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Speaker 1: From Mahart where Innovation, Money and power Collie in Silicon

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Speaker 1: Vallet NBN.

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Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

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Speaker 3: Live from New York and San Francisco. This is Bloomberg

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Speaker 3: Technology coming up, Big Tech on Deck, Alphabet, AMD, Reddit

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Speaker 3: after the bell, will talk you through what to.

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Speaker 4: Expect and so Fi just came out with their own earnings.

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Speaker 4: This morning, We're gonna speak with the ceo.

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Speaker 3: OUs shares of Trump media surge again getting briefly suspended

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Speaker 3: amid the volatility. We discussed the election impact across assets,

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Speaker 3: but first we check on the markets and I daral

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Speaker 3: into what some say is indeed a Trump trade. Bitcoin

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Speaker 3: powering ever higher, up another three percent. In fact, we're

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Speaker 3: training at the highest since March of this year. What

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Speaker 3: happened in March of this year, a record high. We

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Speaker 3: clip the seventy four thousand number. Of course, we hit

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Speaker 3: just below that back in March of twenty twenty four.

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Speaker 3: We're up three percent, and all of this being thought

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Speaker 3: of is ultimately risk on many feeling that potentially this

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Speaker 3: is a signal of a Trump trade, but also option signaling. Look,

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Speaker 3: it's going to eighty thousand in November, no matter what

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Speaker 3: the election outcome.

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Speaker 5: But and you're looking at the.

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Speaker 4: Micro yeah, there's a lot of headlines that's hit in

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Speaker 4: the last hour or so. Tesla has seen a lot

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Speaker 4: of volatility. Elon Musk, speaking in Saudi Arabia at FII

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Speaker 4: and on the Trump trade, he said that actually, if

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Speaker 4: Trump gets to office, he's more optimistic his lofty goals

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Speaker 4: for SpaceX and Tesla will happen.

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Speaker 6: We'll get to that later in the program.

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Speaker 4: PayPal gave us guidance for the fourth quarter that missed expectations.

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Speaker 4: We will dig into that later in the show. The

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Speaker 4: stock on track for its biggest drop since February, and

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Speaker 4: big tech in ernest right, I think Alphabet, the parent

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Speaker 4: of Google, is the main focus. It's not just the

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Speaker 4: big AI name. But if you think about it in

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Speaker 4: the stock context, Caro, it's been disappointing.

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Speaker 6: For many investors.

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Speaker 4: They want signs that all the money being spent on

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Speaker 4: AI will translate that growth, particularly in cloud.

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Speaker 6: We should probably talk about that.

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Speaker 3: We should, and someone's been writing about exactly that, as

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Speaker 3: well as all the companies of course that are set

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Speaker 3: to report Reddit, AMD SNAP. We think of Google though

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Speaker 3: in particular as ed was laying out there, maybe just

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Speaker 3: trailing the magnificent seven piers because investors are trying to

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Speaker 3: struggle to price in antitrust risks and.

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Speaker 5: Many others that confront the company.

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Speaker 3: Rand Rastelca is the guy who's been across this and

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Speaker 3: that there has been the sideways movement of Alphabet's shares.

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Speaker 3: How are people trying to think about any rosiness from

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Speaker 3: the earnings dialing into the anti trust picture?

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Speaker 7: Good morning, Thanks for having me so, Yeah, those are

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Speaker 7: the two major issues people are focused on right now.

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Speaker 7: Most everyone I talked to remains pretty positive on Alphabet

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Speaker 7: as far as its fundamentals go. It's been showing improved

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Speaker 7: results in its cloud business. Advertising seems to be fairly strong,

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Speaker 7: which is of course key for the company search business.

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Speaker 7: But you do have the anti trust the regulatory picture.

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Speaker 7: There's been some rulings against the company and people aren't

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Speaker 7: quite yet sure how to you know, price this impact,

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Speaker 7: How severe is any punishment going to be? How long

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Speaker 7: is this going to remain in overhang on the shares?

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Speaker 7: What is the ultimate impact here? These are very unclear

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Speaker 7: right now, and that is something that is you know,

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Speaker 7: weighing on the stock right now. And kind of preventing

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Speaker 7: it from participating in the games that you've seen in

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Speaker 7: the other Max seven.

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Speaker 4: Stocks weighing on the stock and it could weigh at

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Speaker 4: the index level.

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Speaker 8: Right. You were writing over the.

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Speaker 4: Weekend about how profit expectations for those MAG seven names

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Speaker 4: reporting this week are still way beyond the S and

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Speaker 4: P five hundred overall, but I think we're on track

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Speaker 4: for our basically lowest quarter of VPS expansion in six

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Speaker 4: quarters or something like that.

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Speaker 7: How high is the bar? Like, how braced are we

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Speaker 7: for this week? Well, it's really a company by company

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Speaker 7: kind of thing. In general, Like you said, earnings growth

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Speaker 7: for the Max seven is extremely strong, much stronger than

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Speaker 7: the overall market. But we have seen a deceleration in growth.

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Speaker 7: And given how much these stocks have moved up this year,

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Speaker 7: you have some of the major index components, Apple, Microsoft,

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Speaker 7: and so forth. These names are prett expensive rolled up

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Speaker 7: to their history, which does suggest there is a high

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Speaker 7: bar here. You have slowing growth, high multiples that leaves

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Speaker 7: limited room for error.

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Speaker 4: All right, Bloombo's Ryan for Selica, You've got to check

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Speaker 4: out his reporting before, during, and after the big tech

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Speaker 4: earnings beat.

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Speaker 6: Thank you so much. Let's keep a conversation going with Jay.

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Speaker 4: Jacobs, head of Thematic and Active ETF at Black Rock,

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Speaker 4: which manages an astonishing eleven point five trillion dollars in

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Speaker 4: total for its clients, And same question to you. Alphabet's

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Speaker 4: one name, But if you think about the broad basket

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Speaker 4: of AI, hyperscaler, software, hardware, chip names that you track,

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Speaker 4: how braced are you for this week starting with Google?

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Speaker 7: Well, we're looking much further than just individual names. We

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Speaker 7: have identified artificial intelligence and digital disruption is a multi year,

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Speaker 7: if not multi decade, mega force that's going to have

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Speaker 7: a tremendous impact on the economy and markets. So while

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Speaker 7: earnings might have some directional information on how some of

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Speaker 7: this investment from hyperscalers are going with the adoption of

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Speaker 7: artificial intelligence, we're really looking three, five, ten years out

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Speaker 7: to see the landscape shifting impact of artificial intelligence on

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Speaker 7: the economy.

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Speaker 4: Jay Caro and I like looking to the horizon as

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Speaker 4: much as anyone else. But when the hyperscalers talk about CAPEX,

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Speaker 4: the market responds in all sorts of ways. You must

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Speaker 4: be a little bit excited or a little bit nervous

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Speaker 4: about the next twenty four hours.

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Speaker 7: Well, I think What will be interesting about all of

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Speaker 7: this CAPEX, which could be almost a quarter of a

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Speaker 7: trillion dollars, is that money is being spent on semiconductor companies.

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Speaker 7: It's being spent on data centers, it's being spent on

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Speaker 7: power infrastructure, and in some of our actively managed strategies

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Speaker 7: like BAI, which just launched a few days ago. It's

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Speaker 7: really looking at that infrastructure layer of artificial intelligence, where

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Speaker 7: all that CAPEX money is being spent to take advantage

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Speaker 7: of the revenue opportunities that we see today in artificial intelligence.

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Speaker 3: It's interesting over in Saudi Arabia, many tech leaders, finance

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Speaker 3: leaders are speaking Massa Yoshisan, one of them talking about

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Speaker 3: how Nvidia is undervalued.

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Speaker 5: Now, Jay, I know you've thought a lot.

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Speaker 3: About ultimately the investment in the picks and shovels. Are

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Speaker 3: we too obsessed with one or two names? Do we

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Speaker 3: need to broaden out?

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Speaker 6: I think we are.

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Speaker 7: This is a much bigger story than just the mag

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Speaker 7: seven and just a handful of names and artificial intelligence.

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Speaker 7: We really look across the entire AI value chain or

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Speaker 7: the AI tech stack to find opportunities. I would really

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Speaker 7: bucket this in three layers. There's the AI infrastructure layer

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Speaker 7: that I just mentioned. That's about the semiconductors, that's about

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Speaker 7: the power infrastructure, It's about the data centers that are

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Speaker 7: providing that physical backbones artificial intelligence. The mid layer has

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Speaker 7: also gotten a fair amount of attention. That's where the models,

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Speaker 7: these large language models live, where a lot of the

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Speaker 7: proprietary data lives. But then on top of that is

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Speaker 7: the applications layer, and this is where we could see

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Speaker 7: some of the most significant growth over the long term,

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Speaker 7: which is really what are the companies that are embracing

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Speaker 7: artificial intelligence to build revolutionary products and Apple cations.

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Speaker 6: And I think if you.

