♪ >> i'm emily chang in san francisco and this is bloomberg technology. coming up in the next hour, the bull's love affair with tech has been put to the test. has the industry officially overheated? and the rush to get out of u.s. stocks after facebook results almost $3 billion getting wiped from market caps since. but investor is buying. he tells why he's still a big believer in mark zuckerburg, ahead. plus, the earnings still rolling in with apple and tesla both on

deck this week. what to look for when apple eports to tuesday. monday opened with a big dip in tech trading despite the fact that apple and amazon continue to edge toward $1 trillion. investors have a case of the jitters. billions have been wiped off the market caps of facebook, twitter, netflix, intel and more. amazon is barely holding on to its gains. we're still awaiting results for tuesday. tesla on wednesday. but will any sign of weakness kick off another downward piral? is this a short-term flip or the beginning of a longer term pullback? >> it's starting to look like it could be the start of a longer term pil pullback. look, when you have amazon and alphabet report the kind of earnings that they did, which were great, and you still see the broader tech base get sold off in the way it has, you have to be a little bit concerned.

when you look at what happened last week, look the rotation out of a lot of the tech names into the other sectors, when you consider the fact that -- what facebook did and the way it sort of spooked the market, you go back to netflix a couple of weeks ago and the same thing. this is a group of investors right now who have ridden this rocket so high and so far that a lot of folks are concerned that they don't want to be left holding the bag should this sort of be the end or at least the peak of this cycle. emily: there are a lot of facebook debaters out there. listen to this earlier from calvert investment president. >> facebook is very, very dependent on its ability to expose a large number of users to all sorts of input, conduct this really large scale psychological experiment and sell that information to advertisers. that's what's really coming under pressure. and facebook doesn't have a lot of other options.

emily: these debates have spread all the way to europe. is this a global selloff? are we seeing pushback like this in other markets? >> i'm just looking at what happened to the technology sector in europe today. broad brush down across the spectrum. we're seeing seven billion euros wiped off that sector in europe. you're seeing $34 billion worth wiped off of the asia index when it comes to technology. this is across the spectrum. it's not just this chip maker, it's more broad than. that you're looking at s&p, a company that provides software to businesses, we're seeing other software companies on the down slide. only five or six stocks in europe in the tech sector were in the green today. so when you see this broad brush selling that you're getting in the united states, when you see maybe being a cyclical change of events, when you have banks saying, short the sector, this does have spillon effects across different regions. emily: so here's the question.

where will the money flow instead? >> right now what you're seeing it flow into is the sort of traditional industrial names. last week, if you think about what happened last week, the best performing sector overall was the dow transportation index. it was up about 2% versus the declines that we saw in the rest of the market and particularly in tech. this is what you're seeing preeted right now. a lot of folks are going into the industrial names, the television names , energy names and industrial names. this is where a lot of folks see safety. this is where a lot of folks see alue and where they see some sort of growth that may be a little bit better than what they think is going to happen for some of the tech names going forward. emily: you mentioned the call t sort of short tech stocks. where in particular? >> the fangs. i don't just mean facebook, amazon, netflix, google, which of course are the big companies out there, i'm also talking about elongated fangs.

apple as well. i'm looking at the moment at a particular chart shah shows how much has been eroded from that group. a quarter of a trillion dollars worth knocked off their market caps so far since the facebook debacle in terms of their second quarter figures. this is on gtv. bank of america and merrill lynch are saying, this harogbueze of facebook in particular was a sign of a peaking market. they call them consult stocks overall. this is a classic late-stage event according to them. so really when you see monetary tightening start to be debated, when you see slower growth, when starting to see a movement out of these momentum stocks, getting into the safer sectors, getting into travel and an interesting call coming from bank of america, saying get into emerging markets as well when you have dollar weakness going on. this is going to have some naysayers. of course there's always two sides to the market. that's when we see. when you have the likes of a strategist over at oppenheimer

saying, maybe this is a buying opportunity, they're saying this likely present morse opportunity to buy the dips than to overall run for the hills. question is, how long are they going to run for the hills for? emily: i spoke to an investor earlier who just bought $200,000 worth of facebook stock. so he's a buyer. we're going to talk to him later in the show. hear that interview. tech is very diverse. apple and tesla are very different companies. what are the value plays still in technology that may be considered a safer bet at this point? >> there's been a lot of debate about sort of a rotation into value stocks. but the interesting thing about it is within the tech space there are a lot of value names. if you look at the sort of van guard value e.t.f., its number one holding is microsoft. when you consider apple, keep in mind its largest shareholder or one of its largest shareholders is of course one of the biggest value investors of all time, warren buffett. there are other names in there, including cisco and intel, when you look at a price to earnings

