Palantir pelletier set a september 9 date for an Investor Presentation. And bumble is preparing for a Public Offering that could come as early as the start of next year. Has, reports the cdc notified Public Health officials in all 50 states and five large cities to distribute a Coronavirus Vaccine to Health Care Workers and other highrisk groups as late as as early as late october or early november. Into question the timing because the president ial election is november 3. Lets see how the stories are playing out with Abigail Doolittle in new york. Stocks at record highs, but mixed messages beneath the surface. What are you reading . Abigail it was a very exciting day. At the beginning, we thought we would find a decent decline. The nasdaq went down by 1 . But at the end of the day, big gains including for the nasdaq 100. The s p 500 gaining 1. 5 . Perhaps because of vaccine hopes. For the mixed messages, there are nuances, including the fact that the mega caps you were mentioning like apple and tesla being down, they were up just fractionally today. And yesterday we were talking about bonds as a signal of caution. Bonds rallying again today. The best sector for the s p 500 wasnt tech or one of the cyclical sectors that folks like to see. It was utilities, a true deep end sector of 3. 1 . Those dividends look more attractive relative to yields on the day. A riskon day, but there were some nuances to keep watching as we push forward that could be worrisome. One sector that was truly on fire, chips. A stocks up nearly 3 . It had a lot to do with nvidia revealing a new gaming chip. From 5. 30 to went 650. 6. 50. 30 to apple,when it came to tesla, and assume all ending the day down, we discussed a big run up to those companies. We are preparing for tesla to possibly be added to the s p 500 any day now. What do you make of the fact that all of those names that investors have been so optimistic about were down . Abigail i think todays move was something that a lot of folks, traders, and investors were waiting for. How long can the stocks go higher . They came down to some degree. On tesla, news that gifford reduced their saved to a little bit more than 4 to close to 8 from 8 . That is a significant reduction. Apple down 2 . Apple was on pace for their worst day since march. Not a lot of news. We were talking about the possibility of technical selling. Some technical damage was done today. As for some of the other recent high flyers, zoom yesterday, unbelievable. Up 41 . Today down 7. 5 . They report tomorrow after the bell or it could be below before the bell. Analysts are pretty optimistic about that report. But some of these companies, ipody zoom and docusign over the last year or two. Have a lot of that new Company Momentum helping their shares higher recently. Especially companies doing well in the pandemic. New ipo newsoned around airbnb preferring the traditional route and bumble, 6 billion. Who knew . A dating app. Emily and who is on a dating app in the middle of a pandemic . Abigail doolittle, thank you so much for joining us. Continuing on the ipo theme, we rebuffing a spec offer from bill ackman. It was expected to be the biggest Public Offering since uber. And now the buzzing news about bumble. Is advisorsow cofounder and president. Lets start with airbnb. What do you make of the fact that airbnb is pushing ahead on this traditional route to ipo . They did consider a direct listing. They havent completely ruled out the acquisition just yet. Guest thanks for having the on. Pleasure to be with you. The final story for airbnb is written yet as to how they become public. Obviously, bill can be a very persuasive guy. Think those discussions may continue despite reports that they have largely broken off at this point since airbnb to filed for a traditional ipo. And last weeks news that the stockproved the new York Exchange for companies to raise capital may factor into airbnbs inking as well. It is brandnew for the direct listing market. My take at this point is while they have their paperwork in, and certainly prepared to be on path to becoming a Public Company in the near to immediate term near to medium term, they will keep their options open. Listing route can provide a significant advantage for companies. I think they will continue to consider that until they have to make a choice. Emily lets talk about those advantages. What do you think the benefit of this spac could be . Quicklyh spacs happen and time relative to a traditional ipo. But the advantages are the lack of a first daytrading pop. It doesnt first day trading pop. It doesnt leave a lot of money on the table. These pops happen in tech. And certainly there are a lot of folks, investors in Silicon Valley that talk about the first day pop and the amount of money that companies leave on the table when stocks ramp up significantly after the first day of trading and arent able to capture the value for the companys companies. Spacs dont typically see the first day pop. Tradeimes, you see them between 10 and 11. Given the incredible activity in the market, we have even seen some significant first day pops s, but nowhere near what we have seen with traditional ipos. A