Twitter Earnings and Tech Hiring Freezes

What does it signal about the future of the economy and what does Silicon Valley look like when the dust has settled. Polit School and finding the soulmate comes with a cost, and inflation isn't helping. Singles are getting creative as the dating economy suffers from picker shock. We'll dig into trends in dating. All that in a moment, But first Snap then Twitter dragging tech markets down, disappointing results

only fueling fears of a recession. I want to zoom out and talk about what all these tech results so far have told us about the state of the economy. For that, I want to bring in wed wish Managing director Dan Eyes and economy CEO David Kirkpatrick. Look, let's let's let's start with Twitter because we saw you know, miss miss on the top line, uh users inline? Dan, is Twitter just treading water right now? I think Twitter

is basically training right now. Is odds are almost an arbitrage on what's gonna happen in Delaware in terms of eating with the must deal in terms of how that plays out for me the a settlement or he ultimately needs to buy Twitter based on Delaware court. But I will tell you those metrics firmer than fear, and I think it should, especially when you compare it as Ed talked about the Snare app just absolute disaster, blaming everything

for the wind. I mean, Twitter holding it a bit better than expected, but it is training right now on what's happening in terms of October and the Delaware court case. And remember it was Snap, you know, coming out and revising its forecast earlier this year that sort of kick started this market meltdown. David, what's your take on what we're seeing from Snap? Even Evan Spiegel himself saying he's

not happy with these results. Well, I think in the digital advertising business, some companies are a lot better position than others, and Snap is not at the center of the industry. I think it is at risk, and it showed that it's at risk of unusually strong reaction when advertisers start to pull back. I don't think that's the case for some of the bigger companies. UM. It is interesting to me when you look at what's happening with Twitter.

Um it's a company that probably has gained a lot from the sheer publicity around the must efforts, and they are gaining users. So I agree with that it's not nearly as bad as we might have expected. So here's the question, Dan, how much is what's happening with Snap and what we just saw with Twitter signal about the

state of the online ad business? What does this actually mean for Meta or Alphabet for example, Dan, And there's obviously a big drum roll into next week I think one most pivotal week or earnings for tech and then by five six years. But look, Snap, even a good ecomming Snap has had a lot of difficulty getting their arms around their business continuum as viewer as a paper airplane and a hurricane. I still believe when it comes to YouTube in terms of Google and what we're gonna

see even pinterest in others. I think digital ad swelling, but I think media holding up a bit better than feared. But that's why next year to Miki, especially when it comes to meta streets baking in a lot of bad news. But I just continue to not use snap as the best barometer who it's happened the industry. That said, there's a lot of talk now about whether the social media business model is sputtering, is on the verge of failing.

I mean, David, we're seeing Facebook, you know, pivot entirely to a whole new future with meta, in part because I'm sure because of some of the weaknesses that they see internally. I mean, do you think this is some sort of what we've seen so far, whether it's just the last couple of weeks or the last you know, couple of quarters, a sort of indictment on the business

model of social media. No, I don't. In fact, I think the pivot to meta in the metaverse at what used to be called Facebook really has a lot of other causes, and a lot of them have to do with reputational management. Um, I don't think that social media industry is at risk of failing in any fundamental way. I think the evolution is happening faster than some would have expected, uh, particularly with TikTok's extraordinary billion global user arise. Um.

The the incumbents aren't really prepared. They aren't a sleet footed now, especially that as they're so big, particularly in the case of Facebook, uh and Google to a lesser extent. I think Google is the best position company of all of these film myself. So you think Google has the biggest upside in the tech sector, Why, Well, it's it's not that it has. It's just that it's embeddedness in the global economy, not the tech economy, just in the

global economy is so thorough, so immovable. This is not true for the businesses of of meta Facebook, except for possibly WhatsApp, which is a business that really does have a almost impregnable global position. Um. But the Google services, many of them are just inconceivable for people to live without. And I think that is a huge defense mechanism for them. They've put themselves in a fantastic position over decade. It's a building incredibly well designed and useful businesses. Dan, what

tech company do you think has the biggest upside right now? Well, First, I agree with David on on the Google side going into next week, But to me, it's that company and Cooper Tina, it's Apple because I think that's one it's an underestimated demand cycle still even with a swirling macro in terms of iPhone fourteen, you got a quarter of the base by two not upgrade three and a half years.

