>> 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 with shares jumping

late in trade and how many will pay more? meta makes history and the stock plunging. facebook growth has stalled. crypto and much more, we will talk about all of it more with alexis. half $1 billion to invest in the company of the future. all of that in a moment but first we have got to get the massive market moves. meta, plunging. amazon, not taking off like a rocket. >> i hope you had a strong cup of coffee. the nasdaq 100 is down 4%. facebook, wiping out $252 billion in market value.

the biggest wipeout in a single day by a u.s. company in history. snapping days of gains, risk off sentiment, the crypto index basket over the token covered in a broader risk off environment. we asked this question all day. is the rally over? at least it is on pause, right? that's the best run. another number, emily, hit it in your head and keep it in your mind for the time being. after hours for the time being, what is happening, emily? what? snap is up 55% after hours. a really big beat on the top line, users coming in better than expected. pinterest getting in on the act.

gone to miss on the bottom line with a gloomy outlook for 2022. this includes rising inflation and supply chain disruptions with commodity costs. ok, amazon after hours, what is it doing? we are up but here is the thing. a strong fourth quarter but a pretty conservative outlook for the current quarter. price rises on the cloud unit, that is it. i'm going to leave it there. i'm done. emily: melissa, what do you make of the prime price hike and will people pay more? does the investor reaction make sense? melissa: i think so. they have a history of raising prices every four years and we are at that mark and analysts

say that the additional $20 price increase will add another $1.6 billion in revenue for amazon. they have had a ton of costing creases coming. they have also added a lot of benefits to prime so yes it makes total sense at the four year mark. i think half the u.s. population is a prime member and the retention rate is superhigh. i think it all makes sense. emily: how do they keep people coming back? sweetening the deal, do they keep coming back? melissa: they keep adding more benefits. lots of new streaming capabilities, new shows, jack ryan, they will continue to do that. the prime membership, they love the fast shipping and how easy it is. it's a no-brainer for a lot of

people who are already in the business now. emily: we have had this big leadership transition coming out of pandemic where there is concern. how many people are going to keep buying things on amazon? you have got competition from target, walmart, and others. melissa: one of the reasons we saw such great results in q4 was how the party market plays. looking at increasing third-party marketplace as well. amazon had such a great lead ahead in the area. they fill in flexion gaps. there's a huge supply chain shortage this year.

filling in the inflection gap, that is one of their greatest strengths and they will continue to do it. emily: does this rise have a significant impact on retention and recruiting? the equity is a huge part of retaining employees that amazon. melissa: it's interesting that you bring that up. a lot of people say that the compensation emphasis there was moved to stock. the fact that it has increased has resulted in people making less money and they are going other places. it's another reason amazon is going to have to look at better benefits and more pay for their people. emily: what about when it comes

to the fulfillment centers? amazon has been battling a image and likability problem when it comes to how the company treats warehouse employees. they have definitely raised the minimum wage there. equity jumps don't necessarily have an impact on them. melissa: i think that amazon is committed to helping their people and they have said that and they have work to do in that area and i believe they will focus on doing that. emily: all right, melissa, thanks so much for joining us. meta, of course, shares plunging over 25% in this epic route. huge in terms of scale. unlike anything wall street or silicon valley has ever seen. sarah frier joins us now to break it all down. mark zuckerberg had a meeting

with the troops to give them some of -- encouragement. what did he have to say? sarah: it was an interesting event. he appears, his eyes are red and he makes the joke that if he starts to cry, it won't be about what he is about to talk about. turns out that he scratched his cornea and he explains that this is the part where they have to own video and figure out instagram reels and figure out a way to go up against tiktok. they have never faced this much competition and there was discussion around how to retain employees. employees asked for longer weekends, perhaps, talking about burnout. of course they have really been watching the stock price. employees are considering purchasing and what's going to happen to their net worth. mark zuckerberg dropped $31

billion today. emily: let's listen to what he had to say about tiktok. >> people have a lot of choices for how they want to spend their time. apps like tiktok are growing very quickly. that's why this is so important over the long term. emily: what is the sense you are getting? we were talking about stock going up and impacting retention, what about these reputational issues after the pivot to the metaverse that no one is sure will work out. how does that impact employees on facebook? sarah: it's not good for morale. this company has been through a lot, reputational he, but the stock has always gone up, user growth has always gone up, now they are hitting a wall. if you are an employee at

