WEBVTT - Apple's Market Value Dips, Nikolas Taps a GM Veteran as CEO 0:00:01.600 --> 0:00:05.280 From the heart where innovation, money and power Collie in 0:00:05.400 --> 0:00:10.320 Silicon Vallet NBN. This is Bloomberg Technology with Caroline hide 0:00:10.320 --> 0:00:37.519 and Ed Ludlow. 0:00:25.040 --> 0:00:28.400 Imed Ludlow in San Francisco. Caroline hides off today this 0:00:28.880 --> 0:00:32.320 is Bluemberg Technology. Our top stories. Full earnings coverage ahead 0:00:32.520 --> 0:00:36.360 as Apple loses its three trillion market cap crown amid 0:00:36.400 --> 0:00:40.760 tepid demand for iPhone plus Amazon seeing strong revenue growth 0:00:40.800 --> 0:00:43.440 even as the e commerce giant reigns in that spending 0:00:43.760 --> 0:00:48.080 under CEO Andy Jasse and Nikola replacing its CEO after 0:00:48.159 --> 0:00:50.800 less than a year of running. The electric truck maker 0:00:50.800 --> 0:00:53.080 will bring you the details on why and a new 0:00:53.560 --> 0:00:57.360 familiar face taking the wheel. It is our top story. 0:00:57.480 --> 0:01:01.200 Apple and Amazon reporting quarterly earnings. Look at the investor response. 0:01:01.440 --> 0:01:04.720 Apple down three percent. That means its market cap is 0:01:04.760 --> 0:01:07.520 now below three trillion US dollars. It has lost that 0:01:07.560 --> 0:01:11.040 three trillion market cap crown. The story here is about 0:01:11.080 --> 0:01:15.479 executives talking iPhone acceleration into the fiscal fourth quarter ending 0:01:15.480 --> 0:01:19.640 in September. Services continuing to be strong, but double digit 0:01:19.680 --> 0:01:24.520 declines in wearables and iPad. The story is it technology 0:01:24.520 --> 0:01:27.640 and a lack of upgrades or new generation platforms in 0:01:27.680 --> 0:01:30.640 the quarter gone, are we waiting for iPhone fifteen. Let's 0:01:30.640 --> 0:01:33.760 get right to Apple and bring in juliask principle analysts 0:01:33.800 --> 0:01:37.120 at Forster, Tim Cook's talking about weakness in the smartphone 0:01:37.160 --> 0:01:40.120 market in the US but strengthen India and China. What 0:01:40.120 --> 0:01:43.600 were the main stories for you? How are this quarter's earnings. 0:01:44.480 --> 0:01:49.160 So specific to his smartphone? The main stories are is 0:01:49.200 --> 0:01:53.680 that Apple did well in China. They did well in 0:01:53.760 --> 0:01:57.240 new markets that are traditionally dominated by Android, and they 0:01:57.280 --> 0:01:59.320 had more and they had a record for the number 0:01:59.360 --> 0:02:04.160 of people who switched from Android to iOS. The challenge 0:02:04.200 --> 0:02:06.680 with the smartphone market is just as you said, it 0:02:06.720 --> 0:02:09.960 is a mature market. When you look at US online adults, 0:02:10.040 --> 0:02:15.040 ninety five percent of them own a smartphone. The devices 0:02:15.040 --> 0:02:20.280 are very expensive, the devices are amazing, The upgrade cycles 0:02:20.280 --> 0:02:22.560 are slower. It's not like ten years ago where we 0:02:22.600 --> 0:02:24.760 all bought a new phone every two years. 0:02:25.200 --> 0:02:25.440 It is. 0:02:25.800 --> 0:02:28.880 These phones are serving consumers now like PCs, for three, 0:02:29.040 --> 0:02:32.400 four and even five years at a time. So it's 0:02:32.440 --> 0:02:33.920 going to be tough. I don't think it's a surprise, 0:02:34.040 --> 0:02:37.000 but it's going to be like this because the market's mature. 0:02:37.440 --> 0:02:39.440 Unless you go out and find new customers and break 0:02:39.440 --> 0:02:40.639 into some new markets. 0:02:41.600 --> 0:02:44.640 Julie, I'd like to do some mental arithmetic with you, 0:02:44.960 --> 0:02:49.840 which you open to doing that with me? Okay, let's try. 0:02:50.080 --> 0:02:53.680 Apple said it has an installed base of two billion 0:02:53.720 --> 0:02:58.480 devices globally. They also said they had one billion paid 0:02:58.520 --> 0:03:03.080 subscribers now, but clearly there is a big pocket of 0:03:03.160 --> 0:03:07.040 Apple device uses around the world that are not paying 0:03:07.560 --> 0:03:10.560 for an Apple service. They're using what's available for free. 0:03:11.040 --> 0:03:14.080 Are you able to work out there for the path forward, 0:03:14.639 --> 0:03:17.400 how Apple and how many of those uses Apple can 0:03:17.440 --> 0:03:19.680 convert to paying for a service. 