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tv   Bloomberg Technology  Bloomberg  November 9, 2021 5:00pm-6:00pm EST

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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. ♪ caroline: i am caroline hyde in for emily chang and this is "bloomberg technology." coming up, bitcoin soares and coinbase slumps. third-quarter results missed wall street estimates.
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users are declining. plus, robinhood data breach is a nightmare. five million email addresses were hacked. can the company live up to the safety mantra. and we speak with the ceo on making health care easier, and the series e finding that the company just got to make that a reality. first let's get a look at the markets. u.s. stocks halted their longest winning streak since 2017 in terms of the s&p 500, sending major indices a little bit lower off their all-time highs. kriti gupta to break it down for us. kriti: after an eight day winning streak, stocks ending in the red. big tech not commit to its rescue. stock 60 index was out performer. what stayed in the green all session long? do currencies, up 3%. i went to delve into the semiconductors. check out this terminal chart.
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we know that evs have been surging. take a look at what else has been, chipmakers. it takes more engine, and electric engine, than a regular engine does. the stock market seems to knows -- seems to know that. ever since that big pfizer announcement about the vaccine, you do see that is a very predictable trade, something to watch if and when that relationship diverges. let's go to the earnings story. palantir is down after hours, much more intraday after folding the most since february on shrinking margin forecasts. you have doordash higher on the day, 7.8% after hours, this after they announced a deal with a finnish food-delivery company for 7 billion euros. and we have coinbase missing the
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estimates, tying that to lower volatility in the third quarter, a lot of retail value that was driving the crypto space was down a little bit. those shares down 10% in after-hours. we will get more into the topic with our own ed ludlow. ed: there are some keywords throughout the shareholder letter that give it away. yes, there was a mace on the top and bottom line, but if you look at the trading volume overall, it is much softer compared to the prior quarter, around $320 billion or so in the third quarter, down from $460 billion in the second quarter. read the shareholder letter, and the word "volatility" appears 17 times. often in reference to greater volatility or lower volatility. the take away is trading volumes were down quarter on quarter. clearly, the market not liking it. let's get into the meat of this with brett harrison, ftx u.s.
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president, a fellow u.s. regulated crypto exchange. a lot of unpack here. what is your take on these coinbase numbers? brett: definitely a lot of unpack in the shareholder letter. coinbase as a business developed as a retail-focused business. they have 70 million users, 7 million monthly active users, and as we know, retail lobster trade crypto right now, but it is moving a lot, especially when it is moving up a lot. we have seen volumes pick up on exchanges across the u.s. in the last few weeks as crypto has reached an all-time high. but early on in the quarter we were seeing general lower trading volumes, lower volatility, and that seems to have a huge effect on the amount retail once to actually transact. we are seeing a lot of mentions in the coinbase letter about how much your business is correlated with the volatility of the crypto market. ed: so coinbase is talking in
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the shareholder letter about how the company is a long-term investment -- it doesn't want investors to pay attention quarter to quarter. but one of the things analysts caught on to was how use of the app spiked after the listing of the shiba inu coin. they want to move into nfts, non-fungible tokens, as well. what is the future for the platform overall? brett: one thing that really stuck out in the letter was the fact that, bitcoin trading on the exchange -- in general, bitcoin dominance in the crypto market cap as a whole keeps going down. the amount of users that are using more advanced exchanges are going up. you see people trading alternative coins -- ethereum, solana. certainly another exchange, they have both been growing in volume. people are using things like their earned products, there staking product, and now they are getting into nfts.
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just like ftx, getting into the nft space, they are looking to make longer investments in the web3 ecosystem and provide better experience. ed: let me look at this chart on the bloomberg terminal. bitcoin had an astonishing rebound since july, but it has lagged the bloomberg crypto index which includes other coins, including ethereum. is this a maturing cryptocurrency market or is it still nascent, to the mind of institutional and retail investors? brett: i think it is still nascent. a lot of institutions in the u.s. have yet to be able to tap the full potential of crypto because of their compliance issues, regulatory issues that are preventing a lot of these major institutions from getting into cryptocurrencies. we are just starting to tiptoe into institutional adoption by the first crypto futures etf being released, but that is just the beginning.
