>> from the heart of where innovation, money, and power collide, this is "bloomberg technology" with emily chang. [no audio] -- forecast.

what it could mean for the ongoing chip shortage. penalties for dds, china continues its crackdown with regulators seeing the ipo as a challenge to beijing authorities . how badly could it hurt investors in the company? elon musk confirms that both spacex and tesla own and why they are continuing to pump and not dump. let's see how the markets are reacting. lots of numbers will link out over the last hour. how is it shaping out? a whopping near 16% gain for snapchat, the shares are skyrocketing and continuing to climb. 293 million, that's how much the company reported last quarter,

just shy of the estimates from analysts. seeing them beat in terms of ad revenue and active users with twitter getting a higher bump. still up a whopping 5%. nothing shabby there, but i want to point out that the revenue has jumped 74% year-over-year, the big advertising lot that we saw last year, it looks like they are getting a comeback. intel, not coming out with great numbers as they deal with capacity restraints, doing it in a cost-effective way and it is really their data revenue that goes back to where the shares start to go into the red. zooming in on social media companies, that seems to be the after hours story.

snapchat and twitter, respectively. the orange line will be facebook, google, other social media companies around the world and twitter has been outperforming the benchmark as they lead the group forward. competitors, with good earnings, it translates into some positive share action. you may start to see that ad revenue is coming back and it could possibly affect their bottom line, emily. emily: all right, thanks so much for the round up. more on those results with dan morgan, the senior portfolio manager. a few things not working in their favor. sales falling short of a server chip business up, down

year-over-year. what's your take away? >> i'm more in -- optimistic than i think the street is. they also beat in their data center group. they did almost $6.5 billion in revenues and what we have to do is take a step back to realize that intel is in transition right now. they are trying to get into the production delays with those 10 meter chips. one that comes to mind is the chip that's been delayed into the second order of next year. they have been slow in terms of bringing out ships and i think that is why the street is kind of like your guidance in the third quarter isn't what we expected but i still think that there position going forward has to involve more time to ramp up

and take advantage of the strength i'm expecting coming out of the infrastructure as a service area, the data center space. emily: pat has laid out a vision, how optimistic are you that he can deliver? >> i hope so. you are right, the two new plants in arizona with the possibility of acquisition in the space, they will be in there with taiwan and samsung. you have the department of defense with a lot of companies in the u.s. saying look, intel, if you are serious that you want to build foundries here, will we use you to build out the chip? if they can pull it off, it would be unbelievable for them along with the return on growth i'm expecting in the data center. it's a lot on the plate them right now, but they are at a

crossroads. emily: indeed. the industry is at a crossroads. we are continuing to deal with this chip shortage. there are all different kinds of chips. they all have different outlooks . is there anything you are seeing in the numbers that give you more clues about when the shortage more broadly will let up? >> you are right, at the beginning of the year i thought it let up by now. it's been pushed out into the first and second quarter of 2022 , so many sectors, it's unfair to say it's just a shortage. obviously the automotive sector is having the most difficulty and the biggest delays. swinging into other sectors that are not as bad, it's on a company by company, sector by sector basis. from the aggregate aced on my estimates, things are coming into full throttle by the second

quarter of 2022 and hopefully we won't be hearing about these shortages anymore. emily: in the meantime, i want to turn to twitter. the numbers look good. what is your take away on these results? the last quarter was more bumpy. >> it was a great quarter, 87% increase from last year, above my estimate. it came in with daily average users that were 200 6 million. the estimate was 205. it has been a real sticking point for them and they have had trouble growing the daily average users. you mentioned the snap, estimate 291 million. to give you the next board look

at facebook, their second quarter is looking at 1.9 billion daily average users. twitter had a good number and it beat on the estimate for revenues, it looks like to me they are finally starting to be a little bit more successful targeting small businesses, getting into video to increase the amount of time that people spend on their site, it all leads to more advertising dollars and more revenue for them going forward. all in all, emily, the report looked strong. emily: what are your thoughts on twitter spaces? clubhouse came out swinging, but the numbers haven't been looking good. looking promising but not adding the kind of traction i'm sure twitter would like to see and i wonder, is that a big potential growth area for them or not? >> i think it is.

a year ago they were going to get into sports, telecasting sporting events. they have done a lot of things to try to get not only the daily average user up, but to increase the amount of time the people are on their. 30 minutes for use for facebook, twitter was one or two minutes. the new product and service you are talking about, anything they can do to get people to spend more time on it will drive the revenues. you are right, the jury is out regarding whether it will be successful for them. emily: we are getting some headlines from my colleague's interview with pat gelsinger on the phone. he says he believes chip shortages will bottom out and that the industry will take one year to two years to catch up. what do you make of that? >> he knows better than i do.

