Stocks in Record Territory, Reddit IPO Reaction

Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Nathan 0:00:12.119 --> 0:00:15.080 Hager and I'm Karen Moscow. Here are the stories we're 0:00:15.120 --> 0:00:15.920 following today. 0:00:16.280 --> 0:00:19.439 Stocks are closing out the weekend record fashion optimism that 0:00:19.480 --> 0:00:21.720 the FED will be able to engineer a soft landing 0:00:21.760 --> 0:00:24.360 propelled the S and P five hundred to its twentieth 0:00:24.440 --> 0:00:27.880 record this year. The Nasdaq one hundred also hit an 0:00:27.880 --> 0:00:31.080 all time high. Cheryl Smith is portfolio manager at Trillia 0:00:31.120 --> 0:00:31.920 Masset Management. 0:00:32.240 --> 0:00:35.080 Equity market wants to believe, and wants to believe hard, 0:00:35.320 --> 0:00:38.440 and is looking for every possible sign to go higher. 0:00:39.640 --> 0:00:42.360 The fact is that we are twenty four months into 0:00:42.400 --> 0:00:45.239 a FED tightening cycle, and that is about when we 0:00:45.320 --> 0:00:50.000 normally see interest rate hikes begin to really affect the 0:00:50.040 --> 0:00:51.000 economy truly. 0:00:51.080 --> 0:00:54.279 Massive Management's Cheryl Smith notes, in just three months, the 0:00:54.320 --> 0:00:56.720 S and P five hundred is already trading above the 0:00:56.760 --> 0:01:00.760 average year end forecast of strategists tracked by Bloomberg Well Nathan. 0:01:00.800 --> 0:01:04.200 Helping to fuel optimism was another successful trading debut of 0:01:04.200 --> 0:01:08.959 an IPO social media company. Reddit rose forty eight percent yesterday. 0:01:09.160 --> 0:01:12.640 Chief operating officer Jen Wong says the artificial revolution is 0:01:12.640 --> 0:01:14.959 at the center of reddits value proposition. 0:01:15.400 --> 0:01:18.720 Large language models need data to train on, and when 0:01:18.720 --> 0:01:22.680 you look at Reddit's corpus nineteen years of human experience 0:01:22.959 --> 0:01:28.120 organized by topic with well in moderation and relevance, that's 0:01:28.200 --> 0:01:32.119 incredibly important to building both a chat capability and the 0:01:32.160 --> 0:01:35.960 freshness of information. So that's an area where you know, 0:01:36.040 --> 0:01:37.760 we see opportunity. 0:01:37.840 --> 0:01:40.560 And Reddit's gen Wong Kele's Bloomberg. The firm is also 0:01:40.600 --> 0:01:43.440 in the early stages of allowing third parties to license 0:01:43.480 --> 0:01:45.240 access to data on the platform. 0:01:45.360 --> 0:01:48.960 In yesterday's closing price of fifty dollars and forty four cents, Karen, 0:01:49.000 --> 0:01:52.560 Reddit has a market value of eight billion dollars includes 0:01:52.600 --> 0:01:56.200 stock options and restricted share units. The company's fully diluted 0:01:56.280 --> 0:01:59.800 valuation runs closer to nine and a half billion. Bloomberg 0:01:59.800 --> 0:02:03.000 and Elligence analyst man Deep Singh explains what going public 0:02:03.080 --> 0:02:04.880 means for Reddit as. 0:02:04.760 --> 0:02:07.480 A public company. I think they'll be forced to improve 0:02:07.520 --> 0:02:10.560 their act in terms of, you know, showing more profitability. 0:02:10.760 --> 0:02:13.160 I don't think there is scare in terms of cash 0:02:13.200 --> 0:02:15.680 burn or you know, them running out of money. They've 0:02:15.720 --> 0:02:18.799 got a perfectly fine balance sheet, but now it's all 0:02:18.840 --> 0:02:22.800 about showing monetization. And the LM. The generator bi aspect 0:02:22.840 --> 0:02:23.480 is huge. 0:02:23.560 --> 0:02:27.160 Bloomberg Intelligence analyst man Deep Sing argued even before the 0:02:27.200 --> 0:02:29.320 pricing that Reddit could be worth as much as ten 0:02:29.440 --> 0:02:30.280 billion dollars. 