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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is a

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Speaker 1: live from coast to coast with Caroline Hide.

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Speaker 2: In New York and Eva Low in San Francisco.

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Speaker 3: This is Bloomberg Tech. Coming up, Apple and Amazon end

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Speaker 3: this week. In tech earnings, we'll discuss Apple's global growth come.

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Speaker 4: Back, plus Reddit surges on a record profit we discussed

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Speaker 4: with the company's COO Gen Wong, and we'll.

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Speaker 3: Be joined by Roadblock CEO Dave Bazooski to break down

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Speaker 3: the company's earnings and it's advertising pushed later this hour.

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Speaker 4: But let's get to the macro perspective first, ed because

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Speaker 4: it's pretty ugly out there. In fact, we're having the

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Speaker 4: worst day and announst that one hundred since April, the

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Speaker 4: worst week since May. And that's as we get that

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Speaker 4: so called resilient jobs market with some cracks showing and

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Speaker 4: some revisions for previous months. When it comes to the

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Speaker 4: labor force, that bagstown stocks sends bonds higher. But I'm

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Speaker 4: also looking well the implications of tariffs when we are

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Speaker 4: fifteen point two percent general average now for tariffs on

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Speaker 4: goods coming into the United States. There's karity there, but

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Speaker 4: is there long term negotiation still to come. What does

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Speaker 4: it mean for tech stocks? More broadly, let's get to

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Speaker 4: Klee lines, just the breakdown Klee of what we learned

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Speaker 4: on where countries are standing right now.

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Speaker 5: Well, Caroline, there's many different layers to this. The global

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Speaker 5: baseline minimum teriff rate will stay at ten percent, despite

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Speaker 5: some previous suggestions from the President that it could go higher.

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Speaker 5: But indeed the teriff rates will go higher for countries

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Speaker 5: that have larger trade surpluses with the United States, from

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Speaker 5: fifteen percent to well beyond that for some countries who

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Speaker 5: were able to secure deals with the United States an advancer,

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Speaker 5: of course, had already received letters from the President. That

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Speaker 5: includes the likes of Canada, for example, which will have

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Speaker 5: a thirty five percent tariff on it's goods, though there

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Speaker 5: is a carve out for those that are compliant with

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Speaker 5: the USMCA Trade Agreement, or a country like Switzerland, which

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Speaker 5: will see a thirty nine percent rate in aggregate. According

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Speaker 5: to our estimates here at Bloomberg e if these tariffs

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Speaker 5: go into effect and stick, it will take the average

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Speaker 5: tariff rate for the United States up to fifteen point

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Speaker 5: two percent from the current thirteen point three percent, which

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Speaker 5: brings us back to levels last scene in the World

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Speaker 5: War two era, and it's well above the little more

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Speaker 5: than two percent rate on average that we saw before

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Speaker 5: President Trump took office. That said, it is still an if.

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Speaker 5: According to the orders that the President signed last night,

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Speaker 5: these duties will not begin to be collected until August seventh,

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Speaker 5: so about a week to go here.

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Speaker 2: That does leave some.

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Speaker 5: Wiggle room for countries to either continue negotiations, try to

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Speaker 5: reach deal, or maybe get an extension, like we saw

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Speaker 5: with Mexico yesterday, which was able to secure a ninety

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Speaker 5: day extension of their current agreement. Also, we need to

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Speaker 5: consider that China is still a question mark that August

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Speaker 5: twelfth deadline is looming. The President has not signed off

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Speaker 5: yet on an extension for the trade detente between those

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Speaker 5: two countries, and he also had some measures that do

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Speaker 5: seem aim specifically at China in what he signed last night,

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Speaker 5: with a forty percent tariff that is going to be

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Speaker 5: applied to so called transshipped goods, though it's not exactly

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Speaker 5: clear how those rulings will be made or how that.

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Speaker 2: Will be enforced.

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Speaker 5: Also unclear is what sectoral terraces could still come into

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Speaker 5: the picture, as they're still ongoing Section two thirty two

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Speaker 5: investigations into things like pharmaceuticals and semiconductors, and we're awaiting

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Speaker 5: those outcomes as well.

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Speaker 4: Tailey lines with a breakdown. Thank you so much. Look,

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Speaker 4: let's get to your micro picture because there's trade, but ed,

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Speaker 4: you're looking at earnings.

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Speaker 3: Yeah, and earnings is a big story in the world

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Speaker 3: of technology this morning. Amazon is an AI story, and

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Speaker 3: it's a cloud story. Look at the drop on the

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Speaker 3: stock significant. The concern is the outlook for operating income.

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Speaker 3: So much revenue comes from Amazon dot Com, but the

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Speaker 3: majority of operating income from AWUS, and the outlook seen

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Speaker 3: as weak or conservative. But AWS in the period Gone

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Speaker 3: grew seventeen percent in a quarter where Microsoft Azure grew

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Speaker 3: thirty nine percent and a quarter where Google Cloud Platform

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Speaker 3: gained some territory.

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Speaker 6: There's pressure there.

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Speaker 3: Apple beat across every metric in the June quarter GONE

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Speaker 3: and told us in the September quarter mid to high

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Speaker 3: single digit percentage growth.

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Speaker 6: But everyone this.

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Speaker 3: Morning carrow asking about pull in or pull forward, And

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Speaker 3: what Apple said was in April in the United States,

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Speaker 3: one percentage point of growth was people front running tariffs,

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Speaker 3: but they grew ten percentage points do we believe them.

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Speaker 3: The market's down one point six percent.

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Speaker 4: Let's get more analysis with an investor. Tony One's with

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Speaker 4: us is t row Price Science and Technology Fund portfolio

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Speaker 4: manager exposure to Apple. What do you think in terms

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Speaker 4: of Apple's seeming resilience and growth in China.

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Speaker 7: Yeah, I think that their you know, product is still

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Speaker 7: in demand, and they did some pricing adjustments to make

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Speaker 7: it more attractive to fitting the subsidies, and at the

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Speaker 7: end of the day, I think it's still a really

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Speaker 7: high quality of product and brand. I think that what

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Speaker 7: matters going forward is their product innovation around AI and

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Speaker 7: improving series.

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Speaker 8: You know.

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Speaker 7: I think that you had a period where Huawei came

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Speaker 7: back and took share back, and it was a competitive

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Speaker 7: environment made Apple kind of adjust a little bit to

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Speaker 7: bring more value.

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Speaker 8: But I think it's encouraging that things are getting better

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Speaker 8: in China.

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Speaker 3: They're growing again, Tony, I want you to help me

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Speaker 3: with the map here a little bit. So April largely

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Speaker 3: one percentage point of growth in the Gune quarter was

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Speaker 3: pull in pull forward from tariffs, and then Apple told

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Speaker 3: us that they would grow mid to high single digits

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Speaker 3: in the September quarter. That would indicate that there isn't

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Speaker 3: some kind of tariff front running here, that Apple's just

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Speaker 3: growing because it's growing. Do you buy that?

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Speaker 8: Yeah, well, I think that, you know, it's kind of

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Speaker 8: hard to tell, to be honest.

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Speaker 7: I think that there was a period when you were

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Speaker 7: rushing to Apple stores to buy some iPhones before the terrorists,

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Speaker 7: but I feel like that quickly subsided and you know,

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Speaker 7: that was resolved relatively in short order. And so I

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Speaker 7: think that what matters here is the forward look. You know,

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Speaker 7: as investors, you're probably looking more towards what they do

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Speaker 7: with the next iPhone cycle. Fold the ball in addition,

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Speaker 7: like services was really strong, and so there was a

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Speaker 7: fear that what happens with uh, you know, Google search as.

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Speaker 8: Well as kind of the the app store ruling where

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Speaker 8: people are circumventing the app store.

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Speaker 7: It seems like that's like actually been okay, and so

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Speaker 7: going forward, I think that it's less about like was

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Speaker 7: there a little pull in or by more of the

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Speaker 7: iPhone cycle coming coming up that people aren't focused on.

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Speaker 4: So Tony, when does the real pivot point come? When

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Speaker 4: is it that you have confidence to add exposure and

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Speaker 4: feel that Tim Cook and the team are on top

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Speaker 4: of generative AI, of the opportunity at hand of innovation.

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Speaker 7: Look, I think Tim Cook and the team they're really

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Speaker 7: talented and their world's class manufacturers and you know, their

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Speaker 7: product leadership.

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Speaker 8: You'll be built that over decades.

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Speaker 7: And so I don't think you can count about in

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Speaker 7: terms of where the stock at has been. It's like

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Speaker 7: the market break considerably in a market that's been super

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Speaker 7: beta fuel and risk taking. And so you know, if

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Speaker 7: the market turned like Apple, I think is a safe table.

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Speaker 7: And then if you look at kind of the momentum

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Speaker 7: they're building like things, things are probably going to get

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Speaker 7: better over the next twelve months. And I do think that,

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Speaker 7: you know, they can do a lot within AI. They're

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Speaker 7: probably you know, not rushing to commit to anyone one partner.

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Speaker 7: You know, they own the ecosystem and so to me, like,

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Speaker 7: as long as the iPhone is still the main, you know,

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Speaker 7: channel for AI, I think that's that's really important.

