266 00:15:05,040 --> 00:15:09,200 Speaker 1: He has a bit of a mightas touch when it 267 00:15:09,240 --> 00:15:11,320 Speaker 1: comes to the things that he says are going to 268 00:15:11,320 --> 00:15:15,120 Speaker 1: work out. He certainly has some lofty plans that he's 269 00:15:15,360 --> 00:15:19,280 Speaker 1: put forth for Twitter. Um, but he has this cult 270 00:15:19,320 --> 00:15:21,960 Speaker 1: of personality that when he takes charge of something, people 271 00:15:22,440 --> 00:15:25,600 Speaker 1: really do listen and come on board. Maybe he could 272 00:15:25,600 --> 00:15:28,400 Speaker 1: convince Jack to come back to run Twitter, or or 273 00:15:28,440 --> 00:15:32,160 Speaker 1: maybe he has somebody else in mind. And what do 274 00:15:32,200 --> 00:15:36,000 Speaker 1: you make of that thought, given how Elon Musk runs 275 00:15:36,040 --> 00:15:38,400 Speaker 1: his other companies. Yeah, Look, he's not afraid to do 276 00:15:38,440 --> 00:15:41,480 Speaker 1: talent sharing. You look about the sort of software AI 277 00:15:41,560 --> 00:15:44,280 Speaker 1: talent sharing materials, talent sharing that goes on between Tester 278 00:15:44,400 --> 00:15:47,840 Speaker 1: and SpaceX. He's tweeted and commented a lot that Tester 279 00:15:48,040 --> 00:15:51,560 Speaker 1: is principally a software company. He's talked about needing to 280 00:15:51,640 --> 00:15:55,440 Speaker 1: fix at Twitter the underlying technology right open source in 281 00:15:55,480 --> 00:15:58,560 Speaker 1: the algorithm. Also, he talks about Twitter's hardware, needing to 282 00:15:58,600 --> 00:16:02,680 Speaker 1: basically fix their computers to make the process better. Beyond that, 283 00:16:02,920 --> 00:16:06,000 Speaker 1: his suggestions are straightforward, right, Sarah's just talked about them 284 00:16:06,000 --> 00:16:09,800 Speaker 1: strip out the box. He accused Twitter of being slightly 285 00:16:09,880 --> 00:16:13,000 Speaker 1: left leaning or liberal because it's based in San Francisco, 286 00:16:13,280 --> 00:16:15,840 Speaker 1: and Sarah alluded to we've talked a little bit about 287 00:16:15,840 --> 00:16:18,280 Speaker 1: true social Perhaps, you know, he feels that he wants 288 00:16:18,280 --> 00:16:20,720 Speaker 1: to drag Twitter back into the center from a kind 289 00:16:20,720 --> 00:16:23,200 Speaker 1: of content moderation policy standpoint is the only clue we 290 00:16:23,240 --> 00:16:26,320 Speaker 1: have to go on. But beyond that, you know, what 291 00:16:26,400 --> 00:16:28,800 Speaker 1: today may clear is that he is not in favor 292 00:16:28,800 --> 00:16:32,720 Speaker 1: of outright band a time out perhaps making invisible tweets 293 00:16:32,720 --> 00:16:36,440 Speaker 1: that are dangerous or or breach a certain policy perhaps, 294 00:16:36,600 --> 00:16:41,480 Speaker 1: but not outright band all right, So much TBD, Ed Ludlow, 295 00:16:41,600 --> 00:16:53,880 Speaker 1: Sarah Fryar, thank you. A rough ride for Peloton, the 296 00:16:53,920 --> 00:16:57,040 Speaker 1: company tumbling to a record low after deeper than expected 297 00:16:57,120 --> 00:16:59,760 Speaker 1: losses in its latest earning to report, joined out by 298 00:17:00,040 --> 00:17:02,880 Speaker 1: Bloomberg s Mark German, who covers Peloton for So, just 299 00:17:03,000 --> 00:17:07,240 Speaker 1: how quickly is this bike maker going downhill? Mark uh? 300 00:17:07,280 --> 00:17:10,280 Speaker 1: As quickly as you can probably ride a Peloton bike 301 00:17:10,400 --> 00:17:13,960 Speaker 1: with all your energy. This company at this point is 302 00:17:14,080 --> 00:17:18,199 Speaker 1: an unmitigated disaster. I really, quite frankly, don't even know 303 00:17:18,240 --> 00:17:21,679 Speaker 1: why they went public in right, They went public just 304 00:17:21,720 --> 00:17:24,439 Speaker 1: a few months before the pandemic started, right, and that 305 00:17:24,560 --> 00:17:27,440 Speaker 1: really kicked off their sales. So all their success has 306 00:17:27,480 --> 00:17:30,159 Speaker 1: really only been in this pandemic period. This is a 307 00:17:30,160 --> 00:17:33,399 Speaker 1: company generating between three billion and four billion dollars per year. 308 00:17:33,800 --> 00:17:36,240 Speaker 1: This is not the companies like Apple that generate maybe 309 00:17:36,240 --> 00:17:39,080 Speaker 1: three or four billion dollars every week and a half, right, 310 00:17:39,119 --> 00:17:41,080 Speaker 1: So I'm not sure what they see the point in 311 00:17:41,400 --> 00:17:45,600 Speaker 1: being public and why they did that. Their numbers are disastrous. 312 00:17:45,640 --> 00:17:48,880 Speaker 1: They've missed on their revenue numbers for Q three now 313 00:17:48,880 --> 00:17:51,639 Speaker 1: in addition to last quarter Q two, they're projecting to 314 00:17:51,720 --> 00:17:54,000 Speaker 1: miss on estimates for next quarter as well as for 315 00:17:54,000 --> 00:17:57,560 Speaker 1: fiscal two they had to re guide yet again. So 316 00:17:57,720 --> 00:17:59,960 Speaker 1: things are not going so well for new CEO Barry mccar. 317 00:18:00,480 --> 00:18:03,159 Speaker 1: He came into the job on February nine, so just 318 00:18:03,240 --> 00:18:05,840 Speaker 1: about three months ago, right, and at this point the 319 00:18:05,880 --> 00:18:09,159 Speaker 1: stock is down over since he took over. Now, if 320 00:18:09,200 --> 00:18:12,280 Speaker 1: you compare that to the SNP five, I believe the 321 00:18:12,320 --> 00:18:15,639 Speaker 1: Peloton stock is down four or five x the larger market. 