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Speaker 1: I'm Caroline Hinna Blue Mugs World headquarters in New York,

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Speaker 1: and I made Ludlow in San Francisco. This is Bloomberg

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Speaker 1: Technology in Carolina, post fed rally for then as that

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Speaker 1: one progress in the battle and inflation warning on rates

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Speaker 1: and we haven't even got two earnings yet. Macro and

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Speaker 1: the micro is super important for certain names to ed.

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Speaker 1: Let's talk about it. Meta surging after earnings relief, plans

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Speaker 1: to buy back shares, the company focusing on efficiency, were

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Speaker 1: digging into the short term cost cuts and the long

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Speaker 1: term goals as it also wins quarter approval to buy

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Speaker 1: VR startup within plus my exclusive conversation with Palenteer CEO

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Speaker 1: Alex carp who has some pointed words for shareholders and

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Speaker 1: potential new hires and crypto hackers. Still more money than

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Speaker 1: ever before. In two that's as Cathy Woods ARC doubles

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Speaker 1: down on it's one million dollar talget for bitcoin. First,

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Speaker 1: I want to go straight to our bloome bag report

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Speaker 1: to Alex Brinka, who has all the key takeaways from

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Speaker 1: metas Zarnings addicts, what were the top lines? I mean,

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Speaker 1: the biggest thing here with this stock bub I think

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Speaker 1: is going to be the cost cutting. Meta has had

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Speaker 1: some kind of shaky ground with investors over the last

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Speaker 1: twelve months because of how much they say they're spending

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Speaker 1: on things like this far flung vision of the virtual

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Speaker 1: reality metaverse. Well, they have come back to earth, it seems,

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Speaker 1: and actually lower their expectations for three for their costs

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Speaker 1: to about eighty nine to billion dollars and expenses for

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Speaker 1: the year. I think the icing on the cake on

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Speaker 1: that that's probably exciting investors is the addition of forty

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Speaker 1: billion dollars to their share a purchase plan. Again. Metas

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Speaker 1: stock sold off the most ever, the most free year

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Speaker 1: ever in two It's recovered a little bit, certainly more today,

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Speaker 1: but adding a little bit to that buy back has

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Speaker 1: certainly got folks excited now in terms of the broader

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Speaker 1: market and what we might also see from Alphabet tomorrow.

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Speaker 1: I'm looking at the top line staments for the first

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Speaker 1: quarter for revenue, they're projecting at twenty six to twenty

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Speaker 1: eight and a half billion dollars. That basically straddles the

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Speaker 1: average analyst expectations. So I think there might be some

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Speaker 1: clues under the hood here that the general malaise in

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Speaker 1: the ad market is leveling off similar to what we

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Speaker 1: heard from Snap yesterday. But as the earnings call gets

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Speaker 1: started here, I'm sure that there'll be questions on both

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Speaker 1: costs metaverse aspirations and where that revenue stabilization is coming from.

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Speaker 1: And I'm sure competition with a company that you focus

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Speaker 1: a lot in on, which is TikTok. So it is

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Speaker 1: notable that we're getting that by that push up in

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Speaker 1: the shares, but we're still half of where we are

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Speaker 1: in the value of Meta stock from this time last

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Speaker 1: year anything in terms of where their market share is

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Speaker 1: looking all their own cannibalization with the fact that they're

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Speaker 1: you know, discounting giving cheap ads on reels for example,

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Speaker 1: exactly that that is that reels narrative is one that

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Speaker 1: was really big last earning cycle, and I'm sure they'll

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Speaker 1: get questions now. Reels is their answer to TikTok. It's

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Speaker 1: short form videos that served up to you based on

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Speaker 1: an algorithm. It's really dicky, and users are liking it,

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Speaker 1: and they've shown some kind of strides and getting users

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Speaker 1: on board and spending more time there. The problem is

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Speaker 1: it doesn't make as much money for them as other

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Speaker 1: places where they could serve ads on Facebook and Instagram.

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Speaker 1: So last earning cycle three months ago they said this

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Speaker 1: will be a twelve to eighteen month process until they

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Speaker 1: can close that gap a hundred percent. I'm sure folks

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Speaker 1: are looking to get an answer on the progress on

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Speaker 1: that front. Hey, Alex, As you wrote in the top

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Speaker 1: live blog, investors have been laser focused on spending. But

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Speaker 1: the number that caught my eyes this two billion Facebook

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Speaker 1: core platform use it based seventy million growth from the

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Speaker 1: same time last year. How surprising is that It's a

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Speaker 1: bit surprising. Remember, Facebook has been around for what almost

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Speaker 1: two decades now, so to see a rise of seventy

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Speaker 1: million users and actually clear that benchmark of two billion

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Speaker 1: people using Facebook every day is an interesting little number

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Speaker 1: for a platform that's been around for a while. They've

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Speaker 1: been making changes to Facebook. They've been bringing in things

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Speaker 1: like reels. It seems like they're listening to what users

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Speaker 1: are liking from perhaps other platforms and bringing that into

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Speaker 1: their legacy app. So I'm sure that they will be

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Speaker 1: bragging about that mark. Zuckerberg was in the statement in

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Speaker 1: the release about that and also about what he's calling

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Speaker 1: which is the Year of Efficiency. So those two things

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Speaker 1: definitely seem to be the top two that they are

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Speaker 1: selling to investors as they let out these earnings today.

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Speaker 1: Alex breenca just the perfect summation of all that we've

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Speaker 1: just got in the last hour or so. Let's get

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Speaker 1: even more of a deep dive for you. Debra Ajo

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Speaker 1: Williamson is with US Principle Analyst have written insider Intelligence,

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Speaker 1: and you were looking at the daily active users of

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Speaker 1: Facebook as well and the engagement. It's interesting both snap

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Speaker 1: on Facebook well met to the parent company showing people

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Speaker 1: are still coming to their platforms that adding eyeballs, but

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Speaker 1: what about the actual revenues about the ads that being bought. Yeah, well,

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Speaker 1: I mean it is a good sign, just to say

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Speaker 1: right straight out, it is a good sign that both

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Speaker 1: daily active users and monthly active users for a platform

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Speaker 1: like Facebook that is you know, quite quite old in

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Speaker 1: social network to terms, is still gaining right So there,

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Speaker 1: really you have to take that is as an important sign.

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Speaker 1: Um that said that, you know, I'm pretty confident that

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Speaker 1: the gains are mostly going to be outside of the

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Speaker 1: core advertising markets, which would be the United States and Europe.

