Meta's Earnings and Musk's Twitter

Musk swooping in and his version of free speech? Goldman joins us this hour and we'll talk to the co founder and CEO of twenty three and me and wi Jetski about their new play in telehealth, progress on drug discovery, and her vision for building a healthcare company unlike anything we've seen before. We will get to all of that in a moment, but first, big tech earnings continue Meta

and qual calm out. I want to stay with Meta and bring in Angelo Zeno of c f r A. So this after Facebook daily users declining for the first time in a decade last quarter, that number growing this quarter. Angelo, is this a blip or is this the long term thing. Yeah, listen, I think this is um really kind of meta and just it seems like three months ago just kind of really setting the bar extremely low here, UM, and you know, they were able to kind of come through with flying

colors in many respects. I mean, despite the fact that you kind of had the rush of Ukraine War ongoing UM soultness out in Europe. UM, this was a company that essentially grew six percent on the daily active users side of things year of a year. Overall, pretty good numbers, i'd say on night front, growing across every region outside of Europe, and you kind of have to give them a pass out in Europe. So UM, I think, you know,

I don't necessarily think this is a blip. I think this is a company that's now going to continue to see growth on the d AU side, but there will probably be kind of very modest in nature. So UM what whether or not we continue to see six percent, who knows, maybe it will be closer to to low midst low single digit growth, But nonetheless, I think it alleviates the big fear out there, which was the fact that we could have seen potentially negative d AU type

numbers in the coming quarters. Now, Mark Zuckerberg in the earnings released saying, we made progress this quarter across a number of key company priorities, and we remain confident in the long term opportunities and growth that are product roadmap will unlock. Another significant point here is that they reduced their expenses forecast. A lot of analysts and investors have been pretty skeptical about the amount of money uh that Facebook and Meta are pouring into their virtual reality dreams.

How big a deal is this? So they essentially left the capex number unchanged, you sed, right, But in terms to your point, the compex number definitely cut a big here. I think that's definitely a positive sign. And one of our biggest fears was, um, the fact that they were just spending way too much on that initiative. It was essentially gonna squeeze the margins um for the foreseeable future because of the slowing growth on the ad side of things.

So listen, Ultimately, I think it's a good thing that they're tempering some of those uh expense growth numbers. UM. Nonetheless, it's going to continue away. They are spending significantly, They

will need to continue to spend significantly. I also think it's important to note here, I mean, listen, they do have they continue to have a problem in this sense that UM they're catering, in our view to essentially the wrong UM ecosystem, in the sense that they have to get younger, and they have to get younger quick and that's the whole point of the whole metaverse, right, and uh that as a result, you need to spend aggressively

on that side of things. They've got an opportunity here because it looks like companies like in Apple and Sony are kind of pushing out some of their initiatives in the metaver into three. So UM I wouldn't necessarily take the fund fully off the gas here from them, but nonetheless they are spending aggressively, and I think that is the right roof Still, I wonder why investors are focusing so much on the good news here and not the

bad revenue. Did miss estimates? Their guidance on revenue is also a little light, and this in the context of not great add numbers from snap from YouTube. You know, what are we gonna be seeing here over the longer term. I think it's all expectations, to be honest with you, I mean, this is a company that was trading less than thirteen times our three estimate, so the bar again

was said extremely low. We're talking depressed of evaluation, essentially training at evaluation where you know many people have left the company for dead. So um. The reason I think you've kind of seen this change of sentiment here after hours is because it looks like, at least for the time being, that type of scenario has been left off the table, despite the fact that you know the revenue guy the UM for Q two specifically is below when

where the street had expected expected. I think there was just a lot more hate kind of going on going into this quarter. Well, dad is a strong word for a company with three billion users, even if ad growth MRS estimates. Angelosino c f R A thank you so much. As we dig deeper into Elon musk billion dollar Twitter takeover, we are learning more about what Musk can and can't do. He can't tweet anything that quote disparages the company or any of its representatives, a rule he seems to have

already violated. There's also a one billion dollar breakup fee if the deal doesn't go through. For more on what it all means, we are joined by Bloomberg's Max Chafkin. So Max Musk has already tweeted some disparaging remarks about vidigade twitters chief legal counsel. This in response to an article about her crying over the deal in a meeting political article. How likely is it that this kind of behavior is actually going to get Musk into regulatory trouble.

