Earnings. I and Katie Greifeld in new york. Welcome to bloomberg markets. There is red on the screen behind me. The s p down by about. 2 . Same move when you take a look at the nasdaq 100. Your chips are the relative outperformer today but by a very small margin. I will call that unchanged on the stocks index but lets get specific. Two stocks we are watching our uber and lyft. Uber missed expectations. We have mandeep here. Tell us what uber tell us what lyft did do and what uber did not. Mandeep both of them had an inline quarter. Expectations were way too low. The fact that they grew over 20 was a positive. There is no doubt that you are seeing this saturation in new rider additions. It is a key topline driver. In the case of uber, it is trying to offset through its partnership with instacart. The delivery segment clearly does not have a lot of levers, but in the case of lyft, we do not know who they will partner with, whether that will be doordash or somebody else. Katie lyft shares are up almost 8 . Uber is a different story at almost 6 . Meanwhile, lets get a check. Shares are lower after the ev maker reported a wider than expected loss in the First Quarter. We have the vivian ceo joining rivian ceo joining ed ludlow. Ed one of the wider losses, we will get into it. The main question is, update us on the reservation number. You have not given us one since that initial march expectation. The expectation has been outstanding. Different than what we did, we have taken the decision to not disclose where we are in terms of reservations. It caused us a lot of noise. We have taken the view that we want to be customer centric. We found a lot and how we manage the process, but there is a level of excitement and we are working hard to get it to market. Katie if you could give us a little bit more detail, i know you said you learned from the are one experience r1 experience. On the day of the launch, we gave a number of 16,000. Now, we have obviously grown a lot from that, but the challenge with the number is, it is a false metric and it causes a lot of noise. We would rather focus on the product. Our goal is to ramp up production as quickly as possible. Ed something i noticed that was interesting is the proportion seems to be going up. Can you give us that proportion . Is it a good thing right now in this environment, where you are growth phases . We do not disclose the split between sales on lease. We have expanded it. We have added a number for leasing. The key to recognize a leasing does have an advantage for electric vehicles. Any lease qualifies for the tax credit. That leads to a disproportionately large number relative to a combustion vehicle , given the benefits of that credit. Katie i want to talk about what is going on. You shut down some of the lines for component upgrades. If you could walk us through how that gets you to positive, that would be helpful. We started reduction in late 2021. This is the first time walking through the plant that there have been no vehicles on the line. The plant was really empty. We drained out everything that we were producing with the largely original supply chain and design. It made a large number of changes to the plant and had a number of new suppliers, on board. That leads to a step change improvement at multiple levels. It allows the plant to run more efficiently. We did a similar shutdown at the beginning of 2020 three. We took about 35 of the material cost out of the vehicle with shutdown. The scale of change is similar to that. Ed the criticism, skepticism and worried from the investment base is that the gross profit plan is based on technology and cost efficiency, cost saving, not on the scale. They do not understand the middle pathway. You shutdown the component upgrades and gross profit, modest growth profit happens. How can you be confident with that . One of the big things is that is not fully appreciated, how much it links to suppliers first components. Everything from seats, tires, brake systems. The vast majority of the materials that have been in our vehicles, some parts into 2020. The leverage that we had as a company, before we launched, it is vastly different than what we have today, where we had the bestselling suv in california, electric or gasoline. We have the bestselling eeev with the brand resonating more than 5 market share overall. We have seen that really positive reaction to the product. It has allowed us to renegotiate significant reductions in our structure. These are contracts that are in place. We will start to see these contracts flow into the structure. It is why you have heard continually. I think the other thing, there are a lot of elements that make it hard to read. There has been a shut down changeover that we will not see as we go into the end of the year. A significant amount of depreciation that will reduce dramatically towards the end of the year. Those types of cost that we are not going to see at the end of the year, the improvements and material costs, the plant with the rates increased, we will see that and it will allow us to achieve this growth margin. Ed you have had a lot of executive