♪ >> from the heart of where innovation, money, and power collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang. emily: i am emily chang in san

francisco and this is "bloomberg technology." rhett and goes public. we will hear from the ceo and how the company is navigating supply chain charges. plus, instacart taking on amazon. the grocery delivery of start -- upstart wants to arm grocers with a shopping cart technology of the future. i caught up with ceo fidji simo in her first 90 days on the job in an exclusive interview. plus, how stores are navigating food shortages and barren shelves. and twitter shares tanked despite ad revenue holding up well. i will talk about how twitter will work hard to be part of your daily ritual. first, let's get to u.s. stocks falling from all-time highs. walk us through the day. kriti: emily, we started in the green, ended the day at session lows. it was that check trade that we saw underperform at the end of the day, especially when it comes to the subsectors.

the gold index down, not catching that investor bid that was so strong last week. biotech and the stoxx index also lower on the day. i want to zoom in on the tech trade because we know big tech led the way higher, they also led the way lower. you mention the record highs, we saw a bounce back after that. maybe around 1:30, you did see the nasdaq 100 hit all-time highs before dropping. all about liquidy position when it comes to those tech stocks. it was your facebooks, the amazons that dragged the s&p 500 down. not only was risk assessment on bitcoin sour in the stock market, it was in the crypto market. dropping below 60,000, completely natural as we did just hit record highs, but take a look at this. not a big pullback relative to the rest of the year. let's see if they can rebound tomorrow. emily: thank you. i want to stick with crypto's wild last few days. as kriti said, up above 60, now

below. what is going on? >> we have seen a lot of liquidation, profit-taking, and folks exhibiting caution. there has been a lot of news, and a lot of speculation about what is going to come next on the regulatory side, so we are seeing people decide, i'm going to sit this one out and see what happens next week. emily: we also have more bitcoin related etf's now. is it because there is not a spot etf yet and when does that happen? stacy-marie: the when does that happen is the million-dollar question. one of the things folks are hoping is that the wave of approvals for futures backed

etf's is going to signal at least a more conciliatory regulatory approach that will allow those etf's to happen. we have not seen evidence that there is a softening of attitude towards bitcoin spot etf's relative to futures, that is something we are looking at. what we are seeing is an uptick in filings of other kinds of features packed bitcoin etf's including beverage and derivative focused ones. emily: robinhood's revenue plunged last quarter, 78%. i spoke to the cfo after the show yesterday who told me that sequential decline was, he says, about coming off the record highs of q2, that brought in millions of customers, it just normalized and came off those highs. is that a robinhood issue or a broader crypto industry trading issue? stacy-marie: it's true. i think it is a combination. you definitely had an overall market decline in crypto trading. there was a note on robinhood in which they noted that there was a 35% or about 35% decline in overall crypto trading volume but that was way less than the overall decline that robinhood experienced specifically and you have would have seen in the last couple of days, there's been a

chorus of retail investors calling for robinhood to list the meme coin of the moment, shib inu. emily: shib, what is happening there? stacy-marie: it is on a record-breaking rally toward some number or another. one of the things that is interesting about this and joe weisenthal had a letter this morning talking about the generational shift from doge being the coin of the moment to shiba inu. i think folks are interested in this idea of, one, it is a momentum trade, folks are like, it is going to keep going up and

we have seen that commentary from retail investors, but there are folks trying to argue, this is more developed than just a trade. we are looking to see what infrastructure is happening. are there going to be nft's associated with this? we are taking the position that the way this has gone up and the way we have seen bitcoin come down from some of the highs, we are prepared to see similar downward pressure on shib. emily: we will see what tomorrow brings. thank you so much. facebook could have a new name in the next 24 hours. the company is expected to reveal a new moniker that signals its meta-verse ambitions.

