And as millions of americans continue to stay home amid the coronavirus, we run down some of the hottest holiday tech peoples of their, all as swarmed online sites. Speaking of staying home, what streaming companies are doing. First, lets get a check on u. S. Markets, where we have been talking about the rotation out of tech shares on corona vaccine news. Reversed courseon wednesday amid data showing a possible slowdown in economic growth. Ed ludlow joins me with my. What are you seeing . Ed im calling it the unwinding of the rotation trade, taylor. The s p 500 coming off this record high, dow coming up 30,000 points that we saw yesterday, and then the technology stocks, the nasdaq 100 index up. 6 . Data wise, this is the first backtoback rise in weekly u. S. Jobless claims since july. Investors are reassessing what is going on with the economic recovery as it relates to covid19. The story, as you say, has been a move into value and smallcap stocks, those kinds of companies that would recover if there is the successful rollout of the vaccine. That sentiment is on ponce right now. In terms of the names doing stayathomehe stocks, the likes of amazon and apple. Zoom, which we talk about so much from one of the big finish fisheries of the pandemic. Big beneficiaries of the pandemic. Fed minutes did not move the needle. Bitcoin softness as well. We mightve expected to get the a recordber of 19,511, for bitcoin, but we didnt. The cryptocurrency fell away in the later hours of the trading. Treasury yields on the u. S. 10year largely unchanged. Taylor i will try to lure you from bitcoin over the tesla. The rally continues. Some of the stalling within the rest of the ev space. Ed it is relentless, and tesla continues to lead the way in the day could there is a bit of a reassessment for some of the newer stocks, the newer names listed recently. Perhaps investors are thinking this rally has been very hot, and perhaps the suggestion of profittaking, with some traders telling us at bloomberg that the stocks that go up have also come down at some point. The undercurrent that is pushing ev stocks is policy. We are moving closer to a joe presidency and the hope is that that will push consumers to take ev adoption more seriously. Theor it is incredible, wednesday before thanksgiving, everyone has gone home at noon, but no, the corporate world continuing to make big announcements. Ibm, salesforce. Ed the lender Corporate News flow. Planned case, job cuts in europe. Not a huge negative reaction. We had a report out that salesforce in talks with slack over potentially acquiring as you can see how investors responded to that, slack up almost 38 , salesforce down 5. 3 . Raymond james expressing doubts that that kind of deal could take place, but that is certainly want to watch in the coming weeks. Taylor thank you as always to bloombergs ed ludlow for the latest on those markets. He mentioned salesforce. Salesforce is considering acquiring workplace chapter will slack. All chat tool ck shares as much searching as much as 34 for we joined by an analyst. The analysts are coming out and thinking that this looks positive. What is your really take on this . Early take on this . It would be an aggressive move by salesforce. We are going into a golden age of cloud. It will introduce further expand the footprint of slack in the strategic sense. It would be a major shot across the bow to microsoft, google, and others in terms of where salesforce is coming and where they are positioned in terms of what i believe is a trillion dollars spent over the cloud in the next decade. Taylor some analysts were also noting that in order to do this, the best way is via stock. Dothere were to be an m a you prefer stock as the acquisition mode . Dan i think given the size of be deal, slack, this would the biggest deal salesforce has ever done, and there would clearly be a significant equity component. That is why the stock sold off. Is what thisw this could do to salesforce in terms of penetration on the cloud. And they continue to expand. And then there is some that view nothat if salesforce is acquiring slack, they will be acquired by another vendor. Taylor who could be the other vendor . Dan right now if you look, the biggest competitor is microsoft. You look at who would want to go up against microsoft. You look at google and amazon the traditional names, there are antitrust issues. I think that is part of the issue, when you think about who could do a deal like this it would be salesforce continues to be the core front and center. That is why salesforce walks away and the deal does not happen, there could be more headwinds in terms of the stock for slack. Taylor how nervous should microsoft be if the deal goes through . Dan i think for microsoft it is a competitive threat. Teams in the scheme of things is not generating a lot of revenue, but it shows where salesforce is viewing itself in terms of its cloud race. It has been a twohorse race between aws and microsoft now with salesforce, more and more competing with microsoft. Thiss to this cloud is something in the works from the home environment, accelerating it by one to two years, and salesforce recognizes there is a time to seize on this in terms of going to the fifth year of growth. Taylor we love getting you on this program because you really can talk about most of these technology companies. Nd we have to turn to tesla incredible price target on your end. What gets tesla to 1000 . Dan its all about china. We are at an early inflection of demand, with what we are seeing in the china opportunity. 4 penetrated today. 