emily: i'm emily chang and this is "the best of bloomberg technology." coming up, our exclusive interview with president trump's campaign manager, also known as the secret weapon who ran 5.9 billion eight look at in 2016. amidst swirling concerns of russian meddling. plus, google slapped with a $5 billion fine. by eu antitrust enforcers.

who were becoming to change the way they put apps on devices. plus, amazon finds its footing after a rough start with technical glitches on prime. -- day. but first, to our top story. the white house has struggled to explain trump's behavior in a widely criticized news conference vladimir putin. the president sided with the kremlin, questioning u.s. intelligence findings, in essence attacking u.s. democracy. since then, he has issued a belated verification, undercut his own reversal, and then made new comments contradicting intelligence again, sending his spokeswoman out to deny it happened. as the swirl, we sat down with his campaign manager -- 2020 campaign manager. run the mostmp

successful operation in campaign history, so much so, that he has been elevated to running his entire campaign or 2020. he has worked closely with social media to hone the campaign strategy. another company he worked with, one at the heart of facebook's recent data scandal. we sat down for an exclusive interview at a mobile marketing event to talk about the groundwork he is laying for 2020, and its concerns about russian meddling. >> my focus is on the midterms. to understand, holding the house and growing our lead is important. done, it isgenda important. what you see, from a camp standpoint, is us producing a supportive role in that. we take a supportive role. we've money, options, content

and creative things we can do to help. we can help from a geo tv standpoint in several dma ways. ,that is an important role, to make sure we can do everything in the president's campaign and committee to support them and do everything we can to hold the house and the seats. emily: knowing what you know what are lessons you've learned ,? what will you be doing differently? >> that is a deep question. in 2016, i do not have a basis of information. i came in with a clean slate which was an advantage for me. emily: you have never run a campaign? >> i run a campaign, but never put up a campaign. lots of product campaigns. i had great support. the republican national committee came in. i had jared kushner side-by-side with me. he was my boss, and was great.

i had eric trump also. we would bounce a lot of ideas off of each other. they are an amazing family. and i had the best boss in the world. a guy that is our constant director, our political director. he was always leading the right direction. what i really learned was how important it is to understand the data. i knew that going in now, and even more now to learn to ask questions to those who have experience doing it. i've been doing a considerable amount of reading in scriptures going back 100 years. i've done everything i could to educate myself and this will be a much more grind it out, long-haul for me as campaign manager. i also believe the president can finish by getting rid of the unfair balance between china and the tariff problems if he continues to grow his economy with wages and increasing personal economies.

as he continues to solve national security issues to make the world safer, i don't know if it will take a lot of work. it might end up being like where i can just drink starbucks on election day. emily: you made 5.9 million facebook ads. will you make that many this time around? these were super precise micro-targeting. >> i don't know that answer yet. we will have to see what the playing field is. some days i wake up and i think the social media, maybe not play fairly. emily: what you mean? >> maybe they want to make the api harder to do those things. right now facebook used to be , that we could put an ad up in a few seconds, now it takes a couple days. it's hard to put up that many ads when you cannot use it automatically. emily: and he recently met with them. >> i met with them and i brought it up as one of my items i was frustrated with. i said this is a kind of change that is biased towards us. understanding how our technology

works, you created a rule which made it more difficult for us to use that. that is a frustrating standpoint. maybe we do take that away. i don't think we won't figure out a way to get it done. that time, and right now, we have a popular president. he is more popular than election day. he is the most popular republican president in modern history. i think we will see a successful trump in 2020. emily: it's ironic that you are frustrated with facebook when they played a key role in the election. >> i've been specific that facebook wanted in a lot of ways. president trump facebook is the one. .1% that delivered his message. if facebook did not exist, he would be a lot tougher. facebook connect of the country. it connected rural cities across the country and different types of backgrounds. it is doing exactly what it is

