Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is a live from coast to coast with Caroline Hide.
In New York and Eva Low in San Francisco.
This is Bloomberg Tech. Coming up, Apple and Amazon end this week. In tech earnings, we'll discuss Apple's global growth come.
Back, plus Reddit surges on a record profit we discussed with the company's COO Gen Wong, and we'll.
Be joined by Roadblock CEO Dave Bazooski to break down the company's earnings and it's advertising pushed later this hour.
But let's get to the macro perspective first, ed because it's pretty ugly out there. In fact, we're having the worst day and announst that one hundred since April, the worst week since May. And that's as we get that so called resilient jobs market with some cracks showing and some revisions for previous months. When it comes to the
labor force, that bagstown stocks sends bonds higher. But I'm also looking well the implications of tariffs when we are fifteen point two percent general average now for tariffs on goods coming into the United States. There's karity there, but is there long term negotiation still to come. What does it mean for tech stocks? More broadly, let's get to Klee lines, just the breakdown Klee of what we learned on where countries are standing right now.
Well, Caroline, there's many different layers to this. The global baseline minimum teriff rate will stay at ten percent, despite some previous suggestions from the President that it could go higher. But indeed the teriff rates will go higher for countries that have larger trade surpluses with the United States, from fifteen percent to well beyond that for some countries who were able to secure deals with the United States an advancer,
of course, had already received letters from the President. That includes the likes of Canada, for example, which will have a thirty five percent tariff on it's goods, though there is a carve out for those that are compliant with the USMCA Trade Agreement, or a country like Switzerland, which
will see a thirty nine percent rate in aggregate. According to our estimates here at Bloomberg e if these tariffs go into effect and stick, it will take the average tariff rate for the United States up to fifteen point two percent from the current thirteen point three percent, which brings us back to levels last scene in the World War two era, and it's well above the little more than two percent rate on average that we saw before President Trump took office. That said, it is still an if.
According to the orders that the President signed last night, these duties will not begin to be collected until August seventh, so about a week to go here.
That does leave some.
Wiggle room for countries to either continue negotiations, try to reach deal, or maybe get an extension, like we saw with Mexico yesterday, which was able to secure a ninety day extension of their current agreement. Also, we need to consider that China is still a question mark that August
twelfth deadline is looming. The President has not signed off yet on an extension for the trade detente between those two countries, and he also had some measures that do seem aim specifically at China in what he signed last night, with a forty percent tariff that is going to be applied to so called transshipped goods, though it's not exactly clear how those rulings will be made or how that.
Will be enforced.
Also unclear is what sectoral terraces could still come into the picture, as they're still ongoing Section two thirty two investigations into things like pharmaceuticals and semiconductors, and we're awaiting those outcomes as well.
Tailey lines with a breakdown. Thank you so much. Look, let's get to your micro picture because there's trade, but ed, you're looking at earnings.
Yeah, and earnings is a big story in the world of technology this morning. Amazon is an AI story, and it's a cloud story. Look at the drop on the stock significant. The concern is the outlook for operating income. So much revenue comes from Amazon dot Com, but the majority of operating income from AWUS, and the outlook seen
as weak or conservative. But AWS in the period Gone grew seventeen percent in a quarter where Microsoft Azure grew thirty nine percent and a quarter where Google Cloud Platform gained some territory.
There's pressure there.
Apple beat across every metric in the June quarter GONE and told us in the September quarter mid to high single digit percentage growth.
But everyone this.
Morning carrow asking about pull in or pull forward, And what Apple said was in April in the United States, one percentage point of growth was people front running tariffs, but they grew ten percentage points do we believe them. The market's down one point six percent.
Let's get more analysis with an investor. Tony One's with us is t row Price Science and Technology Fund portfolio manager exposure to Apple. What do you think in terms of Apple's seeming resilience and growth in China.
Yeah, I think that their you know, product is still in demand, and they did some pricing adjustments to make it more attractive to fitting the subsidies, and at the end of the day, I think it's still a really high quality of product and brand. I think that what matters going forward is their product innovation around AI and improving series.
You know.
I think that you had a period where Huawei came back and took share back, and it was a competitive environment made Apple kind of adjust a little bit to bring more value.
But I think it's encouraging that things are getting better in China.