0:03:20.720 --> 0:03:22.440 Well, I think ed one of the tricks in the 0:03:22.560 --> 0:03:24.960 numbers is is right, there's a couple of things that 0:03:25.000 --> 0:03:29.000 we know about Apple users. One, they're relatively affluent compared 0:03:29.000 --> 0:03:31.760 to Android owners. And the second thing is is we 0:03:31.840 --> 0:03:34.640 know that they own multiple devices. It would not be 0:03:34.760 --> 0:03:37.600 uncommon in markets like the United States for someone to 0:03:37.600 --> 0:03:41.560 own a laptop, a tablet, a smartphone, and even a 0:03:41.600 --> 0:03:45.720 smart watch. And so we have two billion active devices. 0:03:46.000 --> 0:03:49.400 That doesn't mean we have two billion owners, right, We 0:03:49.400 --> 0:03:52.560 have fewer owners because each person owns multiple devices. But 0:03:52.680 --> 0:03:54.800 the strength in that story, I think comes back to 0:03:54.840 --> 0:03:57.000 the you know the arguments that you were making earlier 0:03:57.040 --> 0:04:00.200 about the services. The more devices I own and the 0:04:00.240 --> 0:04:02.640 more valuable the services become to me because they work 0:04:02.680 --> 0:04:07.240 across all of my devices. And yeah, I can continue 0:04:07.280 --> 0:04:10.520 down that path or we can shift here. Their services 0:04:10.520 --> 0:04:14.040 story is a very strong one, and they're laying they've 0:04:14.040 --> 0:04:16.800 been laying the groundwork for years and years for that 0:04:16.880 --> 0:04:19.839 disservices revenue to continue to build and build and build 0:04:20.520 --> 0:04:23.679 with video with audio. Right, they've got almost twenty percent 0:04:23.680 --> 0:04:25.960 of the United States paying for music paying for video. 0:04:26.120 --> 0:04:30.120 Go ahead, Julie, let's be constructive then and say what 0:04:30.200 --> 0:04:33.279 was exciting for you based on what was discussed on 0:04:33.279 --> 0:04:35.320 the call or what they put in the earning statement. 0:04:36.200 --> 0:04:38.520 So what was exciting for me? I would say one 0:04:38.680 --> 0:04:41.320 was the was the services number was up right, and 0:04:41.360 --> 0:04:44.400 that speaks to the power of the ecosystem. The second 0:04:44.480 --> 0:04:46.800 thing that's always exciting for me is looking at the 0:04:46.800 --> 0:04:49.600 wearables market. Right. You know you talked about in your 0:04:49.640 --> 0:04:53.120 opening that the smartphone is the device. It is the 0:04:53.200 --> 0:04:56.719 device that Apple counts on, and we've all been talking 0:04:56.760 --> 0:04:59.760 about will there be something that comes after the smartphone 0:04:59.760 --> 0:05:03.200 and places it and we haven't seen that yet. But 0:05:03.240 --> 0:05:05.760 what we are looking at right forty billion dollars and 0:05:05.800 --> 0:05:08.400 the wearables in the whole market. Thirty five percent of 0:05:08.560 --> 0:05:11.039 US online adults own a smart watch. Now it is 0:05:11.120 --> 0:05:15.680 outpaced fitness wearables. So you're in a vision pro that 0:05:15.720 --> 0:05:17.760 could come up in time. So I think that part 0:05:17.800 --> 0:05:20.920 of it is interesting, right, and Apple continues to lay 0:05:20.920 --> 0:05:23.680 the groundwork here. We have always said that a smart 0:05:23.680 --> 0:05:26.760 watch will have more utility and become more valuable when 0:05:26.760 --> 0:05:29.960 it's my payment mechanism, when it's my health mechanism, when 0:05:29.960 --> 0:05:32.440 it's my identity mechanism, and when we look at all 0:05:32.480 --> 0:05:35.880 of the states trying to move my driver's license, my 0:05:36.000 --> 0:05:40.039 insurance onto the Apple wallet, that translates to the watch, 0:05:40.080 --> 0:05:42.080 and those things are going to be more valuable. So 0:05:42.120 --> 0:05:44.240 that's the second thing that I would at. 0:05:45.480 --> 0:05:47.279 Well, I just want to jump in me. Let me 0:05:47.279 --> 0:05:49.120 take a moment, Juli, really quick, because I'm looking at 0:05:49.120 --> 0:05:52.400 these beautiful images of Vision Pro and it takes me 0:05:52.440 --> 0:05:55.360 back to being right exactly and being back at WW 0:05:55.560 --> 0:05:58.600 or you say it's amazing, Okay, but did we learn 0:05:58.720 --> 0:05:59.279 and try them on? 0:05:59.360 --> 0:06:02.360 You've had them all. You're like, wow, that's that's something. 0:06:03.040 --> 0:06:05.000 And then what you're one of a small group then, 0:06:05.400 --> 0:06:08.159 But did you hear anything last night that gives you 0:06:08.200 --> 0:06:11.560 a better sense of how wide the rollout of this 0:06:11.680 --> 0:06:13.000 vision pro is going to be globally. 0:06:14.040 --> 0:06:16.000 No, you know this is going to be top initially 0:06:16.000 --> 0:06:17.839 on right. You know from what I've heard, they're still 0:06:17.880 --> 0:06:20.400 you know, working through you know, getting the product ready 0:06:20.400 --> 0:06:22.839 for market. I mean they're still caring nearly like a 0:06:22.839 --> 0:06:25.039 thirty five hundred dollars price point, right, I mean that 0:06:25.120 --> 0:06:27.919 may be mid price for a computer, but it's not 0:06:28.080 --> 0:06:31.040 mid price for a consumer device. So that's I think 0:06:31.040 --> 0:06:32.599 we're going to be in a weight and see situation 0:06:32.680 --> 0:06:36.920 there in twenty twenty four. The technology impresses, the ecosystem impresses, 0:06:37.440 --> 0:06:39.080 you know what their rollout is going to be. Right, 0:06:39.080 --> 0:06:40.960 that's a different question. Well that's a bit of a 0:06:40.960 --> 0:06:41.320 wait and. 0:06:41.279 --> 0:06:45.359 See Julia Aska forres So the key analysis on Apple, 0:06:45.440 --> 0:06:48.080 those shares down three percent, the three trillion market cap 0:06:48.320 --> 0:06:50.440 crown gone, thank you very much. The other big earning 0:06:50.480 --> 0:06:54.360 story is Amazon joining us as Melissa Verdict Packview president 0:06:54.640 --> 0:06:59.000 and co founder. Amazon completely the opposite beating across the board. 0:06:59.040 --> 0:07:02.840 Investors cheering those results. What I found so interesting is 0:07:03.400 --> 0:07:07.839 the core business Amazon dot com is seeing growth, but 0:07:07.880 --> 0:07:10.120 they're also getting better at making money in the more 0:07:10.160 --> 0:07:14.960 profitable areas of the e commerce business, namingly advertising and 0:07:15.080 --> 0:07:19.600 selling services today's independent merchants. What was your sort of 0:07:19.800 --> 0:07:23.560 analysis of that part of the business. 0:07:23.720 --> 0:07:26.280 Yeah, I mean, they had their biggest earning speed since 0:07:26.400 --> 0:07:29.760 Q four twenty twenty and basically every single area they 0:07:29.880 --> 0:07:33.720 did a good job. The two drivers AWS and ADS 0:07:33.840 --> 0:07:37.880 were really up. Advertising This business was on fire this 0:07:37.960 --> 0:07:41.120 quarter over ten point six billion dollars. And we have 0:07:41.120 --> 0:07:44.680 a benchmark report at at TAKU where we look at 0:07:45.480 --> 0:07:48.880 quarter reporter return on advertising s then and that was 0:07:48.960 --> 0:07:52.760 also really strong enough this quarter, So they fow great 0:07:52.760 --> 0:07:57.440 results for advertisers with ADS. They also have implemented some 0:07:57.560 --> 0:08:01.320 new new generative AI capability and then also they have 0:08:01.720 --> 0:08:05.200 Amazon Marketing Cloud and Amazon Stream which offers a lot 0:08:05.200 --> 0:08:09.080 of great data analytics, real time optimization, and that has 0:08:09.200 --> 0:08:12.960 really helped fuel advertising spending this part. 0:08:13.040 --> 0:08:16.720 Listen, let's zero in on AWS because at the end 0:08:16.800 --> 0:08:20.760 of the day, it's the majority of operating income. What 0:08:20.920 --> 0:08:23.640 did you learn about the rest of the year, how 0:08:23.680 --> 0:08:26.680 AWS is going to continue to grow? Because if we 0:08:26.720 --> 0:08:28.640 go back to Microsoft just a week ago, we were 0:08:28.680 --> 0:08:31.000 a bit concerned about this broad market. 