Big Tech Selloff and AMD Earnings

post earnings. We're gonna talk to a MDC at least to sue about how she is still driving massive growth amidst forty year inflation, lockdowns in China and an ongoing chip crisis. And Uber shares down now multiple days in a row despite releasing earnings early to avoid lists market wipe out. Our conversation with Uber CEO Dara Kazra Shay later this hour why he's confident about demands and consumers on the road ahead. We will get to all of that in a moment. Be first to look at the market.

Stocks plunge with bonds in a violent reversal from Wednesday. The Fed's decision to raise rates initially boosted markets, but tech stocks have since had one of their sharpest U turns ever. Bloombergs at Ludlow here to break it all down, and yeah, you're completely right. Only and the long list

of superlatives. Right then, has that one very tech heavy index having its worst day since September twenty n y s Fang plus index, Megacaps the US listed shares of Chinese techcos having its worst day since September twenty twenty. You look on that screen US tenure yield, the benchmark ten year treasury with the yield about three percent for the first time since November two thousand and eighteen. That's

just a snapshot in time. That's just Thursday session. It's a complete U turn, as you say, reversal from what we saw on Wednesday following that FED decision to raise rates by fifty basis points in the commentary from FED pal around that. In fact, you look at the NASA one hundred over the course of two days, right, we bring that up on the screen and just think about the overnight change in psychology. We went to bed Wednesday night thinking the Fed's got this fifty basis points in

line for the next few meetings. No discussion of a seventy five basis point hike. The FED has this, they can fight inflation without bringing us into recession. We wake up and its complete different story. We're worried about stagflation. We're worried about the FED doing enough to combat what we're seeing with the inflation picture. But also there was a lot of fighting talk from Power. Write Emily. He's talking about the strength of the economy, the tight labor market.

And then we have earning season corporate America hearing some really positive noises. Hard to get my head around, indeed, and you know there are a number of former FED officials who didn't agree that this was enough and that this would be plunging the economy into a recession. I spoke with Uber CEO dar Kazra Shahi earlier today about their earnings results. We've seen their stock slide now multiple days in a row, despite a different picture from lift.

Take a listen to his reaction. We're focused on what we can control. Can we build a great service UH and can we ride the reopening, both in terms of growth, bookings growth, profit growth, ultimately free cashul growth and the answer based on a results and based on what we see going forward as a resounding yes. And what do you make of that? Yeah, well, the share performance speaks

for itself. You know, they gave a pretty bullish outlook the demand is coming, you know, and echoed what Lift was saying, and yet they had their worst two day drop on uber stock since March. They were kind of caught up in the contagion we've lift. There's no hiding place here, right, Let's look at the megacaps and how some of the biggest names in the world of technology performed on Thursday. Some of the worst performers on then

as that one hundred. I had to look twice on my Bloomberg, but this was the worst day for Apple and Microsoft since October. You know, they're not just sensitive to what we're saying with higher rates, rising yields, but there's also now a discussion about well, what's going on with supply chains globally and the situation we're trying to lockdowns. You've got a pretty good guest come up next to you, has a strong view of ninety strong indeed ed, thank

you well. It was a nightmare on Elm Street day for the nastack. That's how my next guest is framing today's sell off, Dan i'ves, managing director of Rubbush Securities, joins me. Now, so Dan, what's your take on just how bad this nightmare is gonna get and how long it's gonna last. I mean, look today, if you look at I'll call you the declines relative to the advances over I mean just to sell off. I view it

almost we're nearing some sort of capitulation stage. I mean, my conversations with tech investors were so negative today it's almost bullish, and I think I just continue to point to this is just a white knuckle period post fed that I believe we're going to look back and some of these quality tech is way over sold. You know, if you're willing to hold it through this roller coaster, why is it hitting tech harder than other sectors. I

think it's a few things. I think. First off, I mean you're seeing a de leveraging degressing across the board, and obviously a lot of institutions really wellevert to tach. I think the other thing is that with all these high multiple names and even ones that that that are not even expensive names like Apple, Microsoft, in my opinion, you're just seeing right now the street being like Okay, I don't believe numbers into the next year. What am I gonna pay? I'm totally uncertain. I'm just gonna sell

