Speaker 1: From the heart of where innovation, money and power COLLI
Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with
Speaker 1: Emily Jay I'm Emily check in San Francisco and this
Speaker 1: is Bloomberg Technology coming up in the next hour. Tesla
Speaker 1: shares jump after better than expected results showing the car
Speaker 1: maker is getting production back on track. Tesla making more
Speaker 1: evis in June than any other month in the company's history.
Speaker 1: Dig into the numbers. Plus Netflix shares rally big time
Speaker 1: after the streaming giant lost only one million instead of
Speaker 1: two million subscribers. Could this big shift in investor sentiment
Speaker 1: booing markets as earnings roll out over the next few weeks.
Speaker 1: We will dig in and it is game on for
Speaker 1: Phase Clan, the influencer marketing house that counts snoops up
Speaker 1: as a board member. Just what public vias back? Why now?
Speaker 1: Who has to see you taking with tests? I want
Speaker 1: to bring in Steve Wesley West, Sleep Group founder and
Speaker 1: managing partner, also former longtime member of Tesla's board. Steve,
Speaker 1: I know you're liking what you see here. Investors seem
Speaker 1: a little look warm. What are you thinking? Well, look,
Speaker 1: it's great news for Tesla and Tesla investors. Everybody thought
Speaker 1: it's going to be a soft quarter. We knew there
Speaker 1: were supply chain issues combined with COVID closing the China
Speaker 1: facility for twenty two days, and we saw two U
Speaker 1: and fifty four thousand units delivered. Fifty increase year over year.
Speaker 1: That's growth. The big surprise was revenue and profitability. They
Speaker 1: hit sixteen point nine three billion, that's forty year over
Speaker 1: year growth. The biggest news is largest cars deliveries in history.
Speaker 1: In June says they're really ramping up to the back
Speaker 1: end of the year. I think they're on track to
Speaker 1: deliver three thousand units a Q three. I think they're
Speaker 1: gonna hit five thousand and before. If they do that,
Speaker 1: it'll be closer to fifty six growth. Keep in mind,
Speaker 1: analysts for predicting profitability of about a dollar eighty one,
Speaker 1: they hit to seven, so they're on track for record deliveries,
Speaker 1: record profits. Simply put, Tesla's got manufacturing capability in supply
Speaker 1: chain relationships no one else has. Someday they may not
Speaker 1: be king of the hill, but for the next year
Speaker 1: or two, they're looking awful strong. Now they didn't change
Speaker 1: their production forecast. They've made five sixty four thousand vehicles
Speaker 1: so far this year. They say they'll make a million
Speaker 1: and a half. Can they really make twice as many
Speaker 1: vehicles as they made in the first half of the
Speaker 1: year in the second half of the year without a doubt?
Speaker 1: And here's why. Mostly the their car companies General motors
Speaker 1: for it. They have one electric plant that's going online,
Speaker 1: maybe another one or two or three years. Tesla now
Speaker 1: has four plants up and running in California, Austin, uh Shanghai,
Speaker 1: and Berlin, and all four are running. Austin and Berlin
Speaker 1: are going to be pumping into big numbers by the
Speaker 1: tail end of the year. But that's only part of
Speaker 1: the story. The other key part that investors should understand
Speaker 1: is the biggest component in electric cars is the battery.
Speaker 1: Teslaw is the first to bring battery production in house.
Speaker 1: With their new technology, they appear to be the technology leader.
Speaker 1: They're taking the cost curve batteries down fast than anybody else.
Speaker 1: And on top of that, the leaders are providing what's
Speaker 1: called O t A or over the air software services
Speaker 1: that are dropping bigger profits to the bottom line. And again,
Speaker 1: the big story is profitability was way beyond when analysts
Speaker 1: saw and I know a lot of people say this
Speaker 1: test Less stock price is crazy, this is an anomaly
Speaker 1: at how capital markets work. But the fact is, if
Speaker 1: you're going in fifty a year from these big numbers
Speaker 1: fifty three point six billion to what I think is
Speaker 1: going to be eighty six billion, and you're more profitable
Speaker 1: than any other competitor in the market, you're gonna have
Speaker 1: a share price that's the envy of the industry. Big
Speaker 1: story just crossed for Mark Bloomergatto's team, including our own Ludlow,
Speaker 1: that Ford is planning to cut eight thousand jobs out
Speaker 1: of the you know, gas powered side of the business
Speaker 1: in part to fund the e V side of the business.
Speaker 1: And look, Jim Farley has been very serious about taking
Speaker 1: on Tesla and also his admiration for Tesla. How well
Speaker 1: positioned is Tesla compared to Ford, compared to Rivan and Lucid. Look,
Speaker 1: Americans want to know how well GM and Ford and
Speaker 1: Lucid and Riva are doing. But to be honest, there
Speaker 1: behind they came late to the game. Um, they should
Speaker 1: have started years ago. Keep in mind, General Motors has
Speaker 1: been making electric cars for eleven years now and they
Speaker 1: were only able to make twenty five thousand last year
Speaker 1: compared to Tesla's nine d and twenty five thousand, So
Speaker 1: they've got a long way to go. They need to
Speaker 1: kick it into higher gear. That having been said, Ribban
Speaker 1: makes a great ruck, but they too were laying people off.
Speaker 1: They've taken their production numbers down to twenty five thousand. Well,
Speaker 1: Tesla's ramping their predictions up to one point five million.
