WEBVTT - Bloomberg Businessweek Weekend - December 23rd, 2022 0:00:01.040 --> 0:00:05.440 This is Bloomberg business Week inside from the reporters and 0:00:05.600 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.200 global business, finance and tech news as it happened. Sloomberg 0:00:13.240 --> 0:00:19.800 Business Week with Carol Messer and Tim Stanovic on Bloomberg Radio. Hi, everyone, 0:00:19.880 --> 0:00:22.919 welcome to the weekend edition of Bloomberg Business Week. Happy holidays, 0:00:23.079 --> 0:00:26.320 Happy holidays, and we had a special holiday program this weekend. 0:00:26.360 --> 0:00:28.720 As we look back on our early December visit to 0:00:28.760 --> 0:00:31.720 the Stanford Graduate School of Business, Carol, it once again 0:00:31.800 --> 0:00:34.519 topped Bloomberg Business Week's list of top US and B 0:00:34.640 --> 0:00:39.480 schools for the academic year. That's right, Tim, Stanford takes 0:00:39.479 --> 0:00:42.280 the number one slot for the fourth consecutive year, scoring 0:00:42.360 --> 0:00:45.839 highest overall among eighty two US NBA programs and a 0:00:45.920 --> 0:00:49.840 hundred and seventeen globally. The University of Chicago's Booth School 0:00:49.880 --> 0:00:53.280 came in second, and Harvard ranked third. Over the next hour, 0:00:53.479 --> 0:00:56.840 we'll hear from some prominent Stanford GSB alumni, including the 0:00:56.880 --> 0:00:59.760 CEO of General Motors, Mary Barra, and we'll go off 0:00:59.760 --> 0:01:01.720 camp this in our second hour to talk crypto with 0:01:01.800 --> 0:01:04.200 Cathy Wood and then catch up with the chef Danielle 0:01:04.200 --> 0:01:07.000 Blue on his newest kitchen. All of that to come. 0:01:07.040 --> 0:01:09.040 We begin with the man at the helm of Business 0:01:09.040 --> 0:01:12.080 Week's top ranked business school in the United States. We're 0:01:12.080 --> 0:01:14.640 talking about the dean of the Stanford Graduate School of Business, 0:01:14.840 --> 0:01:18.039 Jonathan Levin. In the five key categories that comprise the 0:01:18.040 --> 0:01:21.600 magazine's rankings, his school led the way in compensation, networking, 0:01:21.640 --> 0:01:25.080 and entrepreneurship. It ranked sixth and learning, and eighteenth when 0:01:25.080 --> 0:01:26.800 it came to diversity and tim We just want to 0:01:26.840 --> 0:01:31.560 remind our listeners it was an incredibly rainy day when 0:01:31.560 --> 0:01:35.319 we were on the Stanford campus, and that's how everybody 0:01:35.319 --> 0:01:37.720 reminded us. Rare and so we couldn't be mad about 0:01:37.760 --> 0:01:41.399 it because the area needs the rain. But nonetheless you're 0:01:41.400 --> 0:01:43.120 going to hear a lot of rain in the background, 0:01:43.160 --> 0:01:46.120 especially when we spoke with d Levin on campus. As 0:01:46.120 --> 0:01:48.760 for what we wanted to know, we did begin with 0:01:49.040 --> 0:01:52.440 where the next generation of business leaders are headed. It's 0:01:52.480 --> 0:01:56.160 been a period over the last five years, just in general, 0:01:56.400 --> 0:01:59.040 of a lot of questioning and business about what is 0:01:59.080 --> 0:02:01.800 the purpose of corporations, what is the role of business 0:02:01.880 --> 0:02:04.880 leaders in addressing societal issues? I mean, this has been 0:02:04.920 --> 0:02:08.600 front and center for every company, for every investor, and 0:02:09.200 --> 0:02:12.040 our students. Of course, this is the world they're going 0:02:12.120 --> 0:02:14.960 to enter into when they leave. Do you think that 0:02:15.000 --> 0:02:18.200 those questions remain in a down market? It's easy for 0:02:18.320 --> 0:02:21.000 us to to ask, right, It's easy for us to say, 0:02:21.400 --> 0:02:24.359 you know, the goal of a company is to serve 0:02:24.680 --> 0:02:28.080 many different stakeholders, but you know there are no atheists 0:02:28.080 --> 0:02:30.799 and a Foxville right when you're in a bear market? 0:02:31.520 --> 0:02:34.400 Are are are those questions? Even being I love that question. 