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until we see a better regulatory clarity that allows for institutions to get into cryptocurrencies like bitcoin and ethereum, only then will you start to see the maturing of this market. caroline: full disclosure, my husband works as a senior manager at coinbase. i will ask you about the regulatory question. i am sure you are talking to regulators yourself. how swiftly are we going to see a less nascent regulatory framework here in the u.s.? brett: it is a great question. talking to regulators and thinking about the regulatory landscape right now is a major part of what we are doing at ftx. we truly believe that the long-term viability of this industry rests on the ability for exchanges like ours, and the gatekeepers of this ecosystem, to interact collaboratively with regulators and lawmakers. it is very clear that this is a top of mind for these agencies.
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we want to get to a place where there is a good federal regime regulating its cryptocurrencies and other kinds of crypto assets. all the discussion around the infrastructure bill passing was the beginning of all of that. we think this is imminent for some sort of decisions, or the beginning of bills to come out that will try to shape the future of what this is supposed to look like in a way that makes people feel that this is no longer a french industry, but a properly regulated -- no longer a fringe industry, but a properly regulated industry. caroline: and it is evident nfts are no longer fringe. christie's, the auction house has once again -- is once again auctioning off nfts tomorrow. how do you think such an auction will help affect nfts? brett: look, nfts are growing in their adoption. it helps that now exchanges,
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centralized exchanges, not just de-fi exchanges like ftx and coinbase, are jumping into the nft space. they have a lot of appeal for people. they make crypto relatable. thinking about things like layer 1 block chains and staking, that can be hard for people to put their minds around. by the idea of a collectible, a piece of art where you can trace the origin of the art for a particular creator or minter, that has a lot of appeal to other communities in the world, art communities. nft is really going to help the world get more into crypto, not less. seeing these auction houses really equate nfts with other forms of art is only going to help that will adoption of nfts. caroline: ftx u.s. president, brett harrison great to have some time with you and of course, ed ludlow great analysis from you. we thank you both.
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meantime, let's look at apple ceo tim cook has been talking about cryptocurrencies. you are no immediate plans for apple to accept crypto. the ceo reveals he personally invests in the cryptocurrency,. but he. has no plans for the company itself to invest in the asset. coming up, our next guest is out with a new book on how investors can identify future winners in the space. i will chat with him next. this is bloomberg. ♪ they didn't say his name
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caroline: mark mahaney ha
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been covering internet stocks on wall street since 1998 from morgan stanley, citibank and others. he has seen the boom in the tech industry become the hottest and most profitable sector. now he is out with a new book entitled "nothing but net." it takes a look at how investors can identify future winners in the space. mark joins us now. brave to take on writing a book. not for the fainthearted, not for those without as much time as you have as well. what sparked the idea? why sign up for such a herculean task? mark: i do enjoy writing. i have been covering internet stocks for 25 years. i wanted to take a stab at stepping back and thinking about lessons. i was inspired by a classic book written in 1980, great fundamental advice for retail investors. even institutional investors, about how to tap into the market . i wanted to do something
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similar, except using today's household names such as netflix, facebook, and google. caroline: let's talk about some of the fundamental advice. a lot of it comes down perhaps to not looking at in a the way we are used to, certainly with value stocks. mark: that is true. if there is one thing i am trying to people, it is to remember the phrase or the acronym dhq, "dislocated high-quality companies." the best way to invest is mitigate valuation risks and fundamental risks. to the first by looking at stocks that correct by 20% and 30%. second is you try to find high-quality assets that have excellent management teams, super strong consumer value propositions, and companies that are really good at product innovation. with the package together and those can be, really good sustainable investment longs.
