>> welcome to bloomberg markets. >> let's get a check on what is going on in the markets on this friday. looking at continued gains or rather gains again on the s&p 500. we started up then came down and now we are back up again. if we finish in the green, it'll be the seventh consecutive day of gains for the benchmark index -- we see the 10 year yield continuing to rise.

3.77 all day long. we have seen the dollar index come up a little bit, but weakness against the euro as the ecb continues on its rate hike path and a lot of market watchers think the fed is. cents a barrel to 71.28, hopes we can get more stimulus out of china. jon: the oil market watching that closely. a couple names we are watching in terms of individual movers, medical cost concerns weighing on humana shares at this hour. that stock down about 4%. there are plenty of stocks that are seeing green today. virgin galactic with that commercial space plan being put forward today, exciting investors although shares which can be quite volatile have come off the highs of the day. let's go back to the bread and butter technology companies.

overnight, adobe with an encouraging financial picture update. that is a company that has been leading -- leaning into the ai craze. investors have been enjoying the ride for adobe, up another 2%. nvidia all-time high territory with stock up another 2% after getting through that trillion dollar evaluation level. it has added give or take another 75 million. matt: we are paying close attention to these big stocks, especially fueled by ai. that craze has pushed this rally up. it was a big topic at this is bloomberg london tech event. googles deep mines ceo discussed ai's potential. [video clip] >> there is no doubt ai is going to bring changes and disruption. if you look at the history of these things like internet and mobile over the last 20 years, they caused huge changes but

whole new categories of jobs were invented. better quality jobs, higher-paying jobs. i think that is what is going to happen again with ai. jon: the optimism over ai helping send the s&p 500 into bull market territory of late. we mentioned those shares of adobe moving higher on some of his new ai optimism as well. that stock hitting its highest level since february 2022. joining us, bloomberg intelligence senior technology analyst and bloomberg's executive editor of technology. thank you both. tom i will start with you. you keep hearing from all of these executives that we are entering this new era, i think investors get very excited about that. the technology industry always likes to talk about impressive new roadmaps and big, new opportunities. where is the steak and how much of it ends up being sizzle?

>> we have been going through, we are just through several years of downturns for the tech industry. people are looking for investors -- people are looking for, investors are looking for the next big thing. technology has glommed onto generative ai. in a company that comes out with a product offering, with a roadmap that shows how they are going to benefit from generative ai, that supercharges their stock. we are seeing that with adobe right now. adobe was considered for a while a dog when it comes to ai. this is the maker of creative software, used by creative professionals. the thought was at the outset, generative ai would adobe out of business in many ways, that you would be able to generate images

and graphics and all things adobe software does for you without adobe's help. what adobe has smartly come in and said is, we are going to use generative ai technology and weave it into our products and make them better as a result. it's stock is skyrocketing right now. matt: they have a software suite that takes care of a number of things plus give you copyright guarantees against copyright infringement that are probably really important for commercial usage. what are you seeing in terms of plans that are actually going to make money right now? how any companies are able to use this artificial intelligence, really marketing jargon, it is a software sweep. how many companies are able to use the software sweep to charge customers whether they be consumer or business customers for transactions? >> i think that is a couple of years away because the roadmap

is going to take a while for the products to be launched and modernizing. the biggest beneficiary in the near term is going to be the cloud providers, people like microsoft giving the backbone to these products to be run. openai runs on microsoft, i think that is where the consumption numbers should be high. we will see what happens when data pulled in terms of whether clients are using a lot more of those products to test out things right now. >> i guess if we are trying to figure out at the winners and losers of this story, you have seen a huge amount of attention in the nvidia story. you referenced adobe, you have had this huge run-up in microsoft already this year. does this become a situation where, for all of those years you were covering the new class of companies that were coming to market in the social media realm

versus traditional players that already have a lot of ai firepower, how is this going to play out? >> i think to amplify his point, these companies are going to need to show they can monetize all this time. there is a lot of talk, a lot of products being tested that are just introduced into the market. i will say, one thing about microsoft is its relationship with openai is a big deal for them. they have started to capitalize on that relationship by weaving some of openai's technology into -- that help software coders create lines of code. the expectation is, that is going to weave its way further and deeper into microsoft's product suite. some products, not just used by software coders, but ones used

