WEBVTT - Magnificent Seven Momentum and GameStop's AGM 0:00:01.440 --> 0:00:05.120 From Marhart where Innovation of Money and Power Collie in 0:00:05.240 --> 0:00:10.160 Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde 0:00:10.160 --> 0:00:11.559 and Ed Ludlow. 0:00:24.600 --> 0:00:26.920 And Caroline Heydet Bloomberg's world headquarters in New York. Ed 0:00:26.960 --> 0:00:31.320 Ludlow is off. This is BlueBag Technology. Full market coverage 0:00:31.320 --> 0:00:34.960 ahead as a magnificent seven see momentum rally like never 0:00:35.000 --> 0:00:37.960 before last. We push your head to gamestops AGM as 0:00:38.000 --> 0:00:41.760 CEO Ryan Cohen gears up to deliver remarks, and we 0:00:41.800 --> 0:00:44.480 take a look at the summer box office as inside 0:00:44.520 --> 0:00:46.640 out to raks in over one hundred and fifty million 0:00:46.680 --> 0:00:50.559 dollars over the weekend. First, let's check in on those 0:00:50.600 --> 0:00:54.560 markets because we are seeing some pause, shall we say, 0:00:54.800 --> 0:00:57.200 We are looking at what the federal Reserve comments are 0:00:57.200 --> 0:00:59.600 going to be this week after the policy yes last 0:00:59.640 --> 0:01:02.360 week signaled maybe are we going to get the eight 0:01:02.400 --> 0:01:05.040 cuts that the market is anticipating. More notably, is the 0:01:05.080 --> 0:01:08.200 political tension still happening over in Europe? Tenure yield just 0:01:08.360 --> 0:01:11.679 actually selling off significantly after there was this push for 0:01:11.720 --> 0:01:14.560 Haven's last week. That calms a little. Why does it calm? 0:01:14.600 --> 0:01:17.080 Because Marie la penn Over in France right wing. Of 0:01:17.120 --> 0:01:19.279 course the person that we could see become prime minister 0:01:19.440 --> 0:01:23.319 if indeed we do see this role, this legislative vote 0:01:23.360 --> 0:01:26.920 go her direction. She's trying to calm the market, trying 0:01:26.920 --> 0:01:29.920 to calm well the broader French population to say she 0:01:29.959 --> 0:01:33.399 would be still backing institutions and she's support Macran if 0:01:33.440 --> 0:01:35.560 she did indeed become prime minister while he was president. 0:01:35.600 --> 0:01:38.880 Cat forty sees some relief around nine ten percent move on. 0:01:38.959 --> 0:01:41.520 See what's happening on the individual movers today, because we 0:01:41.600 --> 0:01:44.520 are seeing a little bit of movement on what's happening 0:01:44.600 --> 0:01:46.440 in the chip sect. And now the socks was previously 0:01:46.480 --> 0:01:48.200 at a record high. We dive back from that as 0:01:48.360 --> 0:01:50.720 Nvidia indeed sinks. One hundred and thirty dollars is where 0:01:50.760 --> 0:01:53.200 we currently trade. We're getting some big calls from some 0:01:53.200 --> 0:01:55.840 big investors and analysts still saying, look, we could go 0:01:55.880 --> 0:01:58.640 as high as one hundred and sixty dollars Suskahanna pointing 0:01:58.720 --> 0:02:00.760 us in that direction, but we just perhaps take profits. 0:02:00.760 --> 0:02:02.840 As we hit a new record high. Micron though up 0:02:02.880 --> 0:02:05.680 another two percent as we see analysts upgrade their price 0:02:05.680 --> 0:02:08.480 target on this particular stock. Broadcom also winning as we 0:02:08.520 --> 0:02:11.240 look towards that stock split. They follow hot on the 0:02:11.280 --> 0:02:13.799 heels of Nvidia one hundred and ninety eight is where 0:02:13.840 --> 0:02:17.480 we trade. But look, we have seen these particular chip 0:02:17.720 --> 0:02:20.960 names do phenomenally well over the course of this year, 0:02:21.000 --> 0:02:24.320 and many are saying this is momentum strategy that's winning. Basically, 0:02:24.400 --> 0:02:27.040 what you do you buy the winners and you sell 0:02:27.080 --> 0:02:29.320 the laggards. It's always kind of a powerful force in 0:02:29.360 --> 0:02:31.680 the markets, but right now it has got a complete 0:02:31.840 --> 0:02:33.880 tear on a scale that we've never seen before. We 0:02:33.919 --> 0:02:35.799 want to break it all down with bluebgg's Isabelle Lee, 0:02:35.880 --> 0:02:38.760 and it's a great bit of reporting coming from Bloomberg 0:02:38.840 --> 0:02:42.960 across our outlets, really talking about how much this momentum 0:02:42.960 --> 0:02:44.640 trade can stick because it's working. 0:02:45.160 --> 0:02:47.680 Yes, it's definitely working on a scale never seen before. 0:02:47.680 --> 0:02:49.600 A de relative performance has their pass to that of 0:02:49.639 --> 0:02:51.600 the dot com bubble, which was in two thousand, so 0:02:51.639 --> 0:02:54.360 it's around twenty four years and it's really simple. You 0:02:54.400 --> 0:02:56.600 buy what's winning, you sell what's losing. But the question 0:02:56.760 --> 0:02:59.120 is will at last? And momentum has a tendency to 0:02:59.200 --> 0:03:01.280 go on and and thing until something stops. 0:03:01.320 --> 0:03:01.400 It. 0:03:01.840 --> 0:03:03.720 Worth noting though, that this stretch has been going on 0:03:03.800 --> 0:03:06.400 for quite a while, longer than usual. But what's concerning 0:03:06.480 --> 0:03:09.200 is how they're driving force is really most evaluations. It's 0:03:09.240 --> 0:03:12.079 not anything about great momentum, about earning. So this is 0:03:12.120 --> 0:03:15.000 why some people are worried that it might buckle any 0:03:15.040 --> 0:03:17.160 time now. But then, just with anything, this is the 0:03:17.200 --> 0:03:19.120 winning trade. There will always be losing trade, and the 0:03:19.160 --> 0:03:21.440 losing one is value. But of course, if you're invested 0:03:21.480 --> 0:03:23.680 in momentum, and if you're tracking momentum, it's a great 0:03:23.720 --> 0:03:26.760 year so far, and the strategies that Bloomberg tracks are 0:03:26.800 --> 0:03:29.919 thirteen and top of the list momentum sixteen percent. 0:03:30.040 --> 0:03:31.920 It's interesting that you say some of the worry is 0:03:31.919 --> 0:03:34.440 about whether it's on valuation, whether it's on earnings. Now, 0:03:34.639 --> 0:03:39.560 some would say in Vidia's earnings increases do indicate evaluation optake, 0:03:39.600 --> 0:03:41.040 but is it just the breadth. Is it some of 0:03:41.080 --> 0:03:42.800 the other names that are getting swept in on this, 0:03:43.160 --> 0:03:45.800 that are moving more on valuation the natural earnings guidance. 0:03:46.200 --> 0:03:46.760 So that's fair. 0:03:46.800 --> 0:03:48.960 I mean, I think in Nvidia, every time I ask 0:03:49.000 --> 0:03:51.160 about in Nvidia, I do get Bolls and Bear. So 0:03:51.240 --> 0:03:53.400 it's like there's even no consensus. But the thing about 0:03:53.400 --> 0:03:56.120 this AA rallies. The big winners are getting bigger, and 0:03:56.160 --> 0:03:57.960 obviously everyone is left behind. I mean, you take a 0:03:57.960 --> 0:03:59.760 look at Apple Apple last week, so one if it's 0:03:59.840 --> 0:04:01.920 best this week in years just because of one announcement. 0:04:02.120 --> 0:04:05.320 And the thing is, it's interesting that these announcements wouldn't 0:04:05.320 --> 0:04:07.119 even roll out in the near future, so how will 0:04:07.160 --> 0:04:09.240 we test whether they will work? But then, for the 0:04:09.280 --> 0:04:13.080 longest time, Microsoft's lead towards against Apple seem far, But 0:04:13.200 --> 0:04:15.600 now Apple is inching towards Microsoft just because of that 0:04:15.600 --> 0:04:19.960 one announcement of an Aichat GPT like integration basically to 0:04:20.000 --> 0:04:21.200 compete with Microsoft. 0:04:21.240 --> 0:04:21.720 So that's the thing. 0:04:21.760 --> 0:04:24.360 The players are so narrow and whether the momentum trade 0:04:24.360 --> 0:04:26.760 will last remains to be seen. Is AI really going 0:04:26.800 --> 0:04:29.400 to be a transformative technology that will drive profits and 0:04:29.400 --> 0:04:31.880 productivity or is it just going to give some companies 0:04:32.640 --> 0:04:34.200 a handful of cash for the meantime. 0:04:34.640 --> 0:04:36.880 Well, I'm sure the companies are liking the handful as 0:04:36.880 --> 0:04:38.839 a cash for the time being. And indeed the investor 0:04:38.839 --> 0:04:41.159 is the bit on the winners as well. Lea breaking 0:04:41.200 --> 0:04:42.839 it all down, let's talk about what could be the 0:04:42.839 --> 0:04:45.000 castalyst that puts it to an end. Please to welcome 0:04:45.040 --> 0:04:48.039 Megan Horneman to the show. It's Capital Advisors CIO, and 0:04:48.320 --> 0:04:51.279 to that point, this has been a runaway trade, the 0:04:51.320 --> 0:04:53.440 momentum trade. What could stop it? 0:04:55.120 --> 0:04:57.480 So you know, you mentioned it, it's a momentum trade. 