322 00:18:15,720 --> 00:18:17,760 Speaker 1: So clearly the problem is not only the market, but 323 00:18:17,800 --> 00:18:21,439 Speaker 1: it's Peloton investor belief, analyst belief, and in some cases 324 00:18:21,520 --> 00:18:24,840 Speaker 1: customer belief as well. So I'm sure Peloton would argue 325 00:18:24,880 --> 00:18:27,480 Speaker 1: with the fact that it's only success came in the pandemic. 326 00:18:27,880 --> 00:18:30,760 Speaker 1: You know, it did have a fairly strong brand name 327 00:18:30,800 --> 00:18:34,240 Speaker 1: going into the pandemic, But now that we're out of it, 328 00:18:34,280 --> 00:18:37,879 Speaker 1: what is Barry McCarthy's turnaround plan. You know, John Foley, 329 00:18:37,920 --> 00:18:41,159 Speaker 1: the former CEO, sold this vision of the pandemic teaching 330 00:18:41,200 --> 00:18:44,720 Speaker 1: more people about Peloton and these numbers being able to continue. 331 00:18:45,000 --> 00:18:48,040 Speaker 1: They completely failed with their ability to project supply and 332 00:18:48,119 --> 00:18:51,480 Speaker 1: demand going out of the pandemic. Barry McCarthy's turnaround plan 333 00:18:51,680 --> 00:18:53,520 Speaker 1: is to hike the subscription fee. So it's gonna go 334 00:18:53,560 --> 00:18:55,320 Speaker 1: from thirty nine months to forty four a month in 335 00:18:55,359 --> 00:18:57,960 Speaker 1: the US starting on June one, so in a bit 336 00:18:58,320 --> 00:19:00,600 Speaker 1: about three weeks from now, so we'll the impact that 337 00:19:00,640 --> 00:19:03,680 Speaker 1: has on subscription margins and subscription revenue. He's also cut 338 00:19:03,720 --> 00:19:06,560 Speaker 1: the prices of the treadmill and there are two major bikes, 339 00:19:06,560 --> 00:19:08,760 Speaker 1: the regular bike and the bike plus from between a 340 00:19:08,800 --> 00:19:11,280 Speaker 1: hundred and five dollars depending on which model you're getting. 341 00:19:11,640 --> 00:19:14,920 Speaker 1: That's obviously going to lower margins and lower revenue on hardware, 342 00:19:15,160 --> 00:19:17,359 Speaker 1: and they're opening over the long term, combined with the 343 00:19:17,440 --> 00:19:20,880 Speaker 1: leasing program that they'll have more you know, continuous revenue 344 00:19:21,160 --> 00:19:23,879 Speaker 1: right coming from subscriptions and coming from people signing up 345 00:19:23,880 --> 00:19:26,679 Speaker 1: on these monthly plans and maybe annual plans in the future. 346 00:19:27,000 --> 00:19:28,879 Speaker 1: So there is a plan in place, but on the 347 00:19:28,920 --> 00:19:31,199 Speaker 1: first three months of the job. It hasn't yet you know, 348 00:19:31,280 --> 00:19:34,520 Speaker 1: resulted in you know, positive momentum. All right, we'll see 349 00:19:34,520 --> 00:19:38,800 Speaker 1: how Peloton tries to retake control. Bloomberg s, Mark German, 350 00:19:39,000 --> 00:19:49,840 Speaker 1: thank you well, come back to Bloomware Technology and Emily 351 00:19:49,920 --> 00:19:52,720 Speaker 1: changes San Francisco. Well, the recent tech sell off is 352 00:19:52,720 --> 00:19:57,280 Speaker 1: alluding to massive valuation haircuts in public and private markets, 353 00:19:57,280 --> 00:20:01,000 Speaker 1: with funding harder to raise in uncertain ten times, how 354 00:20:01,080 --> 00:20:04,480 Speaker 1: do founders keep building? Tony Fidel, one of the key 355 00:20:04,520 --> 00:20:07,359 Speaker 1: players behind the iPod and the iPhone at Apple, and 356 00:20:07,359 --> 00:20:09,320 Speaker 1: of course the co founder of Nest, is out with 357 00:20:09,359 --> 00:20:13,760 Speaker 1: a new book, Build, an Unorthodox Guide to Making Things 358 00:20:13,800 --> 00:20:16,800 Speaker 1: Worth Making. He joins us now with some advice for 359 00:20:16,920 --> 00:20:19,320 Speaker 1: entrepreneurs today. Tony, It's always great to have you back 360 00:20:19,320 --> 00:20:24,040 Speaker 1: here on the show and always appreciate hearing your unorthodox 361 00:20:24,240 --> 00:20:28,760 Speaker 1: advice in times like this. Just what advice would you 362 00:20:28,800 --> 00:20:33,359 Speaker 1: give entrepreneurs batting down the hatches? Well, first, hopefully you 363 00:20:33,400 --> 00:20:37,119 Speaker 1: didn't go into some craziness and overextend yourself. So the 364 00:20:37,160 --> 00:20:39,760 Speaker 1: first thing was, I hope you didn't take a valuation 365 00:20:39,800 --> 00:20:42,320 Speaker 1: you shouldn't have just because it looked great on paper. 366 00:20:42,560 --> 00:20:44,359 Speaker 1: You know it was too high. But if you did 367 00:20:44,600 --> 00:20:46,679 Speaker 1: You're going to have to write the ship. And the 368 00:20:46,720 --> 00:20:51,159 Speaker 1: biggest thing is the UH is reminding your team that 369 00:20:51,280 --> 00:20:54,200 Speaker 1: those numbers were all fabricated, those were all made up 370 00:20:54,440 --> 00:20:56,760 Speaker 1: kind of things, and go back to the business of 371 00:20:57,160 --> 00:21:01,359 Speaker 1: working on your mission and achieving that. Also trimming the sales, 372 00:21:01,680 --> 00:21:05,040 Speaker 1: so you have to go back and to first principles 373 00:21:05,240 --> 00:21:09,400 Speaker 1: and stop, you know, thinking about this overinflated market had 374 00:21:09,480 --> 00:21:12,800 Speaker 1: has changed, It has changed dramatically. It will it will 375 00:21:12,880 --> 00:21:16,080 Speaker 1: levelize again. We're gonna swing in the pendulum, swinging one way, 376 00:21:16,200 --> 00:21:19,560 Speaker 1: swinging the other way. But again, stay focused on the work. 377 00:21:20,000 --> 00:21:22,840 Speaker 1: Go make your mission happen, but don't worry about all 378 00:21:22,880 --> 00:21:25,000 Speaker 1: the craziness around it. We're going to take care of you. 379 00:21:25,160 --> 00:21:27,720 Speaker 1: The biggest thing is taking care of your team. So 380 00:21:27,800 --> 00:21:30,000 Speaker 1: I'm sure we could talk about this next question for hours, 381 00:21:30,040 --> 00:21:32,720 Speaker 1: but in a nutshell, what are some lessons you learned 382 00:21:32,800 --> 00:21:37,960 Speaker 1: the hard way? Oh jeez, let me count um. I 383 00:21:38,000 --> 00:21:41,159 Speaker 1: think the biggest one was understanding timing. You know you 384 00:21:41,200 --> 00:21:43,440 Speaker 1: have you could have great technology, can have great things. 