the president made his comments today in ohio. president trump: that's going to level the playing field on steel and cars and trucks coming into this country. [applause] and i may hold it up till after a deal is made with north korea. mark c.: russian foreign minister sergey lavrov says moscow will expel 60 diplomats and close the u.s. consulate in st. petersburg. russia also said the u.k. is in violation of international law for refusing to provide access to sergei srkripal and his daughter after they were poisoned. david show can is blaming his sudden removal from the trump administration -- david shulkin is blaming his sudden removal from the trump administration on --

"it should not be this hard to serve your country," he wrote. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. "bloomberg technology" is next. ♪ emily: i'm emily chang. and this is "bloomberg stacks -- technology." we discussed how big companies fared in the first quarter of 2018. political risk -- taking a bite out of amazon. president trump suggests amazon should pay more taxes. will the white house take action? gopro is shipping its business into licensing technology. we will hear from ceo nick woodman in an exclusive interview. de, stocksour le

surged dramatically in the session with tech shares leading the way. it was another roller coaster session from u.s. equities -- for u.s. equities. the shortened trading week for u.s. stocks has come to a close after wild swings in the market in the last few sessions. mike reagan joins us in new york to wrap it all up. so, mike, what were the highlights -- the highs and the lows? mike: tech investors can breathe a sigh of relief today, especially for many of the sox -- stocks that have been the story stocks, the focus of attention this week. we saw, for example, amazon up 1.1%, even after another tweet from president trump this morning, calling into question what exactly he wants to do about amazon. facebook up 4.5%. nvidia up about 4.5%. these were the stocks that had

people nervous earlier in the week. as you mentioned, for the start of the year, tech is still the standout. the s&p 50000 up, technology index of about 3% for the quarter, even as the overall s&p 500 was down 1.2% for the quarter, the first quarterly drop for the s&p 500 since 2015. some eye-popping gains for the quarter. netflix up 54%. amazon up. nvidia up. it's a great quarterly story for the tech sector specifically, even after a pretty nailbiting week for the group. emily: netflix and amazon defying the odds. i have an interesting chart here which shows if you take out netflix,f you take out consumer and discretionary spending is actually down in the first quarter. what do you make of this?

mike: absolutely. amazon -- we always consider it as a tech stock, but as far as the industry classifications of the big indices, it is considered a consumer stock in the retail category as well. a giant weight in those indexes. these are market cat waited indexes -- market-cap weighted indexes. consumerkes the discretionary look good when most of the rest of the group is struggling a little bit. emily: facebook turning a corner in the middle of the cambridge analytica data controversy, that still seems to be unfolding. has it hit bottom, or could there be more bad news to come, especially with mark zuckerberg potentially testifying in washington? mike: it's a very difficult question to answer, particularly because this is a very unusual week, like we mentioned. it's the end of the month, the end of the quarter. rebalancings are

portfolios because of that. also, the holiday-shortened week . volume was good in the stock market. it was average to above average. for the type of rice swings we've seen -- price swings we've seen, it's unusual to not see a huge increase in volume as well. facebook had some news out today, talking about further efforts to fight fake news and fake accounts and foreign influence on the election, so that very well could have bolstered sentiment in the company. i think the big question for facebook is, investors can't really yet gauge how much damage has been done to their user base from this scandal and from the movementacebook semi- that's going on. it's hard to tell right now, until the company reports earnings in may, if there was any damage from that and how big it was. obviously, facebook is still a growth story, as far as the

official analyst estimates. whether or not that will change at all because of this scandal, it's very difficult to tell right now, and i think that's part of the reason why we are seeing such military -- volatility in the stock. emily: editor mike reagan, thank you so much for breaking it all down. we have been watching amazon -- the stock sinking 6% over the course of the week, sparked by a report saying the president wants to impose more regulation on the company. then came president trump's tweet, "i have stated my concerns with amazon long before the election. they use our postal system as their delivery boy, causing tremendous loss to the u.s., and are putting many thousands of retailers out of business." trump has been lobbing criticism at amazon throughout his presidency. relationship the tween the tech giant and the administration -- relationship

