Bloomberg Audio Studios, podcasts, radio news from the heart of where innovation, money and power collide in Silicon Valley and beyond. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

Bloomberg Audio Studios, podcasts, radio news from the heart of where innovation, money and power collide in Silicon Valley and beyond. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

Live from New York. This is Bloomberg Technology. Coming up.

Live from New York. This is Bloomberg Technology. Coming up.

Apple hit with analyst downgrades as tariff.

Apple hit with analyst downgrades as tariff.

And growth warriors they increase.

And growth warriors they increase.

Will break down the company's latest earnings plus roadblocks.

Will break down the company's latest earnings plus roadblocks.

Daily users jump twenty six percent mid efforts to bring in new players. We had the CEO later this.

Daily users jump twenty six percent mid efforts to bring in new players. We had the CEO later this.

Hour and a conversation with the US Energy Secretary after one hundred days of Trump policies.

Hour and a conversation with the US Energy Secretary after one hundred days of Trump policies.

But first we check in on these markets. Look, we've got enough of gains.

But first we check in on these markets. Look, we've got enough of gains.

We are bouncing back from our April cell off. We're up three point two percent over the last five training days. We add a cool almost five hundred billion dollars in terms of market cap to this key tech benchmark. And once again it's the second week of gains. We are seeing this risk on attitude return with the macro data, those jobs ratings overall ed, but also maybe a sign of thuring in China US relations.

We are bouncing back from our April cell off. We're up three point two percent over the last five training days. We add a cool almost five hundred billion dollars in terms of market cap to this key tech benchmark. And once again it's the second week of gains. We are seeing this risk on attitude return with the macro data, those jobs ratings overall ed, but also maybe a sign of thuring in China US relations.

What have you got under the herd?

What have you got under the herd?

Right in that upward pressure at the next level interesting because there's downward pressure in the biggest names and technology. Apple is off by almost four percent. Very simply, it is a tariff stories earnings. There was weakness in China in the quarter, gone outperformance on iPhone, but Tim Cook told us there is going to be a nine hundred million dollar impact from tariffs in the current period. What does that even mean in the context of what Apple does around the world. Amazon forecasting for the current period operating income that's billions of dollars below what the street for uncertainty in tariffs, It's a very clear story in both socks arounder pressure.

Right in that upward pressure at the next level interesting because there's downward pressure in the biggest names and technology. Apple is off by almost four percent. Very simply, it is a tariff stories earnings. There was weakness in China in the quarter, gone outperformance on iPhone, but Tim Cook told us there is going to be a nine hundred million dollar impact from tariffs in the current period. What does that even mean in the context of what Apple does around the world. Amazon forecasting for the current period operating income that's billions of dollars below what the street for uncertainty in tariffs, It's a very clear story in both socks arounder pressure.

They are and we're going to have so much great analysis on both individual names as a whole. We go to Blue It's round for Stellca and Look earnings. Thus far the big megacap four we had this week. Microsoft Meta managed to bounce through these trade headwinds, but Apple and Amazon, with tangible goods do not.

They are and we're going to have so much great analysis on both individual names as a whole. We go to Blue It's round for Stellca and Look earnings. Thus far the big megacap four we had this week. Microsoft Meta managed to bounce through these trade headwinds, but Apple and Amazon, with tangible goods do not.

Yeah, thanks for having me so, I'd say overall, this earning season has been pretty positive for big tech. At least it was until yesterday afternoon. Apple in particular, people were already worried how much is tariff going to impact them? What is this going to mean for their growth, which was already sort of stalled relative to other big tech companies. What is this going to mean for its multiple which was already elevated relative to other big tech companies.

Yeah, thanks for having me so, I'd say overall, this earning season has been pretty positive for big tech. At least it was until yesterday afternoon. Apple in particular, people were already worried how much is tariff going to impact them? What is this going to mean for their growth, which was already sort of stalled relative to other big tech companies. What is this going to mean for its multiple which was already elevated relative to other big tech companies.

And it really I.

And it really I.

Don't think this was exactly the worst case scenario, but certainly it was a disappointment, and it just underlines a lot of the concerns that people already had about the stock.

Don't think this was exactly the worst case scenario, but certainly it was a disappointment, and it just underlines a lot of the concerns that people already had about the stock.

Let's focus on Apple in the context of the stock. How has the cell side reacted? What do we see in terms of downgrades on the stock from the street.

Let's focus on Apple in the context of the stock. How has the cell side reacted? What do we see in terms of downgrades on the stock from the street.

Well, we had at least two downgrades this morning. One of them is a cut to a cell rating, which is pretty rare for Apple. There's a lot of concern that maybe we haven't yet fully seen the impact of tariffs. Maybe this is going to be something that continues to build over the rest of the year. That was Jeffrey's downgrading the stock to an underperformed rating. We also had Rosenblatt which cut the stock to a neutral rating, warning just in general about you know, what is it going to take for a real inflection of growth? It says anai iPhone sort of supercycle upgrade is needed, and it says that it is becoming less likely as time goes.

Well, we had at least two downgrades this morning. One of them is a cut to a cell rating, which is pretty rare for Apple. There's a lot of concern that maybe we haven't yet fully seen the impact of tariffs. Maybe this is going to be something that continues to build over the rest of the year. That was Jeffrey's downgrading the stock to an underperformed rating. We also had Rosenblatt which cut the stock to a neutral rating, warning just in general about you know, what is it going to take for a real inflection of growth? It says anai iPhone sort of supercycle upgrade is needed, and it says that it is becoming less likely as time goes.

By the most Rhyan for Selica, thank you very much, stay with Apple earnings and bring in the Vila po power see a research director at IDC. I want to think about this in terms of all of the consumer electronics that Apple has built and moves around the world. If the company tells us that the impact of tariffs is nine hundred million dollars in the current period, what does that really mean? Is that significant? Is it a small hit? And how do you model for it? Yeah?

By the most Rhyan for Selica, thank you very much, stay with Apple earnings and bring in the Vila po power see a research director at IDC. I want to think about this in terms of all of the consumer electronics that Apple has built and moves around the world. If the company tells us that the impact of tariffs is nine hundred million dollars in the current period, what does that really mean? Is that significant? Is it a small hit? And how do you model for it? Yeah?

Now that's a great question. Thanks for having me. I think you know, if you look in for Apple, that number of the grand scheme of things isn't much, right, It's still less than two percent or h of their of their revenue, right. But I think a bigger question will be how will because they could still push that in with other like their revenue from coming from other product lines and for profitability from other places. But I think the bigger question for will be what will Apple do with prices? And that's what a question that Tim Cook didn't address, right? Will they increase prices on their devices? And that's traditionally something Apple hasn't done historically. They've never raised prices on their products mid cycle. So I'm, you know, very curious and I think everyone's really looking to see how Apple does that. But the but the other challenge, you know, is how they are going to navigate with their supply chain. And we've already seen that, right Apple's already demonstrated incredible flexibility in moving their supply chain already in q On ramping it up significantly, and they confirmed that right. There were earlier last week about them wrapping it up very fast from moving from India, but Tim Cook just confirmed that they moved about half of their nebula of the West market from India. Y.

