WEBVTT - Online Dating and the Texas Social Media Law 0:00:02.360 --> 0:00:05.680 From the heart of where innovation, money and power collive 0:00:06.440 --> 0:00:11.000 in Silicon Vallet and beyond. This is Bloomberg Technology with 0:00:11.039 --> 0:00:27.120 Emily Jay. I'm Emily Track in San Francisco, and this 0:00:27.160 --> 0:00:29.960 is Bloomberg Technology. Coming up the next hour. A tumultuous 0:00:30.040 --> 0:00:33.320 may for markets ended almost exactly where it started. What 0:00:33.360 --> 0:00:36.600 does it mean to tech valuations in summer months to come? 0:00:36.800 --> 0:00:40.840 We will discuss and could online dating be the one 0:00:40.960 --> 0:00:43.400 market that will be spared. We'll talk to an analyst 0:00:43.400 --> 0:00:47.519 who says companies like Bumble, Tinder, and Hinge our recession proof. 0:00:48.200 --> 0:00:50.680 Plus from where the next COVID wave will hit, to 0:00:50.800 --> 0:00:53.240 just how high inflation will go to the winners of 0:00:53.320 --> 0:00:55.840 the Grammys. A new predictions market lets you bet on 0:00:56.360 --> 0:00:59.560 just about anything. We're going to bet a controversial exchange 0:01:00.040 --> 0:01:04.840 that's actually legal for now. And finally, the Supreme Court 0:01:04.920 --> 0:01:09.320 just blocked a Texas law that could transform Twitter and Meta. 0:01:09.560 --> 0:01:12.840 We'll have a report live from Washington. All of that 0:01:12.880 --> 0:01:14.479 in a moment, But first, let's get a look at 0:01:14.520 --> 0:01:17.840 the markets and stocks in particular, Tech ending may almost 0:01:17.840 --> 0:01:20.080 exactly where they started this month. I want to stick 0:01:20.080 --> 0:01:24.039 with the markets now and specifically talk tech with Michael 0:01:24.040 --> 0:01:27.680 Wolfe of Activate. Michael, always good to have you back 0:01:27.720 --> 0:01:30.160 here with us. So look, what do you think all 0:01:30.200 --> 0:01:32.040 the fuss was about. We saw the ups, we saw 0:01:32.080 --> 0:01:33.399 the downs, and then at the end of the month 0:01:33.440 --> 0:01:35.440 we're back right where we started. Well, I mean, part 0:01:35.440 --> 0:01:39.480 of this it reflects that investors are concerned that the 0:01:39.600 --> 0:01:42.200 growth rates are slowing down. It's not as if these 0:01:42.240 --> 0:01:47.040 businesses aren't growing quickly. And yes they're concerned about rates, 0:01:47.080 --> 0:01:50.600 but to a large extent, it's it's all this is. 0:01:50.720 --> 0:01:53.640 This is a correction. It's not a bubble bursting. And 0:01:53.680 --> 0:01:58.080 in fact, when you people keep making this comparison to 0:02:00.120 --> 0:02:03.440 thousand and they're saying, oh, it's it's another wave of this. 0:02:03.560 --> 0:02:06.960 But in reality, though that we have companies that have 0:02:07.200 --> 0:02:11.359 real profits, that have real businesses and um and in 0:02:11.480 --> 0:02:14.680 the tech bubble in the in the early two thousands, 0:02:14.760 --> 0:02:18.520 what we had was business plans and not a lot 0:02:18.560 --> 0:02:22.320 of revenue and certainly not earnings. Here's a question is 0:02:22.360 --> 0:02:26.080 it overvalued or not? And if so, what is overvalued? 0:02:26.600 --> 0:02:29.000 I mean, I think we we saw right and left 0:02:29.080 --> 0:02:32.800 the market caps of these companies being driven up, not 0:02:32.919 --> 0:02:36.840 almost almost illogically because they were looking at at tremendous 0:02:36.840 --> 0:02:39.880 growth rates. So if you look at company like Netflix, 0:02:39.960 --> 0:02:45.079 which is down over sixty like Netflix has over two 0:02:45.440 --> 0:02:50.600 fifty million paying subscribers. So it's yes, we've seen a 0:02:50.919 --> 0:02:52.959 we're seeing a correction in the value, but this is 0:02:53.000 --> 0:02:56.360 a substantial business and we're going to expect it to 0:02:56.440 --> 0:02:58.799 see it continue to grow. Michael, you've been around a 0:02:58.840 --> 0:03:01.520 long time. You've got folks they're comparing this to the 0:03:01.600 --> 0:03:05.120 dot com bust. Do you think then that is totally overblown. 