Twitter's AGM and the Texas Shooting

private messages. We will bring you the very latest as we learn more about this horrific turn of events, plus lessons learned from Twitter's annual shareholder meeting, investor's voicing concerns about Elon Musk's blooming takeover, and just after the meeting wraps, Musk files to change the balance of equity and debt in the deal. Our own at Ludlow will join us live from the ground, and Meta and Amazon holding their

annual meetings as well. It's the first one for Amazon CEO Andy Jassey, how he addressed growing concerns about worker safety at the company's market cap threatens to dip back below one trillion dollars. All of that in a moment, but first let's get a look at the market, stocks climbing after a volatile trading day and the tech having NAZAC one hundred outperforming blooming. Waga Gupta has the latest Whittica.

Why the turn from yesterday, Yes, Emily is quite interesting that we do see stocks finishing the day in the green, and as you mentioned, NAZAC one hundred really outperforming here and a lot of it, Emily, down to some of those heavyweights you apple your Amazons in particular, leading that index higher. But I will point out that a lot of the impetus, that momentum really started gaining after the

Fed minutes. We're starting to see traders kind of pairing back their expectations of just how aggressive the pace of rate hikes. Maybe that's on some of those owth fear So you didn't see much change in that tenure year, but the two year yield, which is more sensitive to Fed policy changes, just ticking up a little higher. And then I do have to touch on end Video. They just had their earnings out. You see that stock down as some seven percent in after hours trade. They mere

the analysts estimates. They've been expecting some robust profit and growth. But this stock on a year to date basis down some forty or so. I mean, it's quite surprising. Just back in November we were talking about it being close to a one trillion dollar market cap valuation. But this, Emily, is a story broader in the chip space. If you think back to last year, we saw chips surging off the chip shortage, but what we're seeing this year is

that momentum has really started to wane. An end video mentioned the key issue there really about the supply chain issues from those COVID China lockdowns, but it's also about valuations, Emily, because investors have been shunning some of these high pe stocks that we've seen in the text based particularly in this chip makers. And really I do want to get to these annual general meetings are happening today, many of them intact, Twitter, Amazon, and Meta. We were all following

these What were key takeaways? Yes, Emily, we'll staff with Twitter that one very closely watched a lot of the buzz because of course the drama surrounded by the Elon Musk takeover drama, but that vote actually set to happen at a later date. We did get the news the founder Jack Dorsey stepping down off the board and a key director also failing his re election bid. Let's move it on to Amazon though, because the shareholders rejecting all of the proposals that were in place to make the

conditions better for the the workers. This company has come under a lot of scrutiny because of those conditions for workers, as we know, and also the stock split being approved by shareholders at twenty two one that's set to take place in June. Emily all right, Rodko Gupta, thank you for that round up. Meantime, were learning new details about

the deadly and devastating shooting in Uvaldi, Texas. Texas Governor grab Abbott saying the eighteen year old gunman who killed nineteen children and two teachers at rob Elementary School posted about his plans on Facebook in the minute before the attack. As of this time, the only information that was known in advance was posted by the government on Facebook approximately thirty minutes before reaching the school. The first post was to the point of he said, I'm going to shoot

my grandmother. The second post was I shot my grandmother. The third post, maybe less than fifteen minutes before arriving at the school, was I'm going to shoot an elementary school. Facebook spokes versus Andy Stone. However, verified and direct replies on Twitter that the messages the governor described were private one to one text messages that were discovered after the tragedy occurred. I want to bring in our Bloomberg Technology executive editor Tom Giles to discuss, so what exactly do

we know about these messages. There is a big distinction between a public post and a private message, absolutely major distinction, and what a horrific set of developments. What we know is that once when these things happen, there's always a question about what roles social media played in either broadcasting them, glorifying them, Was social media involved in any way? Could

this have been prevented? Those questions always arise. In this instance, what Greg Abbott said was taken to mean that somehow he was publicizing his intentions, that he had made this in a public setting. When you say post on Facebook, that makes it sound like he's putting it out there for everyone to hear, suggesting that maybe could this have been prevented? Maybe was Facebook in some way involved in

