'Bloomberg Technology' Full Show (11/10/2021)

'Bloomberg Technology' Full Show (11/10/2021)

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From the heart of where innovation money and power collide. In Silicon Valley and beyond. This is Bloomberg Technology with Emily Chang. I'm Emily Chang in San Francisco and this is Bloomberg Technology coming up in the next hour. Tough times in the house of Mouse. New Disney plus subscribers trailing Netflix by a long shot. Is Disney streaming service struggling to broaden its appeal after an explosive start. We will discuss. Plus no stopping for review. And the electric

truck maker goes public raising eleven point nine billion dollars in the year's biggest IPO. Our exclusive conversation with the company's CEO this hour. And shares of Door Dash hit a record after an earnings beat and an eight million dollar deal to buy Finland delivery service. Volt CEO Tony Shue will tell us how he expects this to hyperscale

international growth. All that in a moment. But first he's going to look at the markets with Bloomberg Quicktake Gupta. And U.S. stocks fell by the most in a month creating paint the picture for us. Well Emily stocks taking a little bit of a breather and it all comes down to tech really leading the charge low where a lot of it has to do with big tech of course. But you can see

spill over into the semiconductors as well down 2.8 percent. Even software stocks and electric vehicle makers taking part of the blow. Here's what didn't get dragged down though. And it's those Chinese 80 hours tech heavy. A lot of it boosted by those 10 cent earnings overnight. Good news in that regulatory backdrop. I want to broaden this out a little bit and macro this just a touch and talk about the S&P 500 and Tesla's role in it in particular because Tesla and we know this Evey space has been driving a lot of the gains in the broader index. But if you actually look at a terminal chart of Tesla and the current S&P 500 Index relative which is what the chart and showing relative to the S&P 500 before Tesla was a part of it you can really see just how much it's contributed to the current gains. You've seen the S&P 500 which would explain why part of the stock market's

breather right now has lots to do with that search and electric vehicle pricing. Let's go from electric vehicles to cryptocurrency because that's another place where you have seen a lot of gains and a lot of volatility. And another spot we're also seeing them take a little bit of a breather today. Bitcoin was actually one of the sole assets in the green today though for crypto stocks in particular. That didn't translate over. You saw a lot of them get dragged down after Coinbase is pretty lackluster earnings history saying we need more volatility for those crypto stocks to really keep up some of those that momentum. That's the macro picture. Emily let's get to the micro with ad lib. Yeah. Electric vehicle makers the story of the day quite clearly. And Raven's IPO chief among them. This is the trading action we got on Wednesday. Shares opened one hundred and six dollars a share around 1:00 p.m. New York time. And you can see the trading

action we got. We don't normally do this on Bloomberg Technology but this is a snapshot in time. At one point up towards one hundred and twenty dollars a share which is incredible given that the IPO price is seventy eight dollars a share. We lost a little bit of steam towards the end of the day. Really interesting to see retail traders buy into the review and IPO debut of trading. It was the most bought stock in the Fidelity platform. We've doubled the buy orders than what Tesla saw on Wednesday which I thought was astonishing. Why did that leave us. Let's bring up the market capitalization of Rio. And this is a company that will make maybe twelve hundred vehicles by the end

of the year. It has a market capitalization of almost 86 billion dollars on par with General Motors that builds and literally millions of vehicles each year. Astonishing to think. And that is the market cap. You think about it on a fully diluted basis including options and restricted stock. Then that gets nearer to 100 billion. So this is a hot one to watch. Going to talk a little bit more about it later in the show. Some movers in after hours trading on Wednesday. Disney. We've got to talk about this stock. As you can see down three and a half percent have been down as much as 5 percent.