They're growing again, Tony, I want you to help me with the map here a little bit. So April largely one percentage point of growth in the Gune quarter was pull in pull forward from tariffs, and then Apple told us that they would grow mid to high single digits in the September quarter. That would indicate that there isn't some kind of tariff front running here, that Apple's just growing because it's growing. Do you buy that?
Yeah, well, I think that, you know, it's kind of hard to tell, to be honest.
I think that there was a period when you were rushing to Apple stores to buy some iPhones before the terrorists, but I feel like that quickly subsided and you know, that was resolved relatively in short order. And so I think that what matters here is the forward look. You know, as investors, you're probably looking more towards what they do
with the next iPhone cycle. Fold the ball in addition, like services was really strong, and so there was a fear that what happens with uh, you know, Google search as.
Well as kind of the the app store ruling where people are circumventing the app store.
It seems like that's like actually been okay, and so going forward, I think that it's less about like was there a little pull in or by more of the iPhone cycle coming coming up that people aren't focused on.
So Tony, when does the real pivot point come? When is it that you have confidence to add exposure and feel that Tim Cook and the team are on top of generative AI, of the opportunity at hand of innovation.
Look, I think Tim Cook and the team they're really talented and their world's class manufacturers and you know, their product leadership.
You'll be built that over decades.
And so I don't think you can count about in terms of where the stock at has been. It's like the market break considerably in a market that's been super beta fuel and risk taking. And so you know, if the market turned like Apple, I think is a safe table. And then if you look at kind of the momentum they're building like things, things are probably going to get better over the next twelve months. And I do think that,
you know, they can do a lot within AI. They're probably you know, not rushing to commit to anyone one partner. You know, they own the ecosystem and so to me, like, as long as the iPhone is still the main, you know, channel for AI, I think that's that's really important.
Talent wasn't mentioned on the call, but the final question was about M and A in the context of AI and what Tim Cook said, And I know because I put it in the top live blog and then I screenshotted it. We are very open to m and a Tim Cook two fifty seven pm Pacific time, Thursday, July first. Is that a starter gun or signal particularly to investment bankers or do you expect Apple to stay sort of muted in disciplined on that front, I think.
The Apple is very muted, and I always say muted, but they're very disciplined, and I think that they have like a very very strong focused in what matters in their direction. I mean, for a long period of time, you can put all their products on one table and to be really great at what they do. And so I don't think they're going to be muted. I think they're going to be disciplined and focused, and they have made acquisitions that can really I think, plug into the ecosystem enhance their talent.
I don't think they're going to go to a really.
Big, splashy acquisition, but if you take a step back, they're generating a ton of capital and there's a lot of potential for improvement.
And via em and a Telly one on the tray price. Great to have you back on Bloomberg Tech. Thank you very much. Let's stick with earnings and turn in part to Amazon.
I'm actually going to.
Keep going with Apple as well with Laura Martin, who covers the broad gamut of tech. But and listened you were listening there to Tony Wright. I just wondered if you had any response difference of opinion on any of the ground that we covered.
Yes, I would be much more negative.
I think the Apple stock cannot work without an Apple iPhone replacement cycle. And Tim Cook said on the call that they have twenty AI jenerative AI capabilities involved in its current iPhone. But next year we're going to get really the Apple intelligence step up.
So that's two years after.
I originally promised it, which means we're not going to get an iPhone replacement cycle this year in September. It would be next year at the earliest, which means I don't think the stock can work. I don't think it can outperform. Meanwhile, when you listen to Alphabet, they've got Google Gemini, and they are incorporating jenerative AI features in every one of their products, including Android, which is the
primary competitor here. So you and I aren't incentive to go out and replace our iPhones, which means our iPhones are getting another year older, another a year older, and at some point, if the one of the Android version runs ahead with some cool feature that all of us want to try or can't live without, we are more likely to shake loose from that iOS ecosystem because they aren't showing us anything that keeps us there as these iPhones age and we want to replace our iPhones with something new.
Meanwhile, don't She's doing a lot for Sansung foldable phones and plenty of others on the market right now. I just pivot therefore to Amazon, which does have hardware. But look, we're looking at the growth story of cloud right now. In AWS, seventy percent was exactly where Amnis wanted it to be, but did just pale into comparison compared to where Azure was and where Google is in terms of cloud.
Yeah, so what they said was that there was real margin pressure here, right. Margins went to thirty two percent, down from thirty nine percent last quarter, and like Google's cloud margins were through the roof, so were Microsoft.
