WEBVTT - Spotify and Palantir Surge, Tech Market Bulls 0:00:01.600 --> 0:00:05.920 From Mahart where Innovation, money and power Collie in Silicon 0:00:06.000 --> 0:00:10.440 Vallet NBN. This is Bloomberg Technology with Caroline Hyde and 0:00:10.680 --> 0:00:11.280 Ed Ludlow. 0:00:24.840 --> 0:00:27.760 I'm Caroline Heide Bloomberg's world headquarters in New York, and 0:00:27.760 --> 0:00:29.320 I'm Ed Ludlow in San Francisco. 0:00:29.560 --> 0:00:31.440 This is Bloomberg Technology. 0:00:31.000 --> 0:00:34.599 Coming up full earnings coverage ahead of shares of Spotify 0:00:34.640 --> 0:00:38.080 and Palanteer. They surge on strong results details to come. 0:00:38.760 --> 0:00:42.600 Plus strategists from Citybank warm positioning in technology stocks is 0:00:42.640 --> 0:00:45.560 so bullish that any sell off in the sector could 0:00:45.600 --> 0:00:47.440 spark a market route will break down. 0:00:47.479 --> 0:00:51.320 The report and Adam Newman and other investors they're exploring 0:00:51.360 --> 0:00:54.600 an offer to buy we work out of bankruptcy or 0:00:54.600 --> 0:00:56.880 bringing the latest reporting on the matter. But first that's 0:00:56.920 --> 0:00:59.720 checking on these markets, because as a macro story, it's 0:00:59.760 --> 0:01:02.440 our to the sell off. Significant sell off in the 0:01:02.480 --> 0:01:05.199 bond market. We see just a little bit of calmness 0:01:05.240 --> 0:01:07.319 as we anticipate, of course, a lot of fed speak 0:01:07.360 --> 0:01:09.199 to come. We're off by about tenth of a percent 0:01:09.280 --> 0:01:13.160 on the Nasdaq. More broadly, Tenure yield down five basis 0:01:13.200 --> 0:01:16.160 points after having risen and risen fast in the last 0:01:16.160 --> 0:01:18.640 two training days. But I look at what's happening in China. 0:01:18.720 --> 0:01:20.800 This really is the story of a global nature today. 0:01:20.959 --> 0:01:23.399 Ed we see, of course the talk that Chijinping, at 0:01:23.440 --> 0:01:26.200 the very top hierarchy chain of China is starting to 0:01:26.200 --> 0:01:28.320 debate what to do about the route the sell off 0:01:28.319 --> 0:01:31.319 that continues to afflict some of the Chinese stocks, and 0:01:31.319 --> 0:01:33.840 therefore some of the internet names do well today. Training 0:01:33.920 --> 0:01:36.800 of Chinese stocks up some five percent. When you're looking 0:01:36.840 --> 0:01:39.200 at the Nasdak Golden Dragon today we're up five point 0:01:39.200 --> 0:01:41.400 four percent. Moving on, let's a happening in the world 0:01:41.400 --> 0:01:44.040 of crypto. We're up more than two percent in fact, 0:01:44.200 --> 0:01:46.200 sort of outperforming the rest of the tech names. At 0:01:46.200 --> 0:01:48.320 the day, we're currently training at forty three thousand. 0:01:48.320 --> 0:01:50.680 What if you've got on the micro This is an 0:01:50.680 --> 0:01:53.520 AI story, and this is Palenteered. The shares actually off 0:01:53.520 --> 0:01:55.760 session highs where they are up thirty percent, but on 0:01:55.840 --> 0:01:59.080 track for their biggest jump since May. Netting come of 0:01:59.080 --> 0:02:00.960 two hundred and ten million dollars in the year, just 0:02:01.000 --> 0:02:04.960 gone their first full annual profit ahead of expectations, and 0:02:05.000 --> 0:02:08.240 what Palenteer's saying is that for four year twenty four 0:02:08.680 --> 0:02:11.000 operating income will be up to eight hundred and fifty 0:02:11.000 --> 0:02:13.320 million dollars, way above what the street thought that they 0:02:13.320 --> 0:02:18.560 could do. The story unbelievable demand for AI products. In fact, 0:02:18.639 --> 0:02:22.519 so great is the demand. Palenteer CEO doctor Addix carp 0:02:22.520 --> 0:02:25.919 told Bloomberg last night that they can't cope. They don't 0:02:25.919 --> 0:02:28.800 know what to do about all of the incoming for 0:02:28.840 --> 0:02:31.560 their AI platform. A really big move to the upside 0:02:31.560 --> 0:02:33.240 in that stock will get deeper in that with our 0:02:33.240 --> 0:02:36.359 analysts in just a moment. Spotify is interesting before the bell. 0:02:36.440 --> 0:02:39.120 This is a global name of a lot of US investors. 