♪ emily: this is bloomberg technology. coming up, a judge tells twitter to give elon musk the data about bots he has been asking for a. but also because musk possible request absurd leave broad. peloton going all in on content after reporting a huge loss. randall leaning into its digital app, adding new subscriptions including premium. we will talk about the pivot. gen z isn't about the corporate life. half respondents in a new survey say they are trying to create content for social media instead. will it work? first, let's get a check of the markets with katie greifeld. kaite: a big rally.

one more until the big dance tomorrow. jerome hill yes jerome powell taking the stand. he saw the s&p 500 rip higher cup of the nasdaq well. philadelphia semiconductors even. a lot of action in chinese tech stocks. the technology sector rallying almost 4%. there are signs of progress between the u.s. and china in trying to avoid the listings of some of those chinese companies listed. jd.com is a great example. it has surged by almost 40% from its march low. still down well below its 2021 peak. these are the types of headlines we are starting to see, causing a big rise in stocks. great day for chinese tech. let's look to individual u.s.

movers. -- surging 9% after news amazon is looking to buy green hydrogen from the company. tesla stocks split now official. not too much reaction. peloton, that stock cratering after giving a bleak revenue forecast for the current quarter. breaking news from twitter, a delaware judge ordering twitter to handover more data to elon musk. but like you said, also calling some of musk's demands absurdly broad. emily: thank you. let's talk more about twitter. the judge in delaware telling twitter they have to handover more information to elon musk. so, alex, to start with you, the judge asking twitter to hand musk the date that he has been asking for, data that his cap

has said twitter has been hiding. not all of it, but some. >> some what of a concession in this absurdly broad asked. twitter had done a survey of 9000 accounts. basically asking are there humans attached to the accounts or are they bots? the company had not turned this over to elon musk concerns including privacy, but this specific tranche of data is what the judge is speaking about needs to be turned over to of musk which does fall squarely in the argument he is making that he doesn't have enough information yet to say strongly that twitter's initial public statements set about 5% of users per bots. this is one concession here that we do see the judge forcing twitter's hands to make sure musk gets more details.

emily: it seems like most of the orders from the judge so far have gone in twitter's favor. this one, not. i wonder what you make of this. is it a clear negative for twitter? >> she has narrowed the broad request. just those 9000 accounts. while twitter has said they can't give over that data for privacy reasons, that is loaded enough that it is sort of a compromise here for the company. i do think it is a small win for musk and it shows that the judge may face that it is true he does not have enough information to gauge whether that 5% is bots. this is not really a debate about bots, it's a debate about whether that has -- whether there has been a materially adverse effect on twitter since the time yvonne signed that contract.

twitter is arguing that there have not been anything that would get musk out of the contract. so, if the judge is asking for the data to be handing over, it could go towards answering that question. but i do not know that it will be enough. emily: we are going to follow that but i also want to ask about changes to instagram. instagram introducing new child safety measures. tell us what to measures involve. >> they have measures in place for teens under 16. basically so that they can have a feed that shows that less content that might be seen as inappropriate for younger users. think, sexually explicit content, violence, things that are allowed on the app but do not violate community guidelines, but not bite --

might not be right for that cohort. the company came out and said they will default users under the age of 16 to get this less version of the platform that excludes them from seeing this content. if you have been watching and following some of instagram and facebook, regarding child privacy, you will know this comes on the heels of a bit of a flurry of activity. there's a couple of actions in the senate. a bill and an extension on child privacy laws. an action in the house. basically it has taken a step back to look at these platforms and say, are we really protecting minors using the apps? instagram allows users 13 and older. there are a number of years there where folks are below the age of 18 on social media and bite not be the right audience for some more of the explicit content.

