emily: i'm emily chang in san francisco and this is "bloomberg technology." shares of lyft hit an all-time low just weeks after making its public debut. does this signal more risk for other ipos coming to market? it has been a massive legal fight spanning the globe for years. now, apple and qualcomm will argue their cases in court where tim cook is expected to testify. with the deadline with the sec closing in, elon musk continues to tweak more details.

he says the carmaker will make ver 500,000 in the next 12 months. to our top story, lyft shares hit an all-time low. the stock is now declined in seven of its 12 trading days since going public last month, falling as much as 22% below its ipo price. this after rival uber filed for its own ipo last week. could the start be a warning to other unicorns headed to the public market? in florida, university of florida finance professor jay ritter. you have been looking at some on large ipos and how they perform. how does lyft compare? jay: with big companies like lyft, sometimes they go up for six months, sometimes they go down. those that drop a lot during the

first six months on average outperform those that went up during the first six months. most famously, facebook dropped by over half after it went public, before it went on a tear. there's no guarantee that will happen with lyft but i see no reason to hit the panic button. emily: facebook was a very individual case though. there was a technical glitch with the nasdaq. what does lyft have in common with some of these other ipos that go up and down? jay: the common denominator is not trading glitches. it is big uncertainties about their future profitability. with lyft and uber omma a there's a huge amount of uncertainty about how big the market is going to be once autonomous vehicles take over,

how long that's going to take. what the profit margins are going to be. i'm predicting that there will be a merger. lyft might merge with uber. lyft might merge with -- who knows, alphabet might spin off waymo. what the terms of the merger will be will be a big question mark. emily: that is something i have not heard before. i would assume they would have to get over some animosities between the companies. with uber filing to go public last week, how does what is happening with lyft affect uber? >> it will be unpredictable and so many ways. but i will go ahead anyway. with the specter hanging over all of these ipos right now, to some extent, is snap. if you don't perform well in your first six months, it

doesn't necessarily predict what happens next. snap went public at $17 a share in 2017, and it took to last december to bottom out at about five dollars a share. there could be a decline ahead. i think, for uber and for lyft, what happens now, uber must be watching very carefully every move from lyft. lyft has been beset by short-sellers now. the short-sellers are the ones making the profits at the moment, at least on the trade. emily: snap has increased over the last several months but it is still below its initial price. so, looking forward, we've got pinterest potentially coming this week, uber coming in the next couple of weeks, then i few more after that.

potentially slack in june or july. how would you expect the market dynamics we are seeing now to impact these coming ipos? jay: i think a lot of these will be valued based on the company's prospects. lyft is in a very different business than pinterest or snap. lyft is not dependent on advertising revenue or the number of users. lyft can determine the number of users with its pricing policy. they can buy market share by incurring some short-term losses. i think it is a very good strategy for them to buy market share to improve their position.

emily: pinterest has been at this roadshow. we are expecting them to go public this week. how do they fit within this stampede? michael: pinterest is one of those long-standing companies which has sat on its private status for a long time. it is very much a more old-school advertising finance model. to a certain extent, at least. so, it is a second-tier compared to uber and lyft. it continues to draw on this enthusiasm for -- we will see if it continues to draw on this enthusiasm for ipos in general or if it gets lost in the shuffle. emily: once pinterest happens, once uber happens, what happens after that? is that the cresting of this wave? will slack just be another part of this? michael: almost by definition,

it is going to be a crest. there are still lots of interesting companies lined up, select being one. palantir, palatine. i think the one to really watch for is airbnb in the long run. at that point, there will be so much money that has gone into these tech related ipos. then again, airbnb has a very viable model in is a very well-known brand. i think that will be the one that keeps the ball rolling or shows that it is coming to a close perhaps, depending on what happens. emily: lots of work for you. thank you both so much for stopping by. soon after a devastating fire engulfed notre dame cathedral in

paris on monday, news outlets began streaming live broadcasts on youtube. that led to several clips including a box of text. they included a text box feature to combat conspiracy theories. the software mistakenly labeled the plumes of smoke in paris as footage from 2001. in a statement, a youtube spokesperson said, "these panels are triggered algorithmically and sometimes we make the wrong call. we are disabling these panels for live streams related to the fire. coming up, the apple and qualcomm showdown continues in court. the latest, next. if you like bloomberg news, check us out on the radio, the bloomberg app, and in the u.s., on sirius xm. this is bloomberg. ♪

emily: apple and qualcomm have spent over two years fighting over patent licensing around the globe. they are headed to court again. a federal jury will decide if qualcomm engaged in breaking licensing practices and whether apple had the rights to stop paying royalties. the trial could last as long as five weeks. joining us to discuss, the vice president of oceanic ventures, who focuses on -- he is an equity analyst focused on the impacts of tech losses on the financial markets.

