WEBVTT - Bloomberg Businessweek Weekend - June 25th, 2021 0:00:01.040 --> 0:00:05.440 This is Bloomberg Business Week inside from the reporters and 0:00:05.600 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.200 global business, finance and tech news. As it happened Sloomberg 0:00:13.240 --> 0:00:16.759 Business Week with Carol Messer and Bloomberg Quick Takes Tim 0:00:16.800 --> 0:00:21.360 Stinovic on Bloomberg Radio. Hi, everyone, Welcome to the weekend 0:00:21.480 --> 0:00:24.480 edition of Bloomberg Business Week. It was a week full offense, 0:00:24.560 --> 0:00:28.080 speakers and investors passing through every last word to figure 0:00:28.080 --> 0:00:30.800 out what's next for the economy and the financial markets. 0:00:30.840 --> 0:00:33.199 I mean, speaking of markets, the oddities that make up 0:00:33.200 --> 0:00:36.600 today's trading environment continued, Carol to be front and center. 0:00:36.720 --> 0:00:41.000 Things like meme stocks, also Reddit fueled rallies, and then 0:00:41.200 --> 0:00:45.280 we're talking spacks. Heard of them, special purpose acquisition companies, 0:00:45.440 --> 0:00:49.240 nothing new but still in vogue exactly and kind of 0:00:49.320 --> 0:00:52.360 a frenzy this year in particular. And that brings us 0:00:52.400 --> 0:00:54.680 to Peter Atwater at William and Mary, who you will 0:00:54.760 --> 0:00:57.360 hear from and who writes about the age of scrutiny. 0:00:57.400 --> 0:01:00.880 That's s c R E w U T I N 0:01:01.080 --> 0:01:03.040 Y and what he says will be the third major 0:01:03.040 --> 0:01:06.440 financial betrayal in twenty years. Also this hour It's been 0:01:06.480 --> 0:01:08.679 a busy year for Global I p o s. One 0:01:08.720 --> 0:01:11.400 that went public this week is dox Simity. We caught 0:01:11.480 --> 0:01:14.120 up with the company's CFO, and then a panel of 0:01:14.200 --> 0:01:18.000 real estate heavyweights Brookfield's Bruce Flat, Rob Spire of Tishman Spire, 0:01:18.160 --> 0:01:21.920 and Shake Khalid, head of Qatar's real estate investment company, 0:01:22.000 --> 0:01:25.360 with a reality check on office use post pandemic. All 0:01:25.400 --> 0:01:27.080 of that to come. We begin, though, with this week's 0:01:27.120 --> 0:01:30.280 domestic cover story. It's all about a short history of 0:01:30.319 --> 0:01:32.960 shorts and the people who hate them. And by shorts, Carol, 0:01:33.000 --> 0:01:36.400 we're talking different kinds of shorts, right, Yeah, But if 0:01:36.400 --> 0:01:38.720 you check out the cover image, which I highly recommend 0:01:38.800 --> 0:01:40.840 go to Bloomberg dot com picking up at the news 0:01:40.840 --> 0:01:45.360 stand because uh it's a fun cover image, provocative, I think, yes, 0:01:45.440 --> 0:01:47.319 I would go so far to say that. Well. We 0:01:47.319 --> 0:01:49.800 were joined by Bloomberg Business Week editor Joel Weber also 0:01:49.840 --> 0:01:55.040 Bloomberg Finance editor Pat Regnier. Shorts into the equation of people, 0:01:55.680 --> 0:01:57.440 uh you know, who have a reason to look even 0:01:57.480 --> 0:02:01.760 without actually owning the share and money, uh by by 0:02:01.880 --> 0:02:05.000 taking a heartless um then without ever having been involved 0:02:05.080 --> 0:02:06.840 in the bet. So people who look at this say 0:02:06.920 --> 0:02:09.600 like what shorts they bring you know, who do you 0:02:09.639 --> 0:02:11.639 use the market? They bring new information to the market, 0:02:11.680 --> 0:02:15.360 and they also can kind of surface things that uh, 0:02:15.639 --> 0:02:18.359 you know, people who are bulls on the stock might 0:02:18.400 --> 0:02:20.320 not want to talk about another people who don't have 0:02:20.320 --> 0:02:22.080 a speak in the company might not have a reason 0:02:22.120 --> 0:02:26.120 to go um sniffing around to look at. That's not 0:02:26.200 --> 0:02:28.840 to say that it's not like a lot of Wall Street, 0:02:28.880 --> 0:02:33.560 but sometimes burkey business. Uh, but that's that's that's how 0:02:33.560 --> 0:02:35.799 it works on Wall Street. Let's not forget first of all, 0:02:35.880 --> 0:02:37.480 it's the other side of the equation, right there are 0:02:37.520 --> 0:02:40.079 people