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tv   Bloomberg Technology  Bloomberg  November 10, 2021 11:00pm-12:00am 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. >> i am emily chang in san
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francisco and this is bloomberg technology. coming up in the next hour, tough times at the house of mouse. disney plus subscribers trailing netlist by a longshot. is disney's trimming service struggling to broaden its appeal after an explosive start? we will discuss. the electric truck maker going public, raising leaven $.9 billion in the biggest ipo. the exclusive combination -- conversation with the company ceo. and doordash after an $8 million deal to buy in then delivery service, vote. let's get a look at the markets with critic group debt. u.s. stocks fell by the most in a month. paint the picture. >> stocks are taking this from
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tech. here is what did not get dragged down. this is chinese adrs, tech heavy. good news in the regulatory backdrop. i want to broaden this out and macro this just a touch and talk about tesla's role in this. tesla, we know this ev space has been driving a lot of gains in the broader index but if you look at a terminal chart of tesla and the current s&p 500 index relative to the s&p 500 before tesla was a part of it, you can see how much is contributed to the current gains. that would explain why part of the stock market is reading right now. let's go to cryptocurrencies. that is where you have seen a lot of gains and volatility. bitcoin was actually one of the sole assets in the green today.
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for crypto stocks, you saw a lot of them get dragged down after coinbase's pretty lackluster earnings. they said they need more volatility. let's get to the micro with ed ludlow. ed: really and's -- revian's ipo chief among them. you can see the trading action we got. we don't normally do this on bloomberg technology. this is a snapshot in time. up toward $120 per share. we lost a little bit of steam toward the end of the day. really interesting to see retail traders buy into the debut of trading. we have doubled the buying orders of what tesla saw. i thought that was astonishing.
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this is a company that will make maybe 1200 vehicles by the end of the year. it has a market capitalization of almost $86 billion. on par with general motors. they built literally millions of vehicles every year. this includes options and restricted stock. that gets nearer to 100 billion. some movers in after-hours trading. disney. down 3.5%. they had been down as much as 5%. top and bottom line miss. it comes down to subscribers coming in. the street is always looking for more after that hot start. profit declining in the film and tv business. much to discuss. shery: disney's call -- emily:
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disney's call is underway right now. we want to hear more about what was being said as well as production. >> we expect our total content expense between eight and $9 million in 2024. we will see the primary driver becoming more local and regional content. >> that call is still happening now. let's get more with the research director. look, big miss in new subscribers for disney plus. also, the number of new subscribers trailing netlist by almost half. -- netflix by almost half. >> did signal that we are going to have this kind of subdued number what -- what were called
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out where the factors that were a result -- they talked about the delta impacts on the supply chain. also, the latin america crunch. they are not structural or long-term factors. that is why we expect that this december quarter, we will see some type of rebound. i think the target they have set for fiscal 2024, there is nothing today that make sense believe they are not going to hit that target. it is a fair comparison when you talk about netflix and the pace they are keeping. if you fast-forward, they need to double their subscriber base from where they are today over the next year.
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that is why we think it is still doable. emily: they said that goal still stands. they have some content coming to disney plus, jungle cruise, other films. the next 100 million subscribers will be a lot tougher than the first and more expensive. >> we expect that to be a lot tougher. that is true for every streamer. in the case of disney plus, remember that they are only in 60 plus countries right now. over the next year, that number should ratchet up significantly. they will be launching in the asia-pacific markets over the next couple of months. there is a lot of runway for streamers.
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in the clip that you played, you heard that the investments are ratcheting up. that will be increasing due to this content. those are all factors that help to draw in the international and local consumers. that is where we see a lot of runway ahead. emily: i want to talk about parks welcoming international guests. will parks be a big part of the rebound story? do you expect that to be slow? >> there is no question that that will be part of the rebound story. we also saw all of the parts were fully open. that is a positive signal. if you have been to the parts, you will see they had a lot of alton safety protocols.
