WEBVTT - Instacart Starts Trading, iPhone 15 Is a Hit in China 0:00:01.480 --> 0:00:05.160 From Markhart of Where Innovation, Money and Power Collie in 0:00:05.280 --> 0:00:06.760 Silicon Valley, NBN. 0:00:07.120 --> 0:00:11.320 This is Bloomberg Technology with Caroline Hyde and Ed loved Love. 0:00:25.800 --> 0:00:28.720 Live from Bloomberg's World headquarters in New York and Caroline High. 0:00:28.600 --> 0:00:30.400 And I'm at Lovelow here in New York City. This 0:00:30.760 --> 0:00:32.479 is Bloomberg Technology. 0:00:31.960 --> 0:00:32.479 And coming up. 0:00:32.520 --> 0:00:35.040 We have full coverage of the Instacart. Ipo is the 0:00:35.040 --> 0:00:38.160 grocery delivery and software company. He gets ready to trade 0:00:38.159 --> 0:00:39.879 this hour. Much more ahead grus. 0:00:39.800 --> 0:00:42.920 Apple seeing bright spots in China as iPhone sell out 0:00:43.000 --> 0:00:44.479 within minutes of being released. 0:00:44.680 --> 0:00:47.240 I must speak with Eric Whitman, the incoming CEO of 0:00:47.280 --> 0:00:50.199 photo and video app Visco, get his outlook for the 0:00:50.200 --> 0:00:54.240 social media company. But of course we want to really 0:00:54.360 --> 0:00:56.320 be digging in in the hot news of the day. 0:00:56.520 --> 0:00:59.840 This is largely around an IPO story Instagart, of course, 0:01:00.000 --> 0:01:03.800 finally a VC backed company coming to the markets. We're 0:01:03.800 --> 0:01:07.480 anticipating that first trade. kJ roof is here, also anticipating 0:01:07.560 --> 0:01:10.480 oil sources waiting with weighted breath. Remind us as to 0:01:10.640 --> 0:01:12.840 whether or not making money on this, because we do 0:01:12.959 --> 0:01:15.120 know that the valuation is significantly lower than in the 0:01:15.160 --> 0:01:18.160 heyday of COVID for them, sure, I. 0:01:18.080 --> 0:01:20.800 Think, you know, it depends on when they invested. I mean, 0:01:20.880 --> 0:01:24.119 if you know anyone who just invested in the Round 0:01:24.160 --> 0:01:26.480 in twenty twenty one where they were valued at thirty 0:01:26.560 --> 0:01:29.920 nine billion, they're not making money yet, if ever, but 0:01:30.760 --> 0:01:34.720 the investors that invested very early, you know, when it 0:01:34.760 --> 0:01:37.880 was just a tiny startup, then certainly you know it's 0:01:37.920 --> 0:01:41.480 turned into a multi billion dollar company, and you know, 0:01:41.600 --> 0:01:44.640 early indications show that this company is probably going to 0:01:44.720 --> 0:01:49.559 pop a significant pop, maybe like thirty percent or more, 0:01:50.000 --> 0:01:52.640 and so that would put it at or above the 0:01:52.720 --> 0:01:57.040 thirteen billion dollar valuation that the company lowered itself to 0:01:57.320 --> 0:02:01.280 last year, it's internal valuation. So the company was aware 0:02:01.480 --> 0:02:05.360 of market conditions and market realities. They knew that, you know, 0:02:05.440 --> 0:02:10.000 thirteen billion was you know, a more reasonable target more. 0:02:09.840 --> 0:02:10.639 Than a decade old. 0:02:10.680 --> 0:02:13.600 This company since it's founding, and has changed the way 0:02:13.639 --> 0:02:17.720 in which it sort of strategizes moves forward, particularly under Fijisimo, 0:02:17.800 --> 0:02:18.360 the new CEO. 0:02:18.480 --> 0:02:19.360 I spoke with. 0:02:19.320 --> 0:02:22.960 Her and discussed sort of the era of competition, and 0:02:23.400 --> 0:02:26.440 it really does feel as though figc's everyone as a 0:02:26.440 --> 0:02:29.080 competitor in many ways. They fundamentally though, say they are 0:02:29.200 --> 0:02:33.960 uncontested market leader in grocery delivery, but they can continuing 0:02:33.960 --> 0:02:36.680 to really gain share. They're looking at strengthening, in particular 0:02:36.840 --> 0:02:41.080 the competitive advantages of ultimately advertising of software. 0:02:41.200 --> 0:02:43.240 Katie, how's this company pivoted under Fiji? 0:02:44.520 --> 0:02:44.760 Sure? 0:02:44.840 --> 0:02:47.080 Yeah, So many people think of them just from the 0:02:47.120 --> 0:02:51.840 consumer facing side where they receive groceries, but obviously if 0:02:51.880 --> 0:02:54.000 you look at their revenue, they have a lot of 0:02:54.040 --> 0:02:57.640 different revenue streams. They have software they you know, to 0:02:57.680 --> 0:03:01.520 help with fulfillment. They've really strength in their advertising business, 0:03:01.680 --> 0:03:05.079 which is you know, they have so much data about 0:03:05.080 --> 0:03:07.200 consumers and what they like to buy, which is really 0:03:07.280 --> 0:03:12.440 valuable for people trying to advertise groceries. So they've done 0:03:12.480 --> 0:03:16.400 a lot of different things. And also they have subscriptions 0:03:16.639 --> 0:03:19.800 so people pay more to be regular customers and Instacart 0:03:19.840 --> 0:03:22.760 and something that's been a little controversial sometimes they charge 0:03:23.080 --> 0:03:26.160 more per the price of the item than what you 0:03:26.160 --> 0:03:29.760 would pay in store. So they're collecting revenue from customers 0:03:29.760 --> 0:03:32.840 in a lot of different ways and particularly from business partners. 0:03:33.080 --> 0:03:35.120 Now I don't know if my household is different, but 0:03:35.160 --> 0:03:38.320 actually it's my husband who generally does the grocery order 0:03:38.560 --> 0:03:40.920 by instacrat from time to time, but I spoke with 0:03:40.920 --> 0:03:43.640 Fiji about what this means is a moment. Look, there 0:03:43.680 --> 0:03:47.600 are very few women bringing companies to IPO. It's also 0:03:47.720 --> 0:03:50.440 notable that she feels that a lot of her customers 0:03:50.480 --> 0:03:53.000 are women. Seventy percent of the shoppers are women. So 0:03:53.040 --> 0:03:55.320 it's really important, she says, to build the right product 0:03:55.440 --> 0:03:57.520 and the right voices at the table. She's really been 0:03:57.560 --> 0:04:00.000 trying to lean into the amount of executives a divert 0:04:00.080 --> 0:04:02.840 us leadership team that she has Katie, but took us 0:04:02.880 --> 0:04:05.880 through that team. And what this means for well, not 0:04:05.920 --> 0:04:08.280 the founder, but certainly a female CEO to bring a 0:04:08.320 --> 0:04:10.320 company to list when we see what less than one 0:04:10.360 --> 0:04:12.240 percent of all IPOs being led by women. 0:04:13.320 --> 0:04:16.320 Yes, certainly it's a very low number of newly public 0:04:16.320 --> 0:04:18.000 companies that are holmed by a woman. 0:04:18.120 --> 0:04:19.680 But yeah, she makes a good point. 0:04:19.720 --> 0:04:22.679 I mean, a large percentage of household budgets are controlled 0:04:22.720 --> 0:04:25.039 by women. So you look at who a lot of 0:04:25.040 --> 0:04:27.640 the people are that are buying groceries, it's women, and 0:04:27.720 --> 0:04:31.200 so certainly, you know, it helps to bring that perspective. 0:04:31.400 --> 0:04:32.320 But yeah, I. 0:04:32.279 --> 0:04:35.359 Mean, you know, she's the current CEO, she's someone who's 0:04:35.520 --> 0:04:37.080 very seasoned in the business world. 0:04:37.240 --> 0:04:37.880 She worked her. 0:04:37.760 --> 0:04:40.680 Way up at Facebook, being you know, one of one 0:04:40.680 --> 0:04:44.840 of the top executives there. So she's not some you know, 0:04:45.640 --> 0:04:47.560 junior person who didn't know what she was doing. 0:04:47.680 --> 0:04:49.000 She's you know. 0:04:49.200 --> 0:04:51.200 Already well respected in the tech world. 0:04:51.520 --> 0:04:55.159 A boy she wrote her advertising prowess to this particular business. 0:04:55.279 --> 0:04:57.880 Katie roof bringing us all the inside track on what 0:04:58.000 --> 0:05:01.640 is a VC unicorn finally listing after a couple of 0:05:01.680 --> 0:05:03.719 years hiatus. So let's get a little bit more on 0:05:03.760 --> 0:05:06.120 the world of IPOs and just talk to Nick Einhorn, 0:05:06.160 --> 0:05:08.200 his director of research over at re Naissance Capital. 0:05:08.320 --> 0:05:11.560 And we're on the trajectory. We've had ARM that popped. 0:05:11.640 --> 0:05:13.719 Yes, it seems to be rolling over somewhat now, but 0:05:14.040 --> 0:05:17.680 it wasn't BC backed. Now we get the likes of Instacart, 0:05:17.800 --> 0:05:19.120 then we look to a clavio. 0:05:19.240 --> 0:05:20.920 How important are these listings. 0:05:20.600 --> 0:05:25.279 Next, Yeah, they're definitely very important. It's really been two 0:05:25.320 --> 0:05:28.640 years with almost no tech IPOs, you know, one or two. 0:05:28.640 --> 0:05:31.320 Mobile Eye was a successful one last year, but these 0:05:31.360 --> 0:05:34.200 three deals in the last week are definitely a good 0:05:34.200 --> 0:05:37.160 barometer for the help of the tech iq market. And 0:05:37.200 --> 0:05:39.360 like you said, ARM has been public before. It's a 0:05:39.480 --> 0:05:42.680 very mature company. So it's really Instacart and Clavio that 0:05:42.680 --> 0:05:46.360 I think are the better indicator for where tech appetite 0:05:46.440 --> 0:05:48.240 is amongst investors right now. 0:05:48.839 --> 0:05:50.159 What do you make of the way in which this 0:05:50.240 --> 0:05:52.440 company has been listed? It was notable that they sort 0:05:52.440 --> 0:05:54.680 of priced on a Monday. That's not usual, but they 0:05:54.680 --> 0:05:56.839 really were trying to ride on the coattails. It felt like, 0:05:56.920 --> 0:05:59.440 of arm the fact that they've got a CFO who 0:05:59.720 --> 0:06:02.159 was at Goldman leading these sorts of issuances. 