Computer networking equipment making headway in ai. And in Security Technology grid we break down ciscos results. Meanwhile, raising 20 billion of market value in one day alone after posting the slowest Revenue Growth since the europeans payment shines ipo. We will bring the details, but were talking about an erosion grid once again, sentiment on the downside on the nasdaq. These arent enormous moves. But the volume a low will see some nervousness around what is happening in the bond market. Significant selloff. A rate at which we are inclining and yield spread we are seeing another six basis points added on the tenure. This will come thick and fast. U. K. Yields are upper us across the world. A movement to bonds that will see Interest Rates continuing to have to remain at a sustained high level. Interesting that we got a reprieve in china. China is throwing everything it can from a government perspective at stabilizing the economy. We are worried about the property sectors in the economic slowdown. 1. 1 thereabouts after a significant selloff and what happens with the big chinese names trading here in the u. S. This also falling off a cliff. Lets have a look at bitcoin. Its a volatile asset class. We are taking a dive at midday. 2. 5 mom. The bond yields are moving higher. We are getting out of risk assets in general, and it is taking an impact, ed. But we are falling off a cliff. Straight to europe. This is a name and big tech that we do talk about. The fintech player but the story has higher Interest Rates weighing on its ability to earn, but also price competition here in north america. We go toward teaming euro. We will have a Company Perspective from amsterdam, and understand the Market Reaction from london later in the day. This is something we need to dig into because neither of us saw this earnings season, this name coming. Biggest drop on record. Here in the u. S. , two names we are watching in the earnings context. The first is cisco. The ai story grid cisco benefits booking 500 of sales already on its ai products. Growth is slowing, but the street seems to like the forecast. Details from our editors the next block. Walmart is down 1. 6 percent. Second consecutive quarter were the outlook has been raise, but heres the one for me. Ecommerce sales jumped 24 . This is an ecommerce story. Must get more details from brendan case who covers walmart for us out of dallas. Run us through the top line of the earnings . The big push for walmart is that they easily surpassed wall street estimates for the Second Quarter. A little bit light on the Third Quarter forecast, so i think that is why shares are down and theres been so much enthusiasm about walmart this year. Anything less than perfect is going to hurt shares. Dropping down to ecommerce, that was a real bright spot. Up 24 , thats a Second Straight Quarter of really strong growth in that regard. Definitely a big point of pride for walmart. Talk to us about what they are doing right, here. Are they getting a market share, ordered they climb more ecommerce bucks off of their own customer already, or are they peeling away from amazon . There are couple Different Things to unpack there. One of them is something that doesnt have anything to do with placing orders for growth rates. It is advertising which is included in their ecommerce business. Walmart has a big multibilliondollar advertising business that in all respects except for one is big and successful, one way in which it isnt is that it still dramatically trails amazon. Boosting that business is a big priority for walmart. They are doing it, but they still have a long way to go. Then, if you switch to the shopper side, what you are seeing. A couple of interesting trends there. Strong growth in driveup. People going to the store to pick up online orders. But you also see growth which actually surpasses driveup this quarter in liveries . More customers are tapping into the delivery options at walmart. You and i wrote a story almost a year ago together about how walmart does have nearly as many shelf pickers for online orders as it does people working in physical stores. Do we get any sense from the call about structure, how walmart is addressing is is is for this kind of surgeon ecommerce demand that youve outlined. A 24 jump in the quarter. They give a bit of an update on their supply chain. What they are trying to do is theyve got a lot more automation going into their big Distribution Centers but the other thing they are doing is they are trying to build out what they call Fulfillment Centers which are inside stores but not visible to customers, and what they are designed to do is get a lot of the product pictures out of the aisles and how to dedicate a of the store that is designed to send stuff out to customers. What you are going to see in the coming years is as that ramps up, there will be a bigger and bigger capability to do that the livery. It looks based on the Second Quarter results like there is a lot of demand for that, but time will tell. Great analysis parade we thank you so much. From bloomberg, we are digging into the advertising flare that brendan was outlining their, and ultimately, how walmart is digging up its prowess. Alastair mclean, from the gige metrics is leading the optimization platform for marketplace brands. 