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Speaker 2: This is Bloomberg business Week Inside from the reporters and
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Speaker 2: Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio.
Speaker 3: All right, we're going to stay with the equity universe, Tim,
Speaker 3: and one stock in particular that's down about two point
Speaker 3: two percent as we speak.
Speaker 4: Yeah, that, of course has shares with the Walt Disney
Speaker 4: Company down two point two percent thanks to a showdown
Speaker 4: between the company and it's CEO Bob Iger and activist
Speaker 4: investor Nelson Peltz and his try on fund management. The
Speaker 4: showdown came down to shareholders declaring the winner. That winner
Speaker 4: Disney and CEO Bob Iiger.
Speaker 3: Yeah, and they had the backing of big institutional investors
Speaker 3: that hold a big junk of Disney shares. We're talking
Speaker 3: about Vanguard and black Rock excuse me, who owned about
Speaker 3: fifteen percent of Disney shares. All right, with more on
Speaker 3: that out and what we need to know about Disney,
Speaker 3: what it really kind of needs to do to get
Speaker 3: back on track back with us as Bloomberg Intelligence technology
Speaker 3: media analyst Getha Ranganathan from RBI headquarters in Princeton, New Jersey.
Speaker 3: All Right, Githa, she's been busy today votes over. What's
Speaker 3: the impact of the vote and the outcome on what
Speaker 3: Disney does next, or maybe what you think it should
Speaker 3: do next.
Speaker 5: I think this is definitely I think a personal win
Speaker 5: for Bob Eiger, who has spent so much time over
Speaker 5: the past few months kind of canvassing for support, I mean,
Speaker 5: rallying all the investors. Remember, Disney has a huge, huge
Speaker 5: retail investor base. Almost forty percent of its shareholders are
Speaker 5: retail investors, and he has spent a lot of resources,
Speaker 5: more than forty million dollars kind of trying to get
Speaker 5: their support. So I think this is just, you know,
Speaker 5: a job well done for him, in a huge sigh
Speaker 5: of relief. But in terms of what the company is doing,
Speaker 5: I don't really necessarily think that this shareholder vote outcome
Speaker 5: has any impact at all on near term trends. Bob
Speaker 5: Iger has already kind of taken control of the narrative.
Speaker 5: He's gotten a lot of things moving in terms of
Speaker 5: you know, content cost cuts, cost cuts actually across the board,
Speaker 5: there's just rationalization of output. There's investments in new growth
Speaker 5: areas including you know, gaming. We saw that one point
Speaker 5: five billion investment in Epic Games. So he is doing
Speaker 5: everything to write the ship. There's obviously a new digital
Speaker 5: strategy for ESPN in place. So I think we're just
Speaker 5: going to continue to see, you know, management do more
Speaker 5: of the same. I think the one thing that's going
Speaker 5: to be a little bit different, Carol, is there's going
Speaker 5: to be intense scrutiny on this board to really come
Speaker 5: up with a good succession plan. I think that is
Speaker 5: one thing that you know, most of these activist investors
Speaker 5: kind of kept founding the table and kept saying, you know,
Speaker 5: you guys really botched succession and please don't bungle it
Speaker 5: this time around.
Speaker 2: So was it?
Speaker 3: Wait, I'm sorry, well, so was it? Do they not
Speaker 3: like that Bob Byger came back? Is that the problem
Speaker 3: that they say that when Bob Ayger left the first time,
Speaker 3: that that was the succession planning that didn't it was
Speaker 3: his place or what?
Speaker 5: Yeah, it was not so much Bob Iger coming back,
Speaker 5: but him kind of suggesting Bob Chapek and maybe the
Speaker 5: board didn't push back enough. Got it right? Because he didn't. Yes,
Speaker 5: he was a parks executive, but did he have all
Speaker 5: the experience needed for running kind of the content engine.
Speaker 5: Clearly he didn't, and that's where a lot of the
Speaker 5: missteps kind of surface, right, And so you know, there's
Speaker 5: been this constant complaint about, you know, did the board
Speaker 5: really do their job or were they just so enthralled
Speaker 5: and so enamored by Iiger that they just took his
Speaker 5: word at face value.
Speaker 4: Yeah, that's what we heard yesterday from Comptroller Brad Lander
Speaker 4: in his comments to Scarlett during that interview late yesterday
Speaker 4: about this ahead of the vote. So, what about some
Speaker 4: names here, keitha that could be floated if we're talking
Speaker 4: succession at Disney now that this proxy battle is behind
Speaker 4: Bob Iger, what are some names we should keep an
Speaker 4: eye on who's being floated around so Disney, Jim.
Speaker 5: It's typically been an internal candidate. I mean, if you
Speaker 5: go back many, many years, I mean, you know, up
Speaker 5: until nineteen eighty four, it's always kind of been an
Speaker 5: internal candidate, and so I think that's what's going to
Speaker 5: happen this time around as well. Obviously, the four big
Speaker 5: division chiefs are in play here. We're talking about Dana Walden,
Speaker 5: who hads TV. We're talking about Josh Tomorrow who has Parks.
Speaker 5: There's Jimmy Pittarro for ESPN, and then there's Alan Bergman
Speaker 5: from the film and the studio segment. The problem with
Speaker 5: Disney is it's just such a diverse conglomerate, right, It's
Speaker 5: this behemoth, and you know, Josh Tomorrow having vast experience
Speaker 5: in Parks isn't really going to help because he has
Speaker 5: absolutely zero experience in running a TV network, or in
Speaker 5: running a streaming service or even like, you know, coming
Speaker 5: up with green lighting a film. So that really is
Speaker 5: a problem. And you know that has kind of always
Speaker 5: been the persistent problem with Disney because you have these
Speaker 5: executives who are so good in one specific area, but
Speaker 5: who have absolutely no exposure on the other, and so
Speaker 5: it's going to be a really challenging you know, obviously,
Speaker 5: Bob IGO's shoe was a very big to fill. So
Speaker 5: the idea is that they're probably going to have somebody
Speaker 5: come in as a COO kind of get that experience
Speaker 5: in all the different segments.
Speaker 3: Got it.
Speaker 4: We're going all in on Disney during the first part
Speaker 4: of this hour today. From how the company prevailed to
Speaker 4: what it means now that it's triumphed over Pelts. First,
Speaker 4: Keida Disney's win was the backing of the company's two
Speaker 4: largest shareholders, none other than Vanguard Group in Blackrock. Together
Speaker 4: they control about fifteen percent of Disney's stock. Crystal c
Speaker 4: is Bloomberg News Deals reporter. She wrote about how each
Speaker 4: side campaigned ahead of the vote and the importance of
Speaker 4: the institutional backers. She's here in the Bloomberg Interactive Brokers studio.
