very disappointed in the $1.3 trillion, nobody is more disappointed than me because the number is so large, start coming down, we had no choice but to fund our military. the president added he is not happy with the measure because it does not include protections for dreamer immigrants and does not provide enough money for his portable. the u.s. says it looks forward to working with the new peruvian president sworn in today after peru's congress voted to accept the resignation of the former president. the state department praised peru for what it called a constitutional transfer of power. a 16-year-old girl shot this week at a maryland high school is dead. the st. mary's county sheriff's office said today she died last night after being taken off life support. students from marjory stoneman douglas high school and many others around the country are in washington ahea of saturday's

march for our livesd. half a million people are excited at the rally in support of gun control. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. ♪ emily: i'm emily chang and this is "bloomberg technology." coming up, dropbox officially joins the big leagues with the biggest tech ipo of the year. how the file server may have set the tone for tech listings on its first day of trading. as facebook's ongoing data scandal. zuckerberg has spoken, but his apology did not satisfy critics. will year from someone who know -- we will hear from some one knows what it is like to run a social network.

bit tech goes to beijing for the annual china development forum as the world's two largest economies brace for a trade war. first to our lead. the market wrap continues. a bad week for stocks ending with a bearish reversal on the day. the worst weekly decline since january 2016. abigail doolittle is in new york. talk to us about where it started and where we ended up today. in terms of the entire week, all about facebook, but before i go back to facebook, we have been talking recently about what a day and what a week. the market is down in a big way on the day today. surprisingly since the morning, we had stocks modestly higher. as the day progressed, big move to the downside. that has led to the worst weekly drop for the three major averages since january of 2016. that is important because that tells us that this week was more bearish than either of those two big down weeks back in february

so the sellers are taking control of the near-term. but to the linchpin to this week's selling, i would have to say it is facebook. if we look at the bloomberg, a six-day chart of the bloomberg. the stock absolutely fell off a cliff on monday. that was over the data crisis you were just talking about. investors not knowing how to -- what to make of it but reacting the richly in terms of the overhang at a possibility of fines or regulation that came out as the week went on, possible ftc probe. that set the tone on the week. we have the possibility of a trade war, so that is not helping. all of this really dragging on big tech.we had some of the big internet names trade sharply lower, including alphabet, netflix, and amazon on the week. sympathy to what is going on with facebook, but the bedrock on the week surprising to me is apple down more than 7% on the

week, it's worst week since april 2016. the reason that stands out to my knowledge, there is not a specific on the mental reason, so that tells you investors are selling the stock. recently at an all-time high ahead of the earnings season. that may raise concerns about smartphone sales. when you see this kind of selling for no reason, that tells you just how jittery investors are. of course, we see the big tech names down. oracle i would like to point out one of the worst drugs for the tech sector down 14%. its worst week since 2008 on a disappointing god especially around the cloud -- guide, especially around the cloud. emily: how does a potential trade war fit into this given everything going on with china? abigail: it certainly gives a bearish backdrop. a not friendly tone between china and the u.s. and what happens with technology but specific to smartpros, very interesting.

a number of the asian smartphone components dropped. the companies, the stocks drop in a big way on fears that apple would drop those companies for some of the components. in the u.s. session, we saw the reverse with some of the u.s. suppliers dropping in a big way, including skywards, broadcom, some of those names down sharply after the fears that some of the chinese phone makers may not use them. about 10% of revenue. it was also a bad day for chip stocks overall. macron trading sharply lower. philadelphia semiconductor index having its worst week since 2016. lots of bearish action. it will be very interesting to see what next week brings.you know i love the technicals . a lot of charts are broken which may suggest more selling at the head. emily: all right, abigail in new york, thank you so much for wrapping it up.

the biggest tech ipo of the year, so far, happened today. dot plots jumped on his first day of trading. drew house and spoke to bloomberg about the significance of the day and the company's rapid growth. >> we were going pretty fast. the fastest company in history to a $1 billion run rate, and we look at the $11 million number and in his big, but we are addressing a need that every team in every company in the world has. a lot more people that need dropbox. says afterext guest today's debut, dropbox will have no problem reaching the $10 billion valuation. our guest joins us now. they closed at $11 billion valuation today so they surpassed what they had been seeking on the private market. there was question about whether they would. investors are optimistic. what is your take? companyu build a solid

with good fundamentals and a lot of good cash flow, the market is going to reward you.the street will reward you. dropbox has proven that today. emily: so the question is, how many companies can really compete for the cloud? you have amazon, microsoft, google, box, dropbox. they are all fighting for different pieces of it. but do you think smaller companies like dropbox need to be worried? vineet: my opinion is everyone is playing for different parts of the cloud pie. you talked about amazon and google. they are more on the core infrastructure cycle unless the applications i. got box is focused -- application side. dropbox is focused on something else. is not a zero-sum game.the market is so large that you can create multibillion-dollar entities here. if you go back, it was not historical sap. emily: this is your business.

