WEBVTT - Adobe Falls and Bitcoin Slides from Record High 0:00:02.600 --> 0:00:07.320 Bloomberg Audio Studios, podcasts, radio news. 0:00:09.560 --> 0:00:12.320 From the heart where Innovation, money and power. 0:00:12.440 --> 0:00:14.800 Collie in Silicon Valley, Nbon. 0:00:15.160 --> 0:00:18.440 This is Bloomberg Technology with Caroline Hyde and. 0:00:18.600 --> 0:00:19.680 Ed Ludlow. 0:00:32.800 --> 0:00:35.000 And Caroline Heide at Blomberg's world headquarters in New York. 0:00:35.080 --> 0:00:38.239 Ed Ludlow, he's off today. This is Bloomberg Technology coming up. 0:00:38.479 --> 0:00:39.640 Full earnings coverage. 0:00:39.640 --> 0:00:41.440 Ahead. Is Adobe fools by the most of this two 0:00:41.479 --> 0:00:44.519 thousand and two. That's on phears of AI competition. We'll 0:00:44.560 --> 0:00:45.400 break down the results. 0:00:45.720 --> 0:00:48.520 Plus bitcoins slide from its record high continues. 0:00:48.640 --> 0:00:50.879 That's a bubble talk escalate. 0:00:51.280 --> 0:00:54.040 We'll discuss whether the bull run can continue, and we'll 0:00:54.040 --> 0:00:56.600 wrap the week that was for TikTok after the House 0:00:56.680 --> 0:00:59.800 voted to ban the social app or have it divested. 0:01:00.240 --> 0:01:01.920 What can we expect from the Senate. 0:01:02.360 --> 0:01:05.520 Adobe the biggest mover on the Nasdaq one hundred today, 0:01:05.520 --> 0:01:07.720 we're off by almost fourteen percent. As we said, I mean, 0:01:07.760 --> 0:01:10.959 having its worst way day in several decades. Let's talk 0:01:11.000 --> 0:01:13.280 about why it's straight to the earnings with Bertie Ford 0:01:13.400 --> 0:01:16.200 and could you actually dig into the individual numbers. Perhaps 0:01:16.240 --> 0:01:18.720 it wasn't that big a miss, but the amount. 0:01:18.440 --> 0:01:21.279 That the stock ran up last year. People are worried. 0:01:21.920 --> 0:01:25.320 You ask investors which software companies will make money from AI. 0:01:25.440 --> 0:01:28.679 In twenty twenty four, it was two names, Microsoft and Adobe. 0:01:29.160 --> 0:01:32.280 After last night, investors are saying, maybe it's just Microsoft, 0:01:32.480 --> 0:01:36.200 right because they expected to see this big surge in 0:01:36.440 --> 0:01:39.960 new business because of the AI products. Remember, Adobe has 0:01:39.959 --> 0:01:42.640 spent a lot of time and money putting its model 0:01:42.800 --> 0:01:46.399 into Photoshop illustrators so you can press that button generate 0:01:46.959 --> 0:01:48.080 and create a new image. 0:01:48.160 --> 0:01:50.960 Right But it appears that right now they are. 0:01:50.840 --> 0:01:54.200 Still more focused on new user acquisition and that kind 0:01:54.240 --> 0:01:57.880 of monetization of this new innovation is not coming. 0:01:57.640 --> 0:01:58.960 At least for a couple of quarters. 0:02:00.200 --> 0:02:03.760 In the biggest full for Adobe since twenty twenty two, 0:02:04.080 --> 0:02:05.240 September the fifteenth. 0:02:05.880 --> 0:02:08.120 I'm interested as to how. 0:02:07.960 --> 0:02:10.240 That is really focusing a light or some of the 0:02:10.320 --> 0:02:11.840 startups that aren't publicly traded. 0:02:11.960 --> 0:02:13.320 We can't see these sorts of moves in. 0:02:13.600 --> 0:02:15.400 I mean, Sora must have been the big one that 0:02:15.440 --> 0:02:16.840 everyone looked at and thought. 0:02:16.800 --> 0:02:19.680 Oh boy, he's got to race to catch up here. 0:02:19.880 --> 0:02:22.239 It was a funny moment about a year ago Dolly 0:02:22.440 --> 0:02:25.040 came out and mid Journey came out. That image generation 0:02:25.720 --> 0:02:28.600 people got real scared for Adobe. They responded with new 0:02:28.600 --> 0:02:32.600 innovations and photoshop. Investors said, Okay, we'll be fine. Sora 0:02:32.760 --> 0:02:35.360 came out and it's like Groundhog Day, right, everybody is 0:02:35.400 --> 0:02:35.960 afraid again. 