♪ emily: i am emily chang. this is "bloomberg technology." coming up in the next hour, scandals and controversies last year have not affected facebook's bottom line. as the earnings came in below expectations, but the company expects to deliver more than 400,000 cars in 2019. alibaba reported an increase in revenue driven by its china e-commerce business.

how the company shook up trade tensions with a focus on affluent consumers. first to our top story. facebook reporting fourth-quarter revenue that beat estimates. leaving the social network bottom-line unscathed by a series of privacy scandals. facebook gained users in north america and europe after several flat and declining quarters. can the company keep it up? joining us from new york, david kirkpatrick. and michael pervez. these numbers are above better than people thought they would be. what is your take? david: i think there are two parallel stories. the numbers will continue to be great, because advertisers don't have another place to go. it doesn't mean there is not a separate story that is still

quite unattractive about their inability to govern their systems properly. i think it is telling that just today, there was another story of a privacy problem in the way they are handling their apps. it is a weird yin and yang thing. facebook as a spectacular business. in many ways, the best business that anyone could imagine. emily: to give more detail, what happened is that facebook had a research app that it was paying users to use, including teenagers, in exchange for their data. apple has said this violated the terms of service for this particular app. they have revoked facebook's enterprise certificate, which means facebook can't use its internal ios apps. employees, we have heard, are panicking, because they can't get any work done.

cloud. michael: this company has all sorts of dark clouds. the dark clouds don't look like they will be going away anytime. the earnings we discussed confirmed that this machine is still working well. that gets to a broader discussion about the tech sector and where people want to be positioned in the markets. facebook as a microcosm of these tailwinds about consumer disengagement from these monopoly platforms, as the earnings have been showing, you're not really seeing these business models breaking down yet. emily: facebook is saying there was nothing secret about this app. it was called the facebook research app. when i tweeted that i was going to be sitting down with sheryl sandberg, i got a lot of anger responses.

people saying they are collecting data from children? paying children to give facebook their data? david, do you have a sense that revenue could be a lagging indicator for public perception? david: that is an interesting way to ask the question. the key question is when advertisers get annoyed and stop paying for advertisements and that hasn't happened. facebook really does have a values problem and a judgment problem, which unfortunately, was manifested again today in this story about the way they were surveying people and violating apple's terms by doing so. i am afraid we are likely to see more stories that are very unflattering to the company, because unfortunately, all the evidence is that the company has some judgment issues that pervade its culture. they really haven't built a culture that is sufficiently protective of people's privacy and respectful of users.

i am surprised by that and i don't really know what to expect long-term, because it is really unattractive. there have been so many negative stories about how this company has handled data about their users and failed to protect them. not to mention all of the governance issues and fake news and hate speech and genocide. these are bad stories. they are a giant platform with a huge impact on society, but it doesn't seem to me they know how to manage their platform, considering its scale. emily: reading some reaction, it is hard to get people to stop using something they love. people love these products and a massive attacks the news outlets keep on them, despite consumers like these platforms and advertisers follow eyeballs. michael, would you agree? michael: i think what he has

been pointing out is that advertisers may not have another place to go. right now, the consumers are not finding another place to go. that can obviously change. one of the questions that david is raising is the values question. that is, what happens to these incredibly compelling 40% net income margins if their values change? is there an economic trade-off for that and will be start seeing some of the revenue composition going forward? is that the highest margin revenue they would have been getting? that is what analysts have to figure out. emily: facebook is currently being investigated by the ftc. they can expect a record fine there. the irish data protection authority also investigating. i wonder if even regulation will

have any impact on the numbers. david: regulation could have serious impact on the numbers. for example, i was at the davos and in europe and asia. there are people who would love to split up these products. instagram, whatsapp, facebook messenger, possibly as a punitive thing. i'm not saying that's going to happen but it will be pushed by some officials and some countries. possibly even the united states. if that were to happen, that would be a negative for the stock. term.st in the short who knows what it would mean. it is an unexpected and unknown landscape. what michael said before, margins are coming down as they try to govern the system more effectively. they are spending more and more money to try to remediate some of the oversight that they have allowed to occur. i absolutely believe we will never again see the margins we saw a year ago. emily: right.