0:03:05.240 --> 0:03:08.280 I think it's totally overblown. It. The reality is that 0:03:09.040 --> 0:03:14.000 these are substantial companies. They've had substantial growth, they are 0:03:14.160 --> 0:03:17.240 leading in a lot of case, they're having modes around 0:03:17.280 --> 0:03:20.840 their business which makes it very difficult to compete against them. 0:03:20.880 --> 0:03:24.800 It's a totally different situation. Now. If you look at 0:03:24.840 --> 0:03:27.160 the two thousand and eight two thousand nine, you see 0:03:27.160 --> 0:03:30.079 a number of companies that were started in those days, 0:03:30.639 --> 0:03:32.800 and it gives you a sense there's likely to be 0:03:33.320 --> 0:03:36.760 So if you looked at Benmo and Square and and others, 0:03:36.800 --> 0:03:40.520 and Airbnb and Uber, they were started in that period 0:03:40.600 --> 0:03:43.920 during the last recession. So we should see a lot 0:03:43.960 --> 0:03:48.040 more innovation and a lot more activity. But but these 0:03:48.040 --> 0:03:51.560 these companies are substantial and they're going to stay substantial. 0:03:51.920 --> 0:03:53.920 What do you think about the M and A market? 0:03:54.000 --> 0:03:58.320 Obviously we've seen this massive Broadcom vm Ware deal. I 0:03:58.400 --> 0:04:00.960 wonder if that is in a league of its own 0:04:01.200 --> 0:04:03.680 on the heels of you know, maybe Twitter, which is 0:04:03.720 --> 0:04:06.160 also a unique situation. And then of course there was 0:04:06.240 --> 0:04:09.000 Microsoft in activision. But are we going to see more 0:04:09.480 --> 0:04:14.080 big time M and A through this tumultuous period. To 0:04:14.160 --> 0:04:16.560 a large extent, it's going to be different. There's gonna 0:04:16.600 --> 0:04:19.080 be different buyers. So one of the places where we 0:04:19.080 --> 0:04:21.120 should see a lot of M and A is in 0:04:21.480 --> 0:04:24.960 enterprise software. So if you look at the take private 0:04:25.400 --> 0:04:28.839 of McAfee, if you look at Salesforce and Slack, those 0:04:28.880 --> 0:04:32.840 are the kinds of acquisitions that we should continue to see. Now. 0:04:32.880 --> 0:04:35.680 One of the things that's also different is we're likely 0:04:35.760 --> 0:04:39.640 to see um more private equity deals. So if you 0:04:39.680 --> 0:04:42.839 look at we have Nielsen's take private at sixteen billion, 0:04:43.240 --> 0:04:47.240 we have UM, we have other businesses like Toma, Bravo's 0:04:47.360 --> 0:04:50.680 purchase of Proofpoint. We're going to see a lot more 0:04:50.800 --> 0:04:54.279 because the market is we're seeing some capitulation in terms 0:04:54.279 --> 0:04:57.200 of pricing, and this is a moment when private equity 0:04:57.240 --> 0:05:00.159 firms can rush in and they can find businesses that 0:05:00.279 --> 0:05:04.440 are that we're way over valued versus a year ago. 0:05:04.640 --> 0:05:07.960 All right, Michael Wolf of Activate, always good to have 0:05:08.000 --> 0:05:10.200 you on the show. Michael, thank you for giving us 0:05:10.560 --> 0:05:14.440 uh the silver lining on some of this stuff. Meantime, 0:05:14.480 --> 0:05:20.040 Taiwan based iPhone maker Han Hi expects supply chain disruptions 0:05:20.040 --> 0:05:23.880 to gradually clear up. At Shanghai slowly opens to trade 0:05:24.240 --> 0:05:28.200 after months of COVID lockdowns, Han high chair Young Lieu 0:05:28.600 --> 0:05:32.040 told shareholders the company is more upbeat now about it 0:05:32.960 --> 0:05:36.520 sales outlook than before. On High, of course, is Apple's 0:05:36.960 --> 0:05:49.719 largest assembly partner, from the outcome of the Grammys to 0:05:49.760 --> 0:05:53.600 the next COVID wave to future SEC commissioners. You can 0:05:53.640 --> 0:05:56.279 now bet on all of these things with call sheet, 0:05:56.560 --> 0:05:59.800 a controversial new type of financial exchange where people can 0:05:59.800 --> 0:06:03.880 play wagers tied to outcomes of real world events. Joining 0:06:03.880 --> 0:06:07.599 me now, Lauana Lopez Laura, Founder and CEO of College Lauana, 0:06:07.640 --> 0:06:10.560 thank you so much for joining us. So first of all, 0:06:11.600 --> 0:06:13.760 some some folks have been trying to push forward these 0:06:13.839 --> 0:06:16.640 kinds of financial markets for years, but it never happened. 