From the heart of where innovation, money and power COLLI in Silicon Valley and beyond. This is Bloomberg Technology with Emily Jay I'm Emily check in San Francisco and this is Bloomberg Technology coming up in the next hour. Tesla shares jump after better than expected results showing the car maker is getting production back on track. Tesla making more evis in June than any other month in the company's history.
Dig into the numbers. Plus Netflix shares rally big time after the streaming giant lost only one million instead of two million subscribers. Could this big shift in investor sentiment booing markets as earnings roll out over the next few weeks. We will dig in and it is game on for Phase Clan, the influencer marketing house that counts snoops up as a board member. Just what public vias back? Why now?
Who has to see you taking with tests? I want to bring in Steve Wesley West, Sleep Group founder and managing partner, also former longtime member of Tesla's board. Steve, I know you're liking what you see here. Investors seem a little look warm. What are you thinking? Well, look, it's great news for Tesla and Tesla investors. Everybody thought
it's going to be a soft quarter. We knew there were supply chain issues combined with COVID closing the China facility for twenty two days, and we saw two U and fifty four thousand units delivered. Fifty increase year over year. That's growth. The big surprise was revenue and profitability. They hit sixteen point nine three billion, that's forty year over year growth. The biggest news is largest cars deliveries in history. In June says they're really ramping up to the back
end of the year. I think they're on track to deliver three thousand units a Q three. I think they're gonna hit five thousand and before. If they do that, it'll be closer to fifty six growth. Keep in mind, analysts for predicting profitability of about a dollar eighty one, they hit to seven, so they're on track for record deliveries, record profits. Simply put, Tesla's got manufacturing capability in supply
chain relationships no one else has. Someday they may not be king of the hill, but for the next year or two, they're looking awful strong. Now they didn't change their production forecast. They've made five sixty four thousand vehicles so far this year. They say they'll make a million and a half. Can they really make twice as many vehicles as they made in the first half of the year in the second half of the year without a doubt? And here's why. Mostly the their car companies General motors
for it. They have one electric plant that's going online, maybe another one or two or three years. Tesla now has four plants up and running in California, Austin, uh Shanghai, and Berlin, and all four are running. Austin and Berlin are going to be pumping into big numbers by the tail end of the year. But that's only part of the story. The other key part that investors should understand is the biggest component in electric cars is the battery.
Teslaw is the first to bring battery production in house. With their new technology, they appear to be the technology leader. They're taking the cost curve batteries down fast than anybody else. And on top of that, the leaders are providing what's called O t A or over the air software services
that are dropping bigger profits to the bottom line. And again, the big story is profitability was way beyond when analysts saw and I know a lot of people say this test Less stock price is crazy, this is an anomaly at how capital markets work. But the fact is, if you're going in fifty a year from these big numbers fifty three point six billion to what I think is going to be eighty six billion, and you're more profitable than any other competitor in the market, you're gonna have
a share price that's the envy of the industry. Big story just crossed for Mark Bloomergatto's team, including our own Ludlow, that Ford is planning to cut eight thousand jobs out of the you know, gas powered side of the business in part to fund the e V side of the business. And look, Jim Farley has been very serious about taking on Tesla and also his admiration for Tesla. How well
positioned is Tesla compared to Ford, compared to Rivan and Lucid. Look, Americans want to know how well GM and Ford and Lucid and Riva are doing. But to be honest, there behind they came late to the game. Um, they should have started years ago. Keep in mind, General Motors has been making electric cars for eleven years now and they were only able to make twenty five thousand last year compared to Tesla's nine d and twenty five thousand, So they've got a long way to go. They need to
kick it into higher gear. That having been said, Ribban makes a great ruck, but they too were laying people off. They've taken their production numbers down to twenty five thousand. Well, Tesla's ramping their predictions up to one point five million. The real people look at Volagon, they saw the writing on the wall. Herbert Dese has been a leader in the sector. He took battery production in house early with north Pole. They've got deep pockets factories on multiple continents.
And then there's the Chinese. Most Americans have never heard of a Chinese auto company, but no, this b y D lead Pang, x Pang and others are gonna Lee Auto and x Panging are going to be coming to market. Four. Here's why they're tough. One, they're moving faster than vers than any other auto company except Tesla. To the Chinese are really subsidizing battery and auto costs. Three they make pretty darn good cars, so I expect the global competition.
