WEBVTT - Black Friday Special 0:00:02.720 --> 0:00:10.600 Bloomberg Audio Studios, podcasts, radio news. You're listening to the 0:00:10.600 --> 0:00:14.560 Bloomberg Intelligence Podcast. Catch us live weekdays at ten am 0:00:14.640 --> 0:00:17.880 Eastern on Apple, Coarclay, and Android Auto with the Bloomberg 0:00:17.920 --> 0:00:21.000 Business App. Listen on demand wherever you get your podcasts, 0:00:21.360 --> 0:00:23.520 or watch us live on YouTube. 0:00:24.320 --> 0:00:27.440 On this Friday after Thanksgiving, Jeff Chang joins us. He's 0:00:27.480 --> 0:00:31.920 a president of vest Financial. You know, it's great, Jeff 0:00:31.960 --> 0:00:33.320 to have you here. I'm looking at the S and 0:00:33.320 --> 0:00:35.919 P five hundred year to date up fifteen percent. I've 0:00:35.960 --> 0:00:40.240 got the NASHTAC up twenty percent. Boy, that is solid performance. 0:00:40.400 --> 0:00:42.199 I don't care where you are, who you are, What 0:00:42.240 --> 0:00:43.360 do you do for twenty twenty six? 0:00:43.400 --> 0:00:43.800 Do you think? 0:00:45.200 --> 0:00:46.200 Yeah, great to be here. 0:00:46.560 --> 0:00:49.120 You know, I still think the biggest driver of growth 0:00:49.240 --> 0:00:52.400 is going to be AI. It's also what's interesting now, 0:00:52.400 --> 0:00:55.200 it's also going to be the greatest source of volatility. 0:00:55.480 --> 0:00:57.640 I mean, you can even see today with the CMB 0:00:57.760 --> 0:01:00.200 and data centers like this is really going to be 0:01:00.400 --> 0:01:03.760 what's going to be driving the market overall into the 0:01:03.800 --> 0:01:06.480 next year. I think also, you know, on a larger basis, 0:01:06.520 --> 0:01:11.160 you're kind of weighing between kind of the macro factors, cooling, 0:01:11.160 --> 0:01:14.840 inflation AI, but also you know, earnings catching up to 0:01:15.240 --> 0:01:18.640 valuations what we've seen today, you know, with multiples being 0:01:18.720 --> 0:01:20.520 on the higher end of the spectrum. 0:01:21.080 --> 0:01:23.800 Yeah, so this AI trade, I mean it's definitely changing. 0:01:23.800 --> 0:01:26.319 There's rotation involved, right, I mean, do you still stick 0:01:26.360 --> 0:01:28.520 with the nvideos or do you start looking at some 0:01:28.600 --> 0:01:30.680 of the other companies like the alphabets now that are 0:01:30.800 --> 0:01:32.760 very involved with our TPUs. 0:01:33.520 --> 0:01:37.319 Yeah. I think there's definitely growing competition, but I think 0:01:37.360 --> 0:01:40.160 when you look at Nvidia, it's still the bell weather 0:01:40.319 --> 0:01:44.319 for AI hardware. You know, from there because when you 0:01:44.360 --> 0:01:46.560 look at AI and the foundational parts of it, you're 0:01:46.560 --> 0:01:49.480 looking at you know, compute, data centers, networking and cloud 0:01:49.560 --> 0:01:53.520 and cooling. Isn't that as well? But I think when 0:01:53.560 --> 0:01:56.240 you look at Nvidia, it's sits very kind of right 0:01:56.240 --> 0:01:59.760 in the center as far as foundational parts of a 0:02:00.720 --> 0:02:04.440 given that you know, one thing is that they've also 0:02:04.680 --> 0:02:06.640 if you look at the numbers and four guidance has 0:02:06.680 --> 0:02:09.040 been pretty strong. I do think where you start to 0:02:09.040 --> 0:02:10.920 see a little bit of volatility is the idea that 0:02:10.919 --> 0:02:13.040 competition is coming in. And so if you start to 0:02:13.040 --> 0:02:15.840 look at you know, the likes of Microsoft really planting 0:02:15.880 --> 0:02:18.480 the flag and cloud, and then like you said, Google 0:02:18.480 --> 0:02:21.440 and Alphabet coming in into the AI chip space as well, 0:02:21.480 --> 0:02:24.840 So we can't see some volatility there, but mostly the 0:02:24.880 --> 0:02:27.640 dominance of Nvidia we'll see is going to be pretty 0:02:27.639 --> 0:02:28.800 strong into twenty twenty six. 0:02:29.320 --> 0:02:31.680 Fanny, I think I'm oh for a lifetime trying to 0:02:31.720 --> 0:02:32.920 call the top of a bubble. 