1 00:00:00,800 --> 00:00:04,040 Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside 2 00:00:04,040 --> 00:00:06,920 Speaker 1: my co host Matt Miller. Every business day, we bring 3 00:00:06,960 --> 00:00:11,520 Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along 4 00:00:11,560 --> 00:00:15,520 Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast 5 00:00:15,560 --> 00:00:18,479 Speaker 1: called Apple Podcasts or wherever you listen to podcasts, and 6 00:00:18,480 --> 00:00:22,639 Speaker 1: at Bloomberg dot com slash podcast. Matt, I got a 7 00:00:22,680 --> 00:00:24,520 Speaker 1: problem with our next guest. I'm just gonna lay it 8 00:00:24,560 --> 00:00:27,200 Speaker 1: out there. He is a big time University of North 9 00:00:27,240 --> 00:00:30,360 Speaker 1: Carolina Chapel Hill guy. But we we beat up on 10 00:00:30,400 --> 00:00:32,960 Speaker 1: them last weekend in Chapel Hill, so I guess we 11 00:00:33,000 --> 00:00:35,760 Speaker 1: can deal with it. Jake Brice and Managing Director Chief 12 00:00:35,800 --> 00:00:38,400 Speaker 1: Economists at Wells Fargo. Don't put up with him, Jake. 13 00:00:39,560 --> 00:00:41,520 Speaker 1: You know it's gonna be so sweet when we beat 14 00:00:41,560 --> 00:00:43,640 Speaker 1: you guys in Carolin. All right, we'll see about that. 15 00:00:43,640 --> 00:00:45,839 Speaker 1: That'll be fun, all right, Jay, Um, you know, we 16 00:00:45,960 --> 00:00:48,360 Speaker 1: got a lot of inflation out there, whether you see 17 00:00:48,360 --> 00:00:50,640 Speaker 1: it at the gas pump, you see it at the supermarket. 18 00:00:51,560 --> 00:00:54,240 Speaker 1: Is this something that could really be a problem for 19 00:00:54,280 --> 00:01:00,880 Speaker 1: this economy? You know? So you know, I think inflation 20 00:01:01,000 --> 00:01:04,280 Speaker 1: is going to be stickier than many people, I think 21 00:01:04,319 --> 00:01:07,080 Speaker 1: appreciate uh, this year, you know, by the end So 22 00:01:07,280 --> 00:01:09,480 Speaker 1: right now, if you look at the overall rate of 23 00:01:09,560 --> 00:01:12,800 Speaker 1: CPI inflation, it's running about seven percent or so, we 24 00:01:12,880 --> 00:01:15,480 Speaker 1: get a print tomorrow, we think by the end of 25 00:01:15,480 --> 00:01:17,640 Speaker 1: the year it will still be running close before per 26 00:01:17,640 --> 00:01:19,559 Speaker 1: cent or so. I mean, that's just that's a high 27 00:01:19,600 --> 00:01:22,319 Speaker 1: number for most people. So I don't think that this 28 00:01:22,400 --> 00:01:26,399 Speaker 1: is we're on the cusp of the seventy seven in 29 00:01:26,480 --> 00:01:29,360 Speaker 1: terms of you're looking at double digit growth rates and inflation. 30 00:01:29,440 --> 00:01:32,679 Speaker 1: But I do believe it's going to be higher and 31 00:01:32,720 --> 00:01:35,880 Speaker 1: that then the problem comes in is how does the 32 00:01:35,920 --> 00:01:38,240 Speaker 1: Federal Reserve react to that? Right, if they really start 33 00:01:38,240 --> 00:01:40,800 Speaker 1: to clamp down on the brakes, you potentially could have 34 00:01:40,840 --> 00:01:44,080 Speaker 1: a big slowdown later this year going into next year. 35 00:01:44,680 --> 00:01:47,640 Speaker 1: So how hard do you think they will step on 36 00:01:47,680 --> 00:01:53,400 Speaker 1: the brakes? Because this Fed seemed very dovish before UM J. 37 00:01:53,560 --> 00:01:59,000 Speaker 1: Powell's reconfirmation a renomination, and all of a sudden, they 38 00:01:59,040 --> 00:02:02,600 Speaker 1: seem pretty hawkish, even the doves, even the candidates that 39 00:02:02,640 --> 00:02:06,600 Speaker 1: the left wanted to replace Powell, seem pretty hawk ish 40 00:02:06,640 --> 00:02:09,960 Speaker 1: on this inflation. Now, that's that's right, They're all singing 41 00:02:10,000 --> 00:02:12,760 Speaker 1: from the same hypno right now, although I would point 42 00:02:12,760 --> 00:02:16,880 Speaker 1: out that the hawkish members in recent weeks have kind of, 43 00:02:17,160 --> 00:02:19,280 Speaker 1: you know, dialed it back a little bit. I mean, 44 00:02:19,320 --> 00:02:21,520 Speaker 1: I think they're even recognizing that we don't need to 45 00:02:21,520 --> 00:02:23,720 Speaker 1: really step on or want to step on the breaks here. 46 00:02:24,040 --> 00:02:26,600 Speaker 1: That said, I mean, we're looking for the markets more 47 00:02:26,680 --> 00:02:29,280 Speaker 1: or less priced for five rate hikes over the course 48 00:02:29,320 --> 00:02:31,639 Speaker 1: of this year. We also think the FED will take 49 00:02:31,720 --> 00:02:36,600 Speaker 1: steps to start to unwind its balance sheet probably in 50 00:02:36,600 --> 00:02:39,000 Speaker 1: the middle of the year. That's a form of tightening 51 00:02:39,040 --> 00:02:42,240 Speaker 1: as well. And so I mean there is you know, 52 00:02:42,280 --> 00:02:46,240 Speaker 1: there there's tightening coming up. That said, the underlying fundamentals 53 00:02:46,240 --> 00:02:49,080 Speaker 1: of the economy, and you look at balance sheets of households, 54 00:02:49,200 --> 00:02:53,480 Speaker 1: you look at balance sheets of individuals, uh or or businesses. 