WEBVTT - Twitter Making Cuts, Path Forward for Self-Driving Vehicles 0:00:02.200 --> 0:00:05.520 From the heart of where innovation, money and power Colli 0:00:06.320 --> 0:00:10.840 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.920 --> 0:00:27.200 Emily jay I. Remember we check at San Francisco and 0:00:27.240 --> 0:00:30.400 this is Bloomberg Technology coming up the next hour. Twitter 0:00:30.960 --> 0:00:35.320 is shrinking Elon Musk, laying off half the workforce around 0:00:35.400 --> 0:00:40.239 thirty seven h people as he restructures the entire company. Meantime, 0:00:40.280 --> 0:00:44.760 brands continue to mull ads on Twitter, and Musk is 0:00:44.800 --> 0:00:47.640 doing away with policies like a once a month rest 0:00:47.720 --> 0:00:52.360 day and war plus self driving technology under the regulatory microscope. 0:00:52.360 --> 0:00:54.560 As we ached closer to a future with driverless cars, 0:00:54.760 --> 0:00:57.840 we talked about the challenging road ahead with Aurora, CEO 0:00:57.920 --> 0:01:02.160 of Chris Urmson, and another tough day for Peloton after 0:01:02.200 --> 0:01:06.720 revenue fell way short of expectations. Still, CEO Barry McCarthy 0:01:06.840 --> 0:01:10.080 is confident to turnaround plan will work sooner than expected. 0:01:10.360 --> 0:01:13.520 We will discuss all of that in a moment, but 0:01:13.560 --> 0:01:17.160 first I want to dig into those layoffs that Bloomberg 0:01:17.160 --> 0:01:19.520 has learned will happen at Twitter. Musk planning to lay 0:01:19.520 --> 0:01:24.480 off about thirty seven hundred people, half the current workforce. 0:01:24.520 --> 0:01:26.520 Our sources telling us he plans to tell the workers 0:01:26.520 --> 0:01:29.800 who will be affected on Friday. Bloomberg's Kurt Wagner of 0:01:29.840 --> 0:01:32.959 course critical along with ed to our reporting on all 0:01:32.959 --> 0:01:35.800 of these latest Twitter developments. Kurt, where are these jobs 0:01:35.840 --> 0:01:38.200 going to come from? What do we know? Yeah? I 0:01:38.200 --> 0:01:41.720 mean this is company wide. Um, it's not necessarily going 0:01:41.760 --> 0:01:43.920 to be in any particular area. Well, the one thing 0:01:43.959 --> 0:01:46.040 that Ellen has kind of stressed that the product and 0:01:46.120 --> 0:01:49.480 engineering seemed to be where his focuses. So it's possible 0:01:49.800 --> 0:01:52.200 that you know, that might be a little bit less 0:01:52.200 --> 0:01:55.680 impacted than something like, um, you know, trust and safety 0:01:55.760 --> 0:01:59.120 or policy legal things like that. But you know, this 0:01:59.240 --> 0:02:02.680 is a part of his strategy to try and get 0:02:02.680 --> 0:02:05.240 the company into a better financial situation. Right, he paid 0:02:05.280 --> 0:02:08.440 forty four billion dollars for Twitter. They now have these 0:02:08.480 --> 0:02:10.360 huge debt payments that they're going to have to start 0:02:10.400 --> 0:02:13.280 paying off for these interest payments. Um, and you know 0:02:13.560 --> 0:02:18.280 part of his plan is let's cut head count. So 0:02:18.760 --> 0:02:21.240 how are Twitter employees feeling right now? I mean, the 0:02:21.280 --> 0:02:23.560 acts is going to come down on Friday, and nobody 0:02:23.600 --> 0:02:26.560 knows if they're going to be cut yet. That's exactly right. 0:02:26.560 --> 0:02:29.000 And they're not only that, Emily, they haven't heard from 0:02:29.200 --> 0:02:31.760 Elon Musk at all since the deal clothes, they haven't 0:02:31.760 --> 0:02:34.840 heard from any other leadership, right. Everyone's kind of talking 0:02:34.840 --> 0:02:38.160 with their managers, but there's been no company wide messaging 0:02:38.280 --> 0:02:43.240 at all. All of the C suite um, you know, CEO, CMO, CFO, 0:02:43.400 --> 0:02:46.600 all of those folks were fired last week or early 0:02:46.680 --> 0:02:49.519 this week. So if you're employee at Twitter, you're getting 0:02:49.560 --> 0:02:53.640 your information from places like Bloomberg or from other media outlets, right, 0:02:53.720 --> 0:02:56.600 and that's where you're finding out what's happening at your 0:02:56.600 --> 0:02:58.760 own company. And so that's quite unsettling for a lot 0:02:58.760 --> 0:03:01.000 of people, especially when you're sitting around wondering, am I 0:03:01.040 --> 0:03:02.600 going to be employed by the end of the week. 0:03:02.919 --> 0:03:05.560 So this is a stressful time internally, to say the least. 