>> from the heart of where innovation, power, and money collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang. taylor: this is "bloomberg technology." coming up, sales growth slowdown and high-level to partners, that is what salesforce is dealing with. we discuss why this is impacting

its sector. just shy of $3 trillion, that is where apple closed today. we break down their biggest weekly gain since july. bitcoin posting its fourth consecutive weekly decline after a brief bounds earlier this week. first, let's look at where the markets ended up closing. u.s. stocks broke a record friday after inflation data continued to spur bets that the red will not have to accelerate -- the fed not have to accelerate plans to tighten monetary policy. >> cpi, 6.8% year-over-year. although that seems like a big number, at the end of the day, we have had bigger surprises. going into this report, there was an expectation that cpi would surprise to the upside and that is where you saw stocks

breathed a sigh of relief but we also have volume lower by 12%, down from its daily average. pushing s&p 500 and apple both to all-time highs. i want to point out the 10-year yield, down one basis point. a sigh of relief in the stock market, a little bit of a bed for the bond market. -- bid for the bond market. the other data we got is average hourly earnings and weekly earnings, which is a crucial piece because as we see inflation get higher, wages are not keeping up and that is what this cluster shows on the right side of the chart, the idea that wages are declining. your paycheck is not worth as much. does that lead to strikes, unions, or better wages? i will end with our next slide which is the information technology index versus the s&p 500 because that was the leading sector today thanks to earnings

from oracle and broadcom. information technology making up almost a third of the s&p 500. taylor: really appreciate your time. of course, we continue to talk about inflation, it comes back to supply chain issues and they continue to impact through this holiday shopping season. let's do it all with ed ludlow who is at the port of los angeles. he told me he has not done his christmas shopping yet, which means you are in trouble. ed: i'm in trouble because the data tells us that the backlog is still severe, there are almost 100 ships in the san pedro bay. almost 150 boats in the pacific waiting to come into the sport and they are waiting on average three weeks. it takes three weeks to come from china to the west coast of the united states anyway so when they arrive, they are waiting an extra three weeks.

that means that inventory -- the containers are not making its way to shelves. one of the big themes of the day was technology or a lack of. what you see over my shoulder is very manual, taking containers off of the ship, putting them on a stock and the truck drives them away. it does require some cranes. it is a human process and that is where the shortfall appears to be. taylor: we have been talking about this over the last three months where it looks like there was improvement. is there, or are we just getting better at calculating the shifts that we want to -- the ships that we want to count? ed: this is good, old-fashioned economics, supply and demand. the thing that is not changing is the demand. the way that the port executive director describes it, you are trying to fit 10 lanes worth of traffic into five lanes of

space. this is what the story of the pandemic has been. at a time when we were at home, we were spending money on goods, not services. now, there is a backlog we are trying to work our way through we are e-commerce has been at the center. we are still in that key shopping period. more material is coming in, the demand is not changing. the problem is the coronavirus is still disrupting that. every time a longshoreman falls ill, a truck driver contracts covid-19, it disrupts how efficiently they can move goods. taylor: i am curious what the political conversations have been like. have things improved with the biden administration? ed: what is amazing about the port complex is it is a many tentacled beast and all of the

tentacles have a different opinion, the truck drivers, the port authority. the only thing they agree on is the biden administration has brought all of them, got them talking about data, sharing information about how we can fix the supply chain. when a truck driver arrives to the port, he gets given a ticket that tells them containers to pick up and he waits until it is ready. i think a lot of people are calling for a better system. taylor: ed ludlow, go get what is left on those holiday shopping lists. get out of here. thank you for your time. we want to talk about salesforce because they happen grappling with a growth slowdown and a wave of high-level departures. the move is raising concerns that the business will not continue to produce the gains it has generated since it bought the company for $5.6 billion in