basis, price to book basis, and some of the other price to cash flow and other metrics, they all sort of fall into the category of value placed and we are seeing some analysts single out some of those stocks going forward as being maybe where you want to be. getting away from some of the pure growth names that was netflix and getting into some of these more -- what they consider to be value stocks and you are seeing a little bit of strength here. if you factor out some of the worst of the selling that we've seen, you'll see that names like microsoft, alphabet have actually held up pretty well, even given some of the down turn that we've seen in the broader tech space. emily: facebook put a lot of the gdpr.on its results what are people saying about whether or not gdpr and european privacy laws really are to blame and whether we'll see similar fallout with other tech companies? >> i think thus far the proof has been that facebook perhaps

was hammered. but gdpr has been affecting the likes of alphabet asle and it's been a boone to their business. they went to alphabet's google because they didn't trust the rest of the other advertising areas to ensure you're targeting the right user base, are actually gdpr compliant. facebook and google were most meant to benefit for that reason. it seems as though only google did. really facebook fell out of favor because of -- this is the real first tell tail quarter of whether or not it affected users' desire to be on the platform and exposed to targeted advertisers. in europe you're unable to opt out of facebook. they lost a million users overall. it's still a drop in the ocean compared to how many users they have across the board but still people -- from europe there's cynicism about whether gdpr is what hurt their numbers or whether it was more the p.r. effect of potential manipulation of developed country elections

through the use of facebook and russia potentially infiltrating the platform. all of this, of course, the seismic shift that was cambridge analytica as well. that was felt in the previous quarter. it's noted that facebook wasn't the only one who blamed gdpr on loss of numbers. so did twitter. there are cynics saying it's an easy way of trying to find an execution. we don't think it's the -- excuse. we don't think it's the laws. but they're not the only one claiming it. emily: spotify also mentioned gdp flmbings their results. apple out tuesday. tesla on wednesday. what are you going to be watching? >> apple of course will be the most important i think just because folks really want to see how much -- basically tim cook has been able to drive services revenue, to make up a bigger portion of sales. of course it's about 15% of sales now. it was less than 10% of sales just six or seven quarters ago. so they've made a lot of progress there. we know iphone sales' growth is

going to be relatively slow. i think the consensus is around 2% growth for iphone sales. so i think if you really want to get a clear picture of what this company's going to be, the service's revenue is really where you want to pay attention to. tesla is going to be the most exciting given what happened last quarter and given all the sort of circumstances surrounding elon musk's ability to not just generate profits but really to get these cars off the production line and into the hands of all of the customers who have already handed over their deposits. emily: thank you both. lots more to cover this week. meantime, here in the united states, facebook continues to grapple with how they handle hate speech. while not infringing on freedom of speech. and one viventer believes it's not face book's fault when people spout intolerance on the social network. listen. >> i think this is one of the great examples in human time of us not interested in

accountability. facebook didn't make you a racist. you made yourself a racist. emily: you'll hear our entire conversation on facebook, apple, amazon and much, much more coming up later in the show. up next, we're going to hear from galaxy digital founder and c.e.o. about the prospects for his crypto merchant bank ahead of its trading debut in canada. if you like bloomberg news, check us out on the radio, listen on the radio app, bloomberg.com and on sir yiss x.m. ♪.

emily: cryptocurrency merchant

bank galaxy digital will start trading wednesday. it could be a milestone moment for the industry and for the company's founder. the former goldman sachs partner discussed how investors should view the business when he spoke exclusively with bloomberg in toronto. >> 100% traded multiple. because you have a book of 45 different investments that people don't have access to. to start with. the norm alec which the investors can't get access to the portfolio we have. but you also have three other businesses that are generating revenue and that are going to be very profitable. >> already? >> they're generating revenue. they're not profitable yet. but they will all be profitable very soon. so you'll have -- in some time in the future, you'll look at those businesses and you'll put a multiple on those businesses and you'll put a multiple on -- [inaudible] -- we're a year away from that. >> so, what's -- you started

really with the macro trading business. that's what you began doing a few years ago. then you got into the private investment business so those -- so those are very much live. >> those are robust right now. >> you're trying to build an advisory business. >> we're building an advisory business. we have the right team in place. we're hiring one or two more people. and that's two parts. we already were in this business of helping people with white papers and giving advice. we're really moving into the more proper banking business. where we're working on a merger opportunity right now, we're working on -- in the long run -- >> as an agent? >> in between. with an advisory fee. hopefully we sign an engagement letter soon and that will be a nice piece of business. our real purpose in the long run will be to help raise capital for people in this system. the world, the crip toe revolution, -- crypto revolution, will fulfill its destiny with market cap.