in business applications. the onus is on companies like microsoft, like adobe, to prove that all this talk is going to result and translate to real revenue. if you talk to the analysts on wall street right now, the expectation is this could make a very big difference to the bottom line for some of these companies. to get back to the nvidia point, nvidia is not necessarily need to make the products that touch the consumers. they are just making the chips that are used to run the servers to generate all the power that is needed to create these products. nvidia is benefiting the whole picks and shovels argument we saw during the hype cycle around crypto. if you can create the technology needed to make it run, you benefit, too. matt: i get the picks and shovels argument with nvidia. it looks like microsoft has

managed to conjure gold because with get hub and openai and the big cloud movement, these all look like pieces of different businesses to me. now, i can see the crystallized strategy with the copilots you are talking about. this seems to me like the real moneymaker. with bing, they can draw people who normally would only think of google as search. if you use anything else previously, you are a troglodyte. google does not seem to have anything that can compete. >> microsoft is better positioned than anybody else, openai is creeping up everywhere whether microsoft excel, get hub, bing. modernization of that part of it will take a little bit of time. i do not want people to get excited when they report in the next one month. on the cloud side, we expect

revenue growth as well as marginal pressure. these things are expensive to run. matt: thanks for joining us. two rap what is certainly the most interesting market driver of the year. we will continue to talk about this, whether you want to call it ai, software or salami. we talk about coinbase versus robinhood in a fight for crypto retail investors, very interesting moves in terms of market share. our stock of the hour is next. this is bloomberg. ♪

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jon: this is bloomberg markets with matt miller. time for our stock of the hour. climate shares getting a boost today after blackrock, the world's largest asset manager filing with the sec for a bitcoin etf. blackrock partnering with coinbase which would act as a custodian. the road towards bitcoin etf's has been tricky. coinbase is navigating a fcc lawsuit. it has been a couple caving time in crypto and crypto platforms. matt: mizuho argue data from april indicates the firm may be losing market share in retail as, regulators crackdown losing market share to robinhood. here to explain is mizuho's -- and katie greifeld. let me start with you.

how much of this is coinbase losing market share rather than robinhood gaining market share? >> thanks for having me on the show. it is interesting, is a closed loop. the way we looked at it is we looked at the relative share of coinbase versus robinhood, we did not include anyone else. in this closed loop, it is very clear that share is moving away from coinbase to robinhood. we have done other work that shows either robinhood, that coinbase was losing share to the entire ecosystem. this is the first time we are able to prove it in its affect. that is what makes it interesting. matt: you are a cross asset reporter, but you focus heavily on crypto. you noticed this, as well. it comes with increased regulation, scrutiny on coinbase. how much of this is investors

who were using coinbase a lot pulling out? katie: that is what i want to ask dan. coinbase is having a tough time with the sec right now. the sec filing suit against coinbase. it is interesting, your analysis seems to predate all of that legal back and forth. how much is that regulatory overhang factoring into basically this gratian away from coinbase? dan: i think that is an excellent question. our data is from april. the reason it is from april is it was a got you moment, where we will able -- we were able to triangulate enough data points to hone in on that share loss in make it affect. the way i view this, everything that happened with the sec was subsequent to when we did the work, which means that it is going to get worse from here. i think this is the kibosh from here on. it was bad before, it is going

to get worse going forward. jon: what about, dan, the fact we have seen shares moving today on some of those headlines involving blackrock and the bitcoin etf bush? what was your reaction to that? dan: when i saw this, it is not new. coinbase traded up 20% last year when the blackrock news came out. this is kind of regurgitation of old news, as far as i am concerned. nothing new in this blackrock thing. it is a head scratcher to me. why would blackrock get into this thing? hey, i do not have good answers for everything. dan: the newness -- katie: this was an application for a physically backed bitcoin etf, structure does not exist in the u.s. what was interesting about the

