>> from the heart of where innovation, money, and power collide, this is "bloomberg technology" with emily chang. ♪ emily: welcome back to "bloomberg technology." i am emily chang. 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 in late trading. amazon projecting holiday sales that fell short of estimates , indicating a pandemic boom for e-commerce could be over. meantime, apple, iphones, and max falling short of estimates along with fourth-quarter revenue. we breakdown the results. and 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. but first, 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 company's connect conference.

take a listen. >> this is the most definitive signal yet on its ambition to focus on virtually reality and the metaverse over the next 10 years. will that distance them from the idea that they value profit over people? our ed ludlow is outside the headquarters. you saw that big sign change happened right there over your shoulder. ed:, nine second after zuckerberg went speaking, they changed it. clearly they had been thinking about that for a while. same structure. it is the biggest signal yet that facebook, or now meta, is staking its future on the metaverse. and that is one of the biggest changes, the stock ticker will be changing on december 1, all things being equal. this is not just about gaming. they unveiled this new headset

with a range of use cases like fitness and health, a big surprise for virtual health fitness, gaming, the new grand theft auto 4 virtual reality. this is big for the economy, but also big for the environment. imagine, instead of flying across the country for a meeting, you both put on the headset and meet 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: ed ludlow, thank you so much. later, we will speak with nicola mendelssohn, vice president of facebook's technology group. kriti gupta joins us. how did the markets take it? kriti: 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 woes, 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 is how much they are expected to jump in costs in 2022. for perspective, that is one quarter of facebook's annual revenue. i want to go ahead to the earnings story, because facebook is not the only mover of the day. we have apple and amazon earnings. amazon down 4.3% after hours with it, or holiday sales forecast -- with a poor holiday sales forecast. they will have to hire more holiday workers and that will cut into their profits. -- attributing it 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

pared those initial gains. also missing on revenue. what did well was there ipad revenue. do you start to see them come back up going into the holiday season? it doesn't look like regionally. china seemed to be a performer, but the rest of the world, not so much. emily: let's bring in our next guest. what is your take away? all retailers are dealing with a lot. supply chain issues. but with mac and iphone sales missing, that is kind of a big deal, right? >> i don't think it is a big deal. but apple still grew at double-digit growth. they continue to deliver double-digit growth 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. certainly, apple's target audience seems to be affluent. they are less price sensitive. they still have a lot of confidence when we are about to go to the holiday season which is one of the biggest seasons of the year. apple is doing well to bring consumers into their ecosystem to sell services. the marketing is very sophisticated. according to forrester, consumers are very concerned about the value of what they buy. so i don't think anyone is worried about apple or the expectations for this quarter. emily: tim cook on the call saying that -- despite supply constraints. does that mean you are not worried about supply constraints? they could cut production by as much as 10 million units? julie: there is certainly some

risk. the semiconductors are a risk, supply chain is a risk, the costs of labor in stores or the delivery, it is certainly a risk. we are talking about a company here that might be missing expectations, they may not sell as much as quickly, but it is still a strong company that continues to perform amazingly well, with or without a pandemic. we are still at home working. we are still at home with education, still at home streaming media, and apple is selling goods and services in other places that consumers are buying today. emily: meanwhile, sales in china almost doubled. what do you make of that? julie: i am not an expert on the chinese market. i do think apple does a better job as one company selling devices, services, whether it is media or entertainment, they do a better job of bringing consumers in the ecosystem and keeping them there.

the lifetime value of the customer is very high for them. but i think that would be one of the reasons. emily: are right, julie asked of forrester research, thank you so much for joining us and weighing in. meantime, a story we are continuing to what is activision blizzard. the ceo has asked the board to cut its compensation until the company meets its gender equity goals, making $154 million last he made -- $154 million last year. most of it in stock awards. last week activision failed to convince the court to drop the sexual harassment and discrimination case against the company. coming up -- >> if we all work added, within the next decade, the metaverse will reach one billion people, post hundreds of billions of dollars in digital commerce, and support jobs for hundreds of thousands of creators and developers. emily: mark zuckerberg is all in on metaverse.