10 million in total ad sales optimize, and i know you know walmart intimately. What is really working for them. How are they managing to lure over new brands . Brilliant results. Walmart is certainly getting shares. We are using ai to optimize the largest share of brands selling on walmart. Com. Weve got millions of dollars of data, so we knew the results would be good. The marketplace seller volume is accelerating. There is a selection of thousands of brands and they are turning into a technological powerhouse. They are investing in api, building on tech to enable ai Companies Just like ours to go even faster. That is a big part of it. The technology. We kick off the show right. Bloomberg technology, we Start Talking about walmart and the audience is going what are you talking about . But ecommerce advertising, and the analysis to broaden ai. Alastair, what is your read on how competent walmart is in those fields relative to amazon . In the context of ads and ai, weve been talking about amazon for a while. Walmart is a newer conversation. Well, they are doing very well. They are investing a ton. Self set the land is the ceo, and walmart connect segment is crating the and add business which is really growing leaps and bounds in terms of the technology, and turns of the investment, and they are really moving very quickly, very very quickly. It is interesting. Carrying consumers in this equation, why ecommerce is jumping. 24 is a big move. And the read on data there, is to whether some of the underlying thoughts on whether the consumer is resilient at this moment, whether walmart has all the right price points for any type of consumer because all of us are trying to read these tea leaves. Yes, the numbers look great, but target and walmart both sound pretty conservative, and indeed a little cautious about the consumer right now. I think the most interesting thing about the data we see is the change in the walmart consumer. I think that is the stigma that maybe walmart is all about older shoppers or traditional shoppers, but the growth in the modern younger consumer that is opening up, while it is one of the fastestgrowing apps on the mobile side of things, there is a really big play around omnichannel. The fact that walmart. Com can really do things that other marketplaces cannot is really powerful, they can connect the dots between online and offline. Thats what every brand once. The omnichannel plan. Remind us how International Walmart is. For me, that is purely an american name, but no. Its india. Its mexico. We are seeing strength. As u. K. Voices, we knew it for having had asked her for one point. Actually. Theres of course the flow cart asset in india. What is interesting from an International Perspective is the focus on recruiting and acquiring those marketplace sellers from overseas. To sell into walmart. Com. That was one of the biggest drivers of amazons in his marketplace, a flywheel of sellers, so we saw walmart to a lot globally. Attracting brands from overseas. Very similar to the amazon playbook. It is certainly working. If you are an advertiser, why is walmart an attractive offer relative to any other ecommerce name. I can tell you the data we have is the return is the primary metric that advertisers used to determine the roi. The results are walmart and the walmart connect platform are contested. It is very profitable to sell and advertise on wilmer. Com, and really, that is what is attracting more sellers coming over. It is less competitive, more of a green field. And as i said, the roi, the row asked, the return on spend is really best in class. We expect that to continue. New names to the show. Thank you for joining us here on Bloomberg Technology prince speaking of walmart, chinas internet regulator is reaching out to foreign funds, including the retail giant. They plan to discuss ways to navigate beijings Data Security rules in an effort to reassure multinationals worried about the ability to operate in china. Under these latest regulations. Coming up, the largest maker of can compute networking equipment is making headway and ai, but also Security Technology. We will break down the results next. Those shares are up 4 . A quick look at palantir shares print down pretty sharply. 7 . Not any headlines crossing the bloomberg terminal, but i would say that we have been on a sharp trajectory in recent weeks. From being heavily overbought. Its come through the 58 movie average for the technical chart fence. This is Bloomberg Technology. This is Bloomberg Technology. You got this. Lets go. Gobble gobble. Ive seen bigger legs on a turkey rude. Who are you . Im an investor in a fund that helps advance innovative sports tech like this Smart Fitness mirror. Im also mr. Leg day. 1989 anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq100 innovations. I go through a lot of pants. Before investing carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com. woah. Constant Contact delivers the Marketing Tools your Small Business needs to keep up, excel, and grow. Constant contact. Helping the small stand tall. Earnings are thinking fast. Shares are moving higher after delivering to a resiliency, the demand of chuck robbins, briley have a nice ai potential. Saying, this is a huge opportunity for cisco. We are these are focused on winning in the space. Lets get more on the results. Vick is with us. Nick, how do they profit. How do they capitalize on this ai moment . Is still pretty early days. They did. 25 hundred Million Dollars in sales from ai products. I think were talking about stuff that helps speed through the process. Training largely which models, regenerative ai, it is just that weve been focused a lot on the chips people need to run that from nvidia and others. Obviously, the network is part of that equation as well. We expect that to be a big player in the space. Lets geek out for a moment with ed. You are a man who gets excited about that. The logic is really clear. With all of the hyper scaling that is provided, there is more networking gears, and there are no worries. What is interesting is doesnt have much to do they i. Theyre coming out of a. Where they are playing catchup to the pandemic. Yes. If you look at the Sales Forecast itself, it looks pretty bad. It has a terrible comparison with the last year the year that just ended. Sales surged, living percent. And now, they are only going to growing 2 or so. It is obviously a big comedown, but