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tv   Bloomberg Technology  Bloomberg  April 29, 2021 5:00pm-6:00pm EDT

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emily: i am emily chang in san francisco. this is "bloomberg technology." coming up, amazon beats estimates. the pandemic momentum is not waning as the world reopens. shares surging after hours. qualcomm, what about expansion
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into pc's and cars? i will ask the ceo about that, the chip shortage, and more. speaking of cars, the way forward with waymo, alphabet self-driving technology company, capital injection, and the reality. first, big tech keeping us busy. amazon and twitter out after the bell. twitter tumbling. more on that in u.s. stocks, which rose to a record thursday. we have the latest. let's start with you. >> green on the screen with major averages. the s&p 500 higher, a lot of that thanks to big tech, even though they did not lead the indices higher, probably underperforming, but there is a diversion in the index, housing versus the nasdaq.
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i want to go overseas and show you that is not the case. when you look at the golden dragon index on a three-month timeline, tech trading sideways, maybe some marginal gains. monumental losses in this index. this is the one that has, alibaba, so that story is a big narrative in china now. stateside, the boards one more time, semiconductors. emily, you talked about that shortage. it is important to note that was part of the dynamic for caterpillar, apple, about how it could hurt their business to the downside. that helped semiconductor stocks. that demand story is not going away. you are seeing in the biotech index, some pain, health care liking. lastly, bitcoin is flat. green on the screen.
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risk assets higher. that proxy is not doing so well. ed? >> it is a tale of two tech companies in two different forecast. amazon up almost 3.5%, beating across the board bullish outlook. twitter plummeting. meeting estimates, but the forecast not great. amazon strengthening, but the outlook of sales in the second quarter shows they have longevity. look at this chart in the bloomberg. this is the 24th consecutive quarter of sales growth above 15% for amazon. 24 consecutive quarters. this time, not just e-commerce, but cloud and profitable advertising revenue. the company is solidifying its
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place in the post-pandemic world. let's look at twitter. estimates in terms of financials in the quarter, but it did not feel the same love that facebook and google got. the advertising market is strong. prices are up and volumes are high, but they had a tepid full forecast for the second quarter. the street is looking at the high end. what is the concern? why is twitter not resonating with advertisers in the way facebook and google are? we will find out. emily: thank you so much. we are sticking with amazon. let's take a deeper dive. let's bring in long time amazon veteran, melissa. huge numbers. lots of momentum. i wonder if this is the last quarter they will have that
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boost. what happens in the next quarter? melissa: this, i don't know if it is the last golden quarter, but starting q2, that will get harder. a very fine line item in this report, they mentioned prime day would be in q2 this year. that is an interesting data point. they are able to pull forward demand to q2 to help them, similar to what they did before. emily: that is interesting, moving prime day to june. do they need prime day to meet those numbers? melissa: absolutely. they are looking at comps year over year, and the only way to
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drive that demand is to move that event, like they did last year for q4. usually it is in the middle of summer, a dead month, so that's why they did that, last year, they moved it from july to october to move forward demand. they are using prime day to drive demand. that is impressive. emily: could advertising pick up some of that slack? amazon has been getting an increasing share of the retail ad pie, despite google's best efforts, i wonder if that is part of a longer-term solution. melissa: let's talk about advertising for a second. this quarter, the advertising growth was 73%, the biggest quarter yet. our data showed 60% so that
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means a tonic new advertisers came into advertising -- a to n that new advertisers came into advertising. it is increasing share of the market, what google is declining. with prime day, we sell this for october as well, people advertise for prime day, revenue increases, so that revenue will also increase along with prime day, too. emily: meantime, later this year, we expect the new person to take over as ceo, as jason bezos -- jeff bezos moves into the chair world, this as it is designing its own chip, punching a hair salon in the u.k. what is the next generation of amazon? it looks as if there is nothing the company won't try to do.
