>> from the heart of where innovation, money, and power collide, in tillich and valley and beyond, this is "bloomberg technology" with emily chang. -- in silicon valley and beyond, this is "bloomberg technology" with emily chang. a man -- emily: for now, facebooks's

oversight board upholds the ban on donald trump's account but recommends a review. the former president calling a disgrace. -- major recall -- treadmill products after a child died, and more than 70 safety incidents reported. shares tumbling. for now, facebooks's oversight board upholds the ban on donald trump's account but recommends a review. the former president calling a disgrace and a slight to free speech. first, a busy day for the markets. lots of earnings to get to. including uber. jessica alba's company started trading, shares popping their debut, now a $2 billion company. later this hour, you will hear part of my interview with alba. if you are here for crypto, amid rallies, you are in luck. we have galaxy digitals mike nova kratz joining us on the

heels of its 1.2 plan dollar deal to buy crypto custodian. to start things off, i want to get to the markets where tech lead the losses in stocks. our reporter has the full picture. >> tech losing and weighing down the s&p 500 to the point that cyclicals were not able to keep that index up. that notable exception are semiconductors, even when the broader index was not doing that great. let's get to peloton. shares dropping 20% in intraday trading. this is the most all the way back to november 9 when vaccine news hit stay-at-home stocks. peloton is one of those. i want to get to those earning stories, seems to be an important piece. shares are up, that means they beat their estimates, videogames boosting their full-year guidance, something tech watchers are paying attention to.

paypal beating estimates. also seeing some stocks to the downside. the forecast not meet analyst expectations. you did see good news out of uber, beating estimates, strong delivery growth. that earnings call is going on, maybe they can reverse course. emily: bloomberg's kriti gupta. i want to dig deeper into over's -- uber's results. give us the highlights as they stand out to you. we know demand is picking up but they are having trouble meeting supply. angelo: in terms of uber and the results, we had an indication of what the numbers were going to look like. not that anyone is surprised.

on both ends, in terms of the booking side of things, i think what caused the stock to turn around and negative is they did provide some guidance into the second quarter. essentially, highlighted the tight supply situation on the mobility side on the mobility. -- on the mobility side, they will have to provide extra incentives. it could weigh on the number in the second quarter before improving in the second half of the year. in addition, there is clearly uncertainty to the trajectory how the delivery side of things will play out once the pandemic ends. that being said, the results are very good. emily: what are your expectations? for food delivery as we come out of the pandemic. more of us are hooked, but more people will want to go to a restaurant and grocery store. angelo: as far as the first quarter was concerned, it has been very resilient.

our view is as we start coming into the summer months, we are going to see lower usage rates, clearly going to have a negative impact. we do have a sell recommendation for that reason. we try to tell investors, you have to take a longer-term approach if you are invested in a company like uber and what they are doing, weather on the alcohol side of things, some of the pot names. there are opportunities for them to expand. we do see challenges in the second half of the year. emily: how concerned are you about the potential regulatory issues, given what the biden administration has done with some sort of signature gig workers classification? angelo: we are not concerned as some others are out there. we clearly saw some of this play

out in terms of california, and it definitely weighs on the shares of these companies at the time. we saw the likes of uber and doordash and left eventually be successful on their end of things. our view continues to be the drivers like flexibility that they are being given by the status they have currently, not being employed. we think ultimately there is wiggle room for these companies to have communications with the biden administration, and we do think eventually you will see some sort of clarification and resolution to the uncertainty going on. emily: we are following the over conference call and will bring you highlights. meantime, facebook shares seeing some movement today after the company's independent oversight board upheld the ban on donald trump's account. it was suspended for inciting

violence tied to the deadly january 6 riot at the u.s. capitol, but the board said the indefinite suspension was not appropriate. trump calling the ruling a total disgrace. for more we are joined by our guest. talk to us about what the board did and did not do. they also kicked the can down the road. guest: they put more of the on us on facebook. facebook made the right call in the moment to indefinitely suspend trump. they said facebook accurately assessed that his posting he posed a risk of violence. they essentially came up with a consequence on the fly and did not spell out those types of consequences or responsiveness terms of service, and i think they need to do a better job of clearly outlining a process for

