Intel Raises Cash, Apple Gets Downgraded | Bloomberg Tech 8/10/2026

>> BLOOMBERG TECH IS LIVE FROM THE HEART OF SILICON VALLEY WITH ED LUDLOW IN SAN FRANCISCO. ED: INTEL IS TAPPING THE MARKET FOR $15 BILLION IN FRESH CAPITAL SAYING RENEWED ENTHUSIASM WILL PUSH ITS RUN INTO CHIPS. A RARE DOWNGRADE FROM JEFFRIES ON APPLE WITH CONCERNS ABOUT ITS IPHONE ROADMAP. MICROSOFT SAYS AI AGENTS ARE ALREADY TRANSFORMING HOW SOFTWARE GETS BUILT. WE SPEAK WITH CHARLES LAMANNA ABOUT WHAT IS NEXT. INTEL DOWN 4%. IT WANTS TO TAP THE MARKET FOR $15 BILLION WORTH OF STOCK. THE FIRST TIME IT DOES A PUBLIC SHARE SALE SINCE IT LISTS DID BACK IN 1971. LET'S GET STRAIGHT TO IT. LEADING ARE COVERED FOR SEMICONDUCTORS. SO INTERESTING THAT THIS HIT THE INBOX THIS MORNING BRING $15 BILLION IS A LOT OF MONEY AND IF YOU LOOK AT WHAT COULD FOLLOW IT COULD GO UP TO -- IT COULD GO UP. >> IF YOU THINK ABOUT IT IN TERMS OF WHAT INTEL HAS TO ACHIEVE BUILDING THE FACTORIES WHICH COSTS TWICE THAT AMOUNT. CATCHING UP WITH NVIDIA AND AND ACCELERATORS. IT'S NOT THAT LARGE OF AN AMOUNT OF MONEY. OBVIOUSLY INVESTORS LIKE THAT THIS MORNING. ED: THIS IS A TIMING THING. THE STOCK TRIPLED SO FAR IN 2026. THERE HAS BEEN RENEWED ENTHUSIASM BY INVESTORS FOR INTEL'S AI STORY. IAN: YOU ARE RIGHT. IT MAKES SENSE FOR INTEL TO DO THIS TO GO TO THE EQUITY MARKETS RATHER THAN TO GO BACK TO THE DEBT MARKETS BECAUSE IT'S BEEN TRIED CLEANING UP THE BALANCE SHEET AND MAKING PROGRESS. THAT'S PART OF WHY THE STOCK HAS GONE UP BECAUSE HAS MADE PROGRESS ON CLEANING UP THAT BALANCE SHEET. THE SORT OF HELP THAT NARRATIVE. ALTHOUGH IN A WAY INVESTORS CLEARLY DON'T LIKE. IT IS A NICE AMOUNT BUT WHERE DOES IT GET US? ED: YOU AND I WERE ON THE PHONE RECENTLY WITH THE INTEL CEO AND CFO AND THEY GAVE US IT CAPITAL SPINACH NUMBER FOR THE YEAR THAT IS BIGGER THAN EVEN THEY EXPECTED. IT WAS KIND OF LIKE WE WILL ONLY DEPLOY CAPEX IF WE SEE A RETURN ON IT. TALK ABOUT SOME OF THE PROJECTS THEY ARE COMMITTED TO AND WHAT IT IS TRYING TO ACHIEVE. IAN: UNDER THE PRETE ASSESSOR THEY BUILT A PHYSICAL FACTORIES IN PLACES LIKE OHIO AND ARIZONA. THEY DID NOT DO THE EXPENSIVE PART WHICH IS TO BUY THE EQUIPMENT AND PUT THAT IN THERE. NOW THEY'RE SAYING FOR THEIR OWN STUFF ALONE WE HAVE THIS CAPACITY. IT IS KIND OF A GOOD PROBLEM IN A WAY. THEY NEED TO SPEND MORE BUT THE REAL BIG STEP UP IN SPENDING WOULD BE IF THEY GET THAT EXTERNAL CUSTOMER THEY ARE LOOKING FOR LET'S SAY NVIDIA OR APPLE DECIDES THAN THEY NEED THAT BIG CHUNK OF CHANGE IN A HURRY FOR THAT STEP UP IN DEMAND. HAVEN'T SEEN THAT YET BUT PERHAPS IN THAT DIRECTION MAKES US FEEL MAYBE THEY ARE PREPARING TO DO THIS. ED: INTEL DOWN IN THE SESSION UP 160 5% YEAR-TO-DATE. ANOTHER TOP STORY, SHARES OF APPLE UNDER PRESSURE. THE COMPANY WAS DOWNGRADED AT JEFFERIES TO UNDERPERFORM FROM HOLD. THEIR PRICE TARGET OF 263 $.63. IT COMES AMID CONCERNS OF THE ROADMAP. JEFFRIES SAYS THE SUPPLY CHAIN SHIPS SUGGEST AN ALL GLASS IPHONE WHICH WAS EXPECTED IN SEPTEMBER OF 27 HAS BEEN CANCELED DUE TO LOW PRODUCTION YIELDS. HERE WITH MORE IS EDISON LEE. CAN WE START WITH THE SUPPLY CHAIN. SOME PEOPLE IN THE BLOOMBERG TECH AUDIENCE MIGHT NOT BE FAMILIAR WITH WHAT IT IS YOU DO. YOU'VE LOOKED AT THE ALL GLASS IPHONE. EDISON: IN 2027 THE 20TH ANNIVERSARY OF THE IPHONE THAT'S WHY OUR UNDERSTANDING WAS APPLE HAS THIS NEW DESIGN WHICH IS ALL GLASS MEANING THERE WILL NOT BE ANY FRAME. SO THE ENTIRE IPHONE IS WRAPPED IN GLASS AND ALSO THERE WILL BE NO PHYSICAL BUTTONS ON THE SIDE. IT IS REPLACED BY HAPTICS SO THAT IS WHY THIS IS GOING TO BE A BEAUTIFUL LOOKING IPHONE IT WILL BE MARKETED ON THEIR 20TH ANNIVERSARY. WE THINK IT IS A FORMFACTOR FOR THE IPHONE WHAT I CALL A STRICT IPHONE. I THINK IT IS GOING TO BE A PRETTY BIG EXPENSIVE AND HIGH-END LOOKING PHONE AND WE THINK OVER TIME IT MAY NOT JUST BE MARKET PRODUCT. OVER TIME THIS MAY BE TRANSPORTED TO THE PRODUCT FOR LESS. WE THINK FY 29 AS WELL. THIS IS HOW APPLE INTENDED TO MOVE UP THE PRODUCT ROLLOUT WHICH I THINK IT IS VERY IMPORTANT RIGHT NOW GIVEN THE COSTS. >> THIS WAS REPORTED UNDER THE CODENAME GLASS WAY. THE SECOND FACTOR IS ASP. WHY IS IT IMPORTANT THAT YOU SEE A PATH FOR APPLE TO MAINTAIN A HIGHER AVERAGE SELLING