announcer: 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, a judge tells peter to give musk the data about bots that he has been asking for, but also because elon musk's requests absurdly broad. more on that in a moment. plus, return is going all in on content, after reporting a huge loss, the brand leaning into its digital app, adding a new subscription tiers including a premium version. we will talk about the pivot from hardware. and, gen z isn't about the corporate life. half of the respondents in a new survey say they are trying to make money creating content for social media instead. will it work? first let's get a check of the markets with bloomberg's katie greifeld. katie: it was a big rally, at

least one more big rally before the big dance tomorrow, of course, jerome powell taking the stage at jackson hole. stocks were none too perturbed. the s&p 500 went higher, the nasdaq as well. a lot of the action was in the chinese tech stocks. that etf that tracks the china technology sector rallying almost 4%. let me tell you why. there are signs of progress between the u.s. and china in trying to avoid de-listings on u.s. exchanges of some of those chinese companies listed in the u.s., jd.com is a good example. it surged over 40% from its march lows, still well below its 2021 peak. these are the headlines causing a big rise in stocks such as jd.com. so a great day for chinese tech. let's look at the individual u.s. movers.

plug power surging 9%, after news amazon is looking to purchase green hydrogen from the company. tesla moving on, the stock split now official. not too much reaction on the news. peloton, though, the stock absolutely cratering, giving a bleak revenue forecast for the current quarter. and then latebreaking news from twitter, that delaware judge ordering twitter to hand over more data on the bot account to must, but, like i said, also calling some of musk's demands absurdly broad. emily: thank you. let's talk more about twitter. as katie said, the judge in delaware telling twitter that they have to hand over more data on bots to elin musk. joining us are two guests. alex, the judge is asking twitter to hand elon musk the data, data that elon musk's camp

says twitter has been hiding -- not all of it, but some of it. what do we know? alex: it is some of it. twitter had done a survey of 9000 accounts basically looking to see, are there humans connected to these accounts or are they bots? initially the company hadn't turned this over to elon musk a number of concerns, including privacy. but this specific tranche of data is what the judge is speaking about needs to be turned over to elon musk, which certainly falls squarely in this argument he is making that he does not have enough information yet to say strongly that twitter took a initial public statements about 5% of users are bots, musk does not have enough data to vet that. so the judge is forcing twitter hand to make sure musk gets a bit more detail.

emily: seems like most of the orders from the judge have gone in twitter's favor. this one, though, not. i wonder what you make of this? is this a negative for twitter? >> she narrowed the broad request to just those 9000 accounts. where twitter said, we can't give over that data for privacy reasons, i think that is a compromise here for the company. i do think it is a small win for musk and it shows that the judge might think that it is true that he does not have enough information to gauge whether the 5% number is bots. but let's not forget, this is not a debate about bots, it is a debate about whether there has been a materially adverse effect to twitter in the time since elon musk signed the $44 billion contract by twitter. twitter would argue, or is arguing that there hasn't been

any major change, nothing that would get musk out of that contract. if the judge is asking for the data to be handed over, it could go towards answering that question. but i don't know that it will be enough. emily: alright. we will continue to follow that. i also want to ask about some changes to instagram. today instagram introducing some new child safety measures. tell us what these measures involve. alex: they have some measures in place for teens under the age of 16, basically so that they can have a feed that shows them less content that might seen as inappropriate for those younger users. thank sexually explicit content, violence, things that are allowed on the app that don't actually violate community guidelines, but they may not be right for that cohort. the company came out and said

that they would default users under the age of 16 years old to get this less version of the platform that excludes them from seeing some of this content. now, if you have been watching and following some of instagram and its sister companies -- facebook's desktops regarding child previously, you will know this comes on the heels of activity. there have been a couple of actions in the senate, a bill and an extension on child privacy laws, basically that have taken a step back to look at these platforms and say, hey, are we really protecting minors using the app? remember, instagram allows users 13 and older on the app. there are a number of viewers below the age of 18 on social media and they might not the right audience for the more sexually explicit content that can show up on the platform. emily: interesting.

