taylor: i'm taylor riggs in new york, in for emily chang. this is "bloomberg technology." wework set to file a prospectus

for its ipo this week. plus, election surprise. argentina's primary results. but, is it spreading to a robust tech startup scene? icahn wields influence. what he has agreed to. our top story. the theme of big tech is hitting the public market. wework is planning to make public its prospectus for an ipo this week. t said in april it had filed paperwork confidentially.

we are joined by two guests. ellen, as we await the prospectus, what are the key bullet points you are looking for? llen: everyone will be looking to see the financial performance of wework. nprofitable. it is a company that spends a lot of money to grow very quickly. i think people are concerned

that the business model can't tand a downturn. taylor: ellen talks about the financials behind this company. what do you make of the valuations here? barry: i think ellen is spot on, people will be looking through it to get the numbers and figure out the valuation. last valuation is based off of softbank's investment back in january. it is hard for me to emphatically say that is a high valuation, but it feels high. i think real estate investors will be very scrutinizing of any kind of high-profile and high valuation ipo. taylor: at what point do you want to start to see some profitability from this company? barry: it is understandable that if you have a company that is growing, you want to give them that time to create the market share they want to create. at the same time, there has to be a limit of how much you can run in the red for investors can see some profit.

i would hope that, within the next 12-18 months, i would start to see some profitability. taylor: one thing that really stood out to me, top line is about $1.8 but bottom line, they are losing about $1.9 billion. at what point are investors getting excited about topline growth versus being nervous about how much they are losing on the bottom line? ellen: i think that is the major divide. ome people will look at it and say, this company has incredible growth. commercial real estate, one of the biggest financial opportunities in the world. others will look at their spending and say, i'm not sure this is sustainable. certainly, it's growth is essential to the value of the company. it is so valuable and so much different to what other companies and providers might be able to provide. taylor: who are their biggest competitors?

ellen: other companies are rying to follow. companies such as convene, industrious, they are really looking forward to an ipo. i think the biggest competitor tends to be large enterprises, in-house. if your amazon or google, you look for places for your company to expand.

taylor: we were talking a little bit about that on the commercial break. you analyze real estate companies. is this a real estate story more than a tech story? barry: we believe it leans more towards the real estate story because their fundamental is they lease office space. there is a large technology component that is very nique. regis is in that space. they don't bring quite the technology that wework brings. most of their spaces are fairly well leased, and very positive comments. also, one third of their tenant

base is fortune 500 companies, who use it when they enter a new marketplace, especially internationally. taylor: we've been also looking at other big tech ipos, uber, lyft. how much of an impact do you think the marketplaces on this given the volatility we've seen and the fundamentals you are ighlighting. at what point is this shaky given how volatile the market is? barry: you are spot on. this is not the market that uber ame public in. given the performance of uber, not living up to expectations, investors will be really scrutinizing big, high-profile ipos and their valuation. taylor: when we talk about some of the business models here, in terms of runway for growth, is this a u.s. story?

ellen: they have been expanding overseas, especially in sia. i think they will be putting forth a strong international growth story. looking at the founder or ceo letter, try to get a better sense from management how they want to spin their story for investor. look how much growth opportunity we have. this is something you want to be a part of. taylor: thank you. barry oxford and ellen huet, thank you for joining me. coming up, a rally for roku. rise as much as 6%. $150 price target. f you like bloomberg news,

check us out on the radio, the bloomberg app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg.

taylor: roku's price target raised to $150. they touted the company's position within the streaming video market. shares rose as much as 9%, extending an advance to a fourth straight day. we are joined by mark mahaney from san francisco. thank you for joining me. i think my first consensus, reading all the analyst notes, everyone seems pretty bullish on the stock.

where do you stand? mark: this was a strong buy for us earlier this year. we downgraded it. given that the stock has moved up an additional 30% since the downgrade, it was premature or wrong. it is a major beneficiary of the upcoming streaming wars. it is a partner with disney for the upcoming disney plus service. fragmentation of viewing away from netflix, anything that does that is a win for roku. there is also a play to expand into other markets. the winds are definitely within this company's sails.. we are not buyers here because of valuation. taylor: you are always invited back. we won't call you wrong, we will just call you early. talk about the valuation. there have been concerns, eight 30% run alone in the last eight days. what is the concern aside from valuations on the fundamental level of this company? mark: we think most of that move has been very well warranted. i don't know if 13 times is rational and 12 times is perfect. the fundamentals are about the

est you can buy. 80% year-over-year growth for the platform revenue with about 70% gross margins. that is very rare air. this company is a little bit on the smaller side, so that helps. on the device side, there is competition from amazon and google. there are a lot of these internet advertising behemoths. the june quarter has been a phenomenal quarter. every platform including roku showed accelerating and revenue growth. there is something going on. i have theories as to what it is. at some point, the business will run into the fact that it is competing for ad dollars with the google and facebook's of the

world. taylor: in my terminal, i have a really interesting chart showing roku versus netflix. you talked about some of the competitors. apple, amazon. some of these things could become competitors year to date. does roku have any competitors? if you are an unowned content provider, there is nowhere to go except release it on roku. mark: there certainly are some competitors but they are clearly in the captain's seat. the ad supported streaming platform, they are kind of a switzerland in that world. now they are the leading tv treaming form.

