00:00Universal Music Group, it is down 25% in Amsterdam, its steepest decline since going public in 2021.
00:07So remember, Universal is the music label behind Taylor Swift, Lady Gaga, Bad Bonet, as Tom, you like to refer
00:14to him.
00:15And the problem is revenue from subscriptions and streaming disappointed.
00:19So those are two key metrics that they focus on.
00:22Is it also about copyright? They're buying up all the copyrights and all that stuff and it's just not working
00:28out?
00:28Is that part of the discussion?
00:30I think the big thing here is just, you know, what saved the music industry is all these streaming services
00:35and subscription services that saved the music industry and reversed a 30 year, almost a 30 year decline in revenue.
00:42But that just slowed a little bit. That just slowed a little bit.
00:44I'm ignorant. On Spotify, on Apple Music, I use Tidal, it sounds better, period.
00:49But on all of those, does anybody make any money?
00:53The artists certainly don't. That I know.
00:56A lot of these artists, especially independent artists, don't. It's tough out there.
00:59But these streaming services do in a big way.
01:02And the music labels that own it all, they do because they own the rights and all that kind of
01:07stuff.
01:08But it just grew at 16% versus 19%.
01:10Why do you take off 25% of the value on that?
01:12I don't know. It feels a little overdone, but I've got to tell you, the stock is already down 40
01:16% over the past 12 months.
01:17So it's piling on today.
01:19Remember, two months ago, they rejected the takeover bid from Bill Ackman.
01:22And Pershing Square wanted to buy them for $65 billion.
01:26Interesting.
01:26These companies don't really need to be published.
01:28There was just too much. Next?
01:29Roblox. I have to say, I've never played it.
01:31I gather you guys have not?
01:33No, no.
01:33Okay, but my kids have.
01:35Okay.
01:35And so I've seen it.
01:36But the stock is down 20% today, down 40% year-to-date.
01:41Not often we have two stocks back-to-back down 40% year-to-date.
01:44This is the video game company's second quarter results disappointed on key metrics, including users and hours engaged.
01:51Boy, if you don't have those two working for you, I don't know.
01:53It also gave a forecast for both bookings and revenue that was weaker than expected.
01:58So they are looking for their next big game.
02:01Are they like Minecraft?
02:02Exactly.
02:03Yeah.
02:03Some people say they, kids say, you know what, they got into architecture because of like spending time on Roblox.
02:08So maybe there's an educational component here?
02:10They're throwing Minecraft stuff out.
02:13I mean, like eight years ago, it was all the rage.
02:17Yeah.
02:17Do you have another one?
02:18I do.
02:18I do.
02:19Reddit.
02:19Reddit.
02:20We all know it.
02:21We've read it.
02:22Maybe we haven't been on it.
02:23Like we don't like write on it.
02:24I have it on my phone now.
02:25I do.
02:26I do.
02:26I'm starting to use it because all the kids, the Bloomberg News reporters are coming here and shame me that
02:31I'm not using it.
02:32So what I found is it's, it's, I use it to kind of get gossip as opposed to news or
02:39information.
02:40You know, so I'll type in one of my schools or something and just to see what people are saying
02:44about it.
02:45Or get a feel for like what the zeitgeist is saying about it, right?
02:47Like sort of the vibe about it.
02:48So, well, the vibe today is not good because shares of Reddit are down 10%.
02:52The company's U.S. daily active users, which I guess include you, Paul, but they came in below expectations.
02:59That offset a strong third quarter forecast.
03:02It also did not announce new data licensing agreements.
03:05And Wall Street was really hoping for this.
03:07Remember, Bloomberg recently reported that Reddit was going to explore a new potential deal with Google, but they didn't announce
03:13that today.
03:14And that was a disappointment.
03:15So they're saying, Wall Street's saying, look, Reddit needs to make these licensing agreements because of AI and how AI
03:21is going to change, you know, what it does day in and day out.
03:25The first seven or eight stories on the Bloomberg News scroll for Reddit are downgrades of price targets all across
03:30Wall Street.
03:31So there you go.
03:31There you go.
03:32Okay.
03:32I like that.
03:34So there you go.
03:34I mean, I don't get it.
03:39About Reddit?
03:39I try.
03:40Yeah, it's in my feed.
03:41All right.
03:41It's in my email feed.
03:42And I just simply, I guess I'm a fossil.
03:46I just don't get it.
03:48It's for the kids.
03:48You're our fossil.
03:49You're our fossil.
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