emily: i'm emily chang in san francisco and this is "bloomberg technology." coming up in the next hour, amazon holds its annual shareholders meeting, and activists and protesters turned up the heat on the normally low-key affair. we are on the ground in seattle. plus, the price of bitcoin remains well off its december highs. regulatory concerns have slowed them down. has the crypto craze run out of steam? and how the online payment startup strife has grown into a

giant, valued at more than $9 billion. we will hear from the cofounders and brothers, john and patrick. but first, to our top story. amazon holds the annual shareholders meeting in seattle. and while the event is normally low-key, interest this year is high. various activists are protesting over taxes, working conditions, diversity, and more. inside the meeting, ceo jeff bezos outlined the agenda for the coming year and answered questions about antitrust issues. we are joined by our "bloomberg tech" reporter, spencer. tell us what jeff bezos had to say. reporter: probably the biggest question that came up was on the antitrust issue. a shareholder simply asked, you are getting so big, attracting so much attention, what is your take on this, and his response was it should be expected and he , talked about the company's

growth, even going back to 2010 had 30,000 employees to nearly 600,000 today. he mentioned any institution of that size should expect scrutiny, and his comment was that we should not take it personally. we have to make sure when the scrutiny does come that we pass with flying colors, so that was his basic message to shareholders on concern about antitrust issues. emily: there are various kinds of protesters there. amazon air pilots, some people protesting jeff bezos's amount of control at the company, some people saying the ceo and chairman need to be separated. walk us through the cast of characters. reporter: yes, so there was a group saying that bezos needs a boss. that was on some of these signs. to see thent chairman and ceo role broken into two, to give bezos more oversight and break up the power and concentration he has over the company.

the board was against that. that was one group who had signs and things. there were some environmentalists there. they had a big globe, saying "big size equals big responsibility," basically saying amazon should be a better steward. there was an lgbt group, and they are concerned about the search for headquarters two locations, that several of the states that are semi finalists have laws that are discriminatory against the lgbt population. they had a big box truck driving around. there were pilots that fly for prime air, and they were concerned about contract negotiations trying to put , pressure on amazon to put pressure on their employers to give them a better contract for their employment. emily: now, there are a number of different shareholder proposals up for consideration. as you look at the year ahead, what do you think the hottest button issues will be?

spencer: well the regulation was , -- antitrust issues was a big concern among shareholders. there were some obscure issues brought up, but one issue certainly is diversity. reverend jesse jackson was here , and he was emphasizing the need for amazon to be more diverse, saying that the all white board in 2018 basically does not represent america. there was another former security guard in amazon who worked for a contract company, and there was a plea for amazon to hire these people, not simply contract the work out to another company and then not necessarily , take care of the employees, that amazon should bring everyone into the fold so they all get the same benefits of working for this large, growing company. emily: all right, we are going to talk a little bit more about the lack of diversity at amazon and on the board a little later in the show.

spencer soper for us in seattle at the amazon shareholder meeting. thank you. for more on amazon's agenda, i want to bring in our bloomberg global senior executive editor, brad stone, who wrote all about amazon in his book "the everything store." also with us, a "bloomberg intelligence" contributor. let's start with the antitrust issue, since that was top of mind for jeff bezos. what do you make of what he had to say? >> it is sort of a measured response consistent with what we have heard from amazon, like, we welcome the scrutiny, we need to pass it with "flying colors" as he told shareholders. i mean, look. he has the advantage that what we have been hearing from washington is an emotional argument. amazon has a 28% market share in the u.s., the strongest market, it's by no means a monopoly. you have to sort of redefine amazon to put them in the penalty box, and i think he speaks from a position of confidence.