who talk about stocks that they like, and we're 0:02:40.080 --> 0:02:42.080 all kind of comfortable with that. This is people who's 0:02:42.320 --> 0:02:44.360 talk about stocks that they have concerned about. It's the 0:02:44.360 --> 0:02:48.040 other side of the trade and pat shorts and short 0:02:48.120 --> 0:02:51.720 investors they can often be right basically kind I mean. 0:02:51.720 --> 0:02:54.520 The classic example of that that often comes up is 0:02:55.040 --> 0:02:58.800 you know, Enron, it was a short who was uh 0:02:58.840 --> 0:03:03.280 you know, speaking to journalists you know about like, you know, 0:03:03.680 --> 0:03:06.600 you know something something doesn't look right here. Um, you know, 0:03:06.639 --> 0:03:11.080 We've had whats lots more examples. Sometimes the specific things 0:03:11.120 --> 0:03:14.280 that they bring up aren't right, but they create enough 0:03:14.360 --> 0:03:17.679 smoke that people start kind of looking for fire. Um 0:03:17.800 --> 0:03:21.120 and that and and that can be an important role. Um, 0:03:21.160 --> 0:03:24.360 they are interested actors, you know. I think you know, 0:03:25.040 --> 0:03:27.679 journalists have kind of a soft spot for shorts, and 0:03:27.919 --> 0:03:29.480 we have to be careful because that can be a 0:03:29.520 --> 0:03:33.040 little bit of a trap. Right, Short's been great stories. 0:03:33.160 --> 0:03:36.000 They have a reason to What journalists have to remember 0:03:36.080 --> 0:03:39.480 is like, you know, we just like great stories. Shorts 0:03:39.520 --> 0:03:42.520 like great stories. That makes them money and you've got 0:03:42.520 --> 0:03:45.080 to remember that book. Pat. You also get into the 0:03:45.080 --> 0:03:47.160 concept of naked shorting, which is getting a lot of 0:03:47.200 --> 0:03:50.480 attention right now, and it's something that's really misunderstood. What 0:03:50.480 --> 0:03:53.440 did the data tell us about something that is actually 0:03:53.440 --> 0:03:56.080 not allowed that people think is happening. So the idea 0:03:56.120 --> 0:03:59.040 of naked shorting is that you're going short, but you're 0:03:59.080 --> 0:04:01.760 not doing the shole thing that you're supposed to do 0:04:01.880 --> 0:04:03.640 when you're shorting a stock, which is you actually have 0:04:03.680 --> 0:04:05.880 to borrow the stock before you sell it to somebody. 0:04:05.960 --> 0:04:10.080 So you're basically doing the tread and telling somebody that 0:04:10.120 --> 0:04:12.960 you have this stock that you're selling to them, but 0:04:13.680 --> 0:04:16.800 maybe you haven't actually borrowed it, which would be an 0:04:16.800 --> 0:04:20.400 abusive practice. It is being legal, and you can get 0:04:20.400 --> 0:04:22.719 in a lot of trouble for doing it. Um. You know, 0:04:22.839 --> 0:04:25.400 some people appointed to the fact that, um, there has 0:04:25.440 --> 0:04:28.400 been a lot of orternoon is sales to deliver on 0:04:28.680 --> 0:04:32.039 some heavily shorted companies when they say like that that 0:04:32.120 --> 0:04:35.640 looks suspicious to them. UM. You know the SEC that's 0:04:35.680 --> 0:04:38.559 kind of a standard disclaimer when they release that data 0:04:38.640 --> 0:04:40.960 saying like, you know, this could be a number of 0:04:40.960 --> 0:04:44.839 different things, not necessarily evidence of naked shorting. You know, 0:04:45.000 --> 0:04:48.840 I think it's something that always needs to be looked at. 0:04:49.200 --> 0:04:52.760 Markets are big and complicated and you know, and increasingly 0:04:52.800 --> 0:04:55.560 okay in a lot of ways. UM, but there's no 0:04:55.680 --> 0:04:59.040 opening set cases that naked shorting is is happening at all. 0:04:59.120 --> 0:05:01.200 You know. The other the thing that I think the 0:05:01.680 --> 0:05:03.599 timing of the story was was great for it is 0:05:03.680 --> 0:05:06.320 the fact that Hendenburgh has sort of been in the 0:05:06.360 --> 0:05:11.000 headlines of late um Lordstown obviously being one example of 0:05:11.040 --> 0:05:15.719 that DraftKings Um being another. And I'm wondering how um, 0:05:16.040 --> 0:05:18.320 pat you know, as somebody who's who's covered all of 0:05:18.360 --> 0:05:22.960 this before and and the ecosystem, what what stands out 0:05:22.960 --> 0:05:25.880 to you about the Hendenburgh examples what's so interesting there 0:05:25.920 --> 0:05:27.400 is like there you have a case where that that 0:05:27.520 --> 0:05:29.680 is a company that's doing research and there's why would 0:05:29.680 --> 0:05:31.400 you that they're short? Right, So they're giving you the 0:05:31.400 --> 0:05:33.880 information to know, like I am an interested party there. 