Speaker 1: From the heart of where innovation, money and power COLLI
Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with
Speaker 1: Emily Jay. I'm Emily Check in San Francisco, and this
Speaker 1: is Bloomberg Technology coming up in the next hour. Meta
Speaker 1: takes a beating as the making of the metaverse gets
Speaker 1: more and more expensive. It is the second straight quarter
Speaker 1: of yearly revenue declines. Ever, but there are some bright
Speaker 1: spots for Facebook and Instagram we'll discuss. Plus. Elon Musk
Speaker 1: is in the building at the Twitter office where on
Speaker 1: Friday he will address the staff. He reported with plans
Speaker 1: to cut by more details on a Bloomberg scoop in
Speaker 1: a moment, and it is one of the biggest ipeos
Speaker 1: of the year. The CEO of Intel self driving startup
Speaker 1: Mobili tells us about the law quote ahead all of
Speaker 1: that in a moment, but first I want to dig
Speaker 1: a little deeper now into Meta's results with Jasmine Edinburgh,
Speaker 1: principal analysts at Insider Intelligence. Jasmine, of course focusing on
Speaker 1: on the forecast and also profit. Quarterly profit being cut
Speaker 1: basically in half. I mean that's a big number for
Speaker 1: a company as big as Meta. Yeah, and we're also
Speaker 1: coming up on Meta's one year anniversary of the name change,
Speaker 1: and what I would start with is that Meta today
Speaker 1: is a far cry from what Facebook was just one
Speaker 1: year ago. As Facebook, the company was able to generate
Speaker 1: double digit growth every year, revenue growth every year, and
Speaker 1: last year it posted about thirty seven percent revenue growth.
Speaker 1: Now it had two consecutive quarters of revenue declines, and
Speaker 1: an insider intelligence our brand new forecast shows that Meta
Speaker 1: is going to post its first ever year over year
Speaker 1: declar line and worldwide AD revenues for the full year
Speaker 1: two as well. Now, let's talk about the bets that
Speaker 1: Meta is making. The two big ones, the shift to
Speaker 1: reels and also the metaverse. Is there any evidence that
Speaker 1: either of these are actually paying off well? Zuckerberg's bet
Speaker 1: on the metaverse is clearly jeopardizing the short term health
Speaker 1: of its business. I will say that there is, you know,
Speaker 1: some business interest in the metaverse. We have seen some
Speaker 1: activations from some businesses, but those activations are also coming
Speaker 1: out of experimental budgets for the first part, for the
Speaker 1: most part, which means that they're also potentially able to
Speaker 1: be cut um if these macro ect economic conditions weaken. Now,
Speaker 1: Reels is where Facebook and Instagram should really be focusing
Speaker 1: on right now. It is where the competition within social
Speaker 1: media remains, and Reels is still lagging very far behind
Speaker 1: TikTok Um, and it needs to catch up in order
Speaker 1: to be able to continue to grow its ad business. Now,
Speaker 1: let's talk about the broader changes happening to the ad business.
Speaker 1: You've obviously got met at hitting back at Apple for
Speaker 1: the changes that Apple is making that are impacting not
Speaker 1: just Meta but other social media companies. How much bigger
Speaker 1: of a cut is Apple going to get? And how
Speaker 1: much smaller of a cut is Facebook or Meta going
Speaker 1: to get? And what does that mean to you over
Speaker 1: the longer term? Yeah, I mean the effects of Apple's
Speaker 1: privacy changes continue to plague all of the social platforms.
Speaker 1: We have seen that in multiple earnings that have already
Speaker 1: come out. You know, Apple in some ways maybe benefiting
Speaker 1: it's also launched its own ad business um. But you know,
Speaker 1: these companies really need to work to develop and deploy
Speaker 1: effective solutions for ad attribution if they want to keep
Speaker 1: up and continue to grow their businesses in this new environment.
Speaker 1: Twitter was supposed to report earnings today, didn't happen That
Speaker 1: was at least the estimated date. Of course, now we
Speaker 1: have Elon Usk going into Twitter today with the kitchen
Speaker 1: sink a very powerful metaphor there there are we're reporting that, uh,
Speaker 1: you know, he's planning to cut of Twitter's work force.
Speaker 1: What do you imagine happens on Friday? Well, Muska has
Speaker 1: every reason to want to close this deal by Friday.
Speaker 1: If it doesn't close, of course, this this case goes
Speaker 1: to court, and it's likely that that Twitter will win
Speaker 1: anyway and Musk will be able to avoid some of
Speaker 1: the reputational damage that might ensue if if the case
Speaker 1: actually goes to trial. Now a must own Twitter is
Speaker 1: likely going to result in even more chaos. We already
Speaker 1: know that the employee morale is low. Some employees have left,
Speaker 1: Others are really concerned about massive layoffs, and that is
Speaker 1: a valid concern now in terms of how that might
Speaker 1: affect its business. You know, even if these massive cuts
Speaker 1: don't take place, or don't take place immediately, just the
Speaker 1: fact that this idea is being floated around by muff
Speaker 1: It's might be enough to spook some advertisers as well.