0:08:32.360 --> 0:08:35.800 Yeah, I mean all the eyes were on AWS this quarter. 0:08:36.160 --> 0:08:38.839 They actually were at twelve percent, which last where they're 0:08:38.880 --> 0:08:41.200 sixteen percent. So it's just been a declining kind of 0:08:41.480 --> 0:08:44.560 increase core recorder, but they still be I think the 0:08:44.559 --> 0:08:47.240 biggest challenge has been our companies. Companies have been cough 0:08:47.280 --> 0:08:50.640 cutting and that AWS has has been cut. Even our 0:08:50.720 --> 0:08:53.920 own company has been looking stringently at how do we 0:08:54.400 --> 0:08:57.760 operate most efficiently and AWS is kind of a target. 0:08:57.960 --> 0:09:00.680 But Anty Jasse spent a long time on the investor 0:09:00.720 --> 0:09:04.480 call yesterday talking about how a TOWS has stabilized, how 0:09:04.600 --> 0:09:08.640 consumer you know, companies are in we're increasing their workloads, 0:09:09.040 --> 0:09:11.080 and then he also spent a lot of time about 0:09:11.120 --> 0:09:14.720 all the generative AI capabilities that they're launching, code Whisper, 0:09:14.880 --> 0:09:16.880 Bedrock and the use cases around them. 0:09:17.600 --> 0:09:20.760 So those are and then look, yeah, go ahead, Sorry. 0:09:20.679 --> 0:09:22.319 No, I just want to jump in on that point 0:09:22.360 --> 0:09:26.640 because how Andy Jesse described that though, was Amazon taking 0:09:26.679 --> 0:09:29.439 the first few steps in a marathon. And I think 0:09:29.440 --> 0:09:32.760 we still have the question how does Amazon make money 0:09:33.280 --> 0:09:37.680 on the basically enterprise and cloud focused AI offering? Do 0:09:37.760 --> 0:09:38.679 you have an answer to that? 0:09:40.120 --> 0:09:42.800 You know that it's a tough one. Like Generative AI 0:09:42.920 --> 0:09:45.560 isn't actually a big investment from Amazon, so they're going 0:09:45.640 --> 0:09:47.679 to have to invest a lot of money and resources 0:09:47.720 --> 0:09:50.480 to build that out. But the idea is is that 0:09:50.600 --> 0:09:52.920 they can grab market share and have much more of 0:09:52.920 --> 0:09:56.240 an attractive offering because their product is so amazing, it's 0:09:56.320 --> 0:09:59.199 much more efficient, helps it helps customers use it. So, 0:09:59.640 --> 0:10:02.520 you know, think all eyes are on this. Microsoft and 0:10:02.600 --> 0:10:04.959 Google I think they were twenty six and twenty eight 0:10:05.000 --> 0:10:08.840 percent last quarter, while Amazon was twelve percent in cloud. 0:10:09.520 --> 0:10:12.280 But those are on smaller basis. But I think that's 0:10:12.400 --> 0:10:15.160 that's definitely something to look at because others are you know, 0:10:15.240 --> 0:10:16.600 is their markets You're going to grow. 0:10:17.679 --> 0:10:22.200 You know, what's the reaction, Melissa, very very quickly, what 0:10:22.360 --> 0:10:25.920 do you give Andy Jesse on his quarterly report? Car A, 0:10:26.040 --> 0:10:27.600 B or C for the job he's done. 0:10:28.679 --> 0:10:29.440 He's done an A. 0:10:29.800 --> 0:10:31.959 You know, he's all his cost cutting measures over the 0:10:32.080 --> 0:10:37.160 last two years. He's really improved efficiency. Uh, the warehouse opportunity. 0:10:37.440 --> 0:10:40.679 They've moved from a national to regionalize operation. That was huge, 0:10:40.679 --> 0:10:44.600 and they're getting shipments to customers factor that that has 0:10:44.640 --> 0:10:48.200 been a huge improvement. So I think he's done a 0:10:48.200 --> 0:10:52.280 great job and this quarter is a result of the 0:10:52.360 --> 0:10:53.200 last two years. 