0:05:34.360 --> 0:05:37.400 And you know, in the Lordstown case, they're raising a lot. 0:05:37.680 --> 0:05:39.400 They were raising a lot of concerns about some of 0:05:39.440 --> 0:05:43.719 the re orders that Wordstown has. Now Wardstown how said, 0:05:43.800 --> 0:05:47.840 like we went and we looked and they they actually said, yeah, 0:05:47.839 --> 0:05:50.080 there was some problems with some of the statements we 0:05:50.160 --> 0:05:53.599 made there. They've denied some of the other allegations that 0:05:53.680 --> 0:05:56.320 were made. But again it was sort of like, hey, 0:05:56.400 --> 0:05:58.080 we're gonna trying to light on this and we're gonna 0:05:58.120 --> 0:06:01.000 look at it. Uh, and then you just have to 0:06:01.080 --> 0:06:05.600 kind of you know, judges this person who's just remember 0:06:06.040 --> 0:06:09.720 doing the trade and needs you know, and and has 0:06:10.320 --> 0:06:13.320 in putting the break down. They're going to be pointing 0:06:13.320 --> 0:06:15.440 it is, but you know, are they are they going 0:06:15.520 --> 0:06:18.120 to hit everything just right? Probably not? And they're an 0:06:18.160 --> 0:06:21.080 interesting party. That was Bloomberg Business Week Finance editor Pat 0:06:21.120 --> 0:06:23.760 mcneer along with the Bloomberg Business Week editor Joel Webber, 0:06:23.880 --> 0:06:25.640 like this story, we are talking so much about the 0:06:25.640 --> 0:06:28.160 Reddit fueled rally and so much of what's going on 0:06:28.560 --> 0:06:32.480 our short position short squeezes, And they actually did a 0:06:32.520 --> 0:06:36.240 primer on what it's all about efficient markets. Yeah, exactly, 0:06:36.320 --> 0:06:39.320 people take long positions, people take short positions. Coming up 0:06:39.360 --> 0:06:41.919 from short selling to the age of scrutiny, William and marries. 0:06:41.960 --> 0:06:45.600 Peter Atwater, who coined the term case shaped recovery, has 0:06:45.600 --> 0:06:48.080 another idea that's getting a lot of attention. He's coming 0:06:48.120 --> 0:06:51.480 up next. You're listening to Bloomberg Business Week. This is Bloomberg. 0:06:58.960 --> 0:07:02.320 This is bloom Bird Business Week with Carol Messer and 0:07:02.400 --> 0:07:07.840 Bloomberg Quick Takes. Tim Stinovik from Bloomberg Radio. Alright, Tim, 0:07:07.920 --> 0:07:09.960 I lost count of how many FED speakers this week. 0:07:09.960 --> 0:07:11.440 There were a lot of them. There were a lot 0:07:11.480 --> 0:07:14.040 of them, and that included FED Chief J. Powell. He 0:07:14.160 --> 0:07:16.480 was up on Capitol Hill before a House subcommittee. He 0:07:16.520 --> 0:07:19.360 was talking about the impact of the coronavirus. Job gains 0:07:19.480 --> 0:07:22.840 should pick up in coming months as vaccinations rise, easing 0:07:22.920 --> 0:07:26.440 some of the pandemic related factors currently weighing them down. 0:07:26.680 --> 0:07:28.840 Someone who looks at today's world through both an economic 0:07:28.880 --> 0:07:32.000 and Wall Street lenses, Peter Atwater adject professor of economics 0:07:32.000 --> 0:07:33.960 at William and Mary. Now you might recall that he 0:07:34.000 --> 0:07:36.800 coined the term K shaped recovery. He also writes about 0:07:36.880 --> 0:07:39.160 the age of scrutiny. The stuff he writes about Israeli 0:07:39.200 --> 0:07:41.920 provocative and the age of scrutiny that is spelled s 0:07:42.000 --> 0:07:46.680 c r e w t I n Y. What he says, Tim, 0:07:46.840 --> 0:07:50.760 is that he's writing about the third major financial betrayal 0:07:50.840 --> 0:07:53.360 in twenty years. That's what he's writing about. He says, 0:07:53.640 --> 0:07:55.880 after the dot com debacle, in the housing crisis, the 0:07:55.960 --> 0:07:59.320 investment crowd will not take kindly to yet another bubble 0:07:59.360 --> 0:08:03.080 bursts our conversation. I've been watching, as I always do, 0:08:03.560 --> 0:08:08.840 human behavior, and it's been fascinating to see in this cycle, 0:08:08.960 --> 0:08:17.440 particularly in the last eighteen twenty four months, where attention 0:08:17.720 --> 0:08:22.280 getting has been sort of the principal objective, whether you 0:08:22.440 --> 0:08:28.240 are a spack partner or a meme stock um that 0:08:28.480 --> 0:08:32.640 that the whole focus has moved to what I call illusion. 