0:03:06.000 --> 0:03:08.399 Um and a lot of employees we're seeing are sort 0:03:08.440 --> 0:03:10.200 of looking out for each other, trying to give best 0:03:10.240 --> 0:03:12.480 tips on what happens when you get laid off. Hey, 0:03:12.560 --> 0:03:14.880 let let me make references for you, that kind of thing. 0:03:14.919 --> 0:03:16.360 You know, they're trying to to take care of each 0:03:16.400 --> 0:03:18.280 other because the company doesn't seem to be doing it 0:03:18.320 --> 0:03:22.960 for them. Meantime, we've just got this headline from Dow 0:03:23.080 --> 0:03:26.239 Jones at a number of pretty prominent advertisers are pausing 0:03:26.280 --> 0:03:28.359 ads on Twitter. I mean, do you think that this 0:03:28.520 --> 0:03:31.079 is going to become a bigger thing? I mean, we 0:03:31.160 --> 0:03:34.359 talked about the potential for a boycott. Does it get 0:03:34.400 --> 0:03:37.120 to that, Well, this is what I think we're talking 0:03:37.120 --> 0:03:40.360 about yesterday, and I think that the chance of a 0:03:40.400 --> 0:03:43.040 boycott not only seems possible, but I do think it 0:03:43.080 --> 0:03:45.360 seems like a really big deal. And again, it's because 0:03:45.840 --> 0:03:48.160 the time we saw this happen with Facebook, all the 0:03:48.280 --> 0:03:51.400 key executives that the todd the Sheryl Sandberg's and those 0:03:51.440 --> 0:03:53.360 at the top of the company on the business side, 0:03:53.680 --> 0:03:56.200 they went out and they did damage control for days, right, 0:03:56.240 --> 0:03:58.680 And we're just not going to see that at Twitter 0:03:58.680 --> 0:04:00.480 because all the people at the top of a company 0:04:00.480 --> 0:04:03.920 are gone. And so when you have these big advertisers, 0:04:04.120 --> 0:04:07.760 and Twitter is very much a relationship driven advertising business 0:04:07.760 --> 0:04:10.320 because they don't have that, you know, very intimate direct 0:04:10.400 --> 0:04:13.640 response type stuff. When you have these big advertisers really 0:04:13.920 --> 0:04:16.320 being cautious or putting things on pause, you don't have 0:04:16.400 --> 0:04:18.600 the people inside of Twitter to necessarily go to them 0:04:18.640 --> 0:04:21.560 and reassure them like some of these other big ad 0:04:21.560 --> 0:04:23.320 companies might. So I think it's a I think it's 0:04:23.480 --> 0:04:27.200 a dangerous thing that's happening here. And tell us a 0:04:27.200 --> 0:04:30.160 little bit about what we know about how decisions are 0:04:30.200 --> 0:04:33.600 being made on the inside, who's making the decisions, and 0:04:33.640 --> 0:04:39.760 how things that are being communicated are actually being communicated. Yeah, well, 0:04:39.800 --> 0:04:42.360 we know that Ellen is making the decisions, right, and 0:04:42.400 --> 0:04:44.400 the best I can I can tell is that a 0:04:44.400 --> 0:04:47.719 lot of things are being done very quickly and sort 0:04:47.760 --> 0:04:50.520 of haphazardly. Right, I mean, even this change, they're going 0:04:50.560 --> 0:04:53.680 to raise the price of their subscription product to eight dollars, 0:04:53.680 --> 0:04:55.960 and they're going to add some new features, including the 0:04:56.000 --> 0:04:59.040 blue check verification. You know, we saw him sort of 0:04:59.080 --> 0:05:02.839 like work shopping this publicly on Twitter, right, He's like tweeting, Hey, 0:05:02.920 --> 0:05:04.599 would you pay for this? How much would you pay? 0:05:04.680 --> 0:05:06.320 What features would you want? And then all of a sudden, 0:05:06.360 --> 0:05:08.880 he just announced it the next day. And so we're 0:05:08.920 --> 0:05:11.760 seeing there's a very small group of folks, including some 0:05:11.880 --> 0:05:15.000 venture capitalists, who are sort of advising him here. But 0:05:15.080 --> 0:05:17.520 really it feels like Ellen is sort of um, you know, 0:05:18.240 --> 0:05:20.320 kind of making this up as he goes along. As 0:05:20.320 --> 0:05:23.080 I mentioned, there's not a lot of um messaging coming 0:05:23.120 --> 0:05:24.880 from the top of the company at all. So unless 0:05:24.880 --> 0:05:28.479 you're in a particular group working on a specific problem 0:05:28.520 --> 0:05:31.200 for him, you don't really know what's happening at the company. 