♪ emily: i'm emily chang in san francisco, and this is "bloomberg technology". coming up in the next hour. tesla shares wiping out their year-to-year gains trading below their entry-level in the s&p 500. the declines following elon musk's comments that bitcoin's valuation seems high, we begin with dan. plus, systemic vulnerabilities

in the software supply chain, revealing testimony on the solar winds hack. we will have highlights with top execs from microsoft and crowd strike. and the struggle is realreal. the covid-19 pandemic continues to challenge consignments marketplace and realreal, and it reported a $53 million net loss in the first quarter. we will speak about the plans to move. first, square and intuit reporting and there is post market action with that gamestop cfo resigning. >> you are seeing a lot of action in the post-market after a fairly quiet trading day. let's get right into it. kicking it off with square. that is the big earnings story coming after the close. you cite a mixed bag of earnings but the highlight was the

ir bitcoin investment, 3318 bitcoins bought for $170 million. you are seeing a little bit of a decline. we will look at hr in a minute. intuit, earnings outlooks beating estimates, and investors not hopping into the shares after the close. seeing a pullback in the shares. as you mentioned, gamestop news, the cfo resigning, pressuring those shares over 4% of a decline there, and taking a broad step back, i want to look at what happened with the major averages. flip up the board. the s&p 500 marginally in the green. futex names being able to lift it higher, but the broad tech story is a negative one. the nasdaq golden dragon index which of course is heavily weighted toward tech as well as the the nasdaq 100 and the semis down for a second straight session. look at the board one more time. we will look at the latest spac

confirming their news with lucid motors. take a look at that one-month chart. 472% gain before today's 38% drop, with traders selling the news. you have seen so much anticipation in that spac. we have to end with bitcoin. that is the major risk sentiment indicator. down for second straight session, square, recently after the close, reported that investment in bitcoin are already seeing that not work in their favor. emily: right. really interesting, thank you. i want to get to tesla. shares wiping out their year-to-year gains the decline , after comments by elon musk that the price of bitcoin seemed high. tesla invested $1.5 billion in the cryptocurrency. i want to bring in our guest. what is your take?

dan: it continues to be this double-edged sword with bitcoin. they are diving into the deep of the pool with bitcoin, and it is still a $750 million profit but it adds more volatility to the name and that is what you are seeing take place in the last 48 hours. emily: it was not just elon musk who said the price seems high. i spoke to bill gates who cautioned against investments in bitcoin at all. take a listen. bill: elon has tons of money and he is sophisticated, so i do not worry that his bitcoin will randomly go up and down. i do think people get bought into the manias who may not have as much money to spare, so i am not bullish on bitcoin and my general thought would be, if you

have less money than elon, you should probably watch out. emily: not mincing words there, dan. do you think that bitcoin investment was potentially tesla getting ahead of itself? dan: i think it was a smart, strategic move. we saw that with square. microstrategy. this is going to have a ripple effect. i think 3% to 5% of public companies over the next 18 months will have some sort of investment in bitcoin. there needs to be regulatory goalposts put in, but it is not a fad. this is not going away. it is going to go more mainstream as i know with musk and tesla, they will continue to see the forest for the trees and even though this will add volatility, this was the right, strategic move. not just from an investment

perspective, but transactionally speaking, even though there is some white knuckles at points today. emily: right, it was not just elon, but janet yellen making cautionary remarks, but i wonder if that will change the type of investor who wants to get with a tesla. dan: that is a great point. institutional investors that i talked to they are cautionary in , terms of bitcoin so they do not love that investment from tesla. i still think the majority of investors are fine with it. we are talking a billion and a half, still less than 10% of the cap, i think it could start to go up to $3 billion, $4 billion, or $5 billion, it becomes a pronounced risk, but on paper, they made more from that bitcoin investment today than selling all of the ev cars last year.