is it helpful to be so optimistic? vineet: you have to be as an entrepreneur. but also, i think dropbox has proven today that in this market with the adoption curve, it is going from consumers to more businesses. if you look at the evaluation and the core business with consumers, whereas a company like ourselves is focused on the s&p market, the midmarket companies, which is huge in north america, even if i do not like about europe and other parts of the world. emily: what about apple? you can think about it as a bigger threat to a company like dropbox given that it is so consumer focused and that is dropbox's bread-and-butter. vineet: it is an interesting thought. dark horse. race as a percentage of americans has when apple device. most of them has a built-in cloud drive. if apple were to get serious about going o beyond the

simple personality of the cloud and ad more and more things of what people are looking at, it could be a substantial threat. but it remains to be seen what the core focus will be. emily: so somebody in this industry, what do you think are the biggest challenges ahead? what do you worry about when it comes to your own? this is given how much everybody is fighting for this territory even though it is expanding. vineet: the big driver for our space and dropbox success is that other company's are proving that the cloud reduces the friction. ease-of-use, but there is a bigger focus on privacy and data security. in my opinion, it is not just relevant for social brands that consumer brands of social networks. an ultimate focus on data the bigand security are challenging things that companies will struggle for if they do not have the focus. emily: privacy has been a top

topic this week, especially given what is going on with facebook. did you think that our data is at risk, our privacy is at risk even when companies promised it is not? vineet: it is a hard question to answer in a binary way. it has on what target markets are serving and what exactly they are doing with the data. in our case, for example, protecting that, making sure privacy, compliance issues are all addressed is such bread-and-butter that if you create and a tremor, you will take a significant hit as a company. it starts with what target market you are trying to sell. emily: thank you so much for joining us. vineet: thank you. emily: coming up, dick costolo

weighs in on the facebook distressed. if you love bloomberg news, check us out on the radio. this is bloomberg. ♪

status updateling for facebook via a tweet from elon musk. he said he is deleting the facebook pages of spacex and tesla. spacex and tesla's facebook pages are now no longer available.

and as the fallout continues in the wake of the exploitation of data on millions of facebook users, i caught up with dick costolo and asked him to weigh in on the controversy. dick: one of the concerns or questions i have is the impact it will have on the way i think people think about apis and access to data in the future. obviously, facebook had built out this platform approach that enabled third parties to access this data and use them to and engage with people on facebook and turned that off some years ago now and are now sort of seeing the consequences of some of that. i do think it will have an impact on the way technologists and company founders and ceos going forward think about how that it will be used, how they can audit how that data is disposed of, etc. emily: how do use data in a way different than twitter handles data? as i understand it, twitter is more protective of user data.

twitter has its own issues, which we can talk about , what do you think facebook has been too permissive and to carelesso about user data? be --you know, just to not to be an apologist for what has been going on, but this platform was public. the apis were public. people knew what those apis were capable of. they have been long disabled. the big difference between twitter and facebook is that on facebook, there is lots and lots of personally identifiable information and demographic information. that turns out to be particularly helpful to advertisers. advertisers want to be able to demographically target, micro target, and twitter does not have that information. to just go back a few years, when i was running twitter, frequently that was thought of as a disadvantage. twitter does not know anything or enough about its users so i

cannot target my advertisements as accurately as i can on facebook. so there are two sides to this going. in some instances, it is a real benefit to the platform of business and in other areas like, we are seeing now, it comes back hard on you. emily: we are seeing former facebooker increasinglys speak out against facebook. this is a guy that sold his company to facebook for $20 billion. #deletefaceboo will take off or have a significant impact on usersk's desirability to use the platform? dick: i am sure these people will be returning all of their ill-gotten gains any moment now. is -- thesek this things happen. they come up every now and then when there is a big news event around these platforms. facebook is such an important part of a lot of people's lives.

