♪ taylor: i am taylor riggs in san francisco. this is "bloomberg technology." softbanknsiders a bailout as they are running out of cash. we have the latest. plus, cutting losses. the huber ceo says they have plans to revamp the company and address investor concerns -- the

uber ceo says they have plans. and digital fallout after democratic presidential candidate elizabeth warren posted a deliberately false ad on facebook. separating fact from fiction. but first, to our top story. is considering handing over control to softbank. they are convinced they can turn around the once high-flying started. wework is also weighing financing led by jp morgan. to discuss, i am joined by my , and, ellen, let me start with you. i want to separate the different deals. first, softbank taking control. what can softbank do that the other co-ceo's cannot do? ellen: this discussion going on

softbank, itk and is, look, the outlook is not good. more. interested in doing and if they did take a larger stay, maybe that could change the company, so i think the discussions on the table are about mid to long-term plans, trying to get expenses under control, all of the things that wework has been criticized of. if something were to come in and take control, do we know how much money they would invest, loan, put up, whatever the sort of term is here, to get wework to 2020? >> all of that is pretty much still in flux, and it comes down to the jp morgan debt package and the situation with softbank, who can get everything together quick enough for wework, because

at the end of the day, what it needs is cash. we know there are talks for a package that could be about $5 billion, and a lot of it is going to come down to how much softbank can pull together and if it can do that faster than what the banks are doing. taylor: so, ellen, you heard michelle mentioned that $5 billion deal from jp morgan. is that a separate issue here, or are those two tied together? though they are different plans, there could be some overlap, so it sounds like the board of directors and other people are meeting this week. we do not know exactly when, but it sounds like discussions are ongoing, and we expect to hear more about it, maybe in the next few days. with things on the table, there are going to be decisions coming up. taylor: michelle, i what to show you a chart that we made for our toomberg audience -- i want

show you a chart that we made for our bloomberg audience, having a pretty good day, ents on the90, 91 c dollar. what is the appetite right now for a junk deal? michelle: it is interesting. if you look at that graph or chart, the bonds are trading at pretty distressed levels amid the turmoil related to the ipo wework possibly having assumed than expected cash crunch. did rally,e bonds and that actually helped their borrowing costs, but it is still to be seen how much appetite there is from bond investors for a deal like this. you know, going into the end of the year, sometimes it is hard to get risky deals like this in a high-yield bond market done, unless there are some pretty lucrative or sweetened terms

offered to them. taylor: and, ellen, i want to take a look at another chart, which shows this about 10% la, some to uber and tes other risky companies we talk about, and on friday, we talked about terms of the conditions, 25 plus libor. any sense we do not have the appetite for the yield quest or any sense they are now commanding a 10% yield -- any sense that we do not have appetite for the yield? any sense about where they are commanding a 10% yield? ellen: the problem could be next month if they do not get money. this is a company that spends a lot and doesn't have control over expenses. we have seen them trying to cut certain parts of their business, layoffs, just trying to get

expenses under control. colleaguechelle, our at bloomberg, tim, pretty much said that the damage to softbank again wouldp wework be much more than any billion dollar investment. what is the damage to softbank if they stepped up to the plate here? michelle: it is an interesting opinion, but at the end of the day, softbank has already put a lot of money into this company, so they will not just walk away. probably, you would have to weigh the hit if they did that with the amount of money they're going to have to put into help turn wework around. it is kind of the same story with jp morgan. they have already put a lot of money in and have taken a reputational hit, and at this point, they may have to bite the bullet and help turn the company around, putting good money after other money. the companye does

stand? i made all of the background noise, do they continue to push forward, selloff investments, save cash? what do they do in the coming weeks as the rest of this gets had out? ellen: it seems like last week, they were going to close in private elementary school, theow, and they are selling gulfstream jet. there were some reports that they were maybe freezing the opening of new locations. reallye is that they are hunkering down and trying to get expenses under control while they figure out how to move forward, and i think any major cut they are likely to make, as the co-ceo's told staff, they are likely to cut a lot of jobs starting this month, so very soon, just trying to get the core business under control. ellor: that was bloomberg's en huet and michelle davis.

