Closing Bell - Closing Bell Overtime: Exclusive Interview With AMD CEO Lisa Su; Chime Board Member On IPO; Coinbase CEO Live From Crypto Summit 6/12/25

Episode Date: June 12, 2025

Jon sits down with AMD Chair & CEO Lisa Su at the company’s AI event where she unveiled a new raft of AI products. Our Steve Liesman breaks down the day’s data, dollar, and yields. Markets in focus with Ryan Detrick of Carson Group and Barbara Doran of BD8 Capital. Plus: Coinbase CEO Brian Armstrong from the Crypto Summit on what’s next for the industry, and Menlo Ventures’ Shawn Carolan, a Chime board member, on the company’s IPO and stock pop.

The end of regulation, Cardinal Health bringing the closing bell at the New York Stock Exchange, Innovate GBM doing the honors at the Nasdaq. Stocks? Looks like finishing largely higher with the exception of the Russell 2000 and the Dow transports. Oracle hitting an all-time high in the back with strong earnings and bullish commentary on its cloud growth. Tech heavyweights Microsoft, Nvidia and Broadcom all moving higher in sympathy. Microsoft at another all-time high. Chime, the big IPO of the day. Shares opening at $43, soaring 37%. The company priced its IPO at $27 per share. A number of Staples names hitting multi-year lows,

including Brown Foreman, ConAgra, and Campbell's Soup. Brown Foreman is at its 2013 lows. Gold's hitting a one-week high, though. That's helping the miners. Newmont, Harmony, and and barrack mining are all up more than 3% Well, that's a scorecard on Wall Street welcome to closing bell over time we're winner stay late I am John Ford along with Morgan Brennan

I'm live from AMD's advancing AI event in San Jose in just a couple minutes the company CEO Lisa sue It's gonna join me here live. We're gonna talk AI capex spending and increasing the company's advancing AI event in San Jose. In just a couple of minutes, the company's CEO, Lisa Su, is gonna join me here live. We're gonna talk AI, CapEx spending, and increasing competition. Well, thanks, John. Also ahead, a first on CNBC interview with Coinbase CEO, Brian Armstrong,

on their partnerships, and one of Chime's board members and investors on today's IPO as well. But let's first begin with the US economy, because yields are falling again after the latest read on inflation came in lower than expected and this afternoon's auction of 30 year bonds, U.S. dollar index falling to its lowest level in more than three years.

Meanwhile, president Trump pressuring Fed chair Powell to lower interest rates, but saying he will not fire him. So here to break it all down, CMBC Steve Leesman, Steve. Hey, Morgan, yeah yeah the president once again haranguing the fed chair to lower interest rates saying the U.S. could save 300 billion a year with a one percentage point decline in rates and arguing that inflation remains low enough for the fed to cut. While the president's math looks to be about right, the question is whether the fed lowering rates would have the desired effect. The U.S. pays an average rate of 3.36 percent on its marketable debt according to Haven analytics. Over a 20-year period that average has sometimes moved up and down with the Fed

rates and sometimes it's completely ignored as you can see in the middle there. More so the average maturity of U.S. debt about six years so while while it could help, it would take time for lower rates to filter down to the average rate paid by the government. But more importantly is whether the long end of the curve will follow the Fed. The two-year tied to the hip with the Fed funds rate. The 10-year it can have a mind of its own. It could even rise amid concerns the Fed is too dovish on inflation. The key for the Fed is that inflation remained low over time and that the tariff impact proves to be benign. We had it for the first month. They're going to want to see it over several months.

The key for the president, inflation is low now and he wants those cuts now. Morgan? Here's the sticky thicket to me, Steve. If you have a bond market and particularly in the longer end of the curve that is revolting against the U.S. debt load and deficit spending, but what's contributing or helping to increasingly contribute to that deficit spending is interest rates. How do you get past that?

Well it's the deficit spending that is the biggest part of it or the lack of revenue that's the biggest part of it. Obviously interest rates and the interest expense is a piece of it, but you can't just go and order rates to decline. You see today rates went down when the inflation came down. Perhaps the president would like to order rates to decline. I don't think he has that privilege yet.

So the issue, Morgan, becomes the idea that you have to kind of bring them along with you. The Fed controls the overnight short rate. The 10-year is way out here, and the 20 and the 30 even further out. So there's a very tenuous connection between the two. You have to kind of finesse it, and one way to finesse it is to show, among other things, that you have inflation under control.

