WEBVTT - Nasdaq's Big Two-Day Rally and the FTX Fallout 0:00:13.880 --> 0:00:16.240 I'm Caroline Hyde in New York and this is Rumberg 0:00:16.280 --> 0:00:18.840 Technology coming up in the next hour, the ft X fallout. 0:00:18.880 --> 0:00:22.760 It continues, sam Anguin Freed steps down as CEO, laying 0:00:22.760 --> 0:00:25.600 out as well the timeline for his company's bankruptcy. We're 0:00:25.640 --> 0:00:28.479 going to dive into the implications for cryptocurrencies at large 0:00:28.520 --> 0:00:32.640 and the future of the underlying technology. Plus, Twitter suspended 0:00:32.920 --> 0:00:36.200 it's eight dollar subscription program to combat and growing problem 0:00:36.200 --> 0:00:40.040 of user impersonating major brands. More on the revenue strategy 0:00:40.159 --> 0:00:42.839 in a moment, And the text space is under a 0:00:43.000 --> 0:00:46.320 major restructuring, but you never know it looking at the markets, 0:00:46.360 --> 0:00:48.680 and that's like One just notched its biggest two day 0:00:48.840 --> 0:00:53.479 record run in nine up nine, the best since two 0:00:53.479 --> 0:00:56.080 thousand and eight. Even though we see the meta layoffs, 0:00:56.120 --> 0:00:58.959 even though we see Amazon looking at trimming its workforce. 0:00:59.000 --> 0:01:01.840 Not to mention Dizzy me just now, we'll get to 0:01:01.880 --> 0:01:04.360 all of that in by a moment. At first, Let's 0:01:04.360 --> 0:01:07.320 stick with you, our audience, because we asked you to 0:01:07.440 --> 0:01:10.040 admit the myriad of news that we're just hearing from Emily, 0:01:10.080 --> 0:01:11.600 the fact that we have these layoffs, the fact that 0:01:11.600 --> 0:01:13.360 we have f t X imploding, the fact that of 0:01:13.360 --> 0:01:15.920 course we still have this run up in stocks. What 0:01:16.040 --> 0:01:18.360 was the most important thing that caught your eye? You 0:01:18.400 --> 0:01:20.840 took to Twitter. You told us knew it wasn't Twitter. No, 0:01:20.959 --> 0:01:23.399 it wasn't Meta. It was f t X bankruptcy. That 0:01:23.520 --> 0:01:26.200 is what rocked your world the most. Didn't rock our own, 0:01:26.280 --> 0:01:29.959 Katie Greifeld's world the most. Is it the biggest shocker 0:01:30.080 --> 0:01:33.039 for you? Katie? It was the biggest shocker? I would say. 0:01:33.080 --> 0:01:35.600 I think back to who I was a week ago 0:01:35.800 --> 0:01:38.120 last for a different post. I was so young, I 0:01:38.200 --> 0:01:40.880 was so naive. I didn't know that f t X 0:01:40.959 --> 0:01:43.399 was on sale. You had told me that we would 0:01:43.480 --> 0:01:45.959 see f t X, the crypto exchange, one of the 0:01:46.000 --> 0:01:48.840 biggest players in this space file for bankruptcy. I would 0:01:48.880 --> 0:01:50.920 not have believed you if you would have told me 0:01:51.000 --> 0:01:54.280 to that bitcoin would be trading around seventeen thousand dollars 0:01:54.280 --> 0:01:56.240 a coin after that too, I want to believed that 0:01:56.320 --> 0:02:00.000 either it's you obviously have seen a really rocky crypto 0:02:00.000 --> 0:02:03.120 a market this week, a little bit of resilience, though 0:02:03.160 --> 0:02:05.840 I don't know's We're not talking about ten thousand, we're 0:02:05.840 --> 0:02:10.320 talking about seventeen. And then therefore, let's talk about the 0:02:10.400 --> 0:02:13.120 ripple effects, the contagion concerns, the issue that therefore we 0:02:13.160 --> 0:02:15.200 see across the rest of the markets, because that's sort 0:02:15.200 --> 0:02:16.920 of where we're going with this, the fact that for 0:02:17.040 --> 0:02:19.760 once the correlations broke down, yes you still have the 0:02:19.800 --> 0:02:21.519 shock and all when it comes to ft X and 0:02:21.520 --> 0:02:23.640 the rest of the crypto space, But actually that didn't 0:02:23.639 --> 0:02:25.560 hold bout the NASTAC and was that something people were 0:02:25.560 --> 0:02:28.040 talking about, not at all. It's really this is playing 0:02:28.080 --> 0:02:30.400 out in the most dramatic way possible in markets in 0:02:30.480 --> 0:02:33.080 that on the upside, you have the NASZAC one hundred, 0:02:33.160 --> 0:02:36.320 what looking at one of its best weeks and years, 0:02:36.360 --> 0:02:38.560 Like you said that headline at the top, it's best 0:02:38.600 --> 0:02:41.720 two day run since two thousand and eight. It's interesting 0:02:41.760 --> 0:02:46.079 because previously, until really this week, stocks and crypto were 0:02:46.120 --> 0:02:48.960 tied at the hip. It was the same exact trade. 