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Speaker 1: Bloomberg Audio Studios, podcasts, radio news from the heart of

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Speaker 1: where innovation, money and power collide in Silicon Valley and beyond.

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Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed.

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Speaker 2: Ludlow, married from New York and San Francisco.

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Speaker 3: This is Bloombag Technology coming up. President Trump, he floats

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Speaker 3: potentially in eighty percent tariff on China ahead of negotiations

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Speaker 3: due to begin Saturday. This has I urged Beijing to

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Speaker 3: do more to open up their markets to US goods.

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Speaker 4: Plus, Apple's working on youtuip for future devices including smart glasses,

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Speaker 4: Powerful max and AI servers, and lift shares.

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Speaker 3: Jumping this morning, it's biggest interday rise in November, so

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Speaker 3: after the Right and Company reported strong gross bookings in

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Speaker 3: their first quarter. But first we check in on these

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Speaker 3: markets and we're actually relatively calm.

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Speaker 5: We headed towards the weekend when we actually see a.

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Speaker 3: Little bit of a draw down on the last past

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Speaker 3: five training days. After two phenomenal weeks of gains on

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Speaker 3: the NASAQ one hundred, we just trimmed by two tenths

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Speaker 3: of a percent. Ed, it's all about tariff's It's all

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Speaker 3: about negotiations with China, whether there's any sort of ice breaking.

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Speaker 4: Yeah, and that's why I'm looking at Tesla right. I

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Speaker 4: don't see a catalyst or a headline driver on the

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Speaker 4: terminal this morning, but Tesla is headed for its third

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Speaker 4: straight weekly gain. It's the biggest run of gains on

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Speaker 4: a weekly basis September. The logic in the last twenty

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Speaker 4: four hours has been if the tariff narrative with China improves,

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Speaker 4: names like Tesla will see a bit of a reprieve.

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Speaker 4: Tesla exports some vehicles from Shanghai. The mix of vehicles

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Speaker 4: when more of them come out of Shanghai is higher

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Speaker 4: margin for Tesla. Is that the logic that the market's applying.

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Speaker 4: What we're trying to do is extrapolate from what the

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Speaker 4: President said yesterday about what might happen in the context

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Speaker 4: of tariffs, and then he takes the truth Social and

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Speaker 4: says some.

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Speaker 6: More he does.

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Speaker 3: Let's bring up that truth Social post from President Trump

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Speaker 3: earlier this morning saying that having eighty percent tariffs on

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Speaker 3: China seems about right, and then leaving it up to

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Speaker 3: Treasury Secretary Scott Besson. Let's get you the inside track

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Speaker 3: with blumbg's Michael Shepherd. Mike look, eighty percent, is that

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Speaker 3: a positive or negative for the market.

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Speaker 7: Well, you know, if the market, we're looking for a

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Speaker 7: big concession on this. They got in absolute terms of

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Speaker 7: significant cut from the current one hundred and forty five

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Speaker 7: percent tariff level. But keep in mind, Carro, that eighty

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Speaker 7: percent tariffs on goods coming in from China is still

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Speaker 7: pretty eye watering. It's at a level that would discourage

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Speaker 7: most trade. And we've seen companies, including Apple for instance,

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Speaker 7: trying to shift their supply chains and supply lines when

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Speaker 7: it comes to China to reduce their exposure to China

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Speaker 7: when it comes to goods exported to the US. And

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Speaker 7: it's interesting that the President is also framing this as

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Speaker 7: a challenge to China to open its markets, even as

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Speaker 7: he is maintaining what would be a historically high barrier there.

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Speaker 4: Mike, the President, indeed, the British Ambassador to the US,

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Speaker 4: Peter Manerlson, kind of framed this as a great deal,

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Speaker 4: the ten level tariff UK to US. But what everyone

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Speaker 4: kept asking in the Q and A is is this

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Speaker 4: the template for your other negotiations? And I think the

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Speaker 4: President basically said ten percent's a great deal. It won't

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Speaker 4: be like that for other countries.

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Speaker 7: Well, that's right, ed, and that really is the question

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Speaker 7: on the minds of trading partners and companies around the world.

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Speaker 7: They want to know, how do we negotiate with this

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Speaker 7: administration that has come in really elbows out on trade

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Speaker 7: from the start. And what we heard from Howard Lutnik

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Speaker 7: last night was that, look, this may not be a

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Speaker 7: template per se, but it is a roadmac It gives

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Speaker 7: a sort of frame two other countries to trading partners

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Speaker 7: about what sorts of concessions.

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Speaker 8: The Trump administration might be looking for.

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Speaker 7: When it comes to the UK, they came in with

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Speaker 7: some offers that were quite appealing to Donald Trump.

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Speaker 8: Won the UK agreed to buy.

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Speaker 7: Thirteen billion dollars worth of Boeing aircraft, very much music

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Speaker 7: to his ears as he tries to stoke the manufacturing

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Speaker 7: base here in the US, and also some agricultural concessions too,

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Speaker 7: with promises to increase purchases of American beef. So between

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Speaker 7: beef and airplanes, the UK found a way to get

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Speaker 7: that reciprocal tariff lowered all the way to ten percent.

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Speaker 7: That may not be the case with other countries, and

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Speaker 7: certainly negotiations with South Korea and Japan, which have a

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Speaker 7: heavy tech exposure and interest, will face a much tougher

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Speaker 7: and more complicated road.

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Speaker 8: How link indicated yesterday ed boom both.

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Speaker 9: Michael Shepherd in Washington, d C. Thank you.

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Speaker 4: In other news, China's top chip maker, Semiconductor Manufacturing International,

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Speaker 4: plunged Friday after it worn sales could fall as much

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Speaker 4: as six percent this quarter because.

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Speaker 9: Of production disruptions.

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Speaker 4: The company's co CEO unspecified issues with production lines and

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Speaker 4: warned of a likely shipment correction in the smartphone market

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Speaker 4: over the summer.

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Speaker 5: Carrot more on smartphones.

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Speaker 3: Let's turn to Apple, but actually the tech giant is

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Speaker 3: said to be designing new chips to be used in

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Speaker 3: future devices, smart glasses, more powerful max AI servers.

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Speaker 5: Let's get to Mark German.

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Speaker 3: Who's been breaking all of this news, and finally, well,

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Speaker 3: those meta ray bands are going to have some competition,

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Speaker 3: but it'll take a couple of years.

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Speaker 6: That's the big news here.

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Speaker 10: The meta smart glasses will have some competition from Apple.

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Speaker 10: Apple has been working on glasses projects for some time,

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Speaker 10: including classes without augmented reality like the metas, and glasses

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Speaker 10: with augmented reality. Those are coming further down the road.

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Speaker 10: But you need a product to hold you over till then.

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Speaker 10: They've seen the metas are popular. They've seen that artificial

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Speaker 10: intelligence is going to be a big part of hardware.

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Speaker 10: So they're going down this road. And as they've done

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Speaker 10: with other new product categories, they're developing a custom chip

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Speaker 10: for these glasses. And this chip is based on the

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Speaker 10: Apple Watch processor.

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Speaker 6: Right.

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Speaker 10: It has special components in there too to increase power efficiency,

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Speaker 10: decrease power draw, and control multiple cameras that would be

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Speaker 10: on the exterior of these glasses, and they would work

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Speaker 10: like metas where you can look at items and ask

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Speaker 10: it for context using Siri mark.

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Speaker 4: Generally speaking, this is consistent with apple strategy on custom silicon. Right,

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Speaker 4: many of the processes across the range of devices are

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Speaker 4: Apple's own and I believe made by TSMC, fabricated by TSMC.

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Speaker 4: Just explain Apple's footprint in that sense.

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Speaker 10: Yeah, the Apple for footprint is that they have their

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Speaker 10: own custom processors and basically every device they sell. They

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Speaker 10: moved away from Intel in twenty twenty. For the Mac,

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Speaker 10: the Mac now has these high end M series processors,

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Speaker 10: the Vision Pro and the iPad of the M series processors.

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Speaker 10: At this point, the iPhone and the lower and iPads

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Speaker 10: have the A series processors. They make their own chips

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Speaker 10: for AirPods for Apple watches, and so of course they're

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Speaker 10: going to do it for the glasses as well as

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Speaker 10: a significant product category within that vision brand in our likelihood,

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Speaker 10: and they used here and C like you said, for

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Speaker 10: that final manufacturing. But much of the design is done

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Speaker 10: in house from Apple in their labs across Europe, across

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Speaker 10: the United States, and they do have a license with

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Speaker 10: ARM and they use fundamental underlying technologies from ARM.

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Speaker 4: Yeah, many people talk to me about Apple in the

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Speaker 4: context of it being a fabulous chip designer in its

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Speaker 4: own right, which is a fascinating move. Bloomberg, Mark German,

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Speaker 4: thank you very much. Now coming up, we're going to

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Speaker 4: speak with the Lift CEO, David risher Is. The company

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Speaker 4: posts better than expected gross bookings for the first quarter.

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Speaker 9: This is Bloomberg Technology.

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Speaker 5: Time now for talking tech.

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Speaker 3: And first up, as you see shares a crowd strike

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Speaker 3: lower today, US prosecutors regulators, they are proving senior executors

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Speaker 3: over what may have been known by them about it's

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Speaker 3: thirty two million dollar deal with Carasoft into the IRS.

