WEBVTT - Micron Falls on Earnings and SpaceX Nabs a $210B Valuation 0:00:01.560 --> 0:00:04.920 From the heart where Innovation of Money and Power Collie 0:00:05.160 --> 0:00:06.840 in Silicon Valley, NBN. 0:00:07.160 --> 0:00:11.240 This is Bloomberg Technology with Caroline Hyde and Ed loved Love. 0:00:24.880 --> 0:00:27.360 I'm Caroline Hide of Bloomberg's World headquarters in New York 0:00:27.800 --> 0:00:29.400 and Imed Lovelo in San Francisco. 0:00:29.560 --> 0:00:31.440 This is Bloomberg Technology coming up. 0:00:31.520 --> 0:00:35.240 Micron fools as the forecast fails to meet the loftiest 0:00:35.440 --> 0:00:38.280 AI driven expectations for coverage. 0:00:37.960 --> 0:00:43.000 Ahead, Plus SpaceX notches a two hundred and ten billion 0:00:43.040 --> 0:00:45.880 dollar valuation in its latest tender offer. 0:00:45.920 --> 0:00:47.440 Details ahead, and we go. 0:00:47.400 --> 0:00:48.840 Live to Santa Ana, California. 0:00:48.960 --> 0:00:52.480 That's as police raid a warehouse of suspected stolen merchandise 0:00:52.720 --> 0:00:56.760 bound for marketplaces like Amazon. All that and so much 0:00:56.800 --> 0:00:58.720 more ahead, But first we check in on these markets 0:00:58.720 --> 0:01:01.280 and look a little reprieve to some of the selling 0:01:01.320 --> 0:01:02.800 that we've seen earlier in the traders. 0:01:03.160 --> 0:01:05.320 Well, the bad news is good news on the macro front. 0:01:05.400 --> 0:01:08.200 Some of that jobless claim data, some of the housing 0:01:08.280 --> 0:01:11.840 sales data, some of the industrial production data weaker. That 0:01:11.920 --> 0:01:14.240 means does a FED have room to cut later this year? 0:01:14.560 --> 0:01:17.199 All eyes on macro policy. We're currently just up only 0:01:17.280 --> 0:01:19.840 thirteen points. Though on the Nasdaq are some big laggards 0:01:19.840 --> 0:01:20.479 that ED is going. 0:01:20.360 --> 0:01:21.000 To walk us through. 0:01:21.080 --> 0:01:23.080 I'm looking at a ten year yield thought a bid. 0:01:23.080 --> 0:01:24.840 We're seeing money move into the bond market on the 0:01:24.880 --> 0:01:26.680 back of that data, even as we see yet more 0:01:26.680 --> 0:01:29.119 supply coming from the seven year side of things coming 0:01:29.120 --> 0:01:31.360 a little bit later. I'm looking at the dollar actually 0:01:31.400 --> 0:01:33.400 down versus a Japanese yen. Keep an eye on the en, 0:01:33.680 --> 0:01:36.319 and we've seen such weakness where we see intervention coming 0:01:36.319 --> 0:01:39.280 from the boj We're currently training at one hundred and sixty. 0:01:39.360 --> 0:01:40.640 Move on and have a look at what's happening in 0:01:40.640 --> 0:01:43.559 the world of bitcoin, because look, we're still at about 0:01:43.560 --> 0:01:46.240 a sixty one thousand dollar handle. We've seen some significant 0:01:46.240 --> 0:01:48.280 selling going on at the moment, but for now we're 0:01:48.280 --> 0:01:49.840 at more than a percentage point, so a little bit 0:01:49.840 --> 0:01:51.560 of risk appetite coming into crypto as well. 0:01:51.560 --> 0:01:52.400 But ED, what are you watching? 0:01:53.040 --> 0:01:54.200 I'm going to do something a bit unusual. 0:01:54.240 --> 0:01:56.600 I'm going to go right to private markets and start 0:01:56.600 --> 0:02:01.360 with this big story around spacexuation of two hundred and 0:02:01.400 --> 0:02:05.960 ten billion US dollars based on the latest tender. A 0:02:06.080 --> 0:02:09.720 tender is at where the company basically lets employees and 0:02:09.760 --> 0:02:14.720 insiders sell their shares to investors for liquidity, but because 0:02:14.760 --> 0:02:17.080 you assign a price to the shares, you're able to 0:02:17.160 --> 0:02:20.520 establish evaluation. This is a custom chart on the Bloomberg 0:02:20.639 --> 0:02:25.440 terminal that we make using those Bloomberg News reports going 0:02:25.520 --> 0:02:28.359 back many quarters of many years, but also the latest 0:02:28.440 --> 0:02:30.520 data from pitchbook, and it's a big jump. 0:02:30.600 --> 0:02:30.720 Right. 