this terrible way. Quickly Facebook comes out and says, wait, these were private one to one message is not the kinds of things that could have been seen by the public. We are trying to get clarification from Abbott's office as we speak to determine what he meant by that. Was he referring to some public or semi public part of Facebook, maybe in groups? Was there something out there that we could have seen? Now, none of us has seen anything

publicly on Facebook. Obviously that would be blasted all over social media. If somebody had used the public news feed on Facebook to talk about this kind of thing. We

don't have any evidence of that. We're seeking clarification from Abbott's office as we speak, but thus far Facebook has been like this was private one to one ket Can we confirm though, that these were on a Facebook platform private because Facebook doesn't have text messages if you will, there are direct right, there's the direct there's m there's WhatsApp, there's the kinds of communications that you can use you can use Instagram for But how much of that does

does Facebook have access to? Now? In a case like this, if the shooter or the alleged shooter was a Facebook user, Facebook would have justification for going into his private messaging, but we don't know which platform on Facebook. If it was in fact a Facebook platform that he used well. And Andy Stone also says in this Twitter message that they are coordinating cooperating with law enforcement in their ongoing investigation.

So Facebook is now somehow involved in this investigation. Um, what do you make of the way that Facebook is communicating this though through direct replies on Twitter not maybe put a statement statement? I mean will in fairness, in fairness to Facebook, I mean in Meta right, Twitter is an official platform, I mean it is recognized. As a way of getting the statement out there, I would like Facebook Meta to be more clear about which messaging platform

they're talking about here. And remember, you know, in cases like this, law enforcement will will want to move very very quickly to get any private communications. They use power of subpoena, they use court orders. They're able to get access to these kinds of things that ordinarily big tech

does not want to share. But in this instance, obviously Meta has a great interest in helping law enforcement and the greater public get to the bottom of how its platform may have been used, and incredibly important that we do get to the bottom of it, given the gravity of this situation. Tom Giles, our executive editor, thank you so much for sharing we know now with us Jack Dorsey is off Twitter's board. That is just one of

a few developments from Twitter's annual shareholder meeting. His departure was announced earlier this year, but it's still notable since it is the first time since two thousand six that he has had no formal role at the company. No new details on Elon Musk's takeover deal were shared, but his shadow loomed large. CEO Paragua Agrawal opened his remarks by addressing concerns about misinformation and bias. More broadly, we're constantly improving our product, our policies, and our processes in

order to earn more trust. We believe Twitter is a place for different voices and perspective to be. Our rules are enforced objectively on content and accounts, and our policies remain neutral too political identity and ideology. Our own and bloodlaw joining us now has been following the meeting all day and no vote ed on the Elon Musk deal. But just how big was his shadow over this meeting today? Yeah? You know, shareholders found a way to get the references

in there, right. There was one proposal from our Junia Capital, which you know really well, and on having a new board member with a high level of expertise in human

and civil rights. And the point that Natasha Lamb and our Juna made was had Twitter had a better track record in human civil rights, they'd have a better track record on free speech and freedom expression, and we would not be where we are with the world's richest man trying to take the company private to fix the issue of freedom of speech, which of course is one of

the big rationales behind his decisions by the company. He says, Now, just after the meeting ends, Elon Musk files a new uht D where he boosts the equity portion of the deal but deuces the dead portion of the deal. Can you explain why this is significant? Yeah, it is significant. So where the equity portion is now at thirty three point five billion dollars, he's essentially removed altogether the margin

loan component. That's significant because the margin loan component had the loan to value ratio of so Elon Musk had to stump up a big number of Tesla shares to meet the dollar value as collateral. That's gone. He in turn currently concurrently is adding another six point two five billion dollars of exit financing. But as part of the filing, we learned he's talking to existing shareholders about rolling their public shares into the private entity, something he'd stated previously

he would do. Jack Dorsey is among those shareholders that he's speaking to. Significant because it essentially de risks the entire thing, right and interested to hear or your next guest has to say on that point. But it will be also interesting to see who he brings in because he's talking about even though he's added at six point two five billion dollars Vexty financing that he's backing, who else might join this and really interesting names already there right,

