Applico liquidations as prices fall. We look at what is behind bitcoins volatile moves. Gearing up to be the biggest ipo of the year. Chipmaker arm is set to line up 28 banks for Public Offering. We will bring you the latest on the company and who else is arguing the ipo. Its been a volatile week for markets. Abigail doolittle, you do it so well. Abigail we have had stocks all over the map. Apple flipping to the upside, down earlier sharply, weighing on major indexes when they were down across the board more than. 5 . At this point, apple is up slightly. We have heaviness on the market from other big tech names like nvidia, microsoft, and metaplatforms. Nvidia will be reporting next week. Will the stock that is up more than 190 on the week, will the results really deliver what investors are looking for relative to ai. The week is certainly risk off. Stocks down for a third week in a row. The nasdaq 100 is down 2. 4 . Its off of the lows at the lows we were heading to the worst week since march 10th. That is still true for the s p 500, the broader index. The nasdaq 100 now heading to its worst week in about three weeks. Again, three down weeks in a row. The big trend of the rally this year, we are seeing continued consolidation. August is typically seasonally difficult. Today is options expiration expiration. Nvidia relative to broader markets on the year, big outperformance with the s p 500 up 109 . Problem ago it was up 230 . The big question is coming next week when the earnings come out and the outlook, will it live to the perfection that is essentially priced into the stock even with it off the highs . Caroline well said. We will brace ourselves for earnings that have been coming fast. Rather extraordinary earnings coming after the bell today as well. We want to talk about this with him refresh, Senior Research analyst at clear bridge. Its kind of a perfect storm. Countering the talk of liquidity, worries about china, the bond Market Selling off. Is it ok to stick with Technology Holdings now . Hilary thats a good question. With the 10 year rising as rapidly as it is it makes it hard for technology to outperform. Especially the long bond technology. But at the end of the day the fundamentals seem to be set to improve. So, i would look to the current environment to build positions, to add possessions. Caroline talk about the fundamentals that when you over. Artificial intelligence, idiosyncratic elements . Or, are you talking generally the economy in the u. S. Is not as dire as the some thought . Hilary there are a few factors. Artificial intelligence absolutely plays into it. I am of the view of rolling recession. I think technology has been in a mild recession for the better part of the last year. Without the recession having actually materialized i think tech was poised to improve. Enterprise tech was poised to see an improvement overall as budgets have been set for a recessionary environment. In addition, in terms of future earnings there were a few green shoots. Some companies talk about the optimization work, the costreduction focus of customer starting to wane, starting to show signs of waning. There were new project starts and a new project pickups and new workload starts. That is encouraging. Then, you saw Technology Layoffs starting to wane. They slowed a lot over the last few quarters. Management teams talked about increased visibility and improvement of businesses for the quarter. I think overall, and on top of that, we have ai, that should be a big driver. Caroline how much is a worry from your perspective . Hilary it is a worry only insofar as the geopolitical backdrop creates shocks to the economy that can delay recovery. But i do not view this as a direct concern. For, particularly, cloud and sass names. I think corporate enterprise and corporate customers are on the globe and have imperatives to pursue. They have delayed those for essentially nine months plus. I think they are ready to get underway with them, more or less unless we have a massive shock to the economy. Caroline it is interesting you are seeing green shoots. Some might say apple is a little underwhelming and microsoft too. From your perspective, how are these companies proving themselves . Is it just that we as investors or analysts, when we have all of the by ratings out and that shares have risen so far there is just too much price to perfection so far as abigail has outlined . Hilary you are outlining it well. I think what happened as we had a really strong first half for the group that was compelling from a priceperformance perspective. Investors got very enthused about ai. Particularly with respect to microsoft results i viewed the reaction has more of a mismatch, a tiny mismatch, more than anything. Microsoft quarter was in line. Their commentary on ai was a little underwhelming, more tepid than investors expected but they proceeded to expend they had not actually introduced the majority of ai enabled applications that investors were excited about and customers were getting excited about. Some of the key Semiconductor Chips needed to train and run the Large Language Models were not available yet, only a small swath became available very recently. So, i viewed the results as not a demand indicator. I think demand continues to build and the companies are doing extraordinarily well. They have a plan to deliver over the course of the year. It was just a tiny mismatch. Caroline talking about the fact that in this environment, looking at the nasdaq 100, three straight weeks of losses on that benchmark. Where do you make additions . You said you might be buying in this step market. Hilary from a valuation perspective with enterprise overall we have 10 on the prepandemic side 10 year averages early in the year when i was here in february we gained a few multiple turns. Since that point we have been giving up some multiple turns. I of overtime i expect ai to contribute meaningfully to results and drive both growth and valuation overtime. I would be looking to come again, the 10 year, the arbiter of everything. It feels like it wants good wants to go towards 5 . Im not an economist. If it does that there is for sure