>> from the heart of where innovation, power, and money collide, in silicon valley and beyond, this is bloomberg technology with emily chang. emily: i'm emily chang in san francisco and this is bloomberg technology. it coming up, a tumultuous may for markets in an almost exactly where it started, what does it mean? to tech valuations and summer months to come, we will discuss. could online dating be the one market that will be spared? we will talk to analyst to says companies like bumble, tinder and haynes are recession proof. plus, from where the next covid

wave will hit to how high inflation will go to the winners of the grammys. a new predictions market lets you bet on just about anything. were going to meet a controversial exchange that is actually legal for now. and finally, the supreme court just blocked a texas law that could transform twitter and meta. we will have a report live from washington. all of that in a moment, but first let's get a look at the markets and stocks in particular. tech ending may almost exactly where they started this month. ed ludlow here with the latest. what was all the fuss about? ed: one of those days where you ripped up the script. i was here and prepared i had this whole spiel about how the nasdaq was higher on tuesday headed for its fourth straight day of gains. best month since march. last 15 or 20 minutes we are down 3/10 of a percent on the nasdaq 100, inflation fears starting to creep in, also semiconductors suffering down a percentage point, a big jump in yields.

that 10 year treasury at 2.85%. the only real upward trajectory in the market being bitcoin, that traded over the long holiday weekend in the u.s. from 29,000 u.s. dollars per token to around $31,000. you talked about it, the month of may, let's take a look at where we ended. i actually have seen this a few times in my career. s&p 500 up 0.01%. in the month of may, this is exciting stuff. this is what we are here for, following these markets. different story in the tech heavy nasdaq 100, down 1.7%. the nyc index for tech heavy town. semiconductors having a good month. there are concerns that the bear market we see in technology stocks has more likes to run crude we are focused on inflation. we are focused as well on valuations, even though they have come down, are they too high? breaking news after the markets salesforce in with earnings rising and aftermarket training, raising its four-year target now

up 7%, really bullish signals that corporate spending on software at least is intact. two quick stories and want to tell you about, was listed chinese tech companies having a great day tuesday. economic data in china painting a more positive picture, signs that could be are easing. alibaba and jd.com showing gains throughout tuesday's session. in a quick programming note, we got news aftermarket that met other parent company of facebook would change its ticker on june 9 premarket from fb, formerly for facebook to mbta format appeared just one for the calendar. emily: i want to stick with markets now and specifically talk tech. with michael wolf of activate. always good to have you back here with us. so look, what do you think all the fuss was about? we saw ups and downs in our track where we started? michael: part of this reflects

that investors are concerned that the growth rates are slowing down. it's not as if businesses are not growing quickly. yes they are concerned about rates, but to a large extent it is all -- this is a correction. it's is not a bubble bursting and in fact when people keep making this comparison to 1990 9, 2000 and saying oh, it's another wave of this. the reality though, we have companies that have real profits, that have real businesses, and the tech bubble in the early to thousands, what we had was business plans. and not a lot of revenue and certainly not earnings. emily: so here is the question, is it overvalued or not? if so, what is overvalued? michael: i think we saw right and left the market caps of these companies being driven up

almost illogically, because they were looking at tremendous growth rates. so if you look at a company like netflix which is down over 60%, netflix has over 250 million paying subscribers. so, yes, we have seen a correction in the value, but this is a substantial business. we're going to expect to see it continue to grow. if you look at other -- shopify is down by two thirds. this is an amazing business. it is going to continue to deliver, there is just a difference between the market valuations and expectations. emily: you have been around a long time, you've got folks out there comparing this to the.com bust. do you think that that is overblown? michael: i think it is totally overblown. the reality is that these are substantial companies.

