already thinking about the next election, how the health care stocks in terms of people seeing a thing to worry about. maybe that is part of it. part of it may have to do with the fact that people that we and deal with our active managers. i think that is the ongoing shift we see in the industry. maybe we do not see the same flows because people are doing it in a passive way. i think that is part of the psychology. caroline: we did see volumes flat today. a little higher when you look at what was happening in terms of the s&p 500. up 10%. we saw a sudden falloff in the clothes. -- close. romaine: we had dow transports up almost one percentage point today. philadelphia semiconductor up a full percentage point. that is a silver lining. noah weisberg, and

gina martin adams. your that was part of thesis p or where about to get facebook, amazon -- is tech the right time to have an leadership? gina: i think romaine brought up the semiconductors as a leading indicator for stocks. when semiconductors are rising, the stock market is doing well along with transports. that is the key. i think it is a very solid sign that texas instruments comes out and talks about -- talks down expectations of recovery into the latter half. can -- and the rise.is continuing to if you look within tech, clearly tech valuations are some of the most extreme across the s&p 500. if you look within tech, valuations are still the most discounted group within tech. room for valuation expansion on this group relative to the rest of the counterparts in that index. if they continue to lead, your outcomes are probably good for

the market. taylor: we have the tech, s&p 500 tech index running up to another record. the p/e ratio on this tech stock above the five-year average. caroline: microsoft has broken. looks as though we have $1.14. camene: looks like revenue above estimates. coming in at 30.6 billion. the estimate was under 30 billion. quarter.or the third still looking here to see if they get any outlook. right now, the reaction seems to be mildly positive. caroline: if we get another 3%, we will get to $1 trillion. taylor: massive cloud revenue beat. that may be's why we see share -- may be why we see shares higher. also pointould outcome on personal computing, pulling in $10.7 billion. caroline: that old chestnut. romaine: it is not sexy but still makes money.

coming in at 10.4 billion. caroline: your take on earnings thus far? what are you making of it? noah: i think we are living off optimism has to come into context of the hangover from q4 where we saw analysts taking down their numbers to a point where we thought it was overdone. especially for first quarter. in tech, this was the apple story in the fourth quarter. numbers do not have to be great to do a little better with the bar lowered. we are keeping a close eye on tech. taylor: do we feel top-heavy? wereof the biggest leaders that facebook, amazon, netflix. o you get concerns that it is not a more diverse group? gina: if you look at any indicators come it will show more than 85% of stocks are participating in this rally. even though tech is leading,

every single sector is up. health care is up the least. barely getting a gain on the year. but you have double-digit gains for most sectors in the index. as much as it is concentrated because you have the biggest stocks in the index still in leadership position, still have tech in leadership position, there is a pretty big amount of participation. i am not tremendously worried that we are standing on one leg. get guidanceill from microsoft once they have the call. that is when they usually give it. of what wesk you have heard on the conference calls. the commentary from executives have not been dour but more measured than what we saw in the past. some people see that as a good thing. temper deftly does expectations. stocks are moving higher even though managements are not saying that things will get better. it does speak to what noah was s analystsaying. -- noah was saying.

they do not have to come out in the beat of the band. they just have to confirm that things are going to get moderately better. at least of our. i think you will find as the earnings season progresses, that is a stock buy stock, industry by industry question. caroline: it is quite amazing when we have companies still at $1 trillion market valuation potentially. now getting facebook numbers coming out. first quarter monthly active users coming in at 2.3 8 billion. a slight to above the 2.3 7 billion. 93%. still wholly dominated by mobile. daily active users, in line with expectations. these are slight growth of 2% compared to the previous quarter. earnings per share comes in at $.85. revenue, a slight beat. we are getting numbers coming from facebook as where people wanted to see it. taylor: the sarah is out. let me bring you those.

