WEBVTT - Third Quarter Earnings, Tech Week Wrap-up 0:00:01.480 --> 0:00:06.760 From Bahard where Innovation, Money and power Collie in Silicon Valley, NBN. 0:00:07.120 --> 0:00:20.560 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:25.440 --> 0:00:28.000 I'm Caroline Heide at Bloomberg's World headquarters in New York, 0:00:28.440 --> 0:00:28.639 and I. 0:00:28.680 --> 0:00:32.320 Med Lovelow in San Francisco. This is Bloomberg Technology. 0:00:31.920 --> 0:00:34.080 Coming up from Teszla to Netflix. We're going to wrap 0:00:34.159 --> 0:00:36.200 up the week of tech earnings and of course push 0:00:36.240 --> 0:00:39.360 ahead to the big names reporting ahead much more to come. 0:00:40.080 --> 0:00:42.560 Plus, we'll sit down with the head of KKR's Tech 0:00:42.760 --> 0:00:45.879 Growth Fund to discuss where his firms these opportunities in 0:00:45.920 --> 0:00:49.760 technology after they just raised three billion dollars. 0:00:49.920 --> 0:00:51.479 And we're going to wrap up our coverage from New 0:00:51.560 --> 0:00:54.760 York Tech Week and hear from two venture capitalists where 0:00:54.800 --> 0:00:58.560 they're choosing to invest. Let's dig into what President Biden 0:00:58.680 --> 0:01:01.680 himself was saying last and a direct appeal to the 0:01:01.680 --> 0:01:05.080 American people just work funding for Israel and indeed Ukraine's 0:01:05.080 --> 0:01:05.640 war efforts. 0:01:05.680 --> 0:01:09.480 Take a listen, am awesome food and represent different threats, 0:01:10.000 --> 0:01:12.800 but they share this in common. They both want to 0:01:12.840 --> 0:01:16.800 completely annihilate in neighboring democracy, completely annihilated tonight. 0:01:16.800 --> 0:01:17.600 They're innocent people. 0:01:17.640 --> 0:01:21.480 All over the world, who hope because of us, who 0:01:21.600 --> 0:01:24.280 believe in a better life because of us, who are 0:01:24.480 --> 0:01:26.880 desperate not to be forgotten by. 0:01:26.800 --> 0:01:29.040 Us, and are waiting for us. 0:01:30.400 --> 0:01:31.240 But time is over. 0:01:31.280 --> 0:01:34.600 The essence, we want to discuss this further with Nick 0:01:34.600 --> 0:01:38.600 Waddams and over in Washington. Nick, it is a moment where, 0:01:38.600 --> 0:01:41.319 of course President Biden is appealing for more funds to 0:01:41.400 --> 0:01:43.120 be allocated at a time where. 0:01:43.040 --> 0:01:44.360 There is no Speaker of the House. 0:01:44.560 --> 0:01:46.520 But bring us up to speed with really the concerns 0:01:46.520 --> 0:01:49.600 we have about an escalating conflict across the Middle East. 0:01:50.920 --> 0:01:54.480 Right So that's the big question on everybody's mind right now. 0:01:54.560 --> 0:01:57.960 We're expecting that Israel could launch a ground invasion into 0:01:58.000 --> 0:02:01.920 the Gaza Strip really at any time time, and the 0:02:02.080 --> 0:02:04.400 US is saying they want to show their. 0:02:04.280 --> 0:02:06.080 Full support for Israel. 0:02:05.760 --> 0:02:09.680 While also wanting to avert a humanitarian crisis or a 0:02:09.720 --> 0:02:13.920 further humanitarian crisis that could further exacerbate tensions in the 0:02:13.960 --> 0:02:18.239 Arab world and potentially draw in Hesblah fighters and maybe 0:02:18.240 --> 0:02:18.920 even Iran. 0:02:19.120 --> 0:02:22.600 So you saw the President ask for another. 0:02:22.560 --> 0:02:25.640 About well more than one hundred billion dollars in funding 0:02:26.600 --> 0:02:30.000 last night. That money would go primarily to Ukraine, but 0:02:30.080 --> 0:02:33.720 there would be about fourteen billion dollars for Israel to 0:02:33.760 --> 0:02:36.919 supply it with munitions and other weaponry. 0:02:36.760 --> 0:02:38.840 Aim mostly at missile defense. 