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Speaker 3: Talent wasn't mentioned on the call, but the final question

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Speaker 3: was about M and A in the context of AI

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Speaker 3: and what Tim Cook said, And I know because I

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Speaker 3: put it in the top live blog and then I

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Speaker 3: screenshotted it. We are very open to m and a

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Speaker 3: Tim Cook two fifty seven pm Pacific time, Thursday, July first.

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Speaker 3: Is that a starter gun or signal particularly to investment

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Speaker 3: bankers or do you expect Apple to stay sort of

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Speaker 3: muted in disciplined on that front, I think.

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Speaker 7: The Apple is very muted, and I always say muted,

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Speaker 7: but they're very disciplined, and I think that they have

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Speaker 7: like a very very strong focused in what matters in

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Speaker 7: their direction. I mean, for a long period of time,

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Speaker 7: you can put all their products on one table and

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Speaker 7: to be really great at what they do. And so

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Speaker 7: I don't think they're going to be muted. I think

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Speaker 7: they're going to be disciplined and focused, and they have

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Speaker 7: made acquisitions that can really I think, plug into the

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Speaker 7: ecosystem enhance their talent.

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Speaker 8: I don't think they're going to go to a really.

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Speaker 7: Big, splashy acquisition, but if you take a step back,

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Speaker 7: they're generating a ton of capital and there's a lot

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Speaker 7: of potential for improvement.

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Speaker 3: And via em and a Telly one on the tray price.

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Speaker 3: Great to have you back on Bloomberg Tech. Thank you

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Speaker 3: very much. Let's stick with earnings and turn in part

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Speaker 3: to Amazon.

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Speaker 6: I'm actually going to.

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Speaker 3: Keep going with Apple as well with Laura Martin, who

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Speaker 3: covers the broad gamut of tech. But and listened you

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Speaker 3: were listening there to Tony Wright. I just wondered if

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Speaker 3: you had any response difference of opinion on any of

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Speaker 3: the ground that we covered.

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Speaker 9: Yes, I would be much more negative.

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Speaker 10: I think the Apple stock cannot work without an Apple

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Speaker 10: iPhone replacement cycle. And Tim Cook said on the call

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Speaker 10: that they have twenty AI jenerative AI capabilities involved in

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Speaker 10: its current iPhone. But next year we're going to get

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Speaker 10: really the Apple intelligence step up.

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Speaker 9: So that's two years after.

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Speaker 10: I originally promised it, which means we're not going to

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Speaker 10: get an iPhone replacement cycle this year in September. It

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Speaker 10: would be next year at the earliest, which means I

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Speaker 10: don't think the stock can work. I don't think it

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Speaker 10: can outperform. Meanwhile, when you listen to Alphabet, they've got

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Speaker 10: Google Gemini, and they are incorporating jenerative AI features in

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Speaker 10: every one of their products, including Android, which is the

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Speaker 10: primary competitor here. So you and I aren't incentive to

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Speaker 10: go out and replace our iPhones, which means our iPhones

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Speaker 10: are getting another year older, another a year older, and

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Speaker 10: at some point, if the one of the Android version

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Speaker 10: runs ahead with some cool feature that all of us

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Speaker 10: want to try or can't live without, we are more

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Speaker 10: likely to shake loose from that iOS ecosystem because they

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Speaker 10: aren't showing us anything that keeps us there as these

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Speaker 10: iPhones age and we want to replace our iPhones with

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Speaker 10: something new.

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Speaker 4: Meanwhile, don't She's doing a lot for Sansung foldable phones

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Speaker 4: and plenty of others on the market right now. I

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Speaker 4: just pivot therefore to Amazon, which does have hardware. But look,

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Speaker 4: we're looking at the growth story of cloud right now.

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Speaker 4: In AWS, seventy percent was exactly where Amnis wanted it

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Speaker 4: to be, but did just pale into comparison compared to

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Speaker 4: where Azure was and where Google is in terms of cloud.

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Speaker 10: Yeah, so what they said was that there was real

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Speaker 10: margin pressure here, right. Margins went to thirty two percent,

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Speaker 10: down from thirty nine percent last quarter, and like Google's

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Speaker 10: cloud margins were through the roof, so were Microsoft.

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Speaker 9: So when you have they're all capacity constraints.

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Speaker 10: So we would have forgiven Amazon the seventeen percent growth

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Speaker 10: rate and revenue if their margins had stayed at that

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Speaker 10: very high sort of forty percent level, because they're out

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Speaker 10: of capacity, so they should be like charging a lot

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Speaker 10: for anybody that uses demand in their cloud.

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Speaker 6: But they didn't.

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Speaker 10: They were under margin pressure, so I think people didn't

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Speaker 10: like that. I think that My opinion is they're losing

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Speaker 10: business because their competitors are price competing and taking away clients.

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Speaker 10: You know, Apple's still the biggest. There's sixty five percent

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Speaker 10: bigger in cloud than the next closest guy they in

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Speaker 10: the business. And he made the point that eighty five

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Speaker 10: percent of companies are still on physical servers on premise

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Speaker 10: and all of those companies need to move to the cloud.

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Speaker 10: And Amazon it's the biggest. So I think this is

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Speaker 10: a short term problem. But boy is the market mad.

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Speaker 10: I mean, investors are mad about these numbers coming out

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Speaker 10: of Amazon, but.

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Speaker 4: They're quite often mad at Amazon because Amazon is willing

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Speaker 4: to say sorry, profit tomorrow, profit the next quarter, for now,

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Speaker 4: I invest in my business. Did he sound bullish enough

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Speaker 4: on the general to ay opach opportunity, because goodness, they're

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Speaker 4: intertwining it left, right and center as well.

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Speaker 10: You know, maybe I think, look, I think this is

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Speaker 10: the right guy in the seat right.

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Speaker 9: This guy is the one who started founded cloud.

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Speaker 10: And did extent Cloud is either under siege or doing

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Speaker 10: something wrong, or Wall Street's just mad.

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Speaker 9: This is the guy to fix it like this isn't

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Speaker 9: a CEO from a different business, this is his core business.

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Speaker 10: I think Wall Street's a little mad that they're spending

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Speaker 10: money on Kuyper, which is not making revenue. Alexa plus

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Speaker 10: ten years, we still don't have a dollar of revenue,

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Speaker 10: but a ton of expenses, and they're doing same day

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Speaker 10: delivery in urban centers, all of which feels.

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Speaker 9: Like a lot of capital to spend where you're a price.

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Speaker 3: Can I ask you, Andy Jesse said, quote very early

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Speaker 3: days in artificial intelligence across all businesses, very quickly. Do

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Speaker 3: we have any better understanding of Amazon's AI story than

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Speaker 3: we do Apples, which gets, of course scrutinized a lot.

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Speaker 9: Yes, much better. They're incorporate.

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Speaker 10: They have a very clear AI strategy w is to

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Speaker 10: host everybody else's AI cloud on theirs. Remember Google's proprietary,

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Speaker 10: Microsoft proprietary. Amazon's strategy is to host all large language models.

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Speaker 9: It just wants the cloud fees.

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Speaker 4: Laura Martin Kimming it shortened sweeten to the point we

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Speaker 4: so appreciate stay well, have the good rest of the weekend. Meanwhile,

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Speaker 4: coming up we stick with tech earnings one that actually

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Speaker 4: Laura Covers has read it. The COO Jen Wong was

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Speaker 4: fair to discuss explosive sales.

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Speaker 2: Both as a bluebo.

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Speaker 3: Tech shares have Reddit absolutely surging today, up more than

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Speaker 3: twenty percent, biggest jump since the first week of April.

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Speaker 3: The company reported its most profitable quarter today and projected

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Speaker 3: sales for the third quarter that were above and this estimates.

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Speaker 6: Reddit COO Gen Wong joins.

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Speaker 3: Us now for more and it's like one of those

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Speaker 3: quarters where should we just start with the basics. Advertising

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Speaker 3: was really strong in the cord of gone. Why was

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Speaker 3: it so strong? Which geographies were good? What are you

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Speaker 3: doing that makes Reddit so attractive relative to other platforms?

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Speaker 11: And thanks for having me.

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Speaker 12: It was a really strong quarter across the board for Reddit,

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Speaker 12: and in terms of revenue, we saw broad based strength

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Speaker 12: across all the verticals. We saw geographic strength in the

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Speaker 12: US and in the rest of world, growing over seventy

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Speaker 12: percent in both geographies, we.

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Speaker 11: Saw users grow twenty one percent.

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Speaker 12: Obviously, advertising revenue group by eighty four percent year year,

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Speaker 12: which is truly differentiated. We grew active advertising by fifty

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Speaker 12: percent year every year and you can see across the

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Speaker 12: funnel both our lower funnel convergent objective plus brand, we're

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Speaker 12: both big contributors to the results in Q two.

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Speaker 11: So again, broad based strength in.

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Speaker 2: The it's surprised and investors a surprised analysts.

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Speaker 4: Did any of it surprise you, Jen, any verticals that

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Speaker 4: surprised you, any geographies that surprised you.

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Speaker 11: I think this is.

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Speaker 12: A continuation and an output of our investments.

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Speaker 11: We feel really good about our strategy and our roadmap.

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Speaker 12: We've been investing in our capabilities to make every impression

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Speaker 12: more valuable for marketers over the last couple of years,

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Speaker 12: working on that lower funnel objective, and I think now

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Speaker 12: we're seeing the benefits of all the value we're.