combination of timing, better dialed in pricing, particularly with things that spacs have offered to Companies Going public that way. Emily and you have news that bumble could be out of the gate as early as next year. I have been wondering about dating apps in the midst of a pandemic. It is more if a culture people to get together in person. But still, a potential 6 billion valuation . That surprised me. What is your take on that number . Mr. Smith we have heard numbers 6 billion to 8 billion. That is a tremendous value for the company. Hats off to the team there that has helped build tender and moved on to building bumble. We understand subscriber numbers in the 100 million range. I think it is a testament to the fact that the team has built something that is focused on women. It has built a tremendous and sticky subscriber base. I am not using dating apps at all, but the reality in this environment is that electronic connections are taking the place during the pandemic of physical connections. And even though dates look presumably a lot different in this environment than they did six months to 12 months ago, i think it is more about making those connections with people that you are not able to be with in the current environment. Dating sites like this that allow for those connections are really replacing the traditional conductivity that we have as him beings. Therefore, bumble is riding the wave of that. A building the connection between people. Emily we are going to have to do some better User Research there. You and me both. Lets talk about palantir taking a different route than airbnb and possibly bumble as well. What do you make of palantirs approach so far . Mr. Smith i was not surprised they were going to direct listing route. That was always talked about and has been in the cards for them. I think the fcc secs announcement last week that they are okaying direct listings that come with capital raising, the nasdaq will not be far behind. It augments that. We understand palantir is unlikely to raise capital with a direct listing because they just raise capital earlier in the summer. They have capital on the balance sheet. Its an approach that allows them to presumably cut down on overall fees necessary to go public and allow the shares to begin trading. It allows the market to set the value rather than the owners of the spac for the underwriters in a traditional ipo. It doesnt surprise me and i think it appeals to them and the ethos that people have driven in the company. Another thing interesting about palantir is we have been able to take the cover off the company and look at their paperwork. The company has not been profitable up to this point. It may never be profitable. That is often the case that companies that start out and are not profitable up until their time of ipo. That is a risk factor that you see in the filings. The company has engendered some fairly significant losses. Despite the huge name and huge success and the government sector, i think it will be interesting to watch how investors look at the 500 million loss last year and looking at how the business can grow and need capital going forward. Emily how is it that 2020 with a pandemic and economic recession, tens of millions of people out of work, has ended up to be a hot year for tech ipos . Mr. Smith its a testament to the fact that there is an enormous amount of capital out there looking for some form of yield. We have Interest Rates that zero notto be near only here, but around the world. To bes a hot place because of the growth that tech drives. It is viewed to be a way to generate meaningful return. Also, tech is part of the solution associated with the pandemic. With abigailt zoom and a number of other Technology Companies that have great tailwinds in this current environment because they are able to deliver this kind of conductivity that we are enjoying and others are enjoying to run businesses and be with their fellow humans beings. What we are seeing is definitely a hot ipo market. Once again, a market that, in many ways, is led by tech. It is a perception of a combination of great returns and the ability to help get through the pandemic until we can get back to a level of normality that we all hope for. Emily all right, ted. Think you for your insights. We will be all over this fall as Companies Come out of the gate. President of union square advisors. Coming up, the clock is ticking. Tiktok needs to reach an acquisition deal or risk being banned in the United States by september 15. We will have the latest twist in the tiktok story, next. This is bloomberg. Has learned the Trump Administration is debating the scope and Effective Date on the ban for chinese social media apps wechat and tiktok. It will make their decisions public later this month. Kurt wagner covers the company for us. What does this mean given the september 15 date for tiktok to sell to u. S. Company . It means that there is still a lot of confusion and a lot of stuff that needs to be figured out. The date is the timeline for when tiktok needs to be sold. It is also the timeline for when trouble make a decision about wechat, owned by a totally different company. There