Potential Twitter Changes Under Musk and Starlink's Launch

points for big tech going forward. Plus e Lad Musk sells eight and a half billion dollars worth of Tesla shares to pay for Twitter, but he's still got to come up with billions more. Tesla shares are down since he disclosed his Twitter steak, and Twitter shares are trading lower than is offered price. Can Musk make the tricky math add up? And over to Musk's other company. We are watching this SpaceX rocket about to take off from Cape Canaveral. It is poised to make history, marking the

fastest turnaround time for a refurbished rocket ever. We will bring it all to you live meantime for tech investors, worst start to the year in two decades. If you take a look at the bigger picture, As Taylor mentioned, the NAZAC one hundred hammered this year, wiping out more than one point eight trillion dollars in value in April alone. How much more volatility will the tech sector? See Mark Mheney of ever Core with us now to discuss Mark,

how much more? How much more are we going to see? Well, we still have FED decisions coming up this next week week, and then one shoot that has not yet Followen and Taylor just started to tease this out, is whether the consumer really weakens. Look, everything's been thrown against UH tech

stocks so far except for a global recession. But we know we've had decades high inflation rates, we've got surgy interest rates, we've had um We've had a war breakout in Europe that has dampened at least some demand so far, just dampen. It hasn't crusted yet, has dampened it. And then you've got supply chain issues out of out of China, and so it's hit Apple, it's hit Amazon, it's at Google, Facebook, you know, Microsoft, even all of the major tech stocks.

I don't think it abates quickly. It does abate unless we get another shoot to drop with the consumer really falling off a clip. We haven't seen evidence of that yet I hope it doesn't happen. Now. You cover so many big tech companies, Amazon, Alphabet, Meta, Twitter, Netflix, when you look at the broader landscape, what are the most alarming pain points that you see? Well, I also when I want to put this in context, Look, this is the third bear market that you and I've gone through

just in the last five years. We had one in eighteen of course during COVID the beginning of COVID, and we have one now. But you know we've had I don't know, I've lived through seven or eight of these. Uh So they almost all are fundamentally driven and there are these confluence of events coming up. I think of all those stocks that you mentioned, probably the one that most fundamentally surprised me was Netflix that just hit a wall.

And I think that was because they just didn't have a plan B or a plan C at least not ready to go and uh and they sort of hit a little bit of market maturation and lots of competition. I don't think that's the case actually with Facebook or Google or Amazon. I think these are dips that you as a growth investor. Me as a growth investor, I want to be buying. I call these d h q s dislocated high quality opportunities. I know everything is being

thrown against Amazon now. I mean this is This is about as big of a macro place you can find. They got one point six million employees. So if wage inflation is going up and shipping inflation is going up and fuel inflation is going up, if all that happens, Amazon is definitely negatively impacted. I just don't think this is a structural change in Amazon's business model, and I think they'll start scaling through it, and you want to

be buying them when this is. I mean, this is about as bad as it gets, and all of the stock is gonna work as things get less less worse going forwards, and I think they will barring the global recession. Is Netflix going to be able to peel itself off the wall and get some momentum back. Yes, at some point I'm sure they will be able to. To me, this is like if you remember Emily price Line, which

turned into Booking dot Com. There was a wonderful stock for a decade like Netflix was, and then it went x premium growth. They stopped growing above and they just kind of did this ten percent revenue growth, and they traded fine in line with the market, but they didn't outperform. And I sort of think the same thing happens here with Netflix. And the challenge with Netflix is it went into its kind of an exited, you know, premium growth from a very high multiple, so you had this wicked

correction down. Now you've got this thing trading at like fifteen sixteen seventeen times earnings. That's about right for an asset like this, So I think it kind of hugs the market for the foreseeable future. I you know, I downgrade the stock earlier this year, and uh, this is my history tells me this stays that you stand on the sidelines on the name like this for at least a year. Meantime, got to talk about Twitter Musk trying to buy to sell more shares to get the money

