Of crypto and we speak to the ceo of the scanning cryptocurrency project world coin. Nasdaq 100, very tech heavy index, add session lows, down more than 2 . We had hot labor market data, the treasure issuing debt, that is weighing on things and earnings story at the center, you think about semiconductors in particular, the stoxx or philadelphia index underperforming, down 4 , double the decline of index, the biggest drag amd. We will get to that in the second. U. S. 10 year yield above 4 and bitcoin moving back above 29 thousand u. S. Dollars, the token we will focus on crypto halfway through the show with sonali basak. The earning story, two names in particular, to start with amd, it beat on the top expectations in the quarter gone, sides of recovery in the pc market, a longterm projection about the Market Opportunity for them in the context of ai and Ai Accelerators. I will be joined later in the show to go through the numbers and talk where amc sits in the ecosystem. Then pinterest, the projection is showing it is not having the same fortune in the ad space that some of its peers are. Why . Why is it not doing as well as the likes of meta . What is it about the platform that is not resonating in some of the other ad based social platforms . Joining us is an analyst, senior managing director. Mark has an outperform rating on pinterest with a 45 price tag it. Target. Good morning. What is the story of pinterest . Its a story you like. Market it is when we upgraded, not so much for the but quarter but the fundamental inflection point. That requires people at market to rebound and recover. I think the truth from earnings season is it really has not done that. Meta had phenomenally good results in terms of its September Quarter outlook. I think that is mostly Company Specific factors. It has a bunch of product cycles at the same time and they have the easiest comps as they were the most dramatically impacted by the apple products a year ago. There is a generous case where the other names are seeing modest improvement, google, pinterest, second especially secondtier platforms. Additional declining on a negative base to begin with, a baster lining last year. Pinterest, we we need it is tbd. We think eventually we will get this recovery in the ad market and then we see a lot of initiatives at pinterest starting to show off show up in terms of accelerating user growth, solid growth and engagement. We need the advertisers to start clicking in and i think this partnership they are rolling out with amazon in the back half of the year will block the advertiser interest. That is why we are long and like pinterest. Ed sales in the corridor gone 6 to 708 million for the period ending june 30, above street expectations. If you compare with meta, meta deliver doubledigit percentage growth. One part of metas story was ai driven recommendations and that seemed to boost the ad side of the equation as well. What tools does pinterest have from a Technology Perspective to drive growth . Both at the user level and top line . Mark they are applying ai to figure out better which content to put in front of their users, to help advertisers better target ads and soon to create creative, but you step back, meta and google, the biggest ad platforms, will have structural advantages when it comes to ai and particularly meta has been aggressive and rightly so and smartly so in terms of putting a lot of money on resources and resources on using Machine Learning and ai over the last couple years and generative ai to help marketers find the right audience, monetize optimize their campaigns, and do the best targeting and tracking and measurement of those campaigns, then also very soon to start creating ads and a be testing them a massive scale which they could not do before. If you really want to see a winner in the application of generative ai to advertised models, it is probably meta and over for stan probably google too. The other players who also benefit i think just not nearly to the extent or largescale there as well. Ed the ceo has been there for a year, what is your assessment or scorecard of mark his leadership . Mark he implemented a series of changes to try to get to regrow the user base and raise engagement. It looks to me he gets a b plus, a minus for doing that since he has joined the company he started to get accelerating user growth about 450 million in the years it is growing, subtly solidly 7 . That is good growth for a base of that good growth for that base. Then you have metrics theyre talking about, sessions, saves, those are all growing faster than users. It is a big be plus or a minus. It is tbd, on the advertiser side. There are numbers he has thrown out about small percentage of advertisers who adopted the tools and have 30 growth year over year. I want to know if that will expand and cover half of the pinterest advertiser base and whether he can really get new types of advertisers onto the platform. That is what were watching for and it will be simple, it will show up in numbers and we wont just have Revenue Growth of 6 , 7 yearoveryear, it should get chunky and go 15 , 20 , that would be the real test to improve whether he is succeeding in terms of getting advertisers, to unlocking advertisers spend. Ed i know it has been 36 hours since uber posted its numbers but i wanted to get your take, a milestone that surprised profitability but the market seemed to sell shares on the longerterm growth concerns, how they continue growing i guess at the brighter level but the future of this business beyond its legacy mark. Legacy, mark. Mark i think you set it up right, i would just layer in one other thing, as we have gone through earnings season, its a high bar quarter. That was not the case the last two quarters. Beaten down last year in terms of estimates and multiple d ratings and this year you have had a recovery, a small recovery and recoveries. The bar is higher. Even look at meta, which i would consider the Monster Company report of the quarter. The Forward Guidance was materially better than even the bulls thought possible and yet that