making these sorts of decisions. it's getting facebook about six months to review that decision, and urged them to come up with clear rules. emily: we know that trump has been banned on twitter for good, and i asked the twitter cfo repeatedly if that could ever be reversed, and he has emphatically said no. does this mean in six months, facebook could potentially decide to reinstate trump's account without the another decision of the oversight board? guest: in theory, facebook could decide to restore his account and trump could make posts that continue to violate the terms. facebook could once again send that case back to the oversight board. i think the people who are hungering for a clear decision for the oversight board on this issue were disappointed today. emily: what is the political fallout?

we heard from the former president, he is not happy. we talked about how much power he could have if he got back on facebook to rally his base, to get them to support candidates of his choice. guest: you are right. trump was very critical and other republicans were too. we saw kevin mccarthy vowed to regulate tech giants, alleging this decision shows these companies have to much power. there also was some criticism from the left as well. left-leaning organizations who said the fact that he is not permanently banned, and this leaves open the door for his return to the platform indicates the company needs to be further regulated. there was disappointment on all sides here. emily: what is next? it seems like we are in a

holding pattern, what do you imagine is going on inside facebook with regard to this decision? guest: facebook has a lot of work to do. they are going to have to reassess the thinking and the process behind suspending trump. they are going to have to have conversations about, what are our standards? we saw the facebook oversight board say one of the standards they think the company should adopt is if the post poses a harm. facebook will have to figure out, what does harm look like? and in what they see political situations around the world are we going to intervene? it could be the question of where does trump go from here? how to see continued to harness the power of the internet to drum up his base and continue his influence in the republican

party. he started a blog of sorts that he is calling his own social media network, but i think ironically -- prompting users to promote his posts on facebook and twitter which shows the limit of his digital presence. emily: bloomberg slamming it, thanks so much for your insight. looking at the statement from the president, he got just blames facebook but also calls out twitter and google, saying what they have done with free speech is an embarrassment to the country. i have been listening into the uber earnings call. uber is competent it can achieve profitability by year end. that will be a huge milestone for them. we will talk to the list president of it later this hour. coming up, the galaxy digital ceo, next.

this is bloomberg. ♪

emily: caught in a crypto craze. dogecoin rocketing in value, the latest example of crypto mania. wall street reporter is here to break it all down. reporter: the rise in dogecoin is breathtaking. galaxy coming out with a report saying the coin is a joke getting funnier by the day.

with all of that said, it is a story of one of the oldest altered coins many buyers are holding onto which draws the questions of other altcoins. if we take a look at the cryptocurrency market at large, you will see that the market cap of all of them really does not compared to bitcoin. that is ready institutional interest is, we are talking about more adoption and how far it can go. emily: speaking of big moves in crypto. we are taking a look at the first billion-dollar deal in, this space, galaxy digital buying firm. buying this $1.2 billion deal, what does this bring to galaxy that you did not have before?

what big move for the saliva make? >> second-largest custodian. second only to coinbase. they also have a big salesforce, they cover accounts we do not speak to, a bigger global footprint. we wildly expand our footprint. we are able to cross sell in the same thing with their products. great synergies. far more importantly, we built this company were we invested in all things blockchain. we traded and participated on top of the blockchain. now with the 60 plus engineers, we can build the infrastructure of the future. emily: i have to ask you about this run-up, av this is tied to

elon musk on snl. but my guest yesterday said he elon musk likes doge because he thinks it is a joke. what do you make of this? mike: i think you have to give credit where credit is due. the community that supports doge, most are gen z and millennials, have worked themselves into a frenzy. elon musk has been a part of it, as has mark cuban. we are in a world where because of what chairman powell is doing to money supply and the debasement of fiat, people are finding value in other ways. real estate is skyrocketing in some areas. baseball cards are skyrocketing. what is driving equity prices is also driving crypto. there is a young group of people, almost a spirited nihilistic sense to what they do, that has a start of this as a joke, built a community.