Another way to do it, as you suggested in your very question, Morgan, is to show you have the deficit under control. And my guess is the latter is the bigger part of it. All right, Steve Leesman, thank you. All right, Morgan, as we just mentioned, I'm here at AMD's Advancing AI event in San Jose, California, where AMD just unveiled a slate of new AI hardware, software, and systems designed to compete with NVIDIA and others. It shares a flat for the year, underperforming its major peers, but have rallied 17% in the

past three months, running here in San Jose. An exclusive interview is Lisa Su, AMD's CEO and chair. Thanks for having me here. Thanks for being here, John. So talk to me about these systems. You got a chip sitting there next to you that's, I guess, fresh out of the oven. What is it that you're announcing here? What level of competition does that raise you to with the others out there? Yeah, absolutely. So first of all, it's been a big day for AMD, really exciting. I love talking about our new products, you know that. So we just recently announced our MI355 chip.

This is our newest AI chip and it is fantastic. It's the best inference accelerator out there in the market. And, you know, if you look at what's happening in AI today, we're just seeing so many more use cases, John. Like, people are using AI everywhere. And so one of the most important things for our customers is to get more efficiency from their chips. So when you think about tokens per dollar, that's kind of the metric that is used.

And this chip will give you 40% more tokens per dollar, which just gives you the opportunity to offer AI at a much more affordable price across the world. So yes, very exciting. We also previewed our 2026 lineup. We're on an annual cadence now of new accelerators, and we're not just doing chips, but we're doing big rack-scale systems.

And so all of that was part of our announcements today. And there investors are puzzling over how the innovations will translate into share gains versus the likes of Nvidia. So why is it beyond chips now? And why is it about racks? That was a big part of the ZT Systems acquisition. Put that into perspective with the go-to-market and the design component to satisfy the customer need. Yeah, absolutely. So look, we're really excited about the momentum that we're seeing in the AI market these days. You know, if you look today, you know, seven out of the top ten, you know, model

builders and AI companies are using AMD products, you know, that includes Meta, Oracle, OpenAI, Sam Altman was here with us today, Meta and Oracle were here, XAI, Tesla to name a few. And when you think about what they need, what they really want is the latest generation hardware that gets into the data center and then gets into serving production workloads as fast as possible.

And so to do that, you require, of course we require chips, but we're also putting a significant amount of investment into the software layer to make it just super easy to use. And we're also building rack-scale solutions. So we just completed our ZT acquisition. We've added a thousand design engineers and the whole purpose is so that we can help our customers get to the market with our AI solutions as fast as physically possible. You've got competition with NVIDIA

at the high end, certainly. Then the hyperscalers, the big cloud providers who are also not big AI providers, AWS, Azure, Google, they've got their homegrown AI chips that they're trying to use as much as possible to keep their costs lower, their margins higher. How do you play to both ends of that and win? How does openness fit into your strategy?

Yeah, well, John, when you think about it, I view, we're still in the very early innings of AI. And frankly, as much as we've seen a ramp up in AI, we have sort of said that the market is going to grow over 60% annually for the next number of years to over $500 billion in 2028. That's a huge market. And in that market, what people want is the most flexible

and the most programmable architectures out there, and that's really what we're building. And the key point in this is, again, we believe in deep co-development with our partners so hardware, software, systems coming together making sure that we have the right compute for the right application and you know that's what we've shown. If you look at just how much improvement you know I can just give you some stats right. If you look at the solution that we're just talking about, the MI-355, you know, it's- Hold it up high.

Oh, hold it up high, yes. I want to make sure everyone gets to see my new baby here. We're very happy that it is now out in production. But, you know, this is like three times the performance of just what you saw last year. So, you know, that's just how much value you're getting. And we previewed our next generation, our MI 400 series, and there we're gonna see like 10x types of improvements.