he needs to do this deal. Twitter earnings, though, you know, didn't look great. Do you think he's really committed to owning and running a money losing asset or or does he want to turn this into a profitable business? And can he get the deal done even as Tesla shares continue to decline? Well, um, I think he can get the deal done. I think he's got enough personal wealth that he can he can get the deal done. It

may not be as attractive as he first thought. The second thing is, I don't know whether he early wants wants to run it as a profitable enterprise. Is public statements indicate that he hasn't. That said that this person is an enormously successful entrepreneur. The difference here, however, Emily, is that he didn't build this company from the ground up. He's acquiring an asset and so then you go through it. I mean, you do in that big M and a deal,

you're going to have to figure out cultures. Uh. You know, this is a very different business model than he's run before. I know he's extremely intimately knowledgeable about how Twitter works as a user, but you know, there's a side of the business here. I mean, the people who pay the bills to Twitter are advertisers, and that's a very different mindset, very different set of skills. And I don't know what

Musk wants to do about that. If he doesn't care about the advertisers, they're they're not gonna care about him, and you're gonna have ad dollars decline. And by the way, that that's your cash flow. So I I think the operational challenge here is gonna be greater. And I don't know whether that bother bothers must or not, but it's it's gonna if it's if it's a financial imparative for him to get the this is gonna be a bigger

challenge for him. If he really wants to run the business properly, this is gonna be this is gonna be a challenge for him. And quickly twitters are still trading below his offer price. Do you think investors don't think he can get the deal done? I think there's always a little bit of a gap in these M and A deals. You know, this deal is not going to probably close for a couple of months. Something could still come up regulatory wise. Uh, so there's always gonna be

a little bit of a discount. I don't see it as that glaring the gap here. So yeah, I'm not surprised that there's a gap. I would expect it to narrow as you get closer to whenever this thing is supposed to close. I think the thing is going to close pretty quickly in the next couple of months, though next month or two. Interesting why quickly. I don't know what stops it. I mean, there's no other bidder here, so it's only regulatory approval. The board has agreed to this.

I think the largest shareholders have signed up. I don't know that for a fact, but I'm guessing that that's the last series of events that caused the board to say okay. Deals done because they heard from their largest shareholders that they want this. This deal completed, so there's nothing to really stop it except for the regulatory approval process. Interesting. Mark Mhoney of aver Cores always going to have you

happy Friday, Mark, thanks for joining us. Elon Mosk sold an additional four and a half billion dollars worth of Tesla stock, according to new regulatory filings. That makes his total sales this week eight and a half billion dollars, bringing him one step closer to making his deal to buy Twitter a reality. Mosque has already discussed some of the changes he'd make to Twitter on Twitter, most notably

his now pin tweet about free speech and censorship. There's been some excitement and a lot of concerns about what Twitter might look like under Musk, especially when it comes to changing Twitter's moderation policies. My next guest actually helped Twitter's Trust and Safety Council shape those policies. And I'm joined now by Brianna Wou, executive director Rebellion Pack, one time congressional candidate and a woman who unfortunately knows a

thing or two about harassment. And Brianna, I just want to remind our viewers that not only did you become a target of vicious trolls on Twitter as a result of gamer Gate, your harassers came after you in person and tried to, you know, physically harm you. In the wake of that, you help Twitter shape its moderation policies. How do you feel about handing that over now to

Elon Musk Well, I'm obviously very very concerned. Um, you know, something I talked about two NBC News this week was kind of history of Twitter's moderation policies improving in the wake of gamer Game. I talked to Del Harvey and a lot of other people at Twitter from really extensively from about until about eighteen trying to basically fix some of the things that went wrong at Twitter, and something I really was stressed everyone watching you on Bloomberg is

ultimately this was a u X problem. We were trying to solve a user experience problem. This was not political, It was not a left versus right screaming match. This was people on Twitter are having a bad user experience and we need to fix it. So I'm really worried that all the progress we made to basically let a lot of people use this service and not get death threats, rape threats, you know, their their personal information published. I'm

