May 9, 2025 • 43 mins
Bloomberg’s Caroline Hyde and Ed Ludlow discuss the possible impact of trade talks between the US and China. Plus, Lyft CEO David Risher talks about the markets where the company is investing. And, DraftKings CEO, Jason Robins, explains the impact of a surprising March Madness.
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news from the heart of
where innovation, money and power collide in Silicon Valley and beyond.
This is Bloomberg Technology with Caroline Hyde and Ed.
Speaker 2 (00:19):
Ludlow, married from New York and San Francisco.
Speaker 3 (00:35):
This is Bloombag Technology coming up. President Trump, he floats
potentially in eighty percent tariff on China ahead of negotiations
due to begin Saturday. This has I urged Beijing to
do more to open up their markets to US goods.
Speaker 4 (00:48):
Plus, Apple's working on youtuip for future devices including smart glasses,
Powerful max and AI servers, and lift shares.
Speaker 3 (00:56):
Jumping this morning, it's biggest interday rise in November, so
after the Right and Company reported strong gross bookings in
their first quarter. But first we check in on these
markets and we're actually relatively calm.
Speaker 5 (01:07):
We headed towards the weekend when we actually see a.
Speaker 3 (01:09):
Little bit of a draw down on the last past
five training days. After two phenomenal weeks of gains on
the NASAQ one hundred, we just trimmed by two tenths
of a percent. Ed, it's all about tariff's It's all
about negotiations with China, whether there's any sort of ice breaking.
Speaker 4 (01:24):
Yeah, and that's why I'm looking at Tesla right. I
don't see a catalyst or a headline driver on the
terminal this morning, but Tesla is headed for its third
straight weekly gain. It's the biggest run of gains on
a weekly basis September. The logic in the last twenty
four hours has been if the tariff narrative with China improves,
names like Tesla will see a bit of a reprieve.
(01:44):
Tesla exports some vehicles from Shanghai. The mix of vehicles
when more of them come out of Shanghai is higher
margin for Tesla. Is that the logic that the market's applying.
What we're trying to do is extrapolate from what the
President said yesterday about what might happen in the context
of tariffs, and then he takes the truth Social and
says some.
Speaker 6 (02:02):
More he does.
Speaker 3 (02:03):
Let's bring up that truth Social post from President Trump
earlier this morning saying that having eighty percent tariffs on
China seems about right, and then leaving it up to
Treasury Secretary Scott Besson. Let's get you the inside track
with blumbg's Michael Shepherd. Mike look, eighty percent, is that
a positive or negative for the market.
Speaker 7 (02:22):
Well, you know, if the market, we're looking for a
big concession on this. They got in absolute terms of
significant cut from the current one hundred and forty five
percent tariff level. But keep in mind, Carro, that eighty
percent tariffs on goods coming in from China is still
pretty eye watering. It's at a level that would discourage
most trade. And we've seen companies, including Apple for instance,
(02:45):
trying to shift their supply chains and supply lines when
it comes to China to reduce their exposure to China
when it comes to goods exported to the US. And
it's interesting that the President is also framing this as
a challenge to China to open its markets, even as
he is maintaining what would be a historically high barrier there.
Speaker 4 (03:07):
Mike, the President, indeed, the British Ambassador to the US,
Peter Manerlson, kind of framed this as a great deal,
the ten level tariff UK to US. But what everyone
kept asking in the Q and A is is this
the template for your other negotiations? And I think the
President basically said ten percent's a great deal. It won't
(03:27):
be like that for other countries.
Speaker 7 (03:30):
Well, that's right, ed, and that really is the question
on the minds of trading partners and companies around the world.
They want to know, how do we negotiate with this
administration that has come in really elbows out on trade
from the start. And what we heard from Howard Lutnik
last night was that, look, this may not be a
template per se, but it is a roadmac It gives
(03:51):
a sort of frame two other countries to trading partners
about what sorts of concessions.
Speaker 8 (03:57):
The Trump administration might be looking for.
Speaker 7 (04:00):
When it comes to the UK, they came in with
some offers that were quite appealing to Donald Trump.
Speaker 8 (04:05):
Won the UK agreed to buy.
Speaker 7 (04:07):
Thirteen billion dollars worth of Boeing aircraft, very much music
to his ears as he tries to stoke the manufacturing
base here in the US, and also some agricultural concessions too,
with promises to increase purchases of American beef. So between
beef and airplanes, the UK found a way to get
that reciprocal tariff lowered all the way to ten percent.
(04:29):
That may not be the case with other countries, and
certainly negotiations with South Korea and Japan, which have a
heavy tech exposure and interest, will face a much tougher
and more complicated road.
Speaker 8 (04:40):
How link indicated yesterday ed boom both.
Speaker 9 (04:43):
Michael Shepherd in Washington, d C. Thank you.
Speaker 4 (04:46):
In other news, China's top chip maker, Semiconductor Manufacturing International,
plunged Friday after it worn sales could fall as much
as six percent this quarter because.
Speaker 9 (04:56):
Of production disruptions.
Speaker 4 (04:58):
The company's co CEO unspecified issues with production lines and
warned of a likely shipment correction in the smartphone market
over the summer.
Speaker 5 (05:07):
Carrot more on smartphones.
Speaker 3 (05:08):
Let's turn to Apple, but actually the tech giant is
said to be designing new chips to be used in
future devices, smart glasses, more powerful max AI servers.
Speaker 5 (05:16):
Let's get to Mark German.
Speaker 3 (05:17):
Who's been breaking all of this news, and finally, well,
those meta ray bands are going to have some competition,
but it'll take a couple of years.
Speaker 6 (05:25):
That's the big news here.
Speaker 10 (05:26):
The meta smart glasses will have some competition from Apple.
Apple has been working on glasses projects for some time,
including classes without augmented reality like the metas, and glasses
with augmented reality. Those are coming further down the road.
But you need a product to hold you over till then.
They've seen the metas are popular. They've seen that artificial
intelligence is going to be a big part of hardware.
(05:48):
So they're going down this road. And as they've done
with other new product categories, they're developing a custom chip
for these glasses. And this chip is based on the
Apple Watch processor.
Speaker 6 (05:57):
Right.
Speaker 10 (05:58):
It has special components in there too to increase power efficiency,
decrease power draw, and control multiple cameras that would be
on the exterior of these glasses, and they would work
like metas where you can look at items and ask
it for context using Siri mark.
Speaker 4 (06:14):
Generally speaking, this is consistent with apple strategy on custom silicon. Right,
many of the processes across the range of devices are
Apple's own and I believe made by TSMC, fabricated by TSMC.
Just explain Apple's footprint in that sense.
Speaker 10 (06:30):
Yeah, the Apple for footprint is that they have their
own custom processors and basically every device they sell. They
moved away from Intel in twenty twenty. For the Mac,
the Mac now has these high end M series processors,
the Vision Pro and the iPad of the M series processors.
At this point, the iPhone and the lower and iPads
have the A series processors. They make their own chips
(06:50):
for AirPods for Apple watches, and so of course they're
going to do it for the glasses as well as
a significant product category within that vision brand in our likelihood,
and they used here and C like you said, for
that final manufacturing. But much of the design is done
in house from Apple in their labs across Europe, across
the United States, and they do have a license with
(07:13):
ARM and they use fundamental underlying technologies from ARM.
Speaker 4 (07:17):
Yeah, many people talk to me about Apple in the
context of it being a fabulous chip designer in its
own right, which is a fascinating move. Bloomberg, Mark German,
thank you very much. Now coming up, we're going to
speak with the Lift CEO, David risher Is. The company
posts better than expected gross bookings for the first quarter.
Speaker 9 (07:34):
This is Bloomberg Technology.
Speaker 5 (07:43):
Time now for talking tech.
Speaker 3 (07:44):
And first up, as you see shares a crowd strike
lower today, US prosecutors regulators, they are proving senior executors
over what may have been known by them about it's
thirty two million dollar deal with Carasoft into the IRS.
Now that's a quarter to sources. Investigators are looking into
other transactions made by CrowdStrike and said to have.
Speaker 5 (08:04):
Questioned former employees.
Speaker 3 (08:06):
Plus TSMC rising today is the company posted a revenue
jump of forty eight percent in April. This has companies
increased purchases of essential components ahead of global tariffs. TSMC
says that they see continued resilient demand from ai but
recent surgeons in Taiwan's dollar that compression of the company's
margins going forward, and Panasonic is cutting ten thousand jobs
and an effort to boost profitability, shifting focus into growth
(08:28):
areas now. The four percent workforce reduction can see five
thousand employees in Japan and five thousand overseas.
Speaker 5 (08:33):
Personnel if they let go in the fiscal year.
Speaker 3 (08:36):
Panasonic expects about eight hundred and ninety five million dollars
in restructuring charges this year.
Speaker 4 (08:41):
ED Let's Go Back to Technology earning shares of LIFT
up around twenty percent so far today, on track for
their biggest jumps since November, company posting a better than
expected gross bookings of four point one six billion dollars,
and Little Sweetener announced an expanded share by Back program.
Speaker 9 (08:59):
LIFT CEO Dave joins us for more. Good morning, David.
Speaker 4 (09:02):
There's something really interesting in your kind of forward looking
strategy commentary on the cool Uber talks about something the same.
There are parts of this country, America where ride share
is less pervasive, people don't use as much, probably they
drive their own car.
Speaker 9 (09:17):
You want to go after that market? Why and how so?
Speaker 11 (09:22):
The answer is, we've gotten really good at obsessing over
our customers and we want to take it bigger and
go bigger. I mean, look, this is our sixteenth consecutive.
Speaker 12 (09:31):
Quarter of growth. You know, we're a profitable.
Speaker 11 (09:34):
Company, We're you know, generating nine hundred million dollars of cash,
and yet yet the rideshare market are still tiny. One
hundred and sixty billion rides in the United States every
year and we only do a couple three billion between
the two of us. So there's so much opportunity. It
really is better to be in the back of the
car having someone else drive you, and we want to
do it in places like Indianapolis and others where you know,
the opportunities even bigger cash.
Speaker 4 (09:56):
When last year on which was just a few weeks ago,
we were talk talking about M and A in Europe,
and with respect, it was a modest deal. The buy
back is clearly well received by your investors. Yeah, but
that would indicate that you have some ability to do
m and a going forward you know, do you see
that in your capital plans? And if you did buy something,
(10:18):
what would it be.
Speaker 11 (10:19):
So, so, first, thanks for acknowledging it's true. I mean,
this is a business that is now generating nearly a
billion of dollars of cash in the trailing twelve months.
Speaker 12 (10:27):
So that's a wonderful place to be.
Speaker 11 (10:29):
Again, huge thanks to the incredible team that has been
working so dang hard to make this business not only
great for customers, but great for shareholders as well.
Speaker 12 (10:38):
So now the question is, right, what are other opportunities?
Speaker 11 (10:40):
I would say our near term focus is making the
cash that we've got, you know, putting it to work.