0:02:34.800 --> 0:02:37.000 So when I think about it is I think, to 0:02:37.120 --> 0:02:39.840 some extent, yes, your answer is right. And one one 0:02:39.880 --> 0:02:42.160 way I think about that is if you look at 0:02:42.200 --> 0:02:45.560 the places in the economy where questions about corporate purpose 0:02:45.720 --> 0:02:49.360 and and whether companies should, for example, pursue sustainability goals 0:02:49.360 --> 0:02:54.080 internalized externalities, where those come up most powerfully. It's it 0:02:54.200 --> 0:02:57.440 tends to be in industries and in areas where companies 0:02:57.480 --> 0:02:59.519 have a lot of market pot where they're making significant 0:02:59.600 --> 0:03:03.079 money and they have some flexibility and their decision things. 0:03:03.080 --> 0:03:07.079 A company that's on the threshold of barely surviving, they 0:03:07.160 --> 0:03:09.480 just don't have that much leeway in terms of the 0:03:09.520 --> 0:03:12.600 decision making that they can they can make, And so 0:03:12.639 --> 0:03:14.760 when you go into a down term. Of course, it's 0:03:15.280 --> 0:03:19.919 that people are more focused on traditional profitability measures. Having 0:03:19.960 --> 0:03:23.200 said that, I think some of the generational changes that 0:03:24.000 --> 0:03:26.320 in the way young people, for example, think about companies, 0:03:26.360 --> 0:03:29.799 think about capitalism, those are not. I don't think those 0:03:29.840 --> 0:03:32.560 will change with the recession. I think those are those 0:03:32.600 --> 0:03:34.720 are those are there. I'll give you just quickly one 0:03:34.720 --> 0:03:36.600 piece of evidence on that. So there was a very 0:03:36.680 --> 0:03:39.480 nice study that just came out this fall by a 0:03:39.520 --> 0:03:44.640 few of our faculty members, a survey of investors around 0:03:44.640 --> 0:03:48.360 E s G preferences. Many interesting findings, but the most 0:03:48.400 --> 0:03:52.680 interesting finding to me, the most striking, was stark generational 0:03:52.680 --> 0:03:59.040 differences millennials, young people, all saying, many of them saying 0:03:59.280 --> 0:04:01.640 how much they wanted, first of all, their investments to 0:04:01.640 --> 0:04:04.360 be aligned with their values, and secondly, how much they 0:04:04.360 --> 0:04:07.840 wanted to see companies make decisions that would align with 0:04:07.880 --> 0:04:09.600 their values. And I think you see that reflected in 0:04:09.680 --> 0:04:14.080 the young employees and so forth. Retirees not so much. 0:04:14.480 --> 0:04:16.680 They want to see the value of their bur one 0:04:16.760 --> 0:04:20.839 K go up. When you look at your student population, 0:04:21.680 --> 0:04:23.640 you know, where is it that most of them want 0:04:23.680 --> 0:04:26.040 to end up? Is there any kind of trend, like 0:04:26.080 --> 0:04:28.200 we said, you know when Mary talked about going geck Go. 0:04:28.279 --> 0:04:30.800 I remember years of just everybody wanted to go to 0:04:30.839 --> 0:04:33.480 Wall Street like that was, you know, the holy Grail. 0:04:33.640 --> 0:04:35.480 And I don't know, and you guys are in Silicon 0:04:35.560 --> 0:04:38.360 Valley a lot of entrepreneurship. What is it? So Mary 0:04:38.400 --> 0:04:40.520 Barth followed a very interesting past. She went to Kettering 0:04:40.960 --> 0:04:43.880 and then she eventually came to Stanford Business School only 0:04:43.880 --> 0:04:47.680 the General Motors General Motors University started at General Motors. 0:04:47.720 --> 0:04:50.080 She was enter team and the general responsored her to 0:04:50.160 --> 0:04:54.680 come sponsored, to come lifetime single firm, rose all the 0:04:54.720 --> 0:04:57.320 way from the bottom, all the way up to be 0:04:57.480 --> 0:04:59.920 a great CEO of you know, one of the kind 0:05:00.000 --> 0:05:02.000 at companies in the United States. That is not the 0:05:02.040 --> 0:05:05.000 path that most of our students today will follow. They're 0:05:05.000 --> 0:05:08.160 going to follow pass where they have many jobs. They 0:05:08.200 --> 0:05:11.240 may move around across sectors. They may be entrepreneurs at 0:05:11.240 --> 0:05:13.919 some point, they may be employees, they may be CEOs, 0:05:13.960 --> 0:05:16.400 they may be investors. They're gonna touch they may go 0:05:16.960 --> 0:05:20.480 to the nonprofit sector. And so I think, when when 0:05:20.560 --> 0:05:25.159 we think about education, particularly business school education, the model 0:05:25.240 --> 0:05:27.720 where we're rung on the ladder for people to move 0:05:27.839 --> 0:05:30.040 up on a linear career. That's the wrong way to 0:05:30.080 --> 0:05:32.320 think about what we're trying to do. We're trying to 0:05:33.040 --> 0:05:36.240 give people the tools and the opportunities to go in 0:05:36.480 --> 0:05:40.040 lots of directions and to have many chapters in their career. 