'Bloomberg Technology' Full Show (11/24/2021)

from the heart of where innovation money and power collide in silicon valley and beyond this is bloomberg technology with emily chang [Music] i'm caroline hyde in for emily chang this is bloomberg technology coming up in the next hour supply chain payne continues ahead of the shopping season with retailers struggling to keep supply up with demand how amazon is sacrificing profit to meet delivery times plus zoom has lost 100 billion from its peak as the pandemic fueled rally fades we're going to be live with the zoom cfo kelly steckelberg on how the video platform is planning to maintain momentum going into 2022 and how the tech behind cryptocurrencies is being used for real-world emergencies ava labs is partnering deloitte to use the blockchain to empower first responders while out in the field battling natural disasters we'll get to all of that in just a moment but first let's get to where the market's well managed to show a little bit of green the nasdaq 100 out performing the most greedy gupta is here and it was thin volume but it was higher a little bit of holiday volume already markets kind of hitting the snooze button but nevertheless the s p 500 ending in the green now we had a slew of economic data but the takeaway here that the consumer at the end of the day is still strong that inflation metric that the fed uses still not skyrocketing to the point of worrying that's really why you're seeing these marginal gains in the s p 500 but like you said caroline tech has been outperforming you see that with the new york fang index just a little bit higher i threw onto the board the bloomberg dollar index and yield as well because of course we know tech is extremely sensitive deals that's a relationship worth watching but so is tech's relationship with the dollar because at the end of the day they are both these global havens so really keep an eye on that but as i talk about yields i really want to talk to you about bond volatility in particular because as we start to wait for more signs of this fed liftoff this rate hike liftoff bond volatility i think we have a chart here bond volatility has actually been extremely high equity volatility has been kind of low but you're starting to see that creep up a little bit you can see at the very edge of this chart the white line starting to hint up which tells you in the next couple of weeks as we get more signs from the fed about what's coming next equity volatility and tech stocks in particular which is a big part of the index of course is worth watching let's get back to the intraday action though and talk about what happened today i said the tech was out performing today and you can really see the semiconductors in with that trade up 0.9 percent chinese adrs as well another big component of that new york fang index up 1.2 percent biotech up marginally as well but it was crypto that's been the out performer lately that actually was the lagger today that's your macro story but all the action really was under the hood for those details we go to ed ludlow yeah you mentioned strength in semiconductors i want to get to some of the movers in the day and in terms of the biggest points movers on the nasdaq 100 it was two chip makers in particular that i'm keeping my eye on amd and nvidia amd that stock trading at a record high the biggest jump in two weeks up five percent nvidia also rebounding from two days of losses remember we've been talking about nvidia as having such a significant weighting in terms of technology stocks that are in the s p 500 to the downside electronics are still under pressure but a lot of selling on that stock recently battleground 2042 its latest title not doing so well and oh this one's for caroline actually autodesk i want to talk about autodesk down 15 this isn't a stock that we talk about this is the 55 billion company that we never talk about but i kind of feel that we should they make software for engineering companies they make software for builders who are in the early stages of big you know construction projects look at that precipitous fall on its earnings it's basically narrowed its forecast for this fiscal year citing supply chain constraints i thought to myself hold on you're in the early stages of planning but what they're saying the executives is our customers are suffering right in these industries that are suffering because of supply chain crunches and we are suffering as a result kind of giving some very conservative guidance there finally caroline's been talking about this all day long retailers because we are on the cusp of black friday this busy period of november where there's so much retail activity the biggest drops on record for nordstrom and gap they just can't manage the supply chain they're not able to get inventory it's a missed opportunity for sales and amazon pretty much flat just want to mention some data very quickly from adobe that in the month of november so far out of stock messages are up 227 year-on-year versus january of 2020 right and against pre-pandemic levels november 2019 up 261 percent that is what consumers are facing this week as we go into the thanksgiving and black friday period and it's really interesting for those that are trying to kind of trade off between brick and mortar and in amazon's case e-commerce exactly if they are managing to weather that supply chain pain so smart ed ludlow we thank you mentioning of course well the out of stock messages two billion of them in october alone in the united states 325 from october 2019. that's all according to adobe analytics jordan holman breaks down why supply chain disruptions