Speaker 1: From Marhart where Innovation of Money and Power Collie in
Speaker 1: Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde
Speaker 1: and Ed Ludlow.
Speaker 2: And Caroline Heydet Bloomberg's world headquarters in New York. Ed
Speaker 2: Ludlow is off. This is BlueBag Technology. Full market coverage
Speaker 2: ahead as a magnificent seven see momentum rally like never
Speaker 2: before last. We push your head to gamestops AGM as
Speaker 2: CEO Ryan Cohen gears up to deliver remarks, and we
Speaker 2: take a look at the summer box office as inside
Speaker 2: out to raks in over one hundred and fifty million
Speaker 2: dollars over the weekend. First, let's check in on those
Speaker 2: markets because we are seeing some pause, shall we say,
Speaker 2: We are looking at what the federal Reserve comments are
Speaker 2: going to be this week after the policy yes last
Speaker 2: week signaled maybe are we going to get the eight
Speaker 2: cuts that the market is anticipating. More notably, is the
Speaker 2: political tension still happening over in Europe? Tenure yield just
Speaker 2: actually selling off significantly after there was this push for
Speaker 2: Haven's last week. That calms a little. Why does it calm?
Speaker 2: Because Marie la penn Over in France right wing. Of
Speaker 2: course the person that we could see become prime minister
Speaker 2: if indeed we do see this role, this legislative vote
Speaker 2: go her direction. She's trying to calm the market, trying
Speaker 2: to calm well the broader French population to say she
Speaker 2: would be still backing institutions and she's support Macran if
Speaker 2: she did indeed become prime minister while he was president.
Speaker 2: Cat forty sees some relief around nine ten percent move on.
Speaker 2: See what's happening on the individual movers today, because we
Speaker 2: are seeing a little bit of movement on what's happening
Speaker 2: in the chip sect. And now the socks was previously
Speaker 2: at a record high. We dive back from that as
Speaker 2: Nvidia indeed sinks. One hundred and thirty dollars is where
Speaker 2: we currently trade. We're getting some big calls from some
Speaker 2: big investors and analysts still saying, look, we could go
Speaker 2: as high as one hundred and sixty dollars Suskahanna pointing
Speaker 2: us in that direction, but we just perhaps take profits.
Speaker 2: As we hit a new record high. Micron though up
Speaker 2: another two percent as we see analysts upgrade their price
Speaker 2: target on this particular stock. Broadcom also winning as we
Speaker 2: look towards that stock split. They follow hot on the
Speaker 2: heels of Nvidia one hundred and ninety eight is where
Speaker 2: we trade. But look, we have seen these particular chip
Speaker 2: names do phenomenally well over the course of this year,
Speaker 2: and many are saying this is momentum strategy that's winning. Basically,
Speaker 2: what you do you buy the winners and you sell
Speaker 2: the laggards. It's always kind of a powerful force in
Speaker 2: the markets, but right now it has got a complete
Speaker 2: tear on a scale that we've never seen before. We
Speaker 2: want to break it all down with bluebgg's Isabelle Lee,
Speaker 2: and it's a great bit of reporting coming from Bloomberg
Speaker 2: across our outlets, really talking about how much this momentum
Speaker 2: trade can stick because it's working.
Speaker 3: Yes, it's definitely working on a scale never seen before.
Speaker 3: A de relative performance has their pass to that of
Speaker 3: the dot com bubble, which was in two thousand, so
Speaker 3: it's around twenty four years and it's really simple. You
Speaker 3: buy what's winning, you sell what's losing. But the question
Speaker 3: is will at last? And momentum has a tendency to
Speaker 3: go on and and thing until something stops.
Speaker 4: It.
Speaker 3: Worth noting though, that this stretch has been going on
Speaker 3: for quite a while, longer than usual. But what's concerning
Speaker 3: is how they're driving force is really most evaluations. It's
Speaker 3: not anything about great momentum, about earning. So this is
Speaker 3: why some people are worried that it might buckle any
Speaker 3: time now. But then, just with anything, this is the
Speaker 3: winning trade. There will always be losing trade, and the
Speaker 3: losing one is value. But of course, if you're invested
Speaker 3: in momentum, and if you're tracking momentum, it's a great
Speaker 3: year so far, and the strategies that Bloomberg tracks are
Speaker 3: thirteen and top of the list momentum sixteen percent.
Speaker 2: It's interesting that you say some of the worry is
Speaker 2: about whether it's on valuation, whether it's on earnings. Now,
Speaker 2: some would say in Vidia's earnings increases do indicate evaluation optake,
Speaker 2: but is it just the breadth. Is it some of
Speaker 2: the other names that are getting swept in on this,
Speaker 2: that are moving more on valuation the natural earnings guidance.
Speaker 2: So that's fair.
Speaker 3: I mean, I think in Nvidia, every time I ask
Speaker 3: about in Nvidia, I do get Bolls and Bear. So
Speaker 3: it's like there's even no consensus. But the thing about
Speaker 3: this AA rallies. The big winners are getting bigger, and
Speaker 3: obviously everyone is left behind. I mean, you take a
Speaker 3: look at Apple Apple last week, so one if it's
Speaker 3: best this week in years just because of one announcement.
Speaker 3: And the thing is, it's interesting that these announcements wouldn't
Speaker 3: even roll out in the near future, so how will
Speaker 3: we test whether they will work? But then, for the
Speaker 3: longest time, Microsoft's lead towards against Apple seem far, But
Speaker 3: now Apple is inching towards Microsoft just because of that
Speaker 3: one announcement of an Aichat GPT like integration basically to
Speaker 3: compete with Microsoft.
Speaker 2: So that's the thing.
Speaker 3: The players are so narrow and whether the momentum trade
Speaker 3: will last remains to be seen. Is AI really going
Speaker 3: to be a transformative technology that will drive profits and
Speaker 3: productivity or is it just going to give some companies
Speaker 3: a handful of cash for the meantime.
Speaker 2: Well, I'm sure the companies are liking the handful as
Speaker 2: a cash for the time being. And indeed the investor
Speaker 2: is the bit on the winners as well. Lea breaking
Speaker 2: it all down, let's talk about what could be the
Speaker 2: castalyst that puts it to an end. Please to welcome
Speaker 2: Megan Horneman to the show. It's Capital Advisors CIO, and
Speaker 2: to that point, this has been a runaway trade, the
Speaker 2: momentum trade. What could stop it?
Speaker 5: So you know, you mentioned it, it's a momentum trade.