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you don't need to trade to make really good money with a caps, you don't need to trade to make really good money investing in stocks if you invest long. caroline: buy-and-hold. many didn't, when it came to the likes of apple and others. how much perseverance and patience did investors need to ride out the promise of, we are investing the business but longer term, you will get your profit? mark: i look for management teams that are regardless. they don't over succeed, but if you look at the history of tech stocks, the biggest winners have almost always been the founder-led, founder-run, founder-lead for multiple years. the founder is involved for two decades. when you get that kind of
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consistency. in investment parlance, there is this saying that "past performance is no indicator of future performance." that is true. but when it comes to management teams and especially product innovation, that is usually a harbinger of the ability of the company. you stick with that stock. you stick with that company for the ups and downs of the markets. i have seen the most successful companies avoid misfits from time to time. caroline: talk about funny moments in the book, some of the particular anecdotes or experiences that you really had to share. mark: one of my worst stock calls, i had to sell on google at the time, its ipo right after the first earnings of the stock. was referred to as having a three-egg omelette on my face. he was right. it was a moment for me to step
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back and think about, where is the real product innovation going on in the sector? leave aside valuation. valuation is super important. but that is the last thing you should do. you should look and find a high-quality asset and think about valuation. one of the mistakes i made early on was focusing on valuation first. find a good asset and then think about entry rather than going the other way. caroline: bring it to the here and now, mark, because it is very hard not to look at valuations, with the run-up in stock that we have. when you see that has less of today suddenly take a nosedive to the tune of 11%, they all have idiosyncratic reasonings around that. is now the good time to still be looking at growth names? mark: i think so. you can still find dislocated stocks. that was one of my lessons in the book, even the highest quality assets can get dislocated. they can trade off 10%, 20%, from time to time. sometimes because of company
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missteps, were sometimes just because the market rose over. amazon had a 30% rule of. when you see that, that is when you should buy. the highest quality internet companies that are look at, which was what i say are most dislocated? first is amazon. it hasn't dramatically corrected, but stocks flatlined for 18 months now. the futurecast potential has grown. is a great stock to buy if you are willing to look out of months or more. second is facebook. highly controversial. great business model and wonderful value proposition. . third, is uber. still relatively new, but the total market is massive and they are one of the leaders in that market. caroline: mark mahaney, always great to have your cake and reflections as well in your new book, "nothing but net." check it out. robinhood pops struggles
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-- robinhood's struggles continue. the company revealed its biggest data breach to date. this is bloomberg. ♪
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caroline: let's talk about hertz, ending the day down more than 90% on its first day of trading. the kind of debut, coming back to the market, striking a turnaround for the company, after a bankruptcy last year. bloomberg's erik schatzker spoke with the interim ceo and the company's chairman about their plans to add tesla's to the fleet. >> we know our corporate travelers went electric vehicles to visit their clients and do business in, we know that our leisure travelers want electric vehicles. it is a great way for them to try electric vehicles without
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committing. specifically, they like tesla's. so a combination of understanding the demand is there, an opportunity to get a an amazing product that allows us to put it in the hands of people who want it, it was an easy decision. >> you have pretty much tripled your money in the space of four months, which is remarkable. there are some skeptics, haters you, might call them haters, they don't believe in your story. they say hertz doesn't have a firm order for ted lasso. they say elon musk -- firm order for teslas. they say he learned is dumping model 3's. what you say to that? >> there is demand for our product. we have a very robust environment for the rental car industry. we are very focused on bringing products into our fleet that we know people want to rent. there is no question they want to rent teslas, no question they
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want higher value vehicles. no question is a big move to electrification. the people who doubt what we are doing, we would simply ask that they stay tuned and watch because this is just the beginning of an effort to put hertz at the center of mobility in a way to serve our oem partners and our customers, to provide a better rental experience in corporate partnership with those parties. >> mark, tom and greg are financial guys. you are a real economy ceo, you ran forward. you know about operation and execution. what are the biggest challenges hertz has to overcome in the transition to what we might call shared mobility? >> first off, i don't look at them as challenges, a look at them as huge opportunities. we are sticking themselves out a very important place in, as tom
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mentioned, the mobility ecosystem whatever mobility 2.0 goes. as we look to lead in electrification, making sure we get overcharging infrastructure in place, that is happening as we speak. and then that first mover advantage of learning how to manage these large electrified fleets, i think is going to give us a very big competitive advantage, not only in the near term to get customers into these vehicles that they want to drive, but in business you have to look around the corner. so as you think about autonomy down the road, those large electrified fleets, i think we will be well-positioned to work with other partners to make that happen. caroline: bloomberg's erik schatzker with the hertz executives. robinhood was hacked. it is not giving exact details of how the heck happened, but in a bit of irony, it was a customer support staffer who
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helped the hacker gained access during a phone call. joining me now is bloomberg sonali basak. you broke this yesterday when it occurred. what now? sonali: it is amazing. 7 million accounts for about one-third of robinhood's users, so the scale is enormous. 300 10 customers they are most worried about, they have names, zip codes and personal details exposed. the most vulnerable group, because once those details are exposed, it could lead them to other issues. because those are things that verify other aspects of their online behavior. but for many of the users, a lot less was exposed. could it have been worse? yes. but it happened for vulnerable areas for robinhood, which has been investing in customer safety. this happened, as you said, through a customer representative. caroline: ironic, because people complained that they didn't even have one! sonali: a lot of users are very nonchalant.
