WEBVTT - Qualcomm Shares Pop and FTX Trial Update 0:00:01.639 --> 0:00:06.920 From Marhard. We're Innovation, Money and Power Collie in Silicon Valley, NBN. 0:00:07.280 --> 0:00:11.319 This is Bloomberg Technology with Caroline Hyde and Ed Love Love. 0:00:24.800 --> 0:00:27.800 I'm Caroline Heinderlumberg's world headquarters in New York and I 0:00:27.880 --> 0:00:29.320 met Ludlow in San Francisco. 0:00:29.480 --> 0:00:31.520 This is Bloomberg Technology coming up. 0:00:31.600 --> 0:00:33.200 Full earnings coverage ahead. 0:00:33.200 --> 0:00:35.960 We've got Qualcom, the ches popping after chip maker is 0:00:35.960 --> 0:00:39.120 providing an upbeat forecast, singing the mobile phone slump. 0:00:38.880 --> 0:00:42.080 It's easing and sticking with smartphones. We'll push your head 0:00:42.080 --> 0:00:44.360 to earnings from Apple, which a duo to come out 0:00:44.400 --> 0:00:45.600 after the bell today. 0:00:45.600 --> 0:00:47.320 And we'll have the latest in the trial of Sam 0:00:47.320 --> 0:00:50.680 Magunfried as Jura's begin deliberations today. 0:00:51.120 --> 0:00:52.879 But first, let's check in on these markets and. 0:00:52.840 --> 0:00:55.800 The feel good music after the Federal Reserve and that 0:00:55.960 --> 0:00:58.840 feeling that the Fed is basically perhaps done with the 0:00:58.880 --> 0:01:02.080 real fast and few pace of rate heights really dials 0:01:02.120 --> 0:01:04.840 into a desire to buy these stocks in the particularly 0:01:04.840 --> 0:01:06.880 in the tech space. We're up five straight days on then, 0:01:06.920 --> 0:01:09.240 now's that one hundred best winning streets since we sinceince 0:01:09.280 --> 0:01:10.319 about August of last year. 0:01:10.319 --> 0:01:11.600 And indeed we're seeing. 0:01:11.400 --> 0:01:13.280 S and P five hundred having its best day since 0:01:13.280 --> 0:01:16.039 August on the day, so overall at one point three percent. 0:01:16.040 --> 0:01:18.840 We're seeing All country World Index basically European stocks pushed higher, 0:01:19.000 --> 0:01:21.440 so tooed in Asia we're having our best day in 0:01:21.720 --> 0:01:23.680 one months, it would seen. We're up one point six percent, 0:01:23.800 --> 0:01:25.920 best day on the All Country World Index since the 0:01:25.920 --> 0:01:27.559 beginning of the year. And I'm looking at the US 0:01:27.680 --> 0:01:31.000 thirty year as we see that sort of desire to 0:01:31.040 --> 0:01:34.080 be buying into bond markets because yields are likely falling 0:01:34.120 --> 0:01:35.920 because maybe the Federal Reserve doesn't have to keep on 0:01:36.000 --> 0:01:39.040 hiking into this particular macro economy. We're down some nine 0:01:39.080 --> 0:01:41.280 basis points on the longer end. We were down much 0:01:41.319 --> 0:01:43.760 further earlier on today, And love quick look at what's 0:01:43.760 --> 0:01:44.959 happening in the world of crypto, because this is. 0:01:44.959 --> 0:01:45.800 An interesting one. 0:01:46.040 --> 0:01:49.240 The dollar is down because we're not anticipating such a 0:01:49.280 --> 0:01:51.960 hawkish FED, but those bitcoins, so that just shows that 0:01:51.960 --> 0:01:54.280 there's really some pulling away from this particular risk asset. 0:01:54.280 --> 0:01:56.440 At the moment, we're off by some two percent, so 0:01:56.480 --> 0:01:59.480 thirty four thousand still heading above that all important sort 0:01:59.520 --> 0:02:01.600 of thirty four thousand dollars level, but notable that we've 0:02:01.600 --> 0:02:03.520 got a little bit of caution in that particular space. 0:02:03.600 --> 0:02:05.000 What are you looking at in the micro. 