♪ emily: i and emily chang in san francisco. and this is "bloomberg technology." response toump twitter and facebook about blocking access to a new york post article about joe biden. plus, to go public or to not go public.

long time venture capitalist bill gurley joins us to talk about the path forward for tech startups and a new normal. committee by a tommy -- autonomy, we will hear from an exclusive interview coming up. are hearingtocks losses today as a fresh round of stimulus has been affecting the stocks. let's bring in abigail doolittle. this has also touched the biden campaign and senator kamala harris and a couple of her aides. how does this impact today? abigail: there were so much movement. on the open, you had all of the major averages down. this has to do with the resurgence of the virus in europe. i would argue that that was the

main bearish factor for the day. as trading went on, the cooler heads prevail. the s&p 500 is a little bit down. there is a greater than 1% loss. that index is more domestically oriented, so that would support the idea that there were fears around the european virus cases. the bloomberg commodity index, a big piece of that copper, a big piece of the economy. some investors are more optimistic about some sort of a reopening or a cyclical trade. however, where we we did not see any kind of risk action with the nasdaq 100 down, down at the open, and down at the close, investors are not wanting big tech. some drag was biotech, for of the leaders and the laggers,

and the index is down three days in a row. however, it is on pace for another week, being helped out by apple. zoom is way taking off after yesterday's investor day. traders and analysts really liking it. -- day, islaggard on the with its worst day since 2003, after they discontinued liver and treatment that was expected to drive a new leg of growth for the company. you can see those shares getting punished. some of the other big biotech companies were down. 2.7%. is down .7% -- they have cut the price on the model s twice this week.

we see folks take chips off the table, and in some ways, it makes sense. emily: thank you, bloomberg's abigail doolittle. since you mentioned zoom, we will speak with the cfo of zoom on the back of investor day. turning out to twitter and facebook, said republicans are demanding to meet with the ceos of platforms after restrictions were put on the slowing of the spread of a new york post oracle about joe biden and his son. the president is tweeting about this, saying that if big tech persists in coordination with mustainstream media, we

immediately strip them of their protections. when government granted these productions, they created a monster. tell us the latest. ben: i think what we are looking at is demands for mark zuckerberg to address the senate judiciary committee. what is particularly interesting, is that they are supposed to address the senate committee, and this could be another hearing coming up in just the next two and a half weeks. talk to us about the results of this on the companies themselves. the companies saying that they did not do this, and that this article conflicts with policies about hacked materials wrote hack and leak.

where materials could be released to damage another campaign. talk to us about the impacts on the companies themselves. ben: this has been a really long running battle, kier ndc. dc.particularly here in moree the companies to do of what they considered taking down political misinformation. republicans increasingly are saying that you are taking down our stuff and censoring conservative views and conservative opinions. this seems to be coming to a pinnacle here, where they are saying that they are caught between a rock and a hard place. very will be in power here in washington, and companies are saying what would we do if we do not take down this? and what will republicans do if we do take it down?

this is a real catch 22. year, they would have to live with the fallout from the election. emily: let's talk about what is happening on the section 230 front. i just spoke with the chair of the sec, and he was not to forthcoming about the sec plans. whohave commissioners disagree that this is in the purview. how do you expect for this to play out? ben: there would be an advancing making. -- rule this is a bit of a sprint. he does not have the votes right now. one of the republican commissioners said that he does

not see this happening. president trump is trying to replace that commissioner. they would have to do that very swiftly. they are kind of racing the clocks if come to power. if president trump gets another term, it is not so much of a problem. it seems like that is actually moving forward, even as you have these efforts in congress. earlier this week, did one of the conservative justices on the supreme court that says this is too broad, and he wants to revise about 25 years of jurisdiction. emily: much to keep watching. acute so much for giving us that update. up, ipos are hitting the market faster than ever in recent history. we are talking to bill gurley of benchmark to see what his

excitations are for 2020. this is bloomberg. ♪

are running hot this year as investors build a new appetite for opportunities. there have been 309 ipos on the 75%et, and that is almost more than the same time last year. many expected it to be different during the pandemic. longtime venture capitalist bill gurley has been a vocal proponent, and he joins us now.

