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Speaker 1: From Mark Hard We're Innovation of Money and Power Collie

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Speaker 1: in Silicon Valley, NBN. This is Bloomberg Technology with Caroline

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Speaker 1: Hyde and Ed Ludlove.

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Speaker 2: I'm Caroline Hyde at Bloomberg's World headquarters in New York,

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Speaker 2: and I'm Ed Ludlow in San Francisco.

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Speaker 3: This is Bloomberg Technology coming up.

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Speaker 2: Full earnings coverage ahead, and we're going to be kicking

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Speaker 2: off the show with Reddit CEO Steve Huffman.

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Speaker 3: Plus later this hour we'll turn to ride sharing and

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Speaker 3: sit down with the CEO of Lift, and.

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Speaker 2: We'll hear from Alphabet CEO so No a pitchy ahead

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Speaker 2: of Google's developer conference. Io will break that down and

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Speaker 2: discuss so much more throughout this hour, But first we

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Speaker 2: turn our attention to what is happening more broadly on

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Speaker 2: the markets. Maybe we look at this risk asset of

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Speaker 2: choice to start bitcoin currently on the downside versus the

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Speaker 2: US dollar, or it really shows risk appetite is waning

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Speaker 2: at the moment. Ed, we've got a stronger dollar though,

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Speaker 2: and more broadly, we've seen kind of lackluster moves on

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Speaker 2: the benchmarks. More broadly, I wonder if the director can

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Speaker 2: bring up at the moment. What's happening when the Nasdaq

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Speaker 2: more broadly and tex stocks have been underwater a little

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Speaker 2: bit as we've pulled lower on some of the chip

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Speaker 2: names in particular. Look at the Nasdaq basically trading flat.

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Speaker 2: We're off by seven points. There's caution out there ahead

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Speaker 2: of maybe some bond auctions to come.

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Speaker 4: We've seen the sell off in the bond market.

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Speaker 2: Yields as we've been seeing on the tenure just up

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Speaker 2: about two three basis points. We've got a big flood

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Speaker 2: of money coming with a supply of tenure debt coming

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Speaker 2: on auction a little bit later.

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Speaker 4: How will that be taken down supply goes up? Of course,

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Speaker 4: maybe a little bit of a sell off. But I'm

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Speaker 4: showing a light.

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Speaker 2: And what's happening more broadly with the socks the Philadelphia

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Speaker 2: Semiconductor Index. Why is that lower when we've seen some

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Speaker 2: real ramifications from that news that broke yesterday all regarding

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Speaker 2: HUAWEIH once again limitations on the access to chips made

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Speaker 2: here in the United States by Intel by Qualcom. We

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Speaker 2: can dig into that story a little bit later, ed,

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Speaker 2: but I want to show that actually we're bouncing off

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Speaker 2: our loads when it comes to the socks. But what

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Speaker 2: if you've got on the micro perspective.

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Speaker 3: Well, in the first instance, earnings, there's going to be

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Speaker 3: a lot throughout the hour outside of earnings. But let's

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Speaker 3: start there with the tail of two ride sharing apps,

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Speaker 3: Uber and lyft Okay. Uber has a lot more to

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Speaker 3: it than ride sharing, but in its quarter there was

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Speaker 3: issues of seasonality. Regionally, it was a bit weaker and

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Speaker 3: the stock is down pretty significantly. Then you have the

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Speaker 3: little brother of ride sharing, Lyft, and its stock is higher.

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Speaker 3: It actually was pretty strong. You know. It wasn't just

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Speaker 3: that gross bookings, which is the industry standard metric, was

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Speaker 3: stronger than expected. They're also seeing kind of some bump

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Speaker 3: in activity for the riders themselves, not just rider growth,

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Speaker 3: but stickiness the amount they're using it. Then you have Rivian.

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Speaker 3: Rivian's a difficult one. It's not really about in the moment,

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Speaker 3: it's about the future. Later in the hour, we hear

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Speaker 3: again from the CEO Rjscarrange, and what I tried to

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Speaker 3: get from him was a sense of like, is this

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Speaker 3: really going to plan? Then there's Reddit redd its debut earnings.

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Speaker 3: We want to get to that stock and welcome our

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Speaker 3: Bloomberg TV and radio audiences worldwide. Read it out with

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Speaker 3: its first earnings report as a public company, shares markedly

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Speaker 3: higher seven percent. Let's bring in Reddit CEO Steve Huffman

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Speaker 3: and Steve the quarter gone forty eight cent top line growth.

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Speaker 3: You're doing well. The ad environment seems really good. But

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Speaker 3: I actually want to start with the next big thing,

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Speaker 3: and that seems to be the user economy. That seems

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Speaker 3: to be your focus. Tell me about the user economy strategy.

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Speaker 5: So, good morning, thanks for having me.

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Speaker 6: So, the user economy is the family of products and

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Speaker 6: features that we're building to facilitate transactions between users on

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Speaker 6: the platform, so user to user, gifting user to use

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Speaker 6: their subscription, user community, subscriptions, things like that. We think

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Speaker 6: there's a ton of potential here. One of our sayings

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Speaker 6: that Reddit is the only thing that scales with the

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Speaker 6: users is users. And so look, the ads business is

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Speaker 6: great and can scale pretty much infinitely from our point

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Speaker 6: of view, but we'd love to have another business model

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Speaker 6: to sit alongside it, and that's what the user economy.

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Speaker 4: Is, Steve alongside.

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Speaker 2: Also, the ad business that you say can infinitely scale

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Speaker 2: has been AI in the selling of data and licensing

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Speaker 2: to some of those big businesses that are creating large

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Speaker 2: language models based upon the data that you license, Google being.

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Speaker 4: One of them.

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Speaker 2: How infinite is that revenue stream? Because once the models

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Speaker 2: are trained, how necessary is it to keep on licensing.

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Speaker 5: So I think there's a couple of ways to look

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Speaker 5: at this.

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Speaker 6: First, the potential value here is I think quite large,

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Speaker 6: and between us and other folks in the market, we're

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Speaker 6: actually still developing that. You know, we're finding increasingly folks

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Speaker 6: coming to Reddit. And I think what we're seeing overall

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Speaker 6: big picture is in the AI era, where increasingly content

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Speaker 6: online is written by machines, there's this increasing premium content perspectives,

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Speaker 6: conversation that comes from real humans, and that's what Reddit provides.

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Speaker 6: So so far we've done one kind of major content

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Speaker 6: licensing deal with Google, but we're talking to others as well.

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Speaker 6: But your question about is is it a one time

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Speaker 6: thing or ongoing? I think what's really important here is

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Speaker 6: folks want real time access to up to date information,

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Speaker 6: conversation perspectives.

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Speaker 5: Right.

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Speaker 6: Imagine a search engine that stopped indexing in twenty twenty one.

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Speaker 5: It wouldn't be very helpful. And so I think that

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Speaker 5: real time feed is really important.

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Speaker 3: Steve, you took the interesting step to ask redditors and

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Speaker 3: particularly redditors who investors in the IPO, to submit questions,

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Speaker 3: and those some of which you answered on the call

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Speaker 3: and some of which you will follow up in video form.

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Speaker 3: We're showing one of them now, which is what is

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Speaker 3: the justification for having one billion dollars in working capital?

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Speaker 3: I want to take that question and apply it to AI.

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Speaker 3: You know, data licensing is a revenue generation tool for you.

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Speaker 3: But on the technology side, might we see some m

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Speaker 3: and A that answers that question from your redditor community,

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Speaker 3: but also helps us understand a bit more like what

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Speaker 3: are you guys going to do to increase competence to

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Speaker 3: increase the technology offering on AI?

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Speaker 5: Sure, we'll look.

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Speaker 6: Our first priority with the cash is to invest in

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Speaker 6: the business, so to continue to develop the core Reddit product,

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Speaker 6: the user economy, which we discussed, the developer platform, our

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Speaker 6: AI efforts, all of those things.

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Speaker 5: Our second priority would be M and A.

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Speaker 6: And so you know, we're always I think looking in

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Speaker 6: the market for teams and technology that can really kind

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Speaker 6: of help advance our initiatives. And right as you allude to,

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Speaker 6: I think there's just a tremendous opportunity in AI in search,

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Speaker 6: both to make our core product better and potentially to

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Speaker 6: expand it as well.

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Speaker 2: Let's talk about expansion and particularly internationally, Steve, because there's

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Speaker 2: much talk about how you're basically translating able to bring

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Speaker 2: what is all the reviews, the content, the discussion groups,

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Speaker 2: not just to those that are writing and speaking in

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Speaker 2: the English language, but in French and European countries.

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Speaker 4: How is this.

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Speaker 2: Likely to be enabled by AI but also add to

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Speaker 2: the scale of international growth.

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Speaker 5: Well, this is really exciting.

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Speaker 6: Like, not that long ago, we didn't have the capability

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Speaker 6: of translating our content at human quality, but with today's

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Speaker 6: large language models, we can do that, and so we

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Speaker 6: can translate our what is today our mostly English corpus

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Speaker 6: into just about any language. And so we're doing that

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Speaker 6: in French right now and testing that in France, and

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Speaker 6: it's going very well, and so almost immediately French speakers

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Speaker 6: can see the entire Reddit corpus or consume their entire

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Speaker 6: redit corpus in English. And a lot of reddits content

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Speaker 6: is universal, right, it's just people talking about life. But

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Speaker 6: even the content that is maybe regionally specific to America,

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Speaker 6: I think it's still really interesting to read and vice versa.

