♪ : i'm carolarol massar in boston, in for emily chang, and this is "bloomberg technology." we explore health as we sit down with the ceo of boston children's hospital as well as care.com. upending the plans of the city of boston. exactly what happened. withse tech titans

positive earnings results. we are live from boston this week. power of the regional tech economy. today, we are at the greater boston chamber of commerce annual meeting from the convention center. the chamber brings together leaders from a broad and diverse representation of businesses, industries, and people driving the greater boston economy. first, a developing story out of washington. president trump signing an executive order wednesday that could restrict telecommunication zte fromwei and selling equipment in the united states. with then washington details. we were expecting this executive order.

what does it exactly do? been rumored for upwards of a year. we learned in january that it could be issued as soon as february. it wasn't. it was put off a couple of times. i think there has been some internal debate in the administration about exactly how far it should go. the executive order doesn't name any company or country. it doesn't outright ban huawei or zte from selling products in america, but it does give the commerce department the power to review purchases of products made in countries that are considered adversaries before those purchases go through. those are purchases by any private company in the united states. carol: this order was not meant to single out any company or country but yet it does come at an interesting time when the u.s. trade negotiations aren't going well. alex: i wouldn't say that it wasn't meant to single out any

company or country. it doesn't. words china or huawei are not in the order. i think it is very much aimed at china and huawei. i don't think we should pretend it is not. it absolutely ratchets up tensions at an already sensitive between the u.s. and china. we are in the midst of watching a tentative trade deal between two countries collapse. as a result, the trade between . war that is more than a year old between the u.s. and china is escalating. this order can't help. carol: thanks for the details. we appreciate it. alex wayne in washington. back to boston's annual chamber of commerce meeting. behairman and founder will 's ceo and- care.com founder will be inducted into the hall of fame. she started the company in 2006.

today, it is the largest online deccan -- online destination for managing family care. she is joining us right now to talk about it. thist to get to your honor evening and what you are doing is a company, but we have to talk a little bit about earnings. you did beat in terms of the first quarter, but disappointment about the second quarter outlook. what can you tell us about growth in the company? sheila: we are focused on building trust overall given what our brand stands for, focused on background checking and improving overall the delivery and offering for families. carol: that is something you are focused on in terms of caregivers that are part of your platform. costs to the company. sheila: we have added enhancements that focus around social security, verification, enhanced in-depth background

checks, a seven year terminal record history. we think investing in these kinds of things is really important for families and long-term value for shareholders. carol: give me an idea of where the growth is. one of our fastest-growing verticals, we are very excited about it. the mission of care.com is trusted affordable, scarab -- affordable, scalable care for families. everything from childcare to senior care and lots of services in between whether it is pet care for tutoring, housekeeping. carol: we've had senator elizabeth warren talk about universal health care. in terms of your vantage point and what you are seeing come of the cost, sometimes the difficulty -- are seeing, the cost, sometimes the difficulty for families, is that possible

in an affordable way? what i love about what senator warren and others are talking about, it is not about politics, but about families. universal what i love about what senator childcare, it is great for getting care, but we need to provide a variety of care. a subscriptione service and then families can find the care they need at whatever cost they can negotiate. we have about 25% of our -- we arectually trying to make sure we provide a scalable solution. carol: what is the role for corporations? some folks at amazon's have been pushing the company to be more proactive. what is the role of the private sector? sheila: i think it is a very big role. i'm super proud of boston for taking the lead for boston

companies. paid leave, pay equity. like care atit work. , manynk about companies of these great boston companies really provide care benefits so their workers can show up for work. i think it is really important. andink they are speaking up articulating what is important for them because there is interdependency. you need great care to work and you need to work to pay for great care. carol: you have access to a lot of critical information in terms of individuals, health care. am curious what you are doing in terms of securing that data and data privacy? sheila: it is nonmedical. from a client perspective, it doesn't actually touch care.com but we invest a lot around

