Record high amid massive inflows into Exchange Traded funds. The state of Digital Currencies amid that rally. Caroline apple facing weak demand for the iphone in china. The recently slashed the price of the latest model. We will discuss that and more. First, lets check on markets. The macro field to the day the pce deflator what is the Inflationary Pressure the Federal Reserve is looking at . Came in, in line with expectations. Write for the Federal Reserve therefore to be pausing on rate cuts. A relief to the market. We see 10 year yields come down from four basis points, down across the curve. Im looking at a volatility and a fear gauge that strengths shrinks less than a point. Look at what you are just outlining. Where the action has been is the technology, bitcoin, up 4 , 63,000 the previous record in november 2021. Where are you looking in the micro . Ed a lot in the earnings. Snowflake is the big mover, down 18 , but on track for its biggest drop on record. Two pieces of news. The ceo is stepping down. He will be replaced. The Sales Outlook for the current period, even at the high end of the range, is 20 million below what the street was expecting in terms of consensus. The story for snowflake was sharp deceleration in growth in 2023. The upward trajectory, there is a lot more happening in the earnings contest. Different companies we will get to throughout the show. The first is paramount, up 4. 8 . They called it the ad slump is over. We are rebounding. Hp is down 1 . It traded a bit choppy this morning. Look specifically at sales of pcs to consumers. The street expected them to return to growth, but sales fell 1 in that category. They are saying 2024 will be better for the customer. Salesforce is up one point 5 . Its outlook for the year suggests annual growth of fiscal 25, 10. 8 . I want to go very specific with the numbers. The reason that is important is that they grew just above 11 last year. In other words, we expect decelerating growth. Thats not what the street here, but we got the first dividend the buyback. Stocks up 1. 5 . Caroline lets dig in with an expert across all of those numbers. You bring us the takeaways. A closer look at some of these results brody, there does seem to be this worry about the forecast. Brody everybody wants smart growth. There is no cushion. Snowflake in particular, they are always interesting. Unlike the Software Companies that charge you five or 10 year contracts, so you can predicted pretty well, the charge you based on how much you use the product, kind of like an ws or azure, which means it is a little volatile. We are not sure what we are going to get. This forecast, it made people feel anxious because it showed growth continue to decelerate. You lose one of the most famous ceos in the industry, thats going to be a shakeup. Ed lets talk about salesforce. I just go so nerdy on the details. I use mo d. L. On the bloomberg terminal. My understanding is where do we find the ai readthrough . They outperformed in the quarter going into fiscal 2024, with like 11. 2 growth, and they are guiding us to 10. 8 growth this year. What is or is not happening for salesforce right now . Brody it is funny because they are guiding that above 10 number when it comes to the nonconsultant revenue. When it comes to topline, their forecast is below that psychological 10 mark. All of a sudden, you become a value stock rather than a growth stock. Salesforce, the story they are telling is that ai is going to buffet the need for a lot of their solutions. The early stage i will be in their Data Products data cloud, warehousing, analytics. That did outperform. They are seek uptick. They are saying it is the highest Dynamic Growth of any product they have had. Still, i think the ai impact on these numbers is relatively low. I think that is the case for a lot of these Application Software makers. They want to tell an ai story, in reality, it is still early days. It is hard to quantify the impact at this point, even if in the Earnings Call you are going to hear those letters over and over again. Caroline brody ford, we thank you for bringing us the inside track on snowflake and salesforce. Lets dig in with both those companies and the broader ecosystem right now. The ceo and principal of a Technology Firm providing Research Advisory services to leaders with a focus on the value of Technology Tell us about the Value Proposition of salesforce. Im your perspective, are they offering the right offerings at the right price point, with the right focus on margin . Rebecca thanks for having me today. Salesforce got the timing right with data cloud. Just as everyone recognizes that data and metadata is what makes ai work, they have got to get that in protection. Theyre doing a lot, offering credits to customers to start to adopt data cloud, so they can experience the benefits of ai. Salesforce has runway in other areas as well. What we have seen in the past year is they have pushed to improve efficiency and improve margins with offerings like the aid of u. S. Marketplace and other selfservice things that help them keep their cost of sales under control as well. Caroline its interesting when i hear marketing coming my way from salesforce. It is always about the safety, using your own proprietary data. Sticking with salesforce, what is your view on whether the incumbent wins in this space . They have sony deals in these corporate that they are going to win out on the ai offerings, or whether challenges that are vc backed could make some inroads . Rebecca it is interesting you ask that because we just did a study asking people about who they would trust with their ai. What they found was that it was not necessarily those established vendors. Buyers were more likely to trust ai solutions that came back to organizations that had traceable data and clear ethics and privacy policies not necessarily an established