August 1, 2025 • 46 mins
Bloomberg’s Caroline Hyde and Ed Ludlow discuss how Big Tech earnings and changes to Trump’s tariff plans are being received by investors. Plus Reddit COO Jen Wong talks about the platform’s record quarterly profit, while Roblox CEO David Baszucki explains what’s behind its rise in user growth. And, the SpaceX Falcon 9 rocket launches on a mission to the International Space Station.
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is a
live from coast to coast with Caroline Hide.
Speaker 2 (00:17):
In New York and Eva Low in San Francisco.
Speaker 3 (00:22):
This is Bloomberg Tech. Coming up, Apple and Amazon end
this week. In tech earnings, we'll discuss Apple's global growth come.
Speaker 4 (00:29):
Back, plus Reddit surges on a record profit we discussed
with the company's COO Gen Wong, and we'll.
Speaker 3 (00:36):
Be joined by Roadblock CEO Dave Bazooski to break down
the company's earnings and it's advertising pushed later this hour.
Speaker 4 (00:42):
But let's get to the macro perspective first, ed because
it's pretty ugly out there. In fact, we're having the
worst day and announst that one hundred since April, the
worst week since May. And that's as we get that
so called resilient jobs market with some cracks showing and
some revisions for previous months. When it comes to the
labor force, that bagstown stocks sends bonds higher. But I'm
also looking well the implications of tariffs when we are
(01:04):
fifteen point two percent general average now for tariffs on
goods coming into the United States. There's karity there, but
is there long term negotiation still to come. What does
it mean for tech stocks? More broadly, let's get to
Klee lines, just the breakdown Klee of what we learned
on where countries are standing right now.
Speaker 5 (01:23):
Well, Caroline, there's many different layers to this. The global
baseline minimum teriff rate will stay at ten percent, despite
some previous suggestions from the President that it could go higher.
But indeed the teriff rates will go higher for countries
that have larger trade surpluses with the United States, from
fifteen percent to well beyond that for some countries who
were able to secure deals with the United States an advancer,
of course, had already received letters from the President. That
(01:45):
includes the likes of Canada, for example, which will have
a thirty five percent tariff on it's goods, though there
is a carve out for those that are compliant with
the USMCA Trade Agreement, or a country like Switzerland, which
will see a thirty nine percent rate in aggregate. According
to our estimates here at Bloomberg e if these tariffs
go into effect and stick, it will take the average
tariff rate for the United States up to fifteen point
(02:06):
two percent from the current thirteen point three percent, which
brings us back to levels last scene in the World
War two era, and it's well above the little more
than two percent rate on average that we saw before
President Trump took office. That said, it is still an if.
According to the orders that the President signed last night,
these duties will not begin to be collected until August seventh,
so about a week to go here.
Speaker 2 (02:27):
That does leave some.
Speaker 5 (02:28):
Wiggle room for countries to either continue negotiations, try to
reach deal, or maybe get an extension, like we saw
with Mexico yesterday, which was able to secure a ninety
day extension of their current agreement. Also, we need to
consider that China is still a question mark that August
twelfth deadline is looming. The President has not signed off
yet on an extension for the trade detente between those
(02:48):
two countries, and he also had some measures that do
seem aim specifically at China in what he signed last night,
with a forty percent tariff that is going to be
applied to so called transshipped goods, though it's not exactly
clear how those rulings will be made or how that.
Speaker 2 (03:01):
Will be enforced.
Speaker 5 (03:01):
Also unclear is what sectoral terraces could still come into
the picture, as they're still ongoing Section two thirty two
investigations into things like pharmaceuticals and semiconductors, and we're awaiting
those outcomes as well.
Speaker 4 (03:12):
Tailey lines with a breakdown. Thank you so much. Look,
let's get to your micro picture because there's trade, but ed,
you're looking at earnings.
Speaker 3 (03:20):
Yeah, and earnings is a big story in the world
of technology this morning. Amazon is an AI story, and
it's a cloud story. Look at the drop on the
stock significant. The concern is the outlook for operating income.
So much revenue comes from Amazon dot Com, but the
majority of operating income from AWUS, and the outlook seen
as weak or conservative. But AWS in the period Gone
(03:40):
grew seventeen percent in a quarter where Microsoft Azure grew
thirty nine percent and a quarter where Google Cloud Platform
gained some territory.
Speaker 6 (03:49):
There's pressure there.
Speaker 3 (03:50):
Apple beat across every metric in the June quarter GONE
and told us in the September quarter mid to high
single digit percentage growth.
Speaker 6 (03:58):
But everyone this.
Speaker 3 (03:59):
Morning carrow asking about pull in or pull forward, And
what Apple said was in April in the United States,
one percentage point of growth was people front running tariffs,
but they grew ten percentage points do we believe them.
The market's down one point six percent.
Speaker 4 (04:14):
Let's get more analysis with an investor. Tony One's with
us is t row Price Science and Technology Fund portfolio
manager exposure to Apple. What do you think in terms
of Apple's seeming resilience and growth in China.
Speaker 7 (04:28):
Yeah, I think that their you know, product is still
in demand, and they did some pricing adjustments to make
it more attractive to fitting the subsidies, and at the
end of the day, I think it's still a really
high quality of product and brand. I think that what
matters going forward is their product innovation around AI and
improving series.
Speaker 8 (04:47):
You know.
Speaker 7 (04:47):
I think that you had a period where Huawei came
back and took share back, and it was a competitive
environment made Apple kind of adjust a little bit to
bring more value.
Speaker 8 (04:56):
But I think it's encouraging that things are getting better
in China.
Speaker 3 (05:00):
They're growing again, Tony, I want you to help me
with the map here a little bit. So April largely
one percentage point of growth in the Gune quarter was
pull in pull forward from tariffs, and then Apple told
us that they would grow mid to high single digits
in the September quarter. That would indicate that there isn't
(05:20):
some kind of tariff front running here, that Apple's just
growing because it's growing. Do you buy that?
Speaker 8 (05:27):
Yeah, well, I think that, you know, it's kind of
hard to tell, to be honest.
Speaker 7 (05:31):
I think that there was a period when you were
rushing to Apple stores to buy some iPhones before the terrorists,
but I feel like that quickly subsided and you know,
that was resolved relatively in short order. And so I
think that what matters here is the forward look. You know,
as investors, you're probably looking more towards what they do
(05:52):
with the next iPhone cycle. Fold the ball in addition,
like services was really strong, and so there was a
fear that what happens with uh, you know, Google search as.
Speaker 8 (06:03):
Well as kind of the the app store ruling where
people are circumventing the app store.
Speaker 7 (06:08):
It seems like that's like actually been okay, and so
going forward, I think that it's less about like was
there a little pull in or by more of the
iPhone cycle coming coming up that people aren't focused on.
Speaker 4 (06:19):
So Tony, when does the real pivot point come? When
is it that you have confidence to add exposure and
feel that Tim Cook and the team are on top
of generative AI, of the opportunity at hand of innovation.
Speaker 7 (06:35):
Look, I think Tim Cook and the team they're really
talented and their world's class manufacturers and you know, their
product leadership.
Speaker 8 (06:44):
You'll be built that over decades.
Speaker 7 (06:46):
And so I don't think you can count about in
terms of where the stock at has been. It's like
the market break considerably in a market that's been super
beta fuel and risk taking. And so you know, if
the market turned like Apple, I think is a safe table.
And then if you look at kind of the momentum
they're building like things, things are probably going to get
(07:07):
better over the next twelve months. And I do think that,
you know, they can do a lot within AI. They're
probably you know, not rushing to commit to anyone one partner.
You know, they own the ecosystem and so to me, like,
as long as the iPhone is still the main, you know,
(07:28):
channel for AI, I think that's that's really important.
Speaker 3 (07:32):
Talent wasn't mentioned on the call, but the final question
was about M and A in the context of AI
and what Tim Cook said, And I know because I
put it in the top live blog and then I
screenshotted it. We are very open to m and a
Tim Cook two fifty seven pm Pacific time, Thursday, July first.
Is that a starter gun or signal particularly to investment
(07:55):
bankers or do you expect Apple to stay sort of
muted in disciplined on that front, I think.
Speaker 7 (08:01):
The Apple is very muted, and I always say muted,
but they're very disciplined, and I think that they have
like a very very strong focused in what matters in
their direction. I mean, for a long period of time,
you can put all their products on one table and
to be really great at what they do. And so
I don't think they're going to be muted. I think
(08:22):
they're going to be disciplined and focused, and they have
made acquisitions that can really I think, plug into the
ecosystem enhance their talent.
Speaker 8 (08:32):
I don't think they're going to go to a really.
Speaker 7 (08:34):
Big, splashy acquisition, but if you take a step back,
they're generating a ton of capital and there's a lot
of potential for improvement.
Speaker 3 (08:43):
And via em and a Telly one on the tray price.
Great to have you back on Bloomberg Tech. Thank you
very much. Let's stick with earnings and turn in part
to Amazon.
Speaker 6 (08:52):
I'm actually going to.
Speaker 3 (08:53):
Keep going with Apple as well with Laura Martin, who
covers the broad gamut of tech. But and listened you
were listening there to Tony Wright. I just wondered if
you had any response difference of opinion on any of
the ground that we covered.
Speaker 9 (09:08):
Yes, I would be much more negative.
Speaker 10 (09:10):
I think the Apple stock cannot work without an Apple
iPhone replacement cycle. And Tim Cook said on the call
that they have twenty AI jenerative AI capabilities involved in
its current iPhone. But next year we're going to get
really the Apple intelligence step up.
Speaker 9 (09:28):
So that's two years after.
Speaker 10 (09:29):
I originally promised it, which means we're not going to
get an iPhone replacement cycle this year in September. It
would be next year at the earliest, which means I
don't think the stock can work. I don't think it
can outperform. Meanwhile, when you listen to Alphabet, they've got
Google Gemini, and they are incorporating jenerative AI features in
every one of their products, including Android, which is the
(09:51):
primary competitor here. So you and I aren't incentive to
go out and replace our iPhones, which means our iPhones
are getting another year older, another a year older, and
at some point, if the one of the Android version
runs ahead with some cool feature that all of us
want to try or can't live without, we are more
likely to shake loose from that iOS ecosystem because they
(10:15):
aren't showing us anything that keeps us there as these
iPhones age and we want to replace our iPhones with
something new.
Speaker 4 (10:21):
Meanwhile, don't She's doing a lot for Sansung foldable phones
and plenty of others on the market right now. I
just pivot therefore to Amazon, which does have hardware. But look,
we're looking at the growth story of cloud right now.
In AWS, seventy percent was exactly where Amnis wanted it
to be, but did just pale into comparison compared to
where Azure was and where Google is in terms of cloud.