will it be enough to spin the new cycle away from the troubling facebook file? i want to bring in our reporter who covers facebook. we are not going to let the news cycle just spin away but what are you expecting to hear from facebook tomorrow? >> not a lot has been made officially public about what facebook plans to announce. there was some reporting elsewhere that facebook was considering a new name tomorrow. but i think what we can definitely expect is, whether there is a new name, facebook is going to be making the case that this is not a company that is just focused on social media. this is a company that wants to build out what mark zuckerberg has called the meta-verse. i think we should expect facebook executives to be going hard on that point tomorrow. emily: there are a lot of questions about what is the meta-verse and what will freeze.

the meta-verse, we talked to folks, one said it is a pipe dream. naomi: in facebook's vision of the world, everybody is going to want to be spending time together, talking together, whether in a board meeting with their colleagues or spending time with their family in virtual world. facebook expects to be part of that movement to build out those virtual worlds and probably other companies as well. mark sees this as the next platform after mobile phones and that we are going to be communicating with each other. to roger's point, is a risky bet for facebook, but it is one that the top leadership believes in. emily: we saw the workplace technology where they showed folks meeting virtually like any typical conference room. in terms of the new technology, what are you expecting? naomi: we could expect some more updates around this oculus virtual reality unit, perhaps some new programming or new ways to explore virtual reality on that. we could see some updates on its augmented reality front. to your point, the full-fledged vision of the meta-verse is a

long ways away. mark zuckerberg said during earnings that this is not a matter of months, it is a matter of years that it expects to kind of fully advance in this effort. and i think it is important to remember how critical this is for facebook. you know, on monday, the company said that it had a slightly disappointing quarter in part because apple made some changes to its ios software, which aimed to curtail targeted advertising and facebook does not want to be dependent on apple and google to get its services in the hands of consumers. this push into augmented and virtual reality is part of a strategy to survive in the future. emily: all right, we will be watching tomorrow. we will tell you what it brings. thank you. coming up, is a public debut for

rent the runway. we are going to hear from the founder and ceo about how the fashion site is navigating the pandemic supply chain issues and where the closet in the cloud is going next. plus, my conversation with the ceo of instacart. we will talk about her plans for the future of her company, how women will play a bigger role. this is bloomberg. fidji: i don't think it is that hard to find incredibly talented women. i think we should focus on diversity, you can absolutely find incredible talent in the industry, whether it's for executive roles, whether it's for board rules. ♪

♪ emily: after navigating a once-in-a-lifetime pandemic, rent the runway hit the public

market today with a market value of $1.2 million. shares of the fashion site started strong but dropped and closed down more than 8%. i caught up with the ceo about what the day means, where the company is going next, and how they are navigating the supply chain crunch. >> it is such a milestone day. we have gone from one dress in one situation to a whole closet in the cloud that is outfitting women for every situation and as you know, the mission of this business has always been to disrupt the industry, build the largest share closet, but also empower women to feel their best every day and we really had this historic ipo today, the first ever with a female ceo founder, coo, and cfo. it was just such a special thing to be part of this moment, especially after what our team went through last year. emily: we are looking at your

team of power women ringing the bell with your daughters. the first company ever to go public with a female ceo, cfo, and coo. what does that milestone mean? and what should other business leaders take away from that? jennifer: i think that it is something i am so proud of but it shows how much more work there is to be done. i think this is a step in the right direction, but until women led to success is not a headline in and of itself, i don't think our work should stop. i mean, we were able to raise more money today in this ipo then we have ever raised in equity dollars in the history of our business over 12 years and that should tell you something. so, i heard you talking before i signed on about what are we going to do with this money? well, actually being able to raise this level of capital gives this business choices. we are going to grow, bring the business to profitability, we can significantly deal ever -- deal ever -- delever our

business, which will change our balance sheet all with this amount of capital. this is enough so that we can make the choices as to how we continue to drive more subscribers. emily: what are those choices going to be? do you plan to expand to new areas like men? how do you drive that next chapter of subscription growth? jennifer: yeah, so one of the ways we drive it is out of our current customer base. we have 2.5 million former customers who have all rented for special occasions for the most part and they have been this productive funnel into subscription in the past. every year, 50% of new subscribers are former customers and 50% are new to rent the runway entirely. we continue to see this stronger -- incredibly strong virality of our business. every customer refers about 10 of their friends for free, so the business has extremely high growth because of that. now, the biggest opportunity we have is just flat out brand