Top and bottom line miss. But what does it come back to Emily who talks about a subscribers subscribers coming in at two point one million added in the fiscal fourth quarter. But the street always looking for more off to that hot stop. Based on the bottom line profit declining particularly in its film and TV business much to discuss. I love that. Thanks so much Christy Gupta as well. Disney's call underway now and to hear what cheap hack Bob Parker CEO of Disney had to say about Disney. Plus production. Take a listen. We announced that our last Investor Day that we expect our total

content expense to be between 8 and 9 billion dollars in fiscal 2024. And we will now be increasing that investment further with the primary driver being more local and regional content. That can still happen. Now let's get more on Disney results with CFR a research director and analyst Tuna Moby who has a two hundred twenty dollar price target on the company. So look big mess in new subscribers for Disney plus also the number of new subscribers this quarter trailing Netflix by almost half. What do you make of that. You know I mean I think they're coming into this quite a while. Epic did signal that we're going to head this kind of subdued. No but I think what the street quite underestimated the

extent of the we think the factories that were called out as a result they talked about the delta very impacts on supply chain. The India Premier League cricket pre-K that was that schedule and also the delayed start of Latin America star plus launch all of those factors. I think the good news is that they're not kind of structural or long term factors which is why we expect Emily Chang this December quarter. We're going to see some type of rebound. But more importantly I think the target that they've

set for fiscal 2024 the midpoint of two hundred and forty five million there is nothing today that makes us believe that they're not going to hit that target. But it's a second phase and we talk about next on the pace that they keep it. But remember it took Netflix almost 10 years to get to their first hundred million to Disney plus less than two years to do that. It's kind of fast forward. They need to double their subscriber base from where they are today over the next three years. Isn't it also important to point out that targets and which is why we think it's still doable. Right. And she did reiterate that that

goal still stands and they are going to get there. They do have some new content coming to Disney plus this fall. Jungle Cruise for example some other films. But I wonder if this shows that the next one hundred million subscribers is going to be a lot tougher than the first and more expensive. We expect that to be a lot tougher. There's no question and that's true by the way for every streamer. Right. You got the law of large numbers set in. But in the case of business let's remember they're only in 60 plus countries right now. And over the next year that number should ratchet up significantly.

They're going to be lunch in Asia-Pacific markets in Eastern Europe in the next couple of months. And I think that as we kind of look out there is a lot of runway for 4 4 streamers. And you heard the clip that you played you know the investments ratcheting up. We had the content span about it. I had barely enough up chip. It seems like you've seen that that number will be increasing largely due to regional and local content. And those are all factors that help to draw in you know the local the international consumers. Well we see a lot of runway ahead. I want to talk quickly about parks. Many more parks now welcoming international guests. Is parks going to be a bigger part of the rebound story or do you expect that to continue to be slow. There's no question that it's going to be be a part of the rebound story Emily. And we

saw that this quarter returning to operating income was quite a relief for the first time in a while. And we also saw that you know the all of the parks is a first quarter where all of parks were fully open for an entire period which is again a positive signal. But you know if you've been in the parks lately you'll see that they have instituted a lot of health and safety protocol. And to our release those measures are now facing a lot of pushback. They've got some new technology features now to

significantly enhance guest experience. Disney Jimmy app has gotten a lot of rave reviews which thanks to the pandemic had a lot of time to work on those theme parks. While there's still some ways off from hitting the peak attendance levels pre pandemic. I think there will be a light right direction. And we saw that margin also starting to come back and it's going to

take some time to get that. But there is definitely some you know some silver lining on the horizon. All right. Maybe CFR a research analyst. I always appreciate your perspective here on the show. Thanks much. Coming up shares of electric truck maker reveal in heading the public markets raising almost 12 billion dollars in the biggest IPO of the year. We'll hear exclusively from revealing CEO R.J. Gorringe about what is next and the challenges on the road ahead. That's next. This is Bloomberg. I would say the biggest challenge that we have and I would say probably across many industries is is really the health of the supply chain.