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melissa: they are a juggernaut, getting into everything. the hair salon is interesting, and interesting category, and i don't think that has to do with hair salons, but getting into distribution of professional hair brands, which you need a physical salon to do, which has been a challenge for amazon. they are building out the tech knology -- the technology. that would be amazing technology. they definitely have a lot of opportunity to continue to grow. we will see what that is. emily: right. we will see if that starts to expand and be watching how the new ceo chooses to lead the company when he takes over. melissa, thank you so much. coming up, some breathing room, the chip crunch, the qualcomm
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incoming ceo says the world's biggest supplier of smartphone chips managed to avoid the worst of the supply shortage, as it reports a dazzling second quarter. he will join me next. this is bloomberg. ♪
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emily: qualcomm postings strong second-quarter results, managing dodge the worst of the chip supply shortage, while riding a wave of demand. not a bad gift from the
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departing see you, handing the reins over on july 1. he joins me now from san diego. good to have you on the show. strong quarter. stronger outlook than was expected. what has changed that has allowed you to be so positive? >> a number of things. the smartphone market, we have a great opportunity ahead of us, the expansion of our addressable market into the units that work with huawei and the ability to gain the market share, especially in premium units, and a market like this which is mature, it is an incredible driver for our business. you don't have to often come where you have $10 billion of addressable market becoming
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available. that is why. the other one is we continue to diversify the company and have an incredible story in automotive and another segment. and we have two consecutive quarters. that is the reason we are so excited about the company. emily: staying on smartphones, it is a mature market, so what is your strategy aside from huawei to continue to grow in the smartphone market? cristiano: in 5g, it is becoming crystal clear to us that the strategy, which is working well for the company is basically to provide the premium experience with snapdragon. we have got ourselves in the situation, that when you think about premium android, the word
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that comes is powered by snapdragon. we already know who the winners and losers are, and most of it went to other companies, and that put qualcomm in a good position. that is the key driver of strategy. we are seeing the 1.5 multiplier , 4g to 5g,, 1.5 times the revenue, the chipset on the front end, and we are just beginning that, as outlined in the earnings call. 2022, there is the ability to realize the opportunity of the 10 billion in addressable market available to us. emily: we have heard everyone to elon musk complaining about the chip shortage. how bad is it, and when do you expect relief? cristiano: ok. emily, across-the-board, phones,
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iot, there is more demand for products that we can supply. on one hand, it is a good position to be in and shows that there is a lot of demand for technology, but we have to utilize our scale and put a lot of actions in place to get out of this capacity crunch. we have the ability to multisource products and the ability to leverage it and put capacity planning in place and have to make demand commitments to get demand and return. in the midst of this difficult situation, we generate growth, and have a line of sight, material improvements/end of the calendar year.
