>> from the heart of where money come and power collide, this is "bloomberg technology" with caroline hyde and ed ludlow. caroline: i and caroline hyde in new york. ed: this is "bloomberg technology." caroline: we will kick earnings coverage with the breakdown of disney results. is it enough to fend off the investor? ed: we sit down for interviews with lyft, arm, and affirm.

caroline: we will be joined by bethany bongiorno, the ceo of humane as the company unveils its ai pin. -- pen. let's get into a hot winning streak. can we eat out another day of winning on the nasdaq? since november 2021. the s&p 500 up for nine days, the longest winning streak since 2004. clearly there is calvin's issue behind equities because of what may be the federal reserve is doing. we will hear from jay powell come to court p.m. and getting some important bond sales. that is why we are seeing some pressure on the debt market. we will be seeing the sale, eight points to the higher side as we anticipated the -- coming through. finesse technical dragon, china

is down .7%. not listed here because it faces sanctions, but the key chinese semi conductor producer actually missing on estimates, even with integration with the huawei product. moving on, i want to see what is happening in crypto. pushing higher, off of the highs earlier. at one point almost 38,000. above 36,000 again. the dollar in the doldrums but we are up on bitcoin. ed: this is a buckle up kind of show, we have a lot of news, summer earnings and some ai news. we have a lot of ceos joining us . arm giving a forecast that has us worried about the smartphone market, how much is in the smartphone story, we will ask that question. affirm also with earnings, we will speak to the ceo. airbnb is out with some ai

futures they think will improve reliability on the platform. lyft, traded choppy, really significantly lower, not positive by .2%. it is the look for the current period going into the city records that worries us. the big early story, disney. continued cost-cutting, $2 billion of additional savings. the bob iger effect is working. there is the some activism. caroline: has this been enough to assuage when it comes to the focus on this company? disney earnings, we want to dig in. we welcome laura martin. the cost-saving strategy, the fact that they are pulling back on content and shutting more jobs, is it enough to assuage concerns? laura: i don't think so. they just did $27 billion of

content spending and should have been $30 billion because we had strikes. now bob iger is saying he is going to cut another $2 billion. if you are a content company come how do you cut spending lower than a straight here -- strike year. he had nice subscriber growth for this direct to consumer business, the most of any streaming company adds. if he cuts content cost again, he will have a horrible direct to consumer sub number. nor do i think this is a long-term strategy. ed: the streaming business is such an interesting battleground. the company said by the fourth quarter of the fiscal year, streaming can be profitable. given everything you've outlined, it is hard to see. do you see that?

laura: he has promised it for the past two years. the answer is he has to make it profitable. the question i have is will they do transfer pricing? when they put a movie on the big screen and then bring it to streaming, how much do they charge the streaming entity for "avatar" versus the linear tv business? i think there is some transfer pricing that you can make streaming look like it is profitable even if technically if it was a standalone company, it would not be. that begs the question about returns on invested capital bank -- capital. he said he needs to get better content. they made it too much and the marvel stuff is not working any longer. we need to get more hit films and series out of the walt disney company. ed: timing is everything. the headlines, the actors strike

ends, why is that important for a company like disney? laura: it is important for disney, warner bros. and fox because they have this robust -- because that is linear stream. without that, netflix has been positioned for them. that is their competitive advantage, they have these lovely series that are decades old. all of those have been shut down because the writers and the actors went on strike. their offerings looked like netflix offerings. now they're going back to work, they are going to get more television content, new 40 minute episodes. that is better for them than the competition. caroline: they are going to be folding in hulu, testing out how it is to have it all under one product. they are also eyeing what they

do with espn to make it the digital force they want to. where do you sit on the storyline coming from the ceo? laura: we would like to see apple by disney. ed: you are not the only one who thinks that. laura: [laughter] i think this notion of disney plus plus hulu into a mega app is a good idea. make a mega app. those are much more competitive with netflix than standalone two different apps. on espn, they are talking to a lot of partners because they want to create a new espn streaming app that cornered the market on sports streaming. i am intrigued by who that might be, whether it is amazon or apple or verizon. they said it might be marketing support or distribution support

