>> 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, and this is "bloomberg technology." coming up in the next hour, an intolerable level -- that is how a cybersecurity firm describes the volume of ransomware attacks in the u.s. while testifying on capitol hill. we will hear from the ceo. plus, crypto concerns. we will speak with u.s. senator elizabeth warren about what she thinks about the flood of digital currencies in and out $2 trillion market. her take on what regulation should look like. and this company's shares jumping 20% on the first day of trading. we will hear from the ceo. all those conversations in a moment but big news out of first, gamestop. not only did the company report first-quarter earnings, but it named a new leadership team and it has details on an sec probe. our kriti gupta has been following the story and a new ceo for gamestop, a longtime amazon executive. kriti: absolutely. we know that ryan cohen has been gung ho about being able to compete with amazon.com, and he kind of got his wish list. take a look at this. the ceo and cfo are both amazon veterans.

that is good news in this big e-commerce vision. keep in mind that investors don't have the full picture of what that vision looks like, just that we are on the way. one piece of good news for the folks who were expecting gamestop to enter this new digital age. net sales for the quarter topping analyst estimates. i'm going to skip to a bullet point, right to the may sales numbers, increasing by a whopping 27% year-over-year. keep in mind that a year ago, no one was going to malls, no one was spending this kind of money. that is a very crucial number to see taking momentum. that is the good side of things. let me take you to the bedside, some bittersweet news here. let's start from the bottom up. sec trading, that is the probe they are looking into, looking at that gamestop bid, see if there is anything sketchy going fun in that business. they actually turned out to request some information from gamestop.

there are not the details on what the requests look like, but they could be hitting more details in the earnings call which is going on right now. this is weighing on the stock puts market. they are issuing up to 5 million new shares sales. remember amc took a hit from , this a few weeks ago, so seeing that gamestop is seeing the same reaction, not a great sign for this particular meme stock, but let's look at the other meme stocks, and for that, here is katie greifeld. katie: and other day, another meme, and message boards and ending the day 30% higher, lighting up the and ending the day 30% higher, but yesterday's favorites not faring as well. contextlogic clover health, , wendy's, all ending in the red. that 13% drop for wendy's is its worst since march 2020, a day after it hit a record high. one of the reasons you are seeing so much turnover is that traders are trying to capture magic that we saw with the original meme stocks. amc is up over 2000% this year. gamestop falling after hours. but still up 1500% this year as

well. it is a similar story with blackberry. emily, if you are a well-diversified meme trader, if you are invested across a basket of meme stocks, for example, you are having a great year. bloomberg's index of retail trader favorites is 30% higher in 2021, crushing the s&p 500's 13% gain. emily: and gamestop investors today are euphoric about this news. just reading the tweets. katie greifeld, thanks so much for that update. kriti gupta as well. at the top of the cyber news charts, the cto of this company detailed the gravity of the cyber threats facing the nation and the pressure these criminals used to extort their victims. >> the majority of today's intrusions by financially motivated threat actors involved multifaceted extortion. threat actors will apply immense pressure to coerce victims to pay extortion demands in the seven-eight-figure range.

emily: carmichael spoke at the homeland security hearing today, where he was also joined by the ceo of colonial pipeline, joseph blonde. i would like to bring in the ceo of cybersecurity firm fireeye for more. what is the solution to stopping these attacks? how do we do it? kevin: first off, emily, thanks for having me on the show. you have to have risk a repercussion to this. you don't hear a lot of folks say great we will stop the , efficacy of these attacks, but that is just playing goalie every day. you also have to impose risks, because even a blind man if they can go outside every day and shoot is going to hit something sooner or later. we have attackers operating with impunity with no risk of repercussions. let's impose risks and respond as a nation to the threat. emily: how much do you think the fact that the u.s. got the money back from the colonial pipeline

hackers will deter them from doing this again? kevin: i don't think it will deter. it is good to see it happen because we are making it more expensive for them on offense to steal money. but we got part of it back and i commend the effort to do that, but we are going to be reading about these ransomware attacks every single day. we cannot play goalie all the time. i think getting the money back is another means to shrinking the target area of how to monetize computer intrusions. emily: does that mean the attacks are going to keep on coming? we were speaking with a guest last week who said that the hackers don't care what the target is, they just want money. they are coming out of russia and russia isn't stopping it. effectively we are at war with russia. would you echo that sentiment? kevin: i don't know if i would use the phrase "war," but there is a bargaining chip now. at the very least, all the ransomware activity coming out of russia is condoned, period.

