emily: i'm emily chang, and this is the "best of bloomberg technology." where we bring you all of the top interviews in tech. coming up in the next hour, our exclusive interview with the trump 2020 campaign manager, also known as the secret weapon who ran 5.9 million facebook ads for trump in 2016. his strategy for reelection amidst swirling concerned about russian meddling. google slapped with a fine from antitrust enforcers who ordered the company to change the way that it puts search and browser apps on android devices.

amazon finds its footing after a rough start with technical glitches on prime day. we speak to the man who heads up the time business. first, the white house struggles to explain president trump's behavior in a widely criticized news conference with russian president vladimir putin. the president seemed to side with the kremlin, questioning findings that russia hacked the 2016 election, attacking u.s. democracy. instead, trump made a belated clarification, undercut his own reversal, and made new comments contradicting u.s. intelligence again, sending his spokeswoman out to deny it happened. we sat down with the 2020 campaign manager to try to get clarity. he helped then-candidate trump run perhaps the most successful media operation in presidential campaign history.

so much that parscale has been elevated to running the entire reelection campaign for 2020. parscale worked closely with facebook, twitter, and google to hone the micro-targeting strategy. one other was one that affected the heart of facebook's data scandal, cambridge analytica. we sat down at a mobile marketing event in sonoma, california to talk about the groundwork he is laying for 2020 amidst concern for russian meddling. mr. parscale: my focus is on the midterms. 2020 holding the house is very important. to get the agenda of the president done so we have a platform for 2020. it's important to hold] all of the seats. what you see from a campaign standpoint is a supportive role. we are taking a supportive role. we have money, options, content

created, things we can do to help. we can help in other ways. that is an important role for us, to be sure that we can do everything for the president's campaign and committee that we can support them and make sure we do everything. emily: what are lessons you learned? mr. parscale: that is a deep question. what is funny in 2016 was i did not have a basis of information. i came in with a clean slate, which was an advantage for me in many ways. emily: you had never run a campaign. mr. parscale: not a presidential campaign. plenty of product campaigns. i had great support. the republican national committee came in. i had jerod kushner side-by-side on a daily basis fighting the battle. he was my boss. eric trump, also, we would

bounce ideas off of one another. i had the best boss in the world, our political director. he was always leading in the right direction. i think what i learned was how important it is to understand data. i knew that going in, but now i know more. to learn to ask questions from those who have had experience doing that even more. i have been doing a considerable amount of reading. i did everything i could to educate myself in everything that has ever happened. this will be a more grinded out long-haul for me as campaign manager. i also believe the president, when he finishes what he is going to do, like getting rid of the unfair balance with china, the tariff problems, if he continues to grow the economy, people's wages increase,

personal economy improves, if he continues to make the world safer, i don't know if it will be a lot of work. i might be at starbucks on election day. emily: will you make that many facebook ads again? this was for super precise micro-targeting. mr. parscale: we'll have to see what the playing field is. some days i wake up and i think facebook, twitter, google, all of them will not play fairly. emily: what do you mean? mr. parscale: they decide they want to make the api harder. right now, facebook, it used to be we could put up an ad in a couple of seconds, now it takes a couple of days. it is hard to put up 5.9 million ads when you cannot use the api automatically. i brought that up as an item i was frustrated with. i said this is a change that is biased towards us.

understanding how our technology works, you created a rule that made it more difficult for us to use that. maybe they do take that away from us. i don't think -- i think right now we have a popular president. he is more popular than he was an election day, the most popular republican president in modern history. i think we will see a successful trump 2020. emily: it is ironic you are frustrated by facebook, given that some people think facebook played a critical role in winning the election. mr. parscale: i have been specific that i think facebook won in a lot of ways. facebook is the .1% that delivered his message. if facebook hadn't existed, it would be tougher. facebook connected the country, people of different backgrounds.