385 00:21:43,640 --> 00:21:46,320 Speaker 1: Understanding timing, you know the market has to be ready 386 00:21:46,400 --> 00:21:48,520 Speaker 1: or ready to listen to what the innovation you have. 387 00:21:49,080 --> 00:21:52,120 Speaker 1: The second thing I think is really understanding how you're 388 00:21:52,119 --> 00:21:54,640 Speaker 1: telling your story, and you have to tell a story 389 00:21:54,680 --> 00:21:57,320 Speaker 1: of why, why, why. That's what's in the book Build. 390 00:21:57,680 --> 00:22:01,240 Speaker 1: It's all about the why. Too many times tech founders 391 00:22:01,320 --> 00:22:03,680 Speaker 1: and engineers and people in the in the tech world 392 00:22:03,800 --> 00:22:07,480 Speaker 1: worry about the what what what? It starts with the why? 393 00:22:07,680 --> 00:22:10,240 Speaker 1: Why do customers need it? What pain are you solving? 394 00:22:10,600 --> 00:22:13,800 Speaker 1: What do you need to do to get that message across? 395 00:22:13,880 --> 00:22:16,639 Speaker 1: And make sure then your product delivers on that. Stop 396 00:22:16,680 --> 00:22:19,080 Speaker 1: worrying about the bits and bites. Start working on the 397 00:22:19,200 --> 00:22:21,640 Speaker 1: story and making sure that story is a pain killer, 398 00:22:21,880 --> 00:22:25,160 Speaker 1: not a vitamin. Now, Google bought one of the things 399 00:22:25,200 --> 00:22:28,400 Speaker 1: you built, and that was Nest. It didn't necessarily go 400 00:22:28,800 --> 00:22:33,480 Speaker 1: as planned. What's your take on what went wrong? Let's 401 00:22:33,520 --> 00:22:36,160 Speaker 1: say there, well was in it was in the book, 402 00:22:36,280 --> 00:22:39,119 Speaker 1: but i'll how can we put it this way? We 403 00:22:39,200 --> 00:22:42,040 Speaker 1: spent six months trying to figure out the right way 404 00:22:42,040 --> 00:22:45,080 Speaker 1: to work together and if this marriage what I called 405 00:22:45,160 --> 00:22:47,400 Speaker 1: was a marriage was going to work out. And so 406 00:22:47,520 --> 00:22:50,040 Speaker 1: it was working okay for the first kind of two 407 00:22:50,200 --> 00:22:53,920 Speaker 1: three quarters and then it was like the tindler swindler, 408 00:22:54,560 --> 00:22:56,679 Speaker 1: Uh what we were sold as bill of goods? We 409 00:22:56,680 --> 00:22:58,440 Speaker 1: were sold in this marriage all of a sudden turned 410 00:22:58,480 --> 00:23:02,680 Speaker 1: to be blown up and it really boiled down to um. 411 00:23:02,720 --> 00:23:05,640 Speaker 1: I thought that a something they would purchase for three 412 00:23:05,640 --> 00:23:08,280 Speaker 1: point two billion would be something they would take in 413 00:23:08,400 --> 00:23:11,399 Speaker 1: and cherish and be and understand that they have to 414 00:23:11,480 --> 00:23:13,880 Speaker 1: nurture it and and take care of it. They were 415 00:23:13,920 --> 00:23:15,760 Speaker 1: making so much money, and they continue to make so 416 00:23:15,840 --> 00:23:17,800 Speaker 1: much money. They went on to other and different things, 417 00:23:17,800 --> 00:23:20,959 Speaker 1: and we were just yet another toy that was uh, 418 00:23:21,960 --> 00:23:24,560 Speaker 1: you know, a period of time. So for us, what 419 00:23:24,600 --> 00:23:27,080 Speaker 1: we thought was going to be a great marriage turned 420 00:23:27,119 --> 00:23:29,560 Speaker 1: out to be like a fling for them, and for 421 00:23:29,640 --> 00:23:31,719 Speaker 1: us we were kind of left hanging at the you know, 422 00:23:32,400 --> 00:23:34,480 Speaker 1: left hanging while they went and did other things. So 423 00:23:34,520 --> 00:23:38,720 Speaker 1: it was really about focus and about leadership, um and 424 00:23:38,720 --> 00:23:40,600 Speaker 1: and And that's what I think happened at the end 425 00:23:40,600 --> 00:23:43,000 Speaker 1: of the day of why it didn't work out. Okay, 426 00:23:43,040 --> 00:23:47,720 Speaker 1: speaking of another unorthodox marriage that that could happen between 427 00:23:47,960 --> 00:23:50,760 Speaker 1: Elon Musk and Twitter, he's proposed, he said a few 428 00:23:50,760 --> 00:23:53,520 Speaker 1: times today. You know it might not go through, But 429 00:23:53,720 --> 00:23:59,160 Speaker 1: what do you make of that deal? Well, look, Elon's 430 00:23:59,160 --> 00:24:02,080 Speaker 1: an innovator, and he's a brash one at that. You 431 00:24:02,160 --> 00:24:04,280 Speaker 1: have to give him credit for what he's manifested in 432 00:24:04,320 --> 00:24:06,879 Speaker 1: this world, and how he's shamed the autumn industry to 433 00:24:07,000 --> 00:24:09,399 Speaker 1: move and all these other things. I think, you know, 434 00:24:09,520 --> 00:24:11,439 Speaker 1: we look at back in the days of the oil 435 00:24:11,440 --> 00:24:13,800 Speaker 1: barons and what have you, and they bought media, right, 436 00:24:13,840 --> 00:24:16,439 Speaker 1: they bought media to control, to share the story, shaped 437 00:24:16,480 --> 00:24:19,679 Speaker 1: the message of what they were doing. I think you 438 00:24:19,720 --> 00:24:22,240 Speaker 