WEBVTT - Intel to Sell $15 Billion in Stock After AI Boosts Demand 0:00:02.720 --> 0:00:10.559 Bloomberg Audio Studios, podcasts, radio news. You're listening to the 0:00:10.600 --> 0:00:14.560 Bloomberg Intelligence Podcast. Catch us live weekdays at ten am 0:00:14.600 --> 0:00:18.520 Eastern on Applecarclay, and Android Auto with the Bloomberg Business App. 0:00:18.640 --> 0:00:21.840 Listen on demand wherever you get your podcasts, or watch 0:00:21.960 --> 0:00:23.520 us live on YouTube. 0:00:24.239 --> 0:00:27.200 Let's get a little techie before you. The nasdas up 0:00:27.240 --> 0:00:29.520 fourteen points today. Not much going on out there, but 0:00:29.560 --> 0:00:31.200 there's a lot of news flow out there in the 0:00:31.240 --> 0:00:33.559 tech spaces, or typically is. And for that we like 0:00:33.600 --> 0:00:36.280 to check in with our buddy, Matthew Bloxam, Bloomberg Intelligence 0:00:36.280 --> 0:00:38.600 Senior technology Analysty covers a bunch of stuff and he 0:00:38.640 --> 0:00:39.960 does it from London. 0:00:40.360 --> 0:00:43.320 Hey Matt, thanks for joining us here. I mean Intel 0:00:43.360 --> 0:00:44.160 coming to the market. 0:00:44.200 --> 0:00:47.680 Here's another big tech company coming with a big equity raise. 0:00:48.800 --> 0:00:50.680 It seems like these guys have an a safeable need 0:00:50.720 --> 0:00:51.640 for capital. 0:00:52.960 --> 0:00:55.360 Yeah, I do, that's right. So what's fifteen billion dollars? 0:00:55.440 --> 0:00:58.400 Roughly three percent of the market cap, So it's not 0:00:58.480 --> 0:01:01.040 that big, but you know, I think still always a 0:01:01.080 --> 0:01:04.320 little bit surprising when these companies come to market for equity. 0:01:05.120 --> 0:01:06.840 You know, they raised I think six and a half 0:01:06.920 --> 0:01:11.200 billion dollars in debt earlier this year, fairly expensive coup 0:01:11.200 --> 0:01:14.120 points kind of four point sixty five percent through just 0:01:14.160 --> 0:01:15.920 six point two percent. So I guess you know they're 0:01:15.959 --> 0:01:20.720 looking to balance their capital needs across different parts of 0:01:20.800 --> 0:01:26.440 the balance sheet structure. Yeah, the valuation is pretty full 0:01:26.520 --> 0:01:28.200 right now, and if you look forward a couple of years, 0:01:28.200 --> 0:01:30.640 it's on fifty times earning. So I guess you're the 0:01:31.280 --> 0:01:33.880 management team take in the view that if there was 0:01:33.920 --> 0:01:36.920 ever a time to raise some equity, this is a 0:01:36.959 --> 0:01:39.200 relatively quote unquote cheap, cheap time. 0:01:39.080 --> 0:01:39.320 To do it. 0:01:39.560 --> 0:01:42.199 You know that they, along with everybody else, have quite 0:01:42.200 --> 0:01:45.360 substantial investment needs compared to some other big tech names. 0:01:45.680 --> 0:01:48.040 Their capex is pretty low, you know, probably about twenty 0:01:48.040 --> 0:01:51.240 billion dollars this year, maybe rising to twenty six billion 0:01:51.280 --> 0:01:54.639 dollars next year. But this gives them a good cash 0:01:55.200 --> 0:01:58.720 cushion to pursue the current projects, and who knows, perhaps 0:01:58.760 --> 0:02:02.520 even consider some acceleration of what they're doing. 0:02:03.440 --> 0:02:06.480 What about Meta This morning, they've just introduced a new 0:02:06.560 --> 0:02:09.639 AI model called news Glimmer. I guess it's an open 0:02:09.639 --> 0:02:12.680 source AI model meant to compete with the Chinese model 0:02:12.720 --> 0:02:15.800 deep Seek. It's up this morning. How do you feel 0:02:15.800 --> 0:02:16.200 about it? 0:02:17.680 --> 0:02:20.080 Yeah, you know, I think we're at a fairly early 0:02:20.160 --> 0:02:25.720 stage of how the whole AI foundational model play is 0:02:25.760 --> 0:02:29.600 going to evolve. Yeah, this is quite a different position 0:02:29.919 --> 0:02:34.040 to the likes of open AI and anthropic who work 0:02:34.360 --> 0:02:37.880 with closed models. Gemini at Google with geminis a little 0:02:37.919 --> 0:02:41.040 bit kind of mixed. Some open source models and some 0:02:41.120 --> 0:02:44.760 closed models have met a very much kind of penance 0:02:45.000 --> 0:02:48.480 fortunes to the flag of the open model, and you know, 0:02:48.880 --> 0:02:50.680 really trying to kind of make a big difference in 0:02:51.040 --> 0:02:55.640 markverg today in an essay being somewhat critical of some 0:02:55.680 --> 0:02:58.880 of its competitors, you're saying that really we should be 0:02:59.120 --> 0:03:02.040 democratizing AI and putting it in the hands. 0:03:02.040 --> 0:03:02.600 Of the user. 0:03:02.680 --> 0:03:06.359 So I think you're open to see how why you 0:03:06.440 --> 0:03:09.440 adopted this will be what it means for the kind 0:03:09.440 --> 0:03:12.800 of longer term economics. Both matter in the industry, but 0:03:12.960 --> 0:03:15.520 it's certainly an interesting move, and I think as much 0:03:15.520 --> 0:03:19.200 as anything, the language and the rhetoric that Zuckerberg is 0:03:19.280 --> 0:03:22.480 using around this push Matt. 0:03:22.720 --> 0:03:26.080 You know, it's as being in these markets for forty years, 0:03:26.080 --> 0:03:30.560 it's always surprised me in a negative sense. How Europe 0:03:30.600 --> 0:03:35.000 written large basically missed the whole technology revolution. All the 0:03:35.040 --> 0:03:38.440 tech is in the US and Asia and things like that. 0:03:38.800 --> 0:03:42.920 Is the same thing happening with AI. Well, Europe just 0:03:43.040 --> 0:03:46.040 kind of outsource it to other people and not participate. 0:03:47.920 --> 0:03:51.520 It does, unfortunately seem that way. You know, we have 0:03:51.720 --> 0:03:59.000 mistrale As I guess the most well known European AI model, 0:03:59.080 --> 0:04:03.760 but it sits in the shadows of the US and 0:04:03.800 --> 0:04:08.320 the Chinese alternatives. So yeah, you know, it's a perennial 0:04:08.320 --> 0:04:10.280 problem for the regional So there's a kind of big, 0:04:10.400 --> 0:04:14.120 really big introspective process going on right now about Europe 0:04:14.160 --> 0:04:17.600 twenty thirty five and what funding is needed to kind 0:04:17.600 --> 0:04:20.720 of really close the gap and genuinely make Europe competitive enough. 0:04:21.440 --> 0:04:25.040 The numbers are eyewatering, and even if the money was there, 0:04:25.400 --> 0:04:28.040 I think there's so many kind of structural and cultural 0:04:28.080 --> 0:04:32.000 issues about the way Europe works that are very serious 0:04:32.600 --> 0:04:35.240 obstacles have to get around, and all the time they're 0:04:35.279 --> 0:04:38.599 trying to figure those issues out, the US and China 0:04:38.640 --> 0:04:41.479 are running full steam ahead. So it does. I would 0:04:41.560 --> 0:04:45.000 think the base case scenario would be that Europe continues 0:04:45.040 --> 0:04:49.160 to be a taker of technology from other parts of 0:04:49.200 --> 0:04:49.919 the world. 0:04:50.440 --> 0:04:51.040 Stay with us. 0:04:51.240 --> 0:04:53.600 More from Bloomberg Intelligence coming up after this. 0:04:57.440 --> 0:05:01.120 You're listening to the Bloomberg Intelligence podcast. Catch us Live 0:05:01.200 --> 0:05:04.279 weekdays at ten am Eastern on Apple Coarcklay and Android 0:05:04.320 --> 0:05:07.600 Auto with the Bloomberg Business app. Listen on demand wherever 0:05:07.680 --> 0:05:11.200 you get your podcasts, or watch us live on YouTube. 0:05:11.880 --> 0:05:13.200 I'm looking at Microsoft. 0:05:13.200 --> 0:05:15.560 This is a name Stacy, Tom and I, Tom Keen 0:05:15.600 --> 0:05:15.839 and I. 0:05:16.200 --> 0:05:17.880 For the longest time, we're saying just. 0:05:17.920 --> 0:05:19.600 You know, as of a week or two ago, why 0:05:19.680 --> 0:05:21.960 is this stock down twenty five percent year to date? 0:05:22.000 --> 0:05:22.960 This is Microsoft. 