he made the comment at meetings from the hardy -- harley-davidson motor company. homeland security department inspector general has launched an investigation into the president's executive order temporarily banning entry to the u.s. from seven predominantly muslim countries. inspector general john roth notified to jenna -- democratic senators who requested investigations that the probe is underway. secretary of state rex made his first comments at the state department. he urged his new colleagues to work as a team. the former acts ceo also called for an end to ineffective traditions. he says he will evaluate. toronto's threats from the the administration will not be effective. the president said iran is on notice following the latest mission -- missile test. michael flynn says it was in defiance of the un security council resolution. iran called the white house remarks groundless ranting, and

says that they don't need permission to defend themselves. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 companies here it i'm alisa parenti, this is bloomberg. ♪ >> i'm caroline hyde. coming up, snap officially following -- filing for an ipo with an initial price of $3 billion. the details ahead. drop.amazon's numbers ceo slams on the brakes, calling it quits on trump's economic advisory council. all the details ahead. first to our lead.

snape has followed the long-awaited ipo with an initial price of $3 billion. they plan to raise $4 billion for a market value of as much as $25 billion. the parent company of snapchat is the first u.s. social media company to do so since twitter over three years ago. this is the first opportunity for outsiders to get closer look into the company that is known for the culture of secrecy. joining us is alex barinka. we also have sara, who covers all things facebook and snapchat. , ale you are the ipo guru. the first thing i was looking at, the headline financial numbers with this company. i was looking at revenue of $404 million last year, and a net loss for the same of $514 a

year. you can see how much cash the company is burning through. we see the deadline -- daily active users numbers and revenue numbers, but we didn't have a sense for how long they are having to spend together. this is the first glimpse that investors have into it -- have to take into account, can i balance the amount they are spending with the prospective opportunities they are pitching to me when i'm trying to get to the $25 billion market valuation? caroline: when you're looking at the business model in 10 new -- that sort of valuation we are seeing, do you think it can be vindicated? >> i started looking at the risk factors a list. there are a lot of familiar things. there is the competitive landscape. the fact that it keeps getting copied by facebook and instagram. these companies that have a lot more resources and reach. there's also just issues like

the founder control. alex mentioned we will have to see if we want to bet on the company long-term. founders will retain majority of voting control. and then, user growth. , that's ther's ipo number one thing people are talking about. the user growth at snapchat, 100 58 million daily active users. it is good, more active users than twitter, but it's just a little more than instagram has for the product that copies snapchat. instagram has 400 million overall. we have a fascinated approach -- fascinating approach. but now the cofounder, in your role as a vc, that you have been an investor in step. -- snap.

what made you interested? >> we are super excited about snap. very few companies really get to change consumer behaviors profoundly as they did. four over the past decade. they are an extremely good company. very consequential product. think the enthusiasm for a snap ipo bodes well for the rest of 2017. caroline: and we have a company and companiesg, are trying to woo them. how willing are they for this sort of data? >> this is a very downtime for tech ipos. there have not been new issuances out there. that bodes well for the snapchat listing. they have not been able to make a big bet when there's a lot of shares being offered. or bigomises returns growth. that is what snap is pitching here. through,nipe -- cycle looking at the first few pages,

the colorful images they promote, we don't see a lot of roadmapping going forward. we see the past. when you look at the information that investors are going to digest, you are going to have numbers, and then you will really have to believe the story the management is pitching throughout the roadshow when you are deciding to open up your pocketbook. what are the trepidations as a founder when you're looking to go to the market? why isn't there is much meat on the bones in terms of the future? >> it's always a trade-off between access to capital and how much distraction there is. as a ceo and founder, you pick the best accommodation. we were at a much smaller scale at the time and it was easy to have access to capital on the private markets. going public is a lot of work

and kind of a distraction because then you wind up, having to be a lot more open and match wall street time at -- estimates. snap is doing amazing innovations. they have worked on augmented reality and wearables. things in ay have longer timeframe than the next quarter. >> and they said that their performance will be lumpy. they will have to make fits and starts in investments and new products, and their growth may not be predictable. caroline: when we are looking at 158 million active users, it's also the fact that they are going back. >> every hour and every minute. >> they are engaged. >> engagements and behavior changes. this is why a think it's a good time for them to go public. they've done something to transform the way hundreds of people -- hundreds of millions of people live. it is great to give everyone who