these names. And I could just tell you cover in Tech twenty two years. The only time I've seen times like this in O eight, o nine and even going back to the early days of COVID. So I think we're starting to get that panic stage. And then it's like I talked about, mean you look at earning season, it's it's to have and have nots but enterprise, cloud, cybersecurity, strong, SEMIS because we as obvious at leasas who will talk about strong, So of course the other side hugely we

e commerce and other names. But I think we are starting to get to what I've view is in this horror show opportunities. We saw Lift lose a third of its market value yesterday and another gem from you you called their spending guidance a nighties rock star like disaster. Uh Uber shares also getting caught up in that here despite a very different outlook. What do you make of

that look? I think if you look at Lift, I mean, something just doesn't connect in terms of that conference college I probably is probably one of the top three worst conference calls I've heard in twenty plus years of Wow doing this, and I think part of it is just they couldn't explain why they're spending. The driver's shortage is there, but even as you were talked about like, it's not where it was six months ago, even nine months ago, So spending so far ahead of this it was a

head scratcher. And you know, I when I look at what Uber's doing, I think that obviously in sympathy because these stocks trade almost starts being huts, you know, they're almost combined in terms of how they trade and pandem. I think Uber's way over so with clearly in the investment penalty box and need to prove themselves. But I think this was just way too aggressive spending that I'd be surprised if they ultimately spend that when it's all

said done. Uh. In other news, I want to ask you about this long list of unusual names that have joined Elon Musk in his deal for Twitter. Larry Ellison, who's of course on the Tesla board, Andreas and Horowitz, Sequoia, the Qutar Investment Authority and Finance. What do you make

of how this is coming together. Look, I think in this poker game, Musk obviously got Twitter and then ultimately it was about the financing component to ultimately undo a bit of his burden in terms of whoeveraging his Tesla stock, both in the debt and the equity. Look, this is a who's who in terms of who he got, you know, from both coasts and even globally. Ellison obviously you know, a huge confident. It is not a shock, but you go through from injuries in a sequoia, the fidelity and others.

I think it also just shows Musk is not just doing this aloon. He's going to have a team strategically, even though you know in theory could be temporary CEO, I think over time he moves more of a chairman role, and I think that's something that even on an overreaction today, his golden child continues to be Tesla. All Right, Dannas web Bush As always appreciate you joining us and your metaphors.

After surging post earnings to its best day in months, A and D also getting pulled into the cell off the chip maker posting more than five billion dollars for the quarter and raising it's full of your forecast I want to bring in a m D CEO, Lisa, so now to talk more about her outlook. Lisa, thank you as always for joining us. Look, we're seeing the highest inflation in forty years, lockdowns in China, which is a huge production hub for the chip industry, and a major

ongoing war. How is it that you are managing to post se growth and raising your full yer forecast. Well, first of all, Emily, it's great to be here with you as always, and UM. As you said, there are a lot of things that are going on UM, a lot of differ disturbances around the world. But you know, for us, it's really about focusing on our long term strategy, delivering for customers and our partners, UM ensuring that we're getting new products coming out. And you know, we have

a great strategy. We have a very very strong product portfolio for this year, and we're excited about the growth that we saw both in the first quarter and then more importantly what we see going forward. You know, it's a it's a really great time to be in UM. You know, the high performance computing market and this is where our focus is. So yeah, we were very unhappy with the growth that we're seeing big tech is underwater. A m D got caught up in the sell off today.

What are you preparing for in terms of how you plan to navigate a very uncertain macro environment. Well, you know, Emily, I think the important thing is for us to focus on, you know, the big picture. I mean, you know, a m D today is such a different company than we were even just a few years ago. You know, we completed our acquisition of zy Links, which has you know, um, you know, a set of markets that are a diverse

set of markets. And then when you add that to our data center strategy and the progress that we've made in the data center, I think, you know, what we're really doing is trying to navigate. Yes, there are um a set of macro issues and and also geographic issues that we're dealing with, but fundamentally, people need more high performance processors and more technology and that's what we do.