changes. You have a new coo. You have done headcount reduction. Is it now settled for the project to come . One of the things about building a company like this is the needs of the business evolved and change. Perhaps most important part of my job is to make sure that we have the right team in place in the right infrastructure, the right skill sets for the growth that sits in front of us. We are really excited to take on all of our operations, his experience in building costefficient production will be really important for us. We have built a robust team and process, the teams that run the different shop. It was a big part of what drove us to make the decision in our own facility. We wanted to leverage a Strong Organization and teams. Katie i want to talk about the commercial side of the business because some eagle eyes on twitter spotted at their worst evs spotted outside. Is there any update you can give us when it comes to your new customers . We have not made other announcements. The funny part, if you will is once they are out there, it is hard to hide them. But we are running a number of pilots. These pilots will take the course. How to innovate our service, we go on to provide service for a vast majority of customers, so that we see the beginning of the increase, meaningfully and demand in 2025. Katie it is a great point that they are hard to miss. Unfortunately, we have to to leave it there. Thank you for your time. Coming up, we will get a read on markets and the Tech Industry with sarah kunst. This is bloomberg. Katie lets go to the Broader Markets now because we are in the heart of earnings is in. We are joined by sarah kunst. I have to start with reddit. They jumped 37 or so. Initially they popped. Some of that has come up about 1. 3 at the moment. Im curious your read. This is their first earnings report. Sarah it started off strong. The bigger question with reddit is not, are people using it . The answer is yes. The question is, how much value is there . Increasingly, one thing i worry about is meta. Facebook groups are very similar , increasingly, to subreddits. I worry more about reddits core Business Model and its ability to engage users. Katie other social media stocks out there, it has been a tough go. What we have learned from snap, for example. How are you feeling about social media at this moment . Sarah snap has not made games the way he would think it would. A lot of those users are realizing that if they do have to get off tiktok, they are going to be focused more on it graham. I think snap is almost a whatsapp competitor. That is not bad from a loyalty perspective, but it can be really bad if your Business Model is advertising. A lot of the underlying peace here is, what do you do when youre business is advertising and you cannot command what you want from advertisers . Katie that is a fair point. Take a look at metafor example. It is still zuckerbergs name gain. If you think about the past few weeks and what we learned then how we digested it, is it if to say that was an overreaction . Sarah it is not necessarily an overreaction. You can be the biggest falling icicle. The reality is that there is a huge question mark about these Business Models. Not right now or in two years but five years and beyond, with gdpr and the ability to track and target ads, with the landscape changing, what does it look like for these companies . I do not think we have an answer to that. Katie we should talk about hoover. Hoover reporting earnings uber. Uber reporting earnings. You describe yourself as a reluctant uber bull. How are you feeling now . Sarah not ratio is so high. This is a company that you feel kind of bad routing for, but the reality is that mike any other name on the street, i genuinely do not know what i would do if i woke up tomorrow and uber did not exist. If cannot uber cannot make it work, then competitors cannot either. We do not have great public infrastructure. Once you are outside the east coast, good luck getting on a train or a bus to get somewhere. Uber does that gap for some people. The Delivery Business is still working. But also, the transit business, i think it is sort of a sleeper hit because it is making money when you look at those yearoveryear revenue charts. I think that they figured out how to be mostly profitable. I think this is a Utility Company and Utility Companies are not always highmargin businesses, but we cannot live without them. Katie uber is a utility. You heard it here first. You describe the importance of uber, and it has worked its way into a lot of peoples daily routine. It seems like it is a monopoly. You have uber and lyft. Is it possible for a competitor to break into that . Sarah lyft does not do a ton in europe, but everybody ago in europe, you see bold bolt. A lot of those brands probably get absorbed by one of these two companies. I do not think this is something where you end up with 10 competitors because these companies burn money. Katie we always appreciate your time. Thank you to sarah kunst of clio capital. Lets take a look at what is moving underneath these markets. We were just talking about rivian