Speaker 4: So we talked about I mentioned Vanguard and Blackrock, but
Speaker 4: talk about how they came out and support aiger ahead
Speaker 4: of this.
Speaker 6: Yeah, so we reported that Vanguard, the largest institutional shareholder
Speaker 6: with almost eight percent share, was supporting the company the
Speaker 6: management yesterday. So it's actually pretty unusual for an institutional
Speaker 6: sharewoad of to nottsard management. So that was interesting. But
Speaker 6: actually what's missing here is that the biggest voting block here,
Speaker 6: it's actually retail investors over thirty percent. Actually almost forty
Speaker 6: percent of Disney stocks are owned by retail. And you know,
Speaker 6: a lot of kids when they were born, they get
Speaker 6: a share at Disney as a present, and a lot
Speaker 6: of these are Disney fans and they tend to side
Speaker 6: with management. Actually, in any given proxy fight, over eighty so.
Speaker 3: The retail also sides with management.
Speaker 6: So any given proxy fight, eighty percent of retail investors
Speaker 6: that vote would side with management.
Speaker 4: That's just typical.
Speaker 6: It is a typical scenario. Not all of them vote.
Speaker 6: It is incredibly hard to get retail investors to actually
Speaker 6: cast their vote because a lot of them are not
Speaker 6: used to this proxy process. But this actually had happened
Speaker 6: this time as well, Like we've seen the show up
Speaker 6: from retail and those are also siding with management. And
Speaker 6: that's why we see today's result that Eiger and all
Speaker 6: Disney nominees have been re elected into have been elected
Speaker 6: into the board.
Speaker 3: It just feels like, you know, Tim, it was kind
Speaker 3: of a tortuous, long, costly fight for Disney. We know
Speaker 3: that they've been you know, going after this and then
Speaker 3: when all a said and done, you know they're still
Speaker 3: in place. But they obviously, as we heard from we
Speaker 3: talked with Githa bring an Othn of our Bloomberg intelligence team,
Speaker 3: that they've still got to make some changes, especially when
Speaker 3: it comes to succession.
Speaker 4: Yeah, I want to get to those changes in just
Speaker 4: a minute, but about it, But I still want to
Speaker 4: stick on the voting side of things. Even though even
Speaker 4: though this is, you know, Bloomberg reported this yesterday, I
Speaker 4: still think this is fascinating, Crystal, because there were also
Speaker 4: some companies and individuals who came out in a prominent individuals,
Speaker 4: prominent board members who came out in support of Nelson Pelts.
Speaker 3: It's like being picked for, you know, a volley volleyball
Speaker 3: game or dodgeball, right, who gets you gets your guests.
Speaker 6: Yeah, there's a lot of you know, we are endorsing
Speaker 6: Nelson versus we're signing with with Iiger. So there are institutional,
Speaker 6: fusional shareholders that voted with Pelts. Newburger Burman actually said
Speaker 6: in the statement that they would vote for Pelts, and
Speaker 6: they did. And again because so much of this is
Speaker 6: owned by retail shareholders, right, and there's actually no once
Speaker 6: in constitutional shareholders that had over ten percent share. So
Speaker 6: even if you get all the index, all the passive
Speaker 6: investors to vote for you, you're still you really still
Speaker 6: need to count on the retail investors. And that's what
Speaker 6: Disney is doing really well on this proxy fight, where
Speaker 6: they have gone all out in the social media campaign
Speaker 6: and you go on Spotify, you go on Instagram, You're
Speaker 6: getting all these ads of a friendly Disney's voice telling
Speaker 6: you to fight for the white proxy card, and that
Speaker 6: had actually successfully pulled someone out votes for them.
Speaker 3: Well, nothing like a media company don't knowing how to
Speaker 3: market itself, right, I mean I heard some.
Speaker 4: Of those ads yeah ahead a podcast, so I was like,
Speaker 4: why are we hearing these ads?
Speaker 2: That is weird?
Speaker 3: I mean, is it unusual for a company to be
Speaker 3: that aggressive. It's almost like, you know, before the oscars,
Speaker 3: right when the movies go out, like for Bob Iger exactly,
Speaker 3: But is it unusual to kind of reach out in
Speaker 3: that way?
Speaker 6: It is unusual because this is actually the most expensive
Speaker 6: proxy fight that we we've seen. The data is showing
Speaker 6: that Disney actually had said they spent over they budgeted
Speaker 6: forty million dollars. Yeah, this proxy tip and that goes
Speaker 6: to things like social media, post that goes to mailing,
Speaker 6: traditional mailing to their shareholder list, and those things are expensive.
Speaker 6: And now that they've won, that is finally going to
Speaker 6: be set aside, you know, and you can focus on
Speaker 6: running the company again. But it's time consuming and very costly.
Speaker 4: Okay, So speaking of that, I want to bring in
Speaker 4: a Jamie Lumley, senior analyst at Third Bridge Group, joining
Speaker 4: us from New York City. So, igers won the battle, Jamie,
Speaker 4: Now he's got to fight the wars. We just heard
Speaker 4: from Crystal. The pressure is still on. What is at
Speaker 4: the top of the agenda for him to do now
Speaker 4: that he's won the proxy vote.
Speaker 1: Well, the pressure is definitely still on. And it's hard
Speaker 1: to think of just one thing the top the agenda
Speaker 1: because it's so long. But if you had to pinpoint,
Speaker 1: one thing that I think investors will really be looking
Speaker 1: at is streaming profitability. The company's planning on finally driving
Speaker 1: profits in fiscally year twenty twenty four. This is coming
Speaker 1: after so many quarters and years of billions and losses
Speaker 1: in this segment, and we've heard Bob Ayer talk about
Speaker 1: how important the streaming transition is for the business. Really
Speaker 1: making sure that they're hitting their mark and achieving their goals.
Speaker 1: That's definitely priority number one as they move beyond this
Speaker 1: proxy fight.
Speaker 3: Yeah, it is interesting. I mean, Tommy, we're talking kind
Speaker 3: of in the newsroom. It's like they won the battle,
Speaker 3: but have they won the war?
Speaker 2: Right?
Speaker 3: They still have to make some changes. I mean, at
Speaker 3: the core of what Disney is. It's a lot of
Speaker 3: moving parts, and some are much more significant. I find
Speaker 3: it wild to see that we are looking at a
Speaker 3: Disney today that when you talk about what really moves
Speaker 3: the profit needle, it's really parks. At this point, parks
Speaker 3: are definitely huge.
