announcer: from the heart of where innovation, money and power collide -- in silicon valley and beyond, this is bloomberg technology with emily chang. emily: i'm emily emily chang in san francisco and this is bloomberg technology. spotify shares soar -- addressing that turmoil over the world's most popular podcast. bitcoin had a rough month, down

20% this january, the worst since last may. fresh off a $32 billion valuation -- why we are seeing a crypto winter -- we will discuss. and out at volt -- the young company ceo stepping down two weeks after helping to secure billions in valuation for the fintech start up. all that in a moment, but let's get to the markets and a massive rebound. ed ludlow is checking it out. ed: nothing to write home about. if you take it on a two day basis, we think about friday and monday, it's the biggest two day drop since november. you see it in the semiconductor index. experiencing a big two day leap. investors focused on the outlook for the fed and higher rates. in this risk on environment,

we've got most of the cryptocurrencies bloomberg tracks up, the biggest jump since november. let's get to after our earnings. the second biggest supplier -- up half a percent but revenue of 3.18 billion. demand is still there but inventory is very depressed. that's important in the context of the supply chain crunch. we will talk about that later in the show. m&a news -- 70 -- 70 -- sony -- what is fascinating is bungee was one of the original developers of halo. it's a much smaller deal but really interesting.

finally, let's talk about spotify -- jumping more than 13% on monday. i don't normally do this but this is a six day chart, bear with me. 13% gain on monday but we were down so much on spotify with the furor around joe rogan. they've erased the losses of last week. you don't see that very often. a little treat for you. emily: the power of a joe rogan apology. on that note, joe rogan taking to instagram to address the simmering controversy that he peddles covid misinformation. >> my pledge to you is i will do

my best to try to balance out the more controversial viewpoints with other people's perspective so we can maybe find a better point of view. i don't want to just show the contrary opinion to at the narrative is, i want to show all kinds of opinions so we can figure out what's going on and not just about covid, about health, fitness, wellness, the state of the world itself. emily: singers neil young and joni mitchell pulled their music from spotify to protest rogan who has hosted outspoken critics of vaccines. spotify also doing damage control. this is going viral indeed -- talk about what rogan had to say, whether it was enough and what spotify is doing differently now. >> you just saw the snippet of

joe rogan speaking in what was almost a 10 minute long video talking about how he is pledging to do more and have diverse voices on his platform, but spotify was waiting to put out any sort of information but they did put out a set of rules that says they are governing acceptable content but these rules had been in place prior to this joe rogan fallout. one of the steps they plan to take is adding a warning label to a podcast that discusses things like covid-19 and instead directing listeners to experts and other outlets that can verify that information. without mentioning any specific names, the ceo says it's important we don't take the position of being content sensors while also making sure there are rules in place and consequences for those who violate them. these comments alone sent company shares up 13%. something for the company but not an issue that is going to go

away anytime soon. emily: let's talk about how spotify is doubling down on the joe rogan experience. how important is a podcast like that to the platform? they've talked about how they have gotten rid of 20,000 other podcast episodes for this reason, covid misinformation but joe rogan is their star. jennifer: that's important to note -- spotify new it was getting into when it signed joe rogan just two years ago for a deal worth about $100 million. he already had a fan base, so they were exclusively getting joe rogan subscribers onto the platform. if we think about how many listeners spotify has, they have an estimated 100 72 million paying subscribers. the subscribers listening to joe rogan, almost 11 million listeners a week -- that's important for the platform. with all due respect to joni

mitchell and neil young, those two artists pulling their songs from the platform is not as meaningful as someone like joe rogan, so we are going to have to see what follows after this. had tag delete spotify was still trending as of the -- as of yesterday but we will have to see if we see more artists following suit and if it creates a bigger headache for spotify. emily: curious as to how big a headache that is going to be. i want to stick with spotify and bring in mark mahaney of evercore. what kind of topic do you think this headache is going to be for spotify? >> my guess is they handled it reasonably well. if we watch the joe rogan clip he put up and with what he posted about over the weekend and they disclosed their rules

for handling content, it seems to me they address this reasonably well had on. this doc went up a little bit -- the stock went up a little bit. you are sort of moving beyond the netflix overhang because that has been a major overhang on the stock. the confluence of events helped. i hope spotify will address this issue and it's amazing that when they went into podcasting two years ago that once you get into content, you've got moderation responsibility, so they will have to deal with this issue going forward. seems like they handled rogan reasonably well. emily: we have seen companies as big as facebook handling misinformation issues to not necessarily great effect. do you see spotify on that same scale or do you think they can manage this? this is not going to be the last of these crises. mark: i hope spotify has learned

a little bit from what facebook has done. his message on instagram -- i thought he handled himself well, allowing a thoughtful and balanced perspective on these issues. i wish more people would take that approach. whether spotify does or not is a character question. daniel x seems to be a thoughtful moderate and he has strong opinions but he's not going to let that dictate what what content gets shown or not. if it is a widely held scientific view, they should be included. it seems like a nice, moderate approach and hopefully he won't have too many of these. but if you are doing content on the internet, you are going to have some moderation responsibility, especially if you are a platform as big as spotify. emily: who do you think has the power here?

