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00:00SNAP so snap disappointed investors today. I think pre market was up 30 percent I don't know. You have an update on that. Are we going to see much more of these stories where tech just needs to re-evaluate where it's at. So last night they came out with a pre warning and it was very much associated with macro weakness and the fact that that would put downward pressure on advertising revenues. So there is a real risk to any of these social media platforms that are dependent on advertising revenues that they're going to face a near-term headwind. The other near-term headwind for tech most of it's been priced into public markets. And actually we see a lot of opportunity which I want to come back to. But the other thing that needs to play out before we get a full recovery here is private markets. We have not yet discounted the bad news that public markets have. That's still a couple of quarters away. So it is just a valuation problem or is this really a forward guidance problem. Very big picture for technology is going to be super clear that we're facing cyclical carnage at the moment in public markets. But the long term opportunity here is actually exceptional. I think in fact with people step in here the long term opportunity is one of the best that we've had potentially ever. So where do you see the value. Yeah. So I think one thing I would say just to give people a sense on valuations to make people feel better that some of this has been priced into public markets already. Is that what it took. Energy five years to get the multiple cut in half. We've done that in technology in six months. So a lot of bad news priced in in terms of where we see opportunity from here. Going forward I would say first of all you have a secular opportunity. Actually if you talk to any of these CEOs and you've spoken to a lot of them Francine and ask them are you planning on cutting your enterprise spend. No one's going to say yes there is a secular commitment to spending on tech. If you're worried about inflation you're going to invest in software because that's one of the only deflationary things that you can do. You want to extend your competitive advantage. You need to invest in data which is positive obviously for the cloud. And by the way we know the geopolitical headwinds are very strong. You need to secure that data which is very good cybersecurity and then sadness underlies all of that. So these are incredible secular opportunities trait that are 40 to 70 percent down on a share price and valuation and therefore set up for a good long term returns.

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Goldman’s Koch Sees Tech Facing ‘Cyclical Carnage’

Katie Koch, CIO of public markets equity at Goldman Sachs, says private markets discounting bad news on technology is “still a couple of quarters away,” as she sees “exceptional” long-term opportunity in the sector. She speaks with Francine Lacqua at the World Economic Forum’s annual meeting on “Bloomberg Surveillance Early Edition.” (Source: Bloomberg)

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