As you say, we just acquired free Now, which will
allow us to expand internationally.
Speaker 12 (10:49):
You know, nothing more.
Speaker 11 (10:49):
Obviously to announce right now, aside from the buyback, of course,
but it's great to be in a strong position. We've
got a strong balance sheet and a strong income statement,
so it feels that's a good place to be and.
Speaker 3 (10:58):
It's a strong position that you manage to defend off
engine capital, David, in terms of they were a pushy
investor wanting changes potentially a board level, but they've withdrawn
that because of what you've given to the investor base
in terms of buybacks, David.
Speaker 5 (11:12):
Is that a cyber relief?
Speaker 12 (11:15):
I mean, you know, we talk to investors all the time.
Speaker 11 (11:19):
I would say maybe not so much the cyber relief
as much as just it absolutely allows us to continue
to focus on our riders and our drivers.
Speaker 12 (11:26):
That's sort of the big thing.
Speaker 11 (11:27):
But it's great that investors are responding so well to
what it is that we're doing. Again, share buy back
is great. You know, profitable growth, you know, quarter after quarter,
that's great.
Speaker 12 (11:36):
And this is what I've always said, it's.
Speaker 11 (11:38):
Customer obsession that drives profitable growth, and we're sort of
seeing that play out now.
Speaker 3 (11:42):
And that customer obsession drives innovation, drives autonomous vehicles. I
know you're looking at Atlanta, You've got a partnership there.
How much are you're going to see driverless vehicles automatically
you're going to have safety drivers in the car.
Speaker 5 (11:54):
What is that going to look like as a pilot.
Speaker 11 (11:56):
Yeah, so this is a pilot that we're doing with
main Mobility set back. Autonomous vehicles are going to come.
Right they're here in San Francisco, you see them everywhere.
They're obviously in La and Austin and other places as well.
Speaker 12 (12:07):
They'll come.
Speaker 11 (12:08):
It'll be many, many years before they're a big deal,
but as they come, it's such a great opportunity for
ride share and for a lyft because it allows us
to you know, provide better service, you know, using different technologies.
Speaker 12 (12:18):
As you say, we'll be.
Speaker 11 (12:19):
Starting in Lantam in a couple of months, middle of
the summer. We will start with a sort of a
confidence driver, someone else in the car to kind of
help make sure that people feel comfortable.
Speaker 12 (12:28):
With what's going on there.
Speaker 11 (12:29):
It'll be a fairly small scale pilot, but this is
something it'll grow into Texas next year with a partnership
with mobil I and others, and then we'll.
Speaker 12 (12:36):
Just keep building and building and building.
Speaker 11 (12:37):
To the point where drivers are driving millions of people
and autonomous vehicles are driving millions of people as well.
Speaker 4 (12:42):
David, you're a technology CEO, and as such you must
field questions on economics and the state of trade and travel.
Speaker 9 (12:50):
It's our favorite thing to do.
Speaker 4 (12:53):
Squ Uber reflected on the idea of cross border travel
Canada into the US, the inbound travel into the US
being soft business travel. People arrive at airports, are they
or are they not doing ride share? What are you
seeing through the consumer about the state of this economy.
Speaker 12 (13:08):
I don't say we're seeing strength. And I know a
lot of people are trying to look granula where why?
Speaker 11 (13:13):
So I'll give you a couple of examples. Let's actually
go back literally to earlier this week Sinkle demyle, right,
that's not a holiday, that's necessarily a huge thing. But
at the same time we saw one of our biggest
sink of demios ever, it's a very very strong day.
Speaker 12 (13:24):
Let's go back to the end of March.
Speaker 11 (13:25):
Last week in March was actually our strongest week ever
in terms of ride value. I think what we're seeing
here is ride share has become a very sort of
base staple part of so many people's lives that I
don't really expect a sort of consumer sentiment fluctuates around
to see that much difference. I'll talk about airports for
just a second, because you asked airports basically quarter to
quarter are flat. It is true, consumer, excuse me, the
(13:49):
commute is going up faster, so if you look at
it that way, consumer's growing a little bit faster.
Speaker 12 (13:53):
Excuse me, commute, I keep saying that.
Speaker 11 (13:55):
But you know, again, even when you look at airports, gosh,
it's only one in five people use rightdchhair to get
to reports in the first place. That means eighty percent
is still out there for sort of the you know,
the picking. So I think our big focus is trying
to expand the market. I don't think that the macro
stuff is a big deal right now for us.
Speaker 5 (14:10):
You're growing in Canada, David.
Speaker 3 (14:12):
And it's interesting I've asked this time and time again
a start of IBM asked, a vouba ask of a view.
Is there any impact from being an American brand going
into a country such as Canada right now?
Speaker 5 (14:22):
Because we are hearing of pushback thirty seconds you know, it's.
Speaker 12 (14:25):
So interesting, No, is the real answer.
Speaker 11 (14:28):
In fact, we've just got authorization to open in Quebec,
in the province of Quebec, which which we might have
wondered whether it was going to happen given everything going on.
So no, we've actually seen acceptance. Actually, Toronto's a big
city for.
Speaker 3 (14:39):
Us, going super well, David Risher, so great to catch
up with you Thinbous some the numbers.
Speaker 5 (14:43):
We appreciate it.
Speaker 11 (14:44):
Lift to see it is a pleasure, Thanks you guys.
Speaker 4 (14:55):
Pinterest ches up after the company reported second quarter revenue
guidance that beat expectations and told analysts the platform was
leveraging AI to attract advertisers. CEO Bill Ready spoke to Bloomberg.
Speaker 6 (15:07):
Earlier, pintresses where gen Z goes to shop.
Speaker 13 (15:10):
Gen Z is now our largest fastest growing demographic, over
forty percent of our users. And you know they're coming
here to shop. We're giving them a great shopping destination.
But you know that has allowed us to deliver great
performance for our advertisers. We've delivered a performance advertising platform
where advertisers can get clicks and conversions and great performance.
We're giving them AI enabled tools, so it's easier than
(15:32):
ever for them to go create campaigns on Pinterest and
see really great returns on that. So that's the other
side of the business is that we've made Pinterest a
shopping destination. Eighty five percent of our users come to
us directly, and then we connect them with advertisers to
make it really easy for advertisers to connect with those users.
In this moment where they're in market looking for something
to buy but haven't decided what to buy. That's a
(15:53):
great moment for those two to meet, and we see
that continue to accelerate. We're all time highs on users
and all time highs on depth of engagement per user,
really driven by AI and the personalization there and then
how we're connecting shoppers and sellers.
Speaker 3 (16:09):
So, is that keeping the likes of Timu and Sin
who a lot of those gen zs are going to
buy on your platform?
Speaker 5 (16:16):
Is that sticking around because many had worried.
Speaker 3 (16:18):
Because of the towers, because of the difficulty accessing the
US and consumer in terms of price point, what we'd
see retrenchment in terms of ads from those companies.
Speaker 13 (16:26):
Yeah, Well, we're a global platform. You know, we're overre
you know, five hundred and seventy million users. Eighty percent
of those are outside the US, and so we noted
as others that for Asian cross border sellers, you know,
that has slowed down coming into the US, as others
have noted as well. But we're seeing those sellers sell
more globally and we're helping them to connect to other
markets around the world. Here in the US consumers are resilient.
(16:49):
You know, there's lots of public spending information that says
that consumers are still shopping. We went through a major
supply chain destruction just a few years ago during the pandemic,
and you know, we all saw, you know, things are
out of stock and consumers found other ways to buy,
other things to buy.
Speaker 6 (17:03):
And we see that happening on our platform.
Speaker 13 (17:05):
That while you have things like budget conscious searches like
you know, budget friendly recipes or you know budget you know,
party decorations, budget party favors, and those kinds of things
up two hundred percent plus here on here. People find
substitute products, they find other ways to go sort of
bring delight into their life, and we're a great place
(17:25):
to help them do that, in a great place for
advertisers to see these shifting consumer trends.
Speaker 3 (17:30):
Bill Ready speaking to us earlier, and let's just stick
with earnings, with the consumer sentiment as well. Let's go
to buy now, pay later company. A firm look shares
our trading lower, but they actually increase guidance.
Speaker 5 (17:40):
A firm CEO, Max Livtin is.
Speaker 3 (17:42):
Here with US analysts calling this a knee jerk reaction
and ultimately maybe some lofty expectations. But are you, like Bill,
are you still seeing the consumer spending right now?
Speaker 14 (17:51):
We are, We really are, He's He's exactly at A
couldn't agree more. US consumer has been resilient. They found
new things to buy, new things to be excited about.
We're seeing really strong growth, which is posted three six
percent GMB growth and that's a third quarter in a
row acceleration. So the rumors of US consumer decline are
somewhat exaggerated, it seems.
Speaker 5 (18:10):
And maybe it's lofty expectations.
Speaker 3 (18:12):
I'm sure you're going to tell me you don't check
in on the shares very much, but when you do
see sentiment like this on the back of your numbers, what.
Speaker 5 (18:18):
Do you think investors are shying away from? Is it competition?
Speaker 12 (18:23):
You know?
Speaker 14 (18:23):
Hard for me to tell. I try not to check
too often. I primarily care about it from the point
of view of the team feeling that their hard work
is actually understood by the market.
Speaker 6 (18:32):
And I think it.
Speaker 14 (18:34):
Took our consumers and our merchant partners about a decade
to fully grasp just how different and how a creative
we are to their sales, and just how powerful this
whole new idea is and then it just happened. And
so you know they say slowly at first, then all
at once. That's my that's my hope for the market.
Speaker 9 (18:55):
Max. Hello, let's talk about Costco.
Speaker 4 (18:58):
You have this arrangement with Costco to allow a Costco
costumer to pay over time. I am a Costco member
and have a City credit card, and the benefit of
the card is that it gives me five percent cash
back on gas or four percent on groceries. Right, so
I'm incentivized there. You and I've talked about this a lot, right,
the sort of academic approach to whether you should put
(19:22):
something or credit or not. Just explain how you think
you're going to be competitive against Costco members like I
with this offer.
Speaker 6 (19:30):
You know, I'm not sure I'm going to be competitive.
Speaker 14 (19:32):
I think Costco card, like everything offered a Costco, is
a great value. And you know it's certainly not a
thing we are trying to talk you out of if
you are truly committed to it. We speak to a
younger demo than a typical credit card consumer who is
very miles towards et cetera.
Speaker 6 (19:49):
Conscious.
Speaker 14 (19:50):
They choose to borrow with a firm because they have
a point of view on They don't like credit card debt.
They want to know exactly the true cost of the
thing they're buying. They want to know when they're out
of debt and fully paid out. And they're less interested
in rewards, much more interested in just transparency of pricing.
And I think Costco understands that as they try to
(20:13):
attract younger buyers, and that's why they partner with us.
Speaker 4 (20:17):
I am no longer in the younger demographic.