at its connect conference, the company unveiled horizon, the oculus headset, and the biggest news being the total rebranding unveiling their brand-new name, , meta. we will talk to the global vice president about the game plan. this is bloomberg. ♪

mark: it is time for us to adopt a new company brand to encompass everything that we do, to reflect who we are and i am proud to announce that starting today, our company is now meta.

emily: there we have it. after weeks of speculation, mark zuckerberg made it official, rebranding facebook meta decoupling the corporate , identity from facebook which was mired in controversy, and putting in a shift to an emerging platform focused on virtual reality. he called the metaverse the next frontier, and on december 1, the facebook stock ticker will be changed to mdrx. to better understand the shift, we are joined by facebook's vice president, nicola mendelson. thank you for joining us. just a few hours ago you worked at a company called facebook, now it is meta. you are even changing the stock ticker. even google did not do that. given that the vast majority of the company today does not work on the metaverse at all, why take this risk? nicola: first of all, we don't

see it as a risk. meta really captures where our company is going and also the future we want to build. meta focus is all around building the metaverse, to continue letting people connect in the way they have with the facebook family of apps in the almost 20 years that we have been going. it really reflects the confusion that has been out there caused by our company sharing the same name as a single app. facebook started as one app but now we are a whole family of apps and services. meta actually brings together all these apps, all these technologies under one new, brand-new company brand. emily: give us some color on what the horizon marketplace looks like, is it going to work like an app store? will there be subscription models? how will people make money in

this new world? nicola: well first, horizon, that is the social platform that we will be building for people to create an interactive metaverse. with horizon world, that is where you can build worlds and you can jump into them with your friends, with your family, and go to places where you can go and meet together or play games in, or get to know different members of your community with different avatars that you might have. horizon home is our early vision for the home space in the metaverse. horizon workrooms, which is already running, is there for collaboration. i was in a meeting last week, and that feeling, especially in this world today where we are working in a much more hybrid way, it is very different from having a one-on-one straight into the screen like we are now. you actually feel it, if you do

turn right, if you do turn left, depending on where it was coming from, it is a different experience, an enhanced social experience. emily: what if it makes us more disconnected? more antisocial, replicating so and replicates so many of the criticisms that facebook faces today? nicola: that is not the case from the experiences that i have already been enjoying and already having. when i have been playing games, or actually when meeting and hanging out with people. i've been to the moon. with my colleagues. we took without avatars, virtual selfies against the backdrops of the moon. part of the question also is making sure -- more responsibly for the metaverse. there are a couple of things to point out that are important.

no one company alone will be building the metaverse. many different companies, many different developers and businesses will be building it together. what i think is important is we are building in the principles of safety and security right from the start. if we have these principles as a society, we will be so much better at tackling the new challenges that inevitably come along with new technologies when they arrive. emily: the facebook files have revealed the ills of social media that facebook new internally, but from the public's perspective, it appears you did not act on -- that instagram was toxic to teens, that less than 5% of hateful content was taken down. is facebook taking a longer luck in the mirror right now, or running away? or are you committing to double down and take accountability for these issues? nicola: what we're seeing right now is a coordinated effort to selectively use leaked documents

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

well-intentioned, capable people who work there, but can you moderate every single moral and political and legal issue in every country and in every language around the world, or is it impossible for anyone company to do? nicola: we have set out to be very open and transparent about the work that we are doing in this area. that is why we now publish four times a year, the community standards enforcement report. we are even opening our books to an independent auditor to be able to validate and look at our results. i think this is some of the most comprehensive, most sophisticated work that is going on anywhere around the world, and i am really proud of that work. but, to your we are not satisfied if there is anything in our platform that could anyway cause harm to anybody. we are committed to continuing to getting it down off of platform. we are absolutely committed to doing everything we can to make

those numbers as small as possible. emily: facebook's core ad business remains the engine of growth for now. we have seen twitter and snap took a hit because of the apple ad tracking changes. apple reporting its earnings result today, they actually missed estimates for fourth-quarter revenue. i am curious if you have any words for apple right now, as somebody 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 small businesses and at the expense of creators, and i think we are seeing that play out now, especially with small businesses. . they have really small budgets. but for these small budgets to work, they have to be able to reach the customers that matter to them. and especially in the last year, we have seen how vital it was for small businesses to be able to -- if they were not able to open their shops -- to be able