it may be the case that a certain number of people here in silicon valley inside the bubble, if you will, will delete it. i don't think it will be a big movement. it is too much. it is too important a part of too many people's lives around the world. emily: is disingenuous for people who made a lot of money on facebook -- dick: i already made a joke about that. come on. that was my comment. it is easier certainly when you are not a part of the company anymore to sort of sit back and lob in molotov cocktails. there are people working extremely hard inside these companies to do the right thing. i know someone who leads product at twitter has been talking a lot about the issues along with jack the issues that twitter is try to deal with. there are people insight as companies try to do the right thing. i tend to not love it when people consent on the sidelines and sort of lob in criticisms.

emily: mark zuckerberg said in an interview that perhaps tech should be regulated. it is not a question of if, but how. do you think tech should be regulated? if so, how? dick: i think it probably will end up being regulations. it seems like that tide is headed in our direction. it is incoming, if you will. the challenge particularly around areas of technology is it areas ande frequently concepts and details that are difficult to understand, which makes them very susceptible to lobbying. there are lobbyists on all sides of these equations. finally, i worry that in most cases, the regulations start to fight the last war. in the past, this happened so let's prevent that from happening again. the technologies are changing so quickly, they don't anticipate the next issue or challenge that

may be coming up. workcause these companies and maybe are not addressing what the companies have to deal with and was society has to deal with next. emily: on that note, he is sure that russian meddling is happening. if it is happening on facebook, it is probably happening on facebook as well. can facebook and twitter stay ahead of this now that they know it happens? can they really keep up? dick: it is an arms race like spam was in the past and lik e phishing. the difference is now there are state actors. not just a few people trying to hack into an account. when you have state actors who have enormous amount of resources, it will be a real battle keeping up with them. they will never attack the same way they attack in the past. they will try new and different tactics. keeping up with them will be a challenge for these platforms. emily: just some of my conversation with dick costolo.

you can catch the rest online. coming up from a trade war with china can have major ramifications for u.s. tax. apple, microsoft, and alphabet's top execs are hidden to beijing now for the china development forum. we will discuss. this is bloomberg. ♪

as a possible trade war with china looms, some of america's top tech leaders are heading to china to do more business in the world's most populous nation. but are all attending the annual china development for him this weekend. cook's cochairing the event, and apple has the most at stake in china. from u.s. companies, that is. here to tell us why is mark. what do you make of this big pilgrimage to china? >> it is actually incredible. the timing. they have had issues in china

before, apple that is. google is banned from many parts of greater china in terms of the web services. ibm, issues. qualcomm, of course. china needs to sign off on that deal. there are some holes there. these are companies that have more at stake. apple seriously prioritized china on apple's map and there was huge success. of the roller coaster is going downwards now in china sales. they have fallen for many consecutive quarters in china so they have a lot at stake there. at the same time, they have the icloud issue over the past few weeks or so. a new law in china were companies have to store their customers's data on statement servers in mainland china versus servers in europe or the united states. basically now, ironically, apple users or china users of apple in china will have to serve their

data locally. emily: interesting timing giving the u.s. is putting on china and the chinese response. do we know more about how those will affect companies like apple? mark: of course, that is the biggest thing. thank you for throwing that out there for me. we don't know yet. trump announces these things and says he will veto them and then does not veto them and says there will be an announcement. we do not know the details yet, but we have broken down the what if's. one possibility is that china -- trump would consider apple and america company and would not tax them on things from china to the u.s.. he may do that in retaliation for tim cook not moving iphone manufacturing to the u.s. as trump has been asking for many years. if he goes in that direction, you have to look at the steel and other metals under this trump law. we spoke to gene munster, a well-known apple analysts.

he said if it goes that far, the impact will be little and will not hurt apple's bottom line. emily: speaking of, next week, apple will be having a big event focused on education in chicago. i know you have been trying to find out as much as possible. we talked about it a little earlier this week. what do we know? mark: what we reported this morning is the focus will be around a new ipad, a low-cost cheaper model focused to education. apple will have new education software for students and teachers alike. google has really made inroads in the education market with their chrome bugs as well as the service called google classroom. it is a very integrated service work is could you their homework, teachers give tests come integrated. apple has 17% of the market. the ipad will boost that 17% while the software that apple is working on will be a more

integrated approach. right now, they have so many different education apps. they have playgrounds, the classroom app for teachers, a framework they are working on for developers, and itunes for classwork and watching videos of different test lessons. now they will integrate that all. emily: i know you will be over all of that for us we were -- us. we will cover that next week. coming up, it started with a $1.2 million investment, drop more than a decade ago. how much of that is -- is that worth today? we will talk to brian next.this is bloomberg . ♪ mom, dad, can we talk?

