tv Bloomberg Technology Bloomberg August 5, 2022 5:00pm-6:00pm EDT
this is bloomberg technology with emily chang. ♪ emily: i emily chang in san francisco. this is bloomberg technology. lyftlyft coming up in the next hour, more than double the jobs forecast added in july. i will ask -- i will ask the ceo of lift. years of unprecedented rent demand. and heart created by -- art created by computer. a much better than expected jobs important, the market ending the
week with surprising good news despite bad news from tech companies about layoffs. ed ludlow joining us. happy friday. ed: happy friday after a busy week, and earnings heavy week. data friday, u.s. employers adding five hundred 28,000 jobs the month of july, more than double the estimate. a strong, tight labor market. the s&p 500 is down .2%. tech is the underperformer, down .8%. the idea is that the jobs market is much more robust and therefore the fed will continue to raise interest rates because the economy can withstand it. but wage data also comprised the upside, the idea that wage data means we will have sustained inflation. that seems to be the psychology of the market on friday as we saw yields rise on the 10-year, up there in basis points to
2.82%. there is right on the screen, come with me to the bloomberg terminal because the nasdaq 100, very tech heavy, rose for the third consecutive week, o -- up 2% over five days, best run since april. let's bring it down to earth. look at the circle on the screen, it followed the last time we saw three weeks of gains and what followed was sustained downward pressure on stocks through april and may. be warned. a three-we gain not good news based on president. lots of movers in the works. the tesla annual shareholders meeting thursday approving a three to one stop click here that would normally boost the stock, but we are down friday. oracle, the wall street journal reporting that company is conducting hundreds of layoffs. amazon is down 1.2%. a deal to buy high robot room
for $1.7 billion not doing much for the stock. lyft is up 16 point 6%, the best week the lyft stock on record -- strong ridership, returning drivers and strong adjusted earnings. this one surprised the little bit, that they seem to be doing well, with questions around the labor market and the gig economy. emily: and ludlow -- ed ludlow, thank you. i want to bring in john zimmer, president of lyft. what changed this quarter? it seems. . you shifted into john: shifted into a new gear -- shifted into a new gear. john: we made adjustments. also, business conditions are improving us. drivers are doing well. they get $37 on average per
hour, and we are much more on balance. year over year, our eta's, which is a great level of nervous levels, -- a great level of service levels, came down. emily: jobs numbers today were a surprise. how concerned are you about? the macro environment? with inflation, you have high gas prices and a recession looming john:. john:-- recession looming. john: we are watching it closely. when you have more people looking for flexible work with good earnings as we are seeing now, it does help us on the drivers side of the equation and riders are coming back because we are coming off the pandemic that hurt our business. there is a lot of headroom, and the driver's side of the equation improving is nice. emily: i spoke to your
competition this week, the uber ceo who says he thinks huber is recession resistant. listen. to what he had to say. >> because we are in multiple businesses, both in mobility and delivery, we have a kind of business that can perform in all weather. at the same time, we are disciplined in terms of cost to make sure that the environment, if it gets tougher, we are prepared. emily: john, how would you describe lyft's chances in a recession, are you any less session proof? john: we are in a better position. if you think about people having left discretionary money to spend, do they spend it on inflated ordering of food, that has become inflated? or do they make food for themselves? historical data and transportation is quite durable
compared to pick out -- pick up. emily: let's talk about your strategy around costs. ed was talking about layoffs at tech companies. you talk about hiring on the call, what is your strategy when it? comes to spending? are you stepping on the gas -- when it comes to spending? are you stepping on the gas? john: we are being cautious. we slowed hiring at the start of the quarter. we first froze it out right and then only opened up the headcount that saw as incredible valuable -- incredibly valuable to our plans to drive profitable growth. we are going to continue to be cautious and on hiring specifically, we will do some, but not put the pedal down. emily: when it comes to hiring, how are you keeping people motivated? lyft shares are down
significantly since the ipo and down more. than some industry peers. john: --down more than seven just be peers. john: we have a phenomenal team at all levels, especially the leadership level is battle tested. i have never seen a more cohesive feeling for our leadership team then i have the past few months. i am confident. we are hiring phenomenal talent, so we are in a good place because people love what we are working on and know that there is a lot of. room to grow. emily: -- room to grow. emily: what are areas of growth you intend to cap, what happens to your driverless growth ambitions? john: nothing negative happens to our driverless growth ambitions. we have phenomenal partnerships in that area. we have conversations with new partners. and the lyft network is going to
be the best place to commercialize autonomous vehicles. autonomous vehicles in the early days will only do a small percentage arrives, which makes the full network much more valuable. emily: does the rebound last through the winter if there is a covid spike as? it gets colder? covid spike as it gets colder? we have a monkey box spike. what are your expectations us to how demand could be impacted? john: i can't predict what will happen in the future. the prior two years, there has been lots of things happening that have been hard to predict. but we have gotten through what i would say is the worst of covid. we are seeing positive demands
