>> i'm mark crumpton, and you are watching "bloomberg technology." "the new york times reports the justice department inspector general delivered to congress friday a highly critical report of the fbi deputy director andrew mccabe, repeatedly misleading investigators. according to "the times," he was fired last month, lied about instructing aims to provide information to a reporter. in thesional democrats u.s. armed forces are calling on president trump to stop using twitter to announce national security decisions, particularly in syria. >> war is not a reality

television show, and it should not be treated as a reality television show, and certainly not by the commander-in-chief of the greatest country in the world. >> president trump calls former fbi deputy director james comey an untruthful slimeball, in response to his new book in which he compares the president to a mafia boss. the president fired comey last may. president trump has officially parted scooter libby, a former top aide to vice president cheney. he was convicted of obstruction of justice in 2007 after an investigation into the leak of the identity of cia officer valerie plane. global news, 24 hours a day, powered by over 2700 journalists and analysts in more than 120 countries. in new york, i'm mark crumpton. "bloomberg technology". is next. ♪

emilycaroline: i'm caroline hydn for emily chang. this is bloomberg. tesla takes off after ceo elon musk claims electric car company won't need to raise more money this year. plus, the bitcoin bounce. massive gains made this week by the world's most valuable cryptocurrency, and if it can be sustained. and after mark zuckerberg's double date with congress in d.c., we recap a all week for facebook, and what lies ahead. nd the u.s. treasury department released its report just a few moments ago. but to the nation's currency outlook has are made the same, but the u.s. maintains the line that no nation is a currency manipulator, but adds india to the watchlist.

we are seeing the likes of china, switzerland, in japan remaining on the watchlist as well, but notably india being added. after taking a beating in recent weeks, our top story of tesla shares, climbing in friday's session after a tweet by the ceo rebuking a report from "the economist," saying "it used to be boring but smart with a dry wit. now it is just boring." tesla will be comfortable and cash flow positive in q3 and q4, so obviously no need to raise money. reported the electric carmaker will need to raise $2.5 billion to $3 billion this year. but does wall street agree with musk? here to tell us more, david roach joins us. stocks dividew wall street analysts in between lovers and haters.

i want to dive into the bloomberg and look at gtd. this shows you how many short, how many bearish bets there are on tesla. overall float in tesla is currently shorted, phenomenal. that is the most in any u.s. stock. why the love and the hate? >> that's right. it's now the most shorted stock. for a while it was apple, now it is back to tesla. you have true believers who think elon has ambitions for wireless and autonomous cars, that he will have a great grant, and will be able to cash in. elon and people in tesla call them, think you will run out of money before he gets to that vision, and the shares will come crashing down, and somebody else, general motors or mercedes or combination of all the existing companies, will be the ones who

make the cars of tomorrow that drive themselves and run purely on electricity. and those are the two opposing views. until tesla shows they can make money and stand on their own two feet without having to raise more cash, you will have a bunch of shorts pushing the story. >> keeping a keen eye on the cash flow, particularly when he was tweeting about today, saying we will be cash flow positive in q3 and q4. many have been eyeing this figure, because there is a phenomenal amount of debt of the company. >> there is. a hassle has about $10 million in debt already and they are spending quite a bit of money on interest, to develop future models, and are burning cash. they are set to burn more than $1 billion this quarter, they burn $800 million or $900 million on average, quarter quarter. the bulls have a point, that they don't see any reason to know why tesla would stop, and many analysts, to be fair,

didn't make this number up. analysts estimated they need to raise $2 billion or more during the year. elon says they will get production of the model 3 up and bring enough cash in the door by selling the cars. cars,t by selling their stand on their own feet. they have to get the cars out, the cars have to at least be close enough to profitability, where they bring in new sources of cash flow. we will see, if they do that, if they are able to be cash flow positive. >> there's a lot of if's. it feels like the model 3 is the make or break. >> definitely. that is what a lot of people are betting on the model 3, if it is even close to being profitable in the cash flow picture, it could establish enough credibility where tesla can continue to raise money from investors.