0:02:30.760 --> 0:02:33.320 One hundred and eighty billion dollars was the valuation we 0:02:33.440 --> 0:02:36.320 reported in December of last year. We're up to two 0:02:36.440 --> 0:02:38.200 hundred and ten billion. Later in the show, we're going 0:02:38.240 --> 0:02:40.440 to go to Katie Ruth, who helped break that story 0:02:40.480 --> 0:02:43.800 last night. Just there's so much to discuss around this company, 0:02:44.000 --> 0:02:46.400 but also the idea that if you're a massive growth 0:02:46.400 --> 0:02:49.840 stage name, why go public? The private markets are there 0:02:50.040 --> 0:02:53.919 to support you. Microm is the big earning story. It's 0:02:53.960 --> 0:02:56.560 really interesting. They gave this sales forecast that at the 0:02:56.600 --> 0:02:59.120 midpoint was kind of bang on what the street was 0:02:59.160 --> 0:03:02.960 looking for, really high expectations. It's a story carrow about 0:03:03.040 --> 0:03:06.520 high bandwidth memory. High bandwidth memory gets coupled with AI 0:03:06.600 --> 0:03:09.600 accelerators like in Video's H two hundred and if that's 0:03:09.639 --> 0:03:12.600 doing so well, well, why is Micron not doing so well? 0:03:12.720 --> 0:03:15.560 Because of its legacy businesses d RAM and nand or 0:03:15.600 --> 0:03:18.760 flash memory and those cyclical markets and end markets that 0:03:18.760 --> 0:03:20.760 they go into two day chart with the sock down 0:03:20.800 --> 0:03:22.480 six percent in the session right now. 0:03:22.639 --> 0:03:24.760 I mean, what's the CEO to do when they're posting 0:03:24.840 --> 0:03:28.280 revenue growth of more than eighty percent. Let's dwell on 0:03:28.320 --> 0:03:30.160 it for a moment. A closer look at a Micron 0:03:30.200 --> 0:03:32.200 after the release of their earnings report and of course 0:03:32.400 --> 0:03:35.920 the follow up for what in video is currently digesting 0:03:35.960 --> 0:03:38.920 to their AGM meeting that happened on Wednesday. In King 0:03:39.040 --> 0:03:40.680 is the person we turn to for it, and Ian, 0:03:41.000 --> 0:03:43.800 I mean go to Micron first. This feels as though 0:03:43.800 --> 0:03:47.040 they just couldn't beat the highest mark out there for 0:03:47.120 --> 0:03:47.800 the estimates. 0:03:48.640 --> 0:03:51.560 No, you're absolutely right. I mean they are predicting that 0:03:51.760 --> 0:03:54.480 revenue will be ninety percent from where it was a 0:03:54.560 --> 0:03:58.360 year ago. Albeit that's a that's a pretty easy comparison given. 0:03:58.160 --> 0:03:59.480 How bad last year was. 0:03:59.520 --> 0:04:03.080 But yes, it's all about how much real demand are 0:04:03.120 --> 0:04:05.480 you getting from AI how much of that real high 0:04:05.520 --> 0:04:09.760 margin kind of product AD's favorite type of memory chip 0:04:10.200 --> 0:04:12.280 are you shifting and making money from. 0:04:12.560 --> 0:04:14.120 So it is really interesting and thanks you to that, 0:04:14.160 --> 0:04:15.840 by the way, I even managed to convince you to 0:04:15.920 --> 0:04:18.359 embed the video we made about high bandwidth memory and 0:04:18.400 --> 0:04:18.960 your story. 0:04:19.160 --> 0:04:20.120 It's now I owe you. 0:04:21.440 --> 0:04:24.080 He did some math for us, so he basically said, 0:04:24.360 --> 0:04:26.360 we know what sales are for high bandwidth memory and 0:04:26.400 --> 0:04:29.000 the quarter gone, the current period, and what they'll be 0:04:29.560 --> 0:04:30.719 in the next fiscal year. 0:04:30.800 --> 0:04:33.279 And you can see a really clear path. 0:04:33.320 --> 0:04:36.760 That as the investment in AI infrastructure ramps so to 0:04:36.920 --> 0:04:38.360 do sales of high bandwidth memory. 