between the tech giant and the administration, tom giles and sahil kapur. what's been the reaction in washington to this, and what could the president actually do here? >> a pretty muted reaction overall from lawmakers. congress is on recess at the moment, so members of congress don't react, unless something is really -- blows up and captures the attention of people back home, which this doesn't seem to have. the white house poured a little bit of cold water on this earlier today by telling reporters that no new actions are under consideration with regard to amazon, after the president's tweets. it's entirely possible the president is more venting his frustrations than necessarily shifting -- signaling a policy shift. it would mean more taxation, which his party strongly opposes. they passed the tax bill a few months ago that the president wanted to --

there is not much of an appetite to do something about that. it should be noted the president vented publicly on twitter about what he called the amazon "washi ngton post," that's a key political context to keep in mind. is owned bypost" the same owner. emily: easy to forget that jeff bezos actually -- also owns "the washington post." amazon does collect taxes on products it sells in 45 states. there are different rules for third-party vendors. it does get a little complicated. how strong is president trump's argument here? >> he can keep hammering away at this. he can put pressure on states to think about this, to change their rules. so, he does have the power of the bully pulpit to jawbone, to cajole, to encourage states to do this. you could see a scenario where

the states come out and say, ok, amazon, it is incumbent on you to charge tax on behalf of the third-party merchants. that's about half of amazon's volume, so it's a lot of the merchandise they sell over their platform. amazon iser hand, already charging taxes and that really hasn't put a big dent in their growth trajectory so far. emily: there's also the question of whether "the hill -- the hill and amazon could strike some sort of sweetheart deal with the postal service. some would argue amazon has kept the postal service afloat, despite what president trump had to say. >> the postal service is doing its job there, and there is no sort of exploitation. it's been argued that amazon is doing that. we have to wait to see what the white house suggests there, whether there is something they want to put on the table to make changes in that. at this point, nobody really knows. this seems to be coming from --

these are direct thoughts from the president of the united states, without necessarily a policy backbone to them or allies on board with whatever it is that he ultimately wants to do. at this point, it's just a conversation. people take notice when the president of the united states says something. emily: whether it is apple or amazon or google or microsoft or facebook, tom, which, facebook has been in the spotlight the last few days, could more regulation becoming for tech? could the halo effect around technology be over? answer your first question, the answer is absolutely yes. you could see some form of regulation. i don't see it happening as quickly from congress as, say, for example, an agency like the ftc, federal trade commission. withould see them come out some kind of rules around social media, around disclosures, around political advertising. the sense we get from everyone we talked to is that, even if

they come out with something really meaty, it would come out -- take a long time to put into place and it would affect margins -- profit just around the margins. this is not something that's going to strike at the core of these companies' businesses. trump had a chance to kill the whole deal, which would have been a major strategic blow to amazon's a vision -- amazon's ambition. he didn't do that. emily: sahil, big tech isn't all just one thing. there are a lot of issues at play, whether it's the size of these companies, data privacy. could think regulation become some sort of flash point, some sort of partisan issue going into the midterm election? sahil: it's absolutely a political conversation right now. i don't know that it breaks down so cleanly along partisan lines, except for the fact that republicans tend to be the anti-regulation party and democrats are more favorable to

regulation when they see a problem that needs to be fixed. i'd be worried if i'm facebook, more than amazon. facebook has been facing enormous amounts of criticism for their handling of data privacy and security issues, ever since the 2016 election occurred and some of the stuff came out about how their platform was weaponized and manipulated. a lot of facebook's reaction has been initially dismissive, mocking, ridiculing. mark zuckerberg said its crazy to think -- it is crazy to think that the misinformation could have swayed the election. facebook has been treating this much more as a pr problem than anything else so far, and that has landed them in the crosshairs of congress. zuckerberg has suggested he would testify. i think that's where the focus will be in congress. i've heard much less of an appetite for going after amazon than facebook. emily: i haven't heard president trump complaining much about facebook. you wonder why. tom, there's one more thing i want to talk to you about.