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seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. >> mark crumpton. here is a check of first word news. president trump has tweeted that the justice department will issue a rule banning bump stocks, devices that allow semi automatic rifles to mimic

automatic weapons. the justice department announced criminal charges and sanctions against iranians accused in a government-sponsored hacking scheme. >> list alleges they worked on behalf of the arena and government -- iranian government, specifically the guard corps. they hacked the computer systems of 120 universities, 320 universities and in 22 countries. 144 the university victims are american universities. mark: justice officials added that the hackers were affiliated with iranian company, which park executors -- which prosecutors have operated since 2013 with the iranian government to still scientific research from other company -- other countries. islamic state claiming responsibility for the situation in france were a man to cost killed a supermarket and

three of his credit the french president praised a police officer who was seriously wounded, after offering himself up in a hostage swap. the european council president says that eu nations will take steps against moscow following the nerve agent attack in the u.k. >> in these difficult circumstances, i am personally especially pleased that the tough brexit negotiations, the european union has demonstrated unanimous cooperation in the face of this attack. eu says it is likely that russia was behind the attack on a former russian spy and his daughter. both remain hospitalized in critical condition. in the meantime, tusk confirmed that the group will call on their ambassador in russia.

the world body will not provide any electoral assistance for venezuela's upcoming presidential vote, being announced that they are rigged and the main opposition coalition is boycotting the election. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. ♪ ♪ is to hash -- you are watching "bloomberg technology."

dropbox story in its first day of trading and it is paying handsomely to sequoia capital. the investment made over a decade ago is a stake worth roughly $2 billion today. alex caught up with bryan schreier, partner at sequoia capital. take a listen. bryan: we first met when dropbox was just an idea and two tremendous founders with a product vision and fast-forward to today you have a billion-dollar company built by some of the finest people you could ever hope to work with, so it has been great for us to be involved. alex: you have seen the lifecycle in the past 10 years, they took time where they cut costs, where they kind of got into the shape that the public market investors were excited to see from a cost structure perspective. what takeaways to you share with your other portfolio companies with what dropbox and did in redefining its business strategy?

bryan: it has been a decade in the making. one thing about dropbox is they are protected, and they have an incredible business model and a wonderful product, but they built something of tremendous scale, so it has over 400 billion pieces of content and that has taken a lot of financial investment over the years. that investment has paid off in a company that is cash flow positive. alex: not all companies exit ipo's, we get maybe 20 or 30 a year here in the u.s. and we have a lot more private startups that have valuations in the billions, so what is it about dropbox that you think made a company that could get public? bryan: it combines the best of both worlds, what i mean is the strength of a consumer company with a scale, and they also have this recurring business model of a software company. there is not another business

like it. it waser elements are both a great business of from the this -- the beginning, which is a hard thing to do. if you are going to partner with one or two companies, as we do, it is a once a decade thing to find two people like this with - who can pay her business and product. alex: what are you telling others to take away from this narrative? bryan: it is a model of a long-term orientation to building a business, so dropbox announced a year ago that they are the fastest company, and the vasso to achieve $1 billion in revenue, but it has taken time and that means making the right decisions along the way. i think number one is building a world-class team. and for dropbox to world-class steam means people who are the best in the world at their jobs, but it also means finding people of tremendous character. so the character of dropbox

andts with the first two, then into today, that is why it has been a privilege to work with them. alex: when i think back to square being listed, there was a lot of kerfuffle about the fact it was going public with evaluation well under the private valuation, so talking to people in the past two years in the silicon valley world, it seems some of that concern about valuation has been taken off the table. dropbox is trading through and above its private valuation. when you think about the valuation question, yes, it does not impact business strategy, but it does impact customer relationships and fundraising, so how have things changed in terms of how people think about the change in valuation at ipo? bryan: we have always focused investors and employees on the very long-term and we felt if we

