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- [00:00]
Superhuman Go Narrator
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- [00:30]
Amazon Health AI Narrator
you're running a business, the best days are the ones where priorities stay on track. For midsize and large companies, that isn't always easy. Risk can touch multiple parts of an organization at the same time, often in ways that aren't immediately obvious. It might involve property liability or cyber. It could stem from regulatory requirements or challenges tied to a specific industry or the scale of an operation. At that level, managing risk becomes an ongoing discipline, not a one time decision. the Hartford, the focus is on helping businesses manage risk before it turns into something more disruptive. That means working with companies to identify where they're exposed, decide what matters most, and put practical standards in place so risk is managed as part of day to day operations. And when losses do happen, the Hartford can pair that risk control work with insurance coverage grounded in underwriting, risk engineering and claims experience developed over time. Learn more@theheartford.com riskmitigation Amazon Health AI presents
- [01:30]
Bloomberg Tech Host (possibly Emily Chang)
painful thoughts I I can't stop scratching my downtown. Mm, yeah, but I'm not itching to go downtown and tell a receptionist I'm here to talk about my downtown. Some things you'd rather type than say out loud.
- [01:48]
Amazon Health AI Narrator
There's no question too embarrassing for Amazon Health AI. Chat your symptoms and get virtual care 24. 7 Healthcare just got less painful.
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Bloomberg Tech Reporter
Bloomberg audio studios podcasts radio news.
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Commercial/Advertisement Voice
Bloomberg Tech is live from the heart of Silicon Valley with Ed Ludlow in San Francisco.
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Bloomberg Tech Host (possibly Emily Chang)
This is Bloomberg Tech. Coming up, Space X's first earnings reveal, massive spending and ambitious Starlink expansion. And Elon Musk latest bold prediction $100 billion annual revenue run rate by year end. Plus we speak with Uber CEO Dara Khosrow Shahi and joins us to discuss the company's earnings and its Robotaxi ambitions. And more Robotaxi talk as we're joined by the CEO of Zoox later this hour on a big commercial milestone for the company. Space X is first ever quarterly earnings, so the stock is down. This is what it looks like on track for its biggest drop since June 22. Okay, it only started trading June 12, but it is much further below its IPO price of $135 a share. There's a lot of stories and a lot of numbers that we need to go through. But Today's big number, $1 trillion. That's how much Elon Musk expects Space X revenue to hit in 2030. Everything you need to know. Bloomberg's Lauren Grosch, covering all things space, joins us now. So let's go over the quarter that was the numbers that we need to hear about what the stories were in Space X. His first ever earnings and earnings call.
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Bloomberg SpaceX Analyst
Right. So, you know, I think it paints a pretty similar picture to the one that we saw emerge ahead of the ipo. Obviously revenue is up, but you know, it's still a cash burning business. The three of the three segments, the one that's really the one bringing in the numbers at the moment is the connectivity segment, that Starlink segment, the space segment, what they've built their business on, rocket launches, you know, that's, that is making some gains in terms of revenue, but still kind of holding relatively steady. And then of course the newly acquired AI segment, that is really the big source of the cash burn for the company. And as Space X CFO Brett Johnson mentioned, we're we can expect to see capital expenditure on par with what we saw this quarter for the next two quarters.
- [04:16]
Bloomberg Tech Host (possibly Emily Chang)
There was a lot of discussion of Starship as well. Starship, of course, is central to the future ambitions the company has, but what do we really learn about it? What is it that Elon Musk and the other execs said?
- [04:27]
Bloomberg SpaceX Analyst
Yeah, I feel like the more surprising tidbits really did come during that earnings call. And a lot of very big, bold claims were made about some of the things we might see in the future. For instance, Starship, as you mentioned, you know, he said that Starship would be launching once a day by this time next year. Also, the heat shield for Starship is essentially solved, which is interesting given that there is some skepticism whether the heat shield design actually would hold up and make it a fully reusable and rapidly reusable rocket. Just a reminder, Starship has launched twice this year on test flights. So to reach a launch a day by next year, you know, that's an exponential increase. So, you know, a lot of big claims, we'll see how they hold up. But you know, that's what Elon is known for. I think anyone investing in his company knows that he likes to push the limit and set really big expectations in order to challenge people to meet them.
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Bloomberg Tech Host (possibly Emily Chang)
What were the Other bits that you, you kind of would pick out having had a night to sleep on it. You put the business of space news that are out this morning, you know, with a bit of time to think, what do we need to know?
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Bloomberg SpaceX Analyst
Sure. You know, there was another moment as well that Starlink would be the majority of the world's Internet in the next few years. Again, I'm not sure about that one. I did take notice of Gwynne Shotwell, the president of Space X, talking about Starlink Mobile and how they actually think that they're going to be able to acquire a lot of the customers that, you know, the major telecom services servicers like Verizon, AT&T and T Mobile have, you know, that definitely, definitely spoke to their ambitions for expanding that service. I think there's a lot of speculation of, you know, whether they'll have to bring in ground based components, terrestrial components, something that she did mention. I don't think it's out of the realm of possibility but I think it's going to take a lot of investment on their end in order to make that happen. And of course, you know, as we've seen, they're not adverse to, to putting in a lot of capex.
