>> 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 chang in san francisco and this is "bloomberg technology." coming up in the next hour, a prime price hike. amazon raising the cost of its subscription service by 20 bucks. shares jumping about 18% in late

trade. how many users will really pay more? we discussed. plus, meta makes history, the unwelcome kind, with stocks plunging, wiping out more than 200 billion dollars of value. after facebook reports growth has stalled. we talk with alexis ohanian on the heels of his vp firm raising half $1 billion to invest in the companies of the future. all that in a moment, but first, we have to get to these massive market moves. meta-plunging, amazon soaring after earnings. ed ludlow here to walk through all the high highs and low lows, low low with facebook specifically. ed: nasdaq 100 seeing its biggest drop since september 2020. why? meta platforms, the parent company of facebook, wiping out

$250 billion in value. clearly, the equity markets turned on this. it snapped four days of gains. you see the crypto index, that basket for the most valuable tokens of bloomberg, also down in a broader risk off environment. we ask the question all day long -- is the rally in tech stocks over? at least it is on's, right? we saw the best run in gains since november 2020. another number to keep in your mind for the time being, we have to get to after hours action, and i'm laughing because what is happening? what? snap is up 55% in after-hours. it had been up as much as 58%, a really big eat on the top line. pinterest also getting in on the act. a beat on the top line in the fourth quarter.

it has given a pretty gloomy outlook for 2022, which, by the way, includes rising inflation, supply chain disruptions, ongoing semiconductor shortages, and rising supply costs. amazon after hours -- what is it doing? we are up, but a bit of a mixed picture. 80% gain in after hours -- 18% gain in after hours, but a pretty conservative outlook for the current quarter, which the street is still digesting. but the take away, price rises are amazon prime and strength in the cloud unit. emily: a lot of changing hands today. that's all i have to say. what do you make of the prime price hike and if people will really pay more? does investor reaction make sense? >> i definitely think so. they have a history of raising prime prices every four years. we are at that mark. i have heard analysts say that an additional $20 price increase

will add another $1.6 billion in revenue for amazon, and they have had tons of -- there's cost increases coming. they have also added a lot of benefits to prime, so it makes total sense. the other thing is i think half the u.s. population is a prime member and their retention rates are superhigh, so i think it all makes sense. emily: let's talk about then how they keep members coming back to prime, right? they have to keep sweetening that deal. does that mean continuing to spend billions of dollars on prime video or something else? >> they continuously add more benefits. they have definitely added lots of new streaming capabilities, new shows. they will continue to do that, but i think at the end of the day, people love the prime membership. they like how easy it is, so it is a no-brainer for a lot of

people. emily: let's talk about what is next for amazon. obviously, we have had this big leadership transition under andy jassy. we are coming out of a pandemic where there is concern -- you know, how many people are going to keep buying things on amazon? and you have stiffer competition from target and walmart and others who really shored up their e-commerce operation. >> i definitely think there is competition coming, but one of the strengths for amazon and i think one of the reasons we saw them do well is dire third-party marketplace. walmart and others are looking at increasing their third-party marketplace as well, but amazon has such a great lead in that area. there is this huge supply chain shortage this year, so it is the place where you can go to find anything you wanted. if your favorite brand was out

of stock, the third-party stepped in to fill in that cap. that is one of their greatest strengths and i think will continue to be so. willie: do you think it will have a significant impact on retention and recruiting? there has been concern about stocks languishing. equity is a huge part of retaining employees at amazon. >> absolutely. it is interesting you bring that up because there has been such a huge exodus this year at amazon, especially of executives. a lot of people say it is compensation. they place a lot of emphasis at amazon over stock, so the fact that the stock has declined so much this year has resulted in people making less money, so they are going other places. i think that is another reason amazon is probably going to have to look at better benefits and more pay for their people. i think that might be coming, too. emily: what about when it comes

to fulfillment centers? clearly, amazon has been battling an image problem, a likability problem when it comes to have a company treats employees. they definitely raised the minimum wage there, but an equity jump does not necessarily have an impact on them. >> yeah, there has been a lot of hype around that this year, but i also think amazon is committed to helping their people, and they have said that. they definitely have some work to do in that area, and i believe they will focus on doing that. emily: thanks so much for joining us. i want to get now to meta. of course, shares plunging in this epic route. huge in terms of scale, unlike anything wall street or silicon valley has ever seen and certainly facebook and meta itself. mark zuckerberg had a meeting with troops today to talk to

