alisa: i am alisa parenti in washington and you are watching "bloomberg technology." we start with a check of your first word news. president trump is thanking vladimir putin for expelling more than 700 u.s. diplomats. speaking in new jersey today, he said the administration has been trying to cut down payroll and putin may have done them a favor. trump said there is no reason for those diplomats to go back. putin kicked them out in retaliation for u.s. sanctions. president trump said his fire and fury warning for north korea is backed by everybody. that is after pyongyang dismissed it as nonsense. speaking also in new jersey, we heard trump refusing to roll out a preemptive strike. he said north korea better get their act together.

the president continues to express his disappointment as congress fails to repeal obamacare. that is after spending the last two days criticizing mitch mcconnell on twitter. trump said after hearing about replacing a house law for seven years, he just wants mcconnell to get it done. john mccain says america is adrift in afghanistan. the arizona senator made that declaration today as he unveiled the war strategy that includes more u.s. combat forces and increases counterterrorism efforts. he says u.s. soldiers are putting themselves on the line and they deserve better. 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. ♪

caroline: i am caroline hyde, in for emily chang. this is "bloomberg technology." coming up the in-house drama , continues at the world's most valuable start up. former uber ceo travis kalanick driven further away. uber's longest-running executive ryan graves decides to step down. plus, snap user growth fails to impress and revenue misses in the face of the competition. we breakdown today's disappointing second-quarter report. rising geopolitical tensions rattle financial markets. u.s. stocks, as tensions between the u.s. and north korea continue to escalate. we will bring you the latest at this hour. first, to our lead. drama in uber continues to unfold. benchmark capital, which has a 13% stake in uber, filed a lawsuit to remove former ceo, travis kalanick, from the board. benchmark alleges kalanick

engaged in fraud by misleading investors about his effort -- allies willing to keep him a director. this, after he was removed by the top executive, according to the suit. a representative for kalanick responded to the news, saying the lawsuit is without merit and , riddled with lies and false allegations. this is continued evidence of benchmark acting in its own best interest, contrary to uber, its employees, and shareholders. also breaking today, uber's one time seo ryan graves is stepping down from his current managerial role in the company. let's go to brad stone in san francisco who wrote about uber in his book "the upstarts." the continuation of this has become a bitter rivalry, seems to be a point between benchmark capital and travis kalanick. tell us about this unfolding. does it mean travis will be removed from the board, do you think?

brad: we will have to see how the lawsuit plays out. you are right, it is a bitter rivalry between one-time allies, benchmark, one of the first capital investors in uber. and travis kalanick, one of the founders and personal investors and second ceo to raise the company to great heights, a $70 billion valuation. you can look at these past months in many different ways. you can see it as the chicken of bad management that has come to roost. but also as a complete deterioration in the relationship between benchmark and its founder, bill gurley. and travis kalanick. i think they fundamentally disagreed on how to run the company, when it should go public, and who should be the next ceo. the each own equal parts of the company and pretty much have equal voting power. this lawsuit is evidence they cannot figure out a path forward. caroline: it is amazing thinking back to your book, where we saw bill gurley driving after uber, after travis, wanting to

get the piece of the pie. benchmark capital has 13%. could we see the 10% or thereabouts travis kalanick still holds having to be distributed back to the board? that is a $7 billion valuation on that stake. brad: i do not think he would lose his stake. when he was trying to hang on to was his board position and influence at the company. nominally this lawsuit is about , three new board seats the board authorized to be created in june 2016, which travis controlled. when he departed as the ceo, which seems like a year ago, but was only a couple weeks ago, he apparently pledged he would give up those seats. now he occupies one of the seats and has never signed documentation giving up his power to control or appoint those two board members. that is why nominally, benchmark is suing. they are saying travis is trying to hang on to exert control.

, they saids designs he was steve jobsing it. or boomer ranking -- bo omeranging back to the company one day. they want to find someone as aggressive, ambitious, hard driving as he was as uber's ceo, and benchmark has a new idea. they want a more professional, perhaps less dramatic ceo. they cannot agree, so they have a lawsuit. ,aroline: another former ceo the ceo travis kalanick hired, none other than ryan graves. he has said, i am out of managerial roles, but i'm staying on the board. is this timing all wrapped up with the lawsuit -- what pushed him over the edge to stand down? brad: i do not think it is related at all. ryan graves was the first ceo and one of travis's right hand. -- right-hand executives. he was a spiritual leader at