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Speaker 1: Um and and that is where Meta has been able

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Speaker 1: to for a long time now generate a significant portion

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Speaker 1: of revenue be able to charge more for advertising, uh,

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Speaker 1: sophisticated advertisers. And so I think where you're seeing the

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Speaker 1: dichotomy here is UM and this is true for staff

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Speaker 1: as well. Is that because the growth is in areas

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Speaker 1: where there is UM you know, where underdeveloped markets or

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Speaker 1: um you know, underdeveloped advertising businesses. Uh, that is impacting

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Speaker 1: the the overall revenue picture for the company. Wells also

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Speaker 1: to be put into perspective, which I know you highlight

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Speaker 1: time and time again. I mean, this is an enormous

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Speaker 1: amount of revenue. This company is pulling in thirty two

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Speaker 1: billion on a quartity basis, more than a hundred and

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Speaker 1: sixteen on an annual But revenue is down and it's

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Speaker 1: been down for three straight. Court is now absolutely and

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Speaker 1: you know, if we pull back to look at the

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Speaker 1: full year, uh, you know, as we expected, Meta closed

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Speaker 1: the year with its first year over year decline in

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Speaker 1: AD revenue. But the downturn was slightly less than we thought,

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Speaker 1: about one percent versus are expected two percent decline. Uh.

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Speaker 1: But you know that's that's not actually a good sign

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Speaker 1: when you think and pull back to one which was

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Speaker 1: a year when worldwide AD revenue grew nearly thirty seven percent.

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Speaker 1: So we are we've seen a huge swing in the

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Speaker 1: performance of this company, partially because of external factors like

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Speaker 1: the worldwide economy, the changes that Apple made to its

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Speaker 1: privacy that affect the effectiveness and the efficiency of the advertising,

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Speaker 1: but also I mean it's true that I think when

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Speaker 1: you think about where Mark Zuckerberg has been focusing his

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Speaker 1: time and attention, it's been on the metaverse. And I

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Speaker 1: think to some extent last year he took his eye

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Speaker 1: off of the ball of the fact that Facebook and

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Speaker 1: Instagram are the two biggest worldwide social platforms and there's

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Speaker 1: still room to grow. And I think that was something

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Speaker 1: that I think they're trying to rectify now going into well,

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Speaker 1: he called three year of efficiency, which sounds very much

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Speaker 1: like something shareholders have wanted to hear for some time.

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Speaker 1: The other thing shareholders like to hear, Deborah, is buy

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Speaker 1: backs and more of them, Meta boosting their buy back

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Speaker 1: authorization by forty billion. We're sharing on the screen, Uh,

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Speaker 1: this chart? Is this just Meta buying its own dip? Yes?

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Speaker 1: So this is an area because insider intelligence focuses mostly

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Speaker 1: on looking at revenue and usage metrics, UM I can't

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Speaker 1: specifically comment on that, but I think anything just bottom

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Speaker 1: line that Meta is doing to you know, to improve

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Speaker 1: its its profitability, to reduce expenses, to you know, to

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Speaker 1: counteract this sort of revenue shortfall is going to be

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Speaker 1: good for the company. Deborrah Williamson, thank you so much

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Speaker 1: for joining us principal analysts and insider intelligence, and the

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Speaker 1: other story we can't get away from. Open ai introducing

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Speaker 1: a twenty dollar per month subscription for a premium version

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Speaker 1: of chat GPT. Chat GPT Plus will offer access to

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Speaker 1: the chat pot even during peak times, with faster responses

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Speaker 1: to type queries and early access to new features. Open

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Speaker 1: Ai is eagerly trying to find viable business models to

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Speaker 1: cover the high cost of running its products, including of course,

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Speaker 1: the multimillion billion dollar I should say deal with Microsoft.

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Speaker 1: Shares of Pelaton absolutely soaring as the company reported improved

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Speaker 1: cash flow and a narrower net loss in the last quarter.

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Speaker 1: CEO Barry McCarthy saying, the questions about the viability of

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Speaker 1: the business they put to bed? Have they joining us now?

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Speaker 1: Shretter Cajuria, director of Internet Pretty Research, ever care should

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Speaker 1: are they put to bed? Is extinction behind us? I

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Speaker 1: think so first, Paul, thanks for having me. I think

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Speaker 1: if a question is not about extinction anymore, I guess

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Speaker 1: the question is whether this is going to be an

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Speaker 1: epic comeback, which is what Barry said in his in

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Speaker 1: his letter, I call it a very very spractical comeback

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Speaker 1: right now with the free dash blows that they posted,

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Speaker 1: excluding some of the one supplier related costs, what is

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Speaker 1: becoming increasingly clear is that this business is self sustainable

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Speaker 1: on a free dash bow basis, which is what their

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Speaker 1: number one priority was. Board remains unclear is what how

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Speaker 1: should you think about growth for this company? You mentioned comeback.

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Speaker 1: We asked our own audience if they felt that this

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Speaker 1: was evidence of the Peloton come back. These are the results.

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Speaker 1: Pretty overwhelming. No, not convince sixty six of respondents. I

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Speaker 1: guess what is it that the consumer feels right now

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Speaker 1: for Peloton? But how do we assess the user base

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Speaker 1: and the growth potential based on the bullish commentary? For management,

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Speaker 1: there's certainly a very good fall line for those who

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Speaker 1: own the device. The NBA score remains very high. Uh,

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Speaker 1: the usage and engagement with the product remains very robust,

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Speaker 1: and the retention grades are intrinsically very high. For this

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Speaker 1: business when we compare them to some of the other

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Speaker 1: subscription based businesses. What is unclear is how many more

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Speaker 1: of these UH Internet connected home fitness equipment can they

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Speaker 1: sell in the market. What is the actual growth rate?

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Speaker 1: How fast is the industry blowing? And can Felton grow

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Speaker 1: faster than the overall industry? Are we tapping out of

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Speaker 1: the market opportunity or is it is this something that

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Speaker 1: can grow in the double digital thrate. The juries are well,

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Speaker 1: sorry to interrupted. I was going to say the jury

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Speaker 1: is out. As I look across the cell side reaction,

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Speaker 1: I guess the concern is we we believe Barry McCarthy

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Speaker 1: in the near term, we don't yet have any evidence

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Speaker 1: of what the growth story two or three years from now.

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Speaker 1: That seems to be the skepticism out there. That's exactly right.

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Speaker 1: So what is in their control was cutting down costs,

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Speaker 1: headcount reduction, variabilizing the cost from fixed costs of variable costs,

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Speaker 1: as well as UH inventory management, better inventory demand management,

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Speaker 1: and all that they have done. And it's in the

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Speaker 1: past and they've done a great job since very came

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Speaker 1: on board. What is not in their control is really

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Speaker 1: driving demand. How much of a balance will they need

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Speaker 1: to do with marketing spend to drive this incremental demand

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Speaker 1: uh and also maintain positive recshual profitability. And what is

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Speaker 1: also what is unclear among those who are not very

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Speaker 1: happy with Peloton is the recent shift in outsourcing their

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Speaker 1: customer service and so they experience that customers used to

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Speaker 1: have is not the same in terms of expecting the

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Speaker 1: you know, the the customer service that they have been

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Speaker 1: as well as the delivery expectations of the equipment. Yeah,

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Speaker 1: you've got to build your own. I'm I'm interested. Therefore,

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Speaker 1: in what they now need to prioritize and execute on.

