>> 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. ryan cohen sells out. shares of bed, bath & beyond are plunging after the meme stock idol sold his stake. we will explain why he did it. some of silicon valley's richest executives and investors are campaigning against multifamily housing coming to their neighborhood including marc andreessen, the investor who just gave controversial we work founder adam neumann a huge check to re-envision rental housing. and last year was the most lavish on record for executive paychecks by almost any measure. more than 30 public company executives were paid $100 million in 2021 according to the bloomberg pay index to we will dig into all of that in a moment but we want to get a look at the

market stocks ending in the green after swinging between gains and losses. cisco rising after a an upbeat forecast and bed, bath & beyond sinking on the back of a filing by ryan cohen's firm. christine is here to tell us about the day. >> it is all about the dip buyers today. not a whole lot of conviction out there. i knew the absence of volume and clear -- in the absence of volume, definitely higher. let's take a look at the tech complex here. green across the board. the nasdaq finally delivering a gain. the first one in three days. semi conductors have been battered for the last two days but they are ending the day higher by 2.2%. as you mentioned, bed, bath & beyond missing out on this rally after the about ryan cohen hunting out of the stake of the company. that has made for a plunge of nearly 20% on the day. that is the biggest since june. the good news is it is not

nearly enough to undo the nearly 400% rally we have seen since july. that is going to hurt for retail traders who have plunged into the stock here. one thing to keep and i on the tech complex, having a good day today but valuations. keep an eye on those. definitely creeping higher for the nasdaq 100. currently trading at a price multiple of 24. well above what we are seeing for the s&p 500 around 18. we have talked about investors thinking about the asset rotation and loading up on treasuries because those have reached steeper levels this week. we have seen the tech valuation creeping higher. that could be what tips the scale back into treasuries and out of these expensive tech stocks. emily: let's get back to the bed, bath & beyond stock. the latest meme stock target tried -- stock are get sliding

-- and called for a sale of the company. shares have plunged now that cohen has taken his stake to zero. i went to bring in john edwards. what sort of intel do we have on why ryan cohen sold out here? >> it looks like he lost patience with struggling retailer. he came in back in the spring in march thinking he could effect a turnaround. it looks like he has lost patience with that and bailed out. he made a lot of changes. he brought in three independent directors. in june as the patient started wearing thin, -- the patience

started wearing thin, the thought then was cohen thought bed, bath & beyond should sell itself entirely or sell the buy buy baby unit. it looks like he has run out of patience and bed, bath & beyond has run out of time with him. emily: walk us through the timeline because earlier there was the filing from rc ventures. they might sell. we learned they have officially sold out. is there any potential for regulatory scrutiny? >> some shareholders have made noise about filing complaints about the way cohen has handled this. he came into the stock with a lot of fanfare. there was the filing that was made on tuesday but disclosed yesterday that they were

thinking about getting out of their entire stake and the new filing they have indeed taking their stake down to zero. a lot of these retail investors who piled into the stock are certainly upset with cohen cohen at this point -- with cohen at this point and some might be looking to take action. it is unclear if he has done anything wrong per se. emily: we will keep following that. bloomberg's john edwards. thank you for that update. billionaires living in one of the wealthiest codes in the world are pushing back on plans for more housing. top investors and executives from apple, phase, google and more want to stop california from allowing businesses in multifamily housing in -- one of the most vocal was marc andreessen. talk to us about what is going

on here. >> there is this interesting moment about where public comment in the town of african. -- even though marc andreessen has been vocal about the need for states like california to build more, turns out when people propose changes in the town of atherton, the neighbors get very upset to atherton is the richest place in america. that is why the people who are upset tend to be some of the biggest names in tech. emily: we have the letter from marc andreessen should he is -- mark anderson. he is writing to communicate his immense objection. please immediately remove all multifamily housing. this is in all caps. they will massively decrease our home values and immensely increase the noise pollution and

traffic. you reference a blog post he wrote a couple years ago that it is time to build indicating pretty big picture, not a lot of details about what he was saying. this of course on the back of a very big check he wrote to the controversial founder of we work to re-envision housing. there is some irony here. >> i think it is a classic nimby mentality, which stands for not in my backyard. as seen as it is proposed in atherton -- it is extremely wealthy. all the big names lived there. they like it because it is private. it is really not dense. they are surrounded by other very rich neighbors. there is a strong -- of course we like housing but not where i live. that is just a very common attitude.