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Speaker 3: Now that's a quarter to sources. Investigators are looking into

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Speaker 3: other transactions made by CrowdStrike and said to have.

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Speaker 5: Questioned former employees.

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Speaker 3: Plus TSMC rising today is the company posted a revenue

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Speaker 3: jump of forty eight percent in April. This has companies

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Speaker 3: increased purchases of essential components ahead of global tariffs. TSMC

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Speaker 3: says that they see continued resilient demand from ai but

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Speaker 3: recent surgeons in Taiwan's dollar that compression of the company's

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Speaker 3: margins going forward, and Panasonic is cutting ten thousand jobs

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Speaker 3: and an effort to boost profitability, shifting focus into growth

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Speaker 3: areas now. The four percent workforce reduction can see five

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Speaker 3: thousand employees in Japan and five thousand overseas.

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Speaker 5: Personnel if they let go in the fiscal year.

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Speaker 3: Panasonic expects about eight hundred and ninety five million dollars

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Speaker 3: in restructuring charges this year.

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Speaker 4: ED Let's Go Back to Technology earning shares of LIFT

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Speaker 4: up around twenty percent so far today, on track for

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Speaker 4: their biggest jumps since November, company posting a better than

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Speaker 4: expected gross bookings of four point one six billion dollars,

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Speaker 4: and Little Sweetener announced an expanded share by Back program.

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Speaker 9: LIFT CEO Dave joins us for more. Good morning, David.

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Speaker 4: There's something really interesting in your kind of forward looking

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Speaker 4: strategy commentary on the cool Uber talks about something the same.

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Speaker 4: There are parts of this country, America where ride share

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Speaker 4: is less pervasive, people don't use as much, probably they

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Speaker 4: drive their own car.

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Speaker 9: You want to go after that market? Why and how so?

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Speaker 11: The answer is, we've gotten really good at obsessing over

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Speaker 11: our customers and we want to take it bigger and

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Speaker 11: go bigger. I mean, look, this is our sixteenth consecutive.

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Speaker 12: Quarter of growth. You know, we're a profitable.

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Speaker 11: Company, We're you know, generating nine hundred million dollars of cash,

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Speaker 11: and yet yet the rideshare market are still tiny. One

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Speaker 11: hundred and sixty billion rides in the United States every

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Speaker 11: year and we only do a couple three billion between

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Speaker 11: the two of us. So there's so much opportunity. It

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Speaker 11: really is better to be in the back of the

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Speaker 11: car having someone else drive you, and we want to

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Speaker 11: do it in places like Indianapolis and others where you know,

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Speaker 11: the opportunities even bigger cash.

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Speaker 4: When last year on which was just a few weeks ago,

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Speaker 4: we were talk talking about M and A in Europe,

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Speaker 4: and with respect, it was a modest deal. The buy

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Speaker 4: back is clearly well received by your investors. Yeah, but

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Speaker 4: that would indicate that you have some ability to do

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Speaker 4: m and a going forward you know, do you see

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Speaker 4: that in your capital plans? And if you did buy something,

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Speaker 4: what would it be.

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Speaker 11: So, so, first, thanks for acknowledging it's true. I mean,

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Speaker 11: this is a business that is now generating nearly a

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Speaker 11: billion of dollars of cash in the trailing twelve months.

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Speaker 12: So that's a wonderful place to be.

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Speaker 11: Again, huge thanks to the incredible team that has been

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Speaker 11: working so dang hard to make this business not only

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Speaker 11: great for customers, but great for shareholders as well.

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Speaker 12: So now the question is, right, what are other opportunities?

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Speaker 11: I would say our near term focus is making the

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Speaker 11: cash that we've got, you know, putting it to work.

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Speaker 11: As you say, we just acquired free Now, which will

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Speaker 11: allow us to expand internationally.

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Speaker 12: You know, nothing more.

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Speaker 11: Obviously to announce right now, aside from the buyback, of course,

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Speaker 11: but it's great to be in a strong position. We've

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Speaker 11: got a strong balance sheet and a strong income statement,

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Speaker 11: so it feels that's a good place to be and.

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Speaker 3: It's a strong position that you manage to defend off

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Speaker 3: engine capital, David, in terms of they were a pushy

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Speaker 3: investor wanting changes potentially a board level, but they've withdrawn

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Speaker 3: that because of what you've given to the investor base

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Speaker 3: in terms of buybacks, David.

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Speaker 5: Is that a cyber relief?

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Speaker 12: I mean, you know, we talk to investors all the time.

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Speaker 11: I would say maybe not so much the cyber relief

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Speaker 11: as much as just it absolutely allows us to continue

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Speaker 11: to focus on our riders and our drivers.

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Speaker 12: That's sort of the big thing.

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Speaker 11: But it's great that investors are responding so well to

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Speaker 11: what it is that we're doing. Again, share buy back

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Speaker 11: is great. You know, profitable growth, you know, quarter after quarter,

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Speaker 11: that's great.

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Speaker 12: And this is what I've always said, it's.

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Speaker 11: Customer obsession that drives profitable growth, and we're sort of

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Speaker 11: seeing that play out now.

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Speaker 3: And that customer obsession drives innovation, drives autonomous vehicles. I

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Speaker 3: know you're looking at Atlanta, You've got a partnership there.

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Speaker 3: How much are you're going to see driverless vehicles automatically

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Speaker 3: you're going to have safety drivers in the car.

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Speaker 5: What is that going to look like as a pilot.

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Speaker 11: Yeah, so this is a pilot that we're doing with

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Speaker 11: main Mobility set back. Autonomous vehicles are going to come.

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Speaker 11: Right they're here in San Francisco, you see them everywhere.

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Speaker 11: They're obviously in La and Austin and other places as well.

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Speaker 12: They'll come.

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Speaker 11: It'll be many, many years before they're a big deal,

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Speaker 11: but as they come, it's such a great opportunity for

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Speaker 11: ride share and for a lyft because it allows us

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Speaker 11: to you know, provide better service, you know, using different technologies.

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Speaker 12: As you say, we'll be.

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Speaker 11: Starting in Lantam in a couple of months, middle of

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Speaker 11: the summer. We will start with a sort of a

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Speaker 11: confidence driver, someone else in the car to kind of

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Speaker 11: help make sure that people feel comfortable.

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Speaker 12: With what's going on there.

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Speaker 11: It'll be a fairly small scale pilot, but this is

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Speaker 11: something it'll grow into Texas next year with a partnership

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Speaker 11: with mobil I and others, and then we'll.

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Speaker 12: Just keep building and building and building.

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Speaker 11: To the point where drivers are driving millions of people

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Speaker 11: and autonomous vehicles are driving millions of people as well.

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Speaker 4: David, you're a technology CEO, and as such you must

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Speaker 4: field questions on economics and the state of trade and travel.

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Speaker 9: It's our favorite thing to do.

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Speaker 4: Squ Uber reflected on the idea of cross border travel

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Speaker 4: Canada into the US, the inbound travel into the US

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Speaker 4: being soft business travel. People arrive at airports, are they

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Speaker 4: or are they not doing ride share? What are you

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Speaker 4: seeing through the consumer about the state of this economy.

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Speaker 12: I don't say we're seeing strength. And I know a

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Speaker 12: lot of people are trying to look granula where why?

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Speaker 11: So I'll give you a couple of examples. Let's actually

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Speaker 11: go back literally to earlier this week Sinkle demyle, right,

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Speaker 11: that's not a holiday, that's necessarily a huge thing. But

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Speaker 11: at the same time we saw one of our biggest

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Speaker 11: sink of demios ever, it's a very very strong day.

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Speaker 12: Let's go back to the end of March.

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Speaker 11: Last week in March was actually our strongest week ever

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Speaker 11: in terms of ride value. I think what we're seeing

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Speaker 11: here is ride share has become a very sort of

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Speaker 11: base staple part of so many people's lives that I

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Speaker 11: don't really expect a sort of consumer sentiment fluctuates around

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Speaker 11: to see that much difference. I'll talk about airports for

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Speaker 11: just a second, because you asked airports basically quarter to

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Speaker 11: quarter are flat. It is true, consumer, excuse me, the

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Speaker 11: commute is going up faster, so if you look at

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Speaker 11: it that way, consumer's growing a little bit faster.

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Speaker 12: Excuse me, commute, I keep saying that.

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Speaker 11: But you know, again, even when you look at airports, gosh,

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Speaker 11: it's only one in five people use rightdchhair to get

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Speaker 11: to reports in the first place. That means eighty percent

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Speaker 11: is still out there for sort of the you know,

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Speaker 11: the picking. So I think our big focus is trying

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Speaker 11: to expand the market. I don't think that the macro

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Speaker 11: stuff is a big deal right now for us.

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Speaker 5: You're growing in Canada, David.

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Speaker 3: And it's interesting I've asked this time and time again

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Speaker 3: a start of IBM asked, a vouba ask of a view.

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Speaker 3: Is there any impact from being an American brand going

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Speaker 3: into a country such as Canada right now?

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Speaker 5: Because we are hearing of pushback thirty seconds you know, it's.

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Speaker 12: So interesting, No, is the real answer.

