>> 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. coming up, market meltdown. stocks sink, yields surge. investors getting jittery about whether the fed could fight inflation without plunging the

economy into recession. amd getting caught in the selloff after surging post earnings. we talk to the ceo about how she is driving massive growth amidst forty-year inflation, lockdowns in china, and an ongoing chip crisis. uber shares down multiple days in a row, despite selling shares before a market wipeout. we speak to the ceo later this hour. why he is confident about demand and consumers on the road ahead. we get to that in a moment. but first, the market stocks plunge in a violent reversal from wednesday. the decision to raise rates initially boosted markets. tech stocks have had one of the sharpest you turns ever. >> you are completely right. the long list of superlatives. nasdaq 100, very heavy index, worst day since 2020. mega caps, u.s. listed shares

having its work in september 2020. u.s. 10 year yield, the benchmark 10 year yield treasury. 3% for the first time since november 2018. that is a snapshot in time. thursday's session. a complete reversal from what we saw wednesday following the fed decision to raise rates by 50 basis points. the commentary from jay powell. bringing it up on the screen. the overnight changes. went to bed wednesday night thinking the fed has this. 50 basis points in line for the next few meetings. no discussion of a 75 basis point hike. the fed has this. they can fight inflation without bringing us into inflation. wake up, completely different story. worried about stagflation, the fed doing enough to combat the inflation picture. a lot of fighting talk. the strength of the economy, the

tight labor market. earnings season, corporate america hearing positive noises. emily: a number of former fed officials did not agree it was enough and it would plunge the economy into a recession. i spoke with uber's ceo about their earnings results. there stocks have slid multiple days in a row. despite a different picture from lyft. take a look at his reaction. >> we are focused on what we can control. can we build a great service, and can we arrive the reopening in terms of bookings growth, profit growth, free cash growth, and the answer based on results and what we see going forward is a resounding yes. emily: what do you make of that? >> they gave a bullish outlook. demand is coming. they had their worst today drop

since march. kind of caught up in a contagion with lyft. look at mega caps and how the biggest names performed on thursday. some of the worst performers on the nasdaq 100. i had to look twice on the bloomberg. the worst day for apple and microsoft since october of 2020. not just sensitive to what we are seeing with higher rates, but there is a discussion about supply chains globally and the situation with china lockdowns. you have a good guess. emily: strong indeed. thank you. it was a nightmare on elm street day for the nasdaq. that is how my next guest is framing the selloff. the managing director joins me now. what is your take on how bad the nightmare is going to get and how long it will last? >> today, i call the declines relative to advances over 90%. i view them as nearing some

capitulation stage. my conversations with tech investors were so negative today, it is almost bullish. i continue to point to this is just a white knuckle period, i believe we will look back and some of these will be way oversold if you are willing to hold it through this roller coaster. emily: why is it hitting tech harder than other sectors? >> it is a few things, leveraging the grossing across the board. a lot of it is institutions levered to tack. i think the other thing, multiple names. even the other things that are not expensive names, apple and microsoft, you are just seeing -- i don't believe numbers into the next year. what am i going to pay? i'm totally uncertain, i will sell these names. covering tech 22 years, the only

time i have seen times like this, late 2009, even the early days of covid. we are starting at that panic stage. you look at earnings season, have and have-nots, but enterprise, cloud, cybersecurity, strong. semis. strong. of course, usually e-commerce and other things. but we are starting to get in this horror show opportunities. emily: lyft lost one third of market value. another gem, you called spending guidance, a 1980's rock star like disaster. uber shares getting caught up in that, despite a different outlook. what do you make of that? >> if you look at lyft, something doesn't connect. it is probably one of the top

three worse conference calls i have heard in 20 plus years of doing this. i think part of it is they could not explain why they are spending. the driver shortage is there, but it is not where it was six month ago, even nine months ago. spending so far have this was ahead scratcher. -- spending so far ahead of this was ahead scratcher. i look at what uber is doing, almost in sympathy, these stock trade starsky and hutch. they trade in tandem, so clearing the investment penalty box. they need to prove themselves. but i think it is way too aggressive spending. i would be surprised if they spend it when it is all said and done. emily: i want to ask about the long list of unusual names that have joined elon musk in his deal for twitter. larry ellison, who is on the tesla board, and -- the qatar investment authority and