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Speaker 11: Delivering to our customers.

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Speaker 12: The team's been executing really well. We've been making investments

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Speaker 12: and expanding our sales team across verticals, across geographies that's

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Speaker 12: coming in and supporting the broad based strength. So we

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Speaker 12: feel really good about the investments we've made. I think

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Speaker 12: our work is working.

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Speaker 3: I just typed who is Jen Wong into Reddit answers,

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Speaker 3: and it says Genwong is a prominent figure in the

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Speaker 3: world of tech and business and COO of Reddit, but

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Speaker 3: I find it an interesting tool. Rights supposed to be

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Speaker 3: human led answers, but might we see ads place there?

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Speaker 3: You know, people talk about this a lot. How we

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Speaker 3: monetize on that, It's.

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Speaker 12: A great question, I think Before we get to monetization,

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Speaker 12: which I think is a huge opportunity for for Reddit,

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Speaker 12: in that space and the area of search, I think

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Speaker 12: we have an opportunity to build a very distinctive destination

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Speaker 12: search experience. Reddit is where people come for real perspectives

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Speaker 12: from real people, not looking for just the summary, but

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Speaker 12: looking for what the context around. You know, why did

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Speaker 12: you think that this was the best running shoe? Because

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Speaker 12: you live in heavy trails a rocky area. You know,

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Speaker 12: you're a long distance run or a short distance run.

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Speaker 11: Like all those details of.

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Speaker 12: Real human experience are brought to life in Reddit answers

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Speaker 12: and Reddit Search.

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Speaker 11: What we're doing is bringing together this capability.

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Speaker 12: In Reddit Answers, which is an LM on top of

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Speaker 12: the incredible conversation on Reddit, and integrating that with core

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Speaker 12: Reddit search so that it becomes a more fulfomed experience.

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Speaker 12: And then as we continue to grow the use of

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Speaker 12: that destination search.

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Speaker 11: I think monetization follows.

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Speaker 12: I mean, it's a lot of those queries are incredibly

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Speaker 12: just naturally commercial nature, or it's people trying to make

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Speaker 12: decisions and allocate resources and buy things, you know, to

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Speaker 12: that fit their lives.

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Speaker 4: Yeah, I mean monetization has been something you've done well

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Speaker 4: with other deals for licensing your own data to generative

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Speaker 4: AI large language models. But Jen, there's a little bit

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Speaker 4: of beef going on, perhaps with one with Anthropic. Can

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Speaker 4: you give us any update as to what's happening with

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Speaker 4: your relationships and further content licensing deals.

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Speaker 12: Yeah, I mean, I won't comment on litigation, but I

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Speaker 12: will talk about data licensing. I mean, you know, we

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Speaker 12: these were our first commercial relationships. We're a year a

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Speaker 12: year and a half in. I think we've learned a

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Speaker 12: lot and we're still learning. I think we're open to conversation.

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Speaker 12: I think what we're learning is that we and frankly

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Speaker 12: everyone can see reddits contribution to these lms, how often

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Speaker 12: Reddit is cited, how important Reddit is for people to

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Speaker 12: get the perspective that they're looking for.

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Speaker 11: And when we see that, you.

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Speaker 12: Know, I think it reveals that the fact that Reddit,

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Speaker 12: I think has never felt more essential to the Internet

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Speaker 12: and to helping people.

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Speaker 11: I think what we get.

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Speaker 12: Excited about is when we look at this is the

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Speaker 12: opportunity for ourselves, the opportunity for us to build products

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Speaker 12: around the decades of conversation on Reddit, Reddit answers and

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Speaker 12: search is one area obviously growing those communities.

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Speaker 11: In our core product. So we get really excited about that.

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Speaker 12: And you know, I think overall the value of Reddit

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Speaker 12: and conversation in this world of AI is going up.

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Speaker 3: You know, a lot of your job is flying around

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Speaker 3: the world. International markets just very quickly, how start going

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Speaker 3: getting dollars from abroad and very quickly also languages as well.

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Speaker 12: Yeah, I mean international is incredibly important to us. It's

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Speaker 12: about twenty percent of our revenue, and international revenue from

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Speaker 12: advertising grew over seventy percent in the quarter, so it's

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Speaker 12: been a growth driver for us. We're particularly active in

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Speaker 12: Europe and Amea. We're seeing really nice growth in our

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Speaker 12: target countries where we're applying AI for machine translation to

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Speaker 12: have global conversations in different languages so that people that

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Speaker 12: don't have language friction. We're also growing local communities, which

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Speaker 12: we're excited about doing some partnerships and sports and entertainment

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Speaker 12: that are really simulating the growth of local communities like

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Speaker 12: telenovelas in Brazil and football in Germany. And that user

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Speaker 12: growth that we're supporting then obviously creates a monetization opportunity.

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Speaker 4: Jen Wog, I've read it. It's wonderful to have time

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Speaker 4: with you. Thank you very much. Indeed, now coming up

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Speaker 4: Pigma shares, Actually are they managing to rise even on

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Speaker 4: day two after that monumental launch. We'll talk about the

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Speaker 4: IPOs big winners and what's next.

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Speaker 2: This is blue Bag tech.

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Speaker 13: Shares.

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Speaker 4: A Figma sold a whopping two hundred and fifteen percent

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Speaker 4: on their first day of training. That's the largest first

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Speaker 4: day pot for a US trading company, raising more than

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Speaker 4: a billion in at least three decades. That's according to

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Speaker 4: Bloomberg Data. So is this positive, this strength or is

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Speaker 4: that money left on the table for the design software maker.

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Speaker 4: Let's get to Katie Ruth for her analysis. We're actually

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Speaker 4: still clinging onto some gains in a downmarket to Dave,

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Speaker 4: and Katie feels the demand is so insatiable her three.

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Speaker 14: Clearly the window is open for tech listings, or especially

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Speaker 14: open for Pigma. Yeah, you ask a good question about

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Speaker 14: the their money left on the table of these favorite

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Speaker 14: debate obviously the cell side, which is primarily the company,

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Speaker 14: but also the top shareholders.

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Speaker 13: He sold five percent of their stakes.

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Speaker 14: Yes, they would have I'm sure loved to sell for hire,

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Speaker 14: and then you know they could have raised more money.

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Speaker 14: But I think there's a real question over what time

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Speaker 14: frame do you evaluate a first day pop on. If

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Speaker 14: you look at twenty twenty one, a lot of those

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Speaker 14: stocks eventually bottomed out.

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Speaker 3: Thinking about some of the conversations Caroline had yesterday down

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Speaker 3: at the NYIC, just fantastic classic ipo stuff right, adjusted

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Speaker 3: gross margin of ninety two percent. Is this just because

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Speaker 3: everyone loves a high margin software name, or is there

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Speaker 3: some retail trading here?

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Speaker 6: What's really happening?

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Speaker 13: Well, I think if you look at it's not just

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Speaker 13: this one.

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Speaker 14: There have been several recent tech IPOs that saw big

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Speaker 14: pops on the first day and in the recent trading,

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Speaker 14: and so I think what you're seeing here is there's

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Speaker 14: pent up demand for new tech listings.

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Speaker 13: Twenty twenty one was a blockbuster.

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Speaker 14: Year, and there was an eighteen month period where there

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Speaker 14: were zero tech IPOs, and when they first started to

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Speaker 14: come back, the market was a little bit skittish. But

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Speaker 14: I think they've decided they want tech stocks and they

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Speaker 14: want more of them.

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Speaker 3: I think that in twenty twenty five we've already picked

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Speaker 3: twenty twenty four in terms of volumes, which is exciting

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Speaker 3: Bloomberg Katie Ruth, thank you very much. Now coming up

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Speaker 3: on Bloomberg Tech when it were joined by the Roadblock

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Speaker 3: CEO David Zuki to break down the company's earnings. It's

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Speaker 3: advertising push and much much more. Are just a fantastic

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Speaker 3: way to end a week in big tech and big

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Speaker 3: tech earnings.

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Speaker 6: Stay with us. This is Bloomberg Tech. Welcome back to

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Speaker 6: Bloomberg Tech.

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Speaker 3: There's some kind of macro level economic concerns out there

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Speaker 3: in the market. I'm looking at the Magnificent seven, that

443
00:23:02,600 --> 00:23:06,800
Speaker 3: collection of megacap tech. Of course, within that Apple and Amazon,

444
00:23:06,800 --> 00:23:09,439
Speaker 3: which is actually the biggest points drag of most indices,

445
00:23:09,840 --> 00:23:12,879
Speaker 3: is an earning story. But at the same time, we

446
00:23:12,960 --> 00:23:15,720
Speaker 3: covered off area in the show Carro tariffs and tariffs

447
00:23:16,119 --> 00:23:19,000
Speaker 3: having an impact in different ways in some of those companies.

448
00:23:19,040 --> 00:23:20,560
Speaker 3: We'll get to more of that later in the Hour

449
00:23:20,800 --> 00:23:23,880
Speaker 3: one earnings. We haven't got too yet is coinbase revenue

450
00:23:23,880 --> 00:23:26,400
Speaker 3: projection missing estimates. But what I find so interesting about

451
00:23:26,400 --> 00:23:30,840
Speaker 3: coinbase is that its performance is directly tied to volatility

452
00:23:30,920 --> 00:23:33,960
Speaker 3: or in this case, a lack of volatility in crypto markets.