to reach out and find customers that matter to them. but at heart, we do believe that privacy and advertising can coexist, without the collateral damage caused by apple. emily: there have been questions about mark zuckerberg's continuing role at the company. i am curious if there is any indication that he might step back as ceo, moved into a solely chairman role like at google, and similarly for sheryl , will she take on a different role or step back if the ad's news is less important than the metaverse? nicola: nobody is saying that the ad business is less important at facebook. it is important to how we do business. i wish you could've seen the all hands that we just came out of that mark and sheryl were on, and the excitement that was emanating from all the leaders in our company, sharing the vision, x during it, having

fun with our employees, and really toasting to the next vision for the company over the decades ahead. emily: as someone who is critical in running the global ad business, i'm curious what is the ad opportunity that you see in the metaverse? do you think that targeting will be there? tell us a little bit more about your own experience and what you think advertisers will get out of it. nicola: i think there will be an exciting opportunity for advertisers. first and foremost, there will be a lot that just happens in the metaverse. there will be advertising opportunities. the way that we build these products first and foremost, is we start with people. we make sure and understand how people are using and enjoying our products, and then we go from there. i think there's going to be opportunities for creators. we will make sure we are building the tools that creators and developers need in order to

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

of the approach, the investments that we are making and the progress we have been making over the years. they recognize how the conversation has been taken out of context. they recognize why it is right for a company to do research about its own product, to understand how to constantly improve them. they understand that and i think that is an important part. they also see our commitment to the work we do with organizations like --, and on the mrc as well, and that his work that we stand by and is really important to us. emily: nicola mendelson, from meta, joining us on a late evening in london. thank you very much for joining us and sharing the new vision. we will be back with more of "bloomberg technology" after this quick break. ♪

emily: a few other stories we are watching. mark cuban's basketball team, the dallas mavericks, is having a giveaway for fans, but not the typical bobblehead or freebie. they have announced a five-year partnership and fans that sign up with the cryptocurrency trading platform get a hundred dollars in free bitcoin. microsoft is getting back into the personal computer game business. the maker of the xbox video game console has come out with "age of empires iv, the first installment of the series in 16 years, and the executive in charge said that you have to go beyond the console to speak to pc gamers as well. coming up, shopify and its six-year earnings streak comes to an end. i will speak with the company president about what he needs to

get that back. apple ceo is speaking on the and theapple ceo is speaking on the earnings call right now and . take a listen to what he had to say about apple tv plus. tim: 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 who's behind the has made that possible. ♪

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emily: welcome back to "bloomberg technology." i am emily chang in san francisco. we want to get back to tech earnings. our kriti gupta is here. take it away. kriti: after hours, facebook. they did have that name change meta. ,after hours, flat. it is really amazon and apple taken the cake. they both missed earnings estimates. amazon putting a lower-than-expected holiday

forecast, citing supply chain costs and labor shortages will affect their holiday numbers. apple missing on total revenue, iphone revenue and market revenue. only their ipad revenue was up. both those stocks are under pressure. i want to go to big tech in canada. shopify reported earnings and they actually missed their estimates. the stock ended up hiring 7% on the day, and it was all because analysts said, yes, they missed earnings, but they also have this major long-term potential. year-to-date, that has been the sentiment, because not only is shopify higher on the day, it is higher on the year, outperforming the canadian benchmark, which it is the largest member of. it is also outperforming apple, amazon, facebook, and even the s&p 500, emily. emily: far-right, kriti, thank you. i want to stick with shopify. joining us is the president. ok. it had to happen at some point. why did it happen now?