designed to do, connect us all. i think facebook is also a liberal company, maybe it's management is not, but it has an inherited by us. like these other companies, it is based in a place that is extremely biased. i can see it today, being up here and talking to you. northern california is not eastern kansas. their employees have bias. those decisions go into every line of code they write and everything they do. they will have to swap that and try to kill that. but i will tell you, facebook more than all of the companies is trying to kill it. the question you're asking is whether or not they can crush that. i do not think they can. inherent bias is significant and it is up to me to be a leader in our party and somebody running the campaign to make sure the companies are held accountable and that they do everything they can to kill the internal biases and provide an even playing field for the companies. emily: what about twitter? >> they did not contact me back from the letter we sent.

i've spoken to mr. dorsey a couple of times. i feel the company is more squandered with bias. i think the platform itself is not useful with putting out press releases and for the press to figure out what is going on in the country. emily: and it is ironic that twitter is the president's megaphone. >> that's what i say. it is good for press releases. trying to convince some of the on twitter is like going to a bar at 1:30 a.m. right when they turn the lights on and sell something to somebody. if you can do that, you can sell something on twitter. facebook is more like a church on sunday. emily: there is concern on facebook engagement and trusted trust -- trust in a social media. what are the platforms that will matter most in 2020? >> i think youtube from google will play a bigger role. as we see cable tv move over to internet-based shows the

, continued use of watching television content on tv, i'm sorry, on the internet is a significant change from tv. i think youtube will play a role, a larger role than 2016. emily: how so? >> i just think it is where eyeballs go. they are finite in some ways. you can only place ads so many times. if you are watching facebook for four hours, and next year is three hours of facebook and one hour of youtube, that changes. we are going to monitor where eyes are going. i think youtube continues to work on the platform and make improvements. while google has done to the search algorithm to what youtube at the top, they continue to put a lot of focus and understand the value of that platform. we are watching closely and using it for a lot of things now. we are probably using it more now than 2016. even this early out. i think it will increase trend. emily: how will you divide your budget between digital tv and others? >> it is too early to make that decision. you never know. youtube could blow up. we are all watching youtube on

our phones and it will skyrocket. the day i had to make my budget decision and make it with the team is the day i will split that up. that might change hour-by-hour as well. i hope that google is paying attention to what facebook and twitter are doing. they are even a bigger company. probably even more honest, especially their ceo. they invest their time and money, whereas markets like mark zuckerberg has been better at saying less biased in his own personal views. he has a view of what progressive america is, but he tries not to influence politics as much. there are people that try to directly influence it. i will be curious to see if they are able to swap down the bias of other companies and keep youtube as an equal playing field. right now, conservatives are already saying they have been shut out of youtube. videos are valued within their

-- and the valued within their algorithm. conservative messages in america are important. there is still a lot of faith-based people and they believe in what that means. i hope google would not cut that out. emily: you have been accused of crossing the line, of suppressing the black vote. you hired in cambridge analytica. >> i have been accused of it or bloomberg said it? emily: quoting a trump campaign official that there were attempts to suppress the black vote. >> an anonymous trump campaign official, right? yes. no, that is something that we we did. do we show negative ads? yes. do we suppress anyone's vote or intentions to do so? no. emily: that was our exclusive conversation with president

trump's campaign manager. shortly after the interview, president trump did retreat from his statements in helsinki saying he accepts at conclusion that russian metal. but as we said, he quickly introduce doubt. meantime, top republican lawmakers attacked one of the legal protections most prized by social media companies. they are questioning whether they should be held liable for content posted by users. bob good lie asked companies why they should be treated differently from hotels, who face legal responsibly for a property.on on their coming up, one of the most important days on the amazon calendar. it blew through spending records. property. we speak to the exact in charge of amazon prime next year and if you like bloomberg, check us out. this is bloomberg. ♪

emily: the overs ceo says the ride hailing company does not need to be profitable before a planned ipo. speaking at a conference in aspen, colorado, he said he is more focused on generating cash flow than making the company profitable. morehave burned through than $10.7 billion since being founded. shoppers brushed aside the technical glitches that marked the opening of prime day. shoppers spent a record according to sales. up 33% from a year ago. they say sales in the first 10 hours grew at a faster pace than last year. of course, in spite of the website and app crashing at the start.