2018. i am curious about how you think about mulesoft in the broader context of what is salesforce. >> mulesoft is the most complicated product salesforce cells but when you think about salesforce's future ambitions, is a critical part. salesforce's applications operate at -- operate isolated from one another and customers are wanting software to work with each other, they want to automate processes and to do that, you have to touch every bit of software in the process. when you think about ordering something, you could have 10 or more applications touching that. you also have to serve any collected layer to bridge those gaps and getting that automated enterprise which is not possible without mulesoft and when you look at where salesforce's vision is, that is where they

want to go and that is why mulesoft is critical. taylor: we are showing a board, explaining a little bit of the slowdown in the executive departures. why the slowdown? joe: when salesforce acquired you'll soft, they started to pick apart some of the units, specifically i.t. and recruitment and absorb it into the salesforce ecosystem. former employees say that contributed to faculty in hiring the talent needed to manage and maintain mulesoft products as well as sell them. it is a lot harder than a standalone application that salesforce is used to selling. that brain drain and the difficulty in hiring new talent has contributed or led to the difficulties that they are experiencing. taylor: there was a day when we were looking at the big tech

stocks that were the outperformers. when you look at salesforce, i'm curious how investors are reacting to it. they have to say, looking at the analysts, it is mostly positive. it is a lot of outperformers. -- outperforms. has this factored into the way analysts are thinking about it? joe: salesforce is a victim of its own success. they have been a solid growth company for so long and any weakness is going to raise red flags. analysts are split. the issue will be solved as soon as the existing quarter, others think it'll take several quarters. it is something that did raise red flags given how successful salesforce has been since its inception in creating sizable revenue growth and sales growth. taylor: thank you for breaking it down for us.

back to those public markets, the provider of stock and news photos has agreed to merge with a blank check company backed by sisi capital. the deal values getty images at $4.8 billion. coming up, apple about these post-its biggest weekly gains since july, just shy of that $3 trillion market valuation. this is bloomberg. ♪

taylor: take a look at shares of

apple, rose on friday, closing at another record. it was just shy of that $3 trillion market valuation. so fun to get you on the program. i have the excuse, i'm in the media, i like round numbers, so $3 trillion gets me excited. but you, looking at the fundamentals, does $3 trillion mean anything to you? >> i think we get there on monday. i think it is a watershed event not just for apple but for the tech sector. in terms of what we are seeing, more flows to the likes of apple, it shows us the rebating -- rerating happening in tech and i think this is a theme that tech is going to continue to be that rock with names like apple leading the way. $3 trillion is a seminal moment.

taylor: what happened this week? you had a note that annual -- that apple hinted that there would not be as much demand for the holiday season, but you came out with a note and you said you felt like that had been overdone and a lot of the reports about the slowdown were not as harsh as your checks are showing. what are you seeing? daniel: the supply chain is like doing a rubiks cube while you are blindfolded. it is difficult given the ebbs and flows. the one thing we continually see is demand is outweighing supply by roughly 15 percent. right now, that amanda story, that is what the street is focused on. you start to look into this next year, i think numbers are

conservative relative to what we are seeing and you look at services and other growth pillars and that is what drives the stock higher. and too chilling dollars, investors were screaming. now at $3 trillion -- at $2 trillion, investors were screaming. now at three chilling dollars, they are getting into an empty forest. -- at $3 trillion, they are yelling into an empty forest. taylor: there was a note from a colleague of yours saying, if anyone can do what tesla does, it might be rivian. how are you thinking about the competitive landscape of tesla, who is catching up to them, and is it rivian? daniel: when you look at rivian and you look at what is happening in ev's, i don't view it as a zero-sum game. this is going to be a $5

trillion green tidal wave. i think tesla owns $2.5 trillion but who owns the rest of the $2.5 trillion? we spent a lot of time at the factory in illinois and i think this is going to be a household name when we go into next year as they execute. today's evaluation, many investors say it is overvalued. you have to look out three or four or five years. i think rivian is a special story. taylor: we have talked about the transformation of old tech attended tech. -- old tech to new tech. transitioning to the cloud, is that a shift about how do i thinking about this "new"

