WEBVTT - Apple Developing Chips for AI Servers, Lyft CEO Talks Growth Plans 0:00:02.520 --> 0:00:09.119 Bloomberg Audio Studios, podcasts, radio news from the heart of 0:00:09.200 --> 0:00:14.920 where innovation, money and power collide in Silicon Valley and beyond. 0:00:15.360 --> 0:00:19.680 This is Bloomberg Technology with Caroline Hyde and Ed. 0:00:19.720 --> 0:00:35.400 Ludlow, married from New York and San Francisco. 0:00:35.520 --> 0:00:39.159 This is Bloombag Technology coming up. President Trump, he floats 0:00:39.200 --> 0:00:42.720 potentially in eighty percent tariff on China ahead of negotiations 0:00:43.000 --> 0:00:45.640 due to begin Saturday. This has I urged Beijing to 0:00:45.680 --> 0:00:47.920 do more to open up their markets to US goods. 0:00:48.600 --> 0:00:53.360 Plus, Apple's working on youtuip for future devices including smart glasses, 0:00:53.400 --> 0:00:56.400 Powerful max and AI servers, and lift shares. 0:00:56.520 --> 0:00:59.440 Jumping this morning, it's biggest interday rise in November, so 0:00:59.440 --> 0:01:02.760 after the Right and Company reported strong gross bookings in 0:01:02.800 --> 0:01:04.640 their first quarter. But first we check in on these 0:01:04.640 --> 0:01:07.200 markets and we're actually relatively calm. 0:01:07.240 --> 0:01:09.560 We headed towards the weekend when we actually see a. 0:01:09.560 --> 0:01:11.199 Little bit of a draw down on the last past 0:01:11.319 --> 0:01:14.880 five training days. After two phenomenal weeks of gains on 0:01:14.880 --> 0:01:17.400 the NASAQ one hundred, we just trimmed by two tenths 0:01:17.400 --> 0:01:20.000 of a percent. Ed, it's all about tariff's It's all 0:01:20.040 --> 0:01:23.279 about negotiations with China, whether there's any sort of ice breaking. 0:01:24.080 --> 0:01:25.880 Yeah, and that's why I'm looking at Tesla right. I 0:01:25.920 --> 0:01:28.840 don't see a catalyst or a headline driver on the 0:01:28.959 --> 0:01:31.800 terminal this morning, but Tesla is headed for its third 0:01:31.880 --> 0:01:34.600 straight weekly gain. It's the biggest run of gains on 0:01:34.600 --> 0:01:37.800 a weekly basis September. The logic in the last twenty 0:01:37.840 --> 0:01:41.759 four hours has been if the tariff narrative with China improves, 0:01:42.080 --> 0:01:44.320 names like Tesla will see a bit of a reprieve. 0:01:44.560 --> 0:01:48.560 Tesla exports some vehicles from Shanghai. The mix of vehicles 0:01:48.560 --> 0:01:50.760 when more of them come out of Shanghai is higher 0:01:50.800 --> 0:01:54.080 margin for Tesla. Is that the logic that the market's applying. 0:01:54.240 --> 0:01:56.080 What we're trying to do is extrapolate from what the 0:01:56.120 --> 0:01:59.520 President said yesterday about what might happen in the context 0:01:59.560 --> 0:02:01.960 of tariffs, and then he takes the truth Social and 0:02:02.000 --> 0:02:02.400 says some. 0:02:02.400 --> 0:02:03.200 More he does. 0:02:03.320 --> 0:02:06.320 Let's bring up that truth Social post from President Trump 0:02:06.320 --> 0:02:09.840 earlier this morning saying that having eighty percent tariffs on 0:02:09.919 --> 0:02:12.360 China seems about right, and then leaving it up to 0:02:12.360 --> 0:02:15.360 Treasury Secretary Scott Besson. Let's get you the inside track 0:02:15.440 --> 0:02:18.920 with blumbg's Michael Shepherd. Mike look, eighty percent, is that 0:02:19.000 --> 0:02:20.639 a positive or negative for the market. 0:02:22.240 --> 0:02:24.320 Well, you know, if the market, we're looking for a 0:02:24.480 --> 0:02:28.280 big concession on this. They got in absolute terms of 0:02:28.400 --> 0:02:31.600 significant cut from the current one hundred and forty five 0:02:31.639 --> 0:02:34.640 percent tariff level. But keep in mind, Carro, that eighty 0:02:34.680 --> 0:02:37.800 percent tariffs on goods coming in from China is still 0:02:37.840 --> 0:02:40.760 pretty eye watering. It's at a level that would discourage 0:02:40.919 --> 0:02:44.880 most trade. And we've seen companies, including Apple for instance, 0:02:45.400 --> 0:02:49.000 trying to shift their supply chains and supply lines when 0:02:49.040 --> 0:02:52.600 it comes to China to reduce their exposure to China 0:02:52.720 --> 0:02:56.360 when it comes to goods exported to the US. And 0:02:56.400 --> 0:02:59.480 it's interesting that the President is also framing this as 0:02:59.520 --> 0:03:02.639 a challenge to China to open its markets, even as 0:03:02.720 --> 0:03:06.560 he is maintaining what would be a historically high barrier there. 