0:05:40.440 --> 0:05:43.680 Said mid twenties, which kind of piqued my interest because 0:05:43.720 --> 0:05:45.920 that's that still seems pretty young to me. What is 0:05:45.960 --> 0:05:48.919 the typical age of a student here? Is it getting older? 0:05:49.720 --> 0:05:52.599 Our students from around the world working more before they're 0:05:52.640 --> 0:05:56.680 coming here. So students are coming to business school. There's 0:05:56.680 --> 0:05:58.680 a big range first of all, so some students come 0:05:58.720 --> 0:06:01.200 relatively soon out of college. We have students who have 0:06:01.360 --> 0:06:03.960 spent ten fifteen years stay in the U. S. Military, 0:06:04.000 --> 0:06:05.800 and then they come back to the business school and 0:06:05.839 --> 0:06:08.080 get an NBA and launch off a new chapter of 0:06:08.120 --> 0:06:12.040 their career. The modal student is four to five years out. 0:06:12.240 --> 0:06:14.720 They had one or two jobs, they come in and 0:06:14.800 --> 0:06:19.839 then they and then they got that's older than years 0:06:19.880 --> 0:06:22.320 ago in the world of NBAS, when people might work 0:06:22.480 --> 0:06:24.840 go have two years of work experience. So people are 0:06:24.920 --> 0:06:26.920 getting a little bit older in school. They bring a 0:06:26.960 --> 0:06:29.560 little more experience into the campus. In some ways, it's 0:06:29.560 --> 0:06:31.760 a richer experience here because we've got people who have 0:06:31.839 --> 0:06:33.760 really seen a little bit more of the world, and 0:06:34.240 --> 0:06:37.039 and that you know, that makes for a really dynamic environment. 0:06:37.279 --> 0:06:40.560 Stanford Business School a tough business school to get into, 0:06:41.240 --> 0:06:45.160 a lot of applications for a handful of spaces. I 0:06:45.200 --> 0:06:48.000 remember during the last downturn, the Great Financial Crisis, there 0:06:48.040 --> 0:06:50.840 were lots of articles about people who couldn't find jobs 0:06:50.880 --> 0:06:52.960 deciding to go to business school, sort of as an 0:06:52.960 --> 0:06:55.760 alternate route. What are you planning for when it comes 0:06:55.800 --> 0:06:58.560 to admissions. Do you think that if we do see 0:06:58.600 --> 0:07:01.600 a significant downturn, it will get even more competitive to 0:07:01.640 --> 0:07:04.240 get in here? For those reasons, it's always hard to 0:07:04.320 --> 0:07:08.520 predict the applications, and but the historical trend has been 0:07:08.520 --> 0:07:11.960 that when the economy cools off, people come back to 0:07:12.040 --> 0:07:14.840 school to some extent, and we see some upturn in 0:07:15.280 --> 0:07:18.680 in our in our application numbers. And you know, the 0:07:18.760 --> 0:07:21.680 drum markets has still been even until the beginning of 0:07:21.720 --> 0:07:23.880 this fall, was still even though everyone was talking about 0:07:23.960 --> 0:07:25.720 how it was going to get bad, it was still 0:07:25.720 --> 0:07:28.160 pretty strong. So we may start to see that over 0:07:28.240 --> 0:07:30.200 the course of this year and then the next year. 0:07:30.640 --> 0:07:33.120 Um obviously I hope the economy will live, market will 0:07:33.160 --> 0:07:35.400 stay strong, and you know, even if that means we 0:07:35.480 --> 0:07:38.000 don't see quite as many applications. So I know, in 0:07:38.080 --> 0:07:40.320 some of the past conversations we've had for you, depending 0:07:40.360 --> 0:07:42.080 on maybe who was in the White House and concerns 0:07:42.120 --> 0:07:46.200 abou immigration policies, this was a big topic because international students, 0:07:46.480 --> 0:07:48.800 whether it's your