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Speaker 1: From the heart of where Innovation, money and power Colli

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Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with

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Speaker 1: Emily jay I remember my check in San Francisco, and

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Speaker 1: this is Bloomberg Technology coming up in the next hour.

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Speaker 1: This week marks the beginning of a new chapter in

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Speaker 1: the already long and twisty elon Musk Twitter saga, moves

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Speaker 1: from the Chief Twitter over the weekend, and what's next

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Speaker 1: Claus Pinterest's latest earnings beat was a welcome bright spot

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Speaker 1: compared to its peers like Snap Meta Alphabet. We'll catch

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Speaker 1: up with CEO Bill Ready to talk about its strategy

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Speaker 1: to reignite the platform. And in China and exitus of

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Speaker 1: workers has threatened to disrupt output at the world's largest

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Speaker 1: iPhone plant operated by fox On Now. The company is

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Speaker 1: said to be raising wages by as much as to

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Speaker 1: keep production going. We're gonna have all the details later

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Speaker 1: this hour. This week, of course, marks the beginning of

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Speaker 1: a new chapter in the Musk Twitter saga. In the

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Speaker 1: span of just two days, he has completed the acquisition,

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Speaker 1: fired Twitter's top executives, and taken over as Chief Twitter.

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Speaker 1: Joining us now for more. Mark Mhaney, Senior managing director

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Speaker 1: at Evercore, I s I who covered Twitter as a

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Speaker 1: public company, and our very own senior executive tech editor,

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Speaker 1: Brad Stone. So Brad, he's also dissolved the board. He's

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Speaker 1: the only board member as of now. What's actually happening

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Speaker 1: inside Twitter at this moment. I think there's a lot

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Speaker 1: of anxiety and confusion and speculation right now. Emily employees

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Speaker 1: are bracing for layoffs. They're swapping phone numbers, connecting on LinkedIn,

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Speaker 1: a lot of people assuming they're probably about to get

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Speaker 1: kicked out of the system. We know thanks to Mike

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Speaker 1: colleague Kurt Wagner, a lot of managers had to create

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Speaker 1: lists over the weekend of employees that they were planning

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Speaker 1: to let go today. Nothing's been announced, but it really

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Speaker 1: only seems a matter of time. And then other than that,

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Speaker 1: they're throwing a lot of things against the wall. You

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Speaker 1: heard this thing about maybe reviving Vine, Twitter's old video

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Speaker 1: sharing service that they closed in two thousand sixteen. Twitter

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Speaker 1: would have to rebuild it to convince creators to come back.

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Speaker 1: They haven't been able to make money on that when

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Speaker 1: they when they had it, so that would be a

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Speaker 1: big challenge. And then this idea of getting people to

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Speaker 1: pay for that blue check mark that we enjoy. Emily,

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Speaker 1: the verification um twenty dollars a month was floated. I

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Speaker 1: think they're throwing some things against the wall. We do

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Speaker 1: know that Ellen wants to revive subscriptions at Twitter, so

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Speaker 1: maybe that's one piece of a broader plan. But it's

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Speaker 1: still very early. Mark, I someone who covered the company

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Speaker 1: as an analyst four years, What do you make of it?

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Speaker 1: What of what? What kind of a proposition is this

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Speaker 1: really for investors today? Well, I think it's gonna be

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Speaker 1: a it's gonna be completely revamped over the next year too.

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Speaker 1: And um, you know, I listened to much very carefully

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Speaker 1: for the last six months. I didn't necessarily to hear

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Speaker 1: business plans. I think he had a lot of other

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Speaker 1: reasons for owning the asset, and so it's his now.

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Speaker 1: I think from a from if this were to come

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Speaker 1: out into the public markets again, I guess that this

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Speaker 1: business will be completely revampeded. But if I just step back,

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Speaker 1: Twitter didn't really do much in the public markets. She

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Speaker 1: was there for what seven years, and uh, it barely

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Speaker 1: moved over that course of that time. It is very volatile.

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Speaker 1: It um, it never really gained dramatic share amongst amongst

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Speaker 1: advertisers marketers. They generated reasonable a modern revenue five billion

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Speaker 1: a year, They had reasonable free cash flow, but they

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Speaker 1: could never really break through beyond being like a second

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Speaker 1: or even a third tier advertising platform. I haven't heard

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Speaker 1: anything from from us that suggests he's got a plan

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Speaker 1: to to break him out of that. I think subscriptions

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Speaker 1: are are limited as to long term strategy for Twitter.

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Speaker 1: Good strategy, but they don't dramatically move the needles. So

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Speaker 1: I'm sort of I'm skeptically watching this from a distance.

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Speaker 1: I hope he can improve the business model there, but

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Speaker 1: I'm not I'm not holding my breath on that. But

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Speaker 1: if he can, wonderful In the meantime, I think his

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Speaker 1: intentions were very different than improving the business, and you know,

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Speaker 1: I wish him good luck with the rest that he's

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Speaker 1: trying to do with the business. Brad We reported that

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Speaker 1: in the hours after his takeover, hate speech surged on

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Speaker 1: the platform. Twitter responded saying a lot of that was

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Speaker 1: inauthentic behavior. Over the weekend, Must also retweeted an article

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Speaker 1: with a conspiracy theory about the attack on now speaker

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Speaker 1: Nancy Policy's husband, obviously, this is a person with a

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Speaker 1: huge audience that obviously creates huge opportunities but also real dangers.

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Speaker 1: What does all of this tell you, Well, I mean,

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Speaker 1: there was a breathtaking lack of respect with that tweet

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Speaker 1: for the former Senator and First Lady Hillary Clinton, for

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Speaker 1: the Speaker of the House and her husband, for the

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Speaker 1: facts of the case which are now very well established

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Speaker 1: by the criminal complaint coming out of San Francisco. I mean,

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Speaker 1: really believe the conspiracy theories? I don't think so. What

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Speaker 1: it tells me is that like owning the lips, provoking

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Speaker 1: Democrats being contrariant, this is kind of the animating philosophy

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Speaker 1: right now, not only the right wing Republicans, but the

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Speaker 1: pro business moderates like Elon and David Sachs. They just

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Speaker 1: enjoy this pointless provocation. And you know this is penn

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Speaker 1: Elon m o on Twitter for quite some time now,

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Speaker 1: Jack Dorsey, We're just getting this headline, Jack Dorsey contributing

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Speaker 1: eighteen million Twitter shares to retain an indirect stake in

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Speaker 1: this company under Elon musk Mark. What do you make

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Speaker 1: of that? And what do potential advertisers who have been

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Speaker 1: working with Twitter for all these years make of what's

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Speaker 1: to come. I mean, clearly there's a lot of uncertainty. Well,

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Speaker 1: I'll just hit on the second part of the second question, Emily.

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Speaker 1: So this is this is key. I mean, this is

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Speaker 1: this is how of the revenue from Twitter and the

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Speaker 1: pass came from advertising. I find I don't really see

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Speaker 1: a business model in the future that doesn't still have

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Speaker 1: plus to the revenue come from advertising, like it does

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Speaker 1: with every other social media asset. There's nothing wrong with that.

