>> 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." airbnb is beating its own pre-pandemic records despite omicron dragging on. we will explore travel rebound and fourth-quarter results.

plus, grubhub gets more convenient, teaming up with 7-eleven. how the collaboration fits into a broader strategy to fend off doordash and uber. an actor turned creative genius ryan reynolds gives us his take on the super bowl's crypto ad takeover. his agency is promising super bowl level ads to clients all year. let's get a look at the markets. stocks climbing and bonds falling with the dollar speculation continued about inflation and tension eased on the ukrainian border. ed is here to break it down. ed: a lot going on in the world, the market being sanguine. you see equities and outperformance in the technology sector. you see that with the nasdaq gaining 2.5%, the biggest jump in two weeks. outperforming the s&p 500. it's interesting, the u.s. 10-year yield is above 10% for the first time since july.

that did not really deter investors on tech stocks. the outperformance was semiconductors. it was up 5.5% and a big part of that is the intel tower acquisition. it is interesting. this white line is the relative performance. the blue line is the u.s. 10 year yield. it's on the up, but who cares. we are bullish today. you see the gains partly because of positivity around earnings season. speaking of earnings season, we're looking at airbnb. they are softer on activity users in the fourth quarter. the number of hours that folks are spinning on the platform is down. but the ceo has a pitch. stick with us. the metaverse is distant. but we are -- it will be a

different story. higher after hours and performing with a stay-at-home crowd, the people still working from home. this is the chart i want to bring up for the next guest. it has underperformed peers because this question around multiple stocks in the outlook, airbnb, frankly, had multiple stocks. >> and we will dig into the airbnb results a bit further. airbnb is beating its own pre-pandemic records, even as the pandemic is dragging on. what is your headline take away here? >> everyone is tired of doing zoom and sitting at home. everyone is eager to get out. they are enabling this new way of work, that nobody cares where we are, we are just doing our work. they are pushing seven days on half of their business.

these are not weekend stays. families are committing and taking their kids other places other than their home and taking advantage of this environment we are in. ultimately, you have a beat and a raise. you have great growth -- average daily night rates go higher. you continue to have a lengthening stay. it makes it easier for us to adjust to live at airbnb rather than just visit. and that is key, right? you have to have the right infrastructure. and ultimately this hybrid environment is benefiting. and it will only get better. one thing is key, they talked about the return to city. urban was a huge negative drag on their business during covid. the other thing is cross-border, right? everyone of my friends wants to go to europe this summer.

when you think about the borders opening, i went across the canadian border recently. it was great to go back to canada. i couldn't do it for two years. that's another big driver. many of the travel names are set to go higher as we clear through this turnaround. emily: what does airbnb look like when the pandemic is really in the rearview mirror? long-term stays were going up into the pandemic. the pandemic accelerated. does that plateau when life kind of stabilizes one way or another? what does that mean for airbnb? brent: it could into 2023. do employers require other employers to be back in the office? i think we will have a lot of pent-up demand for travel for a while. it's hard to find -- if you want

to go to europe, it's hard to find a spot in greece where my wife wants to go. hard to find a place right now for the summer. listen to what google said on their earnings call. they saw massive search results for travel. we are seeing this in the ecosystem and what's happening with airlines. this is pent and this will last through 2022 and into 2023. i think we will be a hybrid environment. this enables us to work our lives. we are joined via zoom. this is a different world and that world is not going to go back to the same world we are in. emily: what about the expedia story?

peter curran last week said that they are looking at their best summer ever. take a listen to what he had to say. >> i expect big cities and international travel is probably the next big win. that has been a tough part of the business. i think corporate will probably lag somewhat behind that but we do expect those places will start to fill up as more and more people get on the road. >> do you see these companies rising together or does one have an edge given that inventory is such a huge part of succeeding in the short or long-term rental business? >> we think booking will have a big year because most of the revenue is outside north america. booking is a big recovery play for us. growth in europe and asia will help them disproportionately. to answer your question, they will all do well this year. expedia does well because there's a lot of cost hangover and a lot of issues going on.