0:06:02.240 --> 0:06:03.800 We know that they're well. 0:06:03.680 --> 0:06:05.560 Navigating these sorts of markets, but the fact that we 0:06:05.560 --> 0:06:07.200 could get quite a big poppet seems like at. 0:06:07.160 --> 0:06:09.040 The original at the initial trade. 0:06:09.240 --> 0:06:11.279 Are they leading too much money on the table to 0:06:11.320 --> 0:06:12.400 have a successful IPO? 0:06:13.600 --> 0:06:15.000 I don't think so. I mean, we know we're in 0:06:15.000 --> 0:06:19.040 an environment where IQ market, the IP market has not 0:06:19.080 --> 0:06:22.440 been particularly strongly. We certainly there's a lot of caution 0:06:22.520 --> 0:06:24.360 out there in the department investors, and so I think 0:06:24.400 --> 0:06:26.920 they needed to convince investors that it was a good 0:06:27.000 --> 0:06:29.880 valuation that the stop was being positioned to trade well. 0:06:30.160 --> 0:06:32.360 They got the Cornerstone investors involved as well as the 0:06:32.400 --> 0:06:35.200 private placement from PepsiCo, so kind of a lot of 0:06:35.240 --> 0:06:37.520 things to sort of help make sure the deal is 0:06:37.560 --> 0:06:41.200 to success for investors. I think part of why go 0:06:41.200 --> 0:06:42.080 ahead just. 0:06:42.000 --> 0:06:45.320 A little bit about the competitive moat or lack thereof. 0:06:45.480 --> 0:06:48.160 Nick there's been some handwringing about really how much they 0:06:48.240 --> 0:06:51.360 can fight off not only some sort of frenemies, they're 0:06:51.360 --> 0:06:54.040 customers who might be building out their own e commerce plays. 0:06:54.279 --> 0:06:57.600 The fact that they are also seeing competitive elements from 0:06:57.680 --> 0:06:59.919 Amazon as well. Who is the key competitor for. 0:07:01.480 --> 0:07:04.320 Yeah, I think there's definitely a bunch of them. Amazon 0:07:04.400 --> 0:07:06.479 has one door Dash, I think is an interesting one. 0:07:07.279 --> 0:07:09.640 Obviously they're more folks than restaurant delivery, but they've been 0:07:09.680 --> 0:07:12.920 building a grocery business over the last few years and 0:07:12.960 --> 0:07:16.080 they've taken a lot of share and kind of smaller transactions, 0:07:16.120 --> 0:07:20.000 so more impulse buys versus the weekly shop. Instacart thinks 0:07:20.040 --> 0:07:21.960 they still have a good advantage over the kind of 0:07:22.160 --> 0:07:27.240 the weekly purchasing, but DoorDash is definitely a key competitor. 0:07:27.920 --> 0:07:32.160 And then the resellers themselves, especially Walmart some of the 0:07:32.200 --> 0:07:35.280 other big ones are definitely competitors, but instacart also works 0:07:35.320 --> 0:07:38.280 with them a lot of them on the back end technology, 0:07:38.440 --> 0:07:40.720 So instagrat I think is trying to kind of shore 0:07:40.760 --> 0:07:41.440 itself up there. 0:07:43.240 --> 0:07:46.800 Nick, What have you learned about the risk tolerance that 0:07:46.920 --> 0:07:50.080 technology investors have now the IPO window broadly is open, 0:07:50.160 --> 0:07:50.600 back it up. 0:07:52.200 --> 0:07:55.040 Yeah, I think there's definitely still some caution out there. 0:07:55.040 --> 0:07:57.560 We're not in the twenty twenty twenty twenty one mindset. 0:07:58.200 --> 0:08:01.679 But one indicator we look at is the Renaissance IPO Index, 0:08:01.720 --> 0:08:04.640 which is the underlying index for our ETF that tracks 0:08:04.680 --> 0:08:07.440 the IPO market, and that's of about thirty three percent 0:08:07.560 --> 0:08:09.720 year to date versus about seventeen percent for the US 0:08:09.760 --> 0:08:12.200 and P five hundred. So I've definitely seen some of 0:08:12.240 --> 0:08:15.680 that risk appetite come back into the space over the 0:08:15.760 --> 0:08:17.800 last year. It's still not where it was, but I 0:08:17.880 --> 0:08:20.240 think we're you know, we're in the right direction for 0:08:20.320 --> 0:08:21.520 ipoctivity to increase. 0:08:22.600 --> 0:08:24.640 There's a lot of excitement, right you know, there is 0:08:24.720 --> 0:08:27.120 some sort of IPO window back. And in the background 0:08:27.160 --> 0:08:29.560 you have the FED. We started talking about China, we 0:08:29.640 --> 0:08:34.000 started talking about the macro and the economy globally. How 0:08:34.120 --> 0:08:36.440 short lived do you think this IPO window is going 0:08:36.520 --> 0:08:36.640 to be? 0:08:38.520 --> 0:08:42.280 You know, I like to be optimistic. One indicator we 0:08:42.360 --> 0:08:44.800 look at a lot is the VIX, the volatility index, 0:08:45.280 --> 0:08:50.520 and that tends to signal whether ipactivity is increasing or decreasing, 0:08:50.640 --> 0:08:53.439 and that's been coming down this year. Generally it's in 0:08:53.520 --> 0:08:56.199 the teams now, I believe, so that's usually a good 0:08:56.280 --> 0:08:59.199 level for ipoctivity, but obviously a lot can change quickly, 0:09:00.360 --> 0:09:03.960 you know, Fingers crossed, we can maintain co activity going forward. 0:09:04.559 --> 0:09:07.560 Why getting renaissance capital on is so important for. 0:09:07.600 --> 0:09:10.040 Our viewers is because you are doing that hard work 0:09:10.080 --> 0:09:13.400 of pre IPO companies, bringing that research, that transparency. Who 0:09:13.440 --> 0:09:15.760 then are you waiting for? Who's waiting in the wings? 0:09:15.800 --> 0:09:18.640 When we think we get through this week of Instacart, 0:09:18.880 --> 0:09:20.960 of Klavio, is it on Taturo? Who are the other 0:09:21.000 --> 0:09:23.080 key names that you're going to be keeping and updating 0:09:23.120 --> 0:09:23.679 your research on. 0:09:24.480 --> 0:09:27.240 Yeah, Tiro updated their perspectives recently, so we think they're 0:09:27.440 --> 0:09:30.240 likely to come soon. Birkenstock filed a few weeks ago, 0:09:30.240 --> 0:09:32.839 obviously on a tech name, but a well known consumer name, 0:09:32.960 --> 0:09:35.520 following on from some successful consumer eCos in the summer. 0:09:36.160 --> 0:09:37.839 And then beyond that, there's a lot of companies that 0:09:37.920 --> 0:09:40.040 are waiting in the wings, probably looking to see how 0:09:40.120 --> 0:09:44.560 Instacart and clavi O do this week. You know, companies 0:09:44.679 --> 0:09:48.800 like everybody from Reddit, you know down the line, lots 0:09:48.800 --> 0:09:50.760 of tech companies, lots of companies and other industries. So 0:09:50.880 --> 0:09:52.719 we think there's definitely a big backlog. It's just a 0:09:52.800 --> 0:09:54.640 question of when they think conditions will be right. 0:09:55.520 --> 0:09:57.719 All right, Nick Iahorn, Renaissance Capital, thank you for you 0:09:57.760 --> 0:09:58.959 had time. I want to get a quick check on 0:09:58.960 --> 0:10:02.200 the markets because there's other stories out there driving individual names. 0:10:02.400 --> 0:10:04.880 When we're looking at is Block. Lisa Henry is leaving 0:10:04.920 --> 0:10:08.000 the company nine years at Block, she ran the Square business. 0:10:08.120 --> 0:10:10.520 Jack Dorsey, who is already at the head of Block 0:10:10.559 --> 0:10:12.360 and chairman of the board, is going to come in 0:10:12.440 --> 0:10:14.480 and run Square, and analysts saying they see that as 0:10:14.520 --> 0:10:17.679 a positive, even though it's a longtime leader leaving that 0:10:17.800 --> 0:10:20.480 company a stock that's not done well year today, Disney 0:10:20.520 --> 0:10:23.319 down almost four percent. They're doubling their CAPEX commitment for 0:10:23.440 --> 0:10:28.120 the Parks, Entertainment and Products division to sixty billion over 0:10:28.200 --> 0:10:30.160 a ten year period. They're going to be investing in 0:10:30.200 --> 0:10:32.560 the theme parts and cruise lines business. We're getting more 0:10:32.600 --> 0:10:34.480 insight into what Bob Eiger is doing now that he's 0:10:34.520 --> 0:10:37.040 back at Disney. What's the strategy that moving the stock 0:10:37.080 --> 0:10:39.319 lower and Amazon down two point eight percent. They've just 0:10:39.320 --> 0:10:43.640 announced they're hiring two hundred and fifty thousand seasonal workers 0:10:44.000 --> 0:10:46.959 for the holiday period, particularly in logistics. This is a 0:10:47.040 --> 0:10:49.760 company that ended the June quarter had one point four 0:10:49.760 --> 0:10:53.040 to six million employees, having actually cut back carrow as 0:10:53.080 --> 0:10:55.360 you know throughout the early parts of the year. That 0:10:55.520 --> 0:10:57.160 kind of weighing on the stock. It had been down 0:10:57.160 --> 0:10:59.480 anyway amid everything that's going on this week. And by 0:10:59.480 --> 0:11:02.360 the way, pick update on ARM. We're in its third 0:11:02.440 --> 0:11:05.200 trading session, fourth trading session now, and it's trading at 0:11:05.280 --> 0:11:07.760 fifty four dollars eighty cents. We're below the price where 0:11:07.800 --> 0:11:12.000 it opened on Thursday. Interesting how short lived that was 0:11:12.080 --> 0:11:14.240 in terms of the pop that we got and then 0:11:14.280 --> 0:11:15.560 the downward trajectory there after. 