Airbnb's Record Plunge, Disney's Mixed Earnings | Bloomberg Technology
♪ ED: LIVE FROM SAN FRANCISCO, THIS IS "BLOOMBERG TECHNOLOGY." I SIT DOWN WITH THE CEO OF LYFT, PRESIDENT OF SHOPIFY. WE STICK WITH EARNINGS AS AIRBNB SEES A RECORD PLUNGE ON A EWAK OUTLOOK AND WE DIG INTO DISNEY AS THE MOUSE HOUSE OFFERS A MIXED PICTURE IN ITS EARNINGS. LET'S CHECK IN ON THE MARKETS. THE NASDAQ 100 UP FOR SECOND SECOND -- CONSECUTIVE DAY.
I TAKE THAT BACK. I AM WRONG. IT IS DOWN. HOW THINGS CAN CHANGE. THE STORY IS ABOUT MONETARY POLICY. ON A THREE-DAY BASIS WE ARE FLAT, SLIGHTLY HIGHER IN THE SESSION.
WE ARE STILL THINKING ABOUT MONDAY AND THE SELLOFF. OVERNIGHT, THE BANK OF JAPAN BASICALLY SAID WE WON'T INTERVENE WITH A RATE HIKE IN THE EVENT MARKETS AREN'T STABLE. THAT IS HAVING -- THERE'S ONE BIG TECH NAME MOVING AND THAT IS AIRBNB. CHECK OUT THIS CHART. IN THE SESSION, AIRBNB IS ON TRACK FOR ITS BIGGEST DROP EVER. WE ARE WORRIED ABOUT THE OUTLOOK , WHAT AIRBNB HAD TO SAY ABOUT ITS PEAK HOLIDAY SEASON EVEN THOUGH SOME EXECUTIVES TOOK TO THE SOCIAL MEDIA TO TELL US THINGS WERE ALL RIGHT.
LET'S TALK ABOUT AIRBNB. WHAT THEY SAID WAS MODERATION SEQUENTIALLY OF GROWTH. THE GROWTH WASN'T THAT GOOD IN THE QUARTER GONE.
IF YOU EXTRAPOLATE, ARE BASICALLY SAYING, THIS IS THE BEST TIME OF YEAR NORMALLY FOR AIRBNB. WE ARE WORRIED ABOUT WHAT THEY'RE SAYING ABOUT BUSINESS TRAFFIC. >> YOU ARE RIGHT. GIVEN A LOT GOING ON IN TERMS OF HOLIDAY PLANNING, THEY TALKED ABOUT SHORTENING BOOKING WINDOWS. TO ME, THE BIGGEST RISK WITH AIRBNB IS NOT THAT THEY DON'T HAVE -- IT IS MORE ABOUT THE SATURATION AND THE ACCOMMODATIONS MARKET.
WHATEVER NEW PRODUCTS THEY HAVE LAUNCHED WHETHER IT IS ROOMS OR EXPERIENCES WHICH THAT HAD FOR A WHILE HASN'T REALLY DRIVEN AND CRIMINAL GROWTH. WHAT THEY TOLD US LAST NIGHT WAS, LOOK, THE GROWTH WILL BE MID-SINGLE DIGIT. EVEN THE GROWTH WILL ACTUALLY TAPER OFF BECAUSE THEY PLAN TO INVEST MORE TO EXPAND SUPPLY IN NEW AREAS IN LATIN AMERICA AND ASIA. I THINK ALL THOSE ARE SIGNS TOWARDS PENETRATION BEING HIGH IN THEIR EXISTING MARKETS AND THEY JUST HAVE TO FIND NEW MARKETS IF THEY WANT TO KEEP GROWING ALTERNATIVE ACCOMMODATIONS OR PERHAPS THEY NEED TO MAKE AN ACQUISITION. ED: YOUR STOCK IS DOWN 12% TO 14%. WHAT DO YOU DO IF YOU ARE THE CEO? YOU GO ON SOCIAL MEDIA SITE IS A GREAT TIME TO BUY. WOULD YOU AGREE? >> HE HAD A TALK LAST OUT OF THE EARNINGS CLAIMS AND NOTHING WE HEARD WAS VERY EXCITING. LONG-TERM, AS I SAID, IT
CLEARLY IS A CATEGORY LEADER BUT CAN'T IT KEEP GROWING DOUBLE DIGITS? I THINK OUR QUESTION MARKS THEY CAN DO IT IN AT LEAST THE NEXT TWO TO FOUR QUARTERS. ED: THANK YOU. I WANT TO GET MORE ON THE MARKET OUTLOOK WITH EMILY. I DON'T KNOW ABOUT YOU, I AM KIND OF RECOVERING A BIT FROM MONDAY, THE TRAUMA OF AND YOUR 3% DECLINE ON THE NASDAQ 100. IN THE MARKET, THERE'S THE GROWTH CONCERN, THE CENTRAL BANK POLICY CONCERN AND THEN PROBABLY EARNINGS. WHAT IS THE OUTLOOK?
>> THE OUTLOOK IS THE VOLATILITY IS NOT EXPECTED TO SUBSIDE EVEN THOUGH WE ARE SEEING THIS MARKETS RALLY YESTERDAY AND AT LEAST TODAY. WHEN YOU LOOK AT THE VIX VOLATILITY INDEX, TYPICALLY WHEN WE SEE A SPIKE LIKE MONDAY, THAT MEANS FOR THE NEXT SEVERAL TRADING SESSIONS, EVEN UP TO WEEKS, WE WILL SEE THESE BIG UP DAYS AND DOWN DAYS. SMALLER CAP NAMES, VALUE NAMES A FEW WEEKS AGO. WE ARE SEEING THAT TRADE DISAPPEAR NOW NOW THAT MARKETS ARE RALLYING, TECHNOLOGY STOCKS ARE RALLYING THE MOST. YOU LOOK AT THE NASDAQ 100 AT LEAST TODAY, UP ALMOST 2%.
THE RUSSELL 2000 IS ONLY UP ABOUT .8% RIGHT NOW. A FEW DAYS AGO WE WERE TALKING ABOUT, IS TECH NO LONGER SAFE HAVEN? IS THAT NO LONGER PLACE INVESTORS WANT TO HIDE? IT SEEMS LIKE WE ARE STILL SEEING AN APPETITE TO BUY THOSE STOCKS. ED: NVIDIA DISTANT REPORT UNTIL AUGUST 28 AND EVERYONE IS KIND OF TREADING WATER UNTIL THEN. EMILY, THANK YOU. SOME OF THE WORLD'S BIGGEST EQUITY HEDGE FUNDS LOST HUNDREDS OF MILLIONS OF DOLLARS FROM PILING IN THE POPULAR TECH STOCKS AMID THE STOCK ROUTE THAT HIT MARKETS AROUND MID JULY. EMME PALMER HAS BEEN TRACKING IT.
