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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.

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Speaker 2: From Mahart where Innovation, money and power Collie in Silicon

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Speaker 2: Valley NBN. This is Bloomberg Technology with Caroline Hyde and

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Speaker 2: Ed Ludlove.

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Speaker 3: Live from New York. This is Bloomberg Technology coming up.

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Speaker 3: Bitcoin saws close to ninety thousand and then pulls back

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Speaker 3: as tech market shows signs of fatigue. We discuss where

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Speaker 3: next for the Trump rally. Meanwhile, Tesla takes a breather

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Speaker 3: after a forty percent surge since the election. Are the

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Speaker 3: Elon Inc. Investments overdone? And fundamentals and focus as we

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Speaker 3: dig into earnings with Shopify president among the executives joining

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Speaker 3: the show. But first we just check in on what

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Speaker 3: perhaps is a slight pullbuck for what has a phenomenal

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Speaker 3: rally across tech companies and indeed across crypto. We're down

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Speaker 3: just by about a ten per percent on the Nasdaq

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Speaker 3: one hundred. Nvidia still on the higher side. Tesla drags

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Speaker 3: us down from a points perspective after a real rapid

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Speaker 3: run up. Says the election results on Wednesday, I'm looking

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Speaker 3: what's happening in the world of crypto? What by one

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Speaker 3: and a half percent at one point this number was

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Speaker 3: so close to ninety thousand dollars in excess of eighty

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Speaker 3: nine thousand, we draw back someone after we see technical

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Speaker 3: signs of overbought if you're looking at the RSI, But

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Speaker 3: overall we're also just seeing maybe a pause in the

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Speaker 3: realities that have been a more than one hundred percent

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Speaker 3: jump in bitcoin so far this year and a more

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Speaker 3: than three trillion dollar market capitalization of the ecosystem in

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Speaker 3: and of itself when you're looking at digital assets. Shanali

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Speaker 3: Bassack is here for more, and boy have we come far,

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Speaker 3: and maybe just.

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Speaker 4: A bit of a pause here, a bit of a

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Speaker 4: pause to your point, that ninety thousand dollars level is

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Speaker 4: one to watch, I would say, Caroline. What it's incredible

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Speaker 4: is even those in the crypto community watch what was

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Speaker 4: happening this week with r because it was so stunning

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Speaker 4: rise Jess yesterday alone. And you have to remember since

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Speaker 4: before the election, bitcoin was trading at under seventy thousand

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Speaker 4: dollars and so that rise to almost ninety thousand dollars.

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Speaker 4: If you bought one bitcoin the day before the election,

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Speaker 4: you're almost twenty thousand dollars richer for it. And you're

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Speaker 4: seeing crypto link stocks also take a breather. The coin

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Speaker 4: base for examples, take just their eight day gain. It

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Speaker 4: is seventy five percent. So the run up you've seen

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Speaker 4: is just tremendous, and you have to also take a note.

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Speaker 5: How much news there still is to come.

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Speaker 4: Typically in a new administration, you would see an SEC chair,

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Speaker 4: for example, step down quite swiftly. We don't know how

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Speaker 4: Gary Gensler is going to behave in this scenario, but

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Speaker 4: any new SEC chief under a Trump administration would really

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Speaker 4: be very telling for the direction of the industry. There

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Speaker 4: are laws that are waiting to be passed when it

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Speaker 4: comes to stable coin. There are questions about whether they

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Speaker 4: will be a play out of the promise.

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Speaker 5: Of a strategic bitcoin reserve.

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Speaker 4: And later today we'll be talking to Marathon as well,

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Speaker 4: and we'll talk a little bit about that mining promise,

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Speaker 4: this kind of made in America crypto story, and how

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Speaker 4: possible that is and how quickly that could.

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Speaker 3: Ramp up as and when it becomes the crypto capital

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Speaker 3: of the United States. At least that's the promise, Shanali.

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Speaker 3: There are people though, in the meantime, making a whole

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Speaker 3: lot of money. You just mentioned about how much you'd

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Speaker 3: be up if you've been long bitcoined, But it took

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Speaker 3: us through some of the billionaires doing well.

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Speaker 4: Yeah, think about Mike Novogratz alone, for example, and he

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Speaker 4: is a few billion dollars richer just off the most

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Speaker 4: recent rally, and it really is just wealth simply tied

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Speaker 4: to crypto. The Winklevi as well, Winklevoss twins of course,

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Speaker 4: have had a tremendous comeback story. And you think about

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Speaker 4: not just the most recent comeback and how much they've

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Speaker 4: gained in the most recent rally, but where they were just.

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Speaker 5: A couple of years before.

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Speaker 4: The CEO of Binance as well, remember he had retained

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Speaker 4: his stake in the cryptocurrency exchange.

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Speaker 5: And when we think.

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Speaker 4: About this as well, how are they making money? It's

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Speaker 4: not just their holdings in bitcoin, but of course the

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Speaker 4: enterprises that they oversee and the variety of assets they

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Speaker 4: hold in the crypto community.

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Speaker 5: You are seeing here.

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Speaker 4: Now not just the surge you've seen in Bitcoin alone,

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Speaker 4: but things like Solana and dogecoin, and then the exchanges,

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Speaker 4: as we've talked about, that are owned by the likes

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Speaker 4: of cz when it comes to finance and coinbase alone,

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Speaker 4: and Brian Armstrong a billionaire as well.

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Speaker 3: Shanali Beassek. You're going to want to hear more from

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Speaker 3: her and her show Billibog Crypto twelve pm Eastern today,

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Speaker 3: So appreciate you joining. Meanwhile, let's get to what it

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Speaker 3: means for the rest of the market. Joe's as with us.

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Speaker 3: He's managing partner at Millennia Capital, the tech fund focused

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Speaker 3: on VC and growth equity investments. And Joe, we come

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Speaker 3: to you not only because of your expertise in the

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Speaker 3: world of enture capital, but also the former hat used

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Speaker 3: to wear in monetary policy making over at the Federal Reserve.

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Speaker 3: Many now wondering if these markets have rallied too far,

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Speaker 3: particularly if you think about infraationy pressure is coming. What

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Speaker 3: do you think is going on o the Fed right now?

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Speaker 6: Look, let's start from the top.

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Speaker 7: So I think the next two years are going to

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Speaker 7: be really, really good for investments, So let's start with

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Speaker 7: monitored policy. There's the easing cycle, not only in the

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Speaker 7: US but globally, so capital is flowing back into financial markets,

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Speaker 7: equity markets, and that will take kind of a year

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Speaker 7: to materialize.

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Speaker 3: But the easing cycle will continue even with tariffs.

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Speaker 7: On them, because once the ship starts pivoting, it just

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Speaker 7: doesn't stop overnight. And even if let's say we thought

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Speaker 7: the terminal rate was going to be twenty a half,

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Speaker 7: maybe now with teriffs and other stuff, maybe they'll end

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Speaker 7: it at three percent. That's still going to be a

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Speaker 7: lot easier than today at five percent. And then on

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Speaker 7: the other side of fiscal policies, on the fiscal policy side,

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Speaker 7: you're going to see the administration and the Congress working

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Speaker 7: together to put a lot of I think stimulus into

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Speaker 7: the economy, into the real economy. So when you come

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Speaker 7: by monitor and fiscal you've got two things working at once.

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Speaker 7: And that's why you know, I'd expect they're really economy

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Speaker 7: to grow by two to three percent for the next

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Speaker 7: few years. And if you're in tech investing, if you're kids,

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Speaker 7: you'll probably benefit. So the rally we're seeing, I think

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Speaker 7: is an early reflection of that. And I don't think

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Speaker 7: this rallies even stop or past.

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Speaker 3: Okay, so who leads us higher? And the moment on

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Speaker 3: the day and video still manages to be above water

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Speaker 3: when the rest of the tech market pulls back a bit,

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Speaker 3: is it still the AI winners that lead the charge?

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Speaker 7: It has to be because you know, AI is just

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Speaker 7: the latest thing in tech, and you never want a

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Speaker 7: short innovation human progress. AI is just the latest wave

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Speaker 7: in innovation. And so we're in your or in the

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Speaker 7: second ending of this AI cycle that's going to run

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Speaker 7: for ten to fifteen years, and so AI is going

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Speaker 7: to track Let's see, let's say real TDP is in

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Speaker 7: a row two percent without AI. I think with AI,

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Speaker 7: real TDP will probably grow by three percent approximately cager

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Speaker 7: over the coming years. And AI is not only attracting

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Speaker 7: a lot of investments, but it's also going to spin

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Speaker 7: off a lot of applications.

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Speaker 6: We're seeing someone that inventory capital.

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Speaker 7: You see AI in robotics, you see AI in search,

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Speaker 7: AI in healthcare, and AI AI agents.

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Speaker 6: So in a coming two to five.

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Speaker 7: Years, you're going to see a lot of new categories

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Speaker 7: coming out and with a lot of new products, businesses

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Speaker 7: and in bestwins. And that's kind of what's going to

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Speaker 7: drive real GDP forward.

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Speaker 3: So when people question the return on AI, when people

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Speaker 3: are wondering, Okay, look, I see the hyperscale is putting

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Speaker 3: ever more money into in video, but I'm not seeing

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Speaker 3: impact my life or indeed broad now you say, just

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Speaker 3: patients two things.