Speaker 1: You know, advertisers want to spend their ad dollars on
Speaker 1: platforms that they view as stable and right now that
Speaker 1: certainly isn't Twitter. What's your sense of what these you know,
Speaker 1: potentially people at Twitter do that he seems to think
Speaker 1: are expendable and if the platform can be run with
Speaker 1: you know, the necessary oversight with two thousand people. So
Speaker 1: I think where these cuts take place, if they do
Speaker 1: take place, will give us a really good indication of
Speaker 1: what Musk intends to do with the platform. If, for example,
Speaker 1: he reduces head counts significantly in the ads division at Twitter,
Speaker 1: it's an indication that he may be making good on
Speaker 1: his promise to reduce Twitter's reliance on advertising. He could
Speaker 1: potentially cut in the content moderation division, which could prove
Speaker 1: or show that he intends to loosen some of those
Speaker 1: content moderation guard rails, which is also something that he
Speaker 1: has been really vocal about. Okay, So given all of these,
Speaker 1: massive's got major evolutions changes happening a Facebook. You've got,
Speaker 1: potentially on Friday, Twitter becoming a private company. You've got
Speaker 1: Apple moving in and trying to take a bigger cut
Speaker 1: of social media ad revenue. You mentioned how different Meta
Speaker 1: looks today than it did a year ago. How different
Speaker 1: does the social media industry look a year from now
Speaker 1: than it looks today different. I actually believe that the
Speaker 1: time is right for some more disruption in the social
Speaker 1: media industry. I mean, TikTok was the biggest destructor to
Speaker 1: UM usage and to to revenue in the social media
Speaker 1: landscape for many, many years. But we're seeing now that
Speaker 1: there are some other social apps that are starting to
Speaker 1: bubble up and capture the attention of the coveted gen
Speaker 1: Z audience. And I believe that we'll start to see
Speaker 1: even more of that in three and UM. Have these
Speaker 1: established social platforms really continue to to scramble to keep
Speaker 1: their audiences and continue to grow their businesses? I wonder
Speaker 1: what it means for Snap. We heard from Snap CEO
Speaker 1: Evan Spiegel at the Wall Street Journal Technology Conference. He
Speaker 1: blasted the metaverse, saying something along the lines of the
Speaker 1: last thing I want to do when I get home
Speaker 1: from work after a long day is live inside a computer. Um.
Speaker 1: You know there are two questions in there, A what
Speaker 1: does this mean for Snap? And be this this? You know? Uh,
Speaker 1: you know, infatuation that some brands might have with the
Speaker 1: metaverse just just dry up, especially as we go into
Speaker 1: a pronounced economic downturn. Yeah, so Snap has positioned itself
Speaker 1: as anti metaverse for for quite some time now. It's
Speaker 1: also been really susceptible to a lot of the challenges
Speaker 1: that are plaguing all of the social platforms. We saw
Speaker 1: that in its Q through Q three earnings just last week.
Speaker 1: Part of the problem is that Snap is considered a
Speaker 1: less essential platform than say, Meta, although Meta is experiencing
Speaker 1: cuts as well. Um And, but it's easy for advertisers
Speaker 1: to justify pulling ads and and pulling budget from Snap.
Speaker 1: And it certainly doesn't help that, you know, it has
Speaker 1: staked its future on augmented reality, which is an even
Speaker 1: more experimental format for a lot of advertisers. Snap does
Speaker 1: have something um that Meta and Twitter have really struggled
Speaker 1: to articulate, and that is a long term vision. Um.
Speaker 1: But having a long term vision is not really a
Speaker 1: way to help it in the short term. And Snap
Speaker 1: really has to turn things around now if it wants
Speaker 1: to make its vision a reality. Do you think augmented
Speaker 1: reality is more likely? Are you more optimistic about the
Speaker 1: future of augmented reality than virtual reality? So? I think
Speaker 1: augmented reality holds a lot of long term promise, especially
Speaker 1: among the audience that is using Snapchat. UM. We are
Speaker 1: already seeing young users communicate with each other UM and
Speaker 1: entertain each other through a our filters. We are seeing
Speaker 1: some brands and some consumers leaning to a R as
Speaker 1: a shopping tool, and I believe that that will continue
Speaker 1: to grow. I don't necessarily believe it's going to reach
Speaker 1: mass adoption, but I do think that it's becoming more
Speaker 1: of a utility and will continue to do so over
Speaker 1: the next couple of years. All right, Jasmine Emberg Insider Intelligence,
Speaker 1: Thank you, as always Jasmine for your insights here. Obviously
Speaker 1: lots to continue to watch. Questions are looming about Spotify's
Speaker 1: profitability after its earnings report subscribe to growth topping estimates.
Speaker 1: But it's another one of the many tech companies being
Speaker 1: hit by a slowdown and ad spent sending shares down
Speaker 1: more than nine percent. Bloomberg's Ashuley Carmen cover Spotify for US. So,
Speaker 1: actually we're talking about Twitter and metas struggles Snap as well.
Speaker 1: Their struggles. UM, given the ad crisis earlier, how is
Speaker 1: that impacting Spotify? Yeah, spot f I said that actually,
Speaker 1: it's AD revenue also grew this quarter, but more slowly.
Speaker 1: Than an anticipated and it's blaming that on the broader
Speaker 1: macroeconomic issues that we're seeing. So what kind of troubleshooting
Speaker 1: are they doing? What are the solutions? It's tricky, I mean,
Speaker 1: so daniel A, the CEO, says that, and this is true,
Speaker 1: ad revenue doesn't represent a huge portion of their business.