Larry Ellison being one. The big question I have is like, is this just Elon Musk searching for cash or are the strategic elements here in terms of the people he's bringing in for a new look private Twitter. Interesting, Okay, at Ludlow outside Twitter headquarters there in San Francisco. I want to bring in that next guest now, Ross Gerbert of Guru Kawasaki CEO and president. They're also a Twitter shareholder. Look, there was no vote taken on the Musk deal today, Ross,

but if you could have voted, are you four or against? Oh? I mean I can't wait for it to happen. I think Elan is going to do a phenomenal job fixing this wonderful asset. So have you increased your Twitter position since the sell off and are you continuing to boost it ahead of this deal? Absolutely? Absolutely. The fact that people don't believe that Elon is serious about taking this company over just proves how many people don't really understand

Hellan after all these years. So he's dead serious on completing this deal. Um, and it is at a price of over fifty four dollars and there is no renegotiation going on, and so you know, I very much believe he's going to complete the deal. So look, some shareholders are excited like you. Some shareholders are skeptical, Natasha lamb As I've mentioned, very skeptical about how Elon Musk will handle free speech, human rights, civil rights issues. What do

you think about those more nuanced and very complicated issues. Well, I think that it's silly to think that Elon musk is new job is going to be the arbitrator of free speech on Twitter. That's not his call in taking over the company. I think what he's trying to do is put in a management team and a transparent system so that the users of Twitter fully understand what in

what isn't allowed on the platform. What I think most people are upset about, including myself, with Twitter, is just the sort of arbitrary nature that decisions are made and the lack of transparency. And I think by bringing transparency, which He's already been pushing really hard on Twitter, at Twitter to get more transparency, I think will be very beneficial for the users of Twitter. Now, interestingly, we heard parag agerol weiterate the company's mission to serve a diversity

of views. But earlier this month, Elon Musk announced that he will be voting Republican. How does that strike you? Is that good for Twitter? You know, Elon and I are in the same camp here. We're both ex Democrats, and I'm never going to be a Republican because I can't stand them. But but you know, I'm I've become an independent voter, and I think what Ellen is saying

is true. I worked very very hard to get Joe Biden and as president, and I'm a very big believer in the values that the Democrats represent, and they've achieved nothing. They've achieved none of the agenda that they set out to achieve, and they've really disappointed big supporters like myself and especially entrepreneurs who they've attacked and constantly saying that

we don't pay our fair share when we do. And so it's just they've pushed the do you know, especially successful entrepreneurs of the out of the Democratic Party and and I'm one of them too. Well, speaking about a big time entrepreneur who is now out at Twitter, Jack Dorsey, the era of Jack Dorsey is officially over. We knew this was coming. No formal role at the company now, but you know, we can assume he will still have some influence. His tweets will carry some influence. What do

you think is the significance of Jack leaving? Well, I think he'll be back. I think he'll be back. Well, I think he's going to I think he's in with this Zelon stuff. I mean, I would be surprised if he's not working with Elon at all. Um, he seems to be on Twitter, you know, sort of jumping on the arguments that Elon's are making and seem to be

defending Elon's positions. Um, So I'm not really sure what's next for Jack Um, I think he's really focused on Square, which as a Square shareholder, I want him to be, and I think he'll play a role in the new Twitter. Meantime, silver Lakes Egon Durbin didn't get enough votes. Shareholders did not re elect him to the board. What's your reaction

to that. Um, it's hard to understand, you know, why certain shareholders are on the board and not on the board, especially when they have large states in the company where that might have changed. UM. So, you know, I find that to be significant because silver Lake is a major player. But I think it has to do with the changing nature of what's going on. So there might be some conflicts of interests involved as well. Maybe they're involved with the new takeover, so they don't want to have a

conflict by having somebody on the board. So it's just really hard to tell why these moves are being made. Meta also held its shareholder meeting today. Peter Till no longer on the board there, so that's also the end of an era. He's going to work more on the Trump agenda. I'm curious for your thoughts on Twitter versus Facebook.

