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Lyft Earnings Miss Estimates After Global Expansion Push · Bloomberg Intelligence

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  Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
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  Speaker 2: A lot of earnings flowing out here, including some of
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  Speaker 2: the tech companies and some of the.
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  Speaker 3: Online travel places as well.
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  Speaker 2: So we want to check in with Man deep Seeing,
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  Speaker 2: global tech research head for Bloomberg Intelligence, joining us here. Hey,
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  Speaker 2: Mandy ip I saw we talked about Uber a day
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  Speaker 2: or so ago and we had the LIFT numbers came
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  Speaker 2: out at see the stock company kind of miss estimates here.
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  Speaker 2: Give us a sense of what is going on operationally
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  Speaker 2: with Lift. We know things are going pretty darn wall
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  Speaker 2: at Uber, how about it Lyft? And where do they
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  Speaker 2: fit in going forward?
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  Speaker 4: Do you think.
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  Speaker 5: I mean all these companies right now, I have to
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  Speaker 5: look catch you know the scale of avay rides from
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  Speaker 5: Ramo and how fast Wemo could you know? Go from here?
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  Speaker 5: Right now they are doing five hundred thousand rides across
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  Speaker 5: the US and more than ten cities, and I think
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  Speaker 5: that's where you're starting to see an impact. I mean,
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  Speaker 5: like Uber and Lyft still are growing double digits, but
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  Speaker 5: when you look at the take rates, you're starting to
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  Speaker 5: see some sort of pressure. And they've been talking about,
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  Speaker 5: you know, partnerships and alliances. In the case of Lift,
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  Speaker 5: they have partnered with Weamo in one city, Nashville, and
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  Speaker 5: they're partnered with Baidu in London. But that's not going
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  Speaker 5: to be enough if we're talking about Weamo ramping up
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  Speaker 5: the way they have been. They've almost doubled their rides
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  Speaker 5: over the past twelve months. So that's where you will
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  Speaker 5: start to see challenges emerge when it comes to the
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  Speaker 5: business models of both Uber and Lyft, which has been
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  Speaker 5: asset light so far, but they have to start thinking
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  Speaker 5: about how they add more av capacity on their platform
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  Speaker 5: men deep.
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  Speaker 6: Another thing that caught my eye is management saying premium premium, right,
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  Speaker 6: they're growing thirty five percent? Is this becoming a real
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  Speaker 6: margin and revenue driver for the company. All I know
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  Speaker 6: is when I take Uberlyft, I pick the cheapest option,
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  Speaker 6: but I guess some people take the premium ones.
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  Speaker 5: Yeah. Look, they have segmented the market really well. In
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  Speaker 5: the case of Uber, I would say they have done
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  Speaker 5: a better job in terms of segmenting the market and
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  Speaker 5: layering on subscriptions. You know, for that kind of service
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  Speaker 5: where somebody wants a black suv, then you know they
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  Speaker 5: prioritize the customers who is a subscription user. And in
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  Speaker 5: the case of Lyft, they talked about, you know, partnering
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  Speaker 5: with Chaseaphire and you know airlines to have those sort
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  Speaker 5: of alliances and all that is great I think in
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  Speaker 5: terms of driving engagement and sticking because for the most part,
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  Speaker 5: people used to just compare prices and that's how they
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  Speaker 5: were arbitrodging, you know, whichever one had the lower cost
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  Speaker 5: when it comes.
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  Speaker 3: Should somebody lift just particular right, should lift to sell it?
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  Speaker 2: Soft mandeep. It just doesn't feel like they can scale
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  Speaker 2: here visa vi uber. What do we do with this thing?
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  Speaker 5: Well, I think down the line, I do expect you know,
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  Speaker 5: one of the aavy platforms, whether it's Tesla or Vemo,
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  Speaker 5: leveraging someone like Lyft or even a door Dash which
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  Speaker 5: has an partnership right now with Lift in terms of
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  Speaker 5: cross sell opportunities between food delivery and mobility. So DoorDash
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  Speaker 5: is a great example of a company that has scaled
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  Speaker 5: really well on their delivery side is making that pivot
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  Speaker 5: to agentic AI use cases and so you know, for them,
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  Speaker 5: it would make a ton of sense to expand in
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  Speaker 5: to you know, ride sharing with an acquisition, as they
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  Speaker 5: have done with their acquisition of delivery in the UK.