extremely concerned that's going to take a step backwards. And because this is Bloomberg, I think ultimately that's going to really affect Twitter's stock price, in their profitability. If you could give Unmusk some advice, what would it be. I think the main thing I would say is listen to the professionals on the trust and Safety team. I cannot emphasize to you enough. These are data driven professionals. They're

not ideologues. They sit there and they comb through literally large freams of data every single day trying to figure out how to make the product better, what the shortcomings are. It's almost like cyber warfare in a sense, you know, where you've trolls poking at the defenses of Twitter's trust and safety policies all day and trying to figure out how to get around it. I would say listen to

those professionals. What concerns me is, judging from miss tweets, it seems like he's coming in with basically a political, uh political crusade that he's trying to bring to the platform, rather than just trying to empower his professionals that are trying to solve this from a non political point of view. Now, Elon Musk is inarguably an innovator and has you know, brought some of the most difficult ideas in history to fruition.

Why shouldn't we think he could actually make Twitter better? Well, you know, if we were talking about making a tech product, I think I would have a lot more faith in him. I think it's also worth saying Elon Musk is also someone that makes really big promises that don't seem to go anywhere if you listen to him. We're going to have uh, you know, Optimius robots, these fully autonomous robots that can act with artificial intelligence, walk around on two legs.

Those will be out I believe next year. According to his public statements, uh, he said Tesla will be a fully self drivable car every single year for the last six years. I think there's a real credibility gap when it comes to his very large pronouncements on this UH in something that's I really want to stress Emily Ultimately, most of the policies that changed at Twitter happened because

the Twitter leadership was invested in it. You know, from to about they were very incentivized, not just you know, from users, but from the stock price to address harassment. If you remember, they tried to sell themselves to UH I believe it was ABC and Distinc. At one point Twitter did, and the deal fell through in part because of the congeneral harassment on the platform. So you know, ultimately this isn't just a user safety issue, it's a

stock price issue. Now. Jack Dorsey just posted a long Twitter thread taking responsibility for mistakes he has, you know, talked a little bit about the handling of the New York Post article mentioning Hunter Biden. But of course there are many many other issues um that Elon Musk seems

to be taking issue with. Jack says a transparent system, both in policy and operations, is the right way to earn trust, whether it's owned by a company or an open protocol doesn't matter as much as deliberately deciding to be open about every decision and why it was made. It is not easy to do, but it must happen. What do you what do you think he means by that? And is it really possible? I don't know how possible it is, but I think it's a good ideal to

strive for. I think a lot of the misconceptions about the trust and safety policy happen because there is this, uh, this this, then this veil between what happens on that team in the public. I find it very notable of my work with them. I was really encouraged to not

speak about it ever, Um. I only spoke about it this week because I felt the stakes were so high and that it was worth worth kind of talking about my experiences on that team because of these this misconception that you know, it's a bunch of democratic people behind the scenes trying to silence conservatives. Absolutely not my experience at all. Um. I think that if we had these policies applied more transparently, I think that that would be good for getting the trust of all users. You know,

what if find is so interesting, Emily is from my perception. Um, if you look at Twitter and their ability to solve address things that we all agree should not be on that platform, things like death threat and rape threats, I think they do a much better job than many of their competitors. They certainly do better than Facebook and read it, but they've never really gotten the public credit. I feel that they deserved for that. I think that being more

open with that would definitely help it. I would say in my own experience as a user, Twitter's moderation has gotten better, at least from my perspective and the tweets that I personally see. You know, I think the folks who are really excited about Elon's vision seem to think that Twitter has made a lot of political decisions over the last several years. Even even Jack himself says, you know, he generally isn't a fan of band banning someone, and