0:02:05.600 --> 0:02:08.720 There are many many technology earnings to pass over, and 0:02:08.800 --> 0:02:12.320 the first is Peloton interesting because they gave a guidance 0:02:12.360 --> 0:02:14.400 for revenue for the rest of the year there was 0:02:14.480 --> 0:02:18.079 pretty weak. They're having trouble converting free users of their 0:02:18.120 --> 0:02:21.760 app into paid subscribers. They were really down after Earning's hit. 0:02:22.000 --> 0:02:25.480 Now they're up significantly eleven percent. Growth is coming, they 0:02:25.480 --> 0:02:28.399 say in the market, clearly buying it another p Palenteer 0:02:28.760 --> 0:02:31.960 also upgrading its profit outlook for the full year twenty three, 0:02:32.040 --> 0:02:36.560 also slightly upgrading its revenue expectations. The story AI Palenteer's 0:02:36.560 --> 0:02:38.400 and AI sorry you and I've hit all year long. 0:02:38.680 --> 0:02:41.200 Now the financials are starting to show that four straight 0:02:41.240 --> 0:02:44.280 quarter of profit also up eighteen percent. Then after market 0:02:44.280 --> 0:02:47.200 we get Apple. We know what's coming. Four straight quarter 0:02:47.520 --> 0:02:49.880 of sales declined. You have to go about two decades 0:02:50.040 --> 0:02:51.800 for Apple to have a slump like that. But we 0:02:51.880 --> 0:02:54.640 get some insight into how the iPhone fifteen is doing, 0:02:54.680 --> 0:02:56.920 so we get about nine days worth of sales in 0:02:56.960 --> 0:02:59.080 that September quarter. The main one I'm looking at right 0:02:59.120 --> 0:03:02.480 now is quite forecast for the current period of revenue 0:03:02.560 --> 0:03:04.960 nine point one to nine point nine billion dollars a 0:03:05.000 --> 0:03:08.119 big range, but at the midpoint of that range you're 0:03:08.120 --> 0:03:12.000 well above analyst expectations. Is for sales. The thinking it 0:03:12.160 --> 0:03:14.760 signals that things were recovering in the smartphone market. So 0:03:14.800 --> 0:03:16.880 let's get more on that cloud coom story and bring 0:03:16.880 --> 0:03:20.840 in congen Sibani or Bloomberg intelligence. That's the guidance. What 0:03:20.960 --> 0:03:24.280 do you read into that congent about the smartphone market globally? 0:03:25.560 --> 0:03:27.680 Thanks Ed, I mean, coming into the quarter, it was 0:03:27.720 --> 0:03:31.200 pretty clear that the smartt phone market had hit its bottom. 0:03:31.440 --> 0:03:34.399 Customers have been clearing out inventory for a few weeks now, 0:03:34.600 --> 0:03:37.040 but what was not clear was what to expect in 0:03:37.120 --> 0:03:39.960 terms of the speed and size of the market snapback, 0:03:40.280 --> 0:03:43.160 especially in the Android market in China, which is sort 0:03:43.200 --> 0:03:45.280 of which was sort of holding back the start of 0:03:45.360 --> 0:03:47.800 the recovery for Qualcom, and there was this build up 0:03:47.800 --> 0:03:50.240 anxiety around if we are going to have brace for 0:03:50.320 --> 0:03:52.960 another disappointment. So it was a sile of relief to 0:03:53.000 --> 0:03:56.080 see signs of green shoots over there, especially from their 0:03:56.120 --> 0:03:58.880 better one Q guidance and a couple of data points 0:03:58.880 --> 0:04:02.240 to valid it was the twenty five percent sequential revenue 0:04:02.280 --> 0:04:06.200 growth from the Chinese Android OEMs, and them confirming that 0:04:06.240 --> 0:04:09.360 they will keep the majority share at Samsung twenty four launch. 0:04:10.280 --> 0:04:12.320 All of this, though, is at a time where Christiana 0:04:12.400 --> 0:04:15.880 Armon is trying to diversify away from really the all 0:04:15.920 --> 0:04:17.479 in on the mobile space. 0:04:17.800 --> 0:04:18.680 How is that working? 0:04:18.720 --> 0:04:21.200 How is that bearing fruit when you're looking at connected devices, 0:04:21.200 --> 0:04:23.400 when you're looking at automotive for example. 0:04:24.200 --> 0:04:27.200 Look, the a PC is really a call option for them. 0:04:27.240 --> 0:04:30.480 Specifically in terms of street estimates, the numbers right now 0:04:30.520 --> 0:04:33.680 don't even attribute much revenue coming from this business, and 0:04:33.760 --> 0:04:37.520 even by Qualcom's own commentary, they don't expect PC revenue 0:04:37.520 --> 0:04:40.919 to start contributing significantly under twenty twenty five. So the 0:04:40.960 --> 0:04:43.880 discussion right now around PC is more related to adding 0:04:43.880 --> 0:04:46.920 to the sentiment around this rather than the fundamentals. 