WEBVTT - Bitcoin Pulls Back, Other Musk Investments 0:00:02.440 --> 0:00:07.080 Bloomberg Audio Studios, Podcasts, radio news. 0:00:08.560 --> 0:00:12.840 From Mahart where Innovation, money and power Collie in Silicon 0:00:12.960 --> 0:00:17.360 Valley NBN. This is Bloomberg Technology with Caroline Hyde and 0:00:17.600 --> 0:00:18.680 Ed Ludlove. 0:00:32.360 --> 0:00:34.639 Live from New York. This is Bloomberg Technology coming up. 0:00:34.920 --> 0:00:38.640 Bitcoin saws close to ninety thousand and then pulls back 0:00:38.840 --> 0:00:42.000 as tech market shows signs of fatigue. We discuss where 0:00:42.040 --> 0:00:45.320 next for the Trump rally. Meanwhile, Tesla takes a breather 0:00:45.400 --> 0:00:48.120 after a forty percent surge since the election. Are the 0:00:48.159 --> 0:00:52.040 Elon Inc. Investments overdone? And fundamentals and focus as we 0:00:52.080 --> 0:00:55.320 dig into earnings with Shopify president among the executives joining 0:00:55.320 --> 0:00:57.520 the show. But first we just check in on what 0:00:57.560 --> 0:01:01.120 perhaps is a slight pullbuck for what has a phenomenal 0:01:01.200 --> 0:01:04.800 rally across tech companies and indeed across crypto. We're down 0:01:04.880 --> 0:01:06.520 just by about a ten per percent on the Nasdaq 0:01:06.560 --> 0:01:09.039 one hundred. Nvidia still on the higher side. Tesla drags 0:01:09.120 --> 0:01:12.119 us down from a points perspective after a real rapid 0:01:12.200 --> 0:01:14.960 run up. Says the election results on Wednesday, I'm looking 0:01:15.000 --> 0:01:16.560 what's happening in the world of crypto? What by one 0:01:16.560 --> 0:01:19.000 and a half percent at one point this number was 0:01:19.160 --> 0:01:22.080 so close to ninety thousand dollars in excess of eighty 0:01:22.160 --> 0:01:25.120 nine thousand, we draw back someone after we see technical 0:01:25.160 --> 0:01:27.880 signs of overbought if you're looking at the RSI, But 0:01:27.959 --> 0:01:31.680 overall we're also just seeing maybe a pause in the 0:01:31.760 --> 0:01:34.479 realities that have been a more than one hundred percent 0:01:34.520 --> 0:01:36.640 jump in bitcoin so far this year and a more 0:01:36.640 --> 0:01:40.320 than three trillion dollar market capitalization of the ecosystem in 0:01:40.360 --> 0:01:42.840 and of itself when you're looking at digital assets. Shanali 0:01:42.880 --> 0:01:45.520 Bassack is here for more, and boy have we come far, 0:01:45.680 --> 0:01:46.319 and maybe just. 0:01:46.240 --> 0:01:47.880 A bit of a pause here, a bit of a 0:01:47.920 --> 0:01:50.840 pause to your point, that ninety thousand dollars level is 0:01:50.920 --> 0:01:54.440 one to watch, I would say, Caroline. What it's incredible 0:01:54.560 --> 0:01:56.840 is even those in the crypto community watch what was 0:01:56.840 --> 0:02:00.520 happening this week with r because it was so stunning 0:02:00.600 --> 0:02:04.200 rise Jess yesterday alone. And you have to remember since 0:02:04.240 --> 0:02:07.480 before the election, bitcoin was trading at under seventy thousand 0:02:07.600 --> 0:02:10.840 dollars and so that rise to almost ninety thousand dollars. 0:02:10.840 --> 0:02:13.280 If you bought one bitcoin the day before the election, 0:02:13.440 --> 0:02:16.400 you're almost twenty thousand dollars richer for it. And you're 0:02:16.440 --> 0:02:19.320 seeing crypto link stocks also take a breather. The coin 0:02:19.400 --> 0:02:22.520 base for examples, take just their eight day gain. It 0:02:22.720 --> 0:02:25.840 is seventy five percent. So the run up you've seen 0:02:25.960 --> 0:02:29.280 is just tremendous, and you have to also take a note. 0:02:29.080 --> 0:02:31.840 How much news there still is to come. 0:02:32.240 --> 0:02:36.119 Typically in a new administration, you would see an SEC chair, 0:02:36.200 --> 0:02:39.440 for example, step down quite swiftly. We don't know how 0:02:39.600 --> 0:02:42.440 Gary Gensler is going to behave in this scenario, but 0:02:42.800 --> 0:02:46.520 any new SEC chief under a Trump administration would really 0:02:46.680 --> 0:02:49.880 be very telling for the direction of the industry. There 0:02:49.919 --> 0:02:52.680 are laws that are waiting to be passed when it 0:02:52.720 --> 0:02:55.720 comes to stable coin. There are questions about whether they 0:02:56.040 --> 0:02:57.800 will be a play out of the promise. 