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Bloomberg Intelligence: Nvidia Surges after Blowout Results · Bloomberg Intelligence

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Speaker 3: The story that does not have any issues with its
0:28
Speaker 3: network is in Vidia again posted a big print last
0:31
Speaker 3: night as a Nora's just reporting, and everybody was focused
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Speaker 3: on the revenue guidance, and they did not disappoint there
0:37
Speaker 3: given a revenue guidance that was substantially above where the
0:40
Speaker 3: street was yet again, and that's kind of all the
0:43
Speaker 3: bulls needed here. So Emily, let's bring in Kun John Sohani.
0:47
Speaker 3: He's a senior analyst. He covers the semi conductors for
0:49
Speaker 3: Bloomberg Intelligence. He joins us via zoom. He's in San Francisco. Kunjohn,
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Speaker 3: you're the grizzled veteran. You see these semi conductor companies
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Speaker 3: come and go. What you make of Nvidia last night?
1:00
Speaker 4: I mean, look for any earning surprise from Nvidia is
1:02
Speaker 4: no longer a surprise. We have come to sort of
1:04
Speaker 4: expect this to be a new norm. But there were
1:06
Speaker 4: a lot of positive reassuring things. On the supply side,
1:10
Speaker 4: we saw supply coming up really strong. More importantly, supply
1:14
Speaker 4: getting diversified and the benefits for which we're seen in
1:17
Speaker 4: their gross margin, which beat the estimates. But more important
1:21
Speaker 4: was the assurance that demand continues to stay strong and
1:25
Speaker 4: they expected to stay strong in twenty twenty four, and
1:28
Speaker 4: not just from the large cloud players. We all are
1:30
Speaker 4: aware of how much money they're spending, but Remand's strength
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Speaker 4: was broad based across their enterprise customers, across different verticals,
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Speaker 4: so that really reassures us for the twenty twenty four
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Speaker 4: What did you.
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Speaker 5: Make of the CEO's statement that Generative AI has hit
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Speaker 5: the tipping point. I saw that headline and I didn't
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Speaker 5: actually really understand what that meant. So what did you
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Speaker 5: think of that?
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Speaker 4: I mean, look, it's really Jensen. If you have been
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Speaker 4: following the company for the past ten years, at every junction,
1:59
Speaker 4: that's what his messaging always is in whatever they're working on.
2:03
Speaker 4: So but apart from that, I would really, you know,
2:06
Speaker 4: ask investors to look into the end data points rather
2:09
Speaker 4: than what just he's saying. I mean, he's a very
2:11
Speaker 4: important person right now, but we look at the end
2:14
Speaker 4: data points. The customers are really increasing their AI spend. Right,
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Speaker 4: the IT total capex budgets are increasing, but the AI
2:21
Speaker 4: portion within that is also increasing. And it's not just
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Speaker 4: at the chip level. The contracts that they have with
2:26
Speaker 4: their software customers, even those customers are guiding up their
2:30
Speaker 4: revenue targets.
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Speaker 6: Hey, Kun, John, I love their customer list that they
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Speaker 6: read off.
2:35
Speaker 3: It's kind of a who's who of Silicon Valley, you know, Facebook, Google,
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Speaker 3: whatever their new names are.
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Speaker 6: What's the next? Is there a next set of customers out.
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Speaker 3: There above and beyond kind of the household names that
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Speaker 3: we all know that maybe they're targeting.
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Speaker 4: Yes, an enterprise segment is sort of the new the
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Speaker 4: next area that they're really targeting. Right, They already have
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Speaker 4: the big large spenders, but now they want to diverse
3:00
Speaker 4: if I and expand the reach across enterprises. And the
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Speaker 4: second big target now is sort of governments and reach
3:07
Speaker 4: sovereign governments and solign wells. Right, that's what they're targeting
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Speaker 4: that they believe AI will be, you know, because of
3:14
Speaker 4: geopolitical and trade issues will be more regional and every
3:17
Speaker 4: big economy will need to spend on that.
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Speaker 5: Are there any headwinds that investors need to be looking
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Speaker 5: out for, because I just looked on the A and
3:26
Speaker 5: R function on Bloomberg and there are zero cells for
3:30
Speaker 5: in video. There was one last night from morning Star,
3:32
Speaker 5: and now he's upgraded to a hold.
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Speaker 7: Yeah.
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Speaker 4: I mean, look, if you look at just what the
3:38
Speaker 4: data says, usually the stock price follows the analyst price targets.
3:43
Speaker 4: It seems here the price targets are following the stock price.
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Speaker 4: When we look at the fundamentals, right, there was really
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Speaker 4: nothing that to highlight as a risk factor in the
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Speaker 4: earnings and really in the near term for twenty twenty four.
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Speaker 4: But if you were, if we were to form a
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Speaker 4: bare thesis, a couple of things that would you would
4:00
Speaker 4: look at as risk factors for the long term. One
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Speaker 4: is the China risk. We did see China revenue almost
4:06
Speaker 4: reduced by half versus three q in this quarter, right,
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Speaker 4: and we know this problem is not going away, if
4:12
Speaker 4: at all getting worse. So right now they are easily
4:14
Speaker 4: able to offset what they could have shipped to China
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Speaker 4: while shipping to other customers in the US and other regions.
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Speaker 4: But at some point when the demand supply sort of
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Speaker 4: normalizes and the growth rates become more of a normal
4:27
Speaker 4: run rate. You know, this is taking a bite out
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Speaker 4: of that opportunity that they could have served in China.
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Speaker 4: So that's one risk factor on the long term. The
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Speaker 4: second being their largest customers, which are the cloud players,
4:39
Speaker 4: have started to design their own ships. So again this
4:41
Speaker 4: is far out, but at some point this still takes
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Speaker 4: a bite out of the apple that n media could
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Speaker 4: have served.
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Speaker 3: So that's kind of where I wanted to go, Ko John,
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Speaker 3: I mean just the competitive environment. You know, can you
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Speaker 3: explain why these guys are the only game in town?
4:55
Speaker 3: That seems odd to me.
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Speaker 4: I mean, it's not by an accident. These guys were
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Speaker 4: sort of the inventor, if you will, for the GPU.
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Speaker 4: They have been working on a GPU for decades and
5:08
Speaker 4: out investing everyone, being at the leading edge. So you know,
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Speaker 4: this was the same question when we talked about gaming
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Speaker 4: and when we talked about crypto, right the last two
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Speaker 4: waves which drove the growth for this company. It was
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Speaker 4: not by accident. They have been at this forefront of
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Speaker 4: these new applications where the application suddenly realized, well, GPU
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Speaker 4: is the best case compute platform, and that's why they
5:30
Speaker 4: adopted GP. Same thing what we're saying with AI so
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Speaker 4: this was not by accident. If you look at that
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Speaker 4: R and D spend, which they guided to being growing
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Speaker 4: by mid thirties next year, it's a significant amount of
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Speaker 4: R and NE dollars they continue to spend and to
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Speaker 4: keep again being at the leading edge of the next
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Speaker 4: cycle of innovation.
