WEBVTT - Microsoft SharePoint Hack, Musk’s Wild Business Bets

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<v Speaker 1>Bloomberg Tech is alive from coast to coast with Carolline

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<v Speaker 1>hide in New York and ever though in San Francisco.

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<v Speaker 2>This is Bloomberg Tech coming up.

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<v Speaker 1>Tens of thousands of organizations could be affected by a

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<v Speaker 1>hack of Microsoft is a share Point software.

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<v Speaker 2>Plus all eyes on Tesla, Alphabet IBM.

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<v Speaker 1>This week is big tech earnings get underway and stop benchmarks,

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<v Speaker 1>hit new records and how Tesla, SpaceX and Xai are

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<v Speaker 1>struggling to deal with the fallout from must feud with

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<v Speaker 1>Trump and his wild beast. But first, one key stop

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<v Speaker 1>we're looking at, which is managing to shrug off initial

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<v Speaker 1>anxiety that you saw at the Sardle trade around this

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<v Speaker 1>global vulnerability.

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<v Speaker 2>Share Point the software where you.

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<v Speaker 1>Can be It's a data management application for Microsoft, and

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<v Speaker 1>indeed it could be exposed two hackers. Tens of thousands

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<v Speaker 1>of businesses could be affected.

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<v Speaker 2>Let's get to it.

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<v Speaker 1>Bloomberg's Brodie Ford and it's not a share impact, but

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<v Speaker 1>it could be a real impact for users.

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<v Speaker 3>That is absolutely right. If you have a coworker who

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<v Speaker 3>sends you a file, there's a good chance it's on SharePoint.

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<v Speaker 3>I mean, this is a very well used, pervasive program

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<v Speaker 3>from Microsoft. And what is interesting about this situation is

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<v Speaker 3>it is about one year after a very fateful day

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<v Speaker 3>for Microsoft, which is when that issue with CrowdStrike caused

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<v Speaker 3>all those flights to go down. And so Microsoft Cybersecurity

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<v Speaker 3>Division has had a lot of heat lately. Today it

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<v Speaker 3>just got a little hotter.

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<v Speaker 2>It did over the course of the weekend.

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<v Speaker 1>The US Cybersecurity and Infrastructure Security Agency CEESA put out

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<v Speaker 1>this warning. And it's not the first time that the

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<v Speaker 1>US government has called out Microsoft for these sorts of vulnerabilities.

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<v Speaker 3>Absolutely, and you could say that this is a really

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<v Speaker 3>small sub sect of customers likely, right, this is folks

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<v Speaker 3>who are using SharePoint on premise. That's likely a small

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<v Speaker 3>subsect of the larger group. And it's those who maybe

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<v Speaker 3>should have updated to the cloud and this maybe wouldn't

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<v Speaker 3>have happened. But it doesn't matter, right, If you're a

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<v Speaker 3>customer and you got your SharePoint hacked and now you

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<v Speaker 3>have hackers going between your files to your teams and

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<v Speaker 3>pulling out emails and god knows what, you certainly might

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<v Speaker 3>take a second look before staying with Microsoft or certain

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<v Speaker 3>security products.

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<v Speaker 1>Has Microsoft responded and how well they've sent out some

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<v Speaker 1>instructions on Hey, here's how to patch your system, here's

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<v Speaker 1>what to do if you think you may have been impacted.

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<v Speaker 3>But this is a pretty quick moving thing.

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<v Speaker 4>I mean.

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<v Speaker 3>Also, Microsoft earnings are next week, and so I'm certainly

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<v Speaker 3>expecting to hear some questions about, hey, is this impacting

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<v Speaker 3>any kind of customer.

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<v Speaker 1>Behavior yet Census Silas Cutler and your story saying it's

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<v Speaker 1>a dream for ransomware operators.

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<v Speaker 2>Yeah, yes, Brody.

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<v Speaker 1>Ford, thank you, thanks for reporting on it for us. Meanwhile,

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<v Speaker 1>let's just get a bit broader, because we were just

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<v Speaker 1>hearing from Brody that big tech earnings are coming up. Indeed,

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<v Speaker 1>Microsoft is one of them. Amazon that's happening later this

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<v Speaker 1>month too. This week, we've got Tesla, Alphabet, IBM, to

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<v Speaker 1>name but a few. Let's bring in Bloomberg's Denitza Takover Dinitza. Look,

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<v Speaker 1>are we expecting red you to be improving for the

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<v Speaker 1>likes of.

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<v Speaker 2>Alphabet at least? I know that test a story. But

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<v Speaker 2>let's talk on about Alphabet.

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<v Speaker 5>We actually saw an upgrade on Alphabet from Morgan's family.

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<v Speaker 5>They're very optimistic both on Alphabet and Meta, but they're

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<v Speaker 5>up grading. The press saga at Alphabet just because the

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<v Speaker 5>violations of META is pretty high. But what we're seeing now,

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<v Speaker 5>we're obviously at record high SMP traits at twenty times

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<v Speaker 5>twenty two times forward turnings, just incredible rally here, we're

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<v Speaker 5>also seeing a very high bar. There is a big

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<v Speaker 5>punishment for those who miss on learnings, the biggest in

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<v Speaker 5>three years. And for those who actually overperform outperform, it's

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<v Speaker 5>like the best in about a year, So the bar

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<v Speaker 5>is higher, especially if you disappoint. Artificial intelligence spending has

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<v Speaker 5>really made a big difference in the Magnificent seven. We

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<v Speaker 5>see meta, we see Microsoft and Video leading the games,

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<v Speaker 5>and obviously Apple were struggling.

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<v Speaker 2>Amazon is another interesting story. They're up just about three

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<v Speaker 2>percent year.

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<v Speaker 5>To date, which compared to the incredible spending metadid and

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<v Speaker 5>the reward investors have given to that companies up more

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<v Speaker 5>than twenty percent.

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<v Speaker 2>So we're seeing a big gap opening.

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<v Speaker 5>And with this year earning season happening without too many

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<v Speaker 5>economic reports, too much happening in the macro, it's all

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<v Speaker 5>about the earnings right now.

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<v Speaker 2>And I love that you bring up the spending.

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<v Speaker 1>The metro is done because Boomberg Intelligence manly it's saying

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<v Speaker 1>writing that Alphabet. We are anticipating maybe even increasing capex

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<v Speaker 1>coming from then. We're also anticipating all the fact that

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<v Speaker 1>they've boosted some of the prices of their ad targeting.

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<v Speaker 1>Maybe that's going to be reaping dividend. You can go

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<v Speaker 1>and read more about the preview that our colleagues over

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<v Speaker 1>at Bloomberg Intelligence have. But he said, go back to

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<v Speaker 1>maybe the other key proof point this week is Tesla.

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<v Speaker 1>Now what's interesting is sometimes the fundamentals don't matter for

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<v Speaker 1>this business. We expect revenue to full, profitability to full.

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<v Speaker 1>There's more about what Elon says.

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<v Speaker 5>It's really fascinating because he was very active this week

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<v Speaker 5>and he was saying he was working twenty four to seven.

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<v Speaker 5>He's even sleeping there.

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<v Speaker 2>She did so big reaction today.

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<v Speaker 5>In pre market there was some optimism, but today the

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<v Speaker 5>stock is actually down. We also have news the tests,

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<v Speaker 5>so it's set to fight California Department of Motor Vehicles

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<v Speaker 5>over there claims that the company has exaggerated their capitabilities

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<v Speaker 5>of sale driving. And no, we're not seeing a major move. Obviously,

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<v Speaker 5>after that quarrel with President Trump, the stock was under

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<v Speaker 5>roll of pressure. It has recovered some of that, but

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<v Speaker 5>there is a whole universe of investments. Try to even

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<v Speaker 5>musk that has been under pressure and hasn't received that

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<v Speaker 5>big social social sentiment we saw after the election in

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<v Speaker 5>the beginning of the year. So with that boost absence,

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<v Speaker 5>the question is whether investors will really penalize a missing earnings.

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<v Speaker 2>Particularly the retail funds.

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<v Speaker 1>We're going to dig into Tesla much more in a

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<v Speaker 1>moment with Max Traffick can but with the numbers was

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<v Speaker 1>Denisa Teikova.

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<v Speaker 2>We thank you very much now that.

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<v Speaker 1>She's bringing a broader perspective as we think about earnings,

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<v Speaker 1>we think about idias in crime news. Like Microsoft's Michael

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<v Speaker 1>Reynolds is with US vice president Investment Strategy of at

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<v Speaker 1>glen Mead. You've got a call forty five billion dollars

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<v Speaker 1>in assets under management, and I go to you first

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<v Speaker 1>about the optimism already baked in the market. We're at

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<v Speaker 1>record highs again, How high is the bar for earnings

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<v Speaker 1>this week?

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<v Speaker 6>Thanks for having me on. The bar is pretty high.

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<v Speaker 7>As we come into Q two, it seems like a

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<v Speaker 7>lot of companies are really posting some or expected to

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<v Speaker 7>post some results that are relatively resilient, especially compared to

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<v Speaker 7>where people thought tariffs were going to be in early

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<v Speaker 7>April that the thought that that was going to hit

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<v Speaker 7>margins pretty materially.

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<v Speaker 6>We're looking at Q two numbers.

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<v Speaker 7>In the aggregate that are actually holding up pretty well.

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<v Speaker 7>Sm P five hundred expected to post five percent earnings

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<v Speaker 7>growth on a year over year basis. Tech is a

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<v Speaker 7>pretty big contributor to that, and they may be relative

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<v Speaker 7>beneficiaries from the tariffs that have been announced and have

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<v Speaker 7>gone into effect so far. So overall, the story of

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<v Speaker 7>earning season as the rubber sit in the road is

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<v Speaker 7>resilient so far.

