WEBVTT - Amazon Pummeled and Elon's Twitter Vision 0:00:02.279 --> 0:00:05.640 From the heart of where innovation, money and power collive 0:00:06.400 --> 0:00:10.960 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:11.000 --> 0:00:27.400 Emily Jay. I'm Emily Tech in San Francisco, and this 0:00:27.440 --> 0:00:30.120 is Bloomberg Technology coming up in the next hour. Amazon 0:00:30.200 --> 0:00:34.680 gets absolutely pummeled after predicting a rough holiday shopping season ahead, 0:00:34.680 --> 0:00:39.479 shares falling more than at one point, adding pain to 0:00:39.680 --> 0:00:44.000 an already hurting tech sector. Plus Apple revenue beats estimates, 0:00:44.000 --> 0:00:47.400 but shares drop, the strong dollar and supply issues weighing 0:00:47.440 --> 0:00:50.520 on results. We're gonna have all the details and we're 0:00:50.520 --> 0:00:54.160 getting a glipse into Elon Musk's vision for Twitter, including 0:00:54.240 --> 0:00:57.880 his hope to avoid a quote free for all healthcape 0:00:58.280 --> 0:01:01.040 and I have more on how this could change your feet. 0:01:01.640 --> 0:01:03.560 All that in a moment, but first of vo little 0:01:03.640 --> 0:01:05.960 day on the back of matters, disappointing results in leading 0:01:06.080 --> 0:01:09.080 up to Amazon and Apple out after the bell are 0:01:09.160 --> 0:01:11.520 at Ludlow here to break it all down, add lots 0:01:11.520 --> 0:01:13.800 of action today. Yeah, I mean, and you said it right. 0:01:13.840 --> 0:01:16.880 Amazon getting absolutely punished for the weakness in its fourth 0:01:16.959 --> 0:01:20.280 quarter forecast the holiday quarter. Of course, it's forecast for 0:01:20.319 --> 0:01:23.480 revenue significantly below what the street was looking for a 0:01:23.560 --> 0:01:25.640 hundred and forty to a hundred forty eight billion to 0:01:25.680 --> 0:01:27.640 come in the fourth quarter of the street was looking 0:01:27.680 --> 0:01:30.199 at one five five point five two billion. But also 0:01:30.440 --> 0:01:34.080 the outlook for operating income is weak, and that's putting 0:01:34.120 --> 0:01:36.959 it mildly. We've been saying all day on Bloomberg Television 0:01:36.959 --> 0:01:39.839 that companies in this earning season either live or die 0:01:39.920 --> 0:01:41.840 by their outlook for what's to come in the final 0:01:41.920 --> 0:01:44.840 three months of this year. In comparison to other megact 0:01:44.880 --> 0:01:47.160 text dogs, this is very weak. A mixed bag for 0:01:47.200 --> 0:01:49.920 Apple down one point three and after hours pairing some 0:01:50.000 --> 0:01:52.440 of its earlier losses. But what I would say is 0:01:52.480 --> 0:01:54.560 that it was the iPhone sales that came in weaker 0:01:54.560 --> 0:01:57.680 than expected, along with services. Overall, a beat on revenue 0:01:57.880 --> 0:02:00.120 and a beat on EPs in the quarter. But as 0:02:00.120 --> 0:02:02.480 you talked about this currency headwinds and look at that 0:02:02.520 --> 0:02:04.720 power shares kki K, it's the Investo e t F 0:02:04.760 --> 0:02:06.840 which tracks than has that one hundred. You're gonna have 0:02:06.880 --> 0:02:08.400 to take my word for it, m but being down 0:02:08.440 --> 0:02:10.760 one point four percent in after hours, that is a 0:02:10.800 --> 0:02:12.720 big move for this e t F that tracks and 0:02:12.840 --> 0:02:15.240 has that one hundred so closely so we look ahead 0:02:15.280 --> 0:02:18.000 to Friday's session, where we expect those ripples in the 0:02:18.000 --> 0:02:20.080 market more broadly to be felt by what we're seeing 0:02:20.240 --> 0:02:23.240 in earning season. Meta the story of the day this Thursday, 0:02:23.280 --> 0:02:25.960 biggest drop since February of this year, but the stock 0:02:26.000 --> 0:02:29.760 clothing and closing at its lowest level since January. The 0:02:29.800 --> 0:02:33.720 real concern the growing expenses year on year into three, 0:02:33.800 --> 0:02:37.080 which Meta outlined as being between nine to a hundred 0:02:37.080 --> 0:02:39.920 and one billion dollars, the exact opposite of what investors 0:02:39.919 --> 0:02:42.239 have been calling on Mark Zuckenberg to do. And Twitter, 0:02:42.320 --> 0:02:44.120 