I think it's pretty unlikely, and and I think that has to do with kind of this. This is going

to come down to your definition of disparaging. And first of all, whether Twitter is going to argue that it's disparaging, I think, um, you know, Musk can say, hey, I'm just commenting on this, you know, public debate, and yeah, there are a bunch of trolls coming in and and and coming after this Twitter exact, you know, in in harassing and uncomfortable threatening perhaps ways, but that you know, he Musk didn't do that, And I think that that

would be his argument. And I have a feeling that that's going to hold if not you know, water in the public arena, public opinion, it will hold legal and regulatory water. So I don't think there's likely to be any kind of uh, any consequences in terms of the legal risk. I do think this does raise questions about, you know, what kind of company is Elon Musk gonna run? What is it when you're going after your own executive as a company that these people are going to work

for you. Uh, you know they're gonna be responsible to you. It just doesn't seem like, um, the smartest thing to do, right And of course there's a contingent of people that are not excited about this, and a contingent of people on Twitter that are very excited about this. I mean, you know, Musk Tolemo is playing with fire. I mean, can we expect anything but more of these kinds of tweets until this deal closes, which you know it could

be a few months. We've seen Musk, you know, basically fight with the security the SEC for the last four years or so, and he's not backing down. You know, just a couple of days ago he was he was, you know, sort of reiterating his lack of respect for the San Francisco office of the SEC. So, you know, this is somebody who there there are the rules, and then then then there's what he's going to do. And obviously he's become very successful pushing the envelope. I think

he's going to continue to do that. They clearly with this agreement tried to create some carve out so he wouldn't like, immediately violate the agreement. They said, you know, Elon can tweet about the deal. You know we won't, but Elon can um. But of course he's he's going to be himself and he's going to find ways to push the boundaries. All right, Well, we're gonna be following it all tweet by tweet. Max Chafkin, thank you. I want to continue this conversation with a man who knows

a lot about Twitter and its history. He was part of the founding team at Twitter and a board member from two thousand seven to two thousand ten. Jason Goldman joining me now in an exclusive interview. Jason, good to have you here. I know this arouses a lot of emotions. Now that you've had a couple of days to digest this,

how are you feeling about Elon Musk buying Twitter. I mean, it's just a disappointment because I think the company really could use great stewardship at this point, and what he's revealing is just how un serious a person he is about both his ideas for the product and the philosophy that underpins it. So I think some would say it's a disappointment that Twitter hasn't grown faster, racked up more users,

become more influential. How would you respond to that? I mean, like, you know, the business performance of the company has always sort of dragged behind the cultural importance of the company. We always have known that that has a much bigger footprint with journalists and with media celebrities, musicians, that it has this huge cultural footprint, and I think that's what made it an attractive opportunity for Elon. So what do

you think is missing from the conversation? We've seen pundits talking about this now for three weeks, we've heard from Ellen himself a lot of debates. But you know, what do you think is missing? Given your vantage point and history with this company going back fifteen years? So, I mean, I think the biggest problem is the free speech framing that he continues to use to talk about what he

wants to do with the product. It just reveals a very naive, un serious approach to the content moderation issues he will face. Uh, And I say it's unserious because his own standard of we should just allow for anything that's not disallowed by law is self defeating. Because he's talked about wanting to remove anonymous content, he's at about

wanting to remove bots. Both of those things are examples of content that is not you know that that are not There's no First Amendment carve out for for anonymity. You can definitely express yourself anonymously. Uh. And so it just shows that he hasn't really kind of put the dots together on what what needs to what needs to happen in this space. So let's talk about that a little bit more, because we had a very lively debate here on the show yesterday with David Sachs and Tam

O'Brien are Bloomberg opinion columnists. I want you to take a quick listen to that exchange. The platform is absolutely rife with bots, and I think Ellen has already promised he's gonna crack down on bots, and he has expertise at his disposal, the premier AI engineers who he can deploy to solve that problem. I actually think that speech free speech to it's fake not if it's fake speech. So the first hold on a second, then let me finish.

