emily: we will get analyst reactions. plus, the workplace evolution. google now says employees home . zynga's ceo joins me. those stories in a moment, but first, stocks climbing on economic optimism. kriti gupta has the picture. kriti: we are seeing a good day across the board, but tech did not lead. it underperformed the s&p 500, even semiconductors, which have dropping pretty recently. i want to show you this trend

that is emerging when we talk about tech. the yield is trading alongside big tech. we saw a little bit of an uptick in both, and that is a trend we want to watch in both. you really are seeing roku gaining in after-hours trading, up a whopping 7% after strong sales forecast. you also have square reporting, beating revenue as well. to the downside, we have jan meet -- we have jan meet -- beyond meat, but they are expecting growth as restaurants come back online.

emily: we want to focus on peloton and that eye-popping 400% jump in digital prescriptions. that good news as the company also wrestled with the massive recall of all of its treadmill products. how do you make sense of it? obviously, digital sales going well, but the treadmill recall just announced yesterday -- not good. >> definitely not good for peloton shares. we do think that the market needs to separate what obviously is a tragic situation, that being the death of a child, and separate that from the underlying fundamentals of peloton, which we think is a very innovative and disruptive company, and we think the numbers they put out today were really great. emily: do you think the numbers keep going up, even with this treadmill problem. i realize treadmills are still a

smaller part of the overall pie, but the goal was to have them be a bigger part. >> treadmills are half the size of bikes. currently, the majority of revenue is bikes. nevertheless, peloton's growth story is bikes. we think investors need to remember first, this is not peloton's first regulatory hurdle. they dealt with a recall a few years ago. in these situations, peloton has come out stronger. second, children are not peloton 's target market, so this is a very different story in terms of how this could impact demand than, for example, a recall on toys or baby powder. third, we think the tread is actually a very easy fix in terms of enhancing safety.

just two ideas i would throw out there -- they could put a bar underneath the machine or maybe even a sensor, and they could capitalize on the expertise of a wearables company they recently acquired. emily: we talked about this yesterday. it is not unknown that treadmills can be dangerous. there have been accidents on all kinds of treadmills before. what is it that makes peloton treadmills more dangerous than other treadmills, or are they? >> absolutely. these accidents do happen. there have been about 80 recalls of exercise equipment since 2000, and we think peloton is under higher scrutiny because their brand has so much power. they are automatically going to be in the public eye, and also, they do have a higher rate of

entry versus other treadmills, and their treadmill is constructed differently in terms of the bill dynamics and also the hype from the ground. emily: one can assume that peloton will overcome this, like they have overcome other recalls. they have dealt with supply issues pretty much through the pandemic. i know that delivery times are coming down, but what is your guess on when those supply issues won't be issues at all? >> from our understanding from the release, and obviously, the earnings call is happening right now, they very much mitigated those supply chain constraints, and that's why growth margin was under a little bit of pressure. that's because of the investments they made into airfreight and expedited shipping. emily: i will let you get off and listen in to the earnings call. thank you so much for your insight and analysis.

thank you for joining us. now to another story we continue to watch -- that is tesla. tesla has reportedly sold out its production capacity for the second quarter. the electric car maker sold a record of almost 185 thousand vehicles in the first quarter, despite having some issues rolling out new versions of the model s and x, something we will keep our eyes on. coming up, home prices soaring across the country. we will talk to redfin's ceo about how the housing market is shaping up this year. this is bloomberg. ♪

emily: google is giving employees to work from different locations, taking leave as it's come -- as its parent company alphabet prepares to return to the office. i want to bring -- i want to bring in our bloomberg reporter who covers alphabet for us. this is a bit of a turn for google. it seemed like they were going to take the line of alphabet. >> my hunch is they had a lot of employees who were unhappy with it. the change was going to be you would have a few people required to come back into the office and some would be required to

relocate to areas with offices, which google has offices in most areas across the globe. emily: does everyone get this choice? >> there's certain divisions where they are going to want people in, certainly people working on hardware, so i think there will be teams that might be required to come into the office, whereas other roles are going to be more slated to go remote. emily: clearly, this is going to be a talent differentiator. i remember eric schmidt saying there was a war for talent in silicon valley, and that was a decade ago. is that part of the reason, that they don't want to lose people and want to make sure they retain the best?