Speaker 10 (10:44):
Yeah, so what they said was that there was real
margin pressure here, right. Margins went to thirty two percent,
down from thirty nine percent last quarter, and like Google's
cloud margins were through the roof, so were Microsoft.
Speaker 9 (10:58):
So when you have they're all capacity constraints.
Speaker 10 (11:01):
So we would have forgiven Amazon the seventeen percent growth
rate and revenue if their margins had stayed at that
very high sort of forty percent level, because they're out
of capacity, so they should be like charging a lot
for anybody that uses demand in their cloud.
Speaker 6 (11:15):
But they didn't.
Speaker 10 (11:16):
They were under margin pressure, so I think people didn't
like that. I think that My opinion is they're losing
business because their competitors are price competing and taking away clients.
You know, Apple's still the biggest. There's sixty five percent
bigger in cloud than the next closest guy they in
the business. And he made the point that eighty five
percent of companies are still on physical servers on premise
(11:37):
and all of those companies need to move to the cloud.
And Amazon it's the biggest. So I think this is
a short term problem. But boy is the market mad.
I mean, investors are mad about these numbers coming out
of Amazon, but.
Speaker 4 (11:48):
They're quite often mad at Amazon because Amazon is willing
to say sorry, profit tomorrow, profit the next quarter, for now,
I invest in my business. Did he sound bullish enough
on the general to ay opach opportunity, because goodness, they're
intertwining it left, right and center as well.
Speaker 10 (12:05):
You know, maybe I think, look, I think this is
the right guy in the seat right.
Speaker 9 (12:09):
This guy is the one who started founded cloud.
Speaker 10 (12:12):
And did extent Cloud is either under siege or doing
something wrong, or Wall Street's just mad.
Speaker 9 (12:17):
This is the guy to fix it like this isn't
a CEO from a different business, this is his core business.
Speaker 10 (12:22):
I think Wall Street's a little mad that they're spending
money on Kuyper, which is not making revenue. Alexa plus
ten years, we still don't have a dollar of revenue,
but a ton of expenses, and they're doing same day
delivery in urban centers, all of which feels.
Speaker 9 (12:36):
Like a lot of capital to spend where you're a price.
Speaker 3 (12:40):
Can I ask you, Andy Jesse said, quote very early
days in artificial intelligence across all businesses, very quickly. Do
we have any better understanding of Amazon's AI story than
we do Apples, which gets, of course scrutinized a lot.
Speaker 9 (12:55):
Yes, much better. They're incorporate.
Speaker 10 (12:57):
They have a very clear AI strategy w is to
host everybody else's AI cloud on theirs. Remember Google's proprietary,
Microsoft proprietary. Amazon's strategy is to host all large language models.
Speaker 9 (13:10):
It just wants the cloud fees.
Speaker 4 (13:12):
Laura Martin Kimming it shortened sweeten to the point we
so appreciate stay well, have the good rest of the weekend. Meanwhile,
coming up we stick with tech earnings one that actually
Laura Covers has read it. The COO Jen Wong was
fair to discuss explosive sales.
Speaker 2 (13:25):
Both as a bluebo.
Speaker 3 (13:27):
Tech shares have Reddit absolutely surging today, up more than
(13:48):
twenty percent, biggest jump since the first week of April.
The company reported its most profitable quarter today and projected
sales for the third quarter that were above and this estimates.
Speaker 6 (13:58):
Reddit COO Gen Wong joins.
Speaker 3 (14:00):
Us now for more and it's like one of those
quarters where should we just start with the basics. Advertising
was really strong in the cord of gone. Why was
it so strong? Which geographies were good? What are you
doing that makes Reddit so attractive relative to other platforms?
Speaker 11 (14:15):
And thanks for having me.
Speaker 12 (14:15):
It was a really strong quarter across the board for Reddit,
and in terms of revenue, we saw broad based strength
across all the verticals. We saw geographic strength in the
US and in the rest of world, growing over seventy
percent in both geographies, we.
Speaker 11 (14:33):
Saw users grow twenty one percent.
Speaker 12 (14:35):
Obviously, advertising revenue group by eighty four percent year year,
which is truly differentiated. We grew active advertising by fifty
percent year every year and you can see across the
funnel both our lower funnel convergent objective plus brand, we're
both big contributors to the results in Q two.
Speaker 11 (14:57):
So again, broad based strength in.
Speaker 2 (14:59):
The it's surprised and investors a surprised analysts.
Speaker 4 (15:02):
Did any of it surprise you, Jen, any verticals that
surprised you, any geographies that surprised you.
Speaker 11 (15:08):
I think this is.
Speaker 12 (15:09):
A continuation and an output of our investments.
Speaker 11 (15:13):
We feel really good about our strategy and our roadmap.
Speaker 12 (15:16):
We've been investing in our capabilities to make every impression
more valuable for marketers over the last couple of years,
working on that lower funnel objective, and I think now
we're seeing the benefits of all the value we're.
Speaker 11 (15:29):
Delivering to our customers.
Speaker 12 (15:31):
The team's been executing really well. We've been making investments
and expanding our sales team across verticals, across geographies that's
coming in and supporting the broad based strength. So we
feel really good about the investments we've made. I think
our work is working.
Speaker 3 (15:48):
I just typed who is Jen Wong into Reddit answers,
and it says Genwong is a prominent figure in the
world of tech and business and COO of Reddit, but
I find it an interesting tool. Rights supposed to be
human led answers, but might we see ads place there?
You know, people talk about this a lot. How we
monetize on that, It's.
Speaker 12 (16:09):
A great question, I think Before we get to monetization,
which I think is a huge opportunity for for Reddit,
in that space and the area of search, I think
we have an opportunity to build a very distinctive destination
search experience. Reddit is where people come for real perspectives
from real people, not looking for just the summary, but
(16:33):
looking for what the context around. You know, why did
you think that this was the best running shoe? Because
you live in heavy trails a rocky area. You know,
you're a long distance run or a short distance run.
Speaker 11 (16:45):
Like all those details of.
Speaker 12 (16:46):
Real human experience are brought to life in Reddit answers
and Reddit Search.
Speaker 11 (16:52):
What we're doing is bringing together this capability.
Speaker 12 (16:55):
In Reddit Answers, which is an LM on top of
the incredible conversation on Reddit, and integrating that with core
Reddit search so that it becomes a more fulfomed experience.
And then as we continue to grow the use of
that destination search.
Speaker 11 (17:10):
I think monetization follows.
Speaker 12 (17:12):
I mean, it's a lot of those queries are incredibly
just naturally commercial nature, or it's people trying to make
decisions and allocate resources and buy things, you know, to
that fit their lives.
Speaker 4 (17:25):
Yeah, I mean monetization has been something you've done well
with other deals for licensing your own data to generative
AI large language models. But Jen, there's a little bit
of beef going on, perhaps with one with Anthropic. Can
you give us any update as to what's happening with
your relationships and further content licensing deals.
Speaker 12 (17:44):
Yeah, I mean, I won't comment on litigation, but I
will talk about data licensing. I mean, you know, we
these were our first commercial relationships. We're a year a
year and a half in. I think we've learned a
lot and we're still learning. I think we're open to conversation.
I think what we're learning is that we and frankly
everyone can see reddits contribution to these lms, how often
(18:10):
Reddit is cited, how important Reddit is for people to
get the perspective that they're looking for.
Speaker 11 (18:17):
And when we see that, you.
Speaker 12 (18:18):
Know, I think it reveals that the fact that Reddit,
I think has never felt more essential to the Internet
and to helping people.
Speaker 11 (18:27):
I think what we get.
Speaker 12 (18:28):
Excited about is when we look at this is the
opportunity for ourselves, the opportunity for us to build products
around the decades of conversation on Reddit, Reddit answers and
search is one area obviously growing those communities.
Speaker 11 (18:44):
In our core product. So we get really excited about that.
Speaker 12 (18:48):
And you know, I think overall the value of Reddit
and conversation in this world of AI is going up.
Speaker 3 (18:55):
You know, a lot of your job is flying around
the world. International markets just very quickly, how start going
getting dollars from abroad and very quickly also languages as well.
Speaker 12 (19:05):
Yeah, I mean international is incredibly important to us. It's
about twenty percent of our revenue, and international revenue from
advertising grew over seventy percent in the quarter, so it's
been a growth driver for us. We're particularly active in
Europe and Amea. We're seeing really nice growth in our
target countries where we're applying AI for machine translation to
(19:28):
have global conversations in different languages so that people that
don't have language friction. We're also growing local communities, which
we're excited about doing some partnerships and sports and entertainment
that are really simulating the growth of local communities like
telenovelas in Brazil and football in Germany. And that user
(19:51):
growth that we're supporting then obviously creates a monetization opportunity.
Speaker 4 (19:56):
Jen Wog, I've read it. It's wonderful to have time
with you. Thank you very much. Indeed, now coming up
Pigma shares, Actually are they managing to rise even on
day two after that monumental launch. We'll talk about the
IPOs big winners and what's next.
Speaker 2 (20:09):
This is blue Bag tech.
Speaker 13 (20:23):
Shares.
Speaker 4 (20:23):
A Figma sold a whopping two hundred and fifteen percent
on their first day of training. That's the largest first
day pot for a US trading company, raising more than
a billion in at least three decades. That's according to
Bloomberg Data. So is this positive, this strength or is
that money left on the table for the design software maker.
Let's get to Katie Ruth for her analysis. We're actually
still clinging onto some gains in a downmarket to Dave,
(20:46):
and Katie feels the demand is so insatiable her three.
Speaker 14 (20:49):
Clearly the window is open for tech listings, or especially
open for Pigma. Yeah, you ask a good question about
the their money left on the table of these favorite
debate obviously the cell side, which is primarily the company,
but also the top shareholders.
Speaker 13 (21:06):
He sold five percent of their stakes.
Speaker 14 (21:08):
Yes, they would have I'm sure loved to sell for hire,
and then you know they could have raised more money.
But I think there's a real question over what time
frame do you evaluate a first day pop on. If
you look at twenty twenty one, a lot of those
stocks eventually bottomed out.
Speaker 3 (21:24):
Thinking about some of the conversations Caroline had yesterday down
at the NYIC, just fantastic classic ipo stuff right, adjusted
gross margin of ninety two percent. Is this just because
everyone loves a high margin software name, or is there
some retail trading here?
Speaker 6 (21:39):
What's really happening?
Speaker 13 (21:40):
Well, I think if you look at it's not just
this one.
Speaker 14 (21:43):
There have been several recent tech IPOs that saw big
pops on the first day and in the recent trading,
and so I think what you're seeing here is there's
pent up demand for new tech listings.
Speaker 13 (21:57):
Twenty twenty one was a blockbuster.
Speaker 14 (21:59):
Year, and there was an eighteen month period where there
were zero tech IPOs, and when they first started to
come back, the market was a little bit skittish. But
I think they've decided they want tech stocks and they
want more of them.