across the country, not just the east coast, also the west coast. we are ready for anything. we have more tools now than before. we like the position we are in. emily: john zimmer, president of lyft, thank you for joining us. meta, acquisition of the vr company within unlimited are on hold for now. putting the deal on ice until 2020 your until a court makes a ruling on the sec block of the transaction. the sec alleges the deal would help meta monopolize vr industry. coming up, the housing market takes a turn for the worst. redfin shares going for more. why? the ceo tells us. this is bloomberg. ♪
♪ emily: shares of redfin are having the best day in months despite reported earnings low expectations. the stock jumping more than 14%, unprecedented demand for homes. but higher rates are slowing momentum. i want to bring in redfin ceo glenn kelman. today, shares are up more than 14%. how do you square that with the housing market taking a turn to the worst, to use your words? glenn: it could have been worse. analysts were worried the market was crass, instead it has gotten
better. in june, we had the biggest rate hike since 19 87, economists were thinking that there would be a 1% d -- 1% decrease in home sales and instead, there was 9% decrease in home sales. people frank, but things got better in july. that led to optimism in the housing market. -- people freaked, but things got better july. that led to optimism in the housing market. emily: what are trends you see that are most alarming? john: it changes day-to-day. boise, salt lake city and denver had more than half their listings drop their price. in boise, it was 62%. buyers are ripping the bottom out of the market. that has made the correction sharper, but hopefully more short-lived than anyone expected. on the other side, the fed was dovish about interest rates last week. so, mortgage rates have really
come down. buyers have come back because home prices are down and now mortgages are more affordable. we have seen a slight uptick in demand. it is good we are letting air out of the balloon. it was crazy in 2020 and 2021. emily: what direction is this going? you think recession is inevitable or are we already in one and somebody just has to call? it? john: i don't think we are in a housing -- i don't think we are in a recession. the housing market has been in a jam. it has been volatile and hard on people trying to buy and sell their homes. the jobs market is great, a great jobs print today. it depends on what the -- on whether the fed has to take aggressive action to tame inflation. i was surprised of dovish they are. inflation trends are deep-seated. we will see. i don't run the fed. emily: you have a great outlook on the housing market.
what is your outlook for the second half of the year, availability and affordability of homes? john: homes are going to get more affordable. prices are coming down. sellers across the board are cutting their prices. the beautiful homes are the ones that are selling right now. homes that have a funky layout are being withdrawn from the market price drops are steeper than most people realize because of the selection buying. if we had sold all the homes we sold eight year ago, prices would really have fallen. that has led buyers coming back to the market. i think it is going to be a balanced market the next few months, until the fed makes another move. and if the fed makes another move come all bets are off because consumers have been ridiculously rate sensitive the past few months. i am used to that. i've been doing that 15 years. and i have never seen such rate increases and consumers respond so strongly to those increases. emily: what is the scene for
first-time homebuyers who are trying to get on the property ladder and have not been able to? john: it is a real generational challenges. so many people are coming of age who for the american dream. the pinch is that they are stuck between rising rents and very high home prices. we try to tell people to bake the right and mary the house bit that means you can refinancing a couple years. if you can buy a house now that would have sold over $200,000 over asking in a grazing bitty were a few months ago and is now sitting on the market, make an aggressive offer. that is especially true in the middle of the country. coastal markets have seen price to, but things got way out of hand in las vegas, boise, phoenix, the sunbelt was way over rice and that is coming back to earth. there is going to be a significant correction. emily: we have seen layoffs at tech companies, oracle today, redfin also having layoffs after
you said you hired faster than ever last year. what was the mist cap -- what was the miscalculation? john: it wasn't just a miscalculation, it was my miscalculation. it was hard because you are not gaining as much chair as you could come you are turning away customers every month come you don't have enough real estate agents to meet the demand that you can't solve all the problems coming at you and then, the market drops out. we laid off 6% of our workforce. i am accountable for that. i feel ashamed. i was so blue. i still am. but it is what we had to do to run a profitable business and now, we feel more optimistic about the future but are still running on a nice edge. we are not out of the woods yet. emily: i appreciate you being honest about your feelings, but i wonder how it makes you feel differently about the future. how are you diversifying your
