tv Bloomberg Technology Bloomberg May 11, 2022 11:00pm-12:00am EDT
announcer: from the heart of where innovation, money, and power collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang. ♪ emily: i am emily chang in san francisco. this is "bloomberg technology." coming up in the next hour, whoever said streaming is slowing down did not tell disney, the company reporting a major increase in subscribers for disney plus. this, after the shocking drop for netflix. we will look at where the business goes from here. plus, how low can crypto go? the massive selloff is spilling over to cryptocurrencies. bitcoin and ether have fallen
more than 50% since last year. and, google gives us a sneak peek at ar glasses. what can they do and when can you get their hands on them, and how did they not repeat the failures of google glass? a top google exec will join us. we will get to all of that in a moment. but first, stop sliding, signs that inflation signs not going away soon, and the nasdaq closing down 3%. bloomberg's emily has the latest. emily: it was another volley day for the u.s. equity market, s&p 500 down 1.6%, but the pain was really concentrated in the tech stocks. we saw the nasdaq 100 fall over 3%, big giants like tesla and apple falling along with the index. this came after some cpi data that showed investors that inflation is higher than expected and probably going to prompt the federal reserve to continue on that aggressive
monetary tightening path. that does not really bode well for high growth stocks. yields for the 10 year were lower on the day, but did not provide support for u.s. stocks. u.s. dollar in new york largely flat, but approaching its highest level since may 2020. we talked about pain in tech stocks, but the pain is worse when you look at the crypto markets. bitcoin falling below that key $30,000 level. in this, of course, was near an 11 month low. we are also seeing ethereum down 43% year-to-date. the risk off mood and markets have been weighing on cryptos, pretty much all year, but the pain is being felt because of the plunge in terra usd, and algorithmic stable coin, but it lost its dollar peg earlier this week and plunged 80% today, paring back some of those losses, but worrying investors. we also saw luna, a crypto token that is linked and helps
maintain the terra usd peg fall. there was an exchange traded product tracks it. it felt 90% today. i heard from bloomberg intelligence that that is one of the worst single date exchange traded product declines in etp history ever. so, a lot of losses there. let's get to disney, though. they reported earnings. missed on revenue and eps, but didn't beat on disney plus subscribers, reporting more disney plus subscribers than expected. quite a change from its streaming competitor, netflix, whose stock plunged after reporting earnings. disney down post market. year-to-date, disney down over 30%. so we will see how analysts are taking this earnings report, which was largely positive. emily: emily, thank you. i want to stick with disney and talk about those results with the president and ceo of -- a
long time disney shareholder. subscribers light, but you have to look at the massive increase, and feel some sense of relief, even surprise, i don't know. is this what you were expecting? ross: we did not have much expectations as far as subscribers, because it is so hard to predict what consumers do based on what content is being released on each streamer, but what we now see at the end of this earnings. is that netflix did lose subscribers to the competitors, disney plus, peacock, and certainly, we don't know if that is a permanent change in behavior, because we think streamers go back and forth between what is popular at the time, so disney had good results for their streaming businesses, and much better than we expected, because obviously we thought they had a tough comparison to the covid era, and
, you know, quite frankly, all of their businesses are starting to improve and we are starting to see revenue dramatically increase in parks and resorts , and actually a wonderful weekend at the theaters this weekend, so with the valuation s so cheap now in the stock market, stocks like disney are quite compelling for long-term investors. emily: i thought what bob chapek had to say about disney plus subscribers, but don't have children was really interesting. take a listen to what he had to say. bob: it is certainly popular with families. but as a reminder, almost half of disney plus subscribers are adults without kids. emily: and he said he would try to cater more to that audience. what do you make of that strategy? ross: well, i think his point is trying to broaden the market. disney plus is just a no-brainer if you have kids, so what would be your impetus to getting what is perceived as a kids channel?