PRICE? EDISON: I THINK THERE ARE TWO REASONS. THE SMARTPHONE ITSELF IS A MATURE PRODUCT AND THAT'S WHY A MAJORITY OF THE DEMAND IS GOING TO COME FROM REPLACEMENT DEMAND. WE THINK WITH AI NOT YET TAKING HOLD, TO CHANGE THE SMARTPHONE I THINK THAT NEW FACTOR IS IMPORTANT FOR APPLE TO BE ABLE TO RAISE THE ASP OVER TIME PARTICULARLY RIGHT NOW AI HAS TAKEN OVER AS THE KING OF THE SUPPLY CHAIN AND THAT'S WHY THEY ARE NO LONGER THE KING OF THE SUPPLY CHAIN. CUSTOMERS WITH THE MEDIUM TO LONG-TERM CHALLENGES WILL BE SUPPLY CHAIN CHALLENGES. ENOUGH SUPPLY OF CHIPS OR SECURING ENOUGH MEMORY AND THOSE PRICES CONTINUE TO GO UP. BEING ABLE TO INTRODUCE PRODUCTS THAT CAN SELL AT HIGHER PRICES TO OFFSET THE CHALLENGE IS IMPORTANT. ED: ON SEPTEMBER 1, TIM COOK STEPPED DOWN AS CEO BECOMES EXECUTIVE CHAIR AND JOHN TAKES OVER AS CEO. HOW HAVE YOU MODELED FOR THAT CHANGE AND DO YOU SEE IT REFLECTED IN THE RESEARCH YOU PUT OUT ON AN ALL GLASS IPHONE AND THE SUPPLY CHAIN CHALLENGES. EDISON: RIGHT NOW, THE TWO BOTTLENECKS APPLE IS FACING. NUMBER ONE IS THE ADVANCED TSMC. THE IPHONES AND APPLE PRODUCTS ARE USUALLY POWERED BY THE MOST ADVANCED MODELS IN TSMC RIGHT NOW THEIR MOST ADVANCED MOVING FORWARD WILL MAINLY BE USED BY AI COMPANIES THAT CAN PAY MORE THAN JUST APPLE. AND MEMORY IS THE SAME SITUATION WHERE THEY ARE CRAZY ABOUT MEMORY THEY WANT TO PAY HIGHER PRICES AND THEY WILL OCCUPY MAJORITY OF THE MEMORY PRODUCTION CAPACITY. THAT'S WHY IN ORDER FOR THEM TO BE ABLE TO GET ENOUGH MEMORY AT THE RIGHT PRICES AND TO GET ENOUGH PROCESSING CHIPS AT THE RIGHT PRICE AT THE RIGHT TIME I THINK IT WILL BE A BIG CHALLENGE FOR APPLE. ED: ONE OF THE THINGS CONCEDED IN THE EARNINGS CALL WAS THAT MISSED READ DEMAND AND THEREFORE HAD NOT PLACED THE ONUS ON ENOUGH CAPACITY. HOW MUCH DID THAT SURPRISE YOU IN THE MISMANAGEMENT OF THE SUPPLY CHAIN? EDISON: I WOULDN'T DESCRIBE IT AS MISMANAGEMENT BUT I THINK THE STRUCTURE HAS BEEN DRAMATICALLY ALTERED BY AI. BEFORE AI CAME ALONG APPLE IS THE BIGGEST CUSTOMERS OF MANY OF THESE COMPANIES INCLUDING TSMC OR SK HYNIX. BUT I THINK THERE WERE ONE OF THE BIGGEST. IN GETTING TO 27 IN TSMC. ALL THE COMPANIES ARE MOVING FORWARD AND ALSO HIGHER PAYING MORE AND AS A RESULT OF THAT APPLE HAS MANAGED THE SUPPLY CHAIN MORE EFFICIENTLY. IN ORDER TO OFFSET THIS AND THESE HIGHER COSTS, I THINK THE MOST FEASIBLE THING TO INTRODUCE HIGHER PRICED ITEMS. SO CONSUMERS PAY MORE AND CAN OFFSET HIGH COSTS IN THE MARGIN. >> APPLE IS DOWN AFTER JEFFRIES DOWNGRADE. WE SPEAK WITH EDISON LEE OF JEFFRIES. ALSO LOOKING AT SHARES OF MICROSOFT THIS MORNING. THE INFORMATION REPORTING MICROSOFT PLANS TO SIGNIFICANTLY INCREASE PRODUCTION OF ITS INTERNAL AI CHIPS AND THEY ARE CITING SOURCES ON THAT AND THEY PLAN TO UNVEIL THE NEWEST DESIGNS OF THAT, THE STOCK HIGHER OFF 1.8 PERCENT. SEPARATELY IN THE SHOW FROM CHIPS TO SOFTWARE WE WILL SPEAK WITH CHARLES LAMANNA. COPILOT AGENT A PLATFORM COPILOT WAS A BIG FEATURE FOR THE RECENT EARNINGS PRINT. ALSO COMING UP BAILLIE GIFFORD TALKING ABOUT LONG-TERM BETS IS THE AI RACE BETWEEN THE U.S. AND CHINA HEATS UP. THIS IS BLOOMBERG TECH. ED: WHEN IT COMES TO TECHNOLOGY OLD ADVANCEMENTS, ACCESS TO CAPITAL HAS BEEN A U.S. ADVANTAGE. BEIJING IS CLOSING THAT GAP BY TAPPING A 28 TRILLION DOLLAR MARKET AS AI EMERGES AS THE NEXT ENGINE OF ECONOMIC GROWTH. MIKE JOINS US WITH THE BIG TAKE. WHAT DO WE NEED TO KNOW? >> KUDOS TO OUR COLLEAGUES IN ASIA AND OTHER DEEP REPORTING ON THIS. THE STORY FOCUSES ON THE CHIPMAKER WHOSE IPO LAST MONTH REALLY CAUGHT GLOBAL ATTENTION RAISING NINE POINT $8 BILLION IN ITS INITIAL SALE BUT THEN SHARES JUMPED ALMOST 500% IN THE FIRST DAY OF TRADING. WOULD IT SIGNALED HIS CHINESE CAPITAL MARKETS WILL PLAY INCREASINGLY SEEM TO BE ENROLL IN THE AI TECH BUILD OUT IN THE WORLD'S SECOND-LARGEST ECONOMY. IN THE PAST WE'VE SEEN BEIJING EMPLOYEE TO HELP INDUSTRIES LIKE SOLAR PANELS AND ELECTRIC VEHICLES TO GREAT SUCCESS AND EFFECT TO HELP PROPEL THEM TO THE LEAD. ARTIFICIAL INTELLIGENCE IS SOMETHING THAT IS DIFFERENT. IT IS SO CAPITAL-INTENSIVE WE NEED TO KNOW THE LANDSCAPE HERE IN THE U.S.. TRILLIONS OF DOLLARS IN PLEDGES INVESTMENT HERE. DATA CENTER AND OTHER INFRASTRUCTURE AND JUST THIS MORNING WE