0:02:33.160 --> 0:02:35.000 You know, I just never. 0:02:35.240 --> 0:02:37.080 Possibly won't even try doing that both. 0:02:37.120 --> 0:02:41.480 I was selling stock Boy cranking at IPO's March of 0:02:41.520 --> 0:02:44.240 two thousand with a vengeance and no idea. Yeah, like 0:02:44.520 --> 0:02:48.200 five minutes later it was over. So how do you 0:02:48.280 --> 0:02:50.520 and how do investors in general? Jeff do you think? 0:02:50.800 --> 0:02:53.320 How do you think about a bubble? And are we 0:02:53.560 --> 0:02:55.280 in a bubble? Are we at the top of the bubble? 0:02:55.280 --> 0:02:56.240 How do you think about that? 0:02:57.960 --> 0:03:00.960 I don't think as far as like you've probably seen 0:03:01.080 --> 0:03:03.720 recently in the news of soft Bank and the like 0:03:03.800 --> 0:03:06.840 Superior Teal selling their positions in Nvidia, I actually don't 0:03:06.880 --> 0:03:09.400 think that's an indication of people getting out due to 0:03:09.480 --> 0:03:12.400 a bubble. I think, sure, are the are the AI 0:03:12.440 --> 0:03:15.520 stocks in hyper skillers expensive? Yeah? I could you can 0:03:15.520 --> 0:03:17.880 make an argument for that, But when you're thinking about 0:03:18.000 --> 0:03:20.720 AI and the idea that it might be a bubble. 0:03:20.800 --> 0:03:23.600 This is very different than something like you know, if 0:03:23.600 --> 0:03:26.320 you were to look at crypto, I would say that 0:03:26.760 --> 0:03:31.000 this is a structural shift. Now, selectivity matters where you're 0:03:31.040 --> 0:03:33.280 actually going to be in AI. But I think what 0:03:33.280 --> 0:03:36.280 we're seeing is a generational shift as far as you know, 0:03:36.320 --> 0:03:39.720 because AI is going to diffuse into mainstream as far 0:03:39.720 --> 0:03:45.080 as anywhere from logistics to enterprise software, you know, healthcare, 0:03:45.160 --> 0:03:45.840 defense is. 0:03:45.840 --> 0:03:47.000 Going to go everywhere there. 0:03:47.040 --> 0:03:49.960 I think where you're seeing a lot of people misunderstanding 0:03:50.080 --> 0:03:52.720 is and when we've seen this story play out before, 0:03:53.280 --> 0:03:56.200 is the idea that, okay, we've seen a huge amount 0:03:56.200 --> 0:03:59.280 of investment into AI, uh you know, and you know, 0:03:59.400 --> 0:04:02.480 hundreds of bill dollars, where as in the actual earnings 0:04:02.520 --> 0:04:05.360 you're talking to twenty you know, twenty five thirty billion 0:04:05.960 --> 0:04:08.240 in actual earnings. But this is where you start to 0:04:09.200 --> 0:04:11.040 if you pull back the curtain a little bit. Keep 0:04:11.080 --> 0:04:13.920 in mind your earnings is based off of accounting depreciation, 0:04:14.080 --> 0:04:18.120 which tends to front load your expenses, and it doesn't 0:04:18.320 --> 0:04:20.599 account for the earnings potential over the long term at 0:04:20.680 --> 0:04:23.320 least seen this play out before. If you look at 0:04:23.320 --> 0:04:26.080 going back, like fiber optics, there are billions of dollars 0:04:26.080 --> 0:04:30.120 on front end investment, but we hadn't seen the trillions 0:04:30.120 --> 0:04:32.560 of dollars of earnings potential that came out in many 0:04:32.640 --> 0:04:35.320 years afterwards. So you know, like they always say, you know, 0:04:35.440 --> 0:04:37.680 history doesn't repeat itself, but it does rhyme. I think 0:04:37.720 --> 0:04:40.480 what you're seeing here is kind of the fiber optic 0:04:40.520 --> 0:04:44.200 Internet type situation. We're really fundamentally changing, you know, how 0:04:44.240 --> 0:04:45.359 we do business going forward. 