Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: From the heart of.
Speaker 3: Where Innovation, money and power. Collie in Silicon Valley, Nbon.
Speaker 4: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 5: Live from New York. This is Bloomberg Technology coming up.
Speaker 5: All eyes on enveer As, a three trillion dollar chip maker,
Speaker 5: is set to report earnings after the closing Bell plus
Speaker 5: Comcast it plans to spin off some of its cable
Speaker 5: TV channels. We talk future strategy and the CEO of
Speaker 5: Qualcomm joins us as a company details growth of twenty
Speaker 5: two billion dollars in annual revenue over the next five years.
Speaker 5: But first you will know Qualcomm as the world's biggest
Speaker 5: seller of smartphone processes. But the company is pushing into
Speaker 5: new markets and generating potentially up to twenty two billion
Speaker 5: dollars in additional annual revenue by fiscal twenty twenty nine. Look,
Speaker 5: eight billion dollars a year is going to be coming
Speaker 5: from an expansion into automotive chips. Fourteen billion dollars they
Speaker 5: say will come from the Internet of Things. Qullcom CEO
Speaker 5: Christiana Amon was detailing that very vision yesterday and what
Speaker 5: your total addressable market now up to nine hundred million dollars.
Speaker 5: It is great to have you here after that investor meeting,
Speaker 5: you're looking out to twenty thirty. What gives you that confidence.
Speaker 4: Look, we have been first of all, great to be
Speaker 4: here talking to you, but we have been on this
Speaker 4: trajectory since twenty twenty one when we had our last
Speaker 4: investor day and we outlined the plans to grow the
Speaker 4: company to other markets.
Speaker 2: We realize that the.
Speaker 4: Technology we produced for mobile could be very disruptive and
Speaker 4: we could build actually a leading position where we did
Speaker 4: in automotive, what we did in PCs, and we thought
Speaker 4: we'll be the right thing to tell investors as we
Speaker 4: look in the next five years how we're going to
Speaker 4: diversify the company. When you look at the company right now,
Speaker 4: most of our revenues mobile Mobile is a great market,
Speaker 4: but it doesn't grow as much until we have an
Speaker 4: AI of grade cycle. However, those other markets that we're
Speaker 4: going it will drive higher multiple. So as those revenues
Speaker 4: from non mobile become a bigger percentage of Qualcom, we
Speaker 4: have an opportunity to actually see a multiple expansion. So
Speaker 4: we want to outline to investors our trajectory and what's
Speaker 4: exciting is really where we are right now. We're very
Speaker 4: happy with the results of the company in the near term.
Speaker 4: We show on the last earnings called we're growing in
Speaker 4: all markets, including handsets, and we put out in five
Speaker 4: years we're going to have twenty two billion dollars of
Speaker 4: non handset revenue.
Speaker 2: But bearing any sicklic.
Speaker 4: Calid on the market, we'll expect to continue to grow
Speaker 4: annually into that into those.
Speaker 5: Targets, bearing any sickl catesy, can you just talk through,
Speaker 5: like what are the downside risks to automotive demands? Two
Speaker 5: people actually upgrading to new and refresh Android phones, which
Speaker 5: are going to remain probably.
Speaker 4: Yeah, what I mentioned about cyclicality, I think this in
Speaker 4: my conductor industry, we have seen on the first the
Speaker 4: past few years, we had a bunch of different cycles,
Speaker 4: different markets, inventory corrections, we have capacity constraints. We're not
Speaker 4: assuming that going forward, but some of that you know
Speaker 4: could happen. But when you look off the normalization of
Speaker 4: the market we see right now, if that continues, we
Speaker 4: feel very good about the ability to grow annually. To
Speaker 4: your question, is cars is one that we're incredibly excited
Speaker 4: because people are now buying new cars because of the
Speaker 4: computational cupabilities and did those big screens in the digital
Speaker 4: cupabilities of the car. And I think that's what actually
Speaker 4: creating demand for our technology.
Speaker 5: Going in before we get to cars. The Internet of
Speaker 5: things is really going to be something that we've been
Speaker 5: talking about almost for a decade the mobile or Congress
Speaker 5: and remember everyone's the zuberan about Internet of things and
Speaker 5: then reality never quite gets there. And that's where previous
Speaker 5: times you've made targets and perhaps have had to fall
Speaker 5: short because the ecosystem doesn't build. What makes you sure
Speaker 5: it will get to that fourteen billion this time?
Speaker 4: Like, we're very confident, but I I would like to
Speaker 4: break that down for you. Yeah, So first PCs, because
Speaker 4: actually what I need to tell you is we talk
Speaker 4: about Internet of things, but the Qualcom Internet of Things
Speaker 4: revenue stream, there's a bunch of things in there. We
Speaker 4: have PCs, we have virtual reality, mixed reality devices, we
Speaker 4: have industrial we have networking and personal devices like wearables
Speaker 4: and watches. That's our Internet of things bucket. So we
Speaker 4: gave a target of four billion dollars in PCIX. If
Speaker 4: you think what we're doing right now Snapdragon X series
Speaker 4: is the fastest processor is faster than Intel, faster than MD.
Speaker 4: We come in and within the industry as a new
Speaker 4: player with a leading platform, the only platform they could
Speaker 4: run Microsoft Copilot plus. If you look at this of
Speaker 4: the service market, the TAM or the SAM that we're
Speaker 4: I had an investigate of PCs in twenty twenty nine,
Speaker 4: it's thirty five billion.
Speaker 2: We say we're going to do four.
Speaker 4: It's very achievable target, especially when you think about we
Speaker 4: have the best platform the market today.
Speaker 5: But everyone does indeed love that Silicon our om Bloomberg
Speaker 5: Intelligence saying you're in s Silicon and the AIPC is great,
Speaker 5: but there's been so much cynicism around the adoption of
Speaker 5: on based PCs. What is stopping that?
