Delivering food than transporting passengers for the first time ever. Slightlyes are down after hours. I want to bring it abigail doolittle. I want to start with uber, engagement down 44 . That is the measure of how many passengers they are transporting. What they made in food delivery did not make up for what they lost. Abigail it is an interesting quarter because they beat the estimates but revenues fell for the first time ever. As you were just mentioning, their primary business of ridesharing just not really there. I see get all the time in new york, there are much fewer driven cars out there. They demand simply is not there. Who knows, maybe at least here we will see a little bit of a pickup. But its interesting to see that food did better than ridesharing. It shows you that these companies are trying to adapt to the pandemic. Tmobile put up a big quarter. They beat estimates. They added more than one million subscribers. You were mentioning apple. Nasdaq simplyy keeps climbing. Up seven days in a row now. Record high after record high. It will be interesting to see of course what tomorrow brings. Dayst make it to eight especially after that allimportant jobs report. Emily we are also looking at tmobile earnings. Tmobile now has the number two spot in mobile carriers, which is huge. Shares of spiking after hours. Impressive was an quarter they put up. Than one million subscribers, which is really very impressive. Had a few other earnings reports after the bell, including the online trip advisors. Not surprisingly, the stocks are higher. They have had such a tough time this year. Booking at this point is flat. The estimates have been lowered so much. The expectation, so low. It is a little bit less bad, especially some of the commentary coming out saying that the trends are perhaps improving. Zillow up 9 . That is one of the Silver Linings of the pandemic. People are embracing online shopping. On the year, we see this trend. Online travel agents down on the gear. Nasdaq 100 up solidly. Zillow up 56 . They have this and havenots the haves and havenots. It is clear that investors and traders are Rewarding Companies that can adapt quickly. Emily thanks so much. We will be back checking in with you tomorrow when we see the impact of that jobs report. Meantime, i want to get back to uber. The pandemic wreaking havoc on ubers operation. Revenue declining to 2. 2 billion. Delivery overtaking ridesharing for the first time in the companys history. Highlights,re the or the low lights that you would pull out here today . The major highlight is that while round sharing while ridesharing is down yearoveryear, it is starting to recover. In july, a decline of about 50 , compared to about 75 for all of q2. There is improvement sporadically. The real bright spot is ultimately the eats or delivery business, which grew in this quarter as people couldnt go to restaurants and were looking to feed themselves and support local businesses. Emily that said, given the uncertain the ahead, Companies Pushing out returns until early next year or longer, the demand for ridesharing is not going to come back anytime soon. And is food delivery really going to make up for that . Eric food delivery cannot 100 makeup for the loss in rides. But the two businesses work against each other. When lockdowns are imposed, eats does a little bit better. And the ride to do pretty horribly. But we are seeing recovery in many of their main markets, and europe, and in some markets in the u. S. As we look at food delivery, there is a Huge Consumer behavior story. Prepandemic, food delivery was really a luxury good for people who had quite frankly too much money to spend. Now, options have really increased across different geographies including in the suburbs. For you look at the picture 2021, the shift to food delivery through these apps has really accelerated. That is a good sign for them moving forward into the future. Emily what do you see for ridesharing longerterm . There is going to be remaining concerns about being in close quarters with a complete stranger. You have positive trends in private car ownership, people wanting to buy cars because then they have their own private methods of transportation. Even scooters are doing other than we thought because it is open air. It seems that ridesharing than is last on the list in terms of choices. Eric i would really consider Public Transportation to be last on the list and that is how most people in large cities get to work on a daytoday basis. When we look at what has been happening with regards to work from home policies, people will not be able to take a crowded subway during rush hour. They may be able to take they may be willing to take a rideshare. When you look forward to 20212022, we have seen a shifts, because it is likely they will have fewer cars per household. Over time, that is a net and if benefitver and net for uber and ridesharing in general. Emily what can over due in the meantime . They are building up the food delivery business. They are in the process of acquiring postmates. What else can they do to essentially diversify . Online grocery is a massive opportunity. Players, a few major instacart and amazon. When you look at ecommerce penetration of total grocery retail, it is next to nothing. There is a lot of room for them to grow, especially as the pandemic has changed behaviors and made online pandemic delivery viable for people for the first time. If you noticed in their Financial Statements to be changed what was called the eats segment to the delivery segment. I would expect that Online Grocery is a really interesting growth area for them, especially as it will allow them to partner with some major regional chains. The unitedrocery in states is highly regional. People are loyal to their local chain. Theser can partner with local companies, they do have an edge over more national retailers. Emily interesting. Always good to have your commentary here on the show. The booming gaming industry is making a big comeback among the pandemic and the changes in transportation. We will talk to one ceo who is navigating that. This is bloomberg. Covid19 has had a