'Bloomberg Technology' Full Show (03/01/2023)
>> I AM CAROLINE HYDE AT BLOOMBERG'S WORLD HEADQUARTERS IN NEW YORK. >> I AM ED LUDLOW IN SAN FRANCISCO. >> TESLA INVESTOR THAT KICKS OFF AND WE BRING YOU EVERYTHING YOU NEED TO KNOW FROM ELON MUSK'S BIG EVENT.
>> WE WILL BRING YOU A CONVERSATION WITH THE CEO OF COINBASE AMID A BROAD REGULATORY CRACKDOWN ON THAT INDUSTRY AS THE SEC EYES THE COMPANY'S PRODUCT. >> PLUS, G. NAMING THEIR NEW LEADER. ALL OF THAT IS SO MUCH MORE COMING UP. FROM PRIVATE MARKETS TO PUBLIC, WE CHECK IN ON WHAT WAS A SLIGHTLY DOUR MOOD AND THE OVERALL EQUITY BENCHMARKS. SOME OF THAT MANUFACTURING DATA IN THE U.S.
SHOWING THE PRICES ARE STILL RISING FURTHER THAN THE FEDERAL RESERVE. WE WANT TO SEE THE 10-YEAR YIELD. INTERESTING THAT CHINA MANAGED TO HAVE A PRETTY STRONG DAY. I AM LOOKING AT THE GOLDEN
DRAGON. EVEN THOUGH THE RISK ASSETS HAVE BEEN SELLING OFF OF IT. >> FOR THE MACROS AND THE MICRO, -- SALESFORCE KNOCKING IT OUT OF THE PARK. THE SHARES ARE UP OVER 14%.
GIVE US A FULL YEAR 24 HOUR OUTLOOK. LOOKING AT THE FISCAL FIRST QUARTER AND REVENUE ABOVE EXPECTATIONS, OTHER THAN A REACTION STATING THAT THIS IS EVIDENCE, A COMPANY MORE FOCUSED ON PROFIT. ONE STOCK WE HAVE TO PAY CLOSE ATTENTION TO IS TESLA.
TESLA IS HOLDING ITS INVESTOR DAY OUT IN AUSTIN AFTER HOURS. THERE IS NO ONE BIG HEADLINE TO SPEAK OF. SEAN OK AND COVERS TESLA FOR US AND IS IN AUSTIN. >> WE HAVE A PRETTY BIG HIGH-LEVEL PICTURE FROM ELON MUSK AND WE KNOW ABOUT THE MACRO VIEW OF HOW THEY THINK THEY CAN SHIFT THE ENTIRE ECONOMY TO THE SUSTAINABLE ENERGY ECONOMY. THERE ARE ONLY GETTING INTO WHAT THAT WILL MEAN FOR TESLA AS A COMPANY.
>> THE SECOND MASTER PLAN HAS NOT BEEN ENACTED YET. >> YES. THIS IS NOTHING THAT ELON MUSK LIKES TO DO. IT IS A WAY OF GUIDING INVESTORS.
THEY HAVE NOT FINISHED EXECUTING ON ALL OF THE IDEAS IN THE SECOND MASTER PLAN FROM 2016. THERE IS A MUCH BIGGER PICTURE HERE. QUICK THERE IS AN EMPHASIS ON WHAT IT TAKES.
>> THE LINE WAS GETTING THEM TO REQUIRE LESS MONEY IN AN ELECTRIFIED ECONOMY THAT WE CURRENTLY HAVE IN TODAY'S ECONOMY. >> THEY HAVE BEEN WORKING ON A LITHIUM REFINERY. IF THEY ARE WILLING TO COMMIT TO TALK TO SOME OF THAT STUFF, THERE WOULD BE SOME PRETTY BIG NEWS AS FAR AS HOW MUCH THEY ARE WILLING TO STICK THEMSELVES IN THIS ECONOMY. QUICKLY HAS SOME EXECUTIVES OUTLINING THE BATTLE SCARS. THEY HAVE SHOWN THAT PRODUCTION CAPABILITIES. WHAT MAY WANT TO SEE IS THE COST-CUTTING -- PRICE CUTTING AS A CHEAPER MODEL IN AND OF ITSELF.
>> IT IS GOING TO BE FOLDING AND ALL OF THESE THINGS THAT DEVELOPED OVER THE YEARS THEY HAVE BEEN BUILDING THESE MODELS, THESE EFFICIENCIES THEY HAVE BOLTED ONTO THE IDEAS -- CASTING GIANT PIECES AND PUTTING THEM ON HERE. BEING ABLE TO TAKE SOME OF THOSE LEARNINGS FROM THOSE PROGRAMS, THOSE VEHICLE PROGRAMS AND DOING FROM THE GROUND UP HERE. ESPECIALLY SCALE. >> SO GREAT TO GATHER CONTEXT FROM YOU. LET'S DIG EVEN DEEPER.
THE REASON IT IS IMPORTANT IS BECAUSE HE WAS ON THE TESLA BOARD WHEN ELON MUSK DEBUTED THE INITIAL MASTER PLAN. >> HERE IS WHY THIS IS A BIG DEAL TODAY. EVERY AUTO COMPANY IN THE WORLD IS GOING ALL ELECTRIC. THEY ARE SAFER, LOWER MAINTENANCE.