now, sarah, of course, you wrote a book on instagram this 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? sarah: i think they are taking a lot of the ideas that they had for instagram kids and applying them to teens who are currently on the platform. let's be clear, although the rule says 13 and up is allowed on instagram, there are plenty of 9 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 have been asked that question. that is because instagram is trying to make sure that they block it to anyone below 13. they are trying to clean up their act and improve their reputation. if they do manage to do that, nothing is off the table.

they will always want to expand into new markets and demographics, and people who are younger than 13, those are the kinds of users that are really obsessed with youtube and with tiktok, those major competitors of instagram, that they want to figure out how to make a product for it. i think social media opens up a lot more concerns than a straight entertainment product might be because of the connection with strangers and the ability for your own content to be viewed by the masses in a more explicit way. so i think that they are adding this around teens, they added parental controls earlier, ways how to have a guardian check your account and know who you are connected to an messaging with. 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: meantime, you have the new survey of that gen z is ditching corporate jobs or not taking them at all, because they hope to make a career creating content on social media. alex, 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 very likely in its early stages. tell us more about this survey and what it tells us. alex: the survey tells us basically that the younger generation, gen z, half of them think about a job outside the run-of-the-mill jobs. making money off of social. now, that caveat here is, influences on social, from the platforms themselves, are not making a turn of money. it is about building your following connecting with , sponsors, leveraging that following to make money off the platform.

the survey broke down some of the numbers, and showed that while there may be a benefit 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 if you live in a place like new york where a lot of these creators are, that is actually below the median income. folks are hustling. it is also probably why some of these younger audiences are looking to get on social earlier and build those followings if they have aspirations to turn this into a career. but also, it's not easy. you see the big success stories , but what you don't see are the folks who are on social kind of as a side hustle, or leaning into turning it into a full-time job because they are their own boss. nothing is guaranteed. it is one of those industries 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 certainly a lot of folks with aspirations to make social media their career path. emily: let's talk about the side hustle part of it, because there is this whole meme right now, quiet quitting. where people are talking about just doing the bare minimum at their jobs, not going above and beyond, trying to maintain a healthy work-life balance. how realistic is it that some of these folks could make some extra cash with the time that they are not spending going above and beyond at their corporate jobs, but making really cool tiktoks? sarah: when i have talked to teens and gen z folks who are now in the workforce using instagram and youtube alongside their jobs, they have their personal account, and they might have a more professional account. or they might have one that is focused on fashion or food or pets because they want to

try something. as a creative pursuit or a hobby that in the back of their minds they are thinking, this could be a fallback plan if my career does not work out. wouldn't it be nice to be paid to travel the world, or to be paid to go to restaurants? only a select few people end up getting the level of income that you would need to be micro-famous. and like alex said, you have to keep it up, there is a lot of consistency and reinventing involved. if you are on instagram, for example, hosting photography, you have to start doing short-form video. you have to be consistent and you can't quit if you are working for yourself. so i do see it as a side-hustle thing, kids doing it in college, adults doing it alongside their work, hoping that it can help pay the bills

if they get the luck of the draw. but i think that that is pretty rare, it is just a general aspiration that people have. emily: all right, we will let you go and do some other things with your time. [laughter] bloomberg's sarah friar and alex barinka, thank you both. we will be right back. this is bloomberg. ♪

emily: peloton shares are reeling from a 1.2 billion the last, but the ceo says naysayers are looking at it wrong. shares jumped 20% this week when peloton announced its new partnership with amazon. that gave all but wiped out today.

