1 00:00:02,240 --> 00:00:05,560 Speaker 1: From the heart of where innovation, money and power collive 2 00:00:06,360 --> 00:00:10,879 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:10,960 --> 00:00:27,200 Speaker 1: Emily Jay. I'm Emily taking San Francisco and this is 4 00:00:27,200 --> 00:00:29,639 Speaker 1: Bloomberg Technology coming up in the next hour. A big 5 00:00:29,680 --> 00:00:33,120 Speaker 1: miss for coin based on revenue and earnings, total assets 6 00:00:33,200 --> 00:00:37,360 Speaker 1: plunging by sixty three percent. My conversation with coin based 7 00:00:37,360 --> 00:00:40,920 Speaker 1: president and CEO Emily Joy right after the numbers crossed. 8 00:00:41,240 --> 00:00:45,080 Speaker 1: This hour plus timing is everything. Just as the US 9 00:00:45,159 --> 00:00:48,240 Speaker 1: signs the Chips Act into law to make more chips, 10 00:00:48,560 --> 00:00:50,400 Speaker 1: there are signs chip demand is on the brink of 11 00:00:50,400 --> 00:00:54,960 Speaker 1: a major slowdown. We'll discuss and would you rather subscribe 12 00:00:55,000 --> 00:00:57,480 Speaker 1: to an electric car than own one. We're going to 13 00:00:57,520 --> 00:01:00,200 Speaker 1: talk to the founder of Autonomy and Evie too, a 14 00:01:00,240 --> 00:01:03,320 Speaker 1: company that allows customers to reserve their own tesla in 15 00:01:03,440 --> 00:01:05,640 Speaker 1: just minutes. We will get to all of that in 16 00:01:05,640 --> 00:01:07,040 Speaker 1: a moment, but first I want to stick with coin 17 00:01:07,040 --> 00:01:10,480 Speaker 1: base and bringing Bloomberg Shannalibos, Sticctionnale. Let's walk through the 18 00:01:10,520 --> 00:01:13,560 Speaker 1: top line numbers, miss on revenue, miss on earnings. They 19 00:01:13,640 --> 00:01:16,160 Speaker 1: narrowed their user forecast, and what I thought was really 20 00:01:16,200 --> 00:01:20,800 Speaker 1: interesting is the assets on the platform plunge by more 21 00:01:20,840 --> 00:01:24,920 Speaker 1: than sixty three percent. I mean that seems pretty significant. Yeah, 22 00:01:24,959 --> 00:01:27,760 Speaker 1: that drop off an assets, that drop off you saw 23 00:01:27,800 --> 00:01:31,040 Speaker 1: in monthly transacting users, and that drop off you saw 24 00:01:31,040 --> 00:01:34,440 Speaker 1: on transaction revenue. Really that's a reflection of what you're 25 00:01:34,440 --> 00:01:37,560 Speaker 1: seeing at the retail business mostly there, Emily. You heard 26 00:01:37,600 --> 00:01:39,640 Speaker 1: it from Emily Joy and her conversation with you, is 27 00:01:39,680 --> 00:01:41,680 Speaker 1: that a lot of retail traders are on the sidelines 28 00:01:41,720 --> 00:01:44,640 Speaker 1: and this is still such a pivotal business for coin base. 29 00:01:44,680 --> 00:01:47,119 Speaker 1: You're seeing the stock reacting down more than five percent 30 00:01:47,200 --> 00:01:49,600 Speaker 1: after hours already. Remember this is after a steep drop 31 00:01:49,600 --> 00:01:52,080 Speaker 1: off this year. It has had quite a run up 32 00:01:52,120 --> 00:01:53,960 Speaker 1: in the last couple of days, so it's giving a 33 00:01:54,000 --> 00:01:56,800 Speaker 1: little bit of that back. You were also seeing, you know, 34 00:01:57,320 --> 00:02:00,760 Speaker 1: a lot of its uh investors really reacting here. You're 35 00:02:00,760 --> 00:02:03,200 Speaker 1: seeing bonds also drop, which is really interesting. You're seeing 36 00:02:03,200 --> 00:02:07,120 Speaker 1: coin basis then cost of borrowing rise because bond holders 37 00:02:07,120 --> 00:02:09,520 Speaker 1: are also losing a little bit of confidence there. Uh. 38 00:02:09,560 --> 00:02:12,120 Speaker 1: The question is what is the forward outlook. The question 39 00:02:12,360 --> 00:02:16,240 Speaker 1: is that the outlook for the third quarter also does 40 00:02:16,280 --> 00:02:20,200 Speaker 1: not look so rosy. Those monthly transacting users and trading 41 00:02:20,280 --> 00:02:23,680 Speaker 1: volumes are expected to be down again. So a little 42 00:02:23,680 --> 00:02:25,720 Speaker 1: bit of that run up we've seen in crypto prices 43 00:02:25,720 --> 00:02:29,280 Speaker 1: more recently is not enough yet to offset some of 44 00:02:29,280 --> 00:02:32,000 Speaker 1: the pains we're seeing in those trading businesses over at 45 00:02:32,040 --> 00:02:35,280 Speaker 1: coin base. Now here's a quick listen to part of 46 00:02:35,320 --> 00:02:39,520 Speaker 1: what Emily Joy had to say. She didn't necessarily sugarcoat anything. 47 00:02:39,600 --> 00:02:43,360 Speaker 1: She used the word russ herself. Take a listen. I 48 00:02:43,400 --> 00:02:46,400 Speaker 1: think it was a rough quarter for most companies in 49 00:02:46,440 --> 00:02:50,000 Speaker 1: the crypto space. We we obviously had some big episodic 50 00:02:50,000 --> 00:02:53,160 Speaker 1: events that happened during the quarter, and so some of 51 00:02:53,160 --> 00:02:55,639 Speaker 1: those asset prices shrunk, which then impacts things like the 52 00:02:55,680 --> 00:02:58,359 Speaker 1: assets on platform and other numbers. Now, when I tried 53 00:02:58,400 --> 00:03:01,160 Speaker 1: to ask for her her sort of forecast on you know, 54 00:03:01,240 --> 00:03:04,480 Speaker 1: when this winter thaws, she said, you know, I shouldn't 55 00:03:04,520 --> 00:03:07,240 Speaker 1: be prognosticating, but said that she thinks, you know, some 56 00:03:07,320 --> 00:03:10,000 Speaker 1: of these are crypto industry specific factors that are driving 57 00:03:10,040 --> 00:03:12,040 Speaker 1: these trends. Some of it has to do with the 58 00:03:12,040 --> 00:03:15,040 Speaker 1: broader economy. When it came to hiring, yes, they did 59 00:03:15,120 --> 00:03:17,520 Speaker 1: get a little over exuberant. What did you make of 60 00:03:17,560 --> 00:03:19,480 Speaker 1: what she had to say. I think it's interesting, it's 61 00:03:19,480 --> 00:03:21,840 Speaker 1: certainly true that a lot of other companies did feel 62 00:03:21,880 --> 00:03:24,440 Speaker 1: some pain when it came to impairment charges. For example, 63 00:03:24,520 --> 00:03:27,720 Speaker 1: you're getting pretty close there to a half a billion 64 00:03:27,760 --> 00:03:30,880 Speaker 1: dollars in terms of impairment charges. We've seen similar things 65 00:03:31,160 --> 00:03:34,560 Speaker 1: in terms of charges at micro Strategy and the Block. 66 00:03:35,040 --> 00:03:37,880 Speaker 1: But what about or Block rather the black is the 67 00:03:37,880 --> 00:03:41,000 Speaker 1: crypto publication, But what about um what you're seeing over 68 00:03:41,040 --> 00:03:42,800 Speaker 1: there in terms of their cash burn as well? That's 69 00:03:42,800 --> 00:03:45,600 Speaker 1: another half a billion dollars pretty much right there nearly, 70 00:03:46,000 --> 00:03:50,680 Speaker 1: And so our own Bloomberg Intelligence analysts are saying that 71 00:03:50,720 --> 00:03:53,120 Speaker 1: they're going to have to probably tighten the belt a 72 00:03:53,200 --> 00:03:55,920 Speaker 1: little bit more when it comes to their cash burn 73 00:03:56,320 --> 00:03:58,880 Speaker 1: given some of the top line pressures you're seeing, uh, 74 00:03:58,880 --> 00:04:01,720 Speaker 1: when it comes to transaction revenues. All right, well, we're 75 00:04:01,720 --> 00:04:03,960 Speaker 1: going to catch that full interview with Emily Joy later 76 00:04:03,960 --> 00:04:07,240 Speaker 1: this hour. Shanali Bloomberg Shinney boss as always, thank you 77 00:04:08,000 --> 00:04:12,520 Speaker 1: for your additional context there, Emily Choi coming up. Meantime, 78 00:04:12,520 --> 00:04:15,760 Speaker 1: the US Justice Department is preparing to sue Google as 79 00:04:15,760 --> 00:04:18,200 Speaker 1: soon as next month, capping years of work to build 80 00:04:18,200 --> 00:04:21,599 Speaker 1: a case that it illegally dominates the digital ad market. 81 00:04:21,680 --> 00:04:23,760 Speaker 1: This according to people familiar with the matter. I want 82 00:04:23,760 --> 00:04:26,200 Speaker 1: to bring in Julia Love who just started covering Google 83 00:04:26,560 --> 00:04:29,359 Speaker 1: for Bloomberg. So first of all, welcome. UM. You know, 84 00:04:29,400 --> 00:04:31,039 Speaker 1: this is a case that the DJ has been working 85 00:04:31,080 --> 00:04:34,960 Speaker 1: on for years. What's been the big breakthrough? Um, so 86 00:04:35,040 --> 00:04:37,360 Speaker 1: thank you so much for having me Emily. And yes, 87 00:04:37,360 --> 00:04:39,760 Speaker 1: as you mentioned, you know, this case is a long 88 00:04:39,920 --> 00:04:42,760 Speaker 1: time in the making. UM. D o J first started 89 00:04:42,800 --> 00:04:46,599 Speaker 1: looking into these questions in twenty nineteen. Um, they brought it. 90 00:04:47,040 --> 00:04:50,520 Speaker 1: They brought their first taste related to search. But now 91 00:04:50,520 --> 00:04:53,080 Speaker 1: we're hearing that they're getting very close to finally bring 92 00:04:53,320 --> 00:04:56,280 Speaker 1: Bernina case in the ad tech market. So what could 93 00:04:56,279 --> 00:04:59,000 Speaker 1: come of this lawsuit? What are we expecting? Yeah, there's 94 00:04:59,000 --> 00:05:00,760 Speaker 1: a lot at stake for you know, there was a 95 00:05:00,839 --> 00:05:05,160 Speaker 1: very similar taste brought by the Texas Attorney General in 96 00:05:05,200 --> 00:05:08,120 Speaker 1: which they are actually seeking to force Goodle to sell 97 00:05:08,160 --> 00:05:12,120 Speaker 1: off parts of its ad business. Doodle currently plays various 98 00:05:12,200 --> 00:05:15,400 Speaker 1: roles in this market. It orchestrates the market. It also 99 00:05:16,279 --> 00:05:20,159 Speaker 1: does business with publishers and advertisers and so so the 100 00:05:20,160 --> 00:05:22,680 Speaker 1: state of Texas is arguing that Goodle simply must sell 101 00:05:22,680 --> 00:05:24,960 Speaker 1: off part of its business. It can't see it can't 102 00:05:24,960 --> 00:05:27,120 Speaker 1: play all those roles, and it's possible that d o 103 00:05:27,240 --> 00:05:29,280 Speaker 1: J could seek to do something similar. You know, we've 104 00:05:29,279 --> 00:05:31,880 Speaker 1: spoken with Google executives. You know, I speak to Ruth 105 00:05:31,920 --> 00:05:34,120 Speaker 1: poor Ad on the call every quarter. You know, they 106 00:05:34,160 --> 00:05:38,839 Speaker 1: always talk about how their construction constructively engaging with regulators. 