WEBVTT - Lyft and the Gig Economy (Podcast) 0:00:03.360 --> 0:00:06.600 From the heart of where innovation, money and power. CALLI 0:00:07.480 --> 0:00:12.000 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:12.039 --> 0:00:27.760 Emily Jay. I'm Emily Chack in San Francisco, and this 0:00:27.800 --> 0:00:30.400 is Bloomberg Technology. Coming up in the next hour. The 0:00:30.480 --> 0:00:32.800 labor market seems to be heating up, more than double 0:00:33.159 --> 0:00:36.000 the number of jobs forecast added in July. I will 0:00:36.040 --> 0:00:38.599 ask LIFTS president about the state of the gig economy 0:00:38.840 --> 0:00:43.360 as murmurs of a recession get quieter for now still, 0:00:43.400 --> 0:00:46.280 the housing market cooling after rate heights make home buying 0:00:46.680 --> 0:00:49.720 that much more expensive. Power platforms like Zillo and Redfin 0:00:49.840 --> 0:00:54.920 reassessing after years of unprecedented demand. Redfen CEO Glenn Kellman 0:00:55.200 --> 0:00:58.760 also with us this hour, and Lincoln co founder Reid 0:00:58.800 --> 0:01:01.720 Hoffman wants to sell you are created by a computer. 0:01:01.920 --> 0:01:03.240 Will tell us what it was like to sell a 0:01:03.240 --> 0:01:06.200 collection of AI generated n f T and what it 0:01:06.240 --> 0:01:09.120 tells him about the future. We will get to all 0:01:09.160 --> 0:01:10.840 of that in a moment, but first, for more on 0:01:10.920 --> 0:01:12.800 LIFT results in the state of the gig economy, I 0:01:12.800 --> 0:01:15.240 want to bring in John Zimmer, co founder, vice chair 0:01:15.280 --> 0:01:17.800 and president of Left John great to have you back 0:01:17.840 --> 0:01:20.480 with us. What changed this quarter. It seems like a 0:01:20.600 --> 0:01:24.680 switch was flipped or you shifted into a new gear. Yeah, 0:01:24.800 --> 0:01:27.039 we had a we had a great quarter record high 0:01:27.040 --> 0:01:29.440 adjusted I BADA profit for the company. The team did 0:01:29.440 --> 0:01:33.440 phenomenal work. UH, and we really made some adjustments going 0:01:33.480 --> 0:01:37.080 into the quarter. But also the business conditions are improving 0:01:37.120 --> 0:01:41.280 for us on the driver's side. UH, drivers are doing well. 0:01:41.400 --> 0:01:44.720 They had you know, thirty seven dollars on average UH 0:01:44.760 --> 0:01:47.600 an hour for their earnings. UH. And we're much more 0:01:47.640 --> 0:01:50.080 imbalanced so year over year are e t A S 0:01:50.440 --> 0:01:53.720 which is a great level of or measure of service 0:01:53.800 --> 0:01:56.560 levels came down three minutes. So really happy with what 0:01:56.560 --> 0:01:59.920 we're seeing in the marketplace. We got positive jobs now 0:02:00.040 --> 0:02:02.120 use today kind of a surprise. But I wonder how 0:02:02.120 --> 0:02:05.560 concerns you still are about the macro environment. We've got inflation, 0:02:05.600 --> 0:02:07.960 you still got high gas prices, and you've got a 0:02:08.040 --> 0:02:13.840 recession looming. Yeah, we were watching it obviously closely. I 0:02:13.880 --> 0:02:17.840 think there are positives and negatives for our marketplace. UM. 0:02:17.880 --> 0:02:20.680 When you have more people looking for flexible work with 0:02:20.720 --> 0:02:23.960 good earnings. UM. You know, as we're seeing right now, 0:02:24.200 --> 0:02:27.840 it does help us on the driver's side of the equation. UH. 0:02:27.880 --> 0:02:30.680 And and writers are still coming back because you know, 0:02:30.720 --> 0:02:36.160 we're coming off the bottom of a pandemic that really uh, 0:02:36.360 --> 0:02:38.519 you know, affected and hurt our business, and so there's 0:02:38.560 --> 0:02:41.040 a lot of headroom left. Uh, And the driver's side 0:02:41.080 --> 0:02:44.400 of the equation improving is really nice to see. I 0:02:44.440 --> 0:02:48.160 spoke to your competition this week. Here's Uber CEO Dara Kasbasha, 0:02:48.360 --> 0:02:52.919 he who said he thinks Uber is a recession resistant company. 