announcer: this is "bloomberg technology" with emily chang. ♪ emily: i am emily chang in san francisco. this is "bloomberg technology." coming up, banning u.s. investment in 59 chinese companies.

what it means for the u.s.-china relationship. crypto, i'm talking with the founder of one exchange that trade 60 digital assets. last time, he said bitcoin was going to infinity. we will get his read on volatility. rent the runway enters the retail market. i will speak to the ceo about how the company is positioning itself in a post-pandemic world. first, u.s. stocks fallen on the latest jobs data. take it away. kriti: we have to talk meme stocks first. amc, front and center, roller coaster. look at the chart. down, up, all around. down 18%. this is after the issue. the company is taking this retail opportunity and using it

as a fundraiser after a seven-day rise. some of this did take a cue from the broader sentiment. technology getting the brunt of this. s&p 500 down. the nasdaq is where it took some hard selling. down over 1%. part of that story will be slid down 5.3%, after a story out of china saying tesla orders have dropped by 50%. next, it tends to have an extreme reaction to other tech stocks. tech seems to get her hip. crypto, not so much. in the green today. it looks like it is taking a hit now, but during the day, it was

in the green, rising, even though tech was falling apart. emily: thank you so much for the roundup. investors just got a new way to buy and sell coins in the u.s. kraken has brought their mobile trading platform to users in the u.s., before only being available broad. users can trade over 60 tokens straight from their phones. joining me for more as the cofounder and ceo of kraken. always good to have you on the show. this is a big day for kraken. what is your outlook for growth in the u.s. given the extreme high interest in crypto now? >> it is a super hot market now in the u.s. we are excited to offer a retail market product. this completes the package for us in the u.s. and allows people

to buy directly from their bank account and sell directly into their bank account. that is a huge convenience and something people have been asking for for a long time. the opportunity in the u.s. is awesome. we have been successful, and we are planning for more success here. kriti: the story has been volatility. you told us bitcoin would go to infinity, or one lamborghini or 200,000 dollars before the end of the year. do you think it will still get there? jesse: i stand by that. you can buy for delivery of the lamborghini now. lots of people are buying the debt. i am googling how to sell my kidneys. it is illegal. so much for my body, my choice, but people are getting ready to

go on a diet with bitcoin at these levels. everything happening in miami. the excitement is so hot that people see this great massively. i am not worried about this dip. we have seen this roller coaster over and over. you need an iron stomach to tolerate the right, but the gains are massive for those who can handle it. jesse: is that a wise -- emily: is that a wise idea. i thought people were only supports to invest what they can afford to lose? jesse: absolutely. don't invest more than you can lose. don't gamble your rent on bitcoin. the price is up and down 50% any given week. so you have to think about this investment as a hold for five years to 10 years. don't think about it as a swing trade. people should not be betting anymore they can afford to lose. it is a risky investment. if you look at the chart, 10 years ago, bitcoin was one

dollar. today, $36,000, so long term, it is a fantastic investment. i would not put 100% of my portfolio and bitcoin or put my rent money into bitcoin. emily: and definitely not your food money. we don't want people surviving on cup of noodles, ok? i want to ask you about elon musk. he has had some incredible influence on the ups and downs and i wonder how you feel about one individual having that much power? jesse: it is interesting to see the reaction to one person's tweets and the impact on the market. that shows you the power israel, and that people are increasing the looking to nontraditional figures to get investment device from. we can't trust the guys running

the system now, so who else is smart, visionary, and seems to have the interest of humanity at her, and those guys have proven to be more trustworthy. i certainly would not be making fundamental decisions about my investments from one person's tweets, but if you look at crypto, you can develop a thesis and whether these market reactions to tweets, memes, and even regulators. some country is banning bitcoin, then undoing it days later. i think those things are more subdued and you can ride it out. the people who don't understand are the ones that are reacting to these tweets. emily: tell us what your fundamental thesis is, given we have not had major regulatory action, but the sec has

