don'tent trump: if we change the legislation and get rid of these loopholes where killers are allowed to come into our country and continue to kill. gang members. we were talking about ms 13. there are many gang members that we should mention. if we don't change it, let's have a shutdown. we will do a shutdown and it is worth it for our country. i would love to see a shutdown if we don't get this stuff taken care of. the white house chief of staff john kelly said the president will be briefed today on the democratic rebuttal of the gop memo alleging bias that doj. ei and doj -- fbi and he has until friday to block the release. and an infrastructure proposal next monday, hoping to generate $1.5 trillion in ending on roads, bridges, airports, and other public works. only $200 billion would come from the federal government.

the pentagon says the war in afghanistan is costing u.s. taxpayers $45 billion a year. lawmakers grilled the trump administration today. global news 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ emily: i'm emily chang this is bloomberg technology. after-hours trading soaring as much as 30% after smashing estimates in the fourth order. we will break down the company's first earnings victory since it went public. and the take on the gender dynamic in silicon valley. it might sluice of conversation with a paypal cofounder. and a move to get workplace culture right. stand, thetakes the

courtroom short down -- showdown between uber and waymo. but first, to our lead. snap jumping in after-hours after fourth-quarter earnings reports with top analyst estimates for the first time since the company went public almost a year ago. the earnings were buoyed by momentum in the advertising business and user growth. snapchat fourth-quarter sales jumped to $285 million and daily active users jumped to 287 million, of 18% from a year ago. joining us from seattle is debra williamson, and sarah frier who covers snap for us. what did snap get right this quarter? been: they had transitioning their advertising business to make this more automatic and programmatic, meaning that they can have a bigger base of advertisers. the price of that have gone down.

but the volume and the amount of time people look at these ads go up. snap has been able to make this work for them in the first quarter for the first time. emily: deborah, what is jumping out to you? there is a redesign and perhaps we are seeing some of the results of that. what is driving these results? >> i think it is a couple of factors. first of all, snapchat really needed this quarter. ,ecause the previous quarter not so good for them. this is a positive sign for the company. users areeel that still heavily engaged with snapchat. that is proven by the increase in user growth rate this quarter. think advertisers, some of them have been skeptical. but they still see snapchat is being a place where they can be super experimental. where they can try new things. where they can really start to

engage with the super important use and teen audience. emily: i'm looking at the after-hours chart on bloomberg, still up 20%. it can we sustain this over several quarters, not just one? still a think that is huge question because this company has not proven it has this ability looking into the future of the business. including big surprises, nothing to show us that future quarters want as well. they still have a long road ahead of them. they are competing in this market that is dominated by facebook and you goal -- google. advertisers wanting alternative for their money, snap is marketing itself as an alternative. but still, it is very competitive. is growing past with snap has.

the way that snap actually invented it. and facebook copied it. emily: they have been accused of lifting some of snap's product ideas and executing them, perhaps, even better. what are the challenges for snap going forward in terms of what you will be watching? debra: first of all, to put a few numbers up like sarah just said. we are forecasting instagram of have a billion dollars in ad revenue this year compared to $1.5 billion for snapchat. there is quite a gap in between the two companies in terms of advertising revenue worldwide. snapchat is growing at roughly the same rate. about 90% growth this year compared to a similar amount for instagram. just putting those numbers on it. but back to your question, i think the competition with instagram it faced look is still something we are watching closely. we are also watching, because

snapchat up until now has been very aggressive with new products and innovations. we are seeing things like maps not perform as well as maybe the company hoped. we saw spectacles not perform as well as the company hoped. can snapchat actually continue to be aggressively innovative and successful with those innovations, staying a step ahead of its competition? emily: what about the leadership change over at the company? is that a concern? debra: not so much. you obviously want strong leaders. we focus on growth in ad revenue, changes in ad revenue, user changes. both of those were positive this quarter. so i don't think the changes in management of the company are something that is impacting either of those sectors at this point. it's been made clear that people that work at the company want to hear from him more. will we see more of him out

there? there is a lot of confusion at the company right now because this redesign that you mentioned earlier, it was supposed to be done by the end of the year. and now we see it will be fully rolled out until the end of the first quarter. so there are clearly some things that are still missing deadlines. that management departure that you mentioned. have also been a few rounds of layoff recently at the company. emily: sarah frier, i know you'll keep a surprise -- keep us apprised. and debra williamson, thank you. now to the broader market with flash with the dow turning in its best performance in two years and tech shares helping lead the comeback after a two day pummeling that sent the global equity market volatility back to the forefront as the stocks saw wild swings on the day.