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Speaker 7: One, these things grow like this, it's you know, we're

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Speaker 7: at that early inflection point. The second thing, which I'll

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Speaker 7: give like a very silly analogy that I've given our

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Speaker 7: partners and I think my our.

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Speaker 6: Partners love it.

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Speaker 7: Let's say you have a few plans in your house

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Speaker 7: you're looking at every single day.

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Speaker 6: You're like, you're not growing.

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Speaker 7: You go on vacation for weeks, you come back, the

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Speaker 7: plan's gotten twice taller. So I think that the naysayers

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Speaker 7: are looking at these things every single day. But what

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Speaker 7: you got to do as an investor is to take

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Speaker 7: a step back, check on these businesses and your portfolio

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Speaker 7: companies every three to six nine months. You'll see that

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Speaker 7: there's actually a lot of progress being made in our portfolio,

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Speaker 7: in our ecosystem. We're seeing entrepreneurs coming out of incumbents

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Speaker 7: every single day, coming out of some of the companies

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Speaker 7: that STA build a landa and they're.

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Speaker 6: Building new businesses.

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Speaker 7: It does take two to five years to really building

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Speaker 7: enduring business. Probably more so, I think we're just being

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Speaker 7: a bit impatient.

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Speaker 3: I'm looking at a portfailure. Now, we've got some interesting

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Speaker 3: companies and let's just take for example, SpaceX, LED by

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Speaker 3: one Elam Musk, who is now very close to the

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Speaker 3: seat of power. How much does that make you feel

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Speaker 3: as ultimately your view on Elon Musk being able to

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Speaker 3: handle all these different roles is different job titles, whether

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Speaker 3: or not it's an official role in the cabinet or not.

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Speaker 3: Do you still want to be backing the companies that

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Speaker 3: he builds?

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Speaker 7: Well, Look, we're very fortunate to have invested in many

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Speaker 7: companies that are category leaders in AI in various sector's cloud.

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Speaker 7: And I think on this entrepreneur, and I can't talk

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Speaker 7: too much about it. The one thing that I'll say is,

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Speaker 7: and I'm gonna use another silly analogy, you don't bet

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Speaker 7: against the greatest entrepreneur of all time before he's even

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Speaker 7: hit his prime. And I think, you know, so, I

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Speaker 7: think whether it's this company or other companies, we take

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Speaker 7: a long view and in fact, post liquidity events for

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Speaker 7: these investments with distribute stocks to our investors as the

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Speaker 7: management from scaling offices and our capital.

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Speaker 6: Base is long term focused.

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Speaker 7: So I think we're going to be holding these stocks

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Speaker 7: for the next five, ten, fifteen years, and we're really

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Speaker 7: betting on what's coming for you know, down the pipeline.

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Speaker 3: Do you bet against companies he's taken issue with because

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Speaker 3: he's taking an issue with opening.

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Speaker 7: No, No, like I think that in you know, again,

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Speaker 7: we're long AI, We're long tech, we're long innovation, We're

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Speaker 7: long of the American economy. And I think that I think,

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Speaker 7: you know, there are some folks I've encounters who are

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Speaker 7: really really negative on some of these things.

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Speaker 6: And what I'll say is.

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Speaker 7: You can short a stock in the short term, but

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Speaker 7: you can't short any economy. If you're short innovation, human spirit,

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Speaker 7: and the real economy, you might not do so well.

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Speaker 7: So sometimes these stocks will come come up and down,

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Speaker 7: both in public and private markets. But again, as a

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Speaker 7: long term investor, we're supposed to hold a long view

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Speaker 7: and just being these companies for five, ten, fifteen years,

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Speaker 7: and I think we'll do fine.

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Speaker 3: What about China or other countries that are trying to

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Speaker 3: build tech ecosystems that the US is ultimately potentially going

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Speaker 3: to start pushing against even harder.

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Speaker 7: You look, I was in the UK, I was in Dubai,

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Speaker 7: I was in Asia, and I think you know there's

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Speaker 7: you know, we're in a UK based ad company, we're

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Speaker 7: in one in Israel and you travel around the world,

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Speaker 7: the US is by far the category leader in this

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Speaker 7: AI race. Everybody else is miles behind, and there's two,

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Speaker 7: three and four might not be you know, are probably

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Speaker 7: very far behind. And I think that this race is

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Speaker 7: only starting just I don't see sort of our positions

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Speaker 7: being challenged yet. But I think competition is greatright because

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Speaker 7: you makes you work harder. But I think if you

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Speaker 7: look at our portfolio, our theusis is we think that

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Speaker 7: this AI boom is going to drag tech earnings and

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Speaker 7: tech growth by a big amount, and that I think

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Speaker 7: in the next ten years we're going to look back

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Speaker 7: like how we looked at the Internet and be like,

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Speaker 7: why don't we invest more?

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Speaker 3: That plant is going to grow a lot of wofully

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Speaker 3: hopefully going to have him here in the studio. Managing

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Speaker 3: partner and Millennium Capital Shopify shares say that twice plenty

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Speaker 3: it's soaring at the moment. Look we're having the best days.

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Speaker 3: It's May twenty twenty three, after the reported third quarter

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Speaker 3: of sales that climbed twenty six percent. This is a

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Speaker 3: sign that the Canadian e commerce company is really gaining

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Speaker 3: momentum with big enterprise clients. European growth. We're going to

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Speaker 3: dig into it with the shop OFFI President, Harley Finkelstein.

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Speaker 3: Great to have you back on the show, Harley, and

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Speaker 3: just talk to us about the growth trajectory here and

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Speaker 3: how you're seeing a shift in particular to enterprise clients.

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Speaker 3: Can you talk us through it?

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Speaker 1: Absolutely, I mean it was a great quarter, certainly.

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Speaker 8: GMV was up twenty four percent to sixty nine billion,

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Speaker 8: revenue was up twenty six percent to two point two billion,

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Speaker 8: and free cashual margin expanded in nineteen percent. So I

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Speaker 8: think what you're seeing is you're seeing us grow both

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Speaker 8: the top land but also the bottom line. And I

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Speaker 8: think the other thing that, as you sort of point out,

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Speaker 8: which we're really excited about, is that more merchants are

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Speaker 8: coming to Shopify across verticals, across geography, and even across

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Speaker 8: sizes of merchants. In one area that I'm especially proud

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Speaker 8: of is the headway we're making bringing the biggest brands

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Speaker 8: on the planet on to Shopify. In fact, this quarter alone,

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Speaker 8: we saw sixteen enterprise launches on Shopify. Companies like Hanes

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Speaker 8: and on Running and Off White and Victorious secret To

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Speaker 8: coming to us as well. And so I think We're

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Speaker 8: really substantial that we're not just an e commerce company

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Speaker 8: for a domestic type of merchant, but we can handle

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Speaker 8: the largest businesses that want to sell globally.

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Speaker 3: And as you said, companies that are globally based as well.

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Speaker 3: Europe really shining a light where many would perhaps feel

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Speaker 3: that the European economy might not vindicate that. Tell us

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Speaker 3: about the growth in Germany and France and the light.

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Speaker 1: Yeah, it's remarkable.

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Speaker 8: I mean, you know, we think about international from two

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Speaker 8: sort of vectors. The first is when you set up

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Speaker 8: for Shopify, how can we make it really easy to

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Speaker 8: be default global as opposed to just think about your

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Speaker 8: home country as your total adressable market on Shopify using

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Speaker 8: things like managed markets, you can immediately sell everywhere. But

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Speaker 8: the other vector is also merchants that come to Shopify.

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Speaker 8: And if you look at international GMV that outpaced North

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Speaker 8: America at over thirty percent year on year in Q three.

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Speaker 8: European specific GMV grew over thirty five percent in Q

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Speaker 8: three year on year, that was led by UK, Germany,

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Speaker 8: France and the Netherlands. And if you look at the

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Speaker 8: merchant base itself, international merchants increased by thirty six percent

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Speaker 8: year over year.

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Speaker 1: So we're seeing success, certainly in North.

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Speaker 8: America and the English speaking world, but we're all seeing

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Speaker 8: a lot of success right now in era.

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Speaker 3: A lot of that has been perhaps you've been enticing

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Speaker 3: these new clients because you in particular hardly have been

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Speaker 3: willing to spend on sales and marketing. How much does

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Speaker 3: that remain more than three hundred million dollar endeavor on

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Speaker 3: a quarter?

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Speaker 8: Yeah, I mean the way we think about first of all,

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Speaker 8: up until very recently, you know, the focus on Shaft

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Speaker 8: was product and we only started building our go to

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Speaker 8: market engine specifically for the enterprise in the last you know,

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Speaker 8: two years or so, and it's really starting to work.

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Speaker 8: When you combine really good, strong execution on go to

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Speaker 8: market with really great marketing, the results speak for themselves.

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Speaker 1: The way we think about marketing, though, is very scientific.

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Speaker 8: We have very strong guardrails in eighty month payback is

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Speaker 8: that we look for and when we see opportunities to

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Speaker 8: spend to get a proper return in a proper you know,

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Speaker 8: payback period, we spend and if we don't, we do

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Speaker 8: pull back. But the content that the entire philosophy around

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Speaker 8: marketing is ROI driven. We experiment if we see results,

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Speaker 8: we double.

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Speaker 3: Down and many singling out the operating margin nineteen percent.

