>> 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. this is "bloomberg technology." temporarily on hold. elon musk creates chaos with early-morning tweets causing confusion over his deal to buy twitter. the company's current ceo speaks up. we talked to a founding member of the early to team about where this chaos is headed. and we have a wide-ranging conversation about where the chaotic market cycle is headed and what it means for startups. and his thoughts on twitter and former colleague, elon musk. $200 billion wiped off of the crypto market since the start of the selloff. how cold will this crypto winter

get, and how long will it last? we get to that in a moment. stocks bouncing back after a wild week of swings. jay powell said they are off of the table for now. ed: how is the market going to react? 24 hours ago we asked how the market was going to digest the fed chair 50 basis point hikes is appropriate? this is how. relief. green on the screen. it has been ripe with volatility. up 3.7%. tech heavy index. biggest jump since the middle of march. risk on sentiment, yield of the u.s. 10 year treasury up around seven basis points. the risk on end to the week. bitcoin recovering, $29,000 per token. had been $25,000 at one point. then you step back and we look

at this chart. six straight weeks of declines on the nasdaq 100. the momentum is clearly going in one direction. we are clearly in bear territory. particularly the technology sector in the equities market. we are asking where is the bottom? what will it take to change direction and turn a corner with selling pressure in the riskiest parts of this market? at the same time, volatility coming from someone else, elon musk. twitter down 9.7% during friday's session. elon musk tweeted the deal to buy twitter was temporarily on hold because the company had released a regulatory filing saying less then 5% of users on the platform are bots. he took exception to that, but later clarified he was committed to the deal. get to see a relief rally. tesla stock up almost 6%.

perhaps a step back from the deal, give tesla investors confidence that whatever happens, it will be more favorable to elon musk's tesla holdings. what a week. emily: ed ludlow, indeed. the back-and-forth from musk continuing. he tweeted the twitter deal was temporarily on hold. as matt levine points out, that is not actually a thing. he says musk signed a binding contract saying he cannot turn away, even if spam accounts do represent more than 5% of users. musk said he is still committed to the deal, but it is casting doubt on what happens to twitter. for more, i'm joined by jason goldman. a board member from 2007 to 2010, and also the white house chief digital officer under president obama. you do not mince words about this. to put it in words appropriate

for our television audiences, you say either way, twitter faces a not good outcome. why? >> either elon will acquire the company, and he has shown to be not serious about the proposition, the ideas about what he wants to do are not serious, or he walks away. that is basically a one-sided option he holds at this point. and the company is left in a situation that is in critical -- increasingly chaotic for them to manage. emily: how big is the bot problem? does he have a point? >> he doesn't have a point. it is not serious. it is fine to report that is why the deal was on hold, which is as matt levine pointed out, not a real thing. the bot thing is not real, either. we don't have to look far to see that is not the real reason for what is going on. on april 21, he said if the twitter bid succeeds, we will defeat the spam bots or die trying. he set himself up to say he would take on the bot challenge,

which i don't think is a significant problem. now he's saying the opposite, "i'm going to not try at all and deal with the bots." emily: you tweeted "we went through a lot of episodes of soul crushing drama in the early days, a lot self-inflicted, but this has to be the worst ever." i'm sorry for the folks at the company expected to do a job through this mess." we know a couple of executives were let go yesterday. the company now has a hiring freeze, cutting costs, they might rescind some offers. what is it like being a twitter employee right now? >> the recent offers is a very serious step. people who accepted a deal with twitter, turned down other offers, and are being told they don't have a job. when there is a hiring freeze and they let go top executives, that is why elon walking away is also bad for the company. you are now talking about company that has not only hamstrung itself in terms of

hiring and mixed messages to employees about the future, you are also dealing with the board of the company saying "we don't have any better ideas than selling to elon," in terms of what the future should hold. it has put the company in a very precarious death spiral. emily: the current ceo of twitter took some responsibility for the changes he's making. he said he's not doing it because he is a lame-duck ceo or just to keep the lights on, but he's aching about the health of traders business and thinking of all scenarios. what does that mean? do you think if elon musk wasn't supposedly buying the company, he would be doing this? >> i think that is what his prerogative is to say. he has his team around him, even if it is for a short period of time. i give him a lot of credit. -- has said i've only been on the job for months, but at the company for a decade, and we could have done better to avoid the sale.