0:11:15.640 --> 0:11:18.320 Carro im a little profit taking, maybe a little still 0:11:18.320 --> 0:11:20.559 about that fifty one dollars were at price, but notable 0:11:20.880 --> 0:11:23.160 as we check on these other IPOs. But ed, I mean, 0:11:23.240 --> 0:11:25.440 we've got a wild story coming up for everyone because 0:11:25.480 --> 0:11:30.240 Microsoft has uploaded confidential documents to a federal court by mistake. 0:11:30.720 --> 0:11:32.880 It's all on that website. We'll have more and what 0:11:32.920 --> 0:11:35.080 they reveal that's next to this's a Bloomberg technology. 0:11:50.360 --> 0:11:52.360 Okay, time for some talking tech, and today we talk 0:11:52.400 --> 0:11:56.360 all things Microsoft, starting with its AI research team accidentally 0:11:56.480 --> 0:12:00.480 exposing a large cachet of private data on the software 0:12:00.520 --> 0:12:03.760 development platform give GitHub. That's according to a new research 0:12:03.760 --> 0:12:07.080 from a cybersecurity firm called Whiz. The exposed data included 0:12:07.160 --> 0:12:11.960 Microsoft employees, personal computer backups, secret keys, and more than 0:12:12.080 --> 0:12:17.040 thirty thousand internal Microsoft Teams messages. Plus Amazon's hiring Microsoft's 0:12:17.040 --> 0:12:20.480 product chief Panos Panai to run the division responsible for 0:12:20.640 --> 0:12:23.920 Alexa and Echo smart speakers. That according to Bloomberg sources, 0:12:23.960 --> 0:12:27.320 pana is almost twenty year veteran who led Microsoft Windows 0:12:27.400 --> 0:12:30.800 team and was central to the company's hardware push with 0:12:30.920 --> 0:12:35.280 its surface computers. And Microsoft plans to refresh the Xbox 0:12:35.360 --> 0:12:39.120 consoles in the holiday season of twenty twenty four. That's 0:12:39.160 --> 0:12:43.880 according to a products roadmap mistakenly posted online as part 0:12:43.920 --> 0:12:47.479 of its case against the FTC. The changes are improvements 0:12:47.520 --> 0:12:51.320 to power consumption, better wireless technologies and built in storage, 0:12:51.720 --> 0:12:56.240 and a physical redesign. This is one hell of a leak. 0:12:56.360 --> 0:12:59.240 Let's get more in it with Bloomberg Cecilia Deenastasio, who's 0:12:59.280 --> 0:13:01.719 with us in new York. Let's start with how on 0:13:01.920 --> 0:13:04.360 earth that information came to light? 0:13:05.160 --> 0:13:07.880 Thank you so much for having me. We are hearing 0:13:08.160 --> 0:13:14.040 that Microsoft accidentally leaked confidential documents about plans around new 0:13:14.200 --> 0:13:18.520 Xbox consoles, refreshed Xbox consoles as soon as twenty twenty four, 0:13:19.000 --> 0:13:21.959 upcoming games that have never been announced before, in a 0:13:22.080 --> 0:13:22.960 variety of things. 0:13:23.920 --> 0:13:26.719 Can we get to the bottom of how or who? 0:13:27.160 --> 0:13:29.520 Because there must be a lot of handwringing internally today. 0:13:29.880 --> 0:13:33.319 There's a lot of hand ringing internally today, especially because 0:13:33.559 --> 0:13:37.319 of the other leak that you readtest earlier bad week. Yes, 0:13:38.120 --> 0:13:41.000 our understanding at Bloomberg a source told us that it 0:13:41.120 --> 0:13:43.920 was not the FTC behind the leak, it was Microsoft. 0:13:44.800 --> 0:13:48.959 Okay, so Microsoft potentially some trying to trail back as 0:13:49.000 --> 0:13:49.720 to who and how? 0:13:49.880 --> 0:13:51.880 But does this happen often? 0:13:51.960 --> 0:13:53.880 Do we see these sorts of leaks and this sort 0:13:53.880 --> 0:13:55.920 of integral data that actually is very hard to find 0:13:55.960 --> 0:13:58.960 in terms of price points, in terms of ultimately ip 0:13:59.120 --> 0:14:00.319 that they're going to be a revealed. 0:14:00.400 --> 0:14:04.240 Gaming companies are famously very very secretive about upcoming plans 0:14:04.280 --> 0:14:06.880 around these things, and this is the biggest leak in 0:14:07.080 --> 0:14:07.880 Xbox history. 0:14:08.280 --> 0:14:11.120 It's fair to say Okay, I get it, there's a leak, 0:14:11.600 --> 0:14:14.439 leaks happen. The big news is we're getting a mid 0:14:14.559 --> 0:14:18.520 cycle Xbox console refresh, which just doesn't happen like and 0:14:18.640 --> 0:14:21.120 full discoasure. As Alreadien says, I'm a PS five guy 0:14:21.240 --> 0:14:23.400 right now, what do we know about this new Xbox? 0:14:23.600 --> 0:14:25.760 I have to say, personally, I'm shocked because in June 0:14:26.440 --> 0:14:30.080 Xbox head Phil Spencer told me that he didn't see 0:14:30.360 --> 0:14:33.360 an imperative to have a mid cycle refresh, and so 0:14:33.480 --> 0:14:35.320 we're kind of trying to reconcile. 0:14:35.240 --> 0:14:36.680 This competing information now. 0:14:37.720 --> 0:14:40.560 But it is typical for after four years a console 0:14:40.720 --> 0:14:43.720 to come out with a refresh that has increased storage, 0:14:43.800 --> 0:14:45.760 like you were saying, and things along those lines. 0:14:45.840 --> 0:14:48.000 So I guess bigger pictures. We did get some insight 0:14:48.120 --> 0:14:53.120 into Microsoft's video game strategy. What did we learn. 0:14:53.720 --> 0:14:56.680 We learned that Xbox is planning in mid cycle refresh 0:14:56.720 --> 0:14:58.960 as soon as twenty twenty four and a new console 0:14:59.080 --> 0:15:01.840 as soon as two thousand in twenty eight. Of course, 0:15:01.920 --> 0:15:04.440 these plans are subject to change, as everything in the 0:15:04.480 --> 0:15:07.840 gaming industry can be very volatile all the time. We 0:15:08.000 --> 0:15:11.960 learned about updates to beloved games, including from Bethesda, which 0:15:12.000 --> 0:15:15.320 is part of Xenomax, which Microsoft acquired as well. We 0:15:15.720 --> 0:15:21.360 learned about discussions around acquiring and Nintendo, which we knew 0:15:21.400 --> 0:15:23.480 that those discussions had happened. We didn't know that the 0:15:23.680 --> 0:15:26.920 board was interested as well until the recent weeks. 0:15:26.960 --> 0:15:30.440 This morning, I mean in is macro context where we're 0:15:30.480 --> 0:15:33.760 thinking of a federal reserve tomorrow, eyeing inflationary pressures. I'm 0:15:33.840 --> 0:15:35.720 interested that price points aren't going to be going up 0:15:35.880 --> 0:15:37.880 in my twenty twenty four it is. 0:15:37.920 --> 0:15:40.320 Surprising because the price points on video games have gone 0:15:40.360 --> 0:15:44.400 up from sixty dollars to seventy dollars. But consoles are 0:15:44.800 --> 0:15:48.080 you know, something that are there are a luxury items. 0:15:48.080 --> 0:15:52.160 They're very expensive, and especially when gaming PCs are becoming 0:15:52.240 --> 0:15:54.920 increasingly popular and eating up more and more of kind 0:15:54.960 --> 0:15:58.240 of what people would spend on consoles. 0:15:58.280 --> 0:16:00.600 You know, it makes sense, sense. 0:16:00.680 --> 0:16:03.880 Makes sense. Bloomberg Cecilia Diannastasio on set here in New York. 0:16:03.960 --> 0:16:14.280 Thank you know. Apple's iPhone fifteen is off to a 0:16:14.320 --> 0:16:17.000 strong start in China. The new iPhone sold out on 0:16:17.400 --> 0:16:20.960 China's team all within a minute of becoming available, according 0:16:21.000 --> 0:16:22.640 to the site's operator. For more, I'm going to bring 0:16:22.640 --> 0:16:25.640 a Bloomberg Intelligence senior tech analyst and a rag Rana 0:16:25.960 --> 0:16:27.760 and Arag you and I and Caroline have been talking 0:16:27.760 --> 0:16:30.280 about China for a week now. When it comes to Apple, 0:16:30.400 --> 0:16:32.800 what is your first impressions of how the next gen 0:16:32.880 --> 0:16:33.520 handsets doing. 0:16:34.800 --> 0:16:35.760 No, it's a good news. 0:16:35.840 --> 0:16:38.600 And as we have talked before, China is the biggest 0:16:38.600 --> 0:16:40.360 wildcard for Apple over. 0:16:40.240 --> 0:16:41.160 The next twelve months. 0:16:41.200 --> 0:16:43.520 So any news like this is good news for Apple. 0:16:43.920 --> 0:16:46.320 There's iPhone sales, which do you know, all of us 0:16:46.440 --> 0:16:50.560 know will dictate Apple's over all financial performance in the neodom. 0:16:51.480 --> 0:16:56.040 So in the June quarter, Apple went from a three 0:16:56.080 --> 0:16:58.720 percent year one year decline to an eight percent hotline growth. 0:16:58.760 --> 0:17:01.120 And what Tim Cook said was it with switches, and 0:17:01.200 --> 0:17:04.040 my understanding of switches, it's somebody buying an iPhone for 0:17:04.080 --> 0:17:08.600 the first time or transferring from a domestic brand. How 0:17:08.680 --> 0:17:11.600 do you see the technology upgrades on this next gen 0:17:11.640 --> 0:17:14.240 iPhone fifteen being a part of that switching story. 0:17:15.480 --> 0:17:17.840 Yeah, I mean our analysts in Asia already told me 0:17:17.920 --> 0:17:20.200 a while ago that the camera upgrade is such a 0:17:20.240 --> 0:17:22.200 big deal that it's going to drive a lot of 0:17:22.359 --> 0:17:25.600 enthusiasts to go out and get the Promacs model, which 0:17:25.680 --> 0:17:28.679 is what excited us most during the event that actually 0:17:28.760 --> 0:17:31.480 the pricing for that went up, So overall, I think 0:17:31.520 --> 0:17:34.480 this is a good thing because people are upgrading for 0:17:34.560 --> 0:17:37.240 the new camera. It's going to drive ASP's, it's going 0:17:37.320 --> 0:17:40.360 to drive new units, So I think it's good news 0:17:40.400 --> 0:17:41.040 for Apple at. 0:17:40.920 --> 0:17:44.880 This point, aer can you line up where you take 0:17:44.960 --> 0:17:47.720 the most signals from when, particularly when it comes to China, 0:17:47.840 --> 0:17:49.640 we're all trying to read those tea LEAs at the moment, 0:17:49.720 --> 0:17:52.800 and yes, we've got team all they're selling out within 0:17:52.880 --> 0:17:53.440 a minute or so. 0:17:53.760 --> 0:17:55.080 But then Barklays is saying. 