finance. what do you make of how this is coming together? >> i think in this poker game, musk got twitter. and it was about the financing component. so ultimately undoing a bit of his burden in leveraging the tesla stock, both debt and equity. it is a who's who in terms of who you've got. ellison, his confidant, but you go through, sequoia, fidelity. it shows musk is not doing this alone. he will have a team strategically. even though in theory he could be temporary ceo. i think over time, he moves to more of a chairman role. i think that, even an overreaction today, his golden child continues to be tesla. emily: as always, appreciate you joining us and your metaphors. coming up, how chipmakers are

faring against the extended selloff. we talk with the amd ceo about their bullish forecast and outlook on supply catching up to demand. that is next. this is bloomberg. ♪

emily: after surging poster earnings to the best day in months, amd getting pulled into the selloff. the chipmaker posting more than $5 billion for the quarter and raising its full-year forecast. i want to bring in the amd ceo to talk about her outlook. thank you for joining us. we are seeing the highest

inflation in 40 years. lockdowns in china, a huge production hub. and a major ongoing war. how is it you are managing to post 71% growth and raising your full-year forecast? >> first of all, it is great to be here as always. there are a lot of things going on. a lot of disturbances around the world. for us, it is focusing on long-term strategy, delivering for customers and partners, ensuring we are getting new products coming out. we have a great strategy, a portfolio later this year. and what we saw in the first quarter. most important going forward. it is a really great time to be in the high-performance computing market. this is where our focus is. we are happy with the growth we are seeing. emily: big tech is underwater. amd got caught up in the selloff.

what are you preparing for in terms of how you plan to navigate a very uncertain macroenvironment? >> i think the important thing is to focus on the big picture. amd today is such a different company than we were a few years ago. we completed our acquisition of filings, which has a set of -- diverse set of markets. when you add up that to the data center strategy and what we made in the data center, we are trying to navigate -- there are a set of macro issues and geographic issues we are dealing with. fundamentally, people need more high-performance processors and more technology. so it is very much about having a long-term strategy, a very diversified set of markets, and ensuring we are focus on execution every single day for our customers. emily: the biggest problem in the chip industry continues to be supply not matching up with

demand. you outsourced, which has been widely credited with some of your recent success. when you look ahead, do you see being able to have enough supply to support this growth? all of the demand you see? >> we have been working, ramping up supplies in the last 18 months. even pre-pandemic, we knew our strategy meant we would grow substantially over the next few years. we have been working on our partners. of course on the waiver side, but on the back inside, all of the components you need. and we have been able to bring on a significant amount of capacity. that helped us grow so much last year, as well as the first quarter and the rest of the year. we forecast 60% annual growth. we expect a lot of capacity. it is very strategic for us. not just this year, but 2023 and

beyond. emily: the data center has been a huge success. how much demand is coming from cloud providers like aws and microsoft, versus increasing demand from other companies building out their own data centers? >> the data center has been our strategic bet for the last few years. we have done extremely well with the largest hyper scalers. they are using amd in a significant way. internal workloads and external workloads. we are also making progress with enterprise customers and customers looking at building out a hybrid environment. we basically doubled in the first quarter in the overall data center. we doubled in cloud and enterprise. there is a demand for more computing when you think about digital transformation, business transformation, all of the ai's.

there is very high demand in the data center. emily: speculation about the pc market and whether it hit a pandemic peak. pat gelsinger very bullish on this. where do you think the pc market is headed? >> in the context, the pc market had its best year last year. a very strong year for pcs. there was a lot of need for updated pcs and updated infrastructure as we were in the middle of the pandemic. we are taking a more conservative view of the pc market. we think it will be down high single digits. even with it, we are talking a market over 300 million units. my view of the pc market is which segments you are in. some of the low-end and the consumer facing areas have taken a soft spot in the first half of

the year. if you think about commercial pcs, people are investing a lot in i.t.. they want the productivity. looking at the high-end premium pcs and gaming pcs, there is demand. i think the pc market is a good market, but one where we have to watch the volatility. emily: i have to ask about your reaction to the supreme court leaked draft opinion showing roe v. wade can be overturned soon. amd has a good portion of the workforce in texas. more aggressive antiabortion legislation has already been passed. companies like salesforce have offered to pay for employees to leave texas. how are you thinking about this as a business leader? >> we are certainly watching the developments closely. i don't want to get ahead of the ruling. there is still clarity to be brought.