So when you have they're all capacity constraints.
So we would have forgiven Amazon the seventeen percent growth rate and revenue if their margins had stayed at that very high sort of forty percent level, because they're out of capacity, so they should be like charging a lot for anybody that uses demand in their cloud.
But they didn't.
They were under margin pressure, so I think people didn't like that. I think that My opinion is they're losing business because their competitors are price competing and taking away clients. You know, Apple's still the biggest. There's sixty five percent bigger in cloud than the next closest guy they in the business. And he made the point that eighty five percent of companies are still on physical servers on premise and all of those companies need to move to the cloud.
And Amazon it's the biggest. So I think this is a short term problem. But boy is the market mad. I mean, investors are mad about these numbers coming out of Amazon, but.
They're quite often mad at Amazon because Amazon is willing to say sorry, profit tomorrow, profit the next quarter, for now, I invest in my business. Did he sound bullish enough on the general to ay opach opportunity, because goodness, they're intertwining it left, right and center as well.
You know, maybe I think, look, I think this is the right guy in the seat right.
This guy is the one who started founded cloud.
And did extent Cloud is either under siege or doing something wrong, or Wall Street's just mad.
This is the guy to fix it like this isn't a CEO from a different business, this is his core business.
I think Wall Street's a little mad that they're spending money on Kuyper, which is not making revenue. Alexa plus ten years, we still don't have a dollar of revenue, but a ton of expenses, and they're doing same day delivery in urban centers, all of which feels.
Like a lot of capital to spend where you're a price.
Can I ask you, Andy Jesse said, quote very early days in artificial intelligence across all businesses, very quickly. Do we have any better understanding of Amazon's AI story than we do Apples, which gets, of course scrutinized a lot.
Yes, much better. They're incorporate.
They have a very clear AI strategy w is to host everybody else's AI cloud on theirs. Remember Google's proprietary, Microsoft proprietary. Amazon's strategy is to host all large language models.
It just wants the cloud fees.
Laura Martin Kimming it shortened sweeten to the point we so appreciate stay well, have the good rest of the weekend. Meanwhile, coming up we stick with tech earnings one that actually Laura Covers has read it. The COO Jen Wong was fair to discuss explosive sales.
Both as a bluebo.
Tech shares have Reddit absolutely surging today, up more than twenty percent, biggest jump since the first week of April. The company reported its most profitable quarter today and projected sales for the third quarter that were above and this estimates.
Reddit COO Gen Wong joins.
Us now for more and it's like one of those quarters where should we just start with the basics. Advertising was really strong in the cord of gone. Why was it so strong? Which geographies were good? What are you doing that makes Reddit so attractive relative to other platforms?
And thanks for having me.
It was a really strong quarter across the board for Reddit, and in terms of revenue, we saw broad based strength across all the verticals. We saw geographic strength in the US and in the rest of world, growing over seventy percent in both geographies, we.
Saw users grow twenty one percent.
Obviously, advertising revenue group by eighty four percent year year, which is truly differentiated. We grew active advertising by fifty percent year every year and you can see across the funnel both our lower funnel convergent objective plus brand, we're both big contributors to the results in Q two.
So again, broad based strength in.
The it's surprised and investors a surprised analysts.
Did any of it surprise you, Jen, any verticals that surprised you, any geographies that surprised you.
I think this is.
A continuation and an output of our investments.
We feel really good about our strategy and our roadmap.
We've been investing in our capabilities to make every impression more valuable for marketers over the last couple of years, working on that lower funnel objective, and I think now we're seeing the benefits of all the value we're.
Delivering to our customers.
The team's been executing really well. We've been making investments and expanding our sales team across verticals, across geographies that's coming in and supporting the broad based strength. So we feel really good about the investments we've made. I think our work is working.
I just typed who is Jen Wong into Reddit answers, and it says Genwong is a prominent figure in the world of tech and business and COO of Reddit, but I find it an interesting tool. Rights supposed to be human led answers, but might we see ads place there? You know, people talk about this a lot. How we monetize on that, It's.
A great question, I think Before we get to monetization, which I think is a huge opportunity for for Reddit, in that space and the area of search, I think we have an opportunity to build a very distinctive destination search experience. Reddit is where people come for real perspectives from real people, not looking for just the summary, but looking for what the context around. You know, why did you think that this was the best running shoe? Because
you live in heavy trails a rocky area. You know, you're a long distance run or a short distance run.
