Alphabet c. E. O. Well break that down and discuss so much more throughout this hour. But first, we turn our attention to what is happening more broadly on the markets. Maybe we look at this. Bitcoin on the downside versus the u. S. Dollar. A stronger dollar and weve seen kind of lackluster moves on the benchmark more broadly. A look at the nasdaq trading flat. Yields, as weve been seeing on the 10 year, up about two, three basis points. A big flood of money on the 10year debt. How will that be taken down . Apply goes up. Maybe a little bit of a selloff. Huawei made in the United States by intel, qualcomm and were going to dig into that story later. But i want to show that were bouncing off our lows. What have you got in the microperspective . Ed earnings. Outside of earnings but lets start there with the tale of two ridesharing apps, uber and lyft. Uber has a lot more to it. In its quarter, there was issues of seasonality, regionally, it was a bit weaker and the stock was down pretty significantly. And the little brother of rideshare, lyft. They were strong. It was stronger than expected and theyre seeing some bumping activity for the riders themselves, not just rider growth but stickiness, the amount theyre using it. And rifton. Its a difficult one. Its about the future later in the hour. Is this really going to plan and then theres reddit. The debut earnings. Shares higher for reddit. Lets bring in prescott scenario, steve huffman. Youre doing well. The ad environment seems good. But i want to start with the next big thing and that seems to be in the user economy. That seems to be your focus. Tell me about the user strategy. Steve the user economy is the family of products and futures that were building to facilitate transactions between users on the platform. So, user to user gifting, user to user subscription, things like that. We think theres a ton of potential here. One of our accusation at reddit is the only saying is the only thing that scales with users is users. The ad business is great but we would love to have another Business Model to sit alongside it and thats what the user economy is. Caroline the selling of data and licensing to some of those big businesses that are creating Large Language Models basing on the data. How infinite is that revenue stream . Because once the models are trained, how necessary is it to keep on licensing . Steve so theres a couple of ways to look at this. First, the potential value here is i think quite large. And between us and other folks in the market, were actually still developing that. Were finding increasingly folks coming to reddit and who what were seeing, big picture is in the a. I. Era where increasingly content online is written by machines, theres this increasing premium on content perspectives, conversation that comes from real humans. And thats what reddit provides. So so far, weve done one major content licensing deal with google. But were talking to others as well. But your question is is it a onetime thing or ongoing . I think whats really important here is folks want realtime access to up to date information, conversation perspectives. Imagine a Search Engine that stopped indexing in 2021. It wouldnt be very helpful. So i think that real time feed is really important. Ed steve, you took the interesting step to ask redditters to submit questions. And some of which you answered on the call. What is tell justification in working capital . I want to take that question and apply it to a. I. But also, it helps us more about ma what are you guys going to do to increase the Technology Offering on a. I. Steve our first prior is to invest the business. So they continue to develop the core reddit product, the user economy which we discussed the copter platform, a. I. Efforts, all of those things. Our second priority would be m a. Its going to help advance our initiatives. And potentially, to expand it as well. Caroline lets talk about expansion. In particularly internationally, steve. Because theres much talk about how youre basically translating, able to bring what is all the reviews, the content, the discussion groups, not just to those that are writing and speaking in the english language but in french, in european countries. How is this likely to be enabled by a. I. But add to the scale of International Growth . Steve well this is really exciting. Not that long ago, we didnt have the capability of translating our content at human quality. But with todays Large Language Models, we can do that. So we can translate what is today our mostly english corpus into just about any language. So were doing that in french right now and testing that in france and its going very well. And so, almost immediately, french speakers can see the entire reddit corpus or consume the entire reddit corpus in english. And a lot of reddits content is universal. Its just people talking about life. But even the content that is maybe reilly specific to regionally specific to america, its still very interesting to read and vice versa. A lot of people around the world in different countries, in different cultures to communicate in their native language. Ed rob bloomberg was speaking to the reddit c. E. O. Steve huffman. Things are going well right now, it seems. One of the Technology Changes at the start of this year and even before that was that google started applying its work in Large Language Models in a. I. To its Search Engine and there is a school of thought that reddit was a beneficiary