we've seen it before with taylor swift pulling out of the spotify platform. who has the power? is it spotify or the artist and tell us why that matters. mark: what i found interesting is spotify was willing when neil young said it is rogan or young, spotify made their choice. we are going to go with rogan, we hope you come back but we are also going to address your concerns. it seems like the power is with spotify now. if it was a bigger artist it might be different. but with taylor swift, there is a nice controversy and spotify stuck with its guns and was consistent and taylor swift came back. for a lot of artists, spotify is one of the best distribution channels now, especially over the last two or three years, one of the great ways for artists to make money -- digital streaming. i think at the margins, spotify

has gained more leverage over the last few years. emily: we have spotify earnings come up and we saw what happened with netflix subscribers and a lot of concern about whether they will continue to see that kind of growth quarter after quarter. do you think spotify is in a better position? mark: i think they are. if you add up all the users of netflix, there are two or three people per account. a service with 500 or 600 million users. spotify just launched in about 80 international markets in the last year and they are not as well adopted as netflix. spotify is one of my top picks here. i don't think we will have a problem with monthly average users. but you will have the same thing happen -- it's a much lower

probability in the case -- maybe three years behind and they have a premium model which means users can come from a lot of different directions. emily: always great to have you. appreciate your insights. coming up, health startup that let's patients monitor their blood at home with a simple pic of the finger. sound familiar? it's just the beginning for one health startup. we will talk about how the technology works and where they go from here. this is bloomberg. ♪

>> at the end of the day, the covid task force laid out a plan and we have a way to move america forward -- it's getting people boosted and vaccinated. the numbers show with the omicron variant, people get sick but not as sick as with the previous variants. continue to wear a mask whether there is a mask mandate or not. emily: the u.s. labor secretary, marty walsh, talking about the omicron subvariant and how it can impact plans to return to the office. it appears to spread faster than the original strain but officials say booster shots are an effective shield against it. it's perfect timing as the moderna vaccine received full fda approval. i'm joined by riley griffin who covers vaccines for us. what is significant and why did

it take so long given pfizer got full approval in august? mark: that's great -- riley: that's a great question. it's a critical commercial milestone. these emergency use authorization's can be revoked at any given time and don't have much longevity to them. they basically dissolve in the wake of or after an emergency. so that they have a stamp of approval from the fda, its product will continue to exist post-pandemic. why did it take so long? moderna lagged in submitting its materials to the f da -- fda behind pfizer. pfizer had submitted its application months earlier. we know at the time pfizer received full approval, but dharna had not finished its application. so it has taken longer for the fda to review thousands of pages

and data points to make this decision. emily: let's talk about what is coming next. as a mom, i'm waiting for a vaccine for kids under five. do we have an eight on that? i've heard reports about march. riley: we have been waiting for the data. they provided an update in december that they are going to change the clinical trial of a three dose regimen instead of two in the under five cohort. but we are hearing signals from dr. anthony fauci, from a member of pfizer's board who formally sat at the top position of the fda that they expected to come in the next month or so. one thing you might want to consider as a parent is is it going to be three dose regimen or to dose regimen? in the wake of omicron, we are

seeing it as much harder to prevent some to medic covid cases, including among children with just two doses. that is why many parents are disappointed this hasn't come sooner. emily: lots of people waiting. thank you for that update. the ongoing pandemic has accelerated a transition in health care from hospitals to the home. my next guest wants to stay a ahead of that curve. a new round of funding valued at more than a billion dollars was announced for an at-home testing company to give patients and doctors the ability to monitor chronic conditions at home. joining me is the cofounder of the company. thank you for joining us. this is an fda approved device you can use at home. explain the vision. >> thank you for having me on. the way we think about chronic

care is folks who are chronically ill naturally need more care so this cannot just be done when they are seeing a doctor or in the four walls of a hospital. this has to extend to their home. we are monitoring them from their home and if doctors are able to collect more metrics from their home, we are able to see if their condition is worsening over time and for those folks at risk, we are able to prevent the disease from escalating. emily: when people hear simple blood test, a lot of people think of fairness -- of thernos. how is athelas different? deepika: i have heard of the company. we just focus on the data. for us, that is what it was. when we started the company was when all the talk about the company were beginning, so we