let's kind of end on a slightly more bright note, 0:02:44.280 --> 0:02:46.760 m Twitter, we are inching closer and closer to the 0:02:46.760 --> 0:02:49.440 close of this deal. Kurtwagon and I have reported in 0:02:49.440 --> 0:02:53.440 the last ten minutes that Tesla engineering talent have been 0:02:53.440 --> 0:02:58.160 inside Twitter San Francisco headquarters this Thursday, evaluating and assessing 0:02:58.240 --> 0:03:02.000 the underlying code each powers the Twitter platform to help 0:03:02.040 --> 0:03:04.240 you long musk understand it. They've been meetings what they 0:03:04.320 --> 0:03:06.920 called code pairing, where you sit down and work on 0:03:06.960 --> 0:03:09.520 it together. But all the signs from both sides, the 0:03:09.600 --> 0:03:12.000 debt side and the equity financing side, and what I'm 0:03:12.000 --> 0:03:14.079 hearing from sources will get a close of this deal 0:03:14.120 --> 0:03:19.399 Friday is expected. All right, Ed Ludlow, thank you great reporting. 0:03:19.880 --> 0:03:22.760 I want to dig in further to those Amazon results. 0:03:22.800 --> 0:03:25.000 Shares tumbling and late trading due to a holiday quarter 0:03:25.040 --> 0:03:29.160 forecast that came in well below expectations. Rachel Typograph is 0:03:29.200 --> 0:03:31.160 the CEO and founder of mick MC and e commerce 0:03:31.160 --> 0:03:34.760 platform that helps big brands grow, joining us now to 0:03:34.960 --> 0:03:39.680 unpack these results. So not warm and fuzzy outlook for 0:03:39.720 --> 0:03:42.720 Amazon this holiday shopping season. Rachel, what's your take on 0:03:42.760 --> 0:03:45.720 these results? Is this inflation? Is this a broader downturn? 0:03:45.840 --> 0:03:52.600 Looming macro economic factors are impacting everyone at play. At 0:03:52.600 --> 0:03:55.000 the end of the day, net sales for Amazon did 0:03:55.040 --> 0:04:00.480 increase by which was arranged with what Amazon executives were affecting, 0:04:00.480 --> 0:04:03.520 but not what the street wanted. I think a big 0:04:03.560 --> 0:04:07.200 focus was focusing on what would happen During the first 0:04:07.240 --> 0:04:11.400 ever Prime Early Access event that happened in October. Over 0:04:11.440 --> 0:04:14.960 a hundred million items were sold, so all of a sudden, 0:04:15.000 --> 0:04:18.920 Amazon was able to move excess inventory. It also showed 0:04:18.920 --> 0:04:23.599 that despite inflation, consumers were ready to shop as long 0:04:23.640 --> 0:04:27.279 as it was about value and convenience. What we saw 0:04:27.320 --> 0:04:30.680 at Mintmac is that the categories that performed strongest during 0:04:30.680 --> 0:04:35.400 the sale event were health, personal care, and grocery, not 0:04:35.520 --> 0:04:40.279 necessarily consumer electronics toys. So what this continues to show 0:04:40.800 --> 0:04:45.159 is that consumers are willing to spend, but spend on necessities. 0:04:46.720 --> 0:04:49.880 M So it sounds like you're a little more optimistic 0:04:49.920 --> 0:04:53.160 than the typical dooming loom forecast that we've been hearing. 0:04:53.200 --> 0:04:55.839 That said, on the back of not so great results 0:04:55.839 --> 0:05:01.159 from Microsoft, Alphabet Meta could at all get worse than 0:05:01.240 --> 0:05:05.320 we think. So I actually think that Amazon is in 0:05:05.400 --> 0:05:10.559 a very unique position to eat those other companies lunch. 0:05:11.160 --> 0:05:13.960 And the reason why is if you look at Amazon's 0:05:13.960 --> 0:05:17.880 advertising business in this past quarter, it actually grew over 0:05:19.560 --> 0:05:23.320 It's now the third largest player in advertising in the US. 0:05:24.400 --> 0:05:28.040 This is significant, and the reason why is that changes 0:05:28.080 --> 0:05:32.400 in iOS fourteen cook be less Internet that negatively impacted 0:05:32.440 --> 0:05:37.760 Alphabet and Meta are actually benefiting Amazon. Amazon has so 0:05:37.839 --> 0:05:41.919 much first party data, and they own their DSP and 0:05:42.040 --> 0:05:45.400 they've built out self serve capabilities that cater to the 0:05:45.480 --> 0:05:49.120 small medium businesses. They're in a position right now to 0:05:49.360 --> 0:05:54.280 significantly grow their