WEBVTT - Stocks Push Higher and Warner Brothers Plunges 0:00:01.160 --> 0:00:06.760 From Marhart where Innovation, Money and power Collie in Silicon Valley, NBN. 0:00:07.120 --> 0:00:10.640 This is Bloomberg Technology with Caroline Hyde and Ed. 0:00:10.680 --> 0:00:28.600 Ludlove live from San Francisco. This is Bloomberg Technology coming 0:00:28.680 --> 0:00:32.120 up full markets, courage ahead as stocks push higher amid 0:00:32.200 --> 0:00:37.280 fading recession fears, plus Warner Brothers plunges after a nine 0:00:37.360 --> 0:00:41.320 point one billion dollar right down and after spending nearly 0:00:41.479 --> 0:00:45.559 sixty days in space, NASA is working on a contingency 0:00:45.600 --> 0:00:49.680 plan to bring the star Liner crew home. Let's get 0:00:49.760 --> 0:00:51.919 right to financial markets, and I'm looking at them as 0:00:51.920 --> 0:00:55.960 that one hundred on a four day basis, it's interesting 0:00:56.000 --> 0:00:59.040 what's happening in the long run. That's actually Warner Brothers Discovery. 0:00:59.080 --> 0:01:00.960 So let's go there. Then that's a nice story for 0:01:01.000 --> 0:01:03.560 the day. We're down nine point three percent, nine point 0:01:03.640 --> 0:01:07.440 four percent. Look, the story is really clear. Nine point 0:01:07.520 --> 0:01:10.800 one billion dollar write down on the legacy TV networks. 0:01:10.959 --> 0:01:13.920 And the issue with that, or the story with that, 0:01:14.240 --> 0:01:18.160 is traditional linear TV is not valued as it was 0:01:18.440 --> 0:01:22.639 when Warner Brothers merged with Discovery because everyone's gone to streaming. 0:01:22.720 --> 0:01:25.200 Let's bring in Bloomberg's Hannah Miller, who's been covering the 0:01:25.280 --> 0:01:30.280 story and Hannah, it's a big number, it's overshadowed earnings 0:01:30.360 --> 0:01:33.720 and things aren't going particularly well. Give me the specifics 0:01:33.760 --> 0:01:37.000 of the write down and the reasons behind it. Yeah. 0:01:37.040 --> 0:01:41.000 So, basically, what CEO David Zaslav discussed on the earnings 0:01:41.080 --> 0:01:45.480 car was that things have drastically changed in the media landscape. 0:01:45.600 --> 0:01:49.040 Valuations are different, market conditions are different, and this is 0:01:49.040 --> 0:01:52.920 a more realistic value for their traditional TV networks, and 0:01:52.960 --> 0:01:55.480 this is a signal to other major media companies to 0:01:55.600 --> 0:01:58.520 maybe take a look at their own traditional TV holdings 0:01:58.680 --> 0:02:00.560 and see if they too are of valued. 0:02:01.480 --> 0:02:04.640 I want to really focus on the technology story within it, 0:02:04.640 --> 0:02:07.920 which I think is everyone went to streaming and so 0:02:07.960 --> 0:02:11.799 they were left with properties that just weren't worth what 0:02:11.840 --> 0:02:14.880 they were at the time. The other issue for Warner 0:02:14.880 --> 0:02:18.200 Brothers Discovery, of course Hannah has been now down eleven 0:02:18.240 --> 0:02:22.000 percent in the session, is what happened with sports rights 0:02:22.280 --> 0:02:25.160 and MBA. That was a point of discussion. Just update 0:02:25.280 --> 0:02:26.079 us on what's going on. 0:02:26.639 --> 0:02:28.720 Yeah, So what happened with Warner Brothers was that they 0:02:28.720 --> 0:02:33.080 missed out on a seventy six billion dollar deal to 0:02:33.200 --> 0:02:36.080 get media rights for NBA games starting for the twenty 0:02:36.080 --> 0:02:39.160 twenty five to twenty twenty sixth season. They are now 0:02:39.240 --> 0:02:43.640 suing the NBA alleging breach of contract. That lawsuit was 0:02:43.680 --> 0:02:46.560 mentioned briefly during the call, with Zaslov saying that they 0:02:46.560 --> 0:02:48.680 are confident in their position and it's in the hands 0:02:48.720 --> 0:02:49.640 of lawyers right now. 0:02:51.080 --> 0:02:54.720 Bloomberg's Hannah Miller a really interesting story, big market move. 0:02:54.760 --> 0:02:56.320 Thank you for keeving us up to date on it. 0:02:56.639 --> 0:02:59.240 Now let's get back to financial markets and bring in 0:02:59.280 --> 0:03:04.480 Sarah ketro Causeway, CEO, Fundamental Portfolio Manager. About forty nine 0:03:04.520 --> 0:03:07.720 billion dollars of assets under management, and we're trying to 0:03:07.760 --> 0:03:09.840 work out in aggregate what's going on. And as that 0:03:09.880 --> 0:03:13.200 one hundred has been an interesting index to track this week, 0:03:13.400 --> 0:03:17.320 the sort of anxiety of Monday faded on a weekly basis. 