SAW INTEL ANNOUNCING IT WOULD OFFER AN ADDITIONAL $15 BILLION IN SHARES AS PART OF TRYING TO FEED THAT BEAST OF THE NEED FOR MORE CAPITAL KEEP BUILDING. IN CHINA THERE IS A MISMATCH BETWEEN THE SIZE OF THE U.S. STOCK AND BOND MARKET AND THE FINANCIAL MARKETS IN BEIJING. IT'S ROUGHLY ON THE ORDER OF FIVE TIMES SMALLER THAN WHAT WE HAVE HERE. IT IS NOT INSIGNIFICANT. $28 TRILLION STOCK AND BOND MARKET INVESTORS CAN TURN TO. CHINESE AUTHORITIES ARE LOOKING AT THE HIGH RATE OF DOMESTIC SAVINGS. THEY ARE SITTING ON HOUSEHOLD SAVINGS OF $26 TRILLION THAT PERHAPS CAN BE TAPPED INDIRECTLY OR DIRECTLY THROUGH THIS TO HELP FEED THE BEAST OF ARTIFICIAL INTELLIGENCE GROWTH WHICH IS ONE OF XI JINPING'S TOP PRIORITIES ECONOMICALLY OVER THE NEXT DECADE. ED: LET'S STICK WITH THE GLOBAL AI RACE. OUR NEXT GUEST BELIEVES SOME OF THE MOST COMPELLING LONG-TERM GROWTH OPPORTUNITIES REMAIN OUTSIDE THE U.S.. INVESTMENT MANAGER AT INTERNATIONAL CONCENTRATED GROWTH STRATEGY JOINS US NOW. WE OFTEN FRAME THE U.S. CHINA AI RACE IN TERMS OF WHO HAS THE BETTER CHIPS. WHO IS DOING THE MOST WORK ON ADVANCED MODELS. BUT ACCESS TO CAPITAL SEEMS AN >>>> THAT HAS ALWAYS BEEN THE CASE, PARTICULARLY IN A CAPEX INTENSIVE INDUSTRY LIKE ARTIFICIAL INTELLIGENCE AND I WOULD MAYBE TAKE A STEP BACK. FOR LONG-TERM INVESTORS WHAT MATTERS IS MONEY OUTLIERS AND THOSE WILL NATURALLY HAVE GREATER ACCESS TO CAPITAL BECAUSE THEY ARE BETTER BUSINESSES. I MAY BE A BORING GUEST FOR YOU BECAUSE I HAVE OLDER INFORMATION RATHER THAN NEW NEWS BUT INCREASINGLY MARKET PARTICIPANTS TEND TO BE CONFLATING NEW AND IMPORTANT AND IT IS EASY TO DO IN AI GIVEN THE CHANGE IN GROWTH EXACERBATED BY STRUCTURAL MARKET DYNAMICS. 60% OF U.S. INVESTING IS DONE THROUGH PASSIVE VEHICLES MUST 75 PERCENT OF TRADING VOLUME IS FROM QUANT FUNDS AND THERE IS INCREASING RETAIL PARTICIPATION SO MARKETS HAVE NEVER BEEN FASTER AND NOISIER APPEAR IN BEING ABLE TO TAKE A STEP BACK AND FOCUS ON FUNDAMENTAL ATTRIBUTES OF A COMPANY AND WHAT INDUSTRY THEY ARE TRYING TO DISRUPT, ARE THEY INVESTING IN INNOVATION OVER THE LONG-TERM, AND LONG-TERM CARE MEANS FIVE OR 10 YEARS BECAUSE TRUE CHANGE TAKES DECADES AND NOT QUARTERS. THOSE ARE THE KINDS OF BUSINESSES THAT WILL GROW IN THE LONG TERM REGARDLESS OF WHICH INDUSTRY THEY ARE IN. ED: I'M HAPPY TO PARK THE NEW AND STICK WITH THE IMPORTANT. I DID SPEND TIME GOING THROUGH YOUR FUND IS SO TWO INTERESTING PARALLEL CASE STUDIES IS TSMC IS A TOP HOLDING, AS IS SK HYNIX ON THE MEMORY SIDE. THE CASE STUDIES OUTLINED ARE SEE XMT ON THE MEMORY SIDE COMPARED WITH SK AND ALSO CHINA'S EFFORTS TO HAVE DOMESTIC MANUFACTURING CAPACITY. HOW WOULD YOU INTERPRET THAT? >> CHINA HAS BEEN A TREMENDOUS ENGINE FOR GROWTH, DISRUPTION, AND INNOVATION AND I WOULD NOT WANT TO BET AGAINST CHINA. DO WE HAVE HOLDINGS IN? THEY ARE TREMENDOUS COMPANIES. COMPANIES LIKE SK HYNIX AND ASML ARE ALMOST IN A LEAGUE OF THEIR OWN. TSMC HAS CREATED A MONOPOLY AT THE LEADING EDGE OF CHIPS AND THAT WILL BE DIFFICULT TO DISRUPT NOT JUST BECAUSE OF ACCESS TO CAPITAL, WHICH IS A LIMITING FACTOR GIVEN THE AMOUNT OF MONEY IT TAKES TO BUILD A LEADING FAB BUT ALSO BECAUSE THERE IS SO MUCH INHERENT PROCESS KNOWLEDGE THAT TSMC HAS BUILT UP OVER DECADES AND THAT IS HARD TO REPLICATE EVEN IF CHINESE COMPANIES HAD ACCESS TO THE EQUIPMENT THEY NEED, WHICH THEY DO NOT BECAUSE EXPORT CONTROLS. A SIMILAR STORY WILL PROBABLY HAPPEN WITH SK HYNIX, WHERE A GROWING PORTION OF REVENUE AND EARNINGS ARE COMING FROM HIGH BAND WITH MEMORY, WHICH IS COMPLICATED TO MAKE AND REQUIRES COMPLEX PROCESSES AND EQUIPMENT AND THEY DO NOT HAVE ACCESS TO A LOT OF THAT EQUIP IT YET. WILL THEY BE ABLE TO REPLICATED OVER TIME? PERHAPS. BUT THAT WILL TAKE TIME. ED: IF I WAS GOING TO GIVE IT THE UMBRELLA LABEL OF THE AI TRADE, YOUR NON-US FOCUS, VERY CHIP CONCENTRATED IN. WHERE IS THE NON-US AI OPPORTUNITY OUTSIDE OF SEMI CONDUCTORS THAT YOU LOOK AT NOW? >> THERE ARE A NUMBER OF THEM BUT I'LL PULL OUT TWO EXCITING ONES THAT REPORTED RECENTLY. I WILL GIVE YOU SOME NEW NEWS. THAT IS SHOPIFY AND RICOTTA LABOR -- MERCADO. THERE IS SOME RECOGNITION THAT WHAT SHOPIFY IS DOING IS BEARING FRUIT WITH COMPLEXITY FOR MERGERS AND CONSUMERS AND AI INTRODUCES MORE