Now that's a great question. Thanks for having me. I think you know, if you look in for Apple, that number of the grand scheme of things isn't much, right, It's still less than two percent or h of their of their revenue, right. But I think a bigger question will be how will because they could still push that in with other like their revenue from coming from other product lines and for profitability from other places. But I think the bigger question for will be what will Apple do with prices? And that's what a question that Tim Cook didn't address, right? Will they increase prices on their devices? And that's traditionally something Apple hasn't done historically. They've never raised prices on their products mid cycle. So I'm, you know, very curious and I think everyone's really looking to see how Apple does that. But the but the other challenge, you know, is how they are going to navigate with their supply chain. And we've already seen that, right Apple's already demonstrated incredible flexibility in moving their supply chain already in q On ramping it up significantly, and they confirmed that right. There were earlier last week about them wrapping it up very fast from moving from India, but Tim Cook just confirmed that they moved about half of their nebula of the West market from India. Y.

Yeah, can I jump in because you make such a clear case in the supply chain and the way in which that is being navigated.

Yeah, can I jump in because you make such a clear case in the supply chain and the way in which that is being navigated.

But we're looking right now at the demand side.

But we're looking right now at the demand side.

In China there was weakness once again despite some of those subsidies. How did Tim Cook manage to deflect what seems to be once again just a story they can't turn around?

In China there was weakness once again despite some of those subsidies. How did Tim Cook manage to deflect what seems to be once again just a story they can't turn around?

You know, China has been an area that they are you know, recently have been challenging. And that's what I'm saying.

You know, China has been an area that they are you know, recently have been challenging. And that's what I'm saying.

Before even the terrist story.

Before even the terrist story.

They've been these This weakness in China has been something that they've been dealing with and they will continue to deal We were already you know, baking this in our forecast, but this year the challenge from Huawe continues to grow. But at the same time there they are continued to be the leader in China in terms of the premium segment. They still have seventy percent share. But the silver lining for Apple is still not maybe not be in China this year, but they're still going in emerging markets. They are probably going to increasingly have more of their models move over to their you know, in house modem, which will help their profitability.

They've been these This weakness in China has been something that they've been dealing with and they will continue to deal We were already you know, baking this in our forecast, but this year the challenge from Huawe continues to grow. But at the same time there they are continued to be the leader in China in terms of the premium segment. They still have seventy percent share. But the silver lining for Apple is still not maybe not be in China this year, but they're still going in emerging markets. They are probably going to increasingly have more of their models move over to their you know, in house modem, which will help their profitability.

So there are still.

So there are still.

Some silver lining in again as they scale their production in India, that will really help them deal with the teriff challenges as well. And hopefully once we hear it more you know in WWBC in terms of the announcements.

Some silver lining in again as they scale their production in India, that will really help them deal with the teriff challenges as well. And hopefully once we hear it more you know in WWBC in terms of the announcements.

With before we hear about it WWDC right like, because Tim Cook did not speak about a lot of this stuff on the call. You make a good point though. The other news headline is that Apple is going to source starting right now, apparently millions more chips from the TSMC fab in Arizona. How does that impact the cost of production of a handset and how do you model for it being taken out of their hands that they have to raise prices or not.

With before we hear about it WWDC right like, because Tim Cook did not speak about a lot of this stuff on the call. You make a good point though. The other news headline is that Apple is going to source starting right now, apparently millions more chips from the TSMC fab in Arizona. How does that impact the cost of production of a handset and how do you model for it being taken out of their hands that they have to raise prices or not.

You know, it's just it's.

You know, it's just it's.

Just very you know, we don't have visibility in terms of exactly how many chips are going to come from where, but we do know that they are really trying. I mean, the thing is with Apple, right, they have been.

Just very you know, we don't have visibility in terms of exactly how many chips are going to come from where, but we do know that they are really trying. I mean, the thing is with Apple, right, they have been.

So they're really good.

So they're really good.

And what their biggest strength is there how they navigate through all of these the way they negotiate with their supply chain, and they have a lot of strength right in terms of where they want to move things around. They are able to even with prices, with logistics and tipicos. Background is an operations guy, right, and on top of his strength in terms of geopolitics, he has strength and you know history with navigating and negotiating with both administrations. So I do have faith that he will be able to take you know, whether through the storm. It will just take some time, whether it's through the supply chain or whether he does it through internal you know, changing of going through more in house or changing the supply chain and manufacturing, whether it's through India or through to the US, but it just takes some time, and we do expect this to be a challenging year for Apple well, but in the long term I do see that you know, they will be able to come through it.

And what their biggest strength is there how they navigate through all of these the way they negotiate with their supply chain, and they have a lot of strength right in terms of where they want to move things around. They are able to even with prices, with logistics and tipicos. Background is an operations guy, right, and on top of his strength in terms of geopolitics, he has strength and you know history with navigating and negotiating with both administrations. So I do have faith that he will be able to take you know, whether through the storm. It will just take some time, whether it's through the supply chain or whether he does it through internal you know, changing of going through more in house or changing the supply chain and manufacturing, whether it's through India or through to the US, but it just takes some time, and we do expect this to be a challenging year for Apple well, but in the long term I do see that you know, they will be able to come through it.

Really, popol, it is always so great to speak with you, senior director at IDC. We shift from Apple to Amazon now shares as we see reacting to its own report, we're down about three tenths of a percent. The company did want of a tougher business climate, of course, amid global trade tensions. Let's get more brad ericson Internet analysts for RBC Capital Markets. Before I go to the AWS side of it, come to the geopolitics of it all. How much are we able to see Amazon survive and weather this at the moment by having brought in inventory but ultimately be able to change up their supply chain too.

Really, popol, it is always so great to speak with you, senior director at IDC. We shift from Apple to Amazon now shares as we see reacting to its own report, we're down about three tenths of a percent. The company did want of a tougher business climate, of course, amid global trade tensions. Let's get more brad ericson Internet analysts for RBC Capital Markets. Before I go to the AWS side of it, come to the geopolitics of it all. How much are we able to see Amazon survive and weather this at the moment by having brought in inventory but ultimately be able to change up their supply chain too.

Yeah, so I think you know, they're definitely working the situation. They would acknowledge that it's very uncertain. We spoke with them last night and there was definitely that was the message on all of this.

Yeah, so I think you know, they're definitely working the situation. They would acknowledge that it's very uncertain. We spoke with them last night and there was definitely that was the message on all of this.

But I think the idea is is that you know, we.

But I think the idea is is that you know, we.

Think about it kind of the guns for the war picks and shovels type of dynamic.

Think about it kind of the guns for the war picks and shovels type of dynamic.

Here. Amazon has millions of sellers. There will absolutely be sellers that are.

Here. Amazon has millions of sellers. There will absolutely be sellers that are.

Impacted by this in terms of having supply chain exposure to China, but there are others that don't. And when you think about people you know, looking for deals trying to save money already, they're going to go to Amazon and they're still going to find sellers that are not exposed to those China supply chain headwins, and they're going to find decent prices and they're going to buy.

Impacted by this in terms of having supply chain exposure to China, but there are others that don't. And when you think about people you know, looking for deals trying to save money already, they're going to go to Amazon and they're still going to find sellers that are not exposed to those China supply chain headwins, and they're going to find decent prices and they're going to buy.

So I think under almost.

So I think under almost.

Any macro scenario, right, we're not saying we know the downside, but under any any scenario Amazon games.

Any macro scenario, right, we're not saying we know the downside, but under any any scenario Amazon games.