but when you're talking about adults, you're talking about gen xers who have grown up with star wars. so what he is really saying is there is an enormous audience base of kids wh do not have kids -- or did not have kids who are really into the intellectual property like star wars and marvel movies and you think, oh, these are kids movies, but they are not. they are adult movies with adult content and that is why they have been successful, because there is stuff for different age groups on disney plus. emily: how do you think disney plus holds up if netflix releases a lower-priced, ad-supported tier? ross: i, i don't see it as an issue. look at it this way. you have three main streamers now with hulu, disney plus, netflix and what will be hbo discover or whatever that is. those will be the three main players. then you have amazon and apple are the players who do not charge for streaming services and try to sell other products, and so when you look at the
environment that is out there today, i think disney is extremely well-positioned in the multiple content offerings, also with espn plus, the agreement with ufc, and their numbers would have been blowout numbers if it were not for the $1 billion they had to pay producers and other people to put stuff on the streamers instead of in the theaters over the last year or two, so disney took a big hit investing in the streamers, but that will pay off big time long-term. emily: meantime, he is talking about rolling out into 53 new markets. obviously, we have talked a lot about netflix's global appeal , a lot of new content coming in from, for example, south korea, in the success of squid games. you thinks disney can repeat that? ross: no, and i do not think it would benefit them to do that. disney has a different approach to content.
if i make a pixar movie, that will play in all countries in the world. you just change the language. but the content works globally. where netflix does not make kids content, really, so it does not work globally. so, i have recently watched a lot of the asian-based shows they have been making, korean dramas, japanese crime movies, you know, i watched some of the stuff on netflix, and netflix has a far deeper approach to the local cultures and artistic sensibilities than i think the approach disney has. i think netflix ultimate will be more successful internationally. i think what disney is really focusing on is you have hot star in india, where it is a massive market and they are focused on that market and it makes a lot of sense for them to focus on bigger markets where they can put money into content and not have to spread it between so many regions.
emily: so let's talk about parks. let's talk about parks, because chapek saying domestic parks are firing on all cylinders. $300 million potentially because of the closure of parks in hong kong and shanghai due to the pandemic, and as we know, shanghai is on a very restrictive lockdown to this day. how concerned are you about that? ross: i mean, for me, this is probably the biggest concern i have as an investor right now. you know, i not worried about am the fed actually, because it easy for them to stop causing pain, but china has, we have a lot of business we do in china, whether it is apple, tesla, disney, and many others, and in shanghai, and this has been hugely detrimental to the economy in china, the people in china, and it may or may not work, unless believing that it
will work, so this is a big issue for disney on the short-term, and maybe even the medium and long-term in a country like china, so i do not expect it to be easy to do business in china for the foreseeable future because of the goal of no covid and the fact that theme parks are sort of the exact opposite of what the chinese government once people doing right now, but i do think that is more of a short-term issue than a long-term issue, but one that will weigh on disney. emily: i wonder if you think doing business in florida is a short or long-term issue. you have been pretty clear you are not a huge fan of bob chapek . you don't think he handled the situation in florida well. disney is losing these special privileges they have enjoyed in florida for decades, as a result of this very controversial don't say gay bill, and it is clear that lawmakers in florida are taking this out on disney. what is your take on bob chapek
now? now that you see these numbers? are you having a change of heart or you are still not a fan? ross: well, he just fired the pr guy for what is going on in florida. there are a lot of things i do not think he is handling the way i wish. the florida situation is a tough one, but i think that disney wins in the end, because whether you are on the right wing or left wing, your kids want to go to disneyland and there are a lot of people who type stuff on twitter and facebook, but then they go to disneyland. so, i don't think that is an issue, but the higher cost, higher taxes, disney's relationship benefits florida, so what i think is this will smooth out over time and these political wars over the right and the left are more laid out -- played out in the media then in the actual behavior of people. emily: ok, we are continuing to
get headlines from the call. disney saying they expect disney plus to grow even more in the second half of the year, though maybe not as much as we have seen it grow in the first half of the year, so that is the number to watch, that big subscriber number. ross, always love having you on the show. thank you. coming up the route is not over for tech stocks, the nasdaq falling to the lowest level since november 2020. we will talk about how persistent inflation is weighing on growth. this is bloomberg. ♪
going on, but for us, it is focusing on our long-term strategy. >> so as mortgage rates have gone up, and they have further to go, clearly home buyers will have to trade down despite lower price points, but most of the data around housing predict s strong housing appreciation. >> i think people are overreacting to some of the inflation worries, some of the other trouble -- travel players. >> we have been studying inflation carefully for the past six quarters. i think the growth of inflation occurred more sharply than some anticipated. it certainly continues to be a real concern. emily: some top tech executives. we had them right here on "bloomberg technology" reacting to concerns about rising inflation, the friday point report painting a troubling bigger picture protect, especially as the fed tries to combat rising prices, all adding to the decline in tech stocks in particular.
