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tv   Bloomberg Technology  Bloomberg  July 7, 2022 11:00pm-12:00am EDT

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>> from the heart of where innovation, money and power collide, in silicon valley and beyond, this is bloomberg technology with emily chang. ♪
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caroline: i am caroline hyde in new york, infra emily chang, and this is "bloomberg technology." coming up in the next details on hour, a report that elon musk's deal to buy twitter is in serious jeopardy, a report saying the team has stopped engaging in discussions around the 44 billion dollar deal. and we will chat with the eventbrite chairman and cofounder kevin hart about the consumer demand of life events as they have made a big return post-pandemic. and we will chat with the major league soccer commissioner don garber on details about doubling down on sports betting that are this hour. first a look at the markets. taylor riggs is here how to show the nasdaq route 8. taylor: is this "bloomberg's markets: the close"? [laughter] take a look at where we ended our for the day. we have been talking about this
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big four-day rally that the s&p foot together. some of the biggest streak we have had since going back to march. we are getting some green on the screen. i think you mentioned the nasdaq 100. it was all about big tech, you can see another four-day rally. big tech pushing forward up about 9%. still inside of the bear market territory, by trying to post some gains, even though yields are rising. the key jobs decision is coming on friday. i want to change up the board. it wouldn't be a czech show if we did not throw in some crypto. bitcoin rallying a little bit, holding above the key $20,000 level, trying to get to 21,600. at least holding on to the key support levels for you, caroline. caroline: taylor, we thank you. a perfect roundup. meanwhile, recent breaking news,
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elon musk's deal to buy twitter is purportedly in serious jeopardy, according to "the washington post." joining is ed ludlow in sun valley where elon musk is set to be landing soon. eddie: exactly. the key thrust of that "washington post" report is that elon musk's team working on this deal do not believe the data. the data that twitter is providing about the level of the ortiz on the platform is verifiable. the "washington post" reporting that they have stopped engaging on the financing on the deal. you look at the after hours reaction, twitter stock was down 5% or 6%. this puts the deal in serious doubt, with elon musk not yet here in sun valley. caroline: about the bots, i thought they just reiterated the guidance about them? ned: the timing of this is bizarre and spectacular,
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frankly, because earlier today, twitter executives reiterated that less than 5% of users on the platform are bots. twitter believes, according to these executives, that a third party cannot verify it because it is a mix of public and private data that twitter holds as the operator of the platform and, as has been reported, they have been going above and beyond to give elon musk that extra data anyways. so if the "washington post" report is to believed, it is going to make for an awkward situation here at the conference. caroline: an awkward situation that could last years, right? because you just cannot back out of the deal that you said you did not do due diligence on anyway. eddie: this is interesting. i have been speaking to folks in the mountain bike trails of sun valley, and the reverse termination fee on this deal $1 billion in either direction is not straightforward. it is relatively codified. concern would be that twitter would say, hollande, we will
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fight this in a legal battle. the other side of that argument is that it could be a long, drawnout and expensive day for twitter to do which it doesn't have the most fantastic balance sheet or finances. elon musk has taken off, according to the jet tracker on twitter. sources tell me he was expected to change his arrival time multiple times. the cao and the cfo of twitter are here. let's see what happens, caroline. caroline: let's see what happens. plenty to come from ed ludlow. . we will be going back to sun valley with the eventbrite chairman in a moment. meanwhile, we will get you back up to speed with the verdict on sunny balwani, you remember him, former president of theranos and ex-boyfriend of elizabeth holmes, the founder of that business. he was found guilty on fraud. the decision comes six months
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after holmes was convicted. valenti faces as long as 20 years in prison. we make the return to sun valley in a few moments. much more ahead from new york and idaho, this is bloomberg. ♪
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caroline: let's get back now to the sun valley conference in idaho, where many of the world's top business leaders are gathered to talk deals. we have a special guest, ed. eddie: we do. in the conversation in and
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around sun valley is around the big-picture, about inflation, recession, private, public markets, startups, venture capitalists. i am delighted to be joined by kevin hart, general partner and cofounder of eventbrite. explain where we are in the world right now. kevin: you know what warden would say about an entrepreneur in the -- what one would say about an entrepreneur or investor, i important enough to have been through a few cycles of up and downs. i think we are really in the beginning act of this process. with the fed stimulus and the action taken in march of 2020, we kind of delayed and pushed out and amplified what is happening now, and that is a very dire outlook on the economy over the coming years. eddie: let's divert to your other role, chairman of
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eventbrite. sun valley captures that, we have come out of a pandemic and no we are concerned about a recession. that people finally, for the first time in a long time, i getting back together. through your eventbrite lens, how do you see the world? kevin: the ceo did a great job of navigating us through the downturn. we have sold 5 million tickets in 2018 and in march 2020, we had negative ticket volume, winning more refunds -- meaning more refunds. julia moved insanely quickly to shore up the business and raise funding in the public markets. we feel like we have been through what has happened last six months, back in march of 2020, and we are seeing the return of the life experience. people are hungry to get out.
