announcer: this is bloomberg technology. caroline: live from london, coming up, stocks whipsaw. the micro picture. the ceo of service now on earnings. venture funding with vanta and

sequoia capital. enormous selloff yesterday. $760 billion erased yesterday, a total wipeout. $1 trillion wiped off the nasdaq 100 broadly. today signs of calm creep back. isabel lee, what has been driving this market? isabel: stocks stabilizing today. gdp grew faster than expected. the economy is holding up. yesterday was a reality check.

the s&p and nasdaq 100 saw their worst days since '22. alphabet with bloated capex. investors thinking when will we see the roi of ai investments. it's revolutionary but not overnight. caroline: decent numbers out of service now. generative ai revenue in areas. valuations. they just became absurd. isabel: yesterday i was with a pm and he talked about the mag five. this is a stock pickers market.

you have to be nuanced. each manager has different levels of tolerance and entry. traders are not hedging against swings. nvidia is rising to the highest level since march. investors are more cautious in how to approach. what goes up will not always go up. we only saw two. five more to go. microsoft july 30. nvidia on august 28. it is too early to declare that this is the end of the rally. caroline: may there are options? small caps. a rotation happening in the broader? isabelle: there's been a rotation in rally, it has been

the mega caps the first half of the year. now, a rotation beginning in small caps starting to shine. as the fed cuts, now looking september, although bill dudley called for june, july rather, small caps stand to benefit. they are outperforming for the 10th time in 11 days. the u.s. elections, therefore we see lower taxes, based and to benefit. we see other parts of the market now shining. caroline: volumes are hard today. so are the benchmarks. appreciate the deep dive. service now managing to push

away the anxiety by reporting better than expected second-quarter earnings wednesday after the bell. the president be resigning after a probe. i broke it all down with bill mcdermott. bill: i have been blessed with 25,000 of the best i have ever worked with. they come to work for our customers. we built this for business transformation. ceos need to grow businesses. they cannot do it unless they simplify. they are complex. clean up the mess to serve customers, employees and innovators better. they are doing it on one common platform. the genai revolution is real for

us because we built it. we have domain specific llm's. we work with customer data. zero latency with speed. it is highly secure. we are able to innovate net new innovation constantly. we are constantly releasing it to the market. our business is doubling quarter after quarter. no one else is doing it. it is a thrill. caroline: let's talk about salesforce. workday. they are teaming up. are you worried? bill: perfect. it's what i said. they have departmental solutions. one focused on the customer, one on hr.

architecture has been around decades. we use data in those systems for customers so they activate this new world on the service now platform. what good does it do for a ceo to have the sales director optimized but they are not included in workflow that deals with customer from the product you build to ship and ultimately the customer uses and gets satisfaction from. it's one thing to have a system of record where i have benefits for my employees. it's another thing to recruit them, onboard them, train them, give them everything they need in real time and constantly evolve the genai use cases on mobile so they have a beautiful life. we do something different.

they do something important too. our job is to make sure the customer wins. caroline: are you taking market share? bill: we are the unicorn. one of the analysts put it beautifully today. exclusive brand in the enterprise software industry. no one is growing as fast as we are. world-class when you grow at the rule of 40. we are operating mid-50's. we are beating quarters and raising guidance. the genai revolution was thought through. our engineers built the best in the world. our go to market machine is unstoppable. the supporting functions in our ecosystem are working. we come to work for the

customer. private-sector or public, we work for you. people appreciate that which is why we have 99% loyalty. caroline: public-sector, analysts noting nervousness in the hiring sphere. the president and coo has left the company. you did a deep dive into what had occurred with the former u.s. army official. for those who are not aware of hr details, explain what happened. bill: i can tell you what i told the capital markets yesterday. we received an internal complaint. we take all of them seriously. especially when it comes to a

public sector entity. we love our federal business and care deeply about citizens of the u.s. and service professionals and how we serve them. we elevated that to the board, a special committee was formed along with outside counsel. we investigated the facts and came to the conclusion a policy was violated and reported this to entities that should receive the reports in the government. we were proactive. we have that behind us. hopefully. it's one of those things, integrity and strict adherence to policies is just something we care about in our culture. we do not grade that on a curve. tough decisions have to be made when they have to be made.

caroline: bill mcdermott. let's continue with brody. you looked into that hiring an ill-timed hiring. what do you make of that? brody: the person who departed was a big deal. the number two person in the company. he was thought of as their product leader. usually when a sales leader departs abruptly, that can mean short-term disruption. when a product leader departs, that might mean a long-term disruption. investors were concerned. they were more excited about the revenue numbers.

