Six russian Intelligence Officers are charged in paszek attacks. Our u. S. In past tech attacks. Our u. S. Elections at risk . Fake reviews are spiking. How the ecommerce giant is running damage control ahead of an unprecedented holiday season. Stocks falling amid no stimulus plan on l. Senate Majority Leader Mitch Mcconnell saying he would bring a vote to the floor tomorrow or wednesday. Democratic new york senator Chuck Schumer says the republican plan is unacceptable with key parts of the economy slowing down and no end to the pandemic insight, what is investor appetite. All of that against the backdrop of these stimulus issues. Not so good. Abigail so good, and not a great day for wall street either in anticipation of difficulties here. After the close, futures right now. It will be interesting to see right now if there is any reaction. The s p 500 index in the premarket, up about half a percent. Big tech getting hit even more. Investors wanting out of those names such as apple, amazon, facebook. The vix, the nasdaq higher. Amazon, we were talking about it last weekend. In a row. Days a down week even though the nasdaq had closed up for rate fourth week in a row. Perhaps suggesting some are a bit nervous with what the results are around the amazon prime day event last week. Of course risk off tone relative to stocks. We have bonds also lower. There was not a haven bid. Maybe not quite as risk off as the declines suggest. It is the worst day for the major averages in about three weeks. Emily it is a big earnings week results afterwith the bell, stocks falling after our a bit. . Hy a down day abigail in terms of ibm, i think investors think they cannot get out of their own way. Down just 0. 8 . Earlier, down 1. 5 . Revenues and earnings both alling in terms of growth on yearoveryear basis. Earnings down by even more, about 14 on a yearoveryear basis. The guidance is lackluster. Investors hoping that they will get it together, turn it around. Report,k going into the this tells you the story. Of still unable to get out its own way this last quarter. Really no exception. They we will be following spinoff they are working through. Abigail, formuch, that round up. I want to stick with tech earnings now. Netflix reports tomorrow. Discuss, mark mahaney. Netflix has been a pandemic winter but last quarter did not quite meet expectations. What are you expecting this people areven that watching netflix, given that many of them were several months ago . Mark you are right that this will be a high bar quarter for netflix. It is widely perceived as being a covid winter. The question is how much more sustainable these trends. Million subsor 2. 5 for this september quarter. Right now, alltime highs. , a number that is almost double the guide. We think if they do that and they guide constructively for the fourth quarter. The other question that people , it is listening for pricing. Worldwide price increase. We will see if they can announce one in the u. S. Our guess is that it will be eight 2021 event. It will be a 2021 event. Emily some of the moves the competition is making, i am thinking about disney, the restructuring to give streaming more of a priority. What does that mean for netflix . Mark i think that netflix is highly insulated. Survey work we have done shows that increasing numbers of consumers do not just want to buy one streaming service. 50 want to buy three or more. What is replacing the cable bundle is the streaming bundle. Netflix is almost certainly going to be one of those. It does not mean disney has to fall for netflix. I think both of these companies can continue to grow really well. The other thing to keep in mind, unfortunately, a lot of our Entertainment Options are offline Entertainment Options. They are still limited. Change or Theater Theater chains open and close. Some of the biggest hits of the year, new launches like the next James Bond Film come or pushed often next spring. Continuing a tailwind to netflix as far as growing and retaining subs. Emily looking out at the earnings landscape, you cover facebook, you are looking at google. Abigail mentioned, we have seen a huge runup in these stocks. Greater antitrust scrutiny. Congress paving the way potentially for these companies. How big of an overhang is that . Mark i think if you focus on one big risk or opportunity for s sector, the big risk facebook, paid 5 billion in fines related to regulatory issues. Issue become a bipartisan. Regulators, congressmen, the level of competitiveness. There is this belief despite this clear evidence, it is starting to take away from instagrams thunder. The Regulatory Risk is rising. It will probably not limit earnings. Multiple,ly the pe not the e. One positive that facebook will participate in is the rise in social commerce. More and more people shopping on facebook. Pinterest, instagram. Facebook is a great derivative off the social commerce play. Emily speaking of ecommerce, what about amazon, another company that you cover . We are heading into an unprecedented season. We are covering the rise in fake reviews later this hour and how amazon is putting out the fires that are inevitably coming from increased demand. Mark amazon, they have probably been a company that has benefited most from covid. Accelerating with amazons ad Revenue Growth coming down. Building all of that distribution capacity. A million square feet of distribution alone. Commercial real estate has become less expensive because of covid unfortunately. Amazon has won a couple of different ways. I think they will have more supply this fourth quarter. It will be a Covid Christmas but i think amazon will be a major beneficiary because of that. Coming up in a matter of weeks to one of the most critical elections in our history. Happened thiswhat time around really matter, given the overhang that facebook has been facing from 2018 . Has although facebook played it down, the advertising going on, both of us live