0:04:38.560 --> 0:04:38.760 Yeah. 0:04:38.800 --> 0:04:42.400 No, absolutely, one hundred million dollars, which is relatively small 0:04:42.760 --> 0:04:46.440 for the quarter reported, going to multiple hundreds of millions, 0:04:46.480 --> 0:04:50.160 going to multiple billions next year. So when you're a 0:04:50.240 --> 0:04:53.960 company that has about six billion dollars of sales a quarter, 0:04:54.480 --> 0:04:56.360 that's a good sign, very good sign. 0:04:56.920 --> 0:04:59.799 I mean all of this, of course, is in comparison 0:04:59.839 --> 0:05:01.599 to and video has been churning out in the high 0:05:01.600 --> 0:05:04.920 bandwidth memory is what works in lockstep with their own chips. 0:05:05.000 --> 0:05:07.120 I'm currently looking in video down one point seven percent. 0:05:07.160 --> 0:05:10.800 It's been very volatile. What happened at the agmsay. 0:05:10.040 --> 0:05:12.680 And yeah, well, first of all, we're not allowed to 0:05:12.720 --> 0:05:15.160 call it an AGM. According to my American colleagues, that's 0:05:15.200 --> 0:05:20.360 an English thing. Yeah, Shareholders meeting apparently, but yeah, they 0:05:20.440 --> 0:05:23.560 really just came out then reiterated this pitch that they've 0:05:23.560 --> 0:05:28.400 given us this new industrial or evolution, this our products 0:05:28.400 --> 0:05:31.440 are becoming more and more vital to this giant change 0:05:31.480 --> 0:05:34.200 in the economy. So we really didn't get anything new. 0:05:34.240 --> 0:05:36.919 So if there was an expectation that perhaps Jensen would 0:05:36.920 --> 0:05:39.640 pop out some new numbers, maybe those were disappointed. But 0:05:39.720 --> 0:05:42.159 really it was just him kind of beating his fist 0:05:42.160 --> 0:05:44.200 against his chest and saying, look here we are, and 0:05:44.240 --> 0:05:45.320 look how well we've done. 0:05:45.360 --> 0:05:47.400 I feel like it was almost rebatum what they said 0:05:47.400 --> 0:05:50.120 in May twenty second at earnings in the deck basically 0:05:50.160 --> 0:05:52.320 that they published. But even so, there's just so much 0:05:52.360 --> 0:05:54.800 attention on a video right now, Blue Masie and King, 0:05:54.839 --> 0:05:57.200 who leads our chip coverage, thank you so much. 0:05:57.279 --> 0:05:59.080 Let's get some more on big tech. 0:05:59.200 --> 0:06:01.760 This month's NETS selling in the tech sector has been 0:06:01.800 --> 0:06:04.960 the largest on records since twenty seventeen, with hedge funds 0:06:05.240 --> 0:06:09.520 aggressively selling tech stocks after the rise of Nvidia. Bloomberg's 0:06:09.560 --> 0:06:12.680 j just menton joins us now for more. The markets 0:06:12.680 --> 0:06:14.840 are a funny thing. I don't want to go as 0:06:14.839 --> 0:06:18.159 far as to say fickle, because I remember you coming 0:06:18.240 --> 0:06:21.680 on the show mere months ago and talking about this fomo. 0:06:21.440 --> 0:06:22.800 Trade at the beginning of the year. 0:06:23.200 --> 0:06:26.359 Now we had this net selling, explain what the markets 0:06:26.360 --> 0:06:27.200 are doing right now? 0:06:27.320 --> 0:06:29.560 Right, So how can you have this net selling and 0:06:29.640 --> 0:06:32.440 hedge funds. But then just last week we had the 0:06:32.480 --> 0:06:34.880 Bank of America EPF our data showing that we had 0:06:34.920 --> 0:06:37.960 record flows going in tech technology stocks. So the reason 0:06:38.080 --> 0:06:40.240 is if you look at a pie chart when it 0:06:40.279 --> 0:06:43.160 comes to flows data, actually if you're looking at mutual funds, 0:06:43.160 --> 0:06:46.200 it's only roughly around twenty percent there, So you can 0:06:46.240 --> 0:06:48.559 have those record inflows into there. But that other portion, 0:06:48.600 --> 0:06:51.520 if you're looking at seventy percent, that composits of say 0:06:51.560 --> 0:06:54.760 like hedge funds, insurers obviously pinsions, so you can still 0:06:54.760 --> 0:06:58.119 have both happening, but obviously hedge funds contribute a bigger 0:06:58.160 --> 0:07:00.479 portion to that. So you can still have mutual funds 0:07:00.680 --> 0:07:03.200 having that record exposure. But hedge fund's doing something else, 0:07:03.320 --> 0:07:06.200 and it's not just technology, it's specifically also more geared 0:07:06.200 --> 0:07:07.480 toward those chip stocks. 