♪ >> from the heart of where innovation, money and power collide in silicon valley and beyond, this is bloomberg technology with emily chang. ♪

>> this is bloomberg technology. in the next hour, the selloff continues across the board. tech is in the cross harris, fizzling over the fed's inability too tackle inflation. the dow over 15% in the last five trading days. bitcoin is down more than 50% from its all time high. we talk about where an expert thinks the bottom might be. and the once-hot i.p.o. market. one guest says the traditional i.p.o. process is a scam. let's look at the market's continued selloff to start the week. pandemic sweethearts returning to pre-pandemic levels. extraordinary once again.

tech one of the worst performing sect iraqis. we're getting back to that preview pandemic -- academic level. the index will basket at itself lowest level since august 2022. it includes the feng stocks like amazon and apple for example but you also have tells la in there as well. look at u.s. 10-year example, the yield on that benchmark treasury around 3%. and bitcoin caught up in this riskoff sentment. the correlation between bitcoin and equities broadly is very strong and what in kmart demonstrates, you have that green correlation bar on the bottom panel. one being at a perfect

correlation. we're at about 0 . 7 right now but at periods that changes. the fed can bring inflation under control by delivering a soft landing is our main concern. so looking at the bitcoin picture whole one to watch. two stocks i've been following. rivian. reports that some of the biggest share holders including ford are selling down their stake. then you look at pallateir. really tepid outlook and again, those mega caps. you have to double check the bloomberg and believe that amazon and apple continue to drop that much.

caroline: thank you, ed ludlow. what a great breakdown. kicking things off. victoria green, the chief investment officer and founding partner. what do you make of whether we're going to see capitulation in the market sometime soon? >> we don't think it's going to capitulate yet. the number one advice investment advice right now is don't fight the fed. not all stocks are created qualify. i'm kind of saying out with the gnu and in with the new. the new stocks are not performing like more of the older and valued tech. we want to think you want to be earning companies that give you

earnings now that have a sustainable path forward on how they're going to grow their earnings. i think u.s. a lot of stocks being punished. amazon has changed 33% since march and i think investors are looking at how are you going to grow your earnings? caroline: why is microsoft off more than 4%? are people questioning that growth as well or is it the baby out with the bath water? >> a horrible way to put it but baby in the bath water, absolutely. there's nowhere to hide. i don'think the's anything wrong with microsoft. they've had great earnings and obviously have good potential but i think they're getting dragged down with everyone else. you're seeing this correlation with bitcoin, tech stocks and you're seeing this correlation live up to it.

you can't see one move without the other one and you're not seeing bitcoin be a hedge at all. you're seeing it develop more and more into a tradable stock type investment that has more earnings. caroline: when you're a achieve investment officer, are you looking at either this is a -- moment or when everyone else is fearful, be greedy or is there some sort of bottom, clearing of the deck by the freshman reserve. some sort of peak ennation before you say now is a safe moment to allocate cash? >> i think it's a billionth early. we haven't seen capitulation yet. the fed is not going to rescue us. but we're holding tight. week looking more at value. i think with tech there are some selective names. you look at semis that have sold

5, cybersecurities. it doesn't matter who you are, you're going down. i think it's early to come in and if you look at the middle ground, i think that means there's more to fall. there's nothing to rescue usle with soon. caroline: what is the sino capitulation for you? >> we need to find some footing on the technical side and have we we'ved -- reached peek hawk irk side? maybe in summer we could see it moving around. i don't see us avoiding recession. i feel more pain in the cards, especially for this sector. -- sector. caroline: grinder was announced it was going to go back at 2.1 million evaluation. all these banks are back wag from being exposed to special

purpose acquisition companies. they're worried about the regulation effect. worried about being in some way affected by it. do you see the market still coming to the market? >> i think stocks work when they have a target in mind and they can apply it. it's kind of a back door i.p.o. i think they're trying to limit the back capital on hopes and dreams and not really having a september target and you saw a lot of banks fail and the clients got rich, and banks got rich. similar to other i.p.o.'s, i think it's not going to be dead but i think it's going to go back to doing what it was supposed to do, which was bring a company to market with a little bit of a back door but then it became open season and everyone was raising all this none to eventually go buy something and they're aren't -- there aren't enough targets. with buffaloable and everything else, this is a crowded space