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Speaker 3: Liking that. So sticking to that particular focus, I'm interested

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Speaker 3: in the expansion. Basically, you've always been known as this

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Speaker 3: provider of tools for mum and pop shops, and now

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Speaker 3: clearly it is growing. The enterprise size is growing, the

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Speaker 3: international focus is growing, and also wholesale is growing. What

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Speaker 3: about this B to B element, It's pretty remarkable.

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Speaker 8: I mean, you know, this all started because of existing

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Speaker 8: merchants on Shopify who are very very strong and direct

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Speaker 8: to consumer, you know, selling director to the end consumer

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Speaker 8: began to ask us if we can also help them

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Speaker 8: sell wholesale sell to their on the B to B

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Speaker 8: side of things, and so we started probablybout two and

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Speaker 8: a half years ago, put in together a very compelling product.

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Speaker 8: You allow existing merchants to also sell to also sell

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Speaker 8: to to in a B to B fashion. The end

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Speaker 8: result is that a lot of B to B only

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Speaker 8: exclusive merchants began to come to Shopify, companies like Carrier

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Speaker 8: that are using shopla to sell industrial heating and cooling,

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Speaker 8: you know, pieces of technology and engines. And the result

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Speaker 8: is that B to B GMB grew over one hundred

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Speaker 8: and forty five percent your of UR and Q three.

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Speaker 8: That's five consecutive quarters of triple digit B to B

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Speaker 8: GMB growth. And so you know, you use a great

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Speaker 8: term before you said, you know, we started as as

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Speaker 8: SMB and specific, but now we're also seeing a lot

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Speaker 8: of success around B to B internationals we talked about,

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Speaker 8: but also offline we are now powering many more large,

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Speaker 8: complex multilocation merchants. In fact, offline GMB was a twenty

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Speaker 8: seven percent year on year. And what you're seeing when

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Speaker 8: you sort of bring this all together is we are

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Speaker 8: creating this unified, single retail operating system so that large

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Speaker 8: brands and small brands can come to us and sell

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Speaker 8: across every single surface area.

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Speaker 3: We've got very little time, Hallie, but what do you

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Speaker 3: put in place if we are going to see more tariffs,

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Speaker 3: how will that affect your business?

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Speaker 8: I mean, we've been operating for twenty years. I've been

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Speaker 8: a shop life for more than a third of my life,

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Speaker 8: and we've seen a lot of administrations come in. Our

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Speaker 8: job is not to try to predict exactly what's going

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Speaker 8: to happen. Whatevery administration is going to do. Our job

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Speaker 8: is to arm our merchants with everything you need to

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Speaker 8: be successful no matter what comes out. And like I said,

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Speaker 8: we've been doing that for more than two decades. We

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Speaker 8: will continue to do that.

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Speaker 3: Haney Finkelstein. Great to have you shop a five President.

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Speaker 3: Thank you. Now let's turn our attention to this year

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Speaker 3: Singles Day Hall. It appears to be one of the

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Speaker 3: biggest yet all according to China's biggest e commace platforms

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Speaker 3: like Ali Baba, like JD dot Com which all is

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Speaker 3: you a raft of numbers showing robust growth showing the

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Speaker 3: country's biggest anial online shopping Gala. But there are some

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Speaker 3: selective disclosures going on from some of the tech leaders.

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Speaker 3: An investors are at to concern they're getting a kind

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Speaker 3: of incomplete picture. Henry Wren has got the inside track

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Speaker 3: for us. What are we worried about? Henry?

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Speaker 9: So Yeah, this year marks the fifteenth anniversary.

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Speaker 6: Of Single Stay.

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Speaker 9: But unlike the previous years where when you have those

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Speaker 9: e commerce platforms throwing our huge watching parties disclosing sales

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Speaker 9: states on our to hour basis, these companies just disclose

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Speaker 9: data on selective basis. For example, JD dot Com said

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Speaker 9: that shoppers on its platform increased by twenty percent, while

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Speaker 9: premium shoppers on Ali Baba's team Ol platforms they increased

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Speaker 9: fifty percent. But as you said, these are all selective disclosures.

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Speaker 9: Alternative data. For example, third party providers said gmbs on

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Speaker 9: e commerce platforms during period increased by twenty seven percent

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Speaker 9: year over year.

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Speaker 6: But we also have to take that with a pinch

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Speaker 6: of salt as.

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Speaker 9: Well, because these days e commerce platforms are elongating their

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Speaker 9: double eleven discount period to almost a month, which is

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Speaker 9: the longest in the fifteen years of history. So all

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Speaker 9: those kinds of data need to take in with a

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Speaker 9: pinch of salt. And as we know, the macro is

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Speaker 9: still weak in China, the housing market is still in

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Speaker 9: the downturn, and consumers are still cautious.

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Speaker 3: So is just Singles Day losing significance.

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Speaker 9: Yeah, you can say that because the Single Day has

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Speaker 9: been running for almost a month and it came actually

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Speaker 9: right after the National Day holiday, which is in early October,

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Speaker 9: So you can say that those two events are just packed.

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Speaker 6: Up along with each other, along with each other.

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Speaker 9: But also in the meantime, we are having other shopping

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Speaker 9: events around the year as well. For example, sixty one

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Speaker 9: eight is another event that people are watching about. So

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Speaker 9: we can say that there are indeed a sharper fatigue

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Speaker 9: at this period of time because there are so many

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Speaker 9: discounts going on.

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Speaker 6: All over the year.

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Speaker 3: Henry Wren, we so appreciate it. Meanwhile, let's turn our

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Speaker 3: attention to Snap for a moment. Shares, as you'll see,

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Speaker 3: under pressure by more than four percent. Reports that Trump

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Speaker 3: is expected to try and holt a TikTok ban that

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Speaker 3: been reported by the Washington Post affecting some of the

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Speaker 3: social media companies today. This has been big technology. Make

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Speaker 3: a quick look at Tesla shares because the stock is

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Speaker 3: giving away a little bit of its past gains. Boy

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Speaker 3: has it run up on the forty percent since Trump's election.

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Speaker 3: The market cap in excess of one trillion dollars once again.

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Speaker 3: But it's not just Hasler that we're focusing on the market.

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Speaker 3: Love for Elon Musk has been focusing elsewhere as well.

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Speaker 3: Support is buying up speculative assets linked to the billionaire,

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Speaker 3: like dogecoin, like closed end fund Destiny Tech one hundred,

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Speaker 3: the many retail investors hoping to profit from Donald Trump's reelection.

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Speaker 3: Primbergstnitza Tagova is here with the inside track of what

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Speaker 3: has the retail community and others been buying up.

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Speaker 10: Yeah, we've really seen incredible euphorium among retail traders. Just

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Speaker 10: to zoom out and look at retail trader activity, we're

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Speaker 10: seeing a record to retail trailer activity and options, and

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Speaker 10: retail traders got to options when they want to chase

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Speaker 10: that upsite, when they want to chase the games we're

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Speaker 10: seeing in Tesla. There is for example, a leverage the TESTWATF,

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Speaker 10: which allows investors to get two times the games of Tesla.

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Speaker 11: It's been one of the most traded tools.

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Speaker 10: Investors are really looking to double their beds go and

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Speaker 10: of course, looking at Destiny one hundred, the games have

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Speaker 10: been incredible. We had more than two hundred and eighty

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Speaker 10: percent today. Obviously some of the games have faded, but

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Speaker 10: we had volatility so high that trading was halted, really

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Speaker 10: really high retail activity. And of course dogecoin, which in

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Speaker 10: the whole crypto space we're seeing really really strong activity.

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Speaker 11: Dosh cooin is actually one of the currencies that.

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Speaker 10: Was outperforming Bitcoin, so the speculity fever there is very

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Speaker 10: very strong.

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Speaker 3: Of course, go back to the Destiny one hundred. What

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Speaker 3: exactly is this closed end fund and why when it's

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Speaker 3: down twenty five percent? We know that it's a volatile

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Speaker 3: kind of product to be trading. Why do people have

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Speaker 3: concerns about it?

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Speaker 10: Well, obviously this has exposure to a lot of private

439
00:20:49,560 --> 00:20:55,880
Speaker 10: market companies that have our heart liquid vehicles and thirty.

440
00:20:55,720 --> 00:20:57,960
Speaker 3: Loads to SpaceX for example. That's why people are betting on.

441
00:20:58,000 --> 00:21:01,520
Speaker 11: It thirty eight percent of that front SpaceX. So when

442
00:21:01,560 --> 00:21:04,080
Speaker 11: we see voltility in SpaceX, obviously the.

443
00:21:04,240 --> 00:21:07,120
Speaker 10: Moves are so big on the upside and the downside.

444
00:21:07,160 --> 00:21:08,960
Speaker 10: If we go back a few months back, we remember

445
00:21:09,080 --> 00:21:11,320
Speaker 10: the stock was up more than thousand percent.

446
00:21:11,640 --> 00:21:13,959
Speaker 11: It was really heavy volatility.