cross-border volumes are up 4%. second quarter payment volume growth is up 8%. looks like at least for now, operating revenue beats estimates will continue to shift through this. transactions up 11%. payment volumes up 8%. romaine: i want to go back to facebook for a second. they are reporting $3 billion legal expense they said is related to the ongoing ftc investigation we had out there. we know costs were going to be a big issue. caroline: all about privacy. romaine: i also want to mention that liam researches out. the revenue coming in above estimates. also coming in above estimates at $3.70 a share. the estimate was for something else. i guess the real story will be about margins. caroline: and about earnings calls and more flash to what will happen in the next quarter.

it looks as though the stocks got further likes to go if we are getting those numbers. taylor: visa come on the top and bottom line. what is the biggest risk? what are we missing? we are focused on the top and bottom line. is the risk that trade deal does not go further? -- go through? noah: there are a couple things. one, the margin is the key. where analysts put numbers down the most. we think pressure builds as the expansion continues. we will not see it in the first quarter but as we go on, we want to keep an eye on that. growth we are in a slow environment, anything that can help your revenue come down to the bottom line is critical. that is a fundamental concern. i am probably most worried that we have taken a lot of credit for that using a financial conditions. they are not on autopilot. i think they have toned down that communication. i think that is something that they start to reflect.

that could be an issue for the multiple. what multiple do you pay if the fed is thinking about a more balanced or maybe rate hikes? it is either distance, but when things seem distant, that is when you need to mention it. caroline: thank you very much. let's return to what facebook is saying. it seems to be the and or many of the money they are setting aside to an ftc related loss. this is all to do with cambridge analytic a, the concerns about data that was handed over to a company in some way related to the trump administration. trump electoral campaign. facebook up 4.6%. -- $3 billionebt loss in their previous first-quarter. related to the cost. we could see more issues in terms of privacy. in a statement come at like this is what they are trying to highlight. the they are focused on privacy. mark zuckerberg saying, our community grows that we are focused on building out our

privacy focused vision for the future. romaine: i want to point out that when you talk about the rally we have had since december, two of the big drivers that have been microsoft and facebook. top 15% of the point gains we saw and the nasdaq. microsoft out with its earnings. that cloud revenue, 9.65 billion. above the estimate of 9.3 billion for the quarter. that is a growth rate of close to 70%. i have not done the math. take my word for it. they have be done every metric here pretty solidly. potentially we could see some gains extended. caroline: 4% higher to get to that one trillion mark. romaine: yes. taylor: as much as i would love to stay and talk about tesla, i will have to leave it there. gina martin adams and noah weisenburger. "what'd you miss?" is coming up next. we will be looking at tesla and foley. this is bloomberg. ♪

caroline: live from bloomberg world headquarters in new york, i'm caroline hyde. romaine: i'm romaine bostick. caroline: another big day for earnings. we will get you up to speed with facebook, microsoft, visa. all rising after hours. facebook taking a three billion dollar legal expense and the third quarter. earnings per share would have been more than one dollar higher than the age five cents it came in with. people liking the growth in daily active users. up 72 percentage points. up in all ofosoft

the main metrics we were looking at. growth going to be the driver for this market. highest rated company in the s&p 500. chipotle reporting earnings, comp sales up 9.9%. the estimate was for a 7.3%. the company guiding higher for 2019 saying it sees comp sales growth in the mid to high single digits. shares down on this news. these numbers appear to be slightly above what the street was expecting. caroline: we will dig and further. we will stick with earnings. let's get insight into facebook, microsoft. we are joined by a founder and notablyformer analyst, bearish on facebook that is global president of this group. you.i will start with your business is about getting the buy side estimates. is this living up to the buy side estimate? lee: microsoft numbers are good.