but it's a viable product. i think they're banking of the the fact that it didn't really have a target and this person knows what they're doing, they're going to be able to fund this company for me and eventually not finding what they wanted. caroline: we're very fearful of the fed, of innation, of close to home things. of course, this is a geopolitical storm. inflation worldwide and also the story of a slowdown, particularly in china. how much are you looking at it globally? >> the supply chain issue? china is going to affect us greatly. we barely got out of covid and kind of duct taped this recovery. we weren't really on that solid a footing, even though the market had tremendous surges until the march lows.

we are still very viable to that supply chain. maybe we have other options that people are sitting on more inventory. you can't build a factory and get it going in a year. are our smile chains better? no. pressure coming from the war in ukraine. you're cutting out -- russia out of the market. all those ships are backed up at the shanghai important, similar to what was happening in l.a. the world is getting smaller and when the world get smaller, we cut out russia. china is shutting down a little bit. how are you going to find your growth right now if you have less trading partners and you're paying more? i think there's a lot of pain still to be had. i'm not audiotape -- uber bear. i think we can find footing. i don't think this is an 2008 but you have to look at your

risks holding up. are their sustainable? and then you look at your risks, it takes one or two bad earnings for facebook or next netflix and sudden will i they lose 20% or 30% of their value. caroline: victoria, could talk to you all day. thank you very much. coming up, more on the tech selloff and what that means for the i.p.o. landscape. we'll discuss with mobile analytics company amplitude. that's next. this is bloomberg ♪

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>> we're seeing the end of a long era of free money that our economy and global economy has been in going all the way back to september 11. >> it's a bit of a bloodbath. companies that were in the i.p.o. window hoping to go public, that window is shut. there's a real venture chill afoot unfortunately. >> it's certainly a tough market but the fundamentals for doordash are incredibly strong. >> i thing about the fundamental proposition provided to our customers. we keep our eye on the ball, which is serving our customers. caroline: a few tech exec

activities we've been having across the bloomberg technology show in the last week or so. we want to talk with another c.e.o., amp fullily tuesday. spens effects r is with us. of course, i'm sure you're going to say, look, eye on the prize, keep focused on the business. what do you do when your investors must be shell-shocked? >> we're really excited about being out in the public markets. one of the number one things i had to emphasize with the team is that short-term market volatility is not in your control. you can still delivery everything you commit to as a company. we had one of our most phenomenal growth years last year,-up over 60% year of year, yet you can still get hit with things out of your control.

we're seeing that happen broadly. it really tests that of what cc.e.o.'s and what teams are in it for the long term vs. short. caroline: i'm interested in that when you've had an exit moment. of course people have a lot of money exposed to the share price now. how do you ensure that people remain as focused on the long term as you are? >> we brought the entire company through a whole exercise where we simulated a stock price for the company and had it go way up and then we had it go wail down and then we had it come back to the middle and the key thing for everyone to understand and take away was that even if they delivered the results, achieved their goals, were successful as a company that the stock price couch tremendous volatility and the only think i -- thing that i

can control is whether or not we hit our goals, ship our products, make customers happy. if you focus on that. that will result in success in the long time temple. sales force started in the early 2000's, facebook started then as well. airbnb started during the financial crisis of 2008. now is one of the best times to build and free throw a large tech company. this is where you see a lot of noise being removed from the market where companies who are not as good will have to pull back. where money is not as available and as free as it was in the past. the robust companies will be able to weather the next few years. caroline: the robustness of your business is also dictated by