Like all those details of.
Real human experience are brought to life in Reddit answers and Reddit Search.
What we're doing is bringing together this capability.
In Reddit Answers, which is an LM on top of the incredible conversation on Reddit, and integrating that with core Reddit search so that it becomes a more fulfomed experience. And then as we continue to grow the use of that destination search.
I think monetization follows.
I mean, it's a lot of those queries are incredibly just naturally commercial nature, or it's people trying to make decisions and allocate resources and buy things, you know, to that fit their lives.
Yeah, I mean monetization has been something you've done well with other deals for licensing your own data to generative AI large language models. But Jen, there's a little bit of beef going on, perhaps with one with Anthropic. Can you give us any update as to what's happening with your relationships and further content licensing deals.
Yeah, I mean, I won't comment on litigation, but I will talk about data licensing. I mean, you know, we these were our first commercial relationships. We're a year a year and a half in. I think we've learned a lot and we're still learning. I think we're open to conversation. I think what we're learning is that we and frankly everyone can see reddits contribution to these lms, how often Reddit is cited, how important Reddit is for people to get the perspective that they're looking for.
And when we see that, you.
Know, I think it reveals that the fact that Reddit, I think has never felt more essential to the Internet and to helping people.
I think what we get.
Excited about is when we look at this is the opportunity for ourselves, the opportunity for us to build products around the decades of conversation on Reddit, Reddit answers and search is one area obviously growing those communities.
In our core product. So we get really excited about that.
And you know, I think overall the value of Reddit and conversation in this world of AI is going up.
You know, a lot of your job is flying around the world. International markets just very quickly, how start going getting dollars from abroad and very quickly also languages as well.
Yeah, I mean international is incredibly important to us. It's about twenty percent of our revenue, and international revenue from advertising grew over seventy percent in the quarter, so it's been a growth driver for us. We're particularly active in Europe and Amea. We're seeing really nice growth in our target countries where we're applying AI for machine translation to have global conversations in different languages so that people that
don't have language friction. We're also growing local communities, which we're excited about doing some partnerships and sports and entertainment that are really simulating the growth of local communities like telenovelas in Brazil and football in Germany. And that user growth that we're supporting then obviously creates a monetization opportunity.
Jen Wog, I've read it. It's wonderful to have time with you. Thank you very much. Indeed, now coming up Pigma shares, Actually are they managing to rise even on day two after that monumental launch. We'll talk about the IPOs big winners and what's next.
This is blue Bag tech.
Shares.
A Figma sold a whopping two hundred and fifteen percent on their first day of training. That's the largest first day pot for a US trading company, raising more than a billion in at least three decades. That's according to Bloomberg Data. So is this positive, this strength or is that money left on the table for the design software maker.
Let's get to Katie Ruth for her analysis. We're actually still clinging onto some gains in a downmarket to Dave, and Katie feels the demand is so insatiable her three.
Clearly the window is open for tech listings, or especially open for Pigma. Yeah, you ask a good question about the their money left on the table of these favorite debate obviously the cell side, which is primarily the company, but also the top shareholders.
He sold five percent of their stakes.
Yes, they would have I'm sure loved to sell for hire, and then you know they could have raised more money. But I think there's a real question over what time frame do you evaluate a first day pop on. If you look at twenty twenty one, a lot of those stocks eventually bottomed out.
Thinking about some of the conversations Caroline had yesterday down at the NYIC, just fantastic classic ipo stuff right, adjusted gross margin of ninety two percent. Is this just because everyone loves a high margin software name, or is there some retail trading here?
What's really happening?
Well, I think if you look at it's not just this one.
There have been several recent tech IPOs that saw big pops on the first day and in the recent trading, and so I think what you're seeing here is there's pent up demand for new tech listings.
Twenty twenty one was a blockbuster.
Year, and there was an eighteen month period where there were zero tech IPOs, and when they first started to come back, the market was a little bit skittish. But I think they've decided they want tech stocks and they want more of them.
I think that in twenty twenty five we've already picked twenty twenty four in terms of volumes, which is exciting Bloomberg Katie Ruth, thank you very much. Now coming up on Bloomberg Tech when it were joined by the Roadblock CEO David Zuki to break down the company's earnings. It's advertising push and much much more. Are just a fantastic way to end a week in big tech and big tech earnings.