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Speaker 1: Is it more important than these partnerships like the exporting

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Speaker 1: goods Amazon that they work out, or is it about

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Speaker 1: self investment ensuring that they are updating the act as

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Speaker 1: they need to, that they are improving customer services they

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Speaker 1: need to. It will be a blend of bolt Uh.

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Speaker 1: It is very clear that customer service needs to be

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Speaker 1: better than what it has been at the US and best,

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Speaker 1: but increasingly important is the incremental user base that they

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Speaker 1: will get. So the key growth drivers that they will

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Speaker 1: benefit from our not only the distribution partners that you

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Speaker 1: called out and increasing those who include include more retailers,

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Speaker 1: but also international markets. They launched tread in Australia they

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Speaker 1: could expand into different countries as well as product category

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Speaker 1: expansion and what they call fitnesses and service product which

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Speaker 1: is really the rental program, as well as certified creon

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Speaker 1: which is if you own some cells that you want

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Speaker 1: to sell that and that drives. Essentially, they are trying

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Speaker 1: to make it easy for an average customer do do

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Speaker 1: buy this relatively more expensive equipment right? They also relied,

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Speaker 1: of course on promotions and holiday season sales thanks to

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Speaker 1: Schwetter Cajurior Director of Internet Equity Research at Evercred. Now

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Speaker 1: coming up some of my exclusive conversation with Palenteers CEO

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Speaker 1: Alex Carp That is always come next, a fascinating combative conversation.

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Speaker 1: This is Bloomberg Palentier, the at times mysterious data analysis

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Speaker 1: software firm, is making more commercial deals. It's a change

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Speaker 1: of strategy for a company that's thrived in chaos, winning

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Speaker 1: government and military contracts from the pandemic and war in Ukraine.

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Speaker 1: I sat down for an exclusive interview with Palans CEO

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Speaker 1: Alex Carp and asked him how vestors should view him

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Speaker 1: his view on Silicon Valley and global text perspective on Palenteer.

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Speaker 1: Take listen, we are a company whose most important purpose

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Speaker 1: is to power the West to to even higher heights

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Speaker 1: in the commercial and in the government context. And we've

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Speaker 1: done this in any terror in the kinds of the pandemic,

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Speaker 1: and the context of war, in the context of data protection.

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Speaker 1: And you really can't do that if you're going to

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Speaker 1: also transfer those technologies indirectly directly your adversaries, and we've

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Speaker 1: never done it. You're talking on stage about how your

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Speaker 1: public company and you have a responsibility to your shareholders.

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Speaker 1: And at times in the last twenty years, shareholders have

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Speaker 1: complained to you like why are you doing this it's

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Speaker 1: loss making or why are you not doing that? And

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Speaker 1: we talked about your strategy. Investors haven't really cheered it.

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Speaker 1: If you clearly go off the share price performance, what

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Speaker 1: is your message to them today about the dealers are

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Speaker 1: announcing honest for that. So we are a company that

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Speaker 1: has a primary mission. The primary mission is to make

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Speaker 1: the West stronger and better whatever that mission has secondarily

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Speaker 1: led to to see one percent Tager over twenty years,

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Speaker 1: thirty five percent Kager in the US government and the

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Speaker 1: share price is the thing is I think a little

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Speaker 1: bit of a red herring because all teck us down.

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Speaker 1: I don't think our shares have been any more punished

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Speaker 1: than anyone else's. So if you are an investor and

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Speaker 1: you want to go long on transforming our country and

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Speaker 1: our allies, you have a home appound here. I have

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Speaker 1: never ever, ever wavered from that statement. And if you

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Speaker 1: don't want to invest in us because of that, you shouldn't.

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Speaker 1: And if you're invest in us thinking I'm gonna change,

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Speaker 1: you're making a mistake. You we lay our cards on

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Speaker 1: the table. There is nothing besides transparency, or we haven't.

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Speaker 1: When we went to the Ukraine, I didn't ask them

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Speaker 1: can you pay us? I said here's the product. If

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Speaker 1: I had gone to standard investor be like, well, you

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Speaker 1: can't do this until they pay you. When we started

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Speaker 1: off in America on the pandemic and in Britain, we said, look,

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Speaker 1: we can help. This is the primary mission of our company.

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Speaker 1: And I think where I'm very aligned with investors is

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Speaker 1: they're hearing the truth. I'm not saying, hey, we might

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Speaker 1: change this prosop policy. We might do crazy deals in

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Speaker 1: adversarial countries, we might put the other missions ahead of

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Speaker 1: our point. No. And by the way, I tell the

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Speaker 1: most important investors that every day Palntarians, and I tell

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Speaker 1: our retail investors, whom I revere that every time I

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Speaker 1: go on TV. And you know when you're buying, when

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Speaker 1: you buy a pounder in a spirit of transparency. You

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Speaker 1: yourself has sold stock regularly since the lockoff expiry in

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Speaker 1: one um, in the full, in the fairness of full transparency.

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Speaker 1: In the last year or so, I've only sold for

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Speaker 1: tax reasons. There's been no financial sales. I'm grateful to

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Speaker 1: be here with you in Palo Alto. I'm surprised to

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Speaker 1: be here with you in Palo Alto. You've you've talked

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Speaker 1: about monoculture in Silicon Valley. You moved the company to Colorado,

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Speaker 1: and you've not come back often in the last three

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Speaker 1: years because the Silicon Valley is obviously failed in this

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Speaker 1: mission to produce technology that's useful and that the useful

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Speaker 1: for the world. It makes it a better place. And

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Speaker 1: we were I think the first reasonably large company to leave,

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Speaker 1: and now I'm very happy to come back and say, look,

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Speaker 1: you know on occasion, you know, our position is a

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Speaker 1: position we're proud of. And be surrounded again by people

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Speaker 1: who disagree with me. There are many wokes engineers I

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Speaker 1: think those are words you've used, that have lost their

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Speaker 1: jobs recently at some tech giants. I know that you're

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Speaker 1: looking at growth. Are you open to hiring those engineers?

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Speaker 1: Do not join parent here if you're not willing to

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Speaker 1: support the US militaryans allies. You can have, by the way,

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Speaker 1: any political opinion you want, as long as that's not

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Speaker 1: a question for you. If it is a question for you,

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Speaker 1: do not punt here is not your home. Unapologetic, uncompromising.