That services business rocket Gibralton. I think that's going to come through next week, and I think some of the parts the Apples still a SOAKA is the two in front of it. That continues to be our top technique. But Dan, even Apple is cutting back on hiring, cutting back on costs, cutting back on spending for various divisions. What does that tell you? Look, I think that they're

being proven. You're seen that across the valley from Microsoft to Amazon to other But but this is more prudence rather than what I sort of view is just a massive deceleration to tap into business. And I think there's also other areas that they're looking to spend on, and it comes down to what's baked into the stocks. I think that's a theme that we saw a play out with Netflix with Tesla, and I think next week I view, this is sort of better than fear in terms of

how it's going to play on Apple. I continue putting Astrick around that front and center, along with Microsoft being our court cloud name. David, would you say you're expecting better than feared results next week? I think it's hard to predict what's going to happen next week. But one thing that I would say it was on a Bloomberg article this week that I read that recession is almost

inevitable if it hasn't started already. So any of these companies that were not preparing themselves by battman down the hatches would be pretty poorly managed. I do agree. Apple has just done another job, sort of like Google in its own unique way of building businesses that just can't be stopped. So I doubt if they would be slowed much by even the beginnings of a recession. All Right, David, you're gonna be sticking with us. We're actually gonna be

digging into this big hiring slow down. A bit later in the show, David Kirkpatrick, thank you, and Dan ives always good to have you here. Happy Friday. All right, coming up, one tech company after another slowing or stopping hiring is it a sign of ominous economics. Guys ahead talk about that and more. Next, this is Bloomberg. Big tech is hitting the brakes on hiring, from Apple and

Microsoft to Netflix and Amazon. Silicon Valley is cutting back on growth after years of bulking up, the entire industry bracing for a potential recession. Alex Brin could cover social media from Bloomberg News to economies. David Kirkpatrick still with us. So, look, you've got Microsoft eliminating new job openings, Google slow and hiring for the rest of the year, Amazon saying they

overstaffed during the pandemic, now they have to cut back. Alex, what are the biggest headlines you've seen in this raft of news from tech companies that they're pulling back. Yeah, I'm saying a lot of pointing fingers at things like rising inflation hitting costs UM and UH, and customers of folks like Amazon who sell products pulling back spending. I'm also seeing a lot of this idea of macroeconomic uncertainty

hitting companies that depend on advertising on their businesses. I think a couple of really good examples, Emily, are in the second quarter results we saw this week from the likes of Twitter and from Snap. Both of them pointed to this kind of macroeconomic uncertainty hitting their advertisers and causing campaign budgets to go down. So that means that the places that they depend on for revenue are getting smaller.

That advertising pie is shrinking, Snap for um for that company, UM gave some hints into what a lot of these companies might be thinking about. They said, Look, the pool of money that we're making on the top line is getting smaller, So we're actually looking across our business and seeing where can we optimize um our bottom line, Where can we optimize profitability, What other opportunities that were already working on can we look just squeeze a bit more

money out of. And of course, like the rest of the companies you mentioned at the top, they are being really cautious when it comes to adding more headcount and more costs and which investments they are picking because it seems like right now we're in a bit of a chopping environment. Emily, Indeed, it seems like we're getting memo after memo from various ceo saying we're slowing down here, we're pulling back there. I want to warn you about this, David.

You know some of these, you know, are companies that haven't reported yet. They're gonna be reporting over the next couple of weeks. But what do you think they're seeing that the rest of us aren't yet. Well, I think each one is a different story. I suspect that the big companies aren't seeing terrible as spending results yet that

could easily happen in the near future. Uh. Certainly in the case of Meta Facebook, there is a real possibility, as the Great Alex Kendrew has pointed out in his newsletter this week that Facebook Meta really could have their first year over year decline in revenues. Ever. Uh So that would be really a big change for a company that has had a historic run of just growth after

growth after growth for really well over a decade. Um. But but these the thing about Meta too that I think people may forget is that the big advertisers are not their primary source of revenue. There it's very important, but they're small business and media business are really where

their bread is buttered. And you know, at this point in the economic shift, I suspect that smaller companies are still willing to spend to try to stimulate business so my guess is that metas results will not be shockingly bad, although they even themselves predicted growth are slowing. You know, we saw that user growth even started to drop in certain key geography. So they have problems all over the place. They have an identity crisis. You know, they don't even