took a focused approach on just clinical trials. what are the numbers, a.b. testing, and getting the fda clearance. once we got that clearance, a lot of that stuff was falling away. we are not doing a single test with a drop of blood. we focus on two tests and do them very well. emily: you got a blood diagnostic product -- what kind of future products are you considering developing and how does that fit into the bigger picture? deepika: the way we think about chronic care monitoring and remote patient monitoring is the future of health care is going to be in really smart passive sensors, in intelligent software mixing with intelligent hardware. what that can look like is

intelligence sensors in your toilet, toothbrush and sink. we want to be monitoring different biometric data and seeing how all those puzzle pieces fit into the bigger picture longitudinally. emily: i know the goal at one point was to detect the flu or other diseases. is that something you are still working on, perhaps preventing next pandemic before it happens? deepika: i don't think we will be able to do much for the covid virus itself, but in a world that at-home mandates are possible, just being remote is likely going to be the future, in that world, it's going to be key for doctors to be plugged into patient care and when it comes to chronic care monitoring or something as simple as a checkup, patients doing telehealth visits need to be

able to transfer their biometric data in a clean way. we want to help with that specific thing. emily: we will certainly be watching your progress as health care moves into it. thank you very much. coming up, more consolidation in the gaming world. sony has agreed to buy bungee. more on the $3.6 billion deal, next. this is bloomberg. ♪

emily: a few stories we continue

to watch -- the online puzzle sensation wordle has been acquired by the new york times. it was purchased for the low seven figures saying it has been incredible to watch a game bring so much joy to so many but i'd be lying if i said it wasn't a little overwhelming. sony is spending the .6 billion dollars to bolster its game making studios. that is what they will pay to bungie, they game maker behind the popular destiny franchise. it will give them one of the most popular first shear games to compete with the massive call of duty series, which microsoft owns after its purchase of activision. a former pharmaceutical executive has reached a to be a billion-dollar settlement. he and a colleague are part of

the deal, accused of trying to gouge customers. he's been serving a seven year prison term for defrauding investors. coming up, the supply chain is still bottlenecked. when does it end? we will ask ryan peterson next. this is bloomberg. ♪

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emily: welcome back to bloomberg technology. i'm emily chang. earnings season in full swing -- one topic is top of mind for investors. ed: supply chain -- if you were sick of saying it into play 21, -- in 2020, just you wait. 2022 is going to bring a lot more. strong outlook for the first quarter -- a rain -- range of 3.123.18 in revenue. the second biggest supplier for the automotive industry is

seeing strong demand below -- but low inventory level -- in other words, the car companies taking chips from them are putting them straight into products, goods ready to sell, not building up inventory. typically semiconductors are a boom and bust industry, but that does not seem to be the case. it's an interesting one to watch. the shortage still seems to be there. let's bring up this chart -- s&p 500 earnings so far, these are the topics by word count that have been most mentioned -- top of the list, supply chain. they also ask about the macro picture, circumventing some supply chain disruption and limiting the impact. now we get information from automakers, gm tomorrow and for later in the week. they did amazing in 2021, both

of them pushing their stock higher to afford reaching $100 billion for the first time. since the turn of the year, both have dropped off into negative territory. ford outperformed, but what is the semiconductor supply like and what does it do the rest of the year? emily: we're going to stick with the supply chain and talk about when we might finally see the light at the end of the tunnel. ryan peterson is the ceo of a company that helps to simple global trade. take us to the critical ports in l.a. on long beach. what is happening there right now? ryan: we are seeing longer delays than ever at the port of long beach and across the west coast. shipping from china to the united states, from anywhere in asia has reached the longest

transit time we've measured last week. it looks like things are improving, but if you go down to the port of l.a., where they used to have all of these container ships waiting off the shore, they've changed the rules to alert those ships further out to sea to avoid the pollution. which is a great rule but you can no longer use that as an indicator. the ocean timeliness indicator tracks the actual time of the goods and that's where we are seeing data that takes longer than ever. emily: so are you saying things are actually getting worse? what does that mean for the outlook for the rest of the year? ryan: it has been getting worse and worse every week. it's hard to make predictions about the future right now. a couple of big factors are making it almost impossible. the first is on july 1 of this year, the union that runs the port, the international longshoremen's warehousing union had their contract expiring on