55 00:02:53,680 --> 00:02:56,800 Speaker 1: They're all pretty solid right now. So the underlying fundamentals 56 00:02:56,800 --> 00:02:59,120 Speaker 1: of the economy remade pretty good it should, you know, 57 00:02:59,120 --> 00:03:04,320 Speaker 1: and pretty inducive to I'll call it solid growth this year, 58 00:03:04,400 --> 00:03:06,520 Speaker 1: you know, nothing like we saw last year. But we 59 00:03:06,560 --> 00:03:08,359 Speaker 1: also don't think we're looking at a you know, a 60 00:03:08,480 --> 00:03:13,119 Speaker 1: recession in the foreseeable future. By the way, ju Um, 61 00:03:13,200 --> 00:03:17,720 Speaker 1: expect inflation to continue through not at seven percent levels 62 00:03:17,760 --> 00:03:21,000 Speaker 1: you just said, but maybe four percent, that's still twice UM. 63 00:03:21,160 --> 00:03:25,200 Speaker 1: The FED target black Rock a couple of days ago 64 00:03:25,280 --> 00:03:29,160 Speaker 1: put out a research report saying the problem is that 65 00:03:29,200 --> 00:03:33,400 Speaker 1: people are buying more stuff. I love dope stuff. My 66 00:03:33,440 --> 00:03:37,080 Speaker 1: wife loves experiences and services. She would rather go on 67 00:03:37,080 --> 00:03:39,120 Speaker 1: a trip and get a massage. I would rather buy 68 00:03:40,000 --> 00:03:43,880 Speaker 1: a motorcycle or a car. UM is the issue that 69 00:03:43,960 --> 00:03:47,720 Speaker 1: more and more people, through the pandemic UH put away 70 00:03:47,760 --> 00:03:54,760 Speaker 1: their UM services needs and replaced it with stuff. Yeah, 71 00:03:54,880 --> 00:03:57,520 Speaker 1: so with you know, so what has been really strong 72 00:03:57,800 --> 00:04:01,120 Speaker 1: has been good spending and so and look at the 73 00:04:01,240 --> 00:04:05,800 Speaker 1: CPI again. It's euryear rate of seven percent right now. 74 00:04:06,280 --> 00:04:09,800 Speaker 1: Roughly five percentage points of that seven is coming from 75 00:04:09,840 --> 00:04:14,120 Speaker 1: good so two thirds is coming from goods. And we 76 00:04:14,200 --> 00:04:17,520 Speaker 1: only spend a sermat of our money on goods, So 77 00:04:17,640 --> 00:04:20,799 Speaker 1: goods are punching well above their fighting way right now. Now. 78 00:04:21,360 --> 00:04:24,279 Speaker 1: You know, there's also been a probably a fair amount 79 00:04:24,360 --> 00:04:28,040 Speaker 1: of good spending that has been pulled forward, right I mean, 80 00:04:28,120 --> 00:04:30,600 Speaker 1: you know, during the pandemic, everyone went out and they 81 00:04:30,640 --> 00:04:33,119 Speaker 1: bought a trampoline or a basketball groups for the kids. 82 00:04:33,360 --> 00:04:35,320 Speaker 1: We don't have to replace that every year. You know, 83 00:04:35,360 --> 00:04:37,599 Speaker 1: the same thing for cars and things of that nature. 84 00:04:37,680 --> 00:04:40,600 Speaker 1: So as you go forward, which we're you know, what 85 00:04:40,600 --> 00:04:42,559 Speaker 1: we expect to see and we're kind of actually seeing 86 00:04:42,600 --> 00:04:46,280 Speaker 1: it is a pivot from good spending that should slow down. 87 00:04:46,360 --> 00:04:50,600 Speaker 1: The supply chains will become unclogged, and so you know 88 00:04:50,720 --> 00:04:53,559 Speaker 1: that the impulse to inflation coming from goods should start 89 00:04:53,560 --> 00:04:55,760 Speaker 1: to cool off a little bit. But we still do 90 00:04:55,920 --> 00:05:00,599 Speaker 1: have some pipeline inflationary pressures in terms of services coming through, 91 00:05:00,880 --> 00:05:02,720 Speaker 1: and so that's one of the reasons why we think 92 00:05:02,760 --> 00:05:05,840 Speaker 1: inflation is going to remain elevated. You know, again, I 93 00:05:05,839 --> 00:05:08,280 Speaker 1: don't think it's going to go up significantly from here. 94 00:05:08,360 --> 00:05:10,520 Speaker 1: We're not. I don't think we're going from seven percent 95 00:05:10,600 --> 00:05:13,280 Speaker 1: to ten percent. But you know, at the end of 96 00:05:13,279 --> 00:05:15,520 Speaker 1: the year, if you're still running four percent, that's still 97 00:05:15,600 --> 00:05:18,160 Speaker 1: kind of hot for many folks. Jay, what's the risk 98 00:05:18,240 --> 00:05:21,280 Speaker 1: that our federal Reserve makes a mistake here and make 99 00:05:21,240 --> 00:05:23,560 Speaker 1: it just goes too fast, too far, whether it's a 100 00:05:23,560 --> 00:05:26,440 Speaker 1: fifty rate hike in March, or whether the the tightening 101 00:05:26,480 --> 00:05:28,560 Speaker 1: is more aggressive than the market thinks. It seems like 102 00:05:28,600 --> 00:05:31,120 Speaker 1: they've been telegraphing things pretty well. But what's the chance 103 00:05:31,160 --> 00:05:35,320 Speaker 1: of a mistake. You know, it's not insignificant. Um. You 104 00:05:35,360 --> 00:05:37,640 Speaker 1: know the problem. The problem is when you start to move, 105 00:05:37,680 --> 00:05:40,800 Speaker 1: and when the Fed moves. Historically, when it moves, it 106 00:05:40,839 --> 00:05:45,480 Speaker 1: continues to move in the same direction for a while. Okay, Um, 107 00:05:45,520 --> 00:05:47,640 Speaker 1: you know, so we don't think we're going to see 108 00:05:47,640 --> 00:05:49,560 Speaker 1: a fifty basis on rate hike in March, but we 109 00:05:49,560 --> 00:05:51,719 Speaker 1: think we'll see twenty five in March, twenty five and 110 00:05:51,960 --> 00:05:54,279 Speaker 1: twenty five in June, and then start to wind down 111 00:05:54,279 --> 00:05:57,440 Speaker 1: the balance she July. You know. The issue is that 112 00:05:57,760 --> 00:06:01,160 Speaker 1: it takes a while for that policy heightening to actually 113 00:06:01,160 --> 00:06:04,200 Speaker 1: start to show up in the economic data. And so 114 00:06:04,560 --> 00:06:06,919 Speaker 1: whenever they start to move, you know, in a in 115 00:06:07,000 --> 00:06:09,599 Speaker 1: a tightening sort of direction, there's always going to be 116 00:06:09,640 --> 00:06:12,640 Speaker 1: the rest that they potentially could move um too fast 117 00:06:12,920 --> 00:06:15,160 Speaker 1: now you know, you know, forceline, the market does tend 118 00:06:15,160 --> 00:06:18,040 Speaker 1: to send signals, um. You know, if you know, if 119 00:06:18,040 --> 00:06:19,680 Speaker 1: they do start to move a little too fast with 120 00:06:19,800 --> 00:06:23,160 Speaker 1: the stock market, probably