indicated more regulation is coming? jesse: clear regulation will open the floodgates. i don't see it as crushing bitcoin or the ecosystem broadly. there are players on the sideline, other large investors that are waiting for that level of certainty. there is a lot of gray area now, so people are in this wait-and-see mode. we have no indication there will be a crushing blow to the ecosystem. all the large players are fully regulated. it is nothing new for us, just additional clarity would be really helpful. emily: what are your plans to go public? do you have bankers on board? are you thinking about a spac or an ipo? jesse: we are too large for a

spac. second half of next year. we are in a readiness, preparation mode now and will decide later if we want to pull the trigger on it. things have been weaker than expected for another company direct listing, so whether we go the path of the direct listing or ipo, it has yet to be decided, or even to stay private as an option. i don't think the markets understand the value of these businesses now and may not understand until it is too late and we have replace the legacy systems. emily: you are referencing coinbase's direct listing. has that impacted kraken's evaluation? jesse: a lot of things are driving the price down. it is undervalued now. it is because it is new.

they did a direct listing, so there were no lockups, different from an ipo process. the street still doesn't know how to take management's forecast as conservative or aggressive. there is not much analyst coverage yet. i think a lot of people don't have the vision and see what is coming with crypto. if they did, bitcoin would be $1 million plus, so it is a reflection of the overall sentiment and lack of awareness about what is coming. i think it will be like it was with the internet. there were be people who did not get it until it is too late. there are a lot of things at plate with the price. we look at that and try to understand why is this so undervalued now. i think there are a bunch of things that go into that. it has not deterred us from our

path and we will make the call when we are ready to pull the trigger on the listing. emily: good to know. jesse powell, kraken cofounder and ceo, got to have that iron stomach, like you, i guess. coming up come around two -- coming up, round two from president biden on china. we will have all the details. this is bloomberg. ♪ this is bloomberg. ♪

emily: president biden has signed an order to amend a current ban on companies linked to the chinese military, the

order made up of 59 blacklisted companies, including defense, surveillance companies, a policy dating back to the trump administration. let's bring in peter for more. the order increases the number of blacklisted companies, correct? what else does it do? peter: it moves the authority from the treasury department to -- to the treasury department from the defense department. the hope is this will create more legal stability and fend off the challenges that the defense department ban had been subject to, some of the chinese companies not happy about being delisted. emily: what does this mean for investors? peter: if you are an investor in one of these companies, you have to get rid of it. it takes effect august 2, so no new investment after that date, 60 days from now. if you own shares, you have one

year to get rid of them. that should be ample warning since a lot of the companies are on the list since last november, but it is an example of the tearing apart of the fabric that once knitted together the chinese and american economies. emily: we are talking about defense companies, surveillance companies. what will this mean for relations with china? peter: we have had the chinese authorities saying they are unhappy with this, claiming the u.s. is not following the rule of law, and yet, there is not a lot they can do about it, because the u.s. is claiming this is a national security matter, as indeed, it arguably it is. the companies cut off are the

ones connected to the chinese liberation army and various surveillance companies that have done work such as video surveillance of the population in western china. emily: that is something we will continue to follow as the administration continues to shape its policy. thank you for that update. coming up, twitter goes blue. we are looking at the new subscription service and what features users can expect to get, next. let's look at some of the tech earnings out after the bell. broadcom, docket sign, boosting revenue forecast that beat estimates. we will continue to watch. this is bloomberg. ♪

emily: tesla shares falling as orders in china dropped by half in may. a regulator is recalling 5000 vehicles on faulty safety belt fasteners. we will continue to follow that story. meantime, twitter has a new option, twitter blue, it's subscription service. it is offering exclusive features for removing tweets and organizing posts as part of a push to ease the reliance on advertising revenue. with me now is our reporter who has been covering the rollout. what does twitter blue do and not do?

reporter: it is targeted at the most prolific tweeters on the social media site. for roughly three dollars a month, twitter blue subscribers get access to an undo option, meaning they could quickly recall tweets if they want to edit it in some way. they also get the option to better organize marked tweets into folders and more easily, long threads they may come across in their feeds, and they will get customer service support claims process more quickly. so all those are add on features the subscribers will get for this. emily: anyone who uses twitter regularly has probably sent a tweet they regret or wish they could edit, but you can basically just recall the tweet.

