♪ >> i'm emily chang, and this is "the best of bloomberg technology," where we bring you our best interviews of this week in tech. coming up, facebook crushes on whiche, adding new users, puts the earnings report in fortis after a challenging quarter of the world's biggest social media platform. plus, alphabet embarks on a new spending tspree. and face to face of president trump. details on the apple's ceo trip to the white house, and its

potential impact on the u.s. trade relations with china. first, facebook shook off any whiffs of the cambridge analytica scandal when it reported first-quarter results. analysts were impressed with the results, the stock rallied. wall street seems to belie ve they have fixed privacy issues, that we could see more of a dent in quarters ahead. ad sales are near record in users keep flocking to the social network. we spoke with our contributing ontor and deborah williamson wednesday right after facebook reported. >> the revelations have been so late in the quarter that anything, any impact, will likely happen in q2, if it does it all. this quarter's earnings look strong, the revenue looked strong, user growth look ed strong. there's a lot of positive things that happened in the quarter.

we are hard-pressed to find much negative. >> some remains to be seen but there are analysts who told us they think this is a blip. today he said facebook should continue to have long runway. david, would you agree? tough thing it's a to answer in the same language that mark mahaney would use. i do think we are going to see advertisers essentially having no choice but to use face book for the most exact targeting they can get anywhere on a global basis. that's a huge asset for the company. on the other hand, this company is in an absolutely unique, new position where its very legitimacy is being questioned by society and governments around the world. i don't think it's really a possible to predict how the company ends up having to adapt and what its profit and revenue implications could be.

i think we are entering a very new phase for this company, which impressively continues to hit on all cylinders financially, but it is by no means out of the woods. this company is in a position no company has ever been in before, and it might get bad. >> i sat down with sheryl sandberg to talk about the controversy. have run the never company for short-term yet we arety, and seeing these numbers. deborah, what do you think the impact will be on the current quarter? how are you building your models? >> we're watching user engagement really closely. it seems like facebook has always been able to increase the total monthly user base, but we are watching for any sign that there is reduced engagement in terms of time spent on facebook or the activity that people do.

we are also watching for any signs that advertisers will have less access to targeting capabilities. rollingseen facebook back certain things that advertisers used to be able to do in terms of targeting. it remains to be seen whether advertisers will continue to use facebook in other ways and establish new ways of using it. those the kinds of things we are paying attention to. i think david is right, this is a time where there is a lot of question about facebook. q2 is probably going to give us a lot more information about exactly how facebook is addressing these issues. we saw in today's earnings. >> mark zuckerberg is speaking on a call now. you started off addressing the controversy off the top. also, promising to get things in order in time for the u.s. midterm elections. until now, he has couched it, saying it's an arms race but that he would try to.

he is saying they will be ready for the u.s. the term election, in the hope that something like this happen again. bit aboutk a little him pending regulation and how all of that could impact facebook over the much longer term. >> well, every government putting much in the world is considering whether or how they should regulate facebook. since they operate in somewhere around 190 countries, that's a huge overhead of management for them. they are going to have to deal with it. i also think there's a bigger trend which debra might have some thoughts on. i think it is possible that consumer attitudes about targeting to them could be changing at least in the developed countries. i don't think there's a lot of signs of concern in the developing world. but if that were to happen, there are so many variables that are so hard to predict.

in thecky for facebook sense that they are so phenomenally profitable but they are a company in a position like no other has ever been. their profitability is like no other company. they have slightly under $12 billion in revenue and about $5 billion of that is net profit. that's a phenomenal profitability. they have so many things about them that could not be said about any company before. their scale, their global profitability,r the degree to which one person controls it, their impact on politics, their impact on the public square in every country, their impact on media. this is a very unprecedented position for a commercial company to be in, and the world is finally realizing it, which means a lot of work things -- a lot of weird things could happen. >> zuckerberg on the call saying we have a responsibility to keep moving forward in keep building tools that bring people together