I know you don't you don't you have a miniscule position in Facebook, you know, also versus Snap, especially given social media stocks getting pummeled and Snap coming out saying they're gonna miss their guidance, right, And We've spent a good day looking at Snap and I have friends that Snap, so you know, I was trying to figure out what the hell is going on there, And these are three different stories and I think that they're playing out differently.

So Snap is just getting eaten by TikTok. You know, there's not much more to it. TikTok is like a vacuum of young people's eyeballs and it's just Snapchat hasn't been able to compete and there's nothing more to it

than that. Meta and you know, Facebook and Instagram are also suffering from the TikTok thing and the Apple privacy changes, which are really affecting Instagram and Facebook um and their targeting, but also a lot of ad you know, people are saying, hey, you know, you need to boot some of your instament grand budget to TikTok, and that's what's happening. So that puts pressure on Facebook and Meta not to mention, you know, there really hasn't been any innovation there in a long time,

and the younger generation isn't using Facebook. And then with Twitter, it's really, to me the news, so it serves a completely different demographic than the Snapchat, Instagram, Facebook demo, and it really serves people who are looking for information, and therefore, to me, it's a much more powerful and valuable platform. And in fact, Twitter is probably the most valuable you know, information platform you know in the world, and if you look at the depth of the global leaders and users, um,

there really is nothing like it. And as an investor, I I can't even imagine trying to be an investor and not used Twitter. So I think Twitter has a lot more intrinsic value than the other platforms. All right, Les Garber, President and CEO of Gerbert Kawasaki, always love having your views here, Ross, Thank you. Coming up, Twitter, as we said, not the only one holding its shareholder meeting today, Meta as well and Amazon. It was Andy Jase's first as CEO. Will get an update on how

it all went down. Next. This is Bloomberg Amazon also holding its annual shareholder meeting, the first for CEO Andy Jase. I'm joined now by Bloomberg Spencer Soaper, who of course covers Amazon for Spencer, what were the big takeaways and Andy Jase's responses to some of these resolutions, Well, the UH a big one. There were several regarding worker treatment and Jesse really had to respond to that and just

these high injury rates. Amazon was hiring a lot of people through the pandemic, and Jesse was trying to explain that there are a lot of them are new to industrial work environments. Therefore injury rates climbed even though Amazon made the pledged to UH, you know, to make it you know, the best place to work and to to really target reducing the injury rates. So he's definitely like trying to buy some time there by explaining the unique

circumstances around the pandemic. Then there was also an advisory vote on pay and it was a big deal because you have Jasse, who was promoted into this role as CEO, is you know, not not someone who built the company himself, but was you know, promoted into succeed Jeff Bezos. Um. You know, some influential advisory firms saying that Jesse and to other executives, their pay is not linked strongly enough

to company performance. They want to see if they're going to be paid substantial amounts of money that it better be more more directly tied to the performance of the company. So quickly on that, you've got Amazon shares dipping nearly below a trillion dollars UH in market cap. How concerned our shareholders about that? Quickly? That did come up uh and Jasse addressed it. And one of the questions shareholders shareholders had was he know, you're you're firing in so

many directions, You've got so many things going on. You know what if you're more focused with that make the company more profitable. And Jesse's response to that was, you know, we'll look at we had Amazon Web Services and when it was in its gestational period and infancy stage, you know, people were very critical of that or had a lot of questions about that sort as a big gamble, and we turned into this huge, you know, multibillion dollar business.