you can operate out of there and it is a safe harbor for these criminal actors. at some point in time if you want to be part of the global economic community, you have to abide by certain rules, and some of those rules would be, don't harbor the criminal element as obviously as russia is doing today. emily: so, what would you expect to see, given what we have seen so far in the first six months of the year in terms of the volume of the attacks in the second six months of the year? kevin: the heads of state will have a conversation and i think there is a chance there will be a reckoning here where we can come up with some kind of arrangement where maybe there is some dialing back of the ransomware. may for once we will see russia taking action to stop of these activities. but there might be a tit-for-tat or a trade that needs to occur there. i am a cybersecurity expert, not a diplomat. we cannot solve this problem

with technology alone. you have to have diplomatic ways to solve it, economic ways to solve it, and operate outside of just the technical domain. emily: ok, so on that note, i know the goal is to never be breached, and we need to shore up our defenses, but once you are breached, do you think that the victims should pay the attackers or not pay at all? kevin: you know, i think every ceo doesn't want to pay. but at the same time frame, it is a more complex situation depending on the industry you are in and what is at stake. if you are a hospital and you have a bunch of iot devices, stop working, and these are devices critical to the health of their patients in the hospital i think you will have a , different risk calculus than some other organization. it is not as cut and dry as most people think. there is a lot of folks who are saying, "we will never pay the ransom," and then when something happens they realize wait, let's look at some of these things. what is the impact on customers? is there anyone in harm's way?

is that health and welfare of any of our customers or employees at stake here? there is a lot of risk, but i think everybody starts with, what if we don't pay? sometimes due to deliberation, people come to a conclusion that maybe paying is the best thing for customers, employees, and quite frankly, the nation. , emily: when you look at the threat landscape, what scares you the most? what is the worst-case scenario on the horizon? kevin: i would hate to give the bad guys ideas. i'm not sure it is so bad that we have lights out overnight. i do know this, the next modern war is going to have a cyber component to it, and i am not sure everyone can accurately predict the effects of what will happen. emily: so are we in a new form of modern war? earlier you said you did not want to use the word "war," but is this what we are seeing?

is this a new kind of warfare? kevin: i don't know. it is definitely going to be a new component of war, but the silent intention of nations is seen in cyberspace first. i can't tell you what we're seeing is the predecessor to a war. wherever money goes, crime follows. that is the internet. wherever information goes, espionage follows. that is also our technology and the internet. wherever command-and-control goes, communications go, that is where cyber warriors go. that is also across the internet. the things you do with proximity, you can do from 10,000 miles away in safe harbors. so the bottom line, all conflict, whether geopolitical or armed, will have a cyber component, and as a nation, we have to be more coordinated and better prepared for it. emily: kevin mandia, ceo of fireeye, thank you so much for that. coming up, massachusetts democratic senator elizabeth warren on bloomberg television

and radio. on the evolving crypto space. she will be joined by my colleague joe weisenthal. i am emily chang. this is bloomberg. ♪

joe: welcome back to "bloomberg tech." i'm joe weisenthal. i want to welcome back for more senator elizabeth warren of massachusetts. their was a hearing today on digital currencies. senator warren, thank you so much for joining us. let's start with the digital currencies that are going up and down every day a lot. you started the hearing with some pretty harsh words for them, saying they failed to deliver on the promises of a more inclusive financial system, they are volatile, they are not good for spending. in your view, do they need to be regulated further? and is there something specific