it is funny to see it show up here. emily: it is not just marc andreessen. a lot of people -- a lot of folks speaking here. we sing without a quote from the ceo of sofi. crime is on the rise. can we substantiate that? >> i think it is bringing up all these fears people have about increased housing which in my opinion tend to be fear around change. they like the town the way it is. one of the quotes in the story is atherton as we know it will come to an end and only you are to blame for that speaking to the town council. emily: given you reported so heavily on we work and adam neumann, what is your take on this? >> i think that they want to send a really strong troll if signal that we are not afraid to back founders who have had a lot of bad press around some of their past examples and we

believe in the iconoclastic brash person at the head of the company. that is going to end up doing a smart check or not we will see. if you look at we were, the people who got screwed as investors are the ones who came in later. marc andreessen may have made a smart move backing newman early and it remains to be seen. emily: maybe fodder for a long podcast someday. thank you. coming up, better.com wants to make mortgages more accessible display one of the most unaffordable housing markets in decades. we will discuss next. this is bloomberg. ♪

emily: the u.s. housing market is quickly changing. homes are more unaffordable than they have been in 40 years and home sales have one for six months straight. the homebuyer affordability index is at its lowest point since 1989 which means in eerie more than half of families cannot it on the property letter. the online housing business is growing and better.com once a leg up on that ladder partnering to create a new platform to help borrowers qualify for better loans. here to discuss is the ceo. thank you for joining us. how will this marketplace work? >> thank you so much. we have 32 major institutional investors on our platform today that actively by loans -- actively buy loans. with this will permit them to do is use a former granular data to make loans to cra eligible

loans, low moderate income loans. things that have traditionally been very difficult for mortgage investors to provide discounts on or to make more affordable. emily: we are heading into what could be a very prolonged economic downturn. we are already in it. this is never a good time for the housing market. why do you think now is a good time to launch this? vishal: i think affordability matters than ever before. we have treat -- we have $3 trillion of capital raised for esg funds. most of it never makes its way into the mortgage market. by creating bloomberg for loan effectively working with palantir, what we are going to be able to do is help families that are in sectors favored by esg investors actively connect with those investors and effectively be able to lower their cost of homeownership.

emily: what are the challenges you think you are going to face when trying to build out a home mortgage business at a time when the housing market is slumping if not crushing? -- crashing? vishal: i think the demand for houses is down but there are still millions of homes being bought and sold every year in the the united states. better.com has grown rapidly. we have grown from nothing to doing almost 100 alien any mortgages of this year. -- 100 billion in mortgages this year. all the market is down, we are still less than 1% market share and we hope we continue to -- we can continue to grow and by making housing more equitable, we can grow addressing one of the issues most homeowners face today. emily: you got a huge capital infusion from softbank. is this you putting that capital to work and how else should we see you putting that money to

work? vishal: making homeownership more equitable well driving our business is the most wonderful type of innovation we can hope for. this is at the cutting edge. by partnering with palantir, what we were going to do in five to 10 years we have been able to leverage our softbank capital to actually make live this year. emily: i have to ask you about this the macro picture has been challenging for a lot of companies. 900 people you laid off via zoom. i know you got a lot of heat for that. when you look back, what do you think went wrong? vishal: we did a lot of things that were very wrong. i should have handled the layoffs with more care and empathy. we were very lucky that because

of the fact we are a digital mortgage company and a digital homeownership platform we were able to see the downturn in the market that is evidenced today and you see many mortgage janitors laying off thousands of people, we were able to see that as early as late last year. we were able to get ahead of it. we were able to downsize. we have taken over a billion dollars in expense line items out of the company's cost structure. we are using that savings to conserve customers. emily: what are you doing to manage costs? to make sure you learn from those lessons and that something like that does not happen again. vishal: managing the up and down cycle of the cyclicality of the mortgage industry is something that is new to us. we are only a six-year-old company. there are companies in the mortgage space that have been able to manage that far superior

to us. what we are keeping our pulse on is customer demand, customer demand for new products and growing those new products not the way we did in 2020 when we grew 800% but slowly getting into customer demand. emily: you are also being sued by one of your former executives alleging you misled investors in the process of trying to go public via spac. the sec is looking into this. what is your response to all of this? vishal: i think it is hard for me to comment on matters that are in active litigation or subject of an sec inquiry. all i can say is every day we wake up and find gratification in helping make homeownership cheaper, faster and better for