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Speaker 1: It's a high margin business. Wonderful thing about social media

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Speaker 1: is that they don't have to pay the content providers

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Speaker 1: or play largely don't, so it's a very high margin business.

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Speaker 1: You just need to sell effectively adds against it. One

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Speaker 1: of the things that Twitter has been trying to do

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Speaker 1: for the last couple of years is moved beyond brand

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Speaker 1: advertising to direct response advertising, which has kind of always

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Speaker 1: been the power alley of Internet advertising. The problem is

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Speaker 1: that those dollars have gone to Google, and they've gone

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Speaker 1: to Facebook and a few other places, and they've only

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Speaker 1: trickled down to Twitter because in part because Twitter has

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Speaker 1: never really had great tools for direct response advertisers. So

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Speaker 1: maybe that's all part of the fix at Twitter. From

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Speaker 1: a business model perspective, that's not going to happen in

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Speaker 1: a quarter or two. That's a year or two slog

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Speaker 1: for that to happen. In the meantime. Marketers all this

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Speaker 1: debate about whether there's um uh censorship or not on

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Speaker 1: on Twitter. Marketers, I think they just want something that's

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Speaker 1: relatively well regulated. They don't want their brands put against

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Speaker 1: nasty content, whether that's whether that's a verbal or whether

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Speaker 1: it's graphic. Uh and um so I think uh if

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Speaker 1: something changes in the marketplace that makes it less user friendly,

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Speaker 1: makes it makes it if there's more vulgarity on the site,

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Speaker 1: I think advertisers will pull back from that. So there's

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Speaker 1: a real tough balancing act here between what must he

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Speaker 1: is trying to do and what marketers want. And you know,

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Speaker 1: I saw his tweets to market to marketers over the weekend.

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Speaker 1: He said he would try to avoid the place becoming

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Speaker 1: a hellscape. I think he does that for personal philosophical reasons,

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Speaker 1: but also for business reasons, because if it does become

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Speaker 1: a healthscape, advertisers will flee. Rad Curious what your take

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Speaker 1: is on these Jack Dorsey filings. We're getting this all

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Speaker 1: from a third ten d that Jack Dorrisey still retaining

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Speaker 1: an indirect stake in Twitter. I mean Jack Dorsey is

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Speaker 1: the author of this whole situation. He personally solicited Ellen

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Speaker 1: to come by the company. He long felt that Twitter

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Speaker 1: would do better as a private company. He helped taking

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Speaker 1: a public with one of the company's big mistakes. So

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Speaker 1: you know, it doesn't surprise me. He's a big fan

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Speaker 1: of Elon's. He wants to be a small part of

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Speaker 1: of Twitter's makeover. He cares deeply for the company. Uh,

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Speaker 1: so you know he's putting his money where his mouth is. Um,

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Speaker 1: it'll be interesting to see if he has any operational

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Speaker 1: or advisory role in the new Twitter. Of course, it's

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Speaker 1: it's too soon to tell. But no, this doesn't surprise

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Speaker 1: me at all. Well, speaking of that, I'm curious what

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Speaker 1: you think about him surrounding himself Elon Musk surrounding himself

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Speaker 1: with people like David Sacks and Jason Calcannis, both of

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Speaker 1: the All In Pod, both with a point of view.

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Speaker 1: You've also got Amy Klobuchar, Senator Amy Klobuchar out there

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Speaker 1: saying that she's worried that hate speeches an even bigger

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Speaker 1: liability now on Twitter. Um, you know, clearly we're still

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Speaker 1: waiting for the plans to form. But you know, how

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Speaker 1: what sort of conclusions are we supposed to draw here

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Speaker 1: about what kind of company he's going to be running. Well, well, look,

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Speaker 1: I think everybody was bracing for Donald Trump to be

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Speaker 1: reinstated onto Twitter at the very first day of Elan

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Speaker 1: owning the company, and it did happen. You know, I

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Speaker 1: feel a little sheepish praising Ellen here for exercising restraint.

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Speaker 1: But to go back to Mark's point, I think he's

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Speaker 1: now got to balance some of his rhetoric with the

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Speaker 1: realities of running a company and keeping the advertising base

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Speaker 1: and keeping advertisers happy and and fostering you know, kind

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Speaker 1: of kind of reasonably safe dialogue on the on the surface.

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Speaker 1: You know they've talked about in oversight board. We don't

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Speaker 1: there's a lot we don't know. Is that, like Facebook's

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Speaker 1: oversight board, a sort of kind of veto appellate body,

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Speaker 1: or is it more than management of the company. You know,

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Speaker 1: these are all real serious, hard questions that Ellen and

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Speaker 1: his his friends now who all have other jobs, by

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Speaker 1: the way, have to have to determine. And you know,

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Speaker 1: I wish them well. These are these are tough decisions.

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Speaker 1: Are who knows that's CEO position, according to Ellen is open.

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Speaker 1: He's just the chief twit for now, Bloomberg's Bradstone. Thank

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Speaker 1: you so much. Mark Mahaney of ever Card, Mark, you're

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Speaker 1: going to stick with us and help us break down

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Speaker 1: some of the big tech results we've seen of the

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Speaker 1: last couple of weeks. Sticking with Twitter, Democratic Senator Chris

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Speaker 1: Murphy said Musque's purchase of the platform should be scrutinized.

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Speaker 1: Murphy tweeting today, I'm requesting the Committee on Foreign Investment

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Speaker 1: to conduct an investigation into the national security implications of

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Speaker 1: Saudi Arabia's purchase of Twitter. Now, among the investors backing

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Speaker 1: must take over, Saudi Prince Alwa lead been to lall

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Speaker 1: through the Kingdom holding Company and his private office, which

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Speaker 1: agreed to roll over nearly thirty five million Twitter shares

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Speaker 1: worth about one point nine billion dollars. Back now with

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Speaker 1: Mark Mahoney of Avercor to talk about big tech results. Mark,

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Speaker 1: I gotta start with Meta. It's sold off more than

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Speaker 1: sevent so far this year. I just checked its market cap,

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Speaker 1: less than two hundred fifty million dollars. We're back to

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Speaker 1: October levels. I mean, would you have ever thought this

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Speaker 1: could be possible? Um, after this company has achieved such

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Speaker 1: historic high I didn't think it would be possible. Um Well,

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Speaker 1: I guess I thought it was possible, but I didn't

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Speaker 1: think it was probable, or else I would have had

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Speaker 1: a buy on it. Mikel has been dead wrong on

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Speaker 1: this for the last twelve months or even longer. This

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Speaker 1: company hit this buzz saw of these Apple privacy changes,

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Speaker 1: competition from from TikTok, and now an advertising economic recession,

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Speaker 1: and then this fourth kind of spoiler alert issue or

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Speaker 1: spoiler issue, which is what really came up last week,

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Speaker 1: which is that the market wants them to cut out

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Speaker 1: the spend on the metaverse, slash it in half, rain

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Speaker 1: and expenses. It's a recession. When when that happens, you're

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Speaker 1: supposed to kind of marry down, ratchet down expenses and

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Speaker 1: investments to kind of kind of match up with with

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Speaker 1: the deteriorating revenue. And the company is sort of refusing

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Speaker 1: to do that. Zuckerberger's refusing to do that. And I

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Speaker 1: think this last part is really just fight selling on

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Speaker 1: a part of investors who were saying you know, the

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Speaker 1: It's wasn't the revenue results. People expected softness there. It

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Speaker 1: was that they that the clinging to this aggressive investment

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Speaker 1: horizon in this environment, and the market has said no,

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Speaker 1: that too much. It's no mosque, We're out of here.