1: know that there's some echoes of that in in in 439 00:24:22,320 --> 00:24:25,480 Speaker 1: Elan are trying to purchase Twitter. But I also think 440 00:24:25,560 --> 00:24:28,159 Speaker 1: that there are things that Twitter needs to solve and 441 00:24:28,200 --> 00:24:31,800 Speaker 1: haven't solved for many years, um in terms of the algorithms, 442 00:24:31,800 --> 00:24:35,040 Speaker 1: how they work, UM, some of some of the the 443 00:24:36,200 --> 00:24:39,320 Speaker 1: innovations in terms of editing tweets, the leading tweets, UH 444 00:24:39,720 --> 00:24:43,200 Speaker 1: content moderation that said, you know, you could go all 445 00:24:43,240 --> 00:24:45,760 Speaker 1: the way the other way where there's no controls, where 446 00:24:45,760 --> 00:24:50,480 Speaker 1: you remove everything and it becomes something that is reminiscent 447 00:24:50,480 --> 00:24:52,679 Speaker 1: of a four chan or an eight chan or whatever 448 00:24:52,720 --> 00:24:57,080 Speaker 1: the latest toxic social media network or broadcast one too 449 00:24:57,080 --> 00:25:00,840 Speaker 1: many platform is. So I hope that Ellen is able 450 00:25:00,880 --> 00:25:03,000 Speaker 1: to actually look at this and say, I'm going to 451 00:25:03,119 --> 00:25:07,520 Speaker 1: divorce the world of the algorithm and revenue from the 452 00:25:07,560 --> 00:25:12,560 Speaker 1: tweet stream and amplifying messages that can have misinformation, ugly information, 453 00:25:13,000 --> 00:25:15,239 Speaker 1: things that called genocide and all those those things. We 454 00:25:15,320 --> 00:25:18,959 Speaker 1: need to separate the capital and that revenue from the 455 00:25:19,040 --> 00:25:22,600 Speaker 1: messages that are amplified by the algorithm. If they are 456 00:25:22,640 --> 00:25:25,320 Speaker 1: tied like they have been, that's when we have the 457 00:25:25,359 --> 00:25:28,760 Speaker 1: toxicity that that happens, because if it bleeds, it leads, 458 00:25:28,800 --> 00:25:31,399 Speaker 1: As you know, and and I hope Ellen is going 459 00:25:31,480 --> 00:25:33,560 Speaker 1: to be doing the right thing, even if he brings 460 00:25:34,160 --> 00:25:39,399 Speaker 1: Trump back on Trump shouldn't be amplified for revenue gains. 461 00:25:40,040 --> 00:25:41,880 Speaker 1: So let's talk about that for a moment. I want 462 00:25:41,920 --> 00:25:43,439 Speaker 1: you to take a listen to what Ellen had to 463 00:25:43,480 --> 00:25:46,760 Speaker 1: say about the banning of President Trump today. Take a listen. 464 00:25:47,359 --> 00:25:51,159 Speaker 1: Sure I would reverse the homavan. Obviously I'm not. I 465 00:25:51,200 --> 00:25:53,080 Speaker 1: don't own Twitter yet, So this is not like a 466 00:25:53,240 --> 00:25:55,080 Speaker 1: thing that will definitely happen, because what if I don't 467 00:25:55,119 --> 00:26:00,280 Speaker 1: own Twitter. Is bringing Trump back on Twitter the right call. 468 00:26:01,840 --> 00:26:04,240 Speaker 1: It depends on the algorithms, It depends on the other 469 00:26:04,600 --> 00:26:06,960 Speaker 1: it depends on the environment that he's brought back in. 470 00:26:07,520 --> 00:26:09,840 Speaker 1: So to me, if he can amplify and he can 471 00:26:09,880 --> 00:26:13,640 Speaker 1: continue the misinformation and that he has been doing um 472 00:26:13,720 --> 00:26:17,520 Speaker 1: and and then and that is for revenue purposes, then 473 00:26:17,560 --> 00:26:20,520 Speaker 1: it is wrong. Everyone could have freedom of speech, but 474 00:26:20,600 --> 00:26:23,800 Speaker 1: it has to come with confidence consequences, and it cannot 475 00:26:23,840 --> 00:26:27,680 Speaker 1: be tied to revenue. That says, the more, the more 476 00:26:27,800 --> 00:26:31,600 Speaker 1: toxic it is, or the more you know entertainment value 477 00:26:31,640 --> 00:26:34,320 Speaker 1: it is, you make more revenue. If that's the case, 478 00:26:34,440 --> 00:26:37,120 Speaker 1: then he should not be allowed back onto the platform. 479 00:26:37,400 --> 00:26:40,080 Speaker 1: Everyone should have a level playing field and it shouldn't 480 00:26:40,119 --> 00:26:42,639 Speaker 1: be tied to your revenue dollars that you know that 481 00:26:42,800 --> 00:26:46,119 Speaker 1: is going to be seen by the company itself. Now, 482 00:26:46,400 --> 00:26:49,040 Speaker 1: Apple today, just in time for you to join us, 483 00:26:49,119 --> 00:26:55,040 Speaker 1: discontinued its last iPod model. And obviously the iPod led 484 00:26:55,080 --> 00:26:58,760 Speaker 1: to two decades of of of innovation at Apple, led 485 00:26:58,800 --> 00:27:02,840 Speaker 1: to the iPhone. But how do you reflect on kind 486 00:27:02,840 --> 00:27:05,679 Speaker 1: of the end of an era for the iPod and 487 00:27:06,240 --> 00:27:10,880 Speaker 1: the thing that you are the father of. Well look, um, 488 00:27:10,920 --> 00:27:13,919 Speaker 1: at the end of the day, technology marches on. Okay, 489 00:27:13,960 --> 00:27:17,439 Speaker 1: the beat never stops. You know, you could I I 490 00:27:17,520 --> 00:27:20,040 Speaker 1: remember I lamented the day when the Apple two was dead, 491 00:27:20,160 --> 00:27:22,679 Speaker 1: But the Apple two died in the nineties, well past 492 00:27:22,800 --> 00:27:25,920 Speaker 1: the date when you know the Mac took over and 493 00:27:26,000 --> 00:27:30,120 Speaker 1: in the later eighties. Um, then again, you know, when 494 00:27:30,119 --> 00:27:33,000 Speaker 1: we look at it. The iPod was already starting to 495 00:27:33,040 --> 00:27:37,439 Speaker 1: be cannibalized or dying around the time of the iPhone. Right, 496 00:27:37,560 --> 00:27:40,640 Speaker 1: it was always understood at some point, at some sometimes 497 00:27:40,840 --> 00:27:43,520 Speaker 1: that the cannibalization of the iPod would be complete. I 498 00:27:43,560 --> 00:27:46,760 Speaker 1: can't believe that the iPod has lasted this long, actually, 499 00:27:46,840 --> 00:27:49,000 Speaker 1: to tell you the truth. So you know, it's an 500 00:27:49,000 --> 00:27:51,440 Speaker 1: the end of an era, but it is a cornerstone. 