Speaker 6: So to be able to figure out exactly what we'll
Speaker 6: stop bit it's basically impossible. But we think that there's
Speaker 6: a couple of things to keep in mind. The interest
Speaker 6: rates right now. We did get that flight to quality
Speaker 6: last week, so yields went down markets like that, but
Speaker 6: then take a look at what's happening today.
Speaker 5: Yields are backing up. That can take some.
Speaker 6: Of this momentum matter this rally, because what's going to
Speaker 6: happen is people will just start looking at valuations. And
Speaker 6: with the uncertainty around where interest rates are going, we
Speaker 6: obviously know that eventually the federal cut rates, we just
Speaker 6: don't know when and when you're looking at long term yields,
Speaker 6: when you're looking at the treasury market, the dynamics in
Speaker 6: the treasury market are just for higher yields because we
Speaker 6: have so much issuance that's out there, and this is
Speaker 6: something we think could take some wind out of this
Speaker 6: sale here. It's just so it can be a valu
Speaker 6: valuation correction.
Speaker 2: Really interestingly, you're looking at what's happening in terms of
Speaker 2: supply side with treasuries, Well, what about the inflation picture.
Speaker 2: What have you been taking from the PPI, the CPI
Speaker 2: and whether or not we are cooling or whether actually
Speaker 2: we're still just too high for too long.
Speaker 6: It is cool and the data we got last week
Speaker 6: was good news, but let's keep in mind it was
Speaker 6: one month's data and we still are far way away
Speaker 6: from where the FED wants to be. And when you
Speaker 6: actually dig into some of those reports, this is a
Speaker 6: goods deflation story.
Speaker 5: This isn't a service deflation story. In fact, we're still looking.
Speaker 6: At service prices that are quite sticky, and housing as
Speaker 6: well is another thing that's sticky. These are things that
Speaker 6: the FED is going to be taking into consideration. This
Speaker 6: is why we think and we kind of lay in
Speaker 6: the camp hire for a little bit longer. We might
Speaker 6: get something in December, but we need a lot more
Speaker 6: information before we can say that the Fed can do that.
Speaker 2: And just add in, as you say, that flight to quality,
Speaker 2: that volatility that we see because of political risk over
Speaker 2: in France of all places. I mean, how much Megan
Speaker 2: do you have to take in the global geopolitical risks
Speaker 2: right now.
Speaker 6: I think it's something we have to consider when you're
Speaker 6: coming into this year. We knew we had a lot
Speaker 6: of elections and political risks globally, and let's keep in
Speaker 6: mind we still gotten to November here in the US.
Speaker 6: There's a lot from a political standpoint through this summer
Speaker 6: that can keep the markets on edge. And it just
Speaker 6: tends to be when there's so much risk out there.
Speaker 6: But there's so the markets are so high, you know,
Speaker 6: what's the upside risk from here? That's what I don't see.
Speaker 6: I see a lot more downside risks from here than
Speaker 6: I do upside catalysts.
Speaker 2: So what to do as a chief investment officer of
Speaker 2: capital advices? I mean, where do you see? Is it
Speaker 2: protecting your downside or is it hedging or is it
Speaker 2: more sort of reallocating in some way.
Speaker 6: So at this point, there's hold cash, keep a good
Speaker 6: amount of dry powder that you can take advantage of opportunities.
Speaker 6: That's what we've been doing. Cash isn't hurting you right now.
Speaker 6: You're getting five percent or more. Eventually that won't be
Speaker 6: the case, but for now you have the cash to
Speaker 6: be able to look for opportunities, and there will be
Speaker 6: opportunities right now if you look at the market perts
Speaker 6: the market that are really unloved, look at small and
Speaker 6: MidCap stocks.
Speaker 5: Now the economy starts to roll over.
Speaker 6: They're going to struggle a bit, but that's the time
Speaker 6: to take advantage because that's where you see the best
Speaker 6: upside as we get out of this, you know, an
Speaker 6: economic slowdown, and they're priced so on a relative basis
Speaker 6: versus large cab the cheapest we've ever seen.
Speaker 2: When you're thinking of a technology show such as ours,
Speaker 2: and many want to understand the realities you need to
Speaker 2: be diversified, but they also want to understand where the
Speaker 2: opportunities are outside of mag seven in technology, like is
Speaker 2: there a play for tech or indeed AI in small
Speaker 2: or medium sized companies, So.
Speaker 6: You know, the AI is here with us, it's been here,
Speaker 6: but it's just only going to evolve going forward. The
Speaker 6: one thing when you think about AI is it's not
Speaker 6: just technology. And I know it's a technology show, so
Speaker 6: I apologize, but let's look at other areas of the
Speaker 6: market that will benefit from AI.
Speaker 5: So what are the companies and sectors that are going.
Speaker 6: To benefit from implementing AI that that we can see
Speaker 6: that in their earnings. Those are some of the things
Speaker 6: that we're looking at. Industrial is an idea some consumer stocks.
Speaker 6: I think it's right now a little bit cautious because
Speaker 6: the economy is weaken and consumers are definitely stretched. But
Speaker 6: think of where the companies that are going to benefit
Speaker 6: from the use of AI going forward.
Speaker 2: What about energy, I mean, there's a great story, very
Speaker 2: well read all about the focus of Bill Gates at
Speaker 2: the moment, perhaps on nuclear energy, and I'm wondering whether
Speaker 2: you're seeing energy and some of the infrastructure needed for
Speaker 2: this new AI paradigm shift as a place to bet.
Speaker 7: Yeah.
Speaker 6: Absolutely, that is an area. Look at what utilities have
Speaker 6: been doing as well because of the use for it.
Speaker 6: But the infrastructure side, we don't have yet to be
Speaker 6: able to support what this AI is going to look
Speaker 6: like in the next decade, So we do need from
Speaker 6: an infrastructure standpoint. Those are some areas that we'll look
Speaker 6: at as well as we see some broader weakness in
Speaker 6: this market.
Speaker 2: It's great to get a take that encapsulates a lot
Speaker 2: of tech, but also how to diversify outside and around it.
Speaker 2: Megan Honomon, we really appreciate it. Verdan's capital advisors stay well. Meanwhile,
Speaker 2: coming up, there's been a meme frenzy in Game Stops.
Speaker 2: Annual meeting actually kicks off today after it's postponed due
Speaker 2: to technical issues due to that meme demand last week.