Speaker 3 (22:12):
I think that in twenty twenty five we've already picked
twenty twenty four in terms of volumes, which is exciting
Bloomberg Katie Ruth, thank you very much. Now coming up
on Bloomberg Tech when it were joined by the Roadblock
CEO David Zuki to break down the company's earnings. It's
advertising push and much much more. Are just a fantastic
way to end a week in big tech and big
tech earnings.
Speaker 6 (22:32):
Stay with us. This is Bloomberg Tech. Welcome back to
(22:57):
Bloomberg Tech.
Speaker 3 (22:57):
There's some kind of macro level economic concerns out there
in the market. I'm looking at the Magnificent seven, that
collection of megacap tech. Of course, within that Apple and Amazon,
which is actually the biggest points drag of most indices,
is an earning story. But at the same time, we
covered off area in the show Carro tariffs and tariffs
having an impact in different ways in some of those companies.
(23:19):
We'll get to more of that later in the Hour
one earnings. We haven't got too yet is coinbase revenue
projection missing estimates. But what I find so interesting about
coinbase is that its performance is directly tied to volatility
or in this case, a lack of volatility in crypto markets.
But that stock drop of sixteen percent is its biggest
drop since March. Very interesting, real calculation on one single name.
(23:40):
But there are so many to get in.
Speaker 4 (23:42):
There are, And let's go back to roadblocks because the
gaming platform reported phenomenal booking increases more than fifty percent
in the last quarter daily active US account toping one
hundred and eleven million shares, So you see still trading
higher after the earnings posted yesterday morning. Moeblock's CEO David
and Bazuki joined us now Dave across the board. Growth
daily active use is particularly the older cohort. I'm looking
(24:03):
at hours engaged revenue bookings.
Speaker 2 (24:06):
We're saying you raise your guidance.
Speaker 4 (24:08):
These viral experiences grow a garden, for example, how much
are they contributing to this growth?
Speaker 15 (24:15):
Hey, great to be here, and we have created an
essential really the conditions to grow a garden, in this
case growing amazing creative new experiences on roadblocks. In addition
to grow a garden, which is a cultural meme. Right now,
there's five experiences on roadblocks with more than ten million
daily active users, and I want to highlight in addition
(24:39):
to that great growth we saw, we saw thirteen and
up users grow daily active users sixty four percent.
Speaker 16 (24:45):
Year on year.
Speaker 15 (24:47):
We have a vision of ten percent of the global
gaming content market running on our platform, and this really
explosion of great new hits.
Speaker 16 (24:57):
It supports that thesis.
Speaker 15 (24:58):
I also want to highlight even without Grow a Garden,
we would have reported an amazing Queue two with great
year on ear growth rates.
Speaker 4 (25:08):
Brook Covens there, Grow a Gardens there. Just delve into
these hits that you have. How much revenue do they
sort of supply to you? Can you break it out
on an individual win basis?
Speaker 15 (25:21):
Well, I want to highlight these hits. A lot of
them have been created in the last year. In fact,
four of the top five experiences were created in the
last year. Part of our vision is there's an enormous
headroom to innovate in the gaming space around how games
are created, how people consume them, how they're social, all
(25:43):
of this, and we believe this innovation is driving the
ability for creators to make awesome new experiences.
Speaker 16 (25:51):
On the platform.
Speaker 15 (25:52):
You know, we're starting to see some of these hits
go global want to highlight. For example, a pac DAUS
grew over seventy six percent year on year, and we
still have a lot of headroom. We're we're only about
three percent of the global gaming market running on our platform,
and our vision is to get to ten percent.
Speaker 3 (26:13):
Dave, I've been able to get with your team and
talk a little bit in recent months about advertising, and
one of the things I think people don't necessarily understand
about roadblocks is advertising is a revenue stream for you,
but also for the deads that the creators themselves. But
I think I'm right in saying you've never really given
us a dollar figure on how it's going. Would you
just update us on the ecosystem and the wins that
(26:35):
you see for roadblocks.
Speaker 15 (26:37):
We do think there's a significant advertising opportunity on the platform,
and you're exactly right. All of this growth we've been sharing,
you know, bookings growth of north of fifty percent in
Q two was driven not by advertising, but by people
spending robucks on the platform. That said, there's several categories
(26:58):
of experiences and creators that advertising may be the best
way for them to make future revenue. Highlighting Typically our
vision is advertising for older users, not for younger users,
because we're already so healthy monetarily there, and we have
launched video advertising on the platform.
Speaker 16 (27:18):
We just in the last week open it up for
more creators.
Speaker 15 (27:22):
I will assure you if and when we hit ten
percent of the global gaming market space, that advertising will
be a key part of that top bookings line.
Speaker 3 (27:32):
I kind of want to stick with the creators because
I'm trying to always understand the ecosystem. So one thing
that you've done is help creators get licensing deals. They
might create a game, that game might be franchisable.
Speaker 6 (27:45):
Why do that?
Speaker 3 (27:46):
But also, like, are you kind of taking the liability
on copyright and on legal and everything else that comes
with a deal like that?
Speaker 15 (27:56):
We aren't really And what we've seen two years ago,
people might have thought, well, you're not going to have
any prime sports brands on your platform, and then all
of a sudden, we have, you know, NFL Universe, a
partnership between the NFL and an existing developer on the
platform be extremely successful. What we've started talking about with
(28:18):
our IP platform is the ability for great brands, whether
it's for example, Stranger Things, there's Quid game from Netflix
being available for creators on the platform who want to
integrate the brand and really create a win win in
that these brands can have a lot of people interacting
(28:39):
with them, it can drive engagement within them. So there's
a lot of opportunity in the future to connect great brands,
great ip with the creative energy of the developers on
our platform.
Speaker 4 (28:50):
I like that win win idea and the revenue share
that goes to the developers. Also what's interesting is developers
are buying from these one off makers say that grow Garden,
I think as a team who still owns about half
be sold off the other half of his business over
to New Zealand splitting point studio.
Speaker 2 (29:06):
Are you helping facilitate that m and A. How do
you see your role there?
Speaker 15 (29:11):
We would like to more and more make a very
liquid market there. And at our Roadblocks developer conference a
couple of years ago, I shared that as we have
a larger proportion of the gaming market running on Roadblocks,
it's not inconceivable that there will be a billion dollar
studio on the platform. We're well into the nine figures
(29:33):
hundreds of million hands of dollar type studios and grow
Garden was a great example of an initial small team
working with Jendell, who acquired part of it, and it
was a deal that was a win win deal. The
original creators did very well and Grow Garden has been
refined and tuned into now the largest simultaneously played game
(29:54):
in the history of the Guinness Book of World Records,
going over twenty million concurrent players.
Speaker 16 (30:01):
A few weeks.
Speaker 3 (30:01):
Ago, Dave, about three weeks ago you came onto the
program and discuss with me generative AI video based age verification.
Speaker 6 (30:11):
In the interim.
Speaker 3 (30:11):
On July twenty fifth, we got the Online Safety Act,
and which will have an impact on you. Could you
just quantify how that those parameters might impact active users
or engagement just quickly.
Speaker 15 (30:24):
I want to highlight we have always had safety as
one of our top priorities, and we're not waiting for
the law or legislation. We've innovated with age estimation on
our own because we want to keep people on our platform.
Roadblox is a place where we filter all the texts
and the voice, where we monitor for critical harms, where
(30:46):
there's no image sharing or any of the things that
might happen from that. So age estimation we took leadership
here in innovating and we think it's going to set
the standard for the industry.
Speaker 3 (30:58):
Roadblock CEO Data. It's great to have you back on
Bloomberg Tech. Thank you very much. Now coming up, we're
standing by for SpaceX crewed Falcon nine rocket launch headed
to the International Space Station. Scrubbed yesterday. The countdown continues
for today.
Speaker 6 (31:13):
We'll be right back. This is Bloomberg Tech.
Speaker 3 (31:29):
We're just a couple of minutes away potentially four astronauts
set to launch to the International Space Station. Live shots
of NASA's Kennedy Space Center in Florida, Complex thirty nine A.
The astronauts on the SpaceX Falcon nine rocket in Dragon capsule.
This Dragon capsule Carrow has flown, will be at sick flight,
which is an interesting data point and milestone in and
(31:50):
of itself. I say potentially because I was looking at
those clouds. They're a bit worrying. I know that SpaceX
and NASA a bit worried as well.
Speaker 2 (31:57):
Just talk about just.
Speaker 4 (31:59):
What this means for Fulcan nine to zero and the
symbolic nature. It was but a few weeks ago that
Elon Musk was threatening to decommission it almost in his
tet tet with President Trump.
Speaker 3 (32:10):
Absolutely right and absolutely so you know, NASA and America
rely on SpaceX to move astronauts and human beings to
and from ISS. If this mission is successful and goes
off today, two hundred and ninety people will have been
to ISS in its history. Sixty eight of those will
have been flown by SpaceX in the modern era. So
(32:30):
it gives you a sense proportionately of how much SpaceX
has dominated this space SpaceX has been warning us about lightning.
We were scrubbed yesterday. But that is the story that
you need to understand. You know, SpaceX is the de
facto market leader of moving not just humans but payload
to orbit generally speaking.
Speaker 4 (32:49):
Yeah, and go back to the fact that this is
a sixth flight. It was originally commissioned for five flights.
But they're trying to sweat this asset, right, This is
all about bringing.
Speaker 2 (32:57):
The cost down.
Speaker 3 (33:00):
Yeah, I mean, look, the economics have changed vastly under SpaceX.
I'm keeping an arm on the clock because if we
tip over T minus one minute, it's a pretty good
signal that we will be launching in the sixty seconds time.
You know, the ISS has a limited shelf life. It's
going to be decommissioned beyond twenty thirty and literally crashed
into the ocean. But it needs servicing, and so you know,
(33:23):
SpaceX right now is the only option. We have some
reporting this week that the interim chief of NASA, which
is Transport Secretary Sean Duffy, met with his Russian counterpart.
There will be a Russian astronaut aboard this Crew eleven mission.
But if SpaceX wasn't there, then the only other option
for the United States would be Russia, which in this climate, Yeah.
Speaker 4 (33:42):
They'm been told to go for launched and this is
symbolic from a geopolitical perspective on who is on board.
Speaker 3 (33:49):
Yeah, we'll get to the crew. But you know, I
think this might be a first for Bloomberg Tech if
we ever carried a launch live.
Speaker 6 (33:55):
I don't know. But with ten seconds on the clock,
let's listen.
Speaker 17 (33:58):
In ten nine eight, seven, six, five four three two
one kitson pitches full power and lift.
Speaker 6 (34:13):
Go Falcon, go back, go through.
Speaker 18 (34:18):
Together we rise as a space that Scroll eleven the
heads up to the International Space.
Speaker 1 (34:23):
State vehicles with pitching down range.
