>> from the heart of where innovation, money, and power collide in silicon valley and beyond, this is "bloomberg technology" with emily chang. emily: i'm emily chang in san francisco, and this is " bloomberg technology." coming up in the next hour, market malaise. the s&p 500 and the tech-heavy

nasdaq having their worst declines in a decade as new jobs numbers reinforce the idea the fed is staying firm on rates. plus, doordash hitting an all-time low despite strong earnings that show customers still paying for take away as we head into a post-pandemic world. and meta's first retail location ahead of its grand opening. a brutal selloff continues. this time, pandemic darlings leading the bloodletting. peloton hitting a new low. a lot of investors want to close the book on this week. ed: the nasdaq 100 at times pushing, and we thought we would end on a high, but it just was

not to be. the fifth straight weekly decline for that and other major indices, and the stories on the board, the yield on the 10-year treasury, which is a benchmark, up nine basis points. we have not seen those levels since the end of 2018, and even bitcoin at one point, you see as we go into the weekend session, $36,000 per token. it was caught up in this risk off kind of sentiment that we had, pushing lower back towards $35,000, kind of chopping as we go into the weekend. this chart tells the story of where we are at. it is not just a snapshot in time. this is a sustained selloff we are seeing, particularly in higher multiples. we are talking about software companies that are so sensitive to the rate narrative. earlier in the week, the fed raising rates by 50 basis points. ed chair powell saying 50 basis points was on the table for future meetings, but we are also concerned about recession risks. can the fed bring inflation

under control with a soft landing? you also talked to us about some of the names on the move. apple up .3%, and traders telling bloomberg on the trading desk that what could be going on here was this was the only stock talking about for a brief moment, when the nasdaq was in positive territory, apple was doing a lot of leg work on that. you talk as well about peloton and doordash. we will talk about those later in the show. record lows. peloton according to investors looking to sell a 10% stake. doordash worried about this opening. what a week. emily: indeed. i want to stick with the volatility that continues to dominate the markets. some of these companies actually had strong earnings results but

are still getting caught up in this downdraft. what is your take? how are you reading through this? >> my take on it would be the companies that actually have strong earnings actually did trade up, but there were very few of those companies. you mentioned doordash. fundamentals got stronger, but they are not yet putting up sustained gaap earnings. it's going to be a challenge for pure growth equities like doordash. i like it as a stock, but in this market, it is going to be a challenge. airbnb put up good numbers earlier this week. stock could not hold the gains. uber put up good numbers, stock could not hold the gains. the one that could was booking. they had positive results, a

bulletproof balance sheet, etc., so the market is very discriminating and will not tolerate growth assets right now. if you are a growth stock, you better have a good earnings track record. i think that is kind of what is happening. people are just going to the defensive end of growth. usually there's not too many names in that space. emily: based on the actions the fed is taking, how concerned are you about a recession and a prolonged market meltdown? >> i don't know. i'm certainly no expert, but my interpretation is that the market on thursday and friday said we do not believe the fed can orchestrate a soft landing. that is how i interpret what happened. maybe the fed can, maybe the fed cannot. i'm no expert. it will not be an easy thing to do, but that is what the market is saying. as an investor, one thing i have to worry about is if there really is a recession, that is not estimated in. it may be priced in, but it is not estimated in.

amazon on its earnings call said they have not seen any sign of consumer softening. we had a lot of issues in terms of cost but not in terms of demand, so things could get worse at amazon, at google, apple. none of these companies has stayed away from a real recession, so that's the potential for the other shoe to drop. the market is fearing that, pricing it in, and i hope the market is wrong, but until proven otherwise, i think that is what will hold back tech stocks and growth equities for the foreseeable future. i don't know if that is a couple of weeks, months -- hopefully not quarters, but it is that kind of timeframe. emily: we also might be seeing a changing of the guard in terms of what counts as a tech company. one of our guests had this to say about netflix and meta. >> netflix is being valued as a cable station. other companies are looking at

meta and asking if there future looks more like at&t than google. investors in our opinion have likely moved too far in this direction, but we've got to do our jobs and parse through it and find the good deals here. emily: saw you nodding there. do you agree? >> i think he made a real -- i saw a lot of really good points there. netflix hit a growth wall. the stock was priced -- the beginning of the year, i thought they could sustain 20 million, 25 million's of script and's going forward. we had to take of the premium that they had, and then you had the lower estimates. that's what got me off the netflix train early this year, but, yeah, when companies go x growth, you can have a real reckoning in terms of the stop rise.