0:04:47.080 --> 0:04:49.760 The good thing for them, though, is if they have any. 0:04:49.560 --> 0:04:51.839 Success, no matter what the size, it will all be 0:04:52.040 --> 0:04:53.479 upside from the current numbers. 0:04:55.360 --> 0:04:57.440 Can general want to take into some of your analysis 0:04:57.440 --> 0:05:01.440 you published last night that's about China. The landscape for 0:05:01.520 --> 0:05:04.359 smartphones in China has changed in terms of where the 0:05:04.440 --> 0:05:07.440 chips are coming from and also planning for the future. 0:05:07.839 --> 0:05:10.320 Based on what Qualcom told us, what do you read 0:05:10.400 --> 0:05:12.200 into the Chinese market for that name? 0:05:13.320 --> 0:05:15.080 Yeah, I mean again, like I said, it was the 0:05:15.120 --> 0:05:18.560 one thing that was holding back the strong recovery like 0:05:18.600 --> 0:05:21.640 we're seeing in PCs versus not seeing in smartphone. So 0:05:21.760 --> 0:05:24.680 there is good signs that the Chinese android OEMs are 0:05:24.720 --> 0:05:27.440 now pulling in and building on that inventory. 0:05:27.480 --> 0:05:28.920 So that's good for Qualcomm. 0:05:29.040 --> 0:05:32.680 The other factor there is the uncertainty about Huave possibly 0:05:32.760 --> 0:05:36.520 gaining share, So we still have to wait and see 0:05:36.520 --> 0:05:39.120 how this plays out. But right now with them getting 0:05:39.120 --> 0:05:41.960 Apple back and again getting a lot more content and 0:05:41.960 --> 0:05:44.960 Android OEMs, as long as this market keeps coming back, 0:05:45.000 --> 0:05:47.320 it's going to be a double tail wind for Qualcomm. 0:05:47.760 --> 0:05:49.839 Conjohn Savani and we thank you so much for Blue 0:05:49.880 --> 0:05:53.360 meg Intelligence and all things Qualcom and indeed China. Perfect 0:05:53.400 --> 0:05:55.480 segue there for in to our next discussion because he 0:05:55.600 --> 0:05:58.000 just mentioned Apple there, he mentioned Huawei. That's talking about 0:05:58.000 --> 0:06:00.719 Apple's reporting results after the battle. Well, he hate to 0:06:00.720 --> 0:06:02.719 walk us through what to expect is Bloomberg's Mark German 0:06:02.760 --> 0:06:05.960 and Mark a lot of people anticipating that China is 0:06:06.000 --> 0:06:08.200 going to play a big role in this set of numbers. 0:06:08.440 --> 0:06:09.719 I want to really focus in. 0:06:09.760 --> 0:06:12.159 I wish we had a replay of something Kunjan said 0:06:12.200 --> 0:06:15.200 when he first started the discussion. He noted that the 0:06:15.440 --> 0:06:20.360 Qualcom expectation for sales from Chinese handset makers our way up. 0:06:20.480 --> 0:06:22.919 I was preparing for Apple earning yesterday. 0:06:22.839 --> 0:06:25.160 And a headlined cross on the terminal during the pual 0:06:25.160 --> 0:06:30.080 foam RaaS that said, Chinese phonemaker sales connected to Qualcom 0:06:30.160 --> 0:06:32.839 are anticipated to be up a third in the current 0:06:32.920 --> 0:06:35.599 quarter where they were just up a third. That's good 0:06:35.640 --> 0:06:38.279 news for Qualcomb if you think about it, that's not 0:06:38.440 --> 0:06:42.120 very good news for Apple. To answer your question, obviously, 0:06:42.200 --> 0:06:45.080 Qualcomm makes a lot of the CPUs and chips that 0:06:45.160 --> 0:06:48.839 go into Android phones, a lot of the ones developed 0:06:48.839 --> 0:06:50.120 by Chinese manufacturers. 0:06:50.360 --> 0:06:54.200 But Apple makes their own chips. Right, If Qualtcom sales are. 0:06:54.040 --> 0:06:57.839 Going way up in China the handset makers there, something's 0:06:57.880 --> 0:07:00.680 got to give, right, So that answer here's your question. 0:07:00.720 --> 0:07:02.640 I think about what's going on with Apple in China. 