thatberg has learned investors including softbank and has a company that is valued at $16 billion, a top online financial services firm. and coming up, this week starts earnings season. what you need to look at. this is bloomberg. ♪

earnings season is underway with banks reporting throughout the week, including citigroup and wells fargo reporting tuesday, morgan stanley thursday. here with a look at what to watch when it comes to technology is our bloomberg reporter, so talk to me first. what are the banks' tec

hnological priorities here? reporter: you have banks spending the most money on technology, jp morgan and bank of america each spending more than $10 million, even when we see them keeping a big lid on costs. why are they spending the most money? because they are the ones going after the millennial consumer, so you can see this really doubling down, while the other investment banks will focus more on electronic trading, for example. technology, so with what are we looking to hear from them specifically in terms of hiring, digital payments, all of their technological advances? sonali: sure. we have been hearing that banks are hiring more coders, and you can see in this chart that digital banking is the number one thing that people are

looking at. with that said, i would not get too scared, because they still have a lot of branch networks, and something not high on the list, watching a relatively small percentage on what people are looking at in terms of hiring and expenditures here, and the same with biometrics and you hearn, even though a lot about artificial intelligence taking over other parts of the industry. taylor: and when you see digital banking there, 53 percent, a lot of these come from here to -- 53%, a lot of these come from peer to peer. what about zell? figuresyou can see the in their earnings report that those figures are a straight arrow upward, and it is pretty significant in exponential

growth, so it is pretty big, including not necessarily for ande but digital payments, bank of america does highlight its relationship with zelle, and both banks highlight this with younger customers in particular. taylor: as revenue remains uncertain, in such a volatile environment, do the analysts you speak to think it is a good idea that these banks are continuing to invest in technology, increasing investments in that space, even though topline revenue growth can be elusive at times? is true.t investors and others know that facebook is a threat, so they like to see these banks investing more in technology to prepare themselves for the future, because the traditional business lines are really pressured. if you look at trading, there has been pressure all year. loan growth is growing, but

rates are low, and people are going to want to see these banks transition into a new era while also attracting new customers in a competitive environment. a lot of investors compare that to the chinese counterparts who have seemed to crack the code in terms of digital payments and attracting people to more online methods. taylor: and is it just the big banks, or what banks are poised to outperform, given the transition to being more of an online company as opposed to a traditional banking company? visas, mastercards, the same ones we were talking about, so you can see them betting on technology and winning. a lot of them are investing and not seeing a lot of growth, but payments, if you look at the stock chart, it cannot be denied that they are winning in the investment race. investors are going to things that can be transacted online. taylor: the banks and the

increase over into the technology space. that is bloomberg's sonali basak. and i want to transition to uber , this eeo firing about 350 employees, hitting a handful of about 350 firing employees, hitting a handful of areas. joining me to discuss is our bloomberg technology reporter who covers the company for me. so, first, start with the 350 that we heard about today. what do we know? reporter: the way it was described in a company email, dara said this would be the last in a wave of cuts that he promised last spring, so as you mention, they had some cuts affecting marketing, product engineering, and now with this, ts andends to uber ea

autonomous driving, so it increases the number of people laid off to around 12 hundred or so. investors seem to like that, and the stock was trading down from its ipo in may and bumped up a little bit, about 4%, today. taylor: you mentioned this was the last wave. we also had july and september. heart of those cuts different from what we got today? of ate: this is part larger strategy that the ceo laid out over this spring. if you were to design uber, what would it look like, and they went department by department, and they said, hey, we have to seek profit, and as we have talked about on the show, it did deliver a $5 billion loss during its first quarterly report, not a good look. your question was how is this

different, it is a continuation of what was set in motion back in the spring, and he said this would be the last wave of cuts. whether there is another want to, who knows? we just know we are able to report and confirm. the $5 billion loss function, on the terminal, we see they are projected to lose $6 billion by the end of this year. are these cuts enough to offset that, or is it just a step in the right direction? : yes, they will not touch the $5 billion or $6 billion, but to be clear, the $5 billion loss reported last quarter, a big chunk of it, three dollars billion, was reported to ipo costs, -- $3 billion, was related to ipo costs, so looking at how their expenses are going to make sure that they are able to deliver all of the prophet, which, so

far, it has not been able to do -- deliver all of the profit, which, so far, it has not been able to do. no matter what way you look at it, it is not good to have your stock trading below where it ipo-ed, and there is the larger transformation that dara is trying to do since inheriting this company from its previous ceo and founder, which is not growth at all costs as a mentality. it is a continued growth, but let's take a look at profit. taylor: you mentioned growth. so finally, what does this mean for expansion plans? we have talked about autonomous driving and uber eats. how do they fit into the core ecosystem? all of theross different lines that we outlined before and geographically, about 70% of these cuts were coming