Speaker 1: And if we think back to one of the big
Speaker 1: news stories at the end of twenty three was the
Speaker 1: fact that Disney is doubling its capital expenditures and it's
Speaker 1: parts and experiences business over the next decade, and sixty
Speaker 1: billion dollars is substantial, and it really shows the realization
Speaker 1: at Disney that while of course it is a priority
Speaker 1: to build out streaming to make sure that they have
Speaker 1: a transition away from the linear assets which have historically
Speaker 1: been a big profit driver. Parks have been consistent coming
Speaker 1: out of the pandemic. Domestically, it's been a strong profit driver.
Speaker 1: International has served seeing the year on year improvement in
Speaker 1: those markets. It's definitely a top priority. And one big
Speaker 1: question also that investors have is where this new capital
Speaker 1: investment is going to go. Because today, and you could
Speaker 1: hear this on the shareholder meeting today, Disney is not
Speaker 1: really given. They haven't shown their hand as to where
Speaker 1: these dollars are going to go. There are some large projects,
Speaker 1: but there's still some uncertainty as to how exactly they
Speaker 1: want to strengthen this business for the future.
Speaker 6: Jamie, what do you think this means for the succession
Speaker 6: planning at Disney, because that had come up over and
Speaker 6: over again, and not only just from Nelson Pelts, but
Speaker 6: also the other active as black Whells.
Speaker 5: Well.
Speaker 1: Certainly, if Pelts had been able to get on the
Speaker 1: board here, it would have been really interesting to see
Speaker 1: what that would do to succession planning, as it could
Speaker 1: have definitely elevated the chances of anybody who was not
Speaker 1: currently at Disney. As one of the major points Pelts
Speaker 1: has reiterated over and over again is the advantages of
Speaker 1: having an outside, fresh perspective both with Disney getting their
Speaker 1: board together have solidifying control. Here, it really turns to
Speaker 1: looking at those leading internal candidates, and there's been so
Speaker 1: much speculation about who this might be, whether or not
Speaker 1: you want to prioritize someone in the entertainment division, which
Speaker 1: needs a lot of work, or the parks business, which is,
Speaker 1: as we've highlighted, an incredible big profit driver, or sports,
Speaker 1: which is you know, another huge dynamic area with Disney,
Speaker 1: with the joint venture coming up, ESPM being lost in
Speaker 1: the flagship. There are arguments for leaders of all these
Speaker 1: divisions taking the reins, but the big question, of course
Speaker 1: is who is best suited to manage all of these altogether.
Speaker 3: Well, let me ask you that, Jamie, I mean, who
Speaker 3: is the best suited? I mean, I remember that you
Speaker 3: know what they did, right, It's always been kind of
Speaker 3: internal candidates. I remember when Jay Rozzulo was CFO and
Speaker 3: Tom Staggs was head of parks and they, you know,
Speaker 3: would switch positions so that they could learn more about
Speaker 3: the company and with the understanding that one of these
Speaker 3: guys might be the air apparent at some point. It
Speaker 3: didn't play out that way. But do you believe that
Speaker 3: it needs to be somebody internally or does it need
Speaker 3: to be somebody maybe from outside with a different look,
Speaker 3: for a different view maybe on the company.
Speaker 1: So at Thurdbridge, what we've been hearing from the experts
Speaker 1: we speak with is really just the strength and importance
Speaker 1: of Businesy's culture and determining who this is going to
Speaker 1: be and how more likely than not they're really going
Speaker 1: to lean on some of that internal muscle that they have,
Speaker 1: And if we look at some of these leaders, there's
Speaker 1: Dana Walden and Alan Bergman over leading the entertainment division.
Speaker 1: Both could potentially be a good fit to really regalvanize
Speaker 1: that business. Josh Tomorrow over experiences to really lead that.
Speaker 1: There are definitely some individuals with impressive track records who
Speaker 1: could come in here internally and lead this company. But
Speaker 1: of course it's really hard to know exactly how the
Speaker 1: board is going about this. They've been fairly hush hush
Speaker 1: about who exactly is even officially in the running here.
Speaker 1: But there are definitely some people to tap internally who
Speaker 1: could be a very strong leader, But you don't think.
Speaker 3: It should be somebody externally.
Speaker 1: Then it seems based off of what we're hearing, it
Speaker 1: is fairly unlikely Disney will turn externally. But then again,
Speaker 1: we'll have to see what the board wants to do here.
Speaker 4: Hey, Jamie, tell us take us into the economics of
Speaker 4: streaming here, Like, why is it so hard to make
Speaker 4: Disney plus profitable? I mean Netflix, Look, it took a
Speaker 4: long time, It's been many years, but Netflix is profitable.
Speaker 1: They know how to do it, and Netflix is profitable.
Speaker 1: And one thing which is amazing is that they've been
Speaker 1: turning an operating profit ever since they launched streaming in
Speaker 1: two thousand and seven, which is definitely amazing and one
Speaker 1: thing that all the streaming players, Disney included, is jealous of.
Speaker 1: And there are a couple of reasons here why it's
Speaker 1: been such a big loss leader. First of just customer acquisition.
Speaker 1: There's been such a race to have growth at all costs,
Speaker 1: to try to catch up to Netflix's scale, which at
Speaker 1: this point is looking increasingly difficult with them at two
Speaker 1: hundred and forty million Disney around one fifty one sixty
Speaker 1: for their core Disney plus offering. With that growth comes
Speaker 1: a lot of marketing so many dollars and to try
Speaker 1: to get people to come and stay. And then also
Speaker 1: the content costs. We've heard so much about how content
Speaker 1: is king and how there's been this golden age of
Speaker 1: streaming and the programming spend that it is accompanying that.
Speaker 1: That is one thing which also right now is coming
Speaker 1: to a bit of a shift over the last year
Speaker 1: or two with profitability at the forefront, with the strike,
Speaker 1: some delays and content spend. That's one area which is
Speaker 1: getting a bit of an adjustment as Disney and other
Speaker 1: players try to balance the books and not make sure
Speaker 1: that all their spend is rationalized, so between content, between marketing,
Speaker 1: between Also it does building the infrastructure for ad supported tears,
Speaker 1: making sure the technical platform is there. There are a
Speaker 1: number of major costs to make this a large, scaled
Speaker 1: and viable business.