facebook, maybe you didn't leave over the scandals or the congressional hearings over privacy problems. maybe you thought hey, i'm still building great things and i can pay my mortgage and i can do what i want to do with my life. if your net worth just lost one quarter of its value, you might think about getting another job. the employee shares on the 15th, they are having their regular bonus season in march. one thing we will have to watch really is what happens, is there a brain drain at facebook? they obviously want to recruit a ton of people. they need those people to usher in the new era of the metaverse. emily: what about snap and the money coming out of facebook, is it going in? sarah: one of the big challenges

is the apple pricing changes and that was a big factor that facebook said was affecting their earnings, contributing $10 billion in damage from the apple problem. people thought that that would happen with snap, to. they had a great quarter, their first gap profit ever. really ushering in a new era of augmented reality advertising. retailers are excited about it. this company does well. pinterest has done well. it shows that the apple problems are really just may be facebook problems. emily: these stocks had huge moves as they listened into these earnings calls. sarah frier covers facebook and text for us. thank you. coming up off a massive deal, we

have hope cochran, a former top gaming exec with candy crush. what she thinks about the latest rush in m&a, next. this is bloomberg. ♪

emily: nintendo, cutting the sales outlook for the switch for the second quarter in a row. it comes one day after sony cut more than 3 million from the playstation 5 sales forecast,

blaming the sales shortage and shipping costs on where they expect higher profits despite lower sales. i want to stick with the world of gaming now. activision blizzard out with results falling short of expectations after just two weeks since microsoft announced the $70 billion deal. i'm joined now by the cfo of king digital, which was acquired in 2016 by activision. the makers of the very popular game candy crush. thanks for joining us. what's your take on the state of microsoft activision deal? does it make sense to you? >> thanks for having me on. january had take-two announcing that they were purchasing zynga. felt like a significant transaction.

$70 billion, ending the month with sony purchasing bungee. and then we cannot forget about the new york times purchasing word old. when i think about microsoft purchasing activision, it makes a tremendous amount of sense. tremendous assets in the activision library in the franchises that were built up and are getting an incredibly amount of engaged users. in these earnings reports they were up $370 million. the user base loves the games and engaging on a regular basis. microsoft, gaining that user base. a talented group of employees as well. there is a lot of good in the

company and you can see it combining nicely together. emily: you were briefly part of the activision family and i'm sure you have been watching the ongoing litigation and sexual harassment concerns. can microsoft get that under control? >> they have got a job to do in this is expected to take place through june. we know that these problems don't end quickly. when i think about my time at king, that is when gamer gate comes out. it needs to be addressed and is good to see that it is getting the focus it needs and whether it affects the under activision, i'm sure it will have more to do when taken on.

emily: how concerning either the supply chain issues with nintendo and sony talking about how difficult it has been to navigate? >> they really are throughout the economy, aren't they? from the shortage of chips to just the actual ability to get goods where they need to be. it's going to take a full year for this to work through the system. it's going to impact all of these companies. emily: halo, destiny, what do you make of this consolidation that we are seeing? is it good for the industry for the government and society is scrutinizing the power of big tech? >> it's a challenging one to

think about in that regard with so much regulatory scrutiny around it. the gaming industry is pretty disparate. there are a lot of gaming companies out there. hard to say that one has greater influence over another. there has been a lot of consolidation. when you have a franchise that is well-known and well loved with a lot of different distributions, the fans when they access the ip's and franchises in any way they can, enabling them to have the access is really exciting. when you think about bungee being purchased by sony, that is such an exciting development for both companies and having sony have that property, that property has been one of the top playstation games for a long time and it will do well under the sony name and ensure that

bungee will be able to operate as it did before. they can leverage a lot of the ways to reach consumers to in -- to find the magic of those independent studios. emily: thank you for sharing that perspective with us. coming up, my conversation with a california congress -- congressman on his new book. this is bloomberg. ♪

emily: from meta and google to twitter and apple, silicon valley is home to some of the

world's largest technology companies. and it is that part of california that representative ro khanna represents in congress and he argues for decentralization of tech power and wealth away from major cities to create job opportunities across the country. i asked him what he found most troubling when looking at the biggest companies right now. take a listen. rep. khanna: there is a concern for dignity and human agency online and what is most troubling to me is people having surveillance on everything we do . everything we think about or type in the online and then these companies getting that data. tim cook had the commencement speech at stanford where he said that to be human we had to have a zone of privacy, if place where we cannot just be manipulated with information about us. that is why i worked with tim