they have surpassed samsung in terms of -- not their brand, but the number of dvds that have their streaming operating system embedded in there. they have really well positioned themselves over the years. so, hats off to roku. taylor: you also cover netflix. 12 months from now, you will have a lot of competitors. what is the cost to netflix spending on new content, keeping up with slowing subscriber rowth? mark: i think you just mentioned it, all of these new launches. november 12, we have disney plus. apple streaming services, at&t, comcast.

as far as i can tell, pringles is going to launch a streaming service. the concern near-term is that the launch of all these services ill steal away growth. one of the reasons netflix missed its numbers is because of a price increase. that is all the debate around netflix. the fang stocks. i would argue netflix is the most contrarian long ball here, which is one of the reasons we like it i think, in the back half of the year, the content coming out of netflix is so strong and my guess is that will translate and i think the shares

will be materially higher at the end of the year than they are now. taylor: one thing you mentioned was pricing power. i can join hulu for $5.99. when are we going to see these services pricing for five dollars? a month or so? mark: i don't think we will. this is a very expensive business. you are competing against netflix, which is spending well north of $10 billion a year, they are still not cash flow ositive. it tells you that this is a business where scale matters, so whoever has the most subscribers can advertise commerce cost.

if netflix can't make this work, nobody else can. i think that five dollar offer will be few and far between. think it is a scale game. whether there are slowdowns, that may be the case. after that, i don't think you will have 10 streaming companies that went or five streaming companies that win. my bet is you will have three. it will come back and seller content to amazon, maybe disney, and netflix. taylor: bold calls. thank you so much. coming up, with more of your personal data online, identity theft is on the rise. what needs to change. and bloomberg technology is

livestreaming on twitter. check us out @technology. this is bloomberg.

taylor: six long years it took him to get his good name and credit rating back after identity theft. he navigated the ordeal and his essay is in the new edition of "bloomberg businessweek." walk me through what happened. drew: this is an ordeal i went through in 2013 when i got a call from a police department in florida, asking me if i had ever lived in florida. i was living i believe in brooklyn at the time. what happened, a person used a fake id with my name and information on it, they had gone bank to bank in florida opening up accounts. they then sold an rv in texas and wired the money to russia. what i didn't realize was that this was going to have ripples throughout my life for years to come. it would destroy my credit rating entirely, make it impossible to get a new loan, credit card. it put me on a list with the national security apparatus. it took me years of dealing with financial institutions to try and get this cleaned up. it is very frustrating. it should be very scary for anybody who is at risk for this. taylor: you are a healthcare reporter but you are now well-versed in cybersecurity and credit card companies, fact checking companies. why aren't we seeing more

companies double authenticating like on gmail? why aren't we seeing more of that? drew: i want you to think about how easy it is to sign up for a credit card. e make it really easy to get credit. we basically require you to have a name, date of birth, social security number, then you are ready to go. it is harder for me to sign up for my gmail or log back on to twitter. we do not have a great system to verify that the financial ransaction actually do represent us in terms of transitioning those things. taylor: when you talk about the equifax heck, what was your experience about not only that but then in your case with some of the online credit monitoring companies. how responsive where they? drew: about as responsive as you would inspect them to be, which is not at all. what is the purpose of a credit atings agency? it is to say, we want to make sure you are a potential loan holder in good faith. we also want to make sure, if you haven't paid your debt, that thers know that.

they are there to help out lenders. that also means that, when you have your identity stolen and it wasn't your fault, they make it really hard to go about undoing that. we look at the equifax hack, 147 million people in this country, almost everybody with a credit profile. we probably don't have enough criminals to keep up with the fast supply of raw material? he took a plea deal right before i was supposed to go to miami and testify. i mostly got my life back. aylor: what a nightmare. that was bloomberg's drew armstrong, fascinating story.

coming, the tensions in hong kong are reaching a new level. protesters have shut down the airport. the latest, next. fascinating photos from the airport and all of these protests in the last 72 hours reaching new levels of stress. this is bloomberg.