Speaker 6 (20:19):
And they're still you're still in a very young demographic.
Speaker 9 (20:24):
Max.
Speaker 4 (20:24):
You know the performance, you know, the top end of
the guide was above consensus. Just where were the specific
elements of strength for you? Is there anything you're doing
on the technology side that's giving you a real advantage.
Speaker 14 (20:37):
No, it's very fashionable to flash your AI credentials, but
we have built a really, really meaningful business entirely on
the strength of AI and machine learning all these years
underwriting consumers with alternative data, completely different approach to modeling,
while of course remaining fully compliant with all the applicable laws.
(21:00):
So we are a technology first company with real depth
of approvals, while maintaining our core values to just no
laid fees, no compounding, interest, no deferred interest, all the
things that you sort of people love to complain about
when they talk about credit cards. And that's given us
real strength with the younger consumer gen Z. Just like
Bill said, you know, we have a huge penetration into
(21:21):
millennial demographic gen Zy demographic.
Speaker 6 (21:23):
That's what retailers come to us for.
Speaker 14 (21:25):
They want to attract this younger buyer who really does
differentiate between Hey, I don't want to revolve.
Speaker 6 (21:30):
I don't want to.
Speaker 14 (21:33):
Think of this as a buy now, pay forever, which
is you know what much much credit cards are?
Speaker 6 (21:38):
Yeah?
Speaker 3 (21:39):
Is that younger demographic? Is any of your demographic starting
to use you more? Because the economic uncertainty is that
what you actually anticipate going forward?
Speaker 6 (21:47):
It doesn't appear to be that way.
Speaker 14 (21:49):
I don't think we are gaining share because of economic uncertainty.
Speaker 6 (21:55):
You know, TVD.
Speaker 14 (21:55):
We're living in volatile moments, so who knows what's going
to happen next. But right now our consumer comes to
us more than anything for the clarity and the transparency.
Speaker 6 (22:04):
But most importantly, I think we are.
Speaker 14 (22:08):
Seeing increased growth right now because of all a zero
percent offers that we're seeing that the work we're putting
into the market right.
Speaker 9 (22:13):
Now a firm CEO, Max left Chin. Great to have
you back with us. Thank you very much.
Speaker 5 (22:25):
Welcome back to Blue Meg Technology. I'm Caroline Hide in
New York and.
Speaker 4 (22:28):
I met Ludlow in San Francisco. Let's look at the
markets on the week and technology in particular, and as
that one hundred as it stands very modestly in decline
over the course of five days. Tariffs have been what's
driving things. I just want to look at alphabet paran
of Google right the doj antitrust remedy trial is one
factor search considerations. Rivals coming out like Apple and saying
(22:53):
this is what we plan to do in the search
market is really impacted their stock on Wednesday, one hundred
and forty seven billion dollars in market shed alone on aggregate,
heading to about one hundred and twenty billion dollars a
market cap decline. Later in the program, we'll get into it,
and in terms of specific movers, we're going to go
to the earnings context very shortly. But think about the
strength that we're seeing in streaming Cara in particular, and
(23:16):
then not just here in America, but we've got some
interesting us from around the world.
Speaker 5 (23:20):
We did, and it's your world of gaming end.
Speaker 3 (23:22):
Because let's turn our attention to Nintendo projecting actually weaker
than expected initial sales for the Switch too, despite overwhelming
pre orders and market expectations that it would be the
fastest selling console in history.
Speaker 5 (23:34):
Jason Schards joining us on what is this? You know?
Off by three percent?
Speaker 3 (23:38):
They've got trade and tariff's to be thinking about. But Jason,
why the slower than anticipated sales?
Speaker 9 (23:44):
Tariffs are the big one.
Speaker 8 (23:45):
Nobody knows what's going to happen.
Speaker 15 (23:47):
Nintendo included, they make the majority of switch tos that
are sold in the US. They make in Vietnam, which
is one of those tariffs that is still unpaused for
ninety days according to President Trump. So I guess we'll
see what happens there. The other factor is supply shortage.
That's always a question surrounding the release of these new consoles.
(24:08):
How many can they actually manufacture and get to US shores,
whether or without tariffs.
Speaker 4 (24:14):
There's definitely a technology conversation had with the Switch to
right inside of it is a high performance and video
processor that takes the Switch to from being a kind
of lower fidelity, lower performance console to being more on
par with PlayStation and Xbox. You know what is going
to be different this time around for the Switch, Like culturally,
(24:34):
how do you think people will approach what it can
do and the types of games you can play on it.
Speaker 15 (24:40):
It's interesting this issue comes out of a really fascinating
time for the video game industry in that graphical Fideli
has not really gotten that much more impressive over the
last four or five years. So Nintendo is pretty well
positioned even with technology that is a few years old
at this point, even technology that is five six years old,
it is in a good position to still sell games
(25:02):
and compete with the other two consoles. I mean, the
other big factor is that people buy Nintendo consoles for
Nintendo games. They want Mario, they want Zelda. Mario Kart World,
which is launching alongside the Switch too, is expected to
sell a kajillion copies of the last one sold over
seventy million units alone. So we're talking about a customer
base that is built in and doesn't care quite as
(25:25):
much about graphics, about the highest end GTA level games
as much as they do about these franchises that are
really always consistently good bluebags.
Speaker 4 (25:35):
Jason Schreyer, who leads our video games industry coverage.
Speaker 9 (25:38):
Great to have you on the show. Thank you very much.
Speaker 4 (25:40):
Let's stick with earning shares of Trade Desk for flirting
with the best day in more than two years, getting
a boost from better than expected q ON results and
upbeat forecasts. The best performer on the Nasdaq one hundred
in terms of percentage gain. Laura Martin, Media, Senior Entertainment Analyst,
joint US. Now, now let me do this. What is
(26:02):
trade desk?
Speaker 9 (26:04):
What does it do and does it do it well?
Speaker 16 (26:08):
What an excellent question.
Speaker 17 (26:10):
Okay, So Trade Desk is a demand side platform, a DSP,
and so when you load a web page of a
news article you're watching, Trade Desk delivers an AD in
real time in milliseconds, and that ad has actually gone
to auction in those milliseconds because they know who you are,
and they know how much money you make, and they
know that you're in the financial industry. So your AD
(26:32):
units that are getting served to you in milliseconds are
very valuable, much more valuable than like, you know, my kids,
who earns no money and lives at home. So Trade
Desk delivers those in milliseconds, having bought them at auction
and they represent the largest two hundred advertisers. I think
technically they have, you know, four thousand ad buyers, but
they only represent ad buyers typically top of funnel without
(26:56):
a performance metric associated with it.
Speaker 3 (26:59):
They're doing strategy, got grades Kokai, they say, is giving
them more power than ever. It's interesting, Lad, They're obviously
delivering on a technology front, but there's got to be
a resilient desire to be advertising this moment. We've seen
that from Meta, We've just seen it from Pinterest as well.
From your perspective, is the advertisers, the marketerstre willing to
spend in this environment.
Speaker 17 (27:18):
So every company has now reported earnings on every call
they've gotten. Asked since April second, terraffs, have you seen downdraft?
And with a couple exceptions, everybody else has said no.
Trade desk said no. To date, it's been five weeks
since April second, they have not seen downdraft other than
in areas like autos or home appliances is down like
(27:40):
forty percent with one company I talked to since April second,
and you guys probably saw like the ports are empty.
They've turned around these container ship carriers and they're going
back home rather than try to empty in the ports
and pay the tariffs. So I think this might be
a gathering storm. But so far Trade Desk has not
seen impact.
Speaker 9 (28:01):
Of Terras Laura.
Speaker 4 (28:03):
This week in Europe we had the semi final of
the Champions League, which makes me think about Paramount. You know,
just as a case study, they showed some streaming strength,
but on aggregate, what have you learned about the streaming
landscape this far and particularly consumer attitudes to all of
the platforms available to them?
Speaker 17 (28:22):
Right, so we can talk about dizz Disney, Warner Brothers,
Discovery and Paramount like all together big streamers, which is
the source of question. But from a stock point of view, first,
I just want to make a distinction because Paramount revenue
felt ten percent, Warner Brothers fell six percent, and both
of them were projecting negative four percent revenue growth this
(28:45):
year and flat next year, which begs the question why
do you need to be in these now because they're
still not growing. Disney, by contrast, revenue up seven percent.
We're showing revenue up four percent this year and four
percent next year. A lot of that is driven by streaming,
so that's where I get to the answer to your question.
A lot of that is driven by you know, not
(29:05):
only does Disney have better have more diversity of assets,
of course, but it also has better films, which helps.
Although films less than fifteen percent of the business at
Walt Disney these days, but streaming is what's really driving
that outperformance compared to Paramount, compared to Warner Brothers, Paramount
has the overhang of can it's deal get done? That's
a big that's a big like cloud on Paramount. But
(29:27):
the fundamentals of streaming are a bright spot. But if
you can't make good films or you can't sell good TV,
it's you have a big linear TV business, which both
Paramount does and Warner Brothers Discovery does.
Speaker 16 (29:41):
Like it's a problem, right because it's a shrinking to guests.
Speaker 3 (29:44):
I mean, also, what's the problem is if you're suddenly
going to have massive costs on your movies going well anywhere,
being able to make content abroad, being able to bring
foreign made produced content into the United States that has
been proposed by the administration seems to be hurting the
very industry that they're trying to protect. Right now, what
(30:04):
is the impact on paramount. What is the impact on
Disney if this does go into full.
Speaker 17 (30:08):
Force, right, No, it's an excellent point because he is
trying to help the industry. But as you know, films
take three years to make, so the tariffs immediately would
hurt a film that started three years ago before this
policy existed, before the companies could react. So every film
trying to come back to America that's been made offshore,
whether it's tax advantage or not.
Speaker 16 (30:28):
You watch Mission Impossible.
Speaker 17 (30:29):
They are going for the tax breaks, right, They're going
for these really exotic locations, and they don't like money.
Speaker 16 (30:35):
Isn't the reason they're off shore. They're off sure for
the art of it, like for where, like.
Speaker 17 (30:39):
The plot line. So now those films are coming back
over the next two years, and they're all going to
be taxed at one hundred percent Like that is not
helpful for the industry.
Speaker 4 (30:49):
I mentioned it at the top of the block about
alphabet and Google. Right, it's been an astonishing week frankly
about revelation in the antitrust context.
Speaker 9 (31:00):
You focus on YouTube historically.
Speaker 4 (31:02):
When we talk about the streamers, but just in that
antitrust context, have you sort of recalculated remodeled. The future
you see for Alphabet and its various properties largely search.
Speaker 16 (31:14):
Yeah, like our policies.
Speaker 17 (31:15):
You know, we do evaluation of YouTube as a standalone
entity every single quarter this company.
Speaker 16 (31:21):
My opinion is Google is worth more.