we caught up with their vice president of prime at the amazon campus in seattle. and we asked how they get the deals in front of the right customers. >> you would be surprised. the launch of the whole foods benefits has been the most successful. . knew these going in i said when i launch this was our most important launch. that the adoption of prime and early signs in the lead up to prime day has been truly phenomenal. members have already save millions of dollars through the purchase of whole foods. what is a win look like in particular? >> it is a celebration event. celebratingin 2018,

20 years of amazon as well years of the prime program. important for us is to try to engage as many as possible, to make sure they have a great day and find the right deals. and they walk away remembering why crime is great and white makes her lives better. this is a celebratory event about engaging with our members and exposing new members to what is still the best shopping deals in history. a unique, of shopping and entertainment benefits, and we keep getting positive feedback. amazon recently raised the price of prime for the first time since 2014, talked to me about feedback. any reduction in renewal rates? >> no. start engaging with us through our shipping benefits. increasinglyee higher renewal rates as they engage with our entertainment.

many members will start off shopping and then stick around for the entertainment. we continue to be humbled by the response. we prime day, last year, added more members than on any given day in history. we are expecting a big year this year. emily: it has historically had its limits, yet today you have cash prices, discounts. is it working, and what category? >> it is across all categories. it continues to be a great back-to-school shopping. last year, we sold more back-to-school shopping supplies than on any other day. customers were able to find and do all of their shopping. we are expecting strong engagement across all of our categories, including devices. emily: talk to me about what friends you are seeing in terms

of how people are using echo to shop, rather than to play a song. we are seeing customers engage in prime day in a variety of ways. i purchase using my echo devices many times. customers can go to any device and ask them what are my deals? and they will get personalized recommendations. we are trying to make it as easy as possible for people to find the phenomenal deals we have. emily: and what are you doing behind the scenes to make sure there are not hiccups? historically, there have been glitches. how do you make sure it is not like a rubbish sale? what i can tell you is we start planning for prime day the day after the prior prime day. , verya companywide effort

focused on making sure it is a great event. the other ones were relatively minor glitches, and customers are able to find a deal. that was some of my interview with amazon's vice president of prime. is onahead, this startup the verge of transforming the entire transportation industry. we go behind the scenes. and later, after netflix's earnings stumble, should investors be worried that second-quarter results would fall flat? this is bloomberg. ♪

emily: they have completed the ninth flight of their record -- record -- rockets. the booster blasted off from the

launch site in texas and then performed a test, designed to very passengers to safety in case of an emergency. in the crowded driving space, this startup is standing out very in the latest episode of hello world, ashlee vance meets the cofounders, trying to make the robotic cars the go to write shares of the future. all make poor life choices. take these two guys. they are the founders of a self driving car company and they have decided it makes sense to try to compete against this. [indiscernible] >> but they are different. their rivals are adding self driving technology to existing cars. meanwhile, they are making a new type of vehicle.

basically, they are making a robot. and his early incarnation looks like the love child of the matrix, mad max, and mednax. down under, this man was a well-known design. -- designer. one day he had and a tiffany, a vision of the future and came here to build them. >> i saw a future of how it could work and said i need to find a brilliant computer scientist and it led me on a journey. >> that's brilliant computer scientist is dr. jesse levinsohn, a stanford grad sought-after by none other than google itself. >> i visited google that in 2013. fell over this one guy and he is really good. i said go and get him. >> a lot of your colleagues have

run off to companies like google or uber. what are you to this? -- drew you to this? >> i have been working on this since 2005, and it was clear that it would be one of the more transformative technologies. it is not just enough to solve the technology, you need a business that makes sense. and i had not seen that in any other company until i met him. that vision is a system of completely autonomous vehicles that can be summoned like a list or, dare i say it, and uber. clear vision, which is the ai and mobility will take us out of the age into the next mobility age. >> they take me to the alameda

