Speaker 1: From Marhard. We're Innovation, Money and Power Collie in Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Love Love.
Speaker 3: I'm Caroline Heinderlumberg's world headquarters in New York and I
Speaker 3: met Ludlow in San Francisco.
Speaker 4: This is Bloomberg Technology coming up.
Speaker 5: Full earnings coverage ahead.
Speaker 3: We've got Qualcom, the ches popping after chip maker is
Speaker 3: providing an upbeat forecast, singing the mobile phone slump.
Speaker 4: It's easing and sticking with smartphones. We'll push your head
Speaker 4: to earnings from Apple, which a duo to come out
Speaker 4: after the bell today.
Speaker 3: And we'll have the latest in the trial of Sam
Speaker 3: Magunfried as Jura's begin deliberations today.
Speaker 5: But first, let's check in on these markets and.
Speaker 3: The feel good music after the Federal Reserve and that
Speaker 3: feeling that the Fed is basically perhaps done with the
Speaker 3: real fast and few pace of rate heights really dials
Speaker 3: into a desire to buy these stocks in the particularly
Speaker 3: in the tech space. We're up five straight days on then,
Speaker 3: now's that one hundred best winning streets since we sinceince
Speaker 3: about August of last year.
Speaker 5: And indeed we're seeing.
Speaker 3: S and P five hundred having its best day since
Speaker 3: August on the day, so overall at one point three percent.
Speaker 3: We're seeing All country World Index basically European stocks pushed higher,
Speaker 3: so tooed in Asia we're having our best day in
Speaker 3: one months, it would seen. We're up one point six percent,
Speaker 3: best day on the All Country World Index since the
Speaker 3: beginning of the year. And I'm looking at the US
Speaker 3: thirty year as we see that sort of desire to
Speaker 3: be buying into bond markets because yields are likely falling
Speaker 3: because maybe the Federal Reserve doesn't have to keep on
Speaker 3: hiking into this particular macro economy. We're down some nine
Speaker 3: basis points on the longer end. We were down much
Speaker 3: further earlier on today, And love quick look at what's
Speaker 3: happening in the world of crypto, because this is.
Speaker 5: An interesting one.
Speaker 3: The dollar is down because we're not anticipating such a
Speaker 3: hawkish FED, but those bitcoins, so that just shows that
Speaker 3: there's really some pulling away from this particular risk asset.
Speaker 3: At the moment, we're off by some two percent, so
Speaker 3: thirty four thousand still heading above that all important sort
Speaker 3: of thirty four thousand dollars level, but notable that we've
Speaker 3: got a little bit of caution in that particular space.
Speaker 5: What are you looking at in the micro.
Speaker 4: There are many many technology earnings to pass over, and
Speaker 4: the first is Peloton interesting because they gave a guidance
Speaker 4: for revenue for the rest of the year there was
Speaker 4: pretty weak. They're having trouble converting free users of their
Speaker 4: app into paid subscribers. They were really down after Earning's hit.
Speaker 4: Now they're up significantly eleven percent. Growth is coming, they
Speaker 4: say in the market, clearly buying it another p Palenteer
Speaker 4: also upgrading its profit outlook for the full year twenty three,
Speaker 4: also slightly upgrading its revenue expectations. The story AI Palenteer's
Speaker 4: and AI sorry you and I've hit all year long.
Speaker 4: Now the financials are starting to show that four straight
Speaker 4: quarter of profit also up eighteen percent. Then after market
Speaker 4: we get Apple. We know what's coming. Four straight quarter
Speaker 4: of sales declined. You have to go about two decades
Speaker 4: for Apple to have a slump like that. But we
Speaker 4: get some insight into how the iPhone fifteen is doing,
Speaker 4: so we get about nine days worth of sales in
Speaker 4: that September quarter. The main one I'm looking at right
Speaker 4: now is quite forecast for the current period of revenue
Speaker 4: nine point one to nine point nine billion dollars a
Speaker 4: big range, but at the midpoint of that range you're
Speaker 4: well above analyst expectations. Is for sales. The thinking it
Speaker 4: signals that things were recovering in the smartphone market. So
Speaker 4: let's get more on that cloud coom story and bring
Speaker 4: in congen Sibani or Bloomberg intelligence. That's the guidance. What
Speaker 4: do you read into that congent about the smartphone market globally?
Speaker 6: Thanks Ed, I mean, coming into the quarter, it was
Speaker 6: pretty clear that the smartt phone market had hit its bottom.
Speaker 6: Customers have been clearing out inventory for a few weeks now,
Speaker 6: but what was not clear was what to expect in
Speaker 6: terms of the speed and size of the market snapback,
Speaker 6: especially in the Android market in China, which is sort
Speaker 6: of which was sort of holding back the start of
Speaker 6: the recovery for Qualcom, and there was this build up
Speaker 6: anxiety around if we are going to have brace for
Speaker 6: another disappointment. So it was a sile of relief to
Speaker 6: see signs of green shoots over there, especially from their
Speaker 6: better one Q guidance and a couple of data points
Speaker 6: to valid it was the twenty five percent sequential revenue
Speaker 6: growth from the Chinese Android OEMs, and them confirming that
Speaker 6: they will keep the majority share at Samsung twenty four launch.
Speaker 3: All of this, though, is at a time where Christiana
Speaker 3: Armon is trying to diversify away from really the all
Speaker 3: in on the mobile space.
Speaker 5: How is that working?
