Speaker 1: From the heart of where innovation, money and power collive
Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with
Speaker 1: Emily Jay. I'm Emily checking San Francisco, and this is
Speaker 1: Bloomberg Technology coming up the next hour, Tech stops plunge,
Speaker 1: Amazon shares having their worst day since two thousand and six,
Speaker 1: the nasdack sinking. We will point pinpoint the biggest pain
Speaker 1: points for big tech going forward. Plus e Lad Musk
Speaker 1: sells eight and a half billion dollars worth of Tesla
Speaker 1: shares to pay for Twitter, but he's still got to
Speaker 1: come up with billions more. Tesla shares are down since
Speaker 1: he disclosed his Twitter steak, and Twitter shares are trading
Speaker 1: lower than is offered price. Can Musk make the tricky
Speaker 1: math add up? And over to Musk's other company. We
Speaker 1: are watching this SpaceX rocket about to take off from
Speaker 1: Cape Canaveral. It is poised to make history, marking the
Speaker 1: fastest turnaround time for a refurbished rocket ever. We will
Speaker 1: bring it all to you live meantime for tech investors,
Speaker 1: worst start to the year in two decades. If you
Speaker 1: take a look at the bigger picture, As Taylor mentioned,
Speaker 1: the NAZAC one hundred hammered this year, wiping out more
Speaker 1: than one point eight trillion dollars in value in April alone.
Speaker 1: How much more volatility will the tech sector? See Mark
Speaker 1: Mheney of ever Core with us now to discuss Mark,
Speaker 1: how much more? How much more are we going to see? Well,
Speaker 1: we still have FED decisions coming up this next week week,
Speaker 1: and then one shoot that has not yet Followen and
Speaker 1: Taylor just started to tease this out, is whether the
Speaker 1: consumer really weakens. Look, everything's been thrown against UH tech
Speaker 1: stocks so far except for a global recession. But we
Speaker 1: know we've had decades high inflation rates, we've got surgy
Speaker 1: interest rates, we've had um We've had a war breakout
Speaker 1: in Europe that has dampened at least some demand so far,
Speaker 1: just dampen. It hasn't crusted yet, has dampened it. And
Speaker 1: then you've got supply chain issues out of out of China,
Speaker 1: and so it's hit Apple, it's hit Amazon, it's at Google, Facebook,
Speaker 1: you know, Microsoft, even all of the major tech stocks.
Speaker 1: I don't think it abates quickly. It does abate unless
Speaker 1: we get another shoot to drop with the consumer really
Speaker 1: falling off a clip. We haven't seen evidence of that
Speaker 1: yet I hope it doesn't happen. Now. You cover so
Speaker 1: many big tech companies, Amazon, Alphabet, Meta, Twitter, Netflix, when
Speaker 1: you look at the broader landscape, what are the most
Speaker 1: alarming pain points that you see? Well, I also when
Speaker 1: I want to put this in context, Look, this is
Speaker 1: the third bear market that you and I've gone through
Speaker 1: just in the last five years. We had one in
Speaker 1: eighteen of course during COVID the beginning of COVID, and
Speaker 1: we have one now. But you know we've had I
Speaker 1: don't know, I've lived through seven or eight of these.
Speaker 1: Uh So they almost all are fundamentally driven and there
Speaker 1: are these confluence of events coming up. I think of
Speaker 1: all those stocks that you mentioned, probably the one that
Speaker 1: most fundamentally surprised me was Netflix that just hit a wall.
Speaker 1: And I think that was because they just didn't have
Speaker 1: a plan B or a plan C at least not
Speaker 1: ready to go and uh and they sort of hit
Speaker 1: a little bit of market maturation and lots of competition.
Speaker 1: I don't think that's the case actually with Facebook or
Speaker 1: Google or Amazon. I think these are dips that you
Speaker 1: as a growth investor. Me as a growth investor, I
Speaker 1: want to be buying. I call these d h q
Speaker 1: s dislocated high quality opportunities. I know everything is being
Speaker 1: thrown against Amazon now. I mean this is This is
Speaker 1: about as big of a macro place you can find.
Speaker 1: They got one point six million employees. So if wage
Speaker 1: inflation is going up and shipping inflation is going up
Speaker 1: and fuel inflation is going up, if all that happens,
Speaker 1: Amazon is definitely negatively impacted. I just don't think this
Speaker 1: is a structural change in Amazon's business model, and I
Speaker 1: think they'll start scaling through it, and you want to
Speaker 1: be buying them when this is. I mean, this is
Speaker 1: about as bad as it gets, and all of the
Speaker 1: stock is gonna work as things get less less worse
Speaker 1: going forwards, and I think they will barring the global recession.
Speaker 1: Is Netflix going to be able to peel itself off
Speaker 1: the wall and get some momentum back. Yes, at some
Speaker 1: point I'm sure they will be able to. To me,
Speaker 1: this is like if you remember Emily price Line, which
Speaker 1: turned into Booking dot Com. There was a wonderful stock
Speaker 1: for a decade like Netflix was, and then it went
Speaker 1: x premium growth. They stopped growing above and they just
Speaker 1: kind of did this ten percent revenue growth, and they
Speaker 1: traded fine in line with the market, but they didn't outperform.