emily: that is an amazing statistic. are there any other fundamental reasons we are seeing the decline in tesla? you have pointed out some of the other things, stopping orders of certain vehicles, how big of a contributor is that? dan: in the ev markets, you are seeing a lot more competitors coming in. gm, ford, you go across the globe, and many automakers are going, and right now, tesla will have a target on their back. we are talking about a $5 trillion market over the next decade. i think in the near term, model y standard, that is not selling it, even though i view it as a small piece, the price cuts come out of hibernation mode, and they are going to come out right now thinking that there is potentially blood in the water, but i still view this as a act

-- company that will exceed 800,000 units. in the golden age of ev on the back of the title wave, that is why i still think it is a trillion dollar market cap. emily: bill gates pointed out that there is an electric car competitor for almost every letter of the alphabet. that was not soap when it came to tesla five years ago. do you see these competitors emerging as truly formidable forces -- could they take a significant share of the electric car market away from tesla? dan: that is starting to go into the risk profile. you look at gm, there is going to be a transformation in gm. i think they are going to be a very successful ev player in terms of everything that is done over there. when you start to look at some of the niche players, especially with china and others, that will

be more and more. we look today, it is still tesla's world in the ev market. over the coming years, $5 trillion dollars up for grabs. it is a pot of gold that many will go after, but that is why they continue to be a leader in the pack, and i view this as a risk off trade. tesla being the poster child in terms of a risk on momentum. emily: we have also been following apple's annual meeting, tim cook talking about m&a and the pandemic. apple also announcing plans to increase the annual dividend. what do you make of it? dan: the big focus today is about streaming. everyone knows they have been massively successful in the super cycle playing out, and we also think more products are coming out this year.

but streaming continues to be the area when you talk about m&a, do they eventually go aggressive on m&a? he do they acquire the studios at mgm? lions gate? i think that is a bit of a focus. because right now they are in a massive position heading to the $3 trillion market cap, and now do they go aggressive on m&a? emily: what is your outlook on whether or not they do that? apple has never made a massive acquisition. a few billion dollars, that is as high as they have been. dan: beats is the largest deal that they have done, and it is not in the dna of cupertino, but ultimately, in this arms race for streaming with netflix, disney, and other players, for apple to be legitimate, they will have to buy a studio. otherwise, they will be a tertiary player, and the window of opportunity continues to be there. that is something, when you talk about that and then next leg

will be ev, we believe the next six to nine months, they announce an ev partnership, and it could be worth $30 per share more than the sum of the parts at apple in the coming years. emily: the big question, will they are one day. we are anxiously waiting to find out. dan ives, thank you. coming up on, microsoft and solarwinds executives among those testifying in front of the senate intelligence committee after a cyber attack disclosed in september. one of the biggest in history. how execs reacted in the hot seat. that's next. this is bloomberg. ♪ so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america.

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>> supply chain attacks are

happening as we speak today independent, which is the reason why we believe that dubbing it as an attack is doing injustice to the broader software community and giving us a false sense of security, possibly. emily: the solarwinds ceo who testified that the u.s. remains vulnerable in cyberspace, this at the first public hearing before congress to address a massive cyber attack by suspected russian hackers against federal government and the private sector. i want to bring in the senior vice president and founder and executive director of the national security institute at george mason university law school. i know you are watching closely with your popcorn today, but did you hear anything surprising, any bombshells or any new information? >> no bombshells.

we were expecting a huge attack or hack against the u.s. government. the president president of companies exploiting the supply chain, but what was interesting was microsoft did make news supportive, and i think the real concern for industry is how do we grapple with the new supply chain threat, which has been around for a long time, which is more aggressively being utilized by a particular russian, but not exclusive russian. emily: talk to us about the microsoft development, how significant is that? jamil: it is something industry folks have been talking about. we have seen the expansion of data breach laws in states, so what the companies don't want is 50 state laws that go after them, so they would rather have one federal standard. not a tremendously surprising development, but certainly a notable one.