0:07:02.800 --> 0:07:04.360 We may be in for a little bit of a 0:07:04.400 --> 0:07:08.200 dip there because Hawkom is taking share from somewhere, right, 0:07:08.680 --> 0:07:10.400 So I think that's something to look out for. 0:07:10.400 --> 0:07:10.760 For sure. 0:07:11.760 --> 0:07:15.040 There's the financials backward looking at what happened in the 0:07:15.080 --> 0:07:17.360 fiscal court had just gone and then you listen to 0:07:17.360 --> 0:07:19.720 what Tim Cook and Eddie Q will say about the future. 0:07:20.200 --> 0:07:22.840 The iPhone fifteen went on sale September twenty second, Right, 0:07:22.840 --> 0:07:25.559 that gives about nine days of sales in the quarter 0:07:25.560 --> 0:07:29.160 that they'll book. But in that time they've raised services prices. 0:07:29.360 --> 0:07:31.800 We had all those details on the next generation Mac 0:07:32.360 --> 0:07:35.880 and M three chips. What moves the needle mark outside 0:07:35.880 --> 0:07:37.800 of iPhone towards the end of the year and into 0:07:37.800 --> 0:07:38.520 twenty four. 0:07:39.840 --> 0:07:41.320 Yeah, I think it's wearables. 0:07:41.680 --> 0:07:44.680 I think it's stocking stoppers potentially like the lower end 0:07:44.720 --> 0:07:46.080 Apple watches in the AirPods. 0:07:46.080 --> 0:07:47.960 I think that is going to probably. 0:07:49.120 --> 0:07:50.800 Result in a lot of the momentum you're going to 0:07:50.800 --> 0:07:53.440 see from Apple in the holiday quarter. Obviously, the iPhone 0:07:53.480 --> 0:07:56.160 fifteen pro is going to do exceptionally well. You know, 0:07:56.240 --> 0:07:59.520 Apple has a pretty easy cart for the iPhone fifteen, Right, 0:07:59.600 --> 0:08:02.720 this is a redesigned phone, titanium, that new look, that 0:08:02.760 --> 0:08:05.560 new material, that new three and animator chip. That's what 0:08:05.680 --> 0:08:08.040 sells consumers. And the good news for Apple is it 0:08:08.040 --> 0:08:11.120 doesn't seem that they have any major production hiccups this 0:08:11.160 --> 0:08:14.520 time around last year you had a minor iPhone update 0:08:14.560 --> 0:08:18.320 with the iPhone fourteen, right, you had major shipment delays 0:08:18.320 --> 0:08:21.160 and major shipment constraints that you don't have this year. 0:08:21.400 --> 0:08:24.000 So you should see some nice growth on the iPhone 0:08:24.040 --> 0:08:28.080 despite the situation potentially occurring in China. So I'm looking 0:08:28.080 --> 0:08:30.840 for positivity for sure on the iPhone. In fact, if 0:08:30.840 --> 0:08:34.280 you look at Wall Street expectations for the previous quarter, 0:08:34.600 --> 0:08:38.080 the iPhone is one of the only business from Apple 0:08:38.200 --> 0:08:40.720 that we're expecting growth in the other two and this 0:08:40.840 --> 0:08:43.040 is very surprising given everything. 0:08:42.640 --> 0:08:44.360 We just discussed. Is Greater China. 0:08:44.640 --> 0:08:48.559 Wall Street is anticipating two billion dollars of year over 0:08:48.600 --> 0:08:51.000 year growth in the China business, right, going from about 0:08:51.000 --> 0:08:54.080 fifteen billion and change to about seventeen billion in just 0:08:54.120 --> 0:08:57.120 that Greater China region. So you know, it appears even 0:08:57.120 --> 0:08:59.760 if the iPhone does slow down in China, they're they're 0:08:59.760 --> 0:09:01.760 going to make up for the iPhone sales and other regions, 0:09:01.760 --> 0:09:02.679 and they're going to make up for. 0:09:02.600 --> 0:09:04.520 The iPhone China with other products. 0:09:04.520 --> 0:09:08.400 The Apple Watch is certainly growing in popularity in China. 0:09:08.440 --> 0:09:11.719 It's become a really big deal there. Even the Mac right, 0:09:11.840 --> 0:09:15.960 these higher priced, more luxurious Macs those are becoming bigger 0:09:16.040 --> 0:09:19.880 sellers in China. So no matter what's happening to the iPhone, 0:09:19.960 --> 0:09:22.160 I think based on what Wall Street is saying that 0:09:22.200 --> 0:09:23.000 they are going to make. 0:09:22.920 --> 0:09:23.240 Up for it. 0:09:23.360 --> 0:09:26.800 So we want to thank you Marghum and all things 0:09:26.840 --> 0:09:28.640 Apple as we anticipate those numbers off the bell. I 0:09:28.679 --> 0:09:31.640 mean while coming up, Look, Canadian e commerce firm Shopify 0:09:32.160 --> 0:09:34.720 talking earning there two beating estimates for the third quarter. 