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Speaker 11: In fact, we've just got authorization to open in Quebec,

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Speaker 11: in the province of Quebec, which which we might have

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Speaker 11: wondered whether it was going to happen given everything going on.

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Speaker 11: So no, we've actually seen acceptance. Actually, Toronto's a big

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Speaker 11: city for.

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Speaker 3: Us, going super well, David Risher, so great to catch

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Speaker 3: up with you Thinbous some the numbers.

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Speaker 5: We appreciate it.

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Speaker 11: Lift to see it is a pleasure, Thanks you guys.

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Speaker 4: Pinterest ches up after the company reported second quarter revenue

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Speaker 4: guidance that beat expectations and told analysts the platform was

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Speaker 4: leveraging AI to attract advertisers. CEO Bill Ready spoke to Bloomberg.

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Speaker 6: Earlier, pintresses where gen Z goes to shop.

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Speaker 13: Gen Z is now our largest fastest growing demographic, over

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Speaker 13: forty percent of our users. And you know they're coming

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Speaker 13: here to shop. We're giving them a great shopping destination.

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Speaker 13: But you know that has allowed us to deliver great

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Speaker 13: performance for our advertisers. We've delivered a performance advertising platform

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Speaker 13: where advertisers can get clicks and conversions and great performance.

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Speaker 13: We're giving them AI enabled tools, so it's easier than

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Speaker 13: ever for them to go create campaigns on Pinterest and

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Speaker 13: see really great returns on that. So that's the other

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Speaker 13: side of the business is that we've made Pinterest a

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Speaker 13: shopping destination. Eighty five percent of our users come to

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Speaker 13: us directly, and then we connect them with advertisers to

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Speaker 13: make it really easy for advertisers to connect with those users.

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Speaker 13: In this moment where they're in market looking for something

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Speaker 13: to buy but haven't decided what to buy. That's a

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Speaker 13: great moment for those two to meet, and we see

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Speaker 13: that continue to accelerate. We're all time highs on users

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Speaker 13: and all time highs on depth of engagement per user,

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Speaker 13: really driven by AI and the personalization there and then

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Speaker 13: how we're connecting shoppers and sellers.

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Speaker 3: So, is that keeping the likes of Timu and Sin

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Speaker 3: who a lot of those gen zs are going to

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Speaker 3: buy on your platform?

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Speaker 5: Is that sticking around because many had worried.

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Speaker 3: Because of the towers, because of the difficulty accessing the

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Speaker 3: US and consumer in terms of price point, what we'd

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Speaker 3: see retrenchment in terms of ads from those companies.

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Speaker 13: Yeah, Well, we're a global platform. You know, we're overre

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Speaker 13: you know, five hundred and seventy million users. Eighty percent

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Speaker 13: of those are outside the US, and so we noted

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Speaker 13: as others that for Asian cross border sellers, you know,

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Speaker 13: that has slowed down coming into the US, as others

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Speaker 13: have noted as well. But we're seeing those sellers sell

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Speaker 13: more globally and we're helping them to connect to other

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Speaker 13: markets around the world. Here in the US consumers are resilient.

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Speaker 13: You know, there's lots of public spending information that says

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Speaker 13: that consumers are still shopping. We went through a major

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Speaker 13: supply chain destruction just a few years ago during the pandemic,

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Speaker 13: and you know, we all saw, you know, things are

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Speaker 13: out of stock and consumers found other ways to buy,

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Speaker 13: other things to buy.

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Speaker 6: And we see that happening on our platform.

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Speaker 13: That while you have things like budget conscious searches like

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Speaker 13: you know, budget friendly recipes or you know budget you know,

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Speaker 13: party decorations, budget party favors, and those kinds of things

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Speaker 13: up two hundred percent plus here on here. People find

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Speaker 13: substitute products, they find other ways to go sort of

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Speaker 13: bring delight into their life, and we're a great place

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Speaker 13: to help them do that, in a great place for

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Speaker 13: advertisers to see these shifting consumer trends.

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Speaker 3: Bill Ready speaking to us earlier, and let's just stick

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Speaker 3: with earnings, with the consumer sentiment as well. Let's go

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Speaker 3: to buy now, pay later company. A firm look shares

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Speaker 3: our trading lower, but they actually increase guidance.

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Speaker 5: A firm CEO, Max Livtin is.

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Speaker 3: Here with US analysts calling this a knee jerk reaction

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Speaker 3: and ultimately maybe some lofty expectations. But are you, like Bill,

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Speaker 3: are you still seeing the consumer spending right now?

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Speaker 14: We are, We really are, He's He's exactly at A

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Speaker 14: couldn't agree more. US consumer has been resilient. They found

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Speaker 14: new things to buy, new things to be excited about.

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Speaker 14: We're seeing really strong growth, which is posted three six

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Speaker 14: percent GMB growth and that's a third quarter in a

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Speaker 14: row acceleration. So the rumors of US consumer decline are

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Speaker 14: somewhat exaggerated, it seems.

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Speaker 5: And maybe it's lofty expectations.

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Speaker 3: I'm sure you're going to tell me you don't check

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Speaker 3: in on the shares very much, but when you do

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Speaker 3: see sentiment like this on the back of your numbers, what.

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Speaker 5: Do you think investors are shying away from? Is it competition?

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Speaker 12: You know?

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Speaker 14: Hard for me to tell. I try not to check

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Speaker 14: too often. I primarily care about it from the point

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Speaker 14: of view of the team feeling that their hard work

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Speaker 14: is actually understood by the market.

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Speaker 6: And I think it.

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Speaker 14: Took our consumers and our merchant partners about a decade

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Speaker 14: to fully grasp just how different and how a creative

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Speaker 14: we are to their sales, and just how powerful this

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Speaker 14: whole new idea is and then it just happened. And

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Speaker 14: so you know they say slowly at first, then all

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Speaker 14: at once. That's my that's my hope for the market.

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Speaker 9: Max. Hello, let's talk about Costco.

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Speaker 4: You have this arrangement with Costco to allow a Costco

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Speaker 4: costumer to pay over time. I am a Costco member

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Speaker 4: and have a City credit card, and the benefit of

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Speaker 4: the card is that it gives me five percent cash

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Speaker 4: back on gas or four percent on groceries. Right, so

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Speaker 4: I'm incentivized there. You and I've talked about this a lot, right,

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Speaker 4: the sort of academic approach to whether you should put

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Speaker 4: something or credit or not. Just explain how you think

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Speaker 4: you're going to be competitive against Costco members like I

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Speaker 4: with this offer.

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Speaker 6: You know, I'm not sure I'm going to be competitive.

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Speaker 14: I think Costco card, like everything offered a Costco, is

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Speaker 14: a great value. And you know it's certainly not a

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Speaker 14: thing we are trying to talk you out of if

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Speaker 14: you are truly committed to it. We speak to a

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Speaker 14: younger demo than a typical credit card consumer who is

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Speaker 14: very miles towards et cetera.

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Speaker 6: Conscious.

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Speaker 14: They choose to borrow with a firm because they have

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Speaker 14: a point of view on They don't like credit card debt.

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Speaker 14: They want to know exactly the true cost of the

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Speaker 14: thing they're buying. They want to know when they're out

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Speaker 14: of debt and fully paid out. And they're less interested

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Speaker 14: in rewards, much more interested in just transparency of pricing.

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Speaker 14: And I think Costco understands that as they try to

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Speaker 14: attract younger buyers, and that's why they partner with us.

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Speaker 4: I am no longer in the younger demographic.

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Speaker 6: And they're still you're still in a very young demographic.

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Speaker 9: Max.

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Speaker 4: You know the performance, you know, the top end of

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Speaker 4: the guide was above consensus. Just where were the specific

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Speaker 4: elements of strength for you? Is there anything you're doing

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Speaker 4: on the technology side that's giving you a real advantage.

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Speaker 14: No, it's very fashionable to flash your AI credentials, but

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Speaker 14: we have built a really, really meaningful business entirely on

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Speaker 14: the strength of AI and machine learning all these years

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Speaker 14: underwriting consumers with alternative data, completely different approach to modeling,

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Speaker 14: while of course remaining fully compliant with all the applicable laws.

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Speaker 14: So we are a technology first company with real depth

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Speaker 14: of approvals, while maintaining our core values to just no

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Speaker 14: laid fees, no compounding, interest, no deferred interest, all the

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Speaker 14: things that you sort of people love to complain about

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Speaker 14: when they talk about credit cards. And that's given us

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Speaker 14: real strength with the younger consumer gen Z. Just like

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00:21:19,320 --> 00:21:21,760
Speaker 14: Bill said, you know, we have a huge penetration into

442
00:21:21,800 --> 00:21:23,520
Speaker 14: millennial demographic gen Zy demographic.

443
00:21:23,800 --> 00:21:25,199
Speaker 6: That's what retailers come to us for.

444
00:21:25,280 --> 00:21:27,960
Speaker 14: They want to attract this younger buyer who really does

445
00:21:28,000 --> 00:21:30,600
Speaker 14: differentiate between Hey, I don't want to revolve.

446
00:21:30,680 --> 00:21:31,440
Speaker 6: I don't want to.

447
00:21:33,000 --> 00:21:36,359
Speaker 14: Think of this as a buy now, pay forever, which

448
00:21:36,400 --> 00:21:37,959
Speaker 14: is you know what much much credit cards are?