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Speaker 5: Can you talk a little bit also about the gaming
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Speaker 5: revenue here, because I'm looking at your report you said
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Speaker 5: gamings better than seasonal top line, But what was really
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Speaker 5: driving that? Because I actually don't really know if I
6:00
Speaker 5: know anything about in Video's gaming involvement.
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Speaker 4: Yeah, so the last quarter was if you look at
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Speaker 4: typical seasonality, it would be we expected it to be
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Speaker 4: a down quarter at least by mid single digits, but
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Speaker 4: it came in flat right. So and the strength the
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Speaker 4: reason driver for there was better demand for their RTX products.
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Speaker 4: These are their gaming cards you know in dex stops
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Speaker 4: and what gamers get. So this is what came in
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Speaker 4: better than they had expected due to the holiday season.
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Speaker 4: Now this is again a temporary move and sort of
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Speaker 4: not no longer a big focus for investors, but that
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Speaker 4: was still good to see that in a typical down
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Speaker 4: seasonal quarters they were still able to do better than seasonality.
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Speaker 3: Could John talk to me your your investment research channels.
6:42
Speaker 3: You care about valuation, It's not just all hype for you.
6:45
Speaker 3: Give us a sense of how this stock is valued.
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Speaker 3: It's up a good jillion and one percent. Don't we
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Speaker 3: have like concerns about value here?
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Speaker 4: Yeah, we do. Just like any other stock which has
6:58
Speaker 4: a premium valuation. We do one thing that gives us
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Speaker 4: a little bit comfort. Now, like when you look at
7:04
Speaker 4: the valuation multiples now versus as it says six months ago,
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Speaker 4: they have come down to a sort of now it's
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Speaker 4: a reasonable premium above socks and in sort of in
7:14
Speaker 4: line or slightly better than it's peers. And look, it
7:18
Speaker 4: is still the fastest growing story in same as it
7:21
Speaker 4: is at this size. It is still the de fact
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Speaker 4: on name when it comes to AI. As of today,
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Speaker 4: it is taking almost entire wallet share of AI spending,
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Speaker 4: so it does deserve that premium.
7:35
Speaker 5: We're about to speak to the executive director of the
7:38
Speaker 5: Port of Los Angeles YEP in just a few minutes,
7:40
Speaker 5: Gene Soroca. So I imagine we're going to be talking
7:42
Speaker 5: about the supply chain. Could you give us a sense
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Speaker 5: of how Nvidia is dealing with the snirled global supply chain,
7:50
Speaker 5: any challenges there.
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Speaker 4: They have done an absolutely amazing job at bringing up
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Speaker 4: supply right the last year, for every quarter, the biggest
8:00
Speaker 4: concern was not demand but supply, because usually when you
8:03
Speaker 4: try to bring up supply so fast so quick, you
8:06
Speaker 4: do run into hiccups. We didn't see any hiccups throughout
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Speaker 4: every quarter last year. In fact, you know the gross
8:13
Speaker 4: margin upside. A key driver for that was lower component cost.
8:17
Speaker 4: And what we did from that is that they were
8:19
Speaker 4: able to get more suppliers online. They were they were
8:22
Speaker 4: able to expand and diversify supply and enjoyed the benefits
8:26
Speaker 4: of the pricing that comes with it. So they've done
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Speaker 4: an absolute amazing job bringing up supply this quick.
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Speaker 3: All right, So in a chip space, the play here
8:34
Speaker 3: for AI is in Vidia. Is there a number two
8:37
Speaker 3: play that I can try to, you know, jump onto?
8:43
Speaker 4: I wouldn't. I cannot commend of regarding the valuation, But
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Speaker 4: from the fundamental point of view, A couple of other
8:48
Speaker 4: names we really like in terms of AI and Semi's
8:51
Speaker 4: are a MD and Broadcom and to some extend, Marvell.
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Speaker 3: All right, Kunjohn, thanks so much for joining us quon
8:57
Speaker 3: John Sabani, Senior analyst on semiconductors for Bloomer Intelligency, joins
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Speaker 3: us on Zoom from San Francisco, and again, just a
9:04
Speaker 3: great print out of in video and that's something that
9:07
Speaker 3: the stock had to have because it's up over two
9:10
Speaker 3: hundred and forty percent over the last year, and it's up,
9:13
Speaker 3: you know, fifty percent.
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Speaker 6: Year to date, So that was a high bar.
9:16
Speaker 3: Of expectations for the street. And stock's up fifteen percent
9:19
Speaker 3: on the print. So market's tonya. They like what they
9:22
Speaker 3: heard last night.
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9:42
Speaker 3: It's all about Nvidia today, up fifteen percent, taking the
9:44
Speaker 3: markets high. Our next guest had this name on our list,
9:47
Speaker 3: so I'm guessing a good good day for her. Shana Sissel,
9:50
Speaker 3: president and CEO of Van Ryan Capital Management, joins us
9:53
Speaker 3: via that Zoom thing also the Internet in Chicago, Illinois.
9:56
Speaker 3: So Shana, thanks so much for joining us. I know
9:59
Speaker 3: in your notes, you had up in videos one of
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Speaker 3: your names A y. I think I understand now, but
10:05
Speaker 3: what do you make of the quarter last night?
10:08
Speaker 8: So I've followed in video my entire career. When I
10:11
Speaker 8: first started in the business, it wasn't even in the
10:14
Speaker 8: s and P five hundred, but it traded in a
10:16
Speaker 8: very like predictable pattern, So it was just a stock
10:19
Speaker 8: I kind of clung on to when I was learning
10:21
Speaker 8: the ropes, and I've followed it ever since. In twenty seventeen,
10:26
Speaker 8: I attended a private equity conference where every single speaker
10:30
Speaker 8: talked about how important in video was for you know,
10:35
Speaker 8: artificial intelligence, autonomous vehicles, data centers, and I thought at
10:39
Speaker 8: that time, like I should own this stock. And I've
10:41
Speaker 8: been a bull ever since. So I've been pretty happy
10:44
Speaker 8: with how the stock's done, and I keep trying to
10:46
Speaker 8: come up with a barecase because I'm one of those
10:50
Speaker 8: people that if it's too good to be true, there's
10:51
Speaker 8: got to be something wrong. And I still haven't been
10:53
Speaker 8: able to come up with a really solid barecase for
10:55
Speaker 8: the stock. I'm not surprised by their killer earnings last night.
11:00
Speaker 8: They've been doing this now for several quarters, and it
11:03
Speaker 8: seems like they are the rocket ship that's keeping the market,
11:07
Speaker 8: you know, afloat.