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Speaker 7: Look across that AI tech stack, there's a lot of

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Speaker 7: opportunity that goes far beyond just the mag seven and

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Speaker 7: that's why we believe active management can be really powerful

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Speaker 7: and artificial intelligence to pick and choose those opportunities.

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Speaker 3: Let's talk there for about some of the latest CTF

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Speaker 3: you've launched and those within them to give the exposure.

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Speaker 3: How broad are the names and how geographically broad are

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Speaker 3: they as well?

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Speaker 5: Is it all about the US?

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Speaker 7: So if you look at BAI, which is our Artificial

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Speaker 7: Intelligence and Technology Actively Managed GTF, it is largely focused

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Speaker 7: on the digital infrastructure layer right now, that's where we

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Speaker 7: see some of the most immediate opportunity because of all

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Speaker 7: of that capex spending by the hyperscalers. That's where the

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Speaker 7: flows of dollars are going today and therefore kind of

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Speaker 7: the most concrete part of the artificial intelligence opportunity. But

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Speaker 7: it is a highly concentrated portfolio. It really only has

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Speaker 7: about thirty four companies in it. That is our portfolio

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Speaker 7: managers really taking high conviction bets on which parts of

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Speaker 7: AI are going to.

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Speaker 4: Succeed, and so by compared Garrison, TEK is broad is

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Speaker 4: still right because you have the full spectrum of software

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Speaker 4: through too hardware, even the semiconductor names in there. What

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Speaker 4: I always think about JAY is like, take the semiconductor

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Speaker 4: space right in the context of AI accelerators, Nvidia, Intel

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Speaker 4: and am D all compete with one another, but they

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Speaker 4: will see this very expansive and enduring market. Why is

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Speaker 4: the function of an ETF important to get the full

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Speaker 4: benefit of that?

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Speaker 7: Well, because this is again this says about an entire

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Speaker 7: value chain of opportunity. On one hand, you want high

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Speaker 7: conviction picks and the names that are going to win,

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Speaker 7: but at the same time, it's not about one or

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Speaker 7: two stocks in artificial intelligence, we believe the whole basket

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Speaker 7: of stocks is going to benefit in the ETF like

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Speaker 7: BAI delivers that very efficiently to investors.

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Speaker 3: Jay, you've spelled out your long term viewpoint. But in

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Speaker 3: the short term we have earnings. We also have an

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Speaker 3: election in the US. From your perspective, is that a

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Speaker 3: moment to actively invest to change up the portfolio.

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Speaker 7: It can certainly introduce some volatility or uncertainty into the portfolio.

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Speaker 7: But again, if we're looking thematically at artificial intelligence, this

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Speaker 7: is an area where we see, you know, this is

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Speaker 7: longer than an election. This is longer than just the

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Speaker 7: next four years. Even this is something that's going to

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Speaker 7: play out over multiple decades. So near term volatility is

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Speaker 7: really less important to thematic investors than what is the

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Speaker 7: trajectory of artificial intelligence over the next several years, which

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Speaker 7: we remain very bolish on.

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Speaker 3: J Jacobs moaning British heado thematic and active ETFs at

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Speaker 3: black Plock, We thank you. Coming up, we'll take a

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Speaker 3: look at the volatility around Trump media shares, so push

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Speaker 3: ever higher this morning. The details and where you're looking

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Speaker 3: at well.

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Speaker 4: Elon Musk participated in a surprise conversation at the Future

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Speaker 4: Investment Initiative taking place in Riard to discuss the future

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Speaker 4: of AI solar energy, but also why he thinks AMA's

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Speaker 4: launch for Starship is more likely under a Trump presidency.

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Speaker 6: Listen to this.

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Speaker 2: I feel more optimistic about it with a Trump White

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Speaker 2: House and an point House because the biggest impedimental progress

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Speaker 2: that we're experiencing is regulatory is over regulation.

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Speaker 4: Shares of Trump Media, the operator of the True Social site,

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Speaker 4: were suspended earlier today after they rose as much as

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Speaker 4: twenty one percent in pre market trading.

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Speaker 6: Trading later resumed. What's going on, Let's.

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Speaker 4: Bring in Bloomberg's baby Lipshaltz. I think we get this

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Speaker 4: idea that there's this thing called the Trump Trade and

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Speaker 4: that DJT because it's the parent company of Trump's social

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Speaker 4: media platform, Truth Social, is a part of that. But

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Speaker 4: explain the specificity of what happened this morning. I don't

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Speaker 4: get it.

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Speaker 9: Well, nothing makes sense and meanwhay.

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Speaker 10: So you have to go in understanding and acknowledging that

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Speaker 10: the thing with Trump Media shares, given the fact that

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Speaker 10: Donald Trump owns more about sixty percent of the stock,

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Speaker 10: is that it typically trades closely with the betting odds.

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Speaker 10: So we've been tracking a number of betting markets that

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Speaker 10: have been shifting up into the right for Donald J.

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Speaker 9: Trump to return to the White House.

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Speaker 10: What we saw today with some of those volatility halls

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Speaker 10: by Mike count it was about five of them to

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Speaker 10: the up and downside is just simply an overwhelming amount

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Speaker 10: of activity and volatility. We saw volumes about six times

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Speaker 10: of what's normal in the first hour. So when you

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Speaker 10: see investors, whether that's retail traders who are pushing their

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Speaker 10: investments on things like Reddit or True Social itself, or

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Speaker 10: Wall Street professionals or even just auctions traders, that's what

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Speaker 10: we can see with some of these wild swings to

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Speaker 10: the up and downside, and just looking at today, it's

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Speaker 10: really emblematic of what we've been tracking. When you even

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Speaker 10: look back to when this spec deal was announced back

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Speaker 10: in October twenty twenty one, it.

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Speaker 5: Has generally been up into the right. Even if there

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Speaker 5: is volatility on an industry basis.

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Speaker 3: What two hundred and seventy two percent at least was

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Speaker 3: the number we counted yesterday over the last five trading weeks,

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Speaker 3: is it really the eye of the storm when it

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Speaker 3: comes to the so called Trump trade. What are the

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Speaker 3: names have been evolved in?

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Speaker 10: Meanwhile, it's the biggest one to keep an eye on,

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Speaker 10: and it is really the most indicative. Obviously, it trades

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Speaker 10: under DJT. That's Trump's initials, so the ticker symbol is

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Speaker 10: actually that closely tied in a line with the former president.

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Speaker 9: We also keep an eye on Rumble.

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Speaker 10: They're a Peter telbacked video platform, typically skewing towards a

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Speaker 10: more conservative audience, trying to also rally against big tech.

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Speaker 10: The company is also in partnerships with Trump Media itself.

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Speaker 10: We keep an eye on Funware, which really seems to

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Speaker 10: be more of, at least when I talk to investors,

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Speaker 10: more of a gambling mechanism. It was associated with some

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Speaker 10: of the past Trump campaigns, though doesn't appear to be

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Speaker 10: tied towards the twenty twenty four re election campaign, but

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Speaker 10: that also has gotten swept up in the shift as well.

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Speaker 4: Bailey, you wrote a story on October twenty fifth, which

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Speaker 4: I appreciate seems like an eternity ago now that basically,

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Speaker 4: if Trump wins, it's hard to see what happens next

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Speaker 4: with True Social and DJT. But I think you were

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Speaker 4: talking more about its business, Like, what do we know

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Speaker 4: about this company as a company.

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Speaker 10: It operates and owns True Social, an X lookalike platform

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Speaker 10: that is one of the many kind of places that

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Speaker 10: Donald Trump will post.

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Speaker 9: We do know ed in the first.

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Speaker 10: Half they reported just about one point six million dollars

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Speaker 10: in sales, so not profitable. One point six million in

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Speaker 10: sales or revenue is a drop in the bucket relative

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Speaker 10: to its multi billion dollar market evaluation. It has struggled

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Speaker 10: to retain users. We've seen that with third party apps.

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Speaker 10: The company doesn't actually disclose those metrics. We will be

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Speaker 10: closely keeping an eye on their third quarter results, which

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Speaker 10: should be coming in the next few weeks, just in

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Speaker 10: terms of what activity or at least what ad sales

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Speaker 10: look like going into the election. But when I talk

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Speaker 10: to some skeptics that they really call out the fact

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Speaker 10: that all eyes right now are on Trump's re election campaign.

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Speaker 10: So if the company is struggling to get anywhere near

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Speaker 10: training a profit and only had one point six million

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Speaker 10: dollars in first half sales, the question going forward is

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Speaker 10: how does that actually grow?

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Speaker 5: Bailey Lipshaw's we appreciate it, thank you.

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Speaker 3: Let's stick with politics because Jeff Bezos defended The Washington

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Speaker 3: Post's decision to stop endorsing presidential candidates, saying there was

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Speaker 3: a quote credibility gap afflicting the media industry and that

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Speaker 3: endorsing a candidate would create a perception of bias, and

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Speaker 3: the move by the billionaire owner of The Washington Post

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Speaker 3: prompted as many as two hundred thousand subscribers to cancel.

