>> welcome to "bloomberg technology." currently sheltering in place in san francisco. tech buoying the markets yet again as the economic fallout continues. this as a new survey predicts that more than half of small businesses will close as a result of the covid-19 pandemic and that the unemployment rate in new york city, for example, will triple. this as california reports its biggest daily jump in new infections, as well as deaths, reporting 2600 new cases of the

coronavirus and almost 100 deaths. this as lyft, pelaton, grub hub and t-mobile report quarterly results. it's a mixed bag. i want to bring in taylor who has been covering the markets today. walk us through the resiliency of tech in general. you saw the s&p and the dow down. but again the nasdaq rising. >> unbelievable. i think a lot of the earnings have come in much better than expected. you're getting the sense that the tech sector here is sort of a defensive sector in this new environment. it's also another day that i've been tracking chinese tech stocks rel toive u.s. tech stocks. they also -- relative to u.s. tech stocks. they also are overperforming. a lot of growth and ot mitchell overseas filtering in through. the s&p tech index is positive for the year, as crazy as that sounds. it is the only index in the s&p. now the only sector that's positive for the year. you're really getting a sense that now big tech is the leadership in this environment.

>> and we've got some quarantine favorites reporting results. pellaton crushing their earnings results. rub hub not so much. let's start with the peloton story. far and away surpassing revenue. and adding tons of new subscribers. >> a stock that's a winner in this environment when we're all stuck at home, it's peloton. they came out and said they just crushed their third quarter revenue. now at 525 million. beating expectations. this is also a company that are he petedly said during the i.p.o. -- recently said in the i.p.o. it would not be profitable. today it looks like covid-19 has really fundamentally changed their income statement. they're now seeing an adjusted, even a profit for the year. they're boosting their revenue guidance. again, they're looking at an adjustment gain of $30 million to $40 million versus of a loss of $100 million. connected fitness subscribers are up 94% year over year.

886,000 connected subscribers. i continue to be impressed by this company said that said they weren't focused on turning a profit and now suddenly they've changed their tune. grubhub, a little bit of a company that might be less relevant to our audience. so i'll just mention something briefly here. a company that boo bep -- benefit from this work at home environment. first quarter slightly ahead of where it was estimated. and also seeing -- they could turn an adjustmented profit here of about $5 million for the year. so starting to get these companies come out with forecasts for the year that could be more positive perhaps than originally expected. >> now, lyft actually spiking, double digits after hours. lyft reporting revenue that was lower but also a loss that wasn't as bad as they themselves had forecasted. this despite ridership diving. lyft is still growing year on year. but certainly not growing as fast as it was. in this quarter, the current bu.

where we wills see the impact of the pandemic. 15%,r: with the stock up you are seeing issuance that ridership is growing this quarter and narrowing the loss on the bottom line. uber and lyft had goals to be profitable, so they are responded to that and going after aggressive cost-cutting is ridership continues to drop. the street was looking at a loss of more than 200 million. interesting here as we take a look at uber. analysts thought lyft would be saidr off whereas uber they were already starting to see revenue declines as early as january. could bet that lyft

somewhat isolated given the big losses. one partner said he has been doing surveys in the ridership has not even bottomed yet. perhaps there is more still yet to come. emily: it's interesting that we are going into a delayed economic fallout. thank you so much for breaking it down with us. i want to bring in an analyst. lyft shares are spiking after hours. they just laid off 17% of the workforce and certainly ridership has been crushed. why are investors so excited? at this point, investors think the worst might be baked into the stock. they were results

pretty phenomenal on a relative basis, and looking at how they were performing right before the reallyc hit, it was were unable toy achieve profitability sooner than most anticipated. when we started looking at the numbers down here in april, it looked like it bottomed in mid april. rides are down 70% year-over-year. now is what kind of recovery are we going to get? this tends to be more bullish than most out there not expect to see some significant cash in q2. announcing is layoffs of 14% of its workforce. , it sounded like

there was more to come there. how do you compare their resiliency tube or given that uber is a much larger company but also much more exposed? >> when we kind of look at first quarter results, i would expect moreresults to show a lot than what we saw in q1. is muchng said, uber better position because of that scale and diversification across different markets as well as the fact they have a lot more they could cut out of the business in time to improve on the margin's side of things. at the end of the day, when you look at these type of downturn in the market, typically, market share leaders come out much better positioned than others, and because of that, we think

uber has capitalized admin taking shares at this time. let's talk about this problem both companies are facing. california sued lyft and uber this week for not complying with a law that states that even contractors are entitled to --tain benefits this is an been sort of a dark cloud looming over both of these companies. have big of a deal is it? >> we think it is a huge deal. this has been a dark cloud that hangs over companies for a long time. of they haved ignored a lot of what was coming

from the government and they may have to pay the price on this. but whether or not this is actually obtained, we will wait this is definitely a dark cloud and something that needs to be addressed. uber andt's talk about them being more exposed. they are planning another investment in another scooter company that is struggling. should they be placing these kind of bets right now when they are in the middle of so much --ertainty as to mark >> uncertainty? >> i actually think this is a great asset for them on their.

