tv Bloomberg Technology Bloomberg April 27, 2022 11:00pm-12:00am EDT
>> from the heart of where innovation, money and power collide, in silicon valley and beyond, this is bloomberg technology with emily chang. >> i am emily chang in san francisco and this is bloomberg technology. a big poster in his pop for meta-and sharp contrast to its plans last quarter. how facebook is holding onto its users. we will talk to jason goldman.
he is part of the founding team and an early board member. what does he think of elon musk swooping in on his version of free speech? and we will talk to the cofounder about the new play in telehealth. we will get to all of that in a moment. big tech earnings continue. meta-and qualcomm out. quick still to be driving the market higher. the tech heavy nasdaq ventured into negative territory. it did jump as much as 1.8%. that is one point today. almost 4% yesterday. seeing a rebound there. the yields were higher but it
did not seem to scare off equity investors buying stock. it is a really big day for big tech earnings. we will talk about meta-in just a second. i want to look at qualcomm as well. that beat all analyst estimates. let's switch up the board and look at meta-platforms. for the pop we are seeing here. they are up 16% and it is all about the projected users they had in the first quarter. now what we are seeing are some concerns that they are not losing users to social media competitors like to talk as much as we thought. as i talk about big tech, i want to look at the year-to-date gains and losses not just for meta-but other tech stocks here.
these are two of the worst performing stocks in the s&p 500 year-to-date and you can really see the diversions between those two names and also microsoft and apple. these names used to be grouped together as one monolith, now we are really starting to see microsoft and apple is still largely in the red. really outperforming those. >> maybe the saying is not the saying anymore. thank you so much. i want to stay with meta-and bring in angela of cfra. this is after facebook daily users declining for the first time in a decade thus quarter. that number growing this quarter. is this a blip or a long-term thing? >> it seems like meta-was really setting the bar extremely low here.
despite the fact that you had the ukraine more -- this is a country that grew 6% on the daily active users. we had pretty good users on that front, growing across every radius out there. this is a company that will continue to see growth. they have probably come very modest in nature. maybe it will be closer to low and single-digit growth but nonetheless i think it will be the fact that we could have seen negative numbers in the coming quarters. >> mark zuckerberg in the earnings release saying we made progress this quarter across a number of key company priorities
and we will remain positive that our long-term roadmap will unlock. they reduced their expenses forecast. a lot of investors have been skeptical about the amount of money that facebook and meta-are pouring into their virtual reality dreams. how big of a deal is this? >> we left the number unchanged. i think that is a positive sign. this was the fact that they were spending way too much on that initiative. and that they were going to squeeze the margins for the foreseeable future. ultimately i think it is a good thing they are tempering some of those growth numbers. they are spending significantly. they will need to continue to.
they do have a problem in the sense that they are catering to the wrong ecosystem. they have to get younger and get younger quick. that is the point of the whole meta-verse. they got an opportunity here. companies like apple and sony are pushing out some of their initiatives of the metaverse into 2023. i wouldn't take the foot fully off the gas here but i think this is still the right move. >> why are investors focusing so much on the good news and not the bad? their guidance on revenue is a little light and not great add numbers from snap, youtube, what are we going to be seeing here over the longer term? >> this is a company that was trading less than 13 times our 2023 estimate.
the bar was set extremely low. we are talking about trading at evaluation where -- the reason i think you have seen this change after hours is because it looks like the type of scenario has been left off the table despite the fact that the revenue guidance is below what the industry expected, i just think there was a lot more going on into this quarter. >> that is a strong word for a company with rebilling users even if growth misses estimates. thank you so much. qualcomm is surging in they trading. that compares to average estimate of 9.9 billion.