Stay with us. This is Bloomberg Tech. Welcome back to Bloomberg Tech.
There's some kind of macro level economic concerns out there in the market. I'm looking at the Magnificent seven, that collection of megacap tech. Of course, within that Apple and Amazon, which is actually the biggest points drag of most indices, is an earning story. But at the same time, we covered off area in the show Carro tariffs and tariffs having an impact in different ways in some of those companies. We'll get to more of that later in the Hour
one earnings. We haven't got too yet is coinbase revenue projection missing estimates. But what I find so interesting about coinbase is that its performance is directly tied to volatility or in this case, a lack of volatility in crypto markets. But that stock drop of sixteen percent is its biggest drop since March. Very interesting, real calculation on one single name. But there are so many to get in.
There are, And let's go back to roadblocks because the gaming platform reported phenomenal booking increases more than fifty percent in the last quarter daily active US account toping one hundred and eleven million shares, So you see still trading higher after the earnings posted yesterday morning. Moeblock's CEO David and Bazuki joined us now Dave across the board. Growth daily active use is particularly the older cohort. I'm looking at hours engaged revenue bookings.
We're saying you raise your guidance.
These viral experiences grow a garden, for example, how much are they contributing to this growth?
Hey, great to be here, and we have created an essential really the conditions to grow a garden, in this case growing amazing creative new experiences on roadblocks. In addition to grow a garden, which is a cultural meme. Right now, there's five experiences on roadblocks with more than ten million daily active users, and I want to highlight in addition to that great growth we saw, we saw thirteen and up users grow daily active users sixty four percent.
Year on year.
We have a vision of ten percent of the global gaming content market running on our platform, and this really explosion of great new hits.
It supports that thesis.
I also want to highlight even without Grow a Garden, we would have reported an amazing Queue two with great year on ear growth rates.
Brook Covens there, Grow a Gardens there. Just delve into these hits that you have. How much revenue do they sort of supply to you? Can you break it out on an individual win basis?
Well, I want to highlight these hits. A lot of them have been created in the last year. In fact, four of the top five experiences were created in the last year. Part of our vision is there's an enormous headroom to innovate in the gaming space around how games are created, how people consume them, how they're social, all of this, and we believe this innovation is driving the ability for creators to make awesome new experiences.
On the platform.
You know, we're starting to see some of these hits go global want to highlight. For example, a pac DAUS grew over seventy six percent year on year, and we still have a lot of headroom. We're we're only about three percent of the global gaming market running on our platform, and our vision is to get to ten percent.
Dave, I've been able to get with your team and talk a little bit in recent months about advertising, and one of the things I think people don't necessarily understand about roadblocks is advertising is a revenue stream for you, but also for the deads that the creators themselves. But I think I'm right in saying you've never really given us a dollar figure on how it's going. Would you just update us on the ecosystem and the wins that you see for roadblocks.
We do think there's a significant advertising opportunity on the platform, and you're exactly right. All of this growth we've been sharing, you know, bookings growth of north of fifty percent in Q two was driven not by advertising, but by people spending robucks on the platform. That said, there's several categories of experiences and creators that advertising may be the best
way for them to make future revenue. Highlighting Typically our vision is advertising for older users, not for younger users, because we're already so healthy monetarily there, and we have launched video advertising on the platform.
We just in the last week open it up for more creators.
I will assure you if and when we hit ten percent of the global gaming market space, that advertising will be a key part of that top bookings line.
I kind of want to stick with the creators because I'm trying to always understand the ecosystem. So one thing that you've done is help creators get licensing deals. They might create a game, that game might be franchisable.
Why do that?
But also, like, are you kind of taking the liability on copyright and on legal and everything else that comes with a deal like that?
We aren't really And what we've seen two years ago, people might have thought, well, you're not going to have any prime sports brands on your platform, and then all of a sudden, we have, you know, NFL Universe, a partnership between the NFL and an existing developer on the
platform be extremely successful. What we've started talking about with our IP platform is the ability for great brands, whether it's for example, Stranger Things, there's Quid game from Netflix being available for creators on the platform who want to integrate the brand and really create a win win in that these brands can have a lot of people interacting
with them, it can drive engagement within them. So there's a lot of opportunity in the future to connect great brands, great ip with the creative energy of the developers on our platform.
