>> from the heart of where innovation, money and power collide, and beyond, this is bloomberg technology with emily chang. i am caroline hot in new york,

in for emily chang and this is bloomberg technology. the selloff continues across here. the nasdaq 100 down 10% in the last three training days. crypto not spared in this selloff. bitcoin slipping down more than 50% from its all-time high. my conversation with kelly digital. and look out below. how the slide in equities is affecting the once hot ipo market. we will get to all of that in a moment but first, let's get a look at the continued equity selloff to start the week. pandemic sweethearts seeing a significant slide. and though the joins us. extraordinary once again. >> it is a broad-based selloff. tech is one of the worst performing sectors. 100 is an example.

down to the lowest level. we are getting back to that pre-pandemic. that will basket the lowest level since august of 2020. the likes of metta, alphabet and you have u.s. shares and chinese companies. that as we saw opal back in yields. the yield on that benchmark treasury around 3%. it was as high as 3.2% earlier. bitcoin caught up in this risk of sentiment we are seeing. down below 32,000. look at the correlation between bitcoin and equities broadly. it is very strong. this chart demonstrates that green correlation bar on that panel. we are at about 0.7 right now.

that correlation just strengthens and flies in the face of everything we thought about with bitcoin. our main concern is that the fed can bring inflation under control without causing the session, by delivering a soft landing. we are looking at the bigger picture here as a whole. two stocks i have been tracking throughout monday's session, ready and is down. a lock up on the shares following the november ipo. some of the biggest shareholders in fort are selling down there stake. i really tepid earnings outlook. and then those mega caps. you have to double check and make sure that amazon and apple look at that bus.

conversely thank you, what a great breakdown -- what a great breakdown. kicking things -- kicking things off, victoria green. perfect to have your voice. what do you make of whether we are going to see capitulation in the markets? >> i think the fed is going up. they are going to tighten. not all stocks are created equal right now. all of the new stuff, the pandemic darlings are not really performing the same as some of the old tech. your cisco, broad comms, value tech. we think you want to be owning companies giving you the earnings now.

not just on a wing and a prayer and what they hope will happen. i think you see a lot of these stocks getting punished. their company prince billions upon billions of cash but i think investors are looking for where we will find growth. >> why is microsoft -- why is microsoft off more than 4%? is this everything -- the baby goes out with the bathwater? >> baby and bathwater, absolutely. there is never to hide right now. it is very minimal. especially in the tech center. microsoft had great earnings. they had good potential and i think they are getting dragged down with everyone else. you are seeing this correlation with bitcoin and tech stocks. we actually deemed that the holy trinity.

you are seeing it develop into a tradable stock type investment that has no earnings. i think we are finding out more about what it is. >> are you looking at this? some sort of bottom, some sort of clearing the deck? some sort of sign of the inflation? >> we are not quite buyers of the tech sector. the fed will not rescue us here. i think with tech, there are some semi's that sold off.

i think it is early to come in. there is nothing to rescue us. >> what is the sign of capitulation for you? >> we need to find somebody on the technical side and have we reached peacock is fed? i don't think so. i am seeing a bit more pain, especially for that sector. >> it was announced by grinder it will go public through a tigress back. i have seen headline after headline of bank of america, goldman.

claes and i think it worse when they have a targeted mind. >> i think what they are doing this. we are not really having a set target. i think it really made people back off. this will bring the company in with a bit of a back door. everybody was just amazing all of this money to go buy something. there are not enough targets. you have to wonder with bumble and everything else. this is a crowded space but grinder has a pretty decent niche in their market.

it is a valuable product. because there was a global element of this. >> we look around and you see what is happening in shanghai and the zero covered policies in china. we are still very vulnerable.

moving a factory and shorting the supply chain or maybe we have some other options or people sitting on more inventory, we can build a factory and get it going in a year. are the supply chains better? you have pressure coming from the war in ukraine. you have china shutting down. shanghai is shutting down. this is very reminiscent of what is happening outside of the court in los angeles. the world is getting smaller. when the rug gets mother, we cut out of russia. china is shutting down a little bit. how will you find your growth right now if we have less trading partners? i think there was a lot of pain still to be had. i don't think this is here. i think we need to be very aware of what we on. are they sustainable? then you look at netflix and he

realized that it takes one or two earnings for a facebook or a netflix and then suddenly they lose 20% of their value. >> victoria green, i could talk all afternoon to you. coming up, more on the tech sellout. what it means for the ipo landscape. we were just talking about it with victoria. we will discuss it with amplitude.