they have been investing heavily and a lot of that has gone towards hiring tens of thousands of people to tackle these security issues. fake news issues. michael, when you look ahead, where do you see a new growth coming from? do you see budgets moving away from facebook to instagram and other products, or are they just going to keep going up? michael: i want to clarify that i am a macro strategist. i look at the sector. i am not a facebook analyst. i want to make sure the viewers understand that. i don't really have a view on where the growth is coming from, but i would, if i may weave into this discussion, if you look at the relative volatility for the tech sector, that had been at a

real premium since cambridge analytica and that tends to spike into earnings seasons. it did not do that this time and this concept of the market adjusting to these risks, that has been a nine-month process that we are largely through. obviously, valuation is more compelling than it was last march or so. emily: facebook's earnings call is underway. ceo mark zuckerberg is speaking. we'll give you the developments as they roll in. as always, thank you both for joining us. stick with us tonight. i will be sitting down with facebook coo sheryl sandberg to talk about this coming up. also, tesla's fourth-quarter numbers are in and it is a miss for etf's. just how did the car maker fair overall? we will discuss. if you like bloomberg news, check us out on the radio, the bloomberg app. this is bloomberg. ♪

emily: tesla shares fell in the start of after hours training. the electric carmaker reported estimates that fell below wall street. tesla announced it would restructure in the first quarter to cut annual costs by $400 million. to discuss in new york, and in san francisco. break it down. >> this earnings report was not a huge surprise. elon musk had signaled to everyone when he announced layoffs that they were expecting

a smaller profit in the fourth quarter than the third and that is what they developed. they missed on eps. they still have cash, can pay off their debt. shares have bounced around a little but were fairly flat, last i checked. emily: the big question is sustainability. despite a lot of challenges, tesla had a record year last year. what are you expecting when it comes to production and delivery and demand? >> for demand, we have seen the model three come through in surprising ways. it is the top selling sedan in the u.s. for the second quarter. in the u.s., we saw demand come in strong. they are just starting deliveries in china and europe, so i think we can expect similarly positive picture there. in terms of production, there is too much focus on production and delivery figures for a company that is ramping, like tesla.

we are looking to the future, king to tesla as an autonomous mobility company. if they miss production figures by a month or a few weeks, that doesn't bother us, because we are looking to the long-term. we think they could launch an autonomous service and that is the most important market opportunity ahead of it. emily: elon musk himself has spoken a lot on production. he has said the model three would take tesla through production hell. that said, we know the company is not going to necessarily keep up the production levels of last year. they have laid off 7% of the workforce trying to restructure. how will that redistribute workflow? dana: it is interesting. the shareholder letter says they are helping to reach a sustained production rate of 7000 model

threes a week by the end of 2019. in august of 2017, he said you should have no concerns that we were each 10,000 a week by the end of this year. they are walking back their original production targets. they are trying to manage demand. this is a company that builds to order. they try not to carry a lot of inventory. with the tax credit cutting down and they didn't want to have cars sitting around. it is smart but they are trying to do. emily: tesla has broken ground on the factory in shanghai. how optimistic are you about tesla's future in china in the midst of the trade tensions? tasha: we have actually seen a lot of positive activity in the auto space in china. we saw the relaxation of the 50-50 joint venture rule, allowing tesla to enter the market without a local partner. we think they still will have local partners for supply. that rule relaxation seems uniquely beneficial to tesla. we have heard musk say he has had good talks with local officials.

he has complimented them on their science prowess. we think that is the largest market for autonomous driving. it is strategic for tesla and we are excited to see what goes on there. emily: we haven't gotten an update on autopilot in a while. what are we hoping to hear on the call today, which starts in about 15 minutes? dana: there wasn't much on autopilot in the shareholder letter. in the call, i imagine people will ask about it. when is tesla going to demonstrate this autonomous cross-country drive? you see, they had the whole team on the call. i'm not sure people are expecting that this time. there is a sense tesla has fallen behind competitors when it comes to getting to market with an offering that consumers will feel comfortable in. emily: clearly, the model three

and tesla is far ahead in terms of electric cars, but you do have competitors coming to market. sales will likely be small this first year, but will grow. how much does tesla have to worry about the competition, whether it is audi, porsche? tasha: first, on an autopilot front, i think tesla's navigate on autopilot feature shows that it is competing with companies like waymo. they are coming from a different approach, testing on suburban roads as opposed to tesla on highways. that feature, in terms of getting on and off the highway is a problem that many teams have had trouble with. on the battery front, we hear that tesla will account for 50% of global battery production by the end of this year. when we think about competition,