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those measures are not seeing a lot of pushback. they have some new technology features to significantly enhance guest experience. this disney genie app has gotten a lot of rave reviews. during the pandemic they had a lot of time to work on those. while they were away from peak attendance levels, i think they are moving in the right direction. we saw the margin starting to come back. there is definitely some silver lining on the horizon. emily: i always appreciate your perspective on the show. coming up, shares of the electric truck maker, rivian. it is the biggest ipo of the year. we will hear from rj scaringe on
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the challenges ahead. >> the biggest challenge we have is the health of the supply chain. ♪
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>> that is rivian. the largest ipo of the year and the sixth largest ever in the united states. shares rising as much as 47%. they topped ev rival, ludic. -- lucid. r.jl--
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r.j.: we spent years putting this together. it is great to see people with diverse backgrounds putting this together. it is quite emotional, seeing so many passionate faces. this is the first step of many with us becoming a public company and having the opportunity to really accelerate a lot of our focuses in terms of the scale of impact we can have on a product. >> look at the credibility that rivian has been able to build. r.j.: amazon has been a major shareholder and an outstanding partner. this is the collaborative racer job -- relationship we have had with them.
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what you see on the surface is an easy to get in and out of, efficient van. there is a whole host of operations. you don't see is all the infrastructure we are building around that. this is the ecosystem of services we are able to wrap around the vehicle. to be able to work closely with amazon and understand what the needs are, that has been awesome. it has been really exciting. we are just seeing how we can make the environment for the writers and the drivers perfect. >> erased around $12 billion in the public markets. -- you raised around $12 billion in the public markets. what we spend that on -- what
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will you spend that on? >> a fraction of those are electric. over the next 10 to 15 years, we have to electrify that entire fleets. we have to replace well in excess of a billion vehicles. we have to replace them with electric vehicles. the scale of this is in some ways unimaginably large. portfolios of products that address the market in different form factors. we are very focused on that. what we are working on today is our launch products but making sure we can continue scaling the business, building production capacity for future products and developing those products along with the technology is really key. we are striving to help drive and lead this massive transition.
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>> bloomberg reported that you're in talks with the city of fort worth to invest $5 billion in a plant there. what is the update on those fleets in the u.k.? >> we have not made any announcements around a second facility. there is a lot of speculation but these are really important decisions. for us, it comes down to the ability to recruit an outstanding team to come in and help drive and operate these facilities. looking at these locations, these potential locations as well as an active supply chain. what the logistics look like to bring components in. >> on the supply chain, he delayed the start of production more than once. you talked about a shortage of semiconductors. where are the pressure points? semiconductors? rising commodity costs?
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where are the choking points? >> the challenges we have across industries are the health of the supply chain. if you think about building a vehicle, there are around 2000 parts that come from suppliers. it is one of those rare situations where 99.5% is not good enough. about point -- if .5% is not, that creates a constraint for how fast we can ramp up our facility. we are managing what is a small number of suppliers. we are working really close with partners to make sure they can keep up with our ramp. we are working with some great folks on the ground. >> ed ludlow there in an
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exclusive interview with the review and if you. -- cfo. i will talk with tony she about what it all means and how florida -- the flu shortages are impacting the business. that is next, this is bloomberg. g.
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>> a surprise deal from doordash, the food delivery giant buying a finish food delivery startup. it is one of the largest deals
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with a finish company ever. what this means for the company's international growth. >> i am super excited about the volt partnership. -- wolt partnership. we see three amazing things coming together. it is a team that shares our vision for local commerce and they share the way we operate in competing on superior products, caring about taking every ounce of inefficiency out of the process. when you combine that capital efficiency, just how much runway is left in the markets, this
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business will scale for a long time on its own. this partnership really gives us the focus and it exhilarate our ability to operate it -- at multiple geographies. quite they delivered more than food, they deliver cosmetics. looking out into the future, how big of -- how big of a piece of the doordash pipe do you see this being? >> wolt's mission is to make life in cities better. they plan on doing that by bringing every physical business, whether it is the local butcher shop, flower shops, cosmetic stores, convenience stores, restaurants and bringing all of that online. that sits well with the doordash machine. the way we help them compete is
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by helping the doordash app bring demand. we are giving urges the same tools like the storefront to help them build their own digital businesses. an increasing part of the portfolio will come out of restaurants. 12% of our active users are shopping outside of the restaurant category. that is up from single-digit percentages. price there are supply shortages of almost everything around the world. are you seeing prices rise on menus? how did all of this impact doordash? >> one of the things playing out in the macroeconomy is governance around the world made the right decisions to inject money into the system and prevent a global recession.
