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 f