0:02:39.160 --> 0:02:42.040 It is on track for its biggest jump since October. 0:02:42.400 --> 0:02:45.240 Are two hundred and thirty six million subscribers, a one 0:02:45.320 --> 0:02:47.639 million beat against what the street was expecting. 0:02:47.919 --> 0:02:49.560 But I kind of reflect on the last. 0:02:49.360 --> 0:02:51.480 Few weeks with shows Caro and we've been talking a 0:02:51.480 --> 0:02:54.560 lot about the difficulty in the streaming landscape, all the 0:02:54.639 --> 0:02:57.320 changes that are happening. They're still seeing growth and the 0:02:57.360 --> 0:02:59.519 streets cheering it. Let's get more on the details with 0:02:59.600 --> 0:03:02.840 Bloombo Lucas Shaw, who leads our screen time vertical, and 0:03:03.480 --> 0:03:06.800 is this just about the subscriber beat, the premium subscriber beat. 0:03:07.840 --> 0:03:09.679 I think it's that they beat on everything. 0:03:09.760 --> 0:03:15.000 You know, oftentimes when Spotify has earnings, they delivered consistent 0:03:15.200 --> 0:03:19.480 user growth really for years, but there was there's always something. 0:03:19.520 --> 0:03:21.840 It feels like that investors can nitpick. The margins are 0:03:21.840 --> 0:03:23.840 a little off, the revenue is a little off, the 0:03:23.880 --> 0:03:26.359 forecast is a little off. This time, they really beat 0:03:26.360 --> 0:03:28.880 across the board. You know, they're growing fast and they've 0:03:28.919 --> 0:03:31.760 ever grown, which is pretty impressive for a fifteen sixteen 0:03:31.800 --> 0:03:34.280 year old company. They're doing it with free users, they're 0:03:34.320 --> 0:03:37.000 doing with paid users, and the margins are starting to 0:03:37.040 --> 0:03:38.960 get a little bit better. You know, it's still an 0:03:39.000 --> 0:03:43.840 unprofitable company, not great, but between raising prices, cutting costs, 0:03:43.880 --> 0:03:46.120 and cutting back on some of the expenditures, it's looking 0:03:46.200 --> 0:03:47.840 like a better business than most investors. 0:03:47.960 --> 0:03:51.320 And those expenditures were people Lucas, an awful lot of 0:03:51.360 --> 0:03:54.760 people that went more broadly, where then, do we think 0:03:54.800 --> 0:03:57.560 that the area of focus is at the moments for 0:03:57.600 --> 0:04:00.800 Spotify because they pull back on podcasting, but then they 0:04:01.200 --> 0:04:04.040 well more than two hundred millions going for Joe Rogan 0:04:04.120 --> 0:04:07.200 to remain. How are you seeing the company continuing to innovate? 0:04:08.160 --> 0:04:10.520 Well, when I brought up expenditures, you're right, you know, 0:04:10.560 --> 0:04:12.560 I probably should have been a little more caring when 0:04:12.600 --> 0:04:14.440 it comes to how many people they cut. I was 0:04:14.480 --> 0:04:17.719 actually thinking more about the kind of the shift in 0:04:17.760 --> 0:04:18.880 the programming strategy. 0:04:19.000 --> 0:04:20.080 You know, you brought up Rogan. 0:04:20.240 --> 0:04:22.719 It's important to note that that podcast will no longer 0:04:22.800 --> 0:04:25.680 be exclusive to Spotify, and that's part of a real 0:04:25.720 --> 0:04:28.440 shift and strategy where they've taken shows. You know, they 0:04:28.440 --> 0:04:31.800 went in first with podcasting and got a lot of 0:04:31.800 --> 0:04:34.040 exclusive rights to shows by a lot of companies. Did 0:04:34.040 --> 0:04:36.880 that sort of amass the audience and bring podcast listeners 0:04:36.920 --> 0:04:40.000 onto the platform. Now that they have people there, they're 0:04:40.040 --> 0:04:42.400 more than happy to take those shows wide. And so 0:04:42.520 --> 0:04:45.600 Alex Cooper's show, Colored Daddy and Joe Rogan they can 0:04:45.640 --> 0:04:46.280 be anywhere. 