the chipmakers are expanding into new markets. he will be joining me right here on bloomberg technology thursday at 5:30 p.m. eastern on bloomberg television and you don't want to miss it. coming up, we will talk to one of the founding members of twitter. jason goldman ran product in twitter's early days. what he thinks of elon musk's deal. what he thinks it means for twitter and employees. that is next, this ♪
will he see is to have -- rules he seems to have already violated. this is the deal that goes through, joined by max. musk has already tweeted some disparaging remarks about twitter's chief legal counsel in response to an article about her crying over the deal in a meeting. how likely is it that this kind of behavior will actually get musk into regulatory trouble? >> i think it is pretty unlikely. this will come down to your definition of disparaging. first of all, whether twitter will argue that it is disparaging, i think that musk can say i am just commenting on this public debate and there are a bunch of trolls coming in and coming after this twitter exec and harassing in uncomfortable and threatening ways but musk did not do that. i think that would be his argument and i have a feeling that -- i don't think it is
likely that there will be any kind of consequences in terms of legal risk but i do think this does raise questions about what kind of company elon musk will run. when you going after your own executives, these people are going to work for you. they will be responsible to you. it does not seem like the smartest thing to do. correct there is a contingent of people that are not excited about this and there is a contingent that are very excited about this. can we expect anything but more of these kinds of tweets? it could be a few months. >> we have seen musk fight with the sec -- fcc for four years or so. he has not backing down. he was reiterating his lack of respect for the san francisco office of the fcc.
there are rules and then what he is going to do and he has become very successful at pushing the envelope. i think he will continue to do that. they are trying to create some carveout so he would not immediately violate the agreement. they said that elon musk can tweet about the deal but he will find ways to push the boundaries and be himself. >> we will be solving at all tweet by tweet. i want to continue this conversation with a man that knows a lot about twitter. he was part of the founding team at twitter and a board member from 2007 to 2010. jason goldman is joining me now. good to have you here. i know this raises a lot of emotion. now that you have had a couple of days to digest this, how are you feeling about elon musk buying twitter? >> it is a disappointment because i think the company could use great stewardship. but he's -- what he is revealing is how serious -- unserious a
person he is. >> some would say that it is a disappointment that twitter has not grown faster or racked up more users and become more influential. how would you respond to that? >> 100%. the business performance of the company has always dragged behind the cultural importance of the country. we have always known it has a much bigger footprint with journalists, media, celebrities, musicians, it has this huge cultural footprint, i think that is what made it an attractive opportunity for elon. >> what you think is missing from the conversation? pundits talking for three weeks. we heard from you himself, a lot of debate. what you think is missing given your vantage point and history with this company going back 15 years? >> the biggest problem is the free speech framing he continues to use to talk about what he wants to do with the product.
it just reveals a very naive and unserious approach to the content moderation issues he will face. i say it is unserious because his own standard of just allowing for anything that is not disallowed by law is self-defeating because he has talked about wanting to remove anonymous content. he has talked about wanting to remove bots. both of those things are examples of -- there is no first amendment carveout for an amenity -- anonymity. it just shows that he has not put the dots together on what needs to happen in the space. >> we had a very lively debate with tim o'brien, our bloomberg opinion columnist. i want you to take a quick listen to that exchange. >> i think elon has already promised he will crackdown on bots and he has expertise at his disposal that he can deploy to
solve that problem. >> isn't anonymous speech free-speech? >> not if it is hate speech. when you put bots on twitter and pretend to be -- pretend to be someone you're not, when you violate the authenticity requirement, you are participating in fraud. that is fair game under any kind of free-speech policy to take down those kinds of bots. i fully expect that elon will be more effective at that than the current management of twitter because they have been unable to do that. cries what is your reaction to that? >> that is a standard in no way supported by free-speech legislation. that is not supported by a constitutional standard of what free-speech is. it is just a notion that he is exposing that anonymous speech does not get free-speech protection. he is just reporting that to be true. what other things what he look to remove? are we going to remove -- will
be allowed back on the platform people who arrest the parents of the murdered children of sandy hook? this is not just a series standard that has been articulated. david has not thought through all of the things that could have been come through. -- >> what are your biggest fears about elon musk taking over twitter? >> the type of content that twitter has cleaned up in the past six years, seven years includes things that were in response to real-world occurrences. you go back to 2015 and look at the content of that was being used by ultra-extremists, including isis to recruit people off of twitter. there was beheading vehicles and -- videos.
