>> i am caroline hyde at

bloomberg world headquarters in new york. >> i am ed ludlow in san francisco. this is bloomberg technology. a rally for the nasdaq. morning on rates and we have not gotten to earnings yet. >> macro and micro as soon -- super important for names. met up surging off the earnings and plans to buy shares. getting into the short-term cost cuts and long-term goals as it waits court approval. >> my exclusive conversation with palantir ceo alex karp who has some pointed words or shareholders and potential new hires. crypto hackers store -- still more money than ever before in 2022. let's check in on the market and get to crypto in a moment. let's take to the nasdaq. as you were calling it, what a rally be software tech stocks particularly outperforming the relief from the federal reserve. we seem to be interpreting it as

a dialing back in the rate hikes. stocks surged up to percent higher since 2022. country index up .92%. we look across the chinese tech stocks that did well in the mornings rating. to year yields coming down significantly as we anticipate the terminal rate that we will eventually get with the thread -- fed slightly lower. money goes into the inflation hedge. it is a risk asset. let's look at what is happening with bitcoin, climbing and surging up more than 4% of the last couple of days. ed: so much action pre-fed as well. let's go to peloton. improving cash flow and the ceo barry mccaughey saying the company is back on the brink of extinction. i bring up this chart because look at how sustained the momentum was in the back. up 26.5% biggest jump on record. how quickly has that turnaround bend -- it been?

let's get to met up. short shares surging with a bullish forecast for the first quarter. we'll get into the numbers in a moment. boosting share buybacks to $40 billion. how much is the company buying its own debt? that is a question we need to ask but also when the call hits, how healthy is the advertising market? alphabet, parent company of google, shares jumping in after hours. is this a feel-good going into that because things are getting better for the ad space? i want to go straight to our bloomberg order alex who has the key takeaways from meadows earnings and the top lines. alex: the biggest thing will be the cost-cutting. meta has had some shaking ground -- shaky ground with investors over the past 12 months because of how much they are spending on things like the virtual reality metaverse. they have come back to earth it seems and lowered their expectations for 2023 for their cost to about 89-90 $5 billion

in expenses for the year. the icing on the cake is that is addition of $40 billion per share to their purchase plan. meta stocks sold off the most ever per year and 2022. it recovered a bit certainly more today by adding a bit to the buyback has gotten folks excited. in terms of the broader market and what we might see from alphabet tomorrow, i'm looking at the top line estimates the first quarter. for revenue, projecting 26-20 $8.5 billion. that basically straddles analysts expectations. there might be some clues under the hood here that the general malaise in the ad market is leveling off similar to what we heard from snap yesterday. as a earnings call get started here, i'm sure there will be questions on both cost, metaverse aspirations, and where that revenue stabilization is coming from. caroline: i'm sure competition with a company which you focus on which is tiktok.

it is notable that we are getting that push up in the shares. we are still half of where we are in the value of meta stock from this time last year. anything in terms of where their market share is looking for their own cannibalization with the fact that they are discounting and giving cheap hats on wheels for example? alex: that's an arrow it was really big last earnings cycle and i'm sure they will get questions now. reels is their answer to tiktok. it is short form video served up on algorithm. users like it. they have shown drives and getting users on board and spending more time there. it does not make as much money for them as other places where they could serve ads on facebook and instagram. last earnings cycle three months ago, they said this will be a 12-18 month process until they can close the gap. 100% i'm sure folks are look to get an answer on the progress on that front. ed: alex, you wrote that investors have been laser focused on spending but the 2 million facebook core platform

user base, 7 million growth from the same time last year. how surprising is that? alex: surprising because facebook has been around for 20 years. the rise of 70 million users and clearing the benchmark of 2 billion people using facebook everyday is an interesting little number four a platform that's been around for a while. they have been making changes to facebook and bringing in things like reels. they are listening to what users are liking from other platforms and bringing that into their legacy app. i am sure they will be bragging about that mark zuckerberg was in the statement in the release about that. also about what he is calling 2023, which is a year of efficient see. those two things definitely them to be the top two that they are selling to investors as they let out these earnings today. caroline: alex barinka, the perfect summation of what we have gotten the last hour or so. let's get even more of a deep dive for you. deborah is with us.