Speaker 1: The real people look at Volagon, they saw the writing
Speaker 1: on the wall. Herbert Dese has been a leader in
Speaker 1: the sector. He took battery production in house early with
Speaker 1: north Pole. They've got deep pockets factories on multiple continents.
Speaker 1: And then there's the Chinese. Most Americans have never heard
Speaker 1: of a Chinese auto company, but no, this b y
Speaker 1: D lead Pang, x Pang and others are gonna Lee
Speaker 1: Auto and x Panging are going to be coming to market. Four.
Speaker 1: Here's why they're tough. One, they're moving faster than vers
Speaker 1: than any other auto company except Tesla. To the Chinese
Speaker 1: are really subsidizing battery and auto costs. Three they make
Speaker 1: pretty darn good cars, so I expect the global competition.
Speaker 1: It's good for the consumer, but there's gonna be a
Speaker 1: shakeout here. Thirty new electric vehicle companies are coming to
Speaker 1: the market the last twenty four months. We may be
Speaker 1: heading into a recession. More cars, fewer buyers will see
Speaker 1: who winds up on top. To keep an eye on Tesla,
Speaker 1: Folkswagen and the Chinese. But is the China problem going
Speaker 1: to go away? I mean, you still got this twenty
Speaker 1: one day lockdown quarantine excuse me in Shanghai, and you
Speaker 1: just got the unpredictability of an ongoing pandemic where the
Speaker 1: Chinese government could once again crack down and make production
Speaker 1: They're difficult. Well, look, there are two big sign issues
Speaker 1: out there. One is the COVID one with the Chinese
Speaker 1: dude that others just can't for labor. A lot of
Speaker 1: reasons is the Chinese bring the entire workforce eight thousand
Speaker 1: people in the house and they will sequester them for
Speaker 1: weeks at a time so they don't get exposed. So
Speaker 1: I think the COVID issue gets solved. The bigger issue,
Speaker 1: it's the long term geopolitical issue. Is Hi Jinping, who
Speaker 1: is just reconfirmed as the new chairman of China, has
Speaker 1: said he intends to reunify or invade Taiwan at some
Speaker 1: point if you ever see something like that happened. China
Speaker 1: has a huge part of its action capacity, uh Tesla
Speaker 1: has in China. So there's a lot of issues to
Speaker 1: solve for. But right now, what investors need to look
Speaker 1: at who's selling the most and who's going the fast.
Speaker 1: The answer to that question is Tesla. Who's getting the
Speaker 1: smartest and bringing battery costs down and doing more selling
Speaker 1: more over the year software services. The answer to that's Tesla.
Speaker 1: But these aren't big secrets. Volkswagen, Chinese, others will catch up.
Speaker 1: It's going to be a question of who's fleet is
Speaker 1: to foot time to buckle up. How big a problem
Speaker 1: is the Twitter saga? Doesn't seem like Twitter is gonna
Speaker 1: let this go away. And obviously Tesla investors haven't been
Speaker 1: necessarily pleased about the commitments Elon Musk made. Now he's
Speaker 1: trying to pull out of them. What do you think
Speaker 1: Testa and Tesla and Elon or a master making great cars.
Speaker 1: I hope they stay focused on that. I think Twitter
Speaker 1: has been a diversion. I think the more they can
Speaker 1: stay focused on executing, whoever wins the electric car race
Speaker 1: is going to own a fifty year franchise, So you're
Speaker 1: gonna need to keep your eye on the ball. Tesla
Speaker 1: sitting pretty now, but a lot of serious people are
Speaker 1: coming after you, so we'll have to be on our
Speaker 1: toes and I hope Tesla's up to the task. I
Speaker 1: want to see an company win, all right, Wesley Who
Speaker 1: Founder and managing partner, Steve Wesley, thank you as always
Speaker 1: for your insights. Coming up? After Twitter rins round one
Speaker 1: fast tracking and suit against Elon Musk, what's coming in
Speaker 1: round two? Ali Rogani, Why Combinator Managing partner and the
Speaker 1: former CFO and CEOO of Twitter, will share his view
Speaker 1: of the saga and the recent market meltdown. Next, Mrs Bloomberg,
Speaker 1: fast forward to October. That's when Twitter and Neon Musk
Speaker 1: will officially face off in Delaware court. Will Twitter succeed
Speaker 1: in forcing Musk to do the deal, and if so,
Speaker 1: is that actually good for Twitter? For more insight into
Speaker 1: all of this, I want to bring in Ali Rogani,
Speaker 1: Why Combinator Managing partner and former Twitter CFO and c OH. So, Ali,
Speaker 1: what's your take Twitter one round one? That means they've
Speaker 1: potentially got the upper hand in round two? Is that good?
Speaker 1: For the company. Well, I think it's good for Twitter shareholders, um,
Speaker 1: you know, especially seeing the sell off and technology stocks
Speaker 1: over the past couple of months. I think the deal
Speaker 1: is very richly valued in today's terms. And you know,
Speaker 1: I actually expect Twitter to prevail in court. I think that, uh,
Speaker 1: the agreement as pretty ironclad as I read it. Uh,
Speaker 1: and Twitter's lawsuit is very clear. I think, um, you know,
Speaker 1: if you read it, you feel pretty I think find
Speaker 1: it pretty compelling that Musk had agreed to buy the company,
Speaker 1: even in the case of my market downturn. So I don't, um,
Speaker 1: I think this is going to go on Twitter's direction,
Speaker 1: which I think is good for Twitter shareholders. UM. But
Speaker 1: you know, my own personal view, as I said last
Speaker 1: time I was on your program, is an not sure
Speaker 1: it's good for Twitter the service because I don't think
Speaker 1: that um, you know, Twitter being owned by a single person, um,
Speaker 1: particularly one whose public statements have kind of indicated a
Speaker 1: lack of a deep understanding of the way the platform works,
Speaker 1: particularly in areas of trust and abuse, I'm not sure
Speaker 1: that's good for Twitter the service. So that's my personal view. UM.