it will have to get to scale in that takes years. tesla already has that scale and they have a technology advantage. we just heard the north american ceo of toyota say that tesla is affecting prius sales and creating a new category of vehicle. a technology driven car. that comes with over the air updates. things that competitors just don't have. emily: dana, it is obviously a tough year for tesla. elon musk was fined by the fcc. we brought on independent directors, we don't how independent they are. larry ellison has joined the board. elon musk has been fairly quiet. is there a sense that the governance and leadership issues have stabilized? dana: i think that 2018 was such a dramatic year, between the

autopilot fatality, the sec investigation, the go private bid. tesla was in the news nonstop and everybody at the company is just ready to focus on execution and stay out of the limelight. the letter was a bit conservative in terms of guidance. there were not any pie-in-the-sky predictions. he didn't hear anything like we will unveil the model y in march. it was a conservative letter and it will be interesting to see the tenor of the call. probably a bit more conservative. emily: after a flurry of tweets, elon hasn't treated since the q4 investor letter. quite on the tweet front. dana hull from bloomberg, and tasha keeney, thank you both. coming up, we continue earnings coverage with microsoft. will cloud demand for its title of world's most viable company at risk? and we continue to monitor the facebook earnings call. the company sees the opportunity for instagram e-commerce as healthy but has to partner with others and establish a payment gateway before that can scale up.

we will continue to follow that call throughout the hour. this is bloomberg. ♪

emily: microsoft reported revenue for the second quarter in line with wall street estimates. the company said revenue increased 12% with $9 billion coming from its commercial cloud business after weeks of act and forth with amazon for the title of world's most viable company. our senior analyst joins us from new york to discuss. what are your takeaways from this report? >> last time we talked about, in the last quarter, microsoft increase revenue and we said it will be difficult for them to do something like this going forward. 13% is very decent in our view, but compared to the previous quarter, a slowdown in growth. emily: what about these cloud

concerns, why is that happening? anurag: in our view, it is not the cloud numbers driving the stock. it is really the pc numbers that were weaker than anticipated. there was some news that there was a chip shortage that led them to see less than favorable pc shipments. we will hear about it more when the conference call starts in 10 minutes. emily: that said, the cloud is the future for microsoft, and we are waiting for this big, potentially huge contract to come down for one or the other, or perhaps for another company. do you think that that can change the hierarchy here dramatically?

anurag: as far as cloud is concerend for amazon and microsoft, i think there is enough for the next several years to come. spending is still low. cloud is give or take $200 million spending, which is $2 trillion. that is a small portion of total tech spending, so through the next decade, there is enough money for both of these companies. as far as the government contract goes, it is interesting to see which one finally gets it. so far, as you mentioned, amazon has been the number one player for a while. we would say that microsoft is very close behind. emily: the big question is, will microsoft hang onto the title of world's most valuable company? anurag: that is difficult to say. that is a function of markets cap. if you look at the business, we think microsoft in a certain way is better positioned than some other companies, because it has huge huge presence on premise software and on the cloud. so it has the best of both

worlds. emily: bloomberg intelligence senior analyst, thank you so much for weighing in. coming up, alibaba posted strong third-quarter earnings results. many other chinese companies fell short. is it getting through china's slowing economy unscathed? we will continue to monitor facebook's earnings call. here is mark zuckerberg on the massive changes underway at the social network. >> shall we build services to focus on preventing harm? we invested billions of dollars in security, which has affected profitability. we're taken steps to increase engagement in whatsapp and reduce viral videos more than $50 million a day to improve well-being. we have made significant progress and we are going to continue this work, but we're also going to allocate more energy to building new and inspiring ways to help people connect. ♪

>> this is bloomberg technology global link where we join daybreak: australia to bring you the latest in global tech news. i am emily chang in menlo park. let's take a look at the top global tech stories of the day. >> pinterest has selected goldman sachs and jpmorgan's chief to lead its ipo. the company could raise 1.5 billion dollars in a public offering that could take place in the first half of the year. interest is a size where users post and look for pictures that interest them. second thoughts about the 10

billion factory foxconn is building in the u.s. apples's main manufacturing partner may scale back or abandoned lands to make cutting-edge tv screens in wisconsin. that could undermine promises to create 13,000 jobs there. president trump hill the project for bringing jobs back to america. facebook reported revenue that beat wall street estimates, showing the largest social media companies advertising business is weathering scrutiny over private scandals. were $16.91s billion and the number of daily users climbed 9% in the period. those are the top global tech stories today. rose afteraba shares they reported third-quarter results that beat expectations. after 20spot for china companies warned full-year earnings would miss estimates amid a wider slowdown.

