Tesla's Disappointing Results and Google's Shares Dip | Bloomberg Technology
>> FROM THE HEART OF OR INNOVATION, MONEY AND POWER COLLIDE IN SILICON VALLEY AND BEYOND THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM LONDON AND SAN FRANCISCO THIS IS BLOOMBERG TECHNOLOGY. FULL COVERAGE OF TESLA'S DISAPPOINTING SECOND-QUARTER RESULTS. ED:
GOOGLE INVESTORS AWAITING AN AI PAYOFF. WE BRING YOU THE DETAILS. CAROLINE: AN UPDATE FROM CROWDSTRIKE ON THE GLOBAL I.T. OUTAGE. A BIG FALL IN TESLA STOCK. ED: THE CHART ON THE SCREEN TELLS THE STORY PRAY DOWN AROUND 12%, 13% IN THE SESSION INTRADAY THAT WOULD BE THE BIGGEST DROP SINCE JANUARY 25.
ON A CLOSING BASIS A DECLINE OF 12.5% IT'S THE BIGGEST DROP GOING BACK TO SEPTEMBER OF 2020. A LOT OF ANXIETY AND THE MISUNDERSTANDING HERE. FOURTH CONSECUTIVE QUARTER OF EPS MISSING ESTIMATES BUT A RECORD REVENUE QUARTER WHERE WE RETURN TO NEAR GROWTH THIS -- DESPITE THE ESTIMATE WE SEE DECLINING GROWTH. I THINK ROBOTAXI IS AT THE
HEART OF IT. CAROLINE: OF COURSE THE DELAY BEING THE KEY WATCHWORD. HERE'S WHAT HE HAD TO SAY ABOUT THE DELAY ON THE ROBOTAXI.
>> WE ARE LAUNCHING SOME IMPORTANT CHANGES WE THINK WILL IMPROVE THE SORT OF ROBOTAXI AND THE MAIN THING WE WILL SHOW AND WE ARE ALSO GOING TO SHOW OFF A COUPLE OF OTHER THINGS. CAROLINE: CRAIG, IT WAS YOUR TEAM THAT BROKE DOWN THE FACT THERE WOULD BE THIS DELAY IN ROBOTAXIS. THIS IS THE FUTURE OF THE AI UNDERPINNING OF TESLA.
WHY ARE WE SO WORRIED ABOUT THIS RESULT? CRAIG: IT WOULDN'T NORMALLY BE A HUGE CAUSE FOR CONCERN'S FOR AN EVENT TO BE PUSHED BACK BY ALL OF TWO MONTHS. HOW MATERIAL IS THAT FOR THE COMPANY EXCEPT ELON MUSK HAS REALLY LEANED INTO THIS BEING THE WAY FORWARD FOR TESLA AND THE REASON YOU SHOULD OR SHOULD NOT INVEST IN THE STOCK. SO THE SLIGHTEST DELAY OF THIS EVENT TO SHOWCASE WHAT HE IS ESSENTIALLY BETTING THE COMPANY ON AS THE COMPANY CONTINUES TO HAVE DETERIORATING EARNINGS IS CAUSE FOR CONCERN ESPECIALLY IN LIGHT OF THE MOVE IN THE STOCK AND THE LEAD UP TO THOSE EARNINGS. THIS WAS A STOCK IT WAS REALLY BATTERED WHEN THEY LAST REPORTED RESULTS AND HAS COME ROARING BACK OVER THE LAST FEW MONTHS SO I'M NOT SURPRISED TO SEE THE SHARES DOING THIS. ED: IT'S THE DELAY OF AN EVENT WHERE WE WOULD UNVEIL OR SEE PUBLICLY FOR THE FIRST TIME A PURPOSE BUILT ROBOTAXI. THEY WENT SOME WAY TO EXPLAIN THE MANUFACTURING PROCESS, THIS REVOLUTIONARY UNBOXED MANUFACTURING STRATEGY. THE INFERENCES THAT WILL BE
POST 2025. AUTOMOTIVE GROSS MARGIN, TALK ME THROUGH WHERE THE SELL SIDE IS FOCUSED ON THAT. CRAIG: THERE IS A REAL CONCERN NOT ONLY HAS TESLA CUT PRICES, BUT IT'S CUT PRICES AND ONLY SEEN SALES SHRINK. IT MEANS YOU HAVE TO CONTINUE TO CUT COSTS TESLA TO ITS CREDIT HAS DONE THAT. VERY CONSISTENTLY FOR YEARS BUT IT ALSO NEEDS PRODUCT TO REINVIGORATE SALES. ELON MUSK HAS SPOKEN TO THE IMPORTANCE OF BEING ABLE TO OFFER PEOPLE MORE AFFORDABLE EV'S IN ORDER FOR THEM TO BE ADOPTED BY A WIDER SET OF CONSUMERS. BUT HE REALLY HAS NOT BEEN
WILLING TO SORT OF BACK THAT UP WITH PRODUCT. WE HAVE SEEN THE CYBER TRUCK ROLLOUT BUT YOU HAVE TO PAY SIX FIGURES TO BUY THAT TRUCK. WHERE IS THE MODEL TWO AS PEOPLE LIKE TO REFER TO IT. THE VEHICLE THAT WOULD BE CHEAPER THAN THE MODEL 3 AND THAT'S A REAL CONCERN FOR FOLKS WHO ARE WILLING TO CREDIT HIM WITH HIS VISION AND GIVE HIM SOME TIME TO REALIZE ROBOTAXIS BUT HE NEEDS TO SORT OF DELIVER IN THE HERE AND NOW FOR MORE AFFORDABLE ELECTRIC VEHICLES FOR TESLA TO GROW AGAIN. ED: GLOBAL AUTO EDITOR IN LONDON, THANK YOU VERY MUCH.
REACTION TO TESLA'S SECOND QUARTER FROM AN INVESTOR BUT THIS TIME A RETAIL OR INDIVIDUAL INVESTOR. ALEXANDRA HOLDS THOUSANDS OF SHARES OF TESLA AND HAS DONE SO SINCE 2020. SHE SAID PREVIOUS CAREERS IN FINANCE AND IS AN INVESTMENT ANALYST WORKS AS A VISA CONSULTANT IN CALIFORNIA. ON X IS A PROMINENT VOICE IN THAT LARGE BODY OF INDIVIDUALS WHO DO BACK ELON MUSK AND ARE BULLISH ON TESLA'S LONG TERM.
