♪ caroline: from bloomberg world headquarters in new york, right here in london, i'm caroline hyde. joe: i'm joe weisenthal. caroline: the s&p 500 very little down, but the action is back in meme stocks. joe: the question is --"what'd you miss?" caroline: it was a rather ho-hum day for usa.

the overall market's board, but there is still plenty to chew on. once again, we will be discussing some of the key movers on an individual basis. zinio is one we will be digging into in particular regarding its spin out. on the other cited the equation, are we seeing perhaps a selling in the purchasing? prices are falling in march. the case-shiller index jumping 13% from the same time last year. meanwhile, consumer confidence maybe worrying about these price inflations. before we dig into housing and inflation, we've got to talk a little more about what happened to zinio's stock after it spun off iac. joe: iac, the internet

powerhouse, spinning off from zinio. the ceo of iac joins us now. we see the stock having a bit of a slump. what is your take on the market's initial read? >> it is a weird thing. we did not do an ipo of vimeo. we did a spinoff. we never sold shares to the public. they just started trading. today was the first day they started trading. the stock price is down is because there was an issue in market trading for a few days where there was no volume. i think 14,000 shares traded a day ago at one price, and everyone is using that as a reference price. the business is doing fantastic as a result.

the last shares were sold work to private investors. that was four months ago, and that was that valuations 30% or 35% below where they are now. we think that is pretty good. we feel pretty good about it on behalf of people who have invested in vimeo and iac. for employee's and us, it is a homerun. caroline: i'm looking at capitalization. $7 billion is where the market cap is. as you say, you just raised funds in excess of $5 billion. it is down 30%, but when people look at the valuation and the growth and the competitors, what is the story now? >> vimeo does not really have a

direct competitor. there are people who compete with pieces of it and do a really nice job of it, but in terms of an all-in-one solution, there is not a direct competitor. our business is a beautiful product for things like livestreaming, creating video, things like storing video, posting video, sharing video to all the places you want to put it. most other video platforms are either proprietary, meaning you make the video on their platform and keep it on their platform and show it on their platform, or are featured on wherever the owner wants to put that video. joe: what is the longer-term strategy? also, i marvel at iac's consistency of spin outs and how many have been successful. the longer-term strategy for vimeo, what does wall street need to understand about it?

>> when you think about who needs a website, mathis may be a similar analog, any business that needs an analog needs video. no matter what, there's going to be employees in multiple locations, and you're going to want to reach an external audience in multiple locations, and vimeo is the tool for that. unless you want to be on someone else's platform, hosted on their platform with their ads and experience, if you want to own that experience for your audience, vimeo is the tool to do that. we look at the size of that market. it is relevant now for every business to be creating video,

sharing video, telling their story with video. people used to tell their story only with text, and started with text and pictures. now if you tell the story, you tell that story with video, and tools are available to make that easy to make you look good. caroline: is it kind of the case that timing is offer such a spin out? in terms of investors currently questioning growth stories? they are worried about inflation . is it possible they may have gotten caught up in the narrative and therefore, you just need to worry a little bit less about the share price? >> i don't know about the day-to-day movement of the share price. the only thing i worry about is people operating under the view that vimeo's debut today was anything other than a success.

first day of trading, it was a really exceptional outcome. day to day trading, i do not worry about except the narrative of what is in and what is out. operations of the business will matter to us, if it's going after big market, delivering a fantastic product for the audience, satisfying customers, and growing revenue and growing long-term earnings, and vimeo is in a nice position to do that and do that for a long time. joe: mid tech has been out of favor, growth has been down the last month or so. is that something that is on your mind? >> i worry zero about that. i actually look forward to those opportunities, those moments because they generally create opportunity for iac. no, i don't spend a lot of time worrying about it.

caroline: what is the next opportunity? >> that is a very good question. that is something i spend a lot of time worry about. we are always going to favor businesses where we are already in the category. our publishing business is doing phenomenally well right now. we are looking at other businesses in publishing. i'm hopeful we can find some opportunities there. we've got a small business we are building in finding jobs and matching workers with employers, and looking for opportunity there, i think that is a really exciting space to do some transformation from off-line to online. we can find some new areas, too. caroline: thank you very much for joining us. meanwhile, coming up, home prices in the united states surging. bidding wars across the country.

this is bloomberg. ♪

caroline: one of our key focus is today -- u.s. housing market. got use of all these hot ticket -- hot takes on the market. joe: i was going to say i'm not into takes, but i'm into takes. i'm into hot takes. the data is extraordinary because we see all the themes on display today.

prices in the u.s. soaring on this speed of gains combined with the pace of new home sales disappointing because it is too hard to build them. caroline: i like to advocate the people should read what joe weisenthal puts out there, not just on twitter but what you write. you turn your attention to takes in the market. and then the redfin ceo promised any seller that she would name their firstborn after them. joe: what has it come to that you cannot even get a house if you promise to name your firstborn after the seller? >> there's an incredible shortage of homes to buy. young families looking to buy homes, low mortgage rates going in, and this is where we have been. i do think it is one of the surprises of the pandemic that for a year now, the u.s. housing

market has been as hot as it is. it has been a shock that this has run so hot for so long. caroline: now we start to see the cracks really laid there where builders cannot build them fast enough. we are seeing people just not buying to the same extent because they cannot afford it. where will we start to see the break? >> you are seeing that with new-home sales being down. that's first-time homebuyers not being able to find affordable properties in the market. there was a demand for larger homes, home offices, that has been going on the last year, but in some ways, this rally has been fueled by vacation homes, and i think you are seeing first-time buyers who are getting out there on 6, 8 operatives, 10 properties, not being able to find anything, and you wonder if those families are