Speaker 3: How is that bearing fruit when you're looking at connected devices,
Speaker 3: when you're looking at automotive for example.
Speaker 1: Look, the a PC is really a call option for them.
Speaker 6: Specifically in terms of street estimates, the numbers right now
Speaker 6: don't even attribute much revenue coming from this business, and
Speaker 6: even by Qualcom's own commentary, they don't expect PC revenue
Speaker 6: to start contributing significantly under twenty twenty five. So the
Speaker 6: discussion right now around PC is more related to adding
Speaker 6: to the sentiment around this rather than the fundamentals.
Speaker 1: The good thing for them, though, is if they have any.
Speaker 6: Success, no matter what the size, it will all be
Speaker 6: upside from the current numbers.
Speaker 4: Can general want to take into some of your analysis
Speaker 4: you published last night that's about China. The landscape for
Speaker 4: smartphones in China has changed in terms of where the
Speaker 4: chips are coming from and also planning for the future.
Speaker 4: Based on what Qualcom told us, what do you read
Speaker 4: into the Chinese market for that name?
Speaker 6: Yeah, I mean again, like I said, it was the
Speaker 6: one thing that was holding back the strong recovery like
Speaker 6: we're seeing in PCs versus not seeing in smartphone. So
Speaker 6: there is good signs that the Chinese android OEMs are
Speaker 6: now pulling in and building on that inventory.
Speaker 1: So that's good for Qualcomm.
Speaker 6: The other factor there is the uncertainty about Huave possibly
Speaker 6: gaining share, So we still have to wait and see
Speaker 6: how this plays out. But right now with them getting
Speaker 6: Apple back and again getting a lot more content and
Speaker 6: Android OEMs, as long as this market keeps coming back,
Speaker 6: it's going to be a double tail wind for Qualcomm.
Speaker 3: Conjohn Savani and we thank you so much for Blue
Speaker 3: meg Intelligence and all things Qualcom and indeed China. Perfect
Speaker 3: segue there for in to our next discussion because he
Speaker 3: just mentioned Apple there, he mentioned Huawei. That's talking about
Speaker 3: Apple's reporting results after the battle. Well, he hate to
Speaker 3: walk us through what to expect is Bloomberg's Mark German
Speaker 3: and Mark a lot of people anticipating that China is
Speaker 3: going to play a big role in this set of numbers.
Speaker 1: I want to really focus in.
Speaker 7: I wish we had a replay of something Kunjan said
Speaker 7: when he first started the discussion. He noted that the
Speaker 7: Qualcom expectation for sales from Chinese handset makers our way up.
Speaker 1: I was preparing for Apple earning yesterday.
Speaker 7: And a headlined cross on the terminal during the pual
Speaker 7: foam RaaS that said, Chinese phonemaker sales connected to Qualcom
Speaker 7: are anticipated to be up a third in the current
Speaker 7: quarter where they were just up a third. That's good
Speaker 7: news for Qualcomb if you think about it, that's not
Speaker 7: very good news for Apple. To answer your question, obviously,
Speaker 7: Qualcomm makes a lot of the CPUs and chips that
Speaker 7: go into Android phones, a lot of the ones developed
Speaker 7: by Chinese manufacturers.
Speaker 1: But Apple makes their own chips. Right, If Qualtcom sales are.
Speaker 7: Going way up in China the handset makers there, something's
Speaker 7: got to give, right, So that answer here's your question.
Speaker 7: I think about what's going on with Apple in China.
Speaker 7: We may be in for a little bit of a
Speaker 7: dip there because Hawkom is taking share from somewhere, right,
Speaker 7: So I think that's something to look out for.
Speaker 1: For sure.
Speaker 4: There's the financials backward looking at what happened in the
Speaker 4: fiscal court had just gone and then you listen to
Speaker 4: what Tim Cook and Eddie Q will say about the future.
Speaker 4: The iPhone fifteen went on sale September twenty second, Right,
Speaker 4: that gives about nine days of sales in the quarter
Speaker 4: that they'll book. But in that time they've raised services prices.
Speaker 4: We had all those details on the next generation Mac
Speaker 4: and M three chips. What moves the needle mark outside
Speaker 4: of iPhone towards the end of the year and into
Speaker 4: twenty four.
Speaker 1: Yeah, I think it's wearables.
Speaker 7: I think it's stocking stoppers potentially like the lower end
Speaker 7: Apple watches in the AirPods.
Speaker 1: I think that is going to probably.
Speaker 7: Result in a lot of the momentum you're going to
Speaker 7: see from Apple in the holiday quarter. Obviously, the iPhone
Speaker 7: fifteen pro is going to do exceptionally well. You know,
Speaker 7: Apple has a pretty easy cart for the iPhone fifteen, Right,
Speaker 7: this is a redesigned phone, titanium, that new look, that
Speaker 7: new material, that new three and animator chip. That's what
Speaker 7: sells consumers. And the good news for Apple is it
Speaker 7: doesn't seem that they have any major production hiccups this
Speaker 7: time around last year you had a minor iPhone update
Speaker 7: with the iPhone fourteen, right, you had major shipment delays
Speaker 7: and major shipment constraints that you don't have this year.
Speaker 7: So you should see some nice growth on the iPhone
Speaker 7: despite the situation potentially occurring in China. So I'm looking
Speaker 7: for positivity for sure on the iPhone. In fact, if
Speaker 7: you look at Wall Street expectations for the previous quarter,
Speaker 7: the iPhone is one of the only business from Apple
Speaker 7: that we're expecting growth in the other two and this
Speaker 7: is very surprising given everything.