0:02:38.880 --> 0:02:43.080 So the concern there is that Israel, Israel's iron done 0:02:43.080 --> 0:02:46.240 system would be overwhelmed in the event that Hezbollah really 0:02:46.280 --> 0:02:50.560 launches a full scale missile attack. So a complicated and 0:02:50.680 --> 0:02:53.520 tricky tightrope for the president to walk to both pledge 0:02:53.520 --> 0:02:57.160 his support for Israel but hope to avoid that urgeoning 0:02:57.240 --> 0:02:58.399 humanitarian crisis. 0:02:59.200 --> 0:03:03.160 Nick lead our national security coverage here at Bloomberg and 0:03:03.200 --> 0:03:04.840 this show is Bloomberg Technology. 0:03:04.880 --> 0:03:05.720 He talks about. 0:03:05.480 --> 0:03:10.160 Iron Dome in real time broadly across the Middle East region. 0:03:10.240 --> 0:03:14.720 Now there is literally conflict. The United States has bases 0:03:14.720 --> 0:03:19.200 in several countries where they are dealing with missile attacks 0:03:19.440 --> 0:03:22.960 and thinking about the response. They are engaged in sort 0:03:23.000 --> 0:03:26.320 of active military operation. Could you just explain to our 0:03:26.360 --> 0:03:29.880 audience what is happening across the region on Friday as 0:03:29.880 --> 0:03:31.880 we speak, but also heading into the weekend. 0:03:33.280 --> 0:03:37.400 Well, you know, the primary issue obviously is that impending 0:03:37.800 --> 0:03:40.880 Israeli ground invasion, but you did have this situation yesterday 0:03:40.920 --> 0:03:45.800 where the US reported three incidents where drones they noticed 0:03:45.800 --> 0:03:49.400 what They called it an uptick in hostile drone activity, 0:03:49.560 --> 0:03:54.000 so drone attacks on US forces stationed in Iraq and 0:03:54.120 --> 0:03:58.160 also in Syria. There were minor injuries reported. But while 0:03:58.160 --> 0:04:00.360 the Pentagon was trying to say, you know, these are 0:04:00.400 --> 0:04:04.960 isolated incidents, what you see there is just a more 0:04:05.040 --> 0:04:07.880 hostility toward US forces in the region, and the concern 0:04:07.960 --> 0:04:10.760 there would be that the US itself would be pulled 0:04:10.760 --> 0:04:14.480 into this war. The administration has been flowing military assets 0:04:14.520 --> 0:04:18.600 to the region. They knocked down three cruise missiles from 0:04:18.640 --> 0:04:21.599 Houthy rebels in Yemen. But you are seeing this greater 0:04:21.760 --> 0:04:24.640 US involvement, and that has raised concerns that the US 0:04:24.720 --> 0:04:27.599 could possibly be pulled into this. The administration is saying, no, 0:04:27.680 --> 0:04:30.560 we would not put boots on the ground, but they 0:04:30.600 --> 0:04:34.599 have been sending more fighter jets, obviously aircraft carriers. So 0:04:34.680 --> 0:04:36.800 there really is that the concern that is the US 0:04:36.800 --> 0:04:39.839 looks to deter Iran and other actors. 0:04:39.440 --> 0:04:42.760 That itself itself could be drawn into the conflict. 0:04:43.960 --> 0:04:47.840 Be nice, Nate Wadhams, who leads our national security coverage 0:04:47.880 --> 0:04:50.480 out of DC, Thank you very much. I want to 0:04:50.480 --> 0:04:52.839 stay in the world of gey politics. Karen, talk about 0:04:52.880 --> 0:04:56.240 those new US rules which have aimed at restricting cutting 0:04:56.279 --> 0:04:59.800 edge technology going to China, and they've really hit She 0:05:00.120 --> 0:05:02.279 is one name this week which is in Nvidia. You 0:05:02.360 --> 0:05:05.760 see it there on a five day basis down nine percent, 0:05:06.160 --> 0:05:08.600 the worst two day decline in the last two sessions 0:05:08.600 --> 0:05:09.440 in more than a year. 0:05:09.480 --> 0:05:10.680 The US curbs. 