more pain to come in tech. But i would be adding incrementally because its anyones guess. Caroline would you look at cyber names . We will be digging into palo alto after the bell today. Hilary i like cyber. I think cyber fundamentals are generally resilient. We have seen weakness in firewalls and the firewall arena to date and i think that is smelly a function of having been supply constrained for so many years and there was a lot of customer ordering, lets call it that. I think we are normalizing after that. I do tend to favor some of the next generation cyber names, such as cloud stryker, or easy scaler. Tied to zero trust initiatives. There are government mandates behind that. Part of the Inflation Reduction Act has been behind that. At the end of the day palo alto itself is a leader in technology. I think for todays announcement, very conveniently on friday, late august, within a two hours covers call. I think its time to get their threeyear plan. I have noted when they do that they tend to be conservative at the outset of the plan. It looks like they want to announce some amount of change, may be shifting towards annual billions from multiyear upfront billions that would hurt free cash flow. They may want to pursue certain areas such as zero trust more actively. It is hard to tell. Some of this is anticipated by investors. It is hard to tell the magnitude of exactly what they will announce. Caroline, who the stock is to caroline the stock is down significantly since they announced. Hilary fresh from clear bridge. Lets dig in on Palo Alto Networks. August 2 was when we really started to see the stock selloff. They said they would be reporting results on a friday. Today. After the bell. Highly unusual. Usually it gives us numbers on a monday or tuesday. It is giving investors cause for concern. Bloombergs brian klaas telik are is with us. He is looking at what pr disaster this could be if indeed they are trying to bury some sort of bad news. Everybody is braced for it. The stock as of about 20 off about 20 since i announced the date. Brian this is extremely unusual. It is the first friday afternoon report we have seen sense late 2023 think about all the Quarterly Earnings we have had since then. It is unusual, atypical. I spoke with the company. A spokesperson told me that between everything they have going on they are doing results, have an outlook. They were giving threeyear meeting targets. They are announcing a strategy review. They have a sales networking meeting next week. So they have a lot going on. The company told me they want to give investors and analysts time to digest all the news coming out. That sounds like it will be a lot but its very atypical as far as the timing goes. Caroline what also adds concern is for that, another Cyber Company that sarlacc big gains than many anticipated. What are the headwinds facing some of these companies at the moment . Ryan palo alto comes out and says it will be friday and a stock falls. A couple hours later fortnet cuts of their outlook. Savitz garrity has always been an area that people feel insecure and durable as far as there will always be demand for improving cyber against hacks or threats free the fact people are seen weakness in this very defensive area of software is seen as another kind of headwind for the stock coming after the unusual date. Caroline what did we hear in particular in terms of the macroenvironment weighing on client desire to be upping their spend or thinking about curtailing or finetuning their cyber spend. Is that what we heard from some of the others in the space . Ryan absolutely. Signs of weaker spending. Maybe seeking longer for deals to close if the deals are not as big as maven may have expected before. All these issues are heightening concerns about the global macroeconomic background as it pertains to Security Software spending in particular. Caroline tilden great to get your take. I hope its not too long a day to be working after the bell. Ryan for stella got will be there with the other investors keenly awaiting the number to drop area coming up, drop. Coming up, we talk about the selloff not just in Palo Alto Networks but in digital tokens. Bitcoin hitting a tow month low two month low. We talk about a shakeup in the crypto markets. Meanwhile, lets look at we work for a moment. Its a penny stock. For that reason it needs to be spilling. They share is doing a one to 40 rigorous reverse stock split. Basically they need to ensure every individual share is worth more than one u. S. Dollar to remain within the benchmarks they want to be included in in the public markets. So the pressure on the stock is still 13 rated they will be proceeding with the one for 40 reverse stock split to regain compliance with their listings. This is bloomberg technology. Caroline unusual column in the crypto markets is over this week get a sudden incline set off. Maybe its concern of interest rates. Maybe potential big sales of certain types of the asset this route pushed bitcoin but am 26,000 for the first time in two months. The cofounder and ceo of a crypto fundraising platform focused on social impact, metaverse, a calming. Stephen, do you buy some of the rumors in the market perhaps this is sparked by one key big seller, spacex. There were reports coming from the wall street journal. Or is this just in markets . Stephen i think it is just Market Structure. I think the spacex telling selling probably already have an. We saw Bitcoin Trading at alltime low volatility while Market Makers work with an out of the ecosystem. We had a very illiquid market and open interest on futures is ramping up significant great the move was expected. There had to be a flush out. We did not know if it would be to the upside over the downside, but as the dollar has been getting strong recently a little bit of a selloff in crypto meant loans where acquitted and we saw a sharp, quick move to the downside. Caroline is writing the 25,000 level as a line in the sand. Is there any catalyst to the upside . Many desire to get into bed going because there was a desire for a spot bitcoin etf, for example. Stephen there are a lot of catalysts to the upside. You