they are leading in a lot of cases. they're having moats around their business which makes it difficult to compete against them. it is a totally different situation. now, if you look at the 2008, 2009, you see a number of companies that were started in those days and it gives you a sense. there is likely to be -- if you looked at square and others, airbnb, they were starting in that time during the last recession. so we should see a lot more innovation and a lot more activity, but these companies are substantial and they are going to stay substantial. emily: what do you think about the market? we've seen this massive rod, vmware deal. i wonder if that is in a league of its own, on the heels of twitter which is a unique situation. and there was microsoft and activision. are you going to see it more big-time m and a through this

tumultuous time? or not? michael: to a large extent it is going to be different. there are going to be different buyers. so one of the places where we should see a lot of m and a is an enterprise software. so if you look at the mcafee and salesforce and a slack, those are the kinds of acquisitions that we should continue to see. one of the things that is different is we are likely to see more private equity deals, so if you look at -- we have nielsen at 60 billion. other businesses like bravo's purchase of proof point. we're going to see a lot more because the market is seeing capitulation in terms of pricing. this is a moment when private equity firms can rush and find businesses that were way overvalued, versus a year ago. emily: all right, michael wolff of activate. always good to have you on the

show, michael p thank you for giving us the silver lining on some of this stuff. meantime, taiwan-based iphone maker expects supply chain disruptions to gradually clear up as shanghai slowly opens to trade after months of covid lockdowns. hon hai chair said shareholders are more upbeat about their outlook than before. they are apple's largest assembly partner. coming up, the startup that lets you bet on everything, from award shows to do covid wait. by exclusive interview with louwana miller pez laura. this is bloomberg.

♪ emily: from the outcome of the grammys to the next covid wave to future sec commissioners, you can now bet on all of these things with call sheet, a controversial new type of financial exchange where people can place wagers tied to outcomes of real-world events. joining me now, the founder and ceo of call sheet. i think you so much for joining us. first of all, some folks have been trying to push forward to these kinds of financial markets for years but it never happened how did you make this work? luana: thank you for having me, emily. and yeah, we get this question actually fairly often and the answer is not what most people

would expect. it is about we just have i guess more patients and more resilience and we just push through longer. it is a regulatory process and it takes a long time. innovation, especially the derivative space, there is a lot of new risks that we needed to look to and the regulators are looking or. and we were diligent with all of them. you can pick about surveillance, customer protection, rules and a lot of different things that we have to work through and integrate for two years and we really work hard for two years and did not give up to get it through the finish line. emily: for example the fed has another decision coming up and via call sheet, you can make a bet on what you think the fed will do. what are your markets showing about the fed's next move? luana: i guess to backtrack and explain a little bit how the markets work, you can buy yes or no positions on whether the

market, something will happen or not. the price goes from zero to one, if the market is correct. if your position is correct. and because the price is from zero to one, the price of 60%, $.60 means there is a 60% chance something will happen. so you can directly translate the price to the probability. with the fed markets, we have different markets for every fomc meeting. so for 50 or 75 basis point hikes are markets are saying that for the june fomc meeting, we will be seeing 50 basis point hike with 95% chance. the markets are saying the july meeting, we will see another 50 basis point hike with 90% chance. across the whole year, the markets are expecting 10 fed hikes versus i think a couple months ago it was predicting around seven. so a lot of hikes coming.

emily: president biden just unveiled this whole plan to keep inflation down. what are your markets saying inflation is going to do? luana: we have markets on inflation from 0% to 1.2 in every month of the year. the markets are saying the next inflation rate coming out next week will be at around 0.65% month over month or over the whole year, 8.2% inflation. our actual markets have predicted seven out of the eight past inflation prints correctly. our traders have not been surprised at all to see the high inflation numbers. but it is important to say that for the rest of the year, annualized for the rest of the year the markets are expecting around 4%. annualized in december around 3% which really is around normal levels. so really expecting inflation to go back to normal. emily: now regulators initially said no to an exchange like this, but recently changed course. isn't this gambling?