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Speaker 5: And so I'm really excited.

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Speaker 6: At this idea that we can fulfill the promise of

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Speaker 6: the Internet, which is allow people around the world, in

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Speaker 6: different countries and different cultures to communicate in their native language.

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Speaker 3: For our Bloomberg television and radio audience worldwide, we're speaking

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Speaker 3: to the Reddit CEO Steve Huffman, and Steve things are

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Speaker 3: going well right now. It seems one of the technology

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Speaker 3: changes at the start of this year and even before that,

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Speaker 3: was that Google started applying its work in large language

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Speaker 3: models and AI to its search engine. And there is

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Speaker 3: a school of thoughts that Reddit was a beneficiary of

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Speaker 3: that that just within search, Reddit becomes more commonplace up

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Speaker 3: the results that are given. Can you give us any

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Speaker 3: sort of granularity on how that's helping you with growing

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Speaker 3: the redditor base and keeping the redditor base.

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Speaker 5: Well, let's just take a step up for a second.

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Speaker 6: Reddit has what people want, right, People have questions.

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Speaker 5: They often go to Google with questions. Reddit has the

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Speaker 5: best answers on the Internet.

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Speaker 6: They want advice, they want information, they want a sense

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Speaker 6: of community and belonging. These are the things that Reddit

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Speaker 6: provides and search engines like Google ten years ago, last year, today, tomorrow,

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Speaker 6: help people find that content on Reddit. They're looking for

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Speaker 6: those answers, they're looking for those communities they're looking for.

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Speaker 5: And so I think I look at this as a

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Speaker 5: natural evolution.

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Speaker 6: Search engines are getting smarter, they're getting better, they're getting

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Speaker 6: more effective, which means they're getting more effective at helping

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Speaker 6: users find what they're looking for on Reddit, which of

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Speaker 6: course benefits our platform and our business. And so I

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Speaker 6: think these are all I think welcome evolutions. But Reddit

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Speaker 6: it's been a net beneficiary of search for a long time,

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Speaker 6: and I expect that to continue.

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Speaker 2: How much have you been a net beneficiary of going public, Steve?

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Speaker 2: How much did the IPO help draw people to the platform.

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Speaker 2: How much was it a pr event do you think

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Speaker 2: and actually boosted some of the community there.

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Speaker 5: Well, look, I'm sure that's an aspect to it.

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Speaker 6: You know, it's hard to say and that you know,

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Speaker 6: Reddit primarily grows through word of mouth anyway. You know,

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Speaker 6: we don't really do consumer marketing, and so I think

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Speaker 6: anytime we're in the news that helps in the IPO

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Speaker 6: with a lot of news. But look, the reason I

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Speaker 6: was most excited about the IPO is that we are

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Speaker 6: able to.

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Speaker 5: Include our users as investors.

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Speaker 6: Our users have this deep sense of ownership over Reddit,

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Speaker 6: right they create the communities, they create the culture, they

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Speaker 6: create all of the content, and for them to have

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Speaker 6: the opportunity to be actual owners. That was our dream

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Speaker 6: and that was one of the main reasons we went

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Speaker 6: public in the first place. So that's actually what I'm

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Speaker 6: most excited about.

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Speaker 3: Steve is a kind of returning founder. CEO of Date,

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Speaker 3: what's your one personal goal for this year, it's something

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Speaker 3: you want to achieve.

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Speaker 5: Well, we mapped out two of them.

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Speaker 6: We got the company public and I had my second kid,

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Speaker 6: and so for the rest of this year, I want

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Speaker 6: to deliver on some of the product initiatives that I've

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Speaker 6: been very excited about, so developer platform, the user economy,

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Speaker 6: the machine translation that we've discussed. These are all things

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Speaker 6: I think in the day to day building of Reddit

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Speaker 6: that I'm very excited about.

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Speaker 2: Steve, congrats, I'm the second kid. Reddit CEO, Steve Hoffman,

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Speaker 2: I try to have you with us.

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Speaker 4: Thank you.

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Speaker 2: Now, coming up, we'll hear from the Alphabet CEO Sin

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Speaker 2: of hitsheie his vision for the future of artificial intelligence

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Speaker 2: as next and.

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Speaker 4: What are you watching.

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Speaker 3: We continue with the earning story and we take a

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Speaker 3: look at shares of a firm lower again eight and

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Speaker 3: a half percent. It's really been a season of if

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Speaker 3: you don't beat expectations or your prior guidance, you go

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Speaker 3: down lower. Continued about product differentiation, continue discussion about the

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Speaker 3: rate environment with the firm as well, or continue the

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Speaker 3: earnings coverage. Much more ahead. This is Bloomberg Technology.

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Speaker 2: Let's talk open AI because it's developing a feature for

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Speaker 2: chatchbt that can search the web and cite sources and

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Speaker 2: its results according to a source.

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Speaker 4: Now, the future, we would all allow users.

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Speaker 2: To ask chatchbt a question and receive answers that use

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Speaker 2: details from the web with citations to sources.

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Speaker 4: Just think Wikipedia entries and blog posts.

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Speaker 2: Now, this could potentially be competing head on with AI search,

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Speaker 2: Startle Perplexity, and of course Google Search. And speaking of which,

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Speaker 2: Google and Alphabet CEO so on a pitch I sat

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Speaker 2: down exclusively with blubgo Original's host Emily Tang to discuss

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Speaker 2: the future of search and accelerating work on Google's AI models.

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Speaker 2: Here's what he had to say on some of the

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Speaker 2: growing pains of Google searchers adaptation to the AI revolution.

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Speaker 7: Anytime there's a transition, you get an explosion of new content,

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Speaker 7: and AI is going to do that. So for us,

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Speaker 7: we view this as the challenge, and I actually think

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Speaker 7: here there'll be people will struggle to do that right.

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Speaker 3: So doing that well is what.

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Speaker 7: Will define a high quality product, and I think it's

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Speaker 7: going to be the heart of what makes so successful.

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Speaker 8: You make a ton of money on ads next to

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Speaker 8: the links generated by searchers if a chatbot is giving

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Speaker 8: you answers and not links, and maybe more answers in links.

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Speaker 8: Sometimes are we in the midst of an assault on

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Speaker 8: Google's business model.

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Speaker 7: So we've always found people want choices, including in commercial area,

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Speaker 7: and that's a fundamental need and I think we've always

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Speaker 7: been able to balance it. As we are rolling out

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Speaker 7: Aiovius and Search, we've been experimenting with ads and the

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Speaker 7: data we see shows that those fundamental principles will hold

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Speaker 7: true during the space as well.

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Speaker 8: The images that Gemini initially generated of Asian Nazis and

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Speaker 8: black Founding fathers, you said that was unacceptable.

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Speaker 9: If you look at any pictures of the.

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Speaker 8: Founding fathers, you're seeing old white men. People are calling

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Speaker 8: this Woki and it's not just happening here, It's happening

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Speaker 8: across the industry. How did the model generate something that

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Speaker 8: it never saw.

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Speaker 7: We are a company which serves products uses around the world,

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Speaker 7: and there are generic questions. For example, people come and

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Speaker 7: say show me images of school teachers or doctors or nurses.

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Speaker 7: We have people asking discovery from Indonesia or the US.

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Speaker 7: How do you get it right for our global user base.

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Speaker 7: Obviously the mistake was that we over applied, including case

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Speaker 7: the spirit should have never applied.

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Speaker 9: So that was the bug.

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Speaker 7: And you know, you know, so we got it wrong.

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Speaker 3: That was alphabet CEO Cunda Pinschai and Bloomberg Original's host

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Speaker 3: Emily Changi. You can catch the full interview from the

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Speaker 3: circuit tonight at six pm Eastern on Bloomberg Television.

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Speaker 2: Let's just check in on the shares of Shopify because

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Speaker 2: they're down the most on record US after the company

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Speaker 2: forecasts lower profit margins as I can induce to really

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Speaker 2: be boosting the marketing spend now. The comments company also

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Speaker 2: reported a surprise net loss in the first quarter after

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Speaker 2: the sale of its logistics business last year. Joining us

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Speaker 2: now to break down the results. Harley Finkelstein, Shopify president,

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Speaker 2: and Harley I remember speaking with Toby look At, the

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Speaker 2: CEO of the business once and he said that anytime

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Speaker 2: anyone talks about the share price in the office, while

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Speaker 2: everyone has to be bought donuts, I have a fee

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Speaker 2: that might be some downuts.

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Speaker 9: To day specific specific.

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Speaker 2: Yeah, Harley, I mean, what what does it feel like

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Speaker 2: when you see the shares down that hard?

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Speaker 9: Oh?

