>> from the heart of where innovation, money, and power collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang.

emily: i am emily chang in san francisco this is boom check out -- bloomberg technology, coming up the next hour, twitter begins layoffs cutting the pr team from 90 people to 2 or more. they are in a massive drop in revenue as matt -- advertisers hit pause. experience ceo joins us there -- telling us about their plans to take on airbnb reporting record revenue. bloomberg analyzed one million tweets that they believe -- that some people believe -- application of the big lie on social media drives engagement. we will get to that in a moment, first i want to get a look at the targets after mixed jobs

numbers as investors brace for more inflation data next week. ed ludlow to walk us through the week that was. >> we made it, as the main point, happy friday, that is probably top of mind for most investors. it was a right finish for what was a terrible week for technology stock, nasdaq up 1.56%, the u.s. listed shares of chinese listed technology companies, the xo x up -- sox up 4.6 percent, the golden dragon up with its best daily performance since march. the yields are higher, a lot of nervousness. second-worst week for the nasdaq 100 this year going back to january and we saw that precipitous decline in technology chairs as we saw this new year. we know about the conversation

about higher rates the take away from the fed meeting is that the higher rates are here to stay. they are not being pulled back anytime soon. we are now more convinced we are headed for a global slowdown. the r word, recession grips us, and given what's we have heard in the earnings seasons, we are worried. embrace me to the movers of the day, not much just -- it brings me to the movers of the day, not much to say about twitter, look at tesla, down 3.6 4%, worst performer on the nasdaq 100, hold up do not adjust your tv set, atlassian down 28%, twilio down 34 percent, something wrong in the software percent -- sector. emily: you have us all paying attention thank you for removing

your glasses there. also happy birthday by the way. big birthday as i understand it. have a great weekend. i want to get to twitter now and a slew of companies pulling advertising from the platform. bloomberg's alex has been following it all for us. elon musk says there is a massive drop in revenue he blames it on activist groups pressuring advertisers over content moderation issues though nothing has changed next -- yet. who is leaving? guest: audi, gm, pfizer, big names are leaving. to your point, elon tweeting yesterday, tweeting a pole what do advertisers stand behind, free-speech or political correctness? probably a false choice for the brand, they look at twitter is a place but dollars and find return. that return is number one in

their minds. as we have seen twitter, the business, convulsing the last week laying off half of the workforce. questions around who is leading if it departments and elon trying to counter that by ensuring advertisers they will be moderating content on the platform. it seems like a lot of the big names are deciding right now to take a pause. i would say this is a pretty problematic thing for twitter. the lesser earning reports they had, they had revenues declined from the year prior in that quarter, elon is taking a company that is private and a million-dollar interest bill every year for the debt they used to take the money private. advertisers are the lifeblood and elon is coming in with some saltiness of them leaving the platform in their absolute need those dollars moving forward. emily: volkswagen, pfizer,

general mills, list talk about the layoffs. -- let's talk about the playoffs. employees getting emails early in the morning that they are being terminated, who is getting let go? is it the 3700 number? guest: it seems like it is inching to that 3700 number, you have some teams like the communication teams that has been completely gutted. losing 88 of the 90 employees. you have folks all the way across the board. one of the reasons advertisers might be pausing is related to how this is being handled. it is typical, and and acquisition or -- an acquisition or change of leadership or leaders to come in and take a live the land and approach things differently. the way elon has come in with emails, sometimes overnight for ploys and what employees are looking at as a coin flip has injected chaos into the

business. we see layoffs across the board. there are some areas he is staying and urging for the advertiser audience he is bringing tools back a lot for content moderation. areas like that he has made reference to in the last 48 hours. it does seem it is pretty broad-based across the company in terms of where the headcount cut is coming from. emily: in the meantime, twitter is being sued in a class-action lawsuit by employees who say their termination is awful or -- wrongful or under california law they cannot make big changes like this before six days have passed -- 60 days have passed. can you explain the lawsuit and how good of a case they have? guest: sure come the state of california where we are both right now there is something called a worn notice, employees have -- employers have to give a 60 day notice of laying people

above a certain threshold of people that twitter has cleared that threshold. this lawyer has led a suit before, similar to tesla. elon says that suit is trivial, you see how he could receive the suit today. the lawyer came back this afternoon saying she is happy to see somebody severance packages are paying out employees or the number of days, some employees over the number of days legally required. it seems there could be some activity on that case, certainly with the swiftness of the decision that was made, there are a lot of questions made -- raised around locality -- legality in the state of california and some other places were twitter has offices as well. emily: alright alex, lots of news, more and more over the weekend, thank you for bringing us the latest, will continue to what your reporting.