i think it is dangerous to be invested here. it can go down, there is no institutional buy-in. this is a retail frenzy. give them credit. they built an 80 billion-dollar market cap on this meme. there is no development going on in the ecosystem, but it is a pure bet. we wrote a report about being the most honest coin yesterday. it's just that galaxy digital wrote a report on doge. emily: it sounds like you are worried about a number of bubbles in the crypto universe. i know you are hesitant to go short on it, but what will pop the bubble? what should investors be looking for? mike: let's be careful. i do not think crypto is in a bubble. i think there are some coins

that are going crazy, so what happens often is institutional money finds its way into bitcoin. ethereum has had a run. a lot of people invested in crypto and all of a sudden have a lot of wealth, and are like what is next. you have retail driven rallies in coins like ethereum, classic, bitcoin cash, coins with no use case at all, but they have become the hot asset of the moment. these coins will go up in price and will go back down in price. emily: do you think ethereum will catch up to bitcoin in value and how soon? mike: i don't know. bitcoin has a very specific lane as digital gold. we know the market cap of gold is somewhere like $9 trillion. bitcoin is only something like

$1.2 trillion, has a long way to go before it becomes gold. the next year of the dragon is 2024. i think bitcoin could be at gold by them, so it is my lucky jacket. ethereum has a different use case. is what everything is being built on. new architecture for financial services, for ip, and fts. it's hard to understand. we value it like a network effect. right now it is about 350 billion-dollar market cap. it certainly can go higher. it is hard to compare it to bitcoin because it is a completely different use case. >> talk about use cases. i want to dig in on a theory in classic. we have a question from a viewer asking if the crypto community for some reason thinks that ethereum classic as inferior because it was hacked early arm. is that part of the reason?

mike: let's be very clear. ethereum is an amazing project with almost every smart developer working on it, with tons of projects being built on it, nft, centralized finance. it is the ecosystem of crypto. ethereum classic has no real use. it's only going up because retail guys are pumping it up. no one builds on a theory and classic. these in some way are part of the crypto ecosystem, that kind of gives the serious players headaches, because it is like another memecoin. doge, ethereum classic. >> if there is so much interest in these all coins, how do you find value in what else can you look to trade? mike: i don't find value in

them. that does not mean you cannot make money in them. they are momentum driven coins. if you knew what would be the next hot topic on reddit, you can make lots of money. to you but a theory of classic last night, you are probably buying your girlfriend a diamond watch. no institutional investors dissipate in this type of point. it's interesting, it is not market cap driven. some of these things are legacy coins. these communities are really rapid. they are not all rational in the classic sense of being rational. i sometimes call them nihilistic, they are very tribal. when you criticize him on twitter, you almost get attacked. there is a real tribal nature to the defense of some of these ecosystems, which defies logic in some ways. >> there are quite some

adjectives. you have the deal today. what kind of other businesses will you be considering to grow your business as you move towards potentially an ipo? mike: we are already public in canada. we are moving towards this thing in the u.s. in the second half of the year. integrating is mission one. we are suited to grow a bigger prime business. just as exciting, bit coke and build wallets, infrastructure. it would how we rebuild the financial services industry. emily: much more to discuss. more ahead on "bloomberg technology". this is bloomberg. ♪

emily: tesla is about to lose a source of revenue. the automaker [indiscernible] is exiting an agreement with tesla. complying with standards on its own will save the company $360 million. two thirds of that would have gone to tesla. lyft shares plunging. we get reaction from the cofounder and president john zimmer, as well as his outlook for the coming quarter. this is bloomberg. ♪

emily: telecom has recalled its treadmill products and. 's shares fell the most in about six months. peloton recalling not just one but both of its treadmills, this after pushing back against some of the safety concerns. what changed? mark: a lot of people are curious why both models are being recalled.