of that, that just within search, reddit becomes more commonplace, higher up, the results that had given. Can you give us any sort of granularity on how thats helping you in keeping the redditer base . Steve these are the things that reddit provides. And Search Engines like google 10 years ago, last year or today, tomorrow, help people find that content on reddit that theyre looking for. Those answers theyre looking for. Those communities theyre looking for. I look at this as natural evolution. Search engines are getting smarter, theyre getting better, theyre getting more effective, which means theyre getting more effective at helping users find what theyre looking for on reddit, which of course, benefits our platform and our business. And so, i think these are all i think welcomed evolutionings but reddits been a net beneficiary of search for a long time. And i expect that to continue. Caroline how much did the i. P. O. Help draw people to the platform . How much was it the p. R. Event and boosted some of the community there . Steve im sure thats an aspect to it its hard to say. Reddit primarily grows through a word of mouth anyway. We dont really do consumer marketing. And so i think any time were in the news, that helps and the i. P. O. Is a lot of news. But look, the reason i was most excited about the i. P. O. Is that we are able to include our users as investors. Our users have this deep they create the community, the culture, all of the content. And for them to have the opportunity to be actual owners, that was our dream. And that was one of the main reasons we went public in the first place. Ed steve, as returning founder c. E. O. Of reddit, whats your one personal goal for this year . Something you want to achieve . Steve well, we maxed out two of them. We got the Community Public and i had my second kid. So for the rest of this year, i want to deliver on some of the product initiatives that ive been very excited about. So, developer platform then user economy, the Machine Translation it is a we discussed. These are all things in the daytoday building of reddit that im very excited about. Caroline steve, congrats on the second kid. Steve huffman from reddit joining us. Next, we will hear from the alphabet c. E. O. Ed we take a look at shares of the firm. Lower again from affirm its been a season of if you dont beat expectations or your Prior Guidance you go down lower. Continued about Product Differentiation with the firm as well. Well continue the earnings coverage much more ahead. This is Bloomberg Technology. You know whats brilliant . Boring. Think about it. Boring is the unsung catalyst for bold. What straps bold to a rocket and hurtles it into space . Boring does. Boring makes vacations happen, early retirements possible, and startups start up. Because its smart, dependable, and steady. All words you want from your bank. For nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled. Which is pretty unboring if you think about it. Caroline lets talk opening a. I. It is opening a future that can search the web and slight sources according to a source. It would ask chat gpt a question and uses details from the web with citations. This could be competing head on with a. I. And of course, google search. And speaking of which, google and alphabet c. E. O. Sundar pichai sat down with emily chang talk about some of the growing pains of google searches adaptation to the a. I. Revolution. Sundar a. I. s going to do that. So, we view this as challenge and i actually think the people who struggle to do that. So doing that well is what will define a high quality product and that is what makes a search successful. You make a ton of money on ads generated by searches. If a chatbot is giving you chances and more links. Are we in the midst on assault on googles models . Sundar we always want choices. And thats a fundamental need. And i think weve always been able to balance it. As we are rolling out a. I. , weve been experimenting with the ads and the data received shows those fundamental principles will hold true during this phase as well. The images that gemini generated of asian nazis and black founding fathers, you said that was unacceptable. If you look at any pictures of the founding fathers, youre seeing old white men. People are calling this woke a. I. Its happening across the industry. How did the model generate something that it never saw . Sundar we are companies that and there are questions that people come and say show me majors of School Teacher or doctors or nurses. We have people asking this question in indonesia or the u. S. Like how do you get it right for our global user base . Obviously the mistake was that we all applied, including case where is it should have never applied. So that was the somebody got it wrong. Ed that was alphabet c. E. O. Sundar pichai and emily chang. You can catch the full interview tonight at 6 00 p. M. Eastern on bloomberg television. Coming up, we continue earnings coverage and speak with spotify president as the Company Reported a net loss at the shares are getting absolutely hammered, caroline. Caroline lets look at some others that are under pressure. Qualcomm still down. 4. Intel suffering harder. Down by almost 3 . The breaking news that we had yesterday that the u. S. Is curtailing chip sales for the phones, the laptops of huawei. And this is going to mean that intels guidance is going to be a little bit below the midpoint. So, the global conversation continues