0:17:54.880 --> 0:17:57.080 Early pre order data from China continues to point to 0:17:57.200 --> 0:18:00.720 difficult iPhone fifteen cycle negative mix shift. 0:18:01.520 --> 0:18:03.480 Where do you go for the signals that are the 0:18:03.560 --> 0:18:05.560 right read so, you know. 0:18:05.640 --> 0:18:07.000 One of the things you have to think about. I 0:18:07.040 --> 0:18:09.200 think about it from Apple's point of view. They do 0:18:09.359 --> 0:18:11.200 want to ship these things if there are are orders. 0:18:11.240 --> 0:18:13.280 So when we look at lead times and we track 0:18:13.359 --> 0:18:15.800 it every day, you know, sometimes it's very difficult to 0:18:15.840 --> 0:18:18.240 say whether it is because of the changing mixshift of 0:18:18.359 --> 0:18:21.520 the model with some supply issues, or is it just 0:18:21.600 --> 0:18:24.040 a demand. I think this is why we need several 0:18:24.119 --> 0:18:26.760 more weeks of data before we can you know, comfortably 0:18:26.840 --> 0:18:29.359 say that apples sales are going to be healthy over 0:18:29.400 --> 0:18:32.560 the next twelve months because December quarter is the big 0:18:32.640 --> 0:18:36.399 quarter for you know, all consumer electronics and apples, you know, 0:18:36.480 --> 0:18:37.359 no different there. 0:18:37.359 --> 0:18:39.800 Yeah, augustantly overweight price target two hundred and fifteen. They 0:18:39.840 --> 0:18:41.800 two are saying that actually the China day points are 0:18:41.840 --> 0:18:44.800 better than expected. So we try to dissect where to 0:18:44.840 --> 0:18:47.959 get the real takeaway. Can you update a little bit 0:18:48.040 --> 0:18:50.760 on your warries and risks around China? It felt like 0:18:51.000 --> 0:18:54.200 the narrative of last week after their event, what then 0:18:54.520 --> 0:18:56.480 of now are you getting any more signals on just 0:18:56.560 --> 0:18:59.560 the sturdiness of consumer and indeed government purchases. 0:19:00.560 --> 0:19:02.720 Yeah, I think Mark Gouman, you know really, you know, 0:19:02.880 --> 0:19:04.480 I talk to him about it, and it really one 0:19:04.520 --> 0:19:06.640 of the things you have to remember that last time 0:19:06.720 --> 0:19:10.560 something like this happened was increased rise of nationalism in China. 0:19:10.920 --> 0:19:13.000 It did have a negative impact on Apple. So we 0:19:13.160 --> 0:19:15.520 just want to make sure that because what the government 0:19:15.640 --> 0:19:18.000 said for you know, the government falls, which is not 0:19:18.400 --> 0:19:20.840 new news, it's been around for a while, but it 0:19:21.000 --> 0:19:23.160 was splashed around quite a bit that it didn't change 0:19:23.200 --> 0:19:26.080 the consumer behavior, and so far it looks like things 0:19:26.119 --> 0:19:28.359 are on track for Apple, but again we need a 0:19:28.400 --> 0:19:30.959 lot more data to be comfortable for the next financial year. 0:19:31.119 --> 0:19:34.040 You know, just reflecting on being at Cubatino last week, 0:19:34.119 --> 0:19:35.840 and there was a lot of emphasis on the color 0:19:35.880 --> 0:19:39.399 selection for the Pro, the higher EnPro and Promax because 0:19:39.440 --> 0:19:42.639 in China, red and gold resonate with the consumer. We 0:19:42.760 --> 0:19:45.680 didn't get that. But the Chinese consumer also tends to 0:19:45.760 --> 0:19:50.520 favor the latest technology, you know, powerful processing, next generation camera. 0:19:51.200 --> 0:19:54.359 In your analysis, Anak, do you see a differentiation between 0:19:54.440 --> 0:19:57.200 consumer behaviors in North America, Europe, China? 0:19:58.160 --> 0:20:00.560 Oh, it's massive behavior. I mean, gold Wild do really 0:20:00.640 --> 0:20:04.520 well in India, Middle East. I mean, I can you know, 0:20:04.600 --> 0:20:06.840 think of a few more countries. You know, I personally 0:20:06.840 --> 0:20:08.760 I'm going to get the blue one next on Friday, 0:20:08.840 --> 0:20:10.960 but I know a lot of people who would want 0:20:10.960 --> 0:20:11.680 the red and the gold. 0:20:12.320 --> 0:20:14.119 If anyone wants to know, I would definitely be a 0:20:14.200 --> 0:20:16.240 gold kind of a gal. But I then go and 0:20:16.280 --> 0:20:18.320 buy a really ugly, clunky thing to cover. 0:20:18.200 --> 0:20:19.680 It all up so that I don't broke it. 0:20:20.320 --> 0:20:24.040 Ara Rana, thank you enjoy your blue version Bloomberg Intelligence. 0:20:24.119 --> 0:20:26.400 And I mean ed the fact that you just said 0:20:27.359 --> 0:20:30.560 it's a week ago. Oh, just over that your own Kupertino. 0:20:30.720 --> 0:20:34.400 Time just flies. But this really was the purpose point 0:20:34.520 --> 0:20:36.880 that we were hearing from Apple. So the new unveil 0:20:36.960 --> 0:20:38.359 and as to whether or not, it seems as though 0:20:38.359 --> 0:20:39.679 the mixed signals are pointing. 0:20:39.440 --> 0:20:40.159 That it is a positive. 0:20:40.320 --> 0:20:42.879 It's why going over the technology so important. You know. 0:20:42.960 --> 0:20:46.159 The story was the Chinese government saying to government agencies 0:20:46.240 --> 0:20:49.359 and state enterprises, tell your staff to leave their iPhone 0:20:49.400 --> 0:20:52.080 at home. Get a Chinese brand. With that impact the 0:20:52.160 --> 0:20:55.000 psychology of the Chinese consumer at large, Well, that's what 0:20:55.080 --> 0:20:57.560 we just talked about. No, they like color preferences, they 0:20:57.640 --> 0:21:00.800 want the latest technology five years data tell us. 0:21:00.800 --> 0:21:02.280 That, so foldable phones. 0:21:02.640 --> 0:21:04.760 There's a great piece on the terminal about the lack 0:21:04.800 --> 0:21:06.960 of foldable coming from up Yeah, it was funny. 0:21:06.960 --> 0:21:08.520 So when we're in Google I earlier in the year, 0:21:08.520 --> 0:21:10.680 they came out with pixel fold and they had really 0:21:10.760 --> 0:21:13.480 high compute and then we started talking about running AI 0:21:14.640 --> 0:21:17.800 generative AI locally on devices. For me, it's just a 0:21:17.880 --> 0:21:20.639 feel in the hand thing, you know, clunkiness of folding 0:21:20.720 --> 0:21:23.080 the phone. But maybe that resonates in China too. 0:21:23.560 --> 0:21:25.560 And we know that the price point resonates in China 0:21:25.600 --> 0:21:27.280 also resonates for the bottom line and the fact that 0:21:27.320 --> 0:21:29.159 this is going to be driving up average selling prices, 0:21:29.240 --> 0:21:32.680 so certainly some price targets still on the high side 0:21:32.680 --> 0:21:42.719 for Apple well combat to bluemot technology. I'm Caroline had 0:21:42.760 --> 0:21:43.240 in neil my. 0:21:43.240 --> 0:21:45.199 Med love Loo in San Francisco. If we're not you're here, 0:21:45.320 --> 0:21:50.000 Oh my goodness, how how did I get here? Let's 0:21:50.040 --> 0:21:52.359 move on quickly and cover that with markets. Na's that 0:21:52.480 --> 0:21:55.560 one hundred tech leading losses in public markets. Remember, the 0:21:55.600 --> 0:21:58.480 FED makes its decision in twenty four hours time. Widely 0:21:58.560 --> 0:22:02.240 expected to hold rates follow rates because they discount the 0:22:02.280 --> 0:22:05.119 future values of present cashloads the other way round. But 0:22:05.200 --> 0:22:07.119 also if your private market investor and you're looking at 0:22:07.160 --> 0:22:10.199 public proxies, if you're paying attention as well Bitcoin, as 0:22:10.240 --> 0:22:12.800 you've been discussing in the past week, Caroline continues to 0:22:12.920 --> 0:22:14.560 kind of march a little bit higher despite the risk 0:22:14.640 --> 0:22:16.760 of sentiment that we are seeing. But look at yields 0:22:16.760 --> 0:22:18.480 creep higher as well. I think all eyes on the 0:22:18.520 --> 0:22:21.200 FED despite what's happening in other areas of the public markets. 0:22:21.240 --> 0:22:22.920 In the tech sector, Yeah, we've got to go micro 0:22:23.000 --> 0:22:26.200 as all eyes on one particular IPO today we're awaiting 0:22:26.520 --> 0:22:29.720 where at trades instacart our own Sinalibus suckers, of course. 0:22:29.640 --> 0:22:31.080 Keeping your breast to where we're going to be going. 