>> in silicon valley and beyond, this is "bloomberg technology" with emily chang. emily: this is "bloomberg

technology." a bounce back for tech stocks. the nasdaq 100 seeing a bump a day after a selloff that erased trillions. with all be outdone with new inflation numbers? plus elon musk discusses that banning donald trump on twitter was flat out stupid and that he would reverse it. and tony fadell's talks about the most and least exciting interventions coming out of silicon valley later today. first let's get a look at the markets. tech companies driving a rebound in stocks as traders try to read more clues about what the fed is trying to do. ed: we are still showing anxiety about the outlook and a key cpi

out-of-print looking -- coming out on wednesday. technology to clear out. 1.3% on the nasdaq, clearly outperforming the s&p 500, the broader benchmark index. we're still at the 3% mark for yields. we are trading sideways. we are going a day long on wednesday but we are coming off the back of a three day off the nasdaq. we have the 50 day moving averages. normally this will not be a good sign. we have had such a pullback in so many prices for companies on that index. could we see some dip buyers coming in? we have the strength index and 70 is overboard territory. we are up 35 right now. we are waiting to see what happens next and all eyes is on

that inflation print that comes wednesday morning. finally look at those movers that come through tuesday's session. apple coming back up, releasing ev stocks. twitter ultimately down 1.5%. he says if he is successful in buying twitter, elon musk, he would reverse the ban on donald trump. we're looking at the context of the earnings, coinbase softer than expected sales in the first quarter. the problem with coinbase is that we're looking at transactions going further into the second quarter. we have been down more than 10%. you have to remember that with a volatility we saw a lot of volatility in the first quarter on all risk assets, but the sales and earnings did not meet earnings. emily: and cryptocurrencies falling. thank you. i want to dive into the ongoing volatility and we saw a big selloff since the start of the

year. where joined now by the chief market strategist at putnam investments. thank you for joining us. what do you make of the selloff especially when it comes to tech? is there more to come? >> there is probably more to come. it makes sense that tech stocks have pulled back so far because we have seen tech stocks do well in the past three years, especially because of what we saw from covid, but those are easy money policies that the federal reserve was pursuing. as the fed begins to pull back, a lot of tech is dominated by those companies that have very little cash flow now and markets have been betting on market cash flows pretty far into the future. we have looked at the tech sector between those companies that have dominant market positions, strong cash flow now, and those that were hopes and dreams. that letter group may not come

back for a long time, if at all. but the former group has come in well and that is where the opportunities are. emily: inflation numbers are coming out in 24 hours. how is that going to affect the broader story? ellen: inflation remains high and we think it will peak sometime in the second quarter. if we see a high inflation print tomorrow, that is bad for the long-duration tech stocks. that will give the fed reason to raise rates faster. real rates are going to increase and then you are just standing for a lot of the growth names. emily: how much more is to come? hello can we go -- how low can we go? ellen: it depends on the company but we would not be surprised to see a gap in the larger names and some of the smaller names, it is hard to say where they could go, particularly those that are less profitable.

a lot of the excess has been run out of the bigger names so if you look at some of the largest tech names and the outperformance they have had going into 2022 that outperformance has been given back so we think the larger names are pretty close to bottoming out. one can never say never and it is hard to predict, but they are getting to the attractive values some of those smaller and less profitable companies, it could be a while. emily: let's talk about a big tech earnings. we have seen a number of companies missed their mark this quarter. you see that happening again this quarter and next quarter? ellen: that will depend on what happens with underlying economic rose. right now it does come back to the consumer and corporate strength. the consumer remains strong. we still have the excess earnings on the consumer balance sheet. consumers have good wage growth and they all have jobs for the