emily: there is a lot about this attack, this hack that we still do not know. what are you still wanting to find out? jamil: we know the u.s. government is going to give clear attribution, we know it is the russians, but they will be clear about that. the real question is how widespread was this, how many different routes was this attack against the u.s. government, but appears to be espionage. part of the challenge, we know that microsoft was involved, we know that solarwinds was involved, but it sounds like there are other players with how the russians got in and stayed in. it really highlights for us to come together to work collaboratively to stop these threats going forward. emily: it also highlights the vulnerability of the software supply chain at this moment. can we assume -- we heard the ceo of solarwinds saying, this

is happening as we speak, and what was perhaps unique about this particular attack is just how patient these hackers were, and how long they waited to deploy very sophisticated tactics. jamil: you are right. they spent months and months getting in, establishing themselves, and creating persistence. that is the scariest thing about this hack. not only did they use the supply chain to get in, but now that they have established a strong foothold and they are like the wolves in the henhouse but they , look like hens, so doing the deep network surveillance is going to be hard. that is why you need to have to have industries coming together, the government coming together and creating a defense capability that was told about last march. emily: what is your sense of how much damage was done and will we ever know? jamil: it is going to be hard to

tell exactly the scope of damage. we know that they were deep in, we know that they saw source code for microsoft, whether they downloaded or modified it, we don't have evidence. we know that in the government, they had deep, sustained access to email and information. no evidence they got into classified networks or network -- weapon systems but it can , reveal a lot about how an agency operates and what was sensitive at the time. not classified, but sensitive. we may never know the full scope of the damage. one thing i worry about is the fact that they were in so deep suggests that they could take action or threaten us with action. they have not done that yet, that is where it may cross the line and require a stiff response u.s. government. emily: what you congress should congress -- be doing now? what should the biden administration be doing now, anything they are not doing? jamil: we have to make it clear that we are going to push back. this is not a cyber attack, but

this was espionage. but the russians need to know, if they start to cross that line, threaten us with more disruptions, deletions, disabling of our systems that , would cross a line and they should know that we will push back hard. for right now, sanctions, closing embassies, that is the right start now. down the road, there are red lines, do not come close to them, because we will push back , we will plunge back hard if need be. emily: jamil jaffer, thank you so much. good to have you here. coming up, the cdc sets an emergency meeting for this weekend for authorization of johnson & johnson's covid-19 vaccine. plus, guidelines may change for those who are fully vaccinated. everybody has been wanting to know more. we will have the latest, next. this is bloomberg. ♪ emily: now to the latest in te

effort to vaccinate the u.s. population against covid-19. drugmakers believe the vaccine could be available to all by this summer, if current production plans continue to ramp up. for more on that, i want to get to bloomberg's michele cortes. we are waiting for potentially new guidance from the cdc about what we should and should not do, what to do if you have been vaccinated or not. michelle what sort of new , guidelines are you expecting? michele: for people who have been fully vaccinated now, we are seeing strong efficacy

numbers and the risk that they will be infected and transmitting the infection are very low. while we certainly expect that we will continue to do things like wear masks and social distance, there are other rules that are going to ease up. you don't have to quarantine, if you have been vaccinated you , don't have to stay away from other people if you have been in contact with someone who is infected. we will be able to start having larger gatherings. we will start being able to get back into movie theaters, gyms, restaurants in larger numbers, and a lot of things that have made day-to-day life in the united states and across the world more challenging are going to start easing and that will be happening in the next few weeks. emily: here's the big question, and i know a lot of grandparents and grandchildren have these questions. can my mom who is fully

vaccinated have dinner with our family, unmasked? michele: such a great question, and like everything else with this outbreak, it is one of personal choice. i think public health officials would say that they think that that is not a good idea because one of the highest risks is doing things like eating and drinking, so putting things into your mouth when you are in the contact of other people. you are inviting a potentially higher risk scenario. that being said, vaccinations look good if you can do things like eat outside, make sure you have good ventilation, make sure you are positioned so the grandparents aren't in any direction with the kids. if you are comfortable with that i personally believe that would , be a fine choice to make, again, with every precaution. that being said i am sure that , dr. fauci and others would disagree with me. emily: what about the johnson &

