>> from the heart of where innovation, money, and power collide. from silicon valley and beyond, this is bloomberg technology with emily chang. ♪ emily: i am emily chang in san francisco and this is bloomberg technology. coming up, pellets has investors sweating. pellets on -- peloton has

investors sweating. our conversation with the ceo this hour. amazon backs a company. could the electric pickup truck maker pull off one of the biggest debuts of the year? as the taper debate gets underway. >> but the criteria we put in the statement about what it would take for us to begin tapering, i think we are pretty much there. >> i think we still have an amount of energy momentum and can do our tapering faster. >> let's phase out purchases and

give ourselves some breathing room. >> keep it simple, stupid. let's get it over with. >> it may give us more flexibility down the road. >> the timing and pace of the reduction in asset purchases would not be intended to carry a direct signal in the timing of interest rate with tough for which we have articulated a different test. emily: kriti gupta joins us to talk about the market reaction. >> no surprises, that is good news. they wanted to know that the tapering deadline is not moving over. that was good news. chairman powell confirming what we knew, at the end of the year is when they are starting to look at on pulling back those bond purchases and it has no impact on the rate timing. you see right here the s&p 500 in the green, tech in the green

and even semi conductors up. yield is down, but not the likes of what you would see in a taper tantrum. the question here is where stocks go next. when you continue to have fed support and no surprises, strategists are mixed. this is the high forecast over 4800. the spread has never been this high and you can see where we are right now, closing above 4500 for the 52nd record high this year. crucial that if you don't know where the markets are headed next year, you are not alone. it brings me to a micro story we all have our eyes on, peloton dealing with a laundry list of concerns. the share price is coming all the way back to june levels,

taking out three months of gains. >> emily: thank you for that roundup. peloton forecasts missing estimates by a longshot. analysts were not inspecting the fitness company to slash the price of its most popular bike and peloton confirmed they are being subpoenaed by the government for more information about injuries regarding the treadmill and the sec is now investigating public's closures. even so, the ceo remains optimistic about the company's position and future. i spoke to him earlier. >> i think our business is in fantastic shape. we had a fantastically good 2021. we grew 114% for a subscription business which is our business and got into more than 56% prescription growth so we are feeling like the growth is there and we are making smart

investments. we feel great. we have had an incredible year with covid. we are feeling great. emily: you are cutting the price of the bike by putting percent, about $400. why do that now? >> we are so proud to be able to offer the bike at a lower price point. going back, the founders and i, it was like nails on a chalkboard people talked about peloton as a product and experience for rich people. and it is not, it is everybody. we talk about democratizing access great fitness. so to answer you directly, we are able to do it now because our supply chain capacity finally caught up with demand so we are able to make over one million bikes this year and so with that type of capacity, we can lower the price to $39 per

month which feels accessible. you and your partner might split the membership were both red bike, is under $20 a month for the hardware under $40 a month when you factor in the subtraction so we feel great about the accessibility and are proud to offer the right thing for our business,, and members. emily: you have disclosed you have been subpoenaed for information about the treadmill recalled by the doj, dhs, s.e.c. , and there is concern you did not recall this soon enough. what can you tell us about this? >> we will always cooperate with authorities. we are making the right decisions and don't have anything to hide. the consumer product safety commission also investigated us but we were working with them to get on the right line of safety,

are lower price trend is going to be for sale next week. we are now on the right side of the line with respect to safety and they feel good about our new product which we do to. we think it will be a game changer. our partner said he thinks this could be bigger than our light business so we are super excited and will cooperate with any investigation. emily: you did express optimism on the call. what makes you so confident given it has been a difficult start and what are some lessons you have taken away from this process? >> pressure. -- for sure. i believe in this boot camp style workout. treadmills of yesteryear are machines where you got on and droned for 30 minutes and did not love it.