were building a service of value for 500 million people, over 10 million paying customers, that we would whether any ups and downs in the market and i think what we have seen today is despite a week of tremendous volatility in the public stock market, a company that is built to last can punch through all of that. alex: you look at the companies when they are young, like when you got involved with the dropbox. where else are you looking? you have a nice steak, upwards of $2 billion at the ipo price and trading higher, so where is sequoia capital looking to put money? bryan: is there are a tremendous number of opportunities and in the last couple years we have invested in anything from rockets to data science to social media, but the honest answer and the secret of venture capital is we're looking for the next founders that make the difference, and they are so hard to find. alex: when you look for that

female para founders, how has the investment basis change to given the kind of real impacts that some of the strong female voices have had, talking about sexism in silicon valley? bryan: it is changing and i think for the better. we have a long way to go. actually, the last two founders i backed are females, so i'm glad you asked. i think things are getting better. but we do have a long way to go. alex: when you think about exit strategy for your portfolio companies, where are your thoughts? we have seen a little bit of a stocks, but it has been a longtime bull market generally. are things getting frothy, is it the time to push companies to exit? i do you think about that exit strategy? bryan: our strategy is to be the ideal partner to the ipo partner. and so we do not actually

optimize for exits. that is one of the ways we think differently from other investors. we believe the exits will come if you are building enduring value, because that is what is attractive the public market investors. emily: that was bryan schreier with our very own alex branca. believe it or not, there are non-dropbox news in ipo's. in china, there is a committee seeking a $1.6 billion valuation, rivaling the size of uber. currentlyry giant is the fourth most valuable start up in the world with evaluation of $30 billion. coming up, selling a big cryptocurrency and it is paying off to the tune of $1.7 billion. we will explain, next. this is bloomberg. ♪

emily: qualcomm investors reelected the chipmaker and had a shareholder meeting that would've been different had the largest acquisition had not been stopped. 10 directors including the ceo reelected unopposed. the chipmaker is still battling with apple over licensing after the failed bid from broadcom. telegram is on a roll, it is hitting to a generally in users and is on track to raise another $850 million via its initial coin offering. what is the planet for its self

exiled russian founder? caroline hyde has more from london. walk us through the size of telegram relative to other messaging apps like facebook messenger and the case, because there is a specific reason people want to use telegram. caroline: they have always boasted encryption, before the rest of them got there, they were born in 2013 and they were using encryption before what's app. 200 million sound like a lot of users, but it have to be scaled seven times to be this has of what's app, or six times to get the facebook messenger, five times to get where we chat is. it has a lot of growth to do. and it has plans to diversify into actually building its own blockchain protocol, a network, and it wants to rival the likes of bitcoin.

it will offer payments and it will have a digital wallets. it will offer storage like dropbox. it will have ways in which you can purchase things via the protocol with online storage if you want to be an entrepreneur. you can have a virtual storefront. so they have to have a cryptocurrenty. and it will be done by 2019. many are skeptical. emily: so they have already had a record-breaking ico, but now they want more money. how do they do that? caroline: $850 million is not enough, it was raised in a pre-sale. and interestingly the main players in ico's, the likes of union square ventures and horowitz are not in it. they usually know their stuff. but they did a presale and now

they are doing another presale, this time to big players in terms of wealthy individuals, going for investors, $850 million and then they go to the public market to raise the other $850 million. they will raise up a $2.2 billion, to grow out the blockchain protocol they want to build over all, but there is skepticism. whether they can actually drive for the efficiencies that they want. they want a more efficient protocol then bitcoin, they want to be able to get about one million transactions every second, but at the moment you are going to get 7-15 per second on the likes of a theory him and it has really outlined how they will achieve it and certainly they are going for a record-breaking numbers. already, they have broken records. emily: in the meantime, we've an update on the facebook, cambridge analytica story, the

company undergoing a third-party audit. tell us more about the action that is being taken. caroline: yeah, bring it closer to home, because remember cambridge analytica is a u.k. based company and therefore the main watchdog in the u.k. has been driving on behalf of this european union, the investigation into cambridge analytica, but it has been stunted because it cannot get a warrant from a judge. they finally have it, as we understand. this is the commission office in the u k, the main privacy watchdog and of a of finally gotten the all clear to go into the office is, the computers of cambridge analytica to get to whether they have the data of 50 million u.s. citizens that they managed to somehow take from facebook. all of it is alleged. cambridge analytica has said they deleted that in 2015, but

