WEBVTT - 2024 IPOs, Travel Tuesday and Tesla's Cybertruck 0:00:02.040 --> 0:00:07.320 From Marhard. We're Innovation, Money and Power colle in Silicon Valley, NBN. 0:00:07.680 --> 0:00:24.759 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:25.400 --> 0:00:27.840 I'm Caroline Heide of Bloomberg's World headquarters in New York, 0:00:28.280 --> 0:00:29.960 and I'm d Ludlow in San Francisco. 0:00:30.160 --> 0:00:31.400 This is Bloombay Technology. 0:00:31.440 --> 0:00:33.800 Coming up, we get a read on the IPO market. 0:00:34.000 --> 0:00:37.280 That's as retail Machine files confidentially for a US listing, 0:00:37.479 --> 0:00:39.760 while Reddit it tests the water for a twenty twenty 0:00:39.800 --> 0:00:41.040 four public offering. 0:00:41.080 --> 0:00:44.360 More ahead, plus we'll talk the state of the consumer 0:00:44.680 --> 0:00:47.839 on this travel Tuesday and Amazon reports new records for 0:00:47.880 --> 0:00:50.159 Black Friday and Cyber Monday sales. 0:00:50.479 --> 0:00:54.280 And Tesla's production nightmare. Why this cyber truck is continuing 0:00:54.320 --> 0:00:56.760 to be trouble for Tesla ahead of it's all important 0:00:56.760 --> 0:00:59.920 delivery event this week. We'll discuss that so much more. 0:01:00.240 --> 0:01:03.440 This hour, Let's go to companies that well perhaps are 0:01:03.440 --> 0:01:06.520 looking to get into the world of publicly traded pies 0:01:06.560 --> 0:01:09.440 and lose. Let's talk about Sheen's file for an IPO. 0:01:09.520 --> 0:01:12.680 We understand Reddit also again holding talks to potential investors 0:01:12.720 --> 0:01:15.000 as well. Let's get all of it on the strength 0:01:15.280 --> 0:01:17.080 or like there of of an IPO market as we 0:01:17.080 --> 0:01:19.640 look towards twenty twenty four. Butlue most Katie roof, I 0:01:19.640 --> 0:01:22.480 mean a whole lot of news. I mean, not forgetting 0:01:22.480 --> 0:01:24.959 skims of course of Kim Kardashian and one of the 0:01:25.000 --> 0:01:28.920 helm and that particular business. But start on sheen. What 0:01:28.959 --> 0:01:30.920 are we thinking the appetite would be like for a 0:01:30.920 --> 0:01:33.399 company that basically is rivaling h and emon Zara. 0:01:34.720 --> 0:01:38.400 That's right, So they just filed confidentially for a US IPO. 0:01:38.520 --> 0:01:41.720 They're hoping to go sometime next year. We think they 0:01:41.760 --> 0:01:46.119 could be valued as much as ninety billion dollars. They 0:01:46.160 --> 0:01:48.840 have low price points, which has been very popular with 0:01:49.000 --> 0:01:54.080 US consumers in global consumers. They were Chinese founded, but 0:01:54.120 --> 0:01:57.720 they moved their headquarters to Singapore, so this technically wouldn't 0:01:57.720 --> 0:02:00.760 be a Chinese company listing in the US. Obviously, there's 0:02:00.800 --> 0:02:04.160 been a little a lot of the geopolitical tensions there, 0:02:04.320 --> 0:02:06.320 but the Singapore makes. 0:02:06.160 --> 0:02:07.040 It more amenable. 0:02:08.520 --> 0:02:10.440 Reddit's an interesting one as well, Katie, And it was 0:02:10.440 --> 0:02:12.639 funny I spent the morning reading about reddits kind of 0:02:12.680 --> 0:02:15.800 more recent history, and you realize that they actually first 0:02:15.840 --> 0:02:20.160 started this IPO discussion January twenty twenty two, which the 0:02:20.160 --> 0:02:22.200 other way looking at it was two years ago. What 0:02:22.360 --> 0:02:24.000 is the latest on a reddit listing. 0:02:25.200 --> 0:02:27.600 Sure, so they wanted to go public during the last 0:02:27.680 --> 0:02:30.880 IPO boom, but they just missed it, and so they've 0:02:30.880 --> 0:02:35.079 been eagerly waiting for the IPO window to reopen. They 0:02:35.160 --> 0:02:37.600 weren't in the first crop of companies to go public 0:02:37.639 --> 0:02:40.040 this fall, as you know we saw Instacart, Clavio and 0:02:40.080 --> 0:02:43.400 all that, but sources tell us that they are getting ready. 