So I guess he's trying to make the case that you can't afford to not invest in things even when even when profitability is down. All right, Bloomberg Expense or soaper, thank you for giving us the round up on it. Jesse's first a g M Welcome back to Bloomber technology and Emily Chang in San Francisco. Get back now to the markets and hone in on social media stocks where

it could take it away. Yes, Emily, well, I'll start off with the broader markets, which we did see moving higher today, and it was now like one that out performed. It was some of you a heavier weight. It's your your Amazon, your Tesla, and even your Apple pushing that index up higher today. And that impetus that really started to come out after those FED minutes. It was this idea that maybe Fed policymakers one as aggressive as the

market was expecting. You didn't see much changes in the ten ye yield, but the two year yield has more sensitive to FED policy changes. That did take just a touch higher. And I also point to the vix that is ak that big age. This was lower today and this is as we get a bit more of a

risk on field today. And speaking of risk on you mentioned it, Emily, those social media stocks that plunged yesterday, we are seeing them get We saw them get a big bid today, Snap actually bouncing back up some nearly eleven percent. But we know that these stocks behind me, I mean, perhaps investors thought they were a little bit oversold yesterday and they're swooping in on some bargains, but on a year today basis, they've all been down in

the double digits. It's concerns of a slowdown what that means for ad revenues. But it isn't Emily just social media companies that are stuffed ring this year. That's represented by the orange line there on my chart. They're down some thirty seven on a year to date basis, but it's also your Spack Index, it's also your I p O Index, it's also the r g TF and then

that's that Golden Dragon Index, which houses Chinese tech. Arguably has its own regulation challenges, but you can see clearly investors shunning some sort of speculative or more risky assets and honing in on some of those relatively more safe place Emily alright, Ritica, thank you. And while we did see that slight rebound in social media and tech stocks and general, big concerns still looming about the future of digital ads. Joined now by Mark Mahaney's senior managing director

and head of the Internet research team at evercre Mark. Yes, Snap bounced back a little bit today, but remember they lost for yesterday so regained about about ten percent of that today. You know, how concerned are you about Snap? I think I share most of the market's concerns. The open question is how much of this is mac growth, which is impacting all which therefore impacts a whole bunch of these names were particularly ad names, and how much of this is Snap specific. And I guess I started

off thinking this was largely macro. I was taking the company at at face value. Um, But you know, there is a track record here and this company has had a couple of surprises along the way, including in the September quarter last year when they had said they wouldn't have any impact from Apple and then they said they did. So there's a bit of a there's a bit there's a greater credibility issue here at Snap. Now. I assume

that they are seeing a lot of macro pressures. This company has a lot of exposure to brand advertising that would be the first to get cut in a recession. They also have substantial exposure to Europe, which I think is a reasonably one could reasonably assume that's going to see pressure first before the US does. So a lot of what they're seeing probably is a broader read due

to add names. But you know, this is a couple of times that this has happened, so maybe it's not terribly surprising this doc gets taken down more than the other ad names. So how much of this could be TikTok eating snaps lunch specifically? Look, you you're asking the right question. If it isn't mackerel, what could it be? Or if in addition to Mackerel, what are the other

could what could other factors could there be? Um, it could be TikTok, It could well be ad budgets that slipped over to um Snap and awake of the Apple privacy changes slipping back to Facebook. Um, it could be additional Apple privacy changes. I mean, there's a serious series of things that Apple could still do to kind of tighten screws on the add ecosystem. That could be having an issue on on Snap. And then there could just be that this company is much more exposed to brand

advertising than the market realizes. And again that's the probably the part of Internet advertising in a in a in a downturn, that gets hit first, and what would get had black hit last? With the performance marketing channels of course, Google, but a lot of Facebook that would be hit last because it's more performance marketing based. So anyway TikTok's an issue, There's a couple of these other things that could all

be kind of piling up on Snap. Now it's just us surprised to have that guidance change in just a month period. So it's probably macro, but it could well be a few other factors. So there's a big question what this means for other social media companies, even though they're all in the middle of some fairly different narratives. Twitter,

for example, just wrapping their a g M today. You know, no vote on Elon Musk, but of course, you know concerns excitement about the deal looming large over that meeting today. You know, what's your take on what direction this is gonna go? We just saw Elon Musk raised his equity portion of the deal. Well, I assume he's not going to walk away from the deal. I assume that he'd

love to get a lower price. Whether he can get it or not will really come around to whether those shareholders that he talked with and I think convinced that he would be a good fire of their stock at with a price, whether they would be really still willing to sell it to him at forty five or forty or some lower price. And I don't know who has the most leverage in that in that environment. Um, maybe he does. I assume he really still wants to have this asset, that he really doesn't want to waste a