business school or other business schools, that's 0:07:48.800 --> 0:07:51.440 an important part of the experience. Are you at all 0:07:51.560 --> 0:07:53.720 starting to think about we're just coming off the mid terms, 0:07:53.760 --> 0:07:56.360 getting ready for another presidential run that could look a 0:07:56.400 --> 0:07:59.680 lot like the last presidential run potentially, you know, are 0:07:59.760 --> 0:08:03.240 you all a little nervous and just trying to think about, okay, 0:08:03.280 --> 0:08:06.160 how this might play out, how that might impact you guys. Yeah, 0:08:06.200 --> 0:08:12.520 I mean so, my view on being at a place 0:08:12.640 --> 0:08:15.480 like Stanford is that part of our role is to 0:08:15.840 --> 0:08:18.880 be a magnet for talent from everywhere in the world 0:08:19.120 --> 0:08:21.280 and to bring people from wherever they are, you know, 0:08:21.360 --> 0:08:24.560 whatever their backgrounds, whatever their circumstances, give them the opportunity 0:08:24.600 --> 0:08:26.600 to come to the United States, to get an education, 0:08:26.680 --> 0:08:29.480 and in many cases to stay here. And you know, 0:08:29.640 --> 0:08:32.280 you of course, we also have important roles in national 0:08:32.320 --> 0:08:36.760 institution as well to educate students from the us. You know, 0:08:36.880 --> 0:08:38.800 I what I, of course would always like to see 0:08:38.920 --> 0:08:43.400 is that federal policy or and imigation immigration facilitates institutions 0:08:43.440 --> 0:08:45.720 like Stanford to bring great talent from around the world 0:08:45.840 --> 0:08:48.240 bring to us. It's it's actually in the interests of 0:08:48.280 --> 0:08:50.839 the country. It brings innovative capacity to the country, It 0:08:50.920 --> 0:08:53.080 brings town to workforce, it brings good ideas. You look 0:08:53.120 --> 0:08:55.000 at many of the great companies that have started in 0:08:55.000 --> 0:08:57.600 the United States, They've been founded, many of them found 0:08:57.600 --> 0:09:00.439 by immigrants. It's the story of America, and we're part 0:09:00.520 --> 0:09:04.199 of that story. Well, and was talking about ins of 0:09:04.240 --> 0:09:08.000 immigration maybe at a different level, but not even availed 0:09:08.040 --> 0:09:11.599 recommendation to policymakers about immigration reform. Going back to what 0:09:11.679 --> 0:09:14.640 you just said, Dean Levin, I'm wondering how you make 0:09:14.679 --> 0:09:18.040 sure that the idea is that you just espoused about diversity, 0:09:18.320 --> 0:09:20.920 about what immigration does to this country, what it does 0:09:20.960 --> 0:09:23.040 to the workforce. How do you make sure those ideas 0:09:23.400 --> 0:09:26.120 are not just ideas on Stanford's campus and ideas on 0:09:26.240 --> 0:09:30.800 other college campuses. Do you actively talk to policymakers, to 0:09:30.880 --> 0:09:33.400 politicians on the local, on the state, on the national 0:09:33.520 --> 0:09:37.280 level in order to make sure they hear that input, absolutely, 0:09:37.360 --> 0:09:40.360 and that's part of the part part of the role 0:09:40.440 --> 0:09:44.120 of LEAs like Stanford is to is to articulate some 0:09:44.280 --> 0:09:47.959 of the benefits of of the things that that that 0:09:48.200 --> 0:09:52.800 that we do. And we're not a political institution though 0:09:52.880 --> 0:09:55.240 we're an educational institution, and it's true, but you have 0:09:55.480 --> 0:09:58.880 dat to keep our role clear in that sense. The 0:09:58.920 --> 0:10:03.079 economy like that's certainly comes into teaching, right well, what 0:10:03.320 --> 0:10:05.960 is core to the institution at a place like Stanford 0:10:06.160 --> 0:10:08.600 is the ability the free flow of people and ideas 0:10:09.080 --> 0:10:12.440 that is central to what we do and so controversial 0:10:12.679 --> 0:10:16.079 sometimes even if they're controversial, but but but just in general, 0:10:16.120 --> 0:10:19.480 and so having a policy that will federal place that 0:10:19.520 --> 0:10:22.319 will allow us to to bring people in that allow 0:10:22.400 --> 0:10:24.839 people who are here to then have the chance to 0:10:24.880 --> 0:10:27.319 stay in the country. You know, that's that really goes 0:10:27.360 --> 0:10:29.959 to the core of who we are as institution. That 0:10:30.160 --> 0:10:32.920 was Jonathan Levin E's dean of the Stanford Graduate School 0:10:32.960 --> 0:10:35.280 of Business coming up to Stanford b School alum now 0:10:35.360 --> 0:10:39.040 running a public company that provides localized social networking services. 