11:08
Speaker 5: So what do you tell someone that, unlike you, has
11:12
Speaker 5: not owned in Vidia and is just looking at the
11:14
Speaker 5: stock now and the earnings now and thinking, oh my gosh,
11:17
Speaker 5: should I should I buy this stock right now? Is
11:21
Speaker 5: this a time that you know, people can be adding
11:24
Speaker 5: more to Nvidia and maybe entering the position, or is
11:27
Speaker 5: it more a time to be holding on to what
11:29
Speaker 5: you already have.
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Speaker 8: Well, I've always people ask me this all the time,
11:33
Speaker 8: and I'm always hesitant to say, yes, buy it at
11:36
Speaker 8: this entry point because it feels really frothy. I know
11:39
Speaker 8: I'm personally not adding to it, but my cost spaces
11:42
Speaker 8: is like two hundred and fifty dollars, so you know,
11:44
Speaker 8: and that you know, I have no reason to at
11:47
Speaker 8: this point. It's hard to say. The momentum is there,
11:50
Speaker 8: and I don't think there's anything that's going to be
11:53
Speaker 8: a headwind to the stock in the near future. We're
11:55
Speaker 8: really early in this artificial intelligence trend, maybe second inning,
12:00
Speaker 8: and so I think that there's a real possibility this
12:02
Speaker 8: stock could be, you know, twelve hundred dollars a year
12:04
Speaker 8: from now. So I don't think it's a bad idea
12:07
Speaker 8: if you don't have a position to enter it now.
12:09
Speaker 8: But I would be careful and maybe look for buying
12:11
Speaker 8: it on weakness, like I would have bought it ahead
12:13
Speaker 8: of earnings when it was at six fifty as opposed
12:17
Speaker 8: to today where it's really benefiting from the news. I
12:20
Speaker 8: might look to find some good entry points. But it's
12:23
Speaker 8: hard because every time I say that, the stock just
12:25
Speaker 8: keeps going up, and then people get mad at me
12:27
Speaker 8: because they missed the opportunity to buy in when it
12:29
Speaker 8: was cheaper.
12:30
Speaker 9: Shane, how about Cisco.
12:32
Speaker 3: That's kind of what I consider kind of a you know,
12:34
Speaker 3: old school tech name here, and I look at the
12:36
Speaker 3: over the last five years and it's had a compounded
12:38
Speaker 3: annual growth of about only about two and a half percent,
12:41
Speaker 3: with S and P up about fourteen and a half
12:43
Speaker 3: percent compounded. What's been the story at Cisco in terms
12:46
Speaker 3: of its underperformance from your perspective.
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Speaker 8: Well, primarily it's been that they just haven't kept up
12:52
Speaker 8: with the trends. The technology that they provide isn't relevant
12:55
Speaker 8: to a lot of the latest and greatest trends like
12:58
Speaker 8: artificial intelligence. But they're trying to pivot and become more
13:03
Speaker 8: relevant and the stock is really cheap. So in my opinion,
13:06
Speaker 8: it's a stock that I've looked at and I own
13:08
Speaker 8: a small position, and it is a stock that I
13:10
Speaker 8: do like, but it is a stock that I don't
13:13
Speaker 8: know if I'm completely a bull, but it's just so
13:16
Speaker 8: cheap and they are trying hard to become more relevant
13:19
Speaker 8: in the space that I think they have an opportunity
13:23
Speaker 8: to at least improve their growth rate going forward, which
13:26
Speaker 8: should help the stock. It's trading at an ridiculously cheap multiple,
13:30
Speaker 8: especially when you consider tech as a whole, So I
13:33
Speaker 8: don't think there's a ton of downside in the stock,
13:36
Speaker 8: but you know, I'm still not sure it's a go
13:39
Speaker 8: to the moon like Nvidio kind of thing, But I
13:41
Speaker 8: do think there is an opportunity with the management chain
13:44
Speaker 8: really looking to focus and pivot the business to be
13:47
Speaker 8: more relevant in current trends today.
13:50
Speaker 5: What are you looking at in the pharmaceutical sector?
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Speaker 8: So I really like Novartis and Veritex's pharmaceuticals. You know,
13:58
Speaker 8: one of the things that I find really interesting is
14:00
Speaker 8: if you haven't figured this out yet, I like looking
14:03
Speaker 8: at what the new emerging trends are, what's going to
14:05
Speaker 8: be the thing that you know, changes the world going forward.
14:08
Speaker 8: And when you look at drug development, there's really interesting
14:11
Speaker 8: things going on right now, especially in things like cancer research.
14:15
Speaker 8: So Novartists in particular has some absolutely groundbreaking oncology drugs.
14:20
Speaker 8: And the speed at which we're seeing new drugs come
14:24
Speaker 8: to the market that are really changing the game and cancer,
14:27
Speaker 8: where it's changing cancer from you know, a terminal illness
14:31
Speaker 8: to more like a chronic illness is remarkable. Novartis is
14:34
Speaker 8: kind of at the forefront for that. In the case
14:36
Speaker 8: of ver attacks. They have a very strong cystic fibrosisline
14:41
Speaker 8: which really doesn't have any competitors, and they really are
14:44
Speaker 8: trying to focus on those key areas where they have
14:47
Speaker 8: a true edge. So those that's why I like those
14:49
Speaker 8: two stocks in particular. But you know, we have like
14:53
Speaker 8: Nova Noordis and Eli Lilly who are benefiting from, you know,
14:57
Speaker 8: the ozembic trends, and Eli li also has some great
15:00
Speaker 8: oncology drugs. It's just a little pricey right now, which
15:03
Speaker 8: is why it's not on my list.
15:04
Speaker 3: How about energy here, I'm looking at WTI crude oil
15:06
Speaker 3: at seventy eight dollars per barrel. How do you think
15:11
Speaker 3: about the energy space here. The stocks have been quite
15:13
Speaker 3: good over the last several years. Hey, what do you
15:15
Speaker 3: think going forward here?
15:17
Speaker 8: Well, inflation has helped energy stocks, and if you looked
15:19
Speaker 8: at the latest PPI and CPI numbers, energy was one
15:23
Speaker 8: of the main reasons why some of those numbers are
15:25
Speaker 8: one of the only areas that we saw decline in
15:29
Speaker 8: inflation if you look at it with energy and food.
15:32
Speaker 8: So obviously gas prices have come down. That's good for
15:35
Speaker 8: the consumer. And so I don't know if there's a
15:37
Speaker 8: huge till end to the entire sector, but I do
15:39
Speaker 8: like a stock like saying like Diamondback Energy because they
15:43
Speaker 8: don't need oil to be one hundred dollars a barrel
15:46
Speaker 8: to have good revenue and good profitability. I think their
15:50
Speaker 8: break even is fifty dollars a barrel, and so there's
15:53
Speaker 8: quite a bit of opportunity for a stock like Fang
15:56
Speaker 8: to do well in an environment where other energy companies
15:59
Speaker 8: aren't doing as well.