you are looking at the daily active users of face book as well and the engagement. both snapchat and facebook are showing people still coming to their platforms where they are adding eyeballs, but what about the actual revenues and adds that have been bought? deborah: it is a good sign straight out. it is a good sign that daily active users and monthly deplatform like facebook that is quite old in social network terms is still gaining right? you have to take that as an important sign. that said, i am pretty confident that the gains are mostly going to be outside of the war of advertising market which would be the united states and europe. that is where meta has been able to for a long time now generate a significant portion of revenue and be able to charge more for advertising, sophisticated advertisers.

so i think where you are seeing the dichotomy here is -- and this is true for snap as well -- is because the growth is in areas where there is underdeveloped markets or underdeveloped advertising businesses, that is impacting the overall revenue picture for the company. caroline: what is also to be put into perspective? i know you highlight it time and time again. this is an enormous amount of revenue this company is pulling in, 32 billion on a quarterly basis. revenue is down has been down for three straight quarters now it debra: absolutely. if we look at the full year, as we expected, met at close of the year with its first year-over-year decline in ad revenue. the downturn was slightly less than we thought, about 1% versus our expected to percent decline. that's not actually a good sign when you think and pullback 2020

which was a year when worldwide avenue grew -- revenue grew 37%. we have seen a huge swing in the performance of this company, partially because of external factors like the worldwide economy, the changes that apple made it to its privacy, the effectiveness and efficiency see -- of advertising. it's also true when you think about where mark zuckerberg has been focusing his time and attention, it's been on the metaverse. i think it's a mixed dent -- extent last year he took his eye off the ball. facebook and instagram are the two biggest worldwide social platforms. there is still room to grow. i think that was something that they are trying to rectify now going into 2023. ed: he called 2023 the year of efficiency which sounds like something shareholders have wanted to hear for some time. the other thing they like to hear is buybacks and more of

them. met up boosting their buyback authorization by $40 billion. we are sharing on the screen this chart. this is just meta writing -- buying its own dip? debra: insider intelligence focuses on looking at revenue and usage metrics. i can't specifically comment on that, but i think anything just bottom line that meta is doing to improve its profitability, to reduce expenses, to counteract this revenue shortfall is going to be good for the company. ed: let's talk about revenue then and talk about this week in aggregate. we had snap and meta. we are showing the shares on the screen up 18% after hours. alphabet also. how much can you take from this that things are improving broadly in the advertising landscape as a relates to social media players? debra: it's really hard to tell. we had to very different performances. snap yesterday pretty

unfortunate for the company. met up today a much more solid performance, but still, the revenue decline is something you shouldn't just kind of brushed under the rug. it's very, very notable for this company. i think going into some of the other players, obviously twitter is not reporting any more publicly, but we certainly see lots of challenge for that company. when you look ahead to google, google had issues last quarter with youtube. youtube competes very closely with instagram when it comes to reels and tiktok and netflix. these are all things that we pay a lot of attention to only look at the broader social media landscape. ed: debra aho, thank you so much for joining us. the other story we can get away from open ai. introducing a $20 per month subscription for a premium version of chatgpt. chatgpt plus will offer access

to the chatbots even during peak times with faster responses to tight queries and early access to new features. open ai is trying to find viable business models to cover the high cost of running its product including a first the multimillion -- multibillion-dollar deal with microsoft. coming up, peloton's ceo it says the company is no longer at the brink of extinction. see the share reaction to their latest earnings report, a record jump this wednesday. we will bring the reaction next. this is bloomberg. ♪