COMPLEXITY INTO THE SHOPPING JOURNEY SO INCREASINGLY AUTONOMOUS AGENTS ARE CAPABLE OF MAKING DECISIONS FOR CONSUMERS AND THAT MEANS YOU NEED MORE OF A SOURCE OF GROUND TRUTH FOR THOSE AGENTS TO RELY ON WHEN OFFERING UP POTENTIAL PURCHASES TO USERS SO CATALOGS, THEIR RECORD OF ITEMS MERCHANTS HAVE AND THE METADATA ASSOCIATED WITH THAT IS SHOWING TWO TIMES HIGHER CONVERSION ON ORDERS THAN SCRAPING WEBSITE DATA WHEN AI AGENTS ARE INVOLVED AND THAT IS TREMENDOUS FOR A COMPANY THAT MONETIZES BASED ON GM. ON THE OTHER HAND, IT IS ALMOST A CLASSIC EXAMPLE OF INVESTORS NOT TAKING THE LONG TERM VIEW HERE BECAUSE THEY ARE DOING SOMETHING THEY HAVE DONE MULTIPLE TIMES IN THE PAST WHERE THEY ARE INVESTING SUBSTANTIALLY IN GROWING USERS BECAUSE THEY SEE THIS AS A CRITICAL INFLECTION POINT IN THE MARKETS AND SO THEY ARE SEEING STRONG USER GROWTH ON THE BACK OF LOWER SHIPPING REQUIREMENTS AND LOWER TAKE RATES FOR MERCHANTS AND AT THE SAME TIME THEY ARE INVESTING IN AI TO SPEED UP DEVELOPMENT INTERNALLY SO THEY HAVE SEEN 75% HIGHER DEPLOYMENT OF CODE INTERNALLY AND AT THE SAME TIME AS A NUMBER OF ROLLBACKS SO NOT ONLY ARE THEY MOVING FASTER, THEY ARE MOVING AT A HIGHER QUALITY AND I THINK THAT IS EXCITING AND THE MARKET IS NOT RECOGNIZING THAT. ED: SHOPIFY HAS U.S. LISTED SHARES BUT IS A CANADIAN COMPANY. PAULINA MCPADDEN, THANK YOU. GAMESTOP IS SAID TO BE CONSIDERING PULLING A 56 BILLION DOLLAR BID FOR EBAY. WE WILL HAVE THE DETAILS OF THAT REPORT NEXT. THIS IS BLOOMBERG TECH. >> I'M NOT GOING TO CALL>> MY SHOTS BUT WE ARE COMING FOR EBAY ONE WAY OR ANOTHER. ED: THAT WAS GAMESTOP CEO RYAN COHEN A MONTH AGO SIGNALING FULL SPEED AHEAD WITH HIS OFFER FOR EBAY. TODAY, THAT CONVERSATION SHIFTED. SOURCES TOLD BLOOMBERG HE MAY PULL THE $56 BILLION BID AND IS CONSIDERING A PARTNERSHIP OR JOINT VENTURE WITH EBAY INSTEAD. BAILEY LIPSCHULTZ AND SPENCER JOIN US WITH DETAILS. I WILL START WITH YOU ON THE DEAL SIDE OF THIS. WE ARE REPORTING HE IS CONSIDERING PULLING THE PIN. THERE IS THE ADDED LAYER THAT GAMESTOP WILL BE ONE OF THE BIGGEST SHAREHOLDERS. GO OVER WHAT WE ARE REPORTING. >> POTENTIALLY PULLING THE BED AND PURSUING A JOINT VENTURE. THE SYNERGY IN HIS MIND IS -- THE SYNERGIES THAT THEY WOULD HAVE -- GAMESTOP IS THE SECOND LARGEST SHAREHOLDER OF EBAY BEHIND VANGUARD. WITH A STICK JUST UNDER 10% SO A SIZABLE STAKE IN THE COMPANY. GAMESTOP HAD BEEN DOING EVERYTHING THEY COULD TO RAISE CAPITAL AND TRY TO DIVERSIFY OFFERINGS PREVIOUSLY, LEADING INTO THINGS LIKE COLLECTIBLES AND AS YOU TALK TO HIM ABOUT, SETTING ASIDE ON A DEAL AND A TAKEOVER OF EBAY, A COME PAY THAT IS LARGER THAN GAMESTOP. ED: THE IDEA OF THIS JOINT VENTURE -- RYAN COHEN WANTS TO LEVERAGE THEIR PHYSICAL STORE FOOTPRINT. EXPLAIN A REPORTING THERE BUT ALSO THE HISTORY OF WHERE EBAY WOULD FIT WITH THAT. >> THE BIG LESSON HERE IS IF YOU ARE GOING TO ANNOUNCE TO THE WORLD A $56 BILLION DEAL YOU SHOULD MAKE SURE YOU HAVE $56 BILLION. BUT WITH SWORDS AT THE NOTION IS GAMESTOP HAS A NETWORK OF STORES ALL OVER THE COUNTRY AND PEOPLE COULD USE THOSE STORES TO BRING IN COLLECTIBLES AND HAVE THINGS AUTHENTICATED AND SUCH. EBAY HAS TRIED SIMILAR VERSIONS OF THAT WITH DECLUTTERING YOUR CLOSET AND GARAGE, BRINGING YOUR GOLF CLUBS TO FEDEX LOCATION. THERE WAS A BIG INITIATIVE 10 YEARS AGO SO IT IS NOT REALLY A FRESH IDEA. YOU CAN THINK OF ALL THE STUMBLES AMAZON HAS HAD WITH PHYSICAL STORE SPACE. IT DOES NOT AUTOMATICALLY WORK AND IT IS NOT A FRESH, INNOVATIVE IDEA SO IT IS SOMETHING POTENTIALLY WORTH EXPLORING BUT THERE ARE ALSO REASONS TO NOT GET TOO EXCITED ABOUT IT. ED: GAMESTOP IS FLAT. EBAY IS DOWN MORE THAN 3%. MARKETS ARE INTERPRETING THIS REPORTING HOW? BAILEY: IT REMOVES A LITTLE UPSIDE OPTIONALITY FOR EBAY. IF YOU LOOK AT A 12 MONTH CHART OF GAMESTOP, IT HAS BEEN DOWN INTO THE RIGHT. THIS COMPANY DILUTED HIS COMPANY SO THAT LACK OF WEAKNESS FROM GAMESTOP IS NOT SURPRISING GIVEN THAT EBAY SHUT DOWN THIS IDEA NOT LONG AGO. ED: TAGTEAM IT ON A REPORTING THAT RYAN COHEN IS CONSIDERING PULLING OUT OF HIS BID FOR EBAY. COMING UP, A DIG INTO MICROSOFT'S VISION FOR THE FUTURE WITH CHARLES LAMANNA. A PLATFORM THAT RECENTLY HAD MICROSOFT EARNINGS WHERE GROWTH IN COPILOT WAS A BIG FUTURE. IT