107 00:05:39,000 --> 00:05:42,719 Speaker 1: What's been their comment on this particular report so far, 108 00:05:43,920 --> 00:05:46,960 Speaker 1: they haven't said much. They argue that there that their 109 00:05:47,040 --> 00:05:50,560 Speaker 1: role in the advertising market brings um efficiencies to both 110 00:05:50,800 --> 00:05:54,880 Speaker 1: publishers and advertisers um. But behind the scenes, my colleagues 111 00:05:54,880 --> 00:05:58,240 Speaker 1: have reported that that they have made settlement offers to 112 00:05:58,520 --> 00:06:01,359 Speaker 1: the Justice Department. That's so fire have not done the 113 00:06:01,400 --> 00:06:05,000 Speaker 1: trick and a loss. It seems slightly all right, Julia Love, 114 00:06:05,160 --> 00:06:08,040 Speaker 1: who covers alphabet for us, thank you so much. We're 115 00:06:08,080 --> 00:06:19,360 Speaker 1: going and we'll keep following. President Biden signed a broad 116 00:06:19,400 --> 00:06:22,760 Speaker 1: competition bill into law, including fifty two billion dollars for 117 00:06:22,880 --> 00:06:25,520 Speaker 1: domestic chip R and D. The bill is at the 118 00:06:25,600 --> 00:06:28,719 Speaker 1: center of the administration's effort to reduce dependence on countries 119 00:06:28,720 --> 00:06:32,640 Speaker 1: like Taiwan and South Korea, whose homegrown companies are leading 120 00:06:32,680 --> 00:06:36,839 Speaker 1: the market. Meantime, Micron Technology plans to invest forty billion 121 00:06:36,880 --> 00:06:39,840 Speaker 1: dollars chip manufacturing in the US is part of a 122 00:06:39,880 --> 00:06:45,359 Speaker 1: broader billion dollar investment strategy. But Micron CEO San Jamie 123 00:06:45,440 --> 00:06:48,839 Speaker 1: Rota told Bloomberg earlier there could be trouble ahead for 124 00:06:48,880 --> 00:06:51,880 Speaker 1: the chip sector, especially on the demand side, due to 125 00:06:51,920 --> 00:06:55,920 Speaker 1: the macroeconomic uncertainties, as well as due to high levels 126 00:06:55,920 --> 00:06:59,920 Speaker 1: of inventories that customers have built across various end mark 127 00:07:00,040 --> 00:07:03,799 Speaker 1: gets segments. For US, those in mentalities are being adjusted 128 00:07:03,800 --> 00:07:06,520 Speaker 1: down and that is what is resulting in the duo's 129 00:07:06,600 --> 00:07:12,000 Speaker 1: demand flawed US. Here's Gus Burnstein researched senior Analystacy Rascon, 130 00:07:12,040 --> 00:07:15,320 Speaker 1: as well as our Bloomberg executive editor Free Technology Tom Giles. So, 131 00:07:15,360 --> 00:07:16,840 Speaker 1: first of all, Tom walk us through more of what 132 00:07:16,880 --> 00:07:19,160 Speaker 1: the Micron CEO had to say. This on top of 133 00:07:19,200 --> 00:07:21,880 Speaker 1: what we saw from in video this week and Intel 134 00:07:21,920 --> 00:07:25,120 Speaker 1: and a m D last week, right the picture from 135 00:07:25,120 --> 00:07:30,600 Speaker 1: the chip makers is becoming increasingly dour. Um this morning, basically, 136 00:07:30,720 --> 00:07:35,240 Speaker 1: Micron said already are lowered. Forecast for how revenue is 137 00:07:35,240 --> 00:07:37,440 Speaker 1: going to shake out in the fiscal fourth quarter is 138 00:07:37,440 --> 00:07:40,080 Speaker 1: going to be worse than we expected. It's going to 139 00:07:40,120 --> 00:07:43,680 Speaker 1: be at the low end or possibly below the low end. 140 00:07:43,920 --> 00:07:48,240 Speaker 1: That sent shivers across the chip chip Chip making industry. Um. 141 00:07:48,280 --> 00:07:51,320 Speaker 1: You know, he talked about demand, Uh, talked about build 142 00:07:51,400 --> 00:07:54,760 Speaker 1: up of inventories. There's this question about all these PCs 143 00:07:54,800 --> 00:07:58,800 Speaker 1: that we were snapping up during the pandemic that's starting 144 00:07:58,800 --> 00:08:03,200 Speaker 1: to level out. So, Stacy, what's your read on this? 145 00:08:03,600 --> 00:08:06,360 Speaker 1: Is this just you know, periodic correction or is there 146 00:08:06,400 --> 00:08:08,680 Speaker 1: something more fundamental going on here? Could we be at 147 00:08:08,680 --> 00:08:13,640 Speaker 1: the beginning of a recession level collapse and chips Well, 148 00:08:13,680 --> 00:08:16,560 Speaker 1: I mean collapse is a harsh word, but there's been 149 00:08:16,600 --> 00:08:19,760 Speaker 1: a lot of worries that the very strong demand that 150 00:08:19,760 --> 00:08:21,200 Speaker 1: we've been seeing over the last couple of years in 151 00:08:21,200 --> 00:08:24,040 Speaker 1: the wake of COVID was not sustainable. Um, that some 152 00:08:24,120 --> 00:08:26,720 Speaker 1: of it was was pulled forward as as work happits 153 00:08:26,800 --> 00:08:29,440 Speaker 1: change anything, work from home, study from home, play from home. 154 00:08:29,720 --> 00:08:32,720 Speaker 1: So I elevated demand and that can't last forever. There's 155 00:08:32,760 --> 00:08:34,400 Speaker 1: also been worries that, you know, in the wake of 156 00:08:34,440 --> 00:08:37,280 Speaker 1: all the shortages and everything that we've been seeing, that 157 00:08:38,040 --> 00:08:40,480 Speaker 1: the demand that we saw because of that was actually 158 00:08:40,480 --> 00:08:42,920 Speaker 1: stronger than it looked like. There's a phenomenon that happens 159 00:08:42,920 --> 00:08:46,320 Speaker 1: when customers can't get the parts that they want in 160 00:08:46,360 --> 00:08:48,160 Speaker 1: the time when that they need them, and they tend 161 00:08:48,160 --> 00:08:50,840 Speaker 1: to order more. It's called double ordering. It's a very 162 00:08:50,880 --> 00:08:54,400 Speaker 1: sort of normal behavior. But the problem is to the industry, 163 00:08:53,920 --> 00:08:56,600 Speaker 1: they never know that it's double ordering. They just they 164 00:08:56,640 --> 00:08:59,480 Speaker 1: just see demand going through to the moon. And as 165 00:08:59,679 --> 00:09:01,920 Speaker 1: as actual end demand starts to lag off, and it 166 00:09:02,040 --> 00:09:04,960 Speaker 1: is in some of these especially these consumer areas, supplying 167 00:09:04,960 --> 00:09:06,880 Speaker 1: demand starts to get back into balance, and then you 168 00:09:06,960 --> 00:09:10,240 Speaker 1: discover how much of the actual demand profile that the 169 00:09:10,240 --> 00:09:12,160 Speaker 1: customers are seeing as real and how much of it 170 00:09:12,240 --> 00:09:14,760 Speaker 1: is phantom. The the one thing that Micron said that 171 00:09:14,760 --> 00:09:16,600 Speaker 1: it was a little different was they started pointing out 172 00:09:16,640 --> 00:09:19,680 Speaker 1: inventory corrections things like auto and industrial. These are end 173 00:09:19,720 --> 00:09:22,200 Speaker 1: markets that have been holding up very well. I personally 174 00:09:22,200 --> 00:09:24,840 Speaker 1: have been concerned about these kind of double ordering phenomenons 175 00:09:24,840 --> 00:09:26,960 Speaker 1: in these kind of end markets. And if it turns 176 00:09:27,000 --> 00:09:29,360 Speaker 1: out that they were holding a ton of like memory inventory, 177 00:09:29,400 --> 00:09:31,240 Speaker 1: like I don't know why they wouldn't be holding inventory 178 00:09:31,240 --> 00:09:34,080 Speaker 1: of other parts as well. So people will potentially look 179 00:09:34,120 --> 00:09:36,400 Speaker 1: at that statement as low sort of like the next 180 00:09:36,520 --> 00:09:39,160 Speaker 1: like potential leg down, especially in some of these end 181 00:09:39,160 --> 00:09:41,719 Speaker 1: markets there was right now the demanding them still looks 182 00:09:41,720 --> 00:09:44,880 Speaker 1: pretty strong. The timing tom is just so ironic because 183 00:09:44,880 --> 00:09:47,760 Speaker 1: you've got the US poise to spend billions of dollars 184 00:09:47,800 --> 00:09:51,080 Speaker 1: on chip manufacturing in the United States. But two, we 185 00:09:51,120 --> 00:09:54,760 Speaker 1: really need it. This was supposed to this was supposed 186 00:09:54,760 --> 00:09:57,600 Speaker 1: to be a big day of celebration for the chip industry. 