1 00:00:02,360 --> 00:00:05,680 Speaker 1: From the heart of where innovation, money and power collive 2 00:00:06,440 --> 00:00:11,000 Speaker 1: in Silicon Vallet and beyond. This is Bloomberg Technology with 3 00:00:11,039 --> 00:00:27,120 Speaker 1: Emily Jay. I'm Emily Track in San Francisco, and this 4 00:00:27,160 --> 00:00:29,960 Speaker 1: is Bloomberg Technology. Coming up the next hour. A tumultuous 5 00:00:30,040 --> 00:00:33,320 Speaker 1: may for markets ended almost exactly where it started. What 6 00:00:33,360 --> 00:00:36,600 Speaker 1: does it mean to tech valuations in summer months to come? 7 00:00:36,800 --> 00:00:40,840 Speaker 1: We will discuss and could online dating be the one 8 00:00:40,960 --> 00:00:43,400 Speaker 1: market that will be spared. We'll talk to an analyst 9 00:00:43,400 --> 00:00:47,519 Speaker 1: who says companies like Bumble, Tinder, and Hinge our recession proof. 10 00:00:48,200 --> 00:00:50,680 Speaker 1: Plus from where the next COVID wave will hit, to 11 00:00:50,800 --> 00:00:53,240 Speaker 1: just how high inflation will go to the winners of 12 00:00:53,320 --> 00:00:55,840 Speaker 1: the Grammys. A new predictions market lets you bet on 13 00:00:56,360 --> 00:00:59,560 Speaker 1: just about anything. We're going to bet a controversial exchange 14 00:01:00,040 --> 00:01:04,840 Speaker 1: that's actually legal for now. And finally, the Supreme Court 15 00:01:04,920 --> 00:01:09,320 Speaker 1: just blocked a Texas law that could transform Twitter and Meta. 16 00:01:09,560 --> 00:01:12,840 Speaker 1: We'll have a report live from Washington. All of that 17 00:01:12,880 --> 00:01:14,479 Speaker 1: in a moment, But first, let's get a look at 18 00:01:14,520 --> 00:01:17,840 Speaker 1: the markets and stocks in particular, Tech ending may almost 19 00:01:17,840 --> 00:01:20,080 Speaker 1: exactly where they started this month. I want to stick 20 00:01:20,080 --> 00:01:24,039 Speaker 1: with the markets now and specifically talk tech with Michael 21 00:01:24,040 --> 00:01:27,680 Speaker 1: Wolfe of Activate. Michael, always good to have you back 22 00:01:27,720 --> 00:01:30,160 Speaker 1: here with us. So look, what do you think all 23 00:01:30,200 --> 00:01:32,040 Speaker 1: the fuss was about. We saw the ups, we saw 24 00:01:32,080 --> 00:01:33,399 Speaker 1: the downs, and then at the end of the month 25 00:01:33,440 --> 00:01:35,440 Speaker 1: we're back right where we started. Well, I mean, part 26 00:01:35,440 --> 00:01:39,480 Speaker 1: of this it reflects that investors are concerned that the 27 00:01:39,600 --> 00:01:42,200 Speaker 1: growth rates are slowing down. It's not as if these 28 00:01:42,240 --> 00:01:47,040 Speaker 1: businesses aren't growing quickly. And yes they're concerned about rates, 29 00:01:47,080 --> 00:01:50,600 Speaker 1: but to a large extent, it's it's all this is. 30 00:01:50,720 --> 00:01:53,640 Speaker 1: This is a correction. It's not a bubble bursting. And 31 00:01:53,680 --> 00:01:58,080 Speaker 1: in fact, when you people keep making this comparison to 32 00:02:00,120 --> 00:02:03,440 Speaker 1: thousand and they're saying, oh, it's it's another wave of this. 33 00:02:03,560 --> 00:02:06,960 Speaker 1: But in reality, though that we have companies that have 34 00:02:07,200 --> 00:02:11,359 Speaker 1: real profits, that have real businesses and um and in 35 00:02:11,480 --> 00:02:14,680 Speaker 1: the tech bubble in the in the early two thousands, 36 00:02:14,760 --> 00:02:18,520 Speaker 1: what we had was business plans and not a lot 37 00:02:18,560 --> 00:02:22,320 Speaker 1: of revenue and certainly not earnings. Here's a question is 38 00:02:22,360 --> 00:02:26,080 Speaker 1: it overvalued or not? And if so, what is overvalued? 39 00:02:26,600 --> 00:02:29,000 Speaker 1: I mean, I think we we saw right and left 40 00:02:29,080 --> 00:02:32,800 Speaker 1: the market caps of these companies being driven up, not 41 00:02:32,919 --> 00:02:36,840 Speaker 1: almost almost illogically because they were looking at at tremendous 42 00:02:36,840 --> 00:02:39,880 Speaker 1: growth rates. So if you look at company like Netflix, 43 00:02:39,960 --> 00:02:45,079 Speaker 1: which is down over sixty like Netflix has over two 44 00:02:45,440 --> 00:02:50,600 Speaker 1: fifty million paying subscribers. So it's yes, we've seen a 45 00:02:50,919 --> 00:02:52,959 Speaker 1: we're seeing a correction in the value, but this is 46 00:02:53,000 --> 00:02:56,360 Speaker 1: a substantial business and we're going to expect it to 47 00:02:56,440 --> 00:02:58,799 Speaker 1: see it continue to grow. Michael, you've been around a 48 00:02:58,840 --> 00:03:01,520 Speaker 1: long time. You've got folks they're comparing this to the 49 00:03:01,600 --> 00:03:05,120 Speaker 1: dot com bust. Do you think then that is totally overblown. 50 00:03:05,240 --> 00:03:08,280 Speaker 1: I think it's totally overblown. It. The reality is that 51 00:03:09,040 --> 00:03:14,000 Speaker 1: these are substantial companies. They've had substantial growth, they are 52 00:03:14,160 --> 00:03:17,240 Speaker 1: leading in a lot of case, they're having modes around 53 00:03:17,280 --> 00:03:20,840 Speaker 1: their business which makes it very difficult to compete against them. 54 00:03:20,880 --> 00:03:24,800 Speaker 1: It's a totally different situation. Now. If you look at 55 00:03:24,840 --> 00:03:27,160 Speaker 1: the two thousand and eight two thousand nine, you see 56 00:03:27,160 --> 00:03:30,079 Speaker 1: a number of companies that were started in those days, 57 00:03:30,639 --> 00:03:32,800 Speaker 1: and it gives you a sense there's likely to be 58 00:03:33,320 --> 00:03:36,760 Speaker 1: So if you looked at Benmo and Square and and others, 59 00:03:36,800 --> 00:03:40,520 Speaker 1: and Airbnb and Uber, they were started in that period 60 00:03:40,600 --> 00:03:43,920 Speaker 1: during the last recession. So we should see a lot 61 00:03:43,960 --> 00:03:48,040 Speaker 1: more innovation and a lot more activity. But but these 62 00:03:48,040 --> 00:03:51,560 Speaker 1: these companies are substantial and they're going to stay substantial. 63 00:03:51,920 --> 00:03:53,920 Speaker 1: What do you think about the M and A market? 64 00:03:54,000 --> 00:03:58,320 Speaker 1: Obviously we've seen this massive Broadcom vm Ware deal. I 65 00:03:58,400 --> 00:04:00,960 Speaker 1: wonder if that is in a league of its own 66 00:04:01,200 --> 00:04:03,680 Speaker 1: on the heels of you know, maybe Twitter, which is 67 00:04:03,720 --> 00:04:06,160 Speaker 1: also a unique situation. And then of course there was 68 00:04:06,240 --> 00:04:09,000 Speaker 1: Microsoft in activision. But are we going to see more 69 00:04:09,480 --> 00:04:14,080 Speaker 1: big time M and A through this tumultuous period. To 70 00:04:14,160 --> 00:04:16,560 Speaker 1: a large extent, it's going to be different. There's gonna 71 00:04:16,600 --> 00:04:19,080 Speaker 1: be different buyers. So one of the places where we 72 00:04:19,080 --> 00:04:21,120 Speaker 1: should see a lot of M and A is in 73 00:04:21,480 --> 00:04:24,960 Speaker 1: enterprise software. So if you look at the take private 74 00:04:25,400 --> 00:04:28,839 Speaker 1: of McAfee, if you look at Salesforce and Slack, those 75 00:04:28,880 --> 00:04:32,840 Speaker 1: are the kinds of acquisitions that we should continue to see. Now. 76 00:04:32,880 --> 00:04:35,680 Speaker 1: One of the things that's also different is we're likely 77 00:04:35,760 --> 00:04:39,640 Speaker 1: to see um more private equity deals. So if you 78 00:04:39,680 --> 00:04:42,839 Speaker 1: look at we have Nielsen's take private at sixteen billion, 79 00:04:43,240 --> 00:04:47,240 Speaker 1: we have UM, we have other businesses like Toma, Bravo's 80 00:04:47,360 --> 00:04:50,680 Speaker 1: purchase of Proofpoint. We're going to see a lot more 81 00:04:50,800 --> 00:04:54,279 Speaker 1: because the market is we're seeing some capitulation in terms 82 00:04:54,279 --> 00:04:57,200 Speaker 1: of pricing, and this is a moment when private equity 83 00:04:57,240 --> 00:05:00,159 Speaker 1: firms can rush in and they can find businesses that 84 00:05:00,279 --> 00:05:04,440 Speaker 1: are that we're way over valued versus a year ago. 85 00:05:04,640 --> 00:05:07,960 Speaker 1: All right, Michael Wolf of Activate, always good to have 86 00:05:08,000 --> 00:05:10,200 Speaker 1: you on the show. Michael, thank you for giving us 87 00:05:10,560 --> 00:05:14,440 Speaker 1: uh the silver lining on some of this stuff. Meantime, 88 00:05:14,480 --> 00:05:20,040 Speaker 1: Taiwan based iPhone maker Han Hi expects supply chain disruptions 89 00:05:20,040 --> 00:05:23,880 Speaker 1: to gradually clear up. At Shanghai slowly opens to trade 90 00:05:24,240 --> 00:05:28,200 Speaker 1: after months of COVID lockdowns, Han high chair Young Lieu 91 00:05:28,600 --> 00:05:32,040 Speaker 1: told shareholders the company is more upbeat now about it 92 00:05:32,960 --> 00:05:36,520 Speaker 1: sales outlook than before. On High, of course, is Apple's 93 00:05:36,960 --> 00:05:49,719 Speaker 1: largest assembly partner, from the outcome of the Grammys to 94 00:05:49,760 --> 00:05:53,600 Speaker 1: the next COVID wave to future SEC commissioners. You can 95 00:05:53,640 --> 00:05:56,279 Speaker 1: now bet on all of these things with call sheet, 96 00:05:56,560 --> 00:05:59,800 Speaker 1: a controversial new type of financial exchange where people can 97 00:05:59,800 --> 00:06:03,880 Speaker 1: play wagers tied to outcomes of real world events. Joining 98 00:06:03,880 --> 00:06:07,599 Speaker 1: me now, Lauana Lopez Laura, Founder and CEO of College Lauana, 99 00:06:07,640 --> 00:06:10,560 Speaker 1: thank you so much for joining us. So first of all, 100 00:06:11,600 --> 00:06:13,760 Speaker 1: some some folks have been trying to push forward these 101 00:06:13,839 --> 00:06:16,640 Speaker 1: kinds of financial markets for years, but it never happened. 