THIS HAS ONLY BEEN ONE BIG HEADWIND AND THAT HAS BEEN THE CROSS AND TESLA IS ABOUT TO CHANGE THAT. YOU CAN HEAR THEM ANNOUNCE A DRAMATIC REDUCTION IN MANUFACTURING COSTS. THAT COMES DOWN TO LOWER BATTERY COSTS. ALL OF THIS LEADS TO LOWER COST. I BELIEVE WHAT WILL
HAPPEN WILL BE DRAMATIC. I THINK TESLA HAS BEEN TRIGGERED , A GLOBAL PRICE WAR. IT WILL MAKE FOR CONSUMERS -- DEADLY FOR SOME OF THE COMPETITION.
WHAT PEOPLE DON'T UNDERSTAND IS TESLA MAKING CARS IN 10 HOURS VERSUS 30 HOURS. TESLA IS THE ONLY COMPANY TO DROP PRICES IN A MAJOR CONSOLIDATION. >> HOW LOW CAN THEY THINK OF A CHEAP AUTO? QUICK THEY ARE LEADING THE RUDDER BATTERIES. BIGGER STAMPING, FEWER PIECES, FASTER PRODUCTION. GM, FORD, TRYING TO BUILD A NEW PLANT THERE. >> YOU MAY HAVE SEEN MY REPORTING LAST WEEK THAT ROSCOE OVERHEAD -- HAS SUSPENDED HIS ATTEMPTS TO GAIN A BOARD SEAT IN PART BECAUSE TESLA HAD MOVED TO ALLAY SOME OF HIS FEARS.
I AM LOOKING AT THE SPEAKER SO FAR. THE CFO OPENED UP THE SHOW. DID SPEAK. HOW MUCH DO YOU THINK THIS IS THEM? >> JUST LOOK AT FACTS. EVERYBODY ELSE. ONE OR TWO EV PLANS UP AND RUNNING.
NOBODY ELSE HAS THE CAPACITY TO GROW LIKE TESLA WELL THIS YEAR. NO OTHER AUTO COMPANY IS COMING CLOSE TO 50% GROWTH. AT THAT THE HIGHEST LEVEL OF PROFITABILITY. THIS IS A TOUGH STORY TO BEAT. THERE WAS ONE OF THE STORY
ALMOST NOBODY HAS TALKED ABOUT TODAY. YOU WILL HEAR ELON AND THE TESLA GROUP. THEY AREN'T AUTO AND AN ENERGY COMPANY AND WHAT THEY HAVE TO SELL IS POWERFUL. TESLA AND TESLA ALONE CAN SELL YOU THE ELECTRIC CAR, SOLAR PANELS FOR THE ROOF, POWER WALL FOR YOUR HOME.
>> HOLD ON. AS CAROLINE POINTED OUT EARLIER, A LOT OF THIS IS THE MASTER PLAN VIDEO TWO. WE TAKE SOME OF THIS WITH A GRAIN OF SALT BECAUSE WE MIGHT NOT SEE IT MATERIALIZE FOR ANOTHER DECADE. >> I WILL NOT TELL YOU ELI WILL KEEP THE PROMISE BUT EVEN WHEN HE FINALLY GETS THERE -- THEY HAVE ALREADY OFFERED SOLUTIONS AROUND THE COUNTRY.
THIS IS 1.5 MEGAWATTS. IT IS ALL ROLLING OUT NOW. THE BIG PICTURE TODAY -- IT IS MORE OF AN AUTO COMPANY. IT IS MOVING PRETTY FAST FOR AN AUTO COMPANY AS IS.
>> ALSO, DIFFICULT. HOW WILL THE MOVEMENT BE HINDERED BY ACCESS TO LITHIUM AND COBALT? >> FOR FIVE YEARS AGO, WE ALL HEARD IT. THERE WERE LITHIUM IS ALL OVER CALIFORNIA AND THE WESTERN HALF OF THE U.S.. IT WAS THOSE RARE EARTH MINERALS LIKE COBALT MEGAN HUGHES. THE MARKET IS RESPONDING.
ELON AND THE TESLA TEAM RESPONDED. >> THEY ARE WEARING OUT WHAT IS BEST FOR THEM. THE STOCK IS UP MORE THAN 60% YEAR-TO-DATE. THE AUDIENCE RELATIVELY SPLIT. TO YOUR MIND, BASED ON HOW MUCH YOU HURT, HOW HIGH IS THE BAR HERE FOR TESLA TO PROVE BIG THINGS ARE COMING? >> LAST WAS A BADGER FOR TESLA. THEY WERE CAUGHT UP IN HEADLINES ABOUT TWITTER.
THAT PUSHED THE SHARE PRICE DOWN. LOOK AT THE BORING STUFF LIKE THE NUMBERS. HUGE PROFITABILITY. INSIDE THE FACTORY IS MOST PEOPLE CAN SEE, YOU WILL HEAR THIS AGAIN AND AGAIN ABOUT STATE-OF-THE-ART MANUFACTURING IMPROVEMENTS. JUST LOOK AT THE PROFITABILITY FOR A VEHICLE.