will we allow that back on? those acts might be illegal but the content about is not illegal. there is no first amendment rule that says you cannot use speech in that way. there is no case law that would support elon's contention that that content has to be removed because of legal reasons. i just don't think that standard holds water when you look at the type of things he is going to want to still not be on the platform. >> jack dorsey and i know you work closely with jack. he thanked elon for getting twitter out of an impossible situation to which you responded with a meme of a guy in a hot dog suit saying it was an impossible situation says founder and control of company for the last decade. what are you trying to say? >> jack has either been the executive chairman with control of the company or the ceo since october of 2010. he had the most direct role in shaping the course of the
company for the past 12 years. when he wrote his resignation letter in november of last year he said i worked hard to ensure the company can break away from its founding and its founders. to now say -- be only less than five months from that and say solving for the problem of it being a company, elon is the singular solution i trust, what happened in the last five months ? it had been established that it was able to break away the founding and its founders and now elon musk -- someone who has never been involved except for being a jewel on the pie form is the singular solution to the trajectory of the company? that seems curious. >> do you blame jack for anything here? is there something you think you should be answering to? >> the biggest thing concretely today is that elon is using the platform to troll the employees of the company that jack has led for the past 12 years and that
is other people in the trust and safety organization and you can critique decisions, content moderation decisions that have been made by the company but you should not allow the perspective -- prospective owner of the company to troll your employees for the decisions they made. that is what is going on here and puts a lie to the free speech argument. elon is not interested in debating what content should be allowed or not, he is happily turning his army of fans on these employees and allowing them to be targets of racist abuse and threats. that is not the marketplace of ideas, that is just using the product as an active troll to harass and target employees and jack and the board should absolutely have the backs of their employees in that case. that is just a concrete example of something happening right now. >> twitter was often overshadowed by this game of thrones drama. i think you would agree with that. i wonder if you think -- there
has been speculation that jack perhaps had something to do with this. before elon musk started buying shares. correct the problem with most conspiracies is that they are too clever for anyone to keep secret. in the case of anyone else on the board working with elon to originate this -- this deal, that would trip a number of legal redlines that i don't think people would be comfortable doing. i do think it is possible/likely that he was supportive of elon coming in and owning the company. probably because he felt like he was no longer going to be involved so this was another way out. i would just point out that direct distinction and contradiction to what he said five months ago when he said the company was in great hands and he had no concerns about stepping away.
cries what have you heard from current twitter employees? what is it like working there? because i don't want to speak for current employees but for former employees and those of us who were there from the early times, it is just depressing. it is sad to see this thing that was built be looked after by someone who has not really thought through the issues, has not taken care of -- taken care to do the research on what product they need to build. in addition to the free-speech question, he is not really articulating a coherent product vision. it is a disappointing and point to this part of the twitter journey. >> we will see if that comes with time. jason goldman, part of the founding team at twitter, thank you for bringing your voice to this conversation. we appreciate it. coming up, robinhood cutting
>> robinhood is in need of his own robinhood style rescue less than a year after going public. they have cracked up within two billing dollars of losses and now it is dismissing 9% of its workforce. 3800 people work there now. after the growth of this, it ended up hiring too many people, leading to applicant roles and wear layers and complexity than optimal. specs -- spacex has launched for astronauts including the first black woman to live and work in
what they are giving back to them. >> one of the most interesting things i learned is that everyone sees a world where you're going to get your genetic information. the reality is most positions are not trained. it is not accessible. we learned we have over 12 million customers. we learned our customers are getting this information. there is this opportunity to see that problem and it became the consult to other specialist by really providing and delivering genomic medicine and how our customers and how everyone else out there can learn about their dna and say i am going to take proactive promo -- proactive preventative steps and how it will change the guidelines and
whether or not that will influence how they are wearing sunglasses or eating or exercising. client has significant will telehealth be to 23 and me's future business? >> i think that preventative care is absolutely something that people do every day. you have to continuously implement it. what i find is about additional content. the next step for us is saying there are additional services that are a part of that. is that going to be telemedicine? will it be access to the pharmacy integration including the genetic data? will there be access to blood
tests that are relevant because of your genetic information? i think this infrastructure is a core part of the future experience with the customers have the 23 and be part of their entire lifetime of health care. >> you have released some eye-opening research about covid-19. if you had type o blood, you were less likely to test positive. are you still looking into covid-19? will we see 23 and me make more discoveries? >> we are. it is something i am pushing more. there are large numbers of people that have long covered.