from north america, the other 30% spread out more globally because this company still needs to and wants to grow. lizette, thanks for joining me. coming up, apple is surging on unexpectedly high iphone demand, and then tencent holdings. more on apple and its complicated relationship with china next. this is bloomberg. ♪

china may be winding down its fight , withten -- with games played outside china, they have told reporters about the nba issue. tensions flared after the general manager of the houston rockets tweeted support for hong kong protests. the state run tv network which

showing nba games. meanwhile, apple coming under fire on monday for sending data, including ip addresses, to china's tencent. this is the latest criticism of how the company operates in the world's most popular nation. our reporter who covers all things apple for us. through how this is different from what they were doing before. reporter: to answer your question pretty simply, it is not really any different. this is more of a revelation that has come in light of the last week or two of discussion about the way china and apple had been working together and how apple has been operating, like you said, in the region. this comes down to a feature that is pretty simple in practice. basically, they use google outside of china and tencent in china to figure out if something is malicious to steal your data.

as part of that time apple can send ip addresses, which is a way to get your location, to both tencent and google. the question is how big of a concern that is, and that is what people have been talking about this morning and what the issue comes down to. taylor: and how valuable is this data to tgence -- tencent. able to gety are location data, it is very valuable because they are known to have strong affiliation with the chinese government, which, here in the u.s., that is not something people would be fond of, apple providing location data to a government-affiliated search engine. it does not appear anyone's location data is in danger. this is just a lot of people responding and criticizing apple, following the nba revelations that you so eloquently outlined. goodr: mark, i really

story out highlighting the demand for the iphone -- a really good story out for highlighting the demand for the iphone 11. is this similar to the comparable model one year ago? 750 is what the iphone ii starts at, but this year, a lot of people are due to upgrade, right? tends toge consumer upgrade their iphone four years ago, and a few are years ago is years ago wasur s werehe iphone 6 and 6 popular, where they change the screen size. those are having batteries that are starting to give out. the processors are quite sluggish. they are losing compatibility with ios 13, and it is time to

upgrade, and that is this fall, and you are seeing people jumping on these new models. and the street has been really, really bullish on this. given that we got a potential phase one trade revolution -- resolution on friday, we know that some tariffs will not go into effect on december 15 -- any idea if that is also boosting demand if apple does not have to pass on higher costs to the consumer? mark: i don't think so. i do not think consumers are thinking about that. these tariffs, whether or not they were going to go into place or not, but to investors, these tariffs not going into effect, like you said, could give some optimism that the december 15 tariffs also will not go into effect. obviously, we do not know that, but i do not think that consumers are seeing any impact, with the iphones. taylor: some are really bullish

on this also because when you take a look at the average selling price, it also gives some momentum to that average selling price that is so key to earnings. what is the number one thing you want to hear about on earnings on october 30? i sort of disagree with credit suisse. i think that the esp may go down quite a bit. one thing that is lost with this is still very -- is it likely to be down year-over-year, and the asp going down, so we will see, but to answer your question, the most important thing will be the holiday quarter q1 for 2020. "bloomberg technology's" mark gurman. is senator elizabeth warren going after facebook again,

warning of dangers ahead of the 2020 elections. we break it down. this is bloomberg. ♪

this is bloomberg technology. i'm taylor riggs. democratic presidential hopeful elizabeth warren is taking on facebook's political ad rules, and doing it by buying ads on the social network. the democratic senator bought an ad that falsely read "breaking news -- mark zuckerberg and facebook just endorsed donald trump." she's going after facebook for refusing to fact check politician ads. this comes after the fact checking policy allowed trump's team sharing ads that showed

vice president biden promised ukraine money for firing a prosecutor. joining me to discuss it all is sarah frier who covers facebook for us. eric newcomer, who covers the intersection of tech and politics. on the phone, iona college political science professor and a senior advisor. sarah, let me start with you. talk to us how we got here with this fight between facebook and elizabeth warren. sarah: we are looking at this fight about what impact facebook has on the election. facebook has an algorithm that suddenly can manipulate what we see in their feed. they have these rules that they apply about what can come down. warren is calling them out by saying by taking no action, they are actually taking action. the funniest thing was facebook

