rotrainer is tested to support over 500 pounds. lose weight, look great, and be healthy. go to aerotrainer.com. that's a-e-r-o trainer.com. emily: i'm emily chang in san francisco, and this is bloomberg technology. coming up in the next hour, airbnb and doordash boost their prices. the doordash valuation would be double where it raised funding in june. we will look at how investor appetite is shaping up. flag could salesforce and catalyzed a wave of consolidation.

it will beevie says to salesforce what instagram was to facebook. planning a new set of chips to outperform intel. what it means in the next generation of macs and more. first, u.s. stocks dropped monday amid a surge in case of covid-19. we are expecting to hear more about the vaccine distribution as states try to outline the doses, how many they will get, and one. let's get to abigail doolittle with the latest on how it is played out in the markets. breakdown that and what is to come this week. abigail: an interesting day -- we have had big gains on positive vaccine news and this week the vaccine will start to be distributed in the u.k.. there is some expectation that will happen next week, but we had a bit of a down day in some of the indexes. we had strength is the nasdaq 100 and other tech-heavy indexes. the nasdaq 100 up a nice day in

a row -- its longest daily winning streak going back to december, 2019. that strength, emily -- tesla -- the stock up 7.1%, continuing to store up till it will be included in the s&p 500 on december 31. it is now a $600 billion company. it is up more than 660% on the year -- really incredible. will there be some sell the news action on december 31 when it is in the s&p 500? we had strength out of moderna. netflix national news there, but there could be some anticipation around the new lockdown that is my seymour's inscription growth. you were talking about -- might see more subscription growth. you are talking about ipo's. it has been a banner ipo year. the ipo etf is tracking the action, up 25%, and

as you said, airbnb set to go public thursday. they recently -- the ipo range, suggesting there is strong demand. the valuation might have $42 million once public. doordash going public on wednesday. they also opt their name -- upped their name. this is not just a big ipo month, it is said to be a record december for ipos. really incredible given what we have going on this week -- this year. if you look at to be sent -- the stocks are up more than 200% despite the s&p. you have to ask the question, is that because conditions are so strong or is there a possibility that some in the know think the window could close in 2021 or early-21 -- early-2021. something to think about.

we are not just when you think about it. we will talk about that with our ipo reporter. bloomberg's abigail doolittle, thank you for that update. for more on the pipeline, december set to be the biggest ipos.nd record for doordash and airbnb expected to start this week, both hoping to raise a combined $6.2 billion if they price at the top of their ranges. i want to bring in bloomberg's crystal tse. we expect doordash on wednesday. airbnb on thursday. what do we know? kristol: we know they have both gotten seemingly good response. that is why they opt their range. airbnb announced they are going to go for a higher range and doordash did the same thing late last week. trending in are

price and trade. the valuation -- it is probably not the highest they could go. look at the regulations, it is still about 100% of what they already have. we could potentially see an even higher number. it is certainly critical to see a b -- airbnb in this position. at the high-end of the range would be fairly in line with some sort of uplift given what they have seen on the private market. doordash is an interesting story -- doubling their valuation to what they saw and a funding round just six months ago. how do the numbers back that up? pinch hitterdash's is because of the lockdown they really have benefited. because of the suburban footprint, there up as an

industry. there are more lockdowns coming up, so it looks like doordash is going to continue, and that is why they are justifying this valuation. then the same market could go ar airbnb because they are at low right now and if you buy into the ipo, you can see one travel resumes, when the vaccine comes, which is, i guess, potentially in the near future, you can see airbnb shares go up substantially. so, really, you can have both sides of the story, both based on where we are in the pandemic but this is,s, right now -- we have seen both of them have exceeded expectations, and they have a significant increase compared to their previous private valuations. interesting. it seems like next week things are not going to slow down. we're also looking ahead to

wish, especially on the hike ipo -- tech ipo pipeline. crystal: wish filed with their name.der their parent's it is a discounted online retailer. -- $17covid beneficiary billion evaluation -- not a small company. is just about to go anlic -- we are expecting online game company, and then lets onlineich consumers pay for goods and installment. these are all consumer-facing internet companies could we are collecting all of them to come before christmas. hopefully things quiet down a little bit at christmas. we think there will be some stuff coming between christmas and new year's because it is the busiest december ever.

