Amd disappoints. Caroline we sit down with the ceo of pinterest as revenue surges. Lets check in on these markets. A little bit of nervousness ahead of the fed when jay powell comes, bouncing off of our lows but of course more broadly technology dragged low by those earnings and the read across down by 2. 5 on the stocks. Youll be digging into one of the ultimate names pulling down the key chip index. The 10 year yield catching a bid. Now they are catching a bid because we see the u. S. Treasury upping its supply in the coming quarter but notably we have seen some worrying signs when it comes to economic data. The price paid still on the upside. How much we are seeing a cooling or studying of the economy. Saw some weaker jobs data. Moving whats happening in terms of the individual movers. From a crypto perspective, bitcoin down 4. 3 on the day. 57,000 we currently trade. What are you seeing on the micro . Ed lets talk with start with amd. A big move lower despite upgrading the forecast for sales from 3. 5 million 3. 5 billion to 4 billion braid some industry seeing that hoping for guides we are talking about the mi 300 x which earnings put out to completely gain principally h 200. You see a slowdown in gaming. Amd is a name we used to talk about it because you built your customer rig with their gpu. We will come back to that in a moment. And then amazon actually its kind of a muted response. 2. 3 , strong firstquarter. The story is aws. Annual revenue run rate of 100 million but the devil is in the detail. Just one sentence from the cfo the generative ai revenue run rate in the multiple billions of dollars and that seems to be enough to show that ai is starting to show up. Lets dig into amazons results, the company boosted strongest sales growth in a year. You are on that media call and i think thats the focus here isnt it, its that ai is a real thing that makes real money sort of. The profitability for aws in the quarter was huge. It accounts for less than 20 of all amazon revenue. Two thirds of its profit. The question for the investors is what is the pace of investment going to look like and how are these margins going to look. You get data centers to fuel this boom and theres a little bit of breadcrumbs dropped. About 14 billion in the First Quarter. A low point for the rest of the year. North of 50 billion in data center investment. At least this year. Diminishes support that operating margin wider since they started disclosing what it was in breaking out aws but what we all know amazon from anyway, how is that consumer looking now . The overall revenue guidance is light for the Current Quarter and they said consumers are definitely the average order size is smaller, and so that hurts the margins of the ecommerce business because if you are shipping less expensive things it still costs the same amount to process and ship those items. It is good just not nearly as good as aws was and they are seeing some signs of consumer strength. We will be asking a lot about advertising and of course a partnership with amazon. How is that particular part of this doing . The ad business is still predominantly things you see on the website. There wasnt a lot of clarity about the contribution from the videos that theyve added. Analysts are estimating somewhere in the realm of 5 billion was the last they saw for the year from that business. But it is there wasnt a lot of clarity on exactly what its adding and amazon emphasized we will be lighter on the advertising with programming and television if you watch prime video you will see fewer advertisements. They are moving delicately on that resource. Dont want to put us off of our watching. Spencer all things amazon. We are sticking on these earnings. It was giving a disappointing forecast in particular and a sluggishness when it came to gaming demand. It really seems to be cute everyone focusing on. Because q1 was good. Fundamentally the story impact is that sentimentally it did not beat enough the high lofty Investor Expectations especially for the numbers coming in. The rest of the nonai business was growing some which was weighing heavily so overall at the Company Level the numbers for 24 came down a tad bit. Thats not what you want to see from an ai flying high name . Ed i was trying to unpack what lisa was saying. It seemed in the first instance she was saying supply constraint in other words there is great demand for the Ai Accelerator product they just cant get enough of them. She later said thats not the case. Before your guy doesnt factor in supply constraint. What is the story with demand versus supply, clarify . The demand continues to run higher. Its not just the way people think. So they do the Second Quarter supply is constrained. And theres only so much they can ship on the second half of the year. The second point is theres all these crazy high expectation numbers where people are going in and evaluating how much supply is coming in and multiplying that number based on how many units the and can ship. It does not run on 100 utilization. So its not an equation you can extrapolate. You have crazy high expectations. Even so to be think and gave enough evidence they would take market share from nvidia which is so far ahead in Ai Accelerators . Kunjan they believe show. They have showcased enough engagements at the cloud and the second part is more important because the next wave of capex is going to come from that especially where they have a more competent positioning. Ed check out his research on bloomberg terminal. Lets keep the conversation going with the managing director of global equities. Lets start with amd. Lets set a baseline that expectations were high and we got a raised forecast and it does not seem to be good enough. Precisely. I think your previous guest did an incredible job of outlining. Results were great. They were tremendous, i just think expectations are a little ahead of themselves. Raising gpu guidance to 4 billion, again we are they were closer to or maybe seven. We like it down here. There are other levers to paul. If