unlike a lot of people on the board, or jack, the founder who said it is the only way out. he took responsibility and said we could have done better to avoid the outcome. it is fair to position the company in the best way he can to lead to whatever exit or end point we are leading towards, but none of the options are good when you cannot even hire new employees. emily: snoop dogg jumping into say he might have to buy twitter now. what about another scenario, somebody else, snoop dogg or not, i thought google could make sense -- what if someone else buys twitter? could that happen? >> google has approached the company a number of time. -- times. we were in conversations with them a couple of times to buy the company. i don't know what the regulatory hurdles are. and certainly it is more difficult for a company like facebook, who also tried buying twitter a couple of times.

it is difficult to see those kind of outcomes. i think if elon walks away and the stock price continues to decline, other options would be on the table. emily: speculation has been made that it is friday the 13th, maybe elon musk is trolling us all. >> i don't think he is a serious person. i don't think the way he has approached this on bots is serious. the most credible take is he wants to renegotiate the price. certainly he has the board in a position where they agreed quickly and they saw no other option's, and they said he is the only solution. elon can say if he's the only solution, he can set the price. particularly the tech market declining since he started buying up the stock. i don't think he's serious about bots, i don't think he has been

serious on his positions about free speech, ideas with putting the algorithm on github, which is not a sensible idea. i think it is a way for him to be in the headlines, have people talking about him, he would like to own it if you got a better price. but he doesn't have any ideas what he wants to do with the company. every additional turn of the crank where he talks about what to do, whether the business plan to investors, or talking to folks about free speech ideas, revealing how uncritically he has approached it. that is why the company is in such a predicament. emily: he tweeted he's still committed to the deal, he signed a binding contract. always appreciate your opinions and take on what is happening. one of the founding members of the early twitter team. jason goldman, thank you. coming up, reid hoffman. his thoughts on the market. what it means for entrepreneurs, and his take on twitter and elon

musk. he joins me next. this is bloomberg. ♪

emily: trillions have been wiped off of public markets in the last few weeks. a lot of pain coming from tech stocks. sadia remco were placed apple as the most valuable company. the turmoil, hiring freezes, layoffs, and private companies. where are we now and how bad will it get? i'm joined by reid hoffman, who has been investing in tech and knows a thing or two about ups and downs. also the cofounder of linkedin. a version of his number one best-selling book, the startup

of you, being released for a new generation. great to have you back on the show. we will get to the book. i want to start with the mood. given the market turmoil, valuation cut downs, what is the mood? how dire is it? >> the mood is troubled and expect more volatility rather than less. on the other hand, technology is strongly the future. the question is technology, more volatile fundraising, not as much capital available. some businesses harder to raise than others. sort it out and be careful. take your balance sheet and all of that. we think technology and technology investing is where we will see most of the growth and change in the industries in the world. emily: steve sarah you know --

steve saraceno thinks people will lose jobs and it will be shocking. do you agree? >> fundamentally, no. companies over seas have started investing, burn rates above the revenue, we will do a reset. public companies will have to show they are disciplined and operating margins and revenue. you will see layoffs. i think capital, technology of the future. get laid off from one company might have three other job offers in companies hiring. it is not quite the dramatic -- there will be people on the streets. there will be a shuffle for talent and companies shuffling to one's that have deeper capital or more revenue going. emily: others are saying that and down the hatches, cut costs.