why should this be legal? luana: that is a great question. we are an exchange the same way that cme or the new york stock exchange are exchanges. you trade events are exchange the same way that you trade stocks or futures on cme or the new york stock exchange. we are just a trade matching engine that matches different people try take different positions. so if you take our fed markets for example, our markets are a way to trade hedge or get exposure to fed events, the same way interest-rate swaps are defined -- are designed to do. ours aren't made in an accessible and simple way. we really think that bringing it to people who have actual risks associated to this, like if you had a student loan tied to the 10 year treasury or if you are try to refinance your home, you have real risk associated to the fed raising rates and you should have access to the same types of benefits that wall street does. this is not gambling, this is finance at his best. it is about hedging risks in

getting exposure to what you have you face risks in everyday life. emily: i would love to learn more about your personal story. i know you are from brazil and you studied ballet, which i assume was hours a day. how do you go from potentially becoming a professional ballerina to going to m.i.t. and launching a markets startup? luana: that is a great question, i deftly had an unconventional path. i used to be a ballerina. i used to train eight hours a day at the ballet and i worked professionally in austria for a bit. i think that really changed and marked how i am as a person. a lot of discipline and sacrifice and looking to longer-term payouts, versus. short-term payouts definitely helped with starting. i was fascinated by math and science so i went to m.i.t. to study math and at the very beginning, fascinated by the finest world history of markets, market structure. and from then, it was -- worked

on hedge funds but i really wanted to make a mark of my own. which for us really is people should have the same access, everyday businesses should have the same access that institutions have to hedge events. most trading is based on events. you think rates are going to go up, you do this in the stock market. we want to bring this to everyday people and let them do the same and have the same benefits. so yeah, definitely a convoluted story, but it all adds up in the end. emily: last quick question, what is your position on crypto? is it bad? a market that is already well-established, we've got high risk, high reward route why not put your money in crypto instead? luana: as a great question. i think crypto has wiped out a lot of people in the past few months. you can take the luna example. i think it needs more regulation. i think a small portion of

crypto markets are regulated nowadays and you see a lot of scams just going around. easy 20% yield or something like that. in the end, they just use your money and it is people's savings. actual victims to this, so i think it needs more regulation and it needs to be brought into the regulatory oversight in the u.s.. i guess with us, you can also make money and lose money, but the difference is that we regulate that this will not be a systemic risk. that all the rules are extent -- explain the people and we have customer protection. i think the crypto industry should embrace and really needs that going forward. emily: luana lopez, we will keep watching. coming up, the supreme court has blocked a texas law that could transform twitter and meta when it comes to extreme speech and more. we will dig in, next. this is bloomberg. ♪

emily: the u.s. supreme court has blocked a texas law that critics say would fundamentally transform twitter and meadows business requiring them to allow hate speech and extremism. read who covers the supreme court is here. give us the context on this law moving through the courts, went into effect in texas earlier this month. >> it did in social media industry is worried about. the appeals court not explanation for allowing the

laws take effect. social media companies have the impact they would have to radically change operations. to remove the ability to such extent that could no longer moderate content. this supreme court let that lower court order stand for a couple of weeks enough finally the word has said were going to flock that law in. emily: is the reasoning as to why they're blocking the lawn what is it mean? >> not from the full-court. we got a dissenting opinion from three conservative justices and interestingly one of the liberal justices not giving any x nation at all. the three dissenters said they saw this as an affront to state sovereignty blocking the law. they would let it stay in effect. the court did not get any expo nation. emily: is this the end of the road for this law or does it still have an opportunity for

another life. >> is dozen opportunity. this just blocks the law while litigation goes through in the litigation will go forward before that federal appeals court. that law can take effect so they could still be sometimes curious spikes on the hands social media companies and their triggers are the ones that challenge the law. one other thing to note is that there is another, a lot like this in order. that one was also blocked by a federal -- federal appeals court. emily: give us examples, if this law is upheld, give us examples of what twitter and facebook would not be able to do that they do now. >> well, the law says you can hand not engage in viewpoint discrimination and what that means is you cannot say that is hate speech and because of his hands peace cryptic that down -- hate speech.