0:02:52.960 --> 0:02:56.200 Take a listen to what he had to say. Because 0:02:56.240 --> 0:02:59.800 we're in multiple businesses, both in mobility and delivery. I 0:02:59.840 --> 0:03:02.640 think we have a kind of business that can perform 0:03:02.880 --> 0:03:05.720 in all weather. But at the same time, we are 0:03:05.800 --> 0:03:08.760 being disciplined in terms of costs to make sure that 0:03:09.120 --> 0:03:15.000 as the environment, if it gets tougher, we are prepared. John, 0:03:15.040 --> 0:03:18.560 how would you described lists chances in a recession? Are 0:03:18.600 --> 0:03:21.360 you any less recession proof if you will, because you 0:03:21.400 --> 0:03:24.359 don't have a delivery part of the business, for example, 0:03:25.560 --> 0:03:27.200 I think we're in a better position if you think 0:03:27.200 --> 0:03:31.280 about you know, people having less discretionary money to spend, uh, 0:03:31.360 --> 0:03:35.080 do they spend it on you know, inflated ordering in 0:03:35.360 --> 0:03:37.960 food that that has become inflated, or do they make 0:03:38.000 --> 0:03:41.280 food for themselves? Um? And actually we looked back at 0:03:41.440 --> 0:03:45.680 historical data and transportation is quite durable compared to take out. 0:03:47.160 --> 0:03:49.920 So let's talk a little bit about your strategy around costs. 0:03:50.000 --> 0:03:53.080 You know Ed was just talking about more layoffs at 0:03:53.120 --> 0:03:55.120 tech companies. I know you talked a little bit about 0:03:55.200 --> 0:03:58.200 hiring on the call. What's your strategy when it comes 0:03:58.240 --> 0:04:00.720 to spending? Are you pulling on the brake or are 0:04:00.800 --> 0:04:03.680 you stepping on the gas like Airbnb CEO Brian Chesky 0:04:03.760 --> 0:04:06.360 told me he's doing earlier this week. When it comes 0:04:06.360 --> 0:04:10.440 to spending for growth and hiring, we're being quite cautious. 0:04:10.480 --> 0:04:13.200 So we we really slowed our hiring at the start 0:04:13.280 --> 0:04:17.839 of the quarter um and at first frozen outright and 0:04:17.880 --> 0:04:20.760 then only opened up the head count that we saw 0:04:21.200 --> 0:04:24.080 as incredibly valuable to our to our plans to drive 0:04:24.320 --> 0:04:27.159 profitable growth. So I'd say we're gonna be you know, 0:04:27.200 --> 0:04:31.720 continued to be cautious. Uh. And and on hiring specifically, 0:04:32.200 --> 0:04:34.640 UH still do some but but not put the pedal 0:04:34.640 --> 0:04:38.200 down when it comes to hiring and just retaining employees. 0:04:38.279 --> 0:04:41.040 How are you keeping people motivated? I know today this 0:04:41.080 --> 0:04:43.640 week was a particularly great week for lift shares, but 0:04:43.680 --> 0:04:46.280 they are down significantly since I p O and down 0:04:46.320 --> 0:04:50.760 more than some of your industry peers, if you will. Yeah, 0:04:50.800 --> 0:04:53.200 we have a phenomenal team that's been with us through 0:04:53.400 --> 0:04:55.040 a lot of the ups and downs of the past 0:04:55.080 --> 0:04:58.719 couple of years. The team, UH, you know, at all levels, 0:04:58.720 --> 0:05:02.719 and especially the leadership level, is battle tested. I've never 0:05:02.760 --> 0:05:06.640 seen a more cohesive feeling for for our leadership team, 0:05:06.720 --> 0:05:08.360 and then I have over the past few months. I'm 0:05:08.400 --> 0:05:12.800 confident we're retaining talent, We're hiring phenomenal talent, so we're 0:05:12.800 --> 0:05:16.040 we're in a good place because people love the mission 0:05:16.120 --> 0:05:18.800 level we're working on UH and know that there's a 0:05:18.800 --> 0:05:22.920 lot of room to grow from here. All right, John Zimmer, 0:05:23.040 --> 0:05:25.520 President of Lift, Good to have you back, John, Thank you, 0:05:25.600 --> 0:05:29.720 thank you for joining us. All right. Meta has put 0:05:29.720 --> 0:05:32.960 its acquisition of the VR Company within Unlimited on hold 0:05:33.160 --> 0:05:36.800 for now, putting the deal on ice until or until 0:05:36.800 --> 0:05:39.080 the court makes a ruling on the stec's lawsuit to 0:05:39.160 --> 0:05:42.479 block this transaction. The FTC alleges the deal would help 0:05:42.520 --> 0:05:54.720 Meta monopolize the VR