or rights. i am very intrigued by espn. that is a little longer, he said at earliest that will be 2024-2025 launch. i am interested in a disney plus hulu super app. ed: where is the innovation story with disney? what makes disney a technology company if at all? laura: it is not, it is a content company and content is not working. content is the engine. what disney does best is drive theme park attendance, consumer product attendance, when your tv bundles, streaming subscription revenue. it drives everything. avatar, marvel, star wars. it is a content company, not a technology company. ed: laura martin bringing the energy this thursday morning. thank you for your time. coming up, we will speak to

david risher on the ridesharing numbers. caroline: instacart reported after the bell, better than this quarter they were telling us the numbers on. they are talking about macro economic headwinds and diving back of the advertising growth. ultimately, they are talking about several headwinds like the online industry. we are still -- they are still confident in the long-term opportunity of their business, particularly online adoption in grocery. a very confident -- even though the market does not seem to be buying it. this is "bloomberg technology." ♪

caroline: let's check in on the shares of lyft. they managed to push into the green as the ridesharing company reported a third-quarter revenue that beat estimates. people are cautious. it is tepid in terms of the sales outlook. i am pleased to welcome lyft ceo, david risher. spell out whether or not the growth you saw, particularly halloween being a blowout, if you can continue that and why not at least in pace going into the final quarter? david: i think it is going to accelerate. you never really know but i can tell you for the weeks leading up to halloween, we saw a record bookings. what that tells us is that people are getting out. people want to be connected with one another. we introduced a future for a scheduled ride to by the

airport. if we are not there any 10 minutes, we will pay you up to $100. we want to reduce stress so people can enjoy themselves. caroline: $100 if you don't get your car on time, even if you take a taxi or an u how much can you pay on incentivesber? to make sure people become addicted to your product? david: the truth is we don't want to pay a dime because you want to be reliable. we focus energy on making sure you get it scheduled ride to the airport, it is going to show up a couple of minutes early. it will wait for you, it will help you with your luggage. our goal is not to pay out incentives, our goal is to get you to the airport. if for whatever reason things get backed up, we will get you there anyway. ed: we learned a lot about lyft last night, the new data on

gross bookings and ridership. that got me thinking about your cost space and they take rate. i know that is both fashion speak, but you have had to incentivize and supply has not grown. i am interested in how long that dynamic can continue. david: when we think about supply, that means how many drivers we have. our drivers are up 45% year on year. it has not been a very expensive proposition. the incentives you are referring to were very important to drink with it. people did not -- very important during covid. people. do not want to drive people are coming back because his effectual job. they can -- it is a flexural job. they can stop anytime they want to. it has not been a big problem for us and we think it would be an easy thing to do, to attract more drivers. ed: for 2024, what is your

receptacle -- what is your goal? i hear there is good energy within the company but you have a lot of work to do. david: customer obsession. customer obsession is what drives profitable growth. that is our thesis. the better we can focus on our riders, the better we can focus on our drivers, the more we can grow. women plus connect which we launched which allows women drivers and riders to connect with each other, people of that. women riders can feel more comfortable and women drivers for the same reason. they are so focused, focused on 50% of the population that continue to drive satisfaction and writing with lyft. caroline: i am an abscessed customer when it comes to my bike.

i could send messages about docs not working. it is a heart infrastructure to try to create a perfect scenario for every rider. party thinking of partnerships when it comes to bikes? are you thinking of divesting? david: i love that you are a big cyclist. you are not alone. in new york city, we provide 160,000 rides a day. that is as big as public transit systems. a significant think for a lot of our riders. it is a complicated business. we are putting in new docks in new york. they charge the electric bikes which are huge source of growth. are we looking to partner? we are. we are looking to partner with organizations that invest in the infrastructure needed so we bikes can be more popular to -- ebikes can be more popular than they are today. ed: i am reading the sell side