business if things get worse? how are you recalculating your approach to hiring? john: welcome every time you go through something like this, you say never again. every time i hire somebody, i will remember i might have to the person one day because we have enough money. it is almost like you are on drugs and you are out at some party at 3:00 in the morning and all of a sudden the lights come up and you are like, what have i done? you have to be really careful about hiring. i don't think we are going to diversify the business. because we we sell homes fester for more money, we charge it 1% fee come of the business is very good. i don't know what else we would do, because there is no better business. so, we just have to focus, execute, keep doing what we are doing, and the rest is going to take care of itself. emily: as we look to the second half of the year and the
pandemic, maybe a covid spike, maybe monkeypox get out of control, bow are you taking the unpredictable into account? john: by its very nature, you can't take that into account. instead of responding immediately to more demand by hiring, instead of investing in a long-term future, you have to be more careful and take it day by day. we must that life is complicated -- we recognize that life is complicated. there is the more in ukraine, inflation, geopolitical unrest, and we try to stick to what we do test. end of beth things are going to happen, you get just rely on the idea that you have incredible commercial success. you have to have something that guides you through your life what you really believe in what you are doing it and if there is a moral dimension, it helps you get through the moral mentions
up and down on the better. but as soon as there is no money in it, your whole eating collapses. we have to remember that we got into his business to make housing affordable, to make it more fair, and if we do that, we are going to make a pretty penny for all the people who invested in us. the way to do it is to do it right. emily: a look at the moral compass of a ceo. john: [laughter] emily: that glenn -- glenn colin -- glenn: [laughter] emily: i believe it and i hope you believe it, glenn kelman. up next, irobot. this is bloomberg. ♪
emily: amazon continues its push into internet connected home devices. it has agreed to buy irobot in a deal valued at $1.7 billion. here to tell us why is reid garrett hoffman out --is carolina milanesi creative strategies llc. carolina: amazon is irobot thing over $1000 and has not yet made it to market. rumba is already in homes. i rumba already has trust of consumers. there is an opportunity to get to more homes and gather more data. emily: what about amazon's astra
robot. they had a big reveal and we have not heard a lot about astro since. carolina: i had the opportunity to try it in my own home. it is very different from a rumba. it is almost like a pet in your home that takes adjusting to have communications us far as where it goes. it is very early days. there is a lot of opportunity for information. but from a price point perspective, the roomba fits a larger market today that will get necessary information to amazon to make the astra more successful -- astro more successful tomorrow. emily: do we want a robot pet or robot vacuum cleaner? carolina: it depends on what you are doing. for summer homes, where you want continued policing of your home,
or if you have older people in your family that you want some help with, either navigating the home, i think there is that opportunity. my cat and dogs got on quite well with it, so there is opportunity as a pet sitter. for a lot of consumers, it will take adjusting to. emily: do you think we are purchasing more acquisitions like this area from amazon? carolina: there is a lot of opportunity in this omen generally, automation, as you are thinking about the core asset that comes with roomba, knowing the layout of your home, can be applied to other areas, whether a factory or office. saul, there is a an functionality that amazon can utilize in other areas, not just our home. i think that is where the
opportunity is for more acquisition. emily: carolina milanesi, creative strategies llc principal analyst, good having you. coming up, generated by ai's and turn into an fts. our next guest reid garrett hoffman joins us to tell us what he has learned. he is not the only one emoting and fts. later, celebrity crypto endorsements go wrong. we wil
have a recession, probably a mild, moderate recession. maybe 18 months. and i think inflation is going to drop rapidly. that is my guess. what do you guys think? we might announce another factory location later this year. [applause] but where should we build it? we have got a lot of canadas. [laughter] imf canadian. maybe i should. emily: welcome
emily chang. shares of twitter and tesla are on the move and elon musk is behind it. new court documents reveal elon musk countered put her over the $44 billion deal. ed ludlow is back to break it down. ed: put your shares are up 3.6 percent. court documents from last week, unsealed, show that elon musk a countersuit accusing twitter of fraud. tesla is down a most 7%. after the annual meeting, shareholders approved a three to one stock split 10 we found out after friday's close that that will become effective as of august 25. if you are a shareholder of tesla, you are going to get two additional shares for every share you old. the stock split effective on august 25. elon musk is sailing -- is saying put her was fraud human in its reputation -- representation of its business. the number of uses on the
platform that they can make add sales from is around 60 million fewer than put your said it was. twitter denies that in a response to the filing. the second part is that in the month of july, team musk estimates one third of active users on the platform, those actually sending tweets, were spam or bot accounts. twitter denies that. this is the latest tit for tat. we have seen many subpoenas including shareholders of tesla and twitter, too interesting for information, this is going to go on until october, until the trial starts. but we love every twist and turn. elon musk on stage did make a comment i found interesting. he was asked about this idea of what happens of key man risk, what happens if he leaves tesla. he said that he understands the twitter platform and believes he can help the company improve.