but if you look at the balance , they also have access to capital markets. and we see very little risk of this company having long-term issues, to be honest with you. , this is a great time to start making some bets. numbers onee great .his side of things when all is said and done, the diversification of this company will really show and allow this company to navigate the storm very well. so we have no issues on those types of moves in all. >> those lyft shares are still

rising. thank you so much. we will be covering earnings later this week as well. we will also dig into peloton thet-mobile later this hour new coo of t-mobile will be joining us that is coming up, this is bloomberg. ♪ emily: peloton shares are

spiking after reporting revenue up. 64% subscribers jumping amid the pendant -- pandemic. thanks for joining us.

this is a sector you know a bit about. you actually run a company that combines agile equipment with digital coaching. what is your take on the outlook yes, these aret unprecedented times and nobody knows exactly what the new normal will be and what new behaviors will stick? myx fitness, everybody says my fitness, but it is myx fitness. what we saw was just the tip of the iceberg. grow is a lot of room to not just for peloton but players like ourselves. 2018,, one in five americans

belonged to a gym. at subscription numbers that peloton is projecting up to about one million, it is just scratching the surface. the trend is only going to speed up now, it is accelerating. that trend appeals to people who did perhaps not want to go to a gym. it is perhaps a lot larger than people were looking. emily: this is anecdotal, but we had some people saying they were buying pellets on bikes but will return them at they come out of this. worst of all, could that be a big risk factor here? or do you think people will be so hooked that they decide to .eep it

to create good habits but people are going to enjoy that. i see minimal risk of people returning their products, especially a product that has provided access to great coaching and expertise in the home. so again, i don't see that as reasonsk part of the pellets on increased marketing spend is the virus settled in, numbers show they were up millions of the quarter. it's because of the lifetime value of the consumer in the category. we are seeing the engagement is high. leaning in on the marketing makes a lot of sense for them. emily: what does this mean for physical james?

-- gyms? we are in a health crisis. industry part of the just get partially obliterated as a result of this? >> i think it does. i don't know if it is of litter -- if it is obliterated but definitely a falling out of consumers -- of businesses that were not able to meet the needs of consumers in a digital marketplace. it was probably going to happen over the next two years but you will see it shake out much more quickly now. elsewhere.en it these gyms might have to consolidate some of their overhead and bring in order -- murder space. -- mortar space. emily: i am probably more fit

than ever because staying at home has given me time to actually work out using the peloton app. opening -- kind of i eye-opening. how are you evolving to keep up with these new discoveries? >> we were already part of this trend that was happening, but when we launched earlier this year, we immediately had a very positive response to the way we had developed the product and offering. a shortcut way to describe it would be if it was brought into your home, cardio and crosstraining. connection it with a with the coaches and one element of positive coaching that we have weaved into the workouts to

help make this lasting change. bigger than the andetitive set marketplace the feedback we have gotten was initially very positive. now with what is happening in positioning is slightly more nurturing and our adjustment market has grown. peloton is doing a great job but i have had a number of people reach out and say there is something about the marketing 2020seems so february versus what they are doing. emily: great to have your perspective, thanks so much for joining us. up, sales surgeon in the

covid era. we talk to them about what's behind the numbers, next.

emily: gm reported better than expected results boosted by a 27% surgeon pickup truck sales. --spoke to their ceo earlier sales.n pickup truck david weston spoke to their cfo about these results. we are well positioned on car lines and you know we came out

of the strike last year. we have had lower cleaner inventories, and frankly, it's just good to be helpful in a scenario where this locally. and from a pickup perspective, we find the situation where we and haver inventories become very experienced managing the constraints we are seeing in the product and how to dig deep says we thinkales about plans to return to work, it should help us address a shortfall from an inventory standpoint. announced it had taken money from some revolving credit line. amassing something like $33 billion in audio -- an

auto liquidity looking forward, what tells you you're going to need that money? said we wantways to run a very strong investment-grade balance sheet. that has come in handy during ,hese times and as you quoted we ended the quarter with a strong liquidity position. but it's difficult to anticipate what will happen. steps tore taking protect ourselves whether it is austerity, or like you mentioned , a revolver spending and chair as apurchases precautionary measure to make sure we have additional letters of liquidity. we are comfortable with our position now they'll take us into q4. obviously, when we have a

restart, our liquidity levels i would say these are precautionary and proactive actions to make sure we have additional liquidity buffers in place. what we are focused on now is safely restarting the plans and getting production up and running. >> this comes along at a time when the industry is undergoing a transformation. are you changing your investment plan on that? do you have to put that to the side while you deal with the pandemic? >> absolutely not. we are marching ahead in our plans and are committed to an all-electric future. all of the plans we have , we feel little to no