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Speaker 1: We're selling now. There were a couple of companies that

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Speaker 1: had strong quarters Apple Pinterest, which is interesting given their

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Speaker 1: role in the advertising business. But of course Alphabet, Meta, Microsoft, Amazon,

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Speaker 1: all having a really tough quarter reporting. What's the common

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Speaker 1: thread here, Well, just the only thing I uh equivabal

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Speaker 1: with you on is Pinterest. Pinterest revenue results actually deteriorated. Now,

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Speaker 1: the expectations have been set low enough that results came

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Speaker 1: in a little bit better than expected. By the way

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Speaker 1: they did with Meta too, ad revenue came in a

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Speaker 1: smidgin better than expected. So it wasn't a revenue problem.

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Speaker 1: Is that people just don't want them investing out, particularly

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Speaker 1: they don't want them investing in the metaverse with their

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Speaker 1: return on that investment dollar is so uncertain. What's happening

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Speaker 1: is demanded softening across the board. So the two most

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Speaker 1: interesting parts to me, Emily were Google. This was the

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Speaker 1: first quarter that Google said there was weakness and search.

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Speaker 1: They hadn't said that in March, they hadn't said that

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Speaker 1: in June quarter. They said that in the September quarter.

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Speaker 1: And search is usually considered to be the most not

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Speaker 1: recession proof, but recession resilient of all the ad platforms.

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Speaker 1: So if Google seeing it in search, you can you

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Speaker 1: can be pretty sure that just about every other company

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Speaker 1: is seeing it. And then there's Amazon. Amazon, and the

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Speaker 1: June quarter was specifically asked whether they've seen any signs

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Speaker 1: of consumer softness in the CEFO said no, Well things

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Speaker 1: have changed now they're starting to see softness, and they

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Speaker 1: saw it in Europe maybe not surprisingly, and now I'm

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Speaker 1: starting to bleed over to the US. So the real

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Speaker 1: question is how much worse could it get? We know

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Speaker 1: what's getting softer, will it continue to get softer and

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Speaker 1: for how long? And that's that's a really hard one

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Speaker 1: to know. But it's a macro call. And I think

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Speaker 1: all of these companies, especially they have exposure to the consumer,

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Speaker 1: but even Microsoft and and Amazon with a WS are

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Speaker 1: are saying that enterprises are starting to slow down to

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Speaker 1: we're heading into recession demand trends or softening across the board,

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Speaker 1: and any company who tells you that that's not the case.

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Speaker 1: It's probably be either doesn't know their business or is

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Speaker 1: not being honest. Interesting point you made about Pinterest. Bill Ready,

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Speaker 1: the new CEO is going to be on the show

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Speaker 1: in in in a few minutes. I'm gonna put your

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Speaker 1: point to him. I do want to ask about the

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Speaker 1: broader advertising landscape and what your outlook is. You know,

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Speaker 1: you also cover Netflix, which reversed the decline and subscribers

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Speaker 1: for the first time in a while. You've got now

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Speaker 1: the streamers going after a piece of the advertising pie

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Speaker 1: in addition to the social media companies going after the

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Speaker 1: advertising pie. How is this all going to play out well?

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Speaker 1: By the way I think Pinterest is maybe really will

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Speaker 1: set up here. You know, you've got a turnaround story,

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Speaker 1: um executive with a very good execution track record, asset

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Speaker 1: that may not have been run that well in the past.

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Speaker 1: So there's a turnaround story. By the way, there's sort

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Speaker 1: of is a Netflix too, which is why the stock

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Speaker 1: has been a monster stock to the upside finally over

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Speaker 1: the last couple of months, because there's this new revenue

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Speaker 1: team that they're going to go from zero to a huntred.

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Speaker 1: Question is just how quickly. But you know there there's

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Speaker 1: there's enormous demand for from advertisers for access to Netflix's base.

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Speaker 1: I mean two or your twenty million people who use

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Speaker 1: the site, you know, an hour or two hours a day.

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Speaker 1: So you've got reach, you've got frequency, and you've got

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Speaker 1: almost like a primetime audience. You know that that prime

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Speaker 1: audience I meant like Amazon Prime s. The average household

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Speaker 1: probably rescuse middle to upper middle income globally for Netflix.

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Speaker 1: So there's just a lot that brand advertisers can tap into.

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Speaker 1: For the first time ever, you can own Netflix inventory,

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Speaker 1: so that that's what there's something new. If you don't,

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Speaker 1: if you don't have something new, brand new in your

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Speaker 1: in your fundamentals, they are going to get weaker in

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Speaker 1: the back half year and going into next year. That's

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Speaker 1: the advantage that Netflix has right here. I like Netflix

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Speaker 1: is one of my topics, so is Meta. I just didn't.

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Speaker 1: I just thought Metal was gonna show more cost and

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Speaker 1: investment discipline than than they've led on mark human covering

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Speaker 1: tech for two decades. Do you think we're seeing a

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Speaker 1: real inflection point here? Is there further to fall? And

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Speaker 1: how how long does it take before this turns around well,

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Speaker 1: so to two thoughts, Um and I love the way

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Speaker 1: you set up the question. So yeah, we have a

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Speaker 1: negative inflection here. These are tech is bigger than it

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Speaker 1: was during the last cycle O eight oh nine with

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Speaker 1: the great housing, great financial crisis, Great housing, great financial crisis.

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Speaker 1: Those are the same thing, and so it's much bigger.

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Speaker 1: So it's more cyclical than it was back then. Look,

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Speaker 1: our our our firm aber Coorien size call is that

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Speaker 1: overall advertising is going to decline mid single digits next year,

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Speaker 1: which probably means to digital advertising is going to be

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Speaker 1: flat up five percent. There's another inflection point yield that

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Speaker 1: I'm super interested in. We'll have to come back to it.

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Speaker 1: But that's AI. So what Facebook and Google are doing,

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Speaker 1: met and alphabet they're spending seventy billion dollars combined next

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Speaker 1: year on capex related to AI, artificial intelligence and machine learning.

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Speaker 1: I'm fascinating And Bill Ready has been uh, very thoughtful

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Speaker 1: on this topic too. I'm fascinated by what's gonna come

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Speaker 1: out of this. The market is assuming that there's very

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Speaker 1: little return on that AI investment, that AI capital expenditures.

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Speaker 1: My guess is at Google and and men have probably

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Speaker 1: know what they're doing, and we're going to see some

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Speaker 1: sort of return on it. But but and so when

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Speaker 1: we see that, I don't think that's pricing. I think

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Speaker 1: that creates some wonderful long term buying opportunities on these

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Speaker 1: two stocks. What I fear is that the stocks are

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Speaker 1: first going to go down because of macro and recession

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Speaker 1: before they start moving up because of artificial intelligence. All Right,

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Speaker 1: we're gonna have to dig in to artificial intelligence with

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Speaker 1: you next time you're back on the show. Markmahenny of

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Speaker 1: ever Core, I s, I always appreciate your perspective, and

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Speaker 1: especially your historical perspective. Given how many years you've been

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Speaker 1: doing this, We're gonna have much more ahead. Stay with us.