16:01
Speaker 5: Paul, I don't know if you know this, but Shana
16:04
Speaker 5: actually has a nickname. It doesn't have to deal with
16:07
Speaker 5: single stocks. She is also known as the Queen of Alternatives.
16:12
Speaker 5: Oh nice, So let's get your perspective on the outlook
16:15
Speaker 5: for alts in twenty twenty four. Is there anything in
16:18
Speaker 5: particular that jumps out to you as attractive for this year.
16:22
Speaker 8: Yeah, I think that. You know, we've spent a lot
16:24
Speaker 8: of time over the last couple of years being really
16:26
Speaker 8: excited about that venture capital and private equity space, and
16:31
Speaker 8: we're not seeing as much of a tailwind in either
16:34
Speaker 8: one of those spaces right now. Private equity has not
16:36
Speaker 8: performed as well as the overall public markets, and venture
16:39
Speaker 8: capital has a ton of headwinds to it. So you
16:42
Speaker 8: gotta think a little bit outside the box. And there's
16:44
Speaker 8: areas in the alternative space that I think are really interesting,
16:48
Speaker 8: some of the more diversifying kind of names in the
16:51
Speaker 8: hedge fund space, like equity market neutral, some event driven
16:55
Speaker 8: things of that nature. But also if you look at
16:57
Speaker 8: private credit and private debt in the environment we're in now,
17:00
Speaker 8: where I think we're at peak interest rates. I'm not
17:03
Speaker 8: saying that I think the Fed's going to cut anytime soon,
17:05
Speaker 8: because I don't think that, but I do think there's
17:07
Speaker 8: better opportunity for yield than some of the private credit
17:09
Speaker 8: and private debt markets because banks as a whole are
17:13
Speaker 8: not as open to smaller businesses and to startups and
17:18
Speaker 8: things of that nature. So they're going to other markets,
17:21
Speaker 8: and the biggest beneficiary of that are private debt, debt
17:24
Speaker 8: and private credit.
17:25
Speaker 3: Yeah, that's certainly been just a tremendous area of growth
17:28
Speaker 3: really over the last ten to twelve years, private credit.
17:31
Speaker 3: As you know, the banks have kind of pulled back
17:33
Speaker 3: after the posts after the financial crisis. So a big,
17:35
Speaker 3: big market there. Shanna Sisso, thanks so much for joining us.
17:38
Speaker 3: Shana is president and CEO fan Ryan Capital Management. She
17:41
Speaker 3: joins us via zoom from Chicago, Illinois.
17:46
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18:00
Speaker 9: Ye boy, it is Nvidia day.
18:02
Speaker 3: To say, the leases impacting not only at stock that sector,
18:06
Speaker 3: any overall market.
18:07
Speaker 4: Here.
18:07
Speaker 3: Let's get some perspective on it as only one b
18:10
Speaker 3: rid Holts can do. Barry Ridolt's host of Masters in
18:12
Speaker 3: Business on Bloomberg Grit. It's a little podcast like a
18:15
Speaker 3: jillion people will listen to every week. He gets great
18:17
Speaker 3: guests but his day job, he's a founder of a
18:19
Speaker 3: rid Holt's Wealth Management. Barry, I mean you and I
18:22
Speaker 3: we've been in this market a long time. I'm struggling
18:25
Speaker 3: to find a stock that had such an impact for
18:29
Speaker 3: such a period of time as in video.
18:31
Speaker 9: What do you make of it?
18:33
Speaker 10: Well, you know, I'm always perplexed when I see people
18:39
Speaker 10: sort of shrugging off new technology, new companies, shifts in
18:45
Speaker 10: how we operate. We should just stick with the you know,
18:49
Speaker 10: imagine someone in the nineteen twenty saying, what's with these
18:53
Speaker 10: new fangled you know, telephone and radio and aueomobiles. Let's
18:58
Speaker 10: just stick with the steam and leather belt companies. They've
19:02
Speaker 10: done great for so long. Hey, you know, technology is
19:06
Speaker 10: how wealth is created, how society moves forward, how humans
19:12
Speaker 10: dominate the planet. And it's pretty clear. Yeah, there's a
19:16
Speaker 10: lot of hype. I'll go back to computer companies in
19:20
Speaker 10: the eighties or automobile companies in the twenties. I can't
19:24
Speaker 10: tell you which of those companies are going to be
19:27
Speaker 10: the winners. And there's always hundreds of them, remember Gateway Computing.
19:33
Speaker 10: But somebody out of that complex is going to be
19:36
Speaker 10: a big winner, and it's going to drive a lot
19:39
Speaker 10: of the economic activity that takes place.
19:43
Speaker 5: Barry, what have you learned from in Video's earnings in
19:47
Speaker 5: terms of whether Nvidia is going to emerge as one
19:50
Speaker 5: of those winners. Paul's been asking pretty much every guest
19:53
Speaker 5: on this show today, you know what makes in video
19:57
Speaker 5: so different? Why are their chips attractive to so many
20:01
Speaker 5: corporations versus IBM's broad cooms. So where are we right
20:07
Speaker 5: now in terms of assessing weather and video is really
20:09
Speaker 5: going to emerge as one of these winners?
20:11
Speaker 10: Aig so caveat. I'm not a semiconductor analyst. However, if
20:17
Speaker 10: we look at the history of chips and how they've
20:20
Speaker 10: developed over time, at one point it was all Intel
20:23
Speaker 10: and nobody else had a whole lot to say. Then
20:28
Speaker 10: we started looking at more complex calculations. We went from
20:34
Speaker 10: reduced instruction sets to more complex to floating point, and
20:38
Speaker 10: then it was graphic generators and games and then mobile
20:44
Speaker 10: and so there's this been this progression, and along that
20:47
Speaker 10: progression in Vidia has been extremely innovative and ahead of
20:53
Speaker 10: the curve from their bigger competitors, or at least once
20:57
Speaker 10: bigger competitors. You can't can't say that anymore. And so
21:00
Speaker 10: this is all about GPUs and cycles. I'm going to
21:05
Speaker 10: tell you what I think a lot of people are
21:06
Speaker 10: afraid to say. I have no idea if Nvidia is
21:10
Speaker 10: ultimately going to be the winner ten or twenty years
21:13
Speaker 10: from now. The technology changes so quickly, the upstarts come
21:19
Speaker 10: along and disrupt the environment so much, it's very difficult
21:26
Speaker 10: to make that be that said, go back. You don't
21:29
Speaker 10: even have to go back twenty five years. Go back
21:32
Speaker 10: five years, and video was that disruptor. I can't tell
21:37
Speaker 10: you who might be the disruptor to in video or
21:40
Speaker 10: if they're going to dominate. Very few companies dominate for decades.