0:02:49.320 --> 0:02:52.200 To really the detriment of the bitcoin bulls, the crypto 0:02:52.240 --> 0:02:54.680 bulls that I would talk to, they would say, this decoupling, 0:02:54.720 --> 0:02:56.880 when it happens from the equity market, it will be 0:02:56.919 --> 0:03:01.440 such a relief for the crypto market. The decoupling happened, 0:03:01.919 --> 0:03:04.880 it was not bolish for crypto at all, and man 0:03:04.919 --> 0:03:08.320 tech stocks just really ripping after that CPI report. And 0:03:08.360 --> 0:03:10.440 what's interesting though, of course, amid all of this is 0:03:10.440 --> 0:03:12.880 the concerns about the tech layoffs, is the issue of 0:03:12.880 --> 0:03:16.480 the fact that suddenly we're in a different, different paradigm 0:03:16.720 --> 0:03:19.560 right now where companies that we thought were no matter what, 0:03:19.720 --> 0:03:22.600 unstoppable and now having to trim themselves. We're just getting 0:03:22.639 --> 0:03:24.760 the latest headline as the CNBC headline. We know from 0:03:24.760 --> 0:03:27.120 Disney that they're looking at freezes, maybe even job cuts. 0:03:27.120 --> 0:03:29.880 We saw it from Meta, the biggest layoffs that we've 0:03:29.880 --> 0:03:32.160 ever seen in its history. Is that something that we 0:03:32.160 --> 0:03:34.200 should prepare ourselves more for what we've got yet further 0:03:34.240 --> 0:03:36.400 earnings next week for example. I mean, these are the 0:03:36.400 --> 0:03:38.960 type of headlines that are unfortunately pretty common when you 0:03:39.040 --> 0:03:42.560 have the FED hiking so aggressively. This is the impact 0:03:42.800 --> 0:03:45.840 of tightening financial conditions. These are the sort of news 0:03:45.840 --> 0:03:48.720 events that we unfortunately have to get used to. And 0:03:48.760 --> 0:03:51.440 when you contrast that with what we're seeing in the markets, 0:03:51.560 --> 0:03:54.000 this really goes to show sort of the cold blooded 0:03:54.040 --> 0:03:58.520 nature of markets, that forward looking sort of stance of 0:03:58.640 --> 0:04:01.000 markets that okay, when you start to see these type 0:04:01.000 --> 0:04:03.280 of headlines, when you start to see the impact of 0:04:03.320 --> 0:04:06.440 these fed rate hikes. Maybe that closer gets us closer 0:04:06.480 --> 0:04:09.160 to the end destination. And you pair that again with 0:04:09.200 --> 0:04:11.560 the CPI print that we've got a seven handle, nothing 0:04:11.600 --> 0:04:15.320 to celebrate, but cooler than expected. That maybe gets us 0:04:15.360 --> 0:04:18.680 closer to the end destination, maybe closer to that pivot. 0:04:18.880 --> 0:04:21.040 As I read for many though, this market is kind 0:04:21.040 --> 0:04:23.560 of dangerous now, and the fact that Jonathan God himself 0:04:23.560 --> 0:04:27.520 a real bull saying that was an overreaction one to 0:04:27.560 --> 0:04:29.680 bear in mind as we digest the data that's still 0:04:29.680 --> 0:04:32.080 to come over the next week or so. Kitty Greifeld 0:04:32.320 --> 0:04:36.080 a different person from one week ago. We thank hers 0:04:36.120 --> 0:04:39.040 so much. Meanwhile, sticking on the crypto fallout, let's talk 0:04:39.040 --> 0:04:41.599 about f t X. Let's talk about the rippling across 0:04:41.640 --> 0:04:43.960 the entire ecosystem here, but in by his utually Yang 0:04:44.000 --> 0:04:46.520 is with us on the story. I've seen your byline 0:04:46.640 --> 0:04:49.159 on every single piece of update that we've been having. 0:04:49.200 --> 0:04:51.960 You must be exhausted, but probably not as exhausted as 0:04:52.000 --> 0:04:55.599 man whose wealth went from sixteen billion to zero this week? 0:04:56.400 --> 0:04:58.440 What are you? What is the next knock on effect? 