I like that win win idea and the revenue share that goes to the developers. Also what's interesting is developers are buying from these one off makers say that grow Garden, I think as a team who still owns about half be sold off the other half of his business over to New Zealand splitting point studio.
Are you helping facilitate that m and A. How do you see your role there?
We would like to more and more make a very liquid market there. And at our Roadblocks developer conference a couple of years ago, I shared that as we have a larger proportion of the gaming market running on Roadblocks, it's not inconceivable that there will be a billion dollar studio on the platform. We're well into the nine figures hundreds of million hands of dollar type studios and grow Garden was a great example of an initial small team working with Jendell, who acquired part of it, and it
was a deal that was a win win deal. The original creators did very well and Grow Garden has been refined and tuned into now the largest simultaneously played game in the history of the Guinness Book of World Records, going over twenty million concurrent players.
A few weeks.
Ago, Dave, about three weeks ago you came onto the program and discuss with me generative AI video based age verification.
In the interim.
On July twenty fifth, we got the Online Safety Act, and which will have an impact on you. Could you just quantify how that those parameters might impact active users or engagement just quickly.
I want to highlight we have always had safety as one of our top priorities, and we're not waiting for the law or legislation. We've innovated with age estimation on our own because we want to keep people on our platform. Roadblox is a place where we filter all the texts and the voice, where we monitor for critical harms, where there's no image sharing or any of the things that
might happen from that. So age estimation we took leadership here in innovating and we think it's going to set the standard for the industry.
Roadblock CEO Data. It's great to have you back on Bloomberg Tech. Thank you very much. Now coming up, we're standing by for SpaceX crewed Falcon nine rocket launch headed to the International Space Station. Scrubbed yesterday. The countdown continues for today.
We'll be right back. This is Bloomberg Tech.
We're just a couple of minutes away potentially four astronauts set to launch to the International Space Station. Live shots of NASA's Kennedy Space Center in Florida, Complex thirty nine A. The astronauts on the SpaceX Falcon nine rocket in Dragon capsule. This Dragon capsule Carrow has flown, will be at sick flight, which is an interesting data point and milestone in and of itself. I say potentially because I was looking at
those clouds. They're a bit worrying. I know that SpaceX and NASA a bit worried as well.
Just talk about just.
What this means for Fulcan nine to zero and the symbolic nature. It was but a few weeks ago that Elon Musk was threatening to decommission it almost in his tet tet with President Trump.
Absolutely right and absolutely so you know, NASA and America rely on SpaceX to move astronauts and human beings to and from ISS. If this mission is successful and goes off today, two hundred and ninety people will have been to ISS in its history. Sixty eight of those will have been flown by SpaceX in the modern era. So it gives you a sense proportionately of how much SpaceX has dominated this space SpaceX has been warning us about lightning.
We were scrubbed yesterday. But that is the story that you need to understand. You know, SpaceX is the de facto market leader of moving not just humans but payload to orbit generally speaking.
Yeah, and go back to the fact that this is a sixth flight. It was originally commissioned for five flights. But they're trying to sweat this asset, right, This is all about bringing.
The cost down.
Yeah, I mean, look, the economics have changed vastly under SpaceX. I'm keeping an arm on the clock because if we tip over T minus one minute, it's a pretty good signal that we will be launching in the sixty seconds time. You know, the ISS has a limited shelf life. It's going to be decommissioned beyond twenty thirty and literally crashed into the ocean. But it needs servicing, and so you know,
SpaceX right now is the only option. We have some reporting this week that the interim chief of NASA, which is Transport Secretary Sean Duffy, met with his Russian counterpart. There will be a Russian astronaut aboard this Crew eleven mission. But if SpaceX wasn't there, then the only other option for the United States would be Russia, which in this climate, Yeah.
They'm been told to go for launched and this is symbolic from a geopolitical perspective on who is on board.
Yeah, we'll get to the crew. But you know, I think this might be a first for Bloomberg Tech if we ever carried a launch live.
I don't know. But with ten seconds on the clock, let's listen.
In ten nine eight, seven, six, five four three two one kitson pitches full power and lift.
Go Falcon, go back, go through.
Together we rise as a space that Scroll eleven the heads up to the International Space.
State vehicles with pitching down range.
One point seven million pounds US phenomenal propelling Falcon nine as the vehicle pitching down range and making its way up the East coast and we'll soon join Expedition seventy three of the Orbiting Laboratory. So far getting good call outs on that first stage performance.