uber. he ran for many years the operations, 500 cities, at the time, a decentralized structure. over the past couple months he has been ceding control of the company, his domain has shrunk. he was feeling burnt out, so he has focused on his board responsibilities and finding the next ceo. i do think this is a blow for uber. this is someone who knew the culture and can really be a guide to the ceo, whoever that may be. i think he still will have a role on the board. but do have an operational role would have been an advantage for the next ceo of uber. for everyone's most dramatic $70 billion startup. caroline: one of the key investors that is slightly tarnished in his reputation, took to twitter. there was a twitter storm we saw. he was talking about ryan graves and how he has consistently been

respected by others on the board and is great at building consensus. how does it go with the new ceo search? and indeed, morale at the company? the new ceo search, as eric newcomer and others have reported, it drags on. they are down to three candidates. one is said to be former ge ceo. meg whitman took herself out of contention a couple weeks ago. she was rumored to be on the short list. they have talked about wanting to appoint someone by labor day. i think they are at an impasse. there is a different vision between travis and his allies, and benchmark and its allies, about what kind of ceo uber needs. tied into that, when should this company go public, and perhaps take its foot off the gas? this is a very divided board with a lot of bad history, and bad feelings and now a lawsuit. frankly, they are stuck on the way forward.

my guess is it might still be , weeks or months before we have a new uber ceo. your second question about morale, it cannot be good at uber, with one thing after another. people have to be wishing this drama was behind them. caroline: i am sure they do. bloomberg's brad stone, i know you will be there every step of the way. along with eric newcomer and your team. meanwhile, microsoft and kaspersky lab had antitrust complaints in europe and an investigation in russia. as part of the agreement, the software giant will make change mints to the next version of windows this fall. complained to antitrust regulators that microsoft was favoring its own software. coming up snap misses the mark , on daily active users by 2 million. the company's second-quarter earnings, next. this is bloomberg. ♪ caroline: snap shares are

plummeting in late trading after reporting second-quarter earnings. the company's growth fell short of estimates, fueling fears that aggressive competition from facebook is blunting snap's potential, just months after its ipo. revenue, $181 million missing that $185 million estimate. snap's earnings call just starting. we will give you headlines throughout the hour. we're joined by james cakmak and cory johnson. both have been digging over the numbers. shares are down 15% in after-hours trading. james, talk to us about the fact that they missed. is it daily active users they are worried about -- lack of revenue monetization? , james: i agree that the shares

are plummeting. i disagree the headlines that this is a facebook affect. i think 100% of the problems we we are seeing at snapchat are self-inflicted. they're not doubling down on core areas of expertise that we thought they could capitalize on like the content side of the , picture. are not educating the existing users and potential new users on new product iterations. when you look at the metrics, i thought the user number was fine. not too far off what the street was looking for. the issue was on the monetization side because you see a much flatter trajectory than what would be expected from a company at this stage. that is why the red flags are starting to go up. caroline: looking at some of the headlines, snap saying since the mac launch, stories are up 30%. the ceo and cofounder saying they are not planning to sell shares this year. let's look at the story unfolding.

average revenue per user, this is an all-important metric, and it is not driven up quickly. do we have to wait a little until they get the big app players in? cory: there are a lot of problems here. if you look at the year on year basis, it is an improvement, nearly doubled, from $.50 to $1.05. the hope was they would have a big and growing platform and grow a lot of users, and turn on the ads, go to places they had never gone before, and dump them in. that is not happening, we can see that from the numbers. there are a lot of reasons it is not happening. major advertisers have not come on their side, as they hoped they would. they might yet, but they have not. there are technological issues. james and i were sitting here listening to the call, his jaw dropped. the problems they have with

android, which is pretty important because most phones are android phones in the world -- they will not be fixed until next year. these are self-inflicted wounds, as james so smartly said. this company is showing that they are having real issues doing the basic tackling to make their company available for the revenues that might want to come to it. caroline: when you are gauging potentially the stories that unfold from facebook and instagram, 250 million users on instagram. verses 173 million we see today from snap. where do see the making inroads on the market share, particularly for the likes of mobile ad market? the market thinks it will get 0.6% of the global pie? i am shocked you do not think this is a competition issue.

is 0.6%.ght point six it is english -- caroline: it is a british thing. james: you took the words out of my mouth. to conceptualize it, it is less than 6% of the global budget. when you think about the fact that two companies command 85%, 90% of the global revenue, companies want to explore a third alternative, which is what snapchat has become. there is too much emphasis placed on the user growth. if they were able to get the content side of the equation, which they are armed with multibillion dollars of cash on the ipo to spend on that comment, and at the same time improve on the comment at a faster pace of iteration, you can see that number creep up at a much faster rate. the fact that that is not happening --