company? daniel: what i would argue is probably the biggest transformation of a technology firm in the last 30 years took microsoft being the cloud later today, every investor is like, who is next? when you look at oracle and what they are doing, they are laying the seeds of growth. this was an inflection point quarter. you could have a massive rerating. you go into 2022, everyone knows microsoft. you look at what oracle has done. this is an improving quarter. there could be a clear rerating. taylor: take a look at your coverage, a lot of cybersecurity firms. i was speaking with the former founder of galleon group and he

said he cannot manage outside money after the conviction of insider trading but is managing his personal money and he is looking at crowd strike and culling at his biggest holding. how are you thinking about that cybersecurity space? daniel: cybersecurity is in its golden age right now. when you think about cloud and the threats facing enterprises and governments, it is only 5% penetrated. you look at names like crowd strike and others, i think cybersecurity is going to be the best performing subsector of tech going into the next six to nine months. i also believe in these volatile periods. when you stress test numbers, i think the street is underestimating growth. taylor: really appreciate it, always love when you can join us on a friday, giving us that

perspective that you can provide. coming up, we are going to hear from another big investor, cathie wood's. she talks about her long-term strategies and how to navigate these risk off periods. this is bloomberg. ♪

taylor: what should investors do in long risk off situations? my colleagues and i chatted with cathie wood to talk about her long-term strategy in times like these. >> this risk off period which started in february and is still enforced is an unusual one for us. i have never been in a market that has appreciated in our

strategies are down. in fact, the disconnect is more strange when i look at the up ground are taking place in the private world when it comes to innovation. new bank comes out today, i think it have an up around this year. >> do then change your strategy? if you have never seen this before but your strategy is not working, do you change your strategy? cathie: we have a five year investment time horizon, our strategy is our strategy and we believe that truth will win in the end. we think the opportunity in our strategy is huge. rarely in my career have i seen our five-year projections for returns hit 40%. we believe, based on our estimates -- we did -- they

could be wrong, we don't think so, we think we have the best research in the industry, high degree of confidence as it is centered around bytes law, based on our disciplined research, we expect an annual compound rate of return of roughly 40% over the next five years. at the peak of our strategy in february, that number was 15%. that is our minimum hurdle rate of return. when we go through a period like this, of course we are saying, are we missing something? and we double down on our research and our modeling. what we should also know is to get to that 40% rate of return, we assume massive multiple compressions from today's levels. one of the reasons our multiples are so high right now is our

companies are investing aggressively to capitalize on the five innovation platforms involving 14 technologies that we believe are going to scale exponentially. we assume that the valuations are going to compress to f aang-like valuations. >> i'm curious about the impact of higher interest rates. we have seen the growth names generally really waiver in anticipation of higher interest rates. i would love specifics from you about how you think some of your investments might be impacted. cathie: i think they already have been. i think that is what started in february once the vaccinations were hitting critical mass. we were going to get back to work, i think everyone was working hard.

back into the physical world. this assumption that the fed was going to tighten started to make its way into the market. i think that is one reason many of our stocks are down, some are down 50% to 60%. what we see happening today is the flipside -- it is a little like what happened during the coronavirus. as we entered it, there were algorithms and this market is, i think, controlled by algorithms in the short-term. what happened in the short term as we went into the coronavirus is algorithms picked up, seized on two variables. how much cash do companies have and are they burning cash? those variables took some of our stocks down to 60%, 70%. those who took the stocks down,

those people were wrong. those stocks were some of the biggest rebounders, especially in the genomic space, the genomic revolution helped us get to that vaccine and to those tests faster than would have been the case. today, what do we have? algorithms focused only on the valuations of stocks today. maybe trailing this year. so they are thinking, high interest rates, kill those stocks. we think it has taken place. by the way, i think you mentioned this earlier, interest rates after chairman powell said maybe this is not transitory inflation, the bond market rallied. i think the bond market is saying that that point of view is incorrect. taylor: that was cathie wood.

