caroline: i am in new york.

a: and i am in san francisco. it is all about earnings. this is caroline: the shared bloomberg technology. caroline: the shared reactions, snap a hard and forecasted the first ever quarterly decline. ed: we speak with the nikola ceo. caroline: bringing back the dodo bird? we talk to colossal biosciences. we talked about the here and now and the market that as you said, on a tear for the month of january and look at the last trading day. nasdaq is up 1.7%. we see risk appetite come in. the country world index is up over all, nasdaq on top, the rest of the world and asian markets are falling lower and

europe. u.s. what the standout. we are seeing money move into bonds, yields come down. a focus that we see more a dovish federal reserve. i want to point a light on what a month of january was. extraordinary 6.7% on the nasdaq 100. s&p having the best month since october. ed: i want to go straight to earnings because we are seeing the market reward those who are doing well and punish those. electronic arts is down 6.4%. the story here is around new titles released in the holidays, new videogames that have not done well. ea is such a big player the other big theme is semiconductors.

amd, very interesting, they are seeming to benefit from a growth in market share, particularly in service. they are so combat thing what everyone else's, the demand for those starting to taper off. the market rewarding what they see. caroline: we're so focused on intel, the worry that we have oversupply, amd keeps on showing it cannot -- keep coming out on top. ed: what do you do in times where you go to the bus? the market said, whoa. samsung is going forward. caroline: many seem to see that

is the realignment. let's talk about the short-term, here and now in the snap earnings. they were not good enough. it's the forward-looking guidance that sends the shares lower. they are down 14%. we are used to this company being volatile. we're worried about the advertising outlook. they are talking about a quarterly drop in revenue, guarding us lower in terms of revenue for the next quarter. we want to get into the devil of the detail. a principal analyst is with us. you lead the coverage, you focus on youtube, snapchat. you need not go on. snapchat does well in terms of

the amount of users. the control it has, the amount of impressions. why can't they converted into money? >> your right, the audience end user growth is not his problem. it has a stronghold on gen z, teens who love the platform. it's very different, focused on private sharing. it's invested heavily in augmented reality. the reality is, most of its user growth is coming from the rest of the world. the rest of the world monetizes at a lower rate. that has hammered revenue growth. ed: the range in topline, does that tell you snap has no visibility on how there are tweaks around direct responses?

>> it's a difficult sign for how the market is doing, the reality is, we have to be ready for a period of more modest growth. there are a lot of challenges, whether it's the privacy and policy changes as well as the volatile economic conditions. these challenges continue to persist and i'm expecting more challenges and more competition ahead as well. ed: one headline is about the forecast, the other is snapchat plus. the stock is down. does anyone care? >> snapchat users care. it's a future that has been able to draw engagement.

whether it's a way for them to keep users engaged, it is using the out more. >> users like it. let's talk about how they can convert advertisers. do they need more money from international growth? how can they start proving the direct response is where the american purchaser needs to be? >> one thing is it is a much smaller platform so it's more impacted by these challenges. one interesting thing to note is is incredibly associated with augmented reality, but that's only a fraction of ad revenues. there are challenges it has to rise to an one is helping advertisers understand the platform and how to use the

platform and features to reach those consumers. >> let's do the ripple effect. the fact meta is trading lower. is that the right view to take that this is industrywide or is this idiosyncratic? another name yet has bit on not just a are but vr. >> the challenges are affecting all of these platforms. i do not think it is wrong to be worried about the state of social media advertising right now. insider intelligence is forecasting the first ever ad revenue decline for 2022. that tells you the state of social advertising right now. ed: we have been covering twitter and its aspirations to go from 250 million to one billion. if you look at twitter and snap, is there growth? how do they grow to be more meaningfully global, to have

bigger factors of audiences? >> twitter is unique. a lot of his issues are self-inflicted. we are expecting the user base to decline both in the u.s. and worldwide by 2024. we are expecting a decline of 32 million worldwide. it is going to be an uphill battle for twitter to be able to grow. i think there is an opportunity to be able to increase engagement among users as long as twitter is able to hit on features that appeal to its audience and that is something they have not been able to do as of yet. ed: we will continue to track that. thank you very much. coming up, will 2023 b the year for nicola? my conversation with the ceo.