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but they are not spending. we have this inflationary cycle. they are not spending what they used to for the large concerts where they may be traveled to or so on, they are going local. that is really what eventbrite primarily covers, is local events in one's community, and they tend to be the lower price point. we are seeing a great surge based on that. brian chesky of airbnb has pointed out a similar phenomenon, and that is that people are going local. that habit has stayed, especially in these inflationary times. staying local is really what it is about, and we think our business is well-positioned for it. ed: it is interesting that you bring up brian chesky and airbnb. we have seen financial crises before, 2000, 2008, and startups came out of that and went on to become giant companies. are there opportunities for the
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the next google, the next airbnb to emerge? kevin: i don't want to sound morose. i get a little bit giddy during these downturns because it separates out the tourists, you know, those could go to investors and raise $5 billion off of a planned, this is one great businesses are formed. people thinking against the grainc are starting companies and glendora in a capital efficient manner and will absolutely see some great businesses. so putting on my capital had, i am seeing a pickup of investments coming in. we are excited to fund the next airbnb. i had the good fortune of being ac inn investor in -- being a
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seed investor in airbnb in 2009. they were scrappy and hungry. it was a recession. they had what it took. ed: talking about survival, i hear a lot of competing things these days. some say keep your powder dry. do not deploy capital because there is volatility in public markets. others say i'm going to go out. i see opportunity. are there any industries or any thematic direction that you are taking with your investment thesis? kevin: a very important question. i have traditionally been really founder focused. like brian, nate and joe at airbnb are is really extraordinary team. ben silbermann of pinterest food just stepped down as ceo, has built a great business. what generally happens at seed stages, you invest in great people and they create is new industries. we are of course very excited about this stage of ai, we are many chapters into the ai
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revolution. there is much more to be done in that. cleantech has risen so quickly and it is very exciting to see something that can actually drive a real business and real results, and also really help us understand and kind of slow this environmental issue that we are facing today. so there is a myriad of spaces. if you just look back at elon musk, who would have ever thought that space would be a segment? eddie: you had to go to elon musk. kevin: who? [laughter] ed: we have to leave it there. kevin hartz eventbrite chairman , and cofounder. >> it was a great interview. thank you so much. let's for a moment, before we returned to ed with his interview on the major league soccer commissioner, don garber,
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it will be the focus of another long-time partnership with the arena, we will be talking about elon musk. let's talk about the deal. apparently twitter is in serious jeopardy. twitter is saying that it intends to close the deal with with musk on agreed terms. they will continue to share information with elon musk around the box. twitter also confirming -- as previously reported by reuters. plenty more on that deal. this is bloomberg. ♪
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caroline: tech giants including
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apple, microsoft, google are facing questions about whether they can hand over user data to authorities pursuing abortion-seekers. bloomberg pause gish dena bass wrote all about this in a fabulous piece for bloomberg. we want to dig in. what are some of the issues you are expecting to pop up? guest fish we have to remember what is different now than free pre-roe. everybody keeps everything online. there is this digital trail of breadcrumbs investigators could use if they wanted to get to someone who had an abortion or someone who helped them, which is increasingly becoming illegal. the problem is all these tech companies have little bits of data on you -- not a little bit, volumes. and the data is in different places and it will be governed by a patchwork of laws. imagine you have a patient potentially in texas, trying to secure abortion drugs from new
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york. maybe they get an emailer receipt to their microsoft account. maybe they searched for drugs in google. those companies are in different states. the question becomes if a court once to get a part of that data, whose laws take precedence? caroline: have to reiterate once again, this is an incredibly politically divided and charts conversation. one third demo of those who answer pew survey's agree we should have an antiabortion law, so we understand that division here. does it stop tech companies from responding and how they would have done previously? guest fish we don't know what they're going to do. the major tech companies haven't been willing to comment to you or me or other reporters who have academic as to whether they will fight these data requests.