taylor: this is "bloomberg technology," i'm taylor. hong kong airport authorities canceled flights after protestors swarmed the main terminal building. this is the biggest disruption in the city's economy since demonstration began in early

june. we have the report from the airport. >> the airport is slowly getting back to normal here. we have seen protestors have called it a night. they have left some of the signage all over the airport walls but something we have never seen before. up to 4,000 demonstrators packed the arrival and departure halls with numerous flights being canceled. we are seeing flights coming back online and set to take off on tuesday morning and it could be hectic and flights to hong kong could be canceled on tuesday. but what is interesting in this latest development, the lack of police presence. to e were no officers

disperse these crowds. police are taking a cautious response after a violent weekend. both sides hardening their stance in this recent escalation ere and beijing ramping up the rhetoric saying these crimes are being committed by protestors and seeing signs of terrorism. and she meets with the reporters on tuesday morning. taylor: for more, i bring in inac fish, senior fellow and san francisco, tom, issac, let me start with you, fascinating photos, what changed for you in terms of investments and tech companies after the heightened tensions? >> people in hong kong are

really upset with the way the hong kong and beijing government has been responding. this is not a short-term story. this is not something where investors can wake up and everything in hong kong is back to normal and oasis. this is a long-term story and if the protestors do disband and the streets are not as chaotic, it is going to be alibe. taylor: you heard how tom said this is going to be a long-term story and overseas here and back to your reporting in san francisco, what are local tech companies starting to brace for? >> they are looking at this as a point the out, this is long-term. the signs pointed irblely to

this being in regards to a specific piece of legislation that has been shelfed. but clearly this goes much, much deeper and now at the airport and washing up on the rest of the world's shores. this is not something that is legislated right there in hong kong. this is affecting flights in and out of hong kong and the protestors are looking to disrupt their role as a global center and gateway toll china and they are sending a signal and digging in as is the chinese authorities. the pictures that we are seeing, the video images of what appears to be amassing of chinese military just over the border, those haven't been verified but there are lots of images in

video clips making their way ound twitter that china is sending a message and they are not going to walk away and let the protests continue. taylor: if you are a local startup, do you start to pull your money out? >> you start to play out what the political risks and what different scenarios could be moving forward. really since the mass acker in 1979, the feeling that china and hong kong are safe harbor for investments, at least that is the public view. and what other tensions we are seeing in mainland china and are roughly one muslim -- one million muslims in concentration

camps. it is possible that some of the unrest we have seen in the middle east over the has several decades could be the new normal. taylor: tom, we are mindful of the protests in hong kong and aware there is a broader global trade economic story under way as well between china and the u.s. as we turn to asian look at the global trade story, there is a september 1 deadline that the president has tweeted about with additional tariffs. within tech, what doe those additional tariffs has you concerned the most? >> i mean it is already showing up across the tech sector and big shock waves, most recently in the companies doing business with huawei. they are being told you can't source your components to huawei. o it effects the chip makers

and big questions what tariffs ll be slapped on apple devices. fox c omp m is the manufacturer of a lot of apple products on and inland and apple can has shifted its production outside of mainland china. the tech industry is very skend about how much further this trade war is going to go, how much it's going to affect demand and see chinese subcity tute their own -- substitute their own products instead of the apple devices and you starting to see all kinds of changes in terms of do venture capitalists want to go to china.

you have seen a dropoff in recent months. the ripple effect is going to deepen. taylor: you heard tom mentioned smartphones, where does huawei stand? >> in the medium to long-term, this could be good for huawei and provide an incentive for them to act in away that is smarter for their business. but more importantly, it could provide them with added support demeckically if chinese consumers and the depoft decide to make huawei for china and china's global status and see positive numbers in terms of purchasers and contacts. taylor: a story that isn't going any way soon.

coming up, voters in argentina are protesting and a big blow. what it means for the startup, that's next. and so far, we'll see what is on tap for those, next. this is bloomberg. ♪

taylor: argentina saw shocking primary election defeat. whileso sunk a record low the bonds and stocks plunged globally following this surprised result. the tech startup scene has managed to flourish.

but what the prognosis is now for the d.c. startup space given their staggering inflation. have the co-founder of s.t. labs with the firm of a global and operations in argentina. great to have you. so much of your investments have been centered in and around argentina. what changed for you today? what changes for their technology companies down on the ground? >> we have been operating in argentina and we have seen it all. nagsization of your retirement assets and cheating on the inflation statistics. you had to deal with all of these things. if you are operating are the reality these startups make

their money in brazil. hen the pesto devalues, it increases. if you are nothing really changes. . u might be in a better fewer startups are going to be created and and more wary to invest over the re-election. let's not overreact. this is a terrible news for the country but these are the primaries and see what happens until october. taylor: do we know about the incoming government in october assuming that the incoming president and what could it be around startups snr do we have any details? >> there have been very