Speaker 1: And I sort of think the same thing happens here
Speaker 1: with Netflix. And the challenge with Netflix is it went
Speaker 1: into its kind of an exited, you know, premium growth
Speaker 1: from a very high multiple, so you had this wicked
Speaker 1: correction down. Now you've got this thing trading at like
Speaker 1: fifteen sixteen seventeen times earnings. That's about right for an
Speaker 1: asset like this, So I think it kind of hugs
Speaker 1: the market for the foreseeable future. I you know, I
Speaker 1: downgrade the stock earlier this year, and uh, this is
Speaker 1: my history tells me this stays that you stand on
Speaker 1: the sidelines on the name like this for at least
Speaker 1: a year. Meantime, got to talk about Twitter Musk trying
Speaker 1: to buy to sell more shares to get the money
Speaker 1: he needs to do this deal. Twitter earnings, though, you know,
Speaker 1: didn't look great. Do you think he's really committed to
Speaker 1: owning and running a money losing asset or or does
Speaker 1: he want to turn this into a profitable business? And
Speaker 1: can he get the deal done even as Tesla shares
Speaker 1: continue to decline? Well, um, I think he can get
Speaker 1: the deal done. I think he's got enough personal wealth
Speaker 1: that he can he can get the deal done. It
Speaker 1: may not be as attractive as he first thought. The
Speaker 1: second thing is, I don't know whether he early wants
Speaker 1: wants to run it as a profitable enterprise. Is public
Speaker 1: statements indicate that he hasn't. That said that this person
Speaker 1: is an enormously successful entrepreneur. The difference here, however, Emily,
Speaker 1: is that he didn't build this company from the ground up.
Speaker 1: He's acquiring an asset and so then you go through it.
Speaker 1: I mean, you do in that big M and a deal,
Speaker 1: you're going to have to figure out cultures. Uh. You know,
Speaker 1: this is a very different business model than he's run before.
Speaker 1: I know he's extremely intimately knowledgeable about how Twitter works
Speaker 1: as a user, but you know, there's a side of
Speaker 1: the business here. I mean, the people who pay the
Speaker 1: bills to Twitter are advertisers, and that's a very different mindset,
Speaker 1: very different set of skills. And I don't know what
Speaker 1: Musk wants to do about that. If he doesn't care
Speaker 1: about the advertisers, they're they're not gonna care about him,
Speaker 1: and you're gonna have ad dollars decline. And by the way,
Speaker 1: that that's your cash flow. So I I think the
Speaker 1: operational challenge here is gonna be greater. And I don't
Speaker 1: know whether that bother bothers must or not, but it's
Speaker 1: it's gonna if it's if it's a financial imparative for
Speaker 1: him to get the this is gonna be a bigger
Speaker 1: challenge for him. If he really wants to run the
Speaker 1: business properly, this is gonna be this is gonna be
Speaker 1: a challenge for him. And quickly twitters are still trading
Speaker 1: below his offer price. Do you think investors don't think
Speaker 1: he can get the deal done? I think there's always
Speaker 1: a little bit of a gap in these M and
Speaker 1: A deals. You know, this deal is not going to
Speaker 1: probably close for a couple of months. Something could still
Speaker 1: come up regulatory wise. Uh, so there's always gonna be
Speaker 1: a little bit of a discount. I don't see it
Speaker 1: as that glaring the gap here. So yeah, I'm not
Speaker 1: surprised that there's a gap. I would expect it to
Speaker 1: narrow as you get closer to whenever this thing is
Speaker 1: supposed to close. I think the thing is going to
Speaker 1: close pretty quickly in the next couple of months, though
Speaker 1: next month or two. Interesting why quickly. I don't know
Speaker 1: what stops it. I mean, there's no other bidder here,
Speaker 1: so it's only regulatory approval. The board has agreed to this.
Speaker 1: I think the largest shareholders have signed up. I don't
Speaker 1: know that for a fact, but I'm guessing that that's
Speaker 1: the last series of events that caused the board to
Speaker 1: say okay. Deals done because they heard from their largest
Speaker 1: shareholders that they want this. This deal completed, so there's
Speaker 1: nothing to really stop it except for the regulatory approval process. Interesting.
Speaker 1: Mark Mhoney of aver Cores always going to have you
Speaker 1: happy Friday, Mark, thanks for joining us. Elon Mosk sold
Speaker 1: an additional four and a half billion dollars worth of
Speaker 1: Tesla stock, according to new regulatory filings. That makes his
Speaker 1: total sales this week eight and a half billion dollars,
Speaker 1: bringing him one step closer to making his deal to
Speaker 1: buy Twitter a reality. Mosque has already discussed some of
Speaker 1: the changes he'd make to Twitter on Twitter, most notably
Speaker 1: his now pin tweet about free speech and censorship. There's
Speaker 1: been some excitement and a lot of concerns about what
Speaker 1: Twitter might look like under Musk, especially when it comes
Speaker 1: to changing Twitter's moderation policies. My next guest actually helped
Speaker 1: Twitter's Trust and Safety Council shape those policies. And I'm
Speaker 1: joined now by Brianna Wou, executive director Rebellion Pack, one
Speaker 1: time congressional candidate and a woman who unfortunately knows a
Speaker 1: thing or two about harassment. And Brianna, I just want
Speaker 1: to remind our viewers that not only did you become
Speaker 1: a target of vicious trolls on Twitter as a result
Speaker 1: of gamer Gate, your harassers came after you in person
Speaker 1: and tried to, you know, physically harm you. In the
Speaker 1: wake of that, you help Twitter shape its moderation policies.
Speaker 1: How do you feel about handing that over now to
Speaker 1: Elon Musk Well, I'm obviously very very concerned. Um, you know,
Speaker 1: something I talked about two NBC News this week was
Speaker 1: kind of history of Twitter's moderation policies improving in the
Speaker 1: wake of gamer Game. I talked to Del Harvey and
Speaker 1: a lot of other people at Twitter from really extensively
Speaker 1: from about until about eighteen trying to basically fix some
Speaker 1: of the things that went wrong at Twitter, and something
Speaker 1: I really was stressed everyone watching you on Bloomberg is
Speaker 1: ultimately this was a u X problem. We were trying
Speaker 1: to solve a user experience problem. This was not political,
Speaker 1: It was not a left versus right screaming match. This
Speaker 1: was people on Twitter are having a bad user experience
Speaker 1: and we need to fix it. So I'm really worried
Speaker 1: that all the progress we made to basically let a
Speaker 1: lot of people use this service and not get death threats,
Speaker 1: rape threats, you know, their their personal information published. I'm
Speaker 1: extremely concerned that's going to take a step backwards. And
Speaker 1: because this is Bloomberg, I think ultimately that's going to
Speaker 1: really affect Twitter's stock price, in their profitability. If you
Speaker 1: could give Unmusk some advice, what would it be. I
Speaker 1: think the main thing I would say is listen to
Speaker 1: the professionals on the trust and Safety team. I cannot
Speaker 1: emphasize to you enough. These are data driven professionals. They're
Speaker 1: not ideologues. They sit there and they comb through literally
Speaker 1: large freams of data every single day trying to figure
Speaker 1: out how to make the product better, what the shortcomings are.