0:04:57.480 --> 0:04:59.680 So to be able to figure out exactly what we'll 0:04:59.720 --> 0:05:04.040 stop bit it's basically impossible. But we think that there's 0:05:04.080 --> 0:05:06.120 a couple of things to keep in mind. The interest 0:05:06.200 --> 0:05:08.760 rates right now. We did get that flight to quality 0:05:08.839 --> 0:05:12.159 last week, so yields went down markets like that, but 0:05:12.200 --> 0:05:13.920 then take a look at what's happening today. 0:05:14.040 --> 0:05:16.560 Yields are backing up. That can take some. 0:05:16.480 --> 0:05:19.440 Of this momentum matter this rally, because what's going to 0:05:19.520 --> 0:05:22.040 happen is people will just start looking at valuations. And 0:05:22.360 --> 0:05:25.839 with the uncertainty around where interest rates are going, we 0:05:25.880 --> 0:05:28.359 obviously know that eventually the federal cut rates, we just 0:05:28.400 --> 0:05:31.599 don't know when and when you're looking at long term yields, 0:05:31.600 --> 0:05:34.200 when you're looking at the treasury market, the dynamics in 0:05:34.240 --> 0:05:37.279 the treasury market are just for higher yields because we 0:05:37.360 --> 0:05:40.240 have so much issuance that's out there, and this is 0:05:40.279 --> 0:05:42.040 something we think could take some wind out of this 0:05:42.160 --> 0:05:43.760 sale here. It's just so it can be a valu 0:05:44.160 --> 0:05:45.159 valuation correction. 0:05:46.080 --> 0:05:48.240 Really interestingly, you're looking at what's happening in terms of 0:05:48.279 --> 0:05:52.080 supply side with treasuries, Well, what about the inflation picture. 0:05:52.120 --> 0:05:55.040 What have you been taking from the PPI, the CPI 0:05:55.200 --> 0:05:57.760 and whether or not we are cooling or whether actually 0:05:57.800 --> 0:05:59.640 we're still just too high for too long. 0:06:01.480 --> 0:06:03.200 It is cool and the data we got last week 0:06:03.279 --> 0:06:05.600 was good news, but let's keep in mind it was 0:06:05.640 --> 0:06:08.600 one month's data and we still are far way away 0:06:08.600 --> 0:06:10.560 from where the FED wants to be. And when you 0:06:10.600 --> 0:06:13.280 actually dig into some of those reports, this is a 0:06:13.320 --> 0:06:15.039 goods deflation story. 0:06:15.160 --> 0:06:18.680 This isn't a service deflation story. In fact, we're still looking. 0:06:18.560 --> 0:06:21.440 At service prices that are quite sticky, and housing as 0:06:21.480 --> 0:06:23.800 well is another thing that's sticky. These are things that 0:06:23.839 --> 0:06:27.080 the FED is going to be taking into consideration. This 0:06:27.160 --> 0:06:28.560 is why we think and we kind of lay in 0:06:28.600 --> 0:06:30.880 the camp hire for a little bit longer. We might 0:06:30.920 --> 0:06:33.680 get something in December, but we need a lot more 0:06:33.720 --> 0:06:36.120 information before we can say that the Fed can do that. 0:06:36.520 --> 0:06:39.159 And just add in, as you say, that flight to quality, 0:06:39.240 --> 0:06:42.240 that volatility that we see because of political risk over 0:06:42.279 --> 0:06:44.320 in France of all places. I mean, how much Megan 0:06:44.480 --> 0:06:47.320 do you have to take in the global geopolitical risks 0:06:47.360 --> 0:06:47.760 right now. 0:06:49.040 --> 0:06:50.880 I think it's something we have to consider when you're 0:06:50.880 --> 0:06:52.640 coming into this year. We knew we had a lot 0:06:52.640 --> 0:06:56.080 of elections and political risks globally, and let's keep in 0:06:56.080 --> 0:06:59.400 mind we still gotten to November here in the US. 0:07:00.000 --> 0:07:02.440 There's a lot from a political standpoint through this summer 0:07:02.680 --> 0:07:05.000 that can keep the markets on edge. And it just 0:07:05.080 --> 0:07:07.520 tends to be when there's so much risk out there. 0:07:07.560 --> 0:07:10.120 But there's so the markets are so high, you know, 0:07:10.280 --> 0:07:13.880 what's the upside risk from here? That's what I don't see. 0:07:13.920 --> 0:07:16.120 I see a lot more downside risks from here than 0:07:16.160 --> 0:07:17.600 I do upside catalysts. 0:07:17.960 --> 0:07:21.400 So what to do as a chief investment officer of 0:07:21.920 --> 0:07:24.600 capital advices? I mean, where do you see? Is it 0:07:24.680 --> 0:07:29.120 protecting your downside or is it hedging or is it 0:07:29.160 --> 0:07:31.000 more sort of reallocating in some way. 0:07:32.360 --> 0:07:36.160 So at this point, there's hold cash, keep a good 0:07:36.280 --> 0:07:39.960 amount of dry powder that you can take advantage of opportunities. 0:07:40.200 --> 0:07:43.440 That's what we've been doing. Cash isn't hurting you right now. 0:07:43.800 --> 0:07:46.760 You're getting five percent or more. Eventually that won't be 0:07:46.840 --> 0:07:49.320 the case, but for now you have the cash to 0:07:49.440 --> 0:07:51.320 be able to look for opportunities, and there will be 0:07:51.360 --> 0:07:54.280 opportunities right now if you look at the market perts 0:07:54.360 --> 0:07:57.200 the market that are really unloved, look at small and 0:07:57.280 --> 0:07:58.160 MidCap stocks. 0:07:58.200 --> 0:08:00.480 Now the economy starts to roll over. 0:08:00.400 --> 0:08:02.520 They're going to struggle a bit, but that's the time 0:08:02.520 --> 0:08:05.280 to take advantage because that's where you see the best 0:08:05.360 --> 0:08:07.520 upside as we get out of this, you know, an 0:08:07.600 --> 0:08:11.840 economic slowdown, and they're priced so on a relative basis 0:08:12.120 --> 0:08:14.320 versus large cab the cheapest we've ever seen. 0:08:15.280 --> 0:08:18.000 When you're thinking of a technology show such as ours, 0:08:18.040 --> 0:08:21.520 and many want to understand the realities you need to 0:08:21.560 --> 0:08:23.520 be diversified, but they also want to understand where the 0:08:23.520 --> 0:08:27.280 opportunities are outside of mag seven in technology, like is 0:08:27.320 --> 0:08:29.800 there a play for tech or indeed AI in small 0:08:29.840 --> 0:08:32.719 or medium sized companies, So. 0:08:33.000 --> 0:08:36.160 You know, the AI is here with us, it's been here, 0:08:36.160 --> 0:08:39.520 but it's just only going to evolve going forward. The 0:08:39.559 --> 0:08:41.760 one thing when you think about AI is it's not 0:08:41.880 --> 0:08:44.040 just technology. And I know it's a technology show, so 0:08:44.080 --> 0:08:47.880 I apologize, but let's look at other areas of the 0:08:47.920 --> 0:08:49.760 market that will benefit from AI. 0:08:49.920 --> 0:08:51.920 So what are the companies and sectors that are going. 0:08:51.840 --> 0:08:55.200 To benefit from implementing AI that that we can see 0:08:55.200 --> 0:08:57.160 that in their earnings. Those are some of the things 0:08:57.200 --> 0:09:01.840 that we're looking at. Industrial is an idea some consumer stocks. 0:09:01.920 --> 0:09:04.600 I think it's right now a little bit cautious because 0:09:04.600 --> 0:09:07.880 the economy is weaken and consumers are definitely stretched. But 0:09:08.000 --> 0:09:10.160 think of where the companies that are going to benefit 0:09:10.240 --> 0:09:12.120 from the use of AI going forward. 0:09:12.640 --> 0:09:15.720 What about energy, I mean, there's a great story, very 0:09:15.760 --> 0:09:18.000 well read all about the focus of Bill Gates at 0:09:18.040 --> 0:09:20.920 the moment, perhaps on nuclear energy, and I'm wondering whether 0:09:20.960 --> 0:09:23.360 you're seeing energy and some of the infrastructure needed for 0:09:23.400 --> 0:09:25.920 this new AI paradigm shift as a place to bet. 0:09:27.040 --> 0:09:27.280 Yeah. 0:09:27.600 --> 0:09:30.520 Absolutely, that is an area. Look at what utilities have 0:09:30.559 --> 0:09:32.520 been doing as well because of the use for it. 0:09:32.559 --> 0:09:35.839 But the infrastructure side, we don't have yet to be 0:09:35.880 --> 0:09:38.439 able to support what this AI is going to look 0:09:38.480 --> 0:09:40.679 like in the next decade, So we do need from 0:09:40.679 --> 0:09:44.120 an infrastructure standpoint. Those are some areas that we'll look 0:09:44.120 --> 0:09:47.440 at as well as we see some broader weakness in 0:09:47.480 --> 0:09:48.079 this market. 0:09:48.800 --> 0:09:51.679 It's great to get a take that encapsulates a lot 0:09:51.720 --> 0:09:54.880 of tech, but also how to diversify outside and around it. 0:09:54.960 --> 0:09:59.040 Megan Honomon, we really appreciate it. Verdan's capital advisors stay well. Meanwhile, 0:09:59.040 --> 0:10:01.880 coming up, there's been a meme frenzy in Game Stops. 