Twitter is the platform that banned President Trump permanently. Do you think the decisions that Twitter has made are political or were politicized? You know, when I come on your show, I try not to make things partisan. But since you asked, I'll tell you my honest impression. In gamer Gate, I felt that these policies were the all right versus normal people. Right, it was the trolls versus just professionals trying to get

their job done. I think unfortunately, since we have seen these issues become partisan, as some people are kind of becoming their worst selves online, so I think unfortunately this has become another left versus right screaming match. I can't think of any problem in America that's gotten better on its become a partisan screaming match rather than a problem to solve. Brianna Wu Rebellion Pack executive director, UM, longtime

crusader for better moderation policies. Thank you Apple warning it could lose billions this quarter due to supply shortages, specifically tied to China and it's strict lockdown policy. I'm joined now by Bloomberg's Mark German, who of course covers all things Apple for us. So Mark, just exactly how bad did Apple say these supply chain issues are going to get and is it all because of COVID in China? Well? Pretty bad, right, They're guiding between four billion and eight billion.

And if you listen to the call, it seemed like Tim Cook and look at my Austry the CFO, they really weren't sure how big of an impact it really would be, right, That's why they gave that big four to eight billion range. Now. They've been giving these ranges of supply chain impact now for a few quarters, but this up to eight billion dollar marker, that's the biggest one. Now analysts still think that Apple could beat in terms of year over year, right, But we'll see how ultimately

Apple shakes out. I think it's a combination of the supply chain in China, which definitely has a long way to go in terms of the overall strategy final assembly. There's obviously a bottleneck in recent years. I'm sure we'll

get more into that. I also think it has to do with global economic conditions, the war Ukraine, inflation, people trying to hold onto their money, and also in terms of you know, products in some sense, right, like people are anticipating big iPhone, fourteen, big iPad and Apple Watch changes later in the year, as Apple always does, so people could be holding onto that too as well. Q

three is traditionally one of Apple's more soft quarters. How do you think investors are going to handle this given that, you know, Apple's learnings generally were pretty good if you look at how dismally bad the results have been from other tech companies like Amazon. Yeah, I think investors are probably going to wait to really, you know, make their long term decisions on Apple until the Q three results, right. I think they want to see how things shake out.

You know, Tim Cook and Luca were they were vague enough to indicate, you know what, maybe it won't be eight billion, maybe less than four billion, Right, That's why they give that being ranged. They didn't really seem sure. So if Apple is not entirely sure, I'm not sure investors and analysts can be entirely sure too. So I think they're gonna wait until late July to see how

things really shake out. Obviously, there is a lot of reason to be optimistic about Apple, but an eight billion dollar hit yet again on the supply chain indicates that Apple really needs to be making some tweaks to that overall strategy. There and Tim Cook, the architect of the Apple supply chain over the last twenty years and change,

he was again defensive about the supply chain strategy. And so we'll see, you know, if Apple does make those changes that they clearly need to make, And what are the products that you are most excited about coming year September quickly, Yeah, I'm particularly excited about the Apple Watch, right.

I think there's gonna be three new models this year, including a new ruggedized model maybe with some satellite connectivity features so that will be pretty nifty, and new iPad pro and also the a R headset at some point. All right, Mark German, who of course covers Apple for US, will be on the lookout for all of those things. And now we're about a minute and a half to launch of that SpaceX Falcon nine rocket carrying fifty three

Starlink satellites. We're looking at a live look there of Cape Canaveral Space Force Station in Florida taking off as planned at this point at five twenty seven pm Eastern time. I want to bring in Bloomberg's Justin Bachman, who covers the space industry for us. This would be a history making mission, justin correct, and that this would be the fastest turnaround time for a refurbished rocket ever. That's true. Yeah, they have shaved their previous record of twenty seven days

down in twenty one days. So it is a record. When you put it like that, it sounds pretty well, um, you know, what's curious is we don't know what their what their target is. It's it's interesting to see if you know, this becomes more of a two week or even a one week turnaround. Um for when they you know, land these rockets and they're ready to fly them again. Um, and I think they're learning. It's it's one of those open questions. How many times can I falcondine fly? And

how quickly can you can you get the refurbishment? How much do you need to do versus what you can? Justin here we go five seconds to go two one pigniction on sorry pie vehicles catching count range and when D chamber pressure is nominal. Yes, Falcon nine has successfully lifted off from Space Launch Complex Party carrying our fifty three Sterlink satellites. Now although a liftoff, gravity is pulling the vehicle straight right, the rocket is on its way