now i think there's a lot of very interesting valuation arguments to be made about netflix. what market multiple do you want to put on that? where in that ballpark, so now there's a lot of valuation support for the name. i think facebook is different, and that's probably why i really like facebook. i think this will recover. but i understand is it's very controversial. i like it, and it also has a lot of cash on the balance sheet. emily: you also covered twitter, which has its own story going on, which is elon musk's takeover. he was tweeting earlier today more hints as to what he plans to do with twitter, focusing on hard-core software engineering, design, server hardware. what do you make of that?

>> i'm sorry, i did not see his tweets earlier today, but if he has started to develop a more detailed land for what he wants to do with the asset, i think that's great. i think there has been a product innovation problem at twitter for the better part of 5, 6, 7 years. if it takes a new management team, a new owner to shake it up and improve it, i think it will be great for all of us. i do worry about one thing, which is all the money comes from marketers and advertisers, and i have not heard anyone talk about how they are going to improve things for them because they are the ones that pay the bills at the end of the day. i don't think you will make much money if you try to charge a prescription -- try to charge a subscription for twitter. as an investor, i don't think there is much to do with twitter. i think this deal will go through, but maybe we will see it again in public markets in a few years. emily: always appreciate your insights here and helping us

wrap up a really painful week. thank you. coming up, doordash shares jumped in market trading but fell with the rest of the market. how much more growth is there ahead? we will ask our next guest. this is bloomberg. ♪

emily: the music is stopping for some pandemic darlings like peloton and netflix as people get back out into the world to live their lives, but it is still humming so far for doordash. revenue beating analyst estimates with people still

ordering more and more for food delivery, but how long does that keep up with inflation? we bring in doordash's ceo for more on all of this. it is a tough market to be in despite your truong results. we saw shares take a leg down. what is your take away from how investors are evaluating these results? >> i think it is certainly a tough market out there, as you acknowledge, but at the same time, at doordash, we are focused on fundamental results, and fundamentals are strong. we're continuing to build into new categories, grocery, retail. we are launching more than just in the united states as a global business but also making tremendous progress on building our platform in which we are helping physical businesses

become digital powerhouses in addition to the local marketplace we have been building. in times like these especially, i tell our teams to focus on the fundamentals and keep building the business. emily: investors seem to really be punishing or at least questioning growth stocks. i know some are wondering if it is because of omicron. doordash saw this boost in the last quarter. will that keep up? >> it has been two years or maybe a little over that during the pandemic season and we have continued to see growth. for u.s. restaurants business has grown 250% over the past two years. i think what you have seen, if it was early on in the pandemic as certain states opened up ahead of others or now where everyone is thankfully getting back into their normal lives and seeing family and friends in person, it is that people, even though they eat out and

celebrate, they are continuing to order delivery. that is why you are seeing the all-time highs. we have also increased profitability. we have seen a lot of strength in the business both in terms of demand but also in terms of our bottom line. emily: consumers are under pressure. inflation is rising. gas prices are rising. these are pressures beyond their control. how do you think about the macro environment? are you just preparing for more uncertainty? >> we have been looking to study inflation for the past four or six quarters because -- over the growth of inflation, i should say, occurred a bit more sharply than some had anticipated, and it certainly continues to be a real concern. thus, the focus is on taking care of all the audiences. obviously, we cannot control the rate of change of inflation, but

we can control what we do for dashers, making sure we are giving cashback on fuel expenses, making sure we are paying bonuses for longer distances driven. we can do that because we have a robust restaurant business where consumer demand is resilient gives us the ability to reinvest those profits into absorbing the cost from inflation so consumers do not have to bear any of that burden. emily: we did see a number of analysts cut price targets on doordash this morning, and i wonder how tight the labor market is for you in particular. it is not just restaurants that need labor. it is doordash and uber and lyft and domino's pizza fighting for drivers. >> we have not actually seen any challenges in getting drivers on the road. even before the recent rises in