Speaker 4: We actually we see a little bit different. We launched
Speaker 4: this platform in May. We have twenty designs right now.
Speaker 4: From May to today, we increase the design traction by
Speaker 4: two point five times. We have fifty eight now platforms
Speaker 4: across del HP, Lenovo, Sands on the Asia suits and
Speaker 4: people buying them and these sales are exceeding our expectations.
Speaker 4: So that's why we feel confident. And if you think
Speaker 4: about the target, were putting four billion in the thirty
Speaker 4: five billion SAM is not that high. The other one
Speaker 4: is industrial. And you asked me about IoT. One thing
Speaker 4: Caroline did change the IoT in industrial is AI a
Speaker 4: d edge.
Speaker 2: The ability to run AI a D edge.
Speaker 4: We can run multi billion parameter model into a device
Speaker 4: at the edge. That changes the cost equation for a
Speaker 4: lot of companies that I actually think that it's going
Speaker 4: to be cheaper than doing in the cloud, or they
Speaker 4: have specific needs. That inflection point is what gives us
Speaker 4: confidence we're going to get four billion in industrial by
Speaker 4: twenty twenty nine. And the other two billion we provided
Speaker 4: was for augmented reality and the ray band Meta smart glass.
Speaker 4: Everybody talks about it is probably the favorite Christmas gift
Speaker 4: this season.
Speaker 5: Let's talk therefre about an inflection point when you go
Speaker 5: back to what had been your bread and butter, which
Speaker 5: is smartphones and cells. Are people upgrading? Are they going
Speaker 5: to upgrade, particularly on the Android devices that you sit with,
Speaker 5: because Apple is course is going to be pulling back
Speaker 5: for the next few years.
Speaker 4: Look, Android is the largest global market for hintsts, and
Speaker 4: we have very focused on premion teer Android. What we
Speaker 4: see in the market that grows very you know, phones
Speaker 4: grow with GDP. Right, it's flat to single dishit growth
Speaker 4: because everybody has a phone. However, what we have seen
Speaker 4: is at the premium teer they're growing significantly. We see
Speaker 4: a mix change when people buy their next phone, they
Speaker 4: want a better phone, and that that actually allow us
Speaker 4: to be growing in many.
Speaker 2: Cases like double digit on.
Speaker 4: A market doesn't grow by expanding content, So what we
Speaker 4: expect is that is the trend as we people buy
Speaker 4: a premium smartphone with more AI and eventually as the
Speaker 4: AI use cases start to be as big as apps,
Speaker 4: we're going to see an AI driven upgrade.
Speaker 5: We are sitting with the call com Cio Cristiano, a'man
Speaker 5: for worldwide radio and TV audiences. The upgrade cycle grows
Speaker 5: the GDP. You're saying, China's GDP and looking so great.
Speaker 5: You have exposure to that economy. What does it feel
Speaker 5: like by now?
Speaker 4: Look, our China business is business that we're very happy
Speaker 4: with it. As geopolitics evolve, actually our business with China expended,
Speaker 4: especially because as we become relevant in automotive and industrial
Speaker 4: beyond phones, we have Chinese customers. I think, at the
Speaker 4: end of the day, regardless of GDP growth, China is
Speaker 4: a big market. If you are, as a my conductor company,
Speaker 4: that you have a leading technology that cannot be replicated
Speaker 4: by a domestic product, you're going to have a big
Speaker 4: business in China.
Speaker 2: And that's what we have.
Speaker 5: They're fighting to make things domestically because of the new
Speaker 5: administration and indeed the current administration still pushing back on
Speaker 5: China that you don't have any pause, any concern about
Speaker 5: taris rampop for example.
Speaker 4: Look, you should think about our business. We are exporting
Speaker 4: semi conductors when the right direction of trade for the
Speaker 4: United States, especially when you think about trade balance so
Speaker 4: so in and if we have a leading technology, we
Speaker 4: expect that China will be interesting continue to buy our chips,
Speaker 4: So we're not concerned about that.
Speaker 5: You know, have any procurement issues, you don't import anything.
Speaker 5: You're not having to.
Speaker 2: Stop pile now.
Speaker 4: We I think we have been We're fabulous company and
Speaker 4: we have been a big exporter of chips into China.
Speaker 5: You've got an amazing bird's eye perspective of the technological
Speaker 5: race that we like to talk of between US and China.
Speaker 5: For example, you've got an array of large language models
Speaker 5: within your snap Dragon mobile system and platform. Some of
Speaker 5: those Chinese large language models, how do they perform compared
Speaker 5: to the US one.
Speaker 4: Look, we can talk about this all day, but I'm
Speaker 4: going to try to summarize a few things.
Speaker 2: There's a very.
Speaker 4: Large number of models becoming available, and they're very specialized.
Speaker 4: I think we're heading towards AI as being a new
Speaker 4: computing and you have models specialized in voice, major specialized
Speaker 4: in imaging, like large visual models, et cetera. What we're
Speaker 4: starting to see is a lot of those models are
Speaker 4: becoming regionalized, especially when you think about text and converse
Speaker 4: or conversation. As the computer starts to speak the language
Speaker 4: of humans, every reason has a unique aspect that is
Speaker 4: driving a lot of regional models. We expect the future
Speaker 4: is going to be like that. China's going to have
Speaker 4: their models, you know, Europe is going to have their models.
Speaker 4: We're going to have our models, and they're going to
Speaker 4: be model specialized for different things. And we're just the
Speaker 4: beginning of this exciting new transition.
Speaker 5: You could talk about it all day. The thing that
Speaker 5: the markets that the media have wanted you to talk
Speaker 5: about all day is whether you'll be making any acquisitions
Speaker 5: and whether you will potentially making any acquisitions of Intel
Speaker 5: parts of the businesses. Your CFO outline that, look, you're
Speaker 5: actually gonna be giving money back to investors is M
Speaker 5: and A therefore not on the agenda.