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we have some amount of history of what they have done with other types of data requests, each of them major companies. every six month they publish every part of government data requests, how many they have complied with, where they have come from. we know that companies like facebook, apple and others comply with the majority of the requests that they get, but they do fight some. we have had some high-profile cases of apple and microsoft fighting data requests. that they consider to be unlawful. what we don't yet know is whether they will do that in these cases with women who had abortions. caroline: what data is provided? . trackers, is that it -- periods tracker app socks, is that protected? guest fish it does not qualify as far as i know. a lot of things people consider health data, people say i go to my doctor and sign that form, a
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lot of your health data is not under hippa. hey pop -- hippa governance probably a cloud provider if they are providing services storing data for that health plan. a period tracker, your apple watch, your fitbit, that is not hippa data. if you get a court order signed by a judge, you can get a judge to release the data anyway, even if it is governed by hippa. the issue is that we don't have precedence here. people from the frontier foundation and clear an number of years of lawsuits to figure out how this will go. caroline: we thank you so much. this is a good story. let's get to someone who is thinking a lot about these issues, our guest is founding partner at springbank collective building the infrastructure to enable working women to thrive
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across their careers. you were and are secretary clinton's state department. he have a lot of interaction with the administration, but not in the funding environment. this is difficult, right? guest: yes. caroline: and from a difficulty perspective? guest: difficult interval bench avoids. with the fall of roe, we had the digital company stepping in overnight to fill in the care gaps. we saw companies demanding emergency contraception just a couple of days into the overturning of roe. patients are clearly scared about being denied behavior and we have seen hoarding behavior for contraception. we're also starting to see women's health tech players
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also needing to adapt. for instance, may then women's health unicorn added a wallet app to help users calculate the cost of her productive procedures and facilitate reimbursements. at the same time, employers are facing of an amount of uncertainty given the u.s. pause gish fragmented health system. employers have always played a major role in health care. so what company you work for has always mattered for your health care. now where your job is located and where that employer is located will have a really outsized role in the quality of care you can receive, especially as a woman. of a lot of these companies, they are in the earliest days of dealing with with a petitions art of implementing policies to support these workers across hr in health care and across their legal teams. caroline: there has been a lot
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of concerns and worries and lack of legal clarity, but he feels like there is innovation as at this moment. guest: absolutely. women's health care companies are going to continue to innovate. frankly, they have to innovate in this moment. over the last couple years, we have seen a big increase in digital health companies serving the needs of women. into a 21, they raised $4.4 billion, 2x the year prior. to follow on what the reporter who preceded me was discussing in terms of these data issues, i still believe there is a tremendous amount of room for innovation. i also think that uncertainty creates a real challenge for innovation, and right now we have deep uncertainty around how these policies will play out at the state level. this is something i see but in the government and now as an investor, enormous uncertainty about regulation and policy. it can really stifle innovation for new players are trying to
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solve problems, and of course, it creates a lot of burdens for consumers. for instance, the googles and apples of the world when it comes to challenging these data requests, undoubtedly have the money and the lawyers to do so, but imagine if you are a smaller startup, that enormous legal burden or liability could put you out of business. you have been trying to look across the u.s.. but now certainly, are we going to see pockets of health care suddenly just become in new york, in california, other than perhaps the austins or new areas of technology? guest: absolutely. i think these are some of the subsequent implications of the state level which are beginning to play out right now. it might make employment and investment in certain states more or less appealing.
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for instance, we are always excited about innovations in fertility care to make it more accessible and affordable for everyone to build the kind of family they would like to build. if you are an innovator building a venture backed company in fertility care, it just makes sense to build your company in a state like california or new york, which will continue presumably to support these businesses and not create uncertainty around the treatment of embryos and fertility care. that is just one example, but i think we will see that play out across the board. caroline: are you still bullish on the space? guest: i am permanently bullish about improving the lives of women. i will always be bullish about the opportunities in women's health. one of the important things to remember is that when we talk about women's health, that doesn't just equal reproductive health. it never has. there are all sorts of health conditions that are multibillion-dollar markets where it impacts women differently than men, whether it is alzheimer's, heart disease, type two diabetes. it was not until 1986 that women were allowed to participate in
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clinical research and trials. reproductive health is obviously a core component of where we could invest in women's health, but that is just a part of that. we will keep investing. caroline:, from one of the coolest looking barns in new york. taking time out of vacation to spend time with us. fascinating. thank you so much. come back and stay well. cut coming up, as betting becomes the future of sports, we speak with don garber, commissioner of major league soccer, to discuss their new partnership with img arena. that is live from sun valley. this is bloomberg. ♪
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>> this is bloomberg technology. i am caroline hyde in new york. the sun valley conference is underway in idaho where many of the leaders are gathering thereto talk.