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they say it is par for the course in doing business online. should there be more financial losses for these customers, which have not happened, as we know, to this point, then that would pose a risk to robinhood. caroline: people are always worried about certain parts of their cryptocurrencies being hacked. sonali: exactly, cryptocurrencies is part of this. but also personal information. if they had gotten social security, bank account or debit card numbers which they did not get, it could have been worse. robinhood has reportedly hired a security firm to investigate this. . we don't have all the details on how the breach happened. as we know, through a phone call to a customer service representative, definitely not something that you want to see happen to other brokerages, though, as we know, all of them are vulnerable. caroline: and the shares are only off about 1%. sonali: that is a nonchalantnes s. if you are a user here, you have been hacked somewhere before. but, at the same time, 7 billion
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customers is no small number. caroline: it is not. sonali basak, thank you so much. coming up, what happens to other covid testing sites? when company says it has the answer. that is next. this is bloomberg. ♪
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caroline: this is "bloomberg technology." i am caroline hyde in new york. let's get back to financial markets. $200 million of market cap capitalization last. it is only tuesday. ed ludlow has a breakdown on tesla. [laughter] ed: it is important to take stock of what has happened, quite literally. we are down from last week when tesla hit a record high. a lot.
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going on. elon musk saying -- asking twitter, should i sell 20% of my stake? we have michael burry tweeting that elon musk once to sell his stock because he is under pressure to meet his that obligations. a lot to unpack. let's look at this chart. michael got me thinking about short interest. it is 3.5% of the tesla's flute. you can see the yellow line, being that has less share price. short interest is not there anymore undershorts have not been successful historically when it comes to there. can we rule that out? hard to say. let's bring up a tweet from elon musk about whether or not he should sell 10% of his stake.
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some analysts say that it gives investors an excuse to sell. they may still believe in the long term thesis when it comes to tesla, but there has been a series of negative news, and a lot of people have ridden this stock to the record highs and made a lot of returns in the process. so that could be the thinking. we know that with a tweet, you get an excuse. so a lot of unpack, caroline. caroline: we love ceos that tweet, and the impact it can have. ed ludlow, thank you so much. meanwhile, the end potentially of the global pandemic could be near? dr. fauci: we are on the downward trend. we want to keep going on a downward trend. we don't want to keep wearing masks forever. caroline: that was anthony fauci, director of the national institute of infectious diseases, speaking about covid cases. at least. that is exactly where my next guest is currently focusing, ceo
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of colorhealth. on tuesday the company announced $100 million of series e funding. joining me now is the ceo and cofounder. great to have some time with you. first and foremost, $100 million. what are we going to do with it? guest: let me start by showing what colorhealth actually does. we provide essential and public health care services in the context of where people's lives actually happen. and so over the last couple of years, we have been building and deploying services across the u.s. in very different settings, whether it is schools, universities, workplaces, even community centers like churches. almost 7000 either testing or vaccine sites. to your question about what we are planning on doing with this fundraise and also generally in operation, is we have found that in general, when we are thinking about health equity and access
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to essential health care services, one of the biggest factors in people being able to access basic health care is the simplicity of access in the immediacy of access. that is a big driver, taking essential services and deploying them in the context of people's lives. . i am happy to walk. caroline:. caroline: you through a few examples interested, i know you have been -- othman: i am happy to walk you through a few examples. caroline: think of cvs and pharmacies on the high street they want to give me the flu shot and continue the testing they currently provided when they gave the vaccines. how will you tackle the competitor space? othman: it is such a vast and challenging problem that i don't think there will be a single way to do it. one of the things we have seen time and time again across different industries is that when you bring immediacy, take