is gonna wabble bond yields. Uh, 121 00:06:23,320 --> 00:06:25,640 Speaker 1: you know, you could get a potentially inverted yield could 122 00:06:26,200 --> 00:06:29,479 Speaker 1: in that And you know, so the Center Reserve does 123 00:06:29,560 --> 00:06:32,920 Speaker 1: pay attention to the signals that the market is sending 124 00:06:32,960 --> 00:06:35,359 Speaker 1: out and so all right, we'll keep it saying that, 125 00:06:35,720 --> 00:06:37,640 Speaker 1: all right, Jay, thank you so much for joining us. 126 00:06:37,839 --> 00:06:41,680 Speaker 1: Jay Bryson, Managing Director, Chief Economists for Wells Fargo, and 127 00:06:41,800 --> 00:06:44,440 Speaker 1: Jay knows that I root for Duke and for whoever 128 00:06:44,560 --> 00:06:47,440 Speaker 1: is playing Carolina, but he's been pretty well there for 129 00:06:47,640 --> 00:06:54,720 Speaker 1: Carolina and grad J Brison Walls Fargo. Let's continue our 130 00:06:54,720 --> 00:06:58,120 Speaker 1: discussion and the gaming space, this time on the hardware side. 131 00:06:58,120 --> 00:07:00,600 Speaker 1: We're joined by Andy Paul CEO and founder. Of course, 132 00:07:00,640 --> 00:07:04,520 Speaker 1: They're Gaming That is a publicly treated company on nastack 133 00:07:04,680 --> 00:07:08,080 Speaker 1: c R. S R is the ticker. It's about a 134 00:07:08,080 --> 00:07:10,520 Speaker 1: two billion dollar market cap. Stock is pretty flat for 135 00:07:10,560 --> 00:07:12,960 Speaker 1: the year, down about over the trailing twelve months. They 136 00:07:12,960 --> 00:07:14,640 Speaker 1: reported some numbers last night, a little bit better and 137 00:07:14,640 --> 00:07:17,520 Speaker 1: expected on the EPs line. Let's get the latest. Andy, 138 00:07:17,560 --> 00:07:19,400 Speaker 1: thanks so much for joining us here. What's the key 139 00:07:19,440 --> 00:07:24,440 Speaker 1: takeaway from the quarter that you reported last night? Well, 140 00:07:24,480 --> 00:07:27,160 Speaker 1: as you mentioned, uh, it was a great quarter. We're 141 00:07:27,200 --> 00:07:30,240 Speaker 1: pretty happy with the results. And um, I think what 142 00:07:30,280 --> 00:07:34,480 Speaker 1: everyone's starting to understand now is that because of the 143 00:07:34,560 --> 00:07:39,320 Speaker 1: surgeon activity from gamers during the shelter at home period, 144 00:07:39,920 --> 00:07:43,320 Speaker 1: But now we have to compare a post pandemic quarter 145 00:07:43,640 --> 00:07:46,600 Speaker 1: which was Q four it's just just finished. Compared that 146 00:07:46,720 --> 00:07:52,720 Speaker 1: with Q four and that represented about fifty growth, So 147 00:07:53,040 --> 00:07:55,960 Speaker 1: we're pretty pleased with that. Yeah, listen, I mean, you 148 00:07:56,680 --> 00:07:58,960 Speaker 1: can't do anything about the fact that your business got 149 00:07:58,960 --> 00:08:02,400 Speaker 1: a huge boost during lockdown. We were just talking about 150 00:08:02,400 --> 00:08:06,000 Speaker 1: other companies that in a way faced the same curse, 151 00:08:06,080 --> 00:08:09,320 Speaker 1: because when that lockdown lifts, UM, you don't have the 152 00:08:09,360 --> 00:08:12,880 Speaker 1: same kind of tailwind behind you that you that you 153 00:08:13,040 --> 00:08:15,920 Speaker 1: all of a sudden did what what can you do 154 00:08:16,000 --> 00:08:17,960 Speaker 1: or what did you do during that period that you 155 00:08:18,000 --> 00:08:22,680 Speaker 1: think is really important? Well, firstly, UM, let me just 156 00:08:22,680 --> 00:08:26,440 Speaker 1: correct one thing, because the nice thing about people that 157 00:08:26,600 --> 00:08:30,440 Speaker 1: buy UM gear for any kind of sport, including gaming, 158 00:08:30,520 --> 00:08:33,040 Speaker 1: is as a pretty short refresh cycle, and so all 159 00:08:33,080 --> 00:08:36,440 Speaker 1: the new gamers that started to buy a gear in 160 00:08:37,720 --> 00:08:41,800 Speaker 1: the first one UM, you know, we'll look at about 161 00:08:41,800 --> 00:08:44,559 Speaker 1: a two to four year refresh cycle. So we'll see 162 00:08:44,679 --> 00:08:50,000 Speaker 1: a repeat of this in uh, you know late So 163 00:08:50,040 --> 00:08:52,800 Speaker 1: that's what we're pretty excited about. Now. What we did 164 00:08:52,960 --> 00:08:58,240 Speaker 1: during that surge of activity was obviously scramble against massive 165 00:08:58,280 --> 00:09:02,440 Speaker 1: supply chaining issues and so you know, most of the 166 00:09:02,440 --> 00:09:05,680 Speaker 1: effort was around the operations of just getting stuff onto 167 00:09:05,679 --> 00:09:08,480 Speaker 1: the water and into the country, as you know, massive 168 00:09:08,920 --> 00:09:12,920 Speaker 1: increases in lead times of costs from containershipments from as 169 00:09:13,240 --> 00:09:15,439 Speaker 1: I want to get back to the supply chain. But 170 00:09:16,120 --> 00:09:19,800 Speaker 1: with all due respect, I have to say, even as 171 00:09:19,840 --> 00:09:23,200 Speaker 1: someone who spends thousands of dollars playing video games and 172 00:09:23,240 --> 00:09:26,839 Speaker 1: waste countless hours, I don't understand how can you call 173 00:09:26,880 --> 00:09:30,280 Speaker 1: it a sport. I mean I will sit there with 174 00:09:30,360 --> 00:09:33,280 Speaker 1: the full bag of Doritos in a six pack playing 175 00:09:33,360 --> 00:09:35,800 Speaker 1: Call of Duty and I don't feel like I worked 176 00:09:35,840 --> 00:09:39,199 Speaker 1: out much. You know, well yeah, maybe maybe not in 177 00:09:39,240 --> 00:09:41,719 Speaker 1: your in your physical body. But here's the interesting thing 178 00:09:41,720 --> 00:09:44,319 Speaker 1: that is making it more like sports. You know, everyone 179 00:09:44,400 --> 00:09:47,240 Speaker 1: started to talk now about