.mpact on any of these the capital actions will not impact the programs that you just outlined. the balance sheet you have been maintaining in financial flexibility allows ing even in this challenging time. the increased pace of new vehicles, is that going to slow down? >> we are committed to putting out products that our customers are excited about and that is not going to change. we do put the customer at the center of everything we do and you can see that continuing in the product cadence that will come along. emily: gm cfo with our own david weston. coming up, there has been a big

debate in silicon valley on who should be taking ppe loans from the government and who should not. we talked to one recipient coming up. this is bloomberg. ♪

emily: welcome back to bloomberg technology. the trump administration has extended the deadline for companies to return their money from the paycheck protection 14.ram or ppp, to may there has been some controversy about whether that money has reached businesses that needed most. joining us from work, phil libin. he is also the former ceo of evernote. always good to have you here on the show. talk to us about the process. how much money did you receive? what was the process like?

why did you feel like you needed it? phil: nice to be with you. hurriedess was kind of and uncoordinated like everything else at the last minute, but it worked out. we were able to get the funding. we got about $830,000 from it. it worked well. we are using it for exactly the purpose it was intended. i'm trying hard to not lay anyone off. i announced at the beginning of the crisis i am optimizing for not having to furlough anyone. this definitely lets us do that. i feel pretty good about it. it was chaotic -- emily: because of this money, you will not have to do layoffs or furlough anyone? phil: that depends very much on how long the crisis continues. we think we are in deep -- any decent shape. we would have had to without it.

with it, we do not. if this goes on a couple of years, maybe not. at least now, we are in decent shape. emily: there has been a lot of debate on who has received this funding. shake shack for example returned their ppp money. venturealked to capitalists who said that venture startups should not applying for this money because they obviously have sources of funding elsewhere. you have been a venture capitalist. i am sure you have some thoughts on this. why do you think a company like all turtles should have this money rather than a laundromat or a restaurant that might not cap siliconlity to valley cash? phil: hopefully it is not us versus somebody else. it is not that complicated. the program was put in place for specific reasons. it is meant for companies that

do not have ready access to other capital so they can keep people on payroll. if you meet those two criteria, there is not a ready source of u -- source of capital and you needed to keep from lynn peeples off -- from laying people off, then it makes sense. we are all expecting that by the time we come out of the pandemic crisis, there will be this wave of innovation in the new world should be better than the old world. that is going to take a lot of innovation. that innovation is going to come from startups. if startups are excluded, what that is going to do is it is going to force people who would work at startups to have to go in try to get jobs at bigger companies. that is going to result in a worse world. i am sure there are plenty of companies who got it who should not have got it. if you are using it to pay people's salaries and you would

have had to lay people off before, that is what it is intended for. emily: all right. all turtles builds ai products. what does the pandemic and the titanic hit to the economy mean for your company and what you are developing? struck overreally the past few weeks of being in i recognized the repeated repetition of how non-essential i was. i think me and most of the people i know are by definition, non-essential to the crisis. that felt weird. i guess i have non-essential. i'm used too thinking of myself as vaguely important. it came as a surprise. of decided to do what that by saying, we are not a central to the immediate -- we are not essential to the immediate dealing of the crisis, how do we become essential to gluing the world back together?

how do we ensure everything we are working on is going to be the new essential? for helping things to come back and making sure the post covid world is better than the pre-covid world. all of the projects we are working on, even before this, our projects were about the future of health. we are all in on that. everything we are working on is something i believe makes the recovery better and makes the world better. ofm trying to get as many the companies and founders in my network and my portfolio to think along similar lines. emily: having rocket evernote, i am sure you have thought a lot about productivity and how this changes how we work and the return to work. what does that look like as we come out of this not knowing how long it is going to take before we do? phil: that has been really fascinating. i am living and working completely online as a lot of

people are. for me, for the kinds of work we do, that has been pretty productive, which is surprising to me. to have the kind of -- we are lucky to have the kind of work you can do remotely. i just announced to the company we are not coming back to the office until september at the earliest. we wanted to give our employees some certainty. if they wanted to make plans for where to spend the next couple of months, we wanted them to know they are not going to get called back in in a few weeks. we are going to see after that. then it is a fair question. what we want to do over the next couple of months when things are opening back up but the pandemic is still a worry? what to we went to do 18 months from now -- what do we want to do 18 months from now? how do we want to act? we are figuring that out. we are surveying our employees.