Speaker 4: Look, we have always been looking for opportunities. A lot
Speaker 4: of the Quaker M and A framework with the outline
Speaker 4: has been apportunistic or been very target to.
Speaker 2: Accelerate our plans.
Speaker 4: We has showed that with the M and A that
Speaker 4: we've done for Auto, the M and A that we've
Speaker 4: done to enter the PC space. So you're probably going
Speaker 4: to continue to see qualk on doing that right now.
Speaker 4: At this point, we have not identified any large.
Speaker 2: Acquisition that.
Speaker 4: Is necessary for us to execute on this twenty two billion,
Speaker 4: and we're super focused on executing on the twenty two
Speaker 4: billion in the next five years.
Speaker 5: So give us the confidence. Give the investor base that's
Speaker 5: currently seeing perhaps your share price off by six cent
Speaker 5: a moment, give them the confidence that this transition away
Speaker 5: from Apple and focusing on an Android but focusing in
Speaker 5: on the Internet of things opportunity that you articulated the autos,
Speaker 5: You're going to get that smoothly and with clarity on
Speaker 5: time frame.
Speaker 4: Yeah, Look the way I see it, and I think
Speaker 4: that's probably you know, I can't really you know, talk
Speaker 4: about what's happening with the stock, but I think there
Speaker 4: may be some confusion. Our plan in the investor day
Speaker 4: is to tell investor there are strategies working.
Speaker 2: We don't need a new strategy. It is working.
Speaker 4: We had executed on what we said we're going to
Speaker 4: do in those new markets like Alto, for example, we
Speaker 4: have been have five consecutive quarters of record growth, and
Speaker 4: we would grow even when the market doesn't grow because
Speaker 4: we're gaining share. We had deliver on our entrance on
Speaker 4: the PC and a well positioned to ramp, and we
Speaker 4: told investors how this is going to play out with
Speaker 4: the other markets. We had said since the beginning that
Speaker 4: our planning assumptions assume that Apple is coming off the model.
Speaker 4: We had said our contract implies that we have twenty
Speaker 4: percent share in twenty six Would that be the case,
Speaker 4: I don't know.
Speaker 2: I think we have had two renewals of Apple, but.
Speaker 4: We have to make a planning assumption that Apple's coming.
Speaker 2: Off the model.
Speaker 4: Even with that, we are well positioned to continue growing
Speaker 4: to the period and get to a point in twenty
Speaker 4: twenty nine that we have twenty two.
Speaker 2: Billion of revenue non mobile, and when we.
Speaker 4: Get to the end of the decade, we have a
Speaker 4: potential about but fifty to fifty mobiles about fifty percent
Speaker 4: fifty percent.
Speaker 2: Of the revenue from growth market.
Speaker 4: So I don't know what the anxiety is, but I
Speaker 4: think we feel confident about the plan and we'll continue
Speaker 4: to execute on that plank.
Speaker 5: Let's get Hannah. Analyst Christopher Roland saying, we continue to
Speaker 5: have confidence in CEO Amount's ability to move Quillcom beyond
Speaker 5: modem and cellular IP company. We appreciate you, thank you
Speaker 5: for being here. Quil Come CEO Cristiano Aman. Now as
Speaker 5: a quick checkout on this particular chart of a chip
Speaker 5: company that you're not looking at every day. Semiconductive Manufacturing
Speaker 5: International Shares SMICK, as it's known they've more than doubled
Speaker 5: over the past two months, even amid the risks tied
Speaker 5: to competition to geopolitical tensions in China. The stock is
Speaker 5: up one hundred and twenty percent from September, trancing global
Speaker 5: sector names including nvidiomc As you see China autperforming particularly
Speaker 5: on land in Beijing trading, I mean, while speaking of Nvidia,
Speaker 5: look all eyes on the company reporting earnings after the
Speaker 5: closing bell, we'll discuss what to expect, particularly with Blackwell.
Speaker 6: This is Blue meg Technology, oh in vidious quarterly results
Speaker 6: and the forecast they're out after the closing bell Today.
Speaker 5: Analysts will be on the lookout see whether the world's
Speaker 5: most valuable company can sustain what has been a remarkable run,
Speaker 5: fueled by spending, of course, on AI hardware. Relumeg Intelligence
Speaker 5: analyst Kundren Savani joins us, now everyone wants clarity on
Speaker 5: the supply side of Blackwell and demand for the Hopper too.
Speaker 7: Yeah, I mean, look, second half, we have seen the
Speaker 7: demand for the Hopper expand not just said the top
Speaker 7: large cloud service providers and hyperscalers, but beyond them to
Speaker 7: the sow end, which now we expect them to be
Speaker 7: low double digits this fiscal year with the enterprise, with
Speaker 7: the tier two cloud service providers. So we don't see
Speaker 7: any limiting in terms of demand for Hopper, and everyone's
Speaker 7: anticipatingly waiting for the Blackwell ramp, which we think will
Speaker 7: see major portion of it next year.
Speaker 5: We allls seem to focus on revenue. It's going to
Speaker 5: double for the full year. We anticipate it's going to
Speaker 5: be up eighty percent for third quarter, up a little
Speaker 5: bit less than that for the fourth quarter is the expectation.
Speaker 5: But what about margins, what about profitability conngin?
Speaker 7: Yeah, I mean, look, we have seen the peak of
Speaker 7: the margins there behind us. Going into four Q, we
Speaker 7: expected to not as low as some people are concerned.
Speaker 7: We expected to still stay above the seventy three percent mark.
Speaker 7: But going into twenty twenty five with Blackwell as a
Speaker 7: new product ramping, we expected to stay at the same levels.