>> what is the likelihood that 23 and me will help us get closer to a cure for cancer? >> people don't realize that drug discovery is credibly hard. most programs fail. there is a 90% failure in drug discovery. if you have a human genic foundation to your drug discovery program, you're more than twice as likely to be successful at actually getting onto the markets. what is so unusual about 23 and me is we have this incredible community of data information where we can make all kinds of
discoveries on all kinds of different diseased areas. they sort of whittle it down to where we are most likely to be successful, where there is a net need and where we are working on that partnership with jfk. >> what is a fair comparison? >> i love this. it is one of the biggest challenges. we are not telemedicine. we are not just diagnostics. we have this comprehensive holistic system where we say 23 and me is about engaging individuals and their health. individuals always have the opportunity to opt into research. with that, we are making discoveries. this is the ability to engage
customers. we will benefit that way. quest between three and me went public. what is the transition from being a private company to be a public company? we see tech stocks in general and equities in general with this macro environment. what is your reaction to that and your experience dealing with public market investors? >> i'm really happy we went through the process. we have the ability to do more acquisitions. the ability to access markets. we are focusing on the long-term vision of the company.
it is almost one of those things that every health care professional talks about. it is inevitable and obvious. genetics will become a critical part of health care in the future. i have not been focused on the day-to-day. the markets are obviously quiet dynamic. but i am focused on is where everything a person is going to have genetics as a critical part of their care. correct there is a new crypto change in town. this is bloomberg. ♪
it is time to dive a little deeper into how they are changing among the asset class. there are a lot of projects to look into. >> stay with us, we will move into the labs here. this is led by greylock. this is the crypto conference in the bahamas. what is the mood and seen in the bahamas and the crypto community? correct there is a lot of innovation happening. what has been interesting is seeing the confluence of crypto entrepreneurs, traditional finance.
>> how do you see this company challenging incumbent as big as coinbase? these are the decentralized exchanges. that is the most trusted protocol for the tokenized value. >> at the same time, it is essential to the emergence of this ecosystem. >> big exchanges are struggling with this. how do they think about the emerging regulation ahead?
>> i can't speak to all of them. my personal opinion is that we are going to get to a point where these rails that support innovation and more liquid 24 hour a day exchanges for lower costs and more accessibility, they will be combined with appropriate consumer contact -- is, protections and what i love to see is the u.s. federal government take a stance as we have historically. take a leadership stance around financial innovation. this is something that made the economy a major player in the past with the rise of electronic trading. >> what about self motivating a little bit? while defy has its promise, there is a lot of worry about things that could go wrong.