449
00:21:38,080 --> 00:21:39,040
Speaker 6: Yeah?

450
00:21:39,440 --> 00:21:42,280
Speaker 3: Is that younger demographic? Is any of your demographic starting

451
00:21:42,320 --> 00:21:44,359
Speaker 3: to use you more? Because the economic uncertainty is that

452
00:21:44,400 --> 00:21:46,240
Speaker 3: what you actually anticipate going forward?

453
00:21:47,520 --> 00:21:48,840
Speaker 6: It doesn't appear to be that way.

454
00:21:49,080 --> 00:21:54,439
Speaker 14: I don't think we are gaining share because of economic uncertainty.

455
00:21:55,000 --> 00:21:55,560
Speaker 6: You know, TVD.

456
00:21:55,640 --> 00:21:57,879
Speaker 14: We're living in volatile moments, so who knows what's going

457
00:21:57,920 --> 00:22:00,320
Speaker 14: to happen next. But right now our consumer comes to

458
00:22:00,400 --> 00:22:03,880
Speaker 14: us more than anything for the clarity and the transparency.

459
00:22:04,240 --> 00:22:07,280
Speaker 6: But most importantly, I think we are.

460
00:22:08,720 --> 00:22:10,760
Speaker 14: Seeing increased growth right now because of all a zero

461
00:22:10,800 --> 00:22:13,200
Speaker 14: percent offers that we're seeing that the work we're putting

462
00:22:13,240 --> 00:22:13,920
Speaker 14: into the market right.

463
00:22:13,880 --> 00:22:16,760
Speaker 9: Now a firm CEO, Max left Chin. Great to have

464
00:22:16,800 --> 00:22:18,160
Speaker 9: you back with us. Thank you very much.

465
00:22:25,320 --> 00:22:27,399
Speaker 5: Welcome back to Blue Meg Technology. I'm Caroline Hide in

466
00:22:27,400 --> 00:22:28,400
Speaker 5: New York and.

467
00:22:28,359 --> 00:22:30,840
Speaker 4: I met Ludlow in San Francisco. Let's look at the

468
00:22:30,920 --> 00:22:33,960
Speaker 4: markets on the week and technology in particular, and as

469
00:22:33,960 --> 00:22:37,480
Speaker 4: that one hundred as it stands very modestly in decline

470
00:22:37,480 --> 00:22:40,720
Speaker 4: over the course of five days. Tariffs have been what's

471
00:22:40,800 --> 00:22:42,680
Speaker 4: driving things. I just want to look at alphabet paran

472
00:22:42,720 --> 00:22:48,000
Speaker 4: of Google right the doj antitrust remedy trial is one

473
00:22:48,119 --> 00:22:52,560
Speaker 4: factor search considerations. Rivals coming out like Apple and saying

474
00:22:53,000 --> 00:22:54,760
Speaker 4: this is what we plan to do in the search

475
00:22:54,880 --> 00:22:58,600
Speaker 4: market is really impacted their stock on Wednesday, one hundred

476
00:22:58,600 --> 00:23:01,879
Speaker 4: and forty seven billion dollars in market shed alone on aggregate,

477
00:23:01,920 --> 00:23:04,159
Speaker 4: heading to about one hundred and twenty billion dollars a

478
00:23:04,160 --> 00:23:06,960
Speaker 4: market cap decline. Later in the program, we'll get into it,

479
00:23:07,160 --> 00:23:09,720
Speaker 4: and in terms of specific movers, we're going to go

480
00:23:09,760 --> 00:23:12,879
Speaker 4: to the earnings context very shortly. But think about the

481
00:23:12,920 --> 00:23:16,800
Speaker 4: strength that we're seeing in streaming Cara in particular, and

482
00:23:16,840 --> 00:23:18,760
Speaker 4: then not just here in America, but we've got some

483
00:23:18,840 --> 00:23:20,240
Speaker 4: interesting us from around the world.

484
00:23:20,480 --> 00:23:22,199
Speaker 5: We did, and it's your world of gaming end.

485
00:23:22,280 --> 00:23:25,600
Speaker 3: Because let's turn our attention to Nintendo projecting actually weaker

486
00:23:25,600 --> 00:23:29,679
Speaker 3: than expected initial sales for the Switch too, despite overwhelming

487
00:23:29,760 --> 00:23:32,159
Speaker 3: pre orders and market expectations that it would be the

488
00:23:32,240 --> 00:23:33,840
Speaker 3: fastest selling console in history.

489
00:23:34,280 --> 00:23:36,919
Speaker 5: Jason Schards joining us on what is this? You know?

490
00:23:36,960 --> 00:23:38,040
Speaker 5: Off by three percent?

491
00:23:38,440 --> 00:23:41,320
Speaker 3: They've got trade and tariff's to be thinking about. But Jason,

492
00:23:41,440 --> 00:23:43,399
Speaker 3: why the slower than anticipated sales?

493
00:23:44,280 --> 00:23:45,480
Speaker 9: Tariffs are the big one.

494
00:23:45,720 --> 00:23:47,160
Speaker 8: Nobody knows what's going to happen.

495
00:23:47,280 --> 00:23:51,040
Speaker 15: Nintendo included, they make the majority of switch tos that

496
00:23:51,080 --> 00:23:54,400
Speaker 15: are sold in the US. They make in Vietnam, which

497
00:23:54,480 --> 00:23:57,320
Speaker 15: is one of those tariffs that is still unpaused for

498
00:23:57,480 --> 00:24:00,560
Speaker 15: ninety days according to President Trump. So I guess we'll

499
00:24:00,600 --> 00:24:04,800
Speaker 15: see what happens there. The other factor is supply shortage.

500
00:24:05,160 --> 00:24:08,280
Speaker 15: That's always a question surrounding the release of these new consoles.

501
00:24:08,320 --> 00:24:12,280
Speaker 15: How many can they actually manufacture and get to US shores,

502
00:24:12,280 --> 00:24:13,320
Speaker 15: whether or without tariffs.

503
00:24:14,280 --> 00:24:16,960
Speaker 4: There's definitely a technology conversation had with the Switch to

504
00:24:17,160 --> 00:24:19,960
Speaker 4: right inside of it is a high performance and video

505
00:24:20,000 --> 00:24:23,080
Speaker 4: processor that takes the Switch to from being a kind

506
00:24:23,080 --> 00:24:27,760
Speaker 4: of lower fidelity, lower performance console to being more on

507
00:24:27,880 --> 00:24:31,679
Speaker 4: par with PlayStation and Xbox. You know what is going

508
00:24:31,760 --> 00:24:34,359
Speaker 4: to be different this time around for the Switch, Like culturally,

509
00:24:34,640 --> 00:24:36,880
Speaker 4: how do you think people will approach what it can

510
00:24:36,920 --> 00:24:40,120
Speaker 4: do and the types of games you can play on it.

511
00:24:40,119 --> 00:24:42,720
Speaker 15: It's interesting this issue comes out of a really fascinating

512
00:24:42,760 --> 00:24:46,280
Speaker 15: time for the video game industry in that graphical Fideli

513
00:24:46,359 --> 00:24:49,320
Speaker 15: has not really gotten that much more impressive over the

514
00:24:49,359 --> 00:24:52,400
Speaker 15: last four or five years. So Nintendo is pretty well

515
00:24:52,400 --> 00:24:56,320
Speaker 15: positioned even with technology that is a few years old

516
00:24:56,320 --> 00:24:59,120
Speaker 15: at this point, even technology that is five six years old,

517
00:24:59,760 --> 00:25:02,720
Speaker 15: it is in a good position to still sell games

518
00:25:02,800 --> 00:25:05,280
Speaker 15: and compete with the other two consoles. I mean, the

519
00:25:05,280 --> 00:25:07,720
Speaker 15: other big factor is that people buy Nintendo consoles for

520
00:25:07,840 --> 00:25:12,400
Speaker 15: Nintendo games. They want Mario, they want Zelda. Mario Kart World,

521
00:25:12,440 --> 00:25:14,879
Speaker 15: which is launching alongside the Switch too, is expected to

522
00:25:14,920 --> 00:25:17,440
Speaker 15: sell a kajillion copies of the last one sold over

523
00:25:17,560 --> 00:25:22,280
Speaker 15: seventy million units alone. So we're talking about a customer

524
00:25:22,320 --> 00:25:25,280
Speaker 15: base that is built in and doesn't care quite as

525
00:25:25,359 --> 00:25:29,480
Speaker 15: much about graphics, about the highest end GTA level games

526
00:25:29,640 --> 00:25:32,239
Speaker 15: as much as they do about these franchises that are

527
00:25:32,400 --> 00:25:35,880
Speaker 15: really always consistently good bluebags.

528
00:25:35,960 --> 00:25:38,560
Speaker 4: Jason Schreyer, who leads our video games industry coverage.

529
00:25:38,560 --> 00:25:40,240
Speaker 9: Great to have you on the show. Thank you very much.