>> we are seeing the end of a long era of free money the global economy has been in. >> it is a bit of a bloodbath out there.

companies that were already in the ipo window, hoping to go public, that window is shown. late stage companies are pulling back. there is a real venture chill afoot unfortunately. that is what a lot of companies are doing during this time. quite a few tech executives there that we have been having across the technology in the last week or so, reacting to the tech sellout. the company joins the public market. we are going to the height of a

$10 billion market cap. i am sure you will say i on the prize, keep focused on the business but what do you do when you're investors are shellshocked? >> we delivered a phenomenal q1 results. we are excited about being out in the public markets. the number one thing i had to emphasize with the team is short-term market volatility is not in your control. you could grow the business. we have the most phenomenal growth here. you can still get hit in the public markets because of things outside of your control. we are seen that happen very broadly across the sector. it tests what teams are in it for the long-term versus the short. >> well said. i am interested in how your

talent remains in the long-term. of course, people got a lot of money exposed to the share price now. how do you ensure that people remain focused on the long-term as you are? >> we actually pretended we were public before we went out into the markets where we simulated the stock price and we had ago we up and then way down and then we hadn't come back to the middle. the key thing for everyone to understand and take away is even if they delivered the results and even if they achieved their goal or even if they were s -- if they were successful as a company, the stock price could have tremendous volatility. the only thing we can control is whether we hit our goals, whether we make customers happy and stay focused on that. some of the best tech companies got started during downturns and

recessions. lots of great companies like airbnb started during the financial crisis in 2008. now is one of the best times to build and grow a large tech company. this is where you see a lot of noise. companies not as good have to go through layoffs. they had to pull back their investment. we will have robust durable business as weather the next few years. that is something we have always done very well here in amplitude. >> this is also predetermined by demand. do you feel like the sentiment is there? confidence is there?

quick paypal was a big expansion growth. we had square, okcupid, the weather channel. tons and tons of companies willing to make investments with amplitude and that goes back to the rising power of the product. what we do at amplitude is we help companies build data-driven products. all of those data points are still very much ringing true today. >> what is it that continues to be a limitation to your growth? i feel like everyone is talking about how fiercely everyone is

fighting for it. is that something you feel confident in? >> yes. this is always a challenge for every company. that is my number one concern. people used to ask me what you think the biggest risk to amplitude is. i kept going back to talent. $37 billion of this for what we do, we are really confident that we have a best in class product. we wanted to cement amplitude as the number one product. it really comes down to our ability to execute on that. i think in the processing environment, a lot of this talent becomes cheaper. because there are less opportunities out there.

>> thank you for making the time for us today. the meta-verse will have a physical store. what they are helping to achieve. why they chose that location. this is bloomberg. ♪

>> metta, the parent company of facebook is opening his first physical store. they will try out the vr and ar hardware. they spoke to bloomberg's ed ludlow. >> what we learned from the store would definitely go into how we build our product and where we continue to sell it.

>> why not san francisco or new york city or lunch? >> great question. this is the headquarters. we thought it was important to have the customer expansion we were creating very closely. we want that to be on how we continue to build innovation of the future. this bill at the perfect place to put our very first experience. >> i have been in a few different situations where you see a product and pop-up format. you are walking, that is in some kind of outlook area. >> a lot of the experiences that we built our unique. this is the first time they have existed anywhere. as we learn more, we will see how those show up around the

world. >> is this a luxury experience? >> we want it to be an approachable experience. we want people to feel comfortable asking questions. we built as a people can test out a product. we have it so that you can ask questions. it can be so much more than what people read about. >> what am i going to touch, feel and experience? >> there are couple of things. you can take pictures and video. i attended a video -- a wedding last week. we have a portal that allows you to have these conversations not only just forward but with family. i think about when my son had an

opportunity to read stories to his grandmother every night. this is the most exciting thing. the mixed reality screen that allows them to actually not just try the product but allow everyone was with them to see how they are experiencing the game as well. that experience is here. -- it is the best way for meta-to reach the virtual reality reach online? this is people experiencing our hardware. >> you are the head of meta-store. you want to open more and where?

