>> this is "bloomberg technology ," with emily chang. emily: coming up in the next hour, apple shares sore after an impressive second order, records almost across the board on iphone sales, ipad, makkah, with

all-time service record. i spoke with tim cook and we will tell you what he had to say . just as elon musk is poised to take over, twitter revenue misses, slowest growth in six quarter on top of a new report that the ftc is investigating how he disclosed after amassing a massive steak in secret. qualcomm sores after diversifying around phones, cars, and computers. we will get to all of that in a moment but first we are watching apple and amazon results. emily joins us now to see how investors are reacting. >> it was a largely green day for the stock market, the s&p 500 ended up 2.47%. the nasdaq 100 was higher by 3.34 8%. the largest one-day gain since march 16. yields were higher but it didn't

seem to bother investors and it was a largely risk on day with it going finishing the day in new york higher. we tend to see that risk on trade with bitcoin getting higher and the big story of the day was all about egg tech earnings. looking at apple right now the stock is rallying after they reported earnings, up .47%, beating on sales and profits, rising to about $97.3 billion in the quarter, largely fueled by a demand for iphones, their web services, and a $90 billion stock buyback program. you are really seeing the optimism reflected in the stock price. but it wasn't positive for all tech companies. looking at amazon right now, down 9.54 percent in the post-market, missing on sales for the quarter but projecting a forward guidance that was lower

than what analysts expected for the next quarter and it was the same for intel, down about 4% in the post-market, projecting their forward guidance for the next quarter was going to be lower than analyst estimates. twitter reporting earnings this morning, one of their final reports before elon musk takes the company private. they missed on revenue but interesting to note that they reported a 60% increase in daily active users. that grew to 229 million, beating estimates with apple shares falling a bit now in the post-market, emily. emily: all right, lots to break. apple beating and -- eating estimates yet again. this, their biggest nonholiday quarter ever. i spoke with the apple ceo, tim cook, moments ago, to breakdown his remarks.

i want to bring in tom and julie , think you both for being here. across-the-board it is fairly impressive to see how they weathered the environment. on the call with me tim cook said it was a record quarter where they grew in each category except for ipad where they had significant supply constraints and that they did experience supply constraints but that they were significantly lower than december and that they were all silicon shortage related, chip issue related, an industrywide issue that affected several products. what is your big takeaway? apple, still blowing it out of the water. >> one thing that we always know about apple is that in terms of worldwide market share it's a minority stake relative to

android and other platforms. apple is always going in a forward direction. it's common. i am more likely to purchase apple services. the stickiness of those services is high. emily: tom, how do you square this with their op-ed gross margins where they navigate as best they can? still, these numbers. >> it's a night and day situation here, apple kicking things in during the quarter where they continue to be this big moneymaker for them and they really took advantage of that. as your other guests pointed

out, services. they keep adding services and making it an attractive proposition for iphone owners and getting you to come back to it. whether it is after download's or entertainment or etc.. on and on and on. amazon, huge contrast. inflation seems to be a huge issue there. rising fuel costs, we broke the news that they imposed a surcharge for their partners to account for rising fuel costs and other inflationary pressures . it took a toll. overcapacity is another important story about amazon. they invested in warehouses and people. remember, they had a surge in demand during pandemic. we were all at home ordering everything online. that hugely benefited amazon. that party cannot continue forever and we are starting to see the effect of the trail off in the pandemic fueled boom that

amazon benefited from for so long. emily: i asked him more about supply chain issues and russia and we are listening in and he said they will be giving eight number on russia revenue specifically in the hit they took their, given that they paused sales on products. julie, what is your outlook on how apple will continue to whether supply constraints given the ongoing lockdown in china? >> not being a supply chain analyst, you really kicked it off starting the call. whatever it is, apple continues to whether the problems well. they seem to just somehow be better positioned than their competitors in consumer electronics, even though it is

impacting one or two of their categories today. never underestimate what apple can get done. emily: of course the other big story in the business world is streaming with netflix subscribers and apple having its significant position there with tv plus. i asked how they are doing and if they are still bullish about it. he said they are very bullish and that their process was creating high quality original content that aligns well with values of one of the most designed platforms chris story tellers and he high loaded coda, which of course won the oscar for best picture and i think was extraordinary. he highlighted the success of ted lasso. certainly not as they get bet as netflix has made on streaming, but tom, what do you make of the fact that this is an area that they will continue to invest in?