he was in the trenches. i was more optimistic than that. again, emily, it's really sector specific. the auto industry is likely to be the last to get there. but other sectors, like memory, pc chips, artificial intelligence, all these different sectors, they might come along a bit liquor, but obviously he is going to know more about how the patterns are coming, when they are able to deliver, and how it is restricting -- contracting. i would listen to his forecast. emily: again, i will be speaking with pat l singer and nick siegel tomorrow. tune in for that, i want you to stay with us, we have more to talk about, including what to expect next week.

as we had to break, not a cyberattack. tweeting that the service disruption that affected several widely used websites on thursday wasn't to the result of a hack, it was instead a bug update. among those impacted in the outage were amazon, airbnb, home depot, and moving swiftly and afternoon trading. this is bloomberg. ♪

emily: all right, getting back to big tech, more companies scheduled to report last -- next week.

wednesday it's paypal and all come. and facebook. thursday, amazon. back with us is the senior portfolio manager at synovus. microsoft, soaring past the expectation. what are you going to be watching? >> key figures will be the infrastructure software service and the data center product. i'm looking for that to grow by 50%. the intelligent cloud is the cloud group everybody focuses on, looking at strong growth in those areas. then there is always gaming and other services. one thing that could be a surprise is their overall operating service, windows based on their pc. we have had good strength in terms of data showing volume

growth in the space being very strong. wouldn't be surprised if it trickled in like it did in the last order and i would expect good numbers coming out of microsoft going into next week. emily: meantime, cyberattacks seem to keep nipping at the heels of microsoft. the u.s. blamed china, china denied this. i spoke to a guest last week about this raft of issues and he called it pandemic. take a listen to what he had to say. >> we have a pandemic, but there's another one. cyber. it's going to be there with us. at the same time, i think what is really now much more in the consciousness of people is the level of attack increasing and

the need for a response to be top-notch, also increased. emily: microsoft purchasing risk iq to help them build up their defenses and protect their customers, but how big of a risk is this? >> it's big, microsoft is so dominant in the desktop space and in so many areas where they interface on a daily basis. it's interesting that they would call it a pandemic type situation and elevate it to that level. i saw the news on that and i don't know if frankly that's going to impact the next earnings report, but it is obviously something we have to keep an eye on. hopefully it won't lead to anything that is a privacy issue like we saw with facebook. we will just have to monitor the situation and hope fully like said, they will be able to stop

it from being a beige -- big issue going forward. emily: you are also looking at facebook who has been dealing with reputational issues. user quotes continue to happen, despite bad press. what are you expecting? >> facebook is like the weevils, you knock them -- weebles. you knock them down and they get back up. i was expecting 1.9 billion in terms of daily average users. i would still expect north of 55% to 60 sent in you are -- year-over-year add growth. twitter coming in on the advertising revenue joe -- jump, i would expect to that into google, coming out next week.

i would expect big year-over-year advertising rates to go up for facebook and google . >> continuing to listen to those intel earnings calls and we will be all over those results next week. i will be speaking with the ceo of intel tomorrow, as well as the cfo of twitter, joining us at 11:00 a.m. wall street time to talk about their third-quarter forecast and second-quarter sales. a couple of hours later i will be speaking to the twitter cfo about the better-than-expected forecast. china is considering serious penalties for the ridesharing giant ipo that went public last month.

the cyberspace administration had pushed back and among the possible penalties, affine fine, suspension of operations, and the introduction of a state owned investor. shery ahn, this seems unprecedented. what are the penalties that chinese officials are considering? >> it could be as bad as delisting, so we know it isn't surprising that didi shares hit a record low after the listing in june and coming at a time when the cyberspace administration has pushed back on the administer -- on the move in the u.s. they are not necessarily against the ipo, they are against the data practices of didi. sources telling bloomberg that some of the penalties could be

harsher than what we saw for alibaba, two point $8 billion. nothing is set in stone right now. we have to wait and see how this will happen and how the chinese administration could react. y: they are down, how could the impact hit their growth out again what does it mean for investors? >> it's one of the worst performing ipos this year, right? when it comes to the growth outlook, if the crackdown entails how they use consumer data, it could inhibit their ability to officially grow the or mobility and introduce new products. bloomberg intelligence saying that when it comes to domestic markets, they are probably going to be fine. they are expecting strong expansion in terms of transaction in the platform and