IS HALF TIME. MARKETS KIND OF NOT MUCH TO TALK ABOUT TODAY, FLAT, SOME UNDERPERFORMANCE IN CHIP STOCKS AND BITCOIN TRADING AROUND $64,300 PER TOKEN. HOPING TO CUT TO BEAUTIFUL SHOTS OF SAN FRANCISCO. THIS IS BLOOMBERG TECH. ED: WELCOME BACK TO BLOOMBERG TECH. INTEL WILL SELL PUBLIC SHARES FOR THE FIRST TIME SINCE IT DELISTED IN 1971. AN EQUITY OFFERING THE COULD RISE BEYOND $17 BILLION. THE STOCK IS MORE THAN TRIPLED YEAR-TO-DATE AND HAS GOTTEN A LOT OF PROJECTS IT'S COMMITTED TO. CAPEX IS CLEAR IN THE MARKET A LITTLE WORRIED ABOUT DILUTION. JEFFRIES DOWNGRADING THE STOCK AFTER RUNNING SUPPLY CHAIN CHECKS INCLUDING AN ALL GLASS IPHONE DUE IN SEPTEMBER OF 2020 SEVEN IS CANCELED WHICH HAS THEM WORRIED ABOUT HIGHER AVERAGE SELLING PRICE IS WAITING ON THE SHARES. LET'S TAKE A LOOKING AT SHARES OF META NOW UP 1%. THEY'D BEEN UP IN THE SESSION. THE COMPANY INTRODUCED A NEW DOWNLOADABLE AI MODEL THAT CAN RUN ON A PERSONAL COMPUTER. IN A 6500 WORD ESSAY, THE MEDICINE HE THE VISION OF AI THAT'S TIGHTLY CONTROLLED OR CENTRALIZED WHICH IS BEEN CHAMPIONED BY HE SAYS SOME U.S. RIVALS. BUT SKIDMORE WITH KURT WAGNER. THE NEWS IS A 30 BILLION PARAMETER MODEL THAT EVERYONE CAN USE. THE BIGGER PICTURE IS ZUCKERBERG SAYING AI SHOULD NOT BE CONTROLLED BY A FEW COMPANIES IT SHOULD BE ACCESSIBLE TO EVERYONE. WHAT'S THE NEED TO KNOW HERE? >> THIS IS THE OPEN SOURCE OPEN-WEIGHT STRATEGY THEY HAVE EMPLOYED FOR YEARS. YOU MAY REMEMBER THEY USED TO CALL IT LLAMA LIKE LLAMA WAS THEIR MODEL THEIR OPEN SOURCE. THIS WAS SORT OF THE WHOLE IDEA BEHIND THE COMPANY STRATEGY. OVER THE LAST YEAR OR SO WE'VE SEEN THEM PITTED TO CLOSED MODELS. THEY SAID THEY'RE GOING TO SELL ACCESS TO AN API. TO ME THIS IS SORT OF A REMINDER THAT META AND MARK ZUCKERBERG HAVE BEEN ON THE OPEN SOURCE BANDWAGON FOR A LONG TIME. AND THEY SEE THE PENDULUM SWINGING BACK IN THAT DIRECTION OVER THE LAST COUPLE OF WEEKS AND OBVIOUSLY TRYING TO JUMP ON THAT AND MAKE SURE THEY ARE PART OF THE CONVERSATION. ED: META IS ONE OF THE BIGGEST OPERATORS OF DATA CENTERS AROUND THE WORLD. HERE IN THE U.S. THEY ARE ON THE HOOK FOR HUNDREDS OF BILLIONS OF DOLLARS IN PROJECTS. THEY ANNOUNCED A $1 BILLION FUND WHICH SEEMS IS MUCH TARGETED AND SUPPORTING THOSE GEOGRAPHIES WHERE THEY ARE BUILDING NOT THE PROJECTS THEMSELVES. WHAT IS THE IDEA? >> THESE DATA CENTER PROJECTS ARE VERY MASSIVE FROM A FINANCIAL STANDPOINT. THEY ARE VERY DISRUPTIVE AND IMPACTFUL ON THE COMMUNITIES AS WELL, OUR COLLEAGUE RILEY GRIFFIN SPENT A LOT OF TIME IN LOUISIANA LOOKING AT THEIR DATA CENTER BUILD OUT THERE. IN SOME CASES IT CAN BE GOOD THINGS. THEY'VE TALKED ABOUT HOW A LOT OF TEACHERS IN THE AREA ARE GETTING BIG BONUSES BECAUSE THEY ARE PAYING MORE IN TAXES. IT CAN ALSO BE DISRUPTIVE, IT CAN IMPACT IN NEGATIVE WAYS, OF THE ENVIRONMENT. SO I THINK THIS IS AN OPPORTUNITY FOR THEM A BILLION DOLLARS ON THE SCALE SPENDING ON THESE DATA CENTERS. I DON'T WANT TO SAY IT'S A LITTLE BIT SMALL BUT THEY ARE COMING OUT SAYING WE ARE AWARE OF THE FACT WHEN WE BUILD A DATA CENTER IN YOUR BACK YARD AND IMPACT THE COMMUNITY WE WILL PUT MONEY TOWARDS TRYING TO HELP OUT IN THE WAYS WE CAN. ED: THANK YOU VERY MUCH INDEED. LET'S STICK WITH THE THEME OF AI DEPLOYMENT AND ADOPTION. MICROSOFT SAYS AI AGENTS ALREADY FUNDAMENTALLY CHANGING HOW IT BUILDS SOFTWARE AND THAT FINANCE AND OTHER KNOWLEDGE WORK IS NEXT. CHARLES LAMANNA DETAIL THAT ARGUMENT IN A NEW POST IT COMES AS MICROSOFT PASSED 30 MILLION PAID SEATS IN WHAT WAS A BLOWOUT EARNINGS REPORT LAST MONTH. CHARLES JOINS US NOW. AN INTERESTING PLACE TO START WAS USE A CODING AGENTS OF FUNDAMENTALLY CHANGED HOW MICROSOFT IS WORKING INTERNALLY. THAT IS PHASE ONE. GOING FORWARD WHAT IS THAT LOOKING LIKE IN YOUR DAY TODAY? CHARLES: SUPER EXCITED TO GET A CHANCE TO TALK ABOUT WHAT THEY'RE DOING. IF WE LOOK AT SOFTWARE DEVELOPMENT THE BIG CHANGE IN THE PAST PEOPLE WOULD WRITE THEIR CODE BY HAND. THEY WOULD BUILD IT AND THE CONSTRAINT TO DO SOFTWARE DEVELOPMENT WAS ALL ABOUT THAT CODING ASPECT. WITH AGENTIC CODING ARE SOFTWARE ENGINEERS ARE SPENDING TIME OVERSEEING THESE SYSTEMS WILL GENERATE THE CODE. SO THE JOB IS TO BUILD THINGS LIKE VERIFIERS OR VALUATIONS THROUGH THINGS LIKE ARCHITECTURE IN