that another question that the bears have. if the model three continues to have massive delays, if it doesn't make money, if they are burning a lot of money, they will just get tired and stop giving them money and eventually they run out. so does the model 3 bring in enough money to retain credibility with the market so they can bring in money once they do need it? elon musk has why been sleeping down at the factory, telling people -- give us an update. this hasn't been the only headwind, the model 3 issues, but also there has been, sadly, the tragic event where there was a crash that resulted in someone's death of the model x. can you give us an update on where tesla is without? there has been some antagonism with the investigation. >> there is, an that's another

reason why tesla shares are so controversial, because there's a lot of drama. elon tends to tweet, which can move shares. in this case, you have a government investigation. the driver was using autopilot. elon has gone out on twitter and blamed the driver, and was giving out information about the crash. the government didn't like that, gave him rebukes in letters and pulled company off the investigation. elon's report was that the government takes too long to investigate, so he will put information, he doesn't want to leave people in the dark. generally when companies are being investigated, whether it is the justice department or one of the safety boards, they kind of keep quiet and cooperate, they don't want to anger the government. elon doesn't take that route. you have had this tit-for-tat on twitter, and the press releases from the government. these things do weigh on shares,

because autopilot is an important piece of what tesla does, and if there are problems with it and if the government is investigating it, that could show that they will have to already have they questions about self driving cars because of the uber accident that happens not too long ago. >> questions about autonomous vehicles, questions about tesla going forward. when will questions be answered? when can we get some demonstration that they are hitting targets? we have earnings coming out on the second of may. is that the key date? >> you'll probably get an update with production and how quickly it is ramping up. what you on said is that, second-quarter, you see production accelerating. they may give updates throughout the quarter.if things are looking good , elon has been known to do that. if he has good news, just throw it out. but generally speaking, second-quarter earnings, they might give a big production update, sales update.

you might really start to see if they are hitting bigger numbers that he has been hinting at and promising in recent weeks. >> we will see whether he tweets anything in the interim. david welch, thank you very much for joining us. meanwhile, asia's number two software services firm is also giving a busy outlook. they are forecasting a 6% to 8% rise in sales this year, reflecting growth from a move into digital services. net income rose for the march quarter, generally in line with estimates. coming up, we recap bitcoin. what the cryptocurrency collapse means. we will debate. and if you like bloomberg news, check us out on the radio. have a listen on the bloomberg radio app, bloomberg.com, and on sirius xm. this is bloomberg. ♪

moscow a telecommunication company will block telegrams of russia after they refused to grant government access to users encrypted messages. the move is a blow to the company that just weeks after it raised $1.7 billion from investors via its own initial coin offering. meanwhile, bitcoin investors are seeing light in the bear market. while it remains to be seen whether it is the end of this year's slump, the 23% gain over the last five days as many cheering. it is heading for its biggest weekly advance just before the

month. other large cryptocurrencies are all up at least 6% friday. joining us for more is the coin desk director of research. great to have you. talk to us about the bounce. is it all about the tax deadline? is that issue easing? >> that had a lot to do with it. i think that in conjunction with the shorts that have become overconfident around that tax state, they are starting to pile up. those were all cleared just a few days ago when that happened, when it spiked one day. >> i want to talk about the spike, the volatility. at one point yesterday it was claimed that bitcoin jumped more than $1000 in 30 minutes. this is an asset that has $130 billion in market cap. how do we see such volatility? is in the short squeezes that

make the sudden moves? >> the short squeeze is what happened the other day. it is also the super liquidity of the entire asset class. you can change your position very quickly. you can go from a cast position or u.s. dollar position on most exchanges. we see big swings because we are not used to this type of liquidity, this technology that allows you to jump in change positions in the blink of an eye. >> if it's the blink of an eye? the latency issue is there, the speeds of transacting that are promised hasn't been as speedy, but there are scaling issues. >> sure, definitely. when i talk about the speed, what we are talking about is the change of position. if you have a position in the company, an equity position, stock in a company, you still have to go through that infrastructure to adjust to the market. what we see in the world of bitcoin is a global market,

trading 24 hours a day. it never stops. you see massive movements, because there is a certain herd mentality, people move back and forth. over the past year, there has been a real sophisticated -- not sophisticated in the sense that we are used to, but a lot of these guys are doing it from their bedroom. nevertheless, they get a feel for the ebbs and flows of the market. they are on twitter, on telegram, using all these services are sharing information in a very transparent way, and you see these big movements because they are able to move as this large community, trading confidently. >> talking about that herd mentality, i want to get on the bloomberg. you will be able to see the spectrum of cryptocurrencies as an asset class. we haven't just seen bitcoin on the rise, we have also seen other coins on the up as well. is it heard mentality, that all boats rise at the same time? >> that is part of it.

