>> from the heart of where innovation, money, and technology collide, this is "bloomberg technology" with emily chang. emily: welcome back to "bloomberg technology," coming up in the next hour, out with the old and in with the meta, mark zuckerberg goes all in, rebranding the entire platform,

even changing facebook's stock ticker. we will talk about all of it with meta's global business group vice president. plus, apple and amazon plummeting, projecting holiday sales that fell short of estimates indicating a pandemic room for e-commerce could be over. in the meantime, apple, iphone, mac, falling short of estimates. we will break down all the results. big tech bands together to build a more diverse workforce. we will talk exclusively with the chief diversity officers of snap, uber, and spotify to make -- about the new plan to make things more inclusive across the tech industry. the social network that we all knew as facebook for the last 16 years has a new name and it is meta. mark zuckerberg announced the

change during the tech conference. take a listen. it's the most definitive signal yet of their decision to focus on the meta verse over the next 10 years, but is it distancing themselves from the idea that they value profit over people? you saw the sign change happen right there over your shoulder. >> nine second no change to the facebook properties. it's the biggest signal yet that facebook or now meta is taking its future on the meta-verse and the stock ticker will be changing on december 1, all things being equal. this isn't just about gaining. they unveiled this in a range of

cases like fitness and health, a big surprise for virtual health fitness, gaming, the new grand theft auto four virtual reality. big for the economy he said but also big for the environment. imagine a situation where instead of flying across the country for a meeting, you are both they are, one-on-one in a virtual space. the vision that he outlined but was candid, saying it would take a decade at least before it had mass reach. emily. emily: all right, thank you so much. later we will be speaking with nicola mendelson right here on "bloomberg technology." how did the markets take it? >> positive on the day, but let's take a step back as we see the months where facebook has been trying to deal with apple advertising, growth concerns and

of course, that whistleblower testimony. what i really want to point out though is what this new move is going to do to the bottom line. $27 billion, that's how much they are expected to jump in costs in 2020 two. that's one quarter of their annual revenue. potentially hitting the bottom line for long-term investment. hitting those earnings stories, facebook is the only mover on the day. amazon is down 4.3% after hours, putting up a poor holiday sales forecast, attribute and got to supply chain concerns and the fact that they will have to hire even more delivery workers, cutting into their profits and taking it on the chin. they have been down 6% after hours. apple seems to be the big story, sky works and broadcom have paired the initial games --

gains that were down after apple was also missing on the total revenue with iphone and mac revenue. what did well was the ipad revenue. do you start to see them come back up going into the holiday season? regionally china seemed to be the outperformer with the rest of the world, not so much. emily: julie, what is your take away? with mac and iphone sales missing, it's kind of a big deal, right? julie: i think missing is like missing expectations but apple doesn't move in double-digit growth here, year in and year out. i don't think anyone is stressed about apple. most of their sales still come from hardware, yes.

smart phone or computer, there's still a lot of upside on the hardware side. the target audience, price-sensitive, confidence going through the holiday season . it's one of the biggest seasons of the year. apple doing well to bring consumers into their ecosystem to sell services. the marketing is sophisticated and i think certainly if we look at, according to forrester, 20% of consumers are concerned with the value of what they buy. i don't think anyone is worried about apple or the expectations on this quarter. despite supply -- emily: despite supply constraints, are you not worried? they could cut production by as much as 10 million units? julie: supply chain is a risk

and if you talk about the costs of labor in stores or the delivery, it's certainly a risk. we are talking about a company here that might be missing expectations and might not sell as much as eckley, but it is still a strong company that continues to perform amazingly well, with or without a pandemic we are still at home working, at home with education and streaming media and apple is selling goods and services. emily: but with sales doubling on the ipad, what do you make of that in china? julie: i'm not a expert it in the chinese market, but they do a good job selling devices and services, media or entertainment, they do a better job with that ecosystem, keeping it there, the lifetime value of the customer is high for them.

that would be one of the reasons. emily: thank you for joining us and weighing in. a story that we are continuing to watch, the act blizzard ceo is looking to cut compensation until they meet gender equity goals, making $154 million last year. a little more than 62,000 dollars. last week activision failed to convince the court to drop the sexual harassment case and determination case against the company. coming up -- >> if we all work at it, in the next decade the meta-verse will reach one billion people, post did -- billions and digital commerce, supporting the jobs of millions of readers and developers. emily: mark zuckerberg is all in on the meta-verse.

