ANNOUNCER:
FROM THE HEART OF WHERE MONEY, AND INNOVATION COLLIDE IN
SILICON VALUE, THIS IS "BLOOMBERG TECHNOLOGY"
WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE:
I AM CAROLINE HYDE IN NEW YORK. ED: I AM ED LUDLOW IN SAN
FRANCISCO. THIS IS "BLOOMBERG TECHNOLOGY."
CAROLINE: LEGISLATION CLEARS THE HOUSE
AND HEADS TO THE SENATE. TIKTOK PREPARES TO TAKE IT TO
THE COURTS. WE WILL HAVE FULL COVERAGE
AHEAD. ED: PLUS, WE TAKE A DEEP DIVE INTO
TESLA AS ELON MUSK SHIFTS THE COMPANY'S FOCUS.
WE ARE BRINGING YOU FINDINGS. CAROLINE:
THE COMPANY STRUGGLED TO AGREE ON TERMS OF THE DEAL ACCORDING
TO SOURCES. WE WILL DISCUSS THAT AND MUCH
MORE. FIRST, WE CHECK ON MARKETS.
CALM BEFORE AN EARNINGS STORM. NASDAQ UP .1%.
A LOT OF AUCTIONS ON DECK WHEN IT COMES TO DEBT IN THE UNITED
STATES AND WHAT THAT MEANS FOR SUPPLY AND BORROWING COSTS TO
THE HIGH SIDE. WE ARE STEADY AT 4.62%. WHAT OF CHINA-U.S.?
WE WILL DIG INTO THAT. THE VIX AT AN 18 HANDLE.
WE HAVE SEEN LESS OF AN AGGRESSIVE BID INTO RISK ASSETS.
BWE ARE STILL UP BROADLY. THIS IS AFTER THE HALVING
WITHOUT A HITCH. A PULLBACK IN BITCOIN MINING
MAY MEAN AN UPTICK IN PRICES. WHAT ARE YOU WATCHING? ED:
A FIRM FOCUS ON TESLA. WE ARE AT SESSION LOWS DOWN
4.6%, DOWN FOR A SEVENTH STRAIGHT DAY.
PRICE CUTS AROUND THE WORLD OVER THE WEEKEND.
LAYOFFS CONTINUE. FSD DOWN TO $8,000 IN THE
UNITED STATES. WE WILL BRING YOU THE BIG TAKE
LATER IN THE SHOW WHERE WE HAVE REPORTED NEW INFORMATION ABOUT
THE LAYOFFS, ROBOTAXI, CHEAPER EV MODEL.
IN 24 HOURS, WE HAVE ONE OF THE MOST IMPORTANT EARNINGS CALLS
IN TESLA'S HISTORY. THE OTHER BIG STORY WE ARE
TRACKING IS THE DIVEST TIKTOK BILL ON THE HILL.
WE PASSED AT HOUSE OVER THE WEEKEND.
THE EXPECTATION IS IT WILL PASS THE SENATE IN THE COMING DAYS. OUR RESEARCHERS ARE SAYING
THERE IS A 90% CHANCE IT WILL GO TO THE SENATE AND BE PASSED
INTO TLAW. THESE ARE PUBLICLY TRADED
SOCIAL MEDIA NAMES. THE LANDSCAPE FOR SOCIAL MEDIA
IN THIS COUNTRY IS FRONT AND CENTER THIS WEEK. CAROLINE:
ALSO, WHAT IS HAPPENING ABROAD. THE E.U.
OPENING A NEW INVESTIGATION INTO TIKTOK.
THE SENATE IS EXPECTED TO VOTE ON THE LEGISLATION REQUIRING
TIKTOK'S CHINESE PARENT COMPANY TO DIVEST OWNERSHIP STAKE IN
THE APP. PRESIDENT BIDEN HAS SAID HE
WILL SIGN THE LEGISLATION IF IT GETS THROUGH.
IT LOOKS AS THOUGH THIS IS KIND OF A DONE DEAL NOW. >> IT DOES.
THIS BILL PASSING SEEMS ALMOST INEVITABLE.
PRESIDENT BIDEN HAS SAID HE WILL SIGN IT IMMEDIATELY.
TIKTOK IS ALREADY SCRAMBLING. OVER THE WEEKEND, WE BROKE THE
NEWS THE GENERAL COUNSEL IN THE U.S. FOR TIKTOK WHO HAS BEEN IN
CHARGE OF CONVINCING THE NATIONAL SECURITY INTERAGENCY
COMMITTEE THAT TIKTOK ARE DOING ENOUGH TO PREVENT USER DATA
FROM GETTING TO CHINA IS BEING PUSHED OUT OF HIS ROLE.
CHANGES ARE HAPPENING INTERNALLY.
THE COMPANY IS SENDING MEMOS TO EMPLOYEES PROMISING IF THE BILL
PASSES THIS WEEK IT WILL NOT BE THE END OF THE STORY.
FINANCE AND TIKTOK BOTH INTEND TO FIGHT THIS TO EVERY EXTENT POSSIBLE BEFORE CONSIDERING
DIVESTITURE OR SEPARATION FROM THE PARENT COMPANY. ED:
I TALKED ABOUT THE BLOOMBERG INTELLIGENCE ASSESSMENT OF
WHETHER THIS WILL BE PASSED INTO LAW, 90%.
OTHER ANALYSIS IS IF THERE WERE TO BE A LEGAL CHALLENGE BY
TIKTOK AND U.S. USERS, THEY ASSIGN A 70% CHANCE
THE U.S. GOVERNMENT WILL BE SUCCESSFUL
IN COURT. OVER THE WEEKEND, WE HAD
INTERNAL NEWS AT TIKTOK. WHAT ELSE HAVE YOU REPORTED? >> THOSE PRESSURES ON THE LEGAL
SIDE, IT IS INTERESTING TO SEE THOSE NUMBERS.
THERE ARE A NUMBER OF LEGAL AVENUES TIKTOK MIGHT TAKE.
WE SAW THAT WHEN MONTANA LOOKED TO BAN THE APP STAND BEHIND
USERS THAT SUIT. THERE MIGHT BE SMALL BUSINESSES
OR OTHER ORGANIZATIONS THAT FEEL THEY ARE BEING HARMED.
THE PRESSURE IS ON THE U.S. THIS MORNING, THE EUROPEAN U NION OPENED A NEW PROBE
INTO THE NEW APP. YOU ARE NOT ONLY DEALING WITH
THIS INEVITABLE PASSAGE OF THE BILL THAT BLOOMBERG
INTELLIGENCE PUTS AT 90% PASSAGE, YOU ARE ALSO HAVING TO
FEND OFF CONTINUED PUSHES FOR FINES, SCRUTINY OVER PRIVACY,
AND JUST THE UNPRECEDENTED ATTENTION THIS MOVE BY THE U.S.
CONGRESS HAS MADE AND PERHAPS HAS GOTTEN LAWMAKERS IN OTHER
GEOGRAPHIES THINKING IF THE U.S. IS DOING THIS, SHOULD WE BE
TAKING A CLOSER LOOK? ED: ALEX BARINKA LITERALLY MINUTE
BY MINUTE REPORTING ON THIS. IT WILL BE A BUSY WEEK FOR YOU.