it is good to have you back on the show. you have been out there a long time and saying that companies need to go public sooner. we see companies charging out of the gate. when you look at how they are going out of the gate, are you seeing them do it the right way or not? with snowflake going public, there was doubling on the first day of trading. is that a victory or troubling? any trader who is successful in their ipo is in a mindset of achieving. they are not in the mindset of, oh did i just make a mistake? public, if of going people took the time to understand how it works, is to using a paper

map to going on a drive today. there is such a more elegant approach. because of conflict of interest and the money involved, a lot of people want the broken prices to exist and continue. unfortunately, it is getting worse. last year, and the year before, there was about 600 billion dollars in underpricing. $4.5lake alone was billion. that is just one company. people had $4.5 billion of wealth that they did not have the day before. we have a wonderful new age alternative called the direct listing that just matches supply and japan. that's how -- matches supply and

demand. it is night and day. a paper map compared to using waze. emily: i know that you are considering alternative facts and direct listing. some investors have been disappointed in palantir's direct listing. how should companies be considering this? bill: i am a firm believer that once you're out in public, how you got there does not have a lingering effect on the company. i can give you a list of companies, amazon, square, salesforce, netflix, peloton, guess well of those have in common? they traded below there ipo price. in the long run, and how you perform as a public company is all about your long-term cash flow generation and how you do

in your market. it is not about how you went out. is anot by that there legacy for how you went out the door. that they wentlt out? toly: does that apply airbnb? it arguably waited too long to go public. nobody knew that pandemic would happen. but that potentially impacted their fortune in the near term. they are getting out of the gate, and we reported that it is happening in december, postelection. do they miss a window if they do it that way? waiting so long, overall? bill: from what i've heard, and this is just rumor mill, they are going to do a traditional ipo. i think when they pulled back and covid hit them hard at

first, the took on a bunch of debt. and think they want to raise capital. are working with the sec to make that happen. i think that they are going to go the traditional route. much have they lost by waiting this long overall? there is an argument that could be made that they could have done this years ago. there is a small set of people that happened to be people that i highly respect, and in the public side, it is and marc martin benioff and reed hastings. searches, youle will see that they all say the same thing that i am saying. properties are too afraid to go public. there are massive benefits to being first in category and being public and having control

of the narrative with the buy side. there is a long walk post written on the subject, that there were voices in silicon valley about five or 10 years ago that are mostly raising late stage funds and were wanting to pick off investments before they got public. equated thes analogy of football. if there were some college the topack that was in 50 listings of the draft and held a press conference, and he said i do not think i'm going to go in the nfl yet because i'm afraid of scrutiny. they tracked every stat and i do not will to be that short-term oriented. if someone did that, they would fall immediately. but that is some of the behavior of the founders and so can value that -- founders in silicon

valley. once you start giving stock to your employees, you are in the game. you need to maximize your values. if you do not want to keep raising your game, at sell your company or higher a.c.l. that is. that is my point of view. of hiring a ceo, you are obviously one of the early investors in uber. do you think about his vision as a leader, by spinning off self driving a subsidiary, it is not rely on uber funding, is it it reliant with -- aligns with uber's goals? bill: their decision to be more diversified but from a geography standpoint by being global, and with the eats business place them in a place where they have

a lot more going for them rather than being in a single category. i think that the place that they are in right now, there are a lot of investors that have interest, and they see possibilities for the stock moving higher. they want the company to prove that they can get to cash flow positive. the company has talked about that, and they have set future goals for that. when they achieve that, that is when you will see the real value on log. -- the real value unlock. only: uber is relying california lawmakers to decide if uber employees should be freelancers or under the company's coverage. what could be the impact on the company's future prospect? bill: to the extent that uber commitmentld to the

of not operating here in california, i think that will be acrossetty profoundly the community. we spent so many years of car ownership, and the road would be better off if we lived in denser cities and had less car ownership. this is a patzer guess there. -- this is a path to get us there. have committede to being a new drivers and the lowest unemployment in a lifetime. gotteneople could have -- could have gone to a mcdonald's or starbucks, and no -- no one forced them to be an uber driver. you have untold flexibility in

going to work. lawne is trying to pass a that says you can show up to where -- to work whenever you want. that flexibility is an important right. nobody is saying that. this flexibility benefit is super helpful to people that are in different stages of life, trying to cap debt, or put themselves through school, or be our work from home parent. everyone canne understand because i think this could be unprecedented is that the error tour aboard -- that the editorial board has come out -- ab5 ishat the 85 b.s. the reason is that the lineage unions thing is that

leans on the sacramento legislator to write a law targeting an industry that they do not even represent. it would be like nevada passing a law the impacts california residents. said, if you hate citizens united, and you don't think that corporations should write legislation in d.c., you should hate ab5. it was written by political donors. emily: there are so many questions about the impact on silicon valley long-term. what do you think the most dramatic changes will be in silicon valley in a new normal? what is different about this? bill: i think it is super hard to predict. right now, i think that there are pretty dynamic things happening.