DAX million. Ringing in the company's public debut the largest IPO of the year and the sixth largest ever in the United States shares rising as much as 47 percent pushing the electric truck. Baker's value past traditional automakers like Ford and GM topping evey rival lucid. For more on the path to the public markets our own Ed Ludlow spoke with Ribena CEO R.J. Syringe in an exclusive interview. We spent years and years putting this together. Really it's so exciting and seeing such a diverse group of people with diverse backgrounds and interests really coming together to create these products. And you know standing there today looking out at the teams as we ring the bell was quite emotional seeing seeing so many passionate faces. It was really powerful. So we're we're excited. And it's course this is the first step of of many with

us becoming a public company and not having the opportunity to really accelerate a lot of hours of focus in terms of scaling the impact that we can have with our products and with what we're building. How critical has Amazon been to the various valuations. The company's been assigned along the way to credibility. They've read reviews it's been able to build. Well Amazon's been just an outstanding partner. Of course

they're a major shareholder. But aside from that I would say much more important than that is the collaborative relationship we have with them. And in the vehicles that we're developing on the commercial side what you see on the surface is a really friendly easy to get in and out of a very efficient very easy to load and unload a van that's optimized around last mile as a whole host of applications. But what you don't see is all the infrastructure that we're building around that we call our fleet a platform. But essentially that the ecosystem of services that we're able to wrap around the vehicle to make it very efficient to run and to be able to work closely with Amazon and understanding what the needs are for us to build that system as has just been awesome. It's been it's been really exciting. And you are working to understand how do we how do we find operatives for efficiency but also how do we make the environment for the drivers and the operators really comfortable. It's something that they want to come into. So you've raised ten and a half billion dollars in the private

markets I guess around 12 billion dollars in the public markets. What are you gonna spend that money on. But I think as you look at the scale of what has to happen as an industry today there's there's well over a billion vehicles on the planet. A tiny fraction of those are electric. And really over the next 10 to 15 years we have to electrify that entire fleet. We have to replace well in excess of a billion vehicles. Gasoline combustion powered vehicles with electric vehicles. So

the scale of this is just it's in some ways unimaginably large. And it's going to require multiple companies to be building multiple products portfolios of products that capture addressable market in different form factors different segments. And for us we're very focused on that. So what we're not you know what we're looking at today is our launch products. But making sure we have the capital to continue scaling the business building additional production capacity for future products. Continuing the development of those huge products along with the technologies is really key. And we are really striving to help

drive and lead this this massive transition that we're gonna have to say over the next 10 to 15 years. Bloomberg's reported you're in talks for the city of Fort Worth to invest five billion dollars in a plant that you're looking at potential sites for a plant in Europe potentially the UK. What's the update on those plays. Well we haven't been any announcements around second facilities second or third facilities. Are certainly a lot of speculation.

But it's these are really important decisions. And for us it really comes down to looking at the ability to recruit an outstanding team to come in and help drive and operate these these facilities. So looking at that the pool of talent that exists in each of these locations is potential locations as well as of course the access to the supply chain. So where our suppliers are and what the logistics looks like to bring our brand components in. On the supply chain you delayed the start of production on the all one T. More than once. You know you talked about a shortage

of semiconductors where all the pressure points. Is it in semiconductors. Rising commodity costs labor. Where are you seeing the choke points. I would say the biggest challenge that we have and I would say probably across many industries is really the health of the supply chain. And you know if you think about building a vehicle like this like our R.A. there is around two thousand parts that come in from item parts that come from suppliers. And this is one of those rare situations where a ninety nine point five percent is not good enough. Meaning if you know ninety nine point five percent of the supply chain is ramping at the same rate of our production but point five percent doesn't that of course constraints creates a constraint or a throttle for how fast we can ramp thrust of the sodium. And that's certainly the

world that we're living in along with many others. Of of managing what is actually a small number of suppliers but working really close with them partnering with those those organizations to make sure that CAC they can keep up with our ramp. And that is that is a major focus for our team. And we are fortunate to have some great folks that are on the ground working with those suppliers making sure we can ride this ramp phase. Our very own Ed Ludlow there in an exclusive interview with and CEO R.J. Scrunch. Coming up Jordache going global. Shares in the food delivery giant jumping on a deal to buy a European delivery app. I'll talk DAX with Daud actually your Tony shoe about what it all

means and how food shortages are impacting the business. That's next. This is Bloomberg. A surprise deal from Daud. The food delivery giant buying Volt a Finnish food delivery starter for eight billion dollars in an all stock deal. It is one of the largest mergers of a Finland based company ever. According to Bloomberg I spoke earlier with Ash CEO Tony Hsieh about what this means for the company's international growth. I'm super excited about the role partnership. For us it really represents wholly our long term investment in building a global business involved. We really see you know three amazing things coming together for us. One it's a team that shares our vision for transforming local commerce