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  Speaker 5: So I do think, you know, that combination makes a
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  Speaker 5: ton of sense.
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  Speaker 6: And we can go to Airbnb because they also raise
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  Speaker 6: their full year outlook, but profits they'll miss because spending jump.
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  Speaker 6: What do you make of the balance they're doing right now?
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  Speaker 6: Because I know they're expanding into hotels, airport pickups and
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  Speaker 6: a lot of other add on services.
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  Speaker 5: I mean Airbnb's big advantage has been that they get
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  Speaker 5: a lot of direct traffic and they are aware, you know,
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  Speaker 5: similar to what Uber is on the ride sharing side.
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  Speaker 5: So the problem they're trying to solve for is the
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  Speaker 5: saturation in that alternative accommodation's market, so they had to
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  Speaker 5: expand in new categories. It sounds like hotels and possibly
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  Speaker 5: you know, layering on some ride sharing services or airlines
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  Speaker 5: would make a ton of sense. They also have to
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  Speaker 5: cater to this agent take shift that is happening. So
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  Speaker 5: I think platform level, there will be some changes, but
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  Speaker 5: clearly they have the stickiness when it comes to the
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  Speaker 5: host they have on the platform and the inventory they
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  Speaker 5: have when it comes to you know, exclusivity on Airbnb's platform.
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  Speaker 2: So Airbnb, I mean, they actually boosted their sales outlook,
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  Speaker 2: but Expedia had some problems. There Is that an Expedia
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  Speaker 2: specific issue or is that just people doing more on
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  Speaker 2: Airbnb maybe less on Expedia.
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  Speaker 5: I mean they all these companies have a big catalyst
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  Speaker 5: in FIFA World Cup, you know, for the second half,
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  Speaker 5: and we know these big events drive a lot of
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  Speaker 5: demand when it comes to you know, platforms like Airbnb,
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  Speaker 5: even you know, Uber and Lyft will get a boost
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  Speaker 5: during that quarter. So there's no doubt that, you know,
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  Speaker 5: no matter what the macro situation is with higher gas
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  Speaker 5: prices and what's going on, the FIFA World Cup will
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  Speaker 5: be a big event and all these companies should do well,
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  Speaker 5: you know, in terms of catering to that demand.
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  Speaker 2: I mean, the Jersey Shore Mansion is only about an hour,
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  Speaker 2: hour and ten minutes away from Wow MetLife Stadium.
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  Speaker 6: I'd love to visit.
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  Speaker 3: Y check it out.
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  Speaker 6: What about Okay, So airlines and other travel companies are
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  Speaker 6: warning about softer demand, but Airbnb sounds pretty optimistic. Why
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  Speaker 6: do you think it's holding up when you made a
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  Speaker 6: point earlier that they have direct access to these companies,
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  Speaker 6: whether airlines or hotels.
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  Speaker 5: Yeah, look, I think when it comes to the supply side,
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  Speaker 5: Airbnb still has some exclusive supply. Like you could say,
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  Speaker 5: you know, I would go across different hotel chains depending
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  Speaker 5: on whoever is offering a lower price. But when it
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  Speaker 5: comes to price elasticity around some of the inventory that
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  Speaker 5: Airbnb has which you cannot find anywhere else, that's where
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  Speaker 5: Airbnb has an advantage, and especially for larger groups. And
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  Speaker 5: you know, if you're talking about big events, that certainly
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  Speaker 5: should hold up much better. But you are seeing some
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  Speaker 5: softness and you know travel overall, which is why you
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  Speaker 5: see pressure on Expedia and you know some of the
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  Speaker 5: other travel names.
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  Speaker 3: Stay with us.
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  Speaker 7: More from Bloomberg Intelligence coming up after this.
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  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
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  Speaker 3: More earnings.
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  Speaker 2: We got some more of the restaurant companies reporting earnings here.
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  Speaker 2: We want to get to with Michael Halen, senior restaurant
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  Speaker 2: and food service analysts for Bloomberg Intelligence.
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  Speaker 3: Hey, Mike, let's start with a name we don't talk
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  Speaker 3: about too much.
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  Speaker 2: Which is the company or one of the companies that
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  Speaker 2: provides the actual food for the restaurants. You see all
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  Speaker 2: the trucks double parked is a deliver food to the
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  Speaker 2: various restaurants in town. US Foods. Just about that company
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  Speaker 2: and what did they report?