most part. we saw unemployment, in last week at a low of 3.6%. the economy keeps going, then we think that the company top lines will be ok. the biggest question is whether that slows down materially from here and the second question is whether or not wage pressures are going to catch up and cause big tech to pay more to their workers. if we take -- see inflation take hold across the board, that can slow the economy down and keep inflation high and because the fed to move faster than they had before. if we came -- if the fed can engineer a soft landing, then we will be ok, but this has been a company by company valuation. emily: there are a lot of factors out of their control including china's covid policy continuing to keep a check high

on lockdowns. the tesla factory has experienced a lot of interruptions and apple has warnings about supply constraints and the impact it will have on their quarter to the tune of a billion dollars. what do you think the impact of china's covid policy as having specifically on this broader slow down? ellen: it is a factor in particularly on the hardware side. all of the hardware, including all of the assembly, takes place in china so the zero covid policy is definitely having an effect. the question becomes not what effect it is having today, but what affect it will have in one or two quarters. if the government has the wherewithal and the plans to continue with this type of sharp lockdown for an indefinite. of time, if they ease up on it, if the case numbers get better or it becomes untenable, we can

see a lot of tech products begin to slow again. a lot of it will depend on the policy itself. if the case numbers get better or if the zero covid policy is effective at keeping it contained in certain areas, i do think there will be a relief rally as we see a lot of exports begin to come back online. emily: we need to see how committed china is to that zero covid policy. what is your advice for tech investors right now? are there any safe havens? where should they be putting their money? ellen: have a shopping list and have the names you want for us, names like microsoft, google, apple, stay away from companies who are being eroded by consumer preferences or covid and stay-at-home ending. and find companies that are generating cash flow now.

i do not think the negative cash flow companies are likely to come back. that could really be a losing trade going forward to try to buy some of those, even though they are down 80%. it is probably not good to phase those because unless they come back with easy money, we will not see those lua shinzo again -- those valuations again. emily: thank you for joining us. coming up, elon musk says he will reverse the permanent ban of former president trump if his bid on twitter goes through. there is still doubt about his ability to buy the platform up next. this is bloomberg. >> this is not like anything. i will definitely put it on twitter. ♪

>> he has probably stated that he will probably not be going back to twitter and he will only come through social. the point that i'm trying to make, which is not getting across, is that banning trump from twitter will amplify trump's voice among the right, and that is why this is morally wrong and let out stupid. emily: musk speaking at the future of the car summit and his thoughts of banning trump from twitter. muska saying he will reverse the ban -- musk saying he will

reverse the ban of his by through of twitter comes through. not only did he say he reversed the ban on -- he will reverse the ban on former president trump, but he casts some doubt on it going through it all. >> he had a caveat that the deal was not yet closed, that he did reference the idea that it might not go through. investors have speculated that he could walk away potentially. there has been a pension fund to buckle -- block it and you see the sources investigating it paid he basically said that banning does not work and he cited trump setting up his own social media platform where his voice is a heart on the very right-leaning platform and he used this as the basis for an outright ban not working on the twitter platform. emily: musk confirming that

twitter should be cautious about permanent bands. that said, the he said he should be ok with banning some individuals and content. besides the case of president trump, what would be different for content moderation under elon musk? >> it is unclear because he says he is a free speech absolutist and when it comes down to it, when you drill into the details, he is totally open with some content moderation. he wants to get rid of the spambots, he wants to get rid of this bitcoin spam that is happening on twitter right now. there are some types of content he is ok with getting rid of and he was speaking with the european union commissioner yesterday about this very problem. we expected there to be a lot of clashing because the eu wants to have strict content policies. elon musk says he has no disagreement here and he is on

board with all of the things you are saying, which was surprising to me. it is unclear what will be different besides a little bit more friendliness to the right. emily: and explain his a line of argument that by removing trump from twitter, you amplify his voice elsewhere. ed: it is ahead scratcher but he has put it in simple terms, that it was foolish to remove trump from the platform. trump set up his own social media platform, true social. it does not have the broader debate of conversation than twitter does. it is very right-leaning and it amplifies trump's a voice with that section of american politics. he did display some frustration because the moderator of that conference said, what is your position on reversing the trump and -- ban?