Speaker 1: They're obviously mostly a subscriber based business. So obviously they
Speaker 1: want to keep growing those premium subscribers, which they also
Speaker 1: did this quarter, beating analysts expectations. But at the same time,
Speaker 1: they really need to keep doubling down on that podcast
Speaker 1: business because that's where they say they're really benefiting from
Speaker 1: this advertiser money. Apple seems to be the enemy and
Speaker 1: the conversations about social media advertising, and I wonder where
Speaker 1: where does Apple Music, Spotify's main competitor, fit in. Yeah,
Speaker 1: there's been a couple of interesting developments that are Apple
Speaker 1: related this quarter or I guess for this past quarter
Speaker 1: in Apple world. So first off, Apple Music raised his
Speaker 1: prices this week, and of course daniel Luck was asked
Speaker 1: about that on the earnings call, and he says, they're
Speaker 1: going to have conversations about raising their prices. In turn,
Speaker 1: they just have to go to their label partners and
Speaker 1: have those conversations. And then also the Spotify came out
Speaker 1: kind of They've always been talking about Apple and antitrust
Speaker 1: and kind of the app store fees that they have
Speaker 1: to pay, And recently in September, Spotify launched audio books
Speaker 1: on the platform. And originally you could, I mean it
Speaker 1: was a bit of a pain, but you could buy
Speaker 1: audiobooks through the app. You would get the price and
Speaker 1: the purchase link email to you, so in that way
Speaker 1: it was kind of going around Apple's app store fees.
Speaker 1: But now on iOS you can't purchase them at all.
Speaker 1: So Spotify came out saying, you know, they're really unhappy
Speaker 1: with this experience. And on Google you can still kind
Speaker 1: of have that odd emailed system, but at least you
Speaker 1: can buy audio books. What is next for podcasts and
Speaker 1: audio streaming? You know, I think there are still some
Speaker 1: questions that remain about just how big the podcasting advertising
Speaker 1: market really is. Yeah, so we've seen a lot of
Speaker 1: these big players like I heeart Media and Spotify and
Speaker 1: Cumulus really try to bolster their podcast businesses and focus
Speaker 1: on programmatic advertising. So really bringing in these big brands,
Speaker 1: the Coca Cola is the Geico's and get them to
Speaker 1: spend in podcasting, an industry we typically think of as
Speaker 1: like the cast firm, mattresses, and the direct response advertisers.
Speaker 1: So that's really what these big companies are focusing on,
Speaker 1: is bringing them into the mix, even as the economy
Speaker 1: maybe is taken a downturn. Can you give us the
Speaker 1: latest on Daniel K. Moore broadly? I mean, it feels
Speaker 1: like just yesterday he was, you know, making a bid
Speaker 1: for the Arsenal football team, and now his company is
Speaker 1: going through some significant struggles. What has that meant for
Speaker 1: some of his other aspirations? You know, I'm not totally
Speaker 1: sure how it's it's changed his other goals. I will
Speaker 1: say that he doesn't in the earnings call project any
Speaker 1: sort of concern about or any sort of struggles for
Speaker 1: the company. He really sees it as, hey, we've told
Speaker 1: you pursuing podcasting, we're pursuing audiobooks. We need to make
Speaker 1: some necessary investments into those space in order to eventually
Speaker 1: continue to grow and have a better gross margin. So
Speaker 1: he views this as like charting the course. Obviously, investors
Speaker 1: have kind of turned on the company though, all right, Uh, well,
Speaker 1: more to write I'm sure more to the story. Bloomberg's
Speaker 1: actually Carmen, thank you for weighing him coming up our
Speaker 1: conversation with Mobilized CEO and founder on the heels of
Speaker 1: the first day as a public company. That is next.
Speaker 1: This is Bloomberg Intel's Mobile I unit, which developed software
Speaker 1: and self driving technology, just started trading on Wall Street.
Speaker 1: Bloomberg's had Ludlow caught up with Mobilized CEO and founder.
Speaker 1: I'm non Shasha earlier. Take a listen. Our plan is
Speaker 1: to view the spectrum from driving assist to to fully
Speaker 1: autonomous driving, say robotaxis, as a spectrum of solutions. And
Speaker 1: we started with a base solution, which is, you know,
Speaker 1: our our silicon connected to eleven cameras surrounding the car,
Speaker 1: seven long range and four parking cameras. All this information
Speaker 1: is being used for an eye on, you know, hands
Speaker 1: free driving. And then through a modular expansion by adding
Speaker 1: active sensors to create eyes off solutions with expanding operational
Speaker 1: design domain. So for example, you know, you start with
Speaker 1: this camera built at the front facing ladder, you can
Speaker 1: enable eyes off autonomy on highways, add corner radars, you
Speaker 1: can enable lane changes and light traffic. Add imaging radars,
Speaker 1: you can enable lane changes and condense traffic unprotected turns.
