The ceo says it is part of the plan. He tells wall street to look for the long game. And, many state and local elections are taking place tuesday. In our electioneering series, we examine free speech versus falsehoods when it comes to political ads. To ban or allow . It is pitting facebook against twitter. First, uber tanked on tuesday after failing to prove itself to wall street. While the ridehailing app is projecting profitability by 2021, it did just not seem to be enough. Shares hitting a record intraday loss. The reported a rocky quarter on for more, i want to bring in an monday. Mkm partners executive director. Walk me through the share price action tuesday. What is your take . Thank you for having me. I think that what uber did was, i had of its ipo lockups ahead of its three ipo lockups, they should have reported a good quarter but they reported a mixed quarter. They had higher take rates which led to a beat in revenue. It was a mixed quarter. Ahead of lockups, investors are not willing to stick around for a longer time given tomorrow, an estimated 800 million shares will be for sale. Thinking about how many shares are off in the options. Taylor bear with me because i know you are on the phone, but i want to show a chart you are to the bloomberg terminal audience showing the market cap of the Company Versus the value of the free float. Right now, it looks like there billion ofut 5. 5 free float outstanding. How much of the price action seems to be a technical issue around the lockup ending versus the fundamentals that you were also highlighting . Rohit it is both. I would add a third factor. The third factor is regulatory overhang. Issues the company is facing in San Francisco, london and new york. Three issues the company is facing. Technical, somewhat mixed fundamentals, and what is happening with the regulatory environment. In the near term there will be more shares coming down the pike. I agree with the investors bailing out on the stock today. Taylor do you think there is so much pressure on these recent companies that are ipoing to be profitable, that no matter what they say, nothing is good enough right now . Rohit i think there is a factor of how much you are going to believe in the story. Most of these names, they have been great stories. In terms of the story, we want to see execution. We want to see a clear pathway. I think uber is taking steps, but baby steps right now. We see the Company Getting to profitability, we see some numbers trending in the right direction but it is very slow. Taylor rohit will stay with me because i also want to pivot to another company out with earnings today, peloton. They are forecasting Strong Revenue growth and they reported a narrower loss than expected for the quarter. We met up with ceo john foley and asked about the report. John it will be profitable over the next couple of years in the u. K. And canada. Our tread businesses subscale from our manufacturing perspective so it has lower margins but as it gets to scale, the margins and Unit Economics go up. We dont need to launch more products or more platforms. We may choose to invest on those things over time but it is not needed for profitability. To lower prices . We have free trials being offered. How fierce is competition . How fierce how essential is it that you win the scale in markets like u. K. And germany . John right now, we dont feel we have a true competitor, a likeminded competitor. A textbased wellcapitalized company. It has always been the question of, should you lower the price on the peloton bike . I found that the company has been incredibly academic to think about lowering the price. When you double the company in size every year, including last quarter, 103 topline growth, it is somewhat academic to think about lowering the price when you are selling them as fast as you can make them at the price point. The value members see when they buy one, they can buy them for 58 per month and you can divide by two because your living partner also rides. 29 per month for the hardware and 39 per month for the subscription but for a household, less than 50 per adult for unlimited boutique fitness classes with the best bike, software, instructors in the world. It is a pretty good Value Proposition at the current price point. Taylor that was peloton ceo john foley. Speaking to caroline hyde. You are staying with me, give your thoughts on the share price reaction. You have a stock today off almost 8 , decent fundamentals from the company. What do you make of it . Rohit i agree. A goodpany did report quarter. Objectively speaking, the numbers tell a very good story. The company is growing revenue year on year, five quarters in a row, having stable Gross Margins with rising Gross Margins on the subscription side. Things are trending in the right direction. The company is pedaling in the right direction. I think, today, investors want to see profitability. I think the story here, what peloton is telling the investors, look, we will invest heavily this year. Stay with us this year and next year we will show a real progression. It is just about patience, how patient investors are willing to be and willing to accept the story today. On top of that, you are selling a very expensive product. We dont know how large the market is. A year goes by and if we are in a macroeconomic slowdown, what happens . That is the worry investors have today. We are not willing to stick around with the patients that john is asking them to have. Taylor are you sticking around with that . The ceo came out and said, we could be profitable tomorrow if we wanted to but we really want to invest in growth at this point. Are you comfortable knowing that . Rohit longerterm, i think we would be comfortable. Today, given the investor sentiment, given that the company just acquired a manufacturer, they are investing they are overburdening the cost structure, investing in marketing, investing in a lot of things. We will feel, we will