0:05:23.480 --> 0:05:24.880 I guess you was thrown out with a lot of 0:05:24.880 --> 0:05:26.760 those software stocks. I thought AI was going to put 0:05:26.800 --> 0:05:27.440 them out of business. 0:05:27.440 --> 0:05:28.640 But this is. 0:05:28.600 --> 0:05:32.080 Microsoft and Microsoft and it's one of the Magnificent seven. 0:05:32.320 --> 0:05:35.120 Yeah, I mean you know, so sure enough, they put 0:05:35.200 --> 0:05:39.080 up a good print last week, good earnings, stocks erased, 0:05:39.080 --> 0:05:41.919 all those losses now up three or four percent on 0:05:41.960 --> 0:05:43.120 the year, five percent for the year. 0:05:43.160 --> 0:05:44.080 So how about that. 0:05:45.120 --> 0:05:49.320 More news out on Microsoft today. They're going to raise 0:05:49.480 --> 0:05:51.640 next gen AI chip production next year. 0:05:51.680 --> 0:05:53.479 It's pretty interesting. Let's according to the information. 0:05:53.520 --> 0:05:57.440 Anurag Rana joins this senior technost for Bloomberg Intelligence on Ron. 0:05:57.800 --> 0:06:01.000 It's really amazing how the market has kind of got 0:06:01.040 --> 0:06:03.920 a new appreciation I view for the Microsoft story that 0:06:04.360 --> 0:06:08.600 I think was really people were questioning and is Microsoft 0:06:08.640 --> 0:06:10.360 at risk from AI? How do you think about it? 0:06:11.560 --> 0:06:14.040 Yeah, I mean you're absolutely right. There was that risk 0:06:14.080 --> 0:06:16.640 of disruption from some of its product from AI. But 0:06:16.680 --> 0:06:19.960 there was another risk. There was another narrative that when 0:06:19.960 --> 0:06:22.799 you look at the three hyper scale clout providers, Google, 0:06:23.640 --> 0:06:27.640 Amazon and Microsoft, Google's chip has just taken off. I 0:06:27.640 --> 0:06:30.440 mean their TPUs are all the rage in the market, 0:06:30.839 --> 0:06:34.000 and Amazon's actually come out with their own print that 0:06:34.400 --> 0:06:37.560 you know, they're making tens of billions of dollars with 0:06:37.680 --> 0:06:41.479 their own chip as well. So what happens is when 0:06:41.520 --> 0:06:44.599 you are looking at this fight of everybody expanding into 0:06:44.640 --> 0:06:48.040 AI data centers, they do need chips. They're all running 0:06:48.040 --> 0:06:51.640 to Nvidia, but two of the three providers talked about 0:06:51.680 --> 0:06:54.400 having their own chips. Now Microsoft was not in that 0:06:54.440 --> 0:06:56.120 game at that point. They have their own chip, but 0:06:56.120 --> 0:06:59.520 it's not widely embraced. But today's report when it talks 0:06:59.560 --> 0:07:02.240 about that they're going to go out and increase the 0:07:02.240 --> 0:07:04.840 production of their own chips, which means customers may be 0:07:04.960 --> 0:07:08.040 ready to use those and if that's the case, their 0:07:08.160 --> 0:07:11.679 cost of spending into that capital expenditure, you know, boom 0:07:12.040 --> 0:07:14.120 will start to go down in a sense, down on 0:07:14.160 --> 0:07:16.880 a relative basis or per token basis. So it's a 0:07:17.000 --> 0:07:19.000 very good news for them in the long run. 0:07:19.520 --> 0:07:21.600 Well Microsoft might be having a very good day, but 0:07:21.720 --> 0:07:25.400 Apple is having a pretty rotten day. What's going on 0:07:25.440 --> 0:07:28.040 with them? Apparently it has something to do with hardware 0:07:28.120 --> 0:07:29.920 not coming out the way that they're hoping. 0:07:31.080 --> 0:07:32.960 Uh no, I don't. I mean, I think that's a 0:07:33.000 --> 0:07:35.760 different somebody's downgrade. That's a different story. But when you 0:07:35.800 --> 0:07:38.320 look at Apple, and let's go back to that time 0:07:38.360 --> 0:07:41.280 period when when Paul talked about when Microsoft was down 0:07:41.920 --> 0:07:43.680 you know, twenty five percent or so over the year 0:07:43.800 --> 0:07:46.280 or you know, at that time, what was happening was 0:07:46.320 --> 0:07:49.440 everybody was worried about ROI on AI trade. This is 0:07:49.480 --> 0:07:52.320 before earning season. You know, you saw Google you So 0:07:52.400 --> 0:07:55.320 everybody was worried about them. But at the same time, 0:07:55.400 --> 0:07:58.680 everybody loved Apple because they were not spending that much money. 