Speaker 18 (34:25):
One point seven million pounds US phenomenal propelling Falcon nine
as the vehicle pitching down range and making its way
up the East coast and we'll soon join Expedition seventy
three of the Orbiting Laboratory. So far getting good call
outs on that first stage performance.
Speaker 19 (34:47):
We are now t plus thirty five seconds into the
Crew eleven mission on board Dragon and Falcon nine. The
Thalcon nine engines down are throwing down.
Speaker 2 (34:58):
To power in colementary or not not to.
Speaker 19 (35:01):
Help pass through the period of max Q or maximum
aerodynamic pressure on the vehicle during a cent max qu.
Speaker 6 (35:10):
You just had max.
Speaker 13 (35:11):
Q right there.
Speaker 16 (35:15):
Falcon nine is supersonic hell.
Speaker 18 (35:22):
One minute nine seconds into what is a little bit
more lost up a nine minute flight up till as
Dragon continuing.
Speaker 3 (35:33):
Got so currently traveling fifteen hundred kilometers no hour is
the SpaceX Falcon nine with Dragon on top, goes through
Earth's atmosphere or get up to around like fifty five
hundred and fifty six hundred miles per hour. When it
gets to that orbital height, you're talking like seventeen thousand,
five hundred miles per hour. They called the moment of
max Q carro, which is the moment where the rockets
(35:54):
undermost stress you know from a from a G force perspective,
passing through Earth's atmosphe that rough air that it passes
through for the next key moment is about I don't know,
let's say thirty seconds away, and that's where that first stage,
the main booster you have main engine cutoff or Miko,
and it's kind of an important moment because from there
(36:14):
you'll get the two stages separating, and then it's like
literally fully automated. It's I was going to say clockwork,
but it's rocket science and it's pretty flawless most of
the time.
Speaker 4 (36:26):
And it Mike thinking, who's the pilot from NASA veteran
on these three previous missions, we understand managing to ensure
that we get safely these people on board, these four
crew members up to ISS so pretty integral moment, and
we wonder just how their bodies are feeling on board
right now? Can you just give us a sense of
(36:47):
what it's like to experience this sort of force.
Speaker 3 (36:50):
I don't know, because I've never been on a rocket,
but no, it's immense stress on the body. We just
saw that perfect shot of first and second stage separations.
What you're looking at is the single engine attached to
the second stage at the base of dragon capsule. You
raise a really good point, which is on the crew
and you asked me earlier, but we got interrupted by
(37:11):
the flawless launch, frankly. But one of the interesting things
about this is that the commander of this mission, Xena Cardman,
she had been due to fly on Crew nine. She's
now leading Crew eleven. But this is her first ever
spaceflight and that's notable because this shuffle was caused, if
you remember, by the star Liner program and all the
different tests that kind of went wrong and the timeline slipped.
(37:33):
But that's a really interesting and notable moment. We're about
three minutes and thirty seconds into this sequence.
Speaker 6 (37:41):
The booster is it falls down to Earth.
Speaker 3 (37:42):
We're not seeing it in shot right now, will sort
of do its burns and flips pretty soon before it
comes into shot. But again, as it stands, this is
all nominal carrow, as they say, which means everything's going fine.
Speaker 4 (37:54):
Going fine for Crew eleven to then dock to relieve
Crew ten, instronauts who've been on to ISS for how long.
Speaker 6 (38:04):
Many many months, I think since the spring.
Speaker 3 (38:07):
The idea is that that there's a handover period, right
which is really which is really quite normal, and they
you know, in order to get there, have to dock,
and then there will be plans in place by NASA
and SpaceX to bring the existing crew back down there online.
(38:28):
And you know, like one of the good questions that
you raised earlier and that people always ask in our
coverage is like what.
Speaker 6 (38:34):
Are they going for? And part of.
Speaker 3 (38:37):
It is, like I'm repeating myself a little bit. ISS
gets decommissioned in about six years time. You know, it's
the end of the agreement. It's served its life, but
in the interim it needs maintenance. And so as part
of the cargo payload that's going up with Crew eleven,
there'll be materials to service the humans on board, but
also like the scientific apparatus and equipment that's up there.
Speaker 2 (38:59):
And let's just a little bit more. You mentioned Xena
cardman commander and.
Speaker 4 (39:04):
One of the few active female commanders in recent years.
Speaker 2 (39:08):
We've got Mike the pilot.
Speaker 4 (39:09):
You've also got Japan involved, Russia involved. This is geopolitics
at work here.
Speaker 8 (39:16):
Yep.
Speaker 3 (39:17):
So JACKSA, which is the Japanese Space Agency, has sent
Kimie A Yui. This is his second space flight. He
actually went up in space twenty fifteen. And then this
is the bit, right there's the reporting that we had
today that the interim NASA chief, which is Transport Secretary
Sean Duffy, had met with his Russian counterpart. Because the
(39:40):
context were SpaceX not around to do this, then America,
because of what's happened with Boeing and Starliner, would probably
rely on ros Cosmos, the Russian agency, to take American
astronauts to the International Space Station. Now, in this case,
there is a Russian astronaut aboard the capsule. His name
is Oleg Klattonov. It's his first trip to space as well.
(40:01):
And away from whatever is happening in geopolitics and in markets,
remember that the agreement between America and Russia CARRO is longstanding,
you know, the agreement literally to cooperate on not just ISS,
but move astronauts from Earth into into outer orbit in ISS.
Speaker 4 (40:20):
What's so interesting is the dominance of Eno Musk SpaceX.
Here we also think about Japan being in the mix,
and indeed Russia, as you say, alongside the United States.
It was but this week earlier, So much has happened
this week, but that Australia didn't manage to get a
suckered off the ground. Just where do we stand in
this so called space race.
Speaker 3 (40:41):
So SpaceX as a private company, but an American company,
dominates the vast majority of payload to orbit around eighty
five to ninety percent, including human and non human payload.
China is increasingly doing more. You will also remember that
like there are other nations around the world. Some of
(41:02):
the Gulf states like Ua have space ambitions. But it
goes back to what we were talking about earlier, right,
which is the economics of launch. As we see the
booster on the left hand side of the screen re
entering Earth's atmosphere, falling down using aerodynamics, but also the
paddles at the base to orient itself and slow itself down.
On the clock, by the way, I'm jumping around a bit,
(41:22):
but we're seven minutes in and the kind of key
moment is about forty seconds away where we should see
that booster land back to the landing zone. But to
answer your question, yes, SpaceX dominates, but there is pressure
coming from both government sector backed and private sector backed
rivals around the world, and we're.
Speaker 4 (41:42):
Just losing some connection there. We have it, will they
make a landing. It's like art ed there, we have it.
Speaker 6 (41:52):
Well, it's rocket science.
Speaker 4 (41:55):
Art and rocket science at work, but just remind us
because we've just been so in awe of not only
these landings and the reusable rockets, but the catch that
we've seen in the next iteration of spacecraft coming from
Elon Musk.
Speaker 3 (42:11):
Yes, so Falcon nine is SpaceX's high volume vehicle and
launch system. That's what we're looking at here with Dragon
caps you're on top. But they also have Falcon Heavy,
which is used for basically higher density satellite payload. It
hasn't taken humans. And then Starships the next phase. Starship
(42:32):
the biggest rocket that Humankind's ever built, and I think
Elon Musk has said on X that the next full
test of Starship is going to be in the next
month or so. The mechanism for the Starship booster in
that system is, as you say, not to land it
on a landing pad, as we just demonstrated with Falcon nine,
(42:52):
but to catch it. And you know, we can't do
this right now because we're carrying the launch live, but
go on the internet and look at how that works.
That bit they've kind of done. They've done it successfully.
It's the ongoing spacecraft part of Starship that they're still
working out Let's.
Speaker 4 (43:10):
Talk a little bit about economics here of NASA as well,
because we just see the energy behind wanting to put
money to work behind Elon Musk SpaceX, and the rounds
get larger and the valuation just sols.
Speaker 2 (43:22):
But NASA itself is trying to do more with less.
Speaker 3 (43:25):
It's well, I mean, and SpaceX has been at the
core of that story, and it's something that's started in
the Obama administration. You know, again, the economics of space
have changed. SpaceX has never disclosed the per seat cost,
but you can do the math based on the disclosures
that we do have, and it's several million dollars per person.
(43:48):
Compare and contrast with what else has been out there
from United Launch Alliance. And let me just catch this
key moment here.
Speaker 6 (43:56):
Look at that.
Speaker 19 (44:00):
Do you see Dragon coast into its orbit.
Speaker 8 (44:06):
And a wonderful view.
Speaker 18 (44:07):
There is Dragon Endeavor with crew eleven on board.
Speaker 6 (44:12):
Safe inspiration confirmed and safe.
Speaker 17 (44:14):
In Dragon Cheap engineer on dragging the ground. Containa, Mike
kem here Hole, welcome to orbit on behalf of the
entire Falcon team. We thank you for flying with Falcon
today and wish you a great mission. Dragon will take
you from here over to'll launch director for a few words.
Speaker 3 (44:34):
On behalf so Caro, what that was was dragging the
capsule and the left hand side of the screen you
see the crew inside there, separating from the second stage,
and now they're in orbit, right, And I'm just going
to give you a quick statistic which is very interesting.
We were scrubbed on Thursday, twenty three hours later.
Speaker 6 (44:52):
We did launch on.
Speaker 3 (44:53):
Friday, but because of where ISS was lined up in
with Planet Earth. For a layman's explanation, actually what's going
to happen is that all being well and equal, Crew
eleven and Dragon will arrive at the ISS at exactly
the same time on Saturday morning, about three am, eas
in time as they would have done if they had
(45:15):
launched yesterday. And that kind of speaks to speaks to
rocket science, doesn't it.
Speaker 4 (45:23):
This view of space and analysis of curvature of Earth
and speed at which we rotate in rbit, it sometimes
works beautifully in a lignes as this entire viewership has
been seeing throughout the show of what's happening currently live
with Falcon nine and how we start to see the
astronauts now relieve, Now just go back to the economics
(45:44):
a little bit, because what we're expecting now is they
are going to reach iss they're going to be relieving
Crew ten.
Speaker 2 (45:50):
But in the future, what we see fewer astronauts on.
Speaker 3 (45:53):
Board maybe I mean again, the movement here is for
the private sector to build spaces and so you know
the cadence of that happening. Who knows this crew will
be there for six months. NASA's thinking about maybe eight months,
you know, relieve Crew ten, they were there since March.
These come home, but this missions to success so far.
Speaker 4 (46:16):
We continue to see how the astronauts celebrate on board.
As you mentioned, Japan, the US and Russia represented. That
does it for this very global and very intergalactic edition
of Bloomberg Tech.
Speaker 3 (46:30):
Out of this World. Check out the podcast. You know
where to find it. We publish it everywhere. Lots of
you listen to it. It's been a great week. This
is Bloomberg Tech.
Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is a
live from coast to coast with Caroline Hide.
Speaker 2 (00:17):
In New York and Eva Low in San Francisco.
Speaker 3 (00:22):
This is Bloomberg Tech. Coming up, Apple and Amazon end
this week. In tech earnings, we'll discuss Apple's global growth come.
Speaker 4 (00:29):
Back, plus Reddit surges on a record profit we discussed
with the company's COO Gen Wong, and we'll.
Speaker 3 (00:36):
Be joined by Roadblock CEO Dave Bazooski to break down
the company's earnings and it's advertising pushed later this hour.
Speaker 4 (00:42):
But let's get to the macro perspective first, ed because
it's pretty ugly out there. In fact, we're having the
worst day and announst that one hundred since April, the
worst week since May. And that's as we get that
so called resilient jobs market with some cracks showing and
some revisions for previous months. When it comes to the
labor force, that bagstown stocks sends bonds higher. But I'm
also looking well the implications of tariffs when we are
(01:04):
fifteen point two percent general average now for tariffs on
goods coming into the United States. There's karity there, but
is there long term negotiation still to come. What does
it mean for tech stocks? More broadly, let's get to
Klee lines, just the breakdown Klee of what we learned
on where countries are standing right now.
Speaker 5 (01:23):
Well, Caroline, there's many different layers to this. The global
baseline minimum teriff rate will stay at ten percent, despite
some previous suggestions from the President that it could go higher.
But indeed the teriff rates will go higher for countries
that have larger trade surpluses with the United States, from
fifteen percent to well beyond that for some countries who
were able to secure deals with the United States an advancer,
of course, had already received letters from the President. That
(01:45):
includes the likes of Canada, for example, which will have
a thirty five percent tariff on it's goods, though there
is a carve out for those that are compliant with
the USMCA Trade Agreement, or a country like Switzerland, which
will see a thirty nine percent rate in aggregate. According
to our estimates here at Bloomberg e if these tariffs
go into effect and stick, it will take the average
tariff rate for the United States up to fifteen point
(02:06):
two percent from the current thirteen point three percent, which
brings us back to levels last scene in the World
War two era, and it's well above the little more
than two percent rate on average that we saw before
President Trump took office. That said, it is still an if.
According to the orders that the President signed last night,
these duties will not begin to be collected until August seventh,
so about a week to go here.
Speaker 2 (02:27):
That does leave some.
Speaker 5 (02:28):
Wiggle room for countries to either continue negotiations, try to
reach deal, or maybe get an extension, like we saw
with Mexico yesterday, which was able to secure a ninety
day extension of their current agreement. Also, we need to
consider that China is still a question mark that August
twelfth deadline is looming. The President has not signed off
yet on an extension for the trade detente between those
(02:48):
two countries, and he also had some measures that do
seem aim specifically at China in what he signed last night,
with a forty percent tariff that is going to be
applied to so called transshipped goods, though it's not exactly
clear how those rulings will be made or how that.
Speaker 2 (03:01):
Will be enforced.
Speaker 5 (03:01):
Also unclear is what sectoral terraces could still come into
the picture, as they're still ongoing Section two thirty two
investigations into things like pharmaceuticals and semiconductors, and we're awaiting
those outcomes as well.
Speaker 4 (03:12):
Tailey lines with a breakdown. Thank you so much. Look,
let's get to your micro picture because there's trade, but ed,
you're looking at earnings.
Speaker 3 (03:20):
Yeah, and earnings is a big story in the world
of technology this morning. Amazon is an AI story, and
it's a cloud story. Look at the drop on the
stock significant. The concern is the outlook for operating income.
So much revenue comes from Amazon dot Com, but the
majority of operating income from AWUS, and the outlook seen
as weak or conservative. But AWS in the period Gone
(03:40):
grew seventeen percent in a quarter where Microsoft Azure grew
thirty nine percent and a quarter where Google Cloud Platform
gained some territory.
Speaker 6 (03:49):
There's pressure there.
Speaker 3 (03:50):
Apple beat across every metric in the June quarter GONE
and told us in the September quarter mid to high
single digit percentage growth.
Speaker 6 (03:58):
But everyone this.
Speaker 3 (03:59):
Morning carrow asking about pull in or pull forward, And
what Apple said was in April in the United States,
one percentage point of growth was people front running tariffs,
but they grew ten percentage points do we believe them.
The market's down one point six percent.
Speaker 4 (04:14):
Let's get more analysis with an investor. Tony One's with
us is t row Price Science and Technology Fund portfolio
manager exposure to Apple. What do you think in terms
of Apple's seeming resilience and growth in China.
Speaker 7 (04:28):
Yeah, I think that their you know, product is still
in demand, and they did some pricing adjustments to make
it more attractive to fitting the subsidies, and at the
end of the day, I think it's still a really
high quality of product and brand. I think that what
matters going forward is their product innovation around AI and
improving series.
Speaker 8 (04:47):
You know.
Speaker 7 (04:47):
I think that you had a period where Huawei came
back and took share back, and it was a competitive
environment made Apple kind of adjust a little bit to
bring more value.
Speaker 8 (04:56):
But I think it's encouraging that things are getting better
in China.
Speaker 3 (05:00):
They're growing again, Tony, I want you to help me
with the map here a little bit. So April largely
one percentage point of growth in the Gune quarter was
pull in pull forward from tariffs, and then Apple told
us that they would grow mid to high single digits
in the September quarter. That would indicate that there isn't
(05:20):
some kind of tariff front running here, that Apple's just
growing because it's growing. Do you buy that?
Speaker 8 (05:27):
Yeah, well, I think that, you know, it's kind of
hard to tell, to be honest.
Speaker 7 (05:31):
I think that there was a period when you were
rushing to Apple stores to buy some iPhones before the terrorists,
but I feel like that quickly subsided and you know,
that was resolved relatively in short order. And so I
think that what matters here is the forward look. You know,
as investors, you're probably looking more towards what they do
(05:52):
with the next iPhone cycle. Fold the ball in addition,
like services was really strong, and so there was a
fear that what happens with uh, you know, Google search as.
Speaker 8 (06:03):
Well as kind of the the app store ruling where
people are circumventing the app store.
Speaker 7 (06:08):
It seems like that's like actually been okay, and so
going forward, I think that it's less about like was
there a little pull in or by more of the
iPhone cycle coming coming up that people aren't focused on.
Speaker 4 (06:19):
So Tony, when does the real pivot point come? When
is it that you have confidence to add exposure and
feel that Tim Cook and the team are on top
of generative AI, of the opportunity at hand of innovation.
Speaker 7 (06:35):
Look, I think Tim Cook and the team they're really
talented and their world's class manufacturers and you know, their
product leadership.
Speaker 8 (06:44):
You'll be built that over decades.
Speaker 7 (06:46):
And so I don't think you can count about in
terms of where the stock at has been. It's like
the market break considerably in a market that's been super
beta fuel and risk taking. And so you know, if
the market turned like Apple, I think is a safe table.
And then if you look at kind of the momentum
they're building like things, things are probably going to get
(07:07):
better over the next twelve months. And I do think that,
you know, they can do a lot within AI. They're
probably you know, not rushing to commit to anyone one partner.
You know, they own the ecosystem and so to me, like,
as long as the iPhone is still the main, you know,
(07:28):
channel for AI, I think that's that's really important.
Speaker 3 (07:32):
Talent wasn't mentioned on the call, but the final question
was about M and A in the context of AI
and what Tim Cook said, And I know because I
put it in the top live blog and then I
screenshotted it. We are very open to m and a
Tim Cook two fifty seven pm Pacific time, Thursday, July first.
Is that a starter gun or signal particularly to investment
(07:55):
bankers or do you expect Apple to stay sort of
muted in disciplined on that front, I think.
Speaker 7 (08:01):
The Apple is very muted, and I always say muted,
but they're very disciplined, and I think that they have
like a very very strong focused in what matters in
their direction. I mean, for a long period of time,
you can put all their products on one table and
to be really great at what they do. And so
I don't think they're going to be muted. I think
(08:22):
they're going to be disciplined and focused, and they have
made acquisitions that can really I think, plug into the
ecosystem enhance their talent.
Speaker 8 (08:32):
I don't think they're going to go to a really.
Speaker 7 (08:34):
Big, splashy acquisition, but if you take a step back,
they're generating a ton of capital and there's a lot
of potential for improvement.
Speaker 3 (08:43):
And via em and a Telly one on the tray price.
Great to have you back on Bloomberg Tech. Thank you
very much. Let's stick with earnings and turn in part
to Amazon.
Speaker 6 (08:52):
I'm actually going to.
Speaker 3 (08:53):
Keep going with Apple as well with Laura Martin, who
covers the broad gamut of tech. But and listened you
were listening there to Tony Wright. I just wondered if
you had any response difference of opinion on any of
the ground that we covered.
Speaker 9 (09:08):
Yes, I would be much more negative.
Speaker 10 (09:10):
I think the Apple stock cannot work without an Apple
iPhone replacement cycle. And Tim Cook said on the call
that they have twenty AI jenerative AI capabilities involved in
its current iPhone. But next year we're going to get
really the Apple intelligence step up.
Speaker 9 (09:28):
So that's two years after.
Speaker 10 (09:29):
I originally promised it, which means we're not going to
get an iPhone replacement cycle this year in September. It
would be next year at the earliest, which means I
don't think the stock can work. I don't think it
can outperform. Meanwhile, when you listen to Alphabet, they've got
Google Gemini, and they are incorporating jenerative AI features in
every one of their products, including Android, which is the
(09:51):
primary competitor here. So you and I aren't incentive to
go out and replace our iPhones, which means our iPhones
are getting another year older, another a year older, and
at some point, if the one of the Android version
runs ahead with some cool feature that all of us
want to try or can't live without, we are more
likely to shake loose from that iOS ecosystem because they
(10:15):
aren't showing us anything that keeps us there as these
iPhones age and we want to replace our iPhones with
something new.
Speaker 4 (10:21):
Meanwhile, don't She's doing a lot for Sansung foldable phones
and plenty of others on the market right now. I
just pivot therefore to Amazon, which does have hardware. But look,
we're looking at the growth story of cloud right now.
In AWS, seventy percent was exactly where Amnis wanted it
to be, but did just pale into comparison compared to
where Azure was and where Google is in terms of cloud.
Speaker 10 (10:44):
Yeah, so what they said was that there was real
margin pressure here, right. Margins went to thirty two percent,
down from thirty nine percent last quarter, and like Google's
cloud margins were through the roof, so were Microsoft.
Speaker 9 (10:58):
So when you have they're all capacity constraints.
Speaker 10 (11:01):
So we would have forgiven Amazon the seventeen percent growth
rate and revenue if their margins had stayed at that
very high sort of forty percent level, because they're out
of capacity, so they should be like charging a lot
for anybody that uses demand in their cloud.