and they also share the way we operate. And you know competing on building superior products and caring about taking every ounce of inefficiency out of the system and really building something for all stakeholders. Second it's a business that has an incredible runway for growth there at two and a half billion dollars of gross order value annualized today with attractive unit economics largely because of their superb retention. But when you combine that capital efficiency with just how much runway is left in their markets there's this business will scale for a long time on its own. And the final thing is you know this

partnership really gives us the intentional focus and it accelerates our ability to operate across multiple geographies in a hyper local context. Now they also deliver more than food. They deliver cosmetics and electronics. Looking out into the future how big a piece of the door dash pie. Do you see non-food delivery being well liked. Doordarshan division was always to transform all of local commerce for VoLTE. I mean Volt's mission is to make life in cities better

and they plan on doing that by bringing every physical business whether it's the local butcher shop the local grocer flower shops cosmetics stores convenience stores certainly restaurants you know and bring all of that online. And that really fits very well with the door ash mission which is to transform physical businesses and help them compete. And the way we do that is by building the largest local commerce app the door dash app to bring incremental demand. And also by building the largest local

commerce platform where we're giving merchants the same tools we've built for ourselves. Products like Fresh Drive and Store Front to help them build their own digital businesses. So I think you know an increasing part of the portfolio will certainly come out of restaurants. I mean as you saw in the third quarter results that we announced just yesterday now. Twelve percent of our monthly active users are now shopping outside of the restaurants category. That's up from single digit

percentages just at the beginning of this year. There are supply shortages of almost everything around the world including food. And I'm curious are you seeing prices rise on menus and how is all of this impacting Jordache. Yeah you know I think one of the things that's playing out right now in the macro economy is while governments around the world I think absolutely made the right decisions to inject money into the system and really prevent a global recession I'm in the middle of a global pandemic. Now some of the consequences now are only playing out. It certainly wasn't obvious and wasn't you know probably

impossible to predict all of the consequences that would have happened from some of those actions. But we are seeing rising prices as you as you're discussing that's happening with supply chains all impacting you know grocery stores impacting convenience stores and other types of retailers. We're seeing some of that happen obviously in the restaurant space as labor is tight and labor costs are rising. So we're certainly seeing some of those inflationary pressures. I think what's what I'm hopeful and optimistic about is that if you know governments alongside with business will work together and actually address these issues. You know I think we certainly did the right thing preventing a global recession. Now we have to do the right thing and actually confront some of these consequences to mitigate these tradeoffs. We're seeing driver

supply issues continue to challenge Uber and Lyft. And you know often after I do an interview with either you or Dara at Uber or even Fiji at Insta Card I hear from drivers who say we're still not paid enough. How has Dasher Supply been impacted through the pandemic and what trends are you seeing now. We're actually seeing pretty healthy levels of DAX supply over 3 million. Darfur's earned over 2.8 billion dollars in the third quarter. And you know I think we you're seeing is it really goes to speak

to just how complementary that bash or work is in terms of earning fast flexible earnings opportunities alongside traditional work. You know the vast majority of doctors over 90 percent of them dash fewer than 10 hours a week. And that's because the vast majority of them actually have full time jobs. And so they really see this as supplemental earnings opportunities. And we're very very proud of the earnings that they've seen. I mean not only are they billions of dollars you know in the third quarter but they've actually gone up 30 percent year on year. And it's deficit earning nationwide you know between twenty four twenty five dollars in which they're delivering. Now you disclosed dash past subscribers for the.

This time this year they almost doubled from 5 million to 9 million. And I'm curious how that's impacting order volume and frequency and basket sizes. Well Dash past has been a big driver. I think of the value on an underwater dash as as we shared in our shareholder letter. You know Dash past membership has grown sequentially every quarter. It's certainly grown year on year. And it's really shown that especially as thought ashes you know giving back more literal value in the form of a greater

affordability. It's also giving value to customers as we're allowing customers to dash fast members to order from more categories such as convenience grocery liquor and other retailers at the same dash past membership price. And so we're adding more value to the program. And as a result I think we're seeing consumers you know continuously shop more and more and more as part of DAX. Jordache co-founder and CEO there Tony Shoe. Still to come we're going to find out about door dashes and how they're booming deliveries are impacting. My next guest is CEO of Marketa.

