WEBVTT - Nvidia Eyes China Expansion, ServiceTitan's Big IPO 0:00:00.080 --> 0:00:10.400 Bloomberg Audio Studios, podcasts, radio news. 0:00:08.680 --> 0:00:12.960 From Bahard, where innovation, money and power coll in Silicon 0:00:13.080 --> 0:00:13.960 Valley NBN. 0:00:14.280 --> 0:00:18.320 This is Bloomberg Technology with Caroline Hyde and Ed lud. 0:00:18.120 --> 0:00:34.800 Love live from New York. This is Bloomberg Technology coming up. 0:00:35.040 --> 0:00:39.560 Adobe drops after a disappointing annual sales outlook as investors 0:00:39.600 --> 0:00:43.839 fear AI startup competition. Our service Titan goes public shares 0:00:43.920 --> 0:00:47.000 indicated to lock it at the open. We speak with 0:00:47.040 --> 0:00:50.600 the software company's co founders and IPO in waiting. Klana 0:00:50.680 --> 0:00:53.880 joins us and the CEO discussing how it's all in 0:00:54.280 --> 0:00:57.520 on AI. For first quick check on these markets. We're 0:00:57.560 --> 0:00:59.880 down three tenths of a percent as we await the 0:01:00.040 --> 0:01:02.240 opening trades in certain IPOs. At the moment, the moon 0:01:02.360 --> 0:01:03.880 music is a little bit lower. We had some of 0:01:03.920 --> 0:01:08.760 those overall inflationary numbers coming from the product size of 0:01:08.760 --> 0:01:10.920 the equation coming in a little bit hotter. Maybe that 0:01:10.959 --> 0:01:13.360 just dampens the spirits, but remember we are so close 0:01:13.400 --> 0:01:15.080 to record highs that we met yesterday. 0:01:15.240 --> 0:01:15.880 Just maybe a bit of. 0:01:15.840 --> 0:01:18.440 Profit taking move on from the nasack to some individual movers, 0:01:18.760 --> 0:01:21.560 and we have got a key points drag in Adobe. 0:01:21.560 --> 0:01:23.240 It is the worst performer when you're looking at. 0:01:23.160 --> 0:01:24.920 The Nasdaq one hundred in terms of dragging us Ler 0:01:25.080 --> 0:01:28.080 some thirteen percent worst day sins back to March when 0:01:28.080 --> 0:01:31.119 it had its underwhelming numbers. Then fast forward to today 0:01:31.160 --> 0:01:33.840 and that after the bell yesterday, they really signaled that 0:01:34.360 --> 0:01:38.040 the AI inflection point isn't there yet. We're still seeing 0:01:38.080 --> 0:01:41.160 revenue coming in and about eleven or thirteen percent the 0:01:41.200 --> 0:01:43.120 guide I'm looking at in video on the downside of 0:01:43.120 --> 0:01:45.440 by one and a half percent. Look, it's interesting that 0:01:45.480 --> 0:01:49.160 it's pushing back against anxiety that maybe it's pulling back 0:01:49.160 --> 0:01:51.680 from China, taking to social media, in fact, the platform 0:01:51.720 --> 0:01:54.720 Wabo to emphasize that the significance of the Chinese market 0:01:54.760 --> 0:01:57.480 is still there despite the US trade curbs and the 0:01:57.480 --> 0:02:00.640 fresh Chinese antitrust investigation. In fact, Bloomberg reporting that the 0:02:00.720 --> 0:02:04.120 chip Giant is expanding its research capabilities in China, adding 0:02:04.200 --> 0:02:07.320 hundreds of staff to focus on autonomous driving technologies. Let's 0:02:07.320 --> 0:02:10.880 bring in roombags, Peter Elstrom, and this is notable. They're 0:02:10.880 --> 0:02:13.960 pushing back against that worry and in fact beefing up 0:02:13.960 --> 0:02:14.360 in China. 0:02:14.400 --> 0:02:17.320 It seems like, yeah, that's exactly right. 0:02:17.400 --> 0:02:17.600 Now. 0:02:17.680 --> 0:02:20.160 There are a lot of crazy rumors online in China, 0:02:20.320 --> 0:02:23.399 just like there are in the United States and elsewhere. 0:02:23.440 --> 0:02:25.920 But this got serious enough that Nvidia felt like they 0:02:25.919 --> 0:02:29.280 had to respond and just clarify. They're continuing to deliver 0:02:29.440 --> 0:02:32.800 products and services into China, and what our sources have 0:02:32.880 --> 0:02:34.920 told us is they're expanding quite a bit in China. 