billion dollars. And uh, of course I would take Twitter's shares down, but I think at the end of the day, Elon Musk wants to own Twitter. So my guess is that this gets negotiated, maybe at a lower price, or we're gonna be spending a lot of time in courts for the next year, which would be unfortunate for everybody involved. And how insulated do you think Twitter and Facebook are from the problems that Snap is facing or are are they really in the same boat? Yeah, Emily, I don't

think they're insulated at all. But I'm sorry, I don't think Twitter at all is insulated. I think Twitter has got relatively material exposure to Europe, and uh, it's very heavily into brand advertising. Again, that's probably the weakest part of the Internet advertising ecosystem, and that's seventy of Twitter's total revenue. So if that's what's being hurt at, and that's what's taking down Snap. It would be taking on

Twitter in dro of. I think there's also probably gonna be a lot of dislocation and Twitter, well, this was a hostile takeover. What do you expect? I mean, you get you disenfranchised, your disincentivized, that's probably the better word. A lot of the employees you've had turnover, a lot of uncertainty over you know, whether people are going to keep their jobs. So of course, almost certainly it's going to lead to poorer or less or suboptimal execution, although

that's gonna pile up and probably hurt Twitter's fundamentals near term. Anyway, this doesn't help what the issues that Snap talks about. If in fact they are seeing loss of ad budgets to Twitter, if they're seeing macro pressure on their display advertising. Twitter is going to see all of that. Facebook much less so, but they'll see a smidgen of that, and Google the least of all those. But just remember, go

through these major recessions. You and I watched this. Google went uh growth rate crater to only three percent year of rear during a great financial crisis, and then during the COVID quarter it went negative. So Google is not immune to you know, full blown advertising recession. Well, and let's talk about another big tech company where you know, the gains from the pandemic have been completely erased, and that is Amazon. We're seeing Amazon's market cap get close

back to that one chillion dollar mark. Amazon also holding their annual shareholder reading today. It's Andy Joss's first one at the helm. You know what we are takeaways from what we heard there, and you know whether Amazon can turn it around. The one I'm sure Amazon can turn it around. I look at Amazon is kind of what I call a d h Q dislocated high quality stock. It's the most successfully diversified tech asset that I followed.

I don't follow Apple, but it's the most successfully diversified in terms of advertising, cloud, retail, and then I think there's a couple of other targets that they can go after, including logistics and business supplies, et cetera. And I think groceries that probably falls into retail, but I think I think that's a new that's a that's a big area for them. So I'm not worried about the long term outlook really for Amazon. I think they can execute their way.

I think they've got some good growth initiatives that the nuance I picked up from today at least from the headlines and we have them all up yet is the focus on cost efficiencies and so yeah, I think the company um company did something where I don't recall Emily

Amazon ever coming out and saying we overbuilt. But that's what they said on the March quarter earnings call that they that they made it a mistake and they over extrapolated when they were making their CAPEX plans, their distribution center build up plans at the end of twenty and beginning of twenty one, the over extrapolated trends. I don't blame it for doing that. I think I probably did that too. I think the market obviously did that too.

But Amazon did that, and now they've got excess capacity, both on the labor force side and on the physical plant side. And the investor question is how long will it take you to work through that? And will what if we're going into recession, Well, that's just gonna make that that that that could pass utilization build back up time longer and longer. But I think they'll get through this, and and I think if I look at the stock

right now. You're a long term investor, not a trader, but an investor that you should be buying at least taking partial positions in Amazon on here today. Well, certainly it will be interesting to watch how Andy Dasey steers this ship. E recours at Mark Mahaney. Always good to have you, Mark, Thank you. We're probably going to hit eight thousand dollars before what was that number? Eight thousand until we totally flush. I mean, if I were I'd

be short. Could Bitcoin follow as low as eight thousand dollars? That was Googenheim Partners chief investment officer Scott Minored. They're speaking in Davos. He's a known skeptic on crypto, though at one point a couple of years ago, he was optimistic enough to predict bitcoin would hit four hundred thousand dollars. Of course we're still far from that. I want to bring into well Atchison now for her perspective. She's the head of market insights at Genesis Trading, a digital currency