booking works for the international exposure and airbnb works for the alternative segment of the market. i think it is in this environment because there is such pent-up demand. anyone that's had covid has said ready, let's go. got my bags packed. they are ready to roll. there is enormous pent-up energy. there is little limitation to price. i think we will see a lot more ad hoc travel and you have long-range travels that you need to plan out further now. i think it's a really good year. i think the biggest risk is if we will have a hangover in 23 from all the travel we took this year. >> thank you as always for joining us. i will be speaking with the

airbnb ceo in the next hour, so stay tuned. elon musk has reported that he gave about $5.7 billion worth of tesla shares to charity back in november. the donation is one of the biggest ever, thrusting him to the top or near the top of the list of the most generous philanthropists. the name of the charity is not in the filing. a large charitable donation would help reduce what must claims would be the biggest tax bill in u.s. history. coming up, it is all about the metaverse. companies bet big on it, but can they deliver? a top metaverse investor with us, next. this is bloomberg. ♪

>> i think the metaverse is just like, what does that mean, really? >> whatever we call it, whatever it may be. >> this is very exciting. >> i think it is the next great horizon for disney. >> other digital opportunities, digital experiences to give us an opportunity to engage with consumers. >> we believe there is a world to add a third dimension of storytelling. i think that reality is inevitable. >> if you mean are we all going to be wearing vr headsets? i think -- if we are lucky enough to emerge from our caves after this pandemic, i think for the next three years to five years, people will be more excited to engage in real life than ever before. emily: the metaverse might be a

term that seems far out, but investors are hopping on the bandwagon and placing their bets now. according to bloomberg intelligence, it could balloon to $80 billion in assets by 2024. joining us now, one of the first to spot this trend. he launched an etf in the earlier days. matthew ball with us. we are seeing shares take a tumble and i'm curious just how powerful you think roadblocks will ultimately be in this metaverse. >> the interesting thing is how potent is the flywheel already today? they invested more in r&d than they had in revenue. they are spending more on the next 12 months in their own platform than three times the most expensive game in history,

grand theft auto five and red dead redemption to cost $250 million over five years to make, market, and produce. that is the potency of having 250 million active users. they have to billion billion dollars in revenue. emily: will the investment payoff? sounds like you think it will. >> it seems to be. investors look a little bit disappointed with the user and usage growth in this past quarter and we are seeing figures that disclose the largest month over month week in either of those metrics. 4.2 billion hours of usage. 55 million daily active users, the prior peak in december was 49.4 where dozens of quarters into ongoing metrics -- i don't anticipate those slowing anytime soon. emily: disney just appointed a metaverse executive, talking

about their metaverse strategy. now they have a person in charge of this strategy. which companies do you think will win here? whether it is roadblocks, disney, meta, microsoft, or companies we are not talking about yet. >> we launched the etf because we believed this was a trillion dollar opportunity. we talk about the big five tech companies today like google, apple, facebook. they were less than 15% of digital economy revenues. there will be a number of different so-called winners. amazon looks likely. we will see many unities and epic games going from a single digit billion valuation to tens if not more. >> speaking about how far ahead of the curve you were, mark

zuckerberg bought the meditech or from you. can you tell us the story of how you reach down and how much they pay up? >> they did not purchase anything from the. my company metaverse research partners produces the index which is licensed and is used for the construction of the round hill ball metaverse etf. and on top of that, i believe it was the property of the exchanges. emily: do you think meta's strategy will succeed? >> does the ibm mainframe strategy matter today? does having a pc focused strategy lead to success? the social network is not going away anytime soon. but the future of these worlds were on the cusp of that future already. facebook is losing users to

tiktok and roadblocks. and so whether or not their strategy is right or wrong, they need to focus on the metaverse. the $10 billion hit from at&t and apple's policy changes. emily: that's companies, what about the regions? do you have a region that you think could win the metaverse? korea recently launched eight metaverse etf's. i wonder what you think. >> over the last 15 years, we've seen an increasing regionalization of the internet for a mixture of regulatory purchases, the eu, and china. and increases in the local market startup community. south korea has been strong for quite some time. southeast asia. the african continent as well. as more society moves to virtual worlds, we will see more

