Plus, big tex pharma. Tech pharma. Amazon launches a digital pharmacy that includes discounts and deliveries for prime members. It promises to upend the pharmacy business as we know it and may spell trouble for thousands of small pharmacies across the country. And, just what are your children watching . A new study finds if it is childrens content on youtube, it is probably littered with ads depicting violence and providing no Educational Value whatsoever. We will have all the details. First, u. S. Stocks pulled back from record highs today as u. S. Investors turn to the surge in new cases of covid19 and lockdown measures. Pharmacy stocks took a beating after amazon announced it is getting into the pharma business. Our Abigail Doolittle has more from new york. Markets generally ended the day down, but it was a big up day for amazon. How much influence did that have . Abigail lots of great headlines that you were mentioning. It was a fairly quiet day. It started risk off and ended mildly risk off with the s p 500 down about half a percent. The nasdaq 100 flipflopping between gains and losses. At the end of the day, a very small loss. Ap said that was the fact that amazon did climb on the day. That was the fact that amazon did climb on the day. At the end of the day, amazon up just slightly, but on that news that they are opening an online pharmacy. The possibility of this has been out there for quite some time but, to my knowledge, the news seemed to come out of surprise. For the likes of cvs health, walgreens, others in the drugstore supply chain really taking a beating on the day given that the Worlds Largest ecommerce giant getting into the pharmacy space. If you think about it, if they are delivering drugs to your home at a discounted price, it could create the need to never really have to go to a drugstore again. A good reason for those pharmacies to be down. It is not proven right now how this will work, but in concept, it does seem it could be disruptive to the space, and you see that with pharmacy stocks down. Emily right, potentially a huge move by amazon. We will talk about that later. Meantime, the nasdaq outperformed the s p, in part because of tesla. But, tesla will be a common stock linking the two in the future. What trends did you see there . Abigail such a fun story. I know that you broke it yesterday when that news came out. This has been long anticipated. It means that any index manager that has an index fund linked to the s p 500 will have to buy tesla. At the end of the day, up about 8 . It had been up almost 14 at the highs, its best day since july. The company is so big that they may actually break it into two pieces. They are not sure how they will move it into the s p 500 index. It will happen december 21. This really just adds more credibility to tesla. Two or three years ago, there there were time periods when folks were wondering if tesla was going to be a growing concern. Added tohave it being the s p 500, so a real feather in the cap of elon musk and also in his wallet, quite frankly. Other tech names on the day, a little bit mixed. Twitter and facebook, of course those ceos testifying. Facebook down 1. 4 , twitter up slightly. Both saying they are open to some section 230 reforms. Jack dorsey of twitter said they feel there was a bit of a mistake in terms of how they handled that one story relative to the posts. Not reacting much around that testimony. Yesterday, facebook was up. Twitter was down. It seems like we are seeing a little bit of reverse action on the day. Emily that seems to be a typical reaction after these hearings. Not much of an impact for investors. Abigail doolittle, thank you for rounding that up for us. More on the hearing now. Top u. S. Senators challenged the ceos of both facebook and twitter today on questions of content moderation at their role in political discourse. The platforms once again accused of failing to moderate online speech bias against conservative voices. The hearing came less than a month after both jack dorsey and Mark Zuckerberg appeared alongside Google Ceo Sundar Pichai in a hearing last month. For more, i want to bring in bloombergs kurt wagner, who was tracking the hearing for us today. Second time in less than a month on the same topic. Was this time any different . Kurt it was a little bit different. I felt that the tempers were a little bit lower. Maybe being postelection versus preelection, there was a little less animosity. And i think there was a little bit of discussion about potential changes to that section 230 argument. While i dont think we walked away with any clear picture of what happens next, i do feel that the conversation was a little bit more productive. There were still issues from both sides of the aisle of senators who took their time to chastise these companies. But for the most part, i think we had a little bit more substance than in october. Emily there was definitely some filibustering on both sides. Jack dorsey kicked off the hearing talking about how he does not believe there is enough transparency in the way that twitter handles the actual operation process involved. Lets take a quick listen. Our policy is focused on misleading information around the election and the civic process to provide greater context so people can make decisions around what is happening with the election. That is three phases. The runup to the election, election day, and also the phase we are in right now, postelection. Our policies are focused on providing more information and context to people in those three phases. Emily here is Mark Zuckerberg talking about election interference from foreign actors, namely russia. Take a listen. We cant stop countries like russia from trying to interfere in an election. Only the u. S. Government can really push back with the appropriate leverage to do that. But we have built out systems to make sure that we can identify much faster when they are attempting to do that. I think that should give the American People a good amount of confidence leading into this election. Emily just a flavor of the tone of both ceos. They have said in the past they would be open to regulatory