THAT WILL TAKE THE PRICES DOWN ROUGHLY 15% AS THEY TAKE THEM DOWN ANOTHER 15%. >> HERE WE ARE AT MASTER PLAN PART THREE. WE WILL SEE HOW IT GOES. ANOTHER EV NAME, RIVIAN PLUNGING NEARLY 20%, THE BIGGEST DROP SINCE LAST MAY. THE COMPANY'S FORECASTING THEY WILL BUILD 50,000 EV'S. THAT WAS WELL BELOW THE STREET
EXPECTATIONS. THIS IS STILL A SUPPLY CHAIN ISSUE THAT HAD SUCH BIG BACKERS. >> WE WILL BE DISCUSSING COMPANIES THAT COULD SOON BE PUBLIC. IS IT ALL ABOUT NEW YORK? THIS IS BLOOMBERG. ♪ >> THE CHIP GIANT BACKED BY SOFTBANK FORCED PLANS FOR A LONDON STOCK EXCHANGE LISTING AND FOCUSED SOLELY ON AN IPO IN NEW YORK. THIS ACCORDING TO BLOOMBERG'S
SOURCE. CRYSTAL, WHAT IS THE THINKING BEHIND THIS? >> IS BASED IN ENGLAND AND ONE OF THE CROWN JEWELS OF THE EUROPEAN TEXANS. THE PLAN IS TO HAVE A PRIMARY LISTING. THEY WILL FOCUS SOLELY ON THE NEW YORK LISTING.
OBVIOUSLY, A HUGE LOSS FOR LONDON. I AM SURE THEY WILL HAVE EVEN MORE ISSUES TRYING TO GET THEM BACK. WHY WOULD A DEEPER MARKET MEAN THEY WOULD VALUE THE COMPANY DIFFERENTLY? >> YOU CAN LOOK AT THAT TEARS. IF YOU LOOK AT OVERALL MARKET LIQUIDITY, WE HAVE MORE INVESTORS THAT HAVE THE U.S. POCKET AND THEY HAVE MORE LEEWAY TO INVEST AS A COMPANY.
MOST OF THIS IS STILL THEORETICAL. THERE IS NO IPO MARKET. WE ARE TALKING ABOUT HOW IT WOULD BE ANOTHER COUPLE OF MONTHS, ANOTHER COUPLE OF WEEKS UNTIL THINGS COME BACK. WHATEVER THIS IS, IT WILL HOLD OFF. WE WILL NOT KNOW THE ACTUAL VALUATION. >> LONDON TRIED VERY HARD TO WIN THIS BUSINESS. WHAT WE KNOW ABOUT THOSE EFFORTS? MUCH LIKE CAROLINE SAID, TRYING TO PITCH A COMPANY.
HE WAS A FORMER GOLDMAN PERSON. THEY HAD VERY PUBLICLY SAID THEY WORKED VERY HARD AND THEY WANT THE ENERGY TO WIN THIS DEAL. IT SEEMS LIKE IT HAS NOT BEEN A HUGE WIN. >> IS THERE ANYWAY THIS IS RELATED TO BREXIT? >> WE HAVE NOT HEARD ANYTHING ABOUT THAT BUT IT WOULD NOT BE OUTRAGEOUS IF BREXIT WAS ONE OF THE CONSIDERATION. IT IS DEFINITELY AN INVESTMENT COMING INTO THE U.K.. ESPECIALLY WHEN YOU HAVE A PROFESSIONAL HAVING TO RELOCATE.
YOU SEPARATE THE MARKETS MORE. COMPARED TO NEW YORK, IS NOT AS DEEPER MARKET. >> GREAT TO HAVE HER COVERING THIS POTENTIAL IPO COMING UP. >> ALL OF THIS AND MORE IN THE VC ROUND UP, THAT IS NEXT.
>> I WANT TO GET BACK TO THE SHARES OF SALESFORCE. PUSHING EVEN HIGHER. THE COMPANY IS FULLY DISBANDING ITS M&A COMMITTEE. SALESFORCE IS DOING WHAT THE ACTIVISTS INVESTORS WANTED TO HEAR. THIS IS WAY ABOVE WHAT THE STREET WAS LOOKING FOR.
THAT CALL UNDERWAY. WE WILL CONTINUE TO TRACK IT. IS BLOOMBERG. ♪ >> TIME FOR OUR VC ROUNDUP. THEY ARE SETTING THE SHARE PRICE AROUND $20 THAT IS DOWN FROM 23 A SHARE. THE GRAND SLAM TITLE HOLDER WILL TAKE ON THE BILL OF OPERATING PARTNER AT THE MIDMARKET INVESTMENT SHOP. THIS IS AS PE IS SLOWING THE ECONOMY WITH TIGHTENING CREDIT MARKETS.
ALEX RODRIGUEZ AND HIS BUSINESS PARTNER HAVE RAISED ANOTHER $20 MILLION. WE HAVE A STORY THAT WE WILL BE WATCHING IN THE PUBLIC MARKETS. >> WE WILL GET BACK TO SALESFORCE AND WE HAVE COMING UP. THE EARNINGS CAUSE WILL PUSH HIGHER IN AFTER HOURS. I THINK THE FOCUS THROUGH INVESTORS IS BENIOFF IS DOING WHAT THEY ASKED HIM TO. QUESTION MIGHT STILL BE SPENDING ON MNA. ULTIMATELY, THIS IS APPEASING.
