>> this is bloomberg technology with emily chang. ♪ emily: i'm emily chang and san francisco. coming up in the next hour, lyft turns its first ever adjusted profit. a milestone for the rideshare

that is -- that has been losing money since. now that mask -- can they both grown out of mask mandates are back? plus, after sweeping crackdown on child's most powerful technology company, tencent feeling the heat. chinese media calling videogames quote spiritual opium. with this could mean for china's biggest corporation. and, gary gensler finally weighs in on the cryptocurrencies. in his first extended interview about blockchain. bitcoin dropped yet again. first, a look at the markets with bloomberg's kriti gupta. i want to start with lyft joining its first ever profit. they said it was coming this year and now they've done it. >> you can see that really just

becoming a game changer and after-hours trading. lyft shares, this a profit for company bleeding cash. a great turnaround story. from management perspective, shares up 4% after hours. we also got results from activision, this was a stock that was very affected by the chinese regulatory scrutiny. now we are seeing a closely affected to the earnings beat. also the outlook for the entire year. the company is dealing with a lawsuit case. from an investment point of view solely, this was good news for the shares. i also want to bring in a non-earning story.

we know that nvidia has been leading chips. in anticipation of getting approval. today, regulators saying they might not get it. amd the one that profited from the new closing. really battling it out when it comes to shareprice. emily: thanks so much for that round up. i want to get to that chinese state media branding videogame spiritual opium. that comment stoking fears that online entertainment is beijing's next target. i want to bring in bloomberg's shery ahn, how is tencent responding to this new commentary from the chinese government? shery: there has been pressure

for a while. whether it is an antitrust crackdown or gaming addiction. they already have measures in place. they are now pledging more further measures to rein in playtime for minors. we are talking about only one hour of gaming allowed for kids during the weekdays. banning those inapt purposes by kids. even footing the idea of banning gaming for children under 12 years old. these are measures in the crossfire of another measure of beijing. as you said, those very strong words, opium, saying that the industry should proffer by bracketing an entire generation.

not surprising, this gtv chart showing their furthest from the target price on record. other chinese gaming stocks are at u.s.. emily: meantime, the crackdown taking a toll on alibaba. the company recording results not too pretty. what do you see in there? shery: we were watching closely because it was one of the companies actually hit by chinese authorities cracking down on the tech sector. first quarter revenue actually missing wall street's estimates for the first time in two years. revenue climbing, still coming in short. net income did rebound for the previous quarter. remember, the previous quarter they had a loss because they were hit with that record $2.8 billion antitrust find area alibaba has been underperforming . here is this chart on the bloomberg, showing their underperformance since that ipo was scrapped.

and, profit falling to $2.1 billion. alibaba's major divisions from cloud to e-commerce all showing the growth still interestingly or perhaps because of the regulatory crackdown, the ceo endorsing government policy. especially when it comes to the government calling out the blocking of rival services because of course alibaba and tencent exclude these services from their platform but now calling it a positive trend. emily: meantime, it feels no sector is safe. car chipmakers are also under investigation. shery: we have heard from authorities they are looking at price collusion. we saw chipmakers in china fall by the daily limit in shanghai. our bloomberg columnist saying that perhaps stay away from the hot money. where it is going. this was a sector surging giving the global chip shortage ongoing for the past year. it has been a similar story for

tencent. despite all of these crackdowns, continuing investments to flow to education. and now they are. really taken the heat from beijing. emily: shery ahn, the coanchor bloomberg daybreak australia and daybreak: asia a we will continue to cover this throughout the day. i want to stick with chips, nvidia, the biggest u.s. chip company has announced a $40 billion deal. they announced it back in september. u.k. is considering blocking the deal to the potential risks of national security. no final decisions made. bloomberg text and king joins us with more. what do you make of the mention of national security risks? >> what we have to point out is this is bloomberg's reporting. the ua -- the u.k. government has not said anything.