in new ways. he's reemphasizing the new focus on meaningful interaction, not just interaction. that changeu think in focus will impact engagement? as they essentially make this shift back toward more personal updates rather than news updates, and have to make some potentially tough compromises. >> yeah, absolutely. i think the focus on engagement is a strong one and appropriate one for facebook right now. i really believe that consumers do have some concerns about ad targeting, about how their information is being used, about how facebook is targeting them, and if it is sharing data about them with other people or other entities. those are all questions consumers have, and it could have an impact on their engagement. they might change their privacy settings, they might decide to

share less information, they might think twice about the kinds of things they do on facebook. these are all things that could happen. we haven't seen it yet. we saw surveys in q1 that were done after cambridge analytica that said, hey, consumers, we are more serious, we are thinking more about privacy than we used to. but the proof will be if people do make any changes. past, weions in the have not necessarily seen a lot of people leaving facebook due to other concerns that the company has faced. >> another stock we are watching, berkshire, surging the most in over three years after -- said investors interested in tapping into ai should go long on the stock. speaking at the conference, the ceo said box is incredibly cheap and undervalued. this is their biggest intraday increase since january, 2015.

coming up, we speak to net single. he opens up about everything from regulation to the president's twitter habits. and if you like bloomberg news, check us out on the radio. this is bloomberg. ♪

>> the earnings roundup continues. qualcomm reporting its second-quarter with adjusted revenue of $5.32 billion, beating estimates. its results seem to indicate that the chinese smartphone market is improving. ebay rakes in $2.5 billion in net revenue, earnings-per-share up. their former subsidiary paypal beat estimates, getting $3.7 billion. twitter/estimates for first quarter sales and profit as its

questions aligned video and personalized content pays off. revenue jumped and monthly active users rose to 336 million. we caught up with the cfo wednesday about the results. >> we have had a great quarter and we are thrilled at the outcome. we accelerated our revenue , and we are thrilled with the quarter. it gives us the opportunity to go back to the areas where we have been, audience and engagement gross. we will be investing in those. 10%-50% head count of focused on those priorities. >> despite this, shares are down. why do you think that is? >> i try hard not to look at the stock from one day to another. we are trying to build something

everyone can benefit from, and that requires a long-term approach. we know that over time the market will reflect that. >> you said it will grow at the same rate in the second half of the year. why are the expectations more muted? gave down margin guidance for the second year and try to help people think about the full year, reminding them that it is harder in the active half of the year. we start to lack the business recovery that started the recorder. we will talk about it when we get there. we feel good about the momentum the pace andess, feeling on the four. we feel really good about things right now. >> everybody's wondering how these increased concerns around data privacy will impact you. gdp are, for example, tighter privacy restrictions -- i will that impact your bottom line? >> it is too early to predict how it affects us from revenue per's active.

-- revenue perspective. we will be watching closely. one of the great things about our business is it tends to be very brand focused, and brand advertising may be less impacted than other types. we just rolled out our new privacy policy around the world yesterday. we view privacy as a right that we all have, and it's important for us to communicate clearly with our users about how their data will be used on twitter. i will remind you, everything that happens on twitter is public. that's one of the great things about the platform. it means the api we give people access to our something that they organize in different ways. advertisers are leaving facebook is spending more time on twitter? >> i don't know what's happening. i can tell you that what's happening at twitter is it feels like it is directly tied to the hard work we are putting into the platform and to our relationship with advertisers. >> mark zuckerberg has expressed

support for your regulation. is that something twitter supports? >> we are definitely open to regulations. a lot of the things people are talking about from a regulatory perspective are making sure users know how their data is used, about making sure that we are clear with people. those are things we definitely believe. >> more hearings in congress. while twitter testify again is invited? >> we are always open to conversations that further the dialogue and help users understand how the data is. >> [about the data around the world -- let's talk about the data around the world. how long will the balance continue? >> these things about how our business started in the united states and grew from there. we have a larger base of business in the u.s. than internationally, so there are more that's new opportunities take the china export market, or the strength we saw in brazil. internationally, 53%. the u.s., when you back out of