set the stage for us. what is next? >> we are likely to get the opening statement as early as today but this is the main event. this is what we have been waiting on for a few years. qualcomm will figure out whether it can force apple to do what it should have done, which is get paid, and we are talking probably $7 billion or more at this point. we will have a jury decide whether apple is right, whether qualcomm has been illegally forcing people to pay these illegal licensing fees. emily: we've seen apple have the upper hand, we've seen qualcomm have the upper hand. we have seen different courts around the world ruled in each other's favor. who has the upper hand now? matt: when you're going to a jury about patent licensing, antitrust questions, it is a

five-week week trial on things that can be pretty dry. i think that qualcomm has a slight upper hand but apple has some strong arguments. apple is facing some pressure from regulators and a licensing drought. the overall dispute has taken a toll on qualcomm's business but i think the licensing business will prevail, it's just a question of when. emily: we are expecting apple ceo tim cook and qualcomm ceo tim malik off, to testify. ian: this is in front of a jury, which takes it to a different level. possibly more theatrics, the damage that has been done, an appeal to the sympathy vote, if you like, of the jury, and what is a very dry topic. ultimately, these are two very rich companies. obviously one is richer than the

other but it will not bankrupt either one of them. ultimately, the arguments will have to boil down to how powerful they can make technical, legal technology arguments. emily: qualcomm is based in san diego but apple is the biggest company in the world and tim cook is a very recognizable person. how do we expect that to sway the jury? matt: qualcomm definitely a hometown hero. the stadium named after qualcomm. they changed the name now but there is still goodwill. potential jurors, some people love apple and own stock. some have friends who work at qualcomm and appreciate the technology. i think qualcomm will definitely try to take advantage of that hometown goodwill and illustrate themselves as an innovator that deserves to be paid. we are talking less than $10 per iphone.

when you are looking at the era of a $1000 smartphone, it is not that unreasonable. emily: i sat down with steve mollenkopf and he said something that surprised me. he said he still expects to work with apple after this. >> i think there is no better opportunity and partner for qualcomm and to work with apple. it makes sense that the technology leader in mobile be partnered with the product leader in mobile. the way we think about the business, eventually you get the disputes figured out and head into a different period. i hope to be in that period schedule we the have already laid out. emily: what are the chances of those two companies working together after this bitterness? ian: you would be surprised. so many times, we see these knock-down, drag out fights. samsung, for example,

and all of a sudden you see in an iphone. particularly in this case, these are two companies that kind of really need each other. what qualcomm is good at is what apple will maybe next year or the year after neat if suppliers can't close that gap with qualcomm. that's part of what is going on here. emily: is this showdown preventing apple from moving to 5g? the technology for 5g if it wants to move to 5g? matt: qualcomm is the leader in terms of developing 5g enabled chips in the u.s.. there was the drama about the central broadcom takeover over the concern that they are in the league of research and development. implementationhe of 5g?

i think if you asked a network person, they would say that 5g now is maybe a false 5g so we have a generation or two of iphone before it is really impactful. ian: it is a bet that apple have made before and successfully. they were slow to 3g and slow to 4g but it didn't matter because the networks didn't come in quick enough for the other competitors to cause them pain. this is arguably the bet they're this time as well. emily: you will keep us posted. thank you so much for stopping by. meantime, foxconn has confirmed that it will begin mass production of the iphone in india this year. the foxconn chair says india's prime minister has invited him as taiwanese company is expanding in the company. inle has produced old phones bangalore for years. it will now expand manufacturing to more recent models. this as india has become the fastest growing smartphone market in the world. coming up, consumers will finally be able to buy samsung's