awareness. our brand awareness is very low, it is only 20%. and that brand awareness is primarily for us as a special occasion rental business. what we plan to do is change our marketing dollars and how we invest our marketing dollars into first a subscription first approach so driving people to try subscriptions right away as opposed to using our reserve business as the direct funnel, then what we intend to do is spend more money of our mix on brand marketing. we have run some brand campaigns that upped our traffic to the site by 15% and we do a great job at converting people once they come to the site but fundamentally, customers need to know that we offer the cost in the cloud and it gives extra buying power for $135 a month. emily: how is rent the runway

handing the operational demand of the warehouse shipping, logistics challenges, the supply chain issues? are you seeing delivery or apparel setbacks? jennifer: so, we are not seeing any supply chain issues. and one thing that was fortunate about the pandemic is our shipping volume was very low. it gave our leadership time to go into our operations, add new -- really high amounts of new processes, new technology, innovation, more data into our facilities that enable us not just to come back to scale quickly, but come back to scale with so much more capacity than we have ever had. so, the operational infrastructure of our business can currently support 6x today's total subscriber count and that is because we were given this period during covid where we were able to innovate because the shipment volume was low. emily: rent the runway's jennifer hyman there. coming up, the fight to protect children and teens from big tech continues. more senators calling for more

action from congress. that's next. this is bloomberg. ♪ >> we know that today, it is not an overstatement to say that big tech, facebook, google, tiktok, snap and others pose a threat to our privacy, a threat to our health, and a threat to our democracy and most importantly, a threat to the children of the united states.

♪ emily: we need to protect our children online, that is the rallying cry of senators markey and blumenthal as they urge for congressional action to keep teens and kids from online manipulation and harm. they are calling for an update for the child online privacy protection act. this as congress grilled

executives earlier this week from snap, tiktok, and youtube over online child safety. senator markey even asking them if they would support an update to coppa. take a listen. sen. markey: you have had a chance to look at the updates i have introduced. do you support it or not? >> we would love to talk to you more about -- sen. markey: listen, this is what drives us crazy. we want to talk, we want to talk -- this bill has been out there for years. you still don't have a view on it. emily: i want to bring in the leader for global commerce. what do you make of that exchange? >> i cannot help but agree with senator markey. this bill or versions of it have been out for the last decade. companies have had time to come back with real concerns and instead, what they keep doing is saying we want to talk.

we want privacy legislation and they will not agree to anything. kids are the ones suffering. emily: what would this bill actually do and would it be enough to protect kids online? >> this bill would be a huge step forward to protect kids and teenagers online, and that's really critical. right now, a 13-year-old is treated like a 35-year-old. they do not have any additional protections online in america, except some in california. this bill would ensure that young teens, their teen-15-year-olds, -- 13-15-year-olds are protected, it would flat-out ban targeted advertising to children. it would establish a digital marking bill of rights for teenagers, it would establish privacy at the federal trade commission, who is the enforcer, and it would ensure that kids and teens are protected on the sites they are on. sites could not turn a blind eye and pretend like they did not have young users, which we know is how many companies operate. emily: many of these companies

make the argument that kids are using technology whether we like it or not, so someone has to build the experience for them. who should be building those products? do you think it is youtube or facebook or snap or instagram or tiktok or should these be publicly funded projects or something else? aerial: i think -- ariel: i think it would be better if these products and projects were not being done by companies whose business model is profiling children and teens and adults and making money off of advertising and off of data mining. it would be better if we could have support for high-quality education where the purpose of the product was not to collect as much information as possible or to manipulate teens and children into spending more time online. emily: where would that support come from? the government? would that be publicly funded? some philanthropic donor? should the company's band together and fund it themselves? ariel: i think the companies can be a lot more creative than they are being now. there are ways to create compelling children's products