wants to be the owner of that the opportunity. they are at the stage where it makes total sense. caroline: we will be having our dream team continuing on this. great perspective. general catalyst, which is an investor, and a founder as well, fantastic to have them with us throughout the show. we will cover this topic later in the hour. thank you for joining us and sticking with me. another stock we are watching, fireeye. security company says it sees first-quarter earnings coming in below analyst estimates. they're feeling is that sales will improve.there also nothing leadership shuffle. the executive chairman and former ceo is leaving the company, along with the cfo.coming up onber's ceo calling it quits the president's business advisory council after a tumultuous week. we bring you the latest, next.

this is bloomberg. ♪

caroline: uber ceo travis: it has quit debbie'--trump's business advisory council. this is after there was a petition or him to step down. his participation on the council prompted blowback on social media following the president's order onsial executive immigration. it snowballed into a #deleteuber campaign. quit -- was it's all surrounding the delete uber? reporter: yes. it has been a pr disaster for uber. they got a lot of blame for seeming like collaborators by joining this advisory council.

elon musk and ginni rometty are also on it. but the backlash for uber has been strong. caroline: it also seems unfair in that respect the other ceos have not had the same backlash. it's also swept up in the same toe that uber continued service jfk airport when other taxis were striking, but lyft continued service as well. is that they failed to deal with it properly. reporter: there were a lot of factors. uber started off with a bad and combative reputation, so it didn't have a goodwill -- a lot of goodwill with people. it's a product that exists in big cities where many of the users are out in the streets for protests, so it underestimated how strong a stance it needed to take given the demographics of its own users. caroline: we did hear from travis kalanick promising to put

forward concerns from users to the president directly at what can he do now if he's not on the advisory council? reporter: it's a bit of an about-face on that. .e did speak with trump we haven't figured out exactly what they said. he won't be able to attend the advisory meetings tomorrow. he won't be able to voice those concerns. caroline: thank you very much. it is big news. now amazon shares dipping in extended trading. you can see that in post trading we are currently off by 3.75%. the company reported revenue over $43 billion, but that missed analyst estimates. the disappointing numbers raised concerns about increased bending on warehouses, movies, gadgets, and whether that is yet to translate into profitable

returns. but the bright spot is the cloud business. their web services 547% jump in revenue growth. here with us to dig into the numbers is the managing director , andneral catalyst principal analyst at forrester research. revenue is still strong, but it was a significant miss. was it really lackluster sales over the festive period? >> when you look back at the numbers for the last holiday season of 18% reported, and they topline.is6% revenue a little bit of missed on the consumer business. international business was up. that is good. business is way up. they had their own estimate bracket, but they missed the street. as an industry analysts, you look at the underlying forces

why. caroline: investment is heavy at this company. $42 billion being plowed in. jamed to suggest that tomorrow, never jam today. but is he spending wisely? >> i think so. this is the difficulty of being a public company that animates so much. -- innovate so much. you get measured on the stuff you brought in 10 years ago that's bringing in mainstream revenue, but real work is happening in things that will not cash flow for five or 10 years. aws is an example of something in the middle. it is bringing enormous, tremendous value. but you won't see the full financial potential for a few years. then the stuff they are doing and the more advanced research in ai, it has the potential to be world changing. but you will not see the in mainstream numbers for a few years. caroline: to put into perspective, shares down by 3%, but they have rocketed over the past 12 months. it is just a small flinch.

seee do investors want to , or are theyrowth just going to have to get used to sales being slightly below where they had hoped, but generally keep on betting on ai and content? >> that's a pretty complicated question. rewardedny has been for revenue growth and consistent growth, and rapid growth. they areindicates making investments in things not just about growth but about revenue driving to the bottom line. you think about repeat business and the growth in amazon prime, tens of millions of new users, prime is a loyalty program as well where you get movies and television. this is about repeating business and customervalue satisfaction. that doesn't pay off necessarily in revenue this holiday season or this year, but it pays off in the long term commitment that amazon make customers and customers make to amazon.