under armour saying an unauthorized party associated data associated -- party obtained data associated with roughly 150 million myfitnesspal accounts. i know there's not a lot of new information, but what do we know and what's your take on this? tom: 150 million people -- that's a lot of people. the information they got -- we understand its n.l. addresses -- it's email addresses, certain passcodes. i'm not sure how much they got and how they were able to use it. we know they didn't get credit card information. they didn't get sensitive financial data that we really are worried about. it is disconcerting that this is a tool that we use kind of for health tracking. you don't like the idea that somebody could sort of hack into something that has my heart rate and other personal information like that. we don't have any evidence that that kind of information was stolen, but this device -- it is

something that people carry around with them everywhere, like our phones, and it is gathering a lot of very sensitive information that i don't necessarily want to be released to the public. emily: tom giles, our tech editor, thank you so much for stopping by. we will keep following that story. coming up, gopro is licensing its technology and introducing new cameras, but can the company bounce back to the highs of 2014? we will talk to ceo nick woodman next in an exclusive interview. this is bloomberg. ♪

announcedt week gopro its first major foray into licensing its technology. gopro signed a multiyear agreement for designs and intellectual property to be used

to make camera lenses for other companies. gopro's lenses could be used in body camera for police officers -- body cameras for police officers. here to discuss, gopro ceo nick woodman, for an exclusive interview. i know you've been thinking a lot about new business models and where to go from here. how much does this open the aperture for you? how much new business could this particular licensing deal lead to? nick: we think, over time, it could be a pretty exciting opportunity for us. they wereething that very interested in because gopro's brand really speaks to image quality and we have a lot of ip at gopro around our lens design, coupling with sensors, that can enable much better image quality in many devices today, where the camera is

something of an afterthought. for a company that is making devices that are noncompetitive with gopro, they can now license our technology and, in some instances, license our brand to make it clear to consumers that their device really does offer gopro-like image quality. emily: licensing is a high-margin business. how much impact could you see from a profit perspective this year? nick: we are not sharing any information on that. we are excited to announce new deals as they come up. i think what is really interesting to us is that our manufacturer sees a lot of opportunity to extend our brand outside of our core business on our behalf and act as a sales agent for gopro. we are excited to see what other businesses are interested in putting our brand and our technology into their products. emily: you also have a new camera out today, the new hero camera, $199.

in general, how do you think this will impact the current momentum? nick: the current momentum is good. as i've stated before, in previous interviews this quarter, now that we have our gopro lineup at the right price, we are proving there is significant demand for gopro at the right price. we are a much more data-driven company today than we were even a year ago, and the data is clear that the entry-level consumer really wanted a classic hero camera from us with a touch display to make the camera easier to use. it's what people think of when they think of using a gopro. we may have confused some consumers with our previous session camera, so replacing that with this new $199 hero camera today is an obviously good move. we think it's going to resonate with entry-level consumers around the world. we think it will add to the momentum we are already seeing in our business. emily: that said, we talked

about the market cap drop. the market is expecting gopro revenue to fall 9% this year. looking at single-digit growth next year. are they missing opportunities that you are pursuing? nick: we think so. emily: what are those opportunities? nick: in just our core business, as we have shared, we expect to return gopro to profitable a -- profitability for the second half of the year. growe an opportunity to our business. we see strong sellthrough of our lineup. we expect that increase with the launch of our new $199 hero camera today. we are increasing our advertising budgets by more than 50% this year. that we needified to not only have a great lineup at great prices, but we also need to grow our brand like we did in previous years.

we are going back to marketing levels that we had during those growth years, and we believe that can restore us to growth and profitability. emily: what about emanate and/or partnerships -- m&a and/or partnerships with larger companies? nick: as we've shared -- emily: i have to ask. nick: it's a good question. it's my job as founder and ceo of gopro to look for the best opportunity to scale our business on behalf of both our customers and our investors, and if there is an opportunity to do that with a larger company through the sale of the company, the sale of gopro, we would take that seriously. emily: all right. nick woodman, ceo of gopro, great to have you back here on the show. thanks so much for stopping by. we are on ipo watch as iqiyi starts trading on the nasdaq. selina:n interview -- an interview with the company's ceo is next. this is bloomberg. ♪

emily: now to ipo news. iqiyi has completed its u.s. ipo.