530
00:25:40,480 --> 00:25:43,520
Speaker 4: Let's stick with earning shares of Trade Desk for flirting

531
00:25:43,560 --> 00:25:46,080
Speaker 4: with the best day in more than two years, getting

532
00:25:46,080 --> 00:25:48,680
Speaker 4: a boost from better than expected q ON results and

533
00:25:48,840 --> 00:25:53,440
Speaker 4: upbeat forecasts. The best performer on the Nasdaq one hundred

534
00:25:53,600 --> 00:25:58,840
Speaker 4: in terms of percentage gain. Laura Martin, Media, Senior Entertainment Analyst,

535
00:25:58,880 --> 00:26:02,720
Speaker 4: joint US. Now, now let me do this. What is

536
00:26:02,840 --> 00:26:03,600
Speaker 4: trade desk?

537
00:26:04,119 --> 00:26:06,760
Speaker 9: What does it do and does it do it well?

538
00:26:08,760 --> 00:26:09,960
Speaker 16: What an excellent question.

539
00:26:10,320 --> 00:26:13,520
Speaker 17: Okay, So Trade Desk is a demand side platform, a DSP,

540
00:26:14,119 --> 00:26:16,320
Speaker 17: and so when you load a web page of a

541
00:26:16,359 --> 00:26:20,000
Speaker 17: news article you're watching, Trade Desk delivers an AD in

542
00:26:20,040 --> 00:26:23,560
Speaker 17: real time in milliseconds, and that ad has actually gone

543
00:26:23,640 --> 00:26:27,600
Speaker 17: to auction in those milliseconds because they know who you are,

544
00:26:27,640 --> 00:26:29,560
Speaker 17: and they know how much money you make, and they

545
00:26:29,600 --> 00:26:32,400
Speaker 17: know that you're in the financial industry. So your AD

546
00:26:32,520 --> 00:26:36,320
Speaker 17: units that are getting served to you in milliseconds are

547
00:26:36,520 --> 00:26:39,560
Speaker 17: very valuable, much more valuable than like, you know, my kids,

548
00:26:39,600 --> 00:26:42,160
Speaker 17: who earns no money and lives at home. So Trade

549
00:26:42,160 --> 00:26:45,080
Speaker 17: Desk delivers those in milliseconds, having bought them at auction

550
00:26:45,200 --> 00:26:49,560
Speaker 17: and they represent the largest two hundred advertisers. I think

551
00:26:49,600 --> 00:26:52,480
Speaker 17: technically they have, you know, four thousand ad buyers, but

552
00:26:52,520 --> 00:26:56,399
Speaker 17: they only represent ad buyers typically top of funnel without

553
00:26:56,400 --> 00:26:58,520
Speaker 17: a performance metric associated with it.

554
00:26:59,119 --> 00:27:01,720
Speaker 3: They're doing strategy, got grades Kokai, they say, is giving

555
00:27:01,760 --> 00:27:04,359
Speaker 3: them more power than ever. It's interesting, Lad, They're obviously

556
00:27:04,400 --> 00:27:06,600
Speaker 3: delivering on a technology front, but there's got to be

557
00:27:06,640 --> 00:27:09,960
Speaker 3: a resilient desire to be advertising this moment. We've seen

558
00:27:09,960 --> 00:27:12,359
Speaker 3: that from Meta, We've just seen it from Pinterest as well.

559
00:27:12,640 --> 00:27:16,320
Speaker 3: From your perspective, is the advertisers, the marketerstre willing to

560
00:27:16,359 --> 00:27:17,360
Speaker 3: spend in this environment.

561
00:27:18,840 --> 00:27:23,160
Speaker 17: So every company has now reported earnings on every call

562
00:27:23,200 --> 00:27:27,360
Speaker 17: they've gotten. Asked since April second, terraffs, have you seen downdraft?

563
00:27:27,800 --> 00:27:30,159
Speaker 17: And with a couple exceptions, everybody else has said no.

564
00:27:30,280 --> 00:27:32,960
Speaker 17: Trade desk said no. To date, it's been five weeks

565
00:27:32,960 --> 00:27:36,040
Speaker 17: since April second, they have not seen downdraft other than

566
00:27:36,480 --> 00:27:40,720
Speaker 17: in areas like autos or home appliances is down like

567
00:27:40,760 --> 00:27:45,720
Speaker 17: forty percent with one company I talked to since April second,

568
00:27:46,080 --> 00:27:48,560
Speaker 17: and you guys probably saw like the ports are empty.

569
00:27:48,560 --> 00:27:51,680
Speaker 17: They've turned around these container ship carriers and they're going

570
00:27:51,680 --> 00:27:54,520
Speaker 17: back home rather than try to empty in the ports

571
00:27:54,520 --> 00:27:56,639
Speaker 17: and pay the tariffs. So I think this might be

572
00:27:56,720 --> 00:28:00,239
Speaker 17: a gathering storm. But so far Trade Desk has not

573
00:28:00,320 --> 00:28:01,360
Speaker 17: seen impact.

574
00:28:01,040 --> 00:28:03,159
Speaker 9: Of Terras Laura.

575
00:28:03,240 --> 00:28:05,600
Speaker 4: This week in Europe we had the semi final of

576
00:28:05,640 --> 00:28:09,640
Speaker 4: the Champions League, which makes me think about Paramount. You know,

577
00:28:09,800 --> 00:28:13,000
Speaker 4: just as a case study, they showed some streaming strength,

578
00:28:13,480 --> 00:28:16,400
Speaker 4: but on aggregate, what have you learned about the streaming

579
00:28:16,600 --> 00:28:20,359
Speaker 4: landscape this far and particularly consumer attitudes to all of

580
00:28:20,359 --> 00:28:21,760
Speaker 4: the platforms available to them?

581
00:28:22,640 --> 00:28:26,600
Speaker 17: Right, so we can talk about dizz Disney, Warner Brothers,

582
00:28:26,680 --> 00:28:29,800
Speaker 17: Discovery and Paramount like all together big streamers, which is

583
00:28:29,800 --> 00:28:32,879
Speaker 17: the source of question. But from a stock point of view, first,

584
00:28:32,960 --> 00:28:37,560
Speaker 17: I just want to make a distinction because Paramount revenue

585
00:28:37,640 --> 00:28:42,320
Speaker 17: felt ten percent, Warner Brothers fell six percent, and both

586
00:28:42,360 --> 00:28:45,320
Speaker 17: of them were projecting negative four percent revenue growth this

587
00:28:45,400 --> 00:28:48,560
Speaker 17: year and flat next year, which begs the question why

588
00:28:48,600 --> 00:28:50,080
Speaker 17: do you need to be in these now because they're

589
00:28:50,080 --> 00:28:54,640
Speaker 17: still not growing. Disney, by contrast, revenue up seven percent.

590
00:28:54,920 --> 00:28:57,880
Speaker 17: We're showing revenue up four percent this year and four

591
00:28:57,920 --> 00:29:01,080
Speaker 17: percent next year. A lot of that is driven by streaming,

592
00:29:01,160 --> 00:29:03,000
Speaker 17: so that's where I get to the answer to your question.

593
00:29:03,400 --> 00:29:05,800
Speaker 17: A lot of that is driven by you know, not

594
00:29:05,840 --> 00:29:09,200
Speaker 17: only does Disney have better have more diversity of assets,

595
00:29:09,240 --> 00:29:12,080
Speaker 17: of course, but it also has better films, which helps.

596
00:29:12,120 --> 00:29:14,280
Speaker 17: Although films less than fifteen percent of the business at

597
00:29:14,280 --> 00:29:17,840
Speaker 17: Walt Disney these days, but streaming is what's really driving

598
00:29:17,840 --> 00:29:22,440
Speaker 17: that outperformance compared to Paramount, compared to Warner Brothers, Paramount

599
00:29:22,440 --> 00:29:24,680
Speaker 17: has the overhang of can it's deal get done? That's

600
00:29:24,680 --> 00:29:27,720
Speaker 17: a big that's a big like cloud on Paramount. But

601
00:29:27,840 --> 00:29:31,600
Speaker 17: the fundamentals of streaming are a bright spot. But if

602
00:29:31,640 --> 00:29:34,840
Speaker 17: you can't make good films or you can't sell good TV,

603
00:29:35,360 --> 00:29:38,480
Speaker 17: it's you have a big linear TV business, which both

604
00:29:38,480 --> 00:29:40,600
Speaker 17: Paramount does and Warner Brothers Discovery does.

605
00:29:41,480 --> 00:29:44,560
Speaker 16: Like it's a problem, right because it's a shrinking to guests.

606
00:29:44,600 --> 00:29:47,480
Speaker 3: I mean, also, what's the problem is if you're suddenly

607
00:29:47,480 --> 00:29:52,760
Speaker 3: going to have massive costs on your movies going well anywhere,

608
00:29:52,760 --> 00:29:55,400
Speaker 3: being able to make content abroad, being able to bring

609
00:29:55,480 --> 00:29:59,200
Speaker 3: foreign made produced content into the United States that has

610
00:29:59,240 --> 00:30:02,120
Speaker 3: been proposed by the administration seems to be hurting the

611
00:30:02,240 --> 00:30:04,520
Speaker 3: very industry that they're trying to protect. Right now, what

612
00:30:04,680 --> 00:30:06,640
Speaker 3: is the impact on paramount. What is the impact on

613
00:30:06,680 --> 00:30:08,160
Speaker 3: Disney if this does go into full.

