>> THIS IS "BLOOMBERG
TECHNOLOGY." CAROLINE: I AM CAROLINE HYDE.
ED: I AM ED LUDLOW. CAROLINE:
FACING ITS WORST START OF THE YEAR IN CHINA SINCE THE COVID
PANDEMIC IS A NEW REPORT SHOWS SALES FELL BY 19% IN THE FIRST
QUARTER FOR APPLE. CAROLINE: CONSIDERING $95 BILLION AID
PACKAGE THAT COULD LEAD TO A NATIONWIDE BAN ON TIKTOK.
CAROLINE: WE PUSH I DID HAS THE LEARNINGS
-- EARNINGS CAREER FOCUS ON DEVELOPING SHARES ALREADY
SUFFERING THEIR LONGEST DRESSES 2022.
THAT IN SO MUCH MORE THIS HOUR. WE SIT WITH MUCH ANTICIPATION
OF THE EARNINGS TO COME, SOME RISK APPETITE TODAY.
MAYBE THE BAD NEWS IS GOOD NEWS. SOME OF THE BUSINESS ACTIVITY
COOL ENOUGH MORE THAN THE MARKET ANTICIPATED MEANS WE
DECIDE TO GO INTO EQUITIES AS WE THINK THE FEDERAL RESERVE
MAYBE HAS MORE SPACE TO BE CUTTING IN THE SECOND HALF OF
THE. NASDAQ CURRENTLY UP 1.5%. TWO YEAR YIELD, 69 MILLION
DOLLARS WITH, RECORD AMOUNT COMING TO THE MARKET YET YIELDS
FALLING TODAY AS MONEY MOVE INTO SOME OF THE HAVENS, 4.93%.
EQUITIES RALLYING ON THIS PARTICULAR DAY.
STOXX 600 IN EUROPE HAVING A STELLAR RUN ON THE MOMENT, OF A
PERCENTAGE POINT. -- UP A PERCENTAGE POINT. WE HAVE A LOOK OVERALL AT MONEY
MOVING IN TO BOTH RISK ASSET CLASSES AND BITCOIN. WELL OFF THE HIGHS BUT STILL
MONEY COMING IN DESPITE A RELATIVELY STRONG DOLLAR. ED:
EARNINGS SENT INDIVIDUAL TECHNICIAN, TESLA GETTING A
BOOST. WE WILL GET READY TO PLAY TESLA BINGO.
TUNE IN AT THE END OF THE SHOW TO FIND OUT WHAT I'M TALKING
ABOUT. BLOOMBERG, NAME A LOT OF PEOPLE
WATCHING, A BIG JUMP IN THE SHARES.
ADOBE, THE ONE-YEAR ANNIVERSARY SINCE FIREFLY WAS RELEASED.
BIG QUESTIONS ABOUT PARTICULARLY TEXT TO VIDEO.
WE HAVE AN INTERVIEW WITH AN EXECUTIVE. APPLE IS INTERESTING.
NOW HIGHER IN THE SESSION. WE OPENED LOWER.
BASICALLY, TRADING AT THE SAME LEVEL ON APPLE WE WERE ONE YEAR
AGO. IT HAS BEEN A DIFFICULT START
TO THE YEAR. CONCERNS PRINCIPALLY ABOUT
CHINA, THIRD-PARTY DATA, CAP REPORT RESEARCH SHOWS IPHONE
SALES ARE DOWN 19%. MORE INTERESTING PERHAPS IS THE
OTHER DATA OUTSIDE OF APPLE SHOWING THOMISTIC HANDSET
MAKERS GAINING MARKET SHARE -- DOMESTIC HANDSET MAKERS GAINING
MARKET SHARE. APPLE ON WITH HUAWEI.
THE DATA DOESN'T SEEM TO BE WORRYING ANYONE RIGHT NOW.
BIG PICTURE AHEAD OF EARNINGS LATER ON NEXT WEEK, APPLE IN
FOCUS. LET'S TALK TO MARK. WE STRESSED THIRD-PARTY DATA.
IT IS NOT APPLE TELLING US THIS BUT THERE IS A BIT OF CONCERN
CHINA IS THE KEY BATTLEGROUND AND THE IPHONE IS LOSING GROUND.
>> THIS IS EXACTLY WHAT WALL STREET AND INVESTORS HAVE BEEN
BRACING FOR, ANOTHER BIG DECLINE IN CHINA.
APPLE HAD ITS BIGGEST DECLINE IN A COUPLE OF YEARS LAST
QUARTER RELATED TO OVERALL SALES AND NOW IT LOOKS LIKE
YOU'RE GOING TO SEE ANOTHER DECLINE IN CHINA GIVEN THIS
DATA FROM COUNTERPOINT RESEARCH. AS I TYPICALLY SAY, THESE DATA
POINTS ARE TYPICALLY NOT EXACTLY ON THE MONEY BUT
THEY'RE USUALLY DIRECTIONALLY CORRECT.
IF THEY ARE TELLING US IPHONE SALES AND CHINA ARE DOWN BY 15, I WOULD BELIEVE -- BY 1/5, I
WOULD BELIEVE. IN ALL LIKELIHOOD, DOWN OF THE
OVERALL PICTURE OF CHINA. WHY'S THAT INTERESTING?
BECAUSE EVEN THOUGH CHINA HAD ABOUT A $2 BILLION DECLINE IN
THE PRIOR QUARTER, TIM COOK ON THE EARNINGS CALL SAID IT IS
NOT BECAUSE OF THE IPHONE BUT BECAUSE OF APPLE'S OTHER
PRODUCTS THEY SELL IN CHINA. THIS TIME IT IS LIKELY BECAUSE
THE IPHONE IF THESE NUMBERS ARE TO BE BELIEVED. CAROLINE:
LET'S TALK ABOUT OTHER PRODUCTS. WE KIND OF HAVE SIGNALING ON
THIS BEFORE, THIRD-PARTY DATA GIVING US A SIMILAR PICTURE.
WHAT IS NEW IS A SEVEN WE HAVE A NEW EVENT AND IT IS RUN THE
NEW IPADS. >> AS I HAVE BEEN SAYING ON
HERE AND THE LAST SEVERAL WEEKS, APPLE IS SET TO LAUNCH
ITS BIGGEST REVAMP TO THE IPAD IN OVER FIVE YEARS.
GOING TO SEE NEW VERSIONS OF THE IPAD AIR INTRODUCED ON MAY
7. THEY WILL PLAY A VIDEO ON THEIR
WEBSITE. THEY'RE TRYING SOMETHING NEW,
VIDEO START TIME OF 7:00 P.M. VERSUS THE USUAL 10:00 A.M.
AND ANNOUNCING THIS VIDEO WELL IN ADVANCE.
THEY HAVE BEEN TRYING DIFFERENT THINGS LATELY.
THEIR USUAL CADENCE IS TO ANNOUNCE THING SEVEN DAYS IN
ADVANCE, SO NOW WE ARE GETTING A FULL TWO WEEKS, WHICH IS
QUITE INTERESTING. MAYBE THEY WANT MORE MOMENTUM.
TRYING TO SEE FOR THE SMALLER SCALE LUNCHES IF MORE NOTICE
BRINGS IN MORE PEOPLE. THIS IS SOMETHING TO LOOK OUT
FOR. DO IPAD PRO AND IPAD AIR, NEW
MAGIC KEYWORDS ALL COMING ABOUT ONE MONTH BEFORE THEY ANNOUNCED
THE NEW AI INITIATIVES AT THE WORLDWIDE DEVELOPERS CONFERENCE
IN EARLY JUNE. THIS WILL BE SIGNIFICANT IN THE
HOPE IF YOU ARE ON WALL STREET OR A SHAREHOLDER OF THE COMPANY
IS THAT THIS WILL BOOST IPAD CELLS WHICH HAVE BEEN DOWN
QUITE CONSIDERABLY THE LAST SEVERAL QUARTERS DUE TO A LACK
OF ANY UPDATES ACROSS 2023. CAROLINE:
AND THEREIN LIES A LOT OF THE ISSUE, A LACK OF UPDATE. MARK, I TELLING US IT FIRST.