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emily: what does that mean. what do you expect to happen at the end of the calendar year? cristiano: i expect to see our ability to meet the demand, much less constrained, and that position is 12 for the growth factors for fiscal 22. emily: yesterday was the last earnings call, and you said your time will be defined as qualcomm expansion outside smartphones, cars, iot. give us a progress report on that. cristiano: we have a lot of reasons to celebrate. automotive, it is changing dramatically, and if you look at the car companies they need a lot of digital assets, and we
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position ourselves as the partner for those companies. you have a traditional car company who has the technology that qualcomm, that could be equal to what a company like tesla can do. we see that reflected in our numbers. we added another billion in our pipeline of automotive revenues, including a number of technologies that require the chassis. in the news segment we are talking about, we have growth opportunities because it is highly diversified, the iot segment. within that segment, there are things that could be very big bets for us. one is the conversion of computers in phones. the computer became a communicator device. i'm sure when you go to your
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computer, the number one zoom cases zoom calls. it has changed the use case of a computer more towards a phone, connected, cameras, multimedia, and with our acquisition, we expect we will be a provider for pc's. the other big bet is augmented reality. we are at the beginning of that. we have great progress with facebook, oculus, microsoft, and it could be the next phone, so we are excited about the iot segment, and we will keep going at it. emily: interesting. now, so many changes happening in the chip business now. you told me you are excited about the new foundry operation for intel. a lot of folks are skeptical
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that companies like apple and amazon will go to intel. do you see a changing of the guard coming or not? cristiano: from a big picture standpoint, we are happy to see more investment in foundries. we represent one of the biggest examples of this fabulous semiconductor industry. we need the manufacturing, and intel's foundry is good news. we are emitted to work with existing partners, but also intel. it will take time. those conversations, a number of years, but that is a positive development, for sure. emily: who gets left behind then? cristiano:cristiano: look -- cristiano: look, the answer to
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that question is that more and more, i see the intent to develop manufacturing in multiple locations, samsung, one of the best-kept secrets, a large number of our chips are made in the united states, austin, texas. they are talking about more investment in the u.s. there will always be room for leading technologies, semiconductors, and it is all about the best performance. today, we work with those companies because they are leaders in performance. it is all about technology and is a great opportunity for intel as well, it is about technology and leadership. emily: thank you. we will be looking forward to view officially taking the reins later this year.
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thank you so much for joining us. coming up, twitter after hours, shares tumbling, even though the company was largely in line with estimates. was growth not explosive enough? that is next. this is bloomberg. ♪
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emily: twitter reported first-quarter revenue up 28%, largely in line with estimates, so why did it feel like a bummer to investors? the stock falling like a stone, down 10%. ouch. what is happening? >> i think there is just a comparison issue here when you look at what happened earlier in the week with facebook and google, the other
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advertising-driven companies. they crushed first-quarter, and beat expectations. there comes twitter, and they were right in line. q2 guidance is a little weak, so there was this high expectation with the other two coming through earlier in the digital advertising business was booming, and they did not necessarily capitalize on that. emily: you cover twitter for us. how much of this has to do with a lack of something? -- trump? kurt: when you look at the user growth, it was still 20%, which is good for them. it does not seem they are struggling to maintain that usage, which there was a
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i think this is more about their business. they are good at brand advertising. you get the advertisers that want to associate with the company for big events. they are not good with the small businesses that drive a lot of e-commerce these days. they are not doing that direct response that direct sales that facebook and google are good at, and that is what twitter is missing. emily: we will be speaking with the twitter ceo on friday, talking about these results come up what are the questions for the company right now? kurt: in contrast to facebook, and i listen to their call yesterday, they do a good job of pointing to the future, here are the things we are working on, ar, vr, business messaging, all the ways we will make money that we don't currently make money, and twitter does not have that. they do advertising, and that is about it. i will be interested if they do
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subscriptions, newsletters, tipping, but i want to hear from him more about how they plan to diversify. a lot of their competitors are doing that, and talking about a publicly come in twitter does not do that. emily: quickly, how much do you think the competition from other platforms like tiktok, snap, or instagram is playing a role? or is that a different use case at this point? kurt: i think they do play a role, because advertisers only have so much money to spend, and you have to pick and choose platforms to go with. i think twitter could be more competitive if they offered more specific direct ads for shopping and commerce, in particular. they just don't play them. emily: thanks so much. don't miss the interview with the twitter cfo tomorrow. coming up, a new era for waymo.
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two ceos taking the reins. where will waymo take it next. the co-ceo's are joining us next. ♪
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emily: welcome back to bloomberg technology. google reported strong earnings wednesday, pushing shares higher, but there was one line you may have missed. ed ludlow is here with that. ed: shares of 1.4 percent on thursday, adding fresh record highs. a strong earnings report in the core business. i like to look at to the other bets line. most notable being waymo, the self driving unit. the ceo did have kind words to say. two new ceos. he talked about their progress
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in phoenix where they run a commercial pilot. he talked about the upping of their testing in san francisco. we did not hear much more about progress or google's commitment to the company. or consolidation. what we have seen over the last 12 months is consolidation among autonomous driving startups. for financial reasons, for -- lyft selling its autonomous driving unit to toyota. it is capital-intensive. progress has been slow. there is a finite pool of engineering talent. everyone wants to know one question. when are we going to seek commercial robo taxi fleets in the real world? we have been talking about this for some time. emily: we are going to talk to some folks who have an answer to that question. ed ludlow, thanks so much.