LET'S THE FOUNDER AND CEO OF THE E-COMMERCE MARKETING
PLATFORM FOR MULTICHANNEL BRANDS.
YOU UNDERSTAND THE USERS' INTEREST IN TIKTOK, THE
POTENTIAL OF TIKTOK, AND THE COMPETITION.
I TALKED ABOUT THE CHANCES OF THIS BILL PASSING.
I BELIEVE YOU SEE IT PASSING AS WELL. >> ABSOLUTELY.
IT WILL BE THE BIG HEADLINE THIS WEEK THAT THE BAN WILL
LIKELY HAPPEN. WE DO NOT BELIEVE THIS IS THE
END OF THE STORY. TIKTOK HAS BECOME ONE OF THE
MOST POWERFUL PLATFORMS IN THE WORLD. ON ANY GIVEN DAY, WE SEE TIKTOK
AS OUR SECOND MOST TRAFFICKED PLATFORM.
META NUMBER ONE, TIKTOK NUMBER TWO. TIKTOK DID NOT INTRO THE
CULTURAL SITE DICED UNTIL 2019. FAST-FORWARD TO TODAY, IT HAS
LEAPFROGGED YOUTUBE, SNAP, PINPRICKS -- PINTEREST, AND X.
WE DO NOT BELIEVE THIS WILL BE THE END OF TIKTOK.
TIKTOK WILL FIGHT THIS THE WAY THEY DID WITH TRUMP IN 2020
MONTANA LAST YEAR. IT WILL CREATE TIME FOR
DIVESTITURE TO COME TO LIGHT. WHY WOULDN'T WALMART OR MET TO
MAKE A LAND GRAB FOR THIS? CAROLINE:
BECAUSE CHINA WILL NOT LET THEM. CHINA MIGHT NOT SELL IT OR
WOULD NOT LET THEM HAVE ACCESS TO THE TECHNOLOGY.
MAYBE THEY ARE ABLE TO BUY IT IN THE U.S..
THEY STILL HAVE A YEAR IF THIS GOES PAST THE SENATE, THEY HAVE
A YEAR TO SELL THEMSELVES. TO ANY OF THE 1200 BRANDS THAT
USE YOU START TO PULL BACK ON THEIR INVESTMENT IN TIKTOK AT
ALL? >> THIS HAVE BEEN PART OF THE
DIALOGUE FOR THE PAST YEAR, THAT A BAN COULD HAPPEN.
FOR SOME ADVERTISERS, WE HAVE SEEN A SLIGHT PAUSE.
THAT SAID, TIKTOK TRAFFIC AT MIKMAK HAS GROWN 40%
YEAR-OVER-YEAR. WE CONTINUE TO SEE FORTUNE 1000
BRANDS INVEST IN THE PLATFORM. NOT ONLY ARE THEY INVESTING IN
IT FROM AN ADVERTISING STANDPOINT, THEY ARE STARTING
TO INVEST IN TERMS OF A STANDALONE COMMERCE CHANNEL
WITH THE ADVENT OF TIKTOK SHOPS. WE ARE NOT SEEING BRANDS PULL
BACK. THE REALITY IS WITH ADVERTISING, IT IS EASY TO TURN
ON AND OFF. WE SAW THIS HAPPEN WITH META,
YOUTUBE, X, SO BRANDS HAVE OPTIONS. THEY WILL REALLOCATE SPEND TWO
OTHER SOCIAL CHALLENGES OR PLATFORMS LIKE ROKU.
I AM NOT OVERLY WORRIED ABOUT WHAT WILL HAPPEN IN THE
ADVERTISING LANDSCAPE. THERE ARE PLENTY OF OPTIONS FOR
BRANDS TO DRIVE REACH AND CONVERSION. ED: OVER THE WEEKEND, ELON MUSK,
THE CEO OF X, GAVE HIS OPINION THAT TIKTOK SHOULD NOT BE
BANNED IN THE USA EVEN THOUGH SUCH A BAN MAY BENEFIT HIS OWN
PLATFORM, X. THEREIN LIES THE VALUE OF IT.
YOU TALKED ABOUT THE E-COMMERCE SIDE.
50% OF AMERICANS USE TIKTOK. THAT IS SCALE MANY OTHER
PLATFORMS DO NOT HAVE. >> ABSOLUTELY.
IT IS WHAT TIKTOK IS OUR SECOND MOST TRAFFICKED CHANNEL AT
MIKMAK. META IS NUMBER ONE. THERE ARE FEW PLACES TO REACH
ALL U.S. AMERICAN HOUSEHOLDS. TO REACH 50% OF THEM WITH ONE
AD BUY ON TIKTOK IS EXTREMELY POWERFUL.
WE ARE TALKING ABOUT SETTING A PRECEDENT THAT INTERFERES WITH
THE FIRST AMENDMENT, WHICH IS WHY WE BELIEVE IF THINGS CAN
PLAY OUT, A DIVESTITURE IS MOST LIKELY THE BEST OUTCOME FOR
EVERYONE. BYTEDANCE MIGHT NOT SEE IT THAT
WAY. BUT IN TERMS OF THE U.S. GOVERNMENT, IF I WERE THEM, I
WOULD BE PUSHING FOR THE VESTIGE ARE. -- DIVESTITURE. ED:
I MISSPOKE. I SAID ELON MUSK IS THE CEO OF
X. HE IS NOT. GIVEN THE LAST SEVEN DAYS AND
THE NUMBER OF COMPANIES ELON MUSK IS CEO OF, I THINK THE
WORLD WILL FORGIVE ME. RACHEL TIPOGRAPH, THANK YOU FOR
YOUR ANALYSIS. INTELON MUSK IS SHIFTING HIS
FOCUS TO THE ROBOTAXI. THAT IS COMING UP NEXT.
CAROLINE: LET'S TAKE INTO WHAT WAS
HAPPENING ON FRIDAY. REMEMBER WHEN NVIDIA WAS DOWN
10%? TODAY, IT IS UP BUT ONLY 1.3%.
WE ARE FADING SOME OF THE RALLY IN TECH.
THIS IS "BLOOMBERG TECHNOLOGY." ED: BLOOMBERG BIG TAKE. TESLA CONSUMER CHAOS AMONG THE
SHIFT FROM NEW, CHEAPER MODELS TO CLEARLY A ROBOTAXI.
WE TRIED TO CLARIFY WHAT IS GOING ON.
MY UNDERSTANDING IS THIS IS ELON MUSK.
HE HAS SAID ROBOTAXI IS THE FOCUS.
A CHEAPER EV IS NOT COMPLETELY SCRAPPED. BUT IT IS CONFUSING.
YOU HAVE READ THE BIG TAKE. DID WE GIVE YOU CLARITY ON
WHERE WE STAND? CAROLINE: YOU DID.
YOU HIGHLIGHTED HOW MUCH WE HAVE SEEN REORIENTATION OF ELON
MUSK. YOU ARTICULATE SO WELL SOME OF
THE NEGATIVES FELT BY PEOPLE LET GO OF THE COMPANY. ED:
ONE CLEAR THING IS LOADS OF EXECUTIVES AT TESLA SAID PLEASE
DO THE $25,000 EV. ELON SAID NO, WE ARE DOING
ROBOTAXI. THERE'S IS A DIFFERENCE IN
PHILOSOPHY. IT IS NOT CANCELED OR SCRAPPED.