MEANWHILE, LET'S CONTINUE THE CONVERSATION. AYAKO YOSHIOKA OF WEALTH
ENHANCEMENT GROUP IN THE HOUSE. WHEN YOU'RE LOOKING AT APPLE
AND HAVE SEEN SOME OF THE WEAKNESS OF THE WORRIES ABOUT
PRODUCT UPDATES, ABOUT PERHAPS BEHIND THE CURVE WHEN IT COMES
TO AI, IS THERE'S NO SUCH A SOLID NAME YOU CANNOT AVOID BUT
TO REMAIN ALLOCATED TO IT, WOULD YOU START TO TAKE SOME
RISK OFF? >> RAGE QUESTION.
WHEN WE LOOK AT APPLE, IT IS A GREAT COMPANY.
THERE'S SO MUCH CASH ON THEIR BALANCE SHEET.
THAT ALLOWS THEM TO BUY BACK A LOT OF STOCK.
IT IS A BIG POSITION WITHIN THE S&P 500 INDEX SO IT IS
DIFFICULT NOT TO OWN IT AND YET WE START TO SEE SOME OF THESE
ISSUES WITH APPLE IN TERMS OF INNOVATION AND THE BEING ABLE
TO BRING NEW PRODUCTS THAT CAN CONTINUE TO GROW AT THE PACE
THEY HAVE BEEN GROWING OVER THE LAST SEVERAL YEARS. CAROLINE:
I THINK THIS IS SOME OF THE TENSION WE ARE SEEING ACROSS
THE SO-CALLED MAGNIFICENT SEVEN. WHEN WE ARE WORRIED ABOUT TESLA
AND APPLE WHICH IN MANY WAYS HAVE SIMILAR ISSUES.
CHINA WEAKNESS, COMPETITION FROM CHINA, WORRIES ABOUT LACK
OF AN UPDATE FROM OUR PRODUCT. IS IT MORE YET TO LOOK AT
VALUATIONS RATHER THAN TRYING TO SEE A NARRATIVE AS TO WHEN
YOU GET THE NEXT PRODUCT? >> I THINK IT IS BOTH VALUATION
AND FUTURE GROWTH. BOTH APPLE AND TESLA ARE
SUFFERING FROM THE ISSUES THAT YOU TALKED ABOUT AND THAT IS
DAMPENING THEIR OVERALL GROWTH GOING FORWARD.
VALUATION FOR THAT LOWER GROWTH IS A LITTLE BIT HIGHER THAN
EVERYBODY WOULD LIKE TO PAY. ED: IF THE MEGA CAPS DON'T MEET,
WHAT HAPPENS? >> I THINK THERE COULD BE A
LITTLE BIT OF ANOTHER SORT OF SELLOFF IN THE MARKET.
WE SAW IT LAST WEEK AND A HALF, EVER SINCE THE INFLATION PRINT.
I THINK WE DO NEED TO SEE A LOT OF THESE LARGER NAMES,
MICROSOFT, AMAZON, GOOGLE, META. THEY NEED TO COME OUT AND SHOW
US THEY CONTINUE TO GROW AT THE PACE THEY CAN GROW AND SHOW
THAT FREE CASH FLOW GROWTH SO PEOPLE CAN CONTINUE TO RELY ON
THEM FOR THAT QUALITY GROWTH. ED:
DO YOU GET THE SENSE, OK, THIS IS THE QUARTER WHERE WE LOOK
PAST THE AI HYPE AND START AGAIN TO LOOK AT FUNDAMENTALS?
DID YOU HAVE EARNINGS GROWTH? HOW IS YOUR FREE CASH FLOW?
TRADITIONAL BORING THINGS LIKE THAT? >> I THINK IT WILL BE A
COMBINATION OF BOTH. IN TERMS OF YOU HAVE TO PRODUCE
THOSE NUMBERS COME THIS FUNDAMENTALS ARE GOING TO
MATTER, BUT EVERYBODY WANTS TO LOOK AT THE FUTURE AND SAY,
WELL, CAN YOU CONTINUE TO PRODUCE THOSE QUALITY NUMBERS
THAT WE HAVE SEEN? SO AI CONTINUES TO BE A
TAILWIND. EVERYBODY WANTS TO SEE PRODUCTION OUT OF IT.
AND FOR THE CONTINUANCE OF THAT REVENUE AND EARNINGS GROWTH.
CAROLINE: WHEN YOU ARE SEEING SUCH A
RUN-UP IN BIG TECH OF LATE COME HOW MUCH ARE YOU THINKING ABOUT
THE MACRO, THINKING ABOUT THE DATA WE GOT TODAY? >> I THINK AMERICA ALWAYS
CONTRIBUTES TO THE OVERALL MARKET NARRATIVE -- I THINK THE
MACRO ALWAYS CONTRIBUTES TO THE OVERALL MARKET NARRATIVE.
THEY ARE TECHNICALLY THE LONG-DURATION ASSETS THAT
EVERYBODY LIKES TO TALK ABOUT AND ARE MOST IMPACTED BY HIGHER
INTEREST RATES. THEY ARE A CRUCIAL PART OF HOW
WE LOOK AT THE OVERALL MACRO AS WELL AS THE INDIVIDUAL STOCKS.
ED: LET'S TO A CASE STUDY WHICH IS
SPOTIFY. IT IS AN INTERESTING PLATFORM.
WHAT DOES IT TELL YOU? >> SPOTIFY HAS BEEN ON QUITE A
TEAR THE LAST YEAR. THEY HAVE REALLY FOCUSED ON
MANAGING COSTS. AS EVERYBODY HAS SEEN WITH THE
RESULTS, THOSE GROSS MARGIN NUMBERS WERE REALLY EYE-POPPING.
SEEING THE GUIDANCE FOR GROSS MARGIN TO CONTINUE HIGHER AT
28% NEXT QUARTER IS DEFINITELY SOMETHING THAT WE CAN CONTINUE
TO SEE WHAT SPOTIFY, REALLY, GENERATING THAT REVENUE AND THE
EARNINGS GROWTH AND MANAGING THE COSTS WHILE THEY DO THAT.
ED: THE STOCK ON TRACK FOR ITS BIGGEST JUMP SINCE OCTOBER 2019.
AYAKO YOSHIOKA, THANK YOU. COMING UP, WE TALK SPOTIFY,
SHARES JUMPING MOST AS I SAID SINCE OCTOBER 2019.
WE ARE GOING TO GO VERY DETAILED ON THE REPORT NEXT.
THIS IS "BLOOMBERG." ♪ ED: LET'S GET BACK TO SPOTIFY
EARNINGS AFTER THE AUDIO GIANT SWUNG TO PROFIT IN THE FIRST
QUARTER. SUBSCRIBER GROWTH.
WHAT WERE BEHIND THOSE THINGS? >> OVER THE PAST YEAR, SPOTIFY
HAS REALLY CHANGED ITS BUSINESS. ON THE EARNINGS CALL, THE CEO
CALLED IT THE NEW SPOTIFY. THEY REDUCED COSTS
SIGNIFICANTLY, PARTICULARLY IN THEIR PODCAST BUSINESS.