metaverse and what the options are, 180 00:09:47,360 --> 00:09:50,640 Speaker 1: what the opportunities are in there. And what's clear to 181 00:09:50,679 --> 00:09:55,320 Speaker 1: me is that most sports involve social interaction. So if 182 00:09:55,320 --> 00:09:57,120 Speaker 1: you think about any sport you do, whether you get 183 00:09:57,160 --> 00:09:59,560 Speaker 1: mountain biking or skiing with friends, there's a lot of 184 00:09:59,559 --> 00:10:02,080 Speaker 1: social action, probably more time than they actually spent on 185 00:10:02,120 --> 00:10:05,320 Speaker 1: the sport. And that's what we're starting to see gaming 186 00:10:05,360 --> 00:10:08,600 Speaker 1: turn into. And so you see these platforms like Roadblocks 187 00:10:08,720 --> 00:10:12,520 Speaker 1: like Fortnite, what people are spending as much time socializing 188 00:10:12,520 --> 00:10:15,320 Speaker 1: with each other as they are. You know, playing the 189 00:10:15,480 --> 00:10:17,760 Speaker 1: playing the game. So I think that's what we've got 190 00:10:17,760 --> 00:10:20,960 Speaker 1: to look forward to. So, you know, Mark Zuckerberg has 191 00:10:21,000 --> 00:10:23,559 Speaker 1: really kind of raised the bar in terms of awareness 192 00:10:23,679 --> 00:10:26,840 Speaker 1: on the metaverse, and I think I'm just starting to 193 00:10:26,920 --> 00:10:29,280 Speaker 1: kind of come to grips of what that could be, 194 00:10:29,480 --> 00:10:32,760 Speaker 1: what that could look like. Um, but but I do 195 00:10:32,840 --> 00:10:35,079 Speaker 1: get the gaming aspect. How do you guys think about 196 00:10:35,200 --> 00:10:37,720 Speaker 1: the metaverse as a you know, a's a growth driver 197 00:10:37,800 --> 00:10:40,760 Speaker 1: for just gaming in general. Yeah, so I think I 198 00:10:40,800 --> 00:10:42,760 Speaker 1: think it's a trend that's already happening. I mean, I 199 00:10:42,800 --> 00:10:45,560 Speaker 1: know Mark's coined the latest label, but but there's a 200 00:10:45,559 --> 00:10:47,560 Speaker 1: growth trend that's been going on for a while. Um, 201 00:10:47,600 --> 00:10:49,520 Speaker 1: and this was you know, now we've got the hindsight 202 00:10:49,679 --> 00:10:52,240 Speaker 1: it should have been expected that, um, you know, people 203 00:10:52,240 --> 00:10:54,280 Speaker 1: would want to spend a lot of time, you know, 204 00:10:54,440 --> 00:10:56,360 Speaker 1: with each other in a social environment. Now, the good 205 00:10:56,360 --> 00:10:59,320 Speaker 1: thing for us is that any time spent in recorded 206 00:10:59,360 --> 00:11:03,440 Speaker 1: the metaverse, this conversation, But anytime you spend interactive entertainment 207 00:11:03,440 --> 00:11:06,960 Speaker 1: through the Internet, you need to buy gear to do that. 208 00:11:07,120 --> 00:11:10,920 Speaker 1: So you need a platform, whether it's a constantal game PC, 209 00:11:11,080 --> 00:11:15,559 Speaker 1: and you need keyboards, mice, headsets, controllers. Um, so it's 210 00:11:15,600 --> 00:11:19,160 Speaker 1: more people spend more time, then we would expect to 211 00:11:19,240 --> 00:11:22,120 Speaker 1: continue to send more, sell more gear. Well, what's your 212 00:11:22,320 --> 00:11:27,599 Speaker 1: expectation for how we uh live in the metaverse and 213 00:11:28,360 --> 00:11:33,120 Speaker 1: in the future. I mean, typically people think UM VR 214 00:11:33,240 --> 00:11:37,080 Speaker 1: headset and I just can't buy into that. I would 215 00:11:37,200 --> 00:11:40,560 Speaker 1: much prefer to be in a room with you know, 216 00:11:40,640 --> 00:11:44,000 Speaker 1: our all four walls or monitors or something different than 217 00:11:44,040 --> 00:11:47,280 Speaker 1: a VR headset. But how does it look to you? Yeah, 218 00:11:47,360 --> 00:11:49,439 Speaker 1: well that's true. I can't imagine people are gonna spend 219 00:11:49,480 --> 00:11:51,360 Speaker 1: a lot of time walking around with big, heavy goggles 220 00:11:51,360 --> 00:11:55,000 Speaker 1: on them, So I think that that part of it, um, 221 00:11:55,040 --> 00:11:59,880 Speaker 1: you know, in terms of the virtual UM aspect, I 222 00:12:00,000 --> 00:12:02,040 Speaker 1: think he's more like everyone I know is talking about. 223 00:12:02,080 --> 00:12:05,400 Speaker 1: They are augmented reality rather than virtual reality, which you 224 00:12:05,440 --> 00:12:08,920 Speaker 1: can do with just some some fairly lightweight glasses. But 225 00:12:09,040 --> 00:12:10,599 Speaker 1: I think the important thing is not so much of 226 00:12:10,640 --> 00:12:13,800 Speaker 1: that aspect, but the fact that, you know, people are 227 00:12:13,800 --> 00:12:16,160 Speaker 1: gonna live spend a lot of time in a virtual world, 228 00:12:16,600 --> 00:12:20,520 Speaker 1: and they're gonna want to have a digital personal, digital personality, 229 00:12:20,600 --> 00:12:22,520 Speaker 1: but in many ways it's a little different from their 230 00:12:22,520 --> 00:12:25,079 Speaker 1: physical personality. And that's why I think a lot of 231 00:12:25,120 --> 00:12:28,959 Speaker 1: the opportunities are in terms of um, you know, how 232 00:12:29,000 --> 00:12:32,199 Speaker 1: people acquire those digital personalities. You should see my character 233 00:12:32,280 --> 00:12:35,600 Speaker 1: and red dead redemption. I have no idea where he's awesome, 234 00:12:36,240 --> 00:12:39,960 Speaker 1: he's better than me? Um, does you have a name? 235 00:12:41,360 --> 00:12:44,960 Speaker 1: And Andy? Let's get back to the day to day 236 00:12:45,640 --> 00:12:50,040 Speaker 1: boring business of UM running your company. Uh, not that 237 00:12:50,080 --> 00:12:52,120 Speaker 1: it's boring, but you know, the supply chain issues have 238 00:12:52,240 --> 00:12:55,720 Speaker 1: been probably frustrating, let's put it that way. Do you 239 00:12:55,800 --> 00:12:59,400 Speaker 1: see them alleviating now? I mean, um in you know, 240 00:12:59,480 --> 00:13:03,120 Speaker 1: post endemic cours their are you able to get your 241 00:13:03,120 --> 00:13:09,920 Speaker 1: hands on materials and chips faster better? Yeah? Yeah? So, UM, 242 00:13:09,960 --> 00:13:12,200 Speaker 1: I think that there's the several parts of this right. 