So that's how much we can get from the hardware and working closely with our partners. And you asked about Open. Open is the foundation of what we do at AMD. I'm a real believer in the fact that an open ecosystem is how you get the best innovation into the market. So we have thousands of developers here today, they're playing with our hardware, they're learning our software, and we want all of them developing on our

stuff so that we get the benefit of all of that innovation and they get the benefit of bringing their best ideas in. Sometimes closed is faster, comes to market faster, and can be more profitable. If you look at Apple's approach, is AI going to be different? Well think about it this way. I think if you look at history, you have examples of closed and open. Look at sort of data center systems, right? You had Unix being the operating system of choice to start with, but Linux actually has

taken over because it's open. And people weren't quite sure. And look, Apple's a great ecosystem, iOS is a great ecosystem, but there are limitations to what developers can do there. And you see, on the other hand, Android is an open ecosystem, and that allows sort of an alternative there. So look, I think you're going to see both, but I believe in the end,

open is going to win because there's so many smart people out there, and there's so many great ideas. People want to be able to have control of their own destiny, and that's what an open ecosystem is all about. Speaking of which, how did DeepSeek change the conversation a few months ago, and maybe even what customers are demanding,

the level of experimentation that developers are doing? Yeah, it's a great point. I think I'll talk a little bit about DeepSeek, but maybe overarching, probably the largest trend we're seeing in AI is that the workloads are changing so fast. Like people are innovating every week. You know, you see new models coming out from, you know, folks like OpenAI and Google.

You know, DeepSeek was, you know, kind of a very interesting injection into the AI market because, you know, frankly, it was an open model and it did things somewhat differently because, you know, there were some limitations in the compute that they have. And whether you're using the model or not, you've learned things from its openness and people have adopted some of those techniques into their proprietary models.

So my main point is we can all learn from each other and the faster we learn, the faster we iterate, the better the answer is going to be. And I think that's the lesson of an open ecosystem. M&A, I think you've done about nine acquisitions in the past three years, three last month. What does that say about the velocity that you're trying to achieve and why you're reaching outside AMD for it? Well, look, AMD is a growth company. That's our mantra and you know

we are very fortunate in the sense that we have access to huge markets. We have a fantastic balance sheet and we're gonna use that balance sheet because I really believe that this is the best time for you know AI investments to really pay off. Being still very early in the cycle we want to make sure that we have all the pieces for us to go faster. You know, frankly, that's what our customers want, is how do we innovate faster?

So we've made a number of acquisitions. Most recently, we closed our ZT acquisition, which brought in RackScale systems. We've done a number of software acquisitions that have helped really broaden our software capability. Just last week, we announced a couple with, you know, Briam and Lam and I joining us, but from, you know, Nod.ai, Silo.ai, all of these companies have been

great additions to our overall AI capabilities. But John, we're also doing a number of strategic investments. You know, I mean, the fact is, you know, big companies have tremendous capability, but some of these AI native companies are extremely, extremely capable, and they have great ideas, and so we want to learn from them as well, and that's why we're doing a bunch of strategic investments. How, if at all, are these geopolitical tensions affecting demand?

Well, there's no question that we have to be very mindful of the geopolitical situation. We are at a place where AI technology is so important from a national security standpoint, and we get that. We do spend a lot of time with the administration to make sure that we are fully understanding the framework in terms of what we can do. The fact of the matter is AI demand is very strong. And the thing that we're seeing that's actually pretty interesting is people used to buy AI chips

mainly for training and pre-training these large foundational models. That's what the largest builders do. Training continues to be important, but we're actually seeing a significant uptick in inference applications. And that just says that there are more people Training continues to be important, but we're actually seeing a significant uptick in inference applications and that just says that there are more people using inference and you know from our standpoint When you think about things like you know you hear about people talking about agents and agentic AI

That requires not just GPUs, but it also requires CPUs and traditional compute So we're seeing the benefits of that in our overall market. And the difference between training and inference is like the difference between practice and actually playing the game. That's right. It's one thing to have a plan. And you have to develop that using AI. But then when it's time to actually give answers,

do business, that's where inference plays in. Every time you ask a question, every time you ask ChatGPT or Grok a question, that's an inference query. And the longer the question you ask a question, every time you ask ChatGPT or Grok a question, that's an inference query. The longer the question you ask, the harder the question you ask, the more compute you need. That's what we do. We provide the compute to do that. How quickly can we stand up more and better chip production in the US?

For sure. Look, it's a huge priority for us to get geographic diversity. It's a big priority to get more manufacturing in the U.S. I think we've seen some big strides. So the progress that's been made on the silicon side, for example, in Arizona with TSMCs, new investments as well as some of their announcements. We have some of our chips running there right now and they look really, really good. We're continuing to work across the board in getting more manufacturing in the United States and it's just good business to have good diversity.