THEY REDUCED COSTS AND VIRTUALLY DID HAVE TO REDUCE
THEIR HEADCOUNT QUITE A BIT BUT WE ARE SEEING THAT PLAY OUT IN
THE FIRST QUARTER EARNINGS FOR SURE. CAROLINE: PHENOMENAL MOVE IN SHARES,
ACTUALLY, YET STILL SOME OF THE FORECASTS MAYBE BEHIND WHAT THE
MARKET HAD ANTICIPATED. THIS IS A FEEL-GOOD FACTOR
AROUND PROFITABILITY? >> I THINK THE INVESTORS ARE
THRILLED TO SEE THEY'RE STILL GROWING THEIR USER BASE AND
SUBSCRIBERS AT PROFITABILITY. THIS IS ALL HAPPENING WHILE
THEY REDUCED THE NUMBER OF PEOPLE WORKING FOR THEM AS WELL
AS INCREASING PRICES AROUND THE WORLD WITH MORE PRICE INCREASES
TO COME. I THINK INVESTORS ARE FEELING
THERE'S A LOT OF OPPORTUNITY TO SQUEEZE MORE REVENUE OUT OF
THEIR USERS. ED: IN THE CURRENT PERIOD WHICH
TAYLOR SWIFT HAPPENED. I LISTENED TO THE ENTIRE THING
ON FRIDAY. DID THEY TALK ABOUT THAT? >> THEY DID NOT TALK ABOUT
TAYLOR SWIFT, THOUGH I WISH. CAROLINE:
MORE PERHAPS WHAT THEY WERE TALKING ABOUT, FOCUS ON AUDIO
FROM THE BOOKS PERSPECTIVE. SURE, THEY'VE BEEN PULLING BACK
IN PODCASTING BUT CAP THERE HEAVY HITTERS LIKE JOE ROGAN.
WHAT ABOUT THE ABILITY TO CHARGE MORE FOR AUDIOBOOKS IN
FULL, THAT SEEMS TO BE WORKING. >> YES.
WE HAVE REPORTED THIS LAST WEEK AND DANIEL MENTIONED IT TODAY
THAT BASICALLY, THEY INTRODUCED 15 HOURS OF AUDIOBOOK LISTENING
TO SUBSCRIBERS IN CERTAIN PARTS OF THE WORLD.
OF THOSE USERS WHO HAVE THE ABILITY TO PLAY AUDIOBOOKS, 25%
HAVE TAKEN ADVANTAGE OF THAT OFFERING.
WHAT THEY ARE SEEING IS ADOPTION.
WHAT THEY CAN DO WITH THAT IS THEY COULD CHARGE MORE,
BREAKOUT AUDIOBOOKS ONLY. I THINK IT IS GIVING THEM A LOT
OF ROOM TO POTENTIALLY PLAY DIFFERENT SUBSCRIPTION TIERS,
GIVING THE FLEXIBILITY. CAROLINE:
INVESTORS LOVE OPPORTUNITY. THANK YOU FOR TALKING ICE
THROUGH WHAT IS A KEY MOVER TODAY.
STICKING WITH EARNINGS AND THOSE COMPANIES IN EUROPE,
S.A.P. SAYS ITS CURRENT BACKLOG FASTEST GROWTH ON RECORD.
SEEKING TO MIGRATE CUSTOMERS FROM LEGACY ON PREMISE SOFTWARE
TO THE CLOUD WHERE IT IS TO OFFER BUSINESS AI SERVICES TO
SWEETEN THE DEAL. WE SPOKE TO THE CFO A LITTLE
EARLIER TODAY. >> THE ADMIN OF AI HAS CLEARLY
PROPELLED THE STORY OF THE TRANSFORMATION TO THE CLOUD TO
MOVE OUR CUSTOMERS FROM THEIR ON PREMISE INSTALLATIONS TO
CLOUD COVER RESULTING IN AN UPTICK ON A CONSTANT CURRENCY
BASIS. ALL THAT IS DRIVEN BY THE CORE
OFFERING WE HAVE IN THE CLOUD. ED: TIME FOR TALKING TECH.
ELON MUSK SOCIAL NETWORK HIT WITH AN INJUNCTION BY AN
AUSTRALIAN COURT TO REMOVE FOOTAGE OF A RECENT TERRORIST
ATTACK. LAST NIGHT AND SYDNEY, THE
FEDERAL COURT FOR AUSTRALIA ORDERED X TO HIDE ALL
RECORDINGS OF THE ATTACK UNTIL WEDNESDAY.
THE COURT WILL CONVENE FOR A SECOND HEARING AT A LATER DATE
TO DETERMINE THE VALIDITY OF A REMOVAL NOTICE BY THE COUNTRY'S
E-SAFETY COMMISSIONER. ESML -- ASML WEIGHING EXPANSION.
THE COMPANY SAID IT SIGNED A LETTER OF INTENT IN THE FINAL
DECISION IS SUBJECT TO IRONING OUT A FEW CRUCIAL POINTS.
PERPLEXITY AI HAS RAISED ABOUT 62 $3 MILLION IN A NEW FUNDING
ROUND THAT ICE THE COMPANY AT MORE THAN $1 BILLION.
PERPLEXITY OFFERS AN AI CHATBOT THAT SUMMARIZES SEARCH RESULTS,
LIST CITATIONS FOR ANSWERS, AND HELPS USERS REFINE THEIR
QUERIES TO GET THE BEST RESPONSES.
THE FINANCING DOUBLES THE VALUATION FROM JUST THREE
MONTHS AGO. CAROLINE: AI IS STILL SO HOT.
LET'S TALK ABOUT ADOBE. IT IS BRINGING MORE GENERATIVE
AI TOOLS TO PHOTOSHOP. JOINING US NOW FROM LONDON,
DAVID WADHWANI. WELCOME. HOW IS THIS INCENTIVIZING
CLIENTS TO PAY MORE FOR ADOBE? HOW IS GENERATIVE AI BRINGING
ABOUT A REVENUE INCREASE FOR THE BUSINESS? >> I THINK WE HAVE TO PUT
EVERYTHING WE'RE DOING WITH GENERATIVE AI IN THE CONTEXT OF
WHAT WE HAVE BEEN DOING THE LAST YEAR.
WE FIRST INTRODUCED GENERATIVE AIA YEAR AGO.
IN THAT PERIOD OF TIME, WE HAVE ADDED IMAGING MODEL, ANOTHER
VERY IMPORTANT FORMAT FOR CREATIVE PROFESSIONALS.
WE HAVE ENABLED CUSTOMIZATION OF THAT CONTENT FOR THEIR
SPECIFIC 10 I NEEDS -- DESIGN NEEDS. WE HAVE EXPOSE THAT IN
PHOTOSHOP AND ACCRETIVE CLOUD APPLICATIONS, EXPOSED IT IN
ADOBE EXPRESS FOR MARKETERS AND CREATIVE PROFESSIONALS AND
ENTREPRENEURS. WE HAVE EXPOSED IT AS A BROAD
BASE OF AUTOMATION WORKFLOWS. WHAT THIS HAS DONE IS IT
SUPERCHARGED CONTENT CREATION. YOU CAN PRODUCE CONTENT MUCH
MORE EFFECTIVELY AND QUICKLY. IF YOUR TREND AUTOMATE
WORKFLOW, YOU CAN DO THAT WITH YOUR EXISTING ENVIRONMENTS YOU
HAVE. IF YOU ARE A MARKETER, YOU CAN
REACT MORE QUICKLY TO ANYTHING HAPPENING ON SOCIAL.