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<v Speaker 1>More surprisingly, stop resilience for the large cap is of

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<v Speaker 1>the AI trade in particular, I think of in video

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<v Speaker 1>in particular, I think meta. But we have started to

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<v Speaker 1>see this bifurcation in the MAG seven. For example, Tesla

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<v Speaker 1>has not overperformed this year, and indeed is a key

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<v Speaker 1>lagged so too is Apple. How are you seeing that

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<v Speaker 1>being plaid out from an investor sentiment perspective?

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<v Speaker 7>An excellent point. We're not just bucketing the MAG seven.

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<v Speaker 7>We're looking at broader tech here, and there is this bifurcation.

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<v Speaker 6>In large cap MAG seven.

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<v Speaker 7>Overall, Again, some aren't contributing are a really big driver

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<v Speaker 7>of the.

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<v Speaker 6>Results for the S and P five hundred.

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<v Speaker 7>But if you look over into small caps, actually some

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<v Speaker 7>of the biggest contributors for pretty notable gains and earnings

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<v Speaker 7>for Q two are so be financials and healthcare. So

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<v Speaker 7>what that sort of tells you is it's really not

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<v Speaker 7>just a broad tech play for earnings resilience this quarter.

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<v Speaker 6>It's actually a little bit more company.

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<v Speaker 7>Specific, which is a bit of a departure from what

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<v Speaker 7>we saw last year, where in the aggregate mag seven

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<v Speaker 7>just blistering earnings growth and you're starting.

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<v Speaker 6>To see some of that falter a little bit deceleration.

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<v Speaker 7>In the aggregate in some company is just having a

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<v Speaker 7>little bit of a tougher go of it.

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<v Speaker 1>In terms of a tougher go of it, just think

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<v Speaker 1>Max last week in Netflix. I mean, they managed to

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<v Speaker 1>post some really solid earnings, but they were punished largely

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<v Speaker 1>because of just how well they've run up. Is there

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<v Speaker 1>a risk that companies don't even underperform. They actually managed

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<v Speaker 1>to beat but not well enough.

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<v Speaker 7>Sure, that's an inherent risk when you have companies that

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<v Speaker 7>are valued so to such a premium extent that they

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<v Speaker 7>have such high let's call it price to earnings ratios

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<v Speaker 7>that you bake in a growth rate to those earnings,

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<v Speaker 7>and if you can't meet those hurdles, there's often a

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<v Speaker 7>big punishment for failing to meet those results. There comes

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<v Speaker 7>great expectations with great valuations, and so if you're showing

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<v Speaker 7>signs that perhaps down the road we're not going to

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<v Speaker 7>be able to meet some of those earnings growth expectations,

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<v Speaker 7>there's a rerating that has to happen there, and it's

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<v Speaker 7>an inherent risk investing with again, growth stocks or premium

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<v Speaker 7>valuation equities.

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<v Speaker 2>And regulatory risk overhangs a lot of these big names.

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<v Speaker 1>I think of Alphabet in the line of fire when

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<v Speaker 1>it comes to investigations as to whether it's a monopoly

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<v Speaker 1>in certain areas of its business. You think about Tesla

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<v Speaker 1>and the ongoing need for more regulation around robotaxis in

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<v Speaker 1>the future. That affects way more too. How much do

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<v Speaker 1>you have to factor in regulation right now?

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<v Speaker 5>Am I?

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<v Speaker 7>Regulatory risk is so important, especially when you have such

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<v Speaker 7>a concentrated market as we have now. Right now, we

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<v Speaker 7>have one stock in the S and P five hundred

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<v Speaker 7>that's had an eight percent plus weight in a five

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<v Speaker 7>hundred company index. We've seen this two other times in

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<v Speaker 7>the sixties you had AT and T, and you had IBM.

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<v Speaker 7>What happens is when you get to such a scale,

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<v Speaker 7>you have a target on your back, and that can

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<v Speaker 7>be a regulatory target, and that could also be a

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<v Speaker 7>competitive target. So these are things that you have to

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<v Speaker 7>think through. When you're looking at a company that dominates

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<v Speaker 7>an index, they have a target on their back and

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<v Speaker 7>you have to sort of think through the implications of

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<v Speaker 7>what that can have to future earnings, growth and future

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<v Speaker 7>dominance of the company.

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<v Speaker 1>Thus far, in video stays higher, up about a quarter

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<v Speaker 1>of percent. In fact, Apple getting a little bit of

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<v Speaker 1>wind beneath its wings for this particular week. But might

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<v Speaker 1>go back to what you said about small caps, so

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<v Speaker 1>that we're a tech focus show here, but the fact

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<v Speaker 1>that healthcare and the fact that financials outperform how much

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<v Speaker 1>that's starting to be, the fact that.

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<v Speaker 2>AI will be beneficial and that will help.

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<v Speaker 1>Revenue growth and maybe profitability as well.

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<v Speaker 7>It's an excellent point because we've seen some of the

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<v Speaker 7>initial beneficiaries of AI than those that are developing the

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<v Speaker 7>technology and providing the hardware for that technology. But ultimately

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<v Speaker 7>that's going to be something like the Internet that permeates

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<v Speaker 7>through every company and there's got to be this thought

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<v Speaker 7>process across the spectrum that AI is going to be

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<v Speaker 7>a beneficiary for these companies and it's going to penetrate

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<v Speaker 7>through throughout C suites, throughout the economy.

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<v Speaker 6>So is it a little early to perhaps.

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<v Speaker 7>Being able to see some of that penetration happen in

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<v Speaker 7>real time for some of these companies perhaps, but some

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<v Speaker 7>of these early movers could start to see some benefits

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<v Speaker 7>onto their bottom line loop.

0:10:53.840 --> 0:10:56.600
<v Speaker 1>We're a global network as well, and we talk so

0:10:56.800 --> 0:10:58.880
<v Speaker 1>much about the US winners, but I think about what

0:10:58.960 --> 0:11:01.280
<v Speaker 1>TSMC is doing with its valuation hitting more than a

0:11:01.320 --> 0:11:04.720
<v Speaker 1>trillion over in South Korea, when you're thinking about European bets, Mike,

0:11:04.840 --> 0:11:07.800
<v Speaker 1>how much you're seeing investors want to get global with

0:11:07.840 --> 0:11:08.840
<v Speaker 1>their tech exposure.

0:11:10.400 --> 0:11:12.560
<v Speaker 7>We're seeing quite a bit of that, especially around the

0:11:12.600 --> 0:11:16.200
<v Speaker 7>dollar in particular, where we're looking at portfolios in some

0:11:16.280 --> 0:11:20.440
<v Speaker 7>cases that you know, if they're very US focused. We're arguing,

0:11:20.480 --> 0:11:22.920
<v Speaker 7>if you don't have a single investment in your portfolio

0:11:22.920 --> 0:11:26.240
<v Speaker 7>that's not dollar denominated, you're not properly invested. And so

0:11:26.320 --> 0:11:28.920
<v Speaker 7>when we're going to look for these opportunities abroad, it's

0:11:28.960 --> 0:11:32.319
<v Speaker 7>not just what are the company specific opportunities, but more

0:11:32.360 --> 0:11:34.680
<v Speaker 7>on a macro basis, if we do find ourselves in

0:11:34.720 --> 0:11:37.440
<v Speaker 7>a declining dollar environment, you're going to really wish you

0:11:37.520 --> 0:11:40.720
<v Speaker 7>have non dollar denominated assets in your portfolio.

0:11:41.160 --> 0:11:43.520
<v Speaker 6>May some of that be AI plays, perhaps, but.

0:11:43.600 --> 0:11:46.120
<v Speaker 7>More broadly, it's just more important that you're looking abroad

0:11:46.160 --> 0:11:49.160
<v Speaker 7>for a global opportunity set within your equity portfolio.

0:11:49.280 --> 0:11:52.600
<v Speaker 1>Michael Reynolds, vice president of investment Strategy at glenmade great

0:11:52.640 --> 0:11:53.280
<v Speaker 1>to catch up with you.

0:11:53.320 --> 0:11:53.719
<v Speaker 2>Thank you.

0:11:54.400 --> 0:11:58.120
<v Speaker 1>Now coming up how Tesna SpaceX xai. They are struggling

0:11:58.160 --> 0:11:59.959
<v Speaker 1>to deal with the fallout from musks feud with try

0:12:00.440 --> 0:12:01.040
<v Speaker 1>that's next.

0:12:01.080 --> 0:12:04.080
<v Speaker 2>It's the Business Week front cover. This is bloom Beg Tech.

0:12:16.559 --> 0:12:18.680
<v Speaker 2>You know Musk's feuds and wild bets.

0:12:18.720 --> 0:12:21.880
<v Speaker 1>Well, they're having an impact on the billionaires businesses, including.

0:12:21.520 --> 0:12:22.840
<v Speaker 2>Tessa SpaceX XAI.

0:12:23.160 --> 0:12:25.560
<v Speaker 1>And that is the focus on the Bloomberg Big take,

0:12:25.840 --> 0:12:27.640
<v Speaker 1>and it's bloom Begg's Max Chafkin and our own End

0:12:27.679 --> 0:12:30.200
<v Speaker 1>Ludlow that co author and Max joins us right now.

0:12:30.320 --> 0:12:31.920
<v Speaker 2>It's a great story.

0:12:31.960 --> 0:12:34.680
<v Speaker 1>It's the lead of the Business Week cover as well,

0:12:35.120 --> 0:12:37.560
<v Speaker 1>and you go into the case studies of just how

0:12:37.640 --> 0:12:40.960
<v Speaker 1>what has been a very public spat has fallen out

0:12:41.000 --> 0:12:44.960
<v Speaker 1>into some key well future crises for these companies.

0:12:45.080 --> 0:12:45.240
<v Speaker 8>Yeah.

0:12:45.280 --> 0:12:48.480
<v Speaker 9>Absolutely, So you do have this feud with Donald Trump,

0:12:48.480 --> 0:12:49.240
<v Speaker 9>which is a big deal.

0:12:49.280 --> 0:12:51.360
<v Speaker 6>I mean, I think you look at like, why.

0:12:51.320 --> 0:12:55.000
<v Speaker 9>Has Tesla's stark fallen over the past six months or so.