QUICK THINK ABOUT SELECT, THINK OF THE -- SALESFORCE IS FULLY DISBANDED. STICK AROUND FOR A LIVE CONVERSATION WITH SALESFORCE CEO MARC BENIOFF. AND EMILY CHANG IN JUST OVER ONE HOUR'S TIME. COMING UP, ALPHABETS INDEPENDENT GROWTH FUND NAMES A NEW LEADER. THE NEW MANAGING PARTNER JOINS US NEXT ON THAT BIG INDUSTRY NEWS. THIS IS BLOOMBERG. THESE ARE NOTE -- THIS IS BLOOMBERG. ♪
>> GETTING A MUCH MORE SEVERE DECLINE IN THE EARNINGS. THAT IS GOING TO HAPPEN ACROSS THE ECONOMY. IT HAS BEEN MOST APPARENT IN THE TECH SPACE BECAUSE THAT'S WHERE THE OVERINVESTMENT WAS THE MOST EGREGIOUS AND NOW WE ARE SEEING COMPANIES DEAL WITH THAT BUT WE THINK THEY ARE GOING TO BE WOEFULLY SLOW TO GET THE COST DOWN TO A LEVEL WITH INK THEY NEED TO TO GET THE MARGINS TO STABILIZE. ED: WELCOME BACK TO BLOOMBERG TECHNOLOGY. THAT WAS MIKE WILSON FROM MORGAN STANLEY EARLIER THIS MORNING.
BIG NEWS, GOOGLE'S GROWTH INVESTMENT FUND HAS NAMED A NEW LEADER. ONE OF THE ONLY WOMEN TO NAME -- TO LEAD A MAJOR VENTURE FIRM. I ASKED YOU THIS AND I WILL ASK YOU AGAIN, WERE YOUR PEERS SURPRISED BY THIS APPOINTMENT GIVEN YOUR HISTORY AT THIS FIRM? GUEST: I'VE BEEN INVESTING FOR 10 YEARS, SO I HAVE A NUMBER OF AMAZING COLLEAGUES AND PEERS IN THE INDUSTRY. IT'S BEEN AMAZING TO SEE THE SUPPORT AND OUTREACH TODAY. I DON'T NOT THEY WERE SURPRISED, BUT THEY WERE CERTAINLY SUPPORTIVE.
>> WE CAN GET INTO THE PORTFOLIO SOME OF THE INVESTMENTS YOU'VE MADE. THIS IS AN INTERESTING FIRM. A LOT OF CAPITAL TO PLAY WITH. WOULD YOU SAY THAT IN YOUR NEW POSITION OF LEADERSHIP, WILL YOU CHANGE THE INVESTMENT STRATEGY FROM WHERE IT HAS BEEN? >> WE WILL KEEP THE LINK ON THE SUCCESS WE HAVE HAD. WE ARE FOCUSED ON INVESTING IN GENERATIONAL GROWTH TECHNOLOGY COMPANIES.
REALLY AMAZING FOUNDERS, AMAZING COMPANIES OPERATING IN BIG MARKETS. WE MAKE VERY CONCENTRATED BETS. WE DO A LOT OF WORK TO FIND AND DEVELOP INVESTMENT THESES IN THE WORLD MOST EXCITING TECHNOLOGIES AND MARKETS AND COMPANIES THEN WE MAKE BIG INVESTMENTS. WE TYPICALLY INVEST UP TO 200 MILLION IN THESE COMPANIES AND WE PARTNER WITH THEM IN THE LONG HAUL. THAT HAS WHAT'S WORKED FOR US AND WE WILL CONTINUE TO FOCUS ON THAT STRATEGY TO KEEP BUILDING A GREAT TEAM AND KEEP HAVING A GLOBAL FOCUS. CAROLINE: YOU BACK THEM AND THE STORIES OF HOW COME AT THE COFOUNDERS THE CEOS THEMSELVES HAVE SAID HOW MUCH YOUR SUPPORT WAS INTEGRAL TO THE BUILDING OF THE BUSINESS.
ANOTHER ONE YOU WROTE A CHECK AT A SMALL VALUATION AND IT WENT PARABOLIC. THE WAY YOU HAD TO CHASE DOWN UI PATH, THAT'S NOT THE ENVIRONMENT WE ARE CURRENTLY IN OR LEE STILL HAVE TO BE THAT MUCH MORE COMPETITIVE THAN OTHERS? GUEST: THAT'S WHAT'S FUN ABOUT THE INVESTING WORLD IS WITH THE MACRO, THINGS ARE CONSTANTLY CHANGING. I DO BELIEVE YOU WILL STILL HAVE TO COMPETE AND WORK TO INVEST IN THE VERY BEST TECHNOLOGY COMPANIES. YOU CITED A FEW THAT I HAVE BEEN LUCKY TO PARTNER WITH.