0:02:30.600 --> 0:02:32.959 On Nathan, several stocks are on the move this morning. 0:02:33.040 --> 0:02:36.400 Shares of FedEx at more than twelve percent. Cost cutting 0:02:36.440 --> 0:02:39.800 help the courier deliver better than expected earnings. FedEx also 0:02:39.840 --> 0:02:42.600 plans to buy back five billion dollars of its shares. 0:02:42.760 --> 0:02:45.360 On the flip side, Careen shares of Lululemon are down 0:02:45.480 --> 0:02:49.280 nearly thirteen percent. The athletic maker forecast lower than expected 0:02:49.360 --> 0:02:51.680 sales outlook for the first quarter and the full year. 0:02:52.080 --> 0:02:55.040 Lulu says visits to its stores in the US slowed 0:02:55.040 --> 0:02:56.200 at the beginning of the year. 0:02:56.639 --> 0:02:59.760 Also lower this morning. Shares of Nike they are down 0:02:59.840 --> 0:03:02.919 almost seven percent this morning Nathan, the world's largest sports 0:03:02.919 --> 0:03:06.200 where retailer, warning investors that sales will take a hit 0:03:06.320 --> 0:03:09.800 later this year. Nike says it's working to realign merchandise 0:03:09.880 --> 0:03:11.680 to better match what shoppers want. 0:03:11.480 --> 0:03:13.840 To buy, and investors have also taken a big bite 0:03:13.880 --> 0:03:16.400 out of Apple's market value. In fact, that dropped one 0:03:16.480 --> 0:03:20.240 hundred and thirteen billion dollars yesterday. This latest slide comes 0:03:20.240 --> 0:03:24.800 after Attorney General Merrick Garland announced an antitrust lawsuit against 0:03:24.840 --> 0:03:28.160 the company, accusing it of blocking rivals from accessing hardware 0:03:28.200 --> 0:03:30.400 and software features on the iPhone. 0:03:30.480 --> 0:03:33.560 We allege that Apple has employed a strategy that relies 0:03:33.600 --> 0:03:39.520 on exclusionary, anti competitive conduct that hurts both consumers and developers. 0:03:40.320 --> 0:03:44.800 For consumers, that has meant fewer choices, higher prices and fees, 0:03:45.320 --> 0:03:50.160 lower quality smartphones, apps and accessories, and less innovation from 0:03:50.200 --> 0:03:51.600 Apple and its competitors. 0:03:51.760 --> 0:03:55.200 In Merrick Garland's Justice Department lawsuit has been strongly refuted 0:03:55.280 --> 0:03:57.600 by Apple. It says it is wrong on the facts 0:03:57.640 --> 0:03:59.160 and the law on we. 0:03:59.120 --> 0:04:02.160 Turn to the economy Nathan and criticism of the Federal 0:04:02.200 --> 0:04:06.400 Reserve by a former Treasury secretary, Larry Summers is questioning 0:04:06.480 --> 0:04:09.160 why the Fed is continuing to signal that it's prepared 0:04:09.200 --> 0:04:12.480 to lower interest rates despite a strong economy that's giving 0:04:12.480 --> 0:04:14.880 off projections of still too high inflation. 0:04:15.560 --> 0:04:19.520 My sense is still that the Fed is itchy fingers 0:04:20.040 --> 0:04:24.040 to start cutting rates, and I don't fully get it. 0:04:24.320 --> 0:04:26.719 I don't know why we're in such a hurry to 0:04:26.760 --> 0:04:31.600 be talking about moving towards the accelerator. 0:04:31.200 --> 0:04:33.960 And Larry Summers added that the Fed's current neutral policy 0:04:34.040 --> 0:04:36.600 rate is more restrictive than it needs to be. Here 0:04:36.680 --> 0:04:39.360 the full conversation on Bloomberg Wall Street Week today at 0:04:39.400 --> 0:04:43.400 six pm Wall Street Time, on Bloomberg Radio and television on. 0:04:43.400 --> 0:04:46.960 Capitol Hill, Karen. Another partial government shut down deadline is 0:04:47.120 --> 0:04:50.279 just hours away. Funds run out for about seventy percent 0:04:50.320 --> 0:04:54.040 of federal agencies at midnight tonight, but later this morning, 0:04:54.080 --> 0:04:56.480 the House will vote on a one point two trillion 0:04:56.560 --> 0:04:59.520 dollar measure to keep them open through the end of September. 