reaction and even women plus connect, i see that as a driver for ridership, but i wonder if that has brought more women drivers to your platform and made you more competitive on the supply side. david: it has. only 23% of our drivers are women today and they only drive 15% of hours, even though it is a great job. you can log in when you want, you can log off. what that tells us is we needed to continue to invest in bringing more women drivers onto a platform which increases the driver supply. that is what we see happening. we are available in 50 markets -- 55 markets across the u.s. it is successful. it is a great example of a customer abscessed initiative -- customer obsessed

initiative which drives growth and profitability. ed: are you open still at this point for a sale or being acquired? david: i love the consistency of the question. we will always answer the phone. it is not our focus. our focus is on customers so they can get home for the holidays and get to thanksgiving stress-free. ed: you for joining us. coming up here on "bloomberg technology," we speak to max levchin. a big conversation coming up. this is "bloomberg technology." ♪

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ed: a firm shares surging today

after the company posted fiscal first quarter revenue and forecasts. joining us is the ceo max levchin and sonali basak. sonali: the market is responding to the numbers, revenue better than expected. there is a point i want to touch on and it is this idea of credit quality. even though you have seen deterioration, it improved meaningfully from a year ago. is that sustainable? max: i will point out that even the deterioration was something we predicted and communicated to the market. we said we expect a slight increase in december and then it will normalize back after. what all this means is we are in control of the current outcomes of the loans we make. it is in contrast to the rest of

the industry. anywhere you look, you see folks struggling to maintain quality performance. it is not an accident and not a secret. it is the structural advantage we have. we write short-term transactions , 4.5 months is the average life of a long. every transaction is individually underwritten which means we have an incredible degree and control over what we put in. sonali: another thing you have been talking -- about, you know have the affirm card. how much does that compete with you by now, pay later model? max: is complementary to it. i am heavily biased, but it is the peak achievement. it is by now, pay later on her debit card that works online and off-line, entirely puts control

in your hands. you decide it is going to be a transaction which settles against your--balance -- your cash balance. no late fees, no compounding interest, no gimmicky schemes. it is the perfect embodiment of what we have been working on. it is a compliment to everything we have done and we have incredible plans for the card. we will talk about her next week. we have years to build into this thing. ed: we got the analytics data that showed october was a record in the u.s. for online spending and be npl was -- bnpl was a contributor. you talked about the amazon relationship. what other modalities do you see buy now pay later growing into? max: there is more road to cover.

the singular shift, especially among young consumers, two thirds millennials and gen z, they ask for more transparency. they want an easier way to understand what they're going to open -- going to owe. that creates opportunity for a company like ours to grow. we think there will be an equitable growth in off-line. from our car but also from our app directly. we think there are opportunities any small business lending. we are going to consult and may be small businesses can get help there. there are lots of places where this idea of honest financial products makes sense and the consumer is hungry for it. caroline: morgan stanley calling out how you are communicating more clearly about the customer journey, how you can think about purchase capacity.

communicate about your investment capacity. how much do you want to be investing in the business? when we are thinking about how much you want your in terms of the world of ai, where do you lean in? max: we are fundamentally a software company. everything we do we do in-house and write a lot of code. fundamentally, from early in building great software. that is our area of investment. we are not a marketing firm company, we don't spend barely any money on marketing. we just build great products. when we speak of investment, we speak of hiring talented software engineers, underwriters, researchers. over time it pays for itself. sonali: you miss your guidance but before that your stock had

more than doubled. you are still down. if you look at the next leg for a firm, the next big ambition, the way to drive growth moving forward, what is next? going global, cutting a big deal? how do people think about the story moving forward? max: we have the intentions of going global. we spoke about the u.k. as our most likely next entry into the global market. we think there are plenty of retailers online and off-line that i stood to benefit from financial products. we are very active in the marketplace and have ample opportunities to help retailers with inventory, especially as we go into the holidays. if you look at the sheer size of the market and our place in it, as lucky as we have been, we are less than 3% less than looked on

e-commerce. there is so much more to go. we have a lot to go. caroline: max levchin, we thank you. from new york, this is ♪bloomberg technology."