0:09:34.760 --> 0:09:35.719 Shares they rally hard. 0:09:35.760 --> 0:09:38.760 A conversation with the president Harley Finkelstein, that's coming up next. 0:09:39.000 --> 0:09:55.560 This is Bluemberg technology, discipline, cost cutting, that's just one 0:09:55.600 --> 0:09:57.679 of the factors that helps Shopify see positive results in 0:09:57.720 --> 0:09:59.960 their third quarter. The Canadian based e commerce platform shop 0:10:00.760 --> 0:10:04.720 says it's report showcase the durability of its business model, revenue, 0:10:04.840 --> 0:10:07.680 earnings per share, they beat estimates and then some joining 0:10:07.760 --> 0:10:10.400 us now on how the strategy is playing out. Harley Finkelstein, 0:10:10.679 --> 0:10:14.200 president of Shopify, And look, clearly investors love the numbers today. 0:10:14.200 --> 0:10:17.520 We're seeing the shares rally hard. Harley, how sustainable is that? 0:10:17.520 --> 0:10:20.280 That level of discipline but also showing growth into the 0:10:20.320 --> 0:10:21.199 next fiscal quarter. 0:10:22.000 --> 0:10:23.400 Yeah, thanks for having me on the show. 0:10:23.559 --> 0:10:24.680 Caroline and Ed look. 0:10:24.720 --> 0:10:27.560 We later at a very deliberate vision to balance both 0:10:27.600 --> 0:10:30.080 operational ambition, which we certainly have a lot of, but 0:10:30.160 --> 0:10:33.040 also the financial discipline. And the results speak for themselves. 0:10:33.120 --> 0:10:36.640 We are delivering top land growth and profitability. Q three GMV, 0:10:36.800 --> 0:10:38.600 which of course is the proxy for how well the 0:10:38.640 --> 0:10:41.040 merchants are doing on Shopify, was up twenty two percent 0:10:41.080 --> 0:10:43.559 to fifty six billion, Revenue was up to twenty five 0:10:43.559 --> 0:10:46.079 percent to one point seven billion, and as you pointed out, 0:10:46.360 --> 0:10:48.199 we have cash flow of north of two hundred and 0:10:48.200 --> 0:10:51.200 seventy million now with every quarter ticking up. That cash 0:10:51.160 --> 0:10:53.160 flow is a percentage of revenue, and Q four is 0:10:53.200 --> 0:10:55.559 expected to keep this trend going. One of the other 0:10:55.559 --> 0:10:57.200 things that I don't think is getting covered, but is 0:10:57.280 --> 0:10:59.520 very exciting to us, is that more of the largest 0:10:59.520 --> 0:11:02.360 and most hord and brands on the planet are joining Shopify, 0:11:02.800 --> 0:11:06.120 like Ted Baker and Tom's and LVMH's, Puuci and Quicksilver 0:11:06.280 --> 0:11:07.600 and Billabong. 0:11:07.679 --> 0:11:09.920 And it's a really great for us. 0:11:09.960 --> 0:11:11.760 It's a great story, but it's a story of balancing 0:11:11.800 --> 0:11:15.440 both growth and profitability simultaneously. And that's because we have 0:11:15.480 --> 0:11:17.000 a new shape of the company, which is far more 0:11:17.000 --> 0:11:19.920 focused on our main quest and things that are most important. 0:11:20.720 --> 0:11:22.960 Highly on that new shape and those brands that you're 0:11:23.000 --> 0:11:26.160 talking about. How much of that focuses into the outlook. 0:11:26.160 --> 0:11:28.600 There's an accusation out there from some on the street 0:11:28.679 --> 0:11:31.720 that you guys are a little bit conservative with the 0:11:31.760 --> 0:11:33.760 outlook and maybe you could do a bit more. 0:11:34.880 --> 0:11:37.440 Yeah, well, look, I think we are as a company 0:11:37.480 --> 0:11:40.360 firing up all cylinders, both horizontally and vertically. On the 0:11:40.440 --> 0:11:43.920 vertical side, obviously, Shopify is known to be the entrepreneurship company, 0:11:43.960 --> 0:11:46.480 the place where millions of small businesses go to start 0:11:46.880 --> 0:11:49.440 businesses and grow those businesses. But we also have this 0:11:49.559 --> 0:11:52.920 incredible effort around enterprise commerce whereby some of the largest 0:11:52.920 --> 0:11:55.240 companies some of those I mentioned, but you know, companies 0:11:55.320 --> 0:11:57.920 like Spanks for example, and Glossier for example, and the 0:11:57.960 --> 0:12:01.000 Mars Company for example, and Blackenedncker. 