this brings a boot camp workout. you have a heart rate, you are still connected to the leaderboard, but you are doing weight training and full-bodied boot camp accounts. so the category itself is much bigger than stationary bikes and the content that you consume in these classes is even better from a full-bodied perspective than just the core indoor cycling. the score is already 85 for that product so we have high hopes for the tread category. emily: what else is on the roadmap that investors can get excited about? we have reported about a rower, a strength machine, a heart rate wearable. >> we just reported yesterday that 10% of our avenue has gone into r&d.

so we have so many fantastic platforms across all kinds of different opportunities and platforms that we are excited to bring to market. we have said this is a big year for launching new platforms. i can assure you we have lots of cool stuff. we are not stopping at a bike or tread category. emily: you said you would return to profitability 2023. what makes you so confident? >> the beautiful thing about our business is that it is predictable. when you think about the subscription business we will end the year 3.6 million subscribers paying us $39 a month. we also have a fantastic performance based marketing organization where we know what we are doing with respect to marketing and having that translated to sales. we have a very particular

revenue and when you layered the predictability of the current cash flow and our current hardware sales against a predictable expense race, we can say in 2023 will be profitable based on understanding our business. when our cfo says we will be profitable next year, is an easy bet that is the case. we have set this year is an investment year and we feel good about the investments we are making. we feel it is the right thing for long-term. emily: there is more competition out there. you have got apple with fitness plus service. how do you see peloton as gyms are reopening and the pandemic is hopefully ending soon? >> hopefully. i am a social is anyone and we just invested in this fantastic

so i am giddy with excitement to get back and see all of my great colleagues. but i'm glad you brought up the gym because from our perspective, that is our competition. 100 maybe -- there are 180 million people globally with jim mentorships. we believe those people are paying hard money month after month and just want to be fit. if they could be more fit at a better location and better value, we will ship them over to home fitness and that is who we see as our true competitors and our value proposition. emily: what about international? what do you see when it comes to international expansion opportunities? >> we love international. i head of international is doing a fantastic job. as you know, we just launched in australia the summer. we have more markets in the work in the coming years. we believe we know from our members how much they love our

products and services so we are just trying to get to new markets and service new committees. we feel it is good for health and wellness around the world so we could not be more excited for our opportunities. emily: my exclusive interview with peloton's ceo john foley. for more, i want to bring in mark gurman who covers pella tone -- who covers peloton for us. i have to start with his level of optimism about this new category despite some of these horrifying safety complaints a child actually died in an accident involving peloton but now the company saying this will be bigger than their bike. >> i think he is right. the treadmill is the more popular piece of jim of quitman. summary wanted to pick just one fitness device to have in their home, i venture to say they would pick the treadmill over

everything else because of the versatility. i do think they have a serious issue with this. it is north of $4000 and ways to hundred pounds or more anger average treadmill and has this issue where it can lead to your child dying. it has killed pets and many people so i think the easiest thing be to completely cancel the tread class and focus on the cheaper $2500 tread. if that is their only skew, it will improve profitability and they are offering a project with fewer issues. the issues are easier than the child dying treadmill so they should go all in on that and that could be quite a successful product. if they split and make a lower price tread and something as a lower entry tread down the road. emily: as we watch to see if

that tread plus hits the market, we will also talk about them cutting the cost of the bike. you heard john foley saying this is like his dream, being able to offer the bike more economically. it is still not cheap but a step in the right direction. do you see that making a material difference? >> honestly, i don't think it is low enough. they lowered the price in to 1895 to really move the needle, they will have to get to that $999 price point. even if that means raising the point of the bike plus. and the bike at the higher end. i think if you get the peloton down to the $1000, they will have a true hit on their hands and they will have an immediate skyrocketing.

the other question is do they have enough supply to lower the price further? they might have done an internal operational matrix to figure out that the demand rate is as much as we can handle because if they make it any cheaper, they will go back to those terrible supply-chain qualities they had over the pandemic. emily: we are going to watch the story over the long-term to see how these categories play out, see if they cannot with these new products you have reported on. mark gurman, thank you for that update. coming up, all roads lead to the public market. this truck maker backed by amazon fios for its first idea. we will have details on the bloomberg scoop. this is bloomberg. ♪

