from the heart of where technology and finance combined this is bloomberg technology with caroline hyde and ed ludlow.

caroline: i am caroline hyde. ed: i'm ed ludlow in san francisco. caroline: full earnings coverage or had. we have cisco it's outlook conservative we will hear from the cfo. ed: walmarts results posted big jump in its online business. caroline: we will be sitting down with start up perplexity to discuss complexity and the search place. nasdaq out of new record high. global stocks still raise higher in the economic data gives us confidence but will the agency be able to cut? 10 year flat. this is a risk on day.

we have seen, down on the day at $65,000 level. it's not all risk on n. end. ed: walmart is up 6%. this story is a search on growth in its online business. we will go to j wolf to talk about that. cisco is now down 2% in its outlook was seen as strong. we are going to hear from the cfo to break down the networking gear. we come to china. jd.com we are learning who the

winners and losers are in the e-commerce space. ali baba is up, why? jd.com number one and ali baba number two. . caroline: investor sentiment more broadly. we will tackle these record highs with chief global strategists joining us. willie carreon to the tech outperformance? >> great to be on with you.

more fundamentally we can see that from the implemented data, it is sewing. this is still a fundamentally strong economy and it should be fairly solid through the year and should translate to a broadening of the rally. ed: i have been looking at the index levels you look at the nasdaq 100 and s&p i can't believe we showed the average on the top of the program. is there any commonality in the direction of the market and strip out the magnificent seven. is there something in common for this market forces dominated by our look at those single technology names? seema: they are still dominating the market. what you have seen from the most

recent earnings season is this performance is spreading out to other parts of the economy. if that can be maintained and if you start to have more customers at the latter part of the year. they need those rate cuts. this is a broad, good story but we need to see more evidence in order to secure the perspective. for now, evidence suggests this is not just a year for the mag seven. caroline: what about valuations , chip stocks, the reigning formula of nvidia and alphabet and apple getting a lift. are they out of whack? seema: i was traveling across the u.s. with investors everywhere. that's a question that still

keeps coming up. do we think this is overvalued and time for correction? we would push back on that yes is frothy but comparisons to the dot-com bubble? absolutely not. these earnings are believable but there is something fundamental in this valuations. with this kind of market where there is so much good news there is always a risk of a call back. we look at the story as a long-term play and it's one of our favorite areas of the market. ed: the good news priced in. what we have been talking about recently is the relationship between u.s. and china constructive or otherwise. is that a headwind you're factoring in when you look at the technology sector? seema: is something we need to

consider when you're going into an election year. it's very much of a single stock named bases because some will be exposed and others not so much. from the most recent data, it does seem like it's cyclical. something to lift expectations, if that's carried through those bigger multinational tech companies suggest they are less at risk then we would have considered. it's not yet at that point where it's changing our perspective. caroline: i like that we go global. japanese stocks are on a two-year and european stocks are

setting records as well where do you like other geographies? seema: in the past couple of weeks what we have been challenged with although people believe in the u.s. exceptionalism they have been converted by the rate cut continuing any think about the growth story you see downside surprises and of course, valuations. this is a good time to think outside of the u.s.. europe the perennial disappointment, we know what the ecb will do and confidence zero because in june and thereafter. we are starting to see cyclical economic upside surprises. and valuations are more attractive. even in china, given where sentiment was, you couldn't get worse than that. the economic data seeing signs

of brightness, that is looking like a more attractive part of the market. ed: you're a on bloomberg television and bloomberg technology. i wanted to ask you how you are using ai at work, at home. what have you been up to you in the world of ai? seema: any company has to be embracing ai and trying to figure out where they can use it from a work perspective trying to adopt ai into our models and analyze companies from a single stock perspective. that will be the easiest way to do a full analysis and get a full, complete level of information. i have small children and ai is something they talk about at school as well. it's not just dominated by finance news. ed: principal asset management

seema shah. coming up on the show we will hear from the cisco ceo scott herron as is outlook is seen as conservative. we will be right back. this is bloomberg technology. ♪

caroline: we are going to talk cisco is been quite the volatile trade. we are now off by 1.7%. despite the forecast showing the return of customer spending.