social media companies saying we would have to allow neo-nazis. you have to allow anti-gays. you have to -- really not have that ability to serve as a traffic cop on the platform. emily: ok. greg storm bloomberg news, thank you. continue to follow that law in the supreme court's next take. by now, pay later is a popular option for the youngest generation but as the economy takes a tumble, many are struggling to repay all of these loans. joining us now, the cfo of a firm, michael. take a listen to him earlier. michael: i think it is important that investors will understand how different we are from traditional financial institutions and we are different than the other competitors that are being

looked at in that particular analysis. go ahead. >> a lot of competitors have never seen a down cycle and we are about to experience some thing of the sort now. so do you think they're going to experience a wash out there? michael: you're seeing pressure on a lot of these players. you have people like a firm, who takes our mission and our mission is creating a business model that makes it so that we don't charge late fees, we don't allow consumers to have debt. these consumer-oriented positions in business have made it so that we don't have a choice but to proceed carefully. we have no inner business model to comes -- support consumers don't his back group. 70 basis points ahead of our long-term guidance. we stand out amongst all the other players. you have some players who have reductions to stay calm to avoid these credit losses.

we are very firm footed, adding to our team because economics are exceptionally strong position right now because of our world-class hiring. that's not an accident. we had to build that based on our business model. >> the other thing you mention is you are in a position to grow from here even in a tough environment. what can of hiring plans could you have ahead especially as you are seeing that some of your bibles are cutting their workforce? -- some of your bibles are cutting their workforce. >> earlier this month we hired engineers from a company that was having a hard time and they were winding up operations. we do this was one of the better markets for labor and now we have a strong need to build products. we are not constrained in terms of opportunity. we have enabled the world's fastest growing payment method and we are in the early beginnings of what our category will become so we need a big team of engineers to tackle the opportunity. we are excited to aggressively

grow our business again responsibly. emily: affirm cfo there. much more ahead. this is bloomberg. as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers.

so boost your bottom line by switching today. comcast business. powering possibilities.™ 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.

emily: welcome back to bloomberg technology, i'm emily chang in san francisco. it's another delay for elon musk's spacex. the federal aviation administration says it expects to complete an environmental review of the rocket makers texas facility in mid-june. another pushback which potentially delays the timeline for starship, elon musk's mars moonshot. this is the fifth time in fact that the faa has postponed the release of this report. for more on what it all means, ed ludlow here with me. so, is the faa buying time? ed: it's impossible to know. today is may 31 appeared i was waiting for this because it was the day they were supposed to make a decision and i wrote it down on a piece of paper.

i'm not embarrassed about that. the last time we were waiting for this was on april 29, so i sat here waiting and they delayed it until may 31. it's important because space x cannot make any progress on this starship plan, the testing phase until they get clearance from the faa. emily: you are on the ground in february, remember that vividly. and elon musk made it sound like starship was around the corner. >> at that time he basically expected but the regulatory side of things, the sin our mental review would be done in a couple of months. the hardware would be ready in a couple of months and he had an even bolder prediction for what would happen. take a listen. >> might be a few months longer. i feel at this point highly confident we will get to orbit this year. : classic. he said test flight by the end of this year but you don't know where we stand now because this

key piece gets getting delayed. emily: that was my next question, what do we know about starship? ed: you've seen the video, the explosions, the successful test, they have only really done hops off the ground. what starship needs to do is an orbital test flight. that is the big milestone where it reaches earth's atmosphere, comes back down and lands. that is what we are waiting for. the president and ceo said it could happen in june. it does not seem like that is the faa decision is not due until june 3. emily: you got spacex going from strength to strength pulling off successes. ed: as of friday, starling, their space satellite internet service is available in all seven continents, expanded to africa as of friday. that is quite an achievement and today, this may 31 really important day, 10 years ago, first unmanned dragon mission to iss.