0:07:58.880 --> 0:08:01.520 But after the result, what has happened is people are 0:08:01.760 --> 0:08:05.160 relatively more comfortable going back to the AI trade or 0:08:05.280 --> 0:08:08.680 going after the risky assets. And given Apple's valuation where 0:08:08.680 --> 0:08:11.040 it was at that point, it was well in the thirties. 0:08:11.320 --> 0:08:14.160 We are seeing sums sell off on that and people 0:08:14.200 --> 0:08:16.600 buying more of you know, the AI trade. So I 0:08:16.600 --> 0:08:19.120 think there's a little bit of factor shifting there, not 0:08:19.240 --> 0:08:20.920 so much about one product or the other. 0:08:22.040 --> 0:08:25.240 To your clients, your investors in big tech companies do 0:08:25.320 --> 0:08:27.240 they like free cash flow and they upset if they 0:08:27.240 --> 0:08:28.240 don't get free cash flow. 0:08:29.600 --> 0:08:32.600 So two different things once that are looking at this 0:08:32.720 --> 0:08:36.319 massive capex going in, they're seeing what is the benefit 0:08:36.400 --> 0:08:39.200 of that for these companies. So if Microsoft was able 0:08:39.240 --> 0:08:42.520 to show you know, sequel chain improvement in as your 0:08:42.559 --> 0:08:45.760 sales growth, Amazon was able to show that. Google was 0:08:45.800 --> 0:08:47.800 able to show that, So I think they're getting a 0:08:47.840 --> 0:08:50.640 little more comfortable that these companies know what they're doing 0:08:50.640 --> 0:08:53.200 when they're spending you know, hundreds of billions of dollars 0:08:53.200 --> 0:08:56.120 at that time. The second group is somebody who doesn't 0:08:56.160 --> 0:08:57.600 want to be at part of this trade and say, 0:08:57.640 --> 0:09:00.680 you know what, I like Apple, I have plus billion 0:09:00.720 --> 0:09:03.040 dollars in free cash flow. Over there, they're buying back 0:09:03.080 --> 0:09:06.240 that stock. iPhone's doing well, it's gaining share in China. 0:09:06.520 --> 0:09:08.160 So there are I mean, you could say there are 0:09:08.160 --> 0:09:10.480 a couple of buckets of people who are looking at 0:09:10.559 --> 0:09:12.280 this trade from different lenses. 0:09:13.040 --> 0:09:16.040 What about in the hardware sector. Apparently there's a big 0:09:16.320 --> 0:09:19.120 smart watch lineup that's that's getting ready to be released. 0:09:19.160 --> 0:09:21.959 Obviously there's the folding phone everyone has been waiting for. 0:09:22.000 --> 0:09:24.400 How is that Apple looking in the in the hardware sector. 0:09:25.480 --> 0:09:27.400 So when you look at the watch itself, it doesn't 0:09:27.400 --> 0:09:30.160 move the needle for Apple. It's an accessity that goes 0:09:30.400 --> 0:09:32.679 with the phone along with it. I mean, you're not 0:09:32.760 --> 0:09:35.960 going to just buy a small a watch without being 0:09:36.000 --> 0:09:39.080 in the Apple ecosystem. That's a very unlikely thing. But 0:09:39.160 --> 0:09:41.160 one of the things Mark Erman's talked about it when 0:09:41.200 --> 0:09:43.720 you look at some of the other variables you look 0:09:43.720 --> 0:09:47.040 at you know, the Aura ring, which is just a 0:09:47.080 --> 0:09:49.320 phenomenal product right now for a lot of people to 0:09:49.400 --> 0:09:52.760 track their sleep. You're looking at products that are coming 0:09:52.840 --> 0:09:56.720 out in the market without a screen. Garment just launched one. 0:09:56.840 --> 0:09:59.080 I mean I've ordered it, but it's on backlock for me. 0:09:59.720 --> 0:10:01.920 When you you look at a woop, these are all 0:10:01.960 --> 0:10:04.280 bands that you could use to track a lot of 0:10:04.360 --> 