Welcome back to Bloomberg Technology AM Emily Chang in San Francisco. Let's get back to the markets with our own critique group decorating. What are you watching now. Well Emily let's just start off with those streaming wars because they were all the rage in 2020. You had these major companies Disney Netflix really rivaling each other to try to get the end subscriber. And now look at what we're doing here year to date. A lot of this

streaming services are actually lower except for Netflix law. That coming from squid games. And this is actually not including the droppings on Disney after hours show tomorrow. This chart will be even harder to look at. The streaming wars really something you want to keep in mind given that in 2020 there was a major pandemic trade these big tech companies especially because a lot people were at home watching movies watching shows this year not so much. This is really cause suffering from that

re-opening trade. I want to go from streaming wars into cryptocurrency because this is another spot that's kind of had a little bit of a rough ride. I want to compare this to Bitcoin's pretty monster rally. One hundred and twenty one percent year to date history hitting at sixty eight thousand level in intraday trading today and with it in year to date taking some of those crypto stocks. The exception of course being Robinhood which really hasn't been able to grasp some of those crypto gains despite a lot of their actually end revenue coming from those crypto users. Coinbase even with today's and yesterday's I say

the after hours drop yesterday and today really citing that lack of volatility and third quarter still up 31 percent year to date. Of course it is after all. Still the Bitcoin miners that are reaping the most gains up. One hundred fourteen percent. Music right. Boxing as a prop as a proxy for all the miners. But Emily I think you'll get my get my point here. I want to switch from crypto currencies to payment firms because this is another spot that actually hasn't been having a ton of luck this year. And this was all the rage once again in 2020 when we're talking about using digital cards debit cards for example using Venmo accounts. A lot has to do with just being contactless. And now in 2021 as more people go out you start to see companies like PayPal like wax actually underperform. Year to date the question is how do they keep diversifying. How did they keep working with other payment companies like a firm like Square to keep that momentum going and perhaps pull them out of this tough time.

They seem to be having Emily. Right. Great. Thanks so much. Want to keep the conversation going on the world of fintech and Marketa the payment platform that helps companies like Door Dash Uber announced a car process. Their payments just reported its third quarter results revenue jumping more than 50 percent. The stock actually way up after hours. The CEO of Mark and Jason Gardner. With us now. So Jason what was the most significant driver of today's results. Emily thanks for having me. Good to see you again. We just see continued sustained growth. We had 56 percent growth quarter

over quarter from last year. We saw again massive growth in buy now pay later. We're continuing to see big growth in our non top five customers. So we've reported that we saw a reduction from 72 percent in concentration and square down sixty eight percent. And that truly shows the power of our platform. So we see where our customers like Square are using lots of different service area. And we're continuing to grow around the world. I just spoke with one of your big customers Tony Hsieh the CEO of Door Dash. You also work with in-store cart. You work with a firm. And I'm curious how the supply chain challenges that seem to

break crippling networks around the world are trickling down to you and your customers. So we do see I think we've all seen the experience of how the supply chain is affecting the market but people still need to pay for things whether it's consumers paying merchants whether it's consumers paying consumers. We're still core to moderate card issuing and the business there. So as we continue to grow whether it's creating the gateway for Coinbase cardholders is spent at the point of sale. We are continuing to grow the business in this face of the global supply chain issues.