0:06:17.120 --> 0:06:19.240 You know, how did you make this work. Yeah, so 0:06:19.279 --> 0:06:23.000 we get this question actually, uh fairly often, and the 0:06:23.040 --> 0:06:26.040 answer isn't what most people expect. It's really about we 0:06:26.160 --> 0:06:29.680 just had I guess, more patience and more resilience and 0:06:29.720 --> 0:06:34.000 we just push through longer. It's a it's a regulatory process. 0:06:34.040 --> 0:06:37.320 It takes a long time innovation, especially in the derivative space. 0:06:37.839 --> 0:06:40.000 It's it's there's a lot of new things, new risks 0:06:40.000 --> 0:06:42.440 that we need to look to and the regulators are 0:06:42.520 --> 0:06:45.159 looking for um and we were diligent through work with 0:06:45.200 --> 0:06:48.080 all of them. For the CFTC, you can think about surveillance, 0:06:48.120 --> 0:06:51.760 customer protection, the contracts themselves, rules, a lot of different 0:06:51.760 --> 0:06:54.240 things that we had to work through and iterate through 0:06:54.279 --> 0:06:57.520 two years. And we really worked hard for two years 0:06:57.560 --> 0:06:59.800 and didn't give up to get to get it for 0:06:59.880 --> 0:07:03.480 the finish line, uh and launch the exchange last year. So, 0:07:03.520 --> 0:07:06.599 for example, the FED has another decision coming up, and 0:07:07.000 --> 0:07:09.640 via cal she you can make a bet on what 0:07:09.680 --> 0:07:13.160 you think the Fed will do. What are your markets 0:07:13.480 --> 0:07:16.800 showing about the fed next move? Yeah, I guess to 0:07:17.080 --> 0:07:19.600 back track and just explain a little bit how the 0:07:19.640 --> 0:07:22.920 markets work, so you can buy yes or no positions 0:07:23.000 --> 0:07:26.280 on whether the market will have something will happen or not, 0:07:26.720 --> 0:07:29.440 and the price goes from zero to one uh selling 0:07:29.480 --> 0:07:31.640 to one if the if the market is correct, if 0:07:31.680 --> 0:07:34.960 your position is correct, um and because the price is 0:07:35.000 --> 0:07:37.680 from zero to one, the price so so like for example, 0:07:37.760 --> 0:07:41.600 sixty cents means there's a six and something will happen, 0:07:41.800 --> 0:07:44.760 So you can really directly translate the price to the 0:07:44.760 --> 0:07:47.920 probability of wou say that price is truth. With the 0:07:47.960 --> 0:07:52.160 FED markets, we have um different markets for every f 0:07:52.160 --> 0:07:56.000 o MC meeting. So for fifty or seventy five basis 0:07:56.040 --> 0:07:59.160 points hikes UM, our markets are saying that for the 0:07:59.240 --> 0:08:02.320 June fo m C meeting we will be seeing fifty 0:08:02.440 --> 0:08:06.640 basis point hyke with chance. The markets are also saying 0:08:06.680 --> 0:08:09.840 that the July meeting will see another fifty basis point 0:08:09.920 --> 0:08:13.480 hype with ninety percentians UM. And across the whole year, 0:08:13.920 --> 0:08:18.480 the markets are expecting ten UM FED FED hikes versus 0:08:18.520 --> 0:08:20.160 I think a couple of months ago it was predicting 0:08:20.200 --> 0:08:23.400 around seven UM, so so definitely a lot of hikes coming. 0:08:23.920 --> 0:08:26.600 So President Biden just you know, unveiled this whole plan 0:08:26.640 --> 0:08:29.520 to keep inflation down. What are your markets say inflation 0:08:29.600 --> 0:08:32.000 is actually gonna do? Right? We also have markets on 0:08:32.040 --> 0:08:34.800 inflation from zero percent to one point two and every 0:08:34.960 --> 0:08:37.360 month of the year, the markets are saying that the 0:08:37.400 --> 0:08:40.880 next inflation print coming out next week will be around 0:08:40.960 --> 0:08:44.400 zero point sixty five percent month over month or over 0:08:44.440 --> 0:08:47.559 the whole year eight point two percent inflation um our. 0:08:47.600 --> 0:08:50.640 Actual markets have have predicted seven out of the eight 0:08:51.080 --> 0:08:54.800 pass inflation prints correctly. Uh