in aboveously came that. the street was lower than that. microsoft numbers, well. they are writing that enterprise that enterprise market super cycle. there are other companies much smaller than them that we like as well. if you have to allocate money to a large-cap technology stock now, do you want to deal with the issues that facebook is up against now with illegal stuff? do you want to deal with other things? when microsoft sits that the center of a great economic story. heard thishave argument that microsoft is more diversified than some of the more cloud companies. they are doing a lot of business work. they still have that consumer side. leigh: it depends on the beta you want to take. if you want to be super exposed, you go with something like hub spot. there is a number of them we like a lot that we have liked for two or three years. beta, thet the lower

diversification, i think microsoft is where it is at. caroline: we have to look at what is happening with facebook. you are exposed to privacy concerns. you are exposed to legal risks. maybe up to $5 billion when it comes to the ftc investigation. brian, what is your take on the ongoing risk reward when it comes to facebook? brian: that is exactly the right way to think about it from an advertiser perspective. we represent the largest single pool of spending on facebook or any other side of media owners. the issue every advertiser has to consider, especially those who care about their long-term brand health is whether or not getting their money's brand safe. and whether or not there is stained or tarnish and the association of where they spend their money. it is a huge risk. advertisers recognize there is report to be associated with a platform that can deliver. facebook specifically and instagram increasingly are important suppliers of media

inventory. at the end of the day, it was always going to be the case that there is growth. that is not a shocker. i think the long-term risks which is always something wall street was ignoring and still is to some degree, it still exists in a big way. romaine: isn't there a bullish case to be made here with regards to the stickiness that facebook has had? since the cambridge analytic a scandal over a year ago, they have not seen a flight in users. people seem to be stuck to this platform for better or worse. brian: separate users from usage. unfortunately, sometimes we focus on the data we are given, not the data we need. we can get the data we need from third-party sources. i think you will see consistently and even the company has acknowledged there has been a reduction in usage of the platform. that is not to say they are you losing users. their overall advantage is substantial. itt is among the reasons why

is compelling. from an advertiser perspective, you can also find substantial number of users in other places. you just can't find the tonnage and one single place. caroline: talking of tonnage, it is interesting that facebook is talking of a family of services. talking about how 2.1 billion people use facebook, instagram, and whatsapp every day on average. they are trying to bring this beast together even though perhaps instagram has always been done well with not being associated from facebook. zuckerberg knows he needs to do that before potential regulatory things. personally, i do not think congress will get their act together to do that. who knows? it could happen. the other thing is in regards to the risk, the brand risk of putting your money on facebook i think whatser, is interesting is in the past for social media names, as they got they could come at the worry was the erosion of growth in users.

as a leading indicator of erosion in revenue growth for the platform, but facebook is different. it is of the self-service nature of the platform and how easy it is to go in there and put your money toward something and know exactly what your metrics are on cost per customer acquisition as a large company, as a startup, whatever it is. you can measure so well. i think if facebook's ability to capture advertisers is going to erode, we will see it in the erosion of the numbers themselves and it will not be the user numbers that matter. which is why at low single-digit user growth numbers year-over-year, it does not matter for people. romaine: thank you very much. weezer,o thank brian global president of business intelligence and leigh drogen. he will be spit -- sticking with us. i want to point out that paypal has reported things. they are beating on the top and bottom line.

$.78 a share. their revenue coming in slightly in line with what analysts were expecting to q net revenue. coming in life. this is bloomberg. ♪

want to recapst paypal earnings. they came out with first quarter results. they gave a forecast for the second quarter that appears to be light. revenue for the second quarter, 4.3 billion. the average was 4.37. an adjusted eps basis, giving guidance of $.68 to $.78 a share. the average estimate was for $.69. caroline: crowd sources earnings

estimates along with those from private investors and epidemics -- academics. paypal missed for a key concern? leigh: we were a couple cents above where they guided her they blew the numbers out of the water so well this quarter. $.70, $.67. that is a weird guide on the eps side. romaine: are you hearing in regard to the general space? paypal has outperformed all of the payment companies. this has been a space that has been hot amongst the hedge fund. leigh: we have seen upward revisions for the last couple of quarters and the out quarters for late 19 for all of these customer -- companies. square has done well. stocks rolling over a little bit now which is weird. another massive secular play. it is almost to the point where you do not want to over think it. we are still at such a low level

of total process payment, electronic payments versus cash. you put yourself on the right curve here at the end of the day. caroline: when you are looking across the board at what has really been happening in terms it feels as though we have been on fire. today we took a breather in terms of the market. do you think generally the street and the buy side got way too pessimistic? leigh: let's separate where the market is in terms of very allbought and extended from major moving averages. it has been on a massive run which is totally warranted given that we are coming back to a pe that we were at before. basically what was a credit meltdown last year. of the numbers going forward, i think what has happened in energy is important. energy and materials where the things that were basically going to produce and earnings recession. being below zero year-over-year, it is not that important.