[indiscernible] cory: faith is belief in things unseen, and james has faith. caroline: james, you are one of the first with a buy recommendation on snap -- do you stick by that buy? james: i cannot tell you now. i can tell you, the way we position the quarter, the preview into the quarter, was, this is a make or break story. the numbers are not suggesting tion ofdmission -- reigni the growth on the monetization. but we need to understand -- the numbers do not speak too favorably for the balance for the outlook of the year. caroline: james cakmak from monness, crespi hardt & co, thank you. amid that investor and analyst call, let's look at earnings. blue apron giving investors a sour taste after its first report.

shares of the meal kit delivery service falling after a lost customers in the second quarter. cory, you have been pouring over this one, as well. revenue did beat in the circumstance. it is all about having to rein back its marketing spending and therefore customers that use the product. cory: when i think of marketing, whether blue apron or any other company, usefully, we can see the effect of marketing. they do not give us all the numbers we would like to see, most importantly, the return rate. but they do tell us how many subscribers they have and what the marketing cost was to get them. think of marketing as a way to drive the business, like putting a pedal on the gas, if you take the pedal off the gas, you see how well the car rolls without the gas. what we saw, they took them pedal off the gas, but then user growth fell apart.

what this shows me is that customers at blue apron do not like the service enough to not keep buying it without hit with -- being hit by advertisements. whether that means people stand up for a limited period of time, and every customer, we do not know that because we do not know the average life of a customer, we would like to know how long customers stay with them and how the service works. food is a great business, restaurants are a wonderful thing when they are good. the question for blue apron, maybe the users do not want to stay with the service. caroline: we know how hard margins can be in the restaurant business, as well. particularly when you have amazon trying to eat lunch on your business model, as well. pardon the pun. their -- i went there, cory. in and get hurt

even more when blue apron is managing all on its own. cory: i do not see amazon as a big competitor they do not have , an offering to speak of. there are other companies doing this. whether it is sunbasket or a green alternative, it is an attractive idea because the revenue is so high. when you get a user spending thousands of dollars a year on the service, if the business is successful, you can imagine why so many would try. but it is a tricky business, the food business. the food delivery business, also tricky. eating is fun, cooking is fun, cooking for someone you love is even more fun. taking the decision process away from that could be a good thing. it is why we have the food network on tv, and recipes in every newspaper and magazine out there, it is why we have cookbooks. to make this so much simpler using technology is a very attractive business. but blue apron does not have the mix right yet. and taking their foot off of marketing is a problem.

caroline: a big problem if you are company trying to go public anytime soon. hellofresh is the european competitor. cory, great to have you. thank you for breaking snap and blue apron down for us. the biggest day of losses for u.s. stocks since may. this as president trump dialed up his warnings to north korea. this is bloomberg. ♪ caroline: now, to the moves we

saw in the u.s. stocks today. amid tensions between the u.s. and north korea, equities sold off into the close. benchmark is having the worst day since may. joining us from new york is abigail doolittle. not a good day for these markets. abigail: it certainly was ugly, especially the nasdaq, finishing right at the lowest.

down more than 2%. that tech heavy nasdaq. i asked street contacts whether or not this pullback we saw today was anything like the pullback we saw in june. june 9 there was a big selloff backhen the nasdaq pulled 4% from there, only to rally. today, more caution. a number of those contacts were more focused on the macro picture, not whether it had to do with tech. one made the interesting point that we have three down days in a row. what changed the trading action feels a little more emotional, which means we could see more downside. others on the street are saying we could see a bit of a correction, a long overdue correction. one reason we break down the nasdaq, there are other momentum sectors. the nasdaq biotech index and the

sox, and philadelphia semiconductor index sold far more than the nasdaq and nasdaq 100. sometimes investors see that is a tell on bearish action, maybe this dip turns into something more. as for what really dragged down the nasdaq today, some of those big names -- apple, facebook, amazon, microsoft. interestingly, as is often the case nothing new, fundamentally, , to bring them down. but some of these stocks have a higher levels of data and on up or down days they tend to swing in a more significant way. caroline: talking about swinging, i want to take a quick look at what is happening to chipmakers. if you go into the terminal, g #btv 7430, nvidia weighing on the chip stocks. talk to us about nvidia. the numbers looked all right for the chip designer.

but is the devil in the details? abigail: in that chart, in white is nvidia. you see the stock is sky high on the year, up more than 50%. expectations going into the quarter were very, very high. as you mentioned, the numbers were good. they beat in a significant way, 01 versus $.83. a bloomberg intelligence analyst said it is a clean quarter. one flaw is that the data center growth was disappointing. but relative to the stock, it has been down less than nvidia. so that makes sense. the point i would like to make, at -- a oppenheimer technical analyst made the point that the one concern to him is, the stock did not put in a new high, relative to the nasdaq just recently, and that that could be

a tell. with nvidia's weakness, maybe there could be more ahead. caroline: we will be talking google. ♪ we check our phones 85 times a day.