0:04:45.400 --> 0:04:47.840 So you say, the foundation of long term AI is sound, 0:04:47.880 --> 0:04:49.720 but where do the revenues come from? And what are 0:04:49.760 --> 0:04:52.160 you projecting out in terms of revenue for these companies 0:04:52.200 --> 0:04:54.040 that are spending a fortune on AI. 0:04:55.400 --> 0:05:00.400 Yeah, So it like they said, like selectivity matters. So 0:05:00.480 --> 0:05:04.200 if you're talking about you know, the Microsoft metals, Metas, 0:05:04.240 --> 0:05:07.359 the Googles, and the videos of the world, those they 0:05:07.400 --> 0:05:10.800 are going to touch every part of AI, whether or not, 0:05:10.880 --> 0:05:12.839 whether or not the earnings are going to be generated 0:05:12.880 --> 0:05:15.960 from industrials, whether you know, industrial animation, whether it's going 0:05:16.000 --> 0:05:19.040 to be generated from healthcare, they're going to be at 0:05:19.080 --> 0:05:24.200 the center. Given that the core foundation being cloud, compute, data. 0:05:23.960 --> 0:05:25.040 Centers, and networking. 0:05:25.160 --> 0:05:27.839 So that's really where if you're looking as a long 0:05:27.960 --> 0:05:31.839 term investor, who are where the earnings are more sustainably 0:05:32.040 --> 0:05:37.040 and more higher probability of actually realization is. 0:05:37.000 --> 0:05:38.080 Being at kind of that center. 0:05:38.160 --> 0:05:39.880 I think where you start to get a little bit dicey, 0:05:40.000 --> 0:05:43.279 is you know, trading on the hype, going for these 0:05:43.320 --> 0:05:47.159 types of moonshot type trades where you're looking at small 0:05:47.240 --> 0:05:51.280 cap stocks and maybe in small robotics or so on 0:05:51.279 --> 0:05:52.800 and so forth. That's where you start to get a 0:05:52.839 --> 0:05:55.279 little bit of dicey as far as will we see 0:05:55.320 --> 0:05:58.159 that earnings realization to justify the valuations. 0:05:58.440 --> 0:06:00.840 You know, Vonnie, I remember the beginning of this whole 0:06:01.400 --> 0:06:04.800 AI discussion maybe three years ago. Gene Monster from deep 0:06:04.800 --> 0:06:07.440 Water Asset Management, to me is one of the best 0:06:07.480 --> 0:06:10.880 technology analysts on Wall Street. He said, Hey, think about 0:06:10.880 --> 0:06:14.160 a continuum of what's important. Let's put electricity like from 0:06:14.279 --> 0:06:16.920 zero to one hundred. Electricity he puts it ninety five. 0:06:17.440 --> 0:06:21.120 The Internet he puts at seventy AI he put it 0:06:21.240 --> 0:06:24.160 like ninety right there. I mean that, So every time 0:06:24.160 --> 0:06:26.800 I think about, jeez, maybe we're kind of in a ball. 0:06:26.920 --> 0:06:30.440 I know. He was so right. So, Jeff, where do 0:06:30.480 --> 0:06:32.800 we go from here? What's the next way to play it. 0:06:32.839 --> 0:06:35.680 If I've played out my Nvidia trade, maybe I've played 0:06:35.680 --> 0:06:39.000 out my Microsoft Microsoft trade on AI. What's the next 0:06:39.880 --> 0:06:42.520 leg do you think for this whole investment thesis. 0:06:43.920 --> 0:06:47.120 Yeah, so this is very similar to let's say, in 0:06:47.200 --> 0:06:49.960 nineteen ninety nine and two thousand in the tech boom, 0:06:50.040 --> 0:06:52.080 that a lot of these pumply traded companies people were 0:06:52.080 --> 0:06:55.640 taking kind of bets here and there. I actually believe 0:06:55.640 --> 0:06:58.120 if you then really kind of fast forward the tape, 0:06:58.120 --> 0:07:01.600 you'll notice that the real winners, the companies that really 0:07:01.600 --> 0:07:03.440 want to kind of the Internet boom. The facebooks of 0:07:03.480 --> 0:07:06.000 the world, the Netflixes of the world, the Airbnb's of 0:07:06.000 --> 0:07:08.359 the world, they weren't around. They were in startup mode. 0:07:08.400 --> 0:07:11.800 So I think a lot of folks that are trying 0:07:11.800 --> 0:07:14.640 to play the AI trade, a lot of the facebooks 0:07:14.680 --> 0:07:18.120 in AI of tomorrow are going to be in venture 0:07:18.200 --> 0:07:21.480 They're going to be in early stage