responded to this by tweeting sayinginst warren and the fcc does not want broadcasters to discriminate on candidates' ads, so we don't want to either. warren clapped back and said you are making my point. you are not regulated. taylor: we have the tweet showing the fcc, basically what elizabeth warren is saying, you are making my point. is up to you whether you take the money to promote lies. again, sort of making her point, if you will. sarah: absolutely. what i think what this shows us is the election is going to be about facebook -- the discussion about the election as much easier to run against facebook than the opposing candidate because facebook does hold a lot of control, subtle or direct controls over what voters will see. taylor: eric, if you take a look

at the intersection of tech and now politics, what does this fight showed you from the political angle about how much tension there is between big tech and some of these democratic candidates? eric: i agree with sarah. they are working the left right now. there is a push among conservatives to really make sure that facebook and google allow a wide range of sites. some that journalists might say may not pass fact checkers. democrats have been arguing that as well. you see this jockeying up pressure -- conservatives on one side, elizabeth warren and democrats on the other, pushing facebook to police what is on its advertisements. it is not so much legislation at the moment. it is just sort of political pressure. facebook knows this pressure is coming as all of these different politicians gets to weigh in on antitrust investigations that will progress and privacy legislation that could come up.

they need to stay close to these politicians while they have the politicians have these interests around what speech is allowed on the platform. taylor: as a political science professor, what is your take on this fight between elizabeth warren and mark zuckerberg? guest: i think it is illustrative of how far we have come. it is astounding that now you have one of the leading candidates in the race for 2020 taking on a big tech company. she's leading the charge and other democrats and republicans are sure to follow. that is far and away from where we were just four years ago, let alone eight years ago. i am old enough to remember barack obama's campaign when having a website was a big deal. you think about how far we have come now. i think part of the problem here is we look at what elizabeth warren is saying is that it is narrowly focused on facebook and mark zuckerberg in the context

of this 2016 and what the democrats did. certainly not her plan. but the way she talks about it -- i think there are larger questions beyond facebook and mark zuckerberg that need to be addressed, but still has not resonated popularly. addressy, her plan does -- she has a four-part plan breaking up tech companies. breaking up is probably an overstatement, but addressing these issues. a lot of potential legislation. all of the attention at this point seems to be focused on facebook because of its role in 2016. to me, i think from a legislative perspective, that is a bit of a problem. taylor: is facebook taking the right approach in your opinion of being hands-off? not wanting to police content? not wanting to do a lot of fact checking. is that the right strategy? jeanne: i'm astounded and i think sarah said it earlier by their response to elizabeth warren.

it is not a good idea normally for a corporation to say we are like those networks that are regulated by the fcc because what they are doing is inviting in regulation. they are far better off staying the platform they are where, by the way, since 1996, they have been protected by challenges in terms of libel and are not regulated. if they have public pressure, self policing makes sense. but the statement they made really opens them up to the argument that several people have been making, which is that you too should be regulated. that is not a good strategy in my estimation. i don't know how that got through facebook and they allowed that to be the statement they put out. taylor: what does this mean for them as we approach 2020? the pressure will only heat up. sarah: absolutely. i think jeanne made a great point is that facebook for years said we are not a media company. we are a technology platform. a place where people can talk

about whatever they want to talk about and see whatever they want to see. that is not a neutral stance. i think what we are going to see ahead of the 2020 election is politicians pressuring facebook and pressuring facebook if facebook makes a change, it will help their campaigns in the way facebook ended up helping donald trump in the 2016 election. not just by ignoring the russian influence, but also by assisting his campaign in running their advertising that ended up playing to people's fears. taylor: so much still to discuss as we approach this 2020 election. sarah frier, eric newcomer and professor jeanne zaino. thank you for joining me. i want to stick with facebook because the social network's proposed cryptocurrency libra continues to lose backers. on monday, booking holdings, the parent company of travel sites like kayak and priceline, jumped ship from the libra association. that means facebook's group has

lost seven of its 28 founding members. others that have left include mastercard, visa, ebay and paypal. joining me to discuss, max chafkin. what is the significance that now seven of 28 are out? max: not the direction facebook was hoping this would go when they unveiled libra. what you are seeing here is that there has been a huge sort of public pushback from regulators, both in the u.s. and europe, to the idea of facebook basically, along with a handful of other companies, minting its currency. the fear is that currency could weaken the power of national currencies. what is interesting here is we have a bunch of the sort of most reputable payments people getting out. last week, there was a letter from two democratic senators that basically said, you know, you guys better be careful here

