everyone is focused on zillow. zillow offers the algorithm, fueling house buying technology, which apparently unraveled because of an overestimation. let's bring in patrick clark, who wrote a great story about what went wrong over at zillow. let's start off with the algorithm. a lot of people are talking about the. anyone who has done these zestimates, there was always a joke that it was inflated. if you look up your house, it's like, there's no way anyone is buying my house for that. at some point, the algorithm was accurate, or at least accurate enough to build a business around. >> at the very least, they had expertise in understanding what home values were and what home presses -- prices should be that would allow them to get into this business. in the fallout from the decision to pull the plug on it, one of the things that has emerged is they say we are good at knowing what house is worth right now at a static point in time, but we obviously struggled to figure out what the house would be worth six-month from

zillow struggled to do that. emily: this twitter and tiktok protest, folk saying don't buy zillow homes why is everyone so up in arms about this? >> it has been a really tough year and a half. particularly if you are a first-time homebuyer looking for an entry level priced home in phoenix or dallas or vegas. nashville, the types of cities that are seeing a lot of in migration. if you are in that housing market, the appearance of zillow and competitors, plus the large single-family rental companies, imitation homes, american homes for rent, a bunch of private equity players, you see these giant institutions with billions of dollars that can come in and make a cash offer for a house. you have to go through this more complicated process of getting a loan. if you are a low down payment borrower, you have got to get the home appraised. it is -- i think it is a widespread frustration with institutional presence in these hot housing markets. part of it may be the institutional presence is not well understood. was zillow

zillow is down 8%. >> slipping in the business that z zillow once predicted to be a $20 billion, they say it is the inability to predict future real estate >> we have a housing market that froze up and we are seeing a growth rate that we have never seen before in history as you might imagine, that has made predicting the price of a home six months into the future predictable. we are doing it in a scale that is one-tenth what it needs to be we stepped back, assessed, looked at the volatility in our earnings and we said, hey, we don't need to be doing this. >> just two weeks ago the company said its stock of purchases of homes pointing to supply of labor shortages. zillow said they had to list about 2/3 of the homes at prices less than they paid. they will let go of about 25% of its workforce. we are looking at zillow trading down as much as 52% from its year high. right now you are seeing shares move higher in after hours by as much as 6% >> thank you so much when i heard the ceo on closing bell earlier, he was talking scale is one thing, but inability to predict if zillow of all parti

let's get zillow earnings. closing the office business and the headline in this release revenue 1.7 billion. the forecast is 2 billion. eps a loss of 95 cents a share the forecast is a gain forecast for positive 113 million. the miss coming really in the homes business 1.2 billion of revenue includes a $500 million write down because of the shutdown of zillow office which of course and the write down of the existing homes inventory over the next two quarters to involve a reduction in the workforce of 25% over the next few quarters and some really interesting headlines in the initial release here rich barton will join us shortly to discuss this and said we determined the unpredictability far exceeds what we anticipated and continuing to scale zillow office is too much earnings and balance sheet volatility they have to sell down the inventory and does feel like it's got repercussions for the industry and the house prices hot since the pandemic lows and we are seeing the share decline of 6% following a decline. >>

so zillow was a, i was telling zillow that they should buy a house cuz the price is going up. so they bought the house and the price went up and then the a, i said, well the price just want to buy another house. yeah. so they're, they're smoking, their own belly button lint in this virtual circle of self reinforcing their idiocy . and al collapsed. exactly like subprime, just like long term capital management, just like a socket question. i've been a, some the bank rush of 1993 and it's all happening. a i g, the 2000 right bear stearns, lehman brothers. it's all hubris. it's all the same exact thing. over and over again, chuck prince citibank said, as long as the music plays, we're going to keep dancing. then the music stopped and it was a huge crash. the music all was stop. these are just, it is armed with computers to magnify their idiocy. right? and wealth richter said about this story, by the way, that it was wall street that was driving this from the very 1st day. the very 1st house. they tried to flip in this program on zillow. they lost money and wall street. however, i