Speaker 1: We just discussed. Is Greater China.
Speaker 7: Wall Street is anticipating two billion dollars of year over
Speaker 7: year growth in the China business, right, going from about
Speaker 7: fifteen billion and change to about seventeen billion in just
Speaker 7: that Greater China region. So you know, it appears even
Speaker 7: if the iPhone does slow down in China, they're they're
Speaker 7: going to make up for the iPhone sales and other regions,
Speaker 7: and they're going to make up for.
Speaker 1: The iPhone China with other products.
Speaker 7: The Apple Watch is certainly growing in popularity in China.
Speaker 7: It's become a really big deal there. Even the Mac right,
Speaker 7: these higher priced, more luxurious Macs those are becoming bigger
Speaker 7: sellers in China. So no matter what's happening to the iPhone,
Speaker 7: I think based on what Wall Street is saying that
Speaker 7: they are going to make.
Speaker 8: Up for it.
Speaker 3: So we want to thank you Marghum and all things
Speaker 3: Apple as we anticipate those numbers off the bell. I
Speaker 3: mean while coming up, Look, Canadian e commerce firm Shopify
Speaker 3: talking earning there two beating estimates for the third quarter.
Speaker 5: Shares they rally hard.
Speaker 3: A conversation with the president Harley Finkelstein, that's coming up next.
Speaker 3: This is Bluemberg technology, discipline, cost cutting, that's just one
Speaker 3: of the factors that helps Shopify see positive results in
Speaker 3: their third quarter. The Canadian based e commerce platform shop
Speaker 3: says it's report showcase the durability of its business model, revenue,
Speaker 3: earnings per share, they beat estimates and then some joining
Speaker 3: us now on how the strategy is playing out. Harley Finkelstein,
Speaker 3: president of Shopify, And look, clearly investors love the numbers today.
Speaker 3: We're seeing the shares rally hard. Harley, how sustainable is that?
Speaker 3: That level of discipline but also showing growth into the
Speaker 3: next fiscal quarter.
Speaker 9: Yeah, thanks for having me on the show.
Speaker 1: Caroline and Ed look.
Speaker 9: We later at a very deliberate vision to balance both
Speaker 9: operational ambition, which we certainly have a lot of, but
Speaker 9: also the financial discipline. And the results speak for themselves.
Speaker 9: We are delivering top land growth and profitability. Q three GMV,
Speaker 9: which of course is the proxy for how well the
Speaker 9: merchants are doing on Shopify, was up twenty two percent
Speaker 9: to fifty six billion, Revenue was up to twenty five
Speaker 9: percent to one point seven billion, and as you pointed out,
Speaker 9: we have cash flow of north of two hundred and
Speaker 9: seventy million now with every quarter ticking up. That cash
Speaker 9: flow is a percentage of revenue, and Q four is
Speaker 9: expected to keep this trend going. One of the other
Speaker 9: things that I don't think is getting covered, but is
Speaker 9: very exciting to us, is that more of the largest
Speaker 9: and most hord and brands on the planet are joining Shopify,
Speaker 9: like Ted Baker and Tom's and LVMH's, Puuci and Quicksilver
Speaker 9: and Billabong.
Speaker 1: And it's a really great for us.
Speaker 9: It's a great story, but it's a story of balancing
Speaker 9: both growth and profitability simultaneously. And that's because we have
Speaker 9: a new shape of the company, which is far more
Speaker 9: focused on our main quest and things that are most important.
Speaker 4: Highly on that new shape and those brands that you're
Speaker 4: talking about. How much of that focuses into the outlook.
Speaker 4: There's an accusation out there from some on the street
Speaker 4: that you guys are a little bit conservative with the
Speaker 4: outlook and maybe you could do a bit more.
Speaker 9: Yeah, well, look, I think we are as a company
Speaker 9: firing up all cylinders, both horizontally and vertically. On the
Speaker 9: vertical side, obviously, Shopify is known to be the entrepreneurship company,
Speaker 9: the place where millions of small businesses go to start
Speaker 9: businesses and grow those businesses. But we also have this
Speaker 9: incredible effort around enterprise commerce whereby some of the largest
Speaker 9: companies some of those I mentioned, but you know, companies
Speaker 9: like Spanks for example, and Glossier for example, and the
Speaker 9: Mars Company for example, and Blackenedncker.
Speaker 4: All come into Shopify as well.
Speaker 9: At the same time, one of the other metrics that
Speaker 9: we really think a lot about is our product attach rate,
Speaker 9: and that really is a proxy for the usage of
Speaker 9: our products and platform buyer merchants. That's over three percent,
Speaker 9: so that means more merchants are taking more of our products,
Speaker 9: whether that's things like capital or shipping, or payments or
Speaker 9: even audiences for example. We like that, we like being
Speaker 9: the center of the business for these millions of stores, and.
Speaker 3: You managed this way bigger players and keep those smaller
Speaker 3: players at the same time as increasing pricing. I'm interested
Speaker 3: in how you are thinking about monetization going forward.
Speaker 5: Holly.