it is academic to a certain point that if he had never done that he, never would have set up true social. emily: musk also goes so far to endorse jack dorsey's support, saying that jack dorsey also supports this un-banning of president trump. >> my opinion, and jack dorsey shares this opinion, is that we should not have him on a ban. that does not mean that somebody gets to say whatever they want to say. if they say something that is illegal or otherwise just destructive to the world, then there should be a temporary suspension or that particular tweet should be made invisible

or have limited traction. emily: to be clear, former president trump was banned from twitter under jack dorsey's leadership. he responded to a tweet to that effect, saying that he agrees that there should not be permanent bands. ultimately permanent bans do not work. sarah, what you make of elon musk invoking an endorsement from jack dorsey? as jack dorsey also going to be in the driver's seat? sarah: we know that they are friends. what is strange about what jack dorsey has been saying is, who was the ceo of twitter when trump was banned? who was the ceo of twitter when they were making all of these policies about who they needed to moderate on the platform? it was jack and his strange comments like this recently,

talking about the twitter board is beholden to the market and these are all big problems. he was running this thing so he could have paged a lot, saying that while he was in charge, i would like to hear more about jack about why he feels like that. i do think that he feels that if twitter is a private company, they might have more latitude to make certain changes that he was not comfortable making as a public business. elon musk could make that happen through his deal. emily: musk said he would be twitter's ceo for a time, but is it possible that jack dorsey comes back as ceo as well? sarah: that is possible and it is one of the top names that is speculated. elon musk running it or a few what -- for a few months may be something that is trying to get investors on board with the

plan. he has a bit of a midas touch when it comes to the things that he says are going to work out. he certainly has lofty plans that he has put forth for twitter, but he has this cult of personality that when he takes charge of something, people listen and come on board. maybe he should convince jack to come back and run twitter or maybe he has somebody else in mind. emily: what do you make of that thought, ed, given that elon musk runs another company? ed: he has the talent sharing material this goes between from tesla and spacex. he has tweeted a lot that twitter is ultimately a software company and he has talked about making stakes of twitter the underlying technology. he has also talked about tesla's hardware,. beyond that, his suggestions are

straightforward. he accused twitter of being slightly left-leaning or liberal because it is based in san francisco and as sarah alluded to, we have talked about how he wants to drag twitter back into the center for content moderation policies. beyond that, what's they make clear is that he is not in favor of an outright ban. perhaps making invisible certain tweets that breach policies, but not an outright ban. emily: thank you very much. that is ed ludlow and sarah frier. coming up, tele-maker buys -- can they turn it around? this is bloomberg. ♪

emily: a rough ride for peloton. the company tumbling to record lows after losses. we are joined by mark gurman. how quickly is this bike maker going downhill? >> as quickly as you can ride a peloton bike, with all of your energy. this company is an unmitigated disaster. i don't know why they went public in 2019. they went public just a few months before the pandemic started and that kicked off their sales. all of their success has only been in this pandemic period. this is a company that was generating $3 billion per year. this is not a company like apple that is generating $83 billion every week. their numbers are disasters. they have missed on the revenue numbers for q3, now in addition

to the end of q2. they have to re-guide yet again, so things are not going so well for the new ceo. he came into the job on february 9 three months ago. at this point, the stock is down 60% since he took over. if you compare that to the s&p 500 index, the peloton block is down for the larger market, so it is peloton investor, analyst, and consumer belief as well. emily: during the pandemic it did have a strong brand name into the pandemic, but now that we are out of it, what is barry mccarthy's turnaround on it? mark: he believes that he sold the vision during the pandemic and about these numbers come -- numbers continuing.