0:05:10.560 --> 0:05:14.000 Threaten a fifth of Nvidia's revenue, which comes from China, 0:05:14.040 --> 0:05:17.560 particularly in the data center context Like this is a 0:05:17.600 --> 0:05:20.160 stock trading at its lowest level in a round a month, 0:05:20.240 --> 0:05:24.520 on track for its worst weekly decline since the weekending 0:05:24.520 --> 0:05:27.839 September second, it's a timing issue, right, because it's also 0:05:27.839 --> 0:05:29.679 stock goes up more than one hundred and eighty percent 0:05:29.760 --> 0:05:30.279 year to date. 0:05:30.520 --> 0:05:32.160 Yeah, and been the name in. 0:05:32.120 --> 0:05:34.800 AI And that's the context, right, how far this stock 0:05:34.880 --> 0:05:38.480 has run and times before we've seen pullbacks, worries about 0:05:38.640 --> 0:05:40.839 the fact that the euphori are around this name Particulian 0:05:40.920 --> 0:05:44.159 relationship to artificial intelligence has just gone too far too fast? 0:05:44.279 --> 0:05:47.600 Is it really a one trillion dollar opportunity here in 0:05:47.680 --> 0:05:49.400 terms of its own market capitalization? 0:05:49.960 --> 0:05:51.200 Each time we've seen. 0:05:51.000 --> 0:05:53.919 The pullbacks end up with a rally further and you 0:05:54.000 --> 0:05:56.040 have ended up being burned if you sold off and 0:05:56.160 --> 0:05:58.080 gonnas nose. We can ask Kathy Wood about that one 0:05:58.120 --> 0:06:00.280 when she has dan played this name since the start 0:06:00.320 --> 0:06:02.240 of the year. But it does feel like this has 0:06:02.279 --> 0:06:04.039 been a turning point in the last five days. Ed, 0:06:04.080 --> 0:06:06.080 what's so interesting? As you pointed out time and time. 0:06:05.920 --> 0:06:08.800 Again, this was not new news to a large extent. 0:06:08.880 --> 0:06:12.760 In fact, our own in had been reporting well month 0:06:12.839 --> 0:06:15.520 or so ago that it is likely that these particular 0:06:15.560 --> 0:06:19.000 chips designed for China would end up being swamped by 0:06:19.000 --> 0:06:21.000 what is a geopolitical context. 0:06:21.440 --> 0:06:24.520 This week's trading has been a surprise because in June 0:06:24.800 --> 0:06:28.039 Ian did report that the US would expand curbs to 0:06:28.080 --> 0:06:30.520 include a eight hundred and h eight hundred the China 0:06:30.600 --> 0:06:35.240 to chips specifically, and it happened, and video is supply constrained, right, 0:06:35.279 --> 0:06:38.320 they can just ship the GPUs elsewhere for the market's concerned, 0:06:38.360 --> 0:06:38.680 all right? 0:06:38.680 --> 0:06:39.120 Coming up. 0:06:39.120 --> 0:06:41.560 Shares of Tesla could be facing one of its worst 0:06:41.640 --> 0:06:43.560 weeks after posting disappointed their. 0:06:43.520 --> 0:06:44.240 Kind of results. 0:06:44.480 --> 0:06:47.320 More in that next carry that stock down fifteen percent 0:06:47.360 --> 0:06:47.880 on the week. 0:06:48.240 --> 0:07:12.840 This has been bow Technology. 0:07:04.040 --> 0:07:04.320 Okay. 0:07:04.360 --> 0:07:07.240 Shares of Tesla falling again today after missing three q 0:07:07.400 --> 0:07:10.840 sales and profit estimates. While CEO E got mass dialed 0:07:10.880 --> 0:07:15.360 back on growth expectations, the stockdown as much as fifteen percent, 0:07:15.440 --> 0:07:17.960 more than fifteen percent so far this week, and as 0:07:17.960 --> 0:07:21.000 we've said on this program already today, that puts Test 0:07:21.080 --> 0:07:24.600 on track for its worst week of the year on 0:07:24.640 --> 0:07:28.760 a weekly performance basis. Let's bring Boomberg Sean Okaine out 0:07:28.760 --> 0:07:32.120 of Texas, who was all over these earnings, and let's 0:07:32.120 --> 0:07:37.800 just start with the basics. Margins, worse than expected, missed 0:07:37.840 --> 0:07:39.320 on EPs, missed on sales. 