prime broker. Noel, what do you think eight thousand dollars? What's going to come first? That? Or four hundred? Well between eight and four there's certainly quite a right range. I think you know the saying, if you're going to predict, predict with very wide ranges. Right. Thank you so much for having him. I do have to say that anything I say or my opinions not those of my employer, and of course nothing I say is investment advice. And

first of all, huge respect to Mr Minard. He was one of the first institutional investors, one of the early ones to look at bitcoin, and he did do his homework back in the day. But later on in this interview that you showed a part of, he did say that his predictions of eight thousand was based on technicals because there's nothing else like more or less quote there, and that is overlooking the growing adoption and the fixed supply.

This is something that many people tend to forget that no matter how high the bitcoin price, for how large the demand, the supply remains fixed. That's a fundamental feature right there. Bitcoins demand, which is growing could multiply by a thousand times the suppliable and rain fixed. Its price could go up by tech x the suppliable raine fixed. That's a pretty compelling investment case right there. On me, I want to ask you about some of the wreckage.

In the wake of this terror disaster, they now have a new plan that's been approved to split the Terror blockchain into Terror Classic and Luna Classic. What do you make of this as a path forward? Well, you can imagine crypto Twitter today is having a field day with this. I must say that anything that gives those that lost a lot of money a chance to get some of that money back should be entertained. I mean that would

be a very good development. That said, a lot of trust has been broken here, a lot of trust needs to be recovered, which is how many when you come to think of it, it it is quite ironic that trust is still such a firm component of a system that was designed to not need centralized trust to be able to have a decentralized trust mechanism. Shows that we can't get rid of the trust component after all. Well, so

I wonder what the path forward is then? Also for regulators, we know that the house can be on financial services is going to be talking about digital assets. For example, could up FED you know, FED central bank digital dollar

so to is bay possible? It's certainly possible, and in fact, in some parts of the world we already are seeing central bank digital currencies, and my opinion is that yes, we will see central bank digital currencies be quite commonplace within five years, and the form that this will take is still being hotly debated. It has many potential efficiency features, there are also some risks. We need to be careful.

But what is most interesting, and going back to what you mentioned earlier about the terror implosion, is that this will accelerate regulatory clarity not just about crypto assets, but about stable coins, their potential use in global trade, their

potential convenience for consumer services as well. It's a as a meeting field and standing here and right in the middle of it where it's all happening, watching what is arguably one of the most profound transformations of how we transact with each other as entities, as individuals, as sovereigns. Even it's it's an exciting time to be looking at this space now. Someone who is optimistic is Andreas and Harrow.

If they just announced a record for an half billion dollar crypto fune, what do you make of the influence that andreason Horowitz has on the cryptos ecosystem. More broadly, They've got quite a bit of money at Stakecare. They have a lot of money. They have a lot of money, and that's their main influence. But what they have announced today is a reminder of just how much money is

still sitting on the sidelines. We've had a frothy time of it in the crypto markets recently, certainly not because of the price, but valuations have been very high, Hiring has been very accelerated. I know of many investors who have been accompla with this. They're sitting it out because

they think the valuations are crazy. I know of many and burners that have walked out of initial pitch meetings with signed term sheets, and many other investors and itcdotally have told me that if they don't come up with the term sheet after the first meeting, they're out of the deals. That's kind of a crazy time. That's frothy, not because of price, Unlike other frothy markets that we've had.

What happened in the market crash the week of maybe eleventh is a cold, cold job of water, a j are cold water on the entire system has knocked a lot of the froth out. So the vast amount of money that has been sitting on the sidelines, but a lot of it coming from and recent horrowitz and their funds will now have better opportunities in which to invest, will be able to take their time and really do some due diligence and perhaps be more careful. That's another thing.