we will cannot believe see ipos between christmas and new year's, but it has been a year unlike any other other -- in some anyways. you are for the update. r, thews out of ube ridesharing service selling their self driving business to aurora and taking a stake in exchange for investing $400 billion in our laura. they will get a 26% ownership stake. sources say it will create a larger competitor to the leader in the field, alphabet, and it is a big surrender for uber, which it made a big bet on self driving cars. coming up and we hear from box aaron levie on the megadeal that is salesforce plus slack. ♪ that is next. this is bloomberg. -- that is next. this is bloomberg. ♪

emily: demand for the cloud has rocketed in 2020 amid schools closing and workforce is going remote. in last week's megadeal with salesforce and slack i spoke to both company's heads for their take on what the deal means. >> you said it right, it is a marriage made in heaven. >> the key message is there is an opportunity for something nonlinear. >> the idea you can have this next generation, work from anywhere environment, runs on my phone, ipad --amazing what is possible. emily: many are looking at this as a defensive move against microsoft, what is your response to that? salesforce has never been

stronger. stewart: pursley, i think we are better than microsoft. emily: not holding back there. ceomore to come, i have box aaron levie, who has called slack's as instagram was to facebook. what you describe it that way? aaron: obvious it is an imperfect analogy but it was one of the most important m&a deals have seen in many years, maybe ever in enterprise software. i think slack joining forces with salesforce will completely transform this part of the industry around the future of work and productivity software, and what slack really brings -- salesforce is this modern operating system for knowledge work where you can connect the

front office, back office, customers, partners, and have a common interface to be able to communicate and collaborate. i think it is very transformational for salesforce, exciting for slack and great for the ecosystem where slack is created an open platform that more software can plug into a create a new experience for customers. think it is exciting all around. will seees it mean we more cost consolidation in 2020 one in this space? it is funny bigger spotlight on what the future of work looks like, the future of data and workflows across this platform. i would anticipate certainly more m&a next year. i do not know if it is an .nusually high period what we are seeing is a more general awareness that enterprise software is bigger than ever, markets are bigger than ever and there are more disruptive platforms and ever.

that could cause a bit of a frenzy were companies do want to join forces and be able to go after these markets in a bigger way. emily: but i wonder if given that we are seeing record -- potentially record multiples, the market keeps going up -- if that slows the consolidation down. aaron: certainly, you have to be in a position like marc benioff where he is able to make long-term bets on market trends and pay the premiums that are necessary out there. c is uniquely able to do that. he has called these trends correctly if -- and almost every single stage if not every stage of the cloud. not everyone can do that. it might be one point of friction for these types of consolidation for the future. overall come with this is a bigger signal of is how big these markets are, even when we

think about today, either in the u.s. or other key markets for enterprise software -- we're probably only about 10% of the way penetrated when you think about modern software like slack. you still have a significant portion of technology workers they need to be using these modern tools and the future. so, we are as far along -- as far along in this journey as many of us are in, we are still very early in the total potential in the market. emily: what do you make of the competitive threat of microsoft? you heard stewart say he is sick of talking about it, but it seems like the threat is real. case, slacktewart's is a different kind of product. slack is an open platform for bridging together different software, different medication with partners, external vendors, internal employees -- there is not a perfect, 121 comparison. it hasn't been that is complete

unique and disruptive. i think, again, the recognition of the market is slack plus salesforce is able to go after this market in a much bigger way. we have to think about this market, not in the typical zero-some way that some other industries have evolved where is -- where if one company wins, the company loses. i think the markets are so large we will see growth from most segments of the software in the coming years simply because of how much of the world still has yet to be digitized. processes of business that have not gone digital, the workloads that are still in legacy data systems not in the cloud -- for all of these reasons we are still in the very early days. i don't think we will see the same level of head-to-head competition that maybe it seems like. that said, slack has made the contention that microsoft is anticompetitive by bundling some

