Apple, Amazon, Twitter Earnings

he had to say. And just as Elon Musku is poised to take over Twitter, revenue misses the slowest growth in six quarters. This on top of a new report that the FTC is investigating how Musk disclosed his purchases of Twitter shares as he amassed a massive steak in secret and qualcom source as the Chip Giant diversifies beyond phones to cars, networks and computers, CEO Cristiano Amman joins us later this hour. We will get to all of that in a moment, but first we are watching Apple

and Amazon results. Also out this hour, Bloombriggs Emily Grafao joins us now to see how investors are reacting. Emily take it away hi Emily Will was a largely green day for the US stock marke at the SMP five hundred ended up two point four seven percent, and the tech heavy Nasdaq one hundred also ended up higher three by three point four eight percent. That was the largest one day game since March sixteenth. We also saw yields higher but didn't seem to bother US equity investors from

buying up stocks. And of course it was a largely risk on day. So we also saw bitcoin finishing the day in New York higher. We tend to see that risk on trade. Bitcoin tends to get higher. But the big story of the day was really all about the big tech earnings coming up. We're gonna look at Apple right now because the stock is rallying after reported earnings. They are up right now about point four seven percent.

They beat on sales, they beat on profits. They reported sales rising to about ninety seven point three billion dollars in the quarter. It was largely fueled by demand for iPhones demand for their web services. They also announced a ninety billion dollar stock buy back program, and so you're really seeing that optimism reflected uh in the stock price, but it wasn't positive for all of the big tech companies. I'm looking at Amazon right now, down nine point five

four percent in the post market. They missed on sales for this quarter, but they also projected um a forward guidance that was lower than analysts expected for the next quarter. And it was the same thing for Intel. You're seeing until down about four uh percent in the post market. They also projected that that forward guidance for the next quarter was going to be lower than analyst estimates. Twitter

also reported earnings this morning. It was one of the final earnings reports before Mr Elon Musk take the company private. They did miss on revenue, but interesting to note they did report a six increase in their daily active users, so daily active users grew to million, and that beat estimates. And then we're also seeing again that Apple shares falling lectually a little bit now um in the postmarket. Emily, all right, Emily graffe O, thank you. Lots to break

down throughout the show. I want to start with Apple beating estimates yet again, shares rising in extended trading. This Apple's biggest non holiday quarter ever. I spoke with Apple CEO Tim Cook just moments ago to break down his remarks and the numbers I want to bring in. Juliasc vice president and principal analyst at Forrester Research, and Tom Giles are Bloomberg Tech Executive editor. Thank you both for being here. Looking across the board, it is fairly impressive

to see how Apple weathered the macro environment. On the call with me, Tim Cook said it was a record quarter. We grew in each of our categories except iPad, where we had very significant supply constraints. He said they did experience apply constraints, but they were significantly lower than what they experienced in December, and that they were all silicon shortage related, so chip issue related. And it's of course

that's an industry wide issue that affected several of their products. Julie, what's your big takeaway that despite they supply constraints, despite macro economic uncertainty, Apple still blowing it out of the water. Yeah, no,

it's it's exciting to watch. And I think you know, one of the things that we always know about Apple is there in terms of like worldwide market share for something like smartphones or PCs, they have a minority stake relative to Android and some other platforms, so there's always going to be a lot of upside and Apple is always going in a forward direction. It's very common that if I own an iOS smartphone or I own laptop maclaptop, are more likely to buy an Apple device with my

next purchase, a more likely to buy Apple services. So the stickiness of their devices and services is very high. And so yeah, there's a lot of upside for Apple ahead as we look forward, Tom, how don't score this with with Amazon's results, which we're going to dig into a little later in the show, but sluggish second quarter sales. Uh. Tim Cook did say they're seeing inflationary pressure, but that in their op X and gross margins you see that

reflected and they're navigating that as best they can. But still these numbers, it's a night and day situation here. Apple benefited from the fact they introduced a new lower cost iPhone that started to kick in during the quarter. iPhone continues to be this big money maker for them,

and they really took advantage of that. And as your other guests pointed out, services they keep they keep adding services, and they keep making that an attractive proposition for iPhone owners and getting you to come back to it, whether it's app downloads, whether it's entertainment, etcetera. So it just keeps going on and on and on Amazon huge contrast inflation inflation. Inflation seems to be a big issue there.