0:03:07.840 --> 0:03:11.079 Mike, the President, indeed, the British Ambassador to the US, 0:03:11.200 --> 0:03:13.800 Peter Manerlson, kind of framed this as a great deal, 0:03:14.160 --> 0:03:18.760 the ten level tariff UK to US. But what everyone 0:03:18.840 --> 0:03:20.919 kept asking in the Q and A is is this 0:03:21.040 --> 0:03:24.280 the template for your other negotiations? And I think the 0:03:24.320 --> 0:03:27.800 President basically said ten percent's a great deal. It won't 0:03:27.880 --> 0:03:29.840 be like that for other countries. 0:03:30.639 --> 0:03:32.840 Well, that's right, ed, and that really is the question 0:03:33.040 --> 0:03:36.480 on the minds of trading partners and companies around the world. 0:03:36.520 --> 0:03:39.200 They want to know, how do we negotiate with this 0:03:39.240 --> 0:03:43.320 administration that has come in really elbows out on trade 0:03:43.360 --> 0:03:46.280 from the start. And what we heard from Howard Lutnik 0:03:46.360 --> 0:03:48.680 last night was that, look, this may not be a 0:03:48.720 --> 0:03:51.880 template per se, but it is a roadmac It gives 0:03:51.960 --> 0:03:55.480 a sort of frame two other countries to trading partners 0:03:55.480 --> 0:03:57.960 about what sorts of concessions. 0:03:57.280 --> 0:03:59.760 The Trump administration might be looking for. 0:04:00.080 --> 0:04:02.040 When it comes to the UK, they came in with 0:04:02.080 --> 0:04:05.040 some offers that were quite appealing to Donald Trump. 0:04:05.320 --> 0:04:07.840 Won the UK agreed to buy. 0:04:07.840 --> 0:04:11.440 Thirteen billion dollars worth of Boeing aircraft, very much music 0:04:11.560 --> 0:04:14.640 to his ears as he tries to stoke the manufacturing 0:04:14.720 --> 0:04:18.800 base here in the US, and also some agricultural concessions too, 0:04:19.120 --> 0:04:23.080 with promises to increase purchases of American beef. So between 0:04:23.279 --> 0:04:26.280 beef and airplanes, the UK found a way to get 0:04:26.279 --> 0:04:29.320 that reciprocal tariff lowered all the way to ten percent. 0:04:29.600 --> 0:04:32.080 That may not be the case with other countries, and 0:04:32.120 --> 0:04:35.599 certainly negotiations with South Korea and Japan, which have a 0:04:35.640 --> 0:04:39.000 heavy tech exposure and interest, will face a much tougher 0:04:39.040 --> 0:04:40.360 and more complicated road. 0:04:40.400 --> 0:04:43.760 How link indicated yesterday ed boom both. 0:04:43.800 --> 0:04:46.000 Michael Shepherd in Washington, d C. Thank you. 0:04:46.360 --> 0:04:50.840 In other news, China's top chip maker, Semiconductor Manufacturing International, 0:04:51.240 --> 0:04:54.560 plunged Friday after it worn sales could fall as much 0:04:54.600 --> 0:04:56.960 as six percent this quarter because. 0:04:56.680 --> 0:04:58.040 Of production disruptions. 0:04:58.240 --> 0:05:03.120 The company's co CEO unspecified issues with production lines and 0:05:03.200 --> 0:05:06.480 warned of a likely shipment correction in the smartphone market 0:05:06.720 --> 0:05:07.440 over the summer. 0:05:07.520 --> 0:05:08.760 Carrot more on smartphones. 0:05:08.839 --> 0:05:10.840 Let's turn to Apple, but actually the tech giant is 0:05:10.880 --> 0:05:12.800 said to be designing new chips to be used in 0:05:12.839 --> 0:05:16.520 future devices, smart glasses, more powerful max AI servers. 0:05:16.960 --> 0:05:18.160 Let's get to Mark German. 