or middle stage 0:07:21.480 --> 0:07:25.240 startups that are really being able to innovate, move fast, 0:07:25.400 --> 0:07:28.320 kind of break things kind of mentality. I think, like 0:07:28.440 --> 0:07:32.440 I said, the next wave, it's not publicly traded, especially 0:07:32.440 --> 0:07:34.400 in the AI space. I think, like I said, the 0:07:34.440 --> 0:07:37.640 foundational parts, like you know, the hyperscalers and the videos 0:07:37.680 --> 0:07:39.920 of the world are publicly traded, but I think a 0:07:39.960 --> 0:07:43.640 lot of the next wave of software and usage cases 0:07:43.880 --> 0:07:47.440 across all industries are actually in private markets right now. 0:07:47.520 --> 0:07:49.200 All right, well, Jeff, we have to leave it there, 0:07:49.280 --> 0:07:51.480 but thank you so much for joining us today. And 0:07:51.520 --> 0:07:53.720 I know you're in Las Vegas, so if you're putting 0:07:53.720 --> 0:07:58.480 anything putting on black today that is best Financial President 0:07:58.560 --> 0:07:59.600 and co founder. 0:07:59.400 --> 0:08:02.880 Jeff, stay with us. We're from Bloomberg Intelligence coming. 0:08:02.800 --> 0:08:03.600 Up there for this. 0:08:07.200 --> 0:08:10.920 You're listening to the Bloomberg Intelligence podcast. Catch us live 0:08:11.000 --> 0:08:14.040 weekdays at ten am Eastern on Apple, Cocklay and Android 0:08:14.080 --> 0:08:17.400 Auto with the Bloomberg Business app. Listen on demand wherever 0:08:17.440 --> 0:08:20.560 you get your podcasts, or watch us live on YouTube. 0:08:21.360 --> 0:08:22.840 So let's bring in our next guest to talk a 0:08:22.880 --> 0:08:26.160 little shopping. We have Julie Bornstein. She is the CEO 0:08:26.360 --> 0:08:29.360 of Daydream, which is an AI agent for fashion retail 0:08:29.400 --> 0:08:29.960 in particular. 0:08:30.080 --> 0:08:31.440 Julie, thank you so much for joining. 0:08:31.480 --> 0:08:34.440 First, just explain a little bit what a fashion agent 0:08:34.480 --> 0:08:35.480 for retail can do. 0:08:35.480 --> 0:08:37.760 For me when I go online. 0:08:38.000 --> 0:08:40.520 Yes, well, ultimately the goal is to be a personal 0:08:40.559 --> 0:08:42.080 stylist in your pocket. 0:08:42.520 --> 0:08:45.199 Today. What we do is we allow you to let. 0:08:45.080 --> 0:08:47.960 Us know what you're looking for using whatever you want to. Say, 0:08:48.120 --> 0:08:52.800 you have a Christmas party with your office in a 0:08:53.080 --> 0:08:55.560 bar in New York City, and we can help you 0:08:55.600 --> 0:08:59.360 find what you're looking for. We make it easier to shop, 0:08:59.640 --> 0:09:02.720 and we also allow you to post a picture and 0:09:02.760 --> 0:09:04.640 then we can help you find something that looks like that. 0:09:05.559 --> 0:09:08.400 So I don't know where to go here, Julie. 0:09:08.559 --> 0:09:13.560 But of shoppers say they're using AI tools for holiday shopping. 0:09:13.600 --> 0:09:16.520 That's according to a horse pull for MasterCard. 0:09:16.920 --> 0:09:19.839 Are retailers are they ready for that? They are they 0:09:19.920 --> 0:09:22.280 trying to take advantage of that? How are they performing here? 0:09:22.720 --> 0:09:26.080 It's early days for the retailers, but they are starting 0:09:26.120 --> 0:09:29.800 to learn how to both appear through some of these 0:09:30.760 --> 0:09:34.600 different chat surfaces and they are also trying to figure 0:09:34.600 --> 0:09:36.960 out how to use AI to make the customer experience 0:09:37.000 --> 0:09:39.400 better on their sites. Some of them are doing interesting 0:09:39.440 --> 0:09:42.680 things get up, H and M. They're also participating with 0:09:42.760 --> 0:09:45.360 us Daydreams. So because we're sort of the first AI 0:09:45.800 --> 0:09:49.920 shopping platform, they can partner with us and their show 0:09:50.000 --> 0:09:52.600 up as customers are explaining what it is that they're 0:09:52.640 --> 0:09:54.679 looking for in a whole new way. Julie. 