they unveiled verizon home, oculus quest to, and the virtual reality headset, the biggest news being the total rebranding, unveiling their brand-new name, meta. we spoke to the global business group vice president about the game plan, next. this is bloomberg. ♪

>> it's time for us to adopt a new company brand to encompass everything redo, reflect who we are -- we do, reflect who we are, and i'm proud to announce

that our company is now meta. caroline: -- emily: there we have it, he made it official, rebranding facebook, decoupling the corporate identity from facebook, putting in a shift to an emerging platform focused on virtual reality. because the meta-verse the next frontier. the stock ticker should be changed. to better understand the shift, we are joined by nicola mendelson. the vice president of the meta group. just a few hours ago you worked at a company called facebook, now it is meta. given that the vast majority of the company doesn't work on the meta-verse at all, why take this risk? nicola: the excitement is very

real and meta captures where we are going in the future we want to build. the focus is all around. letting people connect and find communities in the way that they had with the facebook family of apps for the almost 20 years that we have been going area it really reflects the confusion there has been out there. we are now a whole family of apps and services, so many others. this actually brings together all of the apps and technologies under one new company brand. emily: what is the horizon marketplace?

how will people make money in this new world? nicola: horizon is the social platform we will be building for people. with horizon world, that's where you can build worlds and jump into them with your friends, your family, your colleague. discovering new places you might want to go meet together or play games in or get to know different members of your community with different avatars you might have. horizon home this our own vision for the home space in the meta-verse. horizon workrooms are already up and running and are the collaboration. i was just in a meeting last week and that feeling of sitting around a virtual table in this world today where we are all working in a much more hybrid way, is very different from the one on one, straight into a screen like we are doing now. you feel like you are sat around the table, turning left or

right, depending on where the audio is coming from. it's a very different experience. an enhanced social experience. caroline: -- emily: what if it makes us more disconnected? more antisocial, replicating so many of the criticisms that facebook faces today? nicola: it's not the case from the experiences i've been enjoying, when i've been playing games, meeting and hanging out with people. i've been to the moon. probably not something you can do, i've been there with my colleagues and we took it there with virtual selfies against the backdrops of the sun. it's to make sure that we are addressing in building responsibly for the meta-verse. there are a couple of things to point out that are important.

many different companies, many different developers and businesses will be building it together. what i think is important is we are building and the principles of safety and security right in from the start. these principles as a society will make us so much better to tackle the new challenges. emily: facebook files have unveiled the ills of social media and from the perspective of the public it appears you didn't act on them, that instagram was toxic to teens. less than 5% of hateful content is taken down. is facebook taking a longer look in the mirror? running away? for are you committing to double down or take accountability for the issues? nicola: what we are seeing right now is to -- is a coordinated

effort to leaked documents that doesn't reflect our company in anyway and i'm proud of our record navigating these complicated trade-offs around services of scale. look at the considerable investments i've made. $5 billion on safety and security. more than any other tech company. people working on safety and security for the company, we are not running away and our understanding the responsibilities that we have. you can see the progress we are making across these areas. emily: 40,000 people serving 3 billion users. is facebook too big to govern? there might be so many smart,

well-intentioned, capable people working there. can you moderate these in every country and every language around the world? is it impossible for anyone company to do? nicola: we have set out to be open and transparent. we published four times a year the community standards enforcement report. we will have an independent auditor that can validate and look at the result. this is the most sophisticated work going on and i'm really proud of that work. to your question, we are not satisfied if there is anything on the platform that could in any way cause harm to somebody. we are committed to continuing to getting it down off of platform. we are absolutely committed to doing everything we can to make the numbers as small as

possible. emily: the facebook core ad business is the engine of growth for now. twitter and snap took a hit because of the apple ad tracking changes. they are posting earnings results today. do you have words for apple right now as someone who is so influential, in facebook, or i should say meta's ad business? nicola: it has been benefiting their bottom line at the expense of smaller businesses and at the expense of creators. we are seeing it play out now. small businesses have really small budgets and for them to work it has to reach the customers that matter to them. being able to reach out to find

the customers that matter to them. at its heart we believe that privacy and advertising can coexist without the collateral damage caused by apple. emily: i'm curious if there is any indication that mark zuckerberg might step back as ceo, move into a solely chairman role, like we saw serge duet google. similarly for cheryl, will she take on a different role or take a step back? nicola: no one is saying that the ad business is important, it's an important part of how we do business and i wish you could see what we just came off of with mark and cheryl. emanating from mark and cheryl and all the leaders of the company, sharing and exploring,