you have 30 seconds before it posts to do that. they don't go so far as to let you edit a tweet, so how much with this change the platform? reporter: twitter users have been asking twitter to allow them and edit option, not necessary to delete tweets, but edit it. twitter has been reluctant to do that. they think it would change the platform. think about the tweets that go viral from politicians and public figures. if those public figures were allowed to edit a tweet, it might change the new cycle and have real-world consequences. twitter is reluctant to do this. they say this option will give subscribers the ability to make

quick edits, so you will set up a predetermined window in which you tweet is not visible and you can recall it, but after the window expires after 30 seconds, your tweet is out there and your only choice is to delete it. emily: how much will this diversify revenue? will people paid for this? i can imagine businesses will love this. there are power users who might be willing to pay it. reporter: it is likely to provide a small but consistent revenue stream for twitter. some of the people you mentioned, social media managers at various businesses whose job it is to manage that organization social media presence, they might subscribe.

journalists might subscribe. people who get their news from twitter all the time and are constantly pontificating on the news that. more than 80 5% of the company's revenue is based on advertising -- more than 85% of the company's revenue is based on advertising, that this is a way to diversify that so it is not so reliant on advertising and is a little bit protected from the ups and downs in that market. emily: ok. we will continue to follow how this plays out. thank you. well, back to work for apple. ceo tim cook sang in early september, employees should be returning to the office for at least three days a week. in a memo obtained by bloomberg, he said staff should be in the offices mondays, tuesdays, thursdays at a minimum.

we are joined by mark gurman. tim cook pretty specific, but allowing more flexibility than some would have thought for a company like apple. what is the plan? mark: yes, tim cook sent out a link that email, the longest email i have read in my life, detailing the return to work of the procedures, encouraging employees to get vaccinated, and he did outline this hybrid work environment where employees will come in on mondays, tuesdays, and thursdays, and have the option to work remote on wednesdays and fridays. he said apples remaining closed retail stores would reopen in june, and he also indicated a lot of staff had returned to offices in australia and other parts of the asia-pacific. this is basically saying it is

time to come back because a lot of people have been back in the office in the u.s. emily: it makes sense that he would specified days, but why monday, tuesday, thursday? mark: that is a good question. i am not sure why it is monday, tuesday, thursday. my assumption would be that right after the weekend, they want people to jump right in and have two days in a row. thursday may be a day in the middle that works best for scheduling. they may have done informal polling. friday is a day that a lot of people in the office and if they get to pick one day of the week, i am sure many people would pick friday, because you want to give yourself time to get ready for the weekend, so they went from a

logical perspective there. the other thing i should know is they are offering two weeks across the balance of the rest of the year of additional remote work, if you get approval from a manager. they said many roles in people who need to be in the office to do their jobs, people working in labs, testing, and in-person meetings, you are expected to be there for a five-day workweek. emily: 30 seconds left. he said this is an experiment. this could change next year, right? mark: yes. this is a pilot program. they will reevaluate it in 2022. what it does not solve are the thousands of employees who want to work remote because they don't want to live in silicon valley. we will see if that gets addressed. emily: right. mark gurman who covers apple for us, thank you so much. ok. coming up, the lockdown lifting,

offices reopening, women getting dressed again. we would hear from the cofounder and ceo of rent the runway about how she navigated the pandemic, navigating a fashion rebound and a potential ipo, next. this is bloomberg. ♪ omberg. ♪

emily: welcome back to "bloomberg technology." i'm emily chang in san francisco, talking u.s. retail and apparel sales, experiencing a huge pickup. we will find out how this is playing out in the markets. kriti: sweatpants, leggings, pajamas, that means we did not have to spend much on work clothes, but we are seeing that reversing.

you are seeing a rebound lately in 2021 as people go out, as people commute, go out. they need new clothes, and that is where we are seeing that show up, in retail sales in particular, but we are definitely seeing that translate into retail stocks. they are doing very well, and it does not look like that's going to stop any time soon as we start to see sales get bigger and bigger, more people going back to work, more growth, and even a pickup in the labor market could help this sector. the luxury side of things has been outperforming even more. who would have thought that some any people would think now is the time to invest in those clothes? take a look at how the stocks are doing. luxury stocks skyrocketing. look at the acceleration. let's see if that sticks around. that will be the real question in the back half of the year. emily: thanks so much for the round up. we will stick with this topic.