it is doing exactly what it was designed to do, connect us all. facebook is a liberal company. maybe its management isn't, but it has inherited bias. it is based in a place that is probably extremely bias. i can see it talking to you. northern california is not eastern kansas. their employees have bias. it probably goes into everything they do. that is something they have to try to kill. facebook, probably more than all of the companies, is trying to kill it. the question is if they can crush that. i don't know if they can. i think the inherent bias is significant. it is up to me, as someone leading the campaign, to major the companies do everything they can to kill the internal biases and provide an even playing field. emily: what about twitter? mr. parscale: they did not

contact me back from the letter that i sent. i have spoken to mr. dorsey. i feel that company is more torn to revise. the platform itself is not that useful to put out press releases and for the press to figure out what is going on in the country. emily: also ironic considering twitter is the president's megaphone. mr. parscale: as i said, great for press releases. trying to convince someone on twitter of something is like going in a bar and 1:30 a.m. before they turn the lights on and try to sell them something. facebook is more like church on sunday. emily: what are the digital platforms in 2020 that will matter most? mr. parscale: i think that youtube from google will play big role. as we see cable tv move over to internet-based shows, the continued use of watching

content on the internet is a significant change from tv. i think youtube will play a larger role than in 2016. emily: how so? mr. parscale: where eyeballs go. eyeballs are finite. you can only place them so many times. watching facebook four hours this year. next yea, three hours of facebook and one hour of youtube. that changes. i think youtube and google continue to work on that platform. they continue to put a lot of focus and understand the value of that platform. we will watch it closely. we are using it for things now. probably more now than in 2016, even this early out. emily: how will you divide your budget between digital tv and -- mr. parscale: it is too early to make that decision. youtube could blow up.

if it skyrockets, it will change my budget. when i make that decision with the team is the day i will split that up. it could change hour-by-hour as we see the data come in. i hope that google is paying attention to what facebook and twitter is doing. they are probably even more bias. their ceo actually invests time and money into the races. mark zuckerberg has been better at trying to stay less bias with his own personal views. he has a view of what he thinks progressive america is, but he tries not to influence politics so much, where others try to directly influence it. i will be curious if they can keep youtube as an even playing field. now, i think the servers are starting to say they have been shut out of youtube videos. videos are devalued in the

algorithm. the conservative message in america is important. there are a lot of faith-based people in the country. they believe in what that is. i would hope google would not cut any of that out. emily: you have been accused of suppressing the black vote. you hired cambridge analytica. when you look back -- mr. parscale: i have been accused of it, or bloomberg said it? emily: the campaign official, that there were attempts to suppress the black vote. mr. parscale: an anonymous trump campaign official? right? yes. that is not something we did. did we show negative ads? did we have a direct intention to suppress the vote? no. emily: that was our exclusive conversation with president trump's campaign manager. shortly after this, president

trump did say he accepted the conclusion russian meddled in the election, but quickly introduced doubt saying it could be other people also. meantime, top republican lawmakers attacked one of the legal protections most tried by media companies, if google and facebook should be liable for content published by users. they asked why they should be treated differently than hotels, who are responsible for illegal activity on their property. it is one of the most important days on the amazon calendar. it blew through spending records despite a technical glitch. if you like bloomberg news, listen on the bloomberg radio app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪

emily: the uber ceo says the ride-hailing company doesn't need to be profitable before a planned ipo. speaking in aspen, colorado, he said he was more focused on generating positive cash flow than making the company profitable. uber has burned through $10.7 billion since being founded in 2009. shoppers brushed aside technical glitches that marred the beginning of prime day. shoppers spent a record $4.2 billion. that is up 33% from a year ago. the world's largest on-line retailer said it grew at a faster pace than last year despite the website crashing at the beginning of the sale. we caught up with the vice president of prime in seattle on

monday before the glitch broke to ask how they get the right deals in front of the right customers. listen. >> you would be surprised. the launch has been the most successful for any benefit launch. i said at the time we launched, this was the most important since we launched prime video in 2011. the adoption of prime members for benefits and deals, and also the lead up to prime day, has been phenomenal and humbling. members have saved millions of dollars through the purchase of whole foods. prime day for us is a celebration of us. we launched prime day four years ago in 2015, celebrating 20 years of amazon, 10 years of the prime program since the launch in the u.s.

we try to engage as many members as possible to make sure they have a great day, to find the deals they are looking for, and they walk away remembering why prime makes their life so much better. this is a celebratory event, engaging with members, exposing new members to what is still that best shopping deal in history. a unique combination of shopping and entertainment. we get positive feedback, and we continue to try to make it better every year. emily: amazon oficially raised the price of prime. have you seen any reduction in renewal rates as a result? >> customers continue -- most of them start engaging with us through shipping benefits. we see increasingly higher renewal rates as they engage with entertainment benefits like prime video, prime music, and prime photo.