0:12:55.280 --> 0:12:56.839
<v Speaker 6>A big reason of that is.

0:12:56.800 --> 0:12:59.320
<v Speaker 9>It's kind of like it hit a high just after

0:12:59.320 --> 0:13:02.360
<v Speaker 9>the election, and we've had kind of a reverse Trump train.

0:13:02.679 --> 0:13:05.840
<v Speaker 9>But once you back away from the Trump of it all,

0:13:06.040 --> 0:13:11.160
<v Speaker 9>you start to see three key companies, SpaceX, Tesla X,

0:13:11.520 --> 0:13:14.880
<v Speaker 9>all of which are attempting these huge, kind of monumental

0:13:14.920 --> 0:13:18.040
<v Speaker 9>things with huge amounts of risk. I think it's a

0:13:18.080 --> 0:13:20.720
<v Speaker 9>thing that Elon Musk has never tried to do before.

0:13:20.760 --> 0:13:22.360
<v Speaker 6>Really, we've never seen.

0:13:22.160 --> 0:13:23.680
<v Speaker 9>This in his career, as much as he's a guy

0:13:23.760 --> 0:13:26.480
<v Speaker 9>who makes big bets. We have Tesla attempting to do

0:13:26.679 --> 0:13:30.000
<v Speaker 9>a really like a hard pivot away from car manufacturing

0:13:30.160 --> 0:13:33.920
<v Speaker 9>to robotaxis, a competitive field where they're not necessarily in

0:13:33.960 --> 0:13:36.560
<v Speaker 9>the lead. We have Starship, this giant rocket which has

0:13:36.600 --> 0:13:40.120
<v Speaker 9>yet to fly yet, we've had three successive explosions during

0:13:40.160 --> 0:13:42.920
<v Speaker 9>test flights. And then we have x which looks very

0:13:42.960 --> 0:13:46.439
<v Speaker 9>promising XAI, but I think is clearly a little bit

0:13:46.480 --> 0:13:49.480
<v Speaker 9>behind some of its competitors, Open AI and anthropic and

0:13:49.640 --> 0:13:52.640
<v Speaker 9>is losing huge sums of money. And you take all

0:13:52.679 --> 0:13:55.560
<v Speaker 9>those three things, and then you take a poor relationship

0:13:55.760 --> 0:13:57.880
<v Speaker 9>with the guy who is in power in the United States.

0:13:58.000 --> 0:14:00.200
<v Speaker 9>And that is a dangerous recipe.

0:14:00.120 --> 0:14:03.040
<v Speaker 1>Say, and it's a dangerous recipe that investors now stead

0:14:03.120 --> 0:14:05.200
<v Speaker 1>down the barrel of his earnings come up this week

0:14:05.240 --> 0:14:09.120
<v Speaker 1>on Wednesday, he's already declaring he's sleeping at the office

0:14:09.400 --> 0:14:11.120
<v Speaker 1>largely to fix is it Tesla?

0:14:11.160 --> 0:14:12.880
<v Speaker 2>And at the moment is X How do we know

0:14:13.000 --> 0:14:14.280
<v Speaker 2>where he's spending his time?

0:14:14.400 --> 0:14:15.200
<v Speaker 6>Well, that is the thing.

0:14:15.240 --> 0:14:17.480
<v Speaker 9>And as Ed and I talk about in this story,

0:14:17.640 --> 0:14:20.080
<v Speaker 9>I think if you talk to different people at different companies,

0:14:20.080 --> 0:14:22.560
<v Speaker 9>they'll say different things. I think Tesla employees, a lot

0:14:22.560 --> 0:14:25.400
<v Speaker 9>of them feel that Tesla's is Elon Musk's main priority.

0:14:25.760 --> 0:14:28.760
<v Speaker 9>XAI employees kind of would say the same thing. I

0:14:28.760 --> 0:14:31.240
<v Speaker 9>think SpaceX is in a slightly different position because you

0:14:31.320 --> 0:14:34.480
<v Speaker 9>do have sort of a strong executive more or less

0:14:34.520 --> 0:14:37.479
<v Speaker 9>in charge. That's Gwen shot Well, the president and COO.

0:14:37.760 --> 0:14:41.160
<v Speaker 9>But there is that tension and we saw that come up.

0:14:41.640 --> 0:14:43.080
<v Speaker 9>You know, in the last couple of weeks, we've seen

0:14:43.120 --> 0:14:46.520
<v Speaker 9>investors suggest that maybe Tesla needs to give Elon Musk

0:14:46.600 --> 0:14:49.920
<v Speaker 9>even more equity to sort of persuade him to spend

0:14:50.000 --> 0:14:50.680
<v Speaker 9>more time at Tesla.

0:14:50.720 --> 0:14:52.440
<v Speaker 6>Which is a strange thing when you're.

0:14:52.280 --> 0:14:54.920
<v Speaker 9>Talking about a stock that's gone down, when you're talking

0:14:54.960 --> 0:14:57.720
<v Speaker 9>about all of the challenges this company faces in terms

0:14:57.800 --> 0:15:01.000
<v Speaker 9>of the core business, the car business, which has not

0:15:01.040 --> 0:15:03.080
<v Speaker 9>been performing well over the last year.

0:15:03.040 --> 0:15:06.000
<v Speaker 1>Or so, And you really articulate how much just general

0:15:06.080 --> 0:15:09.800
<v Speaker 1>sentiment towards Musk as what had been the most adored

0:15:09.960 --> 0:15:13.520
<v Speaker 1>entrepreneur has completely depleted, but he still has such a

0:15:13.520 --> 0:15:15.640
<v Speaker 1>big base of retail supporters.

0:15:16.240 --> 0:15:18.880
<v Speaker 2>Is that fading in this current moment? How much does

0:15:18.880 --> 0:15:19.880
<v Speaker 2>that have to be an anxiety?

0:15:19.920 --> 0:15:22.600
<v Speaker 9>I mean, you look at Tesla stock and it's still

0:15:22.640 --> 0:15:25.640
<v Speaker 9>not doing that poorly considering all of these kind of

0:15:25.800 --> 0:15:28.240
<v Speaker 9>challenges that I've brought up. So the stock is still

0:15:28.680 --> 0:15:32.000
<v Speaker 9>very very expensive compared to other car companies. It hasn't

0:15:32.040 --> 0:15:35.280
<v Speaker 9>you know, done especially badly over the last month or so.

0:15:35.000 --> 0:15:37.480
<v Speaker 9>So there is this base of support, But I think

0:15:37.480 --> 0:15:40.440
<v Speaker 9>you hit the nail on the head, Caroline. The big

0:15:40.560 --> 0:15:42.840
<v Speaker 9>change here for Elon Musk is he went from being

0:15:43.080 --> 0:15:45.640
<v Speaker 9>a very popular, admired guy.

0:15:45.640 --> 0:15:47.400
<v Speaker 2>To being unpopular when you.

0:15:47.440 --> 0:15:50.200
<v Speaker 9>Look at his approval rantings, they are poor, and you

0:15:50.240 --> 0:15:53.240
<v Speaker 9>know it's possible. You don't necessarily need to be popular

0:15:53.240 --> 0:15:56.000
<v Speaker 9>to succeed in business. But it doesn't hurt, especially when

0:15:56.000 --> 0:16:00.480
<v Speaker 9>you've made your own personal brand so important to your companies,

0:16:00.480 --> 0:16:01.360
<v Speaker 9>says Yon musk Has.

0:16:01.720 --> 0:16:04.160
<v Speaker 1>And when your biggest found from an analyst perspective, and

0:16:04.200 --> 0:16:05.920
<v Speaker 1>we know, give a short shrift to Wall Street.

0:16:05.920 --> 0:16:08.120
<v Speaker 2>But when Dan I says, pay the guy more, and

0:16:08.160 --> 0:16:09.360
<v Speaker 2>he says, shut up.

0:16:09.520 --> 0:16:12.880
<v Speaker 1>Dan Ulmberg's MaTx Chaffkin, it's great piece.

0:16:13.240 --> 0:16:21.200
<v Speaker 2>I urge you to go read it in his time.

0:16:21.240 --> 0:16:23.880
<v Speaker 1>Now for Talking tech and first up app design software

0:16:23.960 --> 0:16:26.480
<v Speaker 1>maker Figma and some of its investors are looking to

0:16:26.560 --> 0:16:29.320
<v Speaker 1>raise one million dollars in its USIPO and what could

0:16:29.320 --> 0:16:29.600
<v Speaker 1>be one.

0:16:29.560 --> 0:16:30.680
<v Speaker 2>Of the biggest listings of the year.

0:16:30.680 --> 0:16:32.600
<v Speaker 1>It can value the company up to thirteen point six

0:16:32.680 --> 0:16:35.360
<v Speaker 1>billion dollars based on filings. The move comes after the

0:16:35.400 --> 0:16:37.720
<v Speaker 1>plans sale to Adobe and remember fell through in twenty

0:16:37.800 --> 0:16:38.280
<v Speaker 1>twenty three.

0:16:38.640 --> 0:16:41.480
<v Speaker 2>Plus Uber well, it's doing a group of lawyers and medical.

0:16:41.160 --> 0:16:44.640
<v Speaker 1>Providers in LA alleging they made fraudulent insurance claims that

0:16:44.640 --> 0:16:45.560
<v Speaker 1>cost the company.

0:16:45.280 --> 0:16:46.320
<v Speaker 2>Millions and legal fees.

0:16:46.440 --> 0:16:49.720
<v Speaker 1>Now Uber accused the defendants of directing passengers to pre

0:16:49.760 --> 0:16:53.680
<v Speaker 1>selected medical providers who submitted inflated bills to treat negligible

0:16:53.800 --> 0:16:56.960
<v Speaker 1>or non existing injuries from minor collisions between twenty nineteen

0:16:57.000 --> 0:16:59.960
<v Speaker 1>and twenty twenty four, and the Crypto Exchange back by

0:17:00.080 --> 0:17:03.120
<v Speaker 1>Peter Teel That's Bullish, has filed for an IPO too.