Speaker 7: We are also seeing the cost of the new products increase,
Speaker 7: but their ability to charge equivalently more pricing is not
Speaker 7: going there because there's a lot of pricing pressure. These
Speaker 7: are very expensive GPUs.
Speaker 5: May sure, and it's a very expensive stop bluing bag intelligence.
Speaker 5: As of Bonnie, we thank you. Let's turn about that
Speaker 5: valuation now with Kim Forest, founder and CEO Booker Capital Partners. Kim,
Speaker 5: we've had almost two hundred percent run up in in
Speaker 5: video over the last year, and indeed that's on top
Speaker 5: of a tripling the previous year. We have a massive valuation.
Speaker 5: Is it too high?
Speaker 8: Well, if you get to it today, maybe I don't know.
Speaker 8: We'll tell you at the end.
Speaker 3: Of the day.
Speaker 8: The problem that I see, and let me just say this,
Speaker 8: I'm a believer in AI in general. I'm a little
Speaker 8: bit skeptical of generative AI. I think it has a
Speaker 8: lot of issues that just can't be solved through the
Speaker 8: brute force throw more chips at it. But that being said, I'm.
Speaker 3: Rooting for AI. Now.
Speaker 8: The problem with evaluation on in Nvidio is you laid
Speaker 8: it out. It's already had a triple, a double, you
Speaker 8: know everything. It's as if it's a quarter being tossed
Speaker 8: and coming up heads heads heads. There is a day
Speaker 8: it's going to come up tails and momentum investors are
Speaker 8: going to freak out. And with every earnings call now
Speaker 8: that we have, that day gets closer. Is it today?
Speaker 3: I don't think so, But I don't know.
Speaker 8: And that's really my problem with this, that it's a
Speaker 8: stock driven by momentum.
Speaker 5: To be fair, they have freaked out before after earnings,
Speaker 5: even when they meet and beat. But the forecast isn't
Speaker 5: living up to expectations. So what is it that you
Speaker 5: therefore need to hear from Jensen to give you the confidence.
Speaker 5: It feels like you're pushing against the scaling laws that
Speaker 5: actually he continues to think thrive at.
Speaker 3: The moment exactly.
Speaker 8: Well, there's a couple of things that concern me. There
Speaker 8: is a handful of companies that are willing to spend
Speaker 8: unbelievable amounts of money on this. Now, if one of
Speaker 8: them blinks, well the other ones kind of cool down
Speaker 8: and you stop shoveling money to the end of this problem.
Speaker 8: That's the one thing. So who are we talking about? Apple, Meta,
Speaker 8: and Microsoft are the big ones, right, maybe Amazon as well,
Speaker 8: but those are certainly the companies that have the cash
Speaker 8: flow that.
Speaker 3: They don't even have to question it.
Speaker 8: They're going to spend, spend, spend, But you know, that's
Speaker 8: a very narrow market if you're going to think of
Speaker 8: it that way. So you know, I'm just a cautious
Speaker 8: investor and everything has gone right, so that demand is key,
Speaker 8: and blackweil is a little bit of a concern. Yes,
Speaker 8: it's not really shipping yet. They'll probably modify the problem
Speaker 8: that's causing overheating. You know, when these things get over
Speaker 8: into the world, they're used differently than they've been tested for.
Speaker 8: We've seen this many times in other semiconductor cycles. But
Speaker 8: it's all a concern for you know the thing that
Speaker 8: leads the market now it you know, it drives all
Speaker 8: the markets. It's such a high component of the S
Speaker 8: and P five hundred game.
Speaker 5: It's a macro event. Do you buy all wetness?
Speaker 8: If I buy on weakness, I'm going to look at
Speaker 8: it very hard on weakness because again I still think,
Speaker 8: given what the other makers of chips and even the
Speaker 8: people who are dreaming of being competitors of Nvidia, and
Speaker 8: Vidia has a nice long runway to have people not
Speaker 8: catch up to them. So there's some safety in there,
Speaker 8: but valuation is steep at this point.
Speaker 5: Proceed. We're caution O Capital Partners, CIO, Kim Forest. It's
Speaker 5: time now for talking tech them First Up Global Foundries
Speaker 5: has been awarded one point five billion dollars by the
Speaker 5: Buyer Administration's chips at The grant will support the chip
Speaker 5: makers expansion of two factories and one new plant in
Speaker 5: the United States and is estimated to create a thousand
Speaker 5: production jobs and zeploint nine thousand construction workers plus salesforce.
Speaker 5: Plans to cut workers from its recently acquired data management
Speaker 5: startup own. The company says some roles will not be required.
Speaker 5: Quote post harmonization and set an end date of January
Speaker 5: thirty first for those employees, while others will remain on
Speaker 5: a short term basis if needed for the transition and
Speaker 5: shares of MicroStrategy rising today, catapulting the market value to
Speaker 5: more than one hundred billion dollars. This is the company
Speaker 5: announced plans to increase the amount of convertible senior debt
Speaker 5: it plans to sell in an effort to buy more bitcoin.
Speaker 5: Now it's about forty billion dollars worth coming up. We're
Speaker 5: joined by Strike Fanner and CEO Jack Mallers as traders
Speaker 5: and making bullsh bets on bitcoin alongside Michael Sailor clearly
Speaker 5: over at MicroStrategy from New York. This is blom Meg Technology.
Speaker 5: Welcome back to bloue Meg Technology. Look what else is
Speaker 5: moving crypto? But actually there has still been that risk
Speaker 5: on sentiment in bitcoin that drives us up another one
Speaker 5: and a half percent. We're at ninety three six hundred
Speaker 5: and sixty one and this as it's more about the
Speaker 5: feel good factor around future policy in the United States
Speaker 5: and indeed some heavy buyers continuing for their balance sheet.