when it comes to the international market, they are burning cash, recruiting drivers among the global players. the takedown on those many programs could impact third-quarter growth. >> meantime you've got a lot of companies wanting to go public in china, but what does it mean for those other companies in that ecosystem? >> the outlook is souring for them, right? one of the medical data companies was forced to pull -- pull the -- forced to pull the plug as we have 3700 companies in new york this year raising $13 billion and the shares are mediocre at best, averaging below the ipo prices. these are the worst performers on the screen, and all truck

alliance. it's not surprising there the csi 300 underperforming on the broader u.s. markets. saying it could be a good opportunity to invest in chinese tech. emily: we will have to see how this plays out. thanks so much for joining us. ok, coming up, the future of shopping could be sooner than you think. after the break, find out who instacart is teaming up with as they look to get groceries to your door more quickly. snap arising in late trading after increases in daily active users. it seems that investment in content and creative tools managed to lure young users and the advertisers trying to reach them. this is bloomberg. ♪

emily: we are watching senator amy klobuchar make -- introduce a bill to make online platforms like facebook and twitter legally liable for misinformation about health issues, including covid-19. this coming less than one week after president said that misinformation about the vaccine is killing people, in his words. it has no cosponsors at this point. teaming up with a tech startup to equip warehouses with robots, part of the effort to speed up

delivery and cut costs as instacart plans to build new standalone warehouses and fulfillment centers. plenty more is still ahead on "bloomberg technology," including bitcoin. the cryptocurrency rebounds after comments from elon musk and kathy would like this. >> the idea that it's a hedge against confiscation of wealth and it can take place in a myriad of ways. inflation, especially hyperinflation in emerging markets is the primary way.

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emily: this is bloomberg technology. let's get another check on the markets. intel, twitter, snap moving after the bell. what are you watching? kriti: i'm going to take the macro point of view because you did see a lot of positive earnings stories. you saw this tech outperformance but not enough to make winning full gains in the s&p 500. closing up to 0.2 percent. the nasdaq 100 gain is three times that in percentage terms. we did not do so well is the

small caps. we went a healthy rally. -- we want a healthy rally. today, you got the tech performance. yields a bit lower. a small bid for treasuries. a defensive day. let's look at what else performed well. i want to show you the new york faang index to highlight the point big tech was at the top of the leaderboard. then your faang index holds a lot of the social media companies. the likes of apple and cheney adrs in the green. what did not do so well, the chinese adrs. the broad index we like to look at. regulatory scrutiny. a lot had to do with the didi sentiment. we might see a turnaround going into tomorrow because there has been so much selling pressure in the chip space. that is something to wait and see for. speaking of a bounce back when you're seeing selling pressure, i want to end with bitcoin.

this is going to be a one month chart. there has been this downtrend for bitcoin until the last couple days. i am not sure if that is indicative of a longer-term trend. we will have to wait and see. emily: thanks so much for giving us the big picture. at this weakness b word event elon musk confirmed spacex owns bitcoin. chop -- top that off with kathy wood and jack dorsey chiming in. >> i think the resilience is there. i think it is important to have fun as well. anyway folks can express themselves, that goes back to the main idea, how do we create native currency? anything that goes toward the path, whatever fun we can have along the way, that is going to

make it a more enjoyable and people want to use it. emily: cryptocurrency trading around dirty $2000. joining us to discuss the outside influence of muska on bitcoin -- of musk on bitcoin is met. every time elon musk opens his mouth on bitcoin, it moves. >> elon is an iconic leader and a smart person about the payment in fintech. people are smart to listen to what he has to play. -- what he has to say. he has thought about bitcoin a lot. he sees its potential for the future. long-term, the story about bitcoin is more than elon musk. even the impact of these comments are bigger than him. it shows he was concerned about environmental issues. investigated them. he seldom bitcoin is a net positive -- he saw that bitcoin

is a net positive. i think it is positive in that light. emily: ethereum rally to more on his could -- rallied more on his comments. what do you make of that? >> i think it is news he has allocation to ethereum. it is moving to a more carbon neutral way of securing the blockchain. it has a major technological upgrade coming in august that is going to make it more like a consumable commodity. it is going to make it easier for individual investors to understand what ethereum is. emily: talking about catalysts, obviously the bitcoin market has been quite sluggish. you see much more volatility

when it comes to stable coins. talk to us about the volume. are people taking a pause because of the china crackdown? what is going on here? >> i think you have to look picture. crypto is still up 250% over the last 12 months. to some extent, we should not be surprised it went through a pullback. there have been a number of news items, the china crackdown on mining, his original concern about environmental consequences. news that regulators are focusing on the space that have caused people to take a breath. the secret about those news items is while they are short-term introducing volatility, long-term, they are seeding the next new bull market. environmental focus is good for crypto. china moving mining offshore and decentralizing the network is good crypto. this may be the pause that refreshes. the seeds of the next bull