0:07:07.600 --> 0:07:10.800 Ed It does feel that maybe hedge funds are getting 0:07:10.800 --> 0:07:13.720 more risk averse. More broadly, they're coming out of momentum. 0:07:13.840 --> 0:07:16.360 That's right, is the hedge fund trying to be the 0:07:16.400 --> 0:07:18.560 canary in the coal mine here. They like, look, retail's 0:07:18.600 --> 0:07:21.920 pouring in, mutuals pouring in, we're starting to get out now. 0:07:22.000 --> 0:07:23.880 Well, it's a great point because normally if you look 0:07:23.920 --> 0:07:25.440 at what retail is doing, it can be a bit 0:07:25.480 --> 0:07:28.000 of a contrarian indicator. To your point there, because if 0:07:28.000 --> 0:07:30.080 they're piling in and then hedge funds, if you think 0:07:30.080 --> 0:07:32.000 of that as more of, may say, the smart type 0:07:32.000 --> 0:07:34.240 of money, and how they're positioning, that does show you 0:07:34.280 --> 0:07:38.680 they are definitely moving more toward defensive areas of the market. 0:07:38.680 --> 0:07:41.080 But also a part of that is utilities, and that's 0:07:41.120 --> 0:07:44.280 also been an AI type of play because usually it's 0:07:44.320 --> 0:07:47.760 typically thought of as less volatile, more diversified if you're 0:07:47.800 --> 0:07:49.679 in kind of a slower economic regime. 0:07:49.720 --> 0:07:51.240 But obviously the economy. 0:07:50.800 --> 0:07:52.920 Has been holding up well in the latest Atlanta Fed 0:07:52.920 --> 0:07:55.800 GDP numbers for the second quarter around three percent. So 0:07:55.840 --> 0:07:58.120 you are seeing hedge funds obviously pulling out when it 0:07:58.160 --> 0:08:01.160 comes to those chip in technology type shares, but even 0:08:01.200 --> 0:08:03.679 though it's more defensive, they are going to other corners 0:08:03.720 --> 0:08:07.520 that are AI plays as well, care line including utility stocks. 0:08:08.520 --> 0:08:09.080 I get the. 0:08:11.240 --> 0:08:14.520 I guess concern of how long a rally in a 0:08:14.560 --> 0:08:17.440 particular sector or name is going to last, Right, But 0:08:17.680 --> 0:08:21.360 I have to remind myself of the incredible gains either 0:08:21.400 --> 0:08:24.160 on a year to date basis twelve month basis, and 0:08:24.200 --> 0:08:26.480 at some point you have to say, like, the going 0:08:26.520 --> 0:08:28.400 has been good, but it might not last that long. 0:08:28.480 --> 0:08:30.440 Jest I feel like we were talking about this a year 0:08:30.480 --> 0:08:32.959 ago as well, after that was also a record first 0:08:33.000 --> 0:08:34.840 half that we were looking at for the S and 0:08:34.840 --> 0:08:36.920 P five hundred and NAVSDAQ one hundred two, when everyone 0:08:36.960 --> 0:08:39.280 was questioning, then how much longer can that continue? And 0:08:39.320 --> 0:08:42.040 Gina Martin Adams over at Bloomberg Intelligence had some really 0:08:42.080 --> 0:08:44.920 great data looking at breadth in how basically what they 0:08:44.960 --> 0:08:46.640 were looking at a year ago would show that this 0:08:46.679 --> 0:08:48.760 could continue for a while, and it has. And Gina's 0:08:48.800 --> 0:08:51.160 team actually just put out data this week showing that, 0:08:51.360 --> 0:08:53.680 you know, people, I think anytime something like this happens, 0:08:54.720 --> 0:08:56.760 people like to talk about bubble type behavior. 0:08:56.760 --> 0:08:58.079 They're definitely not seeing that. 0:08:58.320 --> 0:09:00.000 With that said, though, if you're looking at the side 0:09:00.280 --> 0:09:02.560 the Philadelphia Semiconductor Index relative to the S and P 0:09:02.640 --> 0:09:05.000 five hundred right now, it's actually trading at its all 0:09:05.040 --> 0:09:07.160 time hides and even higher than above that peak in 0:09:07.200 --> 0:09:10.000 March of two thousand. So sometimes when I'm talking to sources, 0:09:10.000 --> 0:09:12.400 obviously maybe things have gotten a bit of ahead of themselves. 