0:02:34.919 --> 0:02:37.520 Of course, the company has been growing by leaps and bounds, 0:02:37.520 --> 0:02:40.119 and they're expanding in many different countries, but what we've 0:02:40.120 --> 0:02:42.760 heard is that in China they're expanding. They should go 0:02:42.880 --> 0:02:45.720 from about three thousand employees at the end of last 0:02:45.760 --> 0:02:47.880 year to about four thousand employees at the end of 0:02:47.919 --> 0:02:50.720 this year. As you alluded to, specifically, they want to 0:02:50.760 --> 0:02:53.640 expand in the autonomous driving area. China, of course, is 0:02:53.639 --> 0:02:55.840 the biggest auto market in the world. It's also very 0:02:55.880 --> 0:02:58.639 important for some of these cutting edge technologies like EV's 0:02:59.000 --> 0:03:03.240 autonomous driving, etc. So Invidia can't sell its most advanced 0:03:03.240 --> 0:03:06.240 AI chips into China, but they do still want to 0:03:06.280 --> 0:03:08.000 invest in the market, and they want to invest in 0:03:08.000 --> 0:03:10.840 some of these growth areas like automobiles, and. 0:03:11.320 --> 0:03:13.639 This has been an ever expanding area of new names 0:03:13.680 --> 0:03:17.800 getting into the EV space over in China. Just what 0:03:17.960 --> 0:03:20.680 are the regulations, is it far easier to be putting 0:03:20.720 --> 0:03:23.160 autonomous driving onto the roads. There's certainly that's something that 0:03:23.200 --> 0:03:24.240 Elon Musk has signaled. 0:03:25.520 --> 0:03:28.160 Yeah, the government certainly has been supportive of some of 0:03:28.160 --> 0:03:31.400 these new technologies. The EV market there is booming. You 0:03:31.400 --> 0:03:35.280 have companies, domestic players like Huawei moving very aggressively into 0:03:35.280 --> 0:03:38.839 this space, providing the kinds of technologies that the car 0:03:38.880 --> 0:03:41.160 companies need to be able to expand in that market. 0:03:41.200 --> 0:03:43.200 So in Vidia wants to be present in that market. 0:03:43.440 --> 0:03:47.720 Also very importantly, they're forging relationships with important companies there. 0:03:47.840 --> 0:03:50.000 They have a presence on the ground. They're expanding their 0:03:50.000 --> 0:03:52.560 headcount as we talked about, to sort of signal that 0:03:52.560 --> 0:03:56.000 they are supporting the Chinese market. They were able to 0:03:56.080 --> 0:03:59.320 sell advanced AI chips in the past. After a couple 0:03:59.320 --> 0:04:01.839 of rounds of X four controls from the Biden administration, 0:04:01.920 --> 0:04:04.200 they had to pull back on selling those most advanced 0:04:04.200 --> 0:04:06.920 AI chips. But Jensen Wong, the CEO, has been quite 0:04:07.000 --> 0:04:08.920 vocal that he'd like to be able to sell as 0:04:09.000 --> 0:04:11.240 much as he can into the market provided that the 0:04:11.280 --> 0:04:14.360 regulations come around. So he's certainly investing in the market 0:04:14.440 --> 0:04:16.279 right now with a view to the long term. 0:04:16.839 --> 0:04:20.960 How good is that from a business perspective when we 0:04:21.080 --> 0:04:24.520 have so much uncertainty weighing over US Chinese relations. 0:04:24.520 --> 0:04:26.359 I mean, we do see well, it. 0:04:26.320 --> 0:04:28.680 Seems as though Trump is extending the honive branch of 0:04:28.760 --> 0:04:31.800 an invitation to Sheed to come over for the inauguration. 0:04:32.040 --> 0:04:34.960 But more broadly, it feels like tit for tap is endless. 0:04:36.520 --> 0:04:38.200 Yeah, it does look like that. When you look at 0:04:38.240 --> 0:04:41.320 the dynamics between Washington and Beijing right now, it does 0:04:41.360 --> 0:04:43.400 not look promising. There's been a lot of tensions in 0:04:43.440 --> 0:04:46.000 the past. Of course, the one thing that the Republicans 0:04:46.040 --> 0:04:48.040 and the Democrats can agree on is that they want 0:04:48.080 --> 0:04:50.440 to get tougher on China. So it seems like it's 0:04:50.480 --> 0:04:53.320 heading in that direction. But remember just ten years ago 0:04:53.400 --> 0:04:56.880 you had companies