When you put bots on Twitter and pretend to be someone you're not, when you pretend, when you basically violate the authenticity requirement, you are basically trading a kind of fraud that is not free speech, that's fake speech. Is perfectly fair game under any kind of free speech policy to take down those kinds of bots, And I fully expect that Ellen will be far more effective at doing that than the current management of Twitter, because they've been

unable to do that. Jason, what's your reaction to that. I mean, that's a standard that is in no way supported by free speech, Uh, legislation, that's no way supported by a constitutional standard of what free speeches or it's just a notion that he's exposing that anonymous speech somehow doesn't get free speech protections. There's no case law that establishes that's true. He's just purporting that to be true. Uh. And moreover, if that's a standard, what other things would

he look to remove? Are we going to remove? For example? Um, are we going to Are we going to allow back on the platform people who harass parents of children who are murdered at Sandy Hook? Because even if they if even if they use their real names. Like this just isn't a serious standard that's being articulated, and he hasn't thought through and David hasn't thought through all of the implications that would come from adopting it. So by free speech,

Ellen says, he means that which matches the law. I am against censorship that goes far beyond the law. What are your biggest fears about Elon Musk taking over Twitter? So the type of content that Twitter has cleaned up in the last you know, six years, seven years include

things that were in response to real world occurrences. You know, you go back to and you look at the rife of content that was being used by ultra extremists uh in including isis to recruit people off of Twitter, and so there was beheading videos and just content in general that was meant to appeal to an audience to recruit people to ultra vans. Are we going to allow that back on? Those acts may be illegal, but the content about it is not illegal. There's no there's no First Amendment.

There's no First Amendment rule that says that you cannot use uh you speech in that way. So there's no case law that would support Elon's contention that that content has to be removed because of legal reason. So I just don't think that standard holds water when you look at the type of things that he is going to want to still not be on the platform now, Jack Dorsey,

and obviously I know you work closely with Jack. In the earliest days, he thanked Ellen for getting Twitter out of a quote impossible situation, to which you responded with a meme of a guy in a hotdog suit, saying it was an impossible situation, says founder in control of company for the last decade. What are you trying to say there? I mean Jack has been either the executive chairman with control of the company or the CEO since

October of two thousand ten. He's had the most direct role in shaping the course of the company for the past twelve years. When he wrote his resignation letter in just of November of last year, he said, I worked hard to ensure the company can break away from its founding and its founders. And so to now say, you know to now be only less than five months from that and say solving for the problem of it being a company. Ellen is the senor or solution I trust

what what happened in the last five months. I thought it had been established in this trajectory, it was able to break away from the founding and its founders, and now Elon Musk, someone who's never been involved before except for being a troll on the platform, is the singular solution to the trajectory of the company. That seems curious. Do you think Jack, I mean, do you do you do you blame Jack for anything here? You know, is there something you think you should be answering too well?

He said, I mean, you know, the biggest thing, the biggest thing, just concretely today is that Ellen is using the platform to troll the employees of the company that Jack's led, uh, you know for the past twelve years. Uh. And that's you know, that's vision, and that's other people

in the Trust and Safety organization. And and you can absolutely critique decisions, content moderation, decisions that have been made by the company, but if you absolutely should not allow the perspective owner of the company to troll your employees um for the decisions that they made. And that's really what's going on here and puts the lie to the

free speech argument. Ellen's not interested in debating this question of you know, what content should be allowed or not, he is simply turning his army of fans on these employees and allowing them to be targets of racist abuse and threats. That's not the Lincoln Douglas debates, that's not Cicero in the forum, that's not the marketplace of ideas. That's just using the product as an active troll to

harass and target employees. And Jack and the board absolutely should have the backs of their employees in that case. So that's just a concrete example of something happening right now. Twitter was often, even in its earliest days, overshadowed by

this sort of Game of Thrones drama. I think even you would agree with that, And and I wonder do you think do you there has been speculation that Jack perhaps had something to do with this, and before maybe even Elon Musk started buying shares, what do you think of that theory? I mean, you know, so there's I think there's the problem with most conspiracies is that they're

they're too clever for anyone to keep secret. Uh. And in the case of you know, Jack or so anyone else on the board actually working with Ellen or kind of originate this deal that obviously would trip a number of legal red lines that I don't think folks would be very comfortable doing, and would then for even just increase the chances that it would leak. I do think it's I do think it's possible, slash likely. And I take Jack at his word when he said, oh, this