Share, I want to go to the fundamental basics of how Amazon's business works. Half of the audience watching GMOT technology, No, it is Amazon dot Com an e commerce business that's the vast volume of sales, but the vast majority of operating income is AWS cloud. So when Amazon tells us that be in the current period, operating income will be billions of dollars below what you guys on the street had forecast, is that singularly a tariff's issue on dot com? Or is it also reflecting softness in cloud spending.

Share, I want to go to the fundamental basics of how Amazon's business works. Half of the audience watching GMOT technology, No, it is Amazon dot Com an e commerce business that's the vast volume of sales, but the vast majority of operating income is AWS cloud. So when Amazon tells us that be in the current period, operating income will be billions of dollars below what you guys on the street had forecast, is that singularly a tariff's issue on dot com? Or is it also reflecting softness in cloud spending.

I don't think it's reflecting softness and cloud spending.

I don't think it's reflecting softness and cloud spending.

In fact, I expect that to kind of continue.

In fact, I expect that to kind of continue.

I think the issue is more just that well, one thing I would clarify is that, yes, the midpoint of the guidance was below the street, but typically Amazon hits or exceeds the high end of the guidance, and so I think really when you think about where the quarter likely ends up, it was probably closer to in line. I'm sure they're building in some risk around you, just the terror situation and the impact that that could have, But the ad business drives a huge portion of that that operating income as well, and that's still growing really well too.

I think the issue is more just that well, one thing I would clarify is that, yes, the midpoint of the guidance was below the street, but typically Amazon hits or exceeds the high end of the guidance, and so I think really when you think about where the quarter likely ends up, it was probably closer to in line. I'm sure they're building in some risk around you, just the terror situation and the impact that that could have, But the ad business drives a huge portion of that that operating income as well, and that's still growing really well too.

That grow eighteen percent in the quarter.

That grow eighteen percent in the quarter.

So I think there's less sort of discounted in and there less concern in there than you might think.

So I think there's less sort of discounted in and there less concern in there than you might think.

And they're still very focused on all the innovation, whether it be o ver aws, whether it be in space, whether it be on what they're doing in terms of getting your product too faster. All of that, though, takes costs, and I'm interested that meta signal. Look, we're sticking to, for example, our CAPEX and we're raising it because of infrastructure spends going to go up because of tarifs. Do you think that's going to affect the cost of doing business at AWS in any way?

And they're still very focused on all the innovation, whether it be o ver aws, whether it be in space, whether it be on what they're doing in terms of getting your product too faster. All of that, though, takes costs, and I'm interested that meta signal. Look, we're sticking to, for example, our CAPEX and we're raising it because of infrastructure spends going to go up because of tarifs. Do you think that's going to affect the cost of doing business at AWS in any way?

Brad?

Brad?

It could yeah.

It could yeah.

I mean I think the comment we made earlier in the week on Meta was that, you know, they called out equipment infrastructure, equipment and component costs are going up. Technically, what that means for the industry is that structurally, return on investment capital is lower today than it was ninety days ago.

I mean I think the comment we made earlier in the week on Meta was that, you know, they called out equipment infrastructure, equipment and component costs are going up. Technically, what that means for the industry is that structurally, return on investment capital is lower today than it was ninety days ago.

So sure, that's not great. I think in Amazon's case.

So sure, that's not great. I think in Amazon's case.

You know, Meta probably came out a little bit even more unscathed from tariffs based on what we know at this point. So I think Amazon's probably having a little bit more measured caution. Ie they didn't take the Capex guide up, but I think they sound every bit is bullish on the cloud business and their growth they're going forward.

You know, Meta probably came out a little bit even more unscathed from tariffs based on what we know at this point. So I think Amazon's probably having a little bit more measured caution. Ie they didn't take the Capex guide up, but I think they sound every bit is bullish on the cloud business and their growth they're going forward.

What did Amazon do well in the quarta?

What did Amazon do well in the quarta?

What did they do well? They grew ads eighteen percent.

What did they do well? They grew ads eighteen percent.

They did not miss on ads, which they had been in prior quorders, so that was probably the best one of the standouts.

They did not miss on ads, which they had been in prior quorders, so that was probably the best one of the standouts.

Can I don't pen that, Brad.

Can I don't pen that, Brad.

I'm really interested in the ads side because you said that now really clearly twice. How much of a headwind is that going forward if third party sellers become that little bit weaker, if we do see the knock on effects of tensions in trade.

I'm really interested in the ads side because you said that now really clearly twice. How much of a headwind is that going forward if third party sellers become that little bit weaker, if we do see the knock on effects of tensions in trade.

Yeah, for sure.

Yeah, for sure.

So I go back, so ads basically have a one to one relationship with volume, right units essentially, And so back to what I said earlier, with that seller density, you might a seller might who has a China supply chain exposure, might lose some volume, but there's going to be another seller that's going to step in there and probably still move that unit. If they do, they're still going to be spending those AD dollars. So we think that actually can be more resilient here.

So I go back, so ads basically have a one to one relationship with volume, right units essentially, And so back to what I said earlier, with that seller density, you might a seller might who has a China supply chain exposure, might lose some volume, but there's going to be another seller that's going to step in there and probably still move that unit. If they do, they're still going to be spending those AD dollars. So we think that actually can be more resilient here.

Project Kaiper has got off to a rocky start. I think it's fair to say, do you even model that into your model for Amazon? Any meaningful contribution for space based internet business that takes on starlink?

Project Kaiper has got off to a rocky start. I think it's fair to say, do you even model that into your model for Amazon? Any meaningful contribution for space based internet business that takes on starlink?

Yeah, it's hard, That's what I'll say. For Q two, you know, it's embedded in the guidance. They launched a rocket earlier in April, they're going to launch more in Q two, So clearly there is cost, and you know, I think we're thinking about maybe one hundred million on average per rocket that goes up. So that's kind of the magnitude we're talking about, and they've talked about kind of somewhere in the range of eighty rockets or maybe ten billion dollars of total outlay related to the Constellation project overall. So the good news is what they said last night was they are going to have commercial service up for that by the end of the year, so they're actually gonna be driving revenue. It's not just a cost headwind, which is nice as we think about twenty twenty six. But yeah, the math on it in our model very difficult at this point.

Yeah, it's hard, That's what I'll say. For Q two, you know, it's embedded in the guidance. They launched a rocket earlier in April, they're going to launch more in Q two, So clearly there is cost, and you know, I think we're thinking about maybe one hundred million on average per rocket that goes up. So that's kind of the magnitude we're talking about, and they've talked about kind of somewhere in the range of eighty rockets or maybe ten billion dollars of total outlay related to the Constellation project overall. So the good news is what they said last night was they are going to have commercial service up for that by the end of the year, so they're actually gonna be driving revenue. It's not just a cost headwind, which is nice as we think about twenty twenty six. But yeah, the math on it in our model very difficult at this point.

I'd say pad Ericson obviously Capital Markets, thank you very much. Now coming up, ADP's Nella Richardson joins us on the efforts to address the widening skill gap in labor markets. This has been bo technology.

I'd say pad Ericson obviously Capital Markets, thank you very much. Now coming up, ADP's Nella Richardson joins us on the efforts to address the widening skill gap in labor markets. This has been bo technology.