0:08:33.440 --> 0:08:37.000 That our our business leaders are now trying to captivate 0:08:37.040 --> 0:08:41.719 an audience. And and this is a very different cycle phenomenon, 0:08:42.559 --> 0:08:45.880 and it and it concerns me because at the same 0:08:45.920 --> 0:08:51.880 time you have all of these very charismatic um. You know, 0:08:53.080 --> 0:08:57.040 very powerful leaders talking about the promise and EA v 0:08:57.280 --> 0:08:59.839 S and the promise in space and the promise in 0:09:00.000 --> 0:09:05.640 all of this futuristic technology. You're starting to see companies 0:09:06.360 --> 0:09:10.240 where that illusion was false. You saw that with Luck 0:09:10.280 --> 0:09:14.960 and Coffee and wire Card and greensill And and Nicola 0:09:15.280 --> 0:09:19.440 and and most recently we were seeing this being brought 0:09:19.640 --> 0:09:25.040 forth at Lordstown Motor where the crowd is beginning to 0:09:25.120 --> 0:09:30.600 wonder what was real and what was fake. But the age, 0:09:30.679 --> 0:09:33.520 the coming age of scrutiny, it feels like in some ways, Peter, 0:09:33.920 --> 0:09:37.240 it's a good thing. And it's interesting how I feel like, 0:09:37.320 --> 0:09:40.679 in terms of cycles, market cycles, when there's things going wrong, 0:09:40.800 --> 0:09:43.520 investors are kind of quick to get the bad news 0:09:43.800 --> 0:09:45.360 and kind of pushed for the bad news to be 0:09:45.360 --> 0:09:49.680 out there, whether via an activist investors or the retail investor. 0:09:50.160 --> 0:09:53.200 Like it feels like we get to it much more quickly. 0:09:53.280 --> 0:09:56.360 Is that fair? Yeah? But but I think so far 0:09:56.520 --> 0:10:00.720 the crowd has shaken off any sense there is a 0:10:00.800 --> 0:10:04.559 systemic issue. We've we've treated each of these as if 0:10:04.559 --> 0:10:10.000 they're independent. But I think we're rapidly approaching a tipping 0:10:10.040 --> 0:10:14.160 point where it feels like there's too many of these 0:10:14.200 --> 0:10:18.880 happening at once, and and that then raises a question 0:10:18.920 --> 0:10:23.320 as to what is real and what is illusion? Much 0:10:23.400 --> 0:10:26.960 more broadly, what happens or what's the outcome. I mean, 0:10:27.000 --> 0:10:29.440 we've gone through the financial crisis, We've gone through the 0:10:29.480 --> 0:10:32.400 tech bubble, We've gone through certainly the pandemic. Each of 0:10:32.400 --> 0:10:35.319 those crises and the impact on either markets and or 0:10:35.360 --> 0:10:39.960 the economy very different. Where does this all go? So 0:10:40.040 --> 0:10:44.520 we love illusion when we're watching a magic act, but 0:10:44.520 --> 0:10:49.760 but illusion is inherently predatory, and so I'm fearful that 0:10:49.840 --> 0:10:55.360 if people now see that they've been duped, then then 0:10:55.360 --> 0:10:59.360 that raises a broader question by whom. And it's one 0:10:59.400 --> 0:11:03.280 thing to think that they've been duped by um, you know, 0:11:03.400 --> 0:11:07.800 startup companies where you know, okay, you've got very aggressive 0:11:07.960 --> 0:11:12.800 entrepreneurs touting the future. But but I think that there 0:11:12.880 --> 0:11:16.280 is a sense that, hey, I've been duped too many times. 