alisa: i am alisa parenti from washington and you are watching "bloomberg technology." president trump took to twitter to criticize mitch mcconnell in the aftermath of the party's failure to repeal obamacare. the president says republicans have been talking about replacing the health law for seven years. trump firing back after mcconnell said his inexperience in politics gave him excessive expectations about the process. five members of the u.s. military sued president trump and top military brass in reaction to his banning transgender people from serving in the armed forces. the survey members are suing anonymously. they say the policy shift

violates the constitution. deputy chair and minnesota congressman keith ellison said it is an outrage that president trump has not condemned the weekend bombing of a minnesota mosque as a terror attack. no one was wounded in the attack. ellison is the first muslim elected to the u.s. congress. ron johnson suggested john mccain's brain tumor and the after midnight timing of the vote to repeal obamacare were factors in mccain's decisive vote. the spokesperson called johnson's remarks bizarre in and deeply unfortunate. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am alisa parenti. this is bloomberg. "bloomberg technology" is next.

emily: i am emily chang. this is "bloomberg technology." coming up, the escalating tension across the korean peninsula. u.s. secretary mattis sending out a warning to pyongyang to stand down. we will get you up to speed on the global crisis. plus, my exclusive interview with facebook coo sheryl sandberg. the veteran sending out a call to action for working women and holding companies accountable for commitments to their employees. a moment of truth for snap as it looks to turn the page on its unsatisfying first quarter. what investors expect from the second quarter report card thursday as they fight to fend off copycats. u.s. secretary of state rex tillerson is trying to smooth things over after president trump threatened to unleash fire and fury against north korea. earlier today, tillerson told

reporters the leader was sending a message in a language kim jong-un would understand. he added he does not feel there is an imminent threat from north korea. the fbi raided the northern virginia home of paul manafort two weeks ago to find tax and foreign banking records. joining me to discuss is sahil kapur in washington. let's start with north korea. there are a slew of bad options. what is the most likely way this plays out? sahil: this is a problem we know has bedeviled the clinton administration, the bush administration, the obama administration. no one has figured out how to deal with north korea because they are so isolated from the world. economic sanctions have only a limited effect. meanwhile, they have a massive military apparatus and an erratic and unpredictable leader. it is hard to know how this plays out. there are no great solutions beyond containing them and preventing them from acting in a

more belligerent way, which is what secretary james mattis said today. the white house spent much of the day walking back president trump's rhetoric, the fire and fury quote, saying it was off-the-cuff. that language had not been vetted. says a spectacular thing to the word should not be taken quite so seriously. emily: when it comes to paul manafort and the fbi raid on his home a day after he spoke to members of the intelligence committee, how big a red flag did they see? is it a sign they did not trust him? sahil: it is a sign the investigation into him is very serious. the washington post reported the raid happened late last month. leaked.ot it seems like the work of an investigator not operating in wants toic eye but

get the information they can. there were search warrants involved and they seized information from his house. beyond this a lot of this is , unknown to the public, specifically what the investigators have in mind. it definitely sounds serious. emily: more harsh words from the president himself for senate majority leader mitch mcconnell. president trump tweeting, senator mitch mcconnell and i had excessive expectations, but i do not think so. after seven years of hearing repeal and replace, why not done? what do you make of yet another public attack from the president to a key lawmaker? >> i think it is more significant than most of the president's prior attacks on republicans -- mitch mcconnell, the senate republican leader, the man he needs to get any legislation through. it is unusual to see trump and mcconnell going after each other like this. it has not happened. mcconnell has so far only offered at the gentlest of critiques about the president, with regard to his twitter feed.