caroline: shares of peloton soaring as a company reported improved cash flow and a narrower net loss in the last quarter. ceo is saying the questions about the viability of the business were put to bed. have they? joining us now the director of internet equity research at evercore. are they put to bed? is extinction behind us? >> i think so. the question is not about extinction anymore. the question is whether this is going to be in epic come back which he said in his letter. i call it a very respectable come back right now with the pre-cash flow that they posted excluding some of the supplier related costs. what is becoming increasingly clear is this business is self sustainable on a pre-cash flow basis which is their number one priority was aired what is

unclear is what we should think about growth for this company. ed: mentioned a comeback. we asked our audience and this was evidence of the palatine come back? the results were overwhelmingly that people were not convinced. 66% of respondents. what does the consumer feel right now for palatine? how do we assess the user base and growth potential based on the bullish commentary from management? shweta: there is certainly a very good following for those who own the device. their score remains a very high. the usage and engagement with the product remains very robust and the retention rates are very high for this business will be compare that to some of the other subscription-based services. what is unclear is how many more of these internet connected home fitness equipment can be -- can they sell in the market? how fast is the industry growing

and can palatine grow faster than the overall industry? are they stepping out of the market opportunity or is it something that can grow in the double growth rate? the jury is out on that. ed: are you to interrupt but i was going to say the jury is out. as a look across the sell side reaction, the concern is we believe barry mccaughey in the near term. we don't have any evidence of what the growth story is two or three years from now. that seems to be the skepticism out there. shweta: that's exactly right. what is in their control is cutting down costs, headcount reduction and moving from fixed cost to variable cost as well as inventory management, better inventory management. all of that they have done and it's in the past. they had done a great job very him on -- since barry came on board. how much marketing spend will they have to do to drive

incremental demand and maintain positive cash flow profitability? also what is unclear among those who are not very happy with palatine is a relationship and outsourcing their customer service. the experience that customers used to have is not the same in terms of expecting the customer service that they have had as well as the delivery expectations of the equipment. caroline: yeah, have to build your own. i am interested in what they need to prioritize. is it like dick's sporting goods and amazon or is it about self investment ensuring they are updating the app as a need to and improving customer service? shweta: it will be a blend of both. it is very clear that customer service needs to be better than what has been the recent past, but increasingly important is the incremental user base that they will get. the key growth drivers that they will benefit from are not only

the distribution partners in increasing those and including more retailers but also international markets. they launched in australia and could expand into different countries as well as product categories, and what they call fitness as a service product. as well as certified preowned which if you own a palatine and want to sell that. essentially they are trying to make it easy for an average customer to buy this relatively more expensive equipment. ed: haslinda: they also relied on promotions and holiday season sales. thanks to shweta khajuria at evercore. coming up my exclusive conversation with palantir acl. that is next. this is bloomberg. ♪

ed: palantir, the at times mysterious data analysis software firm is making more commercial deals. it is a change of strategy for a company that has thrived in chaos when in government and military contracts from the pandemic and more in ukraine. i sat down with an exclusive interview with the co alex karp and asked him how investors should view his view on silicon valley and global perspective. alex: we are a company whose most important purpose is to power the west to even higher heights in the commercial and in the government space. we have done this in the context of pandemic, war, data protection. you can't do that if you are going to also transfer those technologies directly or directly to advertisers. we have never done it. ed: you were talking about how

you are a public company and have a responsibility to shareholders. at times in the last 20 years, shareholders have complained to you on why aren't you doing this? why are you not doing that? we talked about your strategy. investors have not cheered if you go up the share price performance. what is your response? alex: we are a company that has a primary mission. the primary mission is to make the west stronger and better. that mission has secondarily led to 61% cake or in the u.s. government. the u.s. rice is a red herring because all tech is failing. our shares have not been more punished than anyone else's. if you are an investor and want to go long on transforming our country and our allies, you have a home at palantir. i have never ever, ever wavered from that statement. if you don't want to invest in

