>> from the heart of where innovation, money, and power collide in the silicon valley and beyond, this is "bloomberg technology" with emily chang. emily: i'm emily chang in san francisco, and this is "lumbar technology." coming up, apple shares sore after an impressive second quarter.

an all-time services record also. i spoke with apple ceo tim cook and we will tell you what he had to say. and just as elon musk is poised to take over, twitter revenue misses on top of a new report that the sec is investigating how musk disclosed his twitter shares as he amassed a massive stake in secret. qualcomm diversifies beyond phones, cars, and computers. the ceo joins us later this hour. we will get into all that in a moment, but first, we are watching apple, and amazon results also out this hour. emily: well, it was a largely green day for the u.s. stock market. the s&p 500 ended up 2.40 7%, and the tech heavy nasdaq 100 also ended up higher by 3.48 percent. that was the largest one-day game since march 16.

we also saw yields higher, but did not seem to bother equity investors. of course, it was a larger -- largely risk on day, so we also saw bitcoin finish the day higher. the big story of the day was really all about big tech earnings. coming up, we look at apple because the stock is rallying after they reported earnings. they are up right now about .47 percent. they beat on sales and beat on profits. they reported sales rising to about 97.3 billion dollars, largely fueled by demand for iphones, demand for their web services. they also announced a $90 billion stock buyback program, so you are really seeing that optimism reflected in the stock price, but it was not positive for all of the big tech companies. i'm looking at amazon right now, down 9.54 percent. they missed on sales for this quarter, but they also projected forward guidance that was lower than analysts expected for the

next quarter, and it was the same thing for intel. we are seeing intel down about .4% in the post-market. they also projected that forward guidance for the next quarter was going to be lower than analyst estimates. twitter also reported earnings this morning. one of the final earnings reports before mr. elon musk takes the company private. they did miss on revenue, but interesting to note they did report a 16% increase in daily active users. daily active users group to 229 million, which beat estimates. we are also seeing apple shares falling a little bit mostly now in the after hours. emily: let's breakdown. i want to start with apple beating estimates yet again. shares rising in extended trading amid apple's biggest non-holiday quarter ever. i spoke with apple ceo tim cook romans ago to break down his remarks and the numbers, i want

to bring in the vice president and principal analyst at worst research and our bloomberg tech executive editor. thank you both for being here. it is fairly impressive to see how apple weathered the environment. on the call with me, tim cook said it was a record quarter and they group in each category except ipad where they had significant supply constraints. he said they did experience supply constraints, but they were significantly lower than what they experienced in december. chip issue related. that of course is industry-wide. what is your take away, despite these apply constraints and despite macroeconomic uncertainty, apple still blowing it out of the water. >> it is exciting to watch, and one of the things we always know about apple, in terms of worldwide market share for something like smartphones and

pc's, they have a minority stake , and apple is always going in a forward direction. if i own a mac laptop, i'm more likely to buy an iphone with my next purchase, so the stickiness is very high, so there is a lot of upside for apple ahead as we move forward. emily: help square this with amazon results, which we will dig into later in the show. tim cook did say they are seeing inflationary pressure, but that is in dire growth margins. we see they are navigating that as fast as they can, but still, these numbers. tom: it is a night and day situation here. apple benefited from the fact they introduced a lower cost iphone. that started to kick in this quarter. as your other guests pointed

out, services, they keep adding services and keep making that an attractive proposition for iphone owners and getting you to come back to it, if it is app downloads, entertainment, etc., so it just keeps going on and on and on. amazon, huge contrast. inflation, inflation, inflation, seems to be a huge issue. you're talking about rising fuel costs. we broke the news that they impose a surcharge for partners to account for rising fuel costs and other inflationary pressures. that took a toll. overcapacity is another important story about amazon. they really invested in warehouses. they invested in people because remember, amazon had this surge in demand during the pandemic. we were all at home and ordering everything online, and that hugely benefited amazon. that party cannot continue forever and we are starting to see the effect of the trail off