may mean fewer christmas discounts and perhaps a disappointing black friday looking to get your little one a tonka truck this holiday season well you're gonna have some trouble and if you want to give your spouse a personalized ring or pendant you may already be too late the national retail federation sees 8.5 to 10.5 consumer shopping growth from last year pushing forecasts to almost 860 billion dollars but as shoppers begin spending on gifts many aren't finding what they want online or they're seeing bare shelves in the stores this year supply chain issues are threatening to derail everything 2 billion out of stock messages were sent in october alone that's up 325 from the same month in 2019 according to adobe analytics who is seeing electronics hit the hardest followed by jewelry apparel home and garden and pet products after two years of shopping disruption it's safe to say retailers need a win during these crucial months but it won't come easy concerns around covet shut down factories in vietnam this fall with slow down production containers are piling up at the ports on both the west and east coast of the u.s there are too few drivers to shuttle the goods to distribution centers and not enough space in warehouses and all of this could affect the types of gifts that you want to get for your kid your spouse or pet retailers especially mom and pop shops say that they've had trouble getting tonka trucks puzzles teddy bears bikes you name it and if you usually get a christmas tree this year both live and artificial trees may be harder to come by jewelers are saying better quality larger cut diamonds may be in short supply even florists are having a tough time getting everything from tulips to white roses you may even notice the supply chain bottlenecks when walking into a store ever see more denim jeans than cotton shirts things like books and dolls set to go out on sale just in time for this holiday season are hitting weeks-long shipping delays shipping delays that look like this while retailers race against the clock to stock shelves ahead of the holiday season containers full of goods pile up outside of the ports of los angeles in long beach in the streets of wilmington in the outskirts of the twin ports officials say between 150 and 200 citations are issued for misplaced containers every week for the folks who've already started their holiday shopping more than half said that a product they wanted to purchase in a store or online was already out of stock plus retailers aren't looking like they're going to offer as many discounts this season this holiday season isn't the return to normal that the retail industry expected at the start of this year it has its own set of challenges the biggest message they're trying to tell people is shop early to make it a merry one [Music] need to get me a wreath jordan holmen there meanwhile amazon on the other hand is prepared to actually sacrifice the bottom line to get products to customers on time by going a pretty unconventional unconventional route literally now i want to bring in bloomberg news reporter spencer super who covers all things amazon for us in seattle and all things amazon is thinking creatively about how to get your goods to you at the right time yeah there's um several examples of that and where amazon just finds an alternative solution you know so if the ports in long beach are clogged they'll load up and ship shipping spaces scarce they'll find a ship just with some space we found an example of that where they had a a ship that was loaded with uh rolled steel heading toward uh ultimately heading toward vancouver in british columbia they loaded it up with containers and inventory just the deck of the ship because the whole of the ship was already spoken for they sailed it into a sleepy port in everett about 20 miles north of seattle uh that usually serves the temper and lumber industries and you know basically use that as a way to get inventory into the country even though it's not ideal even though it's not near all of their warehouses in southern california it was still a weight a more expensive and trickier way but still a way to get inventory into the holidays and that's the message they've sent is that they're willing to spend whatever it takes to do whatever it takes to not let customers down over the holidays and that's kind of very in keeping with the amazon we've known to understand on the public markets for years now spencer it's interesting that are they favoring themselves their own products so what about some of the merchants they're favoring their customers will take inventory from anyone and so as uh you know you've been discussing previously on these businesses that are having having trouble amazon is very diversified in its supply chain it has its own products that it sells its own branded products it has uh it serves as a as a you know a retailer itself it'll buy the inventory wholesale and sell it but more than half of the products sold on amazon come from independent merchants who put their products on that site and so that depth it's more than a million merchants uh that depth of inventory coming from so many different places really gives them an advantage because the difference on amazon is rather than uh looking at an empty store shelf you know in a store on amazon if you're looking for something even if you're not finding precisely what you want or even if it's not from amazon they may have an alternative source for it or just an alternative product that still suits your needs so it's where this abundant inventory is really going to come into play so they've got the inventory in now they need to get it