Speaker 17 (31:23):
On Alphabet is worth more in pieces than it is
together because it's my opinion that people within the Alphabet
holding company framework get subsidized by search, so they are
not required to make money as if they're a general
manager of their P and L. I think the best
thing that could happen for ad Tech is for them
to be forced at the September hearing to spin off
(31:44):
the ad server and the SSP their supply side, which
is the marriage piece to prade desperate cert. If they
got that would be really great for ATIK. It would
also be good for not the Google perimeter that stayed behind,
but the Google asset. The managers that happen to have
to to compete for the first time and not get
the benefit of being tied to search data and YouTube data,
(32:06):
which is best in class like consumer data. So and
I think the more Alphabet gets smaller, the more they
can focus on what matters, which is solving the search problem.
Now that AI is here and making sure YouTube remains
the number one streamer on Earth.
Speaker 3 (32:21):
Laura Martin, It's always great to catch up with you.
Happy weekend speech.
Speaker 5 (32:24):
You see. We hope of Needham appreciate it.
Speaker 3 (32:26):
Meanwhile, coming up, more earnings, more CEOs, Draftking CEO Jason
Robbins joins us discuss the company and will slightly cut
to its guide as a Bluebote technology.
Speaker 4 (32:47):
Draftking shares rising, with investors shrugging off the company's reduced
full year guidance after a customer friendly March Madness weight
on sales. Draftking CEO Jason Robbins delighted, say joins us.
There has been some, let's say, back of the Napkin
math and people look at the revenue forecast being lowered
(33:09):
by about two hundred million dollars. Right, Bear with me, Jason,
Is that exactly how much Draft Kings lost on March Madness,
the two.
Speaker 9 (33:17):
Hundred million dollar figure.
Speaker 18 (33:20):
No, we actually put out the numbers.
Speaker 19 (33:22):
We have a bridge in our earnings materials.
Speaker 18 (33:24):
It was a little bit less, but overall it's not
too far off.
Speaker 3 (33:29):
Okay, talk to us a little bit about what's too
far off as well? What else is driving perhaps an
expected downgrade in full year guidance. Analysts seem to be
taking as well on the chin as our investors, but
the regulatory environment as well.
Speaker 5 (33:42):
How much you haven't in you once for that?
Speaker 18 (33:45):
Well, what we we put this out there. We had
about one hundred and seventy million from sport outcomes and
then thirty million came from jack Pocket being caused to
not be operating anymore in Texas. But then the overall
fundamentals of the business were actually very strong. We saw
increased to structural hold rate, our promotional efficiency increase, so
(34:07):
some of those things offset as well. So really the
fundamentals of the business are about as healthy as can be.
And I think the real question is will all these
sport outcomes turn around in two quarters in a row now?
But obviously that happens, and that's part of the greatness
of the product is that customers can win and they
can go on winning streaks like this, and it makes
it a lot of fun obviously, and you know, we'll
(34:28):
see it was the first time and I think second
time ever there were all four number one seeds in
the final four. Only the first time ever that that
happened with also all twos in one three seed in
the Elite eight, So you never know, maybe there will
be another year like that, but probably not.
Speaker 19 (34:43):
It was more likely an anomaly.
Speaker 18 (34:44):
And you know NBA playoffs already have had a bunch
of upsets, so it tends to kind of swing.
Speaker 19 (34:49):
Around the other way over time.
Speaker 5 (34:50):
Ah, too much consistency.
Speaker 3 (34:52):
But what also is consistent, Jason, is what a massive
jump in your monthly active uses when you talk about
the Jackpot in particular, and I'm interested in how jackpocket
is transferring to other sports, casino games and the likes
or are people sticking to that lottery application.
Speaker 18 (35:10):
Well, the jackpocket is still very early in its growth,
it's still quite nascent, so we believe there's a ton
of upside for that business and we're excited about it.
We haven't fully integrated it into the DraftKings app yet,
we haven't put it on our platform yet, which should
dramatically increase both the conversion metrics and also the cross
sellability and marketing ability. And the cross sells already well
(35:31):
above our expectations, so we think there's even more upside there,
so we're pretty excited about it. We think there's a
lot of growth potential, but it's still small, so the
overall impact on the business isn't great yet, but hopefully
that changes as Jackpocket continues to grow.
Speaker 4 (35:46):
Jason, in your industry, there are big almost legacy names
Las Vegas Sands, for example, that are pulling out of
bids for land based casinos, and I wonder how much
you can assess their nervousness that online gambling just cannibalizes
demand for land base and how that impacts you.
Speaker 18 (36:08):
Well, it's certainly a perception that we have to fight
because it's out there. I do think that the facts
are very mixed on that. While there's certainly some examples
you can point to where there's been you know, diminishing
markets where they've had online gaming, it's also you know
often where there have been declines going into that, and
then you see the complete opposite story in states like
New Jersey where they grew and really reversed a declining
(36:30):
trend for years after legalizing online gaming. And it's also
a different property to property. I do understand though, why
if you're a company that has no ie gaming play
right now, doesn't have an app, doesn't have a way
to make money off of it, that this wouldn't be
seen as any upside for you, and so naturally, you know,
if there's no upside there, there can only be downside.
Speaker 19 (36:50):
And I do understand that.
Speaker 18 (36:52):
But I think the amount of cannibalization and the downside
has been greatly exaggerated and we need to do a
good job, or a better job, I should say, educate
on that, because the numbers don't necessarily support that story.
Speaker 3 (37:04):
Jason Robbins, Draftking CEO, thanks so much for joining us today.
Speaker 5 (37:07):
I appreciate it. Thank you foring wow, we're going.
Speaker 3 (37:10):
To look with Sticking with sports, we also just caught
up with David Beckham's former teammate Gary Neville. After the
two partner up, they recommitted to buying Saltford City Football
Club alongside global advisor and investment platform can Seller Group
and a whole host of other business executives. Now, Neville
spoke about the importance of content as well as pitch
performance to take it all the way to the Championship
League in the next five years.
Speaker 5 (37:30):
Take a listen you.
Speaker 20 (37:32):
Refer to Obviously Wrexham THEYD done a great job there
over the last few years. But we've been in Salford
now for ten years. We had a documentary nine years ago,
I think the very first fly on the Wall documentary
of a football club that was on the BBC and
used to get millions of people watching it. We definitely
want to revisit that type of model and grow commercial revenues,
but doing it in such a way whereby football is
always deemed as a priority, and you know, there is
(37:55):
great excitement on the ground here. It's a new injection
of life into Salford City.
Speaker 5 (38:02):
On Bloomberg dot com ed, the.
Speaker 4 (38:12):
Federal Trade Commission has spent the past month presenting evidence
to show the social media giant Meta should be broken up,
and testimony from more big names.
Speaker 9 (38:22):
Is expected in the coming weeks.
Speaker 4 (38:23):
Bloombo's Riley Griffin is out on the East Coast in
DC tracking what's going on.
Speaker 9 (38:28):
What is the latest?
Speaker 4 (38:29):
You know, there are so many headlines that come out
over the course of the process based on people's testimony.
It's hard to say where, like net we stand right now.
Speaker 21 (38:39):
Well, we are at the midpoint of the trial. We
expect potentially next week or the week thereafter, Meta to
begin in earnest its defense. But what we saw just
yesterday was Instagram chief Adam musserri defending Meta against the FTC,
which is making the claim that Meta has dominated the
friends and family market that means social media that is
(39:02):
focused on connecting with your friends. It's a tough case
ahead because, as Adam Asseri said, TikTok has emerged as
a primary competitor and they are more focused on entertainment.
Speaker 3 (39:14):
Ronnie, there's evidence that was shown at this trial that
you're not always being recommended to connect with your friends
or your family, and groomers have been presented as being
actually shown and recommended children to connect with. This is
an a document that Meta itself had done an investigation.
Speaker 5 (39:30):
With Yes in twenty nineteen.
Speaker 21 (39:34):
Meta internal documents identified groomers, a term that they were
using to define child predators were being served miners as
suggested follows on Instagram. They found that seven percent twenty
seven percent of the follow suggestions made to this cohort
of potential child predators were foreign miners.
Speaker 5 (39:55):
And this came up from the.
Speaker 21 (39:58):
FTC, which was trying to and straight that Meta's acquisition
of Instagram had actually degraded the quality of the app.
Speaker 3 (40:04):
Now, it must be said that twenty nineteen is several
years ago, and now in twenty twenty five. They have
made a lot of steps in terms of child protection
and teen safety, but fully into it for you to
bring us that story, Riley Griffin, thank you and.
Speaker 5 (40:16):
All things meta.
Speaker 3 (40:16):
But let's turn to the case that's been gripping the
tech world too. And it's the final day of the
arguments in a trial to determine how or if to
break up Google search monopoly. Jos Cisco joins us now
and just wrap it up for us in terms of
where you think the balance lies now. Have they managed
to show to the court that search is being so
(40:37):
disrupted at this moment that perhaps they don't need to
unwind some of their payments that they put to Apple
for example.
Speaker 22 (40:45):
I think the judge is fairly skeptical of Google's argument
so far. Whether he wants to go so far as
to break up the company and force them to sell
off off Chrome, I think that's sort of up in
the air. But this idea of cutting off the money flow,
I mean, he found in his ruling last year that
(41:06):
the payments were anti competitive, so it's hard to imagine
that he wouldn't want to stop sort of cut off
that money flow. At the very minimum.
Speaker 4 (41:16):
A lot of the headlines been driven by partners and
competitors testimony. What has been for you the biggest headline
about how some of those witnesses have described the market
and how they think this should be resolved.
Speaker 9 (41:33):
So there's all.
Speaker 22 (41:34):
The trial has been very forward looking because the Justice
Department wants to sort of prevent Google from getting a
monopoly in the next iteration, the next generation of search,
which is generative AI, and so there's been a lot
of testimony from companies like open Ai and Perplexity, and
even at Apple as well about how they want to
(41:58):
incorporate those types of products into the search, into their
browsers and their search engines. And Apple was sort of
which benefits immensely from Google's payments to something like twenty
billion dollars a year or more. They were sort of
it was very interesting to see them kind of downplay
the importance of Google's like current search product, their core product,
(42:21):
and play up the future of search being AI, which
I don't think.
Speaker 9 (42:26):
Is wrong, but they also have a lot to.
Speaker 22 (42:29):
Lose if they if those payments are cut off, so
they don't want they want to make Google's current products
seem less important, so the judge will leave.
Speaker 4 (42:38):
It alone alphabet on course to shed one hundred and
thirty billion dollars in market cap this week alone. Bloomba's justisco,
thank you very much. That does it for this edition
A balloon bag technology character, it does.
Speaker 5 (42:49):
What a week?
Speaker 3 (42:49):
What a week of turbulence around tariffs. We have much
anticipated going into the Chinese negotiations, but look at what's
happened to Bitcoin ed over the last five training days,
up more than seven percent.