zooming out to the tech space at large, the nasdaq 100 dropping as the sector reels from economic uncertainty, we will get more on the big picture here with bloomberg's emily. is not just twitter, apple, amazon, where we see significant changes in strategy when it comes to spending and hiring. guest: we are seeing the stocks falling, in terms of how much they are impacting the overall market at think the story is really beginning to change as the that are reserved raises interest rates. i was looking at how much the tech stocks and the movements in the stocks impact the broader s&p 500 for a really long time in the last two years. the narrative has been, these megacap tech stocks makes up such a large portion of this to be 500 we cannot see the market gain without a strain. there if you look at the month

of october, four of the five largest megacap stocks in the s&p 500 posted a negative return. we saw the s&p 500 gain 8%. if an equal weighted index was higher come it is a most 10% there, it seems that investors can play the broader stockmarket and they do not need the tech strength they needed before. with this federal reserve tightening weighing on these big tech companies. emily: what our money manager saying about this are they getting skittish? guest: it is interesting i was at and investing conference last week, there were not a lot of conversations about where can i invest in tech? the mork what -- the questions were about value stocks, how can i position my fixed income portfolio? we were talking about technology stocks, he said he would probably not go overweight, but

the valuations have come down in that sector. that is attractive. when you look at overall money managers they are thinking about value stocks more than, oh my gosh i need apple overweight in my portfolio. there is some here that the federal reserve tightening his getaway on the stocks more than it already has an earnings have to come down even more. emily: thank you so much for zooming out, embarks emily -- bloomberg's emily. experience ceo talking about the travel rebound, competition with a airbnb and if people will keep spitting on vacations of the economy continues to go south -- spending on vacations of the economy continues to go south. this is bloomberg. ♪

emily: the fed tried to tamp down affordability, but people continue to pay top dollar for experiences. experience posted record third quarter revenue, $3.1 billion, more than double between 19 levels. see -- 2019 levels. peter joints me now, let's talk about the bigger picture. people are continuing to spend on travel. i know we have some hurricanes that interrupted some of the flow. outside of that, how good was the summer travel season? guest: the summer travel season was great. it was everything most of us expected. tons of pent up demand. anywhere in the world people could travel, there are parts of the world, where the still quite

difficult to travel. there is more to come when it comes to opening up will travel. summer was great, business continues to be quite strong and demand has not ebbed since then. everything so far looks pretty good notwithstanding all the macroeconomic worries you talk about all day. emily: if we head into a recession, i know people are spending money on travel to this point, who is the say people will not say, maybe i should not take that vacation. let's just drive to a vacation rental nearby. guest: yes, listen, i think macroeconomics will be what they will be. so far what is been demonstrated, while there has been a few cracks in other categories travel is not cracked. people missed it during covid and they realize how much they wanted those expenses more generally.

we see corporate travel and other pieces come back. i think we have some good running room. there is nothing the same people cannot start to change their minds. remember, global travel is a $2 trillion plus industry. this is not a zero-sum game, we are a global company, we build our base of members, build our business up, offered new tools, we believe there is reason to attract travelers. even if they are trading down or making slightly different adjustments to travel they will still travel. emily: do you think there is something fundamentally different in terms of how people approach travel? this is not just a few vacations they want to get out of there system, but a whole new frame of -- their system, a whole new frame of mind? guest: anytime you have an existential threat to life on the planet people respond that they want to live, there are places they want to see.