to you can they do that that's going to be the ultimate test this holiday season and that's where if amazon breaks down that's where it's going to be you know they're facing a labor crunch they've had to offer signing bonuses of up to three thousand dollars in some warehouses just to get people in the door to pack boxes their uh delivery operation which is made up of these small businesses that operate the amazon delivery bands they have um uh they're all struggling to hire drivers and keep drivers on the road so that's where uh amazon's ultimate test is gonna be kind of get it to your house it's a great read go and get everyone urge everyone to go and read it on our online or on the terminal we thank you wishing a very happy thanksgiving meanwhile coming up we'll talk to zoom cfo kelly sickleberg about the company's latest earnings report as well as the future of work that's next there's a bloomberg [Music] [Music] [Applause] so we've seen a steady rise in work from home stocks since last november as more and more people adopt a hybrid or actually in completely remote rhythm but as things start to settle down we're seeing a slight slowdown in the work from home index which includes companies such as zoom docusign workday and zoom of course after a fast rise in the early days of the pandemic where millions of people adopted its software to remotely attend classes conduct business to do their meetings to school their kids well now the company doesn't seem to be keeping up with that index this shares slumped on tuesday after releasing slowing year-over-year growth in their third quarter earnings report let's digest this and talk about future growth resume cfo kelly steckelberg to unpack all of this kelly it's always hard when you see erosion in your share price i'm sure and i'm trying to steady the narrative to your investors right now what are you telling investors in terms of the growth trajectory which inevitably slows down as people perhaps come back to the office a little bit more well first of all just to remind everybody that we reported earnings for q3 of over a billion dollars which was 35 year-over-year growth and gave outlook for the full year of over 4 billion dollars which is over 50 percent year-over-year growth so we're really proud of everything we are we have accomplished and we are excited about the future especially about the future of hybrid work you know work is really transitioning it's no longer a place it's a space where people get their work done and zoom is really at the forefront of bringing teams together and keeping them connected and efficient and we are really making this transition from being a killer meetings app to a communications platform that is comprised of not only our meetings feature that everybody knows and loves but also zoom phone which is our cloud pbx solution zoom rooms which is a conference room solution which is really important and a key part of the strategy when you think forward to high wood hybrid work and then of course we have um products like zoom events which we just launched um 90 days ago as we look forward and consider that events are also going to be hybrid in the future i'm interested in you know how you continue to build an ongoing conversation with your investor base because to a large extent perhaps they got too over enthusiastic about where future growth could and you just spelt out i mean you beat in many ways the third quarter earnings expectations you're talking about this growth that is to 30 or 50 percent however did just this did investors just expect too much or was it also the fact that some of the m a that you wanted the inorganic growth couldn't come off for this time round but now you look for inner for your own organic growth you know i think that we experienced growth last year that was completely unprecedented and had never been seen before and the way that we talk about it internally to our teams and also to our investors as we know we really can't control the stock price what we can control is our execution and we focus on delivering happiness to our customers and our employees every single day we do that by innovating and creating the most reliable and intuitive products that support our customers needs and and that's the best that we can do every single day talk to us a little bit about contact center as a service the five nine deal that wasn't meant to be there was hope certainly from our own internal analysts and some analysts on the call that you know you will still pursue that as an avenue of growth and interested as to whether that is a merger story or whether that will be something that you look to enhance and build on internally and how you execute yeah so you know we were certainly um excited about the potential of the five nine acquisition and think really highly of that team and they remain a very important partner for us however video engagement center is a product that we actually announced at zootopia in november and we expect it to be generally available in the first half of next year and we're looking forward as a way to bring a really fully natively integrated product to our customer base and think that it absolutely will be a core part of our platform moving forward i'm interested as you know you look towards offering looking at conferences looking at new and different ways that you continue to spell growth what is it that most excites you going into 2022 what do you think is going to outperform where people are currently factoring in i think zoom events is going to be a really key important of conferences as you say as you know we're all excited to be back together in person however