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Speaker 1: You know, he knows where he stands. He is completely

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Speaker 1: comfortable with palenters offering to government, to security services. And

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Speaker 1: that was just a small glimpse of a man that

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Speaker 1: many in Silicon Valley of shunned because he has shunned them.

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Speaker 1: Welcome back to Bloomberg Technology and Caroline had in New

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Speaker 1: York and to end New and San Francisco and the

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Speaker 1: tech sector really getting lift off today, unsurprisingly from the

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Speaker 1: macro strands from the FED. Yeah yeah, And I think

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Speaker 1: I'm saying this is kind of the first big post

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Speaker 1: FED rally since July. And I go straight to one chart,

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Speaker 1: which is now DA futures jump, two year yield goes down.

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Speaker 1: It is a snapshot of the story, and we have

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Speaker 1: one of the great Bloomberg minds joining us at the

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Speaker 1: moment who can get into this. But my point is

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Speaker 1: very simple. Twenty five basis point hike and a warning

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Speaker 1: from pal that while they're making progress on inflation, they

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Speaker 1: still foresee hikes to come. So for the market, it's

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Speaker 1: about when does the policy pivot come. But in the

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Speaker 1: context of tech, you ask the question, higher rates discount

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Speaker 1: the present value of future profits, and that is why

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Speaker 1: we look so closely at the relationship between yields and

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Speaker 1: the NASA one NAZAC futures. In this case. You talked

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Speaker 1: about bitcoin earlier, but let's just talk about risk assets.

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Speaker 1: It was a pretty broadly I'm looking at them as

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Speaker 1: that one, but also more speculative corners of the market,

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Speaker 1: so the Arc Innovation ETA and also the Goldman Sachs

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Speaker 1: Nonprofitable Tech Index. In other words, these stocks that trade

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Speaker 1: at high wall extreme multiples, high multiples some relief for

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Speaker 1: them because they have also been the most downtrodden corners

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Speaker 1: of the market through this hiking cycle. And now we

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Speaker 1: start to look at there's some more positive future, and

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Speaker 1: that includes bitcoin, which, let's be honest, carry you and

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Speaker 1: I both said earlier it's a risk asset inflation hedge

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Speaker 1: not so much. Not yet, let's get into all of it.

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Speaker 1: We're really pleased to say back two days in a

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Speaker 1: row is about Lee's with us, and really you were

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Speaker 1: racing yourself for the technology reaction to this macro story. First,

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Speaker 1: let's dig into the tech starres and the rally on upwards.

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Speaker 1: This is because they've been the most beaten up of late.

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Speaker 1: Yes and Ed had a great summary, making my job

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Speaker 1: a lot easier, but a lot of textures really extended

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Speaker 1: their gains even hitting session highs. You have the legs

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Speaker 1: of neda Amazon alphabet all soaring north of two because,

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Speaker 1: let's face it, they were pummeled last year. They don't

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Speaker 1: really like rising interest rates because that's not good for them,

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Speaker 1: that's not good for their projected profits. So now it's

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Speaker 1: welcome used they're happy, they celebrated it, they cheered it.

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Speaker 1: As Ed mentioned, nastag is up two percent and it's

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Speaker 1: probably just going to be the start for them. And today,

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Speaker 1: of course, of Meta, I'm sure you're covered it. Also postmarket,

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Speaker 1: they're trading well because of sales speed and Rosie outlooks.

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Speaker 1: So maybe it's the start of a new regime. As

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Speaker 1: some people have said. On a daylight today, there's two

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Speaker 1: places I go, fed go on the Bloomberg term and

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Speaker 1: all just to get a sense of where we sit

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Speaker 1: with rates in this country. But then I go to bitcoin,

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Speaker 1: and you heard us talking about it bitcoin the risk

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Speaker 1: asset reaction is that a fair moved by me to

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Speaker 1: make it kind of is because so bitcoin, for some

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Speaker 1: reason dip a little bit around two thirty when power

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Speaker 1: were starting to speak, but since then it's soared four percent.

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Speaker 1: Last I checked before I walked over here, it was

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Speaker 1: it paired some of its games, but still up around

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Speaker 1: point three. So a lot of the people said that,

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Speaker 1: you know, this is like bitcoin is behaving like a texture.

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Speaker 1: So it's obviously rising as well. But I talked about

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Speaker 1: this yesterday. Arcane Research said that it's going to be

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Speaker 1: a bad month for a bitcoin because the FEDS path

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Speaker 1: is still unclear, Like, yes, we got a downshift today

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Speaker 1: only twenty five bibs, but then are we going to pause?

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Speaker 1: Are we gonna pivot? So it still remains to be seen,

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Speaker 1: but there are still some people who are very bullish

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Speaker 1: on bitcoin. I mean, it's worth remembering that quite often

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Speaker 1: the moves we see precisely after the FED announcement and

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Speaker 1: press conference are completely undone the next day, so we wait,

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Speaker 1: we watch for tomorrow's at price action. But longer term,

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Speaker 1: the bulls are still very bullish about bitcoin. I mean,

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Speaker 1: we're gonna sell past twenty three thousand, according to one

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Speaker 1: particular e t F queen. Yes, so twenty three thousand

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Speaker 1: is where we're at today. But according to the e

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Speaker 1: t F queen named Kathy Would, we're going to hit

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Speaker 1: one one million in the next decade, which is really

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Speaker 1: just seven years from now, and she said several reasons,

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Speaker 1: But then that's four thousand two higher from where we

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Speaker 1: are today, and one million is the base is the

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Speaker 1: bull case one point forty eight to be exactly, I

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Speaker 1: don't want to get it wrong. Her bear case is

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Speaker 1: two hundred fifty eight thousand, and her base case is

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Speaker 1: six two. So regardless of whether it's the bull, the

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Speaker 1: base or the bear, it's just kind of hard to

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Speaker 1: imagine how we will get there, especially if you look

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Speaker 1: at where we are today. But this isn't the first

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Speaker 1: time she said the one million targets. She's been reiterating

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Speaker 1: it in the past. She said is in November when

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Speaker 1: bitcoin was her bring fifteen thousand. So if there's one

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Speaker 1: thing I admire about Kathy, but it's how she sticks

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Speaker 1: to her guns. I mean a lot of people love her,

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Speaker 1: a lot of people dislike her. But if anything, she's

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Speaker 1: really a woman of conviction. I would say, all right,

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Speaker 1: Bloomberg's Isabel A a very busy day for you in

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Speaker 1: the cross Set team, and we still have a bit

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Speaker 1: of a cycle to go. Now, sticking with crypto, thieves

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Speaker 1: saw a record three point eight billion, yes billion worth

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Speaker 1: of cryptocurrency in two that according to Chain Analysis Research,

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Speaker 1: nearly half of it was from North Korea alone. Bloomberg's

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Speaker 1: Jeff Stone has been writing about this data and this

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Speaker 1: report and joins us. Now it's interesting because two stories, right,

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Speaker 1: a terrible year for crypto markets, but also a very

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Speaker 1: bad year for those that had cryptocurrencies stolen. Essentially, that's right,

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Speaker 1: and also a bad year for the people who are

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Speaker 1: stealing them in some ways if you use that logic, ed,

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Speaker 1: this is a huge number. One point seven billion of

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Speaker 1: that three point eight billion is stolen by North Korean hackers.