for more, i am joined by steve, thank you for joining us. what do you think the impact of inflation has so far been on tech? steve: when we went and looked back at the 1970's, the best sector was consumer-products and the worst was information-technology. i think that is a testament to how mission-critical a lot of the software and computers were back then for businesses. it is more mission-critical today. so we expect tech to perform better. where it will show up is in the form of pain or equity prices declining are those software programs that businesses use on an ancillary basis, or not core to the business. we do expect inflation to affect technology dramatically. in growth stocks, we have seen it as we are down 70% across the board, and we are seeing it in private markets as well. emily: what you expect the impacts will be, massive down rounds, inability to fund raise, more layoffs?
steve: yeah, ok, so you hit on all the key factors. we saw this before in the dopt com -- dot-com bust, there is a strong bias in the markets for the last 12 years and even through the great financial crisis, growth stocks never went down, so it will take time for prices to adjust. we are seeing the early cracks, some of which come in the form of less competition. we are seeing converts, and what they do is maintain an equity price, but allows the company to extend its runway. what follows converts are down rounds. the other thing that is coming and we saw this today with carvana, layoffs. we think technology that the layoffs will be shocking. they will be shocking, emily. we have seen meta freeze hiring , same with uber, and this will just the beginning. emily: you are comparing it to
the dot-com bust. how close? could it take 12 years to play out? steve: so, it is unclear how long it will take. our current view over the next 12 months it is going to be very rocky. the back half of the next year, things should firm up in the tech sector. the dot-com bust was unique to that time period. more liquidity, company business model stronger, better understanding of how to get the company to profitability, at the management team level, at the board level, and those discussions are happening right now. i suspect the downturn will be a little bit more violent, but the recovery will be faster. the next 12 to 24 months will see some really interesting opportunities, but we have to flush through these down rounds. companies with six to 12 months of capital left will really struggle to raise money in this environment. emily: so who makes it out of the gauntlet and who does not? steve: so, those with fortified balance sheets, those who
got ahead by trimming staff when necessary. it is unfortunate to do layoffs, but it is part of what needs to happen during a downturn. and where you will see the most pain in the larger businesses, the unicorns. the smaller companies that can adapt and extend the runway for three or four years should be ok. those that have less than two years will struggle. more broadly, what will work, commerce, commerce infrastructure, anything to do with e-commerce, fintech, although we are seeing competition increase with a bloodbath in the public and private markets, and transportation, logistics, and security. emily: wow. giving it to us straight. steve, we will be watching. well, it was billed as the biggest change to airbnb in a decade. >> we have the biggest updates to our product in 10 years. we have been thinking about this for a long time. i can't say a lot, but number one, there will be a new way to
search on airbnb, a new way to find really interesting homes, and the second thing is we will have a big step change to our service level and the customer service we offer. emily: airbnb has now revealed its big update and which includes a new way to search for homes, trips between a couple of homes, and perhaps the biggest upgrade, more protections while traveling. they are calling it air cover, which includes a number of guarantees and the get-what-you-booked promise. we would talk about that and more with the ceo and cofounder brian chesky tomorrow. and, coming up. >> we need a name. >> we? >> we live. >> we dream. >> wework. emily: what did not work and what lessons can be learned from it? we will talk about all that and more. this is bloomberg. ♪