the ceo is optimistic, and says, "what i see is significant progress during our come back and long-term resilience." for more, i want to bring in their managing director at end partners. the worst stock plunge in seven months. is it warranted? >> thanks for having me. nothing to cheer about. they have consistently underperformed. they have consistently underperformed guidance and expectations. for the fourth quarter in a row, we are seeing them coming below expectations and lowering their guidance. so we don't know yet where the demand will stabilize. to the ceo's credit, they are moving fast, showing a lot in the velocity of execution, but the market is moving against them. the demand curve is slipping very quickly, very far away. emily: so how hopeful are you

about barry mccarthy and the possibility of a turnaround? guest: in terms of the what they are doing, whether they can get the results they hope to get is possibly six, maybe 12 months out. so there needs to be some patience. we hope to have some stability about how in a post-pandemic world, in a post-recessional world, in the higher inflation world, how will people view a high-end product like peloton? that is the big unknown. but they are playing around with consumer options like renting, fitness as a service, going to amazon and more retailers to try and get a broader audience. they are doing a lot of things. but as we know, weaker in a very unusual point in the macro cycle and that is hurting them a lot more than what barry mccarthy

and his team hope to achieve in a very short time. emily: what do you think of this pivot away from hardware to offering premium classes? how much could that help? rohit: that is helping. it is opening up their user base to people who are extremely price-sensitive. if you aren't willing to buy a bike which is worth $1500 right now, probably you could rent it for a few months for $1800 or $1900 and see how things go and then at the end, if you feel like using it more, you could buy it, or you could continue to pay $80, $90 a month. there is a certain cohort of users who may be willing to try that out. there needs to be a directional logistics network that they have to set up, they need inventory to fulfill such demand. so it is a good experiment and there is good success so

fire. but it is an experiment. it is still early days. those experiments, they are doing a lot of those. but the broader cargo ship that barry mccarthy talks about in the letter is very slow to turnaround, and we are not seeing from the outside, the effort that they are putting in. emily: alright,, lots to continue to follow, row kearney, -- row hit kulkarni, mkm 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. and cleaner. the e-commerce giant is announcing a partnership with an electric equipment maker to cut down carbon use. earlier this week, amazon announced it will wind down its telehealth service, just weeks after buying one medical for $3.5 billion. let's bring in our reporter who covers amazon for us. so, 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 is a lot of overlap between what one medical provides and what amazon care was doing. one medical was just significantly ahead of amazon care in terms of its footprint and its customer base.

but the only bread cramps amazon really dropped about why it is shuttering amazon care is they said that it is not robust enough. that as they try to get the service out, this primary care medical services that they are trying to target other businesses to buy on behalf of their own employees for, that they basically could not sell it, that he didn't have a robust enough offering. sounds like amazon gives coming back to the drawing board. it will have to go above and beyond this amazon care service which is very limited. emily: ok. so 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, it is basically the entire production of one plant of plug power.

plug power uses wind and solar energy to create hydrogen which will then be used as a fuel. it is a very streamlined green process to have no emissions throughout. that amount of fuel to run thousands of forklifts. 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, especially after the pandemic. they made a big pledge, but there carbon emissions still went up significantly, by 40%. it has got a lot of work left to do yet. granted, it has until 2040. emily: how optimistic are you that amazon hits that goal? spencer: there is so much time between now and then. who knows what form e-commerce will be at the time, delivery and that sort of thing.

but there is certainly a lot of time left for them to develop alternatives. emily: ok, bloomberg's spencer soper, with an update from seattle. thank you for joining us. coming up, mark gurman will give us a sneak peek on what to expect from apples brand new-14, out in a few weeks. plus, what venture capitalists are bracing for a head of jay powell's speech friday. we will talk about that with andrea walne of manhattan venture partners, next. this is bloomberg. ♪

(♪ ♪) (racing sounds) (game chime) (silence) (♪ ♪)

real luxury, real thrill. feel the rush of performance at the lexus golden opportunity sales event. (♪ ♪)

mark: 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 four models -- two pro versions and two standard versions. but apple is replacing the iphone 13 mini with the new iphone 14 max. that will give apple a standard iphone with a big 6.7 inch display for the first time. the new pro phones will have a 48 megapixel camera on the back for a wide-angle lens, and a faster processor. the biggest design change will beat to the front camera. a pill-shaped cutout will come in for face i.d.. pro models will also have enhanced video recording and better battery life. the new phones are launching about one week earlier than usual, giving apple and stretch check of sales for its fourth quarter. apple is planning to announce an update to the apple watch se,