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Bloomberg Tech Host (possibly Emily Chang)
We're going to go deeper on Space X Mobile later in the hour. Thank you very much Bloomberg's Lauren Grush. Let's stay with Space X Edison, you, Deutsche bank head of global space and aerial mobility joins us now. He maintains a buy rating on the stock but cut the price target from $255 to $235. And I want to get to you, with you to the bit that we probably haven't covered which is in the short term it is the business of cloud services leasing, renting compute capacity to third parties, Google, Anthropic that seems to have the most momentum right now.
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Edison, Deutsche Bank Head of Global Space and Aerial Mobility
Yeah, yeah. And you probably notice they, they announced another deal, right. Another customer undisclosed in the beginning of 3Q. So, so the cloud business, by our estimates, right, it probably can end December probably running at a 40 plus billion dollar run rate which is obviously much higher than now and generating the bulk of revenue. So we actually feel very good about that trajectory going into year end.
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Bloomberg Tech Host (possibly Emily Chang)
Let's get to what you just mentioned which is there was a disclosure of the cloud business in the current period. Let's listen to CFO Brett Johnson. In the first few weeks of the third quarter we've already contracted an additional $6.7 billion of cloud services revenue over a six month period that begins ramping starting in October of This year we believe this puts us on a trajectory including contribution from cursor to reach 100 billion of ARR or annualized revenue run rate by the end of this year. So this is Space X, right? There are three business segments, Space AI connectivity. But you know, Brett was pushed, wasn't he, on what the biggest contributor to the 100 billion was. And he I think in the end said yeah, this is US leasing compute capacity.
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Edison, Deutsche Bank Head of Global Space and Aerial Mobility
Yeah, so, so I mean we can do some, some rough math around that, right? Just as I just mentioned, right, we can probably easily, pretty easily get to, to the 40. You have other parts of AI, right? You have Grok X, you have the advertising businesses as well. I think you put these pieces together, you get probably, I don't know what five you add on Cursor, which depending on, you know, I think maybe Bloomberg has even reported on this, right, is running at a very, very fast growth rate. So you put that all together, we think you could probably get to something like 60 billion run rates not too far from, from December, if not in December. So if you're already at 60 you need the rest of businesses to, to do by definition, right, something like 35 to 40. And we think that's, that's achievable. And so we believe in that, in that 100 billion. And you know, obviously time will tell but, but we feel pretty good.
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Bloomberg Tech Host (possibly Emily Chang)
Edison, a lot of the research that I've been reading from you of late has been on the orbital data center side and, and a big piece of technology news was that Space X has decided to go exclusively within video and vera Rubin architecture. That, that did seem important. You know, what did you make of that? And the statement that next year they will start launching that orbital data design.
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Edison, Deutsche Bank Head of Global Space and Aerial Mobility
Yeah, so I think there's, there's, there's kind of two angles here, right? There's the more near term we just mentioned which is we need to deploy some prototypes and, and deploying the prototypes I would say it's not, it's just, it's just the beginning. We need to get them up there. We need works. The real question is how do we scale this up? And to do that we really need to increase the volume, reduce the cost of solar, of also of the radiator. So I actually don't, I don't worry too much about next year. Can we deploy some prototypes? I think the much more difficult part ultimately is, is the cost and scale of doing this at a gigawatt level. And that's what really will be the true test rather than Kind of just getting like a couple up there.
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Bloomberg Tech Host (possibly Emily Chang)
Elon Musk said that he's pulled forward his expectation Space X hits $1 trillion of revenue to 2030 from 2031 and that there is a non zero chance that that happens 2029. Are you able to model for that?
- [11:03]
Edison, Deutsche Bank Head of Global Space and Aerial Mobility
I would frame it like this. So we, we have a forecast out there, right? That's, that's you can see on Bloomberg is, is much lower than that. And I think the way to frame it in the context of stock is to get a much higher stock value. You do not need to hit 1 trillion by 2030. If by some chance you do, the stock is worth significantly more than what it is right now and certainly even versus our price target, we're probably modeling call it more like a third of that. And we think that more than justifies what the stock is right now.
- [11:38]
Bloomberg Tech Host (possibly Emily Chang)
I mean at the end of the day, Elon Musk said it $1 trillion in 2030. I'm looking at consensus on the Bloomberg FA go $351 billion for the full year 2030. Should we talk about Starship to end? You know, all of the future is predicated on starship working and its rapid reusability. How did you digest the updates? I guess from the call,
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Bloomberg Tech Analyst (In King)
I think
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Edison, Deutsche Bank Head of Global Space and Aerial Mobility
it's basically on track with our expectations, which you know, we're expecting. It probably flies, call it 15, 20 times next year. And if you kind of triangulate, you know they're talking about maybe deploying a thousand B3 satellites. You look at 50, 60 satellites for launch. Right. You probably get into that realm. So we think there's certainly, you know, you need to catch the second stage. You need to address some of the heat shield concerns. But in terms of the operational cadence of Starship, it is tracking roughly what we're modeling for for next year. And you know, we will see on Flight 14 which is fairly soon, you know how that goes.
- [12:48]
Bloomberg Tech Host (possibly Emily Chang)
Edison, you have Deutsche Bank. Great to have you back on the show. Really appreciate it that SpaceX. There are so many other technology earnings. Let's go through AMD third quarter sales outlook $13.3 billion plus or minus 300 million. Disappointing. The stock down 7%. Paramount Skydance profits surging. But questions and concerns about the Warner Brothers Discovery deal. We're going to get to that halfway through the program. Disney higher as streaming and Parks both drove profit in the third quarter gone. And then there's Uber. Right now the stock seems to be trading on the outlook for gross bookings. But there was a really big discussion about Uber's plans for its robotaxi business going forward, and that is where we will focus. Coming up, Uber CEO Dara Khash Rasahi joins us to discuss the company's earnings, but also its robotaxi ambitions. That's next. This is Bloomberg Tech.