are a couple of different timelines converging here. The important thing to know is that most of the companies here are trying to figure out exactly what this means. We have been talking about it for weeks. Unclear if this will impact apples ability to do willess in china or if it be limited to the United States. There is a bunch of stuff still being worked out. I think that is what we have learned so far today. Emily in the meantime, i feel like a week ago, we were looking at 24 hours to 48 hours for a deal to be announced. Things seem to have significantly slowed down. Is that your sense . Is it the fact the Chinese Government has said that we will have something to say about this that some of these parties are wondering if a deal will happen at all . Kurt i think thats exactly what happened. You and i spoke on friday, i believe. I was saying that i would be sitting around over the weekend waiting for a phone call. That, obviously, did not happen. What did happen is the Chinese Government said that they need to be involved in this and basically get approval as well. You have the u. S. Government and Chinese Government that both need to be a piece for any type of deal to go through. My understanding is that has created a lot of extra hoops to jump through. And while the sides are still interested as far as no one pulling any bids and discussions still happening but it has definitely slowed down. There is a Third Major Party that needs to be on board with whatever the decision is. And that has created a bit of a delay. Emily there is also the question of whether tiktoks magic algorithms will be part of the deal. What is the likely outcome here, in your view . Kurt it is hard to predict. I am starting to lean towards whoever buys tiktok may have to create their own algorithm for the app. That is part of the Chinese Governments new rule. They need to have approval over any sale of Artificial Intelligence that would go to another country, including tiktoks algorithms. We know there is a discussion about buying tiktok with the algorithm and without it. That technology for a certain amount of time. If you are microsoft, could you ces technology while you build your own . It is unclear again if either both governments would go for Something Like that. I am told it is something that is at least being discussed. Timing, then, on your end . Will you be working through the weekend . Are we a week out . Two weeks out . Kurt i wish i knew. I certainly hope im not working through the weekend. Im getting the sense that this has slowed down somewhat considerably. When you and i were speaking late last week, people were sitting on pins and needles. I dont get that same sense of urgency from the phone calls i have been having so far this week. It certainly doesnt mean that it cant happen. But at this point, i think i would be more surprised if we get an answer before the weekend than if we do sometime next week. Iily for your sake, kurt, hope you get to enjoy some of it. Bloombergs kurt wagner, thank you for giving us that update and continuing to chase the story. Coming up, draft kings is making a draft of its own. We are looking at the newest addition to their board and what it means for the companys strategy. That is next. This is bloomberg. Emily former nba superstar Michael Jordan is putting his bet on the gambling space and draft kings receiving an equity stake in the company in exchange for becoming a special advisor to draft kings board of directors. Joining us now is brandon who covers the company for bloomberg. About jordan is huge. You cant imagine a bigger sports superstar. How involved is he actually going to be . Thaton this is the person is the most iconic spokesperson and brand in the world. Hes joining to be an advisor. What exactly that means remains to be seen. Having the jordan name involved in this, we saw the stock up 8 . Emily so what does this actually mean for draft kings . It is a big vote of confidence for somebody that is really popular. Could this materially change their trajectory . Brandon what i think it means is, if you are looking at this from the perspective of Michael Jordan doesnt need to do things like this. And he doesnt put his name to just anything. This is someone that has his door knocked on to advertise different products across the globe. And for him to be willing to do this, i think it says something. Emily and what is the outlook for draft kings at this moment with uncertainty surrounding the return of professional sports . Some have come back in fits and starts. It is a huge part of the platform. A lot of uncertainty ahead. Perspective, one what we have seen and heard from our colleagues at Bloomberg Intelligence is that they are basically priced to perfection right now. The stock has doubled since they started trading with the reverse merger back in april. Sense, not a lot can go wrong. Online. Is moving people see the opportunity there. The future is bright. For them to keep their stock price on this insane sort of line, there is not a lot of room for error. Emily what is next for the company . I know they have been getting creative about the kind of activities they will take bets on. How