earlier, but of course we have to talk about tesla. Tesla is feeling a lot of pressure. It is down more than 30 . Today we are hearing from the Justice Department and from reuters that they are looking into whether they misled investors. We have reported a lot about this on the topic. The new thing is that they are considering specific charges, which is why investors are feeling a little bit more sheet today. They are not we have some being outnumbered, changing, but this does not justify the claims of elon musk and the Company Making that cars artfully driving. Katie that is obviously weighing on tesla shares. It has been a rough year. Lets talk about chips because intel also having a rough ride and getting worse this morning. We had news that the u. S. Was revoking the license for huawei. We had recently issued a statement by intel, saying that it expects secondquarter revenue to fall below the point of previously issued projections because of the new u. S. Ban. It may be limited. Qualcomm is saying a small percent of their revenue is coming from that, but the stock is definitely seeing a lot of pressure today based on that. Of course, doing that move to prevent china from advancing. If you look at intels stock, it has been a rough ride, so that is definitely not helping. Katie down 2. 5 or so. Lets talk about robinhood. They are not currently reported yet but the stock is lower in expectation. Everyone is expecting a good earnings report. We are seeing activity. Crypto is becoming a bigger and bigger part of the revenue of robinhood. We saw users rising for five consecutive months and going back to those 2021 levels. That was the retail craze, the highest Retail Sentiment that we have seen in quite some time. Of course, we have that warning that the treatment is different than assets and they should fix that, so perhaps that is good. Katie we will see how that translates into their earnings after the bell. Thank you so much. Still ahead, taking a look at the Companies Making the biggest social buzz. This is bloomberg. Katie time for social climbers, a look at the stocks making waves. First outcome are vetted seeing improvement to the advertising system that helped push sales higher than its first public earnings. We will talk to the company ceo in the next hour. A disappointing outlook in the latest earnings. Analysts saying the video makers 2025 outlook is looking lackluster. And a surprise net loss the First Quarter after the sales of logistics business. You can follow all the latest buzz on your bloomberg terminal. Coming up, we will speak with the ceo. This is bloomberg. How am i going to find a doctor when im hallucinating . What about zocdoc . So many options. Yeah, and dr. Xichun even takes your sketchy insurance. Xichun, xichun, xichun youve got more options than you know. Book now. Katie mothers day is this sunday in one of the biggest winners of the holiday besides mom is the floral industry. Its estimated about 75 of mothers days gifts will be flowers according to the National Retail federation and that is a 3. 2 billion dollar market. Here to talk about the blooming business is the ceo of an Online Flower delivery service. Put this into context for us. Is mothers day your super bowl . It absolutely is. Its our super bowl, black friday and christmas combined into one with a little bow on top. Katie there you go. What is the ramp up into mothers day look like in terms of how you are managing inventory and what you are marketing . How do you capitalize on that moment . Inventory is a fun game when you deal with perishable products. We have an end to end 12 day cycle to get the product in country and get it to the Fulfillment Centers and get it to our customers. We intend to ship 13 million stems this mothers day weekend. That will give you some perspective on what the scale up looks like four business our size. The ramp up starts and we plan months and months in advance and wait for the week to arrive and its here and we are in it. Katie so lets talk about inventory more. I understand its been a tricky subject and it sounds like it always is but especially when you think about the extreme weather patterns weve had with droughts in california. You think about rain in south africa. How is that translated into your business and the supply of flowers . South america where we import flowers from their and 11 countries around the world. South america has the largest concentration of floral farms and naturally the largest import base for us. They have also experienced a lot of change in weather patterns which has impacted the flowers. This makes our planning and forecasting cadence more and more tricky. The level of accuracy that our planning and forecasting teams have to bring to ensure that we have in a product to hit the sales number we intend to but ensure also that its not over projected so we dont spoil the product. Its kind of a science and math all combined in one. Katie for the uninitiated, how long can you keep flowers . How much inventory are you comfortable having on hand at any given time . Its seven days from the time it hits our Fulfillment Centers. Within