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Speaker 1: This is Bloomberg, another story we're continuing to watch. Electronic

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Speaker 1: Arts will develop three video games inspired by Marvel comic

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Speaker 1: book characters. That gives the company access to the most

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Speaker 1: popular entertainment franchise in the world. The scheme e A

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Speaker 1: is making is based on Iron Man, that is, the

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Speaker 1: billionaire inventor and superhero who was the main character in

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Speaker 1: one of the first hit Marvel movies. Welcome back to

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Speaker 1: Bloomberg Technology and Emily Changing in San Francisco. Let's get

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Speaker 1: back to the markets and social media stocks on the move.

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Speaker 1: Bloomberg's at Ludlow is back and take it away. Yeah,

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Speaker 1: there was a pocket of weakness in the market when

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Speaker 1: it comes to social media shares. We talked about how

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Speaker 1: Meta closed its lowest level since October. There were reports

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Speaker 1: from down to detect to seven thousand incidences of people

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Speaker 1: saying that Instagram had crashed and was having some glitches

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Speaker 1: and was down. But you would suspect that a lot

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Speaker 1: of the pressure on this stock stems from that disappointing

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Speaker 1: earnings report last week. Snap caught up with that down

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Speaker 1: one point sent Pinterest Interesting had its best day in

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Speaker 1: more than two months last Friday after strong earnings. I

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Speaker 1: think the street really liked what they saw, but giving

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Speaker 1: up some of those gains in Monday session down one

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Speaker 1: Pinterest really interesting stories. We look at the stock year

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Speaker 1: to day relative to met Her and Snap. We know

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Speaker 1: about softness and the advertizing space, but actually relative to

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Speaker 1: its peers, Pinterest is held up really well. I'm really

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Speaker 1: interested in what the story is here and what invests

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Speaker 1: see in Pinterest relative to a Meta, relative to a Snap.

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Speaker 1: That said, of course, it is still down pretty significantly

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Speaker 1: year today, and I'm hoping that you can ask which

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Speaker 1: direction the stock goes from here? All right, I will

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Speaker 1: indeed thank you. Pinterest has been out pacing its peers,

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Speaker 1: as I mentioned, posting strong third quarter results with an

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Speaker 1: uptick and monthly active users after three straight quarters of declines.

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Speaker 1: This as the social media industry grapples with a decrease

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Speaker 1: in digital ad spend while marketers worry about economic uncertainty.

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Speaker 1: Joining me now for more on this bi already, Pinterest

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Speaker 1: CEO has been on the job since late June. So

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Speaker 1: how is it that Pinterest seemed to buck the ad

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Speaker 1: media spiral we saw with Snap and Meta and others.

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Speaker 1: Bill Well, first of all, thanks for having me Emily.

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Speaker 1: Always a pleasure, UM, And I feel really great about

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Speaker 1: how our team performed in Q three. I think you

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Speaker 1: know we're we're doing some things that are fundingly different

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Speaker 1: than the rest of social media, and I think you're

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Speaker 1: seeing that start to cut through with advertisers, uh, and

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Speaker 1: and with users. We grew teen percent year on year

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Speaker 1: on a constant currency basis. UH, really outpacing a decelerating

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Speaker 1: market and growing faster than a lot of our peers,

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Speaker 1: which means we're taking share. Uh. And I think part

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Speaker 1: of that is that, you know, number one, we're a

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Speaker 1: positive platform. We're not a place where people go to

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Speaker 1: shout about their politics or to present their seemly perfect

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Speaker 1: life that makes others feel negative. Uh. It's it's a

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Speaker 1: place where people go to find inspiration. UH. It's a

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Speaker 1: place where people go with an intent and a purpose.

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Speaker 1: And that's a very unique thing in the space, both

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Speaker 1: for what the users get as well as what advertisers get.

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Speaker 1: It's a full funnel ADS solution in the advertisers can

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Speaker 1: connect at the upper, mid and lower funnel and really

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Speaker 1: meet you. There's a multiple points along their journey. And

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Speaker 1: so the brand safe nature of the platform, paired with

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Speaker 1: the full funnel nature of it, UH, user growth returning,

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Speaker 1: these things are all starting to really cut through. UH.

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Speaker 1: And I think you see it demonstrated in our results.

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Speaker 1: Let's talk about what advertisers get, because obviously we're seeing

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Speaker 1: a broader ad pullback. What is your outlook as we

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Speaker 1: head into three and how much of that you know,

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Speaker 1: pinterest gains? Do you do potentially gain ad market share

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Speaker 1: or not As we head into a potentially pronounced long

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Speaker 1: term economic downturn. Yeah, well, I think it's clear when

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Speaker 1: you look at our performance relative. Here's this past quarter

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Speaker 1: that we've been gaining share, uh and where a smaller

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Speaker 1: player than many of the others, and so I think

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Speaker 1: there's a lot more opportunity for us to pick up share.

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Speaker 1: That said, we know we outran a decelerating ad market

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Speaker 1: this past quarter, and you know the market looks to

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Speaker 1: still be choppy, and so we're looking to make sure

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Speaker 1: that we show up with really great value for our advertisers.

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Speaker 1: And we're doing that through you know, a number of dimensions.

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Speaker 1: You know, a couple of which I mentioned around really

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Speaker 1: help helping the advertisers meet the users throughout the full funnel.

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Speaker 1: I think that's quite unique when you compare us to

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Speaker 1: other social media platforms. Most of them have the user

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Speaker 1: and sort of a lean back entertainment mode where the

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Speaker 1: user is there for some other purpose, whether it's to

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Speaker 1: watch a funny dance video or to view pictures of

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Speaker 1: their friends. People come on Pinterest looking for products. More

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Speaker 1: than half of them are there to shop, and so

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Speaker 1: they're there with an intent and a purpose. And the

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Speaker 1: fact that we get users at the upper, mid and

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Speaker 1: lower stage of their journeys means that we're able to

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Speaker 1: help the advertiser connect across those and really meet users

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Speaker 1: at this sort of magic moment where they have an idea,

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Speaker 1: a general idea of what they want, but they haven't

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Speaker 1: decided what to buy yet, and so that's really cutting through.