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Speaker 1: We know it's the same group, according to the United

431
00:23:33,240 --> 00:23:36,600
Speaker 1: States government that previously breached Sony years ago. If a

432
00:23:36,600 --> 00:23:39,320
Speaker 1: lot of your viewers will remember that and tried to

433
00:23:39,480 --> 00:23:43,200
Speaker 1: steal upwards of a billion dollars from Bangladesh's central bank

434
00:23:43,640 --> 00:23:45,880
Speaker 1: years ago too. So this is a busy hacking group

435
00:23:46,160 --> 00:23:48,879
Speaker 1: really focusing on the same area that a lot of

436
00:23:48,880 --> 00:23:52,320
Speaker 1: investors are too. Why why are they doing it? It

437
00:23:52,359 --> 00:23:55,560
Speaker 1: pays It helps them get around UH sanctions. You know,

438
00:23:56,200 --> 00:23:59,200
Speaker 1: the United Nations and the US obviously have come out

439
00:23:59,359 --> 00:24:02,960
Speaker 1: very forced against North Korea over the past few generations,

440
00:24:03,440 --> 00:24:07,600
Speaker 1: and cryptocurrency is harder to track, is easier to hide,

441
00:24:07,680 --> 00:24:11,040
Speaker 1: and most importantly, it's easy to steal. If you think

442
00:24:11,080 --> 00:24:13,720
Speaker 1: back at the way that U S intelligence agencies would

443
00:24:13,720 --> 00:24:17,639
Speaker 1: have assessed that North Korea was selling counterfeit cigarettes or

444
00:24:17,760 --> 00:24:21,720
Speaker 1: using other means to get around sanctions. UM, this is

445
00:24:21,800 --> 00:24:24,199
Speaker 1: the latest iteration of that. Hey, Jeff, we talked a

446
00:24:24,200 --> 00:24:28,760
Speaker 1: lot about UM North Korea uh it's role in this.

447
00:24:28,920 --> 00:24:30,520
Speaker 1: What about the other side of the table. What is

448
00:24:30,560 --> 00:24:34,399
Speaker 1: the US government, for example, doing to prevent theft like this?

449
00:24:35,240 --> 00:24:39,199
Speaker 1: The US is scrambling to educate companies and investors and

450
00:24:39,240 --> 00:24:44,840
Speaker 1: Americans about the risk involved here. UM. This group has

451
00:24:45,000 --> 00:24:49,080
Speaker 1: has really bullied UM cybersecurity defenders for a really long time.

452
00:24:49,160 --> 00:24:52,280
Speaker 1: So what the Treasury Department, for instance, is doing is

453
00:24:52,880 --> 00:24:58,639
Speaker 1: releasing bulletins and advising crypto companies and crypto adjacent companies

454
00:24:58,680 --> 00:25:02,760
Speaker 1: about the risk of hiring North Koreans who are posing

455
00:25:02,800 --> 00:25:06,560
Speaker 1: as none North Koreans in order to either gather intelligence

456
00:25:06,640 --> 00:25:11,040
Speaker 1: or work on projects or steal information for young next

457
00:25:11,400 --> 00:25:14,399
Speaker 1: anything that can be made safer. Protect your password, be

458
00:25:14,480 --> 00:25:19,200
Speaker 1: smart about which services you're using. Watch Bloomberg well said,

459
00:25:19,440 --> 00:25:22,560
Speaker 1: I love a little bit about Tease Bloomberg Jesston. It's

460
00:25:22,560 --> 00:25:24,240
Speaker 1: a fascinating story. One of the most word on the

461
00:25:24,320 --> 00:25:26,720
Speaker 1: terminal and indeed on dot com. So thanks are coming

462
00:25:26,720 --> 00:25:28,679
Speaker 1: on and talking all about it. I mean, while we've

463
00:25:28,680 --> 00:25:30,679
Speaker 1: got so much more to delve into intermn of earnings,

464
00:25:30,720 --> 00:25:33,479
Speaker 1: we've got the software maker diner Trace topping estimates, boosting

465
00:25:33,520 --> 00:25:35,480
Speaker 1: full your earnings outlook, we're going to be speaking with

466
00:25:35,560 --> 00:25:49,639
Speaker 1: the CEO, Rick McConnell back in a minute now. Chairs

467
00:25:49,680 --> 00:25:52,679
Speaker 1: of diner Trace jumped after the company posted better than

468
00:25:52,760 --> 00:25:57,399
Speaker 1: expected financial results but crucially also guidance. Dina Trace provides

469
00:25:57,440 --> 00:26:01,040
Speaker 1: software which helps companies monitor they can shooting systems and

470
00:26:01,119 --> 00:26:05,200
Speaker 1: identify performance issues with a keen focus on AI solutions.

471
00:26:05,240 --> 00:26:08,600
Speaker 1: AI of course it is. We're joining us now. Rick McConnell,

472
00:26:08,840 --> 00:26:11,439
Speaker 1: CEO of Diana Trace biggest jump to the shares I

473
00:26:11,480 --> 00:26:16,359
Speaker 1: think since March of and you give strong guidance, which

474
00:26:16,359 --> 00:26:19,720
Speaker 1: in this market is important for you. Was this about

475
00:26:20,000 --> 00:26:23,080
Speaker 1: pricing that you were able to win? Was it about

476
00:26:23,359 --> 00:26:26,120
Speaker 1: advantage over competition in terms of what you're offering. Talks

477
00:26:26,119 --> 00:26:28,720
Speaker 1: to us through what's driving that ability to give strong guidance?

478
00:26:29,440 --> 00:26:31,720
Speaker 1: Well ed, Thanks so much for having me. It really

479
00:26:31,760 --> 00:26:34,920
Speaker 1: is about the market for digital transformation overall, and then

480
00:26:34,920 --> 00:26:38,160
Speaker 1: observe ability our market which is around a fifty billion

481
00:26:38,200 --> 00:26:42,520
Speaker 1: dollar space specifically, and if you put those two elements together,

482
00:26:42,920 --> 00:26:46,240
Speaker 1: you have a huge array of customers that are moving

483
00:26:46,400 --> 00:26:50,680
Speaker 1: their workloads the cloud and as that happens, they need

484
00:26:50,800 --> 00:26:56,440
Speaker 1: software that delivers answers and intelligent automation. You talked about

485
00:26:56,480 --> 00:27:01,600
Speaker 1: AI earlier, Intelligent automation from data that enables them to

486
00:27:01,880 --> 00:27:05,120
Speaker 1: have the Broadway situational awareness to run their software environments.