0:02:43.600 --> 0:02:46.400 They are hoping that as soon as Q one that 0:02:46.440 --> 0:02:49.359 they could go public. But obviously, as we've seen, they've 0:02:49.360 --> 0:02:50.560 had a lot of fits and starts. 0:02:51.560 --> 0:02:54.240 Okay, Bloomberg's Katie Roof with a lot of reporting overnight 0:02:54.280 --> 0:02:56.880 about what looks like a busy one Q in twenty 0:02:56.919 --> 0:02:59.720 twenty four. Let's keep the conversation going with Equity Zen's 0:02:59.760 --> 0:03:02.440 head of market Insights, Rihann Lynch, And I guess we 0:03:02.560 --> 0:03:05.800 start with Sheen because the valuation being discussed is mega. 0:03:06.639 --> 0:03:08.800 It is, to all intents and purposes, a kind of 0:03:08.880 --> 0:03:12.679 discount clothing retailer side by side. What do you make 0:03:12.760 --> 0:03:14.400 about it coming to market? 0:03:16.120 --> 0:03:18.480 Yeah, this is one that we've heard is rumored to 0:03:18.560 --> 0:03:21.520 IPO for a while now, and it looks like it's 0:03:21.600 --> 0:03:24.960 finally making that move into the public markets, and it's 0:03:25.000 --> 0:03:28.600 an interesting one to watch. It's different than the cohort 0:03:28.639 --> 0:03:32.040 of companies that we saw went public this fall, and 0:03:32.240 --> 0:03:35.600 it's a company that's been growing really rapidly. They achieved 0:03:35.600 --> 0:03:38.600 twenty three billion dollars in revenue last year, had their 0:03:38.640 --> 0:03:42.080 most profitable half the first half of this year. On 0:03:42.120 --> 0:03:44.600 top of that, they've grown their distribution centers and the 0:03:44.760 --> 0:03:49.600 US camp Europe. They've opened more manufacturing centers in India 0:03:49.680 --> 0:03:50.640 and Brazil. 0:03:50.920 --> 0:03:53.320 And they're really solidifying their US footprint. 0:03:53.880 --> 0:03:58.000 The US is their largest market, you know, fourteen partnerships 0:03:58.040 --> 0:04:00.680 with Forever twenty one and others to you know, create 0:04:00.680 --> 0:04:04.280 that brick and mortar presence. That being said, there is 0:04:04.320 --> 0:04:07.240 a lot of hair around this one. There's concerns about 0:04:07.240 --> 0:04:09.920 their labor practices, their ties. 0:04:09.640 --> 0:04:11.800 To China, you know, and other issues. 0:04:11.840 --> 0:04:15.360 So it's interesting and it will be interesting to see 0:04:15.400 --> 0:04:18.360 how investors think about this one. There really hasn't been 0:04:18.360 --> 0:04:21.000 an apples to apples comparison recently. 0:04:21.120 --> 0:04:25.280 And distinguished for US. The driving force behind Achine wanting 0:04:25.320 --> 0:04:27.760 to go public and for example, a Reddit, it feels 0:04:27.800 --> 0:04:30.039 as though from a Reddit perspective, this is a liquidity 0:04:30.080 --> 0:04:32.640 event that really drives the desire to go public. 0:04:33.600 --> 0:04:35.960 I think that's right. Reddit was founded in two thousand 0:04:35.960 --> 0:04:38.320 and five. This is an eighteen year old company. You'll 0:04:38.360 --> 0:04:41.000 get sheen they're eleven years old, so you know they're 0:04:41.000 --> 0:04:44.880 not young either. And when you look at a mobal level, 0:04:44.880 --> 0:04:48.400 they're over twelve hundred of these unicorn companies valued it 0:04:48.480 --> 0:04:51.240 over three point eight trillion in aggregate, So that's a 0:04:51.279 --> 0:04:53.960 lot of value that has been tied up in the 0:04:54.000 --> 0:04:54.920 private markets. 0:04:54.960 --> 0:04:57.760 And wild platforms like equities. 0:04:57.240 --> 0:05:00.240 Then enable some investors to access this market and some 0:05:00.440 --> 0:05:02.080 shareholders to achieve liquidity. 0:05:02.440 --> 0:05:05.920 There really isn't a wide scale liquidity event until there 0:05:06.000 --> 0:05:06.599 is an IPO. 0:05:07.000 --> 0:05:09.080 So I think a lot of these companies are feeling 0:05:09.200 --> 0:05:12.720 intense pressure from their early investors, from their early. 