You clearly see a future in crypto. Talk to us about progress there and what the next step for Marchetti is. So we purpose build our solutions. We purpose build for crypto. Whether it's Coinbase fold backed sheik pay we create the ability for people to spend their crypto currency balance at the point of sale by creating that gateway. So when a card a swipe

at the point of sale we send a message to Coinbase. They look at the card holders balance in crypto then convert that crypto to an amount which then converts to fiat currency at the point of sale. So you can't technically spend crypto at the point of sale. We have created a way or a gateway to make sure that happens. So we're seeing great growth there. I'm a big believer in crypto. A big believer in block chain. You and I have talked about this many times. We're going to see a lot more to come. You also said the last time we spoke pretty matter of factly that crypto was going to get regulated. You know when do you see

that happening and what will the impact on market and markets across the world actually be. So regulation is good regulation of crypto is good. I just came off a couple of weeks ago from money 20 20. I know you've been there before yourself which is sort of the preeminent conference around everything fintech. A lot of talk around decentralized finance in crypto and block chains. Also AML and compliance which compliance and crypto actually fit together pretty well. So of a draft off of that. In regards to regulation as well that goes into a place of trust

and verify. We see a bright future in regards to crypto also decentralized finance as we begin to to grow the business there. But again. Visa and MasterCard have interconnected the world. For companies that want to accept cards there is a lot of growth there in the bottom card issuing a loan. However you clearly have seen us dip our toes into crypto currency inflection. All right. Well we'll keep watching or those Tesco. Jason Gardner founder and CEO of Korda thanks so much for stopping by. Coming up a call to action to save the planet. We're going to speak with longtime venture capitalist and chair of Kleiner

Perkins John Dorr about his new book Speed and Scale and what he believes is the path out of the climate crisis. And as we head to break let's take a look at shares of bumble dating app raising its revenue forecast for the rest of the year. A sign maybe that the easing of pandemic restrictions has brought new enthusiasm for matchmaking. We're going to find out more about it when bubbles know. Whitney Wolfe Hurd joins us Thursday right here on Bloomberg Technology. This is Bloomberg.

As we near the end of COP 26 in Glasgow much has been said about what we need to do to address climate change urgently. And one of the most promising trends toward cutting carbon emissions is the unprecedented shift of corporate financial decisions from fossil fuel to clean energy. Venture capitalists and chair of Kleiner Perkins John Doar has been leading Silicon Valley's clean tech movement since 2006. And his new book Speed and Scale dives into how we can reach net zero global emissions by 2050. John joins us now. John wonderful to have you back on the show. Your daughter I understand actually inspired you to write this

book. What did she say that sparked you to action. Well this all started 15 years ago after we watched Al Gore's movie. You remember An Inconvenient Truth. Well Mary Door was An Inconvenient use because at the dinner that evening we went round and said how do people react to it. Mary said to me Dad I'm scared and I'm angry. Your generation created this problem. You better fix it. And I was speechless. The room went silent. Honestly I didn't know what to do. And so partners of mine and I decided to learn more about the climate crisis. And as you know we traveled the world and visited labs. We went to the Amazon to China. We started investing in over the course of three funds invested

a billion dollars in some 70 or so ventures. Many of them failed. It was really hard. And in fact some gape said we should give up. We we stood by those entrepreneurs and today their shares there were some 3 billion dollars but more than the money. Companies like beyond meat or quantum scape have really set a course to drive others to take action in meat without meatless proteins and in better batteries. As an example but what I know now is it's very clear we're on the verge of a

catastrophic and irreversible climate crisis. And so we've got to act in more than anything else. What we need is a plan. OK let's talk about that plan because you have one everyone talking about reaching net zero by 2050. How are we going to do it. Well it turns out there's six big buckets of opportunity to reduce 59 gigatons of emissions to net zero by 2050 or sooner.

And those six simply are to electrify our transportation clean up our grid with solar and wind to fix our food systems to protect nature and and then to. Clean up the industrial processes like cement manufacturing with those five. We can remove forty nine of the 59 gigatons of emissions and there's a fifth CAC sixth category where we clean up the stubborn remaining carbon for each of those big objectives. Emily we have a handful of key results. Okay. Our

style the way Google or Andy Grove would do them and this whole plan it's available for free. It's on the Web site speed and scale dot com. So you can download it print it out and get some sense of the magnitude of the transformation that we've got to go through to pull this off. Now you came to clean tech many years before many other venture capitalists. And as you said many companies failed at this point. Do you still feel like you have something to prove there. Well I think we have something to prove every day all the time. But the the the climate no pun intended has really shifted in that regard. When we started there was maybe 2 or 3 billion dollars per year of