487
00:27:06,440 --> 00:27:09,719
Speaker 1: I'm curious about competition and whether you're kind of winning

488
00:27:09,840 --> 00:27:14,240
Speaker 1: share or even displacing existing cloud platforms. We had Bill

489
00:27:14,320 --> 00:27:16,560
Speaker 1: mcdermotot on the show the other day of Service Now.

490
00:27:16,920 --> 00:27:19,119
Speaker 1: I know that Service now has kind of been moving

491
00:27:19,160 --> 00:27:22,960
Speaker 1: into this observe ability space. Talk to us about how

492
00:27:23,040 --> 00:27:26,840
Speaker 1: you're faring in that regard. Well, we're very synergistic with

493
00:27:26,880 --> 00:27:30,680
Speaker 1: Service now deployments. A good number of our customers would

494
00:27:30,680 --> 00:27:33,600
Speaker 1: have service now deployed, they still need the observe ability

495
00:27:33,600 --> 00:27:37,600
Speaker 1: expertise that we provide through our AI OPS platform to

496
00:27:37,800 --> 00:27:40,399
Speaker 1: enable their environments to work perfectly, which is what we

497
00:27:40,440 --> 00:27:43,280
Speaker 1: strive to do. And so that's that's what we typically

498
00:27:43,280 --> 00:27:47,639
Speaker 1: see the Service Now Generally. The biggest competitor that we

499
00:27:47,720 --> 00:27:50,960
Speaker 1: have is do it yourself d Y and that is

500
00:27:51,040 --> 00:27:55,919
Speaker 1: where customers today are using homegrown tools, open source a

501
00:27:56,000 --> 00:27:59,879
Speaker 1: variety of other solutions to create dashboards. A dashboard to

502
00:28:00,080 --> 00:28:03,520
Speaker 1: your red, yellow, green, is your software working? What it

503
00:28:03,600 --> 00:28:05,719
Speaker 1: doesn't tell you is where the problem is and how

504
00:28:05,720 --> 00:28:08,280
Speaker 1: to fix it. And again that's what we can do

505
00:28:08,320 --> 00:28:12,280
Speaker 1: at a very granular level within your I T ecosystem.

506
00:28:12,400 --> 00:28:15,159
Speaker 1: Let's talk about Davis. Let's talk about the AI power

507
00:28:15,240 --> 00:28:18,560
Speaker 1: behind Dina trace And what's interesting is you go to

508
00:28:18,600 --> 00:28:21,119
Speaker 1: the meta earning statement and they're talking about their powers

509
00:28:21,280 --> 00:28:24,520
Speaker 1: and AI we're all talking about chat, GBT and open AI.

510
00:28:24,840 --> 00:28:27,520
Speaker 1: How are you managing with talent at the moment, making

511
00:28:27,520 --> 00:28:29,520
Speaker 1: sure that you've got the right people, They're secure, they're

512
00:28:29,560 --> 00:28:32,560
Speaker 1: not suddenly being tempted away at great enormous expense to

513
00:28:32,600 --> 00:28:36,399
Speaker 1: other companies that wanted on artificial intelligence. We do a

514
00:28:36,480 --> 00:28:39,400
Speaker 1: lot of our R and D out of Austria, actually

515
00:28:39,440 --> 00:28:43,000
Speaker 1: European general. This is where the company was founded. And

516
00:28:43,080 --> 00:28:45,360
Speaker 1: while we have people all over the globe, that's really

517
00:28:45,400 --> 00:28:48,080
Speaker 1: our hub for R and D and it is a

518
00:28:48,440 --> 00:28:52,120
Speaker 1: fabulous community of developers that we've built over the course

519
00:28:52,160 --> 00:28:55,160
Speaker 1: of well more than a decade to create the AI

520
00:28:55,280 --> 00:28:57,680
Speaker 1: ops engine. And Davis that you you talk about your

521
00:28:57,760 --> 00:29:00,160
Speaker 1: line and talk to us a little bit of out,

522
00:29:00,160 --> 00:29:02,520
Speaker 1: you're also speaking very much to your investor base, it

523
00:29:02,560 --> 00:29:04,440
Speaker 1: feels like in the quotes in your press release, So

524
00:29:04,560 --> 00:29:09,400
Speaker 1: talking about investing thoughtfully, about managing a business prudently, about

525
00:29:09,480 --> 00:29:12,880
Speaker 1: ensuring that you've got growth and profitability, is that still

526
00:29:12,960 --> 00:29:15,840
Speaker 1: very much what you need amid these macro hidwins, you

527
00:29:15,920 --> 00:29:18,360
Speaker 1: have to keep talking about the bottom line and the

528
00:29:18,400 --> 00:29:23,000
Speaker 1: profitability the margins. I think this this is an environment

529
00:29:23,080 --> 00:29:25,200
Speaker 1: as as you are report on almost daily at this

530
00:29:25,320 --> 00:29:28,080
Speaker 1: point probably daily that growth at our cost is sort

531
00:29:28,120 --> 00:29:32,160
Speaker 1: of done. The good news is we have always managed

532
00:29:32,200 --> 00:29:35,040
Speaker 1: Dina Trace with a balance of top line and bottom

533
00:29:35,080 --> 00:29:37,960
Speaker 1: line growth, and the result of that is we see

534
00:29:38,320 --> 00:29:41,920
Speaker 1: mid twenties overall. The our our growth and mid twenties

535
00:29:41,960 --> 00:29:45,000
Speaker 1: profitability in terms are our pretty margin and high twenties

536
00:29:45,040 --> 00:29:48,040
Speaker 1: and pre cash flow. This is a model that investors

537
00:29:48,080 --> 00:29:52,320
Speaker 1: want today because it shows the cash flow generation capabilities

538
00:29:52,360 --> 00:29:55,320
Speaker 1: of the company and push us forward, go deep tech

539
00:29:55,360 --> 00:29:58,600
Speaker 1: for us, and go into the artificial intelligence vision that

540
00:29:58,720 --> 00:30:01,320
Speaker 1: you have right now. Because you all, as you say,

541
00:30:01,600 --> 00:30:05,840
Speaker 1: strategically investing, where do you invest how do you envision

542
00:30:05,840 --> 00:30:08,160
Speaker 1: in the next five ten years? For Time and Trace,

543
00:30:09,160 --> 00:30:13,040
Speaker 1: a few areas of major investment. One is around automation. Automation.