0:09:12.480 --> 0:09:13.440 But even though people were. 0:09:13.320 --> 0:09:16.640 Talking about in video, you know, recently entering a correction 0:09:16.800 --> 0:09:19.120 or less than or obviously off of ten percent off 0:09:19.120 --> 0:09:21.440 of that most recent high there, I mean, it was 0:09:21.559 --> 0:09:23.880 trading around five hundred and fifty dollars in the middle 0:09:23.960 --> 0:09:25.880 of January, and to look at obviously it had that 0:09:25.960 --> 0:09:28.679 stock split, so it's been quite a tear here. So 0:09:28.720 --> 0:09:31.080 sometimes if you bring up sort of the correction sort 0:09:31.080 --> 0:09:33.480 of mentality with nvideo, sometimes you will obviously get some 0:09:33.520 --> 0:09:34.920 irols from traders there. 0:09:35.120 --> 0:09:38.480 Steve Weisman calling it just a blip, just menton always 0:09:38.480 --> 0:09:39.120 great to get you on. 0:09:39.240 --> 0:09:49.120 Not the hedge funds are up to l's top private market. 0:09:49.280 --> 0:09:52.240 Self Bak's Vision fund too is investing in artificial intelligence 0:09:52.280 --> 0:09:56.079 startup Perplexity AI. Self bank will invests between ten million 0:09:56.120 --> 0:09:58.560 and twenty million dollars into the US startup, but that's 0:09:58.679 --> 0:10:01.200 as part of a larger two hundred and fifteen million 0:10:01.240 --> 0:10:05.440 funding round that triples perplexities valuation to three billion dollars, 0:10:05.679 --> 0:10:10.319 making one of the industry's most highly valued companies. Meanwhile, SpaceX, 0:10:10.960 --> 0:10:14.120 it's notching a two hundred and ten billion dollar valuations 0:10:14.160 --> 0:10:16.680 insiders cell shares and one hundred and twelve dollars a 0:10:16.679 --> 0:10:19.080 piece and a tender offer that's at according to Bloomberg sources. 0:10:19.200 --> 0:10:22.040 Now the high unexpected price boosts the value of Elmusk's 0:10:22.080 --> 0:10:24.520 space and satellite company from one hundred and eighty billion 0:10:24.559 --> 0:10:27.640 back in December's ten to offer, making the company the 0:10:27.679 --> 0:10:31.520 second most valuable startup in the world, joining smore Bloomberg's 0:10:31.559 --> 0:10:35.240 Ktie roof and it's the most valuable in the US. 0:10:36.120 --> 0:10:39.440 That's right, by answer, is the most valuable in the world. 0:10:39.480 --> 0:10:42.760 But for US, SpaceX set its own record. It surpassed 0:10:42.760 --> 0:10:45.200 its own record. It's a two hundred and ten billion 0:10:45.240 --> 0:10:47.440 out up from one hundred and eighty billion in December. 0:10:48.760 --> 0:10:53.280 Katie, there's just such intense interest in SpaceX and getting 0:10:53.280 --> 0:10:55.880 a piece of it, and I think it's worthwhile for 0:10:55.920 --> 0:10:59.720 our Bloomberg Technology audience around the world. Explain the mechanics 0:10:59.720 --> 0:11:03.560 of how tender offer works, right, why us learning from 0:11:03.600 --> 0:11:06.559 sources the share price is important in the. 0:11:06.520 --> 0:11:10.920 Math, sure, and so the tender offers. That's insiders such 0:11:10.960 --> 0:11:15.520 as employees selling their shares to other private investors. And 0:11:15.600 --> 0:11:19.440 so the tender offer is different than a secondary where 0:11:19.440 --> 0:11:22.080 the people are doing one off trades. The tender offer 0:11:22.120 --> 0:11:25.080 is more meaningful because it means the company signed off 0:11:25.080 --> 0:11:28.040 on this valuation and that they're doing a large transaction. 0:11:28.440 --> 0:11:31.360 You know, we're hundreds of millions of dollars of shares, 0:11:31.600 --> 0:11:34.960 I mean hundreds of millions of dollars trade hands. And 0:11:35.040 --> 0:11:41.720 so this is you know, meaningful, you know for Silicon Valley, 0:11:41.800 --> 0:11:44.600 you know, when they're looking at prices and seeing that, 0:11:45.040 --> 0:11:47.839 you know, companies can still raise at high prices right 0:11:47.880 --> 0:11:51.320 now even if they're not AI and IT, but you know, 0:11:51.360 --> 0:11:54.120 it sets surpasses SpaceX is on record. 