Speaker 2: For details, that's coming up ahead. Meanwhile, look keep an
Speaker 2: eye on shares of TSMC. We look at what happens
Speaker 2: in terms of trading of ADRs, which actually there is
Speaker 2: a trade here. There is a long favored arbitrategy strategy
Speaker 2: where you buy TSMC over in Taipei and you short
Speaker 2: the usadrs American Depository of receipts listed here. But it's
Speaker 2: becoming painful because basically the premium of the US is
Speaker 2: pushing ever higher. Will we see it turn around? This
Speaker 2: has been big technology. Let's talk evs. Ferrari will release
Speaker 2: its first fully electric model next year, but it's open
Speaker 2: to a range of technologies. That's all according to the
Speaker 2: company's CEO. Now younger buyers favorite electric. For established customers, well,
Speaker 2: they're hesitant to give up this sportscar's trademark raw for
Speaker 2: Ari aims to offer traditional, hybrid and electric options to
Speaker 2: satisfy all of its customers. And let's talk a little
Speaker 2: bit more along the electric vehicle route, because Tesla has
Speaker 2: gotten approval to test this advanced driver assistance system over
Speaker 2: on Shanghai streets. Who most Croatrudel joins us now, and
Speaker 2: how important is this for FSD, how important it is
Speaker 2: this for the Tesla business models.
Speaker 8: It's an incremental step, and I do think that there's
Speaker 8: some potential for what Tesla markets is full self driving,
Speaker 8: to be a more meaningful contri contributor to their business
Speaker 8: in China, which they could really use at the moment.
Speaker 8: But what we don't know is just how long it's
Speaker 8: going to take them to be able to offer this
Speaker 8: more widely. Even this incremental step that we're reporting on
Speaker 8: today really just applies to the city of Shanghai and
Speaker 8: potentially also Hang Joe, another city, And so we're not
Speaker 8: necessarily seeing China take the same sort of hands off
Speaker 8: approach that we've seen in the US, where you know,
Speaker 8: they've been able to offer you know, FSD nationwide and
Speaker 8: it wasn't all that much trouble for them to make
Speaker 8: this available to consumers. On the other hand, in China,
Speaker 8: they're really going to have to sort of you know,
Speaker 8: in piecemeal fashion. Uh, you know, hit hit the sort
Speaker 8: of tick the boxes that they need to with regulators
Speaker 8: in order for consumers to be able to activate this.
Speaker 2: And it feels as though MOSC has realized that he
Speaker 2: needed these green lights coming from regulators, he made whistlestop
Speaker 2: tours to Beijing and actually therefore having to play alongside
Speaker 2: all the other Chinese ev makers.
Speaker 8: Yeah, that's right, And this has been you know, months
Speaker 8: in the making, even before that recent trip to Beijing
Speaker 8: that you mentioned. You know, this this is a case
Speaker 8: of Tesla having you know, offered the ability to buy
Speaker 8: this if you're a customer in China, but you know,
Speaker 8: not being able to actually activate it and you know,
Speaker 8: be deployed the the sort of ability to turn this on.
Speaker 8: And so, you know, I think there's still a lot
Speaker 8: of questions about you know, just how willing Tesla is
Speaker 8: to continue to charge as much as it has for
Speaker 8: this system, depending on you know, how much sort of
Speaker 8: capability it's able to offer, because this is all going
Speaker 8: to be up to the regulators, and again I think
Speaker 8: they're going to you know, the likelihood that they're going
Speaker 8: to be as permissive as the US has been.
Speaker 7: You know, where.
Speaker 8: Washington has taken this view that we don't want to
Speaker 8: stand in the way.
Speaker 7: We want to offer you know.
Speaker 8: Driver assistance systems, you know, plenty of leash to try
Speaker 8: and you know offer you know, the sort of safety
Speaker 8: benefits without you know, getting in the way. That that
Speaker 8: still remains very much an open question.
Speaker 2: Creat you down, We thank you so much all things Tesla,
Speaker 2: And now Tesla has a pretty loyal shareholder following so
Speaker 2: Tuesdays game Stop, so loyal that they're going to have
Speaker 2: to reschedule their annual meeting. It kicks off today twelve
Speaker 2: thirty pm local here in New York Eastern time. It
Speaker 2: was delayed last time because of technical issues going to
Speaker 2: break down why Bailey lipsheals and because too many of
Speaker 2: you what did it log one at the same.
Speaker 4: Time, right, too many people trying to get in computer
Speaker 4: share saying that they had to reschedule it from Thursday
Speaker 4: afternoon again to your point, to twelve thirty to day.
Speaker 4: We had to resort to twitch streams, YouTube streams, X streams,
Speaker 4: which was interesting because there were tens of thousands of
Speaker 4: people flocking to these channels that normally get maybe a
Speaker 4: half dozen people checking in on a daily basis, so
Speaker 4: people trying to find a way to stream and so
Speaker 4: fingers crossed it goes off without an egliches station.
Speaker 2: And why is there so much demand? May who are
Speaker 2: we going to be hearing from? What are we going
Speaker 2: to be knowing?
Speaker 7: No one knows.
Speaker 4: So when you look at last year's AGM when Ryan Cohen,
Speaker 4: it was the first time as chairman leading this call,
Speaker 4: he spoke for about ninety seconds the entire call.
Speaker 2: Ninety second ninety seconds, okay.
Speaker 4: Entire The entire call lasted about fifteen from start to finish,
Speaker 4: So no one knows what's going to happen. There's so
Speaker 4: much interest in what whether Roaring Kitty Keith Gill could
Speaker 4: appear or be mentioned in any way, shape or form.
Speaker 4: The company did raise about three billion dollars through sales
Speaker 4: of new shares over the last two months, so will
Speaker 4: they address the cash hall that they have now about
Speaker 4: four billion doll the balance sheet?
Speaker 7: Well, they addressed the strategy. No one really knows.
Speaker 4: And I think that's part of the reason that people
Speaker 4: have to tune in because if Ryan Cohan appears, how
Speaker 4: long does he speak? Does someone else make a guest
Speaker 4: appearance or is it strictly business from some of the lawyers.
Speaker 2: Now having tuned into Keith Gills's own YouTube channel the
Speaker 2: other week, it doesn't seem like he knows much about
Speaker 2: the strategy of game stuff either, but he does seem
Speaker 2: to be moving around his holdings. He's changing his options
Speaker 2: into actual share share ownership. That seemed to be pushing
Speaker 2: up the stock recently.
Speaker 7: Yeah, there was some excitement around that.
Speaker 4: So we saw about a week and a half ago
Speaker 4: he posted a screenshot on Reddit five million share stake,
Speaker 4: one hundred and twenty thousand call options. A couple of
Speaker 4: days later turned out he exited that call positions and
Speaker 4: reported north of nine million shares. So that makes him
Speaker 4: a top four holder if we take it at face
Speaker 4: value and is on paper worth The last time you
Speaker 4: posted about two hundred and sixty two million dollars, So
Speaker 4: where did he get the cash from?