people my age and older that say i only have so many trips left in my life. there is a lot to get out there to and covid made us reassess that. i would not chuck this up to hybrid work, -- chalk this up to hybrid work, people believe that life is great and people want to travel. everyone wants to travel. we have not used up that desire yet. in five years from now has everyone gotten out of their system? maybe, we have not burned off in eight months or 12 months. emily: airbnb had a tough quarter from a market perspective unlike the positive reaction received from investors to your result, what is happening there? guest: i'm not sure what is happening. part of what we observed and what we saw with airbnb they are a much broader company. they appeal to much more room

rentals, parts of home rentals. we do not do that. the scale of the business is such that that is a market that may be seeing more weakness. we as a business are less exposed to that. our verb rope brand is middle to upper market -- verbo brand is middle and upper market. we do not see the same cracks. if you are exposed significant lead to the broad global lower end you will be under more pressure. we think they will do fine, fx is a travel globally as well. we are heavily weighted towards north america that is great because it dollar is strong. if you are weighted differently that can have a bunch of different impacts on you. emily: adr, average daily rates is still above pre-pandemic levels, airbnb and some european -- some of your competitors

expect that to moderate. do you expect softness going to next year? guest: we have not seen it yet. the makeup of our business mix is somewhat different. hotels, the big chains are talking about holding adrs. hotels so far are willing to be less full in favor of holding price. does that last forever? do some chain -- hotels change what they do? hard to know. while demand remained strong, there is no end in sight to prices being up, they are considerably up cents pre-debt -- pre-pandemic level. that will probably hold. the home rental business is more volatile because you have single owners and is more price pressure. in the hotel and airline industry i think prices will remain high. guest: last -- emily: last question, verbo, give us a

picture of what you see going into next year. guest: demand has remained quite strong for us, other than the hurricane dimension at the beginning, we have seen strength throughout covid. since covid has somewhat subsided, we are very bullish on next year. verbo is going to become part of our global loyalty program rolling on the year. they'll be a great opportunity for verbo members to participate and other members to participate in verbo. we think there is plenty of room to grow, we are more aggressive and that space in weeks like to add a bunch of supply. we feel good about the brand, good about its part in a family of brands, and its part as we consolidate loyalty plans. emily: ceo of expedia, and vice

chair, thank you for joining us. coming up cyberattacks continue to surge in an increasingly digital world, will diving the new data from rubric about what companies should do to protect themselves. this is bloomberg. ♪

emily: cyber attacks are picking up. according to new data from the cloud data management and security company rubric. i want to bring in the ceo and cofounder for more on the new report. you found that 90% of companies reported a breach. -- 98% of companies reported a breach. that is a staggering number walk us out a little bit. guest: it validates our

business, we expect that almost all the organizations in the world have been infiltrated, what people reported is that 98% of the companies have had one silo breached. what is interested -- interesting is 76% of the company said they would pay for ransomware to get rid of the problem. that is how low the confidences. emily: how are companies responding to the threats, are they ready? guest: i do not think everyone is ready, although there is a partnership, public and private, the biting demonstration put together a zero trust framework -- the biden administration put together a zero trust framework. everyone is asking how do i keep my business going? what do i do to make sure that we are not only preventing and detecting these attacks, but also great resiliency where in

spite of an attack i can keep going. emily: there is an ongoing war on ukraine. you have instability at twitter that is a major platform. you have midterm elections coming up in the nine states. our -- in the united states. are you expecting tensions to ratchet up? what is your concern? guest: based on state actors that are taking sides, you have the midterm coming up, you have cyber warfare going on. i think in this situation businesses have to think that attacks will happen, there's no way to prevent it. how do they keep going in spite of an attack. how do they create a resiliency plan? how do they recover from it? that is where they are investing money we see in the whole market, the recovery, the ability to identify what part of the data was impacted and how to get rid of that content and

recover good content that's is what everyone is focused on. emily: is public-private engagement between the biden administration and the public sector helping or do we need to see more? guest: we definitely need to see more here, it is a great first step. what happens, there is a natural hesitation of sharing data between companies, one must come across and say we have been attacked we do not have the right defenses. when the government comes in to the picturing creates a framework for sharing information, what kind of attack happen, what kind of measures did you take, that helps company's get more confident. confidences required, a third of the board has no conference -- confidence that their companies can recover from a cyber

incident. emily: staggering new data, rubric ceo and cofounder, thank you for sharing that with us. coming up, elon musk, content moderation. what are the big concerns there ahead of the election and the impact of the marginalized communities that face the most hate online, the president of the color of change is with us next. this is bloomberg. ♪