july 1. in years past, you get slowdowns as negotiations happen and occasionally a strike. that's a big wrench that could be thrown into the machine and is very hard to predict. july 1 of 2023, the new regulations coming from the international maritime organization requires all the ships in the world to reduce carbon emissions. the only way to do that through these ships is to sail slower, so you are going to see a big slowdown starting at the beginning of next year as ships have to start sailing slower to reduce carbon emissions. emily: we have heard ceo's say over and over again that they are continuing to face supply chain. elon musk saying they continue to be chip limited but apple somehow defied the trend and tim cook said he had line of sight to thanksgiving better. take a quick listen to a long

time analysts and what he had to say about that. >> as hard as the supply chain is to navigate and apple is really doing it at the front of the damage -- supply chain improving in march -- that's a big thing for every tech investor and everyone in the food chain that contrasts some of the fears we are seeing from tesla and others, supply chain issues lasting, that is the key. emily: how is it apple isn't feeling the pain but everybody else's? ryan: remember apple is one of the best run companies in the world with the ability to speed things up and pay for airfreight and premium services and not every company has access to those resources. apples margins allow them to do that. the average small company does not have the ability of these

big companies to do things. you saw walmart chartering ships and home depot did as well -- that is not something a mom-and-pop or medium-size company can entertain. emily: you have long said tech can be part of the solution. what is it going to take? how are we going to fix it? ryan: technology has to play a key role. in the long term, we are talking about automation of these ports to improve productivity. american ports operate with a productivity that show a number of containers per hour of labor lower then mombasa, kenya. so we need to invest in automation and there's a big role in government to do that because they own the ports. shorter term, because we can't wait years and years for robots to come online, there's got to be better technology which gives people visibility and predictability of one is the cargo going to arrive and give

them options to load balance across ocean carriers and airlines, find capacity to get things moving even in a difficult market. one of my big fears for retailers as they over order. because right now, you've got hard to get semi conductors and hard to get inventory and stock and so you are ordering and ordering with long transit times. you might order to much stuff. recently my big fear is you will see more of that in the future and the longer transit time, if you don't have good visibility of when stuff is going to arrive, it could lead you to ordering more stuff to get cargo in and then you have too much inventory and that can be bad for business. emily: spacex just want to contract to work with the air force to transport military cargo around the world as well as humanitarian aid on a rocket. you seem excited about this idea.

what do you see in the role for space technology in the not too distant future? ryan: i'm a huge spacex fan and a small spacex investor. the reality is probably decades away from something commercially viable. you need launch infrastructure on the others of the world. these rockets take days and weeks to plan the launch and if there is bad weather, it can't launch. by the time that thing goes up, you could have just flown an airplane. i'm obviously area about it. emily: we appreciate you taking the time to join us even with the bleak outlook on the future. spx valued at $32 billion. we will speak with the ceo about the latest running route coming up -- funding round coming up next. this is bloomberg. ♪

emily: bitcoin is closing out a rough month with january declines the worse since last may. they spent the month in decline and other assets have suffered like ether. let's dive into our crypto report with cinelli bostick what's happening here? >> we have had a lift in prices helping us bring bitcoin even further off of its lows. looking at pitt queen at 38,005 -- at bitcoin at 38.000.

but let's put that into context. even though bitcoin had dropped way down to 33,000 this month, we are off the highs of 59,000. that means we are coming off but we are still looking at the worst month since the crypto winter. hopefully we won't go much further down from here but i want to draw us over to the private market because even though crypto prices are bringing down other assets like coinbase, we are seeing it go through increases in the private market. we have them jumping almost twice the value it was six months ago. a massive increase. emily: we are talking to and -- to the ftx ceo. this is a huge number, how are you thinking about this lu asian

and how do you justify, aside from the fact investors are willing to pay it? >> thank you for having me on. the growth that we had is what i keep coming back to. over the last few years, we've had things consistently beat the exchange across the world. our volume is up massive amounts year on year and continues to climb. that's the biggest piece and secondarily, we can operate well on multiple fronts, including the regulatory and consumer fronts. emily: why do you think the crypto bear market has not -- we heard reports about the numbers -- is that not something you are feeling from investors? sam: it is a good question. to some extent, how much confidence investors have, but

there's been a substantial public versus private divergence where at the same time we see publicly lifted equities get hit, these private venture markets have been more robust and been able to raise more funds. emily: speaking of the private market and valuation differentials, that more of a reeves on tuesday private and for more companies to sell to companies like you? sam: i did get desk. we've been evaluating whether it makes sense. looking at the relative environment, this is something that doesn't make us feel a ton of urgency. sonali: i'm wondering if you are seeing more large institutional investors seek access to cryptocurrency through companies

like yours rather than direct exposure? sam: i think that's right. even from a customer experience perspective, buying into stock whether public or private, they have to figure out how do they report them. the same sorts of things banks are going through, what it would mean for them to have any cryptocurrency on their balance sheet, more has to be on behalf of customers. emily: you have expressed interest in m&a. what are some areas that might help you compete with the likes of other deep-pocketed exchanges, whether it's finance or beyond. sam: there's a few versions of this. we've done acquisitions historically that lean toward what we might be looking at in the future.