Speaker 7: How rich is he?
Speaker 4: A lot of questions and uncertainty around that that he
Speaker 4: never addressed on his stream, but nonetheless, again if you
Speaker 4: take it at face value, what he posted on Reddit,
Speaker 4: top four holder from a retail shareholder who back in
Speaker 4: twenty twenty was preaching game stop, the Ryan Cohen vision
Speaker 4: and short squeeze.
Speaker 2: And that's just focused for a minute on Ron Cohen,
Speaker 2: because if you haven't been a complete GameStop fanatic of
Speaker 2: the story or in teath the stock, why do we
Speaker 2: care so much.
Speaker 4: About this individual co founder of Chewy So a lot
Speaker 4: of people bet against that, said they would be pets
Speaker 4: dot Com two point zero very successful sale to the
Speaker 4: PetSmart ultimately went public when he was no longer associated
Speaker 4: with the company, made a pretty nice fortune from that.
Speaker 4: He took an activist stake back in twenty twenty in
Speaker 4: Game Stop, then pushed and really helped trigger alongside Keith
Speaker 4: Gill in early twenty twenty one, getting seats on the board,
Speaker 4: pushing for changes, ultimately ousting pretty much the entire management team,
Speaker 4: and now is the chairman, CEO, and president of the company.
Speaker 7: And really the whole belief in Game.
Speaker 4: Stop with Keith Gill's thesis, is that Ryan Cohen will
Speaker 4: be able to turn the company from a brick and
Speaker 4: mortar company that has shown slowing sales has slowan has
Speaker 4: shown a need to close some of those stores and
Speaker 4: completely revamp the business.
Speaker 7: The question is what does that look like? How do
Speaker 7: we get there?
Speaker 4: No one really knows, but that's the whole kind of
Speaker 4: group mentality behind the GameStop bulls, the retail investors who
Speaker 4: really like the stock.
Speaker 7: Is that Ryan Cohen knows.
Speaker 4: He won't tell us, but at some point this is
Speaker 4: going to end up working out. And that's really been
Speaker 4: why we've seen such a wild ride over the last
Speaker 4: three years. And you have to kind of at some
Speaker 4: point of your hat though, because ran Cohen and RC
Speaker 4: Adventures owns about eight and a half percent of the company,
Speaker 4: so he has put his money where his mouth is, and.
Speaker 2: He's put some money in the balance sheet of GameStop too,
Speaker 2: And that's meant Citron, for example, has just exited. It
Speaker 2: short always great to get bad upshots on all of
Speaker 2: the backstory. Google, which has long been a pioneer in
Speaker 2: new technologies like AI, but it's just what's rivals like
Speaker 2: open AI harness its research it seems to leap frog
Speaker 2: it in the world of generative artificial intelligence. So the
Speaker 2: company is reorganized. Originally, Google had two separate AI laps.
Speaker 2: Google Brain researchers kind of pursued passion projects with some
Speaker 2: loose oversight. Of course, the acquired deep Mind, co founded
Speaker 2: by AI Lunar and Dems Hasabis, who had this to
Speaker 2: say about the future of AI development.
Speaker 9: I think AI is overhyped in the short term and
Speaker 9: probably underestimated over the long term, like the what it's
Speaker 9: going to bring, And I think that's probably true of
Speaker 9: a lot of breakthrough technologies. So I think we're seeing,
Speaker 9: because of the popularity of AI now in the last
Speaker 9: couple of years, lots of people trying to get into
Speaker 9: this space who maybe haven't thought about this as long
Speaker 9: as people like us who've been in it for decades.
Speaker 9: And I think we're going to see a sort of
Speaker 9: rationalization process happening.
Speaker 2: Indeed, that rationalization process is upon us with a combination
Speaker 2: of Google's two AI labs in twenty twenty three into
Speaker 2: a super unit called Google deep Mind. Look. It was
Speaker 2: to commercialize products and keep pace some competitors, but several
Speaker 2: employees are saying this move has been undermining the company's
Speaker 2: edge in foundational research. It's a great story written by
Speaker 2: Mark Bergen. We want more on this because is there
Speaker 2: attention internally after these and one year down of an amalgamation.
Speaker 10: Yeah, I mean to be clear, it's Google. There's always
Speaker 10: intentioned internally, it's a it's a big messy company. I
Speaker 10: think what our story does it? I think I'm kind
Speaker 10: of unfolds here. Is that like part of it is geographical, right.
Speaker 10: Deep Minds historically has been London based that Google. Google
Speaker 10: is out of its headquarters in Mountain View. You've had
Speaker 10: these sort of competing labs that in some ways operated
Speaker 10: very differently.
Speaker 7: Deep mind has.
Speaker 10: For the past decade basically an incredibly well funded research
Speaker 10: operation and doing some cutting edge AI, probably the world's
Speaker 10: lead most cutting edge AI is not always connected to
Speaker 10: Google services. Google profits it's commercial center. Now they're they're
Speaker 10: attempting to, i think, swing much more in a focus
Speaker 10: on products, to be Gemini being the flagship one of
Speaker 10: competing with open AI's model. I think there's a lot
Speaker 10: of there's there's still a lot of bumps and warts
Speaker 10: and all in that that merger, and there's always a
Speaker 10: conflict between how much is sort of doing these sort
Speaker 10: of core products versus more exploratory research.
Speaker 2: Talking of bumps and warts and all. The commercialization hasn't
Speaker 2: gone that smoothly, and that is kind of the problem
Speaker 2: of being such a big company where they can't act
Speaker 2: like a startup all the time.
Speaker 10: Yeah, I think so, Although you know, you'd think that it.
Speaker 10: Clearly Google is under a much more scrutiny around for
Speaker 10: the kind of mess ups that they have, right the
Speaker 10: Gemini ones, which we've talked about, And I think that
Speaker 10: that's totally understandable given just how big of their services are,
Speaker 10: right like how many people are are using Google Search
Speaker 10: on a daily basis, and how much responsibility that has
Speaker 10: not just for their their bottom line, but obviously like
Speaker 10: the regulatory scrutiny they're under, and internally, I think that those,
Speaker 10: you know, those screw ups that they've had recently, I
Speaker 10: think there's gonna be some interesting tension about how what
Speaker 10: changes they make when they when they launched, They clearly
Speaker 10: have been scrutinized and criticized for a long time, particularly
Speaker 10: from internally, from moving too slowly, and I think open
Speaker 10: Ai and Microsoft has really push Google to move pretty fast,
Speaker 10: and you could say that some of these pretty public
Speaker 10: snapfoos they've had with Gemini might be a consequence of that.