0:10:01.960 --> 0:10:05.400 Annual meeting actually kicks off today after it's postponed due 0:10:05.400 --> 0:10:09.240 to technical issues due to that meme demand last week. 0:10:09.760 --> 0:10:13.040 For details, that's coming up ahead. Meanwhile, look keep an 0:10:13.080 --> 0:10:15.840 eye on shares of TSMC. We look at what happens 0:10:15.960 --> 0:10:19.079 in terms of trading of ADRs, which actually there is 0:10:19.120 --> 0:10:22.000 a trade here. There is a long favored arbitrategy strategy 0:10:22.160 --> 0:10:26.000 where you buy TSMC over in Taipei and you short 0:10:26.080 --> 0:10:30.040 the usadrs American Depository of receipts listed here. But it's 0:10:30.080 --> 0:10:32.680 becoming painful because basically the premium of the US is 0:10:32.679 --> 0:10:35.440 pushing ever higher. Will we see it turn around? This 0:10:35.520 --> 0:10:48.560 has been big technology. Let's talk evs. Ferrari will release 0:10:48.679 --> 0:10:52.400 its first fully electric model next year, but it's open 0:10:52.440 --> 0:10:54.520 to a range of technologies. That's all according to the 0:10:54.520 --> 0:10:58.840 company's CEO. Now younger buyers favorite electric. For established customers, well, 0:10:58.840 --> 0:11:02.040 they're hesitant to give up this sportscar's trademark raw for 0:11:02.120 --> 0:11:05.640 Ari aims to offer traditional, hybrid and electric options to 0:11:05.640 --> 0:11:08.920 satisfy all of its customers. And let's talk a little 0:11:08.920 --> 0:11:11.640 bit more along the electric vehicle route, because Tesla has 0:11:11.640 --> 0:11:15.040 gotten approval to test this advanced driver assistance system over 0:11:15.080 --> 0:11:17.800 on Shanghai streets. Who most Croatrudel joins us now, and 0:11:17.880 --> 0:11:20.040 how important is this for FSD, how important it is 0:11:20.080 --> 0:11:23.120 this for the Tesla business models. 0:11:23.280 --> 0:11:26.320 It's an incremental step, and I do think that there's 0:11:26.440 --> 0:11:30.240 some potential for what Tesla markets is full self driving, 0:11:30.400 --> 0:11:34.559 to be a more meaningful contri contributor to their business 0:11:34.679 --> 0:11:37.280 in China, which they could really use at the moment. 0:11:37.840 --> 0:11:40.320 But what we don't know is just how long it's 0:11:40.320 --> 0:11:42.520 going to take them to be able to offer this 0:11:42.600 --> 0:11:46.960 more widely. Even this incremental step that we're reporting on 0:11:47.000 --> 0:11:50.080 today really just applies to the city of Shanghai and 0:11:51.080 --> 0:11:55.120 potentially also Hang Joe, another city, And so we're not 0:11:55.160 --> 0:11:57.959 necessarily seeing China take the same sort of hands off 0:11:58.000 --> 0:12:00.800 approach that we've seen in the US, where you know, 0:12:00.840 --> 0:12:04.720 they've been able to offer you know, FSD nationwide and 0:12:05.360 --> 0:12:08.240 it wasn't all that much trouble for them to make 0:12:08.280 --> 0:12:11.560 this available to consumers. On the other hand, in China, 0:12:11.559 --> 0:12:13.480 they're really going to have to sort of you know, 0:12:13.559 --> 0:12:17.480 in piecemeal fashion. Uh, you know, hit hit the sort 0:12:17.480 --> 0:12:19.800 of tick the boxes that they need to with regulators 0:12:19.840 --> 0:12:22.560 in order for consumers to be able to activate this. 0:12:22.840 --> 0:12:24.800 And it feels as though MOSC has realized that he 0:12:24.920 --> 0:12:28.880 needed these green lights coming from regulators, he made whistlestop 0:12:28.920 --> 0:12:33.600 tours to Beijing and actually therefore having to play alongside 0:12:33.640 --> 0:12:35.400 all the other Chinese ev makers. 0:12:36.520 --> 0:12:38.800 Yeah, that's right, And this has been you know, months 0:12:38.800 --> 0:12:41.880 in the making, even before that recent trip to Beijing 0:12:41.920 --> 0:12:44.760 that you mentioned. You know, this this is a case 0:12:44.800 --> 0:12:48.200 of Tesla having you know, offered the ability to buy 0:12:48.200 --> 0:12:50.880 this if you're a customer in China, but you know, 0:12:51.120 --> 0:12:53.960 not being able to actually activate it and you know, 0:12:54.120 --> 0:12:57.760 be deployed the the sort of ability to turn this on. 0:12:57.920 --> 0:13:00.199 And so, you know, I think there's still a lot 0:13:00.200 --> 0:13:03.280 of questions about you know, just how willing Tesla is 0:13:03.320 --> 0:13:05.800 to continue to charge as much as it has for 0:13:05.880 --> 0:13:09.320 this system, depending on you know, how much sort of 0:13:09.360 --> 0:13:12.240 capability it's able to offer, because this is all going 0:13:12.280 --> 0:13:15.000 to be up to the regulators, and again I think 0:13:15.000 --> 0:13:17.520 they're going to you know, the likelihood that they're going 0:13:17.559 --> 0:13:20.200 to be as permissive as the US has been. 0:13:20.640 --> 0:13:21.720 You know, where. 0:13:21.440 --> 0:13:24.360 Washington has taken this view that we don't want to 0:13:24.400 --> 0:13:25.120 stand in the way. 0:13:25.160 --> 0:13:26.800 We want to offer you know. 0:13:26.800 --> 0:13:29.960 Driver assistance systems, you know, plenty of leash to try 0:13:30.000 --> 0:13:33.439 and you know offer you know, the sort of safety 0:13:33.480 --> 0:13:36.480 benefits without you know, getting in the way. That that 0:13:36.600 --> 0:13:38.400 still remains very much an open question. 0:13:38.960 --> 0:13:41.440 Creat you down, We thank you so much all things Tesla, 0:13:41.480 --> 0:13:44.920 And now Tesla has a pretty loyal shareholder following so 0:13:45.040 --> 0:13:47.800 Tuesdays game Stop, so loyal that they're going to have 0:13:47.840 --> 0:13:51.120 to reschedule their annual meeting. It kicks off today twelve 0:13:51.200 --> 0:13:54.120 thirty pm local here in New York Eastern time. It 0:13:54.240 --> 0:13:56.839 was delayed last time because of technical issues going to 0:13:56.840 --> 0:13:59.839 break down why Bailey lipsheals and because too many of 0:13:59.880 --> 0:14:01.520 you what did it log one at the same. 0:14:01.400 --> 0:14:03.640 Time, right, too many people trying to get in computer 0:14:03.679 --> 0:14:06.280 share saying that they had to reschedule it from Thursday 0:14:06.320 --> 0:14:08.880 afternoon again to your point, to twelve thirty to day. 0:14:09.160 --> 0:14:13.240 We had to resort to twitch streams, YouTube streams, X streams, 0:14:13.360 --> 0:14:15.480 which was interesting because there were tens of thousands of 0:14:15.520 --> 0:14:18.400 people flocking to these channels that normally get maybe a 0:14:18.400 --> 0:14:21.000 half dozen people checking in on a daily basis, so 0:14:21.200 --> 0:14:22.680 people trying to find a way to stream and so 0:14:22.720 --> 0:14:25.000 fingers crossed it goes off without an egliches station. 0:14:25.000 --> 0:14:27.240 And why is there so much demand? May who are 0:14:27.240 --> 0:14:28.600 we going to be hearing from? What are we going 0:14:28.640 --> 0:14:29.080 to be knowing? 0:14:29.680 --> 0:14:30.360 No one knows. 0:14:30.440 --> 0:14:33.160 So when you look at last year's AGM when Ryan Cohen, 0:14:33.200 --> 0:14:35.440 it was the first time as chairman leading this call, 0:14:35.560 --> 0:14:38.040 he spoke for about ninety seconds the entire call. 0:14:37.920 --> 0:14:39.680 Ninety second ninety seconds, okay. 0:14:39.680 --> 0:14:43.120 Entire The entire call lasted about fifteen from start to finish, 0:14:43.200 --> 0:14:44.840 So no one knows what's going to happen. There's so 0:14:44.920 --> 0:14:48.160 much interest in what whether Roaring Kitty Keith Gill could 0:14:48.400 --> 0:14:50.680 appear or be mentioned in any way, shape or form. 0:14:50.760 --> 0:14:54.600 The company did raise about three billion dollars through sales 0:14:54.640 --> 0:14:57.080 of new shares over the last two months, so will 0:14:57.120 --> 0:14:59.440 they address the cash hall that they have now about 0:14:59.440 --> 0:15:00.920 four billion doll the balance sheet? 0:15:01.000 --> 0:15:03.400 Well, they addressed the strategy. No one really knows. 0:15:03.200 --> 0:15:04.920 And I think that's part of the reason that people 0:15:04.960 --> 0:15:07.360 have to tune in because if Ryan Cohan appears, how 0:15:07.400 --> 0:15:09.200 long does he speak? Does someone else make a guest 0:15:09.240 --> 0:15:12.480 appearance or is it strictly business from some of the lawyers. 0:15:12.560 --> 0:15:16.320 Now having tuned into Keith Gills's own YouTube channel the 0:15:16.360 --> 0:15:18.560 other week, it doesn't seem like he knows much about 0:15:18.560 --> 0:15:21.560 the strategy of game stuff either, but he does seem 0:15:21.600 --> 0:15:24.800 to be moving around his holdings. He's changing his options 0:15:24.800 --> 0:15:28.560 into actual share share ownership. That seemed to be pushing 0:15:28.600 --> 0:15:29.360 up the stock recently. 