Speaker 1: Added tell operation you get a robotaxi. So it creates
Speaker 1: a spectrum of solutions. And we have been already shipping
Speaker 1: this based system. We have already fifty cars already with
Speaker 1: the based system. Right, how critical is China to the
Speaker 1: growth story if your business? Do you see the business
Speaker 1: growing with pace in China which is a really important
Speaker 1: global auto market. Now, wonder when we look at China
Speaker 1: that there were two attractive things. That one is the
Speaker 1: market itself. Now, market share in China has been going
Speaker 1: over over the year substantially, but more importantly, we found
Speaker 1: that China is slightly more take forward uh than than
Speaker 1: the rest of the world. And and we we took
Speaker 1: advantage of putting our latest innovation starting in China, the
Speaker 1: system that I mentioned before with eleven cameras that's called
Speaker 1: Supervision already shipped in China and then generating interest with
Speaker 1: other o e m's Western o ems. And in the
Speaker 1: past five months we started getting significant attraction with the
Speaker 1: six o EM is already designed in to this to
Speaker 1: this basis and called the Supervision going forward from three
Speaker 1: or five. What about doing business going forward? We know
Speaker 1: about the trade restrictions when it comes to technology in China,
Speaker 1: do you see the need to build new partnerships in
Speaker 1: that market? Now we have, we have multiple partnerships in
Speaker 1: that market. We are less concerned about our type of product,
Speaker 1: Like the i Q chip is not a supercomputer. It's
Speaker 1: not programmable. You know you're gonna put it on a
Speaker 1: data center and write any code you like. It's really
Speaker 1: it's really purpose built to sit in the car with
Speaker 1: mobilize the code. So we don't see our chip at
Speaker 1: the forefront of you know, export controls UM. So we
Speaker 1: are focusing on, you know, building a great products, creating partnerships,
Speaker 1: using the tech forward approach to to then migrates to
Speaker 1: to outside of China, and it's it's proving itself quite successfully.
Speaker 1: I'm not you and I have been talking about this
Speaker 1: for years now. Do you really see a business where
Speaker 1: mobile i makes money from true autonomy? When does that happen?
Speaker 1: When does mobili start making money as a service provided
Speaker 1: not just a maker of chips and system on chips.
Speaker 1: I think what has changed in our view in the
Speaker 1: past five years. Let's not change, but more new ones
Speaker 1: is that now when you talk about autonomy, is not
Speaker 1: just robotaxis. Now there are companies competitors of hours that
Speaker 1: are focused only on robotaxis, but we see something much
Speaker 1: more new ones and what I mentioned before, these kind
Speaker 1: of autonomous blades as you go from our base system
Speaker 1: and adding more active sensors. So a robotax is just
Speaker 1: one end of a long spectrum of solutions and we
Speaker 1: are working on it. Means where at the final stages
Speaker 1: of certification and mollegation of our ROBOTAXI. We have about
Speaker 1: ten pocs with public transport operators of next year that
Speaker 1: we made public a few a few months ago. We
Speaker 1: have a fleet of about one hundred vehicles dedicated for
Speaker 1: those pocs and the purpose of those pocs is to
Speaker 1: start building a business model. Business model that makes sense
Speaker 1: for us. We don't want to be CAPEX heavy. We
Speaker 1: want to go forward with this service idea with partners
Speaker 1: where we supply the self driving system or the self
Speaker 1: driving vehicle and our partners will take you. Now we'll
Speaker 1: do the service themselves, could be using our software to
Speaker 1: be licensed to them, but they have the expertise, the
Speaker 1: financial know how of how to manage fleets of vehicles.
Speaker 1: It's not an area that we want to to be
Speaker 1: active in mobili CEO and founder there with Bloomberg's at Ludlow.
Speaker 1: You can catch that full interview at Boomberg dot com.
Speaker 1: Welcome back to boomer Technology, Emily Chain in San Francisco.
Speaker 1: I want to get back to matters. Results are at
Speaker 1: what Low has been listening in to the call at
Speaker 1: what are we hearing? Yeah, there's a lot of explanation
Speaker 1: about why costs and operating expenses are going to be
Speaker 1: higher in the near term before they kind of real
Speaker 1: look at the budget in the future. They're talking about
Speaker 1: dramatically slur slowing the rate of hiring. In the third
Speaker 1: quarter they added about thirty seven people. Despite what we
Speaker 1: heard last month right about Zuckerberg really pushing to cut costs,
Speaker 1: there's going to continue to be infrastructure investments in AI
Speaker 1: why well meta Previously, Facebook has always said it needs
Speaker 1: to invest in AI to improve the algorithms that power
Speaker 1: the core Facebook platform as well as that transition to
Speaker 1: the metaverse. And this one's for you. This jumped out
Speaker 1: and me. I've been blogging about this on the Bloomberg
Speaker 1: Top Live blog, Instagram and WhatsApp now each have two
Speaker 1: billion users, and when that headline hit, the market didn't
Speaker 1: do anything. We're still down more than fift and after hours.
Speaker 1: You remember, right when that was everything. How is Instagram
Speaker 1: going to drive growth in the future, How are we
Speaker 1: going to monetize WhatsApp? I haven't heard anything about that
Speaker 1: in ages and yet Zuckerberg in his prepared remarks kind
Speaker 1: of leads with that. I think it's very telling about
Speaker 1: the story they're trying to tell right now. Indeed, but
Speaker 1: of course a lot happening under the hood. Ad Ludlow,
Speaker 1: thank you. Meantime, Meta criticized Apple over new changes to
Speaker 1: its app store, which takes a cut of social media
Speaker 1: advertising revenue or mark eerment. Of course covers all things
Speaker 1: Apple mark This has been happening for a while, but
Speaker 1: remind us how these changes, you know, what the intention
Speaker 1: of these changes was, and how they're working in practice.