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ed: the doj is looking into autopilot and self-driving claims, they confirmed they have received requests from the u.s. justice department. they are looking at claims about features in markets as autopilot and self-driving, all part of scrutiny around the technology. the company said we have experience and expect to continue to face names and

regulatory scrutiny around what it characterizes as claim failures or misrepresentations. tessa says it's unaware of any agency that has reached the conclusion that wrongdoing has occurred. on the recent earnings fall, he said every time tesla sells a car it has the ability to have full self-driving enabled which he has as tremendous upside potential. ed: that is the doj. it was his friday bloomberg reported the sec is looking at comments musk has made around this area of self-driving as part of the investigation. the overhang seems not as important to shareholders, the prices of the cars, we saw shares rise despite headline.

ed: real momentum for tesla. earlier today, i caught up with the latest ceo is here in town for bloomberg after what was a tough year last year, i asked if 2023 will be a chance to reset. here's what he told me. >> the key message is we have the launch of the battery truck. this year, we want to make sure the energy infrastructure is there. we want to make sure we have an integrated solution. the chicken and the act together. a big focus is research around batteries. multiple sources of cell supply and an acquisition of this, how do you feel about your supply going into 2023? important decision for us.

the battery is important. the vertical integration is so important. we can't control the about agree, optimizer, improvement. we will move so everything is together. i think it's a big benefit. of course, there is a lot to do. ed: i want to get to the hydrogen infrastructure. battery electric is where you started. the guidance was short, 300 deliveries on the battery electric truck in 2022. romeo is interesting because before you bought them, they were offering these packs at a discount. then you acquire them and brought them in. how the economics worked out? is it the most prudent financial decision to go out rather than do deals with third parties? first of all, it was important

to do vertical integration. it's much better if it's in our hands. instead of negotiations with suppliers, to own the battery is important for us, and makes a lot of sense. >> i've been covering you since early 2020. part of the story the gets discussed less is your noxious planning to make a hydrogen fuel cell semi-truck, you're planning to build out the infrastructure to fuel the tracks, hydrogen supply. what is the plan for that? >> important point. last week we announced that is very important to have a brand for energy activities. what we want to do is offer a truck, and customers are expecting we offer both.

bringing these things together is really important, and at the end of the day, the customer will value that a lot. >> great interview. let's turn to summer earnings, electronic arts just gave a forecast for next bookings in the fourth quarter. this as they failed to offset a broader decline in revenue as covid related delays which several titles into 2023 including the remake of dead space. coming up, sony facing some challenges with its vr headset. but it all means. next. open ai has until to help classify content.

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to some teaching>> some of the s

with students who figured out they could use it to do homework and essays. employees, people at work and pretending to be humans. there is worry about using it for misinformation. open ai has been working on ways to flag when content is ai generated. not so fast. as you mentioned, it's limited. right now, they're only getting a 20% success rate in identifying ai generated content. more worrying, they are getting a 10% false positive rate. something that's human and flagged as ai. imagine if you are accused of

cheating when you wrote the essay yourself. not great. ed: i appreciate the technology is complicated, but best you can, how does this work? >> all the things are -- they took samples they believed to be human authored, labeled them, matched a prompt and try to use that to teach predicting which ones are human, which ones are not. some of the limitations here, it's not reliable on short amounts of tax.

below 1000 characters and can't do much. it's looking at a right answer, you can't tell that the correct answer will be the same regardless of who is writing it. people have been smart about these things. there are ways to edit and able to evade this tool. you end up in a game of whack-a-mole where people figure out how to change the ai. >> you have been across every step of the story since the start. unbelievable. great report. sony reduced projections of the vr to headset drastically. that's a result of what we have

learned what we learn? >> bloomberg news reported orders have been reduced. this is a big deal. right now the market does not have a lot of momentum. apple announced its headset in just a few months. i think overall about sony market in general including apple, samsung and amazon looking long-term. >> you bring us scoop after scoop, the question with sony's whether it's only servicing its own playstation 5, if it's a bit of a niche market.

i'm interested if they have enough content creation to make you want to splurge on these devices, the sony devices not too expensive if you compare the price point to apple, the problem is that it requires a playstation. there are plate -- people who want a playstation. so this is a device and only works on that product. the difference is they are completely standalone devices. sony is limiting the addressable market from the get go. required use. apple's requires an iphone.

ed: lets you samsung. big week. are you excited about what is to come? >> no. i think samsung's new devices going to be marginal. we're talking minor camera improvements. you're not seeing major improvements. these are going to be small upgrades. this term, the five s, 10 s. caroline: mark gurman, fascinating. thank you so much. let's get you to the music conversation. spotify reported growth at beat estimates.

active users has reached a must 500 million. the growth margin was better than expected. shares jumped most in a year. ad supported revenue climbed 14%. brent slowing spending. spotify announced its going to cut 6% of employees. coming up. we're talking the focus without xp. this is bloomberg. ♪