0:22:31.119 --> 0:22:33.120 From a price pat it looks like it's going to pop. Yes, 0:22:33.359 --> 0:22:34.520 we are waiting for it to open. 0:22:34.600 --> 0:22:37.560 And then it's indicated to price around forty two dollars 0:22:37.720 --> 0:22:40.399 a share. That makes it more than a forty percent 0:22:40.560 --> 0:22:42.800 pop if it makes it at the open. It also 0:22:42.880 --> 0:22:46.040 gives it a valuation upon the open at about fourteen 0:22:46.200 --> 0:22:49.480 billion dollars that is not only above where it expected 0:22:49.560 --> 0:22:51.760 to be valued at out of the gate, it also 0:22:51.920 --> 0:22:54.960 is above it's a most recent funding round when it 0:22:55.080 --> 0:22:58.200 was valued and slashed its own internal valuation to closer 0:22:58.240 --> 0:23:01.200 to thirteen billion dollars. And so Pondie Ipo Pop, you 0:23:01.280 --> 0:23:03.560 are getting a little bit of boosted valuation. It still, 0:23:03.600 --> 0:23:05.920 as we've been talking about, a far cry from that 0:23:06.000 --> 0:23:08.680 thirty nine billion dollar valuation that it was able to 0:23:08.800 --> 0:23:12.400 inc in the heydays of the pandemic for Instacart when 0:23:12.440 --> 0:23:15.240 a lot of people were using the delivery app. Now 0:23:15.320 --> 0:23:16.800 I know you and I will talk about this later, 0:23:16.960 --> 0:23:19.920 but the cell that Instacart might have as an AI 0:23:20.119 --> 0:23:22.840 focused company, it doesn't even meet what you would get 0:23:22.880 --> 0:23:25.280 from Klavio as well, that is pitching the same type 0:23:25.320 --> 0:23:28.159 of idea here and is expected to price tonight. In 0:23:28.480 --> 0:23:33.199 Instacart's wake. You had also Klavio up their IPO pricing 0:23:33.400 --> 0:23:35.760 range as well. Let's see if they're able to meet that, 0:23:36.040 --> 0:23:38.879 especially because the markets they're meeting are a little more 0:23:39.000 --> 0:23:41.680 muted than the markets we saw last week that ARM 0:23:41.760 --> 0:23:42.760 had listed into. 0:23:43.160 --> 0:23:45.240 Yeah, it's interesting that ARM is coming off of those 0:23:45.359 --> 0:23:46.159 previous highs. 0:23:46.240 --> 0:23:47.520 But ARMS big cell. 0:23:47.760 --> 0:23:51.359 It's an artificial intelligence empowering company. And I actually spoke 0:23:51.359 --> 0:23:55.280 to Fijisimo about really the AI pitch that she's trying 0:23:55.320 --> 0:23:58.520 to take to the investor at the moment, and she's saying, look, 0:23:58.520 --> 0:24:01.399 with generative AI in particular, really big opportunity to make 0:24:01.440 --> 0:24:04.000 the grocery even more convenient. We have all the data, 0:24:04.119 --> 0:24:07.320 they've got the expertise that making that experience happen. But 0:24:07.359 --> 0:24:09.840 look it does take time, Shanali. But that's sort of 0:24:09.920 --> 0:24:11.960 their mode, isn't it. The fact that they've got this 0:24:12.600 --> 0:24:15.119 proprietary data that others aren't going to be able to have. 0:24:15.600 --> 0:24:17.640 That's going to be a tough sell though. To remind 0:24:17.840 --> 0:24:20.680 people to go with them over the competition, particularly not 0:24:20.800 --> 0:24:24.800 only for an investor that's institutional, but a retail investor 0:24:24.840 --> 0:24:25.919 that they're pitching to right now. 0:24:26.200 --> 0:24:27.920 Yeah, it's a great question, and you're talking about the 0:24:28.040 --> 0:24:32.000 retail investor. Remember this is the first IPO underwritten by 0:24:32.280 --> 0:24:35.119 so Far, which is one of the secondary underwriters in 0:24:35.200 --> 0:24:38.560 this particular ipo. We've seen so Far, for example, serve 0:24:38.560 --> 0:24:42.000 as an allocator to almost a dozen IPOs besides this one. 0:24:42.080 --> 0:24:44.280 But to the point you're making, this is the idea 0:24:44.280 --> 0:24:46.639 of bringing more retail interest in as far as the 0:24:46.720 --> 0:24:49.600 moat goes. You're right, they are pitching their own data 0:24:49.640 --> 0:24:52.760 as it pertains to and their client base here. But 0:24:52.880 --> 0:24:55.200 there is a general concern about what the margins for 0:24:55.280 --> 0:24:57.760 this business looks like, and how fast they can keep 0:24:57.840 --> 0:25:00.960 diversifying bringing in kind of that ad money as well, 0:25:01.320 --> 0:25:03.920 and what the broader economic environment looks like. Throughout the 0:25:03.960 --> 0:25:06.880 programming today, we've been talking about how much the consumer 0:25:06.960 --> 0:25:09.960 can come under pressure with some of these inflationary forces. 0:25:10.000 --> 0:25:13.359 Still at the fore, I would say Instacart Playbo hitting 0:25:13.400 --> 0:25:16.720 the market right before that big bed decision. Timing is 0:25:17.040 --> 0:25:19.800 everything in the IPO market. And remember we do have 0:25:19.880 --> 0:25:22.639 a scenario here in which even with the market flat 0:25:22.720 --> 0:25:25.600 to lower for the SAP five hundred Nasdaq and the 0:25:25.760 --> 0:25:28.000 SOCK Semiconductor Index, you still. 0:25:28.040 --> 0:25:29.719 Have these IPO pops. 0:25:29.960 --> 0:25:32.160 It just tells you how much is that steak here 0:25:32.720 --> 0:25:36.560 for investors who want a play at new shares as 0:25:36.640 --> 0:25:39.960 well as remember the question at beginning all day, who wins? 0:25:40.359 --> 0:25:43.680 Think about Sequoia D one, which will still have a 0:25:43.880 --> 0:25:47.360 very significant stake in this post IPO, as well as 0:25:47.440 --> 0:25:50.919 some of the founders themselves of these large investment firms 0:25:51.040 --> 0:25:54.399 Dan Sundeim personally, we'll have a steak in Instacart out 0:25:54.440 --> 0:25:55.280 of the listing. 0:25:55.600 --> 0:25:57.880 Well said, I mean, we're looking at the ticking higher 0:25:57.920 --> 0:26:00.160 in terms of the indication price now at forty two 0:26:00.240 --> 0:26:03.960 dollars sixty one Shinali. The fact that they have like 0:26:04.200 --> 0:26:08.440 arm taken that playbook of having a lot of intentional 0:26:08.640 --> 0:26:10.840 investors who are going to be sticking around taking a 0:26:10.920 --> 0:26:13.439 huge amount. I think about two thirds of the overall 0:26:13.480 --> 0:26:16.520 shares that are going on offer already been allocated to 0:26:16.640 --> 0:26:19.400 some of these lynchpin investors, the Petsicos of this world. 0:26:19.440 --> 0:26:21.560 What did you make of that sort of new tactic 0:26:21.640 --> 0:26:24.320 that we have going on Yeah, it's interesting limiting. 0:26:24.080 --> 0:26:27.560 The flow, drumming up interests, PepsiCo being involved from the beginning. 0:26:27.800 --> 0:26:30.600 Clavio has a different set of cornerstone investors, more along 0:26:30.640 --> 0:26:32.959 the lines of the investment community, the lines of an alliance. 0:26:33.000 --> 0:26:35.879 Bernstein involved early on. But there seems to be the 0:26:35.960 --> 0:26:39.560 Goldman Sacks playbook, doesn't it. They are leading this round 0:26:39.760 --> 0:26:42.560 of IPOs. They were one of the lead underwriters on ARM, 0:26:42.800 --> 0:26:46.120 they are lead on the Instacart, they are lead on Klavio. 0:26:46.480 --> 0:26:49.040 It is a big moment for Goldman Sacks in this 0:26:49.280 --> 0:26:52.639 wave of tech listings, Instacart, CFO as well. We know 0:26:52.840 --> 0:26:57.240 had that Goldman sax Alma mater that expertise over there 0:26:57.440 --> 0:26:59.800 in terms of what it means to take a company public, 0:27:00.200 --> 0:27:03.680 especially in the world of TMT, technology, media and telecom. 0:27:04.240 --> 0:27:06.200 That's also, by the way, the relationship that brought in 0:27:06.280 --> 0:27:09.159 so far with Anthony Nodo formerly in that world at 0:27:09.200 --> 0:27:11.560 Goldman Sachs as well. The new kids in town are 0:27:11.640 --> 0:27:14.919 David Ludwig, who leads Global Equity capital Markets over at 0:27:14.920 --> 0:27:18.680 Goldman Sachs. Kem Posnett, who recently took over as head 0:27:18.680 --> 0:27:22.720 of TMT at Goldman Sachs. Big moments for them, Armor 0:27:22.840 --> 0:27:26.040 was of success. Instacart is looking like it's about to 0:27:26.119 --> 0:27:29.080 be more than forty percent of a pop on day 0:27:29.119 --> 0:27:32.840 one even in a down market and Claveyo tonight trifecta. 0:27:33.520 --> 0:27:35.800 I mean yeah, all eyes on Nick Giovanni, who's going 0:27:35.880 --> 0:27:38.360 to be waiting with baited breath. Of course, the CFO 0:27:38.480 --> 0:27:41.639 of in Stacat, who is overheading DMT globally for Goldman 0:27:41.800 --> 0:27:44.080 up until twenty twenty on Shanali. Always so great to 0:27:44.119 --> 0:27:45.600 get your perspective when it comes to the ins and 0:27:45.720 --> 0:27:48.000 outs of what's happening on Wall Street and the people 0:27:48.520 --> 0:27:49.720 behind these sorts of deals. 0:27:50.080 --> 0:27:51.960 We also know that people that have been backing these. 0:27:51.880 --> 0:27:54.040 Sorts of deals are of course the bench capital community. 0:27:54.080 --> 0:27:56.640 And let's time therefore dig into VC Spotlight. We're taking 0:27:56.680 --> 0:27:59.959 a look at well overall the IPO pipeline, the excite 0:28:00.200 --> 0:28:03.480 that breeds for certain players such as M thirteen. And 0:28:03.560 --> 0:28:05.800 we've got the General Partner joining us about some of 0:28:05.840 --> 0:28:09.400 the areas they've been allocating to of late. Latif peruccha 0:28:09.680 --> 0:28:12.320 In leads the firms investing strategy focusing on digital health, 0:28:12.359 --> 0:28:15.160 particular on fintech, you've got what nine hundred million dollars 0:28:15.200 --> 0:28:19.119 in assets under management and just for a moment, the IPO, 0:28:19.440 --> 0:28:22.000 the excitement, the exuberance of some companies that are VC 0:28:22.160 --> 0:28:23.280 backed becoming public. 0:28:23.359 --> 0:28:25.400 What does that mean when you're writing a series A check. 