us, you shouldn't. if you are investing in us think i'm going to change, you are making a mistake. we lay our cards on the table. there is nothing besides transparency here. when we went to the ukraine, i didn't ask them, can you pay us? i said here's the product. we started off in america and the pandemic and in britain, we said look, we can help. this is the primary mission of our company. and i think we are very aligned with investors because they are hearing the truth. i am not saying we might change is a bit of policy or we might do crazy deals in adversarial countries. might put other missions ahead of ours. no, i tell them that every day palantir in our retail investors, every time i going tv, you know what you are buying when you buy palantir. ed: it is very transparent. you have sold sock regularly

since -- stocks regularly since 2021. alex: the last year or so, i've only sold for tax reasons. they have been no financial sales. ed: i'm grateful to be here with you in palo alto. i'm surprised be here with you. you have talked about monoculture in silicon valley and you moved to the company to colorado. you have not come back often in the last three years. alex: because silicon valley has obviously failed in its mission to produce technology that is useful and makes the world a better place. we were i think the first reasonably large company to leave here now i am very happy to come back and say look, on occasion, our position is a position we are proud of and to be surrounded by people who disagree with me. ed: there are many woke engineers. i think those are words you used who lost their jobs recently at tech giants. you're looking at growth. our you're looking to hire those engineers?

alex: do not join palantir if you are not willing to support the u.s. military and its allies. you can have any political opinion you want as long as that's not a question for you. if it is a question for you, do not. palantir is not your home. ed: unapologetic and uncompromising. he knows where he stands. he is completely comfortable with palantir's offering to government to security services, and that was just a small glimpse of the man that many in silicon valley has -- have shunned because he shunned them. caroline: how in on the name are they? ed: before we put the interview out, which we did and the response is interesting. there's more engagement from retail investors than i expected. there is such a mystery around the company. unless you are doing business with them, you don't know what is that they are doing because they are bespoke software and data analysis offering. caroline: talking to you in

having these big events and talking about the public signing on of new companies, that is an era of transparency. colorado is interesting because this were tech stocks were born. we had to get over there and what else is being built. ed: he said silicon valley has failed but to be fair today they announced growth and the customers were in the bay area. that was the conversation. coming up, how the fed is today has impacted the tech sector. caroline: plus a record amount of crypto was stolen by hackers and 2022. we will deep dive on who is to blame there. getting geopolitical once more. this is bloomberg. ♪

caroline: welcome back to bloomberg technology. i am caroline hyde in new york. ed is in san francisco. the tech sector getting left off

today from the macros trends, from the fed. ed: this is the first big post fed rally since july. i will go to one chart which is nasdaq futures jump to year yield goes down. it is a snapshot of the story. we have one of the great bloomberg minds at joining us at the moment who can get into this. my point is very simple. 25 basis point hike in a morning from powell that while they are making progress on inflation they still four hikes to come. for the market, it's about windows the policy pivot come? in the context of tech, higher rates discount present value of future profits. that's what we look so closely at the relationship between yield and the nasdaq 100 or nasdaq futures in this case. you talk about bitcoin earlier but let's talk about risk assets. a pretty broad rally. i'm looking at the nasdaq 100. more speculative corners of the market like goldman sachs and nonprofits tech index, the stocks that trade at high

multiples extreme multiples, some relief for them because they have been the most downtrodden corners of the market through this hiking cycle . now we start to look if there is some more positive future. that includes bitcoin. you and i both said earlier it's a risk assets. caroline: inflation hedge? not yet. isabel is with us. you were bracing herself for the technology reaction to this macro story. let's dig into the tech shares in the rally on upwards. this is because they have been the most beaten up of late? isabel: yes they are making my job easier but a lot of tech shares have gains like the likes of meta, amazon, alphabet all north of 2% because let's face it, they were pummeled last year. they don't like rising interest rates because that's not good for them and their projected profits. now it is welcome news. they are happy and they celebrated it.