It's good for the consumer, but there's gonna be a shakeout here. Thirty new electric vehicle companies are coming to the market the last twenty four months. We may be heading into a recession. More cars, fewer buyers will see who winds up on top. To keep an eye on Tesla, Folkswagen and the Chinese. But is the China problem going
to go away? I mean, you still got this twenty one day lockdown quarantine excuse me in Shanghai, and you just got the unpredictability of an ongoing pandemic where the Chinese government could once again crack down and make production They're difficult. Well, look, there are two big sign issues out there. One is the COVID one with the Chinese
dude that others just can't for labor. A lot of reasons is the Chinese bring the entire workforce eight thousand people in the house and they will sequester them for weeks at a time so they don't get exposed. So I think the COVID issue gets solved. The bigger issue, it's the long term geopolitical issue. Is Hi Jinping, who is just reconfirmed as the new chairman of China, has said he intends to reunify or invade Taiwan at some
point if you ever see something like that happened. China has a huge part of its action capacity, uh Tesla has in China. So there's a lot of issues to solve for. But right now, what investors need to look at who's selling the most and who's going the fast. The answer to that question is Tesla. Who's getting the smartest and bringing battery costs down and doing more selling more over the year software services. The answer to that's Tesla.
But these aren't big secrets. Volkswagen, Chinese, others will catch up. It's going to be a question of who's fleet is to foot time to buckle up. How big a problem is the Twitter saga? Doesn't seem like Twitter is gonna let this go away. And obviously Tesla investors haven't been necessarily pleased about the commitments Elon Musk made. Now he's trying to pull out of them. What do you think Testa and Tesla and Elon or a master making great cars. I hope they stay focused on that. I think Twitter
has been a diversion. I think the more they can stay focused on executing, whoever wins the electric car race is going to own a fifty year franchise, So you're gonna need to keep your eye on the ball. Tesla sitting pretty now, but a lot of serious people are coming after you, so we'll have to be on our toes and I hope Tesla's up to the task. I want to see an company win, all right, Wesley Who Founder and managing partner, Steve Wesley, thank you as always
for your insights. Coming up? After Twitter rins round one fast tracking and suit against Elon Musk, what's coming in round two? Ali Rogani, Why Combinator Managing partner and the former CFO and CEOO of Twitter, will share his view of the saga and the recent market meltdown. Next, Mrs Bloomberg, fast forward to October. That's when Twitter and Neon Musk will officially face off in Delaware court. Will Twitter succeed in forcing Musk to do the deal, and if so,
is that actually good for Twitter? For more insight into all of this, I want to bring in Ali Rogani, Why Combinator Managing partner and former Twitter CFO and c OH. So, Ali, what's your take Twitter one round one? That means they've potentially got the upper hand in round two? Is that good? For the company. Well, I think it's good for Twitter shareholders, um, you know, especially seeing the sell off and technology stocks over the past couple of months. I think the deal
is very richly valued in today's terms. And you know, I actually expect Twitter to prevail in court. I think that, uh, the agreement as pretty ironclad as I read it. Uh, and Twitter's lawsuit is very clear. I think, um, you know, if you read it, you feel pretty I think find it pretty compelling that Musk had agreed to buy the company, even in the case of my market downturn. So I don't, um, I think this is going to go on Twitter's direction,
which I think is good for Twitter shareholders. UM. But you know, my own personal view, as I said last time I was on your program, is an not sure it's good for Twitter the service because I don't think that um, you know, Twitter being owned by a single person, um, particularly one whose public statements have kind of indicated a lack of a deep understanding of the way the platform works, particularly in areas of trust and abuse, I'm not sure
that's good for Twitter the service. So that's my personal view. UM. And and it's been pretty consistent over time, so let's game this out and talk a little bit more about why. Let's say Mosque is forced to do the deal. He owns Twitter, he could turn right around and sell it. You know, that is also a possibility. If he is forced to do this deal, then what do you think? How it's very awkward to force someone to buy something that they are saying they don't want. Um. And I
don't know how he reacts. I mean, I think one thing that Elon has proven is that he's quite unpredictable um and quite um you know, uh, extremes sometimes and what he wants to do. So your guess is as good as mine. You know, if he's forced to buy Twitter, um, you know, probably what happens, if I were to just speculate, is that it will lead to some kind of renegotiation where he has some kind of face saving outcome where he can claim he was happy and he becomes a
happy buyer again. Because I don't think he's going to be able to get out of this. Um. I'm not a lawyer, but my read of the documents, um, uh, that's what I believe. I don't think he's going to get out of this. Maybe there's a compromise where he pays a little bit less for it, or the terms are altered in somewhere or another where he ends up magically being a happy buyer again. And we'll see what
he does. Um. I would be surprised, and I think it would be terrible, how come for probably everyone involved if he buys it then turns around and looks for for a new buyer. UM. I think probably he would take a bath on a transaction like that. UM. But in any case, Look, I don't My view of Twitter is it's too important a company to be a like a little hot potato that's jumping from you know, one person's hands to another, going private and going public, etcetera.