0:15:29.440 --> 0:15:30.800 Yeah, there was some excitement around that. 0:15:30.880 --> 0:15:32.440 So we saw about a week and a half ago 0:15:32.560 --> 0:15:35.520 he posted a screenshot on Reddit five million share stake, 0:15:35.520 --> 0:15:37.440 one hundred and twenty thousand call options. A couple of 0:15:37.480 --> 0:15:40.600 days later turned out he exited that call positions and 0:15:40.640 --> 0:15:43.360 reported north of nine million shares. So that makes him 0:15:43.440 --> 0:15:45.400 a top four holder if we take it at face 0:15:45.480 --> 0:15:48.080 value and is on paper worth The last time you 0:15:48.120 --> 0:15:50.680 posted about two hundred and sixty two million dollars, So 0:15:50.960 --> 0:15:52.160 where did he get the cash from? 0:15:52.280 --> 0:15:53.040 How rich is he? 0:15:53.320 --> 0:15:55.480 A lot of questions and uncertainty around that that he 0:15:55.520 --> 0:15:58.240 never addressed on his stream, but nonetheless, again if you 0:15:58.280 --> 0:16:00.000 take it at face value, what he posted on Reddit, 0:16:00.080 --> 0:16:03.040 top four holder from a retail shareholder who back in 0:16:03.040 --> 0:16:06.400 twenty twenty was preaching game stop, the Ryan Cohen vision 0:16:06.640 --> 0:16:07.520 and short squeeze. 0:16:07.560 --> 0:16:09.400 And that's just focused for a minute on Ron Cohen, 0:16:09.600 --> 0:16:12.760 because if you haven't been a complete GameStop fanatic of 0:16:12.800 --> 0:16:15.000 the story or in teath the stock, why do we 0:16:15.000 --> 0:16:15.560 care so much. 0:16:15.440 --> 0:16:18.400 About this individual co founder of Chewy So a lot 0:16:18.400 --> 0:16:20.160 of people bet against that, said they would be pets 0:16:20.160 --> 0:16:22.280 dot Com two point zero very successful sale to the 0:16:22.280 --> 0:16:25.000 PetSmart ultimately went public when he was no longer associated 0:16:25.040 --> 0:16:28.040 with the company, made a pretty nice fortune from that. 0:16:28.680 --> 0:16:31.280 He took an activist stake back in twenty twenty in 0:16:31.400 --> 0:16:34.480 Game Stop, then pushed and really helped trigger alongside Keith 0:16:34.520 --> 0:16:37.440 Gill in early twenty twenty one, getting seats on the board, 0:16:37.480 --> 0:16:41.120 pushing for changes, ultimately ousting pretty much the entire management team, 0:16:41.280 --> 0:16:44.080 and now is the chairman, CEO, and president of the company. 0:16:44.240 --> 0:16:46.960 And really the whole belief in Game. 0:16:46.800 --> 0:16:50.280 Stop with Keith Gill's thesis, is that Ryan Cohen will 0:16:50.320 --> 0:16:52.000 be able to turn the company from a brick and 0:16:52.040 --> 0:16:55.680 mortar company that has shown slowing sales has slowan has 0:16:55.720 --> 0:16:57.880 shown a need to close some of those stores and 0:16:57.920 --> 0:16:59.320 completely revamp the business. 0:16:59.400 --> 0:17:01.240 The question is what does that look like? How do 0:17:01.360 --> 0:17:01.960 we get there? 0:17:02.120 --> 0:17:04.119 No one really knows, but that's the whole kind of 0:17:04.160 --> 0:17:08.200 group mentality behind the GameStop bulls, the retail investors who 0:17:08.200 --> 0:17:09.040 really like the stock. 0:17:09.440 --> 0:17:10.800 Is that Ryan Cohen knows. 0:17:10.960 --> 0:17:12.680 He won't tell us, but at some point this is 0:17:12.680 --> 0:17:14.359 going to end up working out. And that's really been 0:17:14.520 --> 0:17:17.440 why we've seen such a wild ride over the last 0:17:17.440 --> 0:17:19.439 three years. And you have to kind of at some 0:17:19.480 --> 0:17:21.600 point of your hat though, because ran Cohen and RC 0:17:21.680 --> 0:17:24.159 Adventures owns about eight and a half percent of the company, 0:17:24.200 --> 0:17:26.560 so he has put his money where his mouth is, and. 0:17:26.800 --> 0:17:30.000 He's put some money in the balance sheet of GameStop too, 0:17:30.040 --> 0:17:33.240 And that's meant Citron, for example, has just exited. It 0:17:33.320 --> 0:17:36.199 short always great to get bad upshots on all of 0:17:36.280 --> 0:17:46.920 the backstory. Google, which has long been a pioneer in 0:17:47.000 --> 0:17:49.879 new technologies like AI, but it's just what's rivals like 0:17:49.920 --> 0:17:52.600 open AI harness its research it seems to leap frog 0:17:52.640 --> 0:17:55.439 it in the world of generative artificial intelligence. So the 0:17:55.480 --> 0:17:59.000 company is reorganized. Originally, Google had two separate AI laps. 0:17:59.080 --> 0:18:02.440 Google Brain researchers kind of pursued passion projects with some 0:18:02.560 --> 0:18:06.679 loose oversight. Of course, the acquired deep Mind, co founded 0:18:06.680 --> 0:18:09.560 by AI Lunar and Dems Hasabis, who had this to 0:18:09.600 --> 0:18:11.680 say about the future of AI development. 0:18:12.600 --> 0:18:16.000 I think AI is overhyped in the short term and 0:18:16.119 --> 0:18:19.240 probably underestimated over the long term, like the what it's 0:18:19.240 --> 0:18:21.359 going to bring, And I think that's probably true of 0:18:21.400 --> 0:18:24.480 a lot of breakthrough technologies. So I think we're seeing, 0:18:24.520 --> 0:18:26.680 because of the popularity of AI now in the last 0:18:26.720 --> 0:18:29.359 couple of years, lots of people trying to get into 0:18:29.359 --> 0:18:32.400 this space who maybe haven't thought about this as long 0:18:32.480 --> 0:18:34.800 as people like us who've been in it for decades. 0:18:35.680 --> 0:18:37.240 And I think we're going to see a sort of 0:18:37.280 --> 0:18:38.880 rationalization process happening. 0:18:39.320 --> 0:18:42.720 Indeed, that rationalization process is upon us with a combination 0:18:42.800 --> 0:18:45.200 of Google's two AI labs in twenty twenty three into 0:18:45.200 --> 0:18:48.480 a super unit called Google deep Mind. Look. It was 0:18:48.520 --> 0:18:51.120 to commercialize products and keep pace some competitors, but several 0:18:51.119 --> 0:18:54.560 employees are saying this move has been undermining the company's 0:18:54.680 --> 0:18:58.160 edge in foundational research. It's a great story written by 0:18:58.160 --> 0:19:01.000 Mark Bergen. We want more on this because is there 0:19:01.000 --> 0:19:05.600 attention internally after these and one year down of an amalgamation. 0:19:06.920 --> 0:19:08.720 Yeah, I mean to be clear, it's Google. There's always 0:19:08.760 --> 0:19:11.720 intentioned internally, it's a it's a big messy company. I 0:19:12.000 --> 0:19:14.240 think what our story does it? I think I'm kind 0:19:14.240 --> 0:19:17.159 of unfolds here. Is that like part of it is geographical, right. 0:19:17.200 --> 0:19:21.359 Deep Minds historically has been London based that Google. Google 0:19:21.480 --> 0:19:23.719 is out of its headquarters in Mountain View. You've had 0:19:23.720 --> 0:19:26.840 these sort of competing labs that in some ways operated 0:19:26.920 --> 0:19:27.560 very differently. 0:19:27.800 --> 0:19:29.120 Deep mind has. 0:19:29.119 --> 0:19:31.760 For the past decade basically an incredibly well funded research 0:19:31.800 --> 0:19:35.800 operation and doing some cutting edge AI, probably the world's 0:19:36.119 --> 0:19:39.199 lead most cutting edge AI is not always connected to 0:19:39.560 --> 0:19:43.640 Google services. Google profits it's commercial center. Now they're they're 0:19:43.640 --> 0:19:46.520 attempting to, i think, swing much more in a focus 0:19:46.560 --> 0:19:51.359 on products, to be Gemini being the flagship one of 0:19:51.400 --> 0:19:53.960 competing with open AI's model. I think there's a lot 0:19:53.960 --> 0:19:56.240 of there's there's still a lot of bumps and warts 0:19:56.240 --> 0:19:59.200 and all in that that merger, and there's always a 0:19:59.200 --> 0:20:01.800 conflict between how much is sort of doing these sort 0:20:01.840 --> 0:20:04.439 of core products versus more exploratory research. 0:20:04.960 --> 0:20:09.560 Talking of bumps and warts and all. The commercialization hasn't 0:20:09.560 --> 0:20:12.480 gone that smoothly, and that is kind of the problem 0:20:12.520 --> 0:20:15.680 of being such a big company where they can't act 0:20:15.720 --> 0:20:16.879 like a startup all the time. 0:20:19.520 --> 0:20:22.040 Yeah, I think so, Although you know, you'd think that it. 0:20:22.200 --> 0:20:25.280 Clearly Google is under a much more scrutiny around for 0:20:25.720 --> 0:20:27.240 the kind of mess ups that they have, right the 0:20:27.480 --> 0:20:31.520 Gemini ones, which we've talked about, And I think that 0:20:31.520 --> 0:20:35.600 that's totally understandable given just how big of their services are, 0:20:35.680 --> 0:20:38.440 right like how many people are are using Google Search 0:20:38.440 --> 0:20:42.280 on a daily basis, and how much responsibility that has 0:20:42.320 --> 0:20:45.399 not just for their their bottom line, but obviously like 0:20:45.440 --> 0:20:50.080 the regulatory scrutiny they're under, and internally, I think that those, 0:20:50.359 --> 0:20:52.760 you know, those screw ups that they've had recently, I 0:20:52.800 --> 0:20:55.080 think there's gonna be some interesting tension about how what 0:20:55.240 --> 0:20:57.800 changes they make when they when they launched, They clearly 0:20:57.840 --> 0:21:01.360 have been scrutinized and criticized for a long time, particularly 0:21:01.400 --> 0:21:03.640 from internally, from moving too slowly, and I think open 0:21:03.680 --> 0:21:06.520 Ai and Microsoft has really push Google to move pretty fast, 