does that evolve as shelterinplace continues in parts of the world . Brandon if i had to guess, the big thing in this space is the fight for market share. You see everybody coming out of the woodwork. If you pull up a fantasy baseball application, you have the chance to do bets. The space is getting inundated and over the next couple of years, you will see a fight for market share. Something i know you and we will continue to cover. Brandon covers draft kings for us on the big news of Michael Jordan taking a stake in the company and advising the board. Coming up, how growing up in poverty and violence shaped this mayors vision for innovative change for his city amidst the pandemic. We will hear from michael taft, the first black mayor of stockton and the youngest mayor from a mayor major u. S. City. We will be back. This is bloomberg. Toly welcome back bloomberg technology. Im emily chang. Dayge 26, the same President Trump was elected in 2016, Michael Tubbs became the first africanamerican mayor of his town of stockton, california. He was the youngest mayor of a major American City ever. I sat down with him to learn how the people of his town are coping with the covid19 crisis and his thoughts on the controversial gig economy. Mayor tubbs i am incredibly proud of the resilience of the folks i represent as mayor. Howough im saddened by often they have to be resilient. 2008 recession hit stockton incredibly hard. We were the foreclosure capital of the company for two years. Folks had their life savings wiped out. Their folks who lost Health Care Provisions and their retirement. We saw the restructuring that came from bankruptcy. 2019 pandemice and recession. Folks are stressed and anxious about distance learning. If their kids will get the education will they deserve. Wondering if it is safe to go back to work. They are wondering how to make payroll as a small business. Peopley laying off nine on their staff that are like family to them, but making sure they have enough for their families. Worried about making rent. So many folks are essential workers. Migrant workers were not given the ppe protection they needed. A lot of anxiety. Beeninder of where we have in terms of the Economic Hardship space. But i think, in a perverse way, because we have been through so many hard times as a community, there is not a resignation to it. But ok, weve done this before. We will whether it together. Emily you have spoken about the gig economy in the past. Lyft drivers. People rely on that for extra work. That work has plummeted unless you are delivering food. We just did a story about people hanging smartphones in trees so that they can be the first to get contacted about deliveries. What is your view about that kind of desperation . I think the gig economy can be so interesting for a variety of reasons. On one hand, its innovation. Uber and lyft have made my life easier in many respects. Whatou have to think about type of society or country that folks are where working another eight hours after work to pay bills. What type of society do we live in where folks are willing to work without benefits and because there is no other option or safety net. About this. Orn the desperation is real. Restso puts the notion to that people dont want to work. That people dont want to provide. Creativele are super doing all kinds of things to make money. And not to make money for luxurious things. Folks are paying off debt, paying for private school for their kids, maybe. Paying for health care costs. Paying rent. And i think to your point, it shows the savage nature, in many respects, of the economy. Covid19, we had to establish some guardrails so that folks are ok. Particularly at a time when , in anike jeff bezos incredibly short amount of time, has amassed even more wealth. And people are hanging phones outside their warehouses to get a 10 ride. Emily there was a big protest in front of bezoss mansion in washington, d. C. , where workers were calling for a rise in their minimum wage. It they want 30 an hour. Is that fair . I know mayor tubbs that d. C. Is expensive. I agree with the point that in and theths, jeff bezos that wealth,eated it allows them to pay for necessity by grit. There is a number four we get to and they provide a baseline level of dignity for the pope the folks that made his wealth. Emily new Companies Like uber , they require these companies to make fulltime employees with benefits, do you think they should have to do that . It would dramatically change their business models. Mayor tubbs i think that there has to be a conversation around making sure all workers benefits are necessary. There are proposals that they enjoy being contractors and enjoy the flexibility of the job. And not having to work a consistent schedule. We have all these folks that are working and are sleeping in seeing thatars, not there is a way that it is affecting their compensation. Whether it is fulltime employment. Drivers, they come to the table. These solutions and work on these problems. Huge theme of the hbo documentary is education as a tool. It you mentioned that with your own education, obviously. Education is grappling with great inequity. Education