IT HAS EMPOWERED BUSINESSES TO OPERATE AT ANOTHER LEVEL OF
SCALE. CAROLINE: I WANT TO TALK ABOUT SCALE AND
THE DIFFICULTY ULTIMATELY OF FEEDING DATA IN TO FOUNDATIONAL
MODELS. YOU HAVE BEEN UNVEILING THE NEW
FOUNDATION A MODEL AND I'M INTERESTED AS TO WHAT IS GOING
IN BECAUSE WHAT SET A PART OF ADOBE IS YOU ARE SAFER BECAUSE
YOU ARE BUILDING BASICALLY UPON YOUR OWN DATA, YOUR OWN IMAGES
THAT YOU OWN STOP YOUR STOCK. BUT THERE ARE RECORDINGS THAT
ULTIMATELY, YOUR HAVING TO USE SYNTHETIC DATA WHICH IS
SOMETIMES USED FROM RIVAL AI IMAGE GENERATORS.
CAN YOU TELL US ABOUT HOW CLIENTS ARE RESPONDING TO WHAT
YOUR DATA IS BEING TRAINED ON RIGHT NOW? >> WE ARE WITHOUT A DOUBT THE
MOST RESPONSIBLE TRAINING MODEL IN THE MARKET.
WE HAVE BEEN VERY THERE THAT WE HAVE LICENSED RIGHTS FOR
EVERYTHING WE HAVE TRAINED ON. WE HAVE A PROCESS THAT WE
INTERNALLY CALL ART WHICH IS ABOUT ACCOUNTABILITY,
RESPONSIBILITY AND TRANSPARENCY. EVERYTHING WE GENERATE AT ANY
MODEL BEFORE IT SHIPS GOES THROUGH THIS PROCESS.
WE HAVE BASICALLY A MODERATION SYSTEM IN PLACE SO WE MAKE SURE
ANY CONTENT THAT COMES IN DOES NOT HAVE OR IS NOT ENCUMBERED
WITH ANY MISAPPROPRIATED IP RIGHTS.
CUSTOMERS HAVE BEEN VERY CLEAR WITH US THAT THERE IS A LOT OF
INTERESTING WORK GOING ON AROUND THE INDUSTRY AROUND AI
MODELS, BUT WHEN IT COMES TO TRUE PRODUCTION SYSTEMS, WE ARE
REALLY AT THE TOP IN TERMS OF THE ABILITY TO USE THIS TO
CREATE AND SHIP CONTENT THAT IS GENERATED WITH THESE MODELS. ED:
DAVID, THERE'S ONLY ONE SIGNAL QUESTION BEING DIRECTED AT
ADOBE RIGHT NOW WHICH IS, WHEN AND IN WHAT FORM WILL YOU HAVE
A TEXT TO VIDEO GENERATION PLATFORM AKIN TO SORA? >> I DON'T KNOW IF YOU HAD A
CHANCE TO SEE THE ANNOUNCEMENTS WE MADE LAST WEEK AT THE
NATIONAL AMERICAN BROADCASTERS VIDEO SERIES, WE ANNOUNCED AND
WE TALKED ABOUT HOW WE ARE -- GAVE A SNEAK OF OUR TEXT TO
VIDEO CAPABILITIES AS PART OF THAT. WE ALSO ANNOUNCED WE ARE WORKING WITH SORA, WORKING WITH
RUNWAY. AND TOGETHER, ALL OF THESE
CAPABILITIES ARE GOING TO BE EMBEDDED IN ALL OF OUR CREATIVE
APPLICATIONS. WHAT IS EXCITING ABOUT ALL THIS
TEXT TO VIDEO CAPABILITY IS THAT WE HAVE THE ABILITY NOW TO
LOOK AT THIS AND SAY, ALL OF THIS GENERATIVE CAPABILITIES IS
ANALOGOUS TO MORE CAMERAS IN THE WORLD.
THE MORE CONTENT CREATED, THE WAR CONTENT COMES IN OUR
SYSTEMS FOR EDITING. WE HAVE JUST BEEN CLEAR OUR
TECHNOLOGY FOR VIDEO, ARCHITECTURE AND THE RESEARCH
GOT INTO IT, IS SIMILAR TO WHAT YOU SEE ON SORA AND OTHERS AND
WE EXPECT TO HAVE OUR MODEL IN MARKET LATER THIS YEAR. ED:
THE STRATEGY IN PREMIER -- WHEN I WAS IN JOURNALISM SCHOOL, WE
TRAINED ON PREMIER. FULL CIRCLE. YOU'RE GOING USE THIRD-PARTY
MODELS. SO FAR, PHOTOSHOP HAS NOT HAD
THE EXTENSION OF THAT STRATEGY. EXPLAIN WHY AND WHAT YOU WILL
DO GOING FORWARD. >> WE'RE GOING TO EMBRACE ALL
MODELS. PHOTOSHOP, LATER THIS YEAR YOU
WILL SEE SUPPORT FOR ANY MODEL THAT CAN BE INTEGRATED INTO
PHOTOSHOP WILL BE INTEGRATED INTO PHOTOSHOP.
BUT WE ALSO RECOGNIZE EACH MODEL HAS ITS OWN PERSONALITY.
AT ANY GIVEN MOMENT, WHAT YOU GENERATE IN ONE MODEL VERSUS
ANOTHER, THERE MAY BE VARIED PREFERENCES.
THE ONE THING WE KNOW IS THAT FIREFLY IS GOING TO BE
SYNONYMOUS WITH THE BEST QUALITY OF CONTENT, WITH THE
BEST DETAIL OF CONTENT, AND WITH THE MOST CONTROLABILITY.
THAT MEANS WHATEVER WE CREATE WITH FIREFLY CAN GET MORE
DEEPLY EMBEDDED IN OUR TOOLS. WE JUST HAD AN ENORMOUS SET OF
ANNOUNCEMENTS IN TERMS OF DOZENS OF NEW CAPABILITIES.
AI GENERATION EMBEDDED IN OUR WORK AND THAT IS BECAUSE OF THE
WAY WE HAVE FIREFLY. WE EXPECT TO INTEGRATE. ED: DAVID WADHWANI, GREAT TO HAVE
YOU ON, WORKING ONE YEAR SINCE FIREFLY.
COMING UP, ALL EYES ARE ON TIKTOK, DIVEST OR BAN BILL.
THE FORMER CHIEF OF STAFF TO SENATOR AMY KLOBUCHAR WILL BE
JOINING US. GETTING CLOSER TO THE ONE YOUR
TIMELINE WHERE TIKTOK -- ONE YOUR TIMELINE WHERE TIKTOK WILL
FACE DIVEST OR BAN. LOOKING AT SHARES OF GENERAL
MOTORS. ONE OF THE MOVERS OF THE UPSIDE
TODAY, EARNINGS ACTUALLY LARGELY RELATING TO THE LEGACY
BUSINESS. TRUCK SALES DOING WELL.
INITIATIVES IN CHINA NOT DOING SO WELL. KEEP TRACKING GM.
BIDEN THIS IS "BLOOMBERG." ♪ ♪ ED: WELCOME BACK TO BLOOMBERG
TECHNOLOGY. CAROLINE: WE'VE GOT A LITTLE BIT OF MONEY
BACK INTO THE TECH SECTOR AFTER WHAT HAS BEEN HEATING UP OVER
THE LAST FEW TRADING DAYS. WE ARE ALL BRACING FOR THE
EARNINGS NARRATIVE THAT COMES OUT FAST FOR THE REST OF THE
WEEK AND SO FAR, SEEING A LITTLE BIT OF BUYING THE DIP
THAT WE SEEN IN SOME OF THE TECH NAMES FROM FRIDAY INTO
MONDAY, NOW TUESDAY. NASDAQ 100 HIGHER.
LOOKING AT TWO YEAR YIELD CURRENTLY DOWN BY ALMOST FOUR
BASIS POINTS AHEAD OF THAT AUCTION OF TWO-YEAR BONDS.