Speaker 3: So, Jamie, I don't know if you cover Apple by
Speaker 3: any chance, but we just have a story about our
Speaker 3: own marker, I mean, just crossing the Bloomberg. Apple has
Speaker 3: teams investigating a push into personal robotics, a field with
Speaker 3: the potential to become one of the companies ever shifting
Speaker 3: next big things. This is according to people tim familiar
Speaker 3: with the situation, follows just shortly after they said we're
Speaker 3: done with the car.
Speaker 4: Yeah, Engineers at Apple have been exploring a mobile robot
Speaker 4: that can follow users around their homes, said the people,
Speaker 4: who asked not to be identified because the Skunkworks project
Speaker 4: is private. The iPhone maker has also developed in advanced
Speaker 4: tabletop home device that uses robotics to move a display around,
Speaker 4: they said.
Speaker 3: Gap efforts said to be in beginning stages, and it's
Speaker 3: unclear if the products will ultimately be released. Shares of
Speaker 3: Apple not really necessarily moving, although they look they're moving
Speaker 3: a little bit lower on this news, down about half
Speaker 3: a percent. Before we go back to Disney, Jamie, any
Speaker 3: thoughts do you follow Apple?
Speaker 1: I cover their media team. So we've got an a
Speaker 1: question about ted Lasso.
Speaker 4: On Yes, that's great, right, well played, Jamie, well done.
Speaker 3: Well done. All right, So I don't know, what is
Speaker 3: there a timeline that we have to give Disney at
Speaker 3: this point?
Speaker 1: Well, the thing which we really have to hold Disney
Speaker 1: too is definitely the streaming profitability goals. I mean seeing
Speaker 1: if they can achieve that. One of the big questions is,
Speaker 1: you know about Bob Iger's return to this company, making
Speaker 1: sure he's executed on that while also seeing the CEO
Speaker 1: transition succession happen. That's key, And then also more color
Speaker 1: about the long term operating margins for streaming. They want
Speaker 1: double digits. It took Netflix a decade to get double
Speaker 1: digit operating margins consistently. So those are definitely some things
Speaker 1: to look at, and really that year timeline is going
Speaker 1: to be key for the company.
Speaker 6: And what about the parks. They have said that they're
Speaker 6: going to spend sixty billion and revamping the park in
Speaker 6: universal studio. It's said that they are going to have
Speaker 6: some new attractions. They have a new location in Florida
Speaker 6: where it's Disney's home turf. What do you think about
Speaker 6: the sixty billion, how do you think that should be spent?
Speaker 1: So what we've been hearing from our experts is that
Speaker 1: really the priority for Disney is much more on these
Speaker 1: huge immersive experiences than one off rides, think the traditional
Speaker 1: space mountain kind of feature. They're really trying to build
Speaker 1: these new lands which have people just spend so much
Speaker 1: time in the park and drive these really engaging experiences
Speaker 1: and then also justify the increasingly expensive day passes that
Speaker 1: Disney commands at its various parks. So in terms of
Speaker 1: where this will go, Disney's announced a variety of different features,
Speaker 1: if you listen to the call today, expanding different uh
Speaker 1: you know, massive experiences in Paris and Tokyo and their
Speaker 1: international stage. So looking at some of these large scale
Speaker 1: projects is what we're going to be keeping, you know,
Speaker 1: and you're out for for Disney to really get some clarity.
Speaker 1: As for them, of course, the constant story is how
Speaker 1: do we monetize their under year history of its and
Speaker 1: their new stories and these immersive experiences are definitely one
Speaker 1: of the areas they may look towards.
Speaker 4: Hey Carroll, you know one character you will not see
Speaker 4: at Disney at the Disney Theme parks, Blue, despite the
Speaker 4: fact that Blue is streamed on Disney Plus throughout the
Speaker 4: world except for China, New Zealand and Australia not yet.
Speaker 3: Tim Stenefek, Well, they.
Speaker 4: Don't have the rights to it. They didn't, They didn't
Speaker 4: buy up the rights.
Speaker 3: So maybe just negotiations, or maybe they.
Speaker 4: Miss the last Devin Leonard in a few minutes.
Speaker 3: All I know is I've been to the park. It's
Speaker 3: a long time. My daughter was younger. I got to say,
Speaker 3: I had a blast, and I kind of want to
Speaker 3: go back and go to the Frozen Park. I've never
Speaker 3: been there.
Speaker 4: You want to be one of the grown ups who
Speaker 4: goes with out kids today. Yeah, there are a lot
Speaker 4: of them. There are a lot of them out there.
Speaker 3: Oh, Jamie, thank you so much, a lot of fun.
Speaker 3: Really appreciate your insight. Jimmie Lumley, Senior analyst over at
Speaker 3: Third Bridge Group, joining us in New York City, and
Speaker 3: of course our thanks to our own Crystal Sea. She's
Speaker 3: a Bloomberg News deal reporter right here in our studio.
Speaker 3: This is Bloomberg.
Speaker 2: You're listening to the Bloomberg Business Week podcast. Catch us
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Speaker 3: Butts, get to macro backdrop today and also a market reaction.
Speaker 3: First to that macro backdrop, you've got the latest set
Speaker 3: of economic data doing little to alter bets. At the FED,
Speaker 3: we'll deliver ratecasts this year that included a report showing
Speaker 3: a slowdown in services, a drop also in prices to
Speaker 3: a four year love that was enough to halt a
Speaker 3: slide in equities. And then Timmy had Private Jobs, a
Speaker 3: reading that continue to underscore a solid labor market here
Speaker 3: in the US.
Speaker 4: And then in the middle of the day, at least
Speaker 4: Wall Street time, we had a FED Shair J. Powell
Speaker 4: speaking just about two hours ago at Stanford's Business Government
Speaker 4: in Society Forum. Check out what he had to say
Speaker 4: on inflation.
Speaker 7: It is too soon to say whether the recent readings
Speaker 7: represent more than just a bunk. We do not expect
Speaker 7: that it will be appropriate to lower our policy rate
Speaker 7: until we have greater confidence that inflation is moving sustainably
Speaker 7: down toward two percent.
Speaker 3: All right, greater confidence inflation moving sustainably down to two
Speaker 3: percent with more in J. Powell's comments the latest data,
Speaker 3: and not on him wearing a purple tie. Again, we're
Speaker 3: not going to talk about that, although that was in
Speaker 3: our Bloomberg Live blog. Let's get to Bloomberg News Economics
Speaker 3: editor Molly Smith. She's here in our New York studio.
Speaker 3: All right, J Powell, Molly any new messaging and ear
Speaker 3: did you guys not really? Okay?
Speaker 8: Well then I guess we were listening to the.