had the spot. On a galaxy call they said its a matter of when not if. You have next year, typically, a bull run after the having. There could be a rally into it. We have an sec case against coinbase looking shaky after judge torres basically said tokens traded on secondary exchanges are investment contracts. Lastly, you have the fed tightening cycle topping out. I think that a lot of catalysts. Basically in slang the narrative for the future crypto will conduct on. Caroline i am interesting that you have talked before about the bitcoins body tfn what mindset about an on the call for galaxy. What about this talk about a niche etf or at least needs futures. How would that galvanize efforts towards alternative points . Steven i think its huge. That news happening within minutes or hours of the liquidation is interesting. The main thing for me with that etf means basically that cerium will not be a security. I think that ship has sailed and it will allow people to get more exposure to eth than they would have. I do not know how deep down the corn market cap we can go in terms of what will be considered a security or not. I think for sure etherium that ship has sailed and it will be regulated as a commodity by the cftc moving forward. Caroline these timings happened hours apart from each other. What you mean by that . Was there anyway you think that was catalyzing a selloff in bitcoin . Steven i do not think there was any specific timing or reason. I mean, im not sure. I dont want to be conspiratorial. I think the calls for liquidation was more Market Structure than anything. It may have been an interesting coincidence and see that the eth futures etf was approved within hours of liquidation. Caroline can you talk about who the marginal buyer is at the moment or where we are seeing people interested . If you say theres catalyst to the upset of bitcoin and other alternative points, who is buying into the market regionally speaking . Institutionally speaking . Steven we are seeing longterm holders taking over at a short term holders getting fleeced at the moment. I think that the marginal buyer, one big catalyst for me will be coinbase and airbase chain. I think they are really disrupting themselves with that and they will do a lot to bring retail and other assets on chain. I think we saw in the demise of the last crypto bull run blowups of centralized entities. I think coinbase israel is really laying the groundwork for retail to put their assets in decentralized entities, d5, efts, decentralized apps. There the shift in a rotation from where the marginal buyer calms and where they park their assets. Caroline the gives impact ceo and cofounder. A return to volatility when it comes to crypto. It has been a volatile week friday and. Adyen. It raised about 20 billion in market value yesterday. In an interview with Bloomberg Television the cohead says on back of the weekend there will not be sure buybacks. Lesson. We are focused on building a business and we have always had a policy where we continue to invest our funds in the business. That is what we continue to do. It is clear we lost some trust yesterday. And, yes, i think the best approach to this is now actually listening to investors and seeing how we can get back some of that. Caroline the abigail ceo talking to the market opposed to their. Coming up, arm preparing for the biggest ipo of the year with no less than 28 banks. We will bring you the details next. This is bloomberg technology. Somebody would ask her something and she would just walk right past them. She didnt know they were talking to her. I just could not hear. I was hesitant to get the hearing aids because of my short hair. But nobody even sees them. Our nearly invisible hearing aids are just one reason weve been the brand leader for over 75 years. When i finally could hear for the first time, i started crying. I could hear everything. Call 1800miracle and schedule your free hearing evaluation today. Caroline its time to talk technology. American trade groups comprise the biggest players in technology and manufacturing and asked the u. S. Government to reconsider a technology. The coalition includes some of americas largest businesses including apple ident health. Intel. The largest maker indicates that the. Applied materials sees a shift towards Artificial Intelligence and in the rise in enternet connected devices. Softbank backed arm filed a roster of underwriters for its initial Public Offering. 28 banks for the deal. The company is aiming to be valued in a listing we understand to be 60 billion dollar70 billion dollar valuation. Leanna baker is the person that has so much about this potential nesting at bloomberg. Tell us why 28 banks are needed and all their various tiers of importance. Leanna it sounds like too many banks, but remember metawas facebook when they went public many years ago and when they went public they had about 35 underwriters. So when you have a large amount of shares you need to get to market and help staff to have different banks to syndicate out the shares to clients. Arm could raise several billion dollars. It is best to be in the top ideas of technology of all time. They will need all the banks to get to work. This could also be a Relationship Building exercise for arm. They want to keep good relationships with all the banks. Thats why you will see the whos who of wall street on this one. Caroline and international because they want and International Investor base. I am interesting as to how they will be eyeing the current market volatility and whether that really matters when theyre trying to get a hefty valuation. Liana there has certainly been a debt ipo market and there are hopes this will open things up. We reported yesterday instacart is looking to go public in september. It feels like arms warming things up for everyone. Instacart will not be as big of an ipo as arm and it does not happen once patients. There are still others to look forward to. It has been a dreary year for ipos and bankers working on these transactions. Caroline 14 billion ipos this year compared to light 240 in 2021. Liana baker, we thank you and wait with bated breath on arm.