more american families. the more we can keep on doing that, better the world will be. emily: you are also trying to take the company public i believe still via spac. there is a deadline coming up for that. is that still the plan? especially given the spec market has fizzled, how are you thinking about whether now is the right time? vishal: we are evaluating all of our opportunities. i cannot comment publicly on it. all i can say is we remain committed to achieving greater capitalization so we can have the funding to serve our customers and we are open to all the different options out there that enable us to continue to be well capitalized. emily: i am curious your thoughts on this. we have been talk about the funding adam neumann received, the biggest check ever to potentially revolutionize

residential real estate or that is what mark and drayton seems to be hoping for according to his blog post. what do you make of that funding? vishal: i'm so happy the venture capital community and entrepreneurs are still interested in revolutionizing the residential real estate markets. we have a $40 trillion industry where consumers pay 6% to buy or sell a home. consumers spend 10% of the value of their home transacting. it takes 60 days to transact. there are so many aspects of the residential real estate market that need to be optimized and made work for consumers rather than brokers and transactional intermediaries. we really welcome the fact there is going to be more novation and innovation in the space. emily: even if it is going to adam neumann who at the least is a controversial founder? vishal: adam neumann is a

controversial founder but he did revolutionize the idea of office space. many of our offices are in we do it in we workspace and i'll i cannot speak to any and all of the opinions in the market about him, we are delighted users of the product he helped create. if he can do the same for residential real estate, good look. emily: all right. ceo of better. we will be watching your marketplace and following the order ship with palantir. -- partnership with palantir. 20 more coming up. this is bloomberg. ♪

emily: qualcomm is taking another run at the market for

server chips to decrease reliance on smartphones. the company seeking customers for a product stemming from last year's purchase of new via according to bloomberg sources. they say aws is one of the biggest server chip buyers and has agreed to take a look at what qualcomm has to offer. china is lashing out at a 52 billion dollar program to expand american manufacturing of semi conductors. an industry association says it contains elements that violate fair market principles. the legislation prohibits companies that receive funding in china. it is the biggest annual television deal ever for a college sports conference. . the big ten has reached an agreement for a seven year contract with fox, cbs and nbc. is worth seven at half billion dollars. the price of college football broadcast rights has soared and

no one has cashed in more than the big ten and the southeastern conference, both of which are expanding to 16 teams. coming up, big names like netflix, microsoft and disney were during recessions. how do you find the next world changing startup when the r word is looming? plus, the state of the nursing shortage post-pandemic and what edible health is doing to increase -- to decrease the gap. this is bloomberg. ♪

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>> welcome back. incredible health a marketplace for permanent health care

workers announced $89 million in series b financing. a recent report from mckinsey estimating the u.s. will be short 200 thousand registered nurses by 2025. let's bring in ceo and cofounder of incredible health. you talked about nursing shortage during the pandemic. what is it like now? >> the big difference in the last 12 months, this is a workforce that is overworked burned out and sprinting excessive stress. our third annual report on nurses in the u.s. showed that one third of nurses are considering leaving the profession permanently by the end of the year. >> how has the pandemic

potentially changed the industry for the longer-term? are we expecting the impact of the pandemic impact availability of nurses for years to come? >> absolutely. for the pandemic, our demand for health care in the country was increasing. pandemics are a demand shock on the system that put more strain on the health care system and the need for even more workers to fulfill that demand. >> the cdc just announced a huge overhaul announcing and acknowledging the mistakes they made during the pandemic. what do you think went wrong? >> there were certainly some challenges with how the cdc collaborated and communicated with the public. they have some responsibility in terms of how intense and challenging covid became in the u.s..

that affected health care forces. they were massively overworked and hopefully, these challenges when and if there's a future pandemic, it won't decimate the health care workforce is much as the last one did. >> what are the implications for the doctor and hospital marketplace? what are you seeing on your platform west and mark >> what we are seeing is, we now work with over 600 hospitals and health systems across states including kaiser permanente and johns hopkins, cedars-sinai and others. everyone of these hospital executives we are working with is dealing with this problem. they are tackling shortages and understaffing on every unit. 30% of our employees are using us -- new graduate nurses.