if you are a consumer thinking about defy, how do you look for the right places to go? >> you are absolutely right. there are two sides of this coin. you have regulations and then platforms that could design products or even decentralized products that are safer. there is a huge component of consumer education around this new realm of finance. >> they had a very spirited take on what is driving crypto investments right now. he said it is foam up. i am curious what your take is on that. is the fear of missing out what is driving all this competition? >> i think that we like to believe --
a greylock, we are trying to make responsible decisions independently about the most important technology platforms of the future. i believe that many of the competitors are smart people. we pay attention to what we are doing but we would never invest because nobody else thought it was a good idea. >> it seems like the metaverse is the next buzz word. it could be the next driver of follow-up. i am curious given greylock's early investments in facebook how you are thinking about that and especially the crossover of the metaverse into the world of crypto and all of these big themes we are talking about here. >> we probably think about it from a slightly broader perspective. we made investments recently. this is around this idea that digital assets will become much
more important and part of people's lives. we also made an investment in this company that is one of the leading metaverse project. in both of these cases, we are really focused on understanding what the user demand is, community creation or a virtual place for social interaction, we are really oriented around that. we think there will be more and more digital interpersonal interaction. >> you were at goldman sachs before greylock. you know how this works. what will happen in terms of the convergence of traditional finance? correct there will be some states when the two combine. >> i think this is going to be a massive boon to the ecosystem as more and more traditional finance players move into the crypto ecosystem. i think the greatest promise of crypto is accessible, trust us
markets that are more efficient. the big institutional players, be they hedge funds or market makers, they provide liquidity and efficiency in markets. they help them operate better. i think that a lot of this has increasing regulatory clarity. i am encouraged that you see them making moves so that we feel more comfortable about the risk. they would make the ecosystem more liquid and more put -- more liquid and more mature. >> you are in the bahamas. what is your biggest take away? chris we are at a point where the maturity and the ecosystem where the most important thing is figuring out how to enable institutions and the next wave of consumers to enter the
ecosystem and use the rails of crypto in ways that are safe and legal. i am encouraged that there are -- there is so much discussion there. >> thank you both. coming up, more on meda earnings results. did the social media giant just turn things around? it will not be so easy. more on that next, this is bloomberg. ♪
i think it will be longer for reality labs then for a lot of the traditional software we built. >> mark zuckerberg here -- and i want to get to met as with the company at a more users. i want to see if the company is really turning itself around for the long term. last quarter, the first use here, they grow, what is your take away? >> it is a good sign, especially given what happened last quarter but the reality is there are some really real challenges ahead for meta-. there is the changes in ios and combine that with brent safety concerns, all of the surrounding the war in ukraine as well as concerns in general and the rise of tiktok, it is creating the perfect storm. >> in terms of the user growth,
is this a blip? >> what is clear is that there was a huge focus right now for meta-on video. social activity is really shifting toward video. that is being accelerated by tiktok. they are trying to find ways to be able to use video to try to draw an engagement and users. grexit is something that we have over time. it is something that has been on instagram and facebook. a lot of it has to do with a different user base.
it still tends to be younger than facebook. that is one reason why video seems to be a little bit more successful there. >> let's talk about what you think this signifies about long-term ad revenue growth. obviously we see facebook struggling. we saw snap struggle and youtube revenue came in yesterday. ad revenue came in light. what is your take away as to how that will involve throughout the rest of the year given there is no time and the macro environment is changing. there is a war in ukraine, we are still facing inflation. >> there will always be different types of macro headwinds. as a one of the biggest things a lot of these companies focus on an innovation, tiktok really entered the scene and has taken it by storm. bringing in users and ad revenue. the biggest threat to long-term growth for any of these social platforms whether it is
facebook, instagram and snapshot is the decline or slowdown in user growth. by focusing on ways they can bring in new users and continue to keep that engagement on these platforms, the way they will be able to continue attracting advertisers there. advertisers will go where there consumers or customers are. >> what are you watching for when it comes to meta-this quarter? >> i will be watching to see a couple of things. one is to see how it will develop. this is a huge point in zuckerberg was making at the beginning of the earnings call. there is a lot of focus on the metaverse right now but it is an incredibly buzzy term. i truly believe the immediate competition for social media is in video. whoever was able to rise to the top and video is going to be the leader in the space. >> all right, insider intelligence, thank you so much for joining us.
>> some of the biggest stars on twitch my start to see some revenue cuts. the livestreaming website is top talent by offering incentives for streamers to run more ads or reduce subscription fees doled out to the biggest stars. this move is intended to boost profit and it could alienate some of the biggest names. that is the risk. that does it for this edition of bloomberg technology. they will be joining me and talking about their earnings report, why strong. we are also watching results from apple, twitter and amazon. big day. don't forget to check out our podcast. you can find it anywhere you get your podcast. i am emily chang in san francisco. this is bloomberg. ♪
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