that were investing in China. The relationship 0:04:56.960 --> 0:04:59.880 between the two countries was very strong. And all the 0:05:00.000 --> 0:05:01.840 these companies want to do is make money. They want 0:05:01.839 --> 0:05:03.360 to invest in the market, and they want to grow 0:05:03.360 --> 0:05:05.840 as much as they can. So I think a company 0:05:05.880 --> 0:05:08.120 like in Video wants to position itself so that it's 0:05:08.160 --> 0:05:11.280 able to capitalize if the market opens up. Right now again, 0:05:11.360 --> 0:05:13.720 it gets about fifteen percent of its revenue from China, 0:05:13.800 --> 0:05:16.360 so it's not small, but they can't sell their highest 0:05:16.440 --> 0:05:19.120 end chips, their most profitable chips right now. Instead they're 0:05:19.120 --> 0:05:23.120 selling those into the hyperscalers like Microsoft and open Ai, 0:05:23.320 --> 0:05:26.360 Google and Amazon. But long term they'd like to be 0:05:26.440 --> 0:05:28.080 able to sell as many of them as they can, 0:05:28.120 --> 0:05:29.560 that includes the Chinese market. 0:05:29.960 --> 0:05:32.880 He's astron, thanks so much for the breakdown. Let's just 0:05:32.920 --> 0:05:35.200 stick a little bit more with China because it has 0:05:35.240 --> 0:05:36.840 been signaling further stimulus measures. 0:05:36.839 --> 0:05:38.159 We're including raising the. 0:05:38.120 --> 0:05:40.520 Budget deficit ratio in twenty twenty five. All of this 0:05:40.560 --> 0:05:43.360 is about maintaining economic growth, some sort of stability that 0:05:43.680 --> 0:05:46.760 the market has been doubting of late. Let's discuss us 0:05:46.960 --> 0:05:50.520 China and indeed the economic outlook there. Empower Chief investment 0:05:50.720 --> 0:05:53.159 Strategists Martin Norton is here with us, and what's so 0:05:53.279 --> 0:05:56.880 interesting is your view on valuations in China, opportunities to 0:05:56.880 --> 0:05:59.000 be investing in China in this context? 0:05:59.080 --> 0:06:00.680 Is it right for investment? 0:06:01.839 --> 0:06:05.719 Well, it's a critical question here. Really, the argument for 0:06:05.920 --> 0:06:10.279 China and China big tech in particular, is a valuation argument. 0:06:10.360 --> 0:06:12.599 When you take a look at big tech and the 0:06:12.640 --> 0:06:16.720 types of companies that you have there, very strong competitors, 0:06:16.960 --> 0:06:21.520 very strong balance sheets, shareholder friendliness, strong earnings, and very 0:06:21.600 --> 0:06:24.760 low valuations. In a world in search of low valuations, 0:06:25.080 --> 0:06:27.560 that's attractive. But of course you don't get those low 0:06:27.640 --> 0:06:31.799 valuations without some headwinds and or headwinds galore in China. 0:06:31.839 --> 0:06:33.640 And of course that's on the geopolitical fund, but it's 0:06:33.640 --> 0:06:35.599 also on the economic front, whether you're looking at the 0:06:35.640 --> 0:06:39.800 property considerations or just looking at consumer demands. So there 0:06:39.880 --> 0:06:42.280 are a lot of considerations that I think would give 0:06:42.320 --> 0:06:46.000 investors pause. The upside is that there's a margin of 0:06:46.000 --> 0:06:48.560 safety that can cover that. So we wouldn't suggest that 0:06:48.600 --> 0:06:51.799 investors pile all their assets into China, but we would 0:06:51.920 --> 0:06:55.480 argue that the valuation opportunities can calling enough that maybe 0:06:55.520 --> 0:06:57.039 some exposure would make sense. 0:06:57.680 --> 0:07:00.440 Well, then you compare and contrast to the valuation lack 0:07:00.480 --> 0:07:02.839 of opportunity here in the US, I'm looking at a 0:07:02.960 --> 0:07:07.320 Nvidia trading at forty seven times let's call it future earnings. 0:07:07.480 --> 0:07:10.440 We've got a three point three trillion dollar market cap. 0:07:10.640 --> 0:07:13.160 The margin for error, they're very, very small when you're 0:07:13.200 --> 0:07:13.960 considering China. 0:07:14.840 --> 0:07:16.200 That's I mean, that's exactly right. 