Speaker 5: Let's talk about it in the industry at large, because
Speaker 5: of course it's spent a lot in terms of lobbying
Speaker 5: on candidates across party lines during the twenty twenty four election,
Speaker 5: and those efforts clearly seem to have paid off. Stand
Speaker 5: with Crypto, a group that tracks those results, say two
Speaker 5: hundred and seventy five pro crypto candidates were elected to
Speaker 5: the US House, twenty in the Senate. Now they're looking
Speaker 5: at how those lawmakers will influence the industry, including the
Speaker 5: policy of President elect Trump. Here to detail what the
Speaker 5: political effects are, what just buying is like at the moment.
Speaker 5: Strike CEO Jack Manners, who actually has a pretty close
Speaker 5: relationship with one of the senators who has been long
Speaker 5: with the Red Eyes. Yes, Heir Loomis, And I'm interested
Speaker 5: in ultimately what you've seen in terms of trading on
Speaker 5: the platform since the election.
Speaker 9: The day post election, the Wednesday post election, our business doubled.
Speaker 9: We saw one hundred percent growth in bitcoin purchases. Our
Speaker 9: customers are predominant purchasing bitcoin, and over ninety percent since
Speaker 9: election are actually taking the bitcoin off the platform and
Speaker 9: holding it in their own custody. So we're not seeing
Speaker 9: active speculative trading on gambling on this short term price.
Speaker 9: We're seeing long term accumulation on our platform, and our
Speaker 9: customers are excited. We serve bitcoiners, and bitcoiners are excited
Speaker 9: right now.
Speaker 5: Okay, so you're maybe supporting those that are focused purely
Speaker 5: on the ecosystem, but people are going elsewhere to trade,
Speaker 5: whether it's gambling or not. We now got options trading
Speaker 5: on the bitcoin spot ETFs. What do you think of that?
Speaker 5: What do you make of this transition from well DeFi
Speaker 5: and crypto into more traditional finance.
Speaker 9: Well, the last time I was on this show, I
Speaker 9: told you and ED, which ed congrats.
Speaker 5: By the way, I'm thinking of you.
Speaker 9: I told you, guys, I thought bitcoin was the only
Speaker 9: money in crypto. I wasn't sold on any of the
Speaker 9: other cryptocurrencies, and that my business, we're predicated on Bitcoin
Speaker 9: is money, and we sell our customers financial services. So
Speaker 9: if you're a customer of mine, you want bitcoin financial services.
Speaker 9: You want to buy it, you want to store it,
Speaker 9: you want to move it, you want to pay your
Speaker 9: bills with it, you maybe want to loan against it.
Speaker 9: These are the type of products that we want to
Speaker 9: serve our customers in the future. We do not think
Speaker 9: of ourselves as a speculative exchange. So that's my customer
Speaker 9: base options ETFs MSTR. All of these things are pro
Speaker 9: liquidity for bitcoin. What you want in a money or
Speaker 9: a store of value is you want it to be syllable.
Speaker 9: You want it to be liquid at any point twenty
Speaker 9: four to seven, three sixty five globally.
Speaker 2: You want to be able to sell it.
Speaker 9: And so all of this is pro liquidity, which enhances
Speaker 9: the profile for bitcoin to be a better asset for
Speaker 9: a government and corporation and individual. So everything is bullish
Speaker 9: for bitcoin. That's what I always say. So another day,
Speaker 9: more bullish activity for the asset.
Speaker 5: Okay, convince me of why for this liquidity, for this
Speaker 5: vision for the future of money, you need a strategic
Speaker 5: Bitcoin reserve because I know that's what you've been speak
Speaker 5: with Youll Loomus about. So we're having infrastructure issues, not
Speaker 5: your fault.
Speaker 2: Not your fault here, you know.
Speaker 9: I think the unique positioning on the Bitcoin Strategic Preserve,
Speaker 9: I think if this happens, this will be one of
Speaker 9: the most important economic announcements in US history. I think
Speaker 9: it'd be on par with nineteen seventy one and Nixon. However,
Speaker 9: what I think is not being talked about enough is
Speaker 9: it's positive caroline.
Speaker 5: Because you'd have to go out there and buy in
Speaker 5: the market. But will it actually happen. No?
Speaker 2: My meaning is this.
Speaker 9: In nineteen thirty three, the US had a really big
Speaker 9: economic announcement. What was it, We're taking all your gold.
Speaker 9: In nineteen seventy one, the US had a really big
Speaker 9: economic announcement. What was it, We're divorcing ourselves from the
Speaker 9: gold standard so we can print money. In two thousand
Speaker 9: and eight, the US had a really big economic announcement.
Speaker 2: What was it?
Speaker 9: It was, we're bailing out all the big banks that misbehaved.
Speaker 9: In twenty twenty five, if the US has a really
Speaker 9: big economic announcement, what is it, it's we're pro technology,
Speaker 9: We're pro innovation.
Speaker 3: What principles in morals?
Speaker 2: In ethical alignment?
Speaker 9: Does bitcoin have equal rights, equal opportunity and open network?
Speaker 9: These are American ideals, American values. This isn't as that
Speaker 9: was accessible to the people fifteen years ago, that the
Speaker 9: people own. Governments only own two three four percent of
Speaker 9: this asset. This asset is held by the people. It
Speaker 9: acts in the best interest of the public. It's pro jobs,
Speaker 9: it's pro energy, it's pro industry, it's pro growth, and
Speaker 9: does anyone else have a plan to get us out
Speaker 9: of debt. We were going to start a lemonade stand
Speaker 9: out here in Times Square. No, how about the best
Speaker 9: performing asset in the history of mankind.
Speaker 2: We lean into it. We buy it.
Speaker 9: Coinbases in an American company, strikes in an American company,
Speaker 9: crackings an American company. Tether sells the US dollar. Let's
Speaker 9: support these businesses. Let's support this industry.
Speaker 5: The market cap is less than in video for the
Speaker 5: entire crypto ecosystem. When does that become bigger?