Speaker 1: It's almost like cyber warfare in a sense, you know,
Speaker 1: where you've trolls poking at the defenses of Twitter's trust
Speaker 1: and safety policies all day and trying to figure out
Speaker 1: how to get around it. I would say listen to
Speaker 1: those professionals. What concerns me is, judging from miss tweets,
Speaker 1: it seems like he's coming in with basically a political,
Speaker 1: uh political crusade that he's trying to bring to the platform,
Speaker 1: rather than just trying to empower his professionals that are
Speaker 1: trying to solve this from a non political point of view. Now,
Speaker 1: Elon Musk is inarguably an innovator and has you know,
Speaker 1: brought some of the most difficult ideas in history to fruition.
Speaker 1: Why shouldn't we think he could actually make Twitter better? Well,
Speaker 1: you know, if we were talking about making a tech product,
Speaker 1: I think I would have a lot more faith in him.
Speaker 1: I think it's also worth saying Elon Musk is also
Speaker 1: someone that makes really big promises that don't seem to
Speaker 1: go anywhere if you listen to him. We're going to
Speaker 1: have uh, you know, Optimius robots, these fully autonomous robots
Speaker 1: that can act with artificial intelligence, walk around on two legs.
Speaker 1: Those will be out I believe next year. According to
Speaker 1: his public statements, uh, he said Tesla will be a
Speaker 1: fully self drivable car every single year for the last
Speaker 1: six years. I think there's a real credibility gap when
Speaker 1: it comes to his very large pronouncements on this UH
Speaker 1: in something that's I really want to stress Emily Ultimately,
Speaker 1: most of the policies that changed at Twitter happened because
Speaker 1: the Twitter leadership was invested in it. You know, from
Speaker 1: to about they were very incentivized, not just you know,
Speaker 1: from users, but from the stock price to address harassment.
Speaker 1: If you remember, they tried to sell themselves to UH
Speaker 1: I believe it was ABC and Distinc. At one point
Speaker 1: Twitter did, and the deal fell through in part because
Speaker 1: of the congeneral harassment on the platform. So you know,
Speaker 1: ultimately this isn't just a user safety issue, it's a
Speaker 1: stock price issue. Now. Jack Dorsey just posted a long
Speaker 1: Twitter thread taking responsibility for mistakes he has, you know,
Speaker 1: talked a little bit about the handling of the New
Speaker 1: York Post article mentioning Hunter Biden. But of course there
Speaker 1: are many many other issues um that Elon Musk seems
Speaker 1: to be taking issue with. Jack says a transparent system,
Speaker 1: both in policy and operations, is the right way to
Speaker 1: earn trust, whether it's owned by a company or an
Speaker 1: open protocol doesn't matter as much as deliberately deciding to
Speaker 1: be open about every decision and why it was made.
Speaker 1: It is not easy to do, but it must happen.
Speaker 1: What do you what do you think he means by that?
Speaker 1: And is it really possible? I don't know how possible
Speaker 1: it is, but I think it's a good ideal to
Speaker 1: strive for. I think a lot of the misconceptions about
Speaker 1: the trust and safety policy happen because there is this, uh,
Speaker 1: this this, then this veil between what happens on that
Speaker 1: team in the public. I find it very notable of
Speaker 1: my work with them. I was really encouraged to not
Speaker 1: speak about it ever, Um. I only spoke about it
Speaker 1: this week because I felt the stakes were so high
Speaker 1: and that it was worth worth kind of talking about
Speaker 1: my experiences on that team because of these this misconception
Speaker 1: that you know, it's a bunch of democratic people behind
Speaker 1: the scenes trying to silence conservatives. Absolutely not my experience
Speaker 1: at all. Um. I think that if we had these
Speaker 1: policies applied more transparently, I think that that would be
Speaker 1: good for getting the trust of all users. You know,
Speaker 1: what if find is so interesting, Emily is from my perception. Um,
Speaker 1: if you look at Twitter and their ability to solve
Speaker 1: address things that we all agree should not be on
Speaker 1: that platform, things like death threat and rape threats, I
Speaker 1: think they do a much better job than many of
Speaker 1: their competitors. They certainly do better than Facebook and read it,
Speaker 1: but they've never really gotten the public credit. I feel
Speaker 1: that they deserved for that. I think that being more
Speaker 1: open with that would definitely help it. I would say
Speaker 1: in my own experience as a user, Twitter's moderation has
Speaker 1: gotten better, at least from my perspective and the tweets
Speaker 1: that I personally see. You know, I think the folks
Speaker 1: who are really excited about Elon's vision seem to think
Speaker 1: that Twitter has made a lot of political decisions over
Speaker 1: the last several years. Even even Jack himself says, you know,
Speaker 1: he generally isn't a fan of band banning someone, and
Speaker 1: Twitter is the platform that banned President Trump permanently. Do
Speaker 1: you think the decisions that Twitter has made are political
Speaker 1: or were politicized? You know, when I come on your show,
Speaker 1: I try not to make things partisan. But since you asked,
Speaker 1: I'll tell you my honest impression. In gamer Gate, I
Speaker 1: felt that these policies were the all right versus normal people. Right,
Speaker 1: it was the trolls versus just professionals trying to get
Speaker 1: their job done. I think unfortunately, since we have seen
Speaker 1: these issues become partisan, as some people are kind of
Speaker 1: becoming their worst selves online, so I think unfortunately this
Speaker 1: has become another left versus right screaming match. I can't
Speaker 1: think of any problem in America that's gotten better on
Speaker 1: its become a partisan screaming match rather than a problem
Speaker 1: to solve. Brianna Wu Rebellion Pack executive director, UM, longtime
Speaker 1: crusader for better moderation policies. Thank you Apple warning it
Speaker 1: could lose billions this quarter due to supply shortages, specifically
Speaker 1: tied to China and it's strict lockdown policy. I'm joined
Speaker 1: now by Bloomberg's Mark German, who of course covers all
Speaker 1: things Apple for us. So Mark, just exactly how bad
Speaker 1: did Apple say these supply chain issues are going to
Speaker 1: get and is it all because of COVID in China? Well?