air station, where i am enough to get a test drive and see how it handles. these are unique vehicles, designed in a way that would only make sense if they are autonomous. they are fully redundant, have batteries, architecture. you can see they are rigged with sensors that can fire without human intervention. do you want to go for a ride? they have placed cones on the tarmac, and the robot will. them -- dotchin them -- dodge them. and i will do the whole test backwards, because they decided it would be funny. with one swift keystroke, i give control of my life over to nai -- an ai.

>> it really doesn't get old. these ai robots cranked to the course at 45 miles per hour. and the vh five is set to rip through any delightful 75. >> all these different forms of steering. dual motors and direction. take on manyess to of the world's leading tech companies? yes, of course it is. but i say go forth tim and jesse, we all await our next robotic rideshare of the future. emily: that was bloomberg's ashlee vance. you can catch more on bloomberg.com. up next, opening up the android market. what does the eu decision against google mean for its competitors, smartphone makers, and android?

just a reminder, we are live streaming on twitter and follow our news network on twitter. this is bloomberg. ♪

emily: welcome back. it is a record google wishes it had not set. the eu has fined the company $5 billion over its android policies, the biggest ever in an antitrust case. the eu says illegal practices pushed google services in front of users, and google was ordered to change the way it puts search ask on android smartphones. caroline hyde caught up with the eu commissioner after this decision was made. >> the key takeaway was the fourth of the way she describes this. these are very serious illegal behaviors.

you don't hear that often. the size of the fine is so eye-popping. sure it is a drop in the ocean , compared to the amount that google can afford. they have more than $100 billion in terms of cash and investments, but it is a record-breaking number. she went into length trying to do -- describe how to vindicate this sort of a amount because of the dominance in search. the fact that it was so dominant means that they can a lot more chunk of change in terms of digital advertising revenue. that is why, because it has been going on since 2011, she can weigh in this fine the $5 , billion. once again, she is talking tough while there are such strained relationships between the eu and the u.s. emily: so, talk to us a little bit more about what the real impact will be here on google. it sounds like a lot of money, but for a company of that size, it is a drop in the bucket. caroline: you are right, but now it is whether they change the business model. they have been given just 90

days to change the way in which they currently tied in the likes of google search and chrome browser into deals with mobile phone makers and telephone operators, that they have potentially agreed to be exclusive in the past. all of that has to be unwound within 90 days otherwise they will be fined even more, up to 5% of average daily revenues for every day they don't rectify the situation. with the same way the shopping ruling happened last year when they thought google pushed their own search engine for shopping too much and was hampering competition, they never gave a prescriptive ideal of what google should go out and do to change their business model. i really pressed her on that. here is what she said. >> the obvious minimum is that the contractual restrictions disappear. you find a lot of things in contract. can't do this, can't do that. but it is for google, and it is their sole responsibility to

make sure that this infringement comes to an effective and. that remains to be seen and what choices they make. caroline: she wants a change of contract. that was clear. i also wanted to ask her, how do you make sure this is effective? as i mentioned, with the previous record fine, 2.4 billion euros that google got in terms of practices of shopping in google. they once again, many complained that some of the tactics used have not actually rectified the situation at all. how can she ensure that competition will improve? take a listen. >> i think it is very important to see in the follow-up of the first google decision that we have taken no initiative. -- decision yet. that is for good reason. we cannot say that google is complying with the decision. that is very much an open question. we will do the same thing. we will monitor if google lives up to this decision. caroline: there is your hint. i think she is saying look, we have been monitoring how google has responded to the previous

fine and previous desire to change the way in which they promote their own shopping website over and above other competitors. at the moment, we cannot say whether or not they comply. i think this is a veiled threat that google, we might start fining you on that respect. you have to start complying to this new respect. emily: google disagrees with this decision and says they will appeal. what exactly do they need to do now? caroline: i think google has already come out and are really orcate -- trying to educate to put their point of view across in the statement saying, today's decision rejects the underlying business model that supports android, which have created more choice for everyone, not less. we intend to appeal. this is really google trying to spell out that the mobile system they provide android is free.