industry. Chairs of red Fit are 0:05:54.720 --> 0:05:59.320 having the best day in months, despite reporting earnings below expectations, 0:05:59.360 --> 0:06:03.680 the stock jumping more than at the close unprecedented demand 0:06:03.720 --> 0:06:06.280 for homes has given real estate online real estate to 0:06:06.320 --> 0:06:08.560 boost in the last few years, but higher rates are 0:06:08.600 --> 0:06:11.800 slowing that momentum. I want to bring in red Vincy Yo, 0:06:11.800 --> 0:06:14.760 Glenn Kelman. Now, Glen, it feels like so many times 0:06:14.800 --> 0:06:16.960 we've talked when the stock is down, but today shares 0:06:17.000 --> 0:06:20.680 are up more than four How do you square that 0:06:20.960 --> 0:06:23.840 with the housing market taking a turn from the worst? 0:06:24.000 --> 0:06:27.359 To use your words, well, I think it could have 0:06:27.400 --> 0:06:31.560 been worse. Analysts were worried that the market had completely crashed, 0:06:31.560 --> 0:06:34.080 and instead, over the past four weeks it's gotten better. 0:06:34.240 --> 0:06:38.360 So in June, demand was far worse than almost anyone expected. 0:06:38.360 --> 0:06:43.800 We had the biggest rate hike since economists were thinking 0:06:43.839 --> 0:06:46.200 that there'd be a one percent decrease in home sales, 0:06:46.240 --> 0:06:48.919 and instead there was a nine percent decrease in home sales. 0:06:49.279 --> 0:06:52.880 So people freaked. But things got a little better in 0:06:52.920 --> 0:06:55.279 the last few weeks of July and that led to 0:06:55.480 --> 0:06:59.320 some optimism and the housing market. So when you look 0:06:59.320 --> 0:07:01.800 at the housing mark it are you optimistic or are 0:07:01.800 --> 0:07:03.720 you freaking out a little bit? What are the trends 0:07:03.720 --> 0:07:08.160 that you see that are most alarming? It changes day 0:07:08.200 --> 0:07:10.880 to day, So I think On one hand, you've got 0:07:10.920 --> 0:07:13.920 places like Boise, Salt Lake City, and Denver having more 0:07:13.920 --> 0:07:16.440 than half their listings drop their price. In Boise it 0:07:16.480 --> 0:07:20.160 was si the ie buyers are just ripping the bottom 0:07:20.160 --> 0:07:22.400 out of the market because we have to price ahead 0:07:22.400 --> 0:07:24.960 of everyone else to liquidate our inventory. So that has 0:07:24.960 --> 0:07:28.680 made the correction sharper, but hopefully more short lived than 0:07:28.720 --> 0:07:32.200 anyone expected. And on the other side, the FED was 0:07:32.240 --> 0:07:37.119 debbish about interest rates last week, and so mortgage rates 0:07:37.160 --> 0:07:39.840 have really come down. Buyers have come back because home 0:07:39.880 --> 0:07:42.760 prices are down and now the mortgages are more affordable, 0:07:43.160 --> 0:07:46.000 so we've seen a slide uptick in demand. I think 0:07:46.040 --> 0:07:48.040 it's good that we're letting some air out of the balloon. 0:07:48.120 --> 0:07:54.120 In general, it was too crazy. So what direction is 0:07:54.160 --> 0:07:55.720 this all going in? I mean, do you think of 0:07:55.800 --> 0:07:58.600 recession is inevitable or are we already in one and 0:07:58.640 --> 0:08:02.480 somebody just has to call it. I don't think we're 0:08:02.520 --> 0:08:04.920 already in a recession. I think the housing market is 0:08:04.960 --> 0:08:08.080 definitely in a jam where it has been very volatile. 0:08:08.240 --> 0:08:10.000 It has been hard on people trying to buy and 0:08:10.040 --> 0:08:12.520 sell their home, but the rest of the economy is 0:08:12.560 --> 0:08:15.240 doing reasonably well. The stock market has recovered. There was 0:08:15.240 --> 0:08:18.160 a great jobs print today. So it just depends on 0:08:18.240 --> 0:08:21.360 whether the FED has to take really aggressive action with inflation. 