of its features with the office suite. i am sure this is something that box has been exposed to as well. is that a complaint you would make in the same way? aaron: well, i think we are still very early in what should the regulatory environment look like for technology and consumer and clouds. what i think will happen in the next few years -- you need a stable environment in the u.s. political system to a congress this. you need to create -- one of the modern rules of the road for the cloud and the internet and i do not know if it is something that looks like net neutrality but for cloud computing where you have certain rules about interoperability and the kind of choice the customers can have, but we are still in the early stages of trying to figure out what types of regulation, what kind of approaches do we have to open marketplaces in the internet age, and we are just

very early and trying to define what that looks like. emily: now, we were just talking about how it has been or is becoming a record year for ipo's -- shocking, when it did seem like the world was going to end six months ago -- curious how you are preparing for 2021, given that obviously there will be a new administration, new environment, potentially a new vaccine -- it is hard to understand why markets keep going up, and company still going out of the -- keep going out of the gate, but they do. aaron: for the kinds of companies emerging publicly, whether it is the recent ipos or upcoming ipos like doordash, airbnb, others, it is the excitement around digital technologies and the markets these companies play in, and the fact they have been building up disruptive platforms for coming in some cases, over a decade, and there is a lot of interest and excitement around what that future of these industries are

-- the future of the data, hospitality, the future of e-commerce, food and grocery and arevery -- i think what you seeing is a significant habitat on the part of public markets for who are no -- who are the winners in the future economy where things move more digital -- there is a lot of capital available for investing in these types of businesses. you have to appreciate, given interest rates, where dollars are going to be going in terms of where did you get growth, and that is also a factor that is playing out. going into next year it would be great to have the vaccine rolled out as quickly as humanly possible, be able to open up the economy even further in a safe and healthy way, and really see where -- what things are back to normal and what things have been transformed forever, and we will see a lot of those things that have been transformed forever. we shall wait and see. aaron levie, ceo of box.

there he didn't 2021 will bring us. thank you so much. coming up, $1 trillion -- that is how much the global economy is losing due to an increase in cyberattacks, but that is not the only impact of this type of crime. the ceo of mcafee will join us next to talk about what is at stake and how companies stay ahead. this is bloomberg. ♪

emily: as people around the world continue to work from home and often less secure networks, the cyber security firm mcafee says it is seen a large increase in the frequency and severity of cyberattacks on businesses. in a new report titled the hidden cost of cybercrime, they find that crime costs the global economy more than one trillion dollars, jumping more than 15% in two years. joining me for more, mcafee

senior vice president and ceo, steve grogan --jilliam goodman --steve grobman. how do you get to that number? steve: it is about the indirect costs, opportunity cost, brand reputation, impact to employee morale -- if you add up all of those costs as well as the cost to secure environments, that is where the model that who partnered with on this report got to that staggering $1 trillion number. so, how does the activity you are seeing now compared to, let's say last year at this time, given that we are all working from home, so many are schooling from home? steve: there are a few things. the working from home, it basically creates a soft target for the cyber criminals. you can think of everyone working from home as now being their own i.t. department. they are working on home

networks, using consumer devices, and that makes it easier for cyber criminals to get into an organization. we are also seeing cyber criminals attack differently. they used to attack a system or a device. now we see them taking over an organization, which makes it a lot more difficult and more expensive to know when they have been removed. they: in cyberspace, attacks are sometimes coordinated or happening in parallel to things happening at the government or at a geopolitical level. is there anything in particular that you believe a new, incoming administration should be on the lookout for, given the state of where we are right now in andrspace in the pandemic no vaccine yet on the market? absolutely. one of the things the report goes into, many countries fail

to enforce cybercrime laws. in some cases, such as north korea, we actually see that the state itself is conducting cyber criminal activity to pay for things like their nuclear program. as part of the new administration, being able to have a discussion where a zero tolerance policy for cybercrime occurring within a country is norms,d also setting new making it clear that no government can tolerate things like theft of individual -- intellectual property, which is critical to our tech sector. mcafee is now a newly public company -- got bought by intel, when public again earlier this month. talk to us about what your priorities are going into 2021. steve: so, in 2021 it is all about having a comprehensive