0:02:36.000 --> 0:02:38.600 There's this same energy in the air that hey. 0:02:39.240 --> 0:02:43.639 This new piece of technology could make Adobe entirely obsolete, right. 0:02:43.680 --> 0:02:46.079 I mean, there was an interesting conversation on the earnings 0:02:46.160 --> 0:02:49.519 last night where an analyst had to Adobe, Hey, folks 0:02:49.520 --> 0:02:52.240 are getting worried that in the long run this software 0:02:52.320 --> 0:02:54.960 could be unused. Can you explain to us why that's 0:02:54.960 --> 0:02:55.600 not the case. 0:02:56.120 --> 0:02:56.720 That's not a. 0:02:56.720 --> 0:02:59.720 Level of candor and anxiety you tend to hear on these. 0:02:59.600 --> 0:03:03.880 Calls CA I mean, this is what investors ultimately want, 0:03:04.000 --> 0:03:08.040 is transparency, and actually we're kind of hearing that from 0:03:08.320 --> 0:03:09.040 the CEO. 0:03:08.919 --> 0:03:10.040 And a direction of trouble. 0:03:10.120 --> 0:03:13.079 What is there anyone that's bullish that's thinking, actually, look, 0:03:13.080 --> 0:03:15.400 they've just been conservative here. Here we will start to 0:03:15.400 --> 0:03:17.359 see generator of AI coming to the bottom line, to 0:03:17.480 --> 0:03:18.760 profitability to sales. 0:03:19.120 --> 0:03:22.080 Yeah, there's this argument that right now, the beauty of 0:03:22.120 --> 0:03:24.920 being a big company is that you can price for 0:03:25.480 --> 0:03:26.640 customer acquisition, and. 0:03:26.680 --> 0:03:27.720 That's what Adobe's doing. 0:03:27.760 --> 0:03:29.600 Now, that's done so well over the years that it's 0:03:29.639 --> 0:03:32.200 going to kind of get all the creatives in the 0:03:32.200 --> 0:03:35.400 ecosystem using its products and then monetize it. 0:03:35.880 --> 0:03:37.000 Right, that's the argument. 0:03:37.800 --> 0:03:40.760 Some other folks might see the numbers and say, we 0:03:40.800 --> 0:03:42.680 want a revenue uplift. Now, I don't know if we're 0:03:42.680 --> 0:03:45.560 willing to wait that long. When open AI is generating 0:03:45.640 --> 0:03:46.960 videos with prompts. 0:03:46.560 --> 0:03:50.200 Already to that point, I mean videos with prompts, it 0:03:50.240 --> 0:03:53.760 does feel as though that actually isn't just around the corner. 0:03:53.800 --> 0:03:54.960 I mean, what was it that. 0:03:54.880 --> 0:03:56.960 I think Nryan was saying that this notion that the 0:03:56.960 --> 0:03:59.960 next Oppenheim or will be done video prompt is not 0:04:00.160 --> 0:04:01.240 going to happen for decades. 0:04:01.400 --> 0:04:03.960 Yeah, And it's funny because he said this notion that 0:04:04.000 --> 0:04:05.920 the next op at Haybro we don't have prompts, it's 0:04:05.960 --> 0:04:06.720 not going to happen. 0:04:07.080 --> 0:04:09.160 Then he kind of pauses us at least for a 0:04:09.200 --> 0:04:11.400 couple decades, right, because there's. 0:04:11.200 --> 0:04:14.600 This understanding that AI will fundamentally change the way that 0:04:14.640 --> 0:04:17.240 applications for image and video happen. 0:04:17.360 --> 0:04:18.880 Right for now, you're. 0:04:18.680 --> 0:04:20.480 Just going to be able to tweak little things at 0:04:20.520 --> 0:04:23.640 the margins. A decade or two down the line are 0:04:23.680 --> 0:04:27.200 you going to have, you know, four hundred million creatives 0:04:27.240 --> 0:04:28.279 paying for photoshop. 0:04:28.680 --> 0:04:30.599 You might not need that many people. 0:04:31.440 --> 0:04:33.839 But if the training data is when they say it is, 0:04:33.880 --> 0:04:35.960 and you've got to put a protection there might be 0:04:36.000 --> 0:04:37.800 helpful to them in some way, shape or form. 0:04:38.160 --> 0:04:38.440 Yeah. 0:04:38.560 --> 0:04:40.680 No, absolutely right, And that's the big question around the 0:04:40.720 --> 0:04:44.520 training data, right is it that Adobe's big pitch as 0:04:44.560 --> 0:04:47.279 it relates to AI is that we have this safety, 0:04:47.400 --> 0:04:50.960 we have the copyright credentials. Whereas when it comes to 0:04:50.960 --> 0:04:53.240 open AI, there's this idea that, hey, where are you 0:04:53.279 --> 0:04:55.680 scraping it from? I think we all saw this very 0:04:55.680 --> 0:04:57.920 famous interview with our CTO a couple of days ago. 0:04:58.040 --> 0:04:59.480 He said, are you scraping from YouTube? 