fuel expenses or the sharp uptick, i should say, in fuel expenses, we had plenty of drivers on the road, and that is because structurally, we had a pool of drivers that is much stronger than other services like rideshare. 90% of the dashers come to our platform and do deliveries on a quarterly basis -- 90% of them deliver fewer than 10 hours a week. the average only completes about four hours of work every week. when you think about it from that context where it is truly part-time and supplemental income and compare it to something like ridesharing, which is more fuel -- more full-time, it is orders of magnitude in terms of drivers we can address, and we actually have not seen any of the pressures of getting drivers on the road, but that said, we do recognize that inflation is very real, and that's why we decided to invest in those programs, to make sure that earnings would not be impacted.

emily: interesting. on one hand, you are hearing lyft saying they will have to invest significantly to incentivize drivers. uber saying they don't have to, but they will. i wonder, are you going to prioritize the courier app experience and how if competitors are trying to step up. >> we don't really compete against rideshare for drivers. 96% of drivers we surveyed have no interest in driving other people. they just prefer to do deliveries. if you think about it, in terms of how they self select which platforms to work on -- emily: what about uber eats? what about domino's? >> sure, sure. we are just the first

consideration for most of these workers. your question about investing, stiff app, we always investing behind that experience to make sure it is lower experience to earn whatever you want and do it with consistent expectations of what you will earn when you're on the road because the work is still part-time. emily: investors are also suggesting we will see a lot more consolidation in this space, and given that doordash is the big player in this market, that makes you potentially a prime acquirer. are we going to see you do more deals? are you looking for more deals, and if so, in what area? >> the bar for m&a is very high for us. that's because we really respect how difficult it is to actually do it really well. for us, two things have to be true. it has to be accretive to the business. number two, it also has to be accretive to the management band

with we have. we are trying to build the largest local commerce business globally, so we have a lot of work on our plate. we have to make sure there cannot be any distractions and that it is entirely focused. that is what volt was such a great example. it added to our footprint, but the way in which they built their business, the culture around building the best product, making sure they do it in a capital efficient way, that aligns well with how we do things at doordash, and that was a perfect example of the way we do things. emily: we will be watching. coming up, a trip to the metaverse is real-world retail. we got a sneak peek at meta's first brick-and-mortar store. we will tell you if it is worth a visit next.

this is bloomberg. ♪

emily: monday is opening day for meta's first brick-and-mortar store. ed ludlow got a behind-the-scenes look at the store. ed: if you needed more proof that meta-is going all in on web three, then look no further. take a look at the company's first retail store where vr and ar polygraphs are front and center. this is a metaverse store in the real world.

this store is the size of a small house. less than 1600 square eight. opening it is a pretty gutsy move for meta-, considering other tech giants have tried and failed. in 2020, microsoft shut down its door locations permanently to focus on online sales. earlier this year, amazon announced it was closing physical bookstores, amazon 4-star locations and more pop up kiosks so the company could better focus on its grocery business, so why does meta think it will be more successful than its peers? ceo mark zuckerberg said the best way to expand virtual reality is to experience it -- the best way to understand virtual reality is to experience it. we have meta-'s virtual reality goggles, which sell for about $299.

>> hold, tap for a photo. single tap to start filming. double tap to get the music going. >> meta wants this store to be a bridge that connects users to the metaverse, but that means it relies on users actually being interested in the metaverse. that might not be so hard. in 2021, out of the 11.2 million ar nvr units sold worldwide, 70% were meta's quest 2, so they do have a large chair, but can it keep up the momentum? emily: bloomberg's ed ludlow. the store opens next week.