wait on the sidelines until they step towards generating some cash flow as a whole. Youor does it comfort knowing the ceo says there is no competition at this point . Rohit i would take the other side. From a comparative standpoint, there is nothing like the peloton bike on the market with the integrated ecosystem, but content and the bigscreen. But when you look at consumers, where can i work out today . Where can i spend 150 per month and what can i do . There are a lot of connected products. I think if you take a broader view of options that consumers have, it is getting more and more saturated. History says that at home fitness, you have not seen a very longterm trajectory of that yet. Maybe peloton is the one that will show that pathway but we havent seen it yet. Taylor Rohit Kulkarni of m km partners, he is the executive director. Thanks for joining us. Coming up, lessons learned. We hear from the ceo of Goldman Sachs, David Solomon, about what he is doing differently following stinging losses from wework and uber. Thats next. Shareso to break, match plummeting in afterhours trading tuesday after they reported a gift disappointing revenue forecast. They are citing mounting legal costs and conditions like brexit for part of its sales problem. The ceo saying the company is embroiled in two or three big lawsuits. Last month, match was sued by the federal trade commission for allegedly deceiving consumers. Shares down more than 15 in afterhours trading. This is bloomberg. Taylor Goldman Sachs stung by losses in both uber and wework but ceo David Solomon has a message for investors in growth stocks, that profit does matter. He spoke on the current state of the ipo market including what could be the Worlds Largest ever ipo, saudi arabias aramco. David we are involved in the aramco ipo. We have been in the ipo business for a long time. Have been involved for the last 30, 40 years, so generally speaking, when there are significant transactions we are fortunate to be in a position to help clients. It seems difficult to value this one and ipos in general. There was a time when people were talking about wework as a 60 billion, 65 billion company. It is clearly not. Why is it so hard to put a value on companies this close to going private . David at the end of the day, when the rubber hit the road, what are investors willing to pay for a company when they have the transparency of the real Financial Information that has been vetted and presented in an appropriate way . When you have that, the market will speak. Using wework as an example, there is a lot of hype around that. When investors were able to have a discussion with real Financial Information and provide feedback and work with an Underwriting Group to work with the company, there is a clear view of where the company could go public. This group of companies, the unicorns, that have had ipo problems or have not performed well postipo, like uber, are you concerned that we are seeing reflections of the dotcom era where it was all about churning higher revenues and no one focused on making money . David these are real companies. We can debate the valuations, but these are certainly real companies. That is very different in the narrow slice of time during the dotcom bubble, where there were lots of companies that were in a different state that were getting to public markets. , do think what is happening is the Monetary Policy that has been rampant around the world has forced people on the risk curve, forced people to look for other ways to drive returns. One of the things they are chasing is growth. Growth at all costs. I think there has been a sentiment that if you can hook your wagon to a company focused on growth, that something good will come to that. That has incented lots of companies to take the capital they are raising from investors and spend it aggressively to drive topline Growth Without understanding how that can translate to profitability. The market is speaking and telling people, lets rein that in. It is important for people to grow, but there has to be a clear and articulated path. I am a believer that over time a company can only be worth the future discounted value of its earnings. It is important to have a Business Model that can generate profitability. I think there is more market discipline coming into play and i think that is healthy for markets. Taylor that was David Solomon. For more, lets bring it bloombergs sonali basak in new york. Part of what you do is covering banks and ceos. Have you ever heard them talk so much about that growth, about the market starting to discern between the path to profitability . Beeni the markets have very irrational for a while now. As we get into the next leg of the central banking policy, frankly, this irrational type behavior that is driving these skyhigh valuations has to come to a reckoning. Everyone is not amazon. People are starting to tighten the reins. It only took one major flop for people to turn around quickly. We have had the head of Investment Banking and citigroup in Early September tell us that for Bloomberg Television as well. People are already starting to tighten the reins earlier this summer. The talk is getting a lot louder for banks like Goldman Sachs, j. P. Morgan, that stuck with a lot of these companies through very tough times. Taylor talk to me more about jamie dimons comments, saying private markets arent real valuations because you dont have a price discovery, you have an investor telling you that is what its worth. Sonali jamie dimon is saying something similar to David Solomon, that one investor doesnt set of valuation. A market of investors sets of valuation. Things can be volatile until then. Jamie dimon also said something that softbank is also addressing, which is changes in Corporate Governance. That is something we have been waiting for forever here. Softbank, right now, according to the financial times, is thinking about tightening the reins in terms of Corporate