453
00:23:34,119 --> 00:23:36,399
Speaker 3: But that stock drop of sixteen percent is its biggest

454
00:23:36,480 --> 00:23:40,160
Speaker 3: drop since March. Very interesting, real calculation on one single name.

455
00:23:40,480 --> 00:23:42,520
Speaker 3: But there are so many to get in.

456
00:23:42,560 --> 00:23:45,800
Speaker 4: There are, And let's go back to roadblocks because the

457
00:23:45,840 --> 00:23:49,719
Speaker 4: gaming platform reported phenomenal booking increases more than fifty percent

458
00:23:49,880 --> 00:23:52,399
Speaker 4: in the last quarter daily active US account toping one

459
00:23:52,480 --> 00:23:55,080
Speaker 4: hundred and eleven million shares, So you see still trading

460
00:23:55,160 --> 00:23:58,280
Speaker 4: higher after the earnings posted yesterday morning. Moeblock's CEO David

461
00:23:58,280 --> 00:24:01,080
Speaker 4: and Bazuki joined us now Dave across the board. Growth

462
00:24:01,160 --> 00:24:03,480
Speaker 4: daily active use is particularly the older cohort. I'm looking

463
00:24:03,520 --> 00:24:05,800
Speaker 4: at hours engaged revenue bookings.

464
00:24:06,119 --> 00:24:07,720
Speaker 2: We're saying you raise your guidance.

465
00:24:08,320 --> 00:24:12,760
Speaker 4: These viral experiences grow a garden, for example, how much

466
00:24:12,760 --> 00:24:14,480
Speaker 4: are they contributing to this growth?

467
00:24:15,960 --> 00:24:18,399
Speaker 15: Hey, great to be here, and we have created an

468
00:24:18,480 --> 00:24:21,840
Speaker 15: essential really the conditions to grow a garden, in this

469
00:24:21,920 --> 00:24:27,240
Speaker 15: case growing amazing creative new experiences on roadblocks. In addition

470
00:24:27,320 --> 00:24:31,200
Speaker 15: to grow a garden, which is a cultural meme. Right now,

471
00:24:31,680 --> 00:24:35,520
Speaker 15: there's five experiences on roadblocks with more than ten million

472
00:24:35,800 --> 00:24:39,200
Speaker 15: daily active users, and I want to highlight in addition

473
00:24:39,280 --> 00:24:42,320
Speaker 15: to that great growth we saw, we saw thirteen and

474
00:24:42,400 --> 00:24:46,040
Speaker 15: up users grow daily active users sixty four percent.

475
00:24:45,800 --> 00:24:46,480
Speaker 16: Year on year.

476
00:24:47,080 --> 00:24:49,880
Speaker 15: We have a vision of ten percent of the global

477
00:24:49,920 --> 00:24:54,600
Speaker 15: gaming content market running on our platform, and this really

478
00:24:54,760 --> 00:24:56,480
Speaker 15: explosion of great new hits.

479
00:24:57,080 --> 00:24:58,800
Speaker 16: It supports that thesis.

480
00:24:58,920 --> 00:25:02,560
Speaker 15: I also want to highlight even without Grow a Garden,

481
00:25:02,840 --> 00:25:06,520
Speaker 15: we would have reported an amazing Queue two with great

482
00:25:06,600 --> 00:25:07,919
Speaker 15: year on ear growth rates.

483
00:25:08,680 --> 00:25:13,040
Speaker 4: Brook Covens there, Grow a Gardens there. Just delve into

484
00:25:13,200 --> 00:25:17,000
Speaker 4: these hits that you have. How much revenue do they

485
00:25:17,040 --> 00:25:19,320
Speaker 4: sort of supply to you? Can you break it out

486
00:25:19,400 --> 00:25:20,880
Speaker 4: on an individual win basis?

487
00:25:21,600 --> 00:25:25,040
Speaker 15: Well, I want to highlight these hits. A lot of

488
00:25:25,080 --> 00:25:27,560
Speaker 15: them have been created in the last year. In fact,

489
00:25:27,760 --> 00:25:31,960
Speaker 15: four of the top five experiences were created in the

490
00:25:32,040 --> 00:25:35,360
Speaker 15: last year. Part of our vision is there's an enormous

491
00:25:35,400 --> 00:25:39,320
Speaker 15: headroom to innovate in the gaming space around how games

492
00:25:39,359 --> 00:25:43,800
Speaker 15: are created, how people consume them, how they're social, all

493
00:25:43,840 --> 00:25:47,399
Speaker 15: of this, and we believe this innovation is driving the

494
00:25:47,440 --> 00:25:51,800
Speaker 15: ability for creators to make awesome new experiences.

495
00:25:51,080 --> 00:25:52,160
Speaker 16: On the platform.

496
00:25:52,600 --> 00:25:55,639
Speaker 15: You know, we're starting to see some of these hits

497
00:25:55,680 --> 00:25:59,440
Speaker 15: go global want to highlight. For example, a pac DAUS

498
00:25:59,520 --> 00:26:03,399
Speaker 15: grew over seventy six percent year on year, and we

499
00:26:03,560 --> 00:26:06,240
Speaker 15: still have a lot of headroom. We're we're only about

500
00:26:06,280 --> 00:26:10,480
Speaker 15: three percent of the global gaming market running on our platform,

501
00:26:10,520 --> 00:26:12,240
Speaker 15: and our vision is to get to ten percent.

502
00:26:13,800 --> 00:26:16,119
Speaker 3: Dave, I've been able to get with your team and

503
00:26:16,160 --> 00:26:19,000
Speaker 3: talk a little bit in recent months about advertising, and

504
00:26:19,000 --> 00:26:20,879
Speaker 3: one of the things I think people don't necessarily understand

505
00:26:20,880 --> 00:26:23,679
Speaker 3: about roadblocks is advertising is a revenue stream for you,

506
00:26:24,119 --> 00:26:27,359
Speaker 3: but also for the deads that the creators themselves. But

507
00:26:27,440 --> 00:26:29,560
Speaker 3: I think I'm right in saying you've never really given

508
00:26:29,640 --> 00:26:32,040
Speaker 3: us a dollar figure on how it's going. Would you

509
00:26:32,119 --> 00:26:35,399
Speaker 3: just update us on the ecosystem and the wins that

510
00:26:35,440 --> 00:26:36,520
Speaker 3: you see for roadblocks.

511
00:26:37,640 --> 00:26:41,879
Speaker 15: We do think there's a significant advertising opportunity on the platform,

512
00:26:41,920 --> 00:26:45,960
Speaker 15: and you're exactly right. All of this growth we've been sharing,

513
00:26:46,160 --> 00:26:49,399
Speaker 15: you know, bookings growth of north of fifty percent in

514
00:26:49,520 --> 00:26:53,280
Speaker 15: Q two was driven not by advertising, but by people

515
00:26:53,359 --> 00:26:58,840
Speaker 15: spending robucks on the platform. That said, there's several categories

516
00:26:58,840 --> 00:27:03,080
Speaker 15: of experiences and creators that advertising may be the best

517
00:27:03,160 --> 00:27:07,720
Speaker 15: way for them to make future revenue. Highlighting Typically our

518
00:27:07,840 --> 00:27:11,640
Speaker 15: vision is advertising for older users, not for younger users,

519
00:27:11,680 --> 00:27:15,280
Speaker 15: because we're already so healthy monetarily there, and we have

520
00:27:15,520 --> 00:27:18,200
Speaker 15: launched video advertising on the platform.

521
00:27:18,280 --> 00:27:20,760
Speaker 16: We just in the last week open it up for

522
00:27:20,840 --> 00:27:21,639
Speaker 16: more creators.

523
00:27:22,080 --> 00:27:24,679
Speaker 15: I will assure you if and when we hit ten

524
00:27:24,720 --> 00:27:28,640
Speaker 15: percent of the global gaming market space, that advertising will

525
00:27:28,680 --> 00:27:31,640
Speaker 15: be a key part of that top bookings line.

526
00:27:32,440 --> 00:27:34,760
Speaker 3: I kind of want to stick with the creators because

527
00:27:34,800 --> 00:27:37,560
Speaker 3: I'm trying to always understand the ecosystem. So one thing

528
00:27:37,600 --> 00:27:41,359
Speaker 3: that you've done is help creators get licensing deals. They

529
00:27:41,440 --> 00:27:44,360
Speaker 3: might create a game, that game might be franchisable.

530
00:27:45,440 --> 00:27:46,640
Speaker 6: Why do that?

531
00:27:46,840 --> 00:27:49,600
Speaker 3: But also, like, are you kind of taking the liability

532
00:27:49,640 --> 00:27:53,480
Speaker 3: on copyright and on legal and everything else that comes

533
00:27:53,560 --> 00:27:54,440
Speaker 3: with a deal like that?