to take you back to conversations you and i had, you remember we said the sticking point for a lot of people, how would something like this make its way, particularly with the value. companies and supplies. how could then end up with just one company? that was considered a big sticking point. what we have reported today is an example of how difficult the process is. emily: an incredible scoop by you, what does this mean for nvidia? >> back to the central point, quite a lot of analysts say this is a huge bonus. certainly something, the next

big expansion for a company that is done well. there's a lot of cynicism. probably doesn't destroy. for a lot of investors at this point. it is definitely a hangover, something they would like to see. emily: is it a boost for nvidia's competition? what does this mean for the broader landscape? >> that is a good question. we have already seen very large companies, come out and say we don't want this to happen. you really don't want to see nvidia get any stronger. if you are a competitor. very important market for a&e. anything which holds up the

charge has got to be good for them. emily: ian king, we will continue to watch your reporting on this and see if we get any official word from the government. thank you so much for that story. meantime, another one we are continuing to watch, microsoft joining a list of big tech corporations that will mandate vaccine. before employees can enter any office in the united states. the new rule say the software giant will fully reopen until october. facebook also recently announced employees must be fully vaccinated to return to the u.s. offices as well. coming up, gary gensler gearing up for more oversight of the crypto currency industry. this is bloomberg. ♪

emily: regulation is coming to the wild west that is crypto. if the words from sec chair gary gensler are any indication area chairman gensler has taken to protecting investors as a top priority. nicholas and. >> right now, in this digital, bitcoin and other we don't have enough protection. frankly at this time, it's more like the wild west area protection against fraud. this is rife with fraud, scams and abuses area emily: that was

sec chair gensler speaking. in his most extensive interview yet on crypto. joining us for more on what is ahead, our bloomberg news financial reporter. then, we don't have to read between the lines so much anymore. gary gensler getting more explicit. what do you think this signals in terms of real regulation coming for the industry? >> we had a long conversation about his thoughts. he spent three years or so teaching classes at m.i.t. about cryptocurrency, blockchain technology. he has thought a lot about this space. this technology. we heard from him specifically was while he has an affinity towards the technology anything for a lot of intent -- a lot of

potential there, he is focused on investor protection when it comes to cryptocurrency. and, he thinks there are a lot of gaps. one thing he pointed to specifically was the crypto exchanges. also, a decentralized platform for cryptocurrencies trade. he says maybe even congress needs to step in here. giving potential some -- getting potentially more authority. right now, at least seven different initiatives. how crypto assets are dealt with in terms of custody. a bitcoin etf at some point. everything in between. we should expect a comprehensive regulatory framework here. emily: gensler says i have asked the staff to use all the authorities to uncover any

wrongdoing. currently considering. not only are they highly speculative asset class but the investor protection afforded to you, they are not all enthusiasts, regular investors were dipping until into the crypto market. how are they responding? >> for some, the crypto enthusiasts, coming in, gary gensler was going to be the s&p chair. they spent a lot of time thinking about it. there was an expectation given quickly to open things up. bringing crypto into the mainstream. what we are hearing now is that is going to come with some strengths. if crypto is going to go mainstream, bit through some of

these other mechanisms, he wants to see more control. more investor protection. if you are one of the people who thinks this can exist outside of government, the initial libertarian street -- street, this is a really interesting technology. the could really be brought into the mainstream. a lot of people want that clarity. obviously that will depend on how it's implemented. but, it really depends on what you want to see crypto b. do you want to be something outside of government control? or for it to go mainstream? that is obviously i think we're chair gensler wants to go. emily: going more mainstream as

we speak. thanks so much for weighing in on that. appreciate your insight. coming up, squares massive acquisition shaking up the by now pay later industry. this is bloomberg. ♪

emily: the buy now pay later business has a big new k on the block. squares $29 billion bet on after pay shaking up the ever evolving credit landscape. just one example of how quickly the banking industry is changing. competing with after pay. this is a big move.

as a competitor, what you think of it? >> definitely a big move. the direction, where we have been leaning, we are seeing a massive transformation. there's going to be an area of big players. the tech company, big tech, the transformation. what surprises me, currently in the u.s. this massive momentum for by now pay later. growing at a 400% rate. we are surprised to see what might be a distraction over the next year. when all of us are trying to shape up this market. emily: have you gotten more

interest in the last 24 to 48 hours as a result of this? we had analysts on the show yesterday said it would be a target. >> thinking more like what are our targets? emily: you have, i believe three companies just in the last month. >> if you look at, and the u.s. they might be familiar with that but we have our own issue over half a million. the deposit account. we have basically all you would expect from a near bank.