defense for both the consumer and the enterprise market. we areconsumer space, having to protect the entire digital life of the consumer -- it is not just about protecting their pc, but also working with them everywhere that they go if they have been part of a digital breach, if they are using other devices -- on the enterprise side, it is about recognizing all of the new technologies, so his organizations move to the cloud, having strong cloud defenses, as we are working from home, having good cloud edge defense capability. it is putting all of that together, and as we have seen from this report, the problem statement is just a staggering challenge, and mcafee is right there to be part of the solution. right, mcafee ceo steve grobman, to our for joining us. updating, cloudflare withols to keep people

this compliance with law somewhere where they do business. a conversation with the ceo coming up next. this is bloomberg. ♪ ♪ ♪ the usual gifts are just not going to cut it.

we have to find something else. good luck! what does that mean? we are doomed. [laughter] that's it. i figured it out! we're going to give togetherness. that sounds dumb. we're going to take all those family moments and package them. hmm. [laughing] that works.

emily: welcome back to bloomberg technology. i'm emily chang in san francisco. world's first globally distributed network with regional controls that gives companies control over where their data goes and who has access to it no matter where they do business. joining us for an exclusion -- exclusive conversation is cloud flare co-founder matthew prints. what does this mean if you are a business uses your sweet? matthew: what's important to

start with is what happens with the typical cloud infrastructure. if you are summoning a car service or ordering something from your favorite e-commerce site, even if that service or site is using the cloud, that data is going back to one location in the world and by and large, that's going to somewhere like virginia or oregon or a limited set of where data is stored. what's happening is consumers are getting fed up and governments are getting fed up with all that data getting sent back to these limited set regions around the world. so they passed rules that say if you're a business going forward, you need to store the data of your customers in the jurisdictions where those customers live, work, reside and use your service and you can't transfer it back to virginia. that creates a real challenge for businesses because up until now, there hasn't been a cloud

that allows you to do that. so what we are launching is a way to use the cloud flare network and keep the data of your customer in the region where the customer lives to comply with what is an increasingly complicated set of regulations around the world. emily: will this change day-to-day business practices or how i experience my favorite businesses product? matthew: i think what you are seeing from businesses themselves is they have a lot of pressure from regulators. we saw this with tiktok and pressure from the trump administration to keep data about u.s. citizens in the united states. facebook says they will pull out of europe if they have to not send data about european systems back to the united states. over time, we believe businesses that are best going to comply with these regulations are going to use a service like cloud flare to make sure consumers get

a great experience and still get the efficiency of the cloud and can comply with what our increasingly difficult regulations around the world. does potential incoming legislation in the united states impact this effort? companiesbout 76% of around the world are about to pass privacy regulations. nearly two thirds of the worlds population is covered by privacy regulation. the japanese government, brazilian government, indian government are all saying that you need to, as a business, to store customers data local to within our jurisdiction and keep it there. that creates a problem for businesses trying to be global. that is what inspired us to launch this product. emily: what does this mean for

cloud flare? does it give you an edge your competitors are not offering? most of thehink traditional public clouds, microsoft, google cloud, they were built for a world where it's ok to send all that data back to some central location. what we see from our customers as they want to comply with these increasingly complicated regulations. because the network already spans 100 countries around the world, we are in a unique position to help our customers and businesses, but make sure they can service their customers wherever their customers are. emily: you are getting a lot of data coming in about black friday, cyber monday, how folks have been shopping over the last few weeks. monday was bigger than black friday. how might the trends be different this year compared to last? matthew: the general thought was

cyber monday was when people went back to work and sat down during their lunch break and bought things on e-commerce sites where black friday was where we all went out to stand in line and go to walmart or target and buy whatever the latest deals are. we anticipated that would not change that much this year, but it was surprising. we saw less e-commerce shopping on black friday and more on cyber monday, where as black friday has previously dominated cyber monday. so we are seeing shopping shift toward e-commerce and is being spread out over a longer time. last week was a record-breaking week for e-commerce traffic from everything we could see. emily: is this year going to be an odd year or are these trends here to stay? will next year looks similar given new habits being formed? matthew: it's hard to say what's

