Year of running the electric truck maker. And why and and why a familiar face is taking the wheel. Abbas on an amazon reporting apple and amazon reporting quarterly earnings, its market cap now below 3 trillion u. S. Dollars. A lost that market cap around. The other end of the scale, amazon up 11 on an intraday basis on track for its biggest jump since november, a beat across the board. We will dive into the earnings of both companies but i want to start with apple because this is a really big change of sure. Softness for iphone in the fiscal Third Quarter gone, over new rev overall revenue beat expectations but it fell 1 yearoveryear. That makes it the third consecutive quarter that apple is seeing a year on year sales decline. You see that on the far left inside of the chart. That is the biggest run of the kleins on sales dropped since 2016 but you go back 20 years, all the way over here. If we get another year on your Quarterly Sales decline for a fourth consecutive quarter, that is the biggest rate of sales drops apple has had in more than two decades. The story here is about executives talking iphone acceleration into the fiscal fourthquarter and the in september, Services Continue to be strong. Double digit declines in wearables and ipad. The story, is it technology, a lack of up rates, or new generation forms . Are we waiting for iphone 15 . Lets get to apple and bring in the principal analyst of forrester. Tim cook is talking about weakness in the Smartphone Market in the u. S. But strength in india and china. What were the main stories out of this quarters earnings . Specific to the smartphone, the main stories are is that apple did well in china, they did well in mid arc its traditionally dominated by android, and they had more a Record Number for the people who switched from android to ios. The challenge with the Smartphone Market is as you said on a it is a mature market. When you look at u. S. Online adults, 95 on a smartphone. The devices are very expensive. The devices are amazing. The upgrade cycles are slower, it is not like 10 years ago where we all bought a new phone every two years. These phones are serving consumers and pcs for three to five years at a time so it is going to be tough i dont think it is a surprise but it will be like this because the market is mature, unless you find new customers and break into new markets. Ed i would like to do some mental arithmetic with you, are you open to doing that with me . Julie i will try. Ed apple says it has an installed base of 2 billion 2 billion devices globally and had one paid some one billion paid subscribers now. Really there is a big pocket of apple device users around the world that are not paying for an apple service, they are using what is available for free. Are you able to work out the path forward, how apple and how many of those users apple can convert to paying for a service . Julie i think one of the tricks of the numbers is there are couple things we know about apple users, their relatively affluent compared to android owners and the second is they own multiple devices. It would not be uncommon in markets like the United States for someone to own a laptop, tablet, smartphone, and smartwatch. We had 2 billion active devices, that does not mean we have 2 billion owners. We have fewer owners because each person owns multiple devices. But the strength of the story i think comes back to the arguments you are making earlier about the services. The more devices i own, the more valuable the Services Become to me because they work across all of my devices. So i can continue down that path or we can shift. The sure the services story is a strong one and they have been laying the groundwork for years and years for that Services Revenue continued two to can revenue to continue to build. They have almost all of the United States paying for video. Julie lets be constructive ed lets be constructive and say what was constructive for you based on the call or what they put in earnings . Julie what was exciting was the Services Number was up and that speaks to the power of the ecosystem. The second thing exciting for me is looking at the wearables market. You talked about in your opening that the smartphone is the device, it is the device that apple counts on and we have all been talking about will there be something that comes after the smartphone and replaces it. We have not seen that yet. What we are looking at, 40 million in the wearables and home market, 35 of u. S. Online adults only smartwatch. It has outpaced fitness wearables. That could come up in time. I think that part of it is interesting. And apple continues to lay the groundwork here. Weve always said a smartwatch will have more utility and become more valuable when it is my payment mechanism, when it is my help mechanism, my identity mechanism, and when we look at the states trying to move my drivers license and insurance onto the apple wally, that translates to the watch and things will be more valuable. That is the second thing i would get at. Ed i just want to jump in really quick. Im looking at these beautiful images of vision pro and it takes me back to being exactly, and you say it is amazing but did we learn . Julie i have had them on and you are like wow, that is something. Ed and then you are one of