maybe the cj departure was not the greatest thing but the stock is up 13% today. it was not enough to ruffle sentiment. caroline: morgan stanley saying it was surprising. the strength was broad-based. genai momentum is building. is it unique to service now? are we seeing it with ibm? brody: that momentum for most vendors is an open question. service now spoke about it fueling the big deals. we got a superclean number. during a capital market stay this year they said it will take a while to uplift the top line. it's maybe helping people get excited. ms. genai -- is genai alone

contributing a lot? it is hard to know. all of the big companies will consult. can you help me figure out what i should be buying here? that's great news for ibm. caroline: they were specific. they broke down the number. that might shift. anything else from ibm? brody: as a consultant, most genai revenues are. over time, does it go to software? or are they going to use openai models like many others? that's what investors are watching for. caroline: busy man.

thank you so much. we've been talking about movers. topsy-turvy gdp figure, down hard yesterday on the nasdaq, managing to crawl back slightly. massive wipeout of market cap, $1 trillion yesterday. how much can we push back as gdp is stronger-than-expected? ♪

caroline: galaxy has just raised

$113 million. the fund expects to reach the 150 target next year. crypto tied to a selloff in big tech. bitcoin and ether lower as sentiment soured. how much is this tied to equities, to the yen? >> this market is interesting. we are seeing inflows and outflows. the etf got approved. on the first day, a huge amount of money, $170 million.

grayscale had an outflow of $800 million. at the same time we saw the german government selling bitcoin. these were locked and priced $100-$500. the outflows are getting more than the inflows. a lot of volatility in prices. the valleys have plummeted. the news on different funds raising money, a lot of them are keeping their fund open to keep raising because there is not much liquidity in the space for equities or liquid tokens. caroline: what about

institutional adoption? where is the lp money coming from? the same institutions backing etf's? kavita: at different places. in the public, you have institutions. in the vc, you see bigger fund to funds, university endowments coming in. at a mid-level fund, we see a lot of individuals and big family offices from middle east, latin america, india jumping on the ground. we see more adoption and openness after the approvals. caroline: global in its adoption. back to the u.s., how much is

the election a risk? we are about to hear trump speak at a blockchain event over the weekend? kavita: fascinating. he is speaking in nashville. there were rumors, kamala harris might show up. trump has called himself a crypto president. 10 years back this was speculation. what i am excited about is to see whether kamala harris, what is her view on crypto? it is a fresh slate. will this be a continuation or no? caroline: great to have time with you. ♪

i was the last athlete out on the floor and i still had a full round to go, and everything in me was saying, “just stop.” i kept plugging through until i got time capped. because i didn't quit

and i just kept trying as hard as i could, it's actually one of my fondest memories of all the games. i want others to feel that their worth is based on their efforts and their willingness to put themselves out there. our effort is the only thing we can control.

caroline: is roblox safe? a message of warning. some viewers may find this disturbing. >> social platforms, gaming platforms have struggled with x-rated content. what's different about this, is we are seeing examples of cases shifting from the online world to the off-line world where kids are being kidnapped, abducted and sexually assaulted by predators who have connected with them on roblox.

>> so many horrible things have happened on roblox. i've seen games that fully stimulate sex with penetration. there has been predators who have transported children hundreds of miles away. >> roblox has 77 million daily users. 40% of them are under 13. >> any time have an audience, mostly kids, creditors will be there looking for victims. >> who has ever seen a room full of people laying around in their underpants? some full long things are happening to kids. it is subtle the way it starts. >> what was he saying? >> he would make jokes like the younger they are -- >> there are some that will pay

children to do sex acts on camera. roblox is bringing their platform as safe for children. >> we have to start thinking about how we do roblox differently. it's like going to a place rather than playing a game. caroline: the full documentary at bloomberg.com. we want to dive deeper into one of the authors of this investigation. cecelia, important work. some of the stats are her thick. -- some of the statistics are

horrific. how is this happening? how is grooming coming off-line and what is roblox seemingly doing about it? cecelia: 30 million kids under 13 log on every day. parents know it. roblox know it. creditors know it. it takes a minute or less to sign up for an account. roblox allows anyone of any age to sign in. unless parents go into safety settings, kids who login are able to chat with anybody, any stranger. we were interested in understanding how predators were abusing children using roblox. we found dozens of freedom of information requests from police documents explaining how predators were doing this. some communicate through chat.

others use the currency. one pattern we noticed -- some torsould meet kids over roblox and move them. ♪ sandals rhythm and blues caribbean sale is now on. visit sandals.com or call 1-800-sandals.