0:07:16.240 --> 0:07:18.600 So what you have in the US is kind of 0:07:18.680 --> 0:07:21.960 a a yin yang with what you see in China. 0:07:22.040 --> 0:07:25.080 So of course you have very fundamentally strong companies, you 0:07:25.160 --> 0:07:28.200 have a strong economy, and you have some potential you know, 0:07:28.240 --> 0:07:31.080 geopolitical concerns, but nowhere near what you're seeing in China. 0:07:31.160 --> 0:07:32.560 And yet the valuation. 0:07:32.240 --> 0:07:34.160 Argument isn't there. So if we're taking a look just 0:07:34.240 --> 0:07:36.560 over the course of twenty twenty four and we're looking 0:07:36.600 --> 0:07:39.440 at the mag seven, we saw a price to estimated 0:07:39.480 --> 0:07:41.520 earnings at the start of the year of around thirty five, 0:07:41.560 --> 0:07:44.600 and to date it's around forty. That's not extreme, it's 0:07:44.600 --> 0:07:46.600 not at the extreme levels that we've seen over the 0:07:46.640 --> 0:07:49.680 past five years, but it's certainly above that five year average, 0:07:49.760 --> 0:07:51.880 and it just means that it's going to take a 0:07:51.920 --> 0:07:55.280 lot more to supplies investors on the upside for there 0:07:55.360 --> 0:07:57.440 to be a positive reaction, and we've seen that over 0:07:57.480 --> 0:07:59.960 the course of this year, most notably in the summer 0:08:00.160 --> 0:08:04.200 when in Video largely beat expectations, but the market's sold off. 0:08:04.480 --> 0:08:05.400 So I think that just. 0:08:05.440 --> 0:08:09.520 Takes a lot of maybe the access return feel out 0:08:09.520 --> 0:08:10.320 of these names. 0:08:10.880 --> 0:08:12.440 Look at Adobe case in point. 0:08:12.440 --> 0:08:15.160 Today they managed to deliver on this fiscal quarter, but 0:08:15.200 --> 0:08:17.640 the forward looking forecast not living up to expectations and 0:08:17.680 --> 0:08:21.480 it's drags significantly lower. I'm interested in the Alphabet managing 0:08:21.520 --> 0:08:22.600 to reach the new heights. 0:08:22.600 --> 0:08:24.480 I don't want to go so much into individual names, 0:08:24.520 --> 0:08:25.360 but from an. 0:08:25.320 --> 0:08:28.000 Anti trust perspective, all were putting that to the backside. 0:08:28.000 --> 0:08:30.040 Are we not worried so much about the power the 0:08:30.080 --> 0:08:31.600 domination of these Max sevens. 0:08:32.280 --> 0:08:36.200 Well, it's an interesting question because the antitrust and really 0:08:36.200 --> 0:08:40.319 the regulation considerations around big tech have been something of 0:08:40.360 --> 0:08:42.960 an overhang for these companies for quite some time, and 0:08:43.040 --> 0:08:45.120 now we're starting to see that come to the four 0:08:45.280 --> 0:08:47.640 a bit more. I think when we're taking a look 0:08:47.679 --> 0:08:50.880 at Alphabet and we're looking at some of these considerations 0:08:50.880 --> 0:08:53.800 on the regulation or anti trust funt in particular, there 0:08:53.800 --> 0:08:57.160 are still some unknown, some challenges that will come about, 0:08:57.200 --> 0:09:01.000 you know, as these companies kind of navigate exactly how 0:09:01.200 --> 0:09:03.760 you know they're going to play out with the antitrust 0:09:03.760 --> 0:09:06.360 and what steps they're going to actually take. I don't 0:09:06.400 --> 0:09:09.800 think that's necessarily clear, And in the meantime, we still 0:09:09.840 --> 0:09:13.520 have a very strong, fundamentally healthy company that looks to, 0:09:14.280 --> 0:09:16.840 you know, accelerate some of the opportunities from AI. 0:09:17.559 --> 0:09:18.760 Look, you're helping. 0:09:18.520 --> 0:09:21.640 Oversee fifty seven billion dollars in assets under management Malta. 0:09:21.720 --> 0:09:25.520 I'm interested therefore, where you do see the risk reward 0:09:25.679 --> 0:09:28.920 right right now? Is it about diversifying broadening out from 0:09:28.960 --> 0:09:30.040 MAG seven at this moment? 