harley: i think we're sort of in this new normal, post-pandemic. i don't think there's anything average about what shopify and our margins 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. in just 16 months to double that. it was up 35% for the quarter. when you look at revenue, we hit $1.1 billion of revenue, up 46%. we are seeing more merchants coming to shopify. they are launching more and getting larger on shopify, and they are taking more of our services. what is becoming clear is that we are really building the essential internet infrastructure for commerce and we expect q4 to grow substantially faster than the retail sector overall. emily: ok. how have the supply chain issue challenges, how are they

affecting shopify and other businesses that rely on you? harley: we did not see any material impact from the supply chain. we saw inventory levels and delivery time not change much from q3 last year to this year. it seems like every single year, small businesses and the merchants that use shopify, they seem to always face new challenges, whether things like the pandemic, or the supply chain in this case. we notice that merchants are really good at being resilient. we also have a fairly diversified merchant base. many of those sourced locally and have room in their margins, or absorb some of these shocks. you have to remember that most that merchants on shopify use the direct-to-consumer model, which we think will be the mainstay of retail. they are not like big-box retailers, operating on razor-thin margins. when you combine the fact that a lot of them have a direct relationship with the consumer, they make their own products, we have not seen a major slowdown.

that being said, if the supply chain does become a long-term issue, merchants will need shopify more than ever before to find efficiencies and go direct. we saw brands like dockers and tupperware, and ftd all set up on shopify this past quarter, we're seeing them go direct in ways they haven't been in the past. emily: shopify is a huge partner of facebook, now meta. what do you think of the new name, the metaverse future, and how influential will meta be in the future of commerce? harley: facebook has been an amazing partner. to us. i actually kind of like the new name. some people are not sure, but i think is a great name. it better articulates, at least what i saw today in their developer conference, what they are planning. we believe the future of retail will be retail everywhere -- online, off-line. we announced a partnership a

week ago with spotify. artists who are also entrepreneurs can sell more easily. we have a partnership with tiktok. when facebook launched messenger, we were the launch partner for commerce and for instagram, and facebook. so if the metaverse is a place where shopping happens and commerce happens, we are really fortunate that facebook has been a great partner for us over the years and we suspect will be a great partner for meta. emily: thank you so much for joining us. i want to move to amazon now. lower in after-hours trading after giving forecasts for holiday sales that fell short of estimates. the new ceo warning that supply chain issues could cause the company several billions during the holiday season. i am joined by the cofounder and president of an e-commerce platform that helps companies like amazon with ad sales, and she used to work at amazon for many years. what is your take on this holiday quarter?

is the pandemic e-commerce boom over? >> is the e-commerce boom over? is the crazy growth of it? it might be. it was unsustainable. there was some disappointing guidance. there are so many headwinds this quarter. labor supply shortages. from warehouse workers to tech workers. the need to pay higher what wages, the global supply chain issue, other things that have happened, there was no big prime day. they pulled prime day to q2 in june. there was a high return to store shopping this quarter as well. people actually wanted to go shopping in stores. go figure. emily: is there anything that amazon can do to deal with the supply chain issues, especially during the shopping season, and how do you expect them to

weather -- obviously we have seen amazon weather many challenges, but this one in particular seems like a hard one? melissa: what amazon does so well is there market plan. they use the third-party merchants to be able to fill orders. some merchants may have issues with the supply chain, but not everybody does. they have the biggest marketplace, for these sellers can fail 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? should we start buying now for our friends and family? melissa: that is what everyone has been saying. amazon started deals on october 4. i think we will see constant deals throughout the quarter, people buying holiday gifts. that is what the industry has been saying, if you wait for the last minute, like many people do every year, you may not be able

to find that, especially in consumer electronics and toys. emily: melissa verdict, thank you for joining us. coming up, calling for more diversity intact. we will be joined by the diversity, equity and inclusivity experts from snap, spotify and others to talk 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.