>>> t-mobile down and zillow shares looking to offflow housing inventory. all that and how to be positioned after earnings after the bell next in "the exchange." that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing customers our best deals on every iphone, including up to $800 off the epic iphone 13 and iphone 13 pro. >>> welcome back to the earnings exchange everybody season in full swing and three key stocks reporting after the bell the action, story and trade on lyft, t-mobile and zillow today. start with lyft. expecting revenues around $860 million, loss of two cents key question, can they handle a persistent driver shortage without raising shares on riders share down 4% today an more than 30% off the 52-week high deirdre bosa joins us now. jobless benefits not seeing increase in driver supply helping with prices as they thought? >

i want to hit zillow. taking a massive hit today, 25%, after saying it was going to halt its house flipping business altogether. this comes, 7000 homes as you mentioned, but also looking for $570 million in write-downs. so a lot going on. it is taking with it some of its peers, redfin and opendoor, emily thank you for that roundup. what was once a hot housing project for zero has become a total nightmare. the real estate company is pulling the plug on its tech-powered home flipping operation, shares plummeting since the news. the company now trying to offload 7000 homes to institutional investors for 2.8 billion dollars. to walk us through this we are joined by bloomberg's partridge clark. you broke the story that zillow was causing its homebuying business. we have seen the stock plummeted. now this muse that they are offloading homes. what went wrong? patrick: still hard to say. a big part of what went wrong was that they bought homes for more than they could sell them for. simple as that. they leaned int

there have been no comments from zillow. if successful, zillow would make a significant dent in the losses they have taken on these homes. the company did acquire approximately 8000 homes in the third quarter. this is coming from real estate strategists. it's stock shared taking a big dip since hitting a high in february. zillow recently said it would stop making new offers for the rest of the year until it gets the backlog offloaded. a big misstep here for the company, which has done well in many of its main areas, which is real estate listing. haidi: how did they get it so wrong? >> according to one analyst, they decided to lean into the trend at the worst possible time. just as the market was trying -- starting to soften. this is a crowded trade for real estate entities to get in to the market and flip them. the high-tech approach zillow took was they had an algorithm and they treated so that was almost too successful. at one point, it got all the winning bids so they ended up with too many homes and it also overestimated

zillow is taking $569 million of writeoffs. rich barton said yesterday, the business was too risky, too volatile to our earnings and on perfect races and it had too low of an equity opportunity if somebody had warned him about this years ago oh, wait, i did so, repeatedly no wonder five different firms downgraded zillow from buy to hold what makes it so infuriatinfurih treated us like suckers. he was very apologetic on the show he was incredibly reassuring about the previous house flipping and yesterday he said fundamentally we have been unable to predict the future pricing of homes that makes this a safe business to be in and in august he said, i confess to being excited by how well zil lows is doing in such a hot sellers market then he added i'm comparatively more confident now than i was in a quarter ago. it feels good to me, end quote the nerve of this guy. he was feeling real confident and then yesterday he said the business had been more volatile than he ever expected possible we knew about the pandemic in august we knew

zillow has great brand awareness. there is a lot that can be done to monetize. >> i check on it at least twice a day myself >>> karen, walk me through your trade. >> you and i were speak early this morning i put my toe in and by midday my shin and by the end of the day knee high. i really like it i think it's fantastic if you had told me june 30 a stock that was 120 something, they are going to get rid of the business you hate, the asset heavy one, take a big charge to do it and you are going to be able to buy the good business at $60 a share, i would have said that never is going to happen. but here we are. i have shown i am impatient, can't do the three-day rule. i did it with ulta it worked out. that's what happened here. how fantastic the margin is. this morning we were talking about steve iceman didn't like zillow for that reason he said i think it is a great business that other one. that is a buy. he said i could quote him on that >> there it is >> i like it and i am going to be buying it tomorrow. >> tim >> as

. >> right zillow has gone into this ibuying space. buff you have to think about another company like open door that's down more than 12% today which has made an even bigger bet on ibuying and julia, analysts will have to wonder, does this actually open up a pathway for open door to get more market share or this company remember has been buying many more homes through this program in the second quarter. does that weigh on them more >> yeah, it might, deirdre one factor that impacted zillow and all these companies trying to flip houses the fact that workers are in such short supply that's one of the issues that zillow cited in the reasons it couldn't get the houses fixed up fast enough. they couldn't hire enough workers. >>> peloton has been stuck in first gear down 40% since january. but bank of america says now is the time to buy. forecasting a beat and strong guidance when that name reports results happening on thursday. catch those numbers here on "techcheck." stay with us ♪ wealth is breaking ground on your biggest project yet. w