0:04:46.320 --> 0:04:47.279 Spotify just wants the. 0:04:47.320 --> 0:04:50.120 Ability to sell ads, distribute the shows. And then to 0:04:50.160 --> 0:04:52.360 your point about you know, kind of what is next 0:04:52.400 --> 0:04:55.080 and big, they're making a big push into audiobooks. 0:04:55.680 --> 0:04:57.400 Well that's what caught my eye. 0:04:57.400 --> 0:04:59.279 It's a bright spot for the company, and they kind 0:04:59.279 --> 0:05:02.160 of trialed the giveaway right so in some markets they 0:05:02.200 --> 0:05:04.880 would say have a few audiobooks on us, and now 0:05:04.880 --> 0:05:07.880 they're kind of solidifying that that strategy. But it's also 0:05:07.920 --> 0:05:10.200 like a cultural moment like audiobooks are in now. 0:05:10.240 --> 0:05:12.400 This is great for Spotify. Yeah. 0:05:12.440 --> 0:05:16.040 Look, Audible has been the dominant player in audiobooks for 0:05:16.240 --> 0:05:20.479 basically as long as audiobooks have existed, but Spotify sees 0:05:20.520 --> 0:05:23.080 an opportunity there, much like they did in podcasting, where 0:05:23.120 --> 0:05:26.880 Apple was the dominant player, hadn't really innovated all that much, 0:05:27.760 --> 0:05:30.280 and because there are already hundreds of millions of people 0:05:30.320 --> 0:05:32.520 who use Spotify to listen to music, they figured it 0:05:32.560 --> 0:05:34.839 would be pretty easy to convert them into doing some 0:05:34.880 --> 0:05:38.440 other type of audio behavior, that being podcasting. That has worked, 0:05:38.440 --> 0:05:41.240 at least from an audience perspective. You know, Spotify's probably 0:05:41.279 --> 0:05:44.159 the number one podcast platform in the world, maybe number two, 0:05:44.440 --> 0:05:48.560 depends how you want to classify YouTube and Apple in audiobooks, 0:05:48.400 --> 0:05:49.400 it's a tougher slog. 0:05:49.480 --> 0:05:52.320 Audible is not quite as lazy, I would. 0:05:52.120 --> 0:05:55.760 Say, as Apple has been in podcasting, but Spotify does 0:05:55.839 --> 0:05:58.120 have a much larger customer base that's just coming in 0:05:58.160 --> 0:05:59.680 every day to listen to stuff. 0:06:00.160 --> 0:06:02.480 Nucas was great to catch up and check out your 0:06:02.480 --> 0:06:04.760 wallup as is some of the best Luka show. We 0:06:04.800 --> 0:06:07.760 appreciate him on All Things Spotify. I meanwhile, let's turn 0:06:07.839 --> 0:06:10.240 to another phenomenal mover, as Ed was just pointing out 0:06:10.279 --> 0:06:14.279 Palenteer absolutely thriving on the day up almost twenty one percent. 0:06:14.360 --> 0:06:16.520 They gave higher than expect a profit outlook for twenty 0:06:16.560 --> 0:06:20.600 twenty four. AI demand drive sales is off the charts. 0:06:20.800 --> 0:06:23.559 Man Deep Sing is here from Bluemeg Intelligence. Dan Ive's 0:06:23.640 --> 0:06:26.560 making us laugh saying it's the messy of the reports 0:06:26.600 --> 0:06:29.080 when it comes to AI, and he means leo MESSI 0:06:29.120 --> 0:06:31.599 when it comes to the absolute studter of a soccer player. 0:06:32.800 --> 0:06:34.880 How are they not able to keep up with demand? 0:06:34.960 --> 0:06:36.640 Who is coming with the demand? 0:06:36.800 --> 0:06:39.599 I mean clearly the lam wave that we have seen 0:06:39.800 --> 0:06:42.680 over the last twelve months is a nice tail wind 0:06:42.720 --> 0:06:47.200 for them. And what Talenteer has is a visualization software 0:06:47.680 --> 0:06:52.080 that helps you leverage AI and also use it. So 0:06:52.320 --> 0:06:55.200 what companies are struggling with right now is you know, 0:06:55.320 --> 0:06:58.040 they are looking to train their lambs and. 0:06:57.960 --> 0:06:59.200 Then deployed on the field. 