our priority will be first and foremost with our employees and ensuring the health and safety of our employees. we are watching the situation carefully and we will make sure we are focused on our employees. emily: the amd ceo, thank you for taking the time to join us. good to see you again. coming up. he helped unionize the first amazon warehouse in the u.s. christian smalls joins us next from washington fresh off of his meeting with president biden. this is bloomberg.

emily: amazon labor union president christian smalls testifying before members of congress about his efforts to unionize workers across amazon. he along with other union

leaders met at the white house. president biden, vice president harris, and the labor secretary. he helped workers at an amazon facility on staten island becoming the first to unionize. monday, a nearby facility voted against unionization. he joins us from washington. great to have you back on the show. you tweeted and met the president earlier. he told you you got him into trouble. tell me about the meeting and what you think he meant. >> i believe when you came out and said amazon is coming for you, he overstepped it a little bit. it was great to see that he still recognizes we have some regulations with the company as far as unionizing. emily: you spoke with vice president harris, the labor secretary. did they indicate if they are planning to get more actively involved? >> absolutely.

we had a great conversation. they spoke to not just myself, other leaders, organizers in other industries like starbucks and rei. artistic industry, as well. we have a library and as well. i want to give recognition to them. and we think there is going to be more support coming from the political realm. they mentioned they have implemented some things in their administration they are willing to roll out over the next couple of months and it will help us out on the ground. i'm excited to be part of that conversation. emily: you testified before a senate committee. i have a portion of the testimony. this is your response to a question from senator lindsey graham. >> that is the reason i'm here to represent the workers who

make these companies go. and i think it is in your best interest to realize it is not a left or a right thing, democrat or republican thing, a worker's issue. and we are the ones who are suffering. emily: what is your sense of whether the senators you were speaking to our part of the? a conference often so divided by partisanship? >> i had them reiterate that. i wanted to make them understand our voices matter. the corporations get to have the first say in everything, they get to control everything. whether it is the market, the laws, lobbying, whatever. even the government or some aspect. we don't have a say at the bottom as workers. the only thing we have a voice in is when we collectively come

together. when we collectively say we want a union, that right should be given to us. that is what i want to make sure that the message was clear-cut, that the workers are the ones who generate the revenue for these corporations. i think he got the message, because he did not last long, he left halfway through. i understand. it is something that has to be said, spoken about. emily: you won at one of the staten island warehouses. amazon is appealing that decision. they said they were disappointed with the outcome of the election. they said having a direct relationship, employees having a direct relationship is best for the employees. you lost at a warehouse across the street. i'm curious where you plan to do this next. given it is not necessarily a done deal. >> we are prepared on our side

to go to the court hearing and hear out the court evidence if there is some. and we will take our actions from there. definitely talking to legal reps to get the best advice. as far as our first election. at the same time, amazon should recognize the fact amazon workers at the facility voted for the union in favor of the union over 500 workers -- over 500 ballots were the difference. and as far as the second election, we definitely overshot it a little bit. we took on a huge task. we campaigned for quite a while, over a year. we had a new facility, new workers, new organizers. they did not have enough time to convince enough coworkers, which is understandable. for us, we have to reassess and

get back to work and organizing. emily: are we going to see you filing union petitions outside of staten island soon? if so, where? >> we are going nationwide. every building in the country has contacted us. we will continue with the plan to get everyone in the country set up. emily: you are saying every amazon warehouse in the country has contacted you about the process of unionizing? >> every amazon facility in the country, and then some, have contacted the amazon labor union. and we will have a conference addressing everybody nationwide. emily: christian smalls, president of the amazon labor union. special office meeting with president biden, thank you for joining us. coming up, are we headed for a booming summer, or will inflation spoil the party? we speak to the expedia group vice chair and ceo about the

travel trends he sees. this is bloomberg.