0:10:07.440 these you know, sleeping and you know, just your normal 0:10:07.559 --> 0:10:12.200 vitals without the need of a screen oriented product, and 0:10:12.240 --> 0:10:14.080 that's what I think you're going to see down the road. 0:10:14.120 --> 0:10:16.040 But that, to be honest with you, does not move 0:10:16.080 --> 0:10:19.679 the needle. The foldable does. Because Apple's been behind. They 0:10:19.679 --> 0:10:22.760 don't have a foldable phone right now, and iPhone accounts 0:10:22.800 --> 0:10:25.400 for over fifty percent of Apple sales. So if they 0:10:25.400 --> 0:10:27.960 are able to come out with a foldable device, I 0:10:27.960 --> 0:10:30.000 think it's going to create a lot of buzz next year, 0:10:30.360 --> 0:10:33.559 especially in emerging markets where if people are not worried 0:10:33.559 --> 0:10:35.800 about the price of it, which Margoman thinks is going 0:10:35.800 --> 0:10:38.280 to be around twenty five hundred dollars. I think that's 0:10:38.280 --> 0:10:41.400 going to be a very very cool factor that we'll 0:10:41.440 --> 0:10:42.720 see within the next one month. 0:10:43.320 --> 0:10:46.440 Stay with us. More from Bloomberg Intelligence coming up after this. 0:10:50.880 --> 0:10:54.600 You're listening to the Bloomberg Intelligence podcast. Catch us live 0:10:54.679 --> 0:10:57.720 weekdays at ten am Eastern on Apple, Cocklay and Android 0:10:57.760 --> 0:11:01.079 Auto with the Bloomberg Business app, and on demand wherever 0:11:01.120 --> 0:11:04.679 you get your podcasts, or watch us live on YouTube. 0:11:05.400 --> 0:11:07.320 It seems like that's a quiet day, but there's a 0:11:07.320 --> 0:11:09.880 lot going on out there in the equity capital markets. 0:11:10.280 --> 0:11:12.920 Intel we started this morning. They're going to do sell 0:11:12.960 --> 0:11:14.559 fifteen billion dollars in common. 0:11:14.320 --> 0:11:17.439 Stock to fuel some of their AI demand. Boom got 0:11:17.440 --> 0:11:20.319 some IPO filings, We got some stocks I thought were 0:11:20.360 --> 0:11:22.400 meme stocks. I'm not sure if they still are, but 0:11:22.520 --> 0:11:24.640 we had Billy Lipschultz and to kind of explain it 0:11:24.640 --> 0:11:26.320 all to us, Billy Lipschutz, Bloomberg. 0:11:25.960 --> 0:11:27.160 News senior equities reporter. 0:11:27.480 --> 0:11:32.160 First was game Stop's potential bid was fifty six billion 0:11:32.200 --> 0:11:32.880 dollars for eBay? 0:11:32.920 --> 0:11:34.800 Was that ever considered real legit? 0:11:35.280 --> 0:11:37.720 It was always kind of laughed at, really speaking what 0:11:37.760 --> 0:11:39.840 I was doing. It was. It was It was a 0:11:39.880 --> 0:11:42.000 market I don't want to matter too much, but it 0:11:42.040 --> 0:11:43.840 was basically seen by most on Wall Street is kind 0:11:43.840 --> 0:11:46.240 of a marketing campaign from Ryan Cohen, who is the 0:11:46.360 --> 0:11:48.480 now head of game Stop. He was a big driver 0:11:48.600 --> 0:11:53.360 between behind that twenty twenty one memestock Mania round game Stop, 0:11:53.640 --> 0:11:56.120 becoming the largest shareholder, one of the larger shareholders leading 0:11:56.120 --> 0:11:58.760 the company. He was a co founder of Chewy, made 0:11:58.800 --> 0:12:02.080 his name through that. So I was broadly seen as 0:12:02.240 --> 0:12:08.240 kind of a interesting thought, but resoundingly rejected by eBay 0:12:08.760 --> 0:12:10.960 back in May. He said he was going to come 0:12:10.960 --> 0:12:13.120 for him one way or another, and ultimately, according to 0:12:13.160 --> 0:12:16.120 our reporting, now considering pulling that bid. 0:12:16.440 --> 0:12:18.520 Why does game stop want eBay? I mean, the market 0:12:18.559 --> 0:12:21.280 seem quite disappointed this didn't happen or isn't going to 0:12:21.320 --> 0:12:22.199 happen potentially. 