in california. For prop 22,g ads the major ridesharing initiative. Congressional senatorial campaigns in newsfeed. It is still a small percentage of their revenue but every little bit helps. On the negative side, there is andrly a lot of scrutiny facebook about the elections. Clear result and there is not evidence of the misuse of the facebook platform to skew the use one way or to facebooks credit, they did react with a spent hundreds of millions of dollars trying to build up the security of their platform, trying to stop the site from orng misappropriated exploited again. And no in fact happens news happens in terms of facebook and its impact over the election, you will see the multiple go up. Emily that is a boldly optimistic prediction. We hope you are right. Electionnt to have an that does not get undermined and has integrity. So we will see. I will have to bring you back and call you on that coming either way. Mark mahaney, always good to have you with us. Coming up, the hackers allegedly responsible for knocking out ukraines power grid interfering in frances election, and disrupting the Pyeongchang Winter Olympics have been charged by the u. S. More on that story next. This is bloomberg. Six current and former members of russias military Intelligence Agency gru have been charged by the u. S. Justice department for apparently carrying out some of the worlds most destructive pack attacks from 20152019. Profilee some high attacks on some highprofile events. What happened here . Today, the u. S. Justice department announced that they were establishing attacks carried out from 20162019 carried out allegedly by russias military Intelligence Unit, both current and former. These attacks range from targeting the french election, the winter livex, knocking out ukraines power grid, and these attacks that spread malware tound the globe and led millions of dollars in damages. Broader National Security policy in enhancing u. S. National security and cyber space. Isly my first thought clearly, hack threats from rush are alive and well. About thebe worried election coming up in a number of weeks . They said that this indictment was not particularly send a message to russia before the election. The u. S. Should be assured that there will be an election where the vote count has integrity and americans will be able to have their votes counted. Connectionsear between this indictment and the election. The Russian MilitaryIntelligence Group named in this indictment has also carried out hacks on the 2016 election. One of the people the defendant named has previously been indicted by the u. S. And part of the indictments related to the hacks. We heard from microsoft that attackers associated with this unit were caught sending officialsmails to related to the election. Details about what russia could be up to, trying to understand russias tactics. Emily the bottom line is that the threat on this upcoming election is very much alive. In terms of what we see, yes. We have heard the intelligence havenity say that we seen evidence from the private sector that this military Intelligence Unit is associated with individuals who have vulnerable targets. And we heard from facebook and twitter officials that russian troll farms from last election have been active in this election. We have seen evidence. ,ut even in the face of that the integrity of the vote count remains secure. We will continue to follow. Thank you so much. Coming up, we will take a look at snowflakes performance hitting the public market. That is next. This is bloomberg. Emily it has been less than a month since snowflake debuted on the public market, the Biggest Software ipo in history. The company is already valued at over 67 billion. A 282 a buy rating at million price target. How does snowflake make good on this more than 100 runup on day one . How does a Company Trading at 40 times revenue make money for investors . They have to do a lot better than people expect. A great example of this happening is if you look back at zuma. Inn i initiated on zoom 2019, it looked like it was trading at about five times revenue. We thought they would do about 700 million in revenue this year. Instead, they will do about 2. 5 billion. It turns out they were trading at 10 times. It is the bottom line. These companies coming out of the ipo need to do a lot better than people think they will. Emily the runup is warranted then, in your view . Pat in this case, i think it is. First of all, snowflake is taking a totally different approach to the whole database industry. Secondly, it is not like you have to guess how big this market is. 8 billion market that is ripe to be disrupted. The players in the space are sold oracle, ibm are so old. Oracle, ibm. At the end of the day, with the software companies, you are really betting on management. Emily what if we all go back to work in six months and this remote work phase is behind us . There is kind of this wondering when it is safe to go back if companies are going to be changing their tune. I dont know about you. I am pretty zoomed out. Enabledanies that have zoom, slack,e, so and the Security Companies that securelped keep everyone as they are working from home, cloud flare, those stocks will probably get hit. Then you have to start thinking about the day two stocks. The companies that have not benefited as much that should be able to come back to life. There are no particular benefits of snowflake in terms of people working from home. Emily what are the other companies that you are watching that you think will see the extreme benefits of this and lasting benefits to boot . Pat one of my favorites here is doc you sign docusign. I am looking for someone who has benefited from everyone working from home and yet where those benefits wont go away. N, atu think about docusig first it was a way to make it so that you could get work done from home more easily, you dont have to get a contract and sign it. Realizing,e