you are a massive hyper scaler you definitely want to diversify your offerings. You think there should be other people that supply your chips and i think amd fits that bill. Caroline can you go into the other levers they have to pull . Daniel the gaming side was one lackluster area for next quarter but Going Forward this potential for enterprise refresh especially on the back of covid. A lot of companies have old legacy systems they have to replace, they could bode well for them in the second half of 2025. Caroline i want to pivot away from amd but broadly looking at the cloud. Amazon today coming out looking strong when it comes to its ai focus. Is more broadly that the lever you want to see being pulled by andy jassy . Daniel that Conference Call was when the most bullish of listen to really in years may be on the back from two quarters ago. He basically said this opportunity with ai is a mosys tremendous and they are willing to spend tens of billions of dollars theyre not afraid to spend, weve seen for 18 years in massive technology, they invest aggressively, Profit Margins get hit a little bit. Hockey sticks as people come to realize these guys are ahead of the curve. The same thing is happening with amazon. It bodes very well for the supply chain names. They are the arms providers for this ai race so i think its positive for the ai ecosystem. Ed you said it was the most bullish call from andy jassy youve heard in quite some time. Was it light on details though . The one thing we did not hear is any sort of tangible number for capex other than brian saying it will be meaningfully higher in 2024. I dont think they wants to pigeonhole themselves with specifically quantifying the fact that theyre using overwhelming or significant i think gave them room to fall down later on. They know theres a massive opportunity in their ok to spend aggressively. One thing that could be different this time is backing previous investment cycles they did not have as much profitability as they do now. Amazon has multiple short businesses. They have a wf aws, logistics, all these businesses that i hope or think could want the impact of profitability and also on the call they reiterated over and over again they think they can be efficient and drive growth at the same time. Lets see if they can throw the needle. I would not bet against these guys. Ed if aws is the cash cow and bright spot for everyone whats the next best thing in the multifaceted business . Daniel i think it is aws for now. One thing that was weaker in terms of guidance, they said the european consumer was lackluster. I dont really talk to investors concerned about the european concern business so again i think its focused on aws but going deeper it was tremendous. This was the breadandbutter years ago and end up growing past that now. I think its to spencers point earlier its can it continue to drive the bottom line in the ecosystem is going to get better. Caroline not particularly articulating cap acts when it comes to the amount of spending but what we can glean for those providing some cloud offering as they are spending big. What do we worry about or are we optimistic about when it comes to nvidia and the other chip names that need this exuberance to suspend the market cap we continue to see. Daniel we kind of say it is the trillion dollar question is how many more quarters are these ai spenders can get the hall pass until show me the roi on this buildout what will we get paid back. We dont know whats can happen just yet. Last night andy jassy said they have seen billions of dollars of airelated revenue on aws. I dont want to say its spring shoots but they are making good headway in that sense. We had amazing numbers, microsoft azure accelerated on a big number, a google cloud continues to do well so we now have three of the major biggest hyper scalers coming back with tremendous results. Caroline managing director and global equities, great to have some time with you. Tesla cutting its Supercharger Team and what could be a big hit to the overall ev ecosystem. Details in a minute. Ed quick look at supermicro down 18 . They did great just below expectations but this is a stock up here today. Its a server maker, the heart of the ai story and Higher Expectations become a big disappointment. We will be right back. This is bloomberg technology. Ed time for talking tech. The binance founder order to spend four months in prison for failures that allowed cyber criminals and terrorist groups to free trade on the Worlds Largest group of currencies exchange. The sentences far below the three years requested by prosecutors to a heavily scrutinized industry which is rebounding from a slew of highprofile scandals plus paramount global agreed to extend contract talks with charter communications. Theyre set to extend the talks with charter. One of the largest cable tv providers ahead of last nights deadline preventing its channels from going dark on the cable service. Teslas Pivotal Partnership may amount to a uturn of sorts for elon musk. The tesla ceo has long claimed his company can offer selfdriving without hd maps but in order to get those markets in china he had no choice but to join with a local partner for a mapping license. Caroline there is so much news, the company eliminating its entire supercharger organization it basically we had a breaking news of the head of hr is now stepping down. Craig is with us. Lets start on the supercharge element of this. The Auto Industry were read, im not sure at tesla they are worried as well. Craig its incredible in part because to teslas credit this was a fantastic business they built over more than a decade. You can sort of quibble with some of the promises made and not necessarily capped but muska is offered over the years but what this company has done is built a solid and extensive fast reliable charging network and you hear that from tesla customers all over the place, when they talk about why they love their car so much this is one of the sort of main positives that is often pointed to is when youre