THE PROCESS OF FINDING THESE COMPANIES DOES TAKE A LOT OF WORK. IT DOESN'T ALWAYS MEAN CHASING FOUNDERS AROUND THE WORLD, BUT IT MEANS DIGGING DEEP INTO INVESTMENT AND THE OPPORTUNITIES WE THINK GENERATE THE BIG RETURNS THAN ADDING VALUE TO THOSE COMPANIES. ONCE WE PARTNER AND MAKE AN INVESTMENT, WE WORKED REALLY HARD TO BE VERY ACTIVE BOARD MEMBERS AND TO FIND DIFFERENT WAYS TO SUPPORT THE COMPANIES WHICH IS SOMETHING THAT IS QUITE DIFFERENT ABOUT G BECAUSE WE HAVE A REALLY LARGE NETWORK OF INVITE ADVISORS INSIDE OF ALPHABET.
THEY ARE ADVISORS THAT WE CAN BRING TO PARTNER WITH OUR COMPANIES WHEN THERE ARE ISSUES OR CHALLENGES OF SCALING. IT'S A UNIQUE THING YOU CAN DO TO ADD VALUE. WE HELP WITH PRICING STUDIES, WE STARTED THE INSIDE SALES FOR CROWD STRIKE, SO LOTS OF CREATIVE WAYS WE TRY TO BE THE BEST PARTNER THAT WE CAN AND I THINK THAT WILL HELP US CONTINUE TO BE ABLE TO INVEST AND PARTNER WITH THE BEST FOUNDERS. CAROLINE: NOW YOU HAVE TO HELP COMPANIES SCALE BUT WITH PROFIT. I THINK OF STRIPE OF COURSE, EVEN WITH THE POTENTIAL DOWN ROUND IT'S STILL 50 MILLION, EXTRAORDINARY GROWTH FOR THIS PAYMENTS COMPANY. I WONDER WHAT ADVICE YOU NOW NEED TO GIVE LEADERS? GUEST: IT'S OBVIOUS TO EVERYONE THAT THE MACRO ENVIRONMENT HAS CHANGED OVER THE LAST 18-24 MONTHS.
COMPANIES ARE MUCH MORE FOCUSED ON PROFITABILITY BUT AT CAPITAL G AND ALL THE OTHER COMPANIES WE'VE WORKED WITH HAVE BEEN FOCUSED ON THE MODEL AND NOT ONLY GROWING QUICKLY BUT IN A WAY THAT BUILDS A SUSTAINABLE ENDURING BUSINESS. THE CAPITAL WILL BE EXPENSIVE AND HARDER TO FIND FOR MOST COMPANIES, BUT THOSE THAT HAVE REALLY STRONG BUSINESS MODELS WILL BE ABLE TO CONTINUE TO RAISE AND GROW AT REALLY ACCELERATED RATES. WHEN YOU LOOK BACK HISTORICALLY THROUGH THE LAST FEW DOWNTURNS AND THROUGH CAPITAL MARKETS THAT WERE HARDER, YOU WILL SEE SOME OF THE BEST COMPANIES WERE FOUNDED FUNDED AND GREW RAPIDLY IN THE STAGES. ED: THE THIRD PARTY DATA SHOWS A DROP IN ACTIVITY 2021 TO 2022 BUT WE HAD MATT HARRIS FROM BAIN CAPITAL VENTURES SAYING THIS IS A BUYING OPPORTUNITY, THEY WANT TO BE OUT THERE WRITING CHECKS. GUEST: I COMPLETELY AGREE.
THE REALITY IS THE MACRO ENVIRONMENT HAS BROUGHT DOWN PRICES BUT THERE IS STILL THE QUALITY OF COMPANIES EXPORT NEARLY HIGH. -- EXTRAORDINARILY HIGH. THE SECULAR TRENDS LIKE CLOUD COMPUTING DATA AI DRIVING REALLY EXCITING OPPORTUNITIES AND TRANSFORMING BUSINESSES AND CREATING LARGE NEW OPPORTUNITIES AND YOU SEE SO MANY MORE BUSINESSES OUT THERE LOOKING FOR FUNDING THAT ARE REALLY ADDING VALUE TO CUSTOMERS THAT ARE GROWING IN MORE EFFICIENT WAYS AND THE VALUATIONS OF GONE DOWN. EVEN THOUGH IT'S A HARDER MACRO ENVIRONMENT, WE LOOK AT THIS AS A TIME WHERE WE THINK WE CAN MAKE SOME OF OUR BEST INVESTMENTS. ED: IT WOULD BE REMISS OF ME NOT TO ASK THE INFORMATION REPORTED 24 HOURS AGO THAT STRIPE HAS CUT ITS VALUATION BY 10%. YOU ARE INVOLVED OR HAVE DONE
PRIOR ROUNDS WITH THAT COMPANY. WHAT IS YOUR RESPONSE TO THAT REPORT? GUEST: I WILL COMMENT ON ANY FUNDRAISING ROUND OF ANY OF OUR PORTFOLIO COMPANIES, BUT I WILL SAY STRIPE IS AN INCREDIBLE COMPANY. I LOVE BEING INVOLVED. I BELIEVE THAT IT'S ONE OF THE BIGGEST MARKETS AND BEST TEAMS IN TECHNOLOGY. I'M EXCITED TO BE A PART OF IT AND I THINK THERE IS A LONG LONG LONG RUN WAY AHEAD. ED:
YOU APPRECIATE WHY WE HAVE TO ASK THE QUESTION. YOU MENTIONED AT THE BEGINNING GLOBAL AND WE ZEROED IN ON THAT. WHERE ARE YOUR OPPORTUNITIES OUTSIDE THE UNITED STATES RIGHT NOW? GUEST: ONE OF THE EXCITING THINGS IS THAT TECHNOLOGY TEAMS HAVE BEEN GOING AFTER GLOBAL MARKETS AND GROWING GLOBALLY FOR A LONG TIME.