as ed mentioned to percent. will probably be just the start for them. today meta is trading while post market because of rosy outlooks. maybe it is the start of a new regime as some people have said. ed: on a day like today, there are two places i go. fed on the bloomberg terminal to get a idea of where we sit but then i go to bitcoin. you heard us talking about it. bitcoin the risk asset reaction. it is that a fair move by me to make? isabelle: it kind of is because bitcoin for some reason dipped a little bit around 231 when powell was starting to speak with an sword or percent. last i checked, it was up .3%. a lot of people said that bitcoin is behaving like a tech chair so it is obviously rising as well. i talked about this yesterday. arcane research site is going to be a bad month for bitcoin

because the fed's path is still unclear. we had a downshift today. are we going to pause or pivot? it remains to be seen but there are still some people who are very bullish on bitcoin. caroline: quite often the moves we see precisely after the fed announcement and press conference are completely undone the next day. we wait and watch for tomorrow as that price action news, but in the long term the bulls are very bullish on bitcoin. isabelle: 23,000 is where we are at today but according to the etf queen cathie wood,, cathay would, we will hit one million in the next decade. she cites several reasons that's 4200% higher from where we are today. one million is the bulk case. -- bolt case. we case is 258000 and the base

case is 682. whether it is the ball, the phase, or the bear, it's hard to imagine how we will get there, especially if we look at where we are today. this is not the first time she said the one million target. she said this in november when bitcoin was however -- hovering at 15,000. i admire how cathie wood sticks to her guns. a lot of people love her and a a lot of people dislike her. if anything, she is a woman of conviction i with a. ed: bloomberg's isabel lee, a very busy day for you in the cross asset team. we have a bit of a cycle to go. sticking with crypto, thieves stole a record 3.8 billion worth of cryptocurrency and 2022. that according to research. nearly half of it was from north korea alone. bloomberg's jeff stone has been writing about this in his report and joins us now. two stories, a terrible year for crypto markets in 2022 but also

a very bad year for those that had cryptocurrency stolen essentially. jeff: that's right and also a bad year for people who are stealing them in some ways if you use that logic, ed. this is a huge number, 1.7 billion of that 3.8 billion is stolen by north korean hackers. we know it's the same group according to the u.s. government that previously breached sony years ago. a lot of your viewers will remember that. they tried to steal upwards of $1 billion from bangladesh's central bank years ago also. the say busy hacking group really focusing on the same area that a lot of investors are. caroline: why are they doing it? jeff: it pays. it helps them get around tensions. the u.s. and united nations have come out very forcefully against north korea over the past few generations, and cryptocurrency is harder to track. it is easier to hide, and most important way, it is easy to steal.

if you think back to the weight of the u.s. intelligence agencies would have assessed that north korea was selling counterfeit cigarettes or using other means to get around sanctions, this is the latest iteration of that. ed: jeff, we talked a lot about north korea and their role in this. what about the other side of the table? what is the u.s. government doing to prevent theft like this? jeff: the u.s. is scrambling to educate companies and investors and americans about the risk involved here. this group has really bullied cybersecurity defenders for a long time, so what the treasury department for instance is doing is room -- releasing bulletins and advising hurco companies and crypto adjacent companies about the risk of hiring north koreans who are posing as non-north koreans in order to gather intelligence or work on projects or steal information for their

leader. caroline: anything that can make it safer? jeff: protect your password and be smart about which services you are using and watch bloomberg. caroline: well said. bloomberg's jeff stone. a fascinating story. thanks for coming on and talking about it. we have more to delve into. the software maker dyna trace is boosting earnings. we will talk to the ceo but also we will dive into the share performance of dyna trace but what is happening with meta right now. it is outperforming. will we get more in terms of the earnings call? ed: yes there is a calmness from the cfo talking about ongoing weakness in finance and questions about generative ai but is also focused on reels and how they will monetize it efficiently. the conversation we've had about tiktok and the competition from

snap earlier this week not surprising that reels came up in the call early. caroline: we will dig into vr. they seem to be getting the nod the court that they can indeed buy within a limited. we will delve into that part of meta. stick with us here on bloomberg tv. back in a minute. ♪