the small group then. Did you hear anything last night that gives you a better sense of how wide the rollout of this vision pro will be globally . Julie no. This will be tough early on because what ive heard early on, they are working through getting the product ready for market and carrying nearly a 3500 ice point. That may be a midprice for computer but not midprice for a consumer to buy. I think we will be in a wait and see situation in 2024. The technology impresses an ecosystem impresses. Whether the rollout will be right, that is a bit of a wait and see. Ed julie ask for us from forrester, thank you very much. The other big earnings story is amazon joining us is melissa burdick, a president and cofounder. Amazon is the opposite, beating across the board, investors cheering those results. What i found interesting is the core business. Amazon. Com is seeing growth, but they are also Getting Better at making money in the more profitable areas of the ecommerce business, namely advertising and selling services to those independent merchants. What was your sort of analysis of that part of the business . They had their biggest earnings beat since q4 2020 and every single area, they did a good job. The two drivers, a ws and adds, were up. Advertising, this business was over 10. 6 billion. We have a benchmark report at the company where we look at quarter over quarter on the return on advertising spend and that was really strong at this quarter. They have Great Results for advertisers. With ads, they also have new generative ai capabilities and also they have amazon marketing cloud and amazon stream which offers a lot of great data analytics, realtime optimization, and that has helped fuel advertising spending this quarter. Ed lets zero in on aws because at the end of the day, it is the majority of operating income. What did you learn about the rest of the year . How aws will continue to grow, because if we go back to microsoft a week ago, we were a bit concerned about the broad market. Melissa all the eyes are on aws this quarter and they were up 12 , which les courter they were 16 so a declining increase per quarter but i think the biggest challenge has been companies have in cutting and aws has been cut, even our own company has looking is looking stringently on how we operate most efficiently. Aws is the target but andy jassy spent a lot of time on the investor call yesterday talking about how aws stabilized. Companies are increasing their workflows and he also spent a lot of time about the generative ai capabilities that they are launching, could whisper, bedrock, and those surrounding. Ed i just one out jump in just want to jump in on the point, andy jassy described as amazon taking the first few steps in a marathon. I think we still have the question, how does amazon make money . On the basically enterprise and cloudfocused ai offering. Do you have an answer to that . Melissa its a tough one. Generative ai is a big investment from amazon so they will have to invest a lot of money and resources to build that out. The idea is they can grab market share and have more of an attractive offering because their product is so amazing, more efficient, helps customers use it. All eyes are on this and they were 26 and 28 les corder, amazon of 12 in cloud but those are on smaller bases. I think that is deafly something to look at because others, is the market turning pro, what is the reaction . Ed melissa, quickly, what do you give andy jassy on his Quarterly Report card, a, b, or c . Melissa he has done an a. All his costcutting measures the last two years, he has deficiency. The warehouse opportunity moved from national to regionalized operation there that was huge and they are getting segments to cut ash shipment star customers faster. That has been a huge and permit. I think he has done a great job and to this quarter is a result of the last two years. Ed melissa murdock, pacvue president , think you so much. Coming up, sports and streaming, what one internet tv providers and strong earnings means for the future of streaming sports on platforms. We will talk to the ceo next. Another big story, we are watching shares of nikola down 12 . Steve gursky who led this back and took them public, he has been chairman since september 2020 and is in the ceo job. His predecessor is out for personal reasons. This is bloomberg. upbeat music woah. Constant Contact delivers the Marketing Tools your Small Business needs to keep up, excel, and grow. Constant contact. Helping the small stand tall. Ed going viral, everyone on social is talking about the fifa womens world cup, searches for the term and trending on google as it heats into the knockout stages. Fierce rivals, sweden, and the United States will meet once again in the round of 16. This time, the stakes are higher. The u. S. Is vying for a third second of world cup but we are nearly eliminated by portugal, and sweden won all of their group matches. They have scored outscored opponents angles to one. Speaking games, fumo tv exceeded north american guidance in the Second Quarter. Achieving 305 Million Dollars of revenue, a 40 per 41 year on year. The tv provider sports first livestreaming model making progress toward profitability in 2025. To tell us about it fumo tvs ceo. I find fumo tv so interesting. People