501 00:27:51,520 --> 00:27:55,000 Speaker 1: It's an indelible piece of Apple history, of technology in 502 00:27:55,119 --> 00:27:57,800 Speaker 1: general history, just like the Apple two was the Mac 503 00:27:57,920 --> 00:28:01,640 Speaker 1: is and those things are going to live on well beyond. 504 00:28:01,960 --> 00:28:04,760 Speaker 1: And then if it wasn't for the iPod, we wouldn't 505 00:28:04,760 --> 00:28:07,879 Speaker 1: have the iPhone. So all of these things are stepping stones. 506 00:28:07,960 --> 00:28:10,880 Speaker 1: That's how technology works. So I can, you know, I can. 507 00:28:11,000 --> 00:28:14,320 Speaker 1: I can think fondly of those days and those incredible times, 508 00:28:14,480 --> 00:28:16,840 Speaker 1: and the Apple that we know today would not have 509 00:28:16,920 --> 00:28:20,440 Speaker 1: existed without that development and that that crazy time, that 510 00:28:20,600 --> 00:28:24,400 Speaker 1: fun time that was iPod. So how would you rate 511 00:28:24,760 --> 00:28:27,639 Speaker 1: the innovation and building that's happening at Apple today again 512 00:28:27,720 --> 00:28:31,560 Speaker 1: in a nutshell, especially how they're managing or navigating the 513 00:28:31,600 --> 00:28:35,200 Speaker 1: supply chain issues. Well, you know the supply chain. Let's 514 00:28:35,240 --> 00:28:37,120 Speaker 1: put casts that aside. But if you look at innovation 515 00:28:37,160 --> 00:28:39,880 Speaker 1: in general, and I think they're doing a great job 516 00:28:39,880 --> 00:28:42,080 Speaker 1: on the supply chain given what we're hearing from other 517 00:28:42,120 --> 00:28:44,480 Speaker 1: companies and those sides of things. So I think, you know, 518 00:28:44,520 --> 00:28:46,520 Speaker 1: look at the quarterly results that just came out, so 519 00:28:46,640 --> 00:28:49,320 Speaker 1: I think managing supply chain given the macro environment is 520 00:28:49,360 --> 00:28:51,760 Speaker 1: really difficult, and they're doing a good job trying to 521 00:28:51,800 --> 00:28:53,959 Speaker 1: thread that needle. But when you look at innovation at 522 00:28:53,960 --> 00:28:57,400 Speaker 1: Apple today, innovation at Apple today is very strong. It's 523 00:28:57,440 --> 00:29:00,760 Speaker 1: not the same kind of innovation that the consumer of innovation, 524 00:29:00,760 --> 00:29:03,160 Speaker 1: whether it was the iPod or iPhone or AirPods or 525 00:29:03,200 --> 00:29:06,080 Speaker 1: what have you. When you look at the innovation, it's 526 00:29:06,120 --> 00:29:09,520 Speaker 1: happening all at the lowest levels. The sensor's face, I 527 00:29:09,600 --> 00:29:13,160 Speaker 1: D touch, I D. We have things like um uh, 528 00:29:13,200 --> 00:29:16,200 Speaker 1: the M one processor that has been an innovation that 529 00:29:16,560 --> 00:29:19,120 Speaker 1: was born out of the two thousand and eight time 530 00:29:19,120 --> 00:29:21,560 Speaker 1: frame when I was there and Bob Bansfield and I 531 00:29:21,560 --> 00:29:24,520 Speaker 1: bought p A Semi and created the you know, the 532 00:29:25,600 --> 00:29:28,960 Speaker 1: max silicon for or excusing the Apple silicon for the 533 00:29:28,960 --> 00:29:31,240 Speaker 1: iPhone and now is now the max silicon. It took 534 00:29:31,280 --> 00:29:33,600 Speaker 1: a long time to get there, but those kinds of 535 00:29:33,840 --> 00:29:38,239 Speaker 1: innovations are cement Apple into the future for more and 536 00:29:38,320 --> 00:29:41,920 Speaker 1: more um for more and more transformation, more and more innovation. 537 00:29:42,320 --> 00:29:45,640 Speaker 1: So we're seeing the hints of that. It's happening at 538 00:29:45,680 --> 00:29:47,840 Speaker 1: the lowest levels, but it will come out in other 539 00:29:47,960 --> 00:29:54,280 Speaker 1: products over time. Tony Fidel Future Shape Now you're an 540 00:29:54,360 --> 00:29:56,800 Speaker 1: investment arm Tony. Always great to have you here on 541 00:29:56,840 --> 00:29:59,080 Speaker 1: the show and to hear your thoughts on the broaderst 542 00:29:59,080 --> 00:30:01,920 Speaker 1: tech landscape. Thanks for joining us, and yeah, by the 543 00:30:01,920 --> 00:30:06,080 Speaker 1: book build coming up. Stable Coins used to be the 544 00:30:06,160 --> 00:30:08,920 Speaker 1: safe bet in crypto, but doesny won over world more? 545 00:30:09,080 --> 00:30:12,760 Speaker 1: N xt r is Bloomberg. Stable Coins are serve a 546 00:30:12,840 --> 00:30:15,960 Speaker 1: huge purpose in the crypto and the defied economy, and 547 00:30:16,000 --> 00:30:18,040 Speaker 1: they're here to stay. And I think it will also 548 00:30:18,160 --> 00:30:22,680 Speaker 1: help out um, you know, all activity on the on 549 00:30:22,880 --> 00:30:26,160 Speaker 1: various chains, so I hope the regulators recognized that as well. 550 00:30:40,360 --> 00:30:42,480 Speaker 1: It is time now for our crypto report, and let's 551 00:30:42,480 --> 00:30:44,959 Speaker 1: start with what came out of coin bases latest results. 