Speaker 1: Pretty bad, right, They're guiding between four billion and eight billion.
Speaker 1: And if you listen to the call, it seemed like
Speaker 1: Tim Cook and look at my Austry the CFO, they
Speaker 1: really weren't sure how big of an impact it really
Speaker 1: would be, right, That's why they gave that big four
Speaker 1: to eight billion range. Now. They've been giving these ranges
Speaker 1: of supply chain impact now for a few quarters, but
Speaker 1: this up to eight billion dollar marker, that's the biggest one.
Speaker 1: Now analysts still think that Apple could beat in terms
Speaker 1: of year over year, right, But we'll see how ultimately
Speaker 1: Apple shakes out. I think it's a combination of the
Speaker 1: supply chain in China, which definitely has a long way
Speaker 1: to go in terms of the overall strategy final assembly.
Speaker 1: There's obviously a bottleneck in recent years. I'm sure we'll
Speaker 1: get more into that. I also think it has to
Speaker 1: do with global economic conditions, the war Ukraine, inflation, people
Speaker 1: trying to hold onto their money, and also in terms
Speaker 1: of you know, products in some sense, right, like people
Speaker 1: are anticipating big iPhone, fourteen, big iPad and Apple Watch
Speaker 1: changes later in the year, as Apple always does, so
Speaker 1: people could be holding onto that too as well. Q
Speaker 1: three is traditionally one of Apple's more soft quarters. How
Speaker 1: do you think investors are going to handle this given that,
Speaker 1: you know, Apple's learnings generally were pretty good if you
Speaker 1: look at how dismally bad the results have been from
Speaker 1: other tech companies like Amazon. Yeah, I think investors are
Speaker 1: probably going to wait to really, you know, make their
Speaker 1: long term decisions on Apple until the Q three results, right.
Speaker 1: I think they want to see how things shake out.
Speaker 1: You know, Tim Cook and Luca were they were vague
Speaker 1: enough to indicate, you know what, maybe it won't be
Speaker 1: eight billion, maybe less than four billion, Right, That's why
Speaker 1: they give that being ranged. They didn't really seem sure.
Speaker 1: So if Apple is not entirely sure, I'm not sure
Speaker 1: investors and analysts can be entirely sure too. So I
Speaker 1: think they're gonna wait until late July to see how
Speaker 1: things really shake out. Obviously, there is a lot of
Speaker 1: reason to be optimistic about Apple, but an eight billion
Speaker 1: dollar hit yet again on the supply chain indicates that
Speaker 1: Apple really needs to be making some tweaks to that
Speaker 1: overall strategy. There and Tim Cook, the architect of the
Speaker 1: Apple supply chain over the last twenty years and change,
Speaker 1: he was again defensive about the supply chain strategy. And
Speaker 1: so we'll see, you know, if Apple does make those
Speaker 1: changes that they clearly need to make, And what are
Speaker 1: the products that you are most excited about coming year
Speaker 1: September quickly, Yeah, I'm particularly excited about the Apple Watch, right.
Speaker 1: I think there's gonna be three new models this year,
Speaker 1: including a new ruggedized model maybe with some satellite connectivity
Speaker 1: features so that will be pretty nifty, and new iPad
Speaker 1: pro and also the a R headset at some point.
Speaker 1: All right, Mark German, who of course covers Apple for US,
Speaker 1: will be on the lookout for all of those things.
Speaker 1: And now we're about a minute and a half to
Speaker 1: launch of that SpaceX Falcon nine rocket carrying fifty three
Speaker 1: Starlink satellites. We're looking at a live look there of
Speaker 1: Cape Canaveral Space Force Station in Florida taking off as
Speaker 1: planned at this point at five twenty seven pm Eastern time.
Speaker 1: I want to bring in Bloomberg's Justin Bachman, who covers
Speaker 1: the space industry for us. This would be a history
Speaker 1: making mission, justin correct, and that this would be the
Speaker 1: fastest turnaround time for a refurbished rocket ever. That's true. Yeah,
Speaker 1: they have shaved their previous record of twenty seven days
Speaker 1: down in twenty one days. So it is a record.
Speaker 1: When you put it like that, it sounds pretty well, um,
Speaker 1: you know, what's curious is we don't know what their
Speaker 1: what their target is. It's it's interesting to see if
Speaker 1: you know, this becomes more of a two week or
Speaker 1: even a one week turnaround. Um for when they you know,
Speaker 1: land these rockets and they're ready to fly them again. Um,
Speaker 1: and I think they're learning. It's it's one of those
Speaker 1: open questions. How many times can I falcondine fly? And
Speaker 1: how quickly can you can you get the refurbishment? How
Speaker 1: much do you need to do versus what you can?
