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tv   Bloomberg Technology  Bloomberg  August 13, 2021 5:00pm-6:00pm EDT

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announcer: from the heart of where innovation, money, and power collide, in silicon valley and beyond, this "bloomberg technology" with emily chang. ♪ emily: i am emily chang. this is "bloomberg technology." i will speak with our guest
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about the growing appetite for take and plans for expansion. plus, 23 and me reports earnings . fintech front and center. how customers are looking for new ways to manage their money. i will sit down with one ceo about the company outlook and move into crypto. we will get to that soon. first, a recap with kriti gupta in new york. kriti: we ended the week at record highs. the macro outlook is cloudy. this is the growth versus value trade. growth outperforming a little bit. it shows the momentum is down a little bit.
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that as the curve gets flatter. i want to show you what this looks like on an intraday basis. the s&p 500 and the green, nasdaq underperforming, but 10 year yields down eight basis points. some money going into treasuries. not a lot of money going into big tech. i suspect it is no longer one big trade. you have semiconductors, bitcoin sending these messages. bitcoin was higher on the day, and lower now. semiconductor sector off. chinese adrs down. those biotechs flat. people looking at the micro story. i told you the macro. let's get to ed ludlow.
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ed: friday the 13 may be bad luck for some parts of the market. some gains. i want to point out that in november and march of last year, we saw outsized gains, but the market was muted today. one area had better luck, electric vehicle stocks. so many stories around that sector. you see weakness in nicola. lordstown down 6.5%. fisker down. all that felt by tesla. a pocket of wheat is. i want to talk about -- a pocket of weakness. i want to talk about disney. strong earnings. bullish outlook. don't worry about delta very. we opened up 4.5% friday. -- delta variant. we opened up 4.5 percent
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friday. down a modest 1%. you wonder whether the market is taking a break or looking at disney thinking are the numbers as good as they look. emily: maybe it is because it is friday the 13th. hopefully we can get through the show. thank you. apple announcing some changes friday in response to an uproar over efforts to combat child pornography. the iphone maker adding a feature that will cross-reference a database of known sexually explicit images of children with those in an image library. if they match up, they will conduct a review and ultimately report the use of the law enforcement. apple said it's database will have an independent auditor, this after complaints from privacy advocates, some consumers, and apple employees. joining us for this story, mark gurman. what changes did they address to address this uproar.
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mark: they provided the threshold of how many images you would need for the alarm bells to ring. it is now 30, about 30, and it is variable, so that may change by the time the feature launches, or change elsewhere in the future. they will have multiple sources for the database. the main source originally was going to be an organization, a u.s.-based designed to combat abuse and explicit images related to children. now there will be multiple sources for the database. apple is not saying who else are where else they will be stationed, under which government, but saying there will be more than just the one. the third thing they are saying is they will have an independent auditor to verify the contents of its database, in response to concerns that people believe a
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government or organizations may place non-job-related images in the database to flag the devices of users, depending on the country they live in. emily: i spoke with folks who said from double enforcement side said they are thrilled with the changes, but given the opposition, will apple move forward with all of this? mark: yes. i think they will ship these new features. it is a matter of whether there will be changes to implementation. one idea is apple breaking up the cadence of the releases. they announced three features, this icloud photo library feature, a feature in messages that uses on device ai to scan incoming and outgoing photos through the messages app for kids 13 and under for explicit material, and announce new components of siri related to child abuse images and finding resources, so it's possible
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instead of releasing all three simultaneously, they will break up the roadmap to introduce new features on its own. in our research, apple is not the only company doing this. google, microsoft, adobe, facebook and others have been doing this for a number of years. for apple, this is not the first time. they have been doing this for icloud mail since june 2019. emily: there is still a lot of confusion. if i take a photograph of a rash on my child to send to a doctor, is that the kind of thing that will get flagged? mark: let me break this down. in that instance, and i hate to say this, but this is the actuality, the only way that would be flagged is if that image of your child in the rash ends up in the child pornography or child abuse database. these are looking for exact matches. there is probably a 0% chance that would happen to most parents.