Speaker 2: I think when people buy it. Listen.
Speaker 9: I think that ego gets in the way of many people.
Speaker 9: People think they're late to bitcoin. I don't understand that, right.
Speaker 9: I think that late according to who oh, because you're
Speaker 9: comparing yourself to Michael Saylor, you're comparing yourself to your
Speaker 9: college roommate, you're comparing yourself.
Speaker 3: To your coworker.
Speaker 9: Over the last fifteen years, the best thing you could
Speaker 9: have done is buy bitcoin. And I think that's going
Speaker 9: to be true for the next fifteen hundred years. And
Speaker 9: so as a country, I think we have a choice.
Speaker 9: I think everyone else around the world is understanding we
Speaker 9: are pro growth, pro business, pro bitcoin.
Speaker 2: As this new.
Speaker 9: Administration takes office and we have to make a decision.
Speaker 9: I think the worst thing we can do is not
Speaker 9: own enough, and actually to de risk this, we should
Speaker 9: buy some and push these American ideals in technology and
Speaker 9: innovation and growth through the best performing asset and technology
Speaker 9: in mankind.
Speaker 5: See if she can get that through Congress. Strike CEO
Speaker 5: check malis great to have you in the house. Thank
Speaker 5: you so much. Coming up, SpaceX it achieves new feats
Speaker 5: during six major test launch of the Starship system. We'll
Speaker 5: have the details next. This is Broomberg. Let's just take
Speaker 5: a look at a new trend in Silicon Valley tender offers.
Speaker 5: Until recently, there was a bit of a stigma if
Speaker 5: a venture firms sold a lot of shares in a
Speaker 5: portfolio company before an IPO, it was seen kind of
Speaker 5: as a sign that the firm didn't believe in the
Speaker 5: startups continued growth. But now that stigma is just going away.
Speaker 5: Let's discuss Spoomberg's Katie Roof's piece. You wrote all about
Speaker 5: this in Today's Tech Daily, and it does feel every
Speaker 5: other day we're getting another announcement of a tender offer.
Speaker 5: You did data bricks, You've had SpaceX. But it's not
Speaker 5: a negative.
Speaker 10: That's right, and so you know, secondaries have always been
Speaker 10: a thing. But what's different is the stigma's gone. You know,
Speaker 10: as companies take ten to fifteen years to IPO, it's
Speaker 10: no longer seen as you're giving up. It's just a
Speaker 10: sign that you need liquidity for your LPs where you often,
Speaker 10: you know, if you're a venture firm, you often have
Speaker 10: to return cash back within ten years.
Speaker 5: Talk to us about how it gets done. How formalized
Speaker 5: is the secondary market becoming.
Speaker 10: Sure, there's different types of transactions. There's the tender offers,
Speaker 10: which are usually you know, they're sanctioned by the company.
Speaker 10: They're large transactions where often the employees will also sell shares.
Speaker 10: But there's also a lot of one off trades and
Speaker 10: there's a lot of brokers out there, a lot of
Speaker 10: different intermediaries helping you know, to transact between buyers and
Speaker 10: sellers on these private trades.
Speaker 5: Does this and not putting off yet further IPOs.
Speaker 10: In some cases it does because part of the pressure
Speaker 10: for IPOs is often because employees or insiders want to
Speaker 10: get liquidity, they want to be able to buy that house.
Speaker 8: Those employees that have been.
Speaker 10: There forever, and so that pressure goes away when those
Speaker 10: employees and those those insiders are able to get liquidity,
Speaker 10: and so yes, it does absolutely contribute to a delay
Speaker 10: in IPOs new bugs.
Speaker 5: Katie, We thank you, and we were just discussing with
Speaker 5: Katie SpaceX tender that we've been hearing about. Well, of course,
Speaker 5: it's actually just marked another successful launch with its Starship
Speaker 5: Rocket in its sixth major test, that says Elon Musk
Speaker 5: and President Elect Trump watched from Afar. Here's what one
Speaker 5: SpaceX investor had to say about the company's triumphs.
Speaker 11: You don't want to be in SpaceX's way, right if
Speaker 11: you're building there's a lot of benefits to SpaceX is
Speaker 11: building the railway, and there's a lot of benefit that
Speaker 11: now new opportunities become available that weren't available before. But
Speaker 11: you don't really want to be building something that's on
Speaker 11: their roadmap.
Speaker 3: They are the apex player.
Speaker 5: Let's get more from expertise in the spacefield. Lori Garva,
Speaker 5: operating advisor at Bessemervenure Partners, former NASA Deputy administrator joining us.
Speaker 5: Now you've got a book out and he's worked alongside
Speaker 5: the likes of Elon Musk. He thinks very highly of you,
Speaker 5: and I'm interested in about what you made of these
Speaker 5: new feats, in particular, what this sixth test launch really
Speaker 5: showed us because they didn't get to catch once again
Speaker 5: with those so called chopsticks.
Speaker 1: Yeah, this test was a mix.
Speaker 12: However, I would finally put it in the win column.
Speaker 1: We aren't used to seeing.
Speaker 12: A company or even a government agency push technology like
Speaker 12: SpaceX is doing on this flight. Although it was disappointing
Speaker 12: not to get the catch, we knew that was a possibility.
Speaker 12: They're making good calls, they're making safe calls. The Starship itself,
Speaker 12: which is actually the more complex and important vehicle, went
Speaker 12: on to succeed beyond anyone's imagination. They are taking out
Speaker 12: weight of the vehicle by eliminating tiles just to test
Speaker 12: the boundaries, to make sure that they are getting the
Speaker 12: most out of every second of the vehicle, and seeing
Speaker 12: that stage land the second stage into the ocean in
Speaker 12: such a controlled way.
Speaker 1: That's the goal.