0:05:12.480 --> 0:05:15.240 Employees to get some liquidity. 0:05:15.440 --> 0:05:18.840 And you know, venture capitalists really aren't looking to pump 0:05:18.839 --> 0:05:21.880 more money into these late stage companies, so the IPO 0:05:22.080 --> 0:05:24.560 is really, you know, they expected next step. 0:05:25.400 --> 0:05:28.760 The reported target valuation for Reddit is fifteen billion dollars. 0:05:28.880 --> 0:05:31.880 The last active user number that I reported, which was 0:05:31.880 --> 0:05:35.080 like months ago, is between fifty and sixty million daily 0:05:35.080 --> 0:05:37.960 active users, which in the grand scheme of things, doesn't 0:05:37.960 --> 0:05:42.240 seem like that many. You talked about the motivation being 0:05:42.240 --> 0:05:45.360 employee liquidity, but what on the about the demand side 0:05:45.360 --> 0:05:48.200 of the equation, Is anyone actually interested in a publicly 0:05:48.240 --> 0:05:48.920 traded Reddit. 0:05:50.920 --> 0:05:53.839 Reddit's an interesting one to watch because they are so 0:05:54.400 --> 0:05:56.120 entwined in the. 0:05:56.080 --> 0:05:58.080 Whole retail investor market. 0:05:58.320 --> 0:06:01.120 They really were in the news a lot at the 0:06:01.200 --> 0:06:05.800 time of the memestock era. Their subreddit Wall Street Bets 0:06:05.880 --> 0:06:09.400 really drove a lot of that retail momentum, So there's 0:06:09.440 --> 0:06:12.120 certainly a tie there, and I think there are some 0:06:12.240 --> 0:06:16.920 super fan and users who will be eagerly watching and 0:06:17.000 --> 0:06:17.560 looking at to. 0:06:17.520 --> 0:06:18.920 Participate in this IPO. 0:06:20.040 --> 0:06:22.279 So while they are maybe one of the smaller social 0:06:22.320 --> 0:06:26.599 platform really do have a loyal user base. And another 0:06:26.640 --> 0:06:29.320 thing to note is that they are growing from a 0:06:29.360 --> 0:06:30.680 profitability perspective. 0:06:31.160 --> 0:06:32.239 It's reported that. 0:06:32.160 --> 0:06:36.120 They're advertising revenue grew thirty one percent in twenty twenty two. 0:06:36.200 --> 0:06:38.920 This has historically been a really small part of their business, 0:06:39.480 --> 0:06:45.240 so an opportunity for them to grow and potentially achieve profitability. 0:06:45.839 --> 0:06:47.279 It'll be interesting to see. 0:06:47.120 --> 0:06:50.400 If they are profitable at the time of considering an IPO, 0:06:50.480 --> 0:06:52.480 because that seems to be a table stake for any 0:06:52.560 --> 0:06:53.839 company considering now. 0:06:54.320 --> 0:06:57.159 It's interesting that in many ways an IPO is often 0:06:57.240 --> 0:06:59.840 a marketing event as well, getting your name out that 0:07:00.160 --> 0:07:04.479 a retail community. And one particular interview we had last 0:07:04.520 --> 0:07:07.599 week amid the whole fura and debarcle around the ousting 0:07:07.720 --> 0:07:11.480 then return of Sam Altman to open ai was one 0:07:11.800 --> 0:07:14.840 very key VC saying well, this wouldn't eventually be a 0:07:14.840 --> 0:07:17.840 bad time to actually ipo open AI. Just take a 0:07:17.840 --> 0:07:18.640 listen for us, Brian. 0:07:19.840 --> 0:07:22.000 I actually think that they should once they get this 0:07:22.000 --> 0:07:24.880 AFT sorted out, immediately filed to go public. I think 0:07:24.880 --> 0:07:27.840 that the demand and the outpouring and interest that you've 0:07:27.880 --> 0:07:31.560 seen and the support for Sam is just absolutely unprecedented 0:07:31.600 --> 0:07:34.120 a tech company. It's almost like an unintended pre IPO 0:07:34.200 --> 0:07:37.040 roadshow to show the overwhelming demand. 0:07:38.320 --> 0:07:41.080 Of lux capital. That was Josh Wolf Brian, you, of 0:07:41.120 --> 0:07:43.760 course make a market in open AI. What would you 0:07:43.840 --> 0:07:45.880 say to the level of demand there is for a 0:07:45.920 --> 0:07:47.760 company like that amid the turmoil. 