psychologically, the fact that those have picked up and everybody is going to stop looking at those numbers will say, tech is doing well. health care is not doing that. consumer is great. it is not surprising that we are going to have more focus on what is going on in these numbers and less on the energy numbers are negative year-over-year. romaine: when you are looking forward to the tech earnings, given what we have seen so far, the chip space seems to be ok, at least stabilizing, then you have on the consumer side and on the business side of tech. all of those things based on earnings we have gotten seems to suggest we are not falling off a cliff. the semiconductors have been rough. there has been some -- caroline: tell that to the stocks. leigh: although there has been news out of korea that shipments have not been great. romaine: how much is this run-up in stocks related to 5g? i have heard this theory of why we have seen so much buying.

leigh: we are always going to look forward in terms of tech at a year out or so, especially for the cycle of those companies i like to watch micron. it is just like perfect cycle. there is a perfect time to buy it and that is -- every single time, romaine: -- romaine:for every person who has made a fortune off of macron, i know just as many people who are broke. leigh: countercyclical for all time. they seem to take the thing up and down 70%. caroline: what do you think acts as a bellwether when it comes to technology? when you are looking -- you were anticipating the headwinds to continue, we have had that exposure to the rest of the social media platforms. so many of these companies are coming broad. leigh: i do not love the social media space. i think that was a last decade kind of story. where the growth was. look at facebook now.

you are seeing them circle the wagons. and retreat into a fortress against everybody that is coming for them. romaine: i'm glad you brought that up. pinterest made a big deal of not identifying itself -- this narrative. we are waiting for tesla, another company with a big narrative. how important is this to tech run-up? paying attention to fundamentals with these companies, at least not a lot of traders are. it is about the hope and growth and potential these companies promise with that narrative. leigh: facebook is real. those numbers are very real and very large. up until this year, the numbers were growing a lot. the more enterprise oriented companies and google which is like a technology etf at this point, they are very, very real. on a much lower scale. i really like google and i like microsoft. the reason i like google is

because they are spending a lot of money on and r&d, more than they had spent in the past. if google sees they have a place to spend that much money on r&d, they have to know something. they have to be sure about something that is going to pay off. we don't know. that is the thing. is at the cars? caroline: that is not all. leigh: who knows. it is really hard to know. this report will be interesting when it comes out. maybe we get some insight into how they are spending money. caroline: moonshot is making it. great to get your focus. he will be sticking with us. up, we will be talking caterpillar, boeing, industrial reporting's earlier today. we will keep you ahead of the earnings they lose and -- earnings deluge. this is bloomberg. ♪

♪ mark: i am mark crumpton with bloomberg's first word news. for the first time, a trump official is refusing to appear before a committee, the deputy attorney general not appearing for a deposition before the house oversight and government reform committee as he was scheduled to do tomorrow. the panel would like to have him answer questions related to commerce secretary wilbur ross's decision to add a citizenship question to the senses. president trump told reporters, "we are fighting all of the subpoenas." a libyan trump told

strongman that the united states supported an assault on the country about vs capital to depose its united nations backed government. sources tell bloomberg the phone call took place after the egyptian president met with mr. trump on april 9 and urged him to back him. meeting,before that sec. of state mike pompeo said the u.s. opposes the military offensive. minister ofign israel says the aim is to bring them to their knees to talk. national security advisor john bolton and allies in the u.s. want, and i am quoting, "regime change and the disintegration of iran." one man said it is not a crisis yet, but it is a dangerous situation. accidents are possible. >> do not put pressure on.