two years ago, first man one, they are dominating this industry, but we really care about starship because it is the moonshot. emily: ed ludlow, thank you. you will keep us posted. well, today marks the first day on the job for the new ceo of match. he is leaving zynga, where he has been president since 2016. he is taking over. it's a pivotal time for dating apps, especially as we emerge from the pandemic and much of the world faces inflation. i'm joined by an analyst at evercore who published a deep dive on not only match, but also bumble. so what you think of this leadership and also coming from the gaming space to online dating is that a good thing? >> we will have to see. he has done a good job at singha. that is slightly different but also similar. shweta: two things that are good

is one, there are similarities between what he did at singha and match. portfolio assets in a global business, both in favor of what matches strategy is. the other thing that's good is she is not really leaving chris she will be part of the board and working as an advisor to bernard. and also, the ceo change is not a turnaround story. it is not like peloton where you have to rework everything. this is a functioning business. it's a strong leader in online dating in its category of global business and he is going to come in and it's going to be business per usual in the near term and as he settles and he will throw in his own strategy as he gets comfortable. i don't think it will be huge turbulence in the business as he comes on board. emily: let's talk about your new report, because you are basically saying that you think online dating and as we go through all of this, market

volatility, you think online dating is recession proof. why? shweta: largely recession proof. the beauty of -- or the challenge of being in consumer internet is none of our names are recession proof. they are certainly impacted by inflation, but when you compare it to the rest of our coverage, they are largely resilient. and our survey shows that almost 80% of those who are actively looking for a relationship are going to use the online dating apps just as much or even more over the next six months or 12 months. so that tells me that usage is not going to change. the second readthrough was that if there is inflationary pressure and there is a recession in the next six months, most of our survey respondents said they would be willing to pay $17 on average for an online dating app and that is where we are today. it's not that it will be any

less, the question is with that come from bumble? i don't think so. i don't think that may be the case either because bumble has several different webs. emily: when you look at the online dating web skate -- landscape and the options out there are bubble, tender, match, are they all more or less equal in your view or do some stand out over others? shweta: some stand out over others. what our survey also showed is that bumble is really gaining market share. and one of the biggest investor questions in the imprint was where is the market share? is bubble gaining shares or is it something else? our survey shows tender continues to be the leader in the market but bumble is gaining shares from eharmony. all of their apps that have been around but may not be as popular as bumble. so in the united states, our survey shows that tender is number one, bumble is number two and hinge is gaining ground to

number four back from number seven last year. so not all apps are created equal, even though the target market may be slightly different depending on your background. or one's background, but match and bumble are doing with the product is superior to some of the other apps out there. emily: engagement is one thing that getting people to pay for it is the other. you know, which of these do think is the best at generating that revenue and getting users to pay up for something that many of them think should be free? shweta: great question. almost all of these are premium models at different prices and different price points. our survey shows most users are willing to pay for tender, eharmony, match, bumble and hinge. some of the reasons for eharmony is because of the demographic. they are older age folks who may

have greater savings and are more serious about relationships. that is when the convergence is created in those apps. at the same time on average our survey shows it's about 30% conversion which may be is a little skewed because i know that bumble's conversion rate is lower. but the point still holds that there is a long runway for growth in terms of how many users use for free and how many the potential there is that they could convert. the other thing i will add is it is not only sue script and, they are also adding all the cart services. you can buy a feature in terms of just paying for a monthly subscription and pay-as-you-go. as you use more features, that is a new shepard emily: what are the risks to online dating? shweta: the risk is that the reopening across geographies is not the same, for example, japan is the number two market and that has been very slow in terms of seeing the reopening and people actually meeting in

person. that has been a drag because bumble and tinder are really big in japan. so one of the biggest risks is reopening curve across geographies. the second risk is that not all demographics are the same. so if there is inflationary pressure it is possible that some apps may loseres over others. and that will be the question of which ones people decide to keep versus which they don't. emily: analyst at evercore, thank you so much for joining us. alright, coming up the crypto winter continues. is it time for investors to get out or double down and build a bigger stake for long? we will discuss next. this is bloomberg.