Speaker 5 (42:58):
We clipsed that one hundred one thousand dollars mark as well.
It's risk on there. Don't forget to check out our podcast.
This is Brumo Technology
Bloomberg Audio Studios, podcasts, radio news from the heart of
where innovation, money and power collide in Silicon Valley and beyond.
This is Bloomberg Technology with Caroline Hyde and Ed.
Speaker 2 (00:19):
Ludlow, married from New York and San Francisco.
Speaker 3 (00:35):
This is Bloombag Technology coming up. President Trump, he floats
potentially in eighty percent tariff on China ahead of negotiations
due to begin Saturday. This has I urged Beijing to
do more to open up their markets to US goods.
Speaker 4 (00:48):
Plus, Apple's working on youtuip for future devices including smart glasses,
Powerful max and AI servers, and lift shares.
Speaker 3 (00:56):
Jumping this morning, it's biggest interday rise in November, so
after the Right and Company reported strong gross bookings in
their first quarter. But first we check in on these
markets and we're actually relatively calm.
Speaker 5 (01:07):
We headed towards the weekend when we actually see a.
Speaker 3 (01:09):
Little bit of a draw down on the last past
five training days. After two phenomenal weeks of gains on
the NASAQ one hundred, we just trimmed by two tenths
of a percent. Ed, it's all about tariff's It's all
about negotiations with China, whether there's any sort of ice breaking.
Speaker 4 (01:24):
Yeah, and that's why I'm looking at Tesla right. I
don't see a catalyst or a headline driver on the
terminal this morning, but Tesla is headed for its third
straight weekly gain. It's the biggest run of gains on
a weekly basis September. The logic in the last twenty
four hours has been if the tariff narrative with China improves,
names like Tesla will see a bit of a reprieve.
(01:44):
Tesla exports some vehicles from Shanghai. The mix of vehicles
when more of them come out of Shanghai is higher
margin for Tesla. Is that the logic that the market's applying.
What we're trying to do is extrapolate from what the
President said yesterday about what might happen in the context
of tariffs, and then he takes the truth Social and
says some.
Speaker 6 (02:02):
More he does.
Speaker 3 (02:03):
Let's bring up that truth Social post from President Trump
earlier this morning saying that having eighty percent tariffs on
China seems about right, and then leaving it up to
Treasury Secretary Scott Besson. Let's get you the inside track
with blumbg's Michael Shepherd. Mike look, eighty percent, is that
a positive or negative for the market.
Speaker 7 (02:22):
Well, you know, if the market, we're looking for a
big concession on this. They got in absolute terms of
significant cut from the current one hundred and forty five
percent tariff level. But keep in mind, Carro, that eighty
percent tariffs on goods coming in from China is still
pretty eye watering. It's at a level that would discourage
most trade. And we've seen companies, including Apple for instance,
(02:45):
trying to shift their supply chains and supply lines when
it comes to China to reduce their exposure to China
when it comes to goods exported to the US. And
it's interesting that the President is also framing this as
a challenge to China to open its markets, even as
he is maintaining what would be a historically high barrier there.
Speaker 4 (03:07):
Mike, the President, indeed, the British Ambassador to the US,
Peter Manerlson, kind of framed this as a great deal,
the ten level tariff UK to US. But what everyone
kept asking in the Q and A is is this
the template for your other negotiations? And I think the
President basically said ten percent's a great deal. It won't
(03:27):
be like that for other countries.
Speaker 7 (03:30):
Well, that's right, ed, and that really is the question
on the minds of trading partners and companies around the world.
They want to know, how do we negotiate with this
administration that has come in really elbows out on trade
from the start. And what we heard from Howard Lutnik
last night was that, look, this may not be a
template per se, but it is a roadmac It gives
(03:51):
a sort of frame two other countries to trading partners
about what sorts of concessions.
Speaker 8 (03:57):
The Trump administration might be looking for.
Speaker 7 (04:00):
When it comes to the UK, they came in with
some offers that were quite appealing to Donald Trump.
Speaker 8 (04:05):
Won the UK agreed to buy.
Speaker 7 (04:07):
Thirteen billion dollars worth of Boeing aircraft, very much music
to his ears as he tries to stoke the manufacturing
base here in the US, and also some agricultural concessions too,
with promises to increase purchases of American beef. So between
beef and airplanes, the UK found a way to get
that reciprocal tariff lowered all the way to ten percent.
(04:29):
That may not be the case with other countries, and
certainly negotiations with South Korea and Japan, which have a
heavy tech exposure and interest, will face a much tougher
and more complicated road.
Speaker 8 (04:40):
How link indicated yesterday ed boom both.
Speaker 9 (04:43):
Michael Shepherd in Washington, d C. Thank you.
Speaker 4 (04:46):
In other news, China's top chip maker, Semiconductor Manufacturing International,
plunged Friday after it worn sales could fall as much
as six percent this quarter because.
Speaker 9 (04:56):
Of production disruptions.
Speaker 4 (04:58):
The company's co CEO unspecified issues with production lines and
warned of a likely shipment correction in the smartphone market
over the summer.
Speaker 5 (05:07):
Carrot more on smartphones.
Speaker 3 (05:08):
Let's turn to Apple, but actually the tech giant is
said to be designing new chips to be used in
future devices, smart glasses, more powerful max AI servers.
Speaker 5 (05:16):
Let's get to Mark German.
Speaker 3 (05:17):
Who's been breaking all of this news, and finally, well,
those meta ray bands are going to have some competition,
but it'll take a couple of years.
Speaker 6 (05:25):
That's the big news here.
Speaker 10 (05:26):
The meta smart glasses will have some competition from Apple.
Apple has been working on glasses projects for some time,
including classes without augmented reality like the metas, and glasses
with augmented reality. Those are coming further down the road.
But you need a product to hold you over till then.
They've seen the metas are popular. They've seen that artificial
intelligence is going to be a big part of hardware.
(05:48):
So they're going down this road. And as they've done
with other new product categories, they're developing a custom chip
for these glasses. And this chip is based on the
Apple Watch processor.
Speaker 6 (05:57):
Right.
Speaker 10 (05:58):
It has special components in there too to increase power efficiency,
decrease power draw, and control multiple cameras that would be
on the exterior of these glasses, and they would work
like metas where you can look at items and ask
it for context using Siri mark.
Speaker 4 (06:14):
Generally speaking, this is consistent with apple strategy on custom silicon. Right,
many of the processes across the range of devices are
Apple's own and I believe made by TSMC, fabricated by TSMC.
Just explain Apple's footprint in that sense.
Speaker 10 (06:30):
Yeah, the Apple for footprint is that they have their
own custom processors and basically every device they sell. They
moved away from Intel in twenty twenty. For the Mac,
the Mac now has these high end M series processors,
the Vision Pro and the iPad of the M series processors.
At this point, the iPhone and the lower and iPads
have the A series processors. They make their own chips
(06:50):
for AirPods for Apple watches, and so of course they're
going to do it for the glasses as well as
a significant product category within that vision brand in our likelihood,
and they used here and C like you said, for
that final manufacturing. But much of the design is done
in house from Apple in their labs across Europe, across
the United States, and they do have a license with
(07:13):
ARM and they use fundamental underlying technologies from ARM.
Speaker 4 (07:17):
Yeah, many people talk to me about Apple in the
context of it being a fabulous chip designer in its
own right, which is a fascinating move. Bloomberg, Mark German,
thank you very much. Now coming up, we're going to
speak with the Lift CEO, David risher Is. The company
posts better than expected gross bookings for the first quarter.
Speaker 9 (07:34):
This is Bloomberg Technology.
Speaker 5 (07:43):
Time now for talking tech.
Speaker 3 (07:44):
And first up, as you see shares a crowd strike
lower today, US prosecutors regulators, they are proving senior executors
over what may have been known by them about it's
thirty two million dollar deal with Carasoft into the IRS.
Now that's a quarter to sources. Investigators are looking into
other transactions made by CrowdStrike and said to have.
Speaker 5 (08:04):
Questioned former employees.
Speaker 3 (08:06):
Plus TSMC rising today is the company posted a revenue
jump of forty eight percent in April. This has companies
increased purchases of essential components ahead of global tariffs. TSMC
says that they see continued resilient demand from ai but
recent surgeons in Taiwan's dollar that compression of the company's
margins going forward, and Panasonic is cutting ten thousand jobs
and an effort to boost profitability, shifting focus into growth
(08:28):
areas now. The four percent workforce reduction can see five
thousand employees in Japan and five thousand overseas.
Speaker 5 (08:33):
Personnel if they let go in the fiscal year.
Speaker 3 (08:36):
Panasonic expects about eight hundred and ninety five million dollars
in restructuring charges this year.
Speaker 4 (08:41):
ED Let's Go Back to Technology earning shares of LIFT
up around twenty percent so far today, on track for
their biggest jumps since November, company posting a better than
expected gross bookings of four point one six billion dollars,
and Little Sweetener announced an expanded share by Back program.
Speaker 9 (08:59):
LIFT CEO Dave joins us for more. Good morning, David.
Speaker 4 (09:02):
There's something really interesting in your kind of forward looking
strategy commentary on the cool Uber talks about something the same.
There are parts of this country, America where ride share
is less pervasive, people don't use as much, probably they
drive their own car.
Speaker 9 (09:17):
You want to go after that market? Why and how so?
Speaker 11 (09:22):
The answer is, we've gotten really good at obsessing over
our customers and we want to take it bigger and
go bigger. I mean, look, this is our sixteenth consecutive.
Speaker 12 (09:31):
Quarter of growth. You know, we're a profitable.
Speaker 11 (09:34):
Company, We're you know, generating nine hundred million dollars of cash,
and yet yet the rideshare market are still tiny. One
hundred and sixty billion rides in the United States every
year and we only do a couple three billion between
the two of us. So there's so much opportunity. It
really is better to be in the back of the
car having someone else drive you, and we want to
do it in places like Indianapolis and others where you know,
the opportunities even bigger cash.
Speaker 4 (09:56):
When last year on which was just a few weeks ago,
we were talk talking about M and A in Europe,
and with respect, it was a modest deal. The buy
back is clearly well received by your investors. Yeah, but
that would indicate that you have some ability to do
m and a going forward you know, do you see
that in your capital plans? And if you did buy something,
(10:18):
what would it be.
Speaker 11 (10:19):
So, so, first, thanks for acknowledging it's true. I mean,
this is a business that is now generating nearly a
billion of dollars of cash in the trailing twelve months.
Speaker 12 (10:27):
So that's a wonderful place to be.
Speaker 11 (10:29):
Again, huge thanks to the incredible team that has been
working so dang hard to make this business not only
great for customers, but great for shareholders as well.
Speaker 12 (10:38):
So now the question is, right, what are other opportunities?
Speaker 11 (10:40):
I would say our near term focus is making the
cash that we've got, you know, putting it to work.
As you say, we just acquired free Now, which will
allow us to expand internationally.