The US labor market is stronger than perhaps expected for April, shrugging off those trade tensions, one hundred and seventy seven thousand jobs added, but there is still uncertainty, and it's about tariff impact. It's also perhaps about the longer time effects of advances in technology here to address well the skills gap in particular is Neila Richardson.

The US labor market is stronger than perhaps expected for April, shrugging off those trade tensions, one hundred and seventy seven thousand jobs added, but there is still uncertainty, and it's about tariff impact. It's also perhaps about the longer time effects of advances in technology here to address well the skills gap in particular is Neila Richardson.

She's the chief economist and the SG officer.

She's the chief economist and the SG officer.

At ADP, and you've done some fascinating research and ontology. You call it about perhaps what is facing the current labor market and the skills gap that is missing when it comes to tech. Is that in any way being reflected in jobs numbers right now.

At ADP, and you've done some fascinating research and ontology. You call it about perhaps what is facing the current labor market and the skills gap that is missing when it comes to tech. Is that in any way being reflected in jobs numbers right now.

A little bit?

A little bit?

But if we raise up our view, if we change your aperture to the big picture, the long term picture, what you see is an aging US workforce that's being complemented by an aging Chinese in an Asian aging euree workforce, and then you see all these nascent new technologies that companies have yet to fully embrace. And so as this plays out, there's going to be a gap between the tech and the skills, and until that chasm is closed, you're going to see a hit to productivity. So our focus is really aligning all the new jobs and the in demand jobs with the in demand skills so that we can bring the workforce along to all this technological change and all the promise.

But if we raise up our view, if we change your aperture to the big picture, the long term picture, what you see is an aging US workforce that's being complemented by an aging Chinese in an Asian aging euree workforce, and then you see all these nascent new technologies that companies have yet to fully embrace. And so as this plays out, there's going to be a gap between the tech and the skills, and until that chasm is closed, you're going to see a hit to productivity. So our focus is really aligning all the new jobs and the in demand jobs with the in demand skills so that we can bring the workforce along to all this technological change and all the promise.

That it holds.

That it holds.

The calculus for the tech industry is that the job's numbers and aggregate show that there isn't this impact from uncertainty in tariff's overall in that market? But if there is a skills gap. You look at some of the headlines in tech, metalaid off about one hundred people in reality labs. But I know that those companies are doing that in small trims because there are places they desperately need people that aren't really available. They've got to free up the salary, the stock and the head count. How much do you exp that to continue in this market? Make little trims but overall higher.

The calculus for the tech industry is that the job's numbers and aggregate show that there isn't this impact from uncertainty in tariff's overall in that market? But if there is a skills gap. You look at some of the headlines in tech, metalaid off about one hundred people in reality labs. But I know that those companies are doing that in small trims because there are places they desperately need people that aren't really available. They've got to free up the salary, the stock and the head count. How much do you exp that to continue in this market? Make little trims but overall higher.

You know, companies and tech companies in particular, made big bets throughout this pandemic recovery, and sometimes they've had to pull back on those bets and reshuffle their headcount. If you look at the April numbers that information tech sector, which has a lot of people and companies that create and publish software, it was flat in April. It was negative the month before and flat again the month before that. So there's this disconnect between the people and the tech where all these people with tech is the future. And I think what you're seeing is a couple things. First, that talent is being subsumed elsewhere, and also that talent is evolving, So at ADP. What we're trying to do is show where the talent is, how it's moving, maybe from industries that you would expect, like the tech sector to manufacturing, to healthcare, to these other industries where tech is becoming even more important than it has been historically.

You know, companies and tech companies in particular, made big bets throughout this pandemic recovery, and sometimes they've had to pull back on those bets and reshuffle their headcount. If you look at the April numbers that information tech sector, which has a lot of people and companies that create and publish software, it was flat in April. It was negative the month before and flat again the month before that. So there's this disconnect between the people and the tech where all these people with tech is the future. And I think what you're seeing is a couple things. First, that talent is being subsumed elsewhere, and also that talent is evolving, So at ADP. What we're trying to do is show where the talent is, how it's moving, maybe from industries that you would expect, like the tech sector to manufacturing, to healthcare, to these other industries where tech is becoming even more important than it has been historically.

And how much are we starting to see headcount less necessary because of technological innovation AI. For example, this week, everyone's been talking about the Gio Lingo announcement. AI first means we're segno to contractors, We're not giving you headcount unless you can automate it and show that you can't get any more automation done.

And how much are we starting to see headcount less necessary because of technological innovation AI. For example, this week, everyone's been talking about the Gio Lingo announcement. AI first means we're segno to contractors, We're not giving you headcount unless you can automate it and show that you can't get any more automation done.

Is that starting to show through?

Is that starting to show through?

You know?

You know?

At the edges, I think there is some change in how companies are hiring knowing that they have this advanced technology. It's commonly said your job won't be replaced by tech, it will be replaced by someone.

At the edges, I think there is some change in how companies are hiring knowing that they have this advanced technology. It's commonly said your job won't be replaced by tech, it will be replaced by someone.

Who knows AI very well.

Who knows AI very well.

I want to unpack that a little bit to show you what that means. There are skills associated to job titles. So at ADP we've identified one hundred thousand skills associated with nine thousand job titles. It doesn't mean that the jobs are changing. It means that the tasks and the skills required for those jobs are changing. So when you look at these company announcements, it's also stating that the jobs as they have been in the past, have you volved And what does it mean for a worker, Well, it means that you may have the same job, but what you do your skills required has changed, and companies are trying to figure that out, whether it is reducing headcount and rehiring the skills they need or and what here's where I think is really the opportunity training the current workforce to have those skills.

I want to unpack that a little bit to show you what that means. There are skills associated to job titles. So at ADP we've identified one hundred thousand skills associated with nine thousand job titles. It doesn't mean that the jobs are changing. It means that the tasks and the skills required for those jobs are changing. So when you look at these company announcements, it's also stating that the jobs as they have been in the past, have you volved And what does it mean for a worker, Well, it means that you may have the same job, but what you do your skills required has changed, and companies are trying to figure that out, whether it is reducing headcount and rehiring the skills they need or and what here's where I think is really the opportunity training the current workforce to have those skills.

Neila richardson the ADP, thank you very much, shares of Take two Interactive under pressure after the company announced its highly anticipated Grand Theft Auto six game is being delayed again until May of twenty twenty six bloombax. Jason Schreyer is here a Jason. For some people, this is like the worst possible news in their personal gaming lives they could have happened for Take two. The stockdown six percent? What are the details, what accounts for the delay?

Neila richardson the ADP, thank you very much, shares of Take two Interactive under pressure after the company announced its highly anticipated Grand Theft Auto six game is being delayed again until May of twenty twenty six bloombax. Jason Schreyer is here a Jason. For some people, this is like the worst possible news in their personal gaming lives they could have happened for Take two. The stockdown six percent? What are the details, what accounts for the delay?

Ed is just going to be a sad Christmas for you not getting to play the new Grand.

Ed is just going to be a sad Christmas for you not getting to play the new Grand.

Theft Definitely and many others.

Theft Definitely and many others.