0:11:54.520 --> 0:11:58.640 I think that's Katie Ruth late night but important reporting 0:11:58.720 --> 0:12:02.679 from you as the headline, and thought, yep, saw this 0:12:02.720 --> 0:12:04.120 coming a little bit big one. 0:12:04.240 --> 0:12:05.080 Okay, another story. 0:12:05.080 --> 0:12:08.120 We're watching shares of Amazon right now as it plans 0:12:08.120 --> 0:12:12.360 to launch an online storefront for low price apparel and 0:12:12.520 --> 0:12:16.000 home goods, marking the company's biggest push to counter the 0:12:16.080 --> 0:12:19.680 rise of discount competitors like Timu and she In. The 0:12:19.679 --> 0:12:22.920 company's plans were outlined in slides posted to websites for 0:12:23.080 --> 0:12:27.440 third party Chinese sellers showing Amazon shipping goods directly to 0:12:27.520 --> 0:12:32.800 customers from China. Okay, some breaking news. Just moments ago, 0:12:33.200 --> 0:12:38.160 California police have raided a southern California warehouse filled with 0:12:38.280 --> 0:12:42.160 allegedly stolen merchandise they say likely would have ended up 0:12:42.240 --> 0:12:48.120 on online marketplaces run by Amazon and other retailers. Bloomberg Spencer, 0:12:48.240 --> 0:12:53.000 soaper on the ground with law enforcement, you have been 0:12:53.080 --> 0:12:55.800 witnessed to that raid, Spencer, Just give us the basics 0:12:55.840 --> 0:12:57.959 of where you are and what's happened. 0:12:58.160 --> 0:13:01.000 Yes, So, we're about thirty miles south of Los Angeles 0:13:01.000 --> 0:13:04.120 and Santa Ana, California. We're just off Interstate five at 0:13:04.120 --> 0:13:07.920 a warehouse behind me that's actually a retail liquidation center, 0:13:08.160 --> 0:13:11.120 which you know, can be legitimate businesses that get you know, 0:13:11.240 --> 0:13:15.040 scratched and dented merchandise and returns and then they go 0:13:15.080 --> 0:13:18.679 about selling it. But this rate that just happened a 0:13:18.679 --> 0:13:21.800 little more than an hour ago. California Highway Patrol's Cargo 0:13:21.840 --> 0:13:25.640 Theft Division had information that there could be stolen merchandise inside. 0:13:25.840 --> 0:13:27.920 They got a search mort and they executed that search 0:13:27.960 --> 0:13:30.319 mort this morning. So we had about a dozen officers 0:13:30.320 --> 0:13:33.440 storm on the scene, they secured the facility and what 0:13:33.480 --> 0:13:35.520 they're doing right now is going through It looks like 0:13:35.559 --> 0:13:39.560 an order house. There's like boxes from Florida ceiling of 0:13:39.280 --> 0:13:43.400 all kinds of stuff. Vacuum cleaners, had food, you know, 0:13:43.480 --> 0:13:45.920 air fryers, all kinds of things that you can imagine 0:13:45.960 --> 0:13:48.400 they're trying to sift through all that stuff to determine 0:13:48.440 --> 0:13:50.600 if anything's been stolen and if they could trace that 0:13:50.679 --> 0:13:52.800 back to a to a previous theft. 0:13:53.640 --> 0:13:56.240 I mean, this is a big operation. They've got you 0:13:56.360 --> 0:13:59.199 on board to witness it. This clear is important to them. 0:13:59.200 --> 0:13:59.640 Spencer. 0:13:59.720 --> 0:14:04.679 How economically important is it to companies that are losing 0:14:04.720 --> 0:14:05.800 the goods like this? 0:14:08.120 --> 0:14:11.320 Yeah, that's a great question. And everyone's familiar shoplifting because 0:14:11.320 --> 0:14:13.880 you see like cell phone videos of people loading up 0:14:13.880 --> 0:14:16.000 a shopping part full of stuff and running out of 0:14:16.040 --> 0:14:18.720 the store. But this is far more serious and also 0:14:18.760 --> 0:14:22.720 more sophisticated, where they're stealing entire cargo containers and one 0:14:22.760 --> 0:14:25.080 hall could be anywhere from a couple hundred thousand to 0:14:25.160 --> 0:14:28.960 up to twenty million of cargo. So the losses get 0:14:29.040 --> 0:14:31.400 very high, very quickly, and it's really been on the rise. 0:14:32.320 --> 0:14:34.560 The number of cargo thefts reported in the US in 0:14:34.600 --> 0:14:36.840 the first quarter of this year were nearly one thousand, 0:14:37.120 --> 0:14:40.040 and that was up almost fifty percent from a year earlier, 0:14:40.240 --> 0:14:42.120 and it's just been going up with no end in sight. 