that do not rely on collecting personal information from them or taking advantage of them was -- or psychologically manipulating them. it would be great if we got a -- if we got digital government funding, although i know government funding is a touchy topic now as always and it would be great if we could see other philanthropic support step up but there is so much companies can do and they have so much money, they can do a lot better with kids. emily: what you see as the biggest problem with kids and technology today? or problems? there are many. ariel: it is hard to have one problem. we see a lot of interrelated problems. we see kids who are uniquely vulnerable, who are prone to over sharing, who don't understand how data collection works, and who are susceptible to advertisement. they are put in this environment where they are profiled by companies, they are targeted with unique ads and messages that are specifically tailored to them and their vulnerabilities. you are a teen girl wondering

about dieting, you are going to be pushed extreme dieting content. you are a teen boy, maybe you are going to go down some radicalization rabbit hole because they think that'll make people looking longer. there are concerns about popularity and seeing how many of their peers get more likes than you, there are concerns about unrealistic body image in terms of unwanted spending because they don't realize -- there is a host of issues and problems that are facing teens and children these days. emily: as a mom, it is terrifying, and i know that so many parents feel like they have lost the war, they have surrendered already, especially after the pandemic when technology was necessary to keep our children connected to the world. what is your advice to parents right now as schools are reopening, the world is re-opening? how do we restart good habits? do we take everything away? is it just some in moderation?

what do we do? ariel: as a mom, i struggled with that myself and sometimes my kid is on her tablet while i was doing work talking about the risks of technology. as parents, it is important that you talk to your kids, we see what they are doing online, that they feel comfortable talking to you about what apps they are using, who they are communicating with. you cannot trust the companies. it is critical for parents to speak up, tell your representatives if you don't like what is going on, because now is the moment that we could really see change in congress. emily: all right, ariel fox johnson, we could debate this for hours. i appreciate you sharing your insights with us today. senior counsel for global policy at common sense media. thanks so much. coming up, instacart is taking on amazon and adding two new board members ahead of a public -- much-anticipated public offering. after the break we are going to , hear from the ceo of winston -- instacart after her first 90 days on the job in a

wide-ranging conversation from food shortages and the future of shopping cart technology. that is next. this is bloomberg. ♪ this halloween,

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♪ emily: welcome back to "bloomberg technology." i'm emily chang in san francisco. let's get back to the markets, looking at grocery delivery startup instacart. kriti gupta has been following the grocery space in new york. what are you seeing? kriti: let's just start with the background here. food prices are surging and instacart might be considering an ipo at some point in the future, potentially taking on amazon. i really want to start with the food prices, because you do see inflation becoming a major theme, even for these tech companies. food prices gained.

let's put into perspective those companies that have that -- what those companies that have that platform are doing. you can see instacart may have lessons to learn, going all the way back to 2017, there is a tiny dip in kroger shares five years ago. that was a huge deal, that is when amazon announced their acquisition of whole foods and since then, you can see how much they have gained. walmart ramping up their own e-commerce. you can see how much it outperformed kroger. you can see that groceries are becoming as much of the tech universe as amazon, apple, especially with this pandemic era. i want to show you shares of say grubhub, doordash, a mixed picture, very volatile. if this is an environment that instacart is trying to enter, they may have their work cut out for them, really competing with amazon, competing with walmart,

kroger, even some of these food delivery businesses trying to expand. let's see how instacart fare s. emily: thank you for that roundup. i want to stay with instacart and the new ceo. three months into the job, fidji simo has big plans for the upstart now valued at $39 billion. i caught up with the former facebook executive to talk about food shortages and the future of their ambitions to take on amazon as a platform for grocery stores everywhere. fidji: fundamental to what grocery retailers want from us is to help them secure more customers. our knowledge of consumer trends , our knowledge of helping the consumer online is the best possible way, it is helping groceries. i think you are right that this vision of becoming a retailer enablement platform is something that is incredibly important for the future of the company. emily: who do you see as the

