Justh to reopen california today taking smaller steps to ease its lockdown later this week. The first state to shut down its in our lets bring Bloomberg Markets reporter, taylor riggs. Why did tech outperform the rest today . Taylor a lot of the optimism new yorkn newsom, from governor andrew cuomo, seemed to turn that around in the final hour of trading. , all of theoned direction today. Fangs,daq along with the the peak out performers. Microsoft, amazon, apple leading those gains. Needp hearing that you that leadership for this rally. Emily Warren Buffett seemed to be driving a lot of the pessimism, saying he got out of airlines entirely. Walk us through how his remarks may have played out today. Since down the lowest september of 2013. Warren buffett said he would rather take losses in those positions. He said, the airline business, and i hope i am wrong, and i may be wrong, but it has changed in a major way. He said the future is much clearer to me. 137ew his cash pile to billion. Opportunities with which to invest, probably the scarier comments that we have heard in recent weeks. Week. More earnings this beyond meet, i know you have been highlighting some of the stories out of that company, lyft. , and taylor let me start with beyond meat. It is a story of the bulls and the bears. You have had three analysts download downgrade this to a sell rating. Concerned about the food service business. Spacetail the grocery has also been under pressure. As i noted last week, there is case, that we bull are worried about food sourcing, these illnesses that keep them from animal to human transition. A lot of this might create the opportunity for labbased meat in a clean, controlled environment. His knee plus, positive earnings from netflix, disney plus, we know this is not a zerosum game. There is some demand for multiple different streaming services. Disney plus could be a winner. Moffettdo have craig today downgrading the stock to neutral. Theme parks and the studio business could be a major headwind. Parks obviously remain closed in many parts of the world. Meantime, to continue our coverage of big tex, we decided to take a closer look at how the sector performed over the past week. Certainly not immune to the covid19 crisis. Tom facebooks user surge to as vanishing forecast, closer spotlight on amazon. Streaming giant netflix kicked off big tech earnings by reporting a search in subscribers in the first quarter. The company cautioned that growth might not keep up, predicting that netflix and disney plus with vast libraries of content, will start to rise above the rest. The streaming efforts will settle out into two dominant players, netflix and disney plus, with the others finding out sooner or later that they were better off being suppliers to those platforms. With an 18 jump in revenue. Here is facebook cfo dave wing. We saw a pullback in advertising at the end of q1, starting around when the who declared a pandemic. Early march, in the first few weeks of april, we were flat yearoveryear. Inly also seeing a jump revenue but warning on ad sales was alphabet. The ceo saying, we are focused on longterm opportunities. ,earch, cloud, Machine Learning hardware. Despiterevenue rose supply chain disruptions early on in china. Partook told us the last of march and first part of april were very depressed and we have seen a pickup relative to that in the secondime part of april. Lastly, amazon, perhaps the most visible tech company in the covid19 crisis, reported shrinking profits amid circumstances that Ceo Jeff Bezos called not normal. The company said it is spending 300 million on inhouse virus testing. A big jump at whole foods stores. Amazon, howok at ponds continue to be a bonanza. Joining us to discuss the current state of the text or is j jacobs, head of research at global x etfs. Obviously, a lot of these companies in your top holdings. Lets start with facebook and alphabet, because they are of course both impacted by a coming add slowdown. It is all about the Current Quarter. How concerned are you that we will see the full impact of the atdemic and it will not look not look good in the shortterm, it is very easy for companies to dial back advertising. They can do it on their computers in a second. Many corporate that feels like they need to be in cash preservation mode can dial back their spend. You are seeing Phenomenal Growth in googles cloud, growth in users on facebook which has been slowing down for many quarters in a row. I see bright spots which think will continue to shine a light on these Companies Even if that means they have to experience a little bit of turbulence. Emily you also hold apple, tesla, microsoft. Which of these companies would you say you are most concerned can weatherr they the crisis . Jay they will overflow they will all face unique. Tesla is a company that has been valued like a Cloud Computing carsny, but creates that traded some of the lowest valuations on the planet. If you look at apple and microsoft, they are hard companies to fire. If you are a consumer whose bone breaks during covid19 you will get a new phone. If you are an advertiser, you probably will not fire microsoft. Emily what do you think the second phase of the pandemic looks like from a tech perspective . Obviously, we saw the last quarter. What is the Current Quarter ultimately look like and what trend will you be watching for clues as to what the Balance Sheet looks like for the next few weeks . Jay we will continue looking very closely at the cloud space. A lot of companies have seen acceleration in acquiring new customers. We want to see how capable they are at holding onto those customers. We look at a company like netflix. They had a huge quarter in new users. The most amazing thing for us is how little money they spent to get those users. 