having fun with our employees. it really coasting to the next vision of the company in the decades ahead. emily: as someone who is critical in running the global ad business, i'm curious what the ad opportunity is that you see in the meta-verse? how effective do you think ad targeting will be and tell us your experience of what you think advertisers will get out of this? nicola: it will be an exciting opportunity for advertisers. it will be similar to what's on the internet today, advertising opportunities, the way that we build these products first and foremost is we start with people and we make sure that, we understand how people are using and enjoying our products and then we go from there. there are going to be opportunities for creators to make sure that we are building the tools that they need in

order to help them be successful there as well. there is a lot to be excited about and i am already seen businesses exploring what it's like to actually experiment with augmented reality. the fact that you can go on instagram today and virtually try on rain bands in the ray-ban shop or at charlotte where you can try on the makeup in the lipstick, we are seeing rands start to have fun with it. emily: advertisers every day, are they concerned about the social media on what? are they can turned about the claims and revelations of the whistleblower, frances haugen? they want how any advertiser can justify advertising on facebook platforms. nicola: i'm having thoughtful and considered conversations with advertisers and what they are acknowledging and seeing is the thoughtfulness of the

approach, the investments we are making, and the considerable dog rest we have been making over the years. they recognize how the, how the conversation has been taken out of context. they recognize why it's right for a company to do research about its own product. to understand constant improvements, they understand and think it is an important part. they understand the commitment to the work that we do with organizations that we work with, work that we stand by that is really important to us. emily: nicola, joining us on a late evening from london. thank you for joining us in sharing the new vision. we will be back with more of "bloomberg technology" after this quick break.

emily: the dallas mavericks is having a giveaway for fans. they have announced a five-year partnership and fans that salina -- sign up with the cryptocurrency trading platform will get $100 in free bitcoin. microsoft is getting back into the personal computer game business. the maker of xbox has come out with age of empires four. the first installment of the series in 16 years and the executive in charge said that you have to go beyond the consulate to speak to pc gamers as well. coming up, shop a fight and its six-year earning streak comes to an end and coming up i will speak with the company president about what he needs and get that back. the apple ceo is speaking on the

earnings call right now and take a listen to what he had to say about apple tv us. -- plus. >> in its first two years they have already proven themselves to fans around the world and i want to congratulate the incredible actors, writers, storytellers, producers, and everyone else behind the scenes. ♪

emily: i'm emily chang we want to get back to tech earnings. >> after hours, let's kick it off with facebook. they have a major change in name, meta-paired -- meta. amazon and apple are taking the cake because they both missed earnings. the supply chain cost and labor

shortages are going to contact them. only ipad revenue was up. both of the stocks are under pressure. let's go to big tech in canada. shopify reported earnings today and missed estimates. it's up to 7% on the day. analysts say it's because they have major long-term potential. not only is shopify higher on the day, it's higher on the year. outperforming the canadian benchmark which is the largest member of. it's also outperforming apple, amazon, facebook, and s&p 500. emily: i want to stick with shopify. joining us is the present. -- president. >> we are in this new normal

post-pandemic. i don't think there's anything average about what shopify and merchants are building. as things begin to settle into the post-pandemic trend, our shops are growing at an extraordinary speed. it took 15 years for our merchants to get to $200 billion. when you look at revenue, we hit 1.1 billion dollars in revenue, up 46%. we are seeing more merchants coming to shopify. they are taking more of our services. we are building the essential internet infrastructure for commerce and we expect q4 to grow substantially faster than the retail sector overall. emily: how are the supply chain issues affecting shopify and the

businesses that rely on you? >> we did not see material impact from supply chain. delivery times did not change materially from q3 last year to this year. the small businesses and merchants that use shopify are always facing new challenges whether it be the pandemic or the supply chain. our merchants are good at being resilient. we also have a very diversified merchant based. many of those sourced locally and they have room in their margins to absorb the shocks. most of the merchants on shopify, they use the direct consumer model. they are not like big box retailers on razor thin margins. when you combine the fact that they have a relationship with the end consumer, they make their own products, we have not

seen a slowdown. if supply chain becomes a long-term issue, i think merchants will need shopify or than ever before to find efficiencies to go direct. we saw other brands all sign up for shopify this quarter. emily: shopify is a huge partner of facebook. what do you think of the new name? the metaverse future and how influential will meta-be in the future of commerce? >> facebook has been an amazing partner to us. it better articulates with their planning. the key for us is we believe the future of retail is going to be retail everywhere. online, off-line. we announced a partnership last week with spotify.