IT JUST LOOKS DIFFERENT. A LOT TO BE DISCUSSED. CAROLINE:
THIS IS A CHEAPER MODEL FOR OTHER PURPOSES AND A MORE WIDE
REACHING COMPANY INVESTORS ARE TRYING TO GET THEIR HANDS
AROUND. SHARE PRICES REFLECT THAT. CRAIG, YOUR KEY TAKEAWAY, WHAT
ARE THE PRIORITIES? THE PRIORITY NOW IS ROBOTAXI
BUT FOR THE GREATER GOOD? >> YEAH.
I WAS TALKING WITH SOME OF OUR COLLEAGUES. I THINK THE IDEA THAT MAYBE
ELON MAY MAKE THE CASE TO WALL STREET TOMORROW THAT WE ALREADY
HAVE A $25,000 CAR. WHEN YOU TAKE INTO ACCOUNT GAS
SAVINGS AND TAX CREDITS, THE MODEL 3 AFTER THE PRICE CUTS OF
THE LAST YEAR-PLUS IS GETTING CLOSE TO THAT.
I THINK WHAT WE WILL SEE FROM TESLA IN THE MONTHS TO COME IS
THIS ATTEMPT TO FURTHER EMPHASIZE THE VALUE THEY ARE
OFFERING WITH THE MODEL 3 AND THE MODEL Y AND APPLY SOME OF
THE WORK THEY WANT TO USE TO UNDERPIN THE ROBOTAXI TO BRING
THOSE COSTS DOWN FURTHER. I THINK THE REAL QUESTION IS
WHETHER OR NOT THAT WILL CUT IT FOR WALL STREET.
THEY WANT TO SEE SOME NEW PRODUCT. ED:
WE TRIED TO GIVE CLARITY ON THAT.
WE TRIED TO GIVE CLARITY ON THE LAYOFFS.
ONE SOURCE PUT IT TO ME THAT DELIVERIES WERE DOWN IN THE
FIRST QUARTER SO MUSK SAID IF DELIVERIES ARE DOWN 20%, LET'S
JUST CUT HEADCOUNT 20%. NOT FOR ANY REASON TO DO WITH
COST SAVING NECESSARILY. THIS IS LIKELY ELON MUSK
PLAYBOOK. WHEN YOU EDITED THE BIG TAKE, I
HOPE YOU GOT THE SENSE THAT THIS IS ELON MUSK PULLING THE
STRINGS ON THIS. >> IT TAKES ME BACK A LITTLE
BIT TO THE WALTER ISAACSON BIOGRAPHY.
I FEEL LIKE THE WORD "ELITE" WAS IN THE BOOK AT LEAST 50
TIMES -- "DELETE" WAS IN THE BOOK AT LEAST 50
TIMES. WHEN COMPANIES RUN INTO TROUBLE, HE WANTS TO CUT
EVERYTHING AND GET RID OF EVERYTHING AND QUESTION WHY
COMPANIES ARE DOING THINGS, BUILDING THINGS.
WHY DO WE NEED THAT COMPONENT? WHY ARE WE DOING THIS PROCESS?
I THINK THE QUESTION IS WHETHER HE HAS CUT TO THE BONE.
WE ARE EVEN SEEING QUESTIONING OF WHETHER OR NOT HE IS DOING
THAT IN THE PRICE CUTS OVER THE WEEKEND, WHETHER THEY WILL BE
EARNINGS LEFT IN CHINA IN TERMS OF HOW FAR THEY HAVE GONE WITH
THE MODEL 3 AND THE MODEL Y IN THAT MARKET. CAROLINE:
THE KEY POINT HERE IS WE ALL THINK ABOUT THE BIGGER PICTURE
AND LOOK AHEAD TO THE MICRO. IN A LITTLE OVER 24 HOUR'S, WE
GET THE EARNINGS. ED: IN 24 HOURS, WE WILL HAVE
EARNINGS BINGO AGAIN. WE WILL HAVE ONE OF THE MOST
IMPORTANT EARNINGS CALLS IN TESLA HISTORY.
WHAT ARE YOU WATCHING FOR? >> AS MUCH HYPE AROUND AI AND
FULL SELF-DRIVING AS WE CAN POSSIBLY IMAGINE, I THINK THAT
IS THE EXPECTATION BECAUSE THERE ARE NOT MANY OTHER CARDS
TO PLAY. CAROLINE: CRAIG TRUDELL WITH IMPORTANT
REPORTING, THANK YOU. LET'S GET INTO THE EARNINGS
ACROSS THE TECH SECTOR. I UNDERSTAND YOU HAVE SOME
EXPOSURE TO TESLA. HAVE YOU FELT THE MARKET HAS
PRICED IN SOME OF THE WORST FOR A BUSINESSLIKE TESLA? >> I THINK BROADLY SPEAKING THERE IS STILL SOME DOWNSIDE
SPECIFICALLY BECAUSE SOME STOCKS HAVE BEEN DRIVEN BY
MOMENTUM. IT HAS BEEN A PRETTY BIG
DECLINE WE HAVE SEEN IN TESLA. CLARITY IS NOT THERE.
BROADLY SPEAKING FROM THE MAGNIFICENT SEVEN, THIS
EARNINGS SEASON, THEY HAVE A LOT TO PROVE.
VALUATIONS ARE VERY ELEVATED. IF WE DO NOT SEE THIS COME
THROUGH FROM AN EARNINGS PERSPECTIVE, I THINK THERE IS
MORE DOWNSIDE AND MORE OF A CORRECTION. CAROLINE:
WHAT I LOVE ABOUT YOUR ANALYSIS IS HOW DEEP YOU GO
ON HOW POWERFUL AND ENCOMPASSING THOSE MAGNIFICENT
SEVEN PLAYERS HAVE BEEN. FIVE OF THE SEVEN HAVE EXPECTED
TO BE THE TOP FIVE CONTRIBUTORS TO YEAR-ON-YEAR EARNINGS GROWTH
FOR THE S&P. IF THEY DO NOT GIVE US WHAT WE
NEED, EARNINGS MORE BROADLY WILL FALL ACROSS THE S&P. >> IT WILL DEFINITELY BE WEAKER
THAN THE ANTICIPATION RIGHT NOW. THE ANTICIPATION IS ONLY FOR
ABOUT .5% EARNINGS GROWTH. THERE'S A LOT RIDING ON THE
MAGNIFICENT SEVEN. I THINK THAT IS WHY THE MARKETS
ARE UP A LITTLE BIT TODAY BUT MOVING SIDEWAYS.
THEY ARE WAITING FOR EARNINGS. THERE ALSO WAITING ON THE PCE
LATER THIS WEEK IN THE FIRST READ ON GDP FOR THE FIRST
QUARTER -- AND THE FIRST READ ON GDP FOR THE FIRST QUARTER.
ED: THERE IS A UBS NOTE THIS MORNING DOING THE ROUNDS.