peloton still trying to turn its business around. according to bloomberg sources, the fitness company trying to sell a stake of about 20 percent, hoping to find a big-name corporation or private equity firm that can help validate the business with its investment. peloton had been contacting potential buyers, but the process is still at an early stage. palantir, meantime, just struck a 10 million pound contract. that's $12.5 million. it lets users cut costs by automating work and reducing data processing time. this is the firm's largest contract to date with a high-profile department. coming up, the longtime investor in and cofounder of zillow joins me next. his thoughts on the market meltdown and what it means for the housing market next. this is bloomberg. ♪

emily: come back to bloomberg technology i am emily chang in san francisco let's get back to the markets and our ed ludlow, there are two sectors of the markets we can tie up the big themes we are seeing in tech. >> e-commerce and then, houses. bear with me. shop a five down almost 9% on friday, after had a really rough thursday, most of those stocks at those lowest levels since mid-2020, the narrative is that there is a big e-commerce

slowdown, we are trying to navigate this transition a post-pandemic world. people are increasingly going to physical stores, they had earnings, earnings have the markets concerned, let's bring out this chart in bloomberg and extrapolate to where we are today. e-commerce is not doing great, percentage year to date losses, amazon did this thing last week with this sharp reaction to amazon, the concern there, shop five, wayfair, etsy. they are worse today, fit percent, 6% -- 50%, 60%, inflation is today, the concern about an -- recession where do we go from there? let's think about housing, does willow's -- zillow is interesting, i go to all the time, they have not such a great

outlook for the spring quarter, a little faster than the market was expecting, the chart says it all, the reactions to their earnings report, down 13% at one point in friday's session. closing down about 4%, the outlook of higher rates from the feds, the higher mortgage rates, should we keep an eye on this tech company? what about hike -- housing supply? emily: let's stay on swallow -- zillow, the cofounder of 75 and sunny, a venture firm based in l.a., i want your view on the big market picture, let's start with the housing market and how all these trends, rising inflation, rising rates, how will it bear down on the housing market? >> what is driving home price appreciation is limited supply.

for most decades starting in the 60's we had 20 million new homes built. in the decade after the financial crisis of 2008 wheelie had 10 million homes built. there is a lot of missing supply, driving the huge uptick in home appreciation. as mortgage rates go up, they still have further to go, clearly homebuyers will have to trade down. most of the data that i've seen around housing still predicts strong housing appreciation, not as high as it was, five to 10% housing appreciation. the stocks underlie this, that is a whole other question, there is a risk off trade. it is hurting coveys leg zillow -- companies like zillow. emily: people trying to get into the market they can they cannot right now if they did not buy something 10 years ago. you are saying prices will still go up.

there is still a lack of supply, there will be competition even though we are seeing forty-year inflation and rates going up and people's portfolios are getting pummeled. >> we are still only at a one month or two month supply of housing. a normal market would have six months of homes for sale. there are not enough homes for sale. we need homebuilder to build more homes if you want to supply demand balance to come back into balance. home prices are still going to keep going up in most major markets. not as quickly as they were, the home markets are still appreciated -- appreciating. emily: how much worse does it get? has the bubble popped? we see this for the next several years? >> it is a bit of a bloodbath out there. investors and viewers can see how it is among public companies, i can give you an insight into private markets and

unfortunately is pretty ugly there as well. the closer you are to being public the harder a go of it one will have. companies that were already in the ipo window hoping to go public this year, that window is shut as funds are being pulled. those companies are not going public anytime soon. late stage growth companies are pulling back, early stage growth companies are necking the rounds done, there is a chill of foot unfortunately. companies across all the venture funded companies are pulling back in many ways. many are tightening headcount, cutting marketing, hunkering down, doing inside rounds because they cannot raise outside rounds for new investors. it is amazing how quickly the weather has turned in just a couple of months. we have gone from an incredibly neblett market to one that is extremely challenged. emily: how long will they hunker down for? >> i had one investment banker

tell me the other day that if you look back over the last 20 years, the ipo window has only ever been closed for six months. we are already in month four of closure. that bodes well for reopening of the ipo market sometime later this year. private companies, venture funded companies assume this year is a write off. every company i am involved with, saying assume you should not be able to raise a venture round this year. i think this could last for quite a while. it is a risk off trade as interest rates take up. public market and private market investors are prioritizing profitability overgrowth. it makes it hard for high-growth companies to raise money. they are all pulling back as a result. sorry to be a bearer of bad news on a friday afternoon. emily: there is one person out there that seem to have no