so, our our traders have 0:08:54.880 --> 0:08:57.320 not been surprised at all to see the high high 0:08:57.480 --> 0:09:00.920 inflation numbers, um But it's import to say that for 0:09:01.000 --> 0:09:03.640 the rest of the year um SO annualize. For the 0:09:03.679 --> 0:09:05.920 rest of the year, the markets are expecting of around 0:09:05.960 --> 0:09:10.160 four percent annualized in December around three which really is 0:09:10.280 --> 0:09:14.440 around um normal levels, so really expecting inflation to go 0:09:14.520 --> 0:09:18.080 back to normal. Now regulators initially said no to an 0:09:18.120 --> 0:09:23.160 exchange like this, but but recently changed course. Isn't this gambling? 0:09:23.480 --> 0:09:26.760 Why should this be legal? That is a great question, 0:09:27.000 --> 0:09:30.160 um our. We're in exchange the same way that the 0:09:30.200 --> 0:09:32.800 CIME or the New York Stock Exchange are exchanges, and 0:09:32.840 --> 0:09:35.440 you trade events on our exchange the same way you 0:09:35.480 --> 0:09:38.040 trade stocks or futures on CIMME or the New York 0:09:38.040 --> 0:09:41.480 Stock Exchange. We are basically just a trade matching engine 0:09:41.600 --> 0:09:44.720 that matches different people trying to take different positions. So 0:09:44.760 --> 0:09:47.680 if you take our FED markets for example, right, um, 0:09:47.920 --> 0:09:50.800 our markets are a way to trade hedge or get 0:09:50.840 --> 0:09:54.720 exposure to feed events the same way interest rate swaps 0:09:54.840 --> 0:09:58.040 are defined are designed to do, but hours are made 0:09:58.040 --> 0:10:01.320 in an exchange in an accessible and simple way. Um 0:10:01.480 --> 0:10:04.839 we really think that that bringing it to two. People 0:10:04.920 --> 0:10:07.640 have actual risk associated to this, Like if you have 0:10:07.800 --> 0:10:10.600 a student loan tied to the ten year treasury, or 0:10:10.640 --> 0:10:12.840 if you're trying to refinance your home, you have real 0:10:13.120 --> 0:10:15.720 risk associated to the FED raising rates and you should 0:10:15.760 --> 0:10:18.320 have access to the same types of benefits that Wall 0:10:18.360 --> 0:10:21.719 Street does. This isn't gambling. This is finance at it's best. 0:10:21.720 --> 0:10:24.599 It's about hedging risk and getting exposure to to what 0:10:24.800 --> 0:10:27.960 you you have your face risk in your everyday life. Now, 0:10:28.040 --> 0:10:30.360 I'd love to learn a little more about your personal story. 0:10:30.400 --> 0:10:34.000 I know you're from Brazil and you studied bullshoy ballet, 0:10:34.080 --> 0:10:36.960 which I assume was hours a day. How do you 0:10:37.040 --> 0:10:40.559 go from you know, potentially becoming a professional ballerina to 0:10:41.040 --> 0:10:46.160 going to M I T and launching a market startup? Well, 0:10:46.200 --> 0:10:48.600 that is a great question. I definitely have an unconventional 0:10:48.880 --> 0:10:51.720 uh path. Um. Yeah. So I used to be a 0:10:51.720 --> 0:10:54.200 professional ballerina. I used to train, as you said, eight 0:10:54.200 --> 0:10:56.920 hours a day uh in at the Bolshoi Ballet and 0:10:56.920 --> 0:10:59.320 I worked professionally in Austria for a bid and I 0:10:59.320 --> 0:11:02.080 think that really changed and mark how I am as 0:11:02.080 --> 0:11:03.800 a person. I think a lot of discipline and a 0:11:03.800 --> 0:11:06.880 lot of you know, sacrifice and looking two more longer 0:11:07.000 --> 0:11:10.240 term UM payouts versus very short term payouts. I think 0:11:10.280 --> 0:11:12.360 definitely helped with with starting chol ship. But I was 0:11:12.360 --> 0:11:15.240 always fascinated by math and science. Uh So I went 0:11:15.280 --> 0:11:17.520 to m I teach studies CS and math and at 0:11:17.520 --> 0:11:20.280 the very beginning of fascinated by the finest world history 0:11:20.320 --> 0:11:23.760 of markets market structure um. And from then it was 0:11:24.240 --> 0:11:26.360 worked out a couple of hedge funds, but I really 0:11:26.400 --> 0:11:29.280 wanted to make a mark of my own. So UM 0:11:29.600 --> 0:11:32.280 encounter the cow sheet the couchip problem, which for us 0:11:32.360 --> 0:11:36.360 video is people should have the same access people everyday 0:11:36.400 --> 0:11:38.680 business and should have the same access that institutions have 0:11:39.160 --> 0:11:42.440 to hedge risk they have associated to events. Most trading 0:11:42.559 --> 0:11:44.839 is based on events you think rates are going to have, 0:11:45.040 --> 0:11:47.000 like go up. You do this in the stock market. 