foldable phone and we got a sneak peek. check us out on twitter @technology. this is bloomberg . ♪

emily: the european union is taking a closer look at google's tax arrangement in ireland. they want to know how they use operations there to reduce tax obligations within the eu. it is one of samsung's boldest devices to date. earlier this year, the company unveiled the galaxy fold phone which could be a phone or a tablet, with a price tag of nearly $2000. our own mark gurman got his hands on the device for a closer look. mark: remember when samsung launched giant smartphones and

there was a group who thought it was a gimmick? sampson hopes this will happen again and it will also turn mainstream. this is a foldable phone, you can run three applications at once. the user interface is fairly intuitive. it is not as consistent as i would like when flowing between the smaller screen outside the phone and the bigger screen when you open it. it should get better over time as samsung continues to invest. it is the size of an ipad many. it has a fingerprint scanner like the phone. this one goes on sale at the end of april in the u.s. there's a silver, a dark gray, a black color, a green color which almost looks gold. business users will probably like this for the multitasking.

you can pin three applications next to this at once. you can be watching a video while looking at your calendar and taking notes. the $2000 question is, will people really want to buy these things? i'm mark gurman for bloomberg news in new york. emily: huawei's chief representative to the european union says that it is not fair. this comes as some look to block access to 5g networks. >> they put the hat over our head as a chinese fire these kinds of things. it is not fair. the trust has to be based on the facts. this has to be based on common

industrial standards. that is how huawei -- in the environment, one of the success factors for huawei is based on this globalized nondiscrimination environment. we've been working very closely with different operators in german markets. we have a lot of ongoing collaboration with samsung and other operators. when you talk about 5g cybersecurity, in this topic,

germany has made a very good example with what is the right direction to go to address this kind of cybersecurity concept. it is very important. we all agree that this is an important part in this has to be based on a faith network. how to solve this problem, how to address this kind of concept from stakeholders, i think germany has to set a benchmark or a kind of example. the u.s. has been talking to us, there is reputation damage to huawei. someone has said it is kind of a big advertisement to huawei.

the first two months of huawei business, revenue has been increased by 30%. at the beginning of the year, our annual budget has only increased due to the huge advertisement by the u.s., talk about huawei, talk about 5g. how revenue has increased. many people begin to notice huawei. continuously repeated by the u.s. vice president, president, secretary of state. what they are talking about, cybersecurity. they notice that this phone is

so nice, there are a lot of nice features. i think credit was built -- a reputation has been built in the past tens of years, a political allegation can damage. for now, we are still confident in our future business development. emily: that was huawei's chief representative to the european union, abraham liu. coming, tesla output for the next 12 months. what this could mean for the company and his relationship with u.s. regulators. later, there are now 486 electric vehicle manufacturers registered in china, more than triple from a year ago.

in e learning about demand the region next. is this bloomberg. ♪

this is bloomberg. emily: this is "bloomberg technology." i'm emily chang in san francisco. well, elon musk has already been warned about his twitter use, but that has not stopped him so far. he tweeted another production forecast. he wrote the company will roll out half a billion cars over the next year. a similar tweet led the sec to say that he was in contempt of a settlement reached. joining us is craig trudell who covers tesla. what exactly happened this time? craig: this is very similar to a post he sent in february. in that post, he said the

company was going to build about 500,000 cars this year. around that time, the in-house securities lawyer at tesla who was sort of named to a position or hired as a result of a settlement to the sec reached out to musk and worked with him to quickly send out a follow-up tweet to clean that first one up because it was sort of inconsistent with past statements. there is a little bit of a deeper story where musk contradicted a written statement on an earnings call. in any case, they try to clean it up. the sec took notice and reached out to musk's lawyers. we find ourselves in this contempt of court fight. for musk to send this tweet over the weekend, it was very reminiscent of it. some context clues. it did not look like a sort of post that was run by a lawyer.