emily: you wrote the book on instagram last year. the company announced big plans to start instagram for kids, there was huge public outcry. they put plans on pause. do you think that project is done? could they attempt to do it again? >> i think they are taking a lot of the ideas they have had for instagram kids and applying them to teens who are already on the platform. although the rule says 13 and up is allowed on instagram, there are plenty of nine and 10-year-olds on that app. that is why instagram has increased the restrictions around asking you about your birthday. a lot of people recently had been asked that question because information is trying to make sure they are cleaning up their act, trying to improve their reputation. if they managed to do that,

nothing is off the table. they will always want to expand into new demographics. people who are younger than 13, those are the kinds of users that are obsessed with youtube, obsessed with tiktok, those major competitors of instagram that they want to figure out how to make a product for them. i think social media holds up a lot more concerned than a straight entertainment product might because of the connections with strangers and the ability for your own content to be viewed by the masses in a more explicit way. i think they are adding this around teens. they had parental controls earlier where you had to have a guardian check on your account. all of those are an effort to include that reputation around child safety so that may be down the line they can take that extra step and bring the kids product back.

emily: we've got a new survey out that younger people, gen z, ditching corporate jobs because they hope to make a career creating content on social media. how realistic is this? obviously we know that social media influencers can make a lot of money. this is obviously an evolving business that is still in its early stages. tell us more about this survey and what it tells us. >> the survey tells us bake us -- basically that this younger generation, half of them think about a job outside of the run-of-the-mill jobs. making money off of social. the caveat is that influencers on social from the platforms themselves are not making a ton of money. it is about building a following and connecting with sponsors, leveraging that following to make money off the platform.

the survey basically broke down the numbers and showed that while there might be a benefit to this flexible work environment, you are your own boss and you need to hustle. only 12% of the participants surveyed are actually making more than $50,000 a year, which is if you live in new york, that's actually below the median income. folks are hustling. that is also probably why some of these younger audiences are looking to get on social earlier because they have aspirations to turn this into a career. but also, it's not easy. you see the big success stories but what you do not see are the folks who are on social as a side hustle or really leaning into turning it a full-time job because they are their own boss. it is -- industry where you get out of it as much as you put in. so, we will see if gen z can

turn this into the next big economy but there are a lot of hopes and aspirations to make social media their career path. emily: let's talk side hustle. there is a meme right now, quiet quitting. people are talking about doing the bare minimum at their job, not going above and beyond, trying to maintain a healthy work-life balance. how realistic is it that these folks could make some extra cash with that time they are not spending going above and beyond at their corporate jobs, but making cool tiktok's? >> when i talked to teens, gen z folks who are now in the workforce using instagram and youtube alongside their job, they have their personal account and they might have a more private account. one focused on fashion were their pets. because they want to try

something. as a creative pursuit, a hobby, that in the back of their minds they are thinking could be a fallback plan if their career doesn't work out. or we are going to be nice to kids who kids who get paid to go to restaurants. only a select few people end up getting the level of income you would need to really be micro famous. and then you have got to keep it up. there's a lot of persistency, reinvesting yourself. if you are on instagram making photography, now it's short form videos. you have to be persistent and you cannot quiet quit if you are working for yourself. i see it as a side hustle, something you could be doing in college alongside other work. hoping it can help pay the bills, if they get the luck of

the draw. i think that is rare. it is just a general aspiration people have. >> we are going to let you go. do some other things with your time. thank you both. we will be back. this is bloomberg. ♪

emily: a 1.2 billion dollar loss, but the ceo says naysayers are looking at it wrong. shares jumped 20% this week when peloton announced its new partnership with amazon.

that gain all that wipes out today. mccarthy's optimistic spirit he says he see significant progress driving our come back and long-term resilience. for more, i want to bring in their managing director at end partners. the worst stock climb in seven months. is it warranted? >> thanks for having me. nothing to cheer about. they have underperformed. fourth quarter in a row we are seeing them coming below expectations and lowering the guidance. we don't know yet where the demand is going to -- but to the ceo's credit, they are moving fast. there are showing -- but the market is moving. the demand curve is slipping very quickly, very far away.