0:05:01.080 --> 0:05:02.000 You answer it? 0:05:02.560 --> 0:05:03.000 Answer it. 0:05:03.040 --> 0:05:05.000 I'm sure she has more answers to that question now, 0:05:05.040 --> 0:05:07.600 but some plenty of means being made with that particular 0:05:07.640 --> 0:05:10.000 interview by the Wall Street Journal. Thirty two buys still 0:05:10.000 --> 0:05:12.360 though on Adobe two sounds brilliant. 0:05:12.040 --> 0:05:12.440 To have you on. 0:05:12.520 --> 0:05:15.000 Thank you, Jody Forward running us through the latest and 0:05:15.040 --> 0:05:17.240 the big dive in the Adobe share price as we say, 0:05:17.640 --> 0:05:19.600 having its worst day since twenty twenty two. 0:05:19.720 --> 0:05:21.560 Coming up. Bitcoin it's retreating from. 0:05:21.440 --> 0:05:24.760 Its latest record high too, and that's going to take 0:05:24.800 --> 0:05:27.960 on why we've got citizens JMPS Devin Ryan joining us. 0:05:28.160 --> 0:05:44.120 This is Blueberg Technology. 0:05:46.400 --> 0:05:48.440 Let's just talk about crypto because there's been a week 0:05:48.480 --> 0:05:51.159 and Bitcoin there is actually pulling back from its recent 0:05:51.240 --> 0:05:54.120 record highs that it's recently set, and there's an intensifying 0:05:54.160 --> 0:05:56.360 debate about whether the ball run that we've seen across 0:05:56.360 --> 0:05:59.520 the cryptosphere is kind of evidence of just speculative froth 0:05:59.520 --> 0:06:01.080 that we're seeing across global markets. 0:06:01.240 --> 0:06:02.719 Let's break that down with Shannali beassec. 0:06:02.760 --> 0:06:06.760 And there's been some wild headlines, wild expectations today, the 0:06:06.760 --> 0:06:10.239 pullback yesterday, we're hearing of a monster cycle in crypto 0:06:10.320 --> 0:06:11.360 that was only just starting. 0:06:11.480 --> 0:06:13.920 Yeah, it's interesting because you have seen just super inflows 0:06:13.920 --> 0:06:16.000 into those ETFs, You have the having in front of you, 0:06:16.080 --> 0:06:17.560 and you have a lot of people saying you have 0:06:17.640 --> 0:06:21.240 this never before seen dynamic in bitcoin where you're going 0:06:21.320 --> 0:06:24.120 to have more demand while supply is decreasing, but at 0:06:24.160 --> 0:06:27.120 the same time there's leverage in these markets, Caroline, so. 0:06:27.200 --> 0:06:28.760 Not surprising to see a pullback. 0:06:28.800 --> 0:06:30.760 A lot of people have been calling from it, everyone 0:06:30.839 --> 0:06:34.400 from Glenn Goodman to Mike Novograts have expected there to 0:06:34.480 --> 0:06:37.000 be a pullback given the leverage that's been seen. At 0:06:37.000 --> 0:06:39.760 some point, when you're buying things on margin or buying 0:06:39.800 --> 0:06:42.400 things with money you don't have, there is always that 0:06:42.440 --> 0:06:45.880 potential for a little bit of a reversal. However, you 0:06:45.960 --> 0:06:48.480 do only see really us come full circle. 0:06:48.560 --> 0:06:49.080 For the week. 0:06:49.480 --> 0:06:52.919 We have still been well above sixty seven thousand, but 0:06:52.960 --> 0:06:55.520 we have seen bitcoin hit those new highs even just 0:06:55.560 --> 0:06:57.320 this week above seventy two thousand. 