it are bring us highlights our is bloomberg reporter abigail doolittle. lot to: we've had a report on. we had major averages down more than 2% and going between gains and losses on the day. and the rebound rally at the end of the day, snapping up the high-quality names like apple, amazon, macron, nvidia. that fear of missing out. the question is whether or not we will see the buying power last because the technicals are a little shaky for the major averages. if we look at the major averages, they are still down about 5%. at that standpoint, sellers are in control. a little bit of relief for the buyers today on the day, right at the end of the day. emily: is the volatility going to last? abigail: it may. take a look at the nasdaq. first, let's walk through today. this is today. you conceal these whips.

the morning on the open, a lower low suggesting that maybe we were going to be pummeled once again. is, whether or not this is the bottom. probably not. there's probably a little bit more selling pressure and you will have to take other technicals into account. oh we will see, maybe buyers will get gritty and the fear on missing out on tech names and the rally, buying amazon thinking this will be the low. time will tell. we are looking at losses still. of the week is young. emily: bitcoin ending the day slightly low after hitting a big low over the last week. abigail: what a story of the year. the cryptocurrency. there is not a lot of evidence to point to. you can talk about regulations, credit cards, banks not wanting to use the cryptocurrency.

you can usee technicals. pure supply and demand. when the corn was probably closer to 13,000 or 14,000, it could go to 1000. these are the technicals. last year, the big uptrend. buyers in control. then we have a range between the buyers and the sellers. took control.rs this entire range could drop from the downside. headed towards $1000. it is still a possibility. volatility, uncertainty. stay tuned. emily: keep us posted. thank you very much. disney also posted first-quarter results. theme parksds at including the avatar theme park helped the world's largest entertainment company beat on the top line. comebackstudios big awaits a bigger slate of films

including black panther this month. revenue totaled more than $15 billion but missed wall street forecast. paypal cofounder sits down with us to discuss how his opinions about diversity and meritocracy in silicon valley have evolved. if you like bloomberg news, check us out on the bloomberg radio app. and in the u.s. on sirius xm. this is bloomberg. ♪

back onpple is pulling

buying corporate bonds with the overseas cash as it prepares to bring money home to the u.s.. this is according to people familiar with the matter. $157 billion worth of the $285 million -- billion dollars in cash is making it a leading lender. investors have been bracing for a market with fewer buyers and the new u.s. tax law was enacted late last year. as one of the cofounders of paypal rose to be one of the most powerful men in technology, taking a center seat in silicon valley. hisin that position, opinion on diversity and hiring has greatly evolved. i covered his story in my book, breaking up the boys of of silicon valley which it stores today. i caught up with max to discuss how things operated at paypal and beyond. i would describe my efforts at the time with the benefit of hindsight is generally unaware. concernedparticularly

. i was trying to hire good people as quickly as i could. and the one great source of excellent coders was my alma mater where i came from two years prior. i was actively vacuuming up the best and brightest that i had spent time with which all happened to the men. they were men of lots of diverse ethnic origins, but there were very few women even in my class, which was quite large. and the few that i did know switched majors from computer sciences something else. emily: what you probably didn't realize was that you are becoming part of one of the most powerful network in silicon valley history which has come to be known as the paypal mafia. a group of influential people that all happened to the men. what is your take away from that? -- it's not unique.