0:05:17.960 --> 0:05:20.680 Who's been breaking all of this news, and finally, well, 0:05:20.720 --> 0:05:22.640 those meta ray bands are going to have some competition, 0:05:22.680 --> 0:05:23.960 but it'll take a couple of years. 0:05:25.080 --> 0:05:26.120 That's the big news here. 0:05:26.160 --> 0:05:29.440 The meta smart glasses will have some competition from Apple. 0:05:29.760 --> 0:05:32.520 Apple has been working on glasses projects for some time, 0:05:32.600 --> 0:05:36.720 including classes without augmented reality like the metas, and glasses 0:05:37.000 --> 0:05:40.080 with augmented reality. Those are coming further down the road. 0:05:40.320 --> 0:05:42.360 But you need a product to hold you over till then. 0:05:42.600 --> 0:05:46.120 They've seen the metas are popular. They've seen that artificial 0:05:46.160 --> 0:05:48.240 intelligence is going to be a big part of hardware. 0:05:48.279 --> 0:05:50.599 So they're going down this road. And as they've done 0:05:50.600 --> 0:05:53.479 with other new product categories, they're developing a custom chip 0:05:53.920 --> 0:05:55.960 for these glasses. And this chip is based on the 0:05:56.000 --> 0:05:57.200 Apple Watch processor. 0:05:57.880 --> 0:05:58.159 Right. 0:05:58.240 --> 0:06:02.000 It has special components in there too to increase power efficiency, 0:06:02.480 --> 0:06:06.200 decrease power draw, and control multiple cameras that would be 0:06:06.240 --> 0:06:09.039 on the exterior of these glasses, and they would work 0:06:09.200 --> 0:06:11.400 like metas where you can look at items and ask 0:06:11.480 --> 0:06:14.320 it for context using Siri mark. 0:06:14.400 --> 0:06:18.360 Generally speaking, this is consistent with apple strategy on custom silicon. Right, 0:06:18.800 --> 0:06:21.840 many of the processes across the range of devices are 0:06:21.880 --> 0:06:26.680 Apple's own and I believe made by TSMC, fabricated by TSMC. 0:06:27.080 --> 0:06:29.240 Just explain Apple's footprint in that sense. 0:06:30.640 --> 0:06:32.760 Yeah, the Apple for footprint is that they have their 0:06:32.800 --> 0:06:36.360 own custom processors and basically every device they sell. They 0:06:36.520 --> 0:06:39.560 moved away from Intel in twenty twenty. For the Mac, 0:06:39.640 --> 0:06:42.320 the Mac now has these high end M series processors, 0:06:42.360 --> 0:06:45.320 the Vision Pro and the iPad of the M series processors. 0:06:45.360 --> 0:06:48.320 At this point, the iPhone and the lower and iPads 0:06:48.320 --> 0:06:50.640 have the A series processors. They make their own chips 0:06:50.680 --> 0:06:54.000 for AirPods for Apple watches, and so of course they're 0:06:54.040 --> 0:06:56.200 going to do it for the glasses as well as 0:06:56.240 --> 0:07:01.560 a significant product category within that vision brand in our likelihood, 0:07:01.760 --> 0:07:03.840 and they used here and C like you said, for 0:07:03.960 --> 0:07:07.120 that final manufacturing. But much of the design is done 0:07:07.200 --> 0:07:10.600 in house from Apple in their labs across Europe, across 0:07:10.640 --> 0:07:13.720 the United States, and they do have a license with 0:07:13.960 --> 0:07:17.480 ARM and they use fundamental underlying technologies from ARM. 0:07:17.920 --> 0:07:19.880 Yeah, many people talk to me about Apple in the 0:07:19.920 --> 0:07:22.600 context of it being a fabulous chip designer in its 0:07:22.640 --> 0:07:25.760 own right, which is a fascinating move. Bloomberg, Mark German, 0:07:25.760 --> 0:07:27.680 thank you very much. Now coming up, we're going to 0:07:27.720 --> 0:07:30.200 speak with the Lift CEO, David risher Is. The company 0:07:30.240 --> 0:07:33.960 posts better than expected gross bookings for the first quarter. 0:07:34.320 --> 0:07:36.080 This is Bloomberg Technology. 