447
00:21:14,800 --> 00:21:17,240
Speaker 10: And what we saw with Teswall in the much smaller

448
00:21:17,320 --> 00:21:19,440
Speaker 10: scale is obviously the company was struggling for quite some

449
00:21:19,560 --> 00:21:22,320
Speaker 10: time and now the games are much bigger. But of

450
00:21:22,400 --> 00:21:25,240
Speaker 10: course in a company like SpaceX that is private and

451
00:21:25,320 --> 00:21:28,800
Speaker 10: it's more liquid, we see a lot more volatility. But

452
00:21:29,000 --> 00:21:31,920
Speaker 10: the fund of course is relatively small. But we see

453
00:21:32,000 --> 00:21:35,520
Speaker 10: similar funds who have exposers to SpaceX. For example, there

454
00:21:35,600 --> 00:21:37,480
Speaker 10: is a Barren fund that was down on the year.

455
00:21:37,880 --> 00:21:40,760
Speaker 11: It's now up on the year just because of that

456
00:21:40,880 --> 00:21:44,280
Speaker 11: SpaceX game. So It's incredible how much it can give

457
00:21:44,720 --> 00:21:45,760
Speaker 11: in terms of performance.

458
00:21:46,760 --> 00:21:49,680
Speaker 3: Sunny has whether there's a leverage three x Tesla ETP

459
00:21:49,840 --> 00:21:52,040
Speaker 3: that's currently traded over in London, just down on the day,

460
00:21:52,119 --> 00:21:55,160
Speaker 3: but well, they will get you a long term chart

461
00:21:55,200 --> 00:21:57,280
Speaker 3: on some of these things, but they have certainly been

462
00:21:57,359 --> 00:22:01,399
Speaker 3: a winning formula since the election. Denisa over great reporting.

463
00:22:01,480 --> 00:22:11,439
Speaker 3: We appreciated. Welcome back to me med Technology. I'm Caroline

464
00:22:11,440 --> 00:22:12,800
Speaker 3: Heide in New York. Let's get a quick check on

465
00:22:12,840 --> 00:22:15,000
Speaker 3: these markets that are perhaps just taking a bit of

466
00:22:15,040 --> 00:22:18,320
Speaker 3: a breather after a phenomenal run higher post the election

467
00:22:18,480 --> 00:22:20,760
Speaker 3: results of Wednesday last week. We're just down by about

468
00:22:20,800 --> 00:22:23,040
Speaker 3: two tens percent on the nastat one hundred. Some of

469
00:22:23,080 --> 00:22:24,800
Speaker 3: the key names that drive us lower from the points

470
00:22:24,800 --> 00:22:26,639
Speaker 3: of perspective is Tesla that we've just been shining a

471
00:22:26,680 --> 00:22:28,840
Speaker 3: light on after a forty percent run higher since the election.

472
00:22:29,160 --> 00:22:31,480
Speaker 3: Bitcoin off of those highs. At one point it was

473
00:22:31,600 --> 00:22:34,120
Speaker 3: ever so close to ninety thousand dollars. We now pull

474
00:22:34,240 --> 00:22:36,800
Speaker 3: back a little bit as the technical indicators show that

475
00:22:36,880 --> 00:22:38,760
Speaker 3: we are overbought. We'll dig into it in a moment,

476
00:22:38,800 --> 00:22:40,280
Speaker 3: but let's get on to some of the individual names,

477
00:22:40,320 --> 00:22:43,000
Speaker 3: because there is some key news out Honeywell, the best

478
00:22:43,040 --> 00:22:45,159
Speaker 3: points provider on the upside when you're looking at the

479
00:22:45,200 --> 00:22:47,880
Speaker 3: nastat one hundred more than three percent. Elliot Investment Management

480
00:22:47,880 --> 00:22:51,439
Speaker 3: and Activist Investors has built a five billion plus position

481
00:22:51,520 --> 00:22:54,440
Speaker 3: in Honeywell, pushing for a breakup of the industrial giant

482
00:22:54,480 --> 00:22:57,280
Speaker 3: that in our space is very focused on aerospace and automation.

483
00:22:57,720 --> 00:23:00,200
Speaker 3: It is indeed a tech name. Nvidia up by two

484
00:23:00,200 --> 00:23:03,359
Speaker 3: point two percent. We're seeing some chip strength above and

485
00:23:03,520 --> 00:23:05,880
Speaker 3: beyond really for Nvidio, but not so for the rest

486
00:23:05,920 --> 00:23:07,480
Speaker 3: of the market. Will dig into why chips have been

487
00:23:07,520 --> 00:23:09,640
Speaker 3: a little bit weaker In a moment, Soft Bank off

488
00:23:09,840 --> 00:23:12,120
Speaker 3: more up by more than a percentage point. We shine

489
00:23:12,160 --> 00:23:14,800
Speaker 3: a light on the ADRs. This is it's reported its

490
00:23:14,800 --> 00:23:18,480
Speaker 3: biggest quarterly profit in two years. Successful Indian listings are coming,

491
00:23:18,680 --> 00:23:21,200
Speaker 3: but then really trying to get those coffers back so

492
00:23:21,320 --> 00:23:23,679
Speaker 3: Massa can make his next beep, which is all around

493
00:23:23,840 --> 00:23:26,520
Speaker 3: ai Remember they took a half billion dollar position in

494
00:23:26,640 --> 00:23:29,960
Speaker 3: open Aiye's latest fundraising round. We want to talk about

495
00:23:29,960 --> 00:23:31,760
Speaker 3: Asia a little bit more as well, and a key

496
00:23:31,960 --> 00:23:36,639
Speaker 3: Southeast Asian tech company reported earnings grab shares really rising

497
00:23:36,680 --> 00:23:39,000
Speaker 3: today after the right hailing and Delivery leader posted third

498
00:23:39,080 --> 00:23:42,359
Speaker 3: quarter earnings that exceeded expectations. We said its earnings forecast

499
00:23:42,400 --> 00:23:44,960
Speaker 3: for the year. Peter Ue joins us. He's grab CFO

500
00:23:45,160 --> 00:23:47,359
Speaker 3: Peter Ooh, it's been a long day for you. We

501
00:23:47,480 --> 00:23:50,080
Speaker 3: appreciate you coming on the show and just talk to

502
00:23:50,160 --> 00:23:52,280
Speaker 3: us a little bit about what's driving the growth. We

503
00:23:52,359 --> 00:23:55,719
Speaker 3: saw what seventeen percent increase in revenue and your forecasts

504
00:23:55,760 --> 00:23:56,960
Speaker 3: to where everyone's exuberant.

505
00:23:58,240 --> 00:24:02,480
Speaker 2: Sure, we saw very strong result in Q three, Caroline,

506
00:24:02,560 --> 00:24:05,240
Speaker 2: and what we're seeing his strong momentum in our business.

507
00:24:05,760 --> 00:24:09,399
Speaker 2: We have more users on our platform ever before, and

508
00:24:09,560 --> 00:24:12,600
Speaker 2: we're seeing growth acceleration on our on demand business with

509
00:24:12,760 --> 00:24:15,879
Speaker 2: some mobility and deliveries business, and a lot of this

510
00:24:16,040 --> 00:24:18,280
Speaker 2: is really driven by all the new product sets that

511
00:24:18,320 --> 00:24:21,159
Speaker 2: we've been rolling out over the last three quarters and

512
00:24:21,280 --> 00:24:24,399
Speaker 2: those are really coming into action now. And also our

513
00:24:24,480 --> 00:24:29,280
Speaker 2: financial services business continues to be our fastest growing segment today,

514
00:24:29,720 --> 00:24:32,520
Speaker 2: So we're firing in all cylinders. Strong demand is we

515
00:24:32,760 --> 00:24:36,040
Speaker 2: exit the year to one of our big most busiest quarter,

516
00:24:36,080 --> 00:24:37,480
Speaker 2: which is the holiday season that.

517
00:24:37,520 --> 00:24:38,560
Speaker 6: We have in front of us.

518
00:24:39,280 --> 00:24:41,520
Speaker 3: How much are you still having to focus in on

519
00:24:41,720 --> 00:24:45,160
Speaker 3: the cost cutting side, The focus on net profit over

520
00:24:45,160 --> 00:24:47,720
Speaker 3: and above perhaps expanding the market share as it was

521
00:24:48,000 --> 00:24:49,919
Speaker 3: before revenue growth at all costs.

522
00:24:51,240 --> 00:24:53,400
Speaker 2: Sure. Yeah. So one of the things about Q three,

523
00:24:53,560 --> 00:24:56,920
Speaker 2: which is was a very strong set of results, it

524
00:24:57,000 --> 00:24:58,440
Speaker 2: was also not on the top of also on the

525
00:24:58,480 --> 00:24:59,040
Speaker 2: bottom line.

526
00:24:59,080 --> 00:24:59,760
Speaker 12: So what do we see.

527
00:25:00,000 --> 00:25:04,520
Speaker 2: We saw high adjusted EBIDAB. We posted the highest ninety

528
00:25:04,560 --> 00:25:09,040
Speaker 2: million dollar quarter adjusted EBIDA, which is the eleventh consecutive

529
00:25:09,119 --> 00:25:12,879
Speaker 2: quarter EBIDA improvement. We also posted net profit for the

530
00:25:12,960 --> 00:25:18,000
Speaker 2: business and also cash flow. Now we're balancing both growth

531
00:25:18,280 --> 00:25:21,960
Speaker 2: and profitability, and what we're doing is making sure also

532
00:25:22,040 --> 00:25:24,119
Speaker 2: that the top of the funnel, the demand is strong.