A RECORD HIGH, YOU'RE HAVING A GOOD DAY. A LOOK AT SOME OF THE
INDIVIDUAL MOVERS AS WE DO ANTICIPATE SOME GOOD EARNINGS
NARRATIVES. NVIDIA DOWN 10% FRIDAY BUT
MONDAY IT BOUGHT THE DEBT, TUESDAY THEY ARE BUYING THE DIP
AGAIN. MANAGING TO WHITTLE AWAY SOME
OF THOSE LOSSES THAT EXTENDED TO MORE THAN $200 BILLION WORTH
OF MARKET CAP LOST. YES, WE GET THE EARNINGS LATER BUT WE ALSO
ANTICIPATE STILL THE FOCUS ON ARTIFICIAL INTELLIGENCE.
THEY'VE GOT A SMALLER MODEL THAT THEY'VE ANNOUNCED TODAY,
BILLED BY MICROSOFT'S OWN AI RESEARCHERS WHICH YOU CAN USE
MORE ON YOUR ACTUAL DEVICES. OPEN-SOURCE MODEL AS WELL, SO
INTERESTING AS THEY CONTINUE TO BASICALLY CREATE WITH OPENAI.
INSTACART DOWN HEAVILY. THIS IS AS WE UNDERSTAND AMAZON
IS GOING TO BE GETTING INTO THE WORLD OF GROCERY DELIVERIES.
NOT ALWAYS WORK THAT WELL BEFORE, BUT THIS IS THE BREAD
AND BUTTER OF INSTACART. ANALYSTS SAY THERE IS ROOM
ENOUGH FOR MORE. >> AWAY FROM SOME OF THE
PRIVATE NAMES, THERE IS A PUBLIC MIND AND THAT IS TIKTOK
AND LEGISLATION INVOLVING TIKTOK WHICH WOULD BAR THE
SOCIAL PLATFORM FROM OPERATING IN THE U.S.
IF ITS CHINA-BASED OWNER DOESN'T SELL ITS STAKE WITHIN A
YEAR. KAILEY LEINZ IS HERE FROM D.C..
MY UNDERSTANDING TODAY IS THERE IS KIND OF A NEXT PROCEDURAL
STEP BEFORE THE MAIN EVENT. WHAT IS GOING TO HAPPEN? >> EXACTLY RIGHT, THIS IS THE
U.S. SENATE IN WHICH PROCEDURE DOES
LOOM LARGE. WHAT REALLY NEEDS TO HAPPEN TO
GET WE FINAL PASSAGE VOTE IS FIRST IT MUST ASK THE CLOSURE
VOTE BEGINNING AROUND ONE. TO BE A QUESTION OF HOW MUCH
DEBATE THERE IS OVER THIS PACKET WHICH DOES INCLUDE
TIKTOK DIVEST OR BAN BILL BUT PART OF A WIDER BILL WITH $45
MILLION IN AID FOR ALLIES. IN MIND THAT A VERY SIMILAR
BILL THAT DID NOT HAVE TIKTOK INCLUDED HAD OVER THE PAST THE
SENATE BY A VOTE OF 70-4 MONTHS AGO SO IT IS HIGHLY LIKELY THAT
THIS ULTIMATELY WILL PASS. IT REALLY IS JUST A QUESTION OF
WHEN AND HOW MUCH DISRUPTION WE COULD SEE FROM REPUBLICAN
SENATOR OR DEMOCRATIC SENATOR BERNIE SANDERS OF THE WAY THIS
GOES IS WHEN THE CLOSURE VOTE HAPPENS THEY WILL BE A MAXIMUM
OF 30 HOURS OF DEBATE AFTER THAT. THIS IS HIGHLY ENABLED --
HIGHLY LIKELY TO PASS THE SENATE.
WORTH KEEPING IN MIND THAT THEY ARE SUPPOSED TO BE ON RECESS
THIS WEEK SO IT IS LIKELY THAT A LOT OF SENATORS ARE EAGER TO
GET OUT OF WASHINGTON AND ACTUALLY TAKE THEIR TIME OFF IN
THEIR DISTRICTS. BUT THEN IT BECOMES A QUESTION
OF WHAT HAPPENS AFTER THIS IT'S PRESIDENT BIDEN'S SIGNATURE
BECAUSE NOT ONLY DOES THIS GIVE TIKTOK POTENTIALLY A YEAR TO
WORK ON THIS DIVESTITURE, BUT ALSO PLANS TO FIGHT THIS IN
COURT. THERE IS LIKELY TO BE A LONG
LEGAL BATTLE THAT WILL PLAY OUT AND A LOT OF HER MANY QUESTIONS
INCLUDING WHETHER OR NOT CHINA WOULD ACTUALLY SIGN OFF ON ANY
DEVASTING CHURCH OF BYTEDANCE AND THE TIKTOK U.S. OPERATIONS.
WHAT HAPPENS TO THE ALGORITHM? WHO WOULD BE ABLE TO BUY THIS
BUSINESS WITHOUT RUNNING INTO ANTITRUST ISSUES?
A LOT OF QUESTIONS WILL STILL REMAIN. CAROLINE:
AND I THEREFORE ASK A QUESTION ON THE SENTIMENT YOU ARE
HEARING FROM THE PEOPLE YOU SPEAK TO ON CAPITOL HILL ABOUT
WHAT THIS MEANS FOR CHINA AND THE U.S., WHAT THIS MEANS FOR
OTHER CHINESE BUSINESSES LOOKING TO EXPAND IN THE U.S.
KAILEY: THAT'S A VERY REAL CONCERN.
THOSE TWO ARE MORE OPPOSED TO THIS LEGISLATION, KEEPING IN
MIND THAT INITIALLY IT WAS A BILL THAT WAS THE TIKTOK NEED
TO BE THE BEST WITHIN SIX MONTHS.
YOU DID HAVE SOME CRITICS TALKING ABOUT HOW THAT TIMELINE
SEEMED UNREALISTIC. THERE WERE ALSO OTHERS CALLING
ATTENTION TO THE FACT THAT THIS IS A PIECE OF LEGISLATION
TARGETING A PRIVATE BUSINESS AND WHAT KIND OF PRECEDENT THAT
MAY SET IF THE U.S. IS SUDDENLY PURSUING THE KIND
OF POLICY. BY AND LARGE, IT DOES SEEM THAT
ESPECIALLY AMONG THE INTELLIGENT AND NATIONAL
SECURITY COMMUNITY THEY ARE MUCH MORE CONCERNED WITH THOSE
NATIONAL SECURITY ISSUES AROUND DATA PRIVACY, THE WAY IN WHICH
THE CHINESE GOVERNMENT MAY BE ABLE TO ACCESS USER DATA FROM
THE WELL OVER 100 MILLION AMERICANS ON THIS PLATFORM AND
ALSO ON THE PROPAGATION OF MIS OR DISINFORMATION THAT CAN BE
ON THIS PLATFORM IN THE RUN-UP TO THE ELECTION.
WORTH KEEPING IN MIND THAT THE TIMELINE THAT HAS BEEN SET
WHICH WOULD BE DIVESTITURE BETWEEN NINE MONTHS UP TO A
YEAR, THAT WILL TAKE US WELL BEYOND THE VOTE IN NOVEMBER.
CAROLINE: ARTICULATELY PUT. WE THANK YOU.
LET'S GET MORE OF A DEEP DIVE ON ALL OF THIS.
THE FORMER CHIEF OF STAFF TO SENATOR AMY KLOBUCHAR, AND NOW
A FELLOW AT THE HARVARD CENTER WHERE HE FOCUSES ON U.S.