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not only would it have to happen , but it would have to happen then more times than the threshold, so in your instance, 30 times. i would say there is less than 0% chance of that happening. emily: apple is warning retail employees to be prepared for questions about this from customers. what are they telling these employees and how are they telling these employees to respond? mark: apple knows the retail folks are the front-line, and they expect those employees to get questions about this, so they have an faq to better prepare them for the influx of concerns. emily: we appreciate your reporting on this. thank you for keeping us posted. coming up, the ceo of tesla in germany as the car company looks to gain ground in the push in europe for ev. there is elon musk. all the details are next. customers ordered more on doordash more than before.
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i will talk with the ceo as the delta variant forces more restrictions around the world. this is bloomberg. ♪ is bloomberg. ♪
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>> hopefully this factory here can serve as an inspiration to people in germany and throughout europe for excitement about the future. we have to be excited about the future. we have to do things that make us want to live. it cannot always be about problems every day. emily: elon musk in germany as he visited the gigafactory. he hopes the first cars will
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roll out berlin in october. that is pending regulatory approval. he was joined by the front runner to succeed as germany's chancellor. airbnb will allow house and guests to sue the company over claims of sexual assault and harassment in its listings. it lists a mandatory arbitration clause that has been buried in terms of services for a decade. it comes after investigations of violent crimes, where in some instances the company paid settlements to avoid court filings. lordstown motors, shares falling after warning about the ability to get its pickup truck to market. it said it does not have sufficient cash to fund commercial-scale production. lordstown recently went public via spac. amazon studios is moving production of its lord of the rings television series out of
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new zealand into the u.k., aligning with the strategy of investing in production across the u.k. lord of the rings is one of the most expensive tv series ever. the first season cost for hundred $55 million. -- $455 million. coming up, doordash ceo and the demand for food delivery, and talks to buy instacart. what happened? i will ask. this is bloomberg. ♪
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emily: ebay giving a lackluster
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forecast for the quarter, suggesting growth could slow as people get vaccinated and return to pre-pandemic habits like traveling and dining out. the president and ceo told bloomberg that he is competent about the track of the business. take a listen. >> we are on track. if we look at q2, a strong quarter, revenue up 11%, coming in ahead of all expectations, which is great. the back half of the year is on plan. q2 was a great quarter. also, we sold one business, and in total, that is $20 billion of value. the business is doing well in great return for shareholders. >> what is the identity here? you have only been there a little bit of time relative to
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other ceos, but you made some moves and interesting divestitures. what is the general identity you are pushing ebay towards? >> we are leaning into this business, a $500 billion opportunity that is massive. take sneakers. we invested in that business. we are now authenticating sneakers in both directions. we have authenticated close to one million items. we added watches. we are changing the level of trust on the platform. we are appealing to a younger demographic. that sneaker buyer tends to be gen z or millennial. we are making sure we have the best experiences across ebay. it is working. those categories are growing double digits despite the huge comps from last year. emily: that is the ebay ceo. the appetite for take-out only
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continues to grow. doordash reported record orders for the second quarter, topping 345 million. they cautioned that consumer behavior still remains uncertain. joining me to discuss these trends in our weekly segment is the doordash ceo tony xu. great to have you with us. how does this happen as restaurants are reopening? tony: it is great to be with you. what you saw are two types of dining behavior. you can dine in while you also dine out. this sticky behavior that we have seen so far in 2021, even though we are largely in a recovery, although i recognize the pandemic is not entirely behind us, compared to 2020, heading into the pandemic, you are still saying most of that
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behavior stick. emily: talk to us about the headwinds. shares are down. you forecasted a potential slowing ahead. with the delta variant picking up, i would think that means doordash speeds up. why would it slow down? tony: a lot of the pandemic sharpness in behavior has been more muted as we have figured out new ways to cope and deal with how to live in this environment. that is why i don't think you will see any large changes in behavior as a result of the pandemic, so instead what you see in our guidance is the seasonality that is reflected. this happening every year that doordash has been around. certainly wasn't 2020. in -- certainly it was in 2020. you see in the summer months
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that people are vacationing again. people are eating out again and ordering less from home, so that seasonality is taken into our guidance. emily: the big story is doordash was in talks to buy instacart, $40 billion to $50 billion. that did not happen. why did you not do that? tony: look. i'm not here to comment on rumors and speculation. the bar for anything m&a has been high. when we look for opportunities in this area, we are looking for businesses to help us accelerate into an attractive market, geography or of business, businesses that can help -- new business, businesses that increase our profit and give us extra management bandwidth. it is all about execution.