companies have seen just this tremendous efficiency and reach they've gained by having virtual events and so zoom events is going to be able to bring those two together and support them so that's really exciting and then also i'm just going to circle back to zoom rooms the conference room strategy in terms of how companies are going to be able to bring their teams back together in an inclusive way the conference is going to be front and center to that so we have features like smart gallery which we create this experience where you can see everybody's face on the screen even when there are many people in a room together and things like companion mode which allow you to interact with the meeting with things like chat and pulling so recreating the benefits that we've had all working remotely when we go back to a hybrid experience zoom cfo kelly stekelberg wish we had more time thank you for spending some with us we wish you a very happy holidays meanwhile coming up elizabeth holmes taking the stand we'll talk about the latest in the theronus trial as we learn more about the former ceo in her own words that's next this is bloomberg [Music] [Applause] the trial of elizabeth holmes it continues and now featuring holmes herself now the founder of the failed blood testing startup theronos once hailed as the next steve jobs is accused of multiple counts of conspiracy in fraud and faces up to 20 years in jail and as we are now finally hearing from the former ceo herself let's bring in bloomberg's own joel rosenblatt who brings us up to speed with it all and joel i mean you've been in the courtroom since the trial very much started this is almost coming to a climax to a certain extent how interesting was it hearing her you know take the stanford in her own defense well this was the big question whether or not she was gonna take the stand and when she when her attorney called her it was a big surprise it came late on a friday afternoon and she only spoke for an hour and nobody was ready for it so it was a big deal it was a big deal very exciting for everybody especially everyone who's been spending you know two and a half months in that courtroom waiting to see if she would do that how did she present herself of course this ends up becoming somewhat of a blame game between her and and sonny balawani of course many realizing they had an intimate relationship as well as a business relationship but uh what tone did it take she comes across as very relaxed and she started off nervous when she took off her mouth she looked nervous but she quickly settled in gone is the black kind of turtleneck and kind of steve jobs costume that people like to make fun of she's wearing conservative colors with a blazer and she comes across as a chief executive not a flashy silicon valley leader in this case almost more lawyerly just very calm calmly answering questions leading questions often by her lawyer and she's presenting herself to the jury into the world as somebody who was in charge who was flying very high and not aware of all the details that might have led to the charges that she faces just not aware of all the details that led to the criminal charges that she's fighting now okay so sort of almost claiming naivety or or too much busyness really to have a grapple on on the finer details that end up becoming so important the devil will be in the detail the detail that she perhaps didn't grasp and that will be in also exposing the cross-examination i imagine well that's right it's in in fact while i say that she's kind of not not aware of the details that's mostly true she did at one point admit to um a problem i mean she can't just on her testimony just ignore the charges she does have to address them and at one point she did admit that she did something wrong that she wishes she had done it differently which is to kind of lift the logos of pharmaceutical companies onto reports that she used to get you know that she said were endorsements of her technology in order to get investments so she's she's walking a fine line but as you point out the real test here is uh the cross-examination that's going to be the real test for her what she's doing right now is something she's familiar with she's pitching her company as i said addressing some of the charges the real test for her will be uh on the cross examination whichever which is the moment that we're all really waiting for um you alluded to it earlier it's not clear yet how much she's going to blame uh her former boyfriend and the theranos former c president sonny balwani of course this is something of deep interest to silicon valley but how global does this go you know i'll tell you it goes very it goes across the globe or at least certainly to europe uh and beyond because well first of all you have reporters from really papers across europe who are interested in it i think it speaks to the reason it's so interesting is is because you know a trial is not a debate it's a narrative it's theater and the question here is how far how how far can you lie in order to in order to get what you want and i think that's just a universal and global question that people want to know the answer to in this in this scenario and this case well thank you for bringing us some of that theater joel rosenblatt we thank you all important cross-examination coming up monday tuesday meanwhile coming up we use blockchain to help fight natural disasters and improve first responder coordination we're going to be talking to ava labs president john woo on how his company is partnering with deloitte to use the crypto tech to assist local and state federal responders [Music] this is bloomberg