0:06:59.200 --> 0:07:02.560 He quipped about you know how chatbot is not such 0:07:02.560 --> 0:07:05.200 a great interface, you know to interact with an LLM, 0:07:05.720 --> 0:07:08.279 and they do have, you know, visualization software that is 0:07:08.320 --> 0:07:12.320 being used for defense purposes, healthcare customers. So I think 0:07:12.360 --> 0:07:17.320 from a vertical AI strategy. They do have something unique 0:07:17.440 --> 0:07:20.240 and think of it as a copilot. Everyone right now 0:07:20.320 --> 0:07:23.440 is trying to deploy a copilot. I think Palenteer solution 0:07:23.600 --> 0:07:26.760 will resonate for certain verticals. And that's what they called 0:07:26.760 --> 0:07:30.880 out yesterday with the US commercial customers because traditionally they 0:07:30.880 --> 0:07:33.880 have been heavy on the government side, but actually they 0:07:33.880 --> 0:07:36.280 are now adding new customers on the commercial side, which 0:07:36.320 --> 0:07:38.840 is what I think the market is excited about. 0:07:39.160 --> 0:07:41.880 And this is what doctor Alex Karp told us in 0:07:41.920 --> 0:07:45.600 an interview last night that the focus essentially is building 0:07:45.600 --> 0:07:49.600 out that commercial business. Our commercial business is exploding in 0:07:49.640 --> 0:07:51.240 a way we don't know how to handle. 0:07:51.280 --> 0:07:53.960 We don't know what to do with you onslaught of demand. 0:07:54.400 --> 0:07:57.400 But Mandeep and Caro, I'm just just human me on 0:07:57.400 --> 0:07:59.720 this one. I'm just going to go back a few 0:07:59.800 --> 0:08:04.880 year is pre IPO, where talented didn't care about salespeople. 0:08:05.360 --> 0:08:09.600 They weren't really worried about onboarding customers any of that stuff. 0:08:09.640 --> 0:08:12.360 In fact, they ridiculed the idea of salespeople. They just 0:08:12.400 --> 0:08:17.640 wanted to do their own thing. Now, dotor cops basically saying, uh, 0:08:18.120 --> 0:08:20.960 we need some sales reps and some sales engineers and 0:08:21.000 --> 0:08:23.600 we need to be able to give this to customers. 0:08:25.160 --> 0:08:27.720 You convince many they can actually do that make a 0:08:27.760 --> 0:08:28.560 business of it. 0:08:29.080 --> 0:08:32.160 Yeah, Look, they have a very different selling motion, So 0:08:32.200 --> 0:08:35.400 compare them to hyperscalers. What Microsoft is doing with open 0:08:35.440 --> 0:08:39.319 ai really setting infrastructure and then open Ai providing the 0:08:39.480 --> 0:08:42.560 LM and making it easy to train your own model. 0:08:43.120 --> 0:08:46.200 Palaneer solution is more out of the box. If you 0:08:46.280 --> 0:08:49.800 have geospatial data, you can use their platform and it 0:08:49.880 --> 0:08:53.200 offers something unique. But I don't think it applies to 0:08:53.600 --> 0:08:56.880 all sources of enterprises, and that's where you know, having 0:08:56.960 --> 0:08:59.840 a salesforce could help. But we also know the customer 0:09:00.040 --> 0:09:03.000 position costs go up when you have a direct salesforce model. 0:09:03.320 --> 0:09:06.520 So to me, the competitive dynamics are between you know, 0:09:06.559 --> 0:09:10.240 the likes of Palenteer and Snowflake or data breaks that 0:09:10.440 --> 0:09:13.959 also compete in the same space, but they leverage the 0:09:14.040 --> 0:09:17.640 public cloud more than Palenteer does, which is more on prem. 0:09:17.760 --> 0:09:21.840 So it's really about enterprises doing on prem versus leveraging 0:09:21.880 --> 0:09:22.600 the public cloud. 0:09:22.640 --> 0:09:27.760 Here, what's interesting is is pulling employees out of Europe 0:09:27.840 --> 0:09:30.160 at the moment Germany, France. He just thinks that in 0:09:30.200 --> 0:09:33.079 the moment the demand isn't there. He thinks Europe sort 0:09:33.080 --> 0:09:35.520 of not taking part in this AI wave. Are you 0:09:35.600 --> 0:09:37.079 seeing that regionally speaking? 0:09:37.360 --> 0:09:42.480 Well, so, I think it makes intuitive sense because Europe 0:09:42.800 --> 0:09:46.160 is probably behind when it comes to leveraging lllms or 0:09:46.200 --> 0:09:50.079 customizing lllms. So from that perspective, even though there are 0:09:50.160 --> 0:09:54.160 startups like Mistrol over there, you don't see companies being 0:09:54.200 --> 0:09:57.520 at the cutting edge of deploying these lms. So one 0:09:57.559 --> 0:10:00.559 could argue that right now the market is not ripe 0:10:00.920 --> 0:10:01.640 for deployment. 