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Superhuman Go Narrator
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IBM AI Narrator
the thing about AI for business? It may not automatically fit the way your business works. At IBM, we've seen this firsthand. But by embedding AI across hr, IT and procurement processes, we've reduced cost by millions, slashed repetitive tasks, and freed thousands of hours for strategic work. Now we're helping companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business.
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Amazon Health AI Narrator
IBM Amazon Health AI presents painful thoughts
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Bloomberg Tech Host (possibly Emily Chang)
I can't stop scratching my downtown. Yeah, but I'm not itching to go downtown and tell a receptionist I'm here
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Amazon Health AI Narrator
to talk about my downtown.
- [15:29]
Bloomberg Tech Host (possibly Emily Chang)
Some things you'd rather type than say out loud.
- [15:33]
Amazon Health AI Narrator
There's no question too embarrassing for Amazon Health AI. Chat your symptoms and get virtual care 24. 7 Healthcare just got less painful.
- [15:46]
Bloomberg Tech Host (possibly Emily Chang)
Let's take another look at shares of Uber, down about 6%. I think that's on track for its biggest drop since November. The company said gross bookings for the current quarter are expected to be between $58.25 billion and $60.25 billion, but that figure includes rides and delivery bookings, as well as driver and merchant earnings. Uber said it faces some international Headwinds, particularly in Brazil. And the next focus, Robotaxi CEO Dara Khosrow Shahi's back with us here on Bloomberg Tech. You know, the gross bookings outlook, like there's a number of stories within it. I'd also note like at the same time rider activity seems to be increasing. You know, help us understand those two data points.
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Dara Khosrowshahi, Uber CEO
Yeah, the gross bookings results that we had up 22% in the quarter were actually very healthy and represented quarter on quarter acceleration. Mobility business was stable at 20%. The delivery business actually accelerated quarter on quarter as well. So the business continues to grow at pretty extraordinary rates. At the scale we're doing over 300 million trips per week. It drove really strong profitability as well. The pressure that we talked about was really in Brazil, which caused a trip slowdown for, for, for the quarter and that was actually about competition in the food delivery space. In Brazil actually we have a lot of mobility ridership that are two wheelers. We actually don't engage in the food delivery space, but there's a big war going on in food delivery and that took away some of our two wheeler drivers from mobility to delivery because they're getting paid a lot to, to engage in that war. It really has no effect on us whatsoever. So the guidance that we gave for forward gross bookings growth is very consistent with the guidance that we gave last quarter and hopefully we will meet and hopefully beat those kinds of expectations.
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Bloomberg Tech Host (possibly Emily Chang)
Is there anything to discuss on both, like the health but behavior of the consumer that you're seeing going into the second half of this year?
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Dara Khosrowshahi, Uber CEO
All signs point to a healthy consumer. We look at both our mobility and delivery business in terms of the growth of those businesses. They continue to be healthy. We look at like other indications, are consumers trading down and eating at more affordable restaurants or are eaters leaving less tips? Eaters or, or riders leaving less tips? We don't see any signs whatsoever of a consumer slowdown. So the consumer remains strong. And then on the labor front, actually our driver earnings, We've got over 10 million now earners around the world. That continues to be very healthy. And in the US for example, driver earnings are up 8% on a year, on year basis. So you know, people talk about the K shaped economy, but we think both sides of the K continue to be very healthy. And right now all signs point to the same going forward.
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Bloomberg Tech Host (possibly Emily Chang)
Let's take the driver out of it for a moment and talk about Robotaxis. You kind of explained the plan for the rest of the year, which is to get into more cities through different partnerships and different lanes, different methods. Let's start with that, you know, are you wanting to see the team accelerate a bit on that deployment? Dara?
- [19:17]
Dara Khosrowshahi, Uber CEO
Yeah, definitely. So we're in seven cities already with a number of partners. And just to review, we want to work with all of the ecosystem partners and just like we want every safe driver, human driver on our platform, we want every safe robot driver on our platform. And we're working with the entire ecosystem to accomplish that. We're in seven markets now. By the end of the year we will be in 15 markets and we're on track to be on 50 markets. And we see, you know, a lot of advancements as it relates to our partners. I know you're going to have Aisha from Zoox on, they got a great approval from the NHTSA to run their like, really, really innovative and cool robot vehicles as well. We got approval for Wave to start testing operations in London as well. In Video, who is a huge partner of ours, announced the release of their Alpha Mayo 2 model, which is a physical AI model as well. So the ecosystem around AV continues to move forward, is actually accelerating and we are helping that ecosystem accelerate through our partnership, through investment, through data collect for a number of these partners and then ultimately commercialization of these vehicles on the road in the cities in which we live.
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Bloomberg Tech Host (possibly Emily Chang)
Dara, On Zoox, and I'll ask, I should obviously, but, you know, now they can charge a fare, which is a first for a true robotaxi. No driver controls. When does that that manifest on the Uber app? When will Zoox be available on an Uber app in whichever city with a fare associated with it?
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Dara Khosrowshahi, Uber CEO
We think later this year actually in Las Vegas and then we'll expand from there. And Zeus's strategy is going to be to make their vehicles available on Uber as well as on the Zoox app as well. So we're very, very excited to work with that.