technology i'm caroline hyde let's get back to the financial markets bloomberg said ludlow keeping an eye on all things crypto today ed yeah i mean cryptocurrencies broadly have been under selling pressure for a few days right there's been a lot of chatter out there about about growing regulatory risks there's a fantastic story on the bloomberg about you know chartists basically looking to the technicals to try and find direction you can see we're softer across the board as we spill into thursday's session bitcoin lower hothering average 7000. i wanted to zero in on z cash though i've not really tracked this token in particular but it had an astonishing day wednesday the best performing uh crypts currency of those that bloomberg tracks and look at its performance year to date it's kind of gone under the radar we don't talk about it as much with this sort of modest 260 dollars per token value you can see it has performed well year to date not quite at the highs that it was at in may and it's interesting because it's very similar to bitcoin right it has a limited supply 21 million tokens it's got it's it's basically designed with privacy in mind but there was news on november 19th that the developers is going to move from a cryptocurrency to a proof of stake rather than proof of work you know i'll give myself some homework i don't really know the full extent of what that means i'll go away and find out but there's a lot of chatter out there about this kind of being supportive of this particular coin i also really want to briefly touch on coinbase there's always so many headlines about coinbase right all kinds of stuff you see we're actually softer by one and a half percent on wednesday there was some m a news there was news that kind of key democrats are taking interest in koi base they're asking difficult questions writing lessons to executive here's the one i'm looking at adidas or adidas to some people tweeting saying it's originals brand adidas originals has partnered with coinbase there's a tweet but they also say probably nothing and coinbase replies handshake emoji so bloomberg news has asked each of these respective companies to comment and explain what they're talking about they haven't replied but i'm sure this is something we'll find out more about this is where we've got to in the world of cryptocurrencies and traditional business it's definitely adidas though let's face it it is definitely adidas yeah well of course nike been looking into all things nfts as well ed ludlow we thank you so much meanwhile kathy wood is chimed in and says china is not an uninvestable the ark investment founder and cio exited most of her positions in chinese stocks earlier this year but says she sees a bit of an opening and she's waiting till the valuation dust settles spoken a bloomberg intelligence webinar with bloomberg analyst rebecca sin one of the reasons we built up our position in china in 2020 was because we saw china's response to the to the coronavirus crisis was much more responsible from a policy point of view both fiscal policy and monetary policy than many other countries around the world and we thought okay maybe china is going to become the new germany or switzerland known for its uh monetary discipline and fiscal discipline uh but what happened in november uh of that year uh was somewhat startling um the episode with jack ma and uh watching how um he and many other executives who had created incredibly uh uh rapidly growing and uh exciting companies uh they they basically um uh were told and and maybe there was some reason for it but you know uh you're you're not welcome there anymore uh you go off and do some charitable work or whatever whatever the message was and so that's what they're doing um we we began we became concerned about that while that kind of rhetoric and activity is taking place so you're right we pulled away very early out entirely out of our flagship not out of all of our specialized portfolios because in autonomous technology for example uh jd logistics jd dot com you know they have low margins very friendly from a capitalistic point of view and they're helping to push new goods and services into tier three and tier four cities which is great uh but we there was so much uncertainty created by one regulatory crackdown after another and after we didn't know where it was going to stop now we're seeing a little bit of an opening up um even with the online education we see okay well you can't tutor children after school but you can tutor professionals and so now there's some a little bit uh more give there uh but uh we we think the valuation of the chinese market has been hurt significantly by this and that uh the way the chinese market will have to grow and stocks will have to grow is if the underlying companies themselves grow blueberg intelligence analyst rebecca sin they're speaking with arcs kathy wood around all things about china now remember kathy whitaker is a big supporter of blockchain technology of certain exposure to crypto and blockchain was developed for use in soil decentralized currencies it's not just though crypto that benefits or indeed speculation that benefits avalab has partnered with deloitte to use open source blockchain technology to build software that will empower in fact first responders stay connected to streamline response to natural disasters and and emergency situations i want to bring in the president of avalabs john woo is our weekly crypto current segment and i mean for once here john we're able to really talk about the practical use case of the underlying technology that is the blockchain because in many ways it's become our