to discuss, kevin carter of emqq, which invests in e-commerce in asia. how did alibaba avoided the macro economic catastrophe that has impacted everyone else? kevin: catastrophe would be putting it strongly. the macro economic picture looks good. growth has been slowing for a decade and will continue to slow, but there has been a lot of can turn about the consumer side of things and we have had to number of u.s. companies theypoint so the reason did well is the same reason they have carried this is a secular story. billions of new consumers in china that are getting a cheap smartphone and getting online for the first time and doing different things in an online way. emily: -- they beatough expectations, the december

quarter is meant to be a mammoth one for valley, -- alibaba traditionally and you had sales as low as -- slow as 2016. peak we are seeing? kevin: i don't think it is the peak. overall revenue growth was north of 40%, the cloud business had been growing at 100% for a while and is growing at 80 something percent. i think a lot of adjectives get thatfor china and alibaba twist the growth numbers into somehow being disappointing, and perhaps some of them are from time to time relative to expectations, but these are incredible growth numbers. 83% for a billion-dollar line of revenue topline growth and 41% overall? for the size of this company, that growth is quite strong.

haidi: and very welcome by investors after about 20 china related companies issuing profit warnings. how much do you look at the macro situation, the structural slowdown in china? impactful factors for businesses like alibaba? kevin: the trade war itself, if sorghum, it is about manufactured goods, steel. the emerging markets internet story, the alibaba story, this is about 85% of the world's consumers doing things as digital natives, whether hailing a ride on their phone or watching a ball he would movie in their bunk at night -- night, thoseie at things will not be affected by the trade war. if the economic picture gets darker in china, perhaps people won't tail a ride.

they will walk, but for the most part, the sector should be pretty insulated from the trade war, though the sentiment has weighed heavily on stocks. emily: let's talk about what won't be affected by the trade war's. talks are ongoing, but the u.s. has taken an aggressive stance toward huawei, filing formal charges. are you expecting negative consequences elsewhere? kevin: of all the things, whether the trade war or the general idea that the chinese consumer is starting to get sluggish, it is the huawei situation that i personally find the most troubling. this company makes the leading hardware for the cell carriers and certainly for 5g. i am troubled by the whole thing. there were some elements of the

indictments that came back -- out with the robotic arm, punching away at the phones and an engineer trying to swipe one of the phones in his gym bag. i'm troubled by this story, and i'm troubled by the idea that huawei is getting boxed out of selling their hardware around the world. it seems like most of the telecom providers want the hardware. so i -- of the three things, the huawei situation is the one i've most unsettled by presently. haidi: china and u.s. markets have talked about expanding markets internationally, are we expecting them to move further away from that asset light model, particularly in asia? kevin: the 60% or more of the world's people who are in that circle of the world between china, india, indonesia, and i think it is easier for alibaba and some of the other chinese companies to transition into those markets.

i'm a little more wary about the ability for alibaba and others to do things in the u.s. and europe and so forth. in terms of the asset light model, one of the things we are seeing in the alibaba story, and we talked about this last time i was here, the digitizer nation n of the entire chinese economy. to the extent that the company -- alibaba and tencent continue to expand into the online and off-line world, by definition those will be more asset heavy businesses, but relative to most industries, alibaba will always be an asset light business model. emily: kevin carter, founder of

emqq we have much more ahead. i will sit down with sheryl sandberg to talk about the earnings report and much, much more. this is bloomberg. ♪

emily: following apple's not as bad as people feared earnings report, the stock jumped to the highest level in more than a month. they took the third spot behind amazon and third-place microsoft. has apple turned a corner? jim, has apple turned a corner? >> we think the corner turned so far is resetting expectations. it has not turned the corner on great innovation right now, but resetting expectations. the worst is now behind us. that is why you saw the stock rally today, the worst is behind

us. it was not as bad as feared. emily: what about china? that looked pretty disappointing, revenue down 27%, $5 billion worth of sales gone? jim: yeah, that was a big shock. they did preannounce negative in early january, around january 3, and they did cite foreign-exchange in china. to give you a few more numbers, china used to represent 20% of sales of apple. now, we are here sitting today after that big decline, at 15% of sales. china is still important, but what we have seen is the more developed countries such as north america and other places in europe showing strength. what it really comes down to get to your question about first turning the corner, apple has got to innovate and innovate hard and that is what we are looking forward to in the quarters ahead. emily: do you think that innovation will happen?

