Doordash joins us to run through the companys latest results. There is a wealth of micro data today that we will be digging into, not to mention new yorkbased peloton. I am looking at a plot at a broad index. We are seeing the nasdaq up. 7 . We are relieved we will not see rate hikes but no signal of rate cuts as we see a resilient u. S. Overall jobs picture which we get no detail of friday. Yes there is a cooling, the slowest increase in jobs since november. We are seeing a 10 year yield down one basis point. We anticipate the jobs data and the bloomberg dollar index weaker as we see a bit of a relief. Down. 4 . What is bitcoin during versus the u. S. Dollar . They were up 3 . A risk on trade today. What are you watching on this Corporate News front . Ed lets start with peloton. Wild morning session. The ceo will step down. 50 of the Global Headcount will be cut. Things are not Getting Better for peloton. Look at the chart to illustrate the point. When the market opened there was a session high of 18 curing what is another restructuring and we are now down more than 10 . Having had time to look at what peloton is saying comment on the hardware side of their business multi channel sales side and subscription things will not be as good by the end of the year as they had hoped and the market had hoped. We will get deep on that later in the show with bloombergs mark gurman. That is a real ride. The earning story is elsewhere. Qualcomm up almost 10 . The Smartphone Market seems to be recovering. Therell be a lot to talk about with the ceo and also what is happening in china. Then doordash. This is a tale as known as the history of gig economy companies. Investors looking at the ebita forecast. The relationship between app based gate platforms and people top is something we have talked about a lot. It is the u. S. s biggest delivery platform. Midsingle digit in the Second Quarter. Lets find out what is going on with that one. Caroline we did see strong numbers for a fiscal First Quarter but it was this worry about the forecast that is sending the shares lower. The doordash ceo is the perfect person to speak about us. Talk to us about why this restrained outlook for adjusted ebita and the Second Quarter and why the ramp in the second half . Good morning and thanks for having me this morning. Q1 was strong for us across the board. Demand for the platform continues to be very strong. Alltime high in terms of users and subscribers. Alltime high in terms of order frequency. In q1 we had more orders than our history. One of the strongest quarters since ive been here the last six years. When i look at the underlying demand on the platform is very good. We are not seeing weakness on the consumer side, whether low income or high income or the east coast or the west coast. Across all markets we operating in 30 countries. We posted the lowest net locked in our history which is mediated by the highest adjusted people top in history. Im excited by not just the q1 results but q2 as well as the rest of 2024. Caroline you get frustrated when the shares fall because the market wants to see more in terms of profitability for the forecast . Ravi our goal has been to continue to build the best product possible and you are seeing that in our results. Users have been an alltime high. We ended 2023 with 37 million consumers. That number continues to grow considerably. We are not seeing any weakness or the local merchants on the platforms. We are seeing strong doubledigit samestore sales across the board. Our grocery business is below it is growing at 100 year on year. Our goal will continue to be to build the best product possible, whether it is consumers, merchants, or dashers. Ed if you zero in on the adjusted ebit forecast there is some sense you are investing in specific areas and that might be impacting the bottom line. You are investing in the technology layer. What is the goal there . Ravi in q1 one of the cute things that impacted the business is we did absorb some costs in new york as well as seattle. That cost will reduce as we go through the rest of the year as we consider other opportunities to make those costs go down. If you recall our business, the Restaurant Business has been profitable for many years. We are taking the profits from that business and building two new businesses, grocery as well as international. Both of which are growing extremely fast. They are growing faster than a Restaurant Business. At the same time the profitability of the businesses is going up. If you look at our new verticals business, the third party has been gross profit positive, the same as the case with international where many countries, the Restaurant Business is margin positive. The Restaurant Business profitability is improving. Ed really quick, you mentioned seattle and new york. There are idiosyncratic factors in the quarter. Explain the basics to audiences on what happened on the policy front. Ravi our goal is always to work with policymakers and regulators. We do that in hundreds of cities across 30 Different Countries to ensure we are protecting the flexibility and accessibility of doctors across the globe. We have taken some action to change the way we operate with making the business more efficient. Our goal is to continue to work with policymakers in that regard. Caroline lets get details on operating profits. You say they will come in the near future. The market expects the third quarter. Are they right to expect that . Ravi what you are seeing in the business is the growth is strong. Profitability across all lines of business is improving. I expect the trend to continue. If that trend continues on growth as well as profitability, the overall business will be positive. It is just a question of time. Our low has been very strong. You look at the quarter, we generated half 1 billion. That is our start and be able to maximize that side of the business. Ed what are the specific consumer habits, the size of the basket they are doing . Lots of frequency level spent. That all things like that. Ravi what we are seeing in the business is more consumers ordering from more categories. Historically people thought of us as a Restaurant Delivery platform. Today 20 of our consumers are ordering from convenience grocery, alcohol. We have increased the basket sizes. Ed we have to go. Thank you. Caroline we have some breaking news. Lets go to President Biden levering remarks. 