0:09:54.720 --> 0:09:56.520 We always hear when it comes to AI that is 0:09:57.040 --> 0:09:59.720 all about the prompt, right, So what are customers doing 0:09:59.760 --> 0:10:01.280 and how should we prompt better? 0:10:02.400 --> 0:10:03.320 It's a great question. 0:10:03.400 --> 0:10:06.160 I mean we see prompts that are everything from I'm 0:10:06.200 --> 0:10:08.080 going to a wedding and I want to wear a 0:10:08.080 --> 0:10:11.079 pink dress, but all look like a cupcake too. I'm 0:10:11.120 --> 0:10:13.320 going to a wedding and I want to wear a 0:10:13.360 --> 0:10:17.440 revenge dress in the selt burn. So we have lots 0:10:17.440 --> 0:10:18.040 of different kinds. 0:10:18.080 --> 0:10:19.760 I want to see what the hallucinations are for those 0:10:19.800 --> 0:10:20.160 of users. 0:10:20.400 --> 0:10:23.800 Yeah, exactly what the cupcake dress looks like. 0:10:24.120 --> 0:10:27.240 People are very creative and the truth is that every 0:10:27.480 --> 0:10:29.840 consumers are just learning how to prompt, and so part 0:10:29.880 --> 0:10:32.200 of what we do is also give them ideas so 0:10:32.200 --> 0:10:34.000 that if they're starting to look, and then once they 0:10:34.040 --> 0:10:36.720 get used to it, people will write very long things 0:10:36.720 --> 0:10:38.880 with very descriptive details of what they're looking for. 0:10:39.480 --> 0:10:43.280 I've seen some technology use some apps on the iPhone, 0:10:43.720 --> 0:10:47.079 take a screenshot of something and then it brings you 0:10:47.240 --> 0:10:49.480 right into a shopping environment. 0:10:49.920 --> 0:10:52.480 Talk to us about where that is right now, where 0:10:52.520 --> 0:10:52.960 that's going. 0:10:53.640 --> 0:10:55.440 Yeah, that's going to just get better and better. 0:10:55.480 --> 0:10:58.640 I think the idea of being able to screenshot something 0:10:58.760 --> 0:11:01.880 on the new iOS allows you to instantly you don't 0:11:01.880 --> 0:11:04.400 even have to open an app bring up results from 0:11:04.520 --> 0:11:07.160 any of the apps that you have already downloaded. So 0:11:07.200 --> 0:11:10.000 if you have Daydream downloaded on your phone and you 0:11:10.080 --> 0:11:13.280 screenshot anything from Instagram or as you're walking around and 0:11:13.320 --> 0:11:15.960 you see someone wearing something you like, you have the 0:11:16.000 --> 0:11:19.640 ability instantly to pull up the results that are closest 0:11:19.640 --> 0:11:22.880 to that product, and if that product still exists, you 0:11:22.880 --> 0:11:24.080 can get that exact product. 0:11:24.080 --> 0:11:26.360 So it's pretty cool and it's a pretty quick way. 0:11:26.480 --> 0:11:29.520 And what we're seeing is younger generation gen Z is 0:11:29.760 --> 0:11:33.559 very higher use case for that. They're just used to 0:11:33.640 --> 0:11:36.000 being able to snap anything and then be able to 0:11:36.320 --> 0:11:37.400 find what they're looking for. 0:11:38.280 --> 0:11:42.760 So if I screenshot something, it sends a whole load 0:11:42.800 --> 0:11:44.480 of information into the background of my phone. 0:11:44.559 --> 0:11:44.960 Is that right? 0:11:45.000 --> 0:11:46.520 That sounds a little dangerous to me. It means I 0:11:46.520 --> 0:11:48.000 should probably stop screenshotting things. 