you can look at the acquisition we are really excited about -- you can look at the acquisition from a year and which helped jump start our consumer business. those are two types of deals we are continuing to look more at and might be value additive. sonali: you raised billions of dollars in the last year and could buy something bigger if you wanted to get more financing in the future. how big are you willing to go? sam: it all depends on the context. one of our driving forces is not having an arbitrary restriction on that. it's just a question of what makes sense.

if it is the right opportunity, if the company is excited about it and if it is a good fit for our business. emily: obviously ftx has banked on sports partnerships -- tom brady is one of those partners and there's increasing talk about retirement. if tom brady retires, what does that mean for tom brady and crypto? do we see more involvement there? sam: that's a good question and i don't know anything that's not public. our football team has an opening for quarterback. that's always a possibility. emily: we will be watching for the next sports partnership with ftx and beyond. coming up, he started the company when he was a student at stamford, but now he is stepping

down. the series of controversial events that may have led to his decision fit for an episode of "silicon valley." that's next. this is bloomberg. ♪

>> we have been known for pushing the envelope on culture. we define our common culture and one thing we have found is smaller companies implementing a four-day workweek. as an executive team, we had it on our docket to discuss how it might fit into the books and we firmly believe in action and we

couldn't think of a good reason why it wouldn't work. it is kind of a no-brainer. emily: that was my conversation in a bro with the ceo of bolt on the company's decision to try out a four-day workweek. but clearly something wasn't quite working out with the company's culture as he is now out as ceo. he will become executive chair. i'm joined by katie burke. a prolific tweeter and especially over the last few days. what can you tell us? katie: good to be with you. this company has been the talk of the town lately, certainly many people in the vc community bring this company up in conversation, partly because the ceo had a lengthy twitter thread the other day and he accused stripe and combinative and the

media of having some sort of mafia, making it so others could not succeed but it was interesting because they raised $11 billion valuation but he was trying to say stripe made it difficult and that generated a lot of controversy and negative tweets, some defensive tweets but a lot of negative tweets from the vc community. emily: let's talk more about this $11 billion valuation. it seems to come out of nowhere. what is happening here? katie: that is something we have asked about. less than two years ago, they were not even a unicorn and then, they said they would raise a $4 billion valuation and then

an $11 billion valuation, so it does feel to some people in silicon valley like they came out of nowhere and have been around longer than that but they have suddenly been raising when at a time startups have been raising at high valuations in the fintech category. but there have been people who have said quietly and now publicly on twitter that they didn't feel bolt warranted the valuation. there have been to pete's of people saying -- have been saying that the value didn't match what they were seeing and they have their own interests. there's been a lot of controversy generated around other valuation and today, you have the ceo saying he has stepped down.

emily: talk to us about these valuations. valuations seem to keep going up and up. how are investors balancing this learning that they need to be more skeptical with the enthusiasm and amount of capital available? katie: the funny thing is investors in silicon valley like to -- it was mostly not institutional vcs but we work is the company that went through a rough patch and other companies have gotten a lot of scrutiny, so there is concern where on the one hand, vc's feel they need to pay the price to get access but a lot of times, they are betting on unproven businesses and

betting on people claiming they are going to do what they say they are going to do and are trusting what they are trying to do. in this very competitive environment, the due diligence are very short and people are not spending as much time looking into rounds and vetting them because if they are asking too many questions, they miss out and haven't gotten access to the round. but we are seeing people getting spooked because public tech stocks are not doing as well and people are scaling back a little bit. emily: we will continue to wait for more details from you and the story behind the story. that does it for this edition of bloomberg technology. tune in throughout the week and we will continue our coverage of tech earnings. alphabet on tuesday, met on

wednesday and more coming up, amazon and more. i'm emily chang in san francisco. this is bloomberg. ♪

yousef: this is "bloomberg daybreak: middle east." u.s. stocks and a volatile month. a peck equities on the rise this morning. those markets are closed for the lunar new year. the reserve bank of australia will discontinue its bond buying program this month. board will monitor inflation. united arab emirates