0:07:43.520 --> 0:07:44.520 Time now for talking tech. 0:07:44.560 --> 0:07:46.520 And first up, as you see shares a crowd strike 0:07:46.720 --> 0:07:51.520 lower today, US prosecutors regulators, they are proving senior executors 0:07:51.880 --> 0:07:55.600 over what may have been known by them about it's 0:07:55.640 --> 0:07:59.040 thirty two million dollar deal with Carasoft into the IRS. 0:07:59.360 --> 0:08:01.600 Now that's a quarter to sources. Investigators are looking into 0:08:01.640 --> 0:08:04.280 other transactions made by CrowdStrike and said to have. 0:08:04.320 --> 0:08:05.640 Questioned former employees. 0:08:06.120 --> 0:08:08.920 Plus TSMC rising today is the company posted a revenue 0:08:08.960 --> 0:08:11.400 jump of forty eight percent in April. This has companies 0:08:11.520 --> 0:08:15.360 increased purchases of essential components ahead of global tariffs. TSMC 0:08:15.520 --> 0:08:19.080 says that they see continued resilient demand from ai but 0:08:19.200 --> 0:08:21.920 recent surgeons in Taiwan's dollar that compression of the company's 0:08:21.920 --> 0:08:25.720 margins going forward, and Panasonic is cutting ten thousand jobs 0:08:25.760 --> 0:08:28.640 and an effort to boost profitability, shifting focus into growth 0:08:28.640 --> 0:08:31.480 areas now. The four percent workforce reduction can see five 0:08:31.480 --> 0:08:34.440 thousand employees in Japan and five thousand overseas. 0:08:33.880 --> 0:08:35.920 Personnel if they let go in the fiscal year. 0:08:36.240 --> 0:08:39.360 Panasonic expects about eight hundred and ninety five million dollars 0:08:39.400 --> 0:08:40.960 in restructuring charges this year. 0:08:41.320 --> 0:08:44.400 ED Let's Go Back to Technology earning shares of LIFT 0:08:44.480 --> 0:08:47.520 up around twenty percent so far today, on track for 0:08:47.520 --> 0:08:51.040 their biggest jumps since November, company posting a better than 0:08:51.080 --> 0:08:54.080 expected gross bookings of four point one six billion dollars, 0:08:54.400 --> 0:08:58.720 and Little Sweetener announced an expanded share by Back program. 0:08:59.160 --> 0:09:02.360 LIFT CEO Dave joins us for more. Good morning, David. 0:09:02.440 --> 0:09:05.560 There's something really interesting in your kind of forward looking 0:09:05.559 --> 0:09:08.840 strategy commentary on the cool Uber talks about something the same. 0:09:08.880 --> 0:09:12.760 There are parts of this country, America where ride share 0:09:13.120 --> 0:09:16.400 is less pervasive, people don't use as much, probably they 0:09:16.480 --> 0:09:17.280 drive their own car. 0:09:17.640 --> 0:09:22.199 You want to go after that market? Why and how so? 0:09:22.320 --> 0:09:26.199 The answer is, we've gotten really good at obsessing over 0:09:26.240 --> 0:09:28.880 our customers and we want to take it bigger and 0:09:28.920 --> 0:09:32.560 go bigger. I mean, look, this is our sixteenth consecutive. 0:09:31.960 --> 0:09:34.920 Quarter of growth. You know, we're a profitable. 0:09:34.480 --> 0:09:37.640 Company, We're you know, generating nine hundred million dollars of cash, 0:09:37.720 --> 0:09:40.920 and yet yet the rideshare market are still tiny. One 0:09:41.000 --> 0:09:43.320 hundred and sixty billion rides in the United States every 0:09:43.360 --> 0:09:45.439 year and we only do a couple three billion between 0:09:45.480 --> 0:09:47.680 the two of us. So there's so much opportunity. It 0:09:47.720 --> 0:09:49.000 really is better to be in the back of the 0:09:49.000 --> 0:09:50.920 car having someone else drive you, and we want to 0:09:51.000 --> 0:09:53.880 do it in places like Indianapolis and others where you know, 0:09:53.920 --> 0:09:56.480 the opportunities even bigger cash. 0:09:56.720 --> 0:09:59.160 When last year on which was just a few weeks ago, 0:09:59.559 --> 0:10:01.439 we were talk talking about M and A in Europe, 0:10:01.440 --> 0:10:04.680 and with respect, it was a modest deal. The buy 0:10:04.720 --> 0:10:09.160 back is clearly well received by your investors. Yeah, but 0:10:09.520 --> 0:10:12.200 that would indicate that you have some ability to do 0:10:12.360 --> 0:10:15.080 m and a going forward you know, do you see 0:10:15.120 --> 0:10:18.240 that in your capital plans? And if you did buy something, 0:10:18.240 --> 0:10:19.000 what would it be. 0:10:19.760 --> 0:10:22.959 So, so, first, thanks for acknowledging it's true. I mean, 0:10:22.960 --> 0:10:25.120 this is a business that is now generating nearly a 0:10:25.160 --> 0:10:27.800 billion of dollars of cash in the trailing twelve months. 