emily: from wall street to silicon valley, companies are competing fiercely forward talent. in response, employees -- they are changing in person requirements, even going fully remote. i want to talk about this with the chief learning officer at one company, and one person with the new book, re-culturing. melissa, the pandemic has totally reshaped the work place for better or worse. how should companies re-culture in this environment? melissa: yeah, the biggest question i always get right now
is how do we bring our culture back. that is the wrong question. because it assumes that culture is the office, and while a lot of us enjoy the ping-pong tables, doughnuts, and free food, that is not what culture is. culture is how work happens between people, so the focus needs to be more on the values, the behaviors, and how we are showing up with different ways of communicating, versus how we can get people back into the office. emily: let's talk about what companies are doing wrong. i mean, you have companies changing their work from home policies, trying to create these new perks for when people are in the office. melissa: yeah, i mean, i think that it comes down to going a little deeper than just defining your values.
i think companies stop when they have a list of values on the wall or they threw up on a website. the companies that are thinking through this, and we are doing this here, they are trying to codify culture. what would a value for instance , teamwork. is that collaborating with each other? is it that constructive debate? and how do we do that in a way that is in a hybrid environment? what are the opportunities to come back to an office that is more of a brainstorming opportunity versus when can we do it remotely? so, i think it is less about getting people back into the office, or, you know, how do we make sure that we are continuing -- emily: ok. melissa: -- to figure out
ways to provide food, it is more about how to connect. emily: so quickly, what are some parallels you can draw from your experience and what we are seeing now in tech, market turmoil, companies getting punished, whether you are growing or not. melissa: uh-hm, i, you know, i think of organizations again, as a total system. i think that we work and other companies get this wrong. we think of it as a separate hr initiative, versus how to look at how to reconnect it to your purpose, to your strategy, and closing those gaps, so if your mission is to make a life, not a living, and you invest, there is something there. yeah. emily: we can check out your new book out now. coming up, google high-tech glasses. we will have all the announcements and when you can get your hands on these new glasses. this is bloomberg. ♪
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emily: welcome back to "bloomberg technology." i am emily in san francisco. breaking news. headlines involving twitter. the dow jones reporting investigators investigating elon musk's disclosure of his sizable stake in twitter, probing his late submission of a form investors must file when they buy more than 5% of company shares. he started amassing shares in january, but did not feel stake -- did not reveal his stake until april. we will get more on that later. meanwhile, google with upgrades to its search and maps services,
augmented reality ambitions, like a new phone and a google pixel watch, and even a pair of new ar glasses. alphabets senior vice president for devices and services joins us for more on all this. lots to get through here. let's talk about the phone first, the six and 6a. talk to us about the strategy and the need for high end of lower end devices. rick: you bet. thank you for having me, emily. first up, i want to mention our vision for computing is a vision of ambient computing where they computer should help you with whatever you need and be all around you. the center of that universe are really phones today. that is why we are investing so much in this area. google tensor is our technology substrate on a chip that powers all of them.
and today, we introduced the pixel six a, a $449 version of the phone that includes our premium tensor technology. it can do great things for users like speech recognition and photography. that is pretty key. later in the year in the phone arena, we will launch the pixel seven, so we talked about that. emily: so, let's talk about the google pixel watch. how do you think it stacks up to apple watch? how many can you sell? rick: first, it will be a terrific offering. i have got it right here. round. beautiful device. circular design with stainless steel and beautiful features. some of the key things for anyone who uses the pixel phone or family of devices, this will be the watch for them.