0:14:42.920 --> 0:14:47.920 The fees are getting more sophisticated. They're impersonating legitimate trucking companies, 0:14:48.320 --> 0:14:51.880 you know, going to warehouses picking up entire truckloads of 0:14:51.960 --> 0:14:56.000 inventory and like they're supposed to be the ones picking 0:14:56.000 --> 0:14:58.240 it up and taking off with it. And then you know, 0:14:58.400 --> 0:15:01.280 a delivery's never made where it'supp and that's when they 0:15:01.280 --> 0:15:04.800 discovered the theft was made, like days later. So it's 0:15:04.840 --> 0:15:06.720 a really big problem that folks a lot of damage. 0:15:08.400 --> 0:15:10.760 Bloomberg Spencer Sober, who is it on the ground in 0:15:10.800 --> 0:15:14.880 southern California, has just accompanied law enforcement in a raid 0:15:15.120 --> 0:15:20.160 where they seed allegedly stolen merchandise bound for Amazon. That's 0:15:20.160 --> 0:15:23.320 the first for this program, I think, in probably this network. 0:15:23.520 --> 0:15:25.160 Right coming up on the show, we're going to be 0:15:25.200 --> 0:15:28.800 joined by Jeff Thomas, executive vice president of Nasdak's Corporate 0:15:28.840 --> 0:15:31.960 Platforms business, for his read on the IPO landscape. I'm 0:15:31.960 --> 0:15:33.600 going to take a short break. Stay with us because 0:15:33.600 --> 0:15:47.720 we will be right back. This is Bloomberg Technology, Time 0:15:47.800 --> 0:15:50.640 for Talking Tech and first st up Open Ai makes 0:15:50.680 --> 0:15:54.040 a deal with Time. The maker of track GPT has 0:15:54.080 --> 0:15:57.040 partnered with the magazine in a multi year agreement that 0:15:57.120 --> 0:16:00.760 would allow access to current and historic comment. In return, 0:16:01.040 --> 0:16:04.200 Chat GPT user queries will link answers back to the 0:16:04.240 --> 0:16:07.600 original source on Time dot Com and Time will also 0:16:07.640 --> 0:16:11.160 have access to openaised tech. Plus, the US, Japan and 0:16:11.240 --> 0:16:14.880 South Korea make a pledge for stronger tech relations. The 0:16:14.960 --> 0:16:17.680 three countries say they'll work closely on building out a 0:16:17.720 --> 0:16:21.160 more resilient supply chain in order to address weaknesses in 0:16:21.240 --> 0:16:24.320 key tech sectors like semiconductors in AI. The move comes 0:16:24.440 --> 0:16:28.720 amid rapid expansion and competition from China in the chip sector, 0:16:29.000 --> 0:16:31.960 and Webtoon Comics has raised three hundred and fifteen million 0:16:31.960 --> 0:16:35.840 dollars in its USIPO, topping the marketed range. The online 0:16:35.880 --> 0:16:39.480 comics company sold fifteen million shares after marketing them for 0:16:39.560 --> 0:16:42.880 eighteen to twenty one dollars each. According to Bloomberg calculations, 0:16:43.080 --> 0:16:45.800 Webtoon has a market value of about two point seven 0:16:45.840 --> 0:16:46.680 billion dollars at. 0:16:46.640 --> 0:16:47.680 That IPO price. 0:16:47.840 --> 0:16:51.360 Bloomberg spoke with COO and CFO of webtoon David Lee. 0:16:51.520 --> 0:16:53.080 Here's what he had to say on how they'll use 0:16:53.120 --> 0:16:54.440 that cash. 0:16:54.520 --> 0:16:57.120 We'll use this to speed up and deepen the tools 0:16:57.120 --> 0:16:59.880 we give any creator globally to be a global hit. 0:17:00.600 --> 0:17:04.160 Many of the stories that you've come to see on Amazon, Primer, Netflix, 0:17:04.200 --> 0:17:06.879 the top show on Netflix today, the eighth show, is 0:17:06.960 --> 0:17:10.119 powered by our platform, and so you'll see us continue 0:17:10.160 --> 0:17:12.520 to delight more and more consumers here in the United 0:17:12.560 --> 0:17:14.960 States and the rest of the world and invest behind 0:17:14.960 --> 0:17:15.600 our creators. 