twenty seven days after its last trip. This is the sixth flight ever for this particular rocket, now carrying fifty three satellites. Starlink satellites into orbit. Are Justin Bachman, who covers the space industry for US now justin how significant is this milestone? I think it's fairly significant because you're

seeing SpaceX learning. They fly a lot, and they learn a lot, and you know, one of the questions that the company has got to be, what is what is the minimal amount that's required to have a safe flight for not only our payloads but for customer payloads. UH. And the faster you can do that, it's you know, a lower's cost. And this is really a business more than a novelty. And when you make it a business, you're always looking to lower costs and this is an

important part of it. How quickly can you refurbish it? What's the minimum how quickly can you fly? Um? And today they're you know, they're taking out pay load that's going to contribute to their their constellation and that's more money. So it's it's a business that works. And I think we're seeing a lot of the on the cost side

with with these kind of refurbishments. So we're about thirty seconds away from the first stage main engine getting cut off here, and I'd like to talk a little bit about how this fits into the bigger mission of elon Musk and SpaceX. UH. The goal is to have these taken off as frequently as airplanes take off on Earth. Can you paint the picture for us just justin of

what this future space economy will look like. Yeah, you're you're telling about an era not too many years into the few sure if you believe a lot of the ambitious proposals and optimists, where you do have rockets that take off as frequently as airplanes, because there is a burgeoning commercial industrial base where people are not only living and you know, space tourism is a small part of it, but you have companies that are actively manufacturing and doing

other things with micro gravity UM and using you know, a hard vacuum of space is a very useful tool in a lot of research. UM. So you have this economy where you have a lot of things going to and from space, uh, mostly high end, high value products and services where you know they're they're using the environment for specific reasons. And you know, pharmaceuticals, UM and tissue oregan growth is one area that we've we've heard a lot about UM. So that's what you know frequent launches are.

And the Falcon Knight itself is going to be retired, um. You know, not not too many years in the future, or where you know, if they're starship machine works as intended that's going to take over, and that's a much larger UM rocket, much more reusable even than this one. And so you're gonna see other companies internet space as well, and it's gonna be a you know, a market where you have frequent launches and we probably won't talk about UM each one as a novelty because it becomes so routine.

And I think that's the goal. UM Nobody is there yet and it's not exactly at hand, but I think that you're seeing SpaceX build the blocks where that does become the ultimate destin stay with us. I want to bring Lisa rich In, the co founder and CEO of Explore. This is a company that provides space as a service by hosting payloads in Earth orbit and beyond. Lisa, this rocket flu just twenty one days ago, So that timeline

is getting tighter and tighter and tighter. You know, you know what exactly does this signify in terms of what's BaseX and the team there has accomplished, Thank you, Emily. What we're seeing is what Justin was referring to, is this becoming the business of space that we are able to launch frequently and this becomes an enabler for commercial

space companies to be flying payloads. We're not only flying other people's payloads at our company, but we're flying our own uh sensors that allow us to provide data and bring that data back from space. That enables companies like the oil and gas industry, insurance industries, logistics industries that can help us with supply chain issues or you know,

issues with even disaster responsiveness. So all of this. You know, we watched the launches and it's exciting to see the launch, but we'd love to tell the story of you know, the high capability of what's flying and what that means back here on Earth. Fifty three satellites going into orbit today, and thank you for explaining just how important these satellites are. You look up in the sky on any given night and you see them, and I wonder, are we getting

concerned that it's getting a little crowded up there? Uh that you know are there? You know, once the space economy becomes more rich, are their concerns about about crashes and traffic going forward? Well, I'm glad you bring that up, because space traffic management is an important part of the process, and we're going to be getting better at this by

improving our regulatory process. So improving the regulatory process actually makes us more competitive, and we have folks working very hard to make this UM have more ease of use. Right right now, when a company flies as spacecraft or satellite as we call these satellites, uh, you here, if there's a conjunction event or possible collision event, you're notified of that. But the company itself isn't necessarily able to track it. They're going to be notified. So in the future,