demand. do you think the service, the confidence is there for people to be buying your services? >> oh, yeah, that's why we're very proud of the q.1 results we had. a lot of companies dame on for the first time. companies like barnes and noble. pay pam is a big expansion growth in quarter. we had square, i.b.m., the weather channel. tons and tons of companiesout there are willing to make investments with amly dude and that goes back to the rising power of the product organization. what we do is help companies build tata driven products so what adobe is for marketing and sales forces for sales team, amplitude is for product teams so all the sales around people driving products through growth. people needing data through

products. the danger tall wave. all of those points are still true today. caroline: what is it that continues to programs be a limitation to your growth? is it talent? i hear about how everyone is fighting fiercely at the moment and how they're having to pay up with inflation there. >> yeah, talent is always a challenge for every company and it's no different here. before we went out into the public markets, people asked me what the biggest risk was and i kept going back to talent. we're really confident in the market opportunity here. $37 billion of total adjustable market for what we do. we have a best in class product and have a number of awards that continue to come out selecting amplitude as the number one platform in the space.

in this accessory environment, in a lot of ways attendant -- talent because -- becomes more accessible and cheaper. we have a strong bluest here at amplitude. caroline: thank you so much for making the time for us. meanwhile, opening day for meta verse of a physical store. we'll talk next about what they're hoping to achieve and why they chose that location. this is bloomberg.

♪ caroline: me -- meta, parent company of facebook is opening its first physical store. it hopes to give consumers a chance to try out the v.a., the a.r. hardware. the company's official spoke

with bloomberg. >> why not san francisco or new york city or london? >> great question. it's the headquarters of -- and we felt that it was important to have the customer experience that we're creating very close to when we're creating a product. we want that to be centered on how we continue to build innovation in the future. we felt this was the perfect place to put our first experience. >> i've been in a few instance where you see a store in a pop-up form. would who -- could you guys look at pop-uppings maybe? temporary pop-ups in different stills around the world? >> i think what we will learn from this experience is where we should be and the kind of experiences we should create. a lot of the experiences we build in the store are unique. it's the first time a lot of these existed anywhere and as we

learn more, we'll decide how and where those should show up around the world. >> is this a luxury experience? do you want it to be a00ry experience? >> we actually want it to be an approachable experience and want people to feel comfortable asking questions. we want customers to be able to pick things up and try them out and we have associates that can answer questions. >> what is it like going into the snore what am i going to touch, feel, experience while i'm there? >> a couple of things. obviously we have our products here where you can try glasses on that offer the ability to take pictures in video, which i personally appreciated, having to attend a wedding last week, where i was able actually to be at the wedding while sharing it with other people. we have portal, which i'm speaking to you on today.

that allows you to talk not only at work but with family. obviously probably the most exciting thing that people see when they walk into the store is the mixed reality screen with quest 2. it allows them to not just try to product but allows everyone with them to see how they're experiencing the game as well and that allows it to be one that is shared with many even know it's experienced by few. >> are you open to the idea that the store experiment might not work? that actually the best wail for meta to grow its hard wear virtual reality is online? >> the store is not an experiment. it's a way for us to keep building and make sure it stays at the center of what people are experiencing with our hardware. >> and you're the head of melta

store. so you want to open more stores and where? >> i think as we learn more about how people are experience which this, we'll be able to communicate what that means later. right now we're forecasted on what we are creating and is experiences people have here. >> martin gilliard talking to our ed ludlow. technologies plunging on monday. the software maker reporting plunging losses. it is known for its international sponsors to the pandemic for the united states and its allies. >> 20 u.s. internet providers will offer high-speed connections at essentially low -- no cost to millions of low-income households. about 48 million are actually

eligible for the program, according to the white house. coming up, we'll take a look at the chinese economy. it's warning of a grave employment problem in shanghai. ♪