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Speaker 10: I'm I mean we've always managed the business in a

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Speaker 10: long term way. What we actually and what you're seeing

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Speaker 10: at Shopify right now is we got came on the show. Actually,

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Speaker 10: I think it's wo to end about this new shape

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Speaker 10: of Shopify is unlocking our potential. We're helping all different

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Speaker 10: types of merchants take more and more of our products.

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Speaker 10: But let's just kind of break down. You know, how

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Speaker 10: the quarter went. I mean, we generate almost two billion

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Speaker 10: dollars of revenue. That was a twenty three percent year

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Speaker 10: a year. We had a billion dollars a gross profit

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Speaker 10: and very important in this particular macro environment, Carolyn. We

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Speaker 10: had free cashual of two hundred and thirty two million

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Speaker 10: dollars for the quarter. In fact, free cash margin doubled

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Speaker 10: from Q one of last year, so you're seeing I

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Speaker 10: think one of the best versions of Shopify with a

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Speaker 10: ton of opportunities, whether it's enterprise, physical, retail, international B

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Speaker 10: to B. We are very excited about about what we

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Speaker 10: did in Q one. We're very excited about the future

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Speaker 10: of this company.

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Speaker 3: Hally. The anxiety from investors about fitting margins, right, I

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Speaker 3: think we all set that as the baseline. One thing

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Speaker 3: you've been focused on is marketing, right, which accounts for

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Speaker 3: that in part? Give me some specifics. What kind of

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Speaker 3: marketing are you doing? And I think you've also said

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Speaker 3: it's going to pay off in about eighteen months time.

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Speaker 3: How do you know the marketing spend will pay off? Well?

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Speaker 10: First of all, we think about marketing and the same

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Speaker 10: way we think about building products, build the best solutions,

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Speaker 10: build the best internal tools to drive decision through data,

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Speaker 10: and the results are evident.

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Speaker 9: I'll go with them in a second.

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Speaker 10: But one of the things that we really believe is

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Speaker 10: that shopi line needs to be agile and at times countercyclical.

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Speaker 10: When we see opportunities for us to take advantage and

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Speaker 10: gain more market share across any of our core products,

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Speaker 10: We're going to do that. But the key for us

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Speaker 10: is striking a balance between top line growth, operational leverage,

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Speaker 10: and profitability. And I think what differentiates Shopify from a

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Speaker 10: growth perspective or marketing perspective to user words is that

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Speaker 10: the way we interpret data, the way we experiment, actually

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Speaker 10: helps us to win.

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Speaker 9: And we have multiple drivers of this growth.

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Speaker 10: But the best proof I can give you is we

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Speaker 10: drove a nearly one hundred and thirty percent increase immersion

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Speaker 10: ADS within one of our key marketing channels, sure you know,

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Speaker 10: the one from Q four to Q one, while still

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Speaker 10: remaining squarely within our payback Guardrails. So when we see

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Speaker 10: the people that other companies are pulling back and we

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Speaker 10: think we can get a return on our AD spend,

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Speaker 10: that again is within Guardrails has the right CAC to

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Speaker 10: L two ratios that in twenty twenty five you will

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Speaker 10: see the growth from these efforts. We're going to take

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Speaker 10: those and back to sort of the question Caroline open with,

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Speaker 10: that's the reason why we don't really care about the

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Speaker 10: day to day stock fluctuation. We care about over the

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Speaker 10: long run, does a stock price reflect the real value

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Speaker 10: of the company. And Shopify is becoming the global retail company.

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Speaker 3: Next month, you're going to have a big event, and

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Speaker 3: I think I'm right in saying it's the first in

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Speaker 3: person event at least since before the pandemic twenty eighteen.

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Speaker 3: That is a marketing expense, but there must be a

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Speaker 3: reason for doing.

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Speaker 9: It, certainly.

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Speaker 10: I mean, we are thriving in this remote first environment

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Speaker 10: and we see immense value in getting people together as well.

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Speaker 10: So some at SHOPIAY Summit is accommodation of multiple events

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Speaker 10: that brings together our team, our partners, our top one

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Speaker 10: thousand developers from all all over the world. And you know,

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Speaker 10: we think that it's this remote first philosophy and working

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Speaker 10: model allows us to recruit the best of the brands

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Speaker 10: from all over the world. But a key component of

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Speaker 10: this digital bide design approach is also supplementing it with

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Speaker 10: a few real life events, and we have not done

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Speaker 10: We've not brought the entire company together in person, and

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Speaker 10: since like twenty eighteen, we think it's important to do so,

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Speaker 10: especially because we can also get our developers, our third

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Speaker 10: party developers in the room, explain to them all the

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Speaker 10: opportunities of how they should be building on Shopify. Then

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Speaker 10: they go back home and they and they continue their

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Speaker 10: businesses as well. So it's an important event for us,

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Speaker 10: and we're excited by the Shopfy summit, and.

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Speaker 2: I can imagine that it's important for morale, particularly after layoffs.

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Speaker 4: Holly, are layoffs done now?

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Speaker 10: We have no plans to do any additional layoffs at

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Speaker 10: this point. What you are seeing, Caroline is this new

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Speaker 10: shape of Shopify. We have been able to grow top line,

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Speaker 10: We've been able to grow bottom line. We're making serious

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Speaker 10: investments in the future of our business now we're doing

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Speaker 10: so with a relatively flat headcount. In fact, if you

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Speaker 10: go back three quarters, headcount has not grown that much.

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Speaker 10: What matters to us is the talent density of the company,

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Speaker 10: and this is the best talent team, the best version

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Speaker 10: of Shopify I've seen in my fifteen years of being here.

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Speaker 2: And you've talked about how this is. You're being countercyclical

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Speaker 2: right now. Just tell us how countercyclical. How many headwinds

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Speaker 2: are you experiencing in the world of the consumer right now?

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Speaker 4: How reticent are they to shop?

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Speaker 10: Yeah, I mean it's really important, obviously because the state

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Speaker 10: of the consumers as obviously, and the whole macro trend

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Speaker 10: is something that everyone's thinking about. First of all, we

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Speaker 10: see the consumer actually remaining quite resilient. What we do see,

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Speaker 10: in particular is that these consumers are buying from brands

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Speaker 10: they love and feel ineffinity to. And all those brands

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Speaker 10: think of the brands you love are all on Shopify.

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Speaker 10: But a new area of business are those less discretionary

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Speaker 10: brands like Nesley or Hines or bark Box or Figs

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Speaker 10: whose scrubs are in hospitals all over the country.

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Speaker 9: Those are also using Shopify as well.

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Speaker 10: And when you combine in our enterprise offering, Shopify point

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Speaker 10: a cell, which is the physical retail product we have,

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Speaker 10: plus B to B plus all these new merchant solutions

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Speaker 10: like audiences to help with ads, shop off a capital Shoppey,

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Speaker 10: which is the best can run accelerated check out. You're

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Speaker 10: beginning to see that all these on raps are going

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Speaker 10: to lead to serious growth in our future. And that's

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Speaker 10: the reason why the sentiment inside of Shopify right now

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Speaker 10: is incredibly optimistic.

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Speaker 3: Shop five President Harley Finkelstein, thank you, welcome back to

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Speaker 3: Bloomber Technology ed Lovelow in San Francisco.

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Speaker 2: Aline hid right here in New Or let's check in

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Speaker 2: on these market said, because we're basically flat when you're

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Speaker 2: looking at the big benchmarks. I'm looking the na's that

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Speaker 2: one hundred on the day and a.

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Speaker 4: Little bit of a cautious tone. And look, we've had

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Speaker 4: four straight days of games. That has been a good run.

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Speaker 2: But we're also trying to digest a macro picture that's

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Speaker 2: not giving us much. We're still looking at the FED

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Speaker 2: and some of the speakers coming from the federals.

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Speaker 4: EV, but more some of the microheadwinds.

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Speaker 2: When you think of well chip maker is trying to

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Speaker 2: sell into geopolitical headwinds. That's more of what we're boiling

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Speaker 2: down to on the day. When it comes to tech stocks,

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Speaker 2: I'm looking at the tenure yield. Though this is a

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Speaker 2: macro picture. This is one of sales. This is an

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Speaker 2: auction of tenure debt coming. I'm currently off by about

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Speaker 2: two basis points. When you're thinking of yields going higher,

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Speaker 2: prices falling. Bitcoin also on the lower side, resentiment a

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Speaker 2: little bit dower there or off by one point four percent.

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Speaker 2: Maybe that's also to do with a stronger US dollor

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Speaker 2: on the day, but also whether those ETF flows just

440
00:22:22,160 --> 00:22:23,920
Speaker 2: cooling down a little bit. Let's look at some of

441
00:22:24,000 --> 00:22:25,720
Speaker 2: the micro pictures that we want to shine a light

442
00:22:25,760 --> 00:22:27,320
Speaker 2: on though, and we just referenced it just before we

443
00:22:27,359 --> 00:22:29,879
Speaker 2: went to break. Tesla currently off by one point six percent.

444
00:22:29,920 --> 00:22:32,520
Speaker 2: Now we know that US prosecutors have been looking in

445
00:22:32,560 --> 00:22:35,160
Speaker 2: the way in which Tesla and Eilon Musk have discussed

446
00:22:35,240 --> 00:22:38,920
Speaker 2: self driving. Did they mislead investors? Do they mislead consumers?