venture capital invested in clean tech. This year the estimates are it'll be 10 times that amount. Save some 30 billion dollars. Larry think the CEO of BlackRock. He's he's he said he thinks there'll be a thousand unicorns and climate tech. So. The investor sentiment has changed both for venture and also for institutional investors. There's an institutional investor

alliance of some one hundred and fifty trillion dollars of portfolio capital that said they want to see their dollars aligned with net zero enterprises. So this the corporate sector the investing sector the entrepreneurial sector they're all leading the rest of the world. It's our governments and political leaders that are reflecting public opinion and. So you spoke to many business leaders including Larry Fink as you mentioned Bill Gates Sundar Pichai Jeff Bezos. I want to talk a little bit more about Jeff Bezos and Amazon. Given their climate footprint how can they be more a part of the solution. Well they're a major part of the solution already. They've pledged that their operations their supply chain will be net zero by 2040. That's 10 years ahead of the Paris goal. And then they've reached out to other businesses to sign them up for the

climate pledge is what it's called easily as if impressive to me is that Jeff Bezos has committed 10 billion dollars to climate philanthropy and that makes him the largest climate philanthropist in the world. So look everywhere we turn we need more ambition and more urgency. But Amazon's helping to set the pace. What about Google. Google's also made some pretty bold targets. Google was very early in matching all of its electricity usage with the purchase of renewables. They've done the boldest thing of all. And that's to say they intend by 2030 to have all of their energy needs directly supplied by renewables. So no offsets no greenwashing. They're gonna use solar thermal geothermal energy so that every

Google query you ask about can be powered with renewable energy. They're also building a wide range of tools for municipalities to do planning of their transit systems and for even individuals. Now on Google Maps to choose the most climate friendly path to get something done. So what are the big takeaways from COP 26. Are you seeing more

business as usual and is enough really being done at a global level. Well when Gretta Thornberg says COP 26 is a lot of blah blah blah she has a point. The point is pledges are fine. What we really need is action and follow her. I'm very impressed by what the COP conference agreed to do around methane emissions. Also it's important that cop is not over yet. Just today the US

and China did something really worth noting and they issued a memorandum of cooperation which identified five areas in which the US and China are going to cooperate beyond what's in their current pledges and agreements. So I think. The current plans do not get us far enough but. They should make us all for. Hopefully there will be less blah blah blah as you say. Now I have to ask you. You have seen so many cycles of innovation in Silicon Valley. What do you think is going to define venture

capital investing and tech growth for the next decade of post pandemic. Silicon Valley. Well I believe there are huge tsunamis as I think you know the first of which was the microchip in the P.C.. The second of which was the Internet the third of which was mobile and cloud at about the same time we've entered the fourth wave. And my belief is that it is the combination of the pervasive reach of A.I. technologies and the economic imperative of the climate crisis. I think climate will be the largest economic opportunity of the 21st century and technology will play a really important role. John Door chair of Kleiner Perkins. Out with this new book Speed

and Scale. Wonderful to have you. John thank you for joining us. Coming up revisions big IPO. We're going to dive deeper into today's debut on the Nasdaq and the future of the electric car market next. And that is these earnings call has wrapped during the call. CEO Bob Peck sharing news about what audiences can expect to see soon on Disney. Plus this is Bloomberg will journal with his reach more than one hundred sixty one million dollars at the global box office in less than a week. And Disney's In Control which premieres in theaters on November 24. We'll come to the service after their exclusive theatrical run.