And so it is very much about you know, having a long term strategy, a very diversified set of markets, and ensuring that we're focus on execution every single day to deliver to our customers. So the biggest problem in the chip industry has continued to be supply, not matching up with demand, and you made a decision to outsource to t SMC, which has been widely credited for some

of you know, a MD's recent success. You know, when you look ahead, do you see being able to have enough supply to support all this growth, all of this demand that you're seeing. Well, I have to say, Emily, we've been working on you know, sort of ramping up supply for the last eighteen months. I think, you know, even pre pandemic. Uh. You know, we knew that our strategy meant that we would grow um, you know, very

substantially over the next few years. We've been working with our partners, UM, not just on the wafer side, of course, on the wafer side, but also um, you know, the back end side, substrate capacity, back in capacity, all the components that you need and UM, yes, we've been able to bring on a significant amount of capacity and that's what helped us grow you know so much. You're last year, UM as well as this first quarter, and you know for the rest of the year, we're forecast six annual growth.

So we are bringing on a lot of capacity and it is something that is very strategic for us, not just this year, but into and beyond. The data center has been a huge success story for you. How much of this demand is coming from big cloud providers like AWS and Microsoft versus increasing demand from other companies building out their own data centers. Yeah, so the data center has been our big strategic bet Emily over the last few years, and we've done extremely well with the largest

hyper scale ers. You know, ten of the largest hyper scalers UM are using a m D in very significant way, both on internal workloads as well as their external facing workloads. We're also making a lot of progress with enterprise customers and customers who are looking at building out a hybrid environment. So you know that you know, we grew UM. You know, we've basically doubled UM in the first quarter in the overall data center, but we doubled in each of cloud

and enterprise. And what you're seeing there is there's just a demand from more computing UM when you think about digital transformation, business transformation, UM, all of the AI that's out there. So there's continues to be very high demand in the data center. Now, there's been speculation about the PC market and whether it's hit a pandemic peak in tel CEO, pat Gaalsinger very bullish on this. Are you as bullish? Where do you think the PC market is

really headed? Sure? So, Emily, you know, in the context, um, you know, the PC market had its best year, um. You know, really last year. I mean it was a very strong year for PCs. As you know, there was a lot of need for you know, updated PCs and the updated infrastructure, as you know, we were in in the middle of the pandemic. When you look at this year, we are taking a little bit more conservative of view

of the PC market. You know, we we believe that will probably be down let's call it high single digits. But even with that, we're talking about a market that's gonna be over three hundred million units UM this year. So my view of the PC market it's about which segments that you're in, you know, sir. Only some of the low end and some of the more consumer facing UM areas of the PC market have taken a little bit of a soft spot here in the first half

of the year. UM. I will say though, if you think about commercial PCs, people are investing a lot in I t UM still because they want the productivity. If you look at high end premium UM PCs as well as gaming PCs. There's actually good demand for those. So I do the PC market as a very good market, but one where you know, we do have to watch

some of the volatility that's that that is in there. Okay, Now I have to ask about your reaction to the Supreme Court's leaked draft opinion, which shows that Row versus Wade could very well be overturned and soon. A MD has a good portion of its workforce in Texas, where you know, more aggressive anti abortion legislation has already been passed. You've got companies like Salesforce that have offered to pay for their employees to leave Texas if they want to.

How are you thinking about all of this as a business leader? Well, Emily, look, we're certainly watching the developments very closely. I don't want to get ahead of the actual ruling. I think they're there's still um, you know, there's still some clarity to be brought. But you know, our priorities always going to be first and foremost with our employees and ensuring the health and safety of our employees.