>> they have a lot of competitors going remote for recruiting and retention, and that is a new aspect google has to think about. google has historically invested a lot in real estate and offices. they have rearranged their offices to operate more post-pandemic, where they have hybrid offices where they can have people talk in video conference rooms as it they are there, so they have invested a lot of time to have people return to the office, so i don't think they have given up on that, but they are certainly much more amenable to employee concerns than they were a few years ago. emily: it will be interesting to see the position they take now. as more companies like google give employees the option to

work from anywhere, the migration from cities to suburbs continues. this as mortgage rates in the u.s. did to the lowest levels in months as more americans compete for inventory that is going back -- mortgage rates in the u.s. dipped to the lowest levels in months. >> america is on the move, so it is like a soviet era supermarket. the shelves are completely empty. i have never seen anything like this. emily: i will never forget your words there. would you still characterize the housing market that way at this moment? >> i forgot that i said that myself. it has gotten worse. not only the lowest level of inventory ever, but the biggest

drop ever in inventory, so once you start this cycle where people are scared to list their home because they will not be able to buy another place, it just perpetuates itself. emily: why is inventory low? is it because people are scared? there was a lot of movement earlier in the pandemic. i feel like three people moved off my street. what happened? >> some of it is we have doubled the rate at which people are buying second homes. you also have really low interest rates, and when someone contacts us about moving up, or someone else paying the mortgage, renting the place out, and america has not been as aggressive about building housing as it has been.

although builders are now going crazy trying to catch up to demand. we just had a lot of chickens coming home to roost where we should have been building a long time ago and now everyone wants to move. we are just trying to catch up. emily: prices are also rising. do you expect them to continue to rise through the end of the year? do you expect them to hold out for the fall, or will it get worse? >> i do not think prices will rise at the same rate. most houses are now selling for above the asking price, which has never happened before. i don't think that can continue, and what we have seen over the past few weeks is that some buyers are stepping back from these prices, but we still have so much more demand than supply that we will be supply constrained regardless. lots of people are touring homes just worried about being able to

win the bid, but if they do, they are still concerned about winning the bid in case another comes in so much lower than they are willing to pay. the only factor that is driving this is that if you are leaving san francisco for boise, idaho, it does not matter if prices double or triple, it still feels like they are paying in monopoly money because people are paying less for the home in nevada, ohio, than they were in california or new york. so much of this is saving money by migration. emily: meantime, you have companies redefining policies. google was going to take a stricter stance and wanted everyone back to the office, and now they are saying a large number of people can work from home for ever they want. coinbase is selling its san

francisco headquarters. they are all remote forever. how do you expect these dynamics to impact the market over the next several years as these policies work themselves out? >> what we have seen in our own data is four out of 10 americans thought they would be able to move away from the office at the beginning of the pandemic, and now, it is six out of 10. we have seen a company like google tried to get people back. they have invested so much in their office, but people do not want to come back, so that will just liberate people to live where they want. what we have found is unprecedented rates of happiness. usually, when people move, they are moving up and have less disposable income, but our survey shows now when people move, they have more disposable

income. they are getting a bigger house for less money than they would pay in california or new york. they are moving to a lower tax base, so they get this better life and have more disposable income. sometimes it means two parents were working and now only one parent has to work. usually when people bid crazy in a bidding war, they wake up the next morning with quite a hangover wondering what they have done, but people now are just very happy after they have made that move, so that is why i think this trend is only going to continue for years to come. emily: rents down quite drastically. i have to ask you -- what is your response? what do you want to say to investors right now?

>> what i said in the earnings call. we nearly tripled market share gains. we tripled the ways in which we are able to get people into homes fast, which is the fundamental measure of how you compete. the business is in a better position than it ever has been. i just cannot be worried that it went down one day, and it is always the day that i go on this show, but it will be up again next week. i know you think that i'm just saying this, but i don't have to say it, and i believe it all the way down. that's who i am. emily: we will have you back any time. you have my commitment right there. redfin ceo -- redfin's ceo.

always appreciate it. coming up, booster covert shots -- will we need one to fight covid variants? and coming up, german chancellor angela merkel rejected a u.s. proposal to waive patent protections for covert shots. we will bring you the latest there. this is bloomberg. ♪

emily: jeff bezos sold about 2.5 billion dollars of amazon stock this week, his first big disposal after offloading about $20 billion in shares in 2020. he still holds more than 10% of amazon stock. and moderna is out with new data

that shows its covid booster shot is working against dangerous variants out of south africa and brazil. the data is still gathering on other boosters. does it mean we will need more shots? i spoke with moderna's cofounder. we are getting new headlines that moderna's booster shot works well against variants in your midphase booster trial. how important is this news? >> i think it is very significant because every version of products that we can advance and show efficacy and safety in is also saving lives, and as the virus changes its tactics, it strikes, if you will, through mutations, so we have a harder time identifying it, so should our vaccine be a

step ahead and boost our immune system to tackle the threat. when we say threat, we think it is one threat, but it turns out to be many threats now because it is diversifying. we have shown yet again as we did a year ago, roughly around now, for the first time in mrna vaccine against covid, and the data led others to follow the way. same here. i think it is the first in that the booster is showing what an increased response to the existing vaccine accomplishes against variants, but also what the variant vaccine does, and it bodes well because as this data comes out, we are also seeing strains in india that seem even more common than the south african one, so the question will be -- how is that going to fair -- going to fare?