>> how hopeful are you about mary mccarthy on the possibility of a turnaround? >> in terms of the work they are doing, whether they can get results they hope to get is still probably six to 12 months out. there needs to be patients. during that time, you have got to have stability of how and a post-pandemic recession world, in a higher inflation world, how do people view a high end product like peloton? that is the big unknown. one thing they can truax is a lot of things. there -- prices, they are playing around with consumer options like renting. they are going to amazon and more retailers to try to get a broader audience. they are doing a lot of things, but they are in a very unusual point in macro cycles. that is hurting them a lot more than what mccarthy and his

steamboats to achieve short term. emily: what do you think of this pivot away from hardware to offering premium classes? how much could that help? >> that is helping, but understand that is opening up their user base to people who are extremely price-sensitive. if you are not willing to buy a $2000 bike, it probably you could rent it for a few months for a hundred dollars and see how things go. after three to four months, you could buy it or commit to pay a hundred dollars a month. there is a certain cohort of users who may be willing to try that out. there needs to be a -- directional logistics macro they need to set out. they need to have -- forces.

it is a good experiment so far, but that is -- an experiment. it is still early and those experiment, -- a lot of those. as i said, the broad shift, the shift mccarthy talks about in the letter is very slow. emily:. lots to follow. mk and partners managing director. thanks for stopping by. coming, amazon takes a big step poster to its goal of net zero 2040. we will tell you how. this is bloomberg. ♪

emily: amazon getting greener. launching a partnership with an electric equipment maker. they need to hit carbonate -- after buying one medical for $3.5 billion. what do you make of this latest twist in the amazon house story? what does it mean that in a context of the one medical acquisition? >> it does look like there's a lot of overlap between what one medical provides and what amazon care was doing. one medical is just specifically ahead in terms of its footprint

and customer base. the only breadcrumbs amazon dropped about why it is shuttering amazon care is they said that it is not robust enough. if they try to get this primary care medical service that they are trying to target other businesses to buy it on behalf of their own employees, they basically couldn't sell it. it didn't have a robust enough offering. it sounds like amazon is coming back to the drawing board and it is going to have to go above and beyond this amazon care's which is limited. >> talk to us about this development in amazon's push to be green. how significant is it? >> it is a big deal. to the extent that the amount of energy they will be purchasing. this 11,000 tons a year beginning in 2025 is basically

the entire production of one plant power. a plan uses wind or solar energy to create hydrogen which will be used as fuel. it is a streamlined process, trying to have no emissions throughout. that amount of fuel will run tens of thousands of forklifts. hundreds of trucks. it is a significant step and a big boost for hydrogen as a clean power source. but, it is still amazon's carbon emissions are still going the wrong way. after the pandemic it made a big pledge, but carbon emissions still went up by 40%. it's got a lot of work left to do yet, granted it has until 2040. emily: how optimistic are you that amazon hits that goal? >> i am not. there is so much time between now and then. who knows what for e-commerce

will be at that time. there is certainly a lot of time left for them to develop alternatives. emily: spencer soper from seattle. thank you for joining us. coming up, bloomberg's -- give us a sweet -- sneak peak to what to expect from the new iphone. plus, what venture capitalists are bracing for ahead of jay powell's speech friday. we will talk about that with andrea wally of manhattan venture partners. this is bloomberg. ♪

>> the iphone 14 is only a couple of weeks away. apple is planning to announce

the new device on september 7 and put it on sale on september 16. the new phone will continue to come in for models. apple is replacing the iphone 13 many with the new iphone 14 max. that will give apple a standard iphone with a big 6.7 inch display for the first time. they will have a 48 megapixel camera on the back. and if after a 16 processor. the biggest design change will be different. a pill ship cut out will come in for bayside. they will also have a hands-free reporting and better battery life. the phones are launching about a week earlier than usual, giving apple an extra chunk of sales. apple is planning to announce an update to the apple watch sc and an apple watch series eight in

his first apple watch pro. that one will have a more rugged design and a larger display. later this year, apple announcing the entry-level ipad in addition to new maps. this is power on. >> you can subscribe to his weekly power newsletter at bloomberg.com. lots of questions about how much further the government will go to tamp down inflation. our vcs watching at all. let's discuss with andrea. great to have you back with us. curious what fed chair jay powell could say that would change things for venture capitalists. quick thank you, emily. i would say what we are all