extensive details. i would be skeptical of the promises they made if christina's position of vice president. the concern is she is controlling pulling the strings and will be the defacto president and her president and her presidency has been actually horrible for the country and reating and inflation. regardless of the reassurances they have made to the public, i would be skeptical. taylor: if i'm looking at a country that defaulted on its obligation, do i have any more serpt to invest in a company on the ground that i could get my money out? >> in the past, you have always found ways to deal with that. than uld structure around

issue is would anyone want to the prospects be there and? general, the economy is negative. if the company sells, can you sell it. taylor: we will follow it. and co-founder. joining us from argentina. a story i want to watch. there is an agreement that will see the activist awarded two seats on the board. he disclosed his position earlier this month arguing that it was undervalued. he has been building his position slowly since and 14.8%

of the company. joining us is the bloomberg team lead. what is he going to win? >> this is a really quick fight and known to drag out fights. but this went down relatively quickly and owns 20% of the company and in this agreement he cannot go higher than 20% and two of his seats will be on the board. taylor: what does he say? paul says it is swrupped valued when an activist comes in. but you want to hear them out. >> because the fight happened so quickly, we haven't heard from carl. he did say before on tv he hought the merger didn't go so

great. the stock has been down 50%. so he was a little critical but othing as bad as he said about occ idental. taylor: some of the analysts say that the future for the company could be one of an acquisition. some analysts were saying this makes more sense for them to come in. what is the exrate stat guy? >> i spoke with the company. but one of carl's directors will serve on the a.m.a. committee and the press release did say he was working with morgan stanley and do have a banker, but i can't say it would be a target sm but it is that size of

software company that get taken out by bigger companies. would it be wise to sell at this value? it was a $4 billion company. taylor: who are the other investors and who else is behind this company? > a czech investor says he supports it. but i think a lot of investors. so they are not getting a whole lot for their money. taylor: we hear how good it is and any other strategies, where else. >> they have all the buzz words. but from what i understand talking to experts, the focus that they have, it's been

commommedy and services around the cloud. we'll see what the future hold for them and have new products coming out. taylor: we will keep an eye on those new products. and coming up, peter till, and the trump administration and why he wants their hands often crippings. that's next.

taylor: conservative tech investor isn't shy about throwing his weight. he found a topic where he broke with the u.s. government. >> maybe go back to our rivals in china. and maybe other people get it. i don't trust the f.b.i. to keep it protected in the f.b.i. taylor: william barr last month on the very same topic. >> i'm suggesting that it is well past time for some in the

tech community to abandon the posture that it is not worth exploring and turn their talent to developing products that will reconcile good cybersecurity to the imperative of national security. taylor: let's go to washington. very complicated story and i'm glad for you to break it down and what peter is talking to as it relates to encryption. >> if you have these messages that are only able available to sender and recipient and law enforcement could get into those with a warrant, that that is going to imperil privacy and make bad actors and get in through those back doors as well and he is saying i want strong

encryption and taking the hawkish privacy line. and we should say a long standing tension between tech companies at least into the obama administration. taylor: i imagine companies like facebook are pushing back are they claiming privacy rights? how much are they pushing back? >> not something they will get on the soapbox and because it is hard to take the other side of the debate but something they have been talking to enforcers and lawmakers in washington for the many years past in what you said before, the f.b.i. is looking to social media monitoring. that is a public policy. not encryption but the same

pressure that these considers companies are part of the solution that crimes are happening. taylor: what are the darpgs of letting the u.s. government to ave this sort of quote, back door in? is that a real issue? >> the threat of bad actors seem to be a real issue when you talk to the and chinese will get into the russian hackersment there e a lot of sophisticated bad actors working around the world rying to get into people's one-on-one communication. could this chill free speech. that is more for the university dorm room or seminar hall. may t be resolved in there

be compromises. taylor: what i like this story which centers around the story with peter who lined up with the trump administration has said big tech is less leaning. what is it leading? >> he has been fanning these flames particularly on google. he is a board member of facebook and not go against the company that he helps to lead but he goes against google and called for the f.b.i. and c.i.a. to be probing them over their artificial intelligence. during that interview he talked about the tensions between he and senator mcconnell he said the tech companies are filled with these liberal employees and

have reason to believe them. peter has the president's ear. he has advised president trump on issues and regularly speaks to him. they could hold weight. but it's a view that the president and the white house will take seriously. >> that was bloomberg. that does it for this edition of technology" check us out. on twitter.t tiktok this is bloomberg. ♪ from the couldn't be prouders

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>> this is embarq daybreak middle east -- bloomberg daybreak middle east. >> carrie lam warns hong kong could fall into the abyss if protests continue. is the political crisis becoming an economic one? >> the issue in hong kong is one of many issues weighing on traders, as investors seek shelter. >> the peso plunges and argentinian stocks wiped out after mauricio macri's shock defeat in elections. anti