about we will talk more the highlights from that report a little later in the show. i want to talk about the business. amazon continues to maintain small margins. it used to be a big concern, but, recently shareholders have , not been saying anything about it at all. i wonder, are concerns about profits at amazon a thing of the past? >> sort of. revenue growth was always the likerevenue growth was always the key and will continue to be the key. the market share is significantly higher. what is interesting, after the whole foods era of amazon investors expected them to take , a margin hit, but they did not. they actually surprised on the upside. what they ended up doing, instead of changing the model, they started taking the low hanging fruit, no pun intended. so they are maintaining margins while maintaining double-digit growth at a very high revenue rate. very few companies in the world can do that consistently. so that's the focus. emily: i spoke with stephanie

landry, the head of amazon prime now and also the head of amazon fresh. i asked her about to our delivery and how they can continue offering such a thing at such a low cost. take a listen to what she said. stephanie: our delivery is expensive. in order to think about cost, we are focused on efficiency. we have done efficiency in a number of ways. first, knowing where the customers are and where the demand patterns are helps a lot. next, we leverage a lot of the algorithms and logistics expertise that amazon has developed over the last 24 years. we are really great at bringing stuff to customers, so we think we have a lot of advantages to do well in this space and drive efficiencies, and then scale, getting customers to use product. those are the things we're focusing on to drive costs down. emily: brad, do you buy the argument that at a certain scale, they can drive the cost down? brad: oh, yes. that is the history of amazon

supply chain. they introduce something like prime back in 2007, they take a massive loss on it because they , are guaranteeing two day delivery -- at the time, it was $79 -- but there are enough people using it that they are filling the trucks, and it becomes profitable overtime. emily: i went to ask you about some of these privacy concerns. we've covered the alexa issue where it recorded a couple's private conversation and send it to a contact, there's also facial recognition software that amazon has been basically giving to law enforcement, which the aclu has also said is a privacy violation. how serious are these? brad these are not great. : the echo is in the foot race. google home out sold echo in the first quarter of this year. it reminded me of the iphone saga, where apple admitted they were degrading the battery performance of the new iphones, and the conspiracies about the echo turned out to be true, but i think the brand is so strong that, they came out and

explained the accident, and they will survive it. amazon wants to be in the business of government. they are competing with microsoft for a $10 billion jedi contract. i think these privacy concerns are a speed bump for amazon. think it's actually a good thing is happening now. facial recognition computing is -- we shifted from a mouse and keyboard to touch screens, and smart phones. that is how big the deal will become later on. more issues coming up now, it's better to solve it before the industry explodes. so you can expect to billions of devices in the future being voice activated, voice controlled, so privacy being big right now is a good thing. emily: what about m&a and partnerships? there was a berkshire hathaway, and also a health care partnership, very unexpected. they bought ring, the doorbell company. are you expecting more sort of unexpected buys like

this? brad: we never quite know. amazon thatethos at they buy what they can to build. i think that's why they bought whole foods because they had trouble with amazon fresh. if i make a prediction, they are looking to expand the alexa ecosystem, finding ways to get into the workplace, automobiles, to integrate alexa with other appliances. you never know. but that is where i would place my bets. emily: jitendra, do you have a prediction for us? jitendra: logistics is a big area of expansion. to scale revenue, they have to scale the ecosystem. delivery needs a lot of work. they started expanding in different states, but basically once they fix the delivery, they can attack a lot of these acquisition targets that we here in the news, but whenever we hear about the news that amazon is entering x and y, we need to do the reality check.

the delivery service ready to benefit from it? emily: let's talk about international growth. amazon has ambitions in india but they did not get the acquisition of flip cart. walmart did. what are you watching when it comes to international growth? brad: international growth is almost flat. in the u.s., it is great. they are growing by leaps and bounds. it has been a challenge for them. i never thought they would win the flip cart acquisition. it would have been a big regulatory challenge. i think they are trying to throw their body in walmart's hat, but i think we've seen the movie like the marketplace to australia, logistics, like actual prime to the netherlands, expansion to latin america. it is slow going, though. it seems that is an expensive avenue of growth and their emphasis, at least right now, is elsewhere. emily: and we've also got walmart's shareholder meeting that we are also covering.