it's going to need lots of capital and we want to be the credentializer who raises capital for the best projects. we have $450 million under management. >> including not external capital. >> external capital. so we have a $325 million venture account that operates in and around the e.o.c. ecosystem. so it was a specific mandate. we have a cash management account. and then we have our bloomberg galaxy crypto index fund which tracks the index that we set up with bloomberg. >> so a year from now, how much will you have in a.u.m.? >> i hope more than we have now. >> of course you hope. what does the ramp look like? >> i think we're not going to raise another venture fund because we have venture on our own balance sheet and we have this other fund. i think the bloomberg galaxy index is going to be one of those things where you're grinding in money and all of a

sudden it hits an inflexion. we are spending tons of time educating institutional investors about the space and we're hoping that all that hard elbow grease of education comes back when they start buying. this is a really good product for institutional investors. i laugh, i've got four sales guys, i call it the boiler room. they are on the phone, they are traveling all around the country. and the globe sitting with people and saying, hey, this is how it works. this is why you should invest, this is your first step in. we raised more money last month -- this month than last month. i have a feeling it's going to be a slow grind and then it will just pop. if it got to $500 million in a year, i'd be very excited. galaxy digital founder and c.e.o. speaking to bloomberg on -- in toronto. the parent company of bloomberg news owns and operates the bloomberg galaxy crypto index in

partnership with galaxy digital. it is a sign that network equipment sellers are starting to gain business from new cellular technology. nokia has won an agreement to build fifth generation mobile networks in the united states. coming up, investors and analysts betting against tesla earnings on wednesday. we'll look at what might be bringing the company down. and bloomberg tech is livestreaming on twitter. follow us on twitter. this is bloomberg. ♪

emily: despite the electric car maker meeting its production goals, goldman says customer enthusiasm may be a winning. the reason -- order availability has increased as well as test drives and they're not the only ones sounding the alarm. this. >> elon miss must is a very, -- musk is a very very, smart man but there are very smart people in this world anding you have to execute. he's got execution problems. we'll see how his quarter goes. but he's negative cash flow, he's building cars in a tent. owes -- he's nowhere near autonomous driving and big competition is coming in his space yecks year -- next year. emily: joining me to discuss rom colorado and new york.

first, lay it all out for us. the bulls and the bears. what people are saying right now. >> so the big thing that's going on is elon musk sort of pulled out all the stops at the end of last month and hit this big milestone. 5,000 cars per week. which is really impressive. tesla is a mass manufacturer now which was the goal. the question, is how much money it did cost to do that? they did all these crazy things, including building this tent. so how bad is that going to effect tesla's bottom line? and then how sustainable is this? can they keep making these cars at this pace or even speed the pace up? despite all of the crazy things that they did to get there. emily: so which way do you lean? bloomberg has a story out today that says the clouds are darkening over tesla. are they really? >> we think short term the risk is probably to the upside here. what we're looking at on the quarter is really cash gross margins and the bull case is predicated on the idea that they'll be able to make a lot of

model threes and generate cash from that manufacturing. the bear case has gotten a lot of steam, especially recently. give all the struggles that the company's had and all of the special one-time effort that they made to hit these production goals. so as we look at what they're going to be doing over the next couple of weeks, specifically on wednesday, speaking to those cash gross margins, any sort of good news is going to drive the stock higher. over the long term we have a significant amount of concern around sustainability, especially given the fact that the company wasn't willing to raise money here. we think the company would be well served to put cash on the balance sheerkts extend their runway and get focused on execution rather than all of the press releases and noise that they've gotten in the public round. emily: isn't looking for any sort of good news kind of a low bar? >> absolutely. i'll throw in one other thing that people are going to be looking at which is the demeanor of mr. musk. in the last earnings call, he sort of snapped at some of the sort of more difficult questions