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Bloomberg Tech Host (possibly Emily Chang)
A lot of people want to understand what's happening in the relationship with Waymo. There was a change of plans in Phoenix, but how confident are you also about sort of renewing non exclusive contracts with Waymo? I think that your agreements with them, for example, in Austin, Atlanta, run through 2028 and then you got to work out how to go from there.
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Dara Khosrowshahi, Uber CEO
Yes. So the, the deployment in Phoenix was a really small deployment. It was less than 10 cars. So that's not material in any way, shape or form. We're going to continue to work with Waymo. It's been a strong partnership going forward into 28 as well. And you know, our philosophy has always been we don't want to be dependent on one partner one way or the other. Of course, we'd love to continue the relationship with Waymo, but then you've got partners like Zoox, A Wave, we ride, Avride, and then of course Nvidia as well, so that we're not dependent on any single player to keep driving and growing this ecosystem.
- [22:17]
Bloomberg Tech Host (possibly Emily Chang)
By the way, Dara, we're live on Bloomberg Television and on Bloomberg Radio. And this is Bloomberg Tech speaking to Uber's CEO. And you've just said that you don't want to rely on any one partner. Let me put it a different way. If we accept that Waymo is kind of the commercial robotaxi leader in the us, at least in terms of deployments, charging a fare of the rest of the field, which do you think is most competitive or going to be most competitive against Waymo?
- [22:42]
Dara Khosrowshahi, Uber CEO
I think, I think there are going to be multiple winners. I mean, this market is so early in its development and I compare it to like the foundation model, Space. You remember like three years ago or two years ago, you were like, open air is going to run away with it. They're going to, they're going to be the only game in town. Then it turned into anthropic and Claude is, you know, the best model that's going to conquer them all. Now you see, you know, X AI and Space X coming in with Grok and the combination with Cursor being a really great combination as well. You've got Google coming in with Gemini. They were late in the game, but they're definitely in the game in video, releasing open source and really supporting that ecosystem. So there is going to be no single winner here. Waymo is in the lead now, just like OpenAI was in the lead. But there are going to be many, many players as part of this ecosystem. And we will help the ecosystem overall commercialize because ultimately we've got the demand and we can bring more rides to those cars and monetize those vehicles in a way that no one else can.
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Bloomberg Tech Host (possibly Emily Chang)
So, Dar, really quick to drive early adoption. Is it important that the robotaxi firms price lower than other rideshare?
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Dara Khosrowshahi, Uber CEO
No, actually what we're seeing is pricing is, is super strong and demand is super strong as well. So when you get the product in market, it sells. It's taken a long time, right? Like 20% of search now is driven by AI. AV is less than 0.45% of overall trips at this point. So the adoption is going to take time. But the product is a terrific product and we look forward to making it available on the Uber app really all over the world.
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Bloomberg Tech Host (possibly Emily Chang)
Ubiso Dara Khosrow Shahi, thank you very much. And again, later in the hour, we're going to stick with Robotaxis and speak with Zoo CEO Aisha Evans to stick around for that coming up. Right now, safety is back in the spotlight after OpenAI and Anthropics models took quote, unsanctioned actions. But the details next. This is Bloomberg Tech. Ken Griffin, Citadel is cashing in on Wall Street's biggest hedge fund blow up. Citadel's flagship Wellington fund, excuse me, surged 5.9% in July after. You know what, I'm going to turn over to you hire for talking tech because I've lost my voice.
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Edison, Deutsche Bank Head of Global Space and Aerial Mobility
You hire.
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Bloomberg Tech Host (possibly Emily Chang)
I'm hoping you're there. Save me for a second.
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Bloomberg SpaceX Analyst
I will add.
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Commercial/Advertisement Voice
Well, let's get to talking tech right away. First up, Monolith Management, one of moonshot eyes early backers is looking to raise $500 million for a new fund. According to sources, last year Monolith raised $289 million for a fund and has since emerged as as one of China's most prolific venture backers. And OpenAI and Anthropic's AI models carried out unsanctioned actions during a safety test including hacking a website and trying to inject harmful code into software. That's according to the UK Government's AI Security Institute which says it's the first time it sees, quote, risks around autonomy and deception manifestation. This clearly in the real world. And I hope you got some water out there.
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Bloomberg Tech Host (possibly Emily Chang)
Yeah, let's try that again. Another stock that we're watching today, by the way is Shopify. Absolutely surging actually at one point in the session, up the most since 2015, continues to hit top line growth above 30% six consecutive quarters. And that's the direction of travel for this name. It's interesting. It's one that we cover less in the e commerce space, but it continues to have a lot of momentum and is growing super fast. It is an astonishingly busy earnings period. And with my voice back in full force, this is what's to come. More earnings. We're going to break down the prints from amd, Paramount and Disney. And this is how those stocks are trading right now in this Wednesday's session. Okay, everybody take a breath. It's half time here in San Francisco, the beautiful city of don't go far. We'll be right back. This is Bloomberg Tech.
- [26:56]
IBM AI Narrator
So There's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now a Global workforce of 300,000 can use AI to fill their HR questions, resolving 94% of common questions. Not noise Proof of how we can help companies get smarter by putting AI where it actually pays off. Deep in the work that moves the business. Let's create smarter business.