and its first apple watch pro. that will have a more rugged design and a larger display. later this year, apple is aiming to announce revamps to the ipad pro and the entry-level ipad, in addition to new max with mac's face chips. i am mark gorman. this is "power on." emily: you can subscribe to mark 's weekly "power on" newsletter at number.com. let's take the temperature of the private markets. head of jay powell's speech this week, lots of questions of how much further the government will go to tamp down inflation. how are vc's watching it all? let's discuss with andrea walne from manhattan venture partners. great to have you back with us. curious what fed chair jay powell could say that would change things for venture capitalists. andrea: thanks, emily.

i would say what we are 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 outlook of unemployment reaching 5-decade loads. what does this mean for interests rates when they have been hovering near zero for so long? i think we are taking the pulse on what this employment environment is going to look like going forward. startups are trying to hire. emily: exactly. let's say the fed says, we will take more steps to tamp down inflation. would you do anything differently? would you advise your portfolio companies differently? andrea: i think everyone is trying to reduce spend so they can finish the year strong. generally i think every startup in the market right now is still got that hiring freeze going on and they are eyeing the end of the year and saying, how do we

retain talent? how do we keep ensuring everyone is incentivized, while increasing the workload on everyone while hiring is more still at a standstill? emily: so are your portfolio companies then thinking about doing more layoffs if this environment continues? andrea: some of them are. generally, going into the start of this past year, a lot of the late-stage startups had big aspirations for big hiring plans. generally, they are looking to reduce spend across the board. with that said, i think hiring is still at a standstill. they are not really targeting an increase in budgeting and keeping things tight. a lot of startups are changing course around the narrative around their forecasts, going into the second half of the season. emily: is that changing your investment strategy at all? are you pushing for lower valuations, reducing the amount

you would put into a single company? do you as an investor have more power because times are tough for some of these companies? andrea: we really are seeing a big shift. our investment strategy remains the same. at manhattan partners, we are looking at late-stage companies in the top half of their sector, a strong leader with strong backing. from a reflective standpoint of the public comparables, right, at the publicly traded companies comparable to the private startups, the valuations of these late-stage companies are still he high. over all, a lot of these companies are still raising 50x alongside fundamentals. a lot of them don't want to take the valuation cut. so we are seeing companies really leveraging data structures as well as different types of antidilution rights that we are putting in place, as well as many other venture

capitalists say, we don't want you to raise a down round, we would rather come up with something creative is an alternative. emily: you are an investor in instacart. instacart is planning to go public later this year. they have also done a big "down round," which they chose to of their own volition, given the change in the market. curious what you are expecting from their planned ipo, at a time when it seems that ipo window is pretty much shut. andrea: from what i can share, generally, instacart is one of many companies who are really still eyeing the market volatility. i know that is what we are all discussing. they are a company that really opened up the ambiguity to say maybe they will go traditional ipo. maybe another listing. based on what we know publicly,

it seems that a traditional ipo is the safest course of action, if they were to go out this season. really, we all expect that ipo window is between the third week of september and the absolute latest, the second week of december, before the holiday season. so they have more time to get ready. they could be the blockbuster apo to end the year. -- blockbuster ipo to end the year. emily: there has been a lot of controversy over a very big check that andreessen horowitz wrote out to adam neumann, the cofounder of we work, for his new real estate venture. some people to like it, some people do. what do you think? andrea: it is the single-largest investment check and have ever

written. and i think they also supported adam neumann for everything he is doing on the block chain side. i think the strategy here is that, obviously, adam neumann, whether we love him or hate him, he is a proven founder and he can do it again. he already tried it with me -- with welive. did not work out, there were other things to focus on. the narrative interesting here is how adam neumann says that at flow, they learn to up our crypto wallet as part of the entire offering here, and they say that users can pay to earn and rent to own as well. so i think the overall strategy for andreessen is that this is not only a category defining way to change where we live, and how the biggest asset class being real estate, could