544
00:30:13,080 --> 00:30:16,200
Speaker 1: Automation you can imagine how companies are doing I T

545
00:30:16,360 --> 00:30:19,400
Speaker 1: operations and keeping their software working today. It's with an

546
00:30:19,520 --> 00:30:21,680
Speaker 1: army of people sitting in front of a sea of

547
00:30:21,720 --> 00:30:25,800
Speaker 1: glass screens looking at dashboards trying to figure out is

548
00:30:25,800 --> 00:30:28,280
Speaker 1: it working, is it not working? If it's not working,

549
00:30:28,320 --> 00:30:30,680
Speaker 1: how to fix it. So automation is one of those

550
00:30:30,720 --> 00:30:35,200
Speaker 1: areas of focus. Secondly, focusing on big data and big

551
00:30:35,280 --> 00:30:39,800
Speaker 1: data analytics and doing that in real time with no reindexing,

552
00:30:39,840 --> 00:30:44,080
Speaker 1: no rehydration of data stores to make it fast, scalable,

553
00:30:44,560 --> 00:30:48,680
Speaker 1: UH super performing. And thirdly, it is around application security,

554
00:30:49,000 --> 00:30:53,920
Speaker 1: which is yet another area that benefits benefits substantially from

555
00:30:54,000 --> 00:30:58,200
Speaker 1: being integrated deeply into your observe ability platforms. So those

556
00:30:58,240 --> 00:31:00,920
Speaker 1: three areas are areas of key focus for on our

557
00:31:01,000 --> 00:31:03,760
Speaker 1: D perspective. Rick, I'm gonna be a bit more direct

558
00:31:03,760 --> 00:31:05,800
Speaker 1: with you and ask the same question Caroline did. I'm

559
00:31:05,800 --> 00:31:07,560
Speaker 1: looking at how much cash you've got on your balance

560
00:31:07,600 --> 00:31:10,600
Speaker 1: sheet and you talk in the commentary Caroline cited from

561
00:31:10,640 --> 00:31:13,320
Speaker 1: your owning statement, are you going to hire people or

562
00:31:13,400 --> 00:31:15,280
Speaker 1: do layoffs? And are you going to do M and

563
00:31:15,360 --> 00:31:19,840
Speaker 1: are not planning on any layoffs? The good news is

564
00:31:19,920 --> 00:31:23,959
Speaker 1: based on the model that we've got ed, we've been

565
00:31:24,000 --> 00:31:27,400
Speaker 1: able to modulate the hiring to manage to that model,

566
00:31:27,560 --> 00:31:29,800
Speaker 1: and so we feel very good about we are where

567
00:31:29,840 --> 00:31:33,959
Speaker 1: we are, and we're continuing to grow headcounts accordingly. In

568
00:31:34,080 --> 00:31:37,440
Speaker 1: terms of in terms of other areas organic in organic,

569
00:31:37,920 --> 00:31:40,600
Speaker 1: we'll continue to expand the company is as we see

570
00:31:40,640 --> 00:31:43,680
Speaker 1: fit UH in an M and A area. We can

571
00:31:43,720 --> 00:31:46,760
Speaker 1: expand in that fashion as well with smaller tech tuk

572
00:31:46,840 --> 00:31:50,840
Speaker 1: ins to accelerate root maps. Rick, it's great to catch

573
00:31:50,880 --> 00:31:52,520
Speaker 1: up with you. Thank you so much for your time,

574
00:31:52,640 --> 00:31:55,360
Speaker 1: make mcconmoms you Dina traces in a long day. As

575
00:31:55,400 --> 00:31:57,120
Speaker 1: a things came out at six thirty a m. Eastern

576
00:32:05,240 --> 00:32:08,520
Speaker 1: impression growth was primarily driven by the Asia, Pacific and

577
00:32:08,640 --> 00:32:11,720
Speaker 1: Rest of World regions. The year over year decline in

578
00:32:11,800 --> 00:32:16,000
Speaker 1: pricing was primarily driven by strong impression growth, especially from

579
00:32:16,040 --> 00:32:21,360
Speaker 1: lower monetizing surfaces and regions, lower advertiser demand, and foreign

580
00:32:21,440 --> 00:32:26,560
Speaker 1: currency depreciation. While overall pricing remains under pressure from these factors,

581
00:32:27,000 --> 00:32:30,040
Speaker 1: we have continued to make improvements to our ads targeting

582
00:32:30,040 --> 00:32:33,440
Speaker 1: and measurement that we believe are driving more conversions and

583
00:32:33,520 --> 00:32:38,160
Speaker 1: better returns for advertisers seasonally. The CFO of Meta and

584
00:32:38,200 --> 00:32:41,040
Speaker 1: It's notable that Marks lack about really trying to hit

585
00:32:41,080 --> 00:32:43,360
Speaker 1: home on the point of efficiency again on the call,

586
00:32:43,480 --> 00:32:46,280
Speaker 1: is really talking about how they've entered a somewhat different phase.

587
00:32:46,920 --> 00:32:49,760
Speaker 1: They say of the company, they grew so quickly for

588
00:32:49,800 --> 00:32:52,320
Speaker 1: the like first eighteen years of the company's growth. This

589
00:32:52,600 --> 00:32:55,440
Speaker 1: is very hard to really crank on efficiency while you're

590
00:32:55,440 --> 00:32:58,760
Speaker 1: growing that quickly. Nest also though, and talk about where

591
00:32:58,800 --> 00:33:00,800
Speaker 1: they are growing in the longer term, and it's towards

592
00:33:00,800 --> 00:33:04,880
Speaker 1: a metaverse vision. It's towards perhaps well acquisitions in that field.

593
00:33:04,880 --> 00:33:06,800
Speaker 1: And they got their first victory, didn't they The Federal

594
00:33:06,840 --> 00:33:11,200
Speaker 1: Trade Commission, a federal judge has denied the FTC's request

595
00:33:11,240 --> 00:33:13,640
Speaker 1: to block metas plan to buy virtual reality start up

596
00:33:13,720 --> 00:33:17,080
Speaker 1: within Unlimited. But the judge also did prevent Meta from

597
00:33:17,080 --> 00:33:19,680
Speaker 1: closing that deal until the agency decides whether to appeal.

598
00:33:20,240 --> 00:33:22,800
Speaker 1: Let's get to near leet Nylon. Who joins us more

599
00:33:22,840 --> 00:33:27,040
Speaker 1: from Washington And really extraordinary the fact that well Nina

600
00:33:27,120 --> 00:33:29,560
Speaker 1: Kahn getting pushed back in this way. Many felt that

601
00:33:29,600 --> 00:33:32,040
Speaker 1: perhaps this has really her trying to be aggressive and

602
00:33:32,080 --> 00:33:35,960
Speaker 1: it's denied. Yes, that that was a little bit surprising.