0:10:39.520 --> 0:10:43.360 Next door CEO Sarah Fryer. Advertising is always a place 0:10:43.480 --> 0:10:45.920 that people will go to first when they're worried about 0:10:45.960 --> 0:10:50.200 a recession, and clearly the economic indicators are pointing that way. Um, 0:10:50.320 --> 0:10:52.679 it's a quick way sometimes to just pull back on 0:10:52.800 --> 0:10:56.680 more variable Sending that said, in a downturn, you can't 0:10:56.720 --> 0:10:59.480 afford to completely turn it off. You still need to 0:10:59.520 --> 0:11:02.280 be drive revenue and advertise that you're mindful of that. 0:11:02.559 --> 0:11:14.160 You're listening to Bloomberg Business Week. This is Bloomberg. Please 0:11:14.200 --> 0:11:18.319 sees Bloomberg Business Week with Carol Messer and Tim Stinebeck 0:11:18.800 --> 0:11:24.359 from Bloomberg Radio. Welcome back for a special holiday weekend broadcast. 0:11:24.640 --> 0:11:26.640 This hour, we're looking back on our trip to the 0:11:26.679 --> 0:11:29.679 Stanford Graduate School of Business, which has once again topped 0:11:29.679 --> 0:11:33.040 Bloomberg Business Week magazine's annual ranking of the best business 0:11:33.040 --> 0:11:36.160 schools in the US. You know all, there were seventeen 0:11:36.200 --> 0:11:39.400 programs included in this year's Best b School's list. In 0:11:39.480 --> 0:11:41.679 the past few months have marked the fullest return to 0:11:41.760 --> 0:11:44.960 normalcy since the onset of the pandemic. At the same time, 0:11:45.000 --> 0:11:47.120 many of those who are already out in the business world, 0:11:47.160 --> 0:11:49.720 whether armed with an advanced degree or not, are seeing 0:11:49.760 --> 0:11:53.400 economic conditions that are anything but normal. That certainly includes 0:11:53.559 --> 0:11:57.439 our next guest, absolutely Tim Sarah Fryar graduated from Stanford 0:11:57.480 --> 0:12:00.480 Graduate School of Business in two thousand. She has since 0:12:00.559 --> 0:12:03.679 served as CFO at Square, now known as Block. She 0:12:03.920 --> 0:12:06.960 was senior vice president of Finance and Strategy at Salesforce 0:12:07.120 --> 0:12:09.840 and was lead Software Analysts and business unit leader over 0:12:09.880 --> 0:12:12.719 at Goldman Sachs. Now she is the CEO of the 0:12:12.760 --> 0:12:16.800 publicly held Neighborhoods social networking site next Door. Her company 0:12:17.040 --> 0:12:19.920 is heavily reliant on digital advertising revenue at a moment 0:12:20.000 --> 0:12:23.280 when players of all sizes in that category are really struggling. 0:12:23.679 --> 0:12:25.840 We asked Sarah about the challenges that she and her 0:12:25.880 --> 0:12:28.040 team are facing as they try to serve millions of 0:12:28.040 --> 0:12:31.360 the world's upstart entrepreneurs and small businesses. She has a 0:12:31.480 --> 0:12:34.800 great focus right on that small business community so important 0:12:34.840 --> 0:12:37.640 to the US economy. We remind our audience once again, 0:12:37.640 --> 0:12:39.120 it was a very rainy day when we were on 0:12:39.240 --> 0:12:42.520 campus earlier this month, so please forgive the background noise. 0:12:42.720 --> 0:12:45.840 Sarah joined us remotely from our Bloomberg San Francisco bureau. 