>> 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 and this is "bloomberg technology." coming up in the next hour, meta falls after reporting its first-ever decline in quarterly sales. added to the list of social platforms warning an ad back will hurt the bottom line. in the division building the metaverse, reality labs lost $2.8 billion in the quarter. the senate passes a bill to reinvigorate the u.s. chip industry. but pc sales are slowing as consumers get out of this pandemic mindset. how will this change how silicon valley does business abroad? we will discuss. more bad news for coinbase. cathie wood's ark sold $75 million in shares after the sec announced an investigation into trading activities. why are shares up double digits?

we will explain. first i want to get a look at the markets. big tech names, meta and qualcomm porting after the bell. ed ludlow here to break it down. ed: meta, its first-ever sales decline. the stock down 3.5% in after-hours. the option market priced and a lot more volatility. -- in a lot more volatility. a muted reaction. lots of questions around the road forward in terms of control and the restriction side of the company in terms of costs, the advertising market slowing down. i'm also looking at other movers aftermarket. the chip industry a big focus this week, qualcomm lower in after-hours after giving a tepid forecast to the current period that once again has us concerned about consumer demand for electronics. qualcomm a big maker of chips for smartphones. ford absolutely smashing it on the top and bottom line. they boosted their u.s. sales in

the second quarter at a time when the industry was seeing declines, saying there was equal demand for both the combustion engine side of the business and the ev side, but there are headwinds coming in the form of inflation and rising commodities costs. on top of all that, we are bracing for earnings. you throw the federal reserve in the mix. the nasdaq 100 up 3.4%, best day since april 2020. philadelphia semi conductor index surging, supported by the fed raising by 75 basis points and expected fed chair jay powell to say there is no current recession, although the data telling the fed is we are seeing some slow down in the economy, but right now the focus is on fighting inflation. little movement in the 10 year yield. on other ends of the curve we saw movement. bitcoin surging. wednesday morning bitcoin was down around 20,000 u.s. dollars a token, now we are at 28,000,

$23,000 per token. before you get into the main story of the day, what a weird week it has been. remember when snap on july 23 basically scrapped guidance, the world changed? this is meta. it drops off because of concerns the ad market is doing badly. alphabet, parent company of google, gives us confidence that the ad market remains intact. i guarantee that chart will likely change overnight and that we will see meta and other social media stocks change throughout the week. we are see sawing between the strength of the consumer and ad market. emily: let's bring in aprons a bull analyst at insider intelligence as well as our own bloomberg news ticket of editor tom giles. let's break down these meta results. they don't look good.

engagement came in slightly better than estimates when you look at daily active users, but revenue dropped. the first quarterly sales decline ever. tom: thanks for having me. the thing people are focused on is the outlook for the third quarter, and it's not good. it is going to come in well below analyst estimates. the miss on the revenue side, some of the active users gained on the daily but not on the monthly. it is a mixed picture there. the shares are down. people are not looking at this and running around like their hair is on fire. still, it's not a great look. mark zuckerberg has made this big david for the metaverse and talked about we are going to lose money on -- pivot to the metaverse and talked about we are going to lose money on that. around the same time we get the war in ukraine, this sense of a slowdown in the global economy, and advertisers really pulling back. we saw it yesterday from

alphabet and seeing it again today. the cfo for just a few more weeks him out and said we see advertisers facing headwinds and there is a lot of economic uncertainty and their pulling back. same messages we got from the cfo of alphabet yesterday. emily: let's talk more about this. we are looking at shares there. zuckerberg saying meta's products are continuing to grow in a challenging macroenvironment. challenging macroeconomic environment. the committee saying they reduced hiring and overall expense growth plans this year. what are your headline takeaways? >> i remember years passed when mark zuckerberg would start out his quarterly earnings recap with phrases like "it was another good quarter" or "it was another great quarter." we are not seeing that anymore

for the foreseeable future when it comes to meta. this year-over-year quarterly drop in revenue -- i think it was pretty much baked into expectations by this point among investors. it is really showing how quickly meta's business has deteriorated in this uncertain economy that is affecting all of the digital ad supported businesses. you mentioned google, snap, twitter. we are all seeing them having difficulty in this economic environment. one thing that stood out for me with the guards to meta was the drop in ad prices. we saw a 14% drop in ad prices in q2. that came after a q1 drop of 8%. that really i think factors into what we are seeing going on with meta's platforms now, where the advertisers, that is good news, the ads are getting cheaper for