we have a partnership with tiktok. when facebook launched messenger, we were the launch partner for instagram commerce. we are now putting shopify pay into facebook. if the metaverse is a place where shopping and commerce happens, we are fortunate facebook has been a great partner for us and we suspect we will be the partner inside of facebook or meta. emily: thank you for joining us. now to amazon. lower after hours after forecast for holiday sales that fell short estimates. ce a warning that supply chain issues could cost the company several billions during the holiday season. what is your take on the holiday

quarter and is the pandemic e-commerce boom over? >> is the e-commerce boom over? the crazy growth might be, but that was unsustainable. there was some disappointing guidance. there are so many headwinds this quarter. labor supply shortages. the need to pay higher wages. the global supply chain issue. other things that happened this quarter was there was no big -- they pulled prime day. there was also a higher return to store shopping this quarter. more vaccines and people want to go shop in stores. go figure. emily: is there anything amazon can do to deal with the supply chain issues? especially during the shopping season. how do you expect them to whether -- weather the

challenges? this seems like a hard one. >> what amazon does well is the third-party marketplace. they use the third-party merchants tefillin selection. that's where some merchants might have issues with supply chain, but not everybody does. these sellers can fill in selection gaps and that's one of their secrets to success. if you need something, you can always buy an amazon gift card. emily: that was my next question. should we temper our expectations for what we can get this holiday season? >> that's what everyone has been saying. amazon started black friday deals on october 4. what we're going to see is constant deals throughout the quarter. people buying holiday gifts and that's what the industry has been saying. if you wait till the last minute like many people do every year, you may not be able to find that

especially in consumer electronics and toys. emily: thank you. coming up, calling for more diversity in tech. we will be joined by diversity equity and inclusion experts about a roadmap on how to create a more diverse and inclusive tech industry. that's next. this is bloomberg. ♪

>> the number one word is ambition. we are not where we need to be. about 120 countries have put in new commitments to 2030.

we are not going to get under current plans where we need to get to which is harboring greenhouse gases by 2030. they need to raise their game. some have already raised it others need to do so. emily: that was a dire warning ahead of the cop26 conference in glasgow. you can catch more on that interview on bloomberg technology tomorrow. a new report action to catalyze tech brought by 29 leading equity and inclusion experts from academia and the tech industry. they call on tech companies for this industrywide challenge that

must be tackled by together. for more on that, my guests are from snap, spotify, and uber. you are part of a group of companies banding together to improve diversity in the workplace. how will you at different companies be working together? emily: essentially, -- >> taking collective action. we win or lose together. in products quite often or with the tech products we create, we all lose on our own, that is not the same with this. two things strike me. the tech industry has failed on

de i. there are passionate committed clever people in the tech industry want change. this lays out a roadmap for that change. it shows how we can come together and also a bit of inspiration. if people want to know how to transform de i in the industry, i hope they will check out the report. emily: you are all competitors in the war for talent is brutal. i wonder travis why align yourself? >> it's an opportunity for us as a system we can impact change. the more weight work together, the more we can attract individuals into these amazing opportunities. here at spotify, we announced the work from anywhere program

were we are democratizing the ability to work outside of the major cities, you can work from anywhere. we believe this is one angle and one opportunity that talent all across the globe can get into tech. we're are trying to identify ways along with our partners, we believe we can come together to increase not only the attraction to the tech industry, but also democratize and develop ways to increase access into different opportunities. the mindset of the distributed first workplace. the only way that's going to be possible is if we come together as an industry to solve this problem. i believe that's what the egg report helps us to. -- report helps us do. emily: tell us what you are committing to do to boost access. >> at the core of this, it is

spelled out in the recommendations, it's modeling and inclusive talent. and the leadership, we are going to share what we are doing. we have demonstrated that we are able if you look at our pay equity, we have been able to achieve pay equity for the last three years without making substantive changes. that's because we made changes in our hiring process, the development process and promotion process. then, sharing data again it is so important for us be transparent about where we have made progress and also where we failed. it is only in that transparency that we will all learn together. finally, it is expanding the pool. right now, we all trying to get