major impact on businesses around the world. But, some second ears continuing to gain some sectors continuing to gain. The gaming industry has seen a sharp rise in customers. In particular, mobile gaming. That includes zynga, just reporting earnings yesterday, beating expectations across the board. Ever quarterly revenue and bookings. Best operating cash flow in eight years. Is that all driven by the pandemic . It certainly had a major impact. If you look at our growth rate before everyone started sheltering in place, we were running at a pretty good clip. As people took measures to protect themselves and shelter at home, when you are social distancing and cant be with someone, the next best thing to do is to play a game with them. It was really amazing to see the socialization happening in games. We saw some products that saw 400 increase in chatting, gifting, and sharing. Games are starting to become their own social networks. Our teams have all transitioned to a work from home environment. Fortunately, we have not missed a beat. The teams have really kept up with the pace required. Emily what does this all mean for your outlook for the coming quarter and the rest of the year , given that it looks like lockdowns will continue. I am still doing the show from home. Is that more good times for you . The issue for us, as we look into the second half, there is the potential for more shelterinplace orders. What is positive for our company is we make free to play mobile games, which are really resilient in tough times. The work that we do, the fact that we get to entertain people while times are tough is just our small part in trying to make things better. Enough, wefident started the year with a guide of around 1. 75 billion. We are feeling good about our trends. My kids are doing some more gaming. They are still quite young. Times, thatof the is what they are enjoying. What is some advice for parents about how we can make this time productive . We want the games to be more than entertaining. We want them to be learning and their brains to be developing. I wonder how games can be part of that and how we prevent things like addiction from happening. Frank moderation is the key. At home with my three teenagers, it is kind of ironic when their dad tells them to stop playing games, and that is my living what is great about now is there is so many Multiplayer Games and games that are very social, it is a great way for kids to hang out, whether it is in roadblocks, words with friends. The ability of them to play together, communicate, keep each other uptodate, and frankly to have some fun, and moderation, that can be a really help will thats really healthy thing. Emily google and apple left and working to increase their positions in the industry. I wonder your thoughts on that given the antitrust scrutiny . Frank android and apple have created an amazing platform reaching 2. 5 billion customers worldwide. They handle issues like billing and other things. At the same time, they are starting to build out some of their services. While it is sometimes disconcerting to see your platform partner create a game to play against. On bringingcus in the best games to bear for our players. And competition keeps you sharp. It keeps more choice available for players. Inwork with apple and google a very productive way. It is a collaborative relationship. Things that are working and not working. We try to improve the overall ecosystem. Emily what about other platforms like tictoc for expansion like tiktok for expansion . Didk this quarter, we extend our partnership with snap hook. Firstually launched our amazon alexa game, called letter pump. It is a purely verbal game that you can play at home with alexa. We are experiencing we are experimenting on other platforms. The gaming business, it is all about new platforms and reaching new players. We are excited for things like new ar platforms. Position gets into a where it understands its future better, perhaps they can be a Gaming Platform as well. Emily you also just acquired a turkish Gaming Company and the ultracasual games space. And are ultracasual games why do you want to expand there . Sounds like that might be more my speed. They basically are universal ideas that appealed to the mass market. It is like untying a knot or do a puzzle. They are very accessible to people. They dont last for very long. You play them in short bursts. What they do is generate massive audiences. Company. Istanbulbased it has produced the number one and number two hyper casual games on the app store. Is 63total audience base million. When we see what they build and how it fits with what we build, there is a really nice connection. They can acquire users cheaply for us. We can expose them to other games. As we look at this next chapter of growth for our company and the mobile industry. Audience, scale, and a Scalable Network will be increasingly important. Emily thank you so much for stopping by. Microsoft could looking to buy more than just tiktoks u. S. Operations . Perhaps all of the company instead . This is bloomberg. Microsoft is reportedly ,hasing a deal to buy tiktok all of its global operations, not just operations in the United States. Microsoft is also said to have discussed an agreement to allow them to have a whole year to separate tiktok from its Parent Company bytedance. Kurt wagner, what is your take on this report . We spoke with sources this morning and actually got some pushback. What we were told is that the two sides are still discussing what microsoft had announced over the weekend. That the company is looking to buy the operations in the u. S. Including canada, new zealand. I think it would make a lot of sense for microsoft to be interested in tiktok globally. Emily sounds like we lost kurt wagner. Talking about microsofts continued talks with tiktok. The Financial Times has reported that microsoft is considering buying all of tiktoks operations. They are getting some pushback. Meantime, we will go to a conversation we had earlier today on Bloomberg Television with the ceo of sonos. Diversifying our supply chain to talk about the tariff issues. We have