it was in passing and made in a reply to some person on twitter. so, it definitely sort of read as though musk was doing something very similar, casually talking about how many cars tesla is going to make. the sec has argued that is material information and something he is supposed to get cleared with a lawyer within tesla. emily: there is no question elon musk likes to fly close to the sun, which is what many investors love about him. but if technically the information is correct, is he allowed to tweet about it? craig: this is part of why the judge who is overseeing this case told both sides just within the last couple of weeks to put their reasonableness pants on. those were her words. to go back and revisit this agreement and sort of come to an agreement of what is and isn't

material and what the protocols are for musk. clearly, he does not like this agreement. he has wanted a change. that has come through in the ways in which he and his legal team have reacted to the sec sort of wanting to do battle over this again. and, the problem with musk is it probably is not a good idea for him to go about sort of taking issue with this agreement. basically doing the same thing that caused the sec to get frustrated with him in the first place. the judge in this case set a deadline for this thursday for the two parties to come together, me for at least an hour and hash things out. if they are not able to come to an agreement, the judge will make a ruling on whether or not musk is in contempt and decide what to do from there.

emily: meantime, there are real concerns about delivery. and nikkei reported that the company and panasonic are freezing plans to extend capacity in the battery factory they share in nevada. what do we know? craig: this was a report last week. nikkei, a very well sourced publication in japan, came out and said these two companies were sort of putting expansion of giga factory on hold as a result of questions about how much demand there is for electric vehicles. the financials of this project. this is one where panasonic spends a lot of money alongside tesla to build this plant. it is a massive factory in nevada. it has raise real questions about the relationship. it is really important for both companies. tesla can ill afford to have this relationship fall apart because of how much they are sort of invested in one another. interestingly, while muska was

tweeting away this weekend, he hung panasonic out to dry and said their battery cell manufacturing lines at the giga factory were actually holding up production of model 3 sedans which is kind of an interesting claim and also just is puzzling given the drop in deliveries we have seen with tesla. you would think that they are not having a problem with production, they are having a problem with demand. emily: we will be watching to see how all of that unfolds. craig trudell, thank you for stopping by. xpeng cfo brian gu says auto sales in china are seeing significant decline compared to electric cars. he also talked about tesla in china and how china scrapping its subsidy to the industry could wipe out smaller players, something he is not unhappy about. he spoke to tom mackenzie. take a listen.

brian: subsidy will come down pretty significantly. we expected that. you remember we announced the price increase as early as february to anticipate for the subsidy reduction. we think it will have a short-term impact on overall consumer demand, but in the long run, it will be good for the whole sector because subsidy itself is benefiting the low-end players and actually getting rid of the subsidy or reducing subsidy forces consumer to focus on the product differentiation and quality and value proposition, something we are emphasizing. tom: in terms of the shakeout of the electric vehicle startup sector in china, how far will pick up? what percentage of players will be left in two years time? brian: i think the shakeup will happen pretty dramatically.

i already witnessed a year ago to today, the market is becoming very concentrated. people always talk about dozens or hundreds of players in this market, but today, you look around. only a handful of players are getting attention and really developing products according to their schedule. most players are fading away because this business requires a lot of resources, a lot of commitment. i don't think most of the players will be able to attract the resources and talent that has the ability of building an organization to meet that requirement. also, going back to the subsidy question. the subsidy going away in the next 12, 24 months or being dramatically reduced will have an impact on the players that are coming to market. these players will not have the window like what we had to access markets with support of the government. for them to have a product a year from today, they will be faced with a lot of competition and small government support. tom: we have to ask you about tesla.

they are building a factory outside shanghai. is there a view, is there a comparison to be made between tesla and apple for example in terms of apple's fortunes in the chinese market where customers are looking for more domestic demand? is that a fate that could await tesla, as some startups like yourself and others push out into the market? brian: i certainly believe that will be a trend for most of the chinese consumer market. the chinese market, as you point out, like the iphone, maybe like tesla, it is educated by expensive products. the educated consumer chinese market with a higher technology knows what the product looks like. quickly, like the smartphone market, there will be high-quality domestic players coming to market and really expand the segment. it does not mean iphones are not successful. iphones are super successful in china. but at the same time, the

arrival of domestic brands with high quality and affordable prices will expand the market. tom: what is your sense of how much pressure is on the chinese consumer at this point as the economy slows? brian: i think the consumer sentiment is something to watch. also, the auto sales declined is something that is quite significant. however, we also see at the same time the vehicle segment is growing at a very fast clip. every month, you can see year-over-year growth over 80%. that is very impressive. i think in contrast to the auto market, i think ev is still enjoying a growth rate that rivals. emily: that was xpeng cfo brian gu. can the hr industry be transformed by the cloud? one startup is betting on it. we will speak to the ceo of namely next.