0:05:31.320 --> 0:05:32.960 All right, Kurt, and I'll let you get back to 0:05:33.000 --> 0:05:35.480 work in the phone signal, your Twitter, d M s 0:05:35.520 --> 0:05:37.720 and all the ways you're breaking all this news. Bloomberg's 0:05:37.760 --> 0:05:51.360 Kurt Wagner, thank you for the update. Last month, a 0:05:51.440 --> 0:05:54.479 venture capital firm CRV announced one and a half billion 0:05:54.520 --> 0:05:57.760 dollars and funding across two funds, which means more dry 0:05:57.760 --> 0:06:00.880 powder to take advantage of low value tions. But how 0:06:00.960 --> 0:06:03.800 are firms thinking about how to deploy all that cash 0:06:03.839 --> 0:06:07.359 and potentially very long downturn. Kristan Baker Spone is a 0:06:07.400 --> 0:06:11.080 general partner at CRV and joins me now. Kristen, how 0:06:11.240 --> 0:06:15.279 is crvs strategy evolving in the midst of this downturn? 0:06:15.440 --> 0:06:18.159 What are you all talking about around the partner table. 0:06:19.440 --> 0:06:22.279 Around the partner table, we're talking about how we're continuing 0:06:22.279 --> 0:06:24.760 to play to our strengths. CRV has been in business 0:06:24.800 --> 0:06:28.000 for over fifty two years and focused on backing founders 0:06:28.040 --> 0:06:31.160 at the early stages. We raised one point five billion dollars, 0:06:31.160 --> 0:06:33.920 as you mentioned, to continue to do that and invested 0:06:33.960 --> 0:06:36.839 the earliest stages, partnering with founders that are building game 0:06:36.920 --> 0:06:42.359 changing companies. So are you waiting for valuations to come down? 0:06:42.400 --> 0:06:45.520 And are you finding enough places to put that cash 0:06:45.600 --> 0:06:49.839 given so many companies out there are struggling. We're seeing 0:06:49.920 --> 0:06:52.640 valuations compressed across the board. You even just mentioned some 0:06:52.760 --> 0:06:56.239 books out in the public markets that are seeing valuations compress, 0:06:56.640 --> 0:06:59.080 and we're seeing that play out again across the private 0:06:59.080 --> 0:07:01.600 sector as well. That being said, at the early stages, 0:07:01.640 --> 0:07:03.880 we're backing founders that are in this journey for the 0:07:03.920 --> 0:07:06.880 long haul. And as someone who focuses on health tech, 0:07:07.240 --> 0:07:10.920 healthcare isn't completely recession proof, but it's definitely a defensive 0:07:10.960 --> 0:07:13.400 place to be in the market where there's continued to 0:07:13.480 --> 0:07:18.760 be spend an innovation and technology adoption. So let's talk 0:07:18.800 --> 0:07:22.080 about health tech because I know that's your focus. Is 0:07:22.120 --> 0:07:25.280 it as cool as it was in the middle of 0:07:25.320 --> 0:07:28.520 the pandemic or not? Well, I continue to think it's 0:07:28.640 --> 0:07:31.120 very cool. That being said, I think that there was 0:07:31.240 --> 0:07:34.720 a really interesting we had a watershed moment during the 0:07:34.760 --> 0:07:37.520 pandemic where there were a number of trends that were 0:07:37.560 --> 0:07:41.600 already happening across whether it's consumerism and healthcare adoption of 0:07:41.640 --> 0:07:46.440 technology bringing AI into healthcare delivery that the pandemic helped unlock, 0:07:46.920 --> 0:07:50.240 and that activation energy and that pent up demand was released. 0:07:50.640 --> 0:07:54.320 Now as the market has cooled, we're continuing to see 0:07:54.320 --> 0:07:57.360 those trends play out, but at a much more at 0:07:57.360 --> 0:08:02.200 a much more um reasonable pay ace of technology adoption. 