changes. They said today they would be open to regulatory changes. What do we know about what those changes would actually look like . Kurt what they seem to be suggesting is more transparency. You heard jack dorsey kind of talk about it there. There is this idea that these companies are making decisions without giving people information as to why they are making a certain decision. Today, Mark Zuckerberg said he thinks maybe companies should be held to a certain standard around how much content they take down and how much they do proactively. How much hate speech, how much terrorism related content do they actually find and remove, and should they be held to a certain standard . There is a reason he has suggesting this. Facebook already does this. They have quarterly reports where they show, here is the things we have taken down. Here is how much was done automatically and here is how much was done with human review. They have kind of been arguing for this more transparent approach, and they figure, we can still continue to police the way we do but give people more of an idea of why we are doing it, and maybe that can be the solution to this problem. Emily i wonder if some of these, especially republican lawmakers, will be satisfied with what they heard. Im going to be speaking with senator Marsha Blackburn later in the show. She referred to the employees of these companies as acting like the gods of silicon valley. What would you want to hear from her as someone who would be very involved in potentially encouraging the government to take stronger action . Kurt it feels like senators and congressmen and congresswomen from both sides agree that section 230 needs to be reformed and that these companies seem to have too much power as the current laws and regulations work. But they are coming at it from different angles. Republicans are saying, youre taking too much down. Democrats are saying the exact opposite. What i would want to know from her is how realistic is it that they could come to a conclusion around changing a law like this if their outcomes are totally opposite. If one group wants more stuff taken down, even if you agree the rules dont work as written today, can you come up with a solution . My guess is no. But i would be interested if someone making these decisions thinks that there might be a middle ground where they could come to some kind of agreement. Emily i will ask senator blackburn about that later in the show. Kurt wagner, thank you so much for your analysis. Coming up, amazons newest venture. How the ecommerce giants newest announcement has sent shockwaves through drugstore chains and distributors. What it means for the Pharma Industry overall. That is next. This is bloomberg. Emily amazon is making its biggest push into selling prescription drugs yet. The Worlds Largest online retailer is launching a digital pharmacy. Prime members who dont use their insurance are eligible for discounts on the site, or at about 50,000 pharmacies. To discuss, we are joined by ysomberg technolog spencer sober. It is called amazon pharmacy. You can order your prescriptions online, get them delivered at home. How exactly is this going to work . This is what a lot of people have been waiting for. They bought pill pack a couple of years ago. Its essentially an online pharmacy. Now they are putting it under the amazon banner. You have to log into your amazon account, punch in the drug you are looking for. You would need to submit a prescription. If your insured, amazon would have to coordinate with your insurance company. There would be paperwork involved and some delays, that sort of thing, but ultimately, you would get your prescription in the mail. Emily when you need a prescription, you generally need it now. Sometimes, you would prefer to have in two hours rather than two days. How efficient is this going to be in practice . Spencer think about a lot of maintenance medications. If you go to the emergency room and have some kind of infection, this isnt going to be the answer. There are people who take a lot of regular maintenance medications. They could fill them in thirtyday prescriptions, even 90 day prescriptions. It is going to be more for them. People who are constantly renewing these things and there is a cycle to it. This is where it will be advantageous for amazon. Amazons delivery and convenience would be something consumers would want. Emily how does this fit into jeff bezoss overall strategy . Obviously, youve got other Pharma Companies shaking in their boots. A number of stocks plunging today. Talk to us about the ambition here. When you think about pharmacy, you cant just think about somebody going to the pharmacy to get their pills. You have to think about the overall basket. You walk into a cvs or walgreens, all of the other products in there. Its the same reason walmart has a pharmacy, the same reason target has a pharmacy, costco has a pharmacy. All of these trips are potentials to purchase other things. It is a sticky thing. Often, people on these maintenance medications are getting medications once a month or so. It is another reason to get them in your establishment, your store, potentially buying other things. Thats another reason why it appeals to amazon. It is about those regular touch points with the customer. Same reason they have grocery ambitions. They want to be able to provide things that people buy with high frequency. Emily what are going to be the Biggest Challenges . The pharmacy business is obviously incredibly complicated. There are a lot of entrenched competitors. There are concerns about how amazon is going to verify these prescriptions. Drug addiction is a huge problem in this country. How will amazon handle all that . Spencer thats a great question. What amazon is offering here is not exactly new. There are other folks already doing this kind of thing. The question is, will amazon , simply because of its size and trust factor, will that pull people into the fold . One of the companies that got clobbered today was group rx. Theyve got about 5 million members. Amazon has about 80 million, 90 million prime members in the u. S. And those are households. If