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and 1:29 a.m. in singapore. -- in sydney. angela merkel has a commanding lead with the election just six weeks away. 39% supportains with the spd at 29%. she was the first female chancellor in germany. she is europe's longest leader and is seeking a fourth term next month. we keep a close eye on germany during the election. do not miss our special at 3:30 hong kong time.

we will have market analysis ahead of the vote. the u.s. is moving forward with a criminal investigation into money stolen from the malaysian 1mdb.ment fund imdb -- the u.s. alleges $1.7 billion was used to buy real estate in new york, london, and beverly hills. the reserve bank of india paid the government annual dividends which mayllion, strain public finances far less than previous transfers. the r.b.i. paid more than twice as much last year, and even more than that in 2015. bloomberg reported earlier the government had budgeted for dividends of $9 billion. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries.

i am paul allen. this is bloomberg. >> i am david ingles. the last market to open up in asia pacific in a few minutes or so. if this is an indication, it is a close your eyes indication. a 1% drop across stoxx. -- stocks. poised for the worst day since the u.s. election. hong kong not doing as good. 1.5% of the break over in china. forex, and sovereign bond it at the moment. just about every single sector is down at the moment. one thing i would like to point out is within the mining space there is a bright spot. in gold mining, there is a move up. we are now closer to 1300. 1286, a little closer.

5% to 10% of your portfolio should be in this. 200 day moving averages where you want to watch. do we close below that is the key question here. it is very much at risk off. ♪ caroline: this is "bloomberg technology," i am caroline hyde, in for emily chang. isgle's ceo sundar pichai set to hold a town hall meeting with employees on thursday. the discussion is about the recent diversity memo from the fire google engineer james , damore. he caused an uproar in silicon valley after he off an internal third 10 page memo that said there are biological causes between gender inequality in the tech industry. bloomberg's emily chang spoke with james damore in an exclusive. she asked if he had regrets about releasing the controversial memo. james: it is hard to regret it

because i do believe i am trying to make google and the world in general a better place, by not confining us to our ideological echo chambers, where only one kind of a story can be heard, and it is totally intolerant to other viewpoints, and even scientific evidence. emily: what scientific evidence are you talking about? in the follow-up to your piece, there has been plenty of discussion about this. and discussion about the fact there is no research to support , this idea that there are biological causes for the lack of women in tech or the lack of women in leadership positions. i spoke to megan smith who worked at google, a former cpo for the united states. she said this is a myth. james: among psychologists there is a consensus that prenatal

testosterone does affect a lot of personality traits. in particular, one's interest in people versus things. i am not saying all men are different from all women, just that there is a distribution of these personality traits. that distribution differs between men and women. there are very many capable women at google. i am not trying to say any of them are any worse than average male engineers at google. i was trying to address why we do not have equal representation from the population. emily: susan wojcicki wrote an impassioned response to this and said your memo, had it been about black people or latinos, or the lgbt community, you would not have anyone defending you. how do you respond to that?

james: that is just a false analogy. she is trying to lump me in with racists and other bigots, which i am not. i am not a sexist and i am not a racist. i think that is just trying to smear my image, rather than actually looking at the evidence. very little of the responses have been actually looking at the science. they have just been calling me names or nitpicks of, oh, the formatting was a little wrong. or the original leaked document that someone else leaked did not have citations, when my original document did. emily: you are arguing for ideological inclusion. don't you think that extends to women and minorities and all kinds of people? google is making products for the world. don't you need to have all kinds of people making those products? james: yes, i support diversity

and inclusion. i think that also, our lack of ideological diversity has hurt our projects, or our products. it makes us think that, for example, just the stereotype that all conservatives are stupid, for example, that is widely held within very left-leaning circles. that has hurt us. it makes us alienate large portions of the population. caroline: that was former google engineer james damore speaking exclusively to emily chang. google ceo sundar pichai has also issued a statement. he says, our job is to build great products to make a great difference in our user's lives. to suggest a group of our colleagues are less biologically suited to the work is offensive and not ok. joining me now for a deeper look is ellen huet, who has been reporting on this story and diversity at large.