dominant local companies. china is closing its walls more than ever. the south korean government has assigned the south korean metaverse alliance which spans 450 companies from hyundai down to their largest local banks. it seems likely that we will see increased clustering in this virtual world like we saw in silicon valley. emily: now physically in silicon valley, we have seen the regular internet having trouble dealing with challenges and misinformation, harassment. how do you see these companies dealing with challenges and virtual worlds? and can they manage this? >> i think that is the big challenge. many of the challenges we face today were unforeseeable. alexion engineering can bring the degree to which misinformation and harassment, the uploading of illicit materials and for -- horrific acts of terrorism -- we underestimated most of them.

facebook has 50,000 content moderators. i would assume if hiring another 10,000 would have solved the problem, they would've done that. i'm optimistic that the providence of the game companies that focus on happiness and fun -- we may get addicted to a social network even though we don't love losing it. but we don't play games unless we feel good. i'm hoping this crop of companies will bring a different philosophy. emily: that's an interesting take. matthew ball, thank you for stopping by. another story we are following, meantime. intel has stepped up its push to outsource chipmaking. the company has agreed to by tower semiconductor for $5.4 billion. tower is based in israel and makes power management chips, image sensors, and a variety of other semiconductors. coming up, grubhub expanding with 7-eleven. the company is trying to make up ground it is losing to rival delivery services. more on the move, next.

this is bloomberg. ♪

emily: more than 112 million people watch the l.a. rams beat the cincinnati bengals to win the super bowl. most of the viewers, more than 99 million tuned into the game on nbc. or than 11 million watched on peacock. sunday's game was the most-watched since 2015 when more than 114 million people watched the patriots hold on to beat the seahawks. that game was also on nbc. uber wants to be the company that delivers more than just food. grubhub has announced they are

collaborating with 711 to expand into convenience items beyond restaurant take out. i want to bring in jackie dava los. what is the strategy to compete with doordash and uber on this issue? this category which seems to be the next battleground. >> remember that grubhub has had convenience items almost since its inception. but what it's really trying to do is expand the footprint even further across the u.s. through this partnership. and it's doing this in a unique strategy that i think is very important to understand because of grubhub's business model that does differ quite a bit from doordash or uber. it is kind of taking this suburban area where you find a lot of these 7-11's. and looking to couple that with

these dense urban environments where grubhub got its start. they got their start in chicago and have another great hold in new york. it will create a really sticky category. doordash has smart eats. gopuff really dominates this category. rub hub is looking to chip away at the market share through this partnership. emily: how does this help their core food delivery business which is clearly being challenged by companies that are bigger and potentially have deeper pockets? jackie: this is one of the biggest challenges that have come to the surface for grubhub. they have completely lagged. doordash has gobbled up a lot of their foothold in suburban markets. what this convenience category can do is get more users onto

the platform. convenience has shown to be this kind of category that increases not just the frequency, but the spend. overall, they are hoping to get those volumes up and prove to investors that tare still a player to koneth. emily: and grubhub, there has been pressure to sell them off or spin them off. what is the status of that? jackie: adam to wit dismissed a lot of that chatter. they adjust -- address that business. there is mounting pressure from investors. doordash is getting bigger, uber is picking up. they are looking for new areas of growth in order to make that a convincing argument that they do have a future in the food delivery space. emily: what is going to be the

sticking point that defines the delivery wars over the next year? who is going to win? >> this is an interesting question and i think it's beyond my pay grade. but what investors tell me is that this cross-platform strategy is what's really going to be a lasting driver of growth. after the pandemic, the surge really wanes and starts to ease. we see people go back to their normal behaviors. we will see delivery have a place, but it's all about what times of the day can you get people? how can you increase the basket sizes and make this almost, you know, part of your life that you just cannot, you know, take away. it is pretty addictive when you can get it in 10 minutes. there's a lot of room there. emily: jackie donna los, think you for that -- jackie davalos,

thank you. we will talk about the future of fitness, the founder and executive chair of glass pass. this is bloomberg. ♪