0:04:59.560 --> 0:05:02.440 Speaker Mike Johnson's bringing this bill up under a streamlined 0:05:02.480 --> 0:05:06.800 process that requires two thirds support. Bloomberg's Kate Actly reports 0:05:06.839 --> 0:05:07.960 the clock is ticking. 0:05:08.200 --> 0:05:11.760 There's this sort of the pressure building two week recess 0:05:11.800 --> 0:05:15.680 on the horizon. Everybody wants to get back to their districts. Yes, 0:05:15.760 --> 0:05:18.239 it could fall apart, of course, but we have seen 0:05:18.279 --> 0:05:20.880 them again and again try to wrap things up so 0:05:20.920 --> 0:05:23.520 that they don't in an election year, you know, sort 0:05:23.520 --> 0:05:25.839 of draw attention to the dysfunction of government. 0:05:25.960 --> 0:05:29.200 Bloomberg's Kate Actly reports some Republicans are crying foul over 0:05:29.240 --> 0:05:32.120 the process. Speaker Johnson is bypassing a House rule that 0:05:32.160 --> 0:05:35.400 gives lawmakers seventy two hours to review a bill before 0:05:35.400 --> 0:05:36.120 they vote on it. 0:05:36.480 --> 0:05:38.200 Well, now, Nathan, to the latest on the war in 0:05:38.240 --> 0:05:40.720 the Middle Age. There are signs of progress toward a 0:05:40.760 --> 0:05:43.760 possible Gaza peace agreement. At the same time, there are 0:05:43.839 --> 0:05:46.680 threats of an invasion of Rolfa on Bloomberg's and Baxter 0:05:46.760 --> 0:05:47.520 has the details. 0:05:47.920 --> 0:05:51.720 Delegations from Israel, the US, Cutter, and Egypt will meet 0:05:51.760 --> 0:05:53.520 today to try to draw up a plan so that 0:05:53.560 --> 0:05:56.760 the invasion does not have to happen. But Israel's Minister 0:05:56.880 --> 0:06:00.679 for Strategic Affairs, Ron Dermer, on a US podcast, hamas 0:06:00.839 --> 0:06:03.480 infrastructure remains in Rava. 0:06:03.000 --> 0:06:06.240 Which you saw in October seventh, was a genocidal force 0:06:06.279 --> 0:06:08.560 that wants to wipe out all the Jews. And it's 0:06:08.600 --> 0:06:11.120 the first program that we've had since the birth of 0:06:11.120 --> 0:06:14.839 the State of Israel. We have the ability to defend ourselves. 0:06:14.360 --> 0:06:14.799 He says. 0:06:14.800 --> 0:06:18.560 If there is not a peace deal, the assault will happen. 0:06:19.200 --> 0:06:21.200 Ed Baxter, Bloomberg Radio, All right. 0:06:21.240 --> 0:06:26.080 Ed, thank you, and it's time now for a look 0:06:26.120 --> 0:06:28.040 at some of the other stories making news in New 0:06:28.120 --> 0:06:30.320 York and around the world. And for that we're joined 0:06:30.320 --> 0:06:32.560 by Bloomberg's Michael Varr Michael, good Morning. 0:06:32.400 --> 0:06:35.640 Good Morning, Karon, and battled New Jersey Senator Bob Menendez 0:06:35.640 --> 0:06:38.280 says he won't be seeking re election as a Democrat, 0:06:38.839 --> 0:06:41.920 but is keeping the door open to an independent run 0:06:42.000 --> 0:06:45.520 for his seat. Menendez and his wife Nadine are facing 0:06:45.600 --> 0:06:49.960 federal corruption charges. Prosecutors alleged they took gifts in exchange 0:06:49.960 --> 0:06:53.719 for doing official favors for the governments of Egypt and Cutter. 0:06:54.160 --> 0:06:57.240 In the video he posted on social media, Menendez talented 0:06:57.240 --> 0:06:59.920 the work he's done in the Senate and declared his 0:07:00.040 --> 0:07:01.160 innocence on churges. 