when you look at the flip side of it, they have to invest they have to spend heavily in. the logistics. they have a ground fleet for same-day delivery. they have container ships. there is investment to drive -- there will be a little more lumpiness, but i think overall we will see more profit as well. caroline: it's always interesting digging into the earnings. they said they launched prime in china, with millions of authentic international products. little bit of a warning to alibaba. growth, do youal believe this will be the company we are becoming addicted to from an ecosystem standpoint? >> i do. i think it's one of the most important companies in the next decade. i made this production of exactly 20prediction years ago.

it was from a book. how far they have come in 20 years, the areas they have and mentally innovated in, both in terms of geography and infrastructure and new products have been breathtaking. if anything, the case of new stuff they are doing is increasing. if you evaluate them as an early stage investment, they are actually going faster and faster and are more attractive. the paradox is they are a giant public company. i remain extremely enthusiastic about amazon. ted?ine: yes, >> sorry to jump in. andook at alexa and echo, the box to order stuff or turn your music on, that is phenomenal. and you look at the investment developers have made, the skills they are building -- this is a platform. it's an ecosystem for the future. caroline: it's been wonderful to have your perspective. thank you.

now to a story we are following. apple selling $10 billion of notes in its first trip to the bond market in six months. the second company to sell debt this week despite the repatriation holiday. that inmaker may sell as many as million parts with up to six different maturities. be a 30 yearill bond. coming up, we continue to cover earnings results. gopro turning in a profit in the fourth quarter that beat estimates, but stock has fallen significantly after hours. a weak outlook for the current quarter. we break down the results. this is bloomberg. ♪

caroline: now some earnings that came out today. nokia reported higher fourth-quarter earnings that missed.

this follows a steep decline in demand in 2016. stuck rose the most in seven months. wireless carrier vodafone is forecasting for your profit at the low end of the previous range. earnings before interest tax depreciation will be toward the bottom of the previous estimate -6% growth. speaking of earnings, gopro weak outlookiven a after a rough few months for the company. we are joined by a reporter covering the markets. reporter: it really is not looking very good for gopro in shares or for the company. the shares in the post-market are plunging more than 10% after the company did ms. fourth-quarter sales estimates. it was a big mess -- miss. also, the guidance for the first quarter is disappointing. the reason this is weighing on shares so much, prior to this

the stock was up more than 20% year-to-date. investors were really pricing this stock to perfection, expecting a big result. all of this in the bigger story of the beaten-down action camera maker, shares down more than 80% since their peak in august 2015. interestingly, that was the last time they turned a profit. in this corridor, they actually beat earnings estimates by 29%, putting up $.29 per share, the first profit since august of 2015. but the concept of the sales this was not enough to get the stock going. shares down sharply right now. caroline: that graph is something to behold, to see the deterioration of what was a silicon valley darling. what about the deterioration for the next quarter? it doesn't look to pt. -- peachy. reporter: you are right. $310 million in revenue for the first quarter.

in purple we have the sales estimates, or the revenue that has been put up over the last few years. -- two years. in the pink, we have the middle range. it is a big quarter over quarter drop off. in yellow, we have the stock trending down with the overall decline in sales. until sales start moving in the right direction on a trended quarter, the after stock is likely to stay down where it has been. hard to have a turnaround here. investors are clearly not convinced of it. caroline: great analysis. bloomberg news in new york. thank you. let's get the investors take. you are also a man who is of the gadget. you used to be addicted to the gopro? >> i was. it was a great product. i think they got one thing really right and one thing really wrong. the thing that they got right was if you made the intuition that it was super simple, that lots of people would do it.

but what they got wrong was that extreme sports with lead the way. the much bigger audience is just casual people who want to take videos of everything. of them eating, picking out close. -- clothing. instagramlike snap in are much more casual. you don't need a gopro. you just take video of anything. caroline: we are seeing video of the drowns, which is a bit of a disaster. they have now reintroduce them, having to bring them back in november. you have actually invested in a company, sunflower labs. what is the opportunity with drowns? selfies? >> it's about time for drones to become practical. i can takeed to be, pictures of myself. that's still pretty cool. but we are a ways off from that.