10 in the next two to three years. Tesla in terms of where they are positioned, see where the dots are not just in china, but in europe. We could be looking at a Million Units for tesla in 2022. That is why in the ev market right now, it is teslas world and everyone else is paying rent. Taylor what about competition . Ford, gm . Dan this is going to be a transformational opportunity for many players. When i look at gm in particular, that is one that has a big opportunity to be a success. Of course come in china, byoc, and some of these others, look at the overall ev market, it is not just going to be one winner in terms of tesla. Competitively they will narrow the gap. And fremont are 18 to 20 from whence ahead of any competitor, although you look at what gm is doing, that is an interesting thing domestically in terms of competition. Taylor dan, you also cover vmware. Erform, 100 summary for 174 price target. We will speak to the ceo next. What is the one question you would want to ask . Dan look, they are doing a great job. I think the biggest question is terms cybersecurity, in of where that fits in the portfolio. They are in pole position to gain more and more share, going through this transition. It is looking at that opportunity and how they can expand that with the rest of the virtualization suite. Aslor dan ives, thank you always for joining us on a host of topics. Coming up, we will have more with the vmware ceo talking about the recent Earnings Report and why software is taking center stage. That is next. This is bloomberg. Taylor vmware out with earnings today that topped thirdquarter estimates. However, some analysts gave cautious praise to the cloud company. Traders remaining a little bit skeptical of the companys bottom line. Here to go over all the details, lets bring in the vmware ceo pat gelsinger. Talk to us about the outlook for 2022. That seems to be where our analysts work needing some more answers. Hardware analysts were needing more answers. Yeah, and as we look into next year, we see that the economy still has a lot of choppiness. The first half probably a bit more conservative, more recovery in the second half. Second issue being we are leaning hard into subscription and saas transformation. You get less upfront with a subscription model put the lifetime value for the customer is better. That is depressing nearterm earnings and Revenue Growth rate. Overall, we are excited. It is faster to the future. We are taking this covid pandemic prices and we are going to go faster to drive the transformation because we see that his overall where the market is going. Onpremiseovider of and clouddelivered services, a hybrid offering we are uniquely positioned to do. Theor when do we see uptrend . At we look at it as threeyear cycle. The second and third years look better, when you are coming out the other side and the businesses you build are accelerating saas is more at scale so the margin is improved. It is this threeyear picture, and year, stil la choppy economy fulls are taking the opportunity. Still a choppy economy, we are taking the opportunity. Taylor the mix of the margins. Omes from investment in hiring pat we have continued to invest this year and we plan to continue to do so next year. The saas model has more Customer Success requirements, because you have had little order, then you have to grope it over time. You are much more in partnership grow it over time. You are much more in partnership and that drives up the cost of the saas business. It is a big investmentheavy on the front end, but the lifetime value, as we are seeing from customers coming to the offerings, 44 growth rate this quarter, we are quite optimistic with where the customers are going. Taylor rbc analysts are noting that we are seeing the guidance is conservative. I do wonder, why is it conservative guidance . Pat i think everybody looks and vmware,y, when they when they say something, we are company inner guidance. We are up predictor of the future and where the markets are going. Highsingle digits range, they were expecting a little higher, everybody is maybe a little too euphoric on the economic outlook. We still believe we have a long way to go until the vaccine. All that taken together can wear comfortable with the guidance you have given, and we have a great track record of being able to deliver what we say. Taylor we talk about Amazon Web Services on this program. Im curious how you think about relationships with these more hyper cloud ryder system pat vmware cloud providers. Pat vmware has come a long way. Our teams meet forever regularly come and as we have started to see them really lean behind the pmware offering, they are a preferred partner. We are getting big customers who are betting on the vmwareamazon relationship. Quite excited about that. One of the really powerful things about this last quarters you now have all the other hyper their vmware offering asher, google, all on alibaba, ibm, board with a complete vmware solution, and this is our multicloud capacity. We can help you take advantage enter hyper scalers onpremise environment as well. That is unique position we have of the multicloud hybrid offering against the common vmware footprint gaining more interest and momentum in the marketplace. Taylor you mentioned the onpremise business. Do you get concerned it wont come back as quickly as we thought . Factorsis one of the that was somewhat negative on this quarter. Wedo expect some recovery as look to the pipeline in q4, and as the economy comes back, we expected to come back as well, largely in line with the economy next year. I call it the three laws of the onpremise cloud, laws of economics, laws of physics, laws of the land. There is lots of areas where they needed onpremise for the regulatory reading. It is cheaper for an atscale private cloud to move to the public cloud. Finally, the laws of physics. We will have more things on premise because you need below latency need to the low latency for robotics and edge environments. The foundational reasons we build on premise can even as we see acceleration of the cloud and the offerings on the nearterm. Taylor you have a unique insight on how customers are spending or not. How do you look at i. T. Spending at this moment and the uncertainty we experience . Pat overall i have been on record that we are in a decade cycle for tech spend. Digital transformation is more important than ever, except there is a moment in history where that has been the case. The pandemic period where telehealth and education for many it is a good cycle for tech. We dont expect that to end for several years into the future. I look at it as gdp and i. T. Spending will be better than gdp , and the cloud spend will be better than i. T. Spend. Overall in that order, and while it may come down, it will also come up in that order as things come back as well. Tech