talk to us about the town hall meeting that sundar pichai will be holding with all of google today. is this a rare occurrence? what does he want to achieve by it? ellen: the town hall meeting is a tgif, weekly google meeting that is usually on fridays. but it will be a hotly watched tgif. i talked to sources within google who are not in mountain view and say they will dial-in. they are interested to hear what sundar has to say about this memo. he cut his vacation short in order to address the company about this. ahead of time, you can see googlers internally voting for questions they want to address at the meeting. it seems like they are very interested in, how can we make sure we make google a place that is comfortable for everyone, and make sure it is a place where employees feel like they can express their views without getting fired?

which is a concern mr. damore had originally brought up in his memo. caroline: do you think there might be some ways of issuing and easing concerns to those that might be of a conservative persuasion working in google? it has not been brought up just by james damore, but at the shareholder meeting in june or earlier this year. a shareholder bought up the point that they felt perhaps conservatives are not welcomed by google. ellen: if you talk to people who are supporters of james damore, he said the same thing in his memo and in interviews afterward, there is the idea of a silent minority of conservatives who do not feel safe speaking up about their political points of view because it is not a commonly held belief at google. you are right, it has implications for how google is viewed. and very large silicon valley companies tend to lean left. that has had a facts and how they have had to deal with --

facebook has had to deal with allegations that they suppress conservative content. this extends a little farther than just this one engineer and his time at google. caroline: has anyone spoken out in support within google for james damore? ellen: i think there is this idea -- he said yesterday in his interview with emily, to speak up for support of him within google would be "career suicide." while he said many have sent him private messages of support it , is far less likely they are posting internally publicly. there are a lot of internal boards a google employees can look at. many have had messages that are not in support of him. but he said many have expressed to him privately that they agree with a some or many of the things he put forth. caroline: what about the legal action he mentioned as well in his interview? he has already filed a charge with the national labor

relations board, regarding protection versus employer retaliation -- where do they stand with that? ellen: the charge is very new, it was filed on monday. he did tell emily he was planning to pursue legal action. he would not clarify whether it would be a wrongful termination lawsuit. it remains to be seen. it has only been a few days since he was fired. he has met with human resources several times a week before the memo was published, apparently, to bring up his concerns over what he saw as illegal hiring practices within google. also one of the arguments he made before and after he was fired. caroline: a great interview by emily, great reporting by yourself. i know you will sit with this story, ellen huet. thank you for joining us. coinbase received a $100 million investment from a group, ivp. it comes amid a delicate time for the digital currency

exchange. in just the past few months they suffered a trading crash and upset customers over how they handled the bitcoin fall. bitcoin plans to spend the money on engineering and customer support staff. they are aiming to open a new york office for the professional training platform. coming up, softbank continues its recent spending spree. we look at the latest wide-ranging investments. we continue to monitor snap earnings, despite pressures on the shares. he will not beys selling his this year. take a listen. >> given speculation i feel it , is important to note that bobby and i will not sell any of our shares this year. the company will withhold the shares this year to meet our obligations. we believe deeply in the long-term success of snap. ♪ caroline: softbank's vision

fund is continuing its spending spree, investing $2.5 billion in the indian e-commerce giant, flipkart. in india, e-commerce is expected to grow 30% each year for the next five years. meanwhile, the investment firm stop by softbank's mashayoshi son is not stopping there. are in late stage talks with a major investment in a drug startup in the netherlands. joining me from san francisco is executive editor. tom, great to see you. let's focus on india first.

mashayoshi son also had an investment in the rival deal. they have gone in, guns blazing. and they are the number one investor in flipkart now. tom: where will mashayoshi son and his investments? he is everywhere, seemingly both geographically and industrywide, to hone in on the india question, you are right. he did try to orchestrate some kind of a merger between these two rivals. the better to fend off of the amazon threat, which seems to be very real and also ubiquitous, much like the softbank vision fund. that did not pan out. the next best thing is to invest the capital in both of the companies, so they at least have a fighting chance against this war chest that amazon has. it is a big market, 500 million people. e-commerce is really taking off in india in all kinds of ways. better to invest in two different rivals and have amazon