614
00:30:08,000 --> 00:30:12,040
Speaker 17: Force, right, No, it's an excellent point because he is

615
00:30:12,120 --> 00:30:14,160
Speaker 17: trying to help the industry. But as you know, films

616
00:30:14,200 --> 00:30:17,200
Speaker 17: take three years to make, so the tariffs immediately would

617
00:30:17,280 --> 00:30:19,640
Speaker 17: hurt a film that started three years ago before this

618
00:30:19,760 --> 00:30:23,840
Speaker 17: policy existed, before the companies could react. So every film

619
00:30:23,880 --> 00:30:26,320
Speaker 17: trying to come back to America that's been made offshore,

620
00:30:26,520 --> 00:30:28,000
Speaker 17: whether it's tax advantage or not.

621
00:30:28,040 --> 00:30:29,320
Speaker 16: You watch Mission Impossible.

622
00:30:29,520 --> 00:30:31,920
Speaker 17: They are going for the tax breaks, right, They're going

623
00:30:31,960 --> 00:30:35,560
Speaker 17: for these really exotic locations, and they don't like money.

624
00:30:35,600 --> 00:30:37,320
Speaker 16: Isn't the reason they're off shore. They're off sure for

625
00:30:37,360 --> 00:30:39,160
Speaker 16: the art of it, like for where, like.

626
00:30:39,160 --> 00:30:41,840
Speaker 17: The plot line. So now those films are coming back

627
00:30:41,840 --> 00:30:44,400
Speaker 17: over the next two years, and they're all going to

628
00:30:44,440 --> 00:30:46,320
Speaker 17: be taxed at one hundred percent Like that is not

629
00:30:46,440 --> 00:30:47,640
Speaker 17: helpful for the industry.

630
00:30:49,720 --> 00:30:52,600
Speaker 4: I mentioned it at the top of the block about

631
00:30:52,640 --> 00:30:57,040
Speaker 4: alphabet and Google. Right, it's been an astonishing week frankly

632
00:30:57,120 --> 00:30:59,480
Speaker 4: about revelation in the antitrust context.

633
00:31:00,000 --> 00:31:02,520
Speaker 9: You focus on YouTube historically.

634
00:31:02,160 --> 00:31:04,600
Speaker 4: When we talk about the streamers, but just in that

635
00:31:04,800 --> 00:31:09,840
Speaker 4: antitrust context, have you sort of recalculated remodeled. The future

636
00:31:09,920 --> 00:31:13,320
Speaker 4: you see for Alphabet and its various properties largely search.

637
00:31:14,280 --> 00:31:15,480
Speaker 16: Yeah, like our policies.

638
00:31:15,520 --> 00:31:18,320
Speaker 17: You know, we do evaluation of YouTube as a standalone

639
00:31:18,480 --> 00:31:21,200
Speaker 17: entity every single quarter this company.

640
00:31:21,280 --> 00:31:23,240
Speaker 16: My opinion is Google is worth more.

641
00:31:23,160 --> 00:31:25,400
Speaker 17: On Alphabet is worth more in pieces than it is

642
00:31:25,440 --> 00:31:29,520
Speaker 17: together because it's my opinion that people within the Alphabet

643
00:31:29,560 --> 00:31:34,400
Speaker 17: holding company framework get subsidized by search, so they are

644
00:31:34,440 --> 00:31:36,600
Speaker 17: not required to make money as if they're a general

645
00:31:36,640 --> 00:31:39,200
Speaker 17: manager of their P and L. I think the best

646
00:31:39,200 --> 00:31:41,400
Speaker 17: thing that could happen for ad Tech is for them

647
00:31:41,440 --> 00:31:43,800
Speaker 17: to be forced at the September hearing to spin off

648
00:31:44,080 --> 00:31:47,720
Speaker 17: the ad server and the SSP their supply side, which

649
00:31:47,760 --> 00:31:50,520
Speaker 17: is the marriage piece to prade desperate cert. If they

650
00:31:50,600 --> 00:31:52,640
Speaker 17: got that would be really great for ATIK. It would

651
00:31:52,680 --> 00:31:56,200
Speaker 17: also be good for not the Google perimeter that stayed behind,

652
00:31:56,600 --> 00:31:59,640
Speaker 17: but the Google asset. The managers that happen to have

653
00:31:59,760 --> 00:32:02,400
Speaker 17: to to compete for the first time and not get

654
00:32:02,400 --> 00:32:06,280
Speaker 17: the benefit of being tied to search data and YouTube data,

655
00:32:06,320 --> 00:32:09,320
Speaker 17: which is best in class like consumer data. So and

656
00:32:09,400 --> 00:32:12,760
Speaker 17: I think the more Alphabet gets smaller, the more they

657
00:32:12,760 --> 00:32:15,880
Speaker 17: can focus on what matters, which is solving the search problem.

658
00:32:15,880 --> 00:32:18,800
Speaker 17: Now that AI is here and making sure YouTube remains

659
00:32:18,840 --> 00:32:20,480
Speaker 17: the number one streamer on Earth.

660
00:32:21,280 --> 00:32:23,240
Speaker 3: Laura Martin, It's always great to catch up with you.

661
00:32:23,560 --> 00:32:24,760
Speaker 3: Happy weekend speech.

662
00:32:24,760 --> 00:32:26,880
Speaker 5: You see. We hope of Needham appreciate it.

663
00:32:26,920 --> 00:32:30,360
Speaker 3: Meanwhile, coming up, more earnings, more CEOs, Draftking CEO Jason

664
00:32:30,400 --> 00:32:35,040
Speaker 3: Robbins joins us discuss the company and will slightly cut

665
00:32:35,400 --> 00:32:40,400
Speaker 3: to its guide as a Bluebote technology.

666
00:32:47,280 --> 00:32:51,320
Speaker 4: Draftking shares rising, with investors shrugging off the company's reduced

667
00:32:51,440 --> 00:32:56,480
Speaker 4: full year guidance after a customer friendly March Madness weight

668
00:32:56,600 --> 00:33:00,680
Speaker 4: on sales. Draftking CEO Jason Robbins delighted, say joins us.

669
00:33:01,240 --> 00:33:04,360
Speaker 4: There has been some, let's say, back of the Napkin

670
00:33:05,040 --> 00:33:09,200
Speaker 4: math and people look at the revenue forecast being lowered

671
00:33:09,200 --> 00:33:12,200
Speaker 4: by about two hundred million dollars. Right, Bear with me, Jason,

672
00:33:12,880 --> 00:33:17,160
Speaker 4: Is that exactly how much Draft Kings lost on March Madness,

673
00:33:17,320 --> 00:33:17,800
Speaker 4: the two.

674
00:33:17,640 --> 00:33:18,720
Speaker 9: Hundred million dollar figure.

675
00:33:20,280 --> 00:33:22,400
Speaker 18: No, we actually put out the numbers.

676
00:33:22,440 --> 00:33:24,560
Speaker 19: We have a bridge in our earnings materials.

677
00:33:24,560 --> 00:33:27,440
Speaker 18: It was a little bit less, but overall it's not

678
00:33:27,560 --> 00:33:28,320
Speaker 18: too far off.

679
00:33:29,440 --> 00:33:31,680
Speaker 3: Okay, talk to us a little bit about what's too

680
00:33:31,760 --> 00:33:35,000
Speaker 3: far off as well? What else is driving perhaps an

681
00:33:35,040 --> 00:33:38,200
Speaker 3: expected downgrade in full year guidance. Analysts seem to be

682
00:33:38,280 --> 00:33:40,600
Speaker 3: taking as well on the chin as our investors, but

683
00:33:40,680 --> 00:33:42,240
Speaker 3: the regulatory environment as well.

684
00:33:42,280 --> 00:33:43,640
Speaker 5: How much you haven't in you once for that?

685
00:33:45,400 --> 00:33:47,800
Speaker 18: Well, what we we put this out there. We had

686
00:33:47,840 --> 00:33:50,880
Speaker 18: about one hundred and seventy million from sport outcomes and

687
00:33:50,920 --> 00:33:57,240
Speaker 18: then thirty million came from jack Pocket being caused to

688
00:33:57,280 --> 00:33:59,640
Speaker 18: not be operating anymore in Texas. But then the overall

689
00:33:59,640 --> 00:34:02,680
Speaker 18: fundamentals of the business were actually very strong. We saw

690
00:34:02,800 --> 00:34:07,080
Speaker 18: increased to structural hold rate, our promotional efficiency increase, so

691
00:34:07,360 --> 00:34:10,440
Speaker 18: some of those things offset as well. So really the

692
00:34:10,440 --> 00:34:13,160
Speaker 18: fundamentals of the business are about as healthy as can be.

693
00:34:13,320 --> 00:34:15,680
Speaker 18: And I think the real question is will all these

694
00:34:15,680 --> 00:34:18,759
Speaker 18: sport outcomes turn around in two quarters in a row now?

