After an unexpected spike in jobless claims. New fears that the u. S. Economy will not recover any time soon. Amazon, alphabet all dropping more than 3 . Microsoft falling on the back of its Earnings Results after reporting a slowdown in the cloud and even tesla dropping, despite beating earnings. For more on the selloff, i want to bring in Abigail Doolittle who has been covering the back and forth. Investors see reacting to the bad news, which honestly we see week after week. What drove the pessimism today . Reporter its funny you should say that because we finally have something to talk about. Instead of all these choppy little intraday volatility days, it has finally translated into closing volatility. The s p 500 down more than 1 , its worst day in about a month. The nasdaq 100 down more than 2. 5 . Its worst day in almost two months. Index chip index also lower. And behind it, all those mega cap numbers. Even though the selloff hit midday, that was the first rise or move in the wrong direction for jobless claims since march. Investors digesting. It doesnt make a trend but if you see a couple weeks like that , it would not be great for the economy. Microsoft actually put up a great quarter. 47 d growth at yearoveryear is nothing to look past, but with a stock price for perfection up more than 30 on the year into yesterday, investors use it as a reason to take chips off the table. The faang index from the march trough to the recent peak up more than 100 . These are Huge Companies that investors have been bidding up. Apple, amazon, and facebook report next week. We have the example of netflix yesterday. Tesla, a good quarter. But perhaps a sell on the news events. Perhaps a too far, too fast rally. Emily intel also out with its results of shares plunging, down almost 9 right now. The company reporting some delays in ship production. Abigail you could say they pulled on netflix. The quarter they reported was not awful but the guide for the Third Quarter is what people are disappointed in. Looks like they are delaying next generation chips. Another case of too far, too fast. If you will be priced or perfection, you will have to have perfect product. Initially the stock was higher up they beat the raising of the dividend by 14 . Lots of positive stuff happening there. Nonetheless, the stock down. We have to wait for the Earnings Call to see what investors are reading into. Or you could have a case of throwing the baby out with the bathwater. It could be a continued selloff. Of course we have contact congressional hearings next week for mega cap companies. Thats a pressure. Skynt on sky walks works, it will be interesting to see if they have anything with apple. Emily we will be following the apple resorts results and tim cooks appearance on capitol hill next week. Abigail doolittle, thank you for that. And speaking of apple, the cofounder, steve wozniak, is suing youtube for failing to request to take down bitcoins scam videos. He says its cameras have used his name and likeness for months scammers have used his name and likeness for months. People from the likes of joe biden and bill gates were hacked on twitter. It started in early may, believed or not, more than two months ago. Some people started contacting us saying they sent bitcoin in and why didnt i send them twice as much back . They said they saw it on a featured Youtube Video for them to watch where they were coming from. Then we went online and discovered there were a whole bunch of these. From then on, we probably set down fraud notices and written statements of what was going on youtube was a crime to dozens or hundreds of times, late nights, until 3 00 in the morning. We are just normal people. We had to go through the whole process. Toy dont have a category report a crime so a human can look at it. I dont think a human at youtube ever saw what was going on here. I just dont believe it. We went to state police and they got involved. But we just could not get to a human at youtube. Youtubeour suit alleges has been completely unresponsive and you also praised twitter for reacting the same day of that big hack that was related to this. That yout youtube do think they should have done . You go to thing, report something is wrong with a fraud you can reported as there are about seven categories, but fraud was one and copyright violation, which also applies, and we can reported and type in a statement. The statement would have gotten any humans attention, but the algorithms, computer, Artificial Intelligence cannot tell what you mean. Somebody sends you one dollar and you send to dollars back, thats a scam. Any news outlet or human in the world would say its a crime. To a humanever got was the problem and we could not get a response from them. I dont like to try and pull strings and go around things the way normal, average people cant. Every day for the last two months, it has been up there. The scams have been up on youtube. Emily we did get a statement from youtube on this. They say they take account security very seriously, automatically protect users and notify them when they detect suspicious activity. Did you ever reach out to the ceo of youtube, or somebody else . I dont go around and use my privilege because of my name. , maybe itormal person never got to a human. May be a computer that doesnt understand what a scam is saw it and did not respond at all. Whatever they say they take seriously, they did not. They have a little category saying there is a crime going on and please let a human see this. They dont have that. Emily what do you want youtube to do right now about this . Youtube . No, its almost everybody like youtube. This is a broad category that you cant reach humans when you need them for support all over the tech industry. It should be expressed that when it is a matter of a real crime going on, obvious crime, any human would look at this and say it is a scam, there has to be ways to not have youtube be a party to it and other companies. Google, facebook, whatever. Or