We are now t plus thirty five seconds into the Crew eleven mission on board Dragon and Falcon nine. The Thalcon nine engines down are throwing down.
To power in colementary or not not to.
Help pass through the period of max Q or maximum aerodynamic pressure on the vehicle during a cent max qu.
You just had max.
Q right there.
Falcon nine is supersonic hell.
One minute nine seconds into what is a little bit more lost up a nine minute flight up till as Dragon continuing.
Got so currently traveling fifteen hundred kilometers no hour is the SpaceX Falcon nine with Dragon on top, goes through Earth's atmosphere or get up to around like fifty five hundred and fifty six hundred miles per hour. When it gets to that orbital height, you're talking like seventeen thousand,
five hundred miles per hour. They called the moment of max Q carro, which is the moment where the rockets undermost stress you know from a from a G force perspective, passing through Earth's atmosphe that rough air that it passes through for the next key moment is about I don't know, let's say thirty seconds away, and that's where that first stage, the main booster you have main engine cutoff or Miko, and it's kind of an important moment because from there
you'll get the two stages separating, and then it's like literally fully automated. It's I was going to say clockwork, but it's rocket science and it's pretty flawless most of the time.
And it Mike thinking, who's the pilot from NASA veteran on these three previous missions, we understand managing to ensure that we get safely these people on board, these four crew members up to ISS so pretty integral moment, and we wonder just how their bodies are feeling on board right now? Can you just give us a sense of what it's like to experience this sort of force.
I don't know, because I've never been on a rocket, but no, it's immense stress on the body. We just saw that perfect shot of first and second stage separations. What you're looking at is the single engine attached to the second stage at the base of dragon capsule. You raise a really good point, which is on the crew and you asked me earlier, but we got interrupted by the flawless launch, frankly. But one of the interesting things about this is that the commander of this mission, Xena Cardman,
she had been due to fly on Crew nine. She's now leading Crew eleven. But this is her first ever spaceflight and that's notable because this shuffle was caused, if you remember, by the star Liner program and all the different tests that kind of went wrong and the timeline slipped. But that's a really interesting and notable moment. We're about three minutes and thirty seconds into this sequence.
The booster is it falls down to Earth.
We're not seeing it in shot right now, will sort of do its burns and flips pretty soon before it comes into shot. But again, as it stands, this is all nominal carrow, as they say, which means everything's going fine.
Going fine for Crew eleven to then dock to relieve Crew ten, instronauts who've been on to ISS for how long.
Many many months, I think since the spring.
The idea is that that there's a handover period, right which is really which is really quite normal, and they you know, in order to get there, have to dock, and then there will be plans in place by NASA and SpaceX to bring the existing crew back down there online. And you know, like one of the good questions that you raised earlier and that people always ask in our coverage is like what.
Are they going for? And part of.
It is, like I'm repeating myself a little bit. ISS gets decommissioned in about six years time. You know, it's the end of the agreement. It's served its life, but in the interim it needs maintenance. And so as part of the cargo payload that's going up with Crew eleven, there'll be materials to service the humans on board, but also like the scientific apparatus and equipment that's up there.
And let's just a little bit more. You mentioned Xena cardman commander and.
One of the few active female commanders in recent years.
We've got Mike the pilot.
You've also got Japan involved, Russia involved. This is geopolitics at work here.
Yep.
So JACKSA, which is the Japanese Space Agency, has sent Kimie A Yui. This is his second space flight. He actually went up in space twenty fifteen. And then this is the bit, right there's the reporting that we had today that the interim NASA chief, which is Transport Secretary
Sean Duffy, had met with his Russian counterpart. Because the context were SpaceX not around to do this, then America, because of what's happened with Boeing and Starliner, would probably rely on ros Cosmos, the Russian agency, to take American astronauts to the International Space Station. Now, in this case, there is a Russian astronaut aboard the capsule. His name is Oleg Klattonov. It's his first trip to space as well.
And away from whatever is happening in geopolitics and in markets, remember that the agreement between America and Russia CARRO is longstanding, you know, the agreement literally to cooperate on not just ISS, but move astronauts from Earth into into outer orbit in ISS.
What's so interesting is the dominance of Eno Musk SpaceX. Here we also think about Japan being in the mix, and indeed Russia, as you say, alongside the United States. It was but this week earlier, So much has happened this week, but that Australia didn't manage to get a suckered off the ground. Just where do we stand in this so called space race.