it is the largest chinese video streaming service to go public. shares fell after the company raised $2.25 billion. selina wang had a chance to check -- catch up with the iqiyi ceo earlier today. [translated] we have a very mature business model and a very profitable model, so for iqiyi, we also need more capital. at the same time, iqiyi's former employees also need some incentives. at the same time, it will also help to attract more new tenants. decided to ipoi at this point in time. and then considering the capital market in china, as well as the capital market in the united u.s.s, we are seeing the capital market is more in line with the market growth strength

of our business. this is very important. in the meantime, there are two exchanges in the u.s. nasdaq.s also on the nasdaq has a great brand image, which is in line with a new technology company. that's why we hope the nasdaq, the brand, would be more in line with our iqiyi brand. we can grow together. there are many companies in the u.s. who want to build an audience in china, and you have already signed a deal with netflix. are you searching for more content deals like that in the u.s.? [translated] based on law, that is not allowed. that's why we deal with netflix to bring content to china after it's been approved by the chinese government. just like when we broadcast

pixar's content on our iqiyi. in the future, if possible, we want to duplicate this type of business model. emily: that was iqiyi's ceo with bloomberg tech's selina wang. coming up, is a tech cold war on the horizon? we will take a look at the latest salvos between the trump administration and beijing. let's take another look at market performance as we close out the first quarter of 2018. this is the fang index. still higher for the quarter, but taking a big leg lower the past few weeks. this is bloomberg. ♪ 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 c.: i'm mark crumpton, and you are watching "bloomberg technology." here is a check of "first word news." president trump says the u.s. military will end its presence in syria in the very near future. he made his comments today in ohio. president trump: we are knocking

the hell out of isis. let the other people take care of it now. very soon. there he soon, we are coming out -- there he soon, we are -- very soon, we are coming out. we will have the 100% of the caliphate taking it back quickly, quickly. but we are going to be coming out of their real soon. mark c.: the u.n. envoy to syria met with russian foreign minister sergey lavrov in moscow today to discuss the humanitarian situation. he says the talks are critical to ensuring the safety of civilians being evacuated. >> the u.n. is ready. the u.n. is prepared. we are actually preparing all our capacity in damascus and elsewhere in order to actually reach now the civilian population as much as possible. mark c.: u.s. defense secretary jim mattis welcomed john bolton, president trump's pick for

national security adviser, to the pentagon today. bolton has publicly advocated for overthrowing the north korean government. mattis reportedly favors diplomacy to rid the north of its nuclear weapons. he has -- is also said to be at odds with bolton on iran. bolton replaces h.r. mcmaster next month. the un's secretary-general is praising the recent visit to china by north korean leader kim jong-il and and the announcement -- kim jong-un and the announcement of a deal with moon jae-in. >> i'm very encouraged by the announcement of the inter-korean summit. i believe that, in this world where so many problems seem to not have a solution, there is here an opportunity for a peaceful solution to something that, a few months ago, was touted as the biggest danger we were facing. mark c.: south korea announced a rare summit at a border village on april 27 that could help global efforts to resolve the

decades long standoff over the north's nuclear program. u.k. health officials say the daughter of a former russian double agent poisoned along with her father on british soil is, quote, "improving rapidly." she had been in critical condition following the march 4 attack. authorities say her father remains in critical, but stable condition. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. in new york i'm mark crumpton. ,this is bloomberg. ♪ emily: this is "bloomberg technology." i'm emily chang. amazon stock under pressure following renewed criticism from president trump. analysts are still bullish on