9 the first pres. Biden the first is the right to free speech and the right for people to peaceably assemble. The second is the rule of law. Both must be upheld. We are not been a thought or terry and nation where we silence people we are not an authoritarian nation where we silence people or squash dissent. Peaceful protest is an the best tradition of how americans respond. Neither are we a lawless country. We are a Civil Society and order must prevail. We have often faced moments like this because we are a big, diverse, freedom loving nation. Moments like this there are always those who rush in to score political points. This is not a moment for politics. It is a moment for clarity. Let me be clear. Peaceful protests in america. Violent protests are not protected. Peaceful protest is. It is against the law when violence occurs. Destroying property is not a peaceful protest, it is against the law. Vandalism, trespassing, breaking windows, forcing the cancellation of classes and graduations. None of this is a peaceful protest. Threatening people, intimidating people is not peaceful protest. It is against the law. Dissent is essential to democracy but dissent must never lead to disorder or denying rights of others so students can finish the semester and their college education. It is a matter of fairness. It is a matter of what is right. There is the right to protest but not the right to cause chaos. People have the right to get an education, the right to get a degree, the right to walk across campus safely without fear of being attacked. Lets be clear about this. There should be no place on any campus, no place in america for antisemitism or threats of violence against jewish students. There is no place for hate speech or violence of any kind, whether it is antisemitism, islamophobia, or discrimination against arabamericans or palestinian americans. It is simply wrong. There is no place for racism in america. It is all wrong. I understand people have strong feelings and deep convictions. In america we respect the rights and protect the right for them to express that. It does not mean anything goes. It needs to be done without violence, without destruction without hate, and within the law. Make no mistake. As president i will always defend free speech and i will always be just as strong standing up for the rule of law. That is my responsibility to the American People and my obligation to the constitution. Thank you very much. Have the protests forced you to reconsider any of the policies in the region . Pres. Biden no. You think the National Guard should intervene . Pres. Biden no. Caroline President Biden delivering remarks at the white house regarding student protest. Lets bring in kailey leinz for more. Against violence and destruction but for peaceful protest. Kailey the president making it clear he does stand americans right to free speech, but essentially that it should be done peacefully. The president making remarks in the roosevelt room saying dissent must never read to disorder or the denial of rights and the right to protest is not mean the right to cause chaos, going on to say there is no place for antisemitism in america. He makes the remarks as he is facing growing pressure to address what we are seeing happening from Columbia University to the west coast with what we have seen at ucla. All of it speaking to the pressure he is under as he is trying to stand by israel as an ally but there is growing concern about the way israel is conducting itself against hamas in gaza. We heard the president being asked by a reporter whether this has made him rethink his policy on israel. He said no. He also said no about whether the National Guard should be interfering in these instances on college campuses. I would also point out we will be hearing from President Biden on the issue of antisemitism again next week on tuesday, may 7. He is planning to speak at the capital as part of the National Holocaust remembrance address ceremony that will be happening on that date. We heard from the White House Press secretary yesterday who said the president will discuss the moral duty to combat the rising scourge of antisemitism in the administrations work on that issue. We probably got a preview of some of what he will say when we heard him speak today. Ed bloombergs kailey leinz, thank you for the context. We have been talking about protests at Different University campuses across the country and across the world for several days now. What was the politics of this with the president . What was the pressure on the hill in the conversation about whether or not biden would say anything and the timing of it . Kailey we had heard President Biden speak on this before, saying he condemns antisemitism , although he also suggested people need to understand what is going on with the palestinian people. Certainly the domestic political pressure has been growing. We have seen republican members of Congress Taking hold of this issue. We have seen mike johnson together with other republican members of the new york delegation going to the campus of Columbia University just last week. Just last night the house passed a bill that would essentially help the definition of antisemitism be applied differently with the department of education. There was some concern that would become a free