in mind that you have two sort of bring this area under control better? sen. warren: this was our first hearing on digital currencies, and we had a chance to talk with experts and bring in a lot of senators around it. but the bottom line was what is happening right now in cryptocurrency, like bitcoin and dogecoin, it is wild west out there. and it makes it not a good way to buy and sell things and not a good investment, and an environmental disaster. so, do we need some regulation around this? you bet we do. joe: in your view, whose purview should this fall under? when you say we need more regulation, do you have something in mind or a conceptual framework for how regulators should approach this burgeoning space that you say kind of has a wild west vibe? sen. warren: well, right now what we need to do is the next round of hearings and investigations, since these

cryptocurrencies have gone everywhere, then that means we need to bring in the people who have different responsibilities. so when we are talking about the investor aspects that people are buying bitcoin for speculation, if you were buying stock for speculation, you would be protected by rules against things like pump and dump. but not when you are buying bitcoin for speculation. we need to talk with the sec about that. on the other hand, when we are talking about the question of bringing it into our monetary system, and banks either holding bitcoin, that is the kind of issue that we need to talk about with the bank regulators. there are a lot of different pieces to this, and i think the answer that we saw today is that right now, our regulators, and frankly, our congress is an hour late and a dollar short, and we need to catch up with where these cryptocurrencies are going. joe: let's talk about the idea

of a digital u.s. dollar, the idea that someone could hold a digital dollar in an online wallet or wallet on their phone in some way. lots of talk about it. still kind of unclear to me of if something like that were to be implemented, what the goal would be. what do you think about the idea of a central bank digital currency, and what do you think the purpose would be if the u.s. were to at some point launch one? sen. warren: that is one of the things that came up in this hearing multiple times today, is that i understand how a digital currency would work instead of the united states government printing dollar bills or minting coins, it would, for example, pay a social security check by just putting digital money in your wallet. but the question was what is the problem it is trying to solve? [laughs] because, as we all know, most of what happens today is digital in

the sense that my bank does not hold those dollars physically, right, it has a number in a ledger. and when i transfer money to pay off my credit card, they make a transfer that happens electronically. so we really have to think through this. on the other hand, we had some really thoughtful experts who are saying, you know, you may want to integrate this into other systems of payment, for international payment. and there are questions about whether or not the united states maintains competition with china that is looking deeply into digital currency. of course, the chinese want to be able to track all the purchases of all of their citizens, something we are not looking to do in the united states. i think the answer is on the front edge. and here is what troubles me, is that cryptocurrency, the private version, has swept the earth. digital currency is not really out of the starting gate yet.

and so you have got this situation where we kind of need to figure out, are we going to try to give digital currency a little boost here, but we really need to keep an eye a digital currency while we are doing that. joe: i want to ask you a question, and i think it applies both to cryptocurrencies, and the idea of a national digital currency. i am glad you brought up china and the idea of monitoring everyone's transactions, because right now if you and i wanted to transact online, we would do it through, i don't know, paypal or something like that and it would be an entity that could look at it. do you think private transactions should be preserved in some way? this is the thing that people worry about, with physical cash disappearing, the idea of transactional privacy. is this a value that you have that in some way we should find a way to continue to allow that to exist in the digital space? sen. warren: so, i understand the idea behind privacy, and i don't want the federal

government tracking how i spend my dollars. on the other hand, think about the key feature cryptocurrency, of a cryptocurrency, and that is secrecy. it is pretty clear right now that that secrecy really is helpful for drug dealers and for crypto warriors who are hacking into systems around the world and demanding ransom, because it is a secret way to make payment. the united states has dealt with this traditionally by saying that what happens in checking accounts is secret until someone goes before a judge and gets an order to be able to look at a checking account. that means the checking accounts are not a great place to transfer money between drug dealers, they are not great ways to collect ransom. this is one of the concerns about cryptocurrency. there is no equivalent to be