from wall street analysts. so i think, one good sign, and this is going to be a low bar, but if he is able to play it cool, if the call is sort of uneventful in terms of any outbursts, that will probably be taken as a good sign as well. emily: musk has had a lot of ups and downs. he's recently apologized for some of the things he said on twitter. you are one of the analysts that -- he's insulting analysts across the board smed -- board. how do you feel about his behavior? >> it's a difficult job to be the c.e.o. of a public company. i think he needs to grow up and -- emily: yeah, but other c.e.o.'s don't behave that way. >> sure. they don't tpwhave way. but -- behave that way. but they're under a lot of pressure. i'll say that i don't think it's respectful and i don't think it's right. but it is what it is. i have a job to do and i'll do my job. emily: talk to us about some of the other things that elon musk

has been working on and to the point, it's that musk is a visionary but he has an execution problem. now tesla is working on direct delivery from the factory to the home. all of these things sound great. but isn't it just about getting as many cars out as possible and making sure it doesn't hit the bottom line? >> yeah. it kind of depends how you see this can the sort of really optimistic case is that all of these new things that elon musk is doing, including something as small as delivering cars directly from the factory, but as large as sort of new models or autonomous vehicles, or sort of reimagining the energy grid, that's future stuff. so if he's able to keep pulling these tricks out of his hat, pulling these rabbits out of his hat, that looks really good. the other way of looking at this company is it's just a car company that's having trouble getting cars out the door. that's bad. if that's all you are. so that's kind of where the tension is.

emily: final thoughts. 20 seconds. >> we think there is a big vision here. we think the execution issues are weighing this company down and they need to make some decisions about how focused they're going to get on this egscution -- execution and whether they're going to make changes to fulfill that vision. emily: we'll see if he lets you do your job. thank you both. coming up, he's a big backer of facebook and despite its last quarter, gary is only buying more. that's next. this is bloomberg. ♪

emily: this is bloomberg technology. it's a time to worry about facebook -- is it time to worry about facebook? it may be running out of new users and investors reacted swiftly. wiping $100 billion in market value off the stock. but one person who's not worried is investor gary vaynerchuk. here's what he had to say about the stock today. we sat down with him about a wide ranging interview that began with facebook. >> i bought a couple hundred thousand dollars of shares. i bought some more this morning. because i'm a long-term believer in the stock. and i don't think there's going

to be a lot of moments over the next three to four years outside of macroeconomics that i'm going to be able to take advantage of. i don't tend to buy a lat of publicly traded stocks -- a lot of publicly traded stocks. my original facebook came pre-i.p.o. when it got hit with the cambridge analytica stuff and mark was on trial, i bought a ton and then obviously off this missing numbers or news recently, i've been buying up a little bit more. mainly because i think in the next number of years it's going to be a good buy. emily: it's interesting, that is a big bet, early facebook investor who has been out there very publicly critical of facebook, he compared facebook to phillip morris to me in terms of facebook's negative impact on the world. what about concerns about fake snuzz? what about onlane hate? what about concerns about our privacy? >> i think there is a stunning nonconversation about taking on

some sense of responsibility. meaning, sure. but choosing cnn or fox or msnbc has as many dynamics as what you're seeing in your feed and then more importantly what you're choosing to consume as real. to me the thought that facebook is any different than twitter or instagram, which obviously they own, or websites or a million different ways we consume is kind of laughable and silly. visa and target and the american government itself has had breaches of information far more dramatic and so, you know, yeah, i understand the concept. but i think making a jump from phillip morris, which systemically spent lobbying dollars and tried to pay off politicses for four to five decades to suppress information, is an aufrly big jump by that

para-- awfully big jump by that person. emily: what about profitable versus privacy? will one always trump the other? and can we actually trust facebook? >> i have no problem trusting facebook any more than i trust any other company on earth. profitability and privacy is kind of funny to me. we choose to do convenience over profitability every day of the week. and privacy. the way we pick privacy on a pedestal is almost nonexistent in our actions. every person watching this right now gives up privacy every day for convenience and speed. so whether it's amazon or google or apple or facebook or any of these tchaps sit as a layer on top of the internet, we have shown through our actions over the last 30 years, and continue to, with the usage of instagram and others, i love all the people protesting facebook on instagram. we prove as humans all the time how we think about privacy, which is we love to talk about it, but we don't fear it as much