Elon's solution looks like the only solution available. That he was supportive of Elan coming in and owning the company, probably because he felt like, you know, he no longer was going to be involved, so this was another way, another way out. I would just point out that's in direct distinction and in contradiction to what he said five months ago when he said the company was in great hands and he had no concerns about stepping away. What

have you heard from current Twitter employees? What's it like working at Twitter right now? You know, I don't know. I don't want to speak for for current employees. I will say for former employees, it's been and you know, those of us who are there from the you know,

sort of early times. Uh, it's it's just depressing. It's it's sad to see this thing that was be be looked after by someone who hasn't really thought through the issues, hasn't really kind of taken care uh to to do the research on on what on what product is they need to build. He's, you know, in addition to the free speech questions, he's also just not articulating a coherent product vision of what he wants to do with the

product or why it was interested in buying it. And so that's just it's a disappointing end uh endpoint to this part of the Twitter journey. Well, we will see if that comes with time. Jason Goldman, part of the founding team at Twitter, Thank you for bringing your voice to this conversation. Appreciated. Robin Hood is in need of its own Robin Hood style rescue. Less than a year after going public, the online brokerage is racked up more than two billion dollars of losses and it's now dismissing

nine percent of its workforce. Thirty people work there now. Robin had said that after a period of hyper growth in early it ended up hiring too many people, leading to duplicate rules and quote more layers and complexity than optimal. SpaceX has launched four astronauts to the International Space Station. This is the first NASA crew making up of an equal number of men and women, including the first black woman to live and work in space for a long

term mission, Jessica Watkins. They'll arrive at the space station sixteen hours after launch. And coming up, we are joined by and which it Ski the co founder and CEO of twenty three and Me and their big bet on telehealth plus the latest on metas results in the stock spiking after plunging last time around. That is next. This is Bloomberg. Welcome back to Bloomberg Technology and Emily Chinese, San Francisco. Well, the pandemic continues to change how we

view certain businesses in the world of healthcare. Definitely one of them. Twenty three, the genetic testing company, is diving into tele metas and to help customers better understand their genetic reports. Joining me now is and Whichetsky is the CEO and co founder of twenty three and Me and

always good to have you here on the show. So you're taking here first steps towards giving twenty three customers access to telehealth to help them understand, um, what all of this data you're giving back to them actually means. How exactly does it work well. I think one of the most interesting things I've learned of the last sixteen years is that everyone sees a world where you're going to get your genetic information and it's going to be

part of your everyday primary care experience. But the reality is most physicians are not trained. UM it's not accessible, it's not part of the medical system. And we've learned we have over twelve million customers. We've learned over time that our customers are getting this information and they take it to their primary care physicians, and they largely don't

know what to do with that information. And so there's this opportunity for twenty three and me to really solve that problem and actually become that consult to other primary care physicians or other specialists by really providing and delivering genomic medicine and how our customers and how everyone else out there can learn about their DNA and say I'm going to take proactive preventative steps and have whether that changes some of the guidelines like um, getting a colonoscopy,

or whether or not that's going to actually influence how they're wearing sunglasses, or how they are eating and exercising, how significant will telehealth be to twenty three and these future business like, do you see this being a significant driver of the vision and revenue. I think that preventative care is absolutely something people do every day. Your health is a sum of what your actions are every single day.

And I think that people get genetic information, You get any kind of health information, and you have to spread it out throughout your life. You have to continuously implement it. And so what I find and part of the twenty three plus product that we that we launched about roughly over a year ago was about additional content, and we've always said the next step for us is actually saying

there's additional services that are part of that. Is that going to be telemedicine, Is it going to be the ability to chat with the physician, Is it going to be access to pharmacy, um and integration with you know, your genetic data with pharmacy, or is it potentially going to be access to blood tests that are relevant because of your genetic information. So I think that this infrastructure is a really core part of the future experience where customers are going to have twenty three and me part

of their entire lifetime of healthcare. Now you have really some eye opening research about COVID nineteen. You found that the loss of the sense of taste and smell was tied to genes that if you had type of blood, for example, you were less likely to test positive. Are you still looking into COVID nineteen? Are we're going to see twenty three and me make more COVID related discoveries.