know who they are the you know, the metaverse. They're predicting too soon. I'm going on. But uh, there's some thoughts well, and there's an interesting question of how did the social media company survivor recession when most of them aren't around in two thousand eight and Facebook was only four years old. I mean, I know that's when you were writing your book, but you know, we don't really have a lot of past experience to to to indicate

how social media will survive a recession. Well, that company in particular has zero exper arians. The irony is, um, I was writing my book in late two thousand and eight, throughout all of two thousand and nine came out. So this is when the economy was in terrible shape, and ironically I barely noticed because at Facebook there was no

evidence of it. What sweve um and so there really is unequivocally you can say Mark Zuckerberg has never been through a real downturn, and be people who are young may not realize in two thousand and eight, two thousand and nine we had a serious recession. That is something very very new for that company in particular. Well, and obviously Mark Zuckerberg has made a lot of big acquisitions over the years, but wasn't able to buy Snap, wasn't able to buy Twitter if that was ever really on

the table. But Alex, do you do think could M and A be a possibility? You know, could some of these companies buy or sell their way out of this potentially if they feel like they have the cash to do so. Um. For Mark Zuckerberry looking at Facebook, um, I that they have this now existential threat of the macroeconomic environment. He's also kind of dealing with this threat of users wanting and experience that didn't originate on Facebook.

The TikTok size elephant in the room is something that all of the metal platforms, from Facebook to Instagram are also having to contend with. Right now, it looks like that company in particular is betting on building and changing both the flagship face Facebook app and the Instagram app to better satiate users obsession with short form videos without trying to alienate the user base um that they have.

You saw changes with both Facebook and Instagram's core experience this week, basically making them look more like TikTok so

um buying their way out of it. You know, I think that would be a big question, and if I were the board of these companies, I would want to be maybe taking a conservative view, because if you're not putting that money toward things like head count and bringing on people too more quickly develop things in house, I would think that those dollars would need to be spent pretty presciently if you're looking for somebody to keep up

with the times amongst these social media companies. David, I believe you were reporting at the time of the dot com bust. I mean, based on your own professional experience. What's your sense of how Silicon Valley, this version of Silicon Valley survives a recession. Well, I don't think survival is in question. I mean, these companies are deeply embedded, as I said in the earlier segment in the world economy.

But but interestingly, the business at Meta that is most embedded is the one they get essentially no revenue from what's that UM, and I find out I rhn UM, but I think that they really will be okay for the short term. It's you know, I think if it's likely a recession will be short if we have one, and I think they will manage their way out. Interesting. Uh, Brinka, you know what are you what are you hearing from

your sources inside these companies? Is there you know? For some of my sources at Facebook, it still seems like good times, yeah, or at least it seems like motivated times, right. Um. You have the company prioritizing things like um changes to their feeds, like I mentioned, to keep up with with

the tik talks of the world. You also have UM you know that whole uh, not legacy business, but existing business, the ad business on Instagram and Facebook basically funding their new ventures into the metaverse, the bright Chinese new object that Mark Zuckerberg has indicated is the future of where they're going. So good times in parts of the business.

I will flag Emily with these hiring freezes and maybe the bad pockets that we're seeing at meta UM, there's concern around things that really matter to a lot of the people on the ground, like diverse workforces and what happens when you're not hiring as many people and how do they continue to contact end with UM the bubbling up of misinformation going into the mid term, So UM, I think that you know, good times depending on what team you're sitting on, might be the way to look

at that. Are you within the groups that are seen as kind of the future, or you know the really necessary changes that are instrumental to making sure that these businesses maintain their cultural relevancy with the users that are so important to them and advertisers, or are you in some of these pockets that maybe are starting to fall below the line UM and are not seen as places that the that their internal dollars should go UM to kind of catapult the company into into and through a

chop your economic environment quick David Snap just shed half its value. Evan Spiegel didn't want to sell before, but do you think he might be more willing now or it could Snap be a target. I think it could be. But really, with Lena Khan at the FTC, the current mood in the US government and the EU, I don't think it's a good time for any of these companies to make a big acquisition um, I also think just quickly a well to mention. You know, I do think