0:10:54.679 --> 0:10:57.079 Less aboutic PAC view president and co founder, and all 0:10:57.120 --> 0:10:59.680 things Amazon, Thank you so much. Now coming up here 0:10:59.720 --> 0:11:03.640 on blue technology, sports and streaming. What one Internet TV 0:11:03.760 --> 0:11:07.559 providers strong earnings means for the future of streaming sports 0:11:07.559 --> 0:11:09.120 on platforms. We're going to talk to the CEO of 0:11:09.120 --> 0:11:13.160 Fubo TV. Next. Another big, big story. We're watching shares 0:11:13.160 --> 0:11:17.679 of Nikola down twelve percent now. Steve Gersky who led 0:11:17.679 --> 0:11:20.040 the spack that took them public in June twenty twenty. 0:11:20.200 --> 0:11:23.440 He's been chairman since September of twenty twenty. He now 0:11:23.480 --> 0:11:25.880 is in the CEO job. Michael Loscheller is out for 0:11:25.960 --> 0:11:28.559 personal reasons. We will bring you the details later in 0:11:28.600 --> 0:11:50.880 the show. This is Bloomberg, all right, going viral. Everyone 0:11:50.880 --> 0:11:53.520 on social is talking about the FIFA Women's World Cup. 0:11:53.600 --> 0:11:56.520 Searches for the tournament trending on Google as it heats 0:11:56.600 --> 0:12:00.240 up into the knockout stages. Fierce rival Sweden and the 0:12:00.320 --> 0:12:03.040 United States will meet once again in the round of sixteen, 0:12:03.080 --> 0:12:05.800 but this time the stakes were even higher. The US 0:12:05.920 --> 0:12:09.400 is vying for a third consecutive World Cup, but were 0:12:09.400 --> 0:12:12.640 nearly eliminated by Portugal. Sweden won all of their group 0:12:12.679 --> 0:12:17.240 matches this World Cup have outscored opponents nine goals to one. 0:12:18.320 --> 0:12:20.439 All right, speaking of games and where you can find them, 0:12:20.520 --> 0:12:24.199 Fubo TV exceeded North American guidance in the second quarter, 0:12:24.440 --> 0:12:27.400 achieving three hundred and five million dollars in revenue. That's 0:12:27.440 --> 0:12:30.240 up forty one percent year on year. The internet TV 0:12:30.360 --> 0:12:36.000 providers sports first live streaming model, making progress towards profitability 0:12:36.200 --> 0:12:38.200 in twenty twenty five. Here tell us all about it, 0:12:38.240 --> 0:12:42.160 Fubo TV's CEO, David Gandler. You know, I find Fubo 0:12:42.160 --> 0:12:45.880 TVs so interesting. You know, people call you a streaming platform, 0:12:45.880 --> 0:12:50.160 but you're essentially a software platform to get gone and 0:12:50.200 --> 0:12:54.840 get other people's streams and content. What was the big 0:12:54.920 --> 0:12:57.800 driver for you in recent financial performance? 0:12:59.160 --> 0:13:01.960 Yeah, well, I think the above. The company had a 0:13:02.080 --> 0:13:03.959 very clean print. 0:13:04.679 --> 0:13:08.360 We as you said, we grew revenues up over forty percent, 0:13:08.840 --> 0:13:12.600 we grew subscribers over twenty percent. We increased our average 0:13:12.640 --> 0:13:18.840 revenue per user by thirteen percent. Ad revenue increased by 0:13:18.840 --> 0:13:21.719 about five percent year over year. So across the board, 0:13:22.559 --> 0:13:25.240 I think we've operated very well, and also we've been 0:13:25.320 --> 0:13:27.360 very measured and disciplined as it. 0:13:27.679 --> 0:13:31.360 Relates to our cost structure, and as you. 0:13:31.320 --> 0:13:34.080 Can see from our bottom line, we've improved by about 0:13:34.160 --> 0:13:37.280 forty million dollars. So everything that the team has been 0:13:37.480 --> 0:13:41.000 focused on over the last six months is certainly starting 0:13:41.040 --> 0:13:41.760 to come to fruition. 