it is an open source free operating system. that has allowed mobile phones to increase in numbers, to become far cheaper because the phone makers have to invest in making operating systems themselves. they feel they have added to competition, benefit the consumer. what if, potentially, the change operations can a longer be free if they cannot lock in revenue by making sure google is the favorite search engine. i think this is the key question of how google reacts. clearly, they feel they have done the economy and the industry a favor, rather than a curse. emily: google now has 90 days to end their illegal conduct. now, illegal conduct. appeal aside what has been the , reaction in brussels? caroline: it has been one of sort of a shrug of the shoulders. yes, it is an eye-popping fine and they have to change their

business model, but is it too little too late? i think some people feel it has been two years in the making since it was first shown a light on by the eu. they feel that perhaps google has more than 90% in terms of market share for search. really, can this change matters now? i think notably, perhaps even if the find is eye-popping it is , not able to rectify the competitive landscape. i caught up with one company that was affected by the previous ruling on googles shopping. this is the ceo of staples saying we need to go even further in terms of the way google has to change. >> we want to see a competitive marketplace. at the moment, google doesn't seem to be able to do that. a lot of us say, the only way to do that is to break them up. we are not the only ones saying that. you have the boston globe two months ago. you have the chief economist of the competition authority saying it only the other week that this is the only way to enforce google properly fixes markets.

>> i put that to the competition commissioner, as to whether or not google should be broken up. she thinks that would push the discussion into the long weeds and would take too long to make the market competitive. and, i think overall, she feels these companies do benefit the consumer in terms of they make good quality product. they just need to apply by the letter in the law in her mind. interesting to see how the u.s. reacts. and whether u.s. regulators start looking quite so closely. emily: that was caroline hyde in brussels for us. on thursday, president trump weighed in on the record fine i told youeted quote so, the eu just slap a $5 billion fine on one of our great company. they truly are taking advantage of the u.s. but not for long. google is appealing the fine.

still ahead, the cofounder of the ground down for a lengthy sit-down. how they fought off uber and raised billions. this is bloomberg. ♪

emily: a former apple engineer pleaded not guilty in federal court after being charged with stealing driverless car secrets. they were arrested just before boarding a flight to china for downloading proprietary finals, after leaving a position at apple. he admitted to downloading apple files for continued access. they claimed he never shared confidential information from apple. when it comes to ridesharing in the united states, the first things that come to mind are uber and lyft. but in southeast asia, it is a different story. in the battle for ridesharing

supremacy. that market is expected to grow to more than $20 billion by 2025. one of the top names in the space is grab. they beat out and bought out uber's operations in the area as it operates in 225 cities across eight countries. now grab is now setting at sites , on creating a we chat like super app. encompassing everything from map , payments, to food delivery. we spoke with their cofounder. >> every year is a new journey. and we first started the company, the initial ambition was to sell space in malaysia. since then, we have grown from strength to strength. 225 cities, eight countries, what was the outlook for future growth? how much bigger can the market before you? >> we launched grab platform which is our strategy to go into much more. it serves food logistics, services,, financial

and we want to become southeast asia's everyday super app. emily: grocery delivery is one of the newest ads? tell me about it. hooi: we launched a partnership with happy fresh. four grab fresh, which brings grocery deliveries to all of our users. we think this is tremendous because groceries are the highest average household spend for all southeast asian families. emily: do you think you can do all of these things well? hooi: this is why we are very focused on the partnership first approach, and it is a critical pillar and how we launched the platform. we want to bring together the best partners on board to leverage the assets we already have. to date we have more than $100 , million. we serve more than 7 million drivers and agents. we have the largest distribution network in southeast asia. and of course the technology , platform that has been built as well for just southeast asia. emily: what areas are you considering to expand to?