0:21:06.520 --> 0:21:09.360 and you could say that some of these pretty public 0:21:09.920 --> 0:21:12.399 snapfoos they've had with Gemini might be a consequence of that. 0:21:13.240 --> 0:21:17.400 Demis of course seeing Alpha fold and medical applications real 0:21:17.440 --> 0:21:19.919 business model, but we see how Gemini continues to evolved 0:21:19.920 --> 0:21:22.280 as well as a great story, go read it. Mart 0:21:22.280 --> 0:21:25.000 Berg and a deep dive on goings on at the 0:21:25.000 --> 0:21:27.280 top when it comes to AI labs becoming one over 0:21:27.320 --> 0:21:36.920 at Google. Welcome back to Rerumot technology. I'm Caroline Hide 0:21:36.920 --> 0:21:38.679 in New York. Quick check on these markets for you, 0:21:39.240 --> 0:21:41.600 and we're currently up four tens percent on the bigger 0:21:41.600 --> 0:21:45.119 benchmarin the NASA one hundred managing to shake off some 0:21:45.160 --> 0:21:47.960 of the anxiety over in European trading. In fact, the 0:21:48.000 --> 0:21:51.480 CAC forty rallies nine tens percent. We see Marine Lapenn, 0:21:51.480 --> 0:21:54.119 of course, the right wing contender trying to take the 0:21:54.160 --> 0:21:57.240 prime ministerial role, saying, look, she will abide and respect 0:21:57.320 --> 0:22:00.440 institutions and indeed work with President Macron. Get a little 0:22:00.440 --> 0:22:02.760 bit of a bounce back, but still the political anxiety 0:22:02.800 --> 0:22:05.160 is there. Bitcoin off by almost two percent. Look, we're 0:22:05.160 --> 0:22:07.040 only at sixty five thousand now, so we've seen some 0:22:07.040 --> 0:22:10.240 profit taking in crypto. More broadly, move on, have a 0:22:10.280 --> 0:22:12.479 look at what some of the individual movers and shakers 0:22:12.520 --> 0:22:14.919 are because we are seeing some individual corporate moves up 0:22:14.960 --> 0:22:18.600 five percent for Autodesk. Why activist investor Starboard value is 0:22:18.600 --> 0:22:21.480 built up a stake in Autodesk, a software company more 0:22:21.480 --> 0:22:23.320 than five hundred million dollars. They want to push for 0:22:23.400 --> 0:22:26.480 changes investors like that Dell Technologies, well, the CEO is 0:22:27.240 --> 0:22:29.480 selling out some more than three hundred million dollars worth 0:22:29.520 --> 0:22:31.960 of the stop, but that does not matter in terms 0:22:32.000 --> 0:22:34.399 of the selling pressure. We're currently up more than six 0:22:34.440 --> 0:22:37.080 point six percent. That seems to be more on analysts 0:22:37.080 --> 0:22:39.040 saying this is still a stock that you should be buying. 0:22:39.119 --> 0:22:40.760 I think it was JP Morgan that have been speaking 0:22:40.760 --> 0:22:43.800 with executives. Indeed it was Morgan Stanley reiterating their topic 0:22:44.119 --> 0:22:47.000 after some management meetings. Meta off by some seven tenths 0:22:47.040 --> 0:22:49.159 of a percent lay, along with a number of social 0:22:49.200 --> 0:22:52.440 media companies really being forced to think about how much 0:22:52.520 --> 0:22:56.400 they look at AI chatbots, but more broadly, how much 0:22:56.440 --> 0:23:00.359 they also look at focusing on the Surgeon General calls 0:23:00.400 --> 0:23:03.360 for some warnings of addiction. Let's move on to look 0:23:03.359 --> 0:23:05.119 at what's happening with Adobe, because we've just had some 0:23:05.160 --> 0:23:07.480 breaking news. We're off by more than three percent, having 0:23:07.520 --> 0:23:10.720 been training higher in a while, down earlier in hours, 0:23:10.720 --> 0:23:13.240 but still off by three point three. The FTC is 0:23:13.280 --> 0:23:16.480 taking action against software maker and two of its executives, 0:23:16.480 --> 0:23:20.760 that's Meninda Sweny and David Wodwani, apparently for deceiving consumers 0:23:20.800 --> 0:23:23.840 by hiding the early termination fees for its most popular 0:23:23.840 --> 0:23:27.320 subscription plan and making it basically difficult to cancel your subscription. 0:23:27.720 --> 0:23:31.520 The FDC just releasing that action. We remain under pressure 0:23:31.520 --> 0:23:34.000 on Adobe after some stellar results last week that pushed 0:23:34.000 --> 0:23:37.320 the stock up more than ten percent. But let's turn 0:23:37.359 --> 0:23:40.240 to another corporate story right now, because we've all been 0:23:40.280 --> 0:23:43.840 thinking about how AI is affecting Microsoft. That seemed to 0:23:43.880 --> 0:23:46.200 be well ahead of Apple, but now not so much 0:23:46.240 --> 0:23:49.240 the case. Ever since the iPhone maker unveiled its own 0:23:49.320 --> 0:23:52.119 AI in CHATCHYBT integrations at the beginning of last week 0:23:52.320 --> 0:23:54.359 for the iPhone, for the Mac, suddenly it feels like 0:23:54.440 --> 0:23:57.440 Microsoft's lead isn't so large anymore. We want to break 0:23:57.440 --> 0:23:59.800 it down when Bluemog's Austin car who's written for the 0:24:00.200 --> 0:24:04.560 Daily newsletter today, all about your own personal feelings of 0:24:04.600 --> 0:24:08.240 whether Microsoft has kind of slipped here. What's your takeaway 0:24:08.240 --> 0:24:11.320 from Apple? Why do you think they've got it right? So? 0:24:11.400 --> 0:24:14.240 I'm an iPhone user and I'm also a Windows PC user. 0:24:14.760 --> 0:24:17.159 I've been sort of using the AI that's come with 0:24:17.200 --> 0:24:20.119 Windows for a little over a year now. Microsoft had 0:24:20.119 --> 0:24:24.160 this big lead, but then Apple launched or announced all 0:24:24.160 --> 0:24:27.120 these AI features last week, from you know, easier ways 0:24:27.160 --> 0:24:30.840 to search for your photos, to making sort of custom 0:24:30.880 --> 0:24:35.600 emojis with AI in your social interactions, interacting with Siri, 0:24:36.080 --> 0:24:38.879 and suddenly I got that same excitement I had with 0:24:39.000 --> 0:24:41.360 Microsoft about a year ago, but which I haven't really 0:24:41.400 --> 0:24:43.800 had since then. These are all new products that are 0:24:43.840 --> 0:24:46.080 coming to the iPhone. They're going to integrate very well 0:24:46.160 --> 0:24:49.600 with my day to day use for the iPhone, iPad, MacBook, 0:24:49.640 --> 0:24:53.000 and so forth. And it's really interesting that, yeah, Apple 0:24:53.080 --> 0:24:55.080 was so far behind, seemingly just you know, a week 0:24:55.160 --> 0:24:57.440 or two ago, and suddenly a lot of consumers are 0:24:57.480 --> 0:25:01.160 really excited about these products they're launching, despite their super 0:25:01.680 --> 0:25:06.359 comparative simplicity with what Microsoft is launching by comparison. 0:25:06.200 --> 0:25:09.600 Investors are pretty excited too, Austin. We're a new record highs. 0:25:09.640 --> 0:25:13.280 We're eclipsing and back to the most valuable company on 0:25:13.320 --> 0:25:16.840 the indices. What is it, more broadly that they're managing 0:25:16.880 --> 0:25:19.119 to integrate. Is it just that they're more consumer focused 0:25:19.400 --> 0:25:20.879 company than Microsoft? 0:25:20.960 --> 0:25:21.040 Is? 0:25:22.480 --> 0:25:22.679 You know? 0:25:22.760 --> 0:25:24.280 I think one of the up sides that they have 0:25:24.440 --> 0:25:26.800 is a lot of these devices and services are already 0:25:26.800 --> 0:25:29.359 in people's hands, so they're sort of sprinkling AI on 0:25:29.440 --> 0:25:31.920 top of I message in case I want to send 0:25:31.920 --> 0:25:34.440 a custom meme. We don't have to download a new 0:25:34.480 --> 0:25:36.680 AI app. You already have series. So it just makes 0:25:36.680 --> 0:25:39.760 them a lot smarter. By comparison, Microsoft has to do 0:25:39.760 --> 0:25:41.000 a lot of the laid work. We don't have a 0:25:41.000 --> 0:25:44.400 Windows phone. Yes you have Windows PCs or Microsoft Word 0:25:44.400 --> 0:25:46.959 and Excel, but it doesn't dominate your day to day 0:25:47.000 --> 0:25:49.120 life at least from a consumer standpoint the same way 0:25:49.119 --> 0:25:52.399 that Apple does. So that's really the upside that a 0:25:52.440 --> 0:25:55.520 company like Apple has. You were just talking earlier about Google. 