A story we continue to watch Zillow has agreed to sell about two thousand properties from the home flipping business that it is winding down. Bloomberg has learned that New York based investment firm Premium Partners will buy these homes. Premium owns more than 70000 rental homes across the United States. That makes it the country's second largest single family landlord behind invitation homes. And I want to wrap this up by taking a final look at revisions roaring stock market debut the biggest global listing of the year. Let's bring back our at Ludlow and Crystal Zen who covers IP shows for us. So Ed obviously a huge

scoop for you. Exclusive interview with R.J. Gorringe today. What's your big takeaway as someone who's been covering the company for a really long time. And by the way his very first interview before they had pictures of anything they were working on was right here on Bloomberg Technology. Right. I remember in August 2013 when they kind of said oh we had this skateboard design for battery technology for years. And then they turned around go just kidding. It's a pickup truck. You know investors

have been following this company closely for a long time over the course of many years through the private markets. They attracted 10 and a half billion dollars of investment from big Wall Street names. It wasn't just Amazon. It wasn't just Ford. And those investors came along for the ride. You saw many of them commit to this IPO. And what was so crazy about the trade on Wednesday was the retail investor interest as well. You know what is it Shery Ahn. Does it have a battery electric pickup.

What do Americans love. They love pickups. You know these two things are a match made in heaven as far as the electrification story goes. Chris the way you make the response from investors today what's the big takeaway. I think it's really interesting looking at the relationship of Ford because at the end of the day it Rubin's valuation adds about eighty eight billion which made it a bigger carmaker than Ford is for being one of the investors. And I think what Ed mentioned retail investors was a really interesting component because seven point four percent of the deal was allocated to retail investors. And as we all know retail investors love to chase deals even though that was a small amount that really kind of reflected in the early days of trading where stocks were up. And it touches the 100 billion club very very briefly. But what's interesting is also that it's

at the year end and overall this year IPO haven't done as well as the indexes. So you see a lot of fun. Mutual funds portfolio managers trying to really capture Alpha at the fourth quarter of the year which also make those deals an extra bit more attractive. So all of that we saw a very interesting day of day viewed from IBM today. All right. Love this video of RTS and just children ringing the bell at the Nasdaq ad bell. The company now has a bigger market cap than GM and Ford though while behind Tesla could be in shape up to be a bigger competitor to Tesla. Yeah it's really interesting you know going into this listing and you see the kind of drama with the price action we got on Wednesday at one point shares hitting one hundred and twenty dollars almost. You know these are big numbers for a company that's built very few vehicles and we'll build maybe twelve hundred by year end. But investors will talk about Amazon the Amazon effect that Jeff Bezos effect. Not just

that Amazon's an investor. It's that they have this order for one hundred thousand electric delivery vans. And it's a point of differentiation that really has over Tesla currently. And also you know it's very visible revenue. The street can look at that and say five billion dollars of sales for electric vans. We see what the pathway forward is here. Crystal talk to us about investors here. Ford Amazon big investors. What does that say about the future of the company. Yeah I think what Ed said is really it's really important because automaker rules rely on contracts. And if I learned anything about anything this week is if you announce something with a contract like Hertz with Tesla it's gonna do something to your stock. So it would be really interesting to see when those trucks get

delivered. But I would also point out that the deal had a very very heavy allocation to its cornerstone investors. So on top of the investors such as Amazon and Ford people like Blackstone are also getting a big chunk of the deal. They took up up to 5 billion off the transaction. So the deal itself looks like it's one hundred eleven billion deal. But in fact it's much smaller.

And that's why the demand is that much more intense. And Ed quickly how do you expect demand to evolve given that you know a lot of people who can't get it yet but then once it does come out will there be another wave if you will. Yeah this is a supply constrained business. Demand will exceed their ability to build these trucks for years literally years and years. There's

a concern from Wall Street that this truck cost seventy thousand dollars. And even though it fits the category of what people want to buy there's only so much addressable market out there that's willing to pay that level. Whereas if you look at Tesla that vehicles are slightly more affordable there's a bigger mass market appeal. So if there is some concern in the marketplace it's that perhaps Rubin has a ceiling on what it can actually sell each year. But again it has a point of differentiation in

its commercial vehicles. All right. Bloomberg's own ad Ludlow and Crystal Zee. Lots to continue to watch. Thank you both. And that does it for this edition of Bloomberg Technology. Make sure you tune in tomorrow when we'll be joined by Bumble CEO Whitney Wolf Hurd and selfies. Anthony Noto. I'm Emily Chang in San Francisco. This is Bloomberg.

2021-11-11 19:54

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