>> from the heart of where innovation, money and power collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang. emily: i am emily chang in san francisco and this is "bloomberg technology." disappointing results from netflix and snap, will a slew of big tech reports be the same? we look ahead to apple, google and meta.

and in less than a week, the state of florida has stripped disney of special privileges in the state. what it means for the supposed happiest place on earth. and how ai could reshape digital ads. i will talk to the founder of muni as it works to make advertising more personalized for you. first, let's get a look at the markets and the end of a painful week for tech. ed ludlow is here. ed: friday firmly in the red, the nasdaq down 2.7%, the biggest drop since march 7. you're talking about netflix, snap earlier in the week. we have anxiety going into a crucial week for the mega cap next week. were also looking at the fed speak and the pace of hikes and how aggressive they will bp did yields a little -- how aggressive they will be. looking at yields. bitcoin caught up in the overall

risk off sentiment we have seen, below $40,000. brace yourself, emily chang because the nasdaq is at its lowest level in six weeks but it gets worse. in the month of april, tracking for the worst month since 2008. we are talking about performance in equity markets that looks like it did in the financial crisis. going into a week where the stakes are so high. you have apple and amazon reporting earnings in the same three day period. it sets us up for big questions about the fundamental outlook for the rest of the year, questions around supply chain, the consumer, inflation and growing input cost for corporate america. only three stocks on the nasdaq 100 actually rose friday, electronic parts up 3.5%. tesla was a bright spot of the week, really impressive

earnings, topline growth, bottom-line growth, basically saying supply chain, no problem. it held on until the end of friday's session but ultimately dropped 4/10 of a percent. ahead of earnings next week, big drops, alphabet at the lowest since june of next year. -- unit last year. emily: another down day for netflix as investors digested the first subscriber loss in a decade and question the future of streaming long-term. this after the plug was pulled on cnn plus less than a month after launch. is there a massive reset in streaming underway? we are joined by our guest. let's start with netflix. the focus on sign-ups, cancellations, password sharing. what about ads? could that be the future, the solution for netflix, or is it something else? >> i think it possibly can. maybe they can get another group

of subscribers who don't want to pay the full amount, the non-advertisement version. they have a couple of initiatives they really want to work on, managing password sharing and on creating this ad based platform. i think the bulk of this is because they are in western it's where they are most penetrated and at the same time they're trying to grow in international markets. which is a different economic model in some cases because they have to invest in the location and maybe have lower pricing. i think the ad model is a something that could potentially help them, but i think the bigger fear is what happened -- are we cycling the pandemic, or is there fatigue for streaming? could be both, and we have competitors in the space

pressuring netflix on the margin. emily: i wonder if we will see a rethink of how much money companies are pouring into streaming services. we just saw with cnn plus, pretty brutal, shutting it down less than a month after launch. you actually have some data about how much traction cnn plus actually got. seema: being curious about the service, wanting to try it out, and what it was and how different it might be from the free news services that might be available. the other thing to consider is there is a management change,

and the new team might be thinking about ways to use the resources and if it is worth to invest in this type of content given the competition they are facing. emily: is it something that should have been given more time, or after seeing a plummet like this a couple of weeks later, is that just a -- sign of doom? seema: i don't know if it is a sign of doom, but i think when you think of streaming, at the end of the day it is about content. if you are seeing content not as well-received as you might have anticipated, you might get a better return by shifting that investment into assets that will give you a bigger return, bigger content. it is a very competitive space, a lot of news is free. it makes sense if you think about how they are looking at how they want to use their capital, where are they going to

get the greatest return? maybe other numbers we can't see show perhaps they get a greater return investing in another project. emily: looking ahead to big tech earnings, we saw snap struggle, snap saying advertisers started pulling out at the beginning of russia's invasion of ukraine. how did that bode for meta and google, and we also have apple next week as well, and amazon, which has a huge added business. seema: advertisement in general, there are couple of things. during a pandemic, it was a perfect storm for digital advertising and marketing. now what we are seeing in april 2022, the anniversary, the cycling of the stimulus. that has a negative impact on e-commerce, obviously related to advertising. if it is slowing down, retailers are less likely to advertise. also, inflation.