You're talking about rising fuel costs. Remember we broke the news that they imposed a surcharge for their their partners to account for rising fuel costs and other inflationary pressures. That took a toll over. Capacity is another important story about Amazon, and they really invested in warehouses, they invested in people because remember Amazon had this surge in demand during the pandemic. We were all at home, we were

all ordering everything online, and that hugely benefited Amazon. That party cannot continue forever, and we are starting to see the effects of the trail off in the pandemic fueled boom that Amazon benefited from for so long. Now. I did ask for Tim Cook for more color on the current corn and what he sees through the end of the year, when it comes to demand, when it comes

to supply chain issues, when it comes to Russia. He said they'd get into all of that on the call, and we are listening in and you can follow on along at our t live block. He actually said they're going to be giving an number on Russia revenue specifically, and what kind of a hit they took their given that they paused sales of products. Julie, what is your outlook on how Apple will continue to whether supply constraints should they persist given an ongoing lockdown in China? Yeah, so,

well that thing is supply chain analysts. I think, you know, Emily, you really kicked it off, and you started the call and said, you know, despite whatever happens, whether there's a war, there's a pandemic, there's supply chain issue, there's a lockdown

in China, Apple continues to weather it will. So you know, they just seem to be somehow better positioned than perhaps some of their competitors and consumer electronics to ride through the supply chain issues even though it is impacting you know, one or two of their categories today. So I just

tend to never underestimate what Apple can get done. All right, I want to talk a little bit more about their services business, because, of course the other big story in the business world is streaming and the decline we saw on Netflix subscribers. Of course, Apple has a signal, you know, a significant position or has made a significant bet there with TV Plus, and I asked know how that's doing and if they're still as bullish on streaming. He said,

we're very bullish. Our philosophy for TV plus from the beginning and it continues unchanged is to create high quality, original content that aligns well with our values and to be one of the most desire platforms for storytellers. And I feel we're doing a pretty good job of that. He highlighted Coda, which of course won the Oscar for Best Picture and I think was extraordinary. He highlighted the success of ted Lasso. You know, you know, certainly not as big a bet on on on streaming as as

Netflix has made um on streaming. But Tom, what do you make of the fact that this is an area that they're going to continue to invest in. They're coming from behind here. They don't have to prove themselves in the way Netflix is the is the player to really knock off on this on streaming right now, and we're starting to see that happen. Apple is a much smaller player there they are, they're coming from behind, and it's

all upside to them. It's one of many businesses. This is a very law overall percentage when you think about where they get their revenue from. It's almost like gravy for them in some ways, and they're not betting the farm on streaming. They are investing in great shows. We're all waiting for the next season of ted Lasso, but

it's not the centerpiece of their of their strategy. I'm very curious to hear on the call any more detail they can give us about their user numbers, the time being spent, and are they getting any of the subscribers who are maybe not spending as much time on Netflix right now? And just on the supply chain. I want to add on something Julie said, think about where China

is the lockdowns. Are the parts of China that are that Apple is really dependent on, are not the parts of China that are really most severely hurt right now. I was very surprised at how upbeat Tim Cook was about the supply chain issue, how much better it's getting. The question is if the lockdown spread much more significantly throughout China than what happens top All right, we'll be

listening for all of that on the call. Tom Giles, our executive editor, thank you as well as juliask much more to come we're gonna be talking about Amazon falling after less than stellar results. Break down all of that, including what role inflation and the supply chain is playing in the miss That is next. This is Bloomberg, Amazon tumbling after a less than stellar earnings report, including a loss in the first quarter and projected loss in the

second quarter. I'm joined now by Melissa Burdic, president and co founder of pack few, and of course a former Amazon employee. Melissa, what's your takeaway here, especially given the strong numbers from Apple. I know that's a pretty crazy but like the gentleman said, the bore and really is apples and oranges. Um. You know, this quarter people return

to stores. There's also more competition in e commerce. There's more sites people are shopping at in addition to going to school, is Walmart and Sapart, Target, They all have a target on Amazon's back, and they're they're getting better. Another thing too, is that you know the supply chain georages,

of course everyone knew about. Brands are also taking a lot of cost increases and spending some time negotiating with Amazon trying to get those costs increases through, and sometimes they stop shipping during that time as they were doing that negotiation, and then the other thing that also happened. You know, Amazon did increase crime rate from one nineteen

a month to one thirty nine. In terms of their membership feed and we do you see the subscription revenue was slightly higher eight point four billion last quarter or eight point one billion this quarter. But that's definitely something to watch. So, you know, what about the supply chain issues we're seeing Apple, for example, navigating you know, ongoing supply issues quite well. You know, what is it that