try the language of respect. i am not talking to you. i am talking to the government. it will not kill you. believe me. mark: he warned if the u.s. tries to prevent iran from selling oil, they must be prepared of consequences. and condemning the mass execution tuesday of 37 men. beheadings were carried out despite repeated warnings about lack of due process. >> the high commissioner for human rights strongly condemned the beheading of 37 men in spite of repeated appeals by the u.n. human rights system about the lack of due process and fair trial guarantees, with confessionsof obtained by torture. at least three executed were minors at the time.

they were sentence. k: amnesty international said some were accused of spying for iran and sentenced to death after what was said to be an unfair trial. global news 24 hours a day, on air, and @tictoc on twitter, powered by more than 2,700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. romaine: all right, thank you, mark. as we wait on tesla earnings, i want to report on microsoft. they had a jump of 14%, which, for a mature company like this, is pretty good. their cloud services revenue rose, a little bit slower than what analysts were expecting, but still, some pretty significant growth there in that cloud services business, which now makes up almost 30% of their sales. caroline: we are closing in on a valuation of $1 trillion. meanwhile, facebook, fourth

quarter -- first quarter revenue rose. it was ahead of the 25% expect. earnings-per-share, a big miss. there was a 3 billion-dollar hit in terms of a legal expense with the ongoing federal trade investigation, yet to be resolved, all caught up with the cambridge analytic a investigation, as well. it could hit $5 billion. it will be interesting what they say about this, with the potential costs in regards to this issue. caroline: with more, let's go back to leigh. facebook, taking charges, seeing slower growth. leigh: yes, i had a friend who writes it going to work for one of these companies is functionally no different than going to work for a bank in 2005, just a different dress code. it is a similar story.

they have a money tree. they make money every quarter, pretty easy, and now, they will push the envelope on every single thing, and they will be willing to pay the price. romaine: paying the price, we thought -- talk about 3 billion, five billion dollars, there are several other investigations, not only in the u.s. but also overseas. at what point does this get to a critical mass, where they are paying out all of these fines? i am not sure if you look at it on a non-gap basis. serious though. a lot of this market is driven by quants, right? and they are probably going to strip those numbers out. we are probably going to strip those numbers out at estimize for an apples to apples view, which is what people want. to hit a critical mass, i think you would have to have people

seriously steer a structural change in the way the government deals with the company, not these one-off, even if they are big, these kind of one-off slaps on the wrist. they have to be structural. romaine: all right, believe it or not, there are actually companies out there bigger and more important than facebook. with us.gen, stay we had results from caterpillar, among the big industrial reporting. to break it all down for us is a reporter with bloomberg opinion. do i have that right? i actually went to talk about caterpillar, because that shocked me, -- i actually want to talk about caterpillar, because that shocked me. it was an upbeat forecast, but people looked at the situation in china and the potential slowdown, and they sort of sold off. uporter: starting to put inventories and getting ready for the spring selling season,

so when you have any doubt or worry, i think that does trigger people, and, of course, with so many macroeconomic concerns lingering in the background, the mix in the background, we really have not been getting a clear cut trend. with the caterpillar earnings, there was the margin miss in their construction and their energy units. they talk about a big increase in manufacturing cost and also freight and logistics. we saw analysts really hammering management on the call, wondering what is going to happen to that over the course of the year. they will get a bit of a benefit from steel prices in the back half of the year, but that will continue to be a watch point. caroline: we knew that china was having a growth slowdown, but how much was everyone prepared for the competition to be as fierce as it is for caterpillar? talked caterpillar has about this before, so it is interesting to see people latching onto it, but with the

logistics and the general idea of margin pressure, that is just another stress on that profitability, so i think that is why people are really focusing in on that. 8maine: boeing, the 737 max software fix, it seems like that is going to be drawing on. we have no forecast for them, which is sort of understandable, but what are you hearing out there from analysts and strategists about the future? muche: there was so anticipation for this earnings report since the 737 max was grounded, but we did not get a lot of detail that we did not know. boeing did not give any timeline for when they would have that airplane back in the air or estimates in terms of future production plans. it did leave the door open for curtailing the max further, should this stretch on, which i take this is not a great sign that they expect this to turn around quickly. i think the analysts, the baseline is about six months, so maybe you are talking about