0:17:03.400 --> 0:17:05.680
<v Speaker 2>The offering is being led by JP Morgan Jefferson.

0:17:05.720 --> 0:17:08.480
<v Speaker 1>Citigroup is the latest company in the growing crypto market

0:17:08.520 --> 0:17:11.680
<v Speaker 1>pursuing a public listing this year. Look, there's another company

0:17:12.040 --> 0:17:16.120
<v Speaker 1>set to access crypto by public markets, the Ether Machine.

0:17:16.359 --> 0:17:19.439
<v Speaker 1>The firm is a combination of dynamics and the Ether reserve,

0:17:19.520 --> 0:17:23.679
<v Speaker 1>creating an Ether treasury with over four hundred thousand Ether tokens.

0:17:24.040 --> 0:17:27.960
<v Speaker 1>Who in more is Andrew Keyes Ether Machine chairman co

0:17:28.040 --> 0:17:31.879
<v Speaker 1>founder Andrew There are a fair few companies doing this

0:17:31.960 --> 0:17:33.879
<v Speaker 1>digital asset treasury play.

0:17:34.280 --> 0:17:35.280
<v Speaker 2>Why are you the one to go with?

0:17:36.600 --> 0:17:36.760
<v Speaker 10>So?

0:17:36.840 --> 0:17:40.560
<v Speaker 11>We are not a buy and hold treasury. We are

0:17:40.600 --> 0:17:47.520
<v Speaker 11>an institutional vehicle that is generating risk adjusted returns actively

0:17:47.760 --> 0:17:53.040
<v Speaker 11>managing ether. Okay, Ether is a productive asset onlike bitcoin,

0:17:53.720 --> 0:17:56.720
<v Speaker 11>and in doing and having Ether on our balance sheet,

0:17:57.040 --> 0:18:00.960
<v Speaker 11>we have to stake it and use it to participate

0:18:01.040 --> 0:18:04.760
<v Speaker 11>in the decentralized financial economy where we're able to actively

0:18:04.840 --> 0:18:05.600
<v Speaker 11>generate yield.

0:18:06.200 --> 0:18:09.359
<v Speaker 1>Okay, you'll also know not the only one that's looking

0:18:09.400 --> 0:18:10.760
<v Speaker 1>to bring yield.

0:18:11.160 --> 0:18:13.359
<v Speaker 2>I think what bit mine and others are doing out there.

0:18:13.520 --> 0:18:14.320
<v Speaker 2>So how do you.

0:18:14.240 --> 0:18:17.679
<v Speaker 1>Distinguish yourselves as the experience with which to allocate the

0:18:17.920 --> 0:18:20.440
<v Speaker 1>experience with which to drive yield. I know that you're

0:18:20.800 --> 0:18:22.920
<v Speaker 1>age old in the ETH space and a co founder

0:18:22.920 --> 0:18:25.399
<v Speaker 1>of Consensus, but well, the CEO of Consensus and the

0:18:25.440 --> 0:18:27.400
<v Speaker 1>guy co founded eth is backing another one.

0:18:28.200 --> 0:18:32.840
<v Speaker 11>Yeah, so we have amassed the avengers of Ethereum. Our

0:18:33.280 --> 0:18:39.199
<v Speaker 11>technology team is unparalleled in experience and the creation of

0:18:39.280 --> 0:18:45.679
<v Speaker 11>proprietary technology to generate this yield. And basically we're able

0:18:45.720 --> 0:18:50.040
<v Speaker 11>to outperform the exchange traded funds that don't have yield

0:18:50.520 --> 0:18:54.479
<v Speaker 11>and the ETPs that are only able to participate fifty

0:18:54.520 --> 0:18:59.119
<v Speaker 11>percent capacity in staking. And we are able to steak

0:18:59.640 --> 0:19:02.359
<v Speaker 11>which is the only thing that the ETFs would be

0:19:02.359 --> 0:19:05.760
<v Speaker 11>able to do, restake, which is using Ethereum's proof of

0:19:05.760 --> 0:19:11.400
<v Speaker 11>steak mechanism to secure other middlewars and then use ether

0:19:11.600 --> 0:19:15.399
<v Speaker 11>as a pristine collateral in the DeFi economy to further

0:19:16.000 --> 0:19:17.160
<v Speaker 11>generate additional yield.

0:19:17.560 --> 0:19:20.560
<v Speaker 1>What's interesting is this is almost about a little bit

0:19:20.600 --> 0:19:24.640
<v Speaker 1>of pr for the Ethereum ecosystem. More broadly, you talk

0:19:24.640 --> 0:19:28.720
<v Speaker 1>about it catalyzing the ecosystem, and you've got some big

0:19:28.760 --> 0:19:32.000
<v Speaker 1>institutional strategic players who come on board with this particular

0:19:32.040 --> 0:19:34.720
<v Speaker 1>initial announcement. I think in Pantera thinking crack and how

0:19:34.760 --> 0:19:36.760
<v Speaker 1>long do they hold? How long do they stay with

0:19:36.880 --> 0:19:40.120
<v Speaker 1>you after this back is completed and you continue to trade.

0:19:40.880 --> 0:19:44.120
<v Speaker 11>So all of our capital partners, we believe our long

0:19:44.240 --> 0:19:47.600
<v Speaker 11>term money. We had no fast money in this vehicle.

0:19:48.200 --> 0:19:52.240
<v Speaker 11>And these are other people that believe that Ethereum is

0:19:52.320 --> 0:19:56.280
<v Speaker 11>essentially the next generation of the Internet. With Bitcoin, you

0:19:56.400 --> 0:19:59.680
<v Speaker 11>have one asset that is moving on that ledger, the

0:19:59.760 --> 0:20:04.840
<v Speaker 11>bit coin. With Etherium, you can have and tokenize infinite

0:20:04.920 --> 0:20:08.760
<v Speaker 11>assets such as stable coins, real world assets like parcels

0:20:08.760 --> 0:20:14.440
<v Speaker 11>of lands, stocks, bonds, derivatives, and with those tokenized assets

0:20:14.760 --> 0:20:18.240
<v Speaker 11>you can deploy them into what are called smart contracts,

0:20:18.400 --> 0:20:24.200
<v Speaker 11>so arbitrarily complex legal agreements. And we believe that Ethereum

0:20:24.320 --> 0:20:27.320
<v Speaker 11>is in the earliest innings of the next generation.

0:20:27.000 --> 0:20:27.720
<v Speaker 6>Of the Internet.

0:20:28.000 --> 0:20:31.720
<v Speaker 1>It's interesting that if has so lagged Bitcoin as an

0:20:31.760 --> 0:20:35.359
<v Speaker 1>institutional play though, and we just think in the recent

0:20:35.480 --> 0:20:38.840
<v Speaker 1>years we have has seen it just not perform in

0:20:38.880 --> 0:20:41.600
<v Speaker 1>the way that bitcoin has as an institutional asset. But

0:20:41.680 --> 0:20:43.760
<v Speaker 1>now you get the Genius Act potentially going to give

0:20:43.800 --> 0:20:45.360
<v Speaker 1>more regulatory calater clarity.

0:20:45.400 --> 0:20:48.639
<v Speaker 2>Now you get the bet on DeFi. How do you.

0:20:48.640 --> 0:20:52.280
<v Speaker 1>Think though it can perform against Solana or other rival protocols.

0:20:52.320 --> 0:20:57.760
<v Speaker 11>Briefly, so, Etherium is the largest beneficiary of these regulatory

0:20:57.760 --> 0:21:05.600
<v Speaker 11>tailwinds because Ethereum is where these assets reside. Ninety percent

0:21:05.640 --> 0:21:10.040
<v Speaker 11>of stable coins and high quality liquid assets reside on Ethereum,

0:21:10.280 --> 0:21:14.640
<v Speaker 11>whereas only ten percent are displayed between the other blockchains.

0:21:15.200 --> 0:21:20.399
<v Speaker 11>And furthermore, we believe that Ethereum is poised to have

0:21:20.640 --> 0:21:25.760
<v Speaker 11>essentially what we call a gravitational pull, where more of

0:21:25.800 --> 0:21:29.040
<v Speaker 11>these assets are going to be settled on top of Etheria.

0:21:29.400 --> 0:21:34.200
<v Speaker 1>Andrew Keys, ether Machine, chairman of it, thanks for joining today. Meanwhile,

0:21:34.440 --> 0:21:37.440
<v Speaker 1>talk about Polymarket, crypto betting platform that was kicked off

0:21:37.440 --> 0:21:38.840
<v Speaker 1>shore by federal regulators.

0:21:39.040 --> 0:21:41.800
<v Speaker 2>It's just stuck a deal to return to the United

0:21:41.800 --> 0:21:43.160
<v Speaker 2>States markets.

0:21:42.720 --> 0:21:45.280
<v Speaker 1>Just weeks after prosecutors shut down a probe of the company.

0:21:45.440 --> 0:21:47.399
<v Speaker 1>How is it doing it? So to say it will

0:21:47.440 --> 0:21:50.919
<v Speaker 1>buy a little known derivatives exchange called QCX, which will

0:21:50.960 --> 0:21:53.119
<v Speaker 1>allow polymarket to legally re.

0:21:53.119 --> 0:21:55.000
<v Speaker 2>Enter the country.

0:22:00.240 --> 0:22:02.320
<v Speaker 1>Welcome back to Bloomberg Tech and let's get a check

0:22:02.320 --> 0:22:03.560
<v Speaker 1>on these markets. So I'm going to take you to

0:22:03.720 --> 0:22:06.600
<v Speaker 1>Verizon because shares are higher. After the company posted second

0:22:06.640 --> 0:22:09.600
<v Speaker 1>quarter of revenue the beat analyst expectations WEPC four and

0:22:09.640 --> 0:22:12.199
<v Speaker 1>a half percent. The mobile phone company also raised the

0:22:12.200 --> 0:22:15.320
<v Speaker 1>profit outlook and excited whiles price increases as well as

0:22:15.440 --> 0:22:18.440
<v Speaker 1>US taps with the price and CEO Hans Westburg spoke

0:22:18.480 --> 0:22:19.200
<v Speaker 1>with Blomberg Alia.