695
00:34:18,840 --> 00:34:21,800
Speaker 18: But obviously that happens, and that's part of the greatness

696
00:34:21,880 --> 00:34:24,000
Speaker 18: of the product is that customers can win and they

697
00:34:24,040 --> 00:34:25,879
Speaker 18: can go on winning streaks like this, and it makes

698
00:34:25,880 --> 00:34:28,000
Speaker 18: it a lot of fun obviously, and you know, we'll

699
00:34:28,000 --> 00:34:30,520
Speaker 18: see it was the first time and I think second

700
00:34:30,560 --> 00:34:32,560
Speaker 18: time ever there were all four number one seeds in

701
00:34:32,600 --> 00:34:34,759
Speaker 18: the final four. Only the first time ever that that

702
00:34:34,840 --> 00:34:37,800
Speaker 18: happened with also all twos in one three seed in

703
00:34:37,840 --> 00:34:41,399
Speaker 18: the Elite eight, So you never know, maybe there will

704
00:34:41,440 --> 00:34:43,239
Speaker 18: be another year like that, but probably not.

705
00:34:43,360 --> 00:34:44,759
Speaker 19: It was more likely an anomaly.

706
00:34:44,840 --> 00:34:47,600
Speaker 18: And you know NBA playoffs already have had a bunch

707
00:34:47,600 --> 00:34:49,600
Speaker 18: of upsets, so it tends to kind of swing.

708
00:34:49,400 --> 00:34:50,680
Speaker 19: Around the other way over time.

709
00:34:50,800 --> 00:34:52,520
Speaker 5: Ah, too much consistency.

710
00:34:52,840 --> 00:34:56,400
Speaker 3: But what also is consistent, Jason, is what a massive

711
00:34:56,520 --> 00:34:58,399
Speaker 3: jump in your monthly active uses when you talk about

712
00:34:58,400 --> 00:35:02,279
Speaker 3: the Jackpot in particular, and I'm interested in how jackpocket

713
00:35:02,320 --> 00:35:06,560
Speaker 3: is transferring to other sports, casino games and the likes

714
00:35:06,640 --> 00:35:08,960
Speaker 3: or are people sticking to that lottery application.

715
00:35:10,719 --> 00:35:14,720
Speaker 18: Well, the jackpocket is still very early in its growth,

716
00:35:14,760 --> 00:35:17,319
Speaker 18: it's still quite nascent, so we believe there's a ton

717
00:35:17,320 --> 00:35:19,560
Speaker 18: of upside for that business and we're excited about it.

718
00:35:19,880 --> 00:35:23,080
Speaker 18: We haven't fully integrated it into the DraftKings app yet,

719
00:35:23,120 --> 00:35:25,399
Speaker 18: we haven't put it on our platform yet, which should

720
00:35:25,480 --> 00:35:29,040
Speaker 18: dramatically increase both the conversion metrics and also the cross

721
00:35:29,040 --> 00:35:31,799
Speaker 18: sellability and marketing ability. And the cross sells already well

722
00:35:31,840 --> 00:35:34,840
Speaker 18: above our expectations, so we think there's even more upside there,

723
00:35:35,480 --> 00:35:37,040
Speaker 18: so we're pretty excited about it. We think there's a

724
00:35:37,080 --> 00:35:39,120
Speaker 18: lot of growth potential, but it's still small, so the

725
00:35:39,160 --> 00:35:42,840
Speaker 18: overall impact on the business isn't great yet, but hopefully

726
00:35:42,880 --> 00:35:45,319
Speaker 18: that changes as Jackpocket continues to grow.

727
00:35:46,480 --> 00:35:50,239
Speaker 4: Jason, in your industry, there are big almost legacy names

728
00:35:50,320 --> 00:35:53,000
Speaker 4: Las Vegas Sands, for example, that are pulling out of

729
00:35:53,120 --> 00:35:57,439
Speaker 4: bids for land based casinos, and I wonder how much

730
00:35:57,480 --> 00:36:03,360
Speaker 4: you can assess their nervousness that online gambling just cannibalizes

731
00:36:03,400 --> 00:36:06,400
Speaker 4: demand for land base and how that impacts you.

732
00:36:08,239 --> 00:36:10,680
Speaker 18: Well, it's certainly a perception that we have to fight

733
00:36:10,800 --> 00:36:13,520
Speaker 18: because it's out there. I do think that the facts

734
00:36:13,560 --> 00:36:16,239
Speaker 18: are very mixed on that. While there's certainly some examples

735
00:36:16,280 --> 00:36:19,040
Speaker 18: you can point to where there's been you know, diminishing

736
00:36:19,080 --> 00:36:21,880
Speaker 18: markets where they've had online gaming, it's also you know

737
00:36:21,960 --> 00:36:24,440
Speaker 18: often where there have been declines going into that, and

738
00:36:24,480 --> 00:36:26,960
Speaker 18: then you see the complete opposite story in states like

739
00:36:27,000 --> 00:36:30,239
Speaker 18: New Jersey where they grew and really reversed a declining

740
00:36:30,239 --> 00:36:34,200
Speaker 18: trend for years after legalizing online gaming. And it's also

741
00:36:34,239 --> 00:36:37,439
Speaker 18: a different property to property. I do understand though, why

742
00:36:37,520 --> 00:36:40,319
Speaker 18: if you're a company that has no ie gaming play

743
00:36:40,400 --> 00:36:42,919
Speaker 18: right now, doesn't have an app, doesn't have a way

744
00:36:42,920 --> 00:36:45,000
Speaker 18: to make money off of it, that this wouldn't be

745
00:36:45,040 --> 00:36:47,960
Speaker 18: seen as any upside for you, and so naturally, you know,

746
00:36:47,960 --> 00:36:50,880
Speaker 18: if there's no upside there, there can only be downside.

747
00:36:50,880 --> 00:36:52,359
Speaker 19: And I do understand that.

748
00:36:52,719 --> 00:36:55,800
Speaker 18: But I think the amount of cannibalization and the downside

749
00:36:55,800 --> 00:36:57,920
Speaker 18: has been greatly exaggerated and we need to do a

750
00:36:57,960 --> 00:36:59,919
Speaker 18: good job, or a better job, I should say, educate

751
00:37:00,239 --> 00:37:03,480
Speaker 18: on that, because the numbers don't necessarily support that story.

752
00:37:04,480 --> 00:37:07,839
Speaker 3: Jason Robbins, Draftking CEO, thanks so much for joining us today.

753
00:37:07,880 --> 00:37:10,239
Speaker 5: I appreciate it. Thank you foring wow, we're going.

754
00:37:10,160 --> 00:37:12,279
Speaker 3: To look with Sticking with sports, we also just caught

755
00:37:12,360 --> 00:37:15,279
Speaker 3: up with David Beckham's former teammate Gary Neville. After the

756
00:37:15,320 --> 00:37:18,760
Speaker 3: two partner up, they recommitted to buying Saltford City Football

757
00:37:18,760 --> 00:37:21,680
Speaker 3: Club alongside global advisor and investment platform can Seller Group

758
00:37:21,840 --> 00:37:24,400
Speaker 3: and a whole host of other business executives. Now, Neville

759
00:37:24,400 --> 00:37:27,399
Speaker 3: spoke about the importance of content as well as pitch

760
00:37:27,440 --> 00:37:29,680
Speaker 3: performance to take it all the way to the Championship

761
00:37:29,719 --> 00:37:30,640
Speaker 3: League in the next five years.

762
00:37:30,680 --> 00:37:32,279
Speaker 5: Take a listen you.

763
00:37:32,280 --> 00:37:34,600
Speaker 20: Refer to Obviously Wrexham THEYD done a great job there

764
00:37:34,680 --> 00:37:36,680
Speaker 20: over the last few years. But we've been in Salford

765
00:37:36,719 --> 00:37:39,319
Speaker 20: now for ten years. We had a documentary nine years ago,

766
00:37:39,360 --> 00:37:41,400
Speaker 20: I think the very first fly on the Wall documentary

767
00:37:41,440 --> 00:37:43,680
Speaker 20: of a football club that was on the BBC and

768
00:37:43,800 --> 00:37:46,520
Speaker 20: used to get millions of people watching it. We definitely

769
00:37:46,560 --> 00:37:49,840
Speaker 20: want to revisit that type of model and grow commercial revenues,

770
00:37:50,040 --> 00:37:52,120
Speaker 20: but doing it in such a way whereby football is

771
00:37:52,160 --> 00:37:55,440
Speaker 20: always deemed as a priority, and you know, there is

772
00:37:55,520 --> 00:37:58,120
Speaker 20: great excitement on the ground here. It's a new injection

773
00:37:58,160 --> 00:37:59,640
Speaker 20: of life into Salford City.

774
00:38:02,080 --> 00:38:12,680
Speaker 5: On Bloomberg dot com ed, the.

775
00:38:12,600 --> 00:38:16,160
Speaker 4: Federal Trade Commission has spent the past month presenting evidence

776
00:38:16,239 --> 00:38:20,080
Speaker 4: to show the social media giant Meta should be broken up,

777
00:38:20,120 --> 00:38:22,440
Speaker 4: and testimony from more big names.

778
00:38:22,200 --> 00:38:23,560
Speaker 9: Is expected in the coming weeks.

779
00:38:23,719 --> 00:38:26,320
Speaker 4: Bloombo's Riley Griffin is out on the East Coast in

780
00:38:26,480 --> 00:38:28,000
Speaker 4: DC tracking what's going on.

781
00:38:28,640 --> 00:38:29,640
Speaker 9: What is the latest?

782
00:38:29,840 --> 00:38:32,000
Speaker 4: You know, there are so many headlines that come out

783
00:38:32,040 --> 00:38:35,520
Speaker 4: over the course of the process based on people's testimony.