favorite thing to talk about in terms of speculative assets but we're all waiting for adapt to work or indeed some sort of practical use case and you got one caroline thank you for having me good to see you again and yes this is a big moment um the use cases you have seen up to now primarily have been crypto native use cases whether it's decentralized finance or meme coins as we talked about earlier but this is one of the first times where a fortune 500 type company or a big four consulting firm has decided to build a solution the close as you go solution in this case for their end customers in this case government agencies this is a very big deal because deloitte has estimated that they can save the government 50 to 80 of the all-in costs and what it means for the actual end user is that poor victims in a disaster zone are able to get their grants literally days or maybe weeks as opposed to currently where they get it months and sometimes half a year this is a huge deal and if deloitte has trust in a blockchain like avalanche for security and have better workflow automation data management and collaboration in the thousands of parties that's required here that is basically the beginning of a big trend and utility and adoption is really happening now on public blockchains in many ways the way in which you sort of raise the profile of avalanche visa via the likes of ethereum blockchain and the like is is smart contract enabled application but that much faster that much low cost it's interesting you also click you know raise the focus of eco-friendly and i want to understand how you're presenting yourself as eco-friendly at the moment generally when people think blockchains are energy consumption consuming um giants it's relating to uh proof-of-work and i think ed earlier talked about proof of work versus proof of stake those are usually related to right now bitcoin and ethereum most of the new blockchain companies are proof of stake it's more software-based less hardware and in ava labs or avalanche the blockchain's case basically we had an outside consultant do work and the energy that is used up is no different from 12 us households a year so it was minimal relatively speaking and on top of that ava labs has bought um credits in the um in the in the you know market in order to offset even little bit of energy that we end up leaving in terms of carbon footprint okay interesting let's talk about your token is it avax how you say it it has sure it's been doing very well and of course this deloitte deal helps it push up to sort of record prices does that matter to you how much does is that important in terms of bringing more people into the ecosystem wanting to contribute wanting to be part of it and and ensure that it continues to grow that is that is everything it's about adoption it's about utility and i think ed was talking about an earlier segment where the entire space has sold off because of fear of regulation but the bigger story is not just the sell-off in the entire asset class if you look underneath the hood there has been more dispersion in the last few months than ever before in these individual tokens the tokens and the companies and the projects are actually showing real utility usage either through individual adoption or in case of enterprises like we're talking about with deloitte transactions on the chain those are the ones that are actually doing better even with a down market those companies or those projects have actually had increasing value in their tokens so i am fortunate enough to sit in a seat where i talk to entrepreneurs developers investors and users i get a first-line view a first-hand view to where the usage is coming from and i see the correlation between usage and prices in these coins let's just go long term in where over labs wants to go avalanche in particular you know it's all about speed velocity to finalize transactions you're looking at d5 now you want to look at sort of the old school world of finance longer term paint the picture of of what ava labs does or is in five years time well in five years time um ava labs who's the team behind avalanche it's going to be one of the big players in the space it is the probably the fastest i think actually it is the fastest no doubt based on finality blockchain out there and in terms of growth on the chain it's the fastest in terms of usage number of wallets as well as transactions as well as value on the chain where we will be in five years is ushering this movement from just crypto native usage to more deloitte-like situations where traditional enterprises are now going to use public blockchains because it's better for collaborating better for instantaneous transfer of assets better for information sharing and safe companies even more money this is like software eating the world to the next level john woo our labs president we thank you for your time wishing you a happy holiday meanwhile coming up we are about to enter the biggest shopping season of the year talking holidays we'll talk about what to expect with my next guest who just became one of the country's richest self-made women thanks to her work in the world of retail and e-commerce this is bloomberg [Music] [Music] [Applause] now parents are busy i promise i understand that and we still have a responsibility to make sure that the default experience is as safe as possible but we think that empowering parents is an important part of the solution and you're going to be hearing us talk a lot more about not only parental controls but safety for young people online more broadly and i'm going to be talking about these issues with congress relatively