about 70 of those are improvements, but we are not going to get under current plans where we need to get to which is harboring greenhouse gases by 2030. so it is great that more than 100 heads of state are coming. they need to raise their game. some have already raised it , others need to do so. ♪ emily: that was the bezos earth find president and ceo, with a dire warning ahead of the cop26 conference in glasgow. you can catch more on that interview on this edition of "bloomberg technology" tomorrow. more diversity in tech is needed. as we all know, collective action needs to happen now. this is according to the new report "action to catalyze tech" or act brought by 29 leading , equity and inclusion experts from academia and the tech industry. they call on tech companies for to commit to action to solve systemic inequality in technology which they say is an

industrywide challenge that must be tackled by working together. i went to turn to our panel. i am joined by the vice president of diversity, equity and inclusion at snap, the chief diversity and inclusion officer at uber, and the global head of diversity and inclusion at spotify. thank you so much for joining us. i have been looking forward to this conversation. i want to start with you, una, you are part of a group of companies banding together to improve diversity in the workplace. how exactly will you, at various different companies, be working together? >> essentially, what the act does is -- taking collective action. we win or lose together. in products quite often or with the tech products we create, we win or lose and her own. that is not the same. two things really strike me. i have spent two decades in dei,

five years in tact. there are two things. first, the tech industry has failed on dei. there are passionate committed clever people in the tech industry want change. so the act report lays out a roadmap for that change. it shows us how we can come together, and also acts as inspiration, so if people want to know the answer to the question that the expert group spent one year answering, how to transform dei in the industry that is applicable to all industries, they can check out the report. emily: you are competitors in the war for talent is brutal. i wonder, travis, why align yourselves, instead of trying to get all the diverse talent on your own? >> it is an opportunity for us. as a system, we can impact change. the more we come together, the more opportunity we can get to attract and recruit individuals into these amazing

opportunities. . here at spotify, we just announced our work from anywhere program where we are democratizing the access to opportunities beyond the major cities of new york, los angeles, or london. you can work from anywhere. we believe this is one opportunity that we believe that talent across the globe can get into tech. we are trying to identify ways that cross with our partners, coming together to increase not only the attraction to the tech industry, but also democratize and develop ways for us to increase access into different opportunities. so the mindset of this distributor first workplace, is for us to think about different ways of working. the only way that will be possible is if we come together as an industry to work on this problem, and that is what the act report helps us do. emily: tell us more about what your company will commit to doing specifically to boost the talent pool and open up access? >> absolutely.

at the core of this, and it is spelled out in the full recommendations in the act report, both modeling and incentivizing that inclusive talent and the leadership. we are all going to share what we are doing to incentivize. we are going to operationalize it. at uber, we have demonstrated that we have been able to look at our pay equity, which we published in our annual culture report, uber has been able to achieve pay equity in the past three years without making any major substitute changes. that is because we made changes in our hiring process, in our developing as well as our promotional process. and then sharing the data, again, it is so important for us to be transparent about where we made progress, but also where we failed. it is only in the transparency that we all learn together. finally, it is really about, and travis talked about this, it is about expanding the pool.

because right now we are trying to get our fair share of a very limited pool. they are still a lot of stereotypes that prevent us from seeing talent in other avenues. so it is just growing that full of talent. police been -- it is just growing that -- pool of talent. emily: have you talked to evan spiegel? is he committed to making dei a business imperative, and do you expect him to? >> absolutely. this came about as a result of it comment he made to me, because i was saying, hey, here's the plan. it's about how to get more inclusive workforce product culture. but i said to him, the thing is, there is no one leader, no one company can solve this. we really wanted to do it right.

he took a cross-industry approach and said this should be the future. we came to this at snap from humility. our point is we don't have all the answers. if we are to ask the questions together, that is the way we are most likely to find success and accelerate what has been an agonizingly incremental process. we have to address some of the root problems. at the moment, we just play music or chairs. at worst, we are just pursuing each other's employees. at the end, we have to expand the pool of talent by addressing educational inequities and other systemic barriers. emily: as you say, there is a huge disconnect between what executives think about their workplace, and what workers think about the workplace. research found that 75% of executives believe that women and ethnic annuities feel a sense of belonging in their

organizations. that believe is only shared by 24% of women and underrepresented minoritie employees. travis, how do you start addressing this? >> great question. research shows that even in this current state, you have to think about connectivity and community building. it has to be intentional, and you have to shift the mindset and behaviors. as mentioned, this is paramount to what this coalition of individuals are coming together to address. . the old way of doing things is no longer the way of the future. so we have to come together to think strategically about, how to reestablish community in a distributed-first workplace, but also be intentional in realizing the data shows that individuals from historically excluded communities are having a different experience? it all starts with the data, then that will help us think about strategies and solutions.