we are working on a couple of products that are meant for making remote work more productive. it is giving me a bunch of ideas. hopefully, we will come out of this -- the goal is to come out a better world than we were when we went into it. we want to play at least a small part of that. emily: will be watching for those products. , ceo of all turtles. thank you for sharing your thoughts. coming up, see -- coming up, t-mobile's new ceo, michael sievert. we will have the interview coming up. this is bloomberg. ♪

emily: it is an earnings first for t-mobile. first, results amidst a pandemic . first results since the 26.5 billion dollar takeover of sprint. first results since former ceo john legere stepped down. joining me to discuss their latest round of earnings, new ceo mike sievert is joining us now. you beat on profits, but you said the pandemic is complicating forecasts. give us the headlines takeaways. mike: thanks for having me on. it was an incredible q1. we were firing on all cylinders in january and february. like everybody, march changed things for us. in the quarter, 8.7 billion dollars in service revenues. up over 5%, which is more than twice the growth rate of our next competitor of at&t and

verizon. really firing on all cylinders in revenue growth. an all-time record, 3.7 billion, up 12%. coming into the merger on april 1 with strength. that has helped us a lot because now, five weeks into the merger, we are filled with optimism about the potential ahead while simultaneously dealing with near-term issues regarding covid. criticalmobile is a part of the infrastructure and keeping us all connected as we are working from home and quarantined. how much additional demand has this put on the network and what kind of activity and trends are you seeing in use? mike: i am a ship -- i am so proud of our network team. it is up across the board. we have seen a big increase in suburban areas for obvious reasons. videoconferencing more than doubled. picture messaging more than doubled. gaming more than doubled. all through it, our network is

performing incredibly well. all while expanding usage by giving millions and millions of sprint customers roaming access right here during this crisis. really proud of her team is working through the -- of how our team is working through the pandemic issues while building for the future. i can tell you that as it relates to building for the future, if anything, we are ahead of. schedule we are filled with optimism that perhaps these synergies will come sooner and be bigger than we had planned. emily: t-mobile did such a good job picking up new subscribers. that made it harder for sprint. that means sprint is a drag on your finances and subscribers. as you work to integrate that, how do you mitigate sprint's not so great balance sheet? mike: you are right in that we have combined a rapidly growing company with a company that has not been growing. you will see that will have an

effect on our forecast. we guided today we will grow between zero and 150,000. that is not the kind of number t-mobile has posted in the past. that is mostly due to the covid pandemic and not this combination. what we have to do is deliver the value proposition of this company. this new company will be all about value. consumers will be looking at value more than ever. we will not make people trade-off adding a great network. perhaps the best network in history. that is going to appeal to sprint customers who have historically turned at the highest rates of the industry. if we can get more from at&t and verizon while addressing the turn rate at sprint, that is going to result in growth. we are a growth company. emily: as you can see from your shot, t-mobile loves pink. or as i should say, magenta.

you have some big magenta shoes to fill with the departure of john legere who has also left the board. there is nothing like taking over for the ceo as -- the ceo in a pandemic. what do you see as your biggest bet on the board going through an uncertain time and a devastating economic recession? mike: as i said, thank you. we all miss john. it is difficult to step in shoes any day but typically during a pandemic like this. our team is doing incredible work. the opportunity is to become number one in customer choice and number one most loved by customers. we can do it because we have the best value in the industry, the lowest prices and we are going to have the world's best 5g network. you know our 319 megahertz of

spectrum is almost triple what verizon has? it is almost double what at&t. has we have resources to back up the dna of this team that has always loved customers and taken better care of them. now, we have the scale to bring a level of competition they have never seen before. we cannot wait to get at it. emily: ok, but they are very few phones that are 5g enabled. how do you get more 5g phones into people's hands and make that actually matter? are eight. this is going to be a big year for that. the big mainstream players will have compatibility as we get through this year. to give people a better value and network, that is not require 5g. we can do that on the lte front as well. sprint up roaming for the poster -- for sprint customers during this pandemic.