Speaker 1: And and it's been pretty consistent over time, so let's
Speaker 1: game this out and talk a little bit more about why.
Speaker 1: Let's say Mosque is forced to do the deal. He
Speaker 1: owns Twitter, he could turn right around and sell it.
Speaker 1: You know, that is also a possibility. If he is
Speaker 1: forced to do this deal, then what do you think?
Speaker 1: How it's very awkward to force someone to buy something
Speaker 1: that they are saying they don't want. Um. And I
Speaker 1: don't know how he reacts. I mean, I think one
Speaker 1: thing that Elon has proven is that he's quite unpredictable
Speaker 1: um and quite um you know, uh, extremes sometimes and
Speaker 1: what he wants to do. So your guess is as
Speaker 1: good as mine. You know, if he's forced to buy Twitter, um,
Speaker 1: you know, probably what happens, if I were to just speculate,
Speaker 1: is that it will lead to some kind of renegotiation
Speaker 1: where he has some kind of face saving outcome where
Speaker 1: he can claim he was happy and he becomes a
Speaker 1: happy buyer again. Because I don't think he's going to
Speaker 1: be able to get out of this. Um. I'm not
Speaker 1: a lawyer, but my read of the documents, um, uh,
Speaker 1: that's what I believe. I don't think he's going to
Speaker 1: get out of this. Maybe there's a compromise where he
Speaker 1: pays a little bit less for it, or the terms
Speaker 1: are altered in somewhere or another where he ends up
Speaker 1: magically being a happy buyer again. And we'll see what
Speaker 1: he does. Um. I would be surprised, and I think
Speaker 1: it would be terrible, how come for probably everyone involved
Speaker 1: if he buys it then turns around and looks for
Speaker 1: for a new buyer. UM. I think probably he would
Speaker 1: take a bath on a transaction like that. UM. But
Speaker 1: in any case, Look, I don't My view of Twitter
Speaker 1: is it's too important a company to be a like
Speaker 1: a little hot potato that's jumping from you know, one
Speaker 1: person's hands to another, going private and going public, etcetera.
Speaker 1: You know, if he buys it, I hope he has
Speaker 1: you know, serious enough about really making the platform better
Speaker 1: and helping it to reach its true true potential. UM.
Speaker 1: I think that's everyone's hope. UM. And I still, you know,
Speaker 1: I have my fingers crossed that that somehow happens. So
Speaker 1: part of the reason this is a you know, quote
Speaker 1: unquote good deal for Twitter shareholders is because the market
Speaker 1: has plummeted. Obviously putting on your y combinator hat and
Speaker 1: you know, obviously you know, you've you've been the CFO
Speaker 1: of of of big public companies. You know, how bad
Speaker 1: is this is this for Silicon Valley? How lasting is
Speaker 1: this downturn? And what does it look like as an
Speaker 1: inflection point when we look back a decade from now. Yeah,
Speaker 1: great question. I think it's important to put it into
Speaker 1: the right historical context. I mean, we went through a
Speaker 1: really remarkable period, uh in one in terms of technology stocks,
Speaker 1: where the covid um sort of changes in the COVID
Speaker 1: economy really benefited a lot of tech stocks, and there
Speaker 1: was a feeling that like everything was moving into the
Speaker 1: internet immediately um. And we saw a really historic run
Speaker 1: up on technology stocks, with stocks trading at multiples that
Speaker 1: had kind of never been seen before. And so everyone
Speaker 1: was expecting a correction. Um. Perhaps not one that was
Speaker 1: as rapid and severe as what we've seen, but everyone
Speaker 1: was expecting a correction, and that's what we've seen. So,
Speaker 1: you know, I think there are a number of companies,
Speaker 1: great technology companies, recent I p o s like door
Speaker 1: Dash or Data Dog. They're just wonderful companies, and I
Speaker 1: think they've been oversold. That's my personal view. But I
Speaker 1: think if you zoom out. My expectation is that um,
Speaker 1: this will be like other things, um, you know, like
Speaker 1: other recessions and talent times of market. You know, turbulence
Speaker 1: will be seen as just another one, perhaps one would
Speaker 1: a slope downward as a little sharper, but nothing that
Speaker 1: fundamentally alters the view that technology is changing our society,
Speaker 1: and that technology companies that are driving that change will
Speaker 1: be valuable, and that there are many of more of
Speaker 1: them to come in our portfolio. Companies like Stripe and
Speaker 1: brex uh and uh, those are some of the public
Speaker 1: stocks that are ye combinator companies. But um, you know,
Speaker 1: the Stripes, the Brexast, the Fairs, Gusto, it's that are
Speaker 1: there are a lot more amazing companies that have great businesses, uh,
Speaker 1: that you know will continue to be disruptive and will
Speaker 1: continue to be really amazing assets for investors to own. Well,
Speaker 1: it's interesting you mentioned Stripe because obviously they've been in
Speaker 1: the news for sort of an internal revaluation. Paul Graham,
Speaker 1: the co founder of hy Combinator, has this essay called
Speaker 1: Default Dead, Default Alive. Who do you think survives? Who
Speaker 1: do you think dies in this downturn? And how is
Speaker 1: that informing your investment decisions. Now. So this may surprise you,
Speaker 1: but almost every company private company that you know, has
Speaker 1: a reputation you know that people on your program will
Speaker 1: have probably heard of. I think they all survive. Uh.