employees, try to give them some encouragement. what'd he had to say? >> it was really an interesting event. it appears his eyes are red, and he makes this joke about if he starts to cry, it will not be because of what he is about to talk about. he explained to employees that this is the part where they are going to have to really own video. they are going to have to figure out instagram reels. they are going to have to figure out a way to go up against tiktok. they have never faced this much competition, and there also was discussion of how to retain employees. employees ask for longer weekends, perhaps, talked about their burnout. of course, they have done really watching the stock price. some employees are considering buying the dip while others are worried about what will happen to their net worth. mark zuckerberg's has dropped

$31 billion today in a historic loss. emily: let's talk about mark zuckerberg and 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. this is why our focus on reels is so important over the long-term. emily: what is the since you are getting from employees? we were just talking about the stock knowing up, impacting retention at amazon. how does the stock going down in the middle of a big pivot to the metaverse that no one knows for sure if it will work out -- how does that impact employees at facebook? >> it is not good for morale. this is a company that has been through a lot reputational he, but the stock has always gone up. revenue has always gone up. user growth has always gone up, and now they are hitting a wall. you are an employee at facebook,

maybe you did not leave for any of the scandals or during any of the congressional hearings or privacy problems, maybe you thought, i'm still building great things and i can pay my mortgage and do what i want to do with my life -- well, if your net worth just lost a quarter of its value today, you might start to think of getting another job, and the employee shares set on february 15 and they are having their regular bonus meeting in march. do we see facebook trying new things to recruit people? obviously, they do want to recruit a ton of people. they need those people in order to usher in this new era of the metaverse, the immersive internet zuckerberg has. emily: is all the money coming out of facebook today going into snap?

>> one of the challenges is the apple privacy changes, saying companies cannot track unless users opt in. that was a big factor facebook said what -- was affecting its earnings, so people thought that would happen with snap, to, but snap had a great quarter. they had their first gaap profit ever and ushered in this new era of augmented reality advertising, and a lot of retailers are excited about it. this is a company that has done well. pinterest has also done well in this quarter, which shows that apple's problems are really mostly facebook problems. emily: we will continue to watch all of these stocks. huge, huge moves. thank you. coming up, fresh off a massive deal with microsoft, we break

down results from activision blizzard and also a former top gaming executive. what she thinks of the latest rush of m&a's. this is bloomberg. ♪

emily: nintendo is cutting its sales outlook for its highly popular switch for the second quarter in a row. the company says it expects to sell 23 million units in set of million, blaming low unexpected sales on chip shortages and shipping issues. this comes one day after sony cut 3 million from its playstation 5 sales forecast,

blaming the chip shortage and shipping costs, which they say have gotten so excessive expect higher profits despite lower ps5 sales. activision blizzard also out with results falling just short of expectations. this after just two weeks since microsoft announced that nearly $70 billion deal. i'm joined by the managing director of -- and was also the cfo of king digital, the maker of the very popular candy crush. does this deal makes sense to you? >> it does make sense. good to see you. thanks so much for having me on. when you think about january in the gaming world, you know, we started on january 10 with take-two announcing they were buying zynga. that seemed like a significant

transaction. a week later, we had microsoft coming in to by activision. and then we ended the month with somebody buying bungee. and we cannot forget about myrtle being bought by "new york times," so incredible activity in the gaming industry. what i think about microsoft buying activision, it makes a tremendous amount of sense. they are getting a tremendous asset in the activision library. they are also getting an incredible amount of engaged users. activision today talked about 370 million monthly active users . that user base loves those games and loves in gauging on a regular basis, so microsoft is also gaining that user base, which is pretty exciting, and just a talented group of employees as well, so there's a lot of good in that company.