0:04:58.480 --> 0:05:00.440 What are we hearing and waiting for? In terms of 0:05:00.560 --> 0:05:03.080 the news about the bankruptcy for example. Of course, the 0:05:03.200 --> 0:05:06.520 bankruptcy news itself is a huge shocker for the industry. 0:05:06.800 --> 0:05:09.120 No one has seen this coming me neither. When I 0:05:09.120 --> 0:05:11.200 started the week, I did not know this is how 0:05:11.240 --> 0:05:13.919 it's going to all pan out. We're starting to see 0:05:13.960 --> 0:05:18.280 some contagion effect coming out. We know that for example, Voyager, 0:05:18.400 --> 0:05:21.919 which is a bankrupt lender earlier on that was supposed 0:05:21.920 --> 0:05:24.000 to be bailed out by f t X, they now 0:05:24.080 --> 0:05:27.520 had to restart their biding process essentially because of this 0:05:27.640 --> 0:05:31.360 bankruptcy procedure for for f t X. And then at 0:05:31.360 --> 0:05:34.720 the same time, even for a big crypto market makers 0:05:34.720 --> 0:05:38.200 such as Genesis, they have money that's being trapped in 0:05:38.279 --> 0:05:40.720 their training account on ft X, and then they had 0:05:40.760 --> 0:05:44.919 to get capital infusion for from their parent group DCG. 0:05:45.360 --> 0:05:48.480 So we're expecting to see more companies coming out to 0:05:48.600 --> 0:05:52.039 this close UH the impact, and we know from the 0:05:52.080 --> 0:05:56.920 bankruptcy foulding itself, at least for Alameda, there's a hundred 0:05:57.120 --> 0:06:01.400 thousand creditors listed and their library is UH is at 0:06:01.480 --> 0:06:04.799 least to be over ten billion dollars. So the size 0:06:04.839 --> 0:06:07.880 and scope should not be understated. It is the biggest 0:06:07.880 --> 0:06:14.400 bankruptcy we're seeing this year. Extraordinary really and therefore the 0:06:14.440 --> 0:06:17.960 full from grace of Sam Batman freed himself, there will 0:06:18.000 --> 0:06:21.640 be movies written, that will be books. Of course, the 0:06:21.680 --> 0:06:25.240 investigations that now continue into him and into what indeed 0:06:25.360 --> 0:06:28.359 has occurred. Is that going to be happening in the 0:06:28.440 --> 0:06:31.160 same time frame as we do understand who the creditors are, 0:06:31.200 --> 0:06:33.080 where do you think the sort of the books are 0:06:33.080 --> 0:06:37.640 going to stop dropping? So for investigations usually they're lagging behind. 0:06:37.640 --> 0:06:41.800 But we do know that US regulators are investigating them. 0:06:41.880 --> 0:06:46.440 Whether the conclusion will come out soon, that's uncertain. And 0:06:46.600 --> 0:06:50.120 from UM and then a same bankman free himself is 0:06:50.160 --> 0:06:54.880 also being investigated by the SEC as we reported yesterday. UM, 0:06:55.040 --> 0:06:58.159 so we're going to see UM a lot of angry 0:06:58.440 --> 0:07:01.360 customers and as a result of out of angry regulators 0:07:01.400 --> 0:07:04.479 all over the world as well. Just looking at the 0:07:04.560 --> 0:07:07.640 implications for this event. As many say, the lawyers are 0:07:07.640 --> 0:07:09.640 really the only people that win in these scenarios. When 0:07:09.640 --> 0:07:12.080 you've had more than five million customers, that's going to 0:07:12.120 --> 0:07:14.880 be torturous process of unfolding this. How many people are 0:07:14.880 --> 0:07:17.840 telling you at the moment that there are further counterparties 0:07:17.880 --> 0:07:20.240 to go, that there is further We've already heard from 0:07:20.240 --> 0:07:22.560 the sequoias of this world, for example, marking down there 0:07:23.280 --> 0:07:26.200 their value the overall holding to zero. We've already seen 0:07:26.240 --> 0:07:30.480 what SoftBank's implication was. Who we worried about? Are we were? 0:07:30.800 --> 0:07:35.000 You mentioned Genesis for example. UM. So it is still 0:07:35.040 --> 0:07:38.040 too early to say who's going to be, which company 0:07:38.080 --> 0:07:41.400 is going to be the next one tool far completely um, 0:07:41.480 --> 0:07:43.760 but I think there's one point that we should be 0:07:43.920 --> 0:07:47.440 hopefully um more hopeful about for the industry, which is 0:07:47.800 --> 0:07:51.240 um comparing to the event in April when the industry 0:07:51.240 --> 0:07:54.840 has a huge leverage event are from the terror collapse. 