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sonali: book --ed: welcome back to "bloomberg technology." caroline: we are on a winning streak. on the nasdaq, we are of 10 days straight. if you look at the s&p, the longest winning streak since 2004. the bond market selloff as we anticipate slides -- anticipate supplies. 36,000. apple, an interesting one. will they face a fine in the eu in the 13 billion euros figure? we are looking at what is

happening with airbnb because some product announcements coming. we are up .1%. $117 is where we trade but we will get the intricacies of what is going on with this business, how they are looking to improve. you have so much more on that. ed: we welcome our radio listeners and tv audience. airbnb is unveiling new features and ai powered tools, push to increase liability. listings rated above four appointment stars with less than 1% cancellations from host really get a new guest favorite label. to million out of the 7 million homes qualify for that label. let's bring in ceo brian chesky and emily chang. family -- emily: we can count on you to up the ante with these new product features a couple of times a year. i am excited about against

favorites. at the end of the day it is about driving business. how many additional bookings do you these features can unlock? brian: this is going to be a big a growth driver for us and the reason why is the number of people -- number one reason people like airbnb is the homes are unique. biggest problem -- the biggest problem with airbnb is -- and why people choose hotels is you know what you're going to get. how combined the best of both worlds? we took 370 million reviews and contacts and created this collection of 2 million homes. this is going to bring a new audience to airbnb. emily: there was focused on your outlook when you posted results. you talked about macroeconomic turns, he said bookings could moderate addressing signs of that. can you tell us more about the volatility, where it is coming from, how dramatic is it? brian: mostly what we are doing

is we were a few weeks into the quarter and sing a lot of geopolitical uncertainty. we wanted to be cautious. with you like our business is resilient. we have done $4.2 billion of free cache flow. that is a 44% margin. revenue grew 18% year-over-year. we are feeling good, we just wanted to exercise caution given what was happening in the world. emily: you said airbnb is ready to expand. can you give sats? where is -- give sats? where is the next level of growth and monetization going to come from? brian: we have only scratched the surface of how big our core business of booking homes around the world can be. next is international. we are in 220 countries around the world. a lot of our business is concentrated in the u.s. and a

few other english-speaking countries. whether an instrument new, korea, brazil, these are huge markets and that will create a huge amount of growth. if there is a company that would be able to expand, it would be a global travel network. i think airbnb can do more than offer homes for people to book on a nightly basis. i hope to be back on your show soon to tell you about this thanks. ed: to our audience worldwide, we are speaking to airbnb ceo brian chesky. emily mentioned these annual updates. you are hands-on product was but it is all done internally. i think about the investments you have had to make to make ai integrations. where are you spending? is it purely on talent? time and money. brian: i am spending most of my time on the product. let me back up. travel is one of the most aspirational things in the

world. if you ask people what they would do it all the money in the world, visit travel. companies are run by looking at financials and metrics. we do that but there is something deeper. you have to create an amazing experience for guests and hosts. we made 350 major features and upgrades based on what the community has told us. yesterday was a turning point. when we can have a major answer for reliability, the number one reason people book hotels, we have permission to do things. people don't want things from you unless they love the things you do. people are going to love guest favorites. we will be ready to see new things. my time is spent on innovation and what is next. caroline: that is a talking to regulators. people buying hotels in new york is because there is less supply. you call it a defective band, how is that going?

-- de facto ban, how is that going? brian: hotels are up year-over-year. if you have me on next year, i predict hotels will be more expensive. new york is turning into a cautionary tale. i am disappointed with how it could go. other cities have chosen a. different approach our top 200 markets, 80% have sensible regulation on the books. we found a solution, whether it is london or paris. paris, half a million people will stay in airbnb's for the olympics. we want to be part of the solution, not the problem. we are willing to come to the table and find ways to make the cities work. emily: what is going on in new york is dramatic. people are calling this the airbnb apocalypse and there are concerns of the cities could follow on. i am curious on top of that,

what are the travel trends you are seeing? are people wanting to say i am tired, i want a staycation? what changes in travel trends are you seeing? brian: we do not think new york is a trend. we think new york is late to the party, not early. we have worked with cities around the world. i think cities are not looking to new york. on the travel trends, it is interesting. before the pandemic, 80% of our business was people crossing a border or going to a city. the pandemic shut off -- people were staying in big homes, larger homes with friends or family, typically in less urban areas. what is happening now? the old airbnb's back, old ways of traveling, but the new ways are here to stay. there are two reasons why. even though some people are going back to the office were often, there is flexibility.