market are being born. we will see how it pans out. emily: i wonder how many investors are also waiting for tesla to start accepting bitcoin again or to see whether tesla will do that. take a look to what elon had to say. >> we are going to do a little more diligence. renewable energy usage is at or above 50% good -- at or above 50%. toward increasing that number. emily: if that happens, is that going to catalyze another markets like th go -- market cycle? >> a lot of institutional investors took a pause when elon

made that tweet. we certainly heard more concerns about that. knowing that bitcoin has gone through a diligent process and come out the other side would be an important signal for those professional investors to move forward with allocations that were on pause. don't think there is anything about tesla accepting bitcoin that specifically catalyzes a rally. the fact it has been subjected to environmental diligence by one of the leading environmentalists in the business community and come out looking good i think will be good for professional investors and institutions thinking about bitcoin anyway as a technology play, as one of the best asset classes the past few years. i do think it is important in that light. emily: i want to talk about volume should when you look at trading volumes of bitcoin and ethereum, they all must work to buy trading volumes in some of

the other trading assets. tether has a host of legal questions looming over it. what you make of that? >> i think that there is a special case. there are concerns about its tomorrow -- about its commercial taper. a lot of investigations going on in that space. tether is the largest stable claim. it is moving toward a more regulated future like the rest of the crypto market. the sooner we get there, the better. i do think investors will be back to mainstream crypto assets soon. whatever pause we have seen the past few months is natural after the rally we saw in the past 12 months. a lot of concern about tether. emily: what is your outlook on mainstream crypto? let's say ethereum versus bitcoin. by the end of the year, how do they look different? >> investors should probably on both. the thing about crypto is it is

hard to know how it will play out in the future. anyone who tells you they know exactly where it is going is probably a little full of themselves. the safe that is for investors to on both. those are two different things. bitcoin is digital gold. it is great for hedging inflation long-term in a portfolio. it is great as a nonsovereign store of wealth. ethereum is the rails for the new internet of finance. they both use blockchain technology. doing very different things. investors who are excited about the big picture as part of our new financial future probably one exposure to both assets. emily: matt hogan, always good to have you on the show. thanks so much for sharing your outlook with us. coming up, and the ev maker goes public good we will hear from the ceo next -- coming up, an ev

maker goes public. we will hear from the ceo. expecting shortages to bottom out by the end of the year. it will take one to two years for the industry to fully catch up. look you following these developments and i will be speaking to him tomorrow. this is bloomberg. ♪

emily: mercedes benz has presented plans to electrify a plan to spend $47 billion this decade. it helped defend its position as the world's leading luxury car

maker by aiming to launch three all new electric vehicle platforms in 2025 and set up eight battery factories with partners. the carmaker has stepped up its game after years of criticism for being late to adopt purely battery powered cars. la-based ev start up not so much of a start up anymore. began trading on the nasdaq. my colleagues spoke with carson brightfield a bit earlier. >> this is a great day for us. we are excited. i am excited to be here at nasdaq right now in new york city. our first big milestone. we became public today. the next big milestone is within 12 months, we are going to deliver the ff 91 to the market

out of our california plan. >> talk to me about the market you are going after. i mentioned a tesla but you are kind of in terms of price point and the style of driver, i don't think that is the market you are going after. you're going for the much higher end, the bentleys and the porches of the world. >> we are building a top premium luxury brand. we want to find what luxury and premium means. the way this works is you always have to start at the top. we have to come up with the product everyone is talking about. many people are desiring it and almost no one can afford it. this is how you build a bridge. once it is understood by the market and set the move down any other segments, we will have the other segment. the smaller version 18 months

after the ff 91 that will compete with the tesla model s. >> the idea here is you want to have a bigger interior space than in your segment. you want to have a digital experience better than anybody else. you are also going to be trying to reach a thousand horsepower, zero to 60 in 0.6 seconds in this vehicle. are we going to see that in dealerships in 12 months? are you going to be able to make it in volume? what kind of figures are you going to put out? >> we will start with an addition of this product. fully put at the high price point. the limited-edition.

the first edition will be limited to 300 cars. it requires a $5,000 down payment to -- down payment. we will launch the base product, which you can add to your specs. you will see it in 12 months. the brand has three dna elements. one is great futuristic design to the other is the driver seat. 1050 horsepower. it is fun. it drives like a race car. for all the passengers, they have gray seats as well. they have space, comfort. they have the greatest digital experience with 27 inch displays. >> the road to where you are right now has not been a smooth one. there been a lot of bumps along the way including a fallout with the company's cofounder. missed deadlines, delayed plans.

