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Speaker 1: From the heart of where innovation, money and power COLLI

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Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with

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Speaker 1: Emily Jay. I'm Emily Chang in San Francisco, and this

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Speaker 1: is Bloomberg Technology. Coming up in the next hour, NATO

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Speaker 1: talks talk sending more troops to europe eastern border with

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Speaker 1: Russia and warning Puttin against the use of nuclear weapons.

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Speaker 1: We will have the latest from President Biden's trip to Brussels,

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Speaker 1: sanctions and what it all means for Russian oil. Plus

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Speaker 1: of Bloomberg Exclusive. Apple working on a hardware subscription for

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Speaker 1: the iPhone and other hardware products. Why buy a device

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Speaker 1: out right when you can just pay a monthly fee?

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Speaker 1: Will dial in our very own Mark German and Uber

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Speaker 1: will now list New York's city taxi cabs on its app.

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Speaker 1: This an effort to ease a driver's shortage and higher

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Speaker 1: fares and get a leg up on rival lift. We'll

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Speaker 1: get to all of that in a moment. Continuing now,

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Speaker 1: the war on Ukraine has now entered its second month.

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Speaker 1: President Biden marking that grim milestone in Brussels, meeting with

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Speaker 1: Natal leaders about what can be done to stop Russia's

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Speaker 1: unprovoked aggression. The President was asked if Russia should remain

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Speaker 1: in the G twenty and this is what he had

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Speaker 1: to say. My answer is yes, it depends on the

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Speaker 1: um I that was raised today, and I raised the

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Speaker 1: possibility if that can't be done, if Indonesia and others

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Speaker 1: do not agree, then we should, in my view, asked

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Speaker 1: to have both UM Ukraine be able to attend the meetings.

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Speaker 1: For more on the president's visit, we are joined now

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Speaker 1: by a Bloomberg Washington correspondent, Emory Hordern, who is in Brussels.

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Speaker 1: Emory obviously a significant statement there from President Biden. So far,

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Speaker 1: what has been the reaction to what he has had

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Speaker 1: to say and his meeting with top European leaders. Yeah,

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Speaker 1: this was really a main headline coming out of that

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Speaker 1: press conference the President gave at NATO following his extraordinary meeting,

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Speaker 1: and it's been a slew of diplomacy here in Brussels, Emily.

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Speaker 1: The President just wrapped up he had a NATO meeting

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Speaker 1: at G seven meeting, and then he went over to

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Speaker 1: the European Commission to address European leaders. When he says

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Speaker 1: that he doesn't he thinks that Russia should be vetoed

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Speaker 1: and disinvited from the G twenty. He said that if

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Speaker 1: not every G twenty nation agrees, they would ununanimous support.

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Speaker 1: He thinks Ukraine at the very least should be invited

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Speaker 1: to make sure they're there for part of these conversations.

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Speaker 1: After this, Emily, the President will move on to Poland overnight.

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Speaker 1: He'll be tomorrow morning, He'll be traveling there and I'll

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Speaker 1: be meeting with his counterpart as well as really seeing

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Speaker 1: what is happening in terms of the human toll this

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Speaker 1: crisis has taken. This is really going to be a

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Speaker 1: little bit more of an emotional day. If today was

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Speaker 1: really the diplomatic day, tomorrow is really an emotional day

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Speaker 1: and day about humanity because this crisis has caused ten

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Speaker 1: million Ukrainians displaced either in their own home or more

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Speaker 1: than three million have actually fled to bordering countries, and

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Speaker 1: Poland really being the ground zero for that. Now there

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Speaker 1: is this question about just who President Biden is going

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Speaker 1: to meet uh in the next twenty four hours. He was, um,

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Speaker 1: you know, a little circumspect about what was coming next.

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Speaker 1: What do we know about who exactly he's going to meet,

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Speaker 1: and what the impact of those meetings will be Yeah,

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Speaker 1: some details at the moment are not released to the

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Speaker 1: press obviously for some security concerns. But the President in

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Speaker 1: the morning, he'll still be in Brussels and he'll sit

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Speaker 1: down with Ursula vander Lyon and we're also are expecting

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Speaker 1: from the United States, and the President signaled this this

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Speaker 1: evening is some more details about potentially what the US

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Speaker 1: can do in terms of shoring up natural gas supplies

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Speaker 1: for Europe, because we know how dependent Europe is on

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Speaker 1: Russian natural gas and oil and at this moment that

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Speaker 1: is really the continuous lifeblood of the An economy that

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Speaker 1: has pretty much been saved in terms of these harsh

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Speaker 1: penalties and sanctions. Then when the President goes on to Poland,

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Speaker 1: we do know over the weekend he'll be sitting down

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Speaker 1: for a bilateral with this Polish counterpart, President Data. There's

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Speaker 1: going to be a number of issues to discuss, but

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Speaker 1: most top of the priority would really be the humanitarian focus,

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Speaker 1: given the fact that Poland is really dealing with an

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Speaker 1: influx of refugees and asylum seekers from Ukraine. Emory of

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Speaker 1: course traveling with the President, but we're going to be

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Speaker 1: following the President's every move. Meantime, new exclusive deals on

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Speaker 1: the breach of details on the breach of Octa and

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Speaker 1: the group behind it. Bloom Brig has learned that a

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Speaker 1: sixteen year old from England is believed to be the

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Speaker 1: mastermind behind the attack. Bloom Brig's William Turton was behind

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Speaker 1: that scoop, he joins us. Now, so William, just who

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Speaker 1: is this sixteen year old teenager who lives with his

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Speaker 1: mom and how did he pull this off? Well, you know,

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Speaker 1: we're not naming him obviously because he's a miner, but

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Speaker 1: he's a very talented hacker. One person I spoke to

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Speaker 1: who was responding to him hacking a company said that

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Speaker 1: he was so fat and so proficient that at first

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Speaker 1: when they were observing the activity, they thought it might

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Speaker 1: be automated, like it was a script. But no, it

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Speaker 1: was just the sixteen year old kid who actually kind

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Speaker 1: of has like a pretty expansive online presence of him

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Speaker 1: dabbling and hacking. And you know, now he's probably one

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Speaker 1: of the most notorious cyber criminals of all time. You know,

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Speaker 1: he's achieved that label really quickly because this group has

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Speaker 1: hacked into Microsoft Octa and Video. You know, these huge targets.

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Speaker 1: That's been millions and millions of dollars on cybersecurity. I mean,

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Speaker 1: I haven't seen anything a cyber crime group like this

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Speaker 1: in many years. So now that we know who he is,

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Speaker 1: what could the consequences for this kind of attack be?

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Speaker 1: You know, it's it's really interesting the laws in the UK,

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Speaker 1: especially with miners and these sorts of crimes, are pretty different. Um,

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Speaker 1: and it's it's it's there's been actually kind of historically

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Speaker 1: a problem of when you have miners who are hacking,

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Speaker 1: kind of keeping them off the computer. This is really

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Speaker 1: reminiscent of the hack of Twitter that happened last year,

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Speaker 1: where it was a lot of miners involved in pulling

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Speaker 1: off the hack. Now is different because many of them

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Speaker 1: were in the US, and you know, they're very quickly arrested,

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Speaker 1: but it's it's difficult really to keep these kids away.