Governance for the companies it backs. That is something you heard jamie dimon also address. Taylor another story that caught our attention here as we look at the tech landscape has been robin hood markets. There was a story coming out that put down a deposit on margin and you get infinite leverage. There is a glitch in the system. Sonali basically, you have a certain set of robin hood users who are selling calls and that money is being counted in that users capital. This is such a timely story. We are a week away from money 2020 now. Thousands of people were meeting about the future of fintech. Once we are borrowing from a firm, youre becoming a bank and a personal hedge fund. You are sitting here and having to deal with issues as you scale and grow and robin hood is trying to not only grow but has considered a banking charter. These glitters glitches never looked good but they say it is isolated to certain users. The users that have been doing this say they have levered a 4000 investment into a Million Dollar investment. There are insane trades we are seeing that lots of people are bragging about taking advantage of the glitch. Taylor going back to derivative school to learn about covered calls and margins. Thank you for joining me. Coming up, more from bloombergs extensive tesla model three survey. We dive into how many users feel safer with the autopilot feature. Thats next. Bloomberg technology is livestreaming on twitter. Be sure to follow our global breaking news network at tictoc on twitter. This is bloomberg. Taylor it is the biggest survey of tesla drivers ever conducted and bloomberg has pulled 5000 model three owners. Polled almost 5000 model three owners. We asked about automated driving. It turns out, more than 90 say the feature of autopilot made them feel safer. Craig covers tesla and joins us. So, autopilot, hopeful or hurtful . Craig it is a messy answer to a simple question. Often the case with all things autopilot. This is a system that tesla has generated so much buzz with, that elon musk has invested so much money in, so much reputation in. The findings of the survey are fascinating. There are sort of data points galore in here as you would expect with a survey as big as this was. You have a lot of people who claim that autopilot, some even go so far as to credit the system with saving their lives. Nine people said that. Six within the survey also claimed that autopilot contributed to a collision. You have more than 90 of people that say that they feel like this system makes them safer. Its sort of a running joke covering the car industry, many people thinking they are above average drivers. It is hard to put too much stock into that claim. What we do know is, this messiness of the findings of this survey reflects the messiness of the future of automated driving in that there are going to be times these systems save us and there will be times that as they are ironing the kinks out, that they put us into dangerous situations. Taylor describe to me, as i tried to spit my words out, the distinction between autopilot, i can take a nap in the backseat, versus auto assisted, where i should maybe be paying attention and not just snoozing in the back. Where are we in that technology . Craig we should not be in a position of just napping in the backseat even with autopilot, and that is why the name is so controversial. The name has a connotation that you could do that and we have seen these videos that people take on the highway where they see someone who has fallen asleep at the wheel of their autopilot toied on continue to drive them. We are not at the point where you can safely do that. That is why it is so important that tesla does emphasize that people should be paying attention at all times. But you do get these mixed messages where elon musk is touting the system to cbs last year, he is showing the system around with his hands on his lap. That goes against what is actually in the handbook when you buy a tesla, how you should use the system. This is a company that talks about a full selfdriving package with tesla and yet this is not a system that could be safely relied on for selfdriving in any situation. This is a system where you need to be paying attention and that is why it is technology that is so controversial. Taylor quickly, describe the two different packages that tesla offers within autopilot. There have been Software Updates and there are different packages you can or cant turn off. Craig they sell a higher level of capability. Some of that capability, they have not delivered yet. It is unclear how long it will be delivered. But with that subsystem of full self driving, one of the sort of features within that suite of technology, for instance, it is a feature that allows you to call your car to you in a parking lot. It is called summoned. Just with that, we have seen sort of near misses. You do see people that are very excited about it and like to show it off. But again, back to the word controversial. Taylor bloombergs craig trudell, not controversial, thank you for joining us. Coming up, our conversation with the fcc chairman. What he has to say about huawei being caught in the trade war crosshairs. This is bloomberg. Taylor this is Bloomberg Technology global link. We now join bloomberg daybreak australia to bring you the latest in global tech news. Im taylor riggs in San Francisco. With shery ahn in new york and haidi stroudwatts in sydney. Lets take a look at the global top tech stories of the day. Haidi . Haidi Masayoshi Son is paying the price for his bold bets on startups like wework to uber. The softbank founder has seen his net worth fall after his strategy of aggressively backing Technology Pioneers backfired. His fortune tumbled to roughly 13. 1 billion. It peaked in july at 20 billion according to the bloomberg billionaires index. Facebook has expanded its production to vietnam and will manufacture its oculus rift excess x s virtualreality headsets in the country, a