bitcoin is still the alpha and omega, it allows a lot of us to happen. bitcoin behaves as a reserve currency. certainly, aspect, but bitcoin is still a class of its own. >> talk to me about telegram. you just mentioned how it is used by the crypto people, the industry really uses it to communicate, but it is doing its own icl, and has its own lovers and haters buying into it. many feel that it won't be able to set up the networks, the blockchain network, but it anticipates it will. will the issues in moscow, for example, get that credibility up? >> well, and they complied with that court order, it would have died instantly. the keys themselves are the currency. when you traded bitcoin, u trade cryptographic keys.

court compelling the disclosure of cryptographic keys for the messaging app, that would be taking away one of the main reasons why people invest in cryptocurrency in the first place, protection against asset forfeiture. what we saw was a court saying that you must give us these keys because we need to be able to take away -- even if there's a compelling reason, terrorism or personal safety -- in this case they would be taking money. so had they complied with that, the coin would have had a lot of problems. in that case, it is really good for the coin. this really bolsters the investment thesis around it. here we have a coin that is already willing to stand up to state actors, and that is one of the narratives we are talking about in cryptocurrencies. we are talking about cryptography going from the sole jurisdiction of state actors to

the hands of individuals, individuals wielding cryptography, and you have a company standing up to it. i think it bolsters the case for telegram. >> also the case for the graham coin, but what about regulation in general? how does that bolster the case of crypto? >> it's a bit of a mixed bag around the world right now. lots of jurisdictions are taking different approaches, and i think because we are dealing with an asset class that doesn't really know the borders of the country in a sense that it is a global technology, and if you have entrepreneurial jurisdictions out there, that is all cryptocurrencies need to get going. if they have a place where they can get started -- gibraltar, bermuda, even many of the american states -- then it is fine. bauerle, thank you very much for joining us today, director of research at coin desk. >> thanks.

>> coming up, taking a tumble. shares dropped the most in 24 years. we will discuss why, next. this is bloomberg. ♪

>> president trump doesn't appear to be letting go of one of his favorite corporate target, amazon. he ordered the creation of a task force to review u.s. postal service practices. the post office has lost more than $65 million over the past decade as americans increased their reliance on digital messaging. all of this comes as the president has repeatedly attacked amazon and its ceo, claiming the e-commerce giant is draining the post office of money it can't afford to lose. talking of what can't be afforded to lose, shares of the largest software company of u.k. plunged, at one point down the most in 24 years.

it sank as much as 23% after a surprise morning that sales failed to meet expectations. they say growth will be hit by a decline in reoccurring revenues, and core performance. youing us now with more, were up very early looking at the performance of sage. talk to us about why this sudden significant drop -- they have only downgraded their 2018 outlook by 1%, but it hit the shares. >> yeah, it was definitely a very early morning. i think what happened was last quarter and first quarter, they reported that organic sales were up 6% versus that 8% target from the full-year. investors looked at that as maybe a sign that they couldn't meet the for your target, and this announcement today really concerned that. the 1% shift in the organic growth, i think folks are looking ahead even more.

what about that 10% target over the next three years? this move today was a reflection of that. it was interesting, last quarter they said they had operational inefficiencies, getting up to speed with new products that they had introduced. they attributed it this last quarter to that, end this quarter they reiterated operational challenges in northern europe. in the middle east and africa as well. there are some operational challenges, and investors are skeptical whether or not they will be able to get to that 10% long-term growth. 2018,etter than 1% for that is what i think drove the initial dive. but the stock did recover as folks adjusted to the news, and the company reiterated on the conference call today, there is no change to the longer-term 10% outlook.

i think that may have alleviated some of the pressure, l but it remai to be seen. anr, theydive into recommend being an analyst on the stock. we are more buys out there than sales. where do you think the storyline goes from here in terms of competition? how has sage been managing to keep up with the times? it has had to move to the cloud. where does it face the likes of zero and some of the other areas coming in on its overall payroll and administrative software? >> so it has been a market leader in europe, last year it made an acquisition of the u.s. company, now it is a cloud accounting software for small

and medium-sized business opportunities in the u.s. if you look at their total addressable market, the u.s. is at half of that. they made that acquisition target the u.s. market. next week, which was purchased netsuite is probably their biggest competitor, and they were about $1 billion in sales versus that 100 intact in the u.s. prior to that acquisition. of your competitive market. ,ou also have quick books microsoft dynamics. new,age to kind of start a i think they do have an opportunity, and again, they are starting to market their products a lot more. netsuite, if you think about the oracle market, they have that there is well. >> fascinating to listen. thank you for coming in so early.