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  Speaker 4: Yeah, you know, more of the same.
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  Speaker 8: I mean, you know, this is one of the best
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  Speaker 8: run food service distributors in the country. You know, they're
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  Speaker 8: they're looking to grow sales a little bit through M
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  Speaker 8: and A, but also with improved technology for their customers.
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  Speaker 8: They're shifting to a one hundred percent commission based sales
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  Speaker 8: plan to kind of motivate them to sell certain things,
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  Speaker 8: but particularly branded products which can can boost margins. You know,
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  Speaker 8: just a really well run company that's taking share slowly
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  Speaker 8: and steadily in the food service business.
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  Speaker 2: So, I mean, again, US Food's holding. This is a
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  Speaker 2: company that I rarely look at, but I should because
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  Speaker 2: I see their trucks everywhere. Nineteen billion dollar market cap.
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  Speaker 2: It's got about thirty thousand employees based in Rosemont, Illinois,
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  Speaker 2: but they provide a food to a lot of restaurants
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  Speaker 2: around the country. Again, the stocks of fourteen percent a
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  Speaker 2: year to date, up twenty percent on a trailing twelve base.
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  Speaker 6: It's a great report. Actually, can you talk to us
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  Speaker 6: about international growth? Is it becoming a bright spot and
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  Speaker 6: can that offset some weakness they're seeing in their business?
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  Speaker 8: So US Foods is one hundred percent US based, Yeah,
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  Speaker 8: so they are. They've done a good job, like I said,
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  Speaker 8: of taking share here in the United States. That's been
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  Speaker 8: their focus. That's one of the that's one of the
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  Speaker 8: you know, one reason why investors do like this name
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  Speaker 8: because the US economy has been more resilient than say
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  Speaker 8: a place like Europe, especially with the higher inflation that
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  Speaker 8: they've seen over there. Also, this company is pretty well
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  Speaker 8: positioned in market downturns, so when people tend to cut back,
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  Speaker 8: you know, they have a larger percentage of their business
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  Speaker 8: that's dedicated to government, education, customers, hospitals and those types
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  Speaker 8: of customers have these FI and dollar cost contracts, which uh,
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  Speaker 8: you know, basically our index to inflation. So as inflation
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  Speaker 8: goes up, you know, margin dollars are protected and those
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  Speaker 8: businesses you know that I mentioned typically don't decline when
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  Speaker 8: the overall economy declined, so this tends to be a
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  Speaker 8: safer bet when you know the restaurant industry falters.
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  Speaker 2: We had a big debate internally here this morning on
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  Speaker 2: Bloomberg Surveillance about best French Fries and Wendy's got a
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  Speaker 2: lot of support here. Talk to us about the Wendy's
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  Speaker 2: profit earnings release they had.
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  Speaker 8: Yeah, Wendy's was a disaster. It's been a disaster all
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  Speaker 8: through you know, throughout last year. There was some hopes
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  Speaker 8: for a turnaround and results or maybe just you know,
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  Speaker 8: from from bad to less bad, and it didn't materialize
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  Speaker 8: in the quarter.
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  Speaker 4: You know, they're saying the right things.
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  Speaker 8: On the call, but this company has had a lot
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  Speaker 8: of negative momentum. You know, Chicken was always a big
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  Speaker 8: part of their offering and now everybody's in that game.
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  Speaker 8: Discounting is ramping up across the industry. This is the
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  Speaker 8: most aggressive I've seen McDonald's in my career. So all
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  Speaker 8: of that is going to make the turnaround at Wendy's
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  Speaker 8: much more difficult to execute.
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  Speaker 2: I'm a big fan of the baconator too, so I
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  Speaker 2: hope they pulled through here one more before we let
• 11:28
  Speaker 2: you go here. Texas Roadhouse. I know, listen reading your
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  Speaker 2: research in the past, they're trying to strive value here,
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  Speaker 2: and that seems like a pitch that would work in
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  Speaker 2: today's economy.
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  Speaker 4: Yes, you're right, and it does.
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  Speaker 8: And you know, you know, the way we look at
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  Speaker 8: value is what you get for what you pay.
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  Speaker 4: And nobody offers you more value on the plate than
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  Speaker 4: Texas Roadhouse.