going to happen when we go back. i'm looking forward to shopping beenrson where as i have very much and e-commerce shopper myself. but now that consumers have learned they can get groceries on line, that that is putting a lot of additional load on the networks to make sure they can accommodate that. at cloud fair -- at cloud flare, we are making sure we can stand up to whatever the christmas holiday brings. as a business leader, how are you planning for 2020 one? we see this burst of ipos at the end of the year that are going to happen between christmas and new year's. a venture capital firm has called covid the black swan of 2020, but for so many tech companies, it has been a bigger year than ever. how are you preparing for next

year? matthew: it has been interesting to watch what has happened since the pandemic. the pandemic really hit at the very end of q1 and q2, we saw a harder time for our sales team to close business but our ability to expand with our existing customers was very strong. q3 saw a new business is realize that this transition we have made toward remote work is here to stay. a real that there is strength in that transition. what the pandemic has caused, if not a radical rethink of how we work, but accelerated trends that were already happening. we see strength in the core shift to the cloud for services cloud flare provides going into next year. the main thing we are thinking about is how do we think about coming back to work? by the time we get to july when

august -- when offices can be fully open, more than half of cloud flare employees will have never worked a single day in a cloud flare office. that's pretty incredible. how youresting to hear are working to keep those employees engaged and feel like they are part of something bigger even though they may have never met their colleagues. we have to leave it there. matthew prince, thank you so much for joining us. is blank -- iso buying imi mobile. we will speak about what that means for the company and look ahead to their webex one event tomorrow. this is bloomberg. ♪

emily: software and cloud companies have moved front and center over the last year amid businesses scrambling to move their workforces online and schools across the nation going to distance learning. vaccines near, uncertainty lies ahead for the collaboration industry. joining me is the cisco vice , starting off today with a couple of new acquisitions. i will round out your portfolio. talk about what these companies mean. thank you for having me. we are excited about both of these acquisitions. one we announced today was imi mobile. the customer experience

and service base. both you and i have been at a point where we have called a call center after we have made a purchase and they are frustrated because they transfer us from one of -- one department to another and that is what we are trying to solve with this business. that is where we think imi mobile is going to help us change the way the customer experience evolves over time. that's one area. in second area is a company the audience engagement platform where imagine you are in a room with 10,000 people, but you want to make sure they are interacting with you as a presenter. it allows you to do that by

making sure you can pose questions, you pose the question so there's good interactivity audience. it feels like you are engaging in a very intimate conversation with people. emily: cisco's webex had a moment this year but so have many platforms. there are a myriad rivals out there, zuma stands out. has webex held its own over the last year? what trends are you seeing? have heldfeel like we more than our own over the past year. we've seen an eight times increase in our video volume. we've seen over 600 million people on a monthly basis using our service. nine out of 10 financial services -- institutions use our service, so there's a fair amount of government,

institutions, eight out of 10 educational institutions use our service. there is a fair amount of increase in volume and what we thought was at the beginning of the covid crisis, we would see a spike but we have not seen that all. we have seen it keeps going up and we have record month after record month and it has been remarkable to see the amount of demand of new customers as well as existing customers using it more and more. webex one event is tomorrow, but it is an increasingly crowded field. what are you going to announce tomorrow that the game changer? we have our first of a :.nd future work for those of you who have not registered, go to webex.com and

register. we are going to announce three major areas of innovation. how do people stay productive but also reduce the amount of fatigue and stress and all the things that go with working at home that and that being stressful. how can people stay productive without being stressed and fatigued? the second is around a massive investment in a partner ecosystem. if you think about salesforce facebook's --d and facebook, all of these players and many more, we are going to bring that experience so regardless of the application, if the customer is invested in those applications, we want to make sure we have world-class integration with those applications. interoperability is very important.