0:11:47.320 --> 0:11:49.640 We want to bring this to everyday people and let 0:11:49.640 --> 0:11:52.520 them do the same and have the same benefits. UM So, yeah, 0:11:52.840 --> 0:11:55.160 definitely a convoluted story, but but I think it all 0:11:55.200 --> 0:11:58.240 adds up in the end. Last quick question, what's your 0:11:58.240 --> 0:12:01.280 position on crypto? Then? You know, isn't that you know 0:12:01.480 --> 0:12:05.200 a market that's already pretty well established, where you've got 0:12:05.280 --> 0:12:08.000 high risk, high reward. You know, why not put your 0:12:08.000 --> 0:12:10.640 money in crypto instead? That is a great question. I 0:12:10.679 --> 0:12:12.760 think crypto has wiped out a lot of people in 0:12:12.800 --> 0:12:15.720 the past couple of months. You can take the lunar example. 0:12:16.040 --> 0:12:19.640 I think that it needs more regulation. I think a 0:12:19.760 --> 0:12:22.600 very small portion of crypto markets are regulated nowadays, and 0:12:22.600 --> 0:12:25.079 you see a lot of scams just going around of 0:12:25.240 --> 0:12:28.120 like easy twenty yield or something like that, and in 0:12:28.160 --> 0:12:29.800 the end they just use your money and it's really 0:12:29.960 --> 0:12:32.800 people savings. There's like actual victims to this. So I 0:12:32.800 --> 0:12:35.280 really think it needs more regulation and it needs to 0:12:35.280 --> 0:12:38.400 to be brought up, brought into the regulatory oversight in 0:12:38.440 --> 0:12:41.920 the US. UM. I guess that with US, As you said, 0:12:41.960 --> 0:12:43.960 it's like you can also make money and lose money, 0:12:43.960 --> 0:12:46.480 but the difference that we regulated that this won't be 0:12:46.480 --> 0:12:49.320 a systemic risk that older is to explained to people, 0:12:49.640 --> 0:12:52.920 and and regulation brings this fantastic thing which is customer protection. 0:12:53.160 --> 0:12:55.120 All right, I want to love as Laura founder and 0:12:55.200 --> 0:13:07.440 Cello of Calci will keep watching. Thank you well. The U. S. 0:13:07.440 --> 0:13:10.600 Supreme Court has blocked a Texas law that critics say 0:13:10.640 --> 0:13:16.200 would fundamentally transform Twitter and Meta's business by requiring them 0:13:16.240 --> 0:13:20.080 to allow hate speech and extremism. Greg Storm, who covers 0:13:20.080 --> 0:13:22.320 the Supreme Court for Bloomberg, joins us. Now, so, Greg, 0:13:22.320 --> 0:13:25.120 first of all, give us the context on this Texas law, 0:13:25.280 --> 0:13:27.600 which has been moving through the courts, went into effect 0:13:27.720 --> 0:13:32.400 in Texas earlier this month. It did, and the social 0:13:32.400 --> 0:13:35.640 media industry had been very worried about it. The appeals 0:13:35.640 --> 0:13:38.280 court didn't give any explanation for letting the law take 0:13:38.320 --> 0:13:41.960 effect in The social media company said the impact and 0:13:42.000 --> 0:13:46.280 them would be tremendous. They would have to radically change 0:13:46.400 --> 0:13:51.440 their operations uh to remove the ability or to make 0:13:51.480 --> 0:13:54.920 it such that they could no longer essentially moderate content. 