All right, Lisa Sue, CEO of AMD. Thanks for having me here. Thanks for being here, John. Well, meantime, John, Adobe earnings are out. Pippa Stevens has the numbers for us. Ten cents revenue coming in at 5.87 billion also ahead. And that was record revenue. Now looking at the segments,

both digital media revenue and digital experience revenue, both topped estimates for the quarter with total digital media revenue and digital experience revenue both topped estimates for the quarter with total digital media ARR also surpassing expectations. Now the guidance is good here they raised their full year 2025 revenue and EPS targets with the new ranges also coming in ahead of estimates. The stock initially was in the green but now you see it's down here about one and a half percent. John? Yeah, Pippa, thanks. Morgan, this is interesting. It's hard to react immediately to the stock here. Adobe has not been responding well to earnings. Usually it's been because of the guidance, and Adobe has been guiding cautiously, but a lot of people want to wonder about Firefly uptake and Firefly monetization.

Adobe has been saying they're taking their time making sure that their AI technology, Firefly, is working well for enterprise customers and customers overall, and that they're rolling out those monetization capabilities over time. Perhaps these initial numbers suggest that, but of course we're really going to want to listen to the commentary on the call about the amount of uptake and overall how customers

are responding. Yeah, record revenue for the quarter. I mean, John, just raising EPS and revenue guidance, the fact that you just noted historically, they tend to be a little more cautious with their forecast. So the fact that they raise guidance, perhaps a good sign here and of course coming on the heels of Oracle earnings, which we got right here in overtime yesterday and which sent those shares to record highs as this AI rollout does seem to be continuing and seem to be propelling the market higher.

Yeah. I'm just, I'm practically across the street from Chantinou right now here in downtown San Jose. I wish I could shout over and say hi, but I'll also jump on a plane in just a few minutes and be with you again tomorrow, Morgan. Well, safe travels and wonderful work and insights out there in California with AMD just now. So hurry home.

All right. Well, we've got RH earnings out as well. Melissa Repco has those numbers for us. Hey, Morgan. So shares are up by double digits about 15% after the luxury retailer missed on revenue but beat on earnings. RH reported revenue of 814 million compared to estimates for 818.1 million and it reported earnings per share of 13 cents on an adjusted basis compared to a loss per share that was expected of 9 cents.

It's worth noting Morgan that the company had slashed its guidance significantly three months ago. In a letter to shareholders, CEO Gary Friedman noted a few things the company is trying to do to deal with tariffs during this time, one of which is delaying the launch of a new concept it had planned for the second half of the year until it gets more certainty. The other thing it's doing is accelerating its move of sourcing out of China. So he said they're about 16 percent sourcing and they plan to drop that to 2 percent by Q4, Morgan. Wow. That's a big change.

Yes. You see enough companies doing this sort of thing. It speaks to all the different dynamics and impacts that a tariff scenario such as this can have. Melissa Repko, thank you. Shares of RH spiking about 15% right now. Well, the S&P 500 was also higher once again today, up nearly 20% from the April lows. It's within 2% of a new record high. So coming up, our next market guest says this rally still has more gas in the tank. He's going to break down why when overtime returns. Welcome back to overtime. Well, stocks finishing the day in the green, the S&P 500 and the

NASDAQ are tracking for their third straight positive weekly performance of more than 2% so far this month. Is the market uncertainty behind us or should investors expect more bumps ahead? Well, joining us now, Carson Group Chief Market Strategist Ryan Dietrich and BD8 Capital Partners CEO Barbara Duran. It's great to have you both here. Ryan, I'm gonna kick this off with you. You're here with me on set. You were bullish back in mid to end of April. It was a contrarian call at the time. You're still bullish. Why? We are. First off, thanks for having me in person. This is neat to be here like this. This is fun. have you. This is fun. There's a couple reasons.

I think, just look at today. Look at today. I hear all these people saying, breath this week, market breath this week. But Morgan, when you look, we're in all time highs on the S&P 500 advanced decline line, on the NYC advanced decline line. All 11 sectors in the S&P 500

are above their 50 day moving average. To me, that says there's a lot of breath. And one more thing, I don't know if I've heard this mentioned yet today, that says there's a lot of breath. And one more thing, I don't know if I've heard this mentioned yet today, that bond auction was pretty solid. Remember three weeks ago we had that bad bond auction and the stock market sold off, yields went up, nobody wants to own United States?