what are you telling your portfolio companies? >> it depends on the company. if you have a place with a deep well of capital, good revenue and growth, one of the places you can tell strong companies from the week is keep investing into where you are heading. we did the same -- linkedin in 2008. we had a chance to invest in the future. when you have companies with the ability to make that play, you take that play. on the other hand, you say we are figuring out product market fit, we don't want to maintain our burn rate relative to extra months to choose our market, which we want to raise future capital, then be more disciplined about hiring, expenses, and predicting the future. emily: is it like 2008, the financial crisis, or something

different? >> it is different, in part because for example, while there is a shift in the market, there is still a lot of capital that says if i chose where growth and the future of industries will be, new revenue streams and businesses, it will not be all technology. if it seems new and interesting, throw money at it. a little more production, this is the industry of the future, let's bet on that. emily: in the start up of you, you pioneered that anyone can be an entrepreneur. what is your advice to a new generation in this environment about how they take control of their own careers when a lot of people are reevaluating life and work? >> the basic idea is careers are now more like a startup than they are a career -- you can call it a jungle.

you have to be maneuverable and flexible. adaptability is the new stability. even if you don't start a company yourself, it is the toolset for every professional, every worker. here is the basic toolset. if you would like to run your career in this modern entrepreneurial, adaptable way. emily: someone else seems to be at an inflection point in his career, elon musk taking on the possibility of buying twitter. i know he is a friend of yours, he was a colleague of yours. >> i saw your earlier interview. everything he said on twitter and twitter circumstances was correct. has not innovated as much as it should have in the last decade, five years. if he's one of the world's most

amazing innovators, i think it is counter to what jason said. he has an interesting plan. the bot might be on target or not. but he is an active user, in the last couple days even. he has a sense of where the product should go. always a product oriented entrepreneur. so he has a plan and something he's interested in. obviously, the tweets of where we are going with the deal are not great for stability within the company, employees, and the future. emily: do you think he's serious? on the other side of the deal, would you be frustrated with the back-and-forth? >> of course you should be frustrated. pleading in the morning saying hold, then later that he is

committed, needless thrashing on this. on the other hand, here's a person who revitalizes the industry, brings on the future in green cars and other things. a bunch of very interesting things possible with the innovation. i think the volatile tweeting is a little less great. emily: almost 20 years since you founded linkedin. can it be the moment where the new social network of the future gets born? users, the market, is elon musk saying we need something new? >> i think we almost always -- will there be a new social network five years from now that we don't see right now? almost certainly yes. we would not have the addicted tiktok coming in, thinking the video stuff was owned by youtube. we will see it.

what my job about his figuring that out and investing early. twitter has great potential. that is most exciting in all of this. working toward that potential is huge. in terms of a new social network, you will see one in the next five years. where will come from and which country is very much to be decided. emily: coming up on the anniversary of the facebook ipo. you were an early investor. you have been frustrated, and you expressed it with some of mark zuckerberg's decisions. what do you think about the vision for the metaverse? are you bullish? >> i haven't talked to zuckerberg about that at all. i'm a little more cautious on the metaverse, thinking of a wide variety of things. just because what we will first see before we see deep social

applications or work applications is deep entertainment applications that have a broad-based appeal and interests. i have not seen those. i have seen specific ones. what they have done with oculus is amazing. we are still some ways away from that option of the metaverse. are you can call it mass versus adoption or something. emily: the metaverse can totally change the way we live and work. what do you think about the future of work? has the center of gravity permanently shifted to the home or not? >> almost certainly, it has not shifted terminally to the home. we are social animals, we get energy working with others. you can make decisions more quickly with everyone in the room. there will be a return to offices, places where people are congregating together to work.

we have two years of adopting tools for virtual work. i think that will expand the tools, kind of zooming in from some other place. having distributed companies come together every six weeks. all of that is what you will see persist. what i don't think the office is going away. emily: you recently cofounded another company yourself called inflection, focused on the future of ai. tell us about this and where you think the future is. >> one of the thing is, ai will transform every industry. we have seen some of the amazing work, microsoft and open ai with copilot. you are seeing all kinds of things. with inflection, we thought about the things we could most do to give human beings

superpowers when they deal with computers. the set of things enabling that to happen. it is not a lot we are saying yet, because we have a specific addict idea we would like to attach and pull back the curtains. but it is an ai plus humanity theory. emily: reid hoffman, can't wait to see what else comes of that. thank you for joining us. check out the updated version of his book. much more to come. including much more musk and twitter. reid hoffman thinks he's serious. we talk about it more later in the show. this is bloomberg. ♪

emily: a major change could soon be coming to apple. vonnie: learned --

bloomberg learned the company is swapping its charging port with the usbc connector for future iphone models. a move they are making to conform looming european regulations. apple is also working on an adapter to let future iphones work with accessories designed for the current lightning connector. coming up. toast has found a perceived -- perfect recipe. the company beating estimates. but with rising pressure, will it keep up? we will discuss. this is bloomberg. ♪