it deeply integrates with google's ecosystem of products. you can get turn by turn directions without your phone and use google wallet to pay for anything. the google home app will be available. and of course the best part is it deeply integrates with fitbit. i have been a fitbit user for 10 years, so everything that been -- i have been doing here for 10 years seamlessly synchs, tracking, so it is really exciting. i think people will love this product. emily: any chance you have a pair of those new ar glasses in your pocket too. rick: i do not have them with me. it is a prototype. we have been involved in the ar space a very long time. we are excited about the advances we have made. we see this area as a key part of the ambient computing vision, and you can see how wonderful it would be to have something on your face that enables you to do real-time communication, live
caption the world around you, powered by ar systems and tensor . we are excited to show a little bit of the future. we are a bit of a ways off -- this is a prototype, but we continue to invest in the ar space, and we see it as a key part of where we are headed with ambient computing in the future. emily: so tell us more about how the glasses work. is it like google translate on a pair of glasses or something more? how does it work? rick: it will end up being a lot more. it is early days. we don't have a ton of product details to share today. we were showing one facet of how it might work with powerful speech recognition and communication. we have a lot of the same capabilities on our phones, lens, google maps, things like that. you will see continued investment in the ar space. we believe strongly in offering
users help in the real world, and that's what we're focused on with these efforts. emily: glasses are in the research stage now with a limited number of users testing it? how far along are you with the prototype? rick: we have a number of engineers and developers continuing to build product in this space for internal use. we are still in the research phase, so it is someways off, but we are excited about where it is headed. emily: there must be a lot going on with the processing on the backend to make it work. rick: yes, ar is one of the more sophisticated computing capabilities. we have prowess in our computer capabilities and in the data center. what has been is that we are adding a lot of intelligence to endpoints, and you can see that with google tensor. we are able to leverage both of
these capabilities together to be able to really offer the powerful experience in the future. emily: so the big question is when, when will these be available for consumers, or how many years out are we talking? rick: more to come. but it is not imminent. we are definitely in the prototyping stage. we will make sure to tell you, emily, was they are about to be out. emily: last question on the glasses, but look, google glass was not what you hoped it would be, became the but of jokes. how do avoid that with another set of glasses? rick: we learned so much with google glass. we clearly learned how hard it is to develop this technology and learned a lot about what users care about and what is important, so that informs us and gives us a great background to understand what we need to do in the space, so we are glad we
had that initial effort. it has really helped us to think through where we need to be for the future, so we are excited about it. we are using all our learning from the prior entry into the space, and i think he was he a lot of the the benefit of that in the future. emily: you said you planned to release a tablet as a companion to pixel, and i believe you said in 2019, so why the change of heart? rick: i think, the android team has invested a lot in larger screen devices, larger form factors. i think in the last couple of years in the pandemic, it became clear how important having these large screen devices is for the home for various use cases. and so, between all of those collective things at once, we decided it was really important for us to develop one. it really does provide a new facet, new experience for pixel users, so we thought it was important to have it as part of the pixel portfolio. emily: how many facets will
there be? is this a foldable tablet? rick: oh, um, you know, we just showed up little bit of a prototype of what we are building now today, standard tablet. there will be a lot more detail share next year when it comes to market. emily: ok, bigger picture, how do you measure the google 's hardware division? comparatively when you look at the numbers of other companies, google is not quite there, but still growing and a place where you are investing. what is the bar for you? rick: well, clearly we want this to be a large business for the company, and it has been growing quite significantly. for instance, we talked about in earnings that pixel six has sold more in its first six months than pixel for an pixel five combined. so without a doubt, we are investing a lot in this area and growing a lot, and our intention is to continue to grow the business. we are no doubt a challenger and
a new entrant relative to others, so where starting with the small base, but we expect to grow and are investing in the future for that. that is why you see us making investments in the pixel sponsorship for the nba playoffs, which have been terrific to see and terrific games to watch. so yeah, this will be the space we definitely invest in and grow in the future. emily: so in the future, how big of a piece of pie do you see hardware being in the overall google -- rick: well, we will see. oakley it would become a we hope it will become a meaningful parted with hope to -- part, and we hope to contribute and be a part of google's success. emily: thank you. thank you for giving us a little peek into the future.