TECH POLICY AND PARTICULARLY THINKING AROUND THOUGHTFUL AI
POLICY. DOUG, I AM INTERESTED AS TO THE
NUANCE HERE OF PROMOTING INNOVATION AT THE SAME TIME AS
PROMOTING SAFETY. WILL THIS ULTIMATELY SEE LESS
SOCIAL MEDIA COMPETITION HERE IN THE U.S., AND WHAT DOES THAT
MEAN FOR INNOVATION? DOUG: TIKTOK IS REALLY A UNIQUE CASE.
IT IS A CASE WHERE WE ARE LOOKING AT MOST POLICYMAKERS
WANT TO FOSTER COMPETITION. THEY ALSO RESPECT FIRST
AMENDMENT RIGHTS AND FREEDOM OF EXPRESSION.
BUT ON BOTH SIDES OF THE ISLE YOU'VE SEEN THE ARGUMENT MADE
THAT TIKTOK IS A UNIQUE NATIONAL AIR THE THREAT AND I
THINK WHEN THE INTELLIGENCE COMMUNITY COMES TOGETHER AND
MAKE THE CASE THAT THIS IS THE STUFF THAT NEEDS TO BE TAKEN
FOR FINANCIAL SECURITY, POLICYMAKERS BY AND LARGE WON'T
LISTEN. I ALSO THINK IT IS LIKELY THAT
THIS WILL HOLD UP IN THE COURTS FOR THAT VERY REASON, BUT TIME
WILL TELL. ED: LET'S GO WITH THE BAN SCENARIO.
YOU ARE A STUDENT OF U.S. TECHNOLOGY POLICY.
YOU HAVE A CD THAT SHOWS YOU UNDERSTAND THE ORGANS OF
GOVERNMENT. YOU EXPLAINED TO ME HOW YOU GET
150 MILLION AMERICANS TO NOT USE TIKTOK IN A 12 MONTH
TIMELINE. DOUG: THE WAY THAT THE LEGISLATION
WORKS, IT WOULDN'T BE AN IMMEDIATE ON AND OFF SWITCH.
YOU WOULD HAVE THE APP STORE BE UNABLE TO UPDATE THE APP AND
WHAT MAKES TIKTOK SO GREAT IS THAT IT IS SO USER-FRIENDLY.
SO OVERTIME IT WOULD DEGRADE AND PEOPLE WOULD MOVE TO OTHER
THINGS. I AGREE THAT THIS -- IF THERE
IS NO DIVESTITURE THEY WOULD BE A LARGE PUBLIC OUTCRY, BUT I
BELIEVE THE CONGRESS WOULD BE ABLE TO MAKE A CASE, OK, WE
GAVE A FULL YEAR OF NOTICE, WE MADE IT SO EVERYTHING WAS IN
PLACE FOR DEVASTING CHURCH AND WE TRIED TO MAKE THIS PAINFULLY
CLEAR. AND IF THERE ISN'T DIVESTITURE,
THE QUESTION IS WHY? THERE MAYBE ANTITRUST CONCERNS
BUT I BELIEVE ANTITRUST REGULATORS WOULD BE COGNIZANT
OF THE FACT THAT THIS IS FOR SALE AND REALLY BE CONDUCIVE TO
TRYING TO MAKE IT HAPPEN. IT SEEMS LIKELY THAT THE
CHINESE GOVERNMENT HAS SAID THEY ARE NOT GOING TO BE OK
WITH THIS AND THEY ARE GOING TO STAY IN THE WAY AND IF THE
CHINESE CONGRESS PARTIES STANDING IN THE WAY OF THE
INVESTITURE, THAT JUST MAKES THE CASE FOR THE LAW EVEN MORE
CLEAR AND CONGRESS REALLY WILL HAVE WIND AT ITS BACK IN TERMS
OF PUBLIC OPINION, BUT I AGREE IT COULD BE MESSY.
A LOT OF PEOPLE RELY ON TIKTOK FOR THEIR LIVELIHOOD AND IF
THERE IS NO THE INVESTITURE, THERE'S GOING TO BE A LOT OF
PAIN. BUT THERE ARE OTHER OPTIONS.
THIS IS SOMETHING THAT CONGRESS BELIEVES IS WORTH IT IN THE
LONG RUN EVEN THOUGH IT CAN BE DIFFICULT. CAROLINE:
TALK TO US ABOUT THE OTHER OPTIONS AND WHETHER THERE ARE
ENOUGH OF THEM. SOME OF THE SUDDEN QUESTION
MARKS ABOUT HOW SWIFTLY A POTENTIAL BAN OR DIVESTITURE
WOULD GO THROUGH IS BECAUSE FORMER PRESIDENT TRUMP STARTED
HIGHLIGHTING CONCERNS AROUND ME TA BECOMING MORE POWERFUL
WITHOUT TIKTOK. IS THAT A CONCERN FOR YOU?
DO YOU THINK THERE IS ENOUGH COMPETITION OUT THERE? DOUG: THAT IS A CONCERN.
WITH INSTAGRAM AND WITH FACEBOOK ,META REALLY DOES HAVE
A MAJOR POSITION HERE AND IT WOULD BE WELL-POISED TO
CONSOLIDATE, CONTROL IF TIKTOK IS TAKEN OFF THE TABLE.
THAT IS SOMETHING A LOT OF POLICYMAKERS DON'T WANT TO SEE. BUT HERE, THEY ARE WILLING TO
COUNT ON THAT POSSIBLY HAPPENING. THERE ARE ALSO OTHER
COMPETITORS IN THE SPACE. TIKTOK REALLY BECAME A
PHENOMENON BECAUSE THE ALGORITHM IS SO GOOD AND IT
USES WHAT THEY WANTED, THAT IS NOT A SECRET NOW.
THE ALGORITHM ITSELF IS SECRET BUT WHAT THEY ARE USING TO TRY
TO DRIVE ENGAGEMENT AND REALLY MAKE IT FUN AND EASY TO USE AND
VERY SOCIAL ARE THINGS THAT OTHER SOCIAL PLATFORMS CAN COPY
NOW. IF TIKTOK WERE NO LONGER A COMPETITOR, I THINK YOU WOULD
SEE OTHER APPS SPRING UP TO TRY TO DO THE SAME THING. ED:
LET'S GO BACK TO YOUR EXPERIENCE OF ADVISING A
SENATOR . PUT THAT HAT ON. WHAT IS THE BENEFIT TO A
LAWMAKER GOING STRONG THE ANTI-CHINA RATIONALE OF DOING
THIS IF THEIR CONSTITUENTS ARE SAYING I LOVE TIKTOK, I USE
TIKTOK. THEY HAVE TO THEN GO BACK AND
EXPLAIN WHY THEY ARE DOING THIS, ALL TOLD, I AN ELECTION
CYCLE. DOUG: YOU'RE RIGHT, THAT'S DIFFICULT.
THE REASON IT WORKS IS BECAUSE THE LEADING LAWMAKERS ALL HELD
HANDS AND SAID THIS IS SOMETHING WE WERE THE CARE
ABOUT. THE BILL CAME THROUGH THE HOUSE
COMMITTEE UNANIMOUSLY, WITH NONE OPPOSING.
THAT ALMOST NEVER HAPPENS AND IT SHOWS HOW BROAD THE SUPPORT
IS. THE VOTE IN THE HOUSE WAS VERY
STRONG. SOME MEMBERS ON THE FAR RIGHT
AND FAR LEFT OPPOSE, BUT MOST VOTED FOR IT.
YOU'RE GOING TO SEE A SIMILAR THING IN THE SENATE.