603
00:33:36,360 --> 00:33:40,160
Speaker 1: The FTC can still appeal. Um, they have until probably

604
00:33:40,200 --> 00:33:42,680
Speaker 1: next week to decide that. The judge gave them a

605
00:33:42,720 --> 00:33:46,920
Speaker 1: one week extension on blocking the deal until then and

606
00:33:47,040 --> 00:33:51,120
Speaker 1: has called hearing next Tuesday. UM, so we'll we'll have

607
00:33:51,240 --> 00:33:53,080
Speaker 1: a little bit more than about whether they're going to

608
00:33:53,240 --> 00:33:55,320
Speaker 1: keep pushing to block the steel or sort of let

609
00:33:55,400 --> 00:33:57,880
Speaker 1: it through. Um. But this was sort of the big

610
00:33:57,920 --> 00:34:01,320
Speaker 1: first quote last for leader car FTC. You know, she

611
00:34:01,440 --> 00:34:05,160
Speaker 1: came into her role, UM, saying that the agency needs

612
00:34:05,160 --> 00:34:07,800
Speaker 1: to be much more aggressive block a lot more mergers.

613
00:34:08,200 --> 00:34:10,200
Speaker 1: They had filed a lawsuit against this one, and they

614
00:34:10,200 --> 00:34:13,920
Speaker 1: also have the pending one against Microsoft Activision, so UM,

615
00:34:14,000 --> 00:34:16,399
Speaker 1: it'll be interesting to see whether this one has any

616
00:34:16,440 --> 00:34:19,959
Speaker 1: impact on that one as well. Lea terrific reporting blue

617
00:34:20,000 --> 00:34:23,480
Speaker 1: Bug sources telling us essentially about this sealed decision from

618
00:34:23,520 --> 00:34:25,960
Speaker 1: the San Jose courts. And as you characterize it right,

619
00:34:25,960 --> 00:34:27,520
Speaker 1: you can either see it as a win for Meta

620
00:34:28,040 --> 00:34:31,560
Speaker 1: or a loss Felina Kahn. But there is an opportunity

621
00:34:31,640 --> 00:34:33,759
Speaker 1: here to appeal. So what are the chances that that

622
00:34:33,840 --> 00:34:37,840
Speaker 1: happens and that it is successful. Well, there's actually a

623
00:34:37,880 --> 00:34:40,640
Speaker 1: couple options for the FTC here. One thing that they

624
00:34:40,640 --> 00:34:43,080
Speaker 1: could do is appeal to the Ninth Circuit Court of

625
00:34:43,080 --> 00:34:47,279
Speaker 1: Appeals in California Um. This judge is ruling directly um,

626
00:34:47,320 --> 00:34:51,440
Speaker 1: and then the Ninth Circuit would rule on whether Meta

627
00:34:51,560 --> 00:34:55,560
Speaker 1: could go forward with the seal or um whether it

628
00:34:55,600 --> 00:34:59,080
Speaker 1: remains blocked. The other option is the FTC could let

629
00:34:59,160 --> 00:35:03,759
Speaker 1: Meta close there us and then go into its administrative court,

630
00:35:03,960 --> 00:35:07,040
Speaker 1: and then there would be a longer trial focused on

631
00:35:07,080 --> 00:35:09,239
Speaker 1: the deal, and at the end of that if the

632
00:35:09,280 --> 00:35:13,200
Speaker 1: FTC wins, it could ask um Matta to sell this off.

633
00:35:13,239 --> 00:35:17,160
Speaker 1: That's not too unlike what they're doing now with Meta

634
00:35:17,239 --> 00:35:20,400
Speaker 1: over the Instagram and WhatsApp deals. So UM they have

635
00:35:20,480 --> 00:35:22,920
Speaker 1: a couple options for how they want to go forward.

636
00:35:23,120 --> 00:35:24,840
Speaker 1: The third option, of course, would be sort of just

637
00:35:24,880 --> 00:35:28,759
Speaker 1: to drop the lawsuit altogether and you know, let Meta

638
00:35:28,840 --> 00:35:32,279
Speaker 1: move forward with UM closing the steel next week. Over

639
00:35:32,320 --> 00:35:36,080
Speaker 1: to you, FTC, Leon Island. It's great reporting. Thank you

640
00:35:36,160 --> 00:35:38,600
Speaker 1: so much for bringing us that, and let's dig in.

641
00:35:38,760 --> 00:35:42,719
Speaker 1: I mean, many had questioned the overall focus of the

642
00:35:42,800 --> 00:35:45,759
Speaker 1: chain name in change, the focus on twenty thirties when

643
00:35:45,760 --> 00:35:49,240
Speaker 1: you eventually get profitability from these investments in reality labs,

644
00:35:49,239 --> 00:35:51,759
Speaker 1: in acquisitions such as within ed. But the here and

645
00:35:51,800 --> 00:35:54,000
Speaker 1: the now, the investors are liking this focus in the

646
00:35:54,000 --> 00:35:58,200
Speaker 1: near term on efficiency. This is the year of efficiency,

647
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Speaker 1: and that's it. The slogan for Meta is secured first

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Speaker 1: earnings report. It's absolutely brilliant. It's interesting because of course

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Speaker 1: he's being asked about generative AI on the call, right,

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Speaker 1: and he says, I'm equally as excited as everyone else,

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Speaker 1: but not at the expense of efficiency. This is a

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Speaker 1: very dull Mark Zuckerberg. We've come into three week I

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Speaker 1: mean learned lessons. There were some investors pushing hard. They

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Speaker 1: wanted to see a pull back in terms of capital spending.

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Speaker 1: And look, maybe we will see more job cuts. There's

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Speaker 1: talking about that middle management that still perhaps is under

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Speaker 1: a lot of focus in terms of the effectiveness of

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Speaker 1: having that. Really, this doesn't look like a fascinating overall

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Speaker 1: call is to and I wonder if this share price

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00:36:38,120 --> 00:36:41,399
Speaker 1: reaction holds into tomorrow. Yeah, we'll have to wait and see,

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00:36:41,480 --> 00:36:44,360
Speaker 1: you know, analysts, night's sleep on it. We'll see that

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Speaker 1: does it With this addition of Bloomberg Technology, of course,

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00:36:46,600 --> 00:36:48,880
Speaker 1: tons and tons and tons of tech earnings Thursday and

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Speaker 1: unpack at all and don't forget a lot to wrap

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00:36:51,920 --> 00:36:54,520
Speaker 1: up on our podcast. Check it out Spotify, I Heart

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00:36:54,840 --> 00:36:58,000
Speaker 1: or an Apple podcast wherever you get your podcast. This

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Speaker 1: is Bloomberg