coming up, we will be joined by dominic williams to talk about his latest network upgrade and what it means for the metaverse. this is bloomberg. ♪

taylor: this is "bloomberg technology." let's get an update on the markets. how did it go? kriti: one of the big trademarks of 2020 was this idea that the nasdaq 100 and russell 2000 were trading together. it was not because people were confident in tech or an small caps but because of momentum. you see it at the two indexes move together, but lately, you have seen them diverge.

that nasdaq outperforming the likes of the small-cap index. does that relationship start to come together again? i want to move over here and look at the other tech sectors that performed today because you did see a positive tech trade at the top of the show. we talked about information technology becoming 30% of the s&p 500. here's what did not get in on that trade, the biotech index. a lot of that has to do with maternal and not getting the flu test results that they wanted. -- with moderna and not getting the flu test results that they wanted. let's take a step back and i want to close back to the november 9 peak, a 28% drawdown in bitcoin. a lot of people expected this would pick up as we talk about an inflation hedge, better cpi numbers. it is not picked up by that same momentum, now hovering between

its 100 and 200 day moving averages. is that a signed we might get some progress on over the weekend? taylor: i blame caroline. she always tells me bitcoin is the new inflation hedge so when she is out, let's blame her for everything. let's stick with crypto and bring in dominic williams, founder and ceo of affinity -- of dfinity. thank you for staying up for us. talk about this dfinity foundation. dominic: thank you for having me again. i think we last spoke in 2018. the good news is the internet computer blockchain launched this year, it is the first and only true world computer that runs hundreds of thousands of times more efficiently than traditional blockchain's --

blockchains so you can use it to build anything without use of the cloud. it has been working very well. there are more than 1000 developers who started building on the internet computer in the last six months. so far, it is stable. i think tuesday this week, aws had an outage and a lot of decentralized applications in the blockchain industry went down because they are built mainly on cloud. not a single computer on the internet computer went down because they run from the internet computer blockchain which is a world computer and he can even serve web. taylor: that outage convict the case for having something going on that blockchain but you are also talking about an upgrade. what does that achieve that we currently don't have? dominic: the internet computer

is constantly being upgraded. one of the differences between the internet computer and traditional blockchains is that it is managed and configured by a super advanced decentralized autonomous organization. it has more than $10 billion locked inside and many thousands of people participate in voting and adopting proposals which get automatically executed. these include protocols -- proposals that upgrade the protocols. as a consequence of this dao that controls the machines, it evolves rapidly. recently, there was an important upgrade that activated functionality that is important for people who want to blend

defi with their services. earlier on, you mentioned the metaverse. we are going to see the convergence of a lot of things. first of all, social media is already running on the internet computer. there is a chat called open chat. they are storing images on the blockchain. that will soon converge with defi, you're going to see things like chat accounts doubling as well let's and crypto -- as wallets and what additional things like signed documents. social media blends with defi, games do the same. both socialfi and famefi will

converge -- gamefi will converge in the metaverse. the internet computer provides an alternative i.t. stack that hosts advanced contractor software that is capable of processing value and code. taylor: i did a segment on the metaverse in mars. to think that this could get more complicated, and it does. talk to us about how you are thinking about the use case of bitcoin. we talked about the use case of that blockchain technology in the cases that you just made out i think makes sense for an average user and viewer. what about bitcoin? on the massive volatility we have seen, especially on days like today, how does bitcoin

unfold into this? dominic: crypto markets are volatile and it is still a new industry. i would not want to criticize bitcoins volatility -- bitcoin's volatility. we stay focused on the potential of the technology and working towards growth. you think socialfi and gamefi will bring in billions of users into blockchain. we touched on how the internet computer is evolving. a planned upgrade that will be proposed to the governance system coming up, which will actually integrate internet computer with bitcoin, and what is going to be interesting is per contract code, we get a second bitcoin addresses and when it moves bitcoin around, it will move on the bitcoin blockchain. in a way, bitcoin is going to