speech issue and would limit criticism of israel or the israeli government. It still got through with a bipartisan majority. It is unclear whether that will move forward in the senate but you are seeing efforts to combat antisemitism. A lot of blame being cast on President Biden, whether rightly or not for what we are seeing on college campuses, and he has been dealing with applicable ramifications of his wider policy towards israel throughout this primary season as we have seen democratic primary voters voting against alternatives, whether it be uncommitted or something to the effect in different states like michigan and others to express their discontent without the president has been handling his israeli policy. Caroline talking of israeli policy, breaking news that turkey has halted all trade with israel, that is both exports and imports to and from israel as of thursday according to turkish officials familiar with the matter. Kailey leinz bringing us the latest from what the president has been saying. We want to return our attention to what is in investors focus right now. We are still amid earnings season. Today is apple reporting Quarterly Results after the market closed later today, giving investors a better sense of how the iphone maker is weathering the sales slump. We also have to be talking about one on earth is having a peloton. Bloombergs mark gurman for more on what to expect. Lets kick off with apple because it is the huge company many focus on. What are we lining up for . Mark the expectation for the fifth time in six corners apple will report an annual decline. Revenue is expected to come in at about 90 billion, which would be a 5 billion tip on yearoveryear. The other thing that is not so hot, all of apples product categories, hardware categories from the iphone to the ipad, the mac, wearables, those are expected to decline on an annual basis. The only bright spot being Significant Growth in the services business. Another decline in Greater China on the heels of reports from counterpoint and others that iphone sales in china dipped about 1 5 despite the Smartphone Market going up in general. 90 billion in revenue is a big number, that is amazing for most companies. For apple wall street would have liked a bit more. Ed hardware and services is a wild story when it comes to peloton. Lets show the two day chart. Opened as high as 18 and is now down more than 10 stop no sign that peloton has a strategy to get itself out of trouble. Give me the details. Mark i do not think people realize how close peloton is to bankruptcy. They will be lucky to remain on the stock market much longer. I am shocked Mary Mccarthy stuck around so long. There is nothing he did not do. He has laid off several thousand people and move from the hardware focus to a content and subscription focus, restructured the company multiple times, hire new executives to right the ship, outsourced everything you can outsource, from installation to shipping to manufacturing, and here we are, missing wall street expectations, missing internal forecasts, different peloton appliances. The premium app falling fat on its place on its face. The marketing chief continuing to leave. Peloton in the worst shape it has ever been in they have no ceo running the company. Caroline looking ed the stock is at a record low. They ended the quarter with 700 million of cash and they did say because of the headcount reduction they will save about 200 million a year in cash flow positivity is possible by the Fourth Quarter but as you outlined the situation with peloton, which is a company way off its pandemic era high is pretty bleak. Bloombergs mark gurman. Stay tuned for his reporting on apple. Coming up, chipmaker qualcomm out with earnings. There is a lot of talk about with the ceo cristiano amon. That conversation is coming up. This is bloomberg technology. traffic noises the road to opportunity. Is often the road overlooked. at enterprise mobility, we guide companies to unique solutions, from our team of mobility experts. Because we believe the more ways we all have to move forward. The further well all go. Caroline time for talking tech. Videogame publisher Take Two Interactive plans to shut down two subsidiaries as part of a shut down in london in send the adult in london and seattle. Last month taketwo said it would lay off 5 of its staff. Lets take a look at starlink as it is still operating in multiple unauthorized regions after it said it satellite internet would be shut down by may 1 in those areas. These notices after a march investigation by Bloomberg News which first revealed the extent to which elon musk satellites are being used in countries where it is illegal to operate, including in territories ruled by repressive regimes. Regulators move to bar a huawei lab from approving telecom gear for use in the united states. It is proposed similar moves against other providers deemed a National Security threat. The sec says this will ensure nongovernment labs are not influenced by untrustworthy actors. Ed this is another big bloomberg story. Chinese telecommunication giant while weight is secretly funding cuttingedge universities cuttingedge research at american universities through an independent washingtonbased foundation. Here is bloombergs kato keith. At the heart of this reporting is you following the money. What did following the money tell you . Kate what we saw is over the past few years huawei has funded hundreds of researchers and spent millions of dollars and it was all without their knowledge. They thought they were being funded by a Foundation Based in washington, d. C. Caroline competition administered by optica and you said there are 11 opportunities for grants on the website to have career prizes and fellowships. All that the huawei funded competition are clear about which backers are providing the money. What did the Opti