0:08:02.600 --> 0:08:04.800 A few companies that a highlight, you know, one being 0:08:04.840 --> 0:08:06.960 a company Wheel. You just had the logo up on 0:08:07.000 --> 0:08:11.200 the screen. Weigel is in the health, telehealth and marketplace 0:08:11.360 --> 0:08:15.960 space where it's helping unlock telehealth for large tech companies, 0:08:16.000 --> 0:08:18.600 for large providers as well as for companies that are 0:08:18.600 --> 0:08:21.160 trying to put great care in the hands of consumers 0:08:21.200 --> 0:08:26.800 like you and me. So what is it about health 0:08:26.920 --> 0:08:29.680 tech that you know specifically? It's like to you. We 0:08:29.760 --> 0:08:34.040 have Apple coming into this, Google, Amazon trying to get 0:08:34.040 --> 0:08:36.760 in to health tech. Is that a threat that big 0:08:36.800 --> 0:08:40.679 tech giants want in or is that an opportunity? I 0:08:40.760 --> 0:08:43.240 think it's an opportunity. We're seeing a number of large 0:08:43.280 --> 0:08:47.280 players come into the space. You mentioned Amazon buying one Medical. 0:08:47.440 --> 0:08:51.080 We're hearing rumors of Apple getting into the health insurance game. 0:08:51.360 --> 0:08:53.920 We're seeing Google continue to play in the data space. 0:08:54.240 --> 0:08:57.840 I think it's a recognition of how technology has been 0:08:58.360 --> 0:09:01.080 in healthcare bit of a laggered into story um and 0:09:01.120 --> 0:09:04.360 there's so much opportunity to bring healthcare into the hands 0:09:04.400 --> 0:09:08.040 of not only clinicians but also individuals like you and me, 0:09:08.120 --> 0:09:10.160 in order to bring us the care that we need 0:09:10.200 --> 0:09:12.800 when we need it, so many of us. You know, 0:09:12.880 --> 0:09:15.360 for the very first time during the pandemic, did at 0:09:15.400 --> 0:09:19.120 home Diagnostics had our first telehealth visit. But there's also 0:09:19.160 --> 0:09:22.440 a huge opportunity to drive better efficiency in the care 0:09:22.480 --> 0:09:28.000 delivery system across the board. Meantime, more broadly, the world 0:09:28.120 --> 0:09:31.760 is falling apart and Silicon Valley is kind of crumbling. 0:09:31.800 --> 0:09:34.160 We've seen layoffs across the board. We just talked about 0:09:34.559 --> 0:09:39.240 thirty people about to lose their jobs at Twitter. Does 0:09:39.280 --> 0:09:45.120 this how broader ramifications on the startup ecosystem. They're definitely 0:09:45.160 --> 0:09:48.280 broad our immifications across the startup ecosystem, and that's why 0:09:48.400 --> 0:09:51.040 you know the breadth and depth of the firm like CRV, 0:09:51.440 --> 0:09:54.160 where we've partnered at the early stage, but also seeing 0:09:54.480 --> 0:09:57.040 a number of different ups and downs in the market. 0:09:57.320 --> 0:09:59.720 And this is where you know, we're seeing leaders make 0:09:59.760 --> 0:10:02.760 really tough decisions and the leaders are that are making 0:10:02.800 --> 0:10:06.000 tough decisions, are focusing not just on growth. Growth is 0:10:06.400 --> 0:10:10.360 necessary but not sufficient. How are they focusing and investing 0:10:10.360 --> 0:10:12.640 in their companies and in the future R and D 0:10:13.200 --> 0:10:17.080 as well as the growth to drive scalable business models 0:10:17.160 --> 0:10:19.680 and build the game changing companies that were excited to 0:10:19.720 --> 0:10:24.000 continue to back. So what advice are you giving startup 0:10:24.000 --> 0:10:28.240 founders right now given these tough market conditions. As a 0:10:28.280 --> 0:10:30.320 board member and a partner to many of the founders 0:10:30.360 --> 0:10:32.559 that I work with, I'm trying to help them see 0:10:32.600 --> 0:10:36.040 around corners and see what's coming down the pike. And 0:10:36.160 --> 0:10:38.560 I think one of the key things that founders are 0:10:38.559 --> 0:10:41.720 focusing on is not just how can they have clear 0:10:41.760 --> 0:10:45.079 eyes and continue to focus on their business but also 0:10:45.120 --> 0:10:48.800 make the tough decisions. You know, oftentimes, uh, it can 0:10:48.800 --> 0:10:51.720 be it can be tempting to continue to want to 0:10:51.720 --> 0:10:54.040 see the world play out. But what I see are 0:10:54.040 --> 0:10:56.320 those folks that are those founders that are making the 0:10:56.360 --> 0:10:59.800 tough decisions with clear eyes, with advice from their executive 0:10:59.800 --> 0:11:03.040 teams as well as their investor partners, are going to 0:11:03.120 --> 0:11:05.000 be the ones that cannot just weather the storm, but 0:11:05.040 --> 0:11:10.200 hopefully emerge even stronger. So talk to me a little 0:11:10.200 --> 0:11:12.360 bit then about the founders you think that will or 0:11:12.400 --> 0:11:14.480 can be successful at a time like this. I mean 0:11:14.520 --> 0:11:17.320 people are calling this, you know, dot com bust two 0:11:17.360 --> 0:11:19.640 point oh. I mean this could go down in the 0:11:19.760 --> 0:11:24.400 history books as a tectonic shift in you know, the industry. 