you know, we're going to have that process. I think opening up a little more for awareness that allows us to avoid uh these potential collisions. But is it a danger now or five years from now, I'm not so sure it will be because our systems are all improving in the technology and awareness of where satellites are is improving all the time. So a space is a big place. There's a lot of space and space uh, so I don't find that a concern and I don't think a

lot of satellite operators do necessarily today. So we just saw the entry burn process there that is now shut down and complete. First stage landing burn uh will start at about eight minutes, so we're thirty seconds away from that. US. In so far, everything seems to be going as planned. Walk us through the rest of this mission given the point we're at right now. Yeah, it does seem to be going to plan. Um. So what you'll see coming up next is as you mentioned, is the the landing

burn where you know, this needs to slow down. It is still you know, supersonic vehicle at this point, and it needs to shed a lot of speed still and to do that, it's gonna you know, fire a rocket engine again, um, vertically coming down. And then after that you have the landing bird. Um, you know, complete where we've we've seen it, but that you know, that's a crucial part of it. And you're seeing that start right

there for first stage landing burn happening now. Um. You know, you know, at this point, what are the things that could could could there? It is there, it is coming back down. UM. You know, at what point do we consider this a success? I think it's a that's when they get their satellites deployed, uh and going where they want to and you know this this booster is gonna fly another day maybe soon. Alright. The goal I would guess is sooner than twenty one days, because that's how

long this booster took to turn around. Lisa, you know just how quickly, Uh do you think turnaround can get if SpaceX UH does its job right? Yeah? I think that they probably can keep shaving time off because that is what they do. They're looking for all of these incremental ways to keep lowering the turnaround time and increasing the usage and the reusability. So for this to have

been six times to fly, that's phenomenal. You know. They have the same mindset as my company explore where we're looking at, you know, low cost and high capability, and they're proving this out every day by showing us that they can turn around in twenty one days. You know, I have visited these. They're extraordinary to see upfront. Um did the manufacturing capability and refurbishment now, Um, they're working

like clockwork and I love to see that. It just opens up the doors for commercial Those satellites will be deployed about an hour into the flight. UH. Justin what's next for the SpaceX team now that this booster is back on Earth. Uh, they'll be looking for another Starlink launch in short order. I think maybe next week if I recall correctly, but um, you know, more to build out that constellation and and add new customers. They just added their first two airline customers in the past week

with an airline called JSX and Hawaiian Airlines. So they're moving into aviation. They want to get into cargo ships and other maritime applications. UM, so you're seeing starlink become more of a non residential but also a you know, commercial business product as well. All right, well, we'll be watching for those satellites to successfully deploy, but so far it looks like a rave success for this latest SpaceX mission.

Justin Bachmann for Bloomberg. Lisa Richard, co founder and CEO of Explore, thank you both for helping us narrate that journey. There's been growing concern that pandemic fuel demand for PCs is sputtering. Intel underscoring that coming out with a disappointing second quarter forecast. I spoke with Intel CEO Pat Kelsinger earlier and asked him why, despite this, he's still optimistic about the second half of the year. Take a listen. We see continued strowth, strength and growth in our data

center business, our network and edge business. Very strong first quarter and we just see that growing throughout the year. We also have our new growth business is an accelerated computing and graphics, the new area of foundry and Mobile I. All of those had very good quarters and we forecast growth, very strong growth for all of those as we go into the second half, and then the PC business after the inventory correction is done, we expect in Q two.

We expect the stronger second half. We have a lot of visibility into where our O e M inventory levels is, and we're also seeing that the strength of our product line are old Lake products ramping ahead of schedule, you know, the Raptor Lake products already being broadly sampled into the industry. And you know, the second half of the year will

be highlighted by a commercial refresh. You know, we're way overdue in the commercial segment for a refresh, and you know, with people coming back into the workplace, we see very strong outlook for the commercial portion, where our market share and our pricing is a stronger. So overall, we're very confident. Reaffirmed the second half of the year and the overall number, so we're feeling very good about the business and the execution.