0:10:01.840 --> 0:10:03.240 They just don't want to use a US company. 0:10:04.200 --> 0:10:08.040 That's that's also I mean, Talenteer is controversial. We know that, 0:10:08.120 --> 0:10:10.080 and you know the fact that they've been so vocal 0:10:10.200 --> 0:10:13.360 about you know, everything they do with regards to the 0:10:13.400 --> 0:10:17.079 Middle East conflict, and that has actually helped their international business. 0:10:17.160 --> 0:10:21.400 But not every commercial company wants to engage with, you know, 0:10:21.440 --> 0:10:24.640 a company like Valenteer that clearly has very vocal views, 0:10:24.679 --> 0:10:27.439 and that could go against you, you know sometimes when 0:10:27.480 --> 0:10:28.920 you're trying to sell software. 0:10:30.480 --> 0:10:33.520 Man deep seeing of Bloomberg Intelligence, great to have your analysis. 0:10:33.760 --> 0:10:36.439 Let's just talk about technology's impact on the broader market 0:10:36.520 --> 0:10:39.200 right now, because City out with a really interesting note 0:10:39.240 --> 0:10:42.959 warning about positioning in tech stocks in particular right now, 0:10:42.960 --> 0:10:45.679 saying it is so bullish that any sell off could 0:10:45.720 --> 0:10:48.360 actually trigger a wider route with the anas, noting the 0:10:48.440 --> 0:10:53.600 NASDAC shortbets, they've basically been completely cleared. Let's dig into 0:10:53.760 --> 0:10:56.319 what is a concern for the broader market after Tangler 0:10:56.400 --> 0:10:59.080 Investment CIO Nancy Tangler, who we love having on because 0:10:59.080 --> 0:11:02.920 you're micro detail about individual companies they're leaders, but also 0:11:03.040 --> 0:11:05.400 the macro impact of tech right now, are you worried 0:11:05.600 --> 0:11:07.720 about any jitters and what that might mean from the 0:11:07.840 --> 0:11:09.679 smp A broader benchmarks. 0:11:10.280 --> 0:11:12.160 Rilyan, I don't think I'm a permable. 0:11:12.760 --> 0:11:14.480 You know, I've been doing this for forty years, and 0:11:14.520 --> 0:11:16.360 there are plenty of times when you want to head 0:11:16.400 --> 0:11:18.400 your portfolios or get out, but I. 0:11:18.320 --> 0:11:19.600 Don't think this is one of them. 0:11:19.640 --> 0:11:23.080 And I think you use weakness in some of these names. 0:11:23.080 --> 0:11:25.280 If there is a selloff and there we'll get a 0:11:25.320 --> 0:11:28.320 correction and that will be healthy for the market. And 0:11:28.360 --> 0:11:30.240 I think then you want to add to names that 0:11:30.280 --> 0:11:32.240 you either don't own or you don't think you own, 0:11:32.280 --> 0:11:34.880 a not enough of you heard the Palenteer, I mean 0:11:34.880 --> 0:11:38.400 you just had a great interview on Palenteer that was 0:11:38.440 --> 0:11:44.040 an extraordinarily bullish report for the monetization of generative AI. 0:11:44.280 --> 0:11:45.800 So the naysayers. 0:11:45.200 --> 0:11:47.960 Have have been fleeing the tech trade for the last 0:11:47.960 --> 0:11:49.480 four years that I can remember. 0:11:50.000 --> 0:11:51.640 It might be actually even longer. 0:11:51.679 --> 0:11:54.920 And every time technology comes back, and we've talked about 0:11:54.920 --> 0:11:58.199 how they're the new defensive names because they generate reliable 0:11:58.240 --> 0:12:01.400 earnings growth, and we've seen that again this earning season. 0:12:02.280 --> 0:12:05.320 What's been interesting is perhaps some of the companies that 0:12:05.360 --> 0:12:08.240 have outperformed that we finally get to understand where AI 0:12:08.320 --> 0:12:10.760 fits into the business model, and one that you haven't 0:12:10.880 --> 0:12:14.200 liked has been marks like a Berg's Meta remind us 0:12:14.200 --> 0:12:17.200 of why and why perhaps you know, are you changing 0:12:17.200 --> 0:12:19.319 your tune since the Mega rally come Friday? 