startup,cessful especially one that selects from drive and grit and entrepreneurialism tends to generate a wave of entrepreneurs that feed off of the capital of the network or the cachet that you establish with the company prior going forward. value nothing but great to have derived from the network we established. obviously, it would be even better if it had good representation of the other gender. the idea ofu think meritocracy is problematic in silicon valley? one of the things people told me was this belief that it was a meritocracy and they were hiring based on merit when you are hiring a lot of people that you knew. meritocracy in a vacuum is not a bad idea. the people that are here

have earned their spot. it is a great motivator. the downside is if that is the only criteria, you select from people you know because if you don't know how to reach out into other groups, other communities, other flavors of engineer, for lack of a better term, you will pull from a shallow pool. i ran out of candidates because i ran out of male friends and there was no one else to recruit. emily: what was interesting to me is that you admit that there o-ey some bros, a br culture that developed. it you took action. -- ithe thing about slide think what triggered my attention to all these things was really slide. out with arted neutral point of view. the culture will shape itself, we will get bright people in. andaypal, i was too young

we were growing too quickly. i did not have enough of a worldview to understand what was being shaped. at slide, i was starting to realize it was forming itself without any guidance, and it was not what i liked. it was not what i wanted to do. -- onrinking, some of the a bad day, i might call it it wasbehaviors -- really not at all what i was comfortable with. to gently stearate, it was not going away on its own. i realized if i don't take matters very seriously and start pushing out and drawing some very bright lines about what is ok, not ok, and expected. emily: so what did you do? max: tough conversations had to be had. a couple people got fired. i made a few attempts to ban some of the happy hours. not all of it worked.

the lesson learned from slide was kind of a sad one. there are a lot of amazing people that i worked with again and again. i am working with some of them again. i did not blow up those relationships completely. but just a small amount of bad behavior created such a negative field of the whole thing. it was very hard to embrace some of the choices i didn't even make. i just let them happen. emily: now at the firm you have taken a different approach and you are more focused on hiring and promoting women. what are you doing differently that you didn't do at paypal or slide? thinghe most important that we did at the firm is we culture as a first-class citizen. there was never a moment that we didn't ask herself, what is the project, what is this process

doing to our culture? it might sound embarrassing, but is the first company where i wrote down our core values before we made our first higher. all the companies i found it in the past, the culture emerged and sometimes it was better and sometimes it was not. it would affirm that i came into the founding with the view that i have to form the culture, i have to control what i want this company to be when it grows up. i want to know is the kind of place i want to be. more: how do we get people, mostly men, to understand this problem and do something about it? what do you think needs to be done? what do ceos and investors need to do? max: there's a bunch of things. i don't know that i have an exhaustive list. but being aware of the fact that it is a talent war and the way you when it is not just by saying i'm going to go back to

the same old well and get the same people i always do. the way to win, what has worked for us, is you widen the net that you cast. tot naturally leads embracing inclusion because you find diverse candidates in divers places. emily: my conversation with max election, cofounder of paypal and ceo of a firm. spacex launches the most powerful rocket in the world. that story is ahead. if you have a bloomberg terminal, watch us online and click on your charts, graphics, and interact with us directly. just click tv on your terminal and contact us on twitter. check it out. the first 24 hour global news network streaming live on twitter. this is bloomberg. ♪

emily: spacex has officially launched the world's most powerful rocket, lifting off in florida to embark on its first test flight. it was carrying a red tesla roadster past mars. spacex didhe launch, something never before seen in space history, relenting multiple rocket cores back to earth. to of the three boosters came back and landed upright at cape canaveral. the boosters landed at the same time, side-by-side. the is a major milestone in company's quest to grow the customer base and fund the vision on making life multi-planetary. black has named its first cfo in a blog post. they announced longtime employee alan shim would be the company's chief financial officer. the company brought sarah frier