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unless it is accretive, you can't achieve all the goals with something behind m&a. what i would say is that is how we view the lens of anything m&a . emily: and perhaps the opportunity to reach retailers that might not be happy with instacart, especially in non-restaurant categories? tony: i think it is early in all of these categories. if you take our core business, where we are the leading platform in the u.s. we are, still single digit percentages of the u.s. restaurant industry. they are already at pre-covid levels, which is exciting to see. in these new categories, we are at an earlier inflection point. that means customers are not satisfied with the products available to bring them online, and that is why they are not
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changing preferences from off-line behavior. i think there will be a long runway where there will be a lot of invention. what we are doing at doordash with groceries is solving that middle of the week run for customers, helping you get the items you consumed the items you consumed most often, like milk, bread, eggs, cereal replenished in under 30 minutes. that way you can start building a relationship in this long runway for invention in this massive category. emily: you have been focused on organic growth up to this point, but also in talks to buy a stake in the german grocery app. is europe a different game because of entrance competition, and how big might that be? tony: without commenting on rumors or speculation, i would say you are right about the premise. historically, at doordash, we
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have built our way to getting where we are. that does not mean we have something against m&a. it just means the bar is high. these opportunities really have to meet three thresholds at the same time, which helps us enter new categories in business, increases profit potential in the long run, and adds to the management bandwidth of our team. that is how we view all of these opportunities. emily: i am curious how your thoughts are evolving on m&a. how does it play into the deals you explore and whether you do them or not? tony: when i look at where our businesses today, a single percentage point of core business at restaurants, and as you add these other categories, we are a tiny fraction of the amount of sales being generated online spanning what we do
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across the board. we are just a drop in the bucket from the lens. again, when we look at m&a opportunities, it is much less how an industry structures, because we are so early, it is more about the criteria i laid out and comparing that against where we are in our own trajectory in our natural build. emily: shares dropped after he reported, but closed in the green today. i'm curious about the competition with uber as the continues to double down. they are seeing more customers from the ridesharing app. do you have any concerns about giving up share to in that way? tony: i can only speak to what we have seen, and we have seen we have continued to gain market share despite competitive actions. we gained three points of share
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in the quarter, 12 points over the past 12 months, so in terms of what we are doing for our customers, it seems like it is responding in the marketplace. emily: ok. now, yesterday on the call you got fired up about commission caps, calling them violently unconstitutional. if other cities at that, how long does that cost continue to drag? tony: mostly what we have seen working with cities has been a productive relationship. when it comes to these commission caps and related ordinances, most are lifting, and recognition restaurant reservations are at 90% plus, covid levels. the restaurants are seeing the highest sales ever as industry in aggregate, despite the fact
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we are not fully recovered. i think it has been largely productive, but there are some exceptions, literally countable on one hand, where some cities take even the words of their own mayors are overstepping in terms of their actions and harming the audiences they are trying to help. emily: tony xu, doordash cofounder and ceo. appreciate you stopping by. still ahead, big interviews. the ceo of 23 and me about the role the company wants to play in your health, coming up. this is bloomberg. ♪ p. this is bloomberg. ♪
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emily: welcome back to "bloomberg technology." i am emily chang in san francisco. venture capital continues to pour into startups. i want to bring in ed ludlow on how much funding we are actually seeing. ed: is there something in the water? did a big gust of wind come through and wake up all the venture capitalists? we have seen three deals, credit the most notable, $700 million.