0:02:57.440 --> 0:02:59.000 Of a strategic bitcoin reserve. 0:02:59.360 --> 0:03:02.320 And later today we'll be talking to Marathon as well, 0:03:02.400 --> 0:03:04.480 and we'll talk a little bit about that mining promise, 0:03:04.760 --> 0:03:07.800 this kind of made in America crypto story, and how 0:03:07.880 --> 0:03:09.840 possible that is and how quickly that could. 0:03:09.680 --> 0:03:12.960 Ramp up as and when it becomes the crypto capital 0:03:12.960 --> 0:03:15.240 of the United States. At least that's the promise, Shanali. 0:03:15.400 --> 0:03:18.000 There are people though, in the meantime, making a whole 0:03:18.040 --> 0:03:19.840 lot of money. You just mentioned about how much you'd 0:03:19.840 --> 0:03:21.560 be up if you've been long bitcoined, But it took 0:03:21.600 --> 0:03:23.040 us through some of the billionaires doing well. 0:03:23.360 --> 0:03:26.480 Yeah, think about Mike Novogratz alone, for example, and he 0:03:26.720 --> 0:03:29.720 is a few billion dollars richer just off the most 0:03:29.760 --> 0:03:33.959 recent rally, and it really is just wealth simply tied 0:03:34.040 --> 0:03:38.080 to crypto. The Winklevi as well, Winklevoss twins of course, 0:03:38.160 --> 0:03:41.400 have had a tremendous comeback story. And you think about 0:03:41.400 --> 0:03:43.840 not just the most recent comeback and how much they've 0:03:43.880 --> 0:03:48.760 gained in the most recent rally, but where they were just. 0:03:48.840 --> 0:03:50.600 A couple of years before. 0:03:50.960 --> 0:03:54.320 The CEO of Binance as well, remember he had retained 0:03:54.320 --> 0:03:57.360 his stake in the cryptocurrency exchange. 0:03:57.440 --> 0:03:58.960 And when we think. 0:03:58.760 --> 0:04:01.920 About this as well, how are they making money? It's 0:04:01.920 --> 0:04:03.960 not just their holdings in bitcoin, but of course the 0:04:04.200 --> 0:04:09.520 enterprises that they oversee and the variety of assets they 0:04:09.520 --> 0:04:10.720 hold in the crypto community. 0:04:10.800 --> 0:04:11.640 You are seeing here. 0:04:11.600 --> 0:04:14.760 Now not just the surge you've seen in Bitcoin alone, 0:04:14.800 --> 0:04:18.520 but things like Solana and dogecoin, and then the exchanges, 0:04:18.560 --> 0:04:20.920 as we've talked about, that are owned by the likes 0:04:20.960 --> 0:04:25.279 of cz when it comes to finance and coinbase alone, 0:04:25.320 --> 0:04:27.680 and Brian Armstrong a billionaire as well. 0:04:28.080 --> 0:04:30.720 Shanali Beassek. You're going to want to hear more from 0:04:30.760 --> 0:04:34.240 her and her show Billibog Crypto twelve pm Eastern today, 0:04:34.600 --> 0:04:37.279 So appreciate you joining. Meanwhile, let's get to what it 0:04:37.279 --> 0:04:39.520 means for the rest of the market. Joe's as with us. 0:04:39.520 --> 0:04:42.160 He's managing partner at Millennia Capital, the tech fund focused 0:04:42.160 --> 0:04:45.160 on VC and growth equity investments. And Joe, we come 0:04:45.240 --> 0:04:47.160 to you not only because of your expertise in the 0:04:47.200 --> 0:04:49.440 world of enture capital, but also the former hat used 0:04:49.480 --> 0:04:52.279 to wear in monetary policy making over at the Federal Reserve. 