THERE HAVE BEEN SPECIFIC NAMES IN THE INDUSTRY WHO WOULD PROBABLY MORE HIT THAN OTHERS. WHO ARE THEY? AND WHAT HAPPENED? >> WE SAW A LOT OF PAIN. DOWN 9% IN ONE MONTH ALONE OF JULY. STILL UP 40 FOR THE YEAR BUT
DEFINITELY A DIFFICULT MONTH. THAT IS LIKELY DUE TO THE VERY BIG POSITION IN NVIDIA BUST UP AS OF MARCH, THAT STOCK ACCOUNTED FOR ABOUT 17% OF THEIR PORTFOLIO. THEY HAVE SIZABLE STAKES ANOTHER BE IT NEGATIVE IT'S AT SEVEN. ONLY LOOK ACROSS THE WORLD, THE HEDGE FUND SPACE, ESPECIALLY THE EQUITY FUNDS, WE SEE CONCENTRATION THAT MICROSOFT, AMAZON, NVIDIA THAT HAVE STRUGGLED THIS MONTH. ED: HEMA PARMAR WITH THE DATA IN
THE HEDGE FUND OWNERSHIP A BIG APPRECIATE IT. COMING UP, WE WILL BE JOINED BY REDDIT'S COO JEN WONG. INTERESTING CONVERSATION. HEART OF SOME OF THE DEALS THAT REDDIT IS DOING. ANOTHER NAME, THE CHIP SECTOR,
MACRON IN PARTICULAR. LET'S BRING UP THE STOCK AND TAKE A LOOK. THERE SEVERAL STORIES OUT THERE, WE WON LARGELY AROUND SHARE BUYBACKS. THE COMPANY BASICALLY SAYING THEY MAY RESUME A STOCK BUYBACK PROGRAM TO OFFSET SOME DILUTION FROM THE EMPLOYEE'S.COM PROGRAMS. THE STOCK IS UP. WE COVER THIS REALLY IN THE CONTEXT OF HIGH-BANDWIDTH MEMORY RECENTLY AND ALSO ONE THAT -- THIS IS "BLOOMBERG." ♪
ED: REDDIT BEAT EXPECTATIONS ON SALES GROWTH AFTER EXPANDING ITS DATA LICENSING PARTNERSHIPS AND INVESTING IN ADVERTISING TECHNOLOGY. THE REVENUE FORECAST FOR THE THIRD QUARTER ALSO BEAT ESTIMATES. JEN WONG, COO, JOINS US LIVE. THE STOCK IS LOWER, IMPRESSIVE SET OF NUMBERS FOR RELATIVELY NEWLY PUBLIC COMPANY.
EVERYONE IS KIND OF LOOKING AT THE OUTLOOK AND TRY TO EXTRAPOLATE OUT, UNDERSTAND THE WORLD THAT REDDIT IS OPERATING IN. CAN YOU GIVE US A SENSE OF COVER STATIONS WITH ADVERTISERS, WHAT THE REST OF THE YEAR LOOKS LIKE? ENVIRONMENT LOOKS LIKE? AND WHY REDDIT MAY OR MAY NOT CARE BETTER WITH THOSE ADVERTISERS COMPARED TO OTHER SOCIAL MEDIA PLATFORMS? >> THANK YOU FOR HAVING ME. THE MARKETS ARE THE MARKETS, BUT WHEN WE LOOK FORWARD TO THE BACK HALF OF THE YEAR, I THINK ADVERTISING IS A PRETTY STABLE MARKET. WHAT DRIVES OUR GROWTH IS WHAT DROVE GROWTH IN Q2 WHICH IS DELIVERING AGAINST AND TRYING TO DRIVE VALUE FOR ADVERTISERS. I THINK WHAT IS DRIVEN OUR USER GROWTH HAS BEEN THE WORK OF MAKING REDDIT BETTER, MAKING IT EASIER TO ACCESS, POST, TO CONNECT WITH COMMUNITIES, EASIER .
WHEN WE MAKE THE PLATFORM BETTER, THE USERS GROW. FROM AN ADVERTISING PERSPECTIVE, IT HAS BEEN ALL THE INVESTMENTS WE HAVE MADE IN OUR AD PLATFORM TO IMPROVE SO WE CAN ADDRESS AND SERVE MORE ADVERTISERS AND GROW THE ADVERTISING BASE. NEXT IS DELIVERING QUARTER OVER QUARTER. THE DELIVERING THINGS THAT ARE REDDIT UNIQUE. TESTING THINGS. THOSE STRATEGIES ARE WORKING FOR US AND WILL CONTINUE EXECUTING AGAINST THAT ROADMAP AS WE HEAD INTO THE BACK HALF OF THE YEAR AND WE FEEL REALLY GOOD ABOUT THE YIELD ON THAT APP. ED: YOU'VE BEEN VERY BUSY SINCE LAST WE SPOKE. I THINK PRINCIPALLY ABOUT THE
DEALS WITH MBA, NFL. WHAT I'M TRYING TO UNDERSTAND IS HOW THOSE VIDEO-FOCUSED PARTNERSHIPS CONTRIBUTE TO YOUR AD GROWTH GOING FORWARD FROM THIS POINT. >> REDDIT IS HOME TO AN INCREDIBLE GROUP OF FAN COMMUNITIES AND THE SPORTS COMMUNITIES ARE SOME OF THE MOST ACTIVE AND ENGAGED ON THE PLATFORM. THEY ARE GLOBAL. SO THE IDEA OF HAVING THOSE PARTNERSHIPS WAS TO BRING IN SPECIAL CONTENT LIKE HIGHLIGHTS, LIKE ACCESS TO PLAYERS FOR AMA'S WERE TWO INSIDERS FOR THOSE COMMUNITIES TO ENJOY -- OR TO INSIDERS FOR THOSE COMMUNITIES TO ENJOY. THAT DOES CREATE AN OPPORTUNITY FOR ADVERTISERS TO SUPPORT THAT CONTENT. AND ARE ALIGNED WITH THAT
CONTENT ON OTHER PLATFORMS LIKE TELEVISION, ETC. IT IS A NICEWIN/WIN/WIN FOR COMMUNITY'S AND ADVERTISERS. IT IS EARLY. IT IS A PROGRAM THAT WE ARE TESTING. WE HAVE DONE WORK WITH THE NFL
AND NOW EXPANDED IT TWO MORE WEEKS. WE ARE EXCITED ABOUT IT BECAUSE I THINK THAT COMMUNITIES ARE EXCITED ABOUT GETTING ACCESS TO THAT CONTENT. IF YOU THINK ABOUT IT, WE HAVE DONE PARTNERSHIPS WITH U.S.-BASED LEAGUES BUT THERE ARE SO MANY MORE SPORTS AND SOME ANYMORE GLOBAL LEAGUES WE CAN ENGAGE WITH.
THE FAN COMMUNITIES, THEY REALLY GO BEYOND SPORTS ON REDDIT. ED: I AM AN LONG SERVING SUFFERING AND PASSIONATE CHELSEA FAN AND FOOTBALL, WHAT YOU CALL SOCCER. I DIVE DEEP INTO REDDIT WHEN I WANT TO SEE WITH THE FAN BASE WANTS TO KNOW.