0:12:00.400 --> 0:12:01.760 All come into Shopify as well. 0:12:02.000 --> 0:12:04.160 At the same time, one of the other metrics that 0:12:04.200 --> 0:12:06.719 we really think a lot about is our product attach rate, 0:12:07.000 --> 0:12:09.280 and that really is a proxy for the usage of 0:12:09.320 --> 0:12:12.280 our products and platform buyer merchants. That's over three percent, 0:12:12.320 --> 0:12:14.680 so that means more merchants are taking more of our products, 0:12:14.800 --> 0:12:17.800 whether that's things like capital or shipping, or payments or 0:12:17.880 --> 0:12:20.520 even audiences for example. We like that, we like being 0:12:20.520 --> 0:12:23.040 the center of the business for these millions of stores, and. 0:12:23.040 --> 0:12:25.559 You managed this way bigger players and keep those smaller 0:12:25.559 --> 0:12:28.079 players at the same time as increasing pricing. I'm interested 0:12:28.080 --> 0:12:31.320 in how you are thinking about monetization going forward. 0:12:31.320 --> 0:12:31.600 Holly. 0:12:32.200 --> 0:12:35.160 Yeah, montation is something that we certainly in the last 0:12:35.280 --> 0:12:36.360 year and a half or so, I have been spending 0:12:36.360 --> 0:12:38.520 a lot more time thinking about. I've been at Shopify 0:12:38.559 --> 0:12:41.400 now for over a third of my life, almost fourteen 0:12:41.480 --> 0:12:44.520 years now, and we really never change pricing. We made 0:12:44.520 --> 0:12:46.800 our first change last year to our basic plan, which 0:12:46.920 --> 0:12:49.640 most merchants are using. We increased it by about a third, 0:12:49.679 --> 0:12:52.360 by but thirty three percent, and we saw very little pushback. 0:12:52.400 --> 0:12:54.680 And that sort of suggests to us that the value 0:12:54.720 --> 0:12:57.280 to cost ratio of Shopify is so far in the 0:12:57.280 --> 0:12:59.960 side of value, and so as we think about changing 0:13:00.040 --> 0:13:03.360 pricing across other products or even other plans, we want 0:13:03.360 --> 0:13:05.000 to be deliberate about it, but we believe that we 0:13:05.000 --> 0:13:06.960 still have an opportunity to increase pricing in the future. 0:13:07.800 --> 0:13:11.240 Holly, quickly, what's the AI story for Shopify? 0:13:12.320 --> 0:13:15.319 Yeah, Well, look, I think we are actually uniquely positioned 0:13:15.440 --> 0:13:18.400 to harness the power of AI. We think that particularly 0:13:18.440 --> 0:13:21.520 small businesses and entrepreneurs will really benefit from these tools. 0:13:21.760 --> 0:13:24.959 But unlike other generator of AI products, are AI product 0:13:24.960 --> 0:13:29.120 which is called Shopify Magic One. It's designed specifically for 0:13:29.200 --> 0:13:32.160 commerce and retail. But also it's not just one feature, 0:13:32.200 --> 0:13:34.719 one product. What we've done is we've embedded across all 0:13:34.760 --> 0:13:36.640 of our features and all of our workflows so that 0:13:36.720 --> 0:13:38.959 more people can start businesses and more people can be 0:13:39.000 --> 0:13:41.480 a lot more successful. And merchants are finding it to 0:13:41.520 --> 0:13:44.280 be really valuable. They spend more time making their products 0:13:44.320 --> 0:13:47.240 and less time doing some of the administrative tasks, which frankly, 0:13:47.320 --> 0:13:48.600 AI is really good at. 0:13:48.840 --> 0:13:52.080 Holly Finklestein, president of Shop five, Always greats. Catch up, 0:13:52.120 --> 0:13:52.559 Thank you. 0:14:00.240 --> 0:14:02.400 Welcome back to Bloomberg Technology. I'm Caroline had in New 0:14:02.440 --> 0:14:03.440 York and. 0:14:03.360 --> 0:14:05.920 I'm Ed Ludlow in San Francisco. Carra quit check in 0:14:05.960 --> 0:14:07.640 