jim: well, they are definitely spending the money. if you break down the operating expenses, they are increasing the research and development and decreasing the amount spent on salespeople. salespeople are tied to the number of phone sales or closing of deals. n r&d.e increase i i doubt it is just to look at or justautiful facility watching the green trees grow on their earth friendly area sites, it has to be for some new products coming out. that being said, here's the timeline on what we look forward to. first, the worldwide developer conference they host in june, they will talk about various things there. following that in september, the iphone launch. we are expecting three new iphones coming out. we certainly hope it is a lot more than just additional cameras on the phones. with them spending the amount of hopehey are, you've got to

it materializes into more innovation. emily: tim cook himself has said that people are holding on to their iphones longer. that means the better the iphone is, the longer it lasts, the worse it is for apple. of course, they have been talking about transitioning to a services company, but do you see apple as a services company and not a hardware company in the future? jim: emily, two very smart questions you just asked. first of all, on the lengthening iphones. yes, they are lasting longer. they are waterproof now. the screen quality is better now with gorilla glass in them. it makes it so when you drop your phone in the sink or on the sidewalk, it doesn't break as much. that means people will have their phone longer. now ethically, the best thing to do is build the best phone for consumers and that's what apple is doing. in essence, it is kind of hurting itself because people are holding onto products longer, but it is the right

thing to do. they need to innovate with some new features. regarding the other part of the question, it is important to note the way we think about things going forward is that layout at the worldwide developer conference in june, followed by the new phone launches in september. right now, expectations have been reset lower. the company also did under by -- under buy its normal amount of stock buybacks, and simply put, the stock is cheap. trading at 10 times earnings is very cheap for a company of this caliber. emily: well, it wasn't long ago that apple hit that trillion dollars market cap, and now it is in third place. citigroup's jim silva, as always, thank you for stopping by. it has been a busy day. qualcomm gave a sales forecast in line with estimates, signaling the move to next-generation 5g wireless systems, helping to offset declining smartphone demand. we talked to qualcomm executives earlier. he joins us now from san francisco. what did the executives from

qualcomm have to say? >> basically qualcomm did much better than expected. there were two things investors were looking for. one was, what does it mean that qualcomm is not getting this revenue from apple and has these disputes? are there any updates on those disputes? qualcomm executives said there are not. basically what they have said about apple is, it is still true now. however, they said they expect that within 2019 will be some sort of resolution with apple on the question of whether to pay these massive amounts of licensing fees. steve mollenkopf said whether it is through negotiated settlement that they have with apple outside of court or whether through litigation, there will be some sort of resolution. then there was the question of what would happen to demand for qualcomm chips based on devices? that is particularly true in china where there has been in

-- an economic slowdown since 2009, meaning there has been a lot of concern about whether consumers will continue to buy smart phones. steve mollenkopf said that so far it looks like the question of the smartphones in china was a calendar 2018 story, and that he expects smartphone demand will go up by perhaps 1%, that china will be stable for this year, so it does seem like qualcomm expects the worst is behind them on that front. emily: interesting. that would ironically be good news for apple and every other smart phone maker. we'll see. it looks like the headlines coming out from the call, they said licensing is doing well in china. qualcomm for years has been trying to push this oig -- 5g story. we don't know when 5g will truly hit the mainstream. any updates on when they expect

that to add significantly to the bottom line? nico: absolutely. so, steve mollenkopf said the 5g rollout will start in the first half of 2019. qualcomm executives also said that they expect the 20 or so devices that have 5g will mostly be powered by qualcomm chips. they are seeing a lot, particularly in china, where there are many smart phone makers that are developing 5g devices. the issue for qualcomm is that most of its profit comes from licensing. so even if sales are doing well because of 5g chips, and qualcomm executives reiterated that it is basically the high-end devices where they are seeing the most strength for 2019, and on the lower in, -- lower end, there's a lot more competition in china and elsewhere. but good news on the licensing front for china, because qualcomm said it has been signing new deals with chinese

oem phone makers and compliance with those licensing revenue agreements is doing a lot better than some had feared. there was a particular update on qualcomm's dispute with huawei, which is one of the world's biggest phone makers. had stoppedhuawei paying, but will start paying again under the interim agreement. they will pay 150 with the nose a quarter for the next three quarters, up from $100 million until they come up with some sort of final solution on how much huawei should pay for licensing qualcomm's patents. emily: so it's a huge part of qualcomm's business that is under threat. not just because of apples, but because of huawei. nico grant, thank you so much for that update. coming up, we will return to facebook's earning results. speaking on the call, mark

zuckerberg had this to say about encryption. >> people really value the privacy that encrypted messaging brings. we build the most secure messaging service in the world. as people increasingly share more privately, we are working on making more of our products encrypted by default so your -- and making more of our products ephemeral so your information does not stick around for ever. ♪