YOU AND I HAVE DISCUSSED PREVIOUSLY LICENSING OF DATA TO THE AI COMPANIES. BUT A FEW MONTHS HAVE ELAPSED AND I'M WONDERING IF YOU HAVE A BETTER SORT OF VISION FOR THE LONG-TERM POTENTIAL OF THAT BUSINESS MODEL AWAY FROM ADVERTISING? >> LOOK, I THINK THAT LANDSCAPE IS STILL EMERGING AND STILL EARLY DAYS FOR AI. IT IS A LONG ARC. WE HAVE BEEN THOUGHTFUL ABOUT HOW WE STRUCTURE PARTNERSHIPS. OUR VIEW, THEY'RE NOT ONE-YEAR, THEY'RE NOT LONG-TERM. THERE ARE MIDTERM PARTNERSHIPS THAT ALLOW US TO LEARN AND FIND A WAY TO WORK WITH THIS NEW AREA AND SEE HOW IT GOES. I DON'T THINK -- I THINK WE STILL CONTINUE TO LEARN IN THIS PROCESS BECAUSE I THINK IT IS A VERY LONG ARC.
I THINK SOME OF THE THINGS WE HAVE DONE HAVE ESTABLISHED A FOUNDATION FOR THESE PARTNERSHIPS. WHEN YOU LOOK AT OUR PUBLIC CONTENT POLICY AND LOOK AT THE CHANGES WE HAVE MADE, I THINK WE HAVE MADE IT REALLY CLEAR HOW WE WANT THE ECOSYSTEM TO WORK BECAUSE WE ARE'S DO WORDS OF REDDIT'S DATA AND PRIVACY IN ALLOWING SCALED ACCESS TO REDDIT DATA. ED: JEN, WHEN I SIT AT MY COMPUTER IN THE MORNING, I USE VARIOUS SEARCH FUNCTIONS.
IT IS OFTEN A REDDIT THAT WILL COME UP. SPECIFICALLY GOOGLE SEARCH. GOING FORWARD CHATGPT, THERE PLATFORMS WHERE THAT IS NOT THE CASE BEING STUCK DO YOU HAVE A CLEAR STRATEGY FOR SEARCH EXPANSION FOR REDDIT CONTENT? >> WE HAVE BEEN BENEFICIARIES OF THE OPEN INTERNET.
WE BELIEVE IN THE OPEN INTERNET ALLOWING PEOPLE TO GET ACCESS TO IMPORTANT INFORMATION. WE HAVE SOME OF THE BEST AND MOST IMPORTANT ANSWERS REGARDING EVERYTHING. WE WANT REDDIT TO BE OPEN BUT WE HAVE TO HAVE A SET OF RULES FOR DOING THAT. SEARCH AND SUMMARIZATION AI AND DATA USAGE, THEY ARE SORT OF ALL MERGING. THIS IS PART OF WHAT IS CHANGING IN THE WORLD RIGHT NOW. SO I THINK OUR VIEW IS WE WILL HAVE A CONVERSATION WITH ANYBODY ABOUT HAVING ACCESS TO THE DATA BUT WHAT WE HAVE BEEN CLEAR AND TRANSPARENT ABOUT OUR RULES WHICH ARE PUBLIC CONTENT POLICY AND PROTECTING USER PRIVACY, BEING GOOD STEWARDS OF REDDIT'S DATA AND WE HAVE TO HAVE A CONVERSATION WITH THOSE POLICIES AND RULES ARE RESPECTED AND THEN THERE IS COMMERCIAL EMPLOYMENT. WE ARE HAVING CONVERSATIONS
WITH EVERY PLAYER LARGE AND SMALL AND I THINK WE HAVE MADE IT CLEAR THAT WHAT THE RULES ARE AND HOW TO MAKE THIS WORK. AND THE FACT WE HAVE SIGNED DEALS I THINK IS A SIGN THAT WE ARE SENSIBLE. THERE'S A PATH HERE TO DO THAT. ED: THE STAGE IS VERY MUCH SET FOR PRESIDENTIAL ELECTION RACE FOR NOVEMBER STUB HOW DOES THAT IMPACT REDDIT? DO YOU FORESEE BOOST FROM POLITICAL ADS OR EVEN JUST ACTIVITY ON THE PLATFORM CENTERED AROUND THE ELECTION? >> WE ACTUALLY ARE NOT A BIG PLAYER IN POLITICAL ADS. WE NEVER HAVE BEEN. POLITICS IS OBVIOUSLY A BIG AREA THAT OUR COMMUNITIES IS ENGAGED WITH ON REDDIT SO WE DO SEE CONVERSATION. BUT WHAT I WOULD SAY IS ON REDDIT, BECAUSE WE HAVE SO MANY DIVERSE COMMUNITY'S, DIFFERENT COMMUNITIES HAVE MOMENTS AT DIFFERENT TIMES.
THIS IS A PRESIDENTIAL ELECTION YEAR SO POLITICS IS GOING TO BE A LITTLE BIT BIGGER. AT THE OLYMPICS WAS A LITTLE BIT BIGGER. THERE ARE SEASONS WERE OTHER COMMUNITIES KIND OF HAVE THEIR MOMENT. WHAT HAPPENS WITH REDDIT IS IT SMOOTHS OUT OVER TIME. A COMMUNITY MIGHT BE HAVING A MOMENT AT ONE TIME AND ANOTHER COMMUNITY AND THEN ANOTHER. BUT IF YOU LOOK AT THE ARC OF
GROWTH, IT IS ALL SMOOTH OUT OVER THE TREND. ED: REDDIT CEO JEN WONG. COMING UP LATER, WE WILL BREAK DOWN SHOPIFY'S EARNING RESULTS WITH HARLEY FINKELSTEIN. BACK TO AI IN THE SERVICE BASE, LOOK AT SHARES OF SUPERMICRO, DOWN PRETTY SIGNIFICANTLY. INITIALLY SURGED IN AFTER HOURS.
REVENUE AND PROFIT MISSED ESTIMATES IN THE QUARTER BUT THEY GAVE AN OUTLOOK THAT WAS LIKE BILLIONS OF DOLLARS ABOVE WHAT THE STREET WAS EXPECTING. I THINK THE MARKET IS JUST TRY TO MAKE SENSE OF WHAT IS HAPPENING STUB BASICALLY ASSEMBLES THE SERVERS. THIS IS "BLOOMBERG." ED: TIME FOR TALKING TECH. SOFTBANK ANNOUNCED $3.4 BILLION BUYBACK. TOKYO-BASED ROOMS THAT IT WOULD
PURCHASE UP TO 6.8% OF ITS FREE-FLOATING OUTSTANDING SHARES THROUGH AUGUST 7 OF NEXT YEAR. THE MOVE COMES AS THE CEO PREPARES FOR LARGE-SCALE PUSH INTO AI AND SEMICONDUCTOR INVESTMENTS. PLUS TO PACKERS $14 BILLION DEAL TO BUY JUNIPER NETWORKS GET THE OK FROM U.K. WATCHDOGS. THE COMPETITION CLEARED THE PURCHASE AFTER INVESTIGATING IF IT WOULD LESSEN COMPETITION IN THE U.K.