when the pandemic hit and lockdowns began, rent the runway faced an uncertain future. the company says it is seeing a rebound faster and bigger than even they expected. to talk about women getting dressed again, we are joined by the cofounder and ceo. thanks for joining us. we are going to talk about the rebound, but first, i want to talk about the journey. the ceo of ambien be sent as a travel company, the pandemic felt like being hit by a tornado. what did it you like as a fashion company when you wondered if women were ever going to leave the house again? >> i knew they would leave the house again, but you had complete uncertainty as to win. it was really a fight to save this business i dedicated the last 13 years of my life to and built alongside thousands of

people who also dedicated their lives. it felt like we were immediately going into fight mode, and that kind of led to us being decisive very quickly. by the time we got to april, we were able to focus on shifting gears and focus on who we want to be coming out of covid and how we wanted to do the business coming out of this. i'm glad we made the decisions we did in march to make sure we had the financial runway to make it, no matter how long covid lasted. emily: talk to us about fight mode and those decisions. i know there were some layoffs and budget cuts and store closures. how did you make those decisions to get to where you are now? >> i was making decisions -- probably dozens of decisions per day, and it was really about shoring up our balance sheet.

it was making sure we were cutting anything in the business that we knew would not be a priority over covid, so we cut 51% of our capex and shifted our inventory model to one where we partnered with our partner brands on a revenue-sharing model, so we developed and accelerated our platform, and we did have to make some difficult people decisions. the cuts we made in other areas of the business, we did not think that would be enough to give us the desired financial runway that we knew we needed. we really believed that covid would last for a very long time, so we were trying to build a runway that would last for years. emily: you say the business is rebounding faster than expected. what are women doing right now? what trends are you seeing? what do they want to wear?

>> what we are seeing is unbelievable. i have been in this industry for over a decade and not seen anything like this. from our perspective, our business is up 100% to where it was in our covid low, and that continues to accelerate day over day. we are seeing dramatic acceleration of geographic diversity of our customer base. we are seeing completely new cases of wider use of rent the runway. they are camping up a dinner, going out to brunch with their families -- they are camping -- they are amping up. it is this philosophy of carpe diem where people are appreciating their lives in a completely different way. we are also seeing double the amount of customers compared to 2019 are saying that the reason they are signing up for a subscription to rent the runway is because they want to consume

or sustainably. we are seeing a real value shift happen, which i think is going to be the greatest accelerant that the economy has ever seen. as you know, rent the runway is based on the thesis that experiences and assets are more important than ownership. i think our data is really a great foreshadowing of what i think will be the biggest growth period ever for businesses and industries that provide an experience for their customers. i'm bullish on hospitality, entertainment, travel, live events, things that enable you to connect with your community and at the end of the day, rent the runway is an experience. emily: you are also getting into the resale market which allows you to buy some of this secondhand stuff that women love to rent. i'm curious how big a market you think that can be as i know you are preparing for a potential

ipo. >> we saw something interesting at the beginning of covid, that our resale business double. we have always offered subscribers the ability to buy clothing that they fell in love with. overnight, we saw that women were very interested in buying more secondhand clothing from us. because we had conviction that coming out of the pandemic, that the secondhand economy would be even bigger than it ever was before, we wanted to position rent the runway as being the only global platform that enabled the customer to have the flexibility to rent, buy, or subscribe. we see this as providing that flexibility to the customer. for us, the resale business increases the funnel of new customers into our business. you no longer have to have an event or want to have a sub script into fashion -- or want to have a subscription to fashion.