Speaker 6 (11:15):
But they didn't.
Speaker 10 (11:16):
They were under margin pressure, so I think people didn't
like that. I think that My opinion is they're losing
business because their competitors are price competing and taking away clients.
You know, Apple's still the biggest. There's sixty five percent
bigger in cloud than the next closest guy they in
the business. And he made the point that eighty five
percent of companies are still on physical servers on premise
(11:37):
and all of those companies need to move to the cloud.
And Amazon it's the biggest. So I think this is
a short term problem. But boy is the market mad.
I mean, investors are mad about these numbers coming out
of Amazon, but.
Speaker 4 (11:48):
They're quite often mad at Amazon because Amazon is willing
to say sorry, profit tomorrow, profit the next quarter, for now,
I invest in my business. Did he sound bullish enough
on the general to ay opach opportunity, because goodness, they're
intertwining it left, right and center as well.
Speaker 10 (12:05):
You know, maybe I think, look, I think this is
the right guy in the seat right.
Speaker 9 (12:09):
This guy is the one who started founded cloud.
Speaker 10 (12:12):
And did extent Cloud is either under siege or doing
something wrong, or Wall Street's just mad.
Speaker 9 (12:17):
This is the guy to fix it like this isn't
a CEO from a different business, this is his core business.
Speaker 10 (12:22):
I think Wall Street's a little mad that they're spending
money on Kuyper, which is not making revenue. Alexa plus
ten years, we still don't have a dollar of revenue,
but a ton of expenses, and they're doing same day
delivery in urban centers, all of which feels.
Speaker 9 (12:36):
Like a lot of capital to spend where you're a price.
Speaker 3 (12:40):
Can I ask you, Andy Jesse said, quote very early
days in artificial intelligence across all businesses, very quickly. Do
we have any better understanding of Amazon's AI story than
we do Apples, which gets, of course scrutinized a lot.
Speaker 9 (12:55):
Yes, much better. They're incorporate.
Speaker 10 (12:57):
They have a very clear AI strategy w is to
host everybody else's AI cloud on theirs. Remember Google's proprietary,
Microsoft proprietary. Amazon's strategy is to host all large language models.
Speaker 9 (13:10):
It just wants the cloud fees.
Speaker 4 (13:12):
Laura Martin Kimming it shortened sweeten to the point we
so appreciate stay well, have the good rest of the weekend. Meanwhile,
coming up we stick with tech earnings one that actually
Laura Covers has read it. The COO Jen Wong was
fair to discuss explosive sales.
Speaker 2 (13:25):
Both as a bluebo.
Speaker 3 (13:27):
Tech shares have Reddit absolutely surging today, up more than
(13:48):
twenty percent, biggest jump since the first week of April.
The company reported its most profitable quarter today and projected
sales for the third quarter that were above and this estimates.
Speaker 6 (13:58):
Reddit COO Gen Wong joins.
Speaker 3 (14:00):
Us now for more and it's like one of those
quarters where should we just start with the basics. Advertising
was really strong in the cord of gone. Why was
it so strong? Which geographies were good? What are you
doing that makes Reddit so attractive relative to other platforms?
Speaker 11 (14:15):
And thanks for having me.
Speaker 12 (14:15):
It was a really strong quarter across the board for Reddit,
and in terms of revenue, we saw broad based strength
across all the verticals. We saw geographic strength in the
US and in the rest of world, growing over seventy
percent in both geographies, we.
Speaker 11 (14:33):
Saw users grow twenty one percent.
Speaker 12 (14:35):
Obviously, advertising revenue group by eighty four percent year year,
which is truly differentiated. We grew active advertising by fifty
percent year every year and you can see across the
funnel both our lower funnel convergent objective plus brand, we're
both big contributors to the results in Q two.
Speaker 11 (14:57):
So again, broad based strength in.
Speaker 2 (14:59):
The it's surprised and investors a surprised analysts.
Speaker 4 (15:02):
Did any of it surprise you, Jen, any verticals that
surprised you, any geographies that surprised you.
Speaker 11 (15:08):
I think this is.
Speaker 12 (15:09):
A continuation and an output of our investments.
Speaker 11 (15:13):
We feel really good about our strategy and our roadmap.
Speaker 12 (15:16):
We've been investing in our capabilities to make every impression
more valuable for marketers over the last couple of years,
working on that lower funnel objective, and I think now
we're seeing the benefits of all the value we're.
Speaker 11 (15:29):
Delivering to our customers.
Speaker 12 (15:31):
The team's been executing really well. We've been making investments
and expanding our sales team across verticals, across geographies that's
coming in and supporting the broad based strength. So we
feel really good about the investments we've made. I think
our work is working.
Speaker 3 (15:48):
I just typed who is Jen Wong into Reddit answers,
and it says Genwong is a prominent figure in the
world of tech and business and COO of Reddit, but
I find it an interesting tool. Rights supposed to be
human led answers, but might we see ads place there?
You know, people talk about this a lot. How we
monetize on that, It's.
Speaker 12 (16:09):
A great question, I think Before we get to monetization,
which I think is a huge opportunity for for Reddit,
in that space and the area of search, I think
we have an opportunity to build a very distinctive destination
search experience. Reddit is where people come for real perspectives
from real people, not looking for just the summary, but
(16:33):
looking for what the context around. You know, why did
you think that this was the best running shoe? Because
you live in heavy trails a rocky area. You know,
you're a long distance run or a short distance run.
Speaker 11 (16:45):
Like all those details of.
Speaker 12 (16:46):
Real human experience are brought to life in Reddit answers
and Reddit Search.
Speaker 11 (16:52):
What we're doing is bringing together this capability.
Speaker 12 (16:55):
In Reddit Answers, which is an LM on top of
the incredible conversation on Reddit, and integrating that with core
Reddit search so that it becomes a more fulfomed experience.
And then as we continue to grow the use of
that destination search.
Speaker 11 (17:10):
I think monetization follows.
Speaker 12 (17:12):
I mean, it's a lot of those queries are incredibly
just naturally commercial nature, or it's people trying to make
decisions and allocate resources and buy things, you know, to
that fit their lives.
Speaker 4 (17:25):
Yeah, I mean monetization has been something you've done well
with other deals for licensing your own data to generative
AI large language models. But Jen, there's a little bit
of beef going on, perhaps with one with Anthropic. Can
you give us any update as to what's happening with
your relationships and further content licensing deals.
Speaker 12 (17:44):
Yeah, I mean, I won't comment on litigation, but I
will talk about data licensing. I mean, you know, we
these were our first commercial relationships. We're a year a
year and a half in. I think we've learned a
lot and we're still learning. I think we're open to conversation.
I think what we're learning is that we and frankly
everyone can see reddits contribution to these lms, how often
(18:10):
Reddit is cited, how important Reddit is for people to
get the perspective that they're looking for.
Speaker 11 (18:17):
And when we see that, you.
Speaker 12 (18:18):
Know, I think it reveals that the fact that Reddit,
I think has never felt more essential to the Internet
and to helping people.
Speaker 11 (18:27):
I think what we get.
Speaker 12 (18:28):
Excited about is when we look at this is the
opportunity for ourselves, the opportunity for us to build products
around the decades of conversation on Reddit, Reddit answers and
search is one area obviously growing those communities.
Speaker 11 (18:44):
In our core product. So we get really excited about that.
Speaker 12 (18:48):
And you know, I think overall the value of Reddit
and conversation in this world of AI is going up.
Speaker 3 (18:55):
You know, a lot of your job is flying around
the world. International markets just very quickly, how start going
getting dollars from abroad and very quickly also languages as well.
Speaker 12 (19:05):
Yeah, I mean international is incredibly important to us. It's
about twenty percent of our revenue, and international revenue from
advertising grew over seventy percent in the quarter, so it's
been a growth driver for us. We're particularly active in
Europe and Amea. We're seeing really nice growth in our
target countries where we're applying AI for machine translation to
(19:28):
have global conversations in different languages so that people that
don't have language friction. We're also growing local communities, which
we're excited about doing some partnerships and sports and entertainment
that are really simulating the growth of local communities like
telenovelas in Brazil and football in Germany. And that user
(19:51):
growth that we're supporting then obviously creates a monetization opportunity.
Speaker 4 (19:56):
Jen Wog, I've read it. It's wonderful to have time
with you. Thank you very much. Indeed, now coming up
Pigma shares, Actually are they managing to rise even on
day two after that monumental launch. We'll talk about the
IPOs big winners and what's next.
Speaker 2 (20:09):
This is blue Bag tech.
Speaker 13 (20:23):
Shares.
Speaker 4 (20:23):
A Figma sold a whopping two hundred and fifteen percent
on their first day of training. That's the largest first
day pot for a US trading company, raising more than
a billion in at least three decades. That's according to
Bloomberg Data. So is this positive, this strength or is
that money left on the table for the design software maker.
Let's get to Katie Ruth for her analysis. We're actually
still clinging onto some gains in a downmarket to Dave,
(20:46):
and Katie feels the demand is so insatiable her three.
Speaker 14 (20:49):
Clearly the window is open for tech listings, or especially
open for Pigma. Yeah, you ask a good question about
the their money left on the table of these favorite
debate obviously the cell side, which is primarily the company,
but also the top shareholders.
Speaker 13 (21:06):
He sold five percent of their stakes.
Speaker 14 (21:08):
Yes, they would have I'm sure loved to sell for hire,
and then you know they could have raised more money.
But I think there's a real question over what time
frame do you evaluate a first day pop on. If
you look at twenty twenty one, a lot of those
stocks eventually bottomed out.
Speaker 3 (21:24):
Thinking about some of the conversations Caroline had yesterday down
at the NYIC, just fantastic classic ipo stuff right, adjusted
gross margin of ninety two percent. Is this just because
everyone loves a high margin software name, or is there
some retail trading here?
Speaker 6 (21:39):
What's really happening?
Speaker 13 (21:40):
Well, I think if you look at it's not just
this one.
Speaker 14 (21:43):
There have been several recent tech IPOs that saw big
pops on the first day and in the recent trading,
and so I think what you're seeing here is there's
pent up demand for new tech listings.
Speaker 13 (21:57):
Twenty twenty one was a blockbuster.
Speaker 14 (21:59):
Year, and there was an eighteen month period where there
were zero tech IPOs, and when they first started to
come back, the market was a little bit skittish. But
I think they've decided they want tech stocks and they
want more of them.
Speaker 3 (22:12):
I think that in twenty twenty five we've already picked
twenty twenty four in terms of volumes, which is exciting
Bloomberg Katie Ruth, thank you very much. Now coming up
on Bloomberg Tech when it were joined by the Roadblock
CEO David Zuki to break down the company's earnings. It's
advertising push and much much more. Are just a fantastic
way to end a week in big tech and big
tech earnings.