johnson shot, how soon are you expecting some sort of authorization? michele: the fda is meeting this week, on friday to review the johnson & johnson submission. the agency could act, and we saw with pfizer and moderna, they acted within hours. the centers for disease control and prevention, their advisory committee is meeting on monday. we are expecting that by early next week, we will have a recommendation and at this point, everyone does expect that that is going to go in a positive direction, millions of additional doses are going to be available by the end of next month, and this is a one dose shot. making them even easier to distribute. emily: the u.s. just surpassed half a million deaths. if we don't get fully vaccinated

until this summer, how money -- how many more people could die between now and then? michele: great question. i don't think, especially early in the outbreak no one expected that we would be looking at something like this. i remember when everyone was shocked and appalled and there were 200,000 deaths, but no one thought we would get to that. the truth is the virus is still widespread in the united states. it is falling, the case numbers are coming down precipitously and the deaths and hospitalizations will follow the decline, but we are looking at tens of thousands thousands of additional deaths, even among the peoples who are currently hospitalized and sick with this virus. it is really just a heartbreaking thought for those who have gotten infected, who have gotten exposed just in the days and weeks before we would have access to the vaccine. emily: totally devastating, and

michelle thank you for putting , it in perspective. michele cortes, thank you. coming up, facebook back down in a clash with the australian government over sharing news on newsfeeds. all of the details, next. this is bloomberg. ♪

emily: welcome back to "bloomberg technology." i am emily chang in san francisco. facebook will restore its news sharing capabilities in australia after the government agreed to amend legislation, forcing the company and google to pay local publishers for content. for the latest i want to bring in alexandra givens, president and ceo of the center for democracy and technology. i am curious for your take here. is this a victory for facebook? alexandra: facebook and the australian government have reached a deal. facebook will be exempted from the law if they make significant

contributions to the sustainability of the australian news industry. we have addressed the face-off that was happening between mark zuckerberg and rupert murdoch but it does not address any of the underlying policy issues in the australian law and that is something we need to focus on. emily: what are those policy issues? alexandra: the way the australian law was going to work was essentially a link tax. it would require major online services to pay for linking to news content. that is confusing. links are an important way of driving traffic to news sites, but it is problematic when you think about the experience of users online. linking to information is one of the most important ways we communicate with each other and linking to authentic news information is particularly important as we think about the rash of misinformation online. putting a tax on that in a way that makes information platforms have to pay to link to that information is counterproductive in terms of the type of behavior it encourages from each platform.

emily: now, to that end, news publishers might say they are linking to our content for free, and we are at their mercy. for example, if facebook tweaks an algorithm slightly, my traffic can dive. what is your response to that? alexandra: free, independent journalism is essential to our democracy. we need to think about solutions to help address the decline from that industry and make sure that journalists are compensated for the work that they do. but when you do that through and measure like a link tax, it has negative consequences. there is a risk platforms will respond like facebook did last week, which is no longer link to news content altogether. there are platforms that will only link to specific outlets they make a deal with. so they favor outlets like newscorp at the expense of smaller, independent journalists. the last piece, which was not an issue in australia, but that comes up in other proposals like

this, is what happens when we are talking about online platforms that do not have the deep pockets of a facebook or a google to pay for these types of links? what happens when we are talking about wikipedia, medium, or the next service trying to connect people online? they are making it hard for them to link out to authoritative news sources. it is counterproductive for creating a healthy ecosystem online. emily: are you expecting a ripple effect here for similar issues to arise in other countries? and are facebook and google going to have to strike deals in all of them? alexandra: this is not the first time we have seen these types of proposals. they have been percolating for about a decade in europe in particular. starting in the mid-2000's. even in 2014, for example, the spanish government tried to force news aggregators to get a license before they included snippets in their search results. that ended up leading to google