Speaker 1: So two years ago, Apple announced the feature called a
Speaker 1: t T or App Tracking Transparency. And what this does
Speaker 1: is it throws up a pop up two users before
Speaker 1: it'll before the system will allow an application to track
Speaker 1: you for advertising based purposes across different applications and different
Speaker 1: websites and So from Apple's perspective, all this pop up
Speaker 1: does is puts that permission in the hands of the user.
Speaker 1: It sounds pretty simple, but from the perspective of Meta,
Speaker 1: of Snapchat, of Twitter, of other social media platforms, that
Speaker 1: makes their advertising a lot less powerful and makes it
Speaker 1: so advertisers are going to be hang a lot less
Speaker 1: and for Facebook and these companies to make a lot
Speaker 1: less money. And it's interesting to me that Facebook went
Speaker 1: on the offensive yesterday regarding the latest changes to the
Speaker 1: app store rules right ahead of their earnings, which as
Speaker 1: we see right now, are fairly disappointing to Wall Street
Speaker 1: right and investors and such. But from what we understand
Speaker 1: from Meta and from other people we've spoken to, the
Speaker 1: latest string of changes related to Apple wanting a thirty
Speaker 1: percent cut or a commission on boosts, which is a
Speaker 1: type of advertising within Facebook and other platforms, it's not
Speaker 1: really going to have a material impact on Meta at least.
Speaker 1: What's our sense of how much these Apple changes specifically
Speaker 1: are impacting let's say Facebook or Instagram and how much
Speaker 1: Apple is benefiting from these changes. So, from what we've
Speaker 1: seen so far, in terms of a financial standpoint, Apple
Speaker 1: really is not benefiting from these changes. Uh In any way,
Speaker 1: the company is working on its own new advertising push.
Speaker 1: You may have seen in the app store now they've
Speaker 1: added a couple of new ad slots, but that doesn't
Speaker 1: really impact Meta. It wasn't like Meta was previously able
Speaker 1: to advertise within the app store. Apples also going to
Speaker 1: bring advertisements, I'm told to the Maps application. That really doesn't,
Speaker 1: you know, impact Meta either, because Apple is going to
Speaker 1: be the only provider of ads within that platform. Right,
Speaker 1: so Apple is not really benefiting here, but Meta certainly losing.
Speaker 1: I remember a couple of years ago they threw out
Speaker 1: a ten billion dollar estimate related to the impact there.
Speaker 1: Some people said that ten billion dollars actually is related
Speaker 1: to the Reality Labs their VR unit, right, And you've
Speaker 1: seen the losses there are piling up. So it's not
Speaker 1: exactly cut and dry how much these companies are losing there,
Speaker 1: it clearly is a significant financial impact. Last night was
Speaker 1: actually at a conference in Laguna Beach, and Craig Federigi,
Speaker 1: the head of software who was pretty instrumental in the
Speaker 1: development of a t T and other privacy features, was
Speaker 1: that was asked about this and he said they really
Speaker 1: didn't consider or the financial impact this would have on
Speaker 1: other companies when implementing the feature. Their standpoint clearly is
Speaker 1: from a user perspective, throwing up that permission sheet. Well,
Speaker 1: you do have the skeptics who might think, well, does
Speaker 1: an Apple have all this data and are they going
Speaker 1: to build their own you know, social you know, advertising
Speaker 1: juggernaut on the back of, you know, all of this
Speaker 1: information that they're now preventing other companies from having access to.
Speaker 1: That's an extremely fair point. I made the same point
Speaker 1: in a recent calm for power On and by the way,
Speaker 1: anyone listening to this should subscribe at bloomber dot com
Speaker 1: slash power on. And that is true. They are building
Speaker 1: and advertising juggernaut themselves. They want to push ads eventually
Speaker 1: to an ad supported tier of TV Plus. They could
Speaker 1: theoretically put ads in iTunes and Apple Music across many
Speaker 1: of their services. The app store is getting more advertisements now,
Speaker 1: Apple Maps, like I said, it's going to get advertisements.
Speaker 1: They throw ads in between uh, you know, plays and
Speaker 1: the MLB in ation for the TV plus app, right,
Speaker 1: So clearly they are pushing there. Clearly they are collecting data, right,
Speaker 1: So Apple is collecting data on users. They say however,
Speaker 1: they are following the same protocols they are requiring from
Speaker 1: developers too. But that is definitely something to take a
Speaker 1: look at and definitely something will re examine once these
Speaker 1: new advertising slots hit Apple Maps, TV Plus and other
Speaker 1: Apple software in the future, and we'll see the difference
Speaker 1: in the technology they're using between Meta and Apple and
Speaker 1: if Apple really is taking a different standpoint and using
Speaker 1: different methodology. They say they are everything we've seen so
Speaker 1: far as that they are, uh and at this point
Speaker 1: we have no reason not to believe them, but clearly
Speaker 1: it does seem a bit hypocritical on the surface. Okay,
Speaker 1: Mark German, as always, thank you. I want to continue
Speaker 1: this conversation now with Techonomy founder David Kirkpatrick, of course,
Speaker 1: who wrote the book on Facebook back in the day. David,
Speaker 1: when you look at these recent amounta numbers you hear
Speaker 1: about the changes that you know, the impact at a
Speaker 1: company like Apple is having, doesn't just boggle your mind.