vendor. There is still a lot of room for innovators out there. Ed this is how i think about ai and salesforce. Ai means they can charge more. They are more expensive premium products. It adds value to what they already do. That did not show up in their numbers. Do you agree with that . Rebecca i would agree, but we are seeing that the penetration strategy customers need to make that leap. They get data cloud credits. Theyre going to work on building that up, and it salesforce faction and then be able to turn on the switch. Ed we know all about true salesforce fashion. Here is the reality. There is a company that grew in the mid20 range every year for a decade, and it is going the wrong way. Snowflake had a sharp deceleration in growth last year. It is not giving us evidence that it is turning around. What is your conclusion on the corporate Enterprise Spending environment based on the results those companies gave . Rebecca i think snowflake made it clear when they said this is recovery, not revamped. We are correcting on the software space. I do think salesforce has runway with other products like slack. There is still a big revenue opportunity they have not tapped. Ed we have a change of leadership at snowflake. Does that excite you . Rebecca no one likes a surprise change in ceos. Frank was brought in at a certain point, just like with service now. We have a different person as we look at snowflake moving from Cloud Storage to more of an ai company. Certainly, schroeder is a good person in that spot. Ed great to have you on the program. A really wide range of analysis. We are to switch to bitcoin, the risk asset of choice in crypto markets. We discuss all of that and more with framework ventures vance spencer. There are other stocks on the mood the move. Caroline after the bell, we look at what dell has to report. Hewlettpackard, we got the focus on hpe. We have already had hp up 8 . I understand the ceo will be joining the network tomorrow. Another darling in the ai space up 220 . So far this year. Up another 7 . Can this Company Deliver the exuberance we see factored into the share price . From new york and San Francisco, this is bloomberg technology. Get help reaching your goals with j. P. Morgan wealth plan, a digital money coach in the chase mobile® app. Use it to set and track your goals, big and small. And see how changes you make today. Could help put them within reach. From your first big move to retiring poolside and the other goals along the way. Wealth plan can help get you there. J. P. Morgan Wealth Management. Is there going to be anything left. Left over . Yeah. Oh, absolutely. inner monologue my kids dont know what they want. You know who knows what she wants . Me i want a massage, in amalfi, from someone named giancarlo. And i didnt live in that shoebox for years. Not just with empower, we get all of our financial questions answered. So you dont have to worry. I guess ill get the caviar. Just kidding. Join 18 million americans and take control of your financial future with a real time dashboard and real live conversations. Empower. Whats next. Caroline lets check on other risk assets today, because they are higher, decidedly so. We are on a tear when it comes to crypto. Could we be eyeing the 69,000 handle we have had at record numbers for bitcoin . Not just bitcoin getting the love. It is being spread through other areas. Ethereum is up 2. 3 on the day. Other layer one protocols are doing particularly well. Up more than 11 on the day. There is more alarmed broadly in the crypto sphere. Look at what is happening in the equity side of the equation. As some of these underlying assets do well, if you are holding or mining, they are doing well for you as well. We know microstrategy are up 3. 3 . On the downside, marathon. Any worry about Accounting Practices and whether they are showing uplift to overall earnings because they are able to show the current increase and value of the Underlying Holdings of bitcoin. It is up 15 . Some analysts felt the numbers did not hit their mark. Member, the stocks have not runup in recent months. Totally in sympathy with the other minor, marathon. At the moment, there is a supply demand dynamic that seems to be working in bitcoins favor. Ed we have vance spencer, cofounder of the web three focused venture firm framework ventures, 1. 4 billion dollars in assets under management. Caroline set this out really nicely. We have moved beyond bitcoin to a broader positivity in Digital Assets, and the supply demand equation. Give me a health check of how you feel general sentiment is toward cryptocurrency. Vance extreme a positive, to say the least. They are on pace to buy about a million bitcoin per year. I have it up on my screen. There is about one point 9 million bitcoin total on all of the exchanges worldwide. This is what is different in this cycle versus the previous cycles. We did not have larry fink find 85,000 bitcoin in the last 20 trading days. These etfs are a watershed moment, 11 years in the making. That is when the first application was found filed. There is a may 29 approval or denial days. The last thing i will say is there is a ton of work that has happened since the big crash in 2022. We have defied defi starting to produce earnings, gaming bringing in people. The ecosystem is extremely coherent. It is hard to fade all of the work that has happened. Ed you take the movement in bitcoin, but we have been talking about the offshoots to other asset classes. You look at the data of nft volume in december. The reason i am glad to have you on the show is a lot seems to be related to gaming, and area your firm is focused on. Vance gaming is probably the most positive story in crypto right now, but all the games that were funded in that 2021 2022 run have just started to launch. Pixels is the biggest application by far in terms of user account. We are moving beyond