emily: does that mean we will need a third or even fourth booster? >> i think it booster perhaps later this year will be important to have. if you need a second or third, we will have to see. where we think this will head is that we have a combination of a flue and coronavirus booster -- of a flu and coronavirus booster. emily: any update on a vaccine for kids eight and under? pfizer has been reporting some progress with their trial. when will my kids be vaccinated? >> i cannot give you any information, but i will say by

fall, both companies should have vaccinations for six months to 12 years. both companies have data after starting on the 12 to 18 range. we cannot forecast, but i do not expect it is going to be very different. we should have an application in teenage years once we get the data released, and that will get the data down to 12. emily: we will get more of that interview with him next week as we highlight biotech and life sciences in the boston region in a special on the economic recovery boston. don't miss it. meantime, we are getting

headlines from the peloton earnings call. the company saying it will postpone the launch of its cheaper treadmill. they will release that when regulators approve that. this, of course, on the back of that massive recall we will continue to follow. more bloomberg after this break. ♪ ♪ ♪

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♪ emily: welcome back. let's get a recap on the markets. >> let's start off macro. it wasn't too long ago, we were talking about the nasdaq at a record high. you can see it is been paired back from the record highs. this brings up questions about the very famous cathie wood art etf.

it was thriving in 2020 when the tech trade was really thriving. i want to show you the outflows from that etf. you have seen a series of outflows lately coming from the risk sentiment turning around. let's dive in a little bit deeper and focus in on one videogame stock, activision blizzard. a fun fact when i started doing markets reporting, i was a videogame reporter. this caught my eye because you tend to see some strong earnings coming out of these videogame companies especially last year in 2020. that's what you saw on tuesday. again today, a hold on some of the gains. after the massive pandemic of 2020, can these stocks hold onto their momentum? that something to hold onto in the days to come. emily: thank you for the personal history.

sticking with gaming, zynga is reporting this week. covid restrictions are starting to lift across the country, the game maker is still maintaining this year's profit outlook. for more on the predictions, we are joined by our guest. the pandemic is weighing, but game usage is staying up. >> over the last few quarters, as we have seen people start to return to work and go back to school, engagement and mobile games has continued to rise. that's because you can take your mobile game with you as you go back to a post-covid lifestyle. it is a flexible game in terms of it is free to play, it's on your phone, you complaint for as long as you want. it's really encouraging to see

engagement continue to grow even as people go back to work and back to school. emily: you also have new game lunches coming up. how long can you benefit from this boost and does it abate and if so, when? >> that's hard to say. as each month and each week goes by, we will see engagement participation and audiences grow. it's exciting to see games like harry potter last year able to establish a whole new franchise for us. this year, we have farm bill three as well as star wars hunters. people are looking for things to do, new games to play, new social relationships to build. our products do a good job bringing all this together. emily: another app and

high-profile gaming news, we have been following the apple epic trial. matt fisher who runs the app store took the stand. what is your position on this lawsuit? >> from our perspective, we are taking up wait and see stance. to see what the courts decide. we have partnerships with both companies. we use unreal engines for our games as well as we have been great partners with apple for many years. we are picking sides, were going to wait and see what the courts have to say. emily: what is the impact of apple's commission structure on zynga? are there times when you think this is unfair or do you think it's fair for the service that apple provides? >> if you look at any of the platforms we are on whether it's android or ios, the payments

that we make to those platforms are returned for services and the value they create. sometimes, you feel good about that relationship and other times, you are scratching your head. we talked our platform partners directly, point things out, try to make adjustments in the types of promotions and marketing and technical support that we receive so that we are receiving the maximum benefit possible for the payments we make. it's an ongoing relationship. it evolves over time. what you see in this case is the question about what types of services are provided, how valuable are they and how opened do they need to be? the good news from our perspective is that any shifts will likely be a tailwind for our business as opposed to any other friction we might encounter. emily: why is that? is there an outcome you're hoping for? >> it's too hard focused -- forecast right now.