many people do not believe that and they feel like the data is on the computers and that is with the regulator will find out. course, wasknow of a suspended this week after he was caught on videotape bragging about the dodgy campaign tactics they used at cambridge analytica, so he has been suspended and now we will see how they deal with an independent third-party audit, on provinge taking that they do not have that data. emily: thank you. with each passing day facebook is having to answer about its role in and obligation to society. we will hear from one of its earliest employees and cofounders, next. this is bloomberg. ♪

to our coverage of the facebook fallout, the ceo mark zuckerberg broke his silence on the access of cambridge analytica to user data, outlining steps the company is taking to make sure a leak it does not happen again. one insider is chris hughes, not only the college roommate of mark zuckerberg, but a cofounder of the social network. we spoke with him in february and asked him about facebook's responsibility and influencing politics and society. take a listen. >> it has been really clear about facebook's responsibility in the 20 16th election and has taken stock of his own responsibility to think about how facebook influences our politics and our culture, and the recent changes with the newsfeed are a reflection of that. i have no idea if it will be

enough and i cannot say whether or not facebook will be able to prevent russian meddling, i certainly hope they can and i think they have a real responsibility to do so, but the first step is understanding that that responsibility exists. caset least in facebook's there is an embrace of that and it makes me hopeful. i hope we see something similar across the board with other companies and on economic issues, which i think is just as urgent. emily: you were critical in the early days of launching the homepage that became the newsfeed and today the focus really is the newsfeed and facebook has said we will show you less news and more posts from friends and family. take me back a little bit and talk to me about launching newsfeed and what your role was and how you sort of take stock of what it has become. chris: the very first

homepage, the vast majority of people never saw it because it was a static, you had x number of messages, your profile photo, it was very bland and boring. we launched newsfeed in the fall it reallyd revolutionized the platform and made it much easier for people to stay up-to-date with what their friends and family were doing and it saved the core of the product through today. so i think newsfeed, i think as one of the billions of users, that it is best when it is engaged and when it delivers important news and information that you want. when you find out a friend got engaged, another friend had a child those life events, are important. not only does, but in addition to everything else. i think that kind of view of valuable product is what facebook folks want to get back to now, which seems to be a move

in the right direction. emily: in a way it is as if facebook is taking a moral stand. in a way that it could help the business or it could hurt the business, depending on how you evaluate what is good for the business. it is interesting territory. chris: i would not say the headlines you read in the same pieces, has been a longtime come over a decade since i worked on the product, but i think that there is a sense not just at facebook live but at twitter too, all the social platforms, that these things work best when they are meaningful. there is a difference between entertaining and meaningful, and making sure that when you spend time inside the products you are feeling, you are feeling a sense of connection, because ultimately that is what the platform was intended and what it was up -- what it was about. in the beginning it was

unimportant driving value too. emily: do the companies have a moral obligation? chris: they have an obligation to understand the role they have in society and what they are doing to impact it. if we take politics for instance, i do not know if i would call it moral, but i think they recognize an obligation to make sure that people are listening to people who disagree with them. emily: that is from her upcoming studio 1.0 interview with chris hughes. finally, virtual reality was supposed to be the next big thing, but it has not happened yet. oculus is trying to change that with their new headset, the oculus go. mark got a firsthand look. ♪ reality was supposed to be the new way to look at the world, but it has yet to take off the without hollywood told us it would. vision that isa

changing that, their plan, optimist go. it is cheaper and a different approach. sonye headsets from hdc, and even oculus's high-end range, the go is a standalone device. it does not need to be chained to a desktop. as a smartphone chip and rechargeable battery so it can be used similar to a phone or tablet. you can watch movies on the go and interact with media apps. according to the latest data, it has 20% ownership of the headset market, trailing ownership by system,laystation giving them a lot of room to grow. at the same time, it has been referred to many as a platform that will soon be supplanted by augmented reality, basically a cousin that misses the real world with a virtual world. tech pioneers like amazon and

apple are focusing on ar, not believing in vr as a long-term strategy. so oculus go might be a hit product this year and next, and it could be a short-lived success story. we will see soon. emily: that was our very own mark gurman. that does it for this edition of "bloomberg technology." we are live streaming on twitter. 5:00 p.m. in new york, 2:00 p.m. in san francisco. that is all for now. this is bloomberg. have a wonderful weekend. ♪

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