august, september, which be it light with the airlines have done, including southwest, who have pulled the plane through early to mid august. one parts company is talking about possibly a tencent -- a headwind. when you start talking about that type of timeframe, that is obviously worst case scenario, but suppliers are thinking about that, which i think is interesting. caroline: what have you made of the ongoing focus coming from other media areas, as well, about not just the 737 but the 787, potentially some issues with that, and fixing it? brooke: anytime you have a company under this type of harsh spotlight, you're going to get scrutiny. i do a lot in terms of covering ge, and every part of that company has been turned over and looked at. i do not think that is a bad thing. i think that is a good thing, but i do not get the idea that 787 issuesthat the

are the same as the max, and then the air force has stopped delivery because they are finding scrap delivery in the planes that are being delivered, so that is certainly something that boeing wants to get a handle on, but the 737 max 8 really focus. romaine: ok, you can read more of her stuff on bloomberg opinion get thank you very much. of course, we are still waiting for those tesla numbers. caroline: where are they? romaine: i don't know, but we will talk about something else instead of tesla, groceries. this is bloomberg. ♪

romaine: walmart is getting into the beef business, the nation's

biggest grocer working on its own angus beef chain. matthew boyle joins us. this was sort of a cooperative, right, with a bunch of farms? they are going to produce -- to bew: they are going producing their own high-quality angus beef, something we are seeing more and more. a plant. they want to make sure there is enough supply of the products like meat and to three chickens. supplies,is it about or being able to tell consumers exactly where their meat is coming from? matthew: more and more, where did that steak come from? what is the name of the cow? they want to know more and more about it. other than this comes from tysons or cargo. it is actually from texas. cargill. or

romaine: why couldn't the other suppliers supply -- matthew: the suppliers are supplying angus beef. romaine: why not the storyline, the name of the cow? matthew: the chain of supply has always been a huge issue, so walmart said rather than to wait, not to say that tyson and others are not doing a lot on the traceability side, they are branding more of their eve come but walmart said, why don't we do this ourselves, take the extra steps necessary? we are big enough and have the clout. we can do it ourselves. matthew: a lot of this that you will find, it was still come from tyson and cargill. 17% of their sales to go to walmart from tyson, so we will see, but it is not like tyson cargill are going

away. romaine: they have been down this road with other items? matthew: they do a lot of their own manufacturing. retailers are increasingly saying, let's do it ourselves. let's cut out the middleman. we can cut costs and also tell a bit of a story. what do you call them? romaine: veggy discs. caroline: time for this mark charts. abigail doolittle is here, and we walked through the analysis. abigail, there have been some big reports. what do the charts say? abigail: we are looking at some companies, results out from facebook, and a little bit of a mixed bag, but mainly to the upside, especially on the revenue side, where they beat to the upside. >> and i think a lot of

investors were thinking the exact same thing. thatin july, we had massive 20% drop, right? and it took many months to kind of get that selling pressure to stabilize, and then finally, you start to see trends slowly start to improve. now, what i thought was interesting is look where we were right before earnings today. we were right back at the 180 eight resistance level, created from that gap down -- we were 188 resistancehe level, created from that gap down. earnings gave the last bit of momentum to get the stock above resistance. willil: so you think we see new all-time highs? >> 5% post-market, so i think that momentum will get it definitely headed in the right direction. abigail: got it. let's put facebook in. you have the chart of the new york trade.

this is the index, the wider one, including alibaba and other tech names. >> what i really like is that we are looking at the s&p testing all-time highs. can it continue? but what about the faang? we are still a percent below our 2018 highs. abigail: that is pretty high. -- we are still 8% below our 2018 highs. days, wein the next have the market cap, a lot of faang names, reporting. we think we could be testing these highs again from 2018. abigail: when you look at this chart, it is really a range, even though it is not drawn that way, and you're thinking maybe we will go above it. >> we are starting to see a pickup and relative performance, so we are seeing this group emerging, and we think that is positive.

abigail: you were just talking about the nasdaq and the equal weighted nasdaq. let's take a look at that. >> let's break that down. we have the nasdaq 100. the middle panel, the nasdaq 100 equal weighted, and that is pretty impressive. that is pretty impressive. what is actually or impressive is the market. every name is on this. we actually broke out in mid-march. abigail called that is pretty interesting. we have been talking about the fact that if you do an equal weight on the nasdaq 500, we are seeing strength right across the board in biotech and some of the health care companies. >> exactly. so what are the best aspects? this just shows you that the strong,00 is extremely so we believe the nasdaq 100 can see more, especially with these large market cap names reporting and breaking out. pattern and we see this down here. >> yes, and we think that is the next momentum to push us higher.