0:11:49.200 --> 0:11:52.360 No, it's really if you choose to then use the 0:11:52.480 --> 0:11:56.360 search mechanism for it. So in general, screenshots are not 0:11:56.600 --> 0:11:59.520 you know, nothing's happening with them until you decide to 0:11:59.559 --> 0:12:02.000 do something with that screenshot. So you know, if you're 0:12:02.040 --> 0:12:03.720 looking for a product, it's pretty safe. 0:12:04.880 --> 0:12:09.360 So all right, how about this warm but not bulky 0:12:09.400 --> 0:12:14.160 coat under three hundred dollars. Where is the AI thingamajig 0:12:14.280 --> 0:12:14.880 going to take me? 0:12:16.200 --> 0:12:18.480 Well, on daydream, it's going to take you to a 0:12:18.480 --> 0:12:21.800 set of results that match that kind of query, and 0:12:22.120 --> 0:12:25.079 then we'll see lots of results from around the web 0:12:25.440 --> 0:12:28.000 and we will once you find what you're looking for, 0:12:28.040 --> 0:12:31.120 you link out to the brand or the retailer that 0:12:31.200 --> 0:12:33.920 sells that product. So similar to the way Google works, 0:12:34.160 --> 0:12:36.840 we're basically sort of a search and discovery platform that 0:12:36.880 --> 0:12:39.160 then helps you find the retailer to buy from. 0:12:39.200 --> 0:12:41.800 All right, well, in the world of search, it's search 0:12:42.360 --> 0:12:46.160 optimization type thing. Is that is there a similar type 0:12:46.240 --> 0:12:47.640 thing here in the world of AI. 0:12:48.800 --> 0:12:51.760 So it can depend on what the business model is. 0:12:51.800 --> 0:12:54.040 In our case, we are totally focused on finding you 0:12:54.040 --> 0:12:57.040 the best product for you that matches both the query 0:12:57.320 --> 0:13:00.160 and your personal preferences as we learn about you, and 0:13:00.200 --> 0:13:04.240 so it's not an issue of whatever you know, whoever 0:13:04.320 --> 0:13:08.000 pays the most gets the way to show you what 0:13:08.080 --> 0:13:10.360 their product is. But in some cases, you know, there's 0:13:10.400 --> 0:13:11.240 an ad base model. 0:13:11.280 --> 0:13:11.760 Ours is not. 0:13:12.520 --> 0:13:15.280 Julie Open ai on Amazon both made headlines this week 0:13:15.280 --> 0:13:18.880 with shopping launches. How are their products different to yours? 0:13:19.000 --> 0:13:21.200 Are they compatible to use together or how are you 0:13:21.200 --> 0:13:22.280 dealing with that competition. 0:13:23.640 --> 0:13:24.840 We're really excited about it. 0:13:24.880 --> 0:13:26.840 I think in general shopping, you know, this is the 0:13:26.880 --> 0:13:31.000 first season where AI is really going to improve the 0:13:31.040 --> 0:13:33.280 shopping experience, and it's only going to get better. I 0:13:33.360 --> 0:13:35.040 think the fact that they're both doing this is very 0:13:35.120 --> 0:13:38.080 validating to us. They're separate, but ours is totally focused 0:13:38.120 --> 0:13:40.880 on fashion, and so if you go to either of 0:13:40.920 --> 0:13:44.080 those platforms, you'll find that you were kind of generally 0:13:44.120 --> 0:13:47.120 across all categories, but a little bit less focused on 0:13:47.160 --> 0:13:50.320 a single category. And so shopping and fashion is so 0:13:50.440 --> 0:13:53.280 nuanced that, you know, daydream is better for that. 0:13:54.000 --> 0:13:56.880 So, Julie, what are your clients telling you here about 0:13:57.000 --> 0:14:00.400 this holiday shopping season. What's the level of optimism because 0:14:00.400 --> 0:14:03.040 there are a lot of economic cross currents out there. 0:14:03.679 --> 0:14:06.040 Yeah, that really are I think that this year is 0:14:06.080 --> 0:14:09.360 going to be bigger than last year, but probably not 0:14:09.480 --> 0:14:12.600 by a huge amount. What we're seeing is that there's 0:14:12.640 --> 0:14:14.680 a lot of excitement for all of the sales that 0:14:14.720 --> 0:14:16.920 are going on this week for Cyber Week, and so 0:14:17.440 --> 0:14:21.560 what we have is a daydream broadcast on It's a 0:14:21.560 --> 0:14:24.520 broadcast channel on Instagram where you can actually see all 0:14:24.560 --> 0:14:27.240 the brands and all of the offers that they're giving you. 0:14:27.720 --> 0:14:29.280 What we know is that a lot of people are 0:14:29.320 --> 0:14:31.760 saving the things that they want to buy and coming 0:14:31.800 --> 0:14:35.040 back today to go see if they're on sale. 0:14:35.160 --> 0:14:38.040 You have a lot of experience raising money and bringing 0:14:38.040 --> 0:14:40.200 companies to market and so on. You sold your previous 0:14:40.200 --> 0:14:43.640 company to Pinterest actually, and you've been on the boards 0:14:43.640 --> 0:14:47.480 of you know, Sweet Green, Redfin Weight Watchers, so much experience. 