have advanced contracts, technology mounted onto it. internet computer developers are going to benefit from the liquidity that the bitcoin network brings. that is an example of how different networks can combine in unexpected way to generate new value. this space is still super early. that is why you are going to see volatility in the markets. it does not diminish the huge potential of the technology. taylor: i appreciate it. dominic williams, founder and ceo of dfinity. it is complicated stuff and you break it down so that average people can understand it. coming up, it has been a record year for investing. the numbers are far from equal. let's do it next with lindsey taylor wood's -- lindsey taylor wood. she says it is her job to make investing in women easy. this is bloomberg. ♪

taylor: we know how much the pandemic impacted women led businesses. with 2021, we have seen a little bit of a turnaround in investments in female startups. this is according to numbers by pitch book. much of the money invested in tech, health care, and retail. joining me now, lindsey taylor wood, leader of the helm. appreciate you getting on the program here. talk about what a year 2021 was,

the progress that may not be sure to parody. lindsey: we are quite a way from -- ways from parity. while there may be incremental shifts, only two point 3% of venture capital goes to female founded companies. we are on a mission to change that and make it easy to invest in women through our angel networks. taylor: where are you seeing the most opportunities? is it technology? lindsey: it is everywhere. i think it is disrupting the idea that there is a pipeline problem. we have more deals than we know what to do with. we invest in early stage companies that are tech enabled. we are looking at tech as a place to see those big returns, but we are certainly not looking at a shortage of deals across industries. women are hungry for capital and

we are finally at a point where there are more opportunities than there have been. taylor: generally, we are hearing there is a lot of cash chasing too few investments. are you hearing the opposite? lindsey: i think it is a yes and. it is an interesting time to be in venture capital. there are an abundance of deals, valuations are through the roof, things are moving quickly, and yet that insinuates that we are not facing that same types of bias that female founders have faced. i think it is a tremendous hurdle for most women to raise capital in this climate. when they do, we see higher valuations, things are moving more quickly. but by and large, one of the dangers of playing into that narrative is there is a larger

conversation happening around investing in women but i do not think we are seeing that capital match the conversation. taylor: talk to us about the conversation and how it has shifted. here at bloomberg, we talk about the labor market and a lot of women not being able to come back into the labor force because there are childcare issues, etc. how are you investing to help change that, given it is front and center in the narrative today? lindsey: i would say there are a lot of incredible companies that are looking at changing the dynamics of the care economy. we have not invested in a company focused on that yet but there are many funds doing that. that way we are approaching it is make sure that we stand by what we believe needs to be opportunities for women through our companies. ensuring that pay is equitable, ensuring that women are paid fairly, ensuring that there is

paid leave, ensuring that if you have a child or a miscarriage, you are able to take the time that you need to take care of yourself. having women at the helm of these companies is not just about the innovation itself, but about the policies, culture, products, and how their response to the lack of support we have seen thus far. taylor: we are coming off a conversation about cryptocurrencies and i'm curious about some of the female founders in the crypto world. lindsey: i have a theory that women build differently than men and i think we see that. we know that women tend to care for communities. it is not lost on us that we are entering an era where things have not worked in the favor of everyone. i think you see women and minorities enter the conversations, it makes sense that we are seeing trends around democratizing access and decentralization and those are

key to the future of crypto. i think we will continue to see things that feel more communal and more about equal opportunity and access with women and minorities part of the conversation. taylor: i am reading a quote as well. a lot of your background is in philanthropy. it says, man invested and women give their money away -- men invested and women give their money away. is that part of the conversation upbuilding that community? lindsey: it is a statement that elicits a strong reaction. historically, women have been locked out of these rooms, we have not had access to capital, we have not had agency over our own wealth, we have not had opportunities to build wealth in the same ways and that is beginning to change. as that continues, we need to think about the way the women