429
00:22:41,520 --> 00:22:44,760
Speaker 1: And then finally, I just say, you know, every CMO

430
00:22:44,840 --> 00:22:47,120
Speaker 1: out there has been approached by their CFO saying Okay,

431
00:22:47,119 --> 00:22:50,040
Speaker 1: you've got to go drive performance, and sometimes that results

432
00:22:50,040 --> 00:22:53,840
Speaker 1: in a bit of a Sophie's choice where that means

433
00:22:53,880 --> 00:22:56,679
Speaker 1: that they oftentimes rushed to last click, but it means

434
00:22:56,720 --> 00:22:58,560
Speaker 1: they're not getting to tell their brand story. And what

435
00:22:58,640 --> 00:23:02,760
Speaker 1: pinterest is delivering that we're finding really resonant with advertisers

436
00:23:02,880 --> 00:23:05,280
Speaker 1: is the ability to tell their brand story in a

437
00:23:05,359 --> 00:23:08,520
Speaker 1: performant way because we do have the lower funnel aspect

438
00:23:08,520 --> 00:23:11,280
Speaker 1: of that as well, and and can connect across that

439
00:23:11,280 --> 00:23:13,919
Speaker 1: that user journey. Let's talk a little bit about users,

440
00:23:13,960 --> 00:23:19,000
Speaker 1: because obviously investors are excited about the reignition of growth.

441
00:23:19,000 --> 00:23:22,639
Speaker 1: Here we had Mark Mhaney, who covers pinterest on earlier

442
00:23:22,680 --> 00:23:24,720
Speaker 1: in the show, he said, to be fair, expectations for

443
00:23:24,760 --> 00:23:27,399
Speaker 1: Pinterests were low, though he is very optimistic about you

444
00:23:27,480 --> 00:23:31,080
Speaker 1: coming in and you know, bringing a new perspective on

445
00:23:31,119 --> 00:23:33,919
Speaker 1: how to manage this company. What are you doing to

446
00:23:34,040 --> 00:23:37,480
Speaker 1: attract gen z and how and what is the evidence

447
00:23:37,680 --> 00:23:41,399
Speaker 1: that that is working. Yeah, so you know, we return

448
00:23:41,440 --> 00:23:43,360
Speaker 1: to user growth this quarter. We stabilize the user based

449
00:23:43,560 --> 00:23:46,440
Speaker 1: based return to user growth, and we really doing doing

450
00:23:46,480 --> 00:23:50,280
Speaker 1: that by leaning into the uniqueness of the platform. When

451
00:23:50,280 --> 00:23:52,040
Speaker 1: you think about it as a positive place and a

452
00:23:52,080 --> 00:23:54,760
Speaker 1: place where people go with intent and purpose, it really

453
00:23:54,800 --> 00:23:57,760
Speaker 1: is unique across social media. It's also quite unique and

454
00:23:57,800 --> 00:24:00,000
Speaker 1: that it's a place where people go to express their creativity.

455
00:24:00,760 --> 00:24:03,600
Speaker 1: And so we're leveraging those things, leaning into them more,

456
00:24:04,400 --> 00:24:07,000
Speaker 1: drawing the contrast from the rest of social media, and

457
00:24:07,520 --> 00:24:11,080
Speaker 1: you know, really leveraging the unique human curation that happens

458
00:24:11,080 --> 00:24:15,000
Speaker 1: on our platform to drive better and more personalized experiences

459
00:24:15,040 --> 00:24:17,840
Speaker 1: for our users. To give you a tangible example of that,

460
00:24:18,200 --> 00:24:20,159
Speaker 1: you know, you can go lots of places to find

461
00:24:20,359 --> 00:24:23,320
Speaker 1: a great new dress, but if you think about how

462
00:24:23,320 --> 00:24:26,199
Speaker 1: to put together a great outfit and what handbag and

463
00:24:26,240 --> 00:24:28,520
Speaker 1: shoes and accessories might go really well with that dress.

464
00:24:29,119 --> 00:24:31,520
Speaker 1: M Yes, we're doing a lot with machine learning, as

465
00:24:31,520 --> 00:24:34,359
Speaker 1: many others are, but machine learning is only as good

466
00:24:34,400 --> 00:24:36,840
Speaker 1: as a signal that is acting upon, and we have

467
00:24:37,000 --> 00:24:39,320
Speaker 1: hundreds of millions of pinners that come to our platform

468
00:24:39,760 --> 00:24:42,879
Speaker 1: and curate boards that tell us what kind of accessories

469
00:24:42,960 --> 00:24:44,920
Speaker 1: might go well with that dress. So when you get

470
00:24:44,960 --> 00:24:48,080
Speaker 1: recommendations here, it's not just from really great machine learning,

471
00:24:48,280 --> 00:24:51,719
Speaker 1: it's really great machine learning acting upon signals from hundreds

472
00:24:51,720 --> 00:24:54,600
Speaker 1: of millions of pinners that are telling us what things

473
00:24:54,640 --> 00:24:56,800
Speaker 1: go well together, whether it's putting together an outfit, or

474
00:24:56,800 --> 00:24:59,000
Speaker 1: putting together a room, or thinking about how to put

475
00:24:59,040 --> 00:25:02,200
Speaker 1: together really great holiday plans for what a great meal

476
00:25:02,280 --> 00:25:06,240
Speaker 1: might be. All these things. We have great human curation

477
00:25:06,280 --> 00:25:08,800
Speaker 1: that happens on the platform at scale. They're just completely

478
00:25:08,840 --> 00:25:10,360
Speaker 1: unique across the space. I don't think you really see

479
00:25:10,359 --> 00:25:12,720
Speaker 1: it happening any place else. And we pair that with

480
00:25:12,800 --> 00:25:16,560
Speaker 1: great machine learning, great advertising capabilities. It's really cutting through

481
00:25:16,600 --> 00:25:19,119
Speaker 1: to drive user growth and revenue growth. Now, even the

482
00:25:19,119 --> 00:25:21,879
Speaker 1: point that Pinteresque you see as as being very different

483
00:25:21,920 --> 00:25:25,119
Speaker 1: from other social media platforms, I'm so curious what you

484
00:25:25,160 --> 00:25:28,640
Speaker 1: think about what's happening at Twitter. You know, it's unclear

485
00:25:28,760 --> 00:25:30,880
Speaker 1: what the business model is even going to be unclear

486
00:25:30,960 --> 00:25:34,240
Speaker 1: whether advertisers are going to stick around. Is Twitter under

487
00:25:34,280 --> 00:25:37,960
Speaker 1: Elon Musk, possibly an opportunity for pinterrests to take some

488
00:25:38,119 --> 00:25:41,000
Speaker 1: of those ad dollars or even to take some of

489
00:25:41,040 --> 00:25:45,400
Speaker 1: that mind share, or is it a totally different proposition. Well,

490
00:25:45,440 --> 00:25:47,919
Speaker 1: I mean, I can't comment on any one specific player,

491
00:25:47,960 --> 00:25:50,000
Speaker 1: but I would say that when you compare pinterest to

492
00:25:50,080 --> 00:25:53,240
Speaker 1: social media more broadly, Uh, First, I'd say, you know

493
00:25:53,240 --> 00:25:57,080
Speaker 1: where this really unique intersection between social search and commerce,

494
00:25:57,440 --> 00:25:59,920
Speaker 1: which is totally different than other platforms. I think when

495
00:26:00,040 --> 00:26:02,359
Speaker 1: add on to that the positive nature of our platform,

496
00:26:02,480 --> 00:26:05,720
Speaker 1: which we tune for intentionally, uh, and we hear from

497
00:26:05,800 --> 00:26:09,040
Speaker 1: users that it's a place that they feel uplifted, they

498
00:26:09,040 --> 00:26:12,479
Speaker 1: feel inspired, whereas oftentimes on other platforms they're you know,

499
00:26:12,560 --> 00:26:16,399
Speaker 1: seeing people shout about their politics or you know, you

500
00:26:16,400 --> 00:26:19,640
Speaker 1: know generally activity that you can lead them feeling leave

501
00:26:19,680 --> 00:26:21,840
Speaker 1: them feeling anxious or depressed or these kinds of things.