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we know about that. carta raising $500 million. and divvy. when you look at what happens to valuations, bring those up. reddit is $10 billion. carta at 7.4 billion. divvy over $2 billion. this takes the equity investments $273.3 billion today. it is a global story. if we look at the funds raised in the second quarter 2021, $166.2 billion, venture capital and startups. you can seat whatever is going on with the pandemic, venture
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capitalists are not deterred. go to the second quarter year ago, 2020. we have more than doubled the money going into startups and more than pre-pandemic levels as well, so those of the numbers. that is what is happening. i don't know why. maybe they are bullish about the economy coming out of the pandemic, but there is certainly activity. emily: thanks so much. for more, let's dig into why venture capital has suddenly woken up and how this is evolving. i want to bring in our deals reporter. first of all, fundraising happened earlier, and it seems to be a bunch got reported at the same time, or is there something in the water? reporter: sure. it has been active for quite some time. it seems day after day this last year there is a new unicorn, maybe two unicorns a day.
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things are growing really fast. a lot of startups are seeing valuations quadruple year-over-year. it is due to different factors. there is a lot of money in the ecosystem, so that competition is driving up prices, because they have had good returns in the past few years, willing to put more money into new funds, so there is capital to deploy, and it has gotten competitive with these big firms putting in money, so sometimes founders are taking the highest evaluation they can get. on the stock market, a lot of tech stocks have done well. those market cash are used to justify these valuations, using skyhigh multiples to say if that company gets a really high multiple in the same sector, then we should valued this
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company at a similar multiple. emily: is this a trend that will continue or pick up, especially as we go into september when everybody gets back from summer vacation? katie: sure. there is mixed sentiment. there is still a lot of capital to deploy, so investors will have to deploy this money to get returns for their investors. i think funding rounds will continue for a while. whether they will have the same multiples, a lot of people are predicting a correction, at least with some of the categories, some people don't feel like this will last forever, so there would definitely be some hot companies that will be the next facebook and worth a lot of money, but some companies fail to materialize or achieve these really high expectations and it
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would just be paper money, and those valuations will not be a liquidity event at that value. emily: we are seeing bigger startups continue to grow, but are we seeing smaller startups that can't make it work, especially in these trying times? katie: sure. a lot of money has been put in the later stage, so it is hard to launch a start up and get it off the ground in the early days and get your pitch seen by investors, and these days, even meet investors because so many people are working remote. it seems like once a start up shows any traction, they are chasing them down to get access because there is so much money out there.
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emily: thank you for that additional context. coming up, the quest to understand the role your genes might play in covid-19. i am speaking with the ceo of 23andme about genomics in the coronavirus next. this is bloomberg. ♪
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emily: as more americans explore
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booster shots on their own, the cdc advisory committee voted in favor of a third vaccine shot for people with weakened immune systems. data is critical as we fight the pandemic, and 23andme knows this all too well. it reported its first public earnings with the revenue of $59 million, higher than prior. joining me to discuss this and more is 23andme ceo anne wojcicki. thank you for joining us. let's talk about your first quarter. how is that evolving in the midst of the pandemic? anne: good. we are super happy to be done with the spac process. it was a strong first quarter. we are happy to see consumer interest is there. we are enthused. where i think about my opportunities, it is areas i emphasized during the spac
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process, therapeutics, and the opportunity to help customers do more, getting more and more into that world of care in primary care. emily: we are fascinated by your take on public health messaging and what is happening, the latest that is happening during difficult times. what you think about the cdc, the booster recommendations, and the continued confusion around boosters themselves? anne: i just think people have a strong understanding of how the vaccines work. it is something i was reading about. there was something the other day on twitter about how with delta variant, you can potentially get a significant amount of virus in your nose where the antibodies cap combat it, so you might need to have -- can't combat it, so you might need to have the additional boosters, and there is the