is in devices. we are lucky to have a portfolio of not just software but devices tying those together, so we -- think of us more like apple where would be -- we would be the apple of the videoconferencing area. emily: the apple of the videoconferencing era. we will be watching the event tomorrow. securityal manager of softwaremor dealnews, and with the quick king at home in the pandemic, we caught up with the big investor in the space, orlando bravo. the buyout veteran talked about his reactions. >> i have been absolutely

surprised. we investors can be taught to be overly conservative rather than overly optimistic, so we were going through all the things that could happen and were drawing parallels to 2008. no lp commitments were very few, very little capital deployment, and corporations freezing their budgets. those were the terms they used back then. this time, it was totally different. lps were willing to take risks and corporate buyers were leaning forward and making investments. interesting that is about this cycle is how much of the software market has heated up significant interest of valuations that are extraordinarily high. how does that impact the vehicle when you are thinking about investing and thinking about the return profile with so many investments you make? >> this is a really good

environment because with the scale we have now, we can do the same thing we have done over the past 20 years but at scale. that gives us the opportunity to buy the number one players in each market. the leader growing over 20% and compounding every year. the most important thing is our strategy is an operational one. we are not in the business of buying high and trying to sell higher. that's a short-lived strategy. we try to partner with the best operators. we only work with existing management, then we put a set of principles in place to take those companies to a level they did not think was possible. take $5ooking to billion to $10 billion market cap companies and get them to 30 or 50 very quickly.

if you look at our recent deal, ellie mae, we bought it and 18 months later, we sold it for 11 billion. our peers have asked how did that happen? it happened by building fundamental value. at the beginning, the company had 20% margin and was growing at 10%. 18 months later, we have 60%, so we were growing at 30%. >> isn't it situations like that where you have this incredible turnaround, isn't it situations like that that mean it's a great market to be selling and but to acquire 14, 15 times whatever the multiples are right now, the difficult to make return profile your investors want you to make. >> the most important thing is not the price going in these days. this is a market of growth, so

it is the market of no leverage relative to your capital structure given the entry price you have to stay in. but it is a market where the growth opportunities are so much bigger because these companies are all cloud, all returning revenue, and they are solving problems 10 to 20 times bigger than the problems being solved 10 or 12 years ago. and dou get that right innovation done right from an operations standpoint, you can make a wonderful return in this market. leverage think the aspect and traditional private equity models, putting on debt choose, is that going to be a thing of the past bearing in mind what happened with those companies? >> the leverage multiples have remained the same since 2000 five with the exception of the financial crisis. what has changed is the quality of the business.

the size of those companies and the growth rate of those companies which explains the valuation increase. making money through leverage, particularly in tight buyouts and software buyouts is a thing of the past. financial engineering is a thing of the past. the way to make money in the way we have done it is through operations. bloomberg's at hammond there with orlando bravo. still ahead, apple aims to outrun the chip industry top player and that is intel. all the details, next. this is bloomberg. ♪

emily: let's get to apple now -- the iphone maker is planning a series of new processors for introduction aimed at

outperforming intel's fastest chip. for more, we want to bring in mark gurman who covers apple for us. where does the state of apples chip effort stand? for having me. right now, apple has three computer lines with this new m1 processor. these have chips on line with the highest ipads with some mid thoseintel processor and launched a few weeks ago. emily: how does this compare with what intel has to offer? could it move toward damaging intel's legacy in this entire industry? mark: one of the core aspect of chip design, the more cores you have, the more tasks you can do

at once while keeping the machine at top speed. right now, apple's chips are for then for low performance, high efficiency, so eight total. these new ones across 2021 and into 22 will go up to 16 and even 32 and that compares to the having and mac pro only 28, so they are going to beat them now in terms of performance based on those numbers. emily: how will other computer aggressivet to an 2020 one line-up from apple? see apple pushing the specification and the underlying ex 86.hereas intel uses right now, it seems like other computer makers are going to take a look at moving to that same underlying architecture given how far ahead they will see them going in the coming

years. what about graphics? what does it mean for nvidia or amd? we are looking at them topping two to three times faster with the new apple graphics chip. emily: all the info for us. thank you for that date. something we will follow going into next year. that does it for this it is an of bloomberg technology. daybreak: asia is coming up next. this is bloomberg. ♪ [ sigh ] not gonna happen.

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