labor expenses and labor costs are negatively impacting hospital financials as well. >> how do you hope incredible health will help reach some of these gaps? >> our focus is on ensuring that nurses are able to get the best permanent roles. we invest heavily in features and tools for nurses that are completely free. we offer free continuing education, free salome -- seller estimators, we want to continue investing in that including skill growth, educational scholarships, relocation support in order to make sure that in credible health is a place where nurses can manage their careers instead of only the place where they find their permanent job. >> the u.s. is dealing with another some would call it a crisis, the roe v. wade decision from the supreme court. is this at all impacting your platform and workers under

platform? especially those working in states where abortion is restricted? >> it is not affecting the incredible health form, but it is affecting the nursing workforce. there will be an increasing volume in patients. when you restrict that care, you will have more ectopic and life-threatening pregnancies. that increases the workload on the health care workers. they have to examine the legal ramifications when they are supporting and counseling patients. they have to be very aware of their code of ethics and legal regulations they have to follow in their state and hospital. finally, the vaccine mandates were extremely controversial. so is roe v. wade even among health-care workers. you will have health-care workers on either side of the discussion which creates more angst and debate and discussion

and tension in the workplace. >> how are you expecting this to play out over the next several years where this could potentially happen and more states? you're talking about a potential bottleneck already. where are week three years from now customer? >> every report we read, every projection shows that the shortage of workers is projected to continue unless we can do more to support and grow the workforce. the one positive that came out of the pandemic is it put more this is on the importance of the health care workforce and how we need it to deliver care. >> the ceo and cofounder of credible health, great to have you back on the show. tech stocks are staging a comeback generally after a brutal start to the year. the nasdaq 100 was down 31% a

month ago. now, it's down 17% year-to-date. joining me is the cofounder and ceo and managing director of a firm with 200 million in assets under management. how cautious are you right now in this investing environment? >> i have been in silicon valley since 1982 so i have gone through many cycles. one of the things that tends to happen is there's a bit of overreaction when we have these big tips in the public stock market as well as -- big tips in the book stock market as well as growth at all cost including profitability. the pendulum swings in the other direction but it tends to swing too far and that's what we are seeing now. >> your firm made a record

number of investments in the last quarter. 20 investments. why is that? >> we look at risk-adjusted return and while we have seen the risk go up, and we account for that in terms of how we make investment decisions and the model that we used to power our process, what we see is that a lot of folks overreact to the news. they don't know which a look for increasing the risk in their models and that creates fear and makes people hold back capital at a time when it's a good time to be investing because many people are sitting on the sidelines and not sure how to price and the financial process allows us to price at this stage very well and still trying to achieve the same waited multiple we look for in each investment.

>>'s talk about the pricing because it seems that investors would be an advantage right now. we're hearing about lot rounds, down rounds. we're seeing layoffs. what is happening behind the scenes? >> many of the things that are happening you described very well. a lot of that is happening at the later stages where the pricing impact of what happens in the public capital markets has a larger impact. what tends to happen in the earlier stages is that you don't see such large actuations in valuation as you have seen recently. for the end of the cycles where people are doing growth at all costs, you tend to have higher pricing at the seed stage. but not as much as at later stages. we see people doing more flat rounds.

we haven't seen a lot of down rounds yet in our portfolio, but i do think that is not an uncommon thing to happen. holding the price constant right now helps entrepreneurs to get additional capital so they can whether the cycles and the cycles tend to be less than a couple of years for the most part. it's not your price today, it's where you think you can be two years from now in terms of the metrics and outcomes that your investors are going to be looking for at that stage that's a. -- that's important. emily: many companies were founded during downturns. airbnb, black, instagram, square. microsoft was founded during a downturn. how optimistic are you that one of these companies is being founded right now? >> >> i would say there are more

these world changing companies founded now than any before -- ever before in more technology sectors than ever before. i am optimistic. i am a long-term investor and i believe the technology stocks are a place where both individual investors and institutional investors should be because the wave of technology that is occurring now in terms of the market sizes that are possible on the internet, 5 billion users on the internet. when i first started in 1995 as counsel at an ipo for an internet company, there were 39 million users. these numbers have never been possible to access in this way before and they will continue to be a dominant force in the economy moving forward. emily: curious what your thoughts are on one firm writing

its biggest check ever recently. we also spoke to founder earlier in the show who praised the decision. what is your take? >> i am of two minds. one is that people make mistakes and i don't believe in canceling people. i also believe that we have really benefited as a technology sector from some of the work of we work. before, companies used to have fixed costs in terms of real estate space and no more and more companies have a much more variable approach to what was once a very large part of their cost. these kinds of innovations, they do come with good and bad. in your book, you talked about the bro-topia in silicon valley