change. it goes to the thesis that and reason has around crypto going forward and how they crypto structure will change. it makes a complete large amount of sense that they coupled this together and said, we have a proven founder and we will take this forward and see that he changes the world again, this time in a different asset class. emily: interesting take. controversy aside, what do you make of the size of this check in general? to write a check that big in this very uncertain economic environment. andrea: andreessen's funds just keep growing higher. i expect to see more of that from them. i would say that this is a company that is going to need a lot of capital to keep acquiring the units that they have. right now they have 3000 apartment units under the mandate. going forward, it will require

an increasingly large amount of capital and doing it at a velocity that is really high. so it does not really surprise me, but with this capital, it would expect they are pretty well off for the next two years when it comes to their runway. emily: alright, andrea walne, general partner at manhattan venture partners. good to have you with us. thank you. coming up, we are going to talk about what it all means for the rest of -- with evia labs president john wu. that is next, this is bloomberg. >> we have seen other networks be successfully launched. solana, avalanche. bitcoin and ehter are the only other proof-of-work networks still alive. i think proof of state will be just fine.

emily: time for our crypto report. bitcoin may be poised for another downward move. let's talk about what that means for the general ecosystem with our next guest, john wu, president of ava labs, lead developer on the blockchain. we are bracing for whatever jay powell has to say coming up on friday. curious what you are watching for and how whatever he says could mean for the crypto ecosystem. john: bitcoin and geither bank now are at 0.75 in terms of correlation with the nasdaq -- bitcoin and ether. the market is saying that all high-risk assets are correlated. jay powell is going to raise rates.

analysts saying that we need rates to go higher, and i agree, they will go higher. but what i think the market needs to understand is that there will be alpha in the crypto asset space. and there is very good reason for that. fundamentals are absolutely increasing and improving. the technicals, if you think about the crypto market caps, they have gone down, but stablecoin have not that tells you a lot of people are just hiding and they are ready to deploy. finally, i know you guys want to talk about the merger with ethereum and that is a huge catalyst. i think it will surprise people is that zero point 75 correlation, no matter where the market goes, will go down, and that you will have some alpha in the space. sonali: you worked at tiger. darren moorehead also worked at tiger before. marking no regrets previously. how much do you need to be in

touch with the macro to get the fundamentals right in crypto? is it more about the protocols or more about what is happening around the ecosystem? john: i have had that benefit of being an operator for five years and being an investor in technology for longer than that. having a macro perspective is always very important. when you wake up in the morning, you need to know what season it is so you know what clothes you put on. but that is dictated by your personal taste and how warm it is. so as an operator, i am focused on getting more users in, getting more masses into the space and getting developers. there are 30 million-plus web developers. all of these layer 1's should be working on getting more use cases into the space. by the way, those use cases are really happening. there is a lot of operating momentum. sonali: speaking of developers,

you are seeing people in the industry get paid to fix any issues pertaining to the ethereum emerge that is highly anticipated. how might the merge affect other assets outside of ethereum? john: i know it makes great headlines to say ethereum killer and market share. again, i am of the belief that the space is so small that the space should work together to help the masses come over and bridge that gap. i am rooting is an operator for the ethereum merge to be smooth and to happen on september 15 very well. avalanche is edm-compatible. the more people that come into the ecosystem, the more applications get developed. it is good for many layer 1 took it in my opinion. i think what your users should also be hopeful that the merge

goes well. your viewers love to invest in companies like coinbase, one of the best companies out there, and that is a listed company. if the merge goes well, it will allow the concept of sticking to happen and individuals and its additions can earn 8%. that is a whole new revenue stream. if using the current formula, that could mean $600 million of revenue for coinbase. that is significant and it is very good for coinbase stocks. i think your viewers should be rooting for a successful merge as well. emily: it has clearly been a volatile year and it can continue to be volatile through the rest of the year. what is your outlook on how long this "winter" lasts? where we are at this time next year?