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emily: welcome back to bloomberg technology. get back to the markets, we have been so focused on the past three days and of course shares a rivian, the biggest drop on record after the lock up on his shares expired sunday night. at ludlow is here with the details. what happened when the lockout expired? >> they had this huge ipo in november. as often the case, we have an ipo some of the biggest investors, it insiders,

employees are restricted with what you can do with your shares initially. the lockup vent that 720 million shares of rivian became available for public trading. they could be sold. we had reports that fold had -- ford had sold a block of 8 million shares at a discount. it is not good for sentiment when when your biggest shareholders as trade when lockout lifts. when look at has the shares have performed since the post ipo peak of $172 a share. all things considered, when you -- it went as badly as it possibly could have gone. >> badly as it possibly could've gone, meanwhile there is an investor not selling. >> he is a big saudi family

conglomerate, the third biggest shareholder in rivian, and amazon, another big investor in rivian, they said they have no intention of selling their stakes. they gave a very public backing of rivian management. we did not get the same explicit backing from rivian -- amazon. they did not will out shall -- selling shares of the later date. throughout the day monday there is a lot of data to suggest that retail investors are looking at rivian, they were oversubscribed at the ipo, the retail investors missed out, there could be upward trajectory from here. a really rough day here. >> a rough day for many, we thank you so much. less talk about more that roughness in the tech selloff happening now. what does that public market spillover effect mean for private markets? early stage silicon valley

venture capitalist funds, not unaware of what is happening in the public markets and the rates in those public markets, what you think, currently let's talk stocks first, how much do you see the ripple effect affecting valuations in the private market? >> i think, as an investor that really focuses on early stage infrastructure software, the market is brutal. it will certainly impact a lot of the devaluation in the private market. having said that, in web three in web two, infrastructure software has so much more to be built. taking a look at early stage, think valuation is not of a particular impact to us yet. at the same time i am still really bullish on the companies we invested in. hello bit more on the crypto side -- a little bit more on the

crypto side, early stages, still missing a lot of the eldon blocks -- building blocks. i am excited by the storage for web three, there is still much more to be built. we need to hang tight and not get too scared what is going on. >> let's talk about the crypto market because you mentioned to companies, basing themselves on web three in the future thereof. when you see the biggest cryptocurrency crip -- bitcoin being hammered so much, the vc money that has been put in these businesses and now the pullback at the risk tolerance, does that mean people are going to be worrying about the rest of the crypto space? >> i think crypto and the web3 spaces not purely about bitcoin prices and token prices. it is the technology side of things. in many cases, they are building

the aws and the web three for structure. the backup recovery communication storage is still not there yet. we look at the crypto market, when you look at purely changes it is a little bit crazy. three years ago or even five years ago when i first got into it, bitcoin prices were 35 -- were $3000, today this 10x. today it is over 1.5 trillion, the market is not going away, but we will definitely see a ripple effect and was going on. i am super bullish, there is so much more in the fundamental of technology that is not about crazy trading. >> it is about founders, when you mentor -- mentioned solano, they have been on the podcaster

bloomberg's. a healthy dose of cynicism, when it comes to terms of vc money and yield farming, what has been built in terms of the unknowns of this world. do you think this is a healthy rebalancing of the market? or do you think we will stop seeing the momentum trades in crypto? >> i spoke with emily in december with what will happen in 2022i predicted that crypto prices usually drop in the beginning of the year. it certainly has. i think for us i we are really thankful that we invested early on in between 19. the key thing -- 2019, the key thing is that we do not do crazy things. investors is no longer just about investing, it is about helping our founders to build to

make sure we are compliant, operating wise we are here to help them. for many, as you just talked about rivian with the will lockup, the selloff after the six-month lockup, many of our companies, i've been holding since 2018i will still hold, it is all part of being a long-term and not being short-term, at the end of the day i am not a hedge fund. it is about long-term holding, supporting the ecosystem. >> the ecosystem need to be supported with speculation as well -- with regulatory as well. the future of options and derivatives and intermediation's within that, i spoke to the new chairman of the atf sees, how you feel regulations going to grip with thes -- this ecosystem? >> the executive order that

basically indicated, that president biden really wanted to support, regulate is a good sign for the ecosystem long-term. particularly with the ftx the token is not available for the u.s. market, they made a conscious choice to move the headquarters to the bahamas, that i read a week ago with a conference it was very successful. a very clear line with what is being offered to the u.s. customers versus the rest of the world is very different. coinbase, which is already gone public, taking a huge effort that we all regulate, compliant, this is a good thing for the crypto market long-term. we raise capital and are here to support all of these initiatives. >> may sketch empathy, thank you very much indeed.