we see a big shift in prime members that count on amazon for more and more of their daytoday needs, if we see a good percentage of those prime customers go to amazon for drugs, this is where the book becomes sweeping and sticky, if those people move and if amazon is able to deliver. Just the hassle of changing. It is easy to go on amazon and start buying general products. But, to switch your prescription from a traditional pharmacy to amazon, you have to call your doctor, amazon has to contact your insurance company. There is some friction. Thats going to be the hold up. Emily we will be watching 90 million prime members all getting prescriptions on amazon. Sounds like quite a challenge. Coming up, the day has finally come. Airbnb has filed to go public on the nasdaq. We will look at the companys journey to the market next. This is bloomberg. Emily airbnb has filed for its ipo even as it outlines widening losses and pledging plunging revenue amidst a pandemic. But, when the economy does recover, the airbnb listing is set to be one of the biggest of the year. Sources tell bloomberg the Company Plans to raise as much as 3 billion. We are joined by kathleen smith, the cofounder of renaissance capital. We have all been wondering what airbnbs numbers look like. Now we have a glimpse into their financials and how hard a hit they took in the pandemic. What are your takeaways now that you have seen the numbers . The company does not look as bad as we might have expected. This company has been able to grow 30 per year and produce positive cash flow because bookings are paid upfront. The company has had a pretty good financial picture historically. Bennett then it took the big hit this year. In the september quarter, we saw a drop of 70 . 70 in revenue. So, the company was really hit hard by the shutdown. But, it is starting to recover. With the restructuring they have had, they cut 25 of their workforce and significantly cut their marketing spend. I think it may be a Better Company, a more efficient company, and is going to benefit as the economy opens up. You can already see that other stocks in its group, such as booking holdings and expedia, have all had some very strong trading as the market is anticipating the improvement in results for all of these companies once we get beyond the athome phase and everyone gets out to traveling and booking. Emily as airbnb went through this restructuring, they pulled back on a lot of experimental things. Hotels, flights. They are still working on experiences. The ceo said it is very much going back to home and apartment sharing. Is it as exciting a company and as big of a Growth Prospect without all those bells and whistles . Or is it a Better Company without those . We think that without the bells and whistles, the company will have a really good focus. There is no reason they cannot get back on the growth trajectory and expand further in this existing business internationally. We have always been impressed by airbnb, in 12 years since its founding, took about a 20 share of the rental market. That is a pretty good achievement. Just in the existing markets, it ought to have very good opportunity. Obviously, you want to expand in an efficient way. Having gone through this, we expect this company to be very focused and not to be fooling around too much with investments that may not make sense. Emily outside of airbnb, what companies are you watching as we round out 2020 . We are expecting some other potentially big ipos. Doordash, affirm. What are you watching . Kathleen the market has been so good for investors who have been investing in the segment. The renaissance ipo index is up almost 80 so far this year. That means that investors in the companies that have gone public are doing well. Beget moreturns ipos. We have a rush of ipos we have been seeing since the summer. 2020 is going to be a record year in a long time for ipo reissuing. Some of the months recently look like what we had 20 years ago. We really have a big number of Companies Lined up. A lot of billiondollar ipos, as you mentioned. Doordash we think will be a 2 billion or so ipo. They a lot of interest in it. It is a segment that has really run up during the pandemic with the Restaurant Delivery business. It is the leading player in Restaurant Delivery. We are seeing, as you mentioned, a whole lineup of others. Swish, ecommerce site. Ecommerce loan site. A number of them. On the calendar this week, there are a couple of a Million Dollar pebacked ipos. There is a big rush to get it done before the end of the year. They a lot of strong companies. It is a good time to take a look at the ipo market. Emily as we go into 2021, do you think this wave continues into the beginning of next year, into the administration changeover, or do things slow down . Weve got about 30 seconds left. Kathleen we think it continues as long as the returns hold up. We expect it to continue. It should be a good year for issuance. Put it on the map for 2021. Emily all right. Always good to hear your predictions. Kathleen smith, cofounder of renaissance capital, thank you as always, for joining us. Coming up, we will hear from a senator who grilled jack dorsey and Mark Zuckerberg today and accused their employees of acting like the gods of silicon valley. Senator Marsha Blackburn of tennessee will be my guest. Businesses today are looking to tomorrow. Adapting. Innovating. Setting the course. But new ways of working demand a new type of network. One thats more than just fast. You need flexibility to work from anywhere. And manage from everywhere. Advanced technology. With serious security. And reliable coverage, nationwide. Forwardthinking enterprises, deserve forwardthinking solutions. And thats what we deliver. So bounce forward, with comcast business. Emily welcome back. Turning back to our top story of the day, the ceos of facebook and twitter were drilled by top u. S. Senators today at a hearing on their content moderation policies. Conservatives have criticized both companies for what they say is unfair policing of rightwing content, including posts by President Trump since election day that have falsely claimed v