privacy and cybersecurity. requirements in europe, the california requirements. it is something we take very seriously because it is about protecting families and caregivers. carol: let's talk about the award you are receiving. i love this name, women in business, all in. what does all in mean? sheila: it is really about bringing your authentic self to work in all you can do. got a job and i was a mom, i realized i wasn't being true to myself. my responsibility to find work that i could fit in and be who i am, but also making sure that work takes on the responsibility, embraces diversity. carol: so cultures have to change within an organization. sheila: absolutely. carol: congratulations on your award and thanks for taking time out. care.com ceo and founder. coming up, we've seen over and lyft -- we've seen uber and lyft

hit the public market but we are waiting to see others do so. we will talk to one tech investor about the environment. this is bloomberg. ♪

carol: welcome back to "bloomberg technology," live in boston. ipos,ear of highly touted we have seen a lot of names like uber missing the mark but others doing well. we are still waiting on a few others like workplace software platform slack. startupser to watching go public. invested in firms such as slack.

he was on the board of a company that was a success story. nice to have you with us. i've got to ask you about the ipo environment. what do you make of it? do you consider the uber and lyft ipos a disappointment? >> if you are a late stage investor, you are probably disappointed. the companies went public fairly late compared to other tech companies. the growth is not what public investors want to see. on one hand, you look at a company that is worth 60, $70 billion depending on the day, and it is remarkable that a company 10 years ago was worth zero. on the other hand, they raised most of their capital in the last three or four years and most of those investors are not jumping up and down. it is still very early. i get it, but it has been around for 10 years and it is still not profitable.

the thing that is is thatt about uber they have this challenge where they have to subsidize rides to their consumer and acquiring drivers. it is difficult when you have to basically incentivize both sides of the marketplace. carol: ipo versus direct listings. i know spark is considering a direct listing. do you anticipate more startups will go the direction? is an option for some companies. spotify had a direct listing. we are invested in slack so i have to be careful about what i companies, it is not a possibility for them. i think they really need a brand of a spotify or slack to do it. to get that attention of the street, investors covering, et

cetera. carol: social media, what do you make of where it began and where it is today? bijan: clearly, where it began, people would tweet out what they were having for lunch, it is remarkable. i think it is an important part of the conversation for us to have. what people are saying locally. i still think it is the definitive place to get information and be able to comment on that for fun, et cetera. clearly, there are challenges oversightg this kindcarol: we'e , certainly among european regulators. where do you think it is all going? do you think it is going to be more rules and regulations when it comes to social media and should there be? bijan: for me, i think the real

concern is what is happening at facebook with data and privacy. think the facebook regulatory concern is warranted. i think there have been calls for the company to be highly regulated from the cofounder, even the founder mark zuckerberg thinks they should have a different -- things they should have a different view without they behave themselves. i think you will see more oversight in the u.s. and europe, and it's probably deserved. carol: you like these online communities. what do you expect we will be playing with in the future? bijan: our latest one is called discord. it is a massive social network for gaming. it is quite big. it has 250 million users. it has a different dynamic than facebook where people are talking about games. carol: gaming, is that going to

be -- bijan: i think social networking broadly is an important area. i think we are seeing it play a role in the workplace in verticals like gaming. we are still pursuing it. carol: i also want to ask you about -- i love your website. creating a movement, crazy product on a mission. i always wonder, when i talked to someone like you, the kind of trends we are seeing that will be more dominant in our world in five to 10 years. you talk about gaming. are there other things? bijan: we were early investors in a company called cruise, that gm bought. profound implications for cities, urban planning, jobs, how work gets done. it is exciting technology but it has implications for cities, urban real --

carol: a timeline for self-driving, i feel like elon musk and others helped speed up the process. do you expect it? bijan: it's a combination of technical advancement required but it also requires cities to sign on board. ultimately, self-driving should be safer than human driving. carol: talk to me about the investment environment. lots of opportunities out there? a lot cash floating around. propped up valuations. bijan: it is difficult, or challenging. it is also exciting to see all sorts of new investors come to the market, individual investors, angel investors. carol: thank you so much. bijan sabet, cofounder and general partner at spark capital. coming up, chinese tech titans alibaba and tencent reporting earnings.