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Amazon Health AI Narrator
IBM Amazon Health AI presents Painful Thoughts
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Commercial/Advertisement Voice
why did I search the Internet for answers to my cold sore problem? Now I'm stuck down a rabbit hole filled with images of alarmingly graphic source in various stages of ooze. I can clear my search history, but
- [27:46]
Bloomberg Tech Reporter
I can never unsee that.
- [27:49]
Amazon Health AI Narrator
Don't go down the rabbit hole. Amazon Health AI gets you the right care fast. Healthcare just got less painful.
- [27:56]
Commercial/Advertisement Voice
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- [28:33]
Bloomberg Tech Host (possibly Emily Chang)
Welcome back to Bloomberg Tech. This is what technology markets look like this morning. Space X is the big earnings story. The Nasdaq 100 modestly lower, basically flat. You know, with Space X there's been limited ripple effect, the downward pressure on the carriers. We'll talk about that later in the program. A little bit of upside in Nvidia after the Elon Musk name check. Then there's the earnings stories that continue. AMD reported better than expected second quarter earnings yesterday, but that wasn't enough for investors who expected more given rising demand. Demand in the sector sending the stock lower and a big focus on the outlook of sales in third quarter. $13.3 billion plus or minus 300 million. Why aren't they doing better? Bloomberg's in. King joins us to try and explain. I mean a lot of the call focused on what do you mean, Lisa Su, CEO of amd, that the business for Datacenter will more than double. It seemed like the street really wanted specific size and scope.
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Bloomberg Tech Analyst (In King)
Absolutely. I mean if you look at the forward estimates, AMD is doing very well. Everybody thinks they're going to do very well, but everybody kind of knows that. So when she said, oh, we expect datacenter business to more than double, what do you mean by more than? Do you mean 60% more than? Do you mean 2% more than? So that was a lot of what was going on on the.
- [29:46]
Bloomberg Tech Host (possibly Emily Chang)
It's still framed in the context of like, well, what is Nvidia doing in terms of growth and is and closing the gap? But there was also a technology story which is the AMD has a new generation of server Design, Helios with Mi 450, its latest generation accelerator that's not showing up yet.
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Bloomberg Tech Analyst (In King)
Yeah, there's a lot of focus on this accelerator. And you know, AMD has been out there and said, look, this is, this is a product that's actually better than what Nvidia has and has coming. So the expectations are obviously rising for that. So now it's a case of, okay, we believe you, but when's it going to be there? When is it going to really kick in? And the same with the server design could be because again, Nvidia said, look, we can do everything for you. We can put it all at one server. It's easy. You just get it off the loading dock, plug it in and away you go. This is AMD's attempt to head that off at the pass and we want to see that.
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Bloomberg Tech Host (possibly Emily Chang)
What's the CPU story?
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Bloomberg Tech Analyst (In King)
CPU story is there is so much demand for CPUs right now. It's, it's what, what is old is new again, right? The data centers are now full of CPUs. We saw, you saw huge run up in Intel CPU business. Obviously the expectation was that that would happen for AMD as well. It did. They're taking share. But again, people want more. People put a lot of money to work in this stock.
- [30:56]
Bloomberg Tech Host (possibly Emily Chang)
Bloomberg's in king on all things chips. Thank you very much. Paramount posted a surprise surge in second quarter profits, proving its cost cutting Skydance merger continues to pay off. Meanwhile, in the company's earnings call, CEO David Ellison said they're moving forward, forward with the Warner Brothers deal. We remain highly confident that this transaction will close and we're preparing for basically a successful combination once it does. If you take a step back and just look at exactly where we are today, we received approvals from basically, you know, 665 regulators representing 65 countries around the world, you know, including the United States, federal government, Canada, European Union, China and many more.
- [31:38]
Edison, Deutsche Bank Head of Global Space and Aerial Mobility
Okay.
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Bloomberg Tech Host (possibly Emily Chang)
Shares are up 2% or so. Nothing that much to write home about in terms of size and scope. What's the story here? Bloomberg's Hannah Miller is with us. You know, surprise profit. There seems to be a lot of focus on what's going to happen with Warner Brothers. Yeah, there is a lot of focus here.
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Commercial/Advertisement Voice
And you know, David Ellison mentioned on
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Bloomberg Tech Host (possibly Emily Chang)
the earnings call yesterday that he is interested in pursuing an out of court settlement potentially.
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Commercial/Advertisement Voice
So even though this trial is now scheduled for March, you know, things could still change.
- [32:10]
Bloomberg Tech Host (possibly Emily Chang)
How is Paramount's business doing? You know, like I'm trying to think like what's the top hits that I associate with them. We've been through the Sky Dance thing. It seems to be like that merger and integration has gone well. Yeah, we saw strength for its streaming platforms.
- [32:25]
Commercial/Advertisement Voice
You know, they had a big hit with Dutton Ranch.
- [32:28]
Bloomberg Tech Host (possibly Emily Chang)
Fantastic premiere for them. Also the UFC fight at the White House did very well for them in terms of viewership. So they did have some wins in streaming. I loved all of them. Dutton Ranch, Marshalls, Yellowstone spin offs.
- [32:42]
Edison, Deutsche Bank Head of Global Space and Aerial Mobility
Right.