THE DEAL WAS SIMILARLY PASSED JUST LAST WEEK BY THE EUROPEAN UNION. SONY RAISES ITS REVENUE PROFIT FORECAST FOR THE FISCAL YEAR TO MARCH, SO SUCCESSFUL QUARTER AND GAMING DIVISIONS WITH OPERATING PROFITS OF 1.9 BILLION DOLLARS. ITS PLAYSTATION DIVISION SAW A LIFT BUT IT'S PS FIVE CONSOLES WILL JUST 2.4 MILLION UNITS, SIGNIFICANTLY BELOW THE 3 MILLION UNITS THAT ANALYSTS HAD EXPECTED. LET'S GET BACK TO THE EARNINGS STORY AND TAKE A LOOK AT SHOPIFY.
REPORTED EARNINGS RESULTS BEFORE THE OPENING BELL THIS MORNING, BEATING ESTIMATES. THE PRESIDENT JOINS US NOW FOR MORE. GOOD MORNING TO YOU, HARLEY FINKELSTEIN. GOOD TO CATCH UP AND HAVE YOU BACK ON "BLOOMBERG TECHNOLOGY." THINGS ARE GOING RIGHT FOR
SHOPIFY. THE ENVIRONMENT IS HARD TO UNDERSTAND. IS THIS SOMETHING SPECIFIC SHOPIFY'S DOING BETTER OR WELL IN THE ENVIRONMENT? >> I THINK ABSOLUTELY. FIRST AND FOREMOST, WE HAVE
EARNED THE TRUST TO MILLIONS OF MERCHANTS AND BUSINESSES ALL OVER THE WORLD. WE ANNOUNCED A MONTH OR SO AGO WE HAVE NOW POWERED OVER $1 TRILLION SINCE OUR INCEPTION. WE'RE NOT JUST HELPING MERCHANTS COMPETE. WE ARE PROPELLING THEM TO VICTORY. IN PARTICULAR I THINK OUR RESULTS DEMONSTRATE WE CAN CREATE THE SERIOUS COMBINATION OF BOTH GROVE AND PROFITABILITY. WHEN YOU EXCLUDE THE SALE OF LOGISTICS, REVENUE WAS UP 25% FOR THE QUARTER. WHEN YOU LOOK AT FREE CASH
FLOW, MARGIN, MORE THAN DOUBLE FROM LAST YEAR FROM 6% TO 16%. THE MORE MACRO SORT OF MACRO QUESTIONS YOU'RE ASKING, LOOK, FROM OUR VANTAGE POINT, I HEAR FROM OTHER COMPANIES ARE MERCHANTS, THE MERCHANTS ON SHOPIFY ARE OUTPERFORMING OTHERS IN THE MARKET. THEY ARE GROWING AT HEALTHY RATES. WE ARE ADDING MORE MERCHANTS EVERY DAY. AS RESULTS, GETTING MORE OF THE MARKET SHARE. ED: I JUST WANT TO JUMP IN BECAUSE YOU HAVE KINDA BEEN SUFFERING FROM SLOWING GROWTH IN PRIOR QUARTERS. SOMETHING JUMPED OUT.
YOU TALKED ABOUT PARTNERSHIP WITH THE SOCIAL MEDIA PLATFORM THAT REALLY HELPED OUT. LET PLATFORM WAS THAT? WHAT WERE THE SPECIFICS AROUND THAT? THE TRUTH IS, THE WAY WE THINK OF MARKETING, WE DON'T NECESSARILY -- IT IS ALL ABOUT DATA. WE SEE PARTICULAR MARKETING OPPORTUNITY WE TAKE IT.
THESE ARE LEVERS. IN Q1 WE DID AN EXPERIMENT WITH THE NEW EMERGING MARKETING CHANNEL, SOCIAL PLANO. WE PUT SOME TO WORK. WE DOUBLED IT IN Q2. AT THE SAME TIME WE SAW OTHER CHANNELS THAT HISTORICALLY DID PERFORM WILL NOT PERFORM AS WELL SO WE PULLED BACK. THE WAY WE THINK ABOUT OUR MARKETING IS THIS INCREDIBLE DATA-DRIVEN ENGINE THAT ALLOWS US NOT TO JUST FOCUS ON ENGLISH PICKING COUNTRIES BUT OUR POINT-OF-SALE BUSINESS, BE TO BE BUSINESS. ALL WITHIN AN 18 MONTH AVERAGE PAYBACK.
THAT IS THE SOPHISTICATION WE BUILT BACK TO THE GROWTH OF SHOPIFY. ED: SWITCH BIG SOCIAL PLATFORM WAS IT? >> WE DON'T GO INTO SPECIFICS ON THAT. IT IS JUST AN EXAMPLE OF SOMETHING WE ARE CONSTANTLY EXPERIMENTING WITH. I'M SURE YOU CAN FIGURE OUT
WHICH ONE. THE POINT WE WANT INVESTORS AND THE STREET TO TAKE AWAY IS WE ARE ALWAYS LOOKING FOR NEW WAYS TO GROW THE BUSINESS. FIVE CONSECUTIVE QUARTERS OF ABOUT 25 PERCENT TOPLINE GROWTH WHILE BEING PROFITABLE. NOT TOO MANY COMPANIES THAT CAN DO THAT THAT ARE OUR SIZE. THIS IS THE BEST VERSION YOU ARE SEEING RIGHT NOW. ED:
I'VE SPOKEN IS SO MANY BUSINESSES THAT USE SHOPIFY. THIS IS ABOUT DISCOVERABILITY, RIGHT? ADDING NEW MERCHANTS OR MARKETS TO YOUR PLATFORM. LET'S DO THE MATH. IF WE WON'T NAME THE SOCIAL PLATFORM, WHAT PART IS THE SPEND? THE RETURN ON THAT CAMPAIGN SEEMS TO BE VERY DEFINITIVE IN THE QUARTER.
>> THINK ABOUT THIS. WHEN WE WENT PUBLIC OVER NINE YEARS AGO, WE WERE FOCUSED ON E-COMMERCE AND VERY SPECIFIC REGIONS. WE NOW HAVE A POINT-OF-SALE OFFERING THAT SURPASSED $100 BILLION IN GM THE POST OF INTERNATIONAL COME OVER 50% THAT JOINT IN Q2 AND SHOPIFY WERE FROM OUTSIDE OUR COURSE -- OUR COURT WAS SPEAKING -- CORE ENGLISH SPEAKING INSTANCES. ED: WE END THE SUMMER MONTHS AND HAVE THE HOLIDAY SEASON IN NORTH AMERICA, YOU MARKET HARD IN THE SUMMER IN THE HOPES OF HAVING BUSINESS TRANSACTION LATER IN THE YEAR? >> LOOK, I THINK THE KEY IS I DO THINK THE HOLIDAY WILL BE GOOD BUT BECAUSE WE HAVE SO MANY DIFFERENT VERTICALS OF MERCHANTS, WE HAVE NESTLE AND HEINZ AND MATTEL AND STAPLES ALL USING SHOPIFY. WE ARE NOT RELYING ON ONE TYPE
OF MERCHANT. ED: HARLEY FINKELSTEIN, PRESIDENT OF SHOPIFY. GREAT TO HAVE YOU BACK ON "BLOOMBERG TECHNOLOGY."