So we're certainly watching the situation very carefully, and we'll make sure that you know we're We're focused on our employees and d CEO Lisa Sue. Thank you as always for taking the time to join us. Thank you, good to see you again. All right. Coming up, he helped unionize the first Amazon warehouse in the United States. Christian Smalls joins us next from Washington, fresh off his meeting

with President Biden. He's next. This is Bloomerk Amazon that labor union president Christian Smalls test to find before members of Congress today about his efforts to unionize workers across Amazon. He, along with other union leaders, also just met at the White House with President Biden, Vice President Harris, and Labor Secretary Marty Walsh. He helped workers at an Amazon facility on Staten Island become the first in the country to unionize. However, Monday,

a nearby Amazon facility voted against unionitation. He joins us now live from Washington. Chris, great to have you back here on the show. You tweeted that you met the President earlier today and that he told you you got him into trouble. Tell me a little bit about that meeting and what you think he meant by that. Yeah, I believe when he came out a couple of weeks

ago and said Amazon would coming for you. I think he, uh he just overstepped it a little bit, and uh he was svised he's sitting here and but you know, it's great to see that. Uh he still recognizes that. You know, we had to have some regulations with the company as far as unionizing. So you also spoke with President Harry By, President Harris Labor Secretary Marty Walsh. Should they indicate if they're planning to get more actively involved in Yes, absolutely, you know, Uh, well, we had a

great conversation. Uh. They spoke to not just myself, but other leaders and organizers in other industries like Starbucks and are e I and uh uh what else, Uh, artistic industry as well. We had a librarian as there as well. I'm gonna give recognition to all of them. Um. And we definitely think that there's going to be some more

support coming from the political realm. Um. I know that they have been mentioned that they have um implemented some some things in the administration that they're willing to roll out over the next couple of months. And that's going to help us out on the ground. And I'm I'm excited to be a part of that conversation. Now you're testified before a Senate committee today, and I have a portion of that testimony. This is your response to a

question from Senator Lindsey Graham. That's the reason why I'm here to represent the workers who make these companies go. And I think that it's in your best interest to realize that it's not a a left or right thing. It's not a Democrat or a Republican thing. So workers things to workers issue, and we're the ones that are suffering. What's your sense of whether the senators were speaking to today understood that in a Congress that is often so

divided by partisanship. Yeah, I mean, well, I just had to reiterate that, you know, I wanted to make them understand that, you know, uh, our voices matter. You know, the corporations get the UM have the first say and everything. They get to control everything, whether it's the market, whether it's uh the laws, lobbying whoever, it's uh, even the government is some aspect. You know, we don't have a

say at the bottom as workers. UM. The only way we have a say in the voices when we collectively come together and when we collectively say we want the union, UM that that right should be given to us, and UM, that's what I want to make sure that that message was clear cut that the workers are the ones who generate the revenue for these corporations. And you know, I think he uh he got the message because he didn't

last long. He left halfway through. But you know, I understand, you know, this is uh something that has to be said, It has to be spoken about. Now. You won at one of the Staten Island warehouses. The union one Amazon though, is appealing that decision and they said they were disappointed with the outcome of the election there. They believe having a direct relationship with the company the company employees, having a direct relationship with the company is best for the employees.

You lost at a warehouse across the street. And I'm curious where you plan to do this next, given that clearly it's not necessarily a done deal. Yeah, we're we're prepared on our side, UM to go to the core hearing and hear out the evidence if uh there is some, and we will take our actions from there. UM. Definitely talking to our legal representation on our side to get the best advice as far as our first election. But

at the same time. You know, Amazon should recognize the fact that the Amazon workers at that facility voted for the union in favor of the union over five hundred workers, um, over five hundred ballots. Uh work where um the difference? And as far as the second election, you know, we uh, we definitely you know, overshotted a little bit. You know, we we took on a huge task. We've been campaigning

for quite a while, over a year. Um. We had a new facility, new workers, new organizers in that building, UM, and they just didn't enough time to convince enough of their co workers, which is understandable. So for us, we just have to reassess and get back to work and get back to organizing. So are we going to see you filing union positions petitions outside Staten Island soon? And if so, where quickly? Oh? Well, I can tell you

we're going nationwide. You know, every building in the country has contacted us already, and we want to continue with that plan to get everybody in the country set up. You're saying, every Amazon warehouse in the country has contacted you about the project of unionizing every Amazon facility in the country, um, and then some has contacted the Amazon LA reunion and we will have a conference that will address everybody nationwide. All Right, Christian Smallst, President of the

Amazon Labor Union, Fresh Office meeting with President Biden. Thank you Chris for trying to thank you. Welcome back to Blomberg Technology, Emily check in San Francisco. I want to get back to the market and volatility and starts spreading to crypto. To our at Ludlow, been taking a look there and what do you see, just another long list of superlatives for bitcoin. This was the single biggest intra

day drop since January. And again it's a two day story, right, a violent u turn because we saw bitcoin pushed towards forty dollars per token following that FED decision to raise rates by fifty basis points the commentary from FED chair j Pale, and then we just drop off and we're down back towards thirty six thousand dollars per token. In this higher rate environment, bitcoins traded in a very narrow range.