the executives have an like this. You knew this was going to happen, and if you look at the growth in a more longterm perspective, is not a huge issue. We are just entering the First Quarter of fiscal 2024. We just finished fiscal 2023, to a point. Chuck robbins talked about recurring revenue. Just explain the recurring revenue and what cisco is doing to make money elsewhere. So, traditionally, this is a massive networking gear company. They could do no wrong in the old days of Silicon Valley. Everyone needed big hardware, expensive hardware. The problem is that there tended to be they tended to be lumpy. There were sales one quarter and less so the next prayer theyre trying to get to a substantial model. Theyre paying a certain amount each quarter, and its more reliable. Where are analysts on the view of cisco . Where is sentiment more broadly on this particular name . What is the run like . I think people have been pretty excited about the last year or so. Just, optimistic that this is if you look at the yearoveryear, or the past five years or so, its been a little bit inconsistent in general terms of growth. I think theyve obviously cisco had a moment where they were able to turn the engines on full throttle, and i think people are more optimistic than might be expected about the coming year, even though sales are decelerating. The final component to worry about is security. It is sort of a standalone market, really quick. What do they say about security . Wax it is one of those there are three things they called out. Ai, data center, security, and obviously those are three huge buzzy things that people want to see you growing in, and they said they made progress in all of them. I dont know if they were quite us pacific on security as to how much progress lately, but it is definitely a key thing for them. Great to catch up with you. Thank you. One of the shining lights today in terms of earnings. All things cisco. Meanwhile, all things global spark smartphone. Its heading for its worst year in a decade. We will discuss why, next. Apple is a big talk on the broader nasdaq read nasdaq 100. Really pulling down from the point perspective grid disappointing Earnings Report going back a week or so, but the pressure is offer this company to deliver for the iphone. Plenty of gc content on the bloomberg to have about six weeks time, eyeing up tech giant. Having a Third Straight quarter of declining sales. Plus, sex expectations of their. Historical data. We also went to tell you what is not rising. Well see whats happening in the world of crypto. Want to shine a light just before the show. We took a leg lower on the world the, this is more about Market Sentiment then full markets selling off yields and driving hybrid the dollar can focus. This is bloomberg. Thanks to avalara, we can calculate sales tax automatically. Avalarahhhhhh what if tax rates change . Ahhhhhh filing sales tax returns . Ahhhhhh business license guidance . Ahhhhhh crossborder sales . Ahhhhhh item classification . Ahhhhhh does it connect with acc. . Ahhhhhh ahhhhhh ahhhhhh will send a daily dose of talking tech. Global smartphone shipments are headed for their worst year in over a decade. Shipments expected to drop 6 yearoveryear. According to the latest counterpoint research, and estimate is due to a display demand in the u. S. But a deteriorating chinese economy. Plus, the smartphone sales swindled. The top wireless carriers have lost billions in revenue. At t, tmt and verizon have collectively lost nearly 5 billion is over the past 12 months compared to the previous year, it is not just smartphones. The worlds biggest pc maker missed profit estimates for the Second Quarter, underscoring the debt of the global downturn. Lets talk about missing expectations. We are going to pivot away from europe because abby is wiping out more than 13 million, perhaps 20 market values, falling over 30 over 40 on the trading day after missing the first half revenue estimates. For more on the dust payment causes and company, and the competition thats right over here in the united states, we are joined sir jacob. A brilliant conversation to have with the both of you. First and foremost, you cover the company from a real focal point over there in amsterdam. What do you make of these numbers . Why is it such a shock, this focus of growth is there profitability. Right, so i did report earnings for the first half that this estimate is on both revenues and margins. It boasted the slowest net Revenue Growth since it was listed. The company attributed this to a weaker climate with higher Interest Rates and price competition in north america. The thing with adyen is that they continued higher, and they had about 550 employees. That was in the first half, and that has a weight on margins in the first half. Wet spring shares up and talk about this big drop . What does the street say . This is the biggest drop on record. Definitely. When you think about a growth stock like adyen, it is a very moment when three things that are no longer a growth stock. We saw these kinds of things happening with that before the facebook parent when the flagship hit a bump and we saw things happening as well because we saw north american revenue the growth actually have to during the first half, but this is a big issue because we have seen several quarters missed earnings estimates, but this is the first time weve seen this since the ipo missed processing revenue estimates, processing volume estimates, and its not just a mess. Its a mess of 8 . The question is whether the company can revive growth. We know the company has reiterated their nearterm guidance, but there are now some concerns as to whether the company can achieve the growth trajectory anymore, given the competition in the u. S. Well on that for a moment. They have spoken out about this being this hiring and focus on growth whi