amazon. there are currently 48 buys on the stock, and several analysts reiterated their optimistic calls over the last few days. speaking earlier, gene munster said there is little chance of president from taking action on amazon -- president trump taking action on amazon. gene: i think there's probably a 3% chance. it's extremely low. this is a great vehicle for trump to exercise some of his issues with jeff bezos. beyond that, it's fascinating. -- thelook at the top leading tech companies right now, six of the seven have some sort of fundamental issue, whether it is facebook with privacy, google with how they are doing data. there is some concern about apple and the iphone numbers. amazon, surprisingly, is the one that hasn't had any problems. made: president trump has it clear that he wants to punish china for violating the intellectual property rights of

american corporations. it looks like china is getting ready to respond on that front. according to a post on the state council website on thursday, china will examine the transfer of ip as it relates to national security when it comes to acquisitions by foreign investors and technology exports. to look at this looming tech cold war, potentially, i want to bring in isaac stone fish a senior fellow at the, asian society -- asia society center. a lot still remains uncertain, but now we do have a clue from that posting. what do you make of it? isaac: i think things are not looking very good for either side right now when it comes to calming trade tensions. my big worry when it comes to this is not that there will be an official reprisal from beijing that would make it more difficult for american tech companies to expand in china, where markets -- a market they have had a lot of trouble with, but there -- that there will be

some sort of grassroots effort that will make chinese people very anti-coca-cola or linkedin or airbnb, one of the few tech companies that has a presence in china. emily: interesting news on airbnb, sending a letter to their china-based hosts that they will comply with government laws, and that could mean turning over information on them to the government. it's kind of business as usual for a u.s. tech company operating in china, but what's your interpretation? isaac: on the one hand, i think we do have to give airbnb credit for getting out in front of this and saying, hey, we don't necessarily have a position on these laws, but these are the laws of china and we are going to follow them. on the other hand, i think it should give people pause that, if you are hosting airbnb -- if you are in airbnb host in china or you are going to china and want to stay in airbnb, you have to assume that the chinese

communist party and the chinese government has access to all your data. that said, i think when americans visit china, that should be the assumption as well, that none of their data is private. so, in some ways, it is a restatement of things that are already out there. emily: so, talk to us about what companies are at the biggest risk here and why. isaac: i'm worried about what might happen to facebook in this particular situation. i think facebook has tried really hard to make inroads into the chinese market for obvious reasons. and they, so far, have not had any visible public success. and i think with the increased tensions, it is certainly possible that facebook decides to make some sort of ethical compromise that will end up really biting them back down the line. i think we already know that china has very different standards about privacy than the

united states, and you don't have the same expectation of online privacy in china as you do in the united states. facebook were to go out there, i think it's certainly possible that they would need to store servers in china, which would give china and the communist party a backdoor into american data on facebook, which would be problematic. emily: all right, isaac stone fish, senior fellow at the asia society. thank you so much for stopping by. lots remaining to unfold. with its biggest corporate reshuffling in three years. myerson's exit comes amid dwindling revenue from the legendary operating system and a shift toward areas like the cloud and artificial intelligence. here to tell us more, alistair barr. it was a little confusing initially what this all meant.

demystify it for us. alistair it's mainly: all about the cloud. the cloud business has been growing a lot. -- apartown across what microsoft used to do. you had your computers at work, your servers at your company, and windows was run on those and all the software, worked together. the cloud -- there isn't really an operating system for the cloud. it's a bunch of servers and data centers run by these companies. this reorganization is a huge chunk of the cloud business on one end, then experiences and a small bit of devices in another group. basically, you are taking things like the software a lot of us have used in the past -- that will be delivered through the cloud. that's how the structure works from now on. emily: tell us a little bit myerson andn -- what his departure means.