once again, if we come together, it can accelerate the diversity, it can infuse the inclusion and be able to amplify belonging in a meaningful way. the only way is to be intentional with the steps that it takes. emily: one of the big advances is companies reporting diversity statistics. sadly, when you look at those statistics, the numbers don't move that much every year. sometimes they even backtrack. bo, what is it going to take to see real change, years, or decades? >> i hope it's not decades. i hope it is years. uber is a great example of a company that actually has been able to make progress. since 2019, we have seen a 10% increase of women in leadership, we have almost doubled the representation of underrepresented people of color. what it will take is not just simply putting vantages and putting in programs, so to speak. . it is about fundamentally

redesigning the culture that exists within tech. emily, you wrote a book a few years ago talking about the fact that the tech industry culture is really defined by this very hyper masculine culture, and that is not welcoming. it does not create belonging for women, people of color, lgbtq, people with disabilities. one of the things i think that is important is this group of companies, we are saying that we will work together, find solutions 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, and i appreciate you taking the time to join us to share your work. very important work indeed. the vice president of diversity, equity, and inclusion at snap. bo young of uber, and travis robinson of spotify, thank you for taking the time. coming up, meta.

facebook changed its name after a live virtual presentation about the metaverse and how they are working on it. we will have the latest. and more from the apple earnings call. ceo tim cook has been talking about how the supply chain crunch has been affecting business. take a listen. this is bloomberg. >> for this quarter, we think that the primary cause of the supply chain-related shortages will be that ship shortage. it will affect, it is affecting, i should say, pretty much most of our products currently. ♪

efficiently get back to facebook name change. ed ludlow with the new sign right over his shoulder. [laughter] ed, what has been the reaction to mark zuckerberg big reveal? ed: it took seconds for them to reveal the new logo after zuckerberg made the announcement. hundreds of employees have come out to take selfies. you have to remember, the groundwork has been laid over several quarters, they have been ramping up their investment in facebook's labs. they made this big announcement in earnings this week that they will ramp up capex to between 29 billion dollars and $34 billion next year, almost doubling. so they are really putting their money where their mouth is. what is interesting is the reaction on social media. some people believe it is not real. but zuckerberg was pretty candid, i felt, about how distant this is from being a mainstream thing, but by the end of the decade, it could touch

one billion people. but we're only talking hundreds of millions of dollars of transactions taking place in the metaverse. emily: making the huge investment. the big question is, how is meta going to build the metaverse? ed: the other big takeaway was the hardware announcement, this new generation of oculars. for the first time during the presentation, we began to understand what is actually the metaverse. if i am a customer, how i experience it. they outlined the interesting health care and fitness scenarios. imagine doing a fitness class but instead of using a peloton you, are wearing that ocular headset, you are seeing the people in class with you virtually. you might be on the east coast, and might, be on the west coast we are wearing the same hardware. they stressed this broad use case for the hardware and the platform itself. it is not just gaming, it is how

we do business, enterprise, e-commerce. do a virtual meeting so i don't have to fly, and save the planet, cutting the carbon footprint. this is a long way from being real. emily: i spoke to meta's nicola mendelson in the show and asked if this is facebook running away from something. she said absolutely not. do we think this will change the conversation? ed: this idea was first reported on october 19, investors have had time to that just and they are commenting, let's not sweep under the rug the issues of content moderation. this is a change in name only, the corporate structure is the same, how the business is run is the same. what does this actually change? emily: we shall see. ed ludlow on the ground at menlo park, thank you for your

reporting today. that does it for this edition of "bloomberg technology." make sure you tune in tomorrow, we will be joined by microstrategy ceo michael sailor, and others. i'm emily chang in san francisco and this is bloomberg. ♪ this halloween,

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the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. ♪ >> the following is a paid presentation for a premium mattress topper, one of the fastest growing city companies in the world. >> what is captured these people's attention? >> it feels like it is for a new mattress. >> is not a new mattress greeting this.