>> they are coming from behind here. netflix is the player to knock off on streaming and we are starting to see that happen. apple is a much smaller player. they are coming from behind and it is all upside for them. it's one of many businesses. it's a small overall percentage when you think about where they get the revenue from. it's almost gravy for them in some ways. they are not adding the farm on streaming. they are investing in great shows. we are all waiting for the next season of ted lasso. but it is into the centerpiece of their strategy and i'm curious to hear on the call anymore detail they can give us about their user numbers, the time being spent and if they are getting the subscribers who are not spending as much time on netflix just now. and on the supply something -- supply chain, something julie said, think about the parts of

china that apple is really dependent on. it's not the part of china that is the most severely hurt right now. i was very surprised at how up beat tim cook was about how much better supply issue is getting. question is, if the lockdown spread more significantly, what happens to apple then? emily: we will be listening for all of that on the call. to come, amazon is falling after less than stellar results. a breakdown of all of that including the role of inflation and supply chain. that's next. this is bloomberg. ♪

emily: amazon tumbling after a less than stellar result in the first and second quarters. i'm joined now by the resident and cofounder of pacu. what is your take away here given the strong numbers from apple? >> it's pretty crazy. this quarter people returned to stores and there is more competition in e-commerce. more sites that people are shopping at. they all have a target on the back of amazon and are getting better. the supply chain shortages, of course everyone knew about it. brands are also spending a lot of time negotiating with amazon and sometimes they stop shipping during the time through negotiations. and amazon did increase prime

rates in terms of membership and the subscription revenue had been slightly higher. it's definitely something to watch. emily: what about the supply chain? apple is navigating ongoing supply chain quite well. what is it that amazon needs to do, apples to oranges, how are those supply chain issues different from what a company like apple is facing? >> it's so different because amazon relies on merchant. especially with the lockdown in china, with the zero tolerance of covid, sellers, there was no manufacturing during that time and sellers were not able to get the goods.

amazon is reliant on marketplace and brands that are reliant on manufacturing supply chains. amazon as a marketplace is trying to broker these things and it is the brands and third-party party sellers who are struggling with the challenges there. emily: in the meantime we are seeing wage inflation, rising gas prices, how will this affect consumer spending, the red and butter of amazon.com? >> amazon did implement a fuel surcharge going into effect at the end of april. i don't think that has impacted too much yet but the reality is, prices are going up, costs are going up, there will be some slowing and there will also be some bright spots. q2 also has some core guidance

that the market likes but prime day is always a shining star and that will be in q3 this year. i do think that they are going to be looking for deals and amazon has that capacity, filling out their supply chain it's going to be a huge q3 this year. emily: streaming impacting crime subscription, we just heard tim cook telling me that they are still very bullish on apple tv plus. this is a big area of spending for these companies. should amazon continue to pour money into this? how does it affect the bottom line? >> super positive on their streaming opportunities, they just closed on a deal with mgm last month. they will have the most expensive show this fall that sounds pretty cool, lord of the

rings. and they will be bringing nfl games to black friday. what is beautiful about their streaming opportunities, the ad revenue they can get from these shows. premium inventory they can put into their advertising network. that's a really great opportunity for them. speaking of advertising, that was a slight this for them this order. -- quarter. it goes back to brands not being able to advertise what they don't have. supply chain also impacted advertising. emily: all right, thank you as always for your analysis there. we will continue to follow that amazon call. coming up, a last look at the twitter earnings before elon musk takes over. what those results tell us about their future. next. this is bloomberg. ♪

emily: on two more earnings, now, twitter revenue missing analyst estimates, this being one of the last earnings reports before elon musk plans to take over the company, we are seeing a slowdown in advertising. he has signaled that he would prefer a subscription model. with this accelerate that plan? let's ask our next guest, the global head of technology at third bridge. how is elon musk looking at these ad results? >> honestly, i think they are largely in line. i think that when you see the number going up so significantly, there are positives to take from the results and i think he is probably also reading a lot of the tweet about people suddenly

gaining more followers. emily: let's talk a bit about the broader app -- add industry. we saw it at meta, we saw it at snap, how do you expect this to play out over the course of the year if the macro environment doesn't significantly change? >> what is interesting is that historically if you had a challenging economic backdrop it would seem that those areas would actually perform better because the thought is that the shift over from legacy to traditional advertising would accelerate, given the more challenging backdrop. now it's a different time, however, because of the impact among other things of i dfa, which has had a negative impact on social media digital

advertising companies and is one of the primary reasons we have seen meta platforms struggle so mightily. people cheered when the company generated 7% revenue growth. emily: let's talk a little bit about this elon deal. twitter has a lot of potential that has not necessarily been realized from a business perspective, everyone can agree. but still, very controversial whether or not he is going to be good for this platform. >> yeah. i mean, look, there are a lot of different opinions on this proposed transaction but if elon musk buys twitter, a lot of changes going to come to the company and the platform. whether the changes are going to be for the good, the bad, or otherwise remains to be seen.