Speaker 9: Yeah, montation is something that we certainly in the last
Speaker 9: year and a half or so, I have been spending
Speaker 9: a lot more time thinking about. I've been at Shopify
Speaker 9: now for over a third of my life, almost fourteen
Speaker 9: years now, and we really never change pricing. We made
Speaker 9: our first change last year to our basic plan, which
Speaker 9: most merchants are using. We increased it by about a third,
Speaker 9: by but thirty three percent, and we saw very little pushback.
Speaker 9: And that sort of suggests to us that the value
Speaker 9: to cost ratio of Shopify is so far in the
Speaker 9: side of value, and so as we think about changing
Speaker 9: pricing across other products or even other plans, we want
Speaker 9: to be deliberate about it, but we believe that we
Speaker 9: still have an opportunity to increase pricing in the future.
Speaker 4: Holly, quickly, what's the AI story for Shopify?
Speaker 9: Yeah, Well, look, I think we are actually uniquely positioned
Speaker 9: to harness the power of AI. We think that particularly
Speaker 9: small businesses and entrepreneurs will really benefit from these tools.
Speaker 9: But unlike other generator of AI products, are AI product
Speaker 9: which is called Shopify Magic One. It's designed specifically for
Speaker 9: commerce and retail. But also it's not just one feature,
Speaker 9: one product. What we've done is we've embedded across all
Speaker 9: of our features and all of our workflows so that
Speaker 9: more people can start businesses and more people can be
Speaker 9: a lot more successful. And merchants are finding it to
Speaker 9: be really valuable. They spend more time making their products
Speaker 9: and less time doing some of the administrative tasks, which frankly,
Speaker 9: AI is really good at.
Speaker 4: Holly Finklestein, president of Shop five, Always greats. Catch up,
Speaker 4: Thank you.
Speaker 3: Welcome back to Bloomberg Technology. I'm Caroline had in New
Speaker 3: York and.
Speaker 4: I'm Ed Ludlow in San Francisco. Carra quit check in
Speaker 4: on the markets, and as you know, this week we're
Speaker 4: checking in on the European close. Given the time difference,
Speaker 4: the stock six hundred Europe, which is our main gauge
Speaker 4: of European equities, on track for a fourth straight gain
Speaker 4: or has closed now and hit a four straight day
Speaker 4: of gains, which is its longest streak of winds going
Speaker 4: back to July. A lot of the trading was around
Speaker 4: what was happening with the Fed last night, even though
Speaker 4: that's a different jurisdiction. Also the BOE, the Bank of England,
Speaker 4: keeping rates are unchanged and really talking down the prospect
Speaker 4: of further cuts. We just heard, of course on Bloomberg
Speaker 4: Television our interview with the Bank of England's governor. This
Speaker 4: is what the foot see one hundred looks like, up
Speaker 4: one point four percent on the day, Serling GBPUSD up
Speaker 4: to ten to four percent, and UK ten year yield
Speaker 4: soft for a little bit eleven basis points four point
Speaker 4: three eight percent. One more day in the week. We'll
Speaker 4: review that European market close update, Caroline.
Speaker 5: Meanwhile, let's just check in on how the US is performing.
Speaker 3: And I have to say it was rallying in the
Speaker 3: UK and we've been rallying worldwide today on the back
Speaker 3: of macropolicy. The Federal of course looking like it's done,
Speaker 3: perhaps with its really hawkish viewpoint on where rates have
Speaker 3: to go. Now sack at one point three percent. I'm
Speaker 3: shining a light, and what on earth is happening with Peloton,
Speaker 3: because of course it is, you know, a volatile stock.
Speaker 3: Nowaday is only worth five dollars when you're looking at
Speaker 3: it's per share price point twelve dollars, a twelve percent
Speaker 3: rally when we had been sinking hard after their numbers.
Speaker 5: This is all is really.
Speaker 3: They actually managed to beat in their fiscal first quart
Speaker 3: when it comes to revenue, when it comes to a
Speaker 3: bit darm when it comes to margin.
Speaker 5: But there is a slightly weak look ahead in.
Speaker 3: Terms of signaling what Bernstein is saying basically zero growth.
Speaker 5: So there's a bare narrative there.
Speaker 3: However, the first called Martin first quarter margins were particularly strong,
Speaker 3: says Bernstein.
Speaker 5: Nevertheless, kind of co ingenuity.
Speaker 3: For example of that particular analyst downgrading the stock to
Speaker 3: a price target of five versus eight dollars and cuts
Speaker 3: from a hold to a hold from a by So
Speaker 3: interesting narrative coming from Peloton. Bitcoin under pressure today even
Speaker 3: with the dollar weaker, So interesting selling of that particular
Speaker 3: with scasid d.
Speaker 4: All Right, another earnings one. We're watching Airbnb. Let's bring
Speaker 4: in more, get more with Bloomberg's Natali learning Natalie, I'm
Speaker 4: looking at shares with down more than three percent. This
Speaker 4: is the story of the world economy catching up with
Speaker 4: Airbnb a little bit in terms of the outlook that
Speaker 4: they gave us.
Speaker 8: Yes, So, in their fourth quarter outlook statement, they mentioned
Speaker 8: they saw some early volatility in the quarter. On their
Speaker 8: earnings call, they mentioned it was hard to pinpoint what
Speaker 8: exactly it was, but they pointed it to macro economic
Speaker 8: factors as well as political tensions.
Speaker 3: Leslie, we sit here in New York and what's been
Speaker 3: so interesting is the regulatory pressure that Airbnb is coming
Speaker 3: under in this particular city. Do they speak to that
Speaker 3: narrative just how much the business model is kind of
Speaker 3: being uphended at the moment right.