243 00:13:12,280 --> 00:13:14,520 Speaker 1: One is the semiic nup to shortage, and that's certainly 244 00:13:14,520 --> 00:13:18,000 Speaker 1: affected a lot of our higher end, more complex products 245 00:13:18,160 --> 00:13:23,280 Speaker 1: that we've largely taken care of by just adjusting inventory. Um. 246 00:13:23,320 --> 00:13:25,720 Speaker 1: And so that that you know, in finding alternate supplieres 247 00:13:25,720 --> 00:13:29,360 Speaker 1: and massive thing UM. So that's not really an issue anymore. 248 00:13:29,400 --> 00:13:33,360 Speaker 1: The bigger issue is that container costs, which used to 249 00:13:33,400 --> 00:13:35,959 Speaker 1: be sort of a few years ago three thousand dollars 250 00:13:36,040 --> 00:13:38,680 Speaker 1: to bring a container from Astion to the US, is 251 00:13:38,760 --> 00:13:44,400 Speaker 1: now two dollars, so when you've got some and quite honestly, 252 00:13:44,440 --> 00:13:47,400 Speaker 1: there's no reason for that. Um. I mean I look 253 00:13:47,440 --> 00:13:49,160 Speaker 1: at this and I think, okay, either those prices are 254 00:13:49,160 --> 00:13:52,319 Speaker 1: going to go down or every private equery company is 255 00:13:52,360 --> 00:13:56,160 Speaker 1: going to start investing in container companies. So we know 256 00:13:56,280 --> 00:13:59,000 Speaker 1: that's going to normalize. We hope we're going to see 257 00:13:59,040 --> 00:14:02,400 Speaker 1: more of that this year. Uh, there's other issues that 258 00:14:02,440 --> 00:14:05,520 Speaker 1: are related to not just cost, but you know, the 259 00:14:06,120 --> 00:14:11,920 Speaker 1: COVID situation, especially recently with Omicron, has caused a massive 260 00:14:11,960 --> 00:14:15,240 Speaker 1: shortage of labor, and so the big hold up now 261 00:14:15,280 --> 00:14:17,960 Speaker 1: in terms of time, you know, it doesn't take any 262 00:14:18,000 --> 00:14:21,520 Speaker 1: longer for ships to go across the ocean, but getting unloaded, 263 00:14:21,560 --> 00:14:24,360 Speaker 1: getting onto trucks, getting them drivers to take them too, 264 00:14:25,280 --> 00:14:27,240 Speaker 1: hubs and stores, that's the biggest issue we have at 265 00:14:27,240 --> 00:14:29,120 Speaker 1: the moment. All right, Andy, thank you so much for 266 00:14:29,200 --> 00:14:31,400 Speaker 1: joining us. I really appreciate your time and you Paul 267 00:14:31,480 --> 00:14:37,400 Speaker 1: CEO and founder. Of course they're gaming all right. You know, 268 00:14:37,560 --> 00:14:39,640 Speaker 1: before we got the SMP up one point three, it 269 00:14:39,680 --> 00:14:41,920 Speaker 1: looks like it's just another those buy on the dips. 270 00:14:41,960 --> 00:14:45,320 Speaker 1: We had the SMP down around you know, and here 271 00:14:45,320 --> 00:14:47,800 Speaker 1: we are making moves higher for you know the last 272 00:14:47,840 --> 00:14:50,840 Speaker 1: several days. Let's bring in somebody who does this stuff 273 00:14:50,880 --> 00:14:54,160 Speaker 1: for a living, Guy Davis, Managing director and portfolio manager 274 00:14:54,440 --> 00:14:59,040 Speaker 1: for g c I Investors. Guy, you know, maybe maybe 275 00:14:59,040 --> 00:15:01,120 Speaker 1: I'm just getting lazy. I just buy the dips and 276 00:15:01,160 --> 00:15:03,120 Speaker 1: I don't think much more than that. What are you 277 00:15:03,160 --> 00:15:06,960 Speaker 1: seeing in these markets? I had been morning everyone, Thanks 278 00:15:07,000 --> 00:15:09,440 Speaker 1: for having me. Um. Certainly, yeah, I would say we've 279 00:15:09,480 --> 00:15:11,920 Speaker 1: been in a situation for quite some period of time 280 00:15:11,960 --> 00:15:16,040 Speaker 1: where the buy the dip mantra continues to hold. I 281 00:15:16,040 --> 00:15:17,840 Speaker 1: know there are some people saying that, you know, the 282 00:15:17,840 --> 00:15:21,440 Speaker 1: FED puts about to disappear as interesting trade starts going up. 283 00:15:21,440 --> 00:15:24,880 Speaker 1: But honestly, I think, you know, we've seen such volatile 284 00:15:24,920 --> 00:15:27,720 Speaker 1: markets just in the first few weeks at the beginning 285 00:15:27,760 --> 00:15:31,200 Speaker 1: of two U One of the things I always think 286 00:15:31,200 --> 00:15:35,080 Speaker 1: back to is that I think, basically there's not real 287 00:15:35,080 --> 00:15:37,600 Speaker 1: anybody who really knows where where markets are going in 288 00:15:37,640 --> 00:15:40,600 Speaker 1: the short time, and certainly our approach is always the 289 00:15:40,800 --> 00:15:45,000 Speaker 1: peerage like this typically provide a huge amount of opportunity, 290 00:15:45,440 --> 00:15:48,720 Speaker 1: and where you're con clined is some very attractive companies 291 00:15:48,760 --> 00:15:52,520 Speaker 1: get end up getting settled off quite aggressively, even even 292 00:15:52,520 --> 00:15:54,720 Speaker 1: when they don't necessarily need to. And certainly as we 293 00:15:54,760 --> 00:15:57,160 Speaker 1: go through this earning season, there's a couple of stocks 294 00:15:57,160 --> 00:15:58,960 Speaker 1: that I'd love to pick out and talk about in 295 00:15:58,960 --> 00:16:03,560 Speaker 1: a little more detail. But you're seeing very significant punishment 296 00:16:03,800 --> 00:16:07,680 Speaker 1: of individual names on specific ending days if there's the 297 00:16:07,720 --> 00:16:12,040 Speaker 1: slightest whiff of increased capex or lower guidance to the 298 00:16:12,040 --> 00:16:14,520 Speaker 1: next couple of quarters. That's a real theme that we've 299 00:16:14,560 --> 00:16:17,040 Speaker 1: been seeing a certain season. Is Facebook one of those. 