emily: gwyneth paltrow recently joined the board. how did you get her, and what does she bring to the table? >> she is a massive consumer visionary. i have known gwyneth for over a decade as we have been building our businesses at the same time, and we just have been building a friendship. we have seen in our data that the world we are entering into in 2021 is not some continuation of 2019. we are entering a world where the customer has completely different values. we wanted to bring on board someone who things about that all day every day like gwyneth, so we are really proud to welcome her. emily: quickly, are you still planning on an ipo this year? >> i read the report yesterday on bloomberg. i feel really appreciative that we are at a point where we are talking about our business being

up 100% from that covid low and our daily's scripture numbers being back to for ahead of where they were in 2019. we are just building a long-term sustainable company, and we are going to continue to make the best decisions for the long-term, so nothing is off-limits. emily: jennifer hyman, ceo of rent the runway, good to have you. good to know you are reading bloomberg. thanks so much for joining us. coming up, snowflake, the rising cloud software giant and 2020's biggest ipo is now under even more pressure than before. the ceo tells me in an exclusive interview, and he also talks about moving to bozeman, montana, and his controversial views on diversity next. this is bloomberg. ♪

emily: it was the biggest u.s. ipo of 2020, but snowflake shares are now down from their december peak. the company reported stronger-than-expected first quarter revenue but wider than expected losses, but it is holding its own as it competes with giants like amazon, google, and microsoft. i spoke with the chair and ceo to get his outlook on growth and keeping up with those great expectations. >> we are a very high growth company at our scale with a valuation to match. there is steep pressure, but we

are under the influence of secular megatrends, things that are fundamentally changing the face of computing. we are helping enable that, but we are also swept up in it at the same time. it is very rare to see the kind of growth that a company like snowflake is experiencing. we see many times that customers go from spending one euro to the next year, that the budgets grow 20x, and that's just crazy. you never saw it in software, and now it is becoming routine. so the perception of this software and the consumption that goes with it is changing. people are adapting, and this is a much bigger bucket than it used to be. emily: speaking of cloud, you compete and partner with amazon,

google, microsoft. they are also trying to do what you do. how do those friendly rivalries shake out over time? >> it makes for an interesting day because you never know if you are going to encounter a partner, competitor, or customer. our relationships with microsoft and amazon have been really productive. amazon has always been productive and is becoming even more so. microsoft is our fastest growing platform, and we are very bullish on both platforms generally speaking, but they have gone through changes over the last couple of years. everybody is getting used to these new models and these strain -- strange, seemingly contradictory dynamics that are showing up. but we have escalation protocols, qbr's, so we have the

ability to work through the friction in these relationships if it one day emerges. emily: let's talk about amazon specifically, aws. are you still winning customers from them, and if so, what customers? >> typically, when we get into amazon cloud, it is already understood, and were it not for them, our company would not even exist. but amazon has many more ways to play the game. they are not lost for opportunities just because they may not be the play to run. emily: do you have any thoughts on andy jaffe as the amazon ceo, given you are a partner as well as competitor? >> i have the highest regard for andy.

i am mesmerized by what he has accomplished at amazon web services, so i can see why he got picked for the role. amalie: you recently moved your headquarters to bozeman, montana. you are joining us from there. it looks nice out there. what is the strategy? >> the strategy was for snowflake to go headquarterless. we thought the notion of a headquarter was outdated. companies do not have to operate from a mothership for the company. we are a global distributed -- global distributor company, and our headquarter is where we connect for whatever period of time. i sometimes say headquarters is between my ears. that is just reality, right? it became extremely apparent to us during the pandemic that we never set foot in our so-called

headquarters anymore for well over 14, 15 months. our headquarters was the same way you and i are talking right now, through a network connection. we also have become much more purposeful in terms of our hiring strategy. we are no longer hiring in a take them where we find them type of strategy. we are hiring for shortened positions in engineering but also administrative roles. we have locations, including india, for operations. we are looking for ability, talent, and economics. the bay area is a heck of a hard place because you are up against google and they spoke for every single engineering higher. -- every single engineering hire . emily: does that mean you are ok with remote work? can snowflake employees work wherever they want or no? >> no is the short answer.