advertising business, which has incredible margins which 0:05:54.320 --> 0:05:57.880 can offset losses in other parts of the business while 0:05:57.920 --> 0:06:03.120 platforms like Alphabet and Eta are struggling. How is this 0:06:03.200 --> 0:06:06.560 impacting the brands that you work with, and obviously you 0:06:06.600 --> 0:06:09.120 help them grow their businesses in part with the you know, 0:06:09.160 --> 0:06:13.520 the help of Amazon and other big e commerce companies. Yeah, 0:06:13.560 --> 0:06:16.720 I mean, we work with huge consumer package good companies, 0:06:17.040 --> 0:06:21.039 and these companies understand that during trying economic times, you 0:06:21.080 --> 0:06:24.440 cannot stop spending. You can look at Procter and Gamble, 0:06:24.640 --> 0:06:28.240 you can look at Coca Cola over their hundred year history, 0:06:28.320 --> 0:06:31.720 they always spend during trying times and they always come 0:06:31.720 --> 0:06:36.800 out ahead. That being said, CFOs that those organizations want 0:06:36.960 --> 0:06:40.599 every single dollar to be able to work really hard, 0:06:41.160 --> 0:06:44.080 and that's why Amazon is in a unique position with 0:06:44.160 --> 0:06:47.920 its advertising business during this time because it has really 0:06:48.000 --> 0:06:53.039 really strong return on investment. And so right now, what 0:06:53.080 --> 0:06:56.839 we're seeing across Fortune one thousand consumer package good companies 0:06:57.160 --> 0:06:59.919 is that they have a dollar to spend their often 0:07:00.160 --> 0:07:04.120 moving it into environments like retail media where there's guaranteed 0:07:04.320 --> 0:07:08.960 r O. I. You have some interesting thoughts about buy now, 0:07:09.000 --> 0:07:13.040 Pay later and how that might have made the current 0:07:13.560 --> 0:07:20.240 consumer uh situation worse. Can you share that? Yeah? Absolutely, 0:07:20.760 --> 0:07:26.320 I mean, if you look at which honestly within commerce 0:07:26.360 --> 0:07:30.320 are anomaly years. We always guide our customers to look 0:07:30.320 --> 0:07:33.239 at two thousand nineteen. That's a much more realistic comp 0:07:33.760 --> 0:07:40.440 But in many consumers were trained to essentially spend money 0:07:40.480 --> 0:07:44.840 that they don't have. As interest rates have risen, all 0:07:44.880 --> 0:07:48.200 of a sudden, consumers are recognizing that that by now 0:07:48.320 --> 0:07:52.000 pay later value proposition will put them in major debt 0:07:52.360 --> 0:07:56.360 and cost them so much. And so I share this 0:07:56.840 --> 0:07:59.080 because there was a lot of fake money that was 0:07:59.120 --> 0:08:02.680 being spent in the ecosystem, and if you remove that 0:08:03.480 --> 0:08:05.960 all of a sudden, very quickly, you'll start to see 0:08:06.000 --> 0:08:09.240 trends that look more like two thin. And so in 0:08:09.280 --> 0:08:11.240 the long run, I actually think this is going to 0:08:11.280 --> 0:08:15.640 be benefit consumers because hopefully you'll prevent them from going 0:08:15.680 --> 0:08:20.800 into deeper debt or debt at all together. All right, 0:08:21.240 --> 0:08:25.960 Rachel Typograph, founder and CEO of Micmac, really interesting insights 0:08:26.000 --> 0:08:28.880 from you. Thank you for sharing all of that with us. 0:08:29.840 --> 0:08:32.640 Sticking with Amazon, The National Labor Relations Board says CEO 0:08:32.679 --> 0:08:36.000 Andy Jasse violated federal labor laws when he told me 0:08:36.240 --> 0:08:40.920 this about workers earlier this year. We happen to think 0:08:40.920 --> 0:08:43.520 they're better off without a union. For a number of reasons, 0:08:44.000 --> 0:08:48.000 including the fact that you know it's it's much harder 0:08:48.720 --> 0:08:51.120 when you have a union to have a direct relationship 0:08:51.200 --> 0:08:56.120 with your manager and to get things done quickly. The 0:08:56.200 --> 0:08:59.040 complaint against Jasse follows a number of big tech union 0:08:59.120 --> 0:09:03.040 votes from workers across the country. In a statement, Amazon says, 0:09:03.080 --> 0:09:07.200 the comments lawfully explain Amazon's views on unism and unization 0:09:07.240 --> 0:09:09.040 and the way it