0:12:22.360 --> 0:12:25.200 Well, the big debate always was, you want to make 0:12:25.240 --> 0:12:27.679 a fifty six billion dollar takeover when you have a 0:12:27.760 --> 0:12:30.160 market value of eight billion dollars and you have cash 0:12:30.160 --> 0:12:32.319 and equivalents of eight billion dollars. So there's a huge 0:12:32.320 --> 0:12:35.280 gap you have to bridge at some point. Yeah, yeah, 0:12:35.600 --> 0:12:37.400 you know, if you work on Wall Street, there there 0:12:37.440 --> 0:12:40.640 are levers you can pull. But the reason I think 0:12:40.640 --> 0:12:44.320 we're seeing eBay shares down a little bit again is 0:12:44.480 --> 0:12:47.520 just given kind of that option, the call option potential 0:12:47.559 --> 0:12:51.160 of this being something that could work out. Cohen basically 0:12:51.240 --> 0:12:55.040 has really been vocal and bashing eBay management, talking up 0:12:55.040 --> 0:12:58.559 the potential synergies that they could see. Again eBay downplayed 0:12:58.600 --> 0:13:01.880 those banker or analysts were really like two billion dollars 0:13:01.880 --> 0:13:04.160 in propose, Energy still feels like a bridge too far 0:13:04.440 --> 0:13:07.320 on the potential merger. This is a company that Cohen 0:13:07.360 --> 0:13:10.880 has been either publicly leading or behind the scenes leading 0:13:10.880 --> 0:13:12.720 for quite some time, and the big question has been 0:13:13.040 --> 0:13:15.160 what does it actually look like? What do you look 0:13:15.240 --> 0:13:17.720 like if you're a game retailer in an era where 0:13:17.760 --> 0:13:18.760 people download games. 0:13:19.280 --> 0:13:19.600 All right? 0:13:19.679 --> 0:13:25.640 Data center company Switch good name filed confidentially for a USIPO. 0:13:25.679 --> 0:13:27.160 What do we know about Switch? 0:13:27.600 --> 0:13:30.600 Data center rates are hot? Anything around data center's hot. 0:13:31.120 --> 0:13:35.199 We had reported back in July early July the company 0:13:35.960 --> 0:13:39.120 was kicking off a private funding round led by Anderson 0:13:39.120 --> 0:13:42.439 Horowitz that would raise two billion dollars equity value or 0:13:42.600 --> 0:13:46.360 enterprise value excuse me, approaching fifty billion dollars. So our 0:13:46.360 --> 0:13:49.920 reporting that they filed confidentially on Friday working with BAA City, 0:13:50.000 --> 0:13:53.200 Goldman JP, and Morgan Stanley the who's who, and that 0:13:53.200 --> 0:13:56.440 that funding round was either complete or near complete, and 0:13:56.440 --> 0:13:59.560 that Ben Horowitz, co founder of Anderson Horowitz, would be 0:13:59.640 --> 0:14:01.560 joining the board. So now the big question is, as 0:14:01.600 --> 0:14:05.280 we reported targeting in November IPO, how quickly does that 0:14:05.320 --> 0:14:07.679 come together? Will the market's still be there? And if 0:14:07.679 --> 0:14:10.320 you're doing a two billion dollar private raise, IPO is 0:14:10.320 --> 0:14:12.640 probably going to be much larger, all right? 0:14:12.679 --> 0:14:15.680 Well, apparently a Form Labs, which makes three D printers, 0:14:15.800 --> 0:14:18.720 is also in early talks with potential advisors for an IPO. 0:14:19.920 --> 0:14:22.680 Talk about that business. The three D printer business is 0:14:22.720 --> 0:14:25.720 that A is that like a big is that the 0:14:25.760 --> 0:14:26.320 next big thing? 0:14:26.520 --> 0:14:28.560 Three D printing was all the rage, and I want 0:14:28.560 --> 0:14:30.600 to say in twenty and twenty one, everyone. 0:14:30.360 --> 0:14:33.040 My public old son was doing probably still is doing, 0:14:34.000 --> 0:14:34.520 and that was. 0:14:34.640 --> 0:14:36.480 That was the big push. You just look at three 0:14:36.560 --> 0:14:40.160 D Systems trades under the ticker GDD. It hit its 0:14:40.200 --> 0:14:42.080 peak at fifty five bucks if you have trades for 0:14:42.440 --> 0:14:44.880 less than four right now. So the time had been 0:14:45.000 --> 0:14:47.560 much hotter in twenty and twenty one. But form Labs 0:14:47.600 --> 0:14:50.400 backed by soft Bank did have bankers come in for 0:14:50.760 --> 0:14:53.480 a bake off. We have at least one person saying 0:14:53.480 --> 0:14:56.200 they should target a raise of about five hundred million dollars. 