0:03:17.360 --> 0:03:19.520 We're still soft to eight tens to one percent. You've 0:03:19.520 --> 0:03:22.919 got concerns about growth. Then we've got some economic data 0:03:22.919 --> 0:03:26.200 this morning that makes us feel that maybe recession risks 0:03:26.200 --> 0:03:28.680 are fading and we have a clearer picture on the FED. 0:03:28.960 --> 0:03:31.440 When you woke up this morning, Sarah, what was your 0:03:31.480 --> 0:03:32.840 picture of financial markets? 0:03:33.960 --> 0:03:36.120 Well, it was about the same as it was yesterday, 0:03:36.160 --> 0:03:43.120 which is reasonably optimistic and that's a function of again 0:03:43.320 --> 0:03:48.480 so much liquidity added to the US and global economies during, during, 0:03:48.600 --> 0:03:51.560 and after the pandemic, and much of this is still 0:03:51.560 --> 0:03:55.520 working through the system. But we have still a very 0:03:55.520 --> 0:03:59.760 strong consumer in the US. It's labors holding up, wages 0:03:59.760 --> 0:04:02.560 are holding up. There isn't no reason to panic, even 0:04:02.600 --> 0:04:05.480 though markets do that from time to time. So we're 0:04:05.520 --> 0:04:09.800 looking forward to some good earnings from our companies and 0:04:09.880 --> 0:04:13.480 for those, for example in technology where they depend on 0:04:13.560 --> 0:04:16.360 industrial production to be well placed. 0:04:17.920 --> 0:04:20.120 Thank you for bringing it back to technology. This is 0:04:20.160 --> 0:04:23.720 Bloomberg Technology after all. I mean, it's interesting you go 0:04:23.720 --> 0:04:27.760 to earnings. The story was really clear from the hyperscalis 0:04:27.800 --> 0:04:33.520 in particular right the commitment to capital expenditures for AI infrastructure. 0:04:33.920 --> 0:04:36.359 Maybe in Microsoft's case, you learn the lesson that you 0:04:36.440 --> 0:04:40.160 just don't miss street estimates in this environment. How selective 0:04:40.160 --> 0:04:43.000 are you being within that group of hyperscalers or other 0:04:43.120 --> 0:04:46.359 names that we're so focused on around the AI story. 0:04:47.400 --> 0:04:50.840 Well, the AI story is like and this has been 0:04:50.920 --> 0:04:56.400 well encapsulated on our website. Bar Our Workflolow, manager for Telecommunications, 0:04:56.480 --> 0:04:59.080 Media and Technology, Brian Show and that there are three 0:04:59.240 --> 0:05:03.520 cycles and this first one building is all about the 0:05:04.960 --> 0:05:08.680 building basic building blocks, meeting semiconductors, and you certainly saw 0:05:08.760 --> 0:05:12.560 that n Nvidia boom, but the memory semiconductor stocks have 0:05:12.600 --> 0:05:15.040 had a big run too, as they should, they've had 0:05:15.080 --> 0:05:15.720 to pull back. 0:05:16.200 --> 0:05:17.240 They're very interesting. 0:05:17.240 --> 0:05:21.520 And then to your point about the hyperscalers, they're absolutely 0:05:21.680 --> 0:05:25.560 critical in the next phase, which is delivery, so we 0:05:25.640 --> 0:05:28.760 need them to build out the cloud infrastructure. And they're 0:05:28.800 --> 0:05:32.640 also this is true of the ones that we as 0:05:32.680 --> 0:05:36.600 value investors prefer, like Alphabet and Meta. They're benefiting from 0:05:36.640 --> 0:05:39.560 their use of AI as they get more customer engagement 0:05:40.440 --> 0:05:44.960 and a hyperscaler like Alphabet. Not only do they have 0:05:45.120 --> 0:05:50.520 tremendous they can look forward to in phase three the deployment. 0:05:50.240 --> 0:05:51.960 Getting enterprises on cloud. 