we have the ability to provide the only provider with the entire layered cake of five should -- of 5g spectrum shade made in low band where we have nearly triple the amount of verizon. we can create an experience for customers at wo -- for customers our competitors cannot match. expect toly hope and see that starting this year. emily: all right. sievert.ceo mike looking forward to making this a regular occurrence. hit byup, silicon valley layoff after layoff. first, airbnb and now uber. we will have more coming up with silicon valley veteran ann

mirua-ko of floodgate. ♪

emily: airbnb, uber, lyft shared household names that are laying off large chunks of their workforces. many more layoffs are to come? i asked that question of the cofounding partner of floodgate. ann: there are a lot of views that are to come out. we have dealt with a health crisis first and foremost. now we are going into this moment where there is a massive reset that is happening on the economic side but also from a personal side. on one hand, there is going to

be an element of this, which is very difficult from a macroeconomic standpoint. there are some really interesting opportunities that get created as a result. one of the things we have been is,king about at floodgate where are the massive reset that have happened as a result of the covid inflection point we have seen within the economy, within the country, within the world? emily: how long does the economic reset last? how long do we feel the economic pain? ann: that is the piece that is hard to know. this kind of reset, we have never seen before. from that, you see pain and opportunity. how do you communicate but who do you communicate with? we have seen the shift to kick -- shift to you communication.

-- to video comedic asian. you're also seeing retail -- video communication shade were also seeing people buying from different stores. that gives you opportunity to people. if you see within the last few months, we have seen the opportunity. we have seen people adopting new brands and new categories that we have never seen before. there is both that pain element which could last, we are seeing 18, 24 months at least. and then, there is the opportunity of new categories in born, which is what excites me about the next economy. emily: airbnb is laying off 20% of their workforce. over laying off 14%. t is laying off 17%. many more layoffs to thing we are going to see given this delayed impact of the economic issues? ann: i think across the board

what we are seeing is whether it is in tech or other industries, that impact will continue to rollout. some of these businesses have decided to be more aggressive in the early days to try to get control of the expenses they are seeing. justu look at airbnb, react to the revenue hit they have taken. i think that part of the economy in terms of the job cycle, we are going to see a huge impact. one of the numbers i was talking to a friend about was the fact that people under the age of 45, there is something like over 50% of those people have either been laid off, lost a job or are working less hours than they did before. that kind of economic impact, you think about the fact that

of young people was decreasing over time even when we are looking at 2019, causing people to push out life milestones. having kids, owning a house. you look at that economic number around unemployment. that impact will have staggering effects. emily: what are those effects? ann: there are the changes we see, which there are certain types of businesses that were already struggling under thin the high cost of real estate as an example that economicsd their own to become even slimmer over time. i think that is going to be tough. what weird counting on -- what we are counting on and i think from the tech sector, is there a way to keep -- a way to create

more abundance? empower the entrepreneurs to have an ironman student? to go out and build their own businesses? that is what we are going to see out of the destruction. these opportunities to create real entrepreneurship's. emily: how are you advising your portfolio companies and how are you advising entrepreneurs? ann: one other things we talk about is, how do you become anti-fragile as a company? being anti-fragile means not being dependent on your investors. the longer-term you are able to have in terms of your cash supply, we are not talking about how much dollars you have but how much time you have because we believe that outlasting your competitors is going to be even more important than outspending them in this new cycle. emily: diversity i know is an

important issue for you and it is something silicon valley has been working on. we are in the middle of this crisis. i worry that progress will be lost. do you have concerns we could lose some of the progress we have made in diversity and investing in women given we are in the middle of a crisis? ann: i absolutely am concerned about that. this is a place where, especially the group i am involved with, we have our eyes on exactly what happens through this crisis. it is not just about female investors. we want to make sure the executives and the individual contributors who are now part of the technique ecosystem, that they are not impacted in a way that we retract from the progress we have made. i think this is the time and place to continue to invest into these issues and continue to invest into the talent we already have. backtrack we do not from the progress we have made.

emily: last question, where do you see a floodgate opportunity? ann: going back to this idea of preneur, some people talk about it as being a passion economy. i think of it as being a larger trend or individuals believe they need to count on themselves in order to have the job they want or to be able to fill how they want to balance their work with their own lives. we believe that there are businesses to be built to preneursthese solo either from a financial standpoint -- from a financial standpoint to compete with these larger companies. emily: continuing to look at these headlines rolling in about peloton's result, the cfo saying they see significant expansion in the midst of the covid-19

pandemic. peloton shares soaring along with lyft, which reported a narrower loss than estimated. we will continue to cover all of this. bloomberg daybreak australia is next.

haidi: a very good morning. i am haidi stroud-watts in sydney alongside shery ahn in new york. u.s. stocks fall for the first time in three days amid mixed earnings and worsening and economic data. american companies cut a record 20 million jobs last month. oil snaps a five day rally. futures slipping after doubling in value from a week ago. coronavirus