0:07:49.880 --> 0:07:52.560 When we look at demand amongst our investadors in the 0:07:52.600 --> 0:07:56.240 private markets, AI and machine learning companies are by far 0:07:56.440 --> 0:08:00.160 the most in demand companies on equity sense platforms, so 0:08:00.600 --> 0:08:04.200 not surprising given just the boom in this space, but 0:08:04.240 --> 0:08:07.320 there was certainly a lot of investor interest for AI 0:08:07.480 --> 0:08:11.320 an AI adjacent company, So an interesting take on that one, 0:08:12.120 --> 0:08:16.280 and I'm interested to see kind of if that story 0:08:16.320 --> 0:08:18.800 develops and what comes from that, because there certainly is 0:08:18.840 --> 0:08:20.680 a lot of demand, and when you look at the 0:08:21.000 --> 0:08:24.160 AI market more broadly, a lot of these companies are 0:08:24.240 --> 0:08:28.040 still quite young, so less likely to be IPO candidates, 0:08:28.520 --> 0:08:30.640 but that doesn't mean that there couldn't be one that 0:08:30.680 --> 0:08:33.640 hits the market, and open Ai certainly has the brand name. 0:08:34.559 --> 0:08:37.520 Brian just thirty seconds. Do you expect in active one 0:08:37.600 --> 0:08:40.720 Q twenty twenty four another window to happen? 0:08:42.880 --> 0:08:43.200 I do. 0:08:43.240 --> 0:08:45.960 I do think things will pick up in Q one 0:08:46.120 --> 0:08:46.920 of next year. 0:08:47.240 --> 0:08:49.800 From a macroeconomic perspective. 0:08:49.320 --> 0:08:54.520 We have really good indicator growth, strong GDP, inflation is cooling, 0:08:54.679 --> 0:08:57.679 so from you know, when you look at that now 0:08:57.720 --> 0:09:00.600 as an opportune time to enter the market, IPOs we've 0:09:00.640 --> 0:09:04.080 seen haven't done great, but I don't think that. 0:09:04.040 --> 0:09:06.600 Should be a deterrent for more of these companies next. 0:09:06.400 --> 0:09:10.200 Year, especially those who really have both the liquidity and 0:09:10.240 --> 0:09:12.560 the investor access need to enter the markets. 0:09:12.960 --> 0:09:15.679 Equity sends hell and market Insights Brian Lynch has been 0:09:15.720 --> 0:09:26.840 brilliant talking to you. So an upcoming developers conference has 0:09:26.880 --> 0:09:30.320 been canceled after seeming to list fake female speakers on 0:09:30.360 --> 0:09:33.440 the event's roster, prompting executives from Microsoft and other firms 0:09:33.600 --> 0:09:36.920 to back out of the Devternity conference. My tickets are 0:09:36.920 --> 0:09:39.520 actually selling for up to eight hundred and seventy dollars apiece, 0:09:39.840 --> 0:09:41.920 joining us now. One of the people reporting this out 0:09:41.920 --> 0:09:45.440 bluembg's lsir own and I mean totally extraordinary. The events 0:09:45.520 --> 0:09:48.880 organizer confirming it's been canceled. What was it? He was 0:09:49.280 --> 0:09:52.280 auto generating women in particular as speakers. 0:09:52.800 --> 0:09:56.600 That's the story of what he said happened. So this 0:09:56.880 --> 0:10:01.000 conference to Eternity had a number of speakers listed, and 0:10:01.040 --> 0:10:05.360 then a newsletter writer came out on x saying that 0:10:06.360 --> 0:10:10.480 actually this one profile has been AI generated. Another one 0:10:10.520 --> 0:10:15.000 seems very suspicious, and from their participants started dropping out. 0:10:15.040 --> 0:10:18.600 They just said it was very suspicious. The gentleman who 0:10:19.200 --> 0:10:23.920 organized the conference since said that one of the accounts 0:10:24.160 --> 0:10:26.560 or one of the profiles had been auto generated. 