emily: time now for our crypto report. i want to get another look at coinbase shares, falling to new lows, even the word bankruptcy, the big b-word being floated. our crypto contributor has more. >> thank you so much, emily. when we talk about coinbase, you have shares and bonds plunging to new lows after results disappointed wall street. really, goldman sachs coming in and saying coinbase is unlikely to return to recent levels of profitability in the near term.
in a quarter report, they added a disclosure that if the company files for bankruptcy, the court might treat customer assets as a line for repayment, meaning the customer assets are what will be at play. also, i want to be very fair about this, brian armstrong, the ceo saying this is about a disclosure, about how they hold the crypto assets, and not about the chance of bankruptcy at a coinbase. while that is not a risk near term here, he is saying your funds are safe at coinbase. still, you have a huge drop-off in the shares in a huge question -- and a lot of questions about the exchange business moving forward. to answer some of those questions, i want to bring in steve ehrlich, ceo of voyager digital, a crypto trading platform. you are a longtime member of the crypto community. both stoxx and cryptocurrencies. when you look at the exchange model moving forward, a lot of concerns about profitability.
how do you make this work in a down market? steve: look, the exchange model is something that has become very profitable across traditional exchanges. so, we are in the early stages of adoption of crypto, especially in the u.s. we are working through thoughtful regulation, so my belief is that exchange model will become extra me profitable -- extremely profitable over time, but we will have bumps in the road until we get there. and today is one of those bumps in the road, but i'm bullish on the exchange model in the industry in general. >> i want to talk about coinbase for a second, because the idea that there is a claim on assets here, if there were to be a. a lot of firms that have not gone public yet don't have similar disclosures, so what kind of risk does that entail, and what does that make the customer aware of at the end of the day? stephen: it is interesting because they said in prior
quarters they did not disclose the level of customer assets they were holding. they changed disclosures and said hey, if you are holding customer assets, you have to put it on the assets and liability side of the balance sheets. so that disclosure is there and we see how many assets they really do have, but to your point, a public company like coinbase and voyager have been disclosing that since day one and have been public three years now. i think that is actually a good thing for consumers, because now they see that our assets cover all the liabilities and we are nowhere near a bankruptcy situation in either case, and you now have more clarity than if you were investing in a private company and holding your assets in a private company with no required disclosures. >> so, what about the model itself in terms of making money? there are questions about their are a lot of questions around whether things will start to go to zero, like you saw in in the stock market as spreads started to come in. stephen: i think that, you know there is a place in this business for commissions. consumers are getting a great
price, great action on all the -- there trades, but i do think that this is where the market changes and is different for crypto versus the traditional markets. the traditional markets have a national best bidder offer, or you have price protection on every trade. in the crypto market, you don't, and that is why we are looking for thoughtful regulation, but as long as there are exchanges holding and trading cryptos, there are opportunities for commissions and spreads for everybody in the industry. >> let's talk about price protection. it is trading at $.70 on the dollar. you made a decision not to, but why? stephen: when we looked at the underlying of ust, we saw it was truly not a stable coin. the u.s. dollar stable coin is backed by u.s. dollars in u.s.