jitendra: to that point, the margins are taking a hit. it is a long game they are playing. 90% of amazon revenues today are made by five countries. u.s., u.k., germany, france. all the expansion stories we hear, we have to look at it from a longer-term lens, and the profit term declines might continue for a while. -- bradedstone and stone and jitendra waral, thanks. teslas model three has scored a coveted recommendation from consumer reports. the magazine initially declined to recommend the more mainstream model after testing showed it took longer to stop been a ford f1 50 pickup. since then, elon musk has ordered a software update that improved braking by over 20 feet. testers still have concerns but about wind noise, a stiff ride, and an uncomfortable rear seat. coming up, uber struggles in

europe. title of aarned the uniform with a $1 billion valuation. if you like bloomberg news, check us out on the radio, listen on the app, and in the u.s. on sirius xm. this is bloomberg. ♪

emily: european ride hailing company taxify has been catapulted into the legion of unicorns with a $1 billion valuation. this comes after raising funds led by a group of investors. the latest round, taxify secured $175 million from a european venture capital fund and a

number of interesting investors, including the chinese ridesharing service. uber is stepping up the battle for dominance in europe as it weeks to gain a hold in the region. joining us to discuss from london, we have bloomberg's caroline hyde. caroline what kind of ammunition , does this new funding gives taxify in a market where the winner is far from assured at this moment? caroline: yes plenty of , competition heating up in europe, particularly as we seek uber continued to struggle with european regulators, particularly here in london, trying to win back its license, which was suspended, of course, back at the end of last year. $175 million being poured into this company, more than three times what was originally being targeted, as was reported. a big chunk of change from another strategic investor, this time the mercedes-benz maker daimler. another was getting into the

industry, and that gives the ammunition to go deeper into the countries it is already within. in fact it is within about 25 , countries. they have really focused on eastern europe. they are big in hungary, romania, the baltic region, and interestingly, in africa. the emerging markets are doing well for this particular company. this is where the money is going, to develop the technology, and improve operations in the home markets of europe and africa. emily: walk us through the way the competition is playing out in the european market right now. you know who is ahead, who is , vying for the top spot? caroline: i mean uber is still , ahead. they are pretty much in one way or another in every single market in europe. where they are able to get the and regulatory wind behind them, they are dominant players, particularly in paris, and even though their license has been somewhat revoked in london, they are still able to operate in the biggest city outside the u.s. here in london while they appeal the claim.

we understand it will be going through the courts as soon as june. therefore, the rest of the competition breaks down in between the likes of the hailing companies, like my taxi and get. they work with black cabs of london and other countries trying to avoid regulatory scrutiny by working within taxi companies that already have the license is there, and also, on the other side, is the companies such as taxify that are, once again, trying to empower drivers, for example, and trying to take on uber in a similar means. i think what is particularly interesting with taxify is the way in which they basically find a second entrance. they don't want to fight regulatory fights, they want uber to do that for them. i spoke with the ceo of taxify in september of last year when they announced funding from didi and their partnership there he talked about the way in which , they strategized growing. listen. >> there are millions of people. thousands of drivers.

and then we come in, and we improve on that by having cheaper commissions, and giving more back to the riders and drivers. illig, talkingus v to me there back in overall, the september 2017. competition is heating up, and particularly where you have difficult markets, such as london, which has been testing uber's resolve and grinding their ability to grow to the extent they wanted to. we are seeing other companies come out here to talk to regulators as well. it's only going to get more fears in terms of competition in europe. emily: we talk about how we may likely see regional monopolies in ridesharing as opposed to a global monopoly. does taxify have ambitions to expand beyond europe, to the u.s., for example? caroline: i don't think so. they have not ruled it out from the reporting that i have seen markusn i spoke with

last year. became ahy didi supporter and investor. they want to bet on local champions. taxify, which was born in estonia, a thriving area of technology in estonia, and they have got very good tech talent. they birthed a lot of strong companies, of course. we, therefore see this is an , area that wants to focus on europe, on africa, and i think africa could be a real area of strength. they are number one in a number of markets there. emerging markets they really , need mobilization and transport using and solutions. emily: all right caroline hyde , in london. caroline, thank you. coming up, one hedge fund manager has a novel way to turn a profit from investing in tencent, whether shares go up or down.