it's a fantastic feature, also spells much better for consumers. these consumers, the only charge merchant doesn't have all the aspects of the traditional credit card industry, which is really bad. and how they try to put you into debt. it is a less predatory model that is much more consumer. emily: this is a space apple is getting into. you have square buying after pay. how does this change the competitive landscape to you? >> i think, my expectancy is that we are going to have two companies that will work together.

when it comes to the big players , i think to some degree we are seeing a traditional tech giant value overstretching area they think they can do everything. it very hard to be good at everything. we are neighbors here. it wasn't supposed to exist. driving to do very well. we replicate that in the banking services of the u.s.. emily: i guess a question is being asked for company like cornell makes more sense as part of a bigger financial institution? or, are you aspiring to be that bigger financial institution yourself? >> the latter. i have been at it for 16 years.

we have had a fantastic journey so far. we look at the future, this is not the end. you can see it all happening. similar to years ago, i think why would they. this is just the beginning. emily: i remember you using that amazon metaphor before. we will keep washing area always good to have you here. thanks for stopping by. some other stories we are watching, a coalition of gig economy companies like uber and lyft opening up a new front. the companies want to place a measure of independent

contractors, not employees. they contend uber and lyft drivers should be considered an employee. setting up a showdown like in prop 22 in california. speaking with big tech, employees may get the chance to reverse through amazon. federal officials have recommended overturning the results of a union election at an amazon warehouse in alabama. the national labors -- national labor board officer says it should be run again. they accuse the company of making antiunion threats. coming up, speaking with the cfo and coo, this is bloomberg. ♪

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emily: welcome back to "bloomberg technology." i want to bring you to our bloomberg markets reporter for the latest. got to talk about robinhood. way up after that muted debut and unclear why. kriti: it was not too long ago we had written this off as i flock ipo, but it saw a surge today, and here's why -- all the retail traders put power behind

the stock. a 24% surge, actually going past its ipo price of $38, but it is not the only story i want to show you today. a slew of earnings when it came to the market. this was the very first place you really saw the market impact. alibaba reporting earnings, missing for the first time in two years, after that china crackdown. which brings me to the latest development in that story, and that is videogame stocks. i want to mention tencent was down today, seeping into other videogame stocks. great news after hours for lyft, coming out in reporting its first quarterly adjusted profit after bleeding cash, and this was a quarter sooner than

expected. i want to end with kind of a downer story for match group, at least for now, shares down 4%. it is all about the delta variant and what impact it could have on progress moving forward. emily: thanks for wrapping that up for us. appreciate it. dating apps hitting record numbers in july with restrictions lifting. for more, i want to bring in match group's ceo -- cfo and coo gary swidler. what are the latest dating behaviors you see driving this? >> people are out there dating again and our results show that. we saw a really strong recovery and reopening. we are seeing that in the u.k.

and other parts of europe now. asia is a little bit behind, but we saw that start to go up, so we see at lot of room to run. emily: there are new mask mandates in place in california and across the country. >> our engagement remains really strong, higher than it was pre-pandemic. it is harder for people to meet in real life because workplaces and schools have not really reopened, so people are using online tools to meet people and to date, and now people have the option to meet in real life as well. the reopening is definitely helping us, and i think we will continue to see people want to go out and meet people, just given that they have been locked down for a long time.

as long as we don't see the real restrictions on movement that we saw at the beginning of the pandemic, i think we will see tailwinds on our business. people have been very resilient. the last thing they want to do is stop meeting people and be by themselves. they are going to keep turning to our product, if it is virtual or in real life. emily: i know vaccination status has been really important, to enable folks to say if they are vaccinated or not. do you find that people are being transparent? how is that playing out? >> i think it has become a critical factor in people wanting to meet. they want to know if people are vaccinated, and people are putting that out there, a vaccine badge, we call it, to let people know. it has become kind of a badge of honor. we are seeing a high percentage

of people with that on their profile, and people are looking for that. it is just a helpful fact, like many other helpful pieces of information. the fact that you are vaccinated is attracting others to you. emily: the olympics are happening, and one scam has gotten a lot of attention. tender -- tinder users actually changing their location to try to meet with olympians. >> the olympics are always a great time for us, people from all over gathering in one place. although it has been tougher this year, our products are still being used for the olympics and people want to match with olympians. this is something we see every few years, and we are excited our product is one people turned to while the olympic's are going on.