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  Speaker 8: You go there, you get unlimited bread, you get massive portions,
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  Speaker 8: all for a reasonable cost.
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  Speaker 4: You know.
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  Speaker 8: Look, management said that they're seeing some people trade down
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  Speaker 8: to cheaper cuts of beef or even to chicken and pork.
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  Speaker 8: They're cutting back on drinks, but they're making it up
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  Speaker 8: in traffic. People are and they go to Texas Roadhouse
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  Speaker 8: because they know they're going to get a great experience,
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  Speaker 8: and so they're not cutting back on their visits to
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  Speaker 8: Texas Roadhouse.
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  Speaker 4: Clearly in the numbers, we're.
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  Speaker 8: Seeing cutbacks to Wendy's and a lot of other restaurant chains,
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  Speaker 8: and maybe some trade down to the grocery store.
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  Speaker 4: But if people are.
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  Speaker 8: Going to a Texas Roadhouse once a quarter, once every
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  Speaker 8: other month, they're not coming back on that visit.
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  Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.
• 12:38
  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
• 12:42
  Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android
• 12:45
  Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever
• 12:48
  Speaker 1: you get your podcasts, or watch us live on YouTube.
• 12:52
  Speaker 7: Paul, do you go golfing regularly? Is that a weekend
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  Speaker 7: thing for you?
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  Speaker 4: Yes?
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  Speaker 2: And I'm wearing my Canoe Brook which is my club shirt.
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  Speaker 2: I got the belt from Garden City Golf Club. So
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  Speaker 2: I'm all in, have been all that life, but golf's not.
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  Speaker 2: Actually now kind of cool and it's growing like crazy again.
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  Speaker 7: I know, before the pandemic it felt like it was
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  Speaker 7: kind of dying a little bit.
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  Speaker 3: And now social media is all over.
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  Speaker 2: These influencers are all over the game of golf.
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  Speaker 4: Really.
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  Speaker 2: Oh, huge audiences here and getting huge money and the
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  Speaker 2: PGA Tour notices, the Lift Tour.
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  Speaker 3: Notices, although the lead tours dying, Yeah, but it was.
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  Speaker 3: It was part of the Lift Tour's birth was because
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  Speaker 3: of social media.
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  Speaker 7: Yeah, yeah, yeah, that's a good point. All right, Well,
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  Speaker 7: let's talk to someone who's capitalizing on all of that.
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  Speaker 7: The rebirth of golf. He is Brian Cox. He's global
• 13:35
  Speaker 7: vice president of Scotch Whiskey at Bacardi, and he's here
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  Speaker 7: to talk to us about why his brand and other
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  Speaker 7: luxury brands are increasingly aligning themselves with golf culture. Right now, Brian,
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  Speaker 7: good to speak with you. What is golf culture and
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  Speaker 7: how has it changed? As Paul mentioned, it's now something
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  Speaker 7: that lives on in social media. Things go viral in
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  Speaker 7: a way that they didn't before.
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  Speaker 9: That's billion obviously two passion of mind golf and Scotch Whiskey.
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  Speaker 9: I think the luxury brand sector has really paid attention
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  Speaker 9: to the evolution of golf. As you alluded to a
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  Speaker 9: second ago, it was really the pandemic that grew the
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  Speaker 9: built in audience of golf from around twenty four million
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  Speaker 9: people that followed or played the game in the US
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  Speaker 9: to about forty million today. So it's just a massive
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  Speaker 9: inbuilt audience. It's also become the profile of the audiences diversified.
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  Speaker 9: It's become younger, young adults, much more accessible. It's also globalized.
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  Speaker 9: You're REFERRINGTVE golf for example, but Japan huge market is booming.
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  Speaker 9: Also in India and these all happen with the US
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  Speaker 9: to be great Scotch whiskey and also luxury goods markets.
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  Speaker 9: I'd also say at the same time, the audience has
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  Speaker 9: stayed fairly affluent, so that's why you're seeing luxury and
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  Speaker 9: lifestyle brands really lean in the factors. Of course, as
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  Speaker 9: you will well know at Garden City you've got the
• 15:04
  Speaker 9: famous nineteenth pole, So golf in particular goes beyond just
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  Speaker 9: what happens on the course. So it's really that lifestyle
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  Speaker 9: social connection moment that allows us to really have a
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  Speaker 9: role in that area.