It's struggled to break out of that range. We've never really got back to the highs that we had at the start of the year, and we saw other old coins like Salana, for example, selling off during and ether as well during the session on Thursday. Earning season continues though, and there are some after hours movies that I want to look at. Lucid reaffirming it scary idents to build between twelve thousand and fourteen thousand vehicles this year, but

it's raising prices because supply chain issues are ongoing. The stock trading water in after our zero really interesting, big set off in zero down nine and a half percent, tepid outlook, and the worry here is that higher rates the Fed impacts mortgage rates and that could impact will cool off the housing market. And look Block End. We haven't spoken about Block in a while, right, formerly known as Square up ten percent, and after hours they're talking

about strength in their traditional payments processing business. And very quickly during the session Thursday, there were just two stocks on the NASA in the green, one of them Booking Holdings up three point three percent, earnings, bullish outlook, a summer of travels coming Emily. But just a few day days ago Expedia said exactly the same thing. They're down

six point seven percent on Thursday. M A lot of narrative of Expedia recession fears might hit them, A lot of love for booking, not really sure what's going on that? All right, Well I got someone who might have an opinion about that thing. You as ed said. Expedia shares tumbling since their earnings report earlier this week. This is rising inflation and a potential recession looms over the summer

travel season ahead. Joining me now, Peter Kurrent, Vice harre and CEO of the Expedia group to talk about that and more so. Look, Peter, you saw the chart. What's your reaction to that. Yeah, I mean we weren't expecting it. I think people are overreacting to, uh, some of the inflation worries, some of the other travel players and concerns. But we haven't seen any of any of the inflation worries affecting the booking so far going into you know, the summer season and in other and longer stays. So

we were a little surprised. We thought it was a good quarter and uh, you know, I think I think we expect a continued good travel season despite inflation concerns. So there's no question that people want to travel, aken, but at what point does inflation sap that demand? Yeah, I think what we saw through COVID that you know, on a macro basis, was a lot of savings in

most households. Uh and also and overspending consumer goods. And what we're starting to what we've expected to see and what we've been starting to see is a sort of a fall back to norms and probably an overspend on services, including travel and hospitality. So we've been expecting that, and

that seems to be playing out. Obviously long long term, who knows on inflation, but in the near term, inflation worries don't seem to be canceling people's ambition to travel, whether they might maybe rewrite down what they're hoping to do, you know, maybe not Paris but San Diego. You know, we might see some of that. But again, we expect people to travel regardless, and you know, we participate in all segments of travel, and if if people travel a

little more modestly, you know, we'll pick that up. So we we expected to be strong, at least for the foreseeable future. So you saw a steep rise in bookings compared to last year, but you're still not back to levels. I spoke to Airbnb CEO Brian Chansky just yesterday. Somehow he always comes on the day before you, so I have to get your reaction to it. Uh. You know, he talked about how they are now ahead of pre pandemic levels even in cities. Take a listen to what

he had to say. Well, it's already fully I mean, it's already above at this very moment with Airbnb. I can't say it's above for everyone. I don't know if hotels are back to planting levels, but we are next time, Peter, you're gonna have to come on twenty four hours before hiking. But either way, Look, what's you're reacting? You know, how do you explain some of the differences that we're seeing. Sure, well,

a couple of things. One is, you know, we saw very robust growth in our alternative commenta Inverbo during COVID, as did Airbnb in segments, and as cities have come back for them. Uh more. You know, cities aren't fully back, but cities have done better in the last quarter. Uh and so they're getting the benefit that Verbo for us doesn't really participate in urban markets. So we've both been strong throughout COVID, and I think the extra lift of

cities coming back put them into positive territory. But what Brian referred to, which is true. Hotels are not fully back across the globe. Not all geographies are back across the globe. So our mix of business, which you know, we have markets like in North America where we are fully back and more, and we have markets like a Pack that are still way under where they've been because they're still largely closed down. So it's a mix of business.