taking out those snippets, which had a significant impact on traffic to different news sites. these conversations have been happening for a while. in europe i think they will continue. there was a european copyright directive passed to make it easier for publishers to enforce this right. those conversations are going to be happening. we saw prime minister justin trudeau weigh in from canada as well, indicating they will be following suit. emily: so where do you say this leaves publishers? are they better positioned as a result of this or not? alexandra: they are being backed up by the government to negotiate hard for compensation for their traffic. so when you do see deals being brokered like the facebook one or the google deal, that is in the short-term helpful for publishers. i think the big question is which publishers and journalists are seeing the benefits. when we look at the tax, the

pressure on social media services, to pay for linking out to sites, it is going to be far easier for there to be backroom deals for brokered licensing agreements with the publications people know best. i think that is really dangerous for the ecosystem, particularly when you think about the small media outlets that people do not know to go to independently. they rely on google search results and facebook and others to help people get to their sites. in these types of pay to play scenarios, it is really hard for those journalists and independent news outlets to thrive. emily: all right. fascinating to watch this play out. alexandra givens of the center for democracy and technology. thank you so much for sharing your perspective with us. lucid motors, the saudi-backed electric carmaker, have agreed to go public through a reverse merger with a michael klein spac. but that is all translating into a delay in bringing its car to market. as part of the deal, lucid unveiled productions of debut

luxury ev's would be put on hold until an unspecified date. the ceo told our ed ludlow why. peter: i was pushing like crazy for spring, and when we met with the churchill capital team, i took alan out in the car and he drove the car, loved it, the very car off the production first line. we had a meeting of minds with alan and all his experience with boeing, with michael klein, and myself. we all got on like a house on fire, and recognized that, peter, why are you pushing like crazy for this almost artificial -- for the spring? what is really important here is to get the quality right. you will know it is perfect when it will truly delight the customer. so they freed me. they said, look, get the product right.

don't look to the artificial construct of a specific date. if it rolls on into the second half of the year, we are ok with that. look at the capital. you can pull the trigger when the time is right. we trust you to get it right. we know you want to make it perfect. they are making a luxury car. and when tesla came to market with model s 10 years ago, i think a lot of flak was cut then, because the electric car was such a fun experience, people forgave the build quality issues. the market is not going to be forgiving now. this is a very different world. we have to get things right. and the impact of covid is not to be underestimated here, ed. so, you know, we're chasing down a number of suppliers from

around the world. we have 250 suppliers, 3000 parts. and that whole infrastructure logistic operation has been affected by covid. so that's had a big impact of just pushing in and out a little bit into the second half. ed: has the global semiconductor shortage had any impact and caused this delay in production? peter: it has not for us, because we have had some very savvy purchases in our purchasing teams, who actually preempted this and had negotiated supply agreements, which have really mitigated that risk. but i recognize it's affecting some automakers, notably porsche, with their announcement very recently. ed: what about a cash crunch? i mean, how pressing was the need for you to raise funds prior to this deal? you say in the investor deck that you would need around $600 million in terms of bridge financing before the deal with churchill closes later this year.

peter: there was no cash crunch. we have got a great primary investor in the public investment fund of saudi arabia. they're in for the long term. they have got markets and they are very supportive of us as strategic investors. for them, this was a validation point, and validate we have, indeed. we have attracted the bluest of blue chip investors to validate their original investment. we did not go to the market needy at all. we went for validation. and that is exactly what we have achieved. ed: you say in the investor deck that you are going to spend about $10 billion over the course of the next four years. that is a lot of money in a short space of time. how are you going to get those additional funds? peter: well, we have already brought in $4.5 billion from the churchill capital from spac and the pipe.