Speaker 12: The goal is continuing to march on to a fully
Speaker 12: reasonable two stage vehicle, and they made a lot of
Speaker 12: progress also with the engine lighting on the second vehicle
Speaker 12: on the second stage.
Speaker 1: So a mix, but I'd put it in the one column.
Speaker 5: Okay, So the fact that it survived reentry through US atmosphere,
Speaker 5: the fact that we saw reigniting of one of the
Speaker 5: raptor engines steering, that suddenly becomes possible. Just pitch us forward.
Speaker 5: What next is achievable? What ultimately how quickly can we
Speaker 5: suddenly see trips to Mars on this kind of a vehicle.
Speaker 1: Well, I think the key is that the speed over the.
Speaker 12: Next couple of years, if we are seeing the cadence
Speaker 12: increase as we did with their Falcon nine vehicle where
Speaker 12: they're launching more than one hundred a year, Gwen Chatwell
Speaker 12: recently said they'll be at the four hundred mark and
Speaker 12: four years with this vehicle. I mean, if they can
Speaker 12: make that, you then will be having on orbit fuel transfers.
Speaker 12: That's the key to going beyond lower the orbit. Whether
Speaker 12: this administration is still going to want to fulfill a
Speaker 12: lunar ambition, we don't know, but definitely we're here hearing
Speaker 12: the President elect and Elon talk about Mars trips and
Speaker 12: those are refueling in lower thorbit, a technology that isn't.
Speaker 1: Proven, but isn't that complex.
Speaker 12: You could see missions to mars as they're talking about
Speaker 12: in the four or five year timeframe.
Speaker 1: I doubt they would put people on them, but.
Speaker 12: That is indeed what the president has at least talked
Speaker 12: about doing within his term.
Speaker 5: Laurie, Yeah, we were just seeing pictures of President elect
Speaker 5: Trump there alongside elaw Musk. You've been there. You were
Speaker 5: in that transition team, the NASA transition team with President
Speaker 5: elect Obama at the time. How likely are we to
Speaker 5: see other companies thrive in this new era where SpaceX
Speaker 5: is so integral and so close to the next administration.
Speaker 12: Well, it is a really strange trajectory in the sense
Speaker 12: that the Obama transition team that I led back in
Speaker 12: two thousand and eight.
Speaker 1: In two thousand and nine set us on.
Speaker 12: A course for a more competitive arrangement to have our
Speaker 12: space transportation to and from lower orbit. That gave the
Speaker 12: opening to SpaceX that they have absolutely run through.
Speaker 1: And now have dominated the market.
Speaker 12: You couldn't have guessed back then how much farther ahead
Speaker 12: they would.
Speaker 1: Be than everyone else.
Speaker 12: They hadn't even been able to get contracts through the
Speaker 12: military side, and now they're the dominant player. So at
Speaker 12: this point, I think any transition team once they're there.
Speaker 12: If the Trump folks even go this route, is to
Speaker 12: put in policies that will allow for more competition. The
Speaker 12: goal is never a monopoly. In fact, we did what
Speaker 12: we did because there was a monopoly, the United Launch Alliance,
Speaker 12: and it was much more expensive to the government. So
Speaker 12: as much as politically things are really tense between competitors
Speaker 12: right now, there's no and we shouldn't be able to
Speaker 12: inspire more people than just SpaceX to be making these advancements,
Speaker 12: and I don't think we want just a single player.
Speaker 5: So briefly, Laurie, where do you back in the tech
Speaker 5: stack of ultimately rocket companies and space industry right now?
Speaker 12: Well, at this point, United Launch Alliance is still launching,
Speaker 12: it's more expensive, they're not reusable. Blue Origin has launched
Speaker 12: now their Vulcan rocket, and I think in twenty twenty
Speaker 12: five will launch New Glen, which.
Speaker 1: Is supposed to be reusable.
Speaker 12: Over the longer term, the Europeans are developing new vehicles,
Speaker 12: mostly not reusable, so there is no questions.
Speaker 1: SpaceX is in the lead.
Speaker 12: As I've said in my book, be hard for anyone
Speaker 12: to catch up in ten years unless SpaceX and Elon.
Speaker 5: Trips escaping Gravity your first time account of a new
Speaker 5: era of NASA and Space. Lori Gava also a bestmer
Speaker 5: Venture Partners. We thank you very much.
Speaker 13: There could be more decline, It could level off YouTube
Speaker 13: TV Bulu Live.
Speaker 14: Is it going to hurt your soul a little bit
Speaker 14: if YouTube TV surpasses you as the biggest cable operator.
Speaker 13: Not if they're using Exfinity broadband and watching NBC and
Speaker 13: watching over. We will have transitioned our company pretty carefully.
Speaker 3: We're going to, you know, be pretty.
Speaker 13: Happy with the Comcast NBCUniversal that we got.
Speaker 5: Transitioning carefully. The Comcast CEO Brian Roberts. They're back in
Speaker 5: October at Broomberg screen time when he throwed to the
Speaker 5: idea of perhaps spinning off the company's cable networks into
Speaker 5: a new company in the face of an industry wide
Speaker 5: decline in subscribers. Now Comcast confirmed it. It's been off
Speaker 5: of cable TV channels, including MSNBCCNBC USA Room Meg's Lucashaw
Speaker 5: is here with why that level of detail on those
Speaker 5: channels and what they actually leave out in terms of
Speaker 5: setain channels.
Speaker 14: Well, they will keep NBC, which is the broadcast network
Speaker 14: it's got. Most are the kind of their biggest sports rights,
Speaker 14: including pro football and what will be a lot of
Speaker 14: Pro basketball starting next year. It has their sort of
Speaker 14: hard news gathering business, and it also is an entertainment business.
Speaker 3: They're their biggest entertainment business. They're also keeping Bravo.