GOOD MORNING TO YOU, WELCOME TO BLOOMBERG TECHNOLOGY. THE MOST IMPORTANT TAKE AWAY FROM EARNINGS FOR YOU PLEASE. >> THANK YOU FOR HAVING ME. FOR ME THE MOST IMPORTANT WAS
ACTUALLY THAT WE ARE MOVING INTO THIS NEXT PHASE OF TESLA'S GROWTH AND ALL THE MARKERS WE HAVE LAID THERE ARE STILL THERE. AND ARE MOVING AHEAD AT THE SAME TIME AND WITH THE SAME VIGOR THAT ANTICIPATED. AS A RETAIL INVESTOR I ACKNOWLEDGE THE MARKET AND YOUR TYPICAL AUDIENCE PROBABLY DOESN'T HAVE THE SAME LARGE TIME HORIZON THAT WE HAVE BUT FOR US IT IS REALLY AS A RETAIL INVESTOR JUST ANOTHER BUYING OPPORTUNITY. WE WERE AT THESE PRICES AT THE BEGINNING OF THE MONTH. WHEN WE GOT THE DELIVERY AND PRODUCTION NUMBERS THE SHARE PRICE WAS ABOUT AT THE SAME LEVEL. WHEN YOUR CHANNEL BROKE THE NEWS THAT THE ROBOTAXI EVENT WAS GOING TO BE DELAYED BY TWO MONTHS WE WERE ALREADY A LITTLE BIT HIGHER. THAT'S WHERE WE SAW THE FIRST
FLUCTUATIONS IN THE STOCK PRICES. NOW IT'S CONFIRMED FOR OCTOBER 10 SO IT IS A MERE TWO MONTHS. YOUR COLLEAGUE IS COMPLETELY RIGHT. IT IS NOT A LONG DELAY AND THERE ARE TECHNICAL REASONS FOR IT BUT I ALSO THINK TESLA WANTS TO BE READY AND SURE TO SHOW WHATEVER IS NECESSARY TO CONVINCE THE MARKETS, THE RETAIL INVESTORS ABOUT AUTONOMY AND THAT BEING THE CRUCIAL PART TO TESLA'S FUTURE. CAROLINE: CAN YOU SELL TO US A LITTLE BIT MORE, CONFIRM HOW YOU UNDERSTAND FULL SELF-DRIVING, A FOCUS ON AI TO EVENTUALLY BECOME SOME ROBOTAXI FLEET WHERE SUDDENLY WE HAVE A RIDE-HAILING APP OUT OF TESLA'S. HOW DOES THAT BECOME TO BEAR IN
A GOOD USE EFFICIENT BUSINESS STRATEGY WAY FOR YOU? ALEXANDRA: WE DON'T HAVE TESLA'S MODEL YET. THAT IS WHAT'S GOING TO BE THE QUINTESSENTIAL OF OCTOBER 10. WHAT I WANT TO BRING FORWARD IS MY INTERPRETATION FROM FORMER SPEECHES OF ELON AND THE TESLA TEAM SO THIS MAY NOT BE THE CORRECT VERSION BUT FOR ME IT SEEMS CLEAR THERE WILL BE A THREEFOLD BUSINESS MODEL. ONE, TESLA'S OWN FLEET MEANING CARS THAT ARE EITHER ALREADY IN TESLA'S POSSESSION, PEOPLE HANDING BACK THEIR LEASES OR WHATEVER ELSE INVENTORY THEY HAVE IN THEIR OWN FLEET THAT ARE GOING TO OPERATE AUTONOMOUSLY AND BE STRATEGICALLY PUT IN CITIES IN SPOTS WHERE THEY WILL HAVE THE BEST YIELD OF A ROBOTAXI BUSINESS. COULD BE AIRPORTS, SHOPPING MALLS, WHATEVER. THAT'S PROBABLY TO BE TRIED OUT
AND FOUND OUT HOW IT'S CAN OPERATE. THAT'S ONE PART OF IT. THE SECOND PART IS OWNERS LIKE ME CAN PARTICIPATE AND CAN ENROLL THEIR CARS INSTEAD OF STANDING HERE IN FRONT OF MY HOUSE, IT CAN TRAVEL AROUND THE DAY AND PICK UP CLIENTS AND BRING THEM TO THE PLACES THEY WANT TO BE BROUGHT TO. THAT'S GOOD TO BE A REVENUE SHARING MODEL. THE THIRD ONE IS GOING TO BE THE PURPOSE BUILT ROBOTAXIS. ED:
WHICH IS WHY THE DATA OF UNVEILING IT WAS IMPORTANT. I WANT TO THINK ABOUT THE SELL SIDE FOR A SECOND. ONE OF TESLA'S BIGGEST BULLS IS MOVING TO THE SIDELINES AFTER EARNINGS. I'M TALKING ABOUT PETE.
HE'S DOWNGRADED TESLA TO NEUTRAL AND IS WRITING THIS STOCK ISN'T -- IS AT THE TARGET PRICE TRADING AT 50 TIMES THEIR 2026 ESTIMATES. THEY SEE LIMITED AND UNRELIABLE VALUATION UPSIDE, ETC.. WE HAVE YOU ON THE PROGRAM AS A RETAIL OR INDIVIDUAL SHAREHOLDER, HOW CLOSELY DO YOU FOLLOW THOSE FUNDAMENTAL ANALYSES THAT THE SELL SIDE MAKES. ALEXANDRA: HE IS FRENCH, I LIVED A LOT IN FRANCE, I LOVE HIS ACCENT AND THE WAY HE'S DOING IT. I LIKED HOW HE FORMULATED HIS POST BECAUSE HE WAS NOT SAYING HE DOWNGRADED TESLA. THERE WAS SOMETHING BIZARRE
ABOUT IT LET'S PUT THAT ASIDE. HE DOES NOT SEE IN THE NEXT 12 MONTHS MAJOR DEVELOPMENTS THAT COULD BRING THE STOCK HIGHER. THAT'S WHY THEY ARE PUTTING IT TO NEUTRAL.
I COMPLETELY DISAGREE. WE ARE HAVING ROBOTAXI DAY AND ALSO OCTOBER Q3 NUMBERS AND THEN WE WILL MOVE INTO 2025 WITH A LOT OF ANNOUNCEMENT. THREE OF THEM. WE WILL HAVE THE MODEL TWO, THE CHEAPER VERSION OF THE TESLA BE PRESENTED IN EARLY 2025. WE WILL HAVE PRODUCTION OF OPTIMISTS AT THE END OF 2025 SO THERE'S A LOT OF THINGS HAPPENING. HE REFERRED TO ENERGY AT ITS 20% PART OF THE PROFIT OF TESLA BUT IT'S ABOUT 17% ONLY. THERE IS MUCH MORE MARGIN IN ENERGY. IF YOU WANT TO TALK ABOUT
ENERGY REVENUES AND PROFITS BECAUSE THEY ARE NOT LIKE A CAR IMMEDIATELY CONSUMED AT THE MOMENT OF SALES. THEY ARE OVER TIME. WHEN YOU SELL ENERGY YOU GET IN THE REVENUES AND PROFITS IN INSTALLMENTS SO THERE IS A LOT OF WAITING REVENUES AND WAITING PROFITS ALREADY THERE AND THERE'S MUCH MORE TO COVER THAT AND AM SURPRISED PIERRE DID NOT TAKE CARE OF THAT. CAROLINE: I'M GLAD YOU BRING UP THE OTHER PARTS, THERE'S ALSO THE DOJO SIDE OF THINGS. MANY ARE TRYING TO UNDERSTAND
THE LOGIC THERE. TAKE A LISTEN TO WHAT ELON SAID LAST NIGHT. >> WE WILL DOUBLE DOWN ON DOJO AND WE DO SEE A PATH TO BEING COMPETITIVE WITH NVIDIA AND I THINK WE KIND OF HAVE NO CHOICE BECAUSE THE DEMAND FOR NVIDIA IS SO HIGH. CAROLINE: NVIDIA SHARES DOWN AS IS MOST OF THE MARKET TODAY BUT SOME SAYING MAYBE THERE'S A LACK OF DEMAND WILL COME FROM TESLA GOING FORWARD. WAS THAT A SURPRISE THAT THEY'RE GOING TO BE RAMPING UP DOJO BECAUSE THEY ARE WORRIED ABOUT THE SUPPLY SIDE? ALEXANDRA: THANK YOU SO MUCH. IT IS FUNNY BECAUSE OVER THE LAST FIVE OR SIX YEARS, THAT WAS ONE OF THE TOPICS IN THE EARNINGS CALL SHALL I DO IT, SHALL I NOT.