0:22:19.240 --> 0:22:19.680
<v Speaker 2>Take listen.

0:22:20.480 --> 0:22:23.480
<v Speaker 4>Now, if you look at the quarter and actually the

0:22:23.560 --> 0:22:28.320
<v Speaker 4>last four quarters, our strategy is working. We have a

0:22:28.359 --> 0:22:31.040
<v Speaker 4>lot of vectors of growth all the way from our

0:22:31.080 --> 0:22:35.760
<v Speaker 4>broadband fixed wires access, our step ups, prepaid is growing,

0:22:36.000 --> 0:22:38.520
<v Speaker 4>and then we have our adjacent services with perks and

0:22:38.600 --> 0:22:41.320
<v Speaker 4>all of that, so all of them are actually contributing.

0:22:41.320 --> 0:22:43.800
<v Speaker 4>And then the last i would say three four quarters

0:22:43.840 --> 0:22:46.560
<v Speaker 4>were also been very good and discipline our cost levels,

0:22:46.640 --> 0:22:49.800
<v Speaker 4>so we get the leverage. Our ABITA was twelve point

0:22:49.800 --> 0:22:52.280
<v Speaker 4>eight billion dollars of growth of four so we'll raised

0:22:52.320 --> 0:22:55.879
<v Speaker 4>the guidance both for ABTA EPs and free cash flow,

0:22:56.160 --> 0:23:00.879
<v Speaker 4>all of them sort of coming from the generation of financials,

0:23:00.880 --> 0:23:03.800
<v Speaker 4>but it's based on the customer offerings where built over

0:23:03.840 --> 0:23:06.040
<v Speaker 4>the last year, and there is really resonating with the

0:23:06.119 --> 0:23:10.040
<v Speaker 4>market either on broadband or wireless, and for all customers.

0:23:10.040 --> 0:23:12.360
<v Speaker 4>We're serving all customers the United States, all the way

0:23:12.359 --> 0:23:17.120
<v Speaker 4>from the governmental or federal customers to large enterprise SMBs

0:23:17.119 --> 0:23:20.560
<v Speaker 4>and consumers. So that's what you see right now, resonating

0:23:20.560 --> 0:23:23.479
<v Speaker 4>with the financials. But ultimately it's about having the right

0:23:23.560 --> 0:23:24.760
<v Speaker 4>offerings for our customers.

0:23:25.160 --> 0:23:28.280
<v Speaker 2>All about earnings. This week, that was Verizon CEO Hans Fezberg.

0:23:28.720 --> 0:23:31.680
<v Speaker 1>Now let's talk about how private equity firm Blackstone has

0:23:31.720 --> 0:23:33.679
<v Speaker 1>just pulled out of a group of investors seeking to

0:23:33.720 --> 0:23:37.040
<v Speaker 1>take a minority stake in TikTok's US based business.

0:23:37.240 --> 0:23:38.840
<v Speaker 2>And this is all according to a source who.

0:23:38.720 --> 0:23:41.200
<v Speaker 1>Says the firm has ceded its potential state to other

0:23:41.240 --> 0:23:45.640
<v Speaker 1>investors in the consortium, which includes Oracle and recent Horowitz.

0:23:45.480 --> 0:23:47.920
<v Speaker 2>And General Atlantic are coming up.

0:23:48.240 --> 0:23:50.880
<v Speaker 1>Excel partner Ben Fletcher joins us to talk about one

0:23:50.880 --> 0:23:52.320
<v Speaker 1>of Europe's latest uniforms.

0:23:53.000 --> 0:23:54.040
<v Speaker 2>It says bring back tech.

0:24:06.400 --> 0:24:09.520
<v Speaker 1>Interest in AI coding tools remains high among users and

0:24:09.640 --> 0:24:13.120
<v Speaker 1>mention capital alike ACEL has led a recent two orred

0:24:13.119 --> 0:24:16.400
<v Speaker 1>million dollar Series A route into Swedish vibe coding startup

0:24:16.600 --> 0:24:19.960
<v Speaker 1>Lovable and startup has become Europe's latest unicorn with evaluation

0:24:20.080 --> 0:24:22.320
<v Speaker 1>of one point eight billion. For more, let's bring an

0:24:22.320 --> 0:24:25.920
<v Speaker 1>Excel partner Ben Fletcher, So, Ben, what stood out for Lovable?

0:24:26.040 --> 0:24:29.240
<v Speaker 1>Why back it with such a significant sized Series A

0:24:29.480 --> 0:24:30.640
<v Speaker 1>for European standards?

0:24:31.760 --> 0:24:33.760
<v Speaker 12>Yeah, I think it's a couple of things. First off,

0:24:33.760 --> 0:24:35.720
<v Speaker 12>thanks for having me on. It's really great to be

0:24:35.760 --> 0:24:37.600
<v Speaker 12>here and to chat a little bit more about Lovable.

0:24:38.080 --> 0:24:40.399
<v Speaker 12>But when we spent time with Anton and Fabia and

0:24:40.440 --> 0:24:43.240
<v Speaker 12>the two co founders, it was really really impressive to

0:24:43.280 --> 0:24:46.800
<v Speaker 12>see that they were a really, really technical crew. So

0:24:46.880 --> 0:24:49.040
<v Speaker 12>they had worked in research, they had worked in applied

0:24:49.119 --> 0:24:52.240
<v Speaker 12>AI research, but they were building a tool that was

0:24:52.320 --> 0:24:55.560
<v Speaker 12>applicable to the masses. So only one percent of the

0:24:55.560 --> 0:24:58.720
<v Speaker 12>world's population can code, and then the ninety nine percent

0:24:59.040 --> 0:25:01.400
<v Speaker 12>don't have that ability to code or to be able

0:25:01.440 --> 0:25:03.960
<v Speaker 12>to create things for the web. And so when they

0:25:04.000 --> 0:25:08.640
<v Speaker 12>looked at their experience of building applied AI systems, they

0:25:08.640 --> 0:25:10.439
<v Speaker 12>were to be able to take that and put it

0:25:10.480 --> 0:25:13.640
<v Speaker 12>to a platform that they built called Lovable that allows

0:25:13.680 --> 0:25:17.280
<v Speaker 12>them to offer to their users the ability to chat

0:25:17.440 --> 0:25:20.360
<v Speaker 12>or text based prompt to be able to create.

0:25:20.160 --> 0:25:21.800
<v Speaker 13>Fully fledged applications.

0:25:22.000 --> 0:25:24.000
<v Speaker 12>So that's a front end with a back end and

0:25:24.040 --> 0:25:25.639
<v Speaker 12>a fully working application.

0:25:26.080 --> 0:25:28.760
<v Speaker 13>This is pretty incredible. If you talk with users, they say.

0:25:28.560 --> 0:25:31.600
<v Speaker 12>It's magic, and so all those things got us really

0:25:31.640 --> 0:25:33.120
<v Speaker 12>excited to invest in Lovable.

0:25:33.160 --> 0:25:35.720
<v Speaker 1>I mean, attraction has been phenomenal. I'm interested as to

0:25:35.760 --> 0:25:38.920
<v Speaker 1>who attraction then really ends up being with, because often

0:25:38.960 --> 0:25:41.200
<v Speaker 1>it's the non technical founder who just wants to sort

0:25:41.200 --> 0:25:43.800
<v Speaker 1>of put together initial idea of what the website where

0:25:43.800 --> 0:25:46.520
<v Speaker 1>they looks like and then they actually get a developer involved.

0:25:46.880 --> 0:25:49.480
<v Speaker 1>How long until that developer is no longer needed.

0:25:52.280 --> 0:25:55.399
<v Speaker 12>The nice thing is is it's been non technical folks.

0:25:55.440 --> 0:25:56.919
<v Speaker 13>It's been semi technical.

0:25:56.560 --> 0:26:00.639
<v Speaker 12>Folks and technical folks that are using Lovable about the

0:26:00.720 --> 0:26:03.560
<v Speaker 12>technical folks that are using it on the weekends, making

0:26:03.600 --> 0:26:06.439
<v Speaker 12>it easier for them to get applications up and running.

0:26:06.680 --> 0:26:09.160
<v Speaker 12>And then you see semi technical folks, maybe the product

0:26:09.160 --> 0:26:12.040
<v Speaker 12>manager or the person that has had experience in the

0:26:12.080 --> 0:26:14.760
<v Speaker 12>past but wants to build something or they want to

0:26:14.760 --> 0:26:17.240
<v Speaker 12>be able to spin up a prototype and then pass

0:26:17.280 --> 0:26:19.760
<v Speaker 12>it on to their technical or their developer team.

0:26:20.119 --> 0:26:21.080
<v Speaker 13>And then as folks that have.

0:26:21.080 --> 0:26:24.600
<v Speaker 12>Never had any experience, or don't understand frameworks, or don't

0:26:24.680 --> 0:26:28.480
<v Speaker 12>understand different coding languages and their ability to actually get

0:26:28.520 --> 0:26:30.840
<v Speaker 12>something spun up and to be able to build a

0:26:30.840 --> 0:26:32.200
<v Speaker 12>fully functioning application.

0:26:32.520 --> 0:26:34.600
<v Speaker 13>So all those folks are now are using it.

0:26:34.960 --> 0:26:38.520
<v Speaker 12>We see this as a way to give the power

0:26:38.520 --> 0:26:40.840
<v Speaker 12>to the masses to be able to create. So now

0:26:40.840 --> 0:26:43.199
<v Speaker 12>if you have an idea, you can now build and

0:26:43.240 --> 0:26:45.800
<v Speaker 12>you can have full software to be able to have

0:26:45.920 --> 0:26:48.960
<v Speaker 12>a working prototype or also a working application.