>> rate to have you on smart charts and your bullish view on -- great to have you on smart charts and your bullish view on the faang. caroline: after the bell, we are still waiting for those tesla numbers. this is bloomberg. ♪

caroline: we are still awaiting tesla earnings, and the founder and ceo of estimize. how late is it for company to be this delayed? leigh: companies do not delay, but there is a really great strategy, looking at moving the earnings back. that is not a good sign, but i do not know what it means. maybe they just forgot to push a button or something? romaine: maybe they are dotting the i's and crossing the t's.

a lot of people sort of on edge, waiting to hear what they have to say, but we are still waiting to hear from them, and they will have a conference call. what do you want to hear from them in regards to their outlook? leigh: there are a couple of things. stocks trading greater than the 250 level, which is the level of support. if it breaks below that, it will correspond to bigger issues that people believe they have going forward. at this level, you have seen these kind of short squeezes in the stock. the thing that we really want to see is that the production level, especially the model 3 going forward, ramps up. it is coming down this quarter. also, $2 billion on the balance sheet. he put out two quarters of positive eps numbers. he really needs to get those numbers back above negative, and i think it is $.87 this quarter, the street below that, but that balance sheet is not going to

last long if he continues to run this thing at a loss, so the question is, going forward, where is the growth coming from? obviously, the orders have sort of trailed off, and he comes out the other day and says, "within that ifwe are going," beat uber, they could maybe shut them out and owned the market. i was wrong about that. they did not do it, and the question is, some people say -- you see what happen to google. they are going all in on this. production of cars, right? and they say, we are one year out, and others say we are 10 years out. tom friedman over here. leigh, always great to

have you with us. , founder and ceo of estimize. romaine: in the chip market, shery ahn is here with the story. only a larges not investment but also like a 10-year investment. is quite rare for samsung electronics. it is sort of putting more confidence into this industry that they are devoted to the chip sector, $116 billion. they are saying they are going to create 15,000 jobs in research and production facilities, not just memory chips, bowing into logic chips. caroline: -- going into logic chips. caroline: who does this affect? shery: companies like qualcomm and intel, but people say it

will take a long time, but perhaps in the short time, also against qualcomm and mobile processors and also taiwan semiconductors themselves, to other companies, and it is not just internally used for samsung. chipse: talking about the today, but i am still interested in this phone. are they coming out with this thing? shery: they have delayed the launch. it was supposed to be april 26. we have all seen those pictures of the screen completely going bust when you take off that little, affordable protection on top of it, so, yes, it was quite a fiasco. caroline: a fiasco, a difficult week. they, perhaps, tried to lift themselves out of it with this. and chips are on a tear. when you look at the stock valuations, what is it? record highs? on theyes, we have this chart.

we are talking about five consecutive weeks of gains, also 16 out of 17 weeks of 2019 onning, and that is all expectations that the market will get better, but there is still a little bit of doubt. texas instruments projecting a very good second quarter, but hinting that the demand would be a little bit slow, and the recovery could be slower than expected. chery, thank you. -- shery, thank you. do not miss ear. "bloomberg technology" is next. -- do not miss her. romaine: watch the next show. this is bloomberg. ♪

♪ i am emily chang in san francisco, and this is "bloomberg technology." coming up in the next hour, facebook earnings out, legal earnings sorry, the social network saying it is setting aside $3 billion in preparation for a massive settlement with the u.s. federal trade commission. plus, tesla first-quarter results delayed. they are supposed to be out, but we are still waiting.