emily: are you doing anything to prevent people from disguising their location? >> we have tools to combat bad behavior. that is one of a list of things we will watch for as we go forward. emily: you also recently acquired hyper connect, and i know this on first -- this opens a ton of new capabilities. talk to us about what this could mean. >> we are really excited about the acquisition. there's a bunch of different components to it. the first is we see at lot of growth opportunities for us in asia. this gives us another 400-plus people on the ground in asia, so a big team, really strong with over 200 engineers and highly talented advanced engineers, so that is a real shot in the arm for the company and could be beneficial for us down the road. they got a lot of expertise in video.

as we talked about before, that is an important part of dating and meeting people online. you want to video chat at them first. they have really good audio technology. we are going to spend a bunch of time with them getting some of their capabilities into over other brands, which we think will pay big dividends for the company. we also think we can help them. they have two really good apps in azar and hakuna, and we can help them grow in europe and japan where we are really strong , so there's a lot we can do to help them grow and for them to help our apps grow. emily: a cafe is opening in new york to help people meet in person. what do you think about that? is that something you think will work? is that something match might

do? >> that is not in our strategy. people have lots of different places to meet in person. we are going to stick to using technology to help people make connections online and figure out where to go from there. i don't see us entering into the cafe business. emily: we will continue to watch the business continued to evolve as the pandemic evolves. appreciate you coming by. coming up, blue apron shares down after a second-quarter report of customers returning to restaurants, but with the delta variant spreading, could that give meal kit makers a boost? our conversation with the blue apron ceo next. this is bloomberg. ♪

emily: meal kit subscription service blue apron is losing consumers as consumers return to restaurant. the company reported a second quarter loss of 2.80 $6 million. we have linda kozlowski, blue apron's president and ceo, with us now. give us a sense of what you are starting to see with engagement. >> what we are starting to see is a normal return to seasonality. we usually have a change between q1 and q2 going back to pre-pandemic times.

q1 is the largest quarter for meal kit companies. a lot of what we are seeing now is seasonality. on the flipside of that, what we are also seeing is a lot of work we have done around product initiatives have driven revenue per customer. sort of driving additional dollars from each company in the mix. it is continuing to grow and actually holding quite steady during the pandemic sort of reopening, though all that is continuing to change. emily: we were just talking to the ceo of match earlier where mask mandates were bad for their business, but i was wondering, with the delta variant increasing, could that boost your business as people struggle to get out? >> it will be interesting.

we were already seeing strong retention, cooking at home habits as we expected to. we expected to see a dip as things started to open up again, but we also expected to see higher levels pre-pandemic because of people forming these habits, and that has continued to hold true, and we are seeing people engage on a more frequent basis. so far, what we have seen is it has stayed really steady as delta has become more of a conversation, but i think the next couple of weeks are going to be interesting because some of these mask mandates are new to people, and the reaction is different now than it was at the start of the pandemic. i think the next couple of weeks are going to tell us a lot

across a variety of industries. emily: i believe you peaked with one million customers in 2017. 300 75,000 last quarter. what do you see as a realistic number where customers will stabilize? you obviously have a ton of loyal customers. how many customers are going to keep coming back quarter after quarter? >> i think it is a different way to look at it. when you go back to some of those customer numbers, that was early days, and a lot of what has happened in between then is there has been a reset of the business. just a prime example, when you go back to 2018, we spent $127 million marketing the company, so a pretty big change and drop, which was why we had such precipitous declines in customers and revenue at that time, which was anticipated and planned as the company reset.