what are you considering? hooi: we are focusing on every day, not everything. things like, of course, groceries. we've also launched a cyclist platform with cyclist and scooter partners. what you should not expect from us is things like massages. emily: how do you guys make money in the partnership structure? hooi: i think it is different depending on what kind of business and what kind of services we are getting. our partners can partner with us on three types of methodologies. happy fresh is fully integrated into our services. they will use happy fresh in the app. for that, they will be using our services all block payments, deliveries, and a service. we will also have partnerships where we partner with e-commerce platforms where we can see grab a pay and grab deliveries as part of the checkout.

there are these different kinds of transactions, and there is a third one engaged in our platform with grab rewards which is the largest platform for rewards in southeast asia. feed,so our news content where we launched a partnership with yahoo! last week. emily: as you guys are expanding, singapore's antitrust agency accused grab of having monopolistic power in its home market. i know you said you disagree and plan to appeal. how? hooi: for context, that singapore government two weeks ago launched a preliminary announcement on some of the investigation into the acquisitions. firstly, we disagree with it and of course, there is a form of appeals process which where we are writing officially to them as well as having ongoing conversations. if you step back and think about why this is happening, of course this was one of the largest , transactions of southeast asia. we are not surprised the

regulatory bodies are doing their jobs. because they want to same things we do. which is for the best customer experience for the citizens of singapore, in a way that is pro-innovation and pro-business. emily: do you think you will monitor your strategy is a result of these inquiries right now? it is interesting to have the antitrust agencies, but you also say you want to be a super app. hooi: think about what we have been doing over the last six years, over our history, we have been doing it consistently where we create markets and build new businesses via technology that changes the status quo. now, because of that, every time we do anything that adds value, it is growing, changing, building in a way, disruption in a positive way. all of our conversations have always been focused on what we call -- we work together to

figure out how to deliver this outcome. it always also takes a bit of time to figure out how we do it together. emily: last year, grab made a coup getting uber's shares. how is the integration going? hooi: it has been a fantastic experience so far. of course, it has not been 100% smooth. dara sits on our border now and dashboard now, i actually saw him a few days ago. and he has been a great board member. operationally, the integration is doing well as well. all drivers are using our platform and it has been pretty smooth relative to the size of the deal. emily: when they did this, i never quite understood it. how does the communication between you and him work, because grab and uber are still competitors and other territories. hooi: grab is very focused on southeast asia. uber no longer operate in southeast asia. emily: so you have no plans to

expand beyond the southeast asia? hooi: it's important to understand southeast asia is a huge market. with tons of opportunities. population wise, the third-largest in the world. it is larger than north america and the eu. there is a con of growth opportunities which is why we are moving into a platform play to become a super app or southeast asia. emily: what are issues that you and dara are working through. give me an example of the future challenges. what we are doing is like he is a board member and other shareholders, and he is great at. he has been able to become a business partner and sitting on both sides, he gets to share what has worked in uber and what has not while he learns from my experiences as well. emily: you mentioned grab is -- was started to address safety, and a grab driver was

stripped and robbed. in what was a harrowing, 12 hour ordeal. what are you doing to better protect drivers? hooi: we're doing a lot. these incidents make us extremely said, because we know there is so much more than we can do, not just for passengers, but for drivers as well. some of the recent things we have launched have been like emergency buttons, which are collected -- connected to local police enforcement. passenger ratings which was , historically not needed. i think it is important to note

that as the economy evolves, many different people are taking means that are not great to earn an income. we are doing what we can fulfill the promise of becoming the safest platform in southeast asia. right now, we are five times safer than any alternative transportation. we want to make it zero safety incidents. emily: that was a graseck cofounder. cofounder. candy industry keep up with bullish sentiment after outperforming the broader market? we discuss. this is bloomberg. ♪

emily: texas instruments has ousted the ceo over a breach in the code of conduct. he resigned after less than two months.