102 00:06:17,120 --> 00:06:19,240 Speaker 1: You know, how did you make this work. Yeah, so 103 00:06:19,279 --> 00:06:23,000 Speaker 1: we get this question actually, uh fairly often, and the 104 00:06:23,040 --> 00:06:26,040 Speaker 1: answer isn't what most people expect. It's really about we 105 00:06:26,160 --> 00:06:29,680 Speaker 1: just had I guess, more patience and more resilience and 106 00:06:29,720 --> 00:06:34,000 Speaker 1: we just push through longer. It's a it's a regulatory process. 107 00:06:34,040 --> 00:06:37,320 Speaker 1: It takes a long time innovation, especially in the derivative space. 108 00:06:37,839 --> 00:06:40,000 Speaker 1: It's it's there's a lot of new things, new risks 109 00:06:40,000 --> 00:06:42,440 Speaker 1: that we need to look to and the regulators are 110 00:06:42,520 --> 00:06:45,159 Speaker 1: looking for um and we were diligent through work with 111 00:06:45,200 --> 00:06:48,080 Speaker 1: all of them. For the CFTC, you can think about surveillance, 112 00:06:48,120 --> 00:06:51,760 Speaker 1: customer protection, the contracts themselves, rules, a lot of different 113 00:06:51,760 --> 00:06:54,240 Speaker 1: things that we had to work through and iterate through 114 00:06:54,279 --> 00:06:57,520 Speaker 1: two years. And we really worked hard for two years 115 00:06:57,560 --> 00:06:59,800 Speaker 1: and didn't give up to get to get it for 116 00:06:59,880 --> 00:07:03,480 Speaker 1: the finish line, uh and launch the exchange last year. So, 117 00:07:03,520 --> 00:07:06,599 Speaker 1: for example, the FED has another decision coming up, and 118 00:07:07,000 --> 00:07:09,640 Speaker 1: via cal she you can make a bet on what 119 00:07:09,680 --> 00:07:13,160 Speaker 1: you think the Fed will do. What are your markets 120 00:07:13,480 --> 00:07:16,800 Speaker 1: showing about the fed next move? Yeah, I guess to 121 00:07:17,080 --> 00:07:19,600 Speaker 1: back track and just explain a little bit how the 122 00:07:19,640 --> 00:07:22,920 Speaker 1: markets work, so you can buy yes or no positions 123 00:07:23,000 --> 00:07:26,280 Speaker 1: on whether the market will have something will happen or not, 124 00:07:26,720 --> 00:07:29,440 Speaker 1: and the price goes from zero to one uh selling 125 00:07:29,480 --> 00:07:31,640 Speaker 1: to one if the if the market is correct, if 126 00:07:31,680 --> 00:07:34,960 Speaker 1: your position is correct, um and because the price is 127 00:07:35,000 --> 00:07:37,680 Speaker 1: from zero to one, the price so so like for example, 128 00:07:37,760 --> 00:07:41,600 Speaker 1: sixty cents means there's a six and something will happen, 129 00:07:41,800 --> 00:07:44,760 Speaker 1: So you can really directly translate the price to the 130 00:07:44,760 --> 00:07:47,920 Speaker 1: probability of wou say that price is truth. With the 131 00:07:47,960 --> 00:07:52,160 Speaker 1: FED markets, we have um different markets for every f 132 00:07:52,160 --> 00:07:56,000 Speaker 1: o MC meeting. So for fifty or seventy five basis 133 00:07:56,040 --> 00:07:59,160 Speaker 1: points hikes UM, our markets are saying that for the 134 00:07:59,240 --> 00:08:02,320 Speaker 1: June fo m C meeting we will be seeing fifty 135 00:08:02,440 --> 00:08:06,640 Speaker 1: basis point hyke with chance. The markets are also saying 136 00:08:06,680 --> 00:08:09,840 Speaker 1: that the July meeting will see another fifty basis point 137 00:08:09,920 --> 00:08:13,480 Speaker 1: hype with ninety percentians UM. And across the whole year, 138 00:08:13,920 --> 00:08:18,480 Speaker 1: the markets are expecting ten UM FED FED hikes versus 139 00:08:18,520 --> 00:08:20,160 Speaker 1: I think a couple of months ago it was predicting 140 00:08:20,200 --> 00:08:23,400 Speaker 1: around seven UM, so so definitely a lot of hikes coming. 141 00:08:23,920 --> 00:08:26,600 Speaker 1: So President Biden just you know, unveiled this whole plan 142 00:08:26,640 --> 00:08:29,520 Speaker 1: to keep inflation down. What are your markets say inflation 143 00:08:29,600 --> 00:08:32,000 Speaker 1: is actually gonna do? Right? We also have markets on 144 00:08:32,040 --> 00:08:34,800 Speaker 1: inflation from zero percent to one point two and every 145 00:08:34,960 --> 00:08:37,360 Speaker 1: month of the year, the markets are saying that the 146 00:08:37,400 --> 00:08:40,880 Speaker 1: next inflation print coming out next week will be around 147 00:08:40,960 --> 00:08:44,400 Speaker 1: zero point sixty five percent month over month or over 148 00:08:44,440 --> 00:08:47,559 Speaker 1: the whole year eight point two percent inflation um our. 149 00:08:47,600 --> 00:08:50,640 Speaker 1: Actual markets have have predicted seven out of the eight 150 00:08:51,080 --> 00:08:54,800 Speaker 1: pass inflation prints correctly. Uh so, our our traders have 151 00:08:54,880 --> 00:08:57,320 Speaker 1: not been surprised at all to see the high high 152 00:08:57,480 --> 00:09:00,920 Speaker 1: inflation numbers, um But it's import to say that for 153 00:09:01,000 --> 00:09:03,640 Speaker 1: the rest of the year um SO annualize. For the 154 00:09:03,679 --> 00:09:05,920 Speaker 1: rest of the year, the markets are expecting of around 155 00:09:05,960 --> 00:09:10,160 Speaker 1: four percent annualized in December around three which really is 156 00:09:10,280 --> 00:09:14,440 Speaker 1: around um normal levels, so really expecting inflation to go 157 00:09:14,520 --> 00:09:18,080 Speaker 1: back to normal. Now regulators initially said no to an 158 00:09:18,120 --> 00:09:23,160 Speaker 1: exchange like this, but but recently changed course. Isn't this gambling? 159 00:09:23,480 --> 00:09:26,760 Speaker 1: Why should this be legal? That is a great question, 160 00:09:27,000 --> 00:09:30,160 Speaker 1: um our. We're in exchange the same way that the 161 00:09:30,200 --> 00:09:32,800 Speaker 1: CIME or the New York Stock Exchange are exchanges, and 162 00:09:32,840 --> 00:09:35,440 Speaker 1: you trade events on our exchange the same way you 163 00:09:35,480 --> 00:09:38,040 Speaker 1: trade stocks or futures on CIMME or the New York 164 00:09:38,040 --> 00:09:41,480 Speaker 1: Stock Exchange. We are basically just a trade matching engine 165 00:09:41,600 --> 00:09:44,720 Speaker 1: that matches different people trying to take different positions. So 166 00:09:44,760 --> 00:09:47,680 Speaker 1: if you take our FED markets for example, right, um, 167 00:09:47,920 --> 00:09:50,800 Speaker 1: our markets are a way to trade hedge or get 168 00:09:50,840 --> 00:09:54,720 Speaker 1: exposure to feed events the same way interest rate swaps 169 00:09:54,840 --> 00:09:58,040 Speaker 1: are defined are designed to do, but hours are made 170 00:09:58,040 --> 00:10:01,320 Speaker 1: in an exchange in an accessible and simple way. Um 171 00:10:01,480 --> 00:10:04,839 Speaker 1: we really think that that bringing it to two. People 172 00:10:04,920 --> 00:10:07,640 Speaker 1: have actual risk associated to this, Like if you have 173 00:10:07,800 --> 00:10:10,600 Speaker 1: a student loan tied to the ten year treasury, or 174 00:10:10,640 --> 00:10:12,840 Speaker 1: if you're trying to refinance your home, you have real 175 00:10:13,120 --> 00:10:15,720 Speaker 1: risk associated to the FED raising rates and you should 176 00:10:15,760 --> 00:10:18,320 Speaker 1: have access to the same types of benefits that Wall 177 00:10:18,360 --> 00:10:21,719 Speaker 1: Street does. This isn't gambling. This is finance at it's best. 178 00:10:21,720 --> 00:10:24,599 Speaker 1: It's about hedging risk and getting exposure to to what 179 00:10:24,800 --> 00:10:27,960 Speaker 1: you you have your face risk in your everyday life. Now, 180 00:10:28,040 --> 00:10:30,360 Speaker 1: I'd love to learn a little more about your personal story. 181 00:10:30,400 --> 00:10:34,000 Speaker 1: I know you're from Brazil and you studied bullshoy ballet, 182 00:10:34,080 --> 00:10:36,960 Speaker 1: which I assume was hours a day. How do you 183 00:10:37,040 --> 00:10:40,559 Speaker 1: go from you know, potentially becoming a professional ballerina to 184 00:10:41,040 --> 00:10:46,160 Speaker 1: going to M I T and launching a market startup? Well, 185 00:10:46,200 --> 00:10:48,600 Speaker 1: that is a great question. I definitely have an unconventional 186 00:10:48,880 --> 00:10:51,720 Speaker 1: uh path. Um. Yeah. So I used to be a 187 00:10:51,720 --> 00:10:54,200 Speaker 1: professional ballerina. I used to train, as you said, eight 188 00:10:54,200 --> 00:10:56,920 Speaker 1: hours a day uh in at the Bolshoi Ballet and 189 00:10:56,920 --> 00:10:59,320 Speaker 1: I worked professionally in Austria for a bid and I 190 00:10:59,320 --> 00:11:02,080 Speaker 1: think that really changed and mark how I am as 191 00:11:02,080 --> 00:11:03,800 Speaker 1: a person. I think a lot of discipline and a 192 00:11:03,800 --> 00:11:06,880 Speaker 1: lot of you know, sacrifice and looking two more longer 193 00:11:07,000 --> 00:11:10,240 Speaker 1: term UM payouts versus very short term payouts. I think 194 00:11:10,280 --> 00:11:12,360 Speaker 1: definitely helped with with starting chol ship. But I was 195 00:11:12,360 --> 00:11:15,240 Speaker 1: always fascinated by math and science. Uh So I went 196 00:11:15,280 --> 00:11:17,520 Speaker 1: to m I teach studies CS and math and at 197 00:11:17,520 --> 00:11:20,280 Speaker 1: the very beginning of fascinated by the finest world history 198 00:11:20,320 --> 00:11:23,760 Speaker 1: of markets market structure um. And from then it was 199 00:11:24,240 --> 00:11:26,360 Speaker 1: worked out a couple of hedge funds, but I really 200 00:11:26,400 --> 00:11:29,280 Speaker 1: wanted to make a mark of my own. So UM 201 00:11:29,600 --> 00:11:32,280 Speaker 1: encounter the cow sheet the couchip problem, which for us 202 00:11:32,360 --> 00:11:36,360 Speaker 1: video is people should have the same access people everyday 203 00:11:36,400 --> 00:11:38,680 Speaker 1: business and should have the same access that institutions have 204 00:11:39,160 --> 00:11:42,440 Speaker 1: to hedge risk they have associated to events. Most trading 205 00:11:42,559 --> 00:11:44,839 Speaker 1: is based on events you think rates are going to have, 206 00:11:45,040 --> 00:11:47,000 Speaker 1: like go up. You do this in the stock market. 207 00:11:47,320 --> 00:11:49,640 Speaker 1: We want to bring this to everyday people and let 208 00:11:49,640 --> 00:11:52,520 Speaker 1: them do the same and have the same benefits. UM So, yeah, 209 00:11:52,840 --> 00:11:55,160 Speaker 1: definitely a convoluted story, but but I think it all 210 00:11:55,200 --> 00:11:58,240 Speaker 1: adds up in the end. Last quick question, what's your 211 00:11:58,240 --> 00:12:01,280 Speaker 1: position on crypto? Then? You know, isn't that you know 212 00:12:01,480 --> 00:12:05,200 Speaker 1: a market that's already pretty well established, where you've got 213 00:12:05,280 --> 00:12:08,000 Speaker 1: high risk, high reward. You know, why not put your 214 00:12:08,000 --> 00:12:10,640 Speaker 1: money in crypto instead? That is a great question. I 215 00:12:10,679 --> 00:12:12,760 Speaker 1: think crypto has wiped out a lot of people in 216 00:12:12,800 --> 00:12:15,720 Speaker 1: the past couple of months. You can take the lunar example. 217 00:12:16,040 --> 00:12:19,640 Speaker 1: I think that it needs more regulation. I think a 218 00:12:19,760 --> 00:12:22,600 Speaker 1: very small portion of crypto markets are regulated nowadays, and 219 00:12:22,600 --> 00:12:25,079 Speaker 1: you see a lot of scams just going around of 220 00:12:25,240 --> 00:12:28,120 Speaker 1: like easy twenty yield or something like that, and in 221 00:12:28,160 --> 00:12:29,800 Speaker 1: the end they just use your money and it's really 222 00:12:29,960 --> 00:12:32,800 Speaker 1: people savings. There's like actual victims to this. So I 223 00:12:32,800 --> 00:12:35,280 Speaker 1: really think it needs more regulation and it needs to 224 00:12:35,280 --> 00:12:38,400 Speaker 1: to be brought up, brought into the regulatory oversight in 225 00:12:38,440 --> 00:12:41,920 Speaker 1: the US. UM. I guess that with US, As you said, 226 00:12:41,960 --> 00:12:43,960 Speaker 1: it's like you can also make money and lose money, 227 00:12:43,960 --> 00:12:46,480 Speaker 1: but the difference that we regulated that this won't be 228 00:12:46,480 --> 00:12:49,320 Speaker 1: a systemic risk that older is to explained to people, 229 00:12:49,640 --> 00:12:52,920 Speaker 1: and and regulation brings this fantastic thing which is customer protection. 230 00:12:53,160 --> 00:12:55,120 Speaker 1: All right, I want to love as Laura founder and 231 00:12:55,200 --> 00:13:07,440 Speaker 1: Cello of Calci will keep watching. Thank you well. The U. S. 232 00:13:07,440 --> 00:13:10,600 Speaker 1: Supreme Court has blocked a Texas law that critics say 233 00:13:10,640 --> 00:13:16,200 Speaker 1: would fundamentally transform Twitter and Meta's business by requiring them 234 00:13:16,240 --> 00:13:20,080 Speaker 1: to allow hate speech and extremism. Greg Storm, who covers 235 00:13:20,080 --> 00:13:22,320 Speaker 1: the Supreme Court for Bloomberg, joins us. Now, so, Greg, 236 00:13:22,320 --> 00:13:25,120 Speaker 1: first of all, give us the context on this Texas law, 237 00:13:25,280 --> 00:13:27,600 Speaker 1: which has been moving through the courts, went into effect 238 00:13:27,720 --> 00:13:32,400 Speaker 1: in Texas earlier this month. It did, and the social 239 00:13:32,400 --> 00:13:35,640 Speaker 1: media industry had been very worried about it. The appeals 240 00:13:35,640 --> 00:13:38,280 Speaker 1: court didn't give any explanation for letting the law take 241 00:13:38,320 --> 00:13:41,960 Speaker 1: effect in The social media company said the impact and 242 00:13:42,000 --> 00:13:46,280 Speaker 1: them would be tremendous. They would have to radically change 243 00:13:46,400 --> 00:13:51,440 Speaker 1: their operations uh to remove the ability or to make 244 00:13:51,480 --> 00:13:54,920 Speaker 1: it such that they could no longer essentially moderate content. 245 00:13:55,840 --> 00:13:58,839 Speaker 1: The Supreme Court let that ruling that lower court orders 246 00:13:58,840 --> 00:14:00,840 Speaker 1: stay in effect for a couple of weeks, and now 247 00:14:00,880 --> 00:14:03,080 Speaker 1: finally the Court has intervened and said yes, we're going 248 00:14:03,120 --> 00:14:06,000 Speaker 1: to block that law again. Is there reasoning as to 249 00:14:06,080 --> 00:14:08,760 Speaker 1: why they're blocking a law and what does it mean? 250 00:14:09,080 --> 00:14:12,040 Speaker 1: Not from the full court, we did get a dissenting 251 00:14:12,040 --> 00:14:15,800 Speaker 1: opinion from free conservative justices and interestingly one of the 252 00:14:15,840 --> 00:14:19,480 Speaker 1: liberal justices the second without getting any explanation at all. 253 00:14:19,760 --> 00:14:22,960 Speaker 1: Those three dissenters said they saw this as an affront 254 00:14:22,960 --> 00:14:26,600 Speaker 1: of state sovereignty blocking the law, they would let it 255 00:14:26,680 --> 00:14:28,960 Speaker 1: stay in effect. But from the court as a whole, no, 256 00:14:29,120 --> 00:14:31,400 Speaker 1: we didn't get any explanation. Is this the end of 257 00:14:31,400 --> 00:14:34,320 Speaker 1: the road for this law or does it still have 258 00:14:35,040 --> 00:14:37,920 Speaker 1: you know, an opportunity for for another life. Now it 259 00:14:38,000 --> 00:14:40,960 Speaker 1: still has an opportunity. This just blocks the law while 260 00:14:41,040 --> 00:14:44,640 Speaker 1: the litigation goes forward, and that litigation will go forward 261 00:14:44,720 --> 00:14:48,480 Speaker 1: before that federal appeals court that said the law could 262 00:14:48,480 --> 00:14:51,840 Speaker 1: take effect. So there may be still be some some 263 00:14:51,960 --> 00:14:56,400 Speaker 1: serious fights on the hands of the social media companies 264 00:14:56,440 --> 00:14:59,040 Speaker 1: and their trade groups, which were the ones that that 265 00:14:59,160 --> 00:15:02,120 Speaker 1: suit to challenge into this law. Um. One other thing 266 00:15:02,200 --> 00:15:04,720 Speaker 1: to note here is that there's another law a lot 267 00:15:04,800 --> 00:15:07,640 Speaker 1: like this in Florida. That one was also blocked by 268 00:15:07,640 --> 00:15:10,400 Speaker 1: a federal appeals court last week. So give us some 269 00:15:10,480 --> 00:15:14,160 Speaker 1: examples if this law is upheld, give us some examples 270 00:15:14,200 --> 00:15:16,960 Speaker 1: of what Twitter and Facebook would not be able to 271 00:15:17,000 --> 00:15:20,880 Speaker 1: do that they do. Now, Well, the law says you 272 00:15:20,920 --> 00:15:24,760 Speaker 1: can't engage in what's known as viewpoint discrimination. And what 273 00:15:24,960 --> 00:15:28,200 Speaker 1: that means is you can't say, oh, that's hate speech, 274 00:15:28,240 --> 00:15:30,720 Speaker 1: and because it's hate speech, we're gonna we're gonna take 275 00:15:30,760 --> 00:15:33,760 Speaker 1: that down, We're going to block it. Uh. So the 276 00:15:33,800 --> 00:15:37,760 Speaker 1: social media companies say, we would have to allow neo 277 00:15:37,880 --> 00:15:41,520 Speaker 1: Nazis screeds, we would have to allow anti gay screeds. 