534
00:27:56,080 --> 00:27:59,880
Speaker 15: We aren't really And what we've seen two years ago,

535
00:28:00,080 --> 00:28:02,359
Speaker 15: people might have thought, well, you're not going to have

536
00:28:02,400 --> 00:28:06,439
Speaker 15: any prime sports brands on your platform, and then all

537
00:28:06,440 --> 00:28:09,320
Speaker 15: of a sudden, we have, you know, NFL Universe, a

538
00:28:09,480 --> 00:28:13,639
Speaker 15: partnership between the NFL and an existing developer on the

539
00:28:13,680 --> 00:28:18,800
Speaker 15: platform be extremely successful. What we've started talking about with

540
00:28:18,880 --> 00:28:23,800
Speaker 15: our IP platform is the ability for great brands, whether

541
00:28:23,920 --> 00:28:28,280
Speaker 15: it's for example, Stranger Things, there's Quid game from Netflix

542
00:28:28,720 --> 00:28:32,119
Speaker 15: being available for creators on the platform who want to

543
00:28:32,200 --> 00:28:35,880
Speaker 15: integrate the brand and really create a win win in

544
00:28:35,920 --> 00:28:39,040
Speaker 15: that these brands can have a lot of people interacting

545
00:28:39,080 --> 00:28:42,720
Speaker 15: with them, it can drive engagement within them. So there's

546
00:28:42,760 --> 00:28:46,320
Speaker 15: a lot of opportunity in the future to connect great brands,

547
00:28:46,760 --> 00:28:49,880
Speaker 15: great ip with the creative energy of the developers on

548
00:28:49,920 --> 00:28:50,560
Speaker 15: our platform.

549
00:28:50,800 --> 00:28:53,680
Speaker 4: I like that win win idea and the revenue share

550
00:28:53,720 --> 00:28:56,640
Speaker 4: that goes to the developers. Also what's interesting is developers

551
00:28:56,640 --> 00:29:00,440
Speaker 4: are buying from these one off makers say that grow Garden,

552
00:29:00,480 --> 00:29:02,360
Speaker 4: I think as a team who still owns about half

553
00:29:02,400 --> 00:29:04,480
Speaker 4: be sold off the other half of his business over

554
00:29:04,520 --> 00:29:06,200
Speaker 4: to New Zealand splitting point studio.

555
00:29:06,720 --> 00:29:08,800
Speaker 2: Are you helping facilitate that m and A. How do

556
00:29:08,800 --> 00:29:09,720
Speaker 2: you see your role there?

557
00:29:11,040 --> 00:29:14,320
Speaker 15: We would like to more and more make a very

558
00:29:14,920 --> 00:29:18,840
Speaker 15: liquid market there. And at our Roadblocks developer conference a

559
00:29:18,880 --> 00:29:21,200
Speaker 15: couple of years ago, I shared that as we have

560
00:29:21,280 --> 00:29:24,600
Speaker 15: a larger proportion of the gaming market running on Roadblocks,

561
00:29:24,920 --> 00:29:28,840
Speaker 15: it's not inconceivable that there will be a billion dollar

562
00:29:28,960 --> 00:29:33,360
Speaker 15: studio on the platform. We're well into the nine figures

563
00:29:33,440 --> 00:29:36,640
Speaker 15: hundreds of million hands of dollar type studios and grow

564
00:29:36,760 --> 00:29:40,240
Speaker 15: Garden was a great example of an initial small team

565
00:29:40,760 --> 00:29:44,840
Speaker 15: working with Jendell, who acquired part of it, and it

566
00:29:44,880 --> 00:29:46,880
Speaker 15: was a deal that was a win win deal. The

567
00:29:46,920 --> 00:29:49,880
Speaker 15: original creators did very well and Grow Garden has been

568
00:29:49,960 --> 00:29:54,600
Speaker 15: refined and tuned into now the largest simultaneously played game

569
00:29:54,920 --> 00:29:58,000
Speaker 15: in the history of the Guinness Book of World Records,

570
00:29:58,000 --> 00:30:00,560
Speaker 15: going over twenty million concurrent players.

571
00:30:01,200 --> 00:30:02,200
Speaker 16: A few weeks.

572
00:30:01,880 --> 00:30:05,920
Speaker 3: Ago, Dave, about three weeks ago you came onto the

573
00:30:05,960 --> 00:30:10,440
Speaker 3: program and discuss with me generative AI video based age verification.

574
00:30:11,080 --> 00:30:11,880
Speaker 6: In the interim.

575
00:30:11,920 --> 00:30:14,720
Speaker 3: On July twenty fifth, we got the Online Safety Act,

576
00:30:14,800 --> 00:30:17,360
Speaker 3: and which will have an impact on you. Could you

577
00:30:17,440 --> 00:30:22,000
Speaker 3: just quantify how that those parameters might impact active users

578
00:30:22,040 --> 00:30:23,280
Speaker 3: or engagement just quickly.

579
00:30:24,800 --> 00:30:27,880
Speaker 15: I want to highlight we have always had safety as

580
00:30:27,920 --> 00:30:31,120
Speaker 15: one of our top priorities, and we're not waiting for

581
00:30:31,320 --> 00:30:36,600
Speaker 15: the law or legislation. We've innovated with age estimation on

582
00:30:36,640 --> 00:30:40,080
Speaker 15: our own because we want to keep people on our platform.

583
00:30:40,240 --> 00:30:43,360
Speaker 15: Roadblox is a place where we filter all the texts

584
00:30:43,360 --> 00:30:46,800
Speaker 15: and the voice, where we monitor for critical harms, where

585
00:30:46,800 --> 00:30:49,200
Speaker 15: there's no image sharing or any of the things that

586
00:30:49,320 --> 00:30:53,240
Speaker 15: might happen from that. So age estimation we took leadership

587
00:30:53,240 --> 00:30:55,080
Speaker 15: here in innovating and we think it's going to set

588
00:30:55,080 --> 00:30:56,960
Speaker 15: the standard for the industry.

589
00:30:58,600 --> 00:31:01,040
Speaker 3: Roadblock CEO Data. It's great to have you back on

590
00:31:01,040 --> 00:31:04,040
Speaker 3: Bloomberg Tech. Thank you very much. Now coming up, we're

591
00:31:04,080 --> 00:31:07,920
Speaker 3: standing by for SpaceX crewed Falcon nine rocket launch headed

592
00:31:08,160 --> 00:31:13,080
Speaker 3: to the International Space Station. Scrubbed yesterday. The countdown continues

593
00:31:13,120 --> 00:31:13,480
Speaker 3: for today.

594
00:31:13,520 --> 00:31:15,760
Speaker 6: We'll be right back. This is Bloomberg Tech.

595
00:31:29,680 --> 00:31:32,960
Speaker 3: We're just a couple of minutes away potentially four astronauts

596
00:31:33,000 --> 00:31:36,360
Speaker 3: set to launch to the International Space Station. Live shots

597
00:31:36,360 --> 00:31:40,160
Speaker 3: of NASA's Kennedy Space Center in Florida, Complex thirty nine A.

598
00:31:40,320 --> 00:31:43,840
Speaker 3: The astronauts on the SpaceX Falcon nine rocket in Dragon capsule.

599
00:31:43,880 --> 00:31:47,040
Speaker 3: This Dragon capsule Carrow has flown, will be at sick flight,

600
00:31:47,800 --> 00:31:50,480
Speaker 3: which is an interesting data point and milestone in and

601
00:31:50,520 --> 00:31:53,360
Speaker 3: of itself. I say potentially because I was looking at

602
00:31:53,360 --> 00:31:55,680
Speaker 3: those clouds. They're a bit worrying. I know that SpaceX

603
00:31:55,720 --> 00:31:56,960
Speaker 3: and NASA a bit worried as well.

604
00:31:57,800 --> 00:31:59,360
Speaker 2: Just talk about just.

605
00:31:59,360 --> 00:32:01,720
Speaker 4: What this means for Fulcan nine to zero and the

606
00:32:01,800 --> 00:32:04,840
Speaker 4: symbolic nature. It was but a few weeks ago that

607
00:32:04,880 --> 00:32:07,720
Speaker 4: Elon Musk was threatening to decommission it almost in his

608
00:32:08,000 --> 00:32:09,800
Speaker 4: tet tet with President Trump.

609
00:32:10,480 --> 00:32:14,400
Speaker 3: Absolutely right and absolutely so you know, NASA and America

610
00:32:14,480 --> 00:32:17,320
Speaker 3: rely on SpaceX to move astronauts and human beings to

611
00:32:17,440 --> 00:32:21,280
Speaker 3: and from ISS. If this mission is successful and goes

612
00:32:21,320 --> 00:32:24,200
Speaker 3: off today, two hundred and ninety people will have been

613
00:32:24,240 --> 00:32:27,560
Speaker 3: to ISS in its history. Sixty eight of those will

614
00:32:27,600 --> 00:32:30,480
Speaker 3: have been flown by SpaceX in the modern era. So

615
00:32:30,520 --> 00:32:33,120
Speaker 3: it gives you a sense proportionately of how much SpaceX

616
00:32:33,160 --> 00:32:36,680
Speaker 3: has dominated this space SpaceX has been warning us about lightning.

617
00:32:36,680 --> 00:32:40,239
Speaker 3: We were scrubbed yesterday. But that is the story that

618
00:32:40,280 --> 00:32:43,520
Speaker 3: you need to understand. You know, SpaceX is the de

619
00:32:43,640 --> 00:32:47,640
Speaker 3: facto market leader of moving not just humans but payload

620
00:32:47,680 --> 00:32:49,000
Speaker 3: to orbit generally speaking.