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Speaker 3: That's according to MPR. Bloomberg's Mike Shepherd joins us to discuss,

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Speaker 3: and Mike, I know you have a history what the

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Speaker 3: Washington Post yourself, and just take us back in history.

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Speaker 3: How long have they been saying that they support certain candidates.

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Speaker 8: Well, first my own history.

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Speaker 11: I did work at the Washington Post for twenty two

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Speaker 11: years before joining Bloomberg in twenty eleven. So we do

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Speaker 11: have some long standing ties to that newsroom and a

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Speaker 11: lot of the good people that work there. And the

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Speaker 11: history that the moss with endorsing candidates goes all the

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Speaker 11: way back to when Jimmy Carter ran for the presidency.

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Speaker 11: So there is a history and a tradition. And one

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Speaker 11: of the concerns among people who are close to the

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Speaker 11: newsroom and even outside observers is that this carries the appearance,

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Speaker 11: eleven days before the election, of not just stopping the

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Speaker 11: practice of endorsements, but spiking an editorial that was intended

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Speaker 11: to endorse Kamala Harris for the presidency. And this carries

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Speaker 11: the appearance of doing exactly what Jeff Bezos is trying

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Speaker 11: to avoid, or at least as he explained it during

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Speaker 11: in his article yesterday.

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Speaker 4: Mike, just the basics here of why we're talking about this.

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Speaker 4: Jeff Bezos the founder of Amazon, a high profile, an

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Speaker 4: incredibly rich person in the world of technology, and he

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Speaker 4: owns the Washington Post. Just take those basic facts and

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Speaker 4: explain the significance of this action.

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Speaker 11: Well, the signific against cannot be overstated. And it is

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Speaker 11: yet another twist and an election that has had a

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Speaker 11: historic number of surprises already. And it even caught the

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Speaker 11: attention of Kamala Harris this morning. She was interviewed on

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Speaker 11: the Breakfast Club syndicated radio program, calling it disappointing, but

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Speaker 11: then also tying Jeff Bezos, the world's second second richest

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Speaker 11: man after Elon Musk, to Donald Trump and other billionaires, saying, look,

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Speaker 11: these are the people, the billionaires that Donald Trump is

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Speaker 11: more likely to support. Rather than mainstream Americans. And we

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Speaker 11: do see our own analysis here at Bloomberg indicates that

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Speaker 11: more billionaires have donated toward the Trump candidacy than non billionaires. Now,

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Speaker 11: when it comes to the tech industry, we do see

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Speaker 11: a little bit of a reversal of polarity. We do

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Speaker 11: see more of the wealthy tech founders, especially people like

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Speaker 11: Eric Schmidt and Bill Gates. They have thrown their lot

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Speaker 11: in with Kamala Harris, but overall, Harris is using this

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Speaker 11: moment to point to what she sees as billionaires leaning

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Speaker 11: toward Donald Trump.

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Speaker 3: One billionaire just name checking Donald Trump over in Saudi Arabia,

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Speaker 3: a live stream of Ela Masque, just speak to the

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Speaker 3: impact that he's making.

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Speaker 11: Mike Well, his impact on the race cannot be overstated. First,

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Speaker 11: it's financial. He has put more than one hundred and

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Speaker 11: thirty two million dollars of his own money into a

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Speaker 11: superpack that is backing Donald Trump.

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Speaker 8: But he is also putting in something.

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Speaker 11: That's very precious for a guy who's running five companies,

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Speaker 11: and that is time. He has spent time on the

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Speaker 11: campaign trail in Pennsylvania and other states. He has been

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Speaker 11: with Donald Trump, including at the event in New York

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Speaker 11: at Madison Square Garden on Sunday, and he is seeing

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Speaker 11: in Donald Trump as he is seeing Donald Trump as

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Speaker 11: someone who can clear the path for some of his

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Speaker 11: own ventures and his own aspirations, including a trip to Mars.

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Speaker 11: And the President is being present former President Trump as

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Speaker 11: if he were to make a return to office, someone

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Speaker 11: who can clear the path when it comes to regulations.

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Speaker 4: Yeah, that's the soundbit that we played early to Stay

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Speaker 4: of Blowburg's Michael Shepard. Thank you very much. It's time

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Speaker 4: for talking tech and first start. Indian food delivery platform

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Speaker 4: Swiggy is seeking to sell shares for an IPO that

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Speaker 4: may raise one point three five billion dollars.

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Speaker 6: According to sources, The IPO will open for.

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Speaker 4: Bids from November sixth and shares he expected to start

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Speaker 4: trading from November thirteen. Swingy's IPO follows Hyundai India's recent

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Speaker 4: record sale. Plus, Toshiba wants to reach double digit market

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Speaker 4: share in the world's power chip market by twenty thirty

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Speaker 4: as it lags behind rivals.

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Speaker 6: Toshiba may eventually form.

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Speaker 4: An alliance of companies that would corner thirty percent of

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Speaker 4: the industry. According to one of his executives and over

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Speaker 4: in Japan, Liberal Democratic Party heavyweight Akira Amari was defeated

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Speaker 4: in the general election. It removes one from parliament, one

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Speaker 4: of the chip sector's biggest advocates, while concerns have been

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Speaker 4: growing over the amount of taxpayer money getting plowed into

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Speaker 4: that industry.

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Speaker 8: Of caroline.

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Speaker 3: In other international chip news and the Biden administration finalized

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Speaker 3: restrictions on investments by US individuals and companies into Chinese technology,

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Speaker 3: including semiconductors, quantum computing, artificial intelligence. Of course, Bloomberg's Mackenzie

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Speaker 3: Hawkins is here with more and this was long in

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Speaker 3: the making.

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Speaker 5: Just what is new in terms of these policies.

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Speaker 12: So this is sort of the last big shoot to

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Speaker 12: drop from the Biden Administration's restrictions on Chinese advanced tech development.

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Speaker 12: We've said a lot of time on the show talking

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Speaker 12: about export controls, restrictions on the sale of actual chips

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Speaker 12: and ship making components to companies in China. This is

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Speaker 12: restrictions on investments by American individuals and companies into Chinese

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Speaker 12: AI chip and quantum computing companies. The rules have been

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Speaker 12: in the works for over a year. There was originally

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Speaker 12: fears that the investment restrictions would cover a broader swath

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Speaker 12: of industries, but officials say they're aiming for a narrowly

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Speaker 12: targeted approach looking at technologies that are key to US

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Speaker 12: and Chinese national security.

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Speaker 4: It's been some time, I think, since we've discussed the

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Speaker 4: sector in these terms. But the target is American mutual funds,

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Speaker 4: large venture capital firms, other technology companies that want to

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Speaker 4: get a placehold on some of China's tech. Right, I'm

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Speaker 4: trying to understand McKenzie, who would be subject to these controls?

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Speaker 11: Right?

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Speaker 12: So there are exemptions for certain types of investments, such

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Speaker 12: as publicly traded securities or certain limited partner investments, but

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Speaker 12: the goal is really to capture American capital and then

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Speaker 12: know how that officials say comes with American capital going

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Speaker 12: into early stage investments in Chinese startups. So, you know,

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Speaker 12: officials brief reporters on there were frictions before they were

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Speaker 12: formally announced, and they pointed to a report by a

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Speaker 12: think tank based here which found that between twenty fifteen

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Speaker 12: and twenty twenty one, of all of the global transactions

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Speaker 12: investing in Chinese AI companies, seventeen percent involved American investors,

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Speaker 12: and of that around nine and ten were at the

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Speaker 12: venture capital stage. So that's the type of investment that

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Speaker 12: officials are aiming to capture with these rules.

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Speaker 3: The Chinese Foreign Ministry spokesman saying his nation strongly deplodes,

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Speaker 3: infirmly rejects these new US restrictions. They didn't come into

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Speaker 3: force briefly until January the second.

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Speaker 5: Is there any way that these could be subject to change? Mackenzie?

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Speaker 12: So this is sort of the last leg of what

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Speaker 12: has been a very long rulemaking process, and this is

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Speaker 12: a final rule. So it's highly, highly unlikely that things

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Speaker 12: would change between now and January. Tewod. They wouldn't only

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Speaker 12: investments going forward.

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Speaker 5: It's not a retroactive policy, Megs.

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Speaker 3: Mackenzie Holkins. Wait, thank you, Welcome back to Blue Meg Technology.

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Speaker 3: I'm Caroline Hyde in.

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Speaker 6: New York and I'm me d love Lo in San Francisco.

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Speaker 3: Quick check on these markets, because while we're pushing higher

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Speaker 3: on the Nastack and then Astak one hundred, we're up

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Speaker 3: about five ten percent now, so near trading highs of

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Speaker 3: the day and in fact training highs. Ever, because we

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Speaker 3: are close about two hundred points on the NASAK one

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Speaker 3: hundred to its record high set back in July.

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Speaker 5: So we keep an eye on those numbers.