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things closer to people, you get an and financial increase in utilization of various services. that is what happened in retail and e-commerce and other services. the way we think about it is, think about schoolchildren, for example. we are running thousands of both testing and vaccine sites in schools. when you think about it you serve the school-based community, the most logical and low-fiction place to do that is schools -- low-friction place to do that is schools. there is a place for centralized health care, which is the traditional model became from, but when you look around the world as well as other industries, the ability to take things into the context of people's lives and their communities, we believe to be one of the biggest things we can do for public health. caroline: being able to get my flu shot here at work is seismic, when you have a busy life and trying to care for my own kids.
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as you look at a 4.6 billion dollar valuation, you are a company that knows how to prevent -- -- you were doing genetic testing originally, a competitor to 23andme. you pivoted, and you pivoted well. i am interested in how your relationship evolves not only with companies and governments, but also insurers. will you be working in lockstep with them? with covid, we didn't have to worry about the insurer, it was the federal government that wanted to put these things into our arms. othman: one of the interesting effects about covid is that it has been a challenging time for all humanity but with these types of crises,, what tends to happen is it creates a mobilization that most people out of a local maximum. the thing that we have seen is that all the key stakeholders in health care and in public health have dramatically changed their approach. we are seeing that with
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innovative department of public health lake in california and massachusetts and other states. some of the largest manufacturers of health care services and supplies have all taken a very big step up to drive access and immediacy of these services. so -- and the other big thing that has changed is our own expectations. through the last couple of years, we have seen that it is possible for us to receive basic services in a way that is more convenient as part of our lives. . i think that expectation is not going to go back. that is one of the biggest shifts i think that has happened in the entire industry, at least for the last 20 years. i think this will be a big shift that, when we look back a decade from now, we will see it is another big threshold moment for how we think about public and population health. caroline: you mention how you have looked at other countries and seen perhaps the more efficiently do things than the
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u.s. are you thinking about internationally expanding as well? othman: pre-covid, we were doing a fair amount of non-us work, but through the covid crisis, there has been such a huge need locally and that has been the driver of our focus, just to serve our community and the country. all of us at color, where we are mostly living. but frankly, the same pattern of using technology to distribute basic building blocks of health care i think is actually something that will apply in a number of other countries. slightly differently, because of the way the finances work will be different, through a single-payer system versus not. but the essence of distribution through a technology-first, high leverage model, will apply quite globally, not just in the u.s.. caroline: color health ceo, othman laraki, thank you for sharing your news and congratulations on the
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fundraise. it is one of the most storied companies in u.s. history. general electric. on tuesday, the company's chairman and ceo took the long-overdue step to break up the company. he told bloomberg earlier about why he made the move now. >> the board and the leadership team are firmly of the view that on three distinct bottoms, these businesses will be more focused, there will be higher, greater level of accountability, we should have more strategic flexibility, and frankly, it will be good for the team as well. the team that we have today certainly the team that we will build over time. we know that today's markets are more mission and purpose-driven. we will stand up two new boards for of directors with domain expertise, and i think we will end up with investor bases focused on this. investors that are probably underinvested in ge today.