♪ emily: let's take a look at some ip owners. the maker of point-of-sale for restaurants toast has found the public. they plan to raise $118 million, though the amount is likely to change. they could see an evaluation of $20 billion. and this amazon backed electric pickup maker has also feild go public. the listing could value the company around $80 billion. ed ludlow has more from short. -- detroit. >> if they do go public, it would be not only one of the biggest listings of the year, but one of the biggest in the automotive industry.

the company hopes they can list around thanksgiving, though it it is completely at the mercy of the sec in terms of how quickly that will proceed. this is a company that has a lot of interest. it was backed by an investor and has a stellar list of institutional investors backing it. and yet, it has not delivered a single car to customers. it hopes to start production on a battery pickup this month and a battery electric suv later in the fall but it has been played by supply disruptions coming from covid-19 and has had to push back production multiple times. it already has such a big eye on the future. we reported sources are telling us they have already scouted for a european factory and a second u.s. plant.

they are getting $5 million in texas to build a second tv factory and expand capacity so there is still a long way to go for this company. it is really seen as one of the potential competitors to tesla, partly because so many former tesla employees or alumni work there. not just in up her management but write down two important engineering and production rules so the market is playing close attention to this one and the only question we do not is how much money they plan to raise when they list. emily: in the meantime, it is becoming increasingly likely that audi will start building vehicles in the u.s. as volkswagen electrifies its lineup. we spoke exclusively with new ceo. >> we have to work on range and

our charging infrastructure and those together is always an ideal mix. we do invest in several ways in charging infrastructure together with partners in the public infrastructure and we are now running into a project where we will offer premium charging for a structure that will be high-powered charging in cities. the product is starting at the moment and we had many cities where we will offer that so charging intercession will be key for the success of battery-powered electric vehicles. emily: your parent company volkswagen does make cars in the u.s.. i have been to the chattanooga plant and it is impressive. the cfo has set in the past that audi may produce cars in the u.s.. is this still a possibility?

>> the american market is very important to us. that's why we always discuss where to produce the cars that we sell. discussions on possible production in the u.s.. it's ongoing but we don't know what the result will be. we do have factory will reproduce platforms we also use. there is a attentional to put an audio car -- to the potential to put a car line in the u.s. is higher than ever. emily: audi's ceo with matt

miller. as we continue to await a verdict in the apple versus epic work case, they settled a lawsuit with other developers. in take a look at shares of this payment platform soaring and extended trade after amazon customers will soon be able to use the payment solutions at checkout. there are plans to roll out more widely in the coming months. this is bloomberg. ♪

emily: that's take a look at a few other stories we are watching. apple has settled a wide-ranging class-action lawsuit but without agreeing to major changes to its policy. the iphone maker will make it

easier for the developer to promote tentative ways to pay without apple taking a cut. in the meantime, china is a poorly taking steps to curb the ambitions of tech firms that want to enlist brought. the dow jones plans to ban companies with large amounts of consumer data to go public in the u.s., giving beijing more control of the complex structure companies used to sidetrip restrictions on foreign investment. plus, plans to launch a carbon negative bitcoin etf. it will use trees to offset the impact of crypto mining, planting trees for the thousands invested into its etf. and entities are picking up spring after springtime low. after the break, i'll be joined by the cfo on how the world's largest nfc marketplace plans to

see $1 billion in transaction volume this month. this is bloomberg. ♪

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emily: welcome back to bloomberg technology. let's get back to the markets with kriti gupta. >> it was a broadly risk on day-to-day, a lot of that coming on chairman powell speech. here is what did not do so well. this was those chinese adrs down 1% on the day. even as it saw the stocks with a semi conductor index, those

