tv Bloomberg Technology Bloomberg November 10, 2021 5:00pm-6:00pm EST
after an explosive start? we will discuss. no stopping for vivian, the drugmaker goes public -- truck maker goes public. our exclusive conversation with the company's ceo this hour. she was of doordash hit a peak. visio will tell us how he expects us to hyper skill growth. let's get it look at markets. u.s. stocks fell the most in a month. >> talks taking a breather and it comes down to tech leading the charge lower. a lot of it has to do with big tech. over into semiconductors as well, down 2.8%, software stocks taking part of the blow. here is what did not get dragged down, china's adr's, good news
in the regular tory vectra. i want to broaden this out and talk about the s&p 500 and tesla's role in it in particular. we know the ev space has been driving broader gains, but if you look at tesla and the current s&p 500 index relative to the s&p 500 before tesla wasn't part of it you can see how much it has contributed to current gains, which would explain why part of the stock market's reader as a lot to do the search in electric vehicle pricing. let's go from electric vehicles to cryptocurrency, a lot of volatility. bitcoin was actually one of the sole assets in the green. today that did not translate over, you saw a lot of them get dragged down. that is the macro picture.
let's get to the micro. >> electric vehicle makers, the story of the day and rivian's ipo chief among them. shares open at $106 a share. we do not normally do this. this is a snapshot in time absorb -- up toward $120 a share. expecting to see retail traders buy in to rivian's trading. more than doubled the by orders -- buy orders tesla saw. this is a company that will make 1200 vehicles by the end of the year, it has a market capitalization of almost $86
billion, on par with general motors. that is the market cap. you think about it on a fully diluted basis including options and restricted stock that is nearly $100 billion. this is a hot one to watch. disney, down 3.5%, and been done as much as 5%, top and bottom line miss. subscribers coming in at 2.1 million added in the fourth quarter but the stream always looking for -- much to discuss. emily: thanks so much. here with the ceo of disney i do say about disney+ production? . >> we expect our total content expense to be between $8 million
and $9 billion in fiscal 24 and we will be increasing that investment further with the primary driver being more local and regional content. emily: let's get more on disney results with an analyst who has a $220 target. the number of new subscribers this quarter trailing netflix by almost half. what do you make of that. >> coming into this quarter they did signal we would have this subdued number but they underestimated the extent. they talk about the delta variant impact on supply chain
and the delayed start of latin america plus. they are not structural or long-term factors, which is why we expect this quarter we are going to see some type of rebound. the target for fiscal 2024 needs to be 245. comparatively when we talk about netflix and the pace, it took netflix almost 10 years to get to the first 100 million. if you password they need to double their subscriber base to at that target -- hit that target. emily: that goal still stands and they are going to get there. they have new content coming to
disney+, this fall, jungle crews , i wonder if the next 100 million subscribers will be tougher than the first and more expensive. >> we expect that to be tougher. in the case of disney+ they are only in 60 plus countries right now and over the next year that number should ratchet up significantly. as we look out there is a lot of runway for streamers. the investments ratcheting off [indiscernible] and that number will be increasing largely due to regional and local content
and that will draw in local, international consumers. emily: i want to talk about parks, many parts opening to international guests. it is parts going to be a part of the regan story or do expected to continue to be sloped? >> there is no question it will be a part of the rebound story. quite a relief for the first time in a while. all of the parks, this was the first quarter all of the parks were open, a positive signal but if you have been in the parks lately they have a lot of health and safety protocols. they have got new technology features not to significantly enhance the guest experience. this disney janie -- genie app
has gotten a lot of rave reviews. while they are all from pre-pandemic levels, we saw the margin starting to come back. it will take time to get there but there is silver lining on the horizon. emily: always appreciate your perspective on the show. the electric drugmaker rivian going public hitting $12 billion. we will hear exclusively from the ceo about what is next in the challenges on the road ahead. that is next. this is bloomberg. >> i would say the biggest challenge we have broadly across industries is the health of the supply chain.