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Speaker 1: And what do we know about the actual consequences to

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Speaker 1: Octa and the businesses that have been affected. Of course,

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Speaker 1: Octa has been very clear Octa itself was not breached,

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Speaker 1: but there are these three sixties six other businesses that

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Speaker 1: were compromised, right right, Yeah, And in part of our

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Speaker 1: story yesterday you might have noticed we reported that the

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Speaker 1: hackers used their breach of Octa in order to enable

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Speaker 1: further hacks. Now we don't know what the details are,

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Speaker 1: but if you're a company like the Octa, that's basically

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Speaker 1: the worst case scenario. And so you know, I don't

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Speaker 1: think we know exactly what happened. We know what the

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Speaker 1: company has said so far that there were a limited

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Speaker 1: number of accounts actors. But still, when you're a company

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Speaker 1: that offers a service that does identity management, it's the

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Speaker 1: last thing that you want to happen, all right. Bloomberg's WILLIAMS.

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Speaker 1: Turton will continue to watch your reporting on this. Thank

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Speaker 1: you for bringing us that story meantime. It is the

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Speaker 1: first alliance of its kind in the United States. Uber

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Speaker 1: will list New York City a yellow taxis on its

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Speaker 1: app to help combat a driver shortage and rising fairs. Yep,

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Speaker 1: you heard that right. More on that next, this is Bloomberg.

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Speaker 1: Uber will list New York's yellow cabs on its app.

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Speaker 1: This is the first alliance of its kind in the

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Speaker 1: United States. The announcement sending Uber shares jumping Thursday. I

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Speaker 1: want to get more on this with Bloombergs Jackie Dabolos,

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Speaker 1: who covers Uber for US and this Jackie after years

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Speaker 1: of acrimony, no what he thought this would ever happen?

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Speaker 1: Why now you know? No one could have seen this coming.

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Speaker 1: It's been a contentious decade ever since Uber stepped onto

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Speaker 1: the scene in New York. And really what this means

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Speaker 1: is it's an acknowledgement by Uber that they can't do

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Speaker 1: this alone. They have said that they want to get

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Speaker 1: every taxi in the world on their app by and

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Speaker 1: it's a really ambitious school. So to be able to

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Speaker 1: pull it off in New York is a true sign

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Speaker 1: that they are going to tackle this in the US

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Speaker 1: head on, and it's a good sign that they might

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Speaker 1: get a competitive edge over Lift. So a few things

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Speaker 1: at play, but more so you have to think about

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Speaker 1: the driver's shortage. They needed a boost to supply, and

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Speaker 1: this is certainly going to give them that. What does

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Speaker 1: this mean for drivers? Uber is billing it as a

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Speaker 1: win for them, is it really And what does it

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Speaker 1: mean for fares given gas prices and inflation? More broadly, Well,

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Speaker 1: for sure the boost and supply, it's about fourteen thousand

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Speaker 1: taxis in New York that are now going to be

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Speaker 1: available on the Uber app. Customers can hail arrived just

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Speaker 1: they like they normally do, but now it could be

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Speaker 1: a cab waiting to pick them up. And so for

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Speaker 1: the cab driver, they're going to be paid in the

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Speaker 1: same way that other app based drivers in New York

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Speaker 1: are paid. They have a minimum wage that's set by

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Speaker 1: the city, and this differs from the metered fares that

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Speaker 1: they are typically used to. Now. Uber says that this

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Speaker 1: rate that they're paid by the city is actually better

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Speaker 1: on average than the metered rates. So this could be

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Speaker 1: a boost in earnings for New York cities cab drivers,

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Speaker 1: but also, you know, just more business. They saw their

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Speaker 1: demand for cabs decimated when ride hailing came into town,

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Speaker 1: and so I think from one perspective, it's not just

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Speaker 1: going to put more people in their cars, but also

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Speaker 1: maybe more money in their pockets. All Right, how times

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Speaker 1: have changed. Bloombergh JACKI Davilos. We'll see how this works out.

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Speaker 1: We're gonna continue this conversation with the CEO of Hulbert himself.

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Speaker 1: You can tune into Bloomberg Technology Tuesday for our exclusive

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Speaker 1: interview with Dara Cosmash. I'm catching up with him at

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Speaker 1: Shop Top, one of the biggest retail conferences in the

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Speaker 1: world in Las Vegas. Meantime, shares of ev maker Rivian

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Speaker 1: rose to the highest level in three weeks. The company

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Speaker 1: has been in the spotlight since it's glitzy November I

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Speaker 1: p O, but the stock has tumbled ever since, and

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Speaker 1: Rivian's value has fallen from one billion dollars to just

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Speaker 1: forty two billion. Bloomberg News spoke with the company's CFO,

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Speaker 1: Claire McDonough, who says if the company can wramp up

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Speaker 1: production and build capacity, the share price will quote take

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Speaker 1: care of itself. With the war on Ukraine still raging

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Speaker 1: and inflation here in the US, companies and investors alike

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Speaker 1: contending with fall little markets. How long will it last?

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Speaker 1: And what is the path forward? Let's talk about it

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Speaker 1: all with Kathy Gow, partner at Sapphire Ventures. Kathy, what

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Speaker 1: are you telling your company's about how long to plan

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Speaker 1: for this kind of market volatility and how to navigate it? Oh, Emily,

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Speaker 1: It's so great to be here. First of all, as always,

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Speaker 1: what confusing times we live in, right everyone is trying

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Speaker 1: to make sense of it all, and I'm super happy

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Speaker 1: to be here today to share my perspective as a

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Speaker 1: venture investor. Now, I think the word everyone is using today,

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Speaker 1: including myself, to describe the current approach the market is uncertain.

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Speaker 1: About half of the NASDAC had valuations slashed by fifty

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Speaker 1: in a matter of weeks, and uncertainty is really the

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Speaker 1: foe of the markets. This turbulence is creating a very

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Speaker 1: very confusing fundraising environment for tech entrepreneurs and for investors. Frankly,

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Speaker 1: no one knows what's going to happen right But because

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Speaker 1: no one has the magic ball, there are certain ways

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Speaker 1: that founders can prepare themselves, even though we don't know

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Speaker 1: when the other shoe, so to speak, will drop or

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Speaker 1: how far it is to drop up. How is this

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Speaker 1: impacting valuations? It certainly seems like things have taken a pause,

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Speaker 1: if if not some companies maybe having to take a haircut.