because the underlining issue is the amount of bad things that happen to the health and well-being of our family or having our money stolen is extremely far and few between. emily: what about the forces that may be bigger than us? the fact that russia tried to hack our elections, using facebook, that there's evidence that they're doing it again to sow discord? has facebook done enough to prevent itself from being weaponized? >> look, facebook, this network, fox, cnn, twitter, it's all the same game, where i think about it, from a mack row, which is, we -- macro, which, is we make decisions. facebook or the russians didn't make us pull for trump or hillary. so i think that the information that people are buying ads and running them in our streams is very interesting. because if you look at the execution of people that run political ads, the cost of penetrating somebody with a different opinion versus one that already reinforces your stance is where this starts getting far more interesting.

i think this is one of the great examples in human time of it us not interested in accountability. facebook didn't make you a racist. you made yourself a racist. emily: let's talk about twitter. you use twitter a lot. we saw the same huge dip on the back of twitter earnings and it's very clear that twitter is just not in a high gross state. they've had hit -- growth state. they've hit a plateau. the influence is there. the president of the united states is using it as his megaphone. it's not the next facebook. >> no. but it was never the next facebook. the truth is, facebook is all encompassing. with instagram and who knows what they're up to on their next innovation. you have what's app. yes, it is not the next facebook. i assume it's not priced on wall street in the same manner. if you look closely at a moon pie, which is a small snack

brand, if you look at what wendy reas is doing, i will say -- wendy's is doing, i will say that the business world is starting to understand how to use facebook to drive business. we're working with kraft-heintz on miracle whip. it stuns me how much twitter is the backbone of driving sales at albertson's and wal-mart. so i will say that maybe the whiff of attention on twitter is not growing to a stock market's want and needs. but the depth of attention in the platform and the ways to maneuver in it and its ad product, i've been, over the last three to four years, quite critical and not excited about tritter publicly, but i know -- twitter publicly, but i, no question, have seen a resurgence different than the trump effect of just how much attention is in the platform. when you have attention i think you have the ultimate currency. to me, it will be interesting to see what they do with their

o.t.t. i think they should play in that space. i think they were flirting with that a year or two ago. again, i don't know how earnings are done or how much the street values things but i will say depth, maybe not width, is emerging on twitter. emily: the top five companies by market cap are face boorks apple, amazon, google, microsoft. in 2007, just before the financial cry circumstances one of them was a tech -- crisis, tech. them was a >> i think about things in such long term, like the thought of me understanding the short-term economics of 90-day terms and numbers that most of the viewers here play on, and the arbitrary nature and just the fact that we're playing financial engineering, not actually building businesses, in the macro, of course not. we're not going backwards. tech companies will continue to gain momentum. this is where we actually live, not here. and so in the super long term,

no. in the short term, i have no sense if the market has overpriced these companies based on what the numbers that they can hit over the next 90 days, but, like, people aren't going to be watching abc and nbc over netflix. people are not going to be consuming newspapers over facebook. that is only going to -- we're just starting in that world. short-term economics and the way the street likes to play, that's up to all of you guys. but the danger in a five, 10, 15-year mack row, i don't see it. because -- mack row, i don't see it. because -- macro, i don't see it. because technology doesn't care about our feelings or short-term judgment or wall street. it just continues to advance. and humans are engaging deeper and deeper and deeper and will continue to in perpetuity. emily: one of our conversations with gary vaynerchuk. we'll get his thoughts on apple's foray into original content and why he's all in on jeff bezzo next.

and later, we're not done with earnings just yet. tuesday apple's slated to report its third quarter. we'll talk about what to expect from the iphone maker next. noel -- newton -- ♪

emily: apple's first foray into original content wasn't exactly a success. but an act of love hasn't deterred the company. the iphone giant plans to spend more than $4 billion in that creative space by 20 22. an even though gary vaynerchuk was part of that show, he doesn't think failure will keep apple from joining the likes of netflix and hulu who it comes to streaming their own shows and movies. >> i think the sheer amount of