0:05:52.200 --> 0:05:57.919 They enterprise must have massive cloud access because they have 0:05:58.160 --> 0:06:00.560 so much compute needs with the data. 0:06:02.680 --> 0:06:06.320 Monday was a global market event in the sense that 0:06:06.360 --> 0:06:09.000 it started in the Asian session, went to Europe and 0:06:09.040 --> 0:06:12.839 then to the United States, but it also shone a 0:06:12.920 --> 0:06:17.080 light on Taiwan and Korea those markets, and when I 0:06:17.120 --> 0:06:20.400 was looking at your holding, Samsung really jumps out. You 0:06:20.720 --> 0:06:24.360 have a particularly strong view on Samsung. Explain the thesis 0:06:24.400 --> 0:06:27.040 there and where it sits in your holdings. 0:06:28.279 --> 0:06:31.200 Well, you're correct, and Samsung is one of our in 0:06:31.520 --> 0:06:35.320 both our International and Global fund, one of our largest holdings. 0:06:35.800 --> 0:06:38.240 And the reason why is it Samsung trades it very 0:06:38.279 --> 0:06:42.200 reasonable multiples. It's trading somewhere around book value. Either could 0:06:42.200 --> 0:06:44.920 get to one and a half times book. But they're 0:06:44.960 --> 0:06:48.240 a major player in memory semiconductors and the need for 0:06:48.440 --> 0:06:53.240 memory as AI compute expands goes up multifold, so memory 0:06:53.279 --> 0:06:57.000 demand rising Inexora belief, which is great for Samsung. In 0:06:57.120 --> 0:07:00.800 d RAM they compete with Skae, Heinex and mic and 0:07:00.880 --> 0:07:03.320 Samsung's on the CUSP we think of a major breakthrough 0:07:03.320 --> 0:07:06.320 and high bandwid memory, so they will be able to 0:07:06.400 --> 0:07:10.880 provide the more advanced memory chips. And all this emphasis 0:07:10.920 --> 0:07:13.760 on high bend with put some pressure on regular DRAMs, 0:07:13.760 --> 0:07:15.000 so there's some shortages. 0:07:15.280 --> 0:07:16.400 We'd like to see this. 0:07:16.480 --> 0:07:19.520 So the supply demand balance is very much in favor 0:07:19.560 --> 0:07:22.000 of less supply and more demand. 0:07:22.040 --> 0:07:25.840 Good for pricing. So Samsung's well placed their plus in. 0:07:25.840 --> 0:07:29.720 This phase three of delivery they've got or in phase 0:07:29.760 --> 0:07:33.360 two in deployment. There they are with mobile phones that'll 0:07:33.400 --> 0:07:36.840 be AI enabled, so those Galaxy phones should fly off 0:07:36.840 --> 0:07:41.320 the shelf. They have other consumer electronics, they're in foundry 0:07:41.320 --> 0:07:44.200 and display, like Samsung has it all. 0:07:44.520 --> 0:07:47.160 It's really interesting to hear you outline that we've done 0:07:47.200 --> 0:07:49.360 quite a lot on the show about high bandwidth memory 0:07:49.720 --> 0:07:52.080 and that if there's going to be this ramp and 0:07:52.240 --> 0:07:56.320 expansion of AI accelerator driven growth, you have to have 0:07:56.400 --> 0:07:59.760 the corresponding high bandwidth memory. But we've not discussed as 0:07:59.840 --> 0:08:03.320 much with the investor base. Sticking with chips, you also 0:08:03.720 --> 0:08:07.640 are interested in some of the more cyclical areas automotive industrial. 0:08:08.200 --> 0:08:09.680 I look at some of the names that are outside 0:08:09.680 --> 0:08:13.680 the United States, Infinian renaissance over in Japan. Why is 0:08:13.720 --> 0:08:14.920 it that you like that area? 0:08:16.560 --> 0:08:19.400 Well, automotives. 0:08:19.400 --> 0:08:23.640 Maybe there's been a slowing of auto sales, but the 0:08:23.760 --> 0:08:26.520 SAR doesn't matter as much as the content That matters. 0:08:26.720 --> 0:08:33.440 Chip content, and these automotive related semiconductors and Samsung and 0:08:33.480 --> 0:08:37.960 rhanasas Samsung, German NASAs Japan are experts. 0:08:37.480 --> 0:08:38.120 In that area. 0:08:38.800 --> 0:08:40.600 So we're expecting them. 0:08:40.440 --> 0:08:45.760 To see again content growth overwhelm or be more important 0:08:45.840 --> 0:08:49.720 than overall auto sales borrowing a recession, and we're not 0:08:49.760 --> 0:08:53.160 expecting one anytime soon. But they're also very strong in 0:08:53.240 --> 0:08:58.560 industrial chips and to see that in industrial automation and 0:08:58.600 --> 0:09:02.040 then think about data center and the need for power regulation. 