0:25:55.960 --> 0:25:57.520 They run into a lot of these issues all the 0:25:57.520 --> 0:26:00.520 time because people expect it their Gemini product to be 0:26:00.520 --> 0:26:02.920 as good as Google Search, and it's just not easy. 0:26:03.480 --> 0:26:05.440 Whereas Apple is coming in and saying, we're just going 0:26:05.480 --> 0:26:08.200 to do a lot of simple things and do them 0:26:08.320 --> 0:26:10.040 very very well and add them to the products that 0:26:10.040 --> 0:26:12.840 you're already used to. So they're not reinventing chat GPT, 0:26:12.960 --> 0:26:16.080 they're not trying to become a chat GPT competitor. In fact, 0:26:16.080 --> 0:26:18.720 they're integrating with chat GPT and anything that they can too. 0:26:18.720 --> 0:26:21.520 They'll just boot you over to chat GPT and integration 0:26:21.640 --> 0:26:24.320 that I'm sure Microsoft is a little bit jealous of 0:26:24.400 --> 0:26:27.320 considering they invested about thirteen million dollars into open Ai. 0:26:28.359 --> 0:26:31.240 True, Austin Carr has a great read. Thanks so much 0:26:31.280 --> 0:26:33.919 for coming on and giving us the feels around Apple. Meanwhile, 0:26:33.960 --> 0:26:36.679 let's stick with AI because it would seem like we 0:26:36.800 --> 0:26:39.600 vented kind of the AI startup. M and A. Season's 0:26:39.720 --> 0:26:42.840 growing number of artificial intelligence startup founders. Basically they're looking 0:26:42.840 --> 0:26:44.879 to sell their companies. Why because it's so expensive for 0:26:44.960 --> 0:26:47.879 the compute power. CEO of Hugging Face is with us, 0:26:47.880 --> 0:26:50.760 which is just acquired a small company called a Gilla 0:26:50.920 --> 0:26:54.720 of ten million dollars forth acquisition to date, and he 0:26:54.920 --> 0:26:56.800 kind of told us that this might be occurring in 0:26:56.840 --> 0:26:58.920 the market. Cland along joins us some more. CEO of 0:26:59.000 --> 0:27:01.440 Hugging Face and what was it but a month or 0:27:01.520 --> 0:27:04.000 so ago they were sat in San Francisco and You're like, 0:27:04.200 --> 0:27:06.439 this is happening. This M and A is real, And 0:27:06.480 --> 0:27:09.040 I'm getting a lot of calls offering to sell the 0:27:09.119 --> 0:27:11.280 startup to me. But you went out and found this 0:27:11.400 --> 0:27:12.000 on yourself. 0:27:13.640 --> 0:27:15.520 Yes, And I think it's just just the beginning. I 0:27:15.520 --> 0:27:18.040 think we're going to start to see much many more 0:27:18.080 --> 0:27:21.800 acquisitions in the next the next few months. This acquisition 0:27:21.920 --> 0:27:26.800 is a good example. Aguila is a fantastic team based 0:27:26.800 --> 0:27:31.919 out of Spain working on a tremendously important topic, data 0:27:31.960 --> 0:27:37.040 sets and data for AI. Their name Aguila means clay 0:27:37.320 --> 0:27:40.080 in Spanish. That's a good image for what data sets 0:27:40.080 --> 0:27:43.320 and data are in AI. They're kind of like the foundation, 0:27:44.480 --> 0:27:50.000 the soil that allows machine learning and AI to grow. 0:27:50.760 --> 0:27:54.160 So we're super excited about about this, and I feel 0:27:54.160 --> 0:27:56.080 like this is just the beginning for a man a 0:27:56.240 --> 0:27:59.080 for hurging Facebook, for the field of AI in general too. 0:27:59.400 --> 0:28:02.600 Okay, so when you look at a ten million dollar deal, 0:28:02.640 --> 0:28:04.960 but I think the team's going to remain intact and 0:28:04.960 --> 0:28:07.600 they're almost going to continue to operate as they have been. 0:28:08.080 --> 0:28:09.919 How else would you want M and A to happen 0:28:10.040 --> 0:28:13.600 for hugging face? Will you do such sort of standalone deals? 0:28:13.640 --> 0:28:14.439 Will they get bigger? 0:28:16.840 --> 0:28:17.320 Maybe? 0:28:18.040 --> 0:28:23.040 I think it all depends on the talents, on the opportunities. 0:28:24.359 --> 0:28:26.760 As I was sharing with one of your other reporters, 0:28:27.320 --> 0:28:31.159 the volume of acquisition opportunities as really sky located in 0:28:31.200 --> 0:28:35.760 the past few months. Just Pacelona, I realized that we 0:28:36.200 --> 0:28:41.440 receiving over ten acquisition opportunities a week these days to 0:28:41.520 --> 0:28:45.000 its company. 0:28:42.800 --> 0:28:46.080 Emails, how are you getting at emails? 0:28:46.160 --> 0:28:51.400 Yeah, emails mostly or connecting with me on social social 0:28:51.480 --> 0:28:56.320 media definitely increased. So it's really interesting to see. I 0:28:56.320 --> 0:29:01.000 think there's this natural tendency of like console nutrition in 0:29:01.720 --> 0:29:05.680 AI and some companies like Hugging Face or others becoming 0:29:05.720 --> 0:29:10.160 some sort of magnets, right because of the visibility that 0:29:10.200 --> 0:29:13.000 we have, the talent that we have to compute that 0:29:13.440 --> 0:29:16.880 we have. Uh and for all these startups that have 0:29:17.120 --> 0:29:21.640 good teams that have maybe early traction but might not 0:29:22.280 --> 0:29:27.440 attract the level of VC funding that is required for AI, Yeah, 0:29:27.800 --> 0:29:30.000 there's going to get a lot of opportunities for them 0:29:30.040 --> 0:29:33.920 to join other teams, which is which is an interesting trend. 0:29:33.760 --> 0:29:37.160 Because you've raised hundreds of millions and there's Google, Amazon 0:29:37.200 --> 0:29:39.800 and Video all the all the whost who of corporate 0:29:39.880 --> 0:29:42.160 VC is invested in your previous round, so you've got 0:29:42.160 --> 0:29:44.760 the cash to be able to make these acquisitions. Got 0:29:44.800 --> 0:29:47.800 the compute power. Is there any theme of where these 0:29:47.840 --> 0:29:50.280 companies that are currently wanted to sell themselves are coming from? 0:29:50.360 --> 0:29:53.280 Is it geographical or is it within the statler like 0:29:53.360 --> 0:29:55.760 where is what are the problems they're trying to solve. 0:29:57.520 --> 0:29:59.280 So I think a lot of it is a power 0:29:59.360 --> 0:30:04.920 lel to the concentration of VC bets in a way. 0:30:05.680 --> 0:30:09.280 I think right now vices are taking heavy, heavy bets 0:30:09.560 --> 0:30:13.440 on a couple of like very hot topics like for example, 0:30:14.080 --> 0:30:17.800 large language models. Right, you've seen maybe different raising of 0:30:18.280 --> 0:30:21.520 Mistrial out of France a coup a couple of days ago. 0:30:22.240 --> 0:30:26.479 And so when the startups are working on topics that 0:30:27.120 --> 0:30:31.480 are a little bit less hype for VC, like for 0:30:31.520 --> 0:30:37.200 example here it's data sets, it's kind of like a 0:30:37.240 --> 0:30:41.760 different different picture, it's a different life. It's like a 0:30:41.840 --> 0:30:47.680 you know, I won't quote like quoting Rocky the world 0:30:47.760 --> 0:30:51.160 and all like sunshine and rainbows for AI startups that 0:30:51.200 --> 0:30:55.880 are working on like less sexy AI topics. Yeah, and 0:30:55.960 --> 0:30:58.920 so we see a lot of opportunities in there, and 0:30:59.000 --> 0:31:03.000 it's it's super exciting because for example here for Aguilla 0:31:03.280 --> 0:31:06.800 working on data sets, on data which in my opinion 0:31:06.920 --> 0:31:10.040 now is becoming like the bottleleck or like the most 0:31:10.080 --> 0:31:15.440 important So pick for EI, right, because better data allows 0:31:15.480 --> 0:31:20.280 companies to take three base for example, and then find 0:31:20.440 --> 0:31:23.600 units and get better results for their use case than before. 0:31:24.160 --> 0:31:26.400 So all these other two things that another that hype 0:31:26.520 --> 0:31:27.400 are super interesting. 0:31:27.840 --> 0:31:30.160 I have to leave it there. I climbed along making 0:31:30.320 --> 0:31:32.360 the un sexy sexy for your business. We appreciate it. 0:31:32.360 --> 0:31:34.600 See you hugging face. Coming up, we're going to be 0:31:34.640 --> 0:31:36.280 talking about perhaps a little bit of M and A 0:31:36.400 --> 0:31:40.680 where they value lise VC Spotlight FPV Ventures managing partner 0:31:40.680 --> 0:31:43.240 Wesley Chan joins us. Let's some quick look what's happening 0:31:43.280 --> 0:31:45.120 in the public markets too, though, because the FDC is 0:31:45.120 --> 0:31:48.480 taking action against Adobe and executives for hiding fees, says 0:31:48.560 --> 0:31:52.240 the Federal Trade Commission, preventing consumers from easily canceling software 0:31:52.240 --> 0:31:54.880 subscriptions down by more than three percent. They were down 0:31:55.120 --> 0:32:05.840 prior to this announcement. This will bring me technology time 0:32:05.920 --> 0:32:08.240 now for talking tech. First up, the US Surgeon General. 0:32:08.440 --> 0:32:11.520 It's calling for warning labels on social media sites similar 0:32:11.520 --> 0:32:14.160 to those that you'll find on a cigarette card. Top 0:32:14.200 --> 0:32:17.120 health officials are calling on sites such as TikTok Instagram 0:32:17.120 --> 0:32:20.240 to include a warning to parents and it could harm 0:32:20.240 --> 0:32:23.120 the mental health of children. Legislation on the labels have 0:32:23.200 --> 0:32:27.160 yet to be introduced. Plus, Indian fintech firm PATM is 0:32:27.240 --> 0:32:29.360 in talks to sell its movie and ticketing business to 0:32:29.440 --> 0:32:32.160 Zamato as it looks to unload long court assets, and 0:32:32.200 --> 0:32:35.600 the discussions between PATM and online food delivery firms Tomato 0:32:35.720 --> 0:32:39.160 are in a band stages, though other suitors have voiced interest, 0:32:39.800 --> 0:32:42.280 and the US Supreme Court has agreed to review a 0:32:42.320 --> 0:32:45.760 case over in Video's crypto mining revenue, and Video is 0:32:45.760 --> 0:32:48.680 seeking to stop an investor suit accusing the company being 0:32:48.680 --> 0:32:51.600 deceptive about its crypto mining revenue before a twenty eighteen 0:32:51.600 --> 0:32:54.640 market downturn that the justices say they will hear in 0:32:54.720 --> 0:32:58.760 Videos contentions that the company lacks enough a simplicity to 0:32:58.840 --> 0:33:03.840 go forward now time for VC Spotlight. Joining us today 0:33:03.920 --> 0:33:07.400 is Wesley Chan FPV Ventures, co founder, a managing partner. 