Speaker 8: Their take is that New York is like a smaller
Speaker 8: market right now for them, like around one percent of
Speaker 8: their revenue before the regulations kicked in. And their take
Speaker 8: is that over eighty percent of their top markets have
Speaker 8: been regulated. So they're still confident that with their business model,
Speaker 8: with supply of the listing still growing at a double
Speaker 8: digit rate.
Speaker 3: What was interesting also about Airbnb and its leadership was
Speaker 3: they didn't have to sort of make those painful announcements
Speaker 3: of job cuts when everyone else was they managed to
Speaker 3: steer the business remain lean. Are they going to have
Speaker 3: to think about that a little bit more with macroeconomic headwinds,
Speaker 3: with geopolitical tensions, with the old regulatory headwind here in
Speaker 3: the US.
Speaker 8: Right, a lot of analysts who have It's serrating at
Speaker 8: the highest number right now, and a lot of her
Speaker 8: are looking for long term growth catalysts, and this is
Speaker 8: why they are coming up with product updates to try
Speaker 8: to make the platform more reliable, getting continue hosting with
Speaker 8: them and also gets to continue booking with them.
Speaker 4: So the response is really key here. You know, the
Speaker 4: pandemic era, that behavior of consumers has changed. Stays of
Speaker 4: twenty eight days or more in focus. But next week
Speaker 4: we think we're going to get all kinds of new products.
Speaker 4: What does the future look like for Airbnb and Natalie.
Speaker 8: Right CEO Brian Cheskey says, they're laying the foundation for
Speaker 8: a lot of the new services that are coming out,
Speaker 8: whether it's using AI as a better matching service. All
Speaker 8: these updates are to you know, tell guests and hosts
Speaker 8: to keep you know, booking and using their platforms.
Speaker 3: Won't keep an eye on how those product anounments do
Speaker 3: you transpond Natalie Lung, We thank you for the inside
Speaker 3: track on Airbnb. Meanwhile, we've got more on earnings, etc.
Speaker 3: Of course came out.
Speaker 5: We want to bring in Punham, Gil from Bluebeg Intelligence
Speaker 5: and Punham.
Speaker 3: I'm so fascinated with ETC's numbers because we just spoke
Speaker 3: with the president of Shopify feeling very resilient about where
Speaker 3: a consumer is managing to be and really show path
Speaker 3: to growth.
Speaker 5: Why is etc.
Speaker 3: Not managing to mimic that sort of consumer strength.
Speaker 2: I think it's it's a little bit of a different
Speaker 2: story because we are seeing consumer spending slow down, consumers
Speaker 2: are making trade offs, so I think it's about more
Speaker 2: where are you finding what you want? We saw a
Speaker 2: good result out of Amazon, so you can't say that
Speaker 2: the consumer is down everywhere. But I think with Etsy.
Speaker 2: You know, when you think of Etsy, you think about
Speaker 2: gift giving, right, you think about what can you get
Speaker 2: that's unique and different? But Etsy offers so much more
Speaker 2: than that that there just is an awareness for so
Speaker 2: I think it's about them continuing to build that awareness
Speaker 2: that's going to get more buyers onto the platform. They
Speaker 2: saw a really nice increase in sellers in the quarter.
Speaker 2: They were up about nineteen percent, which is encouraging. So
Speaker 2: people want to sell on Etsy. Small businesses want to
Speaker 2: sell on Etsy, but they still need.
Speaker 5: The buyer growth.
Speaker 2: We need to see more buyer growth. We need to
Speaker 2: see buyers want different things from Etsy, not.
Speaker 4: Just the gifts Panama. I was reading your outlook on
Speaker 4: Etsy last night, and one of the things you talk
Speaker 4: about is something Caroline and I have discussed with every
Speaker 4: commerce company in the world, which is personalization. Why will
Speaker 4: that help them address the issues you just outlined Because.
Speaker 2: When you go online, you have an endless aisle. You
Speaker 2: go to a store, you walked the aisle where you
Speaker 2: know you'll find what you want. But when you go online,
Speaker 2: list goes on and on and on forever. So the
Speaker 2: ability to personalize for any company and really give the
Speaker 2: consumer more of what they want than just everything, is
Speaker 2: going to help drive conversion. Online conversion is just low
Speaker 2: single digits, so people browse more online than they buy,
Speaker 2: and the ability to personalize, the ability to cater to
Speaker 2: their needs is really going to help drive that conversion higher.
Speaker 3: I mean, I'm kind of amazed that people don't realize
Speaker 3: the breadth of things you can get on Etsy.
Speaker 5: I'm just thinking producers.
Speaker 3: Reminding us of the Taylor Swift and the Beyonce getting
Speaker 3: your glitter and your silver ahead of time. Everyone was
Speaker 3: turning to an Etsy at that particular moment. I think
Speaker 3: of how much Halloween must be a push forward for
Speaker 3: makers on Etsy.
Speaker 5: What do you think?
Speaker 3: What do you want to see from leadership here? Basically
Speaker 3: to market themselves.
Speaker 2: I think they need to just invest in marketing. They
Speaker 2: need to get the word out there that Etsy has
Speaker 2: a lot more. You know, think about the home category
Speaker 2: that they talked about. We are seeing people invest back
Speaker 2: in their homes. You know, they took a pause after
Speaker 2: the pandemic, but now you're thinking, you know, can I
Speaker 2: upgrade something in my home because it's too expensive to
Speaker 2: upgrade out of my home into a new one. So
Speaker 2: you're seeing stuff like that plan and at C sells
Speaker 2: a lot of home but that's not where you go
Speaker 2: for your home stuff. Right now, You've got a Wayfair,
Speaker 2: you got to Amazon, You've got to target Walmart.