0:10:27.840 --> 0:10:29.120 So that's a wonderful place to be. 0:10:29.960 --> 0:10:33.160 Again, huge thanks to the incredible team that has been 0:10:33.160 --> 0:10:35.520 working so dang hard to make this business not only 0:10:35.520 --> 0:10:37.560 great for customers, but great for shareholders as well. 0:10:38.200 --> 0:10:40.280 So now the question is, right, what are other opportunities? 0:10:40.320 --> 0:10:42.760 I would say our near term focus is making the 0:10:42.760 --> 0:10:44.800 cash that we've got, you know, putting it to work. 0:10:45.080 --> 0:10:47.080 As you say, we just acquired free Now, which will 0:10:47.120 --> 0:10:48.680 allow us to expand internationally. 0:10:49.320 --> 0:10:50.040 You know, nothing more. 0:10:49.920 --> 0:10:53.199 Obviously to announce right now, aside from the buyback, of course, 0:10:53.600 --> 0:10:55.079 but it's great to be in a strong position. We've 0:10:55.080 --> 0:10:57.040 got a strong balance sheet and a strong income statement, 0:10:57.120 --> 0:10:58.920 so it feels that's a good place to be and. 0:10:58.840 --> 0:11:00.680 It's a strong position that you manage to defend off 0:11:00.880 --> 0:11:05.120 engine capital, David, in terms of they were a pushy 0:11:05.320 --> 0:11:08.800 investor wanting changes potentially a board level, but they've withdrawn 0:11:08.880 --> 0:11:10.960 that because of what you've given to the investor base 0:11:11.080 --> 0:11:12.320 in terms of buybacks, David. 0:11:12.360 --> 0:11:13.320 Is that a cyber relief? 0:11:15.160 --> 0:11:17.720 I mean, you know, we talk to investors all the time. 0:11:19.320 --> 0:11:21.640 I would say maybe not so much the cyber relief 0:11:21.679 --> 0:11:24.400 as much as just it absolutely allows us to continue 0:11:24.400 --> 0:11:26.400 to focus on our riders and our drivers. 0:11:26.400 --> 0:11:27.280 That's sort of the big thing. 0:11:27.920 --> 0:11:30.080 But it's great that investors are responding so well to 0:11:30.160 --> 0:11:32.120 what it is that we're doing. Again, share buy back 0:11:32.240 --> 0:11:35.920 is great. You know, profitable growth, you know, quarter after quarter, 0:11:36.000 --> 0:11:36.480 that's great. 0:11:36.720 --> 0:11:38.160 And this is what I've always said, it's. 0:11:38.040 --> 0:11:40.960 Customer obsession that drives profitable growth, and we're sort of 0:11:40.960 --> 0:11:42.480 seeing that play out now. 0:11:42.640 --> 0:11:46.400 And that customer obsession drives innovation, drives autonomous vehicles. I 0:11:46.440 --> 0:11:48.680 know you're looking at Atlanta, You've got a partnership there. 0:11:49.040 --> 0:11:52.280 How much are you're going to see driverless vehicles automatically 0:11:52.280 --> 0:11:54.040 you're going to have safety drivers in the car. 0:11:54.240 --> 0:11:55.760 What is that going to look like as a pilot. 0:11:56.880 --> 0:11:59.000 Yeah, so this is a pilot that we're doing with 0:11:59.000 --> 0:12:02.240 main Mobility set back. Autonomous vehicles are going to come. 0:12:02.360 --> 0:12:04.640 Right they're here in San Francisco, you see them everywhere. 0:12:04.679 --> 0:12:07.600 They're obviously in La and Austin and other places as well. 0:12:07.880 --> 0:12:08.320 They'll come. 0:12:08.480 --> 0:12:10.720 It'll be many, many years before they're a big deal, 0:12:10.760 --> 0:12:13.160 but as they come, it's such a great opportunity for 0:12:13.240 --> 0:12:14.960 ride share and for a lyft because it allows us 0:12:15.000 --> 0:12:18.319 to you know, provide better service, you know, using different technologies. 