Speaker 4: Same I heard some new messaging about like career advice.
Speaker 8: Toward the end of that was new Okay, right, I
Speaker 8: mean you're looking for.
Speaker 3: That's not the band, but it's not the mad You
Speaker 3: don't hear that from Jay?
Speaker 8: Yeah, I mean situationally. Now he's talking at Stanford versus
Speaker 8: you know, at the FED meetings to a bunch of
Speaker 8: economic reporters who are probably staying in their career for
Speaker 8: a while.
Speaker 3: But it does feel like, in terms of FED speak
Speaker 3: that we are getting as of late, that maybe they're
Speaker 3: dialing back how much we might see in terms of
Speaker 3: FED cuts are we. I don't know, do we get
Speaker 3: any of that from jet From Jay Powell.
Speaker 8: I think he's still just trying to, you know, basically
Speaker 8: hold the market at bay here and not let people
Speaker 8: get too ahead of their skis on when the Fed
Speaker 8: is going to cut and how aggressively that's going to be.
Speaker 8: I think that's still have been pretty consistent with the
Speaker 8: comments we've gotten from him. You know, he's really just
Speaker 8: sticking to the language of cuts will be appropriate. Quote
Speaker 8: at some point this year, saw Bostic earlier today saying
Speaker 8: this year, yes, you know, Bostik's been a bit more
Speaker 8: specific calling for the fourth quarter. Other people more just
Speaker 8: right right, and others more just generally the second the.
Speaker 4: Okay, So how do you weigh that against what we
Speaker 4: heard from Powell? And how do you sort of take
Speaker 4: what we're hearing from some of these other FED speakers
Speaker 4: but also from j Powell.
Speaker 8: So that's the thing where it seems like there is
Speaker 8: a bit more divergence splitting in terms of how many
Speaker 8: cuts the policy makers think will be appropriate this year.
Speaker 8: Remember that the FED did uphold in the March Summary
Speaker 8: of Economic Projections three cuts for this year, but that
Speaker 8: was a close call, very easily could have been two.
Speaker 8: So there are people really on both ends of the
Speaker 8: spectrum we know now we now know sorry which dot
Speaker 8: bostis is that he's really just seeing one cut this year,
Speaker 8: where others are more split between.
Speaker 3: Two and three. The data that we keep getting, we
Speaker 3: got ADP employment today, Global Services, PMI, ISM services, anything
Speaker 3: interesting or just kind of supports this idea that hey, folks,
Speaker 3: as J. Powell has said, the US economy doing okay.
Speaker 8: Good, Yeah, both things on that. I mean, it does
Speaker 8: support that the economy is still doing well. But I
Speaker 8: think you know, a really good sign from the ISM
Speaker 8: services gauge to see the services prices easing. That has been,
Speaker 8: of course the stickiest source of inflation. We'll see how
Speaker 8: much that feeds through into the CPI and PCE measures
Speaker 8: of services inflation. But that would be a telling sign
Speaker 8: if that does come to be in the other indicators.
Speaker 3: All right, good stuff as always, and we do see
Speaker 3: yields backing off some of their highs, some of those
Speaker 3: earlier highs that we saw today. All right, Bloomberg News
Speaker 3: Economics editor Molly Smith, thank you so much. Appreciate that.
Speaker 2: You're listening to the Bloomberg Business Week podcast. Listen live
Speaker 2: each weekday starting at two pm Eastern on applecar Play
Speaker 2: and ANDROYD Auto with the Bloomberg Business Ad. You can
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Speaker 4: Well, if your parent kids of a certain age, then
Speaker 4: the TV show Blowy needs no introduction. Like Tim, You've
Speaker 4: probably seen it, you probably love it, and you're more
Speaker 4: than happy to pay Disney plus each month to keep
Speaker 4: those episodes streaming. As Devin Leonard writes for Bloomberg BusinessWeek,
Speaker 4: it's quote a show that's both hilarious and deeply moving,
Speaker 4: and its portrayal of how children come to terms with
Speaker 4: the world by playing games, and how parents can foster
Speaker 4: this by joining the fun, no matter how wacky it becomes.
Speaker 4: Devin Leonard is a Bloomberg BusinessWeek Senior Global Business Writer.
Speaker 4: His story the cover of the new issue of Bloomberg
Speaker 4: BusinessWeek magazine. It's available on newsstands, on the Bloomberg and
Speaker 4: at Bloomberg dot com Slash BusinessWeek. Devin, I can't tell
Speaker 4: you how to let it. I was to see that
Speaker 4: Blue got the cover treatment. He was off the show
Speaker 4: I heard this was happening, I was like, I cannot
Speaker 4: wait to do this, but but give us an idea
Speaker 4: of how this story came together.
Speaker 9: You know something Hermant, who's one of the editors, she
Speaker 9: asked me to do it while I was in the
Speaker 9: midst of some piece about Sean Diddy Combs and his demise,
Speaker 9: and you know, it's kind of like, you know, I
Speaker 9: was just like, yeah, sure, because I like to take assignments.
Speaker 9: I had never heard of this show. I'd never watched
Speaker 9: the show, and frankly, all I knew was that it
Speaker 9: was I thought it was a Disney show, which it
Speaker 9: isn't even a Disney show. It's it's just a show
Speaker 9: their license. But I started watching here for them, Yeah,
Speaker 9: well not sound likely for them, but but no, I
Speaker 9: just you know, I started watching it and really really
Speaker 9: got into it. And then I realized actually the people
Speaker 9: who were who were you know, were really sort of
Speaker 9: handling the licensing and the merchandising, well you know, it
Speaker 9: was actually BBC Studios, the commercial arm of the BBC.
Speaker 9: So I started talking to them, and you know, I
Speaker 9: was going to go to London, was I going to
Speaker 9: go to Brisbane Australia. Well, I wound up going to Brisbane, Australia,
Speaker 9: where I also met along with, you know, some of
Speaker 9: the top people from BBC Studios, Joe brom the show's creator,
Speaker 9: and also the founders of Luda Studio who produce it.
Speaker 9: So it's a whole you know, kind of kind of
Speaker 9: a you know, amazing thing culminating the trip you know,
Speaker 9: last month.
Speaker 3: So all right, because you know how popular it is,
Speaker 3: because you watch it a lot, and I think if
Speaker 3: my daughter was much younger, we would be watching it.
Speaker 9: I'm my kids to watch them. Hey, hey, hey, you
Speaker 9: gotta check this out.
Speaker 3: Well, the funny thing is it's not just appealing to kids,
Speaker 3: but talk to us about how popular it is.