0:09:02.440 --> 0:09:05.120 They're both really well placed there and those stocks have 0:09:05.240 --> 0:09:10.040 fallen some thirty plus percent over the last one month. 0:09:10.080 --> 0:09:14.600 In the case is Rhanasus, so the value is there 0:09:14.600 --> 0:09:16.880 as well, so you get the under valuation and the 0:09:16.920 --> 0:09:19.199 growth upside. It's a great combination. 0:09:20.840 --> 0:09:22.840 Sarah Ketterer. Of course, where it's really good to have 0:09:22.880 --> 0:09:25.199 you here on Bloomberg Technology. Thank you for joining us 0:09:25.240 --> 0:09:28.160 and that focus on chips in particular. Okay, coming up 0:09:28.160 --> 0:09:29.959 on the show, we're going to be joined by the 0:09:30.000 --> 0:09:33.520 next Door CEO, Nivtalia on the company's earnings, but also 0:09:33.760 --> 0:09:39.480 this overhaul of Nextdoor the social network. Next that's next. Next? 0:09:40.360 --> 0:09:42.080 What who shares of Bumble? Have you seen? 0:09:42.120 --> 0:09:42.240 This? 0:09:43.280 --> 0:09:48.360 Dating is over? The stock is down the most on record, 0:09:48.800 --> 0:09:52.000 are a really severe cut to its outlook. There are 0:09:52.040 --> 0:09:55.600 some specific or idiosyncratic factors relating to Bumble and its 0:09:55.600 --> 0:09:59.000 properties within that, but it's a pretty grim look for 0:09:59.360 --> 0:10:01.920 the data environment or apt base dating and you look 0:10:01.920 --> 0:10:04.559 at the stop year to date down more than sixty percent. 0:10:04.920 --> 0:10:07.280 It's a name that will continue to track. This is 0:10:07.320 --> 0:10:30.320 Bloomberg Technology. Okay. Next doors second quarter revenue beat analyst estimates, 0:10:30.360 --> 0:10:34.440 and the company projected stronger than expected sales growth, pointing 0:10:34.720 --> 0:10:38.439 to improvements in the company's AD technology as a key 0:10:38.480 --> 0:10:42.200 driver of sales, and it's CEO announced plans for a 0:10:42.280 --> 0:10:47.319 quote complete transformation of Nextdoor's core social network. Delighted to 0:10:47.400 --> 0:10:50.480 say that the CEO near rev Talia, is here with 0:10:50.559 --> 0:10:52.840 us on set in San Francisco. This is interesting. Let's 0:10:52.880 --> 0:10:55.720 go through the financial stuff and then we'll get into 0:10:55.760 --> 0:10:59.920 the platform itself. It's kind of high single digits growth 0:11:00.040 --> 0:11:03.200 on the user base side, and then you talked a 0:11:03.200 --> 0:11:06.160 lot about where the AD growth is, but just the 0:11:06.240 --> 0:11:07.640 fact is behind both of. 0:11:07.760 --> 0:11:08.760 Pieces of growth. 0:11:08.960 --> 0:11:10.240 Sure, why is that happening? 0:11:10.320 --> 0:11:11.920 Yeah, thank you for having me, by the way, it's 0:11:11.960 --> 0:11:13.480 great to be here with you, Ed, And let me 0:11:13.520 --> 0:11:15.480 just go through the numbers very quickly, because we had 0:11:15.480 --> 0:11:19.080 a very solid and productive quarter. So on the revenue side, 0:11:19.120 --> 0:11:21.320 we grew eleven percent year over year, so the first 0:11:21.400 --> 0:11:23.880 time in a few quarters that we're returning to double 0:11:23.880 --> 0:11:24.600 digit guests that. 0:11:24.559 --> 0:11:25.720 We feel really good about. 0:11:25.840 --> 0:11:29.320 On the user side, over forty five million weekly active users. 0:11:29.520 --> 0:11:32.360 That represents eight percent year over year growth and then 0:11:32.440 --> 0:11:35.040 on the bottom line a loss of six million dollars, 0:11:35.200 --> 0:11:39.160 which represents twenty three points of adjustitebat margin improvement. So 0:11:39.520 --> 0:11:41.959 on all three of those vectors, we feel very good 0:11:41.960 --> 0:11:44.760 about our performance in Q two, and we also announced 0:11:44.760 --> 0:11:46.720 that we raised guidance for the rest of the year. 0:11:46.840 --> 0:11:50.120 So solid execution and we're looking towards the future now 0:11:50.160 --> 0:11:51.520 for the real potential of the company. 