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joining us to talk about the future of waymo are the new co-ceos of the company. thank you both for joining us. i want to start by talking about your backgrounds. you have very different skill sets. you have been in the self-driving industry for two decades. and you have worked your way through policy and operations jobs in text. history tells us co-ceos do not often work. why do you think it will work this time? >> thanks so much. in this case, waymo is a unique company and we are tackling a very new industry with a nascent technology. having these complement reskill sets where technology is always going to be at the core of our operations, of our engagement with the policy landscape. last four years being deeply engaged on the strategic
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decisions working side-by-side. it has set us up well to work together. emily: some people do not realize you can go to phoenix right now and hail a self-driving waymo and it will take you where you want to go. i know you are always testing these crazy scenarios on your test track. where does waymo take us next? when will i be able to buy a self-driving waymo myself? >> we have a dimension employed, fully autonomous ride-hailing service in phoenix and that is how people can experience it. you can download an app, order a car. it shows you up with -- it shows up with no human behind the wheel and takes you anyway. we have plans to expand that capability we build to other
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commercial applications. we will slowly get to what we refer to as the personal car ownership. emily: on that note, do you plan to sell services direct to consumer and if so, when? or is it going to be like a package service to cities and music polities? >> we are definitely going direct to consumer. we have two sides to our business. we have waymo one, which is where remove people and we are moving goods. for waymo one, our ride-hailing service available today in phoenix, it is direct to consumer. you download the app. you go from point a to point b. there is no driver in the car or behind the wheel at all. that is really important because i think there is a lack of understanding that that service is a service.
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people are paying for it. they are excited about it. on the waymo via side, we have trucks going to texas as well as local delivery. transmission for autonation as well as eps. emily: you talked about a lot of things. everything from robo taxis to driverless vans to driverless trucking. i wonder, why focus on all of those things at once and now? why is that the best approach in your view? >> we have spent years advancing the core capabilities of our technology and the core capabilities of the driver. we have reset levels of maturity on that product. we have deployed it in that fully autonomous ride-hailing business in phoenix.
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looking at other products and applications of our driver, other commercial lines, while there is some specialization when you go from ride-hailing to trucking to local delivery, the core fundamentals of what it means to be a good driver carryover well from one product to another. the software and all of the ai and machine learning for understanding the world around you, for protecting the behavior of others, for making safe and natural driving decisions as well as all the machinery under the hood, the infrastructure, the data plans, all of that carries over well and that will allow us to move fast any other commercial applications. i am confident in the development we have developed over the years that will enable us to deploy the driver beyond ride-hailing. emily: i actually had a chance to ride in a self-driving car 10
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years ago and i will never forget it and certainly the technology has changed so much since then. as you mentioned, waymo's approach is no driver at the wheel. you don't need the attention of a human driver, whereas other companies like tesla offer more driver assisted technology. with tesla fully self-driving beta around the corner, i am curious if you would double down on that philosophy and if you think tesla is going about it the wrong way. >> what we have learned with driver assist technologies is you really need to have a fully attentive human who has a drivers license and who is able to take over if the technology
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fails or he human assistance. with waymo, we are a fully autonomous technology company and we are only focused on the level of autonomy needed for no. we think that is important for a few reasons. if you believe the statistics around the amount of human error involved in the crashes 94%, then you know that is how you tackle creating several roads, which ultimately is our mission. secondly, we also know that consumers are confused. consumers needs to understand the capabilities and limitations of the technology we are using.