0:13:42.920 --> 0:13:46.360 Let's host about the fief of Women's World Cup. How 0:13:46.440 --> 0:13:48.400 is that driving things to you right now? 0:13:49.600 --> 0:13:53.440 Yeah, Well, as you know, our DNA is soccer, we 0:13:53.600 --> 0:13:58.240 launched Fubo as a football or soccer platform. Women's World 0:13:58.280 --> 0:14:02.800 Cup is performing quite well. To see increasing traction, double 0:14:02.840 --> 0:14:06.280 digit traction as the tournament progresses, and as you know, 0:14:06.320 --> 0:14:08.640 we're still sort of i would say, relatively early in 0:14:08.640 --> 0:14:11.960 the tournament. So we're looking forward to continuing to drive 0:14:12.040 --> 0:14:14.760 viewership for the Women's World Cup and of course the 0:14:15.760 --> 0:14:16.760 women's national team. 0:14:17.880 --> 0:14:20.960 You know we've discussed here on Bloembag technology. Frankly, like 0:14:21.080 --> 0:14:25.400 turmoil in sports TV, the industry faces a lot of 0:14:25.440 --> 0:14:31.080 long term questions on profitability but also cultural technological questions. 0:14:31.480 --> 0:14:35.280 Outline for me, David, how you see people consuming sports 0:14:35.280 --> 0:14:39.720 in the future, the platforms, the devices. 0:14:40.040 --> 0:14:41.920 Yeah, I think you hit the nail on the head. 0:14:41.960 --> 0:14:48.480 It's a very very complicated industry. With media companies and 0:14:48.960 --> 0:14:52.000 physical platforms sticks. 0:14:51.560 --> 0:14:54.320 Like Roku and Amazon, and then you have. 0:14:54.640 --> 0:15:00.400 Companies like Fubo, which are software based, platform agnostic that 0:15:00.440 --> 0:15:02.920 allow people to move from device to device in any 0:15:03.000 --> 0:15:06.600 room in the house seamlessly, giving them access to their 0:15:06.640 --> 0:15:10.760 favorite teams and other content through one single app. So 0:15:11.120 --> 0:15:15.360 I think we're positioned for growth in a space where 0:15:15.360 --> 0:15:19.320 you're going to see i would say significant competition from 0:15:19.360 --> 0:15:21.960 the likes of connected TV players that you're very familiar with, 0:15:22.000 --> 0:15:24.800 like Amazon and Roko. But at the same time, you 0:15:24.880 --> 0:15:29.080 see the increase in competition from you know, manufacturers like 0:15:29.120 --> 0:15:32.040 Samsung and Visios. So we think that we're going to 0:15:32.040 --> 0:15:34.840 continue to increase the leverage that we have as we 0:15:34.880 --> 0:15:39.160 are driving significant eyeballs across all of these platforms, and 0:15:39.680 --> 0:15:42.920 you know, again we're aggregating content for consumers and making 0:15:42.920 --> 0:15:45.960 sure that they're able to remove a lot of the 0:15:46.080 --> 0:15:48.560 friction and fragmentation that they have to deal with on 0:15:48.600 --> 0:15:49.440 a daily basis. 0:15:50.400 --> 0:15:58.960 David, to what extent does cable regional sports networks die. 0:15:57.000 --> 0:16:01.600 Well, as you know, we have differentiated versus other platforms 0:16:01.640 --> 0:16:02.840 in the United States. 0:16:02.560 --> 0:16:05.400 Due to our sort of i would say our local footprint. 0:16:05.760 --> 0:16:08.680 We believe that there is a primacy in sports, and 0:16:08.720 --> 0:16:12.520 more so even in local sports, which has been a 0:16:12.560 --> 0:16:17.400 really strong driver of viewership for us. But you know, 0:16:17.440 --> 0:16:20.160 we have relationship, a great relationship with Diamond Sports, which 0:16:20.240 --> 0:16:21.880 controls the majority. 0:16:21.760 --> 0:16:23.160 Of the original sports that I've spent. 0:16:23.200 --> 0:16:26.560 At the same time, we continue to build solid relationships 0:16:26.560 --> 0:16:29.280 with the league, particularly with Major League Baseball given that 0:16:29.360 --> 0:16:32.160 we're in season, and we've also made a number of 0:16:32.280 --> 0:16:39.200 marketing announcements with teams across basketball and baseball to continue 0:16:39.200 --> 0:16:42.680 to drive more awareness for their video. 0:16:42.440 --> 0:16:44.120 Product on our platform. 0:16:44.240 --> 0:16:47.320 So you know, at the moment, we're confident in both 0:16:47.360 --> 0:16:48.080 those directions. 0:16:49.280 --> 0:16:53.480 David quickly, the Virtual Cable Bundle isn't working for anyone else, 0:16:54.000 --> 0:16:56.440 it is for you. What's your secret? 0:16:58.080 --> 0:17:00.600 You know, I always like to say comes down to product. 