0:26:49.359 --> 0:26:52.520
<v Speaker 1>And I don't want to be sensationists, but I'm interested therefore,

0:26:52.520 --> 0:26:56.520
<v Speaker 1>push us forward ten years, twenty years. Developers still a

0:26:56.600 --> 0:26:59.800
<v Speaker 1>role one needs engineering, Still something that someone's going into

0:27:00.080 --> 0:27:02.199
<v Speaker 1>for engineering, I.

0:27:02.200 --> 0:27:03.280
<v Speaker 13>Would say absolutely.

0:27:03.840 --> 0:27:07.040
<v Speaker 12>I would say absolutely, Like you think about the engineers

0:27:07.080 --> 0:27:09.600
<v Speaker 12>that are building a lot, and it's always been how

0:27:09.600 --> 0:27:12.760
<v Speaker 12>do we abstract more and more things over time? And

0:27:12.840 --> 0:27:16.320
<v Speaker 12>so it started with cloud and with hosting with AWS,

0:27:16.920 --> 0:27:20.040
<v Speaker 12>and now you have it with applications. You always need maintenance,

0:27:20.200 --> 0:27:24.040
<v Speaker 12>You'll always need the ability to what are the right systems,

0:27:24.160 --> 0:27:26.320
<v Speaker 12>how do you make sure that everything works together?

0:27:26.720 --> 0:27:28.320
<v Speaker 13>And it will go more into.

0:27:28.240 --> 0:27:31.800
<v Speaker 12>The critical thinking and the critical aspects around engineering.

0:27:33.200 --> 0:27:36.560
<v Speaker 1>Oh, go ahead, Well, no, I'm interested in talent writ

0:27:36.680 --> 0:27:39.240
<v Speaker 1>large a little bit at this moment, Ben, and you'll

0:27:39.280 --> 0:27:42.200
<v Speaker 1>see why within my question that you're saying how you've

0:27:42.200 --> 0:27:46.280
<v Speaker 1>batted them because of just the sheer, agility and expertise

0:27:46.359 --> 0:27:49.800
<v Speaker 1>that Anton and team bring. Now I'm thinking of another

0:27:50.240 --> 0:27:53.880
<v Speaker 1>coding application company like a Windsurf for example, which also

0:27:53.920 --> 0:27:57.240
<v Speaker 1>helps developers right code. And the fact that that very

0:27:57.359 --> 0:27:59.879
<v Speaker 1>elite part of the team basically got siphoned off to

0:28:00.280 --> 0:28:02.680
<v Speaker 1>Google this licensing deal. Qull it what you will, whether

0:28:02.720 --> 0:28:05.359
<v Speaker 1>it's an aquaha or not. Then how are you thinking

0:28:05.440 --> 0:28:08.720
<v Speaker 1>about structuring these deals going forward to protect all talent

0:28:09.000 --> 0:28:11.960
<v Speaker 1>and your own bet on lovable.

0:28:12.880 --> 0:28:15.800
<v Speaker 12>Well, the nice thing is that where we sit and

0:28:15.840 --> 0:28:19.800
<v Speaker 12>where we partner, we're constantly partnering with entrepreneurs and our

0:28:19.880 --> 0:28:21.959
<v Speaker 12>idea is to make sure that we can align our

0:28:21.960 --> 0:28:24.840
<v Speaker 12>interest with them to build the biggest companies as possible

0:28:24.880 --> 0:28:27.480
<v Speaker 12>and companies that are really going to matter. Now you're

0:28:27.520 --> 0:28:32.160
<v Speaker 12>talking more around you know, M and A and acquihirres

0:28:32.480 --> 0:28:37.399
<v Speaker 12>and deals that are being structured from an enterprise perspective.

0:28:38.320 --> 0:28:40.920
<v Speaker 12>For us, it's always about one how do we make

0:28:40.920 --> 0:28:44.000
<v Speaker 12>sure that we can align our incentives with partners, so

0:28:44.040 --> 0:28:46.040
<v Speaker 12>with the companies that we're going to partner with and

0:28:46.080 --> 0:28:47.760
<v Speaker 12>then how do we make sure that we can support

0:28:47.800 --> 0:28:50.480
<v Speaker 12>them and we can support them to the best outcome

0:28:50.520 --> 0:28:51.760
<v Speaker 12>and what they ultimately want.

0:28:52.000 --> 0:28:53.840
<v Speaker 13>If they want to go and they want to work

0:28:53.840 --> 0:28:55.720
<v Speaker 13>at these larger companies, that's that's great.

0:28:55.760 --> 0:28:57.600
<v Speaker 12>We want to make sure that we can support them

0:28:57.880 --> 0:29:00.040
<v Speaker 12>and make sure that they have the ability to do that.

0:29:00.360 --> 0:29:03.360
<v Speaker 12>We'll also make sure that we protect URLPS and our

0:29:03.400 --> 0:29:06.160
<v Speaker 12>investors and make sure that we can return capital to them.

0:29:06.400 --> 0:29:10.120
<v Speaker 12>And so very similarly with Scale AI and with Meta,

0:29:10.680 --> 0:29:14.880
<v Speaker 12>Alex had an incredible opportunity. And the amazing thing is

0:29:14.920 --> 0:29:18.720
<v Speaker 12>that we still own as investors fifty percent of the

0:29:18.840 --> 0:29:21.800
<v Speaker 12>entity going forward, and so we saw it as an

0:29:21.840 --> 0:29:25.400
<v Speaker 12>awesome opportunity where a great company like Scale AI gets

0:29:25.440 --> 0:29:29.000
<v Speaker 12>to go and reshape AI in the future as well

0:29:29.040 --> 0:29:30.920
<v Speaker 12>as there's a lot of value that will continue to

0:29:30.920 --> 0:29:34.239
<v Speaker 12>being created and accrued over time to the investors and

0:29:34.280 --> 0:29:35.120
<v Speaker 12>to URLPS.

0:29:35.480 --> 0:29:35.600
<v Speaker 10>Well.

0:29:35.640 --> 0:29:39.040
<v Speaker 1>Certainly Cognition thought that about Windsorf, so all can win

0:29:39.200 --> 0:29:42.640
<v Speaker 1>in certain situations. Ben Fletcher, Axcel Partner, it's great to

0:29:42.680 --> 0:29:44.680
<v Speaker 1>have some time with you. Thank you very much, Indean.

0:29:44.720 --> 0:29:47.560
<v Speaker 1>Now let's talk about larger trends in venture investing two

0:29:47.680 --> 0:29:50.200
<v Speaker 1>and Pitchbook to release its funding data for the first

0:29:50.240 --> 0:29:53.440
<v Speaker 1>half of twenty twenty five. Senior Venture Capital Research Anasov

0:29:53.480 --> 0:29:55.920
<v Speaker 1>at Pitchbook, Emily Sung joins us.

0:29:55.800 --> 0:29:57.760
<v Speaker 2>Now and Emily Look.

0:29:58.200 --> 0:30:01.600
<v Speaker 1>One of the focuses has been an exit how much

0:30:01.640 --> 0:30:05.880
<v Speaker 1>of these aquahys bringing numbers in terms for you on

0:30:05.920 --> 0:30:09.760
<v Speaker 1>what is happening in Pitchmook data.

0:30:09.880 --> 0:30:13.080
<v Speaker 10>Emina activity has been really interesting because a lot of

0:30:13.120 --> 0:30:17.200
<v Speaker 10>startups are really leading this trend. Because of the FTC

0:30:17.400 --> 0:30:21.239
<v Speaker 10>leadership hasn't really changed much in the EMMA landscape. This

0:30:21.320 --> 0:30:24.440
<v Speaker 10>has really led a lot of large startups to be

0:30:24.720 --> 0:30:29.440
<v Speaker 10>the forefront of acquires. But I think what's really interesting

0:30:29.520 --> 0:30:34.239
<v Speaker 10>and what the biggest topic in Q two was was IPOs.

0:30:34.800 --> 0:30:39.200
<v Speaker 10>IPOs did come back modestly, but I would say it's

0:30:39.240 --> 0:30:41.200
<v Speaker 10>more of a reset rather than a rebound.

0:30:41.680 --> 0:30:45.200
<v Speaker 1>Okay, so we're now thinking, well, Figma is the one

0:30:45.240 --> 0:30:47.600
<v Speaker 1>to watch. They're already on their road show Eminy, So

0:30:48.240 --> 0:30:50.160
<v Speaker 1>is that going to be yet another one that helps

0:30:50.200 --> 0:30:52.120
<v Speaker 1>push open the door or really we're going to have

0:30:52.160 --> 0:30:54.160
<v Speaker 1>a tricular effect when it comes to IPOs.

0:30:55.840 --> 0:30:59.160
<v Speaker 10>Currently, there hasn't been a really rush towards new filings,

0:30:59.200 --> 0:31:01.680
<v Speaker 10>mainly because of the August one and tariff deadline that

0:31:02.080 --> 0:31:05.640
<v Speaker 10>hasn't addressed a lot of key policy questions that still

0:31:05.680 --> 0:31:09.240
<v Speaker 10>need to be answered. For a FIGMA specifically, what's interesting

0:31:09.400 --> 0:31:12.560
<v Speaker 10>is that it's an order company, it's about thirteen years old,

0:31:12.960 --> 0:31:14.440
<v Speaker 10>and it also has a really.

0:31:14.280 --> 0:31:15.400
<v Speaker 13>Large crypto balance.

0:31:15.800 --> 0:31:18.160
<v Speaker 10>And a trend we've been seeing recently with the new

0:31:18.160 --> 0:31:22.400
<v Speaker 10>Trump administration is sectors that are focused on key policy

0:31:22.400 --> 0:31:27.920
<v Speaker 10>parties like crypto, AI, national security, defense and fintech has

0:31:28.000 --> 0:31:30.760
<v Speaker 10>really propelled recent exit activity.

0:31:31.240 --> 0:31:34.160
<v Speaker 1>We're just hearing about Bullish looking to IPO as well.