seven days, we had to get it to our customers. This is to ensure that when the bouquet gets to our customer, they still have 12 weeks for them to enjoy the product and watch it bloom and watch it look as amazing as it does. To ensure that the customers get that experience and can enjoy the product, we aim to get it out, sold and shipped to our customer within 57 days. Katie have you thought about shortening your supply chain . You ship from 11 countries on wondering about the logistics of that. The reason our sourcing matrix is as bright as it is is because we want to ring all the steps to our consumers. Want to give them the po needs and tulips from holland and give them the beautiful roses from south america and we want to give them the luscious sunflowers from california and oregon. We want to give them all the gorgeous stems that exist in the world for them to enjoy other tabletop. That is not possible if we limit ourselves to sourcing from one place. This is our unique proposition. This is how we differentiate and stand out in the floral space. We take a position on the them tory and we have extensive supply Chain Networks and assist and an extensive fulfillment Chain Network which insures the product you need and that you purchase is what we deliver to you. Katie you can only get certain flowers from certain regions and it makes sense to diversify from that standpoint. Im curious when it comes to your business, how much of it is shipping direct to a customer and getting that order to their business or doorstep versus a Grocery Store or where you can buy actual flowers of the store yourself . We are a floral gifting brand so our business is for sending flowers. Its to ship flowers to the customer. We do see a lot of our customers upwards of 18 that do what we call self selling. They love to enjoy the flowers and send it to themselves just because. Katie i like that, that should be a holiday as well. You have your super bowl, your black friday and christmas coming up on mothers day. How is this mothers day shaping up compared to previous mothers days when you think about the past few years . We go into this holiday with a ton of planning and what we continue to see is that 70 of the shoppers are searching for mothers day gift. 22 we get two days before and 16 wait until the day off so they make it hard for us and we are here from them. Urbans dander urban flowers will provide beautiful flowers until saturday and seven sameday cities until sunday so get your orders in. Katie if you are ordering on sunday, youre probably too late. We still have seven sameday cities. Katie you should still be ordering ahead of time. We are talking about mothers day but im curious from your perch how you view the state of the consumer . We know inflation has been high for quite a while and the level of prices is still much higher than it has been in past years. How has that affected your business . It has definitely impacted our business. 70 of the demographic that our brand resonates to or speaks to is that 1834. We know the economic downturn and inflation has impacted them. But weve also seen is that the customer is willing to pay for quality and willing to pay for premium design and the premium experience. As long as we can guarantee them a beautiful product on time, delivered to their doorstep, essentially sending and helping them communicate the sentiment they want to say with their bouquet, they come to us and they want their products. We will continue to keep working on giving them back. Katie i really enjoyed this conversation so good luck this weekend. Lets get a check on the markets. Abigail we have a small decline on our hands right now. The s p 500 is heading potentially to its first down day and five but its a small decline. A little bit of a backup. Its up about two basis points on the course of this david over the last few days, we have had yields in after the most recent fomc meeting so a little bit of a switch there. We have the yen against the dollar and of course, the boj is signaling they could possibly make a surprise move but again investors are not taking that to seriously and oil has been flipflopping. It was sharply lower earlier and we had the report out that showed there was a greater drawdown than expected so off the lows but down about 0. 4 . The s p 500 is hitting an interesting level of resistance. Thats essentially 5200. It has been a line in the sand for the s p 500 briefly making it above that level but not with any conviction. 5200 is holding right now and we watch this level to see whether or not we will see the s p 500 breakout or potentially go back into what could be a range. As through its weighing on the index today, lots of big names, trip advisor plunging 30 , the worst day since 2011, since they went public and its unlikely they will be taken private or there will be m a action. Uber is down slightly, tesla down 2 on a renewed story around the doj looking into whether or not they misled investors and consumers on their selfdrivingevs and intel is down 2. 