Doximity and Investor Exceed IPO Goal

You can also listen to our radio show at two pm Eastern Time on Bloomberg Radio or watch us on YouTube search Bloomberg Global News. Well, it's the international cover story this week. It's about something that we were all mesmerized by for one week back in March, when global shipping tim came to a halt, when they ever given got stuck in the Suez Canal and how it happened. That's a story. It's the international cover. And joining us now is Joel Weber, editor of Bloomberg Business Week. He

joins us here in the Bloomberg Interactive Broker studio. Also joining us Kitch chellel senior writer at Bloomberg News, joining us on the phone from London, Joel, I learned more about shipping and ever Given then I've ever thought I could know. When I read this piece, well, uh, you know if you everyone, everyone became an expert for a week, right, and then the moment that it got dislodged and was

able to move again, everybody forgot about it. And that's exactly when Kit was like, do you want to know everything? And I was like, yes, tell me everything. And thus began the odyssey to explain not only how they ever Given got stuck, but the quagmire that it finds itself in. Now, um, kid, there's so much fabulous reporting. Um, can we just start with the audio? The the audio from the bridge? Yeah,

what happened? One of the one of the one of the things that got me excited about this story was I felt like I didn't still didn't understand how the ship had crashed. You know, it's a straight come out, It's not technically very challenging. In some ways. It was windy, but you know, it's always the Egypt at that time

of year, so I didn't really understand what was going on. Uh. And then we discovered the existence of the v d R, which is the voyage data recorder that records all the conversations that are held in the bridge of a ship

like this. So the Egyptian authorities had access to everything that happened on the bridge before, during, and after the crash and becurse the ship was seized by the ad diptional authorities, and because there was an ongoing legal dispute, we were starting to get when that some of the evidence from from from that transcription from that audio was going to emerge, we might find out what called the crash and and obviously we didn't get to hear it

because it's under lark and key in Egypt. But one of the things that we learned was that the captain actually got conflicting information um and and what how did that transpire according to the reporting that you guys were able to get. So what we do know about what happened on the bridge when the ship crashed was there was a chaotic situation. These these pilots had boarded the ship, Egyptian pilots whose job it is to steer giant ship through the canal. They spoke mainly in Arabit and on

the bridge. Also was the captain who was an Indian gentleman and his crewman who spoke mainly in English, and there was this situation where there a dispute emerged about whether it was too windy to enter, and then once they were inside the canal, how to keep the ship on a straight keel, And the argument became quite forceful and the pilots threatened to leave. And while all this was, while this was going on, but they lost control of the vessel and it crashed. So well, what about now?

Because I think, as Joel said, and I think people were obsessed with this story for six days and then so many people, like we do with with with big stories, I think as as consumers, we move on. And I think people were really surprised to find it have been really really surprised to find. And then hey, the status of the ever Given rain how is kind of still up in the air. Yeah. I think most people just assumed the ship had sailed out from kind of about

this business, but no, it was. It was seized shortly afterwards. It never left the Sewers Canal. It's in fact still there because the Egyptian government is seeking a billion dollars or so in compensation from the ship owner, and really the only leverage that the Egyptian authorities had with the ship itself, so they refused to let it leave, and the crew and the captains found themselves almost as pawned in this in this big money game, um and they're

still there. Just this week, it looks like there's going to be a settlement, that they've reached a tentative settlement, and the crew and captain will be hoping they can leave in the next few weeks. But you know, there are there there are stories of sailors who have been stranded on vessels in the Sewers Canal over legal dispute and stayed there for years. So it's a really bad

situation for the crew in particular. Well, and what's interesting is, and you really shed a lot of light um Kit on this, is that there's a lot of parties involved in these massive ships. There's the owner of the ship, there's companies that provide the people who are on the ship, and then you've got the Egyptian pilots who come on

and help it through the canal. And there's a lot of finger pointing, it sounds like at this point because from what I understand and you're reporting to, those pilots were bickering while they were going through the canal, and they were bickering when they came off the ship as well. Yeah, the modern shipping is really complicated. Things get messy whenever there's legal dispute because you've got the owner of the ship, the crew of the ship, the owners of the cargo.