them, but it does not add up to very much revenue. as tom pointed out, we are looking at q3 and q4 now and are not expecting anywhere near the performance that our forecasts had led us to predict, even as recently as a couple months ago. emily: the current cfo, moving on to become chief strategy officer, susan li becoming the first female cfo at meta ever. this is scuttled to be sheryl sandberg -- is scheduled to be sheryl sandberg's last earnings call. does facebook have the bench to grow this company? tom: you've still got other leaders there. you've got a lot of people who are around zuckerberg. he is the guy making the decision at the end of the day. if people start to lose patience with him, there is nothing investors can do given his ownership, given his control of

the stock in the company. he really does need to bring smart people around him, especially when you see sheryl leaving. she built this advertising business into this monster. not doing so great right now, but she leaves quite a legacy. emily: this company is making an enormous pivot. reality labs lost $2.8 billion in the quarter. this is a bet on a metaverse and a future some don't believe is even possible. are these investments, these losses, worth it? debra: that is the big question. getting back to the idea of mark zuckerberg being in charge, this is his call. he decided to pivot the company toward the metaverse. he is building this company toward that future ambition, which we don't see hardly any revenue potential from for years.

at the same time the core business is suffering. i am a metaverse skeptic. i have been for quite a long time since the days of virtual reality. i think there is a lot for meta to prove with the metaverse for the potential of consumers and marketers to engage in it. we saw the ftc is now starting to investigate an acquisition that facebook made in the metaverse realm. meta is having so many challenges in front of it, on so many fronts. this is the quarter where i have become more concerned about the company that i think i have ever been before and all the years i have covered it. emily: the ftc is trying to block meta from buying a vr company. there are already antitrust issues in the metaverse that does not exist yet. and mark zuckerberg seems to be

pursuing the same strategy, which is buy, not build. tom: exactly. the ftc has to be careful here. they have come under a lot of fire in recent years for not calling out facebook when it bought out its potential competitors. it bought instagram for $1 billion. it bought it when instagram was tiny and nobody batted an eye. whatsapp they paid a lot more money for, a potential competitor. the ftc has been criticized for not calling out facebook and not saying we need to take a close look at these acquisitions because you are taking out someone who could be your competitor. you have to bet they are looking closely at this deal. emily: either way, big changes in store for meta, big executive leadership changes happening in november. we will of course be watching. bloomberg's tom giles, thank you, as well as debra.

always great to have you as well. meantime, apple just poached a 20 year veteran of lamborghini to work on its electric car. he will join the project which has been under wraps for years. the apple card is being designed by hundreds of former engineers from tesla and other automakers. apple plans to launch a car by 2030. coming up, the senate passes a bill that makes the u.s. less reliant on ships from abroad. -- chips from abroad. how this could dramatically reshape silicon valley's relationship with china. that is next. this is bloomberg. ♪

emily: qualcomm earnings is the

latest signal that there is a change in consumer habits. the biggest maker of chips for smartphones reporting and earnings miss, reporting and lackluster forecast for the rest of the year. the senate approved a $52 billion bill to boost chip manufacturing in the u.s., which relies heavily on parts from overseas. but this is a my conductor industry is in for a rough patch the next couple years. a research firm slashed semi conductor -- its semiconductor sales growth forecast from a we saw in 2021. -- what we saw in 2021. the pentagon is making contingency plans if house speaker pelosi makes that trip to taiwan, though they don't think china would attack her plane. they say the speaker is entering a hot spot. china considers taiwan part of its own territory, a long source of controversy for decades. our managing editor out in tokyo joins us now to discuss.

there is a lot going on here. what do you make of this lucy visit to taiwan -- pelosi visit to taiwan? >> very controversial at this point. she has ended up in a very tight spot where there are tensions on both sides. if she decides to proceed with the visit, that will cause problems with china. but at this point it is hard for her to back down and pull out of a visit that she has been thinking about because it looks like they are stepping back or retreating from this issue in china. clearly she will put pressure on biden during their phone call to try to get him to apply pressure to nancy pelosi, sidestepping the fact that he doesn't have control over her actions. emily: meantime you have this chip pact that seems to be heading to biden's desk. this is going to potentially massively reshape the relationship between china and the rest of the tech world. peter: that is the hope of the