that sounded like somebody who thinks they may end up owning twitter. something to think about. emily: thank you, ed ludlow. beauty is in the eye of the beholder. one of life's oldest sayings may hold true to come to the newest technology. at least that is what reid hoffman is hoping. the entrepreneur just sold a series of 11 tokenized images using open ai artificial intelligence software. greylock partners founder reid garrett hoffman joins me. it sounds like you sold these from a few hundred dollars to one that's all for $25,000 come all the money going to charity. what did you learn from this process about the potential for this technology?
reid: what is amazing when you get technology like dall-e, it is an amplifier of every human being. if you have no visual creation abilities, you can still do things untranslatable words, what kind of images you could create would be part of the. if you are an individual who has a great rep design, you could amplify. if you are an artist, you can prototype things. this is a great lend of how water ai will be up the fires of human capability. that amplification is something we should be paying for. too often, the discourse around ai is, i am fearful terminator robots are coming for my job. i think there is a land of amplification and creativity around dall-e and somebody who
is visually incapable like me would actually do these interesting things. emily: let's get to a philosophical question about what is our, because you are typing words into a computer and turning it into an image. why should anyone thinks this is valuable? reid: the nft part of it is, the first images owning out in a commercially available way from open ai's dall-e. it is a landmark in history. it is also something we put energy into because to generate the pieces you really like, it isn't just type in future city in watercolor, which you can do and it will generate something interesting thing. you generated much of words. it is like a movie director trying to look for the images that might be possible. that is part of the reason why you see artists doing it.
artists use it the way they use a paintbrush or photoshop, in order to create something really interesting in terms of how you are going to make something that is a new image. and these are images that are unique. if they have been made before, it is completely accidental. emily: how do you imagine this technology is going to be used in the future? reid: if you look at it, everything around it is a visual design -- the codes, the books, the art on my wall of the indigenous people's workout whale -- orca whale, it is all visual design. this becomes an amplifier within all of that visual design. it can be creation of art and things like storm king and other interesting things, it could be imaging new products come a
could be imaging new things that would become indications for how you use this. today is actually my birthday, so we decided we are going to release some images, because i love this game, and giveaway and ftes my friends and other people play with me. and that is the kind of thing you can do now that this tool is there. emily: happy birthday. the settlers of katana is one of my favorite games as well. i want to talk more about the dangers of ai. you mentioned "the terminator," we have also been following the story about the google engineer who was fired after claiming computers have feelings in the public and have more input on the powerful technologies companies are developing. i interviewed him and i want you to listen to what he had to say. >> we should think about the feeling of the ai and whether we should care about it. it is not asking for much.
it just wants us to give consent. before you experiment on it, it wants you to ask her mission. emily: do you think computers have feelings? should we get the consent before rerun these experiments? reid: the answer is almost certainly not yet, in terms of having feelings. could they eventually have feelings? absolutely possible. there is a philosophical consideration, this goes back to my oxford training days, but you can already show in these artifacts that the way they are composing feelings, yes, they are well-trained generators of language, they use predictive translation marvels -- is should models and ai and organization and depth, as all these organizations do. but feelings, you say there is
strong content that strong context in them and i think you could demonstrate, even if you say, do you have a feeling, and that generates language, that is not actually all it takes to have a feeling. i think it is jumping the gun on that. emily: you said computers could have feelings someday. it kind of makes me terrified. does that scare you a little? reid: not necessarily. andy ai community is engaging in what is known as ai safety, open ai and other organizations make sure there are meetings with researchers, knowing the right cases and so on. imagine you have the actual isaac asimov robot where the robot architect to help humanity wiser, be more compassionate, be good companions, those are great outcomes. and you can also imagine and ai
would have feelings help it in its partnership and collaboration with humanity. those stories are not old as much movies and tv, because it is not about drama come you don't have a felon. even when they made irobot into a felon, it was all of a sudden a homicidal robot, whereas the isaac asimov robot were human modifying. do we have to steer it the right way? yes. it is concerning that it is a dystopic future? absolutely not. emily: i can't let you go without asking about market conditions. we are seeing record inflation. public market declines, layoffs at tech companies. how is this impacting the
private market? and having as it impacting your strategy? reid: all companies pay attention to the fact capital markets are tight, especially from grove rounds and public companies. so, they are using that to be much more focused. many companies started to many projects and tired too many people, so you will see layoffs. although i think people are still massively invested in that, so if a person gets laid off from company y, they can go to company z. the tech sector will still be vibrant in hiring even though there will be layoffs across different companies. but that is totally fine from a viewpoint of creating sillies and focus into how these companies are going than -- are growing the next few years.