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when you say you can get into a waymo, the driver will do the driving. you don't have to take over. in phoenix, you are not even in the front row. you don't need a drivers license. you can be someone old enough to drive. we are excited about the mobility and access this kind of technology would unleash for people who cannot drive. emily: since you say consumers are confused, there was this deadly crash involving a tesla. two people died in texas. we are still getting more details. as someone who has been in this industry a long time, when you heard that story, what was your reaction? >> it is tragic. avoiding these kinds of tragedies his at the core of our mission. we want to leverage this technology to improve the safety of transportation. that is why i and many other people are here. it is tragic and it causes us to double down on the work we are doing on building our drivers that are responsible for the entire trask of driving beginning to end so there is no confusion of who is in control. emily: now, i spoke earlier this
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week around earnings. we talked about your transition to becoming co-ceo. from the outside, i know folks in the industry thought it was an abrupt announcement. it came out on good friday. can you tell us anymore about the circumstances surrounding the departure and if this succession was planned? >> john had over four decades in this industry. he put his heart and soul into the automotive industry and at waymo in premier -- in improving safety. he made a personal decision he was ready to go and do something else. in the short term, travel with his wife. he said stay tuned for what else they might do. he published a blog on that. it was all in his own words. this was a decision john made and we are excited he decided to stay on as an advisor.
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we will get to work with him in that capacity. emily: there are continuing questions about how and when waymo will make money. silverlake led a big cash injection into waymo. we $.25 billion. are we going to see more external funding like this or will the support come directly from alphabet? >> we did have -- last year that
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having conversations with parties beyond alphabet. emily: how would you characterize the support of alphabet at this point and the desire for waymo to make money? when do you see waymo making mone >> the support from alphabet has been tremendous. this is a hard challenge, building the waymo drivers to be fully autonomous and doing it safely and taking the iterative approach we decided to take. we really emphasize, how do you blow this technology out the first time and get it right? we have a lot of support for that approach. we believe that is how you ultimately capture the value of all of the work over the past 11 years and over 20 million miles of public roads. it is by doing it in a way that preserves the opportunity in the long run. safety is the core of how we proceed and we don't feel any pressure to diverge from that approach. emily: my colleague pointed out earlier we have seen a wave of consolidation in this business and i am curious, are we going to see waymo make acquisitions? is there anywhere in terms of technology or talent you believe
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waymo is lacking where you would like to bring that in? >> yeah, a couple of -- as we just mentioned, building and deploying a fully autonomous system is a really hard problem. it is very easy to get started. it is also easy to get excited about the early progress you are making. the more deeply you engage, the maury understand of the problem, the more you realize how hard the task is. it is not surprising we saw a number of efforts to spring up. we will likely continue to see more consolidation in the industry. from the waymo perspective, we have done some targeted acquisitions in the past. we will continue to keep and i out for what is have thing in the industry -- what is happening in the industry. emily: how aggressively is waymo
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engaging with state government, local regulators to allow a wider deployment of fleets? where will the next phoenix be? >> waymo has been engaging with state, local and national government officials on how best to deploy this technology for years. in arizona, it was exciting because the governor started out enabling the technology path and this year, we saw the arizona legislature passed a bill that codified that. there are these states taking the lead. they are taking the lead because they have an interest in solving some of their own mobility challenges. they can look down the road and see this technology would useful. -- would be useful. one of the things that is great is transportation innovation is a largely bipartisan issue.