warner lee for an internet bill of rights and we couldn't just have companies taking the data. that would go first in preserving the online dignity. emily: we are in the midst of a deep modern divide and tech seems to be a place where republicans and democrats are finding common ground. when will there be consensus? rep. khanna: we are going to see the largest investment in technology since the kennedy days, with semi conductor manufacturing. i was proud to work with senator schumer and congressman gallagher on that. when it comes to privacy and antitrust that has been harder. we ought to come to some consensus on some basic

principles of privacy, making sure that people know what is happening to their data and that companies have a fiduciary duty to treat the data responsibly, opting in to consent. on antitrust i think we are making progress but again you cannot just break it up in restrictions that don't take consumer welfare into account if we can tweak the language. emily: do you feel an urgency to get something more passed ahead of regulation on the midterms? rep. khanna: yes, i'm going to be straight. the president's party often doesn't do well in midterms and we only have a three seat majority in the house. do i hope we win? absolutely, but we cannot take the chance of things don't go our way. we have a one-year window. i don't think that the republican house is going to do

anything and it would be absolutely problematic if we don't pass legislation as we look to 2024 and the role that disinformation could play in disrupting democracy. emily: california representative ro khanna talking about his new book. we got into blockchain, cryptocurrency, metaverse and so much more. coming up more funding for crypto startups, raising five hundred million dollars in additional funds to plow into the companies of the future. we will talk to him about crypto, nft, and social networks in a post-facebook era and more. and the future of fitness with richie mandel, as well as kate hudson, cofounder of fabletics. this is bloomberg. ♪

emily: welcome back to "bloomberg technology." i want to get back to those massive after hours market moves. ed ludlow had time to recover, i hope. ed: snap still up big in after hours. it has been up over 60% moments ago. yes, the numbers beat in terms of the user base. they sneaked a profit, net income of one cent per share. but it's interesting because it is the first ever there is a

public company, this idea that they have not returned to pre-pandemic trends. they are saying that people are not looking at their friends' stories on snapchat as they were pre-pandemic, they are looking at original content. met and facebook, facebook had problems in certain regions and shrunk rather than had flat growth. let's bring out this quote from the cofounder and ceo of snap. he said they grew sequentially in all regions, but in north america and europe they think they can squeeze out more dollars. in the rest of the world, emerging markets elsewhere, that is where they see growth. we are hung up on this massive after hours move. let's bring everyone down to earth. snap has had a rough start to 2022. when i say rough, look at this chart.

this chart takes into account the massive drop that meta had on thursday. snap really underperforming. let's see where we go on friday. let's see how the market processes this overnight and whether we have a snapback reality friday on tech stocks. emily: still just after hours moves. we will talk about this and more with our next guest, 776, alexis ohanian's venture firm, just raised $500 million for its fund. the firm now has $750 million worth of assets. alexis ohanian joins me now to talk about that and more. you could not get that extra $26 million to make it a round number? alexis: you're are giving me a hard time here. it has been a good first year. this gives us something to push for in year two. emily: where do you see the

biggest opportunities to deploy all that cash? alexis: early stage is still the bread and butter, but we are seeing huge opportunities from companies. sector-wise, i have been on the web3 train for a while. in the last two years, it has gone to another level. i have just seen too many talented builders now moving into the space. i think we will see interesting innovation to come for the next five years, in particular in this space. we are not totally focused on food tech, climate tech, but the builders are paving the way toward all things crypto these days. emily: vc's are also pouring a lot of money into crypto. i wonder, is all this money chasing the same startups?

could that lead to inflated valuations? alexis: this is why i love being one of the first round investors. i think there is a lot of dollars flowing in. but like everything in this point in the lifecycle, it is important to double down on the clear winners. what is undeniable is that this technology has proven utility. we are only seeing the earliest days of that utility of the value of ownership. i was lucky enough to be part of the generation building reddit which showed a model for the world of read and write. this web three jargon is a third component, the ownership part. we are just beginning to see that, whether gaming or nft's, to let you benefit from a sense

of ownership that has some tremendous implications down the line. i was lucky to meet with great founders on day one. you talk about some social media companies previously. it will be interesting to watch this transition. i think there has never been a better time to be a david among goliaths because the power of community and organic excitement that builts when you are part of something that feels much bigger than you, the nature of all these web3 projects, is hard to deny. emily: we are seeing massive after hours market moves. facebook today down more than 25%. snap up after hours more than 60%. what is happening here? alexis: i don't spend time on the public markets really, but it seems like people have taken into account what we have been seeing for six, nine months now,

which is the savviest marketers have been moving dollars away from facebook and diversifying to other ad products. thanks to the apple ios changes, it does not cut the mustard anymore. it is not performing in a way that makes sense. it doesn't surprise me that snap is a beneficiary. it also calls into question a revenue model like advertising that never really felt great to most of the actual people creating the content. i think this intersection of community and capital that is embodied in what web3 unlocks will be fundamental to explore. we will see new business models where the actual creators of the content have a stake in it.