A LOT OF PEOPLE ARE TALKING ABOUT IT.
THEY HAVE CUT ON THE BIG SIX TO NEUTRAL FROM OVERWEIGHT.
THEY ARE SAYING TOUGH COMPS THIS QUARTER.
I THINK THEY ARE SURPRISING -- SUGGESTING IF YOU GO AWAY FROM THE BIG SIX OR MAG SEVEN ,
THERE ARE OTHER CORNERS OF THE MARKET TO PLAY IN.
DO YOU SHARE THAT THESIS? >> ABSOLUTELY.
THESE STOCKS HAVE HAD A GREAT RUN. VALUATIONS ARE VERY HIGH.
PEOPLE ARE LOOKING OUTSIDE OF THAT TO MAKE MONEY.
NOT JUST IN THE LARGE CAP SPACE. BUT IN THE SMALL AND MID-CAP
SPACE, I THINK THERE IS MORE VALUE.
THEY HAVE NOT PARTICIPATED IN THE RALLY IN THE LARGE CAP
SPACE. FROM A LONG-TERM'S PROTECTING
-- LONG-TERM PERSPECTIVE, THEY ARE HISTORICALLY CHEAP. THERE IS A LOT OF UNCERTAINTY
AROUND EARNINGS IN THE NEXT COUPLE OF QUARTERS.
IF YOU CAN WITHSTAND THAT VOLATILITY AND LOOK
LONGER-TERM, THESE MAY BE OPPORTUNITIES IN THE MARKET. ED:
THERE IS QUITE A LOT RIDING ON EARNINGS THIS SEASON.
LOTS OF PEOPLE SAY IF EARNINGS DO NOT DELIVER FOR US ON THE
BIG SIX, MAG SEVEN, TECH WILL FALL AWAY AND THE MARKET WILL
GO WITH IT. WE LIKE DRAMA ON THIS SHOW.
BUT REALISTICALLY, HOW WORRIED ARE YOU ABOUT THE STAKES IN THE
COMING WEEKS? >> I AM QUITE WORRIED.
WE HAD A LITTLE BIT MORE THAN A 5% CORRECTION IN THE MARKET THE
PAST COUPLE OF WEEKS. THAT WAS NOT ENOUGH IN MY
OPINION TO LOOK AT THESE ELEVATED VALUATIONS AND TAKE
ALL OF THESE MOUNTING RISKS WE HAVE FROM AN ECONOMIC
STANDPOINT, GEOPOLITICAL STANDPOINT, FEDERAL RESERVE
STANDPOINT. I THINK THERE IS STILL TOO MUCH
OPTIMISM ABOUT WHAT THE COULD DO. THE BIGGER RISK IS, WHAT IS
INFLATION GOING TO DO? ARE WE IN THE MIDST OF A
REIGNITION OF INFLATION? IF THAT IS THE CASE, THESE
VALUATIONS AND EXPECTATIONS ARE NOT SUSTAINABLE. ED:
REALLY APPRECIATE YOUR TIME ON THE SHOW THIS MORNING.
COMING UP, AUSTRALIA IS GEARING UP FOR A SHOWDOWN WITH ELON
MUSK. CAROLINE: NO, NO! ED: I AM SORRY.
I CANNOT HELP MYSELF. CAROLINE: LET'S GET OUT TO THE REST OF
THE EARNINGS SPACE. VERIZON FALLING HARD, OFF BY
MORE THAN 4%, EVEN AS THEY BEAT AND LIST ESTIMATES FOR PROFIT.
MAYBE THERE WAS SOME WORRY ABOUT OPERATING REVENUE THAT
BEAT -- MISSED WALL STREET'S PROJECTIONS.
THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE:
CALLS ARE GROWING FOR A CRACK DOWN ON X IN AUSTRALIA AFTER
TWO KNIFE ATTACKS IN SYDNEY. GRAPHIC CONTENT FROM THE
STABBINGS AS WELL AS MISINFORMATION SPREAD QUICKLY.
THAT HAS PROMPTED FIVE GOVERNMENT MINISTERS TO
CONSIDER TOUGHER LAWS FOR SOCIAL MEDIA COMPANIES.
TENCENT SHARES STAGED A BIG RALLY SINCE DECEMBER.
NOW WE KNOW CHINA'S BIGGEST INTERNET FIRM HAS AN EARLIER
THAN ANTICIPATED DEBUT OF THE GAME TO DRAW IN NEW USERS. JAPAN'S UNDER TRUST REGULATOR
HAS ITS EYES ON GOOGLE AFTER HIS HAS THE TECH CHINESE USED
TACTICS THAT LIMITED YAHOO! JAPAN'S ABILITY TO COMPETE.
ALPHABET CHANGED THEIR CONDUCT AS SOON AS THEY FLAGGED THE
PRACTICE BUT THEY WILL KEEP ON MONITORING THE U.S. FIRM.
WHAT ARE YOU LOOKING AT? ED: WE WILL BE JOINED BY THE
BITCOIN CO-FOUNDER TO DISCUSS BITCOIN'S HALVING.
I'M ALSO LOOKING AT SHARES OF APPLE.
THIS IS A MARKET MECHANICS THING. WE ARE OFF SESSION LOWS BUT
APPLE IS NAMED AS A TOPIC FOR 2024 BY BANK OF AMERICA. OLD-SCHOOL STORY, BIG BALANCE
SHEET, GREAT CASH FLOWS, KIND OF DULL IN THE CONTEXT OF
TECHNOLOGY. THAT IS HOW WE HAVE BEEN
TALKING ABOUT APPLE. EARNINGS ARE JUST AROUND THE
CORNER. HOW EXCITING. THIS IS "BLOOMBERG TECHNOLOGY." >> APPLE'S NEXT BIG THING IS
AVERSION TO LARGER LANGUAGE MODELS.
APPLE HAS BEEN WORKING ON SEVERAL MAJOR PROJECTS
INCLUDING IROBOT AND AUGMENTED-REALITY GLASSES.
BUT THE BIGGEST AND MOST IMPORTANT PROJECT IS A PUSH
INTO GENERATIVE AI. APPLES APPROACH WILL BE GIVEN
THAT THE COMPETITION, LIKE GOOGLE, OPENAI, AND META.
CONSIDER POWERING IT -- INSTEAD OF POUNDING IT ON CLOUD-BASED
SERVERS, IT WILL FUNCTION ON THE IPHONE ITSELF, USING THE
ON-DEVICE SOFTWARE AND OTHER CHIPS.
THAT MAKES IT QUICKER, MORE SECURE, AND APPLE BELIEVES MORE
FUNCTIONAL AND ACCURATE. WITH IPHONE 18 COMING IN
SEPTEMBER, APPLE PLANS TO INCLUDE A SLEW OF NEW AI
FEATURES THAT WILL HELP USERS IN THEIR DAILY LIVES.
I'M MARK GURMAN. THIS IS "POWER ON." ED:
LET'S GET A CHECK ON THE MARKETS.
ONE ASSET WE HAVEN'T TALKED AS MUCH ABOUT IS BITCOIN.