on the demand side, it is slowing down, so they might be seeing an increase in costs, so a way to manage profitability might be to pull back in marketing. also the last thing, the conflict in ukraine and russia has somewhat of an impact certainly in those markets, but it might also have an additional impact in the adjacent markets as well. emily: all right, well we will be looking at the big tech results next week. seema, thank you. coming up, it is official, florida's governor has a strip to disney of its special district status in the state. what it all means next. this is bloomberg. ♪

emily: the culture wars that have so divided the u.s. have come for the most magical place on earth. florida's republican governor has signed a bill that stripped the walt disney company of its unique tax district. the special status essentially makes disney its own city, avoiding having to deal with the red tape and it wants to build or do something new at the parks. the other concern, what happens to the tax revenue disney brings into the state. last year alone, $780 million. remember, this started when disney criticized a florida law that limits teaching in schools about gender identity and sexual orientation. to break it down, i am joined by

nathan from miami, and chris, who covers disney. nathan, shocking how quickly this bill was passed. i believe bills were introduced the same day, tuesday, that the governor asked them to look into this? nathan: this happened extremely fast, tuesday i surprised the governor asked the legislature to look into the issue and that same day, bills were introduced in a special session of congress. the senate passed it on wednesday and the house on thursday and it was signed today. this happened at whirlwind speed. we have not seen this before in florida. emily: chris, what does this mean for disney and how is disney reacting? chris: it is not entirely clear, because it could be the district still exists in some form going forward. the legislature could decide to renew it in a different form next year.

in that case, the impact may be minimal. or the services might get put on sewer, fire, and things that disney had been paying for itself, could go to the county. and there would be disruption, sure, but probably nothing catastrophic. the company has been very quiet about this subject, not issuing any public statements whatsoever, which is unusual. emily: nathan, what are the tax implications? governor desantis is saying disney will pay more taxes but there are concerns some of the debt might fall on taxpayers. can you unwind that? nathan: i don't think anybody knows too many specifics yet, but there are questions, bondholders want to know who will be responsible for paying back debt, property owners want to know if taxes will increase. this is a huge district and involves a lot of municipal services.

the district had paid for i think the local sheriff in orange county. there are so many issues that need to be worked out, and it comes down to who will pay for what. there are more questions right now that a lot of different people will be paying attention to this going forward. emily: chris, obviously disney has been in florida for decades. could it come to them leaving the state, moving the parks out of the state? chris: i can't see that happening. it is such a big business, four theme parks, 29,000 hotel rooms. a big part of the profit comes from florida. i don't see that happening. but disney has got to figure out some way to mitigate this war it has going on with ron desantis. i think they learned last month when they first spoke up about the schools bill, there's almost nothing they can say without angering one side or the other.

which is why they have been quite recently, but they've got to work to get this past so they can continue to enjoy the money they make in florida. emily: on top of this, it is no secret, governor desantis probably wants to run for president in a couple of years, nathan. could we see him taking similar actions against other businesses? nathan: everyone is going to be watching that. this is happening in a context where in florida, we've seen a number of what they call culture war issues, to abortion restrictions, the bill on parental education rights in schools, the complication with disney. these issues have been popular with the desantis base voters in florida and the rest of the country. this is definitely generating a lot of attention and people are watching desantis both in florida, but from a national perspective as well.