emily: time now for our crypto report and bitcoin higher for a fourth day, the bouncing back above $30,000 and then some as a recovered from a sharp decline in the last three weeks. still down 16% in may. our crypto contributor here with more. we look at the broader equities picture, we are back where we started at the end of may but with bitcoin still down. sonali: what goes around keeps going it down, so when you talk about bitcoin, yeah, the price movements here on one hand, you have a lot of people saying ok, is time to build.

time to put our heads down and really make projects that will last longer term. bitcoin has risen in the last week. it has not risen past 32,000, but it is above the 30,000 level. we are down on the month 16%. it has not moved much at all. the question moving forward will be about correlations. i want to draw attention emily to a theory him. why? because it is also down and not just on the month but on the because well, so you can see the last week between the two large cryptocurrencies. the questions moving forward here are how will they react in relation to each other and react to the rest of the crypto universe. and reaction to a lot of the macroenvironment we have been watching so closely this month. we have been talking about those venture funds and how they deploy money in this down market. emily: thank you very much. we will hear more on this from police, founder and managing partner at the venture firm

still mark, who talked about all of this and more with my colleagues matt and kaylee. >> bitcoin companies historically have thrived in crypto winters. it is a time to build, a time to be focused on tech and bitcoin is that. >> we've seen a bitcoin of moving past the market share cap. fascinating that bitcoin can be 45% of the market cap, all crypto and we are talking about 20,000 coins. is this not an existential crisis? alyse: for crypto? >> for bitcoin, for bitcoin. alyse: for bitcoin. i think bitcoin's mascot is the honey badger. and what that represents to the community is bitcoin is a sound tech. it has not cared about what is happening around it. it operates independently. in fact that is the purpose of the protocol. bitcoin was invented, was

emergent after two decades of work on how to build an open and fair financial system that could serve the under banked and the un-banked in the same way that it served the wealthy and privileged. so bitcoin and bitcoin builders are generally really heads down. we think something interesting that is happening today that you see reflected in the markets in the crypto markets and bitcoin market, as well as the broader macroenvironment is that there is a collision of two things. bitcoin is cyclical. it's cycles have been historically driven by having that effect. we see a three to four year cycle for bitcoin which has an impact on the rest of crypto of course. but now we have also seen a macro economic downturn. bitcoin trades as a risk on asset currently. i think that over the long-term, that will change, but today, that is the case. so these forces are at play in how we see what we see happening with bitcoins volatility. however, if we look back

historically to 2008 and another example of a macro challenging macroenvironment, what we saw then was that new paradigms introduced by cloud and mobile were really powerful tailwinds for fledgling companies. >> are we going to see by the way any new way of -- is proof of work going to be a thing of the past? or is it still the only trustworthy way to maintain the blockchain? alyse: it is a thing of the future, so it is the only trustworthy way to maintain a decentralized and fair payment and financial system. and that is bitcoin. the economics of mining, the economics of proof of work incentivize investment, major investment in sustainable energy. we know that today, the sustainable energy represents about 58% of all energy use or mining. and that is 60% year-over-year

growth, so 60% increase from q1 2021. now the fact that bitcoin mining has been able to so quickly transition to a sustainable energy source as a predominant source, i hope will be an example for other sectors to follow. emily: alyse there, founder and managing partner at still mark. coming up, the future of cloud growth. we'll talk about how market volatility is impacting the crowd and the big trends in software with partner jerry chan. this is bloomberg.