money that i'm hearing they're throwing at it makes me optimistic. i try to spend a good amount of time in hollywood and silicon valley and madison avenue. you get a sense and i think the sense, if you talk to any of your hollywood friends, production and agents, and things of that nature, is everybody understands that it's an amazon, apple, netflix, hulu and who's the next o.t.t., facebook kind of world? that the networks are in deep, deep trouble. even the cable providers and even with mergers, the sheer dollars that these internet companies are going to throw at content, the nfl rights, it's going to be an amazon, google, facebook, apple world in kind of fighting for that. yeah, i would say yes. i think that programming the i.p. is what matters in the end. and when apple, not if, has its breaking bad or orange is the ew black, or nfl, it will suck people in because of the i.p. and the same way that so many more people watch hulu and

amazon than a lot of people thought they would 24 months ago, predicated on one hit. emily: you talk about -- i know you say you're not an expert on short-term market dynamics but we're watching apple and amazon in this race to $1 trillion. amazon coming from behind. in the big picture, do you see more potential in one company or the other? >> in a substantial way. i think the delta between jeff besso and tim cook -- bezz osaka and tim cook as a c.e.o. is unbelievably substantial. i would bet every day of the week on amazon. emily: why? >> because i think jeff has just shown so much more ability to navigate the end consumer's attention which i think is the ultimate value in society. i think that tim, a, is an incredible guy and i like a lot of the things he is trying to push to stand for. but he's been the c.e.o. now seven, eight years. i'm not sure you can help me with this, but ear pods?

i've not seen apple win in voice the way they should have, with the lead they had with siri. the home pod still not out there. we've not seen them win an original program. it's before 24, 36 months that cat's been out of the bag. no hardware innovation outside the ear pods that has any flip of anything. all they've done is slowly just advance things that have been in place prior and so at least the way think about the world, i don't look at the numbers and the ways and the short term and maximizing profit the last 90 days. in the long term what it means for consumers, amazon, through a magnitude of things, has done a far better job of mattering to the end consumer and continues to gain leverage. emily: you mentioned the networks are in trouble. have to ask about cbs which is rrently deciding the fate of -- should he stay or go? >> if he's guilty, he should go.

emily: even after such a long and successful track record? >> doing the wrong thing's always the wrong thing. like you're only as good as your last at-bat or the truth. we now don't look at christopher columbus the same way we used to after we looked carefully at all the things he did. of course. i'm very aware. i love winning in business too. everybody who is watching does. but if you're a human being that's willing to look the other way for money, you're not a good human being. emily: gary has launched a new media men's lifestyle brand focused on the intersection of entrepreneurship and pop culture. you say there's not going to be any walls. there are no walls between editorial and advertising. what's the vision here? >> so 18 months ago i bought purewow.com. i have the holding company. the agency. purewow and 137 p.m. is the publishing side. to me, if you really look at

what the buzzfeeds and the refineries did a half decade ago, they kind of created publishing 2.0 where they started to do creative work for clients instead of just buying commercials on tv networks or in magazines. the branded content world started to emerge and you saw those crazy valuations for a lot of those companies. i think the continued evolution of making content and getting people to see it, that brings the procter & gambles and coca-cola's value, is what's going to happen in publishing. we continue trying to innovate on creating original videos and apps and event marketing. things to help clients sell beer and makeup and deodorant. emily: last question. how are all of these dynamics that we're seeing in social media companies impacting your investment strategy? what is hot right now and what is not? >> a couple ways to look at this. for me, this is just real life. facebook and amazon are the two stocks all in that i believe in

a five to 10-year macro, as long as mark and jeff are running those companies, i'm blindly in belief of how they'll innovate around voice, a.r., you know, machine learning. they just are c.e.o. that's are willing to hurt their short-term economics to do the long-term equity for having legacy over short-term profit. i think the most interesting thing for kind of this audience and your show and what i grew up with in the mid 2000's on web 2.0 and social media is, is there room for a musically or snapchat? where is this next social network? and are people scared to do it because they're scared to be a feature and instagram and facebook, twitter, will copy in and -- it and slow its growth like we saw with snapchat? i'm most fascinated. will there another social network on mobile devices? my assumption is yes, but how. and more importantly, my investment strategy is massively being affected by one core thing. i believe voice devices are the next iphone and the apps built on top of the google home,

amazon, alexa, and apple pod are going to be the place where i come out of retirement and do early stage investing the way did i with twitter, facebook and tumblr. emily: our conversation with gary vaynerchuk. coming up, we wait on one last big tech company to report results. will apple overshadow the trends we've been seeing? we'll discuss next. this is bloomberg. ♪