0:09:30.920 --> 0:09:32.800 Well, listen, I mean, I think it's hard to step 0:09:32.800 --> 0:09:36.920 away from MAG seven most obviously because it represents such 0:09:36.960 --> 0:09:39.000 a large part of the overall market a third of 0:09:39.040 --> 0:09:41.120 every dollar and the S and P five hundred is 0:09:41.160 --> 0:09:44.000 going to these names, so hard to diversify away from 0:09:44.000 --> 0:09:46.640 them completely. And yet at the same time they're all 0:09:46.720 --> 0:09:49.280 really keying off AI and as we've talked about, there 0:09:49.320 --> 0:09:51.680 isn't as much margin of safety. So as we head 0:09:51.679 --> 0:09:56.400 into twenty twenty five, our outlook cause for balance over conviction, 0:09:56.600 --> 0:09:58.440 and the way to play that, we think is maybe 0:09:58.440 --> 0:10:00.680 to have just kind of a modest underwe to some 0:10:00.720 --> 0:10:02.840 of these maxim and names or you know, the biggest 0:10:02.880 --> 0:10:05.600 companies in the market cap, and then add in some 0:10:05.640 --> 0:10:08.440 of these small cap areas that have more relative value 0:10:08.520 --> 0:10:11.200 in their corner and also have some tail ones. When 0:10:11.200 --> 0:10:13.719 we start to think about Trump tax policy or when 0:10:13.720 --> 0:10:16.640 we're thinking about potentially lower rates over the course of 0:10:16.720 --> 0:10:17.120 the next. 0:10:17.080 --> 0:10:21.480 Year, and you mentioned rates, wherein what ultimately the stacks 0:10:21.480 --> 0:10:24.080 should you be From an asset class perspective, Is it 0:10:24.120 --> 0:10:27.000 all about equities? Is it worth going into the credit 0:10:27.160 --> 0:10:28.719 side of these tech names? 0:10:29.240 --> 0:10:32.240 Well, it's interesting. I think when we're taking a look 0:10:32.320 --> 0:10:35.280 at where rates are headed, the expectation earlier in the 0:10:35.360 --> 0:10:37.800 year was that we were going to see potentially, you know, 0:10:38.000 --> 0:10:41.040 falling rates in a meaningful fashion over the next you know, 0:10:41.280 --> 0:10:43.920 we call it twelve months. But as the economy has 0:10:43.920 --> 0:10:46.120 come in a lot stronger, and as the market grapples 0:10:46.120 --> 0:10:48.800 with what Trump policies might look like, I think the 0:10:48.840 --> 0:10:51.080 expectation is still there for lower rates, but maybe not 0:10:51.600 --> 0:10:54.360 quite to the same degree as people had thought previously. 0:10:54.440 --> 0:10:56.920 So when we're looking at the fixed income versus equity trade, 0:10:56.960 --> 0:10:59.280 I mean, yields are very attractive, but we're seeing this 0:10:59.320 --> 0:11:01.480 as more of a croup clipping year and less of 0:11:01.520 --> 0:11:05.080 a total return year in fift income. We're actually expecting 0:11:05.120 --> 0:11:07.760 lower more matter re terms on the equity side too, 0:11:07.800 --> 0:11:10.040 so in the sense of and you know, kind of 0:11:10.040 --> 0:11:12.000 returning to that femal balance we call it for a 0:11:12.080 --> 0:11:14.959 year for balance. On an athic class perspective as well. 0:11:15.320 --> 0:11:17.920 What you're not expecting another one hundred percent increase on 0:11:18.040 --> 0:11:20.600 NVIVIA for the year. Martin Norson, It's so good to 0:11:20.640 --> 0:11:30.520 have time with you, empowered chief investment strategist, appreciate it. 0:11:32.080 --> 0:11:34.600 Home service software Business Service Titan hits. 0:11:34.360 --> 0:11:37.240 The public markets what could be the last major USIP 0:11:37.360 --> 0:11:38.240 of twenty twenty four. 0:11:38.280 --> 0:11:40.280 Shares indicated to jump. 0:11:40.000 --> 0:11:42.679 To one hundred and nine dollars after they were priced 0:11:42.679 --> 0:11:45.800 at seventy one dollars. Service Titan CEO Are Medesian's with 0:11:45.880 --> 0:11:47.920 us President Vahey Kazoo and is with us as well. 0:11:47.920 --> 0:11:49.240 They are joining us in the NASDAC. 0:11:49.640 --> 0:11:52.320 I mean, the indications are for a whopping jump in 0:11:52.360 --> 0:11:53.120 the share price. 