We are, and it's something I have been pushing more and more or and just personally, I hear of all kinds of stories on long COVID, So a lot of our emphasis right now has been on long COVID. We have over one and a half million people who have taken our COVID survey. Um you know, over sixteen thousand of them have had were hospitalized and had serious cases. UM large numbers of people who have long COVID. So we're actively continuing to look at that data and will

continue to publish on it. It's something that's obviously it's very top of mind, and I think understanding the genetics behind why we all have such variable responses is going to be really important for us in managing and going forward. What's the progress on your drug discovery business and the likelihood that twenty three and ME will help us, you know, get closer to a care for cancer. Well, I think people don't always realize drug discovery is incredibly hard. Most

you know, most programs fail. There's over ninety failure in in drug discovery. And so one of the only things that has ever been shown to increase the likelihood of success is starting with a genetic a human genetic foundation. So if you have a human Janet foundation to your drug discovery program, you're more than twice as likely to

be successful at actually getting onto the market. So what's so unusual about twenty three and me is that we have this incredible, you know, community of data, set of information where we can make all kinds of discoveries on all different disease areas. And what the therapeutics team is They go through all of this data, they sort of whittle it down into where are we most likely to

be successful, where is there an unmet need? And then we're actually working on that with a you know, in partnership with GSK on getting these programs actually out to everybody. So is the hole that twenty three is gonna be a big farma company someday? What's a fair comparison. I love this, Emily, like one of the biggest challenges people have a hard time putting us in a box because we're not telemedicine, We're not just a diagnostics and we're

not just a pharma like. We have this comprehensive holistic system where we say twenty three and Me is about engaging individuals in their health and at the same time, those individuals always have the ability to opt into research. Over eight percent of our customers opt into research, and

with that, we're making discoveries. And those discoveries either can go back to our customers, and that's where Lemonade and the acquisition of our of our health platform and the ability to engage customers, they will benefit in that way, or some of those insights are going to go to our therapeutic side, and we are going to continue to make discoveries that hopefully one day are going to go back to our customers, and we're going to have potentially a new way of even approaching how we get those

therapeutics out to our customers. Now. Of course, twenty three and Me recently went public vs. Back, and I'm curious what the transition from being a private company to be a public company has been like for you you know, we've seen tech stocks in general and equities in general really take a leg down in this macro environment, you know, and you know twenty three and Me has as well. Um, you know, what's your reaction to that and what's been

your experience dealing with public get investors? I love, you know, I'm really happy that we we went through the process. We are public. Now we have the ability to you know, to do more acquisitions, the ability to actually access markets. Like all of this was you know, it was the right time and the right place for us to go public. And what I've been focused on now is really just

the long term mission of the company. The long term vision of this company is that every single person in the world is going to have genetics that's part of their care. Like it's almost one of those things that every every research or every healthcare professional UM talks about. It's inevitable and it's obvious genetics is going to become a critical part of healthcare in the future. And so twenty three and Me is absolutely that leading platform that

is going to drive that and make that happen. So I have not been focused on the day to day of you know, of the stock market. Markets are obviously quite dynamic right now, but what I'm focused on is that long term future where every single person is going to have genetics as a critical part of their care and which it's of twenty three and me thank you as Allas, thank you am good to see you, good

to see you too. It is time now for our crypto report, and as the f t X Salt conference is underway in the Bahamas, let's take a moment to look at the world of Defy. Our crypto contributor Shinali Bossik here for more. Hinali, what caught your eye? I want to talk to you Emily about Defy because DeFi here is supposed to be the big bank killer, the big way for pure to pure transactions to happen, things

to happen outside of the normal financial system. It was also the big trade that Mike Novograt's at the end of last year said would be the big trade for this year. But it has been down quite a bit. If you look at a Defy index we have between Bloomberg and Galaxy, it's almost seventy down on the year now. It tracks Bitcoin to some degree, although the moves are

much more volatile. So bitcoin is a two percent for example, you also have a rise and other DEFY assets unit swap is up more than one percent, is up more than six percent over the last twenty four hours. So it's time now, I think, to dive a little deeper into how Defy is changing among the asset class. Of course, there are a lot of projects to look into. Emily all right, and Allie stay with us. We're gonna move into zero x labs and Defy exchange infrastructure provider just

raised seventy million dollars led by Graylock. Here to talk about that and more. Greylock Partners. Sarah Gual joining his live from the f t X Salt Crypto conference in the Bahamas. Sarah, First of all, what's the mood and seen in the Bahamas in the crypto community. It's great to be here. There's a lot of innovation happening, and I think what's been really interesting is seeing the confluence of crypto entrepreneurs, investors, regulators, traditional finance um. So you

just see the industry maturing. So talk to us about zero x. How do you see this company challenging incumbents as big as coin base, So as you mentioned, um UH, defy is growing and innovation is happening on decentralized exchanges that are peer to peer. Right. UM in the volume of the past year grew much faster on these decentralized

exchanges than on centralized exchanges. But then these decentralized UM transactions, they bring their challenges and just like Web two needed open protocol standards to succeed like HTTP, so does Web three. And zero x is that open most trusted protocol for the exchange of tokenized value. It's a public good and zerox Labs builds commercial products on top of that public good.