on the markets, and as you know, this week we're 0:14:07.720 --> 0:14:10.360 checking in on the European close. Given the time difference, 0:14:10.400 --> 0:14:12.800 the stock six hundred Europe, which is our main gauge 0:14:12.840 --> 0:14:15.400 of European equities, on track for a fourth straight gain 0:14:15.520 --> 0:14:17.600 or has closed now and hit a four straight day 0:14:17.640 --> 0:14:20.120 of gains, which is its longest streak of winds going 0:14:20.160 --> 0:14:22.080 back to July. A lot of the trading was around 0:14:22.080 --> 0:14:24.800 what was happening with the Fed last night, even though 0:14:24.920 --> 0:14:28.200 that's a different jurisdiction. Also the BOE, the Bank of England, 0:14:28.320 --> 0:14:32.200 keeping rates are unchanged and really talking down the prospect 0:14:32.240 --> 0:14:34.920 of further cuts. We just heard, of course on Bloomberg 0:14:34.960 --> 0:14:37.320 Television our interview with the Bank of England's governor. This 0:14:37.440 --> 0:14:39.200 is what the foot see one hundred looks like, up 0:14:39.240 --> 0:14:42.760 one point four percent on the day, Serling GBPUSD up 0:14:42.840 --> 0:14:45.000 to ten to four percent, and UK ten year yield 0:14:45.240 --> 0:14:47.920 soft for a little bit eleven basis points four point 0:14:48.120 --> 0:14:50.000 three eight percent. One more day in the week. We'll 0:14:50.000 --> 0:14:52.960 review that European market close update, Caroline. 0:14:52.960 --> 0:14:55.000 Meanwhile, let's just check in on how the US is performing. 0:14:55.040 --> 0:14:56.280 And I have to say it was rallying in the 0:14:56.320 --> 0:14:58.400 UK and we've been rallying worldwide today on the back 0:14:58.440 --> 0:15:01.720 of macropolicy. The Federal of course looking like it's done, 0:15:01.720 --> 0:15:05.360 perhaps with its really hawkish viewpoint on where rates have 0:15:05.440 --> 0:15:07.520 to go. Now sack at one point three percent. I'm 0:15:07.560 --> 0:15:09.760 shining a light, and what on earth is happening with Peloton, 0:15:09.840 --> 0:15:12.360 because of course it is, you know, a volatile stock. 0:15:12.400 --> 0:15:14.520 Nowaday is only worth five dollars when you're looking at 0:15:14.560 --> 0:15:18.880 it's per share price point twelve dollars, a twelve percent 0:15:18.960 --> 0:15:22.120 rally when we had been sinking hard after their numbers. 0:15:22.120 --> 0:15:23.400 This is all is really. 0:15:23.400 --> 0:15:25.520 They actually managed to beat in their fiscal first quart 0:15:25.720 --> 0:15:27.160 when it comes to revenue, when it comes to a 0:15:27.160 --> 0:15:28.480 bit darm when it comes to margin. 0:15:28.720 --> 0:15:30.720 But there is a slightly weak look ahead in. 0:15:30.720 --> 0:15:34.640 Terms of signaling what Bernstein is saying basically zero growth. 0:15:34.880 --> 0:15:36.400 So there's a bare narrative there. 0:15:36.440 --> 0:15:40.440 However, the first called Martin first quarter margins were particularly strong, 0:15:40.440 --> 0:15:41.160 says Bernstein. 0:15:41.720 --> 0:15:43.120 Nevertheless, kind of co ingenuity. 0:15:43.120 --> 0:15:45.920 For example of that particular analyst downgrading the stock to 0:15:45.920 --> 0:15:48.440 a price target of five versus eight dollars and cuts 0:15:48.440 --> 0:15:50.640 from a hold to a hold from a by So 0:15:50.960 --> 0:15:54.280 interesting narrative coming from Peloton. Bitcoin under pressure today even 0:15:54.280 --> 0:15:56.600 with the dollar weaker, So interesting selling of that particular 0:15:56.640 --> 0:15:57.320 with scasid d. 0:15:58.440 --> 0:16:01.200 All Right, another earnings one. We're watching Airbnb. Let's bring 0:16:01.240 --> 0:16:04.160 in more, get more with Bloomberg's Natali learning Natalie, I'm 0:16:04.160 --> 0:16:06.920 looking at shares with down more than three percent. This 0:16:07.120 --> 0:16:09.800 is the story of the world economy catching up with 0:16:09.880 --> 0:16:12.360 Airbnb a little bit in terms of the outlook that 0:16:12.400 --> 0:16:13.320 they gave us. 0:16:14.080 --> 0:16:19.240 Yes, So, in their fourth quarter outlook statement, they mentioned 0:16:19.400 --> 0:16:22.600 they saw some early volatility in the quarter. On their 0:16:22.600 --> 0:16:25.280 earnings call, they mentioned it was hard to pinpoint what 0:16:25.360 --> 0:16:29.560 exactly it was, but they pointed it to macro economic 0:16:29.800 --> 0:16:32.480 factors as well as political tensions. 