coming up, index ventures has more than two dozen syntax firms in its portfolio. we have the latest investment in the global tech landscape. this is bloomberg. ♪

>> i'm mark crumpton, and you are watching "bloomberg technology." here's a check of first word news. russia's u.n. ambassador says the u.s. has adopted a policy to "unleash a military scenario against syria." one source told the security council that moscow continues to observe what he calls dangerous military preparations. after the council meeting, britain's ambassador denied a russian claim that the u.k. state last week's chemical attack in syria. >> this is grotesque. it is a blatant lie. it is some of the worst fake news from the russia propaganda machines but i would like to take this opportunity to say

categorically that britain has no involvement and would never have any involvement in the use of the chemical weapons. >> the kremlin says vladimir putin and the french president have agreed to coordinate actions to avoid further military escalation in syria. france and other u.s. allies are considering military strikes in response to the attack in dumont. hezbollah's leaders say the militant group is not intimidated by the president's tweet that missiles are headed to syria. the leader added that they do not scare iran, russia, or syria either. hezbollah maintains there is no logic to accusations, that the syrian government used chemical weapons in duma.

russia's ambassador to the u.k. says britain's continued refusal to allow russian representatives to meet with sergie and his daughter are suspicious. >> we want to investigate the case. we definitely want to hear her story, how it happened, what happened, we want to see the evidence. the story is not over. for us, this is just the beginning. sorry about that, we want to have a full-fledged investigation. >> the international chemical weapons watchdog has confirmed britain's finding that the two were poisoned by a russian agent. vice president pence is in peru for the summer, filling in for president trump, who pulled out to focus on the u.s. response to and apparent chemical weapons attack in syria. four other presidents have also decided not to attend the summit.

global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. in in new york, i'm mark crumpton. this is bloomberg. "bloomberg technology" is next. ♪ >> this is "bloomberg technology," i'm caroline hyde. as we spoke of earlier, elon musk is making the claims on twitter today saying the vehicle maker will be profitable and positive to the third and fourth quarter. as may be a good time to check in with the company's cash burn. if you turn into your bloomberg terminal, we can see the cash flow. if you go to my bloomberg, three is the operative word here. it has been cast burn as you have seen over the years. we are always below the red line. the blue graph is showing how much negative, where last year,

we had $3.5 billion of cash burnt. this year we are expecting a billion to be burnt through. however, elon is saying no, we won't be burning through that cash. we will be positive. even though analysts expect net losses of something around 192 million and the following quarters. interesting stuff, but you see elon fighting against the charts and the economists reporting. let's take a turnout to look into index ventures, 28.3 million euro dollar paris-based digital health insurance company. it is adding to its portfolio that they have invested in. we caught up with jan hammer. what it drew the firm to the company? >> it is a company that

represents a bigger vision. it is the first business license in france since 1986. is the first company offering fully digital health insurance for companies. it is mandatory by law in france that companies have to culture there workers. their play to the strength, providing copperheads of an clear insurance. caroline: this is an international opportunity? what about the growth prospect? jan: the fresh market is 36 billion alone. clearly we would not have invested if the opportunity was not be on france. for now, the company is building its products in the domestic market but the ambition, could go outside of the french border we sat here in the city of london where you might feel most of the syntax is born here.

caroline: clearly there is an take going on in france as well. >> historically we invested in them driven by history. in london, new york, and increasingly on the consumer side and in san francisco. at index, we have invested about half $1 billion in syntax alone. the case of allen, shows entrepreneurs can be born anywhere. it is a coming-of-age for europe. ambitious companies are born outside of what you would expect them to have, like london, like berlin, and paris is going strong and huge. we have high expectations for the company. caroline: when you say you are active, half a billion put to work, index ventures is talk is one of the biggest players in syntax out there. what is hot right now in the syntax spectrum if you're not just looking at insurance tech? jan: companies that are getting big markets, and what i would