300 00:16:17,080 --> 00:16:20,400 Speaker 1: I've just been looking at the DS page and notice 301 00:16:20,480 --> 00:16:23,600 Speaker 1: the market cap is just six hundred billion dollars, which 302 00:16:23,720 --> 00:16:29,480 Speaker 1: in the age of these mega caps feels minuscule, right, Yeah, Yeah, 303 00:16:29,560 --> 00:16:33,200 Speaker 1: I mean Facebook has been a fascinating company over the 304 00:16:33,280 --> 00:16:35,560 Speaker 1: last you know, I'd say ten years, but certainly in 305 00:16:35,560 --> 00:16:38,000 Speaker 1: the last twelve eighteen months. I mean, do you think 306 00:16:38,080 --> 00:16:43,960 Speaker 1: fundamentally Facebook owns the largest and deepest network. They're trading 307 00:16:43,960 --> 00:16:48,880 Speaker 1: it like three dollars per user exactly, and there is 308 00:16:48,920 --> 00:16:53,240 Speaker 1: a Yeah, I think Facebook is a great example of 309 00:16:53,360 --> 00:16:57,160 Speaker 1: you know, I mentioned the difference between kind of individual 310 00:16:57,160 --> 00:17:00,720 Speaker 1: stock price moves and business value. To thirty billion was 311 00:17:00,720 --> 00:17:04,680 Speaker 1: wiped off Facebook on earnings day recently. Now, in terms 312 00:17:04,720 --> 00:17:06,959 Speaker 1: of kind of efficient market hypothesis, It's kind of hard 313 00:17:07,000 --> 00:17:09,359 Speaker 1: to justify the fact that the value of Facebook as 314 00:17:09,359 --> 00:17:13,440 Speaker 1: an entity changed to in a single day. Now, realistically, 315 00:17:13,480 --> 00:17:16,000 Speaker 1: what was happening in the earnings was, you know, there's 316 00:17:16,040 --> 00:17:18,080 Speaker 1: a there was a It was to me it was 317 00:17:18,080 --> 00:17:21,280 Speaker 1: a very kind of politically and regulatory for focused earling. 318 00:17:21,280 --> 00:17:25,080 Speaker 1: This call you could hear from from Mark and from Cheryl. 319 00:17:25,480 --> 00:17:28,520 Speaker 1: There was a real focus on, Hey, we're being being 320 00:17:28,560 --> 00:17:31,120 Speaker 1: we're being beaten down here. TikTok's beating us in reels. 321 00:17:32,000 --> 00:17:34,640 Speaker 1: Apple and Google have colluded against us. When it comes 322 00:17:34,680 --> 00:17:37,959 Speaker 1: to the iOS changes, we saw a big jump in 323 00:17:38,160 --> 00:17:40,520 Speaker 1: kind of cap ex spending for the likes of Facebook 324 00:17:40,560 --> 00:17:42,680 Speaker 1: from this having to spend a huge amount of money 325 00:17:42,720 --> 00:17:45,320 Speaker 1: to try and replicate the same sort of analytics that 326 00:17:45,320 --> 00:17:47,440 Speaker 1: they used to get from iOS and they now don't 327 00:17:47,440 --> 00:17:49,520 Speaker 1: get anymore. That's a big costo them and it's going 328 00:17:49,560 --> 00:17:51,720 Speaker 1: to roll through for the next few years. You're also 329 00:17:51,720 --> 00:17:55,879 Speaker 1: seeing a massive amount of capex going through from the metaverse. Honestly, 330 00:17:55,920 --> 00:17:59,160 Speaker 1: I think Facebook as an entity, I think is arguably 331 00:17:59,480 --> 00:18:02,960 Speaker 1: presenting fantastic value today in a sense that it's trading 332 00:18:03,520 --> 00:18:06,919 Speaker 1: and are cheaper multiple than IBM. It's trading in one 333 00:18:06,960 --> 00:18:09,160 Speaker 1: of the cheapest multiples we've seen for a considerable period 334 00:18:09,200 --> 00:18:11,240 Speaker 1: of time, and it's still a company that's growing on 335 00:18:12,560 --> 00:18:14,800 Speaker 1: plus a year, and it's still a company that's generating 336 00:18:15,320 --> 00:18:19,360 Speaker 1: plus incremental margins. The real question mark comes with all 337 00:18:19,400 --> 00:18:22,280 Speaker 1: of this additional capect is going spend into the metaverse 338 00:18:22,800 --> 00:18:24,840 Speaker 1: is a significant kind of question mark as to how 339 00:18:24,840 --> 00:18:26,639 Speaker 1: easy is that going to monetize and how is that 340 00:18:26,720 --> 00:18:28,200 Speaker 1: going to play out? That to me is the big 341 00:18:28,280 --> 00:18:31,760 Speaker 1: risk factor. Even accounting for that, you've got core Facebook, 342 00:18:31,760 --> 00:18:36,520 Speaker 1: which to me is cheap as we stand today. Interesting. Yeah, 343 00:18:36,600 --> 00:18:39,720 Speaker 1: interesting potential entry point for some folks that feel like 344 00:18:39,760 --> 00:18:42,920 Speaker 1: maybe they missed as some of the upside for Facebook 345 00:18:42,960 --> 00:18:46,840 Speaker 1: slash Metta Guy Davis, Managing director and portfolio manager for 346 00:18:47,160 --> 00:18:50,080 Speaker 1: g c I Investors, giving us his thoughts on these markets, 347 00:18:50,080 --> 00:18:57,480 Speaker 1: which we appreciate. All right, Let's talk cyberge security ransomwhere 348 00:18:57,600 --> 00:19:00,159 Speaker 1: it is everywhere and it pops up everyone in a 349 00:19:00,200 --> 00:19:02,720 Speaker 1: while with a high profile story, but we know it's 350 00:19:02,720 --> 00:19:06,680 Speaker 1: out there every single day. Christy Wyatt's CEO and president 351 00:19:07,000 --> 00:19:11,040 Speaker 1: of Absolute Software that's a NASAC listed security stock a 352 00:19:11,119 --> 00:19:14,800 Speaker 1: b s T is this ticker symbol um Christie, thanks 353 00:19:14,800 --> 00:19:16,840 Speaker 1: so much, for joining us here. I'd love to just 354 00:19:16,880 --> 00:19:19,280 Speaker 1: get a thirty thousand foot view of how you guys 355 