Speaker 1: And the reason is the markets have been so frothy
Speaker 1: over the past few years that almost every promising technology
Speaker 1: come in the mid to late stages is extremely well capitalized.
Speaker 1: I mean, these are companies that have raised hundreds of
Speaker 1: millions of dollars. And yeah, there have been some downsizing
Speaker 1: and some adjustments, um, but in most cases those were
Speaker 1: done not because the companies were under dress, but because
Speaker 1: they said, hey, this is an opportunity for us to
Speaker 1: right size the business a little bit. Given the economic climate,
Speaker 1: everyone will understand and lengthen our runway. So I don't
Speaker 1: expect for you know, mid to late stage private companies,
Speaker 1: for there to be a blood bath at all. I
Speaker 1: expect modest belt tightening, but almost all these companies are
Speaker 1: going to just continue to invest in growth. Interesting that's
Speaker 1: a more optimistic view than we've heard. Um Ali Roghani,
Speaker 1: managing partner at y Combinator, also the former CFO and
Speaker 1: CEO of Twitter. Great to have your thoughts. Here on
Speaker 1: the show thank You, Thank You, Great to be with you.
Speaker 1: Apple is arguing that is now a major force in healthcare.
Speaker 1: The iPhone maker is published and almost sixty page report
Speaker 1: outlining all of its health features and partnerships with various
Speaker 1: medical institutions. Though the Apple Watch dominates the market, the
Speaker 1: device hasn't always gotten new health features as quickly as
Speaker 1: its competitors. Bloom, we're smart, German here to tell us,
Speaker 1: spart Mark tell us. But what is in this report?
Speaker 1: So this is a nearly sixty page report, and I
Speaker 1: rarely see Apple do things like this. Typically, when they
Speaker 1: want to tout their initiatives, they make a new website
Speaker 1: for it, they put out a an event or a
Speaker 1: video of some sort. But this is more of an
Speaker 1: academically focused report. It's not for consumers. That really showcases
Speaker 1: all the health and fitness and workout related features you know,
Speaker 1: as we all know and use across the iPhone, of
Speaker 1: the Apple Watch and the rest of its ecosystem. It
Speaker 1: dives deep into how all the features work. They talk
Speaker 1: about some of the research studies. They have sleep studies,
Speaker 1: they have walking studies, they have heart studies, and how
Speaker 1: all of that works. Together complete in concert with different
Speaker 1: medical institute sans and medical partners they have, you know,
Speaker 1: globally to produce new features for their products. That's what
Speaker 1: I thought. I don't I can't remember a time that
Speaker 1: Apple has done this previously. You know, what does they
Speaker 1: say about their plans for the future. I mean, that's
Speaker 1: what we want to know is how will you know
Speaker 1: health tech increasingly be integrated into all of my Apple devices? Yeah,
Speaker 1: it's fascinating. I think that health functionality will really spread
Speaker 1: to all of Apple's future products. I mean, don't forget
Speaker 1: the air pods, upcoming virtual reality headset, future augmented reality glasses.
Speaker 1: You're gonna see some health integration probably in all of
Speaker 1: those products at some point. Maybe one day your air
Speaker 1: pods to be able to tell you your your heart rate, right,
Speaker 1: or your body temperature. Maybe you'll have some health workout
Speaker 1: functionality related to Apple's headset, just like Meta has with
Speaker 1: its oculus move feature on its VR in a R headsets. Right.
Speaker 1: So the Apple future of health is very strong. This year,
Speaker 1: they're going to add a body temperature sensor to the
Speaker 1: Apple Watch, to new Apple Watch models with that feature
Speaker 1: until if you have a fever or other things going on.
Speaker 1: There'll be new women's health features tied to the new
Speaker 1: hardward this fall. Specifically, Apple wants to release a blood
Speaker 1: pressure feature for the Apple Walk, something that Samsung and
Speaker 1: others have had, but of course Apple needs to get
Speaker 1: in that space two and they're also very invested in
Speaker 1: an R and D project to bring blood sugar monitoring
Speaker 1: to the watch eventually as well. Buying Peloton or has
Speaker 1: Apple purposely let that ship sail? I think the ship
Speaker 1: is sailed for sure on Apple buying Peloton, unless it
Speaker 1: gets to an absurdly low price and Apple finds a
Speaker 1: way to really integrate it. I don't think Peloton is
Speaker 1: necessary to Apple. If Apple wanted, it can start producing
Speaker 1: bikes and treadmills at a far cheaper cost than what
Speaker 1: it would take to buy Peloton, unless there is a
Speaker 1: fire sale at some point. I also think they'd rather
Speaker 1: integrate their features into their existing ecosystem rather than add
Speaker 1: that really expensive business that fitness hardware would be all right,
Speaker 1: Mark German as always covers Apple and Peloton for us.