COORDINATION. IT IS VERY IMPORTANT TO HAVE EDITORIAL JUDGMENT IN TERMS OF THE PRODUCT GOING FORWARD. A VERY DIFFERENT WORLD FROM THE START TO THE END OF 2026. ED: EVERY COMPANY IS DIFFERENT. THEY'VE TAKEN A DIFFERENT ATTITUDE TOWARDS THIS. THE COMMON THEME IS A LOT OF THE WORK GREATER CAUTION OF THE WORK IS IN WRITING NEW CODE RELATIVE TO USING A CODING AGENT TO REVIEW OR REWRITE OLD COLD. -- OLD CODE. IS THAT THE CASE FOR THEM AS WELL? CHARLES: NEW PROJECTS AND CAPABILITIES THOSE BENEFIT THE MOST FROM AGENTIC CODING. EXISTING PRODUCTS THAT ARE BEEN AROUND FOR 10 OR 20 YEARS IN THE CASE OF MICROSOFT ARE SEEING SIMILAR BENEFITS IN TERMS OF EFFICIENCY AND PRODUCTIVITY. I GOT AN EMAIL FROM SOMEONE ON MY TEAM TALKING ABOUT HOW SHAREPOINT IS HAVING AN AGENTIC CODING REVOLUTION AND VERY DRAMATICALLY ACCELERATING PROGRESS. ED: THIS STARTS PHASE ONE WITH SOFTWARE. WHAT'S NEXT, GIVE ME MORE TANGIBLE EXAMPLES OF SOMETHING THAT MICROSOFT DOES COMPLETELY DIFFERENTLY TODAY THAT IT WASN'T DOING A YEAR OR EVEN SIX MONTHS AGO. CHARLES: ONE THAT HAS REALLY CHANGED ACROSS THE COMPANY IS HOW WE DO AROUND DATA ANALYSIS AND -- BOARDING REPORTS. WE HAD CENTRAL TEAMS THAT WOULD BUILD THESE VISUALIZATIONS FOR OUR SALES LEADERS ARE FINANCE LEADERS OR HR LEADERS. INSTEAD WE ARE STARTING TO SEE PEOPLE IN HR AND FINANCE AND SALES ARE DOING THE ANALYSIS THEMSELVES. SHARING THEM ACROSS THE COMPANY. WE HAVE MUCH LESS OF A BOTTLENECK AROUND UNDERSTANDING OF DATA AND PEOPLE WHO REALLY UNDERSTAND WHAT THEY NEED TO SEE TO MAKE A DECISION BUILDING THESE REPORTS. THAT HAS TWO BIG DEFECTS. THE FIRST IS DRAMATICALLY REDUCED THE COST OF THE INVESTMENT WE SPEND ON PEOPLE BUILDING DASHBOARDS BECAUSE IT IS DIFFUSED INTO THE ORGANIZATION. WE MAKE BETTER DECISIONS FASTER. MORE ANALYSIS AND WE DON'T HAVE TO WAIT FOR A CENTRAL TEAM TO GO THROUGH BACKLOG. OUR LEADERS CAN DO IT THEMSELVES IN AN AFTERNOON USING COPILOT. >> YOU DON'T HAVE TO WAIT FOR A CENTRAL TEAM TO GO THROUGH THE BACKLOG. I SPENT TIME WITH THE CFO WHO HAD A LARGE DISH OF A LARGE PRIVATE TECH COMPANY WITH A VERY LEAN TAX TEAM BECAUSE THEY BUILT DASHBOARDS AS YOU DESCRIBED. THE QUESTION IS DOES THAT MEAN FEWER PEOPLE NECESSARY IN THOSE ORGANIZATIONS BECAUSE ALL THE EFFICIENCY YOU HIGHLIGHTED? CHARLES: THE BIG THING WE ARE SEEING IS NOT REDUCING THE TEAM NECESSARILY IT'S REALLY ABOUT DOING MORE INTERESTING WORK. IF YOU WENT TO MOST COMPANIES THEY TRADE COST FOR SOME TOPLINE GROWTH AND MESS OF DOING, THEY ARE TAKING THE SURPLUS TIME AND PRODUCTIVITY AND REINVESTING IN BUSINESS AND THINGS LIKE RESEARCHING PRODUCTS, IMPROVING THE CUSTOMER ENGAGEMENT EXPERIENCE WITH BETTER RETENTION AND MORE LONG-TERM VALUE OR TURNING AROUND AND MAKING THE CASE WHERE THEY ARE MORE WILLING TO STAY AROUND. ED: COPILOT SEEMS TO HAVE SO MUCH TRACTION. PASSING 30 MILLION IN THE JULY UP FROM 20 MILLION IN THE MARCH QUARTER. IS THAT TRAJECTORY CONTINUED INTO THE SEPTEMBER QUARTER, WHAT IS THE RATE OF COPILOT GROWTH RIGHT NOW? >> LOOKING AT THE LAST SIX MONTHS OF COPILOT IT'S BEEN A TURNING POINT FOR US. THE MOST RECENT ONE WE JUMPED TO ABOUT 30 MILLION. IT TOOK US A FEW YEARS WE DID JUST IN SIX MONTHS. A LOT OF THAT IS BECAUSE PEOPLE USING THE PRODUCT MORE INTENSELY. A LOT OF INITIAL ROLLOUTS HAVE BEEN SUCCESSFUL. WE HAVE GREAT ENGAGEMENT. THE NUMBER OF CONVERSATIONS PEOPLE HAVING WITH COPILOT MORE THAN DOUBLING YEAR-OVER-YEAR. COPILOT HAVING THE SAME ENGAGEMENT WITH OUTLOOK AND TEAMS. SO THE STANDARD KNOWLEDGE WORKER APPS PEOPLE USE ALL THE TIME COPILOT IS RIGHT THERE WITH THE SAME LEVEL OF ENGAGEMENT. THAT'S BEEN VERY ENCOURAGING FOR US AND WE WILL TRACK THAT THROUGH THE REST OF THE YEAR. OUR EARNINGS SHARED SOME GUIDE FOR THE NEXT FEW MONTHS SO WE WILL BE TRACKING THAT CLOSELY. ED: IF SOMEONE'S COMING TO COPILOT FOR THE FIRST TIME, WHAT ARE YOU SEEING IN THAT KIND OF GROWTH IN THE USER BASE OR PAID SEATS THAT MIGHT HAVE BEEN HISTORICALLY OUTSIDE OF MICROSOFT CUSTOMER BASE? CHARLES: THREE BIG THINGS. FIRST IS WE HAD THIS MULTI-MODEL STRATEGY FOR A YEAR AND IN THE BEGINNING THERE REALLY WAS GPT AND OPENAI MODELS IS THE MAIN SELECTION PEOPLE WANTED. WE HAVE SINCE ADDED CLAUDE FROM ANTHROPIC. A PARTNER IN EUROPE AND WE ARE WORKING