u.s. are we there yet? it has taken three years to get to this point, where the senate now past the legislation, but the house has to sign off and reconcile the two bills. it is $52 billion, about $39 billion in financial assistance along with another $13 billion for training and research. $52 billion sounds like a lot of money, but tsmc, taiwan semi conductor, will spend $40 billion to $44 billion on capx just this year. the chips act is over five years. it is modest in the grand scheme of things. it signals the u.s. is uncomfortable doing this kind of industrial policy. it historically has not done it, but this crisis we have seen in the chips industry with chronic shortages that knocked out auto production in particular has forced them to rethink how they do this. instead of focusing on the

efficiency of the chip industry, they need to focus on resiliency. emily: meantime, you've got another potentially big shift happening and the chip industry itself, qualcomm missing estimates. we are hearing from the ceo of qualcomm right now on their earnings call, saying the phone market is smaller than forecast this year. we talked so much about the lack of chip supply. are we now going to see a glut of chip supply? these cycles do happen in the chip industry all the time. peter: that is the big question, we do go through these cycles. we have had shortages for so many years. wait times are still very long. the signals seem to be that we need more production in chips, but qualcomm is an early sign that they are seeing a slowdown. there is a caveat to that, that they focus on the smartphone market right now. you have seen smartphone demand softening as consumers are hit with inflation and rising prices

in other areas. that may be a qualcomm specific issue. you may still have these chip shortages in the rest of the supply chain. emily: what are you watching? the supply chain continue to evolve. we have apple coming up tomorrow, where we will get more insight into the supply chain. peter: the industry is closely watching wait times around the chip industry and exactly where those wait times are. we've seen a bit of a loosening in terms of the ability to ship these chips. that helped automakers. they are beginning to see signs of improvement. tesla talk about improvements in supply chain, but it is not resolved at this point. this chips act will not address any of this because these chip plants will take at least two to three years before you can get any production online. it will not address the short-term problem. emily: peter elstrom in from tokyo. coming up, instagram is being

attacked on its own platform by some of the most powerful figures in social media, the kardashians. could this be another case of the kylie curse? the meta earnings call underway. ceo mark talking about the company's hiring freeze. take a listen. mark: our plan is to steadily reduce headcount growth over the next year. many teams are going to shrink so we can shift energy to other areas inside the company. ♪

emily: now going viral. meta platforms is facing backlash after some of the most influential figures on their platforms, the kardashians, are speaking out. kylie jenner and kim kardashian specifically speaking out against recent changes to facebook and instagram, making both platforms look and feel more like tiktok.

the pair have a combined 686 million followers on instagram alone. instagram's ceo even posting a video explaining the move, which some believe puts meta's interests above their users. sarah frier had a back-and-forth with them on twitter. let's talk about what kim and kylie said, don't make instagram look like tiktok. sarah: make it so i can see posts from my friends again, please. kim kardashian added, pretty please. i think the kardashians have another interest, which is they have built their businesses via instagram, via building that relationship with followers that makes people want to buy their projects -- buy into their projects and focus on everything happening in their lives. it is part of reality tv. they really lean into that. the changes happening on

instagram and facebook are deprive or tie's and those follower-friend relationships -- are de-prioritizing those follower-friend relationships in favor of something like tiktok to retain young users and fend off this competition from the fastest growing app out there. emily: you had a back-and-forth with adam mosseri on twitter and talked about how him and kylie are saying they want this, instagram is making changes based on what users seem to want. talk about your back-and-forth. sarah: i pointed out that adam mosseri's explanation, this video you talked about, was getting a lot of backlash. he said i hear a lot of backlash all the time, people are pretty vocal when it comes to hanging on what i have to say. i said, executives of social

platforms have to figure out if they want to listen to the loudest voices, what their users are saying, or if they want to listen to the data. facebook has always been erring on the side of listening to the data. i got a lot of pushback for my comments. people said, how is this data making sense if this is what facebook and instagram are showing to us? of course we are using reel more, that is all we get to see. the design of a platform has a lot of impact on what users choose to do because these platforms are getting more and more passive, less and less about what we choose. emily: i wonder, does it make sense to keep them more differentiated? is that a competitive advantage or does instagram just follow tiktok? sarah: another thing adam mosseri told me, which confirmed one of my suspicions, is a lot of this friends and family conversation is moving into the other parts of their app,

instagram stories, instagram direct messaging. he said that is where we are seeing it. i feel the reason they need to stuff the main instagram feed with reels, their tiktok copycat, it because people are not posting anymore. when is the last time you posted on your main instagram feed? it's like a big list now. people are posting more in stories because it feels less like part of their permanent record, less like it has to be a huge life event. something we saw happen on facebook five years before, where people are now posting on facebook mainly if they have something big to cite like a new job -- to say like a new job or wedding, as opposed to the mundane updates. as we grow our base of followers, it just seems less -- that audience seems less worthy of our mundane updates. emily: who is winning? sarah: tiktok is definitely