0:14:56.360 --> 0:14:59.160 The big question comes back to they are profitable and 0:14:59.200 --> 0:15:01.800 they are soft bank company, is so what problems are 0:15:01.840 --> 0:15:02.360 you solving for? 0:15:02.400 --> 0:15:03.360 Why are you going public? 0:15:03.520 --> 0:15:06.240 SoftBank has a number of needs and if you're a 0:15:06.360 --> 0:15:09.040 three D printer company, could be interesting to just see 0:15:09.040 --> 0:15:10.840 if you want to scale. They did announce that they 0:15:10.840 --> 0:15:13.480 had annual revenue north of two hundred and fifty million dollars. 0:15:14.120 --> 0:15:16.920 Tom from the Upper East Side writes in and asks 0:15:16.960 --> 0:15:20.520 for a space X quote, one hundred and thirty three 0:15:20.560 --> 0:15:22.840 bucks are getting close back to that IPO price a 0:15:22.880 --> 0:15:25.520 one thirty five. What does that mean for kind of 0:15:25.560 --> 0:15:27.400 the IPO market in general? 0:15:27.840 --> 0:15:32.920 The broader sentiment has become mixed, partly because SpaceX traded blow, 0:15:33.000 --> 0:15:36.800 partly because ske Highnix, the largest non US company listing 0:15:36.840 --> 0:15:40.880 here with their record fundraising, trays a lot like an EKG. 0:15:41.000 --> 0:15:43.520 The big question now is we are expecting Anthropic to 0:15:43.520 --> 0:15:47.120 go public September October timeframe. How can the market digest 0:15:47.160 --> 0:15:50.880 and write down another you know, large ipo open AI 0:15:51.080 --> 0:15:53.440 kind of waiting in the wings potentially early next year. 0:15:53.680 --> 0:15:57.000 We're an IPO market that still is hot but very 0:15:57.040 --> 0:15:59.320 much can be touch and go, and SpaceX kind of 0:15:59.360 --> 0:16:01.880 is emblematic of that. Again one point thirty three now 0:16:01.960 --> 0:16:04.320 just south of one thirty five, but popped up like 0:16:04.360 --> 0:16:04.960 fifty percent. 0:16:05.040 --> 0:16:06.320 Do we have any sense of that? 0:16:06.400 --> 0:16:10.880 Insider shares that were eligible to be sold last week? 0:16:10.880 --> 0:16:13.680 Do we know what happened with those? Did anybody actually 0:16:13.680 --> 0:16:14.280 sell their shares? 0:16:14.360 --> 0:16:14.920 Or do we know? 0:16:15.040 --> 0:16:18.240 Well, we won't know because normally you would know if 0:16:18.280 --> 0:16:20.360 a if an investor owns more than five percent, they 0:16:20.400 --> 0:16:23.680 have to file elon Musk is the main one, and 0:16:23.720 --> 0:16:27.320 then valor who's taken on their own Share Sale Project 0:16:27.360 --> 0:16:29.120 and then Google are the only three according to our 0:16:29.160 --> 0:16:31.200 data who would have to file for that. So a 0:16:31.240 --> 0:16:33.320 lot of this could be happening behind the scenes. But 0:16:33.680 --> 0:16:36.000 when you see a stock rally like it has after 0:16:36.320 --> 0:16:39.680 the lock up expired, it's broadly seen as either a 0:16:39.800 --> 0:16:42.720 short covering investors were hoping for more of a kind 0:16:42.760 --> 0:16:45.720 of dash to the exits, or be just simply insiders 0:16:45.720 --> 0:16:46.560 not rushing to sell. 0:16:47.280 --> 0:16:50.360 Stay with us more from Bloomberg Intelligence coming up after this. 0:16:54.440 --> 0:16:58.120 You're listening to the Bloomberg Intelligence podcast. Catch us Live 0:16:58.200 --> 0:17:01.600 weekdays at ten am Eastern Apple Coarclay and Android Auto 0:17:01.680 --> 0:17:04.760 with the Bloomberg Business app. Listen on demand wherever you 0:17:04.800 --> 0:17:09.080 get your podcasts, or watch us live on YouTube. 0:17:09.040 --> 0:17:09.760 Or Sure Hathaway. 