0:11:16.600 --> 0:11:19.240 I was duped with the dot com bubble, I've been 0:11:19.280 --> 0:11:22.320 duped with a housing bubble. And I think there's a 0:11:22.360 --> 0:11:26.720 real likelihood that the crowd says that they're angry about this, 0:11:26.840 --> 0:11:29.960 that that that there that they want something done. You know, 0:11:30.040 --> 0:11:32.679 how could this happen again? And that's why I use 0:11:32.760 --> 0:11:35.079 the term scrutiny because I think people are going to 0:11:35.200 --> 0:11:38.920 feel like they've been really really abused in this. So 0:11:38.920 --> 0:11:41.640 who do you blame in this process? Is it regulatory 0:11:41.760 --> 0:11:45.320 lack of oversight, or is it you know, money moves quickly, 0:11:45.400 --> 0:11:48.800 you know this through the financial system, and the financial 0:11:48.800 --> 0:11:51.760 system markets in particular are always looking for I'm not 0:11:51.800 --> 0:11:53.360 going to say how to game the system, but for 0:11:53.400 --> 0:11:56.920 that new opportunity, you know, and sometimes all of the 0:11:56.960 --> 0:12:02.640 transparency about some new opportunity it hasn't yet been revealed. 0:12:03.600 --> 0:12:06.640 And I think that, yeah, there will be questions as 0:12:06.679 --> 0:12:10.959 to who to blame, and sadly, Carol, that the list 0:12:11.040 --> 0:12:16.480 will belong because when confidence is high, scrutiny is low. 0:12:16.920 --> 0:12:20.839 We don't pay attention, we don't regulate as much as 0:12:20.880 --> 0:12:24.760 we might otherwise. There's a there's a whole social phenomenon 0:12:25.640 --> 0:12:29.800 um and and with this one especially great because it's 0:12:29.840 --> 0:12:34.040 become almost cultural because we have this, this entire universe 0:12:34.080 --> 0:12:37.959 of influencers on social media who are in some ways 0:12:38.080 --> 0:12:42.400 portraying themselves and in a in a masquerade as well. 0:12:42.559 --> 0:12:44.920 Do you think that's all dangerous? The retail investor Crawd. 0:12:45.080 --> 0:12:48.880 I think that retail inevitably shows up late. That's what 0:12:49.080 --> 0:12:52.560 all of the research shows they are. They are drawn 0:12:52.640 --> 0:12:57.320 into it after an enormous amount of money has been made, 0:12:58.080 --> 0:13:01.760 and then they get very aggressive, very quickly. And so 0:13:01.880 --> 0:13:06.200 I watch meme stocks as a as a sort of 0:13:06.240 --> 0:13:11.400 a parallel to other market peaks, and I think that 0:13:12.120 --> 0:13:16.440 it should be more cautionary than exciting to um to 0:13:16.600 --> 0:13:19.440 the retail investor, Peter. Before we move on a little bit, 0:13:19.480 --> 0:13:21.640 I do want to dis continue with your writing about 0:13:21.640 --> 0:13:24.680 the coming age of scrutiny and how you talk specifically 0:13:24.720 --> 0:13:27.200 about what ahead will be a third major betrayal in 0:13:27.280 --> 0:13:31.400 twenty years and that specifically it would be more than 0:13:31.440 --> 0:13:33.920 just a pause orible pullback. So what do you think 0:13:34.559 --> 0:13:37.040 investors or how do you see it that investors what 0:13:37.120 --> 0:13:40.199 they should be preparing themselves for. I think I think 0:13:40.240 --> 0:13:47.520 investors need to be prepared for far greater um reevaluation 0:13:47.960 --> 0:13:54.080 of risk, both in the credit markets and in especially 0:13:54.120 --> 0:13:58.040 in the equity market. Um you know when Archigos failed 0:13:59.400 --> 0:14:03.160 THEE and was what would happen next? And you're starting 0:14:03.200 --> 0:14:06.760 to see a credit sweez, it's pulling back, it's lending 0:14:06.840 --> 0:14:12.839 to other similar entrepreneurs and and you know big investors. 0:14:13.320 --> 0:14:17.000 And I think that that seat change is likely to continue. 0:14:17.640 --> 0:14:21.720 And so investors who have taken great advantage of of 0:14:21.880 --> 0:14:27.000 ample liquidity and rising markets should should be prepared for 0:14:27.760 --> 0:14:31.280 a reversal of trends, both on the equity end credit side. 0:14:31.560 --> 0:14:34.600 That was Peter Atwater, adjunct professor of economics that William 0:14:34.600 --> 0:14:36.840 and Mary. I was like talking with him Tim because 0:14:36.880 --> 0:14:39.720 he does look at what's going on in financial markets 0:14:39.760 --> 0:14:44.040 with an economic perspective as well as with someone who 0:14:44.120 --> 0:14:46.600 understands Wall Street, and so it all comes together in 0:14:46.600 --> 0:14:48.320 a really smart