>> as we learn more about how people are experiencing this, we will be able to communicate what that means later. right now we are focused on what we are creating in the experiences people will have here. >> a few other stories we continue to watch. the software maker reported mounting losses. and a disappointing sales for cost. they are also known for their cofounders. 20 u.s. internet providers will offer high-speed connection at no cost to --

coming up, we will take a look at the chinese economy. this as they are warning of a grave employment situation in shanghai, tightening those quarantine measures. from new york, this is bloomberg. ♪

xfinity mobile runs on america's most reliable 5g network, but for up to half the price of verizon, so you have more money for more stuff. this phone? fewer groceries. this phone? more groceries! this phone? fewer concert tickets. this phone? more concert tickets. and not just for my shows. get $400 off an eligible samsung device with xfinity mobile. take the savings challenge at xfinitymobile.com/mysavings or visit your xfinity store and talk to our switch squad today.

>> welcome back to bloomberg technology. i am carolyn hyde in new york. get back to the markets. the ev maker so the biggest drop on record after a lockup on his shares. ed ludlow is here to remind us what happened with the lockup expiring. >> some of the biggest investors

are restricted. they suddenly became available for public trading. we had news that ford which is one of the biggest ribbon investors had sold a block of 8 million shares at a discount. it is just not good for sentiment. you are numb -- now down below. all things considered, it went as badly as it possibly could have gone. course there is one person. course this is a big saudi family conglomerate. they are the third shareholder.

they gave a very public background -- backing of the management. but they did not have the same explicit backing. amazon said they were committed to working with vivian but they did not comment on selling the shares at a later date. there is a lot of psychology around it. they were oversubscribed in the ipo. a lot of retail investors missed out. >> let's talk about this.

this is a venture capital fund. >> this is focusing on early-stage infrastructure software. having said that, i think this infrastructure software, there is so much more to be built. i am still really bullish on the company we have invested in. ftx is still private.

i am so bullish on what they are building. early-stage, they are missing a lot of building blocks. i am excited about bundlers. that is the storage for web three. there is so much more to be built. we need to just hang tight and not get too scared with what is going on. >> let's talk about the crypto market. they are basing themselves on web three. when you see them getting hammered so much and the spillover effects of the money that has been placed into these sorts of businesses and now a pullback and risk tolerance, does that mean the people will be worrying about the rest of the crypto space? >> i think this is not about bitcoin prices. it is about the technology side of things. they are basically building aws

and of the infrastructure. there is still backup, recovery, communication storage. bitcoin prices were $3000. this is not going away but we will definitely see some ripple effects of what is going on. i am still super bullish that there are so many more things in the fundamentals for the technology. that is not about crazy trading. it is about founders. >> you mentioned ftx.

in terms of vc money and yield farming and what has been built in terms of all of this world. cracks are predicted that the crypto prices usually dropped at the beginning of the year. this is making sure that we don't do crazy things. it is no longer just about investing. it is about helping our founders to build and making sure we are

compliant. making sure that we are here to help them. many of our companies i have been holding since 2018 i will still hold. this is really about long-term holdings supporting the ecosystem. >> this is the future of options or derivatives and intermediation within that. i spoke to the new chairman a little bit earlier. how do you feel regulation is getting through this new system? >> i think coming from the white house about two or three months ago, having the order to

indicate president biden really wanted to support this is a good find for the ecosystem long-term. the ftt token is not available for u.s. market. i think they made a really conscious choice to move headquarters to the bahamas. i wanted that a few weeks ago. this is amazing. there are lines being drawn. what is being offered to the u.s. customers versus the rest of the world is very different. going based which has already gone public is making a huge effort to make sure we all regulate ky c compliance. this is a really good thing for the crypto market long-term. >> bitcoin slumping at a level

that was last seen in july of 2021. this is bloomberg. ♪

>> time for a crypto report. we have bitcoin extending losses. dropping below almost 30,000 at one point. this is the first time it has gone this low since back in july of 2021.

they could blow -- fall below 30,000. let's talk about other cryptocurrencies. even stable coins, a lot of worry that you see over there. this is the worry that they are down. the worry that a downward move in a stable coin like that is backed by bitcoin. the most important part there is

there is more selling that needs to be done to peg that stable coin to the dollar. there is a lot of worry here about how one actual coordinate to another asset. let's look at what democrats had to say about this. >> we were at 40,000 just a week ago. the pace of this move has been severe. coordinated with the risk off you are seeing. the rise of the dollar. it is interesting if you look back at all of this.