aople struggled with building large engineering teams here anyway, because it was so competitive and extensive. overnight, when you need a marginal higher, every company is going, well maybe that person could be remote. everybody else's. startupsw backing without offices. we had not done that before. we do early stage investing. we back employees with five to - employees, and they are a lot of times you are not thinking about there being in office. far ends people on the of this, like with zillow and dropbox that they are trying to emote the most. and other founders are saying

that they need to be in the office. i hate to answer a question with uncertainty, but i do not think that we know how this will play out. emily: there is a big question about the future of big tech are now. talking about regulation earlier, we were talking about could pave its way to a big tech breakup -- amazon,,hat apple, facebook are a big threat to a breakup? i have about two minutes left. bill: one thing that i think is inaccurate is that i actually think that the government restricting microsoft's ability to leverage their way through the browser, open the door for facebook, google, amazon, if they had been able to tie the

browser to search, the way that they went after netscape aggressively, i think that they would have succeeded. they really care that stuff. the governmentat created the window for many of these companies. i am torn from that point of view. back smallerhat we companies, and having them thesect with us -- with companies, you feel the power. it is my way or the highway. is an argument for breakup? -- is that an argument for breakup? bill: the government going after ibm page the way for microsoft. way for microsoft.

pointhink that there is a at which the leverage becomes so large, like this 30% thing that they are forcing arbitrarily on certain industries, that you have got to ask the questions. maybe the pressure causes the behavior to change. i do not know if you have to take it to the extreme of breakup. but i do know that you have to pay to jim. emily: all right. from you, bill gurley benchmark capital partners. think you so much for stopping by. coming up zoom has hit a new record. get the latest from the company's cfo next. this is bloomberg. ♪ are you frustrated with your weight and health?

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now it's your turn to lose weight, look great, and be healthy. get off the floor and get on the aerotrainer. go to aerotrainer.com, that's a-e-r-o-trainer.com. ♪ emily: this is bloomberg technology. i'm emily chang in san francisco. zoom is rolling out end to end --ruption -- end to end come while generally be available for free and paid users next week. zoom has been a prominent and efficient area of the coronavirus disruption to normal life, which has forced millions of us to work, study and socialize from home. we are joined by zoom's cfo. you are wrapping up your resumet -- your z

oomtopia event. i want to start with this end to end encryption. how will this change my experience? encryptionnced our will be available next week. it is going to be available for boast free and -- for both free and paid users. what this means is users on the zoom client will have a higher level of security and privacy at their meetings and that the encryption keys will be generated by the participants' machines themselves. it will be a really high level of security that will be combined with the reliability and the scalability and quality platform.d our emily: now that we have stabilized in pandemic mode with some people going back to work and many of us at home for the

foreseeable future, what is your outlook on growth? do you see demand still accelerating and if so, how much? >> we have had a really amazing experience over the last six months. seen is growth in this cohort of customers with fewer than 10 employees. if you look at our results from q4 in fy 20, that represented 20% of our revenue. in our last quarter, it was up to 36%. that is tremendous growth. this is an expansion of a cohort that historically before the pandemic we had been focused on our upmarket customers. now we are focusing on these customers. with that, excited that we zoom,ced yesterday our on which is a one-stop location for small businesses and consumers to come together to host events.

we have all seen this. i am sure this is happening in your household whether i things like cano lessons and yoga lessons. -- things like piano lessons and yoga lessons. we are trying to streamline the business for small business owners and their consumers to come together on zoom. really excited to announce this and see where it goes. we have been looking forward -- this is going to continue to be a really important part of our long-term strategy. in the upmarket, what we have seen is companies have continued to buy. they have expanded into thinking about for the long term, how are they going to bring their employees together in a safe and efficient way? another announcement i loved from yesterday was our smart gallery. this is part of our resume room -- our zoom room solution. we have all had an experience

over the last six month in working together in this environment that there is a democratization of communication. everyone'st on zoom, square is the same size. when you think about companies wanting to go back and some are in the office and some are at home, how do you keep that benefit we have achieved? not have somebody who is working from home and everybody else in the office looking at the back of someone's head. this is going to enable us to have the appearance we are still all on screen together. this: you unveiled solution for folks who want to host and monetize events. i know you said it is not initially material to revenue, but what about the mid to long-term potential in terms of having a platform that can offer experiences? how much revenue do you expect this to drive in the future? >> we are at early strategist