0:12:46.000 --> 0:12:49.320 Always great to talk about Stanford GSC on next Door 0:12:49.679 --> 0:12:52.000 right now. We're there to meet the moment so we 0:12:52.080 --> 0:12:54.160 can be there for neighbors in their time of need. 0:12:54.520 --> 0:12:57.480 They might be finding a side hustle. Sometimes it's selling 0:12:57.600 --> 0:13:00.440 something on our first sale and free platform. And clearly 0:13:00.520 --> 0:13:03.760 we're there for businesses. So the small businesses are actually 0:13:03.840 --> 0:13:06.920 coming to next Door because that's where they're finding new 0:13:07.000 --> 0:13:09.559 customers or maybe finding why it's the upsells to those 0:13:09.640 --> 0:13:13.199 current customers. We have about three point nine million on 0:13:13.400 --> 0:13:15.719 the on the site today. And then of course for 0:13:15.880 --> 0:13:19.920 larger advertisers, they are absolutely looking for a performance probably 0:13:20.240 --> 0:13:23.080 segueing a little away from brand type marketing and too 0:13:23.240 --> 0:13:26.600 much more performance type marketing. It's a place where next 0:13:26.640 --> 0:13:29.360 Door can really sing for them, and so that's been 0:13:29.440 --> 0:13:32.480 our focus. How can we help those advertisers do what 0:13:32.600 --> 0:13:34.880 they need to do, get more sales, get more customers. 0:13:35.000 --> 0:13:37.079 And so we want to get into certainly your experience 0:13:37.160 --> 0:13:39.280 here at Stanford, but a little bit more on the business, 0:13:39.320 --> 0:13:41.320 if you will, because you guys really played to such 0:13:41.360 --> 0:13:45.120 a space that we talked about so much at Bloomberg 0:13:45.520 --> 0:13:48.480 in terms of the social space, the advertising space. I mean, 0:13:49.000 --> 0:13:52.280 is advertiser interest slowing? Are you seeing that? And if so, 0:13:52.520 --> 0:13:54.400 can you can you quantify it for us? Give us 0:13:54.400 --> 0:13:56.160 an idea of what you're seeing? I mean, for sure, 0:13:56.240 --> 0:13:58.520 when you look at the whole space. You already mentioned 0:13:58.600 --> 0:14:01.959 many of the competitors in the space. UM advertising is 0:14:02.040 --> 0:14:04.520 always a place that people will go to first when 0:14:04.559 --> 0:14:07.840 they're worried about a recession, and clearly the economic indicators 0:14:07.880 --> 0:14:11.240 are pointing that way. UM it's a quick way sometimes 0:14:11.280 --> 0:14:14.439 to just pull back on more variable spending. That said, 0:14:14.760 --> 0:14:17.839 in a downturn, you can't afford to completely turn it off. 0:14:18.240 --> 0:14:20.920 You still need to be driving revenue, and advertisers are 0:14:21.000 --> 0:14:23.880 mindful of that. UM. It also tends to be, as 0:14:23.920 --> 0:14:25.840 I tell my team all the time, the first thing 0:14:25.920 --> 0:14:28.240 that will be a recovery in so whether it's a 0:14:28.240 --> 0:14:31.040 stop landing in or maybe a harder landing and we're 0:14:31.040 --> 0:14:34.360 at in at spending is definitely the one to watch. 0:14:34.520 --> 0:14:37.800 I think as a very early barometer on the overall environment. 0:14:38.280 --> 0:14:41.120 When I talk to advertisers right now, they are focusing 0:14:41.240 --> 0:14:43.480 on again what they can control, So what are the 0:14:43.520 --> 0:14:45.800 parts of their businesses that are still growing. I was 0:14:45.840 --> 0:14:48.120 with a bank. Clearly they're not spending as much on 0:14:48.240 --> 0:14:51.960 mortgage based advertising, but they're definitely spending in areas like 0:14:52.040 --> 0:14:55.400 consumer banking and in small business banking because they know 0:14:55.640 --> 0:14:58.480 that small businesses are going to need them if times 0:14:58.480 --> 0:15:01.440 are getting tougher. Just one example, sir, what's the mix 0:15:01.520 --> 0:15:06.760 between local businesses advertising from like local businesses versus global companies? UM? 0:15:07.080 --> 0:15:09.000 Is there a difference in terms of the level of 0:15:09.040 --> 0:15:11.560 activity that you're seeing, a level of slowdown that you're seeing, 0:15:11.600 --> 0:15:14.120 and what's more important to your business. For us, it's 0:15:14.160 --> 0:15:17.120 all about local. Next Door is the neighborhood, and that's 0:15:17.200 --> 0:15:21.400 our unique competitive advantage being able to bring local at scale. 