really eager to see is what the impact on soaring inflation is going to do for all of us. i think we are all looking at the -- looking at the outlook of unemployment reaching five deck those and what this means for interest rates when they have been hovering at zero for so long. i think we are all taking a pulse on what this employment will look like going forward. >> exactly. i said the fed says we will take more steps to tamp down inflation. would you do anything differently? would you advise your portfolio company differently? >> i think everyone is trying to spin continuously so the end the year very strong. generally, i think every startup in the market still has that hiring craze going on and they are eyeing the end of the year and saying how do we keep

ensuring that everyone is incentivized -- this is more or less still at a standstill. crimes are your portfolio companies thinking about doing more layoffs if the environment continues? quite some of them are. i think going into the start of this past year, a lot of the late stage startups at least had big aspirations for big hiring plans. generally, they are looking to spend across the board. with that said, i think the hiring is at a standstill. they are not targeting an increase in budgeting and keeping things really tight. i think a lot of startups are changing cores around the narrative -- the forecast going into the second half of this. >> is a changing the investment strategy at all?

are you reducing the amount you would put into a single company? do you have more power because times are tough for some of these companies? >> we really are seeing a big shift and our investment strategy remains the same. we are looking at late stage companies that are the top of their sector. they have strong financial backing. what we are saying is from a reflective standpoint of the public comparables we are seeing the valuations of these late stage companies are still really high. a lot of the companies are still raising at 20, 40 if not 50 times revenue alongside other fundamentals. a lot of them really just don't want to take that valuation cut. we are seeing companies leveraging debt structures and other things we are putting in place.

venture capitalists say we don't want to see you raise the down round, we would rather come up with something really creative as an alternative. >> i know you are an investor in instacart and they are planning to go public later this year. they have also done a big down round which they chose to do of their own volition given the change in the market. curious what they are -- what you're expecting for their planned ipo. >> from what i can share, i think generally, instacart is one of many companies who are really still eyeing the market volatility. i know that is what we are all discussing. i think there are companies that really opened up the ambiguity to say maybe they will go traditional ipo. maybe another function.

it seems a traditional ipo pass is the safest action. i think we all expect that window, that is between the third week of september and more or less, the second week of december before the big holiday season so they have more time to get ready. i think they could be the blockbuster ipo at the end of the year but generally, i think it is to a little shaky and we are not seeing a course corrected in the public to see whether or not for certain it will go out. >> there has been a lot of controversy over a very big check that was written to adam neumann, the cofounder of wii works for his -- we work for his new real estate venture. some people to like it, some people do. what do you think? >> it is the single largest investment they have ever written.

i think they supported adam neumann for everything he is doing on the block chain side. i think the strategy is that -- obviously, adam neumann, whether we love him or hate him, he is a proven founder and you can do it again. he already tried it with we live. there were other things to focus on but -- this is part of the entire offering here. this is not only a category defining way to change where we live -- it really goes to the

mythos around printer going forward and have digital infrastructure is going to change. i think it makes a complete large amount of sense that they coupled all this together and they said we have a proven founder and we will take this forward and see that he change the world again and this time in a different asset class. quite interesting take. the controversy is what you make of the size of this check in general? to write a check that big. that is a very uncertain economic environment. >> these funds keep getting larger. they do have to deploy this across the board. i would say the company needs a lot of capital to keep acquiring the units they have. we have 3000 apartment units under their mandate. going forward, it will require

increasingly large amount of capital. it doesn't necessarily surprise me but i would say with this capital, i would expect they are probably well off of next two years. >> good to have you back with us. thank you for sharing your thoughts. we are going to talk about what it all means for the rest of these with john wu. that is next, this is bloomberg. >> we have seen other networks be successfully launched. these are the only proof of work networks are still alive and we have not seen any issue on the other roof of state networks.