this is bloomberg. ♪

emily: for many that run an office, hr operations are one of the biggest headaches, but can technology streamline how hr works? namely thinks so and offers a cloud-based platform. the company says 75% of their clients say namely as increased employee engagement and the platform has made their employees more productive. as part of our work shifting series, i want to bring in the ceo elisa steele. thank you for being here. what sets your software apart? elisa: our software is so

different because it is a solution for midsized companies. midsized companies have very small hr companies would have the same problems as big enterprises. they have so manage their workforce. they have to understand data and insight. namely put that together in a one-stop shop, an easy package for them to understand and use. at the same time, we provide an engaging platform directly for the employees. emily: are you competing with folks like benefit, gusto, workday, or are you competing with old-school hr? elisa: those companies do similar things, but target on different customers. we are targeted on those midsized companies. about 100 to 1000 employees. usually, it is a competitive situation of they have not adopted tech yet and they have this opportunity to modernize the workforce. emily: what is interesting about hr is that you are at a critical entry point where employees are

coming into the organization, you are managing employees throughout the organization. as we talk about issues like bias in the corporate world in general, hr can play a critical role as well as technology. is that something you are thinking about? elisa: one of our newest and most popular products with our customer, we provide data and insight to understand their workforce and benchmark that against all of the other clients so they understand how are we faring? how are we faring on pay equity, diversity, promotional opportunities? they can look at that in the context of namely data and give themselves a scorecard. emily: the biggest hurdles when it comes to modernizing hr and creating an hr workforce for the modern world? elisa: hr has been in a function that has not been able to be measured very well. emily: often, it is not

prioritized. elisa: they usually have a department of one or maybe two, if they are lucky. they have the same problems as a big enterprise. trying to manage the workforce, retain their talent, attract talent. having a solution that combines technology and the human beings of talent is really important for their success. emily: i have to ask you. you stepped into this role a couple of months ago. the ceo was apparently pushed out after an investigation that showed inconsistent -- showed behavior inconsistent of namely leadership. what happened? elisa: namely has a very strong cultural value system. when we have any employee that has behavior that does not align with that, they don't have a place at the company. unfortunately, that happened with our ceo. i was on the board at the time and stepped in. i'm happy to say i am there now as the ceo. emily: elisa steele, thank you so much. elisa: thank you. emily: still ahead, earnings season is right around the

corner. netflix kicks it off with its report out after the bell tuesday. what you can expect, next. this is bloomberg. ♪

emily: supermarket sweepstakes. yes, they still exist. now, apparently more than ever people are being more cautious about filling out more information about being part of a scam. brad stone recently experienced winning a whole foods sweepstakes he did not even enter. this story is insane. what happened? brad: we often talk about amazon and -- emily: you write about amazon. brad: i have colleagues that report about amazon.

i was on my way to visit them when i got a call about a guy introducing himself as max from amazon whole foods saying i won a sweepstakes, $10,000 in whole foods gift card. the irony was i figured it was a fraud and my colleagues thought it was a fraud. i confirmed with the company and it is real. it is a practice supermarket still do. emily: somebody at amazon told you that thought it probably was not real. it sounded too good to be true. brad: i asked my tax preparer for advice on how to handle it and he thought it was fake. yes, there is a difficulty and running these kind of promotions in the modern day of robo calls and spam emails. nobody believes they are real. emily: amazon and whole foods are actually giving away $10,000 gift cards to customers. how are they choosing these winners? brad: i was confused because i have not actually entered into

any contest, but apparently, if you use the amazon visa card in a whole foods, you qualify for the drawings. i asked this guy, what are the odds of winning? he said astronomical. it is unclear to what extent that is a successful promotion because i never thought they were promoting inside whole foods. yet, for a while, was the fortunate winner. emily: what are the odds for any tech reporter who covers amazon winning? brad: i did not accept the prize. lunch is not on me for the rest of the week. i thought it would be a bad idea to take it. there is some other lucky winner. emily: that is a bummer for you. speaking of the broader issue here, is amazon having a problem with getting more people into whole foods? why offer something like this? it seems very un-amazon. brad: i called a lawyer who specializes in this and he says all supermarkets do this. a percentage of consumers out