way. Yeah, it really does. Always a 0:14:48.320 --> 0:14:50.640 great guest when he joins us on Bloomberg Business Week Radio, 0:14:50.720 --> 0:14:52.720 we'll still ahead on Bloomberg Business Week. A trend that 0:14:52.720 --> 0:14:55.760 picked up momentum during the pandemic digital medicine. We're gonna 0:14:55.800 --> 0:14:58.480 hear from doximitys CFO on this week's I p O. 0:14:58.920 --> 0:15:06.720 This is Bloomberg broadcasting from the financial capital of the World, 0:15:06.840 --> 0:15:10.280 Bloomberg eleven Frio in New York to Washington, d C. 0:15:10.480 --> 0:15:14.600 Bloomberg to Boston, Bloomberg one oh six one does San 0:15:14.640 --> 0:15:18.480 Francisco Bloomberg nine sixty to the country, Sirius XM Chado 0:15:18.560 --> 0:15:21.720 one nineteen and around the globe, the Bloomberg Business app 0:15:21.840 --> 0:15:26.200 and Bloomberg Radio dot com. This is Bloomberg Business Week. 0:15:27.240 --> 0:15:29.400 It went public this week, doubling in its first day 0:15:29.440 --> 0:15:32.320 of trading. We're talking about the healthcare platform dox Simity. 0:15:32.800 --> 0:15:35.560 For more on the i p O and the company's business, 0:15:35.560 --> 0:15:38.560 we caught up with Doximity chief financial officer Anna Bryson. 0:15:38.800 --> 0:15:42.000 We're really really proud and happy that we had a 0:15:42.000 --> 0:15:45.280 positive outcome for our physicians who participated in the i 0:15:45.400 --> 0:15:49.040 p O. We had over ten thousand physicians participating in 0:15:49.080 --> 0:15:51.600 the IPO and and that's more important to us than 0:15:52.520 --> 0:15:56.040 any additional funds for for our company. Explain what you 0:15:56.080 --> 0:15:59.520 mean by that, because increasingly we are seeing companies offer 0:15:59.600 --> 0:16:03.200 shares when they do go public to groups of people 0:16:03.200 --> 0:16:05.520 who traditionally don't get to participate in ip O. So 0:16:05.560 --> 0:16:09.240 explain what you did. Yeah, So we did a directed 0:16:09.240 --> 0:16:12.320 shares program for our physicians which enabled them to participate 0:16:12.360 --> 0:16:14.760 in the i p O at the offer price. And 0:16:15.160 --> 0:16:18.040 it was critical for us because the physician is at 0:16:18.080 --> 0:16:20.520 the court of the mission. Physician first is our guiding 0:16:20.560 --> 0:16:23.400 principle and the physicians really the reason that we've been 0:16:23.440 --> 0:16:26.560 able to build this leading digital platform for medical professionals. 0:16:26.560 --> 0:16:28.880 So they're the reason we're here. So it's very, very 0:16:28.880 --> 0:16:32.320 important for us to have them participate in the IPO. 0:16:32.480 --> 0:16:35.120 I understand as you've got one point eight million verified 0:16:35.200 --> 0:16:39.560 members on the platform. Of those one point eight million, 0:16:39.560 --> 0:16:43.600 how many did actually participate in the directed shares program. 0:16:43.680 --> 0:16:46.400 We had over ten thousand physicians participate in the directed 0:16:46.400 --> 0:16:49.640 Shares program. Alright, good to know. So tell us about 0:16:49.640 --> 0:16:53.480 the metrics going forward. I mean, you've got multiple tiers. 0:16:53.560 --> 0:16:55.920 One is free, You've got what almost twenty dollars a 0:16:55.920 --> 0:16:58.640 month as a provider that you can tap into, and 0:16:58.640 --> 0:17:02.120 then hospitals are also tapping into it. Um, that's the 0:17:02.320 --> 0:17:06.200 that's how you that's the financial model going forward. Yes, 0:17:06.240 --> 0:17:09.240 so we actually sell almost all of our offerings are 0:17:09.359 --> 0:17:11.439 free for our physicians. So all of our tools are 0:17:11.440 --> 0:17:14.159 free for our physicians. We do have a premium feature 0:17:14.200 --> 0:17:16.760 of our telehealth tool that we we do sell to 0:17:16.760 --> 0:17:19.560 our physicians for as you mentioned about twenty dollars a month, 0:17:20.080 --> 0:17:22.600 But the main way we monetize is by selling into 0:17:22.640 --> 0:17:25.919 the healthcare space, and healthcare is an industry that's long 0:17:26.000 --> 0:17:28.840 been very under index on digital spend and it's in 0:17:28.880 --> 