Yeah, it's I don't think there's any sort of like crazy secret or alter your motive behind this. I've been hearing for a little while now people at Rockstar did not believe Fall twenty twenty five it was a real release window. There's just too much work left to do, not enough time to do it, and the company has really been trying pretty hard to avoid the kind of brutal overtime that they had traditionally put people through on their games. They've really been shaping up over the last few years, as Bloomberg has been reporting, So this was inevitable. I feel like we talked about this a little bit earlier in the year. We predicted on our game on Bloomberg newsletter that this was going to happen. To me, it's always felt more like a when than an if.

Yeah, it's I don't think there's any sort of like crazy secret or alter your motive behind this. I've been hearing for a little while now people at Rockstar did not believe Fall twenty twenty five it was a real release window. There's just too much work left to do, not enough time to do it, and the company has really been trying pretty hard to avoid the kind of brutal overtime that they had traditionally put people through on their games. They've really been shaping up over the last few years, as Bloomberg has been reporting, So this was inevitable. I feel like we talked about this a little bit earlier in the year. We predicted on our game on Bloomberg newsletter that this was going to happen. To me, it's always felt more like a when than an if.

Yeah, I'm straus Zelnik coming out saying we fully support Rockstar games, and you've got analysts coming out Jason saying that this doesn't wipe away the profitability. Up to fifty percent profit is what I think webbush have it down as, but you just push it back.

Yeah, I'm straus Zelnik coming out saying we fully support Rockstar games, and you've got analysts coming out Jason saying that this doesn't wipe away the profitability. Up to fifty percent profit is what I think webbush have it down as, but you just push it back.

It is bonkers to me that their stock is taking a hit this morning. This game is still going to be the biggest thing on the planet. It is still going to make a kajillion.

It is bonkers to me that their stock is taking a hit this morning. This game is still going to be the biggest thing on the planet. It is still going to make a kajillion.

Dollars technical question.

Dollars technical question.

The last game, Grand Theft out of Five, has sold two hundred and ten million copies, which makes it the second best selling game of all time, second to Minecraft, which is on phones. So that's apples and oranges. To put that in perspective, that Grand Theft out of Five alone has sold more than the entire Assassin's Creed series, an entire public trade and publisher Ubisoft It's flagship series has under sold GTA five alone. This is going to be the biggest entertainment launch ever. And the fact that investors are now spooked because it's coming a few months later, maybe moved fiscal years, that is bonkers to me.

The last game, Grand Theft out of Five, has sold two hundred and ten million copies, which makes it the second best selling game of all time, second to Minecraft, which is on phones. So that's apples and oranges. To put that in perspective, that Grand Theft out of Five alone has sold more than the entire Assassin's Creed series, an entire public trade and publisher Ubisoft It's flagship series has under sold GTA five alone. This is going to be the biggest entertainment launch ever. And the fact that investors are now spooked because it's coming a few months later, maybe moved fiscal years, that is bonkers to me.

I think the bonker's element though, is trip away. It's just once again anxiety, isn't it. The people's eyeballs go elsewhere? Where does it go?

I think the bonker's element though, is trip away. It's just once again anxiety, isn't it. The people's eyeballs go elsewhere? Where does it go?

Jason?

Jason?

If you're not you're still sticking with Grand Theft Auto five or are you playing other games you're getting more excited about the switch to what happens?

If you're not you're still sticking with Grand Theft Auto five or are you playing other games you're getting more excited about the switch to what happens?

Yeah, I mean this game is such an anomaly. I think a lot of games have to worry about that. A lot of multiplayer games, especially that are coming out, have to worry. Oh no, Bungee's Marathon is coming later this year. Is that going to compete with our new online game that is coming. It's a very competitive landscape. GTA is a class.

Yeah, I mean this game is such an anomaly. I think a lot of games have to worry about that. A lot of multiplayer games, especially that are coming out, have to worry. Oh no, Bungee's Marathon is coming later this year. Is that going to compete with our new online game that is coming. It's a very competitive landscape. GTA is a class.

Of its own.

Of its own.

This is a game that everybody is going to play no matter what. So again, it seems a little silly to me that investors are worried about a delay when the game is still going.

This is a game that everybody is going to play no matter what. So again, it seems a little silly to me that investors are worried about a delay when the game is still going.

We're showing that data right now, right. You were just talking about two hundred and ten on GTA five. Just real quick, just explain the basics of what the game is. You have thirty seconds because the audience might not know.

We're showing that data right now, right. You were just talking about two hundred and ten on GTA five. Just real quick, just explain the basics of what the game is. You have thirty seconds because the audience might not know.

Yeah, GTA.

Yeah, GTA.

So GTA six is going to be two components. One is going to be the single player part of it, which is a big open world game where you drive around a fictional version of Miami and you do crimes and you follow a story and it's all very beautiful and cinema and I really love that. The second part is an online component where you do similar sort of things heists and crimes and online driving, except with your friends.

So GTA six is going to be two components. One is going to be the single player part of it, which is a big open world game where you drive around a fictional version of Miami and you do crimes and you follow a story and it's all very beautiful and cinema and I really love that. The second part is an online component where you do similar sort of things heists and crimes and online driving, except with your friends.

I just I still can't get over the first that screen cris data, Tetris data like five hundred million.

I just I still can't get over the first that screen cris data, Tetris data like five hundred million.

People pick it up another time based worry.

People pick it up another time based worry.

One of our producers a clean lover of Tetris, Jason Tryer, We adore having you. Thank you, Welcome back to Blue Med Technology.

One of our producers a clean lover of Tetris, Jason Tryer, We adore having you. Thank you, Welcome back to Blue Med Technology.

I'm Caroenine Hide in New.

I'm Caroenine Hide in New.

York and I med Ludlow also in the Big Apple. What is the technology sect you're doing?

York and I med Ludlow also in the Big Apple. What is the technology sect you're doing?

It's higher, and it's higher on macro perspective.

It's higher, and it's higher on macro perspective.

Actually, if you're look at NASNAK more broadly, look if five days of gains, we're up more than three point six percent. That's the second week of gains, and we're at one point three percent. Because the jobs market thus far not too impacted by tariffs, and indeed maybe there's some cooling intensions between US and China. But we also look at some individual movers. I want to get under the hood and show you what's happening. Airbnb off by a quarter of percent. Look, they post almost eight percent sales growth for the court just gone, but they push forward that that's going to moderate. I mean this economic anzoniety. We look a PDD up three point four percent. Look, TIMU is going to go local. They're not going to be giving you everything from China. They're going to source it in the US and more locally. And then there's Nvidia two point seven percent higher. Interesting reporting coming from the information. Could they be inventing yet a new type of chip A's tailor made to the Chinese H twenty can't go there, but can they service them with something else?

Actually, if you're look at NASNAK more broadly, look if five days of gains, we're up more than three point six percent. That's the second week of gains, and we're at one point three percent. Because the jobs market thus far not too impacted by tariffs, and indeed maybe there's some cooling intensions between US and China. But we also look at some individual movers. I want to get under the hood and show you what's happening. Airbnb off by a quarter of percent. Look, they post almost eight percent sales growth for the court just gone, but they push forward that that's going to moderate. I mean this economic anzoniety. We look a PDD up three point four percent. Look, TIMU is going to go local. They're not going to be giving you everything from China. They're going to source it in the US and more locally. And then there's Nvidia two point seven percent higher. Interesting reporting coming from the information. Could they be inventing yet a new type of chip A's tailor made to the Chinese H twenty can't go there, but can they service them with something else?

Ed?

Ed?