You know, if he buys it, I hope he has you know, serious enough about really making the platform better and helping it to reach its true true potential. UM. I think that's everyone's hope. UM. And I still, you know, I have my fingers crossed that that somehow happens. So part of the reason this is a you know, quote unquote good deal for Twitter shareholders is because the market has plummeted. Obviously putting on your y combinator hat and you know, obviously you know, you've you've been the CFO
of of of big public companies. You know, how bad is this is this for Silicon Valley? How lasting is this downturn? And what does it look like as an inflection point when we look back a decade from now. Yeah, great question. I think it's important to put it into
the right historical context. I mean, we went through a really remarkable period, uh in one in terms of technology stocks, where the covid um sort of changes in the COVID economy really benefited a lot of tech stocks, and there was a feeling that like everything was moving into the internet immediately um. And we saw a really historic run up on technology stocks, with stocks trading at multiples that had kind of never been seen before. And so everyone
was expecting a correction. Um. Perhaps not one that was as rapid and severe as what we've seen, but everyone was expecting a correction, and that's what we've seen. So, you know, I think there are a number of companies, great technology companies, recent I p o s like door Dash or Data Dog. They're just wonderful companies, and I think they've been oversold. That's my personal view. But I think if you zoom out. My expectation is that um, this will be like other things, um, you know, like
other recessions and talent times of market. You know, turbulence will be seen as just another one, perhaps one would a slope downward as a little sharper, but nothing that fundamentally alters the view that technology is changing our society, and that technology companies that are driving that change will be valuable, and that there are many of more of them to come in our portfolio. Companies like Stripe and brex uh and uh, those are some of the public
stocks that are ye combinator companies. But um, you know, the Stripes, the Brexast, the Fairs, Gusto, it's that are there are a lot more amazing companies that have great businesses, uh, that you know will continue to be disruptive and will continue to be really amazing assets for investors to own. Well, it's interesting you mentioned Stripe because obviously they've been in the news for sort of an internal revaluation. Paul Graham, the co founder of hy Combinator, has this essay called
Default Dead, Default Alive. Who do you think survives? Who do you think dies in this downturn? And how is that informing your investment decisions. Now. So this may surprise you, but almost every company private company that you know, has a reputation you know that people on your program will
have probably heard of. I think they all survive. Uh. And the reason is the markets have been so frothy over the past few years that almost every promising technology come in the mid to late stages is extremely well capitalized. I mean, these are companies that have raised hundreds of
millions of dollars. And yeah, there have been some downsizing and some adjustments, um, but in most cases those were done not because the companies were under dress, but because they said, hey, this is an opportunity for us to right size the business a little bit. Given the economic climate, everyone will understand and lengthen our runway. So I don't expect for you know, mid to late stage private companies,
for there to be a blood bath at all. I expect modest belt tightening, but almost all these companies are going to just continue to invest in growth. Interesting that's a more optimistic view than we've heard. Um Ali Roghani, managing partner at y Combinator, also the former CFO and CEO of Twitter. Great to have your thoughts. Here on the show thank You, Thank You, Great to be with you. Apple is arguing that is now a major force in healthcare.