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some of the consequences are only now playing out. it would not be possible to predict all of the consequences. we are seeing rising prices as you are discussing. impacting grocery stores, convenience stores, other types of retailers. we are seeing some of that happen in the restaurant space. that is tight. labor costs are rising. we are seeing some of those inflationary pressures. what i am hopeful and optimistic about is governments alongside businesses will work to address these things. 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,
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employees say they are still not being enough. what trends are using now? >> we are seeing heavy levels of debt for supply. -- dasher supply. >> what trends are you seeing now? >> 3 million dashers earned this. it goes to speak to how complementary the work is in terms of flex about earnings opportunities. over 90% of them do this over 10 hours per week. there are supplemental earnings opportunities. we are very proud of the earnings they have seen. they have actually gone up.
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>> you disclose to this for the first time this year. they almost doubled from 5 million to 9 million. i am curious how that impacted the basket sizes. >> this has been a big driver of the value on door dash. dashpass membership has grown sequentially 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, and other retailers. we are adding more value to the program and as a result we are
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seeing consumers continuously shot more and more -- shop more and more. >> still to come, we are going to find out about doordash and how they are impacting my next guest. ♪
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emily: welcome back to bric technology. -- bloomberg technology. let's get back to the markets with kriti gupta. what are you watching? kriti: 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 -- we want to keep in mind in 2020 that was a major pandemic
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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. hitting the 68,000 level. they are taking some of these crypto stocks. they have not been able to grasp some of those crypto gains despite some of their and revenue coming from those crypto users. even with the after hours drop. it is the bitcoin minors --
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miners that are ripping this up. this is a spot that has not had a lot of luck this year. this was all the rage in 2020. when we are talking about using digital cards and venmo accounts. all of that has to do with 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. >> thank you. we want to keep the conversation going on the world of fintech and the payment platform that helps companies like doordash process their payments.
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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 continue to see growth. we had 56% growth order over quarter from last year. we are continuing to see non-growth in our non-top five customers. that truly shows the power of our platforms. we are continuing to grow around the world. >> i spoke with the ceo of doordash. i am curious how the supply chain challenges that seem to be crippling networks around the world are trickling down to you and your customers. >> we do see how the supply chain is affecting the market.
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as we continue to grow, whether it is creating the gateway for coin waste -- coinbase cardholders, we are continuing to grow the business. in the space of global supply chain issues. >> you clearly see a future in crypto. talk to us about progress there. >> we purposely build our solutions. we purpose build for crypto. when a card is swiped at the point of sale, it sends a message to coinbase. they look at the cardholder balance in crypto.
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they convert that crypto to an amount that converts to fiat currency. you can't spend crypto at the point of sale. we have created a gateway to make sure that happens. we are seeing great growth. i am a big believer in crypto and a great believer in blockchain. >> you also said that crypto is going to get regulated. when do you see that happening? >> regulation is good. regulation of crypto is good. you can see the conference around everything fintech. a lot of talk around crypto and blockchain.
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compliance and crypto for together really well. they draft off of that. we see a bright future in regards to crypto. also the centralized finance as we begin to grow the business there. there is a lot of growth there. you have clearly seen as dip our toes into cryptocurrency and blockchain. >> thank you so much for stopping by. coming up, a call to action. save the planet. we will speak with john about his new book, speed and scale. as we go to break, let's take a look at shares of bumbles getting up.
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the easing of pandemic restrictions has brought new enthusiasm. this is bloomberg. ♪
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>> as we near the end of cap 26, much has been said about what we need to do to address climate change. one of the most promising trend is the unprecedented shift from fossil fuel to clean energy.
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john has been leading the cleantech movement since 2006 and his new book speed and scale dives into how we can reach net zero global missions by 2050. john joins us now. wonderful to have you back on the show. your daughter inspired you to write this book. what did she say that sparked you to action? >> this all started 15 years ago after we watched al gore's movie. mary was an inconvient -- inconvenient youth. she said dad, i am scared and angry. your generation created this problem. you better fix it. i was speechless. the room went silent. i did not know what to do. partners of mine and i decided to learn more about the climate
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crisis. as you know, we traveled the world, visited labs. we started investing. we invested a billion dollars in some 70 or so ventures. many of them failed. it was really hard. some give up and said we should give up. we stood by those entrepreneurs. this really set a course for others to take action with mean this proteins and better batteries as an example. what i know now is we are on the verge of a catastrophic and --
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catastrophic crisis. >> everyone is talking about reaching net zero by 2050. how will we do it? >> there are six big buckets of opportunity to release 59 gigatons of the mission. those six are to electrify our transportation, cleanup our grid with solar and wind, to fix our food systems, protect nature and to clean up the industrial processes like cement manufacturing. with those five, we can remove 49 of the 59 gigatons of admissions. there is a sixth category where we cleanup the stubborn remaining carbon. for each of those big objectives, we have a handful of key results.