details on that, next. and "bloomberg technology" is live streaming on twitter. follow our global news network on tictoc at twitter. this is bloomberg. ♪

emily: consumer rights groups in europe have kicked off a series of actions against facebook, seeking at least 200 euros in compensation for each user for violating privacy rights. cases have been filed in france, italy, spain, and portugal. the group made a statement saying consumers are not puppets that facebook can play with at will, and the apology from ceo mark zuckerberg in the wake of the cambridge analytical scandal are not as enough. tencent remains one of the biggest tech firms in the world. the stock has seen dramatic swings over the last year. one hedge fund manager says he has a novel idea to invest in the company without taking on so much risk. the founder and ceo details his strategy to stephen engle from a conference in hong kong. take a listen.

>> you know, the spark has been bullish for so many years that people are not assigning high probability to a selloff. and just to be clear, we are not calling for a big selloff in the stock, but if one were to occur, have auts will significant amount of value. reporter: what is the distribution of your call? you are also saying go along with some shares. >> that's right. we would do this on what we call a theoretical delta. it means when you buy the put, we are recommending that you buy the march 2019, 25%, at a tend delta, and that means you buy 10% of the stock when you buy the put. where the stocks to rally a lot, you will lose money and the premiums, but make quite a bit of money on the stock you are long. so this bet really allows you to make money in extreme moves either way. if it's down a lot or up a lot, you will actually make quite a

lock on this trade. steve: would you consider your call a bit of a contrarian view? because a lot of the put option premiums are so low, because look at the consensus ratings on this stock. more than $500 is the consensus rating. we have morningstar calling for 641 over the next 12 years. it is a 399 stock right now. the bets from the institutional banks, it is rising. benjamin that's my point. : the dominant view is that it will go up. if it were to go down, it will really catch people by surprise. one of the things i talk about in the presentation is from a market cap point of view, the company already has a half $1 trillion market cap. it's amazing. no question about it. but market investors know that and analysts know that. if the stock hits the target people have, up 30%, it will be bigger than google. world's fifth-largest stock. 85%, it would be bigger than apple.

a $1 trillion stock. can that happen? yes, but it's not probable in the next six to 12 months. emily: that was benjamin fuchs speaking with stephen engle. coming up as amazon holds a , shareholder meeting, new questions are being raised about the power held by its board. we will discuss, next. and later, we sit down with john and patrick and what they have to say about the possibility of going public and when. this is bloomberg. ♪

emily: this is "bloomberg technology." i am emily chang. let's return out to our top story amazon holding its annual , shareholder meeting in seattle. the event has raised some concerns. separatepushing to jeff bezos' ceo and chairman roles. others are protesting that there should be more minorities on the -- should be considered for board seats. on publicmen to serve and private boards, and amazon initially rejected the shareholder proposal that they interview more diverse candidates, and there was an amount of protest, and the company came back inside, ok, we

are going to do it. is it actually going to have an impact? >> well, i mean i applaud any , company that takes steps in the right direction on this topic. moving toward having a more diverse board will be positive for the company. and i think it sends a great signal to other companies. the hope is that others follow, but let's be honest, there is there is still a long way to go. this is step one. emily: amazon has three out of 10 directors as women, but they are all white, though actually it's above average when it comes to gender representation in similar industries, similar size, so is it fair to pick on amazon? shannon i think there's always : more work to do. fortune 500 companies private companies, only 7%. amazon is at 30%, but not at parity. there will always be more. emily: one of the issues that has been highlighted, the wall