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Speaker 1: If you're trying to raise money right now, well you

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Speaker 1: know what private markets for software companies, and I focus

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Speaker 1: on software companies, so other markets might be seeing different

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Speaker 1: things have not yet meaningfully corrected. I am hearing some

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Speaker 1: anecdotal stories about lower valuations and some reed trades in

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Speaker 1: later stage deals, but there's not been a lot of

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Speaker 1: discernible pattern yet. Frankly, the early stage also seems to

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Speaker 1: be quite insulated at this point in time, and I

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Speaker 1: think it's important to also call out that there is

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Speaker 1: a lag between public market movements and the private markets,

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Speaker 1: and we haven't felt the full impact yet in the

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Speaker 1: private markets now. This lag has been seen in prior

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Speaker 1: cycles as well, in the dot com crash during the

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Speaker 1: Great Recession. This time, there's also just a massive amount

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Speaker 1: of dry powder on the sidelines. I think over a

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Speaker 1: hundred billion was raised last year by US venture capital

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Speaker 1: firms alone. So given the amount of dry powder, do

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Speaker 1: you think that we won't necessarily see as dramatic and

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Speaker 1: impact on private markets that we would had all that

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Speaker 1: money not been raised. It's definitely a counter counter force

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Speaker 1: to what's happening in the market. But you know, my

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Speaker 1: my prediction is that we will see an impact in

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Speaker 1: the private markets first with the late stage, which we're

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Speaker 1: kind of seeing already, But usually these things take a quarter,

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Speaker 1: two quarters, maybe three quarters to see and will hit

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Speaker 1: the late stage companies first, flow into the mid sector,

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Speaker 1: and then hit the earliest stage companies last. So what

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Speaker 1: do you see it is coming next? If you could

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Speaker 1: sort of map out the second half of the year.

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Speaker 1: What are you planning for at the end of the day. Um,

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Speaker 1: what we do at Sapphire is striving to back the

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Speaker 1: most exceptional entrepreneurs and companies of consequence and regardless of

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Speaker 1: what's happening in the markets. Following that north star of

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Speaker 1: investing in absolutely the best teams and companies I feel

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Speaker 1: will cut through the volatility in the longer term. Now,

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Speaker 1: what I'm telling my CEOs are there are certain things

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Speaker 1: you can do to protect your business in case the

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Speaker 1: fundraising markets tighten up for the rest of the year.

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Speaker 1: These are things like making sure that you have enough

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Speaker 1: cash on your balance sheet right, taking care of your

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Speaker 1: current customers. It costs way more to acquire a new

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Speaker 1: customer than to retain an existing customer. And also don't

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Speaker 1: forget about retaining your employees as well. Kathy cow Sapphire Ventures,

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Speaker 1: thank you for sharing your perspective with us. And now

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Speaker 1: that big Apple news hearing it here first, Bloomberg has

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Speaker 1: learned the iPhone maker is working on a subscription service

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Speaker 1: for the I phone and other hardware products, a move

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Speaker 1: that could make device ownership similar to paying a monthly

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Speaker 1: app feed is according to people with knowledge of the matter,

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Speaker 1: I want to bring in bloombergs Mark German who broke

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Speaker 1: this story. Mark, How exactly would this work? Yeah, thank

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Speaker 1: you for having me. This would be no different, like

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Speaker 1: you said, than your monthly ten dollar Apple Music subscription

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Speaker 1: or fifteen dollar month Apple one Bundle subscription. Right, you'd

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Speaker 1: be paying for the phone on a monthly basis like

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Speaker 1: you might on a car least. Now, this is different

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Speaker 1: than installment programs and carry your subsidy programs today. What

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Speaker 1: Apple and the carriers allow you to do if you

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Speaker 1: don't want to buy the phone out right is split

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Speaker 1: up the costs, whether that's two or less for an

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Speaker 1: sc in such over twelve, eighteen, four or thirty months,

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Speaker 1: depending on your carrier. This would be a set fee

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Speaker 1: that's not the cost the phone, divided by you know

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Speaker 1: how many months they're already year or two years? So?

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Speaker 1: And will this apply to not just the iPhone, but iPads, laptops,

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Speaker 1: Apple watches? How far does this go? It'll start with

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Speaker 1: the iPhone. Eventually it's possible that Apple will also expand

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Speaker 1: it expand it to other hardware as well. Part of

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Speaker 1: the program is the ability to upgrade to the new

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Speaker 1: model annually as they come out. Just like if you

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Speaker 1: have an Apple TV Plus subscription or an Apple Music subscription,

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Speaker 1: you're constantly getting new features and content as part of

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Speaker 1: that monthly fee you pay. And so there's other devices

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Speaker 1: that are also on an annual kaid. It's like the

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Speaker 1: Apple Watch, like the iPad and the Mac in some

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Speaker 1: respects as well. So I do see this expanding over time,

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Speaker 1: and I also believe one day this could become the

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Speaker 1: preferred method of buying Apple products instead of having to

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Speaker 1: pay you know, those prices at the beginning of the purchase.

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Speaker 1: So what does that mean for Apple in terms of revenue?

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Speaker 1: I mean, do you see this bringing in you know,

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Speaker 1: significantly more revenue of people aren't buying the phones outright,

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Speaker 1: but more people spring for that option because they don't

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Speaker 1: have to. Well, this is going to be just one option, right,

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Speaker 1: There's still a lot of people who are going to

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Speaker 1: use the installment plans and installment programs from both Apple

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Speaker 1: and the carriers. There's a lot of people who are

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Speaker 1: still going to the phone out right. This is going

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Speaker 1: to be another option at check out when you go

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Speaker 1: to the Apple online store to tie the subscription price

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Speaker 1: to your Apple I D I think this is going

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Speaker 1: to ultimately increase revenue for Apple because instead of just

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Speaker 1: getting a one dollar payment once from a consumer, they

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Speaker 1: might get per month for several years, right, and they're

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Speaker 1: going to be able to sell those phones over many

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Speaker 1: years to consumers and add up to maybe some consumers

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Speaker 1: paying three or four ARS a month for a group

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Speaker 1: of Apple products and services. So I do think this

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Speaker 1: is gonna be a positive for Apple, and it's going

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Speaker 1: to mean more upgrades, more services purchases, more app downloads.

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Speaker 1: So I think overall this is a smart transition that

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Speaker 1: you're going to see happening. And they're not the only

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Speaker 1: one doing this, right. Google has a program called Pixel

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Speaker 1: pass Right, which is a subscription program for a combination

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Speaker 1: of their device and their services. Obviously, their devices nowhere

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Speaker 1: near as popular as the iPhone, but they're trying it.

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Speaker 1: Peloton as well. Peloton is testing a six monthly fee

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Speaker 1: for leasing their bikes. Obviously Peloton is not doing as

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Speaker 1: well as Apple, but again, these are examples of other

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Speaker 1: companies moving in the same direction. When is this transition happening?

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Speaker 1: Why can people do this? So they have been working

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Speaker 1: on this for a little while now. It was originally

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Speaker 1: scheduled to launch sometime this year, at the end of

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Speaker 1: this year, so probably between the end of this year

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Speaker 1: and sometime next year. And how quickly do you expect

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Speaker 1: Apple to ramp something like this up move from say

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Speaker 1: an iPhone to other hardware products, you know, over time, right,

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Speaker 1: I think it will start out if it works so

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Speaker 1: with the iPhone. If they continue to generate more revenue

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Speaker 1: on the iPhone and they work without this program, then

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Speaker 1: you probably would see this, you know, rapidly expanding. I

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Speaker 1: think it will be iPhone focused iPhone first. Given there

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Speaker 1: are so many installment and carrier plans, even Apple's own

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Speaker 1: iPhone upgrade program, Apple's Apple Card monthly installments program with

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Speaker 1: Goldman sacks to the phone. So I think they're just

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Speaker 1: continuing to add different purchasing options for the iPhone to

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Speaker 1: make it appealing to more and more people. So I

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Speaker 1: think it'll be iPhone focus for at least a little while.