emily: chris, of course bob che peck, the ceo of disney initially said disney was not going to push back on the law, about instruction on gender identity in schools, and there was huge pushback from employees across the company. he did a 180, he came out against this law. how is he faring internally at this point? he said he was going to go on a listening tour, he apologized, and now of course, back in florida, it is continuing to explode on the other end. chris: he's faring as well internally as externally, which is not great. he is in a difficult position. no matter what the country -- the company says, half the nation will be mad at it. he has tried to go the course he things is best for his employees, many of his workers

support these issues on gay rights. he has chosen that course. this will continually put him in the crosshairs of conservatives that want to make this a big issue not just this year but for a long time here emily: meantime, disney earnings are coming up and the last report was not great. on the heels of what we saw from netflix, the first subscriber loss in a decade, what are you expecting from disney? chris: that will be the ultimate judge, how they do financially. right now we are not anticipating any huge surprises in terms of subscriber declines for disney plus like netflix. all indications are the theme parks are doing quite well, including in florida. long lines everywhere. they could still have another strong quarter. emily: nathan, what is next?

how do you expect this to ultimately play out? nathan: we will have a lot to keep attention on for the next year. this measure signed by desantis still gives officials over a year to figure out what to do, and as was mentioned before, it is possible an agreement could be reached. disney will have to maneuver a tricky situation. it is not just what disney is going to do. a lot of people in florida are paying close attention to this. i've had friends in orlando write me worried there taxes will go up. this will affect a lot of different people, and has a political nature to it as well. we saw how fast this came up, and it could all change may be just as fast. it is something we will be watching. emily: all right, nathan and chris, thank you both for your insights. we will continue to follow the story. coming up, we stick with the disney, but this time we spend some time with wall-e.

how that beloved character has best predicted the future. that is next. this is bloomberg. ♪

emily: take yourself back to 2008, when the world was first introduced to wall-e, the trash clearing robot from pixar. now it seems like life or tech is certainly imitating art. alex webb talked to the director. alex: science fiction has been trying to predict the future since ancient times. but one film has seemed to uncannily predict the future. it is the animated story of a trash clearing robot, "wall-e."

>> i usually enjoy being right, but not in this instance. alex: that is the writer and director. on the surface, it is a tale of two rocots falling in love, but it is really about consumption. >> the funny thing is, where do you think tech knowledge he will go and why? what ended up being our way to guess that is what would seduce you? we were watching it happen with the phone and use electric scooters. it is like fast food, you know it is best for you but it is seductively tasty in u.k.'s. -- tasty and you cave. i know this probably isn't great for my eyesight to be staring at a screen, but i need to click one more headline. it is a seduction that ended up being the gateway into things

sticking into the culture. alex: the film depicts a future where the earth is inhospitable to life. the inter--- climate change events now happen almost three years and drought is twice as common. the human characters live a sedentary existence on a spaceship, floating around. u.s. adults spend more than 11 hours a day in front of a screen. the humans in wall-e eat from a cup. we are seeing smoothies.

it's an almost $12 billion market. then there are the satellite speed the rocketship in the film has to break through a crust of them to escape earth's orbit. when it was released, there were only a few hundred satellites around the earth and now they are 8000 and plans to add tens of thousands more. astronomers are already complaining about the declining ability to see the night sky. sounds more than a little bit like amazon, whose sales have jumped to a projected $540 billion this year. in hoover's up about 40% of the u.s. e-commerce. and its founder has a space expiration company. amazon was the inspiration for "wall-e." >> we were early adopters and we were getting boxes sometimes

daily. that is the norm now but at the time i thought where is all of this trash going? alex: pixar's location in silicon valley may have helped to glean insight, but it also had an advantage. steve jobs. >> he was with us 10 years for half a week every week. we saw the iphone before other people did and i remember picking it up and using it, thinking it was magic like everybody else did. i was also going, why is this feeling so familiar? i realized this is what it is like when i used to smoke, i used to smoke to fill the time. if i was waiting on a corner for a bus, you weren't feeling awkward if you lit a cigarette and kept it going, and i thought, there is an addictive quality to this, just to occupy my time that is very instinctual. again, it wasn't a huge leap for me to go i can see this quickly

becoming a crutch. alex: of course, there is plenty in the film that hasn't come to pass. we are still living on earth and it is far more likely that climate change since much more of the world into poverty than life hasn't uncanny way of imitating art. the ship in wall-e is called axiom. a crew was recently taken to the international space station, and the name? emily: alex webb reporting. and remember today is earth day. coming up, she is using ai to change the digital ad space. find out how. the cofounder and ceo of muni joins us next. -- mutiny joins us next. this is bloomberg. ♪