Now where you know, it's funny. We used to hate talking about regulation and finance because it was boring, but at the same time, now it is central to the emergence of this ecosystem. Big exchanges are struggling with this. How do DEFY exchanges think about the emerging regulation ahead? Yeah, I can't speak to all of them, UM, but what I would say, my my personal opinion is that we're going to get to a point where these rails that support innovation and UM more liquid twenty four hour day

exchange UM for lower cost for end users and more accessibility. UM. They will be combined with appropriate consumer protections. And what I'd love to see is UM the US federal government take a stance as we have historically, UH like a leadership stance around financial innovation, UH, something that has made our economy UM a major player in the past, with for example, the rise of electronic trading and work the

CFTC has done in the past. You know, what about self moderating a little bit here, because you know, while DEFY has its promise, there's a lot of worry about rug poles. There's a lot of worry about things that could go wrong for consumers, and we've seen it a lot over the last year or so. So if you're a consumer thinking about DEFY, you know, how do you look for the right places to go? Yeah, I would say, UM, you're absolutely right. I think that there's two sides of

this coin or I guess three. Right. You have regulation, then you have platforms that can design products, even decentralized products that are um uh safer and abuse aware for consumers. And then there's just a huge component of consumer education around this new realm of finance. Now. Sam Bagman Freed of f t X had a very spirited take on what's driving crypto investments right now? He said, it's fomo. I'm curious what your take is on that is the

fear of missing out? Really, Um, what's driving all this competition for deals? Uh? I think that. Um, you know, we at Graylock like to believe and I have a ton of respect for Sam. We're investors in f t X, but Graylock we are trying to make first principles decisions independently about the most important technology platforms of the future, right and so we operate in a competitive market, and we believe that many of our competitors are smart people,

so we pay attention to what they're doing. But we would never invest simply because somebody else thought it was a good idea. Well, it seems like metaverse, the metaverse is the next buzzword and could be the next driver of fomo. And I'm curious, given of course Graylocks, you know early investments in Facebook, how you're thinking about that and especially the crossover of the metaverse into the world of crypto defy and all of these big themes we're

talking about here. Yeah, we probably think about it from a slightly broader perspective. We made two investments recently UM in Magic Eden, which is the fastest growing n f T marketplace, around this idea that digital assets UM on Salona, but on any chain are going to become much more important and a part of people's lives, and they're going to have digital environments. UM. We also made an investment in a company called Portals, which is one of the

leading metaverse projects. But in both of these cases, we're really focused on understanding, you know, what the user demand is and if that is community creation or a virtual place for social interaction. We're really oriented around that versus speculation. But we definitely think that there's going to be more and more you know, digital interpersonal interaction. Sarah, You've been at Goldman Sachs before gray Lock. You know how this works.

What's going to happen in terms of the convergence of traditional finance and defy, There's got to be some space where the two combine. Yeah. I think that this is going to be a massive boon to the ecosystem as more and more traditional finance players move into the crypto ecosystem UM, because I think the greatest promise of crypto is actually like accessible trust less markets. UM that are

more efficient. And the big institutional players, be they hedge funds or banks or market makers, they provide UM, they provide liquidity and efficiency in markets UH and help them operate better. And so I think that a lot of traditional finance organizations have been waiting for increasing regulatory clarity. But I'm really encouraged that you see UH firms like Goldman Sacks or Citadel say explicitly we're making moves into

crypto and we feel more comfortable about the risks. I think that will make the entire ecosystem more liquid and more mature. Sarah, you're in the Bahamas. A lot of people are there, about two thousand people are there right now.