alistair: we joked that he has had one of the toughest jobs at microsoft for years. he has been running the windows business, obviously. pc's, sales have been falling since 2011, so that's a really tough market. sales have been falling of that operating system. then also he ran the email exchange server, which is a very old way of running your email system. not many people do that now. it's run through the cloud. he really had a tough go of it. he has worked really hard. and now they are sending him off. emily: what does this signify about the next generation of microsoft? we know it has to do with the cloud. we know it has to do with ai, but are we going to see a fundamental shift in where the money comes from? alistair: certainly, the cloud is where the money is going to come from in the future. one thing to look at is office 365, which some companies use, which is the old office software that used to sit on the windows pc and now is available through

the cloud. that business is going gangbusters, and the office business is now part of the experiences and device division. the device question is still a big one for microsoft. they really failed in mobile. so isn't really taken off, think it's going to be microsoft's software being delivered through its cloud. emily: all right, alistair barr, thank you so much for demystifying. coming up, tesla is putting the pedal to the metal when it comes to the model three production. now calling on volunteers. we will discuss next. bitcoin having its worst start to a year since the cryptocurrency's first block was created in 2009. bitcoin falling below $7,500 today, and it has plunged more than 40% over the quarter. this is bloomberg. ♪

emily: facebook says it has started fact checking political photos and videos in an effort to combat election-meddling.. facebook outlined its priorities in a blog post to "protect and promote civic engagement" on its platform. now, to a bloomberg scoop, tesla is urging workers to prove the, quote, haters wrong. according to internal memos, the company has asked for volunteers to help ramp up the output for its model 3 line. bottlenecks have raised concerns

the company may need to raise more cash to mass manufacture the sedan it has spent billions of dollars on. joining us now with more, dana hull. what is the significance of these females -- emails? dana: there were two emails that bloomberg obtained. one is letting people know that there will be no model s and x production on friday. workers could take a day off with paid time off or they could volunteer to work on the model 3. we don't know how many workers are impacted, but that's kind of interesting. the second email came from the senior vp of engineering. it is just this corporate rally the troops memo, urging people to go all out, to make as many cars as possible. emily: what are they supposed to do? sleeping in sleeping bags on the production line like elon musk? dana: he said they were at a rate of 200 cars per day, and the goal was to break through 300 cars per day. expectations have fallen so low about the production ramp that

the memo makes it sound like they are farther ahead than many analysts had been anticipating. emily: in light of the recent accident of the model x, i just wonder -- the rush kind of worries me a little bit. should i be worried about that? dana: that's the big question. tesla has had a horrible week in terms of news, a lot of negative catalysts. this is the final week of production. originally they said they would make 2500 per week. emily: talk to us a little bit about the business model and the comparisons to netflix, for example. dana: well, that's interesting. i don't know enough about netflix to feel like i can make an apt comparison. for tesla, it's always growth. they are reinvestment -- reinvesting into growth. they need to get the model 3 out to have money. they are at this inflection point where the production will impact their cash flow, and if they don't get enough cars out,

they will need to raise more money sooner rather than later. emily: we are getting some headlines about spacex. they are being authorized to provide rod been satellite services. what does -- broadband satellite services. spacex's business model has been launching rockets for paying customers, but they ultimately want to create a colony on mars. that's going to be very expensive. providing internet service would be a great source of revenue for them. a launched the first two test satellites -- they launched the first two test satellites recently. emily: you want to touch on where we are with production? looking at this chart, this shows how many cars tesla produced each quarter. you do see the plateau here. does themodel 3's company hoped to make by the end of march, and where are they now? dana: they said they

wanted to make 2500 by the end of the week -- 2500 per week by the end of march. the memos sound like they are trying to get as close as possible. emily: dana hull, thanks for breaking that down. great job on that bloomberg scoop. we will be watching. coming up, streaming success. coming, andg day is its competitors are listening in. we will plug into the streaming landscape next. this is bloomberg. ♪

when it comes to the music streaming world, all eyes are on spotify with its highly anticipated direct listing next week. how is competition reacting? caroline hyde spoke with the ceo of soundcloud on how his artist-oriented platform views spotify's direct debut. >> spotify, i think, is a fantastic development ultimately for the streaming space. we are in a moment now which i think many of us may not have

envisioned even a couple years ago, where we are on path to having hundreds of millions of consumers paying for streaming music. when you see that kind of return to growth in the industry anrall, it's exciting -- exciting development for all parts of the chain, for distributors, labels, publishers, artists, consumers. for us, the tremendous growth we have seen in the space overall and the spotify listing is a fantastic development for sound cloud and all of us in the streaming industry -- for soundcloud and all of us in the streaming industry. caroline: your focus has been about the artist, in particular. -- spotify is getting more into that. is that a concern for you? already --dcloud has always been focused on the creator first. our mission begins with the creator. we are the platform where they come to share their creation with the world.