The iPhone maker is published and almost sixty page report outlining all of its health features and partnerships with various medical institutions. Though the Apple Watch dominates the market, the device hasn't always gotten new health features as quickly as its competitors. Bloom, we're smart, German here to tell us, spart Mark tell us. But what is in this report? So this is a nearly sixty page report, and I
rarely see Apple do things like this. Typically, when they want to tout their initiatives, they make a new website for it, they put out a an event or a video of some sort. But this is more of an academically focused report. It's not for consumers. That really showcases all the health and fitness and workout related features you know, as we all know and use across the iPhone, of the Apple Watch and the rest of its ecosystem. It dives deep into how all the features work. They talk
about some of the research studies. They have sleep studies, they have walking studies, they have heart studies, and how all of that works. Together complete in concert with different medical institute sans and medical partners they have, you know, globally to produce new features for their products. That's what I thought. I don't I can't remember a time that Apple has done this previously. You know, what does they
say about their plans for the future. I mean, that's what we want to know is how will you know health tech increasingly be integrated into all of my Apple devices? Yeah, it's fascinating. I think that health functionality will really spread to all of Apple's future products. I mean, don't forget the air pods, upcoming virtual reality headset, future augmented reality glasses. You're gonna see some health integration probably in all of
those products at some point. Maybe one day your air pods to be able to tell you your your heart rate, right, or your body temperature. Maybe you'll have some health workout functionality related to Apple's headset, just like Meta has with its oculus move feature on its VR in a R headsets. Right.
So the Apple future of health is very strong. This year, they're going to add a body temperature sensor to the Apple Watch, to new Apple Watch models with that feature until if you have a fever or other things going on. There'll be new women's health features tied to the new
hardward this fall. Specifically, Apple wants to release a blood pressure feature for the Apple Walk, something that Samsung and others have had, but of course Apple needs to get in that space two and they're also very invested in an R and D project to bring blood sugar monitoring to the watch eventually as well. Buying Peloton or has Apple purposely let that ship sail? I think the ship is sailed for sure on Apple buying Peloton, unless it gets to an absurdly low price and Apple finds a
way to really integrate it. I don't think Peloton is necessary to Apple. If Apple wanted, it can start producing bikes and treadmills at a far cheaper cost than what it would take to buy Peloton, unless there is a fire sale at some point. I also think they'd rather integrate their features into their existing ecosystem rather than add that really expensive business that fitness hardware would be all right, Mark German as always covers Apple and Peloton for us.
Thanks Mark, But there was a single thing that might say stranger things. But again we're talking about, you know, losing one million instead of losing two millions. So you tough in in some ways losing a million and calling at success, but you know, really we're set up very well for the next year. Well come back to Bloomber Technology.
That was Netflix co CEO Read Hastings on the Ernies call, I'm want to get to the Netflix relief rally after it over promised on subscriber losses for the second quarter. James CHOCKMK, partner at Clockwise Capital, joins us now to discuss. James, good to have you back here on the show. So turns out over promising in this case was a good thing. But how good a thing? How confident are you that Netflix can continue it cut its losses. I think it's gonna be difficult. Um, you know, they have a lot
of battles to contend with. But I think when you look at the stock and the reaction, you know what a difference, you know, a quarter or two makes, you know that we're seeing a big shift in the tone of the market. I mean this Netflix was a company that only treated on subscriber growth. What's the sub number?
What's the sub number? You know that that's pretty much was the singular metric that people looked at now you had a decline in subs and a downward guidance to the third quarter subs and that the third quarter downward outlook uh so in the stock. So there's clearly a shifting sentiment and a reprioritization of what the metrics relevant metrics are and it's increasingly looking like it's going to be monetization over the absolute number of subs. So here's
the question. The markets took a turn in part because of Netflix big loss in subscribers three months ago, which was totally unprecedented. Do you think that this shifting sentiment will buoy markets through earnings over the next six weeks near term? Yeah, absolutely, I think I think that the sentiment has become so bad and the bar is so low that you aren't going to see, um, some some level of relief. Obviously we're not out of the woods as it relates inflation what the FED is going to do.