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emily: welcome back to bloomberg technology. ed ludlow is back with details. what are we looking for? >> we go into this monster week with a lot of anxiety. look at apple, microsoft, parent companies, significant decline. look at what is on deck the next week. it is the mega caps.

we have apple and amazon on the same day april 28. the chipmakers, qualcomm on the 27th. we are still thinking about how people are looking at gaming. activision blizzard kicking off the week. the story has not been good in 2022 for mega cap stocks. we started the year with valuations at near record highs. we have a lot of the pace of rate hikes federal reserve. the orange line you see at the top the s&p 500 is down to date. we're trailing in a number of these mega cap tech stocks.

what will they have to do around earnings? what confidence do they have to display around the supply chain to help us out with this? the s&p 500 down 10%. the nasdaq down 18% to. next week is a big week. emily: thank you. with valuations as high as they are, many companies are starting to rethink their advertising dollars. that's in the private and public rockets. most retailers and up losing money on advertising especially online. this is a problem my next guest is trying to solve. his platform leverages marketing spend into revenue. joining me is the cofounder. thank you for joining us.

tell us about how mutiny works. what you're doing is improving websites, giving businesses a tool to improve their websites more easily and help turn that into dollars. >> absolutely. if you think about the evolution of marketing, phase one was all about the madman era. tv offline advertising. it phase two with the internet, moved into the majority of the spend. the challenge that everyone has as you mentioned is 19 out of every $20 the companies spend on the platforms is essentially being set on fire. [laughter] the reason is physically, the buyer will see an ad and them will be taken to a website that is generic that they don't understand and they end up not converting. now with the availability of data and ai, we are moving into phase three. the focus is all about

how do we take the money we are giving to facebook and google's of the world and turn that into revenue for the company? that is the problem that unique solve. -- mutiny solved. we plug into the website then we create ai to create thousands of versions of their website for different buyers. emily: how do you choose the right one? >> there's a lot of technology that goes into it. one thing that has made me successful, it was inspired by my own experience. we had the same waste problem and we decided to build a big engineering problem to solve it. that is what all of the big tech companies, uber and airbnb are doing. hiring hundreds of engineers and data scientists to solve this problem. after doing it ourselves, we realized that every company needs this. but that in order for them to do

this, it's virtually impossible to hire all of the engineers. we built mutiny which is an engineering team in a box that a company can employ to drive these conversions. emily: you say if i go to a website like j. crew, it doesn't seem to know that much about me. it would be more personalized next to your technology. >> absolutely. if they were using eugenie they would be able to show you more content personalized to you specifically. emily: tell me about your customers. what's the vision? >> 50 million people have seen a website personalized by mutiny. we are behind some of the fastest growing companies. to give you an example, one in three months was able to increase their conversion which means reduce their cost of advertising by 60%. we are seeing some incredible

results and momentum. emily: it's an interesting time to be talking about this because we have been talking about big tech earnings results, advertising driven companies, snap just reported and the results weren't great. is that because companies are using -- moving their advertising dollars away from snap and facebook and google and into other ways to make money or because advertisers aren't spending money? >> historically, companies have not had many levers outside of spending money on advertising in order to grow the revenue. we are big proponents that companies need to start shifting some of that spend toward technologically enabling their own properties and their own websites so that when they get the handoff and the visitors and upcoming to their website interested to buy their product,

they are able to give them a great experience and convert them into revenue. >> you just raised another round $50 million. talk to us about what you will do with the money and what's next. >> we started with the website. our vision is to expand and be able to personalize all of the different customer touch points. we are excited to use this funding to grow our team and expand our product. i believe that every company in the world can use our technology so we are excited to go on that expansion journey. emily: thank you so much for joining us. coming up on this earth day, we will speak to a ceo who is making crypto more sustainable. that's next. this is bloomberg. ♪