here you are today when public investors can access your story. tell us why they should trust the plans you have going forward are more likely to come true than the one over the past couple of years. >> everything which happened in the past is past. it is water under the bridge. i had this experience from the past. about a team of people who know how to do their job. we did a lot of work on the company structure. we introduced the standard. capital was the last item missing. we are happy now we can go through this merger transaction and become a public company now. we will deliver in 12 months from now. emily: carson breitfeld.

uber is looking to expand its business by acquiring a company owned by cgp capital. the deal is the company's biggest that so far on the trucking business. jackie joins us now. uber has offloaded so many of these other more transgender real -- more tangential businesses. they are still in frayed purity why is uber doing this? >> it is a key move for them in that they are trying to position themselves to capture more market share of the $4 trillion crude industry. this deal, they started the segment in 2016. since then, they sacrificed market share with pricing. or pricing together more market share. this deal is expected to bolster that unit and help it and organically capture more stake.

with regards to some of the other segments, this goes hand-in-hand with the recent poach -- recent push in last mile delivery. emily: what is uber's trajectory in freight? >> they have partnered with a company like trance place. they have over $11 billion in freight under management. uber's ads help connect with truckers. it has not expanded past of this comprehensive logistical space. it's trajectory going forward -- its trajectory going forward is it wants to be an end to end logistics platform. emily: talk to us how this builds on some of the early bets

uber made under the former ceo. one of them buying auto. >> this is certainly going to be -- it is expected to be very profitable acquisition for them in that they are expecting this unit, which has not been profitable for various years to really turn around. as it relates to some of the other units, the delivery space, outside of mobility, which has taken a hit during the pandemic, this is expected to help the business overall. it is not going to be a drag on its bottom line even though freight is a relatively small portion of its overall business generating 300 million in the first quarter to 10% of the company's overall revenue. it is expected to benefit from synergies. it is a really profitable company. it is expected to generate 100

million in the next year. they are looking to benefit not just for the unit at the business overall. -- but the business overall. emily: thanks so much for joining us. we will see how this one plays out. coming up, mark gurman shares details on what new devices we can expect from apple later this year along with everything else you need to know. that is in our power on segment next. this is bloomberg. ♪

>> is mark gurman from bloomberg technology. i will be taking a look at how covid is impacting apple's return to office plans, apple's

work on new tools to replace your bank as well as the company's plans for new iphones, apple watches and more. apple is delaying its plan to bring back all employees to its global offices by one month at minimum, pushing back the return from september to october at the earliest. the company is making the change in response to rising covid case numbers both in the u.s. and globally as well as the delta variant of covid could it pledged in any amount to staff that would give them a one-month heads up on when they will be required to return to offices. apple's return to office set up has not changed. it is still asking staff to come back to the office for three days per week but it is offering up to two days per week of remote work. apple wants to continue to replace your bank and other financial services with new tools developed alongside goldman sachs. the companies are working on a new service called apple pay later. this will let you pay off any

apple pay transaction made on any credit card in the u.s. with installments. the company is working on two variations on this upcoming program could the first one is called apple pay in four. this is a four installment program with installments made every two weeks with 0% interest every week. the other program is called apple pay monthly stallman spirit that is for -- monthly installments. allowing users to pay off transactions over several months. it will include interest via loans with goldman sachs. a lot of the attention is on four new iphones, screen technology, faster protestant -- faster processors at enhanced video recording features. the new phones in addition to the significant upgrade to the apple watch. the biggest revamp to the ipad many marie thank -- revamped at

macbook pros and entry-level air pods. emily: that does it for this edition of bloomberg technology. make sure you tune in to us throughout the day tomorrow. we will have a host of big-name guests starting out with pat gelsinger. we'll be talking about the earning results, his outlook on the chip shortage. we have been listening to his comments on their earnings call. there is speculation about a foundry related deal happening. he says he is not ruling it out here i will be speaking to the twitter cfo on the back of their strong quarterly sales and better forecast and you won't want to miss big tech tomorrow. we'll be joined by the spanish prime minister to talk about his visit to silicon valley. i'm emily chang in san francisco. this is bloomberg. ♪

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haidi: a very good morning. welcome to daybreak australia. sophie: we are coming down to asia's major market open. shery: good evening from bloomberg headquarters in new york. tech drives u.s. stocks to the brink of a record as traders digest a day-lewis of data and earnings reports to -- a delucia of data and ea