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people recognize this as an opportunity for the u.s. to lead globally. it enjoys support on both sides of the aisle. emily: i know that chrysler pacifica is one of your big vehicles and having a large family myself, when will i be able to hail a pacifica or buy one myself and have it take my family to tahoe? give me a number of years. >> we have started the deployment of the waymo driver in phoenix. people can already do that today. we are working on advancing the technology to scale up and take our ride-hailing business to more places. there is a lot of work happening towards that end. we are now switching to the fifth generation driver that is by far the most capable and most
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advanced system we have built today. treating both the hardware and software side. that system is designed to upgrade everywhere. it is built to work in harsh weather conditions like rain and snow. it is built to provide capability of driving in ants, urban environments. -- in dense, urban environments. i am not ready to give a specific timeline. that is what we are working on. stay tuned. emily: alright. i will ask you again in our next interview. the waymo co-ceos. thank you so much for joining us. great to have you on the show. wonderful to see a view of the present and the future. coming up, an electric car maker to roll out it's all electric egg up trucks over the next few years.
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does the u.s. have a charging network big enough to support it? we will be talking about ev infrastructure next. this is bloomberg. ♪
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emily: the ev boom is here to stay and an electric pickup truck maker plans for its vehicles to hit the market over the next few years. as more and more ev's make their way to the market, ensuring there are enough charging stations will be important. >> the future of the auto industry at least in the u.s. rides on pickups. specifically electric ones.
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a dozen all new electric pickup trucks will have the market in the next few years including versions from ford and tesla. the share is only going to grow. there is one big problem. electric vehicles need electric vehicle chargers and are still are not many of those, particularly in rural america. without big government subsidies like in china and europe, it is tough to make money on charging. it is tough to sell ev's without charging. it is a chicken and egg problem. this year, caribbean -- the start up pledged to build more than 13,000 charging stations it will own and operate. that is more than elon musk has
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managed. the charging map is scattered broadly. campgrounds, trailheads, they all loom large. fans will be able to juice up all over alaska, hawaii, the deep south and the farce of maine. -- the forests of maine. it wants to keep its customers happy. look any hardware maker, it is selling experience as much as the product. the charger, one that works well and quickly, is a critical part paired the charging network will be an astronomical cost. a huge risk to a fledgling company. outsourcing the experience may be -- this is how we move. for more content like this, follow us on your favorite platforms.
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emily: still ahead, we are going to take another peek at amazon's first-quarter results beating estimates. that is next. this is bloomberg. ♪
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emily: amazon reporting a big jump in sales and a bullish forecast, continuing the streak of rapid growth. raising the prospect of a return to pre-pandemic shopping habits in the united states. joining us, a recap of the results. brownstone has been covering amazon for a long time. can amazon keep up this momentum even out of a pandemic? what is seeing any these numbers in terms of -- seeing in these numbers? >> folks asked on the in's call,
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when will andy jassy be taking over? we think that is going to happen in the third quarter. to me, what is remarkable about this blog esther running -- this blockbuster earnings port is how sustainable the advantages could be. they are spending $50 billion on capex. that is building fulfillment centers and delivery stations. they are in a position to control their entire supply chain. that translates into more convenience for customers. lower prices. these are things that even though people might feel more comfortable going back into stores, they are still going to make a difference and people have been forging these online shopping habits. jeff bezos is handing andy jassy a successful company firing on all cylinders. emily: the question is when.
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they made the point to announce this earlier this year. why are they being vague about when this happens? >> i don't know. they said the third quarter. i expect this is already a leadership transition process that is already taking place and they have a new ceo for aws and i imagine maybe andy jassy is back in his own shadow role following jeff bezos around and getting comfortable running the whole company. emily: all right. you would know better than almost anyone. brad stone, thank you so much for the insight. we will watch the amazon headlines as they roll out. that does it for this edition of bloomberg technology. i am going to be speaking with the twitter cfo tomorrow after the company's first-quarter earnings. don't miss it right here on bloomberg television. i'm emily chang in san francisco. thanks for joining us.
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this is bloomberg. ♪
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haidi: welcome to daybreak australia. shery: good evening from bloomberg's world headquarters in new york. haidi: amazon delivers strong results as consumers continue to shop online. twitter tumbles on a difference -- on supporting revenue forecast. china's crackdown on tech


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