like to say is that companies that are expending the market, expanding the opportunity, the on service and expanding the total size of services offered. as an example, funding circle just here alone in the u.k., 2017, it had extended 600 million pounds to small and medium enterprises. on the robin hood side in the u.s., the corporation does not really -- or has not had access to brokerage, equity investing. about 15% of the millennial population have ever bought a share. robin hood today has over 4 million accounts, and growing extremely strongly. it shows you have net new markets that you can address. and a case of a company, again, europe originated, idn, they are

helping businesses to build completely new markets where those services would not have existed. caroline: you name a couple of companies there, funding circle, and others are well known. and potentially coming to the market, at some point they will go public. we've seen a number of your companies in your portfolio go public, dropbox, comes to mind and we had one yesterday come to the market as well. is 2018 the right time to come to the market? what is it? do we have a perfect storm? jan: i would say a combination of two factors, the markets that are favorable, and we are not here to predict what they will become, but so far so good. let's focus on the company's. we have a cohort of business businesses -- of business is

working to build their companies on private capital for a while. one indicator for their size, scale, and majority, and impact, is the percentage of international sale. dropbox, more than 15% of revenue is derived from outside of the u.s. market. if you look at the cross-section of the recent ipos, the averages more than 30% of revenues are outside of the u.s.. that shows a certain scale and maturity in these international franchises. i would highlight spotify which is not in this for poorly oh, but it underscores why europe has gone, and i would argue as far as europe going to the point where u.s. was a decade ago, but catching up and growing and arguably a faster pace. the spotify ipo is a global phenomenon built on great tactics and one that has conquered the world. i can't predict what ipos may happen, but in our portfolio,

there is a good half a dozen or more companies that are of interest to public markets, potentially come in the near future. caroline: what about private capital that is still flowing? there are reports of their that another portfolio company, resolute, might see a push up in the overall evaluation and a lot more money coming from a new investor. always seeing more private money capital being putting -- put to work in startups? jan: it has never been a better time to be an entrepreneur. the capital is everywhere. it can get and are getting funded. revolution is specifically, they are doing something quite special, we are proud of that company. similar to what robin hood has achieved, broadening the access to mass population, coming with a trojan horse, a project that

is free at the basic level and offering, building a broader range of services on top of that. caroline: that was our conversation with jan hammer. apple is issuing a warning to its employees. they are telling workers to stop leaking information to the media, which could hurt company's sales. they did a memo on the internal blog saying 29 leakers were discovered last year. 12 were arrested. apple says future violations could result in job loss and difficulty finding employment elsewhere. coming up, mark zuckerberg's we -- week has come to an end. we look back at what went down in washington and what lies ahead, next. this is bloomberg. ♪

caroline: fresh from taking on u.s. lawmakers, mark zuckerberg is now taking on one of england's oldest academic areas, cambridge university. during his testimony he said facebook was questioning whether there was "something bad going on at cambridge university that would require a stronger reaction from us." zuckerberg claims that facebook discovered a whole program in which people built apps that vacuumed up the data of the users and the friends. it goes beyond the activities of a researcher at cambridge who is at the center of the cambridge analytica scandal. the university says it would be surprised if zuckerberg became aware that a number of its

academics have been researching user data. joining me now from new york to discuss the week that was facebook, is sarah frier, traveling to washington this week, you have been our eyes and ears. our colleague jeremy has been diving into what else the university has been doing, building up software of the companies have used. how far do we know the investigation by facebook has gone? is there any news? sarah: we know facebook has this long time relationship with academics because we want to understand this force in our lives, 2 billion people on this platform, more than that actually, who are interacting with each other. it is an academics dream to figure out all the societal implications of people talking with each other in a recorded way.

so in some ways, it makes sense to understand facebook academically, especially as we see the influence on elections, people's mental health, so facebook has tried to work to give academics a little more visibility, and at the same time, they want total privacy. so it has become tricky in the past. i was very surprised hearing this from zuckerberg during the testimony that they were not concerned with whether there was anything at the academics level. academics are usually not the person we think of when we think of potential trouble that could come about from learning about things in our lives. caroline: take us back to the room and testimony. it seems mark zuckerberg defended his company from an investor's point of view pretty solidly. did the business model walk away