Speaker 2: Demis of course seeing Alpha fold and medical applications real
Speaker 2: business model, but we see how Gemini continues to evolved
Speaker 2: as well as a great story, go read it. Mart
Speaker 2: Berg and a deep dive on goings on at the
Speaker 2: top when it comes to AI labs becoming one over
Speaker 2: at Google. Welcome back to Rerumot technology. I'm Caroline Hide
Speaker 2: in New York. Quick check on these markets for you,
Speaker 2: and we're currently up four tens percent on the bigger
Speaker 2: benchmarin the NASA one hundred managing to shake off some
Speaker 2: of the anxiety over in European trading. In fact, the
Speaker 2: CAC forty rallies nine tens percent. We see Marine Lapenn,
Speaker 2: of course, the right wing contender trying to take the
Speaker 2: prime ministerial role, saying, look, she will abide and respect
Speaker 2: institutions and indeed work with President Macron. Get a little
Speaker 2: bit of a bounce back, but still the political anxiety
Speaker 2: is there. Bitcoin off by almost two percent. Look, we're
Speaker 2: only at sixty five thousand now, so we've seen some
Speaker 2: profit taking in crypto. More broadly, move on, have a
Speaker 2: look at what some of the individual movers and shakers
Speaker 2: are because we are seeing some individual corporate moves up
Speaker 2: five percent for Autodesk. Why activist investor Starboard value is
Speaker 2: built up a stake in Autodesk, a software company more
Speaker 2: than five hundred million dollars. They want to push for
Speaker 2: changes investors like that Dell Technologies, well, the CEO is
Speaker 2: selling out some more than three hundred million dollars worth
Speaker 2: of the stop, but that does not matter in terms
Speaker 2: of the selling pressure. We're currently up more than six
Speaker 2: point six percent. That seems to be more on analysts
Speaker 2: saying this is still a stock that you should be buying.
Speaker 2: I think it was JP Morgan that have been speaking
Speaker 2: with executives. Indeed it was Morgan Stanley reiterating their topic
Speaker 2: after some management meetings. Meta off by some seven tenths
Speaker 2: of a percent lay, along with a number of social
Speaker 2: media companies really being forced to think about how much
Speaker 2: they look at AI chatbots, but more broadly, how much
Speaker 2: they also look at focusing on the Surgeon General calls
Speaker 2: for some warnings of addiction. Let's move on to look
Speaker 2: at what's happening with Adobe, because we've just had some
Speaker 2: breaking news. We're off by more than three percent, having
Speaker 2: been training higher in a while, down earlier in hours,
Speaker 2: but still off by three point three. The FTC is
Speaker 2: taking action against software maker and two of its executives,
Speaker 2: that's Meninda Sweny and David Wodwani, apparently for deceiving consumers
Speaker 2: by hiding the early termination fees for its most popular
Speaker 2: subscription plan and making it basically difficult to cancel your subscription.
Speaker 2: The FDC just releasing that action. We remain under pressure
Speaker 2: on Adobe after some stellar results last week that pushed
Speaker 2: the stock up more than ten percent. But let's turn
Speaker 2: to another corporate story right now, because we've all been
Speaker 2: thinking about how AI is affecting Microsoft. That seemed to
Speaker 2: be well ahead of Apple, but now not so much
Speaker 2: the case. Ever since the iPhone maker unveiled its own
Speaker 2: AI in CHATCHYBT integrations at the beginning of last week
Speaker 2: for the iPhone, for the Mac, suddenly it feels like
Speaker 2: Microsoft's lead isn't so large anymore. We want to break
Speaker 2: it down when Bluemog's Austin car who's written for the
Speaker 2: Daily newsletter today, all about your own personal feelings of
Speaker 2: whether Microsoft has kind of slipped here. What's your takeaway
Speaker 2: from Apple? Why do you think they've got it right? So?
Speaker 11: I'm an iPhone user and I'm also a Windows PC user.
Speaker 11: I've been sort of using the AI that's come with
Speaker 11: Windows for a little over a year now. Microsoft had
Speaker 11: this big lead, but then Apple launched or announced all
Speaker 11: these AI features last week, from you know, easier ways
Speaker 11: to search for your photos, to making sort of custom
Speaker 11: emojis with AI in your social interactions, interacting with Siri,
Speaker 11: and suddenly I got that same excitement I had with
Speaker 11: Microsoft about a year ago, but which I haven't really
Speaker 11: had since then. These are all new products that are
Speaker 11: coming to the iPhone. They're going to integrate very well
Speaker 11: with my day to day use for the iPhone, iPad, MacBook,
Speaker 11: and so forth. And it's really interesting that, yeah, Apple
Speaker 11: was so far behind, seemingly just you know, a week
Speaker 11: or two ago, and suddenly a lot of consumers are
Speaker 11: really excited about these products they're launching, despite their super
Speaker 11: comparative simplicity with what Microsoft is launching by comparison.
Speaker 2: Investors are pretty excited too, Austin. We're a new record highs.
Speaker 2: We're eclipsing and back to the most valuable company on
Speaker 2: the indices. What is it, more broadly that they're managing
Speaker 2: to integrate. Is it just that they're more consumer focused
Speaker 2: company than Microsoft?
Speaker 8: Is?
Speaker 9: You know?
Speaker 11: I think one of the up sides that they have
Speaker 11: is a lot of these devices and services are already
Speaker 11: in people's hands, so they're sort of sprinkling AI on
Speaker 11: top of I message in case I want to send
Speaker 11: a custom meme. We don't have to download a new
Speaker 11: AI app. You already have series. So it just makes
Speaker 11: them a lot smarter. By comparison, Microsoft has to do
Speaker 11: a lot of the laid work. We don't have a
Speaker 11: Windows phone. Yes you have Windows PCs or Microsoft Word
Speaker 11: and Excel, but it doesn't dominate your day to day
Speaker 11: life at least from a consumer standpoint the same way
Speaker 11: that Apple does. So that's really the upside that a
Speaker 11: company like Apple has. You were just talking earlier about Google.
Speaker 11: They run into a lot of these issues all the
Speaker 11: time because people expect it their Gemini product to be
Speaker 11: as good as Google Search, and it's just not easy.
Speaker 11: Whereas Apple is coming in and saying, we're just going
Speaker 11: to do a lot of simple things and do them
Speaker 11: very very well and add them to the products that
Speaker 11: you're already used to. So they're not reinventing chat GPT,
Speaker 11: they're not trying to become a chat GPT competitor. In fact,
Speaker 11: they're integrating with chat GPT and anything that they can too.