let you reach a human who can make a decision of ways to stop it. Youtube could stop it. They could stop it with a Software Technique and human techniques. But if you cant get to anybody, how can you ever do anything . Listen to them say after the fact that we take this very seriously. They did not take it seriously at all. We reported it, like i said, maybe 100 or more times. Every day, every night i should say, we reported tons and tons that were still up. To this day, there are still some up. Emily the apple cofounder steve wozniak. Much more to that interview we will bring you later. Twitters results, strong user growth. Also what Big Tech Companies are facing on antitrust next week. This is bloomberg. Emily twitter among the top performers in the s p 500 after the Company Reported strong user growth, but didnt quite meet the bottom line. Joining us is mark mahaney of Rbc Capital Markets who covers the company and has a sector perform rating on twitter. This is the Second Quarter in a row twitter has hit a record daily active users. How optimistic are you given we could assume a lot of this has been driven by the fed and perhaps i the upcoming election and we dont know if the growth will hold up toward the end of the year . You are right, we dont know and neither does the company. They contributed a Record Number of what they call daily average user growth. They attributed that to improvements in the product, and there have been improvements. I think the feed is more relevant and suggestions are more relevant. They have done a series of things that make it easier to follow topics. There have been product improvements so theres no doubt that this like a lot of other internet content sites and social media sites have seen a surge due tos shelterinplace restrictions and obviously, this was a news heavy period, especially with civil unrest. They had a couple of tailwinds and you would have to assume those will temper. The company has been putting up good numbers i would say for the better part of two years. Monetization. Been emily lets talk about advertising. Ad sales down 19 . Also this ongoing facebook ads boycott and you wonder if twitter has gotten dragged into that as well. How long do you expect this contraction in the ad market to last . It should probably last a few more quarters or until the end of the year. The investor question is could twitter and other internet ad platforms like facebook and google and snap and pinterest, are they going to see you shape recoveries or vshaped . Thats what is causing trades in the stoxcks. What we are seeing is what looks like for twitter and snap to be relatively slow recoveries. They say they have exited june with the ad revenue down 15 . The exited march, ad revenue down almost 30 . It is Getting Better but at a relatively slow and gradual pace. Theres no clear sign of a vshaped recovery in internet advertising at least for twitter, nor for snap. Emily meantime, i want to get your thoughts on content. Obviously, twitter has taken a stand the last couple of months on President Trumps posts, something they had not done before, putting some of the president tweets behind a warning after the president basically threatened violence on the american people. That rankled republicans. On the other hand, you have facebook not taking a stand at all, letting them stand as is. You have conservatives who are not happy about this, including one who is now asking for jack dorsey to testify. Formalvent set a invitation as we understand, but drawing twitter into these conversations about antitrust beginning next week. How big of risk is that . I think its almost a permanent risk. Theres no question that twitter, facebook, instagram are extremely popular and therefore extremely powerful media platforms. We have not seen this with traditional media in the past. There is the ability for these platforms to be manipulated for political purposes and other purposes. Theres no question that if you allow realtime content, it is going to include a lot of malevolent content. There will be hate content. You have to do everything you can in terms of investing in Artificial Intelligence to route it out. It also requires an enormous amount of monitors. Facebook has been willing to invest in this. It is unclear that twitter has been. I raised this with their Management Team on the Earnings Call. Do you feel you are investing enough given the responsibility of the platform . Are you investing enough to keep the platform safe for people . I am a little skeptical of their answer, but it is a hard challenge technically and financially. Emily you covered three out of the four Big Tech Companies on capitol hill next week, including facebook, alphabet, and amazon. How big a risk do you think it is that this company these companies could get broken up . How big of a risk is future regulation . I think it would be a relatively small risk, but i would not have expected two years ago to see the ceos of all these companies brought up to capitol hill. Part of the risk is rising. We have already had fines imposed. We have had limits on their ability to do largescale acquisitions. And we may well see some Business Practices change. There are a few cases where they are at least inherent conflicts of interest. Amazon owns the commerce marketplace and competes in it versus third party sellers. Google owns the Online Advertising marketplace and competes in it versus Third Party Publishers and ad buyers. There are inherent conflicts of interest whether they have been exploited or not by amazon or google is a separate question, but there is the potential for abuse and that is what regulators should watch. I dont think theres an antitrust question to be made about facebook. The issue should be more about the responsibilities they should take in moderating or censoring content. It is a slippery slope with of this. On both sides theres a fundamental difference in facebook and twitters approach to political content. Rightt sure