0:33:07.680 --> 0:33:09.920 And it's interesting that we talk about Nvidio just for 0:33:10.320 --> 0:33:13.440 our segment and you're kind of the anti AI voice 0:33:13.480 --> 0:33:15.360 in the room at the moment. Why what are you 0:33:15.840 --> 0:33:17.040 feeling around the hype? 0:33:17.240 --> 0:33:19.680 I think there's too many people right. I love in 0:33:19.760 --> 0:33:22.200 contra and investing. When I invested in Canva on the 0:33:22.240 --> 0:33:24.920 Series A, there's one hundred and eleven investors that told 0:33:24.920 --> 0:33:27.360 them no, right, you're too far away. Or in Australia, 0:33:27.440 --> 0:33:29.320 we don't get how this is going to work with 0:33:29.360 --> 0:33:31.720 Adobe and Microsoft having these amazing tools in the market, 0:33:31.720 --> 0:33:33.480 we all people trained on them, and all of a sudden, 0:33:33.520 --> 0:33:35.920 Canva is now being used by everybody under thirty five 0:33:35.960 --> 0:33:38.640 with over two billion of revenue. So I always look 0:33:38.680 --> 0:33:40.680 at it as what's the contrarian bet that we can 0:33:40.720 --> 0:33:43.160 be making. And if everybody's rushing into the fire or 0:33:43.400 --> 0:33:45.320 rushing away from the fire, what fire should we be 0:33:45.360 --> 0:33:45.880 running into. 0:33:45.960 --> 0:33:47.520 It's kind of like going to. 0:33:48.080 --> 0:33:50.400 Europe in the middle of the summer when everybody's off 0:33:50.440 --> 0:33:52.880 in school, you get crowd, you overpay. Every hotel room 0:33:52.960 --> 0:33:54.760 is a thousand euros a night. You want to be 0:33:54.800 --> 0:33:56.480 going in the middle of winter when it's empty and 0:33:56.480 --> 0:33:58.640 you can get the entire museum to yourself. 0:33:58.680 --> 0:33:59.560 So that's what we look for. 0:33:59.600 --> 0:34:01.840 We're not so much anti AI as we are conturring 0:34:01.880 --> 0:34:04.160 and we want to go bet and place the place 0:34:04.240 --> 0:34:05.600 the investment when the timing is right. 0:34:05.800 --> 0:34:08.720 Okay, So where is the timing rightful right now? Where 0:34:08.760 --> 0:34:13.160 is the original check into Canva luring laying right now? 0:34:13.320 --> 0:34:15.640 Well, some of the interesting bets are in areas where 0:34:15.640 --> 0:34:18.799 nobody thinks AI can can can make a difference, right. 0:34:18.880 --> 0:34:20.680 So one area that we're spending a lot of time 0:34:20.840 --> 0:34:23.239 is in drug development, in drug discovery. 0:34:23.920 --> 0:34:25.759 So I hear a lot of people thinking AI is 0:34:25.760 --> 0:34:26.600 going to change structures. 0:34:26.920 --> 0:34:28.600 Well, they're not making the bets yet, right, Like, if 0:34:28.600 --> 0:34:30.919 you look at companies in biotech right now, it's still 0:34:31.000 --> 0:34:33.360 kind of half dead, right, Like, there are investors investing 0:34:33.360 --> 0:34:35.759 in the lms, they're investing in the data management, some 0:34:35.800 --> 0:34:37.960 of them are investing into drug discovery, but not much. 0:34:38.040 --> 0:34:39.560 Right We just did a big investment in a company 0:34:39.600 --> 0:34:41.560 called in Data. They announced a fifty five million dollars 0:34:41.640 --> 0:34:44.640 round and they use AI to train on mass spectrometry data. 0:34:44.640 --> 0:34:46.560 It's the same AI that they're training that you're finding 0:34:46.600 --> 0:34:48.880 on chat GVT, but they're training it on models and 0:34:48.880 --> 0:34:52.600 they're training it on data from mass spectrometries like the 0:34:52.640 --> 0:34:54.440 machines that you see on CSI, and they're trying to 0:34:54.520 --> 0:34:57.640 use that to discover new molecules that can cure cancer, 0:34:57.840 --> 0:35:00.880 that can like cure major diseases in natural compounds. And 0:35:00.920 --> 0:35:03.279 they're already found quite a few, and hence Microsoft has 0:35:03.320 --> 0:35:05.799 made a big investment into them. Again, it was not 0:35:05.880 --> 0:35:08.120 obvious when we made the investment. It was concern. Everybody 0:35:08.160 --> 0:35:09.880 sat there and said, well, chat GPT's great for all 0:35:09.920 --> 0:35:12.279 this tech stuff and for writing essays and for helping 0:35:12.320 --> 0:35:15.719 high school students sort of create and re research, and 0:35:15.760 --> 0:35:17.320 all of a sudden, we have a company that's figured 0:35:17.320 --> 0:35:19.560 out how to discover new molecules. 0:35:19.160 --> 0:35:20.719 Using some of the same AI tools. 0:35:20.520 --> 0:35:22.840 That's not obvious. A lot of people thought that was 0:35:22.880 --> 0:35:24.200 crazy when we made the bet. 0:35:24.440 --> 0:35:26.920 You're making very early bets, and I'm interested as to 0:35:27.000 --> 0:35:29.560 how long you ride with the bet, how much you 0:35:29.600 --> 0:35:31.680 can pay to play throughout the series that we get 0:35:31.719 --> 0:35:34.200 because we're kind of these corporate vcs wanting to come 0:35:34.239 --> 0:35:37.200 in on later rounds and then they wanting a cleaner 0:35:37.400 --> 0:35:40.799 capital base. Are they wanting to push people in earlier 0:35:40.840 --> 0:35:41.480 investors out. 0:35:41.760 --> 0:35:44.200 And I'm fine with corporate vcs coming It makes me 0:35:44.239 --> 0:35:45.799 look good if they're, like, you know, coming into the 0:35:45.840 --> 0:35:48.279 round after we made the investment. The important thing is 0:35:48.320 --> 0:35:50.000 we have to find the right timing and find the 0:35:50.040 --> 0:35:53.280 right moment when the founders have discovered a unique insight 0:35:53.440 --> 0:35:56.839 using the AI or using tools as within that AI 0:35:56.920 --> 0:35:58.840 provides to help them figure out how to make you 0:35:58.880 --> 0:36:01.759 know something major different right, whether it's drug discovery or 0:36:01.800 --> 0:36:04.400 it's helping people figure out how how to better balance 0:36:04.400 --> 0:36:07.440 their checkbooks or whatnot like that that moment in time 0:36:07.440 --> 0:36:09.319 when the founder sort of says like this will change 0:36:09.360 --> 0:36:11.640 because of AI, or this will change and I'm using 0:36:11.680 --> 0:36:12.759 AI to help make that change. 0:36:12.800 --> 0:36:14.080 That's where we get excited and you. 0:36:14.040 --> 0:36:15.840 Can continue throughout all the series. 0:36:15.960 --> 0:36:16.920 We were a venture fund, right. 0:36:16.920 --> 0:36:18.840 One of the most amazing thing about venture funds is 0:36:18.840 --> 0:36:20.600 we have a ten year lifetime on the fund. Right, 0:36:20.640 --> 0:36:22.640 we'd like companies to exit earlier, but you know, our 0:36:22.760 --> 0:36:25.760 LPs are all long term investors, right, They're all endowments, 0:36:25.760 --> 0:36:28.680 they're all charitable institutions or university endowments. 0:36:28.760 --> 0:36:28.880 Right. 0:36:28.920 --> 0:36:30.759 They know that there's a ten year time horizon, and 0:36:30.840 --> 0:36:33.040 that's one of the greatest things that we have going 0:36:33.040 --> 0:36:33.800 for us in this business. 0:36:33.840 --> 0:36:35.480 I'm not making the bet for tomorrow. 0:36:35.120 --> 0:36:36.840 So that like some big corporate vis comes in the 0:36:36.840 --> 0:36:38.719 marks of the deal, We're placing the bet for a 0:36:38.719 --> 0:36:41.160 ten year down the road. People forget that Google took, 0:36:41.200 --> 0:36:43.400 you know, almost a decade to really realize it's a 0:36:43.400 --> 0:36:45.759 major potential, right at IPO six years after it was 0:36:46.000 --> 0:36:47.440 after its founding in two thousand and four, But it 0:36:47.560 --> 0:36:50.600 really was ten years when YouTube and when Android and 0:36:50.600 --> 0:36:52.120 when some of the bets that they placed early on 0:36:52.160 --> 0:36:54.040 in the early days of Google became to fruition. 0:36:54.120 --> 0:36:55.840 And same with Canada. Right ten years. 0:36:56.120 --> 0:36:58.319 It's been ten years and now everybody's sort of seeing 0:36:58.320 --> 0:37:00.319 how obvious it is. But back for the first five years, 0:37:00.320 --> 0:37:01.960 everybody sort of out there and scratched their head and said, 0:37:01.960 --> 0:37:02.480 I didn't get it. 0:37:03.280 --> 0:37:06.600 What about getting out? Like what about sort of a 0:37:06.600 --> 0:37:10.080 company that does initially seem to do incredible work Flexport 0:37:10.120 --> 0:37:12.520 for example, and then has some tensions at the top 0:37:12.560 --> 0:37:15.920 and reorganization. Do you stick with them throughout that iteration? 