0:08:21.920 --> 0:08:24.080 And I was surprised at how devash they are because 0:08:24.120 --> 0:08:26.680 I think that inflation trends are deep seated, and so 0:08:26.760 --> 0:08:28.400 the FED is going to have to take another bite 0:08:28.400 --> 0:08:30.920 at the apple and raise rates later in the year. 0:08:30.960 --> 0:08:35.079 But we'll see. I don't run the FED. It's the reason. Well, 0:08:35.600 --> 0:08:37.439 you do have a great outlook on the housing market, 0:08:37.480 --> 0:08:40.240 and what is your outlook for let's say second half 0:08:40.280 --> 0:08:44.480 half of the year availability and affordability of homes. What 0:08:44.520 --> 0:08:47.760 are you expecting Homes are going to get more affordable. 0:08:47.840 --> 0:08:51.400 Prices are coming down. Uh, Sellers across the board are 0:08:51.440 --> 0:08:54.520 cutting their prices. The beautiful homes are the ones that 0:08:54.559 --> 0:08:56.520 are selling right now. The homes that have a funky 0:08:56.559 --> 0:08:58.720 layout are actually being withdrawn from the market. So the 0:08:58.720 --> 0:09:01.199 price drops are actually steve for than most people realize 0:09:01.240 --> 0:09:03.640 because of this selection bias. If we had to sell 0:09:03.679 --> 0:09:06.040 all the homes that we sold a year ago, prices 0:09:06.120 --> 0:09:09.280 really would have fallen. So that has led to more 0:09:09.280 --> 0:09:11.720 buyers coming back to the market. I think that it's 0:09:11.720 --> 0:09:14.200 going to be a fairly balanced market. For the next 0:09:14.200 --> 0:09:16.920 few months until the FED makes another move. But if 0:09:16.920 --> 0:09:19.560 the FED makes another move, all the bets are off 0:09:19.600 --> 0:09:23.760 because consumers have been so ridiculously rate sensitive over the 0:09:23.800 --> 0:09:25.880 past few months. I'm used to that. I've been doing 0:09:25.880 --> 0:09:29.240 this for fifteen years, but I've never seen such rate increases, 0:09:29.280 --> 0:09:33.160 and consumers respond so strongly to those rate increases. So 0:09:33.360 --> 0:09:35.560 what does this mean for those would be first time 0:09:35.640 --> 0:09:38.720 home buyers that are just trying to get on the 0:09:38.760 --> 0:09:42.920 property letter and have not been able to. Yeah, it's 0:09:42.920 --> 0:09:45.760 a real generational challenge for the fabric of American society. 0:09:45.800 --> 0:09:47.360 There's a whole bunch of people who are coming of 0:09:47.400 --> 0:09:50.400 age right now who can't afford the American dream, and 0:09:50.440 --> 0:09:53.160 the pinch is that they're stuck between rising rents and 0:09:53.360 --> 0:09:57.000 very high home prices. So we try to tell people 0:09:57.120 --> 0:09:59.360 to date the rate and marry the house. That just 0:09:59.440 --> 0:10:01.679 means that you can read finance in a couple of years. 0:10:01.679 --> 0:10:03.480 But if you can now buy a house that would 0:10:03.480 --> 0:10:06.680 have sold for two thousand dollars over asking some crazy 0:10:06.720 --> 0:10:08.960 bidding more just three months ago and that is now 0:10:09.120 --> 0:10:11.480 sitting on the market, make an aggressive offer. And that 0:10:11.600 --> 0:10:14.600 is especially true in the middle of the country. And 0:10:14.600 --> 0:10:17.280 in the coastal markets, we've definitely seen price declients, but 0:10:17.400 --> 0:10:20.839 things got way out of hand in places like Las Vegas, Phoenix, Boise, 0:10:21.040 --> 0:10:23.240 Salt Lake. The middle of the country and the Sun 0:10:23.280 --> 0:10:25.920 Belt was way over priced and that is now coming 0:10:25.920 --> 0:10:28.000 back to earth and there's going to be a significant 0:10:28.040 --> 0:10:31.439 correction there now. We've seen a number of layoffs at 0:10:31.440 --> 0:10:35.080 tech companies, Oracle just the latest one today. Redfin also 0:10:35.480 --> 0:10:39.160 having some layoffs. After you said they hired, you hired 0:10:39.200 --> 0:10:45.200 faster than ever last year. What was the miscalculation. Well, 0:10:45.400 --> 0:10:48.840 it wasn't just a miscalculation, it was my miscalculation. I 0:10:48.920 --> 0:10:51.439 was the one who hired into that. It's so hard 0:10:51.520 --> 0:10:54.600 because you're not gaining as much share as you should. 