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Speaker 1: Bloomberg's Mark German scoop Mark, thank you for bringing that

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Speaker 1: to us. Welcome back to Bloomberg Technology. I'm Emily Chang

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Speaker 1: in San Francisco. We're still assessing the fallout of employees

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Speaker 1: pushing back and walking out on Disney after CEO Bob

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Speaker 1: Japeck initially refused to take a position on a controversial

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Speaker 1: Florida bill, then changed course. One of my next guests

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Speaker 1: says Bob j Peck needs to go, calling him the

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Speaker 1: worst Disney leader he can remember, adding that the company

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Speaker 1: needs to bring back former CEO Bob Iger. Joining me

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Speaker 1: now the man who said that, Ross Gerber, president and

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Speaker 1: CEO of Gerber Kawasaki and a Disney investor. I'm also

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Speaker 1: joined by Ivan fine Set, chief investment officer of Tiger's

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Speaker 1: Financial who has a BY rating and twelve month price

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Speaker 1: target of two dollars a share on Disney, which is

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Speaker 1: the highest of all analysts tracked by Bloomberg. Gentlemen, thank

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Speaker 1: you so much for joining us. Ross, I want to

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Speaker 1: start with you. Why are you so disappointed in Bob

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Speaker 1: Peck so far? Well, first, it started with Starlett Johannesson,

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Speaker 1: you know, when he first took over, and the way

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Speaker 1: he was handling talent was just horribly done to ultimately

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Speaker 1: end up giving her the same amount of money anyways,

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Speaker 1: And and when you start ruffling feathers with the most

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Speaker 1: talented people in your you know, movie business, that that

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Speaker 1: doesn't make sense. And then now we've moved on to

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Speaker 1: political issues, where Disney has always had a long history

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Speaker 1: of liberalism and and sort of educating our society about

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Speaker 1: liberalism through movies and shows and animation. Um for so

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Speaker 1: long we we expose our children to new ideas through Disney.

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Speaker 1: So I found it incredibly poor leadership that an issue

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Speaker 1: as simple as the one in Florida was one that

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Speaker 1: you know, Cha Peck waffled on. And it's something that's

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Speaker 1: crucially important in our society today that we have more

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Speaker 1: acceptance of of all people, and Disney stands for that.

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Speaker 1: So the fact that this was a difficult issue for

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Speaker 1: Chapec to deal with really just makes me doubt his

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Speaker 1: ability as a leader. He should just be an operations person.

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Speaker 1: And that's what I missed about Bob Iger. He was

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Speaker 1: such a class act. He was such a gentleman and

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Speaker 1: mensch um and and just always made Disney look good

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Speaker 1: no matter how difficult the situation is. And I'm biased

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Speaker 1: because I'm a big fan of Bob Iger and I

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Speaker 1: miss him, but you know, i'd love to see him back.

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Speaker 1: I didn't. What's your reaction to that, given that you're

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Speaker 1: clearly bullish, You've got such a high price target here,

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Speaker 1: and you must I believe believe Bob J. Peck is

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Speaker 1: doing a good job. I do. First of all, he

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Speaker 1: became CEO and right as we were going into the

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Speaker 1: pandemic lockdown where travel was shut down, movie studios where

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Speaker 1: production was shutdown, theaters were shutdown, cruise lines were shutdown,

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Speaker 1: and the parks were shut down. And he did a

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Speaker 1: great job stewarding the company um saving cash, cutting expenses

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Speaker 1: and investing in the expansion and increased content for Disney

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Speaker 1: Plus and their directed to consumer streaming services. So he

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Speaker 1: has gone through a really difficult time. I agree with

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Speaker 1: Ross that Bob Iger was a great CEO, but I

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Speaker 1: don't agree that UH in this unfortunate time that Bob J. Peck.

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Speaker 1: I think he did a great job. And he said

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Speaker 1: in his note to chare all two employees, if he

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Speaker 1: took a hard stance either on either side of this position,

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Speaker 1: that it would be used as a political weapon. And

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Speaker 1: I agree. And Disney is a company that that leads

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Speaker 1: UH in a lot of areas, especially in acceptance, but

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Speaker 1: they are not a political company and they do sidestep

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Speaker 1: controversy whenever possible, So I don't really think he I

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Speaker 1: think he acted as best he could in somebody in

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Speaker 1: the situation that he's in. But the bigger picture, as

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Speaker 1: far as investors, he has so far done a great

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Speaker 1: job as the CEO in a very tough time, and

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Speaker 1: I think he will continue to do so. As the

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Speaker 1: parks you know, open and travel open to area. See

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Speaker 1: that to the extent parks have been opened, they've had

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Speaker 1: record levels of attendance, pastor record ticket prices, record in

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Speaker 1: part spending. So the company is doing well and he

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Speaker 1: has grown um Disney's direct to consumer streaming services very well.

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Speaker 1: Ivan is taking the stand on this bill though really

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Speaker 1: a political issue. I mean, Disney has been about inclusion

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Speaker 1: since you know, as far back as I can remember.

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Speaker 1: I mean, it's a small world, after all, we're taking

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Speaker 1: a position on this bill from the beginning really have

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Speaker 1: been that political at all, Yes, because it would have

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Speaker 1: been whatever stance he took would have been used against him.

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Speaker 1: But Ivan, what's wrong with taking a stance against discrimination

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Speaker 1: and having people who are for discrimination be against you?

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Speaker 1: See this is where I see leadership, Like, let me

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Speaker 1: finish Running a park is one thing and leadership is another.

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Speaker 1: I agree. If you put him in a room by

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Speaker 1: him self. He's done a great job operating Parks or

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Speaker 1: Disney Plus. But a CEO's job is to be in

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Speaker 1: the public and to represent the values of the business,

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Speaker 1: not just operate the business. That's a CEO's job, and

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Speaker 1: that's where he was and that's where he should be.

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Speaker 1: But when you're talking about leadership and being scared to

431
00:24:22,119 --> 00:24:27,439
Speaker 1: take a position on such a simple thing. It is

432
00:24:27,520 --> 00:24:33,240
Speaker 1: wrong to discriminate against gay people, especially children in school,

433
00:24:33,280 --> 00:24:34,960
Speaker 1: and to make a law to do that, and have

434
00:24:35,080 --> 00:24:38,720
Speaker 1: any confusion over this because you don't want right wingers

435
00:24:38,760 --> 00:24:42,280
Speaker 1: attacking you like this is the problem. People care about

436
00:24:42,280 --> 00:24:45,040
Speaker 1: the moral values of the CEO as much as it

437
00:24:45,160 --> 00:24:48,160
Speaker 1: identifies with that company. And now you've got people on strike,

438
00:24:48,359 --> 00:24:51,440
Speaker 1: and you've got nobody's happy with what he's done. So

439
00:24:51,440 --> 00:24:54,480
Speaker 1: so ros here's a question. Look, Bob J. Peck got

440
00:24:54,520 --> 00:24:57,080
Speaker 1: a lot of pushback and then he changed course. He

441
00:24:57,200 --> 00:25:01,600
Speaker 1: didn't want to this listening tour. Isn't that leadership when