There were seventeen thousand containers on board the ship holding things like Nike shoes and Lenovo laptops. You've got the insurers involved ultimately are going to pay the bill. You've got the Egyptian government. All these different parties have different interests and it gets really complicated. My other favorite scene in the story kit is the court scene that that went down, and what can you tell us about what

transparreed there? It was this amazing day in the court in Amailia, which is almost exclusively for shipping disputes that happened in the canal um and we just we were we were fortunate to happen to be there when the ship owner suddenly pulled out a new legal strategy. Until that point, the conversations had been very civil and looked

like they were working towards the settlements. When we were in court, that all changed and they suddenly played their their wild card, which was to say it wasn't alful this crash. The Egyptian authorities in the Egyptian pilots bear some of the blame, and we have this audio from the bridge that proves it um. So it was actually he was very dramatic importance, very tense, and it was a remarkable scene. The ship's kids are getting bigger. The

Suez Canal is so important to global trade. I was so surprised after reading this that this hasn't happened many times in the past. It to me seems just like a matter of time until this happens again. Considering that, well, the ships are getting bigger. So here's an interesting thing.

The day before the canal was completed in the nineteenth century, just before they were about to hold the first ceremonial blow killer of vessels along it, they had an incident the night before and a ship got stuck and blocked the canal. And it's a more night to free it. You know, it's it's a narrow channel. It's two hundred meters wide in places. That sounds like a lot that wasn't container ships are so enormous, But there's not a lot of rooms, and in a way, it is amazing

this hasn't happened before. You know, fifty ships going through each and every day, and it really is only a matter of time before one of the really big ones get stuck again. I don't want to end. I want you to just keep going. Kid. This is an incredible story, a great right through, and I highly recommend everyone pick up the magazine. Go to Bloomberg dot com, business Week dot com or the Bloomberg check it out. KITCHELLL. Senior writer of Bloomberg News, Joe Webber, editor of the magazine.

You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. So in Public Today healthcare platform Doximity, an investor raised six hud six million dollars after preston IPO above the marketed range. This is according to the company, the profitable San Francisco based company, selling twenty three point three million shares twenty six bucks each after marketing them for twenty to twenty three. Let's get more on the I p O and the

outlook for the business. I should point out shares of Doximity flying in their first day of trading, up se up more than nineteen dollars at forty five eleven a share. Doximity Chief financial Officer Anna Bryson joins us on the phone from the New York Stock Exchange. Anna, good to have you here with Tim and myself on Bloomberg. Congratulations, the i p O out of the gate really strong. First of all, when this happened, and we've got to ask you, feel like some money was left on the table. No,

absolutely not. We're really really proud and happy that we had a positive outcome for our physicians who participated in this IPO. We had over ten thousand physicians participating in this i PO and and that's more important to us than any additional funds for for our company. Explain what you mean by that, because increasingly we are seeing companies offer shares when they do go public to groups of people who traditionally don't get to participate in IPO. So

explain what you did. Yeah, So we did a directed shares program for our physicians which enabled them to participate in the i p O at the offer price. And it was critical for us because the physician is at the court of the mission. Physician first is our guiding principle, and the physicians really the reason that we've been able to build this leading digital platform for medical professionals. So they're the reason we're here. So it's very, very important

for us to have them participate in the IPO. I'm wondering how you community heated this to physicians, because in preparing for this this interview, I did reach out to a friend of mine who's a who's a doctor, and I told him I was interviewing executives from the company today, and he actually didn't even know it was going public. Interesting we did. We did send out a lot of emails. Um. We we contacted all of our physician members via email