>> this is elon musk being elon

musk. >> this is so elon musk. >> him doing what he does, stirring up the pot. >> i think he's angling for a cheaper price. >> he didn't have a problem raising. >> i would want to do anything i could to get out of the deal of the price he set. the price makes no sense. >> it is looking increasingly unlikely to be the final bid to the extent there is an acquisition. >> twitter was not as mispriced as other equities have been. >> when it is ready to be acquired, i think elon is attempting to lower the price. emily: welcome back to "bloomberg technology." i'm emily chang in san francisco. sticking to that story and elon musk. putting his deal to buy twitter "temporarily on hold," later clarifying he's committed to the

acquisition. ed ludlow has the latest. we just heard reid hoffman, a friend of elon musk, we think he's serious and has a plan. ed: he thinks he's serious, i heard he has a plan. a lot of doubt in the voices across the market. twitter stock down 9.7%. the biggest drop since october. the reason we are following the share price in this snapshot moment in time is to track how far it has gone from the $54 bid elon musk made. in other words, the spread. we use it as a proxy to gauge wall street's belief of how likely the deal is to proceed in its current form, or indeed, if it will happen at all. on the right-hand side of your screen, the spread is at $13.48. the gap between current share price and elon musk's bid.

thursday night, it was $9.11. we have really widened the spread. the market is telling us it m believes -- it believes musk is going to -- the deal, or walk away from the proposal. we have been speaking to specialists who put the odds of the deal at 40%. that is not high. but it is friday. that is where we are now. let's see on monday. emily: let's see what the weekend brings. moving to toast. the cloud-based restaurant software company reported their results, beating expectations with a positive outlook, sending shares jumping. a bright spot in the recent state of tech earnings reports. i want to bring in the cfo for more on this and the digital revolution in the restaurant industry. you are facing very difficult

macroeconomic forces. prices going up, consumers under pressure. how is toast managing to keep strong results coming? >> thank you for having me. we posted some great results yesterday, beating across all of our metrics. that is a testament to our product resonating in the marketplace. we see a secular shift in the restaurant industry. every restaurant trying to digitize their operation to run more efficiently. toast is positioned to capture this opportunity. our results speak to our sales team, but the opportunity ahead for toast. in the inflationary environment, with costs rising, toast becomes even more valuable. we can help restaurants be more efficient, manage pricing, menus, line item by line item, detail on menu items.

we are excited about the opportunity ahead. emily: how much choices do restaurants have when the price of food is going up? and they've got to pay their bills. how do you see inflation impacting the business? your business and the restaurant business over the next few months? >> that is the beauty of the platform. we arm restaurant owners with data and performance insight to look at menu items, potentially increase price, and we help restaurants be more efficient. it is a margin game. if we help them with our tools, be more efficient, whether it is giving them hardware to run their operation more efficiently, or looking at menu prices, or optimizing the food they put on their menus. all of that is what toast does, and becomes more powerful during this inflationary environment. emily: toast went public during

the pandemic. they have cut their valuation by 40% navigating this process. what do you make of them going public now, and their model, especially the macro environment? >> instacart has always done a good job of the consumer marketplace. i think the market is different. if they have a long-term plan, thinking about our opportunity, i think they can have a successful ipo. but they should have a very long-term plan. we know there will be different market backdrops. that is how we think about our business. we are focused on the long-term play. as long as there is a good long-term strategy, it will work well. y: restaurants and companies like yours are becoming more intertwined with the gig economy