533
00:25:24,400 --> 00:25:27,280
Speaker 2: We're continuing to capture those demands, but at the same

534
00:25:27,320 --> 00:25:30,920
Speaker 2: time also balancing costs and also making sure that operating

535
00:25:31,119 --> 00:25:34,560
Speaker 2: leverage as a business continues to continue to grow and

536
00:25:34,680 --> 00:25:37,720
Speaker 2: continue to sustain. So we're balancing both and you've seen

537
00:25:37,760 --> 00:25:39,600
Speaker 2: them in the third quarter of our results where you're

538
00:25:39,600 --> 00:25:41,800
Speaker 2: seeing the growth in the top and also the profitability

539
00:25:41,840 --> 00:25:42,359
Speaker 2: on the bottom.

540
00:25:42,840 --> 00:25:46,600
Speaker 3: You're balancing investors' desires as well for all some returns

541
00:25:46,680 --> 00:25:50,000
Speaker 3: when it comes to buybacks. For example, JP Morgan, analyst saying, look,

542
00:25:50,040 --> 00:25:53,240
Speaker 3: with these healthy free cash flows, maybe you could raise

543
00:25:53,280 --> 00:25:56,640
Speaker 3: prospects for an increase in buyback programs. Would you do that? Beta.

544
00:25:58,320 --> 00:26:01,040
Speaker 2: We have a buyback program in place today and it's

545
00:26:01,200 --> 00:26:04,040
Speaker 2: a five hundred million dollar buyback program. It's we initiated

546
00:26:04,119 --> 00:26:07,119
Speaker 2: in the first quarter of this year. We're about forty

547
00:26:07,119 --> 00:26:09,080
Speaker 2: percent of the way through there, so we still have

548
00:26:09,200 --> 00:26:12,400
Speaker 2: some ways to go, and we're continuing to make good

549
00:26:12,480 --> 00:26:15,879
Speaker 2: momentum in the buyback program. And what I would say is,

550
00:26:16,240 --> 00:26:19,920
Speaker 2: think about our capital allocation framework is three things. One

551
00:26:20,119 --> 00:26:24,520
Speaker 2: is making sure that we're investing in the organic growth

552
00:26:24,560 --> 00:26:27,560
Speaker 2: of our business, and we're seeing that plan coming into

553
00:26:27,640 --> 00:26:30,760
Speaker 2: play with all the new products that we've been investing in.

554
00:26:30,960 --> 00:26:33,520
Speaker 2: Organic growth is our highest yield and we're going to

555
00:26:33,560 --> 00:26:37,040
Speaker 2: continue to invest when it comes to more M and

556
00:26:37,119 --> 00:26:40,520
Speaker 2: A opportunities in organic growth, the bar is extremely high

557
00:26:40,640 --> 00:26:43,760
Speaker 2: for us now. When we do have excess liquidity, we

558
00:26:43,920 --> 00:26:46,280
Speaker 2: do want to return them to our shareholders, and you've

559
00:26:46,320 --> 00:26:49,240
Speaker 2: seen our first step in doing that earlier this year

560
00:26:49,359 --> 00:26:51,520
Speaker 2: by this five hundred million dollar buyback program.

561
00:26:51,960 --> 00:26:54,399
Speaker 3: Okay, JP, Morgan ANDAs might have to hold on a

562
00:26:54,440 --> 00:26:57,080
Speaker 3: little bit longer for any articulation of arrays in the

563
00:26:57,160 --> 00:27:00,520
Speaker 3: next one, But what about the areas of growth about it,

564
00:27:00,600 --> 00:27:03,680
Speaker 3: whether it's the financial products, but also advertising as well

565
00:27:03,720 --> 00:27:05,480
Speaker 3: coming to your platform. That's something we've seen with Uber,

566
00:27:05,520 --> 00:27:07,120
Speaker 3: which is a big holder of your stock and back

567
00:27:07,200 --> 00:27:09,720
Speaker 3: of the company. How are they going How much will

568
00:27:09,720 --> 00:27:11,560
Speaker 3: we see that contribute to revenue going forward?

569
00:27:12,640 --> 00:27:16,200
Speaker 2: Sure? Yeah, Advertising actually is a love component about business

570
00:27:16,200 --> 00:27:17,720
Speaker 2: which is growing very.

571
00:27:17,640 --> 00:27:18,480
Speaker 6: Fast at the moment.

572
00:27:18,600 --> 00:27:21,280
Speaker 2: Actually we're at a clip now where it's doing two

573
00:27:21,400 --> 00:27:25,680
Speaker 2: hundred million dollars from an annualized basis. Now, if you

574
00:27:25,720 --> 00:27:29,600
Speaker 2: look at the penetration of advertising, we're continuing to grow

575
00:27:29,760 --> 00:27:33,120
Speaker 2: that as a revenue as a percentage of our deliveries GMB.

576
00:27:33,720 --> 00:27:36,560
Speaker 2: We finish the quarter at one point six percent and

577
00:27:36,680 --> 00:27:40,159
Speaker 2: we continue to grow that and we're also up on

578
00:27:40,200 --> 00:27:42,119
Speaker 2: a euro of a year basis. And one of the

579
00:27:42,200 --> 00:27:44,600
Speaker 2: things that we're seeing also it's helping our merchants. We

580
00:27:44,680 --> 00:27:47,359
Speaker 2: are bringing in more merchants onto our platform also for

581
00:27:47,480 --> 00:27:51,119
Speaker 2: their advertising services. It's a win win situation. Also we

582
00:27:51,280 --> 00:27:54,119
Speaker 2: bring them traffic back to them and we see actually

583
00:27:54,200 --> 00:27:57,560
Speaker 2: the advertising to be still a lot of outside in

584
00:27:57,640 --> 00:27:59,240
Speaker 2: front of us. So we're going to continue to double

585
00:27:59,320 --> 00:28:02,520
Speaker 2: down an advertise as well as also as we continue

586
00:28:02,560 --> 00:28:06,560
Speaker 2: to also look to expanding a growth street delivery also

587
00:28:06,960 --> 00:28:10,639
Speaker 2: that will also bring another layer of advertising business for us.

588
00:28:11,560 --> 00:28:14,680
Speaker 3: With overall, it feels as though, as you said, you're

589
00:28:14,680 --> 00:28:17,240
Speaker 3: firing on all cylinders. The share price up a lot

590
00:28:17,359 --> 00:28:18,639
Speaker 3: on the day, but I just want to take a

591
00:28:18,720 --> 00:28:20,639
Speaker 3: longer term perspective here, because if you do put in

592
00:28:20,680 --> 00:28:22,520
Speaker 3: a five year chart of your stock, it is down

593
00:28:22,600 --> 00:28:25,560
Speaker 3: significantly from previous highs, and many have been trying to

594
00:28:25,840 --> 00:28:29,120
Speaker 3: understand also just the extent of the growth in the market,

595
00:28:29,200 --> 00:28:33,280
Speaker 3: particularly when you've got some macro headwinds for Southeast Asian consumers.

596
00:28:33,640 --> 00:28:35,560
Speaker 3: Can you just tell us about where next for the

597
00:28:35,680 --> 00:28:37,919
Speaker 3: next five years to get perhaps the share price back

598
00:28:37,960 --> 00:28:38,920
Speaker 3: at those all time highs.

599
00:28:40,360 --> 00:28:42,880
Speaker 2: Sure, I mean, if you step back on Southeast Asia,

600
00:28:43,640 --> 00:28:47,360
Speaker 2: six hundred and sixty million people, fifty percent of those

601
00:28:47,440 --> 00:28:50,640
Speaker 2: population are under the age of thirty. It's a smartphone

602
00:28:50,680 --> 00:28:55,640
Speaker 2: and first Nations. We operate in eight country, seven hundred cities,

603
00:28:55,880 --> 00:28:58,480
Speaker 2: which is pretty much the whole of Southeast Asia today,

604
00:28:59,160 --> 00:29:02,760
Speaker 2: and we still believe that we're still underpenetrated where GRAP

605
00:29:02,880 --> 00:29:06,040
Speaker 2: operates today. So if you look at my mobility business today,

606
00:29:06,040 --> 00:29:08,719
Speaker 2: you're looking at high single digit penetration. If you look

607
00:29:08,720 --> 00:29:10,960
Speaker 2: at deliveries business in the mid teen so there's still

608
00:29:11,000 --> 00:29:12,800
Speaker 2: a long way to go. And if you look at

609
00:29:12,840 --> 00:29:16,920
Speaker 2: the financial services side of our house, also, sixty percent

610
00:29:17,080 --> 00:29:20,720
Speaker 2: of Southeast Asians are underbanked or underserved, so there's a

611
00:29:20,840 --> 00:29:23,960
Speaker 2: big tam opportunity for us. And what we're seeing is

612
00:29:24,040 --> 00:29:27,000
Speaker 2: from a macro perspective and from a demand it's not

613
00:29:27,160 --> 00:29:32,320
Speaker 2: slowing down if anything. Actually it's going through a strong momentum.