0:31:34.240 --> 0:31:37.160
<v Speaker 1>So another one that adds to that crypto vibe eminy.

0:31:37.680 --> 0:31:39.120
<v Speaker 2>What about just more.

0:31:39.000 --> 0:31:42.200
<v Speaker 1>Generally liquidity needs so it takes people to the market

0:31:42.520 --> 0:31:46.280
<v Speaker 1>is because often it's your employees, your the VCS that are.

0:31:46.200 --> 0:31:46.600
<v Speaker 6>Back to you.

0:31:46.640 --> 0:31:47.640
<v Speaker 2>They want this moment.

0:31:48.320 --> 0:31:51.680
<v Speaker 1>Are you seeing liquidity needs though, be satiated in the

0:31:51.720 --> 0:31:52.960
<v Speaker 1>secondary market a lot more?

0:31:54.480 --> 0:31:57.920
<v Speaker 10>The secondary market is really interesting. It has been growing rapidly.

0:31:58.240 --> 0:32:02.680
<v Speaker 10>I publish a quarterly report on I pitchbook and the

0:32:02.840 --> 0:32:07.080
<v Speaker 10>market currently is about sixty billion dollars and that's significant,

0:32:07.080 --> 0:32:09.880
<v Speaker 10>and that's the annual value as of Q one, But

0:32:10.120 --> 0:32:13.480
<v Speaker 10>sixty billion, for context, is about two percent of primary

0:32:13.560 --> 0:32:17.440
<v Speaker 10>Unicorn valuations and about a quarter's worth of primary VC

0:32:17.560 --> 0:32:21.440
<v Speaker 10>exit value, So it's notable, but it's also not big

0:32:21.560 --> 0:32:25.520
<v Speaker 10>enough to be the new IPO for example. And with

0:32:25.640 --> 0:32:30.720
<v Speaker 10>the secondary market, it's important to realize that the concentration

0:32:31.120 --> 0:32:35.520
<v Speaker 10>is super high in the top twenty to fifty unicorns,

0:32:35.840 --> 0:32:39.200
<v Speaker 10>So unless you're an investor in one of these top startups,

0:32:39.280 --> 0:32:42.840
<v Speaker 10>you're not necessarily benefiting much from the secondary's market right now.

0:32:43.160 --> 0:32:45.400
<v Speaker 10>But there is a lot of growth in the space.

0:32:46.400 --> 0:32:51.640
<v Speaker 10>The number of funds that have invested in VC secondaries,

0:32:51.920 --> 0:32:55.200
<v Speaker 10>the total fund value has doubled since twenty twenty two,

0:32:56.040 --> 0:32:59.280
<v Speaker 10>which really shows investor interest in the secondary space. And

0:32:59.360 --> 0:33:01.640
<v Speaker 10>I do for you continuing to grow.

0:33:01.880 --> 0:33:04.080
<v Speaker 1>I mean, you talk about that concentration when it's looking

0:33:04.120 --> 0:33:06.320
<v Speaker 1>at those that are able to tap the secondary market,

0:33:06.680 --> 0:33:09.040
<v Speaker 1>what about concentration and those that can ultimately come for

0:33:09.080 --> 0:33:11.600
<v Speaker 1>an IPO as well. I mean, there's no surprise that

0:33:11.600 --> 0:33:13.480
<v Speaker 1>Figma is probably going to be leaning in on its

0:33:13.720 --> 0:33:17.040
<v Speaker 1>AI advantages. Is it still all about gen ai and

0:33:17.120 --> 0:33:18.000
<v Speaker 1>that trend.

0:33:19.240 --> 0:33:23.320
<v Speaker 10>Ai is really dominating VC right now. It's captured about

0:33:23.320 --> 0:33:26.400
<v Speaker 10>two thirds of the deal value in twenty twenty five,

0:33:26.680 --> 0:33:28.960
<v Speaker 10>but only about a third of the deal count, which

0:33:29.000 --> 0:33:32.880
<v Speaker 10>really shows the concentration in AI, and I think AI

0:33:32.920 --> 0:33:35.680
<v Speaker 10>will continue to be a really big theme. Of course,

0:33:36.040 --> 0:33:39.560
<v Speaker 10>foundational models have captured a lot of VC dollars in interest,

0:33:39.880 --> 0:33:43.080
<v Speaker 10>but what's also really interesting is that AI is fundamentally

0:33:43.240 --> 0:33:48.880
<v Speaker 10>changing how businesses are operating and their fundamental models throughout

0:33:48.960 --> 0:33:52.880
<v Speaker 10>a variety of sectors. So it is really transformative and

0:33:52.960 --> 0:33:55.680
<v Speaker 10>that's why I Venture is funneling a lot of dollars

0:33:55.680 --> 0:33:56.400
<v Speaker 10>into the space.

0:33:57.400 --> 0:34:00.000
<v Speaker 2>And lastly, were talking very much.

0:34:00.080 --> 0:34:02.000
<v Speaker 1>I know you focus on the US in terms of

0:34:02.040 --> 0:34:03.720
<v Speaker 1>the data, but what does.

0:34:03.600 --> 0:34:04.720
<v Speaker 2>It look like globally.

0:34:04.760 --> 0:34:06.560
<v Speaker 1>It's still the US the nexus when it comes to

0:34:06.560 --> 0:34:08.600
<v Speaker 1>at least coming and tapping the IPO market and more

0:34:08.640 --> 0:34:10.920
<v Speaker 1>companies coming internationally to tap that market.

0:34:12.480 --> 0:34:15.879
<v Speaker 10>The US is currently still dominating the IPO market and

0:34:16.520 --> 0:34:20.919
<v Speaker 10>in general, across the world, deal making exit activity has

0:34:20.960 --> 0:34:25.480
<v Speaker 10>remained muted. Venture really doesn't like volatility, and there has

0:34:25.560 --> 0:34:29.160
<v Speaker 10>been a lot of volatility recently, and until some key

0:34:29.239 --> 0:34:33.160
<v Speaker 10>questions are answered like the third for instance, the tariffs,

0:34:33.760 --> 0:34:38.120
<v Speaker 10>trade wars, geopolitical tensions, there probably won't be muted deal

0:34:38.160 --> 0:34:41.000
<v Speaker 10>making exit activity until those questions are answered.

0:34:41.600 --> 0:34:43.120
<v Speaker 2>Emmani Sung, we thank you so much.

0:34:43.280 --> 0:34:46.080
<v Speaker 1>Inventure capital research anaist over at pitchbook great to get

0:34:46.080 --> 0:34:55.760
<v Speaker 1>the breakdown. Chicago, it is host to the Global Quantum Forum,

0:34:55.800 --> 0:34:58.359
<v Speaker 1>happening this week, is where top industry leaders are set

0:34:58.400 --> 0:35:02.600
<v Speaker 1>to discuss the future of the sometimes hoped technology. Let's

0:35:02.960 --> 0:35:06.680
<v Speaker 1>join Jeremy O'Brien over in Chicago. It's High Quantum co

0:35:06.760 --> 0:35:09.440
<v Speaker 1>founder and CEO Sside Quantum. It's currently building out the

0:35:09.480 --> 0:35:12.799
<v Speaker 1>Quantum Computer campus in Chicago. And Jeremy, before I ask

0:35:12.880 --> 0:35:15.160
<v Speaker 1>exactly what you're going to be doing in the force

0:35:15.160 --> 0:35:17.719
<v Speaker 1>of quantum, but first, why was Chicago the place to

0:35:17.760 --> 0:35:19.759
<v Speaker 1>be spending I think at least a billion is what

0:35:19.760 --> 0:35:20.800
<v Speaker 1>you're committing in capital.

0:35:22.120 --> 0:35:25.600
<v Speaker 8>Yeah, so Chicago, we figured it was the best place

0:35:25.640 --> 0:35:28.680
<v Speaker 8>in the world to do what we're doing here, which

0:35:28.719 --> 0:35:33.879
<v Speaker 8>is building the country's first utility scale quantum computer. And

0:35:34.400 --> 0:35:37.400
<v Speaker 8>that's really about an understanding that that folk here have

0:35:37.560 --> 0:35:40.520
<v Speaker 8>of just how big and hard it is to build

0:35:40.520 --> 0:35:42.680
<v Speaker 8>a system of that scale.

0:35:43.360 --> 0:35:47.000
<v Speaker 1>Let's talk about, therefore, the application, because I maybe loosely

0:35:47.080 --> 0:35:50.800
<v Speaker 1>say that quantum is often hyped. The hype is around

0:35:51.000 --> 0:35:53.000
<v Speaker 1>when it can be purposeful. When it is going to

0:35:53.000 --> 0:35:56.760
<v Speaker 1>be really truly useful, we have breakthrough after breakthrough, Jeremy,

0:35:56.960 --> 0:35:59.160
<v Speaker 1>how are you going to be offering something really useful

0:35:59.160 --> 0:35:59.960
<v Speaker 1>for commercial purpose?

0:36:00.040 --> 0:36:04.080
<v Speaker 8>Yeah, you're right there. There has been a ah, a

0:36:04.120 --> 0:36:06.360
<v Speaker 8>lot of hype and a lot of talk of breakthroughs,

0:36:06.400 --> 0:36:10.600
<v Speaker 8>and fundamentally, I I my my view is that breakthroughs

0:36:11.400 --> 0:36:15.480
<v Speaker 8>UH precipitate a decade or more of of hard work,

0:36:16.120 --> 0:36:20.200
<v Speaker 8>you know, r real hard technological development. It's not breakthrough

0:36:20.239 --> 0:36:22.480
<v Speaker 8>and then suddenly you have a new technology. And that's

0:36:22.520 --> 0:36:26.840
<v Speaker 8>certainly true UH with quantum computing. And so our breakthrough

0:36:27.200 --> 0:36:31.960
<v Speaker 8>UH was a decade ago UH when we were university

0:36:32.000 --> 0:36:35.280
<v Speaker 8>professors and we figured out a path whereby we could

0:36:35.920 --> 0:36:40.279
<v Speaker 8>leverage the uh, the semiconductor industry and the trillions of

0:36:40.320 --> 0:36:43.040
<v Speaker 8>dollars that have gone into that and adjacent industries to

0:36:43.080 --> 0:36:47.600
<v Speaker 8>build uh the real thing, UH, which is a million

0:36:47.640 --> 0:36:51.880
<v Speaker 8>cubic scale UH fault tolerant, utility scale quantum computer. And

0:36:51.960 --> 0:36:54.120
<v Speaker 8>so that's what we're d that's what we're doing right

0:36:54.120 --> 0:36:55.360
<v Speaker 8>here in Chicago.