bloomberg got the chance to discuss the results with scott herron. scott: this was our fiscal fourth-quarter. i would not guide 25 until we got to the fourth quarter. we acquired splunk and analysts are trying to adjust to what does the combined company look like. i wanted to get ahead of that without doing a fulsome guide get enough information so they could narrow down their expectation. it it conservative? it's a first few. the encouraging thing for us, we work through supply chain disruption that cause us to build a big backlog. as we got the components and we were able to clear that backlog, revenue spiked and compare those compare points. the year over year is difficult

to unpack. we will do more of that later. we are trying to give them enough insight so the models will converge on what we guess the right side of the numbers. katie: making the point is very early. let's talk a little more about inventory you make the point that it feels like you've turned a corner with supply chain disruptions and what is that say about corporate spending. there is a bit of an uptick. where is that coming from and what kind of customers are we seeing demand from? scott: we have splunk added in for half of a quarter. orders were flat overall which is an improvement. customers have been trying to implement a huge amount of product we shipped out to them

and we see that ending. we see them getting through implementing the product i the end of this fiscal quarter and as that happens we are starting to see demand return. within that overall flat, growth and security, growth and data center networking orders and growth and campus switching. that shocked a lot of people that were seeing growth there with the sense that there's more office space than ever. caroline: tailwinds there. we have to talk about ai. a detail that caught a lot of people's eyes is you have a billion dollars on ai infrastructure orders and my question there, is out for a particular line of business? where will that spending be taking place within cisco? scott: we put that out there

and it's in the backend if you think about how these models get trained and used as in the backend networking and optics in the backend. that big large cloud and tier two infrastructure buildout. ed: cisco cfo scott herron giving a classic class on being a cfo for a technology company. let's get some clarity on cisco and its earnings from ian king. there was a lot of cfo speak in that. unpick it for us. the best way to pick it is what happened with this chair prize. we got an initial spike. trading today was down moderately but what really happened and scott alluded to it is the expectation for orders

was that it would be down as much as 10% or even more in the quarter they reported. it came in as kind of ok, may be up slightly. it was not as bad as we feared. then when we go through the numbers and listen to the call which is seeing a reaction this morning. bearing in mind that just did this massive acquisition. caroline: we have to take splunk here. they had this bedding fanfare over and nvidia dl has not brought in revenue streams? ian: that is still early days. this billion dollar ai related

orders cisco once to go to the party. there are a lot of questions on the call yesterday what did you mean by a billion dollars? how sure are you that these are real orders? there was a lot of two and fro about whether this is real in the bottom line is, investors aren't quite ready cisco went to the party. ed: you broke astarte before a story about qualcomm. ian: they are a server chip company and teaming up with qualcomm to bring in this accelerator to bring cheaper

alternatives to what nvidia is selling for tens of thousands of dollars. caroline: we sat with renee james at various times throughout that event and she is a breath of fresh air to the area of computing but it's like a trifecta is going on. they can't do it alone they have to work through qualcomm but energy efficiency? ian: as you point out she is making a point which many agree we can't carry on like this. the cost of ai is just too great right now. we need technology answers to that problem and more efficient chips and cheaper chips and she is trying to offer her company as a solution to that problem. caroline: managing to come out

to the market with a combination offering. it's brilliant that you got to break it for us. coming up we will talk about walmart's earnings results and finish on the e-commerce side. 4 billion deliveries in one day and same day over the last year. we are down by 12.8%. it is a video game publisher warning it will be lower than the estimate. this is bloomberg technology. ♪

♪♪ sandals jamaica sale is now on! with rates from $199 per person per night. visit sandals.com or call 1-800-sandals caroline: time now for talking tech. microsoft is said to have vast

hundreds of visits china staff to relocate. the tech giant has asked us employees to another country. amid growing tensions between the u.s. and china. plus, according to filings jd was the top holder. barry has been making a return to the chinese sector. china's internet search leader. after the beijing-based retailer

cut prices to counter competition. they are seen a key bellwether of chinese consumption. ed: there will be a big e-commerce theme because walmart is also out that shows a 22% jump year-over-year and is online business. that's a story but what is behind it? what has walmart been doing with his digital presence? >> e-commerce has been an important business for walmart. it's one of the big factors of growth and what they have been doing is adding capabilities like delivering orders early in the morning and delivering items faster, same day.

they are also improving what they call the perfect order which refers to different metrics like when orders arrive or how complete the orders are and they been working on improving all of those things while cutting costs associated with delivery. caroline: the numbers are phenomenal and when you're looking at 4 billion items in the past 12 months delivered by same day or next day, that's comparable to amazon. i was just set down and make up saying have you seen fake handbags being sold on walmart? it came from a third-party vendor and they did not live up to expectation. >> marketplace has been one of

the factors for growth for walmart and it has been trying to add sellers. the huge benefit of that business is the fact that the company could really grow the range of items that it sells online and they see a lot of opportunities with general merchandise in particular. they talked about items like pets, baby going up in sales by 30% on marketplace. at the same time compared to selling items in stores, we will see the different takes they test out with that business. caroline: for now, outlook looking very strong. coming up we will be doing all things search. with the ceo of

perplexity aravind srinivas . ed: standby for daily game stock, meme stock update. down 24% in the session. there is a story about the meme stock frenzy unraveling but if there is a lesson learned is that meme stocks on market does not make.