IT WAS A DANCE AND ABOUT SIX MONTHS AGO WE DID A WHOLE TIMELINE OF NONCOMMITTAL WE WOULD LIKE TO DO A BUT WE ARE NOT SURE, DON'T BET ON IT. IT'S NOT SO CLEAR YET. THIS IS THE FIRST TIME ELON CLEARLY SAID WE HAVE NO CHOICE WE WILL DOUBLE DOWN ON IT AND DO IT. THIS IS FABULOUS NEWS. THE SUPERCOMPUTERS ARE SO FAR AHEAD AND WILL MAKE THE WHOLE TESLA INFRASTRUCTURE, THE WHOLE DIGESTION OF VIDEOS AND OUTPUTS SO MUCH MORE PROFITABLE RATHER THAN PURCHASING THE NVIDIA CHIPS. CAROLINE: -- ED: I WANT TO ASK WOULD YOU VOTE IN FAVOR OF TESLA INVESTING IN X AI PER THE POLE AND EXCHANGE LAST NIGHT. ALEXANDRA: THANK YOU VERY MUCH.
I APPRECIATE ALL OF THOSE. I WOULD VOTE FOR IT BUT NOT UNCONDITIONALLY. YOU KNOW HOW I LIKE DOING THE ANALYSIS OF THINGS. WE JUST HAD NEWS THAT OPENAI
WILL PROBABLY PRODUCE ANOTHER $5 BILLION LOSS THIS YEAR. I THINK THESE AI COMPANIES NEED TO BE THOROUGHLY ANALYZED. IN PRINCIPLE I LOVE IT AND UNDERSTAND WHY IT'S A SEGREGATED ENTITY FROM THE START. THOSE ENGINEERS DON'T WANT TO BE IN A MEGA CAP COMPANY THEY WANT ALL THE UPSIDE OF A SMALL START UP SO IT'S NEEDED TO BE SET UP THAT WAY BUT ALSO I FULLY UNDERSTAND TESLA NEEDS ALL THIS INPUT AND TESLA HAS $30 BILLION OF CASH LINES SO INVESTING 5 BILLION COULD BE A GOOD IDEA. >> THAT WAS A SCREEN GRAB OF THE POLE, NOT ANY MEMBER OF THE BLOOMBERG TECHNOLOGY TEAM. INVESTOR IN TESLA, RETAIL
SHAREHOLDER THANK YOU. EARLIER THIS MONTH IT WAS REPORTED ELON MUSK HAD PLEDGED TO DONATE 45 MILLION DOLLARS A MONTH TO A SUPER PAC SUPPORTING TRUMPS PRESIDENTIAL CAMPAIGN. ON TUESDAY HE CONFIRMED ON X HE WOULD MAKE DONATIONS HOWEVER AT A MUCH LOWER LEVEL THAN WHAT HAD BEEN REPORTED. HE DID NOT SAY HOW MUCH HE HAD CONTRIBUTED. CAROLINE: WELL DONE FOR CLEARING THAT UP. LET'S CHECK IN ON THESE MARKETS. THE NASDAQ OFF BY 2.6%. WE ARE TRADING AT THE LOWEST
SINCE JUNE THE 11TH. WHY ARE WE LOWER, A WORRY THAT AI ISN'T REAPING THE REWARDS IN THE HERE AND NOW SO WE DIVE INTO THAT. WHAT IT TELLS US IF INVESTORS AND SEEN US ABOUT AI AND REWARDS.
WEALTH ENHANCEMENT GROUP JOINS US. THIS IS BLOOMBERG TECHNOLOGY. ♪ CAROLINE: ALPHABET SHARES FALLING AFTER THE GOOGLE PARENT SUNK MORE RESOURCES INTO DRIVING TO OUT MATCH RIVALS IN ARTIFICIAL INTELLIGENCE FUELING SPENDING HIGHER THAN ANALYSTS HAD BEEN EXPECTING. THE CFO WANTING TO SOUND SOME REASSURANCE ON THE CALL SAYING WE ARE SEEING THE BENEFIT OF OUR STRENGTH IN AI, AS WE GENERATED AI SOLUTIONS FOR CLOUD CUSTOMERS. THERE'S NO QUESTION CUSTOMERS ARE TURNING TO US AS THEY ARE BUILDING OUT THEIR CAPABILITIES. LET'S DISCUSS THIS. PORTFOLIO MANAGER OF WEALTH ENHANCEMENT GROUP, YOU HOLD SHARES OF ALPHABET, THEY ARE DOWN THE MOST SINCE FEBRUARY.
REVENUE IS UP SOME 15%, EARNINGS-PER-SHARE JUMPING 31% BUT IT SEEMS TO BE THIS IDEA OF PLUNGING $13 BILLION PER QUARTER INTO AI THAT'S THE REAL WORRY. >> THANKS FOR HAVING ME. IN TERMS OF GOOGLE WE THOUGHT IT WAS A PRETTY SOLID QUARTER. WE HAD STRENGTH IN REVENUES AT
A SEARCH AND CLOUD WAS PRETTY STRONG. THE $13 BILLION THAT IS BEING SPENT ON CAPEX AND THE 25 BILLION SPENT SO FAR YEAR-TO-DATE, YOU TAKE THAT AND SAY IT WILL BE 50 BILLION FOR 2024, GOOGLE STILL HAS $80 BILLION OF NET CASH ON THEIR BALANCE SHEET SO I THINK THE SPEND IS WARRANTED, THE INFRASTRUCTURE IS REALLY NEEDED. THEY NEEDED TO DO IT FOR THE CLOUD GROWTH TO BEGIN WITH AND IT IS SOMETHING THAT ALL THE HYPER SCALARS ARE CONTINUING TO DO IN 2024 AND INVESTORS ARE ASKING WHAT IS THAT RETURN ON INVESTMENT AT SOME POINT. IN 2025. ED: WHEN I WAS ON THE PHONE WITH RUTH I ASKED HER SHE WOULD GIVE A REVENUE RATE NUMBER, YOU PROBABLY MEMBER LAST QUARTER.