0:28:25.560 --> 0:28:29.399 Thanks Caroline, thanks Ed for having me on. It's incredibly exciting. 0:28:29.520 --> 0:28:33.119 I mean to unlock the IPO markets really then unlocks 0:28:33.160 --> 0:28:35.720 the growth market, which as an early stage investor, ultimately 0:28:35.840 --> 0:28:39.840 that's what we're looking for. And there's Instacart, Clavios tonight, 0:28:40.320 --> 0:28:42.560 and then we think there's a significant pipeline of really 0:28:42.600 --> 0:28:46.000 great companies that will unlock after that. So it's very 0:28:46.080 --> 0:28:50.520 exciting and the best companies go public and so we 0:28:50.760 --> 0:28:53.680 are always as vcs investing in early stage looking for 0:28:53.800 --> 0:28:56.120 those generational companies to go IPM. 0:28:56.400 --> 0:28:58.240 Is it really that much of a domino effect? So 0:28:58.320 --> 0:29:01.600 you see several companies go public. If you are a 0:29:01.760 --> 0:29:07.000 startups done series ABCD through M, does that open up 0:29:07.000 --> 0:29:09.040 the opportunity then for you to do a big growth 0:29:09.120 --> 0:29:12.800 stage round because there's more money going into public markets 0:29:12.840 --> 0:29:13.160 as well. 0:29:13.600 --> 0:29:15.680 It all trickles from the public market, and so the 0:29:15.760 --> 0:29:19.840 growth investors that fund our companies need to return capital 0:29:19.920 --> 0:29:21.880 to their investors. We all have to return capital to 0:29:21.920 --> 0:29:24.880 our investors. And the way that the momentum will work 0:29:25.000 --> 0:29:27.240 is for the IPOs that will start to unmarck, they'll 0:29:27.240 --> 0:29:30.280 start to return capital, and then they can invest that 0:29:30.840 --> 0:29:33.360 new fresh funds into our companies, which is going to 0:29:33.400 --> 0:29:36.080 be required ultimately to get them to the scale that 0:29:36.160 --> 0:29:38.320 a clavier or Instacra is today. 0:29:39.040 --> 0:29:42.240 I'm fascinated by valuations at all end of the curve 0:29:42.360 --> 0:29:44.960 for startups. You know, those names that have gone public 0:29:45.040 --> 0:29:48.800 in this past week really emphasized artificial intelligence as if 0:29:48.880 --> 0:29:50.880 it was going to help them out. Is the same 0:29:50.960 --> 0:29:53.720 thing happening at the other end in early stage where 0:29:54.080 --> 0:29:58.440 you attach AI to your domain name, your valuation goes up. 0:29:59.480 --> 0:30:03.160 That happens, and we're very sensitive to that as a firm. 0:30:03.520 --> 0:30:06.840 You know, we really believe in hype cycles and being 0:30:06.960 --> 0:30:09.400 very sensitive to where we are in high cycles. But 0:30:09.520 --> 0:30:12.400 high cycles can be a good thing in AI. You know, 0:30:12.680 --> 0:30:15.640 it allows for boardroom conversations and budgets to open up, 0:30:15.680 --> 0:30:18.120 and that can really help our companies. But we're very 0:30:18.200 --> 0:30:23.320 sensitive to the valuations that early stage companies can attach 0:30:23.760 --> 0:30:26.240 and making sure that the founders that are building these 0:30:26.280 --> 0:30:29.440 companies really have domain expertise in AI and have a 0:30:29.520 --> 0:30:31.960 clear path to show how the AI is going to 0:30:32.520 --> 0:30:35.640 enable some product or service that can service and customers. 0:30:35.800 --> 0:30:38.040 And everyone's been trying to push that forward, like where 0:30:38.240 --> 0:30:42.000 is the disruption coming? Which industry groups legal clear healthcare 0:30:42.040 --> 0:30:43.600 has been time and time again referenced. 0:30:43.680 --> 0:30:45.000 Is that something that you're focusing in on. 0:30:45.160 --> 0:30:46.960 Yeah, it's a big focus for our firm and for 0:30:47.080 --> 0:30:49.520 me personally. If you look at healthcare in this country, 0:30:49.600 --> 0:30:52.160 it's four trillion to spend nearly twenty percent of GDP 0:30:52.800 --> 0:30:54.560 and I think we're really still in the very early 0:30:54.680 --> 0:30:57.920 days of the digital transformation. So we've at the firm 0:30:58.040 --> 0:31:02.400 invested in really innovative care delivery models around new areas 0:31:02.440 --> 0:31:05.800 of medicine like form which is a market leader, and obesity, 0:31:06.360 --> 0:31:08.560 and we've spent a lot of time now focusing in 0:31:08.720 --> 0:31:12.000 on how can you use AI to really support clinicians 0:31:12.040 --> 0:31:16.360 and health systems to drive better care and ultimately better 0:31:16.440 --> 0:31:18.960 outcomes for patients. And that's really always our end goal 0:31:19.040 --> 0:31:23.160 is how can you deliver better outcomes and simultaneously rip 0:31:23.520 --> 0:31:24.560 costs out of the system. 0:31:24.880 --> 0:31:27.800 I mean, we had a VC on from underscoore VC 0:31:28.000 --> 0:31:31.480 yesterday based in Boston. We're thinking of Fujisimo and her 0:31:31.520 --> 0:31:35.160 team and Instacart celebrating in San Francisco today. Doesn't matter 0:31:35.240 --> 0:31:37.960 where these founders, where these businesses are being cultivated, being born, 0:31:38.120 --> 0:31:40.200 how are you getting access to all of them? 0:31:41.680 --> 0:31:44.080 Founders can be built, you know, anywhere. We will go 0:31:44.120 --> 0:31:47.080 anywhere to find the best founders. Ultimately, what we're focused 0:31:47.120 --> 0:31:49.760 on is founders that have real domain expertise. And so 0:31:50.080 --> 0:31:51.800 I'd love to give you an example of a company 0:31:51.880 --> 0:31:56.320 we just announced called kar Gnostics, which is providing localized 0:31:56.360 --> 0:31:59.480 AI for health systems and so it ingests the healthcare 0:31:59.560 --> 0:32:02.560 data healthcare system am I doing so it's able to 0:32:02.680 --> 0:32:05.840 detect diseases much earlier. So of the four trillion of 0:32:05.920 --> 0:32:08.040 spend in the US, ninety percent of it is because 0:32:08.080 --> 0:32:11.240 chronic diseases go undiagnosed. And so they've shown and have 0:32:11.320 --> 0:32:14.120 great data to show that chronic kidney disease, for example, 0:32:14.200 --> 0:32:16.880 they can identify three times a number of patients. They 0:32:16.960 --> 0:32:20.320 can identify twenty times the number of asthma patients much 0:32:20.400 --> 0:32:24.400 earlier on. And this can really drive tremendous you know, 0:32:25.360 --> 0:32:27.800 health spans and lifespans for patients, and that to us 0:32:27.960 --> 0:32:29.000 is really really critical. 0:32:29.080 --> 0:32:30.240 So we'll go anywhere. 0:32:30.360 --> 0:32:35.000 But ultimately, in the case of this company, the CEO 0:32:35.200 --> 0:32:37.480 is based in Philadelphia. So I took this the short 0:32:37.520 --> 0:32:40.200 train ride over and sat down, and you know, we 0:32:40.720 --> 0:32:44.160 did a deal in that company. The founder, we think 0:32:44.240 --> 0:32:45.640 is a leading a expert in the world. 0:32:46.080 --> 0:32:49.479 All right, and thirteen in general, passa latif pratcha, thank 0:32:49.520 --> 0:32:51.480 you so much. Coming up here on bloom Big Technology, 0:32:51.520 --> 0:32:54.600 how one company is helping other businesses better adapt to 0:32:54.720 --> 0:32:57.000 the work from home model. My goodness, we have a 0:32:57.040 --> 0:32:59.520 debate coming up. We'll talk to you vendor Bill, the 0:32:59.680 --> 0:33:13.000 see of remote that's next. This is Bloomberg Technology. It's 0:33:13.040 --> 0:33:16.400 breaking news. Crossing the Bloomberg terminal, Clavy Oh is said 0:33:16.440 --> 0:33:19.280 to plan to sell IPO shares for twenty nine dollars 0:33:19.440 --> 0:33:22.360 or more. Believe the range have been twenty seven to 0:33:22.520 --> 0:33:25.160 twenty nine, boosted up from twenty five to twenty seven 0:33:25.480 --> 0:33:27.720 twenty four hours ago. A lot of twenties. But what 0:33:27.840 --> 0:33:30.920 Bloomberg's reporting is Clavio said to plan to sell its 0:33:30.960 --> 0:33:32.960 IPO shares for twenty nine dollars or more. That is 0:33:33.000 --> 0:33:35.880 the one that we're waiting for Wednesday. A lot more 0:33:35.920 --> 0:33:38.520 going on before then, but we'll keep tracking the latest 0:33:38.600 --> 0:33:41.280 on that listing now back to Bloomberg Technology is the 0:33:41.400 --> 0:33:44.800 worst of the pandemics. Of sides, the debates over working 0:33:44.880 --> 0:33:48.320 from home have gained more traction, with many workers wanting 0:33:48.400 --> 0:33:51.960 to stay home for various reasons, while many CEOs want 0:33:52.000 --> 0:33:54.120 them back in the office. In the past week, the 0:33:54.240 --> 0:33:56.760 number of US workers that have returned to the office 0:33:56.840 --> 0:34:01.440 jumped fifty percent from pre pandemic levels. Where human resources 0:34:01.480 --> 0:34:06.200 platforms like remote come in interesting name Today is launching 0:34:06.440 --> 0:34:10.080 its global HR platform to assist companies with hiring management 0:34:10.120 --> 0:34:13.440 and joining us from San Francisco is its CEO, Van Dervolt. 0:34:14.120 --> 0:34:15.920 Thank you for joining us here in Blue met Technology. 0:34:16.080 --> 0:34:18.640 I want to start with the debate. You're kind of 0:34:18.719 --> 0:34:22.840 pinning the company on this future where hybrid work at 0:34:22.920 --> 0:34:25.960 least or remote work continues. Why do you have such 0:34:26.040 --> 0:34:27.040 faith in that model? 