0:10:54.600 --> 0:10:57.040 You're turning away thousands of customers every month. You don't 0:10:57.040 --> 0:10:59.280 have enough real estate agents to serve the demand. You 0:10:59.360 --> 0:11:01.440 can't solve all the problems that are coming at you 0:11:01.559 --> 0:11:04.440 left and right, and then the market just drops out. 0:11:04.760 --> 0:11:09.640 And so we laid off six of our workforce, and 0:11:10.240 --> 0:11:13.520 I'm the one accountable for that. I feel so ashamed 0:11:13.559 --> 0:11:16.720 about it. I was so blue. I still am. But 0:11:16.800 --> 0:11:19.480 it's what we had to do to run a profitable 0:11:19.480 --> 0:11:23.640 business and now I think we feel more optimistic about 0:11:23.640 --> 0:11:26.320 the future, but we're still running on an ice edge. 0:11:26.480 --> 0:11:30.120 We're not out of the woods yet. Well, I appreciate 0:11:30.160 --> 0:11:32.440 you being honest with us about your feelings, and I 0:11:32.440 --> 0:11:34.960 wonder how it makes you think differently about the future. 0:11:35.120 --> 0:11:38.040 How are you diversifying your business if things get worse? 0:11:38.280 --> 0:11:42.400 You know, how are you recalculating your approach to hiring 0:11:42.920 --> 0:11:47.839 in a new environment. Well, every time you go through 0:11:47.920 --> 0:11:50.559 something like this, you say, never again. Every single time 0:11:50.600 --> 0:11:52.520 I hired somebody, I'm gonna remember I might have to 0:11:52.559 --> 0:11:55.280 fire that person one day because we don't have enough money. 0:11:55.559 --> 0:11:58.439 And it's just hard because it's almost like you're on drugs, 0:11:58.559 --> 0:12:01.640 you've drank too much. You're just at last some party 0:12:01.720 --> 0:12:03.000 or something in three in the morning, and all of 0:12:03.040 --> 0:12:05.240 a sudden, the lights come up and you're like, what 0:12:05.280 --> 0:12:07.520 have I done? So you just have to be really 0:12:07.559 --> 0:12:09.719 careful about your hiring. I don't think we're going to 0:12:09.760 --> 0:12:14.079 diversify the business because we are going to keep taking share. 0:12:14.200 --> 0:12:16.440 We sell homes faster for more money. We charge a 0:12:16.480 --> 0:12:18.920 one percent fee. The basic engine of the business is 0:12:19.040 --> 0:12:20.960 very good. If we wanted to get out of the business, 0:12:21.280 --> 0:12:23.000 I don't know what else we would do, because there 0:12:23.080 --> 0:12:26.400 isn't a better business than that. So we just have 0:12:26.600 --> 0:12:30.800 to focus, execute, keep doing what we're doing, and the 0:12:30.840 --> 0:12:34.000 rest is going to take care of itself. And you know, 0:12:34.280 --> 0:12:36.080 as we look to the second half of the year, 0:12:36.240 --> 0:12:38.960 and you know, the evolution of the pandemic, maybe another 0:12:39.000 --> 0:12:41.760 COVID spike, maybe monkeypox gets out of control. We're just 0:12:41.800 --> 0:12:45.360 talking talking to John Zimmer have left about this earlier. 0:12:45.640 --> 0:12:51.000 How are you taking the unpredictable into account? Well, by 0:12:51.000 --> 0:12:53.560 its very nature, you can't take that into account. I 0:12:53.600 --> 0:12:57.120 just think that instead of responding immediately to more demand 0:12:57.240 --> 0:13:01.000 by hiring, instead of investing a long term future, you 0:13:01.040 --> 0:13:02.920 just have to be more careful and take it day 0:13:02.920 --> 0:13:10.160 by day. So we recognize that life is complicated, that 0:13:10.440 --> 0:13:12.840 the world has all these different forces. There's a war 0:13:12.880 --> 0:13:16.280 in Ukraine, there's inflation, there's all sorts of geopolitical unrest, 0:13:17.040 --> 0:13:18.760 and we just try to stick to our knitting and 0:13:18.800 --> 0:13:21.520 do what we do best. And if bad things are 0:13:21.520 --> 0:13:24.520 going to happen, you can't just rely on the idea 0:13:24.760 --> 0:13:27.520 that you're going to have incredible commercial success. You have 0:13:27.640 --> 0:13:29.920 to have some rudder that guide you through your life 0:13:29.920 --> 0:13:32.160 where you really believe in what you're doing. So if 0:13:32.200 --> 0:13:34.240 there's a moral dimension to it, it helps you get 0:13:34.240 --> 0:13:36.360 through the more ups and downs a little bit better. 