winning right now. that is very clear. in meta's earnings today, we see a slowdown in advertiser spending. that is not just about the economic factors they are citing, that is about this sea change happening at the app that is causing people to use them differently, or may be abandoned them. -- abandon them. they have to make this work to fund the metaverse down the line. emily: sarah frier, thank you so much for your analysis. coming up, spotify giving investors estimates. we talk about how they seemed to avoid the fate of snap, next. this is bloomberg. ♪

emily: welcome back to "bloomberg technology."

we will talk about earnings now. a lot to unpack. i want to dig into spotify, which somehow avoided an ad slowdown in the second quarter, escaping the fate of other tech stocks like snap. i want to bring in bloomberg's ashley carmen, who covers spotify. why did spotify somehow will out of this? -- pull out of this? ashley: they did not give us a full reason as to how they avoided this. they did say maybe it was this quarter. it seems they are looking over their shoulder more. i spoke with their cfo earlier. they said q3 they expect a slowdown, although still growth. they are looking over their shoulder. it sounds like they are riding the wave a bit here. we are talking about a lot less revenue here, hundreds of millions of dollars versus billions as far as the tech stocks go. i think it is a bit of a different scale as well.

emily: i'm curious what is happening with spotify. perhaps on a smaller scale is some sort of signal about what is happening on a larger scale as well. you see a platform adding users, but growth margin declining. is that a concern? ashley: the last quarter for q1 earnings, growth margin was all anyone could talk about when it came to spotify earnings. the stock cratered to the lowest levels it had to been. investors were concerned about the margins because spotify had been making all these podcast investments. investors wanted to say when will those gross margins go up? in this quarter we were not expecting them to improve drastically. the growth margin actually dropped. spotify said that is because they are seizing production -- ceasing production of a bluetooth spotify remote for the

car. that said, stock is up-to-date. -- is up today. they said they expected their margins to not drag so much from the podcast investment going into 2023. we will see if that long-term vision holds true. emily: you of course still have some artists who won't put their music on spotify. now you are seeing some podcasts leaving spotify. what is happening there? ashley: earlier today i published a story about a show called "the pitch," this original show that spotify acquired in 2019, and how the host of that show bought it back from spotify and it will lunch independently. -- launch independently. we saw another gimlet original show ended its production in june. "the getup," spotify's attempt at a radio show morning format also ended.

i'm not entirely clear what is going on there. it's interesting to see all three of these shows, clearly they had leadership shakeups and promotions. something is clearly going on with their content strategy, it is unclear what. emily: i wonder if this means perhaps this exclusive content strategy is not necessarily always working. ashley: i think that is the big open question. joe rogan with their huge exclusive deal, he's still exclusive to the platform. everyone will be curious if and when that deals come up, if it will be renewed. emily: right now it seems to be joe rogan and everyone else. [laughter] ashley carman, thank you. i will keep talking about earnings. i want to bring in mitch's take on meta and results. not great across-the-board.

we saw daily active users coming in slightly higher than estimates. ad revenue light, overall revenue light. a big loss in reality labs, $2.8 billion, where they are investing heavily. what is your take away? mitch: we don't ow facebookn -- don't own facebook. i think the stock was up a little after hours. i would tell you that the expectations were pretty darn low on it. i think facebook has some issues under the covers. you see the kardashians out recently tweeting how she wished and stood would stop copying tiktok. -- wished instagram would stop copying tiktok. they can't help but notice how

many ads there are. i think these guys are running for their money in this younger demographic. i think snapchat still is trying to use macro as the biggest reason. i think they have another reason, that their users are on other platforms. emily: just how serious do you think facebook/instagram/tiktok's problem is? mitch: pretty darn serious. full disclosure, we are bytedance investors, which owns tiktok. it would be fascinating to know. when the public starts to know how fast bytedance and tiktok are growing, i think there will be a lot more written about how much pain these companies are experiencing. just go ask a bunch of 20 to 30-year-olds how much time they spend on tiktok versus