street journal just had a big story about founder control and the amount of founder control that tech ceos have, special stock dispensations, special , voting rights, influence over the company. we have seen how that can work in the wrong direction like at a company like uber. is that part of the problem when it comes to the lack of board diversity? shannon absolutely. :diversity we can think about , that in a lot of different ways. ethnic, cultural, dispersion of power. at the core of it, i think it is about having a diverse set of andes around the table, then the supervising roads, i think that is dangerous. i think it is very important the power remains distributed so the board can play its role in corporate governance and have oversight power. emily: a bank study found that

while more startups are focused on diversity and inclusion programs, they say, but when you do the math, the majority have all-male boards and don't have any female executives. more than half of them don't have any female executives. how powerful is a diverse board in terms of that trickle-down effect and encouraging diversity elsewhere across the company? shannon: right. it is absolutely critical. these things come from the top. first of all if you have a , different point of view, expressed at the table, you are very likely to better meet company challenges and that are likely to have financial outcomes that are better, and the data shows that. from this standpoint, it is critical. i also think it is also critical for culture. as we see some of these changes after all of us. and amazon has this great opportunity.

they are starting from scratch. do you think that is something that is realistic? >> i don't think there is any reason why this is impossible. a phenomenal pipeline of talented women at all levels, certainly, and all the way up through the pipeline. i am not sure why amazon is not bringing more diversity to the table. >> this amazing woman, so in why can't we find more? why isn't the demand finding the supply?

>> the first is the topic of independent board members. it is a male dominated industry. seeking out operator point of view, independent board members are a great way to get diversity. the other issue is homogenous networks. one of the other thing the board list does is search for talent there might not be access to previously. there are great women across all verticals. >> where are you seeing progress, and where are you still seeing challenges?

we see progress. as we start seeing these things move, this is a positive sign and we still have a lot of work to do and we need to remain focused. >> it is not just about adding women, it is also about people of color. strategiesme sort of , for companies that are finding themselves in this so-called predicament, to find hidden talent, essentially? >> the board list is a great place to start. -- quite people know great people and your platforms

are built on an endorsement level. there are no concerns about qualifications. that is one thing companies can do. also, it is about embedding diversity into the conversation. are takingpanies -- getting referrals from the employee base. >> thank you for stopping by. it is another sign of trade tensions between the united states and china. the new measures trump is proposing would reduce how long a chinese citizen could stay in the united states. the white house says it would protect american intellectual property from being stolen. coming, bitcoin hits a low. about thelk to a ceo

regulatory hurdles crypto is up against. this is bloomberg. ♪

emily: are we looking at the beginning of a bust for bitcoin? it is below the 12 month trailing average for the first time since october 2015. you can check out this chart on and look at a lot of

volatilities due to regulatory uncertainty. in's brought in more money 2018 last year and we are not even halfway through. we are joined by the coinlist ceo andy bromberg. prior to this, and he was ceo of sidewire. he cofounded the stanford bitcoin group. also, joe weisenthal is here. andy, i want to start with you. you had a spectacular rise and fall, but also volatility has slowed down. this could be a step toward wider adoption. on the other hand, people say the craze is running out of steam. which one is it? >> i think we are seeing two things happen here.

first, a bifurcation between high quality and low quality. last year, investors were not sophisticated, they were figuring out the market. now the high quality ones are able to raise money and a low-quality, not as much. the second is increased investment from investors all over the world. you are seeing investors talking about i feels all the time, increasing sophistication from investors which will drive the industry forward. emily: i will put a similar question to you. is it the start of a boom or beginning of a bust? reporter: i don't know the answer. i wish i did. but i do find it to be pretty striking the way in which we see this relentless decline. obviously, you mentioned bitcoin, but pretty much all of them all at the same time, despite the fact that we get a pretty steady drip of news coming out about infrastructure being built out, institutional interests being developed, partnerships between startups in the area and legacy companies doing trading. so much of the hype in the second half of 2017 with about this wall of institutional money that was supposed to come into the space. we see a lot of the building blocks for that continuing to