0:13:36.960 --> 0:13:39.080 But if it's all about the money, as soon as 0:13:39.120 --> 0:13:42.599 there ain't no money in it, your whole being collapses. 0:13:43.400 --> 0:13:46.240 And so I think we just have to remember that 0:13:46.360 --> 0:13:48.959 we got into this business to make housing more affordable, 0:13:49.080 --> 0:13:51.800 to make it more fair, and if we do that, 0:13:51.840 --> 0:13:54.120 we're also going to make a pretty penny for all 0:13:54.160 --> 0:13:56.199 the people who have invested in us. We want to 0:13:56.320 --> 0:13:58.600 vindicate you, but the way to do it is to 0:13:58.640 --> 0:14:02.960 do it right. Look at the moral compass of a CEO. 0:14:03.080 --> 0:14:07.920 Glenn Coleman. Great with us. I always afree, I I 0:14:07.960 --> 0:14:10.480 believe it's genuine. I hope it's genuine. Uh, And I 0:14:10.520 --> 0:14:15.440 always appreciate you. Open it up a little here. Thank you, Thanks, Emily, 0:14:15.640 --> 0:14:18.040 take care of all right you too. Red Fence CEO 0:14:18.600 --> 0:14:22.240 gen Glenn Kelman. Alright, coming up. Amazon has its own 0:14:22.280 --> 0:14:24.760 home robot. So why is it buying the room ba 0:14:24.880 --> 0:14:29.160 maker I Robot. We'll dig in next. This is Bloomberg. 0:14:44.280 --> 0:14:47.880 Amazon continues it's push into internet connected home devices. It 0:14:47.960 --> 0:14:50.280 is agreed to buy I Robot, the company that makes 0:14:50.360 --> 0:14:53.760 room Buz, those robots that vacuum and wash floors. The 0:14:53.800 --> 0:14:56.320 deal valued at about one point seven billion dollars. Here 0:14:56.360 --> 0:14:59.280 to tell us why maybe is creative strategy of president 0:14:59.280 --> 0:15:01.560 and principle analys Carolyn A milanais Caroline, are great to 0:15:01.560 --> 0:15:04.800 have you back with us. So why I robot for Amazon? 0:15:06.080 --> 0:15:09.520 Because it's about the mass market? Although Amazon has his 0:15:09.640 --> 0:15:12.320 own robot is a robot that is over a thousand 0:15:12.320 --> 0:15:15.680 dollars and hasn't yet made it to market, and a 0:15:15.800 --> 0:15:19.240 Rumba is already in a lot of homes. H I 0:15:19.480 --> 0:15:23.320 robot as the trust of consumers, and so Amazon is 0:15:23.360 --> 0:15:27.120 acquiring that trust to some extent, the data that they 0:15:27.160 --> 0:15:30.280 already governed, and the opportunity to get to more homes 0:15:30.280 --> 0:15:36.240 and govern more data. What about Amazon's Astro robot. I mean, 0:15:36.440 --> 0:15:39.120 they had this big reveal and we haven't heard a 0:15:39.120 --> 0:15:43.440 lot about Astro since I actually had the opportunity to 0:15:43.520 --> 0:15:46.320 try for a few days in my own home, and 0:15:46.680 --> 0:15:49.920 it's a very different experience to a Rumba is really 0:15:49.960 --> 0:15:53.560 more about um, you know, like almost a pet like 0:15:53.800 --> 0:15:57.520 robot in your home that takes a little bit more 0:15:57.560 --> 0:16:01.160 adjusting to, has some militied limitations far as where it goes. 0:16:01.920 --> 0:16:04.920 I think it's very earlier days. There's a lot of 0:16:04.920 --> 0:16:09.280 opportunity in automation, but from a price point perspective, the 0:16:09.360 --> 0:16:13.440 room that fits a larger market today that will get 0:16:13.560 --> 0:16:18.320 necessary information to Amazon to make them astro more successful tomorrow. 0:16:18.760 --> 0:16:20.960 Well that was my next question. Do we want a 0:16:21.040 --> 0:16:23.760 robot pet or does a robot vacuum cleaner just make 0:16:23.800 --> 0:16:27.040 more sense? It depends what you're doing. I think there 0:16:27.080 --> 0:16:31.600 are use cases around automation, for instance, for summer homes 0:16:31.640 --> 0:16:34.760 where you want some um, you know, continue policing, if 0:16:34.800 --> 0:16:37.920 you want of your home, or if you have older 0:16:38.280 --> 0:16:41.240 people in your family that you want some help with 0:16:41.840 --> 0:16:46.320 even navigating the home. I think there's that opportunity. My 0:16:46.400 --> 0:16:49.240 cats and dog