>> in instagram, one of the areas i'm excited about this year is commerce and shopping. we expect to deliver qualitatively new experiences around that. emily: mark zuckerberg moments ago on the facebook earnings call. i want to bring in bloomberg tech's sarah, interesting reading the headlines from the call. the big news seems to be that

revenue growth is going to slow down this year, in part because of continued investment by the company, spending will go up 40%-50%. in fact, he had to jump in a few times to remind analysts and investors that revenue growth would be slowing down. what is your take? sarah: facebook basically came out with better numbers than people expected for their advertising business. i think what he was doing there was he is trying to tamp down a little bit of the excitement, basically analysts and investors now are thinking that facebook has weathered all the storms and the criticism, but you look at the rest of 2019 and there are few factors contribute to challenges for facebook. you have the slowdown in the main app's growth. he said they would stop reporting numbers for that growth and they would just before numbers for the overall business.

you have scrutiny from regulators, but so far, it is still one of the powerhouses. facebook and google are basically the only places you can buy global advertising that has the level of return on investment that advertisers are looking for. really, it hasn't -- the scrutiny has not come to hurt their business yet. emily: facebook shares spiking after hours, up 12%, which is potentially a big step toward recovering some of the massive losses they have seen over the last year. one of the interesting numbers, that i pulled out was when you look at daily active users in north america, they actually tick up in europe. was that a surprise? sarah: i think that was surprising because facebook had warned us that those markets and gotten to a saturation point, that there would not be that much more growth there for their main advertisers, but we have seen that the company is investing in new areas like messenger and instagram, and

whatsapp, and they may still be able to draw in a lot more attention in those new markets. i think it is interesting to look at what zuckerberg says about how the future of the business is going to look. he did talk about merging the back end for messenger and instagram and whatsapp so that people are able to send messages app to app and he underscored that this is about giving people a way to send messages that are end to end encrypted. he seems very excited about the idea of messaging that even facebook cannot see. that will be interesting to see how it develops. he said that will be more of a 2020 project and they are working on it hard this year, but you will not see results until then. emily: meantime, a cloud continues to hang over facebook right now. this facebook research app that facebook had been paying users for their data, including teenagers. apple has said it violates their

agreement and they have revoked key app development tools for facebook. so that at is off ios but it also means facebook employees cannot use some of their internal ios apps. what update has facebook given about this? sarah: i don't think investors recognize how big a deal this is if you are a facebook employee -- employee. you cannot use any beta versions of the apps. versions of beta facebook, instagram, and whatsapp. and you cannot use any of the internal tools for using the transit system or booking conference rooms. they have apps for all of those things. facebook is negotiating with apple to come to some sort of agreement over this, but there's really no visibility into whether they will be able to do that. emily: any discussion about regulation and how that would impact the business?

any questions about that from analysts? sarah: a little bit, but mostly they are focused on the new business areas. it is really interesting how little a lot of that scrutiny has impacted the stock price and the company at large. there was one question about whether any of the critical news reports in the past few months have led to user deletions. the facebook cfo said the numbers basically should speak for themselves, that users still very much like using facebook. emily: to that point, sheryl sandberg on the call just now being asked about growth in messenger and whatsapp. she said there focused on user growth in facebook messenger with whatsapp. it's early days. the bottom line is, big numbers for facebook despite all the controversies. thanks for keeping us honest. thank you all for watching this edition of "bloomberg technology." in the next hour, i will sit

down with facebook ceo sheryl sandberg to talk about the latest results and some very important existential questions as well, coming up. this is bloomberg. ♪ place, the xfinity xfi gateway.

and it's strengthened by xfi pods, which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today.

>> the following is a paid program. the views and opinions expressed not reflect those of bloomberg lp, its affiliates, or employees. the following is a case presentation for lifelock with norton, paid for by lifelock. >> look around. so many of us are on hours -- phones and laptops. out formsfi, filling and applications. livethe connected world we in, our information is everywhere. we enter our names, birthdays, passwords, social security numbers all online.