0:11:51.559 --> 0:11:55.000 So let's define complete transformation. You know there's been change 0:11:55.040 --> 0:11:56.880 a next Door, a change with you, A. 0:11:56.840 --> 0:11:58.520 Complete transformation of leadership. 0:11:58.600 --> 0:12:02.199 Yes, complete transformation leadership in a return, But what is 0:12:02.280 --> 0:12:04.920 it that you think that the actual platform will get 0:12:04.960 --> 0:12:08.680 to advertising? The actual platform needs to be different or 0:12:08.720 --> 0:12:09.440 do differently. 0:12:09.720 --> 0:12:13.240 Nextdoor has an amazing opportunity. We want to be the 0:12:13.400 --> 0:12:17.640 essential neighborhood network because we think local is so core 0:12:17.840 --> 0:12:21.280 to everyone's life. It's so important that we have rich 0:12:21.480 --> 0:12:24.120 local lives, and that is the opportunity for Nextdoor as 0:12:24.120 --> 0:12:28.199 a consumer internet company. But our potential is not reflected 0:12:28.240 --> 0:12:30.880 today in the quality of our product. So when we 0:12:30.920 --> 0:12:34.600 talk about complete transformation, we're talking about making the product 0:12:34.800 --> 0:12:38.400 so good that every time our users and advertisers visit. 0:12:38.320 --> 0:12:39.199 They're delighted. 0:12:39.440 --> 0:12:42.720 We have an extremely high bar, very high expectations, and 0:12:42.760 --> 0:12:45.080 so it seems a little over the top to say 0:12:45.120 --> 0:12:49.720 complete transformation. But we're setting our sites extremely high because 0:12:49.760 --> 0:12:51.520 we think we can reach that potential. 0:12:51.960 --> 0:12:54.360 There will be loads of people watching the program bloom, 0:12:54.360 --> 0:12:56.920 both technology audience, who who might be on next Door. 0:12:57.000 --> 0:12:59.320 My wife and I bought our first home in March 0:12:59.360 --> 0:12:59.840 of this year. 0:13:00.240 --> 0:13:02.120 Ninety million verified neighbors. 0:13:02.160 --> 0:13:03.760 But that's my point that we were used for a 0:13:03.800 --> 0:13:06.599 specific neighborhood and we wanted to learn about what was 0:13:06.640 --> 0:13:09.520 going on. That makes sense to go to next door, 0:13:09.920 --> 0:13:12.760 But I still look at scale, you know, compared to 0:13:12.800 --> 0:13:17.360 other social media platforms, quite small. How do you take 0:13:17.400 --> 0:13:21.160 it to another order of magnitude greater bring in people 0:13:21.200 --> 0:13:22.000 for the first time. 0:13:22.120 --> 0:13:24.240 It's a great question. So Nextdoor has been around for 0:13:24.280 --> 0:13:27.680 fourteen years and as I mentioned, almost ninety five million 0:13:27.760 --> 0:13:30.760 verified neighbors in eleven countries around the world, So yes, 0:13:30.920 --> 0:13:34.160 we have some good scale. Primarily Nextdoor has been known 0:13:34.240 --> 0:13:35.600 for utility, so we. 0:13:35.520 --> 0:13:37.119 Call ourselves a social media. 0:13:36.880 --> 0:13:40.480 Product, but it's really about solving your everyday problems around 0:13:40.480 --> 0:13:42.840 local You have a home, it's one of your most 0:13:42.880 --> 0:13:45.600 important financial assets, and you want to protect that you 0:13:45.640 --> 0:13:47.280 want to make sure that you feel safe, you want 0:13:47.280 --> 0:13:49.080 to make sure that you're happy at home, and so 0:13:49.240 --> 0:13:52.559 Nextdoor primarily has been used around things like I need 0:13:52.559 --> 0:13:54.760 a babysitter, Okay, I need a plumber. I want to 0:13:54.800 --> 0:13:56.960 make sure that my home is kept up to date. 0:13:57.200 --> 0:13:59.640 I want to feel safe in a crisis, whether it's 0:14:00.160 --> 0:14:03.120 natural disaster, whether there's a spate of crime, I've lost 0:14:03.160 --> 0:14:06.200 a pet. These are really important use cases that people 0:14:06.280 --> 0:14:10.120 rely on nextdoor for every single day. But we typically 0:14:10.120 --> 0:14:13.760 thought we talk about weekly active users. Now