a share of the pool because there are a lot of stereotypes that prevent us from seeing talent and other avenues. it's about investing, growing the pool of talent. that's the only way we are going to address the underlying changes -- challenges within the industry. emily: i wonder what discussions you have had about this report. have you talked to evan spiegel? has he committed to making di achieve company business imperative and what do you expect from him? >> absolutely. this whole initiative came out as a result of a comment he made to me because i was saying here's the plan. it's about how to get more inclusive workforce product culture. i said to him the thing is no one company can solve this. if we wanted to do it right, it

would be a cross industry approach. he was like than that should be at strategic priority. we come to this from a position of complete humility. if we are to ask the questions together, that's the way we are most likely to find success and accelerate what has been agonizingly incremental progress. we have to address the root problems. at the moment, we just plate musical chairs. at worst, we are pushing each other's employees. at the end, we have to expand the pool of talent by addressing educational inequities and other systemic barriers. emily: there's a huge disconnect between what executives think about the workplace and what workers think about the workplace. research found that 75% of executives believe that women and minorities feel a sense of belonging in their organizations.

that belief is only shared by 24% of women and underrepresented minorities. how do you address this? >> the research shows even in this current state, you have to think about connectivity and community building when it comes to the sense of belonging. it has to be intentional and you have to shift mindsets and behaviors. this is paramount to what the coalition of individuals are coming together to address. the old way of doing things is no longer the way of the future. we have to come together to think strategically about how do we establish community in the workplace but also be intentional. the data shows that individuals from excluded communities are having a different experience. it all starts with the data, and that will help us think about strategies and solutions. if we come together, it can

accelerate the diversity. it will be able to -- the only way to do that is to be intentional with the steps that it takes. emily: one of the big advancements is companies reporting their statistics. but when you look at them, they don't move that much every year. sometimes, they backtrack. what's it going to take to see real change? years or decades? >> i hope it's not decades. uber is a good example of a company that has been able to make progress. we have seen over 10% increase in the women in leadership. we have almost doubled the representation of underrepresented people of color. what it will take is not simply putting bandages and programs and. it's about redesigning the culture that exists within tech.

you wrote a book a few years ago about the fact that the tech industry culture is defined by this hyper-masculine culture. that is not all coming. it doesn't create belonging for women of color or people with disabilities. one of the things i think that's important that this group of companies is saying, or going to work together and truly address the underlying cultural elements that make it so hard for people like all four of us to feel like we belong. that this is our natural home in the tech industry. emily: i hope it doesn't take decades either. thank you for taking the time to share your work. thank you all.

coming up, meet meta. as we more from the apple earnings call. tim cook talking about how the supply chain crunch is impacting business. >> for this quarter, we think the primary cause of supply chain related shortages will be the chip shortage. it will affect, it is affecting pretty much most of our products currently. ♪

emily: let's get back to facebook's name change to meta.

ed ludlow with the new sign right over his shoulder. what has been the reaction? ed: it took seconds for them to reveal the new logo after mark zuckerberg made the announcement. hundreds of employees have come out to take selfies. we know they have been ramping up investment. they made this big announcement this week that they will ramp up capex to up to $34 billion next year. they are putting their money where their mouth is. what's interesting is the reaction on social media. some people believe it's not real. zuckerberg was candid about how distant this is from being a mainstream thing. at the end of the decade, it could touch a billion people

what we are only talking hundreds of millions of dollars of transactions in the metaverse. emily: $10 billion investment. how is meta going to build the metaverse? ed: the other takeaway was the hardware investment, the new generation of oculus. we all came to understand the presentation what is the metaverse? if i'm a consumer, how to why experience it? they talked about the health care and fitness aspects. if you are on a pallet on, you are seeing the people -- if you are on a peleton, you can see the people in a class with you. they stressed the case for how

we use it. it's not just gaming. business meetings, you don't have to fly to new york. this is a long way away from being real. emily: i spoke to a representative from meta earlier. we think this is going to change the conversation? ed: this idea was first reported october 19. investors have had time to digest and they've been commenting this is not sweeping around -- sweeping under the rug . the corporate structure is the same. how the business is run is the same. what is this actually change? emily: we shall see. thank you for your reporting today. that does it for this edition of

bloomberg technology. tomorrow, we will be joined by the microstrategy ceo. i'm emily chang in san francisco and this is bloomberg. ♪

haidi: good morning. shery: good evening from new york. tech shares tumble in late trading after results from apple and amazon disappoint. haidi: rebranding at