actually do fairly well. i really want to dive into what the semi conductors were doing in particular because this little chart, you can see it has dove on this idea that as we see the ship shortage become a worldwide phenomenon, less and less cars are being made and sold and that brings me to the next chart. that will be the next risk indicators. cryptocurrencies are broadly up. the question is can bitcoin continue to maintain its position as at risk sentiment indicator? we will have to watch on that next week. emily: i want to stick with crypto and talk about the rising popularity of going. bloomberg explains why investors

have a long way to go to get exposure. >> bitcoin could soon straight -- soon trade on a stock exchange near you. everyone wants a piece of bitcoin these days, but in some parts of the world, investors have to go a long way to get exposure. as an asset that grew up in a parallel financial universe supported by computer greeks, libertarians and drug dealers, crypto was traded on separate venues regular rules did not apply. opening a trading account sometimes meant sending money to a foreign bank and that led to several instances of fraud, theft, and mismanagement. if they were to take control of bitcoin, they would risk losing it as a result of hardware failure.

exposure was a complex issue. the good news is some of that is changing. venues like paypal now that investors exposure to a range of five forms. in canada, there is an etf similar to that investors use to get vestment in stocks. just like it was backed by the stock index, this one owns and stores bitcoin. for years, there has been a push to launch a similar product. the winklevoss twins have been trying since 2030. so far, they have been unsuccessful. concerns that have kept them from doing so are wild price strings, the use in funding crime and terrorism, and that a few large holders would dominate

market but some watchers say the odds of getting this year have improved, particularly because gary gensler is seen as less skeptical. he wants, class at m.i.t. called blockchain and money and that could be a game changer. it would open the small crypto world to the 6 trillion etf universe. in other words, watch this space. this is it decrypted. for more like this, follow us on your favorite platforms. emily: thank you. bitcoin bounced around $50,000. all anyone in the digital asset world talk about our nft's. non-fungible tokens allow owners of art collectibles contract ownership and are fading from resurgence.

open see as the world's biggest nft marketplace and expect a billion dollars in transaction volume this month, up from $8 million in january. the cfo joins us now. talk about what is driving this growth. petty get from 8 million to a billion in six months? >> thank you for having me on the shell. we are actually at $2.3 million in trading volume in august. it is a really exciting time for nft's. from our perspective and fts have been around since 2017 and this recent surge in excitement is really the accumulation of a lot of hard work from a lot of companies in the space. there is art, collectible, virtual world, so much activity

and momentum around. there is something around athletes that allows them to sell these digital assets directly to their fans and to people who want to engage in these projects so it is a really exciting time and we are at the center of all of that. emily: so we are at the point where you can own a piece of the song, own a piece of a movie, owning a popular sports play. do you see that going mainstream ? >> i do. there are opportunities for everyone here. gamers have been trading digital assets for a long time. they know how valuable digital content is within the value of gains. artists have been looking for ways to engage with their fans.

musician, athletes, there is opportunities for everyone. so there are use cases for nft outside of art, for example event tickets. we have product were people traded tickets as nft's so is a very broad ranging technology. sky is the limit. emily: how do we know these are actually owing to be worth something someday? >> at the end of the day, it is all supply and demand. if you are buying and nft, you should think of it as something that is collectible. you can look at market dynamics over time and do your own research. there is no guarantee that every nft is going to be worth something, no guarantee that beanie baby is going to be a rare collectible someone wants

to buy in the future. that being said, there is an interesting opportunity to own digital content here. emily: so you had a $1.5 billion valuation. talk to us about your plans. are you expecting to go public? >> with our series b, we raise $100 million. our early backers, a number of notable strategic investors were around as well. so this round is about getting the best possible team to execute on the vision we had in 2017. it is a one-stop shop where you can buy, sell, and discover nft's.