we extended the pipe because it was so oversubscribed. we could have gone for more, actually, but we decided to limit it. that gives us an absolute clear runway well into 2023. and in that time, we can build out phase two of the factory. that is capital-intensive. but we are investing because we are vertically integrated. and it gets us to a situation where gravity will be very near ready for production. emily: peter rawlinson there, ceo of lucid, with bloomberg's ed ludlow. coming up, the realreal fourth-quarter results are out with more losses, but new normal could see the bounceback of the luxury consignment market. we will speak to the founder and ceo julie wainwright about her outlook for 2021. this is bloomberg. ♪

emily: the realreal online consignment marketplace for luxury goods reported worse than expected fourth-quarter results down more than 13%, total revenue down 10%. they say the pandemic has quote, temporarily disrupted its past profitability but pointing to growth in gross merchandise value. with vaccines rolling out over the next few months, could the luxury consignment market get back to growth? joining us now is the realreal founder and ceo, julie wainwright. great to have you back with us. you and i have talked over the years about how customers love beautiful things, but right now they are not necessarily buying them. what are the numbers telling you? julie: well, that is not really a great way to characterize it. the truth is due to covid

restrictions, we have had a harder time getting supply in. and our sellthrough is as vibrant as ever, but that all started changing in december. november, we had a good supply month. december, we started seeing growth in demand. and we also are seeing it in january and february. again, because we are not a manufacturer, we are reliant on getting things from peoples' homes. it has been very challenging in covid times. coupled with early on california shut down our warehouse in brisbane, which had a long-term impact because we could not pick up units and could not process them in the state of california. having said that, that was last year. we're already seeing signs of recovery. january was great. february, month to date, we are great.

we expect to continue for stronger growth in the future. emily: if it is more of a supply issue then, what does supply look like for the year ahead? julie: well, it started changing again last year, mostly driven by adding our neighborhood stores where people felt very comfortable dropping off. prior to covid, most of our supply came from us visiting your homes and going into your home. clearly that was not the best option, and an option many people did not want during covid times. however, people were very comfortable dropping off at stores. so we started introducing neighborhood stores to complement our flagship stores, and it helped drive supply up by about 13%, and it is growing now even more. this quarter it has grown even more. we have not given out the year-to-date number but the growth is there, it is real. we have supplemented that with more vendor products, some vendor products. but still the primary growth in our supply is people feeling

very comfortable with dropping off at stores. emily: so, in our interview, you are one of the last interviews before lockdown. we were at your store in san francisco. it was a wonderful experience, and obviously so much has changed since then. but you drive by, i see a line out the door all the time. talk to us about how your physical stores are doing, and how you see that contributing to the growth in the future. julie: you are absolutely right. we are adhering to all covid restrictions. so we have a restricted number of people in the store. we opened a palo alto neighborhood store which only allows four to six people in at a time. you can tell it is really constricted. having said that, the stores are really bouncing back. primarily for supply, secondarily for demand. but i was in new york over the

weekend, and i had a driver -- i went into our new brooklyn store, which was incredible. but i had a driver on saturday take me past our stores in soho, brooklyn, and madison, and we had lines out the door. so can you imagine once restrictions lift? people are waiting out -- it was about 28 degrees. they are waiting out in the cold to go into the store to either consign or buy. i cannot wait for restrictions to ease, because i think we are going to skyrocket. and we have announced by the end of june we will have 10 more total new stores open that are more neighborhood-focused, which we expect to do very well. emily: so then what is your outlook on demand? because people of asia love -- people obviously love, as i said, luxury, beautiful things. but if it is a luxury and people are struggling and many people have lost their jobs, how much income are people going to have to spend on something that they might find at the realreal?

julie: well, the facts are in. we had 21% new buyers in q4 year on year. and the truth is we are still a value versus full price. when you look at it versus the value shopper, we are still attracting the value shopper. it's an amazing deal and people can resell it. so if people do buy things, they already know the resale value. we saw a very interesting trend during covid where people were investing in more handbags, fine jewelry and watches, more so than any other category. those categories were up. now, what we are now seeing, which is positive for us because it is the single largest category, apparel is back. apparel is back to growing. so i hear what you are saying. there are hard economic times. on the other hand, there is still a large population that do have jobs and they are value