spend, strong. Software and cloud spend come even stronger. That is outlook for next year. Always cap gelsinger, good to have you on the program. Leton, thepe most Popular Consumer products people will be looking to bite black friday. Are they worth the hype . This is bloomberg. Taylor black friday and cyber monday are upon us, and there are four Tech Products competing for attention. Rundown in a segment we like to call power up. Oury welcome to inaugural power up segment. There are new iphones this year. You have been using the biggest one, but you have also tried out four of them. How are they working . Does 5g work, and and who should be upgrading this year . People aseen some lot of iphones and i love the big, larger screen and the bitter camera can but i wish apple would take better advantage of the screen. Appsuld be nice to do two sidebyside. If you are coming from the iphone 11 now, you dont need the update because 5g still has difficulty. Speeds ive seen are not as fast as what you would expect or what apple is marketing. If you are on the iphone 10 or older, now is the time to upgrade because of the new camera. The carriers have all sorts of deals. Phone for zero dollars a month or 10 a month. There are some good deals out there. Tell us about the Wireless Charging situation. This is the first time apple did not include the charging brick in the box. The situation is a little complicated because they still have the charging port. The problem is that the cable is 40, the phone doesnt come with the brick. You need to buy the 40 cable plus 20 for it. Now they have this twodevice charge where you have to buy a different bracket to get the full speed. The wirelessr charging experience. Probably better thirdparty options. Emily emily how does this stack up to other models from google and amazon . The home pod when it launched two years ago, optimistic about the quality and the technology, the price was way too high. There were lots of issues related to siri and integration and stuff like that. Those have not been solved. Now at 99 with pretty decent sound quality they took out the biggest barrier to entry. ve been trying emily you have been trying the new sony ps5, and all the headlines are about how hard it is to get. It is is it worth the wait . The wait is intense. Ive seen people paying 1100, 1200, cannot wait for it to ship. A tvt know who has that supports it, but they are amazing. You can really see the sweat dripping off the players faces. Everything looks super realistic if you want the latest and greatest technology and you have ps4 games, that is the better option for you vs. The new xbox. Emily speaking of wait times, the new wei tan for the peloton the wait time for the new peloton bike has been a talker. I imagine this is going to be a popular gift item. Should that bring down the wait time . Unfortunate, they have not managed to bring down the wait time. I spoke to the peloton ceo a few days ago, and he told me they are getting back around q3, april or may for peloton. Treadmill that is not shipping in the u. S. Until the end of march. It will miss the key holiday season. Taylor that was mark gurman and emily chang. Coming up, we just heard about peloton bikes potentially not making it to their destinations because of supply chains and shipping. Other shipping delays are anticipated as the Holiday Shopping season gets into full swing. This is bloomberg. 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. Taylor this is bloomberg technology. I am taylor riggs in new york. In a normal year, black friday kicks of the Holiday Shopping frenzy. 2020, the pandemic year, so in this new normal, holidaypegged something began earlier in part because of online shopping. Now delivery times are in question. Amazon merchants around the usa deliveries of some products are being delayed. Melissa, i think it was the my blackit felt like friday sales came a month ago. Am i right . Absolutely. It kind of kicked off with amazon pushing prime day from july to the middle of october hold for demand into the holidays. That did kick off the holiday season. Instead of five days of black friday, cyber monday for can we are having a month of black friday deals. Taylor is this permanent . Am i ever going to walk into a mall again . Had my you know, i thanksgiving meal delivered to me for the very first time. I avoided going to cosco and to whole foods, where i normally shot, and i got it through instacart and grocery pickup through whole foods. The experience was magical, and i dont know if im going back. I think a lot of the Shopping Behavior will stick. Instacart released data around their customer information, and they said 86 of their users are likely to keep using instacart in the future, and 89 c instacart as an essential service. I wouldnt say that this is permanent by any means, but it is behavior that is going to a verycertainly around busy holiday timeframes. If people have great experiences like i did, they are likely to do it again. Taylor my producers are some of them, who love the convenience of it. Doordash doing deliveries for the traditional work and mortar stores. I wonder if you think that is a great weight for them to look to the future to pivot and partner with some of these companies, because otherwise they may be left struggling. Melissa absolutely. We saw an Interesting Partnership announced last week with instacart and best buy. Instacart is traditionally a grocery platform, and a lot of stores are closed tomorrow for thanksgiving for the lastmile delivery opportunity is hard. Having this ability to partner instacart, and others is a smart way to help pageddonare calling ship this year, and going forward, different models people are trying out. Taylor you mentioned shipageddon. It seems like, using amazon for example, try to transform to be a logistics company, and yet no one predicted this massive surge in online shipping. That has been the story of 2020. How much delay how many delays are we expecting to see this year . Melissa it is going to be significant. Amazon has been predicting it and that is why they started in october. Rime day we saw messaging across a lot of consumer sites saying shop early, shop now. The shipping cutoff as early as decem