Facebook Metal will get through this. But Zuckerberg's comments recently about pairing back his staff sounded very heartless. I think they were very ill. They showed an inexperienced manager, and it could deter future hiring. It really makes it sound like a bad place to work. If you know, we've got a lot of deadwood, let's just get rid of it. Mm hmm. Indeed, interesting point. Okay, Damn M. Kirkpatrick's CEO of Techonomy. As always in our very own alet Sparenka,

appreciate you joining a few other stories. We continue to watch progressive groups once send a majority leader Chuck Schumer to recuse himself from legislation targeting big tech. They say he has a conflict of interest because his daughters or Get Amazon and Meta. Various different groups have been advocating for anti trust measures cracking down on tech giants. No comment yet from Schumer himself. Commerce at Terry Jena Raimondo says the US can't keep relying on Taiwan for semiconductors.

In a virtual speech at the Aspen Security Forum, Raimondo said Congress needs to pass legislation to support the domestic production of high end computer chips. She also called the fifty billion dollar package quote a spot Nick moment for America. Apple has changed its tune in Washington. New lobby disclosure figures reviewed by Bloomberg show that Apple has been spending more money than ever before. Apple even going as far as deploying Tim Cook himself to work the halls of Congress.

This as the tech giant is fighting the package of antitrust bills that might get a vote next week. Bloomberg Smart German joins us now for more So, Mark, it's understandable that Tim Cook might have more sway if he visits Washington personally than if he sends in a team of lobbyists. But what do we know about how app poll is change in tact. It seems like this is episodic.

Right now. It's a very challenging time, not only for Apple, but a lot of the big tech companies where they really need to up their lobbying efforts to fight against some bills and some circumstances that could really up end some of their business models. Right so, it makes sense to me that Tim Cook would be there personally talking to lawmakers, meeting with people on Capitol Hill, and voicing Apple's concerns with some of these bills surrounding anti trust measures.

Tim Cook also has wanted to float new privacy laws, and him, along with some executives from other companies, are trying to put push new privacy laws there as well. Cook has been making the argument that Apple's privacy centric approach to its products not only is good for the consumers, but means they really shouldn't have to take on these new anti trust bills because they do it in order

to make the devices more private. Now, that doesn't make a ton of sense to me and a lot of people, but that is Apple's argument there, and that is what he has been pushing. So here's a question. Is it working. Is Tim Cook himself of going to Washington making these um pushes, Are our our lawmakers hearing it. There have been some changes to some of the bills, some of the language there that will make the anti trust bills less difficult on Apple in terms of needing to change

things right, particularly with that privacy argument. It has been working in some respects. Obviously, the efforts won't fully work unless these nentry trust bills don't pass, and Apple doesn't have to make widespread changes to its products. But of course it's not only the US where Apple is doing

its lobbying efforts. One big fundamental change that the company is making next year is changing the port on the iPhone from Lightning, which has existed for the last ten eleven years, to USBC, And that's in part due to some changes that lawmakers abroad have pushed. So Apple really is taking it from all angles here and that is

why they're upping these lobbying spends. So this package of tech bills that would potentially curb some of the power of these companies were expected to see potentially some movement on them next week. Any likelihood any of this will pass us, you know, I think it's you know, truly to tell there has been some momentum on Capitol Hill for these bills. If I were to, you know, tell you one way or another, I would just be speculating. I personally think that major changes are coming to Apple's

platforms in either way. Right, there's obviously the Digital Markets Act, there's the acts that you have been talking about. There are the different laws that have been pushed from lawmakers abroad in here at home in the US. Right, So I do think we're going to see fundamental changes either way. I don't think it's about if, but I think it's about when. Whether that's this year, next year, or the

year after, there will be a fundamental shift. And how does what Apple's doing compared to what other big tech companies are doing on the hill, whether it is Meta or Alphabet or Amazon. I mean, they all have huge lobbying arms, right, I mean I think that you can take a look at the lab being spent and some of these other companies are doing. Apple spent a few hundred million dollars. So sorry, let me step back. A few million dollars, not a few hundred million dollars. I

know that's a big difference this year on lobbying. That is an increase for Apple over some prior years, right, But that is about half of what you're seeing maybe from Amazon or Microsoft. But still this is noteworthy because it's an increased for Apple. Just because Apple is doing less or even as much as what those other companies have been doing now for the first time, it doesn't mean it's not a big change for them. So certainly

we are seeing a Sea change. Here we are seeing Apple taking DC in the need for lobbying very seriously. What has been pretty interesting to me is how different the Apple relationship appears to be with the Biden administration that it has been with the Trump administration. I feel like when Trump was around in office, you saw, you know, Tim Cook meeting with Donald Trump very frequently talking about him.