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carol: this is "bloomberg boston at," live from the annual chamber of commerce meeting. let's turn to earnings. alibaba and tencent both reported results. estimatesp estimates, rose consumer spending. tencent sales fell flat even boosted by gains on investment. for more, let's bring in kevin carter, joining us from san

francisco. nice to have you here with us. alibaba and tencent among your top holdings. both seem to be struggling a little bit it seems with the slowdown in the chinese economy. how do you see it? kevin: if 51% growth, which is what alibaba reported, is a slowdown, then i think it is fine. the chinese economy is slowing down. it has been slowing down for a long time, but that is not really news. i think alibaba's report is fantastic. i think what joe said about the tariffs benefiting alibaba is true. tencent has its own idiosyncratic issues with the gaming regulations. the commerce business was up about 54%, cloud revenue surging 76%. walk us through some of the

different metrics. kevin: the core commerce business is their business. notably, they've dropped the e from e-commerce. that is the majority of the business, over 80%. it grew at 54%. the cloud business is an important business because of what they have been investing in. it is expected to grow for an average of 50% over the next few years. business is great. issues, of the tariff once they are resolved, is the things that have really helped alibaba. well-positioned to deal with any resolution that comes from the trade dispute. carol: i do wonder about how you look specifically at what is going on between the u.s.-china

trade regulations. it is having a big impact on the stock market, obviously. sentiment will move a couple of points a day depending on what the headline is. own internet companies in china, india, africa, south america. this is a secular trend. the trade wars are about agricultural products, manufacturing products. importantly, it is about economying the chinese towards consumption, toward alibaba, and a lot of that involves buying u.s. goods. i think alibaba is in a good position to benefit from the imbalance. talk a little bit more about tencent. tencent shares were not. are you making some forays into

new businesses, specifically finn tech? how do you see their outlook right now? kevin: they have obviously been affected by gaming, the government restriction of new gaming licenses, which hurt them a lot last year. they underperformed the broader market last year, they are underperforming this year. there is some light in the tunnel in terms of gaming moving ahead, which is their main business. the finn tech part of the theent story and also alibaba story, this is something i think most western investors don't appreciate, that the entire chinese economy is ripe for digitization. alibaba and tencent are basically owning the online pain this market. all sorts of things you can expand into, insurance and otherwise. asol: do you ultimately see, u.s.-china trade negotiations go

push for more openings, will it impact something like a well-established alibaba or tencent? kevin: i think it will affect them positively. at the core of the sort of trade tensions, tariffs, china and not buying as much of our stuff. the good news, china knows they have to rebalance their economy towards consumption. the and not buying as much of our stuff. consumption numbers continue to be quite good. there is no company better positioned for the future consumption than alibaba, and tencent in its own but different way. carol: one last question. your advice to investors right now in terms of their exposure to alibaba or tencent. kevin: they are both reasonably priced companies.

today's reports, they are both growing quite well. the p/e ratios are reasonable, the peg ratios are less than one. buy and hold both of those companies. carol: we will leave it on that. kevin, thank you very much. ,e's the founder of emqq joining us from san francisco. chamber offrom the commerce of greater boston annual meeting, our chat on its latest partnership. coming up next. this is bloomberg. ♪

carol: this is bloomberg technology. live from boston. we currently are at the boston chamber of commerce meeting. i am carol massar. here in vaccine discovery from polio to smallpox. marks the 160th anniversary. they are being honored tonight at the annual meeting in the chamber of commerce.