-- and u.s. treasuries, and it has an attestation from a prominent accounting firm. we felt very comfortable, and still do, that there will always be a dollar for dollar there. when we looked at ust, we did not see the same assets behind it, and so we were uncomfortable bringing that to our customers. but we did list luna in terms of price action so that they could participate, and trade it, but not take it off the platform, because one main reason was to stake it and earn those rewards. we did not feel comfortable. we think about the customer first. we chose not to list it. we chose to list luna. >> will more exchanges be more discerning moving forward about the types of assets they list? especially when it comes to defi ? stephen: everybody will take a different look at how they list their coins. we go through a really detailed process, and i think everybody
is starting and will expand their processes for that as well. i do think we saw flight out of defi today, consumers bringing assets back to a centralized place like us, so they can be comfortable holding the assets. in the defi world, you're putting your assets into some contract and will get some reward on it, and now, we are seeing those rewards may not be as good as they look, and to do the other party to do the diligence for you, we saw massive inflows and trading volume today. emily: so what is the ultimate ramification for defi this year given that it is not just ust falling, you see bitcoin falling below $30,000. stephen: look, i think that this is an opportunity for a reset opportunity. ust did have an impact on the entire market today, because it was backed by bitcoin, and there was a lot of selling of bitcoin related to the ust, so i think
you are seeing a reset time. we are close to the bottom, if not there already, and we will see that rebound, but it is an opportunity for people to learn more. and that is the key thing here, individuals, consumers, brokers like us need to educate people, educate consumers why these cryptocurrencies matter, and therefore they can make an educated decision on which ones to own. emily: thank you so much. the ceo of voyager digital. emily. back to you. emily: thank you. nike is escalating its legal battle with stockx, saying that it purchased four pairs of counterfeit shoes despite being advertising that they were authentic. this after they accuse of stocxs riding on nike's trademark. it is listings for physical sneakers stored in its vault and can be traded by users. coming up, disney earnings. what bob chapek had to say about pricing power for disney plus. and, rivian results in and -- results and production goals. that is all next. this is bloomberg.
bob: we believe we can move up and cascade up our net price over time given the tremendous value we started with in the -- and the increasing price-value relationship for all new content, but we are pretty bullish about that. emily: bob chapek speaking about pricing power and future pricing power for disney plus. disney saw big growth for -- in subscribers, beating estimates, finishing the quarter with 137 million subscribers globally, up 30% from a year ago. disney not the only one reporting results.
ev maker rivian out with earnings. ed ludlow has been listening on the call. so shares of modestly. what are the headline takeaways? ed: it is still hard for rivian, but it was as good as it could be. they still plan to build 25,000 ev's this year, split across the consumer product in the van. semiconductors are still hard. supply is still hard. the good news for investors is they got a lot of trucks built sitting in a parking lot waiting to be delivered. they are finding out the hard way it is not easy to be real -- not easy being a real company. emily: what about the supply chains and what is going on with china? are they feeling the brunt of that? ed: they are disappointed. they built 5000 people since production started. around 2500 in the quarter. but at times they had to pause the line. you saw the video. you were in the factory. all these great robotic arms stopped because they don't have enough points. semiconductors are still an issue, but they say they are
speaking to suppliers and we have seen the worst of it and have hit the bottom. we will get better from here. there were some reports from the wall street journey about battery cells supplies. if you look over a five-year horizon, supplies or find, but -- supplies are fine, but is longer-term wind the whole world is clamoring for electric cars that is the concern. emily: did they have anything to say about amazon? ed: a lot. the 25,000 figure includes 5000 amazon vans. they are building two sizes. the big is on the way. small is under development. they are on track and starting to roll up more in cities around the country. emily: the analyst from morgan stanley grilled them. did he get somewhere? ed: he kind of got somewhere. if you look at the equity story, rivian has fallen to around $20 per share. investors have lost patience with companies that just burn
through cash. they want to know, how are you going to do better? how are you going to limit costs, spread out spending smartly? you could see the stock reaction is modest, but up. given the tough time, that is positive. emily: well, certainly it matters with inflation and rates going up. ed: and labor and supply chain snarls and everything. emily: just about everything. ok. ed ludlow. thank you for that update. i appreciate it. that does it for this edition of "bloomberg technology." back tomorrow. airbnb will be back to talk about the new redesigned changes to search. we have the ceo of arm and the ceo of sonos. big show tomorrow. don't forget to check out our podcast. i am emily chang in san francisco. this is bloomberg. ♪
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