621
00:32:49,120 --> 00:32:50,800
Speaker 4: Yeah, and go back to the fact that this is

622
00:32:51,040 --> 00:32:54,200
Speaker 4: a sixth flight. It was originally commissioned for five flights.

623
00:32:54,240 --> 00:32:56,600
Speaker 4: But they're trying to sweat this asset, right, This is

624
00:32:56,640 --> 00:32:57,600
Speaker 4: all about bringing.

625
00:32:57,360 --> 00:32:58,760
Speaker 2: The cost down.

626
00:33:00,120 --> 00:33:04,640
Speaker 3: Yeah, I mean, look, the economics have changed vastly under SpaceX.

627
00:33:04,640 --> 00:33:06,240
Speaker 3: I'm keeping an arm on the clock because if we

628
00:33:06,640 --> 00:33:09,160
Speaker 3: tip over T minus one minute, it's a pretty good

629
00:33:09,200 --> 00:33:12,760
Speaker 3: signal that we will be launching in the sixty seconds time.

630
00:33:13,800 --> 00:33:16,280
Speaker 3: You know, the ISS has a limited shelf life. It's

631
00:33:16,280 --> 00:33:19,800
Speaker 3: going to be decommissioned beyond twenty thirty and literally crashed

632
00:33:19,840 --> 00:33:23,239
Speaker 3: into the ocean. But it needs servicing, and so you know,

633
00:33:23,280 --> 00:33:25,280
Speaker 3: SpaceX right now is the only option. We have some

634
00:33:25,320 --> 00:33:29,840
Speaker 3: reporting this week that the interim chief of NASA, which

635
00:33:29,880 --> 00:33:33,280
Speaker 3: is Transport Secretary Sean Duffy, met with his Russian counterpart.

636
00:33:33,320 --> 00:33:36,600
Speaker 3: There will be a Russian astronaut aboard this Crew eleven mission.

637
00:33:36,920 --> 00:33:40,120
Speaker 3: But if SpaceX wasn't there, then the only other option

638
00:33:40,160 --> 00:33:42,960
Speaker 3: for the United States would be Russia, which in this climate, Yeah.

639
00:33:42,920 --> 00:33:44,960
Speaker 4: They'm been told to go for launched and this is

640
00:33:45,000 --> 00:33:48,560
Speaker 4: symbolic from a geopolitical perspective on who is on board.

641
00:33:49,560 --> 00:33:52,160
Speaker 3: Yeah, we'll get to the crew. But you know, I

642
00:33:52,160 --> 00:33:54,080
Speaker 3: think this might be a first for Bloomberg Tech if

643
00:33:54,080 --> 00:33:55,360
Speaker 3: we ever carried a launch live.

644
00:33:55,480 --> 00:33:57,960
Speaker 6: I don't know. But with ten seconds on the clock,

645
00:33:58,160 --> 00:33:59,000
Speaker 6: let's listen.

646
00:33:58,720 --> 00:34:10,359
Speaker 17: In ten nine eight, seven, six, five four three two

647
00:34:10,560 --> 00:34:13,719
Speaker 17: one kitson pitches full power and lift.

648
00:34:13,840 --> 00:34:16,840
Speaker 6: Go Falcon, go back, go through.

649
00:34:18,840 --> 00:34:21,640
Speaker 18: Together we rise as a space that Scroll eleven the

650
00:34:21,680 --> 00:34:23,400
Speaker 18: heads up to the International Space.

651
00:34:23,200 --> 00:34:25,400
Speaker 1: State vehicles with pitching down range.

652
00:34:25,800 --> 00:34:30,240
Speaker 18: One point seven million pounds US phenomenal propelling Falcon nine

653
00:34:30,480 --> 00:34:33,960
Speaker 18: as the vehicle pitching down range and making its way

654
00:34:34,040 --> 00:34:37,920
Speaker 18: up the East coast and we'll soon join Expedition seventy

655
00:34:37,920 --> 00:34:40,680
Speaker 18: three of the Orbiting Laboratory. So far getting good call

656
00:34:40,680 --> 00:34:42,279
Speaker 18: outs on that first stage performance.

657
00:34:47,440 --> 00:34:50,680
Speaker 19: We are now t plus thirty five seconds into the

658
00:34:50,800 --> 00:34:55,600
Speaker 19: Crew eleven mission on board Dragon and Falcon nine. The

659
00:34:55,680 --> 00:34:58,840
Speaker 19: Thalcon nine engines down are throwing down.

660
00:34:58,640 --> 00:35:01,720
Speaker 2: To power in colementary or not not to.

661
00:35:01,600 --> 00:35:04,120
Speaker 19: Help pass through the period of max Q or maximum

662
00:35:04,120 --> 00:35:07,520
Speaker 19: aerodynamic pressure on the vehicle during a cent max qu.

663
00:35:10,800 --> 00:35:12,080
Speaker 6: You just had max.

664
00:35:11,920 --> 00:35:12,560
Speaker 13: Q right there.

665
00:35:15,600 --> 00:35:18,000
Speaker 16: Falcon nine is supersonic hell.

666
00:35:22,920 --> 00:35:25,279
Speaker 18: One minute nine seconds into what is a little bit

667
00:35:25,280 --> 00:35:29,040
Speaker 18: more lost up a nine minute flight up till as

668
00:35:29,120 --> 00:35:30,680
Speaker 18: Dragon continuing.

669
00:35:33,640 --> 00:35:36,799
Speaker 3: Got so currently traveling fifteen hundred kilometers no hour is

670
00:35:36,880 --> 00:35:40,319
Speaker 3: the SpaceX Falcon nine with Dragon on top, goes through

671
00:35:40,320 --> 00:35:42,680
Speaker 3: Earth's atmosphere or get up to around like fifty five

672
00:35:42,760 --> 00:35:45,560
Speaker 3: hundred and fifty six hundred miles per hour. When it

673
00:35:45,600 --> 00:35:48,360
Speaker 3: gets to that orbital height, you're talking like seventeen thousand,

674
00:35:48,400 --> 00:35:51,239
Speaker 3: five hundred miles per hour. They called the moment of

675
00:35:51,280 --> 00:35:54,200
Speaker 3: max Q carro, which is the moment where the rockets

676
00:35:54,280 --> 00:35:58,080
Speaker 3: undermost stress you know from a from a G force perspective,

677
00:35:58,719 --> 00:36:02,320
Speaker 3: passing through Earth's atmosphe that rough air that it passes

678
00:36:02,400 --> 00:36:05,400
Speaker 3: through for the next key moment is about I don't know,

679
00:36:05,480 --> 00:36:08,560
Speaker 3: let's say thirty seconds away, and that's where that first stage,

680
00:36:08,600 --> 00:36:11,880
Speaker 3: the main booster you have main engine cutoff or Miko,

681
00:36:11,960 --> 00:36:14,560
Speaker 3: and it's kind of an important moment because from there

682
00:36:14,719 --> 00:36:17,880
Speaker 3: you'll get the two stages separating, and then it's like

683
00:36:18,040 --> 00:36:21,120
Speaker 3: literally fully automated. It's I was going to say clockwork,

684
00:36:21,200 --> 00:36:25,880
Speaker 3: but it's rocket science and it's pretty flawless most of

685
00:36:25,880 --> 00:36:26,320
Speaker 3: the time.

686
00:36:26,840 --> 00:36:30,600
Speaker 4: And it Mike thinking, who's the pilot from NASA veteran

687
00:36:30,640 --> 00:36:35,680
Speaker 4: on these three previous missions, we understand managing to ensure

688
00:36:35,760 --> 00:36:38,759
Speaker 4: that we get safely these people on board, these four

689
00:36:38,840 --> 00:36:43,200
Speaker 4: crew members up to ISS so pretty integral moment, and

690
00:36:43,239 --> 00:36:45,719
Speaker 4: we wonder just how their bodies are feeling on board

691
00:36:45,760 --> 00:36:47,319
Speaker 4: right now? Can you just give us a sense of

692
00:36:47,360 --> 00:36:49,960
Speaker 4: what it's like to experience this sort of force.

693
00:36:50,760 --> 00:36:52,760
Speaker 3: I don't know, because I've never been on a rocket,

694
00:36:52,840 --> 00:36:57,319
Speaker 3: but no, it's immense stress on the body. We just

695
00:36:57,360 --> 00:37:00,920
Speaker 3: saw that perfect shot of first and second stage separations.

696
00:37:01,000 --> 00:37:03,920
Speaker 3: What you're looking at is the single engine attached to

697
00:37:03,920 --> 00:37:06,880
Speaker 3: the second stage at the base of dragon capsule. You

698
00:37:06,960 --> 00:37:08,520
Speaker 3: raise a really good point, which is on the crew

699
00:37:08,520 --> 00:37:11,319
Speaker 3: and you asked me earlier, but we got interrupted by

700
00:37:11,320 --> 00:37:14,520
Speaker 3: the flawless launch, frankly. But one of the interesting things

701
00:37:14,560 --> 00:37:17,400
Speaker 3: about this is that the commander of this mission, Xena Cardman,

702
00:37:17,800 --> 00:37:20,359
Speaker 3: she had been due to fly on Crew nine. She's

703
00:37:20,400 --> 00:37:23,080
Speaker 3: now leading Crew eleven. But this is her first ever

704
00:37:23,160 --> 00:37:27,239
Speaker 3: spaceflight and that's notable because this shuffle was caused, if

705
00:37:27,280 --> 00:37:29,600
Speaker 3: you remember, by the star Liner program and all the

706
00:37:29,640 --> 00:37:33,560
Speaker 3: different tests that kind of went wrong and the timeline slipped.