In Q one with a modest beat despite all the turbulence, just reinforces our confidence that the execution machine and Intel is rebuilding and we have confidence in the rest of the year now. I spoke to Apple CEO Tim Cook yesterday who said, you know, they're still seeing supply issues and they're really almost exclusively related to chips that impacted

several of their products. They also said on the call that supply issues could dent sales as much as eight billion dollars in part due to these continuing COVID lockdowns in China. You said the shortage will last longer than even you thought. How much longer and what more color can you give us? Yeah, And I think there's two different questions there, Emily. One is some of these near term lockdowns and we're starting to see the port open up.

We're getting some positive news there from China in that regard, which is you know, particularly challenging for all of like the p C, O, E, M, S and Apple a lot of business going through there and a fair amount

of our business as well. Overall, though, the big story is around building up the semiconductor capacity, and we had felt like twenty three we'd start to see that equilibrium now, and no small part because of some of the equipment shortages, the equipment that goes into the fabs that we're building. We're seeing those lead times push out substantially, and as a result, we expect the overall semiconductor shortage to not be resolved until four now as some of those capacities

come online. Now, I know you're still bullish on the PC market, and I'm so curious what makes you think it's going to remain strong as we come out of the pandemic, given that we're facing inflation and ongoing war, a rising gas prices, and more pressure on consumers than we've seen in a really long time. Yeah. I think there's a variety of things there. And the range of the PC market outlooks was pretty wide and now it's

quite narrow. All of the analysts, all of the O E M s, and I think Sacha reaffirmed this on his on the Microsoft Arneys call this week. It's a structurally larger market now and refresh rates, you know, the essential role that it plays and work, learn and play.

We just see the PC market as a larger market, and as I've already emphasized, we're way overdue on a commercial refresh Windows eleven key new products like alder Lake and Raptor Lake from Intel, and I'd say that three and fifty million is about a million PCs a day. Everybody's in a pretty tight range around that. I'd say, finally, we just have better visibility. We know our product builds. Many of the other components like WiFi, Bluetooth are made

by Intel. You know. Now our position and graphics is very strong as well. So all of these taken together, we have great insight into what that looks like. Great alignment with our customers are O E M S as well as the other ecosystem partners. So we feel very good that it's you know, about flat market year on year, and we're confident that we're gonna be able to execute gain share in that market as we did the last quarters of last year. So overall, we feel good about

our business outlook there an Pat Calson are there. Monday, Twitter officially accepted Elon Musk's offer to buy the company, and it's been a long week since as users, business leaders, and politicians alike have debated the pros and the cons. My next guest has a very special understanding of the company. Ali Roghani is currently the Managing director and CEO of the y Combinator Continuity Fund uh and joins us now the former c O O and c f O at Twitter.

So I'm so curious as a former executive what you read on this is, Well, it's quite the spectacle. I mean, the world richest man swooping in out of nowhere uh and taking Twitter private billion dollars. Just the speed of the transaction, uh, the ambition uh, and the scale. Um. I think I think it caught a lot of people off guard. I think it's really and it will be an interesting open question where he takes the platform from here.

I think a lot of folks that have experienced at Twitter find some of his public pronouncements about, hey, I just want to make the platform, uh, you know, stand for more free speech. I think a lot of us find it a little bit naive in terms of what he said, uh, and they it doesn't reflect kind of the complexity of the issue. UM. And I would even argue it's not the main issue facing Twitter. Moderation isn't