went on got on quite well with it, 0:16:49.360 --> 0:16:52.560 so there's there's an opportunity there as well as a 0:16:52.600 --> 0:16:55.320 pet sitter. But I think for a lot of consumers 0:16:55.320 --> 0:16:58.680 it will take a little bit of adjusting to do 0:16:58.720 --> 0:17:01.320 you think we're going to see more acquisitions like this 0:17:01.480 --> 0:17:06.320 are in this area from Amazon. I think there's a 0:17:06.320 --> 0:17:08.560 lot of opportunity in the in the home, and I 0:17:08.600 --> 0:17:11.840 think generally automation and if you're thinking about the core 0:17:11.960 --> 0:17:14.560 asset that comes way room by which is you know, 0:17:14.560 --> 0:17:18.080 knowing the layout of your home can be applied to 0:17:18.200 --> 0:17:22.399 other areas, whether it is, you know, a factory or 0:17:22.840 --> 0:17:29.240 is an office. So there's um AI and functionalities that 0:17:29.480 --> 0:17:33.960 Amazon can utilize in other areas, but not just our home. 0:17:34.080 --> 0:17:37.280 And so that I think is where the opportunity is 0:17:37.320 --> 0:17:42.439 for more acquisitions. All right, Carolina Middle and SE Creative 0:17:42.480 --> 0:17:45.480 Strategies President and principle analyst, go to have you back, Carolina, 0:17:45.960 --> 0:17:56.760 have a great weekend. My guess is that we're past 0:17:56.840 --> 0:18:03.760 peak inflation um, and that we will see we will 0:18:03.800 --> 0:18:07.040 have a recession. Yeah, I would say probably, you know, 0:18:07.160 --> 0:18:13.119 mild moderate recession maybe eighteen months ish um and um. 0:18:15.000 --> 0:18:18.720 And I think we think inflation is going to drop rapidly. 0:18:18.840 --> 0:18:21.000 That's my guess. I know what what do you guys 0:18:21.000 --> 0:18:24.640 think we might be able to announce another factory location 0:18:24.720 --> 0:18:35.879 later this year? Uh? Where where should we okay, whish 0:18:35.880 --> 0:18:39.960 where should we build it? Okay? We got We've got 0:18:40.000 --> 0:18:46.080 a lot of Canada's. Uh I'm half I'm half Canadian, 0:18:46.160 --> 0:18:49.800 so maybe I should you know, Well, I'll come back 0:18:49.840 --> 0:18:52.600 to Bloomberg Technology and Emily Chang in San Francisco. Shares 0:18:52.640 --> 0:18:54.639 of Tesla and Twitter both on the move to end 0:18:54.640 --> 0:18:56.840 the week, and who's at the heart of it, Elon Musk, 0:18:56.880 --> 0:19:00.280 of course. Thursday, Tesla held its annual shareholder in eating 0:19:00.560 --> 0:19:04.440 and behind the scenes meantime, new court documents revealed Musk 0:19:04.640 --> 0:19:10.400 countersued Twitter over that billion dollar deal. Are at Ludlow 0:19:10.560 --> 0:19:13.600 back here to break it all down. So much news. 0:19:13.640 --> 0:19:14.959 I don't know what to make of all that from 0:19:14.960 --> 0:19:17.720 e Elon Musk. But Twitter shares up three point six percent, 0:19:17.800 --> 0:19:21.639 As you said, court documents from last week unsealed showed 0:19:21.640 --> 0:19:24.800 that must counter suit accutizing Twitter of fraud. Will get 0:19:24.880 --> 0:19:27.160 into that in a second. But Tesla down almost seven 0:19:27.520 --> 0:19:30.840 Interesting After the annual meeting, shareholders approved a three for 0:19:30.960 --> 0:19:33.400 one stock split, and then we found out after Friday's 0:19:33.440 --> 0:19:37.879 close that that split will become effective as of August twenty. So, 0:19:37.960 --> 0:19:40.440 if you're a shareholder of Tessa watching this, by the way, 0:19:40.720 --> 0:19:42.720 you're going to be a shareholder of Note in August seventeenth. 0:19:42.800 --> 0:19:45.479 You'll get two additional shares for everyone you hold, and 0:19:45.520 --> 0:19:48.240 that stock splits effective August twenty five. This is the 0:19:48.280 --> 0:19:50.639 basis of what Musk is saying. He's saying that Twitter 0:19:50.720 --> 0:19:54.159 was fraudulent in their representations of the company and it's business. 