with not all the witnesses having testified yet and the evidence being presented, it's difficult to project what's going to happen. it is outside the area of expertise. we look at the issues at hand, if platforms open up more, if there's more options for publishers to be able to build relationships with their customers, it's not a big thing from our perspective. emily: you are also buying a platform called chart boost. this at a time when apple is cracking down on tracking practices and making it more difficult to do that, focusing on user privacy. how do the changes that apple is making impact zynga? >> we had been through this a little bit already with the european rules that have been implement it with gdpr as well as states like california have implemented specific privacy protections for players. protections of our players privacy is important to us. it changes some of the rules for

how we go out and acquire users, bring them into our services and our games as well as advertising to make products available to them. a company like ourselves, we are at scale. now, our relationship by purchasing this gives us the ability to see the market much more broadly in terms of what is happening in terms of acquisition, how they flow through to the games and to be able to observe our players better from a gaming services standpoint. as these rules adjust and change, we will adjust accordingly, but we are confident that these adjustments will present more of an opportunity for zynga long-term than a headwind. emily: we have seen a lot more schoolchildren using an integrating gaming into the curriculum. i wonder if you have seen more of that going forward. parents and schools have often

been resistant to it. how does that change going forward? >> most of the customers for zynga are busy adults. the majority of our players are women. don't have a lot of businesses the kids are participating in, but i am a believer in interactive entertainment as a form of entertainment that challenges your brain, develops your thinking, build social relationships. it's exciting to see this kind of interactivity come into the learning process because i believe it will lead to a more engaging and rich experience for the kids. you have to get your homework done, so you have to limit the time the kids play at night so they can focus on what they need to get done from an education standpoint. if it's well-managed, they can be a wonderful part of how people build out relationships and how they enjoyed themselves in the free time they have. emily: always good to have you here.

while in part thanks to the pandemic, the videogame industry is now bringing in $180 billion in revenue per year. videogames have invaded schools as we discussed. gaming live streams -- press reset. ruin and recovery looks at the industries darker more unstable side that can swing from the euphoria of a hit game to a studio closing and mass layoffs with a failed one. joining us is an author who covers the gaming industry for us. i'm excited about your book. i had a look at my advanced copy and i really enjoyed. what are you going to tell us? >> thanks so much for having me and for the kind words.

-- bleak but optimistic because it looks at the industries problems and even though it is as rich as you say it is, it seems to be unable to keep its workers healthy and happy and satisfied and fully employed. many of them are constantly burning out and leaving the industry for more lucrative ones. i think it's optimistic because the book looks at ways in which things can change. kit presents solutions, opportunities, one of which being remote work which is something we all got to experience. others being unionization and things like that. the book looks at a bunch of stories of games, studios closing and what happens to the people involved. how they felt about it and how they recovered. it's all based on first-hand reporting, interviews with the developers and it will resonate with a lot of people out there. emily: as you mentioned, the gaming industry is bigger than hollow with. people don't realize it is

bigger than tv, bigger than movies. if this industry is bringing and so much money, why's it so unstable? why are so many of these gaming companies not wonderful places to work? >> it's a good question. a lot of the case studies that i analyze in this book, sommerfeld games or companies that ran out of money and could not make it work because it's a risky business. it's a business where you have to invest tens of millions of dollars and many years the people working just to compete with the biggest games. companies can fail at that. even the successful studios can sometimes shut down. i profiled studio that was known for making a series called bio shock that was extremely successful. even that studio for a variety of reasons found itself shutting down. essentially, the director of the studio said he didn't want to do it anymore and it led to the

publisher closing. sometimes it's mismanagement. sometimes, the risks are too high. often times, it is that a company is making a game and it's successful but maybe the next game is profitable but not exponentially profitable. it's not wildly successful enough to keep the people around so they move some spreadsheets and numbers around and they decide were going to lay off a whole bunch of people. a few months ago, we saw activision laying people off. at the same time, the minute this was happening that activision was laying people off, its ceo was on an earnings call saying it just had its most profitable quarter ever. unfortunately, that is the reality of the games industry. emily: i'm sure that doesn't do a lot from around. the gaming industry has also

been historically very male-dominated in terms of the players and customers and also the people making the games. we just heard the ceo of zynga say that a huge number of his customers are adult women and industry is changing. i wonder how much it is changing . what percentage of gamers are women now? what percentage of game makers are women? >> the last thing i saw was that about 45% of game players are women. that needs to be contextualized because that includes zynga games, mobile games, facebook games, a lot of games that have larger female demographics. still, we are talking about a world where women are playing. long gone is the stereotype of the teenage male basement dwelling gamer. games are very clearly bigger

than that. they are part of our culture and the industry has changed to support that. what we have seen is, it's such a strong young industry. it is going through going -- growing pains that other industries went through a while ago. hollywood is hundred years old. gaming is only 40 years old. in the 80's and 90's, game development was a lot of men. at that point, it was largely men eating pizza and drink and geico. since then, we have seen legitimate companies hr departments and there is still a lot of growing to go. as you know very well, it's the same exact situation in tech. it's a global problem. emily: i was just going to say,

it sounds a lot like silicon valley. a young industry with a lot of growing still to do. definitely check out the book. jason has a new book out called press reset the dives into all of this fascinating lord. -- lore. coming up, ibm unveils the world's smallest first two nanometer chip that could beat the performance of all existing profits -- products. we will speak to the director of research next. this is bloomberg. ♪