in real estate giant, zillow shut down its business after losing nearly $400 million. what it can tell us about the housing market on the barron's roundtable my colleagues ben, and jack hough. so ben i've got to give you credit. how right they were the markets focus on a real strong jobs number up or even inflation not seem to worrying investors. they dissipated the fed is tapering right now does not change the fact socialist growth it picks up again as inflation still remains a strong, rates are so low. this just makes it really easy to start buying stocks to keep the market going. companies, despite inflation are still maintaining their profit margin the profit margins are strong, this is a great bird really seems to suggest those fears, we may get the inflation but we are not going get the stag. left back. >> in fact in the second quarter margins were an all-time high at were still pretty close to that level. investors love all this good news about covid, right ben? >> that is right. we had vaccines for children approved, we had pfizer kind of out of the blue sing a

their analysis found 66% of zillow's current inventory is listed below its purchase price. two-day drop, by the way, has zillow tracking since march 2020, if this decline continues and scott, all of this ahead of this big earnings report coming out after today's closing bell back over to you >> i think the ceo's coming on after that which will be a very important interview given the fact what the stock is doing right now. don chu, thank you very much somebody who is pretty happy that they no longer own this name even if they had to get out at a bit of a loss >> yeah. i got this one wrong, and look, i don't think that people should be screaming at the ceo. sometimes you try things and they don't go well they're not good at this, it turns out so they give it a lot. the realtors all laughed at that real estate is not a software business, these people have noed where what they're doing a lot of people said of course they know what they're doing look how big the stock's market cap is, but the realtors in the local markets watching these people buy real estate with a blindfold on

eú+ mixed suggests people really do see this as a zillow issue. alix: thanks a lot, bloomberg's dave wilson. coming up, oil lower, natural gas prices higher. over in europe, there's really no more supply coming from russia. we are still dealing with that tight supply. this is bloomberg. ♪ guy: live from london, i'm guy johnson. alix steel is over in new york. this is "bloomberg markets." this is one of alix's favorite moments, getting the eia data regarding oil inventories. but actually, i am going to talk about jet fuel because on ì(lc% you. not that i'm going to be. don't get frightened. but i am wondering whether or not we see a pickup in jet fuel. we are expecting inventories to slightly pickup, and the data drops right on cue. alix: we have builds, overall inventory of 3 million barrels. cushing saw a draw. that will put a little more pressure on inventories that were also pretty low. do your point, it is a mixed picture on the demand front. distillate inventories grew, so little bit of a divergence there. refinery utilization is picking r

can we take a look at expedia -- or rather, zillow? i have expedia on the mind because i and booking a vacation. can we take a look at zillow? tom: going to murray hill? [laughter] jonathan: we are down 19% on zillow. tom: i have no sympathy. i'm sorry. jonathan: zillow shutting its home flipping business. they've got to sell 7000 homes. i love the comment from the ceo. i think everyone was saying they would become a market risk taker. tom: i am not going to give my opinion. it is just children playing. jonathan: you think this is children playing? tom: it's a joke. jonathan: i can't tell when he is being serious or not. tom: they bit big on house flipping. jonathan: right. tom: how is that different than robinhood with the tangible assets? it is basically the robinhood of housing. jonathan: is that how you describe it? tom: i don't know. lisa: but he has no opinion. [laughter] tom: can we get going here on politics? jonathan: we are down 19%. tom: the 9:00 hour, i will grilled mayor adams of new york city on his police force. to me, t

stock surging post earnings as activision and zillow plunge later on, microsoft enters the metaverse. netflix launches its games >> we will start, though, with the massive melt up in tech stocks the nasdaq looking to continue its longest winning streak since august of last year. still hovering around the fly line at the moment mike santolli with us looking at whether stocks are too hot this is the question of the moment, mike >> it is i would argue we're in a reheating phase, maybe not yet to an overheating phase but it has been quite a month a munt ago tomorrow that we did bottom and the nasdaq 100 up 10%. a lot are moving even faster this is the five-day chart remember the buzz etf. the social sentiment basket of stocks that are really being talked about a lot online. tesla is top of the list and affirm and a lot of the other ev names apple, as well essentially a lot of those stocks that basically have a lot of carry on social media are running, as are small cap stocks this is important to note. this is the time of year where there is a grab for the riskier parts of the market and i