502
00:26:22,200 --> 00:26:24,239
Speaker 1: And they feel lifted up on our platform. And so

503
00:26:24,280 --> 00:26:26,520
Speaker 1: we're leaning into that, and as we do that, it

504
00:26:26,560 --> 00:26:29,160
Speaker 1: makes it a brand safe space for advertisers. And so

505
00:26:29,600 --> 00:26:32,600
Speaker 1: that's something that advertisers understood about Penchess for some time.

506
00:26:32,920 --> 00:26:34,640
Speaker 1: We're leaning more and more into that and we're seeing

507
00:26:34,680 --> 00:26:36,720
Speaker 1: it cut through more and more versus the rest of

508
00:26:36,720 --> 00:26:40,960
Speaker 1: social media. How has your Google commerce background come into

509
00:26:41,000 --> 00:26:43,840
Speaker 1: play thus far and have you had any sort of

510
00:26:43,920 --> 00:26:46,840
Speaker 1: light bulb moments about how to make that connection from

511
00:26:46,840 --> 00:26:49,439
Speaker 1: something you see on pinter as to something that you

512
00:26:49,600 --> 00:26:54,520
Speaker 1: buy much more concrete? Well, this is a great question

513
00:26:54,600 --> 00:26:59,080
Speaker 1: because while Pinterest is a full funnel platform, uh, you know,

514
00:26:59,280 --> 00:27:01,800
Speaker 1: his historically been stronger in the upper and mid funnel,

515
00:27:01,800 --> 00:27:03,480
Speaker 1: where people would find a lot of things they found

516
00:27:03,520 --> 00:27:07,160
Speaker 1: interesting on Pinterest, but then they have to go somewhere

517
00:27:07,200 --> 00:27:10,000
Speaker 1: else to go act upon that. And part of what

518
00:27:10,040 --> 00:27:12,960
Speaker 1: we're doing is making sure that as people find things

519
00:27:12,960 --> 00:27:15,600
Speaker 1: on Pinterest, that we're leaning into that intent to action,

520
00:27:15,640 --> 00:27:17,560
Speaker 1: making things much more actionable. So I talked about on

521
00:27:17,600 --> 00:27:19,840
Speaker 1: our earnings call. We want to make it so that

522
00:27:20,359 --> 00:27:22,800
Speaker 1: every image of every product that you encounter on Pinterest

523
00:27:22,920 --> 00:27:26,320
Speaker 1: becomes shoppable, whether you find that in a scene or

524
00:27:26,359 --> 00:27:28,840
Speaker 1: in user generated content. When you see a great product,

525
00:27:29,320 --> 00:27:31,520
Speaker 1: even if it's you know, some celebrity that's wearing it,

526
00:27:31,560 --> 00:27:33,280
Speaker 1: you say, oh, I want that product or I want

527
00:27:33,320 --> 00:27:35,919
Speaker 1: that same look. Uh. That we're making that more and

528
00:27:35,920 --> 00:27:39,040
Speaker 1: more shoppable for people. And as we do that, connecting

529
00:27:39,040 --> 00:27:41,679
Speaker 1: that intent to action strengthens the lower funnel part of

530
00:27:41,680 --> 00:27:44,600
Speaker 1: our business, and we think there's a lot more opportunity

531
00:27:45,080 --> 00:27:47,359
Speaker 1: to go there. I think it's historically again been a

532
00:27:47,400 --> 00:27:50,160
Speaker 1: place where the platform wasn't as strong, and we're making

533
00:27:50,160 --> 00:27:52,639
Speaker 1: that much stronger over time. And there's good progress already.

534
00:27:52,720 --> 00:27:54,879
Speaker 1: I talked about shopping as being up fifty year on

535
00:27:55,000 --> 00:27:59,480
Speaker 1: year conversions, so really good progress there, but a lot

536
00:27:59,520 --> 00:28:01,800
Speaker 1: more to do there and as we do it that

537
00:28:01,920 --> 00:28:04,720
Speaker 1: will be better and better engagement for users and also

538
00:28:04,960 --> 00:28:09,160
Speaker 1: really great advertising opportunities for our partners. Now, your collage

539
00:28:09,280 --> 00:28:13,160
Speaker 1: making app, Shuffles, has seen really good traction, I know,

540
00:28:13,920 --> 00:28:18,960
Speaker 1: especially in the United States, helping with engagement and active users.

541
00:28:19,840 --> 00:28:24,080
Speaker 1: What's the longer term vision there and how can you

542
00:28:24,119 --> 00:28:26,240
Speaker 1: integrate sort of what you're learning from Shuffles into the

543
00:28:26,240 --> 00:28:30,879
Speaker 1: broader experience. Yeah, so great question, Emily, Shuffles. We've been,

544
00:28:31,359 --> 00:28:33,919
Speaker 1: you know, quite excited by the progress with Shuffles. There

545
00:28:33,920 --> 00:28:37,000
Speaker 1: are college making app that has just really resonated with

546
00:28:37,080 --> 00:28:40,640
Speaker 1: gen Z and I think it's indicative of how there

547
00:28:40,680 --> 00:28:43,280
Speaker 1: are a number of adjacent use cases that we can

548
00:28:43,320 --> 00:28:46,680
Speaker 1: explore with Pinterest. They really lean into the unique nature

549
00:28:46,680 --> 00:28:48,320
Speaker 1: of our platform where we do have people in that

550
00:28:48,440 --> 00:28:51,840
Speaker 1: lean forward mode looking to express our creativity. So I

551
00:28:51,840 --> 00:28:54,080
Speaker 1: think we have license to bring those kinds of experiences

552
00:28:54,080 --> 00:28:56,840
Speaker 1: to users. Shuffles is one example of that, and I

553
00:28:56,920 --> 00:28:58,880
Speaker 1: also say it's just one example of how we're cutting

554
00:28:58,920 --> 00:29:02,600
Speaker 1: through with gen Z. Even separate from Shuffles, our gen

555
00:29:02,720 --> 00:29:06,360
Speaker 1: Z user base has more than doubled since Q three

556
00:29:06,360 --> 00:29:09,640
Speaker 1: of nineteen, and for this quarter it was our fastest

557
00:29:09,680 --> 00:29:14,719
Speaker 1: growing demographic. So Pinterests is cutting through with gen Z users,

558
00:29:14,880 --> 00:29:16,240
Speaker 1: and I think for a lot of the reasons that

559
00:29:16,440 --> 00:29:19,760
Speaker 1: I shared already that it is a positive place. It's

560
00:29:19,840 --> 00:29:22,520
Speaker 1: a bit of an oasis in the world of social

561
00:29:22,520 --> 00:29:26,239
Speaker 1: media for free users, where uh, it's a it's a

562
00:29:26,280 --> 00:29:28,680
Speaker 1: smaller circle. It's a place where the who you know

563
00:29:28,760 --> 00:29:33,160
Speaker 1: collaborate with closer friends versus you know, having to worry

564
00:29:33,160 --> 00:29:35,880
Speaker 1: about being shouted down or these kinds of things. Uh.