there who obsessively enter these things. it is a great way for any retailer to not only bring more people into the stores, but compile a database of active customers. there is some other reasons for it. i think it is very un-amazon-like. i think they prefer to spend money on lowering prices and increasing customer service. a residual thing that whole foods has done. emily: there was some fine print in the contract that made you uneasy. should customers who are winning these $10,000 be concerned at all? brad: i don't think so. it depends on who you are. there was something in the language where there would be the right to use the winner's likeness and name in promotions. so i had a vision of my smiling face with a kale salad on the wall. i'm not ready for that kind of exposure. other than that, no.

i think for the right person, it is probably a great fortune. emily: unfortunately, we will not see a life-sized poster of brad stone in whole foods. thank you for sharing that. bloomberg tech senior executive editor brad stone. tech earnings season yet into full swing tomorrow with netflix kicking it off. stock earnings coming off of disney's recent salvo into the streaming space. to discuss, i want to bring in kamaron leach. what are we expecting for netflix? kamaron: this is not a typical quarter for netflix. since netflix last reported, there has been about four new entries into the streaming industry. now, we will need some confidence from reed hastings just to say is everything going to be all right. this quarters seems like it is going to be in line with subscriber estimates. analysts are expecting 7.3 international page streaming ads

and 1.6 domestically. the real issue investors will be looking at is guidance. it seems like it will be softer for next quarter. also, because there is an increase in prices also. emily: how are analysts reacting since disney unveiled their plan? we got a fair amount of details. less details with apple's plans. this is the first time netflix will be reporting now that we have more information about what some of these other competitors are doing. kamaron: we have seen a steep drop-off in netflix's market cap since last week's announcement of disney plus. short-term investors seem to be worried, but for the long-term, it seems like investors are confident netflix still remains of the top of the throne. you have disney plus that will bring a pretty big ip content library that includes marvel and pixar given the 21st century fox deal.

analysts seemed to be ok with what is going forward. now, the problem is what is going to happen for netflix coming up? disney is going to be a pretty big competitor to netflix, but we will see what netflix can do based on the earnings call. emily: you used the word throne. i assume the pun was unintended, but "game of thrones" premiered last night. the first episode of the final season. hbo saying 17.4 million people watched it, which is more than the previous record. hbo has been going through some turmoil of its own. the ceo has left after at&t absorbed time warner. how much competition -- how much are netflix analysts worried about hbo which has been on the throne? kamaron: that is something analysts are looking forward to for the second -- that is why second-quarter numbers are soft

when you wind up looking at the earnings tomorrow. there was going to be a lot of content. analysts seem to agree that a lot of people are watching "game of thrones" this season. it does not seem like netflix strong content slate. they have streaming on the network now but it does not seem like that will drive people away from "game of thrones." emily: what about the longer-term outlook for netflix, regardless of who sits on the iron throne? what are analysts looking at, let's say, a year out once disney and apple presumably have launched? kamaron: by the time disney and apple launches later in the year around november, it looks like apple maybe ahead of disney when it comes to their launch, it seems like netflix investors are ok with what is happening. the streaming industry, there is an uptick.

they are happy with the increased competition because it is driving people away from traditional broadcast. emily: thank you so much for that update. we will be all over netflix results as they come out. got the "game of thrones" theme song playing in my head. that will play as out. that does it for this edition of "bloomberg technology." we will be all over netflix tomorrow. reaction and analysis. tune in for that. we are live streaming on twitter, @technology. follow our global breaking news network, tictoc, on twitter. this is bloomberg. ♪ manus: this is "bloomberg

daybreak: middle east." war,f: a global trade japan and the eu try to seal deals with the united states. suggest the summers fed's next move could be a cut. okc rosengren says he is with the low target inflation. yousef: efforts to revive inflows after years of instability. we hear from the nations investment minister. closesone of the runways at one of the international airports. how will that affect