0:15:21.840 --> 0:15:23.840 The people on the next door today where one in 0:15:23.960 --> 0:15:27.080 three households in the United States, But the people tend 0:15:27.160 --> 0:15:29.760 to be the household decision maker, right, the person who says, 0:15:30.080 --> 0:15:32.400 what's going in the fridge, what's your car? Am I 0:15:32.440 --> 0:15:34.800 going to buy? Maybe I'm going to take a vacation, 0:15:35.000 --> 0:15:37.520 although with the recession coming, maybe I'm not and I 0:15:37.560 --> 0:15:40.240 want to do something more locally. So for us, local 0:15:40.400 --> 0:15:43.200 is certainly what matters, UM, But don't think about it 0:15:43.280 --> 0:15:47.120 as only say smaller companies, because they're clearly are global 0:15:47.160 --> 0:15:49.800 as you point out, and national brands that wants to 0:15:49.880 --> 0:15:53.760 act local. Walmart is a good example, m McDonald's is 0:15:53.800 --> 0:15:57.240 a great example. Even tech companies like a door dash right, 0:15:57.320 --> 0:16:00.800 they're all thinking about local on wanting to show up 0:16:00.840 --> 0:16:03.480 for individual communities, but they need to be able to 0:16:03.600 --> 0:16:06.240 do that at scale, and for our viewers and listeners 0:16:06.280 --> 0:16:08.640 not familiar. You're on the Walmart board, so you definitely 0:16:08.680 --> 0:16:12.080 have some unique insight into how that company is thinking. Hey, hey, Sarah, 0:16:12.160 --> 0:16:15.320 I'm curious because you know the changes that Apple made 0:16:15.360 --> 0:16:17.600 to its operating system in the last couple of years, 0:16:17.680 --> 0:16:20.520 specifically around privacy and I d f A, the challenges 0:16:20.560 --> 0:16:23.080 that that's posed to Facebook and Snap that's been really 0:16:23.160 --> 0:16:25.720 well documented. One thing we've also heard though, that it's 0:16:25.720 --> 0:16:27.760 been a challenge for small and medium sized businesses to 0:16:27.840 --> 0:16:31.040 actually reach their audience as a result of those privacy changes. 0:16:31.680 --> 0:16:33.000 Just in the last minute that we have with you 0:16:33.120 --> 0:16:36.440 thirty seconds, do you is that is that next Door's gain? 0:16:37.080 --> 0:16:39.960 It should certainly help us because you're right, I think 0:16:40.000 --> 0:16:42.720 small businesses were used to a certain level of performance 0:16:43.040 --> 0:16:44.920 and we've definitely heard that as we've gone out and 0:16:45.000 --> 0:16:47.600 done more of our insights driven research that all of 0:16:47.640 --> 0:16:50.080 a sudden, they're not seeing that on platforms that they 0:16:50.120 --> 0:16:52.640 were used to spending a lot on. So again we 0:16:52.760 --> 0:16:54.720 come back to what can we do for you as 0:16:54.760 --> 0:16:58.400 a small local business. Next door gives you a free page, 0:16:58.760 --> 0:17:00.920 a free presence on the site, a way to talk 0:17:00.960 --> 0:17:03.920 to the customers that can literally walk into your corner shop, 0:17:04.080 --> 0:17:07.320 walk into your hair salon, walk into your fitness gudeo. Um. 0:17:07.400 --> 0:17:09.399 The second thing we do is very trusted. Do you know, 0:17:09.520 --> 0:17:12.639 it's real neighbors, real people at a real address. And 0:17:12.720 --> 0:17:15.720 then finally there's that community aspect. The thing I always 0:17:15.760 --> 0:17:18.119 love about local businesses is they're not just there to 0:17:18.200 --> 0:17:20.960 make a dime. They're also they're often to do good 0:17:21.040 --> 0:17:23.760 in their community. We saw this just through the Thanksgiving 0:17:23.840 --> 0:17:26.639 period um with a lot of businesses giving back particulats 0:17:26.640 --> 0:17:28.560 of folks that may not have what they need to 0:17:28.560 --> 0:17:31.440 put food on the table. We're right now actually offering 0:17:31.480 --> 0:17:33.800 a small business grant with the n A a c 0:17:34.000 --> 0:17:36.920 P to really get to minority businesses as well. So 0:17:37.320 --> 0:17:40.280 just some examples up how next door can help local 0:17:40.320 --> 0:17:43.600 businesses at a local level. Hey Sarah, before we go, 0:17:43.760 --> 0:17:45.560 we do have to ask you about your time at Stanford. 0:17:45.640 --> 0:17:47.160 You you were here at the height of the dot 0:17:47.200 --> 0:17:50.919 com bubble. Do you see any like comparisons or similarities 0:17:51.359 --> 0:17:54.600 between that time and maybe I don't know, is it 0:17:54.680 --> 0:17:58.120 a crypto bust. I'm not quite sure we saw kind 0:17:58.160 --> 0:18:02.000 of loosen froth over the last year. Yeah, it's it's interesting. 