you can do more from an extended weekend. the week after for thanksgiving, a lot of people are not taking three or five day weeks, seven-day weeks. they are going to start taking those longer trips. it is a very resilient business and i think more people are going to travel because it was what was taken away from the pandemic. is how they want to spend time with people. emily: i want to the seven-day week. affordability, you are bringing down cleaning fees and prices have come down. do they need to come down more and can you do that without alienating hosts? brian: our secret sauce is finding this magic balance to make sure on the one hand he affordable -- the offering is affordable for guests. hosts are still making great money putting on airbnb. we are just trying to provide transparency, tools, and guidelines. in the u.s., prices are 3% down on airbnb year-over-year.

post earnings are at record highs -- host earnings are at regular highs. hotels are up. hopefully a year from now, our prices won't be going up as fast as hotels. that means airbnb is going to be a better value. caroline: brian chesky, we thank you so much for your time. emily chang as well. thank you. coming up, we will speak with arm ceo rene haas, the first set of earnings as a public company again. this is "bloomberg technology." ♪ that rate is increasing as more and more businesses move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network.

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caroline: arm out with earnings

for the first time since he returned as a public company. it beat expectations in the second quarter. shares you see under pressure at the moment, this is more about the outlook for the company. the best person to speak to about it is rene haas. you are back where you priced it on the ipo, a 5120 at the moment. to tell us about the industry when it comes to mobile. you have been diversifying it why is that not recruit here and now. rene: we had a record revenue quarter. arm has never done a hundred million dollars in quarter. we raised our yearly guidance so we are very confident about the outlook going forward. the stock is a little noisy based upon timing and things of that nature. generally speaking, we are

seeing our royalty business has increased three quarters in a row and what we're hearing from our partners in the trough in terms of the overall inventory and getting better and licensing business is a strong. great quarter and we have raised our yearly guidance. caroline: i am interested in the ai focus you have been having. there are licenses that are a bit lumpy at the moment when it comes to companies wanting to deploy the technology. i am interested in when that becomes big volumes. when does that become more dependable rising royalties? rene: one thing we saw this last quarter in terms of licensing activity was companies looking to invest more to address this demand for ai everywhere. the general perspective was you need more computer technology. what exists today is not enough, more is needed. across all markets, we are going to cai find its way into the end

product. for us, 70% of the world's population uses arm. it is impossible to do any application without us and we think it will drive great growth for us. caroline: r&d is needed. you say there is noise around for share price. that is the conundrum of being a public company, your business needs to spend to innovate and invest and now you have these short-term goals and investors want to see them in terms of revenue build and profitability. argue do that with a publicly traded company with a more demanding space? are licensing -- rene: our licensing was up which means companies are spending money on products that have arm inside. based on that and the royalty

lookout for the year, we did raise our guidance annually. we are very confident about the year ahead. as far as the balance between r&d and meeting goals, that is something every private company ceo has to consider. i don't think we are in a different bucket. ed: welcome to our television and radio audience worldwide. there is a discrepancy between the cautious outlook for the current period and this full fiscal year boost you had relative to the guidance during the ipo roadshow. what accounts for that discrepancy? why short-term worry but confidence that longer-term you are going to start booking on the licensing side? rene: we have got some time to help teach the community about how business works. are licensing business, a combination of timing and

ratable revenue in terms of when we can recognize the revenue, we have great visibility in terms of revenue profile which is why we are very confident in the year. inside the quarter, licensing tends to be lumpy. something might happen one month versus the next. we are very confident and have great outlook in terms of when those deals will close. ed: arm is mostly a smartphone story, low-margin market. you make gains in data center and auto. can you tell us when arm will stop being a smartphone story? rene: i can tell you that today. 60% of our revenues prior to the acquisition were tied to smartphones. today is less than half. we are not mostly a smartphone company anymore. our royalty revenues in the last quarter of 20% in cloud and 20% up in automotive.