able to say, ok, you can be private nearly all the time, but not so much that you have created a haven for the criminals. joe: just want to remind viewers and listeners, we are speaking with democratic senator elizabeth warren of massachusetts. senator warren, another theme that runs through all of this -- of course, a lot of talk actually in progressive and conservative circles, frankly, is corporate power and particularly tech corporate power and the power of the big four, apple and facebook. one of the things about digital currencies is they are these decentralized networks. do you think that this should be something that potentially you could be enthusiastic about, the idea of these digital decentralized networks that are not necessarily under the control of any one company? sen. warren: wow, you took a turn i did not expect you to take there. i thought you were going to go in the other direction. and say, it doesn't make it at all nervous if amazon and apple is collecting an incredible amount of private information

not only about your purchases with them, but every place you spend every single penny? that makes me really uneasy, and it makes me particularly uneasy because there is no consumer protection in any part of this. right now if you use your credit card, you and i both know that if you get scammed, the most you lose is $50. right? if it gets lost, the most you lose is $50. not so if you use a cryptocurrency, one of these, as you call it, decentralized, but we could also call it wild west, no rules, no protection kind of currencies. when you load the information of all your purchases with other information aggregation that we know amazon is engaged in, we know apple has engaged in, and look at the power that is becoming concentrated in one

company and the ability to be able to exercise influence politically, economically, that really makes me uneasy. joe: a lot of people are uncomfortable with this level of corporate power for all of the reasons you just described. it seems like the main tool that people talk about for going after it is antitrust, but it's not the classical sort of monopoly pricing power issues that you have just laid out. is there a better tool out there in the toolkit to address what you have identified than the sort of antitrust approach that is commonly taken here? sen. warren: so, there are two ways to think about antitrust first, and one is to say let's take antitrust back to its roots, where big is a problem, and it poses a threat economically and it poses a threat politically. so that's one part.

another is to say maybe it is time to add it to our antitrust laws to make sure that they are covering the kind of platform approach that has created so much more concentrated power. but the other is to say, hey, regulators, get up and get in on this. we need the sec, we need the fed, we need others to say if you are using this like a currency or you are using it like an investment, then those agencies have a responsibility to step up and make sure that we have some basic consumer protection, that we don't threaten our entire economic system. joe: all right, really appreciate you joining us, massachusetts democratic senator elizabeth warren. much more coming up on bloomberg television and radio, so stay with us. this is bloomberg. ♪

emily: let's take a look at some of the other stories we are following. amazon's advertising rates jumped more than half in may from a year earlier, a sign that the rising profits should continue as it takes on facebook and google in the digital ad market. the rate hike may give lawmakers and regulators momentum in an effort to make amazon pay higher taxes. sticking with amazon, the tech giant may replace jp morgan as the issue are on its popular cobranded credit card. amazon express and synchrony are said to be among those bidding on the portfolio. in recent years, banks have loaded up their cards with big perks, but in the world of cobranded cards, it is harder to turn a profit when revenue is shared with the merchant's partner. coming up, a successful trading

day beer by card issuing platform marquetta gives it a whopping value of $16 billion. the founder and ceo joins us to talk about the big day. later, president biden's $52 billion effort passed by the senate. it is a hefty pledge, but will it be enough? we will get insights from an analyst. this is bloomberg. ♪ wanna help kids get their homework done?

well, an internet connection's a good start. but kids also need computers. and sometimes the hardest thing about homework is finding a place to do it. so why not hook community centers up with wifi? for kids like us, and all the amazing things we're gonna learn. over the next 10 years, comcast is committing $1 billion to reach 50 million low-income americans with the tools and resources they need to be ready for anything. i hope you're ready. 'cause we are.

emily: welcome back to "bloomberg technology." i am emily chang in san francisco. marqeta jumped on its debut in the nasdaq, closing above its ipo. following a wave of listings by fintech firms, marquetta counts square as its largest customer, accounting for 70% of net revenue in 2020.