Speaker 11: They'll just boot you over to chat GPT and integration
Speaker 11: that I'm sure Microsoft is a little bit jealous of
Speaker 11: considering they invested about thirteen million dollars into open Ai.
Speaker 2: True, Austin Carr has a great read. Thanks so much
Speaker 2: for coming on and giving us the feels around Apple. Meanwhile,
Speaker 2: let's stick with AI because it would seem like we
Speaker 2: vented kind of the AI startup. M and A. Season's
Speaker 2: growing number of artificial intelligence startup founders. Basically they're looking
Speaker 2: to sell their companies. Why because it's so expensive for
Speaker 2: the compute power. CEO of Hugging Face is with us,
Speaker 2: which is just acquired a small company called a Gilla
Speaker 2: of ten million dollars forth acquisition to date, and he
Speaker 2: kind of told us that this might be occurring in
Speaker 2: the market. Cland along joins us some more. CEO of
Speaker 2: Hugging Face and what was it but a month or
Speaker 2: so ago they were sat in San Francisco and You're like,
Speaker 2: this is happening. This M and A is real, And
Speaker 2: I'm getting a lot of calls offering to sell the
Speaker 2: startup to me. But you went out and found this
Speaker 2: on yourself.
Speaker 12: Yes, And I think it's just just the beginning. I
Speaker 12: think we're going to start to see much many more
Speaker 12: acquisitions in the next the next few months. This acquisition
Speaker 12: is a good example. Aguila is a fantastic team based
Speaker 12: out of Spain working on a tremendously important topic, data
Speaker 12: sets and data for AI. Their name Aguila means clay
Speaker 12: in Spanish. That's a good image for what data sets
Speaker 12: and data are in AI. They're kind of like the foundation,
Speaker 12: the soil that allows machine learning and AI to grow.
Speaker 12: So we're super excited about about this, and I feel
Speaker 12: like this is just the beginning for a man a
Speaker 12: for hurging Facebook, for the field of AI in general too.
Speaker 2: Okay, so when you look at a ten million dollar deal,
Speaker 2: but I think the team's going to remain intact and
Speaker 2: they're almost going to continue to operate as they have been.
Speaker 2: How else would you want M and A to happen
Speaker 2: for hugging face? Will you do such sort of standalone deals?
Speaker 2: Will they get bigger?
Speaker 7: Maybe?
Speaker 12: I think it all depends on the talents, on the opportunities.
Speaker 12: As I was sharing with one of your other reporters,
Speaker 12: the volume of acquisition opportunities as really sky located in
Speaker 12: the past few months. Just Pacelona, I realized that we
Speaker 12: receiving over ten acquisition opportunities a week these days to
Speaker 12: its company.
Speaker 2: Emails, how are you getting at emails?
Speaker 12: Yeah, emails mostly or connecting with me on social social
Speaker 12: media definitely increased. So it's really interesting to see. I
Speaker 12: think there's this natural tendency of like console nutrition in
Speaker 12: AI and some companies like Hugging Face or others becoming
Speaker 12: some sort of magnets, right because of the visibility that
Speaker 12: we have, the talent that we have to compute that
Speaker 12: we have. Uh and for all these startups that have
Speaker 12: good teams that have maybe early traction but might not
Speaker 12: attract the level of VC funding that is required for AI, Yeah,
Speaker 12: there's going to get a lot of opportunities for them
Speaker 12: to join other teams, which is which is an interesting trend.
Speaker 2: Because you've raised hundreds of millions and there's Google, Amazon
Speaker 2: and Video all the all the whost who of corporate
Speaker 2: VC is invested in your previous round, so you've got
Speaker 2: the cash to be able to make these acquisitions. Got
Speaker 2: the compute power. Is there any theme of where these
Speaker 2: companies that are currently wanted to sell themselves are coming from?
Speaker 2: Is it geographical or is it within the statler like
Speaker 2: where is what are the problems they're trying to solve.
Speaker 12: So I think a lot of it is a power
Speaker 12: lel to the concentration of VC bets in a way.
Speaker 12: I think right now vices are taking heavy, heavy bets
Speaker 12: on a couple of like very hot topics like for example,
Speaker 12: large language models. Right, you've seen maybe different raising of
Speaker 12: Mistrial out of France a coup a couple of days ago.
Speaker 12: And so when the startups are working on topics that
Speaker 12: are a little bit less hype for VC, like for
Speaker 12: example here it's data sets, it's kind of like a
Speaker 12: different different picture, it's a different life. It's like a
Speaker 12: you know, I won't quote like quoting Rocky the world
Speaker 12: and all like sunshine and rainbows for AI startups that
Speaker 12: are working on like less sexy AI topics. Yeah, and
Speaker 12: so we see a lot of opportunities in there, and
Speaker 12: it's it's super exciting because for example here for Aguilla
Speaker 12: working on data sets, on data which in my opinion
Speaker 12: now is becoming like the bottleleck or like the most
Speaker 12: important So pick for EI, right, because better data allows
Speaker 12: companies to take three base for example, and then find
Speaker 12: units and get better results for their use case than before.
Speaker 12: So all these other two things that another that hype
Speaker 12: are super interesting.
Speaker 2: I have to leave it there. I climbed along making
Speaker 2: the un sexy sexy for your business. We appreciate it.
Speaker 2: See you hugging face. Coming up, we're going to be
Speaker 2: talking about perhaps a little bit of M and A
Speaker 2: where they value lise VC Spotlight FPV Ventures managing partner
Speaker 2: Wesley Chan joins us. Let's some quick look what's happening
Speaker 2: in the public markets too, though, because the FDC is
Speaker 2: taking action against Adobe and executives for hiding fees, says
Speaker 2: the Federal Trade Commission, preventing consumers from easily canceling software
Speaker 2: subscriptions down by more than three percent. They were down
Speaker 2: prior to this announcement. This will bring me technology time
Speaker 2: now for talking tech. First up, the US Surgeon General.
Speaker 2: It's calling for warning labels on social media sites similar
Speaker 2: to those that you'll find on a cigarette card. Top
Speaker 2: health officials are calling on sites such as TikTok Instagram
Speaker 2: to include a warning to parents and it could harm
Speaker 2: the mental health of children. Legislation on the labels have
Speaker 2: yet to be introduced. Plus, Indian fintech firm PATM is
Speaker 2: in talks to sell its movie and ticketing business to
Speaker 2: Zamato as it looks to unload long court assets, and
Speaker 2: the discussions between PATM and online food delivery firms Tomato
Speaker 2: are in a band stages, though other suitors have voiced interest,
Speaker 2: and the US Supreme Court has agreed to review a
Speaker 2: case over in Video's crypto mining revenue, and Video is
Speaker 2: seeking to stop an investor suit accusing the company being
Speaker 2: deceptive about its crypto mining revenue before a twenty eighteen
Speaker 2: market downturn that the justices say they will hear in
Speaker 2: Videos contentions that the company lacks enough a simplicity to
Speaker 2: go forward now time for VC Spotlight. Joining us today
Speaker 2: is Wesley Chan FPV Ventures, co founder, a managing partner.