in the pandemic-fuel boom that amazon benefited from for so long. emily: i did ask tim cook for more color on what he is seeing when it comes to demand and supply chain issues, and he said they would get into all of that on the call. we are listening in and blowing along on our blog. he said they would get into russia specifically and what kind of hit they took their. what is your outlook on how apple continues to weather supply constraints? should they persist, given an ongoing lockdown in china? julie: i think he kicked it off when he started the call and said despite whatever happens, if there's a war or pandemic, supply chain issues lock and out of china, apple continues to weather it well, so they just seem to be better positioned and perhaps some of their competitors in consumer electronics to ride through some of these apply chain issues even

though it is affecting one or two of their categories today, so i just never underestimate what apple can get done. emily: i want to talk about their services business because the other big story is streaming on the decline we saw in netflix survivors. apple has a significant position with tv plus, and i ask how that is doing. he said they are very bullish on tv plus, and the goal is to create high quality original content that aligns well with their values and to be one of the most desired platforms for storytellers and he feels they are doing a pretty good job of that. he highlighted "coda" which of course won the best picture oscar, which i think was extraordinary. he highlighted also "ted lasso." certainly not as big a bet as netflix has made on streaming, but what do you make of that? tom: they are coming behind.

they don't have to prove themselves in a way. netflix is the player to really knock off on streaming right now, and we are starting to see that happen. apple is a much smaller player. they are coming from behind, and it is all upside to them. it is one of many businesses, this is a small overall percentage when you think about where they get their revenue from. it is on most like gravy for them in some ways -- it is almost like gravy for them in some ways and they are not betting the farm on streaming. they are making great shows. we are all waiting on the next season of ted lasso, but it is not the centerpiece of their strategy. i'm very curious about any sort of detail they can give us on huge numbers, and are they getting subscribers who are maybe not spending as much time on net ask right now. and on supply chain, i want to add on to something julie said, think about where chinese lockdowns are.

the parts of china that apple is really dependent on are not the parts of china that are most severely hurt right now. i was excited to see how upbeat tim cook was about the supply chain issues p of the lockdown spreads much further throughout china, what happens then? emily: we will be listening for that on the call. thank you. much more to come. we will be talking about amazon falling after less than stellar results. breakdown on that including inflation and a supply chain swing and a miss. ♪

emily: amazon tumbling after a less than stellar earnings report, including a loss in the first quarter and projected loss in the second. i'm joined by a former amazon employee. what is your take away here, especially given such strong numbers from apple? >> this quarter, people returned to stores. there's also more competition in e-commerce. walmart and super target all have a target on amazon's back and are getting better. the supply chain issues everybody knew about. the other thing that happened,

amazon did increase prime rates, and we did see the subscription revenue was slightly higher, but that is definitely something people watch. emily: what about the supply chain? we are seeing apple, for example, navigating supply chain issues quite well. what is it amazon needs to do, and how are amazon's issues different from what a company like apple is facing? >> apple has spoken to rollover what they are selling. with the lockdown in china and zero-tolerance of covid, sellers are not able to get their goods. amazon is reliant on brands that

are reliant on manufacturing supply chains. amazon is a marketplace trying to navigate all these things. emily: meantime, of course, we are seeing wage inflation, rising gas prices. how will this all impact consumer spending, which is the bread and butter? >> es, amazon implemented a fuel surcharge that actually goes into effect at the end of april, so a couple of days from now. the reality is that prices are going up, cost are going up, so there will be some slowing, but there are some bright spots. one of the things people complain about was q2, that had

some core guidance that i think the market liked, but questions when q3 is here, so i think customers will be looking for deals. amazon is going to be having a huge q3. emily: let's talk a little bit about streaming because amazon also has a bet here, and it impacts potentially prime subscriptions. we saw what happened with netflix. we just heard tim cook telling me apple is still bullish on apple tv plus. this is a big area of spending for all these companies. should amazon keep pouring money into this, and how does it impact the bottom line? >> i'm positive about amazon's streaming opportunities. they are going to have the most expensive show this fall with "lord of the rings" and they are

also talking about bringing nfl games to black friday. what is beautiful about amazon's streaming opportunity is also the ad revenue they can get from these shows, the premium inventory they can put through their advertising network, and that is a great opportunity for them, but also thinking about advertising, that also was a slight mist for them this quarter as well. they missed expectations, but it kind of goes back to friends cannot advertise what they do not have, so supply chain also impacted. emily: thank you, as always, for your analysis. we will continue to follow the amazon call as well. coming up, looking at twitter before elon -- looking at twitter's last results before elon musk takes over. ♪