SHE SET I'M KNOCKING TO DO THAT BECAUSE WE WILL ADDRESS IT ON THE ANALYST CALL. THEY SAID YEAR-TO-DATE THEY HAD BILLIONS OF DOLLARS OF REVENUE FROM AI INFRASTRUCTURE AND GENERATIVE AI. I'M CURIOUS FOR AN INVESTOR LIKE YOU WHY WAS THAT NOT ENOUGH IF IT WAS SO GOOD FOR AMAZON TO GIVE A NUMBER LIKE THAT A FEW MONTHS AGO? AYAKO: I THINK IT IS ON THE SPENDING SIDE. HISTORICALLY WE HAVE SEEN COMPANIES THAT SPEND MORE ON CAPEX HAVE LESS ON THEIR FREE CASH FLOW TO SPEND ON MONEY BEING RETURNED TO SHAREHOLDERS. THAT'S PROBABLY THE REASON WHY THE STOCK IS SELLING OFF A LITTLE BIT TODAY BUT OVER THE LONG TERM VALUATION FOR GOOGLE IS NOT EXTREME.
IT STILL HAS A -- IS A QUALITY COMPANY AND HAS A GOOD BUSINESS MODEL. I THINK IT'S ATTRACTIVE AT THIS LEVEL. CAROLINE: WHAT IS SO INTERESTING IS IT FEELS AS THOUGH ALPHABET AND TESLA ARE JUST SHAKING ALL OF OUR CONCERNS ABOUT THE AI HIKE AND THE FACT THIS ISN'T GOING TO BE HUGELY REVENUE-GENERATING IN THIS QUARTER OR THE NEXT. HOW IS YOUR PATIENCE FOR AI TO PAY OFF WHETHER IT'S ALPHABET OR NVIDIA OR SOME OF THE OTHER NAMES IN THE HOPE THAT AI IS BECOMING A PROFITABLE REALITY. AYAKO:
I THINK IN THE BROADER SCHEME OF THINGS IF THIS SELLOFF IN TECHNOLOGY SHARES ACROSS ALL OF TECH I THINK IT'S A HEALTHY THING FOR MARKETS. WE ARE SEEING THE BROADENING OUT OF MARKETS WE'VE BEEN TALKING ABOUT FOR SO LONG AND YOU ARE SEEING OTHER AREAS OF THE MARKETS PICK UP THE SLACK WHICH IS GREAT TO SEE. I THINK FOR AI SUNDAR PICHAI SAID IT IN TERMS OF TAKING TIME IT'S ALL GOING TO TAKE TIME AND WHEN WE LOOK BACK AT THE CLOUD AND THE GROWTH OF CLOUD, THAT ALSO TOOK TIME. MICROSOFT AZURE AND GOOGLE CLOUD WERE ALL BEING BUILT YEARS AND YEARS AGO AND WE ARE JUST STARTING TO SEE THAT BENEFIT. THEY ARE STILL GROWING AT 25% PLUS RATES. SO I THINK THAT AI IS PROBABLY ON A SIMILAR TRAJECTORY.
IT'S JUST NOT GOING TO BE IN A STRAIGHT LINE. ED: WAYMO 50,000 PAID RIDES A WEEK SO ALPHABET PUTS ANOTHER $5 BILLION INTO IT. YOUR REACTION TO THAT. >> I THINK AS TESLA IS PUTTING MONEY INTO THE ROBOTAXI SIDE OF THINGS I THINK AUTONOMOUS DRIVING CARS ARE SOMETHING THAT IS A LONG TERM GROWTH DRIVER FOR MANY OF THESE COMPANIES WHETHER IT BE GOOGLE OR TESLA OR EVEN NVIDIA IN TERMS OF THE OVERALL CHIPS THAT WILL BE INSTALLED IN MANY OF THESE CARS SO I THINK IT IS AGAIN ANOTHER LEG THAT MAY BE AGAIN TAKE MORE TIME, THAT INVESTORS DON'T ALWAYS HAVE THE PATIENCE FOR. BUT IT ISN'T ANOTHER GROWTH AVENUE FOR MANY OF THESE STOCKS. ED: PORTFOLIO MANAGER AT WEALTH ENHANCEMENT GROUP, THANK YOU. COMING UP WE ARE JOINED BY ALEX, CEO ON BUILDING EASY TO CAROLINE: TODAY FOR OUR AI IN ACTION SEGMENT LET'S BRING IN THE CEO OF STAINLESS, A COMPANY DEDICATED TO BUILDING A PLATFORM FOR HIGH QUALITY EASY-TO-USE APIS BY DEVELOPING SOFTWARE DEVELOPMENT KITS.
THE COMPANY RECENTLY CLOSED A 3.5 MILLION SEED ROUND. WHAT PROMPTED, YOU ARE BUILDING IN DOING THIS AND YOU'VE TAKEN IT BROADER. HOW DIFFERENT IS IT CREATING SDK S OVER AND AI COMPANIES PAY HOW MUCH MORE DIFFICULT? >> IT'S A GREAT QUESTION. THERE'S A LOT OF TECHNIQUES WE USE AT STAINLESS THAT ARE SIMILAR TO THE TECHNIQUES WE USED ON AN POWERED STRIPE. A LOT OF THINGS ARE DIFFERENT.
FOR ONE THING WE NEED TO SUPPORT A BROADER VARIETY OF API DESIGN PATTERNS AND THAT'S TRUE FOR JUST BUILDING A PLATFORM THAT CAN SUPPORT ANY COMPANY TO BUILD A GREAT DEVELOPER EXPERIENCE AND INCLUDES AI AND NON-AI COMPANIES. FOR COMPANIES LIKE OPENAI, ANTHROPIC, A WIDE VARIETY OF OTHER COMPANIES WE SUPPORT WE HAVE TO GO DEEPER TO HELP DEVELOPERS REALLY TAKE FULL ADVANTAGE OF THE FULL POWER OF THESE APIS. THEY ARE MUCH MORE ADVANCED, RICHER WITH THINGS LIKE STREAMING AND CALLING. AND THAT REQUIRES A LOT MORE EXPERTISE THAN EVEN FINTECH APIS LIKE STRIPE. ED: A TEAM OF 10 WITH $3.5 MILLION IN THE BANK. HOW ARE YOU IN A GROW YOUR
BUSINESS? ALEX: GREAT QUESTION. WITH COMPANIES LIKE OPENAI, ANTHROPIC, CLOUD FLARE EVEN USING OUR SDKS AND A BUNCH OF SMALLER COMPANIES RECOGNIZED IN SILICON VALLEY'S LEADERS IN API FIRST STRONG DEVELOPER EXPERIENCE WE'VE SEEN A LOT OF INBOUND INTEREST. AND SO I AM VERY GLAD WE'VE INVESTED IN BUILDING STRONG PLATFORMS FOR SCALING OUT SDKS FOR A LARGE NUMBER OF COMPANIES BECAUSE IT'S ENABLED US TO KEEP OUR TEAM SMALL, FOCUSED AND HIGH SKILLED WHILE SERVING A LARGE NUMBER OF API COMPANIES. CAROLINE: STAINLESS -- ED: THANK YOU COMING UP ON BLOOMBERG TECHNOLOGY WE WILL BE JOINED BY THE FOUNDER AND CEO OF CHECK POINT SOFTWARE TECHNOLOGIES AND OF COURSE THAT'S HOT ON THE HEELS OF THE COMPANY'S EARNINGS AND THE BIGGEST I.T. OUTAGE PROBABLY IN HISTORY THAT IMPACTED HIS INDUSTRY, I THINK THAT'S AN UNDERSTATEMENT. STAY WITH US WE WILL BE RIGHT BACK.