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this is the best path for us to unlock and create value going forward. >> i suspect you have learned from bitter experience that there is no such thing as a free lunch, you have to pay something to get anything. there are some benefits that will go through the you think you will see. but are you giving something up in the synergy? general electric did have their benefits, in particular, the research work, such as the research on high-powered wind turbines. are you going to give up some of that? >> the team has heard from me in the last three years, and i will bet on the benefits of focus every day for more than the often illusory benefits that come from synergy. wee enjoy synergies today in certain place, but more and more, we have been running the company on a decentralized basis. not as one ge, not even the four reporting segments, but in the ge that has customers. so in the synergies today, we will work to continue those, of course.
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but the vast majority of the benefits here will come from focus. >> so that is why you are doing it. what about the timing? why not a year or two years ago, or a year from now or two years from now? >> we have had a lot of work to do to take care of the balance sheet. we reduced our debt load by over $75 billion over the last three years. we also needed to strengthen our core operations. . if you look at what we will do this year in terms of our adjusted free cash flow, it should come in around $5 billion. . those two points needed to be in hand before he could entertain a question like this. it certainly helps being increasingly on the other side of the pandemic. but also our customers want ge at its best, focused on them. whether it be our utility customers coming out of cop26 dealing with the energy transition, our air framers and airline customers dealing with post-covid recovery, let alone everything that is happening in precision health care.
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>> what will happen to the general electric name and the logo? who is going to get that? >> i think everybody wants to make sure they hang onto their part of the brand, right? the monogram was recently evaluated at nearly $20 billion of brand value. it means a tremendous amount in each one of these markets. so we don't have a definitive brand plan today. we will work through that in the months to come. but rest assured, -- >> so you are un-scrambling omelettes. a lot to work on. what has been a significant factor for ge is this legacy, health care long-term contracts. where are those going to go? >> over long-term care insurance business will stay with the core corporate entity, which is ge aviation. ge as you know it today at a corporate level will spin
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health care and renewables, we will retain airlines in addition to some other liabilities. caroline: the ge ceo and chair larry culp speaking with my colleague david westin earlier. meanwhile, we will speak to the blue apron ceo about the third quarter results, and what is next for the meal provider, as we, the pandemic. and poshmark, forecasting missed estimates. we will keep. this is bloomberg. ♪ -- we will keep an eye on the story. this is bloomberg. ♪ ?
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caroline: let's talk about shares of blue apron. dropping in trading after the company missed third quarter estimates, forecasting a bigger loss than compared to the year previously. what is the outlook moving forward, and what is the company managing -- how is the company managing with the supply issues we face? let's get more with the ceo, linda findley. thank you for joining us. let's talk first about the future as we look at a loss continues. you hope to gain profitability? how do you see the world evolving in meal kits? and you are branching into delivery now, fully processed food. linda fish so we see this as a standard impact of seasonality with a twist. q3 in the milk industry tends to be the highest cost quarter no matter what because of the fact
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that we are very concerned about food safety in the summer months, so we tend to use extra packaging and extra icing, et cetera. , it is usually our highest cost quarter and that is consistent based on seasonality. what we saw this year was a very interesting spike in contempt travel demand that came in to the business as people were trying to get travel in before school started. . they hadn't been able to travel earlier because of covid. the interesting aspect about this quarter is we demonstrated what we had intended, which is that we have been very focused on building value per customer. revenue per customer, and orders per customer remain extremely high in post-pandemic trends even with the high travel we actually saw this quarter. so we look at that is a very positive sign on going for the business. when we think about the ability to drive customer growth on top of that and then push towards profitability. with the $78 million we just
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closed this past thursday into the business, we will lean into marketing to scale on top of that and focus on growth for the next year, to really drive that customer acquisition number up on top of those key customer metrics that have been so strong. caroline: you are also changing what you can offer to the customer. you have still the ingredients being delivered, the menu options, but you now have heat and eat, prepared single service meals. how is that going, and who are you targeting with that? linda: it is about flexibility. we want to provide high-quality meals to our customers and make sure we are meeting their needs. the core meal kit is still very successful for us -- we have the highest quality ingredients, and great recipes. now we have introduced where you can buy single boxes, a preconfigured box without a subscription, and then we layered heat and eat on to give people options to be able to add