barry mccarthy's turnaround plan is to hike this to go from 39 a month to 40 a month starting on june 1 in the u.s., so we will see the impact that has on subscription revenue. he has also cut the prices of the treadmill to major bikes between $100 and $500. that is going to lower margins and revenue on software and they're hoping over the long-term to combine it with a leasing program to provide more continuous revenue coming from subscriptions and people signing up on these monthly plans. but on the first three months of the job, it has not yet resulted in positive moments. emily: we will see how peloton tries to retake control. thank you. coming up, in these times of market turmoil, what can investors learn from one of

tesla's iconic inventors? he has got unorthodox advice coming up. this is bloomberg. ♪

emily: welcome back to "bloomberg technology." while the recent tech selloff is leading to a massive valuation cut in private and public markets, funding is hard to raise. how do founders keep building? tony fadell, one of the key players of the iphone and ipod, has come out with a new book. he joins us now. it is always great to have you

back here on the show. we always appreciate you and your unorthodox advice. in times like this, what advice would you give entrepreneurs? tony: first, hopefully you didn't go into crazy business and overextend yourself. i hope you didn't take evaluation you shouldn't have just because it looks right on paper. you're going to break the shift and the biggest ring is -- thing is reminding your team that those numbers were all fabricated and go back to the business of working on your mission and achieving that. also trimming the sales. you have to go back to your first principles and stop thinking about this. the overinflated market has changed dramatically. it will level again and the pendulum is swinging one-way and the other way, but again, stay

focused on the work. go make your mission happen but don't worry about all the craziness happening around it. the big thing is taking care of your team. emily: in a nutshell, what are the lessons you learned the hard way? tony: let me count. i think the biggest one was understanding timing. you can have great technology, but understanding timing. the market has to be ready for the innovation you have. the second thing is understanding how you are telling your story and you have to tell a story of why. that is what my book is about. it is all about the why. too many times in the tech world, engineers worry about the what. but it is all about the why. what do you need to do to get that message across and make sure your project -- product delivers on that?

start working on the story and making sure that the story is a painkiller. emily: google bought one of the things you build, and that was nest. it did not go as planned. what is your take on what went wrong there? tony: if i put it this way, we spent six months trying to figure out the right way to work together. and whether this, what i call, marriage was going to work out. it was ok for the first two or three quarters, and then it was like we were swindled. all of a sudden it blew up and it really amounted to -- i thought that something that they would purchase for $3.2 billion would be something that they would cherish and understand that they have to nurture and take care of it. they were making so much money that they went on two different things, so we would get another

toy that was there for a period of time. for us, what we thought was going to be a great marriage turned out to be a toy for them and we were left hanging while they went and did other things. it was about focus and leadership. that is what happened at the end of the day of why it didn't work out. emily: speaking of another unorthodox marriage, that could happen between elon musk and twitter. he had proposed that it might not go through, but what do you make of that deal? tony: elon is an innovator and a brash one at that. you have to give him credit for what he has manifested in this world and how he has changed the auto industry to move. if we look back in the days of the oil barons, the media that shares that controls how the story shapes the message of what

they were doing. there are some echoes of that in how you on is trying to purchase -- elon is trying to purchase twitter, but also how twitter has stalled for many years, how the algorithm works. some of the innovation concerns of editing and deleting tweets, content moderation. that said, you can go the other way where there are no controls, where you remove everything, and it becomes everything that is reminiscent of a 4chan or whatever the latest toxic social media platform is. i hope that elon is able to look at this and say that i'm going to divorce the world of algorithm and revenue from the tweet stream and we need to separate the capital and the revenue from the messages that

are amplified by the algorithm. if they are tied like they have been, that is one we have the toxicity that happens. if it bleeds, it bleeds. i told elon to do the right thing, even if he brings trump back on, he should not be amplified for revenue game. emily: let's talk about that for a moment. i want you to listen to what elon had to say today. >> i am not on twitter yet, so this is not something that would definitely happen. emily: is bringing trump back on twitter the right call? tony: it depends on the algorithm, depends on the environment he will bring back. if he can amplify and continue the misinformation that he has been doing, and that is for revenue purposes, then that is