4 percent on a double guide down. They got it down revenues and profits two weeks ago and today, they guided down once again to the low end of the range based on the fact that the u. S. Government is banning both intel and qualcomm from selling its chips to huawei. We had intel bringing their guidance to the low end of the range with the stock down 2. 5 . Katie thank you so much. Tiktok challenge the u. S. Governments divest or banned law we will hear from the former u. S. Treasury secretary Steven Mnuchin about his interest in buying tiktok. Later today, tune into another episode of the circuit with emily chang who speaks with the google ceo on the future of ai at 6 p. M. In new york here on bloomberg television. The challenge for everyone and the opportunity is how you have the notion of what subject is real in a world where there is a lot of synthetic content and thats part of what will define search in the next decade. People often come to google right away to see something they saw somewhere else and if it actually pat happened. Its a common pattern and we are making progress but it will be an ongoing journey. Super excited to open up my diploma from Southern New Hampshire university. Im nervous, im excited. [man] okay, lets see it. Lets see it. Oh my gosh. Jesus suarez, i did it and its here. group cheers [narrator] next term starts soon. Visit snhu. Edu. Visit snhu. Edu. At enterprise mobility, we never stop looking for new mobility solutions. Because sometimes the best road forward, is the one you didnt expect. abigail coming up, Harley Finkelstein the shopify president joins bloomberg tv at 11 00 a. M. New york time. Katie its time for our daily wall street week conversation. David westin spoke with former u. S. Treasury secretary Steven Mnuchin at the Milken Institute global conference in los angeles. They spoke about the health of regional banks and tiktok. Ive been in the banking business for a long time during the financial crisis i bought three banks and credit the largest bank in southern california. Ive known new York Community bank for the last 10 years. This was a merger of three institutions. Then coming together, they didnt have the proper procedures for hundred Million Dollar bank and they ran into issues with real estate. We raised over a billion dollars of capital and a large portion of that will be to build robust reserves. Weve come out with a threeyear plan to restore profitability to the bank. By the end of 2026, the Management Team will deliver on a plan they guess the bank to 1112 return. And 1112 to make a wellcapitalized bank. David have you learned anything about the about the bank since you bought it . You always learn a lot and now that weve been in there for the last two months, the good news is we put in a new ceo. He had been ceo and a controller of the currency so he is extremely wellqualified for Something Like this. Hes been a manga for talent so hes brought in a new Management Team, new cfo and new legal counsel. There is some very good people that were at new york and unity bank that will be part of the team. We now have a turnaround situation where we will rebuild this bank. David we expressed interest in tiktok and now we have legislation. Unless they do something different, they will have to sell it. Are you still interested in tiktok and will they get that deal done . Im still very interested in buying it and to the extent they want to sell it or spin it off, we want to pursue that. I support that Congress Passed the bill and they signed it into law. This is an incredible, overwhelming support with republicans and democrats in a the only thing that everybody agrees on. The fact that its on 160 million phones is a security issue and the u. S. I see it is being addressed. David one of the issues of the algorithm which is very powerful. Does the deal still work if the algorithm doesnt come with tiktok . The Chinese Government has been very clear that they wont give an expert license on the algorithm and i understand that. We have Sensitive Technology and we dont want to transfer to them and they dont want to transfer theirs to the u. S. I have spoken to a lot of Tech Companies about rebuilding this. I believe the algorithms could be rebuilt. My plan if we were to purchase it would be to rebuild the technology under u. S. Leadership, make sure its all disconnected from bytedance Going Forward and that it is very robust and secure. David you might talk to former President Trump about this possibility so do you have a sense of where he is on this deal . I havent talked to him since this law has been passed. This started under his leadership so im sure he understands the National Security issues. Under his leadership is where this started. David you are active now as a private investment banker. We had tiktok is a possibility, we have new York Community bank done. What is the connection . What sorts of deals are you looking at . We have three areas we focus on where we have a lot of expertise. The first is technology with a big focus on National Security and cyber along with myself and the former chairman of the joint cheese is one of our partners. We also have the person who ran the cyber tests for the government. The