707
00:37:33,719 --> 00:37:37,360
Speaker 3: But that's a really interesting and notable moment. We're about

708
00:37:37,360 --> 00:37:40,080
Speaker 3: three minutes and thirty seconds into this sequence.

709
00:37:41,160 --> 00:37:42,719
Speaker 6: The booster is it falls down to Earth.

710
00:37:42,719 --> 00:37:44,480
Speaker 3: We're not seeing it in shot right now, will sort

711
00:37:44,520 --> 00:37:47,480
Speaker 3: of do its burns and flips pretty soon before it

712
00:37:47,480 --> 00:37:51,040
Speaker 3: comes into shot. But again, as it stands, this is

713
00:37:51,080 --> 00:37:54,560
Speaker 3: all nominal carrow, as they say, which means everything's going fine.

714
00:37:54,680 --> 00:37:58,600
Speaker 4: Going fine for Crew eleven to then dock to relieve

715
00:37:59,280 --> 00:38:02,840
Speaker 4: Crew ten, instronauts who've been on to ISS for how long.

716
00:38:04,560 --> 00:38:07,480
Speaker 6: Many many months, I think since the spring.

717
00:38:07,800 --> 00:38:13,080
Speaker 3: The idea is that that there's a handover period, right

718
00:38:13,120 --> 00:38:17,560
Speaker 3: which is really which is really quite normal, and they

719
00:38:18,000 --> 00:38:21,040
Speaker 3: you know, in order to get there, have to dock,

720
00:38:21,400 --> 00:38:23,399
Speaker 3: and then there will be plans in place by NASA

721
00:38:23,480 --> 00:38:28,480
Speaker 3: and SpaceX to bring the existing crew back down there online.

722
00:38:28,520 --> 00:38:30,480
Speaker 3: And you know, like one of the good questions that

723
00:38:30,719 --> 00:38:33,359
Speaker 3: you raised earlier and that people always ask in our

724
00:38:33,400 --> 00:38:34,879
Speaker 3: coverage is like what.

725
00:38:34,840 --> 00:38:37,640
Speaker 6: Are they going for? And part of.

726
00:38:37,600 --> 00:38:40,280
Speaker 3: It is, like I'm repeating myself a little bit. ISS

727
00:38:40,320 --> 00:38:44,080
Speaker 3: gets decommissioned in about six years time. You know, it's

728
00:38:44,120 --> 00:38:46,840
Speaker 3: the end of the agreement. It's served its life, but

729
00:38:46,920 --> 00:38:49,080
Speaker 3: in the interim it needs maintenance. And so as part

730
00:38:49,120 --> 00:38:51,720
Speaker 3: of the cargo payload that's going up with Crew eleven,

731
00:38:51,960 --> 00:38:54,520
Speaker 3: there'll be materials to service the humans on board, but

732
00:38:54,560 --> 00:38:58,799
Speaker 3: also like the scientific apparatus and equipment that's up there.

733
00:38:59,239 --> 00:39:02,320
Speaker 2: And let's just a little bit more. You mentioned Xena

734
00:39:02,400 --> 00:39:04,120
Speaker 2: cardman commander and.

735
00:39:04,160 --> 00:39:07,840
Speaker 4: One of the few active female commanders in recent years.

736
00:39:08,080 --> 00:39:09,240
Speaker 2: We've got Mike the pilot.

737
00:39:09,360 --> 00:39:15,000
Speaker 4: You've also got Japan involved, Russia involved. This is geopolitics

738
00:39:15,040 --> 00:39:15,719
Speaker 4: at work here.

739
00:39:16,760 --> 00:39:17,040
Speaker 8: Yep.

740
00:39:17,080 --> 00:39:20,759
Speaker 3: So JACKSA, which is the Japanese Space Agency, has sent

741
00:39:20,840 --> 00:39:23,680
Speaker 3: Kimie A Yui. This is his second space flight. He

742
00:39:23,719 --> 00:39:27,120
Speaker 3: actually went up in space twenty fifteen. And then this

743
00:39:27,200 --> 00:39:29,960
Speaker 3: is the bit, right there's the reporting that we had

744
00:39:30,000 --> 00:39:34,880
Speaker 3: today that the interim NASA chief, which is Transport Secretary

745
00:39:34,880 --> 00:39:40,120
Speaker 3: Sean Duffy, had met with his Russian counterpart. Because the

746
00:39:40,160 --> 00:39:43,920
Speaker 3: context were SpaceX not around to do this, then America,

747
00:39:44,040 --> 00:39:46,800
Speaker 3: because of what's happened with Boeing and Starliner, would probably

748
00:39:46,800 --> 00:39:51,360
Speaker 3: rely on ros Cosmos, the Russian agency, to take American

749
00:39:51,400 --> 00:39:54,919
Speaker 3: astronauts to the International Space Station. Now, in this case,

750
00:39:54,960 --> 00:39:57,600
Speaker 3: there is a Russian astronaut aboard the capsule. His name

751
00:39:57,640 --> 00:40:01,080
Speaker 3: is Oleg Klattonov. It's his first trip to space as well.

752
00:40:01,440 --> 00:40:05,360
Speaker 3: And away from whatever is happening in geopolitics and in markets,

753
00:40:06,360 --> 00:40:10,399
Speaker 3: remember that the agreement between America and Russia CARRO is longstanding,

754
00:40:11,239 --> 00:40:15,040
Speaker 3: you know, the agreement literally to cooperate on not just ISS,

755
00:40:15,080 --> 00:40:20,000
Speaker 3: but move astronauts from Earth into into outer orbit in ISS.

756
00:40:20,960 --> 00:40:24,960
Speaker 4: What's so interesting is the dominance of Eno Musk SpaceX.

757
00:40:25,000 --> 00:40:28,080
Speaker 4: Here we also think about Japan being in the mix,

758
00:40:28,200 --> 00:40:32,000
Speaker 4: and indeed Russia, as you say, alongside the United States.

759
00:40:32,200 --> 00:40:34,760
Speaker 4: It was but this week earlier, So much has happened

760
00:40:34,760 --> 00:40:37,200
Speaker 4: this week, but that Australia didn't manage to get a

761
00:40:37,280 --> 00:40:39,080
Speaker 4: suckered off the ground. Just where do we stand in

762
00:40:39,080 --> 00:40:40,239
Speaker 4: this so called space race.

763
00:40:41,120 --> 00:40:45,560
Speaker 3: So SpaceX as a private company, but an American company,

764
00:40:45,640 --> 00:40:50,040
Speaker 3: dominates the vast majority of payload to orbit around eighty

765
00:40:50,080 --> 00:40:55,040
Speaker 3: five to ninety percent, including human and non human payload.

766
00:40:55,680 --> 00:40:59,560
Speaker 3: China is increasingly doing more. You will also remember that

767
00:40:59,680 --> 00:41:02,040
Speaker 3: like there are other nations around the world. Some of

768
00:41:02,080 --> 00:41:06,040
Speaker 3: the Gulf states like Ua have space ambitions. But it

769
00:41:06,120 --> 00:41:07,839
Speaker 3: goes back to what we were talking about earlier, right,

770
00:41:07,880 --> 00:41:09,960
Speaker 3: which is the economics of launch. As we see the

771
00:41:10,000 --> 00:41:12,000
Speaker 3: booster on the left hand side of the screen re

772
00:41:12,160 --> 00:41:16,040
Speaker 3: entering Earth's atmosphere, falling down using aerodynamics, but also the

773
00:41:16,080 --> 00:41:19,960
Speaker 3: paddles at the base to orient itself and slow itself down.

774
00:41:20,680 --> 00:41:22,440
Speaker 3: On the clock, by the way, I'm jumping around a bit,

775
00:41:22,440 --> 00:41:24,759
Speaker 3: but we're seven minutes in and the kind of key

776
00:41:24,840 --> 00:41:28,600
Speaker 3: moment is about forty seconds away where we should see

777
00:41:28,600 --> 00:41:31,719
Speaker 3: that booster land back to the landing zone. But to

778
00:41:31,719 --> 00:41:35,160
Speaker 3: answer your question, yes, SpaceX dominates, but there is pressure

779
00:41:35,800 --> 00:41:39,680
Speaker 3: coming from both government sector backed and private sector backed

780
00:41:39,960 --> 00:41:42,520
Speaker 3: rivals around the world, and we're.

781
00:41:42,320 --> 00:41:44,719
Speaker 4: Just losing some connection there. We have it, will they

782
00:41:44,760 --> 00:41:51,239
Speaker 4: make a landing. It's like art ed there, we have it.

783
00:41:52,280 --> 00:41:53,719
Speaker 6: Well, it's rocket science.