0:13:55.840 --> 0:13:58.839 The Supreme Court let that ruling that lower court orders 0:13:58.840 --> 0:14:00.840 stay in effect for a couple of weeks, and now 0:14:00.880 --> 0:14:03.080 finally the Court has intervened and said yes, we're going 0:14:03.120 --> 0:14:06.000 to block that law again. Is there reasoning as to 0:14:06.080 --> 0:14:08.760 why they're blocking a law and what does it mean? 0:14:09.080 --> 0:14:12.040 Not from the full court, we did get a dissenting 0:14:12.040 --> 0:14:15.800 opinion from free conservative justices and interestingly one of the 0:14:15.840 --> 0:14:19.480 liberal justices the second without getting any explanation at all. 0:14:19.760 --> 0:14:22.960 Those three dissenters said they saw this as an affront 0:14:22.960 --> 0:14:26.600 of state sovereignty blocking the law, they would let it 0:14:26.680 --> 0:14:28.960 stay in effect. But from the court as a whole, no, 0:14:29.120 --> 0:14:31.400 we didn't get any explanation. Is this the end of 0:14:31.400 --> 0:14:34.320 the road for this law or does it still have 0:14:35.040 --> 0:14:37.920 you know, an opportunity for for another life. Now it 0:14:38.000 --> 0:14:40.960 still has an opportunity. This just blocks the law while 0:14:41.040 --> 0:14:44.640 the litigation goes forward, and that litigation will go forward 0:14:44.720 --> 0:14:48.480 before that federal appeals court that said the law could 0:14:48.480 --> 0:14:51.840 take effect. So there may be still be some some 0:14:51.960 --> 0:14:56.400 serious fights on the hands of the social media companies 0:14:56.440 --> 0:14:59.040 and their trade groups, which were the ones that that 0:14:59.160 --> 0:15:02.120 suit to challenge into this law. Um. One other thing 0:15:02.200 --> 0:15:04.720 to note here is that there's another law a lot 0:15:04.800 --> 0:15:07.640 like this in Florida. That one was also blocked by 0:15:07.640 --> 0:15:10.400 a federal appeals court last week. So give us some 0:15:10.480 --> 0:15:14.160 examples if this law is upheld, give us some examples 0:15:14.200 --> 0:15:16.960 of what Twitter and Facebook would not be able to 0:15:17.000 --> 0:15:20.880 do that they do. Now, Well, the law says you 0:15:20.920 --> 0:15:24.760 can't engage in what's known as viewpoint discrimination. And what 0:15:24.960 --> 0:15:28.200 that means is you can't say, oh, that's hate speech, 0:15:28.240 --> 0:15:30.720 and because it's hate speech, we're gonna we're gonna take 0:15:30.760 --> 0:15:33.760 that down, We're going to block it. Uh. So the 0:15:33.800 --> 0:15:37.760 social media companies say, we would have to allow neo 0:15:37.880 --> 0:15:41.520 Nazis screeds, we would have to allow anti gay screeds. 0:15:42.160 --> 0:15:46.120 Uh and UM really would not have that ability to 0:15:46.160 --> 0:15:50.720 serve as kind of the traffic cop on their platforms. Okay, 0:15:51.000 --> 0:15:54.040 Greg Store, Bloomberg News, thank you, will continue to follow 0:15:54.080 --> 0:15:57.920 that law. Um, and the Supreme Court's next take all right, 0:15:57.960 --> 0:16:01.440 well by now pay later is a popular option for 0:16:01.560 --> 0:16:04.320 the youngest generation, but as the economy takes a tumble, 0:16:04.400 --> 0:16:09.320 many are struggling to repay all these small loans. Joining 0:16:09.400 --> 0:16:13.280 us now. The CFO of a firm, Michael Linford take 0:16:13.280 --> 0:16:15.760 a listen to him earlier with Blue Maction. Ally, Boss, 0:16:16.600 --> 0:16:20.400 I think it's really important that investors, uh the media 0:16:20.800 --> 0:16:23.400 that uses of our product to understand just how different 0:16:23.600 --> 0:16:27.239 firm is We're different from both the traditional financial institutions 0:16:27.240 --> 0:16:30.440 who offer revolving credit products, and we're different than the 0:16:30.520 --> 0:16:33.360 B N p L competitors that I think are being 0:16:33.360 --> 0:16:37.880 poked out in that particular analysis. Mission go ahead. Yeah, 0:16:37.880 --> 0:16:40.400 a lot of those competitors they've never seen a down 0:16:40.400 --> 0:16:43.680 cycle and we're about to experience something of the sort now. 0:16:43.880 --> 0:16:46.640 So do you think that they're going to experience something 0:16:46.640 --> 0:16:49.680 of a wash out there? I think you're already seeing 0:16:49.680 --> 0:16:52.400 pressure on a lot of these players. Um that you 0:16:52.440 --> 0:16:56.320 have people like a firm who takes our mission and 0:16:56.320 --> 0:16:59.320 our mission has created a business model that makes it 0:16:59.360 --> 0:17:02.200 so that we don't charge ladies, we don't allow consumers 0:17:02.280 --> 0:17:05.280 to revolve on