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Speaker 3: We want to dig into some of the individual movers

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Speaker 3: because we are thick and fast and earning season and

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Speaker 3: really Cadence Design Systems doing particularly well, having its best

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Speaker 3: day since March of twenty twenty, up eleven percent. It's

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Speaker 3: numbers coming in strong, it's revenue posting growth of about

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Speaker 3: nineteen percent, and it's all about Cadence dot AI basically

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Speaker 3: in the design workflow artificial intelligence now integral, says the CEO.

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Speaker 5: We're seeing AMD.

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Speaker 3: We're going to see the numbers after the bell, and look,

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Speaker 3: we're pretty buoyant and running into them more than two

441
00:22:49,200 --> 00:22:52,520
Speaker 3: percent higher. The question is AI accelerators. Are they managing

442
00:22:52,560 --> 00:22:54,960
Speaker 3: to make inroads on Nvidia and how much of the

443
00:22:54,960 --> 00:22:56,600
Speaker 3: market share and they manage to take from the likes

444
00:22:56,640 --> 00:22:58,560
Speaker 3: of Intel. When it comes to the BC and it

445
00:22:58,560 --> 00:23:01,679
Speaker 3: comes to as the server business, PayPal look disappoints, even

446
00:23:01,720 --> 00:23:03,720
Speaker 3: though we saw the third quarter fiscal third quarter do

447
00:23:03,760 --> 00:23:06,960
Speaker 3: well in terms of profits on the revenue forecast, disappointed

448
00:23:07,080 --> 00:23:09,640
Speaker 3: and the shares have run up into these earnings well

449
00:23:09,720 --> 00:23:10,639
Speaker 3: by about five percent.

450
00:23:10,720 --> 00:23:10,800
Speaker 11: Ed.

451
00:23:10,840 --> 00:23:11,720
Speaker 6: What have you got?

452
00:23:12,040 --> 00:23:15,159
Speaker 4: Some other headlines in the last thirty minutes. Apples overhauled

453
00:23:15,160 --> 00:23:18,439
Speaker 4: the design of its Mac Mini desktop computer for the

454
00:23:18,440 --> 00:23:22,040
Speaker 4: first time in about fifteen years, cutting the device's size

455
00:23:22,200 --> 00:23:25,560
Speaker 4: to five inches across and adding a Speedia M four

456
00:23:25,640 --> 00:23:28,560
Speaker 4: chip series doing Bose Mark German joins us in San Francisco.

457
00:23:28,800 --> 00:23:31,679
Speaker 4: This is kind of consistent, right with what Apple is

458
00:23:31,680 --> 00:23:35,560
Speaker 4: doing with new gen of different hardware, platform size and

459
00:23:35,600 --> 00:23:36,919
Speaker 4: then updating the processor.

460
00:23:37,200 --> 00:23:37,919
Speaker 6: What else do we know?

461
00:23:38,200 --> 00:23:39,240
Speaker 8: Yeah, it's quite interesting.

462
00:23:39,280 --> 00:23:41,400
Speaker 13: So last year this time they held an event called

463
00:23:41,440 --> 00:23:44,800
Speaker 13: Scary Fast timed around Halloween. They launched the three new chips,

464
00:23:44,800 --> 00:23:46,400
Speaker 13: a bunch of new Macs, but it was a thirty

465
00:23:46,440 --> 00:23:49,560
Speaker 13: minute kino and it's sort of disappeared, as you will,

466
00:23:49,600 --> 00:23:52,520
Speaker 13: on Halloween right after that. This time around, they're doing

467
00:23:52,600 --> 00:23:55,359
Speaker 13: three launches three days in a row. Yesterday Monday was

468
00:23:55,359 --> 00:23:57,960
Speaker 13: the iMac with the M four, Today is the Mac

469
00:23:58,040 --> 00:24:00,640
Speaker 13: Mini with the M four and M four Pro. Tomorrow

470
00:24:00,720 --> 00:24:02,960
Speaker 13: will be the new MacBook pros at the M four,

471
00:24:03,160 --> 00:24:05,360
Speaker 13: M four Pro and M four Max. This new Mac

472
00:24:05,400 --> 00:24:08,479
Speaker 13: Mini looks extremely impressive. It's probably the most impressive new

473
00:24:08,480 --> 00:24:10,920
Speaker 13: mac that I've seen from them since the current MacBook

474
00:24:10,920 --> 00:24:14,320
Speaker 13: Pro design launched three years ago. Two inches tall, five

475
00:24:14,359 --> 00:24:19,040
Speaker 13: inches across, super cool, super powerful two ports on the front,

476
00:24:19,080 --> 00:24:20,120
Speaker 13: now matching the Mac.

477
00:24:20,000 --> 00:24:21,840
Speaker 6: Studio as you reported, would be the case.

478
00:24:22,320 --> 00:24:24,720
Speaker 13: I think this is going to be a very hot seller.

479
00:24:24,760 --> 00:24:27,440
Speaker 13: People like to use these to connect them to TVs

480
00:24:28,119 --> 00:24:30,959
Speaker 13: gaming setups, and they're also extremely popular in the enterprise

481
00:24:31,000 --> 00:24:33,120
Speaker 13: and in server environment. So this is a nice launch

482
00:24:33,119 --> 00:24:34,040
Speaker 13: for Apple, a.

483
00:24:34,119 --> 00:24:37,360
Speaker 3: Nice launch and necessary when you're baking in the markets

484
00:24:37,400 --> 00:24:40,320
Speaker 3: expectations to growth at this company. We had key Bank,

485
00:24:40,400 --> 00:24:43,240
Speaker 3: the analyst there last week saying, look, we very rarely

486
00:24:43,280 --> 00:24:46,880
Speaker 3: have geographical growth and every product growing in terms of revenue,

487
00:24:47,080 --> 00:24:49,359
Speaker 3: but the market seems to be baking that in mark How.

488
00:24:49,320 --> 00:24:50,960
Speaker 5: Likely is it that we're going to see such growth

489
00:24:50,960 --> 00:24:51,560
Speaker 5: do you think.

490
00:24:52,040 --> 00:24:53,960
Speaker 13: Well, well, the Mac Mini is only going to be

491
00:24:53,960 --> 00:24:55,479
Speaker 13: a very incremental part of that.

492
00:24:55,560 --> 00:24:55,760
Speaker 8: Right.

493
00:24:55,800 --> 00:24:59,359
Speaker 13: They'll generate sales here, but probably they'll sell maybe a

494
00:24:59,400 --> 00:25:03,040
Speaker 13: billion dollar worth of these tops through the end of

495
00:25:03,080 --> 00:25:05,840
Speaker 13: the year, maybe even a little bit less than that.

496
00:25:05,960 --> 00:25:08,920
Speaker 13: So this is not a super material.

497
00:25:08,480 --> 00:25:09,160
Speaker 8: Launch for them.

498
00:25:09,480 --> 00:25:11,760
Speaker 13: It's really a cool launch that gets people in the

499
00:25:11,800 --> 00:25:15,080
Speaker 13: Mac community really interested. It sets up the design for

500
00:25:15,119 --> 00:25:17,520
Speaker 13: this product, hopefully not for the next fifteen years like

501
00:25:17,520 --> 00:25:20,879
Speaker 13: the last design, but certainly this is a nice launch

502
00:25:20,920 --> 00:25:24,080
Speaker 13: for them. But it's not important from a financial standpoint,

503
00:25:24,760 --> 00:25:27,840
Speaker 13: like let's say a new iPhone or iPad mark.

504
00:25:27,880 --> 00:25:31,680
Speaker 4: Overnight, our colleagues in India reported some interesting numbers about

505
00:25:31,680 --> 00:25:35,199
Speaker 4: exports from that country for Apple, So not necessarily the

506
00:25:35,320 --> 00:25:38,200
Speaker 4: end market, but what they're doing there and then selling

507
00:25:38,280 --> 00:25:38,720
Speaker 4: to the world.

508
00:25:38,800 --> 00:25:39,280
Speaker 6: What do we know?

509
00:25:39,640 --> 00:25:42,680
Speaker 13: India's becoming an increasingly important part of the overall Apple

510
00:25:42,720 --> 00:25:45,719
Speaker 13: story in terms of production and in terms of sales.

511
00:25:45,800 --> 00:25:47,520
Speaker 13: I think you're a one day going to see more

512
00:25:47,560 --> 00:25:50,320
Speaker 13: product development happen there as well if you have some

513
00:25:50,480 --> 00:25:54,280
Speaker 13: engineering labs, particularly for maps testing there as well. So

514
00:25:54,359 --> 00:25:57,479
Speaker 13: India is incrementally becoming a bigger part of the Apple story.

515
00:25:57,840 --> 00:26:01,160
Speaker 13: I don't think they're ever going to drop China totally,

516
00:26:01,320 --> 00:26:04,440
Speaker 13: but they're inching towards India becoming the new China.

517
00:26:05,000 --> 00:26:08,280
Speaker 3: Al German, we thank you. Let's turn our attention to

518
00:26:08,359 --> 00:26:11,600
Speaker 3: Netflix now. It's in talks to release Gretagog's upcoming remake

519
00:26:11,640 --> 00:26:15,520
Speaker 3: of the Chronicles of Narnia on Imax screams globally. This

520
00:26:15,600 --> 00:26:18,240
Speaker 3: would be one of these streaming platform's biggest business deals

521
00:26:18,240 --> 00:26:18,840
Speaker 3: with cinemas.