0:07:01.400 --> 0:07:03.640 This would allow me the time to not only remind 0:07:03.680 --> 0:07:07.279 New Jerseyans of how I've succeeded in being your champion, 0:07:07.760 --> 0:07:11.000 but how we will secure our financial futures, meet the 0:07:11.080 --> 0:07:15.000 challenges of raising a family, owning a home, provide for 0:07:15.080 --> 0:07:18.840 a college education, and secure a more peaceful world for 0:07:18.880 --> 0:07:19.680 all of us to live in. 0:07:20.000 --> 0:07:23.360 If Menendez does run as an independent, he would face 0:07:23.480 --> 0:07:27.000 one of two Democratic candidates in November, Governor Phil Murphy's 0:07:27.000 --> 0:07:32.000 wife Tammy Murphy, or Representative Andy Kim. Russian missile and 0:07:32.080 --> 0:07:37.840 drone attacks damage electricity and transmission systems in several Ukrainian regions, 0:07:37.880 --> 0:07:41.480 causing power cuts in some areas. Two New York City 0:07:41.480 --> 0:07:45.240 squatters wanted for murder are being sought in Pennsylvania. It 0:07:45.320 --> 0:07:48.480 began last week when fifty two year old Nadia Vittel 0:07:48.680 --> 0:07:52.120 arrived from Spain the check on her deceased mother's luxury 0:07:52.160 --> 0:07:55.960 Manhattan apartment. Police say she encountered two squatters, a man 0:07:56.040 --> 0:07:58.760 and a woman living in the apartment. Police say a 0:07:58.760 --> 0:08:01.840 struggle broke out. The tail was thrown into a sheet 0:08:01.960 --> 0:08:06.000 rock wall and died from blunt forced trauma to her head. 0:08:06.360 --> 0:08:08.720 Her body was stuffed in a Duffel bag and put 0:08:08.880 --> 0:08:12.280 in a closet. The victim's son came to check on her, 0:08:12.600 --> 0:08:15.520 only to discover a foot sticking out of the Duffel bag. 0:08:16.040 --> 0:08:19.080 The building superintendent says the sun then called authorities. 0:08:19.360 --> 0:08:24.760 We directed them to the closet because all the clothes 0:08:24.800 --> 0:08:28.000 had been pulled out, and he said there was a 0:08:28.040 --> 0:08:32.400 bag underneath it, and he said, can you open the 0:08:32.440 --> 0:08:34.640 bag because I believed as a body in there. 0:08:34.880 --> 0:08:38.120 It's believed the suspected squanders took the Dell's car and 0:08:38.120 --> 0:08:41.960 fled to Pennsylvania. Adult film actress Stormy Daniel says she 0:08:42.160 --> 0:08:46.760 is absolutely ready to testify against her former President Trump 0:08:46.960 --> 0:08:50.640 in his New York hush money criminal trial. Daniel says, 0:08:50.679 --> 0:08:55.079 though she's somewhat surprised by the strong threats she's received 0:08:55.120 --> 0:08:56.439 after the case was announced. 0:08:56.679 --> 0:08:59.199 Suddenly the indictment happens and all of this stuff and 0:08:59.240 --> 0:09:01.480 it was just as why I it was like twenty 0:09:01.520 --> 0:09:04.359 eighteen all over again, except now they're more vicious. 0:09:04.679 --> 0:09:08.680 Stormy. Daniel spoke on ABC's The View Global News twenty 0:09:08.679 --> 0:09:10.880 four hours a day and whenever you want it with 0:09:10.960 --> 0:09:14.160 the Bloomberg News. Now, I'm Michael Barr, and this is Bloomberg. Hearin. 0:09:14.280 --> 0:09:21.400 All right, Michael, thank you. Time now for the Bloomberg 0:09:21.480 --> 0:09:24.240 Sports Update, brought to you by Tri State Audian. 0:09:24.280 --> 0:09:26.559 For that, we bring in John Stanshower. John, good morning, 0:09:26.640 --> 0:09:29.199 Good morning Karen. First round is what makes the NCAA 0:09:29.280 --> 0:09:31.720 tournament so special. So we see it every year, smaller 0:09:31.800 --> 0:09:34.440 schools who play in small James, very often not on TV. 0:09:34.520 --> 0:09:37.920 The players don't get nil money, and the upset a heavyweight. 