And that's what the story has been really throughout most of COVID, which is depending on where you were strong. If you were in a strong place and the business was there because of COVID, you did well. And as COVID unravels and we start to see cities come back, long haul international come back, you know, all the corridors open geographically, that business will be back. We are definitely

back and more than back in many markets. You've got some other news today unveiling your Expedia group Open World ECONMMER platform. What is this and how is it going to augment the broader business? Yeah, So, as you know, we've talked before about how we've been re platforming our technology to drive our own B two C business faster.

But what we realized in doing that was that if We built our platform to be externalizable, essentially in micro services, that we could provide the underpinnings for travel commerce for really any players. We have a very robust B two B business. We power lots of airlines selling rental cars or packages. We power rewards programs, we power a RPS travel program, many things, but these are big enterprise level deals.

What we're building now is an ability to sort of take our whole stack and turn it into micro services.

So if if a partner just wants to use our service capabilities or payment capabilities, or any parts of our e commerce stack or the whole thing, or sell cars or just activities or anything to augment their business, we can provide that capability so that we think it's going to dramatically expand the number of partners we can have in our B two B universe, which ultimately expands how much travel we can sell for our partners and how many travelers we can serve. All right, Peter Kerr, Vice

Sharon CEO of the Expedia Group. Always good to have your view of the future here on the show. Peter, Thank you. Thanks Emily. Coming up Bitcoin plunging the most in January, what's going on? There. We'll have all the details next, Mrs Bloomberg. Let's get to our crypto report now. With Bitcoin dropping the most into January, this is the market route deepens and its concerns about a recession. Bloom

with Katie Greifeld here for more. Katie, take it away. Well, Emily, first, I want to start big and just walk through what a horrible day in markets this was. If you look at the SMP five hundred, the biggest stock benchmark in the world, it was down three point six percent today. Somehow, that's only the worst day in a week. A lot of that pain came in tech stocks, so the NAZAC one hundred, that was its worst stay since September twenty. A lot of that selling came in the biotech sector.

I saw a great stat today that if you look at that sector, a fifth of it is worth less than the cash it holds. But a lot of that pain came in those speculative tech areas. You're looking at the Arc Innovation a t F down eight point nine percent. That's after it's it's biggest inflow in about a year earlier this week. That's got to hurt. But yeah, a lot of the action was in Bitcoin, the world's largest cryptocurrency,

down eight point four percent today. If you zoom out and look over, you know, a five a period, it's down eight point six per cent. So a lot of that pain just came today and again. But if you go back to the stock market, really really painful consumer discretionary, a lot of selling in that sector, a lot of selling in the e commerce names in particular. I'm thinking about Amazon, I'm thinking about eBay and Tesla of course also selling off in a big way with that text

sell off, So it wasn't just Bitcoin. To be clear, just how broad based was this sell off, it was pretty remarkable, Emily, really the space, the whole cryptocurrency ecosystem, it tends to move as one. But most of the losses came in Bitcoin, which I thought was interesting. If you compare that to ethereum, for example, that's the second largest cryptocurrency, it was only down six point four percent, only being a relative term there. So yeah, Bitcoin sort

of the underperformer among the big coins. But if you've broughten out and look at some of the old coins, I'm thinking about Avalanche, I'm thinking about so Lana. Those were down as much as fifteen percent at one point at the worst of it. And again this is all as we talk about the FED, the macro environment, liquidity coming out of that syst the system. What does that mean for cryptocurrencies? And it seems so far it's not

too good. And you know, let's talk a little bit about some of the companies that have made bitcoin crypto a part of their business in ways large and small. How did this impact them? Well, I mean, we gotta go straight to micro Strategy for that, right, I mean, in what was interesting about the earnings report obviously Bitcoin, they took a hit on their Bitcoin holdings. We know