But I do think that these companies have have come down way too much, and I think that what you're going to be seeing is an increasing appreciation for mean
reversion in the growth rates. And what I mean by that is that you know, these companies pulled that companies pulled forward so much demand during COVID and then you had this growth drop off the last couple of quarters where it looks like, is this a structural change in the growth rates where demand is actually slowing, or is this a mean reversion where we're just going to revert
back to the original growth curve. And I think what people are investors are starting to increasingly areciate is that we're just coming back to the original growth group and that these companies can and will grow um the way that we thought before COVID, and in some cases like Amazon, like Microsoft, um like Apple, potentially even better uh than they were before COVID. And as far as Netflix is concerned,
you know, this is still a company. You know, the advertising is not easy, and you're contending with juggernauts like Amazon, like Facebook, like Google. And when you think about the level of differentiation you have as a service versus them um in in order to targeting capabilities and whatnot, it's not that much. You know, we consider we put Netflix in the bucket of old media and then likely should
be valued as such. Interesting, So, if the streaming wars are turning into an ad war, who wins you know, obviously there's Netflix, there's HBO and Disney Plus that are also experimenting with advertisers. And then on the other side you've got Facebook and Google, which has been doing this
for a really long time and snap. Yeah. I think that the big guys Amazon, Apple, Facebook and Google will continue to command great share because of the fact that they are platforms um which which provide great stickiness for their customers and great targeting capabilities from the data that they collect. But we do think that it can become increasingly fragmented as as other outlets explore their advertising um capabilities,
in a word, to better monetize their businesses. But ultimately, you know, we don't see We see the likes of Amazon gating a disproportionate share and Netflix having to contend with everybody else, And when you think about the data that they have, you know, how is it much more differentiated than what a linear television station has. All right, interesting view there. Um, we will of course continue to cover all of this. James Chapman, Clockwise Capital, thank you
for waiting. Meantime. Phase Clan is one of the biggest e sports companies in the world, with eleven competitive teams in games like counter Strike in Fortnite. The company has officially started trading on the NASDAC Phase Clan a lifestyle brand, a gaming lifestyle brand that's now extremely popular with younger audiences and includes big personality streamers and content creators like Snoop Dob, who's also on the company's board. CEO Lee Trad joins us now live from the NASDAC League. Good
to have you here on the big day. You know, everybody thought that the go public window has been slammed and sealed shut for the foreseeable future. Why did you decide to try to rip it open? Well, first of all, thank you, Emily, I really appreciate you having me. UM. Big day, great day for gaming, great day for gen Z UM. And you know, you know, talking about gen Z, the the timing is actually prescient because gen Z is actually rising to power, not only as a cultural driver
um like all youth youth generations are. But there are clips and there are clips in your drivers as just culture into changing how we transact, UM, changing how they consume. And by the end of the decade, they're gonna have thirty three trillion dollars of spending power. And so what we're seeing is this ascendency of gen Z. I think that we're, um, we're we typify that ascendency as the first gen Z native public native company to go public. Um and so I think I think the timing feels perfect.
Shares did drop some, you know, or so, I mean, do you still think the timing is right? Uh? The timing is definitely right. And the reality is, uh, this day is about the launch of the of the first gen Z native company to go in public. It's not about the market conditions to a We're building value for the long term. You know, we're check in with us at twelve months, at eighteen months, at twenty four months.
We're building value for our community, for our shareholders, um and uh, and we'll just be building for the long term. The phase is at the intersection of some really volatile industries including a sports and web three. You know, talk to us about what makes this uh you know, sort of cocktail this place where you sit in business so unique and potentially valuable. So we really do sit at
the at the intersection of technology and culture. That's really what we did starting in right, gaming sits at at the intersection of technology and culture. I don't think people understood that about gaming, that gaming is culture. UM. Gaming culture has become youth culture overall. UH. And we've been pioneers at that, and our plan is to continue to pioneer. And a great example of that is Web three, which also happens to be led and driven by culture at
the moment. And so we've been positioning ourselves amongst all of the blue chip companies and brands within Web three, and we see our opportunity to bring the massive gaming community, which is not yet in Web three. We see the opportunity for us to build that bridge and usher in that massive gaming audience, not only our five million plus follower network, but the gaming community at large into what will be UM really a colossal part of our future.