0:11:53.520 --> 0:11:53.840 Aarrah. 0:11:54.040 --> 0:11:55.160 How do you feel on this day? 0:11:56.400 --> 0:11:59.000 We're very excited for this date. It's an important day 0:11:59.160 --> 0:12:02.240 for a company, but more importantly, this is a historic 0:12:02.320 --> 0:12:05.280 day for the incredible industry that we serve. We think 0:12:05.280 --> 0:12:08.280 of this as the National Day of the Trades, and 0:12:08.320 --> 0:12:11.240 we celebrate and honor all the hard work and soult 0:12:11.280 --> 0:12:14.200 of the earth contractors that work so tireless see to 0:12:14.280 --> 0:12:15.319 serve their communities. 0:12:15.760 --> 0:12:17.840 By I mean, this is a personal story. Both of 0:12:17.880 --> 0:12:20.679 you had fathers, immigrant fathers. 0:12:20.320 --> 0:12:24.320 Coming into the nicest states as contractors. As pommers, you're 0:12:24.320 --> 0:12:27.439 solving their problems. How differentiated is you're offering from a 0:12:27.480 --> 0:12:28.559 technology perspective. 0:12:29.600 --> 0:12:31.600 Well, we like to think that we provide a business 0:12:31.640 --> 0:12:33.880 in a box that provides an end to end solution 0:12:34.160 --> 0:12:37.199 that gives you anything you need to run a successful 0:12:37.200 --> 0:12:40.320 trades business. And when we saw growing up, we saw 0:12:40.360 --> 0:12:43.319 the struggle that our parents had running the back office 0:12:44.160 --> 0:12:46.400 shoe boxes full of receipts, we knew we had to 0:12:46.400 --> 0:12:49.480 do something. And so that's our big differentiation is it's 0:12:49.520 --> 0:12:52.440 an all in one, all under one roof solution. 0:12:52.320 --> 0:12:53.200 For this industry. 0:12:53.360 --> 0:12:55.480 We can see the team based behind you. You're serving 0:12:55.559 --> 0:12:59.280 one hundred thousand plus contractors. We can now see that 0:12:59.320 --> 0:13:02.000 you've got about US seven billion dollar valuation when you 0:13:02.040 --> 0:13:04.559 were pricing, it's going to be more than that at 0:13:04.600 --> 0:13:07.680 the open Arah, Is there a concern that you left 0:13:07.679 --> 0:13:09.360 money on the table that you could have raised more 0:13:09.400 --> 0:13:11.000 than six hundred and twenty five million. 0:13:12.280 --> 0:13:14.760 What we're focused on are things that we can control. 0:13:14.960 --> 0:13:18.160 Most importantly, that's taking care of our customers, delivering success 0:13:18.200 --> 0:13:21.240 for them, and that happens to actually drive our own 0:13:21.240 --> 0:13:24.960 financial success. For us, this is our life's work. We've 0:13:25.160 --> 0:13:28.080 put over a decade into building this business. We think 0:13:28.080 --> 0:13:31.360 about this business for years and decades to come, and 0:13:31.400 --> 0:13:33.880 we're just excited for this next chapter in our journey 0:13:33.880 --> 0:13:36.720 where we get to partner with long term investors who 0:13:36.720 --> 0:13:38.240 want to support that journey with us. 0:13:38.800 --> 0:13:42.320 Ba Hey, what is in control is your control of 0:13:42.360 --> 0:13:45.839 the companies? You remain basically majority shareholders from a voting 0:13:45.880 --> 0:13:48.480 perspective with a class B by Hey, Therefore, what do 0:13:48.520 --> 0:13:50.400 you allocate this money raised into? 0:13:50.559 --> 0:13:52.840 Where do you push to expan the business? 0:13:54.040 --> 0:13:54.280 Sure? 0:13:54.360 --> 0:13:56.600 So, our mission is to build the operating system for 0:13:56.600 --> 0:14:00.240 the trades, and that's our number one priority. The that 0:14:00.280 --> 0:14:04.680 we're raising today is going to go towards primarily continue 0:14:04.720 --> 0:14:08.080 to evolve the product and making sure that this industry 0:14:08.160 --> 0:14:11.319 is not left behind from a technology perspective like our 0:14:11.320 --> 0:14:12.679 parents were. We're growing up. 0:14:13.280 --> 0:14:16.920 Okay Ara, just spell out what technological innovation you can 0:14:16.960 --> 0:14:21.160 