because if you are getting involved with these potentially unregulated payments with facebook, we might look at your overall business. you have these companies saying it is not worth it. the other thing here, just to facebook strategy -- mark zuckerberg going to congress to testify on this next week. this kind of will potentially change the dynamic there. we might expect lawmakers to speak a little bit less about libra, maybe more about facebook's other issues. taylor: it is interesting you brought up the letter from the democratic senators. it is like a lot of black male pressure -- if you join this association, you will be damaging your company. what do the remaining companies do regarding the letter and the heightened political pressure on them? max: we definitely saw some people use the phrase blackmail. that is probably pretty harsh description of it.

what the senators are basically saying is if you are inadvertently financing things like terrorism, we will look at your business overall. you can debate that, but i think there is a reasonable position there. one thing that is important here is facebook really does not want to own libra on its own. it is important for facebook to say this is a consortium. facebook is not replacing your world currencies with the facebook dollar. we are working with some of the best and brightest names in finance, tech and putting this thing forward. the hope is this will be a broad coalition. what we have left now is a bunch of crypto companies, as well as companies that don't necessarily have as much at stake. they don't have like a giant payments business that could get scrutinized by congressional committees. i think the hope here from facebook's point of view is facebook continues talking about this. mark zuckerberg goes to washington.

he begins to address regulator'' concerns, and slowly but surely, you have some of these guys coming back on board. they don't necessarily want to stand out there with mark zuckerberg while he is getting pelted with questions. maybe down the road as this thing becomes more real, you start seeing some adoption. i think that is the hope. we have to wait and see. taylor: do companies not want to join because of the regulatory pressure or because being associated with the name that is facebook is not a smart tragedy right now? max: i think both of those are possibilities. as we said in the earlier segment, elizabeth warren basically trying to use -- this is one point of view -- it could be argued really using the relative controversial qualities of mark zuckerberg to attract fundraising and bring on supporters. clearly, facebook is super polarizing. i think the other issue is that it is not entirely clear what

libra has to offer for some of these companies. companies that have really good businesses kind of working within the traditional financial farem -- we don't know how out this is. this could be like a really secular thing that could excite finance twitter and financial nerds for good reason because it is cool. if you are sitting with visa, mastercard or one of these established companies, you might ask yourself is this worth the trouble? how does this help our business today? taylor: max chafkin on all things libra. thank you for joining me. coming up, taking on wework. the biggest name in shared office space is struggling, competitors are poised to pounce. we speak to the ceo of the rival industria, next. this is bloomberg. ♪

taylor: before wework's ipo went belly up, it was the hottest name. it is the largest private-sector tenet in new york and london thanks in part to customers, free rent and rich broker commissions. moves that help it get past its competitors. now its rivals are rushing in to take advantage of wework's current struggles. one such rival is industria and they say using management agreements instead of outright leases will help set them apart from wework. joining me now for our work shifting segment is the cofounder and ceo of industria, jamie haeadadari. talk to me about the upheaval wework has caused to the industry. jamie: thank you for having me. let me start to define quickly

what industrious does. we are the largest premium workplace provider in the country. we have about 100 locations across 50 cities. within our sector, we are known for three things. we have the best economics in the industry. the highest customer satisfaction scores. as a result of that, we are the first company to move from signing risky arm's-length leases with landlords to doing partnership agreements with landlords. as a result of that, now on the eve of being cash flow positive. that is certainly different than what you see in the rest of the industry. the upheaval -- go ahead. taylor: give me more about your business model. you talked about the management agreements and how you differentiate yourself. so what is your business model? jamie: what we do is go to landlords and partner together to create a workplace, you know, a shared workplace complex at the building level and use that

to positively influence the performance of the whole building. when you partner with a blackstone or brookfield, the quality of workplace experience you can deliver is much different than when you sign a lease with a landlord and are not able to coordinate with them in the delivery of the workplace experience. it is much riskier business than we are seeing now. taylor: you talked about being able to ride wework's coattails on the way up. it was the leader in the codesharing workspace environment. now that we work has faced some struggles, how are you hoping to also stay in the game and differentiate yourself? jamie: i think what we see is most companies are transitioning from the experiment to phase of our industry to the more pragmatic rollout. most companies say i am. as in having the third party deliver the workplace experience. most custo companies measure how