0:12:18.559 --> 0:12:19.360 As you say, we'll be. 0:12:19.320 --> 0:12:22.040 Starting in Lantam in a couple of months, middle of 0:12:22.040 --> 0:12:24.200 the summer. We will start with a sort of a 0:12:24.240 --> 0:12:26.240 confidence driver, someone else in the car to kind of 0:12:26.240 --> 0:12:28.520 help make sure that people feel comfortable. 0:12:28.080 --> 0:12:29.000 With what's going on there. 0:12:29.160 --> 0:12:31.360 It'll be a fairly small scale pilot, but this is 0:12:31.360 --> 0:12:34.040 something it'll grow into Texas next year with a partnership 0:12:34.080 --> 0:12:36.200 with mobil I and others, and then we'll. 0:12:36.080 --> 0:12:37.760 Just keep building and building and building. 0:12:37.559 --> 0:12:40.120 To the point where drivers are driving millions of people 0:12:40.200 --> 0:12:42.600 and autonomous vehicles are driving millions of people as well. 0:12:42.760 --> 0:12:45.360 David, you're a technology CEO, and as such you must 0:12:45.400 --> 0:12:49.400 field questions on economics and the state of trade and travel. 0:12:50.920 --> 0:12:51.959 It's our favorite thing to do. 0:12:53.240 --> 0:12:56.360 Squ Uber reflected on the idea of cross border travel 0:12:56.400 --> 0:12:59.480 Canada into the US, the inbound travel into the US 0:12:59.520 --> 0:13:03.200 being soft business travel. People arrive at airports, are they 0:13:03.280 --> 0:13:04.960 or are they not doing ride share? What are you 0:13:05.080 --> 0:13:08.199 seeing through the consumer about the state of this economy. 0:13:08.559 --> 0:13:10.360 I don't say we're seeing strength. And I know a 0:13:10.360 --> 0:13:12.720 lot of people are trying to look granula where why? 0:13:13.360 --> 0:13:15.600 So I'll give you a couple of examples. Let's actually 0:13:15.600 --> 0:13:17.920 go back literally to earlier this week Sinkle demyle, right, 0:13:18.000 --> 0:13:20.400 that's not a holiday, that's necessarily a huge thing. But 0:13:20.440 --> 0:13:22.160 at the same time we saw one of our biggest 0:13:22.160 --> 0:13:24.400 sink of demios ever, it's a very very strong day. 0:13:24.480 --> 0:13:25.840 Let's go back to the end of March. 0:13:25.880 --> 0:13:27.920 Last week in March was actually our strongest week ever 0:13:27.960 --> 0:13:30.240 in terms of ride value. I think what we're seeing 0:13:30.280 --> 0:13:33.680 here is ride share has become a very sort of 0:13:34.000 --> 0:13:37.000 base staple part of so many people's lives that I 0:13:37.080 --> 0:13:40.480 don't really expect a sort of consumer sentiment fluctuates around 0:13:40.640 --> 0:13:42.960 to see that much difference. I'll talk about airports for 0:13:43.040 --> 0:13:45.640 just a second, because you asked airports basically quarter to 0:13:45.760 --> 0:13:49.040 quarter are flat. It is true, consumer, excuse me, the 0:13:49.040 --> 0:13:51.240 commute is going up faster, so if you look at 0:13:51.240 --> 0:13:53.240 it that way, consumer's growing a little bit faster. 0:13:53.480 --> 0:13:54.920 Excuse me, commute, I keep saying that. 0:13:55.040 --> 0:13:57.920 But you know, again, even when you look at airports, gosh, 0:13:57.960 --> 0:13:59.840 it's only one in five people use rightdchhair to get 0:13:59.880 --> 0:14:02.080 to reports in the first place. That means eighty percent 0:14:02.160 --> 0:14:04.000 is still out there for sort of the you know, 0:14:04.360 --> 0:14:06.440 the picking. So I think our big focus is trying 0:14:06.480 --> 0:14:08.680 to expand the market. I don't think that the macro 0:14:08.720 --> 0:14:10.120 stuff is a big deal right now for us. 0:14:10.559 --> 0:14:12.280 You're growing in Canada, David. 0:14:12.320 --> 0:14:14.439 And it's interesting I've asked this time and time again 0:14:14.840 --> 0:14:17.280 a start of IBM asked, a vouba ask of a view. 0:14:17.679 --> 0:14:20.200 Is there any impact from being an American brand going 0:14:20.200 --> 0:14:22.280 into a country such as Canada right now? 0:14:22.320 --> 0:14:25.920 Because we are hearing of pushback thirty seconds you know, it's. 0:14:25.760 --> 0:14:28.000 So interesting, No, is the real answer. 