0:11:24.440 --> 0:11:26.600 You know, the companies that survive and the companies that 0:11:26.640 --> 0:11:31.360 do not. We continue to focus on backing not only 0:11:31.400 --> 0:11:34.160 passionate founders, but Emily, you just mentioned how tough the 0:11:34.200 --> 0:11:36.600 times are. The word that comes to mind is grit. 0:11:36.920 --> 0:11:41.120 Are you founders and companies that can be gritty and 0:11:41.200 --> 0:11:44.480 not just as I mentioned, move through this time, but 0:11:44.559 --> 0:11:48.880 potentially emerge stronger. I also look for founders that are beacons, 0:11:48.880 --> 0:11:51.360 that are beacons for talent, that will continue to be 0:11:51.360 --> 0:11:54.880 beacons for customers and for capital even in the tough times. 0:11:54.920 --> 0:11:57.240 I think we're going to continue to see investment in 0:11:57.360 --> 0:12:01.160 really high quality teams and really high quality businesses. Those 0:12:01.160 --> 0:12:03.960 aren't going away. Um, what we're seeing is that flight 0:12:04.000 --> 0:12:06.600 towards that really high quality where there's growth but also 0:12:06.640 --> 0:12:11.000 efficient growth to building these companies. And I know you 0:12:11.000 --> 0:12:13.160 know you obviously you also worked in banking. You helped 0:12:13.160 --> 0:12:16.240 take some companies public. What is your sense of how 0:12:16.240 --> 0:12:18.600 long this downturn last? You know, how long are we 0:12:18.640 --> 0:12:21.160 in for here? Is it six months? Is it eighteen? 0:12:21.280 --> 0:12:26.000 Is it three years? Well, you know, I am continuing 0:12:26.040 --> 0:12:29.720 to be continuously optimistic that will will make our way through. 0:12:29.760 --> 0:12:32.959 That being said, planning for a bit of a stormy 0:12:33.000 --> 0:12:35.920 weather ahead. So, um, you know, your guess is as 0:12:35.960 --> 0:12:38.280 good as mine in terms of how long this will last. 0:12:38.320 --> 0:12:41.320 But I think we're continuing to invest in companies and 0:12:41.360 --> 0:12:44.880 work with founders that are seeing not just a brightness 0:12:44.960 --> 0:12:48.600 on the horizon, but hopefully continuing to work through these storms. Um, 0:12:48.600 --> 0:12:50.280 my guess is we're going to be in this for 0:12:50.400 --> 0:12:53.440 a considerable amount of time, and so having folks that 0:12:53.440 --> 0:12:55.880 are going to continue to focus on the fundamentals of 0:12:55.920 --> 0:12:59.200 their business, keep the main thing, the main thing, and 0:12:59.280 --> 0:13:03.600 build towards the future. Alright, keep the main thing the 0:13:03.640 --> 0:13:06.840 main thing. We'll remember that. Kristin Baker's phone, general partner 0:13:07.160 --> 0:13:11.120 at CRV, Thank you so much for stopping by. All Right, 0:13:11.320 --> 0:13:16.640 coming up, Peloton continuing to struggle, but the CEO still upbeat. 0:13:16.960 --> 0:13:33.080 We'll explain why next. This is Bloomberg Peloton rebounding after 0:13:33.200 --> 0:13:36.840 tumbling earlier with the company posting a weaker forecast than expected, 0:13:36.920 --> 0:13:40.400 even as the CEO declared it's meeting its own timeline 0:13:40.440 --> 0:13:43.880 for turning the fitness company around. Joining us now Bloomberg, 0:13:43.960 --> 0:13:48.480 Smart German Mark Uh talk to us about what's going 0:13:48.520 --> 0:13:51.959 on here. Investors clearly don't like what they see. Yeah, 0:13:52.000 --> 0:13:54.880 we got this morning was the definition of a mixed 0:13:54.880 --> 0:13:59.280 earnings report or PR putting its fingerprints over some numbers here. 0:13:59.320 --> 0:14:01.240 So if you look at the numbers, things are not 0:14:01.320 --> 0:14:04.480 so great. You're seeing a revenue forecasts as a client 