but a lot of us who have been using twitter for a long time would acknowledge that it is largely the same platform it was 10 years ago and that in and of itself speaks to some of the issues that people have around twitter. the edit, for example, which musk highlighted in his tweets. that said, however, the reality is that i look at it as a pendulum, right? it sits between the focus of twitter historically on health and safety over the last couple of years and musk and his indicated focus on free speech. we have seen the pendulum swing far to health and safety and musk obviously wants it to move more to free speech. what it will do an effect is render less relevant or irrelevant the notion of content moderation that twitter has spent a lot of money on and has a lot of employees doing and

clearly an area that musk would seemingly look to make cuts to help not only fulfill his free-speech goal but also to help preserve and grow free cash flow. emily: there is a report that the ftc has opened an inquiry into how much musk disclosed his twitter steak and whether or not he followed the rules there. what do you make of this and potential regulatory headwinds to the deal? >> look, i think a lot of people have been looking for potential holdups in the transaction. especially with legal and regulatory ones. i don't know the specifics of what the inquiry is focused on. musk is no stranger to a lot of these kinds of issues but he has been able to push through them. i can't imagine those types of issues will hold up this deal and at the end of the day i think this really comes down to does elon musk follow through on his financing and consummate the

transaction? and what happens next? frankly i think there are a lot of russians about the financing and follow-through but in terms of legal and regulatory, i don't expect that to be the primary impediment of this deal going through. emily: all right, scott kessler, thanks so much for joining us. all of us very anxious to see how this deal plays out. snap is trying to make it easy -- even easier to take a selfie, they just unveiled a yellow flying camera drone called a pixie. this nap ceo's said that the inspiration for it was what it would feel like if tinkerbell was your personal photographer and now you can have that personal photographer for $230 and it is available for preorder only in the u.s., france, and is expected to begin shipping next month. coming up, qualcomm shares

spiking. the ceo will join me next to talk about their massive order and we will get his thoughts on lingering supply issues in china and evolving relationships with apple and samsung. we have been closely following the apple results, a beach across the board. revenue, sales, ipad sales, iphone sales, max sales, we have been listening to tim cook on the call. let's listen again to what he has to say. >> i want to acknowledge the challenges we are seeing, supply chain disruptions and the devastation in the war in ukraine. we are not immune to these, but we have great confidence in our team, products, services and strategy. emily: later an update on the wall street -- on the activision deal. wall street seems to think it's

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emily: welcome back. anyone concerned about falling chip demands need look no further than qualcomm for reassurance posting better than expected earnings. thanks in large part to the ceo plan to diversify the company beyond smartphones. he joins me now. you ended the call by thinking -- banking analysts --thanking analysts but reminding them

welcome is more than the chip company. -- reminding them that qualcomm is more than a chip company. >> we are now growing across all business in a number of different markets. handsets, yes that's a great story and it will continue to be a great story. no good deed goes unpunished. by doing well in handsets, the reality is the iot growth has been incredible. we added $3 billion to our pipeline at the quarter. the company is truly changing from what is perceived to be a communication company, it is a connected processor company for the intelligent edge. hopefully, that message came across. emily: you have gotten so many

questions about your relationship with apple. the call focused a lot on samsung. is it better for qualcomm to have samsung as a customer as opposed to apple and if so, why? >> that is very good question. it goes to the heart of our mobile strategies. here is the reason we are doing so well in handsets. we outlined it in the call. one of the fastest growing revenues for us in silicone content and earnings is on the processor side. we put the phone strategy in place. we want to be synonymous with premium and high tier android. when you think about a flagship android and -- you think about snapdragon. it has become the platform of choice for all oem to build

their phones. to go back to your question, when we sell a snapdragon into a galaxy x 22 from a revenue and earnings standpoint, it is probably equivalent of selling modems to five iphones. it is a great trade. especially when you look at the decision made by samsung as a result over the strategy of being very focused and snapdragon winning in all categories, the best -- fastest ai. with graphics and cpu performance, that is driving a shift from 40% to 75%. we are 40%, now 75% less.

emily: you have been optimistic about supply chain issues easing over the end of the year. here's what tim cook told me about supply. that we did experience supply constraints, but they were significantly lower than the december quarter and they were all silicone shortage related to the chip issue that affected us on several of our products. i didn't get a lot of color on supply issues in the current quarter, but how would you square that with what you are seeing? >> it is very consistent with what he said. in this year, we expect supply to improve dramatically. we said in the second half, we will have significant improvements in supply. that is happening.