Well today it came in really solid. So there are some real positive things to say to us, this bull market's alive and well. Barbara, do you see it the same way? Is the bull market alive and well? Would you be buying here? I would not be buying here, but it's hard to argue with Ryan because things right now do look pretty good. You just had the PPI today, excuse me, and CPI yesterday. Inflation continues to come down,

but you are clearly seeing signs of a slowing economy with job growth. And no matter where you look, whether it was the jobless claims higher than expected today, the continuing claims the highest since late 21. You look at manpower stats, job openings down, posting, the non payroll. So you're clearly seeing a slow down there. And we do know that the tariff impact has yet to be felt. I mean, it was only just in early April that we had the widespread tariffs

and the ones that were shocking in number. And so you're just going on May data. And a lot of companies did do forward ordering, so they have their inventories. And if you listen to the beige book, the Fed beige book last week, they talked about anecdotal talks with businesses who said they expect to be able to pass costs on by August. So we haven't seen it yet. And we don't know what the impact will be, which is why the Fed is on hold and why they're saying we need to see more. But right now the market could move

higher but at 22.5 times forward earnings I don't think there's a lot of upside. And again with all the uncertainty still out there I find it hard to see that there would be new highs in the market on the indices. We just had two straight days, Ryan, of encouraging inflation data. Jobs, I realize continuing claims came in higher than expected today. We've been seeing that. But in general, the hard economic data has been solid. Is that an encouraging trend or is it the calm before the storm? Barbara brought up some great points here. There are clearly some cracks. Like you said, labor market, maybe there's some little cracks in the foundation, but overall we think the economy's still pretty solid. You know, the consumer's still solid. Look at confidence, right? Consumer confidence recently jumped, small business confidence jumped,

and CEO confidence jumped. I know before I came on you teased the up 20%. So I'll talk about that for a second. S&P's up 20% the last two months off those April 8th lows, we know that. Only five times in history have I seen, have we found the SP 500 up that much in a two-month period off the lows in 74 off the lows in 82 2009 2020 and then late 1990s in what I'm getting at this blast of

strength that we've just seen is not consistent with a short covering rally or you know just as bear bear market rally it looks to us like I know it sounds weird to say like almost like the start of a new bull market. I would disagree. I think we've been in the bull market since October of 2022, but we're just getting going again, and this is still looks really solid to us. Barb, wanna get your thoughts on tech

and what we've seen, whether it was Oracle yesterday, we just got some pretty strong results from Adobe that the market does seem to be digesting. Microsoft trading at a record high, I could go down the list. Yeah, well, you know, I think all these companies, what they have in company, it's really the AI play. And that was even with Adobe was the big question.

They have their adding generative AI into all their products. They're sort of phasing it in and trying to scale it up. And so we talked earlier, we haven't seen the in-depth numbers here, but that's what's happening with Oracle, IBM, you know, they're really getting it right in the demand. And so many people said, and I agree, that we are in the early innings of this AI phenomenon, where people are still figuring out how to apply it

and where they are, they are seeing big efficiency and productivity improvements with their businesses. So I think that continues to be, and will continue to be, the underlying theme. And that will ramp up, and I think these companies have, a lot of them have long runways of growth. OK, Barbara, Geran, Ryan Dietrich, thanks for joining me here with the S&P finishing up about four cents, one percent 60, 45 is the level there.

Well, Bitcoin pulling back slightly today, but still within a few percent of its all time highs. This comes as Coinbase hosts a state of crypto summit, along with a recorded message from President Trump who said he's proud to be the crypto president. Up next, Coinbase CEO Brian Armstrong joins me with more on the state of the industry right now. There's so much to talk about.

Overtime, we'll be right back. Welcome back to Overtime. Coinbase hosting its state of the crypto summit today where it announced a slate of new products and partnerships, including a deal with Shopify and a new credit card Bitcoin has been on a tear since President Trump was elected it's up 55% Coinbase up nearly 25% but joining us now live from Coinbase's state of crypto summit is Coinbase CEO Brian Armstrong. Brian it's great to have you back on the show a lot to get to today. The first place that I want to start is the fact that the big news of this event is really the fact that you seem to be expanding more into payment infrastructure and into consumer finance. So let's start with this credit card. Why?