to give them the opportunity to participate in the offering. So, um, it was mostly for our physicians that that do use our platform. Yeah, well, I should say he uses the free tier. I don't know if that if that matters, Oh no, that as long as he's using our platform, it does not to us. We did not discriminate over if if they paid a version or if it's free. Um, but we we did send out email last and many of our members. I should tell him this is why

you have to be sure to read your email exactly exactly. Well, and what I understand is you've got one point eight million verified members on the platform. Of those one point million, how many did actually participate in the directed shares program. We had over ten thousand positions participate in the director Shares program. Alright, good to know. So tell us about the metrics going forward. I mean, you've got multiple tiers. One is free as him just mentioned and his his

friend that taps into that. Uh, you've got what almost twenty dollars a month as a provider that you can tap into, and then hospitals are also tapping into it. Um, that's the that's how you that's the financial model going forward. Yes, so we actually sell almost all of our offerings are free for our positions, So all of our tools are

free for our physicians. We do have a premium feature of our telehealth tool that we we do sell to our physicians for as you mentioned, about twenty dollars a month. But the main way we monetize is by selling into the healthcare space. And healthcare is an industry that's long been very under index on digital spend and it's in the midst of a digital transformation. And we currently work with twenty of the top twenty hospitals and twenty of

the top twenty pharmaceutical companies. And that's the main way I monetize. So r M is never to make to make money out of doctor's pockets, but but to focus on on the healthcare and industry. All right, so what does the health care space get out of it? Uh? And and I'm assuming then that's the bulk of your revenues in terms of percentage wise, that's correct. Um, So he health systems customer would use us in order to

in gender referrals. So we allow them to potentially connect with a colleague or a key opinion leader in order to give share brand awareness about what's happening at that hospital or what's the new the new therapy they're they're

focusing on in order to engender referrals. How did it grow during the pandemic Because the doctors who I've spoken to have talked a lot about how uh it offers telehealth and it gave them an opportunity to also contact their patients not just through telehealth, but also by calling them from their cell phones. But making it look like you could actually we're calling from the office. Yeah, that's

that's one of our one of our favorite features. Uh. You know that during the pandemic, these positions have long been using our tools for for a multitude of years. You know, we've been in place for um and during the pandemic, they when you know, physicians couldn't see any of their patients face to face, they started using our telehealth tools dramatically at a much much faster pace. And we were really proud to do our part in the

pandemic and give back. And we actually didn't even start charging for any of the telehealth features at all, even to our health systems until January one, so we really gave it away for free for those first eight or nine months of the pandemic, and that was really really critical for us. We were very proud to do that.

It sounds like an ultimately I think about companies that outsourced back office operations or customer service operations, and it feels like, in many ways, you guys are looking to do that for the medical community, doctors specifically, and the doctor communities at major hospitals. Is that what it's ultimately about. That's exactly right. We have a multitude of ways in which physicians can use us, But we want to enable them to collaborate with their colleagues, stay up to date

the latest medical news and research. They can manage their careers. They could conduct virtual patient visits. We're replacing that that that facts machine and some of the more anequated technology that that they've been using for so long. And um, we're trying to be a smartphone hub really for them. Listen, research is a tricky one. How do you how do you stay ahead and make sure you do have the latest and greatest research for those members on the platform.

Just got about thirty five seconds left here. Yeah, of course we do physicians summits. We are constantly connecting with our physician members and getting feedback from them in order to grow our product suite for them, so they are directly involved in our product groom up. How big can this company become? I'm just wondering because it sounds like you guys have a lot more revenue streams that you can pursue. Forgive me, and we just got about twenty left.