we have a diversified and that is a commendation of a focused strategy to do so and the pull and demand for arm technology. these and what it is centers cannot afford to add more and more energy. at the same time, your automobile running off of a battery is a computer on wheels. it needs to be very efficient. the trends are in our favor and we have made an investment in products. we are seeing strong growth across businesses. we are not a smartphone company. caroline: 30 seconds left. london listing come anytime soon? -- anytime soon? rene: nothing i can talk about today. it is something we are considering but nothing specific i can tell you today. ed: rene haas, thank you for joining us. rene: thank you so much. ed: coming up on "bloomberg technology," we will be joined

by the ceo of humanity on her take on personal mobile computing and the launch of their new ai. this is "bloomberg technology." ce, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly.

>> it is an -- caroline: it is an ai powered

device but it is not have a screen. it is a device you pin to your clothes and it has users engaging through it to make calls and more, maybe translate what you are saying. let's bring in humane ceo bethany bongiorno. people will be able to start ordering from the 16th. people have been on a waitlist. what made you build it? it is going to replace the phone if i am getting this right. bethany: thank you for having me. it is great to be here today on a big moment for us. we have been building for a while and the vision has been to build the first personal computer that allows you to take ai with you everywhere. that is the vision we have had since day one. caroline: people have been excited to see what you are going to provide because you

have big backers, $230 million. you came out of apple, key to their product development. how do you think this will be demented for when it is the first of its kind. there will be competition. sam altman is looking at building a wearable. bethany: it is incredible we are at this moment where we are seeing the fact that we are at the beginning of a new age of computer. i think it is incredible that there is excitement around this space. we have been building this vision since 2018. we knew it would take time to build an ambient and personal computer in the way that users expect. i think is a meeting to see where we are now. it is just the beginning. ed: let's break down the software and hardware components. what is it humane has cracked on the hardware side and what is openai bringing on the software side?

bethany: we knew we wanted to build something that was going to be as powerful as a smartphone. the miniaturization, the development of the antenna, we have an antenna that is truly global. we have a lot of technology packed in small package. that is the differentiator. this is a standalone device not connected to any other companion device. this is something that is truly standalone and is network connected. that has been the biggest challenge. ed: openai and sam will work on an ai smart device. you have the underpinnings of the ai technology. how will you work around that and remain unique or competitive? bethany: what we are building is a true personal computer.

we have proprietary ai and we have models for openai and other models. that will be continuing to grow over time. we are excited to see more excitement in this space. that means we are heading toward a world where ambient commute will be part of our day-to-day life. caroline: we are not dominated by our screen. how did you build a supply chain into this? where are you managing to get this built? bethany: it was incredibly challenging building a company starting in 2019, building to the pandemic. we have some incredible partners across the globe that have been part of this journey. humane is a small company but we have partnered with incredible groups of people that allow us to have the ability to manufacture in a way that will be able to live up to the demand.

ed: are there plans for more affordable versions of this for markets like china or other markets? bethany: it was our intent from early on to make it as approachable as possible. for the technology you are getting, we set a high bar for ourselves in terms of pricing it at a level we think is approachable and accessible. that is something we set from day one. we worked really hard at that. there will always be improvements over time in terms of driving down cost. that will always be something that is important to us. how can we make this as accessible by as many people as possible. ed: thank you for joining us. bethany: thank you for having me. i really appreciate it. caroline: that does it for this edition of "bloomberg technology ." ed: such a massive ceo --

massive show. so pop -- so many ceos. we have the podcast. this is "bloomberg technology." ♪ tment research. introducing j.p. morgan personal advisors. hey david. connect with an advisor to create your personalized plan. let's find the right investments for your goals okay, great. j.p. morgan wealth management.

matt: welcome to "bloomberg markets." let's get a check of where the markets stand. we are gaining on the s&p 500. if we close on the green today, it will be the longest streak of consecutive days of gains we have seen in two decades. true superlative, the s&p at 43 point -- 4385.