could affect the ability of our 0:09:09.080 --> 0:09:12.280 employees to deal directly with their managers. And they began 0:09:12.320 --> 0:09:15.280 with a clear recognition of our employees right to organize 0:09:15.280 --> 0:09:20.400 and in no way contain threats of reprisal. Meantime, got 0:09:20.400 --> 0:09:22.600 to dig into Apple results now, the tech giant posting 0:09:22.640 --> 0:09:26.839 weaker than expected iPhone and services sales in its latest quarter. Juliasc, 0:09:27.000 --> 0:09:30.800 principal analyst at forest Or Research, with us now, So, Julie, 0:09:30.840 --> 0:09:34.800 why our investors so uh seemingly unhappy with this report? 0:09:36.360 --> 0:09:38.040 I think it's it's hard for me to say why 0:09:38.080 --> 0:09:41.680 investors are seemingly so unhappy with this report? Um, but 0:09:41.720 --> 0:09:43.360 I think one of the things, you know, that I 0:09:43.400 --> 0:09:46.080 look at more broadly is you know it's it's there. 0:09:46.120 --> 0:09:48.200 You know it's not the big quarter. Um. You know 0:09:48.280 --> 0:09:51.480 they got product out. Even though consumers could order products, 0:09:51.480 --> 0:09:53.520 there were still a lot of delays and shipping products. 0:09:54.080 --> 0:09:56.360 They just announced a new tablet line up last week, 0:09:56.800 --> 0:09:59.280 So I think, you know, the third whatever, you know, 0:09:59.320 --> 0:10:00.800 that quarter is going to what it's going to be. 0:10:00.840 --> 0:10:02.560 But I think, you know, it's really important for every 0:10:02.559 --> 0:10:05.760 consumer electronics manufacturers, you know, the holiday season, and that's 0:10:05.760 --> 0:10:07.640 what we've got to look forward to, and that's you know, 0:10:07.679 --> 0:10:09.439 what's most important for them the rest of the year. 0:10:11.360 --> 0:10:15.760 So let's talk about that. Some words from Tim Cook here. 0:10:15.960 --> 0:10:18.320 He says, as we head into the holiday season with 0:10:18.360 --> 0:10:21.679 our most powerful lineup ever, we're leading with our values 0:10:21.720 --> 0:10:24.680 and every action we take and every decision we make, 0:10:24.679 --> 0:10:28.200 we're deeply committed to protecting the environment, securing user privacy, 0:10:28.240 --> 0:10:31.480 strengthening accessibility, and creating products and services that can unlock 0:10:31.800 --> 0:10:36.120 humanity's full creative potential. When you look at the product lineup, 0:10:36.160 --> 0:10:39.600 what's available this holiday season, the way that they're keeping 0:10:39.720 --> 0:10:43.199 you know, many of the prices the same. How optimistic 0:10:43.240 --> 0:10:45.080 are you that they're gonna be able to move a 0:10:45.120 --> 0:10:48.160 lot of products? So, you know, I do have some optimism. 0:10:48.240 --> 0:10:50.000 We just put out a force to just put out 0:10:50.000 --> 0:10:53.600 their holiday forecast and we're predicting we're forecasting an increased 0:10:53.640 --> 0:10:57.040 online spent of about fourteen point six percent. When we've 0:10:57.040 --> 0:11:00.440 surveyed consumers, we have eighteen percent of consumers seeing gonna 0:11:00.320 --> 0:11:03.040 do more this year than last year. On the flip side, 0:11:03.120 --> 0:11:05.080 we still have about forty percent saying that they're going 0:11:05.120 --> 0:11:08.480 to spend less. When we talk to consumers about how 0:11:08.480 --> 0:11:12.160 they're feeling about the economic headwinds, we do have you know, 0:11:12.240 --> 0:11:14.280 depending on the question that you asked, between like thirty 0:11:14.360 --> 0:11:17.920 nine and forty one of US online consumers saying, UM, 0:11:17.960 --> 0:11:22.120 delaying making purchases, UM, I am worried about the economy. 