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  Speaker 2: So how are you, guys a doer Scotch, how are
• 15:24
  Speaker 2: you kind of trying to leverage that audience.
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  Speaker 9: Well, we've now in our sixth year been sponsoring the
• 15:32
  Speaker 9: USGA and the US Open as it's official Scotch Whiskey.
• 15:37
  Speaker 9: Amazing partners, great tournament, great reach, big TV audience, and
• 15:43
  Speaker 9: we use these kind of tempole moments as we call them,
• 15:47
  Speaker 9: to really build integrated marketing programs around. So we have advertising,
• 15:51
  Speaker 9: we have corporate hospitality, entertaining clients and influencers. You're talking
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  Speaker 9: about social media a second ago, so that's a really
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  Speaker 9: important the whole online digital aspect of golf nowadays and
• 16:06
  Speaker 9: it overlaps between the sport against again the lifestyle. We
• 16:10
  Speaker 9: have also some fashion collaborations. We work with Peter Millar,
• 16:15
  Speaker 9: We've worked in the past with other fashion brands, and
• 16:18
  Speaker 9: then we run our own promotions. So there's an aspect
• 16:21
  Speaker 9: of integrating retail and country clubs. Of course, because every
• 16:27
  Speaker 9: country club pretty much has a nineteenth old the famous Spa,
• 16:30
  Speaker 9: so that's very relevant. And every year to celebrate the
• 16:35
  Speaker 9: US Open, we come out with a limited edition a
• 16:38
  Speaker 9: nineteen year old, and then we have also some very
• 16:40
  Speaker 9: innovative serves and RTDs which address a slightly less traditional
• 16:45
  Speaker 9: you might say, audience.
• 16:47
  Speaker 7: How are you integrating your brand with golf in a
• 16:50
  Speaker 7: way that changes from what it was before the pandemic.
• 16:54
  Speaker 7: I mean, you know, any golf tournament has lots of
• 16:56
  Speaker 7: brands showing up everywhere, but what is what is Doors
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  Speaker 7: doing that's different that kind of makes it look like
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  Speaker 7: it's twenty twenty six as opposed to twenty sixteen.
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  Speaker 9: That's a big well for starts we're about, you know,
• 17:13
  Speaker 9: we play a role as a social catalyst. It's you know,
• 17:18
  Speaker 9: we've got the heritage of Scotland behind us and so
• 17:21
  Speaker 9: this way of connecting with consumers of opening up the games.
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  Speaker 9: We partner with organizations such as Five Iron Golf, You've
• 17:31
  Speaker 9: got Top Golf and so forth as well, and so
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  Speaker 9: you can see how we can monomate and activate beyond
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  Speaker 9: the actual course itself. We also actually promote the tournament
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  Speaker 9: through our advertising, so that's about gaining I guess, broader
• 17:46
  Speaker 9: awareness for the actual event itself. And then we do
• 17:50
  Speaker 9: things like every year we have the Duo's Lemon Wedge,
• 17:54
  Speaker 9: which is the official cocktail of the US Open that's
• 17:58
  Speaker 9: served as an artea, which means ready to drink and
• 18:02
  Speaker 9: can we sell about seventeen well not us, but the
• 18:06
  Speaker 9: venues will sell about seventeen thousand of those. Per tournament
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  Speaker 9: we serve around thirteen thousand cocktails. So it's a way
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  Speaker 9: of expanding the use such occasions and consumptions, which is
• 18:20
  Speaker 9: really cocking in on and that brings in a whole
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  Speaker 9: new cohort of fans.
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  Speaker 2: Actually, Brian, you mentioned earlier the impact of social media influencers,
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  Speaker 2: and again maybe my feed my algorithm just feeds me
• 18:33
  Speaker 2: these guys all the time, but there's a lot of
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  Speaker 2: them doing some really great content, getting a list stars
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  Speaker 2: to come on their program, whether they're having a round
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  Speaker 2: of golf somewhere with Lebron James or something else.
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  Speaker 3: How do you play into that?