emily: what about the cultural issues? you briefly were part of the activision family. i'm sure you have been watching the ongoing litigation and sexual-harassment concerns. can microsoft get that under concern, answered the ceo remained? >> -- can microsoft get that under control, and should the ceo remain? >> there is quite a bit of time to work through those. we know these problems do not and quickly. when i think about my time at king, that's when gamer gate came out, and that's when that big discussion about women in the gaming industry was first brought to light. it has been an issue for a long time, and it needs to be addressed. it is good to see it is getting the focus that it needs. i'm sure it will have more to go once microsoft takes over.

emily: how concerning are the supply chain issues, seeing now nintendo and sony talking about how difficult these challenges have been to navigate? >> the supply chain issues are throughout our economy, from the shortage of chips to the actual ability to get goods where they need to be. we are feeling it in all different industries. they are saying -- and i don't want to speak specifically to chips or the supply chain, but that it will take a full year for this to work through the system, so it is really impacting all of these different companies. emily: i want to talk about some of these other deals that are happening. bungee, halo, destiny -- what do you make of all of this consolidation that we are seeing? is it really good for the industry when the government and, really, society is scrutinizing the power of big tech? >> it is a challenging one to think about in that regard.

clearly there will be a lot of regulatory scrutiny around it, but the gaming industry -- there are a lot of different big gaming companies out there, so it is hard to say one has greater influence over another. there has been a lot of consolidation. i do think it makes a lot of sense when you have a franchise that is really well known and well left, having lots of different avenues to be distributed -- those fans want to access those ip's and those franchises in any way they can, so enabling that access is really exciting. when you think about bungee being bought by sony, i think that is such an exciting development. and having sony have that property -- that property has been one of the top playstation games for a long time. but also, they are ensuring that

bungee will be able to operate as it did before, so, you know, i think there is a lot of consolidation that will hopefully maintain the magic of those independent studios. emily: thank you for sharing that perspective with us. coming up my conversation with california congressman ro khanna on the heels of his new book and how congress can reign in big tech. that's next. 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 influential part of california that representative ro khanna represents in congress. he is out with a new book called "dignity in a digital age" in which he argues on moving tech power away from major cities like san francisco to create job opportunities across the country. i spoke to him and asked what he finds most troubling when you look at tech companies right now. >> i think there is insufficient concern for dignity and human agency online. what is most troubling to me is people having surveillance on everything we do, everything we think about or type in online, and then these companies getting that data. i quote a commencement speech where steve jobs says to be human, means we need some zone of privacy. that's why i worked on the internet bill of rights, so that

you would have to opt in to give your data and we could not just have companies taking this data from us. that, to me, would help preserve your dignity online. emily: we are in the midst of one of the deepest partisan divides in modern history, but tech seems to be a place where republicans and democrats are finding common ground. that said, the devil is in the details. when and where will there be consensus specifically? >> there has been consensus on the innovation competition act, the largest investment in technology since the kennedy days, and that will be distributed around the country, and we will have the chipset which will have semiconductor manufacturing. i was very proud to work with senator schumer on that and congressman mike gallagher. when it comes to privacy and antitrust, that has been harder. frankly, we have not done well enough. we ought to come to some consensus at least on basic

principles of privacy, making sure people know what is happening to their data, that companies have a fiduciary duty to treat data responsibly, so you have to opt in to consent. on antitrust, i think we are making progress, but again, i do not think you can have just a "rake up these companies" philosophy or restrictions that do not take consumer welfare into account. if we can tweak some of the language to have that balance, i think that would help as well. emily: do you feel an urgency to get something more passed ahead of midterms because democrats might lose control of the house? >> yes, i'm going to be straight -- the president's party often does not 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 if things do not go our way, so we have a one-year window to get something done because i do not think a republican house is going to do anything, and it would be

absolutely problematic if we do not pass legislation, especially as we look to 2020 for envy role that disinformation could play in disrupting our democracy. emily: california representative ro khanna talking about his new book, "dignity in a digital age." we also got into blockchain, cryptocurrency, the metaverse, and more. coming up, alexis ohanian's firm raising $500 million to plow into the companies of the future. we will talk to him about crypto, enough to's, social networks perhaps in a post-facebook era, and more. later, the ceo of the connected fitness company future and actress and investor kate hudson . 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 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 vegan. 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 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 point 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 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 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 federal agencies. 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 rules 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. ♪

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 fabletics. 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 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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