their attention is more properly valued. i think that will be a big story of these next years. i think what we will find is we were not properly evaluating attention and community because the only crude tool we had was advertising. that does not do it justice. emily: speaking of another community, reddit's ipo is coming up. i am curious what your reflections are on that as we approach that big milestone and as you are seeing these big shifts, what is reddit's role going to be? alexis: i publicly left the board last year. i wish the team all the best. my focus these days is on 776. i think there is going to be no shortage of big headlines in business press over this next year and for a while to come. we are seeing such a big shift

in the role of the retail investor. it is almost the one year anniversary from when i was talking about wall street bets. i know there is a lot of skepticism from folks. the reality is there is a new generation thinking about their portfolio fundamentally differently than ever before. the 60-40 split is gone. it is not just, hey, i want to trade stocks in the bathroom on my phone, it is also a diversification of alternative assets from nft's to trading cards. the dynamic here is so different now. the retail investors, you saw a glimpse of the leverage they might have. for ceo's, speaking broadly, there is a new responsibility to not just think of yourself as a business leader, but community lead or head of state. it is something that i felt

unique explaining to people when reddit was just starting out, but i believe it is the model for new companies getting started today. especially if what you are managing has the kind of liquidity that a token has, you have to be consistently thinking about your message and, the -- your messaging, the community just as much as you are thinking about the fundamentals of the business. that is a responsibility not a lot of ceo's will be able to adapt to. emily: you recently gifted your wife serena williams a bored ape. alexis: my day job is venture investing, but i'm a bit of a nft vgen. i was excited by cryptopunks simply because it seemed like there was a historical presence there. i bought my wife a serenapunk.

i think of these as art in a way and membership into a broader community. that is not to say it is the only gift i give my wife. i do traditional things. i do believe in the long-term value of community. when i think about brand, and this is all on chain, the secondary sales of something like bored apes will be in the tens of millions this year. the money they make from you selling me an ape is meaningful money. when we start to think about the power of brand, no one bats an eye when someone looks at the market cap of nike. if they are still getting a generous revenue multiple, the business is in the business of brand. they sell atoms at the end of the day, but the value is the community and culture. there has been a president of brands built from the bottom

up using clothing and what have you. this is a new medium. it is the same nature, but it is so much more organic. yes, it is weird, but that internet culture is the dominant culture going forward. that is why i'm so excited to be deep in this space because it feels like early days reddit but it is not a niche culture of 2005, it is mainstream and global and i think it has very big implications. emily: i think you got a lot of folks listening, adding nft's to their wish list. [laughter] thank you as always for joining us. 776 general partner and founder, alexis ohanian. we will have you back when you get that extra $26 million. coming up, when is crypto regulation coming? we will hear directly from sec chair gary gensler about what is

ahead for the market in 2022. that is next. this is bloomberg. ♪

emily: after several hearings, crypto platforms and exchanges have been waiting for the government to make its move and provide more clarity on the rules of engagement. my colleague david westin spoke with sec chair gary gensler earlier. gary: we do have a broad agenda and crypto is part of that agenda, but it is an agenda to make the capital work, its markets work better for the investing public and the companies. drive more efficiency in these

markets. as to your question about crypto, the agency is just looking at more investors. many of these tokens -- i'm not trying to prejudge anyone, but many of these tokens have the attributes of securities. they are raising money from the public and the public is anticipating profits aced upon the efforts of others -- based upon the efforts of others. we are trying to work with the various crypto platforms, the exchanges, the lending platforms to come in, get registered, find where weekend to adjust our rule set to get the investor protection for the public. david: you have encouraged exchanges to get registered. at the same time a lot of them have not. gary: it's because, look, if you are a platform and you have 75