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  Speaker 9: That's sure there's I think one of the big drivers
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  Speaker 9: of the popularity of golf is how other sports people
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  Speaker 9: have really lent in. I think there's a huge NFL,
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  Speaker 9: an NBA following of golf of players that actually, in
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  Speaker 9: the time of will will participate in the game. It's
• 19:09
  Speaker 9: the it's their hobby, it's their passion point, and something's
• 19:12
  Speaker 9: clicked in this sport in the way that it's it's
• 19:15
  Speaker 9: very much about, as you will know, plane with or
• 19:19
  Speaker 9: against yourself, but it also connects you to others. So
• 19:22
  Speaker 9: there's a dynamic in culture here. I think that is
• 19:26
  Speaker 9: driving this, and it's amazing to see how other sports
• 19:30
  Speaker 9: folks from other disciplines are actually fueling this.
• 19:35
  Speaker 3: Stay with us.
• 19:36
  Speaker 7: More from Bloomberg Intelligence coming up after this.
• 19:41
  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
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• 19:56
  Speaker 2: Intel up seven point seven today up to hundred twenty
• 20:00
  Speaker 2: percent year to date, a four hundred and sixty percent
• 20:03
  Speaker 2: on a trailing twelve month basis. For those of us
• 20:05
  Speaker 2: old enough to remember Intel in the eighties and nineties
• 20:09
  Speaker 2: and then.
• 20:09
  Speaker 3: What happened in between, that's something.
• 20:11
  Speaker 2: And my boy Frank Yuri, my running buddy from Salomon Brothers,
• 20:14
  Speaker 2: he's retiring from as chairman of the board in a
• 20:17
  Speaker 2: couple of days.
• 20:18
  Speaker 3: He's had a heck of a run here to finish
• 20:19
  Speaker 3: up his career.
• 20:20
  Speaker 2: We want to talk to Sarah Fryar Bloomberg and managing editor.
• 20:24
  Speaker 2: What's going on at Intel? Have they finally.
• 20:26
  Speaker 3: Gotten I guess the AI tailwind? It sure looks like it.
• 20:31
  Speaker 10: Well, there's that, but it's actually a you know, an
• 20:34
  Speaker 10: even bigger process by Liputan, the new CEO. He has
• 20:38
  Speaker 10: spent the last year talking to all of these other
• 20:43
  Speaker 10: major leaders in tech and in the world and getting
• 20:46
  Speaker 10: them on his side. Right, So he's formed an alliance
• 20:49
  Speaker 10: with President Donald Trump. The US is now a major
• 20:51
  Speaker 10: investor in Intel. He has Elon Musk saying that they're
• 20:54
  Speaker 10: going to partner on building factories apples. It has talked
• 20:59
  Speaker 10: about potentially using Intel in video and videas, Jensen Wang
• 21:05
  Speaker 10: has explained that they think that the CPUs that Intel
• 21:10
  Speaker 10: makes are going to be back in demand during the
• 21:12
  Speaker 10: AI boom. So all of those factors have led to
• 21:15
  Speaker 10: this incredible tear in Intel stock, where it's back to
• 21:19
  Speaker 10: the level we really haven't seen since the dot com boom.
• 21:22
  Speaker 7: It is truly remarkable when you look at the advances.
• 21:25
  Speaker 7: I mean, the gain in Intel has eclipsed the gain
• 21:28
  Speaker 7: in Micron. And you know, Paul, you and I have
• 21:30
  Speaker 7: talked about how Micron just went on this bananas hair
• 21:33
  Speaker 7: because of the lust for memory chips, and Intel has
• 21:36
  Speaker 7: surpassed all of that. You mentioned, Sarah that the US
• 21:38
  Speaker 7: government has a stake in Intel. It's a five and
• 21:41
  Speaker 7: a half percent stake right now, the third biggest shareholder
• 21:43
  Speaker 7: after Blackrock and Vanguard, which of course represents Index Funds.
• 21:48
  Speaker 7: Is the US government an activist shareholder Intel? I mean,
• 21:52
  Speaker 7: is there pushing by the US government towards what Intel
• 21:56
  Speaker 7: should be doing?
• 21:58
  Speaker 2: Well?
• 21:58
  Speaker 10: I think it definitely adds to the momentum of Intel.