187 00:09:58,000 --> 00:10:00,400 Speaker 1: I listened to the Di Biden and his press conference 188 00:10:00,440 --> 00:10:02,800 Speaker 1: earlier today, and there was hooping and holler and an 189 00:10:02,840 --> 00:10:07,200 Speaker 1: applause and the audience that's talking about innovation and creating jobs. 190 00:10:08,160 --> 00:10:10,600 Speaker 1: And at the same time, you have these companies like 191 00:10:10,679 --> 00:10:14,920 Speaker 1: Intel talking about like slowing down hiring, talking about cutting 192 00:10:14,920 --> 00:10:17,439 Speaker 1: back on spending. And at the same and then and 193 00:10:17,480 --> 00:10:20,840 Speaker 1: this is the industry that has been lobbying for months 194 00:10:20,880 --> 00:10:23,280 Speaker 1: to get the Chips Act through. When's it gonna pass? 195 00:10:23,320 --> 00:10:25,400 Speaker 1: When's it gonna pass? And finally they got what they wanted, 196 00:10:25,600 --> 00:10:28,400 Speaker 1: and it lands with a thud on the worst day 197 00:10:28,400 --> 00:10:31,959 Speaker 1: possible when Micron makes this announcement a day after in 198 00:10:32,040 --> 00:10:34,880 Speaker 1: video makes the announcement. But remember, what they're trying to 199 00:10:34,880 --> 00:10:37,680 Speaker 1: do with the Chips Act is a very long term investment. 200 00:10:37,720 --> 00:10:41,839 Speaker 1: It takes years and billions of dollars to build these factories. 201 00:10:42,160 --> 00:10:45,720 Speaker 1: And clearly we saw during the supply chain crisis, during 202 00:10:45,720 --> 00:10:50,000 Speaker 1: the pandemic that the US has fallen behind in production 203 00:10:50,320 --> 00:10:53,960 Speaker 1: of key chips to countries that you mentioned already, Taiwan 204 00:10:54,040 --> 00:10:56,360 Speaker 1: and South Korea. Stacy, what are your thoughts on this 205 00:10:56,440 --> 00:10:58,840 Speaker 1: and if there you know, are are are any chip 206 00:10:58,840 --> 00:11:02,120 Speaker 1: makers poised to what of this better than others or not? 207 00:11:02,280 --> 00:11:05,280 Speaker 1: You know, I'm thinking Intel, which as Tom mentioned, is 208 00:11:05,360 --> 00:11:10,000 Speaker 1: investing a lot of money in America's heartland. They are, 209 00:11:10,040 --> 00:11:12,280 Speaker 1: and we can argue whether or not Intel has actually 210 00:11:12,320 --> 00:11:14,920 Speaker 1: been able to productively deploy all of the money that 211 00:11:14,960 --> 00:11:16,720 Speaker 1: they that they're gonna They're gonna get a lot of money, 212 00:11:16,720 --> 00:11:18,600 Speaker 1: but you know, it doesn't like go on their balance 213 00:11:18,600 --> 00:11:19,840 Speaker 1: sheet and then they can do whatever they want. They 214 00:11:19,840 --> 00:11:22,320 Speaker 1: actually have to sink it into the ground and make 215 00:11:22,360 --> 00:11:26,600 Speaker 1: productive investments. And given their their near term issues again, 216 00:11:26,600 --> 00:11:28,280 Speaker 1: they've been over earning for a long time and they 217 00:11:28,640 --> 00:11:32,000 Speaker 1: they're ex biting them now. And frankly, I mean even 218 00:11:32,280 --> 00:11:35,680 Speaker 1: the forecast that they were giving like to justify these investments. 219 00:11:35,679 --> 00:11:38,000 Speaker 1: My own personal opinion is that that long term forecast 220 00:11:38,040 --> 00:11:40,640 Speaker 1: at Intel had was outlandish. So I don't actually know 221 00:11:40,679 --> 00:11:42,480 Speaker 1: that Intel is gonna be able to deploy this stuff 222 00:11:42,480 --> 00:11:45,480 Speaker 1: in a value add manner for the industry. We don't 223 00:11:45,480 --> 00:11:47,320 Speaker 1: we won't know for years. The stuff takes years. As 224 00:11:47,320 --> 00:11:52,600 Speaker 1: you said to um uh to add now this go ahead. 225 00:11:52,880 --> 00:11:54,560 Speaker 1: I'm just gonna say the general idea of like the 226 00:11:54,559 --> 00:11:57,240 Speaker 1: whole long term versus the short term. The industry goes 227 00:11:57,240 --> 00:12:00,720 Speaker 1: through down terms. It's happening now probably and we'll see 228 00:12:00,720 --> 00:12:03,600 Speaker 1: where it's now that things said, like over time, we 229 00:12:03,640 --> 00:12:05,480 Speaker 1: will probably need this stuff, and you sort of think 230 00:12:05,480 --> 00:12:08,080 Speaker 1: about this. The industry is big. We five and fifty 231 00:12:08,160 --> 00:12:11,400 Speaker 1: six billion dollars in revenues last year. Maybe we go 232 00:12:11,440 --> 00:12:13,840 Speaker 1: into a DOWNTRENI but like if even at mid single 233 00:12:13,920 --> 00:12:17,360 Speaker 1: digit growth over the cycle some years up here, when 234 00:12:17,360 --> 00:12:19,600 Speaker 1: you're done, it's a trillion dollar industry, and you know, 235 00:12:19,679 --> 00:12:21,640 Speaker 1: ten years plus or minus. So I think in ten 236 00:12:21,760 --> 00:12:24,800 Speaker 1: years will probably be glad like like on a broad 237 00:12:24,840 --> 00:12:27,640 Speaker 1: basis that some of these investments are being made, does 238 00:12:27,640 --> 00:12:29,679 Speaker 1: that mean that they were that we're gonna need him now? No, 239 00:12:30,600 --> 00:12:32,520 Speaker 1: So you're saying we're not going to need this stuff 240 00:12:32,559 --> 00:12:35,079 Speaker 1: for ten years, it's gonna be a decade before supply 241 00:12:35,440 --> 00:12:39,440 Speaker 1: meets demand. It's well, I think supplies already meeting demand, right, 242 00:12:39,480 --> 00:12:41,760 Speaker 1: I mean, supplied near term is coming up and demand 243 00:12:41,840 --> 00:12:44,480 Speaker 1: is coming down. But you have to remember, even if 244 00:12:44,480 --> 00:12:46,880 Speaker 1: we go hole whole hog into this, you're not gonna 245 00:12:46,880 --> 00:12:50,160 Speaker 1: see any material amounts of capacity for years. Even Mike 246 00:12:50,240 --> 00:12:52,280 Speaker 1: run talked about they said, we're gonna do like forty 247 00:12:52,280 --> 00:12:54,880 Speaker 1: billion dollars. They're even planning on bringing any of that 248 00:12:54,920 --> 00:12:57,320 Speaker 1: stuff online for production until the second half of the decade. 249 00:12:57,360 --> 00:13:01,080 Speaker 1: This this stuff takes years and many, many billions of diligion. 250 00:13:01,160 --> 00:13:03,440 Speaker 1: And by the way, you could argue in that context, 251 00:13:03,440 --> 00:13:05,480 Speaker 1: and I've been saying this, the fifty two billion dollars 252 00:13:05,520 --> 00:13:08,040 Speaker 1: or whatever the numbers is a rounding error in the 253 00:13:08,120 --> 00:13:10,880 Speaker 1: grand scheme of things. This is not really, in my opinion, 254 00:13:10,960 --> 00:13:14,760 Speaker 1: going to structurally improve the amount of the percentage of 255 00:13:14,800 --> 00:13:17,199 Speaker 1: capacity that is installed in the US relative to the world. 256 00:13:17,240 --> 00:13:20,360 Speaker 1: It's not big enough, but it isn't get some of 257 00:13:20,360 --> 00:13:22,200 Speaker 1: these projects started in the US, and so you have 258 00:13:22,240 --> 00:13:25,800 Speaker 1: to start somewhere, and don't forget that. In the meantime, 259 00:13:26,600 --> 00:13:29,800 Speaker 1: South Korea, Taiwan, these chip makers, they're not going to 260 00:13:29,920 --> 00:13:33,560 Speaker 1: slow down. They're gonna keep barreling ahead with their innovation 261 00:13:33,679 --> 00:13:36,400 Speaker 1: and they're spending and the US is going to have 262 00:13:36,440 --> 00:13:38,960 Speaker 1: to work all the harder to catch up. Very good point. 263 00:13:39,120 --> 00:13:43,400 Speaker 1: Tom Giles are Bloomberg Executive editor and Stacy rascon Bernstein. Stacy, 264 00:13:43,440 --> 00:13:45,920 Speaker 1: great to have you back here on the show. Thanks 265 00:13:46,280 --> 00:13:49,800 Speaker 1: for stopping by. Alright, coming up, Lemonade shares popping on 266 00:13:49,800 --> 00:13:52,320 Speaker 1: the back of the next gen insurance companies earnies. We're 267 00:13:52,320 --> 00:14:07,360 Speaker 1: gonna talk to the CEO next, Mrs Bloomberg. The insurance 268 00:14:07,360 --> 00:14:10,200 Speaker 1: startup Lemonade says it's on its way to profitability. Shares 269 00:14:10,280 --> 00:14:13,640 Speaker 1: popped after reporting smaller than expected losses in the third quarter. 270 00:14:14,000 --> 00:14:18,320 Speaker 1: Lemonade saying can reach profitability without quote any further infusion 271 00:14:18,840 --> 00:14:23,200 Speaker 1: of capital. Here's Guss Lemonade chair and co CEO Daniel Schreiber. So, Daniel, 272 00:14:23,200 --> 00:14:27,480 Speaker 1: when do you get to that coveted profitability? Well, we're 273 00:14:27,480 --> 00:14:29,920 Speaker 1: turning a corner right now. We've let it be known 274 00:14:29,920 --> 00:14:32,760 Speaker 1: that within amount of weeks we will see peak losses, 275 00:14:32,800 --> 00:14:35,600 Speaker 1: so our losses are going to begin to edge downwards. 