0:06:57.680 --> 0:06:59.760 Talk about the leverage and where it's coming in from 0:06:59.800 --> 0:07:02.800 the beause many would associate that with Asian investors, but 0:07:02.920 --> 0:07:05.360 we'll keep talking about the institutional bar that's just come 0:07:05.360 --> 0:07:07.799 into the market with these US bitcoins, bail etm. 0:07:08.000 --> 0:07:10.160 Just think about how much leverage there is in the 0:07:10.160 --> 0:07:12.040 system now. It's not the same type of leverage you 0:07:12.040 --> 0:07:14.120 saw in twenty twenty one with the same types of players. 0:07:14.160 --> 0:07:17.760 Of course, we saw those leverage intermediaries blow up, but 0:07:17.880 --> 0:07:20.280 now the type of leverage you're seeing are from things 0:07:20.400 --> 0:07:24.440 like finance perpetual futures, which are largely outside of the 0:07:24.520 --> 0:07:27.040 United States. You have them in bitcoin futures as well, 0:07:27.080 --> 0:07:29.680 which you buy futures on margin, and then you have 0:07:29.800 --> 0:07:33.200 other forms of leverage. You think micro strategy issuing bonds 0:07:33.600 --> 0:07:37.720 to buy bitcoin, and other big crypto players also tapping 0:07:37.760 --> 0:07:41.520 debt markets in order to really capture the part of 0:07:41.560 --> 0:07:44.200 this boom. So you can make an argument here that 0:07:44.320 --> 0:07:47.840 the leverage you're seeing is happening through safer entities, more 0:07:47.880 --> 0:07:50.560 regulated markets. Even in the United States. You think about 0:07:50.600 --> 0:07:54.000 some of the leverage you also see in leveraged ETFs 0:07:54.520 --> 0:07:57.680 for people trying to really amplify their exposure to bitcoin 0:07:57.760 --> 0:08:01.200 at these prices. Now, the big question is is everything 0:08:01.200 --> 0:08:04.560 we've expected out of the positivity in bitcoin priced in 0:08:04.720 --> 0:08:07.080 right now or is there another thing that will add 0:08:07.120 --> 0:08:08.600 some fuel to this cycle after that. 0:08:08.720 --> 0:08:12.280 Having we can keep an eye on correlations, correlations within crypto, 0:08:12.280 --> 0:08:14.360 Bitcoin down, Solana still up, but we also think about 0:08:14.400 --> 0:08:17.400 the correlations between tech stocks, more badley, the markets, and 0:08:17.440 --> 0:08:19.560 Cryptotionalibasik always does it all for. 0:08:19.640 --> 0:08:20.840 Us, and we thank her so much. 0:08:20.960 --> 0:08:23.600 Let's dig in really about some of the outsized returns 0:08:23.600 --> 0:08:25.680 we've seen of late, whether we can continue what this 0:08:25.720 --> 0:08:27.800 is in terms of a healthy or not pullback with 0:08:27.960 --> 0:08:31.560 citizens Damp Director of Financial Technology Research, Devin Ryan, it's 0:08:31.560 --> 0:08:34.080 great to speak to you again, Devon, and some of 0:08:34.120 --> 0:08:36.960 your notes have been pretty extraordinary in terms of the 0:08:37.000 --> 0:08:39.960 sheer scale of money that is entering this space and 0:08:40.000 --> 0:08:41.840 where you see some of the price points going. Can 0:08:41.840 --> 0:08:44.080 you just talk us through your main thesis of what 0:08:44.120 --> 0:08:47.120 the ets could do for bitcoin and the ecosystem more generally. 0:08:48.200 --> 0:08:50.640 Yeah, happy too, Caroline, Thanks so much for having me on. 0:08:50.720 --> 0:08:53.400 So we put on a note earlier this week, and 0:08:53.640 --> 0:08:57.160 we are talking about two hundred and twenty billion dollars 0:08:57.320 --> 0:08:59.720 of net inflows into these ETFs. 0:08:59.320 --> 0:09:00.480 Over the next three years. 0:09:00.520 --> 0:09:03.319 So for context, there's been about ten billion of net 0:09:03.360 --> 0:09:06.240 inflows over the first two months of launch, but we 0:09:06.280 --> 0:09:08.600 see that accelerating quite a bit, and the reason being 0:09:08.679 --> 0:09:12.120 is that we've essentially opened up a lot of additional 0:09:12.160 --> 0:09:16.079 capital that historically, up until January this year, was shut 0:09:16.080 --> 0:09:19.559 out of investing in crypto and bitcoin specifically. The biggest 0:09:19.559 --> 0:09:22.080 pool that is retail. 