emily: it is time for our trip to report. we are joined by sonali basak. it's been a crazy week in equities. how has it been in crypto? >> look at bitcoin, it was down 2% over the last 24 hours. that brought it down to 39,000 640 or so. it hasn't gone anywhere in more

than a week. it has come full circle even when it caught a bit for a while. when you look on the year, you have pressure on bitcoin prices. they are generally down on the year. they have not recovered to the highs of last year let alone the highs of this year. the question becomes what kind of info -- innovation happens when bitcoin is under pressure? what happens to layer one and they are two protocols? at what point does venture capital and other form of fund flows impact was happening when it comes to creating new assets? >> thank you for that update. coming up, i want to bring in our new guest. thank you for joining us. how do you do that? >> our founder is an award

winner in computer science. he is a professor at m.i.t.. he invented a few things that are central to cryptocurrency. he launched the space and he watched the layer one protocols. they were costly, they had a large environmental footprint. they are slow. he said i can probably build something better than that. the thing in crypto is it's all about the quality of the consensus mechanism. he came up with an elegant one called secure stake. this enables our company to be at the same time very decentralized highly secure and highly scalable. the thing that is interesting about that, it was a challenge that was set out years ago. he said it's impossible.

if you want scalability, you have to give up decentralization or security. our company famously has broken through that level so you get all three with a low carbon footprint. >> for those here who believe heavily in bitcoin who don't want to move to proof of stake, what are the frictions and converting those believers? >> bitcoin is a digital store of value. it's a digital role. but it can't do things that other layer one protocols can do better enabled by smart contracts. a different game. all of the supply chain management that you can do, the various things that come from the ability to have money that is programmable, you can't do on the bitcoin blockchain. for that, you have to look at other kinds of layer one. we are built to compete with traditional finance because it's fast enough, it has settlement

finality. it can compete quite well in that realm. >> you mentioned the cofounder of ethereum. his argument is it's the second-largest cryptocurrency, it is gearing up for a big transition to proof of stake from proof of work. what are you looking for with the ethereum merge and what are your expectations for what comes after it? >> we have been waiting for that upgrade for a while. i have no particular insight into their product timeline at all. i do know that in its nature, a proof of work protocol is not going to be environmentally friendly because the way that the nodes agree, they are running an arms race of energy consumption in order to be first to win the race for the next block. proof of stake protocols are

more environmentally friendly. the problem is traditional proof of stake protocols tend to go to a winner takes all mentality and by the way when the person with the highest stake gets to append the next block, all of the bad actors know where to attack. they tend to be less secure. we are trooper from stake protocol which gets rid of the level of uncertainty. it has a very light carbon footprint. >> i wonder if you can parse through the noise. so many bitcoin miner's are trying to be greener, but when you are operating on a proof of work concept, can you be that green? -how much alkimi progress can the minors make when it comes to the overall carbon footprint of the coin? >> they are up against a seriously steep hill. they can do a couple of things. the energy that powers them can

be renewable energy. then bitcoin advocates will point out that they don't get energy subsidies for the energy they use. they use fair market price for that energy unlike many other industries. they will also say we are affordable and we will go to wherever the lowest energy source is. in bitcoin mining, you will move to where there is renewable power and cheap resources of power. that's the kind that they would say with a stick up for themselves. they get it more and more. they know they needed to become greener. it's just very hard to do on a proof of work protocols. it's baked into the mechanism of the protocol makes it hard to do. congress is starting to look more closely at the climate impact crypto. what are you expecting in terms of regulation? >> i don't know. i don't think they're going to

look deeply at the carbon footprint from a regulatory point of view. it may happen, but they are concerned about investor protection and money laundering and that kind of thing. that's where regulation tends to stake its claim. not just for congress, but for the american people and for businesses that know they need to be green and they have a esg goals they have to meet, they are not going to tolerate putting large-scale businesses on a blockchain that uses a lot of energy consumption. you saw what happened with world wildlife fund they tried to issue nft's on polygon. that's a proof of stake walk chain built on it theory him and that's a proof of work octane. the british conservatives, the conservation people were up in arms about this. world wildlife fund had to call back nft's. it was a mess.