instagram, versus facebook or snapchat. that will answer your question. emily: the question is, is the digital ad spend shifting dramatically? it seems there is an attention shift, but is the money going to follow? mitch: i was speaking to some people who do bytedance and tiktok research. i think a lot of the tiktok ad budgets are still in the experimental phase. i think they are moving into much bigger phases. relative to the size of facebook, tiktok's u.s. business is not that big yet. there is obviously a huge amount of room to expand. emily: you are also an investor in alibaba. they are exploring this primary listing in hong kong. how are you thinking about chinese tech companies right now? there are so many complicated dynamics. mitch: [laughter]

that is an understatement. first on the alibaba question, the market as of yesterday, it was kind of a muted response. it was a downmarket. it wasn't huge. i think the biggest advantage to alibaba, as i understand it, being the primary listing in hong kong, not in the u.s., is they will have access to the china connect, the hong kong connect. i saw one research analyst say anywhere from $6 billion to $25 billion and demand coming out of the stock. it is cheap. so is every other chinese internet company. it will either prove right now to be the best buy opportunity or probably dead money. i don't really understand the zero covid thing.

it appears to me these people are taking their economy and they don't need to be. your guess is as good as mine as when that ends. we own some alibaba. have not bought more, have not sold it. i do think multiples, the multiple someone will pay for a chinese equity, is going to be impaired for a long time. all of a sudden they get more government approval, the government looks friendly. that does not mean in two years they change their mind. emily: hopefully for you not dead money. a capital firm acquired a minor a stake in lead edge capital. how do you see lead edge differentiating itself from the pack? where do you think you will find the next uber? mitch: that's a good question. how we differentiate ourselves is unique from most funds.

most funds make endowments, pension funds, universities and insurance companies. 95% of our capital by number of investors is world-class execs and entrepreneurs. we leverage those people to help our companies grow faster. someone might be looking for a female audit chair or customer intros, things like that. the whole lp base has grown via word-of-mouth over the last decade. we think there is a ton of interesting opportunities in software and our lp base can help enable companies to go fast er. we have been fortunate to back good companies. a whole host of companies.

it was said best on a quarterly call yesterday, they said the guidance was good, the numbers were good. they made the comment at the end , spending as part of a percentage of gdp is going up. as it goes up, all these software companies will continue to rise. i'm not telling you -- there may or may not be a recession. there probably will. they will slow down, but they came to grow back again. i think we are in the early stages of a software super cycle that could last 20 years or more. emily: that is potential he a bright spot if indeed you are right. mitchell green, always great to have you on the show, founding partner of lead edge capital. meantime, twitter is leaning harder into cost-cutting itself and remote work. the company cutting back on physical office space in a number of cities, including san

francisco, new york and sydney, this in a memo to employees paired twitter said the move does not affect current headcount of employees. there is that online going loss -- that ongoing lawsuit with elon musk. as coinbase and kraken are under increased scrutiny by federal agencies, is decentralized finance the solution? we talk about that and more with a coo, next. senator joe manchin said he struck a deal with majority leader chuck schumer on a tax and energy policy bill, breaking a deadlock on the democrat's legislation to enact major parts of president biden's agenda. huge news. we will be talking about that more on bloomberg television. this is "bloomberg technology." more after the break. ♪

emily: time for our crypto report and the crypto winter has been brutal. let's see how defi is faring. sonali basak here with more. sonali: the reason we are talking about this is a lot of the big withdrawals you have seen and the big issues you have seen with regulation are with the centralized platforms. let's look at defi. it is down on the year, about 62%. that is more than you see in bitcoin. at the same time you are seeing a big hop back up this month. about 24% higher. even today alone we have seen bitcoin jump on the heels of the federal reserve interest rate hike. you have seen the defi index, the bloomberg galaxy defi index hop up even further. yes, a big drop off, more than

60% this year, more than in bitcoin. the defi index we are looking at, we will be diving deeper into. what is it made up of? just a lot of companies and projects that have held up more than you have seen in other areas in centralized finance. the big question here is what is the future of defi? is it the answer to the industry's problem? does it start to hop up even more than we have seen? emily: we will dig into this more. i want to bring in the coo of the decentralized exchange which allows users to trade cryptocurrencies without the involvement of centralized third-party like other platforms like coinbase, kraken. first, we saw cathie wood selling some coinbase shares. there is a lot going on here. investors trying to interpret some mixed signals. what is your take on what is

happening in cefi versus defi and where is this all headed? >> thank you for having me. while we at uniswap believe in crypto broadly as an asset class underlying technology, uniswap in defi is about decentralized rails for financial activities. a centralized exchange as you know operates the same way that a traditional exchange does it, but with digital assets. that is a critical difference. it means they are taking buy and sell orders, managing risks, whereas income trust -- whereas in contrast uniswap is like self-executing code. you have the code at the core of email and applications like gmail on top of that help use those particles. what we have seen in the past few months is risk management challenges at some of the centralized players that have