on board as the first independent board member. it could be a sign of slack pointing at an ipo. some context to last week's shakeup at airbnb. cofounder and ceo privately told his been cfo lawrence chelsea that airbnb was putting off its initial public offering. reportedly been looking up investors and was eyeing a jump to chief operating officer so he protested the ipo delay. and the decision to promote above him, chelsea was out of a job. a realinvestment in estate market, google agreed to pay $2 billion from chelsea market that sits directly across the street from the tech giants new york headquarters. the seller of the property is jamestown lp, an atlanta-based real estate investment firm. snap possibleto to earnings results, topping estimates for the first time since company went public almost

a year ago. we will dig into the numbers. bloomberg tech's live streaming on twitter, weekdays 5 p.m. in new york and 2 p.m. in san francisco. this is bloomberg. ♪

alisa: you are watching bloomberg technology. let's get a check of first world news. is dismissing president trump's comments of

allowing a shutdown if democrats don't compromise on immigration. >> it speaks for itself. down --ne trump sat shutdown, nobody wants it but him. meantime, senate leaders are said to be near a budget deal on domestic spending. negotiations are taking place with the house set to vote on the stopgap spending bill to keep the government open. spending. of thecago-based owner los angeles times is expected to announce it is selling the newspaper. that is according to the washington post. as anst names the buyer alley area physician and major shareholder of the papers parent company. say tols in taiwan people are dead and more than 200 injured after a magnitude 6.4 earthquake struck the

island's east coast. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am alisa parenti, this is bloomberg. inis just after 5 p.m. here washington. we are joined with david with a look at markets. will be interesting to see if the asian market follows through with wall street. it looks like where going to get just that. the first market open in this region is new zealand, and if you look at that market forifically, what we're in for this week's session. open 4% is doing a little bit of catch up. andlook at futures in japan australia, and they open in 25 minutes or so .

whether or not it bounces back is another conversation altogether. a break in itself, and i spoke with morgan stanley, and do expect more pain ahead just because of these extreme valuations we are seeing across pockets of the market. -- quicklyfore i go before i go, there are several bits of data to get through today, and it nudges higher in the asia-pacific. more from "bloomberg technology" next. ♪ emily: this is the book technology. -- this is uber technology. bloomberg technology.

snape announced the company's first victory after they went public year ago thanks the strengths and advertising. the social media etf has a stake totaling 5% of the fund -- thanks so much for joining us. are you surprised? i am notrprised -- >> surprised, i think they are an innovative company. the socialnk as media industry as incredibly mature and dominated i a few players. that and get them to advertisers budgets, you have to be innovative and think differently. that means rest and not everybody is going to love that, but if you can successfully execute on that, people will spend money and advertise on your platform. instagramebook and are copying them and sometimes doing it better.

they obviously have many more users. >> that is going to be a challenge for snap going forward. for a are a marketer company, which one are going to choose? for spending money on advertising, you are going to a place that is bigger and have more platforms rolled into one. it is an easier hurdle. let's that is going to continue to innovate and keep challenging facebook, they have a chance. emily: what is your hunch that they could keep it up? -- oneot about one per quarter but several quarters. is usingoung market snapchat, and it is a strong demographic going forward. one of these megatrends is the spending power of millennials. they have a times the income. emily: oh, millennials.

many courts are struggling to figure them out. of the struggling parts of snap is the artificial intelligence and augmented reality. what are you expecting there? for theis the challenge entire industry and what they're looking at is data. aboutou are thing artificial intelligence, you're are only as good as your software. if you don't have the resources and data set, that is going to be challenging. if you look at social media as a whole, this is the industry that will rise with artificial intelligence. betty emily: snap doesn't have the

best track record -- and many people want to hear from them about what their ceo has to say and what division has spread how confident are you about the leadership of the company? is the challenge because he is the founder and ceo, and you have the benefit of being a visionary and looking long-term. sometimes the market doesn't appreciate that and they want to hit quarterly marks, so can he balances asian and execute -- balance that and execute. >> tencent is enormous, and the reason for that is that if you look internationally at global social media companies, they tend to be more monopolistic. andlook at russia and china japan, it is the individual social companies that dominate facebook onnd are