putting this together. it is exciting to see such a diverse group of people with diverse grounds and it was coming together to create these products and standing it today and looking out at the team as we ring the bell was quite emotional. seeing so many positive faces. we are excited and this is the first step of many in becoming a public company and having an opportunity to accelerate in terms of scaling impact we can have with our products and what we are building. >> how critical has amazon been to the various valuations the company has been assigned along the way? the credibility rivian has been able to build? >> amazon has an outstanding partner. they are a major shareholder, but aside from that and i would say it much more important to that is the collaborative relationship we have with them and the vehicles we are
developing on the commercial side. what you see on the first -- surface is a friendly, easy to get out of, very efficient optimized and has a host of applications, but what you do not see as all of the infrastructure we are building around that, our platform, the ecosystem of services wrapped around the vehicle to make it efficient to run in to work closely with amazon and understanding with the needs are for us to build that system has just been also -- awesome. how do we find opportunities for efficiency but how do we make the environment for the drivers and operators comfortable and something they want to come into. >> you have raised $10.5 billion in the private market, $12 billion from the public market. what are you going to spend it on? >> if you look at the scale of
what has to happen as an industry, today there are well over one billion vehicles on the planet. a fraction of those are electric and over the next 10 to 15 years we have to electrify the entire fleet. we have to place in excess of a billion vehicles with electric vehicles so the scale of this is unimaginably large and it will require multiple companies to be building multiple products. what folios or factors that capture the market in different segments, and for us we are focused on that. making sure we have the capital to continue to scale the business, capacity for future products, continuing development with future products along with technology and we are striving to help drive and lead this massive transition.
>> bloomberg has reported you are in talks with the city of fort worth to invest $5 billion in a plant there. you are looking for potential plant site in europe. >> we have not seen announcements on second or third facilities. these are really important decisions, and for us it comes down to looking at the ability to recruit an outstanding team to drive and operate these facilities. looking at a full account in each of these locations as well as access to supply chain. where our suppliers are and what the logistics look like to bring components in. >> on the supply chain you delayed the start of production on the l1t more than once. where are the pressure points? we are using chokepoints?
-- you seeing chokepoints? >> the biggest challenge we have broadly across industries is the health of the supply chain. if you think about building a vehicle like this, there are around 2000 parts that come from suppliers, and this is one of those rare situations where 99.5% is not good enough. that creates a constraint for how fast we can ramp the facility. that is a world we are living in along with many others managing a small number of suppliers but working very closely, partnering with those organizations to make sure they can keep up. that is a major focus of our team and we are fortunate to have folks working on the ground with suppliers. emily: our very own ed ludlow in
of a finland base company ever according to bloomberg. i spoke earlier with the doordash ceo about what this means for international growth. >> i am super excited about the partnership. for us it represents our long-term investment in building a global business. in revolt -- volt we see three amazing things. it is a team that shares our vision for transforming global commerce and they also compete on building superior products, caring about taking every ounce of inefficiency out of the system and building something for all stakeholders. it has an incredible runway for growth. they are at 2.5 billion dollars. when you combine capital efficiency with how much runway is left in the market, this
business will scale for a long time on its own. this partnership gives us the intentional focus and accelerates our ability to operate across multiple geographies in a hyper-local context. emily: they deliver more than food. they deliver cosmetics and electronics. how big a piece of the doordash by ducey nonfood delivery being? >> division was always to transform all of local commerce. wolt's mission is to make life in cities better and they plan on doing that by carrying every local business whether it is the local butcher, convenience stores, certainly restaurants and bring all of that online, and that fits well with the doordash mission which is to