552 00:30:44,960 --> 00:30:48,080 Speaker 1: Our crypto contributor Sali Bossi here with more. Shanalie take 553 00:30:48,080 --> 00:30:50,040 Speaker 1: it away, Emily, thank you so much. We have coin 554 00:30:50,080 --> 00:30:54,560 Speaker 1: Basis down almost four after market after reporting earnings that 555 00:30:54,600 --> 00:30:57,920 Speaker 1: have missed analysts estimates on Wall Street. You have them 556 00:30:57,960 --> 00:31:02,280 Speaker 1: falling short on monthly transact users, falling by about two 557 00:31:02,360 --> 00:31:04,920 Speaker 1: million from the prior quarter, even though it's higher than 558 00:31:04,960 --> 00:31:08,760 Speaker 1: a year ago. First quarter revenue also below analysts estimates. 559 00:31:08,960 --> 00:31:11,120 Speaker 1: Remember this is already for a stock that is down 560 00:31:11,160 --> 00:31:14,680 Speaker 1: more than seventy percent this year, more than sevent if 561 00:31:14,680 --> 00:31:16,920 Speaker 1: you look at the last twelve months, there was an 562 00:31:16,920 --> 00:31:20,560 Speaker 1: expectation that growth would slow, and they say coin based 563 00:31:20,600 --> 00:31:22,960 Speaker 1: that is that growth would slow into this current quarter, 564 00:31:23,080 --> 00:31:25,200 Speaker 1: the second quarter of this year as well. You have 565 00:31:25,240 --> 00:31:28,520 Speaker 1: coin Based CEO Brian Armstrong addressing analysts at this moment 566 00:31:28,520 --> 00:31:31,520 Speaker 1: saying they will eventually be profitable, but they are guiding 567 00:31:31,560 --> 00:31:35,360 Speaker 1: that they will still be unprofitable for this year. The 568 00:31:35,480 --> 00:31:38,400 Speaker 1: question is will investors be patient with them as they 569 00:31:38,440 --> 00:31:41,160 Speaker 1: make it through a very volatile time in bitcoin, as 570 00:31:41,200 --> 00:31:45,280 Speaker 1: they seek to diversify away from just trading revenues into 571 00:31:45,320 --> 00:31:48,080 Speaker 1: new products like that n f T marketplace and start 572 00:31:48,120 --> 00:31:51,720 Speaker 1: to work with more banks and institutions. Emily alright, Shanali, 573 00:31:52,040 --> 00:31:56,080 Speaker 1: thank you. I want to turn out to algorithmic stable coins. 574 00:31:56,120 --> 00:31:58,880 Speaker 1: This came up recently UH in a discussion with Treasury 575 00:31:58,920 --> 00:32:03,400 Speaker 1: Secretary Janet Yellen. They're more traditional counterparts. Dollar backed stable 576 00:32:03,440 --> 00:32:07,160 Speaker 1: coins as well, supposed to provide calm and the chaos 577 00:32:07,160 --> 00:32:11,400 Speaker 1: of crypto. But the algorithm stable coin called terra USD 578 00:32:11,640 --> 00:32:15,040 Speaker 1: plunge to sixty cents Monday instead of trading at a 579 00:32:15,080 --> 00:32:18,960 Speaker 1: dollar as designed. It's now back around nineties cents. But 580 00:32:19,200 --> 00:32:22,680 Speaker 1: is this assign a trouble for stable coins? More broadly, 581 00:32:22,720 --> 00:32:25,800 Speaker 1: I want to bring in Falconex's head of institutional coverage, 582 00:32:25,840 --> 00:32:29,400 Speaker 1: Ia Kantorovich for her take on all this. Let's zoom 583 00:32:29,440 --> 00:32:31,680 Speaker 1: in here on terra ile. What do you think this 584 00:32:31,760 --> 00:32:35,440 Speaker 1: activity means? So? I think there's a couple of things 585 00:32:35,440 --> 00:32:38,400 Speaker 1: that play here. The first is, uh, you know this 586 00:32:38,600 --> 00:32:41,200 Speaker 1: is there is a difference between an algorithmic stable coin 587 00:32:41,360 --> 00:32:44,280 Speaker 1: versus a stable coin that's backed one to one with 588 00:32:44,400 --> 00:32:46,640 Speaker 1: the US dollar. And so if you look at the 589 00:32:46,680 --> 00:32:50,680 Speaker 1: comparison between USDC and us D T tether, us T 590 00:32:50,960 --> 00:32:54,040 Speaker 1: is a blend of both Luna and ust, which is 591 00:32:54,040 --> 00:32:56,160 Speaker 1: meanted and burned in order to maintain that one to 592 00:32:56,280 --> 00:32:58,760 Speaker 1: one peg. What happened this weekend is we saw a 593 00:32:58,880 --> 00:33:02,640 Speaker 1: large motivated seller go into the market and depressed that 594 00:33:02,760 --> 00:33:06,840 Speaker 1: USD price and deep peg. The algorithmic stable coin, causing 595 00:33:07,120 --> 00:33:10,160 Speaker 1: uh an initial drop down to it was roughly point 596 00:33:10,280 --> 00:33:14,160 Speaker 1: eight cents on the dollar. And really, why is that concerning? 597 00:33:14,200 --> 00:33:17,720 Speaker 1: It's really concerning because the Luna Foundation Guard which manages 598 00:33:17,760 --> 00:33:21,120 Speaker 1: all of these applications on top, also manages a yield 599 00:33:21,200 --> 00:33:26,120 Speaker 1: pool called anchor. Uh An anchor has been generating over 600 00:33:26,960 --> 00:33:30,080 Speaker 1: yields now eighteen percent yield for a number of personas 601 00:33:30,080 --> 00:33:34,040 Speaker 1: anywhere between retail two institutional. And so what happens is 602 00:33:34,120 --> 00:33:38,840 Speaker 1: you had roughly seventeen billion of total value locked in 603 00:33:39,040 --> 00:33:43,280 Speaker 1: anchor now drop significantly due to that deep pegging because 604 00:33:43,280 --> 00:33:46,760 Speaker 1: people were getting liquidated once that peg was no longer 605 00:33:46,840 --> 00:33:49,600 Speaker 1: one to one, and you saw the Luna Foundation have 606 00:33:49,760 --> 00:33:52,680 Speaker 1: to engage in order to repeg that stable coin, and 607 00:33:52,720 --> 00:33:55,520 Speaker 1: as you mentioned yesterday, saw that peg drop all the 608 00:33:55,520 --> 00:33:59,920 Speaker 1: way down to sixty cents on the dollar. Meantime, Treasury 609 00:34:00,000 --> 00:34:04,560 Speaker 1: Secretary Janet Yellen brought up Tara recently and talked about 610 00:34:04,560 --> 00:34:08,200 Speaker 1: stable coins more broadly as a risk to financial stability. 