00:19:19,359 --> 00:19:23,679 Speaker 1: view cybersecurity, the size of it, the growth rate, what 356 00:19:23,760 --> 00:19:25,040 Speaker 1: are some of the big issues that you guys are 357 00:19:25,040 --> 00:19:30,160 Speaker 1: looking at. Well, good morning, um, So, I think you've 358 00:19:30,240 --> 00:19:33,360 Speaker 1: entered into a whole new era of cyber security, especially 359 00:19:33,400 --> 00:19:36,800 Speaker 1: for enterprise rights as everybody's employees that are now working 360 00:19:36,840 --> 00:19:40,639 Speaker 1: from home. It's it's had a rethink almost everything we 361 00:19:40,720 --> 00:19:42,639 Speaker 1: knew about how to protect the employee, and that just 362 00:19:42,720 --> 00:19:46,560 Speaker 1: makes employees incredibly vulnerable to things like ransomware. And that's 363 00:19:46,560 --> 00:19:50,120 Speaker 1: why you're seeing this acceleration of attacks around these topics. 364 00:19:50,480 --> 00:19:55,360 Speaker 1: It's because these organizations are more vulnerable right now. Yeah, so, um, 365 00:19:55,400 --> 00:19:59,879 Speaker 1: are we able to defend ourselves as well as our 366 00:20:00,160 --> 00:20:05,320 Speaker 1: creating defenses UM that keep up with the attacks, or 367 00:20:05,440 --> 00:20:08,320 Speaker 1: or are the criminals kind of um, you know, out 368 00:20:08,320 --> 00:20:12,560 Speaker 1: maneuvering the the police in this. I think it's more 369 00:20:12,600 --> 00:20:14,959 Speaker 1: of the shift, right, I think I think we definitely 370 00:20:15,119 --> 00:20:17,359 Speaker 1: organizations are doing their very best to keep up and 371 00:20:17,359 --> 00:20:20,240 Speaker 1: there's no lack of spending. We've seen the investment in 372 00:20:20,280 --> 00:20:23,240 Speaker 1: cybersecurity accelerate over a year. I think we we talked 373 00:20:23,280 --> 00:20:28,359 Speaker 1: about a is the investment Christie, is the investment growth 374 00:20:28,359 --> 00:20:32,520 Speaker 1: consistent with because it strikes me and this is your point, 375 00:20:32,520 --> 00:20:35,719 Speaker 1: and I think it's a great one. We had everybody 376 00:20:35,800 --> 00:20:38,760 Speaker 1: kind of moving out of the prison and into the wild. 377 00:20:38,960 --> 00:20:43,119 Speaker 1: You know, everyone has taken her or his company laptop 378 00:20:43,600 --> 00:20:46,240 Speaker 1: out of the out of the building and home, and 379 00:20:46,320 --> 00:20:49,920 Speaker 1: now they're on their own WiFi networks which aren't protected. 380 00:20:50,119 --> 00:20:52,800 Speaker 1: And now they're you know, at Starbucks and you can 381 00:20:52,800 --> 00:20:56,720 Speaker 1: look over their shoulder like every every security measure is 382 00:20:56,800 --> 00:21:00,919 Speaker 1: gone all of a sudden. So yeah, and so and 383 00:21:00,960 --> 00:21:02,560 Speaker 1: so a lot of the things that we used to 384 00:21:02,600 --> 00:21:05,600 Speaker 1: rely on to protect users, like protecting the network. I 385 00:21:05,600 --> 00:21:08,480 Speaker 1: know people use the castle and the moat analogy. When 386 00:21:08,880 --> 00:21:11,080 Speaker 1: the previous regime, we all seem you were in the 387 00:21:11,080 --> 00:21:13,040 Speaker 1: building and we could protect you by watching you, and 388 00:21:13,040 --> 00:21:15,480 Speaker 1: now you're at home. And so you hear people talk 389 00:21:15,520 --> 00:21:18,040 Speaker 1: a lot about things like zero trust and moving a 390 00:21:18,040 --> 00:21:20,280 Speaker 1: lot more of the intelligence out to the device so 391 00:21:20,320 --> 00:21:23,240 Speaker 1: that your security is at home with you. And so 392 00:21:23,400 --> 00:21:25,560 Speaker 1: I think this is a massive shift and it's driving 393 00:21:25,560 --> 00:21:28,920 Speaker 1: a tremendous amount of change and investment. I think across 394 00:21:29,119 --> 00:21:32,680 Speaker 1: organizations that need to revamp their security strategy based on 395 00:21:33,240 --> 00:21:36,000 Speaker 1: the risk profile changing and the landscape of what they 396 00:21:36,000 --> 00:21:39,000 Speaker 1: need to protect is changed dramatically, and so there's a 397 00:21:39,040 --> 00:21:40,800 Speaker 1: lot of you know, this is one of those pivotal 398 00:21:40,840 --> 00:21:44,639 Speaker 1: moments in the cyber landscape where everybody's making this massive 399 00:21:44,680 --> 00:21:48,560 Speaker 1: shift all at the same time. How can small uh 400 00:21:48,560 --> 00:21:52,119 Speaker 1: and mid sized businesses afford to do this? I wonder. 401 00:21:52,200 --> 00:21:54,520 Speaker 1: I mean, I I can see a company like, you know, 402 00:21:54,600 --> 00:21:58,000 Speaker 1: a Bloomberg going out and buying the best security, but 403 00:21:58,200 --> 00:21:59,960 Speaker 1: I'm just not sure about somebody small the midsize. But 404 00:22:01,720 --> 00:22:04,639 Speaker 1: it's a great point because the big, the big ransomware, 405 00:22:04,800 --> 00:22:07,080 Speaker 1: the big cyber breaches you read about, You read about 406 00:22:07,200 --> 00:22:10,200 Speaker 1: large security firms coming in and giving you know, sort 407 00:22:10,200 --> 00:22:12,199 Speaker 1: of the details of how they are compromised, and the 408 00:22:12,240 --> 00:22:16,560 Speaker 1: attacks don't look incredibly different. It's just the stakes are higher, 409 00:22:16,600 --> 00:22:18,480 Speaker 1: and so if you are a small business and or 410 00:22:18,560 --> 00:22:21,680 Speaker 1: small enterprise, you don't have access to those same resources. 