joining me now is the founder and ceo, jason gardner. how are you feeling about today? $16 billion company at the moment. jason: and feeling great. it has been a wonderful day. thanks for having me. emily: talk to us about what makes marqeta unique. have seen a number of payment companies go public last year and in the last few weeks, quite frankly. what sets marqeta apart? jason: 2015 is when we found a product market fit. we delivered infrastructure so that and deniers and developers and managers could build card products they. could be physical, plastic cards, and they found that it sold real problems for them and allowed them to disrupt entire industries. in fact, doordash uses that for dashers.

they reduce fraud. instacart uses it for their shoppers. and now by now and pay later, we operate in 36 countries. it has been an incredible journey thus far. emily: speaking of disruptions, any plans to get into crypto, more companies are making crypto reward cards now, it is becoming increasingly popular? jason: we power the coinbase card. . it allows you to spend your crypto wallet at the point-of-sale. we also power the coinbase equivalent in canada. absolutely. today we saw el salvador legitimized crypto as an actual currency to spend. we will see a lot more of that. the payment ecosystem does not allow you to spend directly at the point of sale, so marqeta has stepped in powering coinbase and i think we will see more of those. emily: meantime,, square is your largest customer. we heard jack dorsey announced

last week that square is considering building a bitcoin hardware wallet. is that something marqeta would have a part in? jason: square is a phenomenal customer. their success is our success. we focus on that successful relationship with technology innovation and suddenly our ability to operate at massive scale. they are truly a shining example of modern card issuing. they certainly use every inch of our platform. emily: given that you have a leg in the crypto space does that expose you? are you concerned about the volatility? douyu and the company face any -- given that not only are we seeing volatility, but we have yet to see any regulation and as you just heard from senator warren, there is lobbying for the u.s. to put a stake in the ground here. jason: we are all talking about crypto and different forms of

crypto and the blockchain. it will get regulated. we don't take risks in the volatility. we create the last mile so that consumers and businesses can spend crypto at the point-of-sale. but the fact that we are talking about this, we are going to see regulation. we see it as another form of currency like a dollar or a euro or a peso or a won. we are just creating the ability to spend it at the point-of-sale. visa and mastercard have gotten into that stable coin game. we see this as another form of currency. it will certainly get regulated and we would see potentially in the future it being spent at the point-of-sale. emily: how big of a growth opportunity could crypto be for you along with the other growth opportunities out there? jason: the opportunity is immense, six point $7 trillion of carded volume in the u.s.,

$30 trillion globally on cards. we are processing only $60 billion in the u.s.. only 2% of our revenue is from outside the u.s.. we already have a tremendous opportunity within cards only. when you think about it global money movement, our ability to serve companies that want to get into crypto space, we see the opportunity is tremendous. one thing that will never go away is the change of value for consumers and businesses and other forms of payment. we will be there helping them with our technology. emily: jason gardner, ceo and founder of marqeta thanks so much for joining us. jason: thank you, emily. haidi: back to the financial markets. we have two pieces of news

in the world. ed ludlow has been following this. ed: the philadelphia semiconductor index is down 4/10 of 1%, falling for a third day. at one point intel was the biggest points gain or. it ended the day at 0% change. often do you see that? no action. the story of the day is about a potential listing, another stock that could during the fall, global foundries ramping up its road to an ipo, hiring banks to target. $30 billion listing at some point over the next 12 months. already has morgan stanley in the bag, why not add bank of america, j.p. morgan chase? really impressive. this is a company that has been at the heart of the global chip shortage because it is the smallest of those third-party players that make chips on behalf of those that designed them, behind the likes of

samsung. it is an american company and a lot of attention of what it can do to ramp up domestic production. look at the philadelphia semiconductor index. . this was tuesday when braden and the senate made that $52 billion commitment to improve u.s. semiconductor capacity. a lot of questions, including whether $52 billion is enough. the market asking a lot of questions, is bad and even doing enough to bring domestic capacity back to the u.s., emily. emily: all right, ed ludlow, thank you so much. sticking with president biden's $52 billion chip ambition, we are joined by an analyst at raymond james. is $52 billion enough? >> our position is it may not even be needed, and the reason why is the shortages that we were going through in the

industry right now are not a function of the industry not wanting to invest. there is plenty of private capital that is willing -- available and willing to invest in the semiconductor industry. right now it is because no one knew that demand was going to be this strong 12 months ago. we are all coming out of covid. so really the shortages we are having right now are a function of not being able to predict where demand was going to be, as opposed to the industry not willing to invest. emily: do you think the chip shortage than is overblown? chris: it is not. it is significant and is likely to persist through the end of the year. but you are already seeing steps taken by the industry to add capacity.