0:17:32.160 the midst of a digital transformation. And we currently work 0:17:32.240 --> 0:17:34.080 with twenty of the top twenty hospitals and twenty of 0:17:34.119 --> 0:17:37.200 the top twenty pharmaceutical companies. And that's the main way 0:17:37.200 --> 0:17:39.560 I monetize. So r M is never to make to 0:17:39.640 --> 0:17:42.639 make money out of doctor's pockets, but but to focus 0:17:42.640 --> 0:17:44.520 on on the healthcare is and industry. All right, so 0:17:44.560 --> 0:17:46.360 what does the health care space get out of it? 0:17:46.760 --> 0:17:49.639 Uh and and I'm assuming that that's the bulk of 0:17:49.680 --> 0:17:52.920 your revenues in terms of percentage wise, that's correct. UM. 0:17:52.960 --> 0:17:55.840 So health health systems customer would use us in order 0:17:55.880 --> 0:18:00.560 to in gender referrals. So we allow them to potentially 0:18:00.560 --> 0:18:03.919 connect with a colleague or a key opinion leader in 0:18:04.000 --> 0:18:08.439 order to give share brand awareness about what's happening at 0:18:08.520 --> 0:18:11.400 that hospital or what's the new the new therapy they're 0:18:11.440 --> 0:18:14.719 they're focusing on in order to engender referrals. How did 0:18:14.720 --> 0:18:17.400 it grow during the pandemic because the doctors who I've 0:18:17.440 --> 0:18:20.520 spoken to have talked a lot about how UH it 0:18:20.680 --> 0:18:23.560 offers telehealth and it gave them an opportunity to also 0:18:23.640 --> 0:18:27.520 contact their patients, not just through telehealth, but also by 0:18:27.560 --> 0:18:29.960 calling them from their cell phones but making it look 0:18:30.000 --> 0:18:32.960 like you could actually we're calling from the office. Yeah, yeah, 0:18:32.960 --> 0:18:36.280 that's that's one of our one of our favorite features. Uh. 0:18:36.280 --> 0:18:39.600 You know that during the pandemic, these positions have have 0:18:39.720 --> 0:18:42.720 long been using our tools for for a multitude of years, 0:18:42.960 --> 0:18:46.440 you know, we've been in place for um and during 0:18:46.440 --> 0:18:50.080 the pandemic, they when physicians couldn't see any of their 0:18:50.080 --> 0:18:53.280 patients face to face, they started using our telehealth tools 0:18:54.160 --> 0:18:57.560 dramatically at a much much faster pace. And we're really 0:18:57.560 --> 0:19:00.240 proud to do our part in the pandemic and give back. 0:19:00.240 --> 0:19:02.480 And we actually didn't even start charging for any of 0:19:02.480 --> 0:19:05.520 the telehealth features at all, even to our health systems 0:19:05.640 --> 0:19:08.199 until January one, so we really gave it away for 0:19:08.280 --> 0:19:12.600 free for those first eight or nine months of the pandemic, 0:19:12.640 --> 0:19:14.639 and that was really really critical for us. We were 0:19:14.680 --> 0:19:16.960 very proud to do that. It sounds like an ultimately 0:19:16.960 --> 0:19:20.520 I think about companies that outsourced back office operations or 0:19:20.600 --> 0:19:23.240 customer service operations, and it feels like, in many ways, 0:19:23.720 --> 0:19:27.960 you guys are looking to do that for the medical community, 0:19:28.000 --> 0:19:31.320 doctors specifically, and the doctor communities at major hospitals is 0:19:31.320 --> 0:19:34.800 that what it's ultimately about. That's exactly right. We have 0:19:35.200 --> 0:19:38.000 a multitude of ways in which physicians can use us, 0:19:38.040 --> 0:19:40.760 but we want to enable them to collaborate with their colleagues, 0:19:40.760 --> 0:19:42.880 stay up to date the latest medical news and research. 0:19:42.960 --> 0:19:46.479 They could manage their careers, they could conduct virtual patient visits. 