447
00:22:39,040 --> 00:22:41,080
Speaker 2: But now the nuance is coming from a router's report

448
00:22:41,119 --> 00:22:44,320
Speaker 2: saying that maybe they're looking at them for securities fraud,

449
00:22:44,560 --> 00:22:46,919
Speaker 2: wire fraud. Potentially that's a router's report. We're off by

450
00:22:46,920 --> 00:22:49,280
Speaker 2: one point six percenters, we're just reminded of the US

451
00:22:49,359 --> 00:22:53,040
Speaker 2: prosecutor's investigation. Armholdings up by quarter of a percent. Now,

452
00:22:53,119 --> 00:22:55,239
Speaker 2: remember this is a company we were looking at this.

453
00:22:55,480 --> 00:23:00,679
Speaker 2: Its current valuation is ninety times future earnings. At the moment,

454
00:23:01,160 --> 00:23:03,879
Speaker 2: many wondering how they live up to this valuation on

455
00:23:03,920 --> 00:23:06,480
Speaker 2: the market. How we baked in too much from euphoria

456
00:23:06,520 --> 00:23:08,880
Speaker 2: around AI for this chip designer. Their earnings come after

457
00:23:08,880 --> 00:23:11,280
Speaker 2: the bell so tooos the Airbnb and look, we're looking

458
00:23:11,280 --> 00:23:14,400
Speaker 2: for bookings ultimately to be slowing, in fact flowing bookings

459
00:23:14,440 --> 00:23:16,160
Speaker 2: growth for Airbnb that will likely to have seen since

460
00:23:16,200 --> 00:23:18,520
Speaker 2: twenty twenty. That's what the market braces itself for or

461
00:23:18,520 --> 00:23:20,159
Speaker 2: a more than a percentage point ed.

462
00:23:20,240 --> 00:23:21,080
Speaker 4: But what are you looking at.

463
00:23:21,760 --> 00:23:24,240
Speaker 3: Well, let's head out to DC and talk about TikTok,

464
00:23:24,320 --> 00:23:27,320
Speaker 3: after its China based parent, byte Dance made it clear

465
00:23:27,680 --> 00:23:30,919
Speaker 3: it won't comply with the new US law requiring it

466
00:23:31,000 --> 00:23:34,199
Speaker 3: to sell the video sharing app, saying quote that for

467
00:23:34,240 --> 00:23:37,000
Speaker 3: the first time in history, Congress is an acted a

468
00:23:37,080 --> 00:23:41,080
Speaker 3: law that subjects a single named speech platform to a

469
00:23:41,119 --> 00:23:46,520
Speaker 3: permanent nationwide band and bars every American from participating in

470
00:23:46,600 --> 00:23:50,800
Speaker 3: a unique online community with more than one billion people worldwide.

471
00:23:50,800 --> 00:23:52,680
Speaker 3: I want to bring in Bloombergs Chris Strome to break

472
00:23:52,680 --> 00:23:54,879
Speaker 3: it all down. It is not a surprise, right Chris.

473
00:23:55,320 --> 00:23:58,719
Speaker 3: The legal challenge, but the question to be considered by

474
00:23:58,760 --> 00:24:01,440
Speaker 3: the courts is whether or not this is an outright ban,

475
00:24:02,000 --> 00:24:04,640
Speaker 3: And I think the academic consensus is that that will

476
00:24:04,640 --> 00:24:06,400
Speaker 3: be something the court looks at closely.

477
00:24:08,040 --> 00:24:10,560
Speaker 11: Yeah, that's absolutely right. I mean TikTok is making a

478
00:24:10,600 --> 00:24:14,240
Speaker 11: few different arguments here. They're saying that, you know, the

479
00:24:14,240 --> 00:24:17,439
Speaker 11: the law that was signed in fringes on on on

480
00:24:17,480 --> 00:24:22,119
Speaker 11: the first Amendment, it represents an illegal taking, and uh,

481
00:24:22,520 --> 00:24:26,359
Speaker 11: you know, TikTok is saying that it's not feasible for

482
00:24:26,440 --> 00:24:30,800
Speaker 11: them to separate you know, TikTok us from the rest

483
00:24:30,840 --> 00:24:34,560
Speaker 11: of the TikTok you know global community. And so really

484
00:24:34,560 --> 00:24:36,720
Speaker 11: what TikTok has done here is they've just bought a

485
00:24:36,760 --> 00:24:39,800
Speaker 11: lot of time by filing this lawsuit, because there's no

486
00:24:39,840 --> 00:24:42,280
Speaker 11: way this is going to be resolved by next January.

487
00:24:43,359 --> 00:24:46,159
Speaker 11: There's going to be a long court battle, you know,

488
00:24:46,200 --> 00:24:48,000
Speaker 11: regardless of what happens, There's going to be appeals. It's

489
00:24:48,000 --> 00:24:49,880
Speaker 11: most likely going to go to the Supreme Court.

490
00:24:51,359 --> 00:24:53,960
Speaker 2: Okay, And this sort of time frame many feeling that

491
00:24:54,040 --> 00:24:57,679
Speaker 2: an expedited ruling isn't gonna come until say the fourth quarter,

492
00:24:58,000 --> 00:24:59,600
Speaker 2: then you have to look ahead to January when it

493
00:24:59,680 --> 00:25:02,480
Speaker 2: ultimately it might be then at least banned or at.

494
00:25:02,480 --> 00:25:03,439
Speaker 4: Least has to be sold.

495
00:25:03,600 --> 00:25:05,720
Speaker 2: It feels as though the sentiment very much is is

496
00:25:06,280 --> 00:25:09,960
Speaker 2: that this isn't going to be a sales process, right.

497
00:25:10,400 --> 00:25:12,520
Speaker 11: Bike Dances making it clear at this point that they

498
00:25:12,680 --> 00:25:17,879
Speaker 11: have no intention of divesting TikTok. They are gonna you know,

499
00:25:17,880 --> 00:25:21,879
Speaker 11: they're digging in for a prolonged legal battle and also

500
00:25:21,960 --> 00:25:24,760
Speaker 11: probably with the hopes of you know, a Trump administration

501
00:25:24,840 --> 00:25:29,120
Speaker 11: that might be more friendly to them, and so the

502
00:25:29,200 --> 00:25:31,560
Speaker 11: law says that they need to divest by next January

503
00:25:31,720 --> 00:25:34,040
Speaker 11: or there's going to be a ban in the United States.

504
00:25:36,440 --> 00:25:39,960
Speaker 11: The legal process won't be resolved by then. If they

505
00:25:40,040 --> 00:25:42,000
Speaker 11: get up to the point where the band is supposed

506
00:25:42,000 --> 00:25:44,160
Speaker 11: to go into effect, they'll most likely seek an emergency

507
00:25:44,160 --> 00:25:46,840
Speaker 11: in junction to prevent that band from going to and

508
00:25:47,200 --> 00:25:50,960
Speaker 11: going going to effect, and it'll most likely be granted.

509
00:25:51,400 --> 00:25:54,600
Speaker 11: And so, you know, we're long ways away from this

510
00:25:54,640 --> 00:25:55,840
Speaker 11: being resolved.

511
00:25:57,080 --> 00:26:00,000
Speaker 3: Chris, who are the players here? You just outline brilliant

512
00:26:00,200 --> 00:26:02,720
Speaker 3: the kind of short term and long term process. But

513
00:26:02,800 --> 00:26:05,840
Speaker 3: if Bike Dance has filed a legal challenge, who are

514
00:26:05,880 --> 00:26:08,200
Speaker 3: they challenging. Who's on the other side of the table.

515
00:26:09,840 --> 00:26:12,760
Speaker 11: Yeah, it's interesting because they actually filed their lawsuit against

516
00:26:13,040 --> 00:26:16,800
Speaker 11: the Attorney General Meryrick Garland. And part of the reason

517
00:26:16,800 --> 00:26:20,359
Speaker 11: for that is because according to the law, DJs and

518
00:26:20,840 --> 00:26:25,560
Speaker 11: is charged with enforcing the law. And so you know,

519
00:26:26,359 --> 00:26:29,200
Speaker 11: in order to bring a legal lawsuit, they needed to find,

520
00:26:29,320 --> 00:26:31,439
Speaker 11: you know, a defendant that they were gonna that they

521
00:26:31,440 --> 00:26:35,639
Speaker 11: were going to sue, so they chose Meyork Garland. But really,

522
00:26:35,880 --> 00:26:38,920
Speaker 11: you know, they're they're challenging the law that Congress passed

523
00:26:38,920 --> 00:26:42,320
Speaker 11: that Biden signed and saying it's unconstitutional.

524
00:26:43,560 --> 00:26:46,359
Speaker 2: Amidst all of this, we have players weighing in whether

525
00:26:46,400 --> 00:26:49,840
Speaker 2: it's Steve monusan previous Treasury Sextuori sat down in David

526
00:26:49,840 --> 00:26:52,760
Speaker 2: Weston yesterday talking about how he's still hoping that he

527
00:26:52,800 --> 00:26:54,600
Speaker 2: might be able to get his hands on TikTok, perhaps

528
00:26:54,600 --> 00:26:57,280
Speaker 2: without the algorithm he'd rebuild it. Had Eric Schmid on

529
00:26:57,280 --> 00:27:00,119
Speaker 2: the show yesterday who had been interested in buying the US.