HALVING HAS OCCURRED. AS SUCH, IT CUTS IN HALF OF THE
REWARDS PAID INTO MINERS. 65,000, 66,000 U.S.
DOLLARS NOW . WHERE WE ARE SEEING A MORE
DELAYED REACTION IS THE ASSETS THAT DO NOT TRADE 24-7.
IN OTHER WORDS, THE U.S.-TRADED EQUITIES OR STOCKS THAT ARE
CRYPTO-LINKED. RIOT, ANOTHER BLOCKCHAIN
PLATFORM, UP 9%. SOME MOVING TO THE DOWNSIDE.
MARATHON DIGITAL HOLDINGS DOWN 3.9%. THERE WAS A HEADLINE THAT THE
HALVCING WAS A BIT OF A LIMP BUT I THINK WE SHOULD BE
EXCITED ABOUT IT. CAROLINE: STILL PARTIES, VIRTUAL OR IN
REAL LIFE. I WANT TO KNOW HOW MANY OF
THOSE INVITES YOU WENT TO, ED. ONE OF THE PERSONS POSTING
THOSE HALVING PARTIES IS CHRIS KLEIN.
YOU WATCHED IT HAPPEN WHEN IT OCCURRED ON FRIDAY NIGHT, BUT
NOW THE REALITY IS MAYBE THERE ARE SOME PLAYERS, MINERS OUT
THERE THAT DON'T GET REWARDED AS MUCH.
ULTIMATELY THIS IS MEANT TO DRIVE THE INCREASE OF BITCOIN
PRICES. WILL IT? >> ABSOLUTELY.
THANKS FOR HAVING ME. WE HAD SOME GOOD PARTIES LAST
WEEK FOR THE HALVING. IT DOES PUNISH THE PRODUCERS OF
ASSET CLASS. YOU WILL SEE HEADLINES THIS
MORNING THAT HE CAME OFF WITH A WHIMPER.
THAT IS PRETTY TYPICAL FOR HALVING EVENTS.
IT IS THREE TO SIX MONTHS WHERE YOU SEE THE IMPACT OF THAT
SUPPLY CONSTRAINT THAT TAKES PLACE. ED:
SUPPLY CONSTRAINT HAS NOT YET TAKEN PLACE.
I WANT TO FOCUS ON THAT FOR A MINUTE.
I THINK YOU GUYS HAD A PRETTY GOOD QUARTER, AND ACTUALLY
SINCE THE START OF THE YEAR, WHETHER YOU ARE FOCUSED ON THE
UNDERLYING TECHNOLOGY OR YOU ARE A PARTICIPANT IN THE
MARKETPLACE FOR CRYPTO-RELATED ASSETS, THINGS HAVE BEEN QUITE
CHEERY. PUT THAT INTO CONTEXT. AS EVERYONE WAS BRACING FOR THE
HALVING, THEY WERE CARRYING ON BUSINESS. CHRIS:
IT IS EASY TO EXPECT A BIG TIMES SQUARE EVENT, AND THE
REALITY IS WE HAVE JUST HIT ANOTHER BLOCK IN WHICH IT IS IN
OUR CODE, IN OUR DNA TO CUT THE REWARDS AND THEN LIMIT THAT
SUPPLY. THIS IS NOT HAPPENING IN A
VACUUM, EITHER. ETF'S ARE TAKING THE LION'S
SHARE OF THESE RIGHT NOW. WE HAVE A FEW BILLION DOLLARS
OF CLIENT ASSETS UNDER CUSTODY INSIDE OUR PLATFORM, AND THERE
WILL BE MORE AND MORE WHEN LESS AND LESS IS AVAILABLE, WHICH
THE CONTRAST OF THE ALMIGHTY DOLLAR AND THE WAY THE U.S.
DOLLAR WORKS TODAY. WE REWARD PRODUCERS OF CURRENCY
EVERY FOUR YEARS WITH THINGS CALLED REELECTIONS. ED:
I GET THE PARALLEL. WE HAVE A BIG PART OF OUR
AUDIENCE FOCUSED ON LARGELY THE BLOCKCHAIN.
THEY PROBABLY DON'T CARE ABOUT ANY GIVEN DIRECTION OF THE
MOVEMENT IN BITCOIN OR ITS CURRENT PRICE.
THERE IS A BIG MARKET OF PEOPLE WHO DO, AND MANY OF THEM ARGUE
BECAUSE OF THE FINITE SUPPLY, AND I'M REPEATING MYSELF TO AN
AUDIENCE, WE ALWAYS TALK ABOUT THIS, BUT IT CAN -- BUT BITCOIN
CAN ONLY EVER GO UP IN PRICE. THE OTHER STORY OF THE FIRST
QUARTER WAS LIQUIDITY. THIS IS QUITE A LIQUID MARKET.
I DO WE SQUARE THOSE TW -- HOW DO WE SQUARE THOSE TWO? CHRIS:
THERE ARE BIGGER NERDS WHO CAN HANDLE THAT FOR YOU.
YOU DON'T TRADE IN ONE BITCOIN. IT GOES DOWN TO THE 11TH
DECIMAL POINT, AS WE GET FURTHER DOWN THAT SCARCITY, WE
WILL SEE THE IMPACT OF PEOPLE WILL BE YOU ARE A 1 BITCOINER
AND THAT WILL BE A HUGE DEAL. YOU CAN HAVE THIS CONVERSATION
WITHOUT TALKING ABOUT INFLATION AS YOU CAN'T HAVE THIS COME
VISIT -- YOU CAN'T HAVE THIS CONVERSATION WITHOUT TALK ABOUT
INFLATION. AMERICANS NEED $1.5 MILLION TO
RETIRE COMFORTABLY, WHICH IS A LARGE NUMBER.
WHAT IS REALLY STAGGERING IS JUST THREE YEARS AGO THE SAME
REPORT WAS $950,000. IN JUST THREE YEARS AMERICANS
FEEL LIKE THEY NEED 53% MORE MONEY JUST RETIRE COMFORTABLY,
AND THAT IS PART OF WHY FOLKS ARE LOOKING AT DIVERSIFICATION
OF CURRENCY, AND BITCOIN IS AN OPPORTUNITY FOR THAT. CAROLINE:
YOU ARE LOOKING AT WHAT WE ARE SAVING FOR A PENSIONS FOR OUR
RETIREMENT BECAUSE YOU HAVE IT IN YOUR NAME, BITCOIN IRA.
YOU DON'T JUST OFFER BITCOIN. YOU OFFER OTHER CRYPTO
CURRENCIES. THIS COMING OF AN ETF WAS MEANT
TO TEMPT THE SO-CALLED BOOMERS AND GET THEM INTO ALLOCATING
BITCOIN. WHAT ABOUT THE REST OF THE
ALTCOINS AND HOW YOU ARE SEEING INTEREST PICK UP? CHRIS: WE SHOULD MAYBE EXPECT LATER
THIS YEAR. I DON'T GET EXCITED BECAUSE I
WAITED SEVEN YEARS FOR THE BITCOIN ETF TO GET APPROVED. THERE ARE A SLEW OF COINS, ON
OUR PLATFORM ABOUT 65 DIFFERENT COINS OR CURRENCIES AVAILABLE
TODAY, AND THEY ALSO GIVEN UTILITIES.