or 100 or sometimes 5000 tokens on that platform, probabilities are that many of them are what is called a security. congress painted with a broad brush. are you raising money from the public and the public is anticipating profits based on the efforts of others? my predecessor, the agency that i am honored to chair at this p oint in time, will try to pursue investor protection. if that means bringing greater enforcement actions, we will do that, but it will be better to have these platforms come under securities laws. david: do you think you have done everything you can under the statutes? do you need legislation ticket registration from those exchanges? -- to get registration from those exchanges? gary: i think the law played out

pretty clear in the 1930's. we have an ability to work with these exchanges using various authorities to basically tailor some of these. these crypto exchanges and lending platforms have operated differently than the traditional new york stock exchange. but wouldn't be helpful to work with congress on some things? -- would it be helpful to work with congress on some things? yes. unless congress says otherwise, we have to ensure there is investor protection in this space. we will work with community -- the commodity futures trading commission. while many of these are securities, some may be under their remit. we work as two federals. emily: sec chair gary gensler.

to digest it all, it is time for our crypto current segment. what do you make of his remarks and the daunting task of how to regulate crypto? >> on one hand from a wall street perspective you have existing financial firms very worried that the sec will not get a handle on the wild west that has been created out of all these crypto products. on the other hand, you have them watching closely, looking at what the sec is saying is an attribute of an existing security so that they can use enforcement actions or add on l ules to -- rules to new products that look like old financial products. how the chairman starts to mold those existing rules into this new industry will be of critical importance for how they start to create new laws. emily: in other news, i want to

talk about the $320 million stolen from a crypto project. it was restored, but in the absence of formal regulation, how is the industry trying to self-correct these issues? sonali: hacking is not something we are talking about with regulation. the wormhole project was interesting because 120,000 ether being taken. we saw crypto make customers whole once again. you saw them finally self-correcting something. it may be expensive, but it is something they are able to do themselves. emily: thank you for that update. coming up, the pandemic changed how we view fitness and working out. my next guests have a few thoughts on fitness. i speak with the cofounder of future and an investor in future about the future of the fitness landscape. that is next. this is bloomberg.

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emily: future, which connects users with trainers, raised $75 million. investors include a number of big names. joining me is the cofounder of rishi mandal, along with kate hudson, an investor in future and the cofounder of fabletic. this is a lot of cash as the fitness industry is changing coming out of the pandemic. how do you plan to plow this money into your vision for the future? rishi: what we think is about to happen is we will see in explosion of one to one coaching, of remote experts in people's lives about all sorts of topics in their health, fitness or mental health through text message therapy, or a whole variety of things, eating and sleeping.

what we have seen in the pandemic is an acceleration of technology options. emily: hey kate, are you there? we are having some problems with rishi's shot. you are an investor in future. you spent many years building your own lifestyle and wellness brand. what attracted you to this opportunity? kate: i met rishi and the team because my brother was working with them and i saw them doing instagram posts. i got more and more interested, got to know these guys, and i think they have something that is powerful and they have the ability to help people in this space. i am very focused on mission driven companies, especially,

mainly in health and wellness. they called and said, would you want to partner and do a podcast that focuses on these things as they come into this next big push? i would love to. our missions are aligned. we can really focus in on talking about things that we both believe in that are important, which is how we can support our wellness and how we support each other. the thing about future that i love is it's a coaching platform. you actually have a real relationship with a one-on-one coach. there is really no other platform that allows you to do that. it keeps you accountable. i look forward to seeing what other areas they expand into because i think we need more of that human connection through

technology. emily: rishi, you are back with us. we have seen pellet on stock heading back down help -- peloton stock heading downhill. what makes you think your vision for the future really is the future? we've got about a minute left. rishi: what is so different about future is we are agnostic to what you are doing for your fitness. you might on a sunny day be out hiking and on a different day want to hop on your peloton and do strength work. your coach every sunday builds a new training plan for the week, understanding what your travel plans on. we send you that apple watch so even if your coach is 1000 miles away, they can keep you accountable. accountability is what is new. the history of fitness is people have content or equipment or places to go, but nothing sticks. with a real human, that is what we are solving for. emily: i look forward to

continuing this conversation. thank you so much for joining us. that does it for this edition of "bloomberg technology." i'm emily chang in san francisco. join us tomorrow, we will be talking about the payroll report. this is bloomberg. ♪

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>> i'm paul allen incident -- al len in sydney. sheri: welcome to daybreak asia. our top stories, asia head chop integrating after the biggest tech slide in 2020. facebook's meta reels from a wipeout. amazon could help drive a market rebound. the economist giant -- th