0:04:52.880 --> 0:04:56.480 Many now wondering if these markets have rallied too far, 0:04:56.560 --> 0:04:58.919 particularly if you think about infraationy pressure is coming. What 0:04:58.960 --> 0:05:00.840 do you think is going on o the Fed right now? 0:05:01.120 --> 0:05:02.480 Look, let's start from the top. 0:05:02.720 --> 0:05:04.800 So I think the next two years are going to 0:05:04.800 --> 0:05:07.280 be really, really good for investments, So let's start with 0:05:07.400 --> 0:05:09.719 monitored policy. There's the easing cycle, not only in the 0:05:09.800 --> 0:05:14.120 US but globally, so capital is flowing back into financial markets, 0:05:14.600 --> 0:05:17.400 equity markets, and that will take kind of a year 0:05:17.480 --> 0:05:18.920 to materialize. 0:05:18.279 --> 0:05:21.320 But the easing cycle will continue even with tariffs. 0:05:20.880 --> 0:05:26.039 On them, because once the ship starts pivoting, it just 0:05:26.080 --> 0:05:28.880 doesn't stop overnight. And even if let's say we thought 0:05:28.920 --> 0:05:30.440 the terminal rate was going to be twenty a half, 0:05:30.720 --> 0:05:34.120 maybe now with teriffs and other stuff, maybe they'll end 0:05:34.120 --> 0:05:35.800 it at three percent. That's still going to be a 0:05:35.839 --> 0:05:38.320 lot easier than today at five percent. And then on 0:05:38.440 --> 0:05:41.560 the other side of fiscal policies, on the fiscal policy side, 0:05:41.680 --> 0:05:44.240 you're going to see the administration and the Congress working 0:05:44.240 --> 0:05:46.920 together to put a lot of I think stimulus into 0:05:46.960 --> 0:05:49.160 the economy, into the real economy. So when you come 0:05:49.160 --> 0:05:51.920 by monitor and fiscal you've got two things working at once. 0:05:51.960 --> 0:05:55.359 And that's why you know, I'd expect they're really economy 0:05:55.400 --> 0:05:57.640 to grow by two to three percent for the next 0:05:57.680 --> 0:06:00.279 few years. And if you're in tech investing, if you're kids, 0:06:00.279 --> 0:06:02.840 you'll probably benefit. So the rally we're seeing, I think 0:06:02.960 --> 0:06:05.560 is an early reflection of that. And I don't think 0:06:05.600 --> 0:06:07.799 this rallies even stop or past. 0:06:08.120 --> 0:06:10.080 Okay, so who leads us higher? And the moment on 0:06:10.120 --> 0:06:12.159 the day and video still manages to be above water 0:06:12.200 --> 0:06:13.920 when the rest of the tech market pulls back a bit, 0:06:14.080 --> 0:06:17.280 is it still the AI winners that lead the charge? 0:06:17.640 --> 0:06:20.000 It has to be because you know, AI is just 0:06:20.200 --> 0:06:22.600 the latest thing in tech, and you never want a 0:06:22.640 --> 0:06:26.279 short innovation human progress. AI is just the latest wave 0:06:26.400 --> 0:06:29.680 in innovation. And so we're in your or in the 0:06:29.720 --> 0:06:32.120 second ending of this AI cycle that's going to run 0:06:32.160 --> 0:06:34.920 for ten to fifteen years, and so AI is going 0:06:34.960 --> 0:06:37.240 to track Let's see, let's say real TDP is in 0:06:37.240 --> 0:06:39.799 a row two percent without AI. I think with AI, 0:06:40.160 --> 0:06:45.720 real TDP will probably grow by three percent approximately cager 0:06:45.880 --> 0:06:48.880 over the coming years. And AI is not only attracting 0:06:48.880 --> 0:06:51.599 a lot of investments, but it's also going to spin 0:06:51.640 --> 0:06:52.880 off a lot of applications. 0:06:53.160 --> 0:06:54.719 We're seeing someone that inventory capital. 0:06:54.720 --> 0:06:57.680 You see AI in robotics, you see AI in search, 0:06:58.120 --> 0:07:02.040 AI in healthcare, and AI AI agents. 0:07:02.240 --> 0:07:04.120 So in a coming two to five. 0:07:04.000 --> 0:07:05.960 Years, you're going to see a lot of new categories 0:07:05.960 --> 0:07:08.719 coming out and with a lot of new products, businesses 0:07:08.800 --> 0:07:10.400 and in bestwins. And that's kind of what's going to 0:07:10.480 --> 0:07:11.720 drive real GDP forward. 0:07:11.800 --> 0:07:15.600 So when people question the return on AI, when people 0:07:15.680 --> 0:07:18.160 are wondering, Okay, look, I see the hyperscale is putting 0:07:18.200 --> 0:07:20.720 ever more money into in video, but I'm not seeing 0:07:20.880 --> 0:07:24.040 impact my life or indeed broad now you say, just 0:07:24.240 --> 0:07:25.360 patients two things. 