later. This is Bloomberg Technology. Caroline lets just check in on the shares of shopify. Because theyre down the most on record after the Company Forecast lower profit margins. The Company Reported a net loss in the First Quarter after the sell of its Logistics Business last year. Joining us now to break down the results, harley finkelstein, shopify president. And harley, i remember speaking with toby and he said any time anyone talks about the share price in the office, well, everyone has to be bought doughnuts. Harley tidbits to be specific. Caroline yeah, harley, i mean, what does it feel like when you see the shares down that hard . Harley oh, i mean, weve always managed the business in a longterm way. What we actually is i came on the show and i spoke with ed about. This new shape is unlocking our potential. Were helping all different types of merchants take more and more of our products. We generate almost 2 billion of revenue that was up 23 yeartoyear. And very important, this macro environment, we have a Free Cash Flow for the quarter. It doubled from q1 of last year. So youre seeing one of the best versions of shopify with a ton of opportunities whether its enterprise, physical retail, international. We are very excited about what we did in q1 and the future of this company. Ed harley, the anxiety from investors about fitting margins. We all set that as the baseline. One thing youve been focused on is marketing. With accounts for that in part. Give me some specifics. What kind of marketing are you doing . And youve also said its going to pay off in about 18 months time. How do you know the marketing spend will pay off . Harley first of all, when we think of marketing the same way we think about building products. Build the best internal tools to drive it through data and the results are evident. One of the things that we really believe is that shopify needs to be agile on a times countercyclical. When we see opportunities for us to take advantage and gain more market share across any of our core products, were going to do that. And i think what differentiates shopify from a Growth Perspective is that the way we interpret data, the way we experiment actually helps us to win. And we have multiple drivers of this growth. But the best is we drove a nearly 130 increase within one of our marketing channels from q4 to q1. Were going to take those and back to the question that caroline opened with. Thats the reason we dont really care about the daytoday reflections. And shopify is becoming the Global Retail company. Ed next month, youre going to have a big event and im right in saying its the first inperson event at least since before the pandemic, 2018. That is a marketing expense but there must be a reason for doing it. Harley certainly. I mean, we are thriving in this remote first environment and we see immense value in getting people together as well. So, summit brings together our team, our partners, our top 1,000 developers from all over the world. And, you know we think that this remotefirst philosophy and working model allows us to recruit the best and the bright protest all over the world but a key component is also supplementing it with a few real life events and we have not brought the entire company together in person since like 2018. We think its important to do so, especially because we can also get our developmenters in the room, explain to them all the opportunities. And then they go back home and they continue their businesses as well. Caroline are layoffs done now . Harley we have no plans to two additional layoffs. We have been able to grow top line. Weve been able to grow bottom line. And were doing so with a relatively flat hess count. Flathead count. Caroline and youre being countercyclical right now. Tell us how many headwinds are you experiencing in the world of the consumer right now . How reticent are they to shop . Harley its really important because the state of the consumers is something thats everyones thinking about. We see the consumer remaining quite resilient. What we do see is these consumers are buying from brands they love and feeling affinity to. All those brands are all on shopify. But a new area of business are those less discretionary brands like necessarily or nestle or bark box and when you combine our enterprise offering, shopify point of sell which is the physical retail product we have and b to b and all these new Merchant Solutions youre beginning to see theyre going to lead to serious growth. And thats why were optimistic. Ed shopify president harley finkelstein. Thank you. Were going to hear from the rivian following the Companies Earnings report. Caroline . Caroline lets talk e. V. s elsewhere. There was nuance to the tesla news. U. S. Prosecutors examining whether tesla committed specific kinds of fraud. This is Bloomberg Technology. Ed welcome back to Bloomberg Technology. Ed ludlow in San Francisco. Caroline Caroline Hyde right here in new york. They were flat, nasdaq 100 on the day a little bit of a cautious tone. Weve had four Straight Days of gain but were also trying to digest a picture that is not giving us much. More some of the micro headwinds when you think of what chipmakers are trying to sell in china on the day when it comes to tech stocks. 