0:14:28.040 --> 0:14:31.720 In fact, we've just got authorization to open in Quebec, 0:14:32.040 --> 0:14:34.000 in the province of Quebec, which which we might have 0:14:34.040 --> 0:14:36.080 wondered whether it was going to happen given everything going on. 0:14:36.200 --> 0:14:38.880 So no, we've actually seen acceptance. Actually, Toronto's a big 0:14:38.880 --> 0:14:39.320 city for. 0:14:39.320 --> 0:14:42.200 Us, going super well, David Risher, so great to catch 0:14:42.280 --> 0:14:43.520 up with you Thinbous some the numbers. 0:14:43.520 --> 0:14:44.240 We appreciate it. 0:14:44.440 --> 0:14:53.160 Lift to see it is a pleasure, Thanks you guys. 0:14:55.800 --> 0:14:59.240 Pinterest ches up after the company reported second quarter revenue 0:14:59.280 --> 0:15:03.040 guidance that beat expectations and told analysts the platform was 0:15:03.120 --> 0:15:07.880 leveraging AI to attract advertisers. CEO Bill Ready spoke to Bloomberg. 0:15:07.480 --> 0:15:10.280 Earlier, pintresses where gen Z goes to shop. 0:15:10.400 --> 0:15:13.280 Gen Z is now our largest fastest growing demographic, over 0:15:13.320 --> 0:15:16.200 forty percent of our users. And you know they're coming 0:15:16.280 --> 0:15:19.000 here to shop. We're giving them a great shopping destination. 0:15:19.880 --> 0:15:22.400 But you know that has allowed us to deliver great 0:15:22.840 --> 0:15:26.880 performance for our advertisers. We've delivered a performance advertising platform 0:15:27.080 --> 0:15:30.240 where advertisers can get clicks and conversions and great performance. 0:15:30.240 --> 0:15:32.520 We're giving them AI enabled tools, so it's easier than 0:15:32.560 --> 0:15:35.560 ever for them to go create campaigns on Pinterest and 0:15:35.840 --> 0:15:38.240 see really great returns on that. So that's the other 0:15:38.280 --> 0:15:39.960 side of the business is that we've made Pinterest a 0:15:39.960 --> 0:15:42.880 shopping destination. Eighty five percent of our users come to 0:15:42.960 --> 0:15:46.160 us directly, and then we connect them with advertisers to 0:15:46.200 --> 0:15:48.640 make it really easy for advertisers to connect with those users. 0:15:48.640 --> 0:15:51.400 In this moment where they're in market looking for something 0:15:51.400 --> 0:15:53.560 to buy but haven't decided what to buy. That's a 0:15:53.600 --> 0:15:56.760 great moment for those two to meet, and we see 0:15:56.760 --> 0:15:59.960 that continue to accelerate. We're all time highs on users 0:16:00.280 --> 0:16:03.000 and all time highs on depth of engagement per user, 0:16:03.280 --> 0:16:06.480 really driven by AI and the personalization there and then 0:16:06.480 --> 0:16:08.920 how we're connecting shoppers and sellers. 0:16:09.040 --> 0:16:11.760 So, is that keeping the likes of Timu and Sin 0:16:11.920 --> 0:16:14.440 who a lot of those gen zs are going to 0:16:14.800 --> 0:16:16.040 buy on your platform? 0:16:16.360 --> 0:16:18.800 Is that sticking around because many had worried. 0:16:18.560 --> 0:16:21.520 Because of the towers, because of the difficulty accessing the 0:16:21.600 --> 0:16:24.120 US and consumer in terms of price point, what we'd 0:16:24.160 --> 0:16:26.560 see retrenchment in terms of ads from those companies. 0:16:26.720 --> 0:16:29.200 Yeah, Well, we're a global platform. You know, we're overre 0:16:29.240 --> 0:16:32.480 you know, five hundred and seventy million users. Eighty percent 0:16:32.520 --> 0:16:34.720 of those are outside the US, and so we noted 0:16:34.760 --> 0:16:38.040 as others that for Asian cross border sellers, you know, 0:16:38.080 --> 0:16:40.200 that has slowed down coming into the US, as others 0:16:40.200 --> 0:16:43.080 have noted as well. But we're seeing those sellers sell 0:16:43.160 --> 0:16:45.120 more globally and we're helping them to connect to other 0:16:45.160 --> 0:16:48.960 markets around the world. Here in the US consumers are resilient. 