we will have additional capacity in the back half of this year and into next year. it is not a situation where the industry is not willing to put the money in place. they are bringing capacity to the u.s.. the problem that you have with semiconductors is it takes a long time to add that capacity. last year in june, i year ago, the automakers, probably the biggest deficit in terms of supply right now, they were canceling orders. so now they have obviously switched. by the end of last year, we realized demand was going to be better than it turned doubt the original forecast. but it takes more than a year to add capacity. the next six months, we will probably be in a tight supply situation. but it gets better in 2022. emily: we will be in an oversupply situation at that

point? we have heard this happens in cycles, will there be too much supply as a result of these efforts? chris: that is the magic question. semiconductors have historically been a cyclical industry because of that, it takes a year to put capacity in place. we have no idea where demand is going to be a year from now. when things are tight, the incentive is to add more capacity, so you overshoot. what i can say is right now, we have a number of semiconductor ceos at virtual meetings two weeks ago and the consensus was this is the biggest gap between supply and demand that some of them have seen in their entire career. it remains to be seen whether the capacity, whether it will wind up being too much. that is one of the concerns we have with government intervention. when government intervenes, it sends capital to places that are not the right places to be.

we worry that if government intervenes to much and starts to put incentives in place to add to production, it could lead to overcapacity at some point. emily: which companies do you think will benefit the most from this $52 billion and ultimately, do you think the u.s. will be a world leader in making chips at the end of this, or not? chris: the company that is positioning themselves most directly in this is intel. they talked about building a foundry business, where they would build semiconductors for other customers in the united states. there are some issues with that, the other side of intel is that their manufacturing technology has fallen behind. a review is that intel needs to get back on track for leading in manufacturing. that is a prerequisite for having a foundry business. there ceo is questionably the

best person for the job, but the first task is getting manufacturing in place, and then building the foundry business. the natural investment cycle of the industry will eventually take care of this. one of the concerns is that there is so much semiconductor manufacturing in taiwan. there is obviously a geopolitical risk there. what we have seen with tsmc, that does most of that manufacturing, they have agreed to bring a fab to the u.s.. customers like apple identify that risk, and it is a legitimate concern that global supply needs to be diversified. it doesn't necessarily have to be in the u.s.. emily: ok, chris caso thank you,

so much. facebook will allow employees to keep working from home if their job can be done remotely. in the memo, employees were also told that there salaries will be adjusted accordingly. coming up, lyft is adding a new electric bike to its fleet and hope of drawing commuters from their cars. we will talk about what is already on the streets, and whether people will adopt to this new method of travel. and gamestop is declining after hours after reporting its first-quarter results and announcing a shakeup at the top. we will continue to follow this story throughout the show. this is bloomberg. ♪ he show. this is bloomberg. ♪

emily: as workers trickle back to the office, lyft aims to help them get there. bikes were launched in san francisco this month two years after lyft launched models that got caught up in several accident reports and lawsuits. joining us to discuss is laura blatz. why is this e-bike better than the last one, and why didn't the last one work out so well? laura: if you have tried one of lyft's e-bikes in the last year and half or so in san francisco, new york city, chicago, they do

actually work quite well but it is true that there were some speed bumps in the initial rollout. this new e-bike the company says has been fully vetted and tested for international standards and actually comes with easier to assemble parts so that engineers are able to attend to any issues that come up. other than that, it is quite eye-catching. it is painted in the same super bright white color you will find with traffic signs or pedestrian crosswalks, and added safety boost. pretty neat that there is no gearshift or, the bike is designed to automatically adjust your speed or torque, so you get that added -- when you are cruising down the street. emily: how did bike sharing workout in the epidemic?