i still maintain that the meal kit stage is very new. you are seeing increased adoption overall. now that we are leaning back into marketing and starting to rebuild in a much more sustainable way towards growth and adjusted ebitda next year, the market opportunity is quite large when you think about the broader food industry and trends toward buying food online. emily: interesting. i know you also have this aprons for all initiative focused on sustainable initiatives. you just formed a partnership with disney. we will see how that all plays out. thanks so much for stopping by. coming up, the world of venture capital on fire with firms pouring billions into startups. marc andreessen talks about the

explosion of vc and funding in silicon valley next. this is bloomberg. ♪

emily: the golden age for startups, venture capitalists seeing a boom with almost $300 million in funding in just the last few months. marc andreessen, partner with andreessen horowitz, joined us to discuss it. >> two possibilities, one possibility is we have gotten ahead of ourselves again as we did in the late 1990's, and things are just too hot. the other possibility is the world is going through a technical transformation, and it already was before covid, and it

feels like the world is going to change in some fundamental ways. you have these tech companies driving these changes and realizing the benefits. >> do you worry the economy might soften at some point or just because of the business cycle the venture cycle will slow down a bit? >> it has a history of booms and busts. that said, we do not have a great record in our industry of predicting these cycles. i think most of how we either perform or fail to perform is micro, not macro, which is to say best -- based on the success or failure rate of the company. many companies have been formed during hot periods but also many during cold periods, so it is possible there's another cyclical room and bust -- boom

and bust cycle. our plan would be to just keep going and keep investing in new companies all the way through and bet on these microlevel companies all the way through. david: businesses in the olden days would say they make money on 10% of their deals and lose money on 90%. now it seems you make money on everything. >> i can confirm that is not the case. we are going to have rockets blow. the statistical layout if you look at the history of it, it is actually about 50/50. it is basically 50 percent of the companies make money on 50% of the companies lose money, and

that is the general statistic. david: it used to be the case a venture capitalist did a very successful deal, the venture capitalist might make 4, 10, 15 times their money. now it seems you make 500 times your money in some cases. was that obvious to you when you made the initial investment? >> no, it was not, no. we are wrong a lot of the time. there's a lot of twists and turns along the way. a huge part of it is the confidence capability. david: a firm like softbank has come in with enormous amounts of money and paid higher prices than i think even you would pay

for other venture capitalists. does that help the business, hurt the business, or is it too soon to say? >> i have respect for anyone when they take responsibility for the results. i don't like to prejudge. i think softbank has made good judgments. sometimes that amount of money is good for the company but sometimes too much money is very damaging for the company. erik: -- emily: entries in horowitz co-founder with david rubenstein -- andreessen horowitz co-founder marc andreessen with david rubenstein. you can catch the full interview this evening. chipmaker reporting a narrower loss than wall street expected but days after its fallen founder was charged with

misleading investors, ed ludlow joins us with how the current ceo is managing. ed: the long and short of it is they will now only make 25 to 50 trucks this year. they were going to make 50 to 100. what so amazed and shocked me when i spoke to the ceo was that they will not even be able to sell all of them because they will be missing parts like semiconductors, and until they can retrofit them, they are not able to put them down as revenue, so they will just give them away for free for testing purposes. emily: is he throwing him under the bus or defending him?

ed: the company has been very careful in what they've said. they said this is only about trevor melton. the charges only relate to him and the actions he took and the things he said. he did say it is hard to draw a line in the sand because by association, people will remember the company for this criminal and securities fraud investigation. emily: right. do they need a rebrand? ed: it is very hard to do a rebrand. what russell told me was there's no judge that makes this all go away for everyone else who was there at the time. he does not just hit the gavel, as mark russell put it, and suddenly everyone else is cleared. emily: meanwhile, it is not all easy in the truck space.

ed: tesla has pushed back semi's to 2022. we are talking about really small volumes, though. all of this is still possible, the ceo told me, despite supply chain -- emily: how does that compare? ed: it seems as if according to -- according to sources, tesla feels like they should prioritize other things ahead of semi trucks. they are thinking let's push semi trucks back and get our house in order. emily: who are the main customers here? this is not your typical model

three, model s? >> this is what i loved about covering the story. you had this eccentric founder. he made some things sexy, which was boring semi trucks that carry heavy objects from letter a to b. these are breweries who operate big kegs -- operate big trucks carrying big kegs back and forth. there's a really good use case environmentally and cost-efficiency wise to doing electric. emily: that's quite an additive given the tesla model s, x, y. that does it for "bloomberg

technology." it continues with -- we continue tomorrow with more coverage of uber and lyft. you won't want to miss it. ♪

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haidi: a very good morning. welcome to daybreak as trail you. sophie: i'm in -- welcome to "daybreak australia." shery: u.s. stocks rise to a record in treasury yields