100 per quarter last year. In previous quarters, they spent almost 200. This quarter, they spent 30. That makes them very profitable when they look at how they will break even with that customer. Does that user growth continue in a lot of these Cloud Companies like netflix, and how long can they hold onto these customers and continue to generate new revenue from them . Emily we have been digging deep into the Netflix Library and discovering some old shows. What about when that stream of new and old content begins to dry up . That impacts not just netflix but disney and all of these entertainment companies. Have a prettyo deep of content on the bench still. Ist is being disrupted now 2021 content. What i would not look past is that people will develop content in this environment. Maybe it is not incredibly high production value but there are a lot of creative people out there with a lot of time on their hands. We might see some new techniques that people use, but netflix is certainly in a good position to continue releasing content. Global xy jacobs, etfs. Coming up, we will hear from salesforce chair and Ceo Marc Benioff about a new suite of tools they are releasing to help companies reopen safely. This is bloomberg. Berg. Force. Com is salesforces latest effort to provide companies with a suite of tools to provide companies with readiness to get back to work quickly. I spoke earlier with the salesforce ceo, marc benioff. Marc this is my first pandemic. I am trying to figure this out as i go. Was 90ot know what ppe days ago. Now we have done everything we can to make sure that our hospitals are wellequipped. That is also why we built this suite of software, because we believe this is important. That is why we will have a chief Health Officer at salesforce. I dont know how we can manage a Large Organization around the World Without end. Are we in a recessionary environment . Are we in a depressionary environment . We are taking actions to make sure that we can be successful but also that our customers can also be successful. Emily what is your assessment of how the Trump Administration has handled the crisis and what needs to be done . Marc it is hard for me to opine on government response. I have a lot of empathy for the situation. As i said, this is my first pandemic. Not only for our government but a lot of governments around the world, it is their first pandemic. For those who have been through pandemics before, like south korea, taiwan, japan, they have done a much better job because this is not their first time at this. In south korea, we have employees going back and making sales calls with customers. On may 11, in south korea, we will reopen our offices. They are ahead of us. They are modeling for us here in the United States how to be successful in the future. I am confident, as we have our second or third pandemic, i hope we will do a much better job than with our first one. Emily youve been incredibly active on the ppe front and called on other companies to make a 90 day no layoff pledge, which you have made yourself. What happens after 90 days . This has now become so much more severe economically. Can you reup that commitment or do you think that salesforce may have some layoffs of their own . Marc when this first started and we said this would be three phases. The first phase, this 90 day basis, which we are now getting ready to exit, we really called out and said, lets not lay off anyone in the first 90 days. That is difficult for a lot of companies to do but a lot of companies followed us and have made their own 90 day pledges. It is amazing. Now, we have the ability to come back to our offices fully intact as an organization. That is important for us and i think for others. For those who have let go of people or are experiencing a need to rehire, i hope that the government in the second phase gives companies incentives to rehire aggressively. I think that will be extremely important. Emily going into this, you have been very outspoken about big tech, facebook in particular, very critical about facebook. Obviously, washington has had its eyes on big tech. There is this discussion about whether this will make some of the Big Tech Companies stronger. I wonder if that is something you are concerned about . That big tech could become even more powerful as a result of the crisis. Marc it is very important that every company is doing what they can to improve the state of the world with their organization. When you are the ceo of a company, you have to ask, what am i doing to improve the world for my customers, both commercially and philanthropically. We have seen with other companies, and specifically on social media, with the spread of misinformation, giving people for health information, it is giving people poor health information, it is unacceptable. I was encouraged when i saw several organizations back to make sure that the information getting out to people was true. You cannot be giving people the wrong health information. The government has to step in, regulate these social media companies, hold them accountable. They should be accountable for saying what is true. Emily lets talk about what is next for salesforce. Some of your customers are like marriott and other companies that are really struggling. We are already seeing a wave of negotiations trying to renegotiate with their landlords, renegotiate on software contracts. The ceo ofe been salesforce now for more than two decades. This is not my first economic crisis. When we started our company in the early 2000s, we went through a very severe economic situation. We changed our contracts and cultures so that when we got into a situation exactly like this, that we could operate with integrity. We will make adjustments and always focus on what we can do to make sure our customers are successful. Salesforce chair and ceo, marc benioff. Musk standing by his pledge to sell most of his possessions and two houses already on the market. This is bloomberg. Some breaking news. The retailer Neiman Marcus could file for bankruptcy as soon as this week. The Company Closing in on a bankruptcy deal with its lenders. Pimco among those lenders. These lenders would provide Neiman Marcus with a bankruptcy loan. Lash debt and hand over control to the lenders. Meantime, i want to talk a little bit about elon musk, who tweeted last week that he thought tesla shares were overvalued. The Stock Plunged about 10 . It is backup about 9 . He is making good on his promise to sell his physical possessions his homes ono of the market. Elon musk has five homes. Two of them are on the market. Is he really selling these homes . He seems to be, according to zillow. It is a pretty hard time to sell houses right now. California is still largely under lockdown. I think he is trying to make good on his tweets that he is i guess downsizing is fairly vast carbon footprint. Emily these are not cheap homes. We are talking about a 30 millionmansion, a 9. 5 ranchstyle home. We are never sure what is going butnside of elons head, saying the stock is overvalued, being concerned about the shutdown of the factory, concerned about the coronavirus pandemic being overblown. Dana the backdrop of all of this, one is that musk has a pagelucrative compensation where he gets more Stock Options in tesla when he hits certain milestones. He should get the first trance roughly 750rth million any day now. Workers are furloughed, stuck at home, but he is also about to grow his personal wealth and his stake in the company by a pretty significant margin. I am not entirely sure what set him off on friday with the tweets, but he is saying that he is getting rid of all his possessions. What does that mean . Is he unloading all his stock . Just his houses . What about the jet . He also owns a james bond submarine. He is a billionaire. Interesting if he goes super monastic in terms of his lifestyle. Emily he also tweeted that his girlfriend is mad at him. It was not clear what that was about. He has a lot going on in his life. Isnt he expecting a baby any day . Are pregnantgrimes and apparently the baby is due today. I think a fan tweeted at him earlier and said, any baby news . He responded, and the next few hours, which kind of indicated it was a scheduled thing. He already has five boys from his marriage to justine. This would be his sixth baby. Emily we wish him luck and congratulations. Thank you for the playbyplay. We will be following twitter to see if there are any new developments. Coming up, what the new normal will look like. As the economy comes out of the pandemic, what it will look like in Silicon Valley with more companies laying off employees. We willtalk to a tech veteran and venture capitalist. This is bloomberg. 49. 50 daddy, i found you good job. Now im gonna stay here and you go hide. Watch your favorites from anywhere in the house with the Xfinity Stream app. Free with your xfinity service. Now any room can be a tv room. Stream live tv, on demand shows and movies, even your dvr recordings. Download the Xfinity Stream app today to stream the entertainment you love. Emily welcome back to bloomberg technology. Parts of europe and the u. S. Are starting to ease their social distancing measures, but the question remains, just how bad will the economic fallout be and how long does the economic recession go on for . Joining me now is a tech veteran and earlystage venture capitalist, eric hippeau. Always good to have you here with us. We hear about more people getting laid off every day in Silicon Valley and even marc benioff earlier in the show could not commit to not laying off employees and he is the one who took this 90 day no layoff pledge. That time is coming up and he called another companies to take the pledge, too. As long as this goes on and continues to go on, it is getting harder and harder for companies to make those promises. Have any more layoffs do you think we are going to see . Eric i would say it depends on the sector. In many sectors, such as travel, the bulk of the layoffs are behind us unfortunately. In some other sectors, maybe technology is one of them, people are living month by month, week by week and trying to make those decisions as to when the economy is going to reopen. Luckily in some sectors, technology being one of them, there wont be a need for a lot of layoffs. A lot of it will depend on the shape of the recovery. Has obviouslyh been through the. Com bust and the financial crisis, but this feels different. Im wondering what do you think the tech ecosystem looks like at the end of this . Is whate tech ecosystem is allowing us to work and live through this entire epidemic. Without technology the way it is today, we wouldnt have home deliveries, telemedicine. We wouldnt be able to work at home. Even 10 years ago, none of these things would be very easy. We would not only have the penetration, but the speed we have today. Let alone the ability to exercise at home. Lock peopleou cant into their homes without entertainment. We have all forms of entertainment. All of that is momentum that is carrying us through the covid19 epidemic and will hopefully be part of our lives, not entirely the way it is today obviously, but in part of our lives as we march through this. We will some ways drive the economy of tomorrow. Emily what advice are you giving your Portfolio Companies now . Especially the ones whose business is really at risk . Spoke to them very early in the epidemic. We asked everybody to come up with an emergency plan, even those who might not have been affected immediately by the crisis. Foremost they have to think about cash. Cash is king. They have to emerge out of this crisisk hopefully with one year worth of runway in terms of cash. That determines pretty much have to do. We unfortunately have furloughs and layoffs in our portfolio as we have seen pretty much everywhere, but we have tried to minimize that. The people have to take some tough measures and have had to take some tough measures. Emily now, we are getting some headlines on the terminal that Weworks Adam Neumann is suing softbank over a stock deal that was canceled. Softbank had committed, in some form, to buying 3 billion of then didares but not follow through on that. Another example of companies not being able to follow through