Speaker 5: Et cetera.
Speaker 3: Interesting, it's saying that Shopers are focused on essentials less
Speaker 3: on discretionary. That's the macro impact. Punam Goyle love speaking
Speaker 3: with you. Thank you from Bloomberg Intelligence.
Speaker 5: Meanwhile, coming up, we'll get the latest from the trial
Speaker 5: and Juan sam magmuin Freed. DURAS they're beginning their deliberations today.
Speaker 3: We're going to be joined by a rock Change Association
Speaker 3: CEO Chris Smith about well the overall impact on the
Speaker 3: cryptospace ed.
Speaker 4: YEP more earnings as well paypower as a mover to
Speaker 4: the upside boosted its profit outlook. Remember this is the
Speaker 4: first earnings that Alex Chris is overseeing as CEO. They
Speaker 4: announcement you see FO Jamie Miller who joins from ERTs
Speaker 4: and Young. They also received a subpoena from the SEC
Speaker 4: relating to their work in dollar denominated stable coin and
Speaker 4: in the regulatory filing say they're complying with the SEC.
Speaker 4: So that's going to be a story track which shares
Speaker 4: up almost five percent. This is Bloombog Technology. With the
Speaker 4: FTX trial now wrapped up, DURAS are beginning deliberation on
Speaker 4: Sam Bankman Freed's fate right now today. What does it
Speaker 4: mean for the crypto industry? What does it mean for
Speaker 4: Sam Bankman Free. That's bringing Kristensen Air, CEO of the
Speaker 4: Blockchain Association for kind of the bigger picture on what's
Speaker 4: going on here? But first of all, okay, the jury
Speaker 4: is away deliberating. Yes, the closing argument from Sam Bankman,
Speaker 4: Freed's attorney was that he has been painted unjustifiably so
Speaker 4: as a villain. And Bloomberg has this piece today that
Speaker 4: there were six opportunities where he was given a choice
Speaker 4: tell the truth or double down, and the prosecution says
Speaker 4: he doubled down. What are you makable of that?
Speaker 5: Yeah?
Speaker 10: I mean, I think the evidence is incredibly compelling. It
Speaker 10: seemed that every time Sam got in trouble, instead of
Speaker 10: confronting that trouble, he was like a gambler in Vegas
Speaker 10: and ended up doubling down again. And unfortunately he was
Speaker 10: apparently getting that money from customer fund.
Speaker 4: So, you know, very interesting.
Speaker 10: I think, a dramatic trial. I'm very curious to see
Speaker 10: what verdict the jury returns. It sounds like some speculate
Speaker 10: that could happen even as soon as today. But you know,
Speaker 10: I think from the crypto industry perspective, we're very eager
Speaker 10: to see this chapter closed. We feel like people are
Speaker 10: unfairly conflating the entire industry with one man in one company,
Speaker 10: when really this is a story about a krook, not
Speaker 10: a story about crypto, and so we're excited to move forward.
Speaker 10: But yes, certainly been an entertaining, an interesting trial, something
Speaker 10: I think they'll make movies on.
Speaker 4: This is very much an innocent until proven guilty situation.
Speaker 4: It is a jury trial after rule, but in the
Speaker 4: event survivor outcome. Has this series been damaging to the
Speaker 4: goals of the Blockchain Association because you essentially want the
Speaker 4: underlying technology that supports crypto to be mainstream globally.
Speaker 10: Yes, absolutely, and we're trying to get public policy makers
Speaker 10: in Washington to understand the technology so that we can
Speaker 10: get the appropriate regulatory framework in place. And I think absolutely,
Speaker 10: without question, this case and this trial has been damaging
Speaker 10: to the industry. I think the good news though, is
Speaker 10: in the past year since these events went down, we
Speaker 10: have seen leaders across the crypto industry from other leading companies,
Speaker 10: We've seen entrepreneurs, we've seen individual members of the community.
Speaker 10: They've really taken an interest in working in Washington and
Speaker 10: talking with policymakers, and so what used to be just
Speaker 10: sort of Sam Bateman free going around and taking up
Speaker 10: a lot of the time that has been replaced with
Speaker 10: a much broader, more diverse set of individuals in the
Speaker 10: crypto ecosystem, and those actually have the right values, that
Speaker 10: are building things, that believe in the power of decentralization,
Speaker 10: and they aren't just here to make a bunch of money.
Speaker 4: So they can give it away.
Speaker 10: At least that's a sam stated motive.
Speaker 5: Some of the.
Speaker 3: Voices that are now speaking to regulators, well, one of
Speaker 3: them might be over at PayPal at the moment. We understand,
Speaker 3: of course, that the SEC is looking into their view
Speaker 3: on stable coins in particular.
Speaker 5: How are you seeing that sort of discussion bear out
Speaker 5: at the moment.
Speaker 3: We know that Gary Gensler is pretty well cynical, shall
Speaker 3: we say, about the space, But what are the other
Speaker 3: people in the room at the moment saying?