21:45
Speaker 10: Look at Microsoft as an example. That's the exception, not
21:49
Speaker 10: the rule. We've gone through Armholdings and AMD and Intel
21:54
Speaker 10: and Qualcomm and one semi company after another. So it's
22:00
Speaker 10: really really difficult to make that bad.
22:03
Speaker 3: So Barry, I would say, you can correct me here
22:07
Speaker 3: on the number of years here, But it seems like
22:09
Speaker 3: for the last twenty plus years tech has been leading
22:13
Speaker 3: this market.
22:14
Speaker 9: Is there any scenario why why shouldn't that be overweight
22:18
Speaker 9: Tech long term? And just no scenario is there?
22:20
Speaker 10: So first let me correct you. It's not twenty years.
22:24
Speaker 10: It's forty years, right, go back to the nineteen eighties.
22:27
Speaker 9: Well you're a lot older than me Berry's.
22:31
Speaker 10: So you move from from mainframe computing to desktop computing
22:37
Speaker 10: and the rise of software with that, and then eventually
22:40
Speaker 10: you moved to gaming and mobile, and now AI is
22:45
Speaker 10: a software that's driving a lot of this. You know,
22:49
Speaker 10: what we think of as a separate space of technology.
22:53
Speaker 10: I love to look at the books about investing from
22:57
Speaker 10: like the early twentieth century, and they talk about telegrams
23:03
Speaker 10: and telephones and rails the way we talked about chips
23:08
Speaker 10: and software and internet. You know, in the nineteen thirties, forties, fifties,
23:13
Speaker 10: there were no telephone companies other than ma Bel. Everybody
23:19
Speaker 10: used a telephone. So the way we describe internet companies,
23:23
Speaker 10: I think that's going to fade and everybody's going to
23:26
Speaker 10: be an Internet using company. Everybody is going to end
23:30
Speaker 10: up being an AI company. The question is are you
23:33
Speaker 10: providing the picks and shovels? Like, it wasn't the the
23:37
Speaker 10: you know, the gold miners who got money, who got wealthy,
23:40
Speaker 10: It was the company selling them dungarees and picks and shovels.
23:44
Speaker 10: And so we kind of think of Nvidia that way,
23:47
Speaker 10: that's the appeal, But that's a long way to answer.
23:53
Speaker 10: I'm not uncomfortable being overweight technology. You want to be
24:00
Speaker 10: a little you know, advantageous in the way you purchase it.
24:06
Speaker 10: The one thing that is so counterintuitive about all time
24:10
Speaker 10: highs that we just reached. All time highs tend to
24:14
Speaker 10: be very bullish and historically have done well.
24:17
Speaker 9: Before we let you go because of your extension age.
24:20
Speaker 3: The Nike all time high since nineteen eighty nine, that's perspective.
24:25
Speaker 10: Isn't it that that's bullish and and you know people
24:29
Speaker 10: have a tendency to look at last year is a
24:31
Speaker 10: perfect example. Oh my god, the nasdak up fifty percent,
24:35
Speaker 10: the SMB of twenty five percent. You have to have
24:38
Speaker 10: context and say over two years, twenty two and twenty three,
24:43
Speaker 10: those in the seas are flat. So as much as
24:45
Speaker 10: it looks like we've come too far, too fast, you're
24:48
Speaker 10: really just making up. Kind of reminds me of you know,
24:50
Speaker 10: the rally in nine to ten, making up the losses
24:53
Speaker 10: from seven oh eight. So Japan is a whole nother world.
24:59
Speaker 3: Our friends until could deserve a shout out. I mean,
25:01
Speaker 3: it's been nineteen eighty nine.
25:03
Speaker 9: Good for them. Remember Barry, back early in our career.
25:06
Speaker 3: You had to be a part of that whole Japanese
25:08
Speaker 3: market and then boy for just nothing for a long time.
25:11
Speaker 3: Barry Ridolts, host of Masters in Business on Bloomberg Radio.
25:14
Speaker 3: Great podcast, go check it out. His great guests every week,
25:19
Speaker 3: some of the leaders in finance. It's also founder of
25:21
Speaker 3: rid Holts Wealth Management. Some good stuff there.
25:25
Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live
25:29
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25:32
Speaker 2: Play and Android Auto with the Bloomberg Business App.
25:35
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Speaker 1: flagship New York station Just Say Alexa playing Bloomberg eleven thirty.
25:43
Speaker 3: You know, during the pandemic Emily, one of the economic
25:46
Speaker 3: issues that really became apparent is supply chains and how
25:50
Speaker 3: you know, susceptible supply chains are to disruptions and boy
25:53
Speaker 3: shutting down the world's economy and then reopening it creates
25:57
Speaker 3: some disruptions. And one of the people we leaned on
25:59
Speaker 3: for kind of analysis and explanations about how this whole
26:03
Speaker 3: thing works is Jeene Soroca. He is the executive director
26:05
Speaker 3: of the Port of Los Angeles.
26:07
Speaker 9: Yes, that port.
26:09
Speaker 3: The Port of Los Angeles is one of the world's
26:11
Speaker 3: busiest seaports and the leading gateway for international trade in
26:14
Speaker 3: North America. So Gene was so good to us during
26:16
Speaker 3: the pandemic and the logistics and all the stuff you
26:19
Speaker 3: had to worry about supply chain during that period. So
26:22
Speaker 3: we appreciate getting some of Gene's time. So, Jean, I
26:25
Speaker 3: know we're back to normal. I know you guys in
26:27
Speaker 3: the Port of Los Angeles settled your labor issues last year.
26:31
Speaker 9: Talk to us about global trade. What's it like in
26:33
Speaker 9: a day at the Port of Los Angeles? Died these days?
26:35
Speaker 9: How's business Paul Emily, Good morning.
26:37
Speaker 11: Business is really good. We're running it about seventy five
26:40
Speaker 11: to eighty percent of full capacity at the Port of
26:42
Speaker 11: Los Angeles. Anything butt normal though around the world, with
26:46
Speaker 11: issues in the Panama Canal, with respect to drought in
26:50
Speaker 11: the Middle East, with concerns around safety and security, and
26:53
Speaker 11: broader looks at how this US economy is going to
26:56
Speaker 11: continue to propel itself thanks to the American consumer. So
27:00
Speaker 11: let's start off with where we're at right now. Six
27:02
Speaker 11: consecutive months of growth, the second best January ever up
27:06
Speaker 11: eighteen percent compared to last year, and our first quarter
27:11
Speaker 11: outlook is it about two point two million containers or
27:14
Speaker 11: twenty percent year on year increase compared to Q one
27:17
Speaker 11: of last year.