442
00:25:01,600 --> 00:25:04,960
Speaker 1: you can admit that you made a mistake. Yes, I know,

443
00:25:06,720 --> 00:25:13,720
Speaker 1: not if the mistake is stupid, all right. I don't

444
00:25:13,760 --> 00:25:17,960
Speaker 1: believe his stance was stupid, and I do like people

445
00:25:18,000 --> 00:25:22,560
Speaker 1: who can change their opinion based on information, So the

446
00:25:22,600 --> 00:25:25,080
Speaker 1: fact that people change their opinion on things, I don't

447
00:25:25,119 --> 00:25:27,920
Speaker 1: think it's negative. I think it's a positive. Disney has

448
00:25:27,960 --> 00:25:31,679
Speaker 1: been a supporter of the LGBTQ community for years. They

449
00:25:31,720 --> 00:25:35,159
Speaker 1: were one of the first companies to extend benefits to

450
00:25:35,600 --> 00:25:38,840
Speaker 1: same sex partners over twenty five years ago, and they

451
00:25:38,920 --> 00:25:45,120
Speaker 1: are extremely inclusive company that produces extremely inclusive and enlightening content.

452
00:25:45,640 --> 00:25:47,800
Speaker 1: And I think he had given that. It's It's not

453
00:25:48,080 --> 00:25:52,199
Speaker 1: a a simple stance, and it happens to be. I mean,

454
00:25:52,280 --> 00:25:57,159
Speaker 1: they have a tremendous presence in Florida, but Florida has

455
00:25:57,240 --> 00:26:02,440
Speaker 1: been a very, very politically charged state, and unfortunately, I

456
00:26:02,840 --> 00:26:06,000
Speaker 1: think his first reaction of not to take an extreme

457
00:26:06,080 --> 00:26:08,119
Speaker 1: stance because it would have been used against him, and

458
00:26:08,240 --> 00:26:10,960
Speaker 1: it is being used against them now no matter what position,

459
00:26:11,000 --> 00:26:16,560
Speaker 1: And if he takes a a more progressive position toward it,

460
00:26:16,680 --> 00:26:19,960
Speaker 1: he's also being criticized. So you can't criticize him on

461
00:26:20,040 --> 00:26:22,959
Speaker 1: both sides. But as far as so, my job as

462
00:26:23,000 --> 00:26:26,760
Speaker 1: a research analyst is to focus on investment opportunities, and

463
00:26:26,880 --> 00:26:31,440
Speaker 1: as an investment opportunity, I think Disney's brand equity, it's

464
00:26:31,520 --> 00:26:35,359
Speaker 1: industry leadership, the quality of its content that direct to

465
00:26:35,440 --> 00:26:38,600
Speaker 1: consumer streaming services, and the fact that they get really

466
00:26:38,680 --> 00:26:42,920
Speaker 1: a tremendous bang for their investment in contact content dollar

467
00:26:43,040 --> 00:26:45,440
Speaker 1: because not only is it on streaming, it's in theaters,

468
00:26:45,520 --> 00:26:49,640
Speaker 1: it's on Broadway, it's in licensing, it's in driving people

469
00:26:49,720 --> 00:26:52,439
Speaker 1: to the theme parks, to their cruise ships. So they

470
00:26:52,520 --> 00:26:55,119
Speaker 1: really create a lot of value with their content. And

471
00:26:55,240 --> 00:26:58,159
Speaker 1: they are and as I say, in media, content is

472
00:26:58,280 --> 00:27:02,800
Speaker 1: king and Disney is the king of So here's another question.

473
00:27:03,840 --> 00:27:08,440
Speaker 1: Ross Bob Iger has said he's gone. Any thought that

474
00:27:08,560 --> 00:27:12,440
Speaker 1: he might come back to this company is quote unquote ridiculous.

475
00:27:13,160 --> 00:27:18,400
Speaker 1: So if if Bob Iger's not coming back, who who

476
00:27:18,600 --> 00:27:20,720
Speaker 1: is is the right person to lead the company if

477
00:27:20,800 --> 00:27:24,280
Speaker 1: not Bob Jpeck, or maybe we give Bob Jacobeck some

478
00:27:24,359 --> 00:27:29,800
Speaker 1: more time. So Poward Schultz just came back. So you know,

479
00:27:29,960 --> 00:27:32,960
Speaker 1: you never want to say never, because I never would

480
00:27:32,960 --> 00:27:35,800
Speaker 1: have suspected Howard Shultz would be back at Starbucks, which

481
00:27:36,040 --> 00:27:39,080
Speaker 1: I think will be beneficial for spar Bucks. Um, I

482
00:27:39,160 --> 00:27:42,720
Speaker 1: don't know. Iger's a very young person for his age,

483
00:27:42,800 --> 00:27:45,200
Speaker 1: so he certainly has the physical ability to do this,

484
00:27:45,320 --> 00:27:47,520
Speaker 1: and I think he has moved on from Disney. But

485
00:27:47,640 --> 00:27:50,800
Speaker 1: I think the correct pick for CEO of Disney should

486
00:27:50,800 --> 00:27:53,400
Speaker 1: have been Kevin Mayer. It should still be Kevin Mayer.

487
00:27:53,800 --> 00:27:56,120
Speaker 1: Kevin Mayer has gone on to do a wonderful job

488
00:27:56,240 --> 00:27:59,600
Speaker 1: working in many different businesses. Now I've met Kevin, and

489
00:27:59,680 --> 00:28:01,800
Speaker 1: I think he's one of the sharpest people in Hollywood.

490
00:28:01,840 --> 00:28:05,040
Speaker 1: He's super connected, and he has the type of personality

491
00:28:05,440 --> 00:28:08,160
Speaker 1: that could have handled this a lot better than Bob. Now,

492
00:28:08,880 --> 00:28:11,280
Speaker 1: not to say that anything I've been saying is incorrect

493
00:28:11,359 --> 00:28:15,880
Speaker 1: from an investment thesis, I actually own the stock personally

494
00:28:15,920 --> 00:28:19,880
Speaker 1: and for my firm, not i'vean actually doesn't, and I'm

495
00:28:19,920 --> 00:28:23,200
Speaker 1: an activist shareholder. And so what that means is, as

496
00:28:23,320 --> 00:28:25,879
Speaker 1: the owner of the business, I don't like what my

497
00:28:26,080 --> 00:28:29,360
Speaker 1: CEO is doing, and so I'm talking about that. That's

498
00:28:29,400 --> 00:28:31,879
Speaker 1: what I'm saying. I would like to have the CEO

499
00:28:31,960 --> 00:28:35,240
Speaker 1: of Disney really represent the values of Disney. Now, the

500
00:28:35,359 --> 00:28:38,040
Speaker 1: fact that he's going on a listening tour is called

501
00:28:38,160 --> 00:28:42,360
Speaker 1: placating people. I don't think his views are any different.

502
00:28:42,720 --> 00:28:45,120
Speaker 1: He's just got to placate people. And that's my problem

503
00:28:45,160 --> 00:28:47,920
Speaker 1: with all this. Oh he's listening and all this, Come on,

504
00:28:49,240 --> 00:28:50,880
Speaker 1: all right, Ian, I'm gonna let you have the last

505
00:28:50,920 --> 00:28:55,440
Speaker 1: word here because obviously Rosh put push back on a

506
00:28:55,480 --> 00:28:58,959
Speaker 1: few things there. Yes, he's he's right about Howard Schultz,

507
00:28:59,080 --> 00:29:01,320
Speaker 1: and I think that it's good to see it Starbucks,

508
00:29:01,400 --> 00:29:04,400
Speaker 1: but I think this is a different situation. However, we

509
00:29:04,520 --> 00:29:07,520
Speaker 1: do own Disney on behalf of clients in accounts that

510
00:29:07,600 --> 00:29:10,680
Speaker 1: we manage. Our firm policy is that analysts and portfolio

511
00:29:10,760 --> 00:29:13,960
Speaker 1: managers cannot have personal positions in it. But I do

512
00:29:14,120 --> 00:29:15,880
Speaker 1: have a buy on the stock, and we do own

513
00:29:15,920 --> 00:29:18,480
Speaker 1: it on behalf of clients, and it's on our focused

514
00:29:18,520 --> 00:29:24,160
Speaker 1: opportunity research list and portfolio. But the disclosure said your

515
00:29:24,200 --> 00:29:27,200
Speaker 1: firm didn't known the stock? Sorry, Uh, what we do?

516
00:29:27,720 --> 00:29:29,840
Speaker 1: I thought I was on it that we did. But um,

517
00:29:31,000 --> 00:29:33,640
Speaker 1: but I think that j Peck it'll be a learning

518
00:29:33,720 --> 00:29:36,640
Speaker 1: experience for him and the company. And I think the

519
00:29:36,720 --> 00:29:40,960
Speaker 1: bigger picture is a company has responsibility to a lot

520
00:29:41,000 --> 00:29:46,040
Speaker 1: of stakeholders, not only shareholders, but employees, vendors, customers, convent

521
00:29:46,120 --> 00:29:49,120
Speaker 1: people who visit the park, and um, you know they

522
00:29:49,200 --> 00:29:52,920
Speaker 1: have a broad base of clients or customers that view

523
00:29:52,960 --> 00:29:55,600
Speaker 1: their content, go to the movies, go on their cruise ships,

524
00:29:55,760 --> 00:29:57,600
Speaker 1: go to the theme park too. So he has a

525
00:29:57,760 --> 00:30:01,520
Speaker 1: big audience, a big group of stakeholders that he really

526
00:30:01,560 --> 00:30:04,400
Speaker 1: has to care for, and I think that overall he's

527
00:30:04,480 --> 00:30:07,880
Speaker 1: done and we'll do a good job. Well. Certainly, Disney

528
00:30:08,040 --> 00:30:12,160
Speaker 1: has a lot of opportunities and challenges ahead of course,

529
00:30:12,200 --> 00:30:15,040
Speaker 1: shape himself. I appreciate both of you joining us and

530
00:30:15,080 --> 00:30:19,000
Speaker 1: coming to play. Ross Gerber Ivan fine Seth will continue

531
00:30:19,400 --> 00:30:23,200
Speaker 1: this debate coming up. Bitcoin rallying, but will it last?

532
00:30:23,280 --> 00:30:26,480
Speaker 1: As the war on Ukraine rages, so does a volatility

533
00:30:26,800 --> 00:30:29,000
Speaker 1: and crypto markets. We'll talk about all that and more

534
00:30:29,080 --> 00:30:32,320
Speaker 1: with Spencer Bogart from Blockchain Capital. That is next. This

535
00:30:32,480 --> 00:30:44,720
Speaker 1: is Bloomberg time now for our crypto rapport, with Bitcoin

536
00:30:44,800 --> 00:30:47,120
Speaker 1: climbing and more than forty four thousand for the first

537
00:30:47,200 --> 00:30:49,800
Speaker 1: time in almost a month, breaking out of its recent

538
00:30:49,880 --> 00:30:53,960
Speaker 1: narrow trading range. This increased closely mirroring gains among US

539
00:30:54,040 --> 00:30:58,280
Speaker 1: equity indexes. But the cryptocurrency was also boosted by speculation

540
00:30:58,360 --> 00:31:02,640
Speaker 1: that Russia is mulling accepting payments, accepting it for payments,

541
00:31:02,680 --> 00:31:05,440
Speaker 1: and that the operator of the terror blockchain is buying

542
00:31:05,480 --> 00:31:08,120
Speaker 1: the digital token as a reserve. Let's talk about all

543
00:31:08,200 --> 00:31:10,520
Speaker 1: that and more with my next guest, Spencer Bogart from

544
00:31:10,520 --> 00:31:13,160
Speaker 1: blockchain capital spencer, What do you think was driving the

545
00:31:13,240 --> 00:31:16,720
Speaker 1: jump today? Sure, I certainly think that all of those

546
00:31:16,760 --> 00:31:19,080
Speaker 1: headlines are having an impact here. I think there's just

547
00:31:19,440 --> 00:31:22,400
Speaker 1: broadly also a question of what type of heart assets

548
00:31:22,480 --> 00:31:24,960
Speaker 1: to people want to own in an inflationary environment, and

549
00:31:25,000 --> 00:31:27,960
Speaker 1: I think that that backdrop is also driving additional demand

550
00:31:28,080 --> 00:31:32,080
Speaker 1: for bitcoin and another heart assets. And yeah, bitcoin has

551
00:31:32,080 --> 00:31:34,680
Speaker 1: been trading in a fairly narrow range over the last

552
00:31:34,760 --> 00:31:38,880
Speaker 1: few weeks, despite being show such a big part of

553
00:31:38,920 --> 00:31:42,440
Speaker 1: the news, and you know, these global headlines that we're seeing,

554
00:31:42,760 --> 00:31:45,720
Speaker 1: why do you think that is? I think it's part

555
00:31:45,760 --> 00:31:48,640
Speaker 1: of a longer term trajectory of bitcoin just seen reduced

556
00:31:48,720 --> 00:31:51,440
Speaker 1: volatility over to time as its market cap and trading

557
00:31:51,520 --> 00:31:54,960
Speaker 1: volume and market infrastructure matures. Um. So, you know, I

558
00:31:55,000 --> 00:31:57,840
Speaker 1: think that that recently there's been some debate about what

559
00:31:58,040 --> 00:32:01,440
Speaker 1: the current market backdrop of you know, succored growth, increased

560
00:32:01,440 --> 00:32:04,640
Speaker 1: demand for horrid assets means coupled with the world of

561
00:32:04,880 --> 00:32:07,560
Speaker 1: rising interest rates where the price of money or the

562
00:32:07,600 --> 00:32:11,080
Speaker 1: cost of capital is increasing and maybe pulling out from

563
00:32:11,160 --> 00:32:15,360
Speaker 1: some of the more volatile segments of the market. So

564
00:32:15,800 --> 00:32:19,280
Speaker 1: looking at short term moves, what about the long term

565
00:32:19,760 --> 00:32:22,280
Speaker 1: what happens to bitcoin? What is bitcoin? What does the

566
00:32:22,320 --> 00:32:24,760
Speaker 1: market look like five years out? We took we talked

567
00:32:24,800 --> 00:32:27,320
Speaker 1: to Mike novograts about that galaxy digital tike a coal

568
00:32:27,360 --> 00:32:30,400
Speaker 1: glisten to what he has to say. The whole year.