Why now? What does it bring to the market? You're right. Coinbase is coming into payments in a big way. And for years we've been working on the building blocks here of having a stable coin that's trusted and regulated with USDC with a more scalable blockchain like base and these pieces are now finally ready where we're ready to bring this to market so as you said we launched this credit card with Amex that gives you up to 4% cash back in the form

of Bitcoin whenever you spend crypto. We announced this partnership with Shopify to bring USDC payments on base to Shopify merchants. And we also launched a powerful set of payment APIs and a new product for startups and medium-sized businesses so that they can power more of their financial lives with crypto. Yeah, I do want to dig a little deeper

into this collaboration with Stripe, with Shopify, using Circles, USDC, Stablecoin. In general, how does all of this, we've been talking about it for years, the fact that at some point, Bitcoin and other cryptocurrencies are going to become some form of payments, there's going to be utilitarian uses for them. Does this signal that we are entering that phase and if so. What does this enable to actually see it realized. Yeah so I think this is clearly cryptos next daily use case you know crypto started off

with bitcoin that is a very important piece of the this new economy with digital gold it's a check in balance against you know runaway deficit spending and more and more people are. Buying bitcoin when they see- unchecked you know deficit spending so. and more people are buying Bitcoin when they

see unchecked deficit spending. So money needs to be a store of value. I think Bitcoin is providing that. But money also needs to be a medium of exchange. And that's what stablecoins have now brought to market. I'll just give you one anecdote where for years, Toby Lukey at Shopify and I, we would meet and we'd think about, okay, how can we get this ready for prime time? Some of those pieces fell into place with a trusted stablecoin, a scalable crypto network,

but the last piece that we really had to build was actually a new smart contract that replicated some of the functionality of credit cards that people use in e-commerce. People don't realize this often, but when you go pay for something in e-commerce, you know, the merchant does what's called an authorization on your card, but they don't actually capture the funds until they reserve the inventory and they calculate taxes, they have to figure out shipping. And so credit cards have this kind of off capture, void refund functionality. And with Shopify and Coinbase, we actually were able to replicate that in a smart contract on chain, it's open source,

and so people have been talking about the programmable money that crypto can bring for years, and it's now finally ready. Stablecoins coming into the mainstream here. Circle went public last week, hugely successful debut. The USDC Stablecoin. For folks that maybe don't realize it that you are a partner on all of this and that 50 percent, maybe more than 50 percent of that USDC revenue actually comes to Coinbase. What do investors need to know and understand

about this partnership and how deep the roots lie? about this partnership and how deep the roots lie? Yeah, well we're incredibly happy that we're working with Circle over this many years and they've been a great partner. But I think you're right, the market probably is not fully valuing that relationship in terms of Coinbase. It's a huge business for us with USDC,

you know, we're the preferred distribution partner. So we're excited just to keep building out products and services with Circle that increase adoption. I know they have a number of amazing products coming to market as well. And it seems like at this point, every FinTech, every bank, even every Fortune 500, they're all thinking, what is our stable coin strategy?

How are we going to integrate this? And so they're reaching out to companies like Coinbase and Circle to provide these products and services. Just to give you one other stat, stablecoins, the market cap grew 50% year over year. This was totally uncorrelated with other crypto trading volume, by the way, and the price of Bitcoin. So it's truly a separate new category. And, you know, last year there was about $30 trillion in stablecoin volume in terms of payments. And so it's hard to imagine that that scale is just growing so quickly.

And it makes sense because these rails are, they're faster, they're cheaper, they're more global. Payments flow to the path of least resistance, and crypto rails are now the most efficient rails globally. Yeah, and of course we have legislation that's making its way through both houses of Congress right now to help ensure rules of the road where stablecoins are concerned.

You yourself just, or Coinbase, just added David Ploof to the advisory board as well as you continue to focus on policy too. I do also want to ask you about this cyber attack that was disclosed about a month ago. In a regulatory filing it said you could see a hit of up to $400 million that had breached an account data of a small subset of customers. What do those customers, what do investors need to know now that we're a month out from that attack? And what have you had to put in place

to make sure that it doesn't happen again? Yeah, well, Coinbase being the largest crypto company in the US, we unfortunately do have attackers coming after us and that's one of our core value propositions is making our customers safe. So in this case, unfortunately we did have some attackers try and bribe some of our customer support agents

to get information. This was things like name, date of birth, address that they could use to try to socially engineer our customers. What we did was we made every customer that was affected by this whole. Less than one percent of total customers had information affected by this.

Then we went and hardened our systems to improve the tools that our customer support agents use, for instance, so that this can't happen again. We also put out a $20 million bounty on the criminals that perpetrated this attack, and we've been getting some really great tips coming in. So we've been working closely with law enforcement, and hopefully these folks can see the inside of a jail cell soon. Okay. Brian Armstrong, Coinbase, thank you for joining me today. Thank you for joining me today. Thank you. Well, Chime Financial soaring in its debut today as well. Up next, we're gonna be joined by an early Chime investor

for more on the company and the recent flood of IPOs. It closed up 37% from that IPO price. Check out shares of Voyager Technologies too. The space and defense tech company pulling back today after soaring in its IPO yesterday, down 12%. But despite today's pullback, the stock is still above its offer price of $27 and its opening price of 43.