530
00:27:00,119 --> 00:27:00,720
Speaker 4: Version of TikTok.

531
00:27:00,760 --> 00:27:02,320
Speaker 2: He backs away from that and actually says that this

532
00:27:02,440 --> 00:27:05,120
Speaker 2: is just more broadly should be regulated in the US

533
00:27:05,240 --> 00:27:10,200
Speaker 2: rather than banned. But Chris, I'm interested from a legal perspective,

534
00:27:10,200 --> 00:27:12,440
Speaker 2: can we read anything across from what happened in Montana?

535
00:27:12,720 --> 00:27:15,280
Speaker 2: Can we feel that sentiment will be on the side

536
00:27:15,280 --> 00:27:18,560
Speaker 2: from a First Amendment perspective, even if though we're hearing

537
00:27:18,560 --> 00:27:22,720
Speaker 2: from TikTok that they couldn't legally actually separate the businesses anyhow.

538
00:27:23,720 --> 00:27:27,240
Speaker 11: Uh, there's gonna be a lot of support for TikTok's

539
00:27:27,280 --> 00:27:30,960
Speaker 11: It's already it's already coming, and it's gonna it's gonna

540
00:27:31,280 --> 00:27:37,439
Speaker 11: h span the political spectrum, the economic spectrum. You have

541
00:27:38,760 --> 00:27:42,280
Speaker 11: you know, people who advocate for free speech uh saying

542
00:27:42,280 --> 00:27:45,080
Speaker 11: that TikTok shouldn't be banned. You have people who are

543
00:27:45,119 --> 00:27:49,239
Speaker 11: saying that the government hasn't made u, you know, a

544
00:27:49,520 --> 00:27:53,639
Speaker 11: legitimate national security argument to try to ban TikTok. I

545
00:27:53,640 --> 00:27:56,720
Speaker 11: would expect that there's gonna be a lot of amicus

546
00:27:56,800 --> 00:28:00,760
Speaker 11: filings in this case, and then you have this statecases

547
00:28:00,800 --> 00:28:04,560
Speaker 11: that are playing out like you mentioned, and so you know,

548
00:28:04,600 --> 00:28:06,720
Speaker 11: for the foreseeable future, there's going to just be a

549
00:28:06,720 --> 00:28:08,480
Speaker 11: lot of litigation over this issue.

550
00:28:09,320 --> 00:28:13,040
Speaker 3: Blimbers Kristrom, thank you very much. Former US Treasury Secretary

551
00:28:13,040 --> 00:28:16,320
Speaker 3: Steve maninschen As Caroenline says, says he's still interested in

552
00:28:16,400 --> 00:28:19,720
Speaker 3: buying TikTok's US operations from its Chinese owner, Byte Dance,

553
00:28:20,080 --> 00:28:23,760
Speaker 3: but believes the social media app's critical video recommendation technology

554
00:28:24,080 --> 00:28:25,639
Speaker 3: could be replicated. Listen to this.

555
00:28:26,520 --> 00:28:28,840
Speaker 12: Still very interested in buying it, and to the extent

556
00:28:28,880 --> 00:28:31,439
Speaker 12: they want to sell it or spin it off, we

557
00:28:31,600 --> 00:28:35,440
Speaker 12: very much want to pursue that. I support that Congress

558
00:28:35,480 --> 00:28:37,720
Speaker 12: passed the bill and it's now been signed into law.

559
00:28:38,200 --> 00:28:39,560
Speaker 5: I will say this is had just.

560
00:28:39,680 --> 00:28:43,959
Speaker 12: Incredible overwhelming support with the Republicans and Democrats. This may

561
00:28:44,000 --> 00:28:47,840
Speaker 12: be the only thing that everybody agrees on the fact

562
00:28:47,840 --> 00:28:48,440
Speaker 12: that it's on.

563
00:28:48,320 --> 00:28:50,080
Speaker 4: One hundred and sixty million phones.

564
00:28:50,120 --> 00:28:53,160
Speaker 12: I do think it's a security issue now.

565
00:28:53,360 --> 00:28:56,120
Speaker 2: One of the other people who are at one point

566
00:28:56,160 --> 00:28:58,880
Speaker 2: reported to be interested in getting in on buying with

567
00:28:59,000 --> 00:29:01,960
Speaker 2: minution was Google or former Google CEO Eric Schmidt. We

568
00:29:02,000 --> 00:29:05,200
Speaker 2: spoke with him yesterday and he's actually non interested anymore.

569
00:29:05,240 --> 00:29:05,840
Speaker 4: Just take a listen.

570
00:29:07,120 --> 00:29:11,400
Speaker 13: My personal view on this is you're better off regulating

571
00:29:11,440 --> 00:29:16,000
Speaker 13: than banning or a judicial action. All the big tech

572
00:29:16,000 --> 00:29:17,640
Speaker 13: companies are now in the hands of.

573
00:29:17,600 --> 00:29:19,600
Speaker 3: The DOJ in various legal fights.

574
00:29:19,840 --> 00:29:21,000
Speaker 1: I would prefer to see.

575
00:29:20,800 --> 00:29:23,200
Speaker 13: A regulatory regime that it sort of has the right

576
00:29:23,240 --> 00:29:25,960
Speaker 13: incentives and the right prohibitions for all of these things.

577
00:29:26,280 --> 00:29:28,719
Speaker 13: My own view of TikTok is that TikTok is not

578
00:29:28,760 --> 00:29:31,640
Speaker 13: really social media, it's really television, and that you can

579
00:29:31,680 --> 00:29:34,360
Speaker 13: regulate television by the equivalent of the equal time rule.

580
00:29:34,480 --> 00:29:36,120
Speaker 13: But somehow we're not having that conversation.

581
00:29:38,400 --> 00:29:41,320
Speaker 3: Let's get back to earnings and Rivian posting a wider

582
00:29:41,400 --> 00:29:44,840
Speaker 3: than expected adjusted loss in the first quarter. A break

583
00:29:44,840 --> 00:29:47,800
Speaker 3: down the results Rivian CEO R J. Scaringe.

584
00:29:49,080 --> 00:29:51,520
Speaker 14: The challenge with this number is it's a false metric

585
00:29:51,560 --> 00:29:54,440
Speaker 14: and it just causes It just caused a lot of noise,

586
00:29:54,480 --> 00:29:56,800
Speaker 14: and so we'd like to rather focus on the product.

587
00:29:57,600 --> 00:30:02,080
Speaker 14: We're tears out from launch, and our goal is to

588
00:30:02,160 --> 00:30:04,400
Speaker 14: pete ramping production as quickly as possible so that people

589
00:30:04,400 --> 00:30:05,960
Speaker 14: don't have to wait as long as they had to

590
00:30:05,960 --> 00:30:08,360
Speaker 14: wait in the case of our R one products.

591
00:30:09,840 --> 00:30:12,480
Speaker 3: Oh, Jay, something I noticed is interesting in your filings

592
00:30:12,720 --> 00:30:15,560
Speaker 3: is the proportion of the R one generation that at

593
00:30:15,680 --> 00:30:19,680
Speaker 3: least versus ball seems to be going up. Could you

594
00:30:19,760 --> 00:30:22,560
Speaker 3: give us that proportion and is it a good thing

595
00:30:22,640 --> 00:30:25,560
Speaker 3: for Rivian right now in this environment where you're between

596
00:30:25,600 --> 00:30:29,400
Speaker 3: the two growth phases if more are one generations at.

597
00:30:29,440 --> 00:30:34,920
Speaker 14: Least, Yeah, we don't disclose the split between sales and lease.

598
00:30:35,720 --> 00:30:38,200
Speaker 14: We now we've expanded least to offer that on R

599
00:30:38,240 --> 00:30:41,480
Speaker 14: one s as well, and we've added a number of

600
00:30:41,480 --> 00:30:44,760
Speaker 14: states that we offer leasing. Believe it's not thirty two states.

601
00:30:46,040 --> 00:30:46,200
Speaker 3: Now.

602
00:30:46,480 --> 00:30:50,120
Speaker 14: The key to recognize is leasing does have an advantage

603
00:30:50,120 --> 00:30:54,240
Speaker 14: for electric vehicles and that any lease qualifies for the

604
00:30:54,400 --> 00:30:58,160
Speaker 14: seven thousand and five fron dollar attack credit, and so

605
00:30:58,200 --> 00:31:01,720
Speaker 14: that leads to disproportionately large number of leases relative to

606
00:31:01,840 --> 00:31:06,000
Speaker 14: an internal combustion engine vehicle given the benefits of that

607
00:31:06,160 --> 00:31:06,840
Speaker 14: of that credit.