Speaker 1: Thanks Mark, But there was a single thing that might
Speaker 1: say stranger things. But again we're talking about, you know,
Speaker 1: losing one million instead of losing two millions. So you
Speaker 1: tough in in some ways losing a million and calling
Speaker 1: at success, but you know, really we're set up very
Speaker 1: well for the next year. Well come back to Bloomber Technology.
Speaker 1: That was Netflix co CEO Read Hastings on the Ernies call,
Speaker 1: I'm want to get to the Netflix relief rally after
Speaker 1: it over promised on subscriber losses for the second quarter.
Speaker 1: James CHOCKMK, partner at Clockwise Capital, joins us now to discuss. James,
Speaker 1: good to have you back here on the show. So
Speaker 1: turns out over promising in this case was a good thing.
Speaker 1: But how good a thing? How confident are you that
Speaker 1: Netflix can continue it cut its losses. I think it's
Speaker 1: gonna be difficult. Um, you know, they have a lot
Speaker 1: of battles to contend with. But I think when you
Speaker 1: look at the stock and the reaction, you know what
Speaker 1: a difference, you know, a quarter or two makes, you
Speaker 1: know that we're seeing a big shift in the tone
Speaker 1: of the market. I mean this Netflix was a company
Speaker 1: that only treated on subscriber growth. What's the sub number?
Speaker 1: What's the sub number? You know that that's pretty much
Speaker 1: was the singular metric that people looked at now you
Speaker 1: had a decline in subs and a downward guidance to
Speaker 1: the third quarter subs and that the third quarter downward
Speaker 1: outlook uh so in the stock. So there's clearly a
Speaker 1: shifting sentiment and a reprioritization of what the metrics relevant
Speaker 1: metrics are and it's increasingly looking like it's going to
Speaker 1: be monetization over the absolute number of subs. So here's
Speaker 1: the question. The markets took a turn in part because
Speaker 1: of Netflix big loss in subscribers three months ago, which
Speaker 1: was totally unprecedented. Do you think that this shifting sentiment
Speaker 1: will buoy markets through earnings over the next six weeks
Speaker 1: near term? Yeah, absolutely, I think I think that the
Speaker 1: sentiment has become so bad and the bar is so
Speaker 1: low that you aren't going to see, um, some some
Speaker 1: level of relief. Obviously we're not out of the woods
Speaker 1: as it relates inflation what the FED is going to do.
Speaker 1: But I do think that these companies have have come
Speaker 1: down way too much, and I think that what you're
Speaker 1: going to be seeing is an increasing appreciation for mean
Speaker 1: reversion in the growth rates. And what I mean by
Speaker 1: that is that you know, these companies pulled that companies
Speaker 1: pulled forward so much demand during COVID and then you
Speaker 1: had this growth drop off the last couple of quarters
Speaker 1: where it looks like, is this a structural change in
Speaker 1: the growth rates where demand is actually slowing, or is
Speaker 1: this a mean reversion where we're just going to revert
Speaker 1: back to the original growth curve. And I think what
Speaker 1: people are investors are starting to increasingly areciate is that
Speaker 1: we're just coming back to the original growth group and
Speaker 1: that these companies can and will grow um the way
Speaker 1: that we thought before COVID, and in some cases like Amazon,
Speaker 1: like Microsoft, um like Apple, potentially even better uh than
Speaker 1: they were before COVID. And as far as Netflix is concerned,
Speaker 1: you know, this is still a company. You know, the
Speaker 1: advertising is not easy, and you're contending with juggernauts like Amazon,
Speaker 1: like Facebook, like Google. And when you think about the
Speaker 1: level of differentiation you have as a service versus them
Speaker 1: um in in order to targeting capabilities and whatnot, it's
Speaker 1: not that much. You know, we consider we put Netflix
Speaker 1: in the bucket of old media and then likely should
Speaker 1: be valued as such. Interesting, So, if the streaming wars
Speaker 1: are turning into an ad war, who wins you know,
Speaker 1: obviously there's Netflix, there's HBO and Disney Plus that are
Speaker 1: also experimenting with advertisers. And then on the other side
Speaker 1: you've got Facebook and Google, which has been doing this
Speaker 1: for a really long time and snap. Yeah. I think
Speaker 1: that the big guys Amazon, Apple, Facebook and Google will
Speaker 1: continue to command great share because of the fact that
Speaker 1: they are platforms um which which provide great stickiness for
Speaker 1: their customers and great targeting capabilities from the data that
Speaker 1: they collect. But we do think that it can become
Speaker 1: increasingly fragmented as as other outlets explore their advertising um capabilities,
Speaker 1: in a word, to better monetize their businesses. But ultimately,
Speaker 1: you know, we don't see We see the likes of
Speaker 1: Amazon gating a disproportionate share and Netflix having to contend
Speaker 1: with everybody else, And when you think about the data
Speaker 1: that they have, you know, how is it much more
Speaker 1: differentiated than what a linear television station has. All right,
Speaker 1: interesting view there. Um, we will of course continue to
Speaker 1: cover all of this. James Chapman, Clockwise Capital, thank you
Speaker 1: for waiting. Meantime. Phase Clan is one of the biggest
Speaker 1: e sports companies in the world, with eleven competitive teams
Speaker 1: in games like counter Strike in Fortnite. The company has
Speaker 1: officially started trading on the NASDAC Phase Clan a lifestyle brand,
Speaker 1: a gaming lifestyle brand that's now extremely popular with younger
Speaker 1: audiences and includes big personality streamers and content creators like
Speaker 1: Snoop Dob, who's also on the company's board. CEO Lee
Speaker 1: Trad joins us now live from the NASDAC League. Good
Speaker 1: to have you here on the big day. You know,
Speaker 1: everybody thought that the go public window has been slammed
Speaker 1: and sealed shut for the foreseeable future. Why did you
Speaker 1: decide to try to rip it open? Well, first of all,
Speaker 1: thank you, Emily, I really appreciate you having me. UM.