0:14:47.680 --> 0:14:50.560 What is the environment like now for consumer companies and 0:14:50.640 --> 0:14:52.120 raising money. 0:14:52.720 --> 0:14:53.360 It's interesting. 0:14:53.400 --> 0:14:56.640 It's a very strange environment because the role of AI 0:14:56.840 --> 0:14:59.680 has kind of thrown everything off, and so I think 0:14:59.760 --> 0:15:04.920 every everybody who has an interesting angle with AI is 0:15:04.960 --> 0:15:08.640 definitely able to get conversations going. I think that if 0:15:08.680 --> 0:15:11.200 you're not doing something with AI right now, it needs 0:15:11.240 --> 0:15:14.720 to be a very unique proposition. It is a very 0:15:14.760 --> 0:15:18.400 AI focused fundraising environment. Doesn't mean that there aren't other 0:15:18.680 --> 0:15:21.760 ideas that are great and out there, but certainly the 0:15:21.840 --> 0:15:24.680 fact is that AI can help pretty much every aspect 0:15:24.760 --> 0:15:27.160 of building a business right now, and so you want 0:15:27.160 --> 0:15:29.680 to be able to show how you have an advantage 0:15:29.760 --> 0:15:32.280 leveraging AI that other people don't have, so you have 0:15:32.320 --> 0:15:33.720 to figure out what your moat is. 0:15:33.920 --> 0:15:37.280 Julie is partially the reason it's such an AI type 0:15:37.280 --> 0:15:42.840 of fundraising environment because all these dollar donors are invested 0:15:42.880 --> 0:15:43.920 in AI themselves. 0:15:46.440 --> 0:15:49.560 No, I think it's more because everyone believes it's going 0:15:49.640 --> 0:15:52.800 to shape the future, and it's still early, so it's 0:15:52.880 --> 0:15:55.680 hard to know exactly how. But if you're not actually 0:15:55.680 --> 0:15:58.480 taking advantage of it, it seems like a really missed 0:15:58.520 --> 0:16:01.560 opportunity because it will change to the way everyone does work, 0:16:01.600 --> 0:16:04.400 from the way employees work, to the way products are made, 0:16:04.560 --> 0:16:06.960 to the way supply chains run, to the way consumers 0:16:07.040 --> 0:16:07.880 experience a HI. 0:16:09.280 --> 0:16:12.280 So what's the next step here for AI? Do you think, Julie, 0:16:12.360 --> 0:16:14.040 is there another natural progression? 0:16:15.240 --> 0:16:17.920 I think that there will be a lot of evolutions 0:16:17.920 --> 0:16:20.400 in the models. I also think we'll start to see 0:16:20.440 --> 0:16:23.760 over the next year or two a lot more consumer 0:16:23.840 --> 0:16:26.040 experience is changing. So we haven't seen a lot of 0:16:26.080 --> 0:16:28.800 that yet other than going directly to some of these 0:16:28.880 --> 0:16:29.720 new chatbots. 0:16:30.040 --> 0:16:32.160 But if you think about. 0:16:31.880 --> 0:16:33.880 All the things you do in your day to day life, 0:16:34.040 --> 0:16:36.880 things will get a little bit smoother and smarter. As 0:16:36.920 --> 0:16:39.360 a result of AI, and there will be new businesses 0:16:39.400 --> 0:16:44.280 that come along, like Daydream that just make shopping, for example, easier, smoother, 0:16:44.360 --> 0:16:45.120 and more personal. 0:16:45.840 --> 0:16:47.560 All right, great stuff, Thank you so much. We really 0:16:47.600 --> 0:16:52.840 appreciate Julie Bornstein. She's the founder and CEO at Daydream. 