Speaker 9: Well, I mean it's it's not. It's not just the
Speaker 9: most streamed kids show in the US last year, it's
Speaker 9: the second most stream show period after Suits and Suits
Speaker 9: is nine seasons of episodes that are about you know,
Speaker 9: almost like forty two minutes. So I mean that's the
Speaker 9: whole thing that you know, lots you had lots of
Speaker 9: streaming numbers for you know, if you have lots of episodes.
Speaker 9: Blue has one hundred and fifty episodes. They're only seven
Speaker 9: minutes long, and it's just just three seasons. And yet
Speaker 9: you know, you know, people are watching more Blue than
Speaker 9: you know, than Friends than gilmore Girls than you know
Speaker 9: and cis so so you know, you know, I mean,
Speaker 9: I mean, you know, there's there's something going on. You're
Speaker 9: you know, you know, something really crazy with you know,
Speaker 9: with the It's not just kids watching it, you know,
Speaker 9: it's it's a lot of other people too.
Speaker 4: You know what's interesting in your piece that I had
Speaker 4: no there was. I learned so much in the piece.
Speaker 4: I encourage everybody to read it, even if you've never
Speaker 4: heard of this show. What I found fascinating was this
Speaker 4: wasn't something that was set to be a hit from
Speaker 4: the pilot. I mean, this is not following the formula
Speaker 4: of the typical kids show by any means. This is
Speaker 4: not cookie cutter, right.
Speaker 9: Well, no, that's the crazy, that's the crazy thing. You
Speaker 9: have this guy, you know, Joe Brown, he's forty six
Speaker 9: years old. You know, he lives in Brisbane and you
Speaker 9: know that's where he went to high school. He spent
Speaker 9: some time in in London as an animator, you know,
Speaker 9: worked on some shows on the BBC. He came back
Speaker 9: to you know, Australia had a sort of a little
Speaker 9: animation company that he was running for a while out
Speaker 9: of his house and he kind of missed, you know,
Speaker 9: being around a big crew. So he was sort of like, well,
Speaker 9: if I'm going to have that again, I need to
Speaker 9: create a show my own show, becau. That's probably the
Speaker 9: only way it's going to happen. So it's like, well,
Speaker 9: what's that show going to be? And he liked Peppa Pig,
Speaker 9: but he was like, you know, I couldn't he could
Speaker 9: you know, you couldn't rip off Peppa Pig, you know,
Speaker 9: you know, and do you know that's like Peppa Pig's
Speaker 9: family or pigs and all the other families are other species.
Speaker 9: So he's like, okay, so I'll make a show about dogs,
Speaker 9: you know, my you know, you know, you know, my
Speaker 9: family will be Australian blue heelers and their families we
Speaker 9: Dosin's and Bassett Hounds and all stuff.
Speaker 4: So then so.
Speaker 9: Then he's he's he's home. He has two kids, who
Speaker 9: it turns out of the same age as as Blue
Speaker 9: and Bingo are about the same age as Blue and
Speaker 9: Binger are. Now they've actually got an older on the
Speaker 9: show Bluey's seven and Bingo's five. They started out of
Speaker 9: six and four. But but but so he was able
Speaker 9: to draw on his own experiences because he's home with them,
Speaker 9: you know, he's trying to work and he's running up
Speaker 9: and down the stairs, and and anybody watched the show,
Speaker 9: that's what's going on, you know, with Bandit. The show's
Speaker 9: father and banned It, by the way, is an archaeologist,
Speaker 9: you know, sort of a not a state home but
Speaker 9: almost a stay at home archaeologist, which is kind of interesting.
Speaker 9: But but but but in any case, he put together
Speaker 9: a pilot. The pilot, you know, you know, it had
Speaker 9: Bandit taken Bluey to the to the playground. Bandits playing
Speaker 9: you know, fruit and Ninch on his phone. He pushes
Speaker 9: Blue around the swing set. Blue goes on the swing set,
Speaker 9: clunks him. He shows it to these guy's at Luna
Speaker 9: Studio who he done some work for, and they liked it.
Speaker 9: And it was supposed to being the fun to start,
Speaker 9: he wanted to do a show is kind of both
Speaker 9: for growing ups and for kids. So that's sort of
Speaker 9: you know, with two levels of kind of humor. Even
Speaker 9: though but anyway, Gludos guys liked it. They tied to
Speaker 9: shop around and people said to them, Hey, is this
Speaker 9: family guy or is this Peppa Pig? And they were
Speaker 9: kind of like both and and you know, and you know,
Speaker 9: people just didn't get it, except for one guy, Michael Carrington,
Speaker 9: who was head of Childrens at the ABC in this case,
Speaker 9: the Australian Broadcasting Corporation. But but it's just, i mean,
Speaker 9: just just the genesis of the show is you know,
Speaker 9: it's so strange because because really it was just Joe Brum,
Speaker 9: you know, you know, missing being around a lot of
Speaker 9: other animators.
Speaker 3: First of all, I've always adored you and I love
Speaker 3: your reporting of respective but to hear you talk about
Speaker 3: Luian in such detail, it's just takes it to a
Speaker 3: whole other.
Speaker 4: Level difference from talking about Diddy. Yeah, I'm like trying
Speaker 4: to think, we'll wait the last time we talked with you,
Speaker 4: which is what makes you so wonderful, Devin Leonard.
Speaker 9: I know, but it's it's just such this material. It's
Speaker 9: just as rich. It's crazy.
Speaker 3: Well speaking of rich, right, it's made a lot of
Speaker 3: money for some people.
Speaker 9: Yeah, I mean, I mean it's it's well, it's well,
Speaker 9: it turns out the ABC basically you might you might
Speaker 9: say that they really sort of discovered the show, and
Speaker 9: Michael Carrington was able to get the ABC to put
Speaker 9: some money into a pilot. He said, he said, I
Speaker 9: would have greenlited, you know, you know, on the spot,
Speaker 9: but they didn't have the money. But they did give
Speaker 9: you know, Joe Browman, you know, Ludo's enough money to
Speaker 9: actually you know, make a five minute pilot, which BBC
Speaker 9: Studios loved. But as part of the deal, BBC Studios
Speaker 9: wound up with the international distribution and licensing rights and
Speaker 9: you know, and the you know, the ABC guys like, well,
Speaker 9: we don't have those kind of resources, so they might
Speaker 9: as well, they might as well, you know, you know,
Speaker 9: you know, take that. But so then they're the guys
Speaker 9: that have been making making you know, you know, all
Speaker 9: the money. I mean, you know, LUDA Studios controls it,
Speaker 9: so obviously they're making money. Joe gets a gets a
Speaker 9: percentage of the revenues. But but they're the people doing
Speaker 9: all the toy deals, okay and all that.