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emily: welcome back to bloomberg technology i am emily chang in san francisco this get back to elon musk's takeover and what it

means for the future of free speech and content moderation on the platform, my next guest has direct insight into this. he met with elon musk a few days of talk about it. rashad is a present of the -- president of the organization color of change. how did the meeting with the longo -- with elong go? >> the meeting we had on tuesday was both a good opportunity for us to have a conversation and we walked out of the meeting, really focused on, hopeful that his actions connect with the words in the meeting. he made three commitments in that meeting. minutes around election -- commitments around election integrity, commitments around we platform in after they were taken off for the grecians but

-- egregious violation they were deplatform for. he talked about the sentiments those of us in the civil rights committee brought up during that meeting. we left the meeting wondering what would come next. at 1:30 in the morning the next day he tweeted out, tagging us in that sweet talking about the meeting. making those commitments more public. over the last couple of days we have seen him truly, and systematically dismantle the very infrastructure that would make those commitments actually real. the firing of safety and trust capacity inside of twitter makes it impossible for him to deliver on the commitments and promises he made in the meeting. the thing is not just value words, actions and the actions are key here.

emily: you are taking action by highlighting them move in the tweet, say elon musk fired the entire team to identify the twitter algorithm amplifies right wing voices over others. not the first time we have seen staff particular black employees, punished by -- musk said today there was a massive drop in revenue given a pause from advertisers, although according to him with is changed about content moderation yet. what you say about the folks that say let's give elon musk some time before making drive -- dramatic moves? rashad: that is what we did, we met with elon musk and he came out and made promises publicly. almost before the ink was dried on the promises he dismantled the infrastructure that would keep those promises in place. elon musk also met with

advertisers. he met with coalitions of folks working with advertising. in those conversations he made promises to them. he talked to them about how content moderation was incredibly important and how he valued content moderation. then he went and let go of 75% of the staff that works on content moderation. the advertisers that are leaving because -- are leaving because they are concerned their brands will be next to a product, the ceo in charge of it cannot be trusted. cannot be trusted to deliver on promises, acts in deeply erratic ways, and puts ranz in harm's way. at -- brands in harm's way. as someone who works to be actions with words and hold them accountable to that, i've never seen so many advertisers not have to be convinced. not have to be pushed hard

around this sort of decisions they are making right now. quite frankly, elon musk did have an opportunity when he came in here to actually move things forward. twitter was not a perfect company. twitter was not doing everything well before elon musk took over. what he has done is actually dismantle the type of infrastructure that actually had to be increased in order for the company to live up to any type of commitment. to deal with misinformation, disinformation, amplification of hate, incitement of violence that has become a part of this platform's current engagement and legacy. emily: the reason this is so important, is because people of color, people in marginalized communities, and women face a disproportionate amount of harassment and hate online.

can you explain why this matters? why this matters for people who use twitter? how he restructures and reframes the site? rashad: yeah, essentially what we are dealing with right now is not just twitter. all the technology companies are essentially self-regulating companies. self regulating cap these are unregulated companies. if we thing about -- other industries, our seatbelts are not necessarily safe and the cars are not safe because of the netherlands of the auto industry alone. they are safe because there is infrastructure accountability standards. we think about the ways of the is is models work of social media platforms, what gets amplified, what is the incentive structure of what drives profits? however ties it is placed up against certain types of -- advertising is placed up against

certain types of content and how that content gets prioritized. you watch a certain section of choices being made that are far beyond freedom of speech. freedom of speech is not the same as freedom of -- to be amplified, freedom of reach. you see come please make these types of choices, and then you look at the overwhelming body of research that shows, you can look at a recent university of cambridge steady who is getting more region who is not getting more reach. even the safety and trust teams inside of twitter pushing for more visibility and transparency about the twitter algorithm. those people being let go. the impact is clear, the consequences for those committees can be life and death in terms of how people are targeted. how people are exploited. how people are put in harm's way.