conscious and they are also environmentally conscious. so i believe the combination is going to suit us well. as restrictions ease and we are already seeing it, we expect our business to really take off. emily: you know, you have done this partnership with gucci, i know we are coming up on your 10 year anniversary. let's take it a year out from now, with the development of these new physical stores. how does the realreal look different, let's say, a year from now? julie: if you would have asked me that -- last time we met, literally two days later we had to shut everything down for weeks. so i don't want to go too far out in the future because if you would have asked me if we would have had a pandemic and it would completely sideline our 40% growth we were having in q1 prior to the pandemic, i would not have believed you. but i can tell you we exited 2020 with many more options than

we had going into 2020. what i mean by that is neighborhood stores are not going to go away. in fact, we are sort of revitalizing retail in the neighborhoods we come into. the only other store that has this much action wherever we are is the apple store. so neighborhood stores i believe are here to stay. virtual appointments are here to stay. i could go on. at some point we are going to be international, and that point is probably, i would say, 2022 is our year of international also. so i just feel like the year gave us gifts that we would not have wanted to go through what we did in 2020, because it was a really hard year on us more than other businesses, but we have come out of it stronger with more avenues for growth. emily: all right. we will be watching. julie wainwright, founder and ceo of the realreal. thank you so much for joining us. coming up, buy the dip.

the hashtag trends on twitter. evidence day traders are taking advantage of pullbacks. plus, the ceo of robinhood talks about short-sellers. we will talk about the market trends, next. this is bloomberg. ♪

cathie: we are very positive on bitcoin. again, very happy to see a healthy correction here. no market is straight up. everyone should know that. everyone should have some dry powder for days like these. and i have been saying that for a while. emily: cathie wood there. her thoughts on bitcoin earlier on bloomberg radio. she also indicates she is buying the 13% dip in tesla, adding that quote, corrections are good, they keep us all humble. as for buying the dip, cathie was not alone. tuesday morning's plunge offered a rare discounted buying opportunity for true believers.

the popular hashtag, #buythedip. the nasdaq 100 briefly turning positive after erasing 2021 gains. i want to bring in our reporter, katie greifeld. how much of the dip was bought? katie: the buy the dip mentality was definitely front and center. this was the first time the nasdaq 100 has erased a dip of over 3.5% to end about flat. we have not seen that since february of last year when the pandemic headlines first really started to hit markets. there are several potential factors here. some technicals going on, he had jerome powell in front of congress. but what it boils down to is the buy the dip mentality has been rewarded over the past year or so, from day traders to cathie wood, coming in and buying more tesla stock. that is helping shares bump a little higher after hours. they are up over 2% at this point, which is great news for

tesla since it has been a rough couple days, down over 10% this week alone. emily: meantime, robinhood ceo vlad tenev speaking, criticizing shortselling. it's an argument we have heard before. is it gaining any traction? katie: yes. that has been an interesting byproduct of this entire gamestop phenomenon. shortselling -- just to recap quickly, it is when a trader borrows a share of a company and sells it with the hope they will be able to buy it back at a cheaper price. what the robinhood ceo is criticizing is that you can short a share multiple times. that is why you saw short interest on gamestop as high as 140%, which sounds impossible but it is a dynamic that you can short one share multiple times. so he said specifically this causes a runaway train reaction. it sounds like he is describing a short squeeze. that is when traders who were shorting a stock are basically

forced out of that position. there was definitely some of that going on with gamestop. you saw the high short interest level drop down to about 40% when i last checked. it is a debate. there are people such as tenev saying this is bad for markets. others argue this helps make markets more efficient. it has uncovered scandals such as enron. it will be fascinating to see if any actual regulation comes out of this moment in time. emily: and quickly, gamestop closing $44 a share today. the cfo resigning. do we know why? katie: not certain why, but it was interesting to see that stock move so much after hours after that move. i mean, there's still the fundamental backing, you have activists joining the board. so we will see as the market gets a chance to react to that once they open tomorrow how it shakes out. but definitely some very interesting breaking news out of gamestop.

emily: something we will continue to follow. katie greifeld, thank you so much. that does it for this edition of "bloomberg technology." we have daybreak asia coming up next. i am emily chang in san francisco. this is bloomberg. ♪

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