flaw. everyone can have freedom of speech but it comes with consequences and it cannot be tied to revenue. the more toxic it is or the more entertainment value it is, you make more revenue. if that is the case, he should not be allowed back onto the platform. everyone should have a level playing field and it should not be tied to your revenue or dollars that is going to be seen by the company. emily: apple today, just in time for you to join us, discontinued its last ipod model. obviously the ipod led to two decades of innovation at apple, it led to the iphone, but how do you reflect on the end of an era for the ipod and the thing that you are the father of? tony: at the end of the day, technology marches on. the beach never stops. -- beat never stops.

the apple two died in the 90's, well past the days when the mac took over in the later 80's. then again, when we look at it, the ipod was already starting to be cannibalized around the time of the iphone. it was always understood that at some point in some time, the capitalization of the ipod would be gone. i cannot believe the ipod has lasted this long, to tell you the truth it is a cornerstone. it is an indelible piece of technology in general. those things are going to live on well beyond and if it wasn't for the ipod, we wouldn't have the iphone. all of these things are stepping stones. i can speak fondly of those days and those incredible times and the apple that we know today would not have the student without that development in that

crazy time -- apple that we know today would not have developed without that development in that crazy time. given what we're hearing from other companies, i think they're doing a great time -- job. editing supply given the macro environment is difficult and they are doing -- managing supply given the macro environment is difficult and they are doing a great job. it is not the same kind of innovation that the consumer thinks of innovation with the ipo -- iphone or ipod, but innovation is happening at the lowest level like touch id. we have things like the m1 processor. that has been an innovation that was born out of the 2008 time

when i was there when they created the mac silicon -- sorry the apple silicon for the iphone. those kinds of innovations cement apple into the future for more and more transformation and innovation. we are seeing that the hands of that is happening at the lowest levels, but it will come out in other products over time. emily: tony fadell, future shape principal. always great to hear your broader thoughts on the tech landscape. thank you for joining us. coming up, stable coin used to be the safe space in crypto, but is the honeymoon over? more next. >> stable coin is here to stay and i think it will also help out all activity on various

changes paid i hope the regulators recognize that as well. ♪

emily: it is time now for our crypto report and the start of what came out of coinbase's latest results. sonali basak is with us. >> we have coinbase down almost 14% out of market after reporting earnings that have missed analyst estimates. they falling short on monthly transactions, followed by 2 million in the first quarter. first quarter revenue also below

analyst estimates. this is for a stock that is already down 70% this year. there was an expectation that growth would slow and they say that coinbase growth would slow into the second quarter of this year as well. we have the coinbase ceo addressing analyst at the form, sing into -- saying it will eventually be profitable, but they will not be profitable for this year. the question is will investors be patient with them as they make it through a volatile time and diversify away from trading revenues into these products like working with banks and institutions? emily: thank you. i want to turn to algorithmic stablecoin that came up recently where treasury janet yellen talked about the dollar backed stablecoins as well. the post provides calm in the

volatile chaos, but terra plunged 60% on monday. it is back around $.90, but is this trouble for stablecoin broadly? i want to bring in our guest for her take on all of this. let us zoom in on terra. what does this activity mean? >> there are a couple of things at play. there is a difference between an algorithmic stablecoin versus a stablecoin that is backed one to one with the u.s. dollar. when you look at the comparison between the u.s. tc and the u.s. tc, they maintain that one-to-one peg. what we get is that we saw a large motivated seller going into the markets and the price that you would be pegged, caused

an initial drop down. it was roughly .8 on the dollar and why is that concerning? it was concerning because the luna foundation guard also manages the yield pool called anchor. anchor has been generating over 20% yields. now 80% yields for a number of personas. anywhere from retail to institutional. what happens is you have roughly 17 billion of total value locked in anchor now dropping significantly due to that because people were getting liquidated. once that ratio was no longer one-to-one and the luna foundation has to gauge in order to repack that stablecoin as you mentioned, and yesterday they saw that peg drop down to fixing cents on the dollar. emily: meantime, secretary treasury janet yellen talked about bitcoin as a risk to