Amazon needs to do? And you know, if it's Apples two oranges, how are Amazon supply issues different from what a company like Apple is facing. It's just so different because Amazon relies on merchants, you know, third party merchants and brands versus Apple has whole control over just what they're selling. So especially with the lockdown in China where there's zero tolerance of COVID sellers, you know, there's no manufacturing during that time frame, so sellers are not able

to get their goods. The Amazon is just reliant on you know, their party marketplace and retailers or i'm sorry, brands that are reliant on the manufacturing supply chains. It's it's really Amazon in the marketplace that is trying to broker all these things, and it's the brands and the third party sellers that are really having struggles and challenges there. Meantime, of course, we're seeing wage inflation, rising gas prices. You know, how is this all going to impact consumer spending, you know,

which is like the bread and butter of Amazon dot Com. Yeah, I agree, And one one thing, just to correct the last gentleman did say that Amazon implemented a fuel searcharts. It actually goes into effect at the end of April, UM, so in a couple of days from now, actually think today. So I don't think that impacted too much yet. But I mean, the reality is is that prices are going up, costs are going up, so um, there will be some slowing,

but there are some bright spots, you know. One of the things that people are just point about with Q two that also had some you know, poor guidance, and I think the market light but Prime Day is always a shining star, and that's actually going to be in Q three this year, and so I do think that customers are going to be looking for deals and Amazon has the capacity they've built up the supply chain. They're going to be having a huge Q three this uh

this year with Prime Day. Let's talk a little bit about about streaming because Amazon also has a bet here and it impacts potentially prime subscription. We we saw what happened with Netflix. We just heard Apple CEO Tim Cook telling me they're still very bullish on Apple TV plus. You know, this is a big area of ending for all of these companies. Should Amazon continue to be pouring money into this and how does it impact the bottom line.

I'm super positive on Amazon streaming opportunity. They just bought MGM that closed last month, so that gives them access to senting tholls and TV shows and four thousand films. They're gonna have the most expensive show this this fall, which sounds pretty cool with the Lord the Rings, and then they're also talking about bring an NFL game to Black Friday. What's beautiful about Amazon streaming opportunity is also their ad revenue that they can get from all these shows.

This is premium inventory that they can put through their advertising network, UM thirty one billion dollars last year and uh so that's that's a really great opportunity for them. But also speaking about advertising. That also was a slight

miss for them this quarter as well. Um, it missed expectations, but it kind of goes back to you know, brands can't advertise what they don't have, so supply chain also impacted advertising, So UM, I don't really saw that our business all right, Patty's Melissa Verdick, thank you as always for your analysis. There will continue to follow the Amazon call as well. Onto more earnings now, and let's take

a look at Twitter revenue missing analyst estimates. And this one of the last earnings reports before Elon Musk plans to take over the company. We're seeing a slowdown in advertising. Musk has signal he doesn't necessarily want Twitter to rely on ads and might prefer a subscription model. Could this accelerate that plan? Let's ask our next guest, Scott Kessler, global head of technology at Third Bridge, how do you think Elon Musk is looking at these ad results? Scott Um,

thanks a lot, Emily. I think honestly, they're largely in line. I think when you see uh the m d AU number go up so significantly, I think there are positives to take from the results, and I think he's probably also reading a lot of the tweets about people suddenly gaining a lot more followers, um, and they're obviously constructive on that. So let's talk a little bit about then the broader ad industry. Clearly we're seeing digital ads take a toll. We saw it at Metta, we saw it

at Snap. You know, how do you expect this to play out over the course of the year if the macro environment doesn't significantly change. Yeah. Well, what's interesting is historically, if you had kind of uh um, challenging economic backdrop, it would seem like those areas, including historically digital advertising would actually perform better because the thought is that the shift over from say, legacy or traditional advertising to digital

advertising would accelerate given that more challenging backdrop. Now is a different time though, however, because of the impact, among other things, of id f A, which had a negative impact on a lot of digital and social media advertising companies, and it's one of the primary reasons that we've seen meta platforms struggle so mightily, and people cheered, uh when the company generated seven percent revenue growth. So, uh, let's talk a little bit about this Elon deal. How bullish