>> time for a. this is the lead developer and our crypto contributor. >> this is a correlation with the nasdaq. what the market is saying is this is all high-risk assets. jay is going to raise rates.

what i think the market needs to understand is this will be in the crypto assets. if you think about the crypto market caps, they are going down. that tells you a lot of people are hiding and they are ready to deploy. i know you guys want to talk about the merge. that is a huge catalyst. i think what will supplies -- surprise people is you will have some alva in the space. >> he said that you were at tiger again. how much do you need to be in

touch with the macro? is it more about the particles are what is happening around the ecosystem? >> i had the benefit of being an operator for five years. i think having a macro perspective is always very important. when you wake up in the morning, you need to know what season it is. what clothes you put on is dictated by your tears. as an operator, i am focused on getting more users -- getting the masses into the states. there are a few 100,000 developers in the state. there are 30 million plus web developers. by the way, those youth cases, they are really happening. there was a lot of operating momentum. >> you are seeing people in the industry get paid to fix up any

issues that might be presented to the theory emerge that is so highly anticipated. a lot of people hard at work. how will the merge affect other assets outside of the theory of -- ethereum? >> i am of the belief that the state is so small, the space is helping to bridge that gap. the assets move back and forth. there is a bridge with over $50 billion of assets. the more people that come into the ecosystem, the more applications get developed. i think your users should also

be helpful that the merge goes well. if the merge goes well, basically, that will allow this to happen. that could mean $600 million of revenue for going base. that is significant. that is very good for corn-based stocks. >> it has clearly been a volatile year. it could continue to be volatile throughout the rest of the year. what is your outlook on how this winter lasts. where we are at this time, let's say, next year.

>> i think the winter will be here for a little bit longer. i am looking forward to the new protocols that redefine the way the business operates. what you can do when tokenization is here in full swing is you are going to encode the business logic into a smart contract. the platform is the business. what does that mean? going base has about 5000 employees. it has about 2.4 or 2.5 billion dollars of daily volume. this company has a billion dollars of volume a day. that is about 100 employees out there.

the best part of this is the network effects that happen. >> i really need to get your opinion on something. really quickly, what is this most likely -- most like in traditional financial services? client base might start making it a bigger part of its product. >> what it is doesn't exist in the traditional world. the way value is distributed in the traditional world is in two ways. there is labor and then using

your capital to make more money. with labor, you get paid for the value you create. hopefully you will get a return on. baking is the combination of the two. it is a hybrid. when you talk about how you regulate that, that is the really good question. is it the labor or the dividend and yields? it is not clear. i think we are putting things to work. that is the spirit, helping to make decisions in getting rewarded for this. not putting your collateral down. >> lost to think about. good to have you back as always. thank you. coming up, more from phil spencer, his vision on a world where children can play together

no matter console they are usin.

>> something else we are following, sony raising the price of its playstation 5 console in major markets outside the u.s. by as much as 20%. the move is in response to global inflation rates and currency trends impacting consumers and creating pressure on multiple industries. i sat down with saul spencer to talk about the relationship with the other platforms. i first asked him why he is such a big proponent of cross-platform gaming. listen to what he had to say. >> if i buy an xbox and you

bought a plantation, our kids can play together. it seems these artificial constraints that the industry might put up for near-term business dynamics in the long run, if you take a business that is -- that is 3 billion people growing to 4 billion people over the next decade and saying how do we continue to grow this business, we are reducing friction for customers. >> how far does this go? does that mean you will be able to play on any platform in perpetuity? >> it is not for any kind of nefarious business reason. i think the definition of some of these things might change over time but our expectation is we want more people to play. >> i know you are working with sony on some things for the benefit of gamers. can you talk to us about that a little bit. >> we have good relationships with those platforms because

they are a big part of our business and we are a big part of their business. i think your long-term ambition of where we see this industry growing is also shared. i think the area where things get stuck a little bit is near midterm competition. if somebody walks into the store and they have a $500 bill, it will either walk out with a switch or a playstation 5. in that world, somebody has to make a decision for one platform in the beginning. that is where we get stuck in the near term competition. we are trying to build the best product for our customers. >> you can watch the full addition of bloomberg student 1.0 with saul spencer or check at the podcast. that does it for this edition of

bloomberg technology. coming up on friday, we will talk about the company revenue forecast for 2023, its earnings under pressure as well as the future of buy now pay later. don't forget to check out our bloomberg tech podcast anywhere you get your daily tech roundup. i am emily chang in san francisco. this is . ♪

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