analyst, edward ruma, highlighted that most of the homes zillow had purchased with this goal of fixing them up and flipping them , are now worthless than what zillow paid for them, and now bloomberg is reporting that the real estate services company is looking to sell about 7,000 of these homes to the tune of about $2.8 billion, the news comes just a few weeks after zillow reportedly stopped buying homes, because they could not find the labor, or the construction workers to spruce them up for resale but either way, according to this analyst at keybanc, zillow leaned into buying homes at precisely the wrong time. they probably bought too high, he's indicating, and now, have to unload them at a much-lower price so you've got zillow tank ing right now, pretty significant amount. all right anything that can move is on the move in pop stock harley-davidson revving up after the european union said it was dropping retaliatory tariffs imposed on u.s. products. the voter cycle maker had been hit hard by eyou tariffs during a trade dispute that centered largely on steel and aluminum tariffs impo

texas instruments and zillow thank you, grace that does it for us on "worldwide exchange. we'll see you back here live from london tomorrow as well i'll see you on "squawk box" as well the whole team picking up the coverage next. take care. have a great day -had enough? -no... arthritis. here. new aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. every day in business brings something new. so get the flexibility of d the new mobile servicen. designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options. available now for comcast business internet customers with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities. - [greg] military life can have its challenges, but sometimes veteran life brings more. - [announcer] as

zillow leaving the home flipping market. i have a conversation with the cfo of open-door about how it can succeed where others have failed. this is bloomberg. ♪ emily: zillow may not have made the home flipping business profitable. opendoor has. more than 15,000 homes in the third quarter, a 79% increase. zillow ending its flipping business in selling 2000 homes. joining me now is the cfo of opendoor. how will opendoor avoid what happened to zillow? carie: thank you for having me. there is a lot in being purpose built. all of what we do is taking the traditional listing process and move it online to make it simple and convenient for home sellers. that is all that we do. it is our business. we have seven years investment in the team to do that repeatedly at scale with a lot of growth behind it. emily: what do you think they did wrong? why couldn't they get it right? carie: we are focused on what we can do right for customers. no one is working harder for customers right now, giving them an alternative, than we are. courts a

we will continue to keep an eye on bed, bath, avis and zillow. d. each day looks different than the last. but, whatever work becomes, the world works with servicenow. trading isn't just a hobby. it's your future. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim trading™ is right there with you. to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform. because we take trading as seriously as you do. thinkorswim trading™ from td ameritrade. wondering what actually goes into your multi-vitamin. becat new chapter.ading as seriously as you do. its innovation organic ingredients and fermentation. fermentation? yes, formulated to help your body really truly absorb the natural goodness. new chapter. wellness well done. >>> good wednesday morning got a new all-time high on the nasdaq but all eyes are going to turn the fed as we look for perhaps

lately zillow is off 70%. the highs. uber hovering around $45 a share. ipo price back in 2019 and facebook as you know, continues to face scrutiny and a severe valuation haircut compared to its peers. is now the time to buy in our next guest says yes. let's talk about it with evercore's mark mahaney whose new book "nothing, but net" is out today. congratulations on that. i know you've been working on it for a long time. good to see you. >> thanks, carl. thanks for the time. >> we're calling these hard to love stocks. are they hard to love and which one do you love the best >> well, the ones you mentioned, i like facebook and i think it's a high-quality asset that's dislocated and i like uber and it's a future asset that's still misunderstood and it's got an enormous growth runway ahead of it and what i try to highlight is dislocated high-quality stocks and it's dislocated given all of that controversy. uber has yet to prove itself as a high-quality stock and it's an incredibly strong value proposition. >> i wo

zillow on track for the biggest single day percentage drop since march of 2020 after the online real estate platform set of plans to shut down the business that buys and sells home zillow offers it will reduce the workforce by 25%, that is big, they are cutting a quarter of their workforce simply because they are shutting down the one division because they did not timed it right. they bought the homes that were too expensive, they could not flip them because they could not get the construction workers because it is a labor shortage, zillow down, take an opportunity to scoop up 300 shares of zillow, she could look like a genius if you buy low may be a good hire, we shall see, house speaker nancy pelosi adding four weeks of paid family and medical leave to president biden social spending bill this comes one day after democrats suffered losses at the polls in an off year election, will the party strategy build back better from the bipartisan infrastructure bill, is an infrastructure vote close, he enjoys is now from there. >> we are a little bit closer on the infrastructure bill in the