soon head of instagram there speaking about his upcoming appearance before congress adam missouri was agreed to testify before a senate panel early next month it's part of a series of hearings into the effects of social media on children meta announced in september it would pause plans to create instagram for kids following a series of reports from the wall street journal outlining the app's impact on young users we've been talking a lot about well e-commerce retail ahead of the busy shopping period and also the influence of influencers within that let's get insights from someone who is knowing a thing or two or three about shopping trends she's just received a 300 million dollar investment from softbank the vision fund their entire company ltk which is a shopping app that allows creators influencers to let users essentially shop for what they post this latest investment now values her company when she started at just 23 and about 2 million making her one of the wealthiest self-made women joining us now is emma vensbox co-founder of ltk congratulations you and baxter like coming forward and building this business and educating people on the power of influences of blogging i mean first and foremost did you expect to get here i'm so thrilled that we did we've always been the advocate of the creator and i'm a creator myself and i you know growing up i just wanted to be able to make money online as a shopping blogger and the fact that we've been able to do that for me and my friends and for hundreds of thousands of women worldwide is a really incredible moment and a you know an opportunity truly of a lifetime and hopefully of a generation used to be known as reward style like to know that's where the ltk comes from largest global influencer marketing platform what exactly does that mean amber exactly well we pioneered a new industry we started really working on this concept back in 2010 it started as a b2b platform so we helped creators by in providing them with a business enablement platform to monetize their fashion blogs and then we expanded to offer a brand platform as well to help them connect with creators who could help them to sell more things to more people and then in 2017 we launched the like to know it shopping app and that was our first really platform for consumers to be able to go shopping from creators or creator guided shopping and then we um just this summer we moved to just go by our common name our acronym ltk and so as we're just hearing from the instagram head there and instagram has been trying to make a lot more shopping experiences within its app the same as tick tock how does that work alongside your business or is it cannibalization in some way what does ltk bring to the table there so while this industry has been pioneered over the last 10 years it's actually quite robust and so when you think of the social media platforms they're really part of the larger ecosystem and they're a really important part of that of that ecosystem and so they're a complement to a creator's business and that they give them new formats and new ways to attract um you know customers followers shoppers and so with each you know over the last 10 years we've seen a new platform usually about every two years so when we started it was with blogs and facebook and twitter and then of course expanded into instagram and then snap and now tick tock clubhouse um you know the ltk shops and so we continue to see these new platforms um they tend to attract different generations of creators and different types of creators and so they're really a propellant in this industry because obviously you need a way to connect with people and then some of those people want to go shopping and when they do our creators bring them back to the ltk storefronts and that's where the business happens okay interesting so if i was on an app social media app and i clicked through and i was watching but it wasn't ltks i would somehow be navigated back to yours when i followed through the purchasing process you could so we empower really shopping everywhere online for our creators wherever they're creating content and so we we think of it as you know on platform and off platform transactions and so a creator can use social media platforms in whatever way they're engineered so they can decide to link directly to a retailer site they can link back to their ltk creator shop and that shop hosts a number of links and then their entire shopping experience but really anywhere that you're engaging with creators they can actually bring shopping to you and make that turnkey and efficient of course you'll cost about 100 countries you've got a presence in the uk brazil france germany australia china south korea i mean what a bird's-eye perspective i know as someone originally british that they're very forward in terms of online experiences and online shopping how do we compare how does the us compare to the likes of south korea where are you really seeing significant growth well you know creator is a worldwide trend we just did a study where we found that even just domestically in the u.s about two-thirds of people were inspired by their purchases by seeing creators talk about or feature those products online and you're seeing that on a global level certainly we've seen that across asia across europe across australia and really it comes down to the way that we as society are engaging with people today ultimately we're spending hours and hours on our phone every day we're in aggregated content channels those channels are filled with content that our clients create and so what's interesting about this industry is you've actually chosen