0:07:25.360 --> 0:07:27.720 One, these things grow like this, it's you know, we're 0:07:27.760 --> 0:07:30.440 at that early inflection point. The second thing, which I'll 0:07:30.440 --> 0:07:32.280 give like a very silly analogy that I've given our 0:07:32.320 --> 0:07:33.400 partners and I think my our. 0:07:33.320 --> 0:07:34.000 Partners love it. 0:07:34.360 --> 0:07:36.239 Let's say you have a few plans in your house 0:07:36.480 --> 0:07:37.840 you're looking at every single day. 0:07:37.880 --> 0:07:38.880 You're like, you're not growing. 0:07:39.120 --> 0:07:41.120 You go on vacation for weeks, you come back, the 0:07:41.160 --> 0:07:44.160 plan's gotten twice taller. So I think that the naysayers 0:07:44.200 --> 0:07:46.480 are looking at these things every single day. But what 0:07:46.600 --> 0:07:48.560 you got to do as an investor is to take 0:07:48.560 --> 0:07:51.640 a step back, check on these businesses and your portfolio 0:07:51.680 --> 0:07:54.080 companies every three to six nine months. You'll see that 0:07:54.080 --> 0:07:56.880 there's actually a lot of progress being made in our portfolio, 0:07:57.000 --> 0:08:00.720 in our ecosystem. We're seeing entrepreneurs coming out of incumbents 0:08:01.000 --> 0:08:03.120 every single day, coming out of some of the companies 0:08:03.120 --> 0:08:04.480 that STA build a landa and they're. 0:08:04.320 --> 0:08:05.320 Building new businesses. 0:08:05.560 --> 0:08:07.560 It does take two to five years to really building 0:08:07.640 --> 0:08:10.000 enduring business. Probably more so, I think we're just being 0:08:10.040 --> 0:08:10.880 a bit impatient. 0:08:11.360 --> 0:08:13.440 I'm looking at a portfailure. Now, we've got some interesting 0:08:13.480 --> 0:08:17.760 companies and let's just take for example, SpaceX, LED by 0:08:17.840 --> 0:08:20.320 one Elam Musk, who is now very close to the 0:08:20.360 --> 0:08:23.040 seat of power. How much does that make you feel 0:08:23.200 --> 0:08:26.320 as ultimately your view on Elon Musk being able to 0:08:26.360 --> 0:08:28.720 handle all these different roles is different job titles, whether 0:08:28.760 --> 0:08:30.440 or not it's an official role in the cabinet or not. 0:08:30.760 --> 0:08:32.560 Do you still want to be backing the companies that 0:08:32.600 --> 0:08:33.080 he builds? 0:08:33.559 --> 0:08:36.120 Well, Look, we're very fortunate to have invested in many 0:08:36.120 --> 0:08:39.360 companies that are category leaders in AI in various sector's cloud. 0:08:39.760 --> 0:08:42.559 And I think on this entrepreneur, and I can't talk 0:08:42.559 --> 0:08:44.880 too much about it. The one thing that I'll say is, 0:08:44.920 --> 0:08:47.400 and I'm gonna use another silly analogy, you don't bet 0:08:47.440 --> 0:08:50.679 against the greatest entrepreneur of all time before he's even 0:08:50.760 --> 0:08:53.959 hit his prime. And I think, you know, so, I 0:08:54.000 --> 0:08:56.719 think whether it's this company or other companies, we take 0:08:56.760 --> 0:09:00.880 a long view and in fact, post liquidity events for 0:09:00.920 --> 0:09:04.920 these investments with distribute stocks to our investors as the 0:09:04.960 --> 0:09:07.400 management from scaling offices and our capital. 0:09:07.120 --> 0:09:08.400 Base is long term focused. 0:09:08.520 --> 0:09:09.959 So I think we're going to be holding these stocks 0:09:09.960 --> 0:09:12.160 for the next five, ten, fifteen years, and we're really 0:09:12.160 --> 0:09:15.040 betting on what's coming for you know, down the pipeline. 0:09:15.400 --> 0:09:18.160 Do you bet against companies he's taken issue with because 0:09:18.160 --> 0:09:19.160 he's taking an issue with opening. 0:09:19.640 --> 0:09:22.440 No, No, like I think that in you know, again, 0:09:22.480 --> 0:09:24.800 we're long AI, We're long tech, we're long innovation, We're 0:09:24.840 --> 0:09:29.800 long of the American economy. And I think that I think, 0:09:29.840 --> 0:09:32.240 you know, there are some folks I've encounters who are 0:09:32.280 --> 0:09:35.040 really really negative on some of these things. 