Speaker 1: How how different Meta is today than the company that
Speaker 1: you started covering what now fifteen years ago. It's shockingly different,
Speaker 1: but it's shockingly different than it was a year ago.
Speaker 1: As Jasmine Edward was saying earlier, on your program. It
Speaker 1: is amazing to think of the essentially steady decline this
Speaker 1: company has experienced in a lot of different ways ever
Speaker 1: since they changed their name and declared that they were
Speaker 1: preparing for the metaverse future. Um. It is really studying, though,
Speaker 1: looking at what's happened today. I mean, the stock was
Speaker 1: down six but before today's action, and today since this morning,
Speaker 1: the stock is down more than in one day. And
Speaker 1: at last I checked after hours, it was still declining.
Speaker 1: It's it was a hundred and eight something just a
Speaker 1: second ago. You know, this is a company who stock
Speaker 1: was three eighty something fair very recently. Um, it is
Speaker 1: just stunning. I mean, but it's it's. I think a
Speaker 1: lot of it can be traced to essentially an absence
Speaker 1: of governance that they just Most companies have a more
Speaker 1: collaborative managerial approach, where a board actually gets to tell
Speaker 1: the CEO what they think. That is not the case here.
Speaker 1: An absence of governance or an over ambitious, overreaching Mark Zuckerberg, well,
Speaker 1: obviously those two things go together. Mark Zuckerberg is a
Speaker 1: brilliant leader and a great product person, and I think
Speaker 1: really a genius in many ways. But he is obsessed
Speaker 1: with the wrong thing. One of the other things that
Speaker 1: Jasmine and Bert said that I thought was really interesting
Speaker 1: was this idea that a lot of social media innovation
Speaker 1: is under the way right now. But so what did
Speaker 1: this company do Instead of trying to innovate more in
Speaker 1: social media? They decided to innovating something completely new. If
Speaker 1: they had been spent all this money they've been spending
Speaker 1: on the metaverse to try to come up with new
Speaker 1: social media products, especially at a time when they're not
Speaker 1: allowed to buy anything by regulators, that would probably been
Speaker 1: a way more advantageous approach and much more acceptable to investors.
Speaker 1: Got to ask you, since we saw Elon Musk walking
Speaker 1: into Twitter headquarters today with a kitchen sink, and Twitter
Speaker 1: could be a private company in forty eight hours, Um,
Speaker 1: how do you think Elon Musk and Ducker Burke who
Speaker 1: actually I don't you know, they're they don't like each
Speaker 1: other very much, but interesting, UM, I'm curious how you
Speaker 1: compare their approaches. Well, you got to give Musk credit
Speaker 1: for having a sense of human I mean, the kitchen
Speaker 1: thing could be but is this is this in good taste?
Speaker 1: Not that you know he's known for that, Especially they're
Speaker 1: going to lose their jobs. Well that's true. I look,
Speaker 1: I'm not saying it's you should make light of the
Speaker 1: fact that possibly thousands of people on Twitter are going
Speaker 1: to lose their jobs. I absolutely don't think that. But
Speaker 1: you know, business is generally too self important and has
Speaker 1: too grave of a view of itself. And this is
Speaker 1: an aspect of Elon Musk that I actually kind of appreciate.
Speaker 1: He tries to just be an ordinary person going about
Speaker 1: his day, you know, changing the world and buying companies
Speaker 1: for forty five billion dollars. So you know, it is amusing,
Speaker 1: you can't deny. He was an interview in the Financial
Speaker 1: Times over the weekend where he was asked what are
Speaker 1: you doing? And he said, aren't you amused? That was
Speaker 1: his response. He wants to amuse us. And look, it
Speaker 1: is at the cost sometimes of some serious people that
Speaker 1: have real consequences. But on right, and it's not just
Speaker 1: the people which are really important. What about public discourse?
Speaker 1: Are you at all concerned that, like the future of
Speaker 1: public discourse is not a joke and shouldn't be uh
Speaker 1: treated by a joke? Right, it's impossible will not to
Speaker 1: be concerned. But we really don't know what he's gonna do.
Speaker 1: He said so many different things. A lot of them
Speaker 1: are impractical. Some of them, as I've mentioned on the
Speaker 1: show before, are appealing to me, like giving genuine identity
Speaker 1: to users. UM. I don't view it as a potential
Speaker 1: unmitigated disaster that Elon Musk might control Twitter. It sounds
Speaker 1: like an idiotic disaster to lay off se of the employees,
Speaker 1: because I can't imagine the company could continue operate responsibly
Speaker 1: if that were to occur, And I honestly don't expect
Speaker 1: that to happen. It's the kind of thing he says,
Speaker 1: shooting from the hip. Uh, you know, we'll have to watch.
Speaker 1: You know, the Twitter is a company that needed radical surgery.
Speaker 1: They're certainly going to get it. I don't think any
Speaker 1: of us can really know what happens next. Even it's
Speaker 1: all gonna all gonna sink in over time, David, we
Speaker 1: are not gonna let the sink Hans go. Um. David
Speaker 1: Kirkfadrick to Economy Founder, as always, good to have you.