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really accelerating those declines in after hours. the forecast is showing new titles and the holidays have not gained traction. md chipsets are up. strong forecast is bucking the trend. i want to visit -- pivot to fintech. fair amount of news flow. paypal confirming layoffs. it's been cheered and after hours.

for a company, dealing in ai powered lending, a worrying sign. caroline: good point on the macro. let's dig more into fintech. american express just introduced business blueprint. you are seeing demand coming from small businesses. we are really excited. >> the first is, you will have customers more. easier, integrated ways to manage cash flow.

what blueprint lets us do is engage in new ways. they can come onto the platform and login, they could apply for a flexible line of credit, they can take a business checking account. we see this as new benefits. we're are very excited. >> you see it as a significant growth opportunity. where and why? >> we are a big part of small businesses in the u.s.. i talked about the small businesses, they represent about 40% of all u.s. small business card spending. 40% of that, making a payment comes to american express. it's already a big part.

post-pandemic. we saw this incredible formation in the u.s., over 5 million small businesses form. want to make sure as many as possible can navigate >> ahead. >> in the near term, the macro picture is bleaker. longer-term, who knows where the cycle goes. i was on the phone with the ceo talking about the slow down in payments. what are you seeing at the moment? >> the company reported 25% revenue growth and we went out and gave guidance for 2023, we are seeing strong spreading we did talk about small business, digital advertising, we have a broad range of small businesses that spent on many things. >> industry, maybe more caution,

a bit of confusion on whether it was the macro. talk to us about the fact that the business blueprint comes from an acquisition you made of cabbage. one that i know well. you're retiring the name. is that something we will see more of? what will this things become? >> we try to be led by what works for our customers. they know american express, they love american express and it was easy was part of the overall relationship. i'm interested in what you are seeing from a corporate vantage point. corporate travel, not yet coming back. are you hearing?

>> that's right. we saw corporate travel reduced materially, down -86%. as everyone got back on the road it is still not back to 2019 levels. my clients, they are beginning to travel some of those customer services, but it's been a slow ramp. it's an exciting growth story in the years ahead. >> a lot of that is technologically driven. i am interested in the talent you have. are you making the most of engineering talent? how does it look like for you? >> you mentioned the cabbage

acquisition. we are exciting about the products, tech platform. the people. we had a native, small business product and engineer leaders in industry. excited to bring them into team amex. we have been looking at acquisitions, we will continue to do that. >> thank you for coming in. it american express president of global commercial services. >> terrific interview. boeing has told bloomberg its hiring engineers who have been laid off from tech companies. take a listen.

we have never had trouble with that. to a thing layoffs make it easier? of course. it's about who you get, they always looking for the best talent in the world to take on the best missions. ed: he told guy johnson they are anticipating autonomous airlines, a matter of when, not if. coming up. rip to the nft etf. there with us. this is bloomberg. ♪

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focused on nft's. it launched at the end of 2021. it's going to close in february. let's test bloomberg. we know nft demand collapsed. is that why this is shutting down? >> it is. the ceo said the fund did not attract assets. it was as simple as that. remember that this was launched at the height of everything. nft, digital assets. i don't hear any of my friends

talk about them. >> all talking about ai. the prices have cratered. if the fund is not attract enough, it makes sense to close it. closer, you put thought into it, you probably spoke to management and i'm sure that they saw no future for it. i don't want to speak for them, but that is the implication. ed: is this a broad issue? >> it is. we're seeing crypto ets liquid. fund is different than performance. another we wrote about is the valkyrie bitcoin etf. the ticker is wgmi. that was among the best if not the best performer in all of the industry.

it doubled. it rose 100%. it attracted mining companies and crypto firms, and if you asked why, it's because the price is up 40% in january. it remains to be seen, fund is not there but performance is, therefore pulling up some prices. >> let's talk about that. it feels like a macro story at the moment. a lot of correlation between bitcoin, as much as many would like to see it fall away, it's basically treated like a risk asset. >> there was an interesting note i read and they said it trades volatile, a minute by minute rolling analysis found they trade more volatile, but has eased a bit. beginning in march.