now present and then forward plans. I mean, how does 0:14:21.200 --> 0:14:23.840 this innovate? Is it about talent you bring on? Is 0:14:23.880 --> 0:14:26.760 about integrating general Todai? Where does the product go from here? 0:14:27.920 --> 0:14:31.000 It's interesting that you mentioned Ai. I think it's a 0:14:31.080 --> 0:14:35.760 little bit almost ironic that such a blue collar industry 0:14:35.920 --> 0:14:40.200 has such big applications for AI, and this is not hype, 0:14:40.320 --> 0:14:44.400 this is already reality today. Service Titan already offers three 0:14:44.480 --> 0:14:48.800 AI based products for things like optimizing how contractors do marketing, 0:14:49.200 --> 0:14:52.560 optimizing and automating how they do scheduling and dispatching, and 0:14:52.640 --> 0:14:55.840 ultimately also improving the level of service that they provide 0:14:55.960 --> 0:14:59.640 their own customers that our customers, the contractors are already 0:14:59.680 --> 0:15:01.080 adopt in utilizing. 0:15:01.720 --> 0:15:04.880 The team is having fun behind you. It's good to see. 0:15:05.160 --> 0:15:08.200 I'm interested in you said these long term investors that 0:15:08.240 --> 0:15:10.920 you're now going to have the institutional investors come on board, 0:15:10.960 --> 0:15:14.400 but a lot of people keep the overall exposure. What 0:15:14.520 --> 0:15:17.280 happens with iconic growth, what happens with some of the 0:15:17.280 --> 0:15:18.560 best ser ventures. 0:15:18.160 --> 0:15:19.000 In the TPGs. 0:15:19.040 --> 0:15:21.920 Do you think that this is them exiting more fully? 0:15:22.280 --> 0:15:24.840 How do you see your investor base changing? 0:15:26.320 --> 0:15:28.240 Yeah, I mean you have to ask them. As far 0:15:28.280 --> 0:15:31.440 as we're concerned, we're focused on the mission and bringing 0:15:31.480 --> 0:15:35.880 on a new family of long term shareholders that we 0:15:36.000 --> 0:15:38.800 hope to deliver a similar level of success as we 0:15:38.840 --> 0:15:41.920 did our original batch that believed in this. We take 0:15:42.200 --> 0:15:46.800 the trust very seriously and we intend to be great 0:15:46.840 --> 0:15:49.600 stewards of their capital as we deploy it to create 0:15:50.320 --> 0:15:53.520 more opportunities for our customers. 0:15:53.560 --> 0:15:55.880 I'm going to go a slightly different direction here, but 0:15:56.400 --> 0:16:00.000 you are from parents of immigrants. You're thinking about service, 0:16:00.000 --> 0:16:02.640 seeing the contractors out there in the United States, what 0:16:02.680 --> 0:16:05.320 does your client base look like in the next administration 0:16:05.560 --> 0:16:06.520 in twenty twenty five. 0:16:09.000 --> 0:16:13.080 You know, our customers have thankfully thrived through all kinds 0:16:13.120 --> 0:16:17.080 of macroeconomic situations, through all kinds of administrations, and it's 0:16:17.120 --> 0:16:20.400 simply because the work that they do is so critical. 0:16:20.480 --> 0:16:23.880 It's so essential. When your air conditioning isn't working in 0:16:24.000 --> 0:16:26.920 scorching summer heat wave, or your heater goes out in 0:16:27.000 --> 0:16:29.800 dead of winter, or your plumbing breaks down right before 0:16:29.840 --> 0:16:33.120 your Thanksgiving family gathering, you have to get that fixed, 0:16:33.120 --> 0:16:35.920 and get that fixed immediately. And our customers are those 0:16:36.000 --> 0:16:39.200 unsung heroes that often fly across town, sometimes in the 0:16:39.200 --> 0:16:41.760 middle of the night, to take care of the communities 0:16:41.800 --> 0:16:42.360 that they serve. 0:16:43.440 --> 0:16:47.120 Who's been serving you in this ibo are Goldman, Sachs, 0:16:47.160 --> 0:16:49.960 Woman Stanley Wells, Fargo City Group, ten other banks have 0:16:50.000 --> 0:16:52.800 been working on the deal. I ask a tough question, Vaje. 0:16:52.960 --> 0:16:56.000 But if your shares do pop by at one point 0:16:56.040 --> 0:16:57.880 indicated more than one hundred percent higher. 