0:10:26.640 --> 0:10:28.679 It had been a mistake. He has since removed it. 0:10:29.520 --> 0:10:31.719 But then there was a far more pervasive issue of 0:10:32.160 --> 0:10:35.920 confirmed speakers Whitson's dropped out, their profiles were still up 0:10:35.960 --> 0:10:40.520 on the screen, including two women who had shifted for 0:10:40.679 --> 0:10:44.640 various reasons, and so there was a lot of concern 0:10:44.760 --> 0:10:48.719 that there was a plot to make the account look 0:10:48.840 --> 0:10:51.719 or to make the conference look more diverse than it 0:10:51.760 --> 0:10:52.200 really was. 0:10:53.720 --> 0:11:00.000 So the organizer, Edwards Sizovs, has confirmed that Devternity's been cancer. 0:11:00.320 --> 0:11:01.200 It's not happening. 0:11:01.760 --> 0:11:05.560 But let's go back to his rational He said this 0:11:05.760 --> 0:11:08.640 was not about giving the appearance of a more diverse 0:11:08.679 --> 0:11:12.720 conference than was actually the case. It was about a 0:11:12.760 --> 0:11:15.360 mistake essentially that he had made. 0:11:15.960 --> 0:11:17.480 Yes, that's exactly what he said. 0:11:17.600 --> 0:11:18.280 What happened. 0:11:18.360 --> 0:11:20.960 But one of the bigger pervasive issues is that we 0:11:21.000 --> 0:11:25.720 know that tech is still chronically under represented when it 0:11:25.760 --> 0:11:29.079 comes to female developers. One report said that the tech 0:11:29.160 --> 0:11:32.240 industry is still less than thirty percent female, and so 0:11:32.280 --> 0:11:34.680 there has been this really big push to make sure 0:11:34.960 --> 0:11:39.959 that these conferences that everything is really representative, that they 0:11:39.960 --> 0:11:42.320 have a really good mix. Some of these speakers who 0:11:42.320 --> 0:11:45.800 were confirmed as allies have even said I'm not going 0:11:45.840 --> 0:11:48.440 to appear at a conference unless there's a really decent 0:11:48.480 --> 0:11:51.720 representative mix, and so when they pulled out, they said 0:11:51.720 --> 0:11:55.920 that they had been duped and that their clauses had 0:11:56.000 --> 0:11:57.880 you know, it didn't pass muster for the clauses. 0:11:58.800 --> 0:12:02.120 Okay, Bloomberg's Elliser, and thank you so much for that reporting. 0:12:02.520 --> 0:12:04.360 Coming up here on Bloomberg Technology, we're going to talk 0:12:04.360 --> 0:12:07.559 about the state of the consumer. As Amazon says, Black 0:12:07.600 --> 0:12:11.120 Friday and Cyber Monday shopping broke records this year. 0:12:11.400 --> 0:12:13.559 More on that next. This is Bloomberg Technology. 0:12:31.280 --> 0:12:34.280 The consumers had a remarkable resilience, but I do think 0:12:34.320 --> 0:12:37.120 the momentum will start to slow, and I mean evidence 0:12:37.160 --> 0:12:39.720 of that is that we are seeing more usage of 0:12:39.720 --> 0:12:41.800 credit cards to fund these transactions. 0:12:41.840 --> 0:12:44.400 To credit card balances are at all time highs. 0:12:45.360 --> 0:12:47.520 Your colleague was just speaking about the fact that by 0:12:47.600 --> 0:12:50.439 now pay later is factoring into this as well. We're 0:12:50.440 --> 0:12:55.079 seeing delinquencies across the consumer spectrum, across the full income spectrum, 0:12:55.160 --> 0:12:59.400 start to increase from very low levels, but increase nonetheless. 0:13:00.440 --> 0:13:03.520 A mega Black Friday in Cyber Monday. But Lisa Hornby 0:13:03.600 --> 0:13:06.359 strowed as earlier on the state of consumers, some concerns 0:13:06.760 --> 0:13:08.840 and a focus after what was a strong weekend for 0:13:08.880 --> 0:13:12.880 e commerce sales, travel Tuesday is now underway and when 0:13:12.880 --> 0:13:14.559 we go up to the skies with Tom White of 0:13:14.640 --> 0:13:18.120 DA Davidson. So the hot categories to spend over the weekend, 0:13:18.120 --> 0:13:21.840 we're like consumer electronics and hot wheels, totally rad Do 0:13:21.880 --> 0:13:26.800 you expect to see the same spend at elevated levels 0:13:26.840 --> 0:13:30.000 gains from last year on travel, be it flights, be 0:13:30.120 --> 0:13:31.440 it bit accommodations. 