You saw Trump talking about Cook often. But in terms of the Apple relationship with Biden, that has been very different. The last time we saw the Biden say anything related to Apple, he had to do with unionization and Apple retail stores. Tim Cook participated in a Biden administration meeting regarding cybersecurity. But you have not seen the type of lobbying that Tim Cook did with Donald Trump that you're seeing now with Tim Cook Doom with Joe Biden. It

is much different. It seems like the relationship is definitely not as close. Interesting all right, much to continue to follow Bloomberg, Smart German, thank you for your reporting their meantime back to inflation. On top of surging gas and grocery prices, single people are finding another aspect of life is getting more expensive. Dating and as costs balloons. Some datas are scaling back and being more selective about the dates they're going on. This according to data from dating

apps themselves. Bloomberg's Pauline Kuchero wrote about this and joins us, now, so what are we learning about how the dating market has changed? Pauline? Yeah, so, you know, I think that we're seeing that, as you mentioned, with the cost staying on the rise. You know, people really have the love and money the top mind when they're looking for a partner.

That's changing the dating game entirely. Tensions are rising over house to fulfill um and people, as I mentioned, people are scaling back and being more selective dates they're going because they're finding that they're dating costs have doubled. One woman I talked to said she spent on average, about two hundred dollars a month on dating. Now she's spending

about four hundred. So, you know, people are just being a lot more intentional about who they're dating and what they're looking for, and they're finding, you know, that they want to be with a person who is financially savvy and offer some kind of financial stability as well. How is this impacting the dating apps themselves? I mean, you know, I hear a lot from single friends. You know, these apps are already kind of expensive and you don't know

for sure if you're going to get that payoff. Are the costs of a subscription to you know, see those extra profiles or get that extra information? Is that going up? And are people paying up or is this, you know, something that's discretionary, something that they're cutting off given that

they're under pressure across the board. When it comes to prices, well, I can't say too much about the subscription prices on dating apps specifically, but when we talk to the dating apps, he said, although that some people are being more selective about their dates, they're not necessarily stopping their love life entirely. Some small, select few people are. They are just looking for certain partners instead of you know, going on a

more spontaneous state. They're making sure that they're being upfront with what they want. Um, you know, in the early courting phase of dating, which is an extension of the stating trend called hardballing, and if someone doesn't really fit the bill, um, they're not willing to take a chance on that person. Um. You know. Dating apps are also finding that people are being a little bit more creative

about the dates that they're going on. You know, instead of maybe going on taking someone out to a really nice dinner, maybe they're going to a picnic instead, or they're maybe going to a museum or going to a farmers market and making a home crew feel I love farmers markets, Nothing wrong with that. Are people changing what they're looking for? Um? Do do do these apps say that that is a alving at all? Yeah, we're definitely

seeing that evolve. Um. You know, as you mentioned, Americans are feeling the pinch from inflation, so finding a person who is financially savvy is an increasingly attractive quality. Okay, keep the daters who said they keep a budget have received sixteen percent more matches and seven percent more likes over the past three months than people who said they didn't, and nearly half of date years on the A also so that they would love to find a partner who

earns more money than them. So I think you're just seeing that, you know, people are looking for a person that they know that they can weather a recession with, who they know that they can rely on. Um, you know, both emotionally and you know, financially as well. All right, interesting, Paul, Nick at Chero, thanks for bringing us that Story's more at Bloomberg dot com. Okay, coming up, the etherory emerged now as a date, we're gonna talk about just how

massive the impact could be on the crypto industry. Next, this is Bloomberg. It's time now for our crypto report. And there are new developments in that story of the former coin based product manager who was arrested for alleged insider trading, and coin bas is now pushing back against these allegations are crypto Contributortionale Bossik is here with the latest So is coin based defending this former product manager.