emily: welcome back to "bloomberg technology." i'm emily chang in san francisco. back to the markets. volatility spreading to crypto. ed ludlow taking a look. >> another long list of superlatives. bitcoin the biggest intraday drop since january. a violent u-turn. bitcoin pushed toward $40,000 a token following the fed decision to raise rates by 50 basis points. the commentary from jay powell. then we drop off and we are down

towards $36,000. in the higher rate environment, bitcoin trading at a narrow range. struggled to break out of the range. never got back to the highs at the start of the year. the old coins selling off, and either during the session on thursday. earnings season continues. there are some after-hours we want to look at. lucid reaffirming guidance between 14,000 vehicles. it is raising prices for supply chain issues. the stock trading water. really interesting selloff for zillow. tepid outlook. the worry is higher rates. the fed impacts mortgage rates. and the impact will call up the housing market. square, up 10% in after hours. talking about strength in the traditional payments process. during the session thursday, two stocks in the nasdaq 100 and the green. one of them, brooking holdings

up 3.3%. earnings, bullish outlook. summer of travel coming. just a few days ago, expedia said the same thing. down 6.7% on thursday. a lot of narrative. recession might hit them. not sure what is going on. emily: i have someone who might have an opinion. expedia shares tumbling. share earnings report. rising inflation and potential recession looms over the summer travel season. joining me is peter kern to talk about that and more. you saw the chart. what is your reaction? >> we were not expecting it. i think people are overreacting to some of the inflation worries, some of the other travel players and concerns. but we have not seen any inflation worries affecting the booking so far going into the

summer season and longer. so we were a little surprised, we thought it was a good quarter. i think we expect a continued good travel season, despite inflation concerns. emily: no question people want to travel. at what point does inflation stop the demand? >> i think what we saw from covid on a macro basis was a lot of savings in most households. and also, overspend in consumer goods. what we expect to see and what we have started to see is a fallback to norms. probably overspend on services including travel and hospitality. we have expected that. that seems to be playing out. long-term, who knows on inflation? in the near term, inflation worries don't seem to be canceling people's ambitions travel. whether they might rerate down what they are hoping to do.

maybe not paris, but san diego. we might see some of that. we expect people to travel regardless. and we participate in all segments of travel. if people travel a little more modestly, we will pick it up. we expect it to be strong, at least for the foreseeable future. emily: you saw a steep rise in bookings compared to last year, but you are not back to 2019 levels. i spoke to the airbnb ceo. somehow he always comes on the day before you. so i have to get your reaction. he talked about how they are ahead of pre-pandemic levels. even in cities. take a look at what he had to say. >> it is already above 2019 at this moment with airbnb. i can't say it is above for everyone. i don't know if hotels are back to 2019 levels, but we are. emily: next time, you have to come on 24 hours before.

what is your reaction? how do you explain the differences we are seeing? >> a couple things. we saw a very robust growth in the alternative account during covid. as did airbnb in segments. as cities have come back for them more, they are not fully back, but have done better in the last quarter. they are getting the benefit of that. verbo doesn't participate in the urban markets. we have been strong through covid. but i think cities coming back, puts them into positive territory. but hotels are not fully back across the globe. not all geographies are back. our mix of business, markets like in north america where we are back in more. and markets like aipac are still under where they have been because they are largely closed down. it is a mix of business. that is the story through covid.

pending on where you were strong. if you were in a strong place and the business was there because of covid, you did well. as things unravel, cities came back. long haul, international came back. we are definitely back and more than back in many markets. emily: some other news today unveiling your expedia group open world e-commerce platform. what is it and how is it going to augment the broader business? >> we have talked about how we have replied formed our technology to drive our own business faster. what we realized in doing that is if we built the platform to be externalized, we would provide the underpinnings for travel commerce or really any players. very robust b to b business, selling rental cars, packages. rewards programs, we power aarp

travel programs. many things. these are big enterprise-level deals. we are building the ability to take our full stack and turn it into micro services. if a partner wants to use our service capabilities or payment capabilities, or any part of our e-commerce stack or the whole thing, or sell cars or activities, anything to augment their business, we can provide the capability. so we think it will dramatically expand the number of partners we can have, which expands how much travel we can sell for our partners and how many travelers we consider. >> peter kern, vice chair and ceo of expedia group. always good to have you. emily: coming up, bitcoin plunging the most since january. what is going on? details next. this is bloomberg. ♪

emily: let's get to our crypto report with bitcoin dropping the most since january. as the market rout deepens about concerns about a recession. katie greifeld is here with more. >> i will start date -- big and say what a horrible day it was in the markets. s&p 500, the biggest stock benchmark in the world.