emily: welcome back to bloomberg technology. i'm emily chang in san francisco. let's look at what the markets are doing and what's on the move as we see it. ed: this is m&a. intel buying tower for $5.4 billion. you can see tower surging 42%. what's interesting is that tower trading at $47 a share and intel has agreed to buy tower at $53 a share. it is a hell of a premium that

intel is playing with. as is about getting into the contract manufacturing space. intel wants to build semiconductors. it is a contract manufacturer and what intel will get is some of tower's clients. but it is a tiny business. a $1.3 billion business. tower semiconductor is tens of billions. in looking at pellet on, and interest -- at pellet on -- at peleton, interesting. this is after three savage days of declines. on monday night, there are some really senior folks on the supply chain, departing the company. there is a big part of the strategy to scale down and rethink the business format, but the market sharing a three-day bloodbath. on tuesday, the stock higher. it is focused on content, less on hardware and might be the way to go. emily: as we make our way

through and out of the pandemic, some companies hit harder than others like peloton. sweeping overall brought management and layoffs, including executives running operations, the supply chain, and other functions according to folks with knowledge of the situation. whereas the future of -- where is the future of fitness and connective fitness headed? the founder and executive chair of class past. thank you for joining us. i'm curious what your take is with peleton. you had to change gears with classpass in the early days. sometimes people push a product on the market rather than trying to fill a need. >> i think the founders in general always need to keep their why in place.

have to stay resilient through all of these moments. class pass was focused on bringing experiences and passions to people. peleton came in and transform the entire fitness landscape and they did it in an innovative way. and i think the key is to keep the innovation alive through these changes after customer behavior changes that we see on the other side of the pandemic. emily: what is your take on the future of fitness? at home? in the gym? running around the park? how does anyone company have that vision of the future? payal: you have to listen to your customers. they will tell you. no founder or seo -- ceo can tell you what the future will be. but we have learned through the pandemic that people have ripped

that band-aid off. we do see that a hybrid model will probably coexist in the future after working out and continuing to go to studios. emily: what is the mistake that peleton made? did they overshoot? >> it is hard to predict these things as a pandemic happens and these world changes happen. it's hard to know how long they will happen. at the end of the day, i think we want to stay here forever so i think it's probably just overshooting and overprescribing how many subscribers they will get as we start turning. it we knew there was going to be a rush. other companies sold early on in the pandemic and those were great times for the companies to sell. you really don't get hockey stick growth automatically. this was circumstantial for these companies. that happened in classpass'

growth, too. and luckily, we are getting to the other side of this, but that doesn't always mean great things for all businesses the same way the pandemic meant really terrible times for a lot of companies as well. emily: is the market oversaturated with big hardware whether it is a pellet on bike or tonal? payal: it is hard for me to say because i've been focused on in-person working out. we have dabbled in video but the heart and soul has been getting people to class. i think there are a lot of ways for people to work out. we have focused on making fitness accessible. that is the hardest thing, getting that person who doesn't know how to work out to try it for the first time. that is really what it's all about. and it can be scary. sometimes the easier you can make it, the better and bigger market share you will have. emily: some offices are offering

a classpass subscription to get their workers to come back to the office. what trends do you think we will see as the world reopens? customers have been introduced to this opportunity to work from home and work out from home. payal: none of us should be sitting at our desk working without getting out of the office. it's always been part of my life and a culture of our company as well. that is really what has been so amazing to see is how many companies are investing in their employees and their teams health. our employees being healthy means that they will be more productive and happier during their -- doing their jobs. emily: women entrepreneurs got just 2% of venture capital last year which is stunningly low despite the #metoo movement.

in silicon valley in particular. what needs to change? payal: bigger ideas from female founders. think big and we will get the bigger checks. we are seeing progress, but we need progress later on and we need more women handing out the checks at the later stages. as a founder who was able to build a company that raised her series e, we got acquired at the end of last year, and going through those changes, i realize that later on in the process, i encounter less and less women. and that was really tough for me. i would've loved to be able to share this with more women. more capital coming from women and more women thinking of these big lien dollar ideas. emily: author of life pass, a new book out now. remember how quick that peloton

ad featuring mr. big was up and running? we will talk to the team behind it and many other ads. ryan reynolds joins us next to talk about super bowl ads and more. ♪

emily: bitcoin is back on a three-day winning streak, close to the $45,000 mark. here to discuss the price move, what are we seeing? >> we really see bitcoin the last couple of days since the super bowl really start to rise back up again.