276 00:14:35,760 --> 00:14:38,760 Speaker 1: Already in Q four we're going to see shrinking losses 277 00:14:38,840 --> 00:14:41,320 Speaker 1: even as a business continues to grow. We reported sevent 278 00:14:42,560 --> 00:14:45,320 Speaker 1: revenue growth year on year, so we're seeing strong growth 279 00:14:45,800 --> 00:14:48,000 Speaker 1: and drinking losses. So we're very much on the path 280 00:14:48,400 --> 00:14:51,240 Speaker 1: and this is really a reflection of the business doing 281 00:14:51,240 --> 00:14:53,280 Speaker 1: what it was designed to do. This is the output 282 00:14:53,440 --> 00:14:58,240 Speaker 1: of many product launches, many market launches, well thousands pushes 283 00:14:58,280 --> 00:15:00,440 Speaker 1: of production software just during the core to the last 284 00:15:00,520 --> 00:15:03,000 Speaker 1: year alone, and all of these investments are beginning to 285 00:15:03,040 --> 00:15:06,920 Speaker 1: pay off. It's very gratifying. Now you said you've moderated 286 00:15:06,960 --> 00:15:09,360 Speaker 1: spending and the pace of hiring and that you basically 287 00:15:09,400 --> 00:15:11,280 Speaker 1: have enough gas in the tank, you know, not to 288 00:15:11,320 --> 00:15:14,080 Speaker 1: need any additional capital and to subsist on you know, 289 00:15:14,200 --> 00:15:17,880 Speaker 1: the capital that you have until you get to that point. Um, 290 00:15:17,920 --> 00:15:22,000 Speaker 1: what's your outlook if the macro environment continues to be 291 00:15:22,720 --> 00:15:28,360 Speaker 1: very challenged, if we go into a recession. Now, we're 292 00:15:28,400 --> 00:15:31,880 Speaker 1: fortunate to be working in an industry that is pretty 293 00:15:31,960 --> 00:15:35,080 Speaker 1: resilient when it comes to recessions. So we are seeing 294 00:15:35,800 --> 00:15:39,880 Speaker 1: green indicators flashing on our screens really across the business, 295 00:15:39,880 --> 00:15:46,720 Speaker 1: strong demand, strong unit economics, strong marketing efficiencies, strong operational efficiencies. 296 00:15:47,120 --> 00:15:49,840 Speaker 1: There are a couple of areas where we're impacted by 297 00:15:49,840 --> 00:15:52,920 Speaker 1: the macro. For example, loss of capital has definitely shut up, 298 00:15:52,960 --> 00:15:56,400 Speaker 1: which is why we'll be spending it much more cautiously. 299 00:15:57,040 --> 00:15:59,320 Speaker 1: But actually, in terms of the fundamentals of our business, 300 00:15:59,360 --> 00:16:03,440 Speaker 1: insurance as a space, as an industry is reasonably resilient. 301 00:16:04,120 --> 00:16:08,160 Speaker 1: Inflation impacts us somewhat. Cross of capital would impact us 302 00:16:08,520 --> 00:16:11,160 Speaker 1: if it weren't for the fact that we're already well funded. 303 00:16:11,640 --> 00:16:15,160 Speaker 1: But other than that, we're reasonably impervious to what's happening 304 00:16:15,160 --> 00:16:17,480 Speaker 1: out there, which is a fortunate position to be in 305 00:16:18,160 --> 00:16:21,200 Speaker 1: now since the acquisition of Metro mile a third of 306 00:16:21,200 --> 00:16:24,520 Speaker 1: the business, as I understand it, is renters. The business 307 00:16:24,680 --> 00:16:28,320 Speaker 1: is cars. What's what are trends are you seeing? Uh 308 00:16:28,400 --> 00:16:33,400 Speaker 1: in the insurance industry given rising inflation, given consumers under pressure, 309 00:16:33,600 --> 00:16:36,760 Speaker 1: you know when it comes to basic gas and groceries. 310 00:16:37,960 --> 00:16:41,320 Speaker 1: So inflation does affect our industry, and it affects the 311 00:16:41,600 --> 00:16:44,440 Speaker 1: insurance space perhaps more than others, just because the supply 312 00:16:44,560 --> 00:16:48,200 Speaker 1: chain impact on the car industry has been pretty profound. 313 00:16:48,280 --> 00:16:50,360 Speaker 1: You take a kind to a shop today to get repaired, 314 00:16:50,680 --> 00:16:53,400 Speaker 1: you'll pay a lot more than you would otherwise. And 315 00:16:53,480 --> 00:16:55,680 Speaker 1: we're not talking about the nine percent inflation. You're talking 316 00:16:55,720 --> 00:16:59,560 Speaker 1: here about twenty or thirty percent inflation specifically within that 317 00:16:59,640 --> 00:17:02,240 Speaker 1: industy street. So definitely an impact there in in an 318 00:17:02,240 --> 00:17:05,959 Speaker 1: industry where you can't raise prices willing Nearly everything has 319 00:17:06,000 --> 00:17:08,960 Speaker 1: to be approved by regulators and fifty regulators at that 320 00:17:09,400 --> 00:17:12,600 Speaker 1: you can often get timing mismatches between the time that 321 00:17:12,680 --> 00:17:14,800 Speaker 1: you apply to change rates and when you can actually 322 00:17:15,280 --> 00:17:18,480 Speaker 1: change those rates, and inflation does impact you that way. 323 00:17:18,680 --> 00:17:21,680 Speaker 1: We do have the advantage now having acquired Metromile, though, 324 00:17:21,720 --> 00:17:25,800 Speaker 1: of being in a unique position of having a far richer, 325 00:17:25,880 --> 00:17:29,359 Speaker 1: more textured, more precise data set on which to price. 326 00:17:29,440 --> 00:17:34,359 Speaker 1: So the industry at large uses broad stroke proxies, gender 327 00:17:34,560 --> 00:17:39,160 Speaker 1: credit scores, marital status. Metromile has really been spending last 328 00:17:39,280 --> 00:17:43,040 Speaker 1: ten years with precision senses driving billions of miles so 329 00:17:43,080 --> 00:17:46,280 Speaker 1: that they can price and really estimate the risk of 330 00:17:46,400 --> 00:17:50,719 Speaker 1: every mile driven for every individual ensured. And having inherited 331 00:17:50,760 --> 00:17:53,320 Speaker 1: all of that data and now ingesting it into the 332 00:17:53,800 --> 00:17:56,600 Speaker 1: Lemonade Text Act, we should be in a position to 333 00:17:56,640 --> 00:17:59,320 Speaker 1: have an advantage play even in the cast space, even 334 00:17:59,440 --> 00:18:04,920 Speaker 1: under these relatively duress condition that the industry is experiencing. Now, 335 00:18:04,920 --> 00:18:09,439 Speaker 1: I understand you're also exploring blockchain technology for climate change 336 00:18:09,440 --> 00:18:13,560 Speaker 1: related insurance for farmers. You know, what's the status of 337 00:18:13,560 --> 00:18:17,320 Speaker 1: that and the potential of that. Yeah, it's a fabulous initiative. 338 00:18:17,400 --> 00:18:19,879 Speaker 1: This is part of the Lemonade Foundation, which is a 339 00:18:20,040 --> 00:18:24,320 Speaker 1: nonprofit arm So this is entirely nonprofit and we've launched 340 00:18:24,560 --> 00:18:28,480 Speaker 1: the Lemonade Climate Coalition, So this is the crypto climate 341 00:18:28,520 --> 00:18:32,679 Speaker 1: Coalition where we're using an avalanche based smart contract to 342 00:18:32,840 --> 00:18:36,280 Speaker 1: enable subsistent farmers in Africa to ensure their crops. And 343 00:18:36,359 --> 00:18:39,000 Speaker 1: you're talking about something like five dollars worth of creams 344 00:18:39,960 --> 00:18:42,800 Speaker 1: over the course of a season, something like sixty dollars 345 00:18:42,840 --> 00:18:47,040 Speaker 1: of claims. At those levels, traditional insurance just cannot operate 346 00:18:47,160 --> 00:18:50,600 Speaker 1: the cost of just selling a policy, of supporting it, 347 00:18:50,680 --> 00:18:53,960 Speaker 1: of them handling a claim. All of those dwarfs dwarf 348 00:18:54,080 --> 00:18:56,879 Speaker 1: the kind of fees that I just mentioned, But a 349 00:18:56,960 --> 00:19:01,399 Speaker 1: smart contract can execute those kind of insurance policies instantaneously 350 00:19:01,440 --> 00:19:05,520 Speaker 1: and zero overhead. So we're really shifting the higher policy 351 00:19:05,560 --> 00:19:08,720 Speaker 1: into a smart contract where a farmer in Africa will 352 00:19:08,760 --> 00:19:13,240 Speaker 1: be able to use their feature phone to buy coverage instantaneously. 353 00:19:13,560 --> 00:19:17,080 Speaker 1: That will be translated into a wallet on chain which 354 00:19:17,080 --> 00:19:20,040 Speaker 1: will execute against a smart contract which will then be 355 00:19:20,040 --> 00:19:23,360 Speaker 1: parametrically driven so that if there's a climate event, they'll 356 00:19:23,400 --> 00:19:26,040 Speaker 1: get paid instantaneously with no overheads. It's part of a 357 00:19:26,160 --> 00:19:30,239 Speaker 1: non profit initiative we're very pout of fascinating, all right, 358 00:19:30,359 --> 00:19:41,320 Speaker 1: Lemonade co CEO Daniel Trevor, Thank you. Welcome back to 359 00:19:41,320 --> 00:19:43,920 Speaker 1: Bloomberg Technology, Emily Chang in San Francisco. Let's get back 360 00:19:43,960 --> 00:19:46,080 Speaker 1: to the markets now and chairs of Tesla, one of 361 00:19:46,119 --> 00:19:49,840 Speaker 1: the biggest drags on the Nasdaq. One just after a 362 00:19:49,880 --> 00:19:52,760 Speaker 1: slew of new single stock e t s that will 363 00:19:52,840 --> 00:19:56,639 Speaker 1: amplify bets on the notoriously volatile shares hit the market. 