0:09:35.400 --> 0:09:36.560 And what I'll say is. 0:09:36.559 --> 0:09:39.280 You can short a stock in the short term, but 0:09:39.360 --> 0:09:42.920 you can't short any economy. If you're short innovation, human spirit, 0:09:42.920 --> 0:09:45.240 and the real economy, you might not do so well. 0:09:45.640 --> 0:09:48.839 So sometimes these stocks will come come up and down, 0:09:48.880 --> 0:09:51.120 both in public and private markets. But again, as a 0:09:51.120 --> 0:09:53.719 long term investor, we're supposed to hold a long view 0:09:54.120 --> 0:09:56.199 and just being these companies for five, ten, fifteen years, 0:09:56.240 --> 0:09:57.400 and I think we'll do fine. 0:09:57.720 --> 0:10:02.480 What about China or other countries that are trying to 0:10:02.520 --> 0:10:05.840 build tech ecosystems that the US is ultimately potentially going 0:10:05.920 --> 0:10:07.280 to start pushing against even harder. 0:10:07.320 --> 0:10:10.120 You look, I was in the UK, I was in Dubai, 0:10:10.200 --> 0:10:12.520 I was in Asia, and I think you know there's 0:10:12.640 --> 0:10:14.839 you know, we're in a UK based ad company, we're 0:10:14.840 --> 0:10:18.200 in one in Israel and you travel around the world, 0:10:18.320 --> 0:10:21.720 the US is by far the category leader in this 0:10:21.800 --> 0:10:26.680 AI race. Everybody else is miles behind, and there's two, 0:10:26.720 --> 0:10:29.679 three and four might not be you know, are probably 0:10:29.800 --> 0:10:32.199 very far behind. And I think that this race is 0:10:32.240 --> 0:10:35.040 only starting just I don't see sort of our positions 0:10:35.200 --> 0:10:37.240 being challenged yet. But I think competition is greatright because 0:10:37.280 --> 0:10:39.040 you makes you work harder. But I think if you 0:10:39.080 --> 0:10:42.240 look at our portfolio, our theusis is we think that 0:10:42.920 --> 0:10:46.520 this AI boom is going to drag tech earnings and 0:10:46.600 --> 0:10:50.480 tech growth by a big amount, and that I think 0:10:50.480 --> 0:10:52.480 in the next ten years we're going to look back 0:10:52.840 --> 0:10:54.240 like how we looked at the Internet and be like, 0:10:54.240 --> 0:10:55.320 why don't we invest more? 0:10:56.040 --> 0:10:58.280 That plant is going to grow a lot of wofully 0:10:58.679 --> 0:11:02.240 hopefully going to have him here in the studio. Managing 0:11:02.280 --> 0:11:15.120 partner and Millennium Capital Shopify shares say that twice plenty 0:11:15.720 --> 0:11:18.000 it's soaring at the moment. Look we're having the best days. 0:11:18.000 --> 0:11:20.079 It's May twenty twenty three, after the reported third quarter 0:11:20.120 --> 0:11:23.000 of sales that climbed twenty six percent. This is a 0:11:23.080 --> 0:11:25.480 sign that the Canadian e commerce company is really gaining 0:11:25.520 --> 0:11:28.280 momentum with big enterprise clients. European growth. We're going to 0:11:28.320 --> 0:11:30.800 dig into it with the shop OFFI President, Harley Finkelstein. 0:11:30.920 --> 0:11:32.480 Great to have you back on the show, Harley, and 0:11:32.960 --> 0:11:35.400 just talk to us about the growth trajectory here and 0:11:35.440 --> 0:11:37.839 how you're seeing a shift in particular to enterprise clients. 0:11:37.840 --> 0:11:38.520 Can you talk us through it? 0:11:39.440 --> 0:11:41.280 Absolutely, I mean it was a great quarter, certainly. 