0:16:58.200 --> 0:16:59.440 Do you think they've done a good job or a 0:16:59.440 --> 0:16:59.880 bad job. 0:17:01.160 --> 0:17:03.960 We've been incredibly grateful to the partners that we've had 0:17:04.000 --> 0:17:06.800 throughout this process. As you know, this is our first 0:17:06.800 --> 0:17:09.160 time doing this and so having people that we trust 0:17:09.160 --> 0:17:11.639 around the table shepherding us through the process has been 0:17:12.000 --> 0:17:14.960 really great. And for us, it doesn't really matter where 0:17:14.960 --> 0:17:17.280 the price ends today. We're focused on the long term 0:17:17.320 --> 0:17:19.879 and we really care about is building a generational business. 0:17:20.480 --> 0:17:23.600 At the moment, the business is loss making, so Ara, 0:17:24.080 --> 0:17:26.240 that going to change into twenty twenty five. 0:17:27.119 --> 0:17:31.480 We're grateful to be cashful positive and have been cashful 0:17:31.520 --> 0:17:34.320 positive for the several past quarters, and that puts us 0:17:34.359 --> 0:17:37.240 in control of our destiny and that's what allows us 0:17:37.280 --> 0:17:40.480 to continue to invest in the success of our customers, 0:17:40.520 --> 0:17:43.720 which is what's ultimately going to drive our own success. 0:17:44.119 --> 0:17:46.199 The same thing that has gotten to this point is 0:17:46.200 --> 0:17:48.520 the same thing that is going to get us towards 0:17:48.520 --> 0:17:50.840 this mission of building the operating system for the trades. 0:17:51.680 --> 0:17:54.240 Come back as you continue to service there and see 0:17:54.240 --> 0:17:56.920 the growth Service Titan CEO, Ara Medessi, and it's great 0:17:56.920 --> 0:17:59.120 to speak with you, President of our Hey Kazuyan, thank 0:17:59.119 --> 0:18:01.439 you very much, indeed of you as we await that 0:18:01.520 --> 0:18:04.720 first opening trade. Meanwhile, Meta got to talk about its 0:18:04.720 --> 0:18:07.560 donation one million dollars to Donald Trump's inaugural fund. We'll 0:18:07.560 --> 0:18:08.360 bringing the details. 0:18:08.520 --> 0:18:12.959 This is Bloomberg Technology. 0:18:18.800 --> 0:18:23.000 Google Samsung just unveiling a joint push into mixed reality, 0:18:23.160 --> 0:18:26.679 introducing a headset and glasses version of Android in a 0:18:26.680 --> 0:18:28.879 bid to rival Apple and Meta in that space. 0:18:29.000 --> 0:18:31.160 Now, the new Android will allow a range of. 0:18:31.119 --> 0:18:34.440 Companies to design their own extended reality devices, both headsets 0:18:34.480 --> 0:18:38.080 and lightweight glasses, while also taking advantage of the latest 0:18:38.320 --> 0:18:43.880 AI advances too. Meanwhile, China's Instagram style app Sha Hongshu 0:18:44.240 --> 0:18:46.199 is on track to double profits to more than a 0:18:46.200 --> 0:18:49.040 billion dollars in twenty twenty four, ahead of the potential IPO. Then, 0:18:49.080 --> 0:18:52.040 the app took off among younger Chinese during the pandemic 0:18:52.040 --> 0:18:55.080 and experienced wrapping growth, partly at the expense of e 0:18:55.119 --> 0:18:57.840 commerce leaders Ali Baba and JD dot Com. And as 0:18:57.880 --> 0:18:59.879 we talk about a Chinese rival to Instagram, let's bring 0:18:59.920 --> 0:19:02.639 it home to Meta here because it's just donated one 0:19:02.640 --> 0:19:05.439 million dollars to President elect Donald Trump's inorgal fund. It's 0:19:05.480 --> 0:19:07.720 part of an effort it seems to build a positive 0:19:07.760 --> 0:19:10.720 relationship with the administration after pretty tense history. I mean 0:19:10.760 --> 0:19:13.359 Mertz Kurt Wagner joins us now. First of all, only 0:19:13.400 --> 0:19:16.560 one million, This is but a drop in the bucket. 0:19:16.200 --> 0:19:18.760 Of what Meta could afford. But it's a signal. 0:19:18.440 --> 0:19:22.000 Here, right, This is symbolic. Right, This is not about 0:19:22.040 --> 0:19:25.080 the number of dollars that are going to this fund. 0:19:25.320 --> 0:19:28.600