Speaker 6 (22:32):
Stay with us. This is Bloomberg Tech. Welcome back to
(22:57):
Bloomberg Tech.
Speaker 3 (22:57):
There's some kind of macro level economic concerns out there
in the market. I'm looking at the Magnificent seven, that
collection of megacap tech. Of course, within that Apple and Amazon,
which is actually the biggest points drag of most indices,
is an earning story. But at the same time, we
covered off area in the show Carro tariffs and tariffs
having an impact in different ways in some of those companies.
(23:19):
We'll get to more of that later in the Hour
one earnings. We haven't got too yet is coinbase revenue
projection missing estimates. But what I find so interesting about
coinbase is that its performance is directly tied to volatility
or in this case, a lack of volatility in crypto markets.
But that stock drop of sixteen percent is its biggest
drop since March. Very interesting, real calculation on one single name.
(23:40):
But there are so many to get in.
Speaker 4 (23:42):
There are, And let's go back to roadblocks because the
gaming platform reported phenomenal booking increases more than fifty percent
in the last quarter daily active US account toping one
hundred and eleven million shares, So you see still trading
higher after the earnings posted yesterday morning. Moeblock's CEO David
and Bazuki joined us now Dave across the board. Growth
daily active use is particularly the older cohort. I'm looking
(24:03):
at hours engaged revenue bookings.
Speaker 2 (24:06):
We're saying you raise your guidance.
Speaker 4 (24:08):
These viral experiences grow a garden, for example, how much
are they contributing to this growth?
Speaker 15 (24:15):
Hey, great to be here, and we have created an
essential really the conditions to grow a garden, in this
case growing amazing creative new experiences on roadblocks. In addition
to grow a garden, which is a cultural meme. Right now,
there's five experiences on roadblocks with more than ten million
daily active users, and I want to highlight in addition
(24:39):
to that great growth we saw, we saw thirteen and
up users grow daily active users sixty four percent.
Speaker 16 (24:45):
Year on year.
Speaker 15 (24:47):
We have a vision of ten percent of the global
gaming content market running on our platform, and this really
explosion of great new hits.
Speaker 16 (24:57):
It supports that thesis.
Speaker 15 (24:58):
I also want to highlight even without Grow a Garden,
we would have reported an amazing Queue two with great
year on ear growth rates.
Speaker 4 (25:08):
Brook Covens there, Grow a Gardens there. Just delve into
these hits that you have. How much revenue do they
sort of supply to you? Can you break it out
on an individual win basis?
Speaker 15 (25:21):
Well, I want to highlight these hits. A lot of
them have been created in the last year. In fact,
four of the top five experiences were created in the
last year. Part of our vision is there's an enormous
headroom to innovate in the gaming space around how games
are created, how people consume them, how they're social, all
(25:43):
of this, and we believe this innovation is driving the
ability for creators to make awesome new experiences.
Speaker 16 (25:51):
On the platform.
Speaker 15 (25:52):
You know, we're starting to see some of these hits
go global want to highlight. For example, a pac DAUS
grew over seventy six percent year on year, and we
still have a lot of headroom. We're we're only about
three percent of the global gaming market running on our platform,
and our vision is to get to ten percent.
Speaker 3 (26:13):
Dave, I've been able to get with your team and
talk a little bit in recent months about advertising, and
one of the things I think people don't necessarily understand
about roadblocks is advertising is a revenue stream for you,
but also for the deads that the creators themselves. But
I think I'm right in saying you've never really given
us a dollar figure on how it's going. Would you
just update us on the ecosystem and the wins that
(26:35):
you see for roadblocks.
Speaker 15 (26:37):
We do think there's a significant advertising opportunity on the platform,
and you're exactly right. All of this growth we've been sharing,
you know, bookings growth of north of fifty percent in
Q two was driven not by advertising, but by people
spending robucks on the platform. That said, there's several categories
(26:58):
of experiences and creators that advertising may be the best
way for them to make future revenue. Highlighting Typically our
vision is advertising for older users, not for younger users,
because we're already so healthy monetarily there, and we have
launched video advertising on the platform.
Speaker 16 (27:18):
We just in the last week open it up for
more creators.
Speaker 15 (27:22):
I will assure you if and when we hit ten
percent of the global gaming market space, that advertising will
be a key part of that top bookings line.
Speaker 3 (27:32):
I kind of want to stick with the creators because
I'm trying to always understand the ecosystem. So one thing
that you've done is help creators get licensing deals. They
might create a game, that game might be franchisable.
Speaker 6 (27:45):
Why do that?
Speaker 3 (27:46):
But also, like, are you kind of taking the liability
on copyright and on legal and everything else that comes
with a deal like that?
Speaker 15 (27:56):
We aren't really And what we've seen two years ago,
people might have thought, well, you're not going to have
any prime sports brands on your platform, and then all
of a sudden, we have, you know, NFL Universe, a
partnership between the NFL and an existing developer on the
platform be extremely successful. What we've started talking about with
(28:18):
our IP platform is the ability for great brands, whether
it's for example, Stranger Things, there's Quid game from Netflix
being available for creators on the platform who want to
integrate the brand and really create a win win in
that these brands can have a lot of people interacting
(28:39):
with them, it can drive engagement within them. So there's
a lot of opportunity in the future to connect great brands,
great ip with the creative energy of the developers on
our platform.
Speaker 4 (28:50):
I like that win win idea and the revenue share
that goes to the developers. Also what's interesting is developers
are buying from these one off makers say that grow Garden,
I think as a team who still owns about half
be sold off the other half of his business over
to New Zealand splitting point studio.
Speaker 2 (29:06):
Are you helping facilitate that m and A. How do
you see your role there?
Speaker 15 (29:11):
We would like to more and more make a very
liquid market there. And at our Roadblocks developer conference a
couple of years ago, I shared that as we have
a larger proportion of the gaming market running on Roadblocks,
it's not inconceivable that there will be a billion dollar
studio on the platform. We're well into the nine figures
(29:33):
hundreds of million hands of dollar type studios and grow
Garden was a great example of an initial small team
working with Jendell, who acquired part of it, and it
was a deal that was a win win deal. The
original creators did very well and Grow Garden has been
refined and tuned into now the largest simultaneously played game
(29:54):
in the history of the Guinness Book of World Records,
going over twenty million concurrent players.
Speaker 16 (30:01):
A few weeks.
Speaker 3 (30:01):
Ago, Dave, about three weeks ago you came onto the
program and discuss with me generative AI video based age verification.
Speaker 6 (30:11):
In the interim.
Speaker 3 (30:11):
On July twenty fifth, we got the Online Safety Act,
and which will have an impact on you. Could you
just quantify how that those parameters might impact active users
or engagement just quickly.
Speaker 15 (30:24):
I want to highlight we have always had safety as
one of our top priorities, and we're not waiting for
the law or legislation. We've innovated with age estimation on
our own because we want to keep people on our platform.
Roadblox is a place where we filter all the texts
and the voice, where we monitor for critical harms, where
(30:46):
there's no image sharing or any of the things that
might happen from that. So age estimation we took leadership
here in innovating and we think it's going to set
the standard for the industry.
Speaker 3 (30:58):
Roadblock CEO Data. It's great to have you back on
Bloomberg Tech. Thank you very much. Now coming up, we're
standing by for SpaceX crewed Falcon nine rocket launch headed
to the International Space Station. Scrubbed yesterday. The countdown continues
for today.
Speaker 6 (31:13):
We'll be right back. This is Bloomberg Tech.
Speaker 3 (31:29):
We're just a couple of minutes away potentially four astronauts
set to launch to the International Space Station. Live shots
of NASA's Kennedy Space Center in Florida, Complex thirty nine A.
The astronauts on the SpaceX Falcon nine rocket in Dragon capsule.
This Dragon capsule Carrow has flown, will be at sick flight,
which is an interesting data point and milestone in and
(31:50):
of itself. I say potentially because I was looking at
those clouds. They're a bit worrying. I know that SpaceX
and NASA a bit worried as well.
Speaker 2 (31:57):
Just talk about just.
Speaker 4 (31:59):
What this means for Fulcan nine to zero and the
symbolic nature. It was but a few weeks ago that
Elon Musk was threatening to decommission it almost in his
tet tet with President Trump.
Speaker 3 (32:10):
Absolutely right and absolutely so you know, NASA and America
rely on SpaceX to move astronauts and human beings to
and from ISS. If this mission is successful and goes
off today, two hundred and ninety people will have been
to ISS in its history. Sixty eight of those will
have been flown by SpaceX in the modern era. So
(32:30):
it gives you a sense proportionately of how much SpaceX
has dominated this space SpaceX has been warning us about lightning.
We were scrubbed yesterday. But that is the story that
you need to understand. You know, SpaceX is the de
facto market leader of moving not just humans but payload
to orbit generally speaking.
Speaker 4 (32:49):
Yeah, and go back to the fact that this is
a sixth flight. It was originally commissioned for five flights.
But they're trying to sweat this asset, right, This is
all about bringing.
Speaker 2 (32:57):
The cost down.
Speaker 3 (33:00):
Yeah, I mean, look, the economics have changed vastly under SpaceX.
I'm keeping an arm on the clock because if we
tip over T minus one minute, it's a pretty good
signal that we will be launching in the sixty seconds time.
You know, the ISS has a limited shelf life. It's
going to be decommissioned beyond twenty thirty and literally crashed
into the ocean. But it needs servicing, and so you know,
(33:23):
SpaceX right now is the only option. We have some
reporting this week that the interim chief of NASA, which
is Transport Secretary Sean Duffy, met with his Russian counterpart.
There will be a Russian astronaut aboard this Crew eleven mission.
But if SpaceX wasn't there, then the only other option
for the United States would be Russia, which in this climate, Yeah.
Speaker 4 (33:42):
They'm been told to go for launched and this is
symbolic from a geopolitical perspective on who is on board.
Speaker 3 (33:49):
Yeah, we'll get to the crew. But you know, I
think this might be a first for Bloomberg Tech if
we ever carried a launch live.
Speaker 6 (33:55):
I don't know. But with ten seconds on the clock,
let's listen.
Speaker 17 (33:58):
In ten nine eight, seven, six, five four three two
one kitson pitches full power and lift.
Speaker 6 (34:13):
Go Falcon, go back, go through.
Speaker 18 (34:18):
Together we rise as a space that Scroll eleven the
heads up to the International Space.
Speaker 1 (34:23):
State vehicles with pitching down range.
Speaker 18 (34:25):
One point seven million pounds US phenomenal propelling Falcon nine
as the vehicle pitching down range and making its way
up the East coast and we'll soon join Expedition seventy
three of the Orbiting Laboratory. So far getting good call
outs on that first stage performance.