having said that, we will still have more demand than supply. we are not the main constraint. especially for the company that is now part of the jet -- digital transformation, that is driving a lot of growth in our iot enterprise. emily: you gave a huge target for revenue coming from automotive. i'm curious how quickly we get to the massive total given where the business is today which is, it is growing but still relatively small. >> the way to think about automotive and that's the reason we provide the metric of the design wins that we have. we are winning the future silicone in the automobile industry. with 26 brands now, we see traction with our snapdragon digital chassis. digital cockpit connectivity

with the cloud and now autonomy. the way to think about it is, when we talk about $16 billion design when pipeline, cars that are going to be launching in 23, 24, 25 time frame they stay in production for five to six years. it is almost a contracted backlog and we just added 3 billion to the metric. it used to be $13 billion. one of the biggest components of that is our contract with lantus. emily: you said you want qualcomm to be judged by how well it conforms to a country -- company beyond phones. we have seen qualcomm take a beating along with other chip companies. the shares soared today. is there something you think

investors still aren't seeing that you want them to see in terms of the broader transition? >> absolutely. the way i will answer your question is investors have the tendency to think about the handsets and because we are doing well with handsets. 50% on the market that was flat to a negative bias and we grew 50% in the year. the reality is there is a broader story with qualcomm which is our technology is going to power the billions of devices that are enabling the cloud economy. we see that happening with the growth rates we have in our iot business 61% across consumer. the internetworking in enterprise. as i was watching you before you made the comment about the new drone snap, that is our chip. that is one of our many iot

categories that we have. emily: it is great when we can hear about your customers. i know for a long time, you have not been able to talk about your customers, so thank you for the specifics. that was the ceo of qualcomm. microsoft blockbuster deal for blizzard activision just got real after shareholder vote. why is wall street betting that the merger won't happen? give us the broader context. there was a shareholder vote. the deal seems to be moving forward, but still investors are skeptical. >> exactly. the shareholders voted to advance the deal today. it is an important step that had to happen. altogether, not too surprising. all eyes are on what the regulators do. this deal has a little over one year from now to close and it has to clear through the u.s., china.

brad smith from microsoft said many countries have to clear, but all eyes are on the u.s. competition enforcers and whether they will move to block the deal on anti-competitive rounds. emily: what is the likelihood that happens? >> wall street is saying that in the metric, it is three times more likely for a microsoft activision deal to fall apart then twitter. right now, if you own activision, you will get paid $95 if the deal closes. now it is trading at the mid 70's. that means that people are seeing a decent chance that this goes as planned. if that means that the ftc sues and it gets blocked in court or if the litigation is so long that of the reasons can creep in the deal fall apart. emily: what are the odds? what are the odds the deal falls apart? >> it's hard to say.

for decades, mergers in the u.s. were allowed to go through. it's hands off. agency leaders right now have said that big tech companies should not be allowed to grow via acquisition. microsoft has a good reputation in d.c.. it has escaped a lot of the tech lashed. that said, it is still the number two company in the country. the idea is they are looking for a way to get their hands dirty and test some new core precedents about mergers and this could be the case. whether or not it works, we will see. a lot of people think it could happen. emily: coming up, robinhood earnings. our crypto report is coming up next with the conference and the bahamas still underway. this is bloomberg. >> the need of the community

dictates the protocol. protocol is owned by the community. a lot of the work is around building primitives that are open sourced that can be taken by anyone and turned into amazing products built on the solana blockchain. ♪

emily: time for our crypto report. robinhood just reporting their results. it aims to become a bigger player in pepto. -- crypto. >> this was a difficult quarter for robinhood. it was always going to be a stark comparison between the first quarter and last first

quarter when we saw a huge run-up in gamestop and other meme stocks, but it was worse than analysts anticipated. we saw losses across all kinds of products categories. emily: let's talk about how they are trying to grow their crypto play and influence in the crypto market. as the company faces big challenges up ahead. they are through big job cuts. the stock is way down. >> the stock has plummeted since the ipo. the struggle robinhood is dealing with is the question of whether it can get users involved in more than trading on its platform. in the meantime, it is try to keep up with investors and go where they are going. on the crypto side, it has introduced new tokens including the long anticipated shiba inu

coin. that was a recent development. robinhood is introducing new products to trade, but at the same time trying to grow the types of products that it offers to investors in areas like retirement accounts. it added crypto wallets so it is offering new products as well. emily: what are you looking for next? how do you expect robinhood to navigate these challenges? the wall street darling, often very controversial. now when you're into being public, a lot of big existential issues. >> i think it is somet investors will watch closely whether robinhood can deliver on the message it has that it can expand and grow with users and touch more parts of their financial lives. so far, transaction revenues are the core driver of this company and it remains to be seen whether customers will go to robinhood for other types of