IF YOU LOOK AT SOME OF OUR MOST EXCITING INVESTMENTS LIKE UI PATH, THESE ARE SOFTWARE COMPANIES THAT WERE FOUNDED OUTSIDE THE U.S.. I THINK YOU SEE MOST BIG SOFTWARE MARKETS, THOSE COMPANIES ARE ALL GROWING THEIR TEAMS INTERNATIONALLY AND GROWING CUSTOMERS INTERNATIONALLY MUCH EARLIER IN THEIR GROWTH CYCLE THAN THEY USED TO. WE LOOK FOR THOSE FOUNDING TEAMS WHEREVER THEY ARE STARTING. WE HELP PARTNER WITH THEM TO GROW THEIR ORGANIZATIONS AND THEIR MARKETS GLOBALLY. THAT IS ONE EXAMPLE. WE HAVE ALSO INVESTED IN SEVERAL COMPANIES IN INDIA, CHINA, AND ELSEWHERE SO WE SEE OPPORTUNITIES AND LOTS OF DIFFERENT MARKETS THROUGHOUT THE WORLD. CAROLINE: CHINA STILL?
GUEST: CHINA WE HAVE BEEN SPENDING LESS TIME ON. WE HAVE MADE INVESTMENTS THERE IN THE PAST. WE BEEN SPENDING LESS TIME THERE. CAROLINE: FROM GEOGRAPHY INTO INDUSTRY GROUP, BECAUSE THE BREATH OF YOUR PORTFOLIO THE FACT THAT YOU ARE BE TO BE -- B2B, B2C, INFRASTRUCTURE AND LANGUAGE LEARNING IN MANY WAYS, I'M INTERESTED IN WHERE YOU'RE LOOKING. IT'S ARTIFICIAL INTELLIGENCE SWEET SPOT OR WHERE ELSE DO YOU THINK IS ENTICING? GUEST: LUCKILY FOR US, WE HAVE A LARGE FUND AND A DIVERSE AND FANTASTIC GROUP OF GENERAL PARTNERS. WE ARE ABLE TO COVER A WIDE VARIETY OF SECTORS WITHIN TECHNOLOGY. WE SPEND A LOT OF TIME AT
CYBERSECURITY, DATA, BUSINESS PROCESS OPTIMIZE -- OPTIMIZATION AS WELL AS CONSUMER MARKETPLACES, COMMERCE, AND ARTIFICIAL INTELLIGENCE. WE SEE OPPORTUNITIES AND LOTS OF DIFFERENT PLACES. WE HAVE INVESTED IN DATA BRICKS, BUSINESS PROCESS AUTOMATION SPACE. ONE THING WE ARE EXCITED ABOUT IS THE GROWTH OF NO CODE SOFTWARE WHICH IS VISUAL APPLICATION PLATFORMS THAT MAKE IT EASIER FOR PEOPLE WITHOUT TECHNICAL BACKGROUNDS TO COME AND BUILD SOFTWARE DIFFERENT APPLICATIONS WHETHER IT'S A WEBSITE OR A MORE SOPHISTICATED BUSINESS PROCESS APPLICATION. SO A COMPANY LIKE WEBB FLOW. AI SPACE, THAT'S A PLACE WHERE WE ARE EXCITED WE CAN DIG INTO ADVISORS THAT WE HAVE WITHIN GOOGLE TO HELP US BUILD AND TEST OUR INVESTMENT THESES. WE THINK THAT AI IS SUCH A BIG OPPORTUNITY IS GOING TO BE A PLATFORM SHIFT WHERE THE NEXT GOOGLE, THE NEXT MICROSOFT IS GOING TO BE BORN AS WELL AS INCUMBENTS WHO HAVE REAL STRENGTHS ARE GOING TO INCORPORATE AI INTO THEIR BUSINESS PROCESSES. ED:
WHEN YOU FIND THAT BUSINESS YOU WILL HAVE TO COME BACK ONTO THE SHOW. WE DIDN'T EVEN GET FULLY INTO AI IN THIS CONVERSATION. CAROLINE, A BIG MOMENT FOR THIS INDUSTRY ACTUALLY. CAROLINE: EXTRAORDINARY AND WE THANK HER SO MUCH FOR COMING ON. LET'S STICK WITH EXECUTIVE CHANGES.
PAYPAL IS ON THE HUNT FOR THE NEXT CEO. THE COMPANY IS NOW WORKING HARD TO FIND THE REPLACEMENT. THE PAYMENTS FIRM IS ALSO TRYING TO RECOVER FROM A YEAR LONG SLIDE. COMING UP, LET'S GET INTO THE WORLD OF CHAT GPT.