Speaker 12 (10:49):
You know, nothing more.
Speaker 11 (10:49):
Obviously to announce right now, aside from the buyback, of course,
but it's great to be in a strong position. We've
got a strong balance sheet and a strong income statement,
so it feels that's a good place to be and.
Speaker 3 (10:58):
It's a strong position that you manage to defend off
engine capital, David, in terms of they were a pushy
investor wanting changes potentially a board level, but they've withdrawn
that because of what you've given to the investor base
in terms of buybacks, David.
Speaker 5 (11:12):
Is that a cyber relief?
Speaker 12 (11:15):
I mean, you know, we talk to investors all the time.
Speaker 11 (11:19):
I would say maybe not so much the cyber relief
as much as just it absolutely allows us to continue
to focus on our riders and our drivers.
Speaker 12 (11:26):
That's sort of the big thing.
Speaker 11 (11:27):
But it's great that investors are responding so well to
what it is that we're doing. Again, share buy back
is great. You know, profitable growth, you know, quarter after quarter,
that's great.
Speaker 12 (11:36):
And this is what I've always said, it's.
Speaker 11 (11:38):
Customer obsession that drives profitable growth, and we're sort of
seeing that play out now.
Speaker 3 (11:42):
And that customer obsession drives innovation, drives autonomous vehicles. I
know you're looking at Atlanta, You've got a partnership there.
How much are you're going to see driverless vehicles automatically
you're going to have safety drivers in the car.
Speaker 5 (11:54):
What is that going to look like as a pilot.
Speaker 11 (11:56):
Yeah, so this is a pilot that we're doing with
main Mobility set back. Autonomous vehicles are going to come.
Right they're here in San Francisco, you see them everywhere.
They're obviously in La and Austin and other places as well.
Speaker 12 (12:07):
They'll come.
Speaker 11 (12:08):
It'll be many, many years before they're a big deal,
but as they come, it's such a great opportunity for
ride share and for a lyft because it allows us
to you know, provide better service, you know, using different technologies.
Speaker 12 (12:18):
As you say, we'll be.
Speaker 11 (12:19):
Starting in Lantam in a couple of months, middle of
the summer. We will start with a sort of a
confidence driver, someone else in the car to kind of
help make sure that people feel comfortable.
Speaker 12 (12:28):
With what's going on there.
Speaker 11 (12:29):
It'll be a fairly small scale pilot, but this is
something it'll grow into Texas next year with a partnership
with mobil I and others, and then we'll.
Speaker 12 (12:36):
Just keep building and building and building.
Speaker 11 (12:37):
To the point where drivers are driving millions of people
and autonomous vehicles are driving millions of people as well.
Speaker 4 (12:42):
David, you're a technology CEO, and as such you must
field questions on economics and the state of trade and travel.
Speaker 9 (12:50):
It's our favorite thing to do.
Speaker 4 (12:53):
Squ Uber reflected on the idea of cross border travel
Canada into the US, the inbound travel into the US
being soft business travel. People arrive at airports, are they
or are they not doing ride share? What are you
seeing through the consumer about the state of this economy.
Speaker 12 (13:08):
I don't say we're seeing strength. And I know a
lot of people are trying to look granula where why?
Speaker 11 (13:13):
So I'll give you a couple of examples. Let's actually
go back literally to earlier this week Sinkle demyle, right,
that's not a holiday, that's necessarily a huge thing. But
at the same time we saw one of our biggest
sink of demios ever, it's a very very strong day.
Speaker 12 (13:24):
Let's go back to the end of March.
Speaker 11 (13:25):
Last week in March was actually our strongest week ever
in terms of ride value. I think what we're seeing
here is ride share has become a very sort of
base staple part of so many people's lives that I
don't really expect a sort of consumer sentiment fluctuates around
to see that much difference. I'll talk about airports for
just a second, because you asked airports basically quarter to
quarter are flat. It is true, consumer, excuse me, the
(13:49):
commute is going up faster, so if you look at
it that way, consumer's growing a little bit faster.
Speaker 12 (13:53):
Excuse me, commute, I keep saying that.
Speaker 11 (13:55):
But you know, again, even when you look at airports, gosh,
it's only one in five people use rightdchhair to get
to reports in the first place. That means eighty percent
is still out there for sort of the you know,
the picking. So I think our big focus is trying
to expand the market. I don't think that the macro
stuff is a big deal right now for us.
Speaker 5 (14:10):
You're growing in Canada, David.
Speaker 3 (14:12):
And it's interesting I've asked this time and time again
a start of IBM asked, a vouba ask of a view.
Is there any impact from being an American brand going
into a country such as Canada right now?
Speaker 5 (14:22):
Because we are hearing of pushback thirty seconds you know, it's.
Speaker 12 (14:25):
So interesting, No, is the real answer.
Speaker 11 (14:28):
In fact, we've just got authorization to open in Quebec,
in the province of Quebec, which which we might have
wondered whether it was going to happen given everything going on.
So no, we've actually seen acceptance. Actually, Toronto's a big
city for.
Speaker 3 (14:39):
Us, going super well, David Risher, so great to catch
up with you Thinbous some the numbers.
Speaker 5 (14:43):
We appreciate it.
Speaker 11 (14:44):
Lift to see it is a pleasure, Thanks you guys.
Speaker 4 (14:55):
Pinterest ches up after the company reported second quarter revenue
guidance that beat expectations and told analysts the platform was
leveraging AI to attract advertisers. CEO Bill Ready spoke to Bloomberg.
Speaker 6 (15:07):
Earlier, pintresses where gen Z goes to shop.
Speaker 13 (15:10):
Gen Z is now our largest fastest growing demographic, over
forty percent of our users. And you know they're coming
here to shop. We're giving them a great shopping destination.
But you know that has allowed us to deliver great
performance for our advertisers. We've delivered a performance advertising platform
where advertisers can get clicks and conversions and great performance.
We're giving them AI enabled tools, so it's easier than
(15:32):
ever for them to go create campaigns on Pinterest and
see really great returns on that. So that's the other
side of the business is that we've made Pinterest a
shopping destination. Eighty five percent of our users come to
us directly, and then we connect them with advertisers to
make it really easy for advertisers to connect with those users.
In this moment where they're in market looking for something
to buy but haven't decided what to buy. That's a
(15:53):
great moment for those two to meet, and we see
that continue to accelerate. We're all time highs on users
and all time highs on depth of engagement per user,
really driven by AI and the personalization there and then
how we're connecting shoppers and sellers.
Speaker 3 (16:09):
So, is that keeping the likes of Timu and Sin
who a lot of those gen zs are going to
buy on your platform?
Speaker 5 (16:16):
Is that sticking around because many had worried.
Speaker 3 (16:18):
Because of the towers, because of the difficulty accessing the
US and consumer in terms of price point, what we'd
see retrenchment in terms of ads from those companies.
Speaker 13 (16:26):
Yeah, Well, we're a global platform. You know, we're overre
you know, five hundred and seventy million users. Eighty percent
of those are outside the US, and so we noted
as others that for Asian cross border sellers, you know,
that has slowed down coming into the US, as others
have noted as well. But we're seeing those sellers sell
more globally and we're helping them to connect to other
markets around the world. Here in the US consumers are resilient.
(16:49):
You know, there's lots of public spending information that says
that consumers are still shopping. We went through a major
supply chain destruction just a few years ago during the pandemic,
and you know, we all saw, you know, things are
out of stock and consumers found other ways to buy,
other things to buy.
Speaker 6 (17:03):
And we see that happening on our platform.
Speaker 13 (17:05):
That while you have things like budget conscious searches like
you know, budget friendly recipes or you know budget you know,
party decorations, budget party favors, and those kinds of things
up two hundred percent plus here on here. People find
substitute products, they find other ways to go sort of
bring delight into their life, and we're a great place
(17:25):
to help them do that, in a great place for
advertisers to see these shifting consumer trends.
Speaker 3 (17:30):
Bill Ready speaking to us earlier, and let's just stick
with earnings, with the consumer sentiment as well. Let's go
to buy now, pay later company. A firm look shares
our trading lower, but they actually increase guidance.
Speaker 5 (17:40):
A firm CEO, Max Livtin is.
Speaker 3 (17:42):
Here with US analysts calling this a knee jerk reaction
and ultimately maybe some lofty expectations. But are you, like Bill,
are you still seeing the consumer spending right now?
Speaker 14 (17:51):
We are, We really are, He's He's exactly at A
couldn't agree more. US consumer has been resilient. They found
new things to buy, new things to be excited about.
We're seeing really strong growth, which is posted three six
percent GMB growth and that's a third quarter in a
row acceleration. So the rumors of US consumer decline are
somewhat exaggerated, it seems.
Speaker 5 (18:10):
And maybe it's lofty expectations.
Speaker 3 (18:12):
I'm sure you're going to tell me you don't check
in on the shares very much, but when you do
see sentiment like this on the back of your numbers, what.
Speaker 5 (18:18):
Do you think investors are shying away from? Is it competition?
Speaker 12 (18:23):
You know?
Speaker 14 (18:23):
Hard for me to tell. I try not to check
too often. I primarily care about it from the point
of view of the team feeling that their hard work
is actually understood by the market.
Speaker 6 (18:32):
And I think it.
Speaker 14 (18:34):
Took our consumers and our merchant partners about a decade
to fully grasp just how different and how a creative
we are to their sales, and just how powerful this
whole new idea is and then it just happened. And
so you know they say slowly at first, then all
at once. That's my that's my hope for the market.
Speaker 9 (18:55):
Max. Hello, let's talk about Costco.
Speaker 4 (18:58):
You have this arrangement with Costco to allow a Costco
costumer to pay over time. I am a Costco member
and have a City credit card, and the benefit of
the card is that it gives me five percent cash
back on gas or four percent on groceries. Right, so
I'm incentivized there. You and I've talked about this a lot, right,
the sort of academic approach to whether you should put
(19:22):
something or credit or not. Just explain how you think
you're going to be competitive against Costco members like I
with this offer.
Speaker 6 (19:30):
You know, I'm not sure I'm going to be competitive.
Speaker 14 (19:32):
I think Costco card, like everything offered a Costco, is
a great value. And you know it's certainly not a
thing we are trying to talk you out of if
you are truly committed to it. We speak to a
younger demo than a typical credit card consumer who is
very miles towards et cetera.
Speaker 6 (19:49):
Conscious.
Speaker 14 (19:50):
They choose to borrow with a firm because they have
a point of view on They don't like credit card debt.
They want to know exactly the true cost of the
thing they're buying. They want to know when they're out
of debt and fully paid out. And they're less interested
in rewards, much more interested in just transparency of pricing.
And I think Costco understands that as they try to
(20:13):
attract younger buyers, and that's why they partner with us.
Speaker 4 (20:17):
I am no longer in the younger demographic.
Speaker 6 (20:19):
And they're still you're still in a very young demographic.
Speaker 9 (20:24):
Max.