0:12:20.960 --> 0:12:23.560 No, I mean, we've owned it in the past, and 0:12:23.600 --> 0:12:25.360 we've made a lot of money on the stock, and 0:12:25.400 --> 0:12:27.800 we got out in the high three hundreds a couple 0:12:27.880 --> 0:12:30.559 of years back, and you know, I've. 0:12:30.360 --> 0:12:31.520 Been wrong on that. 0:12:31.720 --> 0:12:35.520 But there are other places where we've put our client's 0:12:35.640 --> 0:12:39.280 money and those have been maybe maybe not quite as 0:12:39.280 --> 0:12:40.960 good or in some cases better. 0:12:41.360 --> 0:12:43.720 But I just don't like the two share structure. I 0:12:43.760 --> 0:12:47.960 don't like the business model, and you know, and I've 0:12:48.000 --> 0:12:50.720 been wrong. So it's an advertising company for sure. 0:12:51.480 --> 0:12:55.160 They are going to adapt and adopt AI and that 0:12:55.200 --> 0:12:58.800 will probably continue to drive margins. But we just there's 0:12:58.840 --> 0:13:01.040 better places in our view. So that's where we've been 0:13:01.120 --> 0:13:01.640 hiding out. 0:13:02.480 --> 0:13:05.400 Okay, so what would Meta and Zuckerberg have to do 0:13:06.160 --> 0:13:07.079 to change your mind? 0:13:08.760 --> 0:13:11.959 Well, I think for now we've missed it ed and 0:13:12.520 --> 0:13:15.360 so I love the dividend and whether or not it 0:13:15.400 --> 0:13:17.880 was self serving, I think he keeps about seven hundred 0:13:17.920 --> 0:13:20.400 million dollars a year from the dividend. I love the 0:13:20.440 --> 0:13:23.320 notion of it, and I think Google should be paying 0:13:23.320 --> 0:13:28.520 attention Amazon, which is a free cash flow course or tank, 0:13:28.600 --> 0:13:29.960 whereever you want to characterize it. 0:13:30.320 --> 0:13:32.640 But in terms of Meta, I just I think we've 0:13:32.640 --> 0:13:33.000 missed it. 0:13:33.040 --> 0:13:35.920 So it would have to come down from evaluation standpoint, 0:13:35.920 --> 0:13:41.400 and we would need to see continued monetization across their platforms. 0:13:41.840 --> 0:13:44.880 But you know, listen, he's done a great job and 0:13:44.920 --> 0:13:46.000 there's no disputing it. 0:13:47.720 --> 0:13:48.120 Nancie. 0:13:48.440 --> 0:13:52.800 There are a few things as romantic and poetic as 0:13:52.800 --> 0:13:56.600 the Bloomberg Markets wrap headline, which reads Wall Street on 0:13:56.760 --> 0:14:00.640 hold as trade is a wait more fed speak inspiration 0:14:01.559 --> 0:14:04.560 and energy in the market. But it reminds us we 0:14:04.840 --> 0:14:07.319 forget all of the AI stuff. We're still waiting on 0:14:07.360 --> 0:14:07.880 the FED, right. 0:14:09.760 --> 0:14:12.680 I think the market is beginning to not listen to 0:14:12.720 --> 0:14:15.200 the FED. And the reason I say that, ed is 0:14:15.200 --> 0:14:20.280 if you go back and look at Chairman Pal's comments. Historically, 0:14:20.360 --> 0:14:24.080 he has been adamant about we're not even thinking about 0:14:24.160 --> 0:14:27.520 thinking about raising rates. We won't raise seventy five basis points. 0:14:27.720 --> 0:14:30.040 We're going to stay higher for longer. And each time 0:14:30.080 --> 0:14:33.400 he made those statements, he reversed himself a short time later. 0:14:33.680 --> 0:14:36.560 So I think what the market is seeing is a 0:14:37.880 --> 0:14:40.480 we may or may not get a cut in March, 0:14:40.560 --> 0:14:43.560 but we will get cuts this year. I think that 0:14:43.640 --> 0:14:46.320 the market is willing to coexist as we did in 0:14:46.360 --> 0:14:48.800 the nineties, and I've talked about that on your show, 0:14:49.120 --> 0:14:51.120 with higher interest rates because they're. 0:14:50.960 --> 0:14:52.560 Not debilitating and we've seen that. 0:14:52.640 --> 0:14:55.360 I mean, for the large tech companies, higher interest rates 0:14:55.560 --> 0:15:00.280 have actually been augured well to their balance sheet. They've 0:15:00.320 --> 0:15:03.560 grown cash because of the higher interest are receiving on cash. 0:15:03.600 --> 0:15:05.520 So I think that the market is. 0:15:05.520 --> 0:15:10.000 Saying, Okay, productivity is improving, there is a tight labor market, 0:15:10.040 --> 0:15:13.400 and again that's going to continue to benefit technology companies. 