that early stages, but what we are excited to do is learn what is important to our hosts and see how they and their customers come together to leverage this platform. initially, really focus on the small businesses. i think in the future, we are going to start to see larger enterprises. i think there is a lot of potential. we are in super early days of the cycle. emily: obviously you have got zap, allowing others to embed their apps on to the platform. -- ceo excuse me, talked about the importance of cooperation. it comes to microsoft and ring central who are competing for your customers, what is the line between competition and collaboration? >> everything we do at zoom is focused on the bring happiness to customers. we believe that means --

sometimes we early cooperate and work closely with companies to ensure our customers get this approach and that we come together and work seamlessly. a great example is our api integration. on the other side of this, there is competition. believe competition makes us all better and is good for the consumer. we do not take it for granted. we are paranoid about our competitors and that drives us every day to be at the forefront of development and thinking about what we can do to support our customers. about -- eric did talk about that there are times when customers want to use other platforms like microsoft and we provide an integration so our customers can use the products they love and come together with zoom for video communications and our phone application, which is the key components over platform. emily: i know the team has been

working hard to improve the security features and shake off the early zoom bombing issue rep reputation. do you think the company has done enough to prevent disruptions like this and if not, what else do you think the company can do? lot duringlearned a the last six months. security and privacy is now front and center and embedded into everything we do. i often get asked, are we done? we are never done should it is part of every design, every product we put forward, we think about this. it is ongoing. it takes diligence. it takes commitment. it is a combination of education, helping our users know how to use our platform,

how to best equip them with things like features and functionality that allow them to keep their meetings secure and safe. one of my favorite ones is our privacy field. it is also helping educate them about the best way to communicate with attendees at meetings. not for example publishing meeting credentials publicly that makes them accessible to anyone. toare also working with aie ensure that when we do see situations where eating conventional's are publicly available, -- where meeting can vent -- meeting -- meeting credentials are publicly available. we are taking this seriously and we are spending a lot of time as a company thinking about how to keep our users and meeting participants secure. cfo of bloomberg. thanks as always for stepping by. still ahead, general motors

taking to the streets of san francisco. now permitted to test five driverless cars in the city without safety drivers. an exclusive conversation next. this is bloomberg. ♪

♪ emily: full speed ahead for cruise. joininga safety driver amazon back to souks. a select group of other

self-driving cars. joining us is dan. he has them raise $7.25 billion in committed capital, attracting the likes of softbank and honda. good to have you back on the show. you're going to test fully driverless cars. five cars. how hopeful are you about expanding and growing the testing in san francisco? dan: we are incredibly excited to have reached this milestone. it represents the culmination of years of work by thousands of people. it is awesome, but it is really just the beginning of what comes next. what we are focused on overall is ultimately making a really big positive impact on transportation. deployhat, we need to this technology and these vehicles at a large scale. we are going to step into that in a very responsible way and

gradually increase our capabilities and make sure we are building trust in the technology as we do that. emily: the big development here is no safety drivers. what are the safety mechanisms to avoid accidents. ? i am a san francisco resident. should i be worried about these cars? dan: safety is the number one priority. that is the first book is we have and the focus in everything that we do. we have more than 2 million miles of testing we have been doing in the city with backup drivers. the 10 knology has developed to the point where we -- the technology has developed to the point where we believe we are ready to take the next steps and take the next step and deploy without somebody behind the wheel. we have extensive safety protocols in place on top of all of the testing we have done.

our goal is to build trust in this technology and to step into it in a very responsible way. suggestedn musk has that autonomous start ups like arese, that your cars better suited to small, specialized situations, geo fenced locations and not for traveling widely. what is your response to that? dan: our focus is to solve the problem of transportation where it is most acute and where the real transportation crisis is and that is in our cities. that is why we have chosen to develop our technology, to work in a very complex environment like san francisco so that we can solve the problems of transportation where they are most serious. emily: so will we see you test the commercial service outside of california? dan: for sure, our goal is to deploy this technology very

scared -- very large-scale and solve the problems of transportation not just in california but across the world. everywhere you look, transportation today is too dangerous, time-consuming and expensive. we believe they can make a huge positive impact on all of those and give us time back and make travel safer and more accessible for everybody. emily: so what will be your first foray into commercial driverless cars? could it be autonomous food delivery? dan: we see a lot of different opportunities. i think the two most obvious ones are moving people. servicess ride health and delivery of goods are another huge packet of opportunity. we expect to pursue both of those in the not-too-distant future. emily: what about driverless freight?