608
00:31:07,800 --> 00:31:09,200
Speaker 15: And I do want to talk a little bit about

609
00:31:09,200 --> 00:31:11,640
Speaker 15: what's going on with the factories because you shut down

610
00:31:11,680 --> 00:31:14,960
Speaker 15: some of the assembly lines to make component upgrades. If

611
00:31:15,000 --> 00:31:17,120
Speaker 15: you could just walk us through the math and sort

612
00:31:17,120 --> 00:31:19,000
Speaker 15: of the path board on how that gets through to

613
00:31:19,120 --> 00:31:21,920
Speaker 15: positive gross profit by the fourth quarter, that.

614
00:31:21,920 --> 00:31:22,640
Speaker 8: Would be helpful.

615
00:31:24,520 --> 00:31:24,880
Speaker 5: Yeah, we.

616
00:31:26,760 --> 00:31:30,400
Speaker 14: Started production in late twenty twenty one, and this was

617
00:31:30,440 --> 00:31:33,560
Speaker 14: the first time, you know, walking through the plant that

618
00:31:33,560 --> 00:31:35,240
Speaker 14: there had been no vehicles on the lines. At the

619
00:31:35,280 --> 00:31:39,480
Speaker 14: start of April, the plant was really empty. We drained

620
00:31:39,480 --> 00:31:43,840
Speaker 14: out everything that we were producing with the largely original

621
00:31:43,840 --> 00:31:48,400
Speaker 14: supply chain and component design, made a large number of

622
00:31:48,480 --> 00:31:51,800
Speaker 14: changes to the plant, and then also had a number

623
00:31:51,840 --> 00:31:54,760
Speaker 14: of new suppliers come on board replacing existing suppliers and

624
00:31:54,800 --> 00:31:57,760
Speaker 14: the park designs and component designs, and that's going to

625
00:31:57,840 --> 00:32:00,880
Speaker 14: lead to a step change improvement in our structure, both

626
00:32:00,960 --> 00:32:04,080
Speaker 14: at the bill of materials level, but importantly also at

627
00:32:04,080 --> 00:32:06,720
Speaker 14: the what we call the conversion costs level, allowing the

628
00:32:06,760 --> 00:32:09,960
Speaker 14: plant to run more efficiently. And we did a similar

629
00:32:10,160 --> 00:32:13,920
Speaker 14: shutdown with our ED program, and that was something we

630
00:32:13,960 --> 00:32:16,040
Speaker 14: did at the beginning of twenty twenty three. We took

631
00:32:16,040 --> 00:32:19,400
Speaker 14: about thirty five percent bill of material cost out of

632
00:32:19,480 --> 00:32:22,400
Speaker 14: the vehicle with that shutdown, and the scale of change

633
00:32:22,520 --> 00:32:25,080
Speaker 14: we've made with our one here is very similar to that.

634
00:32:26,320 --> 00:32:30,040
Speaker 2: Great interview ed the Rivian CEO R J. Scarrange along

635
00:32:30,160 --> 00:32:30,800
Speaker 2: with Kitiger.

636
00:32:30,840 --> 00:32:31,360
Speaker 4: I felt too.

637
00:32:31,480 --> 00:32:34,240
Speaker 2: Now coming up will be joined by Logitech CEO. I

638
00:32:34,320 --> 00:32:37,000
Speaker 2: like a favor about consumer tech and gaining on AI

639
00:32:37,160 --> 00:32:39,640
Speaker 2: so much more. That conversation you don't want to miss

640
00:32:39,840 --> 00:32:40,920
Speaker 2: as a blue meg technology.

641
00:32:50,960 --> 00:32:52,080
Speaker 4: Let's talk Logitech.

642
00:32:52,320 --> 00:32:55,760
Speaker 2: It's linking its products to guess what artificial intelligence in

643
00:32:55,840 --> 00:32:58,719
Speaker 2: a whole number of ways, like with new AI Promptu

644
00:32:58,760 --> 00:33:01,760
Speaker 2: software which will turn your Logitech keyboard your mouse. It's

645
00:33:01,800 --> 00:33:04,680
Speaker 2: basically a shortcut to chat YOUBT a priest and welcome

646
00:33:04,760 --> 00:33:05,400
Speaker 2: here in New York.

647
00:33:05,480 --> 00:33:07,440
Speaker 4: Ha a favor. Now for more.

648
00:33:07,520 --> 00:33:09,600
Speaker 2: She's just finished our firste hundred days at Logitech, new

649
00:33:09,640 --> 00:33:14,480
Speaker 2: ceo coming via here and interested to hear about how

650
00:33:14,640 --> 00:33:17,320
Speaker 2: much how quickly you've had to evolve with AI. Was

651
00:33:17,320 --> 00:33:19,040
Speaker 2: it something that you already had in the locker, you

652
00:33:19,040 --> 00:33:19,760
Speaker 2: were already look.

653
00:33:19,600 --> 00:33:21,400
Speaker 16: In this direction, or something that you were able to

654
00:33:21,400 --> 00:33:23,880
Speaker 16: be nimble on. Yeah, I think we have a very

655
00:33:23,960 --> 00:33:27,040
Speaker 16: nimble team. So a lot has happened, even in my

656
00:33:27,080 --> 00:33:30,000
Speaker 16: first one hundred days there, which has been fun. But

657
00:33:30,080 --> 00:33:32,360
Speaker 16: AI is definitely wanted a tailwinds so that we see for

658
00:33:32,400 --> 00:33:35,080
Speaker 16: our business going forward, along with some other things. Hybrid

659
00:33:35,200 --> 00:33:37,640
Speaker 16: work clearly is a tailwind for us as well as

660
00:33:38,080 --> 00:33:41,880
Speaker 16: gaming really mainstreaming and continuing to grow. But if I

661
00:33:41,920 --> 00:33:44,960
Speaker 16: look at AI, there's really three things we're doing. First

662
00:33:45,000 --> 00:33:48,320
Speaker 16: of all, like everyone else, it's helping internal productivity and

663
00:33:48,360 --> 00:33:51,120
Speaker 16: we're seeing, especially with our software engineers, some really good

664
00:33:51,120 --> 00:33:54,320
Speaker 16: productivity gains from using some of the new AI tools.

665
00:33:55,600 --> 00:33:57,920
Speaker 16: Then when we look at our products, two things into

666
00:33:57,920 --> 00:34:00,440
Speaker 16: software you just mentioned it. We just launched the new

667
00:34:00,760 --> 00:34:05,400
Speaker 16: Logy AI prompt builder, which is a shortcut to chat GPT.

668
00:34:06,320 --> 00:34:08,239
Speaker 16: You know, if you're a big user of chat GPT,

669
00:34:08,760 --> 00:34:10,800
Speaker 16: you have to go in and out, you're toggling between

670
00:34:10,840 --> 00:34:13,280
Speaker 16: what you're doing and chat GPT. This is a shortcut

671
00:34:13,400 --> 00:34:15,000
Speaker 16: so that you can stay in the flow, which is

672
00:34:15,080 --> 00:34:19,160
Speaker 16: really important for our heavy users again, the coders, and only.

673
00:34:19,000 --> 00:34:21,280
Speaker 4: Open a eyes chat GPT. What about the others?

674
00:34:21,360 --> 00:34:25,080
Speaker 16: Okay for now, but I'm sure more will follow. We're

675
00:34:25,080 --> 00:34:28,759
Speaker 16: a company who really partners with everyone, so more will follow. Yeah,

676
00:34:28,800 --> 00:34:31,440
Speaker 16: And then what I'm probably most excited about is actually

677
00:34:31,640 --> 00:34:35,680
Speaker 16: in the video and audio space, where we've for actually

678
00:34:35,680 --> 00:34:38,080
Speaker 16: for quite a while, have been using these large data

679
00:34:38,120 --> 00:34:42,120
Speaker 16: models to really step change the quality of audio and videos.

680
00:34:42,160 --> 00:34:46,800
Speaker 16: So maybe two quick examples. In headphones, our latest generation

681
00:34:46,960 --> 00:34:50,759
Speaker 16: of headphones does two way noise cancelations. So let's say

682
00:34:50,880 --> 00:34:53,000
Speaker 16: we're on the phone, I'm at an airport, You're wearing

683
00:34:53,040 --> 00:34:55,920
Speaker 16: the headphone, and of course it's super annoying because you

684
00:34:55,920 --> 00:34:58,440
Speaker 16: know you're hearing not just my voice, but every announcement

685
00:34:58,480 --> 00:35:03,160
Speaker 16: at that airport. New headphones, our new headphones do two

686
00:35:03,200 --> 00:35:06,760
Speaker 16: way noise cancelation on both sides. So now it's smart

687
00:35:06,840 --> 00:35:09,279
Speaker 16: enough things to the model to recognize my voice, but

688
00:35:09,400 --> 00:35:12,600
Speaker 16: to tune out everything else that's going on around me,

689
00:35:12,680 --> 00:35:15,440
Speaker 16: which really really step changes audio quality.

690
00:35:15,480 --> 00:35:16,000
Speaker 4: We love that.

691
00:35:17,120 --> 00:35:20,080
Speaker 16: On the video side, we just launched this new video

692
00:35:20,120 --> 00:35:24,279
Speaker 16: conferencing tool for offices called Site. It's a camera that

693
00:35:24,320 --> 00:35:27,560
Speaker 16: you set in a large meeting room. I'm sure you've

694
00:35:27,600 --> 00:35:29,320
Speaker 16: been in meetings. There's twelve of you on one side,

695
00:35:29,360 --> 00:35:31,160
Speaker 16: one poor guy on the other side on the screen.