john: so, i personally think the winter will be here for a little longer. but what i am really looking forward to is please applications, new protocols that literally redefine the way businesses operate and businesses will be built. i mean, if you -- what you can do one organization is here in full swing -- one tokenization is here in full swing, the platform is the business. right now we are talking coinbase, it has 5000 employees, market cap of $16 billion, $2.5 billion of daily volume. a company in the defi ecosystem has $1 billion of volume a day, that is about 100 employees only. if you do the token cap, and the market cap to employees, at

coinbase it is about $3 million of value created by employee roughly. at uny swap, we are talking 48, 50 million dollars worth of value created by each individual. what we're doing is we're going to redefine what businesses are. the best part is the network effects that happen, they will accrue back to the users. sonali: i need to get your opinion on something. you were talking about staking. what is staking most like in traditional financial services question mark if it will be a bigger part of the ecosystem, coinbase might start making it a bigger part of its product suite. it is subject to regulation the way traditional lending product would be, or a clearinghouse would face? john: what it is does not exist in the traditional world. the way that value is distorted in the traditional world -- distributed in the traditional world or created, is in two ways , in labor, or in capital.

in labor you get paid for the value you create. capital, you put existing money to work and hopefully you get a return on it. staking is a combination of the two, you are taking your existing capital, helping validate insecure a blockchain and therefore, getting a reward. it is a hybrid. when you talk about how you regulate that, that is a really good question, because is it labor, or is it actually dividends and yields? it's not clear. i kind of think you are putting things to work, and that is the spirit of permission-less, it being part of the community, getting rewarded for your efforts, not necessarily putting your collateral down and getting a yield. emily: alright, lots to think about, john wu of ava labs, great to have you back as always. and our own sonali basak. thank you. coming up, more from microsoft gaming ceo phil spencer. his vision of a world where

children can play together, no matter what console they are using. that is next. this is bloomberg. ♪

emily: something else we are following -- sony raising the price of the playstation 5 console in major markets outside the u.s. by as much as 20%. it is in response to global inflation rates and currency trends impacting consumers, and creating pressure on multiple industries. i sat down with microsoft gaming ceo will spencer, to talk about the relationship with other platforms like sony. i first asked him why he is such a big proponent of cross-platform gaming. take a look at what he had to say. phil: ab happen to buy an xbox in your household and my kids buy a playstation and we want to

play together, but we can't. 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 at 3 billion people and growing to 4 billion people in the next decade and say, how do we continue to grow the business, reducing restrictions for consumers has to be at the top. >> does this mean that activation games, call of duty will be able to be played on any platform in perpetuity? phil: not for any nefarious business reason. it is just that, what do these platforms mean? i think the definition of some of these things may change over time. our expectation is we want more people to play. emily: i know you are working with sony on some things for the benefits of gamers. phil: we have a big publishing footprint on playstation as well as nintendo, which means we have good relationships with those

platforms. they are a big part of our business and we are a big part of theirs. our long-term ambition of where we see this industry growing is also shared. the area where things get stuck a little bit is in the near, midterm competition. if somebody walks into a store and they have one $500 bill, they will either walk out with a switch, which is what most people buy, or they will walk out with a playstation 5, or walk out with an xbox, or somebody will go buy a windows giving pc. somebody has to make a decision for one platform over another in the beginning. that is where i think we get stuck in the near term competition. . i don't think that is bad, it is just the dynamic of each of us pushing each other to build the best product for our customers. emily: you can watch the full edition of "bloomberg studio 1.0," with microsoft gaming ceo spencer at bloomberg.com, or check out the podcast. that does it for this edition of "bloomberg technology."

coming up friday, the firm ceo joins us to talk about the revenue forecast for 2023, its earnings just out. shares under pressure. as well as the future of buy-now, pay-later. and, don't forget to watch out our "bloomberg tech's" podcast wherever you get your podcasts, for the daily tech roundup. i am emily chang. this is bloomberg. ♪

>> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. >> this a paid presentationr) tg furnished by rare collectibles tv, llc.