are you on this? You know, clearly Twitter has a lot of potential I think everyone can agree that has not necessarily been realized from a business perspective, from a user's perspective, from uh an influenced perspective, but you know, still very controversial whether or not he's going to be

good for this platform. Yeah. I mean, look, I think one of the things that everyone can agree on, and there's a lot of different opinions on this proposed transaction, is that if Elon Musk ends up buying Twitter, a lot of change is going to come to the company and to the platform. Now, whether those changes are going to be for the good, for the bad, or otherwise

remains to be seen. But a lot of us who have been using Twitter for a lot of time would acknowledge that it's largely the same platform that it was ten years ago, and that and of itself, I think speaks to some of the issues that people have around Twitter. The edit button, for example, that Musk has highlighted in

some of his tweets. That being said, however, I think the reality is that I look at it as you know, a pendulum, right that sits between Twitter's focus historically on health and safety, at least over the last couple of years and Musk's indicated focus on free speech, we've seen that pendulum swing quite far to health and safety. Musk obviously wants to shift it more uh to free speech. What that will do, in effect is render less relevant

or maybe irrelevant. The notion of content moderation, which Twitter and a lot of money on, has a lot of employees doing, and that's clearly an area that Musk would seemingly look to make cuts to help not only fulfill his free speech goal, but also to help preserve and grow free cash flow. The Information is reporting that the FTC has opened an inquiry into how Musk disclosed his Twitter steak and whether or not he followed the rules there.

What do you make of this and potential regulatory headwinds to this deal? Yeah, Look, I think a lot of people have been looking for potential hold ups in this transaction, especially legal and regulatory ones. Um. Look, I don't know the specifics of the inquiry, what exactly they're focused on. Um. Musk is no stranger to a lot of these types of issues. Um, but he's been able to push through them. I can't imagine that those types of issues are going

to hold up this deal. I think at the end of the day, a this really comes down to does Elon Musk fall through honest financing and consummate the transaction and what happens next? And I frankly think there are a lot of questions about the financing and the fall through, but in terms of legal and regulatory I don't expect that to be the primary impediment for this deal going through. All right, Scott Kessler, Third Bridge, Global head of Technology, thanks so much for joining us. All of us very

anxious to see how these how this deal plays out. Meantime, Snap is trying to make it even easier to take a selfie. The company just unveiled this yellow, square shaped flying camera drone called Pixie. Snap c e O Evan Spiegel said the inspiration for the Pixie was, quote, what would feel like if Tinkerbell were your personal photographer? Well, now you can have that personal photographer for two dollars.

The Pixie is available for pre order only in the US and France and is expected to begin shipping next month. Welcome back to Bloomberg Technology and Emily Chang in San Francisco. Anyone concerned about falling chip demand post pandemic need look no further than qual Calm for reassurance, posting better than expected earnings and a strong sales forecast. This thanks in large part to see On CEO Christiano Almond's plan to diversify the company beyond smartphones. Aumon joins me. Now, Cristiano,

great to have you back with us. You know you ended the call by thanking analysts for all the questions about phones, but reminded them that qual Calm is so much more than a communications chip company. Now, how do you see these earnings proving that out look? Uh? First of all, great talking to you know, Emily. Uh. And strategy is working for the companies. It's it's really working.

We we are now growing across the whole business in a number of different in Mark gets hands, It's yes, it's a great story, will continue to be a great story. I think we're doing well there. Um, I guess like no good did go to goes unpunished as by doing well and hance it. So I think we're we get all those questions, but the reality is the IoT growth has been incredible. We grew sixty um and until we added three billion dollars to our design when pipeline within

the quarter. So the company is truly changing from what is perceived to be a communication company for the handsOn market. It's really a connected processor company for the intelligent edge. And uh, you know, hopefully that message came across. You've gotten so many questions over the years about your relationship with Apple, including from yours truly, but the call focused a lot on Samsung. Is it better for Qualcom to have Samsung as a customer a successful customer, as opposed

to Apple? And if so, why, Well, that's a very good question, and I think it goes to the heart of our mobile strategy is so, here's the reason we're doing so well enhance its and we had the outline and the call exactually one of the fastest growing uh in a revenue for US and and silicon content and and of course earnings is on the processor side. So we we put the following strategy in place. We want

to be synonymous with premium and high tier Android. We when when you think about a flagship Android, you think Snapdragon and snap Dragon eight. It's really becoming the platform of choice across every o EM, from Samsung to Vivo, OPO, shall me Huawei honor UH to build their phones UH

in the flagship category. And what's happening go back to your question when we sell, When we sell a snap Dragon eight series into a ALEXS twenty two from a revenue UH and in an earning standpoint, is probably equivalent of selling modems to five iPhones. So it's a great trade.