COMING UP, WE WILL HEAR FROM DISNEY ON THE COMPANY'S EARNINGS RESULTS. THIS IS "BLOOMBERG." ♪ ED: LUCK AND BACK. -- LOOKING BACK. DISNEY GAVE A MIXED PICTURE. MADE ITS FIRST EVER PROFIT IN STREAMING. SO MANY BUNDLES COME ARE CONSUMERS GETTING STREAMING FATIGUE? >> CONSUMERS DO SEEM TO APPRECIATE HAVING A LIMITED NUMBER OF BUNDLES. WHAT WE HAVE TRIED TO DO WITH OUR OWN OFFERING THIS OFFER THE INDIVIDUAL PIECES OR IF PEOPLE WANT TO GET IT IS COMBINED BUNDLING MORE, WE'RE HAPPY TO DO THAT. THAT SAID, I DO THINK YOU SEE A
TREND WHERE THERE IS PROBABLY GOING TO BE A FEW BIG COMPETITORS IN THE MARKETPLACE IN STREAMING WE SEE NOW BETWEEN NETFLIX, AMAZON, AND OURSELVES. AND SMALLER COMPETITORS THAT WILL HAVE TO DECIDE HOW THEY'RE GOING TO RUN THEIR BUSINESSES. >> ARE YOU CONCERNED CONSUMERS POTENTIALLY ARE GOING TO SHRUG OFF THE PRICE INCREASES? WHAT WE HEAR FROM A LOT OF COMPANIES IS WE DO SEE CONSUMERS TRADING DOWN. WHY DO YOU THINK THEY'RE WILLING TO PAY FOR HIGHER PRICE POINT? >> I THINK THE BIGGEST REASON IS IT IS ALWAYS IMPORTANT TO FOCUS ON THIS, THE CONSUMER RECEIVES VALUE AND WHAT THEY PAY IS PRICE. BECAUSE WE'RE DELIVERING SO MUCH VALUE, REALLY IN A NORM ASSIGNMENT OF VALUE IN TERMS OF THE HEADS I JUST MENTIONED -- ENORMOUS VALUE IN TERMS OF THE HITS, BUT AN ACCOMMODATION OF DISNEY PLUS, HULU, AND ESPN, THAT IS A HUGE AMOUNT OF VALUE FOR CONSUMERS. AS THERE ALLOCATING THEIR ENTERTAINMENT DOLLARS, I THINK THEY WILL VIEW US AS A GREAT PLACE TO PUT THEM. ED:
TAKE A LOOK AT DISNEY SHARES. WE ARE OFF SESSION LOWS, DOWN 1.9%. THE COMPANY COMMENTED ON ITS NEGOTIATIONS WITH HULU IN A FILING TODAY SAYING IT MAY HAVE TO PAY $5 BILLION MORE TO ACQUIRE COMCAST 33% MINORITY STAKE IN HULU. THE TWO SIDES HAVE DISAGREED OVER THE FAIR VALUE OF HULU AND ENTERED INTO ARBITRATION PROCEEDINGS. THE STOCK DOWN 2% SO FAR ON THE
YEAR. LET'S DISCUSS THIS WITH RICHARD GREENFIELD. FIRST EVER PROFIT FOR STREAMING. IS THIS THE RICHARD GREENFIELD SLOW CLAP OR ARE YOU NOT SO OVERWHELMED BY THAT NEWS? >> WHEN YOU SEE SUBSCRIBER GROWTH SLOW EFFECTIVELY TO A HALT AND THE PRICE HAS GONE UP PRETTY DRAMATICALLY, IT IS PRETTY CLEAR -- I GUESS IN MANY WAYS IT IS SORT OF, HEY, WE DON'T KNOW HOW TO GET MORE SUBSCRIBER GROWTH SO WE WILL RAISE THE PRICE AND HOPE PEOPLE WON'T -- WE WILL EVEN CUT BACK ON PROGRAMMING. THERE'S LESS PROGRAMMING. DISNEY IS ESSENTIALLY GOING TO RELY ON THEIR MOVIES TO DRIVE THE STREAMING SERVICE AND HOPE THE MOVIES ARE STRONG ENOUGH WHEN THEY FLOW TO THE STREAMING SERVICE THAT PEOPLE DON'T CANCEL BECAUSE THEY ARE NOT EXPECTING A LOT OF GROWTH IN SUBSCRIBERS OVER THE NEXT FEW QUARTERS. IT IS BASICALLY TRYING TO GET TO PROFITABILITY, DRIVE PROFITABILITY OF THE EXISTING BASE BUT IT DOESN'T REALLY SEEM LIKE THERE IS A TREMENDOUS GROWTH STORY HERE.
I THINK -- LOOK, EVERYONE IS FOCUSED ON THE PARKS. I DON'T THINK ANYONE IS FOCUSED ON DISNEY PLUS AT THE MOMENT. THE STREAMING IS A NICE DATA POINT. I THINK IT IS LESS ABOUT PROFITABILITY AND HOW BIG A COULD ACTUALLY BE.