• 22:02
  Speaker 10: I think there's there's, you know, this sense that if
• 22:05
  Speaker 10: you support Intel, you support American manufacturing. And Donald Trump
• 22:10
  Speaker 10: had certainly celebrated himself as the you know person who
• 22:15
  Speaker 10: who struck this deal. But what Ian King's reporting reveals
• 22:18
  Speaker 10: in this story is that it really took some convincing
• 22:21
  Speaker 10: on the part of his allies. He had people in
• 22:24
  Speaker 10: the industry, including Michael Dell, calling Donald Trump asking him
• 22:29
  Speaker 10: to give Li Blutan a chance, and then once the
• 22:31
  Speaker 10: two of them met, Li Blutan was able to convince
• 22:35
  Speaker 10: Trump to to really bet on the company in an
• 22:41
  Speaker 10: unusual way. I mean, this is very unprecedented. But that
• 22:44
  Speaker 10: led to a lot of these other stakes that helped
• 22:47
  Speaker 10: Intel balance sheet. Now what Ian reveals in the stories
• 22:53
  Speaker 10: is there's the second phase of the turnaround that needs
• 22:55
  Speaker 10: to happen. For all of the optimism, for all of
• 22:58
  Speaker 10: the work that's been done on the external perception that
• 23:02
  Speaker 10: Intel can achieve a place of prominence in the AI boom,
• 23:05
  Speaker 10: that it really can deliver on returning to prominence, there's
• 23:13
  Speaker 10: still a lot that needs to be fixed in terms
• 23:15
  Speaker 10: of the quality of its products and the quality of
• 23:17
  Speaker 10: its factories. And that's what happens next.
• 23:20
  Speaker 3: So what is the thinking out there in Silicon Valley?
• 23:22
  Speaker 4: Sairer?
• 23:23
  Speaker 2: Is this something that again one one could argue that
• 23:25
  Speaker 2: a lot of the stock price appreciation was kind of
• 23:28
  Speaker 2: by the rumor. Now the questions they have to deliver
• 23:31
  Speaker 2: is the expectation that they will be.
• 23:33
  Speaker 3: Able to do that well.
• 23:35
  Speaker 10: I think now that Lipichan has has these allies that
• 23:39
  Speaker 10: are counting on him to do it, he's well set
• 23:42
  Speaker 10: up to But you know, in speaking with us in
• 23:45
  Speaker 10: the first interview he's given as the EO to a
• 23:48
  Speaker 10: news outlet, he acknowledged that he still has a lot
• 23:52
  Speaker 10: of work to do. He still has to build eventually,
• 23:54
  Speaker 10: still recruiting leaders that he trusts. And what we learned
• 23:59
  Speaker 10: from conversations with current and former employees is the way
• 24:02
  Speaker 10: that he leads is very different than how Intel is
• 24:05
  Speaker 10: used to working. He's a high level thinker. He's not
• 24:08
  Speaker 10: going in on the on the detailed. He picks people
• 24:11
  Speaker 10: that he believes in and then backs them the same
• 24:14
  Speaker 10: way you might see in venture capital investing. You know,
• 24:18
  Speaker 10: he's on many company boards. He has a long history
• 24:20
  Speaker 10: with that, but that could be risky for a company
• 24:23
  Speaker 10: like Intel, where the devil really is in the details.
• 24:27
  Speaker 10: The chips need to be at the right quality to
• 24:30
  Speaker 10: sustain those customer deals, to even get those major customers
• 24:34
  Speaker 10: on board, get them to take a bet on the
• 24:36
  Speaker 10: company so they have a lot of work to do
• 24:38
  Speaker 10: in the actual manufacturing, the actual design to to not
• 24:44
  Speaker 10: have to outsource it as much as they've been doing,
• 24:47
  Speaker 10: to bring it back in house, and through that they
• 24:50
  Speaker 10: can that they can.
• 24:51
  Speaker 4: Deliver very quickly.
• 24:53
  Speaker 7: Sarah Liputan has only been CEO of Intel for about
• 24:56
  Speaker 7: one point two years, not long at all, but it
• 24:58
  Speaker 7: feels like a long time. How patient are investors willing
• 25:02
  Speaker 7: to be with him?
• 25:03
  Speaker 10: I think as long as what we're hearing about CPUs
• 25:08
  Speaker 10: in the AI boom being really necessary, if that continues,
• 25:14
  Speaker 10: I mean, that's going to be definitely a positive boost
• 25:17
  Speaker 10: for them. They just have to really get that business.
• 25:20
  Speaker 10: They have to get it, and they can't let it,
• 25:23
  Speaker 10: can't feed it to rivals, and then they'll be okay
• 25:25
  Speaker 10: for a little while and they'll buy him time to
• 25:28
  Speaker 10: get everything else right.
• 25:31
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