0:09:37.960 --> 0:09:39.960 We saw two years ago with Saint Peter's last year, 0:09:40.040 --> 0:09:43.280 Fairley Dickinson and last night the Cinderella Slipper belonged to 0:09:43.400 --> 0:09:47.680 Oakland University from Rochester, Michigan, a loser of eleven games, 0:09:47.679 --> 0:09:50.440 a fourteen seed who had never before won an NCAA 0:09:50.520 --> 0:09:54.400 first round game, The Golden Grizzlies knocked off Kentucky eighty 0:09:54.440 --> 0:09:57.600 to seventy six. Jack Goldkie scored thirty two, made ten 0:09:57.679 --> 0:10:00.600 threes and has asked how David go live. 0:10:01.120 --> 0:10:04.480 Obviously we come in were the underdog by all measures, 0:10:04.520 --> 0:10:07.680 but you just gotta as a player, you can't think 0:10:07.720 --> 0:10:09.120 that way. You got to go out there and you 0:10:09.120 --> 0:10:10.679 got to think that you have the same talent level 0:10:10.720 --> 0:10:12.600 as them. I know they have draft picks, and I 0:10:12.640 --> 0:10:14.960 know I'm not going to the NBA, but I know 0:10:15.040 --> 0:10:16.960 on any given night, I can compete with those type 0:10:16.960 --> 0:10:18.680 of guys, and our team can compete with those type 0:10:18.679 --> 0:10:19.040 of guys. 0:10:19.200 --> 0:10:21.440 As for Saint Peter's no run this year, they lost 0:10:21.440 --> 0:10:24.240 by thirty four to Tennessee. Wagner lost to North Carolina 0:10:24.280 --> 0:10:27.240 by twenty eight. Dan Monson now joins the unemployment line. 0:10:27.240 --> 0:10:29.040 He got fired by Long Beach State, but his team 0:10:29.040 --> 0:10:31.680 surprisingly won the Big West Turney. They then lost to 0:10:31.720 --> 0:10:34.760 Arizona by twenty The Knicks lost in Denver, won thirteen 0:10:34.800 --> 0:10:37.800 to one hundred too much. Nicola Jochus thirty points triple double. 0:10:37.880 --> 0:10:40.480 Jalen Brunson scored twenty six. He averaged thirty seven a 0:10:40.520 --> 0:10:42.480 game on the road trip that saw the Knicks go 0:10:42.559 --> 0:10:44.680 three and one. They're back home tomorrow afternoon to play 0:10:44.720 --> 0:10:46.760 the Nets, who lost their fifth in a row one 0:10:46.840 --> 0:10:49.559 fifteen to one oh eight in Milwaukee. Rangers won five 0:10:49.640 --> 0:10:51.880 to two in Boston Artemi Panera and two goals in 0:10:51.920 --> 0:10:54.240 the second period. Adam Fox snapped at two all time 0:10:54.240 --> 0:10:56.720 in the third, and the Rangers then with two empty netters, 0:10:56.720 --> 0:10:59.280 the second one by Pinera and to complete the hat trick. 0:10:59.320 --> 0:11:02.120 He's now the fifth leading score in the NHL. Islanders 0:11:02.160 --> 0:11:04.400 lost six to three at Detroit. Devil's beat Winnipeg four 0:11:04.440 --> 0:11:06.920 to one. The NFL says it will not outlaw the 0:11:07.000 --> 0:11:11.000 quarterback sneak Push Push John Stashcheller Bloomberg. 0:11:10.679 --> 0:11:17.240 Sports Coast to coast on Bloomberg Radio, nationwide on Sirius XM, 0:11:17.400 --> 0:11:21.079 and around the world on Bloomberg dot Com, Bloomberg Television 0:11:21.160 --> 0:11:27.000 and the Bloomberg Business app. This is Bloomberg Daybreak. Good morning. 0:11:27.000 --> 0:11:27.800 I'm Nathan Hager. 0:11:27.960 --> 0:11:31.400 Social media company read It made its much anticipated trading 0:11:31.440 --> 0:11:35.440 debut yesterday, marking the fourth largest initial public offering on 0:11:35.520 --> 0:11:39.120 a US exchange this year. Shares swored forty eight percent 0:11:39.200 --> 0:11:43.120 above their IPO price, closing at fifty dollars forty four cents. 0:11:43.520 --> 0:11:46.719 Investors are betting big on Reddit's vision of profit from 0:11:46.720 --> 0:11:51.240 the growth in artificial intelligence. Reddit's chief operating officer, Jen 0:11:51.320 --> 0:11:54.800 Wong joined Bloomberg's Caroline Hyde and Ed Ludlow to talk 0:11:54.840 --> 0:11:57.640 about how Reddit plans to leverage AI to increase its 0:11:57.679 --> 0:12:01.080 value and how going public is giving the company plenty 0:12:01.080 --> 0:12:01.760 of momentum. 