0:34:28.160 --> 0:34:30.040 Well, first of all, thank you for having me. 0:34:30.400 --> 0:34:33.040 It's not so much that we think about whether people 0:34:33.040 --> 0:34:35.279 are working from home or working remotely. It's more that 0:34:35.400 --> 0:34:38.200 what we see is that moredern businesses they hire people 0:34:38.239 --> 0:34:41.719 from everywhere. It's very hard to find great people in 0:34:41.840 --> 0:34:44.759 the director insanity of your office, and what we see 0:34:44.880 --> 0:34:46.520 is that more and more businesses start to look for 0:34:46.840 --> 0:34:50.400 talent internationally, and so that's really where we focus at 0:34:50.640 --> 0:34:54.319 and that's what we help facilitate companies to find people 0:34:54.520 --> 0:34:55.920 hire people truly anywhere. 0:34:56.200 --> 0:34:59.000 So this platform you've announced, it's intended to help companies 0:34:59.080 --> 0:35:02.560 with staff in multiple jurisdictions, not just companies, but all 0:35:02.600 --> 0:35:05.120 over the world. Why is that needed? Why was there 0:35:05.160 --> 0:35:06.239 a gap in the market for that. 0:35:07.800 --> 0:35:11.000 So up until now, we would help companies hire people abroad, 0:35:11.120 --> 0:35:13.320 and this was usually a small number of people is 0:35:13.360 --> 0:35:13.960 what is called. 0:35:13.840 --> 0:35:14.800 An employer record. 0:35:15.400 --> 0:35:18.319 And as we've grown, what we realized is that many 0:35:18.360 --> 0:35:21.600 of these companies ended up having multiple SQS offices in 0:35:21.640 --> 0:35:24.440 different countries, and what they had to do to be 0:35:24.480 --> 0:35:27.200 able to support all of those is hire or a 0:35:27.280 --> 0:35:29.759 bunch of people locally and buy a whole bunch of 0:35:29.800 --> 0:35:30.239 software and. 0:35:30.239 --> 0:35:31.440 Then try to hook it up together. 0:35:31.640 --> 0:35:35.200 Now we've built this international infrastructure to actually make sure 0:35:35.239 --> 0:35:37.239 that you can stay compliant, and we've made it into 0:35:37.280 --> 0:35:39.840 a single platform, so rather than having five tools for 0:35:39.960 --> 0:35:41.840 five different countries, now you. 0:35:41.880 --> 0:35:43.720 Can do all of it with us directly. 0:35:44.600 --> 0:35:47.200 It feels like a competitive space. I was just speaking 0:35:47.280 --> 0:35:48.720 with the deal founder. 0:35:49.200 --> 0:35:52.000 You're remote, what are the various offerings at the moment, 0:35:52.080 --> 0:35:56.280 particularly coming from some really well backed VC backed startups. 0:35:56.360 --> 0:35:56.640 Right now. 0:35:58.239 --> 0:36:01.160 I mean for us, we focus on compliance first, and 0:36:01.239 --> 0:36:03.560 that is how we build our platform, and it means 0:36:03.600 --> 0:36:07.040 that we run pay well for you regardless of how 0:36:07.120 --> 0:36:09.680 somebody is employed, whether it's through us, through your own entity. 0:36:09.960 --> 0:36:12.680 We can help your payout contractors, but above all, we 0:36:12.800 --> 0:36:15.560 help you maintain compliance across the world. 0:36:15.719 --> 0:36:17.640 In your team. So that means that we can help 0:36:17.680 --> 0:36:18.520 you on board people. 0:36:18.680 --> 0:36:21.879 Also off board people, help them with conversation and really 0:36:22.040 --> 0:36:25.000 everything that comes with hiring somebody in any place. 0:36:24.800 --> 0:36:25.280 In the planet. 0:36:26.320 --> 0:36:28.480 Let's talk about any place on the planet, because we 0:36:28.640 --> 0:36:32.400 know that there has been prior to perhaps the current slowdown, 0:36:33.000 --> 0:36:37.000 ferocious talent wars. Now then people start to let people go, 0:36:37.280 --> 0:36:39.640 and what became abundantly clear was it's harder to let 0:36:39.719 --> 0:36:42.759 go of certain employees in certain regions. I'm thinking of 0:36:42.840 --> 0:36:45.279 our home area of Europe at the moment. How is 0:36:45.360 --> 0:36:48.400 that factoring into how people are starting to rehire, particularly 0:36:48.400 --> 0:36:50.000 when it comes to the area of AI. There is 0:36:50.080 --> 0:36:52.160 expertise in France, but it's also quite hard to let 0:36:52.200 --> 0:36:54.360 go of workers there. How does that factor into some 0:36:54.440 --> 0:36:55.480 of your client's perspective. 0:36:56.960 --> 0:36:57.919 That's absolutely true. 0:36:57.960 --> 0:36:59.719 I think one of the things that we try to 0:36:59.800 --> 0:37:02.720 do is help inform our customers what is the trade 0:37:02.760 --> 0:37:04.560 off you want to hire somebody great in. 0:37:04.600 --> 0:37:06.320 Friends, Well, this is what you have to think about. 0:37:06.600 --> 0:37:08.440 The way I think about it is that if you 0:37:08.520 --> 0:37:11.400 are committed to hire somebody, you take into account that 0:37:11.560 --> 0:37:13.560 it might cost a bit more if you end up 0:37:13.640 --> 0:37:16.040 having to let the person go. But at the same time, 0:37:16.160 --> 0:37:20.279 that individual gets significantly more protections and it's much less 0:37:20.440 --> 0:37:21.920 likely to leave you as an employer. 0:37:22.000 --> 0:37:25.520 And so there's an ups and the downs to either situation. 0:37:25.640 --> 0:37:28.600 But above all, we believe that companies ultimately want to 0:37:28.640 --> 0:37:31.400 hire great people and we will facilitate that no matter 0:37:31.440 --> 0:37:31.840 where they are. 0:37:32.080 --> 0:37:32.279 Yeh. 0:37:32.320 --> 0:37:34.719 We started the segment talking about the data we have 0:37:35.000 --> 0:37:37.440 for return to office. What does the data you have 0:37:38.080 --> 0:37:40.640 tell you about the movement of people back to office spaces. 0:37:42.200 --> 0:37:44.759 Well, in our case, the one thing that we really 0:37:44.840 --> 0:37:47.600 look at is whether companies are hiring more internationally. So 0:37:47.680 --> 0:37:49.239 we don't really know if people are working from an 0:37:49.280 --> 0:37:51.279 office or where they're working from home or anywhere else. 0:37:51.560 --> 0:37:55.600 But what we do see is that people hire companies 0:37:55.680 --> 0:37:59.600 hire more and more internationally. And that trend continues to grow, 0:38:00.040 --> 0:38:02.520 especially as certain roles are in very high demand, like 0:38:02.640 --> 0:38:06.120 for example, AI researchers. Well you're going to hire it 0:38:06.120 --> 0:38:08.160 them no matter where they are, and dead strength continues 0:38:08.200 --> 0:38:10.560 to expand and at market continues to grow very much. 0:38:10.840 --> 0:38:12.160 You're great to have some time with you. 0:38:12.239 --> 0:38:15.000 Thank you your fand of Wuerte is CEO of Remote Meanwhile, 0:38:15.120 --> 0:38:17.920 coming up, so many more executive discussions to have. So 0:38:18.360 --> 0:38:20.960 we actually have some breaking news as well because instacart 0:38:21.080 --> 0:38:24.440 has started trading at forty two dollars a share. Remember 0:38:24.760 --> 0:38:28.279 they priced their shares at thirty dollars a share, so 0:38:28.440 --> 0:38:31.200 now we have a poper in excess of some forty percent, 0:38:31.280 --> 0:38:33.560 So forty two dollars a share in your opening trade. 0:38:33.560 --> 0:38:36.080 When it comes to the parent company that is Maplebear, of. 0:38:36.080 --> 0:38:38.279 Course is what they've chose when the name to still 0:38:38.320 --> 0:38:40.160 stick with, but is of course Instacart. And we do 0:38:40.280 --> 0:38:42.680 see overall that this is a company that's managing to 0:38:42.719 --> 0:38:46.120 have a significant rise on the opening trade. It's taken 0:38:46.160 --> 0:38:47.879 a fair few hours, and of course it always does, 0:38:47.960 --> 0:38:50.280 but forty percent on the nose, we're currently up thirty 0:38:50.400 --> 0:38:52.680 nine percent, as you see in the first trade, and 0:38:52.800 --> 0:38:54.920 very pleased to say we've got one. Abigail Doolittle has 0:38:54.920 --> 0:38:57.920 been standing by waiting for this moment, and boy, it's 0:38:57.960 --> 0:39:00.120 even bigger tick higher than we had for ARMED in 0:39:00.320 --> 0:39:00.960 previous week. 0:39:01.160 --> 0:39:03.479 Yeah, it's very impressive, Caroline. Indeed, we have the shares 0:39:03.520 --> 0:39:05.960 of Instacart trading hire by thirty nine percent right now, 0:39:06.040 --> 0:39:09.560 so we're looking at evaluation that is closer to fourteen billion. 