steroids. that is a power for position to be in and if you can part of the company like that, you can get access to data in a large consumer base. emily: are also reporting this week -- the cfo left. how optimistic are you about twitter? we are about an industry that is saturated. >> it is. be lookinggoing to at engagement rates and what is happening around the world. bringing people to twitter who were purposely using it. but it is in a different place and make a second or third player in the market and there's a question for twitter that doesn't apply to other companies like cost control and profit margins, and that is going to be a challenge for twitter going forward. it is going to be more traditional metrics that people focus on. uply: moore simply picked

with private equity -- what are ed up.aring -- it pick up, butan bet on it or maybe two years ago people thought it was a done deal with google -- so who knows, we will wait until we see the news. jake jacobs, thank you so much for stopping by. a story where are watching is if sec -- chair is seeing relating cryptocurrency is necessary. inre's a level of naivete the currency space. >> i think our main street investors look at these virtual currency trading platforms and assume they are regulated in the same way that a stock exchanges regulated, and as i said, it is far from that and we should address the issue. coming up, travis

kalanick testifying in uber versus waymo. what the place when he took the stand. this is bloomberg. ♪

emily: it is day to of the uber versus waymo trial. travis kalanick took the stand and is the most anticipated witness at this trial, which is that the last three weeks, and waymo went after him over the technology at the center of this case. the light radar technology that engineer focused on at google.

bloomberg tech reporter is in san francisco and joins us now -- i hear quite a show. what did travis have to say? >> it was interesting. sessions with anthony levandowski about what they were talking about before drivinged this self trucking company that brought down the house of alphabet on them. what they are talking about is a key part that there was notes that they were looking for intellectual property -- so that is something that is very important. this general idea that uber was for radar tong catch up with alphabet. that permeated all the testimony we have seen. google is trying to drive on behindea that uber was

-- seven years behind starting, and was desperate to catch up when it comes to laser technology. emily: did it seem that travis had been cornered or caught unaware in the testimony? now the think travis is old hack at being deposed. -- old hat. it was mostly short, one word answers. there were moments of the fun travis. one of waymo's attorneys asked him what a jazz session was an travis went on talking about how when you have a jazz ensemble going in describing that. he was fine and light in the beginning, and a waymo'sf times attorneys had to impeach him and taken to the deposition and a slight contrast to what he said on the stand and what he said before.

nothing that made him look too bad. emily: let's talk about leading up to this point, bill gurley, was on the overboard at the time told waymo lawyers in august that his failure, travis's failure to tell the board critical information crossed the line of violating fraud and fiduciary duties. had he been truthful, perhaps the acquisition of auto might not have been approved. said we didn't see this report which was the cyber forensics report that uber commissioned to learn all the dirty laundry about auto before they acquired it. we haves saying that been fully informed about what that report found, that anthony levandowski retained a bunch of files from his former employer, the board might not have approved it.

thaty went on to say wouldn't have approved it and uses the work fraud, which is a totally shocking to learn -- suithis benchmark kalanick for fraud. moment where a board member felt kalanick did not inform them of the risk of the deal. emily: how many days are we expecting kalanick to testify? >> the judge runs a tight ship, so he is telling travis to be there at 7:30 a.m. tomorrow. you will be the first witness back up tomorrow and he will be done. our valiant uber reporter, thank you so much for giving us the play-by-play. the views -- the reviews are here for that apple home pod and the reviews are mixed. it is being panned for its integration with siri, among the

gripes being unable to call an uber or left, unlike the competition. fungos must be initiated with your iphone and interaction with phoneeaker is subpar -- calls must be initiated with your iphone. atly: coming up a look entrepreneurship and who has been at the helm since the.com era. this is bloomberg. ♪

emily: and e-commerce geithner and ceo of real.com and pets.com in 1999 and recently she is the woman behind the luxury retail marketplace, the real real. which mays, she has seen it all in silicon valley and has been mechanized as a top mount

entrepreneur and has seen silicon valley aloft what it is today. joining us is the ceo of the real real, julie, great to have you here. as somebody who has seen so much in silicon valley. think haso you changed when it comes to the representation and treatment of women in technology and what hasn't changed? tact inually started in 1983, so a long time ago. a that time it felt like bureaucracy. there were other things going on that were head scratching, but it felt like, because it was a nascent industry, were pulling together and you progressed based on your work. has changed quite a bit and some things have not changed. if you look at the funding