down 3.6%. the worst day in a week. a lot of it came in tech stocks. the nasdaq, worst since september 2020. a lot of the selling came in the biotech sector. if you look at the sector, 1/5 is worth less than the cash it holds. a lot of it came in the tech areas. the art innovation etf down 8.9%. one of the biggest inflows in about a year earlier this week. but a lot of the action was in bitcoin. the world's largest cryptocurrency found 8.4% today. if you look over a five day period, 8.6%. a lot of it came today. if you go back to the stock market, really painful. consumer discretionary, a lot of selling in the sector. selling in the e-commerce space. i'm thinking amazon, ebay, and tesla also selling off in a big way. emily: it wasn't just bitcoin,

to be clear. how broad-based was this selloff? >> it was remarkable. this space, the cryptocurrency ecosystem moves as one. most losses came in bitcoin. compare it to ethereum, the second largest cryptocurrency. down 6.4%, only being a relative term. the underperformer among the bitcoins. but if you look at some of these off coins, something about avalanche, they were down as much as 15% at one point at the worst of it. this is as we talk about the fed, the macro environment, liquidity coming out of that system. what it means for cryptocurrencies. and it doesn't seem so good so far. emily: talk about the companies that have made bitcoin crypto a part of their business large and small. how did it impact them? >> we have to go straight to

microstrategy. what was interesting about the earnings report, they took a hit on bitcoin holdings. bitcoin had a rough couple of months. what was interesting was on the earnings call, microstrategy cfo lining out if bitcoin falls to $21,000 per coin, microstrategy would face a margin call. they would probably have to sell bitcoin holdings. not close to that yet. hovering around $36,000 a coin. but if the trend continues, and it has been lower, we could get there. emily: a lot to watch ahead. katie greifeld, thank you for that update. coming up, uber shares continuing to slide. the ceo addressing the market meltdown and what he sees for drivers and riders on the road ahead. this is bloomberg. ♪

emily: getting back to the markets in a minute. earlier, i spoke with uber's ceo with his reaction of uber shares taking a leg down, even after dropping early to avoid comparisons to lyft. >> the reaction was significantly more negative than uber. maybe we are not on the same boat, but it definitely affected us. i think we are in completely different places. you see with uber the benefit of scale and globalization, the benefit of diversification, and the benefit of discipline in these markets. we are by far the number one player in the u.s., have been for some period of time. so when earners look to come

back to the marketplace and earn in a flexible way, they are coming to uber first. that is a real advantage. they are going all the time, not only driving, but delivering, etc. the opportunities to earn on the platform are greater than ever. and a reopening scenario. a lot of advantage comes to the number one player. and the number 12 player may be left having a hard time. from a globalization standpoint, the reopening outside of the u.s. has happened much faster. so we have dealt with reopening dynamics, bringing drivers onto the platform. we made big investments last year for some period of time. we have been used to this, we built muscles to do this. we are more diversified so we can lead into the west coast, which is opening fast. the east coast has a lot of profitability, u.k., all over the world. so we can lean into reopenings, but we are not to depended on one place. we are a very different global player.

and we have delivered that part of our business, and with reopening, delivering growth rates while they are healthy, 50%, they are not growing as fast. so we can take couriers who used to be drivers, a lot of them are not driving people because of safety concerns. now that the covid safety concerns are largely behind us, we can bring them back to drive, or we can bring earners to the platform to deliver things and drive people. we have a very fundamental business advantage over any player out there. emily: you say when drivers come back mother will go to uber first? you don't plan on significantly increasing investments to get drivers back. lyft is planning to increase investments. i spoke to their president about why. listen to what he had to say. >> i'm not concerned. the message is we see the demand coming back. and we want to invest in supply.