IF THERE'S ONE THING THAT LAWMAKERS LIKE IT IS POLITICAL
COVER AND WHEN THEY CAN ACTUALLY HOLD HANDS AND DO
SOMETHING TYPICAL ALTOGETHER, IT MAKES IT MUCH EASIER FOR
EACH ONE OF THEM TO GO BACK TO THE DISTRICTS AND SIMILAR TO
THEIR CONSTITUENTS AS SOMETHING THAT NEEDED TO BE DONE. ED:
FROM THE POLITICAL TO THE TECH POLICY, I THINK YOU ARE WELL
POISED TO EXPLAIN ALL OF THAT. COMING UP, APPLE SALES IN CHINA
SLIDE AS THE COUNTRY FACES ITS WORST START OF THE YEAR SINCE
COVID ACCORDING TO SOME THIRD PARTY DATA.
WE WILL TALK ABOUT THAT AGAIN NEXT. CAROLINE:
LET'S LOOK AT SHARES OF OTHER SOCIAL MEDIA COMPANIES.
TRUMP MEDIA AND TECHNOLOGY IN PARTICULAR.
WE UNDERSTAND THE BLANK CHECK DEAL HAS BROUGHT ANOTHER $1.3
BILLION IN STOCK AFTER MEETING CERTAIN TARGETS. THIS IS PART OF THE SPECIAL
PURPOSE ACQUISITION, BUT ULTIMATELY WITH THREE $6
MILLION IN ADDITIONAL SHARES, IT WOULD BRING THE TOTAL
POSITION TO THE 150 MILLION SHARES.
THIS IS BLOOMBERG TELEVISION. CHECK OUT THE QR CODE FOR ALL
THE DETAILS. THIS IS BLOOMBERG. ♪ LET'S GET BACK TO APPLE. IPHONE SALES FELL IN CHINA BY
19% DURING THE MARCH QUARTER, WORST PERFORMANCE IN THE MARKET
SINCE 2020 ACCORDING TO DATA FROM INDEPENDENT RESEARCH FIRM
COUNTERPOINT. BLOOMBERG INTELLIGENCE ANALYST
IS HERE TO GET HIS THESIS. I WOULD NOTE THAT THE STOCK
EVEN WITH THE PERCEIVED NEGATIVE HEADLINE ISN'T
REACTING NEGATIVELY. I GUESS MAYBE THAT IS BECAUSE
IT IS A SITUATION WE'VE BEEN AWARE OF FOR A LITTLE WHILE? >> ABSOLUTELY.
ONE OF THE NUMBERS YOU REMEMBER IS THEY CAME OUT A LITTLE WHILE
AGO, A COUPLE WEEKS AGO AND SAID THE GLOBAL SHIPMENTS ARE
DOWN ABOUT 10% FOR APPLE, SO I THINK A LOT OF WHAT WE SEE
TODAY IS ALREADY ACCOUNTED FOR IN THAT BIG NUMBER.
SO IT'S GOING TO BE FUN TO SEE WHAT HAPPENS NEXT WEEK WHEN
APPLE REPORTS AND OUR EYES ARE MOSTLY ON THE GUIDANCE FOR Q3
OR THE NEXT QUARTER MORE THAN WHAT IS HAPPENING IN THE
CURRENT QUARTER. CAROLINE: FOR THE CURRENT QUARTER, JUST
TO REMIND VIEWERS, WE ARE EXPECTING A 5% DECREASE IN
OVERALL REVENUES. THAT IS ACCORDING TO HER
EXPECTATIONS OVER A BLOOMBERG IN THE CONSOLIDATE ALL OF THE
ANALYSTS. BUT THE NEXT QUARTER AFTER THAT
THERE IS GOING TO BE GROWTH, 2% GROWTH. WHAT DRIVES THAT?
IS THIS THE NEW UNVEILING OF CERTAIN IPADS? >> THAT IS WHERE WE THINK MAYBE
THERE COULD BE A LITTLE BIT OF UNREST IN TERMS OF ESTIMATES
COMING DOWN. WHEN YOU LOOK AT ESTIMATES
RIGHT NOW, ESTIMATES FOR THE CURRENT QUARTER FOR THE RESULTS
THAT ARE COMING OUT NEXT WEEK, IPHONE REVENUE IS DOWN 11%. IF THE SHIPMENTS WERE DOWN 10%,
THEY COULD BE DOWN 8%, 9% OR SO BECAUSE WE ALL KNOW THAT THE
PROMAX MODEL IS DOING WELL AND HAS HIGHER PRICE.
FOR NEXT QUARTER, WE ARE LOOKING IN IPHONE REVENUE DOWN
JUST 2%. IF THE STUFF THAT IS HAPPENING
IN CHINA CONTINUES, THEN THAT NUMBER COULD GO DOWN.
I THINK THAT IS WHERE A LITTLE BIT OF THE RISK IS IN TERMS OF
FORWARD ESTIMATES FOR APPLE AND THAT IS GOING TO BE THE BIGGEST
THING THAT WE FOLLOW IS WHAT IS THE COMPANY GOING TO SAY ABOUT
THE RECEPTION OF THE PHONE FOR THE NEXT QUARTER? CAROLINE:
MAY2, LOVE THAT YOU PUSH US FORWARD TO THAT AND THE
EARNINGS AFTER THE BELL. WE APPRECIATE HIS EXPERTISE.
COMING UP, DISCUSSING WHAT TO EXPECT IN THE EARNINGS COMING
EVEN SOONER. AFTER THE BELL THIS AFTERNOON.
TESLA, OF COURSE. BRINGING BACK ELON BINGO. >> I'VE NEVER BEEN MORE EXCITED
TO LOOK AT SHARES. TEXAS INSTRUMENTS.
REMEMBER, THIS IS A CHIP-MAKER THAT DOES ALL THE KIND OF NOT
GLAMOROUS ANALOG SEMICONDUCTORS ACROSS ALL KINDS OF MARKETS AND
INDUSTRY. TEXAS INSTRUMENTS HIGHER BY
1.4, 1.5%, SOMETHING LIKE THAT. I DON'T KNOW, RESULTS, OK.
KIND OF A PREVIEW. ♪ ED: QUICK NEWS STORY, ELON MUSK'S
SOCIAL PLATFORM X IS LAUNCHING A TV APP PUSHING DEEPER INTO
VIDEO. HE DIDN'T CONFIRM A DATE FOR
THE RELEASE BUT SAID IT WOULD BE "COMING SOON TO MOST SMART
TV'S." THE COMPANY ALSO TALKED ABOUT
THE NEED TO CANCEL VIDEO FROM SMARTPHONES TO BIGGER TV
SCREENS , A MOVE THAT OF COURSE GOOGLE AND AMAZON HAVE MADE IN
RECENT MONTHS AS WELL. CAROLINE: LET'S TAKE ON ALL THINGS ELON
MUSK FOR A MOMENT. IT IS TIME FOR TESLA EARNINGS
BINGO CARD GAME. AND HERE WITH US FOR MORE, MAX,
DOING IT AGAIN. THEY DID IT IN THE PREVIOUS
EARNINGS AND THEY WERE ALL SORTS OF FUN THINGS THAT YOU
HAVE TO SHOUT BINGO WHETHER HE IS SAYING UNION, WHETHER HE
SANG TESLA IS AN AI COMPANY. THIS TIME I AM PRETTY SURE
ROBOTAXI IS GOING TO BE ONE OF THE KEYWORDS. >> ROBOTAXI IS THERE.
WE GOT A FEW OTHERS. WE'VE GOT HORSE UP THERE, I
BELIEVE IT IS IN REFERENCE TO THE FACT THAT ELON SAID OWNING
A NON-ROBOTAXI WOULD BE LIKE OWNING A HORSE IN 15 YEARS.
WE WILL SEE IF HE SAYS THAT ON THE EARNINGS CALL.
OBVIOUSLY THIS IS A HUGE EARNINGS DAY FOR TESLA, AND A
LOT OF DARK NEWS GOING ON THAT WE ARE TRYING TO KEEP IT LIGHT.