business, grew 9%. we feel really good about the momentum in the united states, growing up a larger base and it has turned slower. >> do you have a game plan for president trump, who was notoriously unpredictable, if he suddenly stops tweeting? >> we think of our platform is so much more than anyone user. there is so much great stuff happening on the platform. it is a place where people go to find out what's happening, where they go to be a part of the conversation. we are thrilled at the place where people go to break news, whether it is politics or sports. we see new people on twitter all the time and we are thrilled that the place were so much is happening. >> but is there any way to quantify how much traffic trump is driving? whether it is him or people following him, the conversation around it? >> he has been more active and so much has happened on the

platform, it is hard to unpack any user. much to make the experience better, the timeline experience, the notifications that people get, the events driven approach. >> we as journalists always hear --tter about twitter getting how should we digest? >> we think about the opportunity we have in front of us, and we feel like there's so much we can do at twitter, on our own, to prosecute the opportunity. everyone in the world ought to benefit from what's happening on twitter and right now we have millions of monthly users so we have a lot of work to do. >> so no plans on changing being independent? >> we are a public companies are board has a fiduciary right.

we think about the opportunities of twitter as quickly as we can. >> on the call, jack dorsey said we are not a social network. what did he mean by that? >> we are in interest network. we are a place people go to find a think they care about. people often go because they want to find out what's happening. they want to find out what happened in the stock market. they want to find out what happening around a particular thing that is important to them. although it is social in nature, it is not about the people to whom you are connected, it is about the topics and events you care about. >> that will some of my conversation with the twitter cfo. bloomberg lp producers a global breaking news video network for twitter. still ahead, we breakdown amazon, and the president attacks and whether it has any impact on its business. that story is next. this is bloomberg. ♪

>> amazon now once in on your car. the online retailer can now unlock and deliver packages to your car if you own a chevrolet, buick, gmc, or cadillac. the vehicles must be a 2015 model year or newer and have an active service plan. this service is available to all prime members through amazon key. warns if theigroup u.s. social service raises rates, amazon's profits could be cut by $1.3 billion. of course, that's a little more than 1% of its annual earnings. president trump claims the post office loses money in its contract with amazon, of the post office as it makes money that is legally prohibited from charging shippers last than its delivery cost. speaking of amazon, the tech giant released first-quarter results thursday. we broke down the numbers with

brad stone. personal, -- first of all, i have the same feeling with facebook. what with all the noise about? it was really captured by president trump's tweets and none of that matters today. instant needs of all dimensions. amazon is growing very quickly. they added a 60% increase year-over-year, and a $.6 billion net profit. unheard of at amazon. the very profitable parts the business like aws and advertising are increasing, and that north american retail business is going up also, probably because of those 100 million prime members, which jeff bezos emphasized. >> so the tweets from president trump haven't had much of an impact, however shipping costs did rise 38%. lots of noise about the u.s. postal service and whether they might raise prices as a result

of the things president trump has been dumping. crawford, when you take a look at these numbers, do you see any red flags? any weakness? >> no, it's kind of the opposite right now. , you areas saying seeing this massive multiply to scale at the companies experiencing. shipping costs rise because that is related to the top line and the amount of business they are doing in parts of the commercial side where they do business. me, in the press release where he talks about the significant lead that aws has, and how they have very little competition, with they are doing now is adding services, and that translates into not only revenue, but also significant profits. a subscription business on a subscription business. we are seeing that multiplied scale in a huge increase, almost