>> we have a lot of work on 5, 3, 2 nanometers. we are talking but the next generations. emily: the ibm ceo talking about the next generation of chips. it is here. ibm now introducing the world's first two nanometers chip. roughly the size of a fingernail that could potentially transform the industry. this as the global chip shortage stretches into its fifth month. it impacts sectors ranging from cars to smartphones. this is a huge leap in technology. how did you do this and what opportunities does this open up? >> it is a big deal, because it's not very often that we make a break into technologies. behind the scenes of our computers and our phones and our

cars and every gadget that we have, we have semi conductors and chips. at the bottom of them, there are these transistors that are the basis of the digital world. what we have achieved now is the fruit of four years of work, of hundreds of scientists and engineers working in new york in a facility that has been the product of $15 billion of investment over the last gate. it is quite a feat of science and engineering. in the end, what it's going to deliver for us is proof that we have the next future note for the semiconductor industry beyond the 7, 5, 3, and now two nanometers. emily: who is going to manufacture the chip and when will it hit the market? parks >> the way we conduct is due and echo system. in the albany facility, we have

manufacturers, materials companies, then manufacturers like samsung. we announced earlier this year that intel is going to be joining as well collaborating with us in semiconductor research. what happens when we develop this is bilaterally, we enable this technology elements that makes it viable to each one of these parties. so the equipment makers can make the equipment and the manufacturers get the license to scale it. you will see the technology over time scaling to large makers like samsung and others. emily: when will to nanometers chip be in a product that i might use? >> i was mentioning before that seven nanometers in production. if things go according to plan,

late 2024, maybe 2025 is when you will start seeing this. what that will enable is all of the people that can benefit from chips to design against that technology and get those chips are brocaded. to give you a sense of the value that it can provide, a phone, a state-of-the-art smartphone that we all use today, with this two nanometer technology, you can deliver the same performance but with a battery will now last four days because it is so much more efficient. or if you wanted to maintain the same performance, you could make the phone 45% better in terms of performance. emily: that is absolutely fascinating. we will be watching as this technology develops. it would be wonderful not to have to charge my devices for

four days. i am excited about it, thank you. coming up, small retailers using amazon to catapult them into global brands. a first-hand account of that strategy, next. this is bloomberg. ♪

♪ emily: e-commerce is booming. big firms are buying small sellers on amazon with a goal to launch them into global brands. we take a closer look at this phenomenon. >> small retailers on amazon.com are being bought up by the dozens with the help of billions of dollars of funding from investors. ♪ even before the pandemic, online

purchasing was on the rise. e-commerce is booming, but it has been accelerated by the coronavirus as consumers stuck at home drove up digital sales. meanwhile, thousands of brick-and-mortar stores shut down. a new class of companies is vying to become the next procter & gamble. these aspiring giants are going about it by purchasing sellers on amazon. some of the biggest names in finance like j.p. morgan chase are putting their money behind these companies. it is a trend that cuts across private equity, investment banks, and venture capital firms. these bought up firms to the tune of $1.4 billion the first quarter of this year. most are seeking deals behind the scenes. the pitch is that they can help

smaller retailers expand their business including taking them international while finding synergies on the back and in areas like logistics. some of the key names -- one leading firm has purchased 100 amazon businesses with a portfolio of more than 15,000 consumer products. fundraising hasn't stopped. in mid april, another group raised $240 million in debt to buy up retailers on amazon. it had $400 million on amazon revenue last year. the funding seems to be accelerating, there is no end in sight to the race for these deals. for more content like this, you can follow us on all of your favorite platforms. emily: that does it for

bloomberg technology. tomorrow, we will hear from the ceo of blue apron. i'm emily chang. this is bloomberg. ♪

haidi: good morning. welcome to "daybreak: australia." i am haidi stroud-watts in sydney where. counting down to major market opens. shery: good evening from new york, i'm shery ahn. haidi: these are the top stories is our. sources tell us president biden may proceed with trump's china investment ban, ignoring calls to rollback restrictions. australia