and the gig economy future. i'm curious about the labor issues we are seeing, especially in a tight labor market, or when people are struggling to make ends meet? >> we see that as a pain point for restaurants. that is where we can help restaurant owners, by leveraging tools. if they can leverage tools, we can help them serve more diners, even with our platform. we had a restaurant with eight servers serving 90 diners. a year later, they served over 200 diners. gives you an example of the power of our platform to help in this intense labor market. emily: you worked at visa, made it a fact crypto payments are on the rise, and bitcoin settled

more than visa. >> i think there is a wait and see approach on bitcoin and crypto. we are paying attention. we will see how it plays out. emily: elaina -- elena gomez, great to have you. wrapping the week in crypto. the future of stable coins after the terra debacle, and how long this crypto winter lasts. this is bloomberg. >> not all stable coins are equal. similar to many things in life, you can have different quality versions of the same product. ust was a highly leveraged experiment that failed. you have other stable coins that still have investor confidence. it really depends on how you maintain that.

emily: time further crypto report and wrapping the week in crypto markets that was. bitcoin plunged as low as $26,000. $200 billion in market value erased from the crypto market. that is almost as much as the annual budget for the entire state of new york, $220 billion. our crypto contributor puts it in perspective. >> it is amazing. you see that much wiped out of the entire crypto universe. all talking on the heels of what happened in u.s.t and the terra

ecosystem. the biggest cryptocurrencies fell below the $30,000 level. they have gotten a bit today. 6% of a rise in that 24 hours. helping bring the global crypto market back up more than 6%. over a seven-day period. cryptocurrencies, the top 10 at least mostly lower on the seven-day period. the other exception being the other stable coin, much more closely linked to the dollar. we will be talking about it for a while. what does the breakdown of the ecosystem mean for the financing and crypto? emily: we will look back at this as an inflection point in the broader crypto story. i want to bring in our next guest for his take. adam, cofounder and ceo of freelance labs. one of the teams building a

brain trust network with technical and design professionals. i don't think there is debate. we are in the middle of a crypto winter. how cold and how long does it last? >> winter is here, the tide is completely out read it happens a couple of years in crypto and tech. but it is a big change. we will see these old systems, these ponzi economics, a lot of defi that never generated value. it is going away. this is when the scammers leave, people playing games -- it all goes away. everyone has been zeroed out. we will go to fundamental networks driving value with users. emily: what does value mean moving forward? mark cuban has said -- the idea

more crypto assets. there is a big question about utility moving forward ahead. what do you see founders and talent gravitate towards now that some of the bubble has been burst? >> i don't know what crypto being more sass like means, but the fundamental value system, it has replaced the middle man who extract more value than they provide, replace it with software. moving from openly extracted investor owned networks, to user owned networks, marketplaces owned by the people who make their living on them. when you compress those margins were all they do is misaligned incentives between the operator of the market price and users who make a living, you give the value back to the people making their living on the network for the demand side. user owned networks, growing

faster and becoming more valuable. emily: what do you make of coinbase? saying they are not a ponzi scheme or scammers, trying to bring integrity to the market. but you look at the stock, plummeting over the last few weeks. what is the future for a company like coinbase? >> certainly not a scam or ponzi scheme, an incredible valuable piece of insert structure -- infrastructure in the u.s. an absolute stable. they are not going anywhere. they are a critical piece of this infrastructure for everyone. emily: a question i have. the big publicly traded companies where there are already massive investors. what do you think about the area where the valuations are coming down, what is the propensity for dollars to go into new

businesses, especially the early stage to help new founders expand the market in a downturn? >> downturns are great for building. when it is really cold out and everyone has to be disciplined and everyone says trim your budgets, extend your runway. it is good advice. these venture fronts have been raised. like these giant crypto funds, the money has been raised, it will be deployed. i think we learned a valuable lesson. some of this stuff gets a little too crazy. self-referential business models , as well as absurd valuations. hundreds of millions of dollars. the party is over. time to get back to work. emily: where does the money get deployed? >> party is over for the crazy stuff. i'm guilty. i was an early investor.