0:13:32.480 --> 0:13:33.800 Yeah, first off, thanks for having me. 0:13:33.880 --> 0:13:35.960 Yeah, look, we're a few you know, we're monitoring the 0:13:35.960 --> 0:13:39.000 consumer closely, but so far it looks quite good. It 0:13:39.000 --> 0:13:41.760 looks like underlying travel the men is still holding up 0:13:41.800 --> 0:13:43.840 quite well based on a number of the data points 0:13:43.840 --> 0:13:47.679 that we track, certainly the big public OTAs online travel 0:13:47.679 --> 0:13:50.360 agencies that we cover all that pretty encouraging things to 0:13:50.400 --> 0:13:53.560 say about how kind of fourth quarter and early twenty 0:13:53.600 --> 0:13:55.920 twenty four travel was shaping up. But even some of 0:13:55.920 --> 0:13:58.600 the third party data, like for example, the TSA checkpoint 0:13:58.679 --> 0:14:02.079 data coded date, so far on the fourth quarter. 0:14:02.120 --> 0:14:03.679 We're up about ten percent on a year of a 0:14:03.760 --> 0:14:04.400 year basis. 0:14:04.480 --> 0:14:06.880 A third quarter was up about eleven percent, so pretty 0:14:06.960 --> 0:14:10.040 kind of stable growth trends. There a handful of other 0:14:10.080 --> 0:14:13.600 surveys from companies like Deloitte, All Point to you know, 0:14:13.679 --> 0:14:17.600 people looking to travel more. You know, this Thanksgiving through 0:14:17.720 --> 0:14:21.080 the mid January across all age groups, all demographics. 0:14:21.120 --> 0:14:22.840 Really so so far, so good. 0:14:22.920 --> 0:14:26.600 But you know, obviously I think Idrid Straits and the 0:14:26.600 --> 0:14:29.280 broader macro a somebody to keep an eye. 0:14:29.560 --> 0:14:30.520 Well that that's a good point. 0:14:30.560 --> 0:14:33.600 So you had that bite around the role that credit 0:14:33.640 --> 0:14:36.400 cards are playing with the consumer. By now pay later 0:14:37.000 --> 0:14:40.560 is how consumers spend on travel. Concern kind of for 0:14:40.600 --> 0:14:43.360 a long term outlook on that market look. 0:14:43.200 --> 0:14:45.560 Certainly for a long term out look, I mean in 0:14:45.600 --> 0:14:48.560 the short term out look. You know, if people are 0:14:49.000 --> 0:14:52.360 stretching themselves a little bit because they still feel the 0:14:52.760 --> 0:14:55.240 lingering effects of being cooped up during COVID and they 0:14:55.240 --> 0:14:59.440 want to prioritize experiences and travel, you know, that'll obviously 0:14:59.480 --> 0:15:01.480 be positive for the online. 0:15:01.160 --> 0:15:02.600 Travel agencies that we cover. 0:15:03.000 --> 0:15:06.200 A longer term though, we need a generally healthy consumer 0:15:06.560 --> 0:15:09.200 who's got discretionary income to spend. 0:15:09.280 --> 0:15:11.440 So I think an easing. 0:15:11.080 --> 0:15:13.280 Of rates or at least the stability and rates, and 0:15:13.840 --> 0:15:16.240 you know kind of maybe going into next year would 0:15:16.320 --> 0:15:18.280 you know, be a further kind of positive catalyst for 0:15:18.640 --> 0:15:19.240 travel spending. 0:15:20.160 --> 0:15:22.720 Okay, Tom White of DA Davidson with the travel outlook 0:15:22.960 --> 0:15:24.400 on this Travel Tuesday. 0:15:24.440 --> 0:15:26.560 Thank you, Caroline. What have you got on the ground. 0:15:26.840 --> 0:15:28.640 Well, we're going to go to the consumer a little 0:15:28.680 --> 0:15:31.200 bit more, but the non discretionary type. We want to 0:15:31.240 --> 0:15:33.560 be talking a little bit more about the grocery world after. 0:15:33.600 --> 0:15:36.400 In fact, Amazon just reported for Black Friday in Cyber Monday. 0:15:36.840 --> 0:15:38.800 Well all those hot wheels you were just talking about. 0:15:38.800 --> 0:15:41.080 It broke records this year, customers around the world purchasing 0:15:41.120 --> 0:15:43.640 over one billion items. But let's go into the grocery 0:15:43.640 --> 0:15:46.040 side of the equation. Meredith Bunches with us, Amazon's director 0:15:46.040 --> 0:15:49.520 of worldwide grocery stores. And were the consumers showing up 0:15:49.680 --> 0:15:51.760 in your part of the business as well, Meredith. 