happen, but it's obvious that has not translated into price increases the way i think a lot of people would have guessed. emily: and at the same time, the doj has opened a criminal probe into whether there is manipulation. has serious is this? reporter: we don't really know the details or what specific things are going to be going after, but there are obviously a lot of pretty shady activities in the space. there are pump and dump rooms where people get together and try and manipulate a coin. there are credible accusations of false trading designed to spook people into thinking the price is doing one thing and not the other. i think part of this is the theoretical institutionalization of the space, you get a lot of players were happy to see bad actors rooted out. emily: how much of a concern are the shady activities in the business you are in, and the concern about pending regulations?

andy: there are real concerns, especially with shady accusations. we look at this as a market developing quickly. traditionally, it developed over decades or even centuries. we are seeing the same thing happen in crypto markets in months or years. it is happening so quickly. there are a lot of bad actors and they need to be rooted out. we are happy with the doj investigation and manipulation needs to be stopped. figuring out how regulations apply to the crypto space is a good thing. it is really important. seen forward-looking statements from the agencies so far. we see it as a good thing for the space as it gets professionalized. the institutionalization is happening and that requires regulation. emily: you are working on building on a platform where accredited investors can invest -- ico's, but isn't that the thing ico's were created to destroy? >> we think it was made to fund protocols. we want to work under u.s.

securities law and offer those securities to american investors. we also partner with companies like republic, and equity -- and equity crowdfunding platform allowing non-encoded -- allowing nonaccredited investors to invest in securities from our sales. at its core, we think access being granted by the token industry by ico's isn't necessarily that it has to be granted everyone in the world, but just that it opens up fundraising. traditional, venture capitalism is done by relationships and very few people get access to deals. in this world, even if it is just expansion to other credit investors, that is still a huge improvement. emily: the amount raised is down from a march sort of spike. what is your read on that? joe: the levels are still extraordinary. this sort of speaks to what i was talking about before, the two different crosswinds. yes, you see the prices declining and signs of the air being let out of a bubble, but still, the interest is enormous.

to andy's point about ico's all over the world, it is still remarkable how even with the price decline, it just doesn't feel like there has been any letup whatsoever in the interest in the space, and emily, i'm sure your inbox and email address is flooded with blockchain and ico pictures. -- pitches from pr people. mine hasn't slowed down at all, even with the out price decline. emily: absolutely. add the word blockchain and people think you will get enthusiastic response, but it's actually the opposite right now. andy, who are your investors? mostly high net worth individuals, family offices, hedge funds? >> when we talk about the coinlist in the platform, it is a huge swath of

people, and it's challenging to characterize. everything from small retail investors that write $100 or $1000, all the way up to endowment's, cryptocurrency hedge funds. the majority of the money gets from hedge funds, but we see it way more from smaller retail investors that are excited to invest in token sales. emily: we talked a little bit about bitcoin as a store of value, and we spoke to the founders of stripe, who stopped accepting bitcoin as a payment method because it was so volatile. i am curious, are you more optimistic about some of the smaller cryptocurrencies, where some say it may have more potential to be used as a true payment method and a valid store of value? joe:i think the odds are still stacked against them. certainly, there are other coins that in theory are better for payments, maybe they are designed to be faster or designed to have cheaper transaction costs, but at its heart if you are going to accept

something in a form of payment, you have to have some believe it is money, to some extent. -- believe it is money to some extent. i don't think the other smaller coins have come close to achieving that level. bitcoin hasn't really gotten there yet either, but in terms of its durability, the fact that it is subject to the least change, it is clearly the furthest along in terms of something that people would recognize as a durable value, even as volatile as it is. emily: two sides of the same coin. joe weisenthal and coinlist ceo andy bromberg. thank you for joining us. coming up, our sit-down interview with stripe cofounders patrick and john collison. how the $9 billion company takes its partnership with big tech players, including amazon. bloomberg live is hosting an exclusive event on june 20. techis for c-suite executives in silicon valley the , menlo park edition of the