Speaker 19 (34:47):
We are now t plus thirty five seconds into the
Crew eleven mission on board Dragon and Falcon nine. The
Thalcon nine engines down are throwing down.
Speaker 2 (34:58):
To power in colementary or not not to.
Speaker 19 (35:01):
Help pass through the period of max Q or maximum
aerodynamic pressure on the vehicle during a cent max qu.
Speaker 6 (35:10):
You just had max.
Speaker 13 (35:11):
Q right there.
Speaker 16 (35:15):
Falcon nine is supersonic hell.
Speaker 18 (35:22):
One minute nine seconds into what is a little bit
more lost up a nine minute flight up till as
Dragon continuing.
Speaker 3 (35:33):
Got so currently traveling fifteen hundred kilometers no hour is
the SpaceX Falcon nine with Dragon on top, goes through
Earth's atmosphere or get up to around like fifty five
hundred and fifty six hundred miles per hour. When it
gets to that orbital height, you're talking like seventeen thousand,
five hundred miles per hour. They called the moment of
max Q carro, which is the moment where the rockets
(35:54):
undermost stress you know from a from a G force perspective,
passing through Earth's atmosphe that rough air that it passes
through for the next key moment is about I don't know,
let's say thirty seconds away, and that's where that first stage,
the main booster you have main engine cutoff or Miko,
and it's kind of an important moment because from there
(36:14):
you'll get the two stages separating, and then it's like
literally fully automated. It's I was going to say clockwork,
but it's rocket science and it's pretty flawless most of
the time.
Speaker 4 (36:26):
And it Mike thinking, who's the pilot from NASA veteran
on these three previous missions, we understand managing to ensure
that we get safely these people on board, these four
crew members up to ISS so pretty integral moment, and
we wonder just how their bodies are feeling on board
right now? Can you just give us a sense of
(36:47):
what it's like to experience this sort of force.
Speaker 3 (36:50):
I don't know, because I've never been on a rocket,
but no, it's immense stress on the body. We just
saw that perfect shot of first and second stage separations.
What you're looking at is the single engine attached to
the second stage at the base of dragon capsule. You
raise a really good point, which is on the crew
and you asked me earlier, but we got interrupted by
(37:11):
the flawless launch, frankly. But one of the interesting things
about this is that the commander of this mission, Xena Cardman,
she had been due to fly on Crew nine. She's
now leading Crew eleven. But this is her first ever
spaceflight and that's notable because this shuffle was caused, if
you remember, by the star Liner program and all the
different tests that kind of went wrong and the timeline slipped.
(37:33):
But that's a really interesting and notable moment. We're about
three minutes and thirty seconds into this sequence.
Speaker 6 (37:41):
The booster is it falls down to Earth.
Speaker 3 (37:42):
We're not seeing it in shot right now, will sort
of do its burns and flips pretty soon before it
comes into shot. But again, as it stands, this is
all nominal carrow, as they say, which means everything's going fine.
Speaker 4 (37:54):
Going fine for Crew eleven to then dock to relieve
Crew ten, instronauts who've been on to ISS for how long.
Speaker 6 (38:04):
Many many months, I think since the spring.
Speaker 3 (38:07):
The idea is that that there's a handover period, right
which is really which is really quite normal, and they
you know, in order to get there, have to dock,
and then there will be plans in place by NASA
and SpaceX to bring the existing crew back down there online.
(38:28):
And you know, like one of the good questions that
you raised earlier and that people always ask in our
coverage is like what.
Speaker 6 (38:34):
Are they going for? And part of.
Speaker 3 (38:37):
It is, like I'm repeating myself a little bit. ISS
gets decommissioned in about six years time. You know, it's
the end of the agreement. It's served its life, but
in the interim it needs maintenance. And so as part
of the cargo payload that's going up with Crew eleven,
there'll be materials to service the humans on board, but
also like the scientific apparatus and equipment that's up there.
Speaker 2 (38:59):
And let's just a little bit more. You mentioned Xena
cardman commander and.
Speaker 4 (39:04):
One of the few active female commanders in recent years.
Speaker 2 (39:08):
We've got Mike the pilot.
Speaker 4 (39:09):
You've also got Japan involved, Russia involved. This is geopolitics
at work here.
Speaker 8 (39:16):
Yep.
Speaker 3 (39:17):
So JACKSA, which is the Japanese Space Agency, has sent
Kimie A Yui. This is his second space flight. He
actually went up in space twenty fifteen. And then this
is the bit, right there's the reporting that we had
today that the interim NASA chief, which is Transport Secretary
Sean Duffy, had met with his Russian counterpart. Because the
(39:40):
context were SpaceX not around to do this, then America,
because of what's happened with Boeing and Starliner, would probably
rely on ros Cosmos, the Russian agency, to take American
astronauts to the International Space Station. Now, in this case,
there is a Russian astronaut aboard the capsule. His name
is Oleg Klattonov. It's his first trip to space as well.
(40:01):
And away from whatever is happening in geopolitics and in markets,
remember that the agreement between America and Russia CARRO is longstanding,
you know, the agreement literally to cooperate on not just ISS,
but move astronauts from Earth into into outer orbit in ISS.
Speaker 4 (40:20):
What's so interesting is the dominance of Eno Musk SpaceX.
Here we also think about Japan being in the mix,
and indeed Russia, as you say, alongside the United States.
It was but this week earlier, So much has happened
this week, but that Australia didn't manage to get a
suckered off the ground. Just where do we stand in
this so called space race.
Speaker 3 (40:41):
So SpaceX as a private company, but an American company,
dominates the vast majority of payload to orbit around eighty
five to ninety percent, including human and non human payload.
China is increasingly doing more. You will also remember that
like there are other nations around the world. Some of
(41:02):
the Gulf states like Ua have space ambitions. But it
goes back to what we were talking about earlier, right,
which is the economics of launch. As we see the
booster on the left hand side of the screen re
entering Earth's atmosphere, falling down using aerodynamics, but also the
paddles at the base to orient itself and slow itself down.
On the clock, by the way, I'm jumping around a bit,
(41:22):
but we're seven minutes in and the kind of key
moment is about forty seconds away where we should see
that booster land back to the landing zone. But to
answer your question, yes, SpaceX dominates, but there is pressure
coming from both government sector backed and private sector backed
rivals around the world, and we're.
Speaker 4 (41:42):
Just losing some connection there. We have it, will they
make a landing. It's like art ed there, we have it.
Speaker 6 (41:52):
Well, it's rocket science.
Speaker 4 (41:55):
Art and rocket science at work, but just remind us
because we've just been so in awe of not only
these landings and the reusable rockets, but the catch that
we've seen in the next iteration of spacecraft coming from
Elon Musk.
Speaker 3 (42:11):
Yes, so Falcon nine is SpaceX's high volume vehicle and
launch system. That's what we're looking at here with Dragon
caps you're on top. But they also have Falcon Heavy,
which is used for basically higher density satellite payload. It
hasn't taken humans. And then Starships the next phase. Starship
(42:32):
the biggest rocket that Humankind's ever built, and I think
Elon Musk has said on X that the next full
test of Starship is going to be in the next
month or so. The mechanism for the Starship booster in
that system is, as you say, not to land it
on a landing pad, as we just demonstrated with Falcon nine,
(42:52):
but to catch it. And you know, we can't do
this right now because we're carrying the launch live, but
go on the internet and look at how that works.
That bit they've kind of done. They've done it successfully.
It's the ongoing spacecraft part of Starship that they're still
working out Let's.
Speaker 4 (43:10):
Talk a little bit about economics here of NASA as well,
because we just see the energy behind wanting to put
money to work behind Elon Musk SpaceX, and the rounds
get larger and the valuation just sols.
Speaker 2 (43:22):
But NASA itself is trying to do more with less.
Speaker 3 (43:25):
It's well, I mean, and SpaceX has been at the
core of that story, and it's something that's started in
the Obama administration. You know, again, the economics of space
have changed. SpaceX has never disclosed the per seat cost,
but you can do the math based on the disclosures
that we do have, and it's several million dollars per person.
(43:48):
Compare and contrast with what else has been out there
from United Launch Alliance. And let me just catch this
key moment here.
Speaker 6 (43:56):
Look at that.
Speaker 19 (44:00):
Do you see Dragon coast into its orbit.
Speaker 8 (44:06):
And a wonderful view.
Speaker 18 (44:07):
There is Dragon Endeavor with crew eleven on board.
Speaker 6 (44:12):
Safe inspiration confirmed and safe.
Speaker 17 (44:14):
In Dragon Cheap engineer on dragging the ground. Containa, Mike
kem here Hole, welcome to orbit on behalf of the
entire Falcon team. We thank you for flying with Falcon
today and wish you a great mission. Dragon will take
you from here over to'll launch director for a few words.
Speaker 3 (44:34):
On behalf so Caro, what that was was dragging the
capsule and the left hand side of the screen you
see the crew inside there, separating from the second stage,
and now they're in orbit, right, And I'm just going
to give you a quick statistic which is very interesting.
We were scrubbed on Thursday, twenty three hours later.
Speaker 6 (44:52):
We did launch on.
Speaker 3 (44:53):
Friday, but because of where ISS was lined up in
with Planet Earth. For a layman's explanation, actually what's going
to happen is that all being well and equal, Crew
eleven and Dragon will arrive at the ISS at exactly
the same time on Saturday morning, about three am, eas
in time as they would have done if they had
(45:15):
launched yesterday. And that kind of speaks to speaks to
rocket science, doesn't it.
Speaker 4 (45:23):
This view of space and analysis of curvature of Earth
and speed at which we rotate in rbit, it sometimes
works beautifully in a lignes as this entire viewership has
been seeing throughout the show of what's happening currently live
with Falcon nine and how we start to see the
astronauts now relieve, Now just go back to the economics
(45:44):
a little bit, because what we're expecting now is they
are going to reach iss they're going to be relieving
Crew ten.
Speaker 2 (45:50):
But in the future, what we see fewer astronauts on.
Speaker 3 (45:53):
Board maybe I mean again, the movement here is for
the private sector to build spaces and so you know
the cadence of that happening. Who knows this crew will
be there for six months. NASA's thinking about maybe eight months,
you know, relieve Crew ten, they were there since March.
These come home, but this missions to success so far.
Speaker 4 (46:16):
We continue to see how the astronauts celebrate on board.
As you mentioned, Japan, the US and Russia represented. That
does it for this very global and very intergalactic edition
of Bloomberg Tech.
Speaker 3 (46:30):
Out of this World. Check out the podcast. You know
where to find it. We publish it everywhere. Lots of
you listen to it. It's been a great week. This
is Bloomberg Tech.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
The Joe Rogan Experience
The official podcast of comedian Joe Rogan.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Special Summer Offer: Exclusively on Apple Podcasts, try our Dateline Premium subscription completely free for one month! With Dateline Premium, you get every episode ad-free plus exclusive bonus content.