0:11:22.320 --> 0:11:25.080 I there are things that I'm gonna pull back on. UM, 0:11:25.200 --> 0:11:27.839 and then you know, just not making purchases they want 0:11:27.840 --> 0:11:29.560 to make. And then if you ask them to the 0:11:29.559 --> 0:11:32.400 sentiment of how they're doing, there's probably about fifty of 0:11:32.400 --> 0:11:34.360 them that are worried about the economy and worried about 0:11:34.400 --> 0:11:37.000 their money. And definitely, you know, expect to slow down 0:11:37.040 --> 0:11:39.880 purchasing this holiday season. So I think it's you know, 0:11:39.920 --> 0:11:41.360 going to be a question of you know, what is 0:11:41.400 --> 0:11:43.319 that mix? You know, is that eighteen percent the a 0:11:43.440 --> 0:11:45.800 fluid eighteen percent that apple relies on year in and 0:11:45.880 --> 0:11:47.960 year out. Um, but I think it's you know, it's 0:11:48.000 --> 0:11:49.880 it's still gonna be a good holiday season, but it 0:11:49.960 --> 0:11:51.960 may not be what everybody wanted it to be. You know, 0:11:51.960 --> 0:11:53.600 if we were to look at the forecast from earlier 0:11:53.600 --> 0:11:56.360 in the year, it's gonna be a tough season. Meantime time, 0:11:56.960 --> 0:12:00.240 China has historically been a huge market for Apple. Tim 0:12:00.280 --> 0:12:03.680 Cook was really the architect of Apple's China strategy. And 0:12:03.679 --> 0:12:05.880 we're in the middle of of a of a potentially 0:12:06.360 --> 0:12:09.840 history making decoupling of the US and China. How is 0:12:09.880 --> 0:12:13.439 Apple handling that and how much will that impact or 0:12:13.480 --> 0:12:17.640 potentially hurt Apple over the longer term. Yes, so I 0:12:17.640 --> 0:12:20.280 think that's always a hard question, Emily, because I think always, 0:12:20.360 --> 0:12:22.600 you know, the devil is in the details. I think 0:12:22.720 --> 0:12:25.040 one of the things that's been interesting about watching China 0:12:25.080 --> 0:12:27.760 from a consumer standpoint, which is closer to what I follow, 0:12:28.240 --> 0:12:30.560 is a Chinese there's still far more lockdown than we 0:12:30.600 --> 0:12:32.640 are here in the United States than we are in Europe, 0:12:32.880 --> 0:12:36.200 and so there is more consumption of um, you know, 0:12:36.280 --> 0:12:39.720 online media, virtual worlds. We're seeing far more interest in 0:12:39.720 --> 0:12:42.480 things like the metaverse. Uh, and you know in streaming 0:12:42.480 --> 0:12:45.040 media and things, they keep them entertained at home. So 0:12:45.160 --> 0:12:46.920 I think it's it's it's hard for me to say, 0:12:46.960 --> 0:12:49.880 you know, what's going to happen in China, but it's 0:12:49.920 --> 0:12:51.960 a very different environment that we have here in the 0:12:52.080 --> 0:12:54.960 US in terms of, like I said, our mobility and 0:12:54.960 --> 0:12:57.360 how much we're depending on media and electronics and so 0:12:57.520 --> 0:12:59.640 forth that keeps entertained. It can needed to work, you know, 0:12:59.760 --> 0:13:01.839 stay in touch with our friends and family and so forth. 0:13:02.040 --> 0:13:06.440 So it'll be interesting to watch. Meantime, I have to 0:13:06.440 --> 0:13:11.479 ask you about the controversy changes in Apple's ad tracking policies, 0:13:11.679 --> 0:13:14.040 Meta hitting back this week with how much it's hurting 0:13:14.080 --> 0:13:17.200 them and other social media companies. You've got the skeptics 0:13:17.200 --> 0:13:19.160 and the critics out there saying that Apple isn't doing 0:13:19.160 --> 0:13:21.920 this to protect privacy or security, but to add to 0:13:22.000 --> 0:13:26.480 Apple's own bottom line. What's your take, So, you know, 0:13:26.520 --> 0:13:28.640 there's there's a little bit of both, But I don't 0:13:28.679 --> 0:13:32.760 know that anyone's crying for um, you know, half Pool 0:13:32.840 --> 0:13:36.800 or Google's diminished ability to monetize the data of consumers. Right, 0:13:36.880 --> 0:13:39.439 those companies have grown very, very wealthy over the past 0:13:39.440 --> 0:13:42.160 couple of decades by doing so and I think as 0:13:42.160 --> 0:13:44.080 we look forward and we're looking at the values that 0:13:44.120 --> 0:13:46.920 consumers have, you know, Tim Cooke really hits on them 0:13:46.920 --> 0:13:48.880 one after day, that it is about our privacy, it 0:13:48.960 --> 0:13:51.600 is about security, it is about responsibility, it is about 0:13:51.640 --> 0:13:54.480 the environment, it is about trust. And if we look 0:13:54.520 --> 0:13:56.360 at some of the biggest themes that our clients are 0:13:56.400 --> 0:13:59.840 asking about, it's all of those. It's trust, it's