611 00:34:08,280 --> 00:34:11,719 Speaker 1: Take a listen to what Yellen had to say. Terra 612 00:34:11,960 --> 00:34:17,480 Speaker 1: us Dum experienced to run and had declined in value 613 00:34:17,960 --> 00:34:23,360 Speaker 1: and UM, well, so I think that simply illustrates that 614 00:34:23,840 --> 00:34:29,640 Speaker 1: this is a rapidly growing a product and um that 615 00:34:29,800 --> 00:34:33,560 Speaker 1: there there are risks to financial stability and we need 616 00:34:33,560 --> 00:34:38,719 Speaker 1: a framework that's that's appropriate. Hi, what's your response to 617 00:34:38,760 --> 00:34:42,880 Speaker 1: that we need a framework to far more than just 618 00:34:42,960 --> 00:34:45,880 Speaker 1: stable coins and crypto And I would say, you know, 619 00:34:46,080 --> 00:34:50,239 Speaker 1: this strengthens the approach towards stable coins like us d C, 620 00:34:51,040 --> 00:34:54,000 Speaker 1: which is now a forty billion in market cap, as 621 00:34:54,040 --> 00:34:56,120 Speaker 1: well as us d T, which is eight billion in 622 00:34:56,239 --> 00:34:59,440 Speaker 1: market cap. You've also seen other algorithmics stable coins like 623 00:34:59,600 --> 00:35:03,399 Speaker 1: tracks gain in traction. I think the largest question here 624 00:35:03,600 --> 00:35:06,600 Speaker 1: is really, uh, whether or not it's algorithmic or it's 625 00:35:06,640 --> 00:35:10,040 Speaker 1: one to one peg, and whether or not investors, uh, 626 00:35:10,120 --> 00:35:13,200 Speaker 1: you know they have faith in the algorithmic stable coin. 627 00:35:13,239 --> 00:35:15,560 Speaker 1: But again going back to Anchor, if you look at 628 00:35:15,600 --> 00:35:19,200 Speaker 1: where that seventeen billion now six earlier today, it was 629 00:35:19,280 --> 00:35:23,400 Speaker 1: less than seven billion dollars left in Anchor still decreasing, 630 00:35:23,480 --> 00:35:26,640 Speaker 1: really reflecting that I don't think the retail and institutional 631 00:35:26,640 --> 00:35:30,319 Speaker 1: investors have much faith that that PEG maintain algorithmically in 632 00:35:30,360 --> 00:35:33,040 Speaker 1: a decentralized fashion. You know, there's a question here, and 633 00:35:33,080 --> 00:35:36,960 Speaker 1: you do see ust dropping once again removing that peg 634 00:35:37,000 --> 00:35:40,720 Speaker 1: even further at seventy nine cents according to coin based prices, 635 00:35:40,760 --> 00:35:43,919 Speaker 1: So you still see that volatility into today, even when 636 00:35:43,920 --> 00:35:46,359 Speaker 1: you see Bitcoin recovering a little bit. So I am 637 00:35:46,400 --> 00:35:51,320 Speaker 1: wondering here what broader ramification is there, especially for defy 638 00:35:51,520 --> 00:35:54,239 Speaker 1: as the as the market starts to move forward. Here, 639 00:35:56,080 --> 00:35:58,560 Speaker 1: I think the difference is really if you take for example, 640 00:35:58,719 --> 00:36:01,320 Speaker 1: Maker and Die, you have a number of these potential 641 00:36:01,400 --> 00:36:04,960 Speaker 1: runs happened historically, but the market has corrected and shown 642 00:36:05,480 --> 00:36:10,480 Speaker 1: resilience through those market volatility terms. Overall crypto itself, as 643 00:36:10,520 --> 00:36:14,479 Speaker 1: you mentioned Bitcoin eve, we've stayed relatively rangebound last week 644 00:36:14,680 --> 00:36:16,880 Speaker 1: and will likely continue to be rangebound had it not 645 00:36:17,000 --> 00:36:20,640 Speaker 1: been uh this anchor run for the money. And so 646 00:36:20,719 --> 00:36:23,480 Speaker 1: what we'll likely see is we'll likely see that capital 647 00:36:23,800 --> 00:36:27,040 Speaker 1: go into other forms of yield generating assets. I think 648 00:36:27,320 --> 00:36:29,719 Speaker 1: right now what we're hearing across the desk is all 649 00:36:29,760 --> 00:36:33,759 Speaker 1: institutional clients want some level of yield and flat is 650 00:36:33,800 --> 00:36:35,799 Speaker 1: the new up. And so if you can maintain a 651 00:36:35,880 --> 00:36:39,879 Speaker 1: flat return relative to what's happening in public markets and crypto, 652 00:36:40,040 --> 00:36:42,440 Speaker 1: that is what your LPs are looking for, and so 653 00:36:42,520 --> 00:36:46,440 Speaker 1: they will find it either and swaps derivatives and structured products, 654 00:36:46,440 --> 00:36:49,640 Speaker 1: and and that's really where we're focused. All right. Falcon 655 00:36:49,800 --> 00:36:52,600 Speaker 1: X is had of institutional coverage. I A. Kantorovitch along 656 00:36:52,600 --> 00:36:56,440 Speaker 1: with Bloombergtionale Bastik. Thank you. Now to a quick update 657 00:36:56,480 --> 00:36:59,879 Speaker 1: on Elon Musk's bid for Twitter. Apollo plans to lead 658 00:36:59,920 --> 00:37:03,640 Speaker 1: a billion dollars in financing for that BIB. This adds 659 00:37:03,680 --> 00:37:06,440 Speaker 1: to the long list of unusual investors that Musk has 660 00:37:06,480 --> 00:37:09,760 Speaker 1: secured for his deal to buy Twitter, ranging from Larry 661 00:37:09,800 --> 00:37:13,240 Speaker 1: Ellison to Sequoia and Andres and Horowitz, to the crypto 662 00:37:13,320 --> 00:37:26,319 Speaker 1: firm Finance, a Saudi Prince and more. It is time 663 00:37:26,320 --> 00:37:29,000 Speaker 1: now for this week's teconomics segment in our spotlight is 664 00:37:29,040 --> 00:37:32,960 Speaker 1: on solar panel energy. Rooftop solar is a surging sector, 665 00:37:33,040 --> 00:37:37,360 Speaker 1: but only four percent of homes feature solar panels. However, 666 00:37:37,440 --> 00:37:42,160 Speaker 1: investors from Lebron James Arnold Schwarzenegger believe pal Meadow