LIKE, CAN THIS BE A MULTIBILLION-DOLLAR FREE CASH FLOW GENERATING BUSINESS THE WAY NETFLIX OR IS THIS GOING TO ESSENTIALLY TREAD WATER IN A LOW SINGLE-DIGIT MARGIN? ED: YOU AND I HAVE DISCUSSED ACHIEVING PROFITABILITY BY CUTTING COST OUT OF THE EQUATION. LET'S BRING IT BACK TO HULU. >> WHAT YOU REALLY WANT TO SEE IS PEOPLE WHO ARE SO PASSIONATE COME THEY LOVE THIS SERVICE, THEY'RE WILLING TO PAY MORE BECAUSE THEY ARE SPENDING SO MUCH TIME -- YOU WANT TO SEE CONSUMER LOVE. AND BASED ON THAT LOVE, YOU CAN KEEP RAISING THE PRICE, GETTING MORE PEOPLE TO SUBSCRIBE BECAUSE THERE IS GREAT WORD-OF-MOUTH. THAT IS NOT HAPPENING HERE NOR ANY OF THESE OTHER STREAMING SERVICES. ED:
I JUST FINISHED STAR WARS ON DISNEY PLUS AND LIKE EVERYONE ELSE I LOVE "THE BEAR" ON HULU. IS IT IMPORTANT COME IF THE IDEA IS TO ACHIEVE VOLUME AND GET STUFF PEOPLE WANT TO WATCH, DO YOU SEE HULU AS BEING SORT OF SOMETHING THAT NEEDS TO BE RESOLVED AS PART OF THAT? >> HULU IS GOING TO BE RESOLVED. WE'RE JUST TALKING ABOUT THE NUMBER NOW. INVESTORS ARE EXPECTING SEVERAL
BILLION DOLLARS WHETHER IT IS FOR BILLION, 5 BILLION, WE WILL SEE. I GUESS COMCAST WILL LOVE MORE AND DISNEY WOULD LOVE LESS BUT I DON'T THINK INVESTORS ARE STRESSING OVER WHAT THIS NUMBER ULTIMATELY IS. INVESTORS ARE JUST SURPRISED THE OPTION WAS EXERCISED LAST OCTOBER. I THINK IT IS SORT OF CRAZY
WE'RE STILL TALKING ABOUT THIS NOT RESOLVED IN AUGUST. ED: RICH, IF YOU COULD ASK ONE THING OF BOB IGER OR GIVE ONE PIECE OF ADVICE TO HIM TO FIX THIS IN A WAY YOU THINK WOULD BE POSITIVE, WHAT WOULD THAT BE? >> LOOK, I THINK THE BOTTOM LINE IS IT DISNEY IS REALLY SERIOUS ABOUT BEING A LONG TIME -- YOU HEARDHUGH SAY IF THEY WANT TO BE A LONG-TERM WINNER IN THE STREAMING CAN COME IT IS NOT ABOUT DISCOUNTING THROUGH BUNDLING. IT IS NOT ABOUT CUTTING BACK ON MARKETING. WHAT THEY REALLY NEED TO DO IS INVEST VERY AGGRESSIVELY. STOP PLAYING THIS NEAR-TERM
AUSTRIA GAME OF TRYING TO GET EARNINGS GROWTH. THEY NEED TO AGGRESSIVELY INVEST . GET CONSUMERS TO ENGAGE WITH THE PLATFORMS EVERY SINGLE DAY FOR HOURS A DAY. THAT SHOULD BE THERE NORTHSTAR VERSUS TRYING TO FIGURE OUT ALTERNATIVE WAYS TO MANAGE CHURN. YOU'VE GOT ALL OF THESE
THEMEPARK CONCERNS SITTING WITH THE COMPANY RIGHT NOW. THAT IS WHAT INVESTORS ARE REALLY WORRIED ABOUT, HOW DID THE THEME PARKS SLOW DOWN THIS FAST IN THE SPAN OF JUST THE LAST FEW MONTHS WHEN DISNEY HISTORICALLY HAS PRETTY GOOD VISIBILITY? >> I WANT TO TALK ABOUT ANOTHER NAME,REDDIT. JEN WONG WAS ON EARLIER. CALM ABOUT THE AD ENVIRONMENT BUT SEES A LOT OF OPPORTUNITY IN SPORTS. I KNOW YOU LIKE THE NAME A LOT. >> WE DO.
IF THINK ABOUT WHAT REDDIT IS, THEY REALLY UNDERSTAND WHAT CONSUMERS ARE INTERESTED IN. THAT ONE OF THE BIGGEST COMPANIES IN THE ENTIRE WORLD COME ALPHABET GOOGLE, IN THE CORNER. YOU CANNOT DO A GOOGLE SEARCH AND NOT SEE REDDIT RESULTS RISING HIGHER AND HIGHER. GOOGLE IS PAYING THE FOR AI STUFF GOOGLE IS A FIRM LEADER IN REDDIT. IF GOOGLE BELIEVES IN REDDIT, EVERYONE WATCHING THE SHOW AND INVESTING SHOULD BELIEVE IN REDDIT. THERE IS THIS INCREASING VISIBILITY REDDIT IS GETTING WITHIN GOOGLE AND JEN WONG, WHO IS NOW BUILDING OUT AND ADD BUSINESS --REDDIT WAS SLOW TO GET GOING.
THEY HAVE A GOING NOW. WE HAVE SEEN OTHER COMPANIES WHETHER IT IS SNAP, PINTEREST, X. WHEN THOSE COMPANIES CROSS ONE BILLION, GETTING FROM 1 TO 3 AND HAPPEN QUICKLY. ESPECIALLY THEY KNOW YOU ARE. THEY DON'T NEED THIRD-PARTY COOKIES OR DATA. THEY KNOW EXACTLY WHO THEY ARE. THAT THIS INTEREST DATA.
YOU ARE SEARCHING REDDIT PER TOPIC WHETHER IT IS FOR THE GIANTS OR VIDEOGAMES. THEY REALLY KNOW WHO YOU ARE. IT ALLOWS FOR REALLY WELL TARGETED ADVERTISING. I THINK REDDIT IS A MUST OWN STOCK. WE JUST PUT A BUY ON IT.
I KNOW PEOPLE ARE WORRIED ABOUT THE LOCKUP ENDING ON FRIDAY. IT IS A GREAT OPPORTUNITY. PEOPLE ARE GOING TO REGRET NOT BUYING IT TODAY. ED:
RICHARD GREENFIELD, GREAT TO HAVE YOU. COMING UP, WE KEEP THE EARNINGS CONVERSATION GOING WITH DAVID RISHER. THIS IS "BLOOMBERG." ♪
ED: LET'S GET BACK TO EARNINGS. LYFT REPORTED BEFORE THE BELL THIS MORNING. THE CEO DAVID RISHER JOINS US LIVE FROM NEW YORK CITY TO DISCUSS. THE BASICS ARE THE OUTLOOK MIS EXPECTATIONS.
SED THE STOCK IS DOWN SIGNIFICANTLY. WHAT IS HAPPENING RIGHT NOW WITH LYFT, THE ENVIRONMENT LYFT FINDS ITSELF IN? >> IT IS GOOD TO SEE AGAIN. LOOK, TO ME IT IS A LITTLE CURIOUS. WE JUST HAD OUR FIRST PROFITABLE QUARTER EVER, WHICH IS AN ENORMOUS ACCOMPLISHMENT. REVENUE GREW 40% YEAR ON YEAR. BOOKINGS ARE UP. 256 MILLION DOLLARS OF FREE CASH.
SERVICE LEVELS ARE FANTASTIC . MORE DRIVERS THAT WE HAVE EVER HAD. THEY INDICATE A STRONG MARKETPLACE. AND WE REITERATED OUR FULL-YEAR GUIDANCE AND MULTIYEAR GUIDANCE AS WELL. ALL THOSE THINGS ARE GOOD. I THINK WHAT PEOPLE ARE LOOKING AT AS THEY ARE SEEING WHAT I WOULD CONSIDER TO BE INCREDIBLY SMALL SORT OF KIND OF ADJUSTMENT AROUND WHAT WE HAVE SAID ABOUT THE FUTURE, THE NEXT QUARTER, NEXT COUPLE OF QUARTERS. THIS TO ME SIGNIFIES THE WORLD WE LIVE IN.