one side is versus the other but there are fundamental differences. By. Y mark, stand we will continue this after a quick break. I want to get your thoughts on netflix as well as another company you cover as we stand by for the president to start that news briefing at the white house. We will be right back. This is bloomberg. Emily we are back with mark mahaney of Rbc Capital Markets, who covers most of the Big Tech Companies including facebook, amazon. , and the ceos of those companies will be appearing on capitol hill monday to testify before the house antitrust subcommittee. We have talked about Regulatory Risks. Do you think anyone of those three phases more Regulatory Risk than the others . Amazonink google first, second, and facebook third, although i do think when we say Regulatory Risk, antitrust risk is really google and amazon. , speech content risk, its facebook, so there are different risks. I stick with my guns on this. I dont think there will be a breakup of these companies. I think you will just see fines and business practice restrictions imposed. Emily why do you think google faces the biggest risk . I think two reasons. One is that in its core business search, it has an extremely strong position. Google would account for 85 percent, 90 of the globes search revenue. Is somebody with extremely powerful market share, much higher than facebook. You could also point to facebooks rising tictoc tiktok. Amazon, you could do the same thing when you about walmart, etc. The second reason is there is an inherent potential conflict of interest with google owning doubleclick. There is an ad marketplace that it owns and operates and competes in as both a buyer and seller of added inventory. It tois the potential for tilt that marketplace for its advantage. There is an inherent potential conflict of interest. There is potential conflict. Those would be the reasons why. I think it is most likely to be investigated. Emily i want to talk to you about netflix as well. We have seen soaring subscriber growth earlier in through the year and into the pandemic this past quarter. Didnt meet expectations. A lot of investors were disappointed. We could assume perhaps subscribers would have added in the latest quarter were pulled forward to the quarter before that. For is your outlook netflix considering we are not coming out of the shelterinplace it seems anytime soon . I think netflix will emerge from this as a structural winner. I think im sure there was some pull forward, but i think all income of the Value Proposition of streaming video to the home, it is strengthened by this crisis, and netflix will prove itself to be better positioned than other streaming services. There content and new originals will be richer and deeper in the back half of the year than other companies that were not able to get as much out of production before covid shut things down. The final thing that i find interesting for netflix is i think they are two years ahead of competition in terms of where they are developing content for. For international markets, we have tracked what we call 130 local language originals, content developed purposely for the polish market, mexican, indian and japanese market, whereas most of the big streaming competitors are still just producing content for the u. S. Market. I think the majority of the growth, the vast majority, is international markets. Netflix is in a better position for it. I like their fundamentals. The near expectations create a small buying opportunity. Emily how concerned are you about content . We heard from disney minutes ago. Hey are pushing back mulan which was supposed to premier in toy, that was pushed back august, and now even further. We know content production has been stalled in hollywood. What does it mean for netflix . And there is a huge library new were original shows, but many of us are going back in time and watching things we might not have discovered before, but it is not tiger king. Actually mark, President Trump is walking to the podium now. We are going to have to leave it there. We will talk offline about that. Trump i have reminded people the importance of masks when you cant socially distance in particular. The strong message has sent out to young people to stop going to crowded bars and other crowded praise places. Yesterday we made the amazing announcement for plans to protect nursing homes, residents are working hard on that. We are working hard all over the country. Contracting with pfizer, we made a big, beautiful contract with pfizer. We have a lot of companies that are very close to produce a vaccine. I wanted to come out again today to share some additional news with you. This afternoon, my Political Team came to me and laid out our plans for the convention in jacksonville, florida. Its a place i love. I love that state. The drawings look absolutely beautiful. I never thought we could have something look so good, so fast with everything going on. Everything is going well. A tremendous list of speakers. Thousands of people wanting to be there, in some cases, desperately be there. They wanted to attend. People making travel arrangements all over. The signs, and excitement, really topoftheline. I looked at my team and i said the timing for this is not right with what has happened recently, the flare up in florida. To have a Big Convention is not the right time. It is really something that for me, i have to protect the american people. Done. What ive always thats what i always will do. Thats what im about. They said we could make this work very easily, we have great enthusiasm, incredible enthusiasm. Even the polls say about the most enthusiasm they have seen. We can do it safely and responsibly. I said theres nothing more important in our country than people safe,g our whether its from the china virus or the radical left mob that you see in portland, where i want to thank Homeland Security and others for doing a fantastic job over the last few days. They went in and people were out o