0:07:55.320 --> 0:07:59.560 The cryptal industry today is um much smaller than back then, 0:08:00.120 --> 0:08:03.680 and then a lot of the lenders have already delivered. UM. 0:08:03.720 --> 0:08:06.520 So this is not not a good news. It is 0:08:06.560 --> 0:08:08.680 a one to a punch. But at the same time, 0:08:08.720 --> 0:08:13.040 the industry is already downside significantly from the beginning of 0:08:13.080 --> 0:08:17.640 the year. Lunar Voyagers, Celsius ft X. I'm sure for 0:08:17.680 --> 0:08:20.720 many they hope that there's some calming after that. Ang me, 0:08:20.760 --> 0:08:31.480 thank hers so much. Let's talk about Twitter suspending. It 0:08:31.560 --> 0:08:34.760 is a dollar subscription program that was launched just earlier 0:08:34.760 --> 0:08:37.040 this week that in an effort to combat a growing 0:08:37.080 --> 0:08:41.160 problem of users, of course impersonating major brands, maybe major 0:08:41.200 --> 0:08:43.560 people as well. It's all according to people familiar with 0:08:43.559 --> 0:08:44.920 the move at the moment, and I'm pleased to stay 0:08:44.960 --> 0:08:48.800 across it all and rather exhausted. Is Alex Barrinka. Thank 0:08:48.840 --> 0:08:50.880 you so much for joining us for a few moments, Alex, 0:08:50.920 --> 0:08:53.480 and just talk to us at the moment about what 0:08:53.600 --> 0:08:55.720 seems to be the u turns that are going on. 0:08:56.320 --> 0:08:58.760 Is this sort of a startup culture once again with 0:08:58.840 --> 0:09:01.360 the CEO just throwing things against the world is single sticks. 0:09:02.440 --> 0:09:03.960 I think my neck and maybe a lot of others 0:09:04.000 --> 0:09:05.880 are hurting with all the whip blash we've seen already 0:09:05.880 --> 0:09:07.640 this week, in the first week that Elon Musk has 0:09:07.640 --> 0:09:10.160 been at the helm of this business. This subscription move 0:09:10.360 --> 0:09:12.560 is one of those things they rolled out, this idea, 0:09:12.640 --> 0:09:15.320 this eight dollar subscription to get more users. Having this 0:09:15.920 --> 0:09:20.239 an infamous blue check um that used to signify veracity 0:09:20.320 --> 0:09:22.880 of an account and now has been impersonated by the 0:09:22.920 --> 0:09:25.920 likes of folks pretending to be drug maker Eli Lily 0:09:26.400 --> 0:09:30.400 saying insulin is now free. It's not um to government 0:09:30.760 --> 0:09:33.880 accounts of governments and politicians, so kind of a big 0:09:33.960 --> 0:09:37.719 uproar here because um, it all plays into the kind 0:09:37.720 --> 0:09:41.360 of proliferation of misinformation that we've seen on the platform 0:09:41.360 --> 0:09:44.480 before that in a free Elon Musk world, Twitter really 0:09:44.520 --> 0:09:47.400 tried to lock down on but in just five business 0:09:47.480 --> 0:09:51.439 days time, it seems like, um, the misinformation, whether it's 0:09:51.679 --> 0:09:54.960 ingest or more serious, has started to really play a 0:09:55.040 --> 0:09:57.360 bigger role on that platform. And then let's took us 0:09:57.360 --> 0:10:01.400 through Actually the irony of this per aferation of businesses 0:10:01.400 --> 0:10:04.360 that aren't actually those businesses getting these tacks is because 0:10:04.600 --> 0:10:08.200 Elon Musk himself wanted to move away from an advertising 0:10:08.240 --> 0:10:10.840 model because he was less. He was more concerned about 0:10:10.840 --> 0:10:13.640 those businesses not advertising because they're worried about the fake 0:10:13.679 --> 0:10:16.360 news factor and turning to a subscription model. But he's 0:10:16.400 --> 0:10:18.600 also been talking about other things within the business model, 0:10:18.640 --> 0:10:22.720 maybe becoming a checking account provider. I mean, what are 0:10:22.760 --> 0:10:26.400 we hearing from this man in the leadership levels right 0:10:26.440 --> 0:10:29.920 now about the direction of travel for the business. Yeah, sources, 0:10:29.920 --> 0:10:32.959 I've told um Bloomberg that they're looking for these fifty 0:10:33.400 --> 0:10:38.400 revenue to come from subscriptions. Elon Musk, remember came from PayPal. Um. 0:10:38.480 --> 0:10:42.240 He has talked about payments could you send money to people. 