caroline: welcome back to bloomberg technology and carolyn haydn you are. ed: i'm at the san francisco we had record highs but i wanted

dig specifically into tech. s&p up .3% mastec up as well. some of the u.s. listed but chinese automotive companies are under pressure because of the expansion of tariffs on those names. we are in the meat of the earnings season coming out of china. that index up is up 1.2%. the name of the week is alphabet, the parent of google. a lot of that to do with google i/o and the key announcement centering around a deeper focus on ai and how it is searched. it is another name etc. record high. maybe online but the market but

there is a lot of focus on this single name and enthusiasm google is making to combine as search history with this work on ai. caroline: there are a lot of other companies in that space. there is a key player making headway for the past couple of years and we will get to the business model and him moment. perplexity is creating a new advisory board. here for more is the ceo aravind srinivas . caroline: you are for male

directors, where some women? >> we have a lot of people from many different diverse backgrounds helping us. caroline: so one female and foster and board member. let's talk about what these three people bring across the board and experience what do you need in terms of advice? aravind: as a start up we've been able to scale up in a short period of time. we need strategy on search and build our index and scale it up

to more users. in terms of how our mobile strategy evolves. searches about distribution. you really cracked the distribution code to crown so we are working with email from hoover who was aggressive towards growth. caroline: someone say it was too aggressive? aravind: we tried to tone it down. startups have to be aggressive in terms of competing against incompetence who have millions -- incumbents who already have millions of users. a great mobile strategy a great mobile experience and recording a search.

he is going to advise us on getting a lot of in-house issue. ed: i have to ask you about google and the real emphasis that google put on integration of ai into search. this idea of ai overview. you search for something and it gives you the text answer as opposed to links. a lot of people want to know what is aravind srinivas reaction? aravind: is the same thing they just call this a different name. it's being rolled out to more people but not rolled out to every user of google. when

people go to google they hate the latency they expect instant surrender. the moment you wonder what's gonna happen. whether there will be links, ads or other panels. you are clobbered with all of these elements versus a single question answered. user likes simple, minimal, clean products. ed: do you have any information or sense that this was google responding directly to perplexity? aravind: possible. ed: how do you plan to respond yourself? aravind: by being a better product and working on categories of searches that they are not as incentivize two.

like shopping. i still get ads. there are categories commercially, insurance, travel, shopping, education. all of these different categories where advertisers are screaming at you to click on them. caroline: what's interesting, you have built, you use openai's large language model and rumors they will come up with the substantive search. aravind: their strategy is cleaner than what google is doing. they are building out a separate product. building out a separate product

they're competing for users from the same place. they are taking advantage of the existing user base and we are confident our work on using many models and many indexes on the orchestration we do will keep us the superior product but it is a good competition. we will watch what they release and secure it faster. caroline: is competition for talent, for dollars? this is not a cheap process. are you fundraising again? aravind: are there rumors? all i will say is we are trying to be efficient as possible and not going bracing a million dollar rounds. i would say yes, i agree with you. this is going to be expensive you will have to fundraising again at some point but our goal is to get our revenue in good shape so as we scale in terms of

number of people there is good revenue for the employees. ed: welcome to bloomberg technology. i'm glad you're in the studio with us today. we get a lot of questions from the audience. there are many perplexity users out there what always strikes me is how simple the questions are they want the daily active metrics, where these people are? aravind: we care more about the number of queries we get every single day that's a better metric for us because it's tied to expanding our index. we are pretty close somewhere in the late single digit is. that's really good progress from where we started. every single month we serve millions of inquiries.

looking forward, being chats served a billion inquiries and we had 500 million. looking forward, if we sustain these growth waves were headed for a great future. ed: i wrote on monday that consolidation is coming among ai startups. have you held talks with bigger technology companies about the potential of being acquired or do you see yourselves as an acquirer of smaller names? aravind: i agree with you on the broader line of consolidation that's already happening with the ai startups that are no longer there. the ones that exist are getting more and more powerful in terms of market share and apis.

