taylor: how the markets performed today, it was not good. the s&p was off. the nasdaq 100 had its worst day with a really big focus on big tech. you know that facebook had the biggest wipeout of market cap in history. 10 year yields managed to climb six basis points. it could be a totally different

story and after hours. earnings crossing. 26%, facebook and meta, it seems like the companies are saying we don't have those things here. that is the market wrap, and "what'd you miss?" starts now. caroline: i'm caroline hyde and is center stage once again. meta, a historic wipeout. 250 billion dollars in market value in one day alone. the overall tech sector following the most since 2020. romaine, the catalyst. could it be for a turnaround?

amazon earnings after the bell including snap and pinterest. romaine: amazon with a higher waiting on the upside today, benefiting stocks tomorrow with a 9% growth in revenue in the most recent quarter on operating income. it was a little bit light but a lot of people are paying attention to the big increase going up to 100 and $39 per year. maybe the pricing power is a big part of the reason why you are seeing shares rising. taylor: let's bring it down with some of our esteemed guests. amazon, what really stood out to

you with these numbers? >> for me the cloud numbers were astounding. we had been calling going into the quarter that it would remain strong and we had seen enough leading indicators with cloud cents being absolutely phenomenal. caroline: moving from the business indicator to the consumer indicator in the high costs they are seeing under inflationary pressures, they can pass that onto to a strong consumer? >> absolutely. this was the big thing. the amazon prime membership increase and fell straight to the bottom line.

this kind of profit helps the bottom line more than people anticipate. romaine: amazon is of course no stranger in spending a lot of money to achieve whatever the goals are here. does it bother you at all the money that we are seeing go out the door and the costs pressure? >> that has been the playbook if you follow them for any length of time. it's like a roller coaster. we expect those kinds of investments to continue. but what is more remarkable here, talking about it earlier, the present power starting to question what types of sentiment with the consumer coming out of the pandemic. anytime you can increase your price, you're talking about $2.3

billion. dropping it straight to the bottom line, it's not the investment cycles that go remarkably well. especially with all the heavy investments we have seen, being able to kind of answer the question as to how much of the reversal of the stay-at-home trend that people have talked about. i couldn't agree more. the numbers, you have to be pleased with that now. almost like $72 billion runway business. basically 200 basis points. taylor: the shipping investments going into this company, correct me if i'm wrong, it could be

more of a logistics company lately. have those pay dividends and have they paid off now? >> i do think arguably they have been well-timed. into the delivery from a few years ago, with the competition that we are seeing in the broader retail space, they have got a lot to show in terms of investment. india and the international markets, that is what you want to see. they continue to do a lot of the heavy lifting in terms of the profitability of the total company. caroline: you focus on media and eyeballs and how much we are

addicted. the fact that amazon is a big content producer, prime video around advertising, how much can it be a different story in terms of what we have just heard from things moving towards meta? >> that's a good question, caroline. i would hesitate to call anything secular there. this time we are hearing from meta and i think that there is really no indication other than the generic issue out there. you can see that the account wins across the different industry. speaking to the diversification of the model.

even as you suspected from the business. romaine: andy jaffe has been on the job now for seven months now and we have had a chance to look at how the company performs with a nurse, do you have a general sense of how the company remains in good hands under his guidance? >> aws does drive a profit of the company to fund everything else they do. there is no reason they cannot grow it off the revenue in 2022. breaching the revenue in 2023. a great place to be from their point of view.

taylor: if that happened, wherewith the weakness be for amazon? >> in a cloud of his a bit of a share and the long-term dynamics there, they stay in place. more importantly the digital advertising market, it is an area where most of the competition can be found and i would kind of watch those numbers around what we just saw. especially in terms of the subscriber position.

seeing the impact it might have on the overall trend. caroline: great conversation with you both. we really thank you so much. what a great way to kick off this triple take. getting more into it now and what it means for the broader tech cellar with a juggernaut like amazon writing higher. this is bloomberg. this is bloomberg. ♪

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than 2700 journalists and analysts in over 100 20 countries. i'm mark crumpton and this is bloomberg. taylor: according to the nasdaq 100, a lot of the big decline during this normal trading session was meta. the company lost $252 billion in market value and yes, that is a one-day move in the biggest such decline in stock market history. you guys, this is pretty incredible when you think about the size and the scope of these numbers. caroline: then you think about the size and scope of amazon and the move after hours.