working to go and achieve that. so we are really excited about the future of the space and excited about bring on these great strategic partners. emily: meanwhile, the nba and draftkings are launching their own marketplaces. talk about the competition and where open seas fits in. >> we are the broadest marketplace. we think there will be tons of content coming on to the blockchain, tons of opportunity and artists. we always envisioned open see as the amazon or ebay style marketplace where you can go and find whatever you are looking for and you can resell. so we have peer-to-peer trading of a lot of the projects where you can go and list those assets. we have early broad coverage and we are not just about collectibles and art. we traded game items, event tickets and crypto domain names. it is a one-stop shop and we aim

to make it the best in terms of marketplace and for new people who are still learning about the marketplace for those who want to get a taste before sinking their teeth in. emily: talk to us about transaction costs. have the update change things -- changed things? >> we are seeing an explosion of innovation and the underlying letters. upgrades to a theory him have been great, providing a lot more stability but there is a lot of room to grow. for example we launched our blockchain support and support a theory him and also later to blockchain's like polygon that allow for much lower cost environment and it is supercritical is if you are buying high transactions, it

limits the purchase. it is hard to buy something for only $10 if you are paying a $30 fee on top of that. so adding these scalable solutions and looking to new technologies is really vital forgetting the technology to be adopted by a more mainstream customer and that open seas, we are really excited about the polygon lunch we did recent which is a really solid step in that direction. emily: what are your favorites? >> i am excited about gaining and metta versus. this is a virtual world where you can own virtual land and build museums of your nft inside of the museum. it is a lot like minecraft. i think it is really going to be this weird intersection between gaming, art, and collectibles where we are spending more time in this digital ecosystem and building unique experiences.

what i'm excited about are these projects that take it to the next level and build really engaging environments to display your nft. the sandboxes are all great examples but i have got to give a shout out to some of those collectible projects. i am a fan of all of the spear mentation happening in the space -- experimentation happening in the space. emily: quite an exposure. -- explosion. openseas ceo, thank you. the house committee is investigating the deadly insurrection at the u.s. capitol and demanding information from social media companies. facebook, twitter, and google are among 15 companies being asked to turn over records and videos. the companies have a two-week deadline to produce these

records. coming up, a strong second quarter earnings report and recorder outlook for dell but that was not enough to stop shares from falling. analysts cited storage revenue as a weak spot. we will talk to matt baker, coming up next. this is bloomberg.

emily: earnings from dell and hp show the personal computer market is being hurt i the chip shortage. executives said they could not

meet all of the orders they had received. dell was more bullish about the outlook, saying the company was struggling. joining me now is matt baker. talk to me about the chip shortage and how it is impacting what you are able to produce. >> it has been the talk of the town. i would say that we are weathering that storm well. i like to describe our supply chain team has the elite athletes of the supply chain game and they are executing wonderfully. a notable analyst said yesterday in covering our results that the supply chain team deserved a metal. so we like where we are going and the outlook suggest we are bullish going forward. emily: where do you see the pc market going forward?

obviously, we have seen a spike from covid. kids are going back to the office, kids are back in school. is the growth we see sustainable? are we going to see a slowdown? >> i think we will see a change in terms of attitude of pcs and household needs, how it has seeped its way into all of the business processes that we have so i don't think there is any going back. it used to be that one laptop or pc per household was sufficient, now it is multiple devices per person so i don't think we are going back we believe there is great opportunity in the pc market for some time to come. emily: but will it keep growing as fast as it has in the past 18 months? >> i think we will see growth continue. we are in a disruptive time during the pandemic but we do

feel like there is an opportunity for growth going forward and that that is durable. there are still folks in need for the pc, there are still a number of pcs in the world. we still feel bullish on the fact that the pc is central to productivity no matter what industry you are in, no matter what you are doing from a school standpoint. it is the productive powerhouse of the technology era and we are still bullish. emily: shares data and the day down today. what do you have to say about that? >> stocks fluctuate. what i did say is we are pretty pleased with our performance and we played very broadly in the storage market. we gain share over the past many years, number one by a mile.