278 00:15:42,160 --> 00:15:46,120 Speaker 1: Uh and UM really would not have that ability to 279 00:15:46,160 --> 00:15:50,720 Speaker 1: serve as kind of the traffic cop on their platforms. Okay, 280 00:15:51,000 --> 00:15:54,040 Speaker 1: Greg Store, Bloomberg News, thank you, will continue to follow 281 00:15:54,080 --> 00:15:57,920 Speaker 1: that law. Um, and the Supreme Court's next take all right, 282 00:15:57,960 --> 00:16:01,440 Speaker 1: well by now pay later is a popular option for 283 00:16:01,560 --> 00:16:04,320 Speaker 1: the youngest generation, but as the economy takes a tumble, 284 00:16:04,400 --> 00:16:09,320 Speaker 1: many are struggling to repay all these small loans. Joining 285 00:16:09,400 --> 00:16:13,280 Speaker 1: us now. The CFO of a firm, Michael Linford take 286 00:16:13,280 --> 00:16:15,760 Speaker 1: a listen to him earlier with Blue Maction. Ally, Boss, 287 00:16:16,600 --> 00:16:20,400 Speaker 1: I think it's really important that investors, uh the media 288 00:16:20,800 --> 00:16:23,400 Speaker 1: that uses of our product to understand just how different 289 00:16:23,600 --> 00:16:27,239 Speaker 1: firm is We're different from both the traditional financial institutions 290 00:16:27,240 --> 00:16:30,440 Speaker 1: who offer revolving credit products, and we're different than the 291 00:16:30,520 --> 00:16:33,360 Speaker 1: B N p L competitors that I think are being 292 00:16:33,360 --> 00:16:37,880 Speaker 1: poked out in that particular analysis. Mission go ahead. Yeah, 293 00:16:37,880 --> 00:16:40,400 Speaker 1: a lot of those competitors they've never seen a down 294 00:16:40,400 --> 00:16:43,680 Speaker 1: cycle and we're about to experience something of the sort now. 295 00:16:43,880 --> 00:16:46,640 Speaker 1: So do you think that they're going to experience something 296 00:16:46,640 --> 00:16:49,680 Speaker 1: of a wash out there? I think you're already seeing 297 00:16:49,680 --> 00:16:52,400 Speaker 1: pressure on a lot of these players. Um that you 298 00:16:52,440 --> 00:16:56,320 Speaker 1: have people like a firm who takes our mission and 299 00:16:56,320 --> 00:16:59,320 Speaker 1: our mission has created a business model that makes it 300 00:16:59,360 --> 00:17:02,200 Speaker 1: so that we don't charge ladies, we don't allow consumers 301 00:17:02,280 --> 00:17:05,280 Speaker 1: to revolve on dad, we do not allow to fur interest, 302 00:17:05,600 --> 00:17:08,399 Speaker 1: and these kind of consumer oriented positions in our business 303 00:17:08,400 --> 00:17:10,280 Speaker 1: has made it so that we don't have a choice 304 00:17:10,280 --> 00:17:13,119 Speaker 1: but to underwrite very carefully. We have no way in 305 00:17:13,119 --> 00:17:15,840 Speaker 1: our business model to support consumers who don't pay us back. 306 00:17:16,160 --> 00:17:18,600 Speaker 1: And our most recent quarter we posted unit economics of 307 00:17:18,720 --> 00:17:22,199 Speaker 1: four point seven percent of GMB seventy basis points ahead 308 00:17:22,240 --> 00:17:25,040 Speaker 1: of our long term guidance. We stand out amongst all 309 00:17:25,080 --> 00:17:27,560 Speaker 1: the other players. You have some players who are doing 310 00:17:27,600 --> 00:17:29,879 Speaker 1: headcount reductions to try to save costs in order to 311 00:17:29,920 --> 00:17:32,760 Speaker 1: afford these credit losses, and we're in the opposite position. 312 00:17:32,880 --> 00:17:35,640 Speaker 1: We're very front footed. We're adding to our team because 313 00:17:35,640 --> 00:17:39,280 Speaker 1: our unit economics are an exceptionally strong UH position right 314 00:17:39,320 --> 00:17:41,720 Speaker 1: now because of our world class underwriting, and that's not 315 00:17:41,760 --> 00:17:44,280 Speaker 1: an accident. We had to build that based upon how 316 00:17:44,320 --> 00:17:47,119 Speaker 1: our business model was built from the first day and 317 00:17:47,160 --> 00:17:49,000 Speaker 1: how we treat consumers. You know. The other thing you 318 00:17:49,040 --> 00:17:50,879 Speaker 1: had mentioned too is that you're in a position to 319 00:17:50,960 --> 00:17:54,040 Speaker 1: grow from here, even in a tough environment. What kind 320 00:17:54,040 --> 00:17:57,720 Speaker 1: of hiring plans could you have ahead, especially as you're 321 00:17:57,720 --> 00:18:01,840 Speaker 1: seeing that some of your rivals are cutting their workforce. Yeah, 322 00:18:01,880 --> 00:18:04,040 Speaker 1: we really like our position in the market. You saw 323 00:18:04,840 --> 00:18:07,440 Speaker 1: earlier this month we hired a bunch of engineers from 324 00:18:07,640 --> 00:18:09,680 Speaker 1: a payments company that was having a hard time and 325 00:18:09,920 --> 00:18:12,439 Speaker 1: they were winding up operations. We do this as one 326 00:18:12,440 --> 00:18:15,119 Speaker 1: of the better markets for labor right now, where we 327 00:18:15,240 --> 00:18:18,760 Speaker 1: have a strong need to build great products. We're not 328 00:18:18,800 --> 00:18:22,000 Speaker 1: constrained in terms of our opportunity. We help enable the 329 00:18:22,040 --> 00:18:24,760 Speaker 1: world's fastest growing payment method and we're in the very 330 00:18:24,760 --> 00:18:27,719 Speaker 1: early innings of what our category will become, so we 331 00:18:27,760 --> 00:18:30,240 Speaker 1: need a big team of engineers to go tackle that opportunity, 332 00:18:30,280 --> 00:18:33,000 Speaker 1: and so we're very excited to be able to impressively 333 00:18:33,080 --> 00:18:39,040 Speaker 1: grow our business again responsibly a firm CFO, they're much 334 00:18:39,080 --> 00:18:51,960 Speaker 1: more ahead. This is Bloomberg. Welcome back to Bloomber Technology, 335 00:18:51,960 --> 00:18:54,840 Speaker 1: Emily check in San Francisco. Is another day, another delay 336 00:18:54,960 --> 00:18:58,520 Speaker 1: for Elon Musk SpaceX. The Federal Aviation Administration says it 337 00:18:58,600 --> 00:19:02,560 Speaker 1: now expects to complete and environmental review of the rocket 338 00:19:02,560 --> 00:19:07,080 Speaker 1: maker's Texas facility in mid June. Another pushback, which potentially 339 00:19:07,160 --> 00:19:11,800 Speaker 1: doesn't delays the timeline for Starship Musk's Mars Moonshot. This 340 00:19:11,880 --> 00:19:14,159 Speaker 1: is the fifth time in fact, that the f A 341 00:19:14,240 --> 00:19:16,800 Speaker 1: has postponed the release of this report. From what all 342 00:19:16,880 --> 00:19:21,320 Speaker 1: means are ed Ludlow here with me. So is the 343 00:19:21,359 --> 00:19:23,320 Speaker 1: f A a buying time here? What's going on? It's 344 00:19:23,320 --> 00:19:26,199 Speaker 1: impossible to know. You know, today's May thirty one. I 345 00:19:26,280 --> 00:19:28,199 Speaker 1: was waiting for this because it was the day they 346 00:19:28,200 --> 00:19:30,240 Speaker 1: were due to make a decision, and I wrote it 347 00:19:30,280 --> 00:19:32,360 Speaker 1: down on a piece of paper because I'm not embarrassed 348 00:19:32,359 --> 00:19:34,960 Speaker 1: about that. M They have delayed it five times, and 349 00:19:35,000 --> 00:19:37,880 Speaker 1: the last time we were waiting for this was on nine. 350 00:19:37,880 --> 00:19:39,760 Speaker 1: So I sat here waiting, and they delayed it till 351 00:19:39,800 --> 00:19:43,880 Speaker 1: May thirty one. But it's important because spaces cannot make 352 00:19:43,920 --> 00:19:47,359 Speaker 1: any progress on this. Starship planned the testing phase at 353 00:19:47,440 --> 00:19:50,359 Speaker 1: least until they get clearance from the fair. Now, you 354 00:19:50,400 --> 00:19:53,560 Speaker 1: were on the ground in Boca Chica in February, remember 355 00:19:53,600 --> 00:19:56,480 Speaker 1: that vividly and Elon Musk made it sound like Starship 356 00:19:56,520 --> 00:19:59,080 Speaker 1: was just around the corner, right, And at that time 357 00:19:59,280 --> 00:20:02,080 Speaker 1: he basically expected that the regulatory side of things, this 358 00:20:02,200 --> 00:20:04,440 Speaker 1: environmental review would be done in a couple of months, 359 00:20:04,440 --> 00:20:06,439 Speaker 1: a test flight, the hardware would be ready in a 360 00:20:06,440 --> 00:20:08,760 Speaker 1: couple of months, and he had an even bolder prediction 361 00:20:08,840 --> 00:20:14,560 Speaker 1: for what would happen. Take a listen. It might be 362 00:20:14,600 --> 00:20:17,120 Speaker 1: a few bumps along the road, a bit at all work. Um. 363 00:20:17,160 --> 00:20:23,040 Speaker 1: I feel at this point highly confident that we will 364 00:20:23,040 --> 00:20:28,680 Speaker 1: get to orbit this year classic mask orbital test flight 365 00:20:28,720 --> 00:20:30,439 Speaker 1: by the end of this year. But we don't know 366 00:20:30,480 --> 00:20:33,919 Speaker 1: where we stand now because this key beast keeps getting delayed. Well, 367 00:20:33,960 --> 00:20:35,720 Speaker 1: so that was my next question, what do we know 368 00:20:35,760 --> 00:20:38,520 Speaker 1: about where we stand with Starship? So you've seen the video, 369 00:20:38,520 --> 00:20:40,560 Speaker 1: I think if the Mr Director will play it again, 370 00:20:40,600 --> 00:20:43,680 Speaker 1: the explosions, the kind of successful test they've only really 371 00:20:43,720 --> 00:20:46,199 Speaker 1: done hops off the ground, and what Starship needs to 372 00:20:46,240 --> 00:20:48,280 Speaker 1: do is an orbital test flight. That's kind of the 373 00:20:48,320 --> 00:20:52,840 Speaker 1: big milestone moment where it breaches as atmosphere, comes back 374 00:20:52,840 --> 00:20:55,560 Speaker 1: down and lands again. That's we're waiting for Gwin shot. Well, 375 00:20:55,640 --> 00:20:58,080 Speaker 1: who's the president CEO said it could happen in June. 376 00:20:58,720 --> 00:21:01,040 Speaker 1: Doesn't seem like that if the f A decisions not 377 00:21:01,119 --> 00:21:05,600 Speaker 1: Dune now until June. Meantime, of course, you've got SpaceX 378 00:21:05,640 --> 00:21:08,840 Speaker 1: generally going from straight to strength, pulling off you know, 379 00:21:08,920 --> 00:21:13,680 Speaker 1: a lot of successes. So as of Friday, Starlink there 380 00:21:14,440 --> 00:21:18,920 Speaker 1: space satellite constellation based internet service is available in all 381 00:21:19,000 --> 00:21:22,240 Speaker 1: seven continents. He expanded to Africa as of Friday. That's 382 00:21:22,280 --> 00:21:27,040 Speaker 1: quite an achievement. And today this may first really important 383 00:21:27,080 --> 00:21:31,159 Speaker 1: date ten years ago, first unmanned Dragon missions I s S, 384 00:21:31,320 --> 00:21:34,399 Speaker 1: two years ago, first man one. They're dominating you know, 385 00:21:34,440 --> 00:21:37,640 Speaker 1: this industry. But we really care about Starship because it's 386 00:21:37,640 --> 00:21:39,360 Speaker 1: like you said, it's the Mars shot of the moon 387 00:21:39,400 --> 00:21:42,480 Speaker 1: shot all right, at Law, thank you, well, keep watchally, 388 00:21:42,480 --> 00:21:46,360 Speaker 1: you'll keep us posted. Well. Today mark the first day 389 00:21:46,359 --> 00:21:49,200 Speaker 1: on the job for the new CEO of match Coupernard Kimp. 390 00:21:49,240 --> 00:21:53,560 Speaker 1: He is leaving Zinger, where he's been president. Since he's 391 00:21:53,600 --> 00:21:55,679 Speaker 1: taking over for Shardubi, who has been at the company 392 00:21:55,680 --> 00:21:58,320 Speaker 1: for the last sixteen years. It is a pivotal time 393 00:21:58,359 --> 00:22:00,439 Speaker 1: for dating apps, especially as we are heard from the 394 00:22:00,440 --> 00:22:03,439 Speaker 1: pandemic and much of the world faces inflation. I am 395 00:22:03,520 --> 00:22:06,080 Speaker 1: joined now by Sea Kajuria and analyst at Evercres, who 396 00:22:06,160 --> 00:22:09,159 Speaker 1: just published a deep dive on not only Match but 397 00:22:09,280 --> 00:22:11,840 Speaker 1: also Bumble. So, so what do you make of this 398 00:22:11,880 --> 00:22:15,320 Speaker 1: new leadership and also coming from the gaming space to 399 00:22:15,960 --> 00:22:20,040 Speaker 1: online dating. Is that a good thing? Well, we'll have 400 00:22:20,160 --> 00:22:23,680 Speaker 1: to see. I Uh, he's done a good job at Zinga. 401 00:22:23,800 --> 00:22:28,080 Speaker 1: Matches slightly different but also similar in a lot of ways. Uh. 402 00:22:28,119 --> 00:22:31,040 Speaker 1: There are two things that are good I think are 403 00:22:31,560 --> 00:22:35,080 Speaker 1: one that there are some similarities between what he did 404 00:22:35,080 --> 00:22:38,439 Speaker 1: at Zinga and at Match portfolio of assets and a 405 00:22:38,520 --> 00:22:42,080 Speaker 1: global business, both in favor of what matches strategy is. 406 00:22:42,480 --> 00:22:44,639 Speaker 1: The other thing that's good is that shar is not 407 00:22:44,760 --> 00:22:46,760 Speaker 1: really leaving. She is going to be part of the 408 00:22:46,800 --> 00:22:50,240 Speaker 1: board and she will be working UM as an advisor 409 00:22:50,280 --> 00:22:55,119 Speaker 1: to UM to Bernard. And also it's not the CEO 410 00:22:55,320 --> 00:22:59,919 Speaker 1: change is not uh a turnaround story. It's not like 411 00:23:00,080 --> 00:23:03,800 Speaker 1: Peloton where you have to rework everything. This is a 412 00:23:03,880 --> 00:23:07,359 Speaker 1: functioning business. It's a strong leader in online dating and 413 00:23:07,359 --> 00:23:10,080 Speaker 1: its category of global business. And he's going to come 414 00:23:10,119 --> 00:23:12,560 Speaker 1: in and it's going to be business for usual at 415 00:23:12,600 --> 00:23:14,800 Speaker 1: least for the near term. And then as he settled in, 416 00:23:15,280 --> 00:23:18,600 Speaker 1: he will throw in his own strategy as he gets comfortable. 417 00:23:18,600 --> 00:23:21,000 Speaker 1: So I don't think there will be huge turbulence in 418 00:23:21,000 --> 00:23:24,040 Speaker 1: the in the business as he comes on board. So 419 00:23:24,119 --> 00:23:27,320 Speaker 1: let's talk about your new report, because you're basically saying 420 00:23:27,400 --> 00:23:29,920 Speaker 1: that you think online dating and as we go through 421 00:23:29,920 --> 00:23:36,240 Speaker 1: all of this market folatility using online dating is recession proof. Why, well, 422 00:23:36,720 --> 00:23:40,320 Speaker 1: largely recession proof. The the beauty of UH or the 423 00:23:40,400 --> 00:23:43,760 Speaker 1: challenge of being in consumer internet, is that none of 424 00:23:43,800 --> 00:23:48,160 Speaker 1: our names are recession proof. Really, so they're they're certainly 425 00:23:48,520 --> 00:23:51,240 Speaker 1: impacted by inflation, but when it compared to the rest 426 00:23:51,280 --> 00:23:55,080 Speaker 1: of our coverage, yes, they're largely resilient. Um And our 427 00:23:55,160 --> 00:23:58,600 Speaker 1: survey shows that almost eighty percent of those who are 428 00:23:58,640 --> 00:24:01,560 Speaker 1: actively looking for a relate reationship are going to use 429 00:24:02,160 --> 00:24:05,439 Speaker 1: the online dating apps just as much or even more 430 00:24:05,480 --> 00:24:07,880 Speaker 1: over the next call it six months to twelve months. 431 00:24:07,920 --> 00:24:10,240 Speaker 1: And so that tells me that usage is not going 432 00:24:10,320 --> 00:24:14,639 Speaker 1: to change um. The second read through was that if 433 00:24:14,800 --> 00:24:18,000 Speaker 1: there is inflationary pressure and there is a recession in 434 00:24:18,040 --> 00:24:23,160 Speaker 1: the next six months, most of them, of our survey respondents, 435 00:24:23,280 --> 00:24:25,560 Speaker 1: so that they would be willing to pay about seventeen 436 00:24:25,560 --> 00:24:27,880 Speaker 1: dollars a month on average for an online dating app, 437 00:24:28,080 --> 00:24:30,159 Speaker 1: and that's where we are today, So it's not that 438 00:24:30,200 --> 00:24:32,479 Speaker 1: they would pay any less. Now, the question is, well, 439 00:24:32,520 --> 00:24:35,119 Speaker 1: Bumble is slightly more expensive, so would that come from Bumble? 