the other 0:14:13.840 --> 0:14:17.280 social media services that you're talking about, they typically talk. 0:14:17.120 --> 0:14:18.880 About daily active uses. 0:14:19.080 --> 0:14:21.480 So the question for us is what can we do 0:14:21.640 --> 0:14:24.680 to ensure that we are delivering value to our users 0:14:24.960 --> 0:14:29.000 on a daily basis, not just lost pets and service 0:14:29.040 --> 0:14:32.920 providers and times of crisis, which are absolutely indispensable and 0:14:32.960 --> 0:14:36.080 Nextdoor can be a lifeline, but on a daily basis, 0:14:36.280 --> 0:14:38.280 how can we make your local life better. 0:14:38.600 --> 0:14:41.280 That's the part of the story being investment in ad 0:14:41.280 --> 0:14:45.000 technology sort of improving the value against that use best 0:14:45.080 --> 0:14:47.640 ne rev Tellier, next Door CEO and co founder, thank 0:14:47.640 --> 0:14:50.320 you so much. Let's stick with earnings. Retail trading Darling 0:14:50.400 --> 0:14:53.920 Robin Hood extended its growth into the second quarter despite 0:14:53.920 --> 0:14:56.960 a drop off in crypto activity. The company reporting five 0:14:57.000 --> 0:15:00.520 billion dollars in net new deposits as it expands it's 0:15:00.600 --> 0:15:03.920 products pipeline. Robin Hood, co founder and CEO of lad Tenev, 0:15:04.120 --> 0:15:06.840 joined Bloomberg Open interest earlier this morning. Listen to this. 0:15:08.200 --> 0:15:12.160 We shared in the earnings call that July volumes were 0:15:12.360 --> 0:15:16.600 about twenty percent higher than what we reported across June. 0:15:17.040 --> 0:15:21.680 August has continued very much the same one billion in 0:15:21.760 --> 0:15:24.840 net deposits in the first week. About half a billion 0:15:24.880 --> 0:15:28.520 of that came this Monday, and the overnight session for 0:15:28.560 --> 0:15:31.800 twenty four hour market on Sunday night was about three 0:15:32.240 --> 0:15:36.520 x a typical day. So twenty four hour markets have 0:15:36.680 --> 0:15:41.200 just been ripping and customers tend to be buying the dip. 0:15:41.280 --> 0:15:45.400 They're more buyers than sellers, which we think is a 0:15:45.440 --> 0:15:47.760 really good sign for the health of the retail market. 0:15:48.080 --> 0:15:53.360 We saw on Monday morning vlad as the market's kind 0:15:53.360 --> 0:15:56.120 of tanked and there was a lot of fear out there. 0:15:56.440 --> 0:16:00.400 Some of the more traditional, your more traditional competitors have 0:16:00.560 --> 0:16:04.080 problems with logins, and obviously it makes customers very angry, 0:16:04.160 --> 0:16:05.720 especially if they want to get in there and buy 0:16:05.720 --> 0:16:08.280 the dip when it's at five percent and it could 0:16:08.360 --> 0:16:11.800 lose opportunity any minute that goes by. How did your 0:16:11.960 --> 0:16:18.000 technology hold up during during those those shutdowns on other platforms. 0:16:18.960 --> 0:16:21.440 Our technology is strong. You know, We've made a lot 0:16:21.440 --> 0:16:25.080 of investments. We were fortunate not to have any issues 0:16:25.120 --> 0:16:28.920 of a significant nature when all of the competitors were 0:16:28.960 --> 0:16:33.120 down and a lot of customers were actually looking to 0:16:33.200 --> 0:16:36.880 Robinhood and we've we've had challenges in the past, no 0:16:36.960 --> 0:16:39.920 doubt about that, but that's hardened the company, hardened the 0:16:39.920 --> 0:16:45.200 infrastructure and now when we see high volumes, were ready 0:16:45.200 --> 0:16:47.680 for it. So we were happy to see customers moving 0:16:47.680 --> 0:16:52.120 to Robinhood and kind of pointing to us as one 0:16:52.120 --> 0:16:55.840 of the most reliable platforms doing during this recent bout 0:16:55.840 --> 0:16:57.240 of volatility. 0:16:57.920 --> 0:17:00.760 That was robin Hood. See I've lad Now coming up 0:17:00.760 --> 0:17:03.920 from the show, Joe ben Bevitt, CEO of Joby, joins 0:17:04.040 --> 0:17:07.639 us to discuss ev toll expansion in that company's earnings. 