Speaker 1: Big day, great day for gaming, great day for gen
Speaker 1: Z UM. And you know, you know, talking about gen Z,
Speaker 1: the the timing is actually prescient because gen Z is
Speaker 1: actually rising to power, not only as a cultural driver
Speaker 1: um like all youth youth generations are. But there are
Speaker 1: clips and there are clips in your drivers as just
Speaker 1: culture into changing how we transact, UM, changing how they consume.
Speaker 1: And by the end of the decade, they're gonna have
Speaker 1: thirty three trillion dollars of spending power. And so what
Speaker 1: we're seeing is this ascendency of gen Z. I think
Speaker 1: that we're, um, we're we typify that ascendency as the
Speaker 1: first gen Z native public native company to go public.
Speaker 1: Um and so I think I think the timing feels perfect.
Speaker 1: Shares did drop some, you know, or so, I mean,
Speaker 1: do you still think the timing is right? Uh? The
Speaker 1: timing is definitely right. And the reality is, uh, this
Speaker 1: day is about the launch of the of the first
Speaker 1: gen Z native company to go in public. It's not
Speaker 1: about the market conditions to a We're building value for
Speaker 1: the long term. You know, we're check in with us
Speaker 1: at twelve months, at eighteen months, at twenty four months.
Speaker 1: We're building value for our community, for our shareholders, um
Speaker 1: and uh, and we'll just be building for the long term.
Speaker 1: The phase is at the intersection of some really volatile
Speaker 1: industries including a sports and web three. You know, talk
Speaker 1: to us about what makes this uh you know, sort
Speaker 1: of cocktail this place where you sit in business so
Speaker 1: unique and potentially valuable. So we really do sit at
Speaker 1: the at the intersection of technology and culture. That's really
Speaker 1: what we did starting in right, gaming sits at at
Speaker 1: the intersection of technology and culture. I don't think people
Speaker 1: understood that about gaming, that gaming is culture. UM. Gaming
Speaker 1: culture has become youth culture overall. UH. And we've been
Speaker 1: pioneers at that, and our plan is to continue to pioneer.
Speaker 1: And a great example of that is Web three, which
Speaker 1: also happens to be led and driven by culture at
Speaker 1: the moment. And so we've been positioning ourselves amongst all
Speaker 1: of the blue chip companies and brands within Web three,
Speaker 1: and we see our opportunity to bring the massive gaming community,
Speaker 1: which is not yet in Web three. We see the
Speaker 1: opportunity for us to build that bridge and usher in
Speaker 1: that massive gaming audience, not only our five million plus
Speaker 1: follower network, but the gaming community at large into what
Speaker 1: will be UM really a colossal part of our future.
Speaker 1: That that frankly will will disrupt UM not only what
Speaker 1: you've seen so far and things like like art but UM,
Speaker 1: but Web three is going to impact commerce overall. UM. So,
Speaker 1: so we're positioned ourselves to to bring our generation into
Speaker 1: that and UH and we and we see that as
Speaker 1: an amazing opportunity for us. What don't investors understand yet
Speaker 1: about how gen z is is really going to change
Speaker 1: things and how to capitalize on these trends. So I
Speaker 1: think what we've seen so far is the way they
Speaker 1: consume content, right, They've they've moved away from the traditional
Speaker 1: the traditional spaces of content heavy on YouTube, heavy on Internet,
Speaker 1: heavy on Twitch, And that's really the beginning of the change.
Speaker 1: That's not the totality of the change. Gen Z just
Speaker 1: demands something different UM from the brands that they support.
Speaker 1: Gen Z wants to be treated as a community, not
Speaker 1: a customer. At this point, I hesitate to always use
Speaker 1: the word customer because it almost feels pejorative from the
Speaker 1: gen Z lens, and I think that that the majority
Speaker 1: of of traditional companies don't really understand it. They don't
Speaker 1: understand that see change. They don't understand that gen Z
Speaker 1: is rising to power in a different way. You know
Speaker 1: again by by the by the end of the decade,
Speaker 1: to have thirty three trillion in buying power. Another another
Speaker 1: sign of this is that this this election is where
Speaker 1: we're seeing the first gen Z candidates for Congress UM
Speaker 1: and so there's a massive sea change coming. I think
Speaker 1: a lot of companies are are are not quite prepared
Speaker 1: for the amount of change that's required to treat their
Speaker 1: their customers as their community. UM and you know we
Speaker 1: speak the gen Z language natively. Um, we've been leading
Speaker 1: gen Z on on the culture side and we are
Speaker 1: and we're continuing to lead them on the commercial side
Speaker 1: as well. Alright, Lee Training Phase Clan CEO. We will
Speaker 1: continue to watch y'all. Thanks for take off. Thank you. Meantime,
Speaker 1: Tesla Arties call still underway, Musk stating that the company
Speaker 1: has the potential for record breaking output in the second
Speaker 1: half of this year. Again, it would have to be
Speaker 1: record breaking if they're going to make their own targets. Plus,
Speaker 1: he says, the Tesla cyber truck is on track to
Speaker 1: debut next year. We're gonna continue to listen to it,
Speaker 1: listen in and bring you the headlines as we have
Speaker 1: them coming up. Sam Bank and Freed's growing empire. We're
Speaker 1: gonna talk about the crypto billionaires spending spree and his
Speaker 1: intentions behind it all in the middle of a very
Speaker 1: coold crypto winter that is next. This is Bloomberg at
Speaker 1: the very least. I want to be doing something that positive,
Speaker 1: like with the making money perk, like like a I
Speaker 1: want to be good actor there. It is time now
Speaker 1: for our Crypto Report as we take a look at
Speaker 1: one of the most prominent figures in the industry, and
Speaker 1: that is f t X founder and CEO Sam Bankman Freed.