696
00:35:31,200 --> 00:35:35,400
Speaker 16: He's of course left out. This acts like a intelligent

697
00:35:35,480 --> 00:35:39,120
Speaker 16: producer in the room. It swivels around to focus on

698
00:35:39,200 --> 00:35:42,680
Speaker 16: the right person. But again also audio, it swivels to

699
00:35:42,840 --> 00:35:45,759
Speaker 16: you when you're speaking, but not when you're opening a

700
00:35:45,800 --> 00:35:47,680
Speaker 16: packet of crisps, which is quite important.

701
00:35:49,800 --> 00:35:52,520
Speaker 2: I'm afraid I did go away.

702
00:35:52,560 --> 00:35:54,640
Speaker 3: No, really, I think we run out of time. But

703
00:35:54,760 --> 00:35:56,320
Speaker 3: what I was just going to say is like, gaming

704
00:35:56,400 --> 00:35:59,160
Speaker 3: still a thirty year business and as we reflected on,

705
00:35:59,239 --> 00:36:01,880
Speaker 3: it's really hard out there. Just ten seconds sum up

706
00:36:01,920 --> 00:36:02,520
Speaker 3: the environment.

707
00:36:02,880 --> 00:36:05,759
Speaker 16: Yeah, we think gaming is a real tailwind for US.

708
00:36:06,040 --> 00:36:08,560
Speaker 16: Gaming was up eight percent for US in the last quarter.

709
00:36:09,160 --> 00:36:10,680
Speaker 16: We think the future of gaming is really great.

710
00:36:12,239 --> 00:36:14,279
Speaker 4: Log Tech CEO had like a favor. We wish I

711
00:36:14,280 --> 00:36:15,839
Speaker 4: had more time with you. Thank you for stopping by

712
00:36:15,880 --> 00:36:16,560
Speaker 4: while you're on your In New.

713
00:36:16,560 --> 00:36:28,600
Speaker 3: York, ride sharing company Lift reported first quarter results and guidance.

714
00:36:28,640 --> 00:36:32,000
Speaker 3: The beat investors expectations really send me the shares of

715
00:36:32,040 --> 00:36:34,720
Speaker 3: the company higher. Joining us now is the Lift CEO

716
00:36:34,880 --> 00:36:37,239
Speaker 3: David Rischer on set in San Francisco. There was something

717
00:36:37,239 --> 00:36:39,759
Speaker 3: interesting that you said, which is you made improvement in

718
00:36:39,840 --> 00:36:43,080
Speaker 3: both rider retention and new riders, and you've made some

719
00:36:43,080 --> 00:36:46,600
Speaker 3: progress in Canada. But actually I wanted more specifics on

720
00:36:46,920 --> 00:36:48,640
Speaker 3: what you did to achieve that.

721
00:36:49,000 --> 00:36:51,560
Speaker 17: Yeah, so I'd break it down like this. First of all,

722
00:36:51,560 --> 00:36:53,440
Speaker 17: it's good to be here. The second of all, I

723
00:36:53,560 --> 00:36:55,359
Speaker 17: break it down like this. First you got to get

724
00:36:55,360 --> 00:36:58,080
Speaker 17: the basics. Rate we call it ride shair perfection. That's

725
00:36:58,080 --> 00:37:02,000
Speaker 17: all a pricing rate, paying drivers right, picking you up fast,

726
00:37:02,000 --> 00:37:03,960
Speaker 17: our ETA is that's what we call how fast we

727
00:37:04,000 --> 00:37:06,040
Speaker 17: pick you up are faster they've been in four years.

728
00:37:06,080 --> 00:37:08,440
Speaker 17: So those are the basics. Once you do that, then

729
00:37:08,480 --> 00:37:10,120
Speaker 17: you can build on top of that. Then you can

730
00:37:10,160 --> 00:37:12,600
Speaker 17: do things like innovations around how fast can.

731
00:37:12,480 --> 00:37:14,120
Speaker 1: We pick you up for the airport, for example.

732
00:37:14,200 --> 00:37:15,920
Speaker 17: One of my favorite example, I think last time you

733
00:37:15,920 --> 00:37:17,880
Speaker 17: and I talked, we had just rolled out this on

734
00:37:18,000 --> 00:37:21,239
Speaker 17: time pickup promise, and now less than one point five

735
00:37:21,320 --> 00:37:23,440
Speaker 17: percent of people are being picked up so late that

736
00:37:23,480 --> 00:37:24,840
Speaker 17: we have to give them the one hundred bucks. So

737
00:37:25,239 --> 00:37:27,880
Speaker 17: after the basics, then you innovate, and then you partner

738
00:37:27,920 --> 00:37:30,360
Speaker 17: with other people. We've got great partnerships with Chase, with

739
00:37:30,480 --> 00:37:32,640
Speaker 17: Delta and others. You put all those things together and

740
00:37:32,680 --> 00:37:34,400
Speaker 17: it's a great combination. It's work really well.

741
00:37:34,440 --> 00:37:36,960
Speaker 2: Oh, let's go in on the B to B partnerships, David,

742
00:37:37,040 --> 00:37:40,799
Speaker 2: Because I know that you are mobility first, but you

743
00:37:40,840 --> 00:37:42,440
Speaker 2: look at Uber and instacart yesterday.

744
00:37:42,480 --> 00:37:44,120
Speaker 4: What other partnerships do you have in mind?

745
00:37:45,239 --> 00:37:48,000
Speaker 17: So I probably won't be able to speculate on new partnerships,

746
00:37:48,040 --> 00:37:50,120
Speaker 17: but I can tell you this. You know, I spent

747
00:37:50,200 --> 00:37:52,440
Speaker 17: in my prior career a lot of time in Africa.

748
00:37:52,560 --> 00:37:54,680
Speaker 17: And now you're asking where's this going, But the answer

749
00:37:54,760 --> 00:37:56,920
Speaker 17: is in a lot of countries in Africa, there's this

750
00:37:57,000 --> 00:37:59,800
Speaker 17: great expression, if you want to go fast, you go alone,

751
00:38:00,000 --> 00:38:02,400
Speaker 17: but if you want to go far, you go together.

752
00:38:02,840 --> 00:38:04,400
Speaker 1: So you know, as I say.

753
00:38:04,360 --> 00:38:07,360
Speaker 17: Delta Amazon as a partner, we pick up some of

754
00:38:07,400 --> 00:38:10,120
Speaker 17: the folks at distribution centers linked in as a partner,

755
00:38:10,160 --> 00:38:13,000
Speaker 17: we actually they overran their parking lot when people came

756
00:38:13,040 --> 00:38:14,879
Speaker 17: back to work, and so we help people get back

757
00:38:14,880 --> 00:38:17,560
Speaker 17: to work. Delta sky Miles, of course you can get

758
00:38:17,560 --> 00:38:20,080
Speaker 17: sky miles, but also we help move their flight crews around,

759
00:38:20,239 --> 00:38:23,239
Speaker 17: particularly in early morning hours. These are partnerships that they're

760
00:38:23,400 --> 00:38:26,560
Speaker 17: Chase with Sapphire. They're really deep partnerships. And when you

761
00:38:26,600 --> 00:38:28,640
Speaker 17: really go deep with someone, you know, it's almost like

762
00:38:28,680 --> 00:38:31,160
Speaker 17: a relationship. You can find all sorts of amazing things to do.

763
00:38:31,400 --> 00:38:33,879
Speaker 3: Those are the groups of people you're moving And as

764
00:38:33,920 --> 00:38:35,680
Speaker 3: you know, I spend a lot of time thinking about

765
00:38:35,680 --> 00:38:38,640
Speaker 3: how people move from me to be I want to

766
00:38:38,680 --> 00:38:41,040
Speaker 3: go back to ROBOTAXI. Tesla will show us a robo

767
00:38:41,080 --> 00:38:45,000
Speaker 3: tax in August, and your competitor Uber has this relationship

768
00:38:45,000 --> 00:38:47,799
Speaker 3: with Weimo. I don't think you have a formal relationship.

769
00:38:48,080 --> 00:38:50,520
Speaker 3: But if Tesla comes to market, you must be thinking

770
00:38:50,960 --> 00:38:52,160
Speaker 3: about that long term.

771
00:38:52,960 --> 00:38:56,800
Speaker 17: Yes, but so first robotaxis or let's just say a

772
00:38:56,880 --> 00:38:58,399
Speaker 17: time of his vehicles are going to happen.

773
00:38:58,400 --> 00:39:00,680
Speaker 1: There's no question here in San Francisco. They're happening. You

774
00:39:00,680 --> 00:39:02,680
Speaker 1: see them on the street. But we have to think

775
00:39:02,719 --> 00:39:03,399
Speaker 1: about it this way.

776
00:39:03,680 --> 00:39:06,120
Speaker 17: For someone's got to make the tech, then someone's got

777
00:39:06,120 --> 00:39:08,399
Speaker 17: to build the car, then someone's got to own the car,

778
00:39:08,640 --> 00:39:10,480
Speaker 17: and someone's got to run the network. Right, these are

779
00:39:10,560 --> 00:39:13,440
Speaker 17: four different pieces of business that people have to do.