biggest threat? is it amazon or could it be an uber eats or doordash as they get into grocery? fidji: the grocery market is very big. it is going to attract a lot of players. for us, we have a different strategy from the players you just mentioned. when it comes to amazon, we know the technology we need to compete with amazon, which has very deep pockets. when it comes to platforms like uber eats and doordash, these platforms tend to be platforms that focus on aggregating demand and over time, on inventory. that is not our strategy at all. our strategy is let us compete with grocers and enable them to compete in this marketplace. emily: you are buying taper ai, your biggest deal yet. they offer ai for shopping carts, for checking out, the

idea being, as i understand it, that you might be able to check out directly from your shopping cart in the future. what is the vision as you see it? fidji: with a technology like taper ai, not only can you check out without having to wait in line, which we know is a pain for consumers, but you can also have an experience for you where we can show you recipes with the items in your cart, we can suggest products. and so, we can use technology to break down the silos between online and in-store and enable grocers to have a more personalized and way better consumer experience. emily: you are also announcing two new board members, the ceo of the "new york times" and cofounder of homecare assistance. what do they bring to the table that instacart does not have yet? fidji: in the case of meredith, you know, she has seen an

industry in transformation and she has taken an incredible brand and made that digital transformation at the "new york times." i think she is going to help us tremendously in understanding how to take some of our grocery retailers and help them through this digital transformation and be the best partner we can. she has also built an incredible subscription business at "new york times." we are seeing instacart express becoming more important for business. in the case of lily, she has built an incredible business in a highly complex industry. so she brings that perspective as well as the perspective of someone who has advised a lot of local marketplaces and worked with front-line workers for many years. so, really looking forward to understanding our ability to bring this business to scale. and welcoming them to the board. emily: now, since you have

joined the company, you have made multiple hires of senior women including carolyn everson, who you worked with at facebook. -- facebook for many years. you look at the tech industry, this is almost unheard of. i mean, your management team is majority women. that is incredibly rare. what do you have to say to companies out there that are looking hard but still don't have much to show for it? fidji: look harder. [laughter] you know, it is not -- i don't think it is that hard to find incredibly talented women. i think if you really focus on diversity, you can absolutely find incredible talent in the industry whether it is for executive roles, whether it is for board roles. if anybody is really committed to that and struggling, please reach out to me because i have a long list of wonderful women who would like to be on board and would like to be part of great executive teams.

in our case, we think it is incredibly important because 80% of our customers are women and 70% of our shoppers are women. when i look at the company we are building, it is important that the management team and all the way to the board represents needs of our customer base. emily: it is going to take time to realize a bigger and more ambitious vision of instacart. what does that mean for the timing of an ipo or public offering? fidji: well, you know i won't comment on timing, but what i can tell you is that for us, the focus is not a good ipo, it is really building a great public company that will withstand the test of time. of course, we want to be a public company someday but right now, i can tell you we are all incredibly focused on building the business and building that new vision that we talked about of being a retailer enablement platform for our partners. emily: could we say an ipo is not a priority for 2021 or 2022? should we be circling 2023 or

beyond? fidji: that is an excellent point. it is a long journey. emily: the world is going through some major supply-chain shocks right now. some schools have not gotten lunches that they were supposed to get back in july. what are you seeing in the supply chain? how is this affecting instacart and grocery stores and your customers? fidji: we are already certainly seeing issues with finding products on the shelves. we have 500,000 shoppers in the aisles of our grocery stores every day and as a result, we get a lot of data from them about what is not on the shelves, so we send that data back to retailers and realize it out of stock and that -- realize it is out of stock and they act need to -- and they need to act

on that. that is important data for them to be able to take action not just with things on instacart, but also the management more generally. emily: would you ever look beyond grocery into food delivery into more directly with some of the other folks that we mentioned, uber eats, doordash? fidji: we think the grocery industry is so big that we do not need to go outside the industry. what is making us so strong is actually that we are incredibly focused on the grocers. we are obsessing over whether an avocado is going to arrive. that is a very complex industry, it is what is making us different, so we don't want to lose sight of that. however, we see grocers often developing meal solutions and prepared meals is a very important part of their business.