Speaker 2: And it's interesting that we talk about Nvidio just for
Speaker 2: our segment and you're kind of the anti AI voice
Speaker 2: in the room at the moment. Why what are you
Speaker 2: feeling around the hype?
Speaker 13: I think there's too many people right. I love in
Speaker 13: contra and investing. When I invested in Canva on the
Speaker 13: Series A, there's one hundred and eleven investors that told
Speaker 13: them no, right, you're too far away. Or in Australia,
Speaker 13: we don't get how this is going to work with
Speaker 13: Adobe and Microsoft having these amazing tools in the market,
Speaker 13: we all people trained on them, and all of a sudden,
Speaker 13: Canva is now being used by everybody under thirty five
Speaker 13: with over two billion of revenue. So I always look
Speaker 13: at it as what's the contrarian bet that we can
Speaker 13: be making. And if everybody's rushing into the fire or
Speaker 13: rushing away from the fire, what fire should we be
Speaker 13: running into.
Speaker 7: It's kind of like going to.
Speaker 13: Europe in the middle of the summer when everybody's off
Speaker 13: in school, you get crowd, you overpay. Every hotel room
Speaker 13: is a thousand euros a night. You want to be
Speaker 13: going in the middle of winter when it's empty and
Speaker 13: you can get the entire museum to yourself.
Speaker 7: So that's what we look for.
Speaker 13: We're not so much anti AI as we are conturring
Speaker 13: and we want to go bet and place the place
Speaker 13: the investment when the timing is right.
Speaker 2: Okay, So where is the timing rightful right now? Where
Speaker 2: is the original check into Canva luring laying right now?
Speaker 13: Well, some of the interesting bets are in areas where
Speaker 13: nobody thinks AI can can can make a difference, right.
Speaker 13: So one area that we're spending a lot of time
Speaker 13: is in drug development, in drug discovery.
Speaker 2: So I hear a lot of people thinking AI is
Speaker 2: going to change structures.
Speaker 13: Well, they're not making the bets yet, right, Like, if
Speaker 13: you look at companies in biotech right now, it's still
Speaker 13: kind of half dead, right, Like, there are investors investing
Speaker 13: in the lms, they're investing in the data management, some
Speaker 13: of them are investing into drug discovery, but not much.
Speaker 13: Right We just did a big investment in a company
Speaker 13: called in Data. They announced a fifty five million dollars
Speaker 13: round and they use AI to train on mass spectrometry data.
Speaker 13: It's the same AI that they're training that you're finding
Speaker 13: on chat GVT, but they're training it on models and
Speaker 13: they're training it on data from mass spectrometries like the
Speaker 13: machines that you see on CSI, and they're trying to
Speaker 13: use that to discover new molecules that can cure cancer,
Speaker 13: that can like cure major diseases in natural compounds. And
Speaker 13: they're already found quite a few, and hence Microsoft has
Speaker 13: made a big investment into them. Again, it was not
Speaker 13: obvious when we made the investment. It was concern. Everybody
Speaker 13: sat there and said, well, chat GPT's great for all
Speaker 13: this tech stuff and for writing essays and for helping
Speaker 13: high school students sort of create and re research, and
Speaker 13: all of a sudden, we have a company that's figured
Speaker 13: out how to discover new molecules.
Speaker 7: Using some of the same AI tools.
Speaker 13: That's not obvious. A lot of people thought that was
Speaker 13: crazy when we made the bet.
Speaker 2: You're making very early bets, and I'm interested as to
Speaker 2: how long you ride with the bet, how much you
Speaker 2: can pay to play throughout the series that we get
Speaker 2: because we're kind of these corporate vcs wanting to come
Speaker 2: in on later rounds and then they wanting a cleaner
Speaker 2: capital base. Are they wanting to push people in earlier
Speaker 2: investors out.
Speaker 13: And I'm fine with corporate vcs coming It makes me
Speaker 13: look good if they're, like, you know, coming into the
Speaker 13: round after we made the investment. The important thing is
Speaker 13: we have to find the right timing and find the
Speaker 13: right moment when the founders have discovered a unique insight
Speaker 13: using the AI or using tools as within that AI
Speaker 13: provides to help them figure out how to make you
Speaker 13: know something major different right, whether it's drug discovery or
Speaker 13: it's helping people figure out how how to better balance
Speaker 13: their checkbooks or whatnot like that that moment in time
Speaker 13: when the founder sort of says like this will change
Speaker 13: because of AI, or this will change and I'm using
Speaker 13: AI to help make that change.
Speaker 7: That's where we get excited and you.
Speaker 2: Can continue throughout all the series.
Speaker 7: We were a venture fund, right.
Speaker 13: One of the most amazing thing about venture funds is
Speaker 13: we have a ten year lifetime on the fund. Right,
Speaker 13: we'd like companies to exit earlier, but you know, our
Speaker 13: LPs are all long term investors, right, They're all endowments,
Speaker 13: they're all charitable institutions or university endowments.
Speaker 1: Right.
Speaker 13: They know that there's a ten year time horizon, and
Speaker 13: that's one of the greatest things that we have going
Speaker 13: for us in this business.
Speaker 7: I'm not making the bet for tomorrow.
Speaker 13: So that like some big corporate vis comes in the
Speaker 13: marks of the deal, We're placing the bet for a
Speaker 13: ten year down the road. People forget that Google took,
Speaker 13: you know, almost a decade to really realize it's a
Speaker 13: major potential, right at IPO six years after it was
Speaker 13: after its founding in two thousand and four, But it
Speaker 13: really was ten years when YouTube and when Android and
Speaker 13: when some of the bets that they placed early on
Speaker 13: in the early days of Google became to fruition.
Speaker 7: And same with Canada. Right ten years.
Speaker 13: It's been ten years and now everybody's sort of seeing
Speaker 13: how obvious it is. But back for the first five years,
Speaker 13: everybody sort of out there and scratched their head and said,
Speaker 13: I didn't get it.
Speaker 2: What about getting out? Like what about sort of a
Speaker 2: company that does initially seem to do incredible work Flexport
Speaker 2: for example, and then has some tensions at the top
Speaker 2: and reorganization. Do you stick with them throughout that iteration?