THIS IS BLOOMBERG TECHNOLOGY. ED: WELCOME BACK TO BLOOMBERG TECHNOLOGY. CAROLINE: CAROLINE HYDE RIGHT HERE IN LONDON. LET'S CHECK IN ON THESE MARKETS BECAUSE WE HAVE HAD PLENTY TO DIGEST WHEN IT COMES TO ALPHABET AND TESLA. OTHER COMPANIES POSTED EARNINGS AND SOME ARE GIVING SOME RELIEF.
TEXAS INSTRUMENT'S UP 5/10 OF A PERCENT. MAYBE THAT GLUT IS COMING TO AN END. SIGNS WE ARE MEETING EXPECTATIONS FOR THE FORECAST REALLY IT SEEMS TO BE THE REVIVAL IS UNDER THE WAY HE MARKET SO THERE'S PRESSURE ON AUTOMOTIVE AND INDUSTRIAL BUT MAYBE THAT IS THE BOTTOMING OF THAT. IBM LOWER AS WE EXPECT THEIR NUMBERS COMING OUT AFTER THE BELL TODAY CONSULTING LIKELY TO BE LOWER. ARE WE GOING TO EKE OUT ONE PERCENT REVENUE GROWTH THAT MANY ARE PARTICIPATING -- ANTICIPATING. 21% IN EARNINGS. HOW MUCH ARE WE SEEING APPETITE FOR ARTIFICIAL INTELLIGENCE GENERATIVE AI REALLY MANAGED TO BUOY SOME OF THEIR SOFTWARE WHEN COMPANIES ARE STRAPPED FOR SPENDING.
LET'S LOOK AT WHAT'S HAPPENING WITH THE STORY THAT WON'T GO AWAY FOR CROWDSTRIKE IN PARTICULAR WE ARE SEEING IT OFF BY 25% OF THE LAST FIVE TRADING DAYS. WE FINALLY GOT SOME SORT OF ANSWER TO WHY THIS HAPPENED, TO THE MASSIVE GLOBAL I.T. OUTAGE WAS A BUG AND A QUALITY ASSURANCE TOOL THE COMPANY USES TO CHECK UPDATES FOR MISTAKES. IT ALLOWED FLAWED DATA TO GO OUT TO CUSTOMERS CAUSING THE MELTDOWN. THE MELTDOWN IN THE STOCK CONTINUES. GET A LITTLE BIT OF DETAIL. KATRINA MANSON IS WITH US AND WE'VE BEEN WAITING FOR FURTHER DETAILS, CAN YOU GIVE US THE NUANCES TO ULTIMATELY WHY THIS IS SO UNIQUE, HOW THIS QUALITY ASSURANCE STEP FAILED. KATRINA:
IT IS SO COMPLICATED AND SO DETAILED. WHAT WE'VE NOW GOT HIS FIVE DAYS LATER THE PRELIMINARY INCIDENT REPORT. THIS RIGHT IN THE SMALL PRINT TAKES US TO WHAT CYBERSECURITY EXPERTS ARE SAYING IS A WELCOME DETAILED, TRANSPARENT REPORT BUT IT IS STILL EARLY DAYS AS THEY ARE DOING THE ROOT CAUSE ANALYSIS. LET ME READ IT TO YOU. DUE TO A BUG IN THE CONTENT VALIDATOR OF THE TWO INSTANCES PAST VALIDATION CONTAINING PROBLEMATIC DATA. THE TESTING PROCESS FOR MAKING UPDATES IN SOME WAY FAILED TO FLAG AN ERROR. ONE THERE WAS AN ERROR AND THE
TESTING PROCESS TO FIND IT ALSO HAD A PROBLEM. BECAUSE CROWDSTRIKE IS SO INSTRUMENTAL TO ENDPOINT DETECTION RESPONSE REALLY PROTECTING COMPUTERS IN THIS CASE LIKE HER SOFT WINDOWS COMPUTERS, 8.5 MILLION OF THEM ACCORDING TO MICROSOFT EXPERIENCE THE BLUE SCREEN OF DEATH THAT AFFECTED HOSPITALS, AIRPORTS, RETAIL AIRLINES, THEY ARE STILL GETTING BACK ON THEIR FEET SOME OF THESE COMPANIES TRYING TO DO AUTOMATED FIXES AND THEY ARE STILL IN RECOVERY MODE. AT THE SAME TIME TRYING TO SHARE 120 WRONG AND PROMISING
THERE WILL BE FIXES. ED: THE MESSAGE FROM CROWDSTRIKE IS WE WILL MAKE SURE TECHNOLOGICALLY SPEAKING WE KNOW WHAT HAPPENED BUT AS YOU AND I WROTE ABOUT EARLIER IN THE WEEK WE STILL ARE LEARNING ABOUT HOW SYSTEMIC THIS ISSUE WAS ABOUT HOW CENTRAL CROWDSTRIKE IS TO AN IMPORTANT SUPPLY CHAIN. WAS THE LATEST ON THAT FRONT? KATRINA: IT COMES DOWN TO THAT SINGLE POINT OF FAILURE. AS WE SPEAK TO EXPERTS IN THE AREA IT BECOMES CLEAR SOME OF THE THINGS THAT PROTECT PEOPLE ARE ALSO VERY CLOSELY NESTLED INSIDE THEIR SYSTEMS SO IF SOMETHING GOES WRONG WITH THAT AND EVERYTHING. ANOTHER ONE OF THE SINGLE POINTS OF FAILURE THAT HADN'T BEEN NOTICED, CAUGHT AND EXAMINED. WE WILL EXPECT TO HEAR FROM NOT ONLY CYBERSECURITY COMPANIES TRYING TO GET MILEAGE OUT OF THIS AND TRY TO TAKE CUSTOMERS THAT ALSO FROM THOSE WHO LOOK AT CYBER DEFENSE IN THIS COUNTRY AND WORRY THERE ARE SIMPLY TOO MANY HOLES. ED:
HOLD THAT THOUGHT. THE TRINA WITH THE LATEST REPORTING ON CROWDSTRIKE. OTHER COMPANIES IN THE SPACE, LET'S STICK WITH CYBERSECURITY AND BRING IN THE FOUNDER AND CEO OF CHECK POINT SOFTWARE TECHNOLOGIES WHICH JUST RELEASED ITS SECOND QUARTER RESULTS BEATING EXPECTATIONS AND ANNOUNCE A NEW INCOMING CEO. YOU ARE IN THE GAME ALSO