0:10:42.280 --> 0:10:45.440 Could we give everyone ten dollars to start having people 0:10:45.520 --> 0:10:48.760 send money to other people via the platform. So it 0:10:48.840 --> 0:10:52.040 seems like they're pushing some of these ideas really quickly. Um, 0:10:52.080 --> 0:10:54.920 it seems like they're potentially pushing some of these ideas 0:10:54.960 --> 0:10:57.640 before they thought through all of the implications, with the 0:10:58.160 --> 0:11:01.160 with the blue check verification, the subscription issue being the 0:11:01.280 --> 0:11:04.120 lead one. Now I want to underpin just how important 0:11:04.200 --> 0:11:07.280 this is for Elon Musk to figure out how to 0:11:07.320 --> 0:11:09.080 bring in more money and get this right, he told 0:11:09.120 --> 0:11:12.199 employees in the past twenty four hours. He threw out 0:11:12.200 --> 0:11:14.480 the word bankruptcy. If we don't figure out how to 0:11:14.480 --> 0:11:17.360 make subscriptions work, the company could be in dire straits 0:11:17.360 --> 0:11:20.480 from a revenue perspective. So lots of pressure to figure 0:11:20.480 --> 0:11:22.839 out what is the thing. But it seems like kind 0:11:22.840 --> 0:11:25.120 of the darts they're throwing at the board really quickly 0:11:25.160 --> 0:11:27.760 this past week are not landing in a way that's 0:11:27.840 --> 0:11:30.920 keeping Twitter a place that people and brands and governments 0:11:31.000 --> 0:11:35.000 want to spend their time. Alex, it's in a motive 0:11:35.040 --> 0:11:38.520 and a difficult question. But when I'm looking at Pommy Elson, 0:11:38.600 --> 0:11:41.600 our opinion writer over in London, who's saying that basically 0:11:41.640 --> 0:11:44.080 we might be watching two to implode in real time, 0:11:44.160 --> 0:11:46.880 and that some are kind of debating as to whether 0:11:46.920 --> 0:11:50.240 he's purposely running this business into the ground. How many 0:11:50.280 --> 0:11:53.440 people are sort of echoing those concerns. If you spend 0:11:53.520 --> 0:11:56.280 time on Twitter, you've seen that question posed in the 0:11:56.320 --> 0:12:01.319 context of Okay, he remember he is very confidently talking 0:12:01.360 --> 0:12:04.800 about how he's going to change the platform and reignite 0:12:04.800 --> 0:12:07.559 freef speech at the HELM. But it was only weeks 0:12:07.559 --> 0:12:09.240 ago that he was saying he did not want to 0:12:09.280 --> 0:12:12.040 own this asset at So when you think about the 0:12:12.200 --> 0:12:14.600 thirteen billion in debt that this company now has from 0:12:14.600 --> 0:12:18.280 being taken private, the thirty seven hundred employees were fired 0:12:18.320 --> 0:12:21.720 who are now getting severance paid out, UM, throwing around 0:12:21.720 --> 0:12:24.800 that idea of bankruptcy is something that, you know, uh, 0:12:25.000 --> 0:12:27.640 could be a knock on of of what could he do. 0:12:27.880 --> 0:12:31.559 I will remind you that Elon Musk with Tesla and SpaceX. 0:12:31.760 --> 0:12:34.720 In the context of those companies, he's also thrown out 0:12:34.760 --> 0:12:37.840 that b word of bankruptcy. Ellen has proven himself not 0:12:37.880 --> 0:12:41.319 to be the typical CEO who maybe would avoid that 0:12:41.600 --> 0:12:45.360 um for for fear of stoking kind of UM bad 0:12:45.400 --> 0:12:48.320 bad fears within a company, but he has used this 0:12:48.440 --> 0:12:51.439 language before, so with him, perhaps there is a little 0:12:51.440 --> 0:12:54.160 bit of more of a wait and see if this 0:12:54.200 --> 0:12:56.680 is something that he truly believes, um that the company 0:12:56.720 --> 0:12:59.480 has head in that direction quickly, or if it is, 0:12:59.600 --> 0:13:02.280 maybe it's motivation tactic or something of that sort of 0:13:02.280 --> 0:13:04.760 internally to get folks to figure out an ex place 0:13:04.800 --> 0:13:07.600 to make some more money and make them do that 0:13:07.760 --> 0:13:10.120 from the office with no free food, which is just 0:13:10.160 --> 0:13:12.440 a minor detail in what is a very complex story. 