0:15:13.680 --> 0:15:16.680 The FED matters less and less each day that goes. 0:15:16.480 --> 0:15:17.240 By my view. 0:15:18.440 --> 0:15:21.240 Nancy Tangler of Laffa Tengler Investments. Great to catch up, 0:15:21.240 --> 0:15:23.240 Great to have you on the program, Thank you very much. 0:15:23.640 --> 0:15:27.040 Coming up here on Bloomberg Technology, we Work co founder 0:15:27.080 --> 0:15:30.920 Adam Newman and capital providers including Dan Lobe's Third Point, 0:15:31.200 --> 0:15:34.200 are working together to explore an offer to buy the 0:15:34.240 --> 0:15:38.360 coworking firm out of bankruptcy. According to a letter sent 0:15:38.440 --> 0:15:41.160 to wee Work's lawyers, I did just say that and 0:15:41.200 --> 0:15:42.120 we will discuss it. 0:15:42.120 --> 0:15:46.000 Next caroc ah deja vu Adam Newman again. Meanwhile, let's 0:15:46.000 --> 0:15:47.720 have a little look at what's happening with Hertz because 0:15:47.720 --> 0:15:52.280 actually we're now trading higher on the course Juggernaut for 0:15:52.400 --> 0:15:54.960 car Rental, we're up some nine percent. We had dipped 0:15:55.000 --> 0:15:58.560 into the read earlier because they massively lot missed in 0:15:58.640 --> 0:16:02.160 terms of their overall earnings share loss adjusted. One dollar 0:16:02.240 --> 0:16:04.440 thirty six per share is what they got. Why, Because 0:16:04.440 --> 0:16:07.720 they're selling down. They're offloading those twenty thousand Tesla evs, 0:16:08.240 --> 0:16:11.200 about one third of its overall electric fleet. But for now, 0:16:11.280 --> 0:16:13.520 investors starting to see some opportunity as to how they 0:16:13.640 --> 0:16:16.960 cut costs going forward. This is bruly meg technology. 0:16:27.160 --> 0:16:28.920 Okay, time for talking tech and first up. 0:16:29.000 --> 0:16:33.800 Potential investors in Elon Musk's artificial intelligence startup XAI are 0:16:33.840 --> 0:16:37.640 focusing in on two key selling points, access to Musk's 0:16:37.680 --> 0:16:41.160 array of companies, also known as the Musconomy, and the 0:16:41.200 --> 0:16:44.200 early success of a titan in the space open Ai. 0:16:44.360 --> 0:16:48.640 A slide deck that circulated among potential xi investors in 0:16:48.720 --> 0:16:53.640 December and January prominently features both Musk Strap Record and 0:16:53.880 --> 0:16:58.240 open Ai, including a slide showcasing the key attributes that 0:16:58.400 --> 0:17:02.440 drove open AI's six more coming. Plus, the newly released 0:17:02.480 --> 0:17:05.840 Apple and vision Pro headset is presenting some customer service 0:17:05.880 --> 0:17:08.760 snags for users. If a Vision Pro owner forgets their 0:17:08.800 --> 0:17:11.399 pass code, the only way to get the device working 0:17:11.440 --> 0:17:14.080 again is by bringing it to an Apple store or 0:17:14.160 --> 0:17:17.159 mailing it to Apple Care custos. Smart Apple would then 0:17:17.400 --> 0:17:20.600 raise and reset it. And we Work co founder Adam 0:17:20.640 --> 0:17:23.600 Newman is teaming up with capital providers, including dan Load's 0:17:23.600 --> 0:17:26.840 Third Point, to explore an offer to buy the coworking 0:17:26.920 --> 0:17:29.800 firm out of bankruptcy that according to a letter sent 0:17:29.840 --> 0:17:32.120 to Weework's lawyers, Newman and Third Point I mean trying 0:17:32.119 --> 0:17:34.920 to get the information necessary to formulate a bid which 0:17:34.920 --> 0:17:37.960 would be for the entire company or its assets back 0:17:38.000 --> 0:17:39.400 since September December. 