Speaker 1: Over the span of two weeks in June, the crypto
Speaker 1: billionaire bought two companies, propped up the crypto platform black Fly,
Speaker 1: and tried to save another, Voyager Digital with a large loan.
Speaker 1: In all, he committed about a billion dollars all in
Speaker 1: the midst of a crypto rout that has wiped two
Speaker 1: trillion dollars in market value out in just eight months.
Speaker 1: Let's bring in Hannah Miller now for more on today's
Speaker 1: big take. Hannah, thank you. It is just fascinating to see, uh,
Speaker 1: you know, just how ambitious and seemingly successful ASBF has
Speaker 1: seemed to be. But there are competing views of him
Speaker 1: within the industry. Is he more of the messiah or
Speaker 1: is he a shark? Yes? No, you have people calling
Speaker 1: Sam Bankman Fried the patron saint of crypto, that he
Speaker 1: is bailing out the industry, coming swooping in as a
Speaker 1: white knight to save struggling companies. And then on the
Speaker 1: other hand, you have people really seeing him as a
Speaker 1: robber baron consolidating power and control over the industry. So
Speaker 1: as we have spoke at our Bloomberg Crypto Summit this week,
Speaker 1: I want to take a quick listen to what he
Speaker 1: had to say. Certainly, the asset you know, price declined
Speaker 1: a strong sign that in crypto and Frankling a lot
Speaker 1: of fintech like there, like things were way too late
Speaker 1: on use cases, and that there's a lot of hand
Speaker 1: waving going on both on use cases and on sort
Speaker 1: of financial modeling. That was suspect tell us a little
Speaker 1: bit more about his view on this market downturn. I mean,
Speaker 1: clearly he is more optimistic than the markets would suggest.
Speaker 1: But busy right. Yes, No, he puts protecting customers above
Speaker 1: all else. Um. Within this industry, UM, he is looking
Speaker 1: to swoop in, help people out. He believes that this
Speaker 1: is an industry with extremely strong long term prospects. Um.
Speaker 1: He while he sees opportunity in terms of buying up
Speaker 1: companies bailing out others. UM. He thinks that by helping
Speaker 1: these companies you can ensure that customer's assets remain safe.
Speaker 1: Are you expecting his acquisitions free to continue? What's next? Yeah,
Speaker 1: So we know that f t X and f t
Speaker 1: x US is both these companies are focused on raising funding. UM,
Speaker 1: we know that they're in talks with people. That's pretty
Speaker 1: unique because venture capitalists have really cooled down on the
Speaker 1: industry um within the past few months in light of
Speaker 1: crypto winter. So it's pretty fascinating to see that he
Speaker 1: still has a lot of compidence he can raise funds
Speaker 1: at high valuations. He's also eyeing assets at distressed companies
Speaker 1: and bitcoin minds for acquisitions. Meantime, you've got Elon Musk,
Speaker 1: who you know, at one point was also considered a
Speaker 1: sort of crypto savior, uh, coming out and saying that
Speaker 1: Teslas sold seventy of its bitcoin purchases turned that into
Speaker 1: cash to improve its cash position. I mean, do you
Speaker 1: expect something like that to have, you know, a continued
Speaker 1: negative effect on the industry or can the optimism of
Speaker 1: bulls like Sam Bankman Freed went out. Yeah, I think
Speaker 1: that Sam Bankman Freed's support for the industry shows that,
Speaker 1: you know, there are people who have confidence in it.
Speaker 1: He's also has his eyes outside of the crypto industry.
Speaker 1: He's talked about um, you know, even choked around about
Speaker 1: buying Golden Sacks, and we've also reported that he was
Speaker 1: eyeing a potential takeover of Robin Hood, so he sees
Speaker 1: mainstream finance blurring with crypto and while big names like
Speaker 1: Elon Musk may be dampening a little bit on their
Speaker 1: enthusiasm for the industry, it seems like those within it
Speaker 1: have the competence to branch out beyond it and are
Speaker 1: still competent about so long term prospects interesting. All right, Well,
Speaker 1: I'm sure there are many more twists and turns to come.
Speaker 1: Bloomberg's Hannah Miller with this week's big Take, Thank you.