784
00:38:35,760 --> 00:38:38,480
Speaker 4: It's hard to say where, like net we stand right now.

785
00:38:39,760 --> 00:38:42,360
Speaker 21: Well, we are at the midpoint of the trial. We

786
00:38:42,480 --> 00:38:46,040
Speaker 21: expect potentially next week or the week thereafter, Meta to

787
00:38:46,160 --> 00:38:49,680
Speaker 21: begin in earnest its defense. But what we saw just

788
00:38:49,880 --> 00:38:55,680
Speaker 21: yesterday was Instagram chief Adam musserri defending Meta against the FTC,

789
00:38:55,800 --> 00:38:58,680
Speaker 21: which is making the claim that Meta has dominated the

790
00:38:58,800 --> 00:39:02,600
Speaker 21: friends and family market that means social media that is

791
00:39:02,640 --> 00:39:05,879
Speaker 21: focused on connecting with your friends. It's a tough case

792
00:39:05,880 --> 00:39:10,120
Speaker 21: ahead because, as Adam Asseri said, TikTok has emerged as

793
00:39:10,160 --> 00:39:13,319
Speaker 21: a primary competitor and they are more focused on entertainment.

794
00:39:14,160 --> 00:39:18,120
Speaker 3: Ronnie, there's evidence that was shown at this trial that

795
00:39:18,160 --> 00:39:20,720
Speaker 3: you're not always being recommended to connect with your friends

796
00:39:20,760 --> 00:39:24,399
Speaker 3: or your family, and groomers have been presented as being

797
00:39:24,520 --> 00:39:28,440
Speaker 3: actually shown and recommended children to connect with. This is

798
00:39:28,480 --> 00:39:31,399
Speaker 3: an a document that Meta itself had done an investigation.

799
00:39:30,840 --> 00:39:33,480
Speaker 5: With Yes in twenty nineteen.

800
00:39:34,000 --> 00:39:38,359
Speaker 21: Meta internal documents identified groomers, a term that they were

801
00:39:38,440 --> 00:39:42,799
Speaker 21: using to define child predators were being served miners as

802
00:39:43,000 --> 00:39:47,960
Speaker 21: suggested follows on Instagram. They found that seven percent twenty

803
00:39:48,160 --> 00:39:52,640
Speaker 21: seven percent of the follow suggestions made to this cohort

804
00:39:52,680 --> 00:39:55,560
Speaker 21: of potential child predators were foreign miners.

805
00:39:55,920 --> 00:39:58,440
Speaker 5: And this came up from the.

806
00:39:58,360 --> 00:40:01,520
Speaker 21: FTC, which was trying to and straight that Meta's acquisition

807
00:40:01,560 --> 00:40:04,360
Speaker 21: of Instagram had actually degraded the quality of the app.

808
00:40:04,800 --> 00:40:06,879
Speaker 3: Now, it must be said that twenty nineteen is several

809
00:40:06,920 --> 00:40:08,719
Speaker 3: years ago, and now in twenty twenty five. They have

810
00:40:08,800 --> 00:40:11,120
Speaker 3: made a lot of steps in terms of child protection

811
00:40:11,320 --> 00:40:13,640
Speaker 3: and teen safety, but fully into it for you to

812
00:40:13,640 --> 00:40:15,960
Speaker 3: bring us that story, Riley Griffin, thank you and.

813
00:40:16,040 --> 00:40:16,759
Speaker 5: All things meta.

814
00:40:16,840 --> 00:40:18,799
Speaker 3: But let's turn to the case that's been gripping the

815
00:40:18,800 --> 00:40:20,600
Speaker 3: tech world too. And it's the final day of the

816
00:40:20,719 --> 00:40:24,440
Speaker 3: arguments in a trial to determine how or if to

817
00:40:24,480 --> 00:40:28,200
Speaker 3: break up Google search monopoly. Jos Cisco joins us now

818
00:40:28,600 --> 00:40:31,279
Speaker 3: and just wrap it up for us in terms of

819
00:40:31,320 --> 00:40:34,920
Speaker 3: where you think the balance lies now. Have they managed

820
00:40:34,960 --> 00:40:37,600
Speaker 3: to show to the court that search is being so

821
00:40:37,719 --> 00:40:40,080
Speaker 3: disrupted at this moment that perhaps they don't need to

822
00:40:40,280 --> 00:40:43,120
Speaker 3: unwind some of their payments that they put to Apple

823
00:40:43,160 --> 00:40:43,760
Speaker 3: for example.

824
00:40:45,160 --> 00:40:49,520
Speaker 22: I think the judge is fairly skeptical of Google's argument

825
00:40:49,640 --> 00:40:52,640
Speaker 22: so far. Whether he wants to go so far as

826
00:40:52,680 --> 00:40:55,200
Speaker 22: to break up the company and force them to sell

827
00:40:55,280 --> 00:40:59,279
Speaker 22: off off Chrome, I think that's sort of up in

828
00:40:59,320 --> 00:41:03,000
Speaker 22: the air. But this idea of cutting off the money flow,

829
00:41:03,160 --> 00:41:06,160
Speaker 22: I mean, he found in his ruling last year that

830
00:41:06,239 --> 00:41:09,960
Speaker 22: the payments were anti competitive, so it's hard to imagine

831
00:41:10,000 --> 00:41:13,239
Speaker 22: that he wouldn't want to stop sort of cut off

832
00:41:13,239 --> 00:41:16,600
Speaker 22: that money flow. At the very minimum.

833
00:41:16,800 --> 00:41:20,440
Speaker 4: A lot of the headlines been driven by partners and

834
00:41:20,560 --> 00:41:24,719
Speaker 4: competitors testimony. What has been for you the biggest headline

835
00:41:24,719 --> 00:41:29,360
Speaker 4: about how some of those witnesses have described the market

836
00:41:29,640 --> 00:41:31,880
Speaker 4: and how they think this should be resolved.

837
00:41:33,160 --> 00:41:33,799
Speaker 9: So there's all.

838
00:41:34,239 --> 00:41:37,680
Speaker 22: The trial has been very forward looking because the Justice

839
00:41:37,680 --> 00:41:41,200
Speaker 22: Department wants to sort of prevent Google from getting a

840
00:41:41,239 --> 00:41:44,480
Speaker 22: monopoly in the next iteration, the next generation of search,

841
00:41:44,520 --> 00:41:49,960
Speaker 22: which is generative AI, and so there's been a lot

842
00:41:49,960 --> 00:41:54,120
Speaker 22: of testimony from companies like open Ai and Perplexity, and

843
00:41:54,200 --> 00:41:57,680
Speaker 22: even at Apple as well about how they want to

844
00:41:58,040 --> 00:42:01,880
Speaker 22: incorporate those types of products into the search, into their

845
00:42:02,160 --> 00:42:06,399
Speaker 22: browsers and their search engines. And Apple was sort of

846
00:42:06,640 --> 00:42:11,320
Speaker 22: which benefits immensely from Google's payments to something like twenty

847
00:42:11,360 --> 00:42:13,759
Speaker 22: billion dollars a year or more. They were sort of

848
00:42:14,160 --> 00:42:16,520
Speaker 22: it was very interesting to see them kind of downplay

849
00:42:16,560 --> 00:42:21,240
Speaker 22: the importance of Google's like current search product, their core product,

850
00:42:21,600 --> 00:42:26,120
Speaker 22: and play up the future of search being AI, which

851
00:42:26,200 --> 00:42:27,040
Speaker 22: I don't think.

852
00:42:26,920 --> 00:42:29,799
Speaker 9: Is wrong, but they also have a lot to.

853
00:42:29,760 --> 00:42:33,480
Speaker 22: Lose if they if those payments are cut off, so

854
00:42:33,520 --> 00:42:36,720
Speaker 22: they don't want they want to make Google's current products

855
00:42:36,719 --> 00:42:38,560
Speaker 22: seem less important, so the judge will leave.

856
00:42:38,480 --> 00:42:41,279
Speaker 4: It alone alphabet on course to shed one hundred and

857
00:42:41,320 --> 00:42:44,280
Speaker 4: thirty billion dollars in market cap this week alone. Bloomba's justisco,

858
00:42:44,600 --> 00:42:46,680
Speaker 4: thank you very much. That does it for this edition

859
00:42:46,880 --> 00:42:48,960
Speaker 4: A balloon bag technology character, it does.

860
00:42:49,120 --> 00:42:49,680
Speaker 5: What a week?

861
00:42:49,760 --> 00:42:52,239
Speaker 3: What a week of turbulence around tariffs. We have much

862
00:42:52,280 --> 00:42:54,960
Speaker 3: anticipated going into the Chinese negotiations, but look at what's

863
00:42:55,000 --> 00:42:57,600
Speaker 3: happened to Bitcoin ed over the last five training days,

864
00:42:57,640 --> 00:42:58,720
Speaker 3: up more than seven percent.

865
00:42:58,960 --> 00:43:01,239
Speaker 5: We clipsed that one hundred one thousand dollars mark as well.

866
00:43:01,280 --> 00:43:04,240
Speaker 5: It's risk on there. Don't forget to check out our podcast.

867
00:43:04,440 --> 00:43:05,560
Speaker 5: This is Brumo Technology