call you a streaming platform but you are essentially a Software Platform to garner and get other peoples streams and content. What was the garner for you in performance . The company had a clean print. We, as you said, grew revenues up over the percent, grew subscribers over 20 , increased average revenue per user by 13 , ad revenue increased by about 5 yearoveryear, so across the board on the i think we have operated well and we have been measurable as it relates to our cost structure. As you can see from our bottom line, we have improved by about 40 million. Everything the team has been focused on the last six months his certainly coming to fruition. Ed lets talk about the fifa womens world cup, how is that driving things for you right now . David as you know, our dna is soccer and we launched it as a soccer platform. Womens world cup is performing well. We are starting to see increasing traction, doubledigit traction, as the tournament progresses and you know we are relatively early in the tournament so we are looking forward to continuing to drive viewership for the womens world cup and of course the u. S. Womens national team. Ed we discussed here on Bloomberg Technology frankly like turmoil in sports tv, the industry faces a lot of longterm questions on profitability. But also cultural, technological questions. Outline for me how you see people consuming sports in the future. The platforms, the devices. David i think you hit the nail on the head. It is a very complicated industry with Media Companies and physical platforms, sticks like roku and amazon, then you have Companies Like fubo which are softwarebased platform agnostic that allow people to move from device to device in any room in the house seamlessly, giving them access to their favorite teams and other content through one single app. I think we are positioned for growth in space where you are going to see i would say significant competition from the likes of connected tv players that you are familiar with like amazon and roku but at the same time you see the increase in competition from manufacturers like sales and visio. We think we will continue to increase the leverage we have as we are driving significant eyeballs across all of these platforms, and we are aggregating content for consumers and making sure they are able to remove a lot of the friction and fragmentation they have to deal with on a daily basis. Ed to what extent does cable, Regional Sports networks die . David as you know, we have differentiated versus other platforms in the United States due to i would say our local footprint. We believe there is a privacy in sports and more so even in local sports, which has been a strong driver of viewership. But we have a great relationship with dimon sports which controls the majority of the Regional Sports and at the same time we continue to build solid relationships with particularly with Major League Baseball given we are in season and have also made a number of marketing announcements with teams across basketball and baseball to continue to drive more awareness for their video product on our platform. At the moment, we are confident in both those directions. David the virtual cable bundle is not working for anyone else, it is for you. What is your secret . David i always like to say it comes down to product. I think we do a good job surfacing servicing a lot of the content that people like. We have a premium User Experience and, historically, we have been known for spending a lot of time developing innovative features and we have been first to market on things like 4k and multiview which is something that other Services Including apple has launched. I think it was weeks ago they began to roll that out but we are focused on video ai features and being able to really tap into the most exciting moments in a personalized way, a discrete fashion for each of our users. That is sort of the area where we will continue to focus. Ed fubotv ceo david gendler, good to catch up. The earnings coverage continues, this time at the shares of session highs, 115. 1 million booked in the quarter, above sales expectations, but we had choppy trading in the session area this is bloomberg. If you have this. And you get this. You could end up with this. Unexpected outofpocket costs. 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Tom airbnb is not a cheap stock, it has a high valuation and with high valuation comes hi expect asian for earnings, but i think they did just enough this earnings print to get people excited still about story, maybe tone down some of the chatter about the inevitable normalization of the travel landscape and people going back to Traditional Hotels and sort of more traditional travel patterns and may be less of the Vacation Rental type stuff. On top of that, they talked about interesting product opportunities and growth unlocks if you will for 2020 for which i think the market is responding well to. Ed which of those caught your eye the most . Tom we have been doing a lot of work following the experiences space, the tourism, attractions a space so it is easy to into that as an exciting category. What is interesting about what airbnb calls experience is it is this enablement of a new product and in a lot of ways it is similar to what airbnb did with