440 00:24:35,160 --> 00:24:36,920 Speaker 1: And I don't think so. I don't think that may 441 00:24:36,920 --> 00:24:40,120 Speaker 1: be the case either, because Bumble has several different tail ones. 442 00:24:40,760 --> 00:24:43,800 Speaker 1: So when you look at the online dating landscape and 443 00:24:43,840 --> 00:24:47,160 Speaker 1: the options out there, is you know, Bumble, our Tinder, 444 00:24:47,359 --> 00:24:50,119 Speaker 1: hinge Match, Are they all more or less equal in 445 00:24:50,119 --> 00:24:53,719 Speaker 1: your view? Or do some stand out over others? I 446 00:24:53,720 --> 00:24:57,200 Speaker 1: think some stand out over others. What our survey also 447 00:24:57,240 --> 00:25:01,400 Speaker 1: showed is that Bumble is really gaining market share. And 448 00:25:01,600 --> 00:25:05,240 Speaker 1: the one of the biggest investor questions into the key 449 00:25:05,280 --> 00:25:08,240 Speaker 1: one print was what where's where's the market share shift? 450 00:25:08,359 --> 00:25:10,480 Speaker 1: Is it is Bumble gaining share from Tinder? Is it 451 00:25:10,560 --> 00:25:13,480 Speaker 1: something else? Our survey shows that really Tinder continues to 452 00:25:13,600 --> 00:25:16,119 Speaker 1: be the leader in the market, but Bumble is gaining 453 00:25:16,200 --> 00:25:19,560 Speaker 1: share from plenty of fisient e harmony, so other apps 454 00:25:19,680 --> 00:25:22,720 Speaker 1: that have been around but may not be as powerful 455 00:25:23,160 --> 00:25:26,760 Speaker 1: as a bumble and so in the United States, our 456 00:25:26,800 --> 00:25:29,440 Speaker 1: survey shows it's Tinder as number one, Bumble as a 457 00:25:29,560 --> 00:25:32,840 Speaker 1: clear number two, and Hinge is also gaining ground to 458 00:25:32,960 --> 00:25:36,240 Speaker 1: now number four, back from number seven last year. So 459 00:25:37,400 --> 00:25:40,199 Speaker 1: not all apps are created equal, even though the target 460 00:25:40,440 --> 00:25:44,160 Speaker 1: target market may be slightly different depending on your background 461 00:25:45,080 --> 00:25:48,439 Speaker 1: or one's background. But more Match and Bumble are doing 462 00:25:48,560 --> 00:25:51,399 Speaker 1: with the product is certainly superior to some of the 463 00:25:51,480 --> 00:25:54,080 Speaker 1: other apps out there. Well, engagement is one thing, but 464 00:25:54,160 --> 00:25:57,639 Speaker 1: getting people to pay for it is the other. You know, 465 00:25:57,800 --> 00:25:59,560 Speaker 1: which of these do you think is the best at 466 00:25:59,680 --> 00:26:02,880 Speaker 1: at generating that that revenue and getting users to pay 467 00:26:02,960 --> 00:26:05,040 Speaker 1: up for something that that that many of the big 468 00:26:05,200 --> 00:26:09,480 Speaker 1: should be free. Yeah, the great question. All of Almost 469 00:26:09,520 --> 00:26:12,600 Speaker 1: all of these are freemium models at different prices at 470 00:26:12,640 --> 00:26:16,760 Speaker 1: different price points, but our survey shows that most users 471 00:26:16,920 --> 00:26:21,840 Speaker 1: are willing to pay for Tender, e Harmony, Match, Bumble, 472 00:26:22,040 --> 00:26:24,480 Speaker 1: and Hinge. These are the top five paid four apps. 473 00:26:24,520 --> 00:26:26,840 Speaker 1: And some of the reasons for e Harmony and matches 474 00:26:26,880 --> 00:26:30,880 Speaker 1: also because of the demographics their older uh older age 475 00:26:30,920 --> 00:26:34,199 Speaker 1: folks who may have greater savings and are more serious 476 00:26:34,240 --> 00:26:36,840 Speaker 1: about relationship and that's where the fair conversion is slightly 477 00:26:36,920 --> 00:26:40,040 Speaker 1: greater in those apps. Um. But at the same time, 478 00:26:40,160 --> 00:26:44,920 Speaker 1: on average, our survey shows it's about conversion, which maybe 479 00:26:45,040 --> 00:26:47,800 Speaker 1: is a little skewed because I know that Bumble's conversion 480 00:26:47,880 --> 00:26:51,480 Speaker 1: rate is slightly lower, But there's the point still holds 481 00:26:51,560 --> 00:26:54,080 Speaker 1: that there's long runway for growth in terms of how 482 00:26:54,160 --> 00:26:56,080 Speaker 1: many users they are that used for free and then 483 00:26:56,160 --> 00:26:59,600 Speaker 1: how many the potential there is that they can convert. 484 00:26:59,680 --> 00:27:01,440 Speaker 1: And the other thing I'll add is it's not only 485 00:27:01,520 --> 00:27:05,159 Speaker 1: subscription there now also adding all our card services, you 486 00:27:05,240 --> 00:27:07,840 Speaker 1: get buy a feature, uh instead of just paying for 487 00:27:08,119 --> 00:27:10,560 Speaker 1: a monthly subscription, and you can just pay as you 488 00:27:10,640 --> 00:27:13,680 Speaker 1: go as you use more features. And that's also gaining share. 489 00:27:14,560 --> 00:27:18,680 Speaker 1: So what are the the risks to the online dating sector. Well, 490 00:27:18,800 --> 00:27:22,320 Speaker 1: the risk is that the reopening across geographies is not 491 00:27:22,480 --> 00:27:24,960 Speaker 1: the same. So for example, Japan is number two market 492 00:27:25,040 --> 00:27:27,720 Speaker 1: for Match and that has been very slow in terms 493 00:27:27,760 --> 00:27:31,240 Speaker 1: of seeing the reopening and people actually meeting in person, 494 00:27:31,320 --> 00:27:33,080 Speaker 1: and that has been a drag on their growth rate. 495 00:27:33,160 --> 00:27:38,040 Speaker 1: Because uh, Bumble pairs and pump Pairs and Tender are 496 00:27:38,119 --> 00:27:41,159 Speaker 1: both really big in Japan. So one of the biggest 497 00:27:41,240 --> 00:27:45,440 Speaker 1: risk is is the is the reopening curve across different geographies. 498 00:27:45,800 --> 00:27:50,120 Speaker 1: The second risk is that not all demographics are the same, 499 00:27:50,240 --> 00:27:54,400 Speaker 1: and so if there is inflationary pressure, it is possible 500 00:27:54,440 --> 00:27:57,800 Speaker 1: that some apps may lose share over others um and 501 00:27:57,920 --> 00:28:00,000 Speaker 1: that will be the question of which once people decide 502 00:28:00,000 --> 00:28:05,280 Speaker 1: a compete versus let's go Alright Cajuria, analyst at ever Core, 503 00:28:05,440 --> 00:28:19,959 Speaker 1: thanks so much. What to time now for our crypto 504 00:28:20,000 --> 00:28:22,760 Speaker 1: report and Bitcoin higher for a fourth day, the big 505 00:28:23,160 --> 00:28:26,720 Speaker 1: bouncing back above thirty dollars and then some as it 506 00:28:26,760 --> 00:28:28,680 Speaker 1: recovers from a sharp decline in the past three weeks. 507 00:28:28,720 --> 00:28:32,160 Speaker 1: But it is still down in May. Our crypto contributor 508 00:28:32,200 --> 00:28:34,960 Speaker 1: Snale bossi here with more so Shanale. When you look 509 00:28:35,000 --> 00:28:37,840 Speaker 1: at the broader equities picture, we're kind of back where 510 00:28:37,880 --> 00:28:39,720 Speaker 1: we started here at the end of May, but with 511 00:28:39,840 --> 00:28:45,400 Speaker 1: Bitcoin still significantly down. Yes, what goes around keeps going around, Emily, 512 00:28:45,440 --> 00:28:47,440 Speaker 1: it goes around and around. So when we talk about 513 00:28:47,440 --> 00:28:50,480 Speaker 1: bitcoin here, yeah, it's I mean the price movements here 514 00:28:50,600 --> 00:28:52,720 Speaker 1: on On one hand, you have a lot of people saying, okay, 515 00:28:52,760 --> 00:28:54,480 Speaker 1: it's time to build this, time to put our heads 516 00:28:54,520 --> 00:28:56,800 Speaker 1: down in a down market and and really, you know, 517 00:28:57,080 --> 00:28:59,200 Speaker 1: make projects that will last for long term. So what 518 00:28:59,360 --> 00:29:02,200 Speaker 1: where are we? Bitcoin has really risen in the last week. 519 00:29:02,240 --> 00:29:05,000 Speaker 1: It has not risen past thirty two thousand, but it 520 00:29:05,120 --> 00:29:07,960 Speaker 1: is above that thirty thousand level. We are down meaningfully 521 00:29:07,960 --> 00:29:09,880 Speaker 1: on the month, as you said, about sixteen percent, while 522 00:29:09,880 --> 00:29:12,440 Speaker 1: the SMP has not moved much at all. The questions 523 00:29:12,480 --> 00:29:15,160 Speaker 1: moving forward will be about correlations. I also want to 524 00:29:15,240 --> 00:29:19,440 Speaker 1: draw attention Emily here to Ethereum. Why because Ethereum is 525 00:29:19,680 --> 00:29:22,240 Speaker 1: also down not just on the month, but on the 526 00:29:22,400 --> 00:29:24,720 Speaker 1: week as well. So you have seen a divergence in 527 00:29:24,800 --> 00:29:29,280 Speaker 1: the last week between the two large cryptocurrencies. The questions 528 00:29:29,320 --> 00:29:32,479 Speaker 1: moving forward here, well, how will they react in relation 529 00:29:32,520 --> 00:29:34,400 Speaker 1: to each other and react to the rest of the 530 00:29:34,440 --> 00:29:37,720 Speaker 1: crypto universe and in reaction to a lot of the 531 00:29:37,800 --> 00:29:40,400 Speaker 1: macro environment that we've been watching so closely this month. 