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ed ludlow joins us now. people say soccer but we call it football. >> those are my two favorite things. technology and football. we will call it soccer. major-league. mls. you struck a deal with apple. >> they are really thinking hard about where they will be. many of our fans are streaming soccer or football anyway. >> why not a linear tv package
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with some of the names associated with the last decade? >> we will still have some linear deals. we will announce those soon. it is the combination of linear and games we will have in front of the apple pay wall. most exciting for us is the global subscription channel. this will really break new ground. that is somebody watching the game in sun valley. >> apple reportedly paid $250 million. i don't know whether or not you think that is accurate.
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there is demand for mls. >> it is a multibillion-dollar deal over time. this is the perfect way for them to be thinking about the life support experience. what it means is a good question for apple. when we were thinking about aggregating all of our content, our local games, our youth matches, the second division which is called mls text pro, every other market, you have an experience for offenders unprecedented and that is really exciting. >> does it bring you a global audience? >> without a doubt. maybe there is a small argentinian guard that may come to our league. so you could think that you can have as many subscribers and fans in when or barcelona as you would in madrid or wales.
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this will give us that opportunity to expand the breadth and scope. >> soccer varies enormously. you have gone from a situation where you are almost at 29 teams. three stadiums dedicated. where do you invest next? is there another deal to be done? >> it is a great question. 10 to $15 billion over the last number of years. a lot of that is in these unique cathedrals. these 26 stadiums. we opened up a brand-new one in nashville, tennessee. 30,000 fans have sold out every game. now the move is on content. how do you invest in delivering the right experience with our local teams in many ways being
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content delivery producers for our new services? how do you think about the next generation of development of our player pool so that when we have the ability to develop young players and sell them overseas, going to the premier league today. bringing in young players in their prime that are playing overseas. there is going to be an enormous amount of investment to come. >> the men's soccer team go into the world cup, does that boost of the mls? >> absolutely. the interest of our league grows. we see that boost of interest in our energy. the on the fact that we will have so many american players, 40 or 50 of our players will play for mesh -- for national teams. we have players from somebody --
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70 different countries playing. >> there is a chat that bought a club called chelsea which i supported for the majority of my life as you know. he says the premier league is undervalued. our clubs undervalued? >> i think the value is driven but the opportunity is and how people are willing to pay. i do believe our teams are undervalued and how good speak better about the premier league. the future of our league is so bright and there are so many in this opportunities with the overall diversity of our consumer base. the fact that we will have more teams and stadiums. our best years, particularly in
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this partnership with apple. there are so many great intellectual property opportunities that we have not even fully exploited. >> all eyes on american football or soccer. just a pleasure to have you here on the show talking football and tech. >> beautiful. it is as if you transport us there. meanwhile, let's talk about more sports. they displayed a rugged metal casing that may be in the works. they are said to be building a new version of the sports watch. mark joins us now. let's talk about the watch. how big is this market?
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>> always take a step back and figure out why apple would do something like this. if they are going to create a new high-end apple watch, you want it to not only appeal to that specific lot so you have the airpods pros, that lets them charge more money. we will see with this extreme sports addition, we will see more revenue, asp's, we will see the average sales price go up. i think that is why they are doing this. that market is not so big. if you look at it more as an apple watch pro then an extreme sports addition, not only will you appeal to the market you mentioned but you will appeal to the affluent apple customer who is willing to spend more on the advanced product. >> talk to us about what features they are trying to lure
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people in with. >> you have the longest battery life ever. the biggest display ever on an apple watch, you will probably have a titanium case. this is something far more durable. three or four times more durable. you will see more shatter resistant screens, how many times people have knocked their apple watch into a doorknob or something and cracked that screen. you will see that as well as a new body temperature temperature sensor. -- body temperature sensor. >> what about other types of watches? >> this will also be the first
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time apple will have three distinct new models. you have a mid tier watch. there will be the series eight. the pro version will also get that body temperature sensor i talked about in an updated processor. then you will get a new apple watch sc that will cost around 300 or $350. they first launch that in 2020. this will be an update to that model to replace the low in series three. that one will get the same processor as the other two watch as i mentioned. that would be a speed upgrade over the current chip. >> always there with the latest and greatest hits. we thank you. coming up, as investors remain pretty cautious on digital assets, crypto winters will be settling in and we will speak on
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the speed -- a state bitcoin startups. this is bloomberg. ♪
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>> pick one is higher, 21,000 on the day. but where are we in terms of the nuances. we are there -- we are worried a lot about the crypto lenses out there but let's talk to the bitcoin one in particular. remind us, you are a big firm. you are focused on that part of