0:13:12.520 --> 0:13:14.560 Alex Sperenca, we thank you so much for their latest 0:13:14.600 --> 0:13:17.959 and let's now continue this conversation from an e commerce 0:13:17.960 --> 0:13:20.480 perspective as well from a trust perspective. We've got a 0:13:20.480 --> 0:13:23.559 real expert for you, Rachel Typograph, CEO and founder of 0:13:23.640 --> 0:13:27.200 make map. It's a global ecommerce enabling and analytics platform 0:13:27.400 --> 0:13:30.320 for multi channel brands, huge brands that depend on you 0:13:30.360 --> 0:13:33.319 to understand where should I be putting my money to 0:13:33.360 --> 0:13:37.360 work when it comes to spending to advertising to social media? 0:13:38.240 --> 0:13:39.840 What are you seeing in terms of media traffic at 0:13:39.880 --> 0:13:41.920 the moment. What are your numbers telling you about how 0:13:41.960 --> 0:13:44.880 fearful they are of Twitter or how much it's useful 0:13:44.920 --> 0:13:47.800 for them at the moment. Yeah, absolutely. I mean right now, 0:13:47.840 --> 0:13:50.680 I feel like we're living a movie about social media, 0:13:50.720 --> 0:13:53.440 and except this time it's a different platform. In the 0:13:53.520 --> 0:13:57.000 last thirty days, we've seen a seventy five decline in 0:13:57.040 --> 0:14:03.199 Twitter traffic, seventy five of which of that decline happened 0:14:03.240 --> 0:14:07.520 since October, which is when Ellen took ownership over Twitter. 0:14:08.240 --> 0:14:11.160 And just talk through that traffic drop, what is that meaning? 0:14:11.200 --> 0:14:14.320 That is meaning that you know, the companies that you're 0:14:14.320 --> 0:14:15.880 talking to, you just don't want to be anywhere near 0:14:15.920 --> 0:14:18.120 affiliated they they're not posting on it, they're not putting 0:14:18.120 --> 0:14:20.160 out their products center or it's more people on interacting 0:14:20.160 --> 0:14:22.000 with them because they're so distracted by other things that 0:14:22.040 --> 0:14:24.720 are on the platform right now. Yeah, So at Nickmack, 0:14:24.960 --> 0:14:28.640 we get trafficked through national digital media across all major 0:14:28.720 --> 0:14:32.240 social platforms, and so when we see the client in traffic, 0:14:32.480 --> 0:14:36.160 it means that ad spend is being paused. The thing 0:14:36.160 --> 0:14:38.680 about advertising is that it's very easy to turn on 0:14:38.800 --> 0:14:42.120 and off, and so while things are so volatile right now, 0:14:42.560 --> 0:14:45.880 it's better for advertisers to take a back seat then 0:14:45.920 --> 0:14:49.520 expose their brand reputation. I was just speaking with the 0:14:49.680 --> 0:14:51.920 m X CEO Steve Square yesterday and he was talking 0:14:51.960 --> 0:14:53.880 about how where they put their money to work on 0:14:53.880 --> 0:14:56.760 a marketing perspective has to reflect their values. And this 0:14:56.800 --> 0:14:58.520 is what a lot of companies are doing. Why General 0:14:58.520 --> 0:15:01.120 Mills are pulling back on Twitter. Why we've heard gm 0:15:01.120 --> 0:15:03.800 and do the same. Some thought about competition there too, 0:15:03.840 --> 0:15:07.080 But I'm interested is this is also an environment, a 0:15:07.680 --> 0:15:11.280 recessionary environment and slowing down economically environment where people might 0:15:11.280 --> 0:15:14.680 be pressing pause everywhere? Is that the case or is 0:15:14.720 --> 0:15:18.080 this really idiosyncratic? It's actually not the case. Right now, 0:15:18.360 --> 0:15:21.360 it's November and December Q four, this is when six 0:15:21.920 --> 0:15:25.400 of media spend normally happens. So we're seeing spend happened 0:15:25.440 --> 0:15:29.280 on Meta, on snap, on Pinterest, on TikTok, on Google. 