532 00:29:40,480 --> 00:29:42,560 Speaker 1: And you know we've been talking about those venture funds. 533 00:29:42,600 --> 00:29:45,400 Speaker 1: How will they deploy money in this continuously down market? 534 00:29:46,040 --> 00:29:49,000 Speaker 1: All right, Shanali, thanks much. We're gonna hear more on 535 00:29:49,240 --> 00:29:52,440 Speaker 1: this from Alice Kaleen, founder managing partner at the bitcoin 536 00:29:52,480 --> 00:29:55,560 Speaker 1: focused venture firm still Mark, who talked about all of 537 00:29:55,600 --> 00:29:58,320 Speaker 1: this and more with my colleagues Matt Miller and Kaylee Lines. 538 00:29:58,520 --> 00:30:03,000 Speaker 1: Take a listen. Bitcoin companies historically have really thrived in 539 00:30:03,080 --> 00:30:05,840 Speaker 1: crypto winters. It's the time to build, it's the time 540 00:30:05,880 --> 00:30:09,080 Speaker 1: to be focused on sound tech and bitcoin. Is that so? 541 00:30:09,440 --> 00:30:13,160 Speaker 1: I mean, we've seen Bitcoin moving back towards the lion 542 00:30:13,280 --> 00:30:16,440 Speaker 1: share of market cap. It's so fascinating that bitcoin can be. 543 00:30:16,840 --> 00:30:20,040 Speaker 1: I think right now forty five percent of the market 544 00:30:20,120 --> 00:30:23,240 Speaker 1: cap of all crypto and we're talking about twenty thousand 545 00:30:23,880 --> 00:30:31,040 Speaker 1: um some coins. Is this not an existential crisis for crypto, 546 00:30:31,200 --> 00:30:34,800 Speaker 1: for bitcoins, for bitcoin, for bitcoin. So I think that 547 00:30:34,920 --> 00:30:38,920 Speaker 1: bitcoint so Bitcoin's masscot is the honey badger. And what 548 00:30:39,040 --> 00:30:41,880 Speaker 1: that represents to the community is that bitcoin as a 549 00:30:42,000 --> 00:30:46,000 Speaker 1: sound tech sort of hasn't cared about what's happening around it. 550 00:30:46,120 --> 00:30:49,600 Speaker 1: It operates very independently, and in fact, that's the purpose 551 00:30:49,680 --> 00:30:54,120 Speaker 1: of the protocol. Bitcoin was invented. It was emergent of 552 00:30:54,320 --> 00:30:57,440 Speaker 1: two decades of work on how to build an open 553 00:30:57,640 --> 00:31:01,720 Speaker 1: and fair financial system that served the underbanked and the 554 00:31:01,840 --> 00:31:05,040 Speaker 1: unbanked in the same way that it served the wealthy 555 00:31:05,080 --> 00:31:09,200 Speaker 1: and privileged. And so bitcoin and bitcoin builders are generally 556 00:31:09,280 --> 00:31:13,160 Speaker 1: really heads down. Now. I think something interesting that's happening 557 00:31:13,240 --> 00:31:16,320 Speaker 1: today that you see reflected in the markets, in the 558 00:31:16,400 --> 00:31:19,120 Speaker 1: crypto markets and in the bitcoin market as well as 559 00:31:19,160 --> 00:31:21,920 Speaker 1: in the Broado macro environment, is that there's a collision 560 00:31:21,960 --> 00:31:25,880 Speaker 1: of two things. Bitcoin is cyclical, It's cycles have been 561 00:31:26,000 --> 00:31:30,360 Speaker 1: historically driven by having se affect miners, and so we 562 00:31:30,440 --> 00:31:32,800 Speaker 1: see about a three to four year cycle for bitcoin, 563 00:31:32,880 --> 00:31:35,560 Speaker 1: which has an impact on the rest of crypto of course, 564 00:31:36,000 --> 00:31:39,480 Speaker 1: But now we've also seen a macro economic downturn and 565 00:31:39,560 --> 00:31:42,480 Speaker 1: bitcoin trades as a risk on asset currently. I think 566 00:31:42,560 --> 00:31:45,600 Speaker 1: that over the long term that will change, but today 567 00:31:45,720 --> 00:31:48,400 Speaker 1: that's the case, and so these forces are at play 568 00:31:48,480 --> 00:31:51,200 Speaker 1: and how we see um what we see happening with 569 00:31:51,280 --> 00:31:56,160 Speaker 1: bitcoin's volatility. However, if we look back historically to two 570 00:31:56,280 --> 00:32:01,240 Speaker 1: thousand and eight and another example of acrow a challenging 571 00:32:01,320 --> 00:32:05,200 Speaker 1: macro environment, what we saw then was that new paradigms 572 00:32:05,280 --> 00:32:09,320 Speaker 1: introduced by cloud and mobile were really powerful tail winds 573 00:32:09,400 --> 00:32:12,080 Speaker 1: for fledgling company. Are we going to see, by the way, 574 00:32:12,080 --> 00:32:16,920 Speaker 1: at least um any new way of is proof of 575 00:32:17,160 --> 00:32:20,520 Speaker 1: work going to be a thing of the past, or 576 00:32:20,640 --> 00:32:23,560 Speaker 1: is it still the only trustworthy way to maintain the blockchain. 577 00:32:24,880 --> 00:32:27,080 Speaker 1: Proof of work is a thing of the future, so 578 00:32:27,280 --> 00:32:31,400 Speaker 1: it's it's the only trustworthy way to maintain a decentralized 579 00:32:31,520 --> 00:32:35,960 Speaker 1: and fair payments and financial system. And that's that's bitcoin. 580 00:32:36,320 --> 00:32:39,560 Speaker 1: But the economics of mining, economics of proof of work 581 00:32:40,080 --> 00:32:45,440 Speaker 1: incentivized investment major investment in sustainable energy. We know that 582 00:32:45,680 --> 00:32:50,160 Speaker 1: today the sustainable energy represents about fifty eight percent of 583 00:32:50,280 --> 00:32:54,160 Speaker 1: all energy used for mining. And that's the sixty year 584 00:32:54,200 --> 00:32:59,360 Speaker 1: of your growth, So increase from Q one. Now. The 585 00:32:59,480 --> 00:33:02,560 Speaker 1: fact a bitcoin mining has been able to so quickly 586 00:33:02,640 --> 00:33:06,840 Speaker 1: transition to a sustainable energy source as the dominant source, 587 00:33:07,360 --> 00:33:10,160 Speaker 1: I hope will be an example for other sectors to follow. 588 00:33:11,960 --> 00:33:15,480 Speaker 1: At last, Colleen their founder and managing partner at still Mark, 589 00:33:16,360 --> 00:33:18,960 Speaker 1: coming up the future of a cloud growth. Going to 590 00:33:19,000 --> 00:33:21,960 Speaker 1: talk about how market volatility is impacting the cloud and 591 00:33:22,360 --> 00:33:24,720 Speaker 1: the next big trends in cloud and software ahead with 592 00:33:24,800 --> 00:33:55,560 Speaker 1: Greylock partner Jerry Chen. This is Bloomberg. We're seeing that 593 00:33:55,920 --> 00:33:58,760 Speaker 1: the market is entering valat has some volatility in different 594 00:33:58,800 --> 00:34:02,080 Speaker 1: parts of the world, but technology is seen as helping 595 00:34:02,280 --> 00:34:07,520 Speaker 1: organizations no address supply chain shortages of customers better get 596 00:34:07,600 --> 00:34:11,319 Speaker 1: online digitally and so demand for cloud remains very strong. 597 00:34:11,440 --> 00:34:15,920 Speaker 1: For US, Google Cloud chief Thomas carrying their forecasting clouds 598 00:34:16,000 --> 00:34:19,400 Speaker 1: growth in the midst of chopp eat market conditions. Was 599 00:34:19,440 --> 00:34:22,600 Speaker 1: certainly a banner year for cloud investing, with total VC 600 00:34:22,760 --> 00:34:26,879 Speaker 1: funding hitting fifty point three billion dollars. Our next guest 601 00:34:26,960 --> 00:34:29,320 Speaker 1: has a forecast on where all that funding will go. 602 00:34:29,960 --> 00:34:32,439 Speaker 1: In this week's Teconomics, I want to bring in Jerry 603 00:34:32,520 --> 00:34:36,400 Speaker 1: chen Now from Graylock Partners, So Jerry share your forecast 604 00:34:36,640 --> 00:34:40,040 Speaker 1: with us. Hey, I'm like, thanks for having me back. Look, 605 00:34:40,360 --> 00:34:43,360 Speaker 1: I think Tom's is right. In a volatile market and 606 00:34:43,400 --> 00:34:46,399 Speaker 1: a commuracy right now, cloud actually is going to see 607 00:34:46,480 --> 00:34:49,959 Speaker 1: increased boat in a market revenue rights two hundred billion 608 00:34:50,080 --> 00:34:52,600 Speaker 1: run rate through all the big three or four cloud providers, 609 00:34:52,840 --> 00:34:56,160 Speaker 1: but also from startups. We're seeing fifty billion plus last 610 00:34:56,280 --> 00:35:00,200 Speaker 1: year in cloud investment by vcs Graylock included. But think 611 00:35:00,239 --> 00:35:03,080 Speaker 1: the emphasises see going forward is a lot around two areas. 612 00:35:03,320 --> 00:35:05,320 Speaker 1: Security continues to be a big deal in the cloud. 