WITH OUR OWN MICROSOFT AI MODELS FOR GREAT COST EFFICIENCY BENEFIT AND WE ARE LOOKING AT OPEN SOURCE MODELS TO PROVIDE MORE VARIABILITY. THERE IS ONE APP AND HAVING ANY NUMBER OF AVAILABLE MODELS AVAILABLE IS RADIATING WITH CUSTOMERS BECAUSE THEY DON'T WANT TO GET LOCKED IN. IF YOU USE THE MICROSOFT APPLICATIONS LIKE XL OR OUTLOOK, COPILOT IS INTEGRATED RIGHT THERE. YOU DON'T HAVE TO REIMAGINE WORKFLOWS OR RETHINK WHERE YOU SPEND YOUR TIME. IT HAS THAT IN THE FLOW OF WORK. THAT'S BEEN A GREAT DRIVER OF ADOPTION USAGE. THE LAST BIT IS EVERY COMPANY HAS ACCESS TO THE SAME MODELS. THERE IS NO DIFFERENTIATION IN ACCESS TO THE MODELS. IT COMES FROM YOUR CONTACTS THAT YOU BRING. WE MAKE IT EASY SO ALL THE DATA IN THE ECOSYSTEM INSIDE THE MAILBOX INSIDE YOUR FILES AND DOCUMENTS AND YOUR DASHBOARD REPORTS COME TOGETHER AND WE HELP SERVICE IT FOR OUR CUSTOMERS. YOU GET THE MODEL PLUS WHAT MAKES YOU UNIQUE. THAT IS WHAT'S STARTING TO RESONATE. ED: MICROSOFT EVP OF COPILOT AND AGENTS, GREAT TO HAVE YOU ON BLOOMBERG TECH. COMING UP, DISCUSSING HER FIRMS -- THERE FIRMS PIVOT FROM PRE-SEED TO HIGHER CONVICTION EARLY STAGE INVESTING. THIS IS BLOOMBERG TECH. ♪ SOUTH PARK COMMONS, WHICH HAS BACK START UPS INCLUDING LUMA AI, LAUNCHED A NEW 570 $5 MILLION FUND. AS THE VENTURE FIRM EXPANDS IS INVESTING FROM PRE-SEED TO HIRE CONVICTION EARLY-STAGE BETS, COFOUNDER AND GENERAL PARTNER ADITYA AGARWAL JOINS US NOW. SUPER INTERESTING STORY, TRYING TO UNDERSTAND THE STRATEGIC CHANGE HERE BUT READS LIKE THEY'RE ALL THESE AMAZING PEOPLE YOU BACK AT THE EARLIEST OPPORTUNITY AND YOU WANT TO CONTINUE BACKING THEM OF THAT MIGHT MEAN >> A BIG EJECT. THANK YOU FOR HAVING ME. IT IS EXCITING TO BE TALKING TO YOU ABOUT OUR NEW FUND. WE STARTED SOUTH PARK COMMONS TO WORK WITH EARLY-STAGE FOUNDERS TO INFLICT THEIR AMBITION AND HELP THEM PURSUE THE BIGGEST, GRANDEST IDEAS. ONE OF THE THINGS WE NOTICED WHEN WE STARTED IT IN 2016 WAS THAT THERE WAS ALMOST DEBT IS ALMOST TOO EASY TO WORK ON YOUR FIRST IDEA THAT YOU THINK OF AND YOU SHOULD TAKE A LITTLE BIT OF TIME TO FIND THE VERSION OF THE IDEA THAT IS THE BIGGEST, MOST AMBITIOUS VERSION AND SO WITH THAT FRAME A COUPLE YEARS AGO WE NOTICED THAT THE AI REVOLUTION WAS FUNDAMENTALLY CHANGING THE SCOPE OF AMBITION OF OUR MEMBERS . FIVE YEARS AGO QUITE A LOT OF FOLKS WERE THING ABOUT START UPS AND MORE LIMITED IDEAS. TODAY, PEOPLE ARE COMING TO US WITH IDEAS FOR BUILDING NUCLEAR POWERED CARGO SHIPS, ALTERNATIVE VERSIONS OF LAUNCH INTO SPACE, LOOKING TO BASICALLY TRANSFORM OUR CURRENT INFRASTRUCTURE IN AMERICA AND I THINK THAT A LOT OF OUR TAKE WITH OUR NEW FUND IS WE WANT OUR -- THE AMBITION OF OUR FUND TO MATCH THE MISSION OF MEMBERS. IT DOES MEAN BEING ABLE TO WRITE BIGGER CHECKS AND TO BE A HIGH CONVICTION PARTNER FURTHER DOWN THE CAPITAL STACK. ED: YOU HAVE A MINUS ONE TO ZERO MODEL. WHAT DOES THAT MEAN? >> IT MEANS WHEN YOU HAVE TO LEAVE A BIG JOB OR -- IT IS SUPER TEMPTING TO GO AND WORK ON THE FIRST THING THAT COMES TO YOUR MIND. WHEN I LEFT, CEO THERE WAS LUCKY TO HAVE A NUMBER OF AMAZING OPTIONS. GO START ANOTHER COMPANY, JOIN AS AN EXACT. SILICON VALLEY IS GOOD AT GIVING YOU THE PATTERN MATCH TO WHAT YOU SHOULD DO. IF YOU HAVE DONE X, YOU SHOULD DO Y. OUR TAKE WAS SLOW DOWN. TAKE SOME TIME AND FIGURE OUT WHAT YOU'RE PASSIONATE ABOUT AND RECALL THAT -- WE DID NOT HAVE THIS WILL BE STARTED BUT WE NOW CALL IT GESTATION PHASE WHERE YOU LET IDEAS GESTATE AND YOU TINKER AND EXPLORE AND THEN OVER THE COURSE OF 3, 6, NINE MONTHS YOU ALLOW THE IDEA TO CRYSTALLIZE INTO THE BIGGEST FORM OF WHAT IT CAN BE. ED: LET'S TAKE COGNITION AND SCOTT WE WAS A CASE STUDY. HE IS A REGULAR CONTRIBUTOR ON THE SHOW. THEY HAVE HAD MASSIVE SUCCESS AND GROWTH AND MOMENTUM. TAKE THIS FUND AND APPLY TO HOW YOU NOW CONTINUE BACKING THEM. ADITYA: SCOTT STARTED HIS FIRST COMPANY, WHICH WAS CALLED LUNCH CLUB, AND HE WAS ONE OF THE FIRST MEMBERS WE HAD CIRCA 2017, 2018 AND WHEN I LOOK AT WHAT SCOTT STARTED WORKING ON THREE YEARS AGO OR FOUR YEARS AGO NOW, BASICALLY WHAT WILL IT LOOK LIKE , I THINK WHEN I LOOK AT HOW I WOULD APPLY THE NEW FUND, I WOULD JUST BACK OF THE TRUCK. AND BASICALLY RIGHT AS BIG A CHECK AS POSSIBLE AND CONTINUE TO BACK