0:17:00.880 --> 0:17:03.200 I think we do a really good job surfacing a 0:17:03.280 --> 0:17:04.720 lot of the content that people like. 0:17:05.080 --> 0:17:08.280 We do it in a very premium user experience. 0:17:08.320 --> 0:17:12.119 And you know, historically we've been known for really spending 0:17:12.160 --> 0:17:15.639 a lot of time developing innovative features, and you know, 0:17:15.640 --> 0:17:17.680 we've been first to market on things like four K 0:17:17.960 --> 0:17:21.800 and multiview, which is now something that other services including 0:17:21.840 --> 0:17:23.800 Apple has now launched. 0:17:24.480 --> 0:17:26.280 Actually, I think it was weeks ago that they've begun 0:17:26.320 --> 0:17:27.600 to roll that out. 0:17:27.640 --> 0:17:30.119 But now we're focused on video a I features and 0:17:30.200 --> 0:17:33.240 being able to really tap into the most exciting moments 0:17:33.880 --> 0:17:37.320 in a very personalized way, in a discrete fashion for 0:17:37.400 --> 0:17:40.160 each of our users. So that's sort of the area 0:17:40.200 --> 0:17:42.440 where I think we'll continue to focus. 0:17:42.840 --> 0:17:54.879 Right Fubo tvco Dave Agandler good to catch up Airbnb, 0:17:55.160 --> 0:17:57.679 reporting a slower pace of growth in a number of 0:17:57.760 --> 0:18:01.119 nights books. His prices for lodging remain despite that, shares 0:18:01.560 --> 0:18:04.440 now moving higher. Kind of chopped around in Friday morning session, 0:18:04.520 --> 0:18:07.560 joining us now Tom White DA David's an analyst who 0:18:07.600 --> 0:18:10.080 has a by rating on Airbnb a one hundred and 0:18:10.160 --> 0:18:13.919 sixty two dollars price target. You're billing this is a 0:18:13.960 --> 0:18:17.400 solid quarter, constructive guidance, and I think in a little 0:18:17.400 --> 0:18:19.000 bit we can talk about some of the new tech 0:18:19.359 --> 0:18:22.199 that they product that they've hinted as well. But what 0:18:22.359 --> 0:18:25.880 is the big picture story Tom for Airbnb, because we've 0:18:25.880 --> 0:18:29.600 seen how there's like Expedia, for example, give worrying signs 0:18:29.920 --> 0:18:31.400 about people's travel habits. 0:18:32.359 --> 0:18:34.760 Yeah, look, so you know Airbnb is it's not a 0:18:34.840 --> 0:18:36.880 cheap stock, it's got a high valuation, and with high 0:18:36.920 --> 0:18:41.520 valuations come pretty high expectations for earnings. But you know, 0:18:41.520 --> 0:18:44.240 I think they did just enough this earnings print to 0:18:45.600 --> 0:18:49.560 kind of get people excited still about the story, maybe 0:18:49.800 --> 0:18:52.800 toned down some of the chatter about, you know, the 0:18:52.800 --> 0:18:56.080 inevitable sort of normalization of the travel landscape and people 0:18:56.160 --> 0:18:59.439 kind of going back to traditional hotels and sort of 0:18:59.440 --> 0:19:02.160 more traditional travel patterns and maybe a little bit less 0:19:02.160 --> 0:19:04.240 of the vacation rental type stuff. 0:19:05.359 --> 0:19:06.880 So on top of that, they also. 0:19:06.680 --> 0:19:09.720 Talked about some interesting new kind of product opportunities and 0:19:09.800 --> 0:19:12.720 kind of growth unlocks, if you will, for twenty twenty four, 0:19:12.760 --> 0:19:16.880 which I think the market's responding well to. 0:19:16.160 --> 0:19:18.720 Wait, shift those heads quote your eye to mist. 0:19:19.680 --> 0:19:20.320 Well, it's funny. 0:19:20.359 --> 0:19:22.560 I mean, we've been doing a lot of work following 0:19:22.560 --> 0:19:25.680 the experiences space, sort of the tours and attractions space, 0:19:26.280 --> 0:19:28.639 so it's easy to kind of point to that as 0:19:28.680 --> 0:19:33.320 an exciting category. I think what's interesting about what Airbnb 0:19:33.400 --> 0:19:36.960 calls experiences is that it's kind of this enablement of 0:19:37.000 --> 0:19:40.400 a new product, and in a lot of ways it's 0:19:40.400 --> 0:19:45.600 similar to what Airbnb did with the inventory in its 0:19:45.640 --> 0:19:48.520 lodging accommodation right and enable this entire new class of 0:19:48.520 --> 0:19:51.679 travel product, this entire new class of accommodation product, and 0:19:51.720 --> 0:19:54.320 with experiences, they have an opportunity potentially do the same thing. 