can 667 00:37:42,200 --> 00:37:44,200 Speaker 1: turn that around. I want to bring in Palmetto founder 668 00:37:44,200 --> 00:37:46,840 Speaker 1: and CEO Chris Kemper. Chris, thank you, So, how have 669 00:37:46,920 --> 00:37:50,480 Speaker 1: you gotten folks like Drake and Bono and Arnold Schwarzenegger 670 00:37:50,880 --> 00:37:54,520 Speaker 1: on board? Yeah? Well, thanks, Emily, appreciate having me Um 671 00:37:54,560 --> 00:37:56,919 Speaker 1: I think that these types of investors see what we've 672 00:37:56,960 --> 00:37:59,560 Speaker 1: seen him been working on since two thousand nine, which is, 673 00:37:59,600 --> 00:38:02,719 Speaker 1: you know, linemate change and energy independence is a is 674 00:38:02,719 --> 00:38:06,000 Speaker 1: a big problem um for Palmetto. You know, unlike peers 675 00:38:06,000 --> 00:38:09,800 Speaker 1: in our space, we're primarily those firms are primarily focused 676 00:38:09,840 --> 00:38:13,680 Speaker 1: on construction. We're focused on end end tech platform solving 677 00:38:13,719 --> 00:38:16,759 Speaker 1: for solar delivery. And we can lay that on three 678 00:38:16,800 --> 00:38:20,120 Speaker 1: simple steps for you. So one is, whether it's an 679 00:38:20,120 --> 00:38:24,600 Speaker 1: individual entrepreneur or a fortune company, we provide them with 680 00:38:24,640 --> 00:38:28,480 Speaker 1: the tools to enable to sell the consumers to We 681 00:38:28,560 --> 00:38:32,200 Speaker 1: then provide a seamless, delighted experience to the consumers which 682 00:38:32,239 --> 00:38:36,360 Speaker 1: helps build our brand experience. And then thirdly, we provide 683 00:38:36,360 --> 00:38:40,239 Speaker 1: full supply chain management, financing, quality control to our build 684 00:38:40,280 --> 00:38:42,680 Speaker 1: partners to actually install the physical project in the market 685 00:38:42,680 --> 00:38:45,279 Speaker 1: and that that that delivers about a seventy five net 686 00:38:45,320 --> 00:38:52,200 Speaker 1: promoter score. So now you and Jamath Polyhopatia have pitched 687 00:38:52,320 --> 00:38:55,239 Speaker 1: a three trillion dollar investment by the US government to 688 00:38:55,360 --> 00:38:59,320 Speaker 1: fund solar for the entire country. How exactly would this work? 689 00:38:59,400 --> 00:39:01,640 Speaker 1: And have you got in any feedback from the White House. 690 00:39:02,200 --> 00:39:04,000 Speaker 1: We haven't gotten feedback from the White House to a 691 00:39:04,120 --> 00:39:07,600 Speaker 1: dress that point directly. We do believe that ultimately if 692 00:39:07,640 --> 00:39:10,359 Speaker 1: you kind of look at benefits um you know out 693 00:39:10,440 --> 00:39:13,760 Speaker 1: there that have passed perhaps three PPP or other things. 694 00:39:14,239 --> 00:39:16,279 Speaker 1: The only point trying to be made here is what 695 00:39:16,320 --> 00:39:19,880 Speaker 1: would that quantum of capital, How would that actually impact 696 00:39:20,239 --> 00:39:24,360 Speaker 1: climate change mitigation and energy independence if we were able 697 00:39:24,640 --> 00:39:28,760 Speaker 1: to allocate that capital to by example, renewable specifically solar. 698 00:39:30,000 --> 00:39:33,399 Speaker 1: So otherwise, how do you scale roof top solar without 699 00:39:33,400 --> 00:39:35,400 Speaker 1: three trillion dollars from the government. How are we going 700 00:39:35,440 --> 00:39:37,719 Speaker 1: to get there? Or is that the only way? We 701 00:39:37,800 --> 00:39:41,200 Speaker 1: get there? Simply through three three main things best product, 702 00:39:41,239 --> 00:39:45,479 Speaker 1: best price, and great service to the customer. So back 703 00:39:45,480 --> 00:39:49,120 Speaker 1: to our model. We specifically focus on distribution channels, provide 704 00:39:49,120 --> 00:39:52,759 Speaker 1: them with the tools to acquire consumers. We automate the 705 00:39:52,880 --> 00:39:55,719 Speaker 1: end to end delivery of solar to the customers home 706 00:39:55,760 --> 00:39:58,040 Speaker 1: and then turn key it and then service it. The 707 00:39:58,120 --> 00:39:59,960 Speaker 1: goal is is that you have such a great experience 708 00:40:00,000 --> 00:40:02,560 Speaker 1: and you're saving monthly uh, saving money on a monthly 709 00:40:02,600 --> 00:40:04,480 Speaker 1: basis that then you want to tell your friends and 710 00:40:04,480 --> 00:40:08,200 Speaker 1: then drive the basically the flywheel effect from there. Uh. 711 00:40:08,200 --> 00:40:10,480 Speaker 1: And we've been doing this for about fourteen years now. 712 00:40:10,560 --> 00:40:13,400 Speaker 1: So We're starting to see the momentum in the price 713 00:40:13,480 --> 00:40:18,440 Speaker 1: draw that can grow total TAN. All right, pau Meado 714 00:40:18,640 --> 00:40:22,719 Speaker 1: CEO Chris Kemper will keep our eye on you Andrew investors, 715 00:40:22,719 --> 00:40:25,279 Speaker 1: of course, thank you. And that does it for this 716 00:40:25,400 --> 00:40:28,400 Speaker 1: edition of Bloomberg Technology. Tomorrow we're gonna be joined by 717 00:40:28,440 --> 00:40:31,880 Speaker 1: Rick Oster Loe Alphabet, Senior vice president of Hardware this 718 00:40:32,000 --> 00:40:36,399 Speaker 1: around Google Io, and Patrick Spence, CEO of Sons. We're 719 00:40:36,440 --> 00:40:39,960 Speaker 1: also watching earnings from Disney and a big announcement coming 720 00:40:40,320 --> 00:40:43,320 Speaker 1: from Airbnb. Don't forget to check out our new podcast. 721 00:40:43,360 --> 00:40:46,160 Speaker 1: You can find it anywhere you get your podcasts. I'm 722 00:40:46,160 --> 00:41:01,080 Speaker 1: Emily checking in San Francisco. This is Bloomberg Ran