Speaker 1: The pandemic has of course changed how we look at healthcare,
Speaker 1: and the digital health landscape was a booming industry through
Speaker 1: COVID nineteen. But where are we now. Let's take a
Speaker 1: look at the future of health tech with Dina Shaquire,
Speaker 1: a partner at Lux Capital. Obviously, there's been a lot
Speaker 1: of optimism about the future of healthcare technology, in part
Speaker 1: accelerated by the pandemic, but we've also seen some of
Speaker 1: these companies like cerebral Um a string of other companies
Speaker 1: that have had layoffs coupled with this downturn. How optimistic
Speaker 1: or how bright is the future really? Bottom line is,
Speaker 1: I'm still incredibly bullish, as are we at Lux healthcare
Speaker 1: is fundamentally recession proof. Human health will always continue to
Speaker 1: be a big sector. Humans are not going anywhere anytime soon.
Speaker 1: We'll continue to give birth, will continue to get sick,
Speaker 1: and we'll continue to die. And while the pandemic may
Speaker 1: have accelerated growth in certain areas, it's also sort of
Speaker 1: opened up a watershed of opportunity for the key stakeholders
Speaker 1: in the industry will have no choice but to undergo
Speaker 1: a digital transformation. How is the downturn impacting the industry
Speaker 1: impacting valuations? You know, I'm sure companies are struggling under
Speaker 1: the pressure of this. Absolutely, there's no denying we are
Speaker 1: not immune from the macro at all, and certainly health
Speaker 1: tech in particular, given it as very services oriented, is
Speaker 1: keenly affected by it, particularly at the later stage. So
Speaker 1: we're seeing there's still a massive influx of funds that
Speaker 1: venture funds are raising focused on healthcare. In fact, SPB
Speaker 1: just released a report this morning documenting that, and I
Speaker 1: think it's on track to be the third highest year
Speaker 1: of venture fundraising in history. There has been a slowdown
Speaker 1: in terms of dollars deployed towards healthcare, So it's the
Speaker 1: latest stage companies in particular that will see it's not
Speaker 1: quite the fundraising environment of one. Apple just came out
Speaker 1: with unique for Apple, a sixty page report detailing its
Speaker 1: role in the health tech industry. Is Apple going to
Speaker 1: own this industry as a device maker and an operating system?
Speaker 1: You know, this has always been a big question for healthcare.
Speaker 1: I t is it going to be Apple? Is it
Speaker 1: going to be Google? What rolled us face of play?
Speaker 1: I think it's no denying and especially now with the
Speaker 1: Apple watches that we're all wearing that there is a
Speaker 1: massive consumer trust in Apple and iOS and that it
Speaker 1: will be very interesting to see how providers actually step
Speaker 1: up to integrating this data with their e mrs. I
Speaker 1: think if they can bridge that gap, there could be
Speaker 1: something very interesting and last you know, and I know
Speaker 1: this isn't necessarily a quick question, but obviously the overturning
Speaker 1: of Row versus Wade, how does that change you know,
Speaker 1: where you're thinking about putting your money and your view
Speaker 1: on this industry where you FORRANTO human's health. You know,
Speaker 1: of course we've been long term investors in women's health,
Speaker 1: and fundamentally women's health is population health. This overturning has
Speaker 1: been a very sad moment, not just for women but
Speaker 1: for all of us. And it's also been a moment
Speaker 1: where employers are stepping up to the table where we've
Speaker 1: seen major companies taking stands funding the care of women
Speaker 1: to to cross state lines if they need to to
Speaker 1: to receive the care that we need. One of our
Speaker 1: companies may even clinic is already served, being nearly half
Speaker 1: of the Fortune fifteen companies, and they've actually seen an
Speaker 1: increase month over month in terms of the inbound sales
Speaker 1: opportunities for companies who want to do more for their
Speaker 1: women and for their families, who want to address the
Speaker 1: maternal health crisis that we face in this country where
Speaker 1: women today are percent more likely to die in childbirth
Speaker 1: than our mothers before us, and that's three to four
Speaker 1: x if you're a black or a woman of color.
Speaker 1: CEO of Maven, which obviously one of your companies, was
Speaker 1: just on the show and she talked about maternity deserts
Speaker 1: in these pockets of places across the country that just
Speaker 1: don't have at a quick care Udeo Shaquier Lux Capital.
Speaker 1: Always great to have you here on the show. Thank
Speaker 1: you great to be here for stopping by UM We've
Speaker 1: been continuing to listen into that Tesla earnings call. Elon
Speaker 1: Musk has been talking about his decision to sell the
Speaker 1: majority of the company's stake in bit coin SEV. Take
Speaker 1: a listen to what he had to say the recently
Speaker 1: sold a bunch of hed coin hold agent is that
Speaker 1: we were uncertain as to when the COVID lockdowns in
Speaker 1: China would alleviate, so it was important for us to
Speaker 1: maximize our cash position given the answer of the COVID
Speaker 1: lockdowns in China. Musk also said he's open to increasing
Speaker 1: the company's bitcoin position in the future, and he said
Speaker 1: he's holding on to his doors and that does it.
Speaker 1: For the edition of Bloomberg Technology tomorrow, we're gonna be
Speaker 1: speaking with a T and T CEO, John Stanky. That'll
Speaker 1: be a big one. He'll be talking to us about
Speaker 1: earnings in the state of the wireless industry. And as always,
Speaker 1: don't forget to check out our podcast wherever you get
Speaker 1: your podcast. I'm Emily Chang in San Francisco. This is
Speaker 1: Bloomberg