dad, we do not allow to fur interest, 0:17:05.600 --> 0:17:08.399 and these kind of consumer oriented positions in our business 0:17:08.400 --> 0:17:10.280 has made it so that we don't have a choice 0:17:10.280 --> 0:17:13.119 but to underwrite very carefully. We have no way in 0:17:13.119 --> 0:17:15.840 our business model to support consumers who don't pay us back. 0:17:16.160 --> 0:17:18.600 And our most recent quarter we posted unit economics of 0:17:18.720 --> 0:17:22.199 four point seven percent of GMB seventy basis points ahead 0:17:22.240 --> 0:17:25.040 of our long term guidance. We stand out amongst all 0:17:25.080 --> 0:17:27.560 the other players. You have some players who are doing 0:17:27.600 --> 0:17:29.879 headcount reductions to try to save costs in order to 0:17:29.920 --> 0:17:32.760 afford these credit losses, and we're in the opposite position. 0:17:32.880 --> 0:17:35.640 We're very front footed. We're adding to our team because 0:17:35.640 --> 0:17:39.280 our unit economics are an exceptionally strong UH position right 0:17:39.320 --> 0:17:41.720 now because of our world class underwriting, and that's not 0:17:41.760 --> 0:17:44.280 an accident. We had to build that based upon how 0:17:44.320 --> 0:17:47.119 our business model was built from the first day and 0:17:47.160 --> 0:17:49.000 how we treat consumers. You know. The other thing you 0:17:49.040 --> 0:17:50.879 had mentioned too is that you're in a position to 0:17:50.960 --> 0:17:54.040 grow from here, even in a tough environment. What kind 0:17:54.040 --> 0:17:57.720 of hiring plans could you have ahead, especially as you're 0:17:57.720 --> 0:18:01.840 seeing that some of your rivals are cutting their workforce. Yeah, 0:18:01.880 --> 0:18:04.040 we really like our position in the market. You saw 0:18:04.840 --> 0:18:07.440 earlier this month we hired a bunch of engineers from 0:18:07.640 --> 0:18:09.680 a payments company that was having a hard time and 0:18:09.920 --> 0:18:12.439 they were winding up operations. We do this as one 0:18:12.440 --> 0:18:15.119 of the better markets for labor right now, where we 0:18:15.240 --> 0:18:18.760 have a strong need to build great products. We're not 0:18:18.800 --> 0:18:22.000 constrained in terms of our opportunity. We help enable the 0:18:22.040 --> 0:18:24.760 world's fastest growing payment method and we're in the very 0:18:24.760 --> 0:18:27.719 early innings of what our category will become, so we 0:18:27.760 --> 0:18:30.240 need a big team of engineers to go tackle that opportunity, 0:18:30.280 --> 0:18:33.000 and so we're very excited to be able to impressively 0:18:33.080 --> 0:18:39.040 grow our business again responsibly a firm CFO, they're much 0:18:39.080 --> 0:18:51.960 more ahead. This is Bloomberg. Welcome back to Bloomber Technology, 0:18:51.960 --> 0:18:54.840 Emily check in San Francisco. Is another day, another delay 0:18:54.960 --> 0:18:58.520 for Elon Musk SpaceX. The Federal Aviation Administration says it 0:18:58.600 --> 0:19:02.560 now expects to complete and environmental review of the rocket 0:19:02.560 --> 0:19:07.080 maker's Texas facility in mid June. Another pushback, which potentially 0:19:07.160 --> 0:19:11.800 doesn't delays the timeline for Starship Musk's Mars Moonshot. This 0:19:11.880 --> 0:19:14.159 is the fifth time in fact, that the f A 0:19:14.240 --> 0:19:16.800 has postponed the release of this report. From what all 0:19:16.880 --> 0:19:21.320 means are ed Ludlow here with me. So is the 0:19:21.359 --> 0:19:23.320 f A a buying time here? What's going on? It's 0:19:23.320 --> 0:19:26.199 impossible to know. You know, today's May thirty one. I 0:19:26.280 --> 0:19:28.199 was waiting for this because it was the day they 0:19:28.200 --> 0:19:30.240 were due to make a decision, and I wrote it 0:19:30.280 --> 0:19:32.360 down on a piece of paper because I'm not embarrassed 0:19:32.359 --> 0:19:34.960 about that. M They have delayed it five times, and 0:19:35.000 --> 0:19:37.880 the last time we were waiting for this was on nine. 0:19:37.880 --> 0:19:39.760 So I sat here waiting, and they delayed it till 0:19:39.800 --> 0:19:43.880 May