take the one you have that you are invested in and tear it apart and not give help to the , other one. caroline: there was a reputation thing with amazon, he was one of the first investors in alibaba. they made significant returns. what is so significant about the vision fund and mashayoshi son, is the sheer breadth of this. you look at what ridesharing has gone into across several countries and chipmaking, e-commerce. you name it they have made big , investments. nvidia, $4.3 billion. saw $5 billion. where else are they looking? in europe they are looking at potentially a little bit of pharma action. tom: what they are doing, one of them is benevolent. roivent also in talks with

another company called benevolent ai. what these do is use machine learning artificial , intelligence, to help root out new drugs, new ways of fighting disease, using the machines to speed up drug discovery. this is an emerging area, it has proved of interest to the likes of gates. it is one that is definitely caught a lot of people's eye. we talked to people close to the vision fund that told us we would see them bulk up their staffing. they will be adding people that can help them understand this field better. it is not my area of expertise, i know that for sure. fundt is one that vision with these two investments, they the one that has been announced and the potential one, are areas they could get into a new area. caroline: we know mashayoshi son

has a such ambitions. he wants to be the biggest tech investor in the world. at an earnings conference he was talking about getting in to lyft and uber. or whoever might be the ridesharing behemoths in the u.s. can you paint a vision of the vision is for the vision fund? to be in everything and anything? tom: there is a running joke that every time we hear the scuttlebutt about a potential investment or the startup looking to raise funds or find a strategic partner, the next question becomes, have they talked to vision fund? or, where is vision fund in all of this? they do seem to have their fingerprints on every deal, or rumors of their fingerprints on every deal. multiple industries, it is a lot of money. my question on uber and lyft is, can you get into uber on a lower valuation? this is the most valuable

company startup in the world, essentially. what week heard, they might come in at a lower valuation than they are already in. part of the vision fund is from saudi investors that already have a piece of uber at a higher valuation. do you want to have your partner come in and undercut your existing investments at a lower valuation? that could be a little complicated, a little tricky. definitely you will see the vision fund across many more industries and many more geographies. caroline: fascinating, making some big bets in europe. this is worldwide. bloomberg technology's executive editor tom giles, great to get , your take on all of it. coming up, users have been flocking to videos on facebook. now the social media giant , working on more eyeballs on the platform. this is bloomberg. ♪ caroline: the amount of videos

on facebook has exploded over the past few years, giving the social media giant a new way to bring in ad dollars. now the company is attempting to gain even more viewers with the launch of its new video platform. sarah frier covers the company for us. quite fascinating. sarah: watch is facebook's attempt to get viewers to talk about the videos as they occur. it is more episodic content, short video content, the likes of which you might find on youtube. some of it is more reality tv. some of it is more exploratory. there is a whole series where people go to try to taste the best teas in the world.

they are hoping what people will do in this watch section is look at videos, recommend them to their friends, comment on them as they are happening, and come back again as the next episodes show. caroline: is this aimed at millennials? who is the competition here -- is it amazon, netflix, youtube? sarah: from what we have seen in the market, it seems like it is youtube, similar in terms of the social aspect of it. on facebook they say they are set apart by the fact that your whole social network is on facebook. it may be more of a fan-based thing. this is internet-style content, as opposed to what we have seen from netflix and the like. it is partners like vice and the sports teams and everyone coming to facebook to make this content, and hopefully make some money off it.

they gathered a lot of influencers and creators who can come in may content for facebook and then share revenue on the ads they sell and make money off of branding that content through sponsors. caroline: i have to ask you, you cover facebook and snap. snap itself has been pushing into video aimed at millennials. "good luck america" is part of their original programming. has it been working at all? sarah: snap is focused on episodic video that is mobile-first. they want their videos to be shot in vertical format, to be short and sweet. the way that we would watch a movie trailer on tv. totally different from the way it shows up on snap.

they want to reinvent how we view tv on the phone. they have this available on mobile, but also desktops, browsers, and tv apps. caroline: making it easier to woo in content. i am looking at snap, down 17% after hours. did anything come out on the call that struck you as the , reporter on this? sarah: evan went through some great stats. even if the user base is not growing i was interested to hear spend on average, people 20 snaps a day. evan and his cofounder, bobby murphy, are not planning to sell any of their shares this year. caroline: fascinating. we will see who else exits. currently down 17% after hours. that does it for this edition of "bloomberg technology." we're live streaming on twitter. check us out weekdays 5:00 p.m. in new york, 2:00 p.m. in san francisco, 10:00 p.m. here in london. this is bloomberg. ♪

is this a phone?

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