emily: wealth management offices in manhattan needed a makeover. so the swiss bank has hired a trendy operator of shared offices. they're redesign includes a juice bar, a meditation room and

a lot more greenery. terms of the deal were not disclosed but it is the biggest ver for wework design service. but we're not quite wrapped up with earnings. coming up tuesday, apple. apple will report its third quarter results and investers will looking into any investment into iphones and how the current iphone 10 is doing. our re we're joined by tech correspondent. why is this particular quarter important? >> it's very important because it's the biggest company in the world and it's not the most interesting one. it's not the first full quarter of iphone sales but it's the quarter where we find out sort of when the new iphone is going to be announced. we'll look at the fourth quarter guidance. we're going to see, is it much higher than expected, lower than expected? we might say, hm, maybe the new iphones won't come out until october or november like last year. but if it's higher, that means

we're going to get a few more additional weeks of iphone sales next quarter. so we'll be looking toward some of the higher guidance for that. emily: there's always concern about how the best model, the 10, at this point is doing. but it seems people are now really buying into this idea of a family of iphones and they don't necessarily need to have the best one. quote-unquote. the most recent one. >> right. we're going to learn about that with the average sales price. it was $606 last year. some are projecting $690 this year would be almost a $100 leap. the iphone 10 $10,000, which means it's a very strong contributor to the iphone mix. if it's lower than expected, that could mean maybe apple's selling more of the older phones . so we're going to get a really nice picture of that once we know the revenue and the a.s.p. numbers. emily: you're expecting them to reveal a bigger iphone 10 in the september quarter, right? >> right. the september quarter, three new phones. they're all going to be sort of like the iphone 10 one is going

to look the same. same size, whatever. there's also going to be a cheaper one that looks like that, a little thicker bezzles. face i.d. they might call it the iphone 9. then a high-end phone that will be north of $1,000, probably the most expensive phone on the market, with a giant screen. 6 1/2 inches. a lot of people in asia are going to be -- going to be interested in that model because that's a single device sort of ecosystem. that's going to be a strong seller in the u.s. and internationally. emily: where's the long-term growth going to come from? is it still going tonight iphone sore it going to be services or something else? >> it sounds like it won't be the iphone. analysts are expecting growth from between to% to 5% on an annualized basis for the next five to 10 years which isn't necessarily a bad thing unless the iphone starts dipping down and losing 10% of sales annually. then it's a bad thing. but if it's pretty stag nanlt, that's a good thing. if -- stagnant, that's a good

thing, if they're adding an additional layer on top, services, self-driving car, something in television, that really is a new driver to your growth. emily: what are analysts expecting in the fourth quarter? >> guidance in the $1 billion range. they're expecting two to three weeks of iphone sales in the september quarter which would indicate strong year over year growth. they're expecting 15% to 17% year over year growth for the quarter marx, making it the strongest third quarter for apple since 2015. to overall they're expecting it's going to be a pretty good quarter for apple. emily: we've been following the apple versus amazon march to $1 trillion. i was speaking with gary vaynerchuk earlier who said tim cook is good and all, but jeff bezos is awesome. tim cook's come up with air pods and the apple watch. look at everything jeff bezos is doing. what do you think of that assessment? >> that's an interesting question. tim cook has definitely steered the ship in the right direction. he hasn't taken it off course.

i think if you're anyone, not necessarily only tim cook, succeeding steve jobs, who is known as perhaps the greatest inventor of the last 100, 200 years, since the guy who invented electricity, that's a very difficult act to follow. and i think he could have been very easy to ruin. just because they have so much cash in the bank doesn't mean it's necessarily easy to keep the company, not only afloat, but take it into new areas, grow. it we're talking about extreme amounts of money that other companies aren't reporting. so from that perspective it's pretty good. but i think what gary's talking about, 10, 20 years from now, where's the new innovation and types of categories going to come from, with you haven't seen that from apple to date but we have from amazon. emily: thanks so much for weighing in. internet platforms are set to face tough new content laws in europe. as brussels cracks done on you -- down on hate speech and terrorist messages. companies including google, 2013 and facebook could face huge

fines beginning in september if they fail to take down propaganda and hate speech. germany has already passed laws that threaten social media sites with fines up to $50 million euros for not tackling terrorist content. and that does it for this edition of "bloomberg technology" stavement tuned for full coverage of those apple earnings tuesday followed by tesla wednesday. thanks so much for watching. this is bloomberg. ♪

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