There's really a lot of nuance here, Emily, and really the question at stake here is what is a security and our digital assets securities. So you take a look at this inside your trading case, and you have coin Bases chief legal officer Paul grier Wall talking about how illicit behavior is something they take super seriously. Obviously coin based did cooperate with this investigation. But the thing that's really in question here is that definition of securities itself

and whether this is securities fraud. So, for example, we have Paul Paul where while talking about in a blog post the idea here that seven of the nine assets included in the SEC's charges are listed on coin Basis platform and none of these assets are securities. You have different regulators here coming in and different definitions here, and

he to go on. Paul grow Wealth has also said that coin base has a rigorous process to analyze and review each digital asset before making it available on the exchange, a process that the SEC itself has reviewed. Now, if you go on to read more of the blog post, he talks about and cites the CFTC Commissioner talking about how this is a striking example of regulation by enforcement here.

So you do see some differential between not just the agencies, but also in the way that coin base is interacting with those agencies as they comply with this investigation of an issue here where certain securities were traded before certain tokens were listed. But again, are tokens just tokens or are they securities on Emily and they yet play out? That is the question time indeed, Okay, stay with us. I want to talk a little bit more about Ethereum's

next chapter, the highly anticipated merge. A date has now been set and if everything goes to plan, we should expect Ethereum's final merge to happen the second week of September. More specifically, I want to bring in our next guest, Matt Hogan, c IO a bit Wise Asset Management UM. Matt, So curious what you're thinking is around the merge and just how impactful it would be it will be on the broader industry. Yeah, this is a massive piece of

news for Ethereum and for crypto more broadly. I think this is the biggest development in the crypto space since the launch of the DeFi summer in. It's going to transform Ethereum into an asset that institutional investors UH feel increasingly attracted to, maybe even compelled to own, and it could be the marker that represents part of the bottoming

process we're going through in crypto. We may look back on this merge, or the announcement of the data the merge as a signal market that single moment that turned us from sort of the crypto winner UH into at least a sideways move before we go to the next big up move. Now. We recently interviewed the co founder of Tezos, Kathleen Brightman, who didn't have nice things to say about Ethereum. Take who quick listen to what she

had to say. In reality, it's really no different than something like hex which is which is kind of a Ponzi scheme that's crashed and lust you weeks, which is just a token that Big Sleep pays you for freezing at. The longer you've reason, the more you receive. It's just it's a equation. Obviously, we know, Matt this is very tribalistic industry, but she kind of likened Ethereum to a

Ponzi scheme. Yeah, I don't see that analogy. Ethereum is the new infrastructure on which decentralized finance n f t s and stable coins are being built. Teos is an interesting project that's trying to compete with Ethereum, but it's a tiny fraction of the size. It has a tiny

fraction of the developer community. What she was speaking about was part of the merge is going to incentivize long term investors in Ethereum to lock up their eath, to stake their eath, which allows them to earn a yield on their investment, which takes some out of the market and should be a creative to prices. I would put

a more positive frame on it. As a long term investor, you're going to be able to access what amounts to almost adventure capital style investment, one with huge potential payoff, but one where you can earn a yield that could be eight, nine or ten or more. I don't think it's a Ponzi scheme. I think it's the new Internet

of finance and we're just at the beginning of that transition. Well, speaking of that transition and tribal ism here, what does it mean for bitcoin and do you think one wins out of the other, especially when you look at how nascent a etherium is in terms of valuation compared to bitcoin. It's it's a great question. Uh. You know, on one hand, yes,

ethereum will win out marginally over big coin. By that, I mean that today institutional investors have only been in bitcoin primarily, and in the future of crypto, they're going to be in bitcoin ethereum, and I would argue a wide array of assets. That's one of the reasons why bit wise creates crypto index funds. So it is going to force institutional investors to diversify their holdings. But more than that, this is going to be a rising tide

that lifts all boats again. What's happening in ethereum will catalyze new interesting crypto, new opportunities in crypto, and I suspect Bitcoin and ethereum will rise side by side. I think ethereum share of the crypto market could increase substantially compared to Bitcoin. But I suspect that both of them are going to be heading up over the next few years. You know, there's a lot of questions about state ethereum and ethereum, and there's still a bit of a balance

if you look at kind of the liquidity pools. I'm wondering, you know, this is a grand test of time when it comes to decentralized finance. There's so much debate about whether DeFi will win in the end given the issues that we see and in centralized finances in crypto, But how do you know what the issues will be moving forward as this industry goes Yeah, well you don't know. Of course, that's the risk that you take. There is no risk free reward in investing, and there's certainly a