565
00:29:35,920 --> 00:29:39,080
Speaker 1: It's just felt as a safer and more inspiring space

566
00:29:39,200 --> 00:29:42,560
Speaker 1: by many users. And so that's really resonating with gen Z,

567
00:29:42,680 --> 00:29:45,160
Speaker 1: and as we give them more and more tools like Shuffles,

568
00:29:45,680 --> 00:29:47,080
Speaker 1: we think there's a lot more we can do to

569
00:29:47,120 --> 00:29:49,880
Speaker 1: serve that as a great up and coming demographic. Alright,

570
00:29:50,040 --> 00:29:53,120
Speaker 1: pinterest CEO Bill already, Bill, thank you so much for

571
00:29:53,200 --> 00:29:57,200
Speaker 1: joining us as always created from you. Appreciate the extended conversation.

572
00:29:57,280 --> 00:29:59,320
Speaker 1: All right, coming up, getting a second look. A new

573
00:29:59,360 --> 00:30:02,080
Speaker 1: team is taking a crack and investigating Tether and whether

574
00:30:02,120 --> 00:30:06,080
Speaker 1: the stable coin executives committed a crime. That is next.

575
00:30:06,440 --> 00:30:25,760
Speaker 1: This is Bloomberg, a Justice Department probe into the stable

576
00:30:25,760 --> 00:30:28,040
Speaker 1: coin Tether is getting a fresh pair of eyes after

577
00:30:28,040 --> 00:30:31,400
Speaker 1: struggling to reach a conclusion. Joining us now our Bloomber

578
00:30:31,440 --> 00:30:34,880
Speaker 1: crypto reporter Matt Robinson And Matt, it's very unusual to

579
00:30:35,000 --> 00:30:38,440
Speaker 1: redirect an investigation like this. What exactly is the d

580
00:30:38,520 --> 00:30:42,480
Speaker 1: o J looking into? Right? So, the Justice Department has

581
00:30:42,520 --> 00:30:44,880
Speaker 1: long been looking into Tether the last few years about

582
00:30:45,200 --> 00:30:48,040
Speaker 1: a variety of its statements, for for instance, how much

583
00:30:48,280 --> 00:30:51,240
Speaker 1: money they have to back the stable coin, also to

584
00:30:51,400 --> 00:30:54,080
Speaker 1: what they told banks when they were transacting. So this

585
00:30:54,160 --> 00:31:01,160
Speaker 1: investigation started with Maine justin has moved to prosecutors in Manhattan. UM.

586
00:31:01,200 --> 00:31:03,200
Speaker 1: So they're looking to see if any sort of you know,

587
00:31:03,400 --> 00:31:06,400
Speaker 1: if there's bank fraud violations. Uh, you know, given the

588
00:31:06,480 --> 00:31:11,360
Speaker 1: size of um Tether, it's the third largest cryptocurrency beyond

589
00:31:11,600 --> 00:31:15,320
Speaker 1: excuse me, behind bitcoin and Ethereum they want to make

590
00:31:15,320 --> 00:31:17,760
Speaker 1: sure that those uh, you know, what they've told the

591
00:31:17,760 --> 00:31:22,719
Speaker 1: banks and is accurate. Remind us what is tether. This

592
00:31:22,800 --> 00:31:26,960
Speaker 1: is the third largest cryptocurrency. The creators have said it's

593
00:31:27,040 --> 00:31:30,640
Speaker 1: backed by the US dollar. What does it actually mean

594
00:31:30,680 --> 00:31:33,920
Speaker 1: to the crypto ecosystem. It's it's very important. It's very

595
00:31:33,960 --> 00:31:38,080
Speaker 1: unusual part of the excuse me, crypto ecosystem because it's

596
00:31:38,160 --> 00:31:40,360
Speaker 1: it's designed as a stable coin. It's it's like a

597
00:31:40,400 --> 00:31:44,680
Speaker 1: digital uh stand in for dollars. They get started. You know,

598
00:31:44,760 --> 00:31:47,280
Speaker 1: this was time in the industry where you know, there

599
00:31:47,320 --> 00:31:49,480
Speaker 1: wasn't a lot that was stable. They wanted to keep

600
00:31:49,640 --> 00:31:51,760
Speaker 1: your cash or you wanted to keep your dollars and

601
00:31:51,920 --> 00:31:55,000
Speaker 1: something that you know, I wasn't going to move, you know,

602
00:31:55,200 --> 00:31:59,080
Speaker 1: dramatically overnight. So it became just a crucial part of

603
00:31:59,240 --> 00:32:03,200
Speaker 1: the excuse me of the market because often folks, oftentimes

604
00:32:03,240 --> 00:32:06,120
Speaker 1: folks are going to be trading Bitcoin with Tether or

605
00:32:06,400 --> 00:32:09,280
Speaker 1: you know, ethereum and tether. And so it's grown to

606
00:32:09,360 --> 00:32:12,880
Speaker 1: almost seventy billion dollars um, you know, a massive fund

607
00:32:12,920 --> 00:32:16,520
Speaker 1: and and you know, the company has come into some

608
00:32:16,600 --> 00:32:20,520
Speaker 1: other regulatory probes from from other agencies. For instance, the

609
00:32:20,560 --> 00:32:24,600
Speaker 1: CFTC over the amount of money, the amount of cash

610
00:32:24,800 --> 00:32:29,400
Speaker 1: backing their stable coin. So it's an enormously important part

611
00:32:29,400 --> 00:32:32,520
Speaker 1: of the market and how it functions, um, you know,

612
00:32:32,560 --> 00:32:35,520
Speaker 1: with traders being able to use it to to make

613
00:32:35,560 --> 00:32:39,880
Speaker 1: speculative bets on on other cryptocurrencies. What's the likelihood map

614
00:32:39,960 --> 00:32:43,840
Speaker 1: that criminal charges actually happened here? Uh, you know that's

615
00:32:43,880 --> 00:32:47,240
Speaker 1: that's obviously up for d o J to decide. Um.

616
00:32:47,280 --> 00:32:49,800
Speaker 1: You know that, as we reported, the tether is looking

617
00:32:49,800 --> 00:32:54,520
Speaker 1: for declination letters, which is basically the Justice Department saying

618
00:32:54,600 --> 00:32:56,920
Speaker 1: you know, we we've looked at this and now you

619
00:32:56,960 --> 00:33:00,760
Speaker 1: know we're we're declining to pursue any charges. So that

620
00:33:00,760 --> 00:33:03,480
Speaker 1: that's you know, that remains to be seen, all right,

621
00:33:03,560 --> 00:33:06,240
Speaker 1: Bloomberg's Matt Robinson, Matt, thank you so much for that.