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more food. with heat and eat specifically, customers were looking for the ability to supplement their meal kit boxes with prepared meals for lunches or on the go -- when the kids are going to soccer practice or something and you needed something quick -- but they needed blue apron quality. this has become added to the business as we expand. then we continue to add new products that will open up a new audience as well. caroline: interesting that you talked about how ice can be costly in the summer. all i could think of more supply-chain issues at the moment, the cost of food in particular, going up good how has that affected your business? linda: we have seen cost pressures when it comes to food and logistics. on the food side, what is interesting is that we are a direct supply model. 70% of what we put in a box comes directly from the
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producers. we have great relationships with the suppliers in order to maintain quality and reasonable price we are very focused on continuing to manage those costs without sacrificing anything about the experience in the box. we saw a lot of those cost impacts in q3, as expected, and logistics costs as well. what we have seen at this point based on negotiations with our suppliers is that most of that impact is already finished. the q3 impact is something we can predict and manage going forward, and we expect margin to recover coming into q4 and into 2022. caroline: thank you for being so transparent with us. blue apron president and ceo, linda findley. coming up, online insurance company limited that's is sites -- that's its sights on auto. we will speak to the ceo, daniel schreiber. this is bloomberg. ♪
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caroline: insurance technology co. limited, into the car insurance business. it has focused a data science company focused on auto insurance. it has seen the biggest fall since march following the announcement, even as the company posted strong third-quarter results in beating forecasts for the full year. joining us now is ceo daniel schreiber. what do you make of the reaction to the purchase? daniel: honestly, not that much. we tend to shy away from particular day. as you note, we announced still the results for the quarter and we surprised by exceeding a lot of market expectations. hundred 1% growth in revenue. feeling good about the fundamentals. having launched the car insurance sector last week and overnight
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announcing that acquisition, we think the winds are in front of us. caroline: do you feel like investors are stating a concern, in terms of the price being paid, or how he will be adding to this and biosis of the two businesses? what do you think you need to prove to them? daniel: all the analysts brought out positive coverage. market reaction in terms of the stock price does not reflect what we are hearing from the institutional investor base for the retail investor base. we do see this, oftentimes acquisitions get rewarded, so to speak, with negative returns on the first day as investors digest the news and update their models. i am optimistic. i think tremendous synergies, we are acquiring a company that has roughly $115 million of premium, paying an enterprise value of just 200 million dollars.
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they have $215 million in the bank and 10 years of experience in using data science for car insurance, having monitored billions of miles and let their ai algorithms punch of those. they are one-of-a-kind and have capabilities that are unavailable to our competitors. it puts us in a strong position as we head into this new market space. caroline: i can see it helps certainly with your offerings, being able to offer many types of insurance i can get my renters insurance, my pet insurance, my car insurance. but how will it add to profitability? daniel: you are right. we initial public offering to 16 months ago just as homeowners was added as well as pet and cars, so we are moving at a fast clip. , profitability will benefit from this. we are entering such a huge market and almost unlimited market from where we are standing, $300 billion in the u.s. alone.
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for us, this create tremendous headwinds. it really does help with the unit economics, because the bundling and a cross-selling are the great place where profitability comes from. existing customers were buying pet insurance and increasing their premiums threefold or fourfold. hundreds of percent increase. we have seen the same as we launch life. car is the biggest one of all. in a sense, we have been operating with one hand tied behind our back. we tried selling homeowners insurance, the bulk of our business, without the ability to bundle car insurance. that was a disadvantage. these capabilities unlocks tremendous value for our business. when you look at our
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customers, they are spending over $1 billion on car insurance and they don't have the opportunity to spend it with us. so it has got to be good news from all perspectives. caroline: thank you for talking us through the business model, and indeed, showing of the beautiful artwork behind. [laughter] limited ceo, daniel schreiber, thank you. that does it for this edition of "bloomberg technology." make sure to tune in tomorrow. the doordash ceo will be joining us. this is bloomberg. ♪
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shery: welcome to daybreak asia. i'm shery ahn in new york. sophie: we are counting down to asia's major market opens. haidi: our top stories this hour -- asian investment -- investors look ahead -- evergrande possible against payment in months

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