the economy, 0:14:00.000 --> 0:14:02.280 it's the green you know, it's being green, it's security, 0:14:02.280 --> 0:14:05.000 it's privacy, and so forth. And I think that's really 0:14:05.040 --> 0:14:07.720 the long game. Do I think that advertising is going 0:14:07.760 --> 0:14:10.120 to contribute in a substantial way to Apple's bottom line 0:14:10.160 --> 0:14:12.600 in the next five years, I'd be surprised if they 0:14:12.600 --> 0:14:14.400 break out that revenue. I'd be surprised if it begins 0:14:14.400 --> 0:14:16.640 to be that big. Well, I was going to hear 0:14:16.679 --> 0:14:19.800 from you, Julie, vice president, principal analyst at Forest for Research, 0:14:19.840 --> 0:14:30.080 Thank you so much. Elon Musk has both tried to 0:14:30.120 --> 0:14:33.520 acquire and walk away from acquiring Twitter. Here's how we 0:14:33.640 --> 0:14:37.160 got here. April four a regulatory filing reveals that Elon 0:14:37.240 --> 0:14:41.320 Musk has rapidly become the largest Twitter shareholder. April fourteen, 0:14:41.680 --> 0:14:44.880 in an sec filing and accompanying tweet, Musk says he 0:14:44.920 --> 0:14:47.480 will buy out stockholders in a cash deal and take 0:14:47.640 --> 0:14:51.000 Twitter private. The offer, valued at forty three billion dollars, 0:14:51.120 --> 0:14:54.240 is a fifty percent premium over the price. In January. 0:14:54.840 --> 0:14:58.280 May seventeen, after Musk and Twitter CEO Para Gang Rowel 0:14:58.360 --> 0:15:01.640 have it out on Twitter, Musk tweets he won't proceed 0:15:01.840 --> 0:15:04.680 unless Twitter can prove bots are less than five percent 0:15:04.800 --> 0:15:08.440 of its users. July eight, Elon Musk backs out of 0:15:08.480 --> 0:15:11.520 the deal, saying in a filing that Twitter made misleading 0:15:11.560 --> 0:15:16.600 representations over the box issue. July twelve, Twitter sues Musk 0:15:16.760 --> 0:15:20.200 to force him to complete the deal. Musk counter suits. 0:15:20.600 --> 0:15:23.840 October four, after a trove of Musks in a circle 0:15:23.920 --> 0:15:27.240 text are revealed in court filings, Musk revives his bid 0:15:27.400 --> 0:15:31.000 at the original offer price, potentially avoiding a courtroom fight. 0:15:31.480 --> 0:15:35.520 October six, the Delaware Chancery judge pauses the court case, 0:15:35.720 --> 0:15:38.400 giving the parties more time to complete a deal. Of 0:15:38.520 --> 0:15:42.280 five pm October twenty eight, hard deadline is set. Otherwise, 0:15:42.440 --> 0:15:49.520 the trial resumes in November. M just some of the 0:15:49.600 --> 0:15:52.000 Musk Twitter saga there that we've been living through for 0:15:52.160 --> 0:15:55.760 most of the year. But finally this deal seems imminent. 0:15:56.200 --> 0:15:58.920 In a tweet addressed to advertisers, Musk said he wants 0:15:58.920 --> 0:16:01.960 to make Twitter a well meantown square with highly relevant 0:16:02.000 --> 0:16:05.479 ads and less of a quote free for all healthscape 0:16:05.760 --> 0:16:07.720 for more. I want to bring in Bloomberg, Sarah Fryer, 0:16:07.800 --> 0:16:10.880 and Sarah. Our latest reporting is that Tesla engineers have 0:16:10.960 --> 0:16:13.840 gone to Twitter headquarters to review some of Twitter's code, 0:16:14.160 --> 0:16:17.480 and also that Twitter's code has been frozen ahead of 0:16:18.080 --> 0:16:22.000 a pending deal. Sort of changes can be made at 0:16:22.000 --> 0:16:25.760 the eleventh hour. What's the latest that we know, Well, 0:16:26.200 --> 0:16:28.400 it looks to us from our sources that these Tesla 0:16:28.440 --> 0:16:32.520 engineers are meant to review the code to help Elon 0:16:32.640 --> 0:16:35.480 musk assess it and think about what needs to be done. Um. 0:16:35.520 --> 0:16:38.000 You know, companies that have been around for as many 0:16:38.040 --> 0:16:40.800 years as Twitter have their their code can always be 0:16:40.800 --> 0:16:44.240 confusing to newcomers. So he's bringing in some trusted fellow 0:16:44.440 --> 0:16:47.600 of folks from his company he also runs UM. And 0:16:47.920 --> 0:16:51.120 then just in terms of the note to advertisers this morning, 0:16:51.720 --> 0:16:54.520 I think that Elon Musk is is trying a little 0:16:54.520 --> 0:16:58.120 bit of um, a reversal of what what has been 0:16:58.200 --> 0:17:00.360 said out there about what he's going to do. I mean, 0:17:00.400 --> 0:17:05.000 we all know he has this free speech plan for Twitter. 