50%. should mention that microsoft also reporting their sales are strong, in part due to the cloud business. .ws is far in the lead our companies like microsoft and google really a threat or -- -- abouts increasing. high is increasing. quarter,n the 44% last so this is a wind that is propelling all these companies forward. the companies that are suffering are the ones that weren't as early. >> what about the younger businesses like grocery delivery, in whole foods, amazon echo? these are small businesses now, but how big of a become? >> they can become quite large. we will see very significant that willalexa, and

be high double-digit growth for a long time, because they are trying to build up that platform in the foreseeable future and they have a significant lead over google and a very significant lead over microsoft and apple. we want to connect these services together, you will see a huge push toward combining the platform, torm to connect and intelligently control more devices in your life. whole foods, on the other hand, is a fascinating acquisition. obviously we are seeing the benefit of that now in terms of think weter, but i will be able to see them unlock the power in terms of how you can combine aws to the alexa platform to the whole foods experience. that party is just getting started. >> let's talk about advertising, the other revenue category.

in part because of amazon's advertising business, which some analysts are excited about, thinking it could at some point surpassed facebook rival google. what do you think? >> you don't want to get too far ahead on your expectations. i think people are really excited right now, because they really haven't known what to make of this business and how to model it going forward, and clearly the statement today is that this business is a real business and it is accelerating and can accelerate based on the platforms amazon is building. >> on the sidelines, they have also announced that the nfl is renewing its agreement with amazon prime video. >> right. and this is a cost saver. this is the part of the business that does invisibly bring in revenue. you say there's a connection to prime membership and retention, but they are clearly concerned

about netflix, which is on its own runaway growth streak, and they are investing heavily in new shows. it's a multimillion venture for that "lord of the rings" series. they are renewing their more high profile shows. >> and this is the part of amazon that has been in turmoil. they lost the head of the division -- >> they haven't quite figured it out, not in the way netflix. it continues to be a work in progress. it is remarkable that this is a company that shares 1.6 billion in income, despite the fact that they are drunk sailor in hollywood right now. >> thanks to brad stone. ahead, yet another big tech company out with earnings this week. alphabet reporting on monday, showing how much google is investing in the cloud income devices and hoping to catch up with amazon and apple. and a reminder, all episodes of "bloomberg technology" are live streaming on twitter. check us out weekdays.

this is bloomberg. ♪ welcome to the xfinity store.

i can tell you about... streaming the most free tv shows and movies on the go. yeah, and... xfinity internet. it's so fast! and you can save by... by getting up to 5 mobile lines included. whoa, you're good. i'm just getting started. ♪ simple. easy. awesome. come see how you could save $400 or more a year with xfinity mobile. plus ask how to keep your current phone. visit your local xfinity store today.

♪ emily: welcome back to the best of bloomberg technology. i'm emily chang. google's parent company reported sales of $29.4 billion, topping estimates by $65 million. it eat highest estimates. paid clicks jumping 55%. capital expenditures tripled from $2.4 billion to $7.7 billion. the results also came with a clear result to wall street. they are expecting a new spending binge. andalked to rob o'donnell colin hoberman on monday for more. >> i think the real big takeaway here is that google looks pretty

professional compared to some of its competitors, namely facebook. i think that's been pretty apparent and the way google has not really said anything recently since the cambridge analytica scandal and facebook. this is back and said, all good news for us because we are the ones that look like the big guys, the more professional tech company in this instance. emily: i did just get off the phone call with alphabet cfo and we asked her about future privacy regulations, how this could impact the business. what she had to say about gdp are, the new regulations in europe. working on itbeen for 18 months and had a strong privacy program and we are building on it. we feel well-prepared to meet these requirements. i asked how it would impact the

business and she didn't give a straight answer. she said most of our at his this is search which relies on keywords. we have been committed to requirements. my interpretation of that is that she's indicating it will not impact business very much. what is your take? >> i think it will impact business but to be fair, search ads are different than the kinds of ads drawn by facebook. there is a difference. i will give them that much. clearly, we will see impact here. emily: how much? markat's the big question is how much. and they are more adult like, but let's be honest, there was an interesting story in the wall street journal that google has more data on all of us than facebook. been conveniently ignoring these issues, but as if we start to see privacy regulations come out, we can see google even more impacted by those regulations.