ed: shares of dynatrace jumped

after the company posted better-than-expected the financial results but crucially, also guidance. dynatrace provide software which helps companies monitor their computing systems and identify performance issues with a keen focus on ai solutions. ai worse it is. we are joined now with rick mcconnell, ceo of dynatrace. biggest jump for the share since march of 2020. you give guidance which is important. was this about pricing that you are able to win? was it about advantage over competition in terms of what you are offering? talk to what is driving the ability to give strong guidance? rick: thanks for having me. it's about the market or digital transformation overall in observability in our market which is around $50 billion phase, specifically. if you put those two elements together, you have a huge array of customers that are moving their workloads to the cloud.

as that happens, they need software that delivers answers and intelligent automation. you talked about ai earlier. intelligent automation from data that enables them to have the broad-based situational awareness to run their software. ed: i'm curious about competition and whether you are winning share or even displacing existing cloud platforms? we had bill from a service now on the other day. they are moving into this observability space. talk to us about how you are faring in that regard? rick: we are synergistic with service now deployments. a goat -- good number of our customers have that and they still need our expertise that we provide through our ai ops platform to enable their environment to work perfectly. that is what we strive to do. that's what we typically see. generally the biggest competitor

that we have is do, diy. that is where customers today are using homegrown tools and open source in a variety of other solutions to create dashboards. a dashboard tells you red yellow green your software working. when we does not tell you is where the problem is and how to fix it. that's what we can do on a granular level within the i.t. system. caroline: let's talk about the ai power behind it dynatrace. what's interesting is you go to the meta earnings statement and they are talking about their prowess in ai. we are talking about chatgpt and ai that is open. how do you make sure you have the right people that are secure and not being tempted away to other companies? rick: a lot of our r&d is out of austria and europe in general. this is where the company was founded. we have people all over the globe but that's really our hub for r&d.

it is a fabulous community of developers that we built over the course of more than a decade to create the ai ops engine that you talked about caroline. caroline: you are speaking very much to investor base it feels like. the quotes in your press release are talking about investing a thoughtfully and managing a business prudently and ensuring you have growth and profitability. is that still very much what you need amid these macro headwinds? you have to keep talking about the bottom line in the profitability, the margin. rick: this is an environment as you all report on daily at this that growth at all cost is sort of gone. the good news is we have always managed dynatrace with a balance of topline and bottom-line growth. the results of that is at least the mid-20's overall ar growth and profitability in high 20's in pre-cash flow. this is a model that investors

want today because it shows the cash flow generation capabilities of the company. caroline: push us forward and go deep tech and the artificial intelligence vision that you have right now. you are as you say, strategically investing. where do you invest? how do you envision the next five or 10 years for dynatrace? rick: automation, automation, automation. you can imagine how companies are doing i.t. operations and keeping their software working today. it's with an army of people sitting in front of a sea of glass screens looking at dashboards trying to figure out is that working? is it not working? if it's not working, how to fix it? automation is one of those areas of focus. secondly, focusing on big data and analytics in doing that in real time with no reindexing, no rehydration of data storage to make it fast, scalable, super performing.

thirdly it is around application security, which is yet another area that benefits substantially from being integrated deeply into the observability of the platform. those three areas are keen focus on our r&d perspective. ed: i will be more direct and ask you the same question. i'm looking at how much cash on your balance sheet and the commentary that caroline decided from your earnings statement. are you going to hire people or do layoffs what you do m&a and 2023? rick: not planning on any layoffs. based on the model we have, we have been able to modulate the hiring to manage to that model. we feel very good about it and we are continuing to grow. terms of other areas of organic and inorganic, we will continue to expand the company as we see fit. in an m&a area, we can expand in that fashion as well with smaller tech companies to