0:11:41.440 --> 0:11:44.079 GMV was up twenty four percent to sixty nine billion, 0:11:44.120 --> 0:11:46.280 revenue was up twenty six percent to two point two billion, 0:11:46.520 --> 0:11:49.319 and free cashual margin expanded in nineteen percent. So I 0:11:49.360 --> 0:11:51.320 think what you're seeing is you're seeing us grow both 0:11:51.360 --> 0:11:53.240 the top land but also the bottom line. And I 0:11:53.280 --> 0:11:54.960 think the other thing that, as you sort of point out, 0:11:55.000 --> 0:11:57.400 which we're really excited about, is that more merchants are 0:11:57.440 --> 0:12:00.840 coming to Shopify across verticals, across geography, and even across 0:12:00.920 --> 0:12:04.040 sizes of merchants. In one area that I'm especially proud 0:12:04.080 --> 0:12:07.160 of is the headway we're making bringing the biggest brands 0:12:07.320 --> 0:12:10.120 on the planet on to Shopify. In fact, this quarter alone, 0:12:10.280 --> 0:12:13.880 we saw sixteen enterprise launches on Shopify. Companies like Hanes 0:12:14.400 --> 0:12:17.160 and on Running and Off White and Victorious secret To 0:12:17.200 --> 0:12:19.160 coming to us as well. And so I think We're 0:12:19.200 --> 0:12:21.760 really substantial that we're not just an e commerce company 0:12:22.040 --> 0:12:24.520 for a domestic type of merchant, but we can handle 0:12:24.559 --> 0:12:26.880 the largest businesses that want to sell globally. 0:12:26.800 --> 0:12:30.320 And as you said, companies that are globally based as well. 0:12:30.480 --> 0:12:33.080 Europe really shining a light where many would perhaps feel 0:12:33.120 --> 0:12:36.480 that the European economy might not vindicate that. Tell us 0:12:36.480 --> 0:12:38.199 about the growth in Germany and France and the light. 0:12:38.960 --> 0:12:40.079 Yeah, it's remarkable. 0:12:40.160 --> 0:12:43.160 I mean, you know, we think about international from two 0:12:43.240 --> 0:12:45.480 sort of vectors. The first is when you set up 0:12:45.520 --> 0:12:47.640 for Shopify, how can we make it really easy to 0:12:47.760 --> 0:12:50.200 be default global as opposed to just think about your 0:12:50.240 --> 0:12:53.920 home country as your total adressable market on Shopify using 0:12:53.960 --> 0:12:56.520 things like managed markets, you can immediately sell everywhere. But 0:12:56.640 --> 0:12:59.640 the other vector is also merchants that come to Shopify. 0:12:59.760 --> 0:13:03.160 And if you look at international GMV that outpaced North 0:13:03.200 --> 0:13:05.559 America at over thirty percent year on year in Q three. 0:13:05.920 --> 0:13:09.079 European specific GMV grew over thirty five percent in Q 0:13:09.280 --> 0:13:11.400 three year on year, that was led by UK, Germany, 0:13:11.600 --> 0:13:13.439 France and the Netherlands. And if you look at the 0:13:13.520 --> 0:13:16.960 merchant base itself, international merchants increased by thirty six percent 0:13:17.200 --> 0:13:17.800 year over year. 0:13:18.120 --> 0:13:20.240 So we're seeing success, certainly in North. 0:13:20.120 --> 0:13:22.200 America and the English speaking world, but we're all seeing 0:13:22.240 --> 0:13:23.720 a lot of success right now in era. 0:13:24.000 --> 0:13:26.480 A lot of that has been perhaps you've been enticing 0:13:26.559 --> 0:13:29.040 these new clients because you in particular hardly have been 0:13:29.040 --> 0:13:31.559 willing to spend on sales and marketing. How much does 0:13:31.600 --> 0:13:34.719 that remain more than three hundred million dollar endeavor on 0:13:34.800 --> 0:13:35.160 a quarter? 0:13:36.160 --> 0:13:38.040 Yeah, I mean the way we think about first of all, 0:13:38.200 --> 0:13:40.720 up until very recently, you know, the focus on Shaft 0:13:40.840 --> 0:13:42.559 was product and we only started building our go to 0:13:42.640 --> 0:13:45.199 market engine specifically for the enterprise in the last you know, 0:13:45.240 --> 0:13:47.320 two years or so, and it's really starting to work. 0:13:47.440 --> 0:13:50.319 When you combine really good, strong execution on go to 0:13:50.400 --> 0:13:54.760 market with really great marketing, the results speak for themselves. 0:13:54.960 --> 0:13:57.360 The way we think about marketing, though, is very scientific. 