THE THINGS WE THINK ABOUT OUR THE RIDES IN TOTAL IN THE U.S. AND WE ARE LITTLE BY LITTLE, VERY, VERY DISCIPLINED GROWING OUR BUSINESS. I THINK WALL STREET SOMETIMES LOOKS AT SHORT-TERM THINGS THAT GETS OVERLY FOCUSED. I'M THINKING ABOUT LONG-TERM AND SUPER EXCITED ABOUT THE PROSPECTS. ED: THERE SOME DAVID RISHER
STRATEGY I SEE PLAYING OUT LIKE PRICE LOCK, EPEE FEATURE. -- A PAY FEATURE. WHY IS THAT THE PLAN FOR YOU? >> PRICE LOCK IS A WAY FOR RIDERS TO LOCK IN A PRICE ON THE SAME ROUTE AND TIME EVERY DAY.
IT IS AVAILABLE FOR TODAY, BY THE WAY. THE IDEA IS IT TAKES AWAY WHAT I THINK IS ONE OF THE MOST HATED FEATURES OF ALL RIDESHARE WHICH IS SURGE PRICING. YOU CAN NEVER GET RID OF IT COMPLETELY BUT WE COULD CERTAINLY GIVE RIDERS A WAY TO BASICALLY PAY A SMALL SUBSCRIPTION FEE AND LOCK THEMSELVES INTO A CONSISTENT PRICE. I THINK IT IS A SORT OF THING THAT WILL GROW THE BUSINESS OF THE LONG TERM. IT IS AN INVESTMENT. YOST INVEST IN NEW FEATURES YOU
HAVE A CONVICTION AROUND. THIS IS OUR CUSTOMER OBSESSION IS WHAT DRIVES PROFITABLE GROWTH. WE'RE PROFITABLE NOW AND WE THINK IT WILL BE A GREAT GROWTH DRIVER FOR US. ED: ADVERTISING IS ABOUT A GROUND AS WELL. I'M SO FAMILIAR WITH THE LYFT APP BUT WHY IS ADVERTISING THE WAY TO GO? AND WITH WHO? YOU THINK ABOUT PARALLEL INDUSTRIES. >> THINK ABOUT -- LET'S ZOOM OUT. SINCE THE HISTORY OF
ADVERTISING, BRANDS HAVE TRY TO COME UP WITH NEW WAYS TO TALK TO THEIR CONSUMERS POST OF 100 YEARS AGO MAYBE IT WAS BILLBOARDS IN THE MAYBE RADIO ADS IN THE MAYBE TV ADS. RECENTLY, INTERNET. WE SEE THIS MOBILE ADVERTISING, LITERALLY IT COMES TO YOU IN THE CAR WE ARE GOING, AS AN INCREDIBLY IMPORTANT SECTOR WE ARE GOING TO HELP BUILD OUT.
IF YOU THINK ABOUT IT AND REFLECT ON SOME OF THE EARLIER CONVERSATIONS AROUND REDDIT FOR EXAMPLE, WE HAVE ENORMOUS AMOUNT OF FIRST PARTY DATA. EVERYONE OF THEM GOING TO A 7-ELEVEN OR STARBUCKS OR WHEREVER IT MIGHT BE. THAT IS FIRST PARTY DATA. IT IS VERY INDICATIVE OF WHAT RIDERS WANT TO DO. OUR MEDIA BUSINESS IS GROWING UP SIGNIFICANTLY. WE ARE OPTIMISTIC IT WILL BE A
WHOLE NEW FORM OF ADVERTISING THAT WILL GO SUPER GREAT. ED: DAVID, WHEN I REPORTED TESLA WAS DELAYING ITS ROBOTAXI EVENT UNTIL OCTOBER, THE SHARES OF YOUR COMPANY JUMPED IN THAT SESSION. THE VISION IS A PROPRIETARY APP FOR RIDE-HAILING BUT A FLEET OF CARS THAT DRIVE THEMSELVES, TESLAS. YOUR STOCK WENT UP ON THE BASIS EVERYONE WAS LIKE, OK COME THE COMPETITION IS NOT YET COMING. YOUR LATEST THINKING ON THAT? >> I THINK AV'S ARE GOING TO BE GREAT FOR LYFT BECAUSE WE'RE GOING TO THE BEST WAY TO COMMERCIALIZE WHAT IS A VERY EXPENSIVE ASSET. DIFFERENT COMPANIES WILL TRY
DIFFERENT THINGS BUT LARGELY YOU WILL HAVE A LOT OF OEMS DOING A LOT IN THE AV SPACE AND WANTING THEM ON OUR PLATFORM BECAUSE OF MILLIONS OF RIDES COME ALL THE TECHNOLOGY WE HAVE INCORPORATE CARS IN OUR PLATFORM, AND SO FORTH. I DON'T TO COMMENT ON TESLA. WE WILL SEE THAT GOES. I DO THINK CREATING YOUR OWN THING IS A FRAUGHT STRATEGY AND MAYBE A DIFFERENT STRATEGY WOULD BE TO FIGURE OUT A WAY TO GET YOUR CARS WHO HAVE BUILT AND YOUR TECHNOLOGY AS BROADLY AVAILABLE TO US MANY AS POSSIBLE. ED: DAVID RISHER, THANK YOU FOR JOINING US. SHARES LOWER AFTER THE EV MAKER SECOND-QUARTER REVENUE MISSED ANALYST ESTIMATES. CASH PAYMENT BIGGER THAN
EXPECTED. EARLIER I SAT DOWN WITH THE CEO. >> WE SEE BOTH THROUGH THE EXCITEMENT OF OUR CUSTOMERS DIRECTLY BUT THERE ARE LOTS OF WAYS TO MEASURE THIS. JD POWER DOES IN ANNUAL STUDY. WE CAME OUT AS THE NUMBER ONE
BRAND THIS YEAR, NUMBER ONE RANKING LAST YEAR. THE SECOND QUARTER WE WENT THROUGH A BIG REFRESH THE PRODUCT, GENERATION TWO OF THE VEHICLE. SIGNIFICANT IMPROVEMENTS TO THE PRODUCT BUT ALSO TO A TREMENDOUS AMOUNT OF COSTS OUT OF THE VEHICLE. ED:
THE SUMMARY OF THE EARNINGS PRINT WAS ALL OF THE GUIDANCE PREVIOUSLY ISSUED WAS REITERATED AND A LOT OF POSITIVITY AROUND THAT. VERY SIMPLY, LOADS OF PEOPLE ASKED ME TO ASK YOU, CAN YOU DEFINE WHAT MODEST GROWTH PRODUCT MEANS OR WHAT YOU'RE DEFINING ABOUT IN ORDER TO ACHIEVE IT? >> YEAH, YEAH. ULTIMATELY, THIS HAS BEEN THE CENTRAL FOCUS FOR US AS A COMPANY COME AS A BUSINESS, IS DRIVING COST EFFICIENCY AND EVERYTHING WE DO INTO MATERIALS COME HOW WE OPERATE AND RUN OUR PLANT, AND ALTERNATELY DRIVING TOWARD GETTING OUR PRODUCTION OF OUR VEHICLES OUT TO ULTIMATELY HAVE THE BUSINESS GET TO POSITIVE FREE CASH FLOW AND PROFITABILITY. THERE'S A WHOLE SERIES OF STEPS WE ARE MAKING ALONG THE WAY IN TERMS OF IMPROVING COST, BUT THE BIGGEST SINGULAR STEP WE HAVE MADE IS WHAT WE DID IN THE SECOND QUARTER. WE TOOK THE PLANT DOWN FOR ABOUT A MONTH AND MADE MEANINGFUL CHANGES TO THE OPERATION AND CHANGED A SIGNIFICANT PORTION OF OUR SUPPLY BASE TO NEW SUPPLIERS IN CONJUNCTION WITH THE NUMBER OF DESIGN IMPROVEMENTS. ALL OF THAT COMES TOGETHER TO TAKE US TO A PLACE WHERE THEY CRIMINAL VEHICLE WE SELL IS POSITIVE -- WHERE EVERY VEHICLE WE SELL IS POSITIVE. THAT IS WHERE WEIRD CONTINUING
TO GUIDE TOWARD. ED: I WANT TO SEND THE FIRST INSTANCE, IS IT JUST LIKE MORE THAN ZERO OR SINGLE DIGITS GROSS PROFIT? I THINK THAT IS THE ANSWER WE ARE LOOKING FOR. >> WE HAVEN'T PROVIDED A SPECIFIC NUMBER BUT CERTAINLY BY THINK IT IS POSITIVE, MORE THAN ZERO.