522
00:26:18,840 --> 00:26:21,399
Speaker 5: According to sources. Let's bring in mus Lucas.

523
00:26:21,200 --> 00:26:24,320
Speaker 3: Shore and they have done it before, but this would

524
00:26:24,400 --> 00:26:27,640
Speaker 3: once again be sort of an interesting area for them

525
00:26:27,640 --> 00:26:28,720
Speaker 3: to push.

526
00:26:29,080 --> 00:26:32,440
Speaker 14: Yeah, like Netflix has largely embraced movie theaters when they

527
00:26:32,480 --> 00:26:35,000
Speaker 14: have worked with filmmakers that want that. Think about Martin

528
00:26:35,000 --> 00:26:38,040
Speaker 14: Scorsese with The Irishman or Alfonso Corone with Roma.

529
00:26:38,520 --> 00:26:39,520
Speaker 8: You know this is no different.

530
00:26:39,560 --> 00:26:41,760
Speaker 14: Greta Gerwig coming off of Barbie has a lot of

531
00:26:41,920 --> 00:26:45,040
Speaker 14: clout in the Hollywod community. Netflix was very excited to

532
00:26:45,119 --> 00:26:47,560
Speaker 14: get her to adapt the sort of legendary series of

533
00:26:47,640 --> 00:26:50,639
Speaker 14: children's books. But she wants to see those movies in theaters,

534
00:26:50,680 --> 00:26:52,760
Speaker 14: and so Netflix is going to try to work with

535
00:26:52,800 --> 00:26:56,600
Speaker 14: her without sort of violating its beliefs about putting movies

536
00:26:56,800 --> 00:26:59,399
Speaker 14: in its on its screens and on as streaming service

537
00:26:59,680 --> 00:27:00,960
Speaker 14: prompt for its customers.

538
00:27:01,880 --> 00:27:03,800
Speaker 4: Lucas, I don't think we've ever had the chance to

539
00:27:03,840 --> 00:27:07,920
Speaker 4: discuss this with you, but basically, how does Hollywood see.

540
00:27:07,720 --> 00:27:11,440
Speaker 6: Netflix in this field of like big fiction?

541
00:27:12,200 --> 00:27:15,280
Speaker 4: I think about Rebel Moon and Atlas Jennifer Lopez, like,

542
00:27:15,320 --> 00:27:18,880
Speaker 4: personally those were great, but I guess they want big

543
00:27:18,960 --> 00:27:23,080
Speaker 4: hits the world over Narnia.

544
00:27:23,160 --> 00:27:25,840
Speaker 8: Well, Atlas actually was a reasonable hit.

545
00:27:25,960 --> 00:27:28,080
Speaker 14: I mean I think, yeah, you're right that Netflix has

546
00:27:28,119 --> 00:27:30,720
Speaker 14: tried a lot with these sort of world building science

547
00:27:30,760 --> 00:27:34,639
Speaker 14: fiction projects, largely because it doesn't sit on a trove

548
00:27:34,680 --> 00:27:37,960
Speaker 14: of historical intellectual property like Disney and Warner Brothers and

549
00:27:38,000 --> 00:27:40,320
Speaker 14: other studios do, so it's had to invest a lot

550
00:27:40,359 --> 00:27:43,879
Speaker 14: more in original properties when it has gone outside of

551
00:27:43,880 --> 00:27:46,080
Speaker 14: that and tried to buy ip that it could use,

552
00:27:46,119 --> 00:27:47,840
Speaker 14: like it did a deal with the did a deal

553
00:27:47,840 --> 00:27:48,480
Speaker 14: with a royal doll.

554
00:27:48,800 --> 00:27:51,200
Speaker 8: Now it's not this Narnia. I mean, look, it could work.

555
00:27:51,359 --> 00:27:51,840
Speaker 8: I don't know.

556
00:27:51,920 --> 00:27:54,280
Speaker 14: Their track record on the quality of those movies, I'd

557
00:27:54,280 --> 00:27:57,320
Speaker 14: say is sort of mid to poor, but people do

558
00:27:57,440 --> 00:27:59,840
Speaker 14: tend to watch them, just because people watch whatever's on

559
00:28:00,040 --> 00:28:02,840
Speaker 14: Netflix that has a big budget Netflix puts in front

560
00:28:02,840 --> 00:28:03,840
Speaker 14: of them.

561
00:28:04,000 --> 00:28:07,359
Speaker 3: Well said, it's interesting what they lose because of not

562
00:28:07,400 --> 00:28:11,240
Speaker 3: always going for the big screen. Emerald Fanal for example,

563
00:28:11,240 --> 00:28:12,320
Speaker 3: Hernie Wuthering Heights.

564
00:28:12,600 --> 00:28:13,280
Speaker 5: They didn't want to.

565
00:28:13,280 --> 00:28:16,480
Speaker 3: Go in Netflix because of this. So is IMAX going

566
00:28:16,480 --> 00:28:18,359
Speaker 3: to satisfy Greta Gerwig?

567
00:28:18,359 --> 00:28:18,800
Speaker 5: Do you think?

568
00:28:19,960 --> 00:28:20,160
Speaker 8: Yeah?

569
00:28:20,200 --> 00:28:23,200
Speaker 14: I think it'll satisfy her for this project.

570
00:28:23,520 --> 00:28:25,320
Speaker 8: You know, I don't think Greta.

571
00:28:25,080 --> 00:28:27,600
Speaker 14: Gerwig will want to make all of her movies at

572
00:28:27,640 --> 00:28:30,080
Speaker 14: Netflix or her next several movies at Netflix. You know,

573
00:28:30,119 --> 00:28:32,200
Speaker 14: I could be wrong, obviously, if this becomes a huge

574
00:28:32,200 --> 00:28:34,359
Speaker 14: success and she wants to do it again, she could.

575
00:28:34,840 --> 00:28:37,600
Speaker 14: But what we've tended to see is big name filmmakers

576
00:28:37,760 --> 00:28:40,640
Speaker 14: like Greta Gerwig, like Alfonso Corone, they want to see

577
00:28:40,680 --> 00:28:42,800
Speaker 14: their movies and theaters and so they will mostly do that.

578
00:28:42,880 --> 00:28:45,160
Speaker 14: But if there's a project that they are particularly drawn

579
00:28:45,240 --> 00:28:47,440
Speaker 14: to or that no other studio will make and Netflix

580
00:28:47,440 --> 00:28:50,479
Speaker 14: will step forward, they'll do it, and especially because Netflix

581
00:28:50,520 --> 00:28:54,080
Speaker 14: will often satisfy the budgetary requirements that they have or want.

582
00:28:55,080 --> 00:28:57,480
Speaker 14: But it's sort of a you know, a temporary waystation

583
00:28:57,560 --> 00:28:59,400
Speaker 14: for a lot of these big filmmakers and not a home,

584
00:28:59,640 --> 00:29:02,680
Speaker 14: whereas Christopher Nolan, for example, another filmmaker, likes to find

585
00:29:02,720 --> 00:29:03,000
Speaker 14: a home.

586
00:29:03,120 --> 00:29:03,239
Speaker 3: Right.

587
00:29:03,280 --> 00:29:05,040
Speaker 14: He was at Warner Brothers for several years. Now it

588
00:29:05,040 --> 00:29:06,640
Speaker 14: seems like he's going to be at Universal for the

589
00:29:06,680 --> 00:29:07,640
Speaker 14: foreseeable future.

590
00:29:08,000 --> 00:29:09,760
Speaker 3: Well, they've got money spend what is it, at least

591
00:29:09,760 --> 00:29:13,680
Speaker 3: one hundred and seventy five million on this Narnia one, Lucas, Sure,

592
00:29:14,000 --> 00:29:14,560
Speaker 3: we thank you.

593
00:29:14,680 --> 00:29:16,160
Speaker 8: Ed Yeah.

594
00:29:16,200 --> 00:29:19,000
Speaker 4: Coming up on the show, how a Spanish brain computer

595
00:29:19,200 --> 00:29:22,360
Speaker 4: interface company is taken on Neuralink.

596
00:29:22,600 --> 00:29:23,920
Speaker 6: That's why we're looking forward to Carro.

597
00:29:24,240 --> 00:29:27,440
Speaker 3: Yeah, meanwhile, what's in a here and now ed bitcoin crypto?

598
00:29:27,480 --> 00:29:29,280
Speaker 3: You've been keeping it close on it, as we all have.

599
00:29:29,520 --> 00:29:29,720
Speaker 5: Look.

600
00:29:29,720 --> 00:29:32,280
Speaker 3: At one point it touched seventy two thousand dollars. We

601
00:29:32,320 --> 00:29:35,720
Speaker 3: haven't done that since April, but we are very close

602
00:29:35,760 --> 00:29:38,320
Speaker 3: to the record high setback in March of this year,

603
00:29:38,680 --> 00:29:40,800
Speaker 3: which is close to seventy four thousand dollars.