their business model is more balanced, so they may face more sanctions and not have as big a financial hit as facebook might. emily: i asked her about the new legislation facebook and twitter said they would support around transparency. google has been notably silent and some lawmakers have noticed this and called on google to state their position. i asked why aren't you publicly supporting this yet and she says we are continuing to monitor new threats and put in safeguards. make of the fact that google hasn't stated their position on the honest ads act and that lawmakers are asking? >> ivan google has been quiet and it goes back to what bob was saying. the majority of ad revenue is , which is different

than the ads that have been and headlines. it's more of a display advertising ad format that targets people based on what they know explicitly about different customers. search advertising is revolving around keywords and terms people are putting into google. yes, google does make the search results different and will target advertising based on stuff they know about logged in consumers, but it is quite different. i think that's part of the reason google has been hesitant to say anything. they goes back to, they are waiting to see what comes of facebook and twitter. for more of the social advertising scandal perspective. emily: we are listening to the alphabet earnings call right now. the q&a portion is starting. also on that call, what do you make on sort of the broader trends you are seeing here? she spoke to me about the big that's, which are cloud,

youtube, and hardware. that's where they are investing and where they believe it will pay off. >> i think they are right. there are a number of areas we can expect to see alphabet grow their business. even waymo, it's not generating revenue now that the way they are positioning waymo is interesting and could be very effective as people like tesla run into certain issues. emily: speaking of that, we just got a quote on that and we are going to play that and i want you to follow up. take a listen about what she said about waymo. achieved 5, we have million miles of driving on city streets, adding the latest million in just three months. we announced a long-term partnership with jaguar, land rover for their fully electric high pace vehicles. is really waymo comprising a bigger portion of the bets because they moved nets

under the google umbrella or it now you have -- google umbrella. that's have waymo and where they all are at the moment. and it's a big one. >> i think it is. verily is the revenue they are getting from fiber, but longer-term loamy think about actual bets, waymo is the most important that. -- important that. philosophically, they are not trying to do the semi autonomous driving. they are saying we know people get distracted and we know the situation that occur are going to occur and we are going to wait until the technology can do that complete picture. that's an interesting philosophical difference. that will be a good bet for them in the long run. on the compute side, they will be able to drive ai services like ibm duds with watson. google branded services is yet another cloud service add-on

that she referred to a little bit in the comments on the call earlier. emily: ruth told me that verily driving are only $150 million at this point but the operating is $571 million, which may bring google and waymo investments into account. there has always been so much focus on these others that's, but i wonder if that will be less and less now that the pie is essentially getting smaller. do with a google does lot less on some of these bets, merely because it's so small compared to its main revenue driver, the advertising revenue is pretty high margin for them. they are the dominator there and it will be interesting to see. this quarter didn't reflect too much of the campus analytical scandal with facebook since there was only two weeks we were able to look at. it will be interesting to see next quarter.

are they growing the revenue high larger as advertisers think, should they be placing bets in facebook or go someplace that looks better and more trustworthy in google? that will be interesting to look at in the coming quarters. emily: google is in the lead, then facebook. >> they are small. estimates are $2 billion last year. amazon captured. but we spoke with a number of cpg marketers listing their products on amazon and are increasing their spend on amazon as much as 60% year over year. they are also offering amazon advertising platform, which is there demand-side that form, displayility to provide advertising on amazon and sites off amazon advertisers can use. a competitor to google double-click. as people look at that as a way to say, we can use amazon's behavioral and purchase data

they have on consumers to target them in other places outside amazon, you start to see people like bmw or bank of america, who can't lift products, start using amazon as an advertising platform. emily: forrester researchers: coburn and technology president bob o'donnell there. this week, spas fight introduced a free version that targets 1.5 billion youtube users. it rolls out ahead of youtube's new subscription music product. operates the biggest music downloader in the world. coming up, tim cook meets one-on-one with donald trump after a state dinner. we tell you what we discussed behind closed doors. we speak to the man behind ofel, the chinese market