Speaker 1: Justin here we go five seconds to go two one
Speaker 1: pigniction on sorry pie vehicles catching count range and when
Speaker 1: D chamber pressure is nominal. Yes, Falcon nine has successfully
Speaker 1: lifted off from Space Launch Complex Party carrying our fifty
Speaker 1: three Sterlink satellites. Now although a liftoff, gravity is pulling
Speaker 1: the vehicle straight right, the rocket is on its way
Speaker 1: twenty seven days after its last trip. This is the
Speaker 1: sixth flight ever for this particular rocket, now carrying fifty
Speaker 1: three satellites. Starlink satellites into orbit. Are Justin Bachman, who
Speaker 1: covers the space industry for US now justin how significant
Speaker 1: is this milestone? I think it's fairly significant because you're
Speaker 1: seeing SpaceX learning. They fly a lot, and they learn
Speaker 1: a lot, and you know, one of the questions that
Speaker 1: the company has got to be, what is what is
Speaker 1: the minimal amount that's required to have a safe flight
Speaker 1: for not only our payloads but for customer payloads. UH.
Speaker 1: And the faster you can do that, it's you know,
Speaker 1: a lower's cost. And this is really a business more
Speaker 1: than a novelty. And when you make it a business,
Speaker 1: you're always looking to lower costs and this is an
Speaker 1: important part of it. How quickly can you refurbish it?
Speaker 1: What's the minimum how quickly can you fly? Um? And
Speaker 1: today they're you know, they're taking out pay load that's
Speaker 1: going to contribute to their their constellation and that's more money.
Speaker 1: So it's it's a business that works. And I think
Speaker 1: we're seeing a lot of the on the cost side
Speaker 1: with with these kind of refurbishments. So we're about thirty
Speaker 1: seconds away from the first stage main engine getting cut
Speaker 1: off here, and I'd like to talk a little bit
Speaker 1: about how this fits into the bigger mission of elon
Speaker 1: Musk and SpaceX. UH. The goal is to have these
Speaker 1: taken off as frequently as airplanes take off on Earth.
Speaker 1: Can you paint the picture for us just justin of
Speaker 1: what this future space economy will look like. Yeah, you're
Speaker 1: you're telling about an era not too many years into
Speaker 1: the few sure if you believe a lot of the
Speaker 1: ambitious proposals and optimists, where you do have rockets that
Speaker 1: take off as frequently as airplanes, because there is a
Speaker 1: burgeoning commercial industrial base where people are not only living
Speaker 1: and you know, space tourism is a small part of it,
Speaker 1: but you have companies that are actively manufacturing and doing
Speaker 1: other things with micro gravity UM and using you know,
Speaker 1: a hard vacuum of space is a very useful tool
Speaker 1: in a lot of research. UM. So you have this
Speaker 1: economy where you have a lot of things going to
Speaker 1: and from space, uh, mostly high end, high value products
Speaker 1: and services where you know they're they're using the environment
Speaker 1: for specific reasons. And you know, pharmaceuticals, UM and tissue
Speaker 1: oregan growth is one area that we've we've heard a
Speaker 1: lot about UM. So that's what you know frequent launches are.
Speaker 1: And the Falcon Knight itself is going to be retired, um.
Speaker 1: You know, not not too many years in the future,
Speaker 1: or where you know, if they're starship machine works as
Speaker 1: intended that's going to take over, and that's a much
Speaker 1: larger UM rocket, much more reusable even than this one.
Speaker 1: And so you're gonna see other companies internet space as well,
Speaker 1: and it's gonna be a you know, a market where
Speaker 1: you have frequent launches and we probably won't talk about
Speaker 1: UM each one as a novelty because it becomes so routine.
Speaker 1: And I think that's the goal. UM Nobody is there
Speaker 1: yet and it's not exactly at hand, but I think
Speaker 1: that you're seeing SpaceX build the blocks where that does
Speaker 1: become the ultimate destin stay with us. I want to
Speaker 1: bring Lisa rich In, the co founder and CEO of Explore.
Speaker 1: This is a company that provides space as a service
Speaker 1: by hosting payloads in Earth orbit and beyond. Lisa, this
Speaker 1: rocket flu just twenty one days ago, So that timeline
Speaker 1: is getting tighter and tighter and tighter. You know, you
Speaker 1: know what exactly does this signify in terms of what's
Speaker 1: BaseX and the team there has accomplished, Thank you, Emily.
Speaker 1: What we're seeing is what Justin was referring to, is
Speaker 1: this becoming the business of space that we are able
Speaker 1: to launch frequently and this becomes an enabler for commercial
Speaker 1: space companies to be flying payloads. We're not only flying
Speaker 1: other people's payloads at our company, but we're flying our
Speaker 1: own uh sensors that allow us to provide data and
Speaker 1: bring that data back from space. That enables companies like
Speaker 1: the oil and gas industry, insurance industries, logistics industries that
Speaker 1: can help us with supply chain issues or you know,
Speaker 1: issues with even disaster responsiveness. So all of this. You know,
Speaker 1: we watched the launches and it's exciting to see the launch,
Speaker 1: but we'd love to tell the story of you know,
Speaker 1: the high capability of what's flying and what that means
Speaker 1: back here on Earth. Fifty three satellites going into orbit today,
Speaker 1: and thank you for explaining just how important these satellites are.
Speaker 1: You look up in the sky on any given night
Speaker 1: and you see them, and I wonder, are we getting
Speaker 1: concerned that it's getting a little crowded up there? Uh
Speaker 1: that you know are there? You know, once the space
Speaker 1: economy becomes more rich, are their concerns about about crashes
Speaker 1: and traffic going forward? Well, I'm glad you bring that up,
Speaker 1: because space traffic management is an important part of the process,
Speaker 1: and we're going to be getting better at this by
Speaker 1: improving our regulatory process. So improving the regulatory process actually
Speaker 1: makes us more competitive, and we have folks working very
Speaker 1: hard to make this UM have more ease of use.