we know that bloomberg offloaded -- uber obama uploaded part of its bike business. were bikes booming or not? lara: kind of a mixed bag story for the broader mobility industry. there was a lot of industry activity, sales and mergers going on. you mentioned uber dropping its jumpbike subsidiary. but the market is reemerging now as vaccines rollout people return to the office. a number of new startups coming to new york city to get a piece of the action, with people still not taking the subway nearly as much as they did pre-pandemic. a lot of the commuters there are looking for alternatives. they also may not. that is part of the experience in san francisco and other cities with bike sharing systems. bike-share did not see their

normal ridership in the pandemic with travel demand down, but as economies reopen, i think these companies are hoping to capture a slice of that. emily: what is the rollout schedule like? laura: the first 100 bikes came out earlier this week part of the multi-week beta-test. the company will be trying to work out any remaining issues with the bikes and the plan is to roll them out in chicago and other cities including new york the end of the year. emily: all right, bloomberg's laura bliss. appreciate it. laura: thanks for having me. emily: el salvador is laser-eyed, quote", for crypto. the country welcomed bitgrail

with open arms and became the first country to adopt the currency as legal tender. that means it can be used in any transaction, apart from businesses that don't have the technology to support it. el salvador's president previously said bitcoin will help to penetrate the country czechia love banking rate. gamestop named a new ceo, but who is he and what does he bring to the job? the answers, next. this is bloomberg. ♪

emily: a group of blank-check company's run by chamat pop up

-- run by chamat palihapitiya have. tapped sofi. each of the group expects to offer 5% of its shares via the sofi platform. and sofi is chamath-backed as well. gamestop has a new ceo. he will serve as cfo let's get more with. ed ludlow. you have been listening to the earnings call. what do we know about the new hires? ed: they talked about how the ceo has seen the period of rapid growth at amazon and they wanted him to bring that same experience which gamestop is trying to move away from, from brick-and-mortar. a similar story, the cfo, another amazon alum, cfo at

the amazon prime business. they want to draw on that experience. it comes at a time when there is an exodus of middle-management from amazon. they are not well-known guys though they do have experience. in the cfo case, he was at procter & gamble before amazon. there is high anticipation around earnings, but the big takeaway is the new man at the top. it was also the current ceo last call and he kept it brief. emily: ryan cohen is getting his way, he wants gamestop to compete with amazon. i guess this is one approach. gamestop also disclosing an inquiry from the sec? ed: the sec made contact on may 26, they want information from gamestop about the movement in their own stock and their companies' stocks as well. gamestop is up 1500% so far in

2021. a number of wall street analysts stopped covering the stock in recent months. this rally has been driven by the meme stock traders. staff from the sec have been scouring social media for months, trying to work out what has been going on. they said at the end of their statement that this inquiry is not expected to impact adversely. emily: we have been waiting for this call, this earnings call for some time, to see what ryan cohen has had up his sleeve. you have been listening in. what have you heard, there is a lot of momentum behind gamestop, a lot of love it and there are a lot of folks who say this stock is not. worth it ed: for all the frenzy around the stock, it was incredibly adult earnings call. 11 minutes. the real focus of the chairman was on financial prudence.

the company paid off its debt early and boosted its balance sheet. it focused on the transition away from brick-and-mortar stores that sell video games, consoles and memorabilia to a much wider range of services. it will offer 5 million shares at the market, which is a typical way of doing it, a steady pace throughout the trading day. it says it will use the funds from that transaction for general corporate purchases and the growth initiatives it is undertaking. this was a real set piece, prepared, the dollar earnings call. that wasn't too many fireworks rather than the sec investigation being disclosed. emily: we will see if these two new executives can give investors what they want not just what they want to hear. ed ludlow, thank you. that does it for this edition of "bloomberg technology." tomorrow we will be joined by alexis ohanian the cofounder of reddit it will be talking about his new projects.

thank you for joining us. i am emily chang. this is bloomberg. ♪

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