0:07:39.520 --> 0:07:43.440 Give us the numbers. Well, I mean, we see. 0:07:44.520 --> 0:07:47.560 An adjusted automotive gross margin when I'm removing all the 0:07:47.560 --> 0:07:51.040 regulatory credits of sixteen point three percent, and that is 0:07:51.040 --> 0:07:52.920 a figure that everybody's going to focus on all year 0:07:52.920 --> 0:07:55.480 ever since these cuts begin. You know how much of 0:07:55.520 --> 0:07:58.280 that profit was Tesla going to eat into to keep 0:07:58.320 --> 0:08:00.320 demand where they wanted it to be. 0:08:00.720 --> 0:08:01.880 Now, we knew that they. 0:08:01.880 --> 0:08:05.040 Shut down the factories for some upgrades this quarter, We 0:08:05.120 --> 0:08:06.760 knew that there was going to be some pullback in 0:08:06.800 --> 0:08:08.760 some of those numbers, but you know, it all lined 0:08:08.840 --> 0:08:11.720 up a little bit worse than we were expecting. And honestly, 0:08:11.760 --> 0:08:13.240 for me, the thing that I keep coming back to 0:08:13.320 --> 0:08:15.840 is their operating margin is now down to just over 0:08:15.960 --> 0:08:19.240 seven percent, and in January of this year, Zach Kirkhorn, 0:08:19.280 --> 0:08:22.000 who was at the time still CFO, said that that's 0:08:22.040 --> 0:08:24.480 actually the number they focus on the most internally as 0:08:24.520 --> 0:08:26.760 a management team, and they wanted to push in front 0:08:26.760 --> 0:08:28.360 of the street and say, hey, you should focus on 0:08:28.360 --> 0:08:30.640 this too. Less about the gross margins, which are going 0:08:30.680 --> 0:08:33.400 to be a little bit volatile, and that operating margin 0:08:33.440 --> 0:08:35.080 is now lower than it has been in the last 0:08:35.120 --> 0:08:37.760 two years and way off it's high of about twenty 0:08:37.840 --> 0:08:41.680 nine percent, So we definitely some harsh numbers. The real 0:08:41.760 --> 0:08:43.720 question now is like, sort of how much can they 0:08:43.720 --> 0:08:46.400 pick that up in the following quarter where they need 0:08:46.440 --> 0:08:48.800 to push about four hundred and seventy five thousand cars 0:08:48.840 --> 0:08:50.640 out to hit their one point eight million target for 0:08:50.679 --> 0:08:53.360 the year, And that's definitely something they can do. It's 0:08:53.360 --> 0:08:56.600 not an enormous jump or compared to the last couple quarters, 0:08:56.600 --> 0:08:57.839 but we'll see where it goes. 0:08:58.280 --> 0:09:00.440 It's interesting that Adam jonas Cole is one of the 0:09:00.480 --> 0:09:03.080 most bullish analysts out there in terms of price target. 0:09:03.600 --> 0:09:05.480 He's been saying, look, this is the read a cross 0:09:05.480 --> 0:09:07.680 for the rest of the ev market, and boy, if 0:09:07.760 --> 0:09:11.040 Tesla's hurting, then looking everyone else. He does think this 0:09:11.120 --> 0:09:12.160 is just short term pain. 0:09:12.360 --> 0:09:15.200 Longer term, the focus is still there. They will be 0:09:15.280 --> 0:09:17.560 able to boost the overall volumes. 0:09:17.600 --> 0:09:19.959 But are people thinking this is more of a car 0:09:20.000 --> 0:09:21.400 company than a tech company at the moment? 0:09:21.440 --> 0:09:21.640 Sure? 0:09:22.200 --> 0:09:24.800 I mean, I think it's evaluation still shows that people 0:09:24.840 --> 0:09:27.520 are expecting a little bit more, you know, car company plus, I. 0:09:27.520 --> 0:09:28.840 Guess is a way you could look at it. 0:09:30.040 --> 0:09:32.640 And one of the big questions I think moving forward 0:09:32.679 --> 0:09:35.480 in this quarter in twenty twenty four is we heard 0:09:35.480 --> 0:09:37.960 a lot of talk the other night about cost cutting. 