it's because the world wildlife fund not choose a carbon negative layer one blockchain, they should have chosen us. >> over the next six month, what of the most promising applications will be built on algorand. >> the thing about us is we can handle scale. we can do 10,000 transactions per second by july. in 4.5 seconds, it is settled. you don't have to worry about forking or that uncertainty. that lends itself to a number of different applications. firstly, financial inclusion. we have 1.7 billion people in this world don't have access to finance. alva rand -- algorand

can scale to make sure that can happen for those people. there's tons of supply chain plays and we have a lot of environmental and climate focused applications built on algorand if they need to be. planet watch is a good example. they put sensors in the air to see air quality. you need that kind of thing on a blockchain because you don't want cheating with the data. >> will have to have you back when we have many more hours to discuss all of the complex issues. i appreciate you digesting it down to a few minutes. coming up, elon musk looks one step closer to a twitter takeover. we will find out whether he is set to seal the deal. that's next. this is bloomberg. ♪

>> it feels hard to believe that the iphone 14 launch is only six month away. that means it's time to start discussing what we can expect from the next generation versions. the iphone 13 was a fairly needed update focusing on camera enhancements, a minor speed increase and a higher frame rate display. this year's new arc -- upgrade will be more significant. it will follow apple's recent pattern and reuse the same general look for the third year in a row, but it will add some enhancements. you can expect a larger camera, updated colors, and a pill shaped cut out for face id and hole punch size cut out for the camera to replace the notch. the larger notch will still exist on the regular versions. the other key change will be screen sizes.

apple will now offer the pro and regular models each in the same 6.1 inch and 6.7 inch sizes for the first time. it will also stop making the 5.4 inch mini size. you should also expect 14 pro to get a new chip. while the cheaper models will likely keep the a 15 processor for another year. the pro versions will also get a new 48 megapixel camera for the wide angle lens to take far better pictures, but the regular fourteens will likely stick to 12 megapixel sensors. another feature asked -- apple has been working on is the ability for the new iphones to send emergency text and report sos situations over satellite. that would help apple compete and gain a new cool lifesaving feature. emily: you can subscribe to his newsletter at brodd.com.

let's get back to twitter. renumber what elon musk said about potentially buying twitter last week. >> risk is decreased if -- the more we can increase the trust of twitter as a public platform. i do think this will be somewhat painful. i'm not sure i will be able to acquire it. >> where are we now? let's bring in ed ludlow. >> if elon musk is taking this seriously, it could be a real deal. according to sources, he has been vetting potential partners. he had that backing from name banks, but he needs to come up with $21 billion of equity financing. it could be his own pocket, it could be partners. he instructed his advisors saturday night of easter weekend, by wednesday he had the

banks. then he is going on zoom meetings trying to convince bankers about his vision. now it could be days away from getting settled. emily: doesn't the board have to agree? >> they do and they said on thursday they have received his offer, the original one $54 per share. what's happening next week? twitter earnings on thursday. fast-moving. emily: so much to continue to wait for. have a great weekend. to all of you, have a wonderful weekend. it is friday, our favorite day. that does it for this edition of bloomberg technology. coming up, wall street week with david westin. don't forget to check it out along with our podcast wherever you get your podcasts.

i'm emily chang and this is bloomberg. ♪

david: sloman growth, rising inflation, and the war in ukraine. this is wall street week and i'm david westin. >> the fed is concerned about inflation. with skill and luck, we will have a good year. david: on this earth day, our guest on where climate heads on the wake of the ukraine war. >> if you thought it was bad, it's worse in terms of climate change.