Speaker 1: Right right now, when a company flies as spacecraft or
Speaker 1: satellite as we call these satellites, uh, you here, if
Speaker 1: there's a conjunction event or possible collision event, you're notified
Speaker 1: of that. But the company itself isn't necessarily able to
Speaker 1: track it. They're going to be notified. So in the future,
Speaker 1: you know, we're going to have that process. I think
Speaker 1: opening up a little more for awareness that allows us
Speaker 1: to avoid uh these potential collisions. But is it a
Speaker 1: danger now or five years from now, I'm not so
Speaker 1: sure it will be because our systems are all improving
Speaker 1: in the technology and awareness of where satellites are is
Speaker 1: improving all the time. So a space is a big place.
Speaker 1: There's a lot of space and space uh, so I
Speaker 1: don't find that a concern and I don't think a
Speaker 1: lot of satellite operators do necessarily today. So we just
Speaker 1: saw the entry burn process there that is now shut
Speaker 1: down and complete. First stage landing burn uh will start
Speaker 1: at about eight minutes, so we're thirty seconds away from that. US.
Speaker 1: In so far, everything seems to be going as planned.
Speaker 1: Walk us through the rest of this mission given the
Speaker 1: point we're at right now. Yeah, it does seem to
Speaker 1: be going to plan. Um. So what you'll see coming
Speaker 1: up next is as you mentioned, is the the landing
Speaker 1: burn where you know, this needs to slow down. It
Speaker 1: is still you know, supersonic vehicle at this point, and
Speaker 1: it needs to shed a lot of speed still and
Speaker 1: to do that, it's gonna you know, fire a rocket
Speaker 1: engine again, um, vertically coming down. And then after that
Speaker 1: you have the landing bird. Um, you know, complete where
Speaker 1: we've we've seen it, but that you know, that's a
Speaker 1: crucial part of it. And you're seeing that start right
Speaker 1: there for first stage landing burn happening now. Um. You know,
Speaker 1: you know, at this point, what are the things that
Speaker 1: could could could there? It is there, it is coming
Speaker 1: back down. UM. You know, at what point do we
Speaker 1: consider this a success? I think it's a that's when
Speaker 1: they get their satellites deployed, uh and going where they
Speaker 1: want to and you know this this booster is gonna
Speaker 1: fly another day maybe soon. Alright. The goal I would
Speaker 1: guess is sooner than twenty one days, because that's how
Speaker 1: long this booster took to turn around. Lisa, you know
Speaker 1: just how quickly, Uh do you think turnaround can get
Speaker 1: if SpaceX UH does its job right? Yeah? I think
Speaker 1: that they probably can keep shaving time off because that
Speaker 1: is what they do. They're looking for all of these
Speaker 1: incremental ways to keep lowering the turnaround time and increasing
Speaker 1: the usage and the reusability. So for this to have
Speaker 1: been six times to fly, that's phenomenal. You know. They
Speaker 1: have the same mindset as my company explore where we're
Speaker 1: looking at, you know, low cost and high capability, and
Speaker 1: they're proving this out every day by showing us that
Speaker 1: they can turn around in twenty one days. You know,
Speaker 1: I have visited these. They're extraordinary to see upfront. Um
Speaker 1: did the manufacturing capability and refurbishment now, Um, they're working
Speaker 1: like clockwork and I love to see that. It just
Speaker 1: opens up the doors for commercial Those satellites will be
Speaker 1: deployed about an hour into the flight. UH. Justin what's
Speaker 1: next for the SpaceX team now that this booster is
Speaker 1: back on Earth. Uh, they'll be looking for another Starlink
Speaker 1: launch in short order. I think maybe next week if
Speaker 1: I recall correctly, but um, you know, more to build
Speaker 1: out that constellation and and add new customers. They just
Speaker 1: added their first two airline customers in the past week
Speaker 1: with an airline called JSX and Hawaiian Airlines. So they're
Speaker 1: moving into aviation. They want to get into cargo ships
Speaker 1: and other maritime applications. UM, so you're seeing starlink become
Speaker 1: more of a non residential but also a you know,
Speaker 1: commercial business product as well. All right, well, we'll be
Speaker 1: watching for those satellites to successfully deploy, but so far
Speaker 1: it looks like a rave success for this latest SpaceX mission.
Speaker 1: Justin Bachmann for Bloomberg. Lisa Richard, co founder and CEO
Speaker 1: of Explore, thank you both for helping us narrate that journey.
Speaker 1: There's been growing concern that pandemic fuel demand for PCs
Speaker 1: is sputtering. Intel underscoring that coming out with a disappointing
Speaker 1: second quarter forecast. I spoke with Intel CEO Pat Kelsinger
Speaker 1: earlier and asked him why, despite this, he's still optimistic
Speaker 1: about the second half of the year. Take a listen.
Speaker 1: We see continued strowth, strength and growth in our data
Speaker 1: center business, our network and edge business. Very strong first
Speaker 1: quarter and we just see that growing throughout the year.
Speaker 1: We also have our new growth business is an accelerated
Speaker 1: computing and graphics, the new area of foundry and Mobile I.
Speaker 1: All of those had very good quarters and we forecast growth,
Speaker 1: very strong growth for all of those as we go
Speaker 1: into the second half, and then the PC business after
Speaker 1: the inventory correction is done, we expect in Q two.
Speaker 1: We expect the stronger second half. We have a lot
Speaker 1: of visibility into where our O e M inventory levels is,
Speaker 1: and we're also seeing that the strength of our product
Speaker 1: line are old Lake products ramping ahead of schedule, you know,
Speaker 1: the Raptor Lake products already being broadly sampled into the industry.
Speaker 1: And you know, the second half of the year will
Speaker 1: be highlighted by a commercial refresh. You know, we're way
Speaker 1: overdue in the commercial segment for a refresh, and you know,
Speaker 1: with people coming back into the workplace, we see very
Speaker 1: strong outlook for the commercial portion, where our market share
Speaker 1: and our pricing is a stronger. So overall, we're very confident.