It stock is higher?

It stock is higher?

It is. As President Trump marked his first one hundred days in office this week, the Department of Energy is also celebrating one hundred days of American energy what it's calling victories, including in manufacturing and innovation. Joining us now is US Energy Secretary Chris Wright, Secretary right, thank you for your time in joining us here on Bloomberg Technology. There is one question that that Americans that watch this show have for you, which is, how have you changed policy in that period of time for energy in a way that supports you manufacturers.

It is. As President Trump marked his first one hundred days in office this week, the Department of Energy is also celebrating one hundred days of American energy what it's calling victories, including in manufacturing and innovation. Joining us now is US Energy Secretary Chris Wright, Secretary right, thank you for your time in joining us here on Bloomberg Technology. There is one question that that Americans that watch this show have for you, which is, how have you changed policy in that period of time for energy in a way that supports you manufacturers.

Well, here, I am at a plant in Griffin, Georgia, about forty miles southeast of Atlanta that makes low cost, tankless, non condensing.

Well, here, I am at a plant in Griffin, Georgia, about forty miles southeast of Atlanta that makes low cost, tankless, non condensing.

Hot water heaters.

Hot water heaters.

A little too technical there, These are low cost heaters. Over a million Americans today take showers and wash their hands from water heated from a device made in this plant just in the last three years, and of course millions more interested in this technology because it's very low cost.

A little too technical there, These are low cost heaters. Over a million Americans today take showers and wash their hands from water heated from a device made in this plant just in the last three years, and of course millions more interested in this technology because it's very low cost.

And this was going to be illegal.

And this was going to be illegal.

On December twenty sixth, the Biden administration passed a rule through the Department of Energy, my predecessor, that would have made the manufacture of these devices illegal. Hundreds of people here in Georgia would have lost their jobs, and millions of Americans wouldn't have had a low cost choice to put into their house, their apartment, their you know, wherever it is. They want hot water, their restaurant, their business. And so we're through to see this factory, hum and along and excited workers that they have the future and their products have the future.

On December twenty sixth, the Biden administration passed a rule through the Department of Energy, my predecessor, that would have made the manufacture of these devices illegal. Hundreds of people here in Georgia would have lost their jobs, and millions of Americans wouldn't have had a low cost choice to put into their house, their apartment, their you know, wherever it is. They want hot water, their restaurant, their business. And so we're through to see this factory, hum and along and excited workers that they have the future and their products have the future.

Secretary, right fifty miles away from where you're standing, Rivian is building an electric vehicle plant in Georgia. Rivian had secured a six point six billion dollar loan from the Department of Energy agreed under the prior administration. What is your assessment of that loan, will it proceed and are you reviewing the issuance of those funds?

Secretary, right fifty miles away from where you're standing, Rivian is building an electric vehicle plant in Georgia. Rivian had secured a six point six billion dollar loan from the Department of Energy agreed under the prior administration. What is your assessment of that loan, will it proceed and are you reviewing the issuance of those funds?

So we will review the issuance of all the funds, loans and grants from the Department of the Energy. To give you one reason for the serious concern. We have about eighty percent of the loan money and the grant money put out by the Biden percent Biden administration, eighty percent went out after President Trump was elected and before his inauguration day.

So we will review the issuance of all the funds, loans and grants from the Department of the Energy. To give you one reason for the serious concern. We have about eighty percent of the loan money and the grant money put out by the Biden percent Biden administration, eighty percent went out after President Trump was elected and before his inauguration day.

If they had great, rock.

If they had great, rock.

Solid, make American lives better opportunities, wouldn't they have done that in the previous two and a half years. But instead, so much of the money was rushed out the door after election day and before inauguration. So we've got a lot of reasons to be worried and suspicious about that. We're stewards of the American taxpayer's money. And the goal the Department of Energy is to improve our energy system, to make energy more affordable, reliable, and secure. Everything that serves that agenda we will carry through. So we want to we want to carry out the president's agenda, follow the rule of law, and so some of these loans will go forward, some of them it's too late to change courses. A lot of them won't go forward. But that's a very careful review process, yes, that we've just put in place and just got the team to execute on.

Solid, make American lives better opportunities, wouldn't they have done that in the previous two and a half years. But instead, so much of the money was rushed out the door after election day and before inauguration. So we've got a lot of reasons to be worried and suspicious about that. We're stewards of the American taxpayer's money. And the goal the Department of Energy is to improve our energy system, to make energy more affordable, reliable, and secure. Everything that serves that agenda we will carry through. So we want to we want to carry out the president's agenda, follow the rule of law, and so some of these loans will go forward, some of them it's too late to change courses. A lot of them won't go forward. But that's a very careful review process, yes, that we've just put in place and just got the team to execute on.

Secretary Right it's not just the company's manufacturing. If you think about the infrastructure, particularly from the utilities point of view, there is a lot of concern about storage of capability. Tesla is the leader in energy storage, right but the frank reality is that for the energy storage products it relies on prismatic LFP cells that are one hundred percent manufactured in China by catl. If there is a need to build out storage products at the commercial scale, are you evaluating any exemptions in the context of tariff or any work with Tesla so that they can get moving on building out energy storage infrastructure in this country.

Secretary Right it's not just the company's manufacturing. If you think about the infrastructure, particularly from the utilities point of view, there is a lot of concern about storage of capability. Tesla is the leader in energy storage, right but the frank reality is that for the energy storage products it relies on prismatic LFP cells that are one hundred percent manufactured in China by catl. If there is a need to build out storage products at the commercial scale, are you evaluating any exemptions in the context of tariff or any work with Tesla so that they can get moving on building out energy storage infrastructure in this country.

Well, look at well it's talk on specific things right here, but we are looking very careful at everything we can do to resure the manufacturing of critical systems like the ones you've talked about here in the United States. We've just become way too dependent on China for things that are in our defense systems, that are in our electric grids, that are in our automobiles, that are in our space systems.

Well, look at well it's talk on specific things right here, but we are looking very careful at everything we can do to resure the manufacturing of critical systems like the ones you've talked about here in the United States. We've just become way too dependent on China for things that are in our defense systems, that are in our electric grids, that are in our automobiles, that are in our space systems.

We need to bring.

We need to bring.

That kind of manufacturing, those technologies, and those materials back into the United States. It is a high priority of the Trump administration.

That kind of manufacturing, those technologies, and those materials back into the United States. It is a high priority of the Trump administration.

Secretary, right You spend a lot of time talking to executives, as does the President. I just want you to rehear what the Nvidia CEO said on the hill just this week.

Secretary, right You spend a lot of time talking to executives, as does the President. I just want you to rehear what the Nvidia CEO said on the hill just this week.

Take a listen.

Take a listen.

In order for this industry to thrive, we need to build these systems, of course, but we also need a progressive growth and industry oriented energy policy, which this president has really put his way behind. I really appreciate that without energy we can't possibly have new growth industries.

In order for this industry to thrive, we need to build these systems, of course, but we also need a progressive growth and industry oriented energy policy, which this president has really put his way behind. I really appreciate that without energy we can't possibly have new growth industries.

An industry focused energy policy for AI Secretary, right, what does that industry policy look like?

An industry focused energy policy for AI Secretary, right, what does that industry policy look like?