stock is barely holding onto the gains, 3 of 4 gains. It is a tough far this quarter and uber put up a good quarter, expectations were high, the revenue came in light. That is mostly due to accounting change but there is little question mark. The stock had a major year today rally and i think there are technical factors in there but that aside, for some names, this quarter will not be a gap of quarter for good numbers, it will be kind of a consolidation quarter and companies will be flat or down midsingle digit percent, then we wait and see if the fundamentals continue the improvement in h2 and h one. If that happens, especially for add names and retail names like amazon, stocks will go higher but this will be a tough quarter for any you had less quarter a couple of these names traded up does will double digit percent. That is much harder this quarter. I think the set up tougher. Ed thursday does bring amazon. What are you expecting from amazon . Mark three things that matter here, whether the operating margins on the Retail Business continue to recover. I think we will see that, whether the Online Retail growth rates stable and maybe start to accelerate based on recent positive data points, i think we will see that. It is less certain to me. The most import and is whether a ws reexcel or a way we phrase it, its good to hear the cfo use the a word, acceleration. If it accelerates, you will see falter on the stock. I think the stock and go higher but i dont know if they would be able to see that. Whether they see signs of that in September Quarters is an unknown for everybody. That will be the most important thing we glean from that earnings call. Ed mark mahaney, thank you for your time. I think we should stick with amazon, amazon launching the biggest overhaul of its grocery business, since it acquired whole foods markets six years ago. For more on the details, we bring matt day who has been writing about this. What i enjoyed about your article is you put amazon into context of the entire landscape for groceries in this country but what does the reset look like . The reset looks like pushed together all the disjointed parts of growth in business. They bought whole foods several years ago, amazon has its own amazon fresh delivery business, opened a few dozen stores, trying to make that sing better together. If you go online and try to shop for groceries on amazon, you might make three separate purchases for three separate of liveries and they will funnel that into one single basket or cart and eventually hoping to starry expanding the brandnew Amazon Fresh Grocery chain they started during the pandemic. Ed what is andy jassys attitude towards the grocery business . You reported he looked at other units like prime video in simple lets get this under control. What we know about how he views the grocery opportunity . Matt since jeff bezos first nudged amazon toward grocery 15 to 20 years ago, the rest has been the kind of the same for amazon. Grocery shops, most frequent purchase that people make and we need to be there if we are going to be a large, glowstruggling retailer. Amazon has a tight business but we heard andy jassy make similar comments. We think we have something to say there and are committed for the long term. He did make a pretty big tap on the brakes about this time a year ago when they stopped expanding. Amazon fresh stores taking a hard look at whether the grocery strategy was the right one. They think they are there but i guess we will see. Ed matt day, check out his peace in the businessweek about the big Amazon Grocery reset. Coming up, amd topping quarter estimates and touting inroads into artificial intelligence. We will dive into results next. What is going on here . Aftermarket, 12 to 18 hours ago, shares were up and now were definitely well in session lows. We discussed. This is bloomberg. Discuss. This is bloomberg. The chase ink business premier card is made for people like sam, who make everyday products, designed smarter. Like a smart coffee grinder, that orders fresh beans for you. Oh, genius for more breakthroughs like that i need a breakthrough card. Like ours with 2. 5 cash back on purchases of 5,000 or more. Plus unlimited 2 cash back on all other purchases. And with greater spending potential, sam can keep making smart ideas a brilliant reality the ink business premier card from chase for business. Make more of whats yours. Ed theme d reporting betterthanexpected results with optimism by the chipmakers, the ceo saying while we are in the early days, with the new era of ai it is clear it represents a multibilliondollar Growth Opportunity for amd. Joining us now is bloomberg intelligences could jensen bonnie. The opportunity is 150 million by 2020 seven, talking specifically about Ai Accelerators. Stark, at session lows, what do we not like about what amd said . I think the reaction is due to any quantifiable metrics lack of quantifiable metrics. Theres no doubt there is positive customer interest, positive customer feedback, but these processes take a long time. You go from sampling to customers, they need to qualify, and after that there is a couple quarters for the ramp. I think due to the lack of into quantifiable metrics on the magnitude and timing of the revenue upside from this business for next year. Ed the way amd framed it is the customer engagements, engagements with seven acts in the quarter gone but that does not equate to booking revenue, i guess that is your point. Kunjan exactly, yes. Ed talk about where amd is in its lifecycle. On the show, we always talk about the en h1 100s but that is just relevant gpos that have been in the market for a long time. Has amd got anything in the wild customers has their hands on . Kunjan the mi 300 x will be a specific aig p which is supposed to sample or ramp. Nvidia is deploying the secondgeneration gpus already but amd is late to this game. Ed the story for amd is Ai Accelerators. What is an Ai Accelerator . Kunjan i think most people are aware of the cpu, the generalpurpose compute, designed to process a lot of different tasks and do it well