intact? sarah: zuckerberg gave some answers, that i felt were easy to poke holes into for the long-term. in testimony, they were brought enough that it allowed the questions to slide right off of them and made everyone feel like this is nothing new here. facebook said users are in charge of their data first and foremost. when he was talking about was the data you choose to share, what he was not talking about was the way facebook tracks you on and off the platform. people who are not even users of the platform, later on the testimony he did admit that facebook tracks users who are not logged in, or don't have accounts. that was just one of the many ways in which zuckerberg said he was going to be challenged in

the future. he did a great job at the moment. we are not running quotes" over on the platform that shown he gaps or slip up. i think, right now, we are in the period where facebook will have to answer questions were zuckerberg said he has to get his staff to follow up. i'm really curious to see all of those answers. caroline: perhaps a bit of a media dream that his compensation then comes out. he is being paid a fair bit more than the previous year. talk to us on the numbers you are seeing in terms of zuckerberg's conversation. sarah: i have it pulled up right here. facebook, the compensation went million compared with 5.7 7 million in 2016. that is completely related to his travel and security costs. more than $1 million in costs for the private plane. you went on this sort of tour to understand basic users around

the country, he was in montana, south dakota, new orleans, all over the place. he was trying to understand everything about what facebook users one on facebook and, remember at the time, it is crazy to think about it now, people thought maybe he was running for president or something. people could not understand what the two or was about. i don't know if it increased his likability at all. we have him testifying in front of congress right now. it certainly did increases costs for travel and security. caroline: talk to me about the to where that might not end. many still want their pound of flesh. it seems the cto will be going to the u.k.. any move on that? sarah: i think the company feels if they give zuckerberg to the u.k., they will have to deal with all the other countries that want to deal with him.

certainly we can't have the ceo testifying everywhere. i think they will stick to the u.s., not agree to do it anywhere else unless he is subpoenaed or something. they are sending one of their top deputies, either the cto, or the head of product. caroline: i think the cto has been confirmed for april 26. we will see how they continue to respond to lawmakers. sarah, phenomenal reporting from washington. coming up, earnings season is in full swing and metrics will be the first major tech company to report. we discussed what to expect in the results are next. this is bloomberg. ♪

caroline: the value of elon musk and spacex keeps falling. the rocket maker authorized a $507 million fundraising round and an evaluation of about $25 million. that would make it the third most valuable after uber and airbnb. anything less for the potential to cheer up technology investors, and earnings report from netflix. the company will be the first to report earnings and comes at a critical time. the s&p 500 information technology indexes trading just about the halfway mark between march 12 record and the 2018 blow on february 8. netflix could be the bright side to the tech center. joining us now is geetha ranganathan of bloomberg intelligence. geetha i'm looking at the numbers. these should be strong numbers.

geetha: absolutely. but unlike other companies, in the case of netflix, it is not so much about the apf in revenue, it is really about the subscribers. this has been a subscriber growth story, court or in and quarter out. good news for both netflix and investors is that expectations are really strong. netflix is coming off of a phenomenal fourth quarter. it was actually their best quarter ever. that has been ceding some bullish expectations going into the next quarter. netflix has projected a 30% rise in subscriber gains. the general sense is that they will handle and beat those estimates. they are looking really good. caroline: where, dream graphically are we speaking on the big growth's here. geetha: it's going to come from the international markets, they

are projecting about 5 million new subscriber gains in those markets. the u.s. is kind of a steady state. it is about 1.5 million, give or take. caroline: it is fascinating when you look at the share prices. they got hit by the rough-and-tumble of the market over the course of march, but overall, it has out or formed the likes of facebook, amazon, to a significant degree. it is the bang that outperform significantly. where is the -- how much of the optimism is baked in, how much will they have to keep from over blowing where their subscription estimates are going. geetha: netflix has been unscathed in all that the technology and it continues to be a really big tech company. the shares are up 62% year to date. it is mainly the subscriber momentum. netflix has managed to create

this virtuous cycle as they say, and as they keep adding more subscribers, they keep investing more heavily in content, which in turn drives for the subscriber gains. streaming is a really fierce market and they know content is the main differentiator. they know they have to keep the subscriber momentum going, so they are aggressively going and investing in not just content, they are spending a billion dollars in content. that is more than any other media company is spending. they are also investing very aggressively and marketing. caroline: we will see if the investment continues to pay off. geetha ranganathan, you will be following it closely. great to have you with us. thank you. that does it for this edition of "bloomberg technology." a reminder that we are live streaming on twitter. check us out @technology.

that is all for now. have a wonderful weekend. this is bloomberg. ♪

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