569
00:32:30,440 --> 00:32:32,760
Speaker 1: I thought we'd be a thirty thousand fifty thousand range

570
00:32:33,720 --> 00:32:37,440
Speaker 1: in bitcoin risk to the upside, not the downside. Um.

571
00:32:37,920 --> 00:32:41,040
Speaker 1: But I think you know, five years out, if bitcoin

572
00:32:41,120 --> 00:32:44,080
Speaker 1: is not at five thousand, I'm wrong. On the adoption cycle,

573
00:32:44,760 --> 00:32:49,840
Speaker 1: Uh right, we see an adoption cycle that accelerates. Bitcoin

574
00:32:49,960 --> 00:32:52,600
Speaker 1: grew so much faster last year, crypto grew than the

575
00:32:52,680 --> 00:32:56,960
Speaker 1: Internet did its best years in the nineties. Spencer, is

576
00:32:57,000 --> 00:33:02,440
Speaker 1: it at five thousand dollars and five years exactly? I'm

577
00:33:02,440 --> 00:33:05,000
Speaker 1: not really sure. And look, Novo and I might agree

578
00:33:05,040 --> 00:33:07,760
Speaker 1: on many different points, but um, I agree with them here.

579
00:33:07,840 --> 00:33:11,160
Speaker 1: I think that people overthink bitcoin and crypto as a

580
00:33:11,240 --> 00:33:14,080
Speaker 1: whole um quite often. I mean, realistically, I think the

581
00:33:14,160 --> 00:33:16,440
Speaker 1: easiest thing to do here, to do well is to

582
00:33:16,520 --> 00:33:18,840
Speaker 1: have a long term time horizon. You know what's going

583
00:33:18,920 --> 00:33:21,680
Speaker 1: to happen in any particular day, week, month, or even year.

584
00:33:22,240 --> 00:33:24,960
Speaker 1: UM is extraordinarily uncertain UM, and a lot of people

585
00:33:25,000 --> 00:33:28,240
Speaker 1: I think preferred to do themselves brain damage trying to

586
00:33:28,320 --> 00:33:31,280
Speaker 1: anticipate those market moves, when I think the easier solution

587
00:33:31,360 --> 00:33:33,800
Speaker 1: here is to have a small percentage of your portfolio

588
00:33:34,120 --> 00:33:36,200
Speaker 1: and orient towards the long term, and that could be

589
00:33:36,600 --> 00:33:38,760
Speaker 1: just bitcoin or could be a basket of crypto assets.

590
00:33:39,360 --> 00:33:42,640
Speaker 1: What's your take on President Biden's executive order and the

591
00:33:42,840 --> 00:33:46,080
Speaker 1: role that crypto is playing in the war on Ukraine.

592
00:33:46,200 --> 00:33:48,760
Speaker 1: Do you think we are looking at a turning point

593
00:33:48,920 --> 00:33:55,720
Speaker 1: in history for this cryptocurrency and cryptocurrency in general. Potentially,

594
00:33:55,800 --> 00:33:59,320
Speaker 1: I certainly think the crypto is a component of this discussion.

595
00:33:59,800 --> 00:34:02,320
Speaker 1: Right think that what's been made very clear, not just

596
00:34:02,520 --> 00:34:04,800
Speaker 1: with the war in Ukraine, but I think across global

597
00:34:04,880 --> 00:34:07,560
Speaker 1: events over the past couple of years has really become

598
00:34:07,640 --> 00:34:12,480
Speaker 1: evident that money and financial services have become weaponized. And

599
00:34:12,840 --> 00:34:16,640
Speaker 1: sometimes that weaponization is used for things that UM the

600
00:34:17,160 --> 00:34:20,640
Speaker 1: would probably have broad support um and other times there's opposition.

601
00:34:21,080 --> 00:34:26,200
Speaker 1: But regardless, there is demand for a neutral a political

602
00:34:26,520 --> 00:34:30,120
Speaker 1: money and infrastructure, and that's what bitcoin and public block

603
00:34:30,239 --> 00:34:33,600
Speaker 1: gains represent. But there's also a concern that cryptocurrency and

604
00:34:33,640 --> 00:34:38,080
Speaker 1: digital assets could be weaponized, for example, that Russian oligarchs

605
00:34:38,120 --> 00:34:40,960
Speaker 1: could use it to circumvent sanctions. Does that concern you?

606
00:34:42,719 --> 00:34:45,760
Speaker 1: It does not concern me. Most of the the U S. Governments,

607
00:34:45,800 --> 00:34:49,680
Speaker 1: and for an experts on these agree that there is

608
00:34:49,880 --> 00:34:53,360
Speaker 1: no material portion of money laundering or sanctions evasion that

609
00:34:53,440 --> 00:34:57,200
Speaker 1: occurs via cryptoto um so I don't think it's a

610
00:34:57,239 --> 00:35:00,719
Speaker 1: material issue. And clearly the vast majorities it occurs in

611
00:35:01,040 --> 00:35:06,319
Speaker 1: hard assets. It's like gold or in paper U S. Dollars. Alright, Spencer, folk,

612
00:35:06,360 --> 00:35:08,160
Speaker 1: are always good to have you here. Thank you for

613
00:35:08,280 --> 00:35:19,520
Speaker 1: giving us a long term view blockchain capital, getting back

614
00:35:19,640 --> 00:35:21,759
Speaker 1: to travel, more and more people looking to get away,

615
00:35:21,760 --> 00:35:24,040
Speaker 1: and who better to talk about that and more than

616
00:35:24,120 --> 00:35:28,080
Speaker 1: the CFO of Away herself, Katherine dun Levy, who joins

617
00:35:28,160 --> 00:35:30,600
Speaker 1: us now, Catherine, thank you so much for joining us.

618
00:35:30,640 --> 00:35:32,719
Speaker 1: So obviously there's a lot of conflicting things happening in

619
00:35:32,800 --> 00:35:34,920
Speaker 1: the world right now. In some places, it seems like

620
00:35:34,960 --> 00:35:37,480
Speaker 1: the pandemic is nearing an end. In China, for example,

621
00:35:37,520 --> 00:35:40,600
Speaker 1: we're seeing a spike in infections. In the United States,

622
00:35:40,680 --> 00:35:45,239
Speaker 1: you're seeing businesses reopen and this effort to try to

623
00:35:45,320 --> 00:35:49,200
Speaker 1: live with the virus no matter how badly it comes back.

624
00:35:49,560 --> 00:35:52,160
Speaker 1: How is this all impacting travel in the months and

625
00:35:52,280 --> 00:35:57,680
Speaker 1: year ahead. While travel is seeing a really terrific recovery.

626
00:35:57,760 --> 00:35:59,760
Speaker 1: You can see it in t s A throutput numbers

627
00:35:59,760 --> 00:36:02,959
Speaker 1: that are almost back to pre pandemic levels. AM Track

628
00:36:03,080 --> 00:36:06,680
Speaker 1: four million more passengers of books this year than last year,

629
00:36:06,719 --> 00:36:10,520
Speaker 1: and even road trips. More road trips are being taken

630
00:36:10,680 --> 00:36:14,120
Speaker 1: these days. So people are just wanting to get out.