That that frankly will will disrupt UM not only what you've seen so far and things like like art but UM, but Web three is going to impact commerce overall. UM. So, so we're positioned ourselves to to bring our generation into that and UH and we and we see that as an amazing opportunity for us. What don't investors understand yet about how gen z is is really going to change
things and how to capitalize on these trends. So I think what we've seen so far is the way they consume content, right, They've they've moved away from the traditional the traditional spaces of content heavy on YouTube, heavy on Internet, heavy on Twitch, And that's really the beginning of the change. That's not the totality of the change. Gen Z just demands something different UM from the brands that they support. Gen Z wants to be treated as a community, not
a customer. At this point, I hesitate to always use the word customer because it almost feels pejorative from the gen Z lens, and I think that that the majority of of traditional companies don't really understand it. They don't understand that see change. They don't understand that gen Z is rising to power in a different way. You know again by by the by the end of the decade,
to have thirty three trillion in buying power. Another another sign of this is that this this election is where we're seeing the first gen Z candidates for Congress UM and so there's a massive sea change coming. I think a lot of companies are are are not quite prepared for the amount of change that's required to treat their their customers as their community. UM and you know we
speak the gen Z language natively. Um, we've been leading gen Z on on the culture side and we are and we're continuing to lead them on the commercial side as well. Alright, Lee Training Phase Clan CEO. We will continue to watch y'all. Thanks for take off. Thank you. Meantime, Tesla Arties call still underway, Musk stating that the company has the potential for record breaking output in the second half of this year. Again, it would have to be
record breaking if they're going to make their own targets. Plus, he says, the Tesla cyber truck is on track to debut next year. We're gonna continue to listen to it, listen in and bring you the headlines as we have them coming up. Sam Bank and Freed's growing empire. We're gonna talk about the crypto billionaires spending spree and his intentions behind it all in the middle of a very coold crypto winter that is next. This is Bloomberg at
the very least. I want to be doing something that positive, like with the making money perk, like like a I want to be good actor there. It is time now for our Crypto Report as we take a look at one of the most prominent figures in the industry, and that is f t X founder and CEO Sam Bankman Freed. Over the span of two weeks in June, the crypto billionaire bought two companies, propped up the crypto platform black Fly, and tried to save another, Voyager Digital with a large loan.
In all, he committed about a billion dollars all in the midst of a crypto rout that has wiped two trillion dollars in market value out in just eight months. Let's bring in Hannah Miller now for more on today's big take. Hannah, thank you. It is just fascinating to see, uh, you know, just how ambitious and seemingly successful ASBF has seemed to be. But there are competing views of him within the industry. Is he more of the messiah or
is he a shark? Yes? No, you have people calling Sam Bankman Fried the patron saint of crypto, that he is bailing out the industry, coming swooping in as a white knight to save struggling companies. And then on the other hand, you have people really seeing him as a robber baron consolidating power and control over the industry. So as we have spoke at our Bloomberg Crypto Summit this week, I want to take a quick listen to what he
had to say. Certainly, the asset you know, price declined a strong sign that in crypto and Frankling a lot of fintech like there, like things were way too late on use cases, and that there's a lot of hand waving going on both on use cases and on sort of financial modeling. That was suspect tell us a little bit more about his view on this market downturn. I mean, clearly he is more optimistic than the markets would suggest. But busy right. Yes, No, he puts protecting customers above
all else. Um. Within this industry, UM, he is looking to swoop in, help people out. He believes that this is an industry with extremely strong long term prospects. Um. He while he sees opportunity in terms of buying up companies bailing out others. UM. He thinks that by helping these companies you can ensure that customer's assets remain safe. Are you expecting his acquisitions free to continue? What's next? Yeah, So we know that f t X and f t
x US is both these companies are focused on raising funding. UM, we know that they're in talks with people. That's pretty unique because venture capitalists have really cooled down on the industry um within the past few months in light of crypto winter. So it's pretty fascinating to see that he still has a lot of compidence he can raise funds at high valuations. He's also eyeing assets at distressed companies
and bitcoin minds for acquisitions. Meantime, you've got Elon Musk, who you know, at one point was also considered a sort of crypto savior, uh, coming out and saying that Teslas sold seventy of its bitcoin purchases turned that into cash to improve its cash position. I mean, do you expect something like that to have, you know, a continued negative effect on the industry or can the optimism of
bulls like Sam Bankman Freed went out. Yeah, I think that Sam Bankman Freed's support for the industry shows that, you know, there are people who have confidence in it. He's also has his eyes outside of the crypto industry.