604
00:29:40,880 --> 00:29:41,520
Speaker 8: Just under it.

605
00:29:41,720 --> 00:29:43,240
Speaker 5: Well we get there. We're up three percent.

606
00:29:43,400 --> 00:29:45,479
Speaker 3: Options traders think it's going to get to eighty thousand

607
00:29:45,520 --> 00:29:48,240
Speaker 3: come what may in the election by the end of November.

608
00:29:48,280 --> 00:30:03,200
Speaker 3: This is Blomberg Technology. We hear a lot about Elo

609
00:30:03,320 --> 00:30:06,640
Speaker 3: Musque's brain computer startup Neuralink, but it is far from

610
00:30:06,680 --> 00:30:08,120
Speaker 3: being the only player in the field.

611
00:30:08,400 --> 00:30:09,200
Speaker 5: Take in Brain.

612
00:30:09,320 --> 00:30:12,040
Speaker 3: It's a European company building devices that could one day

613
00:30:12,360 --> 00:30:14,920
Speaker 3: treat neurological disorders like Parkinson's disease.

614
00:30:15,240 --> 00:30:17,000
Speaker 5: The startup just announced today that it's.

615
00:30:16,920 --> 00:30:20,480
Speaker 3: Raised fifty million dollars to develop its graphic based mural technologies.

616
00:30:20,760 --> 00:30:24,520
Speaker 3: Let's bring in the CEO co founder, Carolina Aguila for more,

617
00:30:24,560 --> 00:30:28,680
Speaker 3: and Carolina, just how soon might we see such things

618
00:30:28,720 --> 00:30:31,000
Speaker 3: as Parkinson's and other diseases tackled?

619
00:30:31,040 --> 00:30:32,000
Speaker 5: And how.

620
00:30:33,120 --> 00:30:35,440
Speaker 1: Thank you, thank you for having me here and hello

621
00:30:35,440 --> 00:30:39,960
Speaker 1: on New York. Well very soon, because we already treated

622
00:30:40,000 --> 00:30:44,480
Speaker 1: two patients on our safety at study and last year

623
00:30:44,520 --> 00:30:48,479
Speaker 1: we already obtained FDA breakthrough designation, so we actually provide

624
00:30:48,480 --> 00:30:52,360
Speaker 1: to the FDA reasonable proof of superiority versus car and neuromolation.

625
00:30:52,960 --> 00:30:56,720
Speaker 1: So it's I mean, this funding round, which is significant,

626
00:30:56,840 --> 00:30:58,719
Speaker 1: is going to help us to get there in the

627
00:30:58,760 --> 00:30:59,600
Speaker 1: next few years.

628
00:31:00,640 --> 00:31:02,160
Speaker 6: Let's go back to basics really quickly.

629
00:31:02,240 --> 00:31:05,680
Speaker 4: So synchron does this sort of intravenously with a stint

630
00:31:06,160 --> 00:31:09,680
Speaker 4: neural link is the insertion of very very thin wires

631
00:31:09,680 --> 00:31:10,920
Speaker 4: directly into the brain.

632
00:31:11,680 --> 00:31:13,080
Speaker 6: How does your technology work?

633
00:31:14,200 --> 00:31:18,400
Speaker 1: Yeah, well, it is a technology that it sits on

634
00:31:18,480 --> 00:31:21,400
Speaker 1: the brain, on the cortex of the brain, and also

635
00:31:21,480 --> 00:31:26,040
Speaker 1: has a deeper probe that it's inserted more into the

636
00:31:26,080 --> 00:31:30,440
Speaker 1: basal ganglia and together, actually it's able to decode in

637
00:31:30,480 --> 00:31:35,720
Speaker 1: a bidirectional communication with the brain specific biomarkers that are

638
00:31:35,800 --> 00:31:41,560
Speaker 1: disrupted in diseases like Parkinson's disease and actually restore such functions.

639
00:31:41,680 --> 00:31:45,560
Speaker 1: So we call it busy itherapeutics because this bi directional

640
00:31:45,560 --> 00:31:49,240
Speaker 1: communication with the brain is actually able to decode so

641
00:31:49,280 --> 00:31:52,320
Speaker 1: to read, but also right into their brain and actually

642
00:31:52,440 --> 00:31:53,400
Speaker 1: restore the function.

643
00:31:54,280 --> 00:31:57,000
Speaker 4: We're showing a video which is demonstrating that right now.

644
00:31:57,200 --> 00:32:00,360
Speaker 4: So fifty million dollars you know in your development process

645
00:32:00,560 --> 00:32:03,800
Speaker 4: and scaling of the technology, where we deploy that money.

646
00:32:05,120 --> 00:32:10,240
Speaker 1: Yeah, these fans are extremely important to continue the clinical

647
00:32:10,320 --> 00:32:14,360
Speaker 1: trials that we are now conducting. We are on boarding

648
00:32:14,440 --> 00:32:17,440
Speaker 1: up to ten patients for this safety trial that also

649
00:32:18,320 --> 00:32:21,320
Speaker 1: is going to show the superiority of graphine rescues current

650
00:32:21,760 --> 00:32:25,560
Speaker 1: metals like platin idiom. To expand the team because we

651
00:32:25,640 --> 00:32:30,680
Speaker 1: need very much excellent talent across boards. So we are

652
00:32:30,800 --> 00:32:35,680
Speaker 1: developing the semiconductor process of the interfaces, but also the electronics,

653
00:32:35,960 --> 00:32:40,080
Speaker 1: the software, the artificial intelligence. So we have already sixty people,

654
00:32:40,120 --> 00:32:42,320
Speaker 1: but we are missing some key pieces that would like

655
00:32:42,400 --> 00:32:46,040
Speaker 1: to recruit and also to continue the platform development to

656
00:32:46,120 --> 00:32:49,400
Speaker 1: the final pivotal that leads to the conversization.

657
00:32:50,400 --> 00:32:53,720
Speaker 3: So many people listening will be so excited at the

658
00:32:53,760 --> 00:32:57,640
Speaker 3: idea that Parkinson's disease, that epilepsy, the strokes can in

659
00:32:57,680 --> 00:33:00,520
Speaker 3: some way be tackled with this who from a venture

660
00:33:00,560 --> 00:33:03,520
Speaker 3: community is excited to put the money in, whereas the

661
00:33:04,080 --> 00:33:07,400
Speaker 3: ultimate return the reward for them when it comes to

662
00:33:07,440 --> 00:33:08,160
Speaker 3: your own growth.

663
00:33:09,680 --> 00:33:13,120
Speaker 1: Well, we are seeing deep tech fans very, very interested

664
00:33:13,200 --> 00:33:15,440
Speaker 1: on this field. I think in the past it's been

665
00:33:15,520 --> 00:33:21,200
Speaker 1: a traditional healthcare metech BC driven world, and now dep tech,

666
00:33:21,680 --> 00:33:26,000
Speaker 1: with the emergence of semiconductors, is also willing to chip

667
00:33:26,080 --> 00:33:30,880
Speaker 1: in big time into the development of such ventures. The end,

668
00:33:30,920 --> 00:33:34,800
Speaker 1: we're at the convergence of metech digital but also the

669
00:33:34,960 --> 00:33:40,440
Speaker 1: semiconductor world now that chips act. It's fuel and also

670
00:33:40,480 --> 00:33:41,040
Speaker 1: a lot of money.

671
00:33:41,040 --> 00:33:42,040
Speaker 6: In the US, but also in.

672
00:33:42,000 --> 00:33:45,920
Speaker 1: Europe, this community has bigger funds and is willing to

673
00:33:46,160 --> 00:33:46,880
Speaker 1: make this happen.

674
00:33:48,320 --> 00:33:51,520
Speaker 4: Tarlina, what's the regulatory environment like for this in Europe

675
00:33:52,160 --> 00:33:55,120
Speaker 4: relative I guess to the United States where we'll see

676
00:33:55,800 --> 00:33:57,040
Speaker 4: this in the real world.

677
00:33:57,080 --> 00:34:04,920
Speaker 1: First, yeah, we are regulated by the medical device regulatory bodies,

678
00:34:05,000 --> 00:34:08,040
Speaker 1: So for US it's very important to get, for instance,

679
00:34:08,040 --> 00:34:11,400
Speaker 1: what we call a C mark. It's a very similar

680
00:34:11,440 --> 00:34:14,560
Speaker 1: process to the one in the US. Whoever, I think

681
00:34:14,719 --> 00:34:18,960
Speaker 1: in the US there's been a tremendous progress with FDA

682
00:34:19,200 --> 00:34:24,280
Speaker 1: actually being extremely supportive with the FDA Breakthrough Designation program

683
00:34:24,640 --> 00:34:27,799
Speaker 1: but also the TAP program that we belong to, and

684
00:34:27,880 --> 00:34:31,600
Speaker 1: basically we are able to meet monthly FDA to discuss

685
00:34:31,840 --> 00:34:34,440
Speaker 1: some of the hurdles and the questions that we have

686
00:34:35,400 --> 00:34:39,719
Speaker 1: in order to develop this conversization at the speed. So

687
00:34:39,880 --> 00:34:42,640
Speaker 1: artificial intelligence is one of the subjects that we've been

688
00:34:42,719 --> 00:34:47,160
Speaker 1: treating in the last months, month after months, and this

689
00:34:47,280 --> 00:34:50,080
Speaker 1: is something that Europe still doesn't have. But I hope

690
00:34:51,000 --> 00:34:55,080
Speaker 1: that it's coming soon because it's extremely useful for innovation

691
00:34:55,280 --> 00:34:58,799
Speaker 1: and to not get people lost, which is also.