. >>> meanwhile, zillow is laying off 25% of its 6,400 workers. the move comes as the seattle-based company shuts down its home flipping business zillow offers. the company pressed pause on the program last month after it said it had a backlog of homes that required renovations. executives said the business was, quote, too risky and addressed too few customers. >>> and some mcdonald's locations today are offering the first vegetarian option. eight of the fast food chain's restaurants will be testing the mcplant for a limited time. the patty is made with plant-based ingredients including peas, rice, and potatoes. it's served on a sesame seed bun. with lettuce, tomatoes, pickles, and onions. customers can also ask for cheese if they want it. as long as the fries come with it, i'm with it. anne-marie? >> i'm totally with it, too. the name i'm not so crazy about. listen, i don't think you can see our two shot. today when i got dressed i thought to myself, i think diane has a similar dress to this. turns out, diane, we're wearing the exact same dress r

we didn't own very much of zillow. it was a very small position for us but we don't want to to leave it there and do nothing. even though a bit of after bounce today, i think -- charles: i think you made the right move without a doubt. sending a letter is so thoughtful. very few guests do that. my goal on the show to help the individual investor. i saw there is collapse of people passing the charter financial analyst exam. i find that to be curious, people are the in market now. what is happening with the industry right now? >> it is funny. two of my team members are taking the test right now and there was a mandatory covid deferral and so for a year, if you had been studying you had to start restudying and then take the test and so that just started again in the summer and, the test also went from paper to computer. i think for some learners that is a hard method. but in the industry overall i think you have a younger cohort of investors who have only been investing while interest rates are going down and bonds up and

are you worried about this, is the zillow signal something we should worry about? >> neil, thank you for your kind words, i have the utmost respect for you and i enjoy being on your show because i think i can actually clarify what's used as click bait in my opinion. this zillow announcement, people are saying that this may be an indication or a precursor to the market plummeting. i see it differently, i think it's a great indicator that the market continues to be extremely strong and you may think once again, i'm crazy, but my thinking behind that, in order to flip properties, you have to buy them at a discount and it's difficult to do that right now because the market continues to be strong because we have limited inventory in the market. so i think that zillow got a little ahead of themselves here and entering the flipping market when it just wasn't the right time. but i think also with adding to this announcement is the fact that the supply chain issues have added to the fact they haven't been able to renovate these homes as quickly as anticipated and labor shor

zillow is getting out of the home flipping business. zillow would buy and renovate houses to sell. a combination of competition and a volatile housing market made the service flop. company says 25% of the workforce will be cut, about 2,000 jobs. >> let's bring in our chief meteorologist. >> that is why we live here right, one of the reasons. we are doing good. we got a nice break in between the storm activity. we will get you a view of san francisco and the world famous golden gate bridge. looking spectacular. a lot of the cloud cover cleared out. we had a small window of sunshine. san francisco at 66. light wind out of the north and chillier 50s on the way at 10 and 11:00. tomorrow i am seeing dry weather from the area of high pressure. that is what helped to push the storm track off to the north. it will be a really quick break. i see it moving on out. then i will see a weaker system dropping down from the north. we are only going to get a spotty rain chance and certainly picking up more rain. all of the details on the totals once we get you through the temperatures tomorrow. we

zillow said it lost more than a half billion buying and flipping houses, which is sobering. who do you know that has lost money selling a house in the past ten years? zillow pulled off the impossible here, losing money in a market where house prices are up like 13% a year. one reason is it overpaid for the homes which makes you wonder if that zeshimates are accurate. 19 million people got a ride with lyft in the last three months, and that's about 9,000 people every hour. finally, a group of economists decided to write a paper on the economics of being james bond, specifically how much it costs to eat in all of the restaurants, including a martini. he paid 18% of his salary back in the '50s, and it's 26% of his salary now. in the 1955 novel, bond makes 3.5 times the british salary. the average british salary today is 31,000 pounds. and that is $150,000, which is not bad for government work. >> maybe he has like an expense account like the president? >> i think he does. >> yeah, they cut out in the movie where he asks for the receipt, and then he takes out his phone, and then