613 00:35:05,640 --> 00:35:08,279 Speaker 1: Number two cost savers. So as we see kind of 614 00:35:08,320 --> 00:35:12,359 Speaker 1: this next market, governance, developer tools, data tools will all 615 00:35:12,440 --> 00:35:14,960 Speaker 1: continue to grow, but really focus on how to save 616 00:35:15,000 --> 00:35:19,239 Speaker 1: our customers money. So how do you think this market 617 00:35:19,360 --> 00:35:22,319 Speaker 1: volatility will impact the broader cloud landscape. Obviously we heard 618 00:35:22,360 --> 00:35:24,960 Speaker 1: Google Cloud CEO Thomas carry in there, but it's hard 619 00:35:25,000 --> 00:35:28,640 Speaker 1: not to believe that, you know, this isn't going to 620 00:35:28,800 --> 00:35:33,359 Speaker 1: impact how big customers are spending their money. I would 621 00:35:33,400 --> 00:35:36,680 Speaker 1: say big customers the music cloud grows about twenty year 622 00:35:36,719 --> 00:35:38,640 Speaker 1: a year in terms of compound at a growth rate, 623 00:35:38,719 --> 00:35:40,840 Speaker 1: and the big customers will continue to sped. And like 624 00:35:40,960 --> 00:35:43,279 Speaker 1: I said earlier, the two or three errors are seeing 625 00:35:43,360 --> 00:35:46,239 Speaker 1: around our security for sure. For example, I think we 626 00:35:46,280 --> 00:35:49,000 Speaker 1: saw over seven billion dollars in VC funding go into 627 00:35:49,040 --> 00:35:52,439 Speaker 1: security startups. The big cloud customers will, can you span 628 00:35:52,520 --> 00:35:55,680 Speaker 1: on security companies for example, Abnormal Security, one of the 629 00:35:55,760 --> 00:35:58,120 Speaker 1: Grellic Protfoya companies, just raised a ton of money last 630 00:35:58,200 --> 00:36:02,000 Speaker 1: year for email and a security number two. I think 631 00:36:02,120 --> 00:36:05,360 Speaker 1: cloud customers will can you spend money on things like data? 632 00:36:05,719 --> 00:36:07,520 Speaker 1: So we saw like Snowflake continues to do well in 633 00:36:07,520 --> 00:36:10,120 Speaker 1: the public market, data breaks continues to do well in 634 00:36:10,160 --> 00:36:13,479 Speaker 1: the private market. But increasingly startups in the data bricks 635 00:36:13,520 --> 00:36:16,439 Speaker 1: and snowplate ecosystem will be focused on how to save 636 00:36:16,560 --> 00:36:19,560 Speaker 1: customers money around data costs. So I think the big 637 00:36:19,680 --> 00:36:22,680 Speaker 1: three continue to grow. I think security and data and 638 00:36:22,800 --> 00:36:27,040 Speaker 1: AI continue to grow, but increasingly a focus on customer 639 00:36:27,120 --> 00:36:29,840 Speaker 1: spending and enterprise spending and how to reduce costs for 640 00:36:29,880 --> 00:36:31,760 Speaker 1: the next two or three years would be a big focus. 641 00:36:32,400 --> 00:36:35,359 Speaker 1: So how would you characterize VC sentiment? I mean we've 642 00:36:35,360 --> 00:36:38,960 Speaker 1: been hearing from vcs. You know, turl back, batten down 643 00:36:39,000 --> 00:36:43,440 Speaker 1: the hatches. You know, you might have to take evaluation, haircut, 644 00:36:43,520 --> 00:36:45,439 Speaker 1: you might not be able to raise your next round 645 00:36:45,480 --> 00:36:48,439 Speaker 1: when you thought you would. How would you characterize your 646 00:36:48,520 --> 00:36:54,279 Speaker 1: sentiment broadly? And then that sentiment when it comes to cloud. Sure, 647 00:36:54,440 --> 00:36:56,719 Speaker 1: if you look at the data from I think Carter 648 00:36:56,880 --> 00:36:59,680 Speaker 1: and pitch Book and the other data sets out there, 649 00:37:00,120 --> 00:37:03,560 Speaker 1: Series A valuation, you're down from the year ago. I 650 00:37:03,600 --> 00:37:06,759 Speaker 1: think Series C, Serie D financing valuation, you're down from 651 00:37:06,760 --> 00:37:09,680 Speaker 1: a year ago. And for sure, we're seeing a tightening 652 00:37:09,800 --> 00:37:12,880 Speaker 1: of the venture market towards a bunch of ideas. But 653 00:37:12,960 --> 00:37:15,600 Speaker 1: I would say my personal sentiment, graylock sentiment, and the 654 00:37:15,680 --> 00:37:18,440 Speaker 1: center of our companies here is Look, if you have 655 00:37:19,360 --> 00:37:22,719 Speaker 1: a distinct value add like a hard return on investment 656 00:37:22,840 --> 00:37:26,080 Speaker 1: for a cloud company, and that is emily either securing 657 00:37:26,120 --> 00:37:30,320 Speaker 1: the company through like security products, firewall products, UM, improving 658 00:37:30,400 --> 00:37:32,920 Speaker 1: the digital business of the business of the company like 659 00:37:33,440 --> 00:37:36,760 Speaker 1: AI or a machine learning to help transform transform the business, 660 00:37:37,200 --> 00:37:40,400 Speaker 1: or three saving your customers money. So if you can 661 00:37:40,440 --> 00:37:45,399 Speaker 1: reduce cloud spend, reduced storage spend, reduce data spend as 662 00:37:45,440 --> 00:37:48,000 Speaker 1: a startup, you can have a hard or a I 663 00:37:48,320 --> 00:37:50,560 Speaker 1: and you're actually gonna pop to the top of a 664 00:37:50,840 --> 00:37:53,680 Speaker 1: CIOs wish list. So it's saying, in the past two 665 00:37:53,760 --> 00:37:55,960 Speaker 1: or three years, we've seen a lot of great ideas 666 00:37:56,120 --> 00:37:58,560 Speaker 1: thrown out there, but in the next two years, we're 667 00:37:58,600 --> 00:38:02,759 Speaker 1: gonna see a fewer. Your company's really focus on UM, 668 00:38:02,840 --> 00:38:06,160 Speaker 1: saving money, improving the digital economy. Because if you're doing 669 00:38:06,239 --> 00:38:09,719 Speaker 1: wellness market show really hard r o I, Emily, you're 670 00:38:09,760 --> 00:38:12,240 Speaker 1: gonna get more budget and more awareness from your customers. 671 00:38:12,280 --> 00:38:14,279 Speaker 1: So I think you're seeing a separation the market. The 672 00:38:14,360 --> 00:38:17,120 Speaker 1: great companies will get more of the customer said, and 673 00:38:17,200 --> 00:38:19,560 Speaker 1: the tier two tier three companies will struggle to raise 674 00:38:19,800 --> 00:38:21,600 Speaker 1: because they don't have a real hard r o I 675 00:38:21,800 --> 00:38:26,480 Speaker 1: for the customers. So we're saying, look, would you say 676 00:38:26,520 --> 00:38:30,360 Speaker 1: that trend also extends to hiring and and and layoffs 677 00:38:30,400 --> 00:38:34,160 Speaker 1: to me, because we've seen hiring freezes and and layoffs 678 00:38:34,360 --> 00:38:37,239 Speaker 1: kind of across the board. Yeah, I think a lot 679 00:38:37,280 --> 00:38:39,760 Speaker 1: of companies are looking at their burn rates and realizing 680 00:38:39,800 --> 00:38:42,759 Speaker 1: that their economics were just upside down, right, So hey, 681 00:38:43,040 --> 00:38:46,400 Speaker 1: the burn rage not sustainable. Uh. Where the capital markets 682 00:38:46,480 --> 00:38:49,719 Speaker 1: are right now aren't guaranteed they're gonna raise either up 683 00:38:49,760 --> 00:38:53,160 Speaker 1: valuation or even flat valuation. So we're seeing a lot 684 00:38:53,200 --> 00:38:56,839 Speaker 1: of companies say, hey, I'd rather be uh slightly conservative, 685 00:38:57,320 --> 00:38:59,640 Speaker 1: save my money from the next not one year runway, 686 00:38:59,719 --> 00:39:02,520 Speaker 1: but two years of runway until the capital markets and 687 00:39:02,600 --> 00:39:05,800 Speaker 1: vendroom markets get a little bit more predictable, because I 688 00:39:05,920 --> 00:39:09,240 Speaker 1: think just like public stock market hates anscertainty, the private 689 00:39:09,280 --> 00:39:12,680 Speaker 1: markets around vendroom companies and startups also hate anserdity. So 690 00:39:12,800 --> 00:39:15,120 Speaker 1: until we have a lot more aberdainity of what like 691 00:39:15,239 --> 00:39:18,040 Speaker 1: the Series B, Serious C, Series D Financis look like, 692 00:39:18,520 --> 00:39:19,800 Speaker 1: you know, a lot of startups are gonna be a 693 00:39:19,800 --> 00:39:22,839 Speaker 1: little more conservative. But that said, if there's a good 694 00:39:23,000 --> 00:39:25,480 Speaker 1: r o I on their spend on sales and market emily, 695 00:39:25,680 --> 00:39:28,880 Speaker 1: they're gonna continue. Higher sales, reps, continue higher engineers, the 696 00:39:28,960 --> 00:39:31,080 Speaker 1: good comes to do well. But I think we just 697 00:39:31,160 --> 00:39:34,879 Speaker 1: need a little more clarity where the markets going. Jerry Chen, 698 00:39:35,360 --> 00:39:37,680 Speaker 1: Great Luck Partners, Great to have you back with us. Jerry, 699 00:39:37,719 --> 00:39:40,240 Speaker 1: thanks for giving us a view on the cloud ahead. 700 00:39:41,160 --> 00:39:43,680 Speaker 1: And that does it for this edition of Bloomberg Technology 701 00:39:43,719 --> 00:39:46,120 Speaker 1: will be right back here tomorrow. I'll be joined by 702 00:39:46,200 --> 00:39:49,239 Speaker 1: Resta Show, Johnny founder of Girls Who Code, and David 703 00:39:49,320 --> 00:39:52,440 Speaker 1: Kirkpatrick to talk about that new Supreme Court ruling on 704 00:39:52,520 --> 00:39:55,960 Speaker 1: the Texas social media law. That's tomorrow. This is Bloomerk. 705 00:40:00,840 --> 00:40:02,520 Speaker 1: Keep the sat N