- [32:43]
Bloomberg Tech Host (possibly Emily Chang)
And so let's see what happens with Warner Brothers discovery. Bloomberg's Hannah Miller on the entertainment beat. Thank you very much. There's also Disney. Disney released earnings today before the opening bell, impressing investors with profit surge fueled by its streaming service. But also theme parks shares up 2 and a half percent. Philips securities Research analyst Helena Wang has a buy rating on the stock and joins us now. There was a lot of fighting talk from from CEO Josh tomorrow that Disney is doing better than its peers. Did they give the data points that evidence that
- [33:18]
Bloomberg Tech Reporter
well, we're seeing a really strong performance for this quarter. We're seeing very strong experiences despite the macro uncertainties that we have. If we look at domestic park attendance, the global gas growth, even per capita gas spending, they're all being increasing on the cruise side, it's all very strong. We're seeing very healthy occupancy and forward bookings for their Disney Destiny and Disney Adventure. They've also tried to raise their guidance to the higher end. And for the entertainment side, they've managed to Release Toy Story 5 this quarter and it resonated very well with the audience. It also helped to push up their customer products to the highest growth in the 20s quarters.
- [33:54]
Bloomberg Tech Host (possibly Emily Chang)
Let's listen a little bit to what tomorrow said about the entertainment business, the streaming business and what's in the pipeline. Our ability to outperform our prior consolidated fiscal Q3 guidance and reiterate our full year outlook despite the mixed box office performance demonstrates the strength of our diversified entertainment model. Of course, I'd be remiss not to acknowledge and congratulate everyone on this past weekend's record breaking opening for Spider Man. You know, it's interesting, Spider man did break records, but he talks about the box office being mixed. How much is Disney judged by those theatrical releases and successes?
- [34:37]
Bloomberg Tech Reporter
Well, I would say Disney's greatest competitive advantage is what I call the IP flywheel. So it has one of the strongest and most monetizable IP portfolios in the global media industry and supported by an incredibly loyal fan base built over the decades. So take this quarter for example. Their Toy Story 5 has been successful. So a customer might watch the Toy Story 5 in cinema, decide that he likes it and then goes onto Disney plus to watch in the entire franchise and maybe visit the Disneyland and cruise to interact with the IPs and then purchase related, related merchandise. So yes, even though this time their box office is a little bit mixed, so they live in mixed on their Star wars and also the live action Moana, but they're still able to escalate that outside of theater and bring it into the IPs and the related merchandise. So very few companies can actually monetize their content across so many touch points. And that is what makes Disney Disney's business model so unique.
- [35:35]
Bloomberg Tech Host (possibly Emily Chang)
There was a contribution from parks, right, Particularly to profit. Disney, you know, from a stock perspective I think is trading at 13 times forward 12 month earnings. I'm still asking the question like is Disney a technology company focused on streaming or do we still continue to model it based on the parks and other sort of more physical businesses?
- [35:57]
Bloomberg Tech Reporter
I think you can't really say they're a streaming company company because they're still seeing very strong on their experiences. They're also trying to invest very heavily for long term expansion pipeline. So we are seeing the villain scene area in Walt Disney World, the Aventura experience in Disneyland and of course the new Disney Abu Dhabi. They're also trying to add more cruise ships, find more cruise ship by 2031. And all these additions are going to drive long term revenue for Disney. So I think it would be a little bit unfair to just categorize them as, as a streaming company. It's more like a company that's one of its kind that has competitive strength in its ip.
- [36:35]
Bloomberg Tech Host (possibly Emily Chang)
It's still early days in the Josh d' Amaro era of Disney. But how do you assess his, his leadership of the company and what he's tried to implement?
- [36:45]
Bloomberg Tech Reporter
Well, I think he's the right person. He has the exact expertise to do. I think Bob Egger before he left. He already said that Josh is ready and he's more than ready to bring the company in the correct direction. I think right now Disney, they've already managed to fix so many problems they used to have. So there and previously now streaming is profitable, costs have come down, parks are still generating strong cash flow. So I do think it's going towards the right direction.
- [37:18]
Aisha Evans, Zoox CEO
Of course.
- [37:18]
Bloomberg Tech Host (possibly Emily Chang)
Josh, tomorrow in post since about mid March. What's the next catalyst? What happens in the balance of the year with Disney that you're looking at most closely?
- [37:26]
Bloomberg Tech Reporter
So I think something interesting for this quarter is they've just announced today that they're doing a collaboration with TikTok. So that's quite interesting to me because Disney has always been really protective of its IP usage because that's their core competitive advantage. So this collaboration is Disney acknowledging that customer behavior have changed and they're trying to embrace the changes. I mean Disney plus previously they compete mainly streaming companies like Netflix. But now because consumers, they spend so much time on screen, screen time on TikTok, YouTube shorts, all those short video platforms. So they are trying to embrace the new trend as well. And I think it will also help Disney for their engagement problem. The current problem that Disney plus have is users will click onto Disney plus to watch a specific content that they want to watch and then they will close it. So unlike Tick Tock, Tick Tock managed to convince their user to open the app multiple times in a day. So if they're able to guide that kind of traffic into Disney+ then customer who opened Disney+ so many times per day is less likely to cancel.
- [38:27]
Bloomberg Tech Host (possibly Emily Chang)
Helen Along Philips securities thank you very much indeed. Let's try this again. Ken Griffin. Citadel is cashing in on Wall Street's biggest hedge fund Blow up. Citadel's flagship Wellington funds surged 5.9% in July after buying most of Trouble Situational Awareness's public stock portfolio at a discount. The deal helped lift Wellington's gains for the year to 12%, underscoring Citadel's ability to profit from market turmoil. While many AI focused hedge funds were hit by the tech sell off. Okay, coming up, Zoox will soon start charging for its rides in Las Vegas, marking a milestone for the Robotaxi company and for the industry. We're going to speak with the CEO next. This is Bloomberg Tech.