0:19:46.520 --> 0:19:49.480 We're replacing that that that fax machine and some of 0:19:49.640 --> 0:19:52.840 the more anequated technology that that they've been using for 0:19:52.880 --> 0:19:56.240 so long. And um, we're trying to be a smartphone 0:19:56.280 --> 0:19:58.680 hub really for them. Listen, research is a tricky one. 0:19:58.720 --> 0:20:00.600 How do you how do you stay ahead and make 0:20:00.640 --> 0:20:02.520 sure you do have the latest and greatest research for 0:20:02.560 --> 0:20:05.000 those members on the platform we do physician summits. We 0:20:05.040 --> 0:20:07.720 are constantly connecting with our physician members and getting feedback 0:20:07.760 --> 0:20:10.760 from them in order to grow our product suite for them, 0:20:10.800 --> 0:20:13.520 so they are directly involved in our product groom up. 0:20:14.160 --> 0:20:20.080 How big can this company become? I'm just wondering because 0:20:20.080 --> 0:20:22.400 it sounds like you guys have a lot more revenue 0:20:22.400 --> 0:20:24.439 streams that you can pursue. I think we have a 0:20:24.560 --> 0:20:27.439 tremendous organic opportunity ahead of us. As I mentioned healthcare 0:20:27.480 --> 0:20:29.119 as and industry that is in the midst of a 0:20:29.200 --> 0:20:33.520 digital transformation, and we look forward to continuing on this 0:20:33.640 --> 0:20:35.880 journey and seeing where it can go. And I'll get 0:20:35.920 --> 0:20:38.159 back to you on that one. That's Anna bryceon Doximity, 0:20:38.240 --> 0:20:41.880 chief financial Officer, talking about the company going public this week. 0:20:41.920 --> 0:20:44.679 You're listening to Bloomberg Business Week. Still ahead, the world 0:20:44.880 --> 0:20:48.040 increasingly going digital. We saw it at work during the pandemic, 0:20:48.080 --> 0:20:51.080 with everyone working from home. So what does that really 0:20:51.119 --> 0:20:53.879 mean when it comes to demand for commercial realistic I 0:20:53.880 --> 0:20:55.360 feel like it's one of the great debates of our 0:20:55.400 --> 0:20:57.399 time right now, not just here in New York City, 0:20:57.480 --> 0:21:01.160 but throughout the world exactly working from hybrid going back 0:21:01.160 --> 0:21:03.720 to the office. Time will tell. Coming up next, We've 0:21:03.720 --> 0:21:06.520 got a dream team in the commercial real estate space. 0:21:06.640 --> 0:21:17.199 They weigh in. This is Bloomberg. You're listening to Bloomberg 0:21:17.240 --> 0:21:20.840 Business Week with Carol Messer and Bloomberg Quick Takes. Tim 0:21:20.920 --> 0:21:25.080 Stinovik from Bloomberg Radio. There was a lot going on 0:21:25.240 --> 0:21:28.240 in real estate, uh this week, Tim, There always seems 0:21:28.280 --> 0:21:31.160 to be, And that included Blackstone Buying Home Partners of America. 0:21:31.200 --> 0:21:34.440 That's a rental company that owns more than seventeen thousand homes. 0:21:34.480 --> 0:21:37.080 Also a bloomberg big take on how the world's financial 0:21:37.080 --> 0:21:40.080 centers are struggling to get employees back to their offices. 0:21:40.480 --> 0:21:43.600 Workplace activity in London, New York, and San Francisco, Well, 0:21:43.640 --> 0:21:47.000 it's still fifty percent below its normal level. That's according 0:21:47.040 --> 0:21:49.639 to mobility data from Google. Carol Well. This week from 0:21:49.640 --> 0:21:53.760 the Qatar Economic Forum that Bloomberg participated in, I moderated 0:21:53.760 --> 0:21:56.160 a panel on real estate in a virtual world. On it, 0:21:56.440 --> 0:22:00.359 his excellency Khalid bin Khalifa, He's chairman of Qatar DR 0:22:00.480 --> 0:22:03.800 that's the Quatari real Estate investment company. Also Bruce Flat, 0:22:03.880 --> 0:22:08.000 CEO Brookfield Asset Management and Rob Spire, president CEO of 0:22:08.000 --> 0:22:10.320 Tishman Spire. They were a dream team. Here's some of 0:22:10.320 --> 0:22:14.159 that conversations. Let me start with you, is it a 0:22:14.200 --> 0:22:16.159 case that we're not going to go back to our office? 0:22:16.320 --> 0:22:17.800 Or if I look around New York, it feels like 0:22:17.840 --> 0:22:20.000 a lot of people have already moved back. Look, it's 0:22:20.400 --> 0:22:23.120 life is about phases. People have to adjust. They're all 0:22:23.119 --> 0:22:27.080 coming back to the office. Um, it's just inevitable and 0:22:27.640 --> 0:22:30.000 but but people have to do it in phases. They 0:22:30.040 --> 0:22:32.680 thought they weren't, they couldn't come back. Then they thought 0:22:32.680 --> 0:22:35.280 they were going to partly work from home. Eventually they're 0:22:35.280 --> 0:22:36.960 all going to be back to the office. We're seeing 0:22:36.960 --> 0:22:38.480