784
00:41:55,600 --> 00:41:59,640
Speaker 4: Art and rocket science at work, but just remind us

785
00:41:59,680 --> 00:42:02,239
Speaker 4: because we've just been so in awe of not only

786
00:42:02,400 --> 00:42:06,120
Speaker 4: these landings and the reusable rockets, but the catch that

787
00:42:06,160 --> 00:42:09,920
Speaker 4: we've seen in the next iteration of spacecraft coming from

788
00:42:10,000 --> 00:42:10,720
Speaker 4: Elon Musk.

789
00:42:11,400 --> 00:42:15,680
Speaker 3: Yes, so Falcon nine is SpaceX's high volume vehicle and

790
00:42:15,760 --> 00:42:18,800
Speaker 3: launch system. That's what we're looking at here with Dragon

791
00:42:18,800 --> 00:42:22,680
Speaker 3: caps you're on top. But they also have Falcon Heavy,

792
00:42:22,960 --> 00:42:28,600
Speaker 3: which is used for basically higher density satellite payload. It

793
00:42:28,640 --> 00:42:31,960
Speaker 3: hasn't taken humans. And then Starships the next phase. Starship

794
00:42:32,000 --> 00:42:35,799
Speaker 3: the biggest rocket that Humankind's ever built, and I think

795
00:42:36,160 --> 00:42:39,200
Speaker 3: Elon Musk has said on X that the next full

796
00:42:39,600 --> 00:42:42,239
Speaker 3: test of Starship is going to be in the next

797
00:42:42,280 --> 00:42:46,880
Speaker 3: month or so. The mechanism for the Starship booster in

798
00:42:46,920 --> 00:42:49,759
Speaker 3: that system is, as you say, not to land it

799
00:42:49,800 --> 00:42:52,080
Speaker 3: on a landing pad, as we just demonstrated with Falcon nine,

800
00:42:52,080 --> 00:42:54,799
Speaker 3: but to catch it. And you know, we can't do

801
00:42:54,840 --> 00:42:56,719
Speaker 3: this right now because we're carrying the launch live, but

802
00:42:56,880 --> 00:42:59,200
Speaker 3: go on the internet and look at how that works.

803
00:42:59,400 --> 00:43:02,160
Speaker 3: That bit they've kind of done. They've done it successfully.

804
00:43:03,000 --> 00:43:08,560
Speaker 3: It's the ongoing spacecraft part of Starship that they're still

805
00:43:08,600 --> 00:43:10,360
Speaker 3: working out Let's.

806
00:43:10,160 --> 00:43:12,840
Speaker 4: Talk a little bit about economics here of NASA as well,

807
00:43:13,239 --> 00:43:16,520
Speaker 4: because we just see the energy behind wanting to put

808
00:43:16,600 --> 00:43:19,760
Speaker 4: money to work behind Elon Musk SpaceX, and the rounds

809
00:43:19,800 --> 00:43:22,280
Speaker 4: get larger and the valuation just sols.

810
00:43:22,760 --> 00:43:24,920
Speaker 2: But NASA itself is trying to do more with less.

811
00:43:25,960 --> 00:43:28,440
Speaker 3: It's well, I mean, and SpaceX has been at the

812
00:43:28,440 --> 00:43:30,719
Speaker 3: core of that story, and it's something that's started in

813
00:43:30,760 --> 00:43:35,640
Speaker 3: the Obama administration. You know, again, the economics of space

814
00:43:35,719 --> 00:43:40,320
Speaker 3: have changed. SpaceX has never disclosed the per seat cost,

815
00:43:40,840 --> 00:43:43,120
Speaker 3: but you can do the math based on the disclosures

816
00:43:43,120 --> 00:43:47,480
Speaker 3: that we do have, and it's several million dollars per person.

817
00:43:48,160 --> 00:43:51,080
Speaker 3: Compare and contrast with what else has been out there

818
00:43:51,120 --> 00:43:55,120
Speaker 3: from United Launch Alliance. And let me just catch this

819
00:43:55,200 --> 00:43:55,919
Speaker 3: key moment here.

820
00:43:56,120 --> 00:43:56,600
Speaker 6: Look at that.

821
00:44:00,000 --> 00:44:03,000
Speaker 19: Do you see Dragon coast into its orbit.

822
00:44:06,600 --> 00:44:07,480
Speaker 8: And a wonderful view.

823
00:44:07,480 --> 00:44:11,160
Speaker 18: There is Dragon Endeavor with crew eleven on board.

824
00:44:12,040 --> 00:44:15,279
Speaker 6: Safe inspiration confirmed and safe.

825
00:44:14,920 --> 00:44:20,680
Speaker 17: In Dragon Cheap engineer on dragging the ground. Containa, Mike

826
00:44:21,160 --> 00:44:24,920
Speaker 17: kem here Hole, welcome to orbit on behalf of the

827
00:44:25,040 --> 00:44:27,600
Speaker 17: entire Falcon team. We thank you for flying with Falcon

828
00:44:27,600 --> 00:44:30,640
Speaker 17: today and wish you a great mission. Dragon will take

829
00:44:30,680 --> 00:44:33,840
Speaker 17: you from here over to'll launch director for a few words.

830
00:44:34,800 --> 00:44:37,560
Speaker 3: On behalf so Caro, what that was was dragging the

831
00:44:37,600 --> 00:44:39,279
Speaker 3: capsule and the left hand side of the screen you

832
00:44:39,280 --> 00:44:43,239
Speaker 3: see the crew inside there, separating from the second stage,

833
00:44:43,400 --> 00:44:45,520
Speaker 3: and now they're in orbit, right, And I'm just going

834
00:44:45,600 --> 00:44:47,880
Speaker 3: to give you a quick statistic which is very interesting.

835
00:44:48,760 --> 00:44:52,760
Speaker 3: We were scrubbed on Thursday, twenty three hours later.

836
00:44:52,840 --> 00:44:53,799
Speaker 6: We did launch on.

837
00:44:53,840 --> 00:44:59,880
Speaker 3: Friday, but because of where ISS was lined up in

838
00:45:00,160 --> 00:45:04,640
Speaker 3: with Planet Earth. For a layman's explanation, actually what's going

839
00:45:04,680 --> 00:45:07,560
Speaker 3: to happen is that all being well and equal, Crew

840
00:45:07,600 --> 00:45:10,719
Speaker 3: eleven and Dragon will arrive at the ISS at exactly

841
00:45:10,760 --> 00:45:13,520
Speaker 3: the same time on Saturday morning, about three am, eas

842
00:45:13,600 --> 00:45:15,840
Speaker 3: in time as they would have done if they had

843
00:45:15,920 --> 00:45:20,279
Speaker 3: launched yesterday. And that kind of speaks to speaks to

844
00:45:20,360 --> 00:45:24,160
Speaker 3: rocket science, doesn't it.

845
00:45:23,320 --> 00:45:28,720
Speaker 4: This view of space and analysis of curvature of Earth

846
00:45:28,760 --> 00:45:31,960
Speaker 4: and speed at which we rotate in rbit, it sometimes

847
00:45:31,960 --> 00:45:35,799
Speaker 4: works beautifully in a lignes as this entire viewership has

848
00:45:35,920 --> 00:45:39,680
Speaker 4: been seeing throughout the show of what's happening currently live

849
00:45:40,040 --> 00:45:42,520
Speaker 4: with Falcon nine and how we start to see the

850
00:45:42,520 --> 00:45:44,880
Speaker 4: astronauts now relieve, Now just go back to the economics

851
00:45:44,920 --> 00:45:46,680
Speaker 4: a little bit, because what we're expecting now is they

852
00:45:46,680 --> 00:45:49,160
Speaker 4: are going to reach iss they're going to be relieving

853
00:45:49,480 --> 00:45:50,080
Speaker 4: Crew ten.

854
00:45:50,640 --> 00:45:53,520
Speaker 2: But in the future, what we see fewer astronauts on.

855
00:45:53,440 --> 00:45:58,320
Speaker 3: Board maybe I mean again, the movement here is for

856
00:45:58,400 --> 00:46:01,440
Speaker 3: the private sector to build spaces and so you know

857
00:46:01,880 --> 00:46:04,279
Speaker 3: the cadence of that happening. Who knows this crew will

858
00:46:04,320 --> 00:46:07,480
Speaker 3: be there for six months. NASA's thinking about maybe eight months,

859
00:46:08,280 --> 00:46:10,759
Speaker 3: you know, relieve Crew ten, they were there since March.

860
00:46:10,880 --> 00:46:15,920
Speaker 3: These come home, but this missions to success so far.

861
00:46:16,280 --> 00:46:19,719
Speaker 4: We continue to see how the astronauts celebrate on board.

862
00:46:19,840 --> 00:46:24,840
Speaker 4: As you mentioned, Japan, the US and Russia represented. That

863
00:46:25,000 --> 00:46:28,879
Speaker 4: does it for this very global and very intergalactic edition

864
00:46:28,920 --> 00:46:29,719
Speaker 4: of Bloomberg Tech.

865
00:46:30,600 --> 00:46:32,840
Speaker 3: Out of this World. Check out the podcast. You know

866
00:46:32,880 --> 00:46:34,840
Speaker 3: where to find it. We publish it everywhere. Lots of

867
00:46:34,840 --> 00:46:36,640
Speaker 3: you listen to it. It's been a great week. This

868
00:46:36,719 --> 00:46:37,440
Speaker 3: is Bloomberg Tech.