0:15:52.600 --> 0:15:53.280 Yes, they were. 0:15:53.360 --> 0:15:56.920 As you mentioned, Amazon had record Black Friday sales, and 0:15:56.960 --> 0:15:59.640 we had great success in the grocery space as well, 0:16:00.040 --> 0:16:03.240 lots of customers shopping online and in store across Full 0:16:03.280 --> 0:16:07.200 Foods and Amazon Fresh, especially taking advantage of our great 0:16:07.200 --> 0:16:09.280 deal that we had on turkey at just forty nine 0:16:09.280 --> 0:16:11.040 cents a pound, which was an amazing deal. 0:16:11.160 --> 0:16:14.000 So yes, a great holiday all around. 0:16:14.480 --> 0:16:17.280 What's interesting, of course, because you do have from Whole 0:16:17.280 --> 0:16:21.160 Foods and more, perhaps luxurious expenditure that you might do 0:16:21.200 --> 0:16:23.520 at a grocery department rather than you go to Fresh. 0:16:23.520 --> 0:16:26.800 And Amazon Essentials basically tickle the boxes on a price perspective, 0:16:26.800 --> 0:16:28.720 and I'm interested as to whether or not you're managing 0:16:28.720 --> 0:16:30.440 to have the one shopping cat that much a little 0:16:30.440 --> 0:16:32.040 bit more for people who want to splash out at 0:16:32.080 --> 0:16:35.080 Whole Foods but also get their basics from say Fresh 0:16:35.080 --> 0:16:35.680 for example. 0:16:36.880 --> 0:16:37.960 Yes, absolutely. 0:16:38.160 --> 0:16:41.560 We know that customers have different needs and our goal 0:16:41.720 --> 0:16:45.240 is to meet those needs, whether it's through Whole Foods 0:16:45.240 --> 0:16:48.560 Market or through Amazon Fresh. We also have Amazon Go, 0:16:48.880 --> 0:16:52.240 and each one of those banners provides our customers with 0:16:52.400 --> 0:16:55.040 a different set of groceries. Whether they want to buy 0:16:55.080 --> 0:16:58.320 their sustainable seafood from Whole Foods Market, and then they 0:16:58.360 --> 0:17:02.359 want to get their center store Pringles or Coca Cola 0:17:02.520 --> 0:17:05.840 or just really basic cooking goods at Amazon Fresh, and 0:17:05.880 --> 0:17:07.479 then they want to get some fresh food to go 0:17:07.560 --> 0:17:12.240 from Amazon Go. We really see our holistic grocery offering 0:17:12.359 --> 0:17:14.399 as a way to solve our customer's needs because we 0:17:14.480 --> 0:17:17.600 know that they're shopping across four to five different retailers today. 0:17:17.440 --> 0:17:20.640 Ten and so we think, what if we can yeah, 0:17:20.680 --> 0:17:21.480 go ahead, can I. 0:17:21.400 --> 0:17:26.119 Get it in one delivery yet. 0:17:24.400 --> 0:17:26.720 Not yet, but we are working on that because we 0:17:26.880 --> 0:17:30.320 have everything that the customer wants. We've got the tens 0:17:30.320 --> 0:17:33.040 of thousands of shelf stable items on Amazon dot Com, 0:17:33.119 --> 0:17:35.840 the Whole Foods Market, the Amazon Fresh, the Amazon Go 0:17:36.400 --> 0:17:38.320 and we want to make it as easy as possible 0:17:38.359 --> 0:17:40.760 for customers to get all of that in one shopping 0:17:40.760 --> 0:17:43.040 cart and one grocery delivery. And that is what we 0:17:43.080 --> 0:17:46.560 are working towards because simplifying that relationship where they can 0:17:46.600 --> 0:17:51.400 get everything from one singular relationship with Amazon is really 0:17:51.440 --> 0:17:53.439 how we think we can solve for customers in the 0:17:53.480 --> 0:17:54.200 grocery space. 0:17:54.400 --> 0:17:57.440 And if you look at producing stools of course as well, Meredith, 0:17:57.440 --> 0:17:59.760 you've been bringing in as we are, but do not 0:17:59.800 --> 0:18:02.160 se coffee, but also some of the no more technology 0:18:02.240 --> 0:18:05.199 savvy ways and perhaps just walking out for example. But 0:18:05.520 --> 0:18:08.679 how is that squaring with actually the expansion of bricks 0:18:08.680 --> 0:18:12.159 and water. Are you still rolling out more stores? I 0:18:12.200 --> 0:18:14.199 think it was about one hundred of Whole Food that 0:18:14.280 --> 0:18:15.639 you wanted over the next few years. 