364 00:19:56,640 --> 00:19:59,600 Speaker 1: Bloomberg's at Ludlow here with the details at ticket This 365 00:19:59,640 --> 00:20:01,560 Speaker 1: is one that caught my eye. We're looking at single 366 00:20:01,680 --> 00:20:05,639 Speaker 1: name or single stock ETFs, but leveraged and inverse e 367 00:20:05,760 --> 00:20:08,280 Speaker 1: t S and test is really interesting example some new 368 00:20:08,320 --> 00:20:10,880 Speaker 1: products on the market launched Tuesday on a day where 369 00:20:10,880 --> 00:20:13,359 Speaker 1: the stock is down almost two and a half percent. 370 00:20:13,400 --> 00:20:15,760 Speaker 1: The whole point of a leverage and inverse e t 371 00:20:15,920 --> 00:20:17,680 Speaker 1: F is that you want to look for those outsize 372 00:20:17,800 --> 00:20:20,439 Speaker 1: gains when there's movement in the stock, but there are 373 00:20:20,440 --> 00:20:22,879 Speaker 1: also the risk, of course of outside the clients. So 374 00:20:23,000 --> 00:20:26,000 Speaker 1: Direction is one of those providers launching this EATF this 375 00:20:26,119 --> 00:20:29,120 Speaker 1: Tuesday to take the daily testla ble one point five 376 00:20:29,320 --> 00:20:31,800 Speaker 1: x one point five times shares e t F ticker 377 00:20:31,880 --> 00:20:34,160 Speaker 1: t s l L. Now the stock was down two 378 00:20:34,200 --> 00:20:36,760 Speaker 1: and a half percent. That's the risk with the leverage 379 00:20:36,760 --> 00:20:39,400 Speaker 1: ETF because at one and a half times, that meant 380 00:20:39,400 --> 00:20:41,560 Speaker 1: that that e t F actually fell nearer to five 381 00:20:41,640 --> 00:20:45,199 Speaker 1: percent or four point six percent during Tuesday's session. Now, 382 00:20:45,240 --> 00:20:46,720 Speaker 1: if you're a bear and you think the stock is 383 00:20:46,760 --> 00:20:49,400 Speaker 1: going to go down, direction offers you a bear one 384 00:20:49,480 --> 00:20:51,800 Speaker 1: x shares E t F t S l S is 385 00:20:51,840 --> 00:20:53,640 Speaker 1: the ticker. On a day where the stock was two 386 00:20:53,640 --> 00:20:57,400 Speaker 1: and a half percent lower, this inverse ETF was up 387 00:20:57,600 --> 00:20:59,760 Speaker 1: two and a half percent on a one to one ratio. 388 00:21:00,119 --> 00:21:02,080 Speaker 1: So regulators have been talking about this for about a 389 00:21:02,119 --> 00:21:04,680 Speaker 1: month because it's not a new product. A XSS came 390 00:21:04,720 --> 00:21:07,879 Speaker 1: on to the market thirty days ago with a single 391 00:21:07,960 --> 00:21:12,240 Speaker 1: name Tesla inverse et F, and this is the demand 392 00:21:12,320 --> 00:21:14,680 Speaker 1: that they've seen. They're offering a number of products across 393 00:21:14,680 --> 00:21:17,359 Speaker 1: a number of names, but testers where they're seeing trading 394 00:21:17,440 --> 00:21:21,240 Speaker 1: volume and influence. So market regulators are getting a little 395 00:21:21,280 --> 00:21:24,160 Speaker 1: bit worried about this because you're making an outsized bet 396 00:21:24,480 --> 00:21:26,919 Speaker 1: on a stock that can move in other direction depending 397 00:21:26,920 --> 00:21:29,159 Speaker 1: on your conviction. And given what we've seen in the 398 00:21:29,160 --> 00:21:31,760 Speaker 1: markets of late with volatility, this is an area we 399 00:21:31,800 --> 00:21:34,520 Speaker 1: should keep an eye on him. And thank you meantime, 400 00:21:34,560 --> 00:21:38,320 Speaker 1: would you rather subscribe to a Tesla than own one? 401 00:21:38,640 --> 00:21:41,480 Speaker 1: Joining me now, the founder of Autonomy and ev rental 402 00:21:41,520 --> 00:21:44,080 Speaker 1: company that allows customers to reserve their own Tesla and 403 00:21:44,119 --> 00:21:49,720 Speaker 1: other electric cars in just minutes, CEO Scott Painter with me. Now, So, Scott, 404 00:21:49,840 --> 00:21:52,359 Speaker 1: how would you describe what you do differently here than 405 00:21:52,440 --> 00:21:55,680 Speaker 1: let's say, just a typical rental car company. Well, a 406 00:21:55,760 --> 00:21:57,600 Speaker 1: rental car is just something that's going to cost you 407 00:21:57,600 --> 00:21:59,320 Speaker 1: a lot more. Number one, it's a it's a good 408 00:21:59,320 --> 00:22:01,040 Speaker 1: option if you're gonna need a car in a city 409 00:22:01,040 --> 00:22:02,919 Speaker 1: where you're just visiting for a couple of days. But 410 00:22:03,080 --> 00:22:06,440 Speaker 1: flexible access to mobility is really about avoiding going into debt, 411 00:22:06,520 --> 00:22:09,400 Speaker 1: and it's about making it easier, faster, and less expensive. 412 00:22:09,800 --> 00:22:12,000 Speaker 1: Our belief is that one of the big barriers to 413 00:22:12,119 --> 00:22:16,240 Speaker 1: mass adoption for electric vehicles is affordability. Uh the average 414 00:22:16,280 --> 00:22:19,920 Speaker 1: car payment in America today's about six fifty dollars. We've 415 00:22:19,960 --> 00:22:21,760 Speaker 1: got a product that gets you into a Testle Model 416 00:22:21,800 --> 00:22:25,600 Speaker 1: three tomorrow for four a month. Talk to us about 417 00:22:25,640 --> 00:22:28,720 Speaker 1: your partnerships. Obviously, we know you can get Testla's, but 418 00:22:28,760 --> 00:22:32,040 Speaker 1: you're also working to increase the supply of other kinds 419 00:22:32,080 --> 00:22:35,080 Speaker 1: of cars, what kind of inventory or I should say 420 00:22:35,080 --> 00:22:38,800 Speaker 1: options are there. Well, we've been operating in California throughout 421 00:22:38,840 --> 00:22:41,240 Speaker 1: the first part of this year, and what we've really 422 00:22:41,240 --> 00:22:43,960 Speaker 1: proved is that the unit economics and the business really 423 00:22:44,000 --> 00:22:46,840 Speaker 1: does work. We've created a very robust demand list and 424 00:22:46,880 --> 00:22:50,000 Speaker 1: we are now expanding into the model why and we've 425 00:22:50,040 --> 00:22:53,280 Speaker 1: also today announced in order for twenty three thousand vehicles 426 00:22:53,480 --> 00:22:56,359 Speaker 1: across seventeen different automakers. So we're really going to be 427 00:22:56,400 --> 00:22:59,359 Speaker 1: expanding the offer the offering to give customers more choice, 428 00:22:59,440 --> 00:23:02,720 Speaker 1: and it's going to be the entire electric vehicle buffet, 429 00:23:02,800 --> 00:23:05,639 Speaker 1: everything from an entry level vehicle like the Bolt e 430 00:23:05,720 --> 00:23:07,399 Speaker 1: V all the way up to a Hummer V that 431 00:23:07,440 --> 00:23:09,439 Speaker 1: might cost you a little bit more. We expect that 432 00:23:09,520 --> 00:23:11,720 Speaker 1: our order for twenty three thousand vehicle is going to 433 00:23:11,760 --> 00:23:14,919 Speaker 1: get filled differently by every manufacturer. Step one for us 434 00:23:15,000 --> 00:23:16,960 Speaker 1: is to place the order, talk with each of these 435 00:23:16,960 --> 00:23:20,679 Speaker 1: manufacturers about their production timetable when we can expect this 436 00:23:20,800 --> 00:23:23,360 Speaker 1: order to be filled. But we do expect our biggest 437 00:23:23,359 --> 00:23:26,000 Speaker 1: customer or biggest purchase order, which is going to be 438 00:23:26,000 --> 00:23:29,280 Speaker 1: with Tesla, to start being filled right away. Um, We've 439 00:23:29,440 --> 00:23:31,320 Speaker 1: we've placed an order for as many as eight thousand 440 00:23:31,320 --> 00:23:34,760 Speaker 1: three D cars from Tesla alone. How do you finance 441 00:23:34,960 --> 00:23:38,600 Speaker 1: all of these orders? I mean, you know, rental car companies, 442 00:23:38,760 --> 00:23:42,480 Speaker 1: it's it's you know, historically kind of a difficult business. Well, 443 00:23:42,520 --> 00:23:45,680 Speaker 1: you know, fundamentally, we believe that owning an electric car 444 00:23:46,119 --> 00:23:48,680 Speaker 1: is a good asset at this moment. Right now, you've 445 00:23:48,720 --> 00:23:52,080 Speaker 1: got structural scarcity for electric cars, just simply not enough 446 00:23:52,080 --> 00:23:55,240 Speaker 1: cars being made. The factory that makes used electric cars, 447 00:23:55,240 --> 00:23:57,840 Speaker 1: which is what drives future value of electric cars, is 448 00:23:57,840 --> 00:24:00,800 Speaker 1: the new Car factory three years ago. So we're looking 449 00:24:00,920 --> 00:24:03,680 Speaker 1: very closely at what gets produced, what's going into production. 450 00:24:03,720 --> 00:24:06,960 Speaker 1: The announcement everybody has said they're going all in on electric. 451 00:24:07,000 --> 00:24:09,840 Speaker 1: It's not as though General Motors and Forward in Volkswa 452 00:24:09,880 --> 00:24:11,960 Speaker 1: can have said they're gonna make an electric car. They 453 00:24:12,080 --> 00:24:15,879 Speaker 1: said they're going all electric, So for is going to 454 00:24:15,960 --> 00:24:20,000 Speaker 1: be all electric gener Motors by as these production facilities 455 00:24:20,000 --> 00:24:23,440 Speaker 1: come online and these products become available to consumers, autonomy 456 00:24:23,560 --> 00:24:26,160 Speaker 1: is just another way to get access. We also are 457 00:24:26,240 --> 00:24:29,680 Speaker 1: interestingly not selling you a car. We're not lending you money, 458 00:24:29,720 --> 00:24:31,800 Speaker 1: and as such you can put this on your credit card. 459 00:24:32,640 --> 00:24:35,960 Speaker 1: It is a month to month offering. So far less commitment. 