they expect the downshift and to momentum. it's in contrast with the stellar january. if you asked why, because the fed redpath hike is not clear yet. we do not know estimates. the pivot remains to be seen. while the decision is set in stone, people are looking at the press conference and how hawkish jerome powell will be. ed: wonderful story on the terminal. don't fight the fed. is that extended to the broader crypto market? bitcoin is the biggest. i fit coin falls, everything

will fall with it. bitcoin is trading around $23,000. there will be upset for the coin. for now, it's been stuck in a tight trading range and a lot of analysts are waiting for the next big macro event. sentiment wise, it is sad. people are pessimistic with fallout, bankruptcies, scandals. ed: if you so much for joining the show. shares of sophia jumped after the company announced land each profitability in 23 and bloomberg ought up with the ceo on monday. unfortunately, we are the portion of the interview data, here is some of the interviewee held with him after earnings.

in this quarter, year-over-year we are up 51% so we exceeded expectations. we believe the driving revenue will be in a range of a problem $9 billion in revenue. we will achieve cap profitability by the fourth quarter of 2023. one of the important milestones is it was up significantly versus when you're ago encourage routed to the total for the year. that was equal to the stock compensation which is a critical milestone to hit on the way to operability. >> the optimism, positivity

coming out of sophia at a time where a lot of fintechs is being washed out in addition to consumer businesses like goldman , do you think the competitive headwinds is boosting the momentum for your own business? >> we took a different approach to the market five years ago and we wanted to be a one-stop shop for the major financial decisions in your life and all of the days in between. we did not cherry pick the most popular products, or the ones you can make the most money on. we picked products that would allow us to help you get your money, borrow better, say better. protect better and best better. because we are committed to those activities, we have built a durability in our business and a robustness that allows us to allocate capital to those businesses that are most in need

and leave us less vulnerable to different factors we have seen impact other companies. that is not to say we are perfect, where more robust and stable and that allows us to be more durable. the strategy has really come together. >> give us a sense of your goals? you want from something like $1 billion to $7 billion over the course of the year. >> yes, the deposit bases really critical. it only generated $1 billion in four years. >> that was the sophia ceo. coming, the unicorn is trying to bring back the dodo as in the bird.

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something out of a movie. $150 million funding round. the startup is trying to bring back the most famously extinct animal of them all, the dodo. here to explain is the cofounder. extraordinary, you got a lot of press, you are raising serious money. talk to us how you do it. >> press, the world is starting to pay attention not just to

climate change and the effect man is having on the environment, but the loss of biodiversity is at the forefront of a lot of conversations. with cop 15 in the world economic forum, 15% of all biodiversity could be extinct between now and 2050. we decided to build a company called colossal biosciences which focuses on leveraging tools and technologies in order to bring back these iconic keystone species like the willie mammoth, tasmanian tiger, and today, the dodo. our goal is to bring back the species, but them back in the natural habitat and public at large, leverage these tools and

technologies for human health care and give these technologies away to the world so conservations have more tools in fighting the loss of biodiversity. caroline: so many other questions. why and how you bring them back, but i am interested in the money part. $150 million. what is the reward for investors? is it more about the applications for people? >> it is. in science and universities worldwide, you start working on a paper or problem, that's a great point solution. some become incredible companies and innovations. what is really interesting is when you start to look at these big biology problems, a lot more innovations can come in different areas. with the mammoth, we are working on biology, engineering,

reprogramming, and advanced gestational technologies. similar to the moon landing, a lot of technologies were developed that can completely transform the world, including fundamental technologies. earlier this year, we spun out our first technology company which was a computational biology platform, because what we needed did not exist in the market. we ended up raising $30 million. ed: you talk to us about the money. a source told us that valuation was $1.5 billion. here's what our audience thinks about that. no. they think research and funding can go into bigger problems. i have to ask you the same question as caroline. what is the business model? jurassic park? >> for us, it's about developing technology. if you look at systems problems,

you can develop technologies. an hour for six months, we developed the technology which is a major platform which can be really helpful for human health care. there is nothing more pressing than climate change and biodiversity, and we need more tools. at sign companies like us to educate the public on what the value is, not just human health care, but conservation. ed: 30 seconds. there are concerns from geneticists about the extinction. can you address them? >> we love negative feedback. for us, when you do anything again bold, we love negative feedback. mainly if consent form. a lot of our earliest advisors that were negative towards us like ben shapiro is now talking to the world about the dodo. she was a big voice of

opposition. we have a policy that we run towards critical feedback because we want to do things in the best way possible. you can do that by listening to feedback that you get from the general public. caroline: thank you for coming on and listen to our questions. we thank you. extraordinary applications of money. that does it for this edition of bloomberg technology. wednesday, huge conversation. i'm looking forward. don't forget, catch up wherever you get podcasts. there is a lot to talk about. this is bloomberg. ♪

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