in the children and their own community . Mayor tubbs my biggest concern is how to mitigate the impact of the last year. Even though the impact reverberates 20 years to 30 years down the line. There are stress levels in terms ofcrimes committed, in terms i dont see how being stuck in the house with parents that are stressed to make sure bills are met. School, for a lot of kids, was the one safe place where they could eat. Kids, that is their only place to get their clothing washed. Impact t have an im incredibly worried and thinking through as a city what can we do during covid to make sure that our babies are ok. And that we do everything we can to medicate mitigate the impacts from the pandemic. And on the education front, i think that is compounded. We already know that summer tells us that the three months at home in the summer is one of the biggest reasons for the achievement gap. Losecan use an entire an entire year of learning with three months in the summer not doing anything. Compound that with learning not havingll kids access to the internet. Given the housing issues we are seeing, most kids dont have a dedicated quiet spot to study. Are working from home as well. And they have brothers and cousins. The chaos is going to be a challenge. For all of us, it is in our best interest to make sure that during covid and especially after covid, we provide extra resources to make sure that we have that. Mayor ofchael tubbs, stockton, california, start revenue hbo documentary stockton on my mind on hbo. All right, coming up, new commentary on the redhot tech ipo scene from one of wall streets most respected voices from renaissance capital. She joins us next. This is bluebird. Bloomberg. Emily back to the big tech ipo news today. Airbnb rebuffing a merger offer by activist investor bill ackman, choosing the traditional route for ipos instead. And setting the date for september 9 for the Investor Presentation by palantir. And bumble is preparing for a Public Offering that could come at the beginning of next year. It will be in the range of 6 billion to 8 billion by some estimates. For more insights on these stories, we have one of the most respected ipo voices on wall street, that is Kathleen Smith. A lot to digest today. What do you make of the fact that a lot of these companies are getting out of the gate at once . Ms. Smith finally, they are getting out of the gate. And many have already, but this is the first time we will see a rash of software companies. And a lot of different ways to hit the public market. We havespacs, listings, we have regular way ipos. Returnsestors make good on ipos, that means the ipo market is ready for issuance. And you can see from the renaissance ipo etf that so far this year, investors are happy owning newly public companies. The market is wide open for issuance. Veryll see some of the large and interesting unicorns at the market. Emily so given the environment out there. Lets take a look at airbnb, a company that has seen a dramatic the pandemic. Not for the better. Travel is recovering, but a long way to go. A you are airbnb, do you do direct listing, traditional ipo, or do you consider a spac . Ms. Smith i know there was rumor about airbnb may be being acquired by spac. But i know airbnb wants to do a regular way ipo. Ipo has the most scrutiny and a pretty successful method for raising capital. And the challenge for airbnb will be the most highly valued unicorn having the valuation that is a lot less than what it had at its peak. And we run into the issues of postcovid and travel. Their peers are not doing that well. But investors are going to look beyond that and be really interested in this platform. Companye a new economy that will attract so much attention by investors. We are all looking forward to this one. I think the ipo will work. It will come down to how they price it and it will do just fine. Emily are you expecting airbnb to take a big valuation haircut as a result of this . Ms. Smith we think it will have to sit in the context of other companies in the travel industry that have taken valuation haircuts themselves. Will. Think it we will have to look at the numbers and study it. Rumors for the private valuation that theyve had in recent rounds is far below the peak. I think it was 18 billion. We think it will come below the peak valuation. Emily what is your take on bumble . Obviously, a popular dating app. Dating has been disrupted by the pandemic. The fact that you cant see each other in person. And yet, this Company Planning to go out of the gate and looking at a 6 billion to 8 billion valuation. Industry itself has been massively put on hold. Bumble,h in looking at if they are not looking if they are not making money, which i dont think they are, we will have to figure that out. I will point out that match group has treated fairly well. I think match will be used as a peer here. I think there is a pathway for bumble to go public. The issue is just how to value this company that im assuming has large losses. Emily how do you think 2020 will be remembered in the pantheon of ipo years . It is astonishing, in a way, that in the middle of a pandemic and economic recession, we