0:39:09.719 --> 0:39:12.160 It had been priced, of course, at thirty dollars a share, 0:39:12.160 --> 0:39:15.000 which would have been a roughly ten billion dollar valuation, 0:39:15.160 --> 0:39:17.759 So a very strong opening of forty two percent at 0:39:17.760 --> 0:39:19.640 this point. And they of course raised six hundred and 0:39:19.680 --> 0:39:24.160 sixty million dollars and they've sold twenty two million shares, 0:39:24.400 --> 0:39:26.400 fourteen point one million going to the company and then 0:39:26.440 --> 0:39:28.880 seven point nine million going to other investors such as 0:39:28.920 --> 0:39:30.960 Tiger and Co too, So you can imagine that some 0:39:31.040 --> 0:39:34.400 of these investors are really pretty happy now. It is 0:39:34.480 --> 0:39:37.160 interesting though, of course, the twenty twenty one valuation thirty 0:39:37.239 --> 0:39:40.480 nine billion dollars. But the Instacart or excuse me, the 0:39:40.600 --> 0:39:44.120 IPO window that was opened last week by ARM seems 0:39:44.160 --> 0:39:47.640 to be successful right now for Instacart and then TenneT 0:39:47.680 --> 0:39:50.760 of course, for klave Yow, and then there's other filings 0:39:50.760 --> 0:39:53.000 out there such as Birkenstock. One big question will of 0:39:53.040 --> 0:39:56.280 course be technology next year. This is really important, especially 0:39:56.320 --> 0:39:59.160 since rates are still high. It puts pressure on some 0:39:59.200 --> 0:40:01.600 of these high growth issues. Now, one thing I would 0:40:01.719 --> 0:40:04.279 note that you and Ed have noted all hour is 0:40:04.360 --> 0:40:07.280 the fact that ARM opened very strong, up twenty five percent, 0:40:07.360 --> 0:40:09.880 but in the three days that have followed down about 0:40:09.920 --> 0:40:13.000 five percent each day. It'll be interesting to see whether 0:40:13.080 --> 0:40:15.000 or not this one can hold on to its gains. 0:40:15.040 --> 0:40:18.480 It's also interesting, Caroline to note the fact that back 0:40:18.600 --> 0:40:21.440 during the pandemic, during the big IPO, I don't know 0:40:21.480 --> 0:40:24.000 if Bubble is correct, but you had Bumble, you had 0:40:24.440 --> 0:40:27.400 Airbnb and some of those other names popping eighty ninety 0:40:27.440 --> 0:40:28.239 percent on the day. 0:40:28.280 --> 0:40:29.120 So not quite there. 0:40:29.400 --> 0:40:31.880 But nonetheless, given the fact that this is the second 0:40:31.960 --> 0:40:34.279 big IPO of this year, up thirty nine percent, not 0:40:34.400 --> 0:40:35.200 so shabby. 0:40:34.920 --> 0:40:36.200 At all eleven billion. 0:40:36.280 --> 0:40:38.800 Now we have it currently at a market capitalization. Abigail 0:40:38.880 --> 0:40:40.480 did a little thank you. Let's come out to Shanali 0:40:40.520 --> 0:40:43.640 Bassett because boy Nick Giovanni CFO is going to be 0:40:43.719 --> 0:40:45.400 pleased with a way in which that seems to be 0:40:45.480 --> 0:40:48.080 stated for the opening trade, But what do they need 0:40:48.160 --> 0:40:49.839 to do to ensure this demand was there? 0:40:49.840 --> 0:40:53.240 They really curtailed supply. They had locked in cornerstone investors. 0:40:53.360 --> 0:40:55.440 Yeah, locking in those investors was a key to the 0:40:55.520 --> 0:40:58.200 success of this IPO, as we know for arm as well, 0:40:58.320 --> 0:41:00.880 and as we know Clayvio coming tonight has done a 0:41:01.000 --> 0:41:03.839 similar thing in terms of locking in those big names 0:41:03.920 --> 0:41:04.279 early on. 0:41:04.680 --> 0:41:05.560 Now when we look at. 0:41:05.520 --> 0:41:08.200 The trading today, still it was able to achieve that 0:41:08.400 --> 0:41:12.200 forty percent pop, even as it increased its pricing range 0:41:12.239 --> 0:41:14.799 in the days leading up to the IPO, as well 0:41:15.080 --> 0:41:17.680 as selling at the top end of that range. As 0:41:17.760 --> 0:41:19.319 we were talking here in the last thirty even as 0:41:19.360 --> 0:41:21.680 we found that Klavio as well may seek to price 0:41:21.719 --> 0:41:23.600 at the high end of the range or even higher, 0:41:24.160 --> 0:41:27.600 and so you're seeing excitement coming into these stocks early on. 0:41:28.080 --> 0:41:30.640 We know that these big cornerstone investors played a key 0:41:30.719 --> 0:41:33.120 role in the IPOs, but we also know that retail 0:41:33.160 --> 0:41:36.719 investors are also playing a very key role in these 0:41:36.760 --> 0:41:39.919 first day pops. You look at the NAVDAC trading last 0:41:39.960 --> 0:41:41.920 week and you look at the likes of Fidelity and 0:41:42.120 --> 0:41:44.640 just how many orders came in the day of when 0:41:44.680 --> 0:41:47.080 it came from the retail flow, and you think about 0:41:47.080 --> 0:41:49.880 the role of Sofi as well, also led by former 0:41:49.920 --> 0:41:53.600 Golden banker Anthony Noo, and they are the underrat for 0:41:53.680 --> 0:41:56.360 the first time, putting capital up play for an IPO 0:41:56.520 --> 0:41:59.479 in the Instacart listing. Now again they are front rating 0:41:59.560 --> 0:42:04.640 some economic events the FED decision tomorrow. Clavio also looking 0:42:04.680 --> 0:42:07.000 ahead to get any potent get ahead of any potential 0:42:07.080 --> 0:42:09.879 volatility in the market. But what an interesting data list. 0:42:10.080 --> 0:42:12.879 Even with the SMP down, the Nasdaq down, the nas 0:42:12.920 --> 0:42:16.319 like one hundred and composite, the Socks Semiconductor Index down, 0:42:16.360 --> 0:42:18.720 you are getting a forty percent pop at the opening 0:42:18.840 --> 0:42:22.560 trade for instacart as well as more excitement around future 0:42:22.600 --> 0:42:25.440 IPOs to the point you're making more in the pipeline. 0:42:25.560 --> 0:42:28.440 Birkenstock's also looking to go public. A lot of these 0:42:28.480 --> 0:42:31.840 companies with the AI play looking to also go public. 0:42:32.120 --> 0:42:34.440 Our sources telling us people trying to really front load 0:42:34.480 --> 0:42:38.640 those IPOs into the first quarter of next year, trying 0:42:38.719 --> 0:42:40.960 to really capitalize on all of this investor interest that. 0:42:41.040 --> 0:42:43.719 Is coming into new Stock and ahead of any political 0:42:44.360 --> 0:42:46.960 disruptions that might come as we look towards an election 0:42:47.080 --> 0:42:49.640 as well. Shananli Massak fantastic to get the ins and outs. 0:42:49.680 --> 0:42:52.239 I want to give context because context is everything, and 0:42:52.320 --> 0:42:54.440 Jackie Davlos has that for us, because you've been following 0:42:54.520 --> 0:42:57.279 instacart four years and it's interesting. I look back to 0:42:57.320 --> 0:42:59.600 a press release that was in twenty twenty when the 0:42:59.640 --> 0:43:02.800 company weighed six hundred million backed by D one Capital 0:43:02.840 --> 0:43:05.040 Partner is out of valuation to seven point six billion. 0:43:05.080 --> 0:43:07.879 Today they raised six or sixty million, with evaluation about 0:43:07.880 --> 0:43:08.799 eleven million. 0:43:08.560 --> 0:43:11.000 And they go public. It's been a long old road, Jackie. 0:43:11.880 --> 0:43:15.640 It's been over ten years in the making. As a startup. 0:43:15.840 --> 0:43:20.879 Instacart raised nearly three billion dollars from huge investors Fidelity, 0:43:21.120 --> 0:43:25.480 D One, Tiger, and since then they've really matured as 0:43:25.520 --> 0:43:27.680 a business. But let's kind of take a step back. 0:43:27.800 --> 0:43:31.680 Before Fijisimo took the helm a few years ago, the 0:43:31.760 --> 0:43:34.719 business was run by a poor Vametto who had really 0:43:34.880 --> 0:43:39.440 placed the consumer facing app at the forefront of the business. 0:43:39.640 --> 0:43:43.120 And it got a major tailwind with the pandemic people 0:43:43.320 --> 0:43:46.880 ordering online. But that couldn't stick around forever. You had 0:43:46.920 --> 0:43:51.440 competition rolling in from Uber and door Dash, other bigger players, 0:43:51.560 --> 0:43:55.359 Walmart starting its own delivery business, Amazon trying to kind 0:43:55.360 --> 0:43:57.520 of get into the play, and so you had the 0:43:57.600 --> 0:44:01.040 business really getting pressure by an investors in the market 0:44:01.120 --> 0:44:06.120 broadly to really diversify its revenue streams. And when Fijisimo 0:44:06.280 --> 0:44:08.759 came in, as you remember, she was a former meta 0:44:09.280 --> 0:44:15.520 Facebook executive who really built that monetization strategy incorporate advertising, 0:44:15.560 --> 0:44:18.000 and it was no different when she came into Instackhart 0:44:18.280 --> 0:44:21.200 really built out that revenue stream and from one of 0:44:21.239 --> 0:44:23.120 the things that we learned from the s one that 0:44:23.280 --> 0:44:26.840 advertising revenue now accounts for thirty percent of its overall 0:44:26.960 --> 0:44:29.759 revenue and it's going to be incredibly important. So this 0:44:29.880 --> 0:44:32.800 IPO is not just about showing, look, we're giving some 0:44:32.920 --> 0:44:35.840 liquidity back to our employees, but this is the business 0:44:36.160 --> 0:44:38.840 that's now matured and what they have to offer going forward. 0:44:39.080 --> 0:44:42.800 Jackie devlos Well said, context changes everything. 0:44:42.880 --> 0:44:46.000 Meanwhile, of course I am noting that the context is 0:44:46.080 --> 0:44:48.799 this is a female bringing an IPO. Less than one 0:44:48.800 --> 0:44:50.279 percent of IPOs are brought by women. 0:44:50.360 --> 0:44:50.719 Now, I know. 0:44:50.800 --> 0:44:53.160 Fijisimos we thought of as a leader. It doesn't matter 0:44:53.200 --> 0:44:56.320 that whether she's female whatever. But of course, well for 0:44:56.440 --> 0:44:58.480 some it's worth noting from. 0:44:58.400 --> 0:45:00.320 New York verty to say that that does for this 0:45:00.480 --> 0:45:01.640 edition of Blueberg Technology. 0:45:01.880 --> 0:45:01.920 ED. 0:45:02.120 --> 0:45:04.360 Yeah, don't forget. Recap the show on our podcast. You 0:45:04.400 --> 0:45:07.720 can find it wherever you get yours, Terminal, Spotify, iHeart, 0:45:07.960 --> 0:45:10.000 and Apple. This it's Blueberg Technology.