614
00:29:32,800 --> 00:29:35,320
Speaker 2: And one of the components that we're seeing actually is

615
00:29:35,360 --> 00:29:37,880
Speaker 2: the level of tourism in Southeast Asia. Tourism is a

616
00:29:38,000 --> 00:29:43,360
Speaker 2: very critical component, very influenced sector of Southeast Asian economy,

617
00:29:43,640 --> 00:29:47,640
Speaker 2: and we're seeing continual increase of tourism into all the

618
00:29:47,720 --> 00:29:50,680
Speaker 2: different countries in Southeast Asia, especially coming out of the

619
00:29:50,760 --> 00:29:53,480
Speaker 2: COVID days to where we are today, and we're capturing

620
00:29:53,520 --> 00:29:56,200
Speaker 2: those markets. But one of the biggest beneficiary actually of

621
00:29:56,320 --> 00:29:58,920
Speaker 2: tourism in the right handling as well as the food

622
00:29:58,960 --> 00:30:02,000
Speaker 2: delivery site. So if you look at from a longer

623
00:30:02,120 --> 00:30:05,160
Speaker 2: term perspective, and I'll just side a third party report

624
00:30:05,240 --> 00:30:08,040
Speaker 2: that came out last week that over the next five years,

625
00:30:08,520 --> 00:30:12,040
Speaker 2: the digital economy of Southeast Asia, where their mobility deliveries

626
00:30:12,280 --> 00:30:15,720
Speaker 2: will be growing at double digit kgar growth. So we're

627
00:30:15,840 --> 00:30:19,040
Speaker 2: very bullish on Southeast Asia and we're going to continue

628
00:30:19,080 --> 00:30:21,520
Speaker 2: to double down on Southeast Asia, and we're going to

629
00:30:21,640 --> 00:30:25,000
Speaker 2: by doing actually more products and services for our customers.

630
00:30:25,400 --> 00:30:28,680
Speaker 3: He recently brought that listeners to our CFO briefing recently

631
00:30:28,920 --> 00:30:31,080
Speaker 3: and staying up for us and to hop us midnight

632
00:30:31,120 --> 00:30:33,880
Speaker 3: in your time. We appreciate it. Peace ere we grab

633
00:30:34,000 --> 00:30:37,000
Speaker 3: CFO now. In other earnings in Finia and Germany's biggest

634
00:30:37,040 --> 00:30:39,760
Speaker 3: chip maker, says it sees a turnaround by the end

635
00:30:39,800 --> 00:30:42,280
Speaker 3: of twenty twenty five fiscal year. The company forecasts they

636
00:30:42,360 --> 00:30:44,640
Speaker 3: drop in sales in the first quarter, but then it

637
00:30:44,720 --> 00:30:47,360
Speaker 3: expects a return to double digit growth by the fourth quarter.

638
00:30:47,640 --> 00:30:51,920
Speaker 3: Gloomberg spoke with Infinian CFO a little bit earlier. Take listen, we.

639
00:30:52,040 --> 00:30:56,400
Speaker 12: See a much more pronounced seasonality in terms of inventory

640
00:30:56,520 --> 00:31:01,120
Speaker 12: management by major customers, so they are many their inventories

641
00:31:01,480 --> 00:31:05,560
Speaker 12: very very strictly towards their kalinda and fiscal year end.

642
00:31:06,200 --> 00:31:08,440
Speaker 3: Fininche has pushed high. Let's just take a look at

643
00:31:08,640 --> 00:31:11,280
Speaker 3: the rest of the market in megxemniy graffeos with us

644
00:31:11,320 --> 00:31:14,440
Speaker 3: and is it about earnings? Is it still about the election.

645
00:31:14,640 --> 00:31:15,520
Speaker 3: What are you keeping around?

646
00:31:16,080 --> 00:31:17,960
Speaker 13: It looks like the market is just taking a breather

647
00:31:18,160 --> 00:31:20,320
Speaker 13: because we had the biggest five day run up in

648
00:31:20,360 --> 00:31:24,320
Speaker 13: the S and P five hundred all year that concluded yesterday,

649
00:31:24,400 --> 00:31:26,640
Speaker 13: So it seems like people had really been bidding up

650
00:31:26,720 --> 00:31:31,440
Speaker 13: the Trump trade. Kinds of stocks, Internationals were lower, and

651
00:31:31,480 --> 00:31:34,640
Speaker 13: now we're seeing a little bit more strength there. Bitcoin

652
00:31:34,800 --> 00:31:36,360
Speaker 13: was one of the big Trump trades that we're also

653
00:31:36,440 --> 00:31:40,040
Speaker 13: seeing take a breather. So I would say overall, long

654
00:31:40,200 --> 00:31:43,800
Speaker 13: term investors are still pretty bullish that Trump's policies will

655
00:31:43,880 --> 00:31:50,160
Speaker 13: support sectors like financials, tech names, bitcoin, but today people

656
00:31:50,320 --> 00:31:52,440
Speaker 13: maybe taking some profits. There was a note from City

657
00:31:52,800 --> 00:31:55,360
Speaker 13: that said that the post election advance in US stocks

658
00:31:55,560 --> 00:31:59,240
Speaker 13: could run out of steam as investors start to take profits.

659
00:31:59,320 --> 00:32:04,280
Speaker 13: Investors sent is favorable, but valuations overall looking stretched. And

660
00:32:04,360 --> 00:32:07,680
Speaker 13: when I look in like some names in particular, the

661
00:32:07,800 --> 00:32:11,800
Speaker 13: semiconductors are doing pretty poorly today. And what's really interesting, Caroline,

662
00:32:11,960 --> 00:32:14,000
Speaker 13: is that in Vidia's higher, and Video is up over

663
00:32:14,080 --> 00:32:18,360
Speaker 13: two percent, but the SAC Semiconductor index is lower. There's

664
00:32:18,400 --> 00:32:21,800
Speaker 13: only four names in that index today that are higher,

665
00:32:21,880 --> 00:32:23,680
Speaker 13: and you can really see that the weakness in the

666
00:32:23,720 --> 00:32:27,360
Speaker 13: semi names is pretty broad based in video's games can't

667
00:32:27,400 --> 00:32:30,480
Speaker 13: even carry that index into positive territory today.

668
00:32:30,640 --> 00:32:32,480
Speaker 3: Micron one of the worst performers, and there're mad some

669
00:32:32,640 --> 00:32:35,479
Speaker 3: notes out of some analysts about weakness and centain areas

670
00:32:35,520 --> 00:32:40,760
Speaker 3: of particularly focused on chips, and overall we're seeing the

671
00:32:40,800 --> 00:32:42,960
Speaker 3: weakness in certain chips and also maybe in some of

672
00:32:42,960 --> 00:32:45,040
Speaker 3: the social media companies on the back of the Washington

673
00:32:45,400 --> 00:32:47,880
Speaker 3: Post report that maybe we do see a TikTok ban

674
00:32:48,040 --> 00:32:50,880
Speaker 3: overturned by Trump, But then we're next in terms of

675
00:32:51,040 --> 00:32:52,680
Speaker 3: the next set of assets that you keep an eye on,

676
00:32:52,800 --> 00:32:55,000
Speaker 3: and indeed the earnings the fundamentals that we're likely to

677
00:32:55,000 --> 00:32:55,960
Speaker 3: still get from businesses.

678
00:32:56,160 --> 00:32:58,520
Speaker 13: So I'm watching ten Cent because we have those earnings

679
00:32:58,560 --> 00:33:01,880
Speaker 13: coming up pretty soon. This will be one that investors

680
00:33:01,920 --> 00:33:04,560
Speaker 13: are watching because a lot of people are focused on

681
00:33:05,160 --> 00:33:08,320
Speaker 13: China's macro economic picture and how companies in China are

682
00:33:08,360 --> 00:33:12,120
Speaker 13: going to fare with more stimulus, Is it working, is

683
00:33:12,160 --> 00:33:16,120
Speaker 13: it trickling down into businesses. Tencent is actually outperforming the

684
00:33:16,440 --> 00:33:18,960
Speaker 13: US ad rs, are outperforming the S and P five

685
00:33:19,120 --> 00:33:22,960
Speaker 13: hundred this year. They're up about thirty five percent, and

686
00:33:23,040 --> 00:33:25,720
Speaker 13: analysts are actually saying that they expect Tencent to sustain

687
00:33:25,920 --> 00:33:28,480
Speaker 13: or even accelerate the pace of revenue growth. And because

688
00:33:28,760 --> 00:33:30,840
Speaker 13: they're not an e commerce company, they might not be

689
00:33:31,120 --> 00:33:34,240
Speaker 13: as exposed to any weakness in China like some of

690
00:33:34,320 --> 00:33:38,760
Speaker 13: their big megacap Chinese competitors are. But yeah, I guess

691
00:33:38,760 --> 00:33:40,960
Speaker 13: I'm going to be watching that name watching.

692
00:33:40,720 --> 00:33:42,200
Speaker 3: Disney for a little bit later in the week as well,

693
00:33:42,280 --> 00:33:44,040
Speaker 3: Amanie Grafair. Always great to have on the show. We

694
00:33:44,040 --> 00:33:46,120
Speaker 3: appreciate it. May while coming up a big announcement from

695
00:33:46,120 --> 00:33:48,720
Speaker 3: a major player in the field of general to AI right,

696
00:33:48,800 --> 00:33:51,200
Speaker 3: a CEO co founder may have been joins us next

697
00:33:51,280 --> 00:34:08,279
Speaker 3: on a fundraising announcement. This is blue meg technology. AI

698
00:34:08,400 --> 00:34:11,840
Speaker 3: startup Writer already helps clans like Loreal, like Spotify, like

699
00:34:11,960 --> 00:34:15,800
Speaker 3: Uber produce corporate content and as major growth plans, and

700
00:34:15,880 --> 00:34:19,200
Speaker 3: today the generative AI platform is announcing to spearhead that

701
00:34:19,320 --> 00:34:21,920
Speaker 3: growth two hundred million dollars in a series C funding

702
00:34:22,000 --> 00:34:24,520
Speaker 3: round here with more. Writer, CEO and co founder may

703
00:34:24,600 --> 00:34:27,239
Speaker 3: have been congratulations, it's a big valuation as well of

704
00:34:27,320 --> 00:34:29,400
Speaker 3: one point nine billion dollars. What are you going to

705
00:34:29,480 --> 00:34:30,759
Speaker 3: use that two hundred million dollars to do?