27:18
Speaker 5: So how would you assess then, the overall health of
27:21
Speaker 5: the global supply chain relative to what we saw during
27:24
Speaker 5: the pandemic, because, like Paul said, it seemed like everyone
27:27
Speaker 5: was suddenly talking about the supply chain and where are
27:31
Speaker 5: we relative to just a few years ago.
27:34
Speaker 11: Emily, I think we're in a lot better shape. We've
27:36
Speaker 11: learned a lot from what we saw then too, But
27:38
Speaker 11: we're front of mind now to so many people outside
27:41
Speaker 11: our general industry, whether it's us looking for our packages,
27:44
Speaker 11: what's on the store shelves, or just the general consciousness
27:47
Speaker 11: about how this port supply chain and trade business impacts
27:53
Speaker 11: economies and jobs around the world. What we see in
27:56
Speaker 11: Los Angeles is that there are a couple things happening
27:58
Speaker 11: right now. The stability of that labor contract has given
28:02
Speaker 11: us about a four percentage point boost in market share,
28:05
Speaker 11: So some of that cargo that we lost during the
28:07
Speaker 11: protracted negotiations has started to come back, not all of it.
28:11
Speaker 11: Much more work to do, but good trajectory now with
28:15
Speaker 11: the Panama Canal suffering drought and the concerns of safety
28:19
Speaker 11: in the Middle East. With respect to the Hoothy going
28:23
Speaker 11: after the ships and the cargo and oil tankers, you're
28:28
Speaker 11: starting to see more cargo shifted our way, not services
28:32
Speaker 11: being collapsed, not new vessels coming in, but higher levels
28:36
Speaker 11: of capacity and utilization, and importers and exporters saying I
28:40
Speaker 11: may not want to take that much time, but the
28:43
Speaker 11: bigger difference is the gap between cargo that's moving east
28:47
Speaker 11: and Gulf Coast versus the West Coast is wider from
28:51
Speaker 11: a freight cost perspective. That's important because we're right now
28:55
Speaker 11: in the middle of our annual contracting season for freight.
28:58
Speaker 3: All right, So right on the Port of Los Angeles
29:02
Speaker 3: on the West Coast, you probably have the best of
29:03
Speaker 3: you of anybody trade with China.
29:06
Speaker 9: What's what's it like now?
29:07
Speaker 3: What's your expectation for that important route of trade coming
29:11
Speaker 3: from China to your port.
29:13
Speaker 11: Paul, it's still our most dominant trading partner. Fifty three
29:17
Speaker 11: percent of Port of Los Angeles business is with China.
29:20
Speaker 4: Now.
29:20
Speaker 11: That's down from fifty seven percent at the end of
29:23
Speaker 11: year twenty twenty two, and it may drop into the
29:26
Speaker 11: mid forties as many supply chain executives are continuing with
29:30
Speaker 11: their China plus one strategy, looking at other locations to
29:34
Speaker 11: source and produce goods in. But still forty five fifty
29:39
Speaker 11: years of supply chain relationships exist. You don't tear that
29:42
Speaker 11: apart overnight.
29:43
Speaker 5: Just the other day, the White House said that they
29:45
Speaker 5: were concerned that more than two hundred ship to shore
29:49
Speaker 5: cranes at US ports are manufactured by China and can
29:53
Speaker 5: be serviced and programmed remotely, creating a cybersecurity vulnerability. What
29:58
Speaker 5: did you make of those comments? How legitimate are the
30:00
Speaker 5: White House's concerns?
30:02
Speaker 11: It's also very important to us. The Port of Los Angeles,
30:05
Speaker 11: Emily was the first in the nation to create a
30:08
Speaker 11: cyber security operations center back in twenty fourteen with the
30:12
Speaker 11: help of the Department of Homeland Security. Today that system
30:16
Speaker 11: is stopping more than sixty million cyber intrusion attempts per month.
30:21
Speaker 11: It also gave us awareness to create a cyber resilient center.
30:25
Speaker 11: Also one of the first in the world to bring
30:27
Speaker 11: in the private sector partners with US that co helped
30:32
Speaker 11: with the IBM folks. It has now stopped to have
30:36
Speaker 11: a dozen cyber intrusion attempts to private sector interests that
30:40
Speaker 11: they were otherwise unaware of. So this work must continue.
30:45
Speaker 9: It gives that up there. You mentioned the Panama Canal.
30:46
Speaker 6: Fascinated by the Panama canaw I read a.
30:48
Speaker 9: Great book on it. I'll fundy author later.
30:50
Speaker 3: It's phenomenal how they built that thing. So what's wrong
30:53
Speaker 3: with the Panamac There's a drought and so the water
30:56
Speaker 3: levels are lower, so they're not taking the amount of
30:57
Speaker 3: freight they typically take.
30:59
Speaker 11: That's exact lead it. And you think about a vessel
31:02
Speaker 11: at full capacity. They can't load to the top, and
31:06
Speaker 11: the transits through the canal are down some twenty three
31:09
Speaker 11: percent according to published reports thus far this year. Now
31:13
Speaker 11: the port authority folks switched on. They're railing cargo from
31:16
Speaker 11: the Atlanta from the Pacific side to the Atlantic for
31:19
Speaker 11: onward carriage to Europe and North America. But it's just
31:23
Speaker 11: not enough. And that's that's why this capacity issue is
31:25
Speaker 11: so important.
31:26
Speaker 3: The path between the seas. David McCollough, that's the book
31:29
Speaker 3: phenomenal about the history of the Panamakete.
31:32
Speaker 9: It's a weekend.
31:33
Speaker 3: It's more than a weekend, it's a beast all right, So, Gene,
31:37
Speaker 3: so is your business, I mean it's a GDP business?
31:41
Speaker 3: Is that how you kind of plan it out here?
31:43
Speaker 3: And so do you get a sense of are your
31:45
Speaker 3: customers are they telling you? What are they telling me
31:47
Speaker 3: about their sense of the economy?
31:49
Speaker 11: Broadly speaking, most are upbeat. Seventy percent of our GDP
31:53
Speaker 11: is tied to you and me buying goods now. Although
31:57
Speaker 11: the consumer purchasing was down a little bit of Jamanuary,
32:00
Speaker 11: it was not unexpected. Great sales for the holiday season
32:04
Speaker 11: nearly a trillion dollars up three point eight percent last year.
32:08
Speaker 11: There was going to be a little bit of a
32:09
Speaker 11: lull in January, but the forward look is strong. The
32:12
Speaker 11: Atlanta Fed is currently estimating first quarter GDP around two
32:16
Speaker 11: point nine percent, healthier than SIT expected, and fourth quarter
32:20
Speaker 11: GDP came in beyond expectations. Again, what we see and
32:25
Speaker 11: the forward look is an order cycle that runs about
32:29
Speaker 11: six months ahead of when we actually buy things in
32:31
Speaker 11: the store online. That inventory flow is a leading economic indicator.