accelerate roadmaps. caroline: i have 17 byes on this stock and 10 holds a not a single cell. the price target is interesting. you will say you don't look at a price target or share price, but you are at it. how do you commence investors and overall analysts that you can go higher in terms of overall performance and market cap? rick: you are absolutely right. i don't pay much attention to it because i can't control it. what i can control is the performance of the company or what we tried to control the performance of the company. we have a strong q3, fiscal q3 that we reported on today and we are looking forward to continuing to convert that pipeline into q4 and continuing to perform in a balanced way from top to bottom line management that we discussed earlier. caroline: rick, great to catch up with you. thank you so much for your time. rick mcconnell, ceo of

dynatrace. coming up, we had to get back to meta and in fact, more narrative coming out from mark zuckerberg talking about cutting layers of middle. we had that route before. they talked about the reduction in cost and increase inefficient. we will dig into all that in a moment. the cfo is saying this is just the beginning of overall fully scrutinizing the hiring needs. the shares are up 18%. this is bloomberg. ♪

>> impression growth was primarily driven by the asia-pacific and other world regions. the year-over-year decline in pricing was primarily driven by strong impression growth

especially from lower monetizing surfaces and regions. lower advertiser demand and foreign currency depreciation. while overall pricing remains under pressure from these factors, we have continued to make improvements to our ads are targeting measurement that we believe are driving more conversions and better returns for advertisers. caroline: rick mcconnell, c -- susan li the cfo of meta. they are talking about the different phase of the company. they'd grew so quickly for the first 18 years of the company's growth. it is very hard to crank on efficient while you are growing that quickly. that's also, add, talk about where they are all growing in the longer term. it's towards a metaverse vision and perhaps acquisitions in that field. they got the first victory. the ftc judge has denied the request to block metas request to start the virtual reality startup.

the judge prevented meta from closing the deal until the agency decides to appeal. let's get more from washington. extraordinary the fact that they are getting pushed in this way. many felt this is her trying to be aggressive and it was denied. >> that was a little bit surprising. the ftc can still appeal. they have until next week to decide that. the judge gave them a one-week extension on blocking the deal until then. they called a hearing next tuesday. we will have a little bit more on whether they will keep pushing to block the steel or let it go through. this was the big or lena. the agency needs to be more aggressive and blackmore mergers. they find it -- filed a lawsuit and have a pending one against my soft activision.

-- microsoft activision. ed: refit reporting. bloomberg sources telling us about this decision from the san jose. you can see it as a win for meta or a loss for lina khan but there is no opportunity here to appeal. what are the chances of that happening and it being successful? leah: there's a couple of options for the ftc. they could appeal to the ninth circuit court of appeals in california. this judge's ruling directly. then the ninth circuit would rule on whether meta could go forward with this deal or whether it remains a block. the other option is the ftc could let meta closes, and then go into its administrative court. then there would be a longer trial focused on the deal. at the end of that, if the ftc wins, it could ask meta to sell this off. that is not too unlike what they are doing now with meta over the

instagram and whatsapp deals. they have a couple options for how they want to go forward. the third option would be to drop the lawsuit altogether, and let meta move forward with closing this deal next week. caroline: over to you, ftc. thank you so much for bringing us that. many had questioned the overall focus of the name change and focus on 20 30's when you eventually get profitability from investment and reality labs and acquisitions aired for the here and now, investors are liking this focus on the near term inefficiency. ed: this is the year of efficiency. that's it. the 2023 slogan for meta is secured. the first earnings report is brilliant. he is being asked about generative ai on the call and he is as excited as everyone else not at the expense of efficiency. this is a dull mark zuckerberg

and 2023. caroline: there were some investors pushing hard and wanted to see a pullback in terms of capital spending. maybe we will see more job cut. they are talking about the middle-management that still perhaps is under a lot of focus in terms of the effectiveness of having that. really, ed, this looks like a fascinating overall call. i wondering if the share price reaction holds into tomorrow. ed: we will have to wait and see. analysts might sleep on it. caroline: that does it for this additional bloomberg technology. ed: don't forget a lot to wrap up on our podcast. check it out on spotify, i heart or apple podcast. this is bloomberg. ♪

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