caroline: welcome back. a volatile day. are we trading higher still? abigail: mixed. the major averages higher. s&p up. nasdaq down 1.7% at the lows. the dividing factor is the

stocks. let's dig in. the major stock influencing this is nvidia. down slightly at the open, at the lows, 7%. a 14% slide in two days. a key technical level has been reached. now up slightly. that level is 118. not surprising to see this go below 100. can they put up another blowout quarter? we won't know until the end of august. there will be other earnings to look at. service now soaring. they put up a good quarter and

boosted their guide. green shoots protect, genai. tesla fell yesterday but long-term the quarter was fine. they beat revenues. the move toward autonomy up 3%. there are stocks down on the day. microsoft, second largest company in the world, down. these other chip names down. this helps describe broadcom, amd and meta down. the nasdaq 100 heading to a third down week in a row. caroline: particularly in europe, st micro shares falling four the lowest in four four

years. let's get more on this selloff. nancy, so good to have your voice today. the macro picture. this rotation, small caps, are you buying this idea? nancy: hi. i don't think so. could be wrong. if you look at small caps, i looked at performance, the iw m for 10 years and 20 years. the 20 year, you had low interest rates, growth. they lagged the large-cap index s&p by 250%. over the 10 years, they were about half the s&p. if you expect rates to come down

for the right reasons quickly, that will benefit small caps. i don't think that is the case. i think we see a slow decline in rates. many companies are highly levered. earnings are not great. for now, if you think the economy is slowing, you want to stick with names like service now who have delivered consistent mid 20% growth the last three years. caroline: on the macro ideal, adena joined us on whether we are joined by animal spirits in macro policy. adena: investors have more risk aversion. we are seeing good progress. '25, we should see more momentum. caroline: she's talking about

ipo pipeline. do you agree people are risk-averse? doesn't feel like that with record highs on the benchmarks. nancy: we have $6 trillion in cash on the sideline. investors are hedging. we think we are in the early innings of a new bull market driven by tech and genai which we think will drive productivity . in the u.s., pc, you see we hit a 25 year high. from a macro standpoint, the gdp would indicate we are not slowing. let's assume we are. that's always good for risk assets that generate reliable earnings.

the data is mixed. it gets revised. you have to look at the company level for the best info. caroline: let's go. bill mcdermott, service now, you are a fan. you have been committed. from him, our pipeline is doubling quarter on quarter because of their new optionality. they signed 70 deals in q1. they've doubled that. listen to bill on how real the hype this. bill: people are whitewashing ai, pretending they've got something. ask to see the demo. show me the product, the use cases.

do you know my industry? how can i turn that into productivity? there's a lot of pretenders. we are not one of them. we are a winner. caroline: today the stock is a winner. who are the pretenders? who are the winners? nancy: proving why he is such a great ceo, he is a great salesman. i'm buying. microsoft is a winner. that may seem obvious. they are a leader. they will integrate genai throughout. the chip names, usual suspects, we own the poor man's broadcom. they are a winner.

application wide, you can look across providers. adobe is probably a winner. the crm workday joint venture, your interview was excellent, is indicative of the fact they feel threatened by service now's penetration into both of their business lines seamlessly. they need to join. we exited crm. we are not convinced they are winner. caroline: always good to get your clear line thinking. alibaba making another a ideal. -- another ai deal. it is valued at $2.8 billion. they are a leader in the space

in china. sustainable metal cloud is raising $950 million in new funds. the company hopes to spur growth by tapping into guess what? fintech firm revolut received its u.k. banking license. it comes with some restrictions. they will now move to mobilization. coming up, we get the annual report on the investing landscape.

♪ you know what's brilliant? boring. think about it. boring is the unsung catalyst for bold. what straps bold to a rocket and hurtles it into space? boring does. boring makes vacations happen, early retirements possible,

and startups start up. because it's smart, dependable, and steady. all words you want from your bank. for nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled... which is pretty un-boring if you think about it.

caroline: check out our podcast. you can find it on the terminal, as well as apple and spotify. women have gained a foothold in the tech industry five years faster then a key advocacy group expected. a national backlash to dei initiatives is threatening the progress made. this report has the highs and lows. we are seeing more female, non-binary decision-makers invc,

then you anticipated? >> exactly. our organization has been committed to the success of women and non-binary investors since the beginning. we've seen a doubling from 9% to 17.4%. for the amount of funding going to women founders at the early stages, retracted at 11%. it is up to 27%. big opportunity here. caroline: meanwhile, the pendulum has swung on the de i perspective, whether or not it is action or people are not talking about it, how is it affecting the amount of women and non-binary being invited to join popular vc superstars, when

we think about the latest ai company? >> our community members are investing. firms who are part of the community know that diverse firms get better returns. of all the firms in the top quartile, 69% had women decision-makers at the table. the data is there. we need to continue to talk about it. it is not being told. when you look at venture capital firms who increased hiring of women partners by 10%, they see and on average fica 1.5% in overall returns each year and have 9.7% more profitable exits. we have so many check writers in our community. caroline: it's been a hard