32:36
Speaker 11: Appears good.
32:37
Speaker 3: So, Geene, I'm the captain of this big monstership. I
32:40
Speaker 3: got my containers all over the place.
32:41
Speaker 9: At how they don't fall off?
32:43
Speaker 3: I have no idea I come into your port, how
32:46
Speaker 3: long am I there before I get back on my way.
32:49
Speaker 11: I look at these vital statistics as I call on
32:51
Speaker 11: Paul every morning, and we're at or better than when
32:54
Speaker 11: we were pre COVID. The largest ships that come into
32:57
Speaker 11: the Port of Los Angeles average twelve thousand containers on
33:01
Speaker 11: and off, best in the industry. Every call four and
33:04
Speaker 11: a half days is the amount of time a ship
33:06
Speaker 11: is in port working. That's right where it should be.
33:08
Speaker 9: All right, So I just I think those things.
33:10
Speaker 3: All my bucket list is to go on a cruise
33:13
Speaker 3: on one of those big things. And then when every
33:15
Speaker 3: time I say that, every time I say that, people
33:17
Speaker 3: will email in says that you.
33:18
Speaker 9: Do not want to go in one of those strips
33:19
Speaker 9: because it's not like.
33:20
Speaker 3: You're going on to the Queen Mary or anything. It's
33:22
Speaker 3: tough conditions for those folks that work on their ships.
33:24
Speaker 3: Gene Sroka, thanks so much for joining us.
33:26
Speaker 9: Geen S.
33:26
Speaker 3: Troka is the Executive Director of the Port of Los Angeles.
33:29
Speaker 3: Joining us live here in our Bloomberg Intreactive Broker Studio.
33:32
Speaker 3: Appreciate getting some of his time. He was critical and
33:34
Speaker 3: helping us kind of understand the global supply chain back
33:37
Speaker 3: in the day when that was front.
33:38
Speaker 9: Of mine for everybody.
33:39
Speaker 6: Everybody kind of had to get smart on that.
33:40
Speaker 5: Oh yeah, I mean even just friends and family were bringing.
33:43
Speaker 3: The first time I noticed it during the pandemic because
33:45
Speaker 3: when I went in to get a bicycle and then
33:47
Speaker 3: Guy's like, no, they all come from Asia. Done, it
33:50
Speaker 3: can't get them.
33:51
Speaker 5: So I recently ordered a couch and it still took
33:53
Speaker 5: like two months.
33:54
Speaker 9: To get to Yeah, exactly, exactly, so global supply chain.
33:58
Speaker 1: You're listening to the Bloomberg and Intelligence Podcast. Catch us
34:02
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34:05
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34:11
Speaker 1: York station Just Say Alexa playing Bloomberg eleven thirty.
34:16
Speaker 3: There is another big company out with a really good
34:18
Speaker 3: print on their release that was Moderna. mRNA, the pharmaceutical
34:23
Speaker 3: company put out some good number. Stock is up about
34:25
Speaker 3: nine percent today. This is a thirty billion dollars thirty
34:28
Speaker 3: six billion dollar market cap stock and this is important company.
34:31
Speaker 3: It's one of the companies that delivered the COVID nineteen vaccines.
34:33
Speaker 3: So always have a special place in my heart for sure,
34:37
Speaker 3: along with a couple of others. Sam Fizzelli, he covers
34:39
Speaker 3: his stock, he covers his sector. He's a director of
34:41
Speaker 3: research for Global Industries. He's a senior farmer analyst, one
34:44
Speaker 3: of the best in the city of London for Bloomberg Intelligence.
34:47
Speaker 3: So Sam, looks like a really good quarter for Moderner.
34:50
Speaker 3: What stood out for you.
34:52
Speaker 7: In Nvidia stood out for your pole.
34:56
Speaker 12: After two days of shenanigans in the walket's about how
35:00
Speaker 12: high numbers? Well, but anyway, we're not talking at any
35:02
Speaker 12: video has nothing to do with me.
35:03
Speaker 7: Well, they're not.
35:04
Speaker 12: Clearly they beat in four Q. I mean were they were?
35:07
Speaker 12: They given guidance and LISTA followed the guidance. They were
35:10
Speaker 12: looking for a certain number and then four Q beat
35:13
Speaker 12: as like I said on the terminal in MDL twelve
35:15
Speaker 12: point four percent, right, and they turned the profit a
35:18
Speaker 12: small one in four Q.
35:20
Speaker 7: So that was particularly good. The thing is it's just
35:24
Speaker 7: one quarter.
35:25
Speaker 12: It doesn't really change the dynamic of what's going on
35:28
Speaker 12: in twenty twenty four to twenty twenty five and beyond.
35:31
Speaker 5: Tell us a little bit about that dynamic as you
35:34
Speaker 5: look ahead for Maderna, how exactly are they pivoting away
35:38
Speaker 5: from being a company that people see the name Maderna
35:41
Speaker 5: and they just think COVID.
35:43
Speaker 7: Yeah, so they've got a lot going on.
35:45
Speaker 12: They have one more COVID sales potentially coming up, you know.
35:48
Speaker 12: Apparently they've told us today that the European Union is
35:51
Speaker 12: looking for contracts for thirty six million doses per year
35:55
Speaker 12: in the next few years. You know, that's a lot
35:57
Speaker 12: of doses. And this is always the question here right
36:01
Speaker 12: this European Union. They don't like to pay for much,
36:03
Speaker 12: as we all know. So then they've got a vaccine
36:08
Speaker 12: for RSV, which is another respiratory virus pretty much a
36:13
Speaker 12: major issue in younger kids and older adults. Then you
36:18
Speaker 12: have a flu vaccine that's in development. They have a
36:21
Speaker 12: CMV vaccine, which is not an infection we talk about
36:23
Speaker 12: very often, but it's an issue for newborns, particularly if
36:28
Speaker 12: the mother's got the virus. And of course in the
36:31
Speaker 12: oncology setting in cancer, they've got a trial that has
36:35
Speaker 12: been successful. Now they're trying to figure out whether they
36:38
Speaker 12: want to they'll be able to file it this year
36:41
Speaker 12: for melanoma. So quite a lot going on. Twenty twenty
36:44
Speaker 12: four is a pretty important year.
36:46
Speaker 7: For this company.
36:47
Speaker 3: So I want to go to that cancer angle, sayings,
36:49
Speaker 3: I know you've talked about that before. Is this something
36:52
Speaker 3: where the mRNA technology can be which works so well
36:56
Speaker 3: for delivering the COVID vaccine, maybe this technolo you can
37:00
Speaker 3: be used to deliver other therapeutics, like perhaps for cancer.