he does not like the president's tweet because it distracts from the message and priorities of congress. this time mcconnell went further and pretrade president trump as a political novice who does not understand the way things move, and the fact things need time to happen. he accused the president of overinflating expectations. which is why you have a 200 day president trump does not have a major legislative achievement to brag about. the obamacare repeal bill failed. everyone is trying to point fingers. mitch mcconnell wants to explain why they were not able to get that done. this is some ratcheting up. that is unhelpful to republicans if they want to get big things done the rest of the year like infrastructure and taxes. emily: our new president has not been in this line of work before and i think he had excessive expectations about how quickly things happen in the democratic process.

sahil kapur from washington, thank you for that update. the x google engineer fire this week over his memo on gender differences. the tech industry made its comments. he spoke in an interview posted online. he discussed the reasons behind the memo. >> a lot of this came from seeing problems in our culture a t google, where a lot of people that were not in this groupthink felt totally isolated and alienated. there were many people that came to me and said, i am thinking of leaving google because it is getting so bad. i really thought it was a problem that google itself had to fix. emily: facebook's coo sheryl sandberg addressed the memo on her facebook page. she said inequality in tech is not due to gender differences,

it is due to cultural stereotypes that processed -- persist. we all need to do more. we hear later from her in this hour. we will cover the culture wars brewing within the tech industry. coming up, facebook is bolstering efforts to combat hate speech. their latest move and the impact. this is bloomberg. ♪

emily: facebook is doubling down on its efforts to combat hate speech. they are adding 500 staff in germany, to crack down on offensive posts. germany's parliamentary lower house passed legislation, threatening fines of up to $59 million. that would be levied on large social networks that failed to

report hate speech or remove illegal postings. joining us now, caroline hyde in london. and with me here in the studios, david kirkpatrick. great to see you in person. caroline, i want to start with you, laying out what is behind the beefing up in staff here. caroline: it is interesting, because you heard as recently as back in may and june of that we would see a beefing up across the world of content control people that would be working on behalf of facebook. they said they would be expanding it by some 3000 new content control staff, to 7500 worldwide. notably, most of these people work in outsourcing companies. this is happening in germany, 500 added in the west of germany. they already have in 700 in the capital at berlin. it is notable, as you mentioned, they have hatred for hate

speech. they have been tough, legislatively. this is after the sad backlash that arose after the immigration crisis that occurred in 2015-2016 and you saw neo-nazi sympathizers taking the social networks like facebook to put their anti-immigration views across. this is why they are focused to tackle this in germany. notably with the key election happening in september. emily: david, what do you make of how facebook is handling this issue now? david: they are trying hard to do the right thing. 7500 sounds like a lot of people, but if there are 2 billion on the platform -- let's face it, a lot more than we like saying things that are not very sociable. it is possibly going to take more than that. that is why they are focusing heavily on artificial intelligence. of finding these

comments. focusing on germany is very smart for them. it is a country, of all on the planet, that is most sensitive to this issue. maybe china, for other reasons. they will learn things they need to learn. emily: are other countries going to be doing the same thing, will we see this happening elsewhere? caroline: here in the u k and france, we have heard talk of bringing in legislation. remember this came after the , terrible attacks we saw in manchester in the u.k., and london, and of course the atrocities over the past few years in paris. together we saw france and the u.k. and notes they would do an anti-terror campaign. that was announced in june. much of it was focused on social networks on facebook. sheryl sandberg came to the u.k. and spoke to amber rudd. the home secretary here, a

couple of months ago. rudd has been in silicon valley. we have seen threats of legislation in the u.k. and france. really it is germany that has led the charge. emily: social networks, facebook, google, have thousands of workers around the world, not just dealing with hateful content, but inappropriate content. they have been criticized for outsourcing this work, the hardest work, to other countries were maybe employees do not have the same protections. what do you make of that? david: i have never been a big critic of outsourcing. i think jobs are jobs. people, if they are capable, should be allowed to do the work. does facebook have sufficient control and guidance capabilities over the people who technically work for outsourcing companies? i suspect they probably do. those people in many cases are extremely talented, very well-trained. it is really hard work. it is the kind of work a lot of americans do not want to do