when you have an unaccountable billionaire running a company that feels like he does not have to listen to anyone the best that we have is a type of activism to hold this platform and leader accountable. we have to speak truth to power. we have to hold folks accountable. we have to invite those who have a stake in this, even if they do not see themselves as active as who believe in democracy and fairness to actually speak up and put their hand on the scale as well. emily: last question, the timing is critical, we are heading into a midterm election, in just a few days. talk to us about the importance of that, we are about to talk about a story about midterm candidates amplifying misinformation getting the most engagement. rashad: that is not an accident. what we are seeing in the terms of misinformation and disinformation is not a car accident. it is not just something that happens.

it is manufactured. when the tech platforms choose growth and profit over safety, integrity -- integrity and security they create a rupture where they believe people will do for from it. there will be rewards for right -- it. no consequences for it. even the changes recently, the eight dollars for month that could seem almost fair on his face that elon musk is charging for verification. if you're not can it verify the identity, that he did not talk about -- commit to, although he did talk about verification on tuesday. all the information coming out now is that they will not have time to develop a verification system before they will let out. they can have folks claiming to be verified, and them renaming themselves cnn or bloomberg. renaming their names under the auspices of the georgia

secretary of state. then making claims about the election under a verified blue check. because verification can be bought now, and not have some set level of accountability. we watched after elon musk bought twitter, the rise in the use of the n-word because his followers believe they could now say that. they could now move hateful language on the platform because he would support it. we have seen the increase of cueing on language and terms on the platforms since he decided he was going to buy it echo in april -- april. over 50% of the accounts from mid-october to now, they have amplified qanon words and phrases have come on sense elon musk announced he was going to buy this company. we have watched, but the people around him, the people that are fans of him, the people that are supporting him act out in ways.

that we watch elon musk validate that. even his own hager on the plat -- hager on the platform amplifying an anti-gay in spirit see. against nancy pelosi's -- conspiracy theory against nancy pelosi's husband rings is the question is he truly serious -- brings us the question is he truly serious about leaving the company? i have never seen someone respond this way. everyone should be concerned. emily: to be fair he did delete that tweet. you are right it did come out in the first place. thank you for talking to us about why this matters so much. president of color of change, thank you for stopping by. coming up how venture capitalist are cackling the potential of -- calculate in the potential of web3. this is bloomberg. ♪

emily: for today's crypto report we are focusing on the web3 fundraising landscape with the -- with shelley bostic in new york, joining us now. >> the third employee at coinbase, thank you so much for your time coming see that little rally here. not just bitcoin, you are seeing it in a lot of alt coin. i would love your perspective in terms of how that that's how long that holds when it is so

volatile and if it matters? guest: thank you, the big thing we are focused on, seeing how the markets have changed, looking for progress with user adoption. i think our interest is seeing the cryptocurrency space expand even more than a has today. we are excited to look at new, and new knew traction, adoption -- any new traction or adoption as we invest in new companies. >> i am curious what types of investments you would make in this phase, are there changes you would avoid for the market at large? guest: our strategy is remained relatively similar verbal and their markets, we have seen a number of different cycles. what is important to us is investing in generational companies and protocols we

believe can stand the test of time. we invest across the space everywhere from consumer, to infrastructure, right now we think there is a lot of interest -- exciting opportunities for infrastructure. given the slowdown in the markets we believe it is a good time for developers to come in and prepare for the next wave of usage and adoption. we can let allow look -- let a lot of people use cryptocurrencies. >> i am curious what you see in terms of jobs, investing in new people, and different spaces in this industry. a couple of days ago we reported galaxy digital what the cutting a significant amount of its workforce, do you think the industry faces a lot more pain when it comes to the workforce? guest: i think we are lucky, one important exciting trend about a lot of crypto companies come as they do not require as many

employees to run. where we see a lot of large web2 companies struggle is that they often over higher and higher a lot more than they need to run the service. a great part of the web three spaces may the protocols and -- many of the auto calls and companies are run on ethereum or protocols and allow them to operate with less. we want to be cautious with our approach and advisory -- and advising our folio companies not to be -- a structural change in the way web3 companies are relative to web2 companies. >> what you think about ethereum post-emergent what does it mean for its competition to pick one?