The terror implosion reminded all of us that which we do need to be careful and really think things through. The regulators also, no doubt, are going to be taking a more careful look at some of the stable coins and some of the other projects, because protection is part of their part of their role. But now that the froth seems to have a slightly different tone, I expect

us to see different kinds of investment deals. There's a lot of money out there, a lot of belief in the potential of the crypto industry to transform not just finance, but many other aspects of our culture, and it's going to be exciting. I wonder quickly, and I think about a company like micro Strategy, how do you think these massive price fluctuations are going to impact institutional sentiment quickly?

One thing that needs to change is the accounting principles for companies like micro Strategy has a very different issue. Institutional sentiment has taken a hit, but it is certainly not gone away. This is something that we see a Genesis every single day. We are still talking to them, they are still investing, they are still trading, but a bit more caution is definitely the tone that we're seeing. All right now, I'll act to send Genesis trading. Thank

you for sharing your thoughts. Thank you very much. Money coming up, the future of AI and keeping people safe on the role then promoting fuel efficiency. I'll chat with the CEO. Let's trying to make that happen. Let's talk now about the future of AI and helping to make driving safe. Motive, the tech company formally known as Keep Chucking, just raised a new funding round at nearly three billion dollar valuation, and it's planning to invest in artificial intelligence capabilities,

including dash cams that can identify unsafe driving. For more. I'm joined by Motive co founder and CEO Showing mccani Showy. Thank you so much for joining us, so talk to us about how the technology works, specifically the dash cams. Thanks for having me. Yeah, it's great to be here. Uh So, really a motive our mission is to unlock the potential of the physical economy. We we serve industries

like construction, energy, transportation, agriculture. UH. And what we do is we build technology that allows them to improve safety, UH and productivity of their operations. One of our products, as you mentioned, is the AI dash Camp, which is really a market leading technology that helps our customers understand how their drivers are performing on the road and actually in real time improved driving performance by observing the driver

and and alerting them of unsafe behaviors. UM. You know, in in our analysis, we've we've observed almost a twenty two percent reduction in accidents and road fatalities for our customers who deploy this technology. Who are your customers and one of the growth opportunities you see ahead? Yeah, we we we serve really what we call the physical economy. UM. These are industries that move things, build stuff, serve customers

in the physical world, industries like construction, agriculture, transportation, logistics. UH. And and really it's a segment of the economy that has been underserved from a technology perspective. UM. These industries haven't had a modern technology to drive the efficiency gains, the productivity gains that are necessary for them to keep up with what is a continuously expanding demand for their output and so we we built technology that enables these

businesses to drive. So let's talk about what you're gonna do with this funding. You know, do you have expansion plans in mind, perhaps beyond the United States? Yeah? We well so, so you know, we were definitely investing in growth. Uh, monitoring the macro environment and the health of our customers closely to make sure that we're taking the right actions and make sure we can we can build great products for them. But but also uh, you know, react to

what is it evolving market condition? Uh importantly, you know, our customers are facing incredib inflationary pressures. Uh. The cost of their inputs is is rising. Uh, and and our technology and that sense actually can be fundamentally deflationary. If we deliver on our promise of driving safety, productivity, helping them actually reduce their fuel costs, their maintenance cost we can help these businesses be more efficient and to thrive no matter what happens in the macro environment. Um. And

so so we were very much investing in growth. Uh. There's three really key areas that we're doubling down. Number one, AI powered automation. We think the source of operating leverage for the physical economy is going to come through productivity gains that are happy that happens through automation. UM number two. Uh, we're investing in fintech. Uh. So we recently launched the Motive Card. It's a zero fee corporate card that helps our customers save on fuel, maintenance, tires, the things that

they spend money on. UM, but also uh, you know, give them controls to be able to reduce fraud and reduce excess spend. And so we're be doubling down there and then also going up market serving larger and larger customers. All Right, Showy mccannie, co founder and CEO of Motive, We'll keep watching you. And that does it for this edition of Bloomberg Technology. We are back here tomorrow Thomas Carrie and the CEO of Google Cloud. We'll be with us. You don't want to miss it, and don't forget to

check out our podcast. You can find that anywhere you get your podcast. To get your daily Bloomberg Tech ground up. I'm Emily Changing in San Francisco. This is Bloomberg's eight