talking about bitcoin, slumping last seen at a level of july 2021. this is bloomberg. ♪

>> time for our crypto report with bended -- with bitcoin extending losses dropping below 30,000 on monday this is the first time it has been this low since july of 2021. its decline from a record high of over for percent, we are here with the brutal selling pressure. >> you take a look over here, we

talk about this one year merry-go-round that crypto is gone through and bitcoin being the brunt of that. we have gone more than 10% lower the last couple of days. now getting a little bit of left be -- above $31,000, the real worry that they could fall below if the nasdaq continues to decline. it is not just bitcoin we want to talk about. although there is a lot of a mentor meant that downward pressure over the last couple of days. less talk about other cryptocurrencies, even stable coins, a lot of the worry with it being unpacked to the dollar, i want to pull up this tweet. you see it down more than 4%, the worry is that the downward move of a stable coin like that -- >> caused by bitcoin.

>> backed by bitcoin, more sellings be done to peg that stable coin to the dollar. there is a lot of worry about how one as it will correlate to the other asset. let's see what he has about the selling pressure. >> we were 40,000 just a week ago, so the pace of this move has been severe. correlated with the risk off you see in all assets like the rise of the dollar. i still think 30,000 should hold, we will see have 12,000 holds the nasdaq and we bounce in the next two days. then you will see that coin $30,000 will hold. if the nasdaq falls we head towards 11,000 there is a shot that $30,000 goes. getting away from price, which is hard to do on a day when the market is down 10%, it is interesting if you look back at all the adoption is happened

this year. venture funds have put $14 billion into the ecosystem. this is an asset class, lock saying -- lock chain agile as class, bitcoin getting tremendous interest. while the short-term outlook is painful, as the fed adjust from free money to the normalized conditions, my medium turn conviction has been wavered. i do see this as a very exciting asset class with a lot of momentum. >> in the correlation, the main hope, prayer, saying that the institution investors going into crypto this is a non-correlated asset, it is a very correlated because of institutional investors come in and they have a sell when the nasdaq was down. >> had less correlation and

there was free money forever, the correlation increased dramatically -- and made all assets, you look at the correlation of fine wines are baseball cards or any collectible for the nasdaq to assets. we are unwinding this era of free money. is not surprising to me, that bitcoin a hedge against free money is being sold off. i do think those correlations will lessen when we find some stability in the market. right now if you are an investor you have 100 fires to put out. did you overcommit to venture? do you have enough liquidity to pay your private equity commitments? i used to be in risk parity and that is not work at all anymore. very little -- few people want to put on new risk in this time of tumult. once he tumult stops, i think that is the word, once the chaos

stops, i think you will see the allocators that have been doing all their homework -- i went around the country to a bunch of conferences. i am widely convicted that there is infrastructure being put in place to put lots of capital into the space. again, it is surviving this unwind that investors have to manage. >> we talk about the unwind you seem to be talking about a lot of people who saw the opportunity here, they were not early adopters, there were not the crypto faithful if you will, not the traditional sense. for those crypto faithful out there, do they look at this type of market you add to positions, buying to the dip, or do you stay the course and wait for whatever shakeout is happening to end? >> for the guys have been in crypto for a lot longer, this is par for the course. for people that manage institutional money or lots of money this is unbelievably

painful. to use the same kind of risk analysis use we trade other assets. i would tell you that the new institutional players that are coming in are coming in with a very long-term focus. you can put lack rock and blackstone, and citadel, and apollo into the bucket. some of the biggest names in investing and they are getting in. they are working on infrastructure to great institutional frameworks to bring their clients and. i do not think this asset class is going away because they had a fit percent selloff. >> your clients have been asking you about the recession possibilities and how you prepare for that, how do you prepare? >> i think we will go into a recession, in some way so be good for crypto, it will get interest rates calm and down again, i'm sure we'll have crypto adoption from investors. we have already seen it from