-- bitcoin? guest: we see a lot of exciting development on the ethereum blockchain, developers continue to build applications. a lot of demand for everything from defi to nfts and even transactions. we see a lot of interesting opportunities built around it three or him. -- ethereum. there is layer two roll up that allows you to scale transactions even further, overall seeing a lot of traction from traditional companies hoping to tap into the web3 market. ethereum and its related projects is way to do that. we are excited and happy about developer adoption and we continue to track it very closely on it.

-- closely on a theory of. >> earlier this year we had companies with issues with liquidity, you are part of them with coin flex, what was to be learned from that? guest: these are good lessons to be learned from the space overall. they teach these companies risk management. i think in some ways the farolitos we saw in the space were not because of web3 protocols and the smart contracts did not work or anything like that. they were at failure of the meat space agreements, real-world legal contracts. attesting to proof of funds or anything like that in a number of cases. that is what failed. in some ways it is highlighting systemic risks that exist not only in the crypto financial space but in the broader financial industry as a whole. it overall strengthens most --

both defi, but the crypto and financial space overall. >> thank you so much for your time. back to you in san francisco. emily: sonali basak, thank you so much. coming up as the midterms are fast approaching was the impact of this information still running unchecked online like the falsehood that donald trump won the 2020 election? what are social medias companies doing about it? we will talk about that next. this is bloomberg. ♪

emily: i want to continue our conversation about the midterms and content moderation. not just on twitter we are talking about facebook, youtube, other platforms. bloomberg advertise hundred the candidate social media serve --

post and found rampant disinformation. bloomberg's jack gill import through it all and joins us now with more in his research. what did you find about candidate amplifying misinformation, specifically the big lie, how me of them are doing this? guest: emily, we took at -- a look at all the republican candidates, not just for congress, secretaries of state, governors, attorneys general. we found 160 candidates have been pushing the big lie. the false theory, this conspiracy theory almost that donald trump one the election and -- won the election and joe biden is a legitimate president. we are looking at how the candidates are running for office, some that may win tuesday night, how they push it on platforms. now that twitter has a new owner and facebook may not be wait --

labeling these ads. emily: how did the companies respond when you went to them with this? guest: twitter did not respond for comment. we are not sure because -- if that is because the communication team has been laid off in the past day. facebook essentially said, look, in their view we deal with the larger issues. preventing people from voting, violence, they run ads encouraging people to vote. saying that this not election this information this is the real deal. the real question going forward, why do a lot of the ads are not flagged. we found one ad for kari lake, the fall selection claim was flagged by facebook, a majority of the ones we found were not. emily: just three days to go before the election.

how are you expecting potential amplification of this to ramp up before november 8? guest: it is no secret that a social -- that social media is an important avenue that hundreds of millions of americans use. it is no secret that russia tried to hijack that in 2016 ahead of that election. it will be interesting to watch. we have new ownership at twitter, what they would do in terms of content moderation. we have facebook that has not labeled a lot of these ads that are clear pieces of misinformation about between 20 election. -- 2020 election. it will play out in votes not just being cast on tuesday, and states like arizona, hollande valid and early voting going -- male in ballot and early voting going on right now. emily: what do you expect to happen, as the elections happening, at industry in

turmoil. whether it is because of elon musk or a broader economic turn down, these comedies are scrambling for revenue. guest: it is good question, these companies will have to grapple with a serious issue of misinformation. this has taken a foothold in the republican party that we have found in this analysis. we will see what happens, come tuesday. emily: jack, thank you so much for your reporting that does it for this edition of "bloomberg: technology," i am emily chang and separates go, have a wonderful weekend everyone. brendan carr will join us next week. this is bloomberg. ♪

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