780
00:39:13,800 --> 00:39:16,359
Speaker 17: We run the network and it's a very expensive, very

781
00:39:16,360 --> 00:39:19,160
Speaker 17: expansive network that we run every single day, two million.

782
00:39:18,960 --> 00:39:19,520
Speaker 1: Rides a day.

783
00:39:19,840 --> 00:39:22,000
Speaker 17: Now, if we need to incorporate and of course we

784
00:39:22,040 --> 00:39:25,840
Speaker 17: will autonomous vehicles into that, that's great, that's fantastic. It'll increase,

785
00:39:26,000 --> 00:39:27,960
Speaker 17: you know, supply, and increase the number of different ways.

786
00:39:28,120 --> 00:39:31,200
Speaker 17: But I don't really look at an initiative like theirs

787
00:39:31,520 --> 00:39:33,959
Speaker 17: and think it words me. I think that's really interesting.

788
00:39:34,040 --> 00:39:36,120
Speaker 17: It's going to maybe help expand the market. And I

789
00:39:36,120 --> 00:39:38,080
Speaker 17: would say for them, gosh, that's a lot to take

790
00:39:38,120 --> 00:39:39,879
Speaker 17: on at once, and so you know, we'll see, we'll

791
00:39:39,880 --> 00:39:40,600
Speaker 17: see how that goes.

792
00:39:41,160 --> 00:39:44,360
Speaker 2: David, innovation was what you're just talking about. Would you

793
00:39:44,400 --> 00:39:48,319
Speaker 2: ever reconsider innovation in taking more than just people but

794
00:39:48,480 --> 00:39:49,680
Speaker 2: food but groceries.

795
00:39:51,080 --> 00:39:54,280
Speaker 17: You know, our real focus is on moving people around

796
00:39:54,320 --> 00:39:56,719
Speaker 17: and in specific getting them out of their house. And

797
00:39:56,719 --> 00:39:58,719
Speaker 17: this is where I get a little philosophical. If you

798
00:39:58,840 --> 00:40:01,480
Speaker 17: read any of this of articles about kind of the

799
00:40:01,760 --> 00:40:03,920
Speaker 17: health of our nation. We talk a lot about sort

800
00:40:03,920 --> 00:40:06,440
Speaker 17: of political divide, but there's also just a tremendous amount

801
00:40:06,440 --> 00:40:08,840
Speaker 17: of loneliness and people staying at home too much and

802
00:40:08,880 --> 00:40:11,120
Speaker 17: being disconnected from their friends and their family.

803
00:40:10,920 --> 00:40:11,399
Speaker 1: And so forth.

804
00:40:11,440 --> 00:40:13,720
Speaker 17: So I'd say that really is going to be our focus.

805
00:40:13,920 --> 00:40:15,799
Speaker 17: It doesn't mean that, of course, we also get people

806
00:40:15,800 --> 00:40:17,000
Speaker 17: out on bikes, you know.

807
00:40:16,920 --> 00:40:17,520
Speaker 1: I were just talking.

808
00:40:17,560 --> 00:40:19,240
Speaker 17: You've got a great bike system in New York among

809
00:40:19,239 --> 00:40:21,759
Speaker 17: other places, so that's important as well. But I really

810
00:40:21,800 --> 00:40:24,400
Speaker 17: think getting people out and about is really our focus,

811
00:40:24,440 --> 00:40:26,040
Speaker 17: and then we can partner for other things to the

812
00:40:26,080 --> 00:40:27,960
Speaker 17: extent that is important to customers.

813
00:40:28,120 --> 00:40:30,440
Speaker 3: David Our Bloomberg Intelligence, and this man Deep Singing and

814
00:40:30,480 --> 00:40:32,439
Speaker 3: I were going through your numbers and trying to see

815
00:40:32,480 --> 00:40:35,879
Speaker 3: if it proved you'd taken market share from Uber. Dara

816
00:40:35,960 --> 00:40:38,880
Speaker 3: kosh Rashahi is coming up next after we've gone off

817
00:40:39,120 --> 00:40:42,040
Speaker 3: on the next program with Bloomberg's Emily Chang. What's your

818
00:40:42,040 --> 00:40:44,440
Speaker 3: message for Dara in terms of whether he should be

819
00:40:44,480 --> 00:40:46,800
Speaker 3: looking over his shoulder in the progress you are making.

820
00:40:47,160 --> 00:40:48,040
Speaker 1: You know, it's so funny.

821
00:40:48,160 --> 00:40:49,840
Speaker 17: People love, of course, to talk about this sort of

822
00:40:49,920 --> 00:40:53,239
Speaker 17: head to head thing. I think our competition is people

823
00:40:53,280 --> 00:40:55,759
Speaker 17: staying at home. That's our competition. I want more people out,

824
00:40:55,800 --> 00:40:56,960
Speaker 17: I want them connecting.

825
00:40:56,560 --> 00:40:57,200
Speaker 1: With other folks.

826
00:40:57,320 --> 00:40:59,719
Speaker 17: I think it's just a much more interesting way to

827
00:40:59,800 --> 00:41:01,600
Speaker 17: run of business than to sort of always focus on

828
00:41:01,640 --> 00:41:02,200
Speaker 17: your competitor.

829
00:41:02,360 --> 00:41:02,520
Speaker 1: You know.

830
00:41:02,600 --> 00:41:05,000
Speaker 17: Look, they'll go through their ups and downs in their quarters.

831
00:41:05,160 --> 00:41:07,480
Speaker 17: So he's got a loom in his mind. It's fine

832
00:41:07,520 --> 00:41:09,040
Speaker 17: ask him about all the different things he's got in

833
00:41:09,040 --> 00:41:10,640
Speaker 17: his mind, and we're just going to focus on our

834
00:41:11,520 --> 00:41:12,760
Speaker 17: riders and drivers.

835
00:41:13,480 --> 00:41:14,120
Speaker 4: On your mind.

836
00:41:14,520 --> 00:41:18,240
Speaker 2: Gen Z, women, corporate travelers, who's getting in your cars,

837
00:41:18,239 --> 00:41:19,120
Speaker 2: who's riding your bike?

838
00:41:19,239 --> 00:41:21,919
Speaker 17: David, Well, so a lot of women are I'm glad

839
00:41:21,960 --> 00:41:23,840
Speaker 17: you brought that up. Of course, we have women plus Connect,

840
00:41:23,880 --> 00:41:26,320
Speaker 17: which I'm so so proud of. One of the great

841
00:41:26,400 --> 00:41:28,440
Speaker 17: quotes I heard from a friend recently is when he

842
00:41:28,480 --> 00:41:30,680
Speaker 17: said he was actually talking to his girlfriend and he said,

843
00:41:30,680 --> 00:41:33,480
Speaker 17: why do you like this women plus connect rider driver

844
00:41:33,520 --> 00:41:35,760
Speaker 17: connection on Lift and she said, look, I can finally

845
00:41:35,800 --> 00:41:38,160
Speaker 17: take a nap in Ride Shair. I can finally take

846
00:41:38,200 --> 00:41:40,440
Speaker 17: a nap, which I think is so profound. We've had

847
00:41:40,480 --> 00:41:43,319
Speaker 17: something like twenty thousand new women joined the platform on

848
00:41:43,360 --> 00:41:47,040
Speaker 17: the driver side just since we've started the program.

849
00:41:46,719 --> 00:41:49,400
Speaker 1: So super important. I'll tell you another thing that's really interesting.

850
00:41:49,680 --> 00:41:50,120
Speaker 1: We're seeing.

851
00:41:50,160 --> 00:41:52,600
Speaker 17: Of course, commute is happening, but also party time. People

852
00:41:52,640 --> 00:41:54,839
Speaker 17: really are getting out. It's after nine or after five

853
00:41:54,840 --> 00:41:56,600
Speaker 17: o'clock and it's going great.

854
00:41:56,840 --> 00:41:58,480
Speaker 4: I am here for party time.

855
00:41:58,640 --> 00:42:02,320
Speaker 2: David Richer, CEO, thank you so much for your time today.

856
00:42:02,440 --> 00:42:04,680
Speaker 4: We appreciate it. Meanwhile, that does it for this edition

857
00:42:04,680 --> 00:42:07,560
Speaker 4: of Bloomberg Technology Ed. We've got a party tomorrow, a.

858
00:42:07,560 --> 00:42:10,439
Speaker 3: Big party for Bloomberg Technology Live, but a big show

859
00:42:10,480 --> 00:42:13,560
Speaker 3: to recap. Check out the pod, putting it on Apple, Spotify.

860
00:42:13,920 --> 00:42:16,120
Speaker 3: iHeart and of course all the Bloomberg platform's big thank

861
00:42:16,160 --> 00:42:18,480
Speaker 3: you to everyone that listens to their podcast and the

862
00:42:18,480 --> 00:42:20,960
Speaker 3: way to work maybe in a lift or Reneuber from

863
00:42:21,040 --> 00:42:22,800
Speaker 3: San Francisco, New York. This is Bloomberg