0:14:04.559 --> 0:14:07.839 about thirty seven percent UH in the current quarter. That's 0:14:07.840 --> 0:14:10.680 the second fiscal quarter for Peloton. On the other hand, 0:14:10.760 --> 0:14:14.040 you have a letter from Barry McCarthy, Peloton CEO, saying 0:14:14.080 --> 0:14:16.440 that the ship is starting to turn. That is my 0:14:16.520 --> 0:14:20.760 impression as well. You are seeing some positive direction happening 0:14:20.760 --> 0:14:23.600 in some of these numbers. Gross margins have improved over 0:14:23.640 --> 0:14:26.920 the past couple quarters. Free cash flow has improved, but 0:14:27.040 --> 0:14:30.600 we don't like our the revenue numbers, specifically for hardware, 0:14:30.840 --> 0:14:33.960 they're hard hardware revenue numbers continue to fall while their 0:14:34.000 --> 0:14:37.000 subscription numbers continue to climb. The good news there is 0:14:37.040 --> 0:14:41.080 you see usages continuing. Churn is very low. Subscriptions are continuing, 0:14:41.240 --> 0:14:43.480 but people are not buying the hardware. To me, this 0:14:43.560 --> 0:14:46.080 raises the question why is Peloton in the hardware business 0:14:46.120 --> 0:14:49.000 at all? Right? Why not completely pivot the company away 0:14:49.040 --> 0:14:52.320 to putting its tablet on third party bikes? As we know, 0:14:52.480 --> 0:14:55.720 Peloton probably has the best content, probably has the best 0:14:55.720 --> 0:14:59.640 software in the hardware bike in treadmill space. Why not 0:15:00.040 --> 0:15:02.120 us get rid of your failing hardware business and make 0:15:02.160 --> 0:15:04.880 a really big subscription business. So I think that's where 0:15:04.880 --> 0:15:08.320 the company may eventually go. So clearly some really bad 0:15:08.400 --> 0:15:11.120 news on overall revenue, but some good news in terms 0:15:11.160 --> 0:15:13.320 of how the company is framing what it's calling a 0:15:13.360 --> 0:15:17.800 turnaround and on the subscription front. How do we measure 0:15:17.800 --> 0:15:22.160 whether the company is really beating its own timeline? Do 0:15:22.200 --> 0:15:25.320 you agree? I mean, there's really no way to measure 0:15:25.600 --> 0:15:27.280 if it's beating its own timeline. We have to take 0:15:27.280 --> 0:15:30.200 their word for it, right. Barry McCarthy says his timeline 0:15:30.240 --> 0:15:32.640 was longer than the one year. He says that you 0:15:32.680 --> 0:15:36.000 know this has taken right. Remember he joined in February 0:15:36.080 --> 0:15:39.080 and he's really pulled the company apart. You've laid off 0:15:39.120 --> 0:15:44.240 thousands of people already, You've outsourced manufacturing, you've outsourced customer service, 0:15:44.560 --> 0:15:48.200 you've outsourced deliveries. Right, So they pulled every lever possible. 0:15:48.320 --> 0:15:50.960 They've run the company into the ground and really starting 0:15:51.280 --> 0:15:53.480 you know, trying to start over. But we don't see 0:15:53.520 --> 0:15:56.160 the positive impact there on the stock. Obviously their town 0:15:56.240 --> 0:15:59.240 you know, over at this point in the last year 0:15:59.320 --> 0:16:02.600 or so. But you are seeing some positive comments and 0:16:02.640 --> 0:16:06.800 positive momentum. They're really talking up subscriptions. Subscriptions are now 0:16:06.920 --> 0:16:10.240 well over six of their overall revenue, right, which obviously 0:16:10.320 --> 0:16:12.160 wasn't the case that there, you know, when they were 0:16:12.200 --> 0:16:14.280 high flying at the you know, the top of the pandemic. 0:16:14.720 --> 0:16:16.760 So I think if they continue to move the needle 0:16:16.800 --> 0:16:20.520 and subscriptions, they really try to compete with Apple Fitness Plus, Uh, 0:16:20.520 --> 0:16:23.120 they really try to integrate with bundles between hardware and 0:16:23.200 --> 0:16:27.600 software and ultimately maybe exit hardware, something that I speculate 0:16:27.640 --> 0:16:29.600 they should do, not saying they said they would do. 0:16:29.960 --> 0:16:31.880 I think they you know, could be on solid ground 0:16:31.880 --> 0:16:36.480 for a little while. Quick question, what about an acquisition 0:16:36.600 --> 0:16:40.480 Amazon Apple, Would they ever buy a Peloton? I don't 0:16:40.480 --> 0:16:42.880 think Apple whatever buy Peloton. They have Fitness Plus, they 0:16:42.880 --> 0:16:45.280 have the Apple Watch, and really you would be buying 0:16:45.280 --> 0:16:47.680 their hardware business, which is you know, failing at this point. 