trouble raising money, elon musk, lining up a large amount of investors to take over twitter, he was talking about his plans to change the company, there are still a lot of unknowns. you are a prolific twitter, what you think about elon musk owning the company? >> i was surprise, i tweeted as much, i am surprise the deal got done, although is not gotten done yet. as a twitter user i'm excited to see what elon's product insight will bring to the product i've used for so long and so many have loved. it will be interesting to watch. i am a little surprised that we had so much financing lined up even though he publicly stated he would not run it like a normal business, not to maximize profit, he is not interested in a financial return. he still convinced others to invest alongside him. it goes to show how much magic and pixie dust elon musk has

associated with him to get people to coinvest even when he has an unconventional investment. i do worry as a twitter user that the company has made great strides to reduce spam, bullying, and a lot of the discussion about how we will restore a -- free speech to twitter sounds good, but with it comes with a lot of spam and bullying. that is a lot of things twitter management has worked hard to induce. -- reduce. i worry about a step back in that regard. best further to go where the greatest tweeters of all time. it will be amazing to watch, they'll be plenty for you to talk about and for me to tweet about as elon takes the company private. emily: what you think about the role of jack dorsey here? a future of decentralized twitter, is that a good idea? >> i am not sure what that means

to be perfectly candid. there is talk about open sourcing the algorithm and providing more transparency. i do not really know what that means for the user, and how it affects the business model. this company has always had, has always been a little dysfunctional at the core level at the management level. it is always had challenges and punched above its wait in terms of media attention and consumer interest. maybe out of the public eye, a be private for a couple of years it will be able to stabilize its leadership team, stabilize its board, focus on the product and come out the other side an improved company and hopefully an improved product. emily: cofounder of zillow and 75 and sunny, thank you. coming up we will wrap the reagan crypto market, -- the

week in crypto market. this is bloomberg. ♪

emily: it is time now for our crypto report bitcoin and other currencies taking a beating along with the rest of tech in this selloff. we have the big picture. what a week. >> it was an especially that week for risk assets, bitcoin in particular. it did not start out so bad, we

rallied on tuesday. on thursday a nearly 9% drop of bitcoin and they took the end of week losses of nearly 6%, it is trading $36,000 now, at one point it hit $40,000 this week, that is a distant memory. a big reason why we saw bitcoin perform so poorly is it trades like a tech stock more than anything else. their 90 day correlation with the nasdaq 100, the strongest level going back to 2010. as you can see in the chart they are, the relationship has strengthened in the past couple of months, the past couple of weeks. now you have tech stocks really under pressure from rising rate. what is interesting in this tech selloff, this crypto selloff, you have ether, a relative haven still down for the week. obviously less than bitcoin. bitcoin is this digital gold, it

is clearly not acting as a haven lately. ether has outperformed just this week, but over the past few years at this point. emily: you are not safe anywhere, are you? i would ask you about nvidia a greeting to pay $5.5 million fine with a settlement with the sec over crypto mining. >> it oils down to allegations that nvidia failed to adequately disclose how much of its revenue comes from crypto minors. they did not make demand that demand from crypto minors made up a significant part of its sales or graphics processing units. nvidia sale -- settled the case, they did not admit wrongdoing, they pay that i $.5 million fine. we -- $5.5 million fine.

we think about a theory him it is moving away from proof of stake, it will no longer require graphics cards, much less intensive, already in december nvidia warned it seed -- saw revenues drop by over 35% from crypto mining compared to previous quarters. it theory him has not moved to this proof of stake mining process yet. already nvidia under pressure, the conversation yesterday at how the movements in the crypto market affects the equity of stocks and the companies involved in the broadly crypto sphere. emily: what we be watching when markets open next week? crypto traits of the weekend. >> -- it trades through the weekend. >> bitcoin is the largest crypto currency out there, the most liquid, the haven, ether is giving a run for its money.