exchange, a special event involving the security landscape. if you want to join, visit bloomberglive.com. this is bloomberg. ♪ emily: mary meeker of kleiner

perkins presented her internet trends report for 2018 at the code conference. here are some key takeaways. people are increasingly spending more time online. in the u.s., adults spent 5.9 hours online, up from 5.6 a year before. 2017 marks the first year in which smartphone unit shipments did not grow. it was a banner year for voice him controlled products like the amazon echo and payment adoption -- mobile payment adoptions. europe is becoming increasingly competitive with silicon valley when it comes to building successful tech companies. that's according to john collison, cofounder and president of the payment company stripe.

i sat down with both brothers from ireland in the latest edition of bloomberg's "studio 1.0" to talk about how the online payment startup will into -- will a billion-dollar behemoth. we talked about competition and the lack thereof. >> i think there is a desire to set these things up as stripe versus banks, and x versus y whenever there is a narrative. a large fraction of the time when people are building businesses on stripe, they are building businesses on white space as opposed to replacing another business directly. what's motivating for us is 5% of global commerce takes place online, the other 95% is off-line. that's what we mean when we say. no one has to fail. emily: you are doing partnerships with companies that can be perceived as your competitors like apple, google, visa. walk me through the strategy. >> we think all of those

consumer payment methods will be successful overtime, but what -- over time but what has always , been lacking is a platform for the businesses to just manage in abstract complexity of doing business online in 2018. what is required, even for tables takes to get up and running, managing the payments and the treasury and the regulation, the compliance, all the complexity that goes with that, first off, take doing that in the u.s., and then all around the world, that was heavy beforehand. i think it was a damaging effect where only large companies could do it, and not quickly. if you look at what businesses are doing today, they are changing, much more global, more complex. that's what we are focused on, and that's why apple pay has been growing like a weed. that is phenomenal for stripe. emily: stripe has been working with smaller businesses for a long time, but bloomberg broke the news you are now working

with amazon, facebook, microsoft, booking.com, lyft. how does a startup that is still growing serve such huge companies? >> i think our success with these larger companies is not despite the fact we started working with startups, it is because we started working with startups. when you start as a startup and when you serve them, you cannot bamboozle them with fancy sales materials and a big marketing campaign. they will not get deceived by it. they will assess you precisely on the product merits and what helps them innovate faster and fulfill their ambitions as rapidly as possible. it is really punishing. we were forced to build a product to help them execute as quickly as possible. emily: stripe makes money by charging a small fee on every transaction. you are now processing billions of dollars a year for hundreds of thousands of companies taking payments worldwide.

you are reportedly valued at $9.2 billion and have raised 450 million dollars in funding. some say the valuation is not justified. we have seen companies going to the public markets that have not been able to hit the market cap they raised at privately. do you have any concern you will not be able to hit that mark? >> i think we are paranoid that we need to execute strongly to hit the market, but when you look at potential market size to support that valuation, absolutely, many times over. the internet economy is so vast and smaller than it will be if we have a good infrastructure to support it. emily: do you see stripe as a public company? >> someday, quite possibly. but the way we have always talked about ourselves is we are , in such an expansion phase, so far from reaching the plateau

when things will stabilize and the business becomes predictable -- i was in asia last week, and there is just such vast opportunity there for every internet business, stripe included, that we are so fixated on making sure, how do we ensure that while stripe is in the u.s., europe, asia, latin america that we are really , capitalizing on opportunities there, and whatever there long -- the long term structure of the company is, we will set it within that. emily: john and patrick collison, cofounders of stripe. check out the full interview on the latest episode of "studio 1.0." , 9:30 p.m. inday new york, 6 p.m. in san francisco. that does it for this edition of "bloomberg technology." tomorrow, we will speak with the arm ceo. that's all for now. this is bloomberg. ♪ >> right now it is all new, a

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