helping them with all parts of their business. emily: instacart ceo fidji simo there. you can see more on bloomberg.com. twitter stock drops after the outlook on expectations. we are going to hear from the cfo, his response about what he is focused on and making twitter part of your daily ritual. this is bloomberg. ♪

♪ emily: declines for ebay after hours. the online retailer gave a revenue forecast for the current quarter that missed estimates, inventory shortage is tied to the shipping crunch clouding the holiday outlook. while the pandemic gave ebay a boost in 2020, as consumers moved online, momentum is fading as folks resume traditional spending patterns.

with earnings in full swing, so many companies facing that shipping supply chain crunch, let's recap a few. google says it expects some challenges as it rolls out the new pixel 6 series of smartphones, alphabet reporting that topped estimates. microsoft's quarterly revenue climbed 24% and its cloud computing business climbed, but xbox held back my snags. amd, it gave a stronger forecast indicating market share, particularly in servers despite a tight supply. sticking with earnings twitter , shares ending the day down after reporting third quarter results that lagged estimates and provided a muted outlook as to whether apple's ad tracking

and supply chain impacts to advertising. i spoke with ned segal, twitter's cfo. ned: we are seeing positive trends, growing the audience 30% year-over-year. delivering 37% revenue growth gives us the wind at our backs. we see a lot advertising for services and digital goods on twitter. that is more than half of the ad revenue that we get. although you can see great ads for phones and dvd's and other physical goods where there may be supply-chain constraints, there is a lot happening around streaming services and movies and other services or digital goods such as our map business, which grew faster than overall revenue this quarter. there's lots of great things that we think can help us continue this momentum. emily: shares are down this morning 8%, down significantly

over the course of three months. where are investors seeing the weaknesses? ned: i suspect you will know better than i. some of the things that they might be concerned about. we were so pleased last night to share a few different airgas -- areas that we are focused on. one is continuing to help creators get paid on twitter. for years, they have been building their audience and getting paid somewhere else. those days are over, they are going to be able to monetize their audiences on twitter through many things over time. we also shared that we plan to continue to invest to drive growth. we are going to grow headcount over 30% this year and that posture will not change as we look ahead because we feel there is so much more work we can do to serve the public. emily: you talked about tipping.

how popular has the tip chart -- jar been so far, specifically tipping in general and tipping in bitcoin? ned: i have received some tips in bitcoin. it is fun to play with the product and get people the opportunity to do so. we think about tips as an example of how we want to help people get paid. if you like what somebody is saying, if you want to contribute to a gofundme or with bitcoin through a lightning wallet or you want to use the cash app or other things, we just want to make it as easy as possible to allow value to transfer form one person to another on twitter. we think about that less from our revenue perspective and more about helping people get paid because if we do that, there will be so much more great content and we will continue to grow our audience on twitter. emily: fair enough. -- alix: fair enough. this is alix. thank you for joining us. fair enough, but you are going to want to go to revenue and

grow the top line. i'm wondering how much the new products are going to contribute to the top line growth and when can we expect real numbers there? ned: we grew revenue 37% this quarter so i think you are seeing it already. we got it for the typical seasonal strength that we see in q4, the olympics were a strong event for us, we exceeded our expectations. when advertisers came to twitter during the olympics, 12 of the 14 olympics advertisers amplified their campaigns on twitter. it is a great example of how we are able to deliver for advertisers. we came out with a new format called the multi-destination carousel, so you can click through and go to different places on an advertiser's website, that is driving better -- 20% better click through rates. these are real proof points that we are able to deliver better for advertisers. emily: twitter cfo ned segal there. coming up, more tech results thursday when we hear from apple and amazon. after the break we are going to , talk about what you can expect. that's next. spotify's move into podcasting starting to pay off. the company reporting a 75% jump in ad sales for the third

quarter and projecting that for the first time ever, annual ads sales will hit the one billion euro mark, just under $1.2 billion. investors have been hoping spotify's investment in podcasting would turn its money losing music service into a profitable audio service. this is bloomberg. ♪