460 00:24:36,080 --> 00:24:38,480 Speaker 1: It does not show up as debt, so it leaves 461 00:24:38,480 --> 00:24:42,479 Speaker 1: you with available borrowing capability. So it is really modern 462 00:24:42,520 --> 00:24:45,879 Speaker 1: in the sense that it's also one percent digital. You 463 00:24:45,920 --> 00:24:49,520 Speaker 1: don't have to do anything offline, there's no negotiation. Everything's 464 00:24:49,560 --> 00:24:51,959 Speaker 1: men you driven. What about what gets bought? What are 465 00:24:52,000 --> 00:24:56,159 Speaker 1: you seeing in your market research about consumer adoption of 466 00:24:56,240 --> 00:25:00,000 Speaker 1: electric cars? Yeah, our order is really following consumer adopts, 467 00:25:00,000 --> 00:25:01,720 Speaker 1: and if you look carefully at the cars that we've 468 00:25:01,800 --> 00:25:04,320 Speaker 1: ordered by manufacturer, these are the cars that we feel 469 00:25:04,320 --> 00:25:07,280 Speaker 1: are going to be most popular. We're ordering fewer volumes 470 00:25:07,320 --> 00:25:10,000 Speaker 1: of the higher end or more expensive cars. Our medium 471 00:25:10,040 --> 00:25:12,399 Speaker 1: price point tends to be right around fifty thousand dollars. 472 00:25:12,400 --> 00:25:16,080 Speaker 1: Our primary vehicle, our launch vehicle with the Tesla Model three. 473 00:25:16,359 --> 00:25:19,320 Speaker 1: We've now expanded into the model why we believe, for example, 474 00:25:19,359 --> 00:25:22,119 Speaker 1: that the Model three is really this generation's prius, but 475 00:25:22,200 --> 00:25:25,120 Speaker 1: at fifty dollars, it does represent the medium price point 476 00:25:25,119 --> 00:25:26,800 Speaker 1: in the pack, and that allows us to deliver a 477 00:25:27,880 --> 00:25:30,960 Speaker 1: monthly payment. Something will continue to follow. Autonomy founder and 478 00:25:31,000 --> 00:25:34,560 Speaker 1: CEO Scott Painter, well widely recognized as one of the 479 00:25:34,560 --> 00:25:37,760 Speaker 1: greatest athletes of all times. Serena Williams plans to retire 480 00:25:37,880 --> 00:25:41,639 Speaker 1: from tennis after playing in this month's US Open. Williams, 481 00:25:41,680 --> 00:25:44,919 Speaker 1: now forty, has won twenty three Grand Slam titles and 482 00:25:44,960 --> 00:25:48,160 Speaker 1: almost a hundred million dollars in prize money. I asked 483 00:25:48,160 --> 00:25:50,040 Speaker 1: if she was thinking about retirement just a few months 484 00:25:50,040 --> 00:25:52,000 Speaker 1: ago when she joined us on the show Take a 485 00:25:52,000 --> 00:25:54,359 Speaker 1: Listen to what she had to say. That every tennis 486 00:25:54,359 --> 00:25:57,240 Speaker 1: player thinks about our word as soon as they hit 487 00:25:57,280 --> 00:26:02,400 Speaker 1: five years, because so this is so intense, it's literally 488 00:26:02,480 --> 00:26:06,639 Speaker 1: eleven months out of the year. Um. But I always 489 00:26:06,680 --> 00:26:09,639 Speaker 1: tell people I'm not planning for tomorrow, only in business. 490 00:26:09,680 --> 00:26:11,359 Speaker 1: While here we are a few months later and she 491 00:26:11,480 --> 00:26:14,880 Speaker 1: has made a decision about the R word, And speaking 492 00:26:15,040 --> 00:26:17,760 Speaker 1: of business, she says she's also going to focus on 493 00:26:17,760 --> 00:26:21,159 Speaker 1: her venture capital firm, Serena Ventures, which mostly invests in 494 00:26:21,720 --> 00:26:25,000 Speaker 1: companies started by women and people of color. I wake 495 00:26:25,080 --> 00:26:27,960 Speaker 1: up every morning thinking, oh my gosh, I cannot wait 496 00:26:28,000 --> 00:26:30,320 Speaker 1: to open my computer and look at decks or just 497 00:26:30,359 --> 00:26:32,720 Speaker 1: talk to the company, or just see how what we're 498 00:26:32,720 --> 00:26:36,400 Speaker 1: gonna do today. Um, And it's something that is I'm 499 00:26:36,400 --> 00:26:39,679 Speaker 1: super passionate about. Serena Williams, all right, coming up my 500 00:26:39,720 --> 00:26:42,919 Speaker 1: exclusive conversation with the President and Chief operating officer of 501 00:26:43,000 --> 00:26:45,919 Speaker 1: coin Base. What Emily Troy has to say about a 502 00:26:46,000 --> 00:26:50,000 Speaker 1: quote unquote rough forter She's with us next, Mrs Bloomberg, 503 00:27:08,240 --> 00:27:10,840 Speaker 1: onto our crypto report. Now. I sat down with coin 504 00:27:10,880 --> 00:27:14,440 Speaker 1: base at president and CEO Emily Joy just moments after 505 00:27:14,480 --> 00:27:17,480 Speaker 1: earnings crossed. It was a miss on revenue and earnings, 506 00:27:17,520 --> 00:27:21,280 Speaker 1: while assets on the platform plunged more than coin Base 507 00:27:21,359 --> 00:27:24,520 Speaker 1: also narrowed its user forecast. Here's what Choi had to 508 00:27:24,560 --> 00:27:27,160 Speaker 1: say about the quarter. I think it was a rough 509 00:27:27,280 --> 00:27:30,480 Speaker 1: quarter for most companies in the crypto space. We we 510 00:27:30,520 --> 00:27:34,720 Speaker 1: obviously had some big episodic events that happened during the quarter, 511 00:27:34,880 --> 00:27:37,479 Speaker 1: and so some of those asset prices shrunk, which then 512 00:27:37,520 --> 00:27:40,280 Speaker 1: impacts things like the assets on platform and other numbers. 513 00:27:40,800 --> 00:27:44,520 Speaker 1: So the monthly transacting users actually beat. But according to 514 00:27:44,800 --> 00:27:47,879 Speaker 1: many analysts, coin bases losing share. Losing market share? Is 515 00:27:47,920 --> 00:27:49,720 Speaker 1: that your take and if so, what are you doing 516 00:27:49,760 --> 00:27:53,000 Speaker 1: to stop the decline? So let me on pipe. I 517 00:27:53,000 --> 00:27:55,720 Speaker 1: think there's different pieces of this puzzle. So one is 518 00:27:56,280 --> 00:28:00,480 Speaker 1: our core retail customer is somewhat sitting on the sidelines 519 00:28:00,520 --> 00:28:02,840 Speaker 1: in this type of a turbulent market, and we've seen 520 00:28:02,840 --> 00:28:05,080 Speaker 1: that in past cycles. What happens is they want to 521 00:28:05,080 --> 00:28:06,560 Speaker 1: sit it out, they want to hoddle for a little bit, 522 00:28:06,600 --> 00:28:08,640 Speaker 1: and then they come back on and they'll engage with 523 00:28:08,640 --> 00:28:11,920 Speaker 1: with certain features such as staking and other things. UM. 524 00:28:12,000 --> 00:28:13,600 Speaker 1: We did talk about the fact that there were some 525 00:28:13,640 --> 00:28:16,920 Speaker 1: episodic bankruptcies that happened this quarter, and as a result 526 00:28:16,960 --> 00:28:18,760 Speaker 1: of that, you know, we were untouched by that. We 527 00:28:18,800 --> 00:28:22,040 Speaker 1: have incredible risk management UM and we we had zero 528 00:28:22,040 --> 00:28:24,639 Speaker 1: exposure to that, but there was an aspect of it 529 00:28:24,680 --> 00:28:27,080 Speaker 1: where we didn't also benefit from some of the liquidity 530 00:28:27,119 --> 00:28:29,560 Speaker 1: flows that happened during the course of the quarter. And 531 00:28:29,720 --> 00:28:32,040 Speaker 1: there also is a reality that during these types of 532 00:28:32,040 --> 00:28:34,840 Speaker 1: cycles you have market makers and high frequency traders making 533 00:28:34,880 --> 00:28:37,440 Speaker 1: up the bulk of activity. A lot of that activity 534 00:28:37,440 --> 00:28:41,360 Speaker 1: happens offshore, and so to that extent, like we might 535 00:28:41,400 --> 00:28:44,600 Speaker 1: not have participated as much as others in the ecosystem, 536 00:28:44,640 --> 00:28:46,400 Speaker 1: the way that we focus on that over the longer 537 00:28:46,480 --> 00:28:49,480 Speaker 1: term is we drive more international growth to make sure 538 00:28:49,520 --> 00:28:52,440 Speaker 1: we participate in that upside. And we also are investing 539 00:28:52,440 --> 00:28:54,720 Speaker 1: heavily in products like derivatives, where which our users are 540 00:28:54,720 --> 00:28:56,840 Speaker 1: showing a lot of demand for. So what's your take 541 00:28:57,000 --> 00:28:59,880 Speaker 1: on where we are in the crypto winter. Are you 542 00:29:00,080 --> 00:29:03,400 Speaker 1: seeing signs of you know, starting to thaw or are 543 00:29:03,440 --> 00:29:07,200 Speaker 1: we still deep freeze. I am smart enough to know 544 00:29:07,400 --> 00:29:09,840 Speaker 1: not to make a prognostication on where we are in 545 00:29:09,840 --> 00:29:13,200 Speaker 1: the cycle. Um, what I can say is that coin 546 00:29:13,200 --> 00:29:16,520 Speaker 1: Base has now been through for major cycles, ten years 547 00:29:16,800 --> 00:29:20,040 Speaker 1: of operating this company, and so we just know how 548 00:29:20,080 --> 00:29:21,800 Speaker 1: to run a long term business. We know how to 549 00:29:21,920 --> 00:29:24,040 Speaker 1: preserve cash, we know how to operate it so that 550 00:29:24,080 --> 00:29:26,120 Speaker 1: we're investing in the long term and that's all we're 551 00:29:26,120 --> 00:29:29,320 Speaker 1: gonna keep doing. How much of what's happening do you 552 00:29:29,320 --> 00:29:31,440 Speaker 1: think is tied to the overall economy, to what the 553 00:29:31,480 --> 00:29:36,160 Speaker 1: FED is doing versus crypto industry specific factors. It's a mix, 554 00:29:36,240 --> 00:29:38,800 Speaker 1: and it's it's hard to say what exactly comes from 555 00:29:38,840 --> 00:29:41,959 Speaker 1: the macro what exactly comes from the crypto winter. You know, 556 00:29:42,040 --> 00:29:44,320 Speaker 1: in some cases they were intertwined because some of the 557 00:29:44,360 --> 00:29:49,160 Speaker 1: macro conditions caused the run on the assets that created 558 00:29:49,200 --> 00:29:52,680 Speaker 1: some of those bankruptcies. So, you know, ultimately, the way 559 00:29:52,720 --> 00:29:55,840 Speaker 1: that we approach that market condition is we think about 560 00:29:55,840 --> 00:29:59,280 Speaker 1: how do we drive higher revenue generating activities, how do 561 00:29:59,360 --> 00:30:02,240 Speaker 1: we cause cut in these types of environments, and then 562 00:30:02,400 --> 00:30:03,920 Speaker 1: how do we also make sure that we have the 563 00:30:03,960 --> 00:30:07,800 Speaker 1: absolute risk management in place so that we avoid any 564 00:30:07,840 --> 00:30:09,720 Speaker 1: any of the contagion that happened, which is exactly what 565 00:30:09,720 --> 00:30:11,920 Speaker 1: we did. You do say you're going to have limited 566 00:30:11,960 --> 00:30:14,160 Speaker 1: ongoing hiring. You had a big round of layoffs back 567 00:30:14,160 --> 00:30:17,239 Speaker 1: in June. Several companies have had layoffs. I know you 568 00:30:17,320 --> 00:30:19,160 Speaker 1: and Brian have always talked about you're thinking about the 569 00:30:19,160 --> 00:30:22,600 Speaker 1: long term, You're looking ahead in the cycle. So what 570 00:30:22,640 --> 00:30:24,800 Speaker 1: do you think was the miscalculation here? Where do you 571 00:30:24,840 --> 00:30:28,520 Speaker 1: think things went wrong? You know, it's entirely possible that 572 00:30:28,560 --> 00:30:31,560 Speaker 1: we got a little too exuberant um as the market 573 00:30:31,680 --> 00:30:35,560 Speaker 1: got really frothy, and I think that's a natural consequence. 574 00:30:35,600 --> 00:30:37,160 Speaker 1: I mean, I think we're not the only company to 575 00:30:37,200 --> 00:30:39,560 Speaker 1: have experience that. What you saw then was that we 576 00:30:39,600 --> 00:30:43,800 Speaker 1: took some of the earliest, swiftest decisive action with the cuts. 577 00:30:43,800 --> 00:30:45,479 Speaker 1: As hard as they were, they were the right thing 578 00:30:45,520 --> 00:30:47,240 Speaker 1: for the company, and so we're always going to be 579 00:30:47,360 --> 00:30:49,120 Speaker 1: nimble and adjust to the market as we need to. 580 00:30:49,440 --> 00:30:51,600 Speaker 1: You did do this big partnership with black Rock. I 581 00:30:51,600 --> 00:30:54,000 Speaker 1: know investors were really excited about that. Are you expecting 582 00:30:54,000 --> 00:30:56,880 Speaker 1: more of these kinds of institutional partnerships and what kind 583 00:30:57,360 --> 00:31:00,280 Speaker 1: of partnerships. Yeah, Emily, I have one in to do 584 00:31:00,360 --> 00:31:03,120 Speaker 1: that black Rock partnership since the day I joined coin Base, 585 00:31:03,280 --> 00:31:05,680 Speaker 1: And to be totally honest, we wouldn't have been ready 586 00:31:05,680 --> 00:31:07,720 Speaker 1: for it back when I first joined because we didn't 587 00:31:07,760 --> 00:31:09,640 Speaker 1: have everything in place that we needed to in terms 588 00:31:09,680 --> 00:31:12,240 Speaker 1: of the product suite and the compliance and everything that 589 00:31:12,240 --> 00:31:15,000 Speaker 1: we needed um and black Rock wouldn't have been ready 590 00:31:15,040 --> 00:31:18,800 Speaker 1: because their institutional customers weren't necessarily demanding crypto is a 591 00:31:18,800 --> 00:31:20,840 Speaker 1: new form of asset class. It was kind of an idea. 592 00:31:21,320 --> 00:31:24,720 Speaker 1: So for this to come together now actually during the 593 00:31:24,720 --> 00:31:28,360 Speaker 1: crypto winter, is such an incredible testament to where we are, 594 00:31:28,400 --> 00:31:31,200 Speaker 1: where they are, where their customers are. And I think 595 00:31:31,280 --> 00:31:33,960 Speaker 1: the most important point is it speaks to institutional customers, 596 00:31:34,080 --> 00:31:37,960 Speaker 1: very traditional institutional customers wanting to get crypto asset exposure. 597 00:31:38,000 --> 00:31:40,000 Speaker 1: So will we see more of these or are there 598 00:31:40,000 --> 00:31:43,080 Speaker 1: other institutional partners that potential partners that you're talking to 599 00:31:43,160 --> 00:31:47,360 Speaker 1: that are interested. You will see more of these, And honestly, 600 00:31:47,480 --> 00:31:50,800 Speaker 1: we are the number one partner to partner with those folks, 601 00:31:50,840 --> 00:31:54,280 Speaker 1: given our focus on regulation, compliance and security of assets. 602 00:31:54,360 --> 00:31:55,680 Speaker 1: Coin Base has had a bit of a back and 603 00:31:55,720 --> 00:31:58,440 Speaker 1: forth with the SEC. There are still I believe nine 604 00:31:58,480 --> 00:32:03,680 Speaker 1: tokens coin base has listed continues to list as tokens 605 00:32:03,680 --> 00:32:07,680 Speaker 1: that the SEC claims or securities. Why. Yeah, So we 606 00:32:07,800 --> 00:32:11,719 Speaker 1: have never shied away from regulation. It's part of our lifeblood. Frankly, 607 00:32:11,760 --> 00:32:14,320 Speaker 1: it's it was counterintuitively something that we invested in from 608 00:32:14,360 --> 00:32:17,000 Speaker 1: the early days of the company. So we welcome healthy, 609 00:32:17,040 --> 00:32:21,600 Speaker 1: sensible regulation. In this case, the SEC has launched an 610 00:32:21,640 --> 00:32:25,400 Speaker 1: inquiry about nine assets on our platform. As you know, 611 00:32:25,680 --> 00:32:28,120 Speaker 1: we spend a tremendous amount of time and effort and 612 00:32:28,200 --> 00:32:32,360 Speaker 1: resources classifying assets and whether we believe they fall into 613 00:32:32,440 --> 00:32:36,400 Speaker 1: the security or utility space. UM. If this is an 614 00:32:36,440 --> 00:32:38,760 Speaker 1: opportunity to have that dialogue again and to make sure 615 00:32:38,800 --> 00:32:41,040 Speaker 1: that we agree on a sensible framework for that, we 616 00:32:41,040 --> 00:32:42,640 Speaker 1: welcome it, and we're of course going to partner with 617 00:32:42,680 --> 00:32:46,240 Speaker 1: the SEC, CFTC and any other regulators or lawmakers on 618 00:32:46,280 --> 00:32:48,760 Speaker 1: any of us. There's also this insider trading case where 619 00:32:48,800 --> 00:32:51,720 Speaker 1: a former coin based employee has been charged. What's your 620 00:32:51,760 --> 00:32:54,040 Speaker 1: relationship with the SEC at this point and what's your 621 00:32:54,080 --> 00:32:58,440 Speaker 1: comment on that particular case. We have a zero tolerance 622 00:32:58,440 --> 00:33:04,000 Speaker 1: policy for front running. UM. We pride ourselves on the 623 00:33:04,080 --> 00:33:08,560 Speaker 1: amount of security and detection that we invest in to 624 00:33:08,600 --> 00:33:10,840 Speaker 1: make sure that we can detect for front running. We 625 00:33:10,880 --> 00:33:12,920 Speaker 1: worked very closely with the d o J on this case. 626 00:33:12,920 --> 00:33:15,000 Speaker 1: In fact, they publicly lauded us, which is a very 627 00:33:15,080 --> 00:33:17,720 Speaker 1: unusual thing because we spent a ton of time getting 628 00:33:17,720 --> 00:33:19,840 Speaker 1: them up to speed on the nuances of the case. 629 00:33:20,320 --> 00:33:24,160 Speaker 1: And we'll continue to work with with any regulators and 630 00:33:24,320 --> 00:33:27,520 Speaker 1: law enforcement on making sure that we nip that activity 631 00:33:27,520 --> 00:33:39,520 Speaker 1: in the bud Coin based president and CEO Emily Joy. 632 00:33:40,440 --> 00:33:43,080 Speaker 1: Over Time Sports has just raised a hundred million dollars 633 00:33:43,080 --> 00:33:45,600 Speaker 1: in funding to expand its leads for the next generation 634 00:33:45,760 --> 00:33:49,400 Speaker 1: of athletes. The company started out posting high school sports 635 00:33:49,480 --> 00:33:52,440 Speaker 1: highlights on social media back in in an effort to 636 00:33:52,480 --> 00:33:56,560 Speaker 1: build an audience of fifteen year olds who love sports. 