What's your biggest takeaway? I think it's really what you said, which is where at a point of you know, the UM maturity in the ecosystem, where the most important thing is actually figuring out how to enable institutions and the next wave of consumers to enter the ecosystem and use the rails of crypto UM in ways that are UM you know, safe and legal UH. And I'm really encouraged that there's so much just us of that at the FTX conference. Alright, great lack Partners Saragua along with Bloomberg

Shinali Bossik, Thank you both. Coming up more on Meta's earnings results. Did the social media giant just turn things around or so not going to be so easy? More on that next This is Gloomberg. I think that the cycle here between investment and um meaningful enough for revenue growth to be near or very profitable. It's gonna be it canna be long. I think it's gonna be longer for reality Labs than for a lot of the traditional software that we've built Facebook, Mark Zuckerberg, or I should

say Meta. I want to get back to Meta's results with the company adding more users than projected in the first quarter. I want to see, uh, now if the company is really turning itself around for the long term, and bring in Jasmine Edinburgh of in Eider Intelligence. So look Jasmine last quarter, uh first drop in d A used for the first time in a decade. This quarter

they grow. What's your takeaway? Well, it's certainly a good sign, especially given what happened last quarter, but the reality is that there are still some very real challenges ahead for Meta, particularly when it comes to its AD business. There's the changes in iOS and combine that with you know, brand safety concerns surrounding the war in Ukraine, as well as broader brand safety concerns in general on Facebook and Instagram, and the rise of TikTok. It's really creating this perfect

storm that is heading straight for Meta's ad revenues. So do you think this is you know, in terms of the user growth, is this a blip? Well, I was just listening in on the earnings call, and what was clear is that there is a huge focus right now for Meta on video and a lot of that has to do with the fact that social activity is really shifting towards video, and that's been accelerated by two talk.

Of course, Facebook and Instagram both have a TikTok competitor in reels, and that was really Zuckerberg's focus on the top of the call um, and they're trying to find ways to be able to use video to continue to draw an engagement and users. Well, in Facebook has tried video before. I mean, this isn't the first time they've experimented with video products. Do you think they can get this right? It's a great question, and it's something that

we can only tell over time. I think you know, reels has taken off much better on Instagram that it has on Facebook, and a lot of that has to do with the different user base that Instagram and Facebook has. Instagram's user base is also aging now, but it still tends to be younger than Facebook's is, and so that's one reason why video seems to be a little bit

more successful there. So let's talk about what you think they signifies about long term ad revenue growth, because you know, obviously we see Facebook struggling, we saw a Snap struggle and YouTube revenue came in yesterday at revenue came in light You know, what's your takeaway as to how that's going to evolve through the rest of the are given there's no sign the macro environment is changing. There's still

a war in Ukraine, We're still facing inflation. Yeah. Look, there's always going to be different types of macro headwinds. And I think you know, one of the biggest things that a lot of these companies need to focus on as an innovation. You know, TikTok really entered the scene

and has taken it by storm. We're seeing a bring in users and add revenues, and of course, the biggest threat to long term growth for any of these social platforms, whether it's Facebook, Instagram, or Snapchat, is a decline or

slow down in its user growth. So by focusing on ways that they can bring in new users and continue to keep that engagement on these platforms, that's the way that they're going to be able to continue attracting advertisers there, because at the end of the day, advertisers go where their consumers or customers are. So what are you watching for when it comes to meta this quarter? Well, I'll be watching to see a couple of things. I mean,

one is to see how reals develops. Again, it was a huge point um that Zuckerberg was making in the beginning of the earnings call. There's a lot of focus on the metaverse right now, but it's it's an incredibly buzzy term. But I really truly believed that the immediate competition again for social media right now is in video, and whoever is able to rise to the top in um in video is going to be the leader in this space. All right, Jasmine Emberg Insider Intelligence, thank you

so much for joining us. Meantime, some of the biggest stars on Twitch might start to see some revenue cuts. People familiar with the matter say the live streaming website is pondering changes to how it pays top talent by offering incentives for streamers to run more ads, for instance, or reduce the proportion of subscription fees doled out to the biggest stars. This move, intended to boost profits, could alienate some of the biggest names. That is the risk

and that does it for this edition of Bloomberg Technology. Tomorrow, Christiano Amant, CEO of Qualcom, will be joining me talking about their earnings report quite strong, and we're also watching results from Apple, Twitter, and Amazon Big Day. Don't forget to check out our podcast. You can find it everywhere you get your podcasts. I'm Emily Changing in San Francisco. This is Bloomberg