this at the violations are related to personal behavior inconsistent with our ethics and core values, but not to company strategy, operations, or finances. his predecessor will resume the role on a permanent basis. netflix is disappointing second-quarter report raising big alarm, as shares tumbled. their biggest drop in two years. the results were seen as surprising the cousin their massive growth, which shows no signs of showing down. but overall, big tech shrug off the news. nasdaq hitting new record tuesday and looking at the bigger picture you can see from . we spoke with a chief global strategist and bloomberg opinions share open. >> i have been continuing to overweight tech for a few years. for all sorts of reasons, but having said that, if you look at the faang index, it is actually at a higher pe that was in

january, before all the volatility. price is not at the index level, it is not quite as overextended as it was back then. but it is certainly up there. regardless of what you might think about the individual theiries, it seems like earnings season for the other guys coming next week, really the stars have to line up. a lot of caution will be needed here. longer-term, i would expect that amazon, in facebook, in google, will be aggressively bought. emily: there is still a question of whether netflix is subscriber is a blip or a speed bump or part of a longer trend. >> the interesting thing was it was not just the weakness in the second quarter subscriber number.

netflix was also forecasting a decline in third quarter numbers.r maybe the company is being conservative with its forecast seeing what happened with its second quarter. it's interesting that we were talking about sort of two soft quarters in a row for netflix. which makes a little bit harder to argue the blip scenario. emily: now, michael, we had an analyst at bernstein saying crowded trades are typically already priced for perfection. stocks don't react much to incremental positive news. while negative news has much more pronounced effect. we've seen stocks run up and up. even in the midst of volatility around facebook and controversy around the cambridge analytica. even facebook has bounced back. so what should investors be skeptical about? there is a fair amount of

caution that has been coming with this rally since the facebook candle erupted. you can see that in the options market. asked,look at the end he that is actually much stronger than it is for the sb exports. additionally if you look at the , level of ndx volatility relative to vix it is in that top spread 10% and it's been that way for some time. what you are seeing is people are playing this recovery from the facebook scandal, that rally, but they're going into it with a fair amount of protection. which i think is healthy and may mean whatever dips we get over the next few weeks out of earnings season are not quite as dramatic. ,mily: that said, amidst tech if you take a closer look at the numbers, valuations are still incredibly high.

>> netflix and tesla, my goodness, does any marginal buyer look at valuation ratios or do they look at the story? in both cases, they qualify as a bubble. being a bubble does not guarantee they will underperform, but it makes it awfully likely. emily: are netflix and tesla in a bubble? stocks,a look, those are two throw tesla in there, that have never traded based on their valuation. either you believe they will be big or you don't, and do not care what you are paying. those three stocks are the exception. if you look at companies like microsoft, google, and facebook, they are not terribly expensive. in part because those companies have enormous earnings and enormous earnings growth and earnings profit margins.

though they are coming down a little bit, at least google and facebook. some of the tech giants are really expensive. but not all of them. emily: you summarize netflix as a religion. showing cracks in the foundation and now people are asking questions about it. expound on that. >> look, you put tesla and amazon in that religion bucket too. either those are stocks and investment stories that you believe or you don't. the problem with those kinds of narratives if you have these data points like an earnings miss, it called into question the entire belief of the faith system. that does it for this edition of "best of bloomberg technology." will bring you the best on

technology and the weekend stay on earnings. tune in each day, 5 p.m. new york and 2 p.m. in san francisco and remember, we are live streaming on twitter. check us out and follow our global breaking news network. this is bloomberg. ♪

♪ >> bracing for brexit, eu members are told to escalate reparations for a no deal outcome. culture shift. attempts to tame the city of london after scandals. tipping the balance, but cap not joins the u.s. supreme court, what does his appointment mean for financial regulations? welcome to bloomberg markets "rules and returns" i'm nejra cehic in london.