0:12:02.360 --> 0:12:05.320 Well, it's certainly a lot of press on a day 0:12:05.400 --> 0:12:08.920 like today, it is a special day. But becoming a 0:12:08.920 --> 0:12:12.200 public company has just made us a better company. We've 0:12:12.200 --> 0:12:16.160 actually been in this process longer than most almost two 0:12:16.240 --> 0:12:19.839 years actually, and that process has made us more disciplined, 0:12:20.280 --> 0:12:24.160 more operationally rigorous, and actually allowed us to get to 0:12:24.240 --> 0:12:28.120 know investors better and tell our story. And so this 0:12:28.240 --> 0:12:31.400 whole process has made us a better company, and we're 0:12:31.400 --> 0:12:33.840 prepared to be a public company. I think it's actually 0:12:33.880 --> 0:12:38.360 been really good for us, and I think companies that 0:12:38.640 --> 0:12:39.520 you can. 0:12:39.800 --> 0:12:41.880 Go public it's sort of a duty. 0:12:41.880 --> 0:12:45.240 It's part of the you know, process of maturing as 0:12:45.280 --> 0:12:45.840 a company. 0:12:46.240 --> 0:12:47.640 And then the benefit of. 0:12:47.600 --> 0:12:52.240 Having our sharehold our employee employees have liquidity which we 0:12:52.320 --> 0:12:55.520 promise to them, and in addition, have our communities and 0:12:55.640 --> 0:12:57.280 users be able to be shareholders. 0:12:57.520 --> 0:12:58.920 Makes a lot of sense for Reddit. 0:12:59.720 --> 0:13:03.040 The evolution of the story is for you moving away 0:13:03.080 --> 0:13:06.800 from a solely advertising based business model to one way 0:13:06.840 --> 0:13:10.440 you license your user data to the companies that are 0:13:10.440 --> 0:13:13.240 building large language models. I just asked if you could 0:13:13.280 --> 0:13:16.240 explain to our audience how that works in practice, how 0:13:16.280 --> 0:13:17.720 you're going to grow that business. 0:13:18.360 --> 0:13:21.679 Yeah, Well, just ahead of addressing that, I just wanted 0:13:21.720 --> 0:13:24.880 to write context. One of the things that's so special 0:13:24.880 --> 0:13:29.320 about Reddit is that we play in three big addressable markets. 0:13:29.400 --> 0:13:32.600 We have this core advertising business. Adds is a great business, 0:13:32.679 --> 0:13:35.239 it's still early, we have great traction and momentum. 0:13:35.440 --> 0:13:36.560 That's our core business. 0:13:36.920 --> 0:13:39.520 We have an emerging data licensing business that we built 0:13:39.520 --> 0:13:42.719 the foundations for last year because Reddit's corpus of information 0:13:43.280 --> 0:13:47.000 is incredibly important to the training of large language models 0:13:47.160 --> 0:13:50.280 and also for insights for different kinds of businesses. And 0:13:50.320 --> 0:13:54.120 the third is a user economy where our communities go 0:13:54.160 --> 0:13:57.240 beyond conversation and to be able to transact with each other. 0:13:57.440 --> 0:13:59.679 Now you asked about the data licensing business, which we 0:13:59.720 --> 0:14:01.560 built the foundations for last year. 0:14:01.880 --> 0:14:03.240 That has two pieces to it. 0:14:03.400 --> 0:14:05.800 It is a piece that's sort of well established, where 0:14:06.040 --> 0:14:10.719 there's social listening for marketing for companies who want to 0:14:10.760 --> 0:14:12.440 understand what's happening on reddits. 0:14:12.120 --> 0:14:13.480 And for marketing campaigns. 