Stay with us. Welcome back to overtime. Well, stocks closing higher across the board, small gains, but keeping back towards record levels. Shares of MP materials jumping late in the session, spiking really, reports that the White House is planning to use the Defense Production Act for rare earth materials and that MP could be a funding recipient. We'll actually be joined by the CEO of MP materials for an exclusive interview next Tuesday right here on overtime. But let's check on a couple other overtime movers right

now. You got Adobe shares turning slightly higher, about half a percent following those results. Earnings and revenue both beating estimates. Guidance also better than expected. RH, formerly known as restoration hardware, that's up nearly 20% in overtime. Beating on earnings, a loss was expected. Some comments on tariffs.

The company is expecting a hit to revenue due to shipping disruptions and delaying the launch of a new concept. It's hoping for more certainty on tariffs. The company is expecting a hit to revenue due to shipping disruptions and delaying the launch of a new concept. It's hoping for more certainty on tariffs and in the meantime shifting more of its supply chain away from China perhaps more quickly here. But it is also time for a CNBC News update and for that we turn to Kate Rogers. Hi Kate. Hi Morgan. Air India has confirmed at least 241 people were killed when a Boeing 787 Dreamliner headed to London crashed shortly after takeoff this morning. The carrier added there was a sole survivor from the plane, a British national, who's

been taken to a local hospital. According to the country's Minister of Civil Aviation, India is launching a formal investigation into the crash, while the NTSB said it's also sending a team. The cause of that crash wasn't immediately known, and it could take months to figure out. Shares of Boeing, its suppliers, and other airlines were down in Thursday trading. Homeland Security responding this afternoon to an incident earlier when California Democratic Senator Alex Padilla was forcibly removed from a press conference in LA, then taken

to the ground and handcuffed by federal agents. Spokeswoman Tricia McLaughlin said, the Senator Padilla did not identify himself or have his Senate security pin on. However, he can clearly be heard on the tape identifying himself. She says the Senator quote, lunged at Secretary Noem and that Secret Service thought he was an attacker

and acted appropriately. Morgan, back over to you. All right, Kate, thank you. Well, Chime Financial shares soaring 37% after going public today. Up next, board member and early investor, Sean Carolyn, joins us on the company's future and the outlook for the broader IPO market.

Stay with us. Welcome back. Another day, another wild IPO. Chime Financial shares surging 37% in their IPO debut today at the NASDAQ. The company is selling shares at $27. That was above the expected range. It opened at $43.

So with us is Chime board member and Menlo Ventures partner, Sean Carolyn. Sean, it's great to have you on the program. And I'm gonna start right there. What's got investors so excited about Chime? Is this sort of this new era of FinTech and what Chime represents, or is it a company specific story? I think every company is a company specific story,

and Chime set out with a new vision of how banking can treat their customers, reimagining just from the ground up, like what does it look like to be a financial services institution that supports people, instead of pilfer's money out of their bank accounts and they've just built an incredible company, incredible team, lots of happy customers and a great business. So I think investors will always get excited about that. We know deregulation is coming for the traditional banks. It's something Jamie Dimon over at JP Morgan's been very vocal about over the years is this idea that

FinTech startups have had a lot more leeway and leverage to operate and build out their products in this marketplace versus the big banks. If you do see deregulation come, does that change the competitive equation? I don't think so. I mean, at the end of the day, it's about do you have a product that customers love? And I think one of the things that that Chime has set out to do is serve everyday Americans that make under 100k a year. And it's it's well known that's a category of of people that the big banks just really don't go after. And that's how they build the company from the ground up to design the services and the

offerings and the software and the whole system in a way that lifts that group up and treats them fairly. So I don't think in many ways it's sort of like a tide that's raising all boats. The bigger banks can do a better job with their customers and Chime will do a great job with the 70 percent of Americans that fall into that category. So Chime is the latest in a wave of successful debuts we've seen to the public markets. There was Voyager Technologies yesterday, Circle last week, there have been a number of others. Do you think the IPO window has now opened

here and we'll see more companies, especially growthy, more mature startup companies come to market now? I do think that it's open. Chime is a company that's achieved a lot of scale, achieved a great business. So I think a company like Chime can get out even in less desirable of a market. But I think that the fact that there's now several of

these companies that have come out, in Chime's case, you know, range was 24 to 26, priced above the range yesterday at 27 and then traded up to 37 today. When you see a company that has built, you know, something great, and then the public markets also see that greatness in them and purchase the stock. It's comforting to other people who are considering taking the plunge. And you have invested in quite a number of companies, many of them consumer facing. What are the technologies or capabilities that are percolating in the private market that you're most excited about right now? Boy, I hate to be one of the road correctors, but AI is truly a transformative technology and one that Menlo is heavily investing in.