i want to break that down. the first treadmill is the tread plus. it cost about $4300. that is being recalled because of the child deaths and 72 incidents involving children with lacerations, brain damage, all sorts of scary stuff. the second device is the tread, the cheaper one, it was due to go on sale may 27. that is being recalled because the investigators on this matter received reports from users using the device in canada and other regions that the touchscreen monitor, when you are running, it can make the monitor become loose and fall. if you have the top of the treadmill fall on you, that is not a good situation.

both of their treadmills need work from the hardware department and fix these issues pretty quickly. emily: initially, peloton called some of the warnings misleading, inaccurate, in the ceo saying today that that was a mistake, and they apologized. treadmills have been known to be dangerous, there have been accidents before. what makes peloton treadmills more dangerous? mark: two things. when the initial news came out, i am sure that dozens of other people started reaching out to peloton and different organizations around the world about issues they have been facing. often times people don't desire to come forward unless they had seen other people come forward.

that probably made more people become more comfortable doing so, and lots of reports trickled out over the last couple of weeks leading to this step. in terms of how this rivals other treadmills, of course there have been thousands of incidents over the past several years. one, peloton is a very strong brand. many other companies are not branded that way. if you have an incident on a treadmill of a no-name brand, is not going to be that big of a deal or hurt their image. second, the tread plus does have issues related to the mechanism at the back of the treadmill where it is tending to pick up things. i have a tread plus at home. that is probably the biggest treadmill, i have ever seen in my life and the treadmill uses an extraordinarily heavy material. you knock on it, it feels like you are touching a giant stone. this is a very heavy piece of

equipment. if something gets trapped, not a great situation. emily: a story we will continue to follow. thank you so much for breaking it down. i want to move on to lyft. shares of lyft and hoover falling after the biden canceled a trump era rule that would have eased the ability to legally consider workers as independent contractors. they say it was necessary to extend wage protections while cracking down on employer abuses after first quarter results on wednesday, beating estimates across the board. joining us now to discuss is the cofounder and president. you are seeing a rebound in demand, but driver supply is not quite backup yet. talk about the trends you are seeing right now as we get closer to a full reopening. >> thanks for having me, overall we had an extreme the strong

quarter. we exceeded across revenue contribution margin. on the supply side, this is the reverse of the pandemic beginning with the pandemic ending. instead of demand falling, we have demand rising rapidly. this is a good problem to have. we are increasing incentives for drivers to come back on the platform, we are seeing impact on that. that is going to play out to get markets balanced. something we have had to do in the past, we know how to do, and will continue to manage. emily: we have been listening into the uber conference call throughout this hour. uber saying it is confident it will achieve profitability before the end of the year. you have a milestone of your own. talk to us about profitability from your perspective. >> last week we pulled in our

milestone from end of year, extremely confident in our ability to hit that. we are excited to get tailwinds in the right to recovery. we fully intend to hit the target. emily: how concerned are you about what the biden administration has done? they have not issued a new interpretation of this gate worker rule, but how big of a blow could that be to the overall model? >> what you said is important. the trump administration rule was never implemented, and the biden administration has not announced a new rule or even the start of a new rulemaking process. i see this as an opportunity to refocus the debate. it was very clear in california, a progressive state, that they want independence and benefits. i don't believe the government's comments signal any major change. it does not impact our business.

we are going to continue to work with policymakers at the state level, as well as at the federal level to make sure they hear the voices of drivers to get benefits with independence. i believe over the next couple of quarters we will have additional models like what we did in california. emily: yet, there still seems to be this continued criticism about that model. we are seeing a laws going to effect in different countries. i asked the ceo of uber the same question. the equity that is created by this model, or not. take a listen to what he had to say. >> we think this model of maximum flexibility, to earn the way that you want to, along with some benefits, we think that is the future model. emily: what do you say to the critics who can't shake the belief that this model leads some folks behind, essentially?