0:13:57.640 --> 0:14:00.640 We have very strong guardrails in eighty month payback is 0:14:00.679 --> 0:14:02.880 that we look for and when we see opportunities to 0:14:02.960 --> 0:14:05.760 spend to get a proper return in a proper you know, 0:14:06.040 --> 0:14:08.000 payback period, we spend and if we don't, we do 0:14:08.120 --> 0:14:11.040 pull back. But the content that the entire philosophy around 0:14:11.080 --> 0:14:14.360 marketing is ROI driven. We experiment if we see results, 0:14:14.480 --> 0:14:15.160 we double. 0:14:14.920 --> 0:14:18.600 Down and many singling out the operating margin nineteen percent. 0:14:18.760 --> 0:14:21.800 Liking that. So sticking to that particular focus, I'm interested 0:14:21.880 --> 0:14:24.640 in the expansion. Basically, you've always been known as this 0:14:25.400 --> 0:14:28.240 provider of tools for mum and pop shops, and now 0:14:28.480 --> 0:14:30.840 clearly it is growing. The enterprise size is growing, the 0:14:30.920 --> 0:14:34.600 international focus is growing, and also wholesale is growing. What 0:14:34.720 --> 0:14:37.840 about this B to B element, It's pretty remarkable. 0:14:37.880 --> 0:14:40.520 I mean, you know, this all started because of existing 0:14:40.600 --> 0:14:43.440 merchants on Shopify who are very very strong and direct 0:14:43.480 --> 0:14:46.600 to consumer, you know, selling director to the end consumer 0:14:46.880 --> 0:14:48.960 began to ask us if we can also help them 0:14:49.360 --> 0:14:51.920 sell wholesale sell to their on the B to B 0:14:52.040 --> 0:14:54.640 side of things, and so we started probablybout two and 0:14:54.680 --> 0:14:57.120 a half years ago, put in together a very compelling product. 0:14:57.120 --> 0:15:00.920 You allow existing merchants to also sell to also sell 0:15:01.000 --> 0:15:03.880 to to in a B to B fashion. The end 0:15:03.960 --> 0:15:06.360 result is that a lot of B to B only 0:15:06.480 --> 0:15:09.600 exclusive merchants began to come to Shopify, companies like Carrier 0:15:09.760 --> 0:15:12.120 that are using shopla to sell industrial heating and cooling, 0:15:12.720 --> 0:15:16.200 you know, pieces of technology and engines. And the result 0:15:16.320 --> 0:15:18.200 is that B to B GMB grew over one hundred 0:15:18.200 --> 0:15:20.200 and forty five percent your of UR and Q three. 0:15:20.440 --> 0:15:23.280 That's five consecutive quarters of triple digit B to B 0:15:23.400 --> 0:15:25.440 GMB growth. And so you know, you use a great 0:15:25.520 --> 0:15:27.440 term before you said, you know, we started as as 0:15:27.680 --> 0:15:30.720 SMB and specific, but now we're also seeing a lot 0:15:30.760 --> 0:15:33.000 of success around B to B internationals we talked about, 0:15:33.040 --> 0:15:36.120 but also offline we are now powering many more large, 0:15:36.160 --> 0:15:39.800 complex multilocation merchants. In fact, offline GMB was a twenty 0:15:39.880 --> 0:15:42.000 seven percent year on year. And what you're seeing when 0:15:42.000 --> 0:15:44.120 you sort of bring this all together is we are 0:15:44.200 --> 0:15:49.040 creating this unified, single retail operating system so that large 0:15:49.080 --> 0:15:50.880 brands and small brands can come to us and sell 0:15:50.880 --> 0:15:52.760 across every single surface area. 0:15:53.200 --> 0:15:56.200 We've got very little time, Hallie, but what do you 0:15:56.360 --> 0:15:59.080 put in place if we are going to see more tariffs, 0:15:59.120 --> 0:16:00.280 how will that affect your business? 0:16:01.040 --> 0:16:03.160 I mean, we've been operating for twenty years. I've been 0:16:03.160 --> 0:16:04.880 a shop life for more than a third of my life, 0:16:04.920 --> 0:16:07.680 and we've seen a lot of administrations come in. Our 0:16:07.800 --> 0:16:09.880 job is not to try to predict exactly what's going 0:16:09.960 --> 0:16:12.040 to happen. Whatevery administration is going to do. Our job 0:16:12.160 --> 0:16:14.000 is to arm our merchants with everything you need to 0:16:14.040 --> 0:16:16.800 be successful no matter what comes out. And like I said, 0:16:16.800 --> 0:16:18.640 we've been doing that for more than two decades. We 0:16:18.640 --> 0:16:19.640 will continue to do that. 0:16:20.160 --> 0:16:22.600 Haney Finkelstein. Great to have you shop a five President. 