0:17:07.640 --> 0:17:29.840 That conversation coming up next. This is Bloomberg Technology time 0:17:29.920 --> 0:17:32.639 for Talking Tech and first stup defense tech startup and 0:17:32.720 --> 0:17:35.520 a reil has raised one point five billion dollars in 0:17:35.560 --> 0:17:40.080 a new funding round, valuing the company at fourteen billion dollars. 0:17:40.119 --> 0:17:43.080 Andreel says it plans to spend hundreds of millions of 0:17:43.119 --> 0:17:47.160 dollars on a new facility to ramp up manufacturing of rockets, 0:17:47.440 --> 0:17:53.119 underwater vehicles, and other autonomous weapons. Plus, Microsoft and Palenteer 0:17:53.440 --> 0:17:56.480 are set to combine their government cloud computing and AI 0:17:56.600 --> 0:17:59.760 tools in an effort to sell software to US defense 0:18:00.040 --> 0:18:03.080 and intelligence agencies. As part of the agreement, Pananteer will 0:18:03.119 --> 0:18:07.360 integrate its products with microshofts Azure cloud services and allows 0:18:07.440 --> 0:18:11.880 open AI implementation into tools that are meant for confidential use. 0:18:12.200 --> 0:18:15.520 And Meta sold ten point five billion dollars of investment 0:18:15.600 --> 0:18:19.120 grade bonds, boosting the company's cash pile as it spends 0:18:19.160 --> 0:18:22.280 heavily on AI. According to Bloomberg Data, the deal is 0:18:22.320 --> 0:18:25.680 the company's largest ever debt sale to date. Meta made 0:18:25.720 --> 0:18:29.080 its bond debut back in twenty twenty two, selling ten 0:18:29.119 --> 0:18:32.720 billion dollars. All right, let's stick with earnings. Joby reported 0:18:32.760 --> 0:18:35.600 after the closing bell on Wednesday, there's some important news 0:18:35.600 --> 0:18:38.280 about Dubai. I'm delighted to bring in Joe ben Bevitt, 0:18:38.400 --> 0:18:41.320 CEO of Joby, and I just want to get right 0:18:41.359 --> 0:18:44.000 to that Dubai project. You and I have spoken so 0:18:44.080 --> 0:18:46.600 many times over the years where I ask you, when 0:18:46.640 --> 0:18:48.879 are we going to see a joby fly and where, 0:18:49.000 --> 0:18:52.840 and it seems like you're closer to answering that absolutely. 0:18:53.200 --> 0:18:56.280 First, thank you so much for inviting me. I'm here 0:18:56.280 --> 0:18:58.919 in our flight test facility in Marina, California. It's amazing 0:18:58.920 --> 0:19:02.159 to be with you on Dubai. We're so excited. We're 0:19:02.200 --> 0:19:07.639 sprinting to the across the line where we've got incredible support, 0:19:07.680 --> 0:19:12.800 a six year exclusive in Dubai to provide Eric taxi service, 0:19:13.240 --> 0:19:16.560 and our target is to launch that service by the 0:19:16.640 --> 0:19:20.040 end of next year. Really really pleased with the progress 0:19:20.080 --> 0:19:23.760 that we're making, and again, thank you for being having 0:19:23.880 --> 0:19:24.560 us today. 0:19:25.880 --> 0:19:29.280 Joe Ben. You know I'm really interested in the business 0:19:29.280 --> 0:19:32.800 model long term. You know that I also take a 0:19:32.920 --> 0:19:37.280 microscope to your financials, your losses and sort of cash 0:19:37.320 --> 0:19:41.000 burner at pace with the streets expectations. Just explain the 0:19:41.040 --> 0:19:44.399 timeline of how that changes and when you start becoming 0:19:44.480 --> 0:19:45.920 meaningfully revenue generating. 0:19:47.280 --> 0:19:48.080 Yeah, so thank you. 0:19:48.080 --> 0:19:53.520 We are executing exactly to plan, and we have a 0:19:54.000 --> 0:19:59.240 very rigorous financial discipline. We are methodically ramping our production. 0:19:59.320 --> 0:20:03.040 We just announced that we had rolled the third aircraft 0:20:03.040 --> 0:20:05.480 off our pilot manufacturing line, and we have the fourth 0:20:05.520 --> 0:20:09.479 and fifth coming along quickly behind. We're going to have 0:20:10.000 --> 0:20:14.080 four aircraft in our flight test program as we're driving certification, 0:20:15.520 --> 0:20:19.480 and we've completed the first three stages of certification with 0:20:19.560 --> 0:20:24.919 the FA and we're now working on the fourth stage 0:20:24.920 --> 0:20:27.800 where we've announced that we're thirty seven percent complete there, 0:20:28.160 --> 0:20:32.080 so as we move into commercialization, we can begin to 0:20:32.640 --> 0:20:38.280 generate meaningful revenues and reduced the cash burn on the company. 