>> i would ask them, how they talked to their drivers, what are the opinions of the drivers? those are the workers implicated in whatever law is changed. then i would make sure we are listening to what we are trying to accomplish. we want to add an increase benefits for drivers, while retaining their independent contractor status. i went to our general counsel years ago and asked to add various benefits, with independence, in the labor code from decades ago, benefits were only tied to employment. i think there are a lot of important benefits and protections that the labor movement has 44 and earned for employment, and i think we should bring those over to independent contractors as well. i am not saying we do not want

to do those things. i am saying the ability to work on multiple platforms, to turn on and off the app whenever you want and have benefits scaled with the amount of work is a positive thing. emily: airport rides spike in april 65% compared to january. spring break was happening. are you expecting a roaring summer, and where are you seeing places pick up the most? >> we are projecting that this will be the roaring summer, maybe another roaring 20's as people get back out. i know myself and friends and family are incredibly excited as we get vaccinated to be out and about, to travel. i think travel will be booming again this summer. we want to be there to support our drivers and writers. emily: always good to have you,

thank you so much for stopping what. the roaring summer, we look forward to it. coming up, jessica alba is out with a blockbuster and it is not a movie, it is a public market debut. i will speak to the actress and entrepreneur and the ceo, next. this is bloomberg. ♪

emily: bloomberg has learned that equinox has talked to go public by merging with a spac back by an investor.

negotiations between social capital and equinox which also operates soulcycle is not finalized yet, and it is possible discussions will not end in a deal. but sources say the valuation could be more than $7.5 billion. the company has merged with companies from virgin galactic to open door and clover health. staying with wellness companies and personal care products, the company cofounded by jessica alba closed 44% higher today in its ipo, a $413 million debut, the firm now valued at more than $2 billion. we caught up with them for the reaction. >> i am so grateful for my partner.

when he joined me, we put together a strategy around but we wanted to do, and we worked very hard at making that strategy come to life, and here we are today. thank you for being part of our community and bringing us into your home and trusting us. emily: nick, you now have partnerships with amazon and target, range of products that go beyond baby products. what kind of friends and products? >> we love the fact that we have honest as a lifestyle brand that

can go across multiple categories. that is what makes this brand so unique, and the promise around clean ingredients, sustainability, social responsibility, really resonates not only in the diapers and wipes business, but personal-care business, as well as household. over 34% of new consumers at honest.com came for the skin and personal-care space. if you think about our growth, we are going to be focused on this brand and the ability to extend this brand and a very methodical way. before looking at and exploring anything from an m&a perspective. we are happy with the portfolio we have and the ability to go deeper and wider within the honest brand. >> portfolio coming at an

extraordinary time. i know clorox is having to raise prices, the circumstances and price of goods going up. what do you see in terms of having to navigate bottlenecks of supply chain issues? >> i have over 30 years of experience within this industry, there are always rainy days. but i have learned over the years that you have to prepare for those rainy days. we have three year productivity plans, not only are we driving innovation, but we are also looking at from a three year standpoint, where do we turn around and navigate, how do we drive waste out of the system, so when these input costs are to shift on us, you are prepared for that. that is why when you look at our margin profile, since 2018, we have expanded our growth margins roughly 1100 basis points.

in this past year, we picked up roughly 370 basis points in gross margin expansion. as we look to the future, consistency on the top line, margin expansion, driving good growth. >> talking about good growth and rainy days. what an extraordinary time 2020 was. i know you looked at it from a philanthropic endeavor in terms of donating millions of diapers. i think of you and your story, born to a hard-working mexican-american family. your price point. are you always going to stick for an aspirational client? >> what is interesting is, when you have to types of values we have embedded in honest and you are standing for people's health and wellness, when you are

thinking through the planet and sustainability, and when you have ethical practices across the board, and they're also thinking of diversity and inclusion. people expect for you to offer it at the right price. for us, they want to offer it at the right price. consumers are really gravitating towards that. for us, we are pretty flexible with what that looks like, as long as it continues to drive good growth. we want to always increase our margins and have strong growth. emily: the honest cofounder and chief creator with the cfo. coming up, the untold story of how jeff bezos beats the tabloids. we have an exclusive excerpt from the new book, "amazon