is that something that is on your radar? has once the technology matured and is being proven to be effective at large-scale, there is a host of opportunities. anything that is on the road and is getting driven today conventionally is an opportunity for us. emily: talking about the economics of an autonomous shuttle, you have this permit from the california permit commission, but you cannot charge a fair. should they let you -- charge a fare? . today let you? dan: that will be an important step along the way. importantly, one of the things we do believe we will be able to do is provide transportation to people at a much lower cost than the other alternatives they have today. today, people can take a cab or

they could take a rideshare were drive themselves, but there are a lot of people who do not have the ability to take transportation, do not have access to public transit. our goal is to make transportation super affordable and accessible for everybody and we think that is one of the unique opportunities that self-driving technology can bring to our cities. emily: how do you see the economics for an autonomous shuttle actually adding up for cruise? dan: we know today how much people pay to get around. we know what people pay to take a cab or a rideshare or what they pay to own and operate their own car. our goal is to be able to deliver a service that is more convenient, safer and at a much lower cost than the other alternatives. we know where our costs need to be to do that and we are working very hard to get to that level. one of the big advantages we

have is the cruise origin, which is our purpose built self-driving vehicle, which is in advanced element. inshowed that to everybody january. one of the reasons we decided that was the way to go, to develop a person -- a purpose beat -- a purpose built vehicle is it gives us a much better vehicle and better experience for the customer, but it gives is a huge cost advantage and allows us to offer transportation to folks at much lower price levels. emily: we will be watching as these hit the road. thank you so much, dan for joining us. still ahead, despite the covid-19 induced recession, hewlett-packard's enterprise looke outlook. we are going to speak to the ca out next. another exclusive conversation coming up -- to the ceo next.

another exclusive conversation coming up.

♪ hewlett-packard enterprise announced a rosy outlook for fiscal year 2021 in its virtual securities analyst meeting today. the pandemic has been a catalyst for the company to accelerate its services to help other companies in their digital transformation. , the ceo of hp. what is behind the rosy outlook? antonio: good afternoon. thanks for having me today. i think we laid out a very compelling case for investing in hewlett-packard enterprise because we believe having a unique opportunity to help customers transform through the technologies we saw. covid has been a catalyst to maturation.

strategy buter a it is a strategy. vision tounique deliver hp cloud as a service. we have a unique set of services for customers. thatis why we see growth over the next three years is going to shift the mix of revenue and margins with expansion. emily: on the other hand, the pandemic has ushered in a recession, which means a lot of people and companies are hurting. how is that impacted demand? antonio: early on this year and throughout the summer, there has been an impact on demand and a significant disruption to the supply chain. i think our company has done a remarkable job to cover the supply chain execution. studied at the end of q3,

we reduced our backlog and we have incredible confidence as we exit this quarter, which is in a couple weeks. the demand is steady. we see strong demand [indiscernible] connectivity and return to work solutions. great aspect of our offering. in a large enterprise. within 5 -- more than 45% of people are working from home. the ability to connect the micro branches, which are your home to the cloud, is a necessity. we have a perfect solution for that. we just completed [indiscernible] and then you need to process this data.

those [indiscernible] performance and the ability to consume as you go. that is where -- [indiscernible] emily: ok. sales often weaken in an economic slump. curious if you think server sales will pick up without an economic recovery. antonio: we believe as we go forward, the recovery on demand will be there. driven by the fact that we will continue [indiscernible] solutions like hyper converge will desegregate the hyper converge. it is based on a server. demand on2021 to see

the computer side and also on the high performance computer. top [indiscernible] we are very confident about that and our ability to execute. emily: hp servers are used by many governments and we are approaching a very contentious residential election. hp hp doing any work -- is doing any work to secure these environments? antonio: i am glad you asked because just last week, we produced the most secure server on the planet. these servers are made in the united states. our secure supply chain let's you differentiate. that is where our servers are used not just in the public sector but in the financial

sector and health care. we have another point of differentiation. emily: you have also been recording more revenue from subscription services. what evidence are you seeing that customers are more likely to get new hardware under a subscription model versus otherwise? antonio: customers want the cloud experience with the flexibility and control of the solution. what we see is [indiscernible] where data has gravitated. they still what to containment as a service. -- want to consume it as a service. we haveannounced today a large deal [indiscernible] we expect the market to grow. antonio neri, ceo of hp.

thank you for joining us today. that does it for this edition of bloomberg technology. i'm emily chang in san francisco. bloomberg daybreak australia coming up next. this is bloomberg. ♪ so you're a small business,

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♪ haidi: good morning and welcome to daybreak australia. we are counting down to asia's major market open. shery: good evening from bloomberg's world headquarters in new york. lossesu.s. markets pay amid hopes of a stimulus deal. president trump is pushing a bigger relief package. australia and china tensions may as