692
00:35:00,040 --> 00:35:04,520
Speaker 4: Waste of money in brain. CEO and co founder Caroline Aguila,

693
00:35:04,600 --> 00:35:16,320
Speaker 4: thank you so much. Sofi Technology has raised its profit

694
00:35:16,360 --> 00:35:18,840
Speaker 4: guidance for a third time this year. Is it benefited

695
00:35:18,880 --> 00:35:22,640
Speaker 4: from efforts to expand beyond its student lending business here

696
00:35:22,960 --> 00:35:26,800
Speaker 4: with Sofi and its results right now down seven percent.

697
00:35:27,040 --> 00:35:28,719
Speaker 4: I think the bar was pretty high going into this.

698
00:35:28,800 --> 00:35:30,520
Speaker 4: That that does put it on track for its biggest

699
00:35:30,600 --> 00:35:32,040
Speaker 4: drop since August.

700
00:35:32,160 --> 00:35:32,799
Speaker 6: What's going on?

701
00:35:33,160 --> 00:35:36,239
Speaker 4: Let's ask the CEO, Anthony noto and Anthony, you know

702
00:35:36,320 --> 00:35:39,080
Speaker 4: the story in the Court of Gone. It's kind of

703
00:35:39,120 --> 00:35:41,640
Speaker 4: the result of the work you've put into so far

704
00:35:41,800 --> 00:35:44,839
Speaker 4: doing more. Just explain that a little and where you're

705
00:35:44,880 --> 00:35:48,720
Speaker 4: bearing fruit in sort of diversifying business lines right now?

706
00:35:49,600 --> 00:35:52,920
Speaker 15: Sure, First to your point about the stock the study

707
00:35:53,000 --> 00:35:55,640
Speaker 15: is of about forty forty percent in the last month,

708
00:35:55,680 --> 00:35:57,800
Speaker 15: So it came into the quarter after a very big

709
00:35:58,280 --> 00:36:01,600
Speaker 15: increase in value over the last thirty days. So I

710
00:36:02,040 --> 00:36:04,280
Speaker 15: think we're seeing some of that being taken off the table.

711
00:36:04,840 --> 00:36:07,760
Speaker 15: But we had our best quarter as a public company.

712
00:36:08,200 --> 00:36:11,160
Speaker 15: We had record revenue. The growth rate of the revenue

713
00:36:11,200 --> 00:36:14,360
Speaker 15: accelerated to thirty percent year of year. That growth was

714
00:36:14,440 --> 00:36:17,080
Speaker 15: driven by sixty four percent year of year growth in

715
00:36:17,120 --> 00:36:21,440
Speaker 15: our financial services and our technology platform revenue taken as one,

716
00:36:21,800 --> 00:36:25,560
Speaker 15: that now accounts for forty nine percent of our total revenue.

717
00:36:25,680 --> 00:36:27,440
Speaker 15: And so we're not just a lender anymore, is the

718
00:36:27,520 --> 00:36:29,959
Speaker 15: key message. And this is a historic day for us.

719
00:36:30,200 --> 00:36:32,359
Speaker 15: Not only is it historic revenue, but we're to that

720
00:36:32,400 --> 00:36:35,960
Speaker 15: fifty to fifty split between lending and mind lending that

721
00:36:36,000 --> 00:36:38,800
Speaker 15: we wanted to drive to to really continue to diverse

722
00:36:38,800 --> 00:36:41,880
Speaker 15: fire revenue. We've been able to overcome a really tumultuous

723
00:36:41,960 --> 00:36:46,160
Speaker 15: environment over the last five years to deliver seventeen quarters

724
00:36:46,160 --> 00:36:50,960
Speaker 15: of consecutive seventeen quarters of record revenue growth and improving profitability,

725
00:36:51,360 --> 00:36:53,760
Speaker 15: and we finally got to the point where the business

726
00:36:53,800 --> 00:36:55,600
Speaker 15: is fifty to fifty, which is right where we.

727
00:36:55,600 --> 00:36:56,040
Speaker 9: Wanted to be.

728
00:36:56,840 --> 00:36:59,640
Speaker 15: The strength is really driven by the frigal services products

729
00:36:59,680 --> 00:37:02,399
Speaker 15: growing thirty seven percent year of a year, and that's

730
00:37:02,480 --> 00:37:04,000
Speaker 15: driving the revenue growth that I mentioned.

731
00:37:05,160 --> 00:37:07,080
Speaker 4: Part of this sort of slow down response in the

732
00:37:07,160 --> 00:37:10,200
Speaker 4: stock I think is some investors looking at your comments

733
00:37:10,200 --> 00:37:14,080
Speaker 4: about balance sheet growth longer term low single digit growth.

734
00:37:14,360 --> 00:37:16,440
Speaker 6: What would you be a response to that? Please?

735
00:37:17,800 --> 00:37:20,000
Speaker 15: We want to grow our revenue twenty to twenty five

736
00:37:20,040 --> 00:37:23,880
Speaker 15: percent compounded annually, so there's a lot of different drivers

737
00:37:23,920 --> 00:37:26,759
Speaker 15: to get there. We do not necessarily need to grow

738
00:37:26,760 --> 00:37:28,320
Speaker 15: a balance sheet at that rate, and in fact, we

739
00:37:28,360 --> 00:37:30,160
Speaker 15: don't plan to grow a balance sheet at that rate.

740
00:37:30,680 --> 00:37:34,160
Speaker 15: We've made a migration to more fee based revenue streams

741
00:37:34,200 --> 00:37:37,200
Speaker 15: that are capital light in high ROI. This was our

742
00:37:37,239 --> 00:37:40,920
Speaker 15: first large quarter of generating loan platform business revenue. It's

743
00:37:40,920 --> 00:37:43,400
Speaker 15: a business we've been in since twenty nineteen, but it

744
00:37:43,440 --> 00:37:45,960
Speaker 15: was a big contributor to both our growth and revenue

745
00:37:46,200 --> 00:37:49,279
Speaker 15: as well as profitability. So we don't need to grow

746
00:37:49,320 --> 00:37:52,200
Speaker 15: the balance sheet faster than it has been growing. In fact,

747
00:37:52,239 --> 00:37:55,000
Speaker 15: we want to take risk off the table and leverage

748
00:37:55,040 --> 00:37:57,200
Speaker 15: the other pieces of our businesses or other pieces of

749
00:37:57,200 --> 00:37:59,919
Speaker 15: our business that are fee based. In the core, about

750
00:38:00,000 --> 00:38:02,440
Speaker 15: one hundred and seventy five million dollars of our revenue

751
00:38:02,719 --> 00:38:05,960
Speaker 15: was from fee based revenue and growing a meaningful amount

752
00:38:06,040 --> 00:38:06,520
Speaker 15: year of year.

753
00:38:06,960 --> 00:38:09,400
Speaker 3: Let's just talk about putting that lever and indeed a

754
00:38:09,440 --> 00:38:11,880
Speaker 3: sixty four percent jump in the financial services and the

755
00:38:11,920 --> 00:38:14,600
Speaker 3: tech platform segments. Where else can you invest there to

756
00:38:14,719 --> 00:38:18,319
Speaker 3: ensure that sixty four percent is something you continue sure.

757
00:38:18,440 --> 00:38:21,520
Speaker 15: Within the financial services segment, we have several businesses. We

758
00:38:21,560 --> 00:38:25,480
Speaker 15: have our Sofi Money business, which is benefiting from a

759
00:38:25,520 --> 00:38:28,560
Speaker 15: high interest rate. We're seeing great growth in deposits two

760
00:38:28,640 --> 00:38:32,280
Speaker 15: point four billion dollars of member deposit growth, really strong

761
00:38:32,360 --> 00:38:35,480
Speaker 15: spending annualized ten billion dollars of spending, and so we'll

762
00:38:35,520 --> 00:38:38,320
Speaker 15: continue to grow that member base at a really high clip.

763
00:38:38,640 --> 00:38:42,160
Speaker 15: Second is our invest business. It's also growing meaningfully year year.