I think we have a tremendous organic opportunity ahead of us. As I mention healthcare and industry that is in the midst of a digital transformation, and we look forward to continuing on this journey and seeing where it can go. And I'll get back to you on that one, all right. We'd love that, would love to hear more. We've talked to Peter Alprin who's on Doximity, and we've talked to him a lot throughout the pandemic. So look forward to more on this company. Anna Bryson, thanks CFO at Doximity

on the phone from New York. From the New York Stock Exchanged, the stock up about's first day of trading. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. This is among our most read stories on the Bloomberg and you'll understand why in a moment. It's about the billionaire co founder of PayPal, a vocal opponent of higher taxes, who tim a mass billions in a tax free roth ira

a according to a Pro public A report. Wait what okay, so how does this sound turn less than two thousand dollars into a fortune worth more than five billion dollars? And the cherry on the on top tax free. How do I do that? Let's ask Stifferman, personal finance editor at Bloomberg News. He's joined us here in the Bloomberg Interactive broker's studio. How did Peter till do it? Well, you know, these raw iras, they were really designed for the middle class. If you make a certain amount of money,

you can't even open one. And uh and the contribution limits right now is six thousand dollars. When Peter tile opened this, according to ProPublica, the contribution limit was two thousand dollars. So how do you get um five billion dollars out of two thousand dollars? Well, he did it um.

What he was he PayPal at that time, which he co founded, was a private company, and he took some shares which um were supposedly valued at a tenth of a cent per share, took about two million of them and stuffed them into this IRA, and then within months, less than a less than a year, the value just skyrocketed to millions of dollars. And that raises the question of like, were these shares actually worth ten cents a tenth of ascent at the time? Maybe not, But what

he's been able to do very skillfully. Pro Publica showed is moved from pro PayPal, which is incredibly successful, to Facebook, which incredible was incredibly successful, onto Palatiner Technologies and it's now five billion dollars because once that he was then allowed to play with that money within that fund. Correct. Yes,

and the money, this is the thing. It's the money, a traditional ira a. When you take the money out, you pay taxes, a roth ira a. Once it's in there, it's tax free forever for for the rest of your life at least and um as long as he waits until he's fifty nine and a half, which is the rule you have to be a certain age to access these retirement accounts. He pays no money when he pulls the money out, pays no taxes when you pay some money out. So we were talking about this story all day.

We talked about it on Quick Take earlier with Douglas Bonaparte. He's a Regitered investment advisor. He's big on Twitter, and we asked him the question of whether it's legal, and because it's getting so much outrage, he told us it's it's perfectly legal. But still now there are there's pushback

already from Democrats right now about trying to close this loophole. Well, what's legal is um is what is the idea of putting you know, putting this making a really smart bet and then like having an explode that makes total sense? The question really is um, what was Were the PayPal shares really at the value that he said they were? So the I r S could have back in the day gone in and that challenged them. But as we know, the I R S budget has been just been gutted.

They don't have the resources to go after these folks. And there's a ton of people in silicon value who try this trick. Um. Peter Thiel got lucky. Um, you know, he put in the right stock at the right time and it just exploded. This goes to when we're talking about the infrastructure plan, how to pay for it, you know, putting more money into the I r S to kind of go after some of these individuals who've been able to really avoid you know, or just come up with

some interesting tax strategies. The thing is in your story and you point out, and I guess from some of the pro publica data, he's not alone in doing this. No, I mean, maybe not to this extreme, but nonetheless there are others who've done it. There's definitely others in silicon

value who's done who've done this exact technique. A more common thing is something called a backdoor Roth conversion, where you take a traditional IRA, you pay some taxes on it, a bunch of taxes on it, and then you converted into a ROTH that's completely legal. It was a way that the George W. Bush administration tried to raise some short term revenue at the cost of some long term lost to the to the treasury. Um that's that's something Wren Buffett has used um and that's what the Propolica

story showed. But UM ron wide and the Senate Finance Chair has proposed somehow limiting Roth diaries to five million dollars, basically saying over five million, maybe you get taxed or something. I'm not sure exactly how that would work, but he's come out he put out a proposal a few years ago, and he just said today's planning to bring it back. Today's story is part of a bigger picture about wealth and what we've learned about the wealthiest people in the