ENDPOINT SECURITY, TO START WHAT'S THE LAST SEVEN DAYS OR SO BEEN LIKE FOR YOU? AND YOUR COMPANY INCOMING AND OUTGOING IN YOUR RESPONSE TO WHAT HAPPENED WITH CROWDSTRIKE? GIL: WE HAVE BEEN WATCHING IT AND SUPPORTING CUSTOMERS AND HELPING IN WHAT WE CAN HELP. IT'S NOT A CYBERSECURITY BUG IT'S A SOFTWARE BUG. BUT IT SHOWS US HOW DEPENDENT US IN SOFTWARE CAN TAKE THE WORLD UP AND DOWN AND IT'S ALSO A VERY STRONG, WE NEED THIS QUICK AUTOMATIC UPDATES AND THE CYBER RISKS THAT ARE INVOLVED BECAUSE THESE QUICK UPDATES ARE SUPPOSED TO HELP SOLVE VULNERABILITIES AND EVERY WEEK DOZENS OF VULNERABILITIES ARE DISCOVERED IN COMPANIES AND WE NEED THESE QUICK UPDATES TO STOP THESE ATTACKERS. CAROLINE: HAS THE INDUSTRY CHANGED ANYTHING ARCHITECTURALLY SPEAKING THAT WOULD MEAN THIS CANNOT HAPPEN AND BECOME A SINGLE POINT OF FAILURE AGAIN? GIL: I THINK WE ARE LEARNING. I DON'T WANT TO EXCLUDE US, WE
NEED TO LEARN HOW TO CREATE THIS BALANCE BETWEEN QUICK UPDATES ON ONE HAND AND AVOIDING VULNERABILITIES WHICH IS ALSO VERY IMPORTANT. AND I THINK THAT'S A LESSON THE ENTIRE WORLD NEEDS TO LEARN. ED: I APPRECIATE IT IS EARLY IN THIS PROCESS PRAY THERE WERE QUESTIONS ABOUT THE FUTURES OF FIREWALLS AND I WANTED TO ASK IF THERE WOULD BE THIS ARCHITECTURAL SHIFT IN CYBERSECURITY AND LANDSCAPE. OUR ANALYST AT BLOOMBERG INTELLIGENCE TALK ABOUT A MOVE TO AGENTLESS DELIVERY OF SECURITY LIKE IN THE CASE OF ENDPOINT SECURITY PROVIDED BY CROWDSTRIKE. BIG PICTURE HOW DO YOU SEE THAT PLAYING OUT? GIL: IN THE LAST 30 YEARS, I'VE BEEN IN THIS BUSINESS FOR 31 YEARS AND WE'VE KIND OF INVESTED IN NETWORK CYBERSECURITY.
THERE'S ALWAYS AGAIN DOZENS OF TECHNOLOGIES EVEN HUNDREDS OF TECHNOLOGY. THE NETWORK SECURITY AND THE ENDPOINT TECHNOLOGY. I THINK WE NEED BOTH AND IT WOULD BE EASY FOR ME TO SAY EVERYONE WILL SHIFT TO THE NETWORK MANY TIMES PEOPLE SAY THE OTHER ROUTE BUT AT THE END OF THE DAY WE NEED BOTH THE ENDPOINT SECURITY AND PERIMETER SECURITY AND EACH ONE OF THEM COMPLEMENTS EACH OTHER. AND STILL WITH ALL OF THAT WE ARE FACING A LOT OF CYBER RISKS. >> THERE IS SO MUCH TO TALK ABOUT WITH YOUR COMPANY AND INDUSTRY. YOU OF COURSE HAVE MANAGED TO
BEAT EXPECTATIONS IN YOUR EARNINGS. YOU ARE SEEING THE REVENUE GROWTH AS IT HAD BEEN ANTICIPATED. ALSO WE'VE GOT M&A NOT HAPPENING POTENTIALLY HAPPENING, GOOGLE AND WIZ FOR EXAMPLE.
SOME INTERPRETATION IS WITH YOUR NEW CEO THAT MAYBE YOU WILL DO MORE M & A, THAT YOU COULD BE BEEFING UP PURSUING DEALS? GIL: FIRST I DEFINITELY HOPE WE CAN DO MORE. WE HAVE BEEN DOING TWO A YEAR IN THE LAST TWO YEARS BUT WE CAN DO MORE AND BIGGER ONES. I DO THINK WHAT'S HAPPENING IS ACTUALLY VERY INTERESTING IT'S AN AMAZING COMPANY BUILT VERY FAST LEADERSHIP IN THE CLOUD SECURITY SPACE AND I THINK THE FACT THEY WANT TO REMAIN STANDALONE AND BUILD A LARGE COMPANY IS SOMETHING WE CAN ALL ADMIRE BECAUSE IT WILL TAKE THE MANY YEARS TO GET TO THE SAME FINANCIAL NUMBERS WITH THESE. CAROLINE: WE REALLY WANT TO TALK ABOUT JUST HOW MUCH YOU CONTINUE TO BE INNOVATING OVER IN THE SPACE. COME ON BACK, CURRENTLY CEO OF
CHECK POINT SOFTWARE TECHNOLOGIES HANDING OVER THOSE REIGNS, HE REMAINS AS FOUNDER. ED: A LOT MORE IN THE NEWS, HACKERS HAVE LEAKED INTERNAL DOCUMENTS STOLEN FROM WINOS HOLDINGS -- FROM LEIODDOS HOLDINGS. THEY SERVICE THE LIKES OF THE PENTAGON AND NASA. A COMPANY SPOKESPERSON SAID THE LEAK STEMS FROM A PREVIOUSLY DISCLOSED BREACH AND THAT NO EFFECT ON THEIR NETWORK OR ANY SENSITIVE CUSTOMER DATA. PLUS META HAS REMOVED OVER 63,000 ACCOUNTS IN NIGERIA LINKED TO SCAMMERS.
THE PARENT COMPANY OF FACEBOOK SAID THEY REMOVED ACCOUNTS USING THE SOCIAL MEDIA PLATFORM TO BLACKMAIL AND SEXUALLY EXTORT USERS. THE MASS REMOVAL TOOK PLACE AT THE END OF MAY. SIX WEEKS AFTER A BLOOMBERG ARTICLE DETAILED THIS. SHARES OF NETEASE ARE CLIMBING. IT GETS SET TO LAUNCH ITS
MOBILE GAME. ACCORDING TO GOLDMAN SACHS AGAIN PUBLISHER IS EXPECTED TO GENERATE SALES OF 880 MILLION FROM THE GAME OVER ITS FIRST 12 MONTHS. THEY SAY 40 MILLION PEOPLE HAVE ALREADY PRE-REGISTERED FOR THE GAME. CAROLINE: YOU LOVE A BIT OF GAMING. COMING UP WE HAVE BLOOMBERG'S LIST OF 10 AI STARTUPS TO WATCH THIS YEAR. MEANWHILE KEEP AN EYE ON CERTAIN SHARES. AT&T ADDING FAR MORE MOBILE PHONE SUBSCRIBERS. FEWER CUSTOMERS CANCELING, MANY
ADDING SERVICES TO THEIR BROAD -- TO THEIR PLANS. T-MOBILE DOWN MORE THAN 1%. 4.9 BILLION DOLLARS IN A JOINT VENTURE WITH THE PRIVATE EQUITY FIRM KKR. THIS IS BLOOMBERG TECHNOLOGY. SPOTIFY AND I HEART RATE THIS IS BLOOMBERG.