Speaker 4: Yeah, well what about Disney, Well we'll watch it in most.
Speaker 5: Of the world.
Speaker 3: Yeah.
Speaker 9: No, I mean, I think I said before I came
Speaker 9: into this whole thing, this is a Disney show. You know,
Speaker 9: oh no, it's just a show. They licensed it in
Speaker 9: twenty nineteen. They outbid a whole lot of other including
Speaker 9: Nickelodeon to uh, you know, you know, for for the
Speaker 9: rights rights to distribute the show, i e. You know,
Speaker 9: on their platforms, on Disney Junior, Disney Channel and on
Speaker 9: Disney Plus. But what they passed up at the time
Speaker 9: they also had had had the chance to license the
Speaker 9: merchandising and the theme park.
Speaker 3: Rights, which they understand.
Speaker 9: Yeah yeah, but but but but but but but so
Speaker 9: that's you know, that's something they really regret now because anyway, yeah, good.
Speaker 3: Okay, we'll get about a minute left.
Speaker 4: Season four. Is there going to be a season four?
Speaker 3: Asking for his kids?
Speaker 9: Well, well, you know there has there hasn't. It hasn't
Speaker 9: been announced, and uh you know, season three is about
Speaker 9: to culminate with this with a special episode. The sign
Speaker 9: is twenty eight minutes long, and uh, you know, people
Speaker 9: are sort of saying, oh, you know, there's going to
Speaker 9: be a season four, but well, well, actually nobody can
Speaker 9: say for sure, and we're trying to act as if
Speaker 9: there's going to be one. But season three was greenlit
Speaker 9: in twenty twenty. I mean that's been running in Australia
Speaker 9: since twenty twenty ONETHS so so so basically they wrapped,
Speaker 9: you know, they wrapped season three, you know, you know
Speaker 9: in like around in twenty you know, sometime in like
Speaker 9: twenty twenty two, maybe late twenty twenty's. So there's nothing
Speaker 9: else out there. And this is when when you know,
Speaker 9: the excitement about the show, it's just you know, it
Speaker 9: just keeps getting higher and higher, you know, you know,
Speaker 9: people are really excited about the time. But then what
Speaker 9: and also what's Blue worth? You know I didn't mention
Speaker 9: mentioned before, but but you know Blue has been valued,
Speaker 9: you know as you know, said to be worth as
Speaker 9: much as two billion dollars. It could be worth it,
Speaker 9: you know, going forward, it could be worth as much
Speaker 9: as Peppa Pig was and it was sold to Hasbro. Yeah,
Speaker 9: you know, if it's for four billion dollars, but with
Speaker 9: three seasons, you know, I don't know, and it's just unclear.
Speaker 9: Joe browm who's really a creative genus whether or not
Speaker 9: you know, he wants to keep going interesting.
Speaker 3: Well, and when you're a balloon in the Thanksgivings Day
Speaker 3: Thanks Aavy Day parade, you know You're a big deal.
Speaker 3: This was a gem. Devin Leonard, a senior global business
Speaker 3: writer for Bloomberg business Week. It's the cover story of
Speaker 3: the new issue of Bloomberg Business Week that will be
Speaker 3: out on newsstands, already online and on the Bloomberg Terurnal. Devin, thanks.
Speaker 2: Umbromac a journal.
Speaker 3: How about you let me drive?
Speaker 4: Oh no, no, no, no, who's going to drive?
Speaker 8: Honey?
Speaker 4: Please, I'll gravel.
Speaker 3: Wait, I want to drive.
Speaker 2: It's good question. This is the drive to the globe.
Speaker 2: We'll buy around each other down on Bloomberg Radio.
Speaker 4: All right, Well, I don't have to tell any of you.
Speaker 4: This shares a video more than eighty percent so far
Speaker 4: this year, last year forty percent. Although our next guest
Speaker 4: is optimistic about the long term productivity potential of AI
Speaker 4: for business Carol, he says investors need to be selective
Speaker 4: and don't get carried away with the momentum enthusias.
Speaker 3: Yeah, I believe that's Dock is the second best performing
Speaker 3: name in the S and P F.
Speaker 4: What's the first super micro?
Speaker 9: Right?
Speaker 4: Yeah, another AI.
Speaker 3: Play exactly exactly, But it hasn't been in the S.
Speaker 4: And P five hundred all year, so we can't really No.
Speaker 3: That's that's fair. But nonetheless, but Nvidio was the top
Speaker 3: performing name in the S and P five hundred last year. Hey,
Speaker 3: so let's get to it. Let's bring in our drive
Speaker 3: to the closed guest. Alan Lance back with us, director
Speaker 3: of research at Lance Global dot Com, President of Allan B.
Speaker 3: Lance Associates, joining us once again from Toledo, Ohio. Allan,
Speaker 3: good to have you back with us. Talk to us
Speaker 3: about Yeah, nice to have you here. So when we
Speaker 3: talk about Nvidia, what do you think that there's more
Speaker 3: room to run or that you know that there's yeah,
Speaker 3: break it down for us.
Speaker 10: Yeah, I think you know, it's going to be winners
Speaker 10: and losers differentiated much more so than last year. I think,
Speaker 10: like twenty twenty three, Apple was up when they had
Speaker 10: flat earnings and and really just rode that wave of
Speaker 10: the AI and the mega you know tech theme. But
Speaker 10: you know, this year, I think what we're seeing are
Speaker 10: the winners and losers. You we liked in video going
Speaker 10: into the year, and we liked Amazon and Meta and
Speaker 10: Google Alphabet and basically the two that we didn't like
Speaker 10: was Apple and and Tesla. And it's really shown just
Speaker 10: the you know, the first three months of the year
Speaker 10: where in video is still I think cheap. I mean
Speaker 10: I would buy really fifty area or under.
Speaker 4: If you would buy it, sorry repeat that, you'd buy
Speaker 4: a win like eight.
Speaker 10: Fifty there, you know, like a week or so ago,
Speaker 10: and we were nibbling on it for clients that don't
Speaker 10: own it. We have a lot of clients that own
Speaker 10: all those and we sold some Tesla in the two hundreds,
Speaker 10: and we'll probably revisit Tesla if it continues to weaken.