0:37:16.000 --> 0:37:16.600 Absolutely? 0:37:16.640 --> 0:37:18.640 I mean I still hold every share of Flexport stock 0:37:18.680 --> 0:37:20.919 that I've invested in, right. I believe in Ryan and 0:37:20.960 --> 0:37:23.719 his team that much. It's the same with Google. When 0:37:23.760 --> 0:37:25.319 Google iPod, a lot of people have sort of said, 0:37:25.360 --> 0:37:26.960 let's dump the stock, like I don't get it. Like, 0:37:27.000 --> 0:37:28.640 you know, this company has hit its peak and at 0:37:28.680 --> 0:37:30.480 eighty five dollars a share, I think it's at sixteen 0:37:30.520 --> 0:37:33.240 or seventeen thousand dollars dollar a share. Right, that IPO 0:37:33.360 --> 0:37:35.640 investment at Google is one of the best venture investments 0:37:35.680 --> 0:37:38.120 of all time. Right, too bad we don't do public equities, 0:37:38.239 --> 0:37:39.520 but it's one of those things where I look at 0:37:39.560 --> 0:37:41.120 it and go. Does this company have ten years of 0:37:41.160 --> 0:37:43.239 inflection points and does it have more coming? And the 0:37:43.280 --> 0:37:45.640 founders that we invest in, the mission driven founders that 0:37:45.760 --> 0:37:48.880 truly understand how the world will change when they create 0:37:48.920 --> 0:37:50.879 what they're creating, those are the ones that we care about, 0:37:50.880 --> 0:37:52.600 and they usually, you know, create a hundred year of plans. 0:37:52.640 --> 0:37:54.600 I still remember Mal's hundred year plan in canber right 0:37:54.640 --> 0:37:56.160 like she grafted it out on a pirate ship map. 0:37:57.080 --> 0:37:59.080 And I'm sure who perhaps had some insight to Google's 0:37:59.120 --> 0:38:00.440 a hundred year pan as well as you were over 0:38:00.440 --> 0:38:02.959 at Google Analytics and Google Voice or see. It's always 0:38:02.960 --> 0:38:04.320 great to get your controller inviews. 0:38:04.440 --> 0:38:06.040 Thank you, thank you for having me. 0:38:06.040 --> 0:38:09.000 Meanwhile, of course that's SPV ventures see Chang. 0:38:16.239 --> 0:38:16.399 Oh. 0:38:16.440 --> 0:38:18.279 It's a big weekend in the box office picks Ars 0:38:18.320 --> 0:38:21.760 Inside Out too, seeing the best film debut since Barbie. 0:38:21.800 --> 0:38:23.799 It scros one hundred and fifty five million dollars at 0:38:23.800 --> 0:38:26.680 the box office in the US and Canada. Meanwhile, social 0:38:26.719 --> 0:38:29.759 media has been a buzz with the streaming debut of 0:38:29.800 --> 0:38:32.879 season two of House of Dragon, which premiered last night. 0:38:33.200 --> 0:38:35.120 There's a lot in terms of content, not to mention 0:38:35.560 --> 0:38:38.600 the latest film that actually will be allowed in China 0:38:38.719 --> 0:38:41.320 from Walt Disney, Let's stock it All with Githa Ranganath 0:38:41.400 --> 0:38:44.160 and of Bloomberg Intelligence focus in on Disney for a 0:38:44.200 --> 0:38:46.160 moment and the content and the fact that we've got 0:38:46.160 --> 0:38:49.080 people going back to the theaters. Do they just need 0:38:49.120 --> 0:38:50.839 the right movie at the right time with the right 0:38:51.239 --> 0:38:52.000 kind of audience. 0:38:53.239 --> 0:38:56.200 I absolutely think so. And Disney is back in a 0:38:56.200 --> 0:38:58.239 big way, definitely. Big Star is back in a big 0:38:58.280 --> 0:39:00.560 way of Caroline, and so is the barks office. I mean, 0:39:00.719 --> 0:39:03.719 the box office has been really sleepy the whole of 0:39:03.760 --> 0:39:06.600 this year and especially this summer season, and for Disney 0:39:06.640 --> 0:39:08.400 in particular. I mean, we know they've had a whole 0:39:08.480 --> 0:39:12.520 string of misfires, especially Pixar. We know that they released 0:39:12.560 --> 0:39:15.600 three movies direct to streaming during the pandemic era, and 0:39:15.640 --> 0:39:17.319 then after that, you know, they had light Year, they 0:39:17.320 --> 0:39:19.640 had Elemental, which kind of really struggled at the box office. 0:39:19.640 --> 0:39:22.640 But it looks like Inside Out, Too is really resonating 0:39:22.680 --> 0:39:24.600 with everybody. And I think, you know, of course, it 0:39:24.680 --> 0:39:26.920 is a movie that appeals to kids, but I think 0:39:26.960 --> 0:39:28.960 also to parents like you and me, and it's just 0:39:29.000 --> 0:39:32.239 such an emotionally charged film, and box office is all 0:39:32.239 --> 0:39:35.000 about emotion. So they obviously got the formula right. 0:39:35.200 --> 0:39:37.760 Every single parent of teen girls I'm talking to once 0:39:37.920 --> 0:39:40.799 they'd be able to discuss anxiety and how we come 0:39:40.840 --> 0:39:43.080 by this. And so this is one way I'm interested 0:39:43.120 --> 0:39:46.719 though about the global box office. Interestingly, we got on 0:39:46.760 --> 0:39:48.759 social media while Disney saying, look, we are going to 0:39:48.840 --> 0:39:51.319 bring Deadpool and wolverineto China. That's a big deal. 0:39:52.560 --> 0:39:55.399 It's a huge deal. I mean, what we've seen over 0:39:55.480 --> 0:39:58.560 the past few years with China is that Western movies 0:39:58.560 --> 0:40:00.520 have kind of fallen out of favor a little bit. 0:40:00.560 --> 0:40:02.160 So if you just look at kind of how the 0:40:02.239 --> 0:40:05.360 Chinese box office has performed, Actually, China is one of 0:40:05.400 --> 0:40:07.600 the leading markets right now. If you look at year 0:40:07.680 --> 0:40:12.400 to date box office receipts, they're actually ahead of the US. 0:40:12.640 --> 0:40:15.640 So China is definitely critical to the global box office equation. 0:40:15.920 --> 0:40:17.560 And if you kind of just look at how Hollywood 0:40:17.600 --> 0:40:20.239 movies have performed in China, about ten years ago they 0:40:20.280 --> 0:40:23.520 made up almost fifty percent of the Chinese box office. 0:40:23.719 --> 0:40:24.319 That kind of. 0:40:24.320 --> 0:40:26.399 Has been shrinking, so that was down to about thirty 0:40:26.400 --> 0:40:29.200 five percent and twenty nineteen and this year it's probably 0:40:29.280 --> 0:40:30.480 down to about ten percent. 0:40:31.120 --> 0:40:33.000 So having a big movie like. 0:40:32.960 --> 0:40:35.480 This, and especially one of the most anticipated movies of 0:40:35.480 --> 0:40:38.080 the summer, Deadpool and Wolverine go out in China. It 0:40:38.120 --> 0:40:40.320 is big news for Disney Night. Hopefully it will be 0:40:40.360 --> 0:40:41.879 big for the Chinese box office too. 0:40:42.760 --> 0:40:45.120 What's interesting, though, is you say, the tension around whether 0:40:45.400 --> 0:40:46.799 any of us can be bothered to go to the 0:40:46.800 --> 0:40:49.280 theater right now when we can consume such great content 0:40:49.320 --> 0:40:51.480 when we sat a comfort to our own sofa, and 0:40:51.760 --> 0:40:54.560 to a large extent, House Dragon is exactly that. We 0:40:54.640 --> 0:40:58.560 are still wanting to see new content, but quite often 0:40:58.600 --> 0:40:59.680 from franchises we. 0:40:59.680 --> 0:41:03.520 Know, oh absolutely, and you know that's exactly what some 0:41:03.560 --> 0:41:06.160 of these streaming platforms are are betting on, kind of 0:41:06.200 --> 0:41:08.719 making these investments in what they know, you know, will 0:41:08.760 --> 0:41:11.640 be appointment television and HBO and Max have obviously been 0:41:11.680 --> 0:41:13.880 the leaders, the global leaders when it comes to that, 0:41:14.400 --> 0:41:16.560 and of course House of Dragon, the Game of Thrones, 0:41:16.600 --> 0:41:19.399 all of these are you know, huge, huge titles for them, 0:41:19.400 --> 0:41:21.560 and they want to make that an event and an experience. 0:41:21.880 --> 0:41:24.320 But you're absolutely right, you know, this past week and 0:41:24.760 --> 0:41:26.840 n has been such a big win, not just for 0:41:27.320 --> 0:41:29.480 you know, box office and movie going in general, and 0:41:29.520 --> 0:41:32.880 people are going and watching movies more in big screens. 0:41:32.960 --> 0:41:34.960 That is that is huge news. So this is they're 0:41:34.960 --> 0:41:37.040 making it like a whole big event. But then they're 0:41:37.080 --> 0:41:38.960 also coming back home and then you know, kind of 0:41:39.000 --> 0:41:41.480 relaxing on their couches and watching some great streaming content 0:41:41.480 --> 0:41:41.799 as well. 0:41:42.480 --> 0:41:45.480 Summer line up. Eethther Rangon Anthon, We thank you bloombg 0:41:45.480 --> 0:41:48.360 Intelligence some great analysis and that does it for this 0:41:48.520 --> 0:41:50.680 edition of bloombag Technology. I forget to check out our 0:41:50.719 --> 0:41:54.000 podcast find on the terminal as well as online on Apple, Spotify, 0:41:54.040 --> 0:41:56.120 and iha, this is blombg Technology