way coinbase comes into this, coinbase would serve as the contest -- as the custodian of this blackrock etf. you think about the grayscale bitcoin trust, coinbase is the custodian to that trust as well. when thinking about the holistic's of coinbase business, how valuable could the custody is in his be -- business be? dan: the head scratcher is, why would they even get into a bitcoin etf? they are facilitating investment in air and something that is really worth nothing. that is where my head scratcher is. whether you are the custodian or the issuer or blackrock, the whole thing in my view is completely silly. hopefully, i did not answer the question but, i am questioning the whole essence of bitcoin etf. matt: i think what katie is

focused on more is -- i can let you say that. katie, you and i were talking earlier about whether or not coinbase has a decent business as custodian. i guess if they are not trading, why would they stick around in that business? there are other custodians not under attack by the sec. katie: that is the heart of it. even if crypto trading volumes are going down, and they have fallen off a cliff, could that be a silver lining for coinbase at any point? the fact that that -- maybe they could focus on the custody business? dan: custody business is better than going out of business, right? i would not call it the silver lining, i would call it may be a lifesaver at this point for them. remember, if those altcoins in

staking which is 30% of revenue, if those go away and the probability of it is quite high at this point given the sec and the lawsuit, nothing is going to matter. i do not think the custody business is going to be meaningful enough to more than offset the cash drain coming from losing those altcoins. that is my point, hopefully i am explaining it the right way. jon: let me ask a follow-up. if people are looking at what this business could become over the short to long-term, what exactly in your opinion are they investing in? dan: if they are bullish? jon: either way. dan: or in general? jon: just in general, where does this business go in your opinion? dan: in my view, it is going into the abyss.

i think it is game over for crypto, game over for coinbase. i think the stock is going to the 20's. if taking the other side, you are saying they are the regulated authority on crypto trading in the u.s. once they settle those disputes with sec, they are going to be the only game in town because everyone else is basically out of business. sam is home with his parents, binance has been, who else are you going to have to trade crypto? that is to bullish of an outlook, the probability is that this business is going to become increasingly commoditized and the ability to lower and retail is going to become impossible because retail became burnt on crypto and they are not coming back. matt: is it possible all crypto business goes offshore? everywhere else but the u.s.? dan: onshore just for 48 hours

in berlin. [laughter] typically, i am in new york. i think that is where they are headed and that it is suicidal. if the gospel of coinbase is to become the most regulated authority for crypto trading going offshore, or onshore for me, is something that would backfire at some point. i would not go bet against the sec and not go bet against u.s. regulators. i think it is a bad bet to make. jon: we are going to be watching closely. thanks for joining us. interesting commentary that we will continue to track and the world of crypto. coming up, michael jordan sale of the charlotte hornets is paying off in a big way. more on how much jordan makes from selling his majority stake, next.

this is bloomberg. ♪

jon: this is bloomberg markets. time for today's for what it's worth. our data point today, $3 billion, the reported value of the nba charlotte hornets according to the espn reporting today about michael jordan's agreement to sell his majority stake in the team to a group led by hedge fund manager gabe plotkin and private equity player richardson all. jordan is excited to keep a stake in the team, which based on this valuation would be worth more than 10 times what jordan hate himself to become a majority owner back in 2010. matt: we see a couple of real movement in the big pro sports

leagues, the hawks sale we were talking about last week. this stakes sale in the hornets, may the nationals are up for sale. it is interesting, a lot of these investors like jordan bought in or a couple hundred million and are selling for $3 billion valuations. you see a new slew of sports leagues like pickle ball that are going for a few hundred thousand or a few million and maybe someday we'll go for a couple hundred million. it is a great story. jon: bloomberg invest was talking about the value of pickle ball. the nba commissioner said you might regret selling that buck stake, there are only so many of them and the valuations continue to climb as we see with this jordan deal. matt: cool to see plotkin of melvin move up to a majority owner. this is bloomberg. ♪

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and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. romaine: chase the gains or hedge or's. live from studio bloomberg road headquarters in new york. we are seeing and equities this friday but over a five-day stretch, global stocks getting their mojo back. advancing for a third week with a trifecta of weekly gains across all regions. something we have not seen in almost a year. nikkie pushing up for a fourth straight week to the highest levels of 1990. the dax