0:15:29.680 --> 0:15:34.080 People are spending, but spend is now being reallocated outside 0:15:34.120 --> 0:15:36.680 of Twitter into these other channels. And why it's benefiting 0:15:36.680 --> 0:15:38.280 the most. I have a feeling I can guess and 0:15:38.400 --> 0:15:41.880 you could probably guess. But in the last seven days 0:15:42.000 --> 0:15:46.520 we've seen a increase in TikTok traffic. And is that 0:15:46.840 --> 0:15:49.120 I mean today just me, I was on TikTok and 0:15:49.240 --> 0:15:52.720 suddenly I found myself basically perusing some at leisure brand 0:15:52.720 --> 0:15:55.000 because it's Singles Day and then just I didn't even 0:15:55.000 --> 0:15:58.160 realize I was doing it native within that overall app 0:15:58.200 --> 0:16:00.120 until I clicked out of it, and the naturally by 0:16:00.160 --> 0:16:02.160 what is going to buy? But I'm interested is to 0:16:02.480 --> 0:16:05.000 is it because we're in that particular months and or 0:16:05.080 --> 0:16:09.520 is it actually a different reason. No, TikTok is inherently personalized. 0:16:09.640 --> 0:16:12.560 It's probably scares you how well the appnos you, and 0:16:12.640 --> 0:16:15.920 so when you open TikTok right there and then they 0:16:15.960 --> 0:16:19.280 have a high consideration knowing what you want to buy. 0:16:19.720 --> 0:16:23.240 We actually see amazing conversion on that platform, and unlike 0:16:23.240 --> 0:16:26.520 other social platforms, you can get huge bang for your 0:16:26.560 --> 0:16:30.440 buck organically or being influencers. Most of the other social 0:16:30.440 --> 0:16:33.880 platforms you have to pay to play. And a lot 0:16:33.880 --> 0:16:36.080 of people have been sort of wringing their hands about 0:16:37.080 --> 0:16:39.040 the noise that has been built into the system. Many 0:16:39.200 --> 0:16:41.360 lay blame a lot of CEOs would like to lay 0:16:41.360 --> 0:16:43.720 blame Apple's feed as to how perhaps some of the 0:16:44.360 --> 0:16:47.720 direct targeting has become less direct, less efficient in that respect, 0:16:47.760 --> 0:16:50.800 and probably harder some of your clients. I'm interested in general, 0:16:50.880 --> 0:16:54.000 like are you seeing at this moment, what are your 0:16:54.000 --> 0:16:57.040 clients wanting to do. Are they wanting to have more effective, 0:16:57.040 --> 0:17:00.040 efficient use of social media? Are they backing away entirely? What? 0:17:00.040 --> 0:17:01.960 What are they saying to you? Yeah? I mean changes 0:17:01.960 --> 0:17:05.760 in iOS fourteen have really undone brand media as we 0:17:05.840 --> 0:17:09.200 know it. Platforms like Meta used to be an amazing 0:17:09.240 --> 0:17:12.720 conversion channel, but ever since the changes that Apple made 0:17:13.080 --> 0:17:15.679 all of a sudden, you're seeing spend shift out of 0:17:15.960 --> 0:17:19.760 national brand channels into environments like retail media. If you 0:17:19.760 --> 0:17:24.879 look at Amazon's most recent earnings advertising through quarter over quarter, 0:17:25.320 --> 0:17:28.720 there's really strong R o I within those environments as 0:17:28.720 --> 0:17:31.120 well as brand safety. You don't have to worry about 0:17:31.119 --> 0:17:34.480 issues like you're experiencing in Twitter in an environment like Amazon. Okay, 0:17:34.520 --> 0:17:36.479 and I love you, I love that. You bring us 0:17:36.480 --> 0:17:39.320 back to the brand safety element. Is there anything in 0:17:39.320 --> 0:17:42.159 the hair and the now that will change the centrol? 0:17:42.240 --> 0:17:44.639 Do you thing full Twitter traffic? Yeah? This is not 0:17:44.720 --> 0:17:47.200 the first time of moment like this happened. In two 0:17:47.200 --> 0:17:51.000 thousand seventeen, brands paused on YouTube because of hate speech. 0:17:51.440 --> 0:17:55.520 In summer, brands pause on Facebook because of hate speech. 0:17:56.359 --> 0:18:00.520 Both of those platforms inevitably regain the trust of average tisers. 0:18:00.840 --> 0:18:04.160 But what it took was the corporate executive team going 0:18:04.200 --> 0:18:08.200 from conference room to conference room and showing that they 0:18:08.240 --> 0:18:12.120 can stabilize their platform and deliver on their words. So 0:18:12.240 --> 0:18:14.280 I don't think this has to be a forever thing 0:18:14.359 --> 0:18:18.240 for Twitter, but what the industry needs to see is stability, 0:18:18.480 --> 0:18:21.879 and they need to see action not words. Well, we 0:18:21.960 --> 0:18:23.640 thank you for your words. We thank you for coming 0:18:23.640 --> 0:18:25.560 in the studio as well. Such a great voice for 0:18:25.640 --> 0:18:28.959 Rachel topographic course, founder and CEO of make Mac. Meanwhile, 0:18:29.000 --> 0:18:30.520 we're going to be right back with more on bloom 0:18:30.520 --> 0:18:32.359 Bag technology after the spring. We're going to be talking 0:18:32.680 --> 0:18:35.800 so much more about the layoffs in particular across the sector. 