every single employee is tethered to an office. it does not mean you are tied to it, but you are affiliated with an office, and management can call people into the office for meetings. the big change is we all really want the office to be a daytime home. if it is a place you have to mindlessly go if you need to or not with a commute taking up a broad time -- if you need to or not, you have a commute taking up a broad period of time. we still have an association with the office, but you come to the office for specific reasons for specific times. emily: i read in the past your comments about diversity, where you said something along the lines of it's not that you don't care about diversity but you are hiring for the job, and i'm curious if you with that view

miss having certain voices in the room and how that has played out over time. >> we are hiring sympathetic to diversity, but we don't want that to override merit. that is not what our employees want for me because they are there for a reason as well. we do a lot of really constructive things around diversity, creating real opportunity for real people, changing their trajectories, and we love doing that. i'm not the person who is going to make a lot of book pronouncements and have indictments about what is wrong with the world, but we are going to do specific things that help real people connect to opportunity, and we can. for example, we work with universities to help them shape their curriculums so the people can be employed by our company or someone else. these are very constructive,

real things that have effect, and that is what i like to do. that is sort of how i come at this whole set of issues. emily: you are not worried about the pushback from liberal silicon valley? >> i will tell you from my own experience talking to you, many ceo's for -- or all the names you know privately we are of the same mind. just publicly, they find it difficult to be that way. there have been some voices where people are speaking more precisely to what other people are thinking and believing, so i think we need to come to a more moderated, real place. there's really no room for the hysteria and outrage. we are ceo's. we run companies. we have to produce results for our employees and partners and investors and customers, so you cannot get distracted in that mission. when you do, you might as well hang it up. let someone else take over.

emily: just part of my conversation with snowflake's ceo and chair. you can catch the full interview at bloomberg.com. coming up, amc spiraling downward, upward -- depends on the moment. how the so-called meme stock is pocketing over $500 million in fresh cash next. this is bloomberg. ♪

>> you've got the meme stock movement. you have seen a lot of excitement go back into the meme stocks. >> amc and gamestop are the two top stocks in russell 2000 value. >> the speculation is intense. >> fiat value is there as long as the speculative fervor is

there. >> the amc phenomenon -- >> it is very much a social media phenomenon. >> people need to think about what is the fundamental value. what is the stock price relative to fundamental value? >> as we said in january, rocket ships go back to their lunch -- their launch pads. >> buyer beware. emily: say what you want about meme stocks, they are attracting new and professional investors alike. shares plunged thursday after the company disclose their plan to sell shares to cover debt, but afterward, shares moved up again. what is happening here? bailey: amc came out this morning, as you said, with a filing that they have the

potential to sell about 11.5 million shares. hundreds of million shares change hands every day the last few weeks, and then about midday, they came out and said they completed the share sale, so they went ahead and sold 11.55 million shares, profiting roughly $587 trillion in fresh cash, and investors at least initially responded well, sending shares back up to being actually in the green before the stock fell yet again. emily: can retail traders actually save a company that seems -- that seemed doomed just a few months ago? bailey: it seems like it is becoming more and more a reality. anyone who looks at the stock on a fundamental basis seems to agree that it has more issues than i can deal with, but the company announced this evening that they are looking for permission to sell another 25

million shares in 2022. it will be interesting. emily: will they have diamond hands tomorrow? when does the tide change again? bailey: it seemed like today could be the pixelation moment -- today could be the capitulation moment, but the reddit crowd and retail traders on twitter seemed just as strong and proud as they really ever have been. emily: all ride, fascinating. we will keep watching this wild ride. that does it for this edition of "bloomberg technology." nature to tune in tomorrow when we will be joined by the ceo of pager duty, and the ceo of a bitcoin verb for its platform, but that does it for this addition -- this edition of

"bloomberg technology." thanks for joining us. ♪ ♪ ♪

carrier was a guy look, if yours you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the big three. xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network. (announcer) if you've struggled to lose weight, you might think you were born with a slow metabolism, but what you may have is insulin resistance. fat becomes trapped inside your body and it becomes very difficult to lose weight. now there's release from golo. it naturally helps reverse insulin resistance, stops sugar cravings, and releases stubborn fat, all while controlling stress and emotional eating. at last, a diet pill that actually works. go to golo.com to get yours. that's g-o-l-o.com.

haidi: a very good morning and welcome to "daybreak australia." sophie: we are counting down to the asia market open. shery: the top stories this hour -- president biden pitches a minimum corporate tax in an effort to win republican