37:04
Speaker 12: Yes, so in this case it's still being used in
37:07
Speaker 12: a kind of a vaccine setting. They used to call
37:10
Speaker 12: it personalized cancer vaccine, where they changed it to I
37:14
Speaker 12: and T individualized the neo antigen therapy. I think they
37:18
Speaker 12: wanted to get away from the word vaccine, but in reality,
37:22
Speaker 12: what they're doing is they're using bioinformatics and systems that
37:25
Speaker 12: they've been doing. And I just want to plug a
37:27
Speaker 12: podcast that my colleague Man Deep saying and I did
37:31
Speaker 12: talking to the head of AI at moderna and as
37:35
Speaker 12: the Tech Disruptors podcast. I was honored to be invited
37:39
Speaker 12: first time RAPP for the first time. Yeah, and then
37:42
Speaker 12: so we had that conversation. We talked about what they're doing,
37:44
Speaker 12: and one of the thing that they do is that
37:46
Speaker 12: they identify new things in the tumor of the patient
37:51
Speaker 12: and use that to create an m R and I
37:53
Speaker 12: injected back in just as if it was a COVID
37:55
Speaker 12: vaccine shot to.
37:57
Speaker 7: Raise any new in response.
37:58
Speaker 12: And that's partner with with merk sorry, and you know
38:03
Speaker 12: it's it's shown some really interesting data in first phase two,
38:06
Speaker 12: so the hope is that it will continue to show
38:08
Speaker 12: strong data in phase three.
38:10
Speaker 5: So, Sam, did you just say that Moderna is leveraging AI.
38:14
Speaker 5: I'll definitely have to listen to that podcast. But they're
38:17
Speaker 5: using AI.
38:17
Speaker 12: Is there a company that's not? I mean, isn't that
38:21
Speaker 12: why n video is going to the sun? Forget the
38:23
Speaker 12: move We passed the moon already, right, you know, is
38:27
Speaker 12: there a single company if you do a search for
38:30
Speaker 12: you know, we have a function on terminal which is
38:32
Speaker 12: quite cute, which is nt that you can look.
38:35
Speaker 7: At mentions of words.
38:38
Speaker 12: I think you'll find that AI in transcripts from calls
38:43
Speaker 12: earning scolls is I don't think there is an earning
38:45
Speaker 12: scoll during a year that hasn't mentioned AI.
38:48
Speaker 7: Every company is using it.
38:50
Speaker 3: Sam, let's step back from just Moderna per se and
38:53
Speaker 3: just say what in your space is kind of really
38:56
Speaker 3: the most exciting for you?
38:58
Speaker 9: Is it?
38:59
Speaker 3: Is it cancer therapy, is the dementia? What are some
39:01
Speaker 3: of the big areas that you're seeing a lot of
39:03
Speaker 3: money being spent and you're spending some time looking at.
39:07
Speaker 12: Yes, So Paul, I think with what's going on in
39:09
Speaker 12: pharmaceuticals and drug development and drug discovery and the pace
39:13
Speaker 12: of science, frankly, I can pick any area.
39:17
Speaker 7: Maybe CNS.
39:18
Speaker 12: The nervous system is a little bit more more because
39:21
Speaker 12: of the black box and the complexity that has. But
39:23
Speaker 12: even that is seeing very interesting developments. As you've heard
39:27
Speaker 12: about Alzheimer's is from ELI lily from biogen.
39:31
Speaker 7: In cancer, there isn't a single cancer that.
39:34
Speaker 12: We're now, as you know, we're doing deep dives in
39:35
Speaker 12: cancer across the board that I look at that there
39:38
Speaker 12: isn't some innovation coming and more innovation coming. Then you
39:41
Speaker 12: go to immune inflammation and immunology, you know, XMI, et cetera.
39:45
Speaker 12: A whole bunch of this is all the fruits of
39:48
Speaker 12: two things, genomics and the ability to sequence the you know,
39:53
Speaker 12: really cheaply, really rapidly.
39:55
Speaker 7: That's what's come together.
39:56
Speaker 12: And then of course you got bioinformatics next to it
39:58
Speaker 12: that enables you to analyze that massive data set.
40:03
Speaker 5: We don't have a ton of time left, but I
40:05
Speaker 5: am curious when you compare the results that we got
40:09
Speaker 5: from MODERNA. How are you thinking about MODERNA versus its competitors,
40:13
Speaker 5: I'm thinking.
40:15
Speaker 12: Piser, Yeah, so you're thinking Pfizer, BioNTech. I mean the
40:20
Speaker 12: you know, Pfizer obviously has a lot more going on
40:22
Speaker 12: than just COVID vaccines. Biontic is probably the one to
40:25
Speaker 12: look to look at, So it'd be interesting to see.
40:27
Speaker 7: What they report, Bob.
40:29
Speaker 12: We kind of know already what they're going to report
40:31
Speaker 12: because they get the revenues from Pfizer, and Pizer has
40:33
Speaker 12: already reported, so I don't expect any fireworks there. Of course,
40:39
Speaker 12: with biontach is a slightly different approach to taking a
40:42
Speaker 12: challenge at tackling their future.
40:45
Speaker 7: They've gone much more broad than MODERNA.
40:47
Speaker 12: MODERNA is pretty much stuck with its m r n
40:49
Speaker 12: A capabilities. Biontic is expanding rapidly.
40:53
Speaker 3: Emily sam is a well known wine enthusiast who lives
40:57
Speaker 3: in France.
40:57
Speaker 9: He's usually not impressed with the wine I drink, but
41:00
Speaker 9: I think I got him last time. Are you foot
41:02
Speaker 9: thousand Chateau Rothchild? How good was that?
41:05
Speaker 7: Yes?
41:06
Speaker 12: Shield well done? I mean and drinking it out of
41:09
Speaker 12: a plastic cop Yes, at a.
41:11
Speaker 3: Brooklyn Nets game of all places. So that's kind of
41:14
Speaker 3: how I roll. Not quite in the circles that Sam
41:17
Speaker 3: rolls in in London, in the rare confines of France,
41:19
Speaker 3: but that's kind of how I do it. Sam Fazzelli,
41:21
Speaker 3: thanks so much for joining us. Sam Fazzelli is the
41:23
Speaker 3: director of Research for Global Industries. He's also a senior
41:26
Speaker 3: pharmaceuticals analyst for Bloomberg Intelligence. He's becoming a pharm of
41:29
Speaker 3: space in the city of London for decades. He was
41:32
Speaker 3: absolutely instrumental during the pandemic pandemic helping us understand the
41:37
Speaker 3: virus and then just as importantly, maybe more importantly, understanding
41:41
Speaker 3: the vaccines and the companies and what they were doing there.
41:43
Speaker 3: So that was a critical so we appreciate his time today.
41:47
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