transform physical businesses and help them compete. by building the largest local commerce supply form where we are getting companies help to build their own businesses. an increasing part of the portfolio will come out of restaurants. if you saw in the third order results we announce yesterday 12% of our monthly active users are shopping out of the restaurant category. emily: there are supply shortages of almost everything around the world, including food. are you seeing prices rise on menus, and how is all of this impacting doordash? >> one of the things playing out now in the macroeconomy is well governments around the world made the right decision to inject money into the system and prevent a global recession in
the middle of a global pandemic some of the consequences now are playing out. it was impossible to predict all of the consequences that would have happen from all of those actions, but we are seeing rising prices. that is happening with supply chains impacting grocery stores, convenience stores, other types of retailers. we are seeing that happen in the restaurant space as labor is tight and labor costs are rising . we are seeing inflationary pressures. what i am hopeful and optimistic about is governments alongside with business will work together and address these issues. we did the right thing preventing a global recession. now we have to confront these consequences and mitigate these trade-offs. emily: we are seeing supply issues continue to challenge
uber and lyft and often time when i do an interview with you, employees say they are still not being enough. what trends are using now? >> we are seeing heavy levels of debt for supply. -- dasher supply. it goes to speak about just how complementary in terms of flexible learning opportunities. the vast majority of dashers dash fewer than 10 hours a week because the vast majority of them have full-time jobs so they see these as supplemental earnings opportunities. not only billions of dollars in the third quarter but they have gone up 80% year on year -- 30%
year on year. emily: you disclosed -- past -- dash pass subscribers and i'm curious out that is impacting order volume and basket sizes. >> that has been a big driver of the value on doordash. we shared in our shareholder letter membership as grown every quarter. it has grown year on year and it has really shown especially as doordash is getting back in terms of greater or affordability, it is also giving value to customers as we are allowing members to order from more categories such as convenience, grocery, liquor,
emily: welcome back to bric technology. -- bloomberg technology. what are you watching? >> let's start off with streaming wars, you had major companies rivaling each other to try to get to subscribers. year-to-date a lot of the streaming services are actually lower except for netflix. tomorrow this chart will be even harder to look at, something
went to keep in mind given in 2020 that was a major pandemic trade because a lot of people were at home watching movies, watching shows. this year not so much. i want to go from streaming wars into cryptocurrency. i want to compare this to bitcoin's monster rally, 121% year to date getting the 6000 level. making some of those crypto stocks the exception, except for robinhood which has not been able to grasp crypto gains, coinbase, the after hours drop siding that lack of -- siting that lack of volatility. it is the miners earning the most.
i think you get my point, i want to switch from cryptocurrencies to payment firms. this is another spot that has not and having a ton of luck this year. this was all the rage in 2020 when we were talking about using digital cards, a lot of that as to do with it being contactless. you start to see companies like paypal underperform year to date. the question is how do they keep diversifying, working with other payment companies to keep that momentum going and perhaps pull them out of this tough time. emily: went to keep the conversation going on the world of fintech and the payment platform that helps companies like doordash process their payments reported its third kurd -- third-quarter revenue, stock up after hours. the ceo with us now. what was the most significant
driver of today's results? >> thanks for having me, good to see you again. we had 56% growth order over quarter from last year. we sought massive growth in find out--- buy now- pay later. it truly shows the power of our platform. where are customers like square are using service area and we are continuing to grow aro the world. emily: i just spoke with one of their customers, the ceo of doordash. i'm curious how the supply chain challenges are trickling down to you and your customers? >> we do seem -- see how the supply chain is affecting the
market but people still need to pay for things whether it is consumers paying merchants, consumers paying consumers. as you continue to grow, whether it is creating the gateway for cardholder suspending the point-of-sale we are continuing to grow the business in the space of global supply chain issues. emily: you clearly see a future in crypto. talk to us about progress there and what the next steps for marq eta is? >> we purpose built for solutions whether it is crypto, shakepay. we create the gateway. when a card is swiped at the point-of-sale we send a message to coinbase. they look at a cardholder's