0:16:52.400 --> 0:16:54.920 And stay with us. More from Bloomberg Intelligence coming up 0:16:55.160 --> 0:16:55.800 after this. 0:17:00.200 --> 0:17:03.880 To the Bloomberg Intelligence Podcast. Catch us live weekdays at 0:17:03.880 --> 0:17:06.879 ten am Eastern on Apple, Cocklay and Android Auto with 0:17:06.920 --> 0:17:10.040 the Bloomberg Business App. Listen on demand wherever you get 0:17:10.080 --> 0:17:14.160 your podcasts, or watch us live on YouTube Now. 0:17:14.200 --> 0:17:15.919 For more on the state of the consumer on this 0:17:15.960 --> 0:17:20.000 Black Friday, is Andrea Barnardo, a seasoned business leader and 0:17:20.040 --> 0:17:23.919 board director in consumer brands and retail Andrew, thanks so 0:17:23.960 --> 0:17:29.000 much for joining us here. What's the mood of retailers 0:17:29.000 --> 0:17:31.919 here going into this holiday shopping season? There certainly are 0:17:31.920 --> 0:17:34.240 a lot of economic crosswinds out there. 0:17:35.440 --> 0:17:39.000 The retailer is actually quite optimistic, especially compared to where 0:17:39.040 --> 0:17:41.640 they were last year. At the beginning of this year, 0:17:41.680 --> 0:17:44.640 we thought tariffs and tax cuts would drive consumer behavior, 0:17:45.040 --> 0:17:49.000 and while tariffs still remain a big concern, consumers are 0:17:49.040 --> 0:17:52.560 also absorbing something much more subtle. The ripple effects of 0:17:52.720 --> 0:17:56.879 a shutdown, fewer government services, a cold housing market, and 0:17:56.960 --> 0:18:01.640 large company layoffs. So frankly, the eccount of feels contradictory. 0:18:02.040 --> 0:18:04.520 But spending is holding, as we've just seen in Q 0:18:04.720 --> 0:18:08.320 the Q three earnings reports, they are holding. Households are 0:18:08.320 --> 0:18:11.440 more cautious, but customers are still spending in a really 0:18:11.480 --> 0:18:12.320 selective way. 0:18:13.080 --> 0:18:14.000 What are they buying. 0:18:14.119 --> 0:18:16.720 Andrea Deloyde is seeing a lower average spend for the 0:18:16.720 --> 0:18:20.080 Black Friday Cyber Monday. But you know, these statistics sometimes 0:18:20.119 --> 0:18:23.040 can be misleading in the sense that people will continue 0:18:23.080 --> 0:18:24.639 to spend or they've already started spending. 0:18:25.680 --> 0:18:27.960 That's such a great question because when we talk about 0:18:27.960 --> 0:18:32.040 the contradiction of seeing spending the customers being more selective, 0:18:32.480 --> 0:18:35.480 I like to define it as the customer isn't stepping back, 0:18:35.600 --> 0:18:39.960 they're really reprioritizing and they're doing a purposeful reallocation. So 0:18:40.040 --> 0:18:42.199 when you think about what they're spending on, they're kind 0:18:42.240 --> 0:18:45.520 of three big shifts that are happening. One, customers are 0:18:45.520 --> 0:18:49.600 moving towards intelligent value. They're looking for things that have function, 0:18:49.920 --> 0:18:53.280 meaning utility, longevity, so they can feel like they're really 0:18:53.280 --> 0:18:55.080 getting a return on their investment. 0:18:55.560 --> 0:18:57.720 Two their consolidating purchases. 0:18:58.040 --> 0:18:59.960 And so one of the interesting things we've seen is 0:19:00.359 --> 0:19:02.960 in some of these QB earnings reports. 0:19:03.000 --> 0:19:05.640 Is where some of the values are going down. 0:19:05.760 --> 0:19:09.480 We are seeing higher ticket prices and higher order values 0:19:09.560 --> 0:19:12.880 on top of lower order numbers. And so this means 0:19:12.920 --> 0:19:17.200 customers are consolidating purchases, they're sticking with fewer retailers, They're 0:19:17.280 --> 0:19:22.320 leaning heavily into loyalty programs and also convenience. And then finally, 0:19:22.440 --> 0:19:24.440 customers are shopping to reduce stress. 0:19:24.760 --> 0:19:26.440 They're choosing products. 0:19:25.960 --> 0:19:29.960 And services that save time, that simplify life and add comfort. 0:19:30.840 --> 0:19:32.520 How about availability inventory? 0:19:32.560 --> 0:19:33.840 If I'm going to go out and get my kid 0:19:33.880 --> 0:19:35.840 the Gi Joe with the Kung Fu grip, is it 0:19:35.880 --> 0:19:37.240 going to be in the stores? 0:19:38.440 --> 0:19:39.000