Speaker 1: For today's Crypto report, we're diving into the investing behaviors
Speaker 1: of women. A new report finding that one in ten
Speaker 1: women are choosing crypto as their first investment. This is
Speaker 1: part of Block five's Real Talk survey and here to
Speaker 1: discuss block by co founder Flori Marquez. So, Flori talk
Speaker 1: to us about the big takeaways here. There were some
Speaker 1: some surprising results. Hey, Emily, it's great to see you again.
Speaker 1: And there were surprising results and some are good and
Speaker 1: some kind of signal to me, what are things that
Speaker 1: we need to continue to work on. But the key
Speaker 1: takeaway is that women that are invested in crypto are
Speaker 1: resilient in the spare market. However, we did also see
Speaker 1: there was a generational gap amongst women who feel financially
Speaker 1: secure in their investment strategies and those who do not,
Speaker 1: And specifically we saw that that gap was between millennial
Speaker 1: women who tend to feel more financially secure and then
Speaker 1: Gen X tends to be the least financially secure. And
Speaker 1: so I think what's important about these surveys is we're
Speaker 1: looking to understand the differences between different behaviors so that
Speaker 1: we can really get to where is the pain point
Speaker 1: and how can we try to solve that? And so
Speaker 1: high level, there's definitely a gap. Yeah, go ahead, Well exactly,
Speaker 1: it's like, well, what are you going to do? With
Speaker 1: this information. Now that you have this information, I mean
Speaker 1: it sort of makes sense that gen xers might feel
Speaker 1: less secure if they have more responsibilities, right, definitely. And
Speaker 1: I think there's also just a generational gap just in
Speaker 1: terms of understanding of technology, right um, depending on what
Speaker 1: technology was available when you grew up, with your comfortability
Speaker 1: with different apps. And so I'm a huge believer in
Speaker 1: really understanding your consumer base. And in order to address
Speaker 1: a problem, you have to understand that not all consumers
Speaker 1: are the same and people need different types of information
Speaker 1: presented to them in different ways. In order to get
Speaker 1: comfortable with crypto and so a block five we focus
Speaker 1: on three key areas. The first is accessibility, and that's
Speaker 1: everything from how is your app designed, what is the
Speaker 1: experience like? All the way down to what what is
Speaker 1: client success like? Can you pick up the phone and
Speaker 1: talk to someone if that's what you need to feel comfortable.
Speaker 1: The second is really understanding through data, which is what
Speaker 1: we're diving into today. You can't solve a problem if
Speaker 1: you don't really understand what's driving it. And the third
Speaker 1: is leading by example. I really believe that you can't
Speaker 1: be what you can't see, and so I think as
Speaker 1: a woman, we have to be out here talking in
Speaker 1: the open and really making this industry a lot more
Speaker 1: approachable to people who have historically been excluded from financial
Speaker 1: services investments. And then crypto well, speaking of the industry,
Speaker 1: obviously a lot has changed with the crypto crash, and
Speaker 1: I'm curious how that's changing your business model, specifically the
Speaker 1: institutional lending market. How much has Block five's role in
Speaker 1: that market change, especially given some of the big collapses
Speaker 1: that we've seen, and how is how is your role
Speaker 1: in it evolving. So one of the things that came
Speaker 1: out of this summer is a couple of things. There
Speaker 1: was a shift in the market dynamics. So previous to
Speaker 1: the events of this summer, it was really a borrower's market,
Speaker 1: and now that the activity is really concentrated on the
Speaker 1: few players that are left Block Fine included, it has
Speaker 1: become a lenders market. But I think one of the
Speaker 1: biggest things that comes out of this summer is really
Speaker 1: the entire industries approach to risk and up blocked by.
Speaker 1: We took major steps in terms of educating the clients
Speaker 1: and the ecosystem in order to make sure that people
Speaker 1: truly understand what the risks in this platform. Him and
Speaker 1: I also believe that you do need robust risk management
Speaker 1: frameworks if you want to be a regulated entity. And
Speaker 1: so the three things that we did where we increased
Speaker 1: our public disclosures on risk management um our c r
Speaker 1: oh is out in the open much more. He hosted
Speaker 1: a Reddit a m A and lastly, UM we continue
Speaker 1: to release our quarterly financials, including our overall risk exposure
Speaker 1: on our website. And so we're definitely in the early
Speaker 1: stages for crypto. And I've said this for a long
Speaker 1: time and that much more maturation needs to happen, but
Speaker 1: we are committed to listen, to learn, and to continuously improve.
Speaker 1: All right, Floria Marcus, co founder of block always got
Speaker 1: Block five. Florie, always good to have you here. Thank
Speaker 1: you for stopping by coming up a sneak peek of
Speaker 1: my studio. One point, I sit down with door Dash
Speaker 1: CEO Tony Shoe talking about the future of the gig
Speaker 1: economy and so much more. This is Bloomberg. After going
Speaker 1: public at the height of the pandemic, door Dash is
Speaker 1: dealing with its first major economic down term. Shares at
Speaker 1: the food delivery giant are down some sixty this year.
Speaker 1: I spoke with door to CEO and co founder Tony
Speaker 1: Shoot about how the company is navigating the headwinds of change.