while the short-term outlook is painful, it will be volatile with the rest of the assets. that can adjust. the medium-term condition has not wavered. this is a very exciting as a class. >> i think that was the main hope. this is a non-correlated asset. more institutional players have come in and they are having to sell. >> there was less correlation, there was free money forever.

we are unwinding this era of free money. i do think those correlations will break down or will lessen the stability in the market. if you are an investor, you overcommit to venture. you have enough liquidity to private debts to pay your private equity. once the tumult stops, the chaos

stops, i think you will see the alligators who have done all of their homework. i just went around the country to a lot of conferences. i am wide convicted that there is a structure being put in place, bringing lots of capital to the space. it is surviving this unwind that investors have to manage. >> when you talk about the unwind, you seem to be talking about people who saw the opportunities here. there were not exactly the crypto faithful in the traditional sense. for those out here, do they look at this type of market and say you buy into this? or do you just stay the course and wait for whatever shakedown is happening at the end? >> for the guys who have been in crypto for much longer than me, this is par for the course. you use the same type of risk

analysis you do when you are trading other assets. i would tell you that the new institutional players coming in are coming in with a very long-term focus. you can put black rock and blackstone and citadel and apollo into the bucket. those are the four biggest names in investing and they are getting it. they are working on infrastructure and trying to help create institutional frameworks to help their clients. i don't think this asset class is going away. >> your analysts have been asking about the recession probability and how you fare for that. >> i think we will go into a recession. in some ways that will be good for crypto because we will get interest rates, and down again. i am sure we will have crypto adoption from investors. asset classes always get ahead

of where the actual building of the company is. they had a decent market cap. you have to keep the story up until you can build product and then generate the revenue. half the process is happening in crypto. reptile needs stability in the non-crypto markets. you will see stability and crypto and fast adoption. >> that was mike. >> talk to us about exacerbating. do you think this alludes to the fact that a bitcoin that stable coin means you will have more pressure on that treasury?

>> there could be ripple effects. how much decoupling does there have to be? >> we thank you for that. coming up, continue coverage in the market meltdown. the investors will bring about the cell ability to cover inflation without throwing the economy into a recession. this is bloomberg. ♪

>> let's get back to the selloff.

that is the tech side of this in particular. how much further do we fall before capitulation? >> you don't have to go very far to look for superlatives. this is the worst start to the year on record by a lot. the next focus is 1973. not only that but he says this is the biggest non-recessionary. this repressing has been very vicious and very rapid. when you think about the last few years, say from 2019 to the end of 2021, the nasdaq has dropped. that is a lot.

when you look at this pullback, it makes sense from the perspective of the fed. we are trying to take steam out of the markets. mike, tell us about the start of this year. >> i can only understand the thesis. what about companies that really do? where are they being thrown out? >> we think those are the largest holders. that portends a really bad market. if you look at these were the big names, one of the things i was looking at today is most of the big drawdowns like facebook, apple and nvidia, they are not doing covid.

they were about rate hikes. it is very similar. this takes these multiples out of the system. earnings are actually doing ok. i don't know what that says. >> are there any assets you are looking at? we saw bonds become eventuated. where should this go? because i thought that was important. i viewed that as a good proxy.

the yield started plummeting down to 295. i like that. that might be a little flight to safety which we have not seen that. i look at two things. i want to know the terminal baits. i need that stabilized. i need them to take out amazon. this is one of the best strategists in the world. i am watching that. i need to make although. >> we thank you. " that does it for this edition of uber technology but we will continue to follow this ongoing selloff.

we are talking crypto. this is bloomberg. ♪

xfinity mobile runs on america's most reliable

5g network, but for up to half the price of verizon so you have more money for more stuff. this phone? fewer groceries. this phone? more groceries! this phone? fewer concert tickets. this phone? more concert tickets. and not just for my shows. switch to xfinity mobile for half the price of verizon. new and existing customers get amazing value with our everyday pricing. switch today.

manus: this is "bloomberg daybreak: middle east." the global stock selloff deepens amid concerns over a darkening outlook. goldman sachs