>> we are seeing that the market has volatility in different parts of the world but technology is seen as helping those nations address supply chain shortages of customers better, get online digitally and so demand for cloud remains strong for us emily: google clouds thomas their forecasting growth in the midst of choppy market conditions. 2021 was a banner year for cloud investing with total funding and hitting $50.3 billion. our next guest has a forecast on where all of that funding will go. in this week's to economics, i want to bring in jerry chen from greylock partners. share your forecast with us. jerry: thank you for having me back. i think they are right, in a volatile market economy, cloud is going to see increase both in market revenue, 200 billion run rate for all the big three or four providers, but also for

startups. we are seeing 50 billion plus last year in cloud investment. but i think that the emphasis you'll see going forward is a lot of security continuing to be a big deal. number two, cost savings. as we see the market, governments, developing tools will continue to grow. we are focused on how to save customers money. emily: so how do you think this market volatility will impact the broader landscape? we heard ceo thomas curie and there, but it is hard to believe that this is not going to impact how big customers are spending their money. jerry: i would say big customers increased 20% year-over-year. they customers will continue to spend and like i said earlier, that two or three areas we are seeing around is security for sure being over $7 billion in ec money going to security startups. and cloud customers will

continue to expand security companies. for example, one of our companies has raised a ton of money last year for email and data security. number two, i think cloud customers will use that money on things like data. so snowflake continues to do well on the public market. data break continues to do well in the private market but startups in the data break info system will be focused on how to save customers money. i think the big three continue to grow, security and data and ai continue to grow, but increasingly, it focus on customer spending and enterprise spending an average cost over the next two or three years will be the big focus. emily: how would you characterize vc sentiment. we have been hearing from vc's, batten down the hatches. you might have to take a valuation haircut. he might not be able to raise her next round when you thought you would. how would you characterize your sentiment broadly and then that sentiment when it comes to cloud? jerry: as you look at the data

from carter, facebook, other data centers out there, series a valuations are down 20 percent from a year ago. financing valuations are down from a year ago. for sure, we are seeing a tightening of the venture market towards a bunch of ideas, but my personal sentiment, gridlock's sentiment and the sentiment of our companies here is look, if you have a distinct value add like a hard return on investment or a cloud company, that is emily, they are securing the company through security products, spiral products, improving the digital business of the company, like ai or machine learning to transform a business. or three, saving your customers money. if you can reduce cloud spend, reduce storage spend, reduce data spend as a start up, you're going to have two pop to the top of the wish list. so the past two or three years,

we saw a lot of great ideas thrown out there, but in the next two years, we will see fewer and fewer companies really focus on saving money, improving the digital economy, because if they are doing well in this market, showing a hard roi, you're going to get more budget and more awareness for customers. sears seeing a separation in the market and great companies will get more of the customer spend and tier three companies will struggle to raise. they don't have a hard line with the customers. emily: would you say that trend extends to hiring and layoffs? i mean, because we have seen hiring reese's and layoffs -- hiring freezes across the board. jerry: a lot of companies are looking at burn rate's and realizing that there economics were just upside down. so the burn rate is not sustainable. when the capital markets are right now, they are not guaranteeing their rates or valuation or even flat valuation, so we are seeing a

lot of companies say i would rather be slightly conservative, save my money for two years of runway until the capital market and metro market is a little bit more predictable. i think just like the public stock market, private markets and startups hate that. until we have a lot more absurdity -- certainty, a lot of startups will be more conservative. that said, if there is a good roi on their spend, on sales and market, they are going to continue to hire excel trends. continue to hire engineers. we need more clarity on where the market is going. emily: jerry, partners, great to have you back with us. thank you for giving us a few view on the cloud ahead. and that does it for this edition of bloomberg technology. we will be right back here tomorrow. i will be joined by the founder of girls who code and david could patrick to talk about that new supreme court ruling on the

texas social media law. that is tomorrow. this is bloomberg. ♪

another crazy day? of course—you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want —your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company.

bring on today with comcast business. powering possibilities.™