Speaker 1: Reaffirmed the second half of the year and the overall number,
Speaker 1: so we're feeling very good about the business and the execution.
Speaker 1: In Q one with a modest beat despite all the turbulence,
Speaker 1: just reinforces our confidence that the execution machine and Intel
Speaker 1: is rebuilding and we have confidence in the rest of
Speaker 1: the year now. I spoke to Apple CEO Tim Cook
Speaker 1: yesterday who said, you know, they're still seeing supply issues
Speaker 1: and they're really almost exclusively related to chips that impacted
Speaker 1: several of their products. They also said on the call
Speaker 1: that supply issues could dent sales as much as eight
Speaker 1: billion dollars in part due to these continuing COVID lockdowns
Speaker 1: in China. You said the shortage will last longer than
Speaker 1: even you thought. How much longer and what more color
Speaker 1: can you give us? Yeah, And I think there's two
Speaker 1: different questions there, Emily. One is some of these near
Speaker 1: term lockdowns and we're starting to see the port open up.
Speaker 1: We're getting some positive news there from China in that regard,
Speaker 1: which is you know, particularly challenging for all of like
Speaker 1: the p C, O, E, M, S and Apple a
Speaker 1: lot of business going through there and a fair amount
Speaker 1: of our business as well. Overall, though, the big story
Speaker 1: is around building up the semiconductor capacity, and we had
Speaker 1: felt like twenty three we'd start to see that equilibrium now,
Speaker 1: and no small part because of some of the equipment shortages,
Speaker 1: the equipment that goes into the fabs that we're building.
Speaker 1: We're seeing those lead times push out substantially, and as
Speaker 1: a result, we expect the overall semiconductor shortage to not
Speaker 1: be resolved until four now as some of those capacities
Speaker 1: come online. Now, I know you're still bullish on the
Speaker 1: PC market, and I'm so curious what makes you think
Speaker 1: it's going to remain strong as we come out of
Speaker 1: the pandemic, given that we're facing inflation and ongoing war,
Speaker 1: a rising gas prices, and more pressure on consumers than
Speaker 1: we've seen in a really long time. Yeah. I think
Speaker 1: there's a variety of things there. And the range of
Speaker 1: the PC market outlooks was pretty wide and now it's
Speaker 1: quite narrow. All of the analysts, all of the O
Speaker 1: E M s, and I think Sacha reaffirmed this on
Speaker 1: his on the Microsoft Arneys call this week. It's a
Speaker 1: structurally larger market now and refresh rates, you know, the
Speaker 1: essential role that it plays and work, learn and play.
Speaker 1: We just see the PC market as a larger market,
Speaker 1: and as I've already emphasized, we're way overdue on a
Speaker 1: commercial refresh Windows eleven key new products like alder Lake
Speaker 1: and Raptor Lake from Intel, and I'd say that three
Speaker 1: and fifty million is about a million PCs a day.
Speaker 1: Everybody's in a pretty tight range around that. I'd say, finally,
Speaker 1: we just have better visibility. We know our product builds.
Speaker 1: Many of the other components like WiFi, Bluetooth are made
Speaker 1: by Intel. You know. Now our position and graphics is
Speaker 1: very strong as well. So all of these taken together,
Speaker 1: we have great insight into what that looks like. Great
Speaker 1: alignment with our customers are O E M S as
Speaker 1: well as the other ecosystem partners. So we feel very
Speaker 1: good that it's you know, about flat market year on year,
Speaker 1: and we're confident that we're gonna be able to execute
Speaker 1: gain share in that market as we did the last
Speaker 1: quarters of last year. So overall, we feel good about
Speaker 1: our business outlook there an Pat Calson are there. Monday,
Speaker 1: Twitter officially accepted Elon Musk's offer to buy the company,
Speaker 1: and it's been a long week since as users, business leaders,
Speaker 1: and politicians alike have debated the pros and the cons.
Speaker 1: My next guest has a very special understanding of the company.
Speaker 1: Ali Roghani is currently the Managing director and CEO of
Speaker 1: the y Combinator Continuity Fund uh and joins us now
Speaker 1: the former c O O and c f O at Twitter.
Speaker 1: So I'm so curious as a former executive what you
Speaker 1: read on this is, Well, it's quite the spectacle. I mean,
Speaker 1: the world richest man swooping in out of nowhere uh
Speaker 1: and taking Twitter private billion dollars. Just the speed of
Speaker 1: the transaction, uh, the ambition uh, and the scale. Um.
Speaker 1: I think I think it caught a lot of people
Speaker 1: off guard. I think it's really and it will be
Speaker 1: an interesting open question where he takes the platform from here.
Speaker 1: I think a lot of folks that have experienced at
Speaker 1: Twitter find some of his public pronouncements about, hey, I
Speaker 1: just want to make the platform, uh, you know, stand
Speaker 1: for more free speech. I think a lot of us
Speaker 1: find it a little bit naive in terms of what
Speaker 1: he said, uh, and they it doesn't reflect kind of
Speaker 1: the complexity of the issue. UM. And I would even
Speaker 1: argue it's not the main issue facing Twitter. Moderation isn't
Speaker 1: I think the main issue. I think the main issue
Speaker 1: facing Twitter in light of Facebook and Instagram and Snapchat
Speaker 1: and um TikTok and so on. How does the platform
Speaker 1: continue to grow and be increasingly relevant? You know, the
Speaker 1: platform punches above its weight, meaning above its size, because
Speaker 1: of the prominent users that it has and because it's
Speaker 1: public and it's really a media property. I think partially, um,
Speaker 1: but you know, it hasn't really grown robustly for several years,
Speaker 1: and I think in the maturing social media landscape, that's
Speaker 1: actually the biggest problem. I think I think that the
Speaker 1: risk that Twitter faces it just becomes so much smaller
Speaker 1: than some of the other platforms that it gradually loses
Speaker 1: its relevance. And I think the growth problem is the
Speaker 1: primary problem for Elon disolved. Roger McNamee, you know, longtime
Speaker 1: tech investor, came on saying something similar. I want you
Speaker 1: to take a quick listen to what he had to say.