the first few days, the rise was small. the last 24 hours to 48 hours. a little bit bigger. a 4% rise in bitcoin prices alone. and even bigger job when you look at prices of a theory on which is close to a 7% rise. bitcoin volumes were higher. and for those that thought bitcoin was a diversifier, he saw them really mimic the stock market in a bigger way. risk appetite really rising as geopolitical tensions start easing. emily: i want to go back to the crypto bowl for just a moment. i talked about all that and more with mark douglas. and actor and chief creative officer ryan reynolds. i asked them what worked and what didn't work when it came to super bowl advertising. came -- take a listen. >> what worked was having an ad like no other ada. it was as direct a response as you can get.

with people watching tv on their phone, tablet, and this ad was basically like grab your phone and become part of this ad. i also don't think it's re-create a bowl. -- recreatable. if you do it again, it support imitation of the original. to combine that with a really truly direct response ad for the real -- it just tells a story, learn about crypto. i think it's pretty amazing. i don't think we see it again and i think it took a lot of courage for them to do it. and it apparently has paid off. emily: what worked, what didn't work? i certainly clicked on the qr code. within the site went down. is that success? ryan? the site going down is probably indicative of some serious success. that's called an uptown problem.

i feel like the marketing should move as fast as you do. i think the biggest obstacles to creativity are too much time into much money. character always wins out over spectacle. it is engaging and pulls people in. i thought it was fantastic. i love seeing paul rudd and seth in their piece for laces well. emily: does it hit the zeitgeist? it was so many different companies trying to get a slice of our attention. >> like we were just talking about, they cut through. they figured out everyone is curious about this topic. let's make an ad that's as direct to learning about it as we can. and it was very clever. when i watch it, it's almost

funny how simple it is. you got them laughing like, this is it? but it worked. it's their own way of cutting through the clutter and capturing the moment in the most direct way possible. i think it was brilliant and one-of-a-kind. emily: there was one thing missing -- well, a lot of things. including a celebrity. what is your take on that? is this just the next bandwagon? is there something more here? ryan: i see that as enterprise companies looking to create and carve out space in the zeitgeist. and sometimes a great way to do that is to use celebrities. sometimes a terrible way to do that is to use celebrities. i think a large part, they are doing some things pretty well. i enjoyed the lebron piece. it is definitely something new

and definitely something here to stay. emily: do you own any crypto? ryan: i don't really want to comment on that. but i do see the value in the conversation we are having right now. i think companies are doing a good job of bringing it into a safer, more mainstream light. 90% of crypto is crypt. i see why certain folks who might be put off of it or intimidated by it -- but i think it is emerging as a huge player. it has been emerging for a long time. i'm not super surprised. >> the proposition of mountain is that the super bowl should happen all year long. your pitch is that you are giving clients super bowl level attention whenever they want, whether it is a big football they are not, right? ryan: absolutely.

one of the great things about maximum effort and what we can do within mntn's we can leverage creative advertising for tv. ads are meant to be fun. and like i said earlier, the only time that that really suffers is when there is too much time into much money. there is an opportunity to overthink everything in one of the great things about mountain and cast model, the greats inscription model is that it cuts through a ton of red tape. self-service brands are able to create huge impact in a short amount of time. and i love that about what we get to do. one of the biggest tenants of the company is we've coined it as sassvertising, doing a lot more with a lot less.