637 00:33:56,840 --> 00:34:02,000 Speaker 1: Over Time now boasts eighty channels across six platforms spanning football, basketball, soccer, 638 00:34:02,080 --> 00:34:04,440 Speaker 1: and gaming, and over the last year, the company has 639 00:34:04,440 --> 00:34:07,920 Speaker 1: branched out into running its own sports leagues. I want 640 00:34:07,920 --> 00:34:11,600 Speaker 1: to bring in overtime CEO Dan Porter now for more so. Dan, 641 00:34:11,680 --> 00:34:14,520 Speaker 1: I know you started out making this bet on high school, 642 00:34:14,560 --> 00:34:17,600 Speaker 1: but you've evolved quite a bit since that time, and 643 00:34:17,640 --> 00:34:21,320 Speaker 1: now you're focusing on sort of next generation athletes maybe 644 00:34:21,360 --> 00:34:23,839 Speaker 1: just out of high school, talk to us about give 645 00:34:23,920 --> 00:34:27,120 Speaker 1: us a snapshot of where the company is today. So 646 00:34:27,160 --> 00:34:30,360 Speaker 1: today we still have our kind of our core business. 647 00:34:30,520 --> 00:34:34,759 Speaker 1: Where we went after the audience. You know, the average 648 00:34:34,880 --> 00:34:38,320 Speaker 1: age of the kind of sports fan and season ticket 649 00:34:38,360 --> 00:34:40,480 Speaker 1: holder of the Big four sports is still in the 650 00:34:40,520 --> 00:34:43,200 Speaker 1: forties and fifties, and we made a big bet that 651 00:34:43,320 --> 00:34:45,440 Speaker 1: we could go out and get that younger audience, and 652 00:34:45,480 --> 00:34:48,719 Speaker 1: that younger audience is the core of our community. And 653 00:34:48,760 --> 00:34:50,319 Speaker 1: what we did is we said, Okay, we have this 654 00:34:50,400 --> 00:34:54,480 Speaker 1: active community, We're on every social platform, they're super engaged 655 00:34:54,600 --> 00:34:58,759 Speaker 1: with us, and let's launch our own leagues on top 656 00:34:58,840 --> 00:35:03,000 Speaker 1: of that. And so we saw some opportunity in the marketplace. 657 00:35:03,080 --> 00:35:06,520 Speaker 1: We saw opportunities for athlete empowerment. And we've built these 658 00:35:06,600 --> 00:35:09,320 Speaker 1: leagues with kind of seventeen to nineteen year old players, 659 00:35:09,360 --> 00:35:11,880 Speaker 1: some are high school age, some are out of high school. 660 00:35:12,080 --> 00:35:15,480 Speaker 1: But really it's about the audience. And I think that 661 00:35:15,640 --> 00:35:19,680 Speaker 1: professional sports is incredible, but every generation kind of wants 662 00:35:19,719 --> 00:35:22,319 Speaker 1: its own things spoken in its own voice. And so 663 00:35:22,360 --> 00:35:25,000 Speaker 1: we've launched a league in basketball, in the league in 664 00:35:25,000 --> 00:35:28,080 Speaker 1: football where we think there's an opportunity to build millions 665 00:35:28,080 --> 00:35:31,520 Speaker 1: and millions of fans and deliver them kind of sports 666 00:35:31,680 --> 00:35:34,080 Speaker 1: in their own voice. And that's our big bed and 667 00:35:34,120 --> 00:35:37,120 Speaker 1: that's where the hundred million dollars is going. So what's 668 00:35:37,160 --> 00:35:40,880 Speaker 1: the vision to expand these leagues and also you know, 669 00:35:40,960 --> 00:35:45,399 Speaker 1: potentially cash in on media rights. So really our our 670 00:35:45,440 --> 00:35:48,680 Speaker 1: goal over the next three years is to grow audience. 671 00:35:49,120 --> 00:35:52,680 Speaker 1: It's kind of an interesting thing because you become a 672 00:35:52,719 --> 00:35:56,440 Speaker 1: sports fan because you have an emotional attachment to a team, 673 00:35:56,880 --> 00:35:58,920 Speaker 1: to your city, to anything else like that. And we've 674 00:35:58,960 --> 00:36:01,560 Speaker 1: got to get out there in front of all of 675 00:36:01,600 --> 00:36:04,640 Speaker 1: our tens of millions of fans and convince them that 676 00:36:04,719 --> 00:36:06,560 Speaker 1: our league is the league that they want to pay 677 00:36:06,560 --> 00:36:09,400 Speaker 1: attention to. And as we do that, and you know, 678 00:36:09,440 --> 00:36:13,080 Speaker 1: we have already millions of followers on these leagues themselves, 679 00:36:13,520 --> 00:36:16,319 Speaker 1: we want to bring on more sponsors. And I think 680 00:36:16,360 --> 00:36:20,080 Speaker 1: the value that all investors see in sports leagues is rights. Right, 681 00:36:20,200 --> 00:36:23,880 Speaker 1: you have Amazon and Apple, you have more competitors in 682 00:36:23,960 --> 00:36:27,160 Speaker 1: the market than you've ever had before, and and we 683 00:36:27,200 --> 00:36:29,319 Speaker 1: want to we want to build a league the fans like, 684 00:36:29,640 --> 00:36:33,239 Speaker 1: but also that buyers and media rights like. Now, the 685 00:36:33,320 --> 00:36:35,960 Speaker 1: goal I know initially was to build this audience. Fifteen 686 00:36:36,080 --> 00:36:39,520 Speaker 1: twenty eight year old who love sports but aren't consumed 687 00:36:39,520 --> 00:36:42,879 Speaker 1: by it the way their parents are. What is a young, healthy, 688 00:36:42,920 --> 00:36:47,359 Speaker 1: sports loving audience actually look like. So, I'd say, first 689 00:36:47,400 --> 00:36:50,400 Speaker 1: and foremost, they probably consume it in a lot of 690 00:36:50,440 --> 00:36:53,160 Speaker 1: different places. And I think that's probably true of you 691 00:36:53,239 --> 00:36:55,560 Speaker 1: and me to some extent as well. There's no single 692 00:36:55,719 --> 00:37:00,480 Speaker 1: platform for sports anymore. You're kind of aggregating your information. 693 00:37:00,880 --> 00:37:03,680 Speaker 1: But I'd say, really two things. One is they want 694 00:37:03,680 --> 00:37:06,759 Speaker 1: to see athletes who kind of are like them. They 695 00:37:06,760 --> 00:37:10,640 Speaker 1: can be aspirational towards. Doesn't mean that NBA or NFL 696 00:37:10,680 --> 00:37:13,560 Speaker 1: athletes aren't amazing. They are, but the gap between those 697 00:37:13,600 --> 00:37:16,920 Speaker 1: athletes and I think our athletes in the fan is smaller. 698 00:37:17,400 --> 00:37:20,280 Speaker 1: And I'd say they want to be participants. They want 699 00:37:20,400 --> 00:37:23,880 Speaker 1: to not just be expected to sit on the couch 700 00:37:23,960 --> 00:37:26,200 Speaker 1: and watch, but they want to have input. They want 701 00:37:26,200 --> 00:37:28,560 Speaker 1: to be spoken to. You know, when I talked to 702 00:37:28,640 --> 00:37:31,600 Speaker 1: young fans, they tell me like, I want to be seen, 703 00:37:31,760 --> 00:37:34,440 Speaker 1: I want to be heard for what I bring. And 704 00:37:34,480 --> 00:37:38,520 Speaker 1: I think that that's obviously true across content and music 705 00:37:38,640 --> 00:37:42,040 Speaker 1: and all aspects of culture. Like gen Z and millennials, 706 00:37:42,080 --> 00:37:43,839 Speaker 1: they want to put their stamp on it. They don't 707 00:37:43,920 --> 00:37:45,840 Speaker 1: just want to consume it, and that's what we have 708 00:37:45,920 --> 00:37:48,799 Speaker 1: to figure out how to continue to do as sports leagues. 709 00:37:49,239 --> 00:37:51,200 Speaker 1: I know you're also working on n f T s. 710 00:37:51,280 --> 00:37:53,880 Speaker 1: Of course, there's been some skepticism about how big the 711 00:37:54,000 --> 00:37:56,760 Speaker 1: n f T market can actually be. What are you betting. 712 00:37:57,000 --> 00:37:59,960 Speaker 1: I'm betting that n f t s are not an 713 00:38:00,040 --> 00:38:02,359 Speaker 1: didn't of themselves, but there are means to an end, 714 00:38:02,719 --> 00:38:04,680 Speaker 1: and so if we can use n f t s 715 00:38:04,719 --> 00:38:08,560 Speaker 1: to give our audience a chance to participate, to empower 716 00:38:08,640 --> 00:38:13,360 Speaker 1: them to activate their voice in the space, then that's 717 00:38:13,400 --> 00:38:17,239 Speaker 1: that's amazing. If if we just think about it as oh, 718 00:38:17,320 --> 00:38:20,279 Speaker 1: here's another revenue stream, or we should do the same 719 00:38:20,280 --> 00:38:22,759 Speaker 1: thing as everyone else, I don't think we'll realize the 720 00:38:22,760 --> 00:38:26,480 Speaker 1: full potential. But really, at the core, blockchain and n 721 00:38:26,480 --> 00:38:31,680 Speaker 1: f t s are about decentralized participation and activating the audience, 722 00:38:31,680 --> 00:38:33,719 Speaker 1: and that's always at the core of what we do. 723 00:38:33,800 --> 00:38:35,360 Speaker 1: So in some way I think of n f T 724 00:38:35,480 --> 00:38:37,480 Speaker 1: is the same way I think it's social media, not 725 00:38:37,640 --> 00:38:40,319 Speaker 1: in an end of themselves, but like a platform to 726 00:38:40,400 --> 00:38:44,640 Speaker 1: do more for the audience. Interesting, We'll keep watching overtime CEO, 727 00:38:44,719 --> 00:38:47,400 Speaker 1: Dan Porter, thanks for thank you for having me all right, 728 00:38:47,480 --> 00:38:50,000 Speaker 1: that does it For this edition of Bloomberg Technology. Tune 729 00:38:50,000 --> 00:38:52,160 Speaker 1: in on Wednesday. We're gonna hear from Roadblocks CEO David 730 00:38:52,200 --> 00:38:56,200 Speaker 1: Buzuki after their second quarter results. Shares are plunging in 731 00:38:56,280 --> 00:38:58,239 Speaker 1: late trading after a miss on booking. We're going to 732 00:38:58,280 --> 00:39:00,880 Speaker 1: talk about that, plus what's next for the metaverse, of course, 733 00:39:00,920 --> 00:39:03,440 Speaker 1: and David Sachs, one of the many people in Elon 734 00:39:03,520 --> 00:39:07,759 Speaker 1: Musk's inner circles subpoenaed by Twitter. This is Bloomberg