environment for venture in the last year. more diverse meaning more diverse founders and whether they are coming in the world of ai? bloomberg shone a light on what they see as the 10 must have vc companies at the moment in ai but none of them were run by women or diverse founders? paige: some of the biggest funds raised were raised by companies with women led teams. we see women at the top of teams and there is opportunity to continue to grow. that is one of the reasons we are so excited. you will see us tell more stories. the second part is we look at diversity on the founders side,

we know we have to diversify who writes the checks. great research says female partners invest in two times more female founding teams at the earlier stages. there's a great opportunity to lean into diversifying teams so we see diverse companies in ai, health care, education and more. caroline: love the data. paige: we love facts. caroline: thank you. great to have you. let's talk to a female founder. vanta recently raised $150 million. they plan to use it to work more in, you guessed it, ai. thank you for joining us. you raise money. the idea is what?

put money in ai and let more trusting abilities to the companies you serve -- how will you invest? >> we are excited to take this money and invest in our customers. a big part of what we do is replace manual grc and risk processes and help teams take advantage and synthesize it into something they can act on. ai is really good at that. taking information and putting it in another format. one year ago we made heavy ai investments. we shifted products. we are excited the new funding allows us to triple. caroline: what does that

investment look like? people? talent? compute? what? christina: mostly people. it's a combination of engineers. we talk about the ai engineer. it is subject matter experts. security professionals. risk professionals. compliance professionals. that pairing of engineer and subject matter expert helps us build great experiences for customers. caroline: you were founded 2018 after high-profile data breaches. they keep happening. doesn't at&t know it? interesting how you are finding your fit. christina: the breaches, there

is skepticism around the world about ai. there is optimism. overall, tech can be seen as less trustworthy today than 15 years ago. vanta is founded to help restore that trust. what we help customers do is implement best security practices and demonstrate to customers, so they can take more assurance and trust that the software they are using is built as trustworthy and reliable as possible. caroline: great speaking with you. thank you so much. christina: thank you. caroline: congratulations on the round. coming up, the nba has just announced a contract with disney, comcast and amazon.

warner bros. unable to match the amazon offer. let's check on markets. clawing back from the lows. nvidia sinking again. st microelectronics in europe claiming depressed demand. intel off. amd also lower. still questioning the ai hype. ♪

sweat isn't sweet. it's salty. lmnt. more electrolytes. zero sugar. you feel the difference when you get it right. stay salty.

sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh

caroline: universal music group shares fell 30%, marking the biggest decline since ipo in '21. there are barriers with social media platforms. the nba announced a long time tv contract with disney and amazon. warner bros. was unable to match amazon. this will begin fall of next year.

this was a tussle. >> warner bros. discovery waited until the last minute. they had the opportunity to be a partner. they couldn't match a price so they waited for whoever and evidently they tried amazon. the nba said no quickly. caroline: for what reason? obviously money but they must be thinking there is a viewership addition here? randall: three reasons. tnt wanted to stream all the games on cable and service. amazon is full-fledged streaming. second the nba believes amazon's reach is greater. and they would do the first three years upfront. when the league reached out to

new partners, they wanted a streamer, and they got one. caroline: no mortgages thanks. [laughter] what does this mean for amazon and other rights? randall: they have stuff with the nfl. thursday night football. they have a lot of docuseries. this is a new era for amazon. they will have playoffs. if you want to watch the biggest media sports deals, you have to have amazon. caroline: telling it straight. randall: thank you for having me. caroline: that does it for this edition from london. don't forget to digest it all. our podcast on the terminal, online, apple, spotify, wherever you stream. ♪

how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now. when people come, they say they've tried lots of diets, nothing's worked you've got more options than you know. or they've lost the same 10, 20, 50 pounds

over and over again. they need a real solution. i've always fought with 5-10 pounds all the time. eating all these different things and nothing's ever working. i've done the diets, all the diets. before golo, i was barely eating but the weight wasn't going anywhere. the secret to losing weight and keeping it off is managing insulin and glucose. golo takes a systematic approach to eating that focuses on optimizing insulin levels. we tackle the cause of weight gain, not just the symptom. when you have good metabolic health, weight loss is easy. i always thought it would be so difficult to lose weight, but with golo, it wasn't. the weight just fell off. i have people come up to me all the time and ask me, "does it really work?" and all i have to say is, "here i am. it works." my advice for everyone is to go with golo. it will release your fat and it will release you.

>> welcome to bloomberg markets. i'm sonali basak. investors on a wild ride this week seeing cracks in the tech heavy rally that has driven stocks from a record high. the s&p 500 had been fluctuating through the day. you are watching it seep into the green. it is about .5% higher. the nasdaq 100 also in the green friendly by .2%. the philadelphia semiconductor index about .2% lower. to your yields now down