this process, whale driven crypto economy, to something more massmarket. People have been waiting for that adoption moment. I think it might be here. You have these narratives really firing the etfs, defi, eff what is the beer case . Maybe the inflows start stop. But the numbers that we hear are 1 to 3 . That is what fidelity says, of the portfolio you should have in crypto. That is about 150 billion coming into the space over the next couple of years. We are one of the largest Asset Managers in crypto, framework. We have bought nine figures in crypto over the past two years. This might sound strange, but it is actually hard to get the coins. These markets are not as liquid as people think. What happens when that money comes in . It could get wilder than people think, is my guess. Ed i remember reading about you guys in 2022. Hannah miller was writing about how you were raising money at a time when everyone was raising money. That was happening. It did not happen in 2023. Where are you focused now in the deployable to plummet capital and your appetite to raise more funds . Vance i dont know how much i can say about our raising plans. Ed is just you and i on the show. Just give us the details, vance. Vance we raised 200 million two weeks before luna collapsed. You can imagine what that was like. We spent that year buying. Really, nobody wanted to talk to us. But 3500 people have now turned around. All the lps are excited and there is more interest in the space. Let me put it in perspective for you. I was at a pension Fund Conference this week, a multistrategy pension Fund Conference. The crypto people got one panel at 8 30 in the morning. There is a ton of interest, that the Pension Funds and largest endowments are still behind on this stuff. I think in the fullness of time when you look back and think about what it might mean to miss the birth of an asset class, particularly into an etf style paradigm, a lot of those people are going to be upset and worried about what happened. I think we are early. Ed really appreciate having you on the show and im glad there were some things you could say. Caroline, what have you got . Caroline coming up, we go back to publicly traded companies. Paramount reporting streaming revenue that beat expectations. We are going to break down what the overall revenues and ad market are looking for in the company. Ultimately, it is still not looking that pretty. Personalized Financial Advice from ameriprise can do more than help you reach your goals. You can make this work. We can make this work. It can help you reach them with confidence. No wonder more than 9 out of 10 of our clients are likely to recommend us. Ameriprise financial. Advice worth talking about. Ed time for talking tech. Electronic arts said yesterday that it would be cutting 5 of its workforce, about six and 70 people, due to shifting customer needs and a refocusing of the company. They will also be Halting Development on undisclosed titles and pulling back on real estate holdings. The ceo told staff and a member in a memo that the company would be moving away from development of future licensed ip that we do not believe will be successful in our changing industry. Ea joins sony, tencent, right games, and other top studios in laying off employees as Game Development costs increase. And binance, the world are just crypto exchange, said it recovered 4. 4 billion worth of Digital Assets for users who mishandled their deposits within the past two years. Users can mishandle their funds in a variety of ways, including entering incorrect while it addresses, and problems from blockchain upgrades, according to thursdays report. The Cryptocurrency Exchange said it resolved more than 381,000 cases of cryptocurrency that was deposited by users but not credited in 2022 and 2023. Plus, alibaba is rolling out its second major price cut for Cloud Services in years. They are going to win back users from rivals like tencent, competing to provide tools critical to training ai. They will cut prices on scores of internetbased services by 20 on average. The cuts were present one of the more aggressive moves by the company to stay ahead of tencent and baidu in the Cloud Business and risk triggering a price war and what is already a hotly contested area sector in china. Caroline talking about contested sectors, lets talk about streaming and focus on paramount. You see a bit of a reprieve, up 3. 3 , after revenue for its direct to consumer streaming business, paramount plus, wheat expectations. Our Bloomberg Intelligence analyst joins us for more on the results. There was optimism showing, but ultimately the revenues, the ad side, still cloudy. You are right in terms of the dtc business, the streaming business. There were green shoots. Overall, what we came up with were tones of stabilization in paramount results. Im just not sure it is going to be enough. You do have the linear tv business which brings in about 55 of the revenue for the Company Almost 90 of its profits. There is of is the a lot of focus there, and that sector has been so challenged with cord cutting and the whole movement to streaming and the movement of eyeballs from linear tv networks to the digital platforms. The advertising dollars are moving away. That market has been under stress. Tv ads were down 10 . Paramount will get the benefit in the First Quarter with the super bowl. There will be lingering benefits throughout the year with the political ad cycle. At that is not going to be enough. The court advertising trends remain very, very challenged. That remains a pain point. But i think the bright spot is the streaming metrics look good. Ed there is a lot going on in the background with paramount. For me, it always comes back to the loss in the streaming business was more narrow than expected, but we dont have any better sense on how paramount does anything, organically or ene