So and especially when you look at the decision made by Samsung as a result of the strategy of being very focused, and the snap Dragon been winning in all categories, the best oft smartphone camera in the ward, the highest, the XO mark scores the fastest AI, lowest power with with a graphics and CPU performance. That is driving the shift from four percent to seventy. So Galaxys one, we're

now we're seventy plus. You know, you've been pretty optimistic about supply issues easing through the end of the year. And I just got off a call with Apple CEO Tim Cook, and here's what he told me about supply

at least over the last quarter. Said, we did experience significant can we it experienced supply constraints, but they were significantly lower than what we experienced in the December quarter, and they were all silicon shorts related, so that the industry wide issue with silicon that affected us on several of our products. UM. I didn't get a lot of color on supply issues in the current quarter, but you know, how would you square that with what you're seeing. Look,

it's very consistent what what he said. If you remember we said that in this year of two thou two we expect supply to improve dramatically. That it is true. We said that the second half who have a significant improvements in supply. That is happening. But having said that, would still have more demandant supply. We are now not

the main constraint or supply constraint. And especially for the company which is now part of the digital transformation trans they've seen enterprise and that's driving a lot of growth in our IoT business. UM in addition to all to enhance its now you gave a huge target for revenue coming from automotive, sixteen billion dollars, and I'm curious how quickly we get to that massive total given where the business is today, which is it's growing, but it's still

relatively small. Yeah. No, it's the way to the way to think about automotive, and I think that's the reason we provide that metric off the design winds UH that we have. We're winning the future, UH, you know, silicon in in the automobile industry, we're with twenty six brands. Now we see traction with our Snapdragon digital chassis. We're winning across digital cockpit, you know, connectivity with the cloud

and now a death and autonomy. And the way to think about it is when we talk about a sixteen billion dollars design wing pipeline, you'll think about cars that are gonna be launching in the twenty four, twenty something, twenty and twenty four all the way to twenty five time frame, and then they stay in production for uh five to six years. So it's it's it's almost a contracted backlog. And we just added three billion to the metric used to be thirteen billion dollars. In the quarter

we had three billion more UH. And one of the biggest components of that is our contract with still luntis now Qualcom. As you've said, you want Qualcom to be judged by well by how well it transforms to a company far beyond phones, and we have seen Qualcom take a little bit of a beating um along with other chip companies, though of course the shares sword today. Is there something that you think investors still aren't seeing that

you want them to see in terms of this broader transition? Oh? Absolutely, you know. The way, the way I will answer your question is investors have the tendency to just think about the handsets and just because we're doing well and hands it's we did we to on the market that was flat to to a negative bias and we grew in the year the border. But uh, the reality is there is a broader story with Qualcom, which is our technology is going to power those billions of devices that are

really enabling the cloud economy. And we see that happening with the growth rates that we have in our IoT business, uh across consumer uh the as networking in enterprise. And just as I was watching uh you right before you made a comment about the new A drone of Snap that's our chip. That's one of our many IoT categories that we have. All right, Well, it's great when we can hear about your customers that I know for a long time you haven't been able to talk about your customers.

So thanks for some of the specifics there. Calcom CEO Cristiano Alman appreciate it. Meantime, Microsoft block Ster deal for Activision Blizzard just got a bit closer to reality after a shareholder vote. So why is Wall Street betting that the merger won't actually happen. Bloomberg's Broody Ford joins US now with the latest, Sobrity, give us the broader context here. There's there was a shareholder vote. Um, the deal seems to be moving forward, but still investors are skeptical. Yeah, exactly,

so the shareholders voted to advance the deal today. It's an important step that had to happen. Um, but all together not too surprising. So all eyes now are on what the regulators do. I mean, this deal has a little over a year from now to close, and it has to clear through the US, the EU, China, Um, I think Brad Smith or Microsoft's at a seventeen countries

that has to pass through. But I mean really, all eyes are on the US competition enforces here and whether or not they will move to try to block this deal on anti competitive grounds. So what's the likelihood that happens? Yeah, well, Ill Street saying that in there in the metric, it is three times more likely for a Microsoft Activision deal to fall apart than Twitter. UM. So right now, let's say you own Activision stock, you will get paid ninety

if this deal closes. Right now, it's trading in about the mid seventies, meaning that you know, people are seeing a decent chance that this does not go as planned. UM. And that could be either that the FTC sues and successfully blocks it in court, or that you know, it gets tied up in litigation so long that other reasons can creep in that can make the deal fall apart. So what are the odds What are the odds of deal falls apart? Well, it's really hard to say, right.