Speaker 4 (20:24):
You know the performance, you know, the top end of
the guide was above consensus. Just where were the specific
elements of strength for you? Is there anything you're doing
on the technology side that's giving you a real advantage.
Speaker 14 (20:37):
No, it's very fashionable to flash your AI credentials, but
we have built a really, really meaningful business entirely on
the strength of AI and machine learning all these years
underwriting consumers with alternative data, completely different approach to modeling,
while of course remaining fully compliant with all the applicable laws.
(21:00):
So we are a technology first company with real depth
of approvals, while maintaining our core values to just no
laid fees, no compounding, interest, no deferred interest, all the
things that you sort of people love to complain about
when they talk about credit cards. And that's given us
real strength with the younger consumer gen Z. Just like
Bill said, you know, we have a huge penetration into
(21:21):
millennial demographic gen Zy demographic.
Speaker 6 (21:23):
That's what retailers come to us for.
Speaker 14 (21:25):
They want to attract this younger buyer who really does
differentiate between Hey, I don't want to revolve.
Speaker 6 (21:30):
I don't want to.
Speaker 14 (21:33):
Think of this as a buy now, pay forever, which
is you know what much much credit cards are?
Speaker 6 (21:38):
Yeah?
Speaker 3 (21:39):
Is that younger demographic? Is any of your demographic starting
to use you more? Because the economic uncertainty is that
what you actually anticipate going forward?
Speaker 6 (21:47):
It doesn't appear to be that way.
Speaker 14 (21:49):
I don't think we are gaining share because of economic uncertainty.
Speaker 6 (21:55):
You know, TVD.
Speaker 14 (21:55):
We're living in volatile moments, so who knows what's going
to happen next. But right now our consumer comes to
us more than anything for the clarity and the transparency.
Speaker 6 (22:04):
But most importantly, I think we are.
Speaker 14 (22:08):
Seeing increased growth right now because of all a zero
percent offers that we're seeing that the work we're putting
into the market right.
Speaker 9 (22:13):
Now a firm CEO, Max left Chin. Great to have
you back with us. Thank you very much.
Speaker 5 (22:25):
Welcome back to Blue Meg Technology. I'm Caroline Hide in
New York and.
Speaker 4 (22:28):
I met Ludlow in San Francisco. Let's look at the
markets on the week and technology in particular, and as
that one hundred as it stands very modestly in decline
over the course of five days. Tariffs have been what's
driving things. I just want to look at alphabet paran
of Google right the doj antitrust remedy trial is one
factor search considerations. Rivals coming out like Apple and saying
(22:53):
this is what we plan to do in the search
market is really impacted their stock on Wednesday, one hundred
and forty seven billion dollars in market shed alone on aggregate,
heading to about one hundred and twenty billion dollars a
market cap decline. Later in the program, we'll get into it,
and in terms of specific movers, we're going to go
to the earnings context very shortly. But think about the
strength that we're seeing in streaming Cara in particular, and
(23:16):
then not just here in America, but we've got some
interesting us from around the world.
Speaker 5 (23:20):
We did, and it's your world of gaming end.
Speaker 3 (23:22):
Because let's turn our attention to Nintendo projecting actually weaker
than expected initial sales for the Switch too, despite overwhelming
pre orders and market expectations that it would be the
fastest selling console in history.
Speaker 5 (23:34):
Jason Schards joining us on what is this? You know?
Off by three percent?
Speaker 3 (23:38):
They've got trade and tariff's to be thinking about. But Jason,
why the slower than anticipated sales?
Speaker 9 (23:44):
Tariffs are the big one.
Speaker 8 (23:45):
Nobody knows what's going to happen.
Speaker 15 (23:47):
Nintendo included, they make the majority of switch tos that
are sold in the US. They make in Vietnam, which
is one of those tariffs that is still unpaused for
ninety days according to President Trump. So I guess we'll
see what happens there. The other factor is supply shortage.
That's always a question surrounding the release of these new consoles.
(24:08):
How many can they actually manufacture and get to US shores,
whether or without tariffs.
Speaker 4 (24:14):
There's definitely a technology conversation had with the Switch to
right inside of it is a high performance and video
processor that takes the Switch to from being a kind
of lower fidelity, lower performance console to being more on
par with PlayStation and Xbox. You know what is going
to be different this time around for the Switch, Like culturally,
(24:34):
how do you think people will approach what it can
do and the types of games you can play on it.
Speaker 15 (24:40):
It's interesting this issue comes out of a really fascinating
time for the video game industry in that graphical Fideli
has not really gotten that much more impressive over the
last four or five years. So Nintendo is pretty well
positioned even with technology that is a few years old
at this point, even technology that is five six years old,
it is in a good position to still sell games
(25:02):
and compete with the other two consoles. I mean, the
other big factor is that people buy Nintendo consoles for
Nintendo games. They want Mario, they want Zelda. Mario Kart World,
which is launching alongside the Switch too, is expected to
sell a kajillion copies of the last one sold over
seventy million units alone. So we're talking about a customer
base that is built in and doesn't care quite as
(25:25):
much about graphics, about the highest end GTA level games
as much as they do about these franchises that are
really always consistently good bluebags.
Speaker 4 (25:35):
Jason Schreyer, who leads our video games industry coverage.
Speaker 9 (25:38):
Great to have you on the show. Thank you very much.
Speaker 4 (25:40):
Let's stick with earning shares of Trade Desk for flirting
with the best day in more than two years, getting
a boost from better than expected q ON results and
upbeat forecasts. The best performer on the Nasdaq one hundred
in terms of percentage gain. Laura Martin, Media, Senior Entertainment Analyst,
joint US. Now, now let me do this. What is
(26:02):
trade desk?
Speaker 9 (26:04):
What does it do and does it do it well?
Speaker 16 (26:08):
What an excellent question.
Speaker 17 (26:10):
Okay, So Trade Desk is a demand side platform, a DSP,
and so when you load a web page of a
news article you're watching, Trade Desk delivers an AD in
real time in milliseconds, and that ad has actually gone
to auction in those milliseconds because they know who you are,
and they know how much money you make, and they
know that you're in the financial industry. So your AD
(26:32):
units that are getting served to you in milliseconds are
very valuable, much more valuable than like, you know, my kids,
who earns no money and lives at home. So Trade
Desk delivers those in milliseconds, having bought them at auction
and they represent the largest two hundred advertisers. I think
technically they have, you know, four thousand ad buyers, but
they only represent ad buyers typically top of funnel without
(26:56):
a performance metric associated with it.
Speaker 3 (26:59):
They're doing strategy, got grades Kokai, they say, is giving
them more power than ever. It's interesting, Lad, They're obviously
delivering on a technology front, but there's got to be
a resilient desire to be advertising this moment. We've seen
that from Meta, We've just seen it from Pinterest as well.
From your perspective, is the advertisers, the marketerstre willing to
spend in this environment.
Speaker 17 (27:18):
So every company has now reported earnings on every call
they've gotten. Asked since April second, terraffs, have you seen downdraft?
And with a couple exceptions, everybody else has said no.
Trade desk said no. To date, it's been five weeks
since April second, they have not seen downdraft other than
in areas like autos or home appliances is down like
(27:40):
forty percent with one company I talked to since April second,
and you guys probably saw like the ports are empty.
They've turned around these container ship carriers and they're going
back home rather than try to empty in the ports
and pay the tariffs. So I think this might be
a gathering storm. But so far Trade Desk has not
seen impact.
Speaker 9 (28:01):
Of Terras Laura.
Speaker 4 (28:03):
This week in Europe we had the semi final of
the Champions League, which makes me think about Paramount. You know,
just as a case study, they showed some streaming strength,
but on aggregate, what have you learned about the streaming
landscape this far and particularly consumer attitudes to all of
the platforms available to them?
Speaker 17 (28:22):
Right, so we can talk about dizz Disney, Warner Brothers,
Discovery and Paramount like all together big streamers, which is
the source of question. But from a stock point of view, first,
I just want to make a distinction because Paramount revenue
felt ten percent, Warner Brothers fell six percent, and both
of them were projecting negative four percent revenue growth this
(28:45):
year and flat next year, which begs the question why
do you need to be in these now because they're
still not growing. Disney, by contrast, revenue up seven percent.
We're showing revenue up four percent this year and four
percent next year. A lot of that is driven by streaming,
so that's where I get to the answer to your question.
A lot of that is driven by you know, not
(29:05):
only does Disney have better have more diversity of assets,
of course, but it also has better films, which helps.
Although films less than fifteen percent of the business at
Walt Disney these days, but streaming is what's really driving
that outperformance compared to Paramount, compared to Warner Brothers, Paramount
has the overhang of can it's deal get done? That's
a big that's a big like cloud on Paramount. But
(29:27):
the fundamentals of streaming are a bright spot. But if
you can't make good films or you can't sell good TV,
it's you have a big linear TV business, which both
Paramount does and Warner Brothers Discovery does.
Speaker 16 (29:41):
Like it's a problem, right because it's a shrinking to guests.
Speaker 3 (29:44):
I mean, also, what's the problem is if you're suddenly
going to have massive costs on your movies going well anywhere,
being able to make content abroad, being able to bring
foreign made produced content into the United States that has
been proposed by the administration seems to be hurting the
very industry that they're trying to protect. Right now, what
(30:04):
is the impact on paramount. What is the impact on
Disney if this does go into full.
Speaker 17 (30:08):
Force, right, No, it's an excellent point because he is
trying to help the industry. But as you know, films
take three years to make, so the tariffs immediately would
hurt a film that started three years ago before this
policy existed, before the companies could react. So every film
trying to come back to America that's been made offshore,
whether it's tax advantage or not.
Speaker 16 (30:28):
You watch Mission Impossible.
Speaker 17 (30:29):
They are going for the tax breaks, right, They're going
for these really exotic locations, and they don't like money.
Speaker 16 (30:35):
Isn't the reason they're off shore. They're off sure for
the art of it, like for where, like.
Speaker 17 (30:39):
The plot line. So now those films are coming back
over the next two years, and they're all going to
be taxed at one hundred percent Like that is not
helpful for the industry.
Speaker 4 (30:49):
I mentioned it at the top of the block about
alphabet and Google. Right, it's been an astonishing week frankly
about revelation in the antitrust context.
Speaker 9 (31:00):
You focus on YouTube historically.
Speaker 4 (31:02):
When we talk about the streamers, but just in that
antitrust context, have you sort of recalculated remodeled. The future
you see for Alphabet and its various properties largely search.
Speaker 16 (31:14):
Yeah, like our policies.
Speaker 17 (31:15):
You know, we do evaluation of YouTube as a standalone
entity every single quarter this company.
Speaker 16 (31:21):
My opinion is Google is worth more.