FROM META TO TAPESTRY HOME DEPOT. WE HAVE TO DIG IN. ED: ANOTHER COMPANY, TESLA. THEY ARE NOW DOWN 2.7% AFTER HOURS. WE KNEW THE MASTER PLAN THREE WOULD BE A SELL THE NEWS TYPE EVENT. WE WILL BE TALKING ABOUT THAT FOR THE NEXT DECADE I'M TOLD. THIS IS BLOOMBERG. ♪
>> LET'S MAKE YOUR INVESTORS HAPPY. YOU JUST NEED TO START CHECKING UP ARTIFICIAL INTELLIGENCE. REFERENCES TO AI LABEL TERMS THIS EARNINGS SEASON UP 77%. META, MICROSOFT, ALPHABET, ZOOM ARE DOING IT. SOME OTHER COMPANIES, FASHION GIANTS LIKE TAPESTRY, EQUIPMENT MAKERS LIKE CATERPILLAR EVEN BANKS ARE DOING IT. NVIDIA THE CHIPMAKING COMPANY THAT HELPS YOU WITH THE COMPUTING POWER FOR AI TASKS, ITS STOCK IS THE BEST-PERFORMING ONE THIS YEAR IN TERMS OF MEGA CAPS.
AI IN THE NAME? BINGO. HOW ARE YOU GOING TO DISTINGUISH THE HYPE FROM THE REALITY? THE ADVICE IS STAY DISCIPLINED, UNDERSTAND WHAT THE BUSINESS ACTUALLY DOES. GET TO KNOW THE MANAGEMENT, UNDERSTAND THE COMPETITIVE MODE THEY HAVE AND UNDERSTAND WHAT THE VALUATION REALLY IS. CAROLINE: I MENTIONED A FEW OF THE COMPANIES THAT HAVE AI IN THE NAME. BIG BEAR AI IS UP 336%. BUZZFEED WHICH ANNOUNCED ITS OWN AI WITHIN ITS QUIZZES, UP 125%. IF WE LOOK AT WHICH SECTORS
MENTIONED AI THE MOST, OF COURSE YOU WILL THINK ABOUT THE TECHNOLOGY COMPANIES. BUT ACTUALLY EVERYONE IS PILING IN. FINANCIALS, WELLS FARGO IS OUT THERE. IS THERE ANY COMPANY OR -- THAT ISN'T TALKING ABOUT IT? ED: THE LEFT-HAND SIDE OF THE SCREEN SAYS IT ALL.
THE FUROR IN THE FIRST QUARTER OF HOW BONKERS THIS HAS GONE. THERE SECTORS THAT BY RIGHT YOU DON'T THINK SHOULD HAVE ANYTHING TO DO WITH AI. CAROLINE: BUT WHEN YOU DIG INTO THE NITTY-GRITTY COMING THEY DO. THE FACT YOU MIGHT BE USING AI TO ENSURE YOU'RE SELLING THE RIGHT HAND BACK AT THE RIGHT PRICE POINT.
THE WAY WE ARE SEEING HOME DEPOT EVEN CATERPILLAR A SO AHEAD OF ITS TIME, IT'S TRYING TO UNDERSTAND HOW AI CAN INFLUENCE THE WAY THAT PRODUCE AND MANUFACTURE EQUIPMENT. ED: THE COINBASE CEO SAYS HE IS PREPARED TO DEFEND THE COMPANY'S STAKING PRODUCT IN COURT. SHARES ARE DOWN 60% ON THE YEAR AS REGULATORS HAVE CRACKED ON CRYPTO PRACTICES. >> WE RECENTLY SAW THERE WAS A SETTLEMENT WITH KRAKEN AND HAVE STAKING PRODUCT IT WAS REALLY A YIELD PRODUCT.
OUR STAKING PRODUCT IS NOT A SECURITY. CUSTOMERS NEVER TURN OVER THEIR ASSETS TO COINBASE. THEY ARE ALWAYS IN THE CUSTOMERS'S POSSESSION AND WE ARE JUST PROVIDING A SERVICE THAT PASSES THROUGH THOSE COINS TO HELP THEM IN -- PARTICIPATE IN STAKING. THAT'S AN IMPORTANT PART OF THE CRYPTO ECONOMY WE WANT TO MAKE SURE WE ENSURE THAT'S OUT THERE. WE PREPARED TO DEFEND THAT IN
COURT IF WE NEED TO. WE WANT TO WORK COLLABORATE OF -- COLLABORATIVELY WITH REGULATORS ALL OVER THE WORLD. IN THIS CASE AT THINK WE ARE WITHIN THE RULE OF LAW.
>> IS THERE ANYTHING THAT YOU THINK WILL NEED TO GET TO THAT POINT? >> THE SEC HAS EXPRESSED THEIR VIEW ABOUT WHAT IS A SECURITY AND THEY'VE TAKEN AN EXPANSIVE VIEW OF THAT. COINBASE, WE HAVE EVALUATED OVER 1000 DIFFERENT ASSETS. 800 OF THEM WE HAVE REJECTED AND WE THINK THEY HAVE PROPERTIES OF BEING A SECURITY SO WE DON'T TRADE THOSE TODAY. ANOTHER 200 WE DO TRADE TODAY AND WE FEEL THOSE ARE COMMODITIES. WE JUST WANT TO HAVE A CLEAR
RULEBOOK. IF CLEAR RULES ARE PUBLISHED, WE ARE HAPPY TO FOLLOW IT AND IF THE RULES CHANGE, WE ARE HAPPY TO FOLLOW THOSE. WHEN WE BECAME A PUBLIC COMPANY, WE EXPLAINED TO THE SEC IN OUR FILING AND IN DOZENS OF MEETINGS THAT WE WORK -- COLLABORATIVELY WITH THEM.