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this whole plan is available for free. it is on the website speed and you can print it out and get some sense of the magnitude of the transformation that we have to go through to pull this off. >> you came before many other venture capitalists. you said many other companies failed. do you feel like you have something to prove their -- there? john:-like we have something to prove every day. the climate has really shifted in that regard. when we started, there was maybe two or $3 billion a year of venture capital invested in cleantech. this year, the estimates are that it will be 10 times that amount. the ceo of blackrock, he said he thinks there will be a thousand
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unicorns in climate tech. the investor sentiment has changed both for venture and institutional investors. there is an institutional investor alliance of some $150 trillion that said they want to see their dollars aligned with net zero enterprises. the corporate sector, the investing sector, the entrepreneurial sector, they are all leading the rest of the world. it is our government and political leaders that are reflecting public opinion. >> you spoke to many business leaders including bill gates, jeff bezos. i want to talk a little bit more about jeff bezos and amazon given their climate footprint. how can the be more of a part of the solution? >> their operations and supply
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chain will be net zero by 2040. then they have reached out to other businesses to sign them up for the climate pledge. easily is impressive to me is jeff bezos has committed $10 million to climate philanthropy and that makes him the largest climate philanthropist in the world. everywhere we turn, we need more urgency. amazon is helping to set the pace. >> what about google? google made some pretty bold targets. >> google was very early and mashing all of the electricity usage with the users. they intend by 2030 to have all of their energy needs select --
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directly supplied by renewables. no offsets or greenwashing, they will use geothermal energy so that every google query you ask about can be powered with renewable energy. they are also building wide range of tools for municipalities to do planning of their transit systems and even for individuals on google maps to choose the most climate from the path to get something done. >> what are your big takeaways from cap 26? is enough being done on a global level? >> when greta thunberg says cut 26 is a lot of blahblahblah. she has a point. i am very impressed by what the cop conference agree to do around nothing admissions.
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also, it is important, cop is not over yet. the u.s. and china did something really worth noting. they issued a memorandum of cooperation which identified five areas in which the u.s. and china will cooperate beyond the current pledges and agreements. i think the current plans do not get us far enough. but that should make us hopeful. >> hopefully there will be less blah blah blah. 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 tsunami. the first of which was microchip and pc. the second of which was the
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internet and the third of which was mobile and cloud. we have entered the fourth wave. my belief is it is a conversation of the per invasive leave and economic imperative of the climate crisis. i think climate will be the largest economic opportunity in the 21st century and technology will play a very important role. >> wonderful to have you john. thank you. coming up, ravines big ipo. -- rivian's ipo. and the disney's earnings call has wrapped. sherry news about what audiences can expect to see soon on disney plus. this is bloomberg. >> eternals has reached or than
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151 million dollars at the goebel box office in less than a week. they will come to the service after their exclusive theatrical runs. ♪
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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.
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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 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.
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what is it that 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 -- $88 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. even though that is a small amount, that reflected in the early days of trading where stocks were up and it touched the 100 billion club briefly. what is interesting is also that at the year end, the ipo's had not done as well as the indexes. we see a lot of mutual funds.
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portfolio managers trying to capture in the fourth quarter of the year. all of that, we saw a very interesting debut for rivian today. 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? to tesla? >> it is interesting going into this listing and you see the drama with price action, at one points shares were hitting $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 differentiation that
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rivian has over tesla. it has very visible revenue. the street can look at that and say we see with the pathway forward is then. 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 -- learned 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. on top of the investors such as amazon and ford, people like blackstone are also getting a big chunk of the deal. the deal itself looks like it is an 11 billion
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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. there is a concern from wall street that this truck costs and $70,000 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, their vehicles are slightly more affordable. there is some concern in the marketplace. rivian has a ceiling over what you can sell each year. >> lots to continue to watch. thank you both. that does it for this issue of bloomberg technology. make sure you join us tomorrow where we will be joined by the bumble ceo. i am emily chang. this is bloomberg.
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