we are bigger than number one 234 and five combined. so the high-end portion of the market -- numbers 1-5 combined. so the high-end portion of the market we grew that 17%. aci, which is one of the fastest-growing segments of the storage market, we grew that at 84% so we are really pleased with the performance of the pocket. so we will see in terms of market results, some changes. emily: matt baker, thank you for stopping by. coming up a former facebook executive took over ancestry.com this year. she joins us to talk about her plans for the family history site next.

meanwhile, take a look at shares jumping on reports that espn is seeking to license its brand to major sports betting companies. the move could see disney capitalize on fast-growing online gambling. this is bloomberg. ♪

emily: earlier this year, ancestry.com tapped a former facebook executive to be there next ceo with the aim of making the world's largest consumer genealogy site more social. debit joins us now from palo alto. you are month and at this point and you worked at facebook for many years. why ancestry.com and what is it

you want to bring from a high-growth company like facebook? >> when they reached out to me about the opportunity, the thing that touched me is how important family is to each one of us. it remind me of their people purpose my family came to america with almost nothing and my parents built a life here but they make sure we were connected with folks back home. we have retained a connection over the years, so when i saw this opportunity to take genealogy to something more social, where it goes from an individual activity to a connected immunity activity, i was very excited and that is why it lured me to leave facebook after 11 years. emily: my facebook sign up for ancestry and we put hours putting a family tree together. he had so much fun going back, my parents and my husband's parents are on their. but after it was complete, we did not understand why we needed

to maintain that scription. what is the cell to someone like me? >> starting out with your family tree and those discoveries, you have those aha moments. but people feel like they are running out things to do so one thing i want is make it feel like it comes to life. so like electing your grandmother's wrist. photos of him making dinner with your mother. i want to add this kind of community activities that you are not only doing straight up research but also talking about what you are discovering and the experience and really sharing the memories that you have of each of the individuals. nazr we need to go from here. emily: where do you see the biggest growth opportunity? >> we have something called ancestry classroom already. we would love to expand on that

and really extend that to the kind of activity your son had. i love to have every family be able to access the family tree and that is something we have to expand. but beyond that, there are a lot of rate opportunities >> you were one of a few high-profile women to leave facebook. carolyn everson, a top ad executive is now the president of instacart. what do you make of this trend? >> there are two ways to look at the story. the story is a lot of discussion around our departures what people forget we were there for a long time. when we talk about the departures it is one where we contributed to loving our time there and we love that these opportunities came along right now. so it is really people who are

committed to building a career there and lasting and we stay in touch and we are still close to people at the company so it is a story of women executives getting fostered and getting jobs and going on to do great things in the industry. emily: i asked this question, either any mistakes you made that you don't want to eradicate as you build out a more social site? >> the thing i hope we can do is build the right level of reporting and integrity from the start. as you build out something with social, you want to make sure the connections are good and he wants to capture some of the challenges that facebook has had upfront so you are not in a situation where you have to clean up later. emily: i will go home and talked to my son about what you said. thank you for joining us. that does it for this edition of

bloomberg technology. wall street week is up next. my colleague david weston will be joined by larry summers. i'm emily chang in san francisco. this is bloomberg. ♪

>> you can now fly into the u.k. from the u.s. >> the opening up by the u.k. government was terrific. we saw bookings triple between jfk and heathrow. that was great. most of what we are going to sell is going to be in the u.s.. the u.s. government should open up. you can buy from countries that have from much higher covid infection rates but not from countries in europe where infection rates are much lower. that is not a risk-based approach. when it's going to open up? i couldn't tell you. it's something we could -- >> like christmas? -- by christmas? >> it's really hard to predict

how they are thinking about it. david: one step forward and one step back. final approval for pfizer's vaccine. congress moves forward on spending, but tragedy mars the already difficult loss from afghanistan. this is "bloomberg wall street week." i'm david westin. this week, next on the talk with the quest to turn an iconic american car company into a tech giant, and turn our cars into an app platform just like our phones. >> the relationship with the customer, i think, is why we have a really bright future. david: