What it is, and why it is wreaking so much havoc for social media companies. And it is halloween eve. Night. Iller, but triller we will have the executive chair of the social media platform sued by tiktok. Those stories in a moment. Also this hour, we will be speaking with the ceo of overstock. Com on supply Chain Technology ahead of the busy retail season going into the holidays. Later, i will have an interview with the ceo of blue apron, which reported results yesterday. Dropping, u. S. Stocks capping their biggest weekly route since march after tech earnings disappointed investors concerned the slowing economy will dampen assets. Lets get to Abigail Doolittle in new york. It was a crazy week just ahead of the election. Walk us through your roundup. Abigail yes, it was a crazy week, a wild week. Two down weeks. That is another piece of the story that the bears have been at it last part of this month. The nasdaq today not surprisingly with the text selling that you were alluding to really taking a beating, down 5. 5 on the week. The worst week since march. Lots of factors at hand. The big tech reports. Also uncertainty going into the election. The vix indicating it could be a contested election. Of course, the virus. Investors, they have pretty much every factor you could to deal with. Some longterm investors saying this is the wildest market they have ever seen. If we take a look at on the month before we dig into the tech earnings and the effect on the market today, the dow down 4. 6 , the worst month since march. That is the degree of selling on the Dow Jones Industrial in some of the cyclical sectors. Crude plunging down 12 , its worst month since march. The risk assets a lot not just in stocks but also commodities. That is a tell on the economy and at this point to the idea that folks are worried of the virus, resurgence, potential lockdowns that could come and hurt the economy. The vix, i was mentioning the spike in volatility. The nasdaq 100 vix back about 40. Investors bracing for more. One expert today telling me the vix is very much suggesting a contested election is ahead. Finally, not quite fitting this risk off puzzle, nothing at all, the 10 year yield back above its 200 and moving average for the first time 200 Day Moving Average for the first time in two years. Bonds are selling off. Risk assets and bonds selling off. October really a pretty wild month. Overall, seems to be a bit of a repricing of risk. The yield curve climbing. Emily lets talk about the big cap mega stocks. We saw alphabet rising today but facebook, amazon, and apple down despite positive results for all of them. Some negative signs from apple when it came to the iphone and china, but nothing to that that they said they would not turn around in the december quarter. Why did investors react negatively . Abigail brutal day for tech. We were talking about this yesterday after the earnings came out. This has gone too far, too fast. Investors want perfection. You can make the case they went way too much up after the june quarters. They were not as spectacular as reaction. Now you have good quarters with pickup here and there. Apple in particular, that is more than a hiccup in my mind. The fact that there iphone, their premier and primary product, missed estimates, fell 20 . China down. That is without the iphone 12. Lets see whether or not that happens in the Fourth Quarter. , some want to put money where their mouth is in there is no outlook. The fact that they are seeing the Fourth Quarter will be ok quarter and saying it will be ok. Twitter is a really big down one on you users being lower. Alphabet was the one bright spot , emily. Emily all right. We are going to hear from the twitter ceo later. Iphone,came to the the cfo told me the iphones were not in this Current Quarter so we will have to see if they can make good on their projections on the call that december will be better. Ok, Abigail Doolittle, thank you so much. Have a good weekend and get ready for a potentially wild one next week with election day. Getting back to tech, the Worlds Largest tech company is notching big corridors this week. Aided by the pandemic, which spurred demand for things like smart phones, and cloud computing. Up was the outlook for the year. We are joined by mark mahaney. A lotainty was a word of executives used on their collars yesterday. Does it concern you these companies are not giving forecasts or have sort of murky views of what is to come . Mark i think abigail set it up right. Some of these names, particularly in amazon, facebook, and twitter, expectations were superhigh going in. They needed to do everything right. We actually thought amazon and facebook did everything right, except theyre staying very aggressive in terms of investment. It was the operating income or profitability outlook for facebook and amazon that disappointed. Google or alphabet, expectations were super low. Easier for that stock to outperform. They did not put up fundamentally better results. Finally, twitter was just a different case. It is not just the mau shortfall. There is an ad product delay. A constant theme at this company, the inability to ship product on time. That is what got people to solutions about the stock that caused a very negative reaction. Emily what is your outlook postelection knowing that there could be civil, knowing there could be contested election, knowing that uncertainty is sort of the name of the game . Mark from a stock market perspective, i guess all investors hate to have uncertainty, but we will get certainty at some point. I dont know if it is days or weeks. I hope it is not for more than that, emily. But when that happens, you will get a valley in the market. My guess is it will be pretty substantial when you get that certainty. Either way in the election, the market just wants the certainty of it. I am not sure that a win from either side is dramatically different for tech stocks other tax rate issue between the two campaigns. One other thing to keep in mind as we come out of covid, we have structural winters here and we have known this for two quarters now. Companies like netflix and amazon and chopper fiber winners. Now the new news is some of the ad names as well as are winners. They are doing check mark recoveries, which means the growth rate is faster than precovid. A fundamental shift of ad dollars because of covid. There will be some fundamentally stronger stories in here that the markets will sell off these stocks, creating great buying opportunities. Emily how big is the Regulatory Risk all of these Companies Face . Antitrust issues and then twitter facing regulatory issues pertaining to section 230, along with facebook and google. How big of a risk is that . Mark it has become a bigger and bigger risk and it is unfortunate. The one thing that is clear is it has become a bipartisan issue. You had a democratic subcommittee House Judiciary Committee write a pretty scathing report about big tech. And then these hearings we just had earlier in the week on 230, you had some very strong conservative voices also just as critical. Big tech is being bashed by the left and right. I dont think it will lead to any forced sales breakup of these names. It will certainly limit and midscale acquisitions by these companies and you can see more aggressive Business Practices like those 30 distribution fees in the apple and google play stores. Those could get hemmed in a bit, which may not be a bad thing. It has become clear. This is a generational change, not a political change. Moreed leaders much concerned about big tech and that kind of power. Emily all right. A big test for some of these companies next week with election day. Mark mahaney, rbc capital managing director. Glad to have you and your insights on the show. Coming up, tiktok bites back. The social platform opens up a new lawsuit against a rival. The latest with an executive at triller, next. This is bloomberg. Tiktok and its permit company bytedance are suing rival video app triller. This comes in response to triller alleging bytedance has been using their technology to grow the popular social media platform over the years. Triller chief executive officer mike lu fired back against the suit, saying tiktok and its. Company by its parent been enriching themselves and their investors at trillers expense. Joining us now is bobby, exec of chair and coowner at triller. Thank you so much for joining us today on the show. You initially sued tiktok over a patent to create synchronized music videos. They are now assuming you. How is tiktok in your view stealing your technology . The pattern is very straightforward. To a dynamicng movement of a video and create a music video. One or more tracks, that is a patent we went out and did the heavy lifting to get approved. Experience isuser built around our technology. In fact, we do not even call them tiktok. Ok because theykp are pickpockets and stole the technology from us. We gave them ample time and access to respond to urban litigation. They said, ok, to respond to our litigation. Said ok and then sued. Emily can you tell us a little more about how triller acquired the patent at issue . We know you got it from a company. Tell us a little more about the history. Bobby well, so that patent was one of trillers initial patents started the whole company. It is the foundation of what triller was built on, and the people who built the patent are the cofounders and creators of triller. Patent. We bought the we had it for a long time. We built our whole business around it. These guys have continuously violated it and stole it, and now they are doing more weird stuff and lying further and changing, trying to shop for venues that benefit them. We dont know why their problem we dont know what the problem is or why they are changing the venue. We are planning to file a motion to move the case where it was filed initially. Emily how does triller differentiate itself from tiktoks platform . Bobby well, i were demographic is a little bit older. Our demographic is a little bit older. We are not stealing data. We are not controlled by the ccp. We have different marching orders. We do not have political agendas. We do not play in those arenas. At the end of the day, our app is a fun app for music , to showcase technology, and for people to share their expressions and voices without any other alter your motive. Ulterior motives. Emily you filed this patent in july and then in august we learned you want to buy tiktok, which for many folks kind of came out of nowhere. To be fair, triller is significantly smaller than tiktok. If they are stealing data, if they are pickpocketing other companies, why did you want to buy them . And how serious was that . Bobby yes, so we were approached by one of the consortiums that has an interest in tiktok. Some of them are american companies. Some of them are not. China is involved in this transaction. It is owned by a chinese national. We were approached by a consortium that said we are interested in buying the u. S. And some other territorial assets of this product but we do not have the expertise to dissect the code. We dont have the expertise to understand how to run this thing. Would you guys be interested in joining the consortium for a potential acquisition . We said sure. We are always interested in a conversation that makes sense. We feel like it has a big user base and the metadata is useful and we would be able to use our recommendation algorithms and our people to run it properly. That is where the conversation started. The conversation continued. I dont know. It is more by tiktok and bytedance. It is just a bizarre thing. We dont understand anything they do. Thinggal teams, the only they can think of is they are desperate and they see there is a lot of fear here. This is one of the best ways for them to really try to change the National Security threat and the fact that they are stealing American Technology into a different story. There is no other logical explanation. Emily we are still waiting for President Trumps attempts to ban tiktok to play out in court. Just in the last few minutes, reportedly, a judge has rejected the commerce departments order to handicap tiktoks technical abilities, which could have really hurt their ability to operate in the u. S. For the time being. But what would be the ideal situation in terms of this trump, china, tiktok situation and how it plays out for you . Bobby i think that is pretty obvious. You know, it is hard for us to answer that because we have such a bizarre path and vested interest in these people and this product. We are not seeing, use triller. Use an alternative. Just dont use tiktok. What they do has been bad. It has been bad for us politically. They get their orders from the ccp, which as you know has no interest in our american they are after global domination. They are capturing everyones information and sending it back. They are making a mockery of our court system. What else can they do to get kicked out of here . American companies cant operate in china. Our friends at hooper basically got arrested until they give the company over to the chinese government. How is google doing in china . How is facebook doing in china . It is abnormal the amount of things that bytedance and tiktok have gotten away with in this country. And we are still sitting here talking about what is going to happen next. We know what should happen next. Emily so this filing of tiktoks lawsuit against you, and i hear what you are saying, you have hundreds of millions of users around the world. You have been in talks about a potential merger that would lead to triller going public. This latest lawsuit from tiktok negatively impacted those plans . Bobby not at all. In fact, it has made our investors and people we have been discussing more comfortable in fact. Because this is a desperate attempt. This is like a fish on a boat trying to grab something. If they were serious in their defense about over claims, they would have responded to it in the proper venue. But this venue shopping and trying to get out of the texas courts, they are not really suing us. Our understanding is they are asking a court to step in in another district and say that our claims are invalid. It is just wasting time, wasting everybodys time and money. It is just what they do. It is what they have done to our country and what they are doing to our politics and now our court system. Emily all right. Certainly interesting to hear your perspective or side of the story. Bobby, triller coowner an executor chair, thank you so much for joining us. Coming up, Holiday Season is almost upon us. In a pandemic, it will be a big test for ecommerce giant, including overstock. Com. The ceo joins us next. This is bloomberg. Emily Home Furnishings company overstock. Com reported yesterday. Joining us now is overstock. Com ceo jonathan johnson. Thank you so much for joining us. Holiday season is upon us, and yet we are in the middle of a pandemic, which brings a host of logistics issues and more demand. How do you plan to navigate this time and beat the competition, amazon, walmart, target, giants . Jonathan we are going to continue offering great prices on the furniture we sell. We also have been working very closely with carriers, letting them know our forecasters, ups, fedex, and the like, making sure our products are delivered quickly and on time. I think that will be the real trick this Holiday Season for online, making sure their carriers, shippers are able to get product to their customers. Emily what is your outlook on demand . I know a lot of folks have been focusing on their homes right now because they are stuck at home. Does that continue . Jonathan it has continued for us. We still see robust demand for Home Furnishings. We think it will continue through the Holiday Season. We think this holiday is going to be a cozy time at home. People are not traveling. It is probably going to be smaller groups, tightknit families together. People want to focus on homes. They want their homes to look nice. We see demand continuing. Results were strong but the stock continues to slide. Why do you think that is . Jonathan figuring out the market is hard. Daystock market is day by of machines. Is to run theb business well, make sure we are growing and have sustainable, profitable market share growth. That is what we have done the last two quarters and continue to do. Over time, i think the market will recognize the great business we are building at overstock. Emily we were covering amazon results yesterday and a former executive told us that inside the company they talk about it don, because it is a pandemic and now Everyone Wants to be online. You talked about what you are doing with your carriers. Have you ramped up fulfillment as well to meet demand and keep the smooth . Jonathan we have over 4000 over 5000ith different Fulfillment Centers around the country. We are working with carriers and our forecasting Fulfillment Centers and warehouses. We opened a new Fulfillment Center of our own in Southern California to increase our footprint and get closer to the customer. Hipagedon i think will be real but those that had sustained growth like overstock are better prepared to meet it then those that have really spiked growth in the Fourth Quarter. We are ready for it. We think it is real. We tell customers to order earlier if by getting it by a certain date is important to you. Emily quickly, in 2021, when life returns to some sort of new normal, does the whole demand picture change . Jonathan i think so in the Home Furnishing business. , 19 of home 2019 furnishings were just online. That has been growing at about 1 to 3 per year. I think people during the pandemic have experienced purchasing home goods from home. Found out how easy it is. I think that is a paradigm shift and we will see greater and greater online penetration in this market, even when we get back to normal or out again. Emily jonathan johnson, ceo of overstock. Com. Fascinating story to tell. We will be watching you the Holiday Season. Thank you. Another Ecommerce Co