Our consumer thesis remains the same. What are people trying to do and how do you help technology do it for them better, faster, cheaper? But AI is this ingredient technology that we really believe is going to transform a lot of consumer experiences. So we're big investors in like Anthropic. So, you know, that's an LLM that powers a lot of these services. And they're showing up inside of coding agents like Cursor and inside of, you know, legal agreement analysis and really

pretty much every area of the enterprise and consumer experience is being affected by this new advent. So it's an exciting time to be an investor. There's been a lot of debate even within the AI community, if you will, about just how profitable some of these LLM creators are going to be over the long term. Do you see a scenario in which you see an anthropic or an open AI or some of these other, I guess, brick layers for this generative AI environment

actually coming to the public market? At some point, for sure. I think that every great company starts with having solved an important problem. That's really, you think of value delivered to customers, and then from there you can capture some of that value for yourself. This is an early market and there's a lot of chairs in the musical chairs game that people are trying to get in front of this.

And so you see companies spending ahead of, and obviously taking on losses. I mean, that's what our industry is for, is hey, there's a big opportunity here. Customers are happy. They love it. But, you know, the cost structure is high or whatever else. And, you know, we know computing, I've been investing here for 23 years, our firm's been around for 46 years. And like a couple things you can count on is, you know, CPU cycles are going to get cheaper, storage is going to get cheaper, networking is going to get faster. You know, the wheels of the technology underpinnings will continue to

move. And so that brings costs down. Sean Carolyn, great to have you on. Thanks for joining me. Thank you for having me. Still ahead, the Army's top military official on how the service is creating the fighting force of the future. As the U.S. Army rings in its 250th birthday this weekend, a seismic shift is underway for how the service operates, how it buys weapons, and how it prepares for the future of war. I recently traveled with the Army's top military official to Fort Johnson in the Joint Readiness

Training Center's box. It's a massive combat training site in the Louisiana wilderness to see how that shift is taking shape. In western Louisiana, this transformation and contact brigade is training for the battlefield. An all new military unit, this TIC, the 1st Brigade of the 101st Airborne Division, is one of just four. What makes this one unique is the scale. We have done parts and pieces of this for every TIC brigade.

We've learned, we've evolved, the technology's improved, and we're trying to maintain pace with that." America's oldest military service is embarking on its biggest restructuring in a generation, the Army Transformation Initiative. The move is spearheaded by the Army's top civilian, Secretary Dan Driscoll, and its top military official, 4-star General Randy George, Chief of Staff. We know our formations want to move faster and we are trying to get the whole system to move much more rapidly.

So a big part of that is stop buying the things that we know are not going to be as effective on the battlefield so that we can infuse our formations with the things that really will be effective. This is the Army's most modern brigade with almost 400 drones, autonomous vehicles, and an AI-enabled network. Drones made by Skydio and Shield AI, Starlink-enabled internet connections, a General Motors Infantry Squad vehicle retrofitted to drive autonomously thanks to Silicon Valley startup Applied Intuition.

And all of these companies, almost none of them traditional defense contractors, have engineers embedded with the 2,000 soldiers. By having some engineers on site, we were able to discover that wasn't some crazy electromagnetic issue. It was actually an issue in the settings where the drone was set on low power. So instead of going through weeks of trying to understand how that happened,

within 24 hours we'd solve the problem. 40 new technologies, 10 different companies, and a mission of continuous transformation. Nobody's still using the VCR. We don't need to continue to buy a VCR just because somebody sells it. We need to have the latest technology that's on the battlefield. As one investor put it to me, the Army is essentially dozing itself, not just cutting

costs but shifting priorities to where it sees, to what it sees as more efficient uses of its budget. It's also leaning into cheaper weapons systems like drones, and there's a big opportunity to buy them differently. So happy birthday to the Army. That does it for us here at Overtime.