ED: I THINK WE SHOULD BE HONEST WITH THE AUDIENCE THAT YOU AND
I HAVE COME IN FOR A BIT OF STICK ON SOCIAL MEDIA ABOUT
SOME OF THE SELECTIONS WE MADE. THAT'S OK.
THIS IS SPECIFICS STATUS EARNINGS CALL.
YOU AND I HAVE BEEN TRYING TO GUESS THE LIKELY OUTCOME, THE
ROW. YOUR THINKING RIGHT NOW, PLEASE? MAX:
YOU GOT TO LOOK AT THE CENTRAL SQUARE, THE FREE SPACE PARADE
OF THE BINGO PLAYERS. I THINK THE M LINE GOING DOWN
PRETTY PROMISING. YOU GOT INTEREST RATES
OBVIOUSLY A HUGE ISSUE. IRAQ, ELON MUSK HAS MENTIONED
THE POSSIBILITY OF INTEGRATING IN TESLA CARS, REASONABLY
OPTIMISTIC, HE SAYS THAT ALL THE TIME.
AND OF COURSE ADVERTISING WHICH IS BEEN A BIG ISSUE FOR TESLA
BECAUSE THEY HAVE THESE DEMAND CHALLENGES, SO THAT IS MY PICK.
CAROLINE: YOUR PICK. I MEAN, I WANT TO KNOW HOW
CLOSE ANYONE CAME LAST TIME. IT WASN'T AN OUTRIGHT WIN ON
SOME OF THE CHOICES. WHICH ONES ARE YOU A LITTLE BIT
MORE CONCERNED MIGHT NOT COME UP? MAX:
WE GOT PRETTY CLOSE LAST TIME. IN A GOOD BINGO GAME, YOU WANT
A LITTLE BIT OF TENSION. I THINK FALLS TO THE WALL,
WHICH IS ELON MUSK'S PHRASE FOR HOW THEY ARE APPROACHING
ROBOTAXI, I WOULD BE SURPRISED IF THAT APPEARS DURING THIS
EARNINGS CALL, ALTHOUGH ELON MUSK LOVES THESE KIND OF
EXTREME THE HARD CORE METAPHORS THAT CONVEY JUST HOW HARD HE IS
PUSHING, SO YOU NEVER KNOW. ED: LET'S LOOK AT THE BINGO CARD A
FINAL TIME, BUT THERE IS A SERIOUS POINT TO THIS, THAT
ACTUALLY INVESTORS HAD A LOT OF QUESTIONS AND THERE IS A LOT OF
UNKNOWN. YOU AND I TRIED TO GO OVER THIS
ON THE PODCAST THIS AFTERNOON. ROBOTAXI IS AT THE HEART OF IT.
I GET THE SENSE THAT MUSK HAS BEEN BUSY FOR A FEW MONTHS.
HE HAS COME BACK IN TESLA AND DECIDED TO FOCUS, HAVING
REALIZED THAT THINGS WERE NOT TO HIS LIKING AT THAT COMPANY.
YOUR TAKE? MAX: THAT IS CERTAINLY WHAT IS GOING
ON. JUST LOOKING AT HIS SOCIAL MEDIA HEINO, YOU CAN SEE HIS
ATTENTION HAS BEEN ELSEWHERE. IT IS UNDERSTANDABLE THAT HE
WOULD COME BACK OR SORT OF SNAP INTO FOCUS AND SEE A COMPANY
THAT IN MANY WAYS SEEMS TO BE IN CRISIS.
WE'VE SEEN THE STOCK FALL PRETTY DRAMATICALLY OVER THE
FIRST FEW MONTHS OF THE YEAR. THESE HUGE ISSUES WITH
INVENTORY PILING UP, QUESTIONED ABOUT DEMAND.
AND HE IS LEANING INTO ROBOTAXI BECAUSE OF COURSE, THAT IS THIS
KIND OF HUGE BET WHICH ELON MUSK LIKES THAT COULD
POTENTIALLY TURN THIS WHOLE THING AROUND, THAT COULD REALLY
SEPARATE TESLA FROM SOME OF THESE OTHER ELECTRIC CARS THAT
ARE COMING TO MARKET RIGHT NOW. PEOPLE ARE GETTING EXCITED
ABOUT, ALSO GETTING GOOD REVIEWS. ED:
FOR MILLIONS OF BLOOMBERG TECHNOLOGY AUDIENCE MEMBERS
AROUND THE WORLD, MAKE THE CASE FOR WHY THEY SHOULD FOLLOW US
ALONG DURING EARNINGS AND HOW THEY CAN FOLLOW ALONG THIS
EVENING. MAX: YOU CAN FOLLOW ALONG ON THE
BLOOMBERG.COM LIVE BLOG, ON THE TERMINAL.
ED AND I WILL BE PLAYING THIS GAME LIKE CRAZY ON SOCIAL AND
HOPEFULLY OFFERING SOME HALF DECENT COMMENTARY TO HELP YOU
PROCESS THIS BECAUSE OF COURSE, THIS IS A HUGE COMPANY, A BIG
ISSUE. ONE OF THE LARGEST COMPANIES IN
THE WORLD BY MARKET CAP AND WHERE ELON MUSK GOES FROM HERE
IS GOING TO AFFECT US ALL, SO WE WILL BE PAYING ATTENTION TO
THAT AS WELL. CAROLINE: SHARE PRICES UNDER PRESSURE TO
SAY THE VERY LEAST THIS YEAR. IMPORTANT FOR THOSE INVESTORS.
MAKING LIGHT OF WHAT WOULD BE A VERY SERIOUS EARNINGS CALL.
THE ELON-ING PODCAST DROP LITTER TODAY.
MEANWHILE, SOME BREAKING NEWS FOR GOING TIKTOK.
THIS IS ABOUT THE E.U.'S FOCUS ON TIKTOK.
THEY HAD ISSUED TIKTOK 24 HOUR TO SEND OVER RISK ASSESSMENT
FOR THE NEW APP WHICH HAD ISSUED IN SPAIN AND FRANCE.
WE UNDERSTAND THAT BYTEDANCE SAYS IT HAS SENT TIKTOK RISK
ASSESSMENT REPORT TO THE E.U., ALL OF THIS IS HIGHLIGHTING THE
ONGOING REGULATORY FOCUS FOR THIS PARTICULAR SOCIAL MEDIA
COMPANY THAT OPENED A NEW PROBE ON MONDAY, BASICALLY
THREATENING FINES OF UP TO 1% TOTAL ANNUAL INCOME IF THEY
DIDN'T GIVE A PARTICULAR RISK ASSESSMENT FOR TIKTOK.
THEY SAY POTENTIALLY VIOLATED THE NEW CONTENT LAW WHEN IT WAS
LAUNCHED OVERALL. REMEMBER, THIS IS KIND OF LIKE
A LESS HEAVY FROM THE MEMORY PERSPECTIVE VERSION OF TIKTOK
BUT ALSO IT PAYS TO PLAY AND THEIR AIR -- ARSON ADDICTION
WORRIES. SO ALL EYES ON TIKTOK LATER
TODAY IN THE UNITED STATES AS WELL.
THAT ALL-IMPORTANT DISCUSSION IN THE SENATE.
BUT FOR NOW, THAT DOES IT FOR THIS EDITION OF BLOOMBERG
TECHNOLOGY. ED: DON'T FORGET TO RECAP ON THE
PODCAST. I KNOW WE ARE VERY EXCITED THAT THE MEGA CAP NAMES
AND TESLA, BUT SPOTIFY, MY GOODNESS, WHAT A GREAT REPORT
OUT OF NEW YORK CITY. WE ARE PUBLISHING THE POT TO
APPLE, SPOTIFY, AND OF COURSE, ALL OF THE BLOOMBERG PLATFORMS.