lot of risks in the crypto market. But if you look at what took place over the last cycle, we saw the rapid emergence of Defy, We saw the rapid emergence of n f t s. We saw a hundred billion dollars plus flow into stable coins, all built on

programmable blockchains like Ethereum. As we get through this crypto window and start thinking about what are the new products that we're going to see in the future, we're gonna see growth and defy in n f t s, and stable coins will also see huge growth and things like web three interactions, gaming, digital identity. I think the market cycle, the next market cycle we're moving to, is going to be orders of magnitude larger than the last cycle, and

that was really just a proof of concept phase. This next few years is when crypto goes mainstream. So that's what we expect from Ethereum and the broader crypto into street. So tease that out for me a bit. How how much bigger do you think the cycle will be? Oh? I think it's I think it's you know, many, multiple times bigger. Is the answer to that. Again, we saw if you think about cryptos returns, what drives cryptos returns?

Crypto booms when it develops products that people want. It boomed in the early when people develop Bitcoin, which was this interesting non monetary ast, non sovereign monetary asset. It boomed in when we in the THEORYUM and I c O S. The most recent boom was when we had n f t s and we had stable coins UH and we had defied, but that just penetrated one percent

in the market. I think the market opportunity for all of those are ten x. I think there are five or six other killer products that will see in the next market cycle. So I really think that the next boom could be five ten times bigger than the prior boom. I think it will be the moment that crypto goes mainstream and your friends, your uncle's, your cousins are all interact thing with the crypto market via through gaming, digital identity, music, n f t S, ticketing, defy traditional n f t

s or stable points for payments. I do think it is borders of magnitude larger. It's probably still a year or two off, but you can see it clearly on the horizon, and then we're getting closer to it every day. Matt, how can always good to have you CEO of bit Wise Asset Management, appreciate it and our very own have a great weekend. After a few years of complaints from pro users looking to unlock the full potential of their iPad pro and it's speedy new chips, Apple recently launch

Stage Manager, a brand new multitasking system. The feature let's iPad users run multiple app windows at the same time, and it even works far better than before with large external monitors. The features exclusive to the latest iPads with M one chips and also works on computers running Mac os Ntura. Users can click through their recent apps on the left side of their display and then quickly pop

any of those programs or workspaces into the foreground. But I don't think that this new multitasking system really fully cuts it. It's often confusing and sometimes hides key controls behind extra menus. It seems like Apple came up with a solution that dances around the most obvious one, bringing full Mac os like multitasking to the iPad. The iPad now has big eleven inch and nearly thirteen inch displays in the same M one chip that powers the Mac

Book are and the iMac. It can handle and should be able to make good use of core Mac multitasking features like xpos A and mission control pro users like myself want that full flexibility to run as many windows as possible at one time and quickly clicked between several tasks simultaneously. The good news is is that stage Manager builds in new technologies for the iPad, like multi window

support and rescalable and resizeable windows. That means that some of the underlying technology that would be needed to eventually implement full Mac like multitasking is now built into iPad O S sixteen. Only time will tell if Apple will eventually fully unlocked the iPad. The good news is is that stage Manager today is optional, so it appears that even Apple knows that one day it will need a brand new solution for all iPad users. I'm Mark German.

This is power On, Don't Forget. You can subscribe to Mark's weekly power On newsletter at Bloomberg dot com. Meantime, there is a new social media app in town, and it's being dubbed the anti Instagram. The app requires users to take a photo within a two minute window every day, and it has soared in popularity over the last few weeks in spite of complaints that it crashes at a

critical moment. It's called be real, and it took the top spot in the US in Apple's app store three days this week with one point seven million installs the week of July eleven and a Friday kicker. If you love vintage Apple products, this is the holy Grail. Steve Jobs prototype for the first Apple desktop computer is up

for auction. It was handbuilt by co founder Steve Wozniak in nineteen seventy six and it is one of two hundred different models right now, it's going for about two d thirty thousand dollars and Apple one prototype was sold for four hundred seventy thousand dollars. And that does it for the edition of Bloomberg Technology. We've got a huge week of tech earnings coming up. Meta Alphabet, Apple, Amazon

and more. We will be across it all, and don't forget to check out our podcast anywhere you get your podcasts. I'm Emily Chang in San Francisco. Have a wonderful weekend everyone. This is Bloomberg