driverless car's in 2030. this is bloomberg. ♪

♪ emily: more headlines from amazon this week. the company is working on another big that, robots for the home. amazon has embarked on a top-secret plan to build domestic robot. the hope to be putting robot in homes by the end of the year. a rollout for consumers in 2019 could follow. the e-commerce giant is promising to entertain ford children. it's releasing a new focus skills for alexa digital assistant. plus there will be an echo. design for children. a magic word feature will make its say please when asking alexa questions.

apple ceo tim cook made his way to the oval office to meet with president trump hunted a trade war between beijing. hemp has been vocal that will get apple to build their computers in this country instead of other countries. before the meeting, he tweeted, looking forward to my meeting with tim cook from apple. we will talk about many things, including how u.s. has been treated unfairly for many years. mike dorling taught us all the details. were know the topics discussed. it was about trade and of course, for apple it's important to have open trade especially with asia and president trump wants more limited fair trade. but the white house and apple haven't told us much about what was said. we know that cook met with the president in the oval office and we know he also met with the president's chief economic

advisor, larry kudlow, and he also had a meeting and the office of the u.s. trade representative. clearly very focused on trade. emily: obviously the president decided to pursuit tariffs on chinese goods, which could disproportionately hurt apple given how many of its products are manufactured in china. do you think there is any chance tim cook could influence the president in the opposite direction? >> i think there's a real chance it has some influence on the president, maybe not enough to persuade him on other things, but he does listen to and admire successful ceo's, maybe more so than academics or other politicians. so he does value those people's opinions and he had a conversation with cook before and in fact, after the tax break, which cook praised and which apple benefited enormously from, apple talked about

building more facilities in the a headquarters here in a new location in the dotted states. trump was very happy with that and praise that. there is a rapport there, at least a working relationship, and the category person is someone trump admires. maybe not enough to stop him, though. emily: bloomberg's mike dorney there. chinese startup horizon is looking to dominate the market for driverless cars like 2030. they are about to close a new round of financing that will raise $700 million. the founder and ceo told bloomberg the money will be spent on wrapping up research capability. take a listen. -- toexpect the race raise several hundred million u.s. dollars. we are going to have some new strategy masters.

as ourar, we had intel strategy master. this year, we are going to have another major player, semiconductor global player. which is not intel. to be part of our team. we are going to have some major leading oems, mobile and local, as our masters. so that's very exciting. >> how do you compete with the lights of nvidia or mobileye? what gives you the edge? >> we targeted a new space, which is artificial intelligence for autonomous driving cars. that means we need to develop the technology, facilitating the competition, very efficient, low power consumption all the way to

decision-making, like trajectory planning. this is a totally open new space. in this new space, everyone has opportunity. we have a global level of competence for technology and we have really challenging traffic situation. we have massive markets. together,ee sectors we have full confidence to deliver on the cutting edge of technology. >> facebook, alibaba, they are also making moves into the chips sector. how much of an impact is that likely to have? >> that's extremely positive. that means people really push forward artificial intelligence. they need to think about to redefine and innovate the ai processors. i think that's great. i think alibaba and facebook, their primary focus is for the

consumer to handle business. like small speakers to the customers. >> this is not a direct threat to you? >> no, we are doing something like a moonshot, right? and they are not doing the same thing, that level. so we are not competing. >> whether or not the u.s. decision to erect barriers to its tech assets makes your business proposition more compelling. >> i would say in reality, yes, because trump administration's decisions probably will urge the china government to spend more money on the type of core technology in business. >> do you see yourself as being a key part of china's made in china 2025 strategy? >> i think one part of us is to