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reality that the vaccine will prevent the severe infection, but not infection in general, so there is a lot the scientists are learning in the world is figuring out, and a lot of misinformation, but the most important thing is for people getting vaccinated and researchers empowered to study it. emily: what do you think of the public health messaging? what is the messaging coming from the cdc? are they being fast enough, transparent enough? yesterday i spoke with one ceo who said they would get the booster to protect their family and themselves. anne: the area that is the most controversial is whether children should have the follow-up from a versus what they did for the adults. i think a lot of parents, and i am included, that our kids are going back to school and i would love to have my kids vaccinated. i think the messaging is
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reflective of the fact that we are in a dynamic phase where we are constantly learning something new. again, my experience of working with the fda and other groups is that i have faith in the public health systems and i have been encouraged by the updates, and they do tend to be cautious, but i am pushing to be able to get my daughter vaccinated sooner rather than later. emily: now 23andme has been researching the connection between genes and covid to better understand if you catch it, how will it affect you. you found some fascinating connections with blood type, severity, now researching other things like long covid. what else are you hoping to find? anne: why covid is fascinating, and frankly it is not unique with covid, you actually have a number of viral infections that have this long tail. i pushed the team to say let's
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have this infrastructure where we can reach out to customers. i think long covid will be a big public health concern. we should embark on that research now. were talking about putting out surveys at some point in seeing whether we can understand long covid better. we help to find the genetic associations with the old factory gene -- old factory -- smelling gene and why some people are affected. it is the piece of the puzzle we are trying to contribute to. emily: you have a collaboration with gsk, 40 or so programs in development. talk to us more specifically about what you are most excited about, where you are excited to see some breakthroughs? anne: i have to say that, drug discovery is one of the most interesting areas and offer such a challenging problem. in a short timeframe, 23andme has been able to collaboratively
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develop 40 programs with gsk. gsk had the first program that is in the clinic now in phase one, and 23andme has a program solely on behind it that we have said would potentially be in the clinic before march next year, so end of march next year, so i am enthused, because i think genetics really has this opportunity to make drug development more successful and faster, and so for 23andme to say we are empowering these customers to come together and we will help by having treatments and cures that have come from this crowd sourced community will be amazing, so i am really enthused about the lead program in collaboration with gsk, and i am enthused about the program we have entirely on our own. emily: you are also doing interesting research into women's health, and recently
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published on reproductive aging and women. what are you finding that we did not know before? anne: one of the things fascinating about 23andme is we do research at scale, so we have disability to ask thousands and thousands of questions to our customers. frankly, i lose track of all the research coming out. we have so many different discoveries that are coming, and when we started this company, i started out by saying i wanted to create research at scale to answer hundreds and thousands of questions at the same time, so to be honest, i have not read that paper. emily: talk to us more about your evolving role in playing a greater role in our health. you have this 23andme plus premium subscription service. talk to us about how you see that expanding. anne: when we started the company, and the director of the
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organization said genetics has the opportunity to treat diseases. i am excited about one area, where we can help every single person what their inherent risk is for all common diseases. what is exciting is if you know you have a risk factor, something like type 2 diabetes, can you identify it early? not just focus on the treatment, but help people prevent. so there are areas like glaucoma , really interesting area we talk a lot about, where if you have it, you can get people thinking about preventing or diagnosing earlier. emily: anne wojcicki, ceo of 23andme, thank you for joining us. coming up, so five plunging --
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sofi plunging after the moratorium on student loans. we will talk about that next. ♪
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emily: shares of sofi plunging friday, after reporting wider than expected losses per share for the quarter. i caught up with the ceo anthony noto and ask about the announcement. anthony: investors appreciate the success of strategy and record results, with revenue up 74%, and a fourth quarter of consecutive positive ebida, but the student loan moratorium got
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pushed back until january 2022, causing us not to raise our full-year guidance. we have beaten in the same quarter, so people wanted us to raise the estimate, but we will lose about $40 million in revenue that will push into next year because of the delay. so it's not enough to raise estimates at this time. that was one factor. when you become a public company , there are lots of costs associated with the transaction and noncash charges that impact the number, so there is some confusion around that reported number. we want to execute on our strategy, delivering record results, accelerating growth. emily: sofi has a unique view into the health of consumers. now with lockdown come in and