That means getting the barriers out of the way of energy production. The Bidy administration spent four years in sort of an all of government approach to impede the production of hydrocarbons in the United States for all energy sources. But hydrocarbons are over eighty percent of US energy when I was born and they are today.

That means getting the barriers out of the way of energy production. The Bidy administration spent four years in sort of an all of government approach to impede the production of hydrocarbons in the United States for all energy sources. But hydrocarbons are over eighty percent of US energy when I was born and they are today.

So if you stand in the way of.

So if you stand in the way of.

Our main energy system, guess what you get higher prices. We grew our electricity production only two percent twenty percent price rise.

Our main energy system, guess what you get higher prices. We grew our electricity production only two percent twenty percent price rise.

So to achieve in Videos.

So to achieve in Videos.

And America's dream to win the AI race, we've got to produce a lot more electricity, a lot more energy of all sorts in the United States, and all the government needs to do is get out of the way a little bit of common sense. There's American businesses, American capital, and American technologies ready to roar, and President Trump's goal is to unleash that American energy, that American capital and let American energy production grow sexually.

And America's dream to win the AI race, we've got to produce a lot more electricity, a lot more energy of all sorts in the United States, and all the government needs to do is get out of the way a little bit of common sense. There's American businesses, American capital, and American technologies ready to roar, and President Trump's goal is to unleash that American energy, that American capital and let American energy production grow sexually.

Right though, is there a potential that you're accidentally getting in the way because of geopolitics and trade issues? Because the energy lack of in many ways is an infrastructure and supply chain issue. You don't have the turbines to be able to bring the energy at the infrastructure rate that the CEOs want to see. There's not enough equipment. Is there enough time to pivot to make that in the US?

Right though, is there a potential that you're accidentally getting in the way because of geopolitics and trade issues? Because the energy lack of in many ways is an infrastructure and supply chain issue. You don't have the turbines to be able to bring the energy at the infrastructure rate that the CEOs want to see. There's not enough equipment. Is there enough time to pivot to make that in the US?

Oh.

Oh.

I've spoken to the turbine manufacturers and they are in huge demand right now. But ge Vernova made twenty seven of them last year. They'll make eighty of them next year. So the Americans are ingenious and with a little bit of regulatory common sense, they can ramp up their capacity rapidly. So no, I'm quite excited about how much new energy production capacity we'll see in the United States under construction today. And a lot more will be under construction by the end of this year. I think we will ramp it up in time. But you're right, it's going to be a race. It's going to be a race, but we must lead in AI and that means we must rapidly grow our energy production. But we're up for the job.

I've spoken to the turbine manufacturers and they are in huge demand right now. But ge Vernova made twenty seven of them last year. They'll make eighty of them next year. So the Americans are ingenious and with a little bit of regulatory common sense, they can ramp up their capacity rapidly. So no, I'm quite excited about how much new energy production capacity we'll see in the United States under construction today. And a lot more will be under construction by the end of this year. I think we will ramp it up in time. But you're right, it's going to be a race. It's going to be a race, but we must lead in AI and that means we must rapidly grow our energy production. But we're up for the job.

Secretary, right, how reliant will the AI boom in this country be on fossil fuels? And while we have you, what is the plan for the SPR Please?

Secretary, right, how reliant will the AI boom in this country be on fossil fuels? And while we have you, what is the plan for the SPR Please?

Well, foss the natural gas is by far the big source of electricity in the United States, followed by nuclear and coal. So that's what's going to power THEI race. It's slow to build coal plants and nuclear plants are very slow.

Well, foss the natural gas is by far the big source of electricity in the United States, followed by nuclear and coal. So that's what's going to power THEI race. It's slow to build coal plants and nuclear plants are very slow.

We want to change that.

We want to change that.

But in the short term, the main source of additional electricity that will power AI arms race is going to be expanded natural gas electricity production. That'll be the workhourse of winning the AI race. But a lot of solars getting built, transmission, energy storage, all of the above that works, that'll add to it. Your last question, sorry, repeated again.

But in the short term, the main source of additional electricity that will power AI arms race is going to be expanded natural gas electricity production. That'll be the workhourse of winning the AI race. But a lot of solars getting built, transmission, energy storage, all of the above that works, that'll add to it. Your last question, sorry, repeated again.

The status of the SPI Please.

The status of the SPI Please.

Hey, the SPR was half drained for the twenty twenty two mid term elections. So we are filling it slowly right now, but we're going to try to get money through Congress to fill it more rapidly. But unfortunately, you can only fill it at a much slower pace than you can drain it, so it will take us years to fill it back. But we will entirely fill it because it's a strategic reserve. You got to have that because you never know what's coming.

Hey, the SPR was half drained for the twenty twenty two mid term elections. So we are filling it slowly right now, but we're going to try to get money through Congress to fill it more rapidly. But unfortunately, you can only fill it at a much slower pace than you can drain it, so it will take us years to fill it back. But we will entirely fill it because it's a strategic reserve. You got to have that because you never know what's coming.

We appreciate your time outside, of course, for in I America Corporation US Energy Secretary Chris Wright, we love a high vis jacket on this show.

We appreciate your time outside, of course, for in I America Corporation US Energy Secretary Chris Wright, we love a high vis jacket on this show.

Meanwhile, let's get to the breaking news for you.

Meanwhile, let's get to the breaking news for you.

Potential IPO coming as soon as next week. Etro is said to be weighing actually going forward with its initial public offering, having delayed it back in last month.

Potential IPO coming as soon as next week. Etro is said to be weighing actually going forward with its initial public offering, having delayed it back in last month.

They could be eyeing as soon as next week.

They could be eyeing as soon as next week.

No decision is yet finalized, but it's certainly been considered.

No decision is yet finalized, but it's certainly been considered.

Meanwhile, coming up.

Meanwhile, coming up.

Roadblocks sees much better than expected jump in active users will be speaking with the CEO, say Bazooki, that's next, stick with us.

Roadblocks sees much better than expected jump in active users will be speaking with the CEO, say Bazooki, that's next, stick with us.

This is Blue Meg Technology.

This is Blue Meg Technology.

Once again video game platform roadblocks. The shares on the up and up. Of course, the company reported large and expected jumping users for the first quarter with its daily active players jumping twenty ninety seven point eight billion now and that was for the first three months ending in March. Dave Pazuki Redlox CEO joins us and Dave, are you economic anxiety proof?

Once again video game platform roadblocks. The shares on the up and up. Of course, the company reported large and expected jumping users for the first quarter with its daily active players jumping twenty ninety seven point eight billion now and that was for the first three months ending in March. Dave Pazuki Redlox CEO joins us and Dave, are you economic anxiety proof?

You recession proof.

You recession proof.

Ed?

Ed?

Carolyn? Thank you for having me on the program. I want to highlight significant performance in Q one. We just shared yesterday on our Ernie's Call on our really mission to get ten percent of the global gaming software market running on the platform. Roadblocks is virtual, roadblocks is digital. We do not have any supply chain issues. There is no shortage of roadblocks, and we are contributing to the US trade import export ratio. We're bringing cash into.

Carolyn? Thank you for having me on the program. I want to highlight significant performance in Q one. We just shared yesterday on our Ernie's Call on our really mission to get ten percent of the global gaming software market running on the platform. Roadblocks is virtual, roadblocks is digital. We do not have any supply chain issues. There is no shortage of roadblocks, and we are contributing to the US trade import export ratio. We're bringing cash into.