unbound." this is bloomberg. ♪

emily: a new book out next week called "amazon unbound" captures the ceo's decade-long transformation from a single-minded techie to master of a trillion dollar empire. here is exceptional reporting of what happens when he gets cornered by adversaries, is the author and our editor for technology, brad stone. those words yours, not ours. how did -- you talked about how he beat the tabloids, and focused on this very particular time and phase in his life, when

photos of him more in the national inquirer. how did he beat the tabloids? how did he rise above the moment? >> if folks reflect back to that time, they probably think how did that happen? the brother, the saudi's, trump. he did not like the washington post reporting. i think that was the point. that remarkable post in early 2019, he said the motives were trying to be understood and that ami was trying to weaponize journalistic privilege and wrapped himself up in the washington post and said this is the most important work that i do. when i researched this, i thought it was a tema little business book until all of this happened. i found it was a simpler story. it was the brother who sent all of the information to the national enquirer. bezos and his camp might have suspected there was a political

conspiracy, but they cast all of this doubt. sympathy swung to bezos's side. he weaponized the post. he kind of emerged. recently, he does seem to win a lot. emily: but will he continue to win? blue origin announced its first human spaceflight set for july 20. we know he is in a race with elon musk and richard branson. is jeff bezos going to win in the space race too? brad: there is a chapter on blue origin in the book. it has been a remarkable story. 20 years. they like to say step-by-step ferociously. they have the suborbital spaceship. a couple of years ago, they said

they would start selling tickets. they are not winning. it turned out that it was a race and spacex got there first. they are about to launch again and launching into orbit. pulling off impressive feats all of the time. i think blue origin has fallen behind. there could be many winners but there is a lot to prove. emily: then there is winning among amazon's own workers. your team has a new piece out today talking about the policies amazon has for its contract drivers down to their fingernail grooming and body odors. clearly, there seems to be continued agitation on the worker front. many workers are likely happy, but there are also these stories that continue to resurface. brad: this is a complex issue. i get into a quite a bit in the book.

let me try and boil it down. the drivers you see in your neighborhoods, on the highways, pilots, those are not amazon employees. those are contractors. it's not a unique business arrangement. fedex uses contractors. amazon tries to create an orderly experience. they will employ these people, but they want them to present themselves as amazon employees, be safe on the roads, don't want them to sling packages into people's gardens. the story is all about is the subtle ways in the contract they are trying to enforce some orderliness around these workers. the problem is, that makes them more legally susceptible to being called employees. amazon, like fedex will have to fight all of those battles in court. emily: i know we have to order your book to get the full story,

but give us a preview, what is the next chapter in the trillion dollar empire? brad: there is a complementary copy waiting for you. everyone else should preorder, but your signed copy will be on its way. the book charts the last 10 years of the company and all of the crazy things that happened. it seems like there is an episode or scandal or surprise around every corner. it is about how amazon built alexa, whole foods market, the marketplace and chaos with third-party sellers. antitrust scrutiny. as we talked about, the incredible journey where he did transform himself and became a citizen of the world, his eyes opening up to so much. the evolution of the philanthropic efforts. his personal life, and what is going to do next. emily: you do cover all angles. it is a riveting book. i have gotten a peak at my

advanced copy. preorder yours today, that next -- it is out next week. brad stone, thank you so much. his new book is out tuesday. you can buy it on amazon and elsewhere. we will see you tomorrow. ♪ so you're a small business,

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>> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates or its employees. >> the following is a paid presentation brought to you by rare collectibles tv. ♪ >> in 1915, the united states was in the middle of world war i. woodrow wilson was president. in the world of numismatics, the meant director robert woolley decided it was time to replace the barber half-dollar that had been designed by mint engraver charles barber.