I think the main issue. I think the main issue facing Twitter in light of Facebook and Instagram and Snapchat and um TikTok and so on. How does the platform continue to grow and be increasingly relevant? You know, the platform punches above its weight, meaning above its size, because of the prominent users that it has and because it's

public and it's really a media property. I think partially, um, but you know, it hasn't really grown robustly for several years, and I think in the maturing social media landscape, that's actually the biggest problem. I think I think that the risk that Twitter faces it just becomes so much smaller than some of the other platforms that it gradually loses its relevance. And I think the growth problem is the primary problem for Elon disolved. Roger McNamee, you know, longtime

tech investor, came on saying something similar. I want you to take a quick listen to what he had to say. Twitter is never successfully monetized itself. The company, I believes still has a huge net loss cumulatively since it was started, and given its influence with politicians, celebrities and journalists, Twitter should have been able to find a path to much greater profitability than its head. It's so influential, Ali, why don't you think that has happened, and obviously I know

that in those earlier days you tried to make that happen. Well. I mean, look, Twitter is as an advertising business, it is at quite some scale. I think it lacks a certain characteristics that Facebook has that make it you know, uh, you know that lend itself to being a better monetization platform. Namely, Facebook's insistence on gathering a huge amount of data on

its users. It's useful to advertisers all the tracking they do off the site, uh, and their insistence on real identity uh, none of which Twitter Twitter does, and so as an advertising platform, relative to the things that Facebook does,

it never quite had as much power. Um. And as I said before, I think the fact that the platform isn't growing robustly um relative to the growth at Snapchat, Instagram, Twitter, among others have seen, means that it's a less exciting place for advertisers to be um as a and a in a place that really can't drive the kind of growth in advertising revenue that some of these other platforms

have driven. Having said that, you know, it's a fairly significant, you know, in the billions of dollars of advertising revenue, uh scale business. So it's not a small company. And if the priority were to drive Twitter to profitability, like uh, Roger maybe indicates should be I'm sure there's a way

to do that by just drinking the size of the company. UM. I just think that the various people who run the company have always been motivated by a bigger ambition and have hence, you know, uh invested in in growing the size of the company. UM. And you know, for right or wrong, what do you think the chances are that Elon Musk can unlock that potential? You know, it's a fascinating question, like how much he even cares about near term profitability? I mean, certainly if he can find it,

he's really accountable with no one he's taking the company private. Um, he has unlimited personal resources. Uh. And he certainly hasn't talked about Twitter as a business very much. Has talked about Twitter as a social platform, you know, he's talked about the importance of freedom of speech, Twitter as a global He's talked about subscription potentially as an avenue. Yep. Ye. So you know, I don't know, I think I'm sort

of interested to see what he does too. But you know, my read of it is, UM, the sort of business of Twitter probably isn't his number one priority in the near term. I could be wrong, but just judging, uh, you know, from some of the common cities made, he seems to be more interested in a more transparent, a more free platform. Uh, you know, making certain things open source. And you know, kind of all these ideas that he's

that he's sort of um mentioned. And this is a very unique situation because you know, with the world's richest man buying this platform, he can kind of do whatever he wants you at least for a period of time. Uh. And I don't think he's behold in the way a financial investor, a private equity investor would be to you know, near term metrics or near term profitability. So I think

it's a fascinating question to see what he does. A minute left, Ali, any advice for Elon Musk, I think the advice I would give is the advice he probably would would have a very hard time taking. Uh. Look, I don't think some of the tweets he's made recently about criticizing some of the employees of the company, and and uh, I think he has a different responsibility now

as the owner of Twitter. Uh, in terms of how he behaves on the platform itself, um, and it's clearly fun for him or he gets some value out of the off color kind of things he does and says, like you know, Ray Kuel and Bill Gates or whatever it might be. I just don't think that helps him now as the owner of Twitter. Um. I don't think it helps him with employees. I don't think it helps him with perspective employees. Uh, and I don't think it

helps the platform itself. So I would say, you know, let's just stick to business and try to try to take this platform to where really it should be in terms of its importance in the world. All right, Oli ROGANI for more Twitter CFO and see oh appreciate you sharing that with us here today. That does it For the sedition of Bloomberg Technology Wall Street Week. Coming up next, we're gonna talk to Larry Summers. He's got some thoughts on the Elon deal. And don't forget to check out

a podcast. You can find it daily anywhere you get your podcasts. Happy Friday, everyone,