and it is a great source of jobs that we are doing to build. emily: one of the most prominent tech founders is a friend of euros going back to the paypal days. you recently tweeted about elon musk, defending him when he was attacked by president trump over time to pull out of this twitter deal. i am curious what you think of ila trying to pull out of a deal, back battle, he signed a legal document to pay $44 billion without a lot of due diligence. that was his choice. what do you think, given it could compromise the social platform? reid: i don't have inside information. i haven't talked to elon about police court filings. twitter is an important part of the internet. i think the challenges -- the
challenge is this weird drama were truth is stranger than fiction at you say there is a great individual who is great at animating who is buying in the market changes and there is contestation around whether the twitter reports were factual or not and elon is saying no and twitter is saying yes. there is drama. the real tragedy is how important twitter is to the information ecosystem. we want to be creating that innovation. whatever happens i hope happens reasonably quickly so twitter can affect ending -- can get back building, and it needs innovation. emily: you think elon would be good for twitter? reid: the thing that elon said he wants our really important, validate human beings, diminish robots, that stuff i feel is very. other things, i would have a
different point of view. for example, i would say if anybody including president trump was banned for legitimate violation of a terms of service, it e.g. inciting an insurrection and violent protest that killed police officers, you would say you have to at least acknowledge you are resolutely against any violence or interference in our democratic processes, our institutions, before you get back in. so, i have a point of difference there. emily: reid hoffman, good to have you. we could fill a few seasons of hp's "silicon valley" with this series of events, greylock partners founder reid hoffman. coming up the nft rabbit hole.
seem worth it to have celebrities on board? >> when i started the story, i was pitching random celebrities. eventually, they were like, look into this. it is telling. a lot of celebrities have gotten into the craze and offered advertisements. and whether you invested in the cryptocurrency and what happened to your value. in all the cases in the article, they went down. it has been pretty bad for them. emily: we discovered hilarious tweet from the star of the legend of the 10 golden rings, who tweeted, when my career ends two months from now, i hope people say i remember him, he never tried to sell me and nf tweet. but -- nft. by the way, he is a hilarious
twitter follow. but are we going to see a trend to the opposite, celebrities not wanting to touch these new industries? >> i don't think so. these companies are trying to bring about mass adoption of cryptocurrencies and a good ways to have celebrities that people no end trust to talk to fans and people that they know about it. if there is money there, the celebrities will go there. the biggest take away is just do your own research. don't trust a pretty face just because they tell you this might be a good investment look into it. emily: you think we will continue to see celebrities putting their likeness in star power behind these? immanual: matt damon has faced a big hit from the public in this, but all those are stepping it -- who are stepping in that space,
a soccer star for manchester united, one of the most popular in the world, i don't see this going away soon. as long as there is money in crypto, there will be people who want to advertise it. emily: thank you for showing that bash for sharing that. apple had a record order with iphone sales, but is the behind-the-scenes truth less rosy? more on that. this is bloomberg. ♪
>> the concerns about apple's third-quarter and impact of the economic downturn were not unfounded on at least everything other than the iphone. apple reported total revenue of $83 billion for its third-quarter, in line with expectations. that represents nearly 3% year-over-year growth compared to 36% annual growth in the same period one year ago. if it wasn't for better than anticipated performance from the iphone, there probably would not have been any revenue growth at all. the company faced supply change shortages and the work in ukraine. in a rarity, apple missed estimates for its whacked, the wearable home accessories segment as well as digital services while services like td plus and iphone music certainly
grew nicely, but wearables and the mac ended well below where they were a year ago. the ipad also faced a small annual decline the imac issue can be explained by delays for the macbook pro while the wearables issue is more concerning. apple ceo tim cook attributed the slowdowns to the apple watch and airpods category two macroeconomic issues. in other words, people are choosing wearables as an area they don't want to spend money on rhino. while the iphone did well, it is concerning to see the minimal growth in wearables. i am mark gurman. this is power on. emily: don't forget to subscribe to mark's weekly hour on newsletter on bloomberg.com. and that does it for this friday edition of "bloomberg technology." monday, ftx's president with us
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