0:09:38.280 --> 0:09:40.280 It really sounds like Tesla is doing a little bit 0:09:40.360 --> 0:09:42.360 less sort of boasting about cost cutting as they have 0:09:42.520 --> 0:09:44.880 in the past and coming up with innovative ways to 0:09:44.920 --> 0:09:47.400 lower the costs on their side. Now it sounds like 0:09:47.440 --> 0:09:50.640 they're really kind of like racing the price cuts on 0:09:50.679 --> 0:09:53.360 the consumer side with these cost cuts internally. So can 0:09:53.400 --> 0:09:56.320 they cut more cost out of the car as fast 0:09:56.440 --> 0:09:58.839 or at least, you know, nearly as fast as they're 0:09:58.880 --> 0:10:01.480 cutting the price on the front men? And you know, 0:10:01.559 --> 0:10:03.439 I think it seems like they're probably getting to a 0:10:03.480 --> 0:10:07.040 point where there's no return. They've cut so much cost 0:10:07.040 --> 0:10:09.880 out of these cars until this next generation platform comes 0:10:09.880 --> 0:10:11.720 out that has to be a lot cheaper to produce. 0:10:12.080 --> 0:10:15.160 So I think we're really ending or coming coming to 0:10:15.200 --> 0:10:18.320 a head there with this generation of cars built on 0:10:18.360 --> 0:10:20.439 this platform that's been around for many years. 0:10:20.600 --> 0:10:22.120 Seana Kain, great breakdown. 0:10:22.200 --> 0:10:24.760 We thank you, and indeed looking at the tumult when 0:10:24.800 --> 0:10:26.080 it comes to share prices of Tesla. 0:10:26.160 --> 0:10:28.320 Let's look at another Eno Musk venture for a moment. 0:10:28.679 --> 0:10:32.480 X social media platform known as Twitter previously is launching 0:10:32.480 --> 0:10:36.400 two subscription plans, with the most expensive tier eliminating ads entirely. 0:10:36.520 --> 0:10:36.679 Now. 0:10:36.679 --> 0:10:38.920 This comes as the platform begins it's testing of a 0:10:39.040 --> 0:10:41.920 one dollar per year subscription fee for new accounts in 0:10:41.960 --> 0:10:44.800 an effort to cut out spam and those body accounts 0:10:44.840 --> 0:10:47.040 that Elon Musk was always so frustrated about ed. 0:10:48.200 --> 0:10:50.040 So many options. 0:10:50.400 --> 0:10:53.280 Let's get some other earnings out there. This week, Netflix, 0:10:53.320 --> 0:10:57.600 the streaming service posting, is best quarter to subscriber growth 0:10:57.640 --> 0:11:00.560 in years. When it reported earnings the other night, the 0:11:00.600 --> 0:11:03.840 company credited the strong programming slate, but also it's crackdown 0:11:04.200 --> 0:11:08.559 on password sharing joining us now. Alicia Reese of Webbush, 0:11:09.240 --> 0:11:11.520 this was one of those things where we talk about 0:11:11.520 --> 0:11:16.440 all the other stuff, right, advertising content, strategy, and then 0:11:16.480 --> 0:11:18.800 the subscribing numbers hit and we go back to the 0:11:18.840 --> 0:11:20.640 only thing we care about subscribing numbers. 0:11:21.080 --> 0:11:22.280 What was the main takeaway for you? 0:11:22.600 --> 0:11:26.080 Yeah, the subscriber number is really benefited strongly from the 0:11:26.080 --> 0:11:30.040 password sharing crackdown. You have the families who chose to 0:11:30.120 --> 0:11:33.280 add their extra members. That's eight dollars a month in 0:11:33.320 --> 0:11:38.280 the US and similar elsewhere, you know, and that's in 0:11:38.400 --> 0:11:43.240 grandma kids going away to college, Auntie's boyfriend's girlfriends, everyone 0:11:43.240 --> 0:11:45.600 who they want to add onto that account and didn't 0:11:45.600 --> 0:11:46.199 want to kick off. 0:11:46.280 --> 0:11:48.920 That's a nice boost for our poo. 0:11:49.880 --> 0:11:52.000 And then all those people who got kicked off are 0:11:52.120 --> 0:11:55.440 joining for their own accounts and often on the ad 0:11:55.480 --> 0:11:58.439 tire but you know, and that's pulling our pood down 0:11:58.440 --> 0:11:58.880 a little bit. 0:11:58.920 --> 0:12:02.160 But that's really boosted subscriber numbers. 0:12:02.360 --> 0:12:04.720 And I think the most important part of the ad 0:12:04.800 --> 0:12:08.480 tier by itself is that it's reducing churn. It's giving 0:12:08.480 --> 0:12:11.800 people who would otherwise churn out for a period of 0:12:11.800 --> 0:12:14.200 time because there's no content that they really want to 0:12:14.200 --> 0:12:18.360 see and pay for, they can just lower their monthly 0:12:18.400 --> 0:12:19.760 fees and go on the ad. 0:12:19.600 --> 0:12:22.480 Tier for a period of time or end up staying there. 