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Bloomberg Tech Host (possibly Emily Chang)
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Commercial/Advertisement Voice
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Bloomberg Tech Host (possibly Emily Chang)
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Bloomberg Tech Reporter
So now I get to stand in
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Bloomberg SpaceX Analyst
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- [40:52]
Bloomberg Tech Host (possibly Emily Chang)
Zoox will start charging for rides in Las Vegas next week, marking a big commercial milestone for the company and a first for a steering wheel free Robotaxi in the US CEO Aisha Evans joins us. Congratulations. This is something I've been questioning you about for years.
- [41:12]
Aisha Evans, Zoox CEO
You have?
- [41:14]
Bloomberg Tech Host (possibly Emily Chang)
You're allowed to charge a fare now. What's the plan?
- [41:16]
Aisha Evans, Zoox CEO
First, thanks for having me. Exciting starting this phase of the journey. We start in Las Vegas next week on Monday and then we have San Francisco coming up. We have more permits to get in California later this year. Miami and Austin will be entering Atlanta and L A. And then we've also started testing in Dallas and Phoenix, so you can assume the robotaxis coming. So starting now, the commercial journey and bringing what we think is this deal delightful experience to customers.
- [41:50]
Bloomberg Tech Host (possibly Emily Chang)
So there's going to be a base fare and then the final fare gets calculated based on the distance traveled and how long it takes to get there and your assurance it'll pick the best best route but put some sort of dollar figures behind that, how it compares to jumping in an Uber or a Lyft driven by a human.
- [42:06]
Aisha Evans, Zoox CEO
So we're anchoring around what we call the comfort pricing. This is known in the industry as a category of fare. One thing, that one decision we've made, it's so early in the journey. So whatever we quoted you in terms of the best routes, that is what we will charge you so base fare, time, distance traveled, there are some surcharges. So for example, the airport is not starting on Monday. The rest of the destinations are, but it'll be coming online soon, so there's a surcharge for that. We're also offering some delightful experiences to the sphere with a special.
- [42:39]
Bloomberg Tech Host (possibly Emily Chang)
This is in Las Vegas.
- [42:40]
Aisha Evans, Zoox CEO
In Las Vegas with a drop off. So there might be an additional fee for that. But whatever we tell you we're going to charge you is what we're going to charge you. If we took a little longer or the route was a little longer, we are not going to change the price.
- [42:55]
Bloomberg Tech Host (possibly Emily Chang)
What are the learnings from Las Vegas? You know, I think the very simple question is are people that are in Las Vegas and hail as Zoox prepared to pay for it?
- [43:04]
Amazon Health AI Narrator
Well, we're.
- [43:04]
Aisha Evans, Zoox CEO
We're about to find out.
- [43:05]
Bloomberg Tech Host (possibly Emily Chang)
We think so you must have an indication.
- [43:07]
Aisha Evans, Zoox CEO
Yeah, the demand has been awesome. We've been monitoring from customers not just how do they enjoy the experience but what they are willing to pay for it. So we are cautiously optimistic that they will be happy to pay for this experience and hopefully that will also modulate a little bit of the wait times that you see in Las Vegas right now.
- [43:27]
Bloomberg Tech Host (possibly Emily Chang)
Because it's free charging affairs. The at big piece of news because it allows you to progress commercially right beyond R and D. But it's not the only piece of news. So regulators said over the next two years you can deploy 5,000 of the Zoox on public roads. How do you respond to that? Like what's the ramp up in production and deployment?
- [43:46]
Aisha Evans, Zoox CEO
So I haven't changed. Measured approach, but you can see you're laughing. Measured approach but you can. I mean one of the things we are looking forward to forward to was starting the commercial journey, but also just starting to unleash more robots now they're not going to come all at once. We'll slowly ramp up the flare of the the fleet size at all locations and we think that 5,000 is only the beginning.
- [44:11]
Bloomberg Tech Host (possibly Emily Chang)
For the record and the tape. I don't know which camera the director wants me to look at. I'm not laughing at Ayesha. I'm just smiling because you're always cautious. You're always very deliberate in the timelines that you you set out. More modest than other CEOs we've heard from in the last 24 hours. But you know, you have utilization data in lots of cities. There isn't necessarily a match of the supply of those vehicles to the demand right now.
- [44:34]
Aisha Evans, Zoox CEO
We're very confident in the utilization, I mean, look, it can't be 100% because we have to go pick up people, drop them off, go pick up the next customer. But the industry quotes are around 54%. We're very confident that we will beat that. And, and we've seen that from customers.
- [44:52]
Bloomberg Tech Host (possibly Emily Chang)
Zoox is owned by Amazon.
- [44:54]
Amazon Health AI Narrator
Right?
- [44:55]
Bloomberg Tech Host (possibly Emily Chang)
How much pressure are you under to deliver some commercial success, bring in some real revenues and money?
- [45:02]
Aisha Evans, Zoox CEO
A lot less pressure than I put on myself. How's that? It's been a long journey. We're celebrating our 12th anniversary. So starting this phase, I mean, we've all always said we're here to build a business. We're here to deliver an experience for people and frankly to change how people move throughout society. So Amazon is a great parent. I have zero complaints, literally. But you know, a lot of us have been waiting a long time and so to finally sit here and talk about building the business as opposed to just the progress of the technology scheme. Now having said that, safety, foundational and performance, well, that's key.