WE WILL CONTINUE WORKING WITH REGULATORS ALL OVER THE WORLD ABOUT WHERE THE BOUNDARIES ARE ON A COMMODITY, SECURITY, OR SOMETHING ELSE. >> WE ARE TALKING ABOUT THE SEC AND STATE REGULATORS AS WELL. IN REGULATORY FILINGS, YOU'VE NOTICED YOU RECEIVED INVESTIGATIVE SUBPOENAS. HOW AND WHEN DO YOU GET THOSE RESOLVED? >> SUBPOENAS ARE JUST REQUESTS FOR INFORMATION.
WE ARE IN DIALOGUE WITH REGULATORS NOT ONLY HEAR IN THE U.S., BUT AROUND THE WORLD. IN EUROPEAN MARKETS, SINGAPORE, AUSTRALIA, CANADA MANY DIFFERENT MARKETS. SUBPOENAS ARE AN IMPORTANT PART OF THE PROCESS, THAT'S THEM ASKING FOR MORE INFORMATION AND WE ARE HAPPY TO DO THAT. ED: THAT WAS THE COINBASE CEO. SONALI BASAK WHO CANNOT -- CONDUCTED THAT INTERVIEW IS HERE WITH ME. MY QUESTION IS WHAT DID WE LEARN ABOUT THE HEALTH OF THAT BUSINESS COINBASE RIGHT NOW AND THE CRYPTO MARKET MORE BROADLY? >> ONE INTERESTING THING WAS THE IDEA THAT A LOT OF THE ASSETS ASSOCIATED WITH COINBASE, THEY HAVE THE CFTC AS A REGULATOR AND A LOT OF THESE ARE VIEWED AS COMMODITIES AS WELL. HE WAS PRETTY SPECIFIC ABOUT
HOW THEY CHOOSE NOT TO LIST ASSETS. ANOTHER INTERESTING POINT IS AS REGULATORS MOVE ON BEYOND TOKENS AND SECURITIES, YOU ARE ALSO ASKING ABOUT STAKING AND STABLECOINS, ANOTHER PART OF THE CRYPTO ECOSYSTEM THAT HELPED PROVIDE LIQUIDITY AND HELPED MOVE ASSETS FROM ONE PLACE TO ANOTHER. I THINK THE STABLECOIN QUESTION IS RELEVANT BECAUSE IT HAS A RELATIONSHIP WITH CIRCLE. THE RELATIONSHIP WITH REGULATORS IS INTERESTING FOR A LOT OF REASONS, BUT EVEN THOUGH WE HAVE SEEN A DECLINE OF THE YEAR OF COINBASE'S STOCK, IT'S INTERESTING THAT THEY ARE TAKING LOOK AT THINGS LIKE STAKING ACROSS THE INDUSTRY AND STABLECOINS ACROSS THE INDUSTRY. ED: THANK YOU SO MUCH. CAROLINE: LET'S HAVE A LOOK AT WHAT IS
HAPPENING IN THE WORLD OF TESLA. UP BY 2.3%. THIS IS THE MASTER PLAN .3. WE ANTICIPATED NEWS COMING AROUND THIS AS WE LOOK AT THE FUTURE OF THIS BUSINESS. OUTLINING HOW YOU CAN HAVE A MORE ENERGY-EFFICIENT WORLD.
TESLA AIMING TO CUT PRODUCTION COSTS UP TO 50% FOR THEIR OWN AUTOMOBILES. THE MARKET IS WANTING TO HEAR MORE. THIS IS BLOOMBERG. CAROLINE: THERE ARE BIG CHANGES COMING TO THE SHOW AND I MUST SO EXCITED. -- I AM SO EXCITED.
12 P.M. EASTERN 9:00 A.M. SAN FRANCISCO. ED: NO WORRIES, THIS IS WORTH GETTING UP FOR. YOU AND I HAVE LEARNED SO MUCH IN THE RECENT WEEKS ABOUT HOW IMPORTANT THE INTERPLAY IS BETWEEN PUBLIC AND PRIVATE MARKETS. THIS TIME, WE CAN EARN THAT SPACE. CAROLINE: MOVES IN THE PUBLIC AND PRIVATE BUT ALSO PEOPLE. I CAN'T WAIT TO GET INTO ALL OF.
ED: A QUICK LOOK AT TESLA BECAUSE THEY'RE INVESTOR DAY IS A PERFECT EXAMPLE. WE ARE TRACKING THE MARKET MOVES, IT'S A CRAZY STORY ABOUT MASTER PLAN PART THREE. CAROLINE: AFTER HOURS, STILL TRADING LOWER FOR TESLA. WE WILL GET INTO IT MORE TOMORROW, BUT THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. ED:
2023-03-02 16:22