10year yield. This is one of sales. Thean auction of 10 year debt off by about two basis points. Bitcoin down there. Maybe thats also to do with a strong u. S. Dollar but also whether those etf flows cooling down. Tesla off. We know that u. S. Prosecutors have been looking in the way in which tesla and elon musk misled drivers. Arm holdings, up. This is a company that its current valuation is 90 times future earnings of at the moment. Many wondering how they live up to this valuation on the market, how we baked in too much euphoria around a. I. For this chip designer. So too is airbnb. Explosion bookings growth that was seen in 2020. Ed lets head out to d. C. And talk about tiktok after china made it clear it wont comply with the new u. S. Law requiring it to sell the video sharing app saying for the first time in history, congress has enacted a law that subjects a single named speech platform to a permanent nationwide ban and bars every american participating in a unique Online Community with more than one billion people worldwide. It is not a surprise, right, chris, the legal challenge, but the question to be considered by the courts is whether or not this is an outright ban and i think the academic consensus is that that will be something that the court looks that closely. Thats right. Tiktok is making a few different arguments here saying that the law that was signed infringes on the First Amendment. It represents an illegal taking, and, you know, tiktok is saying that its not feasible for them to separate tiktok u. S. From the rest of the tiktok, you know, global community. And so, really what tiktok has done here is theyve just bought a lot of time. By filing this lawsuit because theres no way this is going to be resolved by next january. Theres going to a long court battle. Regardless what happens, its going to be an appeal and go to the supreme court. Caroline ok. On this sort of time frame, many feeling that an expedited will not come until the fourth. Fourth quarter. It feels the sentiment is this isnt going to be a sales process. Chris right. They have no of divesting tiktok. Theyre digging in for a prolonged legal battle and with the hope of a Trump Administration that might be more friendly to them. So the law says that they need to divest by next january or theres going to be a ban in the United States. The Legal Process wont be resolved by then. If they get up to the point where the ban is supposed to go into effect, theyll seek an emergency injunction to prevent that ban from going to effect. And it will most like i will be granted. And so were a long ways from this being resolved. Ed chris, what are the players here . You just outlined the shortterm and longterm process. But if they have filed a legal challenge, who are they challenge something whos on the other side of the table . Chris its interesting because they filed their lawsuit against the attorney general, merit garland. D. O. J. Is charged with enforcing the law. And so, you know, in order to bring illegal lawsuit, they needed to find a defendant that they were going to sue, so they chose merritt garland. But theyre challenging the law that Congress Passed that biden signed. Caroline this is just more broadly should be regulated in the u. S. Rather than banned. But chris, im interested from a legal perspective. Can we read anything about what happened to montana . Can we see that sentiment will be on the side of the First Amendment perspective even though were hearing from tiktok that they couldnt separate the businesses anyhow . Chris theres going to a lot of support for tiktok. Its already coming. And its going to span the political spectrum, the economic spectrum. You have, you know, people who advocate for free speech saying that tiktok shouldnt be banned. You have people who are saying that the government hasnt made, you know, a legitimate National Security argument to try to ban tiktok. I would expect that theres going to be a lot of amicus filings in this case. And then you have the state cases that are playing out like you mentioned. And so, you know for the foreseeable future, theres going to be a lot of litigation over this issue. Ed thank you very much, chris. Former u. S. Secretary secretary steve munition mnuchin is still interested in buying tiktok. It could be replicated. Listen to this. Still very interested in buying it and to the extent they want to sell it or spend it off, we very much want to pursue that. I support that Congress Pass the bill and has now been signed into law. I will say this has had overwhelming support with republicans and democrats. This may be the only thing that everybody agrees on. The fact that its on 160 million phones is a security issue. Caroline now, one of the other people who reported to be interested in getting in on buying with mnuchin is eric schmidt. Hes not interested anymore. Just take a listen. My personal view on this is youre better off regulating than banning or a judicial action. All the Big Tech Companies are in various legal fights. I would refer to see a Regulatory Regime that has the right incentives. My own view of tiktok is its not social media, its television. And you can regulate television by the equivalent of the equal time rule but somehow were not having that conversation. Ed lets get back to earnings and rivian, posting a wired than expected adjusted loss the First Quarter. A break down with rivian c. E. O. Rj scaringe. Rj its a false metric and it just causes a lot of noise. So wed look to focus on the product. Were two years out from launch. And our goal is to ramping production as quickly as possible so people dont have to wait in the case of our r1 products. Ed rj, in your filings