The US and you're paying some of those content creators, in particular developers. Dave, I'm interested in that ten percent figure, Like what sort of timeframe are we talking here? Because what you're at about three percent now?

The US and you're paying some of those content creators, in particular developers. Dave, I'm interested in that ten percent figure, Like what sort of timeframe are we talking here? Because what you're at about three percent now?

Am I right?

Am I right?

We're at about two and a half to three percent. We have shared consistently that we believe can grow at greater than twenty percent year on year. We highlighted in Q one growth rates much higher than that, including revenue growth rates of twenty nine percent year on year, daily active user growth rates of twenty six percent year on year, and a couple really interesting highlights. Over thirteen users on the platform, DAUS grew by thirty six percent year on year and India huge market grew by seventy seven percent year on year. So we really think it's attainable.

We're at about two and a half to three percent. We have shared consistently that we believe can grow at greater than twenty percent year on year. We highlighted in Q one growth rates much higher than that, including revenue growth rates of twenty nine percent year on year, daily active user growth rates of twenty six percent year on year, and a couple really interesting highlights. Over thirteen users on the platform, DAUS grew by thirty six percent year on year and India huge market grew by seventy seven percent year on year. So we really think it's attainable.

Dave, I'm a passionate gamer in the over thirty category, and I'd say that the biggest headlines right now are the delay of GTA six high fidelity game and the delay of switch to on the console side. Is that where you think you're going to compete when you aim ten percent market share? How did those two headlines impact roadblocks and the platform.

Dave, I'm a passionate gamer in the over thirty category, and I'd say that the biggest headlines right now are the delay of GTA six high fidelity game and the delay of switch to on the console side. Is that where you think you're going to compete when you aim ten percent market share? How did those two headlines impact roadblocks and the platform.

We have shared a roadmap including highlighting genre expansion into RPG, sports and racing battle games on the platform. We are seeing more of this on the platform. For example, we recently NASCAR has teamed up with Driving Empire, Paramount teamed up with SpongeBob simulator, PGA Tour has teamed up, so we're seeing more and more of this. We shared that these three genres which will contribute to us getting to ten percent of the gaming space, We believe grew over sixty percent year on year on the platform.

We have shared a roadmap including highlighting genre expansion into RPG, sports and racing battle games on the platform. We are seeing more of this on the platform. For example, we recently NASCAR has teamed up with Driving Empire, Paramount teamed up with SpongeBob simulator, PGA Tour has teamed up, so we're seeing more and more of this. We shared that these three genres which will contribute to us getting to ten percent of the gaming space, We believe grew over sixty percent year on year on the platform.

Growing revenue. What role is advertising going to play.

Growing revenue. What role is advertising going to play.

We think we already have some creators on our platform who are making more money on advertising than they are with virtual currency. We believe it's a natural complement. What it's not big enough yet for us to break out the numbers. We just released a partnership with Google that will provide more video advertising for some of our developers. So it's part of building an economic ecosystem, you know. We also shared that over one hundred creators on the platform made over a million dollars in the last twelve months, So there's a huge variety of creators starting to make good businesses.

We think we already have some creators on our platform who are making more money on advertising than they are with virtual currency. We believe it's a natural complement. What it's not big enough yet for us to break out the numbers. We just released a partnership with Google that will provide more video advertising for some of our developers. So it's part of building an economic ecosystem, you know. We also shared that over one hundred creators on the platform made over a million dollars in the last twelve months, So there's a huge variety of creators starting to make good businesses.

And look Wedbush for example, the analyst, they're saying that payment, when it improves the content, it draws more people there, Dave. But you'll also say, look, when you actually tell us exactly you break out the numbers advertising, that's the next catalyst for roadblock shares. Any timeframe on when you will be able to break out the advertising numbers.

And look Wedbush for example, the analyst, they're saying that payment, when it improves the content, it draws more people there, Dave. But you'll also say, look, when you actually tell us exactly you break out the numbers advertising, that's the next catalyst for roadblock shares. Any timeframe on when you will be able to break out the advertising numbers.

We want to break out those numbers sooner as soon as we can. They are growing, Stay tuned. We're looking forward to that. That said, we're growing at enormous rates with the core business of virtual currency, both on engagement and on users, really significant outperformance in Q one.

We want to break out those numbers sooner as soon as we can. They are growing, Stay tuned. We're looking forward to that. That said, we're growing at enormous rates with the core business of virtual currency, both on engagement and on users, really significant outperformance in Q one.

I'm going to go to the delicate side because last time you joined us, Dave, it was all about parental controls. It's all about the focus on safety. Now since we last spoke, there's been a couple more legal cases come your way. Look, these lawsuits aimed at you and at Discord, and once again is about alleged grooming, sexual exploitation using the platforms. How are you dealing and responding to those particular lawsuits.

I'm going to go to the delicate side because last time you joined us, Dave, it was all about parental controls. It's all about the focus on safety. Now since we last spoke, there's been a couple more legal cases come your way. Look, these lawsuits aimed at you and at Discord, and once again is about alleged grooming, sexual exploitation using the platforms. How are you dealing and responding to those particular lawsuits.

How you feeling, Dave? As well as I know you have your.

How you feeling, Dave? As well as I know you have your.

Own family using it and you think seriously about this stuff, I would.

Own family using it and you think seriously about this stuff, I would.

Say both optimistic and as well a humility for the responsibility we have. You know, any single incident on our platform is one too many, and you know there's almost one hundred million daily users on the platform every day. We take this as an enormous responsibility. We are taking leadership here in that all communication on our platform is filtered and goes through AI filters, which are getting enormously better, including voice. There's no image sharing on our platform, so there's less risk of some of the things that happen in that area, and more and more we're focusing not just on under thirteen, but on thirteen through seventeen year olds. That's also a delicate age. We're starting to lean into age verification around this. We work very heavily with local, state, and federal law enforcement. Roadblocks is a dangerous place for bad actors, so we have a big responsibility here.

Say both optimistic and as well a humility for the responsibility we have. You know, any single incident on our platform is one too many, and you know there's almost one hundred million daily users on the platform every day. We take this as an enormous responsibility. We are taking leadership here in that all communication on our platform is filtered and goes through AI filters, which are getting enormously better, including voice. There's no image sharing on our platform, so there's less risk of some of the things that happen in that area, and more and more we're focusing not just on under thirteen, but on thirteen through seventeen year olds. That's also a delicate age. We're starting to lean into age verification around this. We work very heavily with local, state, and federal law enforcement. Roadblocks is a dangerous place for bad actors, so we have a big responsibility here.

Dave, you talked about M and A actually in the Roadblocks ecosystem during the call. Give me some solid numbers on what that looks like and some MNA for the company as well. Going forward.

Dave, you talked about M and A actually in the Roadblocks ecosystem during the call. Give me some solid numbers on what that looks like and some MNA for the company as well. Going forward.

We have shared that there are over there's now three creators on a run rate of over fifty million a year. You can put some multiples on top of that and estimate what their businesses might be worth. At our Developer conference last year, we shared a prediction there'll be a billion dollar valuation studio on the platform. We think that's very, very possible. Internally, we haven't announced any M and A, but we are generating a fair amount of cash. You know, we have well north of three billion dollars of cash, but no Roadblocks M and A plans right now.