0:16:48.000 --> 0:16:52.120 Amazon maybe for prime. I really think Netflix has not 0:16:52.200 --> 0:16:55.320 done a good job in expanding beyond their core content. 0:16:55.680 --> 0:16:58.080 They've really failed in gaming. They should probably try to 0:16:58.080 --> 0:17:00.480 get into music as well, but fitness that could be 0:17:00.480 --> 0:17:04.520 a big way to lock people into Netflix subscriptions. All right, 0:17:04.560 --> 0:17:07.280 looks like some CEOs have some consulting to do with 0:17:07.440 --> 0:17:10.760 Mark German. Mark, thank you so much for joining us. 0:17:10.840 --> 0:17:15.879 I always appreciate you stopping by meantime, Jeff Bezos maybe 0:17:15.880 --> 0:17:20.359 buying another business in Washington. The NFL commanders, the Amazon founder, 0:17:20.560 --> 0:17:23.720 may bid for this team, according to folks familiar with 0:17:23.720 --> 0:17:26.320 the matter. The news was first reported by The Watchington Post, 0:17:26.440 --> 0:17:30.439 which Bezos also owns. Media entrepreneur Byron Island is preparing 0:17:30.440 --> 0:17:33.720 to sell the team. Amazon currently carries the NFL's Thursday 0:17:33.800 --> 0:17:45.879 night football package. Welcome back to bloom More Technology, Emily 0:17:45.920 --> 0:17:47.520 check in San Francisco. I want to get back to 0:17:47.600 --> 0:17:51.040 the markets and names across e V and mobility on 0:17:51.080 --> 0:17:56.320 the move. Here's at Ludlow back again, Yeah, Nikolas, where 0:17:56.320 --> 0:17:58.760 I was spending my morning and it was really interesting. 0:17:58.800 --> 0:18:01.240 The stock up as much as them percent and then 0:18:01.359 --> 0:18:06.280 ultimately closing down pretty reasonable performance in the corner, you know, 0:18:06.400 --> 0:18:09.399 very modest revenues, but what spoot the market was. In fact, 0:18:09.640 --> 0:18:11.800 they are not going to reach their original guidance as 0:18:11.840 --> 0:18:15.800 three battery electric semi trucks this year, and actually sort 0:18:15.800 --> 0:18:18.080 of downgraded the outlook for the rest of the year 0:18:18.119 --> 0:18:21.000 and next year, saying that performance is not going to 0:18:21.080 --> 0:18:23.440 be as good as they hope. Their expectations are being 0:18:23.480 --> 0:18:27.720 lowered because customers for battery electric commercial vehicles are pulling 0:18:27.800 --> 0:18:30.199 up back. They're basically saying that the cost is too 0:18:30.280 --> 0:18:32.840 high right now, the charging infrastructure is too high. You 0:18:32.880 --> 0:18:34.920 look at that chart and kind of the wild ride 0:18:34.920 --> 0:18:38.200 that we had for Nicola throughout Thursday's session to others 0:18:38.200 --> 0:18:41.080 in that space as well. Fiska also sliding after it 0:18:41.119 --> 0:18:44.800 reported a loss in RBC cut the stock to sector 0:18:44.920 --> 0:18:47.240 perform I think there's a lot of interest in Fiska 0:18:47.280 --> 0:18:50.280 given that they plan to start production of their SUV 0:18:50.840 --> 0:18:53.159 this month. Of course it's built by a third party, 0:18:53.480 --> 0:18:55.639 and then you have a raw innovation more focused on 0:18:55.640 --> 0:18:58.240 the autonomous driving space. This is a very much a 0:18:58.359 --> 0:19:01.359 pre revenue company, but with some fighting talk, they are 0:19:01.440 --> 0:19:05.960 capitalized to get in and Aurora telling investors that from 0:19:06.800 --> 0:19:11.320 they're on track to launch this commercial autonomous trucking business. 0:19:11.600 --> 0:19:14.840 Fighting talk. The stocks seem to like it is fighting 0:19:14.840 --> 0:19:16.560 talking up. I think there's a lot of questions in 0:19:16.560 --> 0:19:18.960 this space right now. All right, and hang on, I 0:19:19.000 --> 0:19:21.840 want to stick with Aurora and the future of autonomy. 