♪ emily: it is another blockbuster deal involving car rental company hertz and tesla. uber drivers in the u.s. will be able to offer services with tesla electric cars rented from hertz starting next week. hertz will supply up to 15,000 teslas by 2023. earlier this week, hertz ordered 100,000 cars from tesla. the covid-19 shots for the youngest school-aged children in the u.s. is on track for likely approval.

a panel of u.s. experts says that the benefits of a vaccine made by pfizer and biontech for children from five to 11 exceed its risk. the food and drug administration is now expected to issue an emergency authorization. andy earnings story continues thursday with apple and amazon, the iphone maker and e-commerce giant out with quarterly reports after the bell. i want to talk about what is in store. matt, i want to start with you, given how pernicious these challenges have been. how are we going to see this reflected in amazon's results? matt: a lot question marks. amazon itself felt compelled to put a post out this week saying we have a bunch of ships and planes and redundancies in our warehouse systems. we think we are going to be ok but there are questions about how their going to does how they

are going to fair. -- how they are going to fare. they are a ton of new warehouses to get through this, but it seemed kind of stuff the rest of the economy is. emily: isn't the problem that the supply does not exist, not that the logistics operation is not ready for it? matt: for sure. i think amazon is going to counter this on independent dollars. those folks might have access. if there are popular items, they are going to count on there being a ton of sellers willing to list those other goods. emily: i want to move onto to apple because apple also seeing supply chain challenges which i'm assuming will dominate that call. the company could cut production of its new iphones by 10 million, which is a significant amount and it is a huge generally holiday device. what are you expecting? >> i would say 90% of the discussion will be around that topic and whether they can make up for that over the next couple quarters. if they are not able to get parts and stuff done by summer

of next year, then it is going to be difficult to come up with a decent total iphone shipments for next year because then people are going to try to wait for iphone 14 to come out. i think it is the most important thing at this point. emily: what else are you looking at when it comes to apple? i mean, obviously, the availability of the iphone is key, but there are plenty of other devices, and the services business as well. anurag: the services business is ok, but it runs into a tough comparisons going into this quarter and next quarter. iphone is the thing that drives apple's total revenue. macs are a very small portion of total revenue. it will be only iphone and iphone oriented stuff. emily: what else are you watching moving into the holiday season? my mom is already asking what my kids want for christmas because she is worried she will not get what she wants. matt: amazon is there with you. one thing i'm looking at is

amazon's ad business. like a lot of companies, there are worries that amazon is going to see some tailing off because folks don't have inventories. you don't want to click an ad and find something is not available. i'm curious about how amazon fares if inventory becomes a problem. emily: we are also going to be looking at the first full quarter under andy jaffe's leadership. what can you tell us about how the transition has been? matt: it has looked smooth from the outside and the supply chain stuff was stuff that predated him. we have yet to see him put a stamp on the business. there is a bit of a new tone at the top but i know think we are -- but i don't think we are going to see anything showing up in the results. he is probably not going to show up on the call himself. emily: turning back to apple, where you have a more steady leadership team that has been in place many years, what are the things you are going to be

watching? we have reported on some of the newer accessories, new airpods, the macbooks, the move to the new m1 chip and all of the possibilities that that opens up. anurag: the m1 chip is an important event for apple. they are going to take some share away from the high end pc's definitely and it is a remarkable upgrade compared to what we had before. the other thing is that we do want to hear what are they going to do with some of the fee structure that they have for the app store because that is not going to hit this quarter or perhaps next quarter but that is an important element, how are they thinking about those fees going into next year, and just because google got their fee into their app store, we want to see what apple has to say.

emily: we will be across both companies. appreciate it. that does it for this edition of "bloomberg technology." tomorrow, we are going to be joined by president of shopper fight -- shopify, harley finkelstein. i am emily chang in san francisco. this is bloomberg. ♪

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