0:17:05.560 --> 0:17:08.240 What that's going to mean is is loosening up a 0:17:08.240 --> 0:17:11.920 lot of the moderation standards and bringing on content that 0:17:12.119 --> 0:17:15.439 could make advertisers uncomfortable. So I'm not exactly sure. How 0:17:15.480 --> 0:17:18.000 are you going to do both things at once? As 0:17:18.000 --> 0:17:21.359 they wrote um today for our quality newsletter, you you 0:17:21.400 --> 0:17:25.440 can't have a commercially viable social network, one that advertisers 0:17:25.480 --> 0:17:28.800 want to to buy promotions on, one that people want 0:17:28.840 --> 0:17:32.480 to join without some level of content moderation. There has 0:17:32.520 --> 0:17:34.600 to be some line that he's he's going to draw, 0:17:34.640 --> 0:17:36.880 and he's going to have to figure out what kind 0:17:36.880 --> 0:17:41.720 of balance he is comfortable with. How are Twitter employees 0:17:41.760 --> 0:17:44.240 feeling about this? We know he was at headquarters yesterday. 0:17:44.359 --> 0:17:48.440 There's this picture that was posted if everyone gathered around him, 0:17:48.560 --> 0:17:52.160 some people were smiling, didn't look so, you know, potentially 0:17:52.160 --> 0:17:53.919 doom and gloom. Of course, you only can get a 0:17:53.920 --> 0:17:57.440 few few people in one photo. Um, but how our Twitter? 0:17:57.480 --> 0:17:59.880 How our Twitter employees feeling about this? Given that he's 0:18:00.520 --> 0:18:02.960 you know, there's reports that he might cut up to 0:18:04.040 --> 0:18:07.560 the workforce. He's bringing in engineers from another company to 0:18:07.600 --> 0:18:10.560 look at their code. Well, we we skipped last night 0:18:10.600 --> 0:18:12.879 that he actually told Twitter employees that he does not 0:18:13.000 --> 0:18:15.840 plan to cut seventy five percent of the staff. In fact, 0:18:15.920 --> 0:18:18.000 he he claims he don't know where that number came from. 0:18:18.040 --> 0:18:20.639 Of course, you know, as we previously ported, it came 0:18:20.640 --> 0:18:24.480 from his own presentations to equity investors. So I think 0:18:24.520 --> 0:18:28.600 that there's just a lot of of of putting down 0:18:28.600 --> 0:18:31.760 the hatchet and all of this tension, between months of 0:18:31.840 --> 0:18:35.480 cork fights between Twitter and Elon Musk, you know, coming 0:18:35.480 --> 0:18:37.879 to a place where they can work together, where he 0:18:37.920 --> 0:18:41.840 can work with their partners and advertisers, where he's saying basically, 0:18:42.520 --> 0:18:44.800 I come in peace. You know, I am I Am 0:18:44.840 --> 0:18:46.960 going to be the boss here and and I'm going 0:18:47.000 --> 0:18:49.520 to care about this. And he's comes he comes in 0:18:49.600 --> 0:18:52.080 with this this perspective, or at least he says in 0:18:52.160 --> 0:18:55.200 his letters to appetituers that he's doing this for humanity. Right, 0:18:55.359 --> 0:18:58.879 there's a very grandiose vision for what Twitter can be 0:18:59.080 --> 0:19:02.240 under his law. Um, and I think that that that 0:19:02.359 --> 0:19:05.280 kind of messaging actually does appeal to Twitter employees. That 0:19:05.480 --> 0:19:08.160 they tend to say that when you talk to them, 0:19:08.200 --> 0:19:10.880 they're in it for for the impact you can have 0:19:11.119 --> 0:19:15.040 on the world and our culture and our our you know, politics, 0:19:15.080 --> 0:19:17.560 like you know, they can make a difference. So I 0:19:17.600 --> 0:19:20.480 think that is historically why people have joined Twitter and 0:19:20.760 --> 0:19:23.560 not maybe some other bigger tech companies that might pay 0:19:23.600 --> 0:19:27.280 them better. So it'll be interesting to see if if 0:19:27.359 --> 0:19:31.119 Musk can can actually come in peace, even though he's 0:19:31.200 --> 0:19:33.000 certainly going to have to change quite a bit. He's 0:19:33.000 --> 0:19:36.800 going to have to cut staff and um dramatically pivot 0:19:36.840 --> 0:19:41.520 the company and his vision. So he's in there talking 0:19:41.520 --> 0:19:44.760 to employees, he's walking around with the kitchen sink. Give 0:19:44.880 --> 0:19:48.000 us the TikTok of the next twenty four hours. When 0:19:48.040 --> 0:19:50.280 does this deal get sealed? I mean, we're already reporting 0:19:50.320 --> 0:19:52.800 that arch Capital is going to replace Twitter in the 0:19:52.920 --> 0:19:58.560 SMP five. It's really a matter of time before the 0:19:58.720 --> 0:20:02.840 share stop trading on on the open market. That that 0:20:02.880 --> 0:20:06.560 will be our our first public signal perhaps that the 0:20:06.720 --> 0:20:10.560 deal is done. UM, we're also looking at filings that 0:20:10.640 --> 0:20:13.800 might happen in Delaware that they need. Whatever is being 0:20:13.880 --> 0:20:16.719 signed right now, it's not final until you know. It's 0:20:16.760 --> 0:20:18.359 like when you buy a house, is not final until 0:20:18.400 --> 0:20:20.480 you get the keys. That all these little steps have 0:20:20.680 --> 0:20:25.240 to be done before we can say the deal is closed. Um, 0:20:25.280 --> 0:20:28.960 but it looks very much on track right now. There 0:20:28.960 --> 0:20:33.080 are unlikely to be I say this with the grain 0:20:33.119 --> 0:20:35.639 of salt. Right, it has been quite a zaga, but 0:20:35.680 --> 0:20:38.320 they're unlikely to be sumbling blocks between now and I 0:20:38.440 --> 0:20:41.760 PM on Friday, UM Eastern time, which is when the 0:20:41.880 --> 0:20:46.520 judge Enchance reports that this needs to be completely complete 0:20:46.560 --> 0:20:48.840 by She wants an email in her inbox by by 0:20:48.960 --> 0:20:54.360 PM saying it's dumb, we don't need to go to court. Alright. Well, 0:20:54.359 --> 0:20:56.520 some people might not be getting some sleep tonight. I 0:20:56.520 --> 0:20:59.720 hope one of them is not you. Sarah Friar are 0:20:59.760 --> 0:21:12.040 Blue Brick Tech editor, Thank you so much. Microsoft is 0:21:12.040 --> 0:21:14.520 out with its first ever report on media and pay 0:21:14.760 --> 0:21:17.880 for its workforce. It shows that women do better than 0:21:18.359 --> 0:21:22.240 the US average, but black and Hispanic employees remain underrepresented 0:21:22.520 --> 0:21:27.240 in higher level rules, and Microsoft's employees of color overall 0:21:27.480 --> 0:21:31.280 make less. Tesla facing a criminal investigation to its self 0:21:31.359 --> 0:21:34.119 driving system. Bloombergers learned that the US Justice Department is 0:21:34.160 --> 0:21:38.200 investigating whether the company made misleading claims about tesla cars 0:21:38.240 --> 0:21:41.800 ability to drive themselves down. Jones reporting the SEC is 0:21:41.800 --> 0:21:46.320 probing Tesla as well, coming up. What does the consumer 0:21:46.359 --> 0:21:48.960 want in this inflationary environment. We're gonna be talking about 0:21:48.960 --> 0:22:06.439 more earnings with shopifies Harley Finkelstein, This is Bloomberg. Welcome 0:22:06.480 --> 0:22:09.240 back to Boomer Technology, Emily Check in San Francisco. Let's 0:22:09.240 --> 0:22:13.320 get back to the after hours action Apple and Amazon. 0:22:13.400 --> 0:22:17.280 Back to Ed Ludlow and Ed. Apple investors seem to 0:22:17.320 --> 0:22:20.720 like what they're hearing from Tim this call. They were 0:22:20.760 --> 0:22:22.680 liking what they were hearing from Tim Cook, but then 0:22:22.960 --> 0:22:25.399 Luca Mastreet started speaking and they did not like that. 0:22:25.520 --> 0:22:27.600 The stock at one point up two now through ours 0:22:27.600 --> 0:22:30.680 then dropping suddenly. It seems to be the headlines crossing 0:22:30.720 --> 0:22:34.360 that they're not giving revenue guidance because of the uncertainty 0:22:34.400 --> 0:22:37.920 in the world and the macro picture. Total company revenue 0:22:37.960 --> 0:22:42.160 growth will decelerate compared to the fourth quarter, the fiscal 0:22:42.200 --> 0:22:45.000 fourth quarter, and the forecast here is that mac revenue 0:22:45.000 --> 0:22:48.479 will decline substantially in the holiday quarter. Those are not 0:22:48.640 --> 0:22:50.760 things of the market like you see Apple now down 0:22:50.760 --> 0:22:52.920