there is an upside and a downside. emily: thank you for wrapping all that up for us. coming up, jeff joins us next we will talk about earnings and how all of this market volatility could impact his company and his views on the road ahead. this is bloomberg. ♪

emily: we saw tech stocks fall for the fifth straight week, marking the sectors worth -- worst week since 2012, i am

joined with jeffrey, they cannot escape the selloff either. i want to get your view on the broader picture of what is happening in the market year. inflation, macroeconomics, uncertainty rising rates, how are you reasoning -- reading all this? >> the way i look at this we are seeing the end of a long your free money that our global economy has been in since september 11 than the financial crisis then covid. financial investors, the whole of government reacting to what the implications are, the first time in 20 years managing inflation versus interest rate. we are not happy about what has been happening with tech stocks or our stock. at the same time a new world we are entering and i think about the fundamental value proposition twillo provides to

our customers. we are growing incredibly fast. we keep our eye on the ball. serving our customers, that is what a lot of come these are doing. emily: you say you are planning to deliver more than 30% organic growth over the next couple of years. does that still happen if we go into a recession? >> we just reconfirmed our guidance that we are going to deliver 30% annual organic growth through 2024. we started that guidance in 2020. we have yet again reconfirmed it and last quarter we intend to be profitable for the fiscal year of 2023. we reconfirmed both of those. the worst case scenario, a macro environment, who knows what could happen in that world, but from every indicator that we saw today gave us every reason to

reconfirmed both those points of guidance this week. emily: talk to us more about how messaging and other news -- new features evolving. you have new customers signing up and sales coming in. >> we have almost 270,000 companies that use twilio to engage customers. more and more companies, businesses are moving online and they are seeing more digital transactions. they meet their customers this digital world. we provide the tools, can indication channels, the data infrastructure to allow companies to know their customers, based on all the data they see about their customers, first party data. take that understanding of that customer and engage those customers. engagement is essentially the fact of personalizing all of your interactions. making every interaction relevant. the act of buying lipid ads to target your -- relevant ads to

target your customers and had direct conversations with their customers. companies that do this well see outsized performance in the revenue. we recently did a survey of a wide variety of companies all around the world. we saw that those companies that invested in customer engagement, on average saw 70% revenue growth nastier. when you -- last year. when you build a strong relationship with your customers, it turns into revenue. emily: i want to ask about the slightly different topic and the league of the draft opinion of the supreme court of row visas -- rove is -- roe v. wade, twilio came out last year opposing the texas law. >> it is a dark day to remove fundamental rights from half of the population.

we think it is a woman's right to choose health care scission for the body. we will support our employees decision to get the health care options they need. we think health care is a personal choice and should be left up to the individual. emily: how do you think of this as an individual, there are certainly customers that do not agree with you. >> is a very tough issue, it is an issue where science has not answer the question of where does life begin a comes a matter of beliefs. religious leaves and personal beliefs. and makes it a very hard issue for leaders like myself to pine on. stop asking me, a man, just because i am a ceo that i think about it. what i can ultimately say is that women should ultimately -- i believe women should

ultimately have the choice to make out there -- health care decisions for the bodies. it is not a decision about where by begins, i do believe that women should have the ability to make those decisions for themselves. emily: i want to ask you another hard issue about free speech, with the pentagon shooting, you called for social media to do a better job of cracking down on hate and misinformation. what you think of twitter being owned by elon musk when his big thing is "free speech." >> in reality, free speech is a nice thing to rally around, in reality when people violate community standards online and off-line you name it, what would you do? if users stop liking the community of a social media, the network will stop using it, there is a very real business impact.

the way i thought about free speech, it is a legal doctrine that governs the government and position of what you can cannot say. it has nothing to do with how private companies drive their terms of service and builder committees. the question is, if some of those engagement, or rules get looser, there is more community breaking type of behavior on twitter, people should vote with their feet. you can go to the metaverse, the snappy verse, the insta verse. there are a lot of options out there. people can and will vote with how the use the service. ultimately it is a business. that will drive allow the decisions that owners will make. emily: that was quite an epic way to and this show -- end this show on a friday afternoon. thank you for waiting -- for

talking about some very thorny issues. that does it for bloomberg technology, wall street week is next, i am emily chang in san francisco have a wonderful weekend. this is bloomberg. ♪

>> award ukraine, a lead to supreme court opinion, a flash crash in europe, what mattered to global wall street is the fed. this week, the beginning of a shift in the tectonic plates of monetary policy. larry summers and neil ferguson on the future of the dollar on a post post cold war. >> it has been extraordinarily strengthened in the past 10 weeks.