many members start with shopping and will stick around for the entertainment. we continue to be humbled by their response. last year, we added more prime members than any day in history up to that point. we are expecting a big day this year as well. emily: you're raising the stakes. you have cash prizes, a car, deep discounts, shopping. is it working? in what category? >> across all categories. last year we sold more back-to-school supplies than any other day. customers were able to do all of their back-to-school shopping. we are expecting strong engagement across all of our hot categories, including devices. emily: is that voice-based shopping? talk to me about trends about how people are using echo to shop other than just play a song

or answer questions. >> got it. we are seeing customers engage in prime day in a variety of ways. i purchased using my echo devices many times for ordering and for deals. customers can ask, "alexa, what are my prime day deals?" we are trying to make it easy for people to find the phenomenal deals we have. emily: what are you going to do to make sure there are no glitches? how do you make sure it is not like a rummage sale and it really is a cause for celebration? >> what i can tell you is we start planning for prime day the day after the prior prime day ends. we are focused on making sure it is a great event.

they were relatively minor glitches that were resolved quickly, and customers are able to find the deals they want quickly. emily: that was some of my interview with the amazon vice president of prime. coming up, on the verge of transforming the transportation industry with self-driving robot taxis. and after netflix stumbles, should investors be worried? we will discuss. this is bloomberg. ♪

emily: blue origin completed the ninth flight of its new shepherd rocket. jeff bezos is working to fly humans to space for the first time this year. the boosters blasted off from texas shortly after 11:00

eastern and performed a test to ferry passengers to safety in case of an emergency. in the crowded self-driving space, they are standing out by building an autonomous vehicle from the ground up. they plan to make the robotic cars for the ride shares of the future. ashlee: we all make poor life choices. take these two guys, the founder of the self driving car company zoox. they have decided it is smart to compete against this. this is different. the rivals are adding self driving technology to existing cars. zoox is making a new type of vehicle for the self-driving age. they are making a robot.

its early incarnation looks like a love child of the matrix, mad max, and transformers franchise. he hails from australia. down under he was a well-known designer and ad guy. one day he had a vision of the future full of robotics, and came here to build them. >> i saw how the whole system could work. i said, i need to find a brilliant computer scientist. that led me on a six-month journey to find jesse. ashlee: that is dr. jesse levinson. >> i visited google in 2013 to speak on my vision of autonomy. they said one guy was really good, and we can't get him. i said, let's go get him. ashlee: a lot of your colleagues

ran off to companies like google to retrofit cars. what brought you to this approach? >> i've been working on self driving car since 2005. it was clear it would be one of the more transformative technologies. you need a product. you need a business that makes sense. i haven't seen that in any company until i met tim and he shared his high-level vision. ashlee: that is a system of completely autonomous robotic vehicles that can be summoned like a lyft or uber. >> i had a very clear vision. ai will take us out of the age of the automobile into the next age, robotic autonomous transportation. ashlee: tim and jesse take me to the air station where i am about

to get a test drive. >> it is unique vehicle, designed in a way that could only make sense if it will be fully autonomous. dual high batteries, they can drive without any human intervention. do you want to go for a ride? jump in. ashlee: he has put cones on the tarmac. the robot will drive out and try to dodge them. i get to do the test sitting backwards. with one swift keystroke, i give complete control of my life over to ai.

ashlee: that really doesn't get old. it is like being on a ride at disney. the robot cranked through the course at 45 miles per hour. the vh5 is set to rip through at 75 miles an hour. >> dual motors and direction. ashlee: is it madness to take on many of the world's leading automotive and tech companies at the same time? of course it is. what i say, go for it. we all await for the robotic rideshare of the future. emily: you can catch more of "hello world" on bloomberg.com. next, the android market, what is the eu decision against google means against its competitors, smart phone makers, and the android platform. be sure to follow our local news

breaking network on tictoc 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 on android mobile devices pushed google services in front of users, and google was ordered to change the way it puts search and browsers on android smartphones. caroline hyde caught up with the eu commissioner after this decision was made. >> the key takeaway was the force 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 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 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're 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 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. in 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 the contract. can't do this, can't do that. but it is google, and it is their sole responsibility to

make sure that this infringement comes to an effective end. 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 takne no 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 websites 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 ruling. 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 trying to educate or to put their point of view across in the statement saying, today's decision rejects the underlying business model that supports android, which has 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 didn't have to invest in making operating systems themselves. they feel they have added to competition, benefit the consumer. what if, potentially, the change is that there operation system can not 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?