HIM IN LATER ROUNDS BUT ALSO WORKING CLOSELY WITH THE ECOSYSTEM. IT IS EASY TO SEE FUNDING IS A ZERO-SUM GAME BUT I BELIEVE TO ALLOW A COMPANY TO ACHIEVE SUCCESS YOU NEED TO WORK WITH ALL OF THE FOLKS DOWNSTREAM AS WELL. ED: IT IS INTERESTING TO SEE WHAT IS ALSO HAPPENING WITH A FOCUS AT THE EARLIER STAGE. ADITYA AGARWAL AT SOUTH PARK COMMONS, THANK YOU. LET'S GET TO NEW YORK. YAHAIRA: IT IS TIME FOR TALKING TECH. TSMC REPORTED A 45% RISE IN HIS MONTHLY SALES, DEMONSTRATING DEMAND FOR HARDWARE HAS NO SIGNS OF SLOWING DOWN WITH REVENUE REACHING 14.5 BILLION DOLLARS IN JULY. THE CHIPMAKER ALSO RAISED SPENDING AND REVENUE PROJECTIONS FOR THE YEAR. BOEING WILL SELL SEVERAL OF ITS UNITS THAT SPECIALIZE IN DEVELOPING TECHNOLOGIES FOR TAXIS AS BOEING LOOKS TO SHARPEN HIS FOCUS ON ITS CORE COMMERCIAL AND DEFENSE UNITS. ARCHER WILL TAKE OVER THE SKY GRADE UNIT WHILE BOEING WILL TAKE A STAKE IN ARCHER. A NEW PARTNERSHIP MADE BY ANTHROPIC WITH GIC WILL FOCUS ON ESTABLISHING INFRASTRUCTURE, A NEW ENTITY TO DEVELOP, OPERATE, AND LEASE DATA CENTER FACILITIES. GIC WILL ON THE INFRASTRUCTURE AND FUND THE PROJECT WHILE ANTHROPIC WILL PROVIDE AI COMPUTE DEMAND AND LONG LEASE COMMITMENTS. ED: COMING UP, HOLLYWOOD IS HAVING A COMEBACK YEAR. WHAT IS GETTING PEOPLE OFF THE COUCH AND BACK INTO THEATERS? WE WILL LOOK AT THAT NEXT. THIS IS BLOOMBERG TECH. ♪ FIVE MOVIES HAVE CROSSED THE $1 BILLION MARKET. THIS IS THE YEAR WE WENT BACK TO THE MOVIES. LUCAS SHAW LEADS OUR TEAM AT SCREEN TIME. IT IS PACKED FULL OF DATA BUT BASICALLY THERE ARE THOSE FIVE TITLES, THE BALANCE OF THE CALENDAR YEAR WITH WHAT IS TO COME, AND RIGHT NOW WE ARE HEADING FOR THE BEST YEAR THE BOX OFFICES 2019. THE QUESTION IS WHY. >> VOLUME. YOU MENTIONED TITLES THAT CROSSED A BILLION. DESPITE THE NEW SPIDER-MAN MOVIE GOING TO BE ONE OF THE HIGHEST GROSSING MOVIES OF ALL TIME, THE ODYSSEY'S CHRIS FOR NOLAN'S -- CHRISTOPHER'S NOLAN'S, THERE ARE HITS THROUGH THE YEAR OF DIFFERENT SKILL AND SIZE SO YOU GO BACK A COUPLE MONTHS AGO AND EVERYONE WANTED TO TALK ABOUT OF SESSION IN BACK ROOMS, WHICH WERE THE HORROR MOVIES THAT ENDED UP OUT GROSSING STAR WARS SO I THINK BASED ON THAT AS A POSITIVE SIGN TO HAVE EVERYTHING FROM THE SMALLEST TO THE BIGGEST , YOU HAVE A LOT OF POTENTIAL LESSONS TO LEARN FROM THE YEAR IN TERMS OF WHAT TYPES OF MOVIES AND HOW YOU WANT TO SPACE THEM OUT AND HOW MUCH TIME YOU GIVE FRANCHISES BETWEEN NEW TITLES. ED: WHAT IS TO COME THE REST OF THE YEARS INTERESTING. DECEMBER, AVENGERS AND DUNE PART THREE. THE TIMINGS INTERESTING BUT IT COULD PUSH THE YEAR DEEPER INTO A SUCCESSFUL TERRITORY. >> IT IS FUNNY HOW PEOPLE REACT TO THE MOVIE BUSINESS. IF YOU GO BACK TO FEBRUARY OR MARCH, EVERYONE WAS FREAKED OUT BECAUSE BUSINESS HAS BEEN HURT SINCE THE PANDEMIC. IT HAS NEVER REALLY BOUNCED BACK. WE HAVE HAD SOME HOPE WITH TOP GUN MAVERICK BUT NEVER SUSTAINED SUCCESS. THE NEXT FEW MONTHS WILL BE PRETTY FALLOW. THERE IS NOT A LOT COMING OUT IN SEPTEMBER OR OCTOBER BUT I THINK THERE ARE A COUPLE MOVIES AROUND THANKSGIVING, THE NEW HUNGER GAMES AND A NEW IN THE FOCKERS FRANCHISE, THAT WILL BE BIG. ED: PROJECT HAIL MARY. AMAZON WILL CONCEDE THEY DIDN'T EXPECT IT TO BE SUCH A HIT. >> WE SPOKE WITH THE HEAD OF THEIR MOVIE STUDIO, WHO WAS LIKE IF YOU TOLD US THIS WAS GOING TO BE A MOVIE THAT GROSSED ALMOST $700 MILLION WHO WOULD HAVE SAID YOU WERE CRAZY. WORTH NOTING IT WAS BASED ON A BOOK BY THE AUTHOR WHO WROTE THE MARTIAN, WHICH BECAME A MASSIVE HIT. ED: I LOVED PROJECT HAIL MARY. I THINK ABOUT THAT A LOT. THANK YOU VERY MUCH INDEED. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TACK. YOU'RE LOOKING AT THE MARKETS AND THE TOP STORIES WE HAVE BEEN TRACKING ABOUT WITCHES TECH STOCKS LARGELY FLAT. UNTIL COMING BACK TO THE EQUITY MARKETS, FIRST PUBLIC SHARE SALES SINCE IT LISTED IN 1971 AND THEN APPLE DOWNGRADING JEFFRIES. THERE IS A LOT OF CONCERN ABOUT THEM BEING ABLE TO MAINTAIN HIGHER AVERAGE SELLING PRICES BUT IT SAYS BASED ON SUPPLY CHAIN CHECKS APPLE'S COUNSELING AND ALL GLASS IPHONE, SOMETHING REPORTED DEEPLY ON. SO MUCH TO RECAP IN THE BROADCAST. YOU KNOW WHERE TO FIND IT ON THE BLOOMBERG PLATFORMS AND ONLINE. WHAT A START TO THE WEEK. THIS IS BLOOMBERG TECH. ♪