second area is financials. I have the general counsel at treasury. Ive been in banking for 40 years and the last areas entertainment. In my previous light, i made a lot of entertainment investments. We are a big believer in what we call new content and tiktok fits in with that. David the Entertainment Industry has a lot of turmoil we see it everywhere we look. Disney has had difficulty so there is a lot of challenges. What do you make of that . What is the future for the Media Entertainment business . To the extent these companies can execute properly, there a Good Opportunity particular given how low some of the values are on traditional media. I dont think their traditional media will go away overnight. [no audio] from when we grew up, there is no difference from network tv to streaming. Its not just streaming, its too short form video and longform video we see on tiktok and instagram and we see on youtube. There is a whole new distribution model. Having said that, great content has a lot of value. A lot of these Media Companies have an enormous library of great content that can be shown. Distribution is important issue but there needs to be a transition. Katie that is a former u. S. Treasury secretary Steven Mnuchin and david westin. Tomorrow, we will hear from former House Speaker paul ryan. This is bloomberg. Katie movie theaters may need to pull more stunts to help box office sales. Hollywoods latest blockbuster the fall guy saw a soft debut in that is a worrying trend ahead of amc earnings after the bell today. Kevin near will break it down for us. I didnt see this movie and i dont know if you did but not a lot of people saw it. Put that into context what it means for amc and how beholden they are to the hope of a blockbuster . When it comes to the fall guy, i wouldnt put too much emphasis on this one movie. Following the strike last year, we knew the slate would be weaker this year so everyones confused if people are going to the movies or if they want to go to the movies. When you think about the summer which is typically the most important time for the movie theaters particularly amc being the biggest, its normally headlined by a big marvel movie that kicks off the summer and gets people talking about going to the movies. Generally, you will see a movie and another preview for movie you like and that kicks off the summer slate from there. Katie this is a statistic that stopped me in my tracks. Analyst warm its possible we dont see any film top 1 million of the box office this summer. We havent seen that in almost two decades. You think about what we had last summer, oppenheimer and barbie and seemed like the momentum hasnt been able to continue. How much of that can we blame on the writers and actors strike last summer. Very much so, it will be a wait and see with some films coming out this year that are looking promising whether it be deadpool in july or further into the fall with a wicket or a joker sequel. Those movies all look very strong to us. Looking back, i dont think anyone was thinking about barbie as being a milliondollar movie. It is very much supplied. We still think demand is quite strong and we see that with how much market share the premium formats are taking whether its imax or boosting the ticket price . Rather than being a lack of billiondollar movies, there is not enough with foot traffic down. It is profit because they are not selling food and beverage which is where they make their profit. Katie its a great point that maybe there will be a dark horse that emerges like a barbie but that remains to be seen. Thank you so much. Lets take a quick look at some stocks hitting highs today. We have two offerings, mckesson hitting deadheading a 52week high after beatings earnings estimates. Thats good for a 1. 4 rally. You have unicredit which had a 52 week high earlier after bnp paribas outraised its price target on the bank to a street high of 52 euros been giving back those gains right now. Is currently down about 0. 6 after a strong start to the day and we will keep following that one. You look at the Broader Market right now and its a quiet day on wall street. We are reversing some of the losses we started with. The s p 500 is currently higher to the tune of less than 0. 1 but we are about unchanged and you look at the nasdaq 100, even more so, currently sitting in the green, up 2. 0 . Philadelphia Semiconductor Index had been the leader earlier today but not so much right now. Currently just about unchanged but still a flipped back into positive territory for the big benchmarks. We will see if the momentum can continue. Coming up, we have the reddit ceo and he joins us next. That does it for bloomberg markets. This is bloomberg. From the heart of where innovation, money, and power collide, in Silicon Valley and beyond, this is bloomberg technology, with caroline hide and ed ludlow. Hyde and ed ludlow. Ed this is bloomberg technology. Caroline full earnings coverage ahead. And were going to be kicking off the show with the reddit c. E. O. Steve huffman. Ed and well turn to ridesharing and sit down with the c. E. O. Of lyft. Caroline and well hear