to follow the people that you're seeing in your feed and you might identify with them for example i'm a creator myself my followers might identify with me because of where i live or that i'm a professional or that i'm a mother or that i have pale skin or red hair or there's something about me that they identify with and i'm able to help them guide their purchases and so we're seeing that all around the world and cross category cross vertical cross platform we've got about a minute left also amber but how how do you ensure within that authenticity safety as well for the people that follow you and and the way in which you sort of absorb social media and want it to only be a positive thing very intentionally so the ltk platform is a place where our creators come to create their digital storefronts and that's really a really focused experience that's a hundred percent dedicated to creator guided shopping this is where our creators they hold no inventory they ship no boxes they do know customer care but they are making everything about their lives shoppable whether it's the wagon that they use to take their kids around the neighborhood or the dress they wore on tv today or the makeup that they like to use and the night cream every single thing that they're consuming they're making shoppable and we've engineered that platform in a way where it's not a social platform it's a shopping platform and so when you show up there the only thing that you can do is shop and we've seen now that about 8 million people every month are coming at a shop and actually in the last 12 months they've purchased three billion dollars worth of products from our creators and one of the most interesting things that i i've seen lately is actually the rise of direct to consumer you know about 20 of that 3 billion went straight to direct to consumer brands over the last 12 months which is really exciting for us as we think about that different type of creator amber great to have some time with you thank you for spending that ahead of the holidays amber vensbox co-founder of ltk coming up theaters still waiting for the first must-see film of the pandemic era we'll break down the numbers and what's hollywood hoping you'll go and watch this holiday season that's next listen bloomberg [Music] [Music] let's talk a little bit about hollywood now and it's big holiday push as people slowly return to the theaters let's head to la where i'm joined by blueberg's bryan eckhaus with more on what we can expect to see not only on the big screen but streaming at home as well so if i was going to go out what am i watching in the big screen right now well today tomorrow you can watch disney's in kanto a uh family animated film uh house of gucci comes out also tomorrow and returning champions uh ghostbusters after life and eternals came out early november and it's still in theaters now always good to talk about house of gucci when i think the the whole film is based on a book written by one of our own journalists so i'm desperate to go and see that in terms of streaming i mean i'm seeing and hearing so much buzz surrounding will smith and and king richard how is that going in terms of because they've got a dual sort of release right it does a dual release it's really well reviewed by critics uh it's in theaters as you said it's also on hbo max and we've seen so far this year that films that have that simultaneous release tend to see muted uh box offices did okay this weekend but it was nowhere near the debut of uh ghostbusters which had only iran in cinemas i see and there is the new gq what is it sexiest man in 2021 i don't know why i know these things meanwhile talk to us about some of the documentaries i've been recently trying to look at all the best documentaries in netflix i keep on finding various lift lists of them there's going to be a couple more right to be consuming there are um tomorrow is the third yeah tomorrow thursday's the debut of the new beagles documentary it's three episodes over three nights uh that's been years in the making peter jackson the celebrated director is behind it and it gives viewers a chance to sort of revisit the last few days of the beatles the idea has been that things were fraught between them toward the end apparently this documentary shows that things may have been a little lighter there'd been more perhaps friendliness and laughter than we may have thought from the original documentary that came out after they broke up so what are you going to be watching brian i'll be watching the disney uh disney plus version of the beatles tomorrow night okay i'll i'll try and tune into it too if i can put the kids to bed on time brian eckhaus great to have some time with you thank you for leading us all up to well a busy time of consuming whether you're watching the football whether you're dining out on food whether you're watching some of these new lineups as it comes to the world of streaming and the theaters meanwhile do remember bloomberg technology will be taking a couple of days off go celebrate enjoy your thanksgiving here in the united states but do make sure you tune in on monday when we'll be bringing you a special extra episode of bloomberg studio 1.0 with alphabet ceo sundar pichai you do not want to miss it meanwhile from new york wishing you some very happy turkey feasting and indeed a bit of a relax outside of the markets unless of course your trading crypto which never sleeps this is caroline hyde in new york this is bloomberg [Music] [Music] you

Channel: Bloomberg Technology

Views: 27,264

Keywords: Bloomberg

Id: CMeA1fAUkX8

Length: 45min 42sec (2742 seconds)

Published: Thu Nov 25 2021