0:09:21.960 --> 0:09:23.640 Investors advisor led money. 0:09:23.640 --> 0:09:27.000 There's about twenty five trillion dollars of assets where advisors 0:09:27.000 --> 0:09:30.000 really want to custody the money within their own custodian, 0:09:30.080 --> 0:09:32.240 not move it out to somewhere like coinbase. And so 0:09:32.320 --> 0:09:36.000 ultimately now these advisors with the ETF approval. 0:09:35.800 --> 0:09:37.079 Can start to look at that. But I think we're 0:09:37.080 --> 0:09:37.640 in the first inning. 0:09:37.640 --> 0:09:39.920 I don't think advisors have really been allocated yet, so 0:09:40.320 --> 0:09:43.079 we see flows actually accelerating from here. 0:09:43.080 --> 0:09:44.319 So there will be volatility. 0:09:44.400 --> 0:09:47.880 But you know, in my career covering financials and fintech 0:09:47.920 --> 0:09:50.640 for twenty years, you know, follow the flows and when 0:09:50.640 --> 0:09:53.079 there's money coming into a new market and it's substantial, 0:09:53.080 --> 0:09:56.040 which we think it will be with these ETFs, it's 0:09:56.080 --> 0:09:57.040 really transformational. 0:09:57.520 --> 0:10:01.560 It is amazing that we've been talking some of these cycles. 0:10:01.120 --> 0:10:03.760 For years, but only now do we hear the like. 0:10:03.800 --> 0:10:06.840 So you Devin talking about two hundred and twenty billion 0:10:06.880 --> 0:10:09.920 dollars coming in, and we hear Bernstein yesterday out with 0:10:10.000 --> 0:10:10.880 a note saying. 0:10:10.679 --> 0:10:14.800 We are entering this monster cycle for crypto. What changed 0:10:14.800 --> 0:10:16.240 your tune? Was it the ETF? 0:10:17.240 --> 0:10:20.760 Yeah, We've been consistently constructive on the space, and you know, 0:10:20.760 --> 0:10:23.160 I cover Coinbase, which is in our view, kind of 0:10:23.160 --> 0:10:26.319 the biggest on ramp in the public markets into the industry. 0:10:26.559 --> 0:10:28.120 I think you guys touched on it. There's a lot 0:10:28.160 --> 0:10:30.800 of speculation going on. You have Bitcoin and then you 0:10:30.840 --> 0:10:33.520 have you know, twenty thousand other cryptocurrencies, and I think 0:10:33.559 --> 0:10:36.160 that many of those cryptocurrencies are going to be worthless 0:10:36.160 --> 0:10:36.440 when you. 0:10:36.440 --> 0:10:38.200 Look out over the next couple of decades. 0:10:38.280 --> 0:10:40.640 That being said, we are in the early innings, and 0:10:40.640 --> 0:10:43.559 so people are putting their chips on various blockchains that 0:10:43.600 --> 0:10:46.440 they think will have development on top of them. And 0:10:46.600 --> 0:10:48.400 just like you would in a technology stock or even 0:10:48.440 --> 0:10:51.199 a biotech stock that is, you know, in its formation days, 0:10:51.240 --> 0:10:53.280 you know, it's going to take ten years to get 0:10:53.320 --> 0:10:56.000 to commercial application, and a lot of these blockchains are 0:10:56.040 --> 0:10:57.880 in their first inning and people are speculating on which 0:10:57.880 --> 0:11:00.800 ones will be utilized. And so I'm very bullish on 0:11:01.080 --> 0:11:04.760 the applications the block technology that's kind of the broader 0:11:04.800 --> 0:11:07.920 crypto ecosystem that coinbase is benefiting from. And then the 0:11:07.920 --> 0:11:10.600 ETF for bitcoin is in my opinion, kind of its 0:11:10.600 --> 0:11:13.440 own animal. But we do see again, you know, we 0:11:13.480 --> 0:11:16.680 think people are going to increasingly move some money, you know, 0:11:16.760 --> 0:11:19.240 small amounts, but small amounts now that you've opened the 0:11:19.280 --> 0:11:21.480 door to, in our opinion, over one hundred trillion dollars 0:11:21.480 --> 0:11:24.080 of capital in the US that potentially could look at 0:11:24.120 --> 0:11:27.200 allocating something here, and we're shut out, you know, much 0:11:27.200 --> 0:11:28.720 of that until January eleventh. 