0:17:17.480 --> 0:17:19.840 We want to talk more about listings right now and 0:17:19.880 --> 0:17:22.080 the international flavor of them. Jeff Thomas is with US 0:17:22.080 --> 0:17:26.240 Executive Vice president Nasdak's Corporate Platforms business. We're going to 0:17:26.280 --> 0:17:30.000 be assessing the IPO landscape, and Jeff, I mean today 0:17:30.160 --> 0:17:33.400 a big day for webtun and interestingly, South Korea base 0:17:33.560 --> 0:17:35.639 never is the company to sort of backs it, so 0:17:35.960 --> 0:17:37.680 we're see more international companies coming to. 0:17:37.600 --> 0:17:38.280 The US to list. 0:17:39.240 --> 0:17:41.960 That's right on NASZAC. This year, we've had sixty four 0:17:41.960 --> 0:17:45.720 IPOs and nearly half of those have come from international, 0:17:46.080 --> 0:17:48.640 and so we've had web Tune from Korea, we had 0:17:48.680 --> 0:17:50.680 super High out of Asia, we had Merrickside of the 0:17:50.800 --> 0:17:53.639 UK for ovial out of Spain all looking to come 0:17:53.680 --> 0:17:56.800 to the US capital markets because frankly, they can get 0:17:56.840 --> 0:17:59.119 a better valuation and the capital markets are wider and 0:17:59.160 --> 0:17:59.920 deeper here in the USA. 0:18:01.520 --> 0:18:05.040 That's not uniformly true though, right The chat around Sheian 0:18:05.320 --> 0:18:08.919 is so interesting to me. They seem to be looking 0:18:08.960 --> 0:18:12.920 at London based on the political tension between the US 0:18:13.000 --> 0:18:15.360 and China. That was a headline that I think crosswile 0:18:15.359 --> 0:18:18.040 I was on vacation. I was very surprised to see it. 0:18:18.960 --> 0:18:21.320 What would the factor in that case be to your mind? 0:18:21.680 --> 0:18:24.560 You know, I think there's always unique aspects to every deal. 0:18:24.640 --> 0:18:26.680 What we really focus on here at Nasdaq is trying 0:18:26.720 --> 0:18:29.040 to provide a great platform to support all of our 0:18:29.080 --> 0:18:32.120 companies from across the world. That includes having a great 0:18:32.160 --> 0:18:36.520 trading platform, supporting companies with our investor relations insights, and 0:18:36.560 --> 0:18:38.640 really helping them on their sustainability journeys. 0:18:38.960 --> 0:18:43.080 Are there fewer Chinese companies though, eyeing the US, I'm sorry, 0:18:43.320 --> 0:18:46.560 Are there fewer Chinese related names eyeing the US to 0:18:46.560 --> 0:18:47.080 go public? 0:18:47.520 --> 0:18:48.840 You know, I think we still see a lot of 0:18:48.880 --> 0:18:51.960 strong demand from around the globe. It's not just China 0:18:52.040 --> 0:18:53.560 over in Asia, but we have a lot of interest 0:18:53.600 --> 0:18:56.000 out of Southeast Asia, you know, not just Korea like 0:18:56.280 --> 0:18:59.600 where Webtoon is from, but Vietnam, Indonesia, Lots of other 0:18:59.640 --> 0:19:01.840 companies countries over in Asia are also looking to come 0:19:01.880 --> 0:19:02.359 to the US. 0:19:03.359 --> 0:19:06.520 Yeah, vin Fast is an interesting example of a name 0:19:06.520 --> 0:19:10.280 from that region in this market. I trying to get 0:19:10.440 --> 0:19:13.080 a bigger picture sense of what's going on, Like we 0:19:13.160 --> 0:19:16.200 had this pocket of listings in September of last year, 0:19:16.440 --> 0:19:19.280 and we started the year with some energy and we're 0:19:19.320 --> 0:19:22.119 showing a graphic on the screen now of all the 0:19:22.200 --> 0:19:26.040 VC back names that we've waiting for ages to give 0:19:26.119 --> 0:19:29.000 us a signal ongoing public Where are we in this 0:19:29.080 --> 0:19:31.600 market broadly at this moment in time, Jeff. 0:19:32.000 --> 0:19:35.040 We do have a very strong pipeline of VC backed 0:19:35.080 --> 0:19:36.960 tech companies that are looking to go public over i'd 0:19:37.000 --> 0:19:39.960 say the next twelve to eighteen months. This year, the 0:19:40.000 --> 0:19:43.440