764
00:38:42,400 --> 00:38:45,200
Speaker 15: We also have our credit card business, and of course

765
00:38:45,280 --> 00:38:48,800
Speaker 15: our business that provides referrals to other financial services product

766
00:38:48,840 --> 00:38:51,080
Speaker 15: which we call Lantern. And then as I mentioned, the

767
00:38:51,120 --> 00:38:54,560
Speaker 15: loan platform business. That business itself grew over one hundred

768
00:38:54,560 --> 00:38:57,400
Speaker 15: percent year of year and it's annualizing now to billion

769
00:38:57,440 --> 00:39:00,680
Speaker 15: dollars with really strong improvement and profitability. So we'll keep

770
00:39:00,800 --> 00:39:03,640
Speaker 15: driving product and member growth in that business. In the

771
00:39:03,680 --> 00:39:06,440
Speaker 15: thirty plus percent range, and that will then follow with

772
00:39:06,560 --> 00:39:09,520
Speaker 15: revenue growth at are above that level over time.

773
00:39:09,840 --> 00:39:11,840
Speaker 3: Talk to us about the macro, because you're saying to

774
00:39:11,880 --> 00:39:15,480
Speaker 3: investors you feel really good about the current environment, that

775
00:39:15,680 --> 00:39:18,320
Speaker 3: headwinds and dissipated anything.

776
00:39:18,000 --> 00:39:18,640
Speaker 5: That worries you.

777
00:39:18,680 --> 00:39:20,560
Speaker 3: I mean, we're all still bracing for an election, and

778
00:39:20,600 --> 00:39:23,319
Speaker 3: that feels like quite a lot of lack of transparency.

779
00:39:24,040 --> 00:39:24,239
Speaker 14: Yeah.

780
00:39:24,520 --> 00:39:27,160
Speaker 15: I do think there's still a degree of uncertainty out there,

781
00:39:27,200 --> 00:39:29,440
Speaker 15: but I think the trends are clear that we're going

782
00:39:29,520 --> 00:39:32,800
Speaker 15: into a declining rate environment versus an increasing rate environment

783
00:39:33,160 --> 00:39:35,640
Speaker 15: and a declining rate environment. We have several businesses that

784
00:39:35,640 --> 00:39:38,920
Speaker 15: will benefit meaningfully. Our home loans business will benefit from

785
00:39:38,920 --> 00:39:42,160
Speaker 15: more financing. Our student loan refinance and business will allow

786
00:39:42,200 --> 00:39:44,680
Speaker 15: people to refinance their student loans at a lower rate

787
00:39:44,920 --> 00:39:47,399
Speaker 15: in a lower rate environment, and so those businesses will

788
00:39:47,400 --> 00:39:50,399
Speaker 15: have a tailwind for sure. In addition to that, as

789
00:39:50,520 --> 00:39:54,120
Speaker 15: rates come down, the rates that other competitive banks are

790
00:39:54,160 --> 00:39:57,360
Speaker 15: offering their members or their clients will also come down,

791
00:39:57,920 --> 00:40:00,279
Speaker 15: and we will be able to maintain a super your

792
00:40:00,320 --> 00:40:02,879
Speaker 15: rate compared to them because we also own the lending

793
00:40:02,880 --> 00:40:05,799
Speaker 15: origination platform, so we can use the two of them

794
00:40:05,840 --> 00:40:09,600
Speaker 15: as a competitive advantage. To drive a better apy than

795
00:40:09,600 --> 00:40:13,680
Speaker 15: our competitors broadly defined. And then lastly, within that business,

796
00:40:14,000 --> 00:40:16,920
Speaker 15: our credit card business. We just launched two new credit

797
00:40:16,920 --> 00:40:19,200
Speaker 15: cards that we think uniquely meet the needs of our

798
00:40:19,239 --> 00:40:21,920
Speaker 15: members that have a lot of growth prospects behind them

799
00:40:21,960 --> 00:40:23,319
Speaker 15: as well.

800
00:40:23,440 --> 00:40:25,640
Speaker 4: Anthony, what's your M and A plan from here? For

801
00:40:25,719 --> 00:40:26,839
Speaker 4: things you don't already have.

802
00:40:27,719 --> 00:40:29,759
Speaker 15: We're heads down. We're not focused on M and A

803
00:40:29,760 --> 00:40:32,280
Speaker 15: at all. We're not focused on capital raises. We're focused

804
00:40:32,320 --> 00:40:35,480
Speaker 15: on growing our business organically twenty to twenty five percent

805
00:40:35,480 --> 00:40:38,080
Speaker 15: in revenue on a year of your basis balance sheet

806
00:40:38,080 --> 00:40:41,160
Speaker 15: growing much slower than that, and continue to build unaided

807
00:40:41,200 --> 00:40:43,680
Speaker 15: brand awareness. Our unaated brand awareness is a key to

808
00:40:43,680 --> 00:40:46,080
Speaker 15: become a household brand name. It's a key to become

809
00:40:46,120 --> 00:40:48,799
Speaker 15: a trusted partner in a business where people have to

810
00:40:48,800 --> 00:40:51,560
Speaker 15: trust you to give give you their money. And we've

811
00:40:51,640 --> 00:40:54,120
Speaker 15: driven that up forty percent year of year to seven percent.

812
00:40:54,239 --> 00:40:56,520
Speaker 15: Our goals to get it into the thirty percent range.

813
00:40:56,680 --> 00:40:58,800
Speaker 15: We're well in our way and making great progress.

814
00:40:59,360 --> 00:41:02,200
Speaker 5: Have you got any worries about the consumer at this point? Anthony?

815
00:41:02,280 --> 00:41:04,480
Speaker 5: And consumer credit quality?

816
00:41:04,680 --> 00:41:07,960
Speaker 15: Sure, our credit has actually continued to improve. We saw

817
00:41:08,000 --> 00:41:12,239
Speaker 15: a peak and credit normalization in Q one, and it's

818
00:41:12,239 --> 00:41:15,799
Speaker 15: gotten better each quarter since then. That said, you know,

819
00:41:16,120 --> 00:41:18,399
Speaker 15: we're very vigilant and making sure that we think will

820
00:41:18,400 --> 00:41:21,400
Speaker 15: be in a stable economy. Declining rates with a recession

821
00:41:21,440 --> 00:41:24,360
Speaker 15: would not be great. Declining rates with a stable economy

822
00:41:24,400 --> 00:41:26,520
Speaker 15: would be great. And that's what our current forecast has

823
00:41:26,520 --> 00:41:27,200
Speaker 15: for twenty five.

824
00:41:28,000 --> 00:41:30,960
Speaker 4: And see we literally have thirty seconds the election. How

825
00:41:30,960 --> 00:41:31,759
Speaker 4: are you brace for it?

826
00:41:33,000 --> 00:41:35,759
Speaker 15: You know, we can work with whatever administration we have.

827
00:41:36,480 --> 00:41:39,400
Speaker 15: There are different characteristic of the administration that could be

828
00:41:39,400 --> 00:41:42,959
Speaker 15: more favorable for our business. I would say generally, more

829
00:41:43,000 --> 00:41:48,080
Speaker 15: favorable capital markets would be welcomed. More favorable treatment towards

830
00:41:48,120 --> 00:41:52,040
Speaker 15: businesses would also be welcomed. There's a lot of opportunity

831
00:41:52,080 --> 00:41:55,720
Speaker 15: that sometimes gets stifled by different approaches as it relates

832
00:41:55,760 --> 00:41:59,000
Speaker 15: to capital markets, to M and A from the different agencies.

833
00:41:59,040 --> 00:42:02,120
Speaker 15: So we're looking for a good balanced approach from whatever

834
00:42:02,160 --> 00:42:05,520
Speaker 15: administration wins. But we're prepared to work with both ends

835
00:42:05,520 --> 00:42:05,960
Speaker 15: of the aisle.

836
00:42:06,680 --> 00:42:09,640
Speaker 3: So FI CEO Anthony Notta, thank you so much for

837
00:42:09,719 --> 00:42:11,320
Speaker 3: joining us on your earnings.

838
00:42:11,360 --> 00:42:12,960
Speaker 5: We appreciate it now.

839
00:42:13,000 --> 00:42:14,920
Speaker 3: That does it for a very busy edition of Bloomberg

840
00:42:14,920 --> 00:42:17,440
Speaker 3: Technology and more earnings coming thick and fast after the ballot.

841
00:42:17,560 --> 00:42:19,399
Speaker 6: Yeah, that was a good way of ending it though.

842
00:42:19,400 --> 00:42:22,279
Speaker 4: A really interesting conversation recap on the podcast. You know

843
00:42:22,320 --> 00:42:24,879
Speaker 4: where to find the pods online on all the platforms

844
00:42:25,160 --> 00:42:27,280
Speaker 4: you'd expect. It is going to be a massive week

845
00:42:27,520 --> 00:42:30,440
Speaker 4: the megacap Tech earnings starting Earnest Affter the Bell from

846
00:42:30,440 --> 00:42:32,520
Speaker 4: the team in New York City and the team out

847
00:42:32,520 --> 00:42:33,480
Speaker 4: here in San Francisco.

848
00:42:33,880 --> 00:42:36,440
Speaker 6: Stay with us this week. This is Bloomberg Technology