Speaker 10: Yeah, No, that's an interesting question, Caroline. I mean, we
Speaker 10: don't know a whole lot about what the SEC is
Speaker 10: asking PayPal about its new stable coin business, only that
Speaker 10: they are asking questions, so it's a little bit unclear.
Speaker 10: You know, typically the SEC does not have jurisdiction over
Speaker 10: stable coins because stable coins are not securities. But we
Speaker 10: are seeing right now is a lot of discussion on
Speaker 10: Capitol Hill about what is the right regulatory framework for
Speaker 10: stable coins. Both in the Trump administration and in the
Speaker 10: Biden administration, we had reports from the President's Working Group
Speaker 10: that recommended ideas for regulatory framework. This summer, we saw
Speaker 10: Patrick McHenry pass a bill through his committee that would
Speaker 10: provide a regulatory framework for stable coins. And I do
Speaker 10: think there's a very good chance that before perhaps not
Speaker 10: the end of this year, but before the end of
Speaker 10: this Congress, that we do see stable coin legislation move forward,
Speaker 10: because this is an issue that everyone agrees needs to
Speaker 10: be addressed. But it's not the role of Gary Gensler
Speaker 10: to regulate stable coins. He's a securities regulator and stable
Speaker 10: coins are not securities.
Speaker 3: Wow Hill debate that CFPB, the Consumer Financial Protections Bureau,
Speaker 3: also overlooking these sorts of movements from big companies towards
Speaker 3: accessing crypto at large by a consumer base. What about
Speaker 3: the ETF's conversation as well. I mean, ultimately that's what's
Speaker 3: sort of been driving bitcoin the og of the crypto space.
Speaker 3: Are we anticipating as soon as this end of this
Speaker 3: year that we will get US sport bitcoin ETF? And
Speaker 3: how much do you think that will be like loathed
Speaker 3: when we still have this slightly colouled over the whole space.
Speaker 5: Yeah.
Speaker 10: No, I mean I think we're already starting to see
Speaker 10: some price action in the markets on anticipation of a
Speaker 10: bitcoin ETF. You know, we had a very important moment
Speaker 10: over the summer where the SEC lost a case that
Speaker 10: it acted in an arbitrary and capricious manner by not
Speaker 10: moving forward with a spot bitcoin ETF. You know, much
Speaker 10: thanks to Gray Scale and our legal team for all
Speaker 10: of the hard work that they put in to get
Speaker 10: to get that ruling. And so I think what we
Speaker 10: have now are multiple applications. These applications have deadlines where
Speaker 10: the SEC has an opportunity to extend them, but most
Speaker 10: of these deadlines are coming up in January. So I
Speaker 10: think it's highly likely in the next couple of months
Speaker 10: that we will get a Bitcoin spot a spot bitcoin
Speaker 10: ETF approved, And I think that there are a lot
Speaker 10: of investors that are eager to be able to access
Speaker 10: exposure to bitcoin through their typical brokerage platform.
Speaker 4: There was one tangible example of blockchain technology use out
Speaker 4: of London this morning, HSB A frankly one of the
Speaker 4: biggest billion banks in the world, using distribute distributed ledger
Speaker 4: excuse me to to prove that tokenizing ownership of gold works.
Speaker 4: Did you see that and if so, how does that
Speaker 4: make you feel?
Speaker 10: Is it really I didn't see that particular story, but
Speaker 10: I know there are a lot of people looking right
Speaker 10: now to figure out how can we tie these real
Speaker 10: world assets to blockchains, because they can be an incredibly
Speaker 10: efficient way for tracking information. And so the key kind
Speaker 10: of becomes, how do you connect that asset, the digital
Speaker 10: asset to the real world asset. But there are a
Speaker 10: lot of people that are exploring exploring this place right now,
Speaker 10: and I think there are a lot of opportunities for
Speaker 10: upgrading the infrastructure for tracking a lot of things we
Speaker 10: do in the traditional investment space.
Speaker 3: A lot of people still talking about that underlying technology.
Speaker 3: Blockchain Association CEO Christma Smith, thank you so much for
Speaker 3: joining us on this day.
Speaker 5: Meanwhile, and you're sticking with a crypto.
Speaker 4: Yeah, we got some news sticking with crypto sentiment around coinbase,
Speaker 4: which is rising with the long anticipated debut of a
Speaker 4: bitcoin etf appearing in ant This has been fueling expectations
Speaker 4: for a widespread increase in demand and prompting some investors
Speaker 4: to disregard the uncertainty which we've been talking about surrounding
Speaker 4: the largest US crypto exchange, even as the SEC lawsuit
Speaker 4: filed earlier this year continues to clown coinbases out look
Speaker 4: time for Talking Tech and first up into It is
Speaker 4: winding down personal finance app Mint and pushing users to
Speaker 4: shift to credit Karma, a similar service that the company
Speaker 4: acquired in twenty twenty. Mint will no longer be available
Speaker 4: at the start of twenty twenty four, and its team
Speaker 4: and product features are being moved within Credit Karma. And
Speaker 4: Google's vice president of Search testified about the company's AI
Speaker 4: efforts that the Justice Department's antitrust trial against the search
Speaker 4: giant and disputed suggestions that the company rushed to release
Speaker 4: its AI chatbot Bard earlier this year in order to
Speaker 4: beat Microsoft's offering. Plus, the UK Summit on AI Safety
Speaker 4: is wrapping up, with AI leaders debating over how much
Speaker 4: to focus on the supposed existential risks of AI, highlighting
Speaker 4: those broader tensions in the tech community as lawmakers propose
Speaker 4: regulation and safeguards. Prime Minister Richie Sunak will be leading
Speaker 4: talks on the final day of the summit before a
Speaker 4: conversation with Elon Musk later today gosh, that was a
Speaker 4: lot to take on board.