0:11:29.400 --> 0:11:32.280 You mentioned coinbase, and just a disclosure that my husband 0:11:32.320 --> 0:11:34.760 is a director over at coinbase, but I am interested 0:11:34.800 --> 0:11:37.760 in outside of the space of just Bitcoin. 0:11:37.800 --> 0:11:39.280 Bitcoin is sort of hoovered. 0:11:39.080 --> 0:11:40.880 Up all the oxygen in terms of being able to 0:11:40.880 --> 0:11:42.280 shine all out on the price, being able to talk 0:11:42.320 --> 0:11:45.040 about the ets but there is talk of an e ETF. 0:11:45.080 --> 0:11:48.160 There is still Solana doing very well, for example, other 0:11:48.240 --> 0:11:48.840 old coins. 0:11:49.600 --> 0:11:51.920 How does that spillover effect continue. 0:11:52.480 --> 0:11:53.920 Yeah, it's a great question, Caroline. 0:11:53.920 --> 0:11:55.880 So I think there was a lot of discussion in 0:11:55.920 --> 0:11:58.520 the market leading to the Bitcoin ETF that would be 0:11:58.520 --> 0:12:01.360 cannibalistic and that everybody would just trade the ETF and 0:12:01.400 --> 0:12:03.559 then that would hurt Coinbase. We were taking the other 0:12:03.600 --> 0:12:05.160 side of that argument. But I think the evidence is 0:12:05.200 --> 0:12:08.840 now clear that in reality what's happened is there's been 0:12:08.880 --> 0:12:10.960 a significant amount of more money that's moved into the 0:12:11.000 --> 0:12:14.880 broader space, both Bitcoin, where Coinbase is participating a lot 0:12:14.880 --> 0:12:17.959 of the trading of the underlying assets in the ETF 0:12:18.000 --> 0:12:20.480 and then elsewhere. But their volumes are up over one 0:12:20.559 --> 0:12:24.480 hundred percent trading volumes over the first quarter last year, 0:12:24.720 --> 0:12:26.480 and a lot of that's happening in all of these 0:12:26.520 --> 0:12:29.480 other assets, because again, people are more interested in learning 0:12:29.480 --> 0:12:32.960 about the space and taking views on other blockchain technologies 0:12:32.960 --> 0:12:35.800 and which ones you could be successful, and so that's 0:12:35.880 --> 0:12:37.960 really what's happening. I think we're still kind of in 0:12:37.960 --> 0:12:40.400 the early days of that as well. That's coinbase. But 0:12:40.400 --> 0:12:43.360 then Coinbase is also, you know, in our opinion, going 0:12:43.400 --> 0:12:45.400 to have their hand in virtually every aspect of how 0:12:45.440 --> 0:12:48.640 this industry grows, whether it's tokenization of real world assets, 0:12:48.880 --> 0:12:53.400 whether it's you know, payments and remittance and development of 0:12:53.520 --> 0:12:54.600 Web three applications. 0:12:54.600 --> 0:12:56.280 You know, they have their own blockchain called Base. 0:12:56.720 --> 0:12:58.360 You know, they're very active and staking and there's going 0:12:58.400 --> 0:13:00.400 to be a lot of innovation in this industry that 0:13:00.440 --> 0:13:01.760 I don't think has even happened yet. 0:13:01.800 --> 0:13:02.839 So coinbas to. 0:13:02.800 --> 0:13:05.080 Us is really a play on that growth, even more 0:13:05.120 --> 0:13:08.040 so than just trading volumes and you know, the exchange activity. 0:13:08.120 --> 0:13:11.199 It's interesting that Bernstein called out robin Hood is the 0:13:11.280 --> 0:13:11.880 key play. 0:13:12.040 --> 0:13:13.000 You've got a twenty. 0:13:12.720 --> 0:13:15.160 Five dollars price target, I believe in that particular company. 0:13:15.640 --> 0:13:18.560 Where else could be benefiting in terms of brokerages. Is 0:13:18.600 --> 0:13:21.959 it all about the institutional play and the retail play 0:13:22.000 --> 0:13:23.760 Still yeah. 0:13:23.559 --> 0:13:26.800 I think you know, Galaxy is a name they're Canadian 0:13:26.840 --> 0:13:29.800 listed right now, but that's Michael Lenovogratz. As you guys mentioned, 0:13:30.360 --> 0:13:32.920 They're clearly a public market play here. We know a 0:13:32.960 --> 0:13:34.640 lot of the private players in this space, and there's 0:13:34.679 --> 0:13:37.360 a lot of really interesting companies in the private markets. 