0:12:22.800 --> 0:12:25.319 Meanwhile, like we're just talking with Tesla and they're trying 0:12:25.360 --> 0:12:28.400 to calibrate the costs of the business and the fact 0:12:28.440 --> 0:12:31.000 that they have pulled back on content and they're releasing 0:12:31.280 --> 0:12:33.640 things more specifically, Is that the right tactic to be 0:12:33.679 --> 0:12:34.360 going for at the moment? 0:12:34.400 --> 0:12:37.200 Alicia, Yeah, I think so. Well, there are two things 0:12:37.240 --> 0:12:39.520 that are really benefiting Netflix right now. 0:12:39.559 --> 0:12:43.600 Before the Hollywood labor strikes, they had already reduced content costs, 0:12:43.640 --> 0:12:47.000 all of the streamers had. They're just reducing volume, and 0:12:47.080 --> 0:12:51.280 Netflix was guilty of, you know, basically buying everything they 0:12:51.320 --> 0:12:54.440 possibly could and just seeing what's stuck on the wall. 0:12:54.880 --> 0:12:58.080 So now they're a lot more focused. 0:12:57.600 --> 0:13:01.600 On quality of content instead of volume of content, because 0:13:01.600 --> 0:13:05.000 the volume really just it makes the user it just 0:13:05.080 --> 0:13:07.000 takes too long to find something that they really want 0:13:07.000 --> 0:13:07.280 to see. 0:13:07.320 --> 0:13:10.840 And having those quality shows there, that's what really is. 0:13:11.040 --> 0:13:12.000 It's good for retention. 0:13:12.520 --> 0:13:15.439 So they're focused on quality, and they're also focused far 0:13:15.520 --> 0:13:18.880 more on efficiency of content, using that global content that 0:13:18.960 --> 0:13:20.120 can cross regions. 0:13:20.440 --> 0:13:22.400 Squid Game was the first major. 0:13:22.120 --> 0:13:25.120 One that they saw the how well that worked, and 0:13:25.200 --> 0:13:29.120 now with the strikes, they're looking at more licensed content 0:13:29.280 --> 0:13:31.800 that they haven't They haven't used this strategy in a while. 0:13:31.840 --> 0:13:35.800 They've been doing exclusive content and original content and now 0:13:35.960 --> 0:13:38.640 recently they licensed suits and. 0:13:38.640 --> 0:13:40.679 This is an old show and it just you know, 0:13:40.920 --> 0:13:42.400 it did really well. 0:13:42.760 --> 0:13:46.199 And they're working with Warner Brothers Discovery on licensing content 0:13:46.240 --> 0:13:48.800 that was that is on Max and this is no 0:13:48.840 --> 0:13:51.760 longer exclusive, but it's doing well on their program. Warner 0:13:51.760 --> 0:13:55.200 Brothers needs the money. Netflix has the viewership. It benefits everyone. 0:13:55.240 --> 0:13:57.160 It's a win win situation and I think that's really 0:13:57.240 --> 0:14:00.559 going to help Netflix to continually expand and it's pretty 0:14:00.559 --> 0:14:01.040 cash flow. 0:14:01.280 --> 0:14:01.600 Yeah. 0:14:01.720 --> 0:14:04.520 Well, Netflix remains on your best ideas list as they 0:14:04.559 --> 0:14:06.160 seem to be pushing into the future as you'd like 0:14:06.200 --> 0:14:08.760 to see. Alicia Reise of Webbush, great to have you 0:14:08.800 --> 0:14:09.240 on the show. 0:14:09.240 --> 0:14:14.800 We really appreciate it. 0:14:18.000 --> 0:14:20.320 Let's speak about crypto for a moment, and some of 0:14:20.400 --> 0:14:23.480 the optimism around bitcoin once again being shown. Is it 0:14:23.520 --> 0:14:25.360 managed to just crack through that thirty. 0:14:25.080 --> 0:14:26.600 Thousand dollars level once more. 0:14:26.800 --> 0:14:29.640 This again is about the hopes that it might be 0:14:29.680 --> 0:14:32.160 able to see a spot bitcoin ETF come to the market, 0:14:32.200 --> 0:14:34.600 if not one too, but the plethora that have currently 0:14:34.600 --> 0:14:36.920 been put forward now we understand at the moment that 0:14:36.960 --> 0:14:40.120 we are seeing this broader rally. We're looking towards GPDC 0:14:40.320 --> 0:14:43.720 in particular Grayscales own trust. Remember, they could be a 0:14:43.840 --> 0:14:48.160 DC court walling on that ETF application as soon as today. 