622
00:33:06,880 --> 00:33:09,400
Speaker 1: We will follow your reporting to stay up to date

623
00:33:09,440 --> 00:33:21,360
Speaker 1: on this investigation. Workers at a fox Con production plant

624
00:33:21,360 --> 00:33:24,600
Speaker 1: in central China, the largest iPhone factory in the world,

625
00:33:24,920 --> 00:33:28,280
Speaker 1: are walking off the job, hitching rides and dipping into

626
00:33:28,320 --> 00:33:31,760
Speaker 1: their savings to escape another COVID lockdown. Bloomberg's Debby Woo

627
00:33:32,200 --> 00:33:34,680
Speaker 1: has all of the details for us. Debbie, in your story,

628
00:33:34,720 --> 00:33:38,240
Speaker 1: you profile woman named Dong Wan Wan who is literally

629
00:33:38,280 --> 00:33:41,960
Speaker 1: walked I believe twenty five miles um and quit the

630
00:33:42,080 --> 00:33:44,400
Speaker 1: job to get out of there. Tell us more about

631
00:33:44,400 --> 00:33:47,840
Speaker 1: what is happening. So what is happening is COVID recently

632
00:33:47,920 --> 00:33:52,760
Speaker 1: yells right through well Fox comes up two people's site

633
00:33:52,800 --> 00:33:57,440
Speaker 1: in central China that makes the world's most iPhones. And

634
00:33:57,920 --> 00:34:00,920
Speaker 1: after lot also following a lot, the we have seen

635
00:34:00,920 --> 00:34:05,200
Speaker 1: no trash piling up in dormitories nearly campused. And also

636
00:34:05,280 --> 00:34:08,960
Speaker 1: that the people who got into a quarantine sometimes are

637
00:34:09,040 --> 00:34:13,040
Speaker 1: not getting uh meals meals in time, and then uh

638
00:34:13,280 --> 00:34:16,000
Speaker 1: sometimes they are just uh sort of getting only a

639
00:34:16,080 --> 00:34:20,719
Speaker 1: bread for meals. So because of all these issues, uh,

640
00:34:20,800 --> 00:34:23,640
Speaker 1: some workers have decided that they just want to quit

641
00:34:23,800 --> 00:34:26,160
Speaker 1: and go home. And because of a lack of our

642
00:34:26,200 --> 00:34:31,680
Speaker 1: transportation and also strict COVID controls, let's still uh in

643
00:34:31,760 --> 00:34:35,960
Speaker 1: place in the places at home. So what workers have

644
00:34:36,040 --> 00:34:38,799
Speaker 1: to walk back to where they come from. So in

645
00:34:38,840 --> 00:34:43,400
Speaker 1: the story that we reported, uh list twenty year old

646
00:34:43,400 --> 00:34:46,920
Speaker 1: have to walk about nine hours to get home. You know,

647
00:34:47,080 --> 00:34:50,880
Speaker 1: the rigid you know, sometimes brutal hours at a fox

648
00:34:50,920 --> 00:34:54,799
Speaker 1: can plant has been well documented documented. What is Fox

649
00:34:54,880 --> 00:34:57,960
Speaker 1: can't doing to get around this and is it impacting

650
00:34:58,360 --> 00:35:02,480
Speaker 1: supply at all because this slowd own iPhone production, So

651
00:35:02,960 --> 00:35:05,680
Speaker 1: what is happening in South fox Song is raising wages

652
00:35:05,800 --> 00:35:08,800
Speaker 1: by almost a third, and then it is also trying

653
00:35:08,840 --> 00:35:12,799
Speaker 1: to get the backup capacity elsewhere online to make sure

654
00:35:12,880 --> 00:35:17,200
Speaker 1: that the supply impact of supply will be minimized. And

655
00:35:17,320 --> 00:35:20,719
Speaker 1: at the same time, UH we have reported previously that

656
00:35:20,840 --> 00:35:26,080
Speaker 1: the UH, due to weakeningment, Apple is actually canceling the

657
00:35:26,560 --> 00:35:30,040
Speaker 1: UH ideas for any more orders for our new iPhones

658
00:35:30,160 --> 00:35:34,600
Speaker 1: this year. So this is like a given economic headwinds

659
00:35:35,760 --> 00:35:40,160
Speaker 1: on the one hand, and also giving UH the number

660
00:35:40,200 --> 00:35:43,879
Speaker 1: of workers require, it's probably not as many I think

661
00:35:43,960 --> 00:35:46,840
Speaker 1: it is. We still need weight kind more time to

662
00:35:47,160 --> 00:35:50,120
Speaker 1: figure out what exactly the impact is coming out of

663
00:35:50,120 --> 00:35:53,960
Speaker 1: this COVID UH incident in Central China and talk to

664
00:35:54,040 --> 00:35:56,520
Speaker 1: us a little bit about how this fits into how

665
00:35:56,719 --> 00:36:00,960
Speaker 1: President she has been handling COVID more recently against the

666
00:36:01,000 --> 00:36:04,479
Speaker 1: backdrop of what's happening with the Chinese Communist Party. So

667
00:36:05,320 --> 00:36:10,080
Speaker 1: after the party congress originally previously, people may be expecting

668
00:36:10,120 --> 00:36:12,839
Speaker 1: that there may be indication that China can come out

669
00:36:12,880 --> 00:36:16,520
Speaker 1: of UH. THEREI COVID and then no focus more on

670
00:36:16,880 --> 00:36:21,719
Speaker 1: economic growth, but clearly it's not happening. So for instance,

671
00:36:22,120 --> 00:36:26,399
Speaker 1: in uh Hanan or in a Zeno where are foxhansa

672
00:36:26,600 --> 00:36:31,239
Speaker 1: iPhone campus is located in the local leaders there are

673
00:36:31,280 --> 00:36:35,120
Speaker 1: still uh saying that they need to a prioritize zero

674
00:36:35,239 --> 00:36:40,399
Speaker 1: COVID and then not to implement COVID combating measures. So

675
00:36:40,480 --> 00:36:42,920
Speaker 1: I think it is going to be a bit difficult

676
00:36:42,960 --> 00:36:45,360
Speaker 1: and challenging for what China ready to come out of

677
00:36:45,640 --> 00:36:48,200
Speaker 1: zero COVID, And then I think it's hard to predict

678
00:36:48,480 --> 00:36:53,680
Speaker 1: when list might be a completely uh go away. All right,

679
00:36:53,960 --> 00:36:57,720
Speaker 1: Uh well, your story definitely worth a read, reading about

680
00:36:58,040 --> 00:37:00,560
Speaker 1: Don Juan Wan and many more that we will for

681
00:37:00,600 --> 00:37:03,319
Speaker 1: Bloomberg News. Thank you, and that does it for this

682
00:37:03,480 --> 00:37:06,360
Speaker 1: edition of Bloomberg Technology. Make sure you tune in Tuesday

683
00:37:06,400 --> 00:37:09,799
Speaker 1: our conversation which uber CEO Dara CAUs Rashah after the

684
00:37:09,800 --> 00:37:12,640
Speaker 1: company reports results. You don't want to miss that. And

685
00:37:12,760 --> 00:37:15,759
Speaker 1: of course check out our podcast wherever you get your podcasts.

686
00:37:15,760 --> 00:37:18,840
Speaker 1: I'm Emily Changing, San Francisco. This is Bloomberg