I mean, so the for decades mergers in the US were very much just kind of allowed to go through is pretty hands off. But agency leaders right now have said that big tech companies should not be allowed to grow via acquisition. UM. Microsoft has very good reputation should in DC, It's escaped a lot of the tech lash. That being said, you know, it still is the number

two company in the country. So the idea is that they are really looking for a way to get their hands dirty and maybe have some new court precedents about big tech mergers. And this could be the case, why they or not it works. You know, we'll see, but a lot of people think it could happen. All right, bloomberks broty for it, Thank you, thanks much. Coming up robin Hood dirting is also out and the online brokerage continually.

It's for into crypto listing more cryptocurrencies like Salana. Our Crypto report coming up next with that conference in the Bahamas still underway. Is the need of the community dictates the development of the protocol because the protocol is owned by the community. A lot of the work that Salona Labs does and a lot of the work the Salanta Foundation funds is around building primitives that are open source, that can be taken by anyone and turned into amazing

products built on the Salana blockchain. It time for our crypto report now and robin Hood just reporting their results that as it aims to become a bigger player in crypto. Here to break it all down, Bloomberg's own Annie Massa, Annie,

what are the headline takeaways from these results? This was a really difficult quarter for robin Hood, and it was always going to be a stark comparison between this first quarter and last first quarter when we saw the huge run up in game Stop and other memestocks, but it was worse than analysts anticipated. We saw losses across all kinds of product categories, transaction revenue sliding, and revenue and

earnings both missing Wall Streets estimates. So let's talk about how they're trying to grow their crypto play and influence in the crypto market as the company you know, faces some you know, big challenges up ahead. I mean they're going through some pretty big job cuts and the stack

way down. That's right. The stock has really plummeted since the I p O. The central struggle that robin Hood is dealing with right now is this question of whether it can actually get users involved in more than trading on its platform. And in the meantime, it's trying to keep up with with investors and go where they're going. So on the crypto side, for instance, it's introduced some new tokens, including the long anticipated Shiba knew coin, and

that was a recent development. So so robin hood is introducing some new products to trade and at the same time trying to grow the types of products that it offers to investors in areas like retirement accounts. It added crypto wallets, So it's offering all these new products as well. So what are you looking for here next? How do you expect robin Hood to navigate these challenges? You know, well Street Darling often very controverse deal. But but now a year into being a public company, a lot of

big kind of existential issues. It is an existential issue, and I think that's something investors will be watching closely whether robin Hood can deliver on this message that it has, that it can expand with its users, grow with its users, and and touch more parts of their financial lives. So far, transaction revenues are still the core driver of revenues at this company, and it remains to be seen whether customers will go to robin Hood for other types of products

as well. They certainly are going to trade, but the issue that robin Hood's facing is that trading activity is coming way down from where it was during the pandemic. How much do you think that has to do with the macro environment, I mean inflation, rising gas prices, not a lot of not a lot of money to be spending right now on discretionary items like new equities and crypto. That's a great point that was something that the management addressed in both the earnings call and a call with quarters.

They said, listen, robin Hood has been a company that's mostly operated in an environment for much of its history where inflation has been low, interest rates have been low, and now we're starting to see inflation, uh, come way back and the Federal Reserve trying to curb that. So the issue for robin Hood is can it weather that storm if people do lose interest in putting their discretionary income towards trading. All right, we'll continue to follow that story.