Speaker 3: Carolina, and let's get more from the AI summit. Mark
Speaker 3: Bergen joins US now from London, and there has been
Speaker 3: this tension about immediate threats of AI versus long term
Speaker 3: and many they're trying to say, look, it's not actually
Speaker 3: about the risks, it's about the models that are in
Speaker 3: development and analyzing where they go in the next year.
Speaker 3: But ultimately, what are some of the takeaways from this summer?
Speaker 5: What have they actually progressed on.
Speaker 11: I mean, one of the major takeaways we saw yesterday
Speaker 11: the speech from the Karma US Commerce Secretary followed by
Speaker 11: Vice Minister of China sharing the same stage, agreeing on
Speaker 11: very broad terms with the kind of that all the
Speaker 11: countries put out around these catastrophic harms. But at least
Speaker 11: that's a symbolic and sort of diplomatic victory here for
Speaker 11: the UK and for the summit, the fact that they
Speaker 11: could bring together the US and China where they have
Speaker 11: clearly desperate views on the geopolitics involved with AI and
Speaker 11: the US and certainly has has talked about China's AI
Speaker 11: development as being a sort of military threat.
Speaker 3: It's interesting we're going to debate a little bit more
Speaker 3: about who was there and whether or not they were
Speaker 3: being mobbed or not. It seems as though there's some
Speaker 3: talk that Ranning in a musk was mobbed and he
Speaker 3: held court with delegates, but also.
Speaker 5: And other times were sitting and listening and taking all.
Speaker 3: In some of the discussions around AI and the control
Speaker 3: of AI. How how has basically the corporate side of
Speaker 3: the conversation gone.
Speaker 4: Mark, It's funny, I meationed Elin.
Speaker 11: I mean you said, like the UK has put him
Speaker 11: out as a as an interesting figurehead and sort of
Speaker 11: the shining big CEO that they got. I mean there's
Speaker 11: a debatable certainly his company is involved artificial intelligence, but
Speaker 11: he's definitely not one of the leaders building these large
Speaker 11: language models that were all paying attention to, and that
Speaker 11: frankly is sort of this frontier AI that the conference
Speaker 11: is meant to be about. And then we saw, you know,
Speaker 11: the benefit here is they get the Elon halo attached
Speaker 11: to that and a lot of attention, and then the
Speaker 11: side is that, you know, the the other side of
Speaker 11: Elon is his tweet that he put out I think
Speaker 11: it is less than an hour ago, right, this sort
Speaker 11: of cartoon that was I only interpreted as a criticism
Speaker 11: of the conference itself.
Speaker 4: Well must tweeting a meme shock there is some mechanics
Speaker 4: of things to come. This evening Musk and Prime Minister
Speaker 4: sun Act just quickly woke us through what we're expecting.
Speaker 11: I mean, you know, Elon has talked a lot about
Speaker 11: sort of what we what we've paraphrases is the doom
Speaker 11: doomsayer version of AI or at the existential risk. He
Speaker 11: was one of the notable signatories on this letter earlier
Speaker 11: this year about slowing down the advancement. I do and
Speaker 11: very curious to seeing one of the conversations that's happening
Speaker 11: kind of on the fringes of the event and even
Speaker 11: at the event itself.
Speaker 4: Meta has made this claim. This their chief scientist.
Speaker 11: And then we had a really fascinating interview with with
Speaker 11: Google's deep Minds demos about this idea that there's this
Speaker 11: regulatory capture that the biggest companies are basically saying, regulate
Speaker 11: us and only us, so the smaller companies can compete.
Speaker 11: And I imagine that Elin will have and certainly have
Speaker 11: an opinion on that, and probably likely I would say
Speaker 11: that there is some regulatory capture involved Bergen.
Speaker 3: I'm sure you'll be tuning in some of those conversations
Speaker 3: going on on X in a minute, and we thank
Speaker 3: Mark can I. Meanwhile, we've got news relating to musks
Speaker 3: other ventures, Ryan.
Speaker 4: Yeah, and also via social media posts. Starlink, the space
Speaker 4: based internet service offered by SpaceX, has it cash flow
Speaker 4: break even. According to Elon muscle Man and SpaceX CEO
Speaker 4: posted the financial update to his social media platform chs
Speaker 4: for meerly known as Swiss, who also shares this. Starlink
Speaker 4: has launched a majority of all the satellites cumulatively from
Speaker 4: Earth by next year, Kara, And this just shows the
Speaker 4: proyus they've made. But investors want to know, a are
Speaker 4: they going to make money on Starlink? Apparently so when
Speaker 4: will they spin it off in an ipo?
Speaker 3: And still what the most valuable private company out there?
Speaker 4: Big time? Yes, still the most valuable, and we've been
Speaker 4: reporting based on these tender rounds the valuation edging above
Speaker 4: one hundred and fifty billion, which is crazy quite a lot.
Speaker 5: Meanwhile, that does it for this edition of Bloomberg Technology.
Speaker 4: Yeah, we have the podcast wherever you get your podcasts
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Speaker 4: and iHeart. We really appreciate all of you that listen
Speaker 4: in from New York and SF. This is Bloomberg