country when it comes to taxes. And I'm wondering how the story plays out in Washington, because we have heard Democrats, specifically Elizabeth Warren is among them, um calling for ways to make sure that some of these loopholes. I know, we keep calling it a loophole. I don't want to to be a legal definition, but the ways that some of these people have been able to um, you know, uh, not pay what many people say of their fair share. Yes, so Pro Publica has gotten somehow gotten their hands on

these confidential tax documents. Very controversial and there's an investigation of how they got their hands on these things. But

they're planning a series of stories using these insights. And so we already know from previous reporting by them that a lot of billionaires in this country really don't pay any taxes or they're able to offset their income um with losses and really aren't paying what you would expect a billionaire to pay, just because they're able to manipulate the tax code and manipulate the amount of income they recognize.

I mean, we've heard from billionaires over the last few years when it comes you know that they acknowledge that there are tax strategies come completely legal, but that enable them to not pay a lot in taxes, and it's an interesting Ben, I feel like backdrop, especially as you know they are taught, you know, talk in Washington about kind of what to do in terms of maybe new tax policy. Yeah. I think it's really pays for taxes. Yeah, I think this might raise the pressure on Congress to

do something. It's hard for Congress to to to to raise taxes. It's it's it's hard for a lot of wealthy people are in Congress who are using these techniques. Um, they're very some of these are very common. Um. The Peter Teel thing, um, five billion dollars in row diory. That's an extreme outlier. Peter til say anything. He has not responded to Comma all right, just trying to be fair. Um, good stuff as always, Ben Steverman. He is our personal

finance editor. Check them out at Besteverman on Twitter here at Bloomberg News Journal. Yeah but you let me drive? No, no, no, all right, please, I want to drive. Drive question. This is the drive to the Globe community. Thanks, we'll drying us Dawn on Bloomberg Radio TikTok, everybody, About ten and a half minutes left in today's trading session. We are definitely off our loads of this session, holding near our highs.

When it comes to the Dow Jones industrial averages, you's just heard Doug talk about let's get to it our drive to the clothes with Matt Tuttle. He is chief executive officer also chief investment officer at Tuttle Capital Management. He's joining us on the phone from Greenwich, Connecticut. The firm, by the way, it's a money management from offering thematic and actively managed e t F. Hey Matt, nice to have you here. What's in your mind today when it

comes to the financial markets. Well, I mean it's it's a bowl market. The bed left the punch bowl out. Looks like we're getting infrastructure. We got second quarter, you know, we got earnings coming out next month, and analysts probably underestimated stuff. So you know, we we love what we're seeing. Um, you know, definitely still like buying the dips. H you mentioned infrastructure. We got to talk more about it because the DAO is significantly outperforming the other major indices because

of optimism about infrastructure. Is that telling you that investors certainly seem uh that to think that this actually this bill will become law even though it is on this dual track with the quote you know software infrastructure package that progressives want, you know, I think that's part of it.

But to me, the bigger thing is the fact that value sold off, you know, in a real big way last week, and you know, you've really got you know, a situation where things are going back and forth when investors are buying the dips, so you know, big send that. You know, a day like today, you've got value, you've got financials doing really well. We's got really crusted last week. So I think that has probably even more to do

with it than the infrastructure deal. Matt, sounds like you're on an infrastructure site right now and you're building a building. Sounds like you're outside. Hey, you know, you are very bullish. It sounds like you said, you love what we're seeing. You're buying the dips what specifically, so you know, specifically, we're we're buying the value stocks, We're buying the reopening play. You know, we we love to buy stuff when it goes down, and that stuff went down last week. We're

we love the meme stock. You know, we don't think that's you know, we don't think that's going away. You know, at anytime soon. Uh so you know those are our favorite things right now. Um yeah, I mean it's it's the memes that, it's the value the folks, the phone, we have the Fomo week TF so yeah, that we we love. We're we're big into you know, buying anything that's going up. So tell us how the Pomo et F works. So the Fomo et F is designed to be able to go into whatever themes happened to be