0:18:16.840 --> 0:18:18.720 Yes, we are going to continue to open our Whole 0:18:18.720 --> 0:18:21.960 Food's market stores, and we'll do so selectively with Amazon 0:18:22.000 --> 0:18:24.199 Fresh when we see the results that we like and 0:18:24.240 --> 0:18:27.480 as you mentioned, we have relaunched several Amazon Fresh stores 0:18:27.520 --> 0:18:30.840 in the Chicago area in the Los Angeles area. In 0:18:30.880 --> 0:18:33.520 those stores, we've added thousands of new products, We've lowered 0:18:33.560 --> 0:18:35.359 prices across thousands of products. 0:18:35.560 --> 0:18:37.480 We've added new checkout options. 0:18:37.080 --> 0:18:39.440 So customers can use just walk out, they can use 0:18:39.440 --> 0:18:41.879 our dash cart, they can use self checkout, really giving 0:18:41.920 --> 0:18:44.040 them the power to choose how they want to check out. 0:18:44.320 --> 0:18:45.560 Do you also mentioned we've. 0:18:45.359 --> 0:18:48.199 Got Krispy Kreme integrated in the stores with coffee and donuts, 0:18:48.240 --> 0:18:52.160 which makes everybody's shopping trip a lot more delightful. And 0:18:52.560 --> 0:18:55.080 Prime customers can also get an additional ten percent off 0:18:55.080 --> 0:18:57.200 of those stores. And we're really happy with the results 0:18:57.200 --> 0:18:59.439 that we're seeing, and we're going to continue to iterate 0:18:59.480 --> 0:19:02.040 and continue to invent on behalf of the customer and 0:19:02.320 --> 0:19:04.960 look for those results that tell us where we want 0:19:05.000 --> 0:19:05.159 to be. 0:19:05.560 --> 0:19:08.760 What was interesting with the whole refresh refocus that was 0:19:08.800 --> 0:19:12.480 really announced in August was those prime account holders and 0:19:12.560 --> 0:19:15.040 non prime account holders. You started to say, look, you 0:19:15.520 --> 0:19:17.960 combine with us even if you don't have a prime subscription, 0:19:18.280 --> 0:19:21.160 how is that going? How many numbers of people are 0:19:21.359 --> 0:19:24.480 using your groceries when they're not having a Prime subscription. 0:19:25.680 --> 0:19:28.600 Yeah, we were really excited just a few weeks ago 0:19:28.680 --> 0:19:32.119 to launch grocery delivery for customers without a Prime membership 0:19:32.160 --> 0:19:35.160 from Amazon Fresh. Previously, customers needed to be a Prime 0:19:35.200 --> 0:19:37.840 Member in order to access our grocery delivery, and we 0:19:37.920 --> 0:19:42.320 really wanted to democratize our affordable, fast, reliable delivery for everybody, 0:19:42.400 --> 0:19:44.879 whether you're a Prime member or not. That being said, 0:19:44.920 --> 0:19:47.200 being a Prime member still gives you an additional ten 0:19:47.240 --> 0:19:49.679 percent off thousands of items when you shop in store, 0:19:50.000 --> 0:19:52.160 as well as lower delivery. 0:19:51.760 --> 0:19:53.199 Fees for shopping online. 0:19:53.320 --> 0:19:56.320 We're really pleased to see the number of customers that 0:19:56.400 --> 0:20:00.159 are not Prime Members shopping our grocery delivery service we 0:20:00.200 --> 0:20:01.240 continue to roll out. 0:20:01.440 --> 0:20:02.800 We hope god will continue to grow. 0:20:03.280 --> 0:20:05.879 Meredith Branch, thank you so much giving us the insight 0:20:05.960 --> 0:20:07.680 on Amazon and all the worlds of groceries. 0:20:08.040 --> 0:20:11.080 And we we've got coming up yep, A big focus 0:20:11.160 --> 0:20:14.879 on China tech presidents using ping visiting Shanghai today. A 0:20:14.920 --> 0:20:18.560 lot of stories in the news flow. This is Bloomberg Technology. 0:20:29.400 --> 0:20:31.560 Welcome back to Bluemo Technology. I'm Caroline Hid in New 0:20:31.600 --> 0:20:32.440 York and. 0:20:32.440 --> 0:20:34.439