ED: BLOOMBERG IS OUT WITH ITS SECOND ANNUAL LEADERBOARD OF AI STARTUPS, THE BOOM AND AI INNOVATION IS LED TO TENS OF BILLIONS OF DOLLARS FUNNELED INTO AI COMPANIES IN THE FIRST PART OF THIS YEAR ALONE. THESE TEND STARTUPS YOU SEE HERE ARE SOME OF THE BIGGEST AND BEST FUNDED TO BE WATCHING RIGHT NOW. LET'S BRING IN ONE OF THE CO-AUTHORS AND ONE OF THE ASSEMBLERS OF SUCH A LIST. THE TOP 10, RACHEL METZ, LET'S START WITH METHODOLOGY. SOME OF IT IS OBVIOUS. OPENAI AND COMPLEXITY SUPER
INTERESTING. HOW DID YOU PUT THIS TOGETHER. RACHEL: SOME OF IT IS A LITTLE BIT OF THINKING OF WHAT WE THINK SHOULD BE ON THIS LIST. IT SHOULD BE POINTED OUT THIS IS NOT A RANKED LIST SO IT'S NOT ONE THROUGH 10. IT'S ARBITRARILY LIST IT ON THE LIST BUT A LOT OF IT IS RELATED TO THEIR VALUATION, HOW MUCH MONEY THEY'VE RAISED AND BUZZ WHICH IS A HARD FACTOR TO PIN DOWN WHICH IS KIND OF UP TO YOUR OPINION. CAROLINE:
DWELLING ON A COMPANY LIKE SUE KNOW, MANY OF US HAVE HEARD OF THE OTHER PLAYERS BUT IT IS AN MASSACHUSETTS-BASED $500 MILLION VALUATION, BUT NOTHING IN COMPARISON TO OPENAI. WHY WOULD YOU PICK THIS GENERATOR? RACHEL: IT'S ONE OF A COUPLE COMPANIES ON THIS LIST THAT WE -- MAY SOUND SURPRISING AT FIRST BECAUSE IT HASN'T RAISED A TON OF MONEY AND IT'S NOT WORTH A TON. BUT IT HAS GOTTEN A TON OF ATTENTION IN GOOD WAYS AND BAD FROM PEOPLE THAT ARE USING IT TO MAKE THESE VERY COMPLICATED SOUNDING SONGS, GENERATING MUSIC THAT JUST WASN'T POSSIBLE UNTIL QUITE RECENTLY WITH AI.
IT'S ALSO DRAWN THE IRON OF THE VERY FAMOUSLY LITIGIOUS MUSIC INDUSTRY. THE BIGGEST REPPERT RECORD LABELS IN THE WORLD SUED THEM RECENTLY CLAIMING IT USED SONGS, COPYRIGHTED SONGS UNLAWFULLY IN ITS TRAINING DATA. CAROLINE: LET'S GO GEOGRAPHICALLY. I BRING UP A CAMBRIDGE-BASED COMPANY. THESE ARE LARGELY U.S.-BASED WHETHER THEY BE IN NEW JERSEY
OR IN SAN FRANCISCO. BUT THERE IS ONE CANADIAN, ONE FRENCH. IS IT HARD TO FIND INTERNATIONAL WINNERS RIGHT NOW? RACHEL: THERE IS AN INCREASING NUMBER OF STRONG INTEREST IN COMPANIES ALL AROUND THE WORLD. WE RELIED ON SOME OF OUR BLOOMBERG TECHNOLOGY REPORTERS IN OTHER PARTS OF THE WORLD TO HELP US FIGURE OUT WHO IN YOUR GEOGRAPHY IS MOST IMPORTANT. THIS YEAR TO GIVE A SENSE OF HOW HARD IT WAS TO FIGURE OUT WHO SHOULD BE ON THIS LIST, THIS YEAR WE ADDED AN ADDITIONAL SIX COMPANIES THAT ARE ONES WE THINK PEOPLE SHOULD KEEP AN EYE ON AND A NUMBER OF THOSE ARE OUTSIDE THE U.S.. NEXT YEAR THOSE MIGHT BE ON THE TOP 10. ED: I LOOK AT THE LIST AND HOW MANY
OF THE NEWS HEADLINES AND STORIES FOR THOSE COMPANIES ON THE SHOW LIKE SUPER FOCUSED ON THEIR FUNDRAISING. I'M A USER OF CHATGPT AND HAVE PLAYED A BIT WITH PERPLEXITY. HOW MUCH WAS THE SORT OF REAL-WORLD USE OF THE TECHNOLOGIES THOSE COMPANIES ARE MAKING PART OF YOUR DECISION IN SAYING THESE ARE THE TOP 10. RACHEL: THAT'S SOME OF IT. I THINK OPENAI IS AN EASY COMPANY TO PUT ON A LIST LIKE THIS BECAUSE YOU SEE IT ACHIEVING IN THE MULTIPLE DIFFERENT AREAS WE WERE LOOKING AT, IT HAS BRAND RECOGNITION AND IT CLEARLY HAS CORPORATE USERS AND CONSUMERS THAT ARE INTERESTED IN THE COMPANY. IT'S RAISED A TON OF MONEY OVER TIME AND WORTH A LOT OF MONEY.
SOME OF THESE COMPANIES IT WAS LIKE A COMBINATION OF FACTORS THAT THEY MIGHT NOT HAVE BEEN ON THEIR EVERY SINGLE ONE. AND IT'S TRUE SOMETIMES IT'S HARD TO GAUGE IF YOU ARE ENTIRELY ENTERPRISE FOCUSED. DON'T KNOW WHO A TON OF YOUR CUSTOMERS ARE FOR INSTANCE BECAUSE A LOT OF COMPANIES ARE EITHER STILL EXPERIMENTING WITH AI AND NOT REALLY USING IT IN DAILY PRACTICES OR THEY MIGHT NOT WANT TO BE SUPER PUBLIC ABOUT WHAT SOFTWARE THEY ARE USING. CAROLINE:
RACHEL, YOU AND THE TEAM IS ALWAYS DOING GREAT WORK, THANKS FOR BRINGING THIS TO US. WE WILL DISCUSS THE IMPACT GEN Z AND SOCIAL MEDIA IS HAVING ON POLITICS. HOW THE HARRIS CAMPAIGN HAS EMBRACED THE VICE PRESIDENTS RECENT SOCIAL MEDIA SPOTLIGHT. THIS IS BLOOMBERG TECHNOLOGY. >> I AM SO VERY HONORED AND I PLEDGE TO YOU I WILL SPEND THE COMING WEEKS CONTINUING TO UNITE OUR PARTY SO THAT WE ARE READY TO WIN IN NOVEMBER. CAROLINE:
VICE PRESIDENT KAMALA HARRIS VOWING TO WIN THE ELECTION IN HER FIRST CAMPAIGN RALLY. AFTER PRESIDENT BIDEN PULLED OUT OF THE RACE AND ENDORSED HARRIS ANY GEN Z VOTERS WERE QUICK TO EMBRACE THE CAMPAIGN THROUGH MEMES, VIDEO EDITS OF THE VP THAT HAVE SINCE GONE VIRAL ON TIKTOK, INSTAGRAM. CEO FUTURE CAUCUS A NONPARTISAN ORGANIZATION FOR YOUNG POLICYMAKERS JOINING US NOW FOR WHAT HAS BECOME A MEAN FRENZY. SO QUICKLY PREVIOUS SPEECHES JUMPED UPON, BRAT SUMMER HAS BECOME, IS BRAT. THIS IS A MOMENT FOR GEN Z TO BE AWAKENED, WHY IS THIS HAPPENING SO EFFECTIVELY? >> I LOVE THIS AND THE FACT YOU JUST SAID ON BLOOMBERG KAMALA IS BRAT IS AN INCREDIBLE TURN OF EVENTS.