706
00:34:32,040 --> 00:34:34,560
Speaker 14: Oh, thank you so much, Caroline. It's wonderful to be here,

707
00:34:35,200 --> 00:34:37,719
Speaker 14: We're going to use the money for the next buildout

708
00:34:37,800 --> 00:34:41,200
Speaker 14: of the next phase of writer autonomous AI systems that

709
00:34:41,280 --> 00:34:46,040
Speaker 14: can plan and execute complex enterprise workflows across systems, across teams.

710
00:34:46,680 --> 00:34:50,320
Speaker 14: It's that across systems part that has gotten Adobe and

711
00:34:50,400 --> 00:34:53,640
Speaker 14: Salesforce and Workday really excited. We have a shared vision

712
00:34:53,880 --> 00:34:57,040
Speaker 14: for how systems can can talk to each other to

713
00:34:57,120 --> 00:35:00,480
Speaker 14: make generative AI incredibly, incredibly valuable in the enterprise.

714
00:35:01,440 --> 00:35:04,120
Speaker 3: Salesforce is actually one of your investors, and Salesforce is

715
00:35:04,160 --> 00:35:07,680
Speaker 3: an area that is also focusing very much on agentic AI,

716
00:35:07,840 --> 00:35:11,160
Speaker 3: building agents to make me and you and everyone far

717
00:35:11,239 --> 00:35:14,760
Speaker 3: more productive when in the workplace. How are you different?

718
00:35:15,040 --> 00:35:15,920
Speaker 3: How are you additive?

719
00:35:17,040 --> 00:35:17,239
Speaker 6: Yeah?

720
00:35:17,800 --> 00:35:22,080
Speaker 14: So four years ago, right, we started working on pioneering

721
00:35:22,160 --> 00:35:25,800
Speaker 14: the enterprise generative AI category, and Salesforce has been a

722
00:35:25,880 --> 00:35:28,680
Speaker 14: customer for a very long time, and what we have

723
00:35:28,840 --> 00:35:31,279
Speaker 14: heard from them and others over those four years is

724
00:35:31,480 --> 00:35:35,439
Speaker 14: enterprises want complete end to end solutions, right, and that's

725
00:35:35,480 --> 00:35:39,880
Speaker 14: our full stack PLATH. It's LMS with retrieval, with observability,

726
00:35:40,239 --> 00:35:43,560
Speaker 14: with guardrails, all in one package, helping them get to

727
00:35:43,680 --> 00:35:46,839
Speaker 14: value faster. It's a little different than what Salesforce has

728
00:35:46,840 --> 00:35:50,480
Speaker 14: built into their platform, which is very complementary, complimentary.

729
00:35:50,760 --> 00:35:54,520
Speaker 3: Where is therefore the competition Is it an open AI

730
00:35:54,600 --> 00:35:56,640
Speaker 3: which has been doubling down on its enterprise focus.

731
00:35:58,000 --> 00:36:02,280
Speaker 14: So right now enterprise gener of AI is everything everywhere,

732
00:36:02,440 --> 00:36:06,120
Speaker 14: all at once. It is very confusing for the enterprise buyer.

733
00:36:06,520 --> 00:36:10,680
Speaker 14: But this is why architecture matters, and our architecture is winning.

734
00:36:11,400 --> 00:36:15,360
Speaker 14: Investors in this round have underwritten, you know, extraordinary growth

735
00:36:15,440 --> 00:36:18,160
Speaker 14: in the enterprise because we're helping folks get these mission

736
00:36:18,239 --> 00:36:22,279
Speaker 14: critical use cases to production. Folks like Mars, like Uber,

737
00:36:22,480 --> 00:36:27,040
Speaker 14: like Qualcom, like Kenview, very powerful use cases that are

738
00:36:27,160 --> 00:36:28,320
Speaker 14: accelerating their businesses.

739
00:36:28,880 --> 00:36:30,920
Speaker 3: So for those that are frustrated at the moment when

740
00:36:30,920 --> 00:36:32,640
Speaker 3: they come on they say, I don't see the return

741
00:36:32,719 --> 00:36:34,920
Speaker 3: on investment in AI, I want to know where it's

742
00:36:35,000 --> 00:36:37,600
Speaker 3: making us all that much more productive. Is it all

743
00:36:37,640 --> 00:36:41,239
Speaker 3: about content generation? Is it all about marketing? Where else

744
00:36:41,280 --> 00:36:41,880
Speaker 3: do you expand to?

745
00:36:43,120 --> 00:36:43,319
Speaker 6: Yeah?

746
00:36:43,440 --> 00:36:46,560
Speaker 14: I mean we have helped companies cut down legal compliance

747
00:36:46,680 --> 00:36:50,200
Speaker 14: reviews by more than seventy five percent. We've helped folks

748
00:36:50,320 --> 00:36:53,760
Speaker 14: increase revenue on their retail channels more than twenty percent,

749
00:36:54,640 --> 00:36:58,080
Speaker 14: from dog food to face creams. We've helped our customers

750
00:36:58,160 --> 00:37:01,640
Speaker 14: get their products to market, So it goes way beyond

751
00:37:01,800 --> 00:37:06,560
Speaker 14: the marketing function. Any function within your company that can

752
00:37:06,880 --> 00:37:12,400
Speaker 14: use a knowledge assistant, a knowledge retrieval application is benefiting

753
00:37:12,520 --> 00:37:13,000
Speaker 14: from writer.

754
00:37:14,040 --> 00:37:17,759
Speaker 3: Therefore, this money does it get really attributed? It into

755
00:37:18,000 --> 00:37:20,240
Speaker 3: talent at the moment? What is your blocker to scale

756
00:37:20,239 --> 00:37:21,600
Speaker 3: at the pace that you want to scale at?

757
00:37:21,640 --> 00:37:21,759
Speaker 12: May?

758
00:37:22,840 --> 00:37:26,880
Speaker 14: Yeah, well, we're building our next generation of LLMS models

759
00:37:26,920 --> 00:37:30,000
Speaker 14: that are trained on data that is vision, text and

760
00:37:30,239 --> 00:37:35,759
Speaker 14: action together. So our vision is enterprises that are more intelligent,

761
00:37:36,960 --> 00:37:41,279
Speaker 14: more creative, faster as a result of autonomous AI that

762
00:37:41,400 --> 00:37:43,240
Speaker 14: can architect these complex workflows.

763
00:37:44,200 --> 00:37:47,719
Speaker 3: So to that point, where do you attribute this money?

764
00:37:48,120 --> 00:37:50,840
Speaker 3: Like you're talking about how the real focus is going

765
00:37:50,920 --> 00:37:53,120
Speaker 3: to be on the product and invasion the lars language

766
00:37:53,120 --> 00:37:55,120
Speaker 3: models that are the eye all of this. But is

767
00:37:55,160 --> 00:37:59,399
Speaker 3: it therefore getting more salespeople out there? Is it about

768
00:37:59,440 --> 00:38:01,440
Speaker 3: actually underlying engineering talent that.

769
00:38:01,440 --> 00:38:04,560
Speaker 14: You need to be fun It is both engineering and

770
00:38:04,719 --> 00:38:07,240
Speaker 14: go to market. On the engineering side, we are hiring

771
00:38:07,400 --> 00:38:11,000
Speaker 14: AI engineers, we are hiring full stack engineers. On the

772
00:38:11,040 --> 00:38:13,879
Speaker 14: go to market side, sales and CS people, we take

773
00:38:14,000 --> 00:38:17,880
Speaker 14: a really differentiated approach to how we partner with customers.

774
00:38:17,920 --> 00:38:21,520
Speaker 14: It's incredibly intimate and for us, the series C is

775
00:38:21,640 --> 00:38:24,440
Speaker 14: really doubling down on our engineering talent and our go

776
00:38:24,520 --> 00:38:25,120
Speaker 14: to market talent.

777
00:38:25,719 --> 00:38:28,479
Speaker 3: May Heabib great to catch up with your congratulations, CEO

778
00:38:28,520 --> 00:38:39,279
Speaker 3: and co founder of writer Time Now for talking tech.

779
00:38:39,360 --> 00:38:42,719
Speaker 3: First up, Netflix says seventeen million viewers are watching it

780
00:38:42,840 --> 00:38:46,160
Speaker 3: shows with advertising every single month, nearly double the total

781
00:38:46,239 --> 00:38:49,600
Speaker 3: from May. Netflix plans to make advertising a major revenue

782
00:38:49,640 --> 00:38:52,719
Speaker 3: source to complement subscriptions, though its ad business is still

783
00:38:52,800 --> 00:38:54,520
Speaker 3: pretty small compared to its peers.