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the crypto sphere. how are your startups fearing at the moment? >> bitcoin founders tend to be fairly responsible. what they are doing now is finding wages -- finding ways to take advantage of it. there are two things about it. a bear market is where you get more resources to dedicate the building because you are not struggling to keep your head above water but the second thing we can do in a bear market is to take time to really dive into the engagement and a job -- adopt metrics and start to understand what users are saying about the products and protocols. that will be the experience of this market for the top founders in the space. collect that data, what is it
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telling you about when we exit some sort of crypto winter? what will people want? what sort of real use cases will be billed? >> people want the space to continue to mature. some of the collapses we are seeing and companies that were making promises they could not keep around your products are starting to drive home the point of people holding digital assets that there needs to be more accountability. it is possible on bitcoin and bitcoin was to allow for transparency in the ecosystem because you know the bitcoin blockchain is a public ledger. as an example of something the customers are starting to demand or should, you can ask for people holding your big going to be able to improve those reserves. we know some of the platforms promised the london-based yield returns. some of those platforms are now
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telling their customers they don't have the things they said they had. -- the funds they said they had. with bitcoin, you can demand exchanges or other platforms holding your assets to prove their software is available and customers are beginning to demand it. the first company to launch a product here is for us. this is something we see in every bear market. there was one of bitcoin possible core promises. you would not have to rely on stuff like this. we see the realization if you are not holding your own funds. we see consumers recognize the value of that and send funds to
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another portfolio company. this base is a little bit more mature. there are several options you can use. >> what about those lending protocols? what ends up being what flourishes out of that? >> the concept of producing yields or making promises that can't be backed up with economic activities, i hope that is dead. what we saw in this last bull market was the concept of yield generated with a complete lack of economic activity and in fact we saw leaders explained it as putting money into a black box.
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this is something they can't be secured over the long-term. the yield in that way, hopes and dreams, i hope that is dead. you will see products mature based on economic activity. this would be the ability to create yields by lending out your position on the network. >> we referenced that black box on our very own podcast. these platforms that have taken a tumble. are you worried? i know you have seen bear markets before but with a lack of activity we are seeing on the space, does that were you in any way? >> in terms of entrepreneurial activity, we are seeing a flourishing. we have these really lovely
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tailwinds provided. as well is something on lightning which is the introduction of other digital assets. but all of this including people who have not even started yet. i think of it as a similar opportunity as cloud and mobile which we know carries companies like whatsapp and uber. that opportunity exists today for innovators. >> great to catch up with you. thank you. coming up, the best embers intact continue. we will be hearing from one of them. we will hear about the recession risk and consumer confidence. that is next, this is bloomberg.
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>> >> we are back. asking about the current economic climate. >> it is a year that is atypical. inflation is on the rise. you have a very uncertain marketplace. cash is really king. i think it is much more about partnerships and having partnerships that get extended. there has never been a time like this in the last 30 years. we have had so many conflating factors so the desire to partner and have more conversations is higher than ever. >> you have had a 60% or so to
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clamber so have many fintech players here. how do you navigate that turmoil and public market? you very recently decided to go public. >> we are sticking to our strategy. we found great success despite the fact that our student loan business has been negatively impacted. we can only grow 50% last year. we will increase our profitability. we are seeing really strong growth in products per member. hopefully that will get value on the appetite for risk and long-term orientation. it is hard for investors because you're not really sure if we will have a soft landing or a more challenging economic environment. we are making sure we understand what we are prioritizing.
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>> i want to pick your brain a little bit on cryptocurrencies. you have a lot of young customers that are looking at ways of borrowing, saving, spending, investing. you announced new crypto product . you see pausing withdrawals or otherwise that have impacted the consumers really deeply. how do you think about consumer protection in this space? >> our strategy is to be one stop shop for consumer financial services. all of this in addition to investing as you mentioned. in investing, we also want to be a one-stop shop. we offer fractional shares. her own etf's and the ability to buy 30 from disease. when we launch them, we really put every time we got to buy cryptocurrencies on our platform , a warning that says this is an
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unproven asset. it is highly risky and you could lose all your money. there is an appetite want to invest in these more risky assets. we do that every time. >> what about plain old stocks? do you think this meme stock frenzy is over? even the general interest in that marginal buyer? the young person looking to invest in that market? >> they are focused on the ups and downs of volatility. we do recurring investments. we offer this so they can buy at a low price point. we have people continuing to invest in the marketplace despite the fact that the market's down. over 74% of our members say they will continue investing more because they have not invested enough in the real life.
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click that does it for this edition of bloomberg technology. don't forget to check out our podcasts. this is bloomberg. ♪
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