had a plan for a long time to diversify. I think the good news on that front is that we have actually been given an exemption. That is something that will flow to our bottom line, which is great news. Impactedobviously was by the pandemic. They shut down some of the operations there, which has push into malaysia. We will be there up and running fully by mid 2021. They talk to us about , whatever you want to call it, with google. Are you confident that you can start to get royalties from google . We are very confident. Our secondwe signed agreement with a competitor that is now paying us a royalty. We are 22 on that front. We are very confident and very is righthat that trial around the corner. We are trying to stand up for all small, innovative Entrepreneurial Companies that exist in the face of companies trying to infringe on others intellectual property. We think it is the right thing to do for our people from all of us, and all of our investors. Romaine you guys were pretty early to this home connected speaker market. I complement you on the Product Placement over your shoulder there. Is this always going to be just a home product . Is there plans to do things beyond the home . Patrick you have seen that we have expanded a partnership with ikea. We have collaborated with them on new products. We recently brought out the move that you see here, which does allow you to go outside. It is portable. You can imagine, we see opportunity. Emily patrick spencer, the ceo of sonos. Coming up, more of bloomberg technology. Facebook finally taking down a post by President Trump. We will tell you why the social network intervened. This is bloomberg. Emily welcome back. Im emily chang. Both twitter and facebook blocked accounts related to President Trump after they shared a video of a mock news clip in which the president claimed that children are almost immune to covid19. That is false. Children are not immune. This is the first Time Facebook has taken a direct stand on one of the president s posts. I want to bring in sarah frier, who covers facebook. Tell us what happened here. Tried tocebook has draw a line in the sand when it comes to coronavirus info. We have seen a lot of backandforth with facebook whether trump violates other policies, like inciting violence or misinformation about the vote. Facebook wasase, able to take a stand. What this is a reminder of is that these tech withnies, if they align what the World Health Organization and the cdc and epidemiologists are saying about say thatus, they can misinformation about it contributes to world harm and they can take it down, where as if they were to take a similar action on a post with anything to do with politics, they could be accused of bias. This, an response to member of the Trump Campaign tweeted, Silicon Valley is biased against the president and only enforces the rules in one direction, despite the fact that facebook has actually been more lenient on the president s posts than other tech platforms. Talk to us about how this fits into the broader facebook narrative. A big controversy has been facebook not taking a stand on political speech, not taking a stand on political advertising. Do you sense that any of that is changed has changed . Sarah he is saying that because he knows thats exactly the kind of thing that facebook fears. They dont want the republicans to call them out as biased. So many of their policies are tailored around trying to protect the company from that risk, because trump is in a position where he could take regulatory action against facebook at any time. We have seen that right now with tiktok. If there is a platform he does not like, he can bring down the hammer. These claims of bias, although they have no basis in fact, continue to keep facebook president not just the , but a lot of other republican more extreme news organizations like breitbart. Just a that this is constant dance they have where they are trying to make sure that they dont decrease their risk of regulatory retaliation. Emily also today, facebook banning advertising from a pro trump super pac. No word on how long the band will last. What do you make of that . Sarah i think they are trying to show that they are going to take aim at things that are either coordinated in authentic behavior or coronavirus disinformation inauthentic behavior or coronavirus disinformation. They consistently say to the media, we are banning things based on their behavior, not for their political leaning, not for who they are connected to. They are going to try their best to reframe this decision that has nothing to do with trump and everything to do with these entities doing a violation on the platform. Emily meantime, facebook has also announced today that they removed hundreds of accounts authentic behavior, some of that politically which goes behavior, back to the heart of the original problem in 2016. Clearly this is still happening. Does facebook have it under control . Entities, even domestic, have learned from russias tactics in 2017. All you have to do is establish some level of trust in a community, and you can start to see that Community Information in whatever direction you want, or you could stir chaos. I was on the call with facebook today, talking about this removal that theyompany is saying that keep coming back and a lot of linked toetworks are networks that they took down previously and are trying to check whether they have resurfaced. Certainly they have, and a lot of times it is just a matter of finding that new strategy, seeing whats ahead. But i think it is going to be quite difficult, because when it comes to domestic information, arerisk that bias you talking about, that perception of illegitimacy on the platform if you deal with something that is opinion. I think they have not figured it out, and they are going to have to keep changing their tactics to address not just what happened in 2016, but what is new this november in 2020. We may not have seen the extent to which the problem has gotten out of hand yet. Emily bloombergs sarah frier. Less than three months to the election, something we will continue to report on. Thank you. Now back t