romaine: we will see how much of that market comes back or carries over into tomorrow's session. taylor: let's get some insight here with michael o'rourke. how do you deal with days like today, particularly when there is so much negative bearish sentiment in the after hours earnings that turn it all around? michael: it's one of those situations where we are becoming a market of stocks instead of a stock market. this isn't the second half of 2020 or 2021 where everything took effortless spin to take the market higher, so investors have to be more discriminating and they have to know that if they are going to hold a stock and be invested in it, they have to really like it and it is something they really want to own. one of the most important things

to recognize is that nasty as today was, the nasdaq 100 and the s&p 500 is still up 1% for the week. a nasty day but some weak all around. i am curious -- romaine: i am curious about how companies adjust to the guiding expectation. the facebook declined today seemed to partly be an outgrowth of the fact that they had talked about metaverse over the last few weeks. fundamentals and financials in a way that prepared people for what they saw. in amazon they guided folks to where they are today. is this going to become the real marker for how management does? michael: you bring up the right

points. amazon did a phenomenal job on the conference call of lowering expectations. i'm surprised amazon sold off as much as it did during the day. but obviously it is understandable with the volatility around earnings. on the flipside you have facebook that was a pretty forthright conference call saying the apple ios privacy changes were a real problem. i think the market didn't think that it would manifest so quickly or in such a way or they got focused on the whole metaverse, something that will take years to build out. clearly, the market got facebook wrong today. again, it comes down to that communication and making sure expectations are set appropriately. one of them tried to do a good

job in the other one had a whole metaverse spin that through everyone off. caroline: to that point, was it a lack of communication on their part? they didn't do a good enough job at signaling their downdrafts that they were experiencing? in europe, for example or germany, you have to pre-announce if you know that your stock is going to move in a significant fashion or if you have numbers that you think will ultimately affect your overall market capitalization? should there be more binding or do analysts need to ask harder questions to take away the starry nest they have about a few key stocks? michael: from a management perspective, you are always better off communicating with the investors in the market and getting bad news out of their earlier to tackle it and deal with it appropriately.

the whole pivot to the metaverse , we went from facebook meta during the summer or the earnings call that they would have issues with the ios settings for apple and then on a conference call for 2-3 they pivoted and said they were changing their name. it is like you went for the business model that came apart. pivoting without much traction, that probably sounds misleading. taylor: go broader with us. we are in the face of the ecb, the fed pivoting, becoming more hawkish with rising yields putting more pressure on present value in a discounted cash flow scenario. a lot of analysts pointing to that's what facebook was seeing, highlighting the advertisers that were facing the

inflationary headwinds and thinking about how they reallocate the ad budget. what does the macro backdrop look like to you? michael: the move and sovereign yield was just as important as the tech volatility in the u.s. the boe rate this morning had almost half the community looking to be the more aggressive and then you had the ecb, not making a policy move. lagarde indicating they needed to raise rates like they had in the past and we have seen interest rates rising and this inflation update on amazon earnings going up by $20. so, that is a real problem for the markets going forward with this benevolent backdrop and low inflation coming out of the pandemic and a structural shift.

it is an incredible amount of uncertainty that investors are dealing with. romaine: how does consumer and business spending hold up, michael? michael: to tell you a truth, i don't know. i don't have a crystal ball at this point. seeing this inflation continuing to be resilient here, it's a problem. oil ticked at $90 per barrel today. opec came out with their decision and said they would increase production in january. a whole set of factors out there that is hard for businesses and consumers to know how their balance sheet is going to look later this year and how they will be able to spend. taylor: appreciate the insights

in the post-market moves. thank you, michael. we will be back with our final take, next. this is bloomberg. ♪

romaine: today's triple tech was all about the tech stock and after hours we were looking at amazon and it's doing all right. caroline: up 53%? romaine: 55, now. blinken you miss it. [laughter] taylor: it really just shows, caroline, all the volatility underway and how the market positions can really move things. romaine: and tomorrow we have what, the big jobs report? we will see if that moves the

market as well. caroline: how much are we looking at the wage inflation pressures from oil? what'd you miss, that's it. technology, plenty more. this is bloomberg. ♪

>> in silicon valley and beyond, this is this is bloomberg. ♪ -- this is "bloomberg technology " with emily chang. emily: i'm emily chang in san francisco and this is "bloomberg technology." amazon, raising the costs of its central subscription service to $139 a year