So SpaceX as a private company, but an American company, dominates the vast majority of payload to orbit around eighty five to ninety percent, including human and non human payload. China is increasingly doing more. You will also remember that like there are other nations around the world. Some of the Gulf states like Ua have space ambitions. But it goes back to what we were talking about earlier, right,
which is the economics of launch. As we see the booster on the left hand side of the screen re entering Earth's atmosphere, falling down using aerodynamics, but also the paddles at the base to orient itself and slow itself down. On the clock, by the way, I'm jumping around a bit, but we're seven minutes in and the kind of key moment is about forty seconds away where we should see
that booster land back to the landing zone. But to answer your question, yes, SpaceX dominates, but there is pressure coming from both government sector backed and private sector backed rivals around the world, and we're.
Just losing some connection there. We have it, will they make a landing. It's like art ed there, we have it.
Well, it's rocket science.
Art and rocket science at work, but just remind us because we've just been so in awe of not only these landings and the reusable rockets, but the catch that we've seen in the next iteration of spacecraft coming from Elon Musk.
Yes, so Falcon nine is SpaceX's high volume vehicle and launch system. That's what we're looking at here with Dragon caps you're on top. But they also have Falcon Heavy, which is used for basically higher density satellite payload. It hasn't taken humans. And then Starships the next phase. Starship the biggest rocket that Humankind's ever built, and I think Elon Musk has said on X that the next full test of Starship is going to be in the next
month or so. The mechanism for the Starship booster in that system is, as you say, not to land it on a landing pad, as we just demonstrated with Falcon nine, but to catch it. And you know, we can't do this right now because we're carrying the launch live, but go on the internet and look at how that works. That bit they've kind of done. They've done it successfully. It's the ongoing spacecraft part of Starship that they're still working out Let's.
Talk a little bit about economics here of NASA as well, because we just see the energy behind wanting to put money to work behind Elon Musk SpaceX, and the rounds get larger and the valuation just sols.
But NASA itself is trying to do more with less.
It's well, I mean, and SpaceX has been at the core of that story, and it's something that's started in the Obama administration. You know, again, the economics of space have changed. SpaceX has never disclosed the per seat cost, but you can do the math based on the disclosures that we do have, and it's several million dollars per person. Compare and contrast with what else has been out there from United Launch Alliance. And let me just catch this key moment here.
Look at that.
Do you see Dragon coast into its orbit.
And a wonderful view.
There is Dragon Endeavor with crew eleven on board.
Safe inspiration confirmed and safe.
In Dragon Cheap engineer on dragging the ground. Containa, Mike kem here Hole, welcome to orbit on behalf of the entire Falcon team. We thank you for flying with Falcon today and wish you a great mission. Dragon will take you from here over to'll launch director for a few words.
On behalf so Caro, what that was was dragging the capsule and the left hand side of the screen you see the crew inside there, separating from the second stage, and now they're in orbit, right, And I'm just going to give you a quick statistic which is very interesting. We were scrubbed on Thursday, twenty three hours later.
We did launch on.
Friday, but because of where ISS was lined up in with Planet Earth. For a layman's explanation, actually what's going to happen is that all being well and equal, Crew eleven and Dragon will arrive at the ISS at exactly the same time on Saturday morning, about three am, eas in time as they would have done if they had launched yesterday. And that kind of speaks to speaks to rocket science, doesn't it.
This view of space and analysis of curvature of Earth and speed at which we rotate in rbit, it sometimes works beautifully in a lignes as this entire viewership has been seeing throughout the show of what's happening currently live with Falcon nine and how we start to see the astronauts now relieve, Now just go back to the economics a little bit, because what we're expecting now is they are going to reach iss they're going to be relieving Crew ten.
But in the future, what we see fewer astronauts on.
Board maybe I mean again, the movement here is for the private sector to build spaces and so you know the cadence of that happening. Who knows this crew will be there for six months. NASA's thinking about maybe eight months, you know, relieve Crew ten, they were there since March. These come home, but this missions to success so far.
We continue to see how the astronauts celebrate on board. As you mentioned, Japan, the US and Russia represented. That does it for this very global and very intergalactic edition of Bloomberg Tech.
Out of this World. Check out the podcast. You know where to find it. We publish it everywhere. Lots of you listen to it. It's been a great week. This is Bloomberg Tech.