we are coming at it from a very different angle. for us, the focus is on those creators and we have always been the leader in that space. with all the things that spotify has done well, the metrics and the usage that we see on our creator side is quite a bit larger than anything we've seen is closed from them to date. we are going to remain focused on being a platform where creators come first to upload and share. it's also the reason that listeners love soundcloud and it's a different experience for them, because it's also about being first. it's about discovering things when creators are first uploading, when they are for sharing with the world. that exciting connection between creators and listeners is what makes soundcloud so distinct and unique in the space. caroline: if you look at it like a food chain, you are sort of at the start of the food chain and you feed up to spotify. can you coexist in the competitive landscape? kerry: we can absolutely coexist. the soundcloud business is built around two sides of the marketplace. with the creators, we are the

industry leader in terms of tools for creators to publish and share their work with the world. we have hundreds of thousands of paying creators. that's an excellent business for us. it's very different than the consumer straining business. it's it's inscription software -- consumer streaming business. it's a subscription software. we are the clear leader here. because of that commitment to creators, we get a very unique catalog of content. soundcloud has over 175 million tracks in our catalog. it's a multiple the size of the catalogs being distributed by mass streamers. that's why consumers choose to come to us, so we have a differentiated focus on creators. we have a differentiated business around those creators, which gives us a differentiated catalog and a differentiated experience for consumers. we are playing in a very different way than any of the mass streamers. we view our ability absolutely able to coexist alongside the growth of those larger players. caroline: how big can you become? what about monetization?

that's been the missing link when it comes to soundcloud. kerry: i've been with the company just about seven months now. we ended 2017 really a head of our plans in almost -- really ahead of our plans in almost all dimensions. we ended 2017 with over $100 million in revenue, and we are very pleased with the way we see that growing, both on the creator side as well as on the listener side. already, our business, while smaller than others, it is a meaningful business. we are very excited about our prospects to continue to grow that, so we absolutely view a very significant value for soundcloud to be compared with other large streaming services. emily: soundcloud ceo kerry trainor there. sticking with music streaming, i want to bring back caroline hyde in london to tell us more about next week's spotify direct listening -- listing. what are the bullish signs?

caroline: bullish signs, let's start with the company itself. the numbers look -- they are seen paying customers climbing about 1/3 this year. they say revenue will climb about 30% this year. it is being picked up by a number of analysts, three of which have a buy on the stock before it is even listed. they say it is the biggest player in the field. rbc puts a size to the addressable market of $125 billion. what's interesting is the difference in price target, because there is some $60 of gap there. sayingying $120, some $160. this is not an ipo. this is existing shareholders being able to sell. we will have a lot of instability, a lot of price fluctuation, we estimate, next

week. so, notably, we have to factor in what the markets been doing. i can only imagine what the ceo has been doing while looking at the market. 1562, down goes netflix in the white line, which is what they have been trying to associate their business model with. down goes pandora in the blue line, off by more than 5%. down goes the s&p 500, not off nearly so much as these key pairs. it will be -- emily: caroline, spotify's business model is very unique. we had pandora on the show yesterday. they make money most in an entirely different way -- almost in an entirely different way. how are investors thinking about spotify's business? caroline: spotify would rather you think of netflix. it wants you to look at the valuation that netflix has, $120

billion. notably, netflix, the more subscribers you get, the more money you make. but with royalties built into spotify, the more subscribers they get, they have to pay more to the likes of sony and universal, so the math doesn't always work out that way. we will have to see how they digest the business model going forward. emily: bloomberg's caroline hyde. thanks so much. we will cover this on next week. that does it for this edition of "bloomberg technology." we are live streaming on twitter. check us out, @technology. that's all for now. this is bloomberg. ♪ retail.

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