in need of a top up, tesla has the charging network to support you. So to make that sudden decision to get rid of roughly 500 people including the head of this business who they just put forward in front of investors over a year ago as an example of what they have behind muska is leading to a lot of people scratching their heads. Ed i want to bring some breaking news thats happened since you sat in the chair. What im hearing it reported just now is teslas most senior hr executive, senior director has actually left the company. My suspicion is she was fired but this was another example of a high profile departure for a big wave of layoffs, just give us your reaction . Craig it is very interesting and this makes it to in two days. Departures of senior women within this organization, its a company that for the most part when you do tune in to these events, it is very much well dominated and i mentioned investor day in march of last year there were 16 executives along just trotted out along with elon musk. Two of those executives were women. I also think this drumbeat of news really sort of speaks to this idea as you reported just last week of chaos it really seems like a chaotic moment for this company where they are trying to fix problems they dont have and not addressing problems that they do have. Ed there are many out there who would note elon musk knows what hes doing, and through the other side. Coming up microsoft reveals investments in openai falling behind google. We will stick with us, this is bloomberg technology. Ed microsoft motivation for investing heavily and partnering with openai came from a sense of falling badly behind google according to an internal email released in the Justice Departments antitrust case against the search giant. Joining us as Mike Sheppard out of d. C. I love these investigations because of the paper trail and this was a juicy one to get details on. Mike it provides another window specifically into the battle of the Biggest Tech Companies from Artificial Intelligence. This is an emerging area for them. A potentially lucrative one. We saw that showing up cloud revenue and ai services where they want to maintain an edge. Its also an area of focus for regulators and prosecutors here. It happened to be mentioned in this case against google. This is where microsoft internal email emerged. Caroline interesting it was news organizations that pushed for this document in its redacted form to be published. We have thursday friday upon us. Then the Closing Remarks of this overall doj case against alphabet. Daniel mike my colleague will be covering that closely to see how this will end up. We wont have a ruling right away in the case until the summer time. This is one that we are watching closely because it is part of a series of moves by the ftc and Justice Department which is handling this case against the largest Tech Companies questioning whether they are engaging in anticompetitive practices and looking at them from a series of fronts. When it comes to Artificial Intelligence they are concerned they are trying to get involved with or lock in relationships with the startups like openai, a deep mind the way that preserves the market dominance. We are worried about this interlocking directorships among these ai startups as well. Caroline so on the nose, we thank you so much. Dan loebs third point. He is saying nearly half of its equity portfolio and Artificial Intelligence related companies now exists. The Hedge Fund Billionaire founder and ceo said the ai revolution favors incumbents who are deploying their skills in this arms race. Ed more earnings, talking pinterest, this is bloomberg. Ed welcome back to bloomberg technology. Caroline lets get a check on these markets. Its a fed day and we were there for a little bit cautious trading and then 2 30 p. M. Press conference. Looking at the nasdaq now in large part as the chips continue to fall we will dig into a moment why. We are knocking to be increasing the pace of our options in the third quarters. We are down some two basis points even though we are looking at the fed. Some of this anxiety, some of the etf slowing in terms of net inflows we are a bit below that now below 57,000 mark on it comes to bitcoin. Some individual movers. I pushed ahead stocks really underwater. We see the tepid forecast with the in terms of the ai focused and some of the big chip names. Im looking at amazon that weve seen in several years. Weve seen billions brought in managing to be a relief in the amazon and strong ai process. And then we have pinterest. There up 21 on the day since october of 2020. We finally go back to this revenue run rate. We are seeing the focus on gen z , management trying to build momentum. What we will be digging into. Ed i did not have pinterest on my earnings bingo card. This First Quarter sales user growth, pinterest ceo. Terrific to have you on the program. The story seems quite clear. And focusing what is the relationship in the activity between the shopping and the gen z users . Bill we are finding our best Product Market fit in years. As you noted, gen z is our largest demographic. More than 40 of our platform is the Fastest Growing demographic and the core of that has been the rising action ability in the platform. As we made pinterest more actionable so people can get tomorrow the things they are finding on pinterest we see that work well for users where weve accelerated user growth. But its also coming through for advertisers. Revenue grew 23 this quarter nearly doubling our Revenue Growth rate from last quarter. We are really seeing this between users finding the things they love on pinterest and a great place for them to meet users in market looking to shop. Caroline lets talk but the synergies with amazon and google, with those ad partnerships. How much of the advertising uptick for these third parties . Bill historically pinterest is solved digital shopping but its hard to get to the things you found. We have opened the stores and in doing so we are seeing retailers broadly finding great pe