0:20:38.600 --> 0:20:41.879 So very very pleased with progress. 0:20:41.680 --> 0:20:48.080 Joe Ben, Is America moving fast enough on EV toll America? 0:20:48.200 --> 0:20:53.080 Absolutely, We're We have incredible bipartisan support in Washington, d C. 0:20:53.600 --> 0:20:58.160 And this last year we were invited to New York 0:20:58.880 --> 0:21:02.200 where we were able to fly our air taxi in 0:21:03.000 --> 0:21:04.680 New York City from the Wall Street Helipad. 0:21:04.680 --> 0:21:07.560 It was, you know, dream come true for me. 0:21:07.880 --> 0:21:10.439 I've been working on this for many, many years and 0:21:10.720 --> 0:21:17.959 seeing the age of clean, quiet, emissions, free propuls aircraft 0:21:18.760 --> 0:21:21.960 being able to fly in a city like New York 0:21:22.040 --> 0:21:25.000 is really exciting. We have an incredible partnership with Delta 0:21:25.000 --> 0:21:28.440 Airlines and we're working to build with the port authority 0:21:28.440 --> 0:21:32.440 to build best in class infrastructure at New York and 0:21:32.480 --> 0:21:34.760 LaGuardia or New York JFK and Loguardia. 0:21:35.480 --> 0:21:37.840 So, Joe Ben, when does that happen? The ability to 0:21:37.880 --> 0:21:40.600 take one of your evy toll from Wall Street to 0:21:40.680 --> 0:21:42.800 an airport in the real. 0:21:42.600 --> 0:21:45.880 World, it's coming very soon. 0:21:46.080 --> 0:21:48.920 Again, we're making great progress with the port authority on 0:21:48.960 --> 0:21:52.320 the permitting of those take off and landing locations connected 0:21:52.560 --> 0:21:54.880 to the Delta hubs. You can get off your Delta 0:21:54.920 --> 0:21:58.159 flight and onto a Jobe flight very seamlessly, and you 0:21:58.200 --> 0:22:03.080 can be in a matter of minutes into Manhattan. So 0:22:03.280 --> 0:22:05.400 we think this is a really exciting opportunity and it's 0:22:05.400 --> 0:22:09.679 coming very very soon, really paced by the speed at 0:22:09.680 --> 0:22:11.920 which we can get that infrastructure built. 0:22:13.240 --> 0:22:15.439 Joe Ben Bevitt CEO, Joe be great to have you 0:22:15.440 --> 0:22:17.760 back here on Bloomberg Technology. Thank you. Now. Coming up 0:22:17.760 --> 0:22:20.720 on the show, we are joined by Andrew Baielecki, the 0:22:20.720 --> 0:22:24.480 co founder and CEO of Klavio, to discuss that company's earnings, 0:22:24.560 --> 0:22:27.760 which were also released after the closing bell on Wednesday. 0:22:28.160 --> 0:22:59.320 This is Bloomberg Technology. Welcome back to Bloombag Technology. Ed 0:22:59.400 --> 0:23:01.639 Ludlow in San Francisco. I want to show you a 0:23:01.720 --> 0:23:04.840 chart that maybe you didn't know you needed. This shows 0:23:05.359 --> 0:23:09.920 normalized performance going back to nineteen ninety nine, with Nvidia 0:23:10.200 --> 0:23:13.880 going in one direction in this session and Monster Beverage Corp. 0:23:13.960 --> 0:23:17.119 Going in the other direction. The point being that Innvidia 0:23:17.200 --> 0:23:22.080 has once again overtaken Monster is the best performing stock 0:23:22.119 --> 0:23:25.560 on the S and P five hundred this century, which 0:23:25.600 --> 0:23:27.879 is an important data point. But I'd also say this 0:23:28.040 --> 0:23:32.720 courtesy of Dan Curtis, our terminal data editor, that think 0:23:32.760 --> 0:23:35.280 about Jensen One, the CEO of Nvidia. He has a 0:23:35.320 --> 0:23:39.119 three point five percent stake in Nvidia. He could buy 0:23:39.680 --> 0:23:43.159 all of Monster Beverage Corp. And every single share and 0:23:43.200 --> 0:23:45.760 still have enough money left over to go out and 0:23:45.760 --> 0:23:49.280 buy another chip company, or even if he wanted Lululemon. 0:23:49.680 --> 0:23:52.240 Some size and scope of the scale of Nvidia, not 0:23:52.359 --> 0:23:56.160