631
00:36:14,960 --> 00:36:17,759
Speaker 1: And I think it's important to note Emily that the

632
00:36:17,920 --> 00:36:22,040
Speaker 1: definition of travel has really changed post pandemic. Travel can

633
00:36:22,080 --> 00:36:25,960
Speaker 1: still be a trip across the country or across the world, perhaps,

634
00:36:26,040 --> 00:36:28,920
Speaker 1: but it can just as easily be a trip or

635
00:36:28,960 --> 00:36:31,919
Speaker 1: a hike to Upstate New York, for example, walk around

636
00:36:31,920 --> 00:36:34,120
Speaker 1: the block, or even just going to the gym. People

637
00:36:34,239 --> 00:36:36,600
Speaker 1: are getting out of their house and with a way,

638
00:36:36,640 --> 00:36:39,840
Speaker 1: are making the products that are inspiring all those journeys.

639
00:36:40,880 --> 00:36:43,839
Speaker 1: Is what's happening in China a concern to you, though,

640
00:36:44,000 --> 00:36:47,080
Speaker 1: I mean, obviously it's a massive country. You know, there's

641
00:36:47,080 --> 00:36:51,440
Speaker 1: a strict they're more restrictive lockdown measures. You know, what

642
00:36:51,520 --> 00:36:55,680
Speaker 1: are you taking away from that? Well? I think that again,

643
00:36:55,840 --> 00:37:00,360
Speaker 1: people view travel as a critical part of their self

644
00:37:00,480 --> 00:37:03,080
Speaker 1: care routine, and so they're going to find a way

645
00:37:03,160 --> 00:37:05,959
Speaker 1: to travel. It will just be different. They're gonna find

646
00:37:06,160 --> 00:37:09,640
Speaker 1: the ways to travel that are safe for them. So no,

647
00:37:09,840 --> 00:37:13,400
Speaker 1: it's not concerned me. How has this all impacted a

648
00:37:13,520 --> 00:37:16,480
Speaker 1: ways business? I know you've launched some new products over

649
00:37:16,560 --> 00:37:19,640
Speaker 1: the last couple of years, but you know, obviously you

650
00:37:19,680 --> 00:37:22,880
Speaker 1: still need a suitcase whether you're going to driving to

651
00:37:22,960 --> 00:37:27,160
Speaker 1: a national park or flying across the country. Right so away,

652
00:37:27,880 --> 00:37:30,760
Speaker 1: we have a lot of a lot of momentum. Every

653
00:37:30,960 --> 00:37:35,480
Speaker 1: quarter and month of last year we saw an increase

654
00:37:35,560 --> 00:37:39,800
Speaker 1: in demand. In fact, in the fourth quarter of demand

655
00:37:39,960 --> 00:37:43,080
Speaker 1: exceeded pre pandemic levels. And we just closed the books

656
00:37:43,200 --> 00:37:45,239
Speaker 1: of February and I'm happy to tell you that our

657
00:37:45,280 --> 00:37:50,800
Speaker 1: revenue was up over compared to prepidemic levels. How is

658
00:37:50,880 --> 00:37:54,040
Speaker 1: a way adapting to the pandemic or what have you

659
00:37:54,239 --> 00:37:58,400
Speaker 1: learned from the last two years about maybe how to

660
00:37:58,480 --> 00:38:01,759
Speaker 1: be more nimble and next two years? Well, you know,

661
00:38:01,880 --> 00:38:04,720
Speaker 1: we just kept going during the pandemic. As you mentioned,

662
00:38:04,800 --> 00:38:08,239
Speaker 1: we launched new products of pet Carrier, we launched a

663
00:38:08,520 --> 00:38:11,840
Speaker 1: new store in Seattle, and we took the time to

664
00:38:12,600 --> 00:38:16,520
Speaker 1: write a long range plan that positions us for future

665
00:38:16,560 --> 00:38:20,160
Speaker 1: growth no matter what happens. And so we have put

666
00:38:20,280 --> 00:38:23,840
Speaker 1: in place great supply chain strategies that allow us to

667
00:38:24,000 --> 00:38:27,360
Speaker 1: build inventory and have it close to the consumer so

668
00:38:27,520 --> 00:38:30,000
Speaker 1: that no matter what happens, we will be able to

669
00:38:30,640 --> 00:38:35,279
Speaker 1: meet consumer demand. And that's exactly why our results are

670
00:38:35,320 --> 00:38:39,160
Speaker 1: so strong. And what about the rise in inflation and

671
00:38:39,320 --> 00:38:42,040
Speaker 1: gas prices and how that's going to hit consumer pocketbooks?

672
00:38:42,080 --> 00:38:44,560
Speaker 1: This travel going to be the first thing to go

673
00:38:45,320 --> 00:38:49,360
Speaker 1: or no, because people haven't been able to do it

674
00:38:49,480 --> 00:38:52,000
Speaker 1: for so long. Yeah, it's a good question, and we've

675
00:38:52,040 --> 00:38:55,040
Speaker 1: spent a lot of time talking to our consumers about that,

676
00:38:55,440 --> 00:38:58,320
Speaker 1: and what they're telling us is that again it's a

677
00:38:58,440 --> 00:39:01,160
Speaker 1: part of their self care routine and it has moved

678
00:39:01,400 --> 00:39:06,080
Speaker 1: up in their share of wallet and fort of people

679
00:39:06,480 --> 00:39:10,080
Speaker 1: expect to spend more even with the current economic and

680
00:39:10,640 --> 00:39:15,520
Speaker 1: unknown conditions for are spending more than they did um

681
00:39:16,880 --> 00:39:21,480
Speaker 1: before the pandemic on travel. All right, well, certainly going

682
00:39:21,560 --> 00:39:24,840
Speaker 1: to be an interesting set of months and year ahead.

683
00:39:25,080 --> 00:39:28,279
Speaker 1: Katherine Dunlevy, CFO of AWAY, thanks so much for joining

684
00:39:28,400 --> 00:39:31,000
Speaker 1: us to share your view and wants to come And

685
00:39:31,120 --> 00:39:33,520
Speaker 1: that does it for this edition of Bloomberg Technology. You

686
00:39:33,560 --> 00:39:36,160
Speaker 1: can join us tomorrow. We'll be joined by A. A. Kantorovich,

687
00:39:36,280 --> 00:39:39,399
Speaker 1: head of Institutional Coverage and falcon X to talk about

688
00:39:39,520 --> 00:39:41,960
Speaker 1: all things crypto and much more. And don't forget to

689
00:39:42,040 --> 00:39:45,040
Speaker 1: check out our new podcast. You'll find it on the terminal,

690
00:39:45,120 --> 00:39:48,280
Speaker 1: of course, and online. You can find it at Apple, Spotify,

691
00:39:48,440 --> 00:39:51,360
Speaker 1: I Heart, and basically wherever you get your podcasts of

692
00:39:51,520 --> 00:39:53,600
Speaker 1: Emily Chang. This is Bloomberg