that Bitcoin has had a rough couple of months. But was really interesting was on the earnings call you heard micro Strategy CFO line out that if Bitcoin falls to twenty one dollars per coin, micro Strategy would face a margin call at that point and probably have to sell some of their Bitcoin holdings. Of course, Bitcoin it's not close to their yet, it's still hovering around thirty six

thousand dollars a coin. But if this trend continues, and the trend has been lower, we could get there conceivably. All right, lots to watch ahead. Bloomberg's Katie Greifeld, thank you for that update. When I get back to the markets in a minute. But earlier I spoke with Uber CEO dar kas Rasha. He asked for his reaction to Uber shares taking a leg down even after releasing earnings

early to avoid comparisons to Lift, take a listen. I think the reaction to Lift was significantly more negative than than Uber. So maybe we're not in the same boat, but it definitely affected us, and I do think we're just in completely different places. You know. You see with Uber is the benefit of scale, the benefit of globalization, the benefit of diversification, and the benefit of discipline in these in these markets. You know, we are by far the number one player in the US have been for

some period of time. So when earners looked to come back to the marketplace and start earning in a flexible way, they're coming to Uber feet and that's a real advantage. When they come to Uber, they're busy all the time, not only driving people around, but also delivering or shopping, etcetera.

The opportunities to earn on the platform are greater than ever and in a reopening scenario, a lot of advantage comes to the number one player and the number two player in this case left maybe having a hard time. From a globalization standpoint, everyone knows that the reopening outside of the US has happened much faster. So we have been dealing with reopening dynamics bringing drivers back onto the platform. We made big investments last year. For some period of time,

we've been used to this. We built muscles to do it, and we're much more diversified so that we can you know, lead into the West Coast which is reopening fast, while you know the East Coast has lots of profitability. UK all over the world, we have lots of profits to pull from so that we can lean into reopenings. But we're not too dependent on one place. We're just a very different global player. And then from a different cecifically standpoint, we've had delivered be a very very big part of

our business. And as with reopening, delivery growth rates, while they're healthy, um, they're not growing quite as fast. So we're able to take careers who used to be drivers. A bunch of our courage used to be drivers. They're not driving people because of safety concerns. Now the COVID safety concerns are largely behind us. We can bring them back to drive, or we can hire, or we can bring owners onto the platform, both to deliver things and

to drive people. We just have a very fundamental business advantage over any monolone player out there. So you're saying when drivers come back, they're going to come back to Uber first. And you did say you don't plan to significantly increase incentive investments to get those drivers back. Lift is planning to increase those investments. And I talked to John zim Or, the president of Lift, about why take

a listen to what he had to say. I'm not concerned. Uh. And in fact, the message we're saying is that we see the demand coming back and therefore we want to invest in supply. So this is part of the reason their stock one off a cliff. Are you saying you won't have to increase incentives and that this won't lead to a subsidy war, because that's what we've seen in

the past. We have already invested in incentives. Remember Europe opened up last year, Latin America has has already opened, so we have been through this exercise before last year. Lift is a year behind us in some aspects as far as the reopening goes. So we're very very confident in terms of demand coming back. We're very confident in

terms of supply. Remember we have a structural advantage and that we can bring on couriers which are easier to bring on, we can upsell them into driving because the earnings opportunities now are very very significant. Uh. And as a result of this fundamental structural advantage, we're confident not only in top line growth, but also in margins. Remember we guided lift, you know, I think there are numbers one from seventy five million and even DA to fifty

and a guide at ten to twenty. During that same period, we've gone from eighty six million to a hundred sixty eight million to two hundred forty two seventy millions. So we've been headed in opposite directions for some period of time, and I think based on what we heard from them, we're headed up. We're headed into pre cash fuow territory. You did report a massive loss five point nine billion dollars in part tied to your other investments, Aurora D.