0:18:02.040 --> 0:18:03.840 I was actually just at the Business School a few 0:18:03.840 --> 0:18:06.399 weeks back teaching a class about Where's I p O. 0:18:06.480 --> 0:18:09.360 You mentioned square UM and you know the cost I've 0:18:09.359 --> 0:18:11.280 taught now for a couple of years. A year ago 0:18:11.560 --> 0:18:14.280 we were in full frost mode UM, and as we 0:18:14.400 --> 0:18:17.119 talked about valuation and multiples, it felt like there was 0:18:17.160 --> 0:18:19.480 almost no feeling to it. This year's class was a 0:18:19.560 --> 0:18:22.760 much more somber, But I think our message to them, UM, 0:18:22.880 --> 0:18:25.359 I teach it with another x m G sp R 0:18:25.560 --> 0:18:28.040 who's on the on the BI side, is you know, 0:18:28.119 --> 0:18:30.960 it's a great time to pivot the fundamentals. Some of 0:18:31.000 --> 0:18:34.080 the greatest businesses I've seen have been created in the downturn, 0:18:34.119 --> 0:18:36.280 because you've got to be great if you're going to 0:18:36.400 --> 0:18:39.600 make it through say a public markets um issuance when 0:18:39.640 --> 0:18:41.879 the market is low, so it can actually be a 0:18:41.960 --> 0:18:44.280 time of great opportunity. That's what I'm thinking about my 0:18:44.359 --> 0:18:46.639 business right now. It's certainly what I learned when I 0:18:46.720 --> 0:18:49.200 came out of Stanford Business School into a world that 0:18:49.480 --> 0:18:53.040 was going through its own mega crisis. UM and of course, 0:18:53.240 --> 0:18:55.280 you know, I was at a financial institution during the 0:18:55.320 --> 0:18:59.040 financial crisis, So there's lives experiences that tell us these 0:18:59.080 --> 0:19:01.800 are cycles. It will get better, but we have to 0:19:01.840 --> 0:19:04.280 be really mindful and real effect about what we can 0:19:04.320 --> 0:19:07.040 do for our business today. That was Sarah Fryer, CEO 0:19:07.119 --> 0:19:09.240 of next Door and a member of the Stanford Graduate 0:19:09.280 --> 0:19:11.720 School of Business class of two thousand. Still Ahead, on 0:19:11.760 --> 0:19:14.280 Bloomberg Business Week, we check in with another high profile 0:19:14.320 --> 0:19:18.520 Stanford gs b Alum General Motors Chair and CEO, Mary Barra, 0:19:19.000 --> 0:19:22.040 and the iconic American automaker is adjusting its plans as 0:19:22.080 --> 0:19:25.000 signs of economic recession begin to mount. We decided to 0:19:25.240 --> 0:19:29.840 put our plan around a more conservative market around fifteen 0:19:30.320 --> 0:19:34.080 million star, which is a seasonable adjusted sales rate. And 0:19:34.760 --> 0:19:37.159 because we understand that, you know, we set everything up, 0:19:37.200 --> 0:19:39.760 if there's been more opportunities, will be able to seize 0:19:39.800 --> 0:19:42.359 the opportunity. But we're taking the approach that we're going 0:19:42.440 --> 0:19:44.480 to be very mindful of costs as we go into 0:19:44.600 --> 0:19:48.680 next year. We have a strong product portfolio with new 0:19:49.080 --> 0:19:51.720 new midsize trucks coming off of you know, new trucks 0:19:51.760 --> 0:19:53.960 that we've just launched this year. So We're confident in 0:19:54.000 --> 0:19:56.840 our product portfolio, but we're going to be conservative with costs. 0:19:57.160 --> 0:19:59.400 And later we'll go deep on the latest Crypto winter 0:19:59.600 --> 0:20:02.000 with our invests Kathy Wood and we'll break down the 0:20:02.000 --> 0:20:05.040 Bloomberg fifty. It's the magazine's annual look at key figures 0:20:05.080 --> 0:20:21.360 impacting the business world. Stick around. This is Bloomberg Broadcasting 0:20:21.480 --> 0:20:25.000 from the financial capital of the world, Bloomberg eleven Frio 0:20:25.320 --> 0:20:29.280 in New York to Washington, d C. Bloomberg to Boston, 0:20:29.400 --> 0:20:32.800 Bloomberg one O six one to San Francisco, Bloomberg nine 0:20:32.920 --> 0:20:35.960 six to the country Sirius XM Chadel one nine team, 0:20:36.080 --> 0:20:39.560 and around the globe the Bloomberg Business and Bloomberg Radio 0:20:39.720 --> 0:20:44.000 dot Com. This is Bloomberg Business Week with Carol Masser 0:20:44.320 --> 0:20:50.159