emily: the stock went off a cliff. you -- and it will lead to a subsidy? that is what we have seen in the past. >> we have already invested -- europe opened up last year, latin america has opened. we have been through this exercise before. they have been behind us as far as reopening goes. so we are very confident in terms of demand coming back. very confident in terms of supply. we have a structural advantage to bring on couriers, which is easier to bring on. the earnings opportunities are very significant now. as a result of the fundamental structural advantage, we are confident not only in topline growth, but margins. we guided -- lyft their numbers went from 75 million, 50

million, during that same period we had gone from 86 million, to 168 million, 270 million. so we have been hitting opposite directions for some time. what we heard from them, we are headed into free crash float -- cash flow territory. emily: a massive loss, $5.9 billion tied to your other investments. aurora, didi, are you reassessing your strategy? >> we are not reassessing our strategy. those investments were part of mergers and acquisitions, different activities. we made the right moves as you can see based on the operating results we are displaying, which is industry-leading. we will take a careful look at the equity stakes. plenty of liquidity. looking at free cash for profitability. we will look to monetize those stakes and return capital one

way or the other returning to shareholders over a period of time. but we are caught in the same downdraft everyone else is caught in right now. emily: uber's ceo. catch the full interview at bloomberg.com. getting back to the market meltdown and bringing in robert cantwell. how many companies got caught in the downdraft and how long does it last? >> it has been pretty ugly. but we are almost at the end of earnings season. your team has done a great job of reporting the numbers out there. e-commerce has had the first negative quarter year-over-year as far back as most folks can remember. even the first half of 2020, commerce is up. that has a lot of repercussions toward the other industries, software's, ridesharing, advertising. but to be frank, we think there is something bigger going on.

we think investors are reevaluating whether or not these are technology companies, limiting scale and low operating costs. netflix is now being -- other investors are looking at facebook's capital intensity and saying does their future look more like at&t than google? you see multiples rearrange faster than we have seen in a long time. in our opinion, they have likely moved too far in that direction. but we have to do our jobs. emily: you have had a flood of retail investors over the last couple of years thanks to companies like robin hood. what happened to them? >> a lot of them might not exist. you saw something similar in the late 90's internet boom. the explosion of e*trade's,

ameritrades, they ultimately had to stay alive, somewhat -- some went out of business, some went private. this very well could be the first big transaction we are seeing, but far from the last. we expect a lot of consolidation and shutdowns. we expect the ipo window to remain pretty shut. over the next 12 months, you are more likely to see a shrink in the total number available for investment then you are to see new companies available for investment. emily: where do you expect consolidation? who do you expect to see shut down? >> the worse the business model, the more likely the consolidation. you had a lot of ridesharing folks in the past 24 hours. that space is desperate for continued consolidation. takeaway and doordash have been consolidators. now they are divesting. we think the space continually has to do deals to repeat a

small number of players to be profitable. emily: uber should buy lyft? >> have you ever seen two businesses more in need of a merger? the ridesharing space is challenging, because they are competing for the same thing ultimately. i was in san francisco for the last 10 years while the businesses were being built up. they were creating themselves with the complicated fast-growing software platforms. they were treating humans like commodities. if we have learned anything, humans are actually a very precious input cost into the function of these businesses. those business models were more dependent on humans than just about any business in silicon valley over the last decade. that is a competitive place to be. really hard place for investors to be patient and find ways of scaling up business models. emily: how long does it drag

out? how long are we in the red? >> amazon set on may 15, growth rates relative to last year would start to look better and better. and we believe -- if you remember last year, the first half wasn't readily strong. the fastest growth in the u.s. in the last 50 years. the second half, different story. one of the worst holiday seasons the u.s. has experienced in 20 years. relative to last year, they will keep improving. investors have existential crises when growth rates are slowing down and management teams are surprised at how poorly businesses are performing. but it will get easier as the year goes on. it is possible as you see growth rates stabilize, you might see some of these multiples coming back to more middling ranges. emily: that sounds like someone -- somewhat of a silver lining. robert cantwell, thank you for giving it to us straight. that is it for this edition of

"bloomberg technology." we will follow the selloffs on the show and on bloomberg television. guess who is coming out tomorrow? doordash ceo tony hsu. we will ask if consolidation is in the future. don't forget to check out our podcast anywhere you get your podcasts. ♪

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