hot at the moment, which includes the meme stocks. So you know, we start off with kind of figuring out what at any given point in time is fomo. So right now, it's stocks that are popular with retail investors. It's you know, stocks that are the memes stocks and maybe the future memes stocks are stocks were can have short squeezes. It's stocks that are popular with hedge funds,

and it's innovative technology. We start off with that masket, and then we're looking for, you know, what is in an up trend and we're gonna buy that and and try to keep writing it up. But we're also looking for what has been in an up trend, has recently sold off, and we're looking to buy into those names as well, and really the portfolios split fifty fifty between stocks that are currently going up and stocks that had been going up but it had sold off recently. And

that that's send to smooth things out a lot. Just looking at some of your top holdings, I mean it reads kind of like a who's who of some of the corporate space. Coca Cola is in their Walmart's in their Lockheed Martin, United Health, Invitation Home, Cisco Systems, not the food Cisco, but the Texaisco. How much movement are you guys doing back and forth though, if you're trying to kind of play the winds here of what might gain what might not, because it sounds like that will

can create a lot of activity. Yeah, I mean we uh, sorry about the train going but see I knew you were outside. I am, I meant the train station. We really balanced the fund on a weekly basis, So yes, there is a lot of movement back and forth. You know, the ideas we want to stay in harmony with what's going on in markets, so you know, we don't There are a bunch of index funds and rebalance like twice

a year, four times a year. I mean, that's just not so much as going on so quickly you can't stay in harmony with what's going on, so we rebalance every week. Huh um. When you say the meme stocks are here to stay, what do you mean by that? Do you mean that the meme stocks are there's going to be like a new meme stock each and every week or every few days, something that's talked about in Wall Street. That's because we have access to commission free trading from in the palm of our hands. Is that

what you're saying? So basically yes, and it's more than commission free trading. It's you've got a group of retail investors now that have access to the same quality information that you know we as institutional investors that act to do. The biggest piece of it is they're connected now, you know, through these chat rooms, Wall Street, bets and you know, stock twid and all of these things, so they can wield influence that you know, is is it powerful? Is

any institutional investor? Oh? Yeah, I mean it's you know, it's not gonna always be game stop in AMC. At some point those things are you know, fundamentals are going to come back and those will crumbles onto the next and onto the next This is something that's not going away. These guys have power now, and what history has told us is people who have power don't give it up willingly. You also, are you know, all in on this back space um that seems to be volatile, no doubt about it.

The performances down after initial kind of move up, and there's still a lot of questioning about the transparency and what investors are getting. You gotta be wary there. So it depends on on what you're doing. So we've got three funds in the fact space. One ftc X is pre merger spacts, you know, ten dollars in cash looking for a deal, and you know we're buying those companies that under ten. So you know, to me, that's that's not a bad thing, buying something for less than ten

that you know, worst case you're gonna get ten. Then we've got two d S back fawns, one inverse and and one long based on the d S back in deeck. That's volatile. That index moves. So you know, we launched those funds about a month ago. The long funds up like or something, and the short funds about that. You know, those Lordstown Motors quantum escape Clover. I mean, that's the stuff that really is high octase. Alright, we're gonna leave it on that note. Hey, Matt us to get some

time with you. Matt Tuttle, he's CEO and CEE IO of Tuttle Capital Management, joining us on the phone from Greenwich, Connecticut, FOMO and SPACs. That is certainly something he is looking at the train station. A perfect day for to talk about trains, right, infrastructure, no doubt about it. Thanks for listening to Bloomberg Business Week. Download the podcast on iTunes, SoundCloud, or Bloomberg dot com, and you can also listen to our radio show at two pm Eastern on Bloomberg Radio

or watch us on YouTube. Search to Bloomberg Global News