3% --, women are stuck at has been stuck there for over a decade and never has gotten higher. that is the bad news. due tod news is that other activities, there is a light being shined on the culture, while i don't expect that much to change, at least in that culture forward is a positive thing for men and women. one of the things i examined in my book is the hypocrisy and people refer to silicon valley that they can't ignore the privilege at play for the winners and the systemic actors working against everyone else. >> i think it has a chance to

be, it is hard to make a generalization. if you look at the funding, i would say clearly not because women are getting even a little bit -- we aren't making headway. i think there are certainly companies and practices that reward people and what they do and not what gender they are or the color of their skin. in a fast-growing industry like tech and innovation and credit thinking workouts, then people have the ability to rise up faster than in something that is a slower growth company that may be seeing promotions and advancement opportunities on other things. emily: when you are looking for -- someone who has greater insight to the challenges when face, how are you hiring and what are you doing to hire and promote women and defy the average of most tech companies? >> now we have 1200 employees

and where getting picked. -- big. 70% of my work force is female, but where we fall down is that might engineering team has few women but we are adding more. part of that is because we don't get a lot of women applicants. i would say we don't look at gender when we are hiring, but by default, we are hiring more women and are mostly in fashion and luxury resale, so it doesn't attract a certain type. to be honest, we hired the best candidate. if you want to our office, we diverseen, men, a great employee population. emily: we have been focused on sexism lately and with the #meto o movement. something else you touched on his ageism, and in silicon

valley we imagine young college kids on fancy campuses which our company headquarters. how big of a problem do you think ageism is? >> it is huge. woman are a woman and a 50, i am not an advocate of looking at the obstacles, i think it is great -- i ordered your book today by the way, and i want to plug it. i did order it. emily: thank you. >> here is the story. women over 40,r and it is certainly harder if i was a black woman over the age of already, especially when you are getting started and pitching to 28-year-old guys, and if it is female focused business -- they can't relate.

they look at you and say, oh my god, you are older than my mom. it is hard, but that doesn't mean it can't be done. getets easier once you through the concept stage and you have real business results. than the playing field equals out a little bit, but it is clearly harder for women -- older women and older men. you don't see a lot of men over 50 pitching businesses in the fec office -- vc offices. emily: you know what it takes to keep a business functioning over years. what is going to make the real real standout with so many e-commerce and fashion companies trying to revolutionize the way we buy things? >> we are changing the way people think about consignment. we are a change factor -- we

have removed a lot of friction -- we can come to your house or send it in, you can face time with someone. we have taken away barriers of doing consignment. anduse we take possession we make sure the quality is good, we have also taken away barriers from buying consignment. 50% of our buyers have never bought consignment before and 50% of our consignors have never consigned before, so we are expanding the market. in many ways, we actually are different than other people where change the paradigm like airbnb. more hotel rooms then all hotel rooms together, they expanded the market, and we are expanding the market. we did athing, relationship with stella mccarthy to sell their goods, and this is going to be a normal

thing. you buy luxury goods, and because their high quality, you can sign it. having the first big luxury designer as a partner is going to be -- actually help pave that way. we are excited. emily: thank you so much for sharing your experiences with us. we will be watching the real real going forward. that does it for this addition of bloomberg technology -- edition of bloomberg technology. my book is in stores today, and on wednesday's show will be hearing from facebook coo. ♪

yvonne: i'm yvonne man, welcome to "daybreak: asia". the top stories this wednesday, looking at the markets, you're seen the market meltdown is a a bit, u.s. stocks recover with their best day since 2016. the dow fell and saw its biggest gain in two years. --wasn't all clear sailing before ending with a late session rally. from bloomberg headquarters, i am betty liu in new york and it is just after 6 p.m. on