some people feel it has been two years in the making since it was first shown a light on by the eu. they feel 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 fine 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 ceo richard 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 of 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. on thursday, president trump weighed in on the record antitrust fine the eu slapped on google. he tweeted, "i told you 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 grab 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. he was arrested just before boarding a flight to china for downloading proprietary files 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 states, the first things that come to mind are uber and lyft. but in southeast asia, it is a different story. that market is expected to grow to more than $20 billion by 2025.

one of the top names in the space is grab. they first 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 its sites on creating a wechat-like super app. encompassing everything from map, payments, to food delivery. we spoke with their cofounder. >> every year is a new journey. when we first started the company, the initial ambition was to sell space in malaysia. since then, we have grown from strength to strength. emily: 225 cities, eight countries, what is the outlook for future growth? how much bigger can the market be for you? >> we launched grab platform which is our strategy to go into much more. it serves food, logistics, payments, financial services, and we want to become southeast

asia's everyday super app. emily: talk to me about the vision. grocery delivery is one of the new ads? hooi: we launched a partnership with happy fresh. for 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 grab 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 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. and also our news content feed, 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 moderate your strategy is a result of these inquiries right now? it is interesting to have the antitrust agencies say that, 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 on how 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 huge coup getting uber to swap its business. 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 i actually saw him a few days ago. the integrations are going well as well. it all drivers are using our platform and it has been pretty smooth relative to the size of the deal. emily: when they did this with didi, i never quite understood it. how does the communication between you and him work, because grab and uber are still competitors in 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 southeast asia? hooi: it's important to understand southeast asia is a huge market. population-wise, the third-largest in the world. it is larger than north america and the eu. there is a ton of growth opportunities which is why we are moving into a platform play and 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. hooi: what we are doing is like he is a board member and other shareholders, and he is great at it. 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 was started to address safety, and a grab driver was stripped and robbed.

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 connected to local police enforcement. we've also started looking into 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 the grab cofounder. there will likely be more screening for big tex firms reporting. can 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. crutcher 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's disappointing second-quarter report raising big alarm, as shares tumbled. their biggest drop in two years. the results were seen as surprising because of their massive growth, which shows no signs of showing down. but overall, big tech shrug off the news. nasdaq hitting new record tuesday. should there be more caution going into earnings season? 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. and the stock 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 companies, it seems like their earnings season for the other guys coming next week, really the stars have to line up. a lot of caution will be needed here. again, longer-term i would expect that any dip in amazon, in facebook, in google, will be aggressively bought. emily: there is still a question of whether netflix's subscriber miss 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 subscriber numbers. 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 cambridge analytica. even facebook has bounced back. so what should investors be skeptical about?

>> i think there is a fair amount of caution that has been coming with this rally since the facebook scandal erupted. you can see that in the options market. if you look puts calls at the ndx, that is actually much stronger than it is for the sb for example. 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. emily: 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? >> look, those are two stocks -- throw tesla in there, that have never traded based on their valuations. either you believe they will be huge or you don't, and do not care what you are paying. those 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

enormous margins. though they are coming down a little bit, at least google and facebook. some of the tech giants are expensive, but not all of them. emily: you summarize netflix as a religion. showing cracks in the foundation and people are asking questions about it. expound on that. shira: you put tesla and amazon in that religion bucket too. either those are stocks 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. emily: that does it for this edition of "best of bloomberg technology." we will bring you the best on technology and stay on earnings.

tune in each day, 5:00 p.m. new york and 2:00 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. ♪

♪ carol: welcome to "bloomberg businessweek." and carol massar. jason: and i am jason kelly. we're joining you with bloomberg headquarters in new york. carol: coming up in this week's issue, a future with robot taxies. we will introduce you to a pioneering driverless startup. jason: and how best buy is surviving and may be driving in an amazon world. carol: first, we start with a cover story. we will take a look at president trump's trade policies. jason: we look at the applications of the policie