but an accelerator is a chip specifically designed to vastly process one specific type of task, hence the name accelerator because it accelerates the processing of one specific type of task. A gpu is a type of accelerator, other types are chips like ones from broadcom, the tpu google uses is one. When there is a chip designed to only compute for specific task, or do it fast, that is what we call an accelerator. Ed away from the excitement of ai, this earnings season has been about the calling about the core businesses. What did you learn about amds health in pcn data center . Kunjan similar to intel, the results around pc was really good. It shows the pc market bottom is turning and on its way to recovery and the second half will be a tailwind. And it comes to data center, we see it both from intel that the Enterprise Market is a mixed environment. There is still inventory the needs to be cleared and demand is not a strong. On the side, on the data center for the cloud, into this year, we know the spend is lower than what we expected at the end of 2022 and they are heavily spending in their a cloud portion which forces them to optimize in the nona icloud portion and that is where these players have the big market and amd and intel are feeling the burn. Ed bloomberg intelligences kunjan sobhani. Check out his outlook on the bloomberg terminal. Softbank is also feeling optimistic about ai. The companys Semiconductor Unit arm is targeting an ipo valued between 60 billion and 70 billion. According to sources, the company could go public as soon as september. Earlier this year, bankers pinch devaluation trading from 30 billion to 70 billion but the ceo and one from softbank considered the lower end of the range too low. Its debut was surpassed most in the chip industry. Coming up, sticking with ai, impacting the workforce, how some u. S. States are to regulate the new tech. This is bloomberg. Fabulous surroundings. But everyones looking at their phones for Financial Insights from merrill. Is he hailing a ride to the concert hall . No. Hes making sure his portfolio and retirement plans work in harmony. They want to adopt a child and build a new home. So theyre talking numbers with their merrill adviser. Shes not researching her next role. Shes learning how to handle market ups and downs without the drama. Personalized advice so impressive your money never stops working for you with merrill. A bank of america company. And your store was also the first time you realized. Well, we can do anything. Cheesecake cookies . The chookie manage all your sales from one place with a partner that always puts you first. we did it start today at godaddy. Com 76 of 23andme Health Customers surveyed reported taking healthier actions. we did it because they know health isnt just a future state. Health happens now. Start your dnapowered Health Journey today with personalized insights from 23andme. Ed time now for work shifting where we look at the changing landscape of the labor market amid advances in technology. Trying to sort winners from losers as ai spreads through the economy. The stock market is and it goes way beyond nvidia and microsoft. A trio of researchers from california universities say companies with workforces right for ai are beating the market. The study tied to generative aim firm values depict a market already making broad judgments about how automation will impact things i cash flow and stock valuation as Intelligent Systems submit themselves as tools of production. Sticking with ai, u. S. States are seeking to regulate ai with new legislation. North dakotas airelated measures were among more than one dozen not past legislatures across the u. S. , covering matters that range from road maintenance to examining potential Racial Discrimination by automated systems. Companies that contract social Media Influencers are demanding those influencers by by insurance. They want the personalities to take a policies to protect the brands they are promoting before they can expect any more deals. Here with all of the details, alex barinka in l. A. Why does a semifamous influencer need any insurance policy . What is the argument . Alex its usually these are brands who are contracting these influencers. When brands go to influencers and ask them to make content either for their own channels or post on social media, theres always been this inherent level of risk. You are turning over your brand voice to these influencers, these internet individuals, and now it seems like they are taking it a step further. As influencers have become a bigger part of their marketing spend, it seems brands are looking to cap risk by asking these creators to take out these insurance policies that would protect them from doing things like using music that is not licensed for commercial use or as i see here in l. A. Almost every day, taking pictures in front of a painted wall of a building and that building image happened to be copywritten. Brands are looking to cap their risk but it is an interesting move for creators. A lot of which are not making so much money in every year. Ed is the threat of legal action real . Have we seen lawsuits against people trying to make their name online . Alex we have. There have been a couple key cases mentioned by our colleague in good reporting. One is energy, an energy drink that if you spend any time on tiktok, you see creators big and small promoting it. Theres a lawsuit that alleged creators promoting this was using music on tiktok that was not sanctioned for commercial use. Not every sound or song on tiktok are you able to use in Something Like an ad. There is also a suit in london for a beauty brand were a creator took a picture in front of a piece of wall art that was copywritten. These things are beginning to come up but the economics are really interesting. You could be a creator looking to get paid 4000 for one post but the brand has been asking you to take out a 2 million insurance policy basically to indemnify them and ask you to spend 2000 a year to keep that policy viable so quite interesting economics here asked of these