OUR OBJECTIVE WE HAVE GOTTEN INTO FOR A LONG TIME WE CONTINUE TO MAINTAIN IS LONG-TERM MARGIN PROFILE ON OUR ONE SHOULD BE AROUND 25%. BEYOND THIS FOURTH-QUARTER PERFORMANCE WE ARE TRACKING TOWARDS SEEING HOW WE CONTINUE TO IMPROVE IN 2025 AND BEYOND. WE STILL MAINTAIN CONFIDENCE IN THE 25% GROSS MARGIN. ED: MY INTERVIEW WITH RJ'S CARRIAGE, RIVIAN CEO. TESLA WILL RELEASE THE SOFTWARE UPDATE TO MOST OF THE CARS IT HAS EVER SOLD IN CHINA DUE TO AN ISSUE THAT COULD LEAVE AND UNLOCKED UNNOTICED CREATING A POTENTIAL SAFETY HAZARD STOP TESLA WILL DEPLOY AN THE AIR SOFTWARE FIX. COMING, SOCIAL PLATFORM X FILES A LAWSUIT ABOUT AN ADVERTISING BOYCOTT. WE HAVE THOSE DETAILS COMING
NEXT. THIS IS "BLOOMBERG." >> I WAS SHOCKED BY THE EVIDENCE UNCOVERED BY THE HOUSE JUDICIARY COMMITTEE THAT A GROUP OF COMPANIES ORGANIZED A SYSTEMATIC ILLEGAL BOYCOTT AGAINST X. IT IS JUST WRONG. AND THAT IS WHY WE ARE TAKING ACTION. ED: THAT WAS THE CEO OF X AFTER THE COMPANY FILED A LAWSUIT ACCUSING AN INDUSTRY GROUP OF VIOLATING ANTITRUST LAWS FOR AN ADVERTISING BOYCOTT THAT COST THE SOCIAL MEDIA COMPANY BILLIONS OF DOLLARS IT ALLEGES IN THE FILING.
ADVERTISING BOYCOTT SOUNDS SEVERE. FEDERAL FILING. EXPLAIN THE BASIC ACCUSATION THAT X IS MAKING. >> THE CLAIM IS THIS GROUP, THIS INDUSTRY TRADE GROUP FOR ADVERTISERS ESSENTIALLY DID ANTICOMPETITIVE BEHAVIOR. THEY CAME OUT AND ADVISED ALL THE MEMBERS OF THE GROUP NOT TO SPEND ON X, CREATED A BOYCOTT OF THE BUSINESS.
THEY ARE CLAIMING THIS IS ILLEGAL. I DON'T KNOW EXACTLY WHAT AN ILLEGAL BOYCOTT IS VERSUS A LEGAL ONE, BUT YOU AND I HAVE SEEN BOYCOTTS OF NOT ONLY ADVERTISING BUT PRODUCTS ALL THE TIME. THIS IS USUALLY THE WAY THE CONSUMERS OR BUSINESSES SORT OF VOICE THEIR DISPLEASURE WITH SOMEONE, WHICH IS WHAT HAPPENED IN THIS CASE SHORTLY AFTER ELON TOOK OVER. I DON'T KNOW WHETHER THIS LAWSUIT WILL SUCCEED FOR THEM BUT I THINK WHAT THEY'RE DOING IS SENDING A HUGE SIGNAL THAT, ONE, THE BUSINESS IS STRUGGLING. TWO, THEY ARE PICKING A FIGHT WITH THE BROADER AT INDUSTRY RIGHT NOW. ED:
YOU'RE SHOWING MORE OF THE COMMENTS SHE MADE. VIDEO POSTED TO X, ELON MUSK AMPLIFIED IT. I GUESS THE CONTEXT IS THAT X HAS BEEN SUFFERING IN TERMS OF REVENUE OR FINANCIALLY IN THE PERIOD SINCE MUSKA TOOK OVER AND THE NEW CEO BECAUSE OF THIS. I'M TRYING UNDERSTAND WHY THEY WOULD TAKE ACTION. >> THERE SAYING THIS GROUP IS COLLECTIVELY GETTING EVERYONE ROUND TO INTENTIONALLY HURT X'S BUSINESS.
I THINK WHAT IS INTERESTING IS WHAT DOES THIS IGNORE? IT IGNORES ELON'S BEHAVIOR WHICH WE HAVE TALKED ABOUT SEVERAL TIMES OVER THE LAST COUPLE OF YEARS. YOU MAY RECALL, ED, LATE LAST YEAR, WENT ON STAGE AND TOLD CONCERTGOERS TO F THEMSELVES. HE HAS BEEN AGGRESSIVE TO CERTAIN ADVERTISERS OVER THE YEARS. WHILE THERE SAYING, HEY, LOOK, THIS GROUP IS ILLEGALLY CREATING THIS BOYCOTT, IT DOESN'T TAKE INTO ACCOUNT THE FACT SOME OF THIS DECISION-MAKING MAY SIMPLY BE BECAUSE PEOPLE DON'T WANT TO WORK WITH ELON GIVEN THE THINGS HE HAS DONE AND SAID TO THEM. ED: KURT WAGNER, THANK YOU. COMPLICATED STORY. WE WILL FOLLOW THE PROCESS HERE
ON BLOOMBERG TECHNOLOGY. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." ANOTHER BUSY DAY OF HER EARNINGS. FANTASTIC INTERVIEWS WITH EXECUTIVES FROM ACROSS THE WORLD OF TECHNOLOGY RECAP AND THE PODCAST. YOU KNOW EXACTLY
WHERE TO FIND IT COME ON THE TERMINAL AS WELL AS APPLE, SPOTIFY, AND I HARD. THIS IS "BLOOMBERG TECHNOLOGY." ♪
2024-08-10 00:46