Speaker 1: It was certainly very exciting. It was exhilarating. You know,
Speaker 1: it was the first time that you know, our company
Speaker 1: went public, the first time that I had ever undergone
Speaker 1: any of those types of experiences before. But at the
Speaker 1: you know, in the back of my head at you know,
Speaker 1: it was that saying that you're never as good or
Speaker 1: as bad as they say you are, and so just
Speaker 1: remember that. So tease that out for me a little bit,
Speaker 1: because the big question is how much do customers keep
Speaker 1: ordering out in a high inflation environment. How much long
Speaker 1: term you know, sustainability and growth is there. Really, Even
Speaker 1: though covid is now effectively sustained and we understand how
Speaker 1: to live with it, customers are continuing to order Those
Speaker 1: that joined us during the pandemic, they're still ordering out
Speaker 1: about the same rates as those who joined us before
Speaker 1: the pandemic. And that's because eating out and getting things
Speaker 1: delivered are pretty complementary. On the second point around inflation,
Speaker 1: you know, I can say that in the last sixty
Speaker 1: years and looking at the data, spend in restaurants and
Speaker 1: in grocery have only declined in two of those sixty years,
Speaker 1: including high inflationary times much higher than what we observe today.
Speaker 1: And so what I think I take, um, you know,
Speaker 1: solace in even though I see the fact that there
Speaker 1: is high inflation, is that customers are going to continue
Speaker 1: spending on food, and our job is to bring greater
Speaker 1: and greater affordability. More broadly, the economy is in a
Speaker 1: tough position. Your competitors have announced layoffs and hiring freezes
Speaker 1: and slow downs. Is door dash considering any of these,
Speaker 1: And I think we've been fortunate mostly because most of
Speaker 1: our investments that happened during the pandemic really were meant
Speaker 1: to build new businesses, and those new businesses have continued
Speaker 1: to grow. New businesses, you know, beyond restaurants in categories
Speaker 1: like grocery, convenience, um or retail, new businesses overseas. You know,
Speaker 1: we announced a large acquisition Involts where that really helped
Speaker 1: double our overall addressable market to seven million people. New
Speaker 1: businesses and building an advertising business new businesses, expanding our
Speaker 1: services and building a platform to help businesses build their
Speaker 1: own digital operations. Do you see doortosh is more of
Speaker 1: a super app of the future or is it something different? Well,
Speaker 1: I see doortash as really solving two problems. You know.
Speaker 1: Problem one is how do we bring incremental demand to
Speaker 1: all the physical businesses as they kind of figure out
Speaker 1: their own digital in house capabilities. And the second problem
Speaker 1: we're trying to solve is bring tools to these businesses.
Speaker 1: There's still a lot of competition and delivery. Who do
Speaker 1: you think survives the delivery wars? Who doesn't and why? Well,
Speaker 1: delivery is a scale economies game. You know, at the
Speaker 1: end of the day, you can survive even doing deliveries.
Speaker 1: From a singular story, you know, there's still mom and
Speaker 1: pop pizza shops and Chinese restaurants that do their own delivery.
Speaker 1: Do you see door dash as a challenger to like Walmart, Amazon, Well,
Speaker 1: I see door dash um, you know, as a champion
Speaker 1: of local businesses and physical businesses. I don't think that
Speaker 1: a world in which we just get what we want
Speaker 1: to buy or consume for a few places is a
Speaker 1: world that again is as worth enjoying living in it.
Speaker 1: For our job is to make sure that all of
Speaker 1: these businesses, all of the millions of physical businesses globally
Speaker 1: can continue to compete. I do a lot of door.
Speaker 1: Dash helps me be a working mom. Whenever I interview you,
Speaker 1: I get pings from dashers and some of them say
Speaker 1: they don't get paid enough. Some of them seem pretty angry.
Speaker 1: What's your response to them. We want the local economy
Speaker 1: to grow and to thrive. That includes Dashers. We have
Speaker 1: three million Dashers that come to the platform every single quarter,
Speaker 1: and so it's really important to me what they say.
Speaker 1: And it's in fact why you know the company myself included.
Speaker 1: We still Dash do deliveries, in other words, once a month.
Speaker 1: You still do deliveries once a month. That's why we
Speaker 1: have a Dasher Community Council that we started three four
Speaker 1: years ago. Now, I want to see one of your
Speaker 1: memos after a delivery. Are you like sending notes? I'm texting,
Speaker 1: you know, it's not even after the delivery. I'm texting,
Speaker 1: you know, not texting while'm driving, but texting after after
Speaker 1: I complete the order from your deliveries? What have you learned? Everything?
Speaker 1: All of the details, everything from you know, pay considerations
Speaker 1: um UM, everything from um operations at a store. You
Speaker 1: know which stores are a bit faster in their operations
Speaker 1: or more consistent, Which stores are are less consistent? Where
Speaker 1: do you find the last parking space in downtown San Francisco? UM,
Speaker 1: all of these details matter. They matter for efficiency, they
Speaker 1: matter for driver pay, they matter for merchant earnings. And
Speaker 1: so as a result, you know, what I say to
Speaker 1: dashers is please continue to talk to me. I'm just
Speaker 1: Tony at door Dash, and we're always trying to, you know,
Speaker 1: make things better or we're not saying that we're perfect.
Speaker 1: But when we look at UM, you know the data
Speaker 1: that we've collected, you know, the average dasher is making
Speaker 1: an hour nationwide when they're on, when they're doing deliveries,