0:14:48.280 --> 0:14:50.640 The SEC of course, had asked a federal jodge to 0:14:50.800 --> 0:14:54.080 dismiss its case also against some Ripple executives at the moment, 0:14:54.120 --> 0:14:56.440 and there seems to be this moon music shift that 0:14:56.520 --> 0:14:59.520 we will see Grayscale prevail in the end versus the SEC. 0:15:00.080 --> 0:15:03.040 See backing down versus Ripple, and ultimately there's all kind 0:15:03.040 --> 0:15:06.120 of hinting that we will see ETS being adopted at 0:15:06.120 --> 0:15:07.760 sometime soon, at least before January. 0:15:08.040 --> 0:15:12.280 Let's have some more bitcoin chat, Caroline, because our next 0:15:12.320 --> 0:15:16.040 guest is so confident about the growth of crypto. He's 0:15:16.080 --> 0:15:19.400 predicting that bitcoin will not only breach it's sixty nine 0:15:19.440 --> 0:15:22.400 thousand dollars high at some point next year, but go 0:15:22.440 --> 0:15:26.440 to or beyond one hundred thousand dollars per token. Here 0:15:26.480 --> 0:15:29.640 in the studio, Sonny saying, co founder and CEO of 0:15:29.680 --> 0:15:32.840 a new company, Beluga, which has just raised four million dollars, 0:15:33.200 --> 0:15:34.120 which we will get to. 0:15:34.920 --> 0:15:38.920 Why so confident? What are you basing this call on? Yeah? 0:15:39.040 --> 0:15:41.240 No great to have. You know, we have you on again. 0:15:42.440 --> 0:15:45.840 Bitcoin's become very resilient, right and you're everything seeing it 0:15:45.880 --> 0:15:46.520 today go up. 0:15:46.560 --> 0:15:47.880 Well, the markets are going down. 0:15:48.360 --> 0:15:50.560 And next year we have what we're I would say 0:15:50.600 --> 0:15:52.960 is a perfect storm happening. You have three things happening. 0:15:53.400 --> 0:15:56.119 The bitcoin ETF, which we're all talking about. The SEC's 0:15:56.600 --> 0:15:58.520 is going to have to went on this one. They'll 0:15:58.600 --> 0:16:01.240 delay as much as passed well by. 0:16:00.680 --> 0:16:01.520 Q one Q two. 0:16:01.640 --> 0:16:03.360 Next year you'll have an ETF live. 0:16:04.120 --> 0:16:06.920 Then you're gonna have interest rates hopefully coming down next 0:16:07.000 --> 0:16:08.920 year too. And then third, which I think is the 0:16:08.920 --> 0:16:11.680 most important one to hear, the bitcoin having happening in April, 0:16:11.960 --> 0:16:14.840 and normally after that four to six months after you 0:16:14.880 --> 0:16:17.280 see the bitcoin price really run. So the last all 0:16:17.320 --> 0:16:19.560 time high was sixty nine thousand dollars, which happened after 0:16:19.600 --> 0:16:22.200 the bitcoin having four years ago. I think we take 0:16:22.240 --> 0:16:24.760 that out and actually reach one hundred thousand. 0:16:24.400 --> 0:16:25.440 Next year and of next year. 0:16:25.760 --> 0:16:28.480 Larry Fink, who is the CEO of black Rock you 0:16:28.560 --> 0:16:34.120 probably know, outlined this idea based specifically on the events 0:16:34.120 --> 0:16:36.760 of the last week, that bitcoin is behaving as a 0:16:36.760 --> 0:16:39.800 haven asset, based on everything that's happening in the world 0:16:39.840 --> 0:16:41.760 right now, you believe. 0:16:41.480 --> 0:16:44.720 That that's yes and no. So that's happened. 0:16:44.760 --> 0:16:46.760 It's working out this way for the last couple of weeks. 0:16:46.800 --> 0:16:49.000 But again like a year ago and during the pandemic, 0:16:49.160 --> 0:16:50.320 it didn't work out that way. 0:16:50.520 --> 0:16:52.840 It treated just like a risk stock, and so. 0:16:53.080 --> 0:16:56.400 That narrative has proven true sometimes and not the other times. 