Speaker 10: But you know, I think they are dealt with the
Speaker 10: hardest hand to him here, and and you know, Apple
Speaker 10: is the second most difficult. The one we'd probably buy
Speaker 10: at the Magnificent seven or the former Magnificent seven would
Speaker 10: be Alphabet, just because I think they really watched the
Speaker 10: lots of Gemini, and I think they've got some good
Speaker 10: things to come. And they're going to do probably what
Speaker 10: Meta did and why we like Meta, and that's just
Speaker 10: cut back expenses and really focus on certain areas. And
Speaker 10: Apple's doing that. It's just going to take longer, and
Speaker 10: there's more certainty.
Speaker 3: On that Magnificent seven there, you know, like we've been
Speaker 3: calling it Magnificent four, but on the Magnificent seven, JP
Speaker 3: Morgan about a month ago said Magnificent seven stocks are
Speaker 3: cheaper versus the rest of the equity market than they
Speaker 3: were five years ago, given their latest set of earnings,
Speaker 3: and they kind of put that out so they believe
Speaker 3: that there was more room to run. Having said that,
Speaker 3: how do you kind of distinguish alan between getting caught
Speaker 3: up in momentum plays and just getting caught up in
Speaker 3: that euphoria versus really kind of understanding the fundamental plays,
Speaker 3: which is what you seem to be breaking down when
Speaker 3: it comes to a name like Nvidia.
Speaker 10: Yeah, it's really the fundamentals. I mean, video is cheaper
Speaker 10: than it was a year ago, even though it's done
Speaker 10: so much as far as in the pre shation side,
Speaker 10: while you have a Tesla that's struggling in an Apple
Speaker 10: you know that hasn't shown growth and you know, multiple
Speaker 10: quarters so so. So I think that that's the difference.
Speaker 10: They all rode up in twenty three and now it's
Speaker 10: a matter of people looking at the fundamentals and and
Speaker 10: I think that's going to be the key areas as
Speaker 10: far as into the future. Even as this AI plays out,
Speaker 10: there's going to be big winners and losers and and
Speaker 10: you know, you want to make sure you're in the
Speaker 10: right areas. Everybody's gonna be talking about it and saying
Speaker 10: that they have an advantage with it, but you know
Speaker 10: there's it's going to be few and far between. But
Speaker 10: that that's the biggest difference I think is just looking
Speaker 10: at the fundamentals instead of just momentum and technicals. Uh right,
Speaker 10: and you know, staying away from the higher risk areas.
Speaker 10: Even in video. You know, if it continues to move up,
Speaker 10: you know we'll we'll start lightning positions, especially when when
Speaker 10: it's over concentrated, which it is for some of our accounts.
Speaker 4: Hey Allan, I'm curious about Apple because it's down twelve
Speaker 4: percent so far this year. Our own Mark German out
Speaker 4: with a pretty cool story. I don't know if you've
Speaker 4: had a chance to read it.
Speaker 3: Not so magnificent this year though, No, not no.
Speaker 4: Like I said, down twelve percent, Apple's exploring robots as
Speaker 4: its next big thing after the car fizzles. Where does
Speaker 4: Apple need to go from here for you to get
Speaker 4: to a place where you could start buying and holding again.
Speaker 10: That's a great question. I think another ten percent down
Speaker 10: we'd start looking at it again to buy for accounts
Speaker 10: that don't don't own it. I still think I love
Speaker 10: their you know ecosystem. You know, it's a great company.
Speaker 10: It's just a matter of there's a lot of uncertainty.
Speaker 10: They've got a lot of uh, you know, headwinds with
Speaker 10: China and and different things that they're they're trying to
Speaker 10: square away. It's kind of what we saw, you know,
Speaker 10: with with with Meta, you know when when they had
Speaker 10: their their problems in twenty twenty two. And I think
Speaker 10: Alpha Alphabet and unfortunately Apple will have to go through
Speaker 10: that and the Apple I think the headwinds are even stronger.
Speaker 4: And that I mean to be a year of efficiency
Speaker 4: at Apple Alan where they'd lay off thousands of people
Speaker 4: like Meta did. I mean, that's one way medicare.
Speaker 10: I think Alphabet will be the first to start doing that,
Speaker 10: you know, in a major degree and start cutting back.
Speaker 10: But I think if you continue to see the results
Speaker 10: on Apple, we might even see it there.
Speaker 3: But does Apple need to find a new source of revenue?
Speaker 2: Right?
Speaker 3: The iPhone has been you know, such an outstanding product
Speaker 3: for them, right and still the bulk of their revenues.
Speaker 3: But having said that, they scrapped, you know, after almost
Speaker 3: ten years. The car project we're talking about Mark German
Speaker 3: and is exclusive on exploring robots is kind of the
Speaker 3: next big thing. Do they need to in your view,
Speaker 3: they'll find a new source of revenue. I feel like
Speaker 3: we've been talking about this for Apple for a long time,
Speaker 3: and yet the Apple iPhone continues to.
Speaker 10: Deliver exactly exactly, you know, and their service, you know,
Speaker 10: services really picked up, you know, with the apps and
Speaker 10: that you know they have some regulatory you know issues
Speaker 10: and and uh yeah they do that. That's one of
Speaker 10: the reasons we were you know, negative more negative on
Speaker 10: Apple and and Tesla, just because of the uncertainty. And
Speaker 10: you know, we can see the revenue sources with Matta,
Speaker 10: we can see it with Amazon and obviously in the
Speaker 10: video has come through with Flying Colors, But with Apple
Speaker 10: and Tesla, I think it's difficult. They definitely need but
Speaker 10: you know it's unclear right now. And that's why you know,
Speaker 10: we wouldn't chase it, you know, from a standpoint of
Speaker 10: buying it, just because it's down from one ninety to
Speaker 10: you know, one sixty nine. I think you know, in
Speaker 10: the one forties, we'd start revisiting it. And if it
Speaker 10: looked like they're starting to do the right things, you know,
Speaker 10: like I think Alphabet is. Then you know it would
Speaker 10: be time to start accumulating in the weakness.
Speaker 3: All right, Good to leave it there, Hey, listen, Thank
Speaker 3: you so much. Apple shares by the way, folks, just
Speaker 3: up about eight tens of a percent here in today's session.
Speaker 3: And a quick check on what Alphabet is up to.
Speaker 3: Alphabet is up just about two tens of a percent,
Speaker 3: So little change there, Alan, thank you so much, really
Speaker 3: appreciate it. Alan Lance, director of Research at Lance Global
Speaker 3: dot com, President of Alan B. Lance and Associates, Joining
Speaker 3: us once again from Toledo, Ohio.
Speaker 2: This is the Bloomberg Business Week podcast, available on Apple, Spotify,
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