would went. how happy are my employees? what is my employee attrition rate when a provider like industrious do this for me? the reality is most fortune 500's, most silicon valley businesses in the last year have come to the conclusion that they got as good or a better outcome. they are starting to double down the utilization of service. the wework struggle comes at an odd moment because you see the industry growing incredibly quickly, but the largest provider in the industry, for reasons unique to their own management style and some of the strategic decisions they have made, are having to pull back on growth. that is providing a very interesting moment because if you look at a seattle, dallas, 400,000 new seats of demand coming online, wework will put 250,000 on those seats and then they will have zero new seat s. for providers like us, it is an exciting opportunity. taylor: the biggest complaint from the street is this is an

industry that has not been tested in the case of a recession or a downturn. how are you protecting your downside risk? jamie: i think there are some good arguments this industry will perform very well in a recession and companies using that as the ability to move more forcefully. the reality is what we always assumed is this industry will perform like hotels or airlines or workplace operators of yesteryear in a recession, which means a 9% to 15% revenue decline. the key is to build a business with margins -- margins are north of 30% at the unit level, that can withstand that revenue hit. the problem is providers have not focused on profitability, have not focused on building those healthy sort of sustainable margins, because then a 12%, 13% revenue decline could be a problem. taylor: what are your outdated

numbers on being cash flow positive and profitable? jamie: updated numbers? we are about a month or two away from that. the way this has worked is our company has grown revenue at 120% a year, every year for five years in a row. we will probably grow 120% next year but we have been disciplined in the overhead growth. you don't usually see that. for us, we have made it a commitment to grow overhead at 50% a year. if you think about how that works, if you will do revenue at 120% and revenue is 60%, you will become profitable pretty quickly. you go very quickly from there. that is what the next year or two has in store for us. taylor: jamie hodari, thank you for joining me. still ahead, while ipo's for companies like lyft and uber, did not well investors, pinterest did. they are getting ready to

reap the rewards. that is next. this is bloomberg. ♪

taylor: in a year of some big-name lackluster ipo's, one has stood out -- pinterest. it is the fifth best public debut among technology and communication stocks. its early investors will get cash in on tuesday. that is when the 180 day lockup expires. to tell me more about what is behind pinterest's success is bloomberg intelligence senior analyst. i love the title of your latest note. talked about how the second quarter momentum can carry the stock through into the second half. what are the fundamental driving that momentum? guest: they have been investing a lot in tools in the background to improve recommendations for the users, to make tools for advertisers to upload catalogs. we are seeing momentum in terms

of how these tools are actually helping them fuel usage and revenue. yes, the momentum should continue in the second half but the difference will be last quarter, that strength was a surprise. this second half will be in expectation. taylor: you talk about scaling. when do we expect them to start scaling? jitendra: it is still an investment year for pinterest despite their strong quarter they reported last year. it is mostly because the he differential they have towards their peers, and the conversion of these new ad units, radio being one of them, it will take time. 2020 is what they are really priming the pump for. international markets, you can see strength coming from canada, western europe. those things would actually add up to the 2020 expectation. they are setting themselves up well for 2020. that does come with some volatility in the second half as

they ramp up and prepare for that. taylor: one thing that sets up interest from other peers is that profitability is visible. when do we expect them to turn a profit? jitendra: it should be next year. it will take a couple of years, but like you said, compared to other names, the visibility was definitely higher in pinterest. they have shown that they can manage these costs well. that is the perception change that happened. can they hold that perception in the second half? that is a question mark. i would not be surprised if there is volatility. as a business model in general, because it is an ad driven business model, longer-term margin should be higher. taylor: given the path to profitability, how has that been reflected in the valuation reflected to its peers? jitendra: it is one of the reasons why you see hesitation from a consensus standpoint. yes, it is a strong long-term

growth story, but the valuation is higher than its peers. we have seen a correction in the stock the last couple of months. it is going to have to show that consistency and more confidence in the long-term story. opportunities that are presented in front of them before consistently justifying the valuation. taylor: only 30 seconds left. key note you need to hear on the earnings report? jitendra: continued progress on the engagement side of things and really how new advertisers are coming into the platform. so far, it has been skewed by advertisers spending more than before. but how areter roi, they scaling the new advertisers? taylor: thank you so much for joining me. that does it for this edition of bloomberg technology. bloomberg technology is livestreaming on twitter. check us out. be sure to follow our global

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