companies. asset classes -- prices always get ahead of the actual building of where a company is. tesla night selling cars and they had a decent arctic cat -- market cap. you have to keep the story up until you build product that generates the revenue. that is the process that is happening in crypto. what crypto needs is stability in the non-crypto markets. at that point you will see stability in crypto and fast adoption. >> that of course was galaxy investment partners -- galaxy digital. you see that crypto decline actually exacerbated a lot more in those firms exposed to cryptocurrencies. >> talk about exacerbating, do you think a bitcoin backed stable coin means you have more selling pressure on people on that treasury?

will this be an ugly feedback loop? >> that is the concern that will -- there will be ripple effects across define markets, how long does it have to last for them to start selling bitcoin into that decline? >> always so smart when it comes to crypto, we thank you for that. continue coverage in the market meltdown. investors worry about the cell ability and survivability to curb inflation without going into -- this is bloomberg. ♪

caroline: let's get back to the selloff we have seen across every asset class.

stocks tumbling to a new 13 month low, my colleague joining us to discuss the tech side of the nasdaq, the nasdaq 100 in correction low -- mode. how much further do we fall before capitulation? >> you do not have to go very far deliver superlative's for the nasdaq? a 25% drop year to date, the worst start to a year on record by a lot. the next closest was 1973 that was down 17%. not only that, my friend luke, he said, this is the biggest non-recessionary big -- six-month contraction in a non-recessionary time. this repricing is very vicious and very rapid. we think of the last two years this is starting to make sense. when you look from between 19 to the end of 2021, the nasdaq 100

was annualized 30% for three years, that is up a lot. when you look at the pullback it makes sense from the perspective of the fed hiking rates. we are tightening financial conditions. mike, why didn't you tell us about this at the start of the year? using valuations is a incredibly hard tool. historically difficult. >> why is -- i can understand the thesis, get out of companies that do not have a ian and pe, what about companies that really do, like apple, amazon, microsoft why they being thrown out? >> those of the largest holders and the ones we watched the most, if those crack it portends a very bad market. when you look at the big names, other things is looking at, most of the big drawdowns, facebook, apple, nvidia. their biggest drawdowns were in

2018 and between 19, not during covid. they were rate hikes, it is very similar, the fed takes out the system. look at the high flyers, all of their covert expansion is gone. earnings are doing ok. all these beds driven multiple compressions, where will he go to? i look at nvidia and they at the same -- i do not know what that says. i don't know if all three of those are too extensive, but clorox, adobe, nvidia have the same right now. caroline: are there any technical lines, any assets he are looking at? it was interesting, we saw commodities get caught up in the selling, bonds becoming behaving trade. what are you looking for in catching up where it goes? >> >> i was watching the 5-year

note when i woke up, it would be proxy for the terminal rate comes up to 310 and the yield started plummeting, i like that. maybe that is a little bit of a flight to safety. the oil traders down, maybe people are starting to sell things are doing well this year. that is important, capitulate toward to me, that 5-year note, i want to know that the rates are three or less, i need that stabilize. i look at -- i equal wait them to take out amazon and tesla, that is what my friend calls when the best treasuries in the world. risk on, risk off. it has not yet, discretionary over staples equal wait is a good proxy for risk. i need that the find a bottom. caroline: love how you push us, thank you. that does it for this edition of "bloomberg technology." we will continue to follow this

ongoing selloff that has impact across the board. he has a new book, built, and orthodox god to making things worth making -- guide to making things worth making. this is bloomberg. ♪

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>> a very good morning, welcome to "bloomberg daybreak: australia." we are counting down to asia's market -- major market open. the top stories this hour. >> u.s. stocks sank to a 13 month low on the concerns that the fed will struggle to balance the inflation and then session -- recession risks. >>