I THINK YOU DON'T HAVE TO BE A POLITICAL EXPERT TO KNOW THAT THE PAST FEW WEEKS, MONTHS, YEARS IN POLITICS HAVE FELT EXHAUSTING. THE RACE BETWEEN TWO PEOPLE WHO WE HAVE SEEN THIS MATCHUP BEFORE HAS FELT STATIC AND THIS MOMENT HAS INTRODUCED SOME DYNAMISM AND FRANKLY SOME JOY BACK IN TO WHAT IS A TENSE POLITICAL MOMENT. SEEING THE VICE PRESIDENT'S TEAM CAPITALIZE ON IT BUT ALSO A LOT OF ORGANIC CONTENT FROM RANDOM INTERNET USERS SPEAKS TO THE SENSE OF JOY I THINK PEOPLE ARE INFUSING BACK INTO THE CONVERSATION WHERE IT REALLY WAS LACKING. ED: DIRECTOR PRODUCER SAYING THEY ARE ADDING CAROLINE SAYING THAT TO THE SHOW REEL FOR 2024. THE BENEFIT OF OUR GLOBAL
AUDIENCE AND I HAVE SEEN IT OF COURSE AND ENGAGEMENT, EXPLAIN BRAT TO US. CAROLINE: CHARLI XCX IS BRAT. SHE IS A NEW SONG THAT'S ALL ABOUT BRAT SUMMER. IT'S A FEMALE WHO IS QUICK TO LAUGH, WHO DOESN'T TAKE HERSELF TOO SERIOUSLY BUT GOES DEEP, PERHAPS ENJOYS PARTYING SLIGHTLY.
WHY LAYLA HAS THIS BEEN A LEXICON THAT WILL BE DIFFERENT TO MOBILIZE GEN Z? TO THE POINT WE PERHAPS SEE TRUMP TO HIS CAMPAIGN'S EFFORTS THINKING ABOUT CRYPTO AS A WAY TO LINK TO MILLENNIAL OR YOUNGER VOTERS. LAYLA: THE RACE REALLY WAS ABOUT AGE FOR MONTHS AND ULTIMATELY PRESIDENT BIDEN MADE HIS DECISION IN LARGE PART BECAUSE OF THIS PUSH TO MOVE TO GENERATIONAL FUTURE THAT HE JUST WASN'T REPRESENTING AND SO THE WILLINGNESS TO LEAN IN TO SOMETHING THAT APPEAL SO DEEPLY TO YOUNG PEOPLE OR AT LEAST SPEAKS THEIR LANGUAGE I THINK IS -- PEOPLE FEEL HEARD, THEY FEEL EXCITED AND I CANNOT PREDICT THE FUTURE OR TELL YOU HOW IT WILL AFFECT THE VICE PRESIDENT'S CAMPAIGN IN PART BECAUSE WE DON'T HAVE AN OFFICIAL NOMINEE UNTIL THE CONVENTION NEXT MONTH. BUT I THINK ONE THING TO KNOW IS SAVVY SOCIAL MEDIA USERS STILL NEED TO USE ANOTHER PHRASE OF THE MOMENT, LIVE IN THE CONTEXT. GEN Z MIGHT HAVE AN ABSURD SENSE OF HUMOR AND MIGHT REALLY ENJOY THE SORT OF BUZZWORDS AND THESE TRENDING MEMES, BUT AT THE END OF THE DAY THEY ARE SERIOUS AND INFORMED ABOUT POLICIES THEY CARE ABOUT. ED: MEMES ARE ALSO A TOOL FOR RIDICULE, MISINFORMATION.
GENERALLY THIS CONVERSATION HAS BEEN ABOUT THE POSITIVE REACTION ON SOCIAL MEDIA, THERE IS NEGATIVE REACTION AND THE CONTENT IN SUPPORT OF HER IS ALSO IN COMPETITION WITH CONTENT IN SUPPORT OF TRUMP AND J.D. VANCE. JUST EXPLAIN THE DYNAMIC OF THAT TO OUR AUDIENCE. LAYLA: SOCIAL MEDIA HAS ALWAYS BEEN A POWERFUL WAY TO RECLAIM NEGATIVE TERMS, NEGATIVE PERCEPTIONS AND THAT CAN WORK IN A POSITIVE -- POLITICIANS FAVOR IF THEY LEAN INTO IT. LOOKING AT PRESIDENT BIDEN WITH DARK BRANDON OR LAST ELECTION CYCLE WITH HELICAL DUTCH GUILDER CLEANSE MENTION OF DEPLORABLE'S AND THAT BECOMING A GALVANIZING CRY FOR TRUMP SUPPORTERS. I THINK OF POLITICIANS OR THEIR
SUPPORTERS LEAN INTO SOME OF THE NEGATIVE MEMES IT ACTUALLY CAN BE REALLY POWERFUL FOR THEM. THERE'S NO DOUBT IN MY MIND SOCIAL MEDIA IS BOOSTING INFLAMMATORY CONTENT, IT CAN CONTRIBUTE TO WORSENING POLITICAL POLARIZATION AND IS SOMETHING FUTURE CAUCUS HAS WORKED ON BRINGING LAWMAKERS TOGETHER TO KNOW EACH OTHER AS HUMANS ARE NOT DIGITAL AVATARS. SOCIAL MEDIA HAS THE POSSIBILITY TO ADD GASOLINE TO A POLARIZED MOMENT. CAROLINE: FOR NOW SUMMER ARE FINDING THE POSITIVE HUMOR SIDE, BUT THERE IS A SERIOUS SIDE TO IT. WE HOPE TO BRING YOU BACK ON TO DISCUSS THE PROS AND CONS OF EMBRACING SOCIAL MEDIA. WE APPRECIATE IT. THAT DOES IT FOR THIS EDITION
OF BLOOMBERG TECHNOLOGY. ED: LISTEN TO THE PODCAST ON THE TERMINAL AS WELL AS APPLE, SPOTIFY AND I HEART. CHELSEA WREXHAM, THIS IS BLOOMBERG.
2024-07-26 17:34