products as well. they're going to trade, but the issue robinhood is facing is that trading is way down from where it was in the pandemic. emily: how much has to do with the macro environment? not a lot of money to be spending right now on his questioner items like new equities and crypto. >> good point predict that was something that the managers -- management addressed on a call with reporters. they said robinhood has been a company that has operated in its history where inflation and interest rates have been low. now we are starting to see inflation come back and trying to curb that. the issue is k that storm? -- can it weather the storm? emily: coming up, more earnings.

our guest joins us for his thoughts on apple as well as headlines for getting out of twitter. -- headlines we are getting out of twitter. that is next. this is bloomberg. ♪

emily: taking another look at apple's results. dan ives is with us. what are your headline takeaways? weathering supply chain shortages and inflation with record results. >> it's a tale of two cities.

the demand story means robust. demand outstripping supply by 10 million iphone units. i believe the street. the knee-jerk is down in terms of the stock, but i believe they will start to look on the other side of this and normalize an environment. that is with the street is focused on even though the supply chain issues and china are clearly a headwind. emily: i spoke to tim cook and he said they grew in every category except for ipad where they had the most significant supply constraints. he said they had to do with silicone and we are hearing the cfo of apple doubled down on that on the call right now. these are silicone constraints they say that go beyond the shutdown in china.

how do you expect them to contingent navigate that in an ongoing covid lockdown? >> no doubt, with china it is on two parts. demand as well as supply. if it's going to happen, let it happen in the june quarter. ultimately, this is the buildup to iphone 14 in september. if you look at apple and the demand trends, it is important that demand is not softening. i believe they will ultimately be able to push the price increases that we see over the coming six months on the next iphone through to consumers. the supply issues are well known. the demand story is what ambassadors are looking at. to see if there are any tracks in the armor, and we are not seeing them. emily: it seems like apple is

fairly well insulated from the macro economic issues that other tech companies are facing. we are seeing a big hit to digital advertising which not only affected alphabet and youtube but meta and twitter. also impact on consumer demand given the sluggish results from amazon. his apple different? -- is apple different? >> i think they're different and what we are seeing in tech, there is a narrative that is emerged. microsoft cybersecurity cloud even the google part of cloud and amazon. if you look at apple, more tesla in mind. the pent-up demand cycle for iphone the continues to do next year's underestimated along with the services side. services beat the whisper. that is the story that is emerging here. apple continues despite everything.

we are seeing demand outstrip supply. >> we are getting details on elon musk pitch when he made a pitch to buy twitter that his pitch featured job cuts and other ways to make money. certainly hinted at wanting to move away from advertising, being more interested in this obstruction model. his pitch does focus on turning it into a more profitable business, boosting cash flow, monetizing the platform. he also brought up his track record at tesla and spacex. spacex has proven his success. what do you make of that? >> from a business model perspective, i think they're going to apace obstruction model. in terms of some of the job cuts some of the cost-cutting, this is a leveraged buyout. the only difference is he is

leveraging tesla shares to do it. it is going to create more uncertainty going forward. it's still a long time until this closes, but that's white for elon musk, the easy part relatively was buying twitter. the hard part is going to be fixing it. emily: do you think elon musk can do it? >> it's a whole other animal then tesla or spacex. we are talking social media, it has been an uphill battle for the next decade. i think tesla shareholders believe that this is going to be herculean challenge for musk. that's why you are seeing tesla shares -- you leverage the position and tesla to buy twitter and tesla shareholders are feeling the brunt of this soap opera plan out. emily: soap opera indeed.

thank you so much for your insight. we will continue to watch what happens with twitter. we will continue to fall long, -- follow along with the latest in apple and twitter results. i want to say a special goodbye to another very special person on our bloomberg team. she has been here running the show on the floor of bloomberg technology for 10 years. almost as long as i have. she is moving onto her next adventure moving to new york. she is not leaving the bloomberg family, we are so grateful for all of the time that you have spent with us and the energy and heart that you bring to this show. helping me put on the show for my basement during the pandemic. you will be missed and we love you. that does it for the show, we will be back tomorrow. i'm emily chang in san francisco. this is bloomberg.

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haidi: good morning. we are counting down to asia's major market open. shery: the top stories this hour. applebee's estimates thanks to strong demand for iphones and judo services. china's latest lockdown may weigh on the bottom line. >> amazon disappoints wall street. sluggish