0:19:54.200 --> 0:19:56.679 There are two kind of key areas. The first is 0:19:56.720 --> 0:20:00.800 that the number of monetize able day really active users, 0:20:00.800 --> 0:20:02.480 in other words, a number of users on the platform 0:20:02.520 --> 0:20:05.520 that they can make ad sales from is around sixty 0:20:05.560 --> 0:20:08.439 million or so, fewer than Twitter has said it was. 0:20:08.480 --> 0:20:10.439 Twitter denies that, by the way, in a response to 0:20:10.480 --> 0:20:13.040 that filing. The second part is that in the month 0:20:13.040 --> 0:20:16.240 of July, Team Musk estimates that around a third of 0:20:16.280 --> 0:20:19.760 active users on the platform those actually sending tweets were 0:20:19.840 --> 0:20:23.439 spam or bot accounts, and Twitter also denies that and 0:20:23.480 --> 0:20:25.399 referred the judge to the SEC fights. This is the 0:20:25.480 --> 0:20:29.800 latest tips attack. We've seen so many subpoenas of various parties, 0:20:29.840 --> 0:20:33.720 including shareholders of both Tessa and Twitter. Musque asking for information, 0:20:33.760 --> 0:20:36.119 Twitter asking for the information. This is going to go 0:20:36.160 --> 0:20:39.040 on into October seventeenth until that trial starts. But we 0:20:39.160 --> 0:20:41.800 love every twist and turn. Let's look at Elon Musk 0:20:41.800 --> 0:20:43.680 back on stage. He did make a comment that I 0:20:43.760 --> 0:20:46.280 found so interesting because he was kind of asked about 0:20:46.320 --> 0:20:48.960 this idea of key man risk. What happens if you 0:20:49.040 --> 0:20:51.280 leave Tessa what happens if the judge makes your own Twitter. 0:20:51.520 --> 0:20:55.320 He said something very interesting that he understands Twitter's platform 0:20:55.520 --> 0:20:58.640 and that he feels he can help the company improve. 0:20:59.160 --> 0:21:01.959 I just thought that sounded like somebody that thinks they 0:21:02.000 --> 0:21:04.159 might end up owning Twitter. And there's not a lot 0:21:04.200 --> 0:21:05.679 has been made of it. So something to think on 0:21:05.880 --> 0:21:08.880 m in the next few weeks. Interesting. Okay, thank you 0:21:09.080 --> 0:21:13.280 at Ludlow. Well, beauty is in the eye of the beholder. 0:21:13.520 --> 0:21:16.800 One of life's oldest sayings may still hold true when 0:21:16.800 --> 0:21:19.919 it comes to the newest technologies. At least that's what 0:21:19.960 --> 0:21:22.560 Reid Hoffman is betting. The tech entrepreneur just sold a 0:21:22.600 --> 0:21:25.840 collection of AI generated art turned n f T s. 0:21:26.359 --> 0:21:30.080 It's called Untranslatable Words, a series of Salona based n 0:21:30.119 --> 0:21:34.399 f T s or eleven tokenized images generated using open 0:21:34.440 --> 0:21:39.480 Aiyes Dolly to artificial intelligence software. Greylock partner and Lincoln 0:21:39.520 --> 0:21:42.440 co founder Reid Hoffman joins me now for more to 0:21:42.600 --> 0:21:45.320 discuss read great to have you back. So it looks like, 0:21:45.359 --> 0:21:48.800 by my calculations, you sold these from you know, a 0:21:48.800 --> 0:21:51.760 few hundred dollars to one sold for about twenty five 0:21:51.760 --> 0:21:54.880 thousand dollars. All of the money I know going to charity. 0:21:55.320 --> 0:21:58.600 What did you learn from this process about the potential 0:21:58.640 --> 0:22:02.840 for this technology in the future. Well, what's really amazing 0:22:02.880 --> 0:22:05.800 when you get technologies like Dolly is you think initially 0:22:05.800 --> 0:22:07.919 it's like, oh, is this another place where like everyone 0:22:07.960 --> 0:22:11.119 has a B plus graphic designer in their pocket, And actually, 0:22:11.119 --> 0:22:14.120 in fact it's an amplifier of every human being. If 0:22:14.160 --> 0:22:17.320 you're an individual with no visual creation abilities, you can 0:22:17.359 --> 0:22:19.359 still do things like God I was doing and saying, Oh, 0:22:19.400 --> 0:22:21.640 I have this real interest in untranslatable words, what kind 0:22:21.640 --> 0:22:24.120 of what kind of images could you create that would 0:22:24.119 --> 0:22:26.720 be part of that um. If you're an individual who 0:22:26.720 --> 0:22:28.800 has a great graphic design, you can amplify. If you're 0:22:28.800 --> 0:22:31.400