balance in crypto, then convert that crypto to an amount, fiat currency at the point-of-sale. we have created a gateway to make sure that happens, so we are seeing great growth there. i am a big believer in crypto, blockchain, we will see all that were to come. emily: you said matter-of-factly crypto is going to get regulated. what will be the impact on marq eta and markets across the world? >> regulation is good. regulation of crypto is good. i was just at the preeminent conference of everything fintech, a lot of talk around decentralized finance and crypto and blockchain, compliance,
compliance and crypto fit together pretty well. that goes into a place of trust and verify. we see a bright future with regards to crypto, decentralized finance as we begin to grow the business. visa and mastercard have interconnected the world for companies that want to accept cards. there is a lot of growth there. emily: we will keep watching, david gardner, founder and ceo of marqeta. coming up, a call to action to save the planet. we will speak to the chair about his new book and what he believes is the path out of the climate crisis. let's take a look at shares of bumble, raising its revenue
decisions from fossil fuel to clean energy. venture capitalists john doerr as been leading the movement since 2006 and his new book shows how we can -- wonderful to have you back on the show. your daughter inspired you to write this book. what did you say that spark you direction? >> the started 15 years ago after we watched al gore's movie. mary was an inconvenient youth. later that evening we went around and said how do people react to it. mary said to me, dad, i am scared and angry. your generation created this problem. you better fix it. i was speechless. the room went silent. partners of mine and i decided
to learn more about the climate crisis, and as you know we traveled the world, visited labs, we went to the amazon, china. we started investing and over the course of three funds invested billion dollars in some 70 or so ventures. many of them failed, it was hard, and in fact, some gave up. we stood by those entrepreneurs, and today their shares are $3 billion, more than the money companies like beyond meat have set the course to drive others to take action without meatless proteins and better batteries as an example. what i know now is it is very clear, we are on the verge of a catastrophic and irreversible climate crisis and we have got to act and more than anything else what we need is a plan.
emily: let's talk about that plan. you have one. everyone talking about reaching zero by 2050, hourly going to do it? >> it turns out there are six big buckets of opportunity to reduce 59 gigatons of emissions to net zero by 2050, and the six are simply to electrify our transportation, cleanup our grid with solar and wind, fix our food systems, protect nature, and cleanup industrial processes like cement and manufacturing. with those five we can remove 49 of the 59 gigatons, and there is a sixth category where we cleanup the stubborn remaining carbon. for each of those objectives we have a handful of key results.
this plan is available for free. it is on the website, so you can download it, printed out and get some sense of the transformation we have got to go through the pull this off. emily: you came to cleantech many years before other venture capitalists, and many companies fail. at this point do you still feel you have something to prove their? >> we have something to prove every day, but the climate, no pun intended, as shifted in that regard. when we started there was maybe $2 billion, $3 billion a year interested in cleantech. this year it will be 10 times that amount. the ceo of blackrock said he
thinks there will be 1000 unicorns in climate tech. the investor sentiment as changed both for venture and also for institutional investors. there is an alliance of $150 trillion of portfolio capital that says they want to see their investments aligned with zero. they are leading the rest of the world. it is our governments and political leaders reflecting public opinion. emily: you spoke with leaders, bill gates, jeff bezos, i went to talk more about jeff bezos and amazon given their climate footprint. how can they be more a part of the solution? >> they are a major part of the
solution already. they pledged their operations, their supply chain will be net zero by 2040 10 years ahead of the paris school, and they have reached out to other businesses to sign them up for the climate pledge. easily more impressive to me is that jeff bezos has committed $10 billion to climate philanthropy, and that makes him the largest climate philanthropist in the world. everywhere we turn we need more ambitious and urgency but amazon is helping to set the pace. emily: what about google? google has made both targets. >> google was very early in matching all of its electricity usage with the purchase of renewables. and they have done the boldest thing of all, and that is to say they intend by 2032 have all of their energy needs directly