D Grab Are you reassessing your strategy at all? Here? We're not reassessing your strategy. You know, those investments were part of mergers and acquisitions, different activities, and I think we made the right moves, as you can see based on the operating results that were displaying, which are absolutely industry leading. We're going to take a careful look at those equity UH stakes. We have plenty of liquidity. We're moving towards free casual profitability, so we will look to

monetize those stakes in return capital. When we're two the one way the other tour shareholders over a period of time. But we're caught in the same down draft that everybody else is caught in right now, uber CEO dar Causa shot he there. You can catch that full interview at Bloomberg dot com. I want to get back to today's market meltdown and bring in Robert Kentwell Upholdings portfolio manager. Robert just how many companies are gonna get caught in

this down draft and how long does it last? Family. It's been pretty ugly, but we are almost at the end of earning season here, and your your team has done a great job of reporting a lot of the

bad numbers out there. Um e Commerce has had its first negative quarter year every year and just about as far back as most folks can remember, even in the first half of commerce was still up over the last year, and that has a lot of repercussions to other industries, software, rides, sharing, advertising, Well, with these so awful to be frank, we think there's something big going on here, and we think investors are reevaluating whether or not these are actually technology companies with

limitless scale and low hot pretty costs. Well, you have Netflix is now being valued like a cable station. Other investors are looking at Facebook's meta's capital intensity and saying is this does their future look more like a T and T S than it does Google? And you've seen multiples re rate faster than we've seen in a really long time across these assets because investors not, in our opinion,

they've likely moved too far in that direction. But you know, we've got to do our jobs and pass through it and find the good deals here. Meantime, you've had a flood of retail investors coming into this market over the last couple of years thanks to companies like robin Hood. What happens to them, well, a lot of them might not exist. You saw something very similar in the in

the in the late nineties, Internet boom. If you remember the explosion of the trades and the merriage trades, and a lot of those businesses ultimately had to merge to stay alive. Someone out of business, uh, someone private. And you know, this Twitter deal very well could be the first big transaction that we're seeing, but far from the last.

So we expect a lot of consolidation. We expect some shutdowns. Uh. We we expect the I p O window to remain pretty darn't shut So we don't think over the next twelve months, you're you're more likely to see a shrink in the total number of companies available for investment, uh, than you are to see new companies available for investment. Where do you expect to see consolidation? Who do you expect to see shut down? Well, the worst the business model,

the more likely to consolidation. So you could you've had a lot of the right sharing books on here in the last twenty four hours. That space is just desperate for, you know, continued consolidation. Just Eat Takeaway and door Dash have been big consolidators. Uber's tried to be now they're now they're investing. So we think that space is just going to continually have to do deals amongst its until they get to a small enough under a number of

players to be profitable. Um, what should buy lift? Ah? Have you ever seen two businesses more in need of a merger? But like the right sharing space is really challenging because they're they're competing for the same thing ultimately, which is they thought these You know, I was in San Francisco with you for the last ten years while these businesses were quickly being built up, and they were parading themselves as these as these complicated, fast growing software platforms,

and they were treating humans like commodities. And if we've learned anything over the past two years here, humans are actually a very precious input cost into the function of these businesses, and those business models are more dependent on humans. And it's just about any business you've seen come out

of Silicon Value in the last decade. And that is a really competitive place to be and it's a really hard place for investors to sit around and be patient for them to find ways of scaling those business models. So how long does this drag out? How long are we in the red here? Well? Amazon told us that starting on May fifteen, growth rates relative to last year would start to look better and better, um, and we

tend to believe them. If you remember last year, the first half was incredibly strong, the fastest growth you've seen in the US and last fifty years. The second half totally different story, one of the worst holiday seasons that the US has experienced in twenty years. So the comps relative to last year are going to keep improving. That likely investors tend to have existential crisis when growth rates are slowing down and management teams are surprised at how

poorly their businesses are performing. But it's gonna get a lot easier as the year goes on. And it's very possible that as you see some of these growth rates start to stabilize glat into last year's numbers, you might see some of these multiples come back to more middling ranges. Well, that sounds like somewhat of a silver lining. Upholdings Portfolio Manager Robert Knt, Well, thanks for giving it to us straight of prey shade it. That does it for this

edition of Bloomberg Technology. Were going to continue to follow the sell off right here on the show and on Bloomberg Television over the next twenty four hours. And guess who's coming on tomorrow Doortos CEO Tony Shoe will ask him if consolidation is in the future. And don't forget to check out our podcast anywhere you get your podcasts.