0:17:39.440 --> 0:17:41.800 Sorry, Cara, and we are going to dig into this 0:17:41.840 --> 0:17:43.960 more because it's not the first time that Anna Newman's 0:17:44.080 --> 0:17:45.840 wanted to ride to the rescue on there. Mart Million 0:17:46.119 --> 0:17:48.600 joins us now for more on the story, and actually, 0:17:48.640 --> 0:17:50.639 like leak twenty twenty two, who is trying to make 0:17:50.680 --> 0:17:54.439 bids to basically resuscitate this company he was so associated with. 0:17:55.160 --> 0:17:57.560 Yes, so apparently there's been a lot happening behind the 0:17:57.560 --> 0:18:00.320 scenes that hasn't been too deeply reported on. But Newman 0:18:00.480 --> 0:18:03.520 just like can't let go of this old company that 0:18:03.600 --> 0:18:06.960 he started. So it's like we're maybe going to get 0:18:06.960 --> 0:18:10.120 we crash season two, Adam Newman coming back. It'll be fun. 0:18:10.160 --> 0:18:13.200 So yeah, as you mentioned, he apparently made a bid 0:18:13.240 --> 0:18:15.680 in twenty twenty two. According to his letter, he most 0:18:15.720 --> 0:18:20.879 recently offer another sort of like bankruptcy financing offer, and 0:18:20.960 --> 0:18:24.760 now he's teaming up with other financiers to make a 0:18:24.800 --> 0:18:27.160 big bid, maybe to buy the whole company. 0:18:27.520 --> 0:18:28.680 He hasn't been too. 0:18:28.600 --> 0:18:31.119 Specific, but he says he's frustrated because the company is 0:18:31.160 --> 0:18:33.439 not taking him seriously, not giving him the information that 0:18:33.520 --> 0:18:34.280 he wants. 0:18:35.040 --> 0:18:37.960 Mark Millian sharing his idea of fun with the millions 0:18:37.960 --> 0:18:38.399 of yous. 0:18:39.560 --> 0:18:40.600 What is We Work? 0:18:41.160 --> 0:18:43.479 What it is now and what they if they save it, 0:18:43.560 --> 0:18:45.439 hope to make it into. 0:18:45.640 --> 0:18:49.880 We Work is in bankruptcy. It's deep in debt. They 0:18:50.040 --> 0:18:55.600 can't pay their bills. They're renegotiating with their landlords. We 0:18:55.720 --> 0:18:58.840 Work is in deep, deep trouble. And for a lot 0:18:58.840 --> 0:19:01.960 of people, We Work is Adam Newman, which is why 0:19:01.960 --> 0:19:03.840 in some ways this does make sense. I mean, he 0:19:04.640 --> 0:19:07.240 deserves much of the credit for driving the company into 0:19:07.240 --> 0:19:10.000 the ground, which is why he was kind of pushed 0:19:10.000 --> 0:19:13.640 to step down in twenty nineteen. But the last few 0:19:13.720 --> 0:19:16.480 years it's been a tough It's been a tough economy 0:19:16.600 --> 0:19:18.600 for a real estate business, for a commercial real estate 0:19:18.640 --> 0:19:21.720 business in particular. So I don't know that Adam Newman 0:19:21.760 --> 0:19:24.040 would have been able to lead We Work out of 0:19:24.040 --> 0:19:26.520 the crisis that it went through in the pandemic. But 0:19:27.080 --> 0:19:30.000 what is we Work without Adam Newman? Can can most 0:19:30.040 --> 0:19:34.320 people even like name the last couple CEOs of the company, 0:19:35.600 --> 0:19:38.440 And so maybe maybe this doesn't make sense. 0:19:38.480 --> 0:19:39.240 Maybe this is We. 0:19:39.359 --> 0:19:42.359 Works last shot, and maybe they should take him seriously 0:19:42.359 --> 0:19:44.160 at least that's what he's arguing. 0:19:43.840 --> 0:19:44.399 To the company. 0:19:44.960 --> 0:19:47.159 All right, but invegs Monk Millian on the what next 0:19:47.160 --> 0:19:49.560 for we We'll keep tracking it. Another top story in 0:19:49.680 --> 0:19:52.440 Vidia and Cisco. It's teaming up to help companies build 0:19:52.560 --> 0:19:55.480 in house AI computing, an attempt to push the tech 0:19:55.560 --> 0:19:58.040 beyond the big data center provide a Cisco is going 0:19:58.080 --> 0:20:01.720 to offering Vidio based equipment popular for developing AI models, 0:20:01.760 --> 0:20:04.879 along with its own networking gear. And herein lies the 0:20:04.960 --> 0:20:09.359 story forget h one hundred. There are other things Ethernet cables, 0:20:09.640 --> 0:20:11.879