approach their capital. our relationship with our own capital has been around charitable giving and what we are encouraging women to do is come to the table in a different way, either as investors or as altruists. if you want to make impacts, you can do that and create a social return and in many ways, by investing in companies at the forefront of whatever the industry is that you are interested in changing, whether it be access to reproductive health or climate, you can find a company that is building toward that future so your approach becomes more proactive and not only retroactive, which is not to say that a charitable giving is not important, it is to say that it will require a more holistic response. taylor: where are you seeing investment opportunities when you think about u.s. versus the rest of the world? lindsey: i think women's health care continues to be one of the most exciting industries. we were early to it.

it has reached a fever pitch but we invested in a company which raised $100 million. they are looking to reimagine women's health care so you can go to one place to access all of your providers rather than having to go to different physicians. we invested in a company who is disrupting at home diagnostic tests, which is an early-stage test able to identify ovarian cancer in its early stages. we have invested in a number of women's health care companies and seeing them come in in droves and that is exciting and one of the places where people can look to see some benefits. taylor: lindsey taylor wood, really appreciate you joining us . following another story, that is the president of instacart leaving the company after three months.

she announced she is leaving at the end of the month and saying that it was the best decision for the company and for me personally. she previously worked at facebook. coming up, blue origin has been given a go for its flight saturday morning, it will see the first nfl hall of famer going to space. more on that next. this is bloomberg. ♪

>> we have a lot a people who have signed up to go who will help us pay the bills from developing the program. but the team are ratcheting up, building more spaceships. once they have a number of spaceships and those people who can afford to pay have gone to space, then we will start to be able to bring the price down. my grandchildren will afford to go to space even if they were not my grandchildren. taylor: a good clarification, even if you are not a grandchild of richard branson, maybe one day you will be able to afford it. that was richard branson.

his thoughts on the future cost of space travel. saturday morning, blue origin's next flight is slated for lift off. for the first time, six people will fill the seats of the new shepard including former nfl player michael strahan and the daughter of alan shepard. it will mark the first time the spacecraft is at capacity. for more, i'm joined by justin bachman. we have been speaking with you pretty much all day. we are excited about this. i'm curious about the cost of that. when do you see it becoming commercially viable for everyday people? >> i think those are two different things. commercial viability is probably going to happen much sooner than affordability for most of us. i think for that latter part, you are talking about many years. 20 30's, most likely, if not

longer. -- 2030's, most likely, if not longer. these companies are not rushing headlong into affordable tickets if the market demand is such that they can fly and some elevated prices and recoup some of the money that has been spent in building these companies. that is an important factor. they want to bring it down to a level that we could afford, but that is not going to happen anytime soon. taylor: talk to me about that competition. when do you see we get to the point where consumers may be are looking at that as a differentiating factor? justin: i think that it's going to happen in the relative near-term. if these companies are continuing to fly in following their current business models, they are going to be interested in differentiating their

products and you are going to have blue origin talk about how their vehicle is a different profile compared to what you get 300 miles away in new mexico with virgin galactic, which is where you go up with a carrier aircraft and it is dropped and then the rocket motor ignites. you are going to see a lot of that. then there is the experience and things that happen before your flight, the training, the preparation. things like the champagne and the dinners, who is serving what? that is probably what we are going to be hearing about. taylor: sounds eerily similar to commercial airlines. very interesting. thank you so much. that does it for this edition of "bloomberg technology." stay with bloomberg. david westin is up next with wall street week. this is bloomberg. ♪

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david: coming to terms with the pandemic that just won't quit with a russian threat to ukraine. this is "bloomberg wall street week." i'm david westin. a roundtable with larry summers of harvard and steve ratner. >> we put in motion for the first time in 40 years excessive inflation caused by overheating of the economy. david: rock creek on investing in the face of so much uncertainty. and bank of america on what he sees ahead in 2022. >>