He's talked about um, you know, even choked around about buying Golden Sacks, and we've also reported that he was eyeing a potential takeover of Robin Hood, so he sees mainstream finance blurring with crypto and while big names like Elon Musk may be dampening a little bit on their enthusiasm for the industry, it seems like those within it have the competence to branch out beyond it and are
still competent about so long term prospects interesting. All right, Well, I'm sure there are many more twists and turns to come. Bloomberg's Hannah Miller with this week's big Take, Thank you. The pandemic has of course changed how we look at healthcare, and the digital health landscape was a booming industry through COVID nineteen. But where are we now. Let's take a look at the future of health tech with Dina Shaquire,
a partner at Lux Capital. Obviously, there's been a lot of optimism about the future of healthcare technology, in part accelerated by the pandemic, but we've also seen some of these companies like cerebral Um a string of other companies that have had layoffs coupled with this downturn. How optimistic or how bright is the future really? Bottom line is, I'm still incredibly bullish, as are we at Lux healthcare is fundamentally recession proof. Human health will always continue to
be a big sector. Humans are not going anywhere anytime soon. We'll continue to give birth, will continue to get sick, and we'll continue to die. And while the pandemic may have accelerated growth in certain areas, it's also sort of opened up a watershed of opportunity for the key stakeholders in the industry will have no choice but to undergo a digital transformation. How is the downturn impacting the industry impacting valuations? You know, I'm sure companies are struggling under
the pressure of this. Absolutely, there's no denying we are not immune from the macro at all, and certainly health tech in particular, given it as very services oriented, is keenly affected by it, particularly at the later stage. So we're seeing there's still a massive influx of funds that venture funds are raising focused on healthcare. In fact, SPB just released a report this morning documenting that, and I think it's on track to be the third highest year
of venture fundraising in history. There has been a slowdown in terms of dollars deployed towards healthcare, So it's the latest stage companies in particular that will see it's not quite the fundraising environment of one. Apple just came out with unique for Apple, a sixty page report detailing its role in the health tech industry. Is Apple going to own this industry as a device maker and an operating system? You know, this has always been a big question for healthcare.
I t is it going to be Apple? Is it going to be Google? What rolled us face of play? I think it's no denying and especially now with the Apple watches that we're all wearing that there is a massive consumer trust in Apple and iOS and that it will be very interesting to see how providers actually step
up to integrating this data with their e mrs. I think if they can bridge that gap, there could be something very interesting and last you know, and I know this isn't necessarily a quick question, but obviously the overturning of Row versus Wade, how does that change you know, where you're thinking about putting your money and your view on this industry where you FORRANTO human's health. You know, of course we've been long term investors in women's health,
and fundamentally women's health is population health. This overturning has been a very sad moment, not just for women but for all of us. And it's also been a moment where employers are stepping up to the table where we've seen major companies taking stands funding the care of women to to cross state lines if they need to to
to receive the care that we need. One of our companies may even clinic is already served, being nearly half of the Fortune fifteen companies, and they've actually seen an increase month over month in terms of the inbound sales opportunities for companies who want to do more for their women and for their families, who want to address the maternal health crisis that we face in this country where women today are percent more likely to die in childbirth
than our mothers before us, and that's three to four x if you're a black or a woman of color. CEO of Maven, which obviously one of your companies, was just on the show and she talked about maternity deserts in these pockets of places across the country that just don't have at a quick care Udeo Shaquier Lux Capital. Always great to have you here on the show. Thank you great to be here for stopping by UM We've
been continuing to listen into that Tesla earnings call. Elon Musk has been talking about his decision to sell the majority of the company's stake in bit coin SEV. Take a listen to what he had to say the recently sold a bunch of hed coin hold agent is that we were uncertain as to when the COVID lockdowns in China would alleviate, so it was important for us to maximize our cash position given the answer of the COVID
lockdowns in China. Musk also said he's open to increasing the company's bitcoin position in the future, and he said he's holding on to his doors and that does it. For the edition of Bloomberg Technology tomorrow, we're gonna be speaking with a T and T CEO, John Stanky. That'll be a big one. He'll be talking to us about earnings in the state of the wireless industry. And as always, don't forget to check out our podcast wherever you get
your podcast. I'm Emily Chang in San Francisco. This is Bloomberg