financial stability. take a listen. >> the usd experienced a run and has declined in value -- terra usd experienced a run and has declined in value. this is a rapidly growing product and there are risks to financial stability that we need a framework that is appropriate. emily: what is your response to that? aya: we need a framework that is far more than stablecoin and crip though. this strengthens -- and crypto. this strengthens different coins like -- on market cap did you also see other stablecoins gain in traction. the question here is rather -- whether it is algorithmic or a

one-to-one peg. whether investors have investment in -- if you look at anchor, earlier today it was less than $7 billion left in anchor, still decreasing, reflecting that i don't think the retail and the two shall investors have faith that that will be maintained algorithmically. >> you do see ust dropping once again, removing that peg further so you still see that volatility today, even when you see bitcoin recovering a bit. i am wondering what rotter ramifications are there, especially for -- what other ramifications are there especially for b-side. aya: you have a number of these runs happening historically, but the market has shown resilience

through those market volatility turns. overall, we have stayed relatively range bound last week and we will continue to be range bound had it not in this anchor run for the money. what we will likely see is that we will see that capital going into other forms of yield generated assets. right now, it is all institutional claims with some level of yields. flat is the new up. if you can maintain a flat return relative to what is happening in public markets like crypto, that is what people are looking for. they're either buying swaps, derivatives, and scripture products, which is what we are looking at. emily: aya kantorovich along with sonali basak. thank you. apollo plans to lead $1 billion in financing for elon musk's twitter bid. this adds to the long list of

unusual investors that musk has worked with. coming up, what do drake, lebron james, and bono have in common? they are all backing a home solar energy company. they are all investing in this business. more on that next. this is bloomberg. ♪

emily: it is time now for this week's economics segment and the spotlight is on solar panel energy. only 4% of homes feature solar panels. however, investors from lebron james to arnold schwarzenegger

believe that palmetto can turn that around. how have you gotten folks like drake and bono and arnold schwarzenegger on board? >> thank you for having me. these types of investors see what we are working on since 2009, which is climate change and energy independence is a big problem. four palmetto -- for palmetto, we are focused on the tech platform solving for its solar delivery. we lay down three simple steps for you. one is whether it is an and vegetable -- an individual entrepreneur or a company and we provide them the tools for their company. then we build -- for the consumers to help build our brand, and we provide full quality control to our partners, especially in projects where the

markets, and that lays a promoter work. emily: you have pitched a $3 trillion investment by the u.s. government to fund solar for the entire country. how would this work and have you gotten any back from the white house? chris: we have not gotten any feedback from the white house to address this directly. the only point to remain here is what that quantum of capital is. how that would impact energy independence if we were able to allocate that capital to finance renewables, specifically solar. emily: otherwise, how do you scale rooftop solar? how do we get there? chris: we get there through best product, best price, and great

service to customers. we's focus -- we focus specifically on channels to get technology to consumers, we deliver solar took the customers' homes and service it. you are saving money on a monthly basis, but then you want to tell your friend about this, and the supply wheel goes from there. we have been doing this for 14 years and we have seen the momentum and price drop. emily: palmetto ceo chris kemper , we will keep an eye on does it for -- we will keep an eye on it. that does it for "bloomberg technology." we are watching earnings from disney and a big announcement from airbnb the.

i am emily chang in san francisco. this is bloomberg. ♪

>> the following is a paid program. the opinions and views do not reflect bloomberg, its affiliates or its eye >> the following is a paid presentation brought to you by rare collectibles tv. >> the california gold rush is considered to be one of the most impactful events. it has had a long-lasting lasting impression in numismatic history. the people of california needed a way to standardize the value of the new gold