i really think it is for specific applications. sunflower labs is for sensors that you home security. it is a specific thing. that is where i think the next 10 years is for the drones. caroline: for gopro? >> focus more on a service and not just selling hardware. i think they need to take a second pass at something like that. something that there is an ongoing revenue stream, and casual use. it's not all about snowboarders. caroline: managing director at general catalyst, this is bloomberg. ♪

alisa: i'm alisa parente. you are watching bloomberg technology. the trump administration has given its response to a litany of lawsuits that followed the executive order barring citizens from seven countries from entering the u.s.

the administration urged a boston federal judge to lift the measure because no one is being detained. individuals, organizations, and some states called it unconstitutional and un-american. the treasury department published an amendment to president obama's sanctions against russia to "authorize certain transactions with russia's federal security service." the white house says it is common practice for the treasury to consider carveouts from economic sanctions. are wideningutors their probe into republican presidential candidate friends walk -- francois fillon. with less than three months to go before the voting, fillon wants to weeks to get his campaign on track. prime minister benjamin netanyahu is vowing to rebuild a new israeli settlement as soon to make up for the

one order demolished. authorities were told by a court to evacuate the settlement in the west bank, which was built without permission. global news 24 hours a day than 2600 more journalists and analysts in more than 120 countries. annalisa parente. this is bloomberg. it's just after 5:30. friday morning in singapore. i'm joined by bloomberg's david in place with a look at the markets. than 2600 journalists and a few more hourl the weekend in asia. markets are poised for another day of cautious trading. the s&p, stronger from a day before. a very unexciting start. the markets we are following, opening after this more hours long lunar new year holiday.

first reactionfirst reaction tog data that came out from china this week. p other story we are following in asia is this mining crackdown from the administrator in the philippines. philippines is the world's largest provider of nickel, and it essentially takes half the output off the table. we will be following nickel prices. in london, market reaction has been swift. watching what is related to that story later on. more from bloomberg technology, next. ♪ caroline: this is "bloomberg technology." i'm caroline hyde. the parent company of snapchat has filed for a $3 billion ipo. snape is now the first u.s.

social media company to go public since twitter more than three years ago, but how does the disappearance social app make money? don't know how i that sends disappearing pictures actually makes money? you are not alone. snapchat isn't just about sending selfies anymore. they are pitching themselves to investors as a camera company. >> unlike facebook and twitter, snap isn't just about ads on a native feed. part of their concept is creating content. lenses, geo filters, snap stories, and spectacles. first, lenses. brands can pay up for filters that you can overlay onto your photos or videos and send them to a friend or group. >> geo filters do something similar, overlaying the where or when that businesses and people

can pay to include in the app. i can also send my snaps to my snap story, a feed that friends can see before snaps disappear. which brings us to our third generator. >> our story. it's a group feed that snap goes through and grabs publicly posted snap and puts into one video feed. events seen this around like the women's >> march. regular people aren't just entering their content into snapchat. brands including people and espn started updating mobile magazines that create stories in millennial-from a versions with ads in between. >> you can't forget the spectacles. you can grab these suckers for $130. with them,ond videos and it goes straight to your snapchat app. >> let's just mention for a

second that advertisers have been wary about using snap, because they are so insistent on vertical video ads, when advertisers are much more used to the horizontal-shaped tv, but they are warming up to it. >> has it worked? the truth will come in the years after snap goes public, because the revenue is only a couple years old. that was the unstoppable stir-fry and alex iringa from bloomberg. let's bring in our bloomberg intelligence analyst. what really caught your eye? was it the growth? >> first of all, the revenue potential that they are showing is immense. if you look at where they are, they are saying $2.15 for the

less quarter. facebook was about 20. monetization is just starting. this is a company that gets millennials like no other. look at the technology, even the hardware. like, people look at it this wouldn't succeed, but it does because they understand that segment like no other. i believe the revenue growth potential is there. what is interesting if you look at the dau numbers, daily active users, which is the headline number for snapchat, it was flatlining for two quarters. with competition heating up, 400 million daily active users. was the difference in one quarter for instagram, and they serve similar audiences. i think the dau growth numbers would actually need more.

longer-term, you have to think of instagram. caroline: to a certain extent, snap doesn't want people to look at daily active users. they want to look at the addiction once you are using this app. is there a worry or snap doesn't people to look at daily active concern that suddenly you've got this copycat on the block, since facebook couldn't buy them, they just copied them? >> it's a weird thing to judge snap on. they have only been focused on revenue for a short amount of time compared to facebook. inventedcompany that so many new ways that people behave and have gotten those behaviors to stick in the fabric of people's lives. >> are they only millennials and should they stick to millennial,s? >> if they can stay with millennials, that's a fantastic market. if they figure out a way to speak to the heart of people in this generation and continue as

this generation takes over the world, that is a huge opportunity. >> is there a concern from your point of view as to the growth potential geographically? they dominate in the united states and united kingdom. how can they diversify across the regions? > if you compare them to competition like instagram, there are many more users outside the u.s. that's the opportunity for , to grow internationally aggressively. in the u.s..'s 40%, numbe there's a lot of opportunity to grow internationally. be ifncern here would instagram gets there first and copies these features and gets to the international market first, that might raise a some growth challenges longer-term. to his point about average

revenue per user, i can see that it is an isolated way of looking at things, but if you look at the big picture, which is hardware, which is supposed to increase content consumption, it is all married together. hardware itself could be a big revenue driver, as well. unlike facebook -- facebook's hardware contribution is still years away with oculus. caroline: they will have to pay a fine on that. >> another topic altogether. if you look at the hardware plus advertising together, the revenue opportunity that they have coming even if they stick to their core market 35 and below, it is still much higher than where they are right now. caroline: we've got very little time, but i just wanted to get your view. shares down a little bit. 22% revenue growth. just not good enough.

>> if you look at the growth, it actually slowed down. the cloud business was fine. margins were fine. you lookworry that, if at the organic growth of the company, is it slowing down because prime took some of the growth away, or is this something different. goes, as amazon really they basically have hundreds of consumer touch points to get you into prime. i think the strategy longer-term is pretty safe and sound. we will have to dig into the slowdown number to see what was the organic. >> it is prime catalyzing -- with the longer-term revenue. my suspicion is that is what is going on. short-termng down

because they're transitioning people into prime, which is more important long-term. >> fda is becoming a bigger portion of the revenue. the revenue recognition of that basis. is on a net the actual volume delivered is misunderstood. caroline: jam tomorrow. jeff bezos for you. thank you very much, great insight as always. coming up, online marketplace. lythgoe says it has raised $175 million in its latest funding round. we will talk to the ceo next. this is bloomberg. ♪

caroline: earlier this week, daimler struck a deal with uber to include the german companies vehicles on its ride hilly network. more cities bens has been comes toe and it developing self driving technology. francine lackawanna asked about the partnership. a push andcertainly a number of years. the platform is equipped for that today, but we a strong platform on one and and a strong player on could havend

benefits in the sense that we might operate mercedes cars on anduber platform potentially pay a fee for using this platform. caroline: staying with ride hailing,caroline: staying with e hailing, grab is planning to invest $700 million in indonesia over the next four years, intensifying what is fierce competition among the startups. the singapore-based company will build out its digital payment service and set up a research base in jakarta. indonesia is grab'd largest market, and the four-year-old company saw its businesses grow over 600% in 2016. online market place let go has raised $175 million. that brings the startups total to $375 million. since rolling out its app, the startup said it racked up more than 45 million downloads. grab marketgh to

share from dominant players like ebay and craigslist? selena wang sat down with let go's ceo and asked what the company plans to do. >> we've been growing much faster than expected to date, and i think that basically drives us to think that the best we can do with those funds is to continue what we've been doing so far. it will basically be used to continue investing in a product, mostly in machine learning, image recognition, artificial intelligence technologies, to make the product faster, and some international development. those are the biggest areas. selena: let go is a pretty young company. it's an online app that connects buyers and sellers to trade used goods. a lot of starters have tried to break the dominance of players like ebay and craigslist. what makes let go different?

>> one thing that makes us very special is that users love us. we've grown from zero to 45 million downloads in 80 months. i don't know any other mobile app that can say that. we have 21 million active users a month. i think the key to explain this is we have disrupted the product to facilitate trading goods .etween people the core of it is, the smart use of artificial intelligence and learning to accelerate the posting, browsing, selling, and the buying of goods using , which isrm phenomenally fast now. you can post an item in less than two seconds. you don't even have to write a title or description or categorize the item, which takes a long time. we do that automatically for you. take a picture, and everything

else happens automatically. selena: let go and a few other similar companies have developed in recent years taking advantage of this technology and to make it easy to buy and sell. what do you think this market is going to look lack -- look like the next several years echo how much do you think your mobile app can take away from existing players? >> it's hard to predict how much we will take way from existing players. what we are seeing is the market is expanding. when you look at the different players, many are actually growing even as we grow. we are the fastest growing. we are growing three times faster than anybody else. basically, it is new users getting into this category. we are expanding the pie phenomenally.

the reason being, we are simplifying the process to buy and sell goods locally. nobody has come out with a simple product, and i think people are understanding it and using it. the word-of-mouth is also kicking in. this turns into a virtuous cycle where more people come, use it, sell, buy. come, pushtill to back against president trump's order.tion explain what a company is requesting, next. bloomberg.

caroline: microsoft is asking u.s. officials to grant an exception to president trump's executive order on immigration. the company's president brad smith wrote, at microsoft, we have seen these needs firsthand

through some of our 76 employees who are impacted by last week's order an. microsoft is among a handful of u.s. tech giants, including facebook and google, writing an open letter to the president offering their help. still with us, bloomberg technology reporter brian womack . brian: i think it's interesting. we have all of these tech companies coming together and saying, here's what we think. . we had individual blog posts or internal letters, and this is bringing it all together. we will see how effective it is. you, this ising to a personal thing for you. you yourself were a refugee from the soviet union. you told me you came over at the age of eight.

his technology reacting in the right way? reactingthink we are in the right way and the running lane. for personalh engagement. i am a big supporter of constructive engagement, trying to figure out how to move the world forward together with the administration, not just trying to block everything every step of the way. caroline: interestingly, sadly potentially, one engagement has been cut today. saw uber's ceo say he wouldn't be on the panel. so far, the actions of the companies working together, are they being listened to in any way? >> what is interesting is what you were just talking about. there is a saw uber's ceo say he hope is it will be

listened to. there is a certain diplomacy and it. it doesn't have this sort of sharp edge to it. --o think there israel hope is real hope. we agree on this, we agree on that. how about these things? i think this is the tone in some of these things you have seen. caroline: maybe moving in the direction you would like to see it. we a disappointment that have seen one line of engagement between travis and the president end? is it good we are seeing elon musk there? brian: i don't know the specifics around travis stepping down, but i'm sad about it. i think travis is a super smart person, and having smart people engaged in the process is smarter than being bullied into taking an absolutist position. things.e technical you need to motivate your own days, people who agree with you, and keep the pressure on them. i get that. there's a big peas.

you need to change the minds of people who disagree with you. sometimes, it's harder to be loud. i would like see more people being constructed. i'm happy about this tone of engagement. caroline: microsoft talked about the number of people affected. have they talked about the business of fact -- effect? brian: i think at this point, there are a lot of unknowns. you could definitely argue, look, if there is pressure on who we can get in and who wants to stay in the u.s. and work for our companies, that has a longer-term effect. that is a big concern. as far as tangible effects, it's hard to see all those things. definitely some big concerns, and that is why attack companies are talking about it -- why tech companies are talking about it. we are a little >> bit tone deaf in silicon valley. we are in danger of going away went.ellywood

i also think the election has had positive effects on how we think. for me personally, i've become much less enthusiastic about automation as an investment goal. before the election, i was into robots doing as much as possible. i'm a sci-fi nerd. since the election, we have stepped back and said, what is the right role of automation? what should we rush to? should we think of some other things? i think that has been a positive thing. caroline: great to have you on. phil lived in. bloomberg tech reporter brian womack. this is bloomberg. ♪

> from our studios in new york city, this is "charlie rose." charlie: we begin with the supreme court. judge neil gorsuch is president filled.nominee to be the president made the announcement on tuesday evening. millions of voters said this was the single most important why they voted for me for president. i am a man of my word. i will do as i say.