supplied by renewables, no offsets, no greenwashing. they will use solar thermal, geothermal energy so every google query you ask about will be powered with renewable energy. they are also building tools for municipalities to do of their transit systems and for individuals in google maps to choose the most climate friendly path to get something done. emily: what are your big takeaways from cap 26? -- cop 26? are you seeing more business as usual? >> when greta thunberg says cop 26 is a lot of blah, she is right. pledges are fine but we need action. i am surprised by what the conference agreed to do around
methane emissions. cop is not over yet. just today the u.s. and china did something worth noting, they issued a memorandum of cooperation, which identified five areas in which u.s. and china are going to cooperate beyond what is in the current pledges and agreements. the current plans do not get us far enough but they should make us hopeful. emily: hopefully there will be less blah, as we say. 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. >> i believe there are huge tsunamis, the first of which was the microchip in the pc, the
second of which was the internet , the third of which was mobile and cloud. we have entered the fourth wave, and my belief is it is a combination of the pervasive reach of ai technology in the economic imperative. with the climate crisis. climate will be the largest economic opportunity of the 21st-century and technology will play an important role. emily: i with his new book speed and skill, wonderful to have you. thank you for joining us. vivian -- rivian's ipo, we dived into the future of the electric market. the disney's earnings call has wrapped, the ceo charring is about what the audience can expect to see soon on disney+. this is bloomberg. ♪ >> the internals has raised more
emily: a story we continue to watch, zillow has agreed to sell about 2 billion properties from the home selling business is winning them. partners will buy these homes. they own 70 million rental homes across the state. that makes it the second largest rental at landlord. i went to wrap this up by taking a final look at rivian's debut.
let's bring back ed ludlow. obviously, a huge scoop for you, exclusive interview with the ceo today. what is your take on today? his very first interview before they had pictures of anything they were working on it was on here. >> i remember in 2018 when they said we have this skateboard design. they said, just getting -- just kidding it is a pickup truck. investors have been following this over the course of many years to the private market. they attracted $10.5 billion from big wall street names, it was not just amazon, ford, and as investors came along for the ride. this ought many of them commit to the ipo. what was so crazy was the retail investor interest as well.
what is it that really and -- rivian does? americans love pickups. emily: what is the takeaway today? >> it is interesting looking at the relationship of ford because at the end of the day rivian's valuation was $8 billion, which makes it bigger than ford. retail investors where the really interesting component. 0.4% was allocated to retail investors and retail investors love to chase deals. that reflected in the early days of trading where stocks were up and it touched the 100 billion club briefly. overall this year ipo's i've not
done as well as indexes. we see portfolio managers trying to capture in the fourth quarter of the year. we saw an interesting day of debuts. emily: love this video of his children ringing the bell. the company as a bigger market cap event gm and ford, though well behind tesla. could it shape up to be a bigger competitor? >> it is interesting going into this listing and you see the drama with price action, at one point she was sitting $120. these are big numbers for a company that has made very few vehicles. investors talk about the amazon effect, it is not just amazon is an investor. they have this order for 100,000 electric delivery vans and it is
a point of deviation rivian has over tesla and also very visible -- we see with the pathway is ford. emily: talk about ford, amazon, big investors. what does that say about the future of the company? >> it is important because automakers rely on contracts and if i learn anything this week is if you announce anything like hertz with tesla it will do something to your stock. it will be interesting to see when those drugs get delivered. i will point out the deal had a very heavy allegation toward cornerstone investors. people like blackstone are getting a big share of the deal. the deal itself is an 11 billion deal but it is much smaller and
that is why the demand is much more intense. emily: how do you expect demand to evolve? >> this is a supply constraint business. demand will exceed their ability to supply for years and years. this truck cost $70,000, and even though it fits the category of what people want to buy there is only so much willing to buy. if you look at tesla there is a bigger mess market appeal. perhaps rivian has a ceiling on what a consult each year. emily: lots to continue to watch, thank you both, and that does it for this issue of bloomberg technology. make sure you join us tomorrow
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