i was really hoping it would work out. but this stuff is so far out there from a business perspective, it is not providing value. that party is over. we need to go back to building networks giving value to work in the real world. it brings us, connects knowledge workers with big clients who need them. because it is owned by the talent, the fees are zero on talent and 10% on clients. talent makes more money, budgets go further. win-win. that is fundamentally valuable. emily: t -- emily: what do you think about terra and the future of unstable coins? >> their asset facts, like tether. you can redeem one for a dollar

hopefully in a bank account somewhere. so it should be ok. the argument against those is they are not censorship prove, a government can turn them off easily. the holy grail is the algorithm stable coin that can maintain a paid for the u.s. dollar, but not have full dollar backing and be able to withstand an attack. this has been played many times. it might be the breakout. there is a lot of finger-pointing about someone attacking it, or if it is a hedge in new york. it doesn't matter. if there is a flaw in the system, it will be exploited. i'm sure it will be tried again. emily: i'm curious about the responsibility of the terra ecosystem as people have lost money. is it completely investing your own will, or will there be chances to recoup losses in any

fashion? >>. -- >> i can't speak for them, because i'm not part of the core team, i'm just an early investor in the project. these are super risky. so many of these things are speculative. you have to do your research before you go in. i understood what i was getting into. i just read a couple hours ago that joe quan and the team are attempting a restructure and hopefully make ust holders more whole. i hope it works out. it is not a scam. these guys worked hard to make it work, and i wish them the best. emily: adam jackson, we will see how it works out. thank you. coming up, diving into the world

of medical scrubs and accessories. how the market is being reinvented in the middle of a pandemic, health care crisis, and how they are weathering the macroeconomic challenges. this is bloomberg. ♪

emily: medical scrubs and accessories company sank 22% after first quarter results missed expectations and lowered guidance. the company being impacted by supply challenges, inflation, macroeconomic turmoil. i want to talk about that and more with the co-ceo. it is a very different environment and market that you went public in. what is the reaction of investors? >> it has definitely been an

interesting corridor. it feels we had a great quarter. 23% revenue growth -- 26% revenue growth with 23% adjusted margin. coupling profitability and a tough macroeconomic environment. we understand the response. it is unwarranted, given how we are in position for the long run. emily: how dire are the supply chain challenges and how are you navigating them? >> this has been going on for quite some time. navigating through health supply chain environment through 2020, 2021, we have seen more unpredictability in 2022. we feel they are really well-positioned. airing more good through the rest of the year. adjusting product launch calendar, taking action to bring our product for health care professionals who need them so

badly to get to work and help us all. emily: the pandemic is still with us. what do you hear from the health care community and how does it translate into demand? >> from the demand side, we feel really great. this is a -- resistant industry. we make nondiscretionary products. they need our products to do jobs and go to work every day. 70% of our business comes from repeat customers. but health care professionals, it has been tough. our job is to celebrate, serve those who serve others. every day, we wake up to do our products the most. we will continue doing that. emily: you are focused on reinventing scrubs. i wonder if there are opportunities for avenues and growth in the lifestyle category? >> that has been interesting

about what we have done. we reinvented the industry with function, comfort, style. and on the lifestyle side, we grew that part of our business 81% year-over-year in the corridor. 18% of net revenues is everything outside of scrubs. health care professionals are layering products to go to our work, on shift, on shift. it is encouraging to see that level of growth across the business. emily: you and your co-ceo built together this company. the public company ceos running this company together. what is your advice to other executives in turbulent times? >> to be realistic in the near term and optimistic over the

long run, we are focused on the long term our community, building incredible products for incredible people. our mission and values, that is what we try doing every day. emily: trina spear, thank you for joining us. that does it for this edition of "bloomberg technology." wall street week is next with david westin and former u.s. treasury secretary larry summers and a bunch of other great guests. talking about elon musk. next week, bloomberg tech on the road in boston. a great lineup of guests to talk about what is new in boston's silica alle -- silicon alley and more. ♪

david: when it rains, it pours. inflation, supply chains, war, tightening financial conditions.