Speaker 14: That's because Bravo programming does quite well on Peacock. You know,
Speaker 14: when they're thinking about the future of their entertainment business,
Speaker 14: there's three pillars. There's their studio business in LA which
Speaker 14: produces film and television.
Speaker 3: There's their theme parks, and then there's kind.
Speaker 14: Of what has been cable networks but now is really
Speaker 14: all about streaming. And so all the cable networks that
Speaker 14: don't fit into that streaming future that have been.
Speaker 3: A drag on their stock.
Speaker 14: Because they're not a fast growth business are getting spun
Speaker 14: out into something completely separate.
Speaker 5: And what does that spin co as it's currently still
Speaker 5: cool and not becoming lucas it's seven billion dollars an
Speaker 5: annual revenue. Does that grow? Does that shrink?
Speaker 14: It's going to be up to the new leadership, which
Speaker 14: is Mark Lazarus, who's a top person at NBCUniversal now
Speaker 14: will be the CEO of that new company. He was
Speaker 14: one of the architects of Comcast deal for the NBA rights.
Speaker 14: You know, the Comcast executives that I've spoken with believe
Speaker 14: that this new spin Co could be a vehicle for acquisition.
Speaker 14: It could go and buy other cable networks. It could
Speaker 14: go and buy some other media assets. It could also
Speaker 14: be something that a private equity firm wants to.
Speaker 3: Come and buy it. It's a little bit unclear, you know.
Speaker 14: I think a lot of people in the industry look
Speaker 14: at it and see it as something that.
Speaker 3: Will sort of overtime trible and die.
Speaker 14: But there is a belief that it could be a
Speaker 14: vehicle for acquisitions that Comcast wouldn't want to do.
Speaker 5: NUCA sure appreciate analysis, Thank you. Let's talk more about
Speaker 5: reorientating pivoting. Hasbro wants to shift its focus back to
Speaker 5: play a maker of Gi Joe action figures, Mister Potato
Speaker 5: Head is moving away fromerhaps the film in the TV
Speaker 5: business side, instead focusing on digital versions of some of
Speaker 5: the most popular brands. Cecilia Denestasier joins US now with
Speaker 5: gaming like, where does the vision of some of their
Speaker 5: iconic ip end up going. It's a good question. Video
Speaker 5: games for Hasbro. They feel are very intuitive because it's
Speaker 5: crowded in play.
Speaker 15: You're thinking, you know, kids growing up with Plato Gi Joe,
Speaker 15: Now they want to play video games. They want to
Speaker 15: play video game versions of you know, Gi Joe on
Speaker 15: consoles and on PCs.
Speaker 5: What's so fun? The way in which you've written the
Speaker 5: story is you deep dive on Chris Cox is the CEO,
Speaker 5: relatively new, taking over after the passing of the previous leader,
Speaker 5: and he's a gamer at heart, like you talk about
Speaker 5: how into the card game he was playing.
Speaker 15: Chris Cox and I've played Magic the Gathering together during
Speaker 15: our meeting in New York City. He beat me, I'm
Speaker 15: sad to say, but we also got to talk a
Speaker 15: lot about the future of Magic the Gathering, which.
Speaker 16: Is a playable, tradable collectible card game. It's several decades old,
Speaker 16: really popular and a huge driver of sales for the
Speaker 16: Wizards of the Coast division of Hasbro.
Speaker 5: Let's just talk about ultimately their buyers. Because I've got
Speaker 5: a son who's obsessed with the Pokemon and there's a whole
Speaker 5: load of cards in paraphernalia we keep on buying. Who
Speaker 5: are the demographic because there's also older collectors. There's also
Speaker 5: people who've loved it and grown up with it, and
Speaker 5: therefore do they transition to the gaming too? Is it
Speaker 5: really about the younger demographic?
Speaker 15: Magic the Gathering is a game that's really complicated and
Speaker 15: difficult to get very good at, but younger people can
Speaker 15: enjoy it too. Right now, what has Goes contending with
Speaker 15: is the fact that there are a lot of older
Speaker 15: Magic the Gathering players who want to continue playing with
Speaker 15: their friends and their family and their communities. But they're
Speaker 15: also launching all of these cards, for example, with Marvel
Speaker 15: and Lord of the Rings themes to bring in newer,
Speaker 15: younger players.
Speaker 5: How do they partner? Do they build internally, do they
Speaker 5: go externally? What does the future look like?
Speaker 15: Magic the Gathering is incorporating IP from other companies into
Speaker 15: the cards, so that will just basically look like, you know,
Speaker 15: Spider Man or Wolverine images on these playing cards.
Speaker 5: Okay, partnerships, cross ip, cross businesses, cross platforms as well.
Speaker 5: We love it, Thank you, it's a great We go
Speaker 5: check it out. Bloomberg. Cecilia Dinastasio with the latest when
Speaker 5: it comes to all things Hasbro. Now, that does it
Speaker 5: for this edition of bloombg Technology. Look, you do not
Speaker 5: want to forget about not only our podcast, but also
Speaker 5: what's happening later after the bell in Video coming out
Speaker 5: with its earnings, all important macro event for the entire market.
Speaker 5: You're going to be seeing up to what three hundred
Speaker 5: billion dollars in market capitalization move any which way. This
Speaker 5: is a three trillion dollar company. Currently we're off by
Speaker 5: four ten percent on the Nastak one hundred tug lower.
Speaker 5: By the likes of video, we are off of our
Speaker 5: lows though one hundred and forty five ninety three is
Speaker 5: where we trade. Can we see a future of Blackwell's
Speaker 5: supply side matching up with the demand. We'll have a
Speaker 5: special coming to you on Bloomberg TV at four pm
Speaker 5: in Eastern time, But for now, check out what we
Speaker 5: just count for you on the show on the Terminal,
Speaker 5: online on Apple and Spotify, and iHeart by tuning in
Speaker 5: too our podcast.
Speaker 6: This is Bloomberg Technology