0:16:56.640 --> 0:16:57.760 I think the other three events that. 0:16:57.720 --> 0:17:00.160 I laid out for next year are more importantly as 0:17:00.240 --> 0:17:01.880 what's going to drive the price up next year. 0:17:02.920 --> 0:17:05.919 I mean still, I think the entire market looks at 0:17:06.000 --> 0:17:07.320 Larry Fink Hope and Mouth, but. 0:17:07.320 --> 0:17:09.120 They about shift he seems. 0:17:08.800 --> 0:17:11.199 To have had around bitcoin, and ultimately it seems to 0:17:11.200 --> 0:17:14.680 be he's saying customer driven. I'm interested in what you're 0:17:14.720 --> 0:17:18.280 doing about customer driven to your new enterprise, Beluga. You've 0:17:18.280 --> 0:17:20.760 been raising funds I think four million seat capital coming 0:17:20.760 --> 0:17:23.760 in because ultimately we talk about institutional adoption, we talk 0:17:23.800 --> 0:17:27.640 about retail though having pulled back, how are people using 0:17:27.800 --> 0:17:29.359 crypto other than a risk us it. 0:17:30.359 --> 0:17:31.439 Yeah, that's the main thing. 0:17:31.440 --> 0:17:33.159 So we raise a four million dollar round, which we 0:17:33.280 --> 0:17:35.800 raised in March during the doldrums of the crypto winter, 0:17:36.160 --> 0:17:39.119 but we really start a Bologa to help people not 0:17:39.160 --> 0:17:42.040 only onboard the crypto, but do more with their crypto. 0:17:42.480 --> 0:17:44.960 And you know, it's estimated that there's four hundred million 0:17:44.960 --> 0:17:47.280 people around the world that own crypto, which is amazing, 0:17:47.680 --> 0:17:49.640 but only like ten to twenty million them. 0:17:49.560 --> 0:17:51.120 Are actually doing it with their crypto. 0:17:51.640 --> 0:17:54.040 We want to help people not just buy and hold anymore, 0:17:54.240 --> 0:17:58.400 but actually stake when play, earn, pay and use crypto. 0:17:58.640 --> 0:18:01.239 There's all these new crypto launching every day, whether it 0:18:01.280 --> 0:18:04.960 be web three games, crypto, credit cards and use staking products, lending. 0:18:04.720 --> 0:18:06.679 Products, and no one knows how to use them. 0:18:06.760 --> 0:18:09.280 They're not feeling confident to want to try to understand 0:18:09.280 --> 0:18:11.520 these PROCs at all. And that's where the job Belugas 0:18:11.560 --> 0:18:14.359 helped get these people that already own crypto to start 0:18:14.400 --> 0:18:15.560 doing more with their crypto. 0:18:16.200 --> 0:18:20.000 Okay, why you doing that and not sort of legacy 0:18:20.040 --> 0:18:22.480 traditional finance. 0:18:22.560 --> 0:18:24.400 And also the name Beluga yes. 0:18:24.720 --> 0:18:27.680 Great, so first to name Beluga. Everyone in crypto wants 0:18:27.680 --> 0:18:30.240 to be a whale. Belugas are some of the smartest 0:18:30.240 --> 0:18:32.000 whales out there, so we want you to help. 0:18:31.840 --> 0:18:33.360 Become a smart crypto whale. 0:18:34.400 --> 0:18:36.520 Why I'm doing this, I've been at bit pay for 0:18:36.600 --> 0:18:39.560 nine almost nine years since twenty fourteen, and I was 0:18:39.560 --> 0:18:41.359 always on a mission to help people do more with 0:18:41.400 --> 0:18:43.800 their crypto. And I even though I was in crypto 0:18:43.840 --> 0:18:45.720 for nine years when state when DeFi came out a 0:18:45.720 --> 0:18:48.600 couple years ago, I can understand how DeFi worked. I 0:18:48.600 --> 0:18:50.479 had to google how do I defy? I end up 0:18:50.480 --> 0:18:52.919 in Reddit and then got scared away. And there's a 0:18:52.920 --> 0:18:55.000 lot of people that are in crypto that you know, 0:18:55.080 --> 0:18:57.000 are afraid to admit they don't actually understand how it 0:18:57.000 --> 0:18:59.120 has worked, and we're trying to help them do more 0:18:59.119 --> 0:18:59.720