0:17:09.880 --> 0:17:13.159 They had their investor kind of meeting. Yes story, they 0:17:13.160 --> 0:17:16.000 reported some earnings over the weekend. They tend to do 0:17:16.080 --> 0:17:18.680 for some reason. Matthew Palasoll it's his job to figure 0:17:18.720 --> 0:17:20.680 all this stuff out for Sea's Insurance, sent once for 0:17:20.680 --> 0:17:24.000 Bloomberg Intelligence. So the headline Matt I'm seeing on the 0:17:24.000 --> 0:17:28.919 Bloomberg terminal is new CEO Greg Abel, You're spending some 0:17:28.920 --> 0:17:32.520 money here. So what he's doing and how that may 0:17:32.520 --> 0:17:34.640 be a little bit different from mister Buffett. 0:17:34.359 --> 0:17:36.840 So yeah, he's opening up the checkbook a little bit. 0:17:37.200 --> 0:17:41.440 Berkshire still has incredible amounts of cash that is still undeployed, 0:17:41.560 --> 0:17:45.080 but we expected them to buy back some shares in 0:17:45.119 --> 0:17:48.440 the quarter. There was some disclosures made by Buffett around 0:17:48.520 --> 0:17:52.159 his ownership that gave us a clue. We thought it 0:17:52.200 --> 0:17:55.520 would be more, but essentially what happened is some of 0:17:55.560 --> 0:17:58.000 that was pushed through to the third quarter, so it 0:17:58.040 --> 0:18:00.439 was about four and a half billion of buybacks. We 0:18:00.480 --> 0:18:02.080 thought it was a wide range, but we thought it 0:18:02.080 --> 0:18:04.880 could be anywhere from five to twelve or thinking maybe 0:18:04.880 --> 0:18:07.200 it was like eight. Turns out, they did four and 0:18:07.240 --> 0:18:09.639 a half in the quarter and then at least another 0:18:09.680 --> 0:18:12.040 three in July, so kind of close to what we thought, 0:18:12.040 --> 0:18:15.119 but it's just more spread out through the quarters. Couple 0:18:15.200 --> 0:18:18.919 with that, Bertie was a net buyer of stocks for 0:18:18.960 --> 0:18:22.240 the first time in several years. They might have been 0:18:22.480 --> 0:18:24.560 a net buyer of stocks in the first quarter as well, 0:18:24.600 --> 0:18:27.040 but what they had done was they unwound a bunch 0:18:27.040 --> 0:18:30.359 of positions by one of the former managers investment managers 0:18:30.359 --> 0:18:32.439 who had left, so they sold a lot of his 0:18:32.560 --> 0:18:35.320 positions and they bought some, but it ended that they 0:18:35.320 --> 0:18:38.200 sold more than they bought. But in the second quarter 0:18:38.800 --> 0:18:41.760 they bought more than they sold. And there's about twelve 0:18:41.840 --> 0:18:45.160 billion dollars worth of stock or stocks that they bought 0:18:45.440 --> 0:18:47.399 that we don't know what it is yet. They'll be 0:18:47.400 --> 0:18:50.720 a thirteen f next week that will perhaps see Sometimes 0:18:50.720 --> 0:18:55.120 they hold things confidential, but if not, we'll get some 0:18:55.160 --> 0:18:58.200 more color on what if it was new positions or 0:18:58.720 --> 0:18:59.920 added to existing ones. 0:19:00.200 --> 0:19:02.639 I mean, they have such a legendary reputation for knowing 0:19:03.080 --> 0:19:07.160 where things are headed, especially knowing positions that other people 0:19:07.240 --> 0:19:09.960 don't necessarily take. Do we have any idea of what 0:19:10.000 --> 0:19:11.960 they're buying or what they're bullish on? 0:19:12.160 --> 0:19:14.119 So I could say this. In the first quarter they 0:19:14.160 --> 0:19:17.959 started a new position in Delta. Really so yes, and 0:19:18.119 --> 0:19:20.199 Buffett has had a history with the airlines, and the 0:19:20.200 --> 0:19:24.720 first quarter they did Delta. Their airline related businesses that 0:19:24.800 --> 0:19:27.240 they own have been showing some acceleration. 0:19:28.640 --> 0:19:29.480 So I don't know. 0:19:29.520 --> 0:19:31.360 I can't say if I agree or disagree with them 0:19:31.440 --> 0:19:34.240 doing that, but you know, perhaps that's something to think about. 0:19:35.119 --> 0:19:37.479 They also made an acquisition. We didn't talk about an 0:19:37.520 --> 0:19:40.239