0:19:55.280 --> 0:19:58.800 But there's also other other things to do. Advertising for hosts, 0:19:58.920 --> 0:20:02.160 a way for hosts to remote themselves more in short order, 0:20:02.560 --> 0:20:04.959 that could be a nice little revenue tail win for Airbnb, 0:20:05.600 --> 0:20:09.800 and also news services for guests. So think about, you know, 0:20:09.880 --> 0:20:13.679 trying to more better professionalize, if you will, kind of 0:20:13.680 --> 0:20:15.920 the guest experience, make it a little bit more hotel 0:20:16.080 --> 0:20:18.080 like in some ways. I think those are the types 0:20:18.119 --> 0:20:21.040 of things that Airbnb is kind of thinking about testing, 0:20:21.880 --> 0:20:24.480 and hopefully we'll hear more about that come into course. 0:20:25.119 --> 0:20:29.119 Tom quickly does does Airbnb still have a technology advantage 0:20:29.480 --> 0:20:31.920 over the kind of every other offering that's out there 0:20:32.359 --> 0:20:33.879 in the short term rental space. 0:20:35.280 --> 0:20:35.520 Yeah. 0:20:35.600 --> 0:20:36.480 Look, you know, it's. 0:20:36.600 --> 0:20:39.600 Hard to point to any one single technology feature, but 0:20:40.359 --> 0:20:43.919 I think kind of the pace and the flurry of 0:20:44.240 --> 0:20:48.000 innovations and product upgrades that these guys make quarter after quarter, 0:20:48.680 --> 0:20:52.280 we think that they are still solidly ahead, particularly when 0:20:52.320 --> 0:20:54.640 it comes to kind of the host experience. They've made 0:20:54.640 --> 0:20:59.600 a lot of efforts to streamline the onboarding of hosts 0:20:59.640 --> 0:21:01.520 and for a first time host, making it a lot 0:21:01.560 --> 0:21:03.840 easier just to get your house or your room up 0:21:03.840 --> 0:21:06.480 on the platform and available to book. They've recently rolled 0:21:06.520 --> 0:21:09.480 that new futures to help host understand pricing and do 0:21:09.600 --> 0:21:13.080 analytics around what's the best level to price their inventory. 0:21:13.160 --> 0:21:16.600 So short answers, we think they're still solved the competition, 0:21:16.600 --> 0:21:17.159 but they've got. 0:21:17.000 --> 0:21:19.800 To keep walking on it all right, Tom White, Da Davidson, 0:21:19.840 --> 0:21:21.800 A long earnings week for you and I both, thank 0:21:21.840 --> 0:21:33.480 you very much. Welcome back to Bluembow Technology, Ed love 0:21:33.480 --> 0:21:36.600 loow here in San Francisco. There's a number of stories 0:21:36.600 --> 0:21:39.560 within the earnings print that we have not discussed that 0:21:39.680 --> 0:21:43.560 stick with Apple. Bring in Bloomberg's Mark German. The one 0:21:43.640 --> 0:21:46.040 idea that you and I talked about last night, Mark 0:21:46.680 --> 0:21:50.119 was Apple talking about comps with the year earlier an 0:21:50.160 --> 0:21:55.520 iPad and then also currency headwinds. You're not buying it, why. 0:21:56.720 --> 0:21:59.159 Well, First of all, in terms of the iPad decline, right, 0:21:59.200 --> 0:22:01.480 that's a twenty percent decline. It's one of the biggest 0:22:01.480 --> 0:22:04.000 declines in the history of the iPad. And what they're 0:22:04.000 --> 0:22:07.320 doing is they're trying to partially blame it on a 0:22:07.400 --> 0:22:10.680 comparison to the launch of the m one iPad Air. 0:22:11.119 --> 0:22:13.159 That iPad Air came out last March. 0:22:13.280 --> 0:22:16.840 I'm not entirely sure how many sales of the iPad 0:22:16.840 --> 0:22:19.639 that actually drove, right, so I think it's not a 0:22:19.800 --> 0:22:22.959 totally fair comparison. I think the bigger picture is the 0:22:23.000 --> 0:22:26.520 iPad compared to the latest Max is simply not as 0:22:26.520 --> 0:22:29.240 compelling as it used to be. I think more consumers 0:22:29.280 --> 0:22:32.040 are going to the Mac. The pricing is very strong, 0:22:32.200 --> 0:22:35.600