be the leader by 2025. chinalion cars in equipped with our processors. we are going to be the number one player in that space. just think about, by 2025, i think of most of the cars, 70% of the cars, will be equipped with these ai processors. and our robotics is going to be the only player in china, right? i don't see any reason we cannot achieve the goal to be the market leader. kai speaking exclusively to tom mackenzie in beijing. cooper is out with a second annual deyverson report. was there enough of a progress report? we talk about it next. in case you missed hbo's silicon

valley, bloomberg technology made a little cameo. here's a clip from episode five. >> welcome. today's a big day for you. one day before elite announces their box three, you are coming out with a competing product. tell me what your new internet is and why they should be afraid of it? >> maneuver? >> spoken like a true coo. don't miss the rest of silicon valley on hbo this season. this is bloomberg. ♪

♪ didi chang has replaced the ceo with one of its own executives according to a report in recode. tony g will take it on the startup. he was the general manager and ran the luxury business. didi also bought the taxes in

january getting a foothold in latin america and broadened its global war with uber. uber has increased the number of women working in tech roles i 2.5 percentage points in the last year. but they still lack in silicon valley. the reported diversity get after an account of sexual harassment written by former software engineer susan fowler rocked the industry and the company, in its second annual report, stood at 18% of the employees are women. we are joined with more. >> i think 2.5% is not a lot, but -- started in september. he has been ceo for seven months. it will probably take some time to really turn things around. interestingly, a lot of progress was made outside the u.s. and canada. they slid backwards somewhat while other regents became

significantly more female. emily: what about underrepresented minorities? >> i think african-americans are about 8% of employees in the u.s. where they really track it. clearly there is more work to be done and i think the growth was similarly small in terms of improvement. emily: what are you hearing from inside the company about the cultural transformation? >> i think people are more optimistic generally and think the company is taking steps. we haven't seen a close look at their diversity work since he took over. he hired the chief of diversity inclusion, the reports into leanne on field, so that company says it's working, though we will still have to see how it pans out. emily: what do we know about market shares? we spoke with the president of

lyft and they have been getting significant market share on uber in certain markets. i wonder if the needle is turning back little bit. >> i don't think we've seen that yet. i think uber will be shouting from the rooftops if there was a shift backwards. 40-50%been talking about in some markets. remains theer dominant player in the united states and is a global player where lyft is focused in the u.s. and i think toronto. lyft has gained ground and is holding on to it. emily: speaking of ride-hailing on the other side of the pond, the chinese service didi talks about what could happen this year. it could be valued at $80 billion, more than uber. according to the journal, they are considering other ways of raising capital, including selling convertible bonds. what do we know? >> a lot of these valuations, as

we learned on paper until something real happens and it's been a situation where companies, especially didi from soft tank, have -- softbank, have raised a lot of money on the markets. uber says if they want to go public towards the end of next year, and we reported that they are sort of looking at, as their chief financial officer, which would be a key piece as going public. have gottenmpanies so big they are certainly talking about ipo's, so it's credible turbid -- credible. but with the actual value is, we will see. upfrontnd they been about uber targeting an ipo somewhere in the 2019 range. doesn't matter -- does it matter if didi gets to market first? >> there's always a positioning

story. i think it will be relevant. they are very different relevant -- different markets. uber owns a significant stake in didi and also the markets value ridesharing, that's good news for uber. they are largely competing in different markets. if anything, the question is, who is the better marketer, uber or didi? but one doing well is probably good for the other. does it for this edition of the best of bloomberg technology. be sure to tune in this coming week for a busy week. we will be a live from the 21st global conference to kick off the week with a fantastic guest lineup. we will hear from mark zuckerberg tuesday and bring you for coverage of apple earnings and tesla on tuesday and wednesday. tune in every day and remember,

all episodes of bloomberg technology are now live streaming on twitter. that's all for now. this is bloomberg. ♪

♪ bang in beijing or a quiet revolution in china's financial sector? how successful mifid ii has been in achieving goals of transparency, and what is next? welcome to "bloomberg markets: rules and returns." i am nejra cehic.