0:16:33.080 --> 0:16:35.440 Leslie, we sit here in New York and what's been 0:16:35.480 --> 0:16:38.680 so interesting is the regulatory pressure that Airbnb is coming 0:16:38.760 --> 0:16:41.520 under in this particular city. Do they speak to that 0:16:41.600 --> 0:16:43.640 narrative just how much the business model is kind of 0:16:43.680 --> 0:16:45.800 being uphended at the moment right. 0:16:46.240 --> 0:16:49.600 Their take is that New York is like a smaller 0:16:49.640 --> 0:16:52.240 market right now for them, like around one percent of 0:16:52.280 --> 0:16:56.240 their revenue before the regulations kicked in. And their take 0:16:56.320 --> 0:16:58.720 is that over eighty percent of their top markets have 0:16:58.800 --> 0:17:02.680 been regulated. So they're still confident that with their business model, 0:17:02.720 --> 0:17:05.320 with supply of the listing still growing at a double 0:17:05.359 --> 0:17:05.920 digit rate. 0:17:06.320 --> 0:17:08.960 What was interesting also about Airbnb and its leadership was 0:17:09.000 --> 0:17:11.879 they didn't have to sort of make those painful announcements 0:17:11.880 --> 0:17:13.879 of job cuts when everyone else was they managed to 0:17:13.880 --> 0:17:16.359 steer the business remain lean. Are they going to have 0:17:16.440 --> 0:17:19.400 to think about that a little bit more with macroeconomic headwinds, 0:17:19.560 --> 0:17:22.679 with geopolitical tensions, with the old regulatory headwind here in 0:17:22.720 --> 0:17:23.480 the US. 0:17:23.480 --> 0:17:28.600 Right, a lot of analysts who have It's serrating at 0:17:28.600 --> 0:17:31.320 the highest number right now, and a lot of her 0:17:31.359 --> 0:17:36.240 are looking for long term growth catalysts, and this is 0:17:36.240 --> 0:17:38.880 why they are coming up with product updates to try 0:17:38.920 --> 0:17:42.840 to make the platform more reliable, getting continue hosting with 0:17:42.880 --> 0:17:45.840 them and also gets to continue booking with them. 0:17:46.520 --> 0:17:48.879 So the response is really key here. You know, the 0:17:48.920 --> 0:17:52.679 pandemic era, that behavior of consumers has changed. Stays of 0:17:52.720 --> 0:17:55.240 twenty eight days or more in focus. But next week 0:17:55.560 --> 0:17:57.480 we think we're going to get all kinds of new products. 0:17:57.480 --> 0:18:00.480 What does the future look like for Airbnb and Natalie. 0:18:00.200 --> 0:18:05.800 Right CEO Brian Cheskey says, they're laying the foundation for 0:18:05.840 --> 0:18:08.160 a lot of the new services that are coming out, 0:18:09.480 --> 0:18:13.880 whether it's using AI as a better matching service. All 0:18:14.680 --> 0:18:17.960 these updates are to you know, tell guests and hosts 0:18:18.000 --> 0:18:21.160 to keep you know, booking and using their platforms. 0:18:21.960 --> 0:18:24.600 Won't keep an eye on how those product anounments do 0:18:24.640 --> 0:18:27.000 you transpond Natalie Lung, We thank you for the inside 0:18:27.000 --> 0:18:30.040 track on Airbnb. Meanwhile, we've got more on earnings, etc. 0:18:30.280 --> 0:18:31.080 Of course came out. 0:18:31.280 --> 0:18:33.480 We want to bring in Punham, Gil from Bluebeg Intelligence 0:18:33.480 --> 0:18:33.879 and Punham. 0:18:33.960 --> 0:18:37.359 I'm so fascinated with ETC's numbers because we just spoke 0:18:37.400 --> 0:18:40.760 with the president of Shopify feeling very resilient about where 0:18:40.800 --> 0:18:44.120 a consumer is managing to be and really show path 0:18:44.119 --> 0:18:44.520 to growth. 0:18:44.560 --> 0:18:45.160 Why is etc. 0:18:45.359 --> 0:18:47.639