ETHEREUM IS THE BACKBONE OF THE WEB OR THE INTERNET, WHICH IS
DESIGNED FOR SMART CONTRACTS. I WISH MY 10-YEAR-OLD DAUGHTER
WERE HERE, SHE WAS ON MY PODCAST LAST WEEK AND SHE HAS
ONE-WORD ASSOCIATIONS. LITE COIN IS FOR FAVORITE,
SHOPPING. ED: I THINK A HUGE PART OF OUR
AUDIENCE GET THAT, THEY ENJOY SIMPLE FIND THINGS A BIT.
CHRIS KLINE, GREAT TO HAVE YOU ON THE PROGRAM IN SAN FRANCISCO.
COMING UP, WE WILL HEAR FROM THE CANDLE MEDIA CO-CEO, ALSO A
FORMER CEO OF TIKTOK. WE HAD A VERY INTERESTING
CONVERSATION AND IT'S COMING UP NEXT. THIS IS BLOOMBERG. ED: LET'S TALK ABOUT THE
ENTERTAINMENT INDUSTRY. I CHATTED WITH KEVIN MAYER,
FORMER CEO OF TIKTOK AND FORMER DISNEY CHAIRMAN, AND WE TALKED
ABOUT, YOU GUESSED IT, TIKTOK'S TROUBLES, BUT ALSO DISNEY'S
LEADERSHIP. HE IS THE CO-CEO OF CANDLE
MEDIA, WHICH OWNS MOON BUG ENTERTAINMENT.
I HAD TO ASK HIM IF WE SHOULD EXPECT MORE FROM THE COMPANY'S
SMASH HIT CHILDREN'S SERIES. KEVIN:
WE ARE PLANNING A MOVIE -- IT HAS NOT BEEN OFFICIALLY
ANNOUNCED, BUT THERE IS A MOVIE COMING OUT THAT WILL
THEATRICALLY RELEASED OR ON A STREAMING SERVICE.
I'M THINKING IT COULD BE THEATRICALLY RELEASED AND THAT
WOULD BE GREAT. AND YOU ARE RIGHT ABOUT
LICENSING AND MERCHANDISE. YOU HAVE THE REACH AND DEPTH OF
ENGAGEMENT THAT WE HAVE WITH OUR PROPERTIES WITH KIDS AND
THEIR PARENTS, THERE IS A HUGE AMOUNT OF CO-VIEWING, SOMETHING
LIKE 40% OF ALL VIEWS ALSO SEEN BY PARENT. THAT DOES LEND ITSELF TO
DEVELOPING A WHOLE SET OF LICENSED PROPERTIES THAT ARE
BASED ON THAT CHARACTER. BOYS, T-SHIRTS, BEDROOM
ACCOUTREMENTS, ALL THE STUFF YOU EXPECT, WE ARE IN ALL OF IT.
-- TOYS, T-SHIRTS, BEDROOM ACCOUTREMENTS, OF THE STUFF YOU
EXPECT, WE ARE IN ALL OF IT. ED: I'M SURE IT HAS COME UP AT
JEFFREY'S, PART OF YOUR PRESENT, IT IS DISNEY.
WHO DO YOU THINK SHOULD BE THE NEXT CEO OF DISNEY?
I WILL JUMP IN AND ASK IF YOU WOULD THROW YOUR OWN HAT INTO
THE RING. KEVIN: I'M PRETTY BUSY.
I HAVE A TECH FUND I'M WORKING WITH THAT I AM A COFOUNDER OF,
CANDLE MEDIA. DISNEY HAS A VERY, VERY SOLID
SET OF LEADERS BELOW BOB. THEY HAVE A GREAT BENCH.
THEY HAVE PEOPLE THAT HAVE BEEN THERE A LONG TIME THAT
UNDERSTAND THE DISNEY CULTURE AND THE PROMINENCE AND DYNAMISM
OF BRANDS. MOSTLY THEY WILL GO INTERNAL
AND THEY HAVE CANDIDATES THAT I THINK ARE WONDERFUL.
MY HAT -- I'M NOT COST MY HAT IN THE RING, ACTUALLY FOR --
I'VE NOT TOSSED MY HEAD IN THEIR INCOME ACTUALLY. ED:
THERE ARE MANY STREAMING PLATFORMS TO CHOOSE FROM.
ONE OF THE NAMES YOU DIDN'T MENTION WAS PARAMOUNT PLUS, AND
PEACOCK'S WHEN I THINK ABOUT A LOT.
IS THERE A WORLD IN WHICH ALL OF THESE SURVIVE INDEPENDENTLY,
OR DO YOU SEE SOME CONSOLIDATION -- I KNOW YOU
MUST GET ASKED THAT ALL THE TIME BY THE FINANCIAL PRESS OR
FINANCIAL NETWORK LIKE OURS, BUT I POINT TO THE IDEA THAT
YOU SAT ON THE OTHER SIDE OF THE TABLE, CONTENT CREATOR, AND
YOU HAVE POWER AND INTEREST IN WHERE IT IS DISTRIBUTED. KEVIN:
LOOK, I DON'T KNOW WHAT THE FUTURE OF PARAMOUNT PLUS AND
PEACOCK ARE. I DON'T HAVE A CRYSTAL BALL.
I DO THINK THERE IS A SCALE ISSUE WITH THEM.
I DO BELIEVE NOT EVERY SINGLE STUDIO CAN HAVE AN ASSOCIATED
STREAMING SERVICE THAT HAS THE SAME PROSPECTS AS DISNEY OR MAX
OR NETFLIX, OR AMAZON FOR THAT MATTER.
THAT'S BEEN A HUGE PLAYER, AS IS APPLE TV+.
I DO THINK CONSOLIDATION IS INEVITABLE.
THAT'S NATURAL ECONOMICS 101. INDUSTRIES START UP IN EVERY
THING IS ABOUT GROWTH AND THE COST OF CAPITAL IS VERY
INEXPENSIVE BACK WHEN NETFLIX STARTED THE BALL ROLLING. I THINK THERE WAS VERY FREE
ACCESS TO CAPITAL AND A LOT OF PATIENCE ON BEHALF OF INVESTORS.
AS THE INDUSTRIES MATURE AND THEY PENETRATE MORE HOUSEHOLDS
AND NATURAL GROWTH LEVELS OFF, ALWAYS CONSOLIDATION HAPPENS.
AND YOU FOCUS ON COSTS AND COST SYNERGIES AND SYNERGIES
INHERENT IN MERGERS AND THE LIKE.
THAT IS A NATURAL COURSE FOR ANY GROWTH SECTOR TO EVOLVE
INTO AN THAT IS WHAT YOU ARE SEEING.
IT WILL HAPPEN THERE, TOO. ED: I'M PUSHING MY LUCK -- I'M TOLD
WE HAVE GOT TO GO, BUT I WOULD BE REMISS IF I DIDN'T ASK YOU
ABOUT TIKTOK. ASSESSMENT HAVING BEEN INSIDE
AND NOW ON THE OUTSIDE OF WHAT YOU THINK WILL HAPPEN?