is the proportion of the r1 generation that at least versus bought seems to be going up pleas versus bought seems to be going up. Is it a good thing for rivian in this environment where youre between the two growth phases. If more r1 generations at least. Rj yeah. We dont disclose the sales on lease. Weve expand the lease to offer the r1s as well. Its now 32 states. Now that the key to recognizes leasing does have an advantage for electric vehicles in that any lease qualifies for the 7,500 tax credit and of that leads to a disproportionately large number of leases given the benefits of that credit. Caroline and i do want to talk a little bit about whats going on with the factors. Because you shut down some of the Assembly Lines to make component upgrades. If you could walk us through the math and the path forward about thousand that gets you that gets you to the growth profit fourth quarter. That would be helpful. Rj yeah, we started production in late 2021. And this was the first time that there had been no vehicles on the line. So the start of april, the plant was really empty. We drained out everything that we were producing with the largely original supply chain and component design. We made a large number of changes to the plant. And then also had a number of new suppliers come on board replacing existing suppliers, part designs, component designs. And thats a step change improvement in our cost structure both at the bill of materials level, but importantly, also at the conversion cost level, allowing the plant to run more efficiently. And we did a similar shutdown with our edd program and that was something that we did at the beginning of 2023. We took about 25 billing material cost out with that shutdown and the scale of change weve made with r1 here is very similar to that. Caroline great interview, ed. The rivian c. E. O. Rj scaringe. Coming up, we will be joined by logitech c. E. O. About gaming on a. I. So much more. That conversation you dont want to miss. This is Bloomberg Technology. 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. Ed youre looking at a live shot at the principle room. Tomorrow is the Bloomberg Technology live event in San Francisco. Check out the q. R. Code for all the details that you need. This is bloomberg. Caroline lets talk logitech. Its linking its products to guess what . Artificial intelligence in a whole number of ways. Like the new a. I. Prompt software which will turn your logitech keyboard, your mouse into a shortcut of chatgpt. For more, Hanneke Faber just finished her first 100 days as the new c. E. O. Coming by here. And interested to hear about how quickly youve had to evolve with a. I. Is that something that you were able to be nimble on . Hanneke yeah, a lot has happened even in my first 100 days there which has been fun. But a. I. Is definitely one the tailwinds for our business going forward. Hybrid work is a tailwind for us as far as gaming and continuing to grow. But if i look at a. I. , theres really three things were doing. First of all, like everyone else, its helping internal productivity. And were seeing especially with our software engineers, some really good productivity gains from using some of the new a. I. Tools. Then when we look at our products, two things. In the software we Just Launched the new a. I. Prompt builder which is a shortcut to chatgpt. If youre a big user of chatgpt, you have to go in and out and this is a shortcut so that you can stay in the flow which is really important for our heavy users. Caroline and only open a. I. s of chat gamut about the snores. Hanneke for now. Im sure more will follow. And then one im probably most excited about is actually in the video and audio space where weve for quite a while have been using these large data models to really step change the quality of audio and video. So, maybe two quick examples, headphones. Our latest generation of headphones does twoway noise cancelations. So lets say were on the phone and im at the airport and its super annoying because youre hearing every announcement at that airport. The new headphones do two way noisen both sides. So now its smart enough to recognize my voice but to tune out Everything Else thats going on around me, which really, really step changes audio quality. We love that. Caroline yeah. Hanneke on the video side we Just Launched this new videoconference tool for offices called sight. Its a camera that you set in a large meeting room. Im sure youve been in meetings. Theres 12 of you of one side and one guy on the other side thats left out. This acts like a intelligent producer in the room. It swivels around to focus on the right person. But again, also audio. It swivels to you when youre speaking but not when youre opening a packet of crisps which is quite important. Caroline im afraid ed, go ahead. Ed, no real quickly. I think weve run out of time but like gaming still a third of your business and as we reflected, its really hard on there. Sum up the environment. Hanneke its a real tailwind for us. Gaming was up 8 for us in the last quarter. The future of game is really bright. Caroline logitech c. E. O. Hanneke faber. We wish we had more time with you. Ed, whats coming up . Ed lyft shares rallying up to reporting results. The b estimates. We have the c. E. O. Coming up next. This is Bloomberg Technology. Ed Ridesharing Company lyft reported results that beat infer expectations sending the company higher. Joining us, the c. E. O. You made improvement in both rider retention and new riders. But actually, i wanted more specifics on what you did to achieve that. Yeah. So i break it down like this. First of all, good to be here. Second of all, i break it down like this. First, youve got to get the basics right. We call it rideshare perfection. Our etas were faster than in four years. And then you can do things like innovations about how fast can we pick you up from the airport . The last time we talked we had just rolled out this ontime pickup promise and less than 1. 