shares of zillow falling the most since march. this afternoon is that the company plans to offload 7000 homes. it pulls back from the home flipping business. bank of america calling this a clear negative. zillow is trying to recover after buying too many houses initially. now, many will be listed for less than the company paid. coming up, an exclusive interview with the ceo of amazon web services. how the cloud giant got an early advantage over rivals microsoft and google and intends to keep the head start, next. this is bloomberg. ♪ moving is a handful. no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was easy. i know, right? and even save with special offers just for movers. really? yep! so while you handle that, you can keep your internet and all those shows you love, and save money while you're at it with special offers just for movers at xfinity.com/moving. emily: welcome back to "bloomberg technology." i'm emily chang in seattle

home buying became too risky they have hundreds of thousands of homes to sell and zillow is going to take a half a billion of writedowns. shares have lost 2/3 of their value since february. >>> and alaska airlines announcing it will no longer serve water in plastic bottles or cups.d recyclable paper cups they're switching to plant-based cartons and recyclable paper cups the airline expected to save 2 million pounds of single use plastics over the next year. >>> on wall street the dow up 105 the s&p up 30. the nasdaq up 162. >>> i'm shepard smith on cnbc. it's the bottom of the hour time for the top of the news. >>> covid game changer kids rolling up their sleeves to get the shot what parents need to know. >>> aaron rodgers benched after reportedly testing positive for covid. why his vaccination status is w now at the center of a controversy. >>> first, after a brutal election night, democrats under new pressure to pass president biden's agenda >> and house democrats have just made a big move. speaker nancy pelosi announcing today they're making a change, putting four weeks of paid fa

a story we continue to watch earlier this month, cathie wood 's etf owned zillow shares. shares of zillow are down 40% is month following the decision to shut down its home flipping operation. coming up, and age of growth for retail shopping. this is bloomberg. ♪ caroline: our grocery shop at -- shopping habits have changed. online grocery sales have increased. is this trend staying around as we move out of the pandemic. our guest is the ceo focusing on sustainability. how are sales? >> it is stronger than ever. we saw the same huge boost during the pandemic that all other grocery platforms have seen. in 2021, we have seen continued strength. we have seen a lot of those purchasing habits that customers have retained post-pandemic. order frequency is as high as it was. caroline: you are expanding. tell us why california and how you continue to do that? >> we are approaching grocery from a different angle. our goal is to build the affordable grocery store online doesn't exist. most online retailers are focused on the affluent urban customer demographic. there are 100 mill

zillow is quitting its home flipping business. it plans to reduce its workforce 25% as it winds down the division in the coming months. zillow says it's pricing algorithms work accurate enough sometimes causing them to overpay for houses. avis sword -- soared after an executive said it will pay a big role in electric vehicle adoption in the u.s.. while they didn't this close plans to add ev's to the fleet, executives say that doesn't mean they are pursuing potential deals. lyft saw airport rides rise compared to last year. rakitin --rakuten is one of their biggest shareholders. coming up, shifting policy with global central banks. this is bloomberg. ♪ haidi: time for morning calls. our economics team is changing the call. this is six months earlier than previously forecast. shery: looking at the dollar and where it will move immediately after the meeting. we see it -- bank of america sees it strengthening. haidi: this began in australia this week. we are seeing stability in the 10 year bond yield. let's bring it chief economist.

shares of zillow following -- following the most since march. the company plans to offload 7000 homes. bank of america calling this a clear negative. zillow is trying to recover after buying too many houses initially. now, many will be listed for less than the company paid. coming up, an exclusive interview with adam so lipsky, half a year into his job with amazon. how they got an advantage over microsoft and google and intends to keep the head start, next. this is bloomberg. ♪ emily: welcome back to bloomberg technology. i'm emily in seattle. earlier this year, a historic changing of the guard took place in this town. jeff bezos stepped down as amazon ceo, andy jassy stepped up and adam selipsky became the new ceo of amazon web services. his history stretches back to the early days before it officially debuted in 2006 and became the world's first market leader cloud computing. i sat down with him for bloomberg studio 1.0 to talk about what it was like getting the call to join a ws back when it was in stealth mode. >> it was very secret. the c