I KNOW YOU DON'T HAVE A CRYSTAL BALL, BUT THE POLITICAL WILL IS
DIVESTITURE OF THE U.S. ARMY AND TIKTOK SEEMS TO THINK
THAT, SELLING U.S. USER DATA IN -- THOMAS FILING
U.S. USER DATA IS THE ANSWER. KEVIN:
IT IS HARD FOR ME TO CALL. I HAVEN'T BEEN AT TIKTOK FOR
SEVERAL YEARS NOW. I'M OBSERVING IT THE WAY
EVERYONE ELSE IS OBSERVING IT. I WILL SAY THIS ABOUT TIKTOK,
IT'S A GREAT TEAM. IS AN INDEPENDENT COMMITTEE,
ALTHOUGH IT IS CHINESE, IT IS NOT, AS FAR AS I KNOW, RUN BY
THE GOVERNMENT IN CHINA OR ANYTHING ELSE.
I'M NOT FAMILIAR WITH ALL THE DIFFERENT SECURITY CONCERNS
THAT THE GOVERNMENT MAY OR MAY NOT HAVE, BUT I DO KNOW THAT
THE FOLKS THAT I DEALT WITH AT TIKTOK WERE HIGH-QUALITY PEOPLE.
THE PRODUCT IS SUPER IMPRESSIVE AND ENGAGING AND HAS TAKEN OVER
LARGE PARTS OF THE MEDIA AND SOCIAL-MEDIA LANDSCAPE'S
ALREADY. DON'T KNOW WHAT IS GOING TO
HAPPEN. IT DOES SEEM TO BE BIPARTISAN,
MORE SO THAN MOST ISSUES THESE DAYS. SO IT'S GOING TO BE
INTERESTING. I HOPE OF THE RIGHT THING
HAPPENS THERE. ED: THAT WAS CANDLE MEDIA CO-CEO
KEVIN MAYER. CAROLINE: WHAT A WIDE-RANGING
CONVERSATION. BRILLIANT, ED. WE GOTTA SWITCH GEARS, BECAUSE
IT'S EARTH DAY. HAPPY EARTH DAY. THE LATEST CLIMATE TECH IN
VENTURE CAPITAL. FOR TODAY'S VC SPOTLIGHT,
SUSTAINABILITY AS A SERVICE. THAT IS YOUR UNDERPINNING.
WHAT DOES IT LOOK LIKE? >> IT'S A GREAT QUESTION.
I WILL DISSECT THE QUESTION ABOUT SUSTAINABILITY BECAUSE
THERE IS SO MUCH PUBLIC RHETORIC ABOUT WHAT IT MEANS.
WE ARE TRYING TO TACKLE HOW DO WE PRODUCE MORE OR THE SAME
WITH LESS. THERE IS NEW TECHNOLOGY THAT
ARE TRYING TO COMBAT THIS, BUT THE WAY WE THINK ABOUT THIS IS
HOW CAN WE INVEST IN CONSTRUCTION INFRASTRUCTURE,
SUPPLY CHAIN SOFTWARE, NEW DATA PLATFORMS THAT ALLOW US TO BE
MUCH MORE SUSTAINABLE IN AN ECONOMIC WAY.
THAT IS WHY WE LANDED ON THIS TERM, THE NEW SAS,
SUSTAINABILITY AS A SERVICE. CAROLINE:
YOU HAVE BEEN RAISING A LOT OF MONEY AND THERE'S STILL A LOT
OF MONEY FROM THE FUND TO ALLOCATE GOOD WHERE ARE THE
PRIORITIES TO BE PUTTING MONEY, OR YOU MAKE THE MOST IMPACT FOR
HOW I INTERACT AS A CAPITALIST? SITA: IT'S A GREAT QUESTION.
WE ARE STILL INVESTING OUT OF OUR FIRST FUND, BUT WE ARE
FOCUSED ON OUR SECOND FUND RIGHT NOW. CAROLINE:
HOW BIG IS THAT SECOND FIND THAT? SITA:
OUR SECOND FUND TARGET IS 80. THE THING A LOT OF CONSUMERS
STRUGGLE WITH IS HOW CAN YOU REALLY CAPITALIZE ON YOUR
INDIVIDUAL PURCHASES OR ACTIVITIES.
ONE OF THE THINGS WE ALWAYS COME BACK TO IS SUSTAINABLE
SOLUTIONS ARE NOT REALLY LONG-TERM SUSTAINABLE IF THEY
ARE NOT COST EFFECTIVE AND THEY DON'T REALLY -- IF THEY DON'T
REALLY INHIBIT THE CONSUMER'S LIFE THAT DRASTICALLY ON A
DAY-TO-DAY WE ARE SITTING IN A BLOOMBERG OFFICE AND WE LIVE IN
A CAPITALIST SOCIETY. WE NEED TO FOCUS ON INVESTMENTS
AND SOLUTIONS THAT DON'T TOTALLY CHANGE THE WAY WE
BEHAVE, AT LEAST NOT SO DRASTICALLY. A LOT OF THE TIMES AS AN
INVESTOR WE ARE THINKING ABOUT HOW WE EVALUATE -- NOT
NECESSARY FOR HIM? CHAMBERS OF YOU NEED TO BE
NANCY WROTE -- NOT NECESSARILY FROM THE ECHO CHAMBER OF YOU
NEED TO BE NET ZERO TOMORROW. ED: SITA, WE HAVE DONE A LOT OF
REPORTING ABOUT NEW FUNDS THAT ARE FOCUSED ON MANUFACTURING,
INDUSTRIAL FUNDS, BUT THEY HAVE THE SAME THESIS.
JUST VERY SPECIFICALLY, WHAT IS THE OPPORTUNITY FOR YOU? IS IT ON SOME THING TANGIBLE,
HARDWARE OR ARE YOU LOOKING AT A SOFTWARE APPLICATION AS WELL?
SITA: WE ARE DEFINITELY LOOKING ACROSS BOTH AREAS, BUT OUR
PERSONAL BIASES TOWARDS THE LATTER.
THE GENESIS OF THE FUND STUDY BECAUSE WE FELT LIKE THERE WAS
A LOT OF CAPITAL BEING DEPLOYED INTO THE BROAD CLIMATE CRISIS
OR THE SUSTAINABILITY TRANSITION, FROM A SHARE VOLUME
STANDPOINT THE VAST MAJORITY OF THE CAPITAL WAS GOING INTO HARD
ASSETS, LONG-DURATION, SLIGHTLY RISKIER BETS.
WHILE THAT IS A SUPER NOBLE AMBITION, AND I'M SO HAPPY TO
KNOW THAT FUNDING IS OUT THERE FOR THOSE INITIATIVES, AT THE
END OF THE DATE THE TRANSITION IS KNOCKING HAPPEN JUST BECAUSE
WE HAVE THE DECADE-DEFINING TECHNOLOGIES. WE NEED THE PICKS AND
SHOVELS, THE POINT I WAS MAKING AROUND SOFTWARE THAT
WILL ACTUALLY CONNECT THE DOTS BETWEEN THE NEW TECHNOLOGIES
THAT EXIST AND THE END USER, BE IT THE CONSUMER BUSINESSES.