0:18:35.840 --> 0:18:48.480 Stay with us as a Bloomberg. Soft Bank founder, Mass 0:18:48.520 --> 0:18:51.920 Yoshi's son says he will no longer speak at earnings presentations. 0:18:52.160 --> 0:18:55.040 He's not for decades. That's after the company's Vision Fund. 0:18:55.080 --> 0:18:57.119 Of course, the arm that is doing a lot of 0:18:57.160 --> 0:19:01.000 investing had a seven point two billion dollar quarterly loss 0:19:01.240 --> 0:19:03.040 due to the right downs on its tech investments. Now, 0:19:03.040 --> 0:19:05.720 soft Bank, which for years was the world's most aggressive 0:19:05.720 --> 0:19:09.320 tech investor, has virtually halted new investments and focused instead 0:19:09.600 --> 0:19:13.040 on his balancie. Meanwhile, Ali Baba decided not to disclose 0:19:13.080 --> 0:19:16.400 full sales results for its signature Singles Day shopping festival, 0:19:16.560 --> 0:19:18.760 and that's for the first time ever. Alabama said in 0:19:18.760 --> 0:19:21.560 a statement that the gross merchandise value was in line 0:19:21.640 --> 0:19:24.960 with the last year's g m V performance, despite macro 0:19:25.080 --> 0:19:29.440 challenges and COVID related impact. But some forecasts say, look, 0:19:29.440 --> 0:19:32.080 the figure could suffer a decline that's unprecedented in the 0:19:32.119 --> 0:19:43.320 events fourteen year history. I think this is the first 0:19:43.400 --> 0:19:46.240 of many cuts that we're going to see, not only 0:19:46.240 --> 0:19:49.320 for these companies. Okay, but the company is written large. 0:19:49.640 --> 0:19:56.040 We've seen over hiring, over inventorying, over ordering, and then 0:19:56.040 --> 0:19:58.080 I'll has to get wrong out of the system. These 0:19:58.119 --> 0:20:01.840 companies are starting to take action right Finally the natal party. 0:20:03.760 --> 0:20:06.160 This is Bloomberg Technology and Caroline Hide in New York. 0:20:06.200 --> 0:20:09.000 You were just hearing from Mike Wilson Morganestani's chief U 0:20:09.080 --> 0:20:12.159 security strategist about the current landscape of tech layoffs and 0:20:12.600 --> 0:20:14.960 stick into that a little bit more, plus much other 0:20:15.040 --> 0:20:18.080 conversation topics to be having with the Activate founder and CEO. 0:20:18.160 --> 0:20:22.000 Michael Wolfe, management consultant, previously CEO of President of MTV. 0:20:22.080 --> 0:20:23.600 He was also on the boards of companies such as 0:20:23.680 --> 0:20:26.680 Yahoo for example, you're a man who understands what it's 0:20:26.680 --> 0:20:29.840 like to run businesses have to slim down businesses to 0:20:29.880 --> 0:20:32.520 see a restructuring. What do you make of not only 0:20:32.640 --> 0:20:35.359 Disney now saying that they're going to be cutting their jobs, freezing, 0:20:35.440 --> 0:20:39.159 hiring only essential travel. We had from Meta the Artists 0:20:39.160 --> 0:20:42.280 formerly known as Facebook, but Meta eleven thousand jobs to go. 0:20:42.720 --> 0:20:45.000 These are significant cuts. There are a lot of other 0:20:45.000 --> 0:20:48.239 companies Striped Lived. That's so many of these companies are 0:20:48.320 --> 0:20:50.320 using this moment. But if you look at the numbers, 0:20:50.800 --> 0:20:53.920 it's in a lot of ways they overshot. They expected 0:20:53.960 --> 0:20:57.360 that the growth that they experienced during the pandemic would 0:20:57.400 --> 0:21:01.119 be sustained. So if you look at but happened with Meta, 0:21:01.240 --> 0:21:05.240 Meta two thousand seventeen had twenty five thousand employees. Two 0:21:05.240 --> 0:21:09.680 thousand nineteen, they had fifty thousand after the cuts, After 0:21:09.720 --> 0:21:12.360 the eleven thousand cuts, they're still gonna be at seventy 0:21:12.359 --> 0:21:16.000 five thousand employees. So this is this is just going 0:21:16.040 --> 0:21:19.760 back to yesterday a little bit, and and and it's 0:21:19.800 --> 0:21:21.879