0:16:22.720 --> 0:16:24.840 Thank you. Now let's turn our attention to this year 0:16:24.920 --> 0:16:26.760 Singles Day Hall. It appears to be one of the 0:16:26.760 --> 0:16:29.440 biggest yet all according to China's biggest e commace platforms 0:16:29.480 --> 0:16:31.520 like Ali Baba, like JD dot Com which all is 0:16:31.640 --> 0:16:34.440 you a raft of numbers showing robust growth showing the 0:16:34.480 --> 0:16:37.680 country's biggest anial online shopping Gala. But there are some 0:16:37.760 --> 0:16:39.920 selective disclosures going on from some of the tech leaders. 0:16:39.920 --> 0:16:41.560 An investors are at to concern they're getting a kind 0:16:41.560 --> 0:16:44.280 of incomplete picture. Henry Wren has got the inside track 0:16:44.320 --> 0:16:45.640 for us. What are we worried about? Henry? 0:16:46.880 --> 0:16:49.960 So Yeah, this year marks the fifteenth anniversary. 0:16:49.480 --> 0:16:50.200 Of Single Stay. 0:16:50.280 --> 0:16:53.760 But unlike the previous years where when you have those 0:16:53.880 --> 0:16:58.000 e commerce platforms throwing our huge watching parties disclosing sales 0:16:58.000 --> 0:17:01.640 states on our to hour basis, these companies just disclose 0:17:01.800 --> 0:17:05.240 data on selective basis. For example, JD dot Com said 0:17:05.280 --> 0:17:08.480 that shoppers on its platform increased by twenty percent, while 0:17:08.560 --> 0:17:13.000 premium shoppers on Ali Baba's team Ol platforms they increased 0:17:13.000 --> 0:17:16.600 fifty percent. But as you said, these are all selective disclosures. 0:17:17.520 --> 0:17:22.280 Alternative data. For example, third party providers said gmbs on 0:17:22.359 --> 0:17:25.600 e commerce platforms during period increased by twenty seven percent 0:17:25.680 --> 0:17:26.240 year over year. 0:17:26.520 --> 0:17:28.440 But we also have to take that with a pinch 0:17:28.480 --> 0:17:29.120 of salt as. 0:17:29.040 --> 0:17:33.560 Well, because these days e commerce platforms are elongating their 0:17:34.160 --> 0:17:37.200 double eleven discount period to almost a month, which is 0:17:37.400 --> 0:17:40.439 the longest in the fifteen years of history. So all 0:17:40.480 --> 0:17:42.000 those kinds of data need to take in with a 0:17:42.040 --> 0:17:44.440 pinch of salt. And as we know, the macro is 0:17:44.440 --> 0:17:46.320 still weak in China, the housing market is still in 0:17:46.359 --> 0:17:48.800 the downturn, and consumers are still cautious. 0:17:49.119 --> 0:17:51.040 So is just Singles Day losing significance. 0:17:52.480 --> 0:17:56.199 Yeah, you can say that because the Single Day has 0:17:56.240 --> 0:17:59.440 been running for almost a month and it came actually 0:17:59.560 --> 0:18:02.800 right after the National Day holiday, which is in early October, 0:18:02.960 --> 0:18:06.960 So you can say that those two events are just packed. 0:18:06.760 --> 0:18:09.760 Up along with each other, along with each other. 0:18:09.880 --> 0:18:12.320 But also in the meantime, we are having other shopping 0:18:12.359 --> 0:18:14.480 events around the year as well. For example, sixty one 0:18:14.560 --> 0:18:17.000 eight is another event that people are watching about. So 0:18:17.359 --> 0:18:21.000 we can say that there are indeed a sharper fatigue 0:18:21.119 --> 0:18:23.040 at this period of time because there are so many 0:18:23.119 --> 0:18:24.000 discounts going on. 0:18:24.440 --> 0:18:25.240 All over the year. 0:18:25.640 --> 0:18:28.959 Henry Wren, we so appreciate it. Meanwhile, let's turn our 0:18:29.000 --> 0:18:31.480 attention to Snap for a moment. Shares, as you'll see, 0:18:31.560 --> 0:18:34.200 under pressure by more than four percent. Reports that Trump 0:18:34.320 --> 0:18:37.560