congratulations on your honor. view here. i want to ask you, you have been at the hospital for two decades. >> we have been working in pediatric care for 150 years. i have seen just amazing change over the 20 years. some of it has been derived from research. it is now at bedside's where we are not only better to diagnose -- able to better diagnose children but we can use stem cell therapy, immunotherapy. we are at the forefront of this. carol: whether it is how we can treat

all individuals and health care. sandi: that is absolutely right. we have spoken so much on taking the discoveries from the lab, the understandings from the lab and trying to move them as quickly as we can to the bedside. i think a decade ago, you guys were one of the first in the nation to do this. what was it about the innovation you needed to have at the hospital? sandi: there were so many people not only doing research at the lab but some of the people had great ideas. technology, digital, virtual, ai. we said we have to leverage all of those wonderful ideas and

express them. carol: tell me about artificial intelligence. health care is one of the industries where we are seeing it increasingly play a role. talk about ai, machine learning and how it is changing things. sandi: the amount of data in front of us that can express care and education, it is extraordinary. ge healthrtnered with care. we have used the learnings and knowledge. make better diagnosis is brain disorders in children.

learning, weh ai can have better opportunities. sandi: even better in the future. carol: senator elizabeth one is calling for universal health care. should we do that in an equal and cost-effective way? sandi: i think that is a challenge. we are all looking to be part of the solution. delivering better care, better quality at a lower price. i think that is an opportunity for all of us. over the last 10 years, it is delivering best value to those who purchase care and those who

seek it. carol: do think we can get closer to it? in terms of people having access to really good health care? thei: we have seen this in commonwealth. children are covered at a rate of almost 99%. i think our legislature and business community work together to make that happen. carol: i have to ask you about the theme of the dinner. what does it mean for you? sandi: it is an intentional statement about supporting women in business. it is not only the right thing to do but it is good for business. i feel incredibly supportive in this community at every level.

-- supported in this community at every level. this is making a formal statement. this is so important for our community in both business and society. time. thank you for your she is the ceo of the boston children's hospital. up, how general electric's plan to move to boston did not pan out as planned.

carol: welcome back to bloomberg technology, live in boston. i am carol massar. it was supposed to be ge's crowning moment when they moved to boston. thingsre along the line, fell out of whack. >> the company announced it was moving its headquarters to boston. >> the ceo was really trying to -- reinvent the company as a digital industrial company. they wanted a software focus. to thented to be closer

engineers in boston. boston was a perfect fit. >> ge would build this in the boston seaport district and bring 800 new jobs to the city. boston pledged property tax relief and the state of massachusetts picked $120 million in additional incentives. marty was was exuberant about the deal. walsh was exuberant about the idea. >> they are moving their global headquarters to the city of boston. we have other great companies by general electric is one of those that is such a big win for our city. was still flowing at the groundbreaking ceremony for innovation. >> i think boston should look to the future with great promise and optimism. this is the start of what i would like to call a terrific relationship. >> by the summer of 2017, the ground had shifted for ge.

>> there were cracks in ge's financials. their organic sales growth did not materialize to the level they promised. i don't think anybody realized how bad things were for ge. >> in august of 2017, the company announced it would delay construction of its new tower. pushing completion back two years to 2021. as the cash crunch intensified plunged,tock price this slipped far down the list of priorities. >> he was too ambitious. he wanted ge to be the be-all end-all for industrial companies. it became apparent that this digital effort was too ambitious. you saw them walk down that ambition. >> we have a lot of work to do

at ge. we have to strengthen the balance sheet. >> in february of 2019, ge abandoned its plan to build a new corporate headquarters and announced only 250 new jobs would come to boston. the company will be seeking property tax relief and it reimbursed to the state of massachusetts for $87 million in expenses. ge will remain in boston as a renter after reaching a deal to sell the land at animation point. -- innovation point. >> it was something that needed to happen. they are doing it in the appropriate way. say are clearly trying to we like boston, we want to be here but we don't have the cash that we did when we started this process. there taking on life as

amazon is headquartered here in boston. it is a little noisy, we will make it through. you told us a story of a general electric. i wonder about industrial trying to compete in an increasingly digital world. it is not so easy for these companies to make that turn. >> it is very hard. when you look at the giant in the information technology space , , microsoft, they have really started in this new digital way. it is very hard for industrial companies were used to doing things in a certain way. everything from technology to accounting is different. the culture is different. it is very hard to do. i think people still need

manufactured products. i am not sure it is a good idea for people were making goods to try to pivot. that is a good point. there are a lot of goods that still need to be manufactured. i have to ask you. you talked about companies trying to do something different. you are taking on the like of some of the huge players out there, amazon, much cheaper. you offered storage for just five dollars per month. it is cheaper, faster, how can you do that? >> it is 1/5 the price of amazon storage. carol: how can you do that? >> we have been in the cloud storage space for a long time. my partner and i started this company.