thirty one. But it's important because spaces cannot make 0:19:43.920 --> 0:19:47.359 any progress on this. Starship planned the testing phase at 0:19:47.440 --> 0:19:50.359 least until they get clearance from the fair. Now, you 0:19:50.400 --> 0:19:53.560 were on the ground in Boca Chica in February, remember 0:19:53.600 --> 0:19:56.480 that vividly and Elon Musk made it sound like Starship 0:19:56.520 --> 0:19:59.080 was just around the corner, right, And at that time 0:19:59.280 --> 0:20:02.080 he basically expected that the regulatory side of things, this 0:20:02.200 --> 0:20:04.440 environmental review would be done in a couple of months, 0:20:04.440 --> 0:20:06.439 a test flight, the hardware would be ready in a 0:20:06.440 --> 0:20:08.760 couple of months, and he had an even bolder prediction 0:20:08.840 --> 0:20:14.560 for what would happen. Take a listen. It might be 0:20:14.600 --> 0:20:17.120 a few bumps along the road, a bit at all work. Um. 0:20:17.160 --> 0:20:23.040 I feel at this point highly confident that we will 0:20:23.040 --> 0:20:28.680 get to orbit this year classic mask orbital test flight 0:20:28.720 --> 0:20:30.439 by the end of this year. But we don't know 0:20:30.480 --> 0:20:33.919 where we stand now because this key beast keeps getting delayed. Well, 0:20:33.960 --> 0:20:35.720 so that was my next question, what do we know 0:20:35.760 --> 0:20:38.520 about where we stand with Starship? So you've seen the video, 0:20:38.520 --> 0:20:40.560 I think if the Mr Director will play it again, 0:20:40.600 --> 0:20:43.680 the explosions, the kind of successful test they've only really 0:20:43.720 --> 0:20:46.199 done hops off the ground, and what Starship needs to 0:20:46.240 --> 0:20:48.280 do is an orbital test flight. That's kind of the 0:20:48.320 --> 0:20:52.840 big milestone moment where it breaches as atmosphere, comes back 0:20:52.840 --> 0:20:55.560 down and lands again. That's we're waiting for Gwin shot. Well, 0:20:55.640 --> 0:20:58.080 who's the president CEO said it could happen in June. 0:20:58.720 --> 0:21:01.040 Doesn't seem like that if the f A decisions not 0:21:01.119 --> 0:21:05.600 Dune now until June. Meantime, of course, you've got SpaceX 0:21:05.640 --> 0:21:08.840 generally going from straight to strength, pulling off you know, 0:21:08.920 --> 0:21:13.680 a lot of successes. So as of Friday, Starlink there 0:21:14.440 --> 0:21:18.920 space satellite constellation based internet service is available in all 0:21:19.000 --> 0:21:22.240 seven continents. He expanded to Africa as of Friday. That's 0:21:22.280 --> 0:21:27.040 quite an achievement. And today this may first really important 0:21:27.080 --> 0:21:31.159 date ten years ago, first unmanned Dragon missions I s S, 0:21:31.320 --> 0:21:34.399 two years ago, first man one. They're dominating you know, 0:21:34.440 --> 0:21:37.640 this industry. But we really care about Starship because it's 0:21:37.640 --> 0:21:39.360 like you said, it's the Mars shot of the moon 0:21:39.400 --> 0:21:42.480 shot all right, at Law, thank you, well, keep watchally, 0:21:42.480 --> 0:21:46.360 you'll keep us posted. Well. Today mark the first day 0:21:46.359 --> 0:21:49.200 on the job for the new CEO of match Coupernard Kimp. 0:21:49.240 --> 0:21:53.560 He is leaving Zinger, where he's been president. Since he's 0:21:53.600 --> 0:21:55.679 taking over for Shardubi, who has been at the company 0:21:55.680 --> 0:21:58.320 for the last sixteen years. It is a pivotal time 0:21:58.359 --> 0:22:00.439 for dating apps, especially as we are heard from the 0:22:00.440 --> 0:22:03.439 pandemic and much of the world faces inflation. I am 0:22:03.520 --> 0:22:06.080 joined now by Sea Kajuria and analyst at Evercres, who 0:22:06.160 --> 0:22:09.159 just published a deep dive on not only Match but 0:22:09.280 --> 0:22:11.840 also Bumble. So, so what do you make of this 0:22:11.880 --> 0:22:15.320 new leadership and also coming from the gaming space to 0:22:15.960 --> 0:22:20.040 online dating. Is that a good thing? Well, we'll have 0:22:20.160 --> 0:22:23.680 to see. I Uh, he's done a good job at Zinga. 0:22:23.800 --> 0:22:28.080