see a boon in tech ipos. Ms. Smith we were pretty surprised, too. Takesy, the ipo market time to recover after the drop the market had in march. But instead of dropping, it took off. And that is because so many of the companies that go public our new economy companies. We have so Many Software companies that have gone public. Our Largest Holding is zoom. Have cloudk, we strike, data dog. That fit thepanies timeframe we are in doing virtual business and having Companies Move to the cloud and digital platforms. The ipo market is in a sweet spot the kinds of companies that are ripe for this kind of market. I am happy to say it surprised us. It gives the chance for Many Companies that stayed private long enough to get some liquidity. And we are in an Election Year so there is a rush of companies trying to get out now ahead of some of the volatility that will happen around the election. So this is good news if you are a private company. And theres a lot of interest. Should get going while the gettings good. Emily do you think the game could change as a result or around the timing of the election . Will things get more difficult or choppy . Ms. Smith with the stock market, the game can change at any time. But we look at the history of what happens, most companies try to avoid tapping the market ahead of and around the election. There tends to be a little bit of a dead spot. Shows that we get a lighter amount of issuance at the time. Nothing matters. Things are good. You just have to be conservative. It has been a great market for investors. Outstrongest ones come first. Investors are throwing money at anything. It will make it hard for companies to jump on this bandwagon. Get back to more evaluations for investors. You never know. The idea is to move forward. From Kathleen Smith renaissance capital. Thank you for your insights. We will be following it in the days and weeks ahead. The duke and duchess of sussex are coming to netflix six months after stepping down from their roles as senior british royals. Prince harry and Meghan Markle are setting out to be hollywood producers. The details, next. This is bloomberg. Wife prince harry and his Meghan Markle have signed a wideranging production deal with netflix. The pair becoming the latest global celebrities on the streaming services roster. This is as they spar over streaming rights for blockbuster films. Lets bring in our correspondent that covers entertainment. What do you make of the deal, lucas . Now we know what they have been up to. Netflix is in the process of signing major every major public and political figure. Im waiting to see after the obamas and the royals, who they get next. This. W very little about it is a multiyear deal that will span different genres. It, reality. Meghan markle used to be an actress. She will not be going back in front of the camera. It is really a case of two very famous people that want to lend their name to film and television. Getting in bed with the Biggest Online tv network. Its not like the prince has a lot of experience, but his name has value and cachet for netflix as it tries to sell shows everywhere. Meantime, the question remains when production can restart in earnest given the halt that the pandemic has put on the entertainment industries. You also wrote a piece about how netflix and amazon were fighting for the rights of old reruns and now old new blockbuster films. Whats happening . Lucas these deals are the pay one deals and it sounds boring. Partially because it is. They have been the bedrock of Cable Networks like hbo, starz, and more. Netflix had a deal with disney including avengers, captain america, moana. Now the deals at sony and itversal have are coming up will be renegotiated. It will be an interesting test of how much money a studio can get. They are likely worth more than the office, friends, and south park combined. Will it be the old dogs . ,r will you see disney and hulu amazon and netflix coming into gobble some of these up . Emily and last question, you have mulan going direct to streaming on disney plus this weekend. We are excited in my house about that. What a big deal because this was supposed to be a hit in theaters. It got pushed back and disney said its going out on disney plus. Lucas a huge test of this new premium video on demand model where you can play a little extra pay a little extra at home to watch it instead of going to the theater. I spoke with a producer of the movie who said that he thinks it is a good price point. I dont know because we dont have experience with Something Like this. It will be interesting to watch. Because it will be in theaters in a lot of countries and available at home in the u. S. Emily close to 30 you have to pay for it, but im sure there are some desperate parents out there to get some fresh content in front of their kids. Lucas shaw, thank you for that update. We will be watching to see how mulan does. That is it for this edition of bloomberg technology. Bloomberg daybreak us you is next. Im emily chang. This is bloomberg. Give you my world how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with Xfinity Mobile. 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