renters. maybe this is a general shift in the united states. this is a lot of money sloshing around, shaping housing, and i think that is a reason why pricing is experiencing this. joe: is there any easing of it, or do we just have to convince a bunch of people that we will come back in a year or two and by all of this? >> builders have come in and build on the high-end, so first-time buyers were going to face a shortage anyway, and now it has just gotten more acute. builders in some markets are slowing down orders. when lumber is going up as much as it was, builders are saying, why lock in a price right now when i can wait two months? maybe this home be worth 20% more? single-family zoning is a thing that everyone supports better zoning until it lands in their

backyard. regulations get in the way of this, too. this owners just cannot go fast enough right now to keep up with demand. caroline: i think most houses now on the market for 17 days. what has been the key statistic that you have read that just kind of blew your mind? >> one thing i saw was that 29% of homes are bought with cash. that is a record high as well. investors in this market, a ton of foreign money has come down for single-family rentals. people who spent the last year not going to restaurants and bars who have the money for down payments, a lot of people being able to buy homes with cash, and they could go back to the millennial family. maybe they had their second kid. they are looking for something outside phoenix or in a texas market, and those homes just do not exist, and i think we are

experiencing a fundamental shift in the u.s. housing market. carol: meanwhile, coming up, with all the talk of crypto mining of late, we talk about the global semiconductor shortage with ron ventura. we dig into more supply chain issues. this is bloomberg. ♪

>> the requirement for public and private partnerships to be built in ways we have not done historically is so important right now. if we are talking about artificial intelligence, semiconductors, next generation for 5g for sixg, these are areas we should be planning together

and building for the future -- next or 5g or 6g. joe: going to discuss more, the chief technology officer of a cloud service company right in the middle of the action trying to acquire chips to serve your clients. tell us how the explosion of mining in all different types of coins has made your industry that much more competitive. >> it is pretty wild. before 2021, we were able to source supply on pretty much a next-day basis. it has changed pretty dramatically since right before chinese new year. it started with cpu's and with things that were supposed to be delivered tomorrow extending

into chinese new year. it spilled over into hard drives, but ethereum is not the only killer at the moment. caroline: let's step back a moment for those that are not chip aficionados. what type of chips are there that mining cryptos need? >> in 2018, it was purely chip shortage, but now it is gpo's as well. it seems to be a confluence of events between the economics of crypto mining and the spreading of the club. our onboarding pipeline here for the next three to six months is full. we cannot deliver to clients fast enough, and we are constrained by corporate. joe: so people can understand

your position in the ecosystem, there are lots of companies that do cloud, and everyone knows about amazon and so forth. how do you differentiate yourself, and what is the type of hardware you need to acquire to deliver that service? >> we call her sells specialized cloud. it's everything from visual effects and innovation to ai machine learning and model training and service. we are here for setting up thousands of gpu's concurrently, setting up tens of thousands of cpu boards, so our clients demand scale and we are constantly pushing to deliver that to them, and it has gotten a lot harder over the past six months. caroline: there's a lot of handwringing going on from the administration. on the way down, there's been meetings between auto companies, chipmakers. suddenly there seems to be a desire to take a step back from the global supply chain, start

making chips in europe and the u.s. do you think that's the way it goes? >> yeah, but that will have a longer-term impact. all these initiatives are going to be great once the long term, but right now people cannot get what they need to build their business. joe: let's go back to the specific chips and the broadening of shortages. lately, it is like hard drives and hard drive prices are soaring, like regular storage. what is going on with that? >> that is one that surprised me back in january. we are a pretty big buyer of hard drives. in january, we started getting questions from manufacturers asking what we were using them for. i was like, what are you talking about, they are hard drives. about a month and a half later, we saw a new network lunch, and

that has turned the market on its head and sent prices through the roof. it is definitely creating a lot of problems for legacy components for classic components -- or classic components in the space. caroline: do you know enough about them to say why they need these hard drives, why they need certain types of chips? what is it about them? >> filegoing is actually using it for storage, whereas chia are using them for what they call group it space-time, which is where you create a plot on a regular cpu and move it to your hard drive, and it sits there dormant for gets checked every once in a while, and you're supposed to be able to use that to mine for the next several years. it is great in concept, but

definitely falls short in reality. joe: this is something interesting -- you also mine. talk to us about how mining fits into the corewe've business model. >> whenever we do not have the effect artists for machine learning or simulation companies using our gpu's, we immediately fall back to mining ethereum for any of the 4 assets available to us. it has allowed us to be able to meet client needs that i don't think clients really have outside of the big oligopoly type push. caroline: from a revenue stream perspective, is mining more important to you than the actual nuts and bolts of what you do?

>> it has. we look over the last 24 months and feel bad about our cloud growth numbers because our cloud growth has grown, but our mining revenue eclipses that. one of the things people do not really realize is that a theory of -- that ethereum on a debt to reward basis is bigger than bitcoin. the last 12 to 24 months have been awesome for us to build our platform. joe: fascinating conversation. you can hear more of that conversation on the podcast i host on friday on apple, spotify, and everywhere else. caroline: i like how his life

has been sort of turned upside down by crypto mining. that does it for "what'd you miss?" joe: "bloomberg technology" is up next. have a great evening. this is bloomberg. ♪

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>> from the heart of where innovation, money, and power collide, in silicon valley and beyond, this is "bloomberg technology." with emily chang. ♪ emily: i'm emily chang in san francisco, this is "bloomberg technology." coming up, the washington dc attorney general slaps amazon with an antitrust suit, accusing the behemoth of forcing third-party sellers to