0:19:21.880 --> 0:19:25.119 Aurora giving some funning talk about the real world prospects 0:19:25.400 --> 0:19:28.600 for self driving tech. But the industry is having a 0:19:28.680 --> 0:19:32.879 rocky patch with competitor Argo AI shutting down after Volkswagen 0:19:32.880 --> 0:19:36.399 and Ford walked away from backing that deal. Is it 0:19:36.480 --> 0:19:40.160 the first crack and a bigger fissure and self driving technology? 0:19:40.280 --> 0:19:42.800 Or as co founder and CEO Chris Urmson is with 0:19:42.880 --> 0:19:46.560 us now, So Chris, what do you think is it? Yeah? 0:19:46.600 --> 0:19:48.800 I think it's just normal. Right. What we're seeing right 0:19:48.840 --> 0:19:51.760 now is what happens in any industry that if you 0:19:51.760 --> 0:19:53.560 look at the automotive industry, at the beginning of the 0:19:53.560 --> 0:19:55.960 twentieth century, there was two fifty car companies. By the 0:19:56.040 --> 0:19:59.320 nineteen thirties, there was three, and so we've seen a 0:19:59.320 --> 0:20:01.639 lot of companies kind of spring up explore this space, 0:20:01.680 --> 0:20:03.000 and some of they are going to succeed some of 0:20:03.000 --> 0:20:06.560 them aren't at Aurora. We positioned ourselves to be independent 0:20:06.640 --> 0:20:08.879 to have the capital we need, the people in the technology, 0:20:08.920 --> 0:20:11.840 and so you know, I'm actually more optimistic than ever 0:20:11.920 --> 0:20:15.080 before about the space and where we're going. Well, as 0:20:15.200 --> 0:20:18.200 do you say risk is normal, But if you look 0:20:18.240 --> 0:20:21.359 at what happened with Ourgo shutting down big investors or 0:20:21.359 --> 0:20:24.280 potential investors pulling out, is that a risk of our 0:20:24.480 --> 0:20:27.239 faces No, In fact it's been. It's part of our 0:20:27.280 --> 0:20:29.920 strategic advantage. Right from day one. We wanted to be 0:20:29.960 --> 0:20:33.000 an independent company because we knew we wanted to be 0:20:33.040 --> 0:20:35.160 able to focus on the thing that mattered, on delivering 0:20:35.160 --> 0:20:37.719 on our mission getting self driving technology into the market. 0:20:38.520 --> 0:20:41.719 When Jim Farley talked about shutting down their investment in Ourgo, 0:20:42.000 --> 0:20:45.520 he literally said, we want to place our bets somewhere else, right, 0:20:45.560 --> 0:20:47.120 So we don't want to be another bet. We want 0:20:47.160 --> 0:20:49.600 to be the bet uh And I think we If 0:20:49.640 --> 0:20:51.359 you look at our investor base, these are folks you 0:20:51.440 --> 0:20:54.199 get the opportunity, understand the quality of the team, and 0:20:54.240 --> 0:20:56.840 are excited about the journey. More on, Chris, is good 0:20:56.880 --> 0:21:00.560 to see you virtually at least you know you just 0:21:00.600 --> 0:21:02.879 said that what we're seeing in the industry is normal. 0:21:03.440 --> 0:21:06.520 But what VW and Ford were saying is that actually 0:21:07.200 --> 0:21:09.480 we're pulling out because this is a much more distant 0:21:09.520 --> 0:21:12.480 technology than we thought. It's too far away. Right now, 0:21:13.040 --> 0:21:16.639 what are you doing to ensure stability for yourselves in 0:21:16.720 --> 0:21:19.600 terms of raising money? Are you going to plan head 0:21:19.600 --> 0:21:22.800 count reduction to kind of preserve cash because you guys 0:21:22.800 --> 0:21:25.320 still have a little way to go as well. Yeah, 0:21:25.320 --> 0:21:27.840 so I've been in the space for twenty years ish um, 0:21:27.880 --> 0:21:30.480 so kind of understand how hard the problem is. And again, 0:21:30.560 --> 0:21:33.480 we we engineered the company from day one to solve 0:21:33.520 --> 0:21:36.760 these important problems, realizing we were climbing a mountain. So 0:21:36.920 --> 0:21:39.800 the company we have amazing partners. We work with as 0:21:39.800 --> 0:21:42.320 you've got on the screen here Volvo Trucks. We work 0:21:42.359 --> 0:21:45.000 with pack oar to the top three truck manufacturers, who 0:21:45.040 --> 0:21:48.160 work with Toyota, the world's number one car manufacturer, Uber, 0:21:48.200 --> 0:21:51.880 the world's wonder one right healing platform, FedEx, Schneider Werner, 0:21:51.960 --> 0:21:54.320 some of these amazing trucking companies. So we feel like 0:21:54.359 --> 0:21:56.879