0:36:55.160 --> 0:36:58.320
<v Speaker 1>Your professor over at Stamford at Bristol Universities as well, Jeremy,

0:36:58.400 --> 0:37:01.600
<v Speaker 1>and I'm thinking about how tonics has become the area

0:37:01.680 --> 0:37:02.759
<v Speaker 1>of real focus for you.

0:37:02.840 --> 0:37:04.960
<v Speaker 2>How does that differentiate you from what others are doing.

0:37:06.360 --> 0:37:11.080
<v Speaker 8>Yeah, so you're absolutely right. It's the silicon photonics platform,

0:37:11.440 --> 0:37:16.239
<v Speaker 8>uh that we spent uh twenty years figuring out what's

0:37:16.280 --> 0:37:20.720
<v Speaker 8>the platform that enables us to leverage that semiconductor industry

0:37:21.960 --> 0:37:24.600
<v Speaker 8>because it's been my conviction since I don't know, the

0:37:24.640 --> 0:37:27.640
<v Speaker 8>mid mid to late nineties that unless we figure that out,

0:37:27.719 --> 0:37:30.879
<v Speaker 8>it's not gonna happen in my lifetime. And uh, when

0:37:30.880 --> 0:37:34.920
<v Speaker 8>we figured that out, uh, we established uh Psychonum, and

0:37:35.000 --> 0:37:39.640
<v Speaker 8>we spent you know, many years and uh much blood,

0:37:39.640 --> 0:37:43.920
<v Speaker 8>sweat and tears grinding away at the really hard uh

0:37:44.120 --> 0:37:49.080
<v Speaker 8>semiconductor engineering problems to to make that work. And now

0:37:49.080 --> 0:37:52.920
<v Speaker 8>we're at this point where we're we're poised to you know,

0:37:53.120 --> 0:37:55.480
<v Speaker 8>to break ground and build that facility here.

0:37:55.760 --> 0:37:58.520
<v Speaker 1>Can you hate to say put yourself against the competition,

0:37:58.640 --> 0:38:00.120
<v Speaker 1>but when you've got IBU.

0:38:00.040 --> 0:38:01.719
<v Speaker 2>Am out there saying here in Upstate.

0:38:01.480 --> 0:38:03.080
<v Speaker 1>You're not New York, we're going to be getting there

0:38:03.080 --> 0:38:06.680
<v Speaker 1>by twenty twenty nine, a real use case quantum computer. Jeremy,

0:38:06.680 --> 0:38:09.319
<v Speaker 1>you've got the race on with well companies we've helped

0:38:09.320 --> 0:38:12.239
<v Speaker 1>advise before. When I'm thinking about Microsoft up to AWS

0:38:12.239 --> 0:38:16.120
<v Speaker 1>and Google, where are you in comparison to that race,

0:38:16.160 --> 0:38:17.000
<v Speaker 1>as we like to put it.

0:38:18.560 --> 0:38:21.920
<v Speaker 8>Yeah, firstly, I'm not sure that it's a race when

0:38:21.960 --> 0:38:25.440
<v Speaker 8>it comes to hard technologies. It's in some sense it's

0:38:25.440 --> 0:38:29.400
<v Speaker 8>a filter, right. But you know, I can't speak for

0:38:30.640 --> 0:38:33.759
<v Speaker 8>all the other different folks that are out there are

0:38:33.800 --> 0:38:37.359
<v Speaker 8>pursuing this, but I can say that, you know, our

0:38:37.400 --> 0:38:40.600
<v Speaker 8>approach has been very different from the beginning, which is

0:38:40.640 --> 0:38:47.400
<v Speaker 8>to really focus on the scale that's required for really

0:38:47.920 --> 0:38:53.080
<v Speaker 8>valuable commercial applications. And it's been the case for twenty

0:38:53.120 --> 0:38:58.160
<v Speaker 8>five plus years that that's a million cubic scale system,

0:38:58.840 --> 0:39:01.440
<v Speaker 8>and so we have uh had nothing to do with

0:39:01.640 --> 0:39:06.680
<v Speaker 8>doing small UH demonstrations proofs of principle of quantum computing.

0:39:07.280 --> 0:39:11.160
<v Speaker 8>And that's been a a very deliberate approach because it's

0:39:11.160 --> 0:39:14.959
<v Speaker 8>a bit my You know, if you if you're trying

0:39:15.000 --> 0:39:17.560
<v Speaker 8>to get to the top of the Sears Tower here

0:39:17.600 --> 0:39:21.400
<v Speaker 8>in UH in Chicago, UH, then you know, ladders are

0:39:21.440 --> 0:39:23.360
<v Speaker 8>a good way to to try and get to the

0:39:23.640 --> 0:39:27.160
<v Speaker 8>to the top. But if you wanna get to the moon, UH,

0:39:27.239 --> 0:39:29.160
<v Speaker 8>ladders are not really the way to get you there.

0:39:29.200 --> 0:39:33.600
<v Speaker 8>And so we've taken a pretty antithetical approach, I would say,

0:39:34.480 --> 0:39:38.320
<v Speaker 8>from from the beginning, which is to really focus on scale.

0:39:38.640 --> 0:39:42.880
<v Speaker 8>And so when you're talking about a million qubet scale system,

0:39:43.120 --> 0:39:45.960
<v Speaker 8>as I said, it's been you know clear to me

0:39:46.400 --> 0:39:49.200
<v Speaker 8>uh for a very long time, right. The only way

0:39:49.280 --> 0:39:51.319
<v Speaker 8>to be able to do that is to leverage the

0:39:52.000 --> 0:39:55.919
<v Speaker 8>you know trillion dollars uh and you know better part

0:39:55.920 --> 0:39:59.360
<v Speaker 8>of a century that went into the semiconductor industry and leveraged.

0:39:59.400 --> 0:40:01.320
<v Speaker 1>So that's what and a billion that you're going to

0:40:01.360 --> 0:40:03.840
<v Speaker 1>be investing in that project. And you take us to

0:40:03.880 --> 0:40:06.000
<v Speaker 1>the Sears Tower, I go back to Chicago.

0:40:06.440 --> 0:40:08.560
<v Speaker 2>What has the workings been like with the governor?

0:40:08.640 --> 0:40:11.000
<v Speaker 1>Why have you managed to think that that is going

0:40:11.040 --> 0:40:13.080
<v Speaker 1>to be where the talent pool is basically for you

0:40:13.160 --> 0:40:13.720
<v Speaker 1>going forward?

0:40:14.880 --> 0:40:17.920
<v Speaker 8>Yeah, I think from the governor to the aldermen and

0:40:18.000 --> 0:40:23.840
<v Speaker 8>the entire ecosystem, we've really enjoyed great partnerships here and

0:40:23.880 --> 0:40:27.600
<v Speaker 8>it's been driven by, as I said earlier, the understanding

0:40:28.160 --> 0:40:31.680
<v Speaker 8>of just how big, complex and hard this project is.

0:40:32.480 --> 0:40:34.800
<v Speaker 8>To build a utility scale on a computer that's a

0:40:36.000 --> 0:40:39.400
<v Speaker 8>that's a very big, hard project. And I'll give you

0:40:39.440 --> 0:40:43.160
<v Speaker 8>just one example of that. Early in our interactions with

0:40:43.360 --> 0:40:47.520
<v Speaker 8>the city and the state, a big delegation came to

0:40:47.600 --> 0:40:52.400
<v Speaker 8>us in Silicon Valley led by the Deputy Governor and

0:40:52.440 --> 0:40:55.960
<v Speaker 8>the head of Commed. The power utility came to that

0:40:56.120 --> 0:40:59.960
<v Speaker 8>very first meeting, and I think that's a big different

0:41:00.120 --> 0:41:03.279
<v Speaker 8>intiator for us as an organization and for the ecosystem

0:41:03.320 --> 0:41:06.320
<v Speaker 8>here is to understand that, yeah, we need to get

0:41:07.120 --> 0:41:08.719
<v Speaker 8>you know, we need to get power to the side,

0:41:08.760 --> 0:41:11.279
<v Speaker 8>et cetera, et cetera. So that's that's a really big

0:41:11.320 --> 0:41:13.440
<v Speaker 8>part of our decision.

0:41:13.680 --> 0:41:17.960
<v Speaker 1>Well, Jeremy, have a great time at the Chicago Quantum event.

0:41:18.200 --> 0:41:21.719
<v Speaker 1>You are, of course Jeremy O'Brien of Side Quantum. Now

0:41:21.760 --> 0:41:23.959
<v Speaker 1>that does it for this edition of bluemg Tech, quick

0:41:24.040 --> 0:41:25.840
<v Speaker 1>check in on the NASLAK which is at a record

0:41:25.920 --> 0:41:28.600
<v Speaker 1>high once again, Nasak one hundred and two.

0:41:28.719 --> 0:41:30.320
<v Speaker 2>We have got earnings thick and fast.

0:41:30.320 --> 0:41:33.880
<v Speaker 1>This week we embrace ourselves for Wednesday, the Tesla Alphabet

0:41:33.880 --> 0:41:34.600
<v Speaker 1>and IBM.

0:41:34.880 --> 0:41:37.279
<v Speaker 2>Don't forget to check out our podcast as well. This

0:41:37.360 --> 0:41:38.160
<v Speaker 2>is bluemeg Tech