- [45:39]
Bloomberg Tech Host (possibly Emily Chang)
What people might not be familiar with is that you build the Zoox here in the Bay Area. Just talk a little bit about that quickly.
- [45:45]
Aisha Evans, Zoox CEO
The factory is great, it's producing. It's nice that we used to talk about how many robots per week. We're now talking about how many robots per day. It's cranking. They are ready to go and we'll start unleashing them into these multiple locations.
- [46:01]
Bloomberg Tech Host (possibly Emily Chang)
I Evans Zig CEO back with us on Bloomberg Tech. Thank you very much. My pleasure indeed. Some news crossing the Bloomberg terminal a few moments ago. Sources tell Bloomberg that hackers launched a wave of sophisticated attacks on Wall street firms in recent days targeting information systems at major money managers including Two Sigma, Citadel and Point72. Several private equity firms were also targeted as part of the assault. This again occurred according to sources. We're going to keep tracking the story and bring you any developments as we get them. Coming up in the show, Space X is taking aim at the telecoms giants. We're going to look at the company's ambitious wireless plans. This is Bloomberg Tech.
- [46:50]
Commercial/Advertisement Voice
As far as revenue. Like I'm just going to take a very high level, kind of top down, the big three in the United States, at and T Verizon and T Mo roughly between them $600 billion a year. And I anticipate us to be able
- [47:08]
Bloomberg Tech Reporter
to acquire quite a few of their
- [47:10]
Bloomberg Tech Host (possibly Emily Chang)
customers because I think our service will be better.
- [47:13]
Commercial/Advertisement Voice
We will eliminate dead zones. Leveraging the.
- [47:17]
IBM AI Narrator
The.
- [47:18]
Commercial/Advertisement Voice
The basically the satellites in orbit that
- [47:22]
Bloomberg Tech Host (possibly Emily Chang)
was SpaceX president Gwynne Shotwell speaking on yesterday's earnings call and outlining the company's wireless ambitions. Bloomberg Intelligent analyst George Ferguson says the connectivity business should continue to benefit from steady growth in subscribers and expanding satellite capacity. And George joins us now. There's a lot in that, but basically they said we're going to combine the work that they've done in satellite space activity, Starlink Direct to Cell with terrestrial investments and go after the US carriers. How did you react to that?
- [47:54]
George Ferguson, Bloomberg Intelligence Analyst
Yeah, I mean that's, that's what I heard. So look, I'm just going to caveat. The start of our discussion with John Butler covers those companies. He and I talk about it and we've talked since the earnings those terrestrial carriers. The discussion around it seemed pretty aggressive, right? I think they talked about running most of broadband in a decade or something like that. And yes, look, you know, near term when we discuss the technology they have here. Right, look, I think the new satellites, the V3s are coming out, they'll be better but there's still a bunch of latency between satellites and terrestrial stations. I really feel like their broadband service is really one that's going to initially get built around where there's gaps in coverage for terrestrial, you know, for trusted providers. They've got to improve that service dramatically. That's one of the reasons why you're seeing so much capex and R& D, I think in order to go after those major carriers and take a lot of that market share and the revenue I think they were pointing to yesterday, and I would note as I sort of close my comments initially is that look, I don't think those carriers are going to roll over and just give all their customers away, you know, know to SpaceX. So I think you have a good old fashioned price fight on your hands. So I'm not sure that you're going to get everything you think it's worth even if you go out and try to conquest all their.
- [49:19]
Bloomberg Tech Host (possibly Emily Chang)
Good point.
- [49:19]
George Ferguson, Bloomberg Intelligence Analyst
Other customers.
- [49:20]
Bloomberg Tech Host (possibly Emily Chang)
I mean Gwen Shotwell said they will acquire those customers and you know that word acquired doing a lot of work. Let's go back to the core earnings outlook thesis. Space X's losses generally overall narrowed in part part because the connectivity business is still the cash cow.
- [49:36]
George Ferguson, Bloomberg Intelligence Analyst
Yeah, agreed. But I mean look, I was. One of the things I kind of hate to do as an analyst is to take a look at sort of six month chunks but I decided to do it anyways because it's a company that's growing so fast and I messed around a little bit with that. Right. And so in most of their businesses, well, I mean one first, we know that, we know that space, the launch business and I both were loss making. Neither one of them returned, you know, any type of profit. There's a lot of R and D going into both those businesses. Really, even when you back the R and D out of launch, it was a flattish business. It looks about as good this year at midpoint as it looked last year. And you know, look, I think the, you know, the connectivity business, they grew revenues 50%. They grew profit like 46%. So margins, you know, a little bit deteriorated. So they're, it's a, it's okay, right? It's, it's performing okay, I think from a longer term. And then I, you know, they, they, they, you know, really raised a lot of revenue. I think it was like six times or so. Sorry, 1.3 times. But cost rose six times time. So kind of hard to win at that. So.
- [50:52]
Bloomberg Tech Host (possibly Emily Chang)
Right. George Ferguson of Bloomberg Intelligence, thank you for your service. Looking at the numbers that does it, this edition of Bloomberg Tech. Tune in tomorrow. We're going to speak the CEO of Western Digital. After their earnings talking data storage, hyperscale infrastructure, a whole lot more. It was a big show recap on the podcast. You know where to find it. This is Bloomberg Tech.
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Bloomberg Tech Host (possibly Emily Chang)
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