struggled. and also some internal risk control challenges. in contrast, decentralized protocols don't ever touch customer money. they don't have customer accounts. that means that when you manage risk is by having effective software audited and battle tested. in the past few months there has been plenty of volatility. defi protocols have proven themselves generally resilient and have not been hacked and have performed. emily: let's talk about this more in terms of the customer itself. there is a lot of talk about how customers get paid back more fairly when it comes to defi rather than cefi. is that true? to the extent that it is true, what is allowing that to happen with more certainty? mary-catherine: it is a completely different business model. when you are trading with a centralized exchange, their entire business model is to make the spread has the same way for a traditional market maker, to

make the spread on a transaction, as well as transaction-based. whereas in a decentralized exchange, there is a two-sided market place. anyone can become a market maker. liquidity providers then get their share of the fee from the trades execute it on the platform. uniswap has no revenue associated with the decentralized uniswap particle. all of those fees are essentially flat fees at a pre-described rate, then redistribute it to liquidity providers. you can change on a decentralized exchange and on uniswap for 25 basis points per it it adds a material difference. what you do have on defi are network fees, like gas fees on ethereum. right now those are low because of low activity. the fundamentals for defi are different. it is using open source code

that has originally been performed by intermediaries. i think what we have seen in the past few months is how that becomes different, how the benefit to the user is very different than in the case of market volatility they still can prove resilient. emily: what are the lessons you have taken from this very tumultuous time about how to make defi more resilient? mary-catherine: most important is to anticipate how to protect your users and how to ensure security, that if we want to grow at this point, all of defi is only about 4 million users -- in order for this technology to get broader mass adoption, we have to explain its benefits better. but then we also have to ensure to make it simpler and easier to use. the part of centralized exchanges is you have on ramps,

you can exchange dollars for crypto. they buy sports sponsorships, so you have heard of them. this is a way to ascribe greater awareness of defi, so people understand those benefits. the second thing i mentioned is it is an opportunity to introduce risk management measures and screening that can help people understand the risk they are taking, even if we don't yet have regulatory clarity at a great level of detail. emily: the uniswap chief operating officer, along with our sonali basak. thank you for helping us better understand a very complex topic. appreciate it. coming up, more updates on meta 's earnings. stay with us. this is bloomberg. ♪

emily: tech stocks rallied as jerome powell said the fed will slow the pace of rate increases at one point.

let's talk about that and wrap the tech results of the day with our own ed ludlow. you are listening to the meta call. ed: the take away from the fed was we see no signs of recession, and yet on the earnings call mark zuckerberg, ceo of meta, had this to say. emily: well, looks like we are having trouble pulling up that. sonali: -- ed: he's talking about a slowdown, that they see an economic downturn. that is another word for a possession. the main thing is that budgets from advertisers are getting smaller. no matter what meta says, that is going to hurt them. emily: the question is what is the broader takeaway? is this a downward -- the start of a downward trend for sales, first quarterly decline ever? ed: this has been a weird week. emily: where is my sound effects, ed? [laughter] ed: you have alphabet citing

lots of search for travel -- saying lots of search for travel, but they also said travel partners have been seeing headwinds. lots of people are google and where to go on holiday. advertisers are pulling back. budget is getting tighter. they are giving the opposite view that the strength in the market is not there. we are getting inconsistency. we are seeing it in the chip sector as well. emily: we are also talking about misses in beats by very small margins. alphabet's ad revenue beat by a small margin, facebook's ad revenue missed by a small margin. that sends a big signal to investors. you wonder if they are over interpreting those signals. you wonder if alphabet is in a better position than meta. ed: yes. there seems to be strength in search. with alphabet, youtube saw growth, but nothing like a year ago. if there is a shining light for

meta, this time a year ago, what was happening, apple was changing its ios settings. that is when we started to see the pain for meta and ivory kaisers around tracking on the platform -- meta and advertisers around tracking on the platform. the comparables to last year -- emily: we will be all over apple tomorrow as well as amazon. apple and amazon, the next to report. ed ludlow, thank you. that does it for this edition of "bloomberg technology." we are also going to be talking to the qualcomm ceo on the back of the results in addition to apple, amazon, and so much more. don't forget to check out our podcast wherever you get your podcasts. i'm emily chang in san francisco. this is bloomberg. ♪