0:14:13.640 --> 0:14:16.760 There's also financial services companies who are interested in that. 0:14:16.800 --> 0:14:20.520 Those are well established markets. And then there's the new 0:14:20.640 --> 0:14:25.880 emerging market of AI where large language models need data 0:14:25.960 --> 0:14:28.160 to train on. And when you look at Reddit's corpus, 0:14:28.600 --> 0:14:34.040 nineteen years of human experience organized by topic with well 0:14:34.200 --> 0:14:38.760 in moderation and relevance, that's incredibly important to building both 0:14:38.760 --> 0:14:42.840 a chat capability and the freshness of information. So that's 0:14:42.880 --> 0:14:45.640 an area where you know, we see opportunity. I think 0:14:45.680 --> 0:14:47.800 what that signals, you know, whether it shows up honestly 0:14:47.800 --> 0:14:49.800 in our revenue or it shows up in the value 0:14:49.800 --> 0:14:52.920 of Reddit is how valuable Reddit is? You know, the 0:14:53.000 --> 0:14:56.320 more that we move toward this AI world, that corpus 0:14:56.320 --> 0:15:00.000 and that knowledge and refreshment of human experience becomes more valuable. 0:15:00.240 --> 0:15:03.200 Those lms, the models are being built a new and 0:15:03.600 --> 0:15:08.880 different ways. This actual technology also develops. I'm interested as 0:15:08.880 --> 0:15:11.120 to really whether this goes on in perpetuity. Do you 0:15:11.160 --> 0:15:15.880 see this sort of licensing being steady and secure for ten. 0:15:15.760 --> 0:15:16.360 Years from now? 0:15:16.680 --> 0:15:21.600 This is so early in this emergence of this technology, 0:15:21.960 --> 0:15:24.840 it's hard to see far out. The way I think 0:15:24.880 --> 0:15:27.240 about it, the way we think about it is this, 0:15:27.640 --> 0:15:30.440 the redd Its corpus of data is incredibly valuable, and 0:15:30.480 --> 0:15:35.520 it gets more valuable because as there's more more content 0:15:35.560 --> 0:15:40.040 that's generated, maybe by AI or computers, original human thoughts 0:15:40.040 --> 0:15:43.560 and ideas increase in value. Right if you think about it, 0:15:43.800 --> 0:15:46.120 a new car comes out, who's going to review it? 0:15:46.440 --> 0:15:47.640 A real life. 0:15:47.400 --> 0:15:49.600 Family of six can actually tell you what it's like 0:15:49.680 --> 0:15:53.280 to drive that car. That's always going to be valuable. 0:15:53.640 --> 0:15:55.600 And so you know, whether that shows up in data 0:15:55.640 --> 0:15:59.120 licensing or in the products that Reddit built, it is valuable. 0:16:02.000 --> 0:16:05.080 This is Bloomberg Daybreak Today, your morning brief on the 0:16:05.120 --> 0:16:08.520 stories making news from Wall Street to Washington and beyond. 0:16:08.800 --> 0:16:11.560 Look for us on your podcast feed at six am 0:16:11.640 --> 0:16:15.320 Eastern each morning on Apple, Spotify and anywhere else you 0:16:15.360 --> 0:16:16.520 get your podcasts. 0:16:16.680 --> 0:16:19.360 You can also listen live each morning starting at five 0:16:19.400 --> 0:16:22.000 am Wall Street time on Bloomberg eleven three to zero 0:16:22.040 --> 0:16:24.960 in New York Bloomberg ninety nine to one in Washington, 0:16:25.000 --> 0:16:28.200 Bloomberg one oh six' one in Boston, and Bloomberg ninety 0:16:28.240 --> 0:16:29.640 sixty in San Francisco. 0:16:30.000 --> 0:16:33.160 Our flagship New York station is also available on your 0:16:33.200 --> 0:16:38.640 Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus. 0:16:38.680 --> 0:16:42.240 Listen coast to coast on the Bloomberg Business app, seriusxmb 0:16:42.440 --> 0:16:46.480 iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager. 0:16:46.240 --> 0:16:49.400 And I'm Karen Moscow. Join us again tomorrow morning for 0:16:49.520 --> 0:16:52.040 all the news you need to start your day right 0:16:52.040 --> 0:17:03.120 here on Bloomberg Daybreak