arc making moves to sell most of the remaining zillow stake worth around $37 million and zillow down 50% year to date and just since the start of this month. basically over the last two weeks it has sold off something like 37%, david, as it has exited buying and added more attention to its competitors like open door and offer pad solutions which have continued to stay in that market even as zillow has said its algorithm can't keep pace. >> the strategy when introduced by zillow, they are finding buyers for large groups of homes because there are others out there still pursuing the strategy, not house flipping, pursuing a strategy of renting homes to people as opposed to having them buy them >> still homes to sell on their books. meanwhile we're watching tesla speaking of cathie wood and arc, back to 999 and a market cap that david might soon cross back below a trillion dollars. >> i think it is just below a trillion in the old market cap wars that we kind of watch flirting with that trillion dollar level, but had been as high as i think 1.2, so you are talking about at least a loss o

when i think about zillow i don't see them as investors. they were just buying houses and paying way too much, an example is i'd compete against them on a house and they would offer 15-20 % more than i could ever offer and they were paying way too much for houses and if you can't make money what do you do with those houses? neil: these are the same people who value houses so if they are getting that wrong it's a whole other rabbit hole. >> the zillow estimate was really hard to go off because you could have two very similar homes one is brand new and one is falling over. if you average it you have an estimate but it's not a true estimate. neil: so how do you decide on the show, was curious, you know, which way to go, and how, what you flip, what you move on from, how do you decide that? how does the show structure that >> well, flip or flop, flipping my own houses flipping 101 which is my new show, season two is on the air how, i'm mentoring rookie flippers, so i don't get to meet the rookie flippers until the first day of the project. so o

ross martin greenland, cuz she can like bullshit or zillow. crossing that there with ludowici. here was the bush taught was royal. he don't, we're showed beatrice little day will korean you was raised, shall not put the ribbon midst lay so used to polish north south american with a medicaid case was a will put medicine levied cream, not in my but when you start to night that the kim my kitten. lucky late. so it is. i see. yep. see local. see local for tube bishop lena. what god skewed most. ned bully with both of them were struck. the h not met us. the blue but last one. he must wish lens for will not for when you this is the malenko fully completed for the next year. yacoma betrayed yukon lamb, a tree boy insurer but speckled but on your credit because i think we have im green ashlyn near the 63. i think it may be recorded on missouri to football. herb. lisa rosa. martha. thank you. push you put a bonus when people experience children ever get to receive. wow, crazy. ah, the idea came, what's the issue of american school political put it out mash up with them. ship little cous

zillow pulled the club on its operation, triggering the share plunge. nintendo has cut its sales target. the company blaming shortages and a logistics bottleneck saying there is no sign of relief ahead. nintendo upgraded its operating outlook. new york city mayor elect eric adams will take his first three paychecks in bitcoin when he takes over city hall in january. he said he wanted to turn new york into a crypto friendly city, saying he wagered up "friendly competition" with the mayor of miami, the first to set up a crypto city coin cryptocurrency. coming up, the chip shortage seems a problem for almost everyone but qualcomm reporting better-than-expected earnings results in the stock soaring. i will speak with the ceo next about how he is navigating supply chain issues. how does he think? he will join me coming up. this is bloomberg. ♪ >> we have constraints across the board and you need to see how the demand would play out across the industry but we are comfortable with supply playing out as we had planned. emily: qualcomm's cfo expressing confide

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obviously not if you are zillow in the housing market. the reason was they could predict all prices, out six months ahead of time and had a crystal ball. that failed miserably and now they are laying off about a quarter of their workers. charles: autonomous cars when we do get them from it will be illegal for humans to drive because they could never figure out why the car in front of them all of a sudden made a u-turn. the present driving it was like -- [laughter] anyway -- >> i don't trust it yet. charles: will not be allowed to drive, that's all i can tell you. a lot of winners in politics this week but i do want to highlight new york city mayor eric adams because he saying the right things about cleaning up the city and taking the first three paychecks and for crime. squandering leadership in the financial capitol well, we are losing a lot of people quickly. what are your thoughts about that? >> he ran for the police and forcible choices are regardless of this year's democratic republican although he ran against democrats, he went as a