emily: on two more earnings. let's look at twitter. missing analyst estimates, and this one of the last reports before elon musk plans to take over the company. musk has signaled he does not necessarily want twitter to rely on ads and might prefer a subscription model. let's ask our next guest, the global head of technology at third bridge. how do you think elon musk is looking at these stats? >> i think honestly, they are largely in line when you see the numbers go up so significantly, i think there are positives to take from the results, and i think he is probably also reading a lot of the tweets

about people suddenly gaining a lot more followers, and they are obviously constructive on that. emily: let's talk about the broader industry. clearly, we are seeing digital ads take a toll. we saw it at meta. we saw it at snap. how do you expect this to play out over the rest of the year if the macro environment not significantly change? >> historically, if you have challenging economic backdrops, it would seem like those areas, including historically digital advertising, would actually perform better because the thought is that the shift over from, say, legacy or traditional advertising to digital advertising would accelerate, given that more challenging backdrop. now is a different time, though, however because of the impact of i bfa, which has had an impact

on a lot of digital and social media advertising companies. it is one of the reasons we have seen meta platforms struggle so mightily, and people cheered when the company generated 7% revenue growth. emily: let's tap a little bit into this elong deal. how will lucia are you on this? clearly twitter has -- how bullish are you on this? clearly twitter has value, but still very controversial if it is going to be good for this platform. >> i think one of the things everyone can agree on -- and there's a lot of different opinions on this proposed transaction -- is it elon musk ends up biting twitter, a lot of change is going to come to the company and the platform. if the changes will be for the good or the bad or otherwise

remains to be seen, but a lot of us who have and using twitter for a lot of time would acknowledge that it is largely the same platform that it was 10 years ago, and that in and of itself i think speaks to some of the issues that people have around twitter. that being said, however, i think the reality is i look at it as a pendulum that sits between twitter's focus historically on health and safety at least over the last couple of years, and musk's indicated focus on free speech. musk obviously wants to shift it more to free speech. what that will do in effect is render less relevant or maybe irrelevant the notion of content moderation, which twitter has spent a lot of money on, has a lot of employees doing, and that is clearly an area that musk

would seemingly look to make cuts to help not only fulfill its free-speech goal but also to help preserve and grow free cash flow. emily: the ftc has open an inquiry into how musk disclose his twitter steak and if he followed the rules there. what do you make of this and potential regulatory headwinds to this deal? >> i think a lot of people have been looking for potential holdups in this transaction, especially legal and regulatory ones. i do not know the specifics of the inquiry, what exactly they are focused on. musk is no stranger to a lot of these types of issues, but he has been able to get through them. i cannot imagine that those types of issues are going to hold up this deal. i think at the end of the day, this really comes down to does

elon musk follow through on his financing and consummate the transaction, and what happens next? i frankly think there are a lot of questions about the financing and the follow-through, but in terms of legal and regulatory, i do not expect that to be the primary impediment to this deal going through. emily: thanks so much for joining us. all of us very anxious to see how this deal plays out. meantime, snap is trying to make it even easier to take a selfie. the company just unveiled its yellow square-shaped flying camera drone called pixie. the inspiration was what it would feel like if tinkerbell were your personal photographer. now you can have that personal photographer for $230. it is available for preorder in the u.s. and france and is expected to begin shipping next month.

coming up, qualcomm shares spiking. the ceo will join me to talk about their massive quarter and the company's evolving relationship with apple and samsung and we have been closely following apple's results, a beat almost across the board. revenue, sales, i've had sales, as well as mac sales. >> i want to acknowledge the challenges we are seeing from supply chain disruptions driven by both covid and the devastation to the war in ukraine. we are not immune to these challenges, but we have great confidence in our team, our products and services, and in our strategy. emily: later, an update on that microsoft activision deal. wall street seems to be betting it's going to fail. we tell you why next.

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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. a™ ♪

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 something 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 kennett weather 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. a™ ♪

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. ♪

>> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates or its employees.>> this isd adver. >> many times a been out here with a new coin release and i've asked for a drum roll. in all honesty, and the past has been nothing but hyperbole. this time i really would like a drum roll. this is the singular most