Speaker 17 (31:23):
On Alphabet is worth more in pieces than it is
together because it's my opinion that people within the Alphabet
holding company framework get subsidized by search, so they are
not required to make money as if they're a general
manager of their P and L. I think the best
thing that could happen for ad Tech is for them
to be forced at the September hearing to spin off
(31:44):
the ad server and the SSP their supply side, which
is the marriage piece to prade desperate cert. If they
got that would be really great for ATIK. It would
also be good for not the Google perimeter that stayed behind,
but the Google asset. The managers that happen to have
to to compete for the first time and not get
the benefit of being tied to search data and YouTube data,
(32:06):
which is best in class like consumer data. So and
I think the more Alphabet gets smaller, the more they
can focus on what matters, which is solving the search problem.
Now that AI is here and making sure YouTube remains
the number one streamer on Earth.
Speaker 3 (32:21):
Laura Martin, It's always great to catch up with you.
Happy weekend speech.
Speaker 5 (32:24):
You see. We hope of Needham appreciate it.
Speaker 3 (32:26):
Meanwhile, coming up, more earnings, more CEOs, Draftking CEO Jason
Robbins joins us discuss the company and will slightly cut
to its guide as a Bluebote technology.
Speaker 4 (32:47):
Draftking shares rising, with investors shrugging off the company's reduced
full year guidance after a customer friendly March Madness weight
on sales. Draftking CEO Jason Robbins delighted, say joins us.
There has been some, let's say, back of the Napkin
math and people look at the revenue forecast being lowered
(33:09):
by about two hundred million dollars. Right, Bear with me, Jason,
Is that exactly how much Draft Kings lost on March Madness,
the two.
Speaker 9 (33:17):
Hundred million dollar figure.
Speaker 18 (33:20):
No, we actually put out the numbers.
Speaker 19 (33:22):
We have a bridge in our earnings materials.
Speaker 18 (33:24):
It was a little bit less, but overall it's not
too far off.
Speaker 3 (33:29):
Okay, talk to us a little bit about what's too
far off as well? What else is driving perhaps an
expected downgrade in full year guidance. Analysts seem to be
taking as well on the chin as our investors, but
the regulatory environment as well.
Speaker 5 (33:42):
How much you haven't in you once for that?
Speaker 18 (33:45):
Well, what we we put this out there. We had
about one hundred and seventy million from sport outcomes and
then thirty million came from jack Pocket being caused to
not be operating anymore in Texas. But then the overall
fundamentals of the business were actually very strong. We saw
increased to structural hold rate, our promotional efficiency increase, so
(34:07):
some of those things offset as well. So really the
fundamentals of the business are about as healthy as can be.
And I think the real question is will all these
sport outcomes turn around in two quarters in a row now?
But obviously that happens, and that's part of the greatness
of the product is that customers can win and they
can go on winning streaks like this, and it makes
it a lot of fun obviously, and you know, we'll
(34:28):
see it was the first time and I think second
time ever there were all four number one seeds in
the final four. Only the first time ever that that
happened with also all twos in one three seed in
the Elite eight, So you never know, maybe there will
be another year like that, but probably not.
Speaker 19 (34:43):
It was more likely an anomaly.
Speaker 18 (34:44):
And you know NBA playoffs already have had a bunch
of upsets, so it tends to kind of swing.
Speaker 19 (34:49):
Around the other way over time.
Speaker 5 (34:50):
Ah, too much consistency.
Speaker 3 (34:52):
But what also is consistent, Jason, is what a massive
jump in your monthly active uses when you talk about
the Jackpot in particular, and I'm interested in how jackpocket
is transferring to other sports, casino games and the likes
or are people sticking to that lottery application.
Speaker 18 (35:10):
Well, the jackpocket is still very early in its growth,
it's still quite nascent, so we believe there's a ton
of upside for that business and we're excited about it.
We haven't fully integrated it into the DraftKings app yet,
we haven't put it on our platform yet, which should
dramatically increase both the conversion metrics and also the cross
sellability and marketing ability. And the cross sells already well
(35:31):
above our expectations, so we think there's even more upside there,
so we're pretty excited about it. We think there's a
lot of growth potential, but it's still small, so the
overall impact on the business isn't great yet, but hopefully
that changes as Jackpocket continues to grow.
Speaker 4 (35:46):
Jason, in your industry, there are big almost legacy names
Las Vegas Sands, for example, that are pulling out of
bids for land based casinos, and I wonder how much
you can assess their nervousness that online gambling just cannibalizes
demand for land base and how that impacts you.
Speaker 18 (36:08):
Well, it's certainly a perception that we have to fight
because it's out there. I do think that the facts
are very mixed on that. While there's certainly some examples
you can point to where there's been you know, diminishing
markets where they've had online gaming, it's also you know
often where there have been declines going into that, and
then you see the complete opposite story in states like
New Jersey where they grew and really reversed a declining
(36:30):
trend for years after legalizing online gaming. And it's also
a different property to property. I do understand though, why
if you're a company that has no ie gaming play
right now, doesn't have an app, doesn't have a way
to make money off of it, that this wouldn't be
seen as any upside for you, and so naturally, you know,
if there's no upside there, there can only be downside.
Speaker 19 (36:50):
And I do understand that.
Speaker 18 (36:52):
But I think the amount of cannibalization and the downside
has been greatly exaggerated and we need to do a
good job, or a better job, I should say, educate
on that, because the numbers don't necessarily support that story.
Speaker 3 (37:04):
Jason Robbins, Draftking CEO, thanks so much for joining us today.
Speaker 5 (37:07):
I appreciate it. Thank you foring wow, we're going.
Speaker 3 (37:10):
To look with Sticking with sports, we also just caught
up with David Beckham's former teammate Gary Neville. After the
two partner up, they recommitted to buying Saltford City Football
Club alongside global advisor and investment platform can Seller Group
and a whole host of other business executives. Now, Neville
spoke about the importance of content as well as pitch
performance to take it all the way to the Championship
League in the next five years.
Speaker 5 (37:30):
Take a listen you.
Speaker 20 (37:32):
Refer to Obviously Wrexham THEYD done a great job there
over the last few years. But we've been in Salford
now for ten years. We had a documentary nine years ago,
I think the very first fly on the Wall documentary
of a football club that was on the BBC and
used to get millions of people watching it. We definitely
want to revisit that type of model and grow commercial revenues,
but doing it in such a way whereby football is
always deemed as a priority, and you know, there is
(37:55):
great excitement on the ground here. It's a new injection
of life into Salford City.
Speaker 5 (38:02):
On Bloomberg dot com ed, the.
Speaker 4 (38:12):
Federal Trade Commission has spent the past month presenting evidence
to show the social media giant Meta should be broken up,
and testimony from more big names.
Speaker 9 (38:22):
Is expected in the coming weeks.
Speaker 4 (38:23):
Bloombo's Riley Griffin is out on the East Coast in
DC tracking what's going on.
Speaker 9 (38:28):
What is the latest?
Speaker 4 (38:29):
You know, there are so many headlines that come out
over the course of the process based on people's testimony.
It's hard to say where, like net we stand right now.
Speaker 21 (38:39):
Well, we are at the midpoint of the trial. We
expect potentially next week or the week thereafter, Meta to
begin in earnest its defense. But what we saw just
yesterday was Instagram chief Adam musserri defending Meta against the FTC,
which is making the claim that Meta has dominated the
friends and family market that means social media that is
(39:02):
focused on connecting with your friends. It's a tough case
ahead because, as Adam Asseri said, TikTok has emerged as
a primary competitor and they are more focused on entertainment.
Speaker 3 (39:14):
Ronnie, there's evidence that was shown at this trial that
you're not always being recommended to connect with your friends
or your family, and groomers have been presented as being
actually shown and recommended children to connect with. This is
an a document that Meta itself had done an investigation.
Speaker 5 (39:30):
With Yes in twenty nineteen.
Speaker 21 (39:34):
Meta internal documents identified groomers, a term that they were
using to define child predators were being served miners as
suggested follows on Instagram. They found that seven percent twenty
seven percent of the follow suggestions made to this cohort
of potential child predators were foreign miners.
Speaker 5 (39:55):
And this came up from the.
Speaker 21 (39:58):
FTC, which was trying to and straight that Meta's acquisition
of Instagram had actually degraded the quality of the app.
Speaker 3 (40:04):
Now, it must be said that twenty nineteen is several
years ago, and now in twenty twenty five. They have
made a lot of steps in terms of child protection
and teen safety, but fully into it for you to
bring us that story, Riley Griffin, thank you and.
Speaker 5 (40:16):
All things meta.
Speaker 3 (40:16):
But let's turn to the case that's been gripping the
tech world too. And it's the final day of the
arguments in a trial to determine how or if to
break up Google search monopoly. Jos Cisco joins us now
and just wrap it up for us in terms of
where you think the balance lies now. Have they managed
to show to the court that search is being so
(40:37):
disrupted at this moment that perhaps they don't need to
unwind some of their payments that they put to Apple
for example.
Speaker 22 (40:45):
I think the judge is fairly skeptical of Google's argument
so far. Whether he wants to go so far as
to break up the company and force them to sell
off off Chrome, I think that's sort of up in
the air. But this idea of cutting off the money flow,
I mean, he found in his ruling last year that
(41:06):
the payments were anti competitive, so it's hard to imagine
that he wouldn't want to stop sort of cut off
that money flow. At the very minimum.
Speaker 4 (41:16):
A lot of the headlines been driven by partners and
competitors testimony. What has been for you the biggest headline
about how some of those witnesses have described the market
and how they think this should be resolved.
Speaker 9 (41:33):
So there's all.
Speaker 22 (41:34):
The trial has been very forward looking because the Justice
Department wants to sort of prevent Google from getting a
monopoly in the next iteration, the next generation of search,
which is generative AI, and so there's been a lot
of testimony from companies like open Ai and Perplexity, and
even at Apple as well about how they want to
(41:58):
incorporate those types of products into the search, into their
browsers and their search engines. And Apple was sort of
which benefits immensely from Google's payments to something like twenty
billion dollars a year or more. They were sort of
it was very interesting to see them kind of downplay
the importance of Google's like current search product, their core product,
(42:21):
and play up the future of search being AI, which
I don't think.
Speaker 9 (42:26):
Is wrong, but they also have a lot to.
Speaker 22 (42:29):
Lose if they if those payments are cut off, so
they don't want they want to make Google's current products
seem less important, so the judge will leave.
Speaker 4 (42:38):
It alone alphabet on course to shed one hundred and
thirty billion dollars in market cap this week alone. Bloomba's justisco,
thank you very much. That does it for this edition
A balloon bag technology character, it does.
Speaker 5 (42:49):
What a week?
Speaker 3 (42:49):
What a week of turbulence around tariffs. We have much
anticipated going into the Chinese negotiations, but look at what's
happened to Bitcoin ed over the last five training days,
up more than seven percent.
Speaker 5 (42:58):
We clipsed that one hundred one thousand dollars mark as well.
It's risk on there. Don't forget to check out our podcast.
This is Brumo Technology
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