millions of people use it for backup. software towrite get on the edge of the disk drives. program is never think about things like this. amazon's storage product is over 13 years old. generation.ole new carol: we are going to try to power through. so make the argument that if you are storing in an amazon cloud, you will also want your applications. what do you say to that? amazon has over 100 different

cloud products. they have something in every category you can imagine. just like when i was growing up, you walked into a data center and every piece in the data center has an ibm logo on it. they took the printer business away. i think this and they will happen with the big integrated players like amazon. there are other companies that compute in the cloud that is an amazon. -- better than amazon. the future will be sophisticated developers using the best for each of these applications. carol: how long can you do that lower price point and keep

scaling up your business? david: storage -- the cost of storage is dropping every year. we are growing 25% month over month. everythingnt to be in the cloud, we just want to be the best in storage. we can keep that edge for a long time to come. by focusing 100% of our intentions on storage. this is an enormous part. carol: i know it is a little loud. thank you so much. still ahead, how apple and facebook can compete on their own cloud storage. that is next.

this is bloomberg. ♪

carol: welcome back to bloomberg

technology, live from boston. things took a turn for the worse this month. they fell for over seven straight days. joining us right now to talk about the business outlook is tom. >> the year is off to a great start. investors can of hold your feet to the fire. how do you see it? anyou have to have conversations with investors? >> absolutely. we grew our business in q1

almost 30% year-over-year. investors have been very happy. carol: what do you make of this marketing environment overall? do you just write it off to the u.s. china trade talks? how do you see it? >> there are concerns about the u.s. china trade agreement. the good news is the tariffs and things that are happening don't impact us directly. our business is doing well in china. doesn't impact -- >> we had not seen that impact -- have not seen the impact on our business. we all want to see a fair trade agreement worked out. carol: i want to ask you about the business that we see.

a lot of companies are coming up cloud tool.wn how does that affect you guys? >> there are cloud companies do delivery on their own. we cannot have that business. a lot of the internet traffic is with the biggest cloud giants. carol: i feeling everybody has been focused on the ipo market. finally getting some momentum. different results. what do you make of today's ipo debuts? er isn't doing so well. >> it is a frothy market. not as much as 99. when you have that kind of crazy whenit is not

share prices fall. you come back down to earth pretty quickly. carol: i think about when you guys went public, there is so much money around. i think about the work, five or five or 10uber, years, still not profitable. a price is no notion of on a price-to-earnings ratio because there is no earnings. then you get the revenue multiple. that is very dangerous. the market is value and growth quite a bit. you don't maintain those early-stage growth rates. in the end, profits matter.

carol: this is where we have been all week. i am astounded by the development that is going on. the intersection of development and biotech. boston?it about >> the talent here is incredible. the great universities, we moved half a dozen times over the last 20 years. we actually start of the company at m.i.t.. the talent is extraordinary. it is innovative. eager to work on billy heart problems. that is what we are doing. we are very happy to stay here, we flourishing and growing here. carol: that is what is difficult, finding talent nowadays. defining that difficult? here --nd great talent

are you finding that difficult? >> we are finding great talent here. there is a lot of competition. headquarters is back in california but it makes a difference when you're hiring here. we compete very successfully for talent. carol: thank you. >> thank you very much. that will do it for this edition of bloomberg technology. our final day of coverage in boston. this is bloomberg. ♪

daybreake to australia. i am paul and -- allen. we are counting down to asia's major market open. paul: here are the top stories we are covering in the next hour. wall street will bounce again. two day gains t is the most in months.