784
00:38:55,000 --> 00:38:55,320
Speaker 5: Plus.

785
00:38:55,560 --> 00:38:59,040
Speaker 3: Argentine fintech company Walla has raised three hundred million dollars

786
00:38:59,080 --> 00:39:02,040
Speaker 3: from investors. Evaluation of two pint some five billion dollars

787
00:39:02,239 --> 00:39:03,680
Speaker 3: is the latest funding hale of for one of the

788
00:39:03,920 --> 00:39:06,080
Speaker 3: most valuable startups in that in America, backed by the

789
00:39:06,200 --> 00:39:09,600
Speaker 3: likes of Soros Fund Management, Gold and Saxon Tencent. Meanwhile,

790
00:39:09,719 --> 00:39:13,000
Speaker 3: sticking with VC, Donald Trump Junior won't be joining his

791
00:39:13,080 --> 00:39:16,840
Speaker 3: father's administration, instead joining seventeen eighty nine Capital. It's a

792
00:39:16,920 --> 00:39:19,960
Speaker 3: VC firm that invests in conservative leaning companies that call

793
00:39:20,040 --> 00:39:22,479
Speaker 3: into sources when. The firm was founded by Trump donor

794
00:39:22,520 --> 00:39:26,360
Speaker 3: Ome and Mallick and has essued ESG principles to instead

795
00:39:26,440 --> 00:39:31,680
Speaker 3: follow its own acronym EIG Entrepreneurship, Innovation and Growth. Now

796
00:39:31,880 --> 00:39:34,720
Speaker 3: let's just stick with the Trump impact on certain areas.

797
00:39:34,760 --> 00:39:37,080
Speaker 3: And indeed you're on MUSK because Threads a Blue Sky,

798
00:39:37,680 --> 00:39:40,040
Speaker 3: the rival social networks that look a lot likely on

799
00:39:40,160 --> 00:39:42,879
Speaker 3: musks X have seen an influx of new users since

800
00:39:42,920 --> 00:39:46,000
Speaker 3: election night in the US. That's says People's c alternatives

801
00:39:46,040 --> 00:39:48,759
Speaker 3: and must small right leaning platform. Let's break it all

802
00:39:48,800 --> 00:39:52,160
Speaker 3: down with Bloomberg's Kurt Wagner and Kurt anecdotally, I've seen

803
00:39:52,200 --> 00:39:55,200
Speaker 3: it on Threads, people saying I'm joining post the election,

804
00:39:55,560 --> 00:39:57,880
Speaker 3: But is it happening on mass Is their data to

805
00:39:57,960 --> 00:39:58,480
Speaker 3: prove this out?

806
00:40:00,120 --> 00:40:02,360
Speaker 15: Yeah, I'm seeing it anecdotally as well. My feed on

807
00:40:02,480 --> 00:40:04,640
Speaker 15: both services has just been full of people sort of

808
00:40:04,680 --> 00:40:07,680
Speaker 15: introducing themselves, saying, Hey, I'm just coming over to see

809
00:40:08,000 --> 00:40:11,480
Speaker 15: you know, the water's warm on this side, leaving X.

810
00:40:11,800 --> 00:40:14,000
Speaker 15: But the numbers seem to suggest this is happening as well.

811
00:40:14,040 --> 00:40:16,640
Speaker 15: So Blue Sky says it has added seven hundred thousand

812
00:40:16,760 --> 00:40:19,760
Speaker 15: new users in the last week. They now have fourteen

813
00:40:19,800 --> 00:40:23,120
Speaker 15: point five million total accounts that have been created, so

814
00:40:23,360 --> 00:40:25,719
Speaker 15: seven hundred thousand is a pretty significant jump. For them

815
00:40:25,760 --> 00:40:28,600
Speaker 15: in one week, and then Threads was the number one

816
00:40:28,960 --> 00:40:31,120
Speaker 15: free app in the US App Store yesterday, the first

817
00:40:31,160 --> 00:40:33,640
Speaker 15: time it had been in that number one spot in

818
00:40:33,719 --> 00:40:36,200
Speaker 15: a couple of weeks since before the election. So you

819
00:40:36,280 --> 00:40:39,240
Speaker 15: can see, you know that both kind of rival services

820
00:40:39,280 --> 00:40:40,640
Speaker 15: are having a little bit of a spike here, a

821
00:40:40,640 --> 00:40:42,399
Speaker 15: little bit of a moment as people, as you say,

822
00:40:42,760 --> 00:40:44,480
Speaker 15: are are looking for an alternative to X.

823
00:40:45,040 --> 00:40:48,040
Speaker 3: How are they using things like threads. People have many

824
00:40:48,680 --> 00:40:51,040
Speaker 3: ways of seeing that matters not wanted to be a

825
00:40:51,080 --> 00:40:54,640
Speaker 3: place for political discussion. But is it therefore going to

826
00:40:54,880 --> 00:40:57,319
Speaker 3: Threads or is it people behaving in a different manner.

827
00:40:57,719 --> 00:41:00,239
Speaker 15: Yeah, I think people want to go to three and

828
00:41:00,320 --> 00:41:03,400
Speaker 15: sort of feel like they're getting that Twitter experience. But

829
00:41:03,719 --> 00:41:06,359
Speaker 15: to your point, because Meta is sort of leaning away

830
00:41:06,400 --> 00:41:09,120
Speaker 15: from politics, they're not getting it for the most part,

831
00:41:09,440 --> 00:41:11,480
Speaker 15: and so as a result, I see a lot of

832
00:41:11,560 --> 00:41:13,960
Speaker 15: mixed kind of bag, right. I see some people who

833
00:41:14,360 --> 00:41:16,520
Speaker 15: who try to talk politics they're not really getting that

834
00:41:16,640 --> 00:41:19,120
Speaker 15: engagement and they're complaining about it. I know, for me,

835
00:41:19,239 --> 00:41:21,680
Speaker 15: on election night, I remember, excuse me, the day after

836
00:41:21,719 --> 00:41:24,560
Speaker 15: the election, I pulled something up on Threads that I

837
00:41:24,680 --> 00:41:27,880
Speaker 15: thought was brand new, you know, election related information I

838
00:41:27,880 --> 00:41:30,319
Speaker 15: found it, it was more than twenty four hours old, right,

839
00:41:30,480 --> 00:41:33,400
Speaker 15: so it's not really a great place right now for

840
00:41:33,520 --> 00:41:36,480
Speaker 15: breaking news. I think for people who used Twitter and

841
00:41:36,680 --> 00:41:40,400
Speaker 15: use x for news and especially political news, they're probably

842
00:41:40,480 --> 00:41:42,960
Speaker 15: not going to scratch that itch over on threads right now.

843
00:41:43,239 --> 00:41:45,359
Speaker 15: But remember this platform is not even two years old.

844
00:41:45,360 --> 00:41:46,880
Speaker 15: It's not even a year and a half old, so

845
00:41:47,000 --> 00:41:49,600
Speaker 15: it's still sort of figuring out exactly what it's for.

846
00:41:50,160 --> 00:41:52,000
Speaker 6: But it does have a large audience to do that.

847
00:41:52,480 --> 00:41:55,080
Speaker 3: And briefly, I mean, it hasn't switched on ads yet. Interestingly,

848
00:41:55,120 --> 00:41:57,200
Speaker 3: in Europe, we've been reporting that there's going to be

849
00:41:57,280 --> 00:41:59,879
Speaker 3: less personalized ads for Meta in Europe. But there's also

850
00:42:00,120 --> 00:42:03,560
Speaker 3: news that maybe we see TikTok not banned in the US.

851
00:42:03,760 --> 00:42:05,520
Speaker 3: That's something that you've been talking about a lot. Is

852
00:42:05,560 --> 00:42:07,720
Speaker 3: that impacting Meta and other social media companies?

853
00:42:09,080 --> 00:42:11,680
Speaker 15: It very well could, right because if TikTok does ultimately

854
00:42:11,719 --> 00:42:15,439
Speaker 15: get banned in January, the number one company that should

855
00:42:15,480 --> 00:42:18,200
Speaker 15: benefit would be Meta because they have a direct clone

856
00:42:18,239 --> 00:42:21,840
Speaker 15: of the TikTok product with reels in Instagram. Right, So

857
00:42:22,040 --> 00:42:25,800
Speaker 15: if TikTok kind of survives and continues, a lot of

858
00:42:25,840 --> 00:42:28,600
Speaker 15: that upside that people might be baking into MetaStock price

859
00:42:28,680 --> 00:42:31,600
Speaker 15: is going to go away, so I think it's logical

860
00:42:31,680 --> 00:42:33,520
Speaker 15: to think that if Meta is down, it could be

861
00:42:33,600 --> 00:42:35,400
Speaker 15: related to this idea that Trump might try.

862
00:42:35,280 --> 00:42:39,760
Speaker 3: To save TikTok Cut Wagner. Great reporting, We appreciate it. Meanwhile,

863
00:42:39,840 --> 00:42:42,000
Speaker 3: that does it for this edition of blombg Technology. Do

864
00:42:42,080 --> 00:42:44,120
Speaker 3: not forget to check out our podcast. You can find

865
00:42:44,160 --> 00:42:46,920
Speaker 3: it on the terminal as well as online on Apple, Spotify,

866
00:42:47,280 --> 00:42:49,920
Speaker 3: and iHeart from New York. This is the blomleg Technology