because it involves looking at things over and over again, pornographic photos and awful things. they talk about the need to give these people psychological counseling just to do the work. i do not criticize them for using outsourcing firms. i criticize them for not having enough people and taking fast enough action. i think they are trying they , need to try harder, and they know that. emily: what do we need to know about the resources these employees are given and the types of counseling or psychological help they are also receiving? caroline: concrete evidence is few and far between. i went back to the post that announced this hiring in germany today. not once, not twice, but three times they mentioned the need for necessary support. they clearly realize there is this concern about, when people are staring into the abyss of human depravity, what kind of support can you give them from a psychological point of view? they will be giving them

counseling available. there will be plenty of training available. as you say, these people are eventually hired by contractors. how much control will they have? the contractors are based in germany and will be working very closely in the network. it is hard to know exactly what sort of support systems they will have. emily: david? david: this shows how serious the problem is. in germany, just in the german language, they will have 1200 of their 7500 people. think about all the other languages happening around the world. if they had a proportionate number in every language, it would be hundreds of thousands. emily: it is a herculean effort. thanks for sticking with us. caroline, thanks so much for weighing in. our exclusive conversation with facebook chief operating officer, sheryl sandberg. as part of the interview we talk , about why companies should

have a zero-tolerance policy for sexual harassment. this is bloomberg. ♪

emily: sheryl sandberg is going into her 10th year as facebook coo, having made a giant debt in the cultural zeitgeist in her book, "the call to action for working women." when her husband died unexpectedly, she wrote her second book, "option b." she has a new call to action for companies and the leaders as corporate policy continues to evolve. sheryl: i realize after i lost dave how badly we deal with grief. how badly we deal with not just finding what we need for ourselves, but supporting each other. i realized before i lost dave, i had no idea how to handle a colleague going through something hard. i would address it once, i am so sorry for your loss -- then it

would never mention it again. i realized even the basic pleasantries, how are you, to someone who was diagnosed with cancer or lost a child, that can seem like a really insensitive question. emily: do you feel like he is still teaching you or all of us? sheryl: definitely. i try to remember what dave would say, the way he looked at things. it gets harder as the years go on. as a parent, specific situations when i first lost him -- i face more situations with my kids. i try to remember what he really cared about. i know what he really cared about for me and my children and people in the work place. i have watched them take on surveymonkey, how people use data to make decisions. i know how much dave would like that.

on your show, being there is emotional. most of the time i ever saw him on the show was when i watched him. howy: how has it changed you lead? >> it surprised me. i have thought about the fact that when you are sad or angry -- what nobody had talked about was the confidence lost. people said the kinds of things to me i used to say to people. of course you cannot concentrate with all you are going through. in the days when i wanted to be at work because being at home was horrific. work was better once my kids went back to school. i had nothing else to do. that really undercut my confidence. now i have a different approach. i start with, do you need time off? but if someone is choosing to be at work, i will not just say, of course you can't concentrate. but i will say, thank you for the contribution. even the most basic complement can really help someone facing a personal crisis, a cancer

diagnosis, struggling with something in their personal life, because it tells them you still think they can contribute. emily: i know facebook has increased family leave, bereavement. how has this shaped facebook's culture? sheryl: it is an important conversation. i believe we need 21st century companies that make a 21st century commitment to employees. emily: what does that mean? sheryl: our public policy is in a bad place. we are the only developed country in the world that does not have maternity leave -- the only one. we are one of the only countries that does not have paid family medical leave. countries have an opportunity and an obligation to step into the gap. what is important to understand is, this is not a trade-off between the right thing to do and the smart thing to do. this is both. believe it will create a kind of i actually company that will outperform in a globally competitive environment. emily: i know you have been quietly disseminating this

philosophy around corporate openness and talking to ceos. what you tell them? sheryl: we need better corporate policies, parental leave, both maternal and paternal, childbirth, and adoption, equal for men and women. at the spook -- at facebook, we take -- offer four months, and we encourage people to take it. mark zuckerberg sets a great example. and bereavement leave. i did not think much about it until i lost david. facebook had really good policies in place, and we extended even further, we offer 20 days for someone who has lost an immediate family member, and 10 days for extended family members. i have been talking to companies about extending their bereavement leave. mastercard announced, and i was so happy to apply them. surveymonkey have done it as well. i hope more companies will step in and offer substantial and paid bereavement leave.

emily: it is hard to leave any job, but tech moves so fast. are dads taking the leave they are given? sheryl: one thing we do, we give four months over the first year. if you want to take it all up front as four months that is great. but some people have said, my mother is there for the first month, i want to do it later. one of the way we encourage people to take the full leave is make it flexible. emily: what if you work at a car company or consulting firm or a company in china, where it might be more difficult to create that kind of culture? sheryl: i have been talking about emotion at work for a long time. i wrote, i cry at work sometimes. that was reported as, sheryl sandberg cries on mark zuckerberg's shoulder. that is not exactly what happens. i wrote that i leave at 5:30 to be home at dinner with my kids. the concept we can be both

hopefully great leaders, computers, also great parents, wives, husbands. i do not think these things trade-off, they go together. emily: when you said you leave someone said, you could not 5:30, have gotten more publicity if you had murdered someone. it is fair, you probably do not leave work behind at 5:30. the expectations of modern workers are higher than ever. how do employers address them? sheryl: expectations are higher on both sides. you are right, when my parents were in the workforce, there was no internet. you could not work at home, and now you can. i am not pretending i leave work at 5:30 and do not come back again. of course i do. that the ability to go home, have dinner, and then work. it gives me the flexibility i need to be home. i think we need to communicate well with our employees. not everything is an emergency. i do send emails late at night.

i have a system -- if it is important and i need an answer i , will red flag it. if not, it can wait. i want to set it up so i can work the hours that make sense for me but not forcing them to to stay up after that late email to respond. emily: we will have much more from our exclusive conversation with sheryl sandberg. coming up, we discussed the company's corporate culture and what changes are on the way for facebook. bloomberg technology is live streaming on twitter. check us out 5:00 p.m. in new york, 2:00 p.m. in san francisco. this is bloomberg. ♪ who knew that phones would start doing everything?

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11:29 in it is singapore. reservear jumped as the bank of new zealand cap its cash rate at hold. the governor said worries remain about inflation and gdp growth, lower than expected. we will see headline inflation declining incoming quarters. headline inflation is likely to decline in coming quarters as the effect of higher fuel and food prices dissipates.

monetary policy will remain accommodative for a considerable time. uncertainties remain. policy may need to adjust accordingly. haslinda: virgin australia has reported a loss of $220 million aussie. they are forecasting improvement in the next quarter. add two routes to mainland china. the recent headlines about sexual harassment and hoover and the gender diversity route at google have put such behavior on the front page. google moved swiftly to fire an engineer who questioned women's ability to work in tech. sheryl sandberg said to

companies and employees must step up to the plate. day,l news, 24 hours a powered by 2700 journalists and analysts. this is bloomberg. shery: we are seeing trades ease up. two years ago, it was china. so far, we are seeing a mixed picture for equities. hangng lower with the seng. more vulnerable to shocks, given the-- valuations we do see. thers, toshiba, trade after lunch hour. shares up 1.3%.

the loss of qualified endorsement from its auditor. an loss, according to some of the analysts as well. emily: i am emily chang. let's return to our exclusive conversation with sheryl sandberg. facebook is competitive, but for with high rewards and benefits employees. in an age where companies already expect so much of their staff, i asked her if there is a downside. sheryl: we offer things, but we don't require it. we offer dinner, but we don't for dinner.come there are companies -- people who take it home in a box. i think companies have an obligation to do with a can for employees and that also means contractors. we did something two years ago

which was pretty unprecedented witches we announced we were going to pay all contractors who worked at companies of a certain size, they get paid a minimum wage of $15 per hour in the united states and get paid leave. that is something that more companies can do. i recognize the margins we have and we are able to do more. i think almost all companies could stretch to do more for their employees and offer their employees as much as they can. i think this is the 21st century commitment we need to people who work for us. that includes contractors. emily: the economy is changing the way we work,. how do we take care of those workers on a policy level? sheryl: i think we need to think about leave policies, pay policies, not just for their employees, but contractors. we did that a few years ago. i encourage others to do it. publiclet's talk about

policy. there is a really good bill out there. it covers men and women for 12 weeks, substantial wage reimbursement and that is the public policy we need. there is some progress at the state level. washington state became that fifth state to offer a really good paid leave policy. i don't think we can fully rely on companies. i hope all of them do as much as they can. we need strong, national policy. emily: apple built a brand-new campus with a gym, no childcare. tech companies have never shied away from radical solutions. should companies like apple and facebook are for childcare? sheryl: childcare is complicated in the sense that a

lot of companies have long week lists in a lot of places are not zoned for exceeded not have the zoned for it so you don't have the option for on-site. sure employees are paid enough that they can afford good childcare, whether it is offered on campus or elsewhere here at employees have the flexibility that when a child is sick, they are not worried about losing their jobs. we know that people who are employees of companies like apple and facebook, those companies are more likely to be able to provide those things as opposed to other companies. that is why we need to think about all the workers. emily: i'm curious how option b -- aligns with the message of "lean in. sharing is great, but can sharing hurt more? sheryl: if people ever had a son and a daughter, turns out those babies cry the same amount.

as adults, women cry more than men, we socialize that. i think our culture needs to change. where holding both men and women back. i believe the best leaders and managers do not shy away from a emotion. that doesn't mean we spent all day in a circle with tears. no one is saying that. it does mean that when some one has lost a child, how are you today? i'm thinking of you. what can i do to help you? on the way out of a meeting, are you sure you want to be here? but you know what, you made a great point. that is how you use eq combined with iq. i think the best managers are doing that. emily: there has been explosion of stories about sexual harassment in silicon valley. the seas have lost their jobs. vc's have lost their jobs. the ceo of uber has resigned, are you surprised? sheryl: i am hugely disappointed. the sexual harassment has been around for a long time.

it is abominable that it is still exists in this day and age. people know better. i think it is great that people lose their jobs, because i think that is what will get people to not do it in the future and i think it is a leadership challenge. as the leader of a company, there needs to be no tolerance for it, full stop. no one should go to work. emily: what is your advice for uber? sheryl: i think people tolerate what is encouraged and i think a great leader can deal with almost any situation. you put in new policies, new procedures, your language is different, i am always optimistic. emily: one uber investor said he would die to have you in that spot, and i'm sure even more so. why not? sheryl: i love facebook. i love my job. i love our mission about holding building community and i love the community that is this

company. i get to do one of the things i believe in with one of my great friends, mark zuckerberg, all day. there are people who can lead companies in ways that don't just prevent sexual harassment, because that is a basic. we can do better. emily: tech is a male dominated, despite your leadership on this topic. has it been harder to change the ratio than you thought? sheryl: our numbers are still low. they are low for women and underrepresented minorities, and it is a problem. it is hurting us. diverse teams make better decisions. we are having some success on the business side of the company. it is more than half women on the business side. i am proud of that. on the tech side it remains a struggle. there are 16% of computer science graduates today that are women, compared to 35% in the 1980's when the field was smaller. blacks and hispanics are not represented.

in order to hire computer scientists we have to persuade more women and minorities to go into computer science or we have a large internship program and we hire people of all backgrounds. we started going earlier in the program we created facebook university, trying to find women and underrepresented minorities who we thought could be great in computer science, but were not in the field so we get them earlier and invest in them. we have a large computer science and engineering lean in program. we do it with linkedin and my foundation and facebook trying to get women to feel like , they have peers right from the beginning. if you go to computer science class that you don't have enough women, if you can be in a lean in circle where you are seeing more women, and we need to do more, because we are not moving the numbers enough. emily: much more of our exclusive conversation, coming up. we discussed mark zuckerberg's latest mission across the u.s. this is bloomberg.

emily: with 2 billion global users, facebook is no longer about connecting the world, but bringing it closer together. that is according to ceo mark zuckerberg who recently went on tour around the u.s. as part of a personal challenge to visit all 50 states. in our exclusive interview with coo sheryl sandberg, i asked about this mission. sheryl: it is interesting. when i first came to facebook, mark told me he hadn't gotten to travel that much. he started the company before he graduated from college and he realized. he took a trip where he could see different parts of the world. he realized he hadn't understood and seen his own country. i think what he has learned has been really important for

facebook, because it is helping inform our products. when he rolls out a mission about being community-based, intel and communities, -- empowering communities, that was coming from a deep place of experience from what he was seeing was being found and lost in communities. mark and i, and all of the people that work here, we know we have a big responsibility and we want facebook to help do good in the world. we always have. and i think mark having that direct experience is helping us build the products. emily: facebook's mission is to bring people together through groups. do you think groups are the future of facebook? sheryl: i think the groups are important. they are one product manifestation of a community. emily: mark's talked about concerns of isolation and nationalism. and groups coalesce around like-minded views and interest. you think facebook is part of the solution, but it is that

also part of the problem? sheryl: any technology ever invented has been used for good and also for bad. we work hard to make sure the bed is not on facebook. i think groups are helpful, groups bring people together on different issues and you actually see a lot of troops that are pretty broad. one woman i met has a group bringing women of jewish and muslim faiths together. there are a lot of groups that serve the purpose of bringing people who would not otherwise connect together. that is a power of technology. a huge part of our user base has a cross-border connection. i think about that in my own life. when i was in high school or college, i didn't know anyone who did not live in our country. i grew up in miami. i didn't know anybody who grow outside miami. growing up now, i would probably have a friend from another country. emily: would you consider showing people news or information from the other side of the aisle?

what are people that think currently than me thinking? sheryl: we do that. people people worry that -- facebook put you in a news feed where everybody has the same views. to morege, by extending voices, you are exposed to more views. that doesn't mean everybody is being blasted by other views all day, they are not. i still think we all can do more to learn more about what other people think and what their experiences are. emily: what csapp is partially blocked in china. is mark's dream of connecting the world, highly unlikely? sheryl: facebook remains blocked there. emily: told our friend facebook is more like a government than i

a traditional company. how does facebook manage the scope of its policy, media, and different responsibilities in this modern age? sheryl: we try to do it by empowering local teams. we are not going to get everything right from menlo park. we have hired local teams on the ground, we have extraordinary leaders around the world and they make sure we understand what is going on in those countries. we are not perfect. we make mistakes. we try to address mistakes quickly and correct them. we are also really investing in community operations. we are hiring another 3000 people to work with our community hiring them around the and that is a pretty serious investment for us. world. we want to get policies right, get there quickly, and make sure we are staffed so we can be as responsive as possible. emily: if facebook is more like a government, what is your role? sheryl: we are a company. we are broadly used. we have a responsibility to put out a product that enables

enables them to share and keep harmful things from happening. we have a responsibility that when people use our products, and the report something, we try to get to it as quickly as possible. we have a responsibility to build teams that have empathy for local users. emily: facebook is pushing forward with artificial intelligence, hiring 3000 people to help moderate content. ultimately, this is a job that technology might be able to do. what do you see of the impact of automation on workers? sheryl: it has had a profound impact, we know that. i remember when you use to get money from a bank. check in with a person at an airline. we see technology across many industries, technology can also be used to grow jobs. we have 70 million small businesses that use facebook on a monthly basis. we just announced we have 15 million small businesses using

instagram on a monthly basis. these are mostly non-tech businesses using the power of technology to find their customers and build their businesses. we study our impact on the economy regularly and we care about the millions of jobs we create and we work really hard to help small businesses use technology to help them thrive, and importantly, not just tech businesses, but all businesses. emily: facebook is making a huge push into video, and many people think it might be like a competitor to youtube. sheryl: it is about technological advancement. four years ago, if you tried to post a video, you couldn't. if you try to watch a video, it would be super annoying. video is exploding because the technology is there. we are making sure people can share and consume content in any way they want. video is an important part of that. emily: facebook has taken on many of snapchat's most important ideas, they say imitation is the highest form of flattery.

do you think there is room for another social work in the facebook empire? sheryl: mobile time is exploding. people are using more and more mobile time, more and more social time. i remember interviewing for this saying more things are going to be social. that is what is happening. there is lots of room for companies to offer services. emily: i have heard you talk about how much you enjoy visiting lean in circles and women talking about challenges want to take on? what do you want to take on? sheryl: i feel fully challenged. facebook just hit 2 billion users around the world. we know how deep our responsibility is and i love working with mark. i am glad i wrote option b. i think it it was important -- if it helped just one person, then that gives dave's life a little more meaning and that has all the meaning in the world for me. emily: would you ever run for

office? sheryl: no. emily: you have been here nine years. what are you most proud of and what do you hope to do? sheryl: i am proud of our people , our teams. they believe in our mission, they work so hard to get it right. they correct when they need to and they are building products that we are proud of. i am proud of them and grateful we are on this team. i think there is a lot we still need to get right, we still need to build products and services that allow people to connect and share in authentic ways. emily: thank you so much. that was our conversation with sheryl sandberg. i want to bring in our correspondent. i know you were curious to her answers on some of those questions. what did you think? >> there are few more polished public speakers. i think there are extremely few business leaders who can talk

ndth such sensitivity a depth about human issues. she is eloquent about that stuff. how many other business leaders have written two books about social development for women and emotional reaction to a death? she is an unusual person. this is a company with two leaders who have very sophisticated high values that i think really are in usual in business, period. they have an unbelievable challenge running that company, which as you try to get in that interview is a unique entity , scale globally and a challenge with its scale globally and a challenge like no other business has ever really had. i don't think they even know how they're going to handle that, but she is an extraordinary later. it comes through loud and clear. congratulations on a great interview. emily: thank you. great to have you here. i think you are sticking around. coming up, snapped reports earnings. what wall street wants to see

from the company, next. this is bloomberg. ♪

emily: the company of snapchat has taken investors for a wild ride since its march public trading debut, what does wall street want to see? bloomberg tech, take a look. >> investors will have their site set for signs of growth. snap's growth over the last six quarters has stagnated. also adding to the apprehension, instagram. since it copied snapchat's disappearing stories feature, it has been able to grow even more quickly. instagram daily users have hit 250 us million. surpassing snapchat's. that milestone added fuel to concerns whether snapchat could compete with a juggernaut like facebook. shares have plummeted over 20% since the company's debut. what will they have to do?

>> they need to re-accelerate the daily average users growth. the same thing with twitter, if it is the user's decline, stock will decline. snap needs to get that growth rate reaccelerate he. they have rolled out a self-service advertising solution, they need to do that to get more advertisers on the network and cause their ad revenue growth to stabilize. doesn't appear that snap is prioritizing user growth, they ir strategy is to focus on quality rather than quantity. they will strive to generate more revenue from existing users. that would allow sales to go up even if its user base doesn't significantly increase. that hasn't been enough to convince wall street to measure it any differently than facebook. sarah frier, bloomberg news. emily: on thursday, sheryl, we will have complete coverage and analysis of those results from snap. that does it for "bloomberg technology." this is bloomberg. we will see you tomorrow. got you outnumbered.

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