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out, how would you gauge the economic stability of consumers right now? anthony: i would say it is really strong. we see spending trends relatively stable. we are benefiting from faster growth because people are switching payments from physical to digital, and doing more at home banking and realizing they can do everything from their mobile phone with sofi, so were benefiting from a secular transition to digital, allowing us to grow faster than the overall economy. i think investors are aware of the fact that to achieve their goals, they have to invest early , overseeing people investing in accounts and single stocks and etf's, so behavior has been
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positive and the awareness and access has become more plentiful. emily: both sofi and robinhood are targeting new investors with less experience with these investment products. how much progress are you making winning customers that would go to robinhood? what is the hard-sell? anthony: we are making great progress with over 200% year-to-year growth in total accounts exceeding a certain level for the first time. we pioneered fractional chairs. we do not charge for fractional shares or single stocks. our etf's are uniquely created for millennials and gen z. we offer robo investing in cryptocurrency. emily: there is talk about the replacement of daytrading when it comes to young people in the pandemic and the way they spend that attention on mobile devices. how d.c. that panning out? anthony: alvin -- do you see that panning out? anthony: our investors are
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investing, dollar cost averaging, investments being set up, and price points that allow people to diversify more easily. we have an etf with 500 stocks at $10 price points. the daytrading other platforms are experiencing, we don't see the statistics on our platform. if someone does have the behavior of a day trader, you have to block their account, so we are monitoring trading all the time and have a low number of people doing it, less than 1% of our accounts have more than three trades in one day. emily: i would love to hear where your crypto offerings are going, crypto rewards for credit offerings. what are the next advancements in crypto for sofi? anthony: investors want more and more selection and asset classes
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beside stocks. we added an etf calm tgif that pays a dividend every friday. we heard they wanted more selection within cryptocurrency. we originally offered bitcoin, ethereum, and we just added 16 coins including dogecoin, so we want to give them the best selection and listen to what they're looking for, so we are evaluating alternative asset classes beyond cryptocurrencies and robo and single stocks. looking at nft's and other asset classes like real estate and private equity. those have different requirements from a standpoint and investor standpoint, but we want to continue to expand the selection. emily: how do you see the uptake in your ipo product? anthony: broadly across the industry, the product is very
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high. it is not a product wall street has typically had access to at ipo prices. we have done five total ipo's so far, and look for opportunities to bring that unique selection to our members as well. we know our members want that and have not had access to it in the past. emily: how are you thinking about the return to the office? what is the policy? are you experimenting? will you be changing workforce policies for good? anthony: we did change our policy. we are allowing each employee to talk to their manager about the workplace, whether one of our 10 offices throughout the u.s. or their home, so we added the home as a potential workplace. it is up to them to work with their manager on whether they want to work from home, the office, or a hybrid approach. we are putting the health and
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safety of employees first and foremost. we plan to come back to work in october for those working in the workplace. we will delay that until later in the year, given the significant increase we have seen in covid cases tied to the delta variant. we are experiencing that first hand with friends and family, and it is a real risk, so we will delay the return to the workplace. we have had a phenomenal year and a half despite the challenges of the pandemic and the destruction to individual lives. it has performed remarkably with a lot of milestones, a we are comfortable working from home for the foreseeable future. emily: sofi's anthony noto. owings plan -- boeing's clan suffered a setback. the next planned mission may not happen until next year. they have been trying to troubleshoot the capsule on top of the rocket. it will be removed for deeper
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level troubleshooting. that does it for this edition of "bloomberg technology." stay with us for wall street week next. i am emily in san francisco. this is bloomberg. ♪
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david: the markets take it all in stride. this is "bloomberg wall street," i'm david westin. advisors come on whether we are witnessing a fundamental shift of power back to workers. >> households are an extra ordinary shape and many people don't have to go back to work and they are choosing not to. >> and larry summers of harvard on why he says that biden -- that the biden administration push is problematic. >> there's no more important price to increase in the emetic


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