started when we go back to work, this is a way to keep things safer at work because we dont have to hand each other pens. Signing, iove to docu dont see it going back to the old way. Headwinds . Are the what are the risks things dont stick . For mye p issues universe right now, for the software industry, the fact that is Trading Company at 19 times revenue. That is an alltime high. Just as a reminder come in april, that number was eight. We have gone from eight to 19 times. Part of the reason is that it has been perceived as a safe place to be. If growth slows, that multiple will compress a lot and enterprises dont know what is going on with the election and will go on with spending next year. Emily will have to leave it there. Always good to have you on the show. Coming up, washington is about to take on big tech head on. Emily welcome back to bloomberg technology. Withe is tapping law firms antitrust as it prepares to fight monopoly abuse lawsuit in the works by the doj, which are shipping up to become possibly the biggest antitrust case since microsoft in 1998. Joining us is our Bloomberg News antitrust reporter. David, we have been waiting for this for weeks. When is this happening and how big will it be . David yeah, you are right. This is the case that everyone has in washington seems to think is happening any day now and we have been saying that for a number of weeks. I do think this is the week that will be filed by the just ice department. As you say at the top, it is really kind of a watershed techt for antitrust and because the last major monopoly case was 20 years ago in the microsoft case. U. S. , since that, in the that has been a different story in the eu, but in the u. S. , antitrust have been pretty much hands off when it comes to big tech companies. They have gotten a lot of criticism for that. So this is really a complete reversal of that approach. Were also coming up on a major election. There could be a changeover in who is running the justice department. With the election or a change in power have an impact on this . David yeah, i think that is an interesting question because, of course, we are two weeks or so away from the election, and even if this case is filed tomorrow, its not going to go to trial for quite some time. Maybe a year from now. Action in the of courts that have to happen before we get to that point. If there is a change in administration, then it would be that a Biden Administration that would take over the case, and presumably, they would. I think on of the big question marks around biden is his approach to antitrust, how much of a priority it will be. It certainly consumes a lot of energy and tech policy at the moment. If he wins, it will be his administrations responsibility to take this complaint that is filed and get it over the finish line. Emily interesting. As we have been speaking, the Vice President mike pence has been on foxbusiness talking about this. He says the administration will not allow big tech to block the truth. That gives some position on where this administration stands. David, i know you will follow that story. As soon as that breaks, we will have it for you. Shares of the fuelcell truck start up nikola rising at the start of trading today after jp morgan set a Strategic Partnership with gm is still likely to go ahead. The original deal was for gm to build a futuristic, Hydrogen Powered pickup truck for nikola but the deal has been in doubt since the short seller report after the deal was announced. Joining us to discuss is ed ludlow who has been following this story. The fraud allegations made by the short seller pretty extreme and through the g. M. Partnership into question. What is the latest we know about g. M. s intentions to move forward . Ed they said on friday, the talks continue. Nikola say the talks are continuing. They wouldnt give me any more details other than to say the badger is at the center of the talks. When the deal was first announced in september, the Biggest Surprise was the deal went beyond this proposed pickup truck and its all General Motors provide the Fuelcell Technology for the core of nikolas businesses which are Hydrogen Powered semitrucks which it planned to build in its own factory in arizona. That is the core of how nikola plans to make money. Weve moved on, it has gone beyond the idea of a pickup truck. Nikola has always said without an automotive partner, it would not build a pickup truck anyway. If they fail to close this deal with g. M. , it could further impact the credibility after two difficult months for the company because gm has this Global Manufacturing experience, global command of the supply chain and wall street saw it is a real plus towards nikola achieving its core aim which is Hydrogen Powered fuel trucks. The ceo toldaid, you last week he has a plan if the g. M. Deal does not close. What is that plan . Ed nikola has had a coagreement since 2017 which included the development of Fuelcell Technology. In the coexisting prototypes, they used a fuelcell. In europe, the debut trust they plan to build next year in germany is a factory powered semitrucks which is in a joint venture with cnh industrial units. They have the pieces in place to move forward with the core of their business which is first to build a factory electric semitruck in europe and later, once it is built, build a fuelcell truck. If the deal with gm does not close, they have a backup. What sources have told me is internally, the Fuelcell Technology is seen as more mature and the preference is there going forward. Ed ludlow, thank you so much for that update. We will stay tuned for more developments. Coming up, botched ballots. The 2020 president ial election may not yield a clear winner either election night. Remind you of anything . We will talk about 2000, al goregeorge bush. The director of a new hbo documentary out this week. Is history doomed to repeat itself . Find out next. This is bloomberg. E