Speaker 1: Twitter is never successfully monetized itself. The company, I believes
Speaker 1: still has a huge net loss cumulatively since it was started,
Speaker 1: and given its influence with politicians, celebrities and journalists, Twitter
Speaker 1: should have been able to find a path to much
Speaker 1: greater profitability than its head. It's so influential, Ali, why
Speaker 1: don't you think that has happened, and obviously I know
Speaker 1: that in those earlier days you tried to make that happen. Well.
Speaker 1: I mean, look, Twitter is as an advertising business, it
Speaker 1: is at quite some scale. I think it lacks a
Speaker 1: certain characteristics that Facebook has that make it you know, uh,
Speaker 1: you know that lend itself to being a better monetization platform. Namely,
Speaker 1: Facebook's insistence on gathering a huge amount of data on
Speaker 1: its users. It's useful to advertisers all the tracking they
Speaker 1: do off the site, uh, and their insistence on real
Speaker 1: identity uh, none of which Twitter Twitter does, and so
Speaker 1: as an advertising platform, relative to the things that Facebook does,
Speaker 1: it never quite had as much power. Um. And as
Speaker 1: I said before, I think the fact that the platform
Speaker 1: isn't growing robustly um relative to the growth at Snapchat, Instagram, Twitter,
Speaker 1: among others have seen, means that it's a less exciting
Speaker 1: place for advertisers to be um as a and a
Speaker 1: in a place that really can't drive the kind of
Speaker 1: growth in advertising revenue that some of these other platforms
Speaker 1: have driven. Having said that, you know, it's a fairly significant,
Speaker 1: you know, in the billions of dollars of advertising revenue,
Speaker 1: uh scale business. So it's not a small company. And
Speaker 1: if the priority were to drive Twitter to profitability, like uh,
Speaker 1: Roger maybe indicates should be I'm sure there's a way
Speaker 1: to do that by just drinking the size of the company. UM.
Speaker 1: I just think that the various people who run the
Speaker 1: company have always been motivated by a bigger ambition and
Speaker 1: have hence, you know, uh invested in in growing the
Speaker 1: size of the company. UM. And you know, for right
Speaker 1: or wrong, what do you think the chances are that
Speaker 1: Elon Musk can unlock that potential? You know, it's a
Speaker 1: fascinating question, like how much he even cares about near
Speaker 1: term profitability? I mean, certainly if he can find it,
Speaker 1: he's really accountable with no one he's taking the company private. Um,
Speaker 1: he has unlimited personal resources. Uh. And he certainly hasn't
Speaker 1: talked about Twitter as a business very much. Has talked
Speaker 1: about Twitter as a social platform, you know, he's talked
Speaker 1: about the importance of freedom of speech, Twitter as a
Speaker 1: global He's talked about subscription potentially as an avenue. Yep. Ye.
Speaker 1: So you know, I don't know, I think I'm sort
Speaker 1: of interested to see what he does too. But you know,
Speaker 1: my read of it is, UM, the sort of business
Speaker 1: of Twitter probably isn't his number one priority in the
Speaker 1: near term. I could be wrong, but just judging, uh,
Speaker 1: you know, from some of the common cities made, he
Speaker 1: seems to be more interested in a more transparent, a
Speaker 1: more free platform. Uh, you know, making certain things open source.
Speaker 1: And you know, kind of all these ideas that he's
Speaker 1: that he's sort of um mentioned. And this is a
Speaker 1: very unique situation because you know, with the world's richest
Speaker 1: man buying this platform, he can kind of do whatever
Speaker 1: he wants you at least for a period of time. Uh.
Speaker 1: And I don't think he's behold in the way a
Speaker 1: financial investor, a private equity investor would be to you know,
Speaker 1: near term metrics or near term profitability. So I think
Speaker 1: it's a fascinating question to see what he does. A
Speaker 1: minute left, Ali, any advice for Elon Musk, I think
Speaker 1: the advice I would give is the advice he probably
Speaker 1: would would have a very hard time taking. Uh. Look,
Speaker 1: I don't think some of the tweets he's made recently
Speaker 1: about criticizing some of the employees of the company, and
Speaker 1: and uh, I think he has a different responsibility now
Speaker 1: as the owner of Twitter. Uh, in terms of how
Speaker 1: he behaves on the platform itself, um, and it's clearly
Speaker 1: fun for him or he gets some value out of
Speaker 1: the off color kind of things he does and says,
Speaker 1: like you know, Ray Kuel and Bill Gates or whatever
Speaker 1: it might be. I just don't think that helps him
Speaker 1: now as the owner of Twitter. Um. I don't think
Speaker 1: it helps him with employees. I don't think it helps
Speaker 1: him with perspective employees. Uh, and I don't think it
Speaker 1: helps the platform itself. So I would say, you know,
Speaker 1: let's just stick to business and try to try to
Speaker 1: take this platform to where really it should be in
Speaker 1: terms of its importance in the world. All right, Oli
Speaker 1: ROGANI for more Twitter CFO and see oh appreciate you
Speaker 1: sharing that with us here today. That does it For
Speaker 1: the sedition of Bloomberg Technology Wall Street Week. Coming up next,
Speaker 1: we're gonna talk to Larry Summers. He's got some thoughts
Speaker 1: on the Elon deal. And don't forget to check out
Speaker 1: a podcast. You can find it daily anywhere you get
Speaker 1: your podcasts. Happy Friday, everyone,