we have looked into acquiring smaller startups. we are always looking for new, hungry founders. even though they are faster than executing than engineers. ed: aravind srinivas from perplexity. sticking with ai this sentence bipartisan ai group released is highly anticipated roadmap to provide guidance on congressional efforts to harness ai benefits but mediate risk. they recommend ready to billion in annual government spending to support non-defense ai and

development efforts to stay ahead of rivals like china. caroline: a long time coming. now we will take the conversation forward and diverge into the world. sergey nazarov will be here to talk to us. we currently under pressure 1.4. the rest of the market is pushing higher. meda being suspected of hacking kids facebook's this coming out of the digital services act that could lead to fines. from new york, san francisco, this is bloomberg technology. all words you want from your bank. for nearly 160 years,

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ed: this is bloomberg technology and this is the live shot of the principal room. tune in monday where i have an

exclusive interview with the ceos live in las vegas. this is bloomberg. let's talk crypto and asset tokenization with chain-link a company that links block chains and brings real-world world data on chain. and works with bank of america and citibank and this is had breaking news. segey nazarov brings us that now. >> we have been working with them from some time how to create on chain digital assets driven by data. the report that comes out shows how data can flow into assets on

chain and prove critical things about the assets on an ongoing basis which is different from how the current financial system works where the ownership of an asset does not give you access to data. the report was around smart nav and include jp morgan and be why mellon. real-world asset tokenization is taking a more mainstream, institutional interest level especially you real-world assets backed by data. the difference here is that the asset can have critical information about it continually updated and the holder of the asset or the buyer does not have to search for that data and they

don't have to have expertise in the data can move across chains. how does the data and asset move across chains? this is just some of our initial work together in i am hopeful there will be more. caroline: there are many vocal critics of some of the actual coins and investment opportunities but they have always said they like the underlying technology. jamie dimon of jp morgan for example. sergey: financial institut ions have a role to play in compliance and allowing users to use the products and that compliant way.

in a way that regulators in a way that regulators and central banks find acceptable. i don't think a central banks are going away i think they're going to use the technology and it will be the biggest next users of blockchain and generate the most assets, most payments and do it underway that complies with legal requirements. we are in a place of fear 2.5 trillion you can go as high as 10 trillion off hedge funds and prop traders but if you want to go to the hundreds of trillions that will be in the blockchain format you need the global sea sds, central banks, commercial banks adopt the technologies and that's what this collaboration has been about providing technical value in ways that benefit the traditional

financial system and consumers and web three blockchain community. caroline: which particular real-world asset will be ultimately see being put forward on the blockchain forward. for the audience out there who happen to be trading equities or commodities where will they see their assets headfirst? sergey: it will vary by institution and what institutions are good at. there are two categories, the core financial products of the current financial system, treasuries, market funds, bonds. these are being tokenized by bigger institutions around collateral management and diversifying earnings.

you have assets on the edges. assets that have not been tokenized. these are assets like carbon credits, real estate, private equity. they are the assets that have not been securitized and being securitized in form of a took a nice product. these are the things that people have press releases about because they are a more exciting that new product and there are intensive trillions of dollars in values and the net new product category. i am seeing both of them happening at the same time. the tokenization of treasuries and more foundational products and advance securitization

of products. ed: great to have you on the show coming out the talent war intensifies in the tech world. the service is going on the offensive. stay with us we will have those details. this is bloomberg. ♪

caroline: surface is beefing

up. how, hiring from a larger competitor. everyone loves to hear people shifting people from other places. >> we love a rivalry. service now is of fast-growing software companies. while other software companies have had depressive environments. where does that leave them? edging into salesforce. that's what we're seeing here. they have hired from salesforce and stop using slack. they have a fun rivalry here. ed: henry chang will speak with

benioff i wonder if it comes up? put that aside. competition is not new. is that salaries, stock? >> part of it is there has been disruption at salesforce. they had big layoffs a year ago. sales people got laid off over there and they said we need more sales people their experience. it was that the executive level two. service now chief officer came from salesforce. there are pretty aggressive offers happening here across the board. it's interesting to see what this new infusion of talent does for them they may have grown their headcount by 3000 and most companies have cut by that amount. caroline: i love bill patterson is giving you the quote that

imitation is the buzz form of flattery. >> the largest company does someone it and got engage in this sort of thing. caroline: we will see how they handle some of those questions. great writing, great explaining. love having you on. that does her for this edition of bloomberg technology. ed: check out the pod. you know exactly where to find it. one day left in this fantastic week. keep it here with us this is bloomberg technology. ♪

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>> welcome to bloomberg markets. equities are surging. the s&p 500, nasdaq and dowell touching record highs. the dow passing the historic $40,000 mark. the s&p firmly above 5300. a leg higher. 2/10 of 1% and the nasdaq 100 up three tenths of 1%. dow jones industrial