Speaker 7: Absolutely?
Speaker 13: I mean I still hold every share of Flexport stock
Speaker 13: that I've invested in, right. I believe in Ryan and
Speaker 13: his team that much. It's the same with Google. When
Speaker 13: Google iPod, a lot of people have sort of said,
Speaker 13: let's dump the stock, like I don't get it. Like,
Speaker 13: you know, this company has hit its peak and at
Speaker 13: eighty five dollars a share, I think it's at sixteen
Speaker 13: or seventeen thousand dollars dollar a share. Right, that IPO
Speaker 13: investment at Google is one of the best venture investments
Speaker 13: of all time. Right, too bad we don't do public equities,
Speaker 13: but it's one of those things where I look at
Speaker 13: it and go. Does this company have ten years of
Speaker 13: inflection points and does it have more coming? And the
Speaker 13: founders that we invest in, the mission driven founders that
Speaker 13: truly understand how the world will change when they create
Speaker 13: what they're creating, those are the ones that we care about,
Speaker 13: and they usually, you know, create a hundred year of plans.
Speaker 13: I still remember Mal's hundred year plan in canber right
Speaker 13: like she grafted it out on a pirate ship map.
Speaker 2: And I'm sure who perhaps had some insight to Google's
Speaker 2: a hundred year pan as well as you were over
Speaker 2: at Google Analytics and Google Voice or see. It's always
Speaker 2: great to get your controller inviews.
Speaker 7: Thank you, thank you for having me.
Speaker 2: Meanwhile, of course that's SPV ventures see Chang.
Speaker 1: Oh.
Speaker 2: It's a big weekend in the box office picks Ars
Speaker 2: Inside Out too, seeing the best film debut since Barbie.
Speaker 2: It scros one hundred and fifty five million dollars at
Speaker 2: the box office in the US and Canada. Meanwhile, social
Speaker 2: media has been a buzz with the streaming debut of
Speaker 2: season two of House of Dragon, which premiered last night.
Speaker 2: There's a lot in terms of content, not to mention
Speaker 2: the latest film that actually will be allowed in China
Speaker 2: from Walt Disney, Let's stock it All with Githa Ranganath
Speaker 2: and of Bloomberg Intelligence focus in on Disney for a
Speaker 2: moment and the content and the fact that we've got
Speaker 2: people going back to the theaters. Do they just need
Speaker 2: the right movie at the right time with the right
Speaker 2: kind of audience.
Speaker 1: I absolutely think so. And Disney is back in a
Speaker 1: big way, definitely. Big Star is back in a big
Speaker 1: way of Caroline, and so is the barks office. I mean,
Speaker 1: the box office has been really sleepy the whole of
Speaker 1: this year and especially this summer season, and for Disney
Speaker 1: in particular. I mean, we know they've had a whole
Speaker 1: string of misfires, especially Pixar. We know that they released
Speaker 1: three movies direct to streaming during the pandemic era, and
Speaker 1: then after that, you know, they had light Year, they
Speaker 1: had Elemental, which kind of really struggled at the box office.
Speaker 1: But it looks like Inside Out, Too is really resonating
Speaker 1: with everybody. And I think, you know, of course, it
Speaker 1: is a movie that appeals to kids, but I think
Speaker 1: also to parents like you and me, and it's just
Speaker 1: such an emotionally charged film, and box office is all
Speaker 1: about emotion. So they obviously got the formula right.
Speaker 2: Every single parent of teen girls I'm talking to once
Speaker 2: they'd be able to discuss anxiety and how we come
Speaker 2: by this. And so this is one way I'm interested
Speaker 2: though about the global box office. Interestingly, we got on
Speaker 2: social media while Disney saying, look, we are going to
Speaker 2: bring Deadpool and wolverineto China. That's a big deal.
Speaker 1: It's a huge deal. I mean, what we've seen over
Speaker 1: the past few years with China is that Western movies
Speaker 1: have kind of fallen out of favor a little bit.
Speaker 1: So if you just look at kind of how the
Speaker 1: Chinese box office has performed, Actually, China is one of
Speaker 1: the leading markets right now. If you look at year
Speaker 1: to date box office receipts, they're actually ahead of the US.
Speaker 1: So China is definitely critical to the global box office equation.
Speaker 1: And if you kind of just look at how Hollywood
Speaker 1: movies have performed in China, about ten years ago they
Speaker 1: made up almost fifty percent of the Chinese box office.
Speaker 2: That kind of.
Speaker 1: Has been shrinking, so that was down to about thirty
Speaker 1: five percent and twenty nineteen and this year it's probably
Speaker 1: down to about ten percent.
Speaker 2: So having a big movie like.
Speaker 1: This, and especially one of the most anticipated movies of
Speaker 1: the summer, Deadpool and Wolverine go out in China. It
Speaker 1: is big news for Disney Night. Hopefully it will be
Speaker 1: big for the Chinese box office too.
Speaker 2: What's interesting, though, is you say, the tension around whether
Speaker 2: any of us can be bothered to go to the
Speaker 2: theater right now when we can consume such great content
Speaker 2: when we sat a comfort to our own sofa, and
Speaker 2: to a large extent, House Dragon is exactly that. We
Speaker 2: are still wanting to see new content, but quite often
Speaker 2: from franchises we.
Speaker 1: Know, oh absolutely, and you know that's exactly what some
Speaker 1: of these streaming platforms are are betting on, kind of
Speaker 1: making these investments in what they know, you know, will
Speaker 1: be appointment television and HBO and Max have obviously been
Speaker 1: the leaders, the global leaders when it comes to that,
Speaker 1: and of course House of Dragon, the Game of Thrones,
Speaker 1: all of these are you know, huge, huge titles for them,
Speaker 1: and they want to make that an event and an experience.
Speaker 1: But you're absolutely right, you know, this past week and
Speaker 1: n has been such a big win, not just for
Speaker 1: you know, box office and movie going in general, and
Speaker 1: people are going and watching movies more in big screens.
Speaker 1: That is that is huge news. So this is they're
Speaker 1: making it like a whole big event. But then they're
Speaker 1: also coming back home and then you know, kind of
Speaker 1: relaxing on their couches and watching some great streaming content
Speaker 1: as well.
Speaker 2: Summer line up. Eethther Rangon Anthon, We thank you bloombg
Speaker 2: Intelligence some great analysis and that does it for this
Speaker 2: edition of bloombag Technology. I forget to check out our
Speaker 2: podcast find on the terminal as well as online on Apple, Spotify,
Speaker 2: and iha, this is blombg Technology