5 of people are being picked up so late that we had to give them the 100. And after the basics to innovate, and then you partner up with people with chase, delta and others. You put all those things together, it works really well. Ed you are mobility first. Caroline what are the partnerships do you have in mind . David so i probably wont be able to ed you speculate on new partnerships, but i can tell you this. I spent in my prior career a lot of time in africa. And a lot of countries in africa, if you want to go fast, you go alone. But if you want to go far, you go together. So, you know, delta, amazon as a partner, we pick up some of their folks as a distribution center, linked in. Skymiles and we help move their plight crews around in Early Morning hours. The partnerships chase, sapphire. And when you really go deep with someone t like a relationship. You can find all sorts of amazing things. Ed those are the groups of people that are moving. I spend a lot of time thinking how people move from a to b. Tesla will show us a robo taxi in august. Your competitor uber has this relationship with waymo. I dont think you have a formal relationship. But if tesla comes to market, you must be thinking about that long term. David yes, but first, robot taxis are going to happen. Theres no question. We know theyre happening you see them on the streets. But first, someones got to make the tech. And then theyre going to have to build the car, own the car and run the network. These are four different pieces of business that people have to do. We run the network. And its a very expensive, very Expansive Network that we run every day, two million rides a day. So if we need to incorporate and of course we will, autonomous vehicles, thats great. It will increase a number of different ways. But i dont really look at an Initiative Like theirs and think it worries me. Thats really interesting. Its going to expand the market and i would say for them, gosh, thats a lot to take on all at once. So well see how that goes. Caroline david, innovation was what youre just talking about. Would you ever reconsider innovation but taking more than just people, food, groceries . David our real focus is on moving people around and get them out of their house. And this is where i get a little philosophical. If you read any of these articles about the health of our nation, we talk about political divide but a tremendous amount of loneliness. So i see that really is going to be our focus. It doesnt mean we also get people out on bikes. You and i are just talking about it. Thats important as well. But i really think getting people out and about is really our focus. And then we can partner for other things to the extent that is important to customers. Ed we were going through the numbers and trying to see if it proved youve taken market shares from uber. Diarra is up next. Whats your message for her in terms of whether he should be looking over his shoulder in the progress youre making . David its so funny. People love to talk about this sort of headtohead thing. Our competition is people staying at home. Thats our competition. I want more people out. I want them connected with other folks. Its a more interesting way to run business than just always focus on your competitor. Theyll go through our ups and downs. Its fine. Ask him about all the Different Things hes got in mind. Were going to focus on our drivers and riders. Caroline on your mind, gen z, cooperate travelers, whos riding your bikes, david . David so a lot of women are. We have women plus connect. One of the great quotes i heard from a friend is what he said why do you like this women plus connect driver connection onfully and she said i can finally take a nap on rideshare. Weve had Something Like 20,000 new women join the platform on the driver side just since weve started the lyft program. So super important. Another thing thats really interesting. Were seeing commuters happening and party time. People are getting out. If its after 5 00 or 9 00, its going great. I am here for party time. David risher, lyft c. E. O. Thank you for your time today. That does it for this edition of Bloomberg Technology. And weve got a party tomorrow. Ed a big show to recap. Check out the pod. Putting you on apple, spotify, and the bloomberg platform. From San Francisco in new york, and new york,this is bloomberg her uncles unhappy. Im sensing an underlying issue. Its tmobile. It started when we tried to get him under a new plan. But they they unexpectedly unraveled their price lock guarantee. Which has made him, a bit. Unruly. You called yourself the uncarrier. You sing about price lock on those commercials. the price lock, the price lock. so, if you could change the price, change the name its not a lock, i know a lock. So how can we undo the damage . We could all unsubscribe and switch to xfinity. Their connection is unreal. And we could all unexperience this whole session. Okay, thats uncalled for