0:16:49.560 --> 0:16:51.800 You know, there's lots of public spending information that says 0:16:51.880 --> 0:16:54.160 that consumers are still shopping. We went through a major 0:16:54.200 --> 0:16:56.600 supply chain destruction just a few years ago during the pandemic, 0:16:57.040 --> 0:16:59.040 and you know, we all saw, you know, things are 0:16:59.040 --> 0:17:02.360 out of stock and consumers found other ways to buy, 0:17:02.400 --> 0:17:03.200 other things to buy. 0:17:03.560 --> 0:17:05.040 And we see that happening on our platform. 0:17:05.080 --> 0:17:08.399 That while you have things like budget conscious searches like 0:17:08.800 --> 0:17:12.840 you know, budget friendly recipes or you know budget you know, 0:17:12.920 --> 0:17:16.320 party decorations, budget party favors, and those kinds of things 0:17:16.359 --> 0:17:19.120 up two hundred percent plus here on here. People find 0:17:19.160 --> 0:17:21.840 substitute products, they find other ways to go sort of 0:17:21.840 --> 0:17:25.160 bring delight into their life, and we're a great place 0:17:25.200 --> 0:17:26.520 to help them do that, in a great place for 0:17:26.560 --> 0:17:30.560 advertisers to see these shifting consumer trends. 0:17:30.600 --> 0:17:33.320 Bill Ready speaking to us earlier, and let's just stick 0:17:33.359 --> 0:17:36.080 with earnings, with the consumer sentiment as well. Let's go 0:17:36.119 --> 0:17:38.480 to buy now, pay later company. A firm look shares 0:17:38.520 --> 0:17:40.880 our trading lower, but they actually increase guidance. 0:17:40.920 --> 0:17:42.440 A firm CEO, Max Livtin is. 0:17:42.400 --> 0:17:44.840 Here with US analysts calling this a knee jerk reaction 0:17:45.080 --> 0:17:48.359 and ultimately maybe some lofty expectations. But are you, like Bill, 0:17:48.480 --> 0:17:50.960 are you still seeing the consumer spending right now? 0:17:51.280 --> 0:17:53.119 We are, We really are, He's He's exactly at A 0:17:53.160 --> 0:17:56.080 couldn't agree more. US consumer has been resilient. They found 0:17:56.160 --> 0:17:58.159 new things to buy, new things to be excited about. 0:17:58.680 --> 0:18:01.240 We're seeing really strong growth, which is posted three six 0:18:01.240 --> 0:18:04.440 percent GMB growth and that's a third quarter in a 0:18:04.480 --> 0:18:08.960 row acceleration. So the rumors of US consumer decline are 0:18:08.960 --> 0:18:10.520 somewhat exaggerated, it seems. 0:18:10.600 --> 0:18:12.920 And maybe it's lofty expectations. 0:18:12.960 --> 0:18:14.240 I'm sure you're going to tell me you don't check 0:18:14.280 --> 0:18:15.879 in on the shares very much, but when you do 0:18:15.920 --> 0:18:18.680 see sentiment like this on the back of your numbers, what. 0:18:18.640 --> 0:18:21.720 Do you think investors are shying away from? Is it competition? 0:18:23.240 --> 0:18:23.399 You know? 0:18:23.880 --> 0:18:26.880 Hard for me to tell. I try not to check 0:18:26.920 --> 0:18:29.360 too often. I primarily care about it from the point 0:18:29.359 --> 0:18:31.320 of view of the team feeling that their hard work 0:18:31.440 --> 0:18:32.960 is actually understood by the market. 0:18:32.960 --> 0:18:34.880 And I think it. 0:18:34.720 --> 0:18:38.960 Took our consumers and our merchant partners about a decade 0:18:39.040 --> 0:18:41.760 to fully grasp just how different and how a creative 0:18:41.760 --> 0:18:45.399 we are to their sales, and just how powerful this 0:18:45.440 --> 0:18:48.240 whole new idea is and then it just happened. And 0:18:48.280 --> 0:18:50.879 so you know they say slowly at first, then all 0:18:50.920 --> 0:18:53.919 at once. That's my that's my hope for the market. 0:18:55.600 --> 0:18:57.920 Max. Hello, let's talk about Costco. 0:18:58.480 --> 0:19:01.639 You have this arrangement with Costco to allow a Costco 0:19:01.880 --> 0:19:05.040 costumer to pay over time. I am a Costco member 0:19:05.320 --> 0:19:08.919 and have a City credit card, and the benefit of 0:19:08.920 --> 0:19:12.120 the card is that it gives me five percent cash 0:19:12.160 --> 0:19:14.919