and i definitely have a lot of issues with that as well, but i recognize when innovations have changed how work gets done and where it gets done. emily: here's my question. i'm not against second chances either, but i think the criticism is that shouldn't we give some people first chances first and people like women, people of color haven't gotten that first check or chance. do you think the venture world is changing or is what happened here an example that it's not? >> this is a really good question. we came into existence to give people the first chances at seed. the idea is that right now, we are still in 1947 if you think

about when jackie robinson entered baseball, it was .9% black players. .7% latinx players. you see a difference now. that is the opportunity in front of venture. those that are not seeking that opportunity will get left behind because 70% of the population can't be inferior to 30% of the population. emily: i love the baseball metaphor. thank you for sharing that. miriam rivera, we appreciate you stopping by. next up, the ethereum merge is finally coming. all the details. this is bloomberg. ♪

emily: it's time for our crypto report, let's talk about the merge. september 15 is firmed up as the likely official date. these this the last likely date? how likely is it that is good to happen on this date? >> i know, there has been a lot of dates thrown around in the past week or so. last week, we knew it would happen for blue in september, but now we know it's going to be probably september 15. this date could still change because ethereum developers are basically looking to see how

many computers are supporting the network, if the number declines rapidly they might pull forward the date. it could still change. emily: what will change once the merge happens? >> basically, what will change is the power consumption of the ethereum network. it will decline by more than 99%. today, transactions on the network are ordered by computers called minors that take up a lot of energy. after the upgrade, it's going to be done differently in a much more energy efficient way. >> what are the implications for other blockchain's? >> some of the older blockchain's still use miners, this power-hungry computers might be more likely to switch something more environmentally

friendly. the newer blockchain's already use a similar technology to what ethereum is moving to. i think we will see more investments into this type of blockchain. emily: let's to continue to watch. -- lots to continue to watch. we will tune in on september 15. tuneup -- coming up, 100 million, 200 million or more. how the pay received by the top ceos are reaching and credible highs, many of them in tech. this is bloomberg. ♪

emily: nine figure paychecks once a rarity are now proliferating despite critics on capitol hill and beyond. as the u.s. was grappling with the pandemic, 2021 was the most lavish year on record by almost any measure with pay deals of more than $100 million in value according to the bloomberg pay index. tell us who is getting these paychecks. elon musk and who else? >> elon musk, tim cook, the ceos of rivian and lucid. you have a couple of finance guys in their. -- there. the list looks similar than the last few years. the list tends to be men and

mostly white. there is one woman. emily: i remember when steve jobs paid himself a dollar or something but he had a ton of equity in apple. how unprecedented is this? >> it's interesting. i thought when i started covering executive pay if years -- a few years ago that we would start to see a shift to the one dollar ceo because you have a lot that are quite wealthy. especially with the bull market ran for so long. instead, it is almost in the opposite direction. it really goes back to elon musk in 2018 when he got the biggest pay package that has ever been granted to a company executive. in which he would earn tens of billions of dollars over the course of about a decade through generous grant of stock options with audacious goals attached to them. what many companies did was to say this looks interesting.

they went out and they constructed similar packages for their ceos and that's what we are seeing popping up here and there across corporate america not just in tech, but in other places. that's driving this trend. emily: it's interesting to see some of the names on this list. rivian just got a car on the road. how are companies justifying these numbers? >> i should caveat these figures by saying the figures republished today are what these packages were worth at the end of fiscal year 2021 when equity markets looked different them they do today. however, historically things have tended to pan out pretty well for company executives. a company say with these packages is that this is what we need to motivate our top guy or gal.

this is reflective of his or her skills and what other ceos get paid. it has to do with what does the rest of the landscape look like and that's why you get these butterfly effect from elon musk gets a grant than somebody else and you have the domino effect. whereas if you saw more one dollars ceos, you would see that proliferate to a different extent. >> you just wrote a piece about ryan: that he made $68 million on the sale of his bed, bath & beyond stake this week. some people were not happy about it. we talked about the potential for regulatory issues earlier. what do we know about the timeline and why he did this? >> we don't know so much about why he did it. we know he started acquiring in

january and he held it for seven months then he offloaded this week. it came on the heels of a rally in the stock after it was disclosed earlier that he had held onto the stake for that long. we are not really sure about the motives, but we do know that it was quite a nice profit for him. emily: i'm sure someone is looking into that. thank you as always for joining us. that does it for this edition of number technology. -- bloomberg technology. coming up, white our guest thanks apple is skirting regulators busy with amazon and facebook. this is bloomberg. ♪

haidi: welcome to daybreak