0:13:37.640 --> 0:13:40.760 Robin Hood, you know, clearly has an investor base that 0:13:40.960 --> 0:13:44.480 is I think in the demographic that is active in crypto. 0:13:44.559 --> 0:13:46.760 It's not as big of a driver for their business model. 0:13:47.040 --> 0:13:50.520 Coinbase is really a pure play on the crypto ecosystem, 0:13:50.559 --> 0:13:54.199 both trading but then also development and how was blockchain 0:13:54.520 --> 0:13:56.960 used over the next five to ten years, and they're 0:13:56.960 --> 0:13:59.280 going to participate in all that. I think Robinhood has 0:13:59.440 --> 0:14:00.920 you know, their tenacles into some of that. 0:14:01.120 --> 0:14:03.960 But you know, robin Hoood's a broader brokerage, which is good. 0:14:04.200 --> 0:14:06.600 A lot of the other brokerages really, you know, they're 0:14:06.600 --> 0:14:08.800 barely there yet. And that's also, in our opinion, part 0:14:08.840 --> 0:14:12.000 of the opportunity the self directed market. I would put 0:14:12.040 --> 0:14:16.040 in that bucket of retail investors and we estimate that 0:14:16.080 --> 0:14:18.679 two hundred and twenty billion dollars of net inflows. You 0:14:18.720 --> 0:14:20.800 one hundred and sixty one hundred and seventy billion of 0:14:20.840 --> 0:14:23.400 that is still going to come from retail, whether self 0:14:23.440 --> 0:14:26.600 directed or advisor led. And I've covered the wealth management 0:14:26.600 --> 0:14:30.400 market for twenty years. These are folks that again they're 0:14:30.680 --> 0:14:33.640 relatively conservative, but they want to invest where the customers 0:14:33.680 --> 0:14:34.920 want to invest, and I think the people are going 0:14:34.960 --> 0:14:39.480 to want some small access to this new asset class. 0:14:39.520 --> 0:14:43.040 Sticking with it, citizens, JMP Director of Financial Technology Research 0:14:43.080 --> 0:14:45.320 Devin Ryan. Great to talk through your note through some 0:14:45.360 --> 0:14:46.200 of the players within it. 0:14:46.400 --> 0:14:57.000 Thank you time now for talking tech. First up, TikTok. 0:14:56.680 --> 0:15:00.000 Owner bike Dance is human resources chief taking the helm. 0:15:00.120 --> 0:15:03.440 The companies sharply reduced gaming division and we'll refocus the 0:15:03.480 --> 0:15:06.240 business on more personal content in look, an effort to 0:15:06.280 --> 0:15:09.640 avoid the head on clash with Tencent is a pivot 0:15:09.760 --> 0:15:11.880 for a unit that once hoped to take on the 0:15:11.960 --> 0:15:16.320 leading Chinese game distribution leaders like Tencent and of course Nettes. Meanwhile, 0:15:16.760 --> 0:15:20.360 the Chinese government is quietly encouraging eed makers from BYD 0:15:20.520 --> 0:15:24.000 to Giely to sharply increase their purchases from local auto 0:15:24.080 --> 0:15:26.400 chip makers. Is in an effort to reduce reliance on 0:15:26.480 --> 0:15:27.280 Western imports. 0:15:27.400 --> 0:15:30.040 Of course boosts China's own domestics semi conductor industry. 0:15:30.520 --> 0:15:33.320 Plus, the US plans to award more than six billion 0:15:33.360 --> 0:15:36.240 dollars to Samsung to help the chip maker expand beyond 0:15:36.360 --> 0:15:39.600 its project in Texas, the federal funding for South Korea's 0:15:39.640 --> 0:15:43.480 leading chip maker we're becoming, alongside significant additional US investment 0:15:43.560 --> 0:15:44.480 by the firm. 0:15:44.640 --> 0:15:46.400 All of that, according to sources. 0:15:47.120 --> 0:15:49.760 Now, let's turn our attention to cybersecurity, always top of 0:15:49.800 --> 0:15:53.880 mind for executives, the board of businesses, and you and 0:15:53.920 --> 0:15:57.160 me as individuals. Microsoft Corporate Vice President Security, Compliance, Identity 0:15:57.160 --> 0:15:59.360 and Management, Basu Jaka is here to tell us all 0:15:59.360 --> 0:16:02.840 about microsf co Pilot for Security. It's a generative AI 0:16:02.880 --> 0:16:05.960 offering that will be being made widely available at prefers. 