so i think if -- for us, the ultimate goal always is that maximum effort and what mntn does is if you drop into a conversation, your brand becomes the conversation. and for me on the creative side of things, mark is more the software side of things -- but for me, that's everything. emily: ryan, you've brought rapid response to the ad world. that peloton ad with chris that turned so quickly right after the premier of the sex reboot, how did that happen? ryan: that is the great example of the power of cast. it gave us an opportunity to cut through all of the red tape that you would normally find, especially with the company as big as that. they are companies that have these long, drawnout ad

campaigns. we were able to do that. and there's no exaggeration when i said that. we were rolling cameras 24 hours after peloton had called mountain. they said to you have anything for us because we are in a very odd cultural moment. they killed one of their main stars on our product unbeknownst to us and we want to respond in a way that is super agile and fun. but this is the main reason i was so excited about merging with mountain. i feel like mountain is inevitable in this space. much in the same way facebook was to social and so on. and i think the rise of streaming services and the advancements in production and technology, we see it firsthand. and i think the rise of the power of social, you see this massive opportunity to transform

advertising. merging with the leading performance tv platform, that will help us on our journey in huge ways. that facilitates that relationship and is the impact we want to make in that space. and vice versa, it has been a mutually beneficial experience. emily: talk about the creative process. does it come out of your head? are you in a writers room? throwing it up on a whiteboard? how does it happen? ryan: all of the above. at maximum effort, we have a team of what i would call 25 snipers. we have more ideas than places to put them. that problem at that issue has been helped a tremendous amount by merging with mntn. we also have qwik frame which is a massively creative company and what i would characterize as an army of creative's. allowing us to deploy with

vastly different perspectives in our creative wheelhouse has been really amazing. emily: actor and mountain chief creative officer ryan reynolds along with founder and ceo arc douglas. you can catch that interview at bloomberg.com. coming up, silicon valley is not immune to the great resignation. what tech companies are doing to not just recruit but retain top talent. this is bloomberg. ♪

emily: amazon, meta, alphabet, uber. they are not as coveted places to work as they used to be. highly sought after employees are leaving en masse to work up startups focused on crypto and web three. others are burned out by high expectations. i'm going by our senior executive at her -- editor brad

stone. tech stocks are coming down whether it is amazon or meta. it is a huge way that these companies have recruited and retained top talent. is it getting harder? brad: it is. particularly retaining good employees. the best engineers have choices now. they have geographic choices. they have choices for the companies they want to work for. the stock prices have either been stagnant or down over the past year. it impacts retention, absolutely. on the recruitment side, maybe there is upside for an employee that sees the stock prices low and then you have the pr problem which will be a turnoff for a lot of employees. emily: amazon just raise the price of prime which did some good for the stock. they ever do a stock split like we saw with alphabet? could it come to that? brad: i would say, never say never. it is now pretty expensive.

over $3000 per share. he split the stock to make it more accessible -- you split the stock to make it more accessible to retail investors. you probably get fractional ownership of shares. i do think that it is something. emily: mark zuckerberg held an all hands meeting to talk about the company's values. we've also seen andy jassy at a couple of core values to the company. how does that play into this? brad: you want your companies to feel good about where they work. it's not just hr speak, these employees kind of marinate. it's how they make major decisions. it's how they hire and promote. the principals at meta and amazon are all about acknowledging critics and saying that we are conscientious companies. i do think it's important that

you try to restore the aura of good feeling. >> microsoft is calling back employees to the office on february 28. they can still work in hybrid, but that's the first company we've seen put a date on it. will other companies follow suit? and will the policy decide the next war for tech talent? >> and we are in the bloomberg office talking about this question. if the pandemic really is ending, let's keep our fingers crossed. i think there is a conviction that they move quicker. that innovation happens when people are in the office and i think microsoft is probably a little bit of a bellwether here. employees have choices. probably for the tenured employees, the high volume of engineers can maybe leverage some more flexibility. emily: something that we will be sure to watch.

bloomberg's brad stone, thank you very much. that does it for this edition of bloomberg technology. we will hear from the ceo of airbnb in just about an hour and 15 minutes from now. stay tuned to bloomberg television. arley finkelstein with us tomorrow and a great roundup of guests. this is bloomberg. ♪

>> a very good morning. i'm heidi. >> i'm shery ahn in new york. our top stories, asian stocks that arise as risk appetite improves and havens fall out of favor. treasuries and the dollar dipped. russia announces a partial pullback of troops in the u.s. invasion -- and the