411 00:22:21,720 --> 00:22:23,760 Speaker 1: The two most important things I think that folks need 412 00:22:23,800 --> 00:22:26,240 Speaker 1: to be investing in. Number one. You know, we talk 413 00:22:26,320 --> 00:22:28,560 Speaker 1: a lot about detection and prevention. There's a lot of 414 00:22:28,560 --> 00:22:31,520 Speaker 1: tools available to help you try to screen for and 415 00:22:31,640 --> 00:22:35,080 Speaker 1: identify bad things coming into your organization. And you can 416 00:22:35,240 --> 00:22:37,240 Speaker 1: you know, you can select one of those tools. I 417 00:22:37,280 --> 00:22:39,919 Speaker 1: think the second piece and in my mind, you know 418 00:22:39,960 --> 00:22:42,440 Speaker 1: almost the more critical pieces. You should assume that even 419 00:22:42,480 --> 00:22:45,159 Speaker 1: if the largest organizations with all of their investment are 420 00:22:45,160 --> 00:22:49,040 Speaker 1: getting compromised, you are ultimately going to be the recipient 421 00:22:49,160 --> 00:22:51,719 Speaker 1: of a ransomware or some sort of cyber breach. It's 422 00:22:51,760 --> 00:22:54,400 Speaker 1: going to happen. So you have to think about remediation. 423 00:22:54,520 --> 00:22:57,080 Speaker 1: Like an example would be, you know, if you click 424 00:22:57,119 --> 00:22:59,359 Speaker 1: on that email in your device phrases and asks you 425 00:22:59,400 --> 00:23:01,880 Speaker 1: to pay rants in order to get your data back. Well, 426 00:23:01,880 --> 00:23:04,960 Speaker 1: when that system freezes, you know, whatever organization you're running, 427 00:23:05,000 --> 00:23:07,600 Speaker 1: it can no longer connect to that device. And so 428 00:23:07,640 --> 00:23:09,920 Speaker 1: what we do uniquely is we can maintain a connection 429 00:23:09,960 --> 00:23:12,240 Speaker 1: to that device because we're embedded in the hardware. And 430 00:23:12,280 --> 00:23:14,199 Speaker 1: so when you think about your investment, you have to 431 00:23:14,200 --> 00:23:16,200 Speaker 1: think about both sides. How do I know something bad 432 00:23:16,280 --> 00:23:18,600 Speaker 1: is going on? And when something bad is going on, 433 00:23:18,720 --> 00:23:20,359 Speaker 1: what am I going to do? How am I going 434 00:23:20,400 --> 00:23:23,600 Speaker 1: to get my stuff back without get shutting my school 435 00:23:23,640 --> 00:23:27,480 Speaker 1: down or my business down? And is this the I mean, 436 00:23:27,560 --> 00:23:29,720 Speaker 1: I know nothing about I T but you have the 437 00:23:29,760 --> 00:23:33,679 Speaker 1: first self healing zero trust platform can you explain that 438 00:23:33,720 --> 00:23:37,199 Speaker 1: to us. Yeah, The unique thing about Absolute is that 439 00:23:37,200 --> 00:23:39,879 Speaker 1: we're embedded in the hardware of almost every PC and 440 00:23:39,960 --> 00:23:42,960 Speaker 1: laptop that's been manufactured for the last fifteen years. So 441 00:23:43,040 --> 00:23:46,520 Speaker 1: over a half a billion devices have this capability in them. 442 00:23:46,560 --> 00:23:49,200 Speaker 1: It's just to the customer to to sort of turn 443 00:23:49,320 --> 00:23:51,560 Speaker 1: it on by working with with Absolute. And so what 444 00:23:51,680 --> 00:23:54,440 Speaker 1: that means is we can monitor the health of your 445 00:23:54,480 --> 00:23:57,399 Speaker 1: security applications or of the things you care about, and 446 00:23:57,440 --> 00:24:00,880 Speaker 1: if they become compromised, we can heal the By heal them, 447 00:24:00,960 --> 00:24:04,120 Speaker 1: we mean we can fix them, repair them, reinstall them, 448 00:24:04,119 --> 00:24:06,600 Speaker 1: so we can automate the recovery. And so if your 449 00:24:06,600 --> 00:24:09,560 Speaker 1: employee is at home, I can't just tell you, know, 450 00:24:09,640 --> 00:24:12,119 Speaker 1: I t to swing by your desktop and fix whatever 451 00:24:12,160 --> 00:24:13,920 Speaker 1: has happened on your system. I have to be able 452 00:24:14,000 --> 00:24:16,719 Speaker 1: to do that remotely. And because we're in the hardware, 453 00:24:16,720 --> 00:24:19,320 Speaker 1: we have the ability to do that even when your 454 00:24:19,320 --> 00:24:22,320 Speaker 1: security applications, your operating system may be in a state 455 00:24:22,320 --> 00:24:25,679 Speaker 1: where it's not communicating with you anymore. And so so 456 00:24:25,800 --> 00:24:27,960 Speaker 1: this is a bit of that shift I'm talking about 457 00:24:28,000 --> 00:24:30,359 Speaker 1: in in in sort of the approach, which is if 458 00:24:30,400 --> 00:24:33,320 Speaker 1: you assume everybody's not in the office, and you assume 459 00:24:33,440 --> 00:24:35,879 Speaker 1: bad things are going to happen. You have to assume 460 00:24:35,920 --> 00:24:38,399 Speaker 1: you have this lifeline. Um, Christie, I hope you get 461 00:24:38,440 --> 00:24:40,040 Speaker 1: a different way of looking at it. I hope we 462 00:24:40,080 --> 00:24:43,040 Speaker 1: get to get you back. Not enough time and fascinating stuff. 463 00:24:43,080 --> 00:24:46,840 Speaker 1: Christy Wyatt is the CEO and president of Absolute Software. 464 00:24:47,200 --> 00:24:50,240 Speaker 1: She also was named one of the top fifty women 465 00:24:50,480 --> 00:24:53,760 Speaker 1: in Softwares of Service by The Software Report and uh 466 00:24:53,920 --> 00:24:58,720 Speaker 1: CEO of the Year by The Globe and Mail. Thanks 467 00:24:58,720 --> 00:25:01,560 Speaker 1: for listening to the Bloomberg Mark Kids podcasts. You can 468 00:25:01,600 --> 00:25:05,359 Speaker 1: subscribe and listen to interviews with Apple Podcasts or whatever 469 00:25:05,440 --> 00:25:09,119 Speaker 1: podcast platform you prefer. I'm Matt Miller. I'm on Twitter 470 00:25:09,359 --> 00:25:12,879 Speaker 1: at Matt Miller three. Put on fall Sweeney I'm on 471 00:25:12,880 --> 00:25:15,840 Speaker 1: Twitter at pt Sweeney Before the podcast. You can always 472 00:25:15,840 --> 00:25:17,720 Speaker 1: catch us worldwide at Bloomberg Radio.