Blue marx Any Massa, who covers robin Hood for us. Thank you. Let's wrap up now by taking another look at Apple's results. Dan Ives of web Bush Securities here, Dan, you've been listening in on the call. What are your what are your headline takeaways? Obviously an impressive quarter Apple weathering supply shortages, weathering inflation with some record results. Yeah. Look, I didn't get to tell two cities. Demand story remains robust. I think demand out stripping supply by about ten million

iPhone units. But he talked about supply chain. That's the big part of the call. It looks like four to eight billion terms of a headwind book. I believe the street the knee jerk is down in terms of the stock, but I believe what they're gonna start to look on the other side of it's in a normalized an environment. That's really really the streets focused on, even though these

supply chain issues in China clearly ahead wind. I spoke to Apple CEO Tim Cook, and he talked about the supply shortages, double down on the fact that this was a record quarter and that they grew in every category except for iPad, where they had the most significant supply constraints. He explained they really had to do with silicon. And we're hearing uh Lucamya Street, the CFO of Apple, double

down on that on the call right now. Um, and these are silicon constraints they're saying that go beyond the shutdowns in China. How do you expect Apple to continue to navigate that in an ongoing you know, COVID lockdown, You know, no doubt with China, it's on two parts, right, demand as well as supply. Key part of the China story. Look, if it's going to happen read happened the June quarter, because ultimately this is all the build up to iPhone fourteen,

which will be in September. And if you look at Apple, if you look at the demand trends that we're seeing, and it's important demands not softened. So I also believe they'll ultimately be able to push the price increases that we see over the coming called six months on the next iPhone three two consumers. And that's why it's one The supply chain issues are well known, but the demand stories what investors are really looking at to see if there's any cracks from the armor, and Emily, we're not

seeing them. What is't you a huge reaction in the stock And I wonder why that is because it certainly seems like App well is uh fairly well insulated from the macro economic issues that other tech companies are facing. Obviously we're seeing, you know, a big hit to digital advertising which not only affected Alphabet on YouTube, but Meta and Twitter and also impact on consumer demand. Given these

sluggish results from Amazon, you know, is Apple different? I think there are different and I think what we're seeing in tact, there's a narrative that's emerging. Enterprise is strong. Microsoft, I think cybersecurity cloud even at the Google parton of cloud, and so has Amazon. And you look at Apple more tetarn like because this hand up demand cycle for iPhone, which I think continues into next year, is underestimated, along

with on the services side, services beat the whisper. So that's really the story that's emerging here that Apple continues despite everything. We're seeing demand now strip supply Now, Dan, we're getting some new details on Elon Musk's pitch when he when he made a pitch to buy Twitter, that his pitch featured job cuts and other ways to make money. I mean certainly hinted at, you know, wanting to potentially move away from advertising, being more interested in a subscription model.

But his pitch does focus on, you know, turning it into a more profitable business, boosting cash flow, monetizing the platform. He also brought up his his track record at Tesla and spacek Space access proofs his success. What do you make of that, Okay, I think from a business model perspective, I believe it goes to a paid subscription model. I think they'll have a free piece, but ultimately that's probably

a key part of the strategy going forward. And in terms of some of the job cuts with some of the cost cutting. I mean, look, this is essentially whoeveraged buy out the only given to averaging Testla shares to do it. So it's going to create some more uncertainty going forward. It's still a long time till this closes. But that's why right now for Musk, the easy part relatively with buying Twitter, the hard part is going to be fixing it. Can you do it? Do you think

you Musk can do it? Look, I believe it's another It's a whole another animal than a Testa, a space X, not technology. We're talking on social media. It's been an uphill battle for the last decade and I continue to believe.

I think Tessa Sheryld has believe this is that this isn't going to be a hrculean R challenge from Musk, and I think that's why you're seeing the overhang on Tesla shares because you essentially leverage the position in Testa to buy Twitter and ultimately test A share olders that are stealing the brunt of this, you know, soap opera playing out soap opera and need Dan Ives of wed Bush Securities, Thanks so much for your insights. There will

continue to watch what happens with Twitter. Of course, we'll be continuing to follow along the latest on Apple and Amazon results. And that does it for this edition of Bloomberg Technology. Before we go, I just want to say a special goodbye to a very special person on our Bloomberg team, Mallory Abelhausen, who has been here running the show on the floor of Bloomberg Technology for ten years. Ten years, so almost as long as I have. She is moving on to her next adventure, moving to New York,

Bloomberg in New York. She's not leaving the Bloomberg family. And we're so so grateful for all of the time you have spent with us, and the energy and love and heart that you bring to this show and helping me us put a show on from my basement for eighteen months in a pandemic um. You will be missed and we wish you love I love you too. All Right, that does it for the show. We'll be back tomorrow. I'm Emily checking in San Francisco. This is Bloomberg Op