WE HAVE A STRONG BIAS TOWARDS INVESTING IN THESE SLIGHTLY
MORE SCALABLE, MUCH MORE SOFTWARE-FOCUSED OPPORTUNITIES.
ED: WHAT IS THE PITCH TO LP'S? VERY QUICKLY, HOW DO YOU SELL
THE VISION? SITA: I'M PROBABLY GOING TO STAY AWAY
FROM THAT BECAUSE WE TRY TO KEEP THOSE CONVERSATIONS IN
PRIVATE, BUT ALSO MORE SO IT REALLY DEPENDS ON WHAT YOUR
PERSPECTIVE IS ON THE TRANSITION.
OUR STANCE IS VERY MUCH THAT OVER OUR LIFETIME, ONE OF THE
GREATEST TRANSITIONS OR GREATEST PROBLEMS IS THE
SUSTAINABILITY TRANSITION. AS A FUNCTION OF THAT, IT IS
ONE OF THE GREATEST WEALTH-CREATION OPPORTUNITIES.
WE NEED TO BE ABLE TO FIND WAYS IN WHICH WE CAN INVEST IN THAT
TRANSITION IN A MUCH MORE ASSET-LIGHT WAY, A WAY THAT IS
MORE TANGIBLE. TO GO BACK TO THE THESIS A
LITTLE BIT, OR TO ANSWER CAROLINE'S FIRST QUESTION
AROUND CONSUMERS, IN THE U.S., WHERE WE SIT, AND THIS IS AKIN
TO A LOT OF DEVELOPED COUNTRIES, THE BIGGEST
SHAREHOLDER OF THE ECONOMY, THE BIGGEST STAKEHOLDERSW ARE
CONSUMERS. WE HOLD OVER 70% OF THE GDP.
ON AGGREGATE THIS IS A MASSIVE MOVING POWER MECHANISM, AND
CONSUMERS IF WE ARE FORCED TO CHANGE EVERY FACET OF OUR
LIVES, WHAT WE DO, HOW WE SPEND OUR TIME, AND WE MOVED, IT
FORCES BUSINESSES TO CHANGE THE WAY THEY DO BUSINESS, AND THAT
IS THE ESSENCE OF HOW WE THINK ABOUT THIS SPACE. CAROLINE:
THAT IS WHY YOU ARE IN COMPANIES LIKE COWBOY, HOW WE
EAT, HOW WE CONSUME. SIAM CAPITAL FOUNDER, THANK YOU
FOR BEING WITH US, SITA CHANTRAMONKLASRI.
WHAT DO WE HAVE COMING UP? ED: ANOTHER BIG STORY, SALESFORCE
TALKS WITH INFORMATICA FIZZLE OUT.
THIS IS "BLOOMBERG TECHNOLOGY." ED: DATA MANAGEMENT COMPANY
INFORMATICA SAYS IT IS NOT ENGAGED IN TAKEOVER TALKS
FOLLOWING REPORTS THAT DISCUSSIONS WITH SALESFORCE HAD
COOLED. LET'S GET THE ANALYSIS FROM
BLOOMBERG INTELLIGENCE. THAT WITH THE CHRONOLOGY,
BLOOMBERG REPORTED THERE WERE TALKS AND THEN BLOOMBERG
REPORTED THEY COOLED SPECIFICALLY OVERPRICED AS THE
STICKING POINT -- COOLED SPECIFICALLY OVER PRICE AT THE
STICKING POINT. NOW INFORMATICA CESSNA
TALKED.-- SAYS NO TALKS. >> WE ARE HAPPY THERE IS NO
DEAL FOR SALESFORCE'S SAKE. INFORMATICA IS NOT GROWING AT
THE SAME RATE THAT SALESFORCE IS. IT STAYED AWAY FROM DEALS, FOCUSED ON MARGINS, FOCUSED ON
ORGANIC GROWTH RATE, AND I AM HOPEFUL THEY WILL STICK TO THAT
AT LEAST FOR THE NEAR TERM, BECAUSE AS YOU REMEMBER, THIS
WAS THE BIGGEST CRITICISM FOR SALESFORCE FOR SEVERAL YEARS,
THAT THEY MOVE INTO SLIGHTLY PROFITABLE TERRITORY AND THEN
THEY GO OUT AND BUY SOMETHING BIG AND SHAREHOLDERS DON'T GET
THE BENEFIT OF THE LEVERAGE THAT COMES. CAROLINE:
TO THAT END, THIS IS GOING TO BE THE BIGGEST DEAL SINCE SLACK
BEING BOUGHT FOR $27 BILLION. WHAT WAS IT THEY WANTED TO ADD,
AND WHAT WOULD YOU WANT THEM TO ADD ORGANICALLY IF NOT IN
ORGANICALLY? ANURAG: SALESFORCE HAS NO SHORTAGE OF
OPPORTUNITIES IN THE LONG RUN. THEY HAVE A MASSIVE CUSTOMER
BASE ON AUTOMATION AND CUSTOMER SERVICE.
WHAT THEY HAVE TO DO IS MAKE SURE THESE PRODUCTS WORK WELL.
WHEN THEY WERE LOOKING AT BUYING INFORMATICA, THEY BOUGHT THE COMPANY C A FEW YEARS AGO
THAT DOESN'T STUFF THAT IS SIMILAR TO INFORMATICA.
INFORMATICA IS SLIGHTLY LARGER WHEN IT COMES TO THAT, BUT
HONESTLY, SALESFORCE REPORTED THAT IT GREW 22% THE LAST TIME
WE HAD TO THE NUMBERS. THAT IS A MASSIVE GROWTH RATE
FOR A COMPANY INTERNALLY, WHAT THEY ARE DOING ON DATA
MANAGEMENT. INFORMATICA, ON THE OTHER HAND,
IF YOU LOOK AT CONSENSUS IS GROWING AT SIX, 7%.
I'M SURPRISED THAT THEY WERE EVEN CONSIDERING IT AT THIS
POINT GIVEN ALL THE OPPORTUNITIES THEY HAD
ORGANICALLY. CAROLINE: ANURAG, SO GREAT TO GET YOUR
PERSPECTIVE ON WHY YOU LIKE THE IDEA THAT M&A ISN'T GOING TO
CONTRAST AT -- ISN'T GOING THICK AND FAST. BUSY, BUSY
MONDAY. WE ARE TALKING TIKTOK, TALKING
YOUR BIG TAKE, A MUST-READ, ED. ED: IT IS ALL HAPPENING AT ONCE.
I THINK IT IS GOING TO BE A MASSIVE WEEK.
TESLA MASSIVE, OBVIOUSLY. THE SHOW IS AN IMPORTANT WAY TO
START THE WEEK. SO MANY OF YOU ARE LISTENING TO
THE SHOW IS A PODCAST ON THE WAY TO WORK, ON THE WAY HOME,
WHEREVER YOU ARE IN THE WORLD. GET IT ON APPLE, SPOTIFY,
IHEART. FROM NEW YORK CITY AND SAN
FRANCISCO, JOIN US FOR THE NEXT FOUR DAYS FOR THE THIS IS
"BLOOMBERG TECHNOLOGY." ♪