0:16:06.360 --> 0:16:07.920 What's the aim here for you. 0:16:08.120 --> 0:16:09.920 To support security it professionals? 0:16:09.960 --> 0:16:11.440 How much easier is their life going to get? 0:16:12.440 --> 0:16:12.640 Well? 0:16:12.840 --> 0:16:15.160 Caroline, it's so great to be here with you. 0:16:15.240 --> 0:16:18.760 Thank you for having me to understand why we did 0:16:18.800 --> 0:16:21.040 go by it for security. Step back and look at 0:16:21.040 --> 0:16:25.400 what we're facing against and today the threat landscape is unprecedented. 0:16:25.440 --> 0:16:28.800 The speed, the scale, the sophistication of attacks is increasing. 0:16:29.240 --> 0:16:31.560 Just as an example, we're seeing a tanex increase in 0:16:31.640 --> 0:16:34.560 identity related attacks from three billion to thirty billion over 0:16:34.560 --> 0:16:36.160 the same time frame year over year. 0:16:36.600 --> 0:16:39.080 And this is why we designed GO Pilot for Security. 0:16:39.480 --> 0:16:43.160 It's the industry's first generative AI product and the industry's 0:16:43.240 --> 0:16:46.680 leading generative AI product that's based on open AICHATGBT four 0:16:46.680 --> 0:16:50.240 models plus a Microsoft Security model. And I do believe 0:16:50.480 --> 0:16:53.920 that the next eighteen months of AI innovation are going 0:16:53.960 --> 0:16:57.360 to determine the next eighteen years of cybersecurity. So that's 0:16:57.360 --> 0:16:59.640 why we did this, because we believe that Go Buy 0:16:59.640 --> 0:17:03.160 It for Beauty is going to help all defenders defend 0:17:03.160 --> 0:17:04.520 at machine speed and scale. 0:17:04.760 --> 0:17:06.480 I mean, this has been in beta, this has been 0:17:06.600 --> 0:17:07.960 quietly rolled out and tested. 0:17:08.560 --> 0:17:11.520 What does uptake Binlin, what is interest inbound men like? 0:17:12.680 --> 0:17:16.240 Yeah, we actually announced co part for security last March, 0:17:16.760 --> 0:17:19.679 and we went into private preview with tons of customers 0:17:19.680 --> 0:17:21.840 because we wanted to do co creation. We wanted our 0:17:21.880 --> 0:17:25.199 customers in the journey with us, and last fall we 0:17:25.280 --> 0:17:28.199 then expanded that to hundreds of customers as well as 0:17:28.240 --> 0:17:31.639 one hundred plus partners. What we've seen through that is 0:17:31.760 --> 0:17:34.680 it's making defenders faster no matter who you are. So 0:17:34.680 --> 0:17:37.719 if you're early in career, twenty six percent faster, if 0:17:37.760 --> 0:17:41.840 your seasoned professional twenty two percent faster. We've seen ninety 0:17:41.880 --> 0:17:44.200 seven percent of people want to use the tool again, 0:17:44.280 --> 0:17:46.560 so there's a lot of sentiment, of positive sentiment, a 0:17:46.560 --> 0:17:50.160 sentiment of joy using it, and a lot of organizations 0:17:50.160 --> 0:17:52.800 are ready to embrace this or really positive